E Project Geojit

E Trading of securities in Geojit BNP Paribas Financial Services Limited Kadappakada
INTRODUCTION
The business is a legally recognized organization designed to provide goods and/or
services to consumers. Businesses are predominant in capitalist economies, most
being privately owned and formed to earn profit that will increase the wealth of its
owners and grow the business itself. The owners and operators of a business have as
one of their main objectives the receipt or generation of a financial return in exchange
for work and acceptance of risk
Though the business is growing day-by-day, the competition associated with it is also
increasing. In order to stand in this competitive environment, business should depend
upon technologies. E-commerce and E-business have increasingly become a
necessary component of business strategy and strong catalyst for economic
development. The integration of information and communication technology in
business has revolutionized relationship with organizations and individuals.
The financial services industry has changed in ways that were inconceivable just five
Years ago. Driven by the power of internet, more intelligent hardware and software
and increased processing power, the financial markets appear to heading towards the
eventual establishment of a single, global electronic market place.
A market as defined by the economists refers to an institution or arrangements that
facilitate the purchase and sale of goods and services, and other things. A financial
market is an institution or an arrangement that facilitates the exchange of financial
Instruments, including deposits and loans, corporate stocks and bonds, government
Bonds and more exotic instruments. Capital market is one of the financial market
constituents which deal with long term Funds. The primary purpose of capital market
is to direct the flow of savings in to long Term investments. Capital markets play an
important role in the financial system by Promoting savings and investments, which
are vital for the development and growth of an Economy. It accelerates the pace of
economic development. The primary capital market Helps government and industrial
concerns in raising funds by facilitating the issue of various kinds of securities. The
secondary market provides liquidity to the outstanding/existing securities. Stock
exchanges contribute in a huge measure to the growth and expansion of national
Business and to the ultimate benefit and well being of the national economy and the
People. A specialized market place that facilitates the exchange of securities that
Institute of Management in Kerala. Kollam -1-

already exist is known as a stock exchange or stock market. It is also called a

secondary Market for securities. There are 24 stock exchanges in the country, with 21
of being Regional in nature.The act of buying and selling of securities on a stock
exchange is known as stock market trading. The stock market has undergone
structural information with the introduction of computerized online trading and
settlement procedures. In India, online stock trading facility is offered by capital
market intermediaries like ‘Share khan’, ‘Kotak Securities’, ‘ICICI Securities’,
‘Karvi’ etc. This e-business project on e-trading was conducted in Geojit BNP Paribas
Financial Services Limited, Kadappakkada, Kollam.
Geojit is a pioneer in all aspects of the financial services trade. Geojit is the first
financial service institution in India which provided its investors to trade in securities
through internet. At present, Geojit is having more than 400 branches all over the
world. Geojit is a member of NSE and BSE. In the year 2007 Geojit joined hands
with BNP Paribas, which is regarded as the sixth admired banking brand in the world.
Geojit changed their name as Geojit BNP Paribas Financial Serviced Limited.
OBJECTIVES OF THE STUDY
The objectives of this study are;
• To study the process of electronic trading in securities Market.
• To analyze the process, procedures and facilities of electronic trading in Geojit
BNP Paribas Financial Services Ltd., Kadappakkada,Kollam, .
METHODOLOGY
The study was descriptive in nature. Data was collected both from primary and
secondary sources.
Primary data;
1. Observation
2. Personal interview
Primary data was collected by conducting direct interviews with the manager and
staffs of Geojit BNP Paribas Financial Services Limited., Kadappakkada, Kollam.
Secondary data;
1. Internet
2. Journals like Geodata

SCOPE OF THE STUDY

The process of online trading is of great significance in the present scenario. A client
sitting in any part of the country would be able to trade using the internet as a medium
through brokers’ internet trading systems. At present, conventional securities
exchanges are using the internet primarily as the tool for disseminating a variety of
information to the public, and for advertising their products and services. In this
respect it is to be noted that stock exchanges in India have already set up their own
websites and provide market information. Though the investors will get Information’s
about individual security prices, trading volume, contract terms, trading mechanisms,
margin rules, exchange rules etc.In addition to communicating with the public,
exchanges and other infrastructure providers are using the internet for communicating
with their members. The study helped me to gain knowledge about e-trading.The
study will help to be a useful tool to other broking firms, investors and others
interested in stock market investment. The study will be beneficial for the company
and also helpful for further researchers.
LIMITATIONS
• The study was limited to a single unit of Geojit BNP Paribas.
• Investors’ perception was not analyzed.
• Most of the data were collected from interviews with the manager; hence, there is
a chance of bias

CHAPTERISATION
Chapter I: Introduction
Chapter II: E-business a theoretical perspective.
Chapter III: E-Business in the industry.
Chapter IV: E-Business in Geojit BNP Paribas Financial Services Limited,
Chapter V: E-Business in Geojit BNP Paribas Financial Services Limited,
Kadappakada, Kollam..
Chapter VI: Findings, Suggestion and Conclusion.

E-BUSINESS: A THEORETICAL
PERSPECTIVE
Electronic Business, commonly referred to as “e- Business” or “eBusiness” may be
defined as the utilization of information and communication technologies (ICT) in
support of all the activities of business. In e-commerce, Information and
Communications Technology (ICT) is used in inter-organizational transactions
(Transactions between and among firms / organizations) and in business – consumer
Transactions (transactions between firms/organizations and individuals). On the other
hand, in E-business ICT is used to enhance one’s business. It includes any process
that a Business organization conducts over a computer-mediated network.Commerce
constitutes the exchange of products and services between businesses, groups and
individuals and hence can be seen as one of the essential activities of any business.
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.
E-business 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. A more comprehensive definition of e-business is:
“The transformation of an organization’s process to deliver additional customer value
through the application of technologies, philosophies and computing paradigm of a
new economy”. Three primary processes are enhanced in e-business.
(a) Production processes, which include procurement, ordering and
replenishments of stocks; processing of payments, electronic links with
suppliers and production control processes, among others;
(b) Customer-focused processes, which include promotional and marketing
efforts, setting over the internet, processing of customer’s purchase orders and
payments, and customer support, among others; and

Internal management processes, which include employ services, training, internal

information-sharing, video-conferencing, and recruiting. Electronic applications
enhance information flow between production and sales forces to improve sales force
productivity. Work group communications and electronic publishing of internal
business information are likewise made for efficient.
E-COMMERCE
Electronic Commerce, commonly known as (electronic marketing) e-commerce or
e-commerce, consists of the buying and selling of products or services over electronic
systems such as the Internet and other computer networks. The amount of trade
conducted electronically has grown extraordinarily with widespread Internet usage.
The use of commerce is conducted by; spurring and drawing on innovations in
electronic funds transfer, supply chain management, Internet marketing, online
transaction processing, electronic data interchange (EDI) inventory management
systems and automated data collection systems. Modern electronic commerce
typically uses the World Wide Web at last at some point in the transaction’s lifecycle,
although it can encompass a wider range of technologies such as e-mail as well.
Electronic commerce that is conducted between businesses is referred to as business-
to-business or B2B. B2B can be open to all interested parties (e.g. commodity
exchange) or limited to specific, pre-qualified participants (private electronic market).
Electronic commerce that is conducted between businesses and consumers, on the
other hand, is referred to as business – to – consumer or B2C.
Electronic commerce is generally considered to be the sales aspect of
e-business. It also consists of the exchange of data to facilitate the financing and
payment aspects of the business transaction Electronic commerce “e-commerce”
covers the range of on-line business activities for products and services, both
business-to-business and business-to-consumer, though the Internet. E-commerce
breaks into two components:
Online Shopping
The technology infrastructure for the exchange of data and the purchase of a product
over the Internet. Online purchasing is a metaphor used in business-to-business e
commerce for providing customers with an online method of placing an order,
submitting a purchase order, or requesting a quote.

