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Development Credit Bank Ltd.Project Report OnRevival And Relaunch of Smart Trade Online Trading PlatformUNDER THE GUIDANCE OF Mr.Pankaj Sood Vice President Head-Retail Liabilities Development Credit Bank SUBMITTED BY Amey Bhonslay PGDM-Finance ACADEMIC YEAR 2009-11N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH MIRA ROAD (EAST), MUMBAI-401104Revival and Renewal of Smart Trade Online Trading Platform 1Development Credit Bank Ltd.AcknowledgementI take this opportunity to express my deep and sincere gratitude to Mr. Pankaj Sood, Vice President-Retail Liabilities Product DCB for his valuable inspiration and encouragement in implementing this project. It is because of his support that I could synchronize the efforts in converting the manifold features of the project. I would also like to thank Mr. Pradeep Kumar for his constant support and guidance throughout the making of the project. I would also like to extend my gratitude to Development Credit Bank Ltd. for assigning this Project as a Summer Intern. It helped me to understand the Retail Banking and the Online Trading Industry. Moreover to understand the DCBs Online Trading platform (DCB Smart Trade) on a whole and various features and benefits attach to it. Date: 29th June 2010Revival and Renewal of Smart Trade Online Trading Platform 2Development Credit Bank Ltd.Letter of TransmittalDear Sir, As per your directions, I have completed research on the Revival And Relaunch of Smart Trade Online Trading Platform. The report is based on the careful study and comparison of the various Online trading platforms and Demat services provided in the industry. The project was carried from 28th April 2010 to 30th June 2010.The complete methodology and conclusions derived on the basis of the comparison is described in the report. I believe you will find the results mentioned in the report to be interesting and certainly useful. Sincerely, Amey Bhonslay NLDIMSRRevival and Renewal of Smart Trade Online Trading Platform 3Development Credit Bank Ltd.Executive SummaryThe report gives a brief analysis of the financial services sector of India. It, especially, gives in-depth analysis of the financial services called demat and online trading facility provided by DCB along with various financial organizations in India. These include both types of online trading companies one is the banking online trading companies which are banks having their own DP and Online platform and the other is non-banking trading organizations providing these services. The report starts with giving a brief introduction about the various financial services provided by various types of financial organizations in India. It also gives some important statistics about the financial services sector of India, present status in India and reasons for the growth prospects of the financial services sector in India. The report gives brief introduction about the requisition for opening both demat and online trading accounts. It also gives information about the dematerialization, its need, process, benefits and parties involved. It also gives information about the online securities trading process in India and also about their benefits. An important mention of the dematerialization parties like depository and the depository participant is also made. It also gives information about the online stock trading and settlement of shares done in India. The report gives an In-depth insight into the various online trading platforms and depository services provided by DCBs competitors in the industry on the basis of the Cost Structure, Current Product Proposition and the Various features and additional services provided by them vis--vis DCB. From the point of view of finance student, the report gives information about the working of Online trading industry, the different participants of the online trading industry, how it is being regulated and how online trading is importance and beneficial to retail customers at large. Finally, the report gives the list of findings that differentiates DCBs Smart Trade with Online trading and DP services provided by its competitors. At the end there are some suggestions and recommendations made that can be taken into consideration by DCB to make the relaunch of Smart Trade a success. Revival and Renewal of Smart Trade Online Trading Platform 4Development Credit Bank Ltd.Project Justification:The project undertaken mainly to help DCB revive its Online trading business which will help them to provide their existing customers with additional services along with other Core Banking Solutions and to attract new prospects so as to help provide all financial services under one roof and become the best neighborhood bank in the regions they are operating. It also helped me to get an overview of growth and development of online trading in India since its inception in the year 2000. Due to subprime mortgage crisis in year 2008 NASDAQ and S&P 500, two major stock exchange of the world entered into the bearish market. it also affected the stock market all over the world including India. Now with investors confidence slowly returning in capital markets, it is the challenge for firms providing Broking and DP services to improve on their margins. The project helped me to analyze various firms providing broking services and help DCB to restructure their online trading business. As per the title suggest the project report has been prepared with a view to help Development Credit Bank (DCB) in revival and relaunch of its Online Trading Platform.Revival and Renewal of Smart Trade Online Trading Platform 5Development Credit Bank Ltd.Table of Contents Sr. No.1 2 3 4 5 6 7ParticularsIntroduction to Stock Market Online Stock Trading Demat Account Depository & Depository Participant (DP) About Development Credit Bank DCB-A Historical Perspective Online Trading Platforms I. HSBC InvestDirect II. ShareKhan III. Geojit BNP Paribas IV. Axis Bank Online Trading V. Motilal Oswal VI. SBI Online Trading VII. Religare Securities VIII. SMC SecuritiesPg. No.7 11 16 17 22 23 25 25 29 32 35 36 39 40 42 48 65 69 728 9 10 11Comparative Analysis DCB Smart Trade Recommendations & Conclusion BibliographyRevival and Renewal of Smart Trade Online Trading Platform 6Development Credit Bank Ltd.Introduction To Stock Markets and Emergence of Online Trading in IndiaThe emergence of stock market can be traced back to 1830. In Bombay, business passed in the shares of banks like the commercial bank, the chartered mercantile bank, the chartered bank, the oriental bank and the old bank of Bombay and shares of cotton presses. In Calcutta, Englishman reported the quotations of 4%, 5%, and 6% loans of East India Company as well as the shares of the bank of Bengal in 1836. This list was a further broadened in 1839 when the Calcutta newspaper printed the quotations of banks like union bank and Agra bank. It also quoted the prices of business ventures like the Bengal bonded warehouse, the Docking Company and the storm tug company. Between 1840 and 1850, only half a dozen brokers existed for the limited business. But during the share mania of 1860-65, the number of brokers increased considerably. By 1860, the number of brokers was about 60 and during the exciting period of the American Civil war, their number increased to about 200 to 250. The end of American Civil war brought disillusionment and many failures and the brokers decreased in number and prosperity. It was in those troublesome times between 1868 and 1875 that brokers organized an informal association and finally as recited in the Indenture constituting the Articles of Association of the Exchange. On or about 9th day of July, 1875, a few native brokers doing brokerage business in shares and stocks resolved upon forming in Bombay an association for protecting the character, status and interest of native share and stock brokers and providing a hall or building for the use of the members of such association. As a meeting held in the broker Hall on the 5th day of February, 1887, it was resolved to execute a formal deal of association and to constitute the first managing committee and to appoint the first trustees. Accordingly, the Articles of Association of the Exchange and the Stock Exchange was formally established in Bombay on 3rd day of December, 1887. The Association is now known as The Stock Exchange. The entrance fee for new member was Re.1 and there were 318 members on the list, when the exchange was constituted. The numbers of members increased to 333 in 1896, 362 in Revival and Renewal of Smart Trade Online Trading Platform 7Development Credit Bank Ltd. 1916and 478 in 1920 and the entrance fee was raised to Rs.5 in 1877, Rs.1000 in 1896, Rs.2500 in 1916 and Rs. 48,000 in 1920. At present there are 23 recognized stock exchanges with about 6000 stock brokers. Organization structure of stock exchange varies. 14 stock exchanges are organized as public limited companies, 6 as companies limited by guarantee and 3 are non-profit voluntary organization. Of the total of 23, only 9 stock exchanges have been permanent recognition. Others have to seek recognition on annual basis. These exchange do not work of its own, rather, these are run by some persons and with the help of some persons and institution. All these are down as functionaries on stock exchange. These are 1.) Stockbrokers Stock brokers are the members of stock exchanges. These are the persons who buy, sell or deal in securities. A certificate of registration from SEBI is mandatory to act as a broker. SEBI can impose certain conditions while granting certificate of registrations. It is obligatory for the person to abide by the rules, regulations and the bylaw. Stock brokers are commission broker, floor broker, arbitrageur etc. 2.) Sub-broker A sub-broker acts as agent of stock broker. He is not a member of a stock exchange. He assists the investors in buying, selling or dealing in securities through stockbroker. The broker and sub-broker should enter into an agreement in which obligations of both should be specified. Sub-broker must be registered SEBI for a dealing in securities. For getting registered with SEBI, he must fulfill certain rules and regulation. 