DIFFERENCE BETWEEN E-COMMERCE AND

E-BUSINESS
The prefix ‘e’-is used for electronic means electronic commerce and electronic
business. E-commerce and E-Business are two completely different terms but
unfortunately they are always used interchangeably by many of us. The reason behind
this lies in the meanings of “business” and “commerce” in English language. But
there is a difference between e-commerce and e-business. There are many people who
understand the subtle differences between the two and there had always been a debate
among these two groups about the differences and similarities between e-commerce
and e-business. E-commerce is a subset of e-business, and is an e-business but e-
business may or may not be e-commerce.
While an e-Commerce activity can be done by just with a website that accepts Credit /
Debit cards and similar on line purchase instruments, e-Business scope is lot more
than just buying and selling over the Internet, it goes into much depth of procedures
and cultures of an organization. It gives the site owner the power to connect directly
to the customers, vendors, employees, partners using the web.
E-business activities are result of much more organized effort and a whole some
system through internet.
The differences between the two are as follows:
1. E-Commerce is the subset of E-Business. The later one is a very broad concept
while the former one is just a small part of it.
2. Those activities which essentially involve monetary transactions are termed as “e-
commerce”. However, e-business is a much broader term. There are many other
things besides selling including but not limited to marketing, procurement of raw
materials or goods, customer education, looking for suppliers etc.
3. To sell online is e-commerce but to bring and retain customers and educate them
online about the product or service is e-business. Having a website to do it is not
sufficient. But, having a professionally built website loaded with latest
technologies to capture the attention of the visitor and win his/her appreciation is
required. When money is involved then the first thing which user looks for is
safety and security of his/her money. Having a website laden with such qualities is
important.

4. E-commerce has also been defined as a process covering outward processes that
touch customers, suppliers and external partners while
e-business covers internal processes such as inventory management, product
development, risk management, finance etc.
In all, e-commerce can be described as the use of the Internet and the web to transact
business. More formally, digitally enabled commercial transactions between and
among organizations and individuals. On the other hand, e-business can be described
as the digital enablement of transactions and process within a firm, involving
information systems under the control of the firm. Moreover, e-business applications
turn into e-commerce precisely when an exchange of value occurs.
ADVANTAGES OF E-BUSINESS
1. Removes Location and Availability Restrictions
Users need not be in the same physical location as an e-business and the exchange of
information and transactions may take place at any given time, twenty four hours a
day, seven days a week and from any location in the world with Internet access. A
physical location is restricted by size and limited to only those customers that can get
there, while an online store has a global marketplace with customers and information
seekers already waiting in line.
2. Reduces Time and Money Spent
In e-business, there is often a reduction in costs required to complete traditional
business procedures. Many of those same traditional business approaches can be
eliminated and replaced with electronic means, which are often easier to carry out as
well as easier on the pocketbook. For example, compare the cost of sending out 100
direct mailings (paper, postage, staff and all), to sending out a bulk e-mail. Also think
about the cost of paying rent at a physical location opposed to the cost of maintaining
an online site.
3. Heightens Customer Service
With e-Business customers receive highly customizable service, and communication
is often more effective. There is far more flexibility, availability and faster response
times with online support. For example, think about the speed of e-mail inquiries and
live chat as opposed to getting on the phone, especially when that business is closed
for the day. There is also a faster delivery cycle with online sales, helping strengthen
the customer/business relationship. The internet is a powerful channel for reaching

new markets and communicating information to customers and partners. Having a

better understanding of your customers will help to improve customer satisfaction.
4. Gives a Competitive Advantage
The internet opens up a brand new marketplace to businesses moving online.
Competition via the internet is growing as the internet itself grows and waiting too
long to move online may cause you to lose your place in line entirely. Easy access to
real time information is a primary benefit of the internet, enabling a company to give
more efficient and valid information and helping to gain the competitive advantage
over those that are not online.
Although there are risks associating with e-business, as with most business decisions,
there is also the risk associated with the inability to adapt to the changing times.
Change is inevitable in today’s marketplace and should be embraced with open arms
and open sites.
DISADVANTAGE OF E-BUSINESS
SECURITY PROBLEM
Although there have been considerable efforts to make the internet a safe place to do
business, computer or network problems of any sort can have disastrous consequences
on an investors portfolio. If the market is moving rapidly and a trade takes longer time
than that is actually needed, a stock can quickly change from being a profitable
acquisition to a huge loss. Things such as viruses could mean losing the site or
affecting customer’s computers while on website. Hackers, viruses and worms can
also render a company’s website unable to accept trades, isolating the customer and
preventing him from accessing his portfolio.
INVESTING ALONE
The lack of a safety net makes the online traders to loose a substantial amount of
money that they have invested, as novice investors pay more attention to short term
benefits. Long term investment requires discipline, one of the reasons why traditional
investing firms such as Merril Lynch, Paine Webber or Salomon Smith spend
considerable time and effort to research the securities that the invest in.
SUBSETS OF E-BUSINESS
E-Business can be conducted using the web, the internet, intranets, extranets or some
combination of these. Application can be divided into three categories:

(i) Internal Business Systems

• Customer relationship management
• Enterprise resource planning
• Document management systems
• Human resources management
(ii) Enterprise communication and collaboration
• VoIP
• Content management system
• E-mail
• Voice mail
• Web conferencing
• Digital work flows
• Digital work flows (or business process management)
(iii) E-commerce B2B or B2C
• Internet Shop
• Supply chain management
• Online marketing.
• Offline marketing
MODELS
When Organizations go online, they have to decide which e-business models best suit
their goals. A business model is defined as the organization of product, service and
information flows, and the source of revenues and benefits for suppliers and
customers. The concept of e-business model is the same but used in the online
presence. Following is the list of currently used e-business models:
• E-shops
• E-commerce
• E-procurement
• E-auctions
• Virtual Communities
• Collaboration Platforms
• Third-party marketplaces
Institute of Management in Kerala. Kollam - 10 -

• Value-chain Integrators
• Value-chain Service Providers
• Information Brokerage
• Telecommunication
E-shops
Online shopping is the process consumers go through to purchase products or services
over the Internet. An online shop, e-shop, e-store, internet shop, webshop or online
store evokes the physical analogy of buying products or services at a bricks-and-
mortar retailer or in a shopping mall. It is an electronic commerce application used for
business-to-business electronic commerce (B2B) or business-to-consumer electronic
commerce (B2C). Online shopping is popular mainly because of its speed and ease of
use.
E-commerce
Electronic commerce consists of buying and selling of products or services over
electronic systems such as the internet and other computer networks. The amount of
trade conducted electronically has grown extraordinarily with widespread internet
usage. The use of commerce is conducted in this way, spurring and drawing on
innovations in electronic funds transfer, supply chain management, Internet
marketing, online transaction processing, electronic data interchange (EDI), inventory
management systems, and automated data collection systems.
E-procurement
E-procurement (Electronic procurement) is either the business-to-business or
Business-to-Customer purchase and ale of supplies and services through the Internet
as well as other information and networking systems, such as electronic data
interchange (EDI) and Enterprise Resource Planning (ERP). E-procurement software
may make it possible to automate some buying and selling.
E-auctions
A reverse auction (also called procurement auction, e-auction, sourcing event, e-
sourcing) is a tool used in industrial business-to-business procurement. It is a type of
auction in which the role of the buyer and seller reversed, with the primary objective
to drive purchase prices downward. In an ordinary auction (also known as a forward

auction), buyers compete to obtain a good or service. In a reverse auction, sellers

compete to obtain business.
Virtual communities
A virtual community, e-community or online community is a group of people that
primarily interact via communication media such as letters, telephone, email or
Usenet rather than face to face. If the mechanism is a computer network, it is called an
online community. Virtual and online communities have also become a supplemental
form of communication between people who know each other primarily in real life.
Collaboration platforms
An emerging category of computer software, collaboration platforms are unified
electronic platforms that support synchronous and asynchronous communication
though a variety of devices and channels. Collaboration platforms offer a set of
software components and software services that enable individuals to find each other
and the information they need and to be able to communicate and work together to
achieve common business goals.
Third-party market places
Amazon marketplace (i.e: Third party Marketplace) is Amazon.com’s fixed price
online marketplace that allows sellers to survey their goods alongside Amazon’s
offerings. Buyers can buy new and used items sold directly by a third party through
Amazon.com using Amazon Marketplace. This concept is similar to eBay’s
successful half.com.
Value-chain service providers
The virtual value chain, created by John sviokla and Jeffrey Rayport, is a business
model for the information services industry. This value chain begins with the content
supplied by the provider, which is then distributed and supported by the information
infrastructure, and then the context provider supplies actual customer interaction. It
differs from the physical value chain of manufacturing/sales of traditional companies.
RELEVANT COMPONENTS OF AN E-BUSINESS MODEL
An e-business model must have;
(a) A shared digital business infrastructure, including digital production and
distribution technologies, which will allow business participants to create and
utilize network economies of scale and scope.