3.) Market Makers Market maker is a designated specialist in the specified securities. They make both bid and offer at the same time. A market maker has to abide by bye-laws, rules regulations of the concerned stock exchange. He is exempt from the margin requirements. As per the listing requirements, a company where the paid-up capital is Rs. 3 crore but not more than Rs. 5 crore and having a commercial operation for less than 2 years should appoint a market maker at the time of issue of securities.Revival and Renewal of Smart Trade Online Trading Platform 8Development Credit Bank Ltd. 4.) Portfolio consultants A combination of securities such as stocks, bonds and money market instruments is collectively called as portfolio. Whereas the portfolio consultants are the persons, firms or companies who advise, direct or undertake the management or administration of securities or funds on behalf of their clients. As the complexities and the Volume and Value of trade increased a need was felt to automate the entire process of stock market trading. This led to emergence of online exchanges, NASDAQ being the first completely online automated exchange to start operation in 1971. The emergence of online exchanges has facilitated faster transactions by providing online trading portals and brokerage houses ease and flexibility. The Internet has indeed opened up new opportunities for conducting the business. The worldwide stock exchanges has made a major shift from the traditional method of trading and now conduct a bulk of its business online through its brokers and partners. In the developed countries majorly all the exchange transactions are conducted online. The trend took off slowly in India and the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) two of the largest exchanges in India have been conducting online trade successfully for some time. The Indian exchanges and brokering houses have been very slow in moving their transactions online and the major reason has been the lot government regulations. The initial delay was due to laying down the specifications for creating Closed User Groups (CUGs). This issue was resolved between the Department of Telecommunications (DoT) and the Finance Ministry around 1998. The NSE and BSE are among the largest exchanges in the country handling very large daily trading volumes, support large amounts of data traffic, and have a very large nationwide network. The trading volume in year 2000 was huge with the average daily turnover in the capital markets segment at NSE is around Rs 2300 crore and in the derivatives segment, around Rs 1300 crore. The average daily traffic volume was around one million trades per day in the capital markets segment and around 50,000 trades per day in the derivatives segment and there were around 13,000 registered users in both segments and an average of around 9500 users is logged in at a time. At BSE the average daily turnover in 2001-2002 (AprilRevival and Renewal of Smart Trade Online Trading Platform 9Development Credit Bank Ltd. March) was Rs 1244.10 crore and the number of average daily trades was Rs 5.17 lakh. The Average daily turnover in the cash markets alone on BSE and NSE together stood at Rs 22,038 crores in 2009 and the Average daily F&O turnover at the NSE was 2,104,045 contracts in 2009. Today the central computer located at the Exchange is connected to the workstations of the Brokers through satellite using Very Small Aperture Terminals (VSATs). Orders placed at the Brokers' workstations reach the central computer and are matched by the computer based on price and time priority. Both the exchanges have switched over from the open outcry trading system to a fully automated computerized mode of trading known as BOLT (BSE On Line Trading) and NEAT (National Exchange Automated Trading) System. It facilitates more efficient processing, automatic order matching, faster execution of trades and transparency. Any online exchange should always be-on, safe, secure, redundant and should have adequate backup & recovery processes. The Vice President of NSE-IT G.M Shenoy tells that the basic design objective of NSE was to provide fair, equal and transparent access across all NSE nationwide locations and to provide connectivity to the trading members as soon as possible. However, even now Online trading has not still grasped the market, but has done a very important amount of progress in the past years and the future of online trading is bright. That is why many new companies are coming into this form of business structure and the existing companies are changing to this new format besides offline and other traditional forms of business. With only a mere share of 10% online trading there is a much greater scope for online trading. There are two broad models in play in the online brokerage space Bank-backed firms Entrepreneur-floated firms. Bank-backed brokerages such as ICICIdirect and HDFC Securities have expanded on the basis of their brand name and the trust of investors in them. The integrated 3-in-1 accounts offered by these bank-backed brokerages help their parent bank by giving it accounts along Revival and Renewal of Smart Trade Online Trading Platform 10Development Credit Bank Ltd. with float income. In second case i.e. Entrepreneur-backed companies like Investsmart, Indiabulls, Sharekhan, Religare and IndiaInfoline have expanded by offering customers a mix of online and offline accounts, higher margin finance amounts and lower brokerage rates. Though the bank based has performed better but the latter have not lagged too far behind. The steep increase in trading at the stock markets is one reason why online trading has developed over conventional offline brokerage firms. Conventional method struggled with unfavorable economies. Staff cost is just one example of it. As the markets opens for 335 minutes a day one dealer can at best execute 500 trades in a day while online company like ICICI direct executes 150,000-200,000 trades a day on the National Stock Exchange alone accounting for 3-4% of NSE trades of 5 million a day. It would require a large amount of dealers to service this demand. Besides the salary costs it would also demand huge expenses in real estate and support systems. The offline model has got a downfall in the form of lower bandwidth and IT costs and the cost of bandwidth has fallen to one-eighth of what it was in 2000 giving online broking an advantage especially in the case of lower-volume retail investors. In 2004, 30% of volumes on the NSE comes from this and it gone up to 50% in year 2008-2009 providing explosive growth for online broking in India. Online Stock Trading (OST): Online Stock Market Trading is an internet based stock trading facility. Investor can trade shares through a website without any manual intervention from the stock broker. In the case of OST, these online stock trading companies are stock brokers for the investor. They are registered with one or more stock exchanges. Mostly Online trading websites in India trades in BSE and NSE. Online stock trading is very old concept for big institutions who trade through private networks owned by Reuter's Instinet and a system called Posit since 1969. Online trading is a technology which integrates trading account with clients depository account and bank account to bring you the comfort of hassle free trading. It provides a wealth Revival and Renewal of Smart Trade Online Trading Platform 11Development Credit Bank Ltd. of information, analysis and tools that enable anyone to take more informed decisions. There no paper work involve as all transaction records are online and statements available in digital form. One can invest anytime and from anywhere as per convenience even at night after the market is closed. Online trading allows one to invest across different asset classes like equity shares, mutual funds and IPOs. It provides an up-to-date information and analysis in an investor friendly format, from some of the best information providers in their respective field. An individual using the online facility can place their equity order and receive order conformation during peak hours. Also a dedicated customer care cell is provided to online trading account customers so that their queries and problems are solved. With the help of online trading account client can do trading by the process of buying and selling of shares. Depending on broker may result in delay of buying and selling of shares which may in turn result in huge loss or less profit. Online share trading helps account holder to execute their own trades at any time because they are observing every movements of share market right in front of your computer screen. With the help of internet client can aware of government news, companys announcements and corporate declaration etc. During markets hours which is not practical for to the broker to provide. Problems occur during online share trading is disconnection of internet connection or connection may get slow, computer problem, electricity disconnection or other problem which are beyond control. This may result in disconnection from share market. ADVANTAGES OF ONLINE TRADING Internet trading commissions are clearly posted on the websites of the various services, and are typically a fixed rate charge, depending upon the type of security being traded and the size of trade. In theory, therefore, an Interest investor always knows what commission he is being charged on each trade. Internet investors can take as much time as they would like to take prior to placing a trade order. Similarly the online investor likely does not have to worry that his broker is making unauthorized trades. Since there is no individual broker making a commission, the only person who is authorized to trace in a the account is the actual investor. Furthermore, the Internet investor can never become a victim of excessive trading (where for the broker) since the investor maintains total control over the number of transactions which Revival and Renewal of Smart Trade Online Trading Platform 12Development Credit Bank Ltd. take place in the account. They can also check the status of their orders either through e-mail or through the interface that it cannot be accessed by a third party. Some options are usually given to users such as to link their bank account, Demat accounts and brokerage accounts into a single interface. A single window is also there for all exchanges and a single screen is there for the complete order routing mechanism. 