(b) A sophisticated model for operations, including integrated value chains- both
supply chains and buy chains.
(c) A e-business management model, consisting of business teams and/ or
partnerships; and
(d) Policy, regulatory and social systems-i.e., business policies consistent with e-
commerce laws, teleworking/virtual work. Distances learning, incentive
schemes, among others.
E-BUSINESS CLASSIFICATION
Roughly dividing the world into providers/producers and consumers/clients one can
classify e-businesses into the following categories.
 Business-to-business (B2B)
Business-to-business or “B2B” is a term commonly used to describe the transaction of
goods or services between businesses, as opposed to that between businesses and
other groups, such as transactions between business and individual consumers (B2C)
or business to public administration (B2G) transactions.
 Business-to-consumer (B2C)
Business-to-consumer describes activities of businesses serving end consumers with
products and/or services. An example of a B2C transaction would be a person buying
a pair of shoes from a retailer. The transaction that led to the shoes being available for
purchase, that is the purchase of the leather, laces, rubber, etc. as well as the sale of
the shoe from the shoemaker to the retailer would be considered (B2B) transactions.
 Business-to-employee (B2E)
Business-to-employee (B2E) electronic uses an intrabusiness network which allows
companies to provide products and/or services to their employees. Typically,
companies use B2E networks to automate employee-related corporate processes.
 Business-to-government (B2G)
Business-to-government (B2G) e-commerce (B2G) networks allow businesses to bid
on government RFPs in a reverse auction fashion. Public sector organizations (PSO’s)
post tenders in the form of RFP’s, RFI’s, RFQ’s etc. and suppliers respond to them.
 Government-to-Business (G2B)

Government-to-business is the online non-commercial interaction between local and

central government and the commercial business sector, rather than private
individuals (G2C).
 Government-to-Government (G2G)
Government-to-government (G2G) is the online non-commercial interaction between
Government organizations, departments, and authorities and other Government
organizations, departments and authorities. It’s use is common in the UK, along with
G2C, the online non-commercial interaction of local and central Government and
private individuals, and G2B the online non-commercial interaction of local and
central Government and commercial business sector.
 Government-to-Citizen (G2C)
Government-to-citizen is the online non-commercial interaction between local and
central government and private individuals, rather than the commercial business
sector G2B. For example, Government sector become visibly open to the public
domain via a Web portal. Thus making public services and information accessible to
all. One such web portal is Government Gateway.
 Consumer-to-Consumer (C2C)
Consumer-to-consumer (C2C) electronic commerce involves the electronically-
facilitated transactions between consumers through some third party. A common
example is the online auction, in which a consumer posts an item for sale and other
consumers bid to purchase it; the third party generally charges a flat flee or
commission. The sites are only intermediaries, just there to match consumers. They
do not have to check quality of the products being offered.
 Consumer-to-Business (C2B)
Consumer-to-business (C2B) is an electronic commerce business model in which
consumers (individuals) offer products and services to companies and the companies
pay them. This business model is a complete reversal of traditional business model
where a company offers goods and services to consumers.

E-BUSINESS IN THE INDUSTRY

The history of e-trading began in 1983, when a doctor in Michigan placed the first
online trade using E-TRADE technology. What began with a single click over 16
years ago has now taken the world by storm. The concept was visualized by Bill
Porter, a physicist and inventor with more than a dozen patents to his credit, who
provided online quotes and trading services to Fidelity, Charles Schwab, and Quick &
Reilly.
E-trading has become a way of investing in the developed world and is soon catching
on in developing countries too. With online trading you can fix your investment
choice and the just click the mouse to place your order, pay the amount due, get your
account statement, and the delivery of your shares in to your Demat account.
INDIAN STOCK BROKING INDUSTRY
Over the last several decades, the decline in the trade barriers resulting from the
GATT agreements, the emergence of large trade blocks such as the European Union
(EU), NAFTA, ASEAN, etc. and substantial reduction in transportation costs have
significantly altered the international competitive environment. The securities makes
worldwide have gone through a domestic change, reflecting the above trend. Now,
economies are not only affected by domestic changes but also the changes taking
place all over the world either directly or indirectly. Changes in the major markets
around the world, either causes changes in other securities markets directly or give a
cue to the other markets of the changes to come in the near future.
Indian markets are slowly coming in line with the international markets, due to the
efforts of SEBI and individual exchanges. The starting of rolling settlement, Internet
trading, increasing circuit filters, huge increase in volumes are all signs of the Indian
market coming in line with the more developed markets such as those of the US, UK,
Japan, Germany and many Asian giants. So it is important that Indian brokers also

keep in tune with and take signals from the international markets because that’s the
only way they can brace themselves for the future.
History has shown that the price of shares and other assets is important part of the
dynamic of economic activity, and can influence or be an indicator of social mood.
Rising share prices, for instance, tend to be associated with increased business
investment and vice versa. Share price also affect the wealth of household and their
consumption. Therefore, central banks tend to keep any eye on the control and
behavior of the stock market and, in general, on the smooth operation of financial
system function. Financial stability is the main factor of central bank.
INTERNET BROKING
Offline trading means loads of tiring paper work after each and every trade, but not
anymore. Whether you are investing in shares or IPO’s at online, the site works for
you by providing you much more convenience. For instance, when you trade on the
site, your broking account, bank account, and Demat account is linked electronically.
Theirs is a lot more to internet broking that gives you the winning edge as an investor.
SEBI Committee has approved the use of Internet as an Order Routing System (ORS)
for communicating clients’ orders to the exchanges through brokers. ORS enables
investors to place orders with his broker and have control over the information and
quotes and to hit the quote on an – on-line basis. Once the broker’s system receives
the order, it checks the authenticity of the client electronically and then routes the
order to the appropriate exchange for execution. On execution of the order, it is
confirmed on real time basis. Investor receives reports on margin requirement,
payments and delivery obligations through the system. His ledger and portfolio
account get updated online.
NSE launched internet trading in early February 2000. It is the first stock exchange in
the country to provide web – based access to investors to trade directly on the
exchange. The orders originating from the PCs of the investors are routed through the
Internet to the trading terminals of the designated brokers with whom they are
connected and further to the exchange for trade execution. Soon after these orders get
matched and result into trades, the investors get confirmation about them on their PCs
through the same internet route.
STOCK BROKERS

Introduction
A broker is an intermediary who arranges to buy and sell securities on behalf of
clients (the buyer and the seller).
According to Rule 2 (e) of SEBI (Stock Brokers and Sub-Brokers) Rules, 1992,
stockbroker means a member of a recognized stock exchange. No stockbroker is
allowed to buy, sell or deal in securities, unless he or she holds a certificate of
registration granted by SEBI. A stockbroker applies for registration to SEBI through a
stock exchange or stock exchanges of which he or she is admitted as a member. SEBI
may grant a certificate to a stock – broker (as per SEBI (Stock Brokers and Sub-
Brokers) Rules, 1992) subject to the conditions that:
a) He holds the membership of any stock exchange;
b) He shall abide by the rules, regulations and bye-laws of the stock exchange or
stock exchanges of which he is a member;
c) He shall pay the amount of fees for registration in the prescribed manner; and
d) He shall take adequate steps for redressal of grievances of the investors within one
month of the date of the receipt of the complaint and keep SEBI informed about
the number, nature and other particulars of the complaints.
While considering the application of an entity for grant of registration as a stock
broker, SEBI shall take into account the following namely, whether the stock broker
applicant –
a) Is eligible to be admitted as a member of a stock exchange.
b) Has the necessary infrastructure like adequate office space, equipment and man
power to effectively discharge his activities.
c) Has any past experience in the business of buying, selling or dealing in securities.
MARKET DESIGN
1. Primary Market
(a) Corporate Securities: The Disclosure and Investor Protection (DIP) guidelines
prescribe a substantial body of requirements for issuers/intermediaries, the broad
intention being to ensure that all concerned observe high standards of integrity and
fair dealing, comply with all the requirements with due skill, diligence and care, and
disclose the truth, whole truth and nothing but truth.

(b) Government Securities: The government securities market has witnessed

significant transformation in the 1990s. Government securities are now sold at market
related coupon rates through system of auctions instead of earlier practice of issue of
securities at very low rates just to reduce the cost of borrowing of the government.
2. Secondary Market
(a) Corporate Securities: The stock exchanges are the exclusive centre for trading
of securities. Though the era of operation/jurisdiction of an exchange is specific date
the time of its recognition, they have been allowed recently to set up trading terminals
anywhere in the country.
(b) Exchange Management: Most of the stock exchanges in the country are
organized as “mutual” which was considered beneficial in terms of tax benefits and
matters of compliance. The trading members, who provide brokering services, also
own, control and manage the exchanges the hands of three different sets of people.
This model eliminates conflict of interest and helps the exchange to pursue market
efficiency and investor interest aggressively.
(c) Membership: The trading platform of an exchange is accessible only to brokers.
The broker enters into trades in exchanges either on his own account or on behalf of
clients. No stock broker or sub-broker is allowed to buy, sell or deal in securities,
unless he or she holds a certificate of registration granted by SEBI.
(d) Demat Trading: The Depositories Act, 1996 was passed to proved for the
establishment of depositories in securities with the objective of ensuring free
transferability of securities with speed, accuracy and security by
(a) Making securities of public limited companies freely transferable subject to
certain exceptions;
(b) Dematerializing the securities in the depository mode
3. Derivatives Market
The trading index futures commences in June 2000, index options in June 2001, stock
options in July 2001 and stock futures in November 2001. Trading in interest rate
derivatives commenced June 2003. Interest Rate Futures Contracts are contracts based
on the list of underlying as may be specified by the Exchange and approved by SEBI

from time to time. Interest rate futures contracts are available on Notional T-bills,
Notional 10 year zero coupon bond and Notional 10 year coupon bearing bonds
stipulated by the Securities & exchange Board of India SEBI.
DIFFERENT ASPECTS OF TRADING

1. Initial Public Offer (IPO)
This is mainly concerned with primary market. It may target the public. When a
company may decide to issue their shares to public, they may firstly issue an IPO on
the primary market. The public have the opportunity to buy the shares from the
primary market. If any person is not got any share from the primary market, they may
also have the opportunity to buy it from the secondary market. All the relevant
information’s such number of shares; face value is specified in the form. The IPO
form may have 3 parts:-
1. The first may contain the details like Name of the applicant, Address, Pan No;
Bid options.
2. The second part may contain the banking details of the applicant such as Name,
Address, Bank A/c No:, Draft No: etc…..
3. The third part may contain the share details that may offered.
3. Contract Note
Contract note is a note which is prepared at the time of trade ie, buying and selling of
share. It may prepared by the particular stock broking company. A company contains
a secret code and the code may differ from customer to customer. The contract not is
mainly concerned with the trading details of secondary market. It may also contain the
following information.
1. Order number
2. Order time
3. Trade number
4. Trade time
5. Quantity bought

6. Quantity sold
7. Buy rate
8. Sell rate
9. Brokerage. Etc….
4. Delivery Instruction Slip (DI Slip)

ID slip is a document which is prepared for the clients on delivery of shares.
It may contain the relevant information about the delivery. It may have the validity or
value of a Cheque. It may contain the following items:
1. Client ID
2. Name of the client
3. Date of filling DI slip
4. The broker code
5. The broker / clearing member name
6. Market type for the respective stock exchange
7. Trading cycle code
8. Security identification number
9. The name of the company (share which you have sold)
10. No: of shares sold in figures
11. No: of shares sold in words.
12. The date on which you want the transfer to take place
13. The No: of Scrip’s you have filled up in the DIS.
14. Signature of the first holder.
15. Signature of the second holder.
16. Signature of the third holder.
17. Authorized signature in case of corporate A/c.
5. Applications for Opening an Account (Demat A/c or Depository A/c or
Pool A/c)
In order to participate in trading for a person, everyone has to create or open an
account namely demats account (D/P account). In ancient times, the share is in

physical form. In order to create the share in electronic form a Demat account is
created. All the trading transactions are done through electronically.
Any amount of shares that may purchase by a client is automatically transferred to
this pool A/c. After this the client may sell share at any time.
6. Dematerialization Request Form

When a Demat A/c is opened with more than one person, a separate form is used for
this purpose. There is a maximum of hree members and each of the members have
separate dematerialization form. Each client has his own client ID.
7. Rematerialisation Request Form
This form is used to transfer the electronic form of Share into physical form.
E-BUSINESS IN STOCK MARKET
ELECTRONIC STOCK EXCHANGES
A stock exchange is a market place where buyers and sellers of financial instruments
(securities) get together to conclude trades.
A stock market can be operated in basically two modes: quote driven and order
driven. In a quote driven market, so-called market always have to mention a bid and
an ask price for the securities they are trading. Potential buyers or sellers walk from
market maker to market maker, ask for quotes and make their choice. In an order
driven market, all participants feed their buy or sell orders into the price forming
process.
A stock market has to be attractive to both, to investors willing to spent money and to
issuers introducing securities to trade.
Liquid
A market is liquid when there is enough supply and demand to allow prices to be
determined consistently. Liquidity is basically a function of volume of trades.
Transparent
The most important way to ensure the fairness of a market is transparency. The price
forming process has to be traceable by all participants and bid and ask prices as well
as the trades have to be uniformly and instantly published.

Cost-effective
Transaction costs include all the commissions and operating costs which have to be
paid by a customer involved in a deal. These costs increase with the number of parties
involved (every broker, e.g., charges a significant fee), with the inefficiency of the
procedures (fax takes more expensive time than e-mail) and with the costs of the
involved systems.
To reach these objectives, more and more markets are moving away from the open
out-cry system, where traders physically meet around rings or in pits, to an electronic,
networked system. The access to this market from remote sites is not an issue
anymore. This means that traders can be anywhere in the world, which in turn leads to
increased liquidity and more consistent prices due to the centralized market place.
Also, the complete order and trade routing cycle from the customer via the broker to
the exchange and back via the clearing house (where the trade is executed) and the
broker to the customer can become paper-less, or, at least, less paper intensive.
Stock exchanges also provide facilities for the issue and redemption of securities as
well as other financial instruments and capital events including the payment of
income and dividends. The securities traded on a stock exchange include: shares
issued by companies, unit trusts and other pooled investments products and bonds. To
be able to trade a security on a certain stock exchange, it has to be listed there.
Usually there is a central location at least for recordkeeping, but trade is less and less
linked to such a physical place, as modern markets are electronic networks, which
gives them advantages of speed and cost of transactions. Trade on an exchange is by
members only.
There is usually no compulsion to issue stock via the stock exchange itself, nor must
stock be subsequently traded on the exchange. Such trading is said to be off exchange
over-the-counter. This is the usual way that bonds are traded. Increasingly, stock
exchanges are part of a global market for securities.
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.