1. Provides with the Freedom of Information The Internet provides a new sense of controlling our financial future as the amount of investment information available online is truly outstanding. An investor can Know the price of any stock he desires at any point time on the internet. An investor can review the price history of any stock in chart format online An investor can follow in-depth the events happening in the market Helps an investor in receiving a wealth of free commentary and analysis about stock markets in the global economy Helps an investor to conduct an extensive financial research of any company he desires He may also consult with other investors online present around the world Some online stock broking companies provide real-time stock quotes, daily roundups of the stock market, expert commentary, and a deep community of fellow investors. 2. Provides Control to Investors Money When an investor wants to buy or sell stock he no longer need to call his broker on the phone thus helping in the execution of the order instantly on the internet. 3. Provides access to the market Through the sophisticated information streams, dedicated trading platforms and Sophisticated tools the investor can access the markets which provide more agility in buying and selling stocks. Revival and Renewal of Smart Trade Online Trading Platform 13Development Credit Bank Ltd.4. Ensures the best price for investors Some companies like Investsmart (IL&FS)specialize in the techniques which offers the best price deals for the buy and sell orders of the investors and traders providing the high level of transparency by displaying of information relating to the specific stocks and company profiles which helps in getting the best quote for the orders. 5. Online trading offers greater transparency Online trading offers the investors with greater transparency by providing with an audit trail. The process involves a complete integrated electronic chain starting from order placement, to clearing and settlement and finally ending with a credit into the depository account of the investor. All these stages are inspected which brings the transparency into the system. 6. Provides hassle free trading Online trading provides an integration of the bank account, trading account and demat accounts, which leads to easy and paperless trading for the client. 7. Online trading allows instant trade execution Online transactions helps in the quick execution of the entire trading transaction right from logging to the traders site and to the settlement of the bank account in a very short period of time. 8. It provides a level playing field Trading online gives even the smallest retail investor access to information which was earlier available only to the big traders. It has provided with a level playing field for all investors in the securities market. 9. Online trading reduces the settlement risk This method of trading reduces the settlement risk for the investor as when a short sell order is played the orders are squared off at the specified cut-off time and are not allowed to be Revival and Renewal of Smart Trade Online Trading Platform 14Development Credit Bank Ltd. carried forward.10. Provides live financial news & analysis The online sites also provide live terminals which provide streaming news to give investor the latest financial information as it occurs. 11. Online help desk Some companies provide online help desk an investor cancan contact the Tele Trading Executives from the Tele Trading team during and after market hours and can clarify questions. 12. Instant order trade confirmations Through online trading every trade is confirmed immediately and investor receives an onscreen confirmation following every trade with full details for the investors records which avoids costly errors that would have been discovered when it is too late. 13. Keeps Information Secure As per the guideline provided by SEBI every effort has to be made to keep the investors account and personal information secure by use of encryption technology and updated security technology to advanced fraud prevention measures. DISADVANTAGES OF ONLINE TRADING In online terminal, investor cant get customized expert advice, whereas in offline the broker gives suggestions according to investors strategy (i.e. short term or long-term) Brokerage is high compared to offline. Privacy is less due to hacking scandals Transactional errors due to technical problems To use the online trading services an investor has to register with an online trading portal like Revival and Renewal of Smart Trade Online Trading Platform 15Development Credit Bank Ltd. Investsmart.in, ICICIdirect.com, Religare, motilaloswal.com and sharekhan.com and many companies like that and investor gets into an agreement with the firm to trade in different securities according to the terms and conditions given on the agreement. As the servers of the online trading portal are connected all the time to the stock exchanges and designated banks the order processing is done in real time and investors can also have updates on the trading. The various players are offering their customers different facilities and have adopted different strategies to attract and retain investors. Basically when a firm gives facilities to its customers to trade Online in financial and commodities markets, it involves synchronizing that individual customers 3 accounts. 1) Saving Bank Account. 2) Demat Account. 3) Trading Account. The basic requirement for trading Online is having a bank Saving account in ones name. The customer has a choice of choosing with whom he has to open his Demat and/or Trading account. He can open it with separate service providers or with the same service providers.Demat AccountDemat refers to a dematerialised account. Though the company is under obligation to offer the securities in both physical and demat mode, you have the choice to receive the securities in either mode. If you wish to have securities in demat mode, you need to indicate the name of the depository and also of the depository participant with whom you have depository account in your application. It is, however desirable that you hold securities in demat form as physical securities carry the risk of being fake, forged or stolen. Just as you have to open an account with a bank if you want to save your money, make cheque payments etc, Nowadays, you need to open a demat account if you want to buy or sell stocks. So it is just like a bank account where actual money is replaced by shares. You have to Revival and Renewal of Smart Trade Online Trading Platform 16Development Credit Bank Ltd. approach the DPs (remember, they are like bank branches), to open your demat account. Let's say your portfolio of shares looks like this: 150 of Infosys, 50 of Wipro, 200 of HLL and 100 of ACC. All these will show in your demat account. So you don't have to possess any physical certificates showing that you own these shares. They are all held electronically in your account. As you buy and sell the shares, they are adjusted in your account. Just like a bank passbook or statement, the DP will provide you with periodic statements of holdings and transactions. Every financial institution providing the demat-cum-trading facilities should have a Depository Participant (DP) unit. Every financial institution providing the demat-cum-trading facilities should be recognized by the following government organizations: Bombay Stock Exchange (BSE) National Stock Exchange (NSE) Securities and Exchange Board of India (SEBI) Central Depository Services (India) Limited (CDSL) National securities depository limited (NSDL) What is a depository? The depository is provided by the depository system. A depository is a facility for holding securities, which enables securities transactions to be processed by book entry. To achieve the above mentioned purpose, the depository may immobilize the securities or dematerialize them (so that they exist only as electronic records). India has chosen the dematerialization route. In India, a depository is an organization, which holds the beneficial owner's securities in electronic form, through a registered Depository Participant (DP). A depository functions somewhat similar to a commercial bank. To avail of the services offered by a depository, the investor has to open an account with it through a registered DP. For performing the above tasks, two depositories viz., National Securities Depository Limited (NSDL) & Central Depository Services Limited (CDSL) have come up.Revival and Renewal of Smart Trade Online Trading Platform 17Development Credit Bank Ltd. National Securities Depository Limited (NSDL): It is a joint venture of: 1. IDBI (Industrial Development Bank of India Limited); 2. NSE (National Stock Exchange); and 3. UTI (Unit Trust of India). NSDL is the first depository to be set up in India. It was registered by SEBI on June 7, 1996. NSDL has established a national infrastructure of international standards that handles most of the securities held and settled in dematerialized form in the Indian capital market, since its inception. NSDL aims at ensuring the safety and soundness of Indian marketplaces by developing settlement solutions that increase efficiency, minimize risk and reduce total operating costs. As on May 23 2009, NSDL has about 9.2 million investor accounts in India. As on May 23, 2009, these accounts are serviced by NSDL through Depository Participants which provide services from more than 9,200 offices/locations in 914 towns/cities in India. As on May 23 2009, NSDL has custody of securities worth USD 870 Billion. Central Depository Services Limited (CDSL) CDSL has been promoted by Bombay Stock Exchange (BSE) and Bank of India (BoI), State Bank of India (SBI), Bank of Baroda (BoB), HDFC Bank, Standard Chartered Bank, Union Bank of India (UBI), and Centurion Bank. It was formed in February, 1999. All leading stock exchanges like the National Stock Exchange (NSE), Calcutta Stock Exchange (CSE), Delhi Stock Exchange (DSE), Ahmedabad Stock Exchange (ASE), etc., have established connectivity with CDSL. As at the end of Dec 2007, over 5000 issuers have admitted their securities (equities, bonds, debentures, and commercial papers), units of mutual funds, certificate of deposits etc. into the CDSL system. The balances in the investors account recorded and maintained with CDSL can be Revival and Renewal of Smart Trade Online Trading Platform 18Development Credit Bank Ltd. obtained through the DP. CDSL offers an efficient and instantaneous transfer of securities Both depositories have a network of Depository participants (DPs) which are further electronically connected to their clients. The DPs act as a link between the depositories and the clients. The Depository system to some extent works like the banking system. There is a central bank and the rules and regulations related to the working of all the commercial, foreign, co-operative and other types of banks are framed by the central bank. In order to do the daily transactions, the investors open an account with the associate banks, and not with the central one. Like an investor can have a bank account with more than one bank, similarly one can have more than one demat account. What is a Depository Participant (DP)? The depository has agents called as depository participants (DPs). A Depository Participant (DP) is the representative (agent) in the depository system to the customers, providing the link between the demat-cum-trading facilities providing company and the customers through the depository. The Depository Participant (DP) works similar to the brokers, who trade on behalf of the customers in and outside the Stock Exchange. The Depository Participant (DP) will maintain the securities, and the account balances of the customers, along with intimating to the customers about the status of their holding from time to time. According to SEBI guidelines, Financial Institutions like banks, custodians, stockbrokers etc. can become participants in the depository. A Depository Participant (DP) is one with whom the customers have to open a demat account to deal in securities in electronic form. While the depository can be compared to a bank, the Depository Participant (DP) is like a branch of bank with whom the customer can have a demat account. Revival and Renewal of Smart Trade Online Trading Platform 19Development Credit Bank Ltd. As a broker represents their investors, and can trade on their behalf either on the stock exchange or off-market. Similarly, a Depository Participant (DP) is the representative (agent) of the investor in the depository system providing the link between the Company and the client through the Depository. The clients Depository Participant (DP) will maintain his securities account balances and intimate the status of the holding from time to time. DP is one with whom a client needs to open an account to deal in electronic form. While the Depository can be compared to a Bank, DP is like a branch of a bank with which one can have an account. Therefore, DPs are authorized to maintain accounts of dematerialized shares. They help in instantaneous electronic transfer of shares held in Demat form through electronic book entry system. Recommendation Of SEBI The SEBI has also played an important role in the issue of the guidelines regarding online trading so that the chances of fraud and misrepresentation are minimized. The stock brokers which are being registered with Securities Exchange Board of India (SEBI) will have to apply to stock exchanges for a formal permission. The following conditions must be fulfilled The online trading company must have a minimum net worth of Rs 50 lakh The encryption technology should be there in the system used by the brokers to ensure the provision for confidentiality, security, justifiability and reliability of data .The user id, first level and second level password, automatic expiry of passwords at the end of a reasonable period. The brokers must maintain adequate back-up systems and data storage capacity which must be checked by the stock exchanges. SEBI has recently announced that to reduce the fraud cases each and every broking house has to give back the full amount of customer after each three month, they will have to show the zero balance of every customers account at the end of every 3 month The minimum qualification must be laid down by the stock exchange to ensure that the Revival and Renewal of Smart Trade Online Trading Platform 20Development Credit Bank Ltd. Persons hired by the brokers must have the proper qualification regarding trading so as to guide the clients and he can communicate regarding trading instructions. To ensure the authenticity and accuracy of data a certification agency must be appointed using the certification technologies when notified by the government or the SEBI. The better client and the broker relationship to be maintained. To determine the risk associated with the clients the brokers must have the have sufficient verifiable information about clients and the stock exchange must ensure it. The clients must be taken into an agreement stating about all the obligations and rights including the minimum service standards to be maintained by the service provider broker for services specified by SEBI/exchanges for Internet-based trading from time to time. The web site of the broker providing the online trading facility should contain information rules and regulations affecting client broker relationship, arbitration rules, investor protection rules, etc meant for investor protection. It should also provide and display prominently hyper link to the web site/page on the web site of the relevant stock exchange(s) displaying rules/ regulations/circulars. Ticker/quote/order book displayed on the web site of the broker should display the time stamp as well as the source of such information. An e-mail should be sent to he investor for the confirmation of his Order or trade. The limits of trading and exposure provided to the client must be set on system-based control and brokers and exchanges must ensure it. The limits must be predefined by the broker on the exposure and turnover of each client. The system of broker should be such that it is capable of assessing the risk of the client as soon as the order comes in. The system should inform the clients client the reports on margin requirements, payment and delivery obligations etc. As per the regulations the Contract Notes must be issued to clients within 24 hours of the trade execution. Cross trades of the clients will not be allowed with each other to the brokers using Internet based systems for routing client order and all orders must be offered to the market for matching. Revival and Renewal of Smart Trade Online Trading Platform 21Development Credit Bank Ltd. A separate working group has been set up to look into the surveillance and enforcement-related issues arising due to Internet-based securities trading. However, general anti-fraud provisions (SEBI Fraudulent and Unfair Trade Practices Regulations, 1995) will apply to all transactions involving securities or financial services, regardless of the medium.Development Credit BankAbout DCB A new generation private sector bank, Development Credit Bank (DCB) is the preferred banking services provider across 80 state-of-the-art branches across 10 states and two union territories. The Bank has recently launched several value added initiatives and intends to become one of the countrys preferred and profitable private sector banks, providing a comprehensive suite of best in class products for customers in Retail, SME and Corporate Banking market segments in chosen geographies. DCB has deep roots in India since its inception in the 1930s. Its promoter the Aga Khan Fund for Economic Development (AKFED) holds over 23% stake. AKFED is an international development agency dedicated to promoting entrepreneurship and building economically sound enterprises in the developing world. It had co-promoted HDFC in India in the late seventies. AKFED operates as a network of affiliates comprising 90 separate project companies. Employing over 30,000 people, it reported annual revenues in excess of US$1.5 billion. The Fund is active in 16 countries in the developing world. Vision Our vision is to be the most innovative and responsive neighbourhood community bank in India serving entrepreneurs, individuals and businesses. Values Treat Everyone with Dignity Respect Do What is Right Ethical Revival and Renewal of Smart Trade Online Trading Platform 22Development Credit Bank Ltd. Be Open & Transparent Fair Sense of Urgency, Passion & Energy Dynamic Go the Extra Mile & Find Solutions Stretch Improve Continuously Excellence Play as a Team, To Win Teamwork Support the Society - ContributeDCB - A Historical Perspective Built on over 78 years of trust, tradition and togetherness, DCB was converted into a Scheduled Commercial Bank on May 31, 1995, in the wake of Indias economic liberalization. It was the only co-operative bank, which successfully crossed over and thrived in the face of change. The Bank has a network of 80 state-of-the-art, customer friendly, and conveniently located branches across the states of Maharashtra, Gujarat, Andhra Pradesh, Karnataka, Delhi/ NCR, Rajasthan, Goa, Tamil Nadu, Haryana, West Bengal and the Union Territories of Daman & Diu and Dadra & Nagar Haveli. Spreading wings, with the wind beneath Under the able guidance of an experienced Board of Directors and the leadership of a dynamic senior management team DCB strategically aims to enhance its reach and spread, while introducing exciting new banking products for its customers. Seamless, flawless and timely service To adhere to its vision of becoming the gold standard in customer service in Indian banking, intensive training and service quality programs have been initiated with customer delight becoming the key focus of the Bank. This will become the lifeblood of DCB and act as its key differentiator. Not just a Bank, a Financial Supermarket DCB intends to offer an extensive range of products across its branches. Suitable variants of the basic products like savings and current accounts as well as innovative products such as the DCB Trio and Easy Business, keep DCB ahead of the pack. Demat Account and a range of investment products like mutual funds, insurance and bonds make the product offering complete. Revival and Renewal of Smart Trade Online Trading Platform 23Development Credit Bank Ltd. Close to its roots, yet flying high Since its inception, DCB has always taken an active interest in developing low-cost customer deposit products and providing for the needs of small and medium businesses in select regions. It continues to fulfill every consumer need with great enthusiasm. The Bank is also suitably equipped with the latest versions of Finacle from Infosys and Oracle to provide seamless service to its customers.A Bank for its people The pan-India employee teleconferences and introduction of performance-based incentives have already charged the existing work force. Given its reputation for being a non-hierarchical and dynamic organization, DCB is one of the chosen destinations for aspiring banking professionals. A grip on the future The Bank has an active and robust treasury, managing its interest rate risks and liquidity by providing an uninterrupted flow of funds, positioning the Bank for future growth. Latest Offering: DCB is planning to relaunch Smart Trade an Online trading platform so as to better cater to the investment needs of its existing and prospective customers. Basically when a firm gives facilities to its customers to trade Online in financial and commodities markets, it involves synchronizing that individual customers 3 accounts. 