The advent of the internet into the trading of securities has heralded the growth in the
methods of application of the new mode to develop new models, aimed at
encouraging market development in tandem with the rest of the computer literate
world. Method of trading in securities, brokers, dealers, prices, etc. are
communicated through the official websites of concerned stock exchange so as to
facilitate buying and selling of securities, is known as ‘Internet Stock trading’.
BACKGROUND
There are b broadly two types of trading in the financial markets:
(i) Business-to-business (B2B) trading, often conducted on exchanges, where
large investments bank and brokers trade directly with one another, transacting
large amounts of securities and
(ii) Business-to-client (B2C) trading, where retail (e.g., individuals buying and
selling relatively small amounts of stocks and shares) and institutional clients
(e.g., hedge funds, fund managers or insurance companies, trading for larger
amounts of securities) buy and sell from brokers or ‘dealers”, who act as
middle-men between the clients and the B2B markets.
Before the advent of e-trading, exchange trading would typically happen on the floor
of an exchange, where traders in brightly coloured jackets (to identify which firm they
worked for) would shout and gesticulate at on e another- a process known as “open
outcry” or “pit trading” (the exchange flows were often pit –shaped- circular, slopping
downwards to the centre, so that the traders could see one another). Open out cry
trading has largely been replaced by screen- based electronic trading, although a few
expectations remain.
Similarly, B2C trading traditionally happened over the phone and, while much of it
still goes, more brokers are allowing their clients to place orders using electronic
systems. Many retail (or “discount) brokers went online during the late 90’s and most
retail stock broking probably takes place over the web now.
FEATURES
A method of trading in securities whereby, it is possible for the investors to buy and
sell scrips through the internet is called though the internet is called ‘Internet trading’.
It is also called “On-line Trading”. The trading takes place under the ‘order Routing
System, (ORS)’ through registered stockbrokers on behalf of clients for execution of

trades on stock exchanges. The buy/sell orders can be executed on the investor’s
computers by the brokers filter. The Internet trading has been put in place under the
auspices of the SEBI. All the necessary safety and integrity measured are adhered to
in the transactions. For this purpose, the stock exchanges must ensure that the systems
used by brokers have provision for security, reliability and confidentially of data
through the use of technology.
IMPACT
The increase of e-trading has had some important implications:
• Reduced cost of transactions
By automating as much of the processes as possible, costs are brought down. The goal
is to reduce the incremental cost of traders to as close to zero as possible, so that
increased trading volumes don’t lead to significantly increased costs.
This has translated to lower costs for investors.
• Greater Liquidity
Electronic systems make it easier to allow different companies to trade with one
another, no matter where they are located. This leads to greater liquidity which
increases the efficiency of the markets.
Increased Transparency
E-trading has meant that the markets are less opaque. It’s easier to find out the price
of securities when that information is flowing around the world electronically.
• Tighter spreads
The “spread” on an instrument is the difference between the best buying selling prices
being quoted; it represents the profit being made by the market makers. The increased
liquidity, competition and transparency means that spread have tightened, especially
for commoditized, exchange traded instruments.
INTERNET TRADING – ALTERNATIVES
Worldwide, internet trading is usually one of the two forms:
Alternative Trading System (ATS)
ATS provides investors with additional proprietary electronic trading facilities for
securities that are traded principally on stock exchanges or other organized markets.
ATSs carryout price discovery functions. In addition, they also serve as order-

matching systems, besides serving as crossing systems using prices already

established in organized markets such as securities exchanges.
Order Routing System (ORS)
An effective ORS takes advantage of cutting edge technology to bring an
unprecedented level of efficiency to the order flow process. It involves the utilization
of technology to route orders of the investors to the brokers reducing any time lag
between their order and its execution on the exchange.
E BUSINESS IN GEOJIT BNP PARIBAS

FINANCIAL SERVICES LIMITED
Geojit BNP Paribas Financial Services (NSE: Geojit) is a retail stock broking
company in India with a strong presence in the Gulf. The company has over 21 years
experience in the Indian capital market, is listed on both the National and Bombay
Stock Exchanges and offers a wide repertoire of products. Geojit BNP Paribas is a
cash equity and derivatives broker with extensive experience in Portfolio
Management Services and the distribution of financial products: mutual funds and life
insurance.
HISTORY OF GEOJIT BNP PARIBAS FINANCIAL SERVICES LIMITED
Mr. C.J. George and Mr. Ranajit Kanjilal founded Geojit as a partnership firm in the
year 1987. In 1993, Mr. Ranajit Kanjilal retired from the firm and Geojit became the
proprietary concern of Mr. C .J. George. In 1994, it became a Public Limited
Company named Geojit Securities Ltd. The Kerala State Industrial Development
Corporation Ltd. (KSIDC), in 1995, became a co-promoter of Geojit by acquiring a
24% stake in the company, the only instance in India of a government entity
participating in the equity of a stock broking company. Geojit listed at The Stock
Exchange, Mumbai (BSE) in the year 2000. In 2003, the Company was renamed as
Geojit Financial Services Ltd. (GFSL). The board of the company consists of
professional directors; including a Kerala Government nominee with 2/3rd of the
board members being Independent Directors. With effect from July 2005, the
company is also listed at The National Stock Exchange OF India (NSE). Geojit is a

charter member of the Financial Planning Standards Board of India and is one of the
largest DP brokers in the country
Geojit BNP Paribas Financial Services is a retail stock broking company in India
with a strong presence in the Gulf. The company has over 21 years experience in the
Indian capital market, is listed on both the National and Bombay Stock Exchanges
and offers a wide repertoire of products. Geojit BNP Paribas is a cash equity and
derivatives broker with extensive experience in Portfolio Management Services and
the distribution of financial products: mutual funds and life insurance.
In March 2007, BNP Paribas had taken 27% stake in Geojit, which will eventually
increase to 34.35%. With this final step, BNP Paribas, one of the top three financial
institutions in the world by credit rating has become the largest shareholder in Geojit
Financial Services Ltd.With this take over Geojit has become Geojit BNP Paribas
Financial Services LTD in April 2009. Currently Geojit BNP Paribas has more than
500 branches, 4.7 lakhs clients and offers services in Equities, Futures and Options,
Mutual Funds, Life and General Insurance, Portfolio Management Services, Loans
against shares.
MILESTONES
• 1986
 Geojit became a member of the Cochin Stock Exchange (CSE).
• 1994
 The Kerala State Industrial Development Corporation (KSIDC), an arm of the
Government of Kerala, became a co-promoter of the company by acquiring 24%
equity stake in Geojit Financial Services Ltd., based on the evaluation report of
Ernst & Young. This is the only venture in India where a state owned
development institution is participating in the equity of a stock broking company.
Geojit becomes a corporate broking house.
• 1995
 Geojit came out with a small Initial Public Offer (IPO) of Rs.9.5 million,
which was oversubscribed by 15 times. Geojit’s issued and subscribed equity
capital increased to Rs.30 million and KSIDC’s equity stake comes down to 17%.

 Geojit becomes a member of the National Stock Exchange (NSE) and installed
its first trading terminal in Cochin, Kerala.
• 1996
 The company launched Portfolio Management Services after obtaining
required registration (Portfolio Management) from Securities Exchange Board of
India (SEBI).
• 1997
 Geojit became a Depository Participant under National Securities Depository
Limited (NSDL) and begins providing Depository Services through its branches.
• 1999
 Geojit became a member of The Stock Exchange, Mumbai (BSE) and
activated Bombay Online Terminals (BOLT) in different branches.
 The customer base of Geojit crossed the 50,000 mark.
• 2000
 Geojit became the first broking firm in the country to offer online trading
facility. The then SEBI Chairman, Mr. D.R.Mehta inaugurates the facility on 1st
February, 2000.
 Commenced Derivative Trading after obtaining registration as a Clearing and
Trading Member in NSE.
 Established the first Bank Gateway in the country for Internet Trading.
• 2001
 Geojit’s customer base crossed 100,000.
 Became India’s first DP to launch depository transactions through Internet.
 Established Joint ventures in the UAE for serving NRI clients.
 The Company issued bonus shares in the ratio of 1:1.
• 2002
 Geojit tied up with MetLife for the marketing and distribution of insurance
products across the country.
 The Company became the first online brokerage house to launch integrated
internet trading system for both cash and derivatives segments.