1) Saving Bank Account. 2) Demat Account. 3) Trading Account. The basic requirement for trading Online is having a bank Saving account in ones name. The customer has a choice of choosing with whom he has to open his Demat and/or Trading account. He can open it with separate service providers or with the same service providers. Today most of the banks provide online trading services to its customers as a part of its effort to provide customers all financial services under one roof. DCBs foray into online trading Revival and Renewal of Smart Trade Online Trading Platform 24Development Credit Bank Ltd. with Smart Trade Online trading platform (A Tie-Up with IIFL) shows the banks intention to towards becoming a one stop spot for all financial products.The part below gives a detail study of different organizations providing Demat and Trading facilities and the services they offer.Online trading platformsHSBC InvestDirect (Earlier ILFS Investmart) HSBC InvestDirect (India) Limited (HIL) is one of the India's leading financial services organizations providing varied range of services through its subsidiaries to Individual and Corporate customers. HIL is listed on the Bombay Stock Exchange Limited (BSE) and National Stock Exchange Limited (NSE). HSBC InvestDirect offers various services that include equity broking, wealth management, IPO distribution and portfolio management services.A unique integrated account, which integrates banking, broking, and demat accounts and Is facilitating the three type of trading product to its retail customer: SmartSTART SmartInvest is a browser-based system designed for customers who transact occasionally. It is ideal for investors who believe in the Buy and Hold approach towards investment in equities. A comprehensive trading service, which allows you to invest in equities and derivatives. SmartStart trading platform allows the flexibility of trading on any internet capable Revival and Renewal of Smart Trade Online Trading Platform 25Development Credit Bank Ltd. system, with access to both the NSE and BSE. SmartInvest sophisticated yet easy to use point and click order entry interface allows to react more quickly to the markets and make better decisions. FEATURES Trade on NSE & BSE Simple order entry for Equity & Derivatives Fully Customizable display User friendly Get Quote screen Integrated Accounts (Bank. Demat & Trading) Live order status Track your orders real-time Dynamic buying power Works behind a Proxy Back office accessRevival and Renewal of Smart Trade Online Trading Platform 26Development Credit Bank Ltd. Smart Invest: SmartInvest is a browser-based system designed for customers who transact occasionally. It is ideal for investors who believe in the Buy and Hold approach towards investment in equities. SmartInvest's capability as a browser-based trading platform gives the benefit of real-time streaming data with the flexibility of trading on any Internet capable system. With access to both the NSE & BSE, the user is in the driver's seat when routing his order to the price on either of the exchanges. SmartInvest sophisticated yet easy to use point and click order entry interface allows you to react more quickly and make better decisions.Features Instant loading Works behind a proxy Live Streaming Quotes Multiple watch lists Single order form for Cash and FnO Revival and Renewal of Smart Trade Online Trading Platform 27Development Credit Bank Ltd. Point and Click order entry Hot Key functions Market Depth window Back Office accessSmartTRADE: SmartTrade is an EXE based desktop software designed for active traders who transact frequently to capture favorable short-term price movements. It is designed and built from the ground up to address the needs of active traders. SmartTrade makes the most of state-of theart technology to deliver power, speed and reliability. Through an easy-to-use interface, users are provided with the same tools and advantages that the professionals enjoy.Features Revival and Renewal of Smart Trade Online Trading Platform 28Development Credit Bank Ltd. Fully Customizable display Dynamic Charts with Indicators EOD Charts Advanced Alert capabilities Track your orders real time Real time position updates Dynamic buying power Lock terminal optionShareKhan Sharekhan is online stock trading company of SSKI group, provider of India-based investment banking and corporate finance service. Sharekhan is one of the largest stock broking houses in the country. S.S. Kantilal Ishwarlal Securities limited (SSKI) has been among Indias leading broking houses for more than a century. Sharekhan's equity related services include trade execution on BSE, NSE, derivatives, commodities, depository services, online trading and investment advice. Trading is available in BSE and NSE. Along with sharekhan.com website, Sharekhan has around 510 offices (share shops) in 170 cities around the country. Share khan has one of the best state of art web portal providing fundamental and statistical information across equity, mutual funds and IPOs. You can surf across 5,500 companies for in-depth information, details about more than 1,500 mutual fund schemes and IPO data. You can also access other market related details such as board meetings, result announcements, FII transactions, buying/selling by mutual funds and much more. Sharekhan Classic account Allows investors to buy and sell stocks online along with the following features like multiple watch lists, Integrated Banking, demat and digital contracts, Real-time portfolio tracking with Revival and Renewal of Smart Trade Online Trading Platform 29Development Credit Bank Ltd. price alerts and Instant credit & transfer. Online trading account for investing in Equities and Derivatives Free trading through Phone (Dial-n-Trade) Two dedicated numbers for placing your orders with your cellphone or landline. Automatic funds transfer with phone banking (for Citibank and HDFC bank customers) Simple and Secure Interactive Voice Response based system for authentication Get the trusted, professional advice of our telebrokers After hours order placement facility between 8.00 am and 9.30 am Integration of: Online trading + Bank + Demat account Instant cash transfer facility against purchase & sale of shares Investments and trade confirmations by e-mail Single screen interface for cash and derivativesRevival and Renewal of Smart Trade Online Trading Platform 30Development Credit Bank Ltd. ShareKhan Trade Tiger This accounts for active traders who trade frequently during the day's trading session. Following are few popular features of SpeedTrade account. Single screen interface for cash and derivatives Real-time streaming quotes with Instant order Execution & Confirmation Hot keys similar to a traditional broker terminal Alerts and reminders Back-up facility to place trades on Direct Phone linesFeatures Freedom from paperwork Instant credit and money transfer Trade from any net enabled PC Revival and Renewal of Smart Trade Online Trading Platform 31Development Credit Bank Ltd. After hour orders Online orders on the phone Timely advice and research reports Real-time Portfolio tracking Share khan has also started providing its customers the service of Buying Selling mutual fund NAV including the facilities of Switch In and Switch Out. This Facility is available to customers using either of its Two platforms (Trade Tiger and Classic Account).Geojit BNP Paribas Geojit BNP Paribas today is a leading retail financial services company in India with a growing presence in the Middle East. The company rides on its rich experience in the capital market to offer its clients a wide portfolio of savings and investment solutions. The gamut of valueadded products and services offered ranges from equities and derivatives to Mutual Funds, Life & General Insurance and third party Fixed Deposits. The needs of over 495,000 clients are met via multichannel services - a countrywide network of over 500 offices, phone service, dedicated Customer Care centre and the Internet. Geojit BNP Paribas has membership in, and is listed on, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). In 2007, global banking major BNP Paribas joined the companys other major shareholders and took a stake to become the single largest shareholder. A strong brand identity and extensive industry knowledge coupled with BNP Paribas international expertise gives Geojit BNP Paribas a competitive advantage. Their Online platforms are: '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. Revival and Renewal of Smart Trade Online Trading Platform 32Development Credit Bank Ltd. 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 Place your order through the channel of your convenience i.e. Internet or at your Branch or via the Call Center.FLIP Lite FLIP Lite is a browser based version and will help to trade even if you have a low bandwidth connection. Key Features of Lite: Light Speed Easy FLIP Lite is designed to work on mobile devices Revival and Renewal of Smart Trade Online Trading Platform 33Development Credit Bank Ltd.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. Key Features of Gold Platform: 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 Analyze multiple Market Depth view Optimized to work on low bandwidth Works behind proxy & firewall Real-time Research & Trade Execution notification via pop-up Online fund transfer facility After market hours, orders can also be placed in both the Exchanges Online investment of Mutual Funds and IPOs 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 clients computer. This platform is FREE if brokerage criteria is met else clients can opt for the refundable fee option. Key Features All the features of Gold are available in Platinum Platinum is similar to a dealer terminal Flexibility to customize screen layout and setting Revival and Renewal of Smart Trade Online Trading Platform 34Development Credit Bank Ltd. Professional, Classic, Customized Market Watches 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 IPOs Intraday & EOD Sophisticated studies such as Technical indicators can be performed by using appropriate parameters FLIP Platinum users have access to the Gold Platform also.Axis Bank Online Trading Axis Bank in alliance with Geojit Financial Services offers an online trading account with facilities to trade from the comfort of your home or office either through the internet or the phone. This service provides you with an integrated savings bank account, demat account and an online trading account to give you a convenient and paper free trading experience. As an axis bank online trading customer you would also have the flexibility to get an insight to a complete range of corporate information, reuters news and research tools which would help you to take timely investment decisions.Revival and Renewal of Smart Trade Online Trading Platform 35Development Credit Bank Ltd.Motilal Oswal Motilal Oswal securities ltd. through its online MyBroker platform gives an opportunity to be your own broker with complete research support from most which helps you to make right decision at right time. You can choose your trading a/c which suits your trading habits & preference and trade anywhere, anytime. Buying and selling is as easy as click of a button. MyBroker - Motilal Oswals online trading terminal has been designed to provide an investment experience like never before. Comprehensive range of financial products will cater to almost every financial need of yours. A brief description of our product features have been mentioned below: Equities/derivatives Advanced online platform replete with top class features to help you place trades at the click of a few buttons. Seamless execution of trades is made possible since our 3-in-1 account links your trading, demat and bank account. View NSE/BSE live streaming quotes on a single screen. Choice of transferring funds online through multiple banks. Entirely customizable multiple market watch facility to help you track stocks on a regular basis. Instant order/trade confirmation facility to give you a similar trading experience as exchange trading terminal. Simplified net position screens to squareoff all your open positions. Access to latest research reports like daily market diary, derivative diary, and pivot Revival and Renewal of Smart Trade Online Trading Platform 36Development Credit Bank Ltd. points on your screen. Get stock recommendations during live market hours on your trading screen. 128-bit SSL encryption technology to ensure the highest security of your online transactions. Initial Public Offerings (IPOs) Apply for ipos online without filling up physical forms or writing out cheques Check your ipo order status details. Modify/cancel your bids online. Transfer funds online to your IPO account. Access the latest information and news relating to ipos Mutual funds Apply online in the best of schemes with minimum effort Check your mf order status and also modify or cancel your orders View your mf holdings with details of nav and percentage wise composition of your portfolio. Transfer funds online to your mf account Get the latest news and information in the world of mutual funds Avail of top class research on various mutual funds Products offered Looking at the needs of the customers Motilal Oswal has categorized its products into three categories: MyBroker Exe Active Trader MyBroker Spectrum Active Investors MyBroker Easy Trade Retail InvestorsRevival and Renewal of Smart Trade Online Trading Platform 37Development Credit Bank Ltd.MyBroker EXE is a product specially made for the clients who are active into the market or daily trader this product is exe base and need to be installed. This product gives you a complete feel of broker terminal. Looking at the needs of active trader all the features are been incorporated. MyBroker Spectrum is the product for active investors. A comprehensive account with live streaming quotes and top class features to help you make instant transactions. This product is java based product so can be operated from any internet connected pc having sun java installed. MyBroker Easy Trade enables you to trade online on the NSE & BSE, NSE F&O, invest in IPO and Mutual Funds and access to all the research and transaction reports through our website. Revival and Renewal of Smart Trade Online Trading Platform 38Development Credit Bank Ltd. SBI Online Trading SBI has a Tie-Up with Motilal Oswal to provide Online trading services to its customersBenefits of Online trading Integrated 3 in 1 account 'Block' funds real time Speed and Safety Solution for all capital market needs Reuter news PhoneRevival and Renewal of Smart Trade Online Trading Platform 39Development Credit Bank Ltd.Religare Securities (Indusind Bank has a Tie-Up With Religare) Religare Securities ltd is a Ranbaxy promoter group company, is one of Indias largest andfastest growing integrated financial services institutions. The company offers a large and diverse bouquet of services ranging from equities, commodities, insurance broking, to wealth advisory, portfolio management services, personal finance services, investment banking and institutional broking services. Religares Retail network spreads across the length and breadth of the country with its presence through more than 900 locations across more than 300 cities and towns. Having spread itself fairly well across the country and with the promise of not resting on its laurels, it has also aggressively started eyeing global geographies. Unique features and benefits of trading through religare: Trade Reward: Trade rewards is a unique offering from religare that gives you dual benefits of hassle free investment experience online and an opportunity to earn while you invest with us. Zero Brokerage: Break the Shackles. Get freedom from brokerage and avail ZERO Brokerage on trades. Exposure Up To 20 Times On Your Margin: Allowing you the freedom to trade without hassles throughout the day without having to worry about your cash margin. You can get exposure (on cash segment) as high as 20 times for intraday trades. Of course conditions apply on above two. Interest on Cash Margin: Even while you are waiting to make your next trade or online investment, your unutilized cash does not lie idle with us. You earn interest on your unutilized cash margin.Revival and Renewal of Smart Trade Online Trading Platform 40Development Credit Bank Ltd. Platforms R-Ace (Basic): No software installation required, easily accessible on browser NSE Cash segment, NSE F&O and BSE on single platform R-Ace Lite (Advanced) : No software installation required, easily accessible on browser NSE Cash segment, NSE F&O and BSE on single platform Real-Time streaming quotes Hot Key functions for faster trading R-Ace Pro (Professional): Traders terminal on your desktop NSE Cash segment, NSE F&O and BSE on single platform Real-Time streaming quotes Technical charting (Intraday and EOD) Multiple watch list Advanced Hot-Key functions for faster trading Derivative chains Futures & Options calculator Brokerage detailsRevival and Renewal of Smart Trade Online Trading Platform 41Development Credit Bank Ltd.SMC: (PNB Has a Tie-Up with SMC to Provide Online Trading Account) SMC online is One Stop Financial Investment portal for all financial needs. Customers can trade online in equities, derivatives, currency futures, commodities, apply online for IPOs, and invest online in mutual funds. At SMC, client services always come first & thus, SMC always endeavor to offer latest online products, with State Of The Art technology, to serve better. SMC, gives its customers financial freedom backed by sound in-house research & excellent advisory capabilities. SMC online has a range of online investment products. Customers can access their account from anywhere using call-n-trade services. To provide clients better trading experience, SMC has designed trading products according to varying needs of customer as at SMC we understand that different people have different trading habits and preferences in capital markets. SMC Online Trading Edge Trade in equity, derivatives & commodities After market order (amo) facility available Live quotes Multiple payment gateways with reputed banks Online IPO Online mutual funds Excellent research support Competitive brokerages & charges Revival and Renewal of Smart Trade Online Trading Platform 42Development Credit Bank Ltd. Research reports on mail Stocks recommendations through sms Dedicated relationship manager Secured and user friendly website Online back office reports Dedicated customer care & support Use of latest technology for the best trading experience Access to quality information, research & statistics on the website Transparency SMC Select This trading platform is ideal for those investors who are new to securities trading. This platform is simple to use & is most suited to retail investors who are not frequent traders. It is most economical and convenient product for online trading and does not require any software installation. Features No software installation required Easily accessible on browser Trade on different exchanges on a single platform Online transfer of funds through multiple banks Online back office to track your investments Technical SMS alerts facility Latest news, market information and research reports on mail SMC Exclusive This account is ideal for active traders who transact frequently during days trading session to capitalize on Intra-day price movements. In this product, real time streaming quotes facility is available on browser interface.Revival and Renewal of Smart Trade Online Trading Platform 43Development Credit Bank Ltd. Features Easily accessible on browser No software installation required Live streaming quotes Trade on different exchanges on a single platform Multiple market watch facility