 Sheikh Sultan Bin Saud Al Oassemi, a member of the ruling family of

Sharjah, UAE, joined the Board of Directors of Geojit.
• 2003
 Geojit Commodities Limited, a wholly owned subsidiary of Geojit, became
member of National Multi-Commodity Exchange of India Ltd., national
Commodity & Derivatives Exchange Ltd., Multi Commodity Exchange and
launched Commodity Futures trading in rubber, pepper, gold, wheat and rice.
 Geojit Commodities Limited launched Online Futures trading in multiple
commodities namely, agri-commodities, precious metals like gold and silver,
other metals like steel, aluminium, etc. and energy futures namely, crude oil and
furnace oil.
 Geojit rose more than Rs.100 million through issue of preferential shares.
• 2005
 Barjeel Geojit Securities LLC became a member of Dubai Gold Commodity
Exchange.
 Customer base of Geojit crossed 250,000.
 Geojit’s reach spreads through a network of more than 300 branches.
 The company issued bonus shares in the ratio of 1:1.
 Geojit Credits, a subsidiary of Geojit Financial Services Ltd. Registers with
Reserve Bank of India as a Non-Banking Financial Company (NBFC).
 The Company got listed on National Stock Exchange of India Limited.
 The Company implemented Employees Stock Option Scheme.
 The Company opened a first of its kind- all women’s branch in Cochin.
• 2006
 Geojit relaunched Internet trading on Reuters TIB Mercury Platform.
• 2007
 On March 13, 2007 the formation of Geojit BNP Paribas Financial Services
Ltd., was announced in Mumbai and Paris. Through a preferential allotment, BNP
Paribas had taken 27% stake in Geojit, which will eventually increase to 34.35%.
With this final step, the French banking major has become the largest shareholder
in Geojit Financial Services Limited. BNP Paribas has one of the largest

international banking networks with significant presence in Asia and the United
states. With presence in more than 85 countries the bank has a headcount of more
than 1, 38,000.
• 2008
 Established BNP Paribas Securities India (P) Ltd.- a Joint Venture between
BNP Paribas S.A. and Geojit Financial Services for Institutional Broking.
 First brokerage to offer full Direct Market Access (DMA) execution in India
for institutional clients.
 Established Joint Venture in Saudi Arabia to Serve the Saudi National & NRI.
• 2009
 Launch of online Currency Derivatives trading.
 Renaming of Geojit into Geojit BNP Paribas in April 2009.
SERVICES @ SUBSIDIARIES
Geojit Technologies (P) Limited
Geojit Technologies a subsidiary of Geojit Commodities Ltd. Is engaged in providing
software solutions using open computing and web standards where possible. Geojit
technologies has strong domain expertise in financial services such as broking,
Depository, Derivatives, Banking, etc. It also offers development, procurement
assistance, implementation, guidance and support services.
Geojit Credits (P) Limited
Geojit Credits, a subsidiary of Geojit Financial Services Ltd. is registered with
Reserve Bank of India as an NBFC. It is engaged in the business of margin funding
for securities trading, loan against shares, loan against commodity futures, etc.
Barjeel Geojit Securities, LLC.
Barjeel Geojit Securities, LLC.Dubai, is Geojit BNP Paribas’s joint venture with the
Al Saud Group. The Al Saud Group which belongs to Sultan bin Saud Al Qassemi
has diversified interests in the areas of equity markets, real estate and trading. Barjeel
Geojit is a financial intermediary and the first Indian licensed brokerage company in
UAE. It has facilities for off-line and on-line trading in the Indian capital market and
also in US, European and Far-Eastern capital markets. It also provides Depository
services and deals in Indian and International Funds. An associate company, Global

Financial Investments S.A.O.G provides similar services in Oman. Aloula Geojit

Brokerage Company
Aloula Geojit Brokerage Company is Geojit BNP Paribas’s joint venture in Saudi
Arabia with the Al Johar Group. Saudi is home to one of the world’s largest NRI
populations. The company enables both the Saudi national and the NRI to invest in
the Saudi capital market. The NRI can also invest in the Indian stock market and in
Indian mutual funds. This joint venture makes Geojit BNP Paribas the first Indian
stock broking company to commence domestic retail operations in any foreign
country and the first foreign retail stock broker to start domestic retail operations in
the Kingdom. The company executed its first trade on the Saudi Stock Exchange on
November 10th.
PRODUCTS AND SERVICES
 Equities & Derivatives

 Internet Trading
 Portfolio Management Services
 Loans against Shares
 Mutual Funds
 Life Insurance
 Initial Public Offerings
The main products and services offered by Geojit BNP Paribas are;
1. EQUITY
Geojit BNP Paribas, a member of NSE and BSE, has a network of over 500 branches
in India and abroad, rendering quality equity trading services. Geojit BNP Paribas not
only has a strong offline presence but also provides automated online trading services.
Geojit BNP Paribas also provides a Call & Trade facility to its customers wherein
they can place and track their orders through our dedicated Call Centre Desk by
dialing the toll free number 1800-425-5501 or 91-484-2405822 (Standard Rates
Apply).
Geojit BNP Paribas's retail spread caters to the need of individual investors. Trading
in equities is made simple, safe and interesting with smart advice from the research

desk through daily SMS alerts, market pointers, periodical research reports, stock
recommendations and customer meets organized frequently.
2. Loan against Shares
Geojit Credits Pvt. Ltd., a subsidiary of Geojit BNP Paribas Financial Services Ltd,
registered as a Non-Banking Finance Company (NBFC) offers Loans against security
of shares. The facility is available to all customers of Geojit BNP Paribas Financial
Services Ltd.
Key Features of the Scheme:
1. Loan against Shares are extended against security of over 600 scripts traded on
BSE/ NSE
• Loan is provided against a minimum of two securities and minimum loan amount
is Rs.50000/-
• Loan up to 50% of the current market value of approved shares.
• Upper ceiling on quantum of loan shall be as determined by Geojit Credits Pvt.
Ltd on a case to case basis
• Speedy disbursal through RTGS / direct credit to the customer’s bank account /
cheque
• Hassle free processing and simple documentation
• Securities are to be transferred to Geojit Credits Pvt. Ltd
• The credit is provided as an overdraft facility for a period of One year at a time,
renewable by mutual consent.
• Loan can also be redeemed by instructing Geojit Credits Pvt. Ltd to sell the
securities.
• Loans are re-valued daily.
• Margin calls are made if the value of the securities fall by 10% which can be met
with either by redeeming the loan partially or placing additional securities
• Securities may be sold to ensure adequacy of stipulated margins without reference
to clients in case the margins are not maintained.
• 3. MUTUAL FUND
At Geojit BNP Paribas you get to choose the mutual fund schemes that best suit your
requirements from over 700 schemes offered by more than 33 different Asset
Management Companies. Our exclusive research will help you to make the right

choice from the various schemes on offer. Purchase and redemption of mutual funds
is now much simpler. All you need to do is to log online into our trading site.
Currently, online investment in mutual funds can be done through the following
mutual fund houses.
• SBI
• Franklin Templeton
• HDFC
4. PORTFOLIO MANAGEMENT SERVICE