Hot key functions for faster trading Online transfer of funds through multiple banks Online back office Online IPO & Mutual Fund Technical sms alerts facility available Latest news, market information and research reports on the website SMC Privilege This account is an application based privileged online trading product, which is meant for clients who are actively involved in the stock market and do the bulk trading. It offers comprehensive facilities on a single screen, similar to that of a brokers terminal, thus providing greater ease and time advantage, to the investors. Features Trading terminal on your desktop Real time streaming quotes Intraday charting Different exchanges on a single screen Fully customizable market watch Track multiple stocks on single screen Hot key functions for faster trading Security lock for better safety Online transfer of funds through multiple banks Online IPO & mutual fund Online back office Revival and Renewal of Smart Trade Online Trading Platform 44Development Credit Bank Ltd. Technical SMS alerts facility available Latest news, market information and research reports on mailAfter a thorough study of different online trading platforms it can concluded that most of the firms provide 3 different platforms to meet the different needs of the customers. A basic one for investors who transact occasionally and believe in holding securities The basic platform with add on features to investors who are likely to take their own investment decision and are likely be knowledgeable of the market and would like to study it before investing. EXE based desktop software designed for active traders who transact frequently to capture favorable short-term price movements. Some of the common features provided by all or most of these platforms are: Basic platform Access to both the NSE and BSE Simple order entry for equity & derivatives Fully customizable user friendly display View NSE/BSE live streaming quotes on a single screen. Integrated accounts (bank. Demat & trading) Live order status Real time order tracking Instant automatic funds transfer with phone banking Easy to use Apply online for IPO Revival and Renewal of Smart Trade Online Trading Platform 45Development Credit Bank Ltd. Apply and keep track of mutual fund investment Most of the broking houses also provide their customers investments.Advance platform Product for active investors Instant loading Customized multiple watch lists Hot key functions Market depth window Real-time configurable market watch with auto save functionality Tick by tick intraday charting Real-time research & trade execution notification Instant trade confirmation Online fund transfer facility After market hours, orders can also be placed in both the exchanges Access to latest research reports Professional platform EXE based desktop software designed for active traders Tools and advantages that the professionals enjoy Fully customizable display Dynamic charts with indicators EOD charts Advanced alert capabilities Revival and Renewal of Smart Trade Online Trading Platform 46Development Credit Bank Ltd. Single screen interface Alerts and reminders Similar to a dealer terminalThe next part deals with Pricing Strategy adopted by different competitors in the markets. Different firms adopt different pricing strategies for Delivery, Inter-Day and F&O. While some firms have a flat pricing strategy i.e. they levy brokerage as a certain percentage of the trading amount or they may charge customers at a different rates based on certain slabs where the percentage charged as brokerage reduces as the trading increases. Apart from the pricing strategies for Delivery, Inter-Day and F&O firms have adopted different strategies for Opening and Maintenance of Demat and Trading accounts like No Maintenance charge for first year, No account Opening charges, No Margin Money etc. so as to retain existing customers and attracting new ones. The firms also provide prepaid services to certain clients. This also shows the importance of pricing in online trading industries and is also a major reason for customers being confused as to whom to approach for opening trading and Demat accounts.Revival and Renewal of Smart Trade Online Trading Platform 47Development Credit Bank Ltd.D C B S m a rt T ra d e (a llia n c e w ith IIL F )AM C 2000 D e liv e ryV olum e *(R s .) B rok erage RateB ro k e ra g e ra te sB N P P a rib a sS h a re K h a nAM C 6000 AM C 18000< 1 0 lacs > 1 0 lac < 5 0 lac0.3 0 % 0.2 5 %> 5 0 lac < 1 cr > 1 cr < 2 cr > 2 cr0.2 0 % 0.1 5 % 0.1 0 %0.40% or 10 P ais0.2 5% or 5 P ais e 0 .20% or 4 e (M inim um ) (M inim um ) P ais e (M inim um )0.5 % or M in 5 P ais aIntra -da y V o lume s V olume *(Rs.) < 2 cr > 2 cr < 6 cr > 6 cr < 1 2 cr > 1 2 cr < 1 5 cr > 1 5 crB rok erage Rate0.0 3 % 0.0 3 % 0.0 2 % 0.0 2 % 0.0 1 %0 .07% or 5 P ais e 5% or 5 P ais e 0 .04% or 4 0.0 (M inim u m ) (M inim um ) P ais e (M inim um )0.05% or M in 5 P a is aF &O V o lu m e sV olume *(Rs.)B rok erage Rate< 9 cr > 9 cr < 1 8 cr > 1 8 cr < 27 cr > 2 7 cr < 36 cr > 3 6 cr75 65 50 40 30F u tu re s: 0 .07% F u tu re s: 0.05 % F u tu re s: or 1 P ais e or 1 P ais e 0 .04% or 1 (M inim u m ) (M inim um ) P ais e (M inim um ) O p ti o n s:2% O f O p tio n s: 1.5% of p tio n s: 1% o r O P rem ium or Rs . P rem iu m or R s . Rs . 50/9 0/- w hic hever is75 /- whic heve r is whic hever is h igh er high er h igh erF u ture s brok erag 0.05%, O ptions e b rok e rage (on prem iu m ) - 0.05 % or Rs .10 0 whic he ver is higherRevival and Renewal of Smart Trade Online Trading Platform 48Development Credit Bank Ltd.R s .2 0 p e r C o n tra c t o r 1 p a is a p e r s ha re w h ic h e v e r is hig he r s u b je c t to a m a x im u m o f 2 . 5 % p e r s h a re . In c a s e th e c o n tra c t n o te is d e liv e re d b y p o s t th e n R s .2 0 /- p e r C o n tra c t o r 5 p a is a p e r s h a re w h ic h e ve r is h igh e r s u b je c t to a m a x im u m o f 2 .5 % p e r s ha re . C re d it R e q u e s t C ha rge s R s .1 0 0 p e r re q u e s t F ee Structure for D epository Services - SecuritiesA c c o u n t O p e n in g C h a r g e s C u s t o d y C h a rg e sN il N ilR s . 5 5 5 / - fo r L ife t im e a c c o u n tN ILT ra n s a c tio n C h a r g e sA M a r k e t tr a d e sa ) F o r tr a n s a c ti o n th r o u geh itB (rsoakle s :) D b er C r e d it (p u rc h a s e )R s . 1 6 / - p e r t ra n s a c t io n if t h e d e l ive ry is t h ro u g h D IS o r P O A w it h o u t D C N R s 1 1 / - p e r t ra n s a c t io n if t h e d e l ive ry is t h ro u g h P O A / S p e e d -e w it h D C N N il0 . 0 4 % , M in im u m Rs. 15b ) F o r tr a n s a c t i o n th r o u g h o thbeitr (s raole se)r s : De b k C re d it (p u rc h a se ) B O ff M a r k e t T r a d e sR s 5 0 / - p e r t ra n s a c t io n N il0 . 0 2 % , M in im u m Rs. 15D e b it ( s a le s ) C re d i t R e j e c t i o n / fa i l s C h a r g e sR s . 1 5 / - p e r t ra n s a c t io n (if b o t h a c c o u n t s a r e w it h G e o jit ) R s . 5 0 / p e r t ra n s a c t io n fo r o t h e rs N il-P le d g e c h a rg e sP le d g e c re a t io n P le d g e c lo s u r e P le d g e in vo c a t io nR s . 5 0 / - p e r t ra n s a c t io n N il R s . 1 0 0 / - p e r t ra n s a c t io n0 . 0 2 % , m in im u m Rs. 15Revival and Renewal of Smart Trade Online Trading Platform 49Development Credit Bank Ltd.A n n u a l M a in te n a n c e C h a r g e sR s . 3 0 0 / - (E x is t in g C lie n t s ), D C N C lie n t s : R s . 2 5 0 / -( N o t A p p lic a b le in fi r s t F Y fo r n e w c l i e n t s ) R s . 2 5 0 /R s . 3 0 0 / - u p fr o n t o r R s . 3 0 0 / - p a y a b l e e q u a l l y i n 4 Q u a r t e r l y In s t a l l m e n t s o f R s .75 /- e a c h -R e s id e n t A c c o u n t sN e w C lie n t s C lo sin g C h a rg e sR s . 7 5 p e r q u a rte r, i. e . R s . 3 0 0 p e r annum R s. 100D e m a te r i a l iz a ti o n s C h a r g e sN il + c o u rie r c h a rg e s @ R s . 3 5 / -R s. 3 per c e r t i fi c a t e o r R s 1 5 p e r re q u e s t , w h ic h e ve r is Rs. 25 per c e r t i fi c a t e o f 0 . 1 2 % o f t h e va lu e o f t h e s e c u r it ie s , w h ic h e ve r is h ig h e r. R s . 2 5 p e r re q u e s tR e m a te r i a li z a tio n C h a r g e sR s . 1 0 fo r e v e r y h u n d r e d s e c u r i t i e s o r p a rt th e re o f ;} o r R s .1 0 p e r c e r t i fi c a t e , w h i c h e v e r i s h i g h e r } + c o u rie r c h a r g e s R s . 3 5 p e r s c ripC h a r g e s fo r R e q u e s ts to fr e e z e o r d e fr e e z e A c c o u n tA d d iti o n a l A c c o u n t S ta te m e n tsR s . 3 0 0 / - ( N o t A p p lic a b le in fir s t N R I C l ie n t s u s i n g e l e c t r o n ic c o m m u n ic a t i oF nY( D C aNr t)e r fo r N e w c lie n ts ) /q u N R I C l ie n t s n o t u s in g e l e c t r o n ic c o m m u n ic a t io ns . 1 5 0 0 / R R s . 1 0 0 0 / - fo r c lie n ts w h o t r a d e w it h o th e r b r o k e r s R s . 1 0 0 /R s .5 0 0 0 /-S p e e d -e A d v a n c e S p e e d -e A M CM IN IM U M IN IT IA L M A R G INA g r e e m e n t S ta m p P a p e rO n l y D e p o s i to r y R e l a t i o n s h i pRevival and Renewal of Smart Trade Online Trading Platform 50Development Credit Bank Ltd.P u n ja b N a t io n a l B a n k ( A llia n c e w it h M o t ila l O s w a l SM C) IC IC I d ir e c t ( O p e n in g 3 - in - 1 A /c )F r e q u e n t/S u b -b ro k e rs S ta n d a r d C h a r g e s C h a rg e sB ro k era g e ra tesSBI BankD e liv e ryV o lu m e B ro k e ra g e R a t e 0 . 5 % o r 1 0 0 w h ic e ve r is m o re0 - 5 la k h 5 - 1 0 la k h0 .5 0 0 % 0 .4 5 0 %0 .5 0 %1 0 - 2 5 la k h 2 5 - 5 0 la k h 5 0 - 7 5 la k h0 .4 0 0 % 0 .3 5 0 % 0 .3 0 0 %7 5 la k h - 2 C ro re0 .2 5 0 %0 .7 5 % a n d 0 . 0 5 % is0 . 7 5 % a n d 0 . 0 5 % is re fu n d a b(m a x re fu n d re fu n d a b(m a x re fu n d le le R s . 7 5 0 /-) R s . 7 5 0 /-)> 2 C ro r e I n tra -d a y V o lum e s0 .1 5 0 %V o lum e * (R s.) ro k e ra g e R a te B < 2 5 la k h 2 5 - 5 0 la k h 0 .1 5 0 % 0 .1 2 0 %0.05%0 .0 5 %5 0 la k h - 1 .5 C ro re.1 0 0 % 0 1 .5 - 3 C ro re 0 .0 8 0 % 3 - 6 C ro re 6 10 Cr o r e 0 .0 7 0 % 0 .0 6 0 %0 .0 5 % a n d 0 . 0 1 % is0 . 0 5 % a n d 0 . 0 1 % is re fu n d a b(m a x re fu n d re fu n d a b(m a x re fu n d le le R s . 8 0 0 0 / -) R s . 