Geojit BNP Paribas, a SEBI registered Portfolio Manager (Reg. No.INP000003203)
offers discretionary portfolio management services. Geojit BNP Paribas has a team of
experts who carefully take investment decisions based on the clients' objectives. The
Portfolio Management team has a successful track record of more than 10 years in the
capital market. The team has access to Geojit BNP Paribas's strong Equity Research,
and Fundamental & Technical Analysis
4. FUTURE AND OPTIONS
The National Stock Exchange and Mumbai Stock Exchange 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 Features and
Options. Geojit BNP Paribas provides all the facilities to the clients to trade in Futures
and Options. There are three types of Members in the Futures and Options Segment:
Trading Members are only eligible to trade; their trades are settled by the Clearing
Members.
Trading cum clearing members are members who are eligible to trade and also settle
trades on their own behalf and also settle on behalf of other trading members.
Self Clearing Members are those who trade and settle only their own trades Geojit
BNP Paribas Financial Services Ltd is trading cum clearing member at NSE.
5. DEPOSITORY SERVICES
Geojit BNP Paribas is a depository participant of NSDL. Investors can open demat
accounts with NSDL through Geojit. One can approach the nearest branch of Geojit
for opening an account. Agreements charges along with Annual Maintenance Charge
(AMC) are collected upfront while opening an account. It takes two to three days to

open a demat account. Upon activation of the demat account, a Welcome letter is sent
to the customer along with the Delivery Instruction Slip book.
DP facilities offered by Geojit

 De-materialization: Customer can convert their physical shares into
electronic form by surrendering the shares for dematerialization at the Geojit
branch.
 Re-materialization: Re-materialization enables the customer to convert the
dematerialized shares into physical form.
 Repurchase: This ability helps the customer to submit the units of open-
ended Mutual Funds in case of re-purchase.
 Pledge: Customer can pledge securities to avail a loan.
 Transfer: Customer can transfer securities from one demat account to another.
 IPOs: In case customer have applied for an IPO and receive an allotment then
the securities are transferred directly to their demat account. The same applies for
bonus and rights issues.
 Speed-e: if the customer registers for Speed-e services, then transfer instructions
can be placed online over the internet to pre-notified Clearing members Pool a/c.
This does away with the need to submit a physical delivery instruction slip.
 Internet Services: If the customer have access to Internet then they can register
with Geojit BNP Paribas to view their demat account over the Internet. This is
very beneficial as they can avail of a host of services at no extra cost. The
customer will be able to view their holdings, reports, and ledger and will have free
access to Geojit BNP Paribas’s research reports at any time.
1. DISTRIBUTION
Geojit BNP Paribas undertakes the distribution of variety financial instruments such
as mutual funds, bonds, life insurance products, fixed deposits etc. the wealth centre
team understands the universe of investment options, analyzes the risk and return
from this option and recommends investment options to clients to help them achieve
their financial goals.Geojit BNP Paribas has a tie up with all the Mutual Funds across
the country. Geojit BNP Paribas offers life insurance products of the following life
insurance companies:

 MetLife India Life Insurance Company

 LIC of India
 ICICI Prudential
Geojit BNP Paribas also helps its customers in investing in 8% RBI taxable bonds,
Capital gain and bonds (Sec 54 EC bonds), fixed deposits (KPFC, KTDFC) etc.
through its tie-up with the required organizations.
7. RESEARCH
Geojit BNP Paribas a team of exports who track the markets and related events very
closely. Sophisticated tools are used for technical analysis and research to offer
recommendations, technical analysis and research reports. Each day Geojit BNP
Paribas Research team brings to table information that helps you profit from it.
• Daily Market View: Technical Analysis- market, a daily report on markets
gives a clear picture on the expected market movements (NSE and BSE). It also
covers the key support and resistance levels. It also provides clues on market
direction and the expected profit booking levels.
• Daily Stock View: Technical Analysis- Stocks, a daily report on the stocks for the
day. These are prepared with “Departure Oscillators” tool that have a high degree
of accuracy on stock readings; which in turn helps investors, day traders, High Net
Worth Individual’s with stock ideas that may benefit them.
• F&O Analysis: F&O Analysis is a report that gives near 100% accurate reading
on both Futures and Options. Tools such as PC ratios, Open Internet and volatility
combined with RSI indicator are used for the purpose. It is helpful for day traders,
long-term holders and HNI clients.
• SMS: SMS alerts are sent to those who have registered for the service. These are
prepared with utmost care, ensuring that it is suitable for both the Bulls and the
Bears. It provides instantaneous buy/sell/hold recommendations purely on
technical. It also provides option strategies with the use of Implied/Historical
Volatility study. SMS is especially handy for Index Traders.
• Geo Data: Geo Data is a monthly research report covering most financial
instruments. It is quite comprehensive, and provides in-depth information on
stocks to watch out for, recommended Mutual Funds, performance of schemes,
Futures and Options update and a review of the commodities markets.

E-TRADING OF GEOJIT BNP

PARIBAS FINANCIAL SERVICES
LIMITED, KADAPPAKKADA,
KOLLAM
ONLINE INVESTMENT OPTIONS
Currently online investment is available for:
1. Capital market segment at NSE and BSE
2. F&O in NSE
3. IPO
4. View Demat Holdings Online
PRODUCT OFFERINGS

1. Multiple trading platforms to suit the needs of varied customers.

2. Orders can be placed over phone at the customer care centre.
3. Sell unsettled Positions (SUP) i.e., shares purchased can be sold prior to
receiving the same from the exchange.
4. Intra-day trading at NSE & BSE.
5. Auto square-off-this takes care that unwanted positions are not carried
forward.
6. Convert intra-day positions to delivery.
7. Funds receivable against the sell proceeds & intra-day profits available for
further purchases before exchange settlement.
8. Online trading during the Post Closing session @ NSE & BSE.
9. Offline order entry facility after close hours.
10. Standing instructions for transfer of credits in the ledger to customer bank
account.
Multiple Channels to Fund Trading Account

The essence of online trading is to take advantage of the price movements real-time
and this is possible only if there is sufficient balance in the trading account Geojit
BNP Paribas offers multiple channels to fund the trading account.
1. Online real-time fund transfer through multiple banks such as HDFC,
ICICI, etc.
2. Demand Draft- the buying power shall be increased if a DD is drawn from
the clients. Registered bank a/c and the same have to be faxed to customer
care dept.
3. Cheque- the benefit of cheques shall be given only on clearance of the same.
4. Maintain Running Trading Account- Its best to not give Standing Payout
instructions so that trading can take place to the extent of balance available in
the trading accounts.
Customer Constraints:
Online customers shall not be able to:
• Place orders at branches where BTT is not available.

• Link multiple demat accounts to the Online trading account.

• Place market orders to buy an options contract.
Charges in Online Trading
Brokerage: Cash Segment- delivery based 0.30%, intra-day 0.03%, Auction in case
of short delivery 0.25%, F&O- Rs.75-per lot.
Platform Charges- Applicable only if customer opts for paid option. Customer
should generate a minimum brokerage of Rs.6000/- & Rs.900/- per quarter for
Platinum and Gold platforms respectively else the differential is charged as Platform
charges. The platform shall be changed to either Gold or Silver in case customer opts
for of non-paid option in the event of not meeting the minimum brokerage criteria.
Customer Call Centre and Branch- Orders placed at these locations shall be levied
branch brokerage rates instead of online brokerage.
Physical Contract Notes- Customers to whom physical contract notes are sent if
contract notes sent vide email have bounced back or on customer request shall be
levied Rs.20/- per contract note.
SMS Market Alerts- Rs.100/- per month for those who have subscribed for the
service.
Interest on Delayed Payments- 24% p.a
Statutory Levies as applicable from time-to-time such as service tax, stamp duty,
STT, education cess, exchange turnover charges.
Opening Online Trading Account
• Complete the KYC.
• Sign up the mandatory Agreements as defined by Exchanges.
• Sign up the Agreements, Power of Attorney, terms & Conditions, Declarations,
etc. essential for availing the online trading facility.
• Submit the proof of identify, proof of address, proof of bank and demat account.
• Submit the Trading Account opening charges cheque/ demand draft.
Trading Platforms
There variants of Online Investment Platform are offered to customers by Geojit BNP
Paribas Financial Services Ltd.

1. Platinum Platform
The Platinum version act as a virtual dealer’s terminal providing live updates and
confirmation. The executable program is downloaded on the customer’s computer.
This is generally used by those who trade heavily intra-day and take very little
delivery. Therefore the need for real-time prices and the quick order entry real time
prices and the quick order entry real-time prices and the quick order entry like that of
a dealer terminal come handy like that of a dealer terminal come handy for such
customers.
2. Gold Platform
Gold version is a web-based solution. During market hours the stock prices are
refreshed seamlessly and the speed is mostly depending on the land width
connectivity used by the customer. In this, the trader will receive live quotes as the
rates are refreshed every second.
Since it is a web based system, one can login from anywhere in the world and take
advantage of the price movements.
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 Cash Market from 6.00 pm to 9.45 am on trading days
and at any time on holidays.`
STEPS IN ONLINE TRADING
1. ORDER PLACEMENI
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 enter in the trading platform after market hours are over. These are basically
known as Offline orders. 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. While placing an order you may choose
either, Buy or Sell.
i)Buy/Sell
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 hat you may not hold. it is basically placed by those who desire to
take advantage of intraday volatility without delivering shares in anticipation of a
price fall.
Buy to cover: To close a short sold position you may place this order.
ii) Product type
Cash and Margin are the two products on offer.
Select cash if you intend to take delivery of shares by blocking 100% 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 or funds. In case of margin orders,
only 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.
iii) Price condition
Here one can select the appropriate price condition. The orders are;
Market order
A market order means that the order will enter the exchange system at the best
available price. Generally the last traded price (LTP) is considered as the best
indicator of the price at which the order is likely to be executed. Market orders
generally get executed as soon as they are placed provided the scrip is liquid.
Limit Order
A limit order will be executed only at the price specified in the order or at a better
price. While there is a price protection, there is also a possibility that the order may
not be executed at all.
Stop loss order

A stop loss order is generally used when one has taken the position with the
expectation of making profits by reversing the positions when a favourable price is
reachred.However,as the markets may not necessarily behave as expected, a stop loss
Order comes handy. It allows the client to place an order, which he gets activate only
when the market price of the relevant security reaches or crosses a threshold price
specified by the investor in the form of 'Stop Loss Trigger Price’. When a stop loss
trigger price is specified in a limit order, the order becomes a conditional order this is
the market price of the stock crossing the specified trigger price, until then the order
remains passive (this is not eligible for execution)
Once the last traded price of the stock reaches or surpasses trigger price, the order
becomes activated (this is eligible for execution by being taken up in the matching
process of the exchange) and than on behaves like a normal limit order. It is used as a
tool to limit the maximum loss on a position.
In case of a buy or stop loss order, the trigger price should be greater than the last
trader price and the limit price should be less than the trade price.
iv) Time condition

Any order placed in the exchange is valued for a day. If the order remains executed it
expires automatically at the end of the trading day.
2. ORDER ENTRY
The steps to be followed in an order entry are as follows;
1. Select the desired Market and side (Buy or Sell)
2. Enter the symbol (or scrip or instrument) name for which the order is to be placed.
3. Select the price condition.(i.e,market or limit order)
4. Enter the order quantity, price in case of limit order
5. Enter the order quantity, price in case of limit order, expiry date, and in case of an
Options order you also needs to select OptionsType, Strike price.
6. Enter the advance options such as IOC, Stop Loss Trigger Price only if essential.
3. ORDER CONFIRMATION
When an order is submitted a confirmation screen is displayed that contains all the
essential parameters of the orders. This helps to verify if the order details are ok 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.
4. ORDER STATUS
Order status link in the menu bar 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, if there is a possibility that a
modification or cancellation request may be rejected if in the meanwhile the pending
order gets traded.
5. TRADE SUMMARY
Trade summary is a list of all trades that have been executed during the trading
session. It displays the complete trade information such as Exchange, security,
buy/sell, quantity, execution rate and more.
6. POSITIONS
Positions screen is basically divided into two parts. The top part displays information
on current buying power and the later portion displays positions held in various
positions held in various securities as per the selected filler. It displays positions under
NSE, BSE, in the respective 'Cash' or 'Margin' products, positions in F&O and in also
the total cost, market value and profit/loss on the total positions for each segment.
7. CONVERT TO DELIVERY
Shares bought under margin can be converted to delivery by selecting the option
'Convert to Delivery' provided in the position of trading screen.
8. FUND TRANSFER
The crux of online trading system is to enable customer transfer funds online real-
time from a wide range of banks. The institution has built payment gateways with
multiple banks such as HDFC Bank, ICICI, and Federal Bank Etc.
Transferring funds online is simple and secure. Click ‘More’ from the menu bar,
select 'Add funds' link, select the bank, (that is linked to the trading account), enter
amount, and submit the fund transfer request. Customer ID and password 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.
9. MONEY TRANSFER DETAILS

Fund Transfer Details is a list of all deposits and withdrawals. The transaction type 'D'
stands for deposit and 'W' for withdrawals.
FINDINGS
• Recent recession in financial sector affected Geojit BNB Paribas to certain limit.
• The advent of online trading has increased the customer base of Geojit BNB
Paribas.
• Transaction cost and time for trading has been reduced as a result of electronic
trading.
• Infrastructure facility of Geojit PNB Paribas is appreciably excellent.
• The services provided by Geojit BNB Paribas for electronic trading was very
much convenient to the clients.
• Geojit BNB Paribas has created acceptance in market by the timely adoption of
sophisticated technologies.

SUGGESTIONS
• Geojit BNP Paribas should conduct awareness programs targeting the public about
online trading.
• The infrastructure facility should be made adequate to cater the needs of
increasing customers.
• Geojit BNP Paribas should keep and maintain the reputation which generated
because of ethical business practises.
• Service of Economists can be Adopted to forecast the changes in the market,
which will reduce the risk level of its costumers

CONCLUSION
The availability and the power of computers have probably made more impact on the
securities business than in any other industry. The online trading system allows
customers to track the markets by setting by their own market watch, receiving
research tips, news and many more features which enable the customers to take
informed decisions.
Investing in securities such as shares, debentures and bonds is profitable as well as
exciting. Geojit BNB Paribas is one of the leading stock broking institutions in India
which is now also providing the mutual fund trading through internet. The study was
conducted at Geojit BNP Paribas Financial Services Ltd., Kadappakkada, Kollam;
The main objective of the study was to know more about electronic trading and also

to analyze the online investment procedures adopted by Geojit BNP Paribas Financial
Services Ltd., Kadappakada, Kollam. The joining of Geojit with BNP Paribas is a
good opportunity for Geojit to reach the unexplored corners of the globe.

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E Trading of securities in Geojit BNP Paribas Financial Services Limited Kadappakada

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already exist is known as a stock exchange or stock market. It is also called a

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SCOPE OF THE STUDY

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Internal management processes, which include employ services, training, internal

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DIFFERENCE BETWEEN E-COMMERCE AND

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new markets and communicating information to customers and partners. Having a

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(i) Internal Business Systems

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auction), buyers compete to obtain a good or service. In a reverse auction, sellers

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Government-to-business is the online non-commercial interaction between local and

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E-BUSINESS IN THE INDUSTRY

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(b) Government Securities: The government securities market has witnessed

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DIFFERENT ASPECTS OF TRADING

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4. Delivery Instruction Slip (DI Slip)

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6. Dematerialization Request Form

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matching systems, besides serving as crossing systems using prices already

E BUSINESS IN GEOJIT BNP PARIBAS

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 Sheikh Sultan Bin Saud Al Oassemi, a member of the ruling family of

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Financial Investments S.A.O.G provides similar services in Oman. Aloula Geojit

 Equities & Derivatives

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4. PORTFOLIO MANAGEMENT SERVICE

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DP facilities offered by Geojit

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 MetLife India Life Insurance Company

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E-TRADING OF GEOJIT BNP

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1. Multiple trading platforms to suit the needs of varied customers.

Multiple Channels to Fund Trading Account

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• Link multiple demat accounts to the Online trading account.

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