8 0 0 0 /-)A b o ve 1 0 C ro re 0 .0 5 0 %F & O V o lu m e s S e t tle m e n t /F irs t LegV o lum e * (R s.) Intra d a y0 - 2 C ro re 2 - 5 C ro re 5 - 1 0 C ro re0 .0 7 0 % 0 .0 4 5 % 0 .0 3 5 %0 .09 0 % 0 .07 0 % 0 .05 0 % 0 .04 0 % 0 .03 0 % 0 .02 5 % 0 .02 0 % 0 .01 0 %F u tu re s 0.0 5% a n d O p t io-n s 1 % O f P re m iu m (M in R S .7 5 P E R L O T) 0 . 0 5 % a n d 0 . 0 1 % is0 . 0 5 % a n d 0 . 0 1 % is re fu n d a b le re fu n d a b le1 0 - 2 0 C ro re 0 .0 3 0 % 2 0 - 3 0 C ro re 0 .0 2 5 % 3 0 - 4 0 C ro re 0 .0 2 0 % 4 0 - 5 0 C ro re 0 .0 1 5 % A b o ve 5 0 C ro re 0 .0 1 0 %Revival and Renewal of Smart Trade Online Trading Platform 51Development Credit Bank Ltd.F e e S tr u c tu r e fo r D e p o s ito r y S e r v ic e s - S e c u r itie sA c c o u n t O p e n in g C h a rg e s C u s to d y C h a rg e sR s . 10 0/- and T ra d in g A / c c h a rg e s R s . 4 0 0 /-R s 9 7 5 / - n o m a in t e n a n c e c h a r g e s fo r I D ire c t A c c o u n t M a i n t e n a n c e C h a r g e s fo r d e m a t a c c o u n t a r e w a i v e d o ff w h i l e o p e n i n g 3 i n 1 A c c o u n t .T r a n s a c t io n C h a r g e sA M a r k e t tr a d e s F o r i n s t r u c t i o n F so ur bi n s it rt u cd t i o n s u b m i t t e d m e th ro u g h : I n t h r o u tg: h : e ne In t e r n e t : 0 . 0 4 % ( M i n . R 0 . 012 0%/ - ) ( M i n . R s . 5 / - ) s C a l l C e n t e r : 0 .C 4 l% C ( eMn itne. r : 0 . 0 2 % ( M i n . 0a l R s . 1 5 / -) R s . 1 0 / -) B r a n c h e s : 0 . 0 B %a n( c hi e s : 0 . 0 2 % ( M i n . 4 r M n. R s . 3 0 / -) R s . 1 5 / -) N il N ila ) F o r t r a n s a c t i o n Dherboi u (gs ha l B sr o k e r : t t e ) C re d it (p u rc h a s e )N il N ilJ u s t p a y 2 5 % u p fr o n t m a r g i n fo r s e l e c t i v e s t o c k s & c a rry fo rw a rd t h e p o s it io n fo r 5 d a y s i n c l u d i n g t h e t ra n s a c t io n d a y .b ) F o r t r a n s a c t i o n t h r oDu egb hi t o( st h lee rs )b r o k e r s : a C r e d it (p u r c h a se ) B O ff M a r k e t T r a d e sN ilD e b it (s a le s ) C re d it R e je c tio n / fa ils C h a rg e sN ilN il R s 30/-N il R s . 1 5 /-P le d g e c h a r g e s0 . 0 2 % o r M in R s 1 5 /- o r 0 .0 4 % o r M in R s 3 0 / If IC IC I i s t h e c Ifo u n ItC Ir i s t h e c o u n t e r IC e p a r t y 0 . 0 2 % ( Mp anr .t yR 0s .. 0 12 5%/ - ( M i n . R s . 1 5 / i ) o r 0 . 0 4 % ( M i )n o rR 0s .. 0 34 0%/ - )( M i n . R s . 3 0 / - ) . i f IC IC I i s n o t t hf eICc IC uI ni st e nr o t t h e c o u n t e r i o p a r t y + N S D L pc ah rat y g + s N oSf D L c h a r g e s o f r e R s . 2 5 / - p e r i n R tsr u c2 t5i o/ -n p e r i n s t r u c t i o n s .P le d g e c re a t io n P le d g e c lo s u re P le d g e in vo c a t io nRevival and Renewal of Smart Trade Online Trading Platform 52Development Credit Bank Ltd.A n n u a l M a in te n a n c e C h a r g e sR e s id e n t A c c o u n t sN e w C lie n t s C lo sin g C h a rg e sR s 3 5 0 / - fo r c u s to m e rs re c e ivin g R s 3 5 0 / fo r c u s t o m e r s re c e ivin g s ta te m e n ts b y e m a il350 S t a t e m e n t t h r o us g. h1 2 5 m /a- i lo r ( R s 1 2 0 0 / R e-0 : R s . 4 5 0 o r Pf oh r y cs ui cs at o m e r s r e c e i v i n g l s t a t e m e n t : Rs st a. t 5e 0m0 e n t s b y e - m a i l )D e m a te r ia li z a tio n s C h a r g e sR s 3 7 /-F o r e a c h r e q u Fe os rt efoa r cmh :r e q u e s t fo r m : R s . 3 5 / - a n d ER xs t .r a3 5fo/ -r a n d E x t r a fo r e a c h c e r t i f i c a teea: c Rh s c 2 /r -t i fi c a t e : R s 2 / e R s . 2 0 fo r e v e rR s h. u n d foer d e v e r y h u n d r e d y 20 r s e c u r i t i e s o r ps ae rct ut h i e i rees o fo r p a r t t h e r e o f rt O R a fl a t fe e oO f RR sa . 2fl 0 t p fe re o f R s . 2 0 p e r a e r e q u e s t , w h i c h ee qv u e si st , w h i c h e v e r i s r er h ig h e r h ig h e rR e m a te r ia li z a ti o n C h a r g e sR s . 2 5 /-C h a r g e s fo r R e q u e s ts to fr e e z e o r d e fr e e z e A c c o u n tA d d iti o n a l A c c o u n t S ta te m e n tsR s . 3 0 /-R s . 2 0 /-R s . 2 0 /-N R I C lie n t s u s in g e le c t r o n ic c o m m u n ic a t io n ( D C N ) N R I C lie n t s n o t u s in g e le c t r o n ic c o m m u n ic a t io nS p e e d -e A d v a n c e S p e e d -e A M CM IN IM U M IN IT IA L M A R G IN R S .5 0 0 0 /-A g r e e m e n t S ta m p P a p e rR s . 1 0 0 /-R s . 1 0 0 /-O n ly D e p o sito r y R e la tio n sh i pA d v a n c e A m o Au d v aRn sc .e A m o u n t R s . nt 2 , 5 0 0 / - a n d T h7 r, e5 s0 h0 o/ -l da n d T h r e s h o l d A m o u n t R s . 1 A, 0m0 o u - n t R s . 2 , 0 0 0 / 0/Revival and Renewal of Smart Trade Online Trading Platform 53Development Credit Bank Ltd.B ro k e ra g e ra te sH D F C S e c u r it ie sK o t a k S e c u r it ie sO p t io n o f F ix e d b ro k e ra g e o f 0 . 4 9 % (M in 4 P a is e )K o t a k M a h in d r a O p t io n s C h a r g e sD e liv e ry< 1 la k h 1 - 5 la k h 0 .59 % 0 .55 %5 - 1 0 la k h0 .45 %1 0 - 2 0 la k h 2 0 - 6 0 la k h 6 0 la k h - 2 c ro re > 2 c ro re0 .36 % 0 .27 % 0 .23 % 0 .18 %I n tra -da y V o lu m e sO p t io n o f F ix e d b ro k e ra g e o f 0 . 4 9 % (M in 3 P a is e ) S q u a re -o ff b o t h s id e s < 2 5 la k h s 0 . 0 6 % b o t h s id e s 2 5 la k h s - 2 c ro re s 0 . 0 5 % b o t h s id e s 2 c ro re s - 5 c ro re s 0 . 0 4 % b o t h s id e s > 5 c ro re s 0 . 0 3 % b o t h s id e sF & O V o lu m e sO p t io n o f fix e d b ro k e ra g e o f 0 . 4 9 % (M in 3 P a is e ) fo r F u t u re s a n d R s . 1 0 0 / - p e r lo t o r 1 % o n p re m iu m w h ic h e ve r is h ig h e r fo r O p t io n s< 2 c ro re sK o ta k M a h i n d r a O p ti o n s C h a r g e s M in im u m M in im u m 0 . 0 7 % b o t h s id e s In t ra B r o k e r a g e B ro k e r a g e D a y , 0 . 0 9 % b o t h s idM s n th l y P r e m i u mI n tr a d a y S e ttl e m e n t P e r L o t P e r L o t eo S e t t le m e n t . V o lu m e B ro k e r a g e %B r o k e r a g e %(I n tr a d a y )(S e ttl e m e n t)0 . 0 4 5 % b o t h s id e s fo r In t ra D a y 0 . 0 7 3 % b o t h s id e s fo r S e t t le m e n t U p t o 4 L a c s 0 . 0 3 6 % b o t h s id e s fo r In t ra D a y 0 . 0 4 6 % b o t h 5 . 5 - 1 0 c ro re s s id e s fo r S e t t le m e n t 4 L a c s -1 1 L a c s 0 . 0 2 7 % b o t h s id e s fo r In t ra D a y 0 . 0 4 6 % b o t h 1 0 - 2 5 c ro re s s id e s S e t t le m e n t 1 1 L a c s -2 0 L a c s 0 . 0 2 3 % b o th s id e s F o r In t ra D a y , 0 . 0 3 2 % b o t h > 2 5 c ro re s s id e s fo r S e t t le m e n t . 2 0 L a c s -5 0 L a c s 2 - 5 . 5 c ro re s > 5 0 L ac s2 .52.51001002 .2 52.51001001 .82.31001001 .3 5 1 .1 52.3 1.680 70100 100Revival and Renewal of Smart Trade Online Trading Platform 54Development Credit Bank Ltd.F ee S tructure for D epository S erv ices - S ecuritiesA c c o u n t O p e n in g C h a r g e s C u s t o d y C h a rg e sN ILF o r N R I A / c O p e n in g C h a r g e s R s . 3 2 5 0 / - A ve r a g e Q u a rt e r ly M a in t e n a n c e in S a vi n g A / c R s . 1 0 ,0 0 0 /-T r a n s a c t io n C h a rg e sA M a r k e t tr a d e sF o r E q u it y S a l e s 0 . 0 4 % o f t h e va lu e o f t h e t ra n s a c t io n (M in .2 0s- fo r N S, D Lin R s/ - fo r C D) S L R/ M 25 A d d i ti o n a l N S D L D e b t T r a 0.0s 4%cot if o n s S e l l n a t h e v a l u e o f t h e t r a n s a c ti o n . M i n i m u m R s 5 0 0 / - a n d a ) F o r t r a n s a c t i o n t h r o u g iht (B raolek se) r : Deb s M a x im u m R s 5 0 0 0 /- p e r T x n C re d it ( p u r c h a s e ) N ILb ) F o r tr a n s a c ti o n t h r o u g hD e bth e(s able os k e r s : o it r r ) C re d it (p u rc h a se ) B O ff M a r k e t T r a d e s-D e b it ( s a le s ) C re d it R e j e c t i o n / fa i l s C h a r g e sP le d g e c h a r g e sP le d g e c r e a t io n P le d g e c l o s u re P le d g e in vo c a t io n If p l e d g e in fa vo u r o f H D F C B a n k , fe e s w il l b e 0 . 0 2 % o f t h e va lu e o f t h e sin ar .eR 5 -), o r0.0 4 o f t h e (M h 2s s / % va lu e o f t h e (Mh in r e s. R 5 -). s a 2s /Revival and Renewal of Smart Trade Online Trading Platform 55Development Credit Bank Ltd.A n n u a l M a in te n a n c e C h a rg e sR s . 5 0 0 / - fo r C D S L a n d N S D L a n d R s 1 0 0 0 / - fo r a c c o u n t s o t h e r t h e n In d ivid u a l/ H U F / N R I a n d T ru s t A c c o u n t s fo r C D S LR e s id e n t A c c o u n t sN e w C lie n t s C lo si n g C h a rg e sD e m a te r i a l i z a ti o n s C h a r g e sR s 3 p e r c e rt ificpalues R3s5/ - p e r r e q u (Ms in R s . , t . e t 3 8 / -)R e m a t e r i a l i z a ti o n C h a r g e sF o r N S D L A t ,aCc u u a ls t )R sa1 0/ - fo r e ve r y t rr e n ly . h u n d re d s e c u rit ie s o r p a r t t h e re o f; o r b )a fla t fe e o f R s . 1 0 / p e r c e r t ific a t e w h ic h e ve r is h ig h e r - -- -- F o r C D S L - A t a c t u a ls , a s le vie d b y C D S LC h a r g e s fo r R e q u e s ts to f r e e z e o r d e fr e e z e A c c o u n tn o n p e r io d ic s t a t e m e n t s a n d o t h e r c o. m m u n ic a t io n R s 2 5 / - p e r r e q u e s t fo r in la n d a d d r e s s A d d i ti o n a l A c c o u n t S ta te m e n ts R s . 5 0 0 / - p e r re q u e s t fo r fo r e ig n a d d re s sN R I C lie n ts u s in g e le c tro n ic c o m m u n ic a tio n (D C N ) N R I C lie n ts n o t u s in g e le c tro n ic c o m m u n ic a tio nS p e e d -e A d v a n c e S p e e d -e A M CM IN IM U M IN IT IA L M A R G INA g r e e m e n t S ta m p P a p e r A d va n c e fe e s o f R s . 2 , 5 0 0 / - , fo r e a c h d e m a t a c c o u n t , w h ic h w ill b e a d ju s t e d a g a in s t s e r vic e c h a r g e s . T h r e s h o ld R s . 1 , 0 0 0 / -O n l y D e p o si to r y R e l a ti o n sh i pRevival and Renewal of Smart Trade Online Trading Platform 56Development Credit Bank Ltd.Kotak Securities Advance Fees Brokerage1000 2500 4000 For NSE, BSE Cash Segment Intraday , brokerage is charged on both the legs The Advance Brokerage paid+ Service Tax would be allowed for reversal for validity period 6 monthBrokerage ratesReliance MoneyDelivery0.35%0.30%0.25%Less than 10 Lacs0.45%10 Lacs to 25 Lacs0.40%25 Lacs to 50 Lacs 50 Lacs to 2.5 Cr. More than 2.5 Cr0.30% 0.20% 0.15%Intra-day Volumes0.04%0.036%0.03%Less than 2 Cr. 2 Cr. To 5 Cr. 5 Cr. To 10 Cr. 10 Cr. To 25 Cr. 25 Cr. To 50 Cr. 50 Cr. Or More0.05% 0.04% 0.03% 0.03% 0.02% 0.015%F&O VolumesFor Futures & Options intraday , no brokerage is charged on Second leg Options Monthly Premium Turnover Brokerage Per Lot (In Rs.)Futures (both Sides) Futures (both 0.04% Options Rs Sides) 0.036% 100 Per Lot or 1% on Options - Rs 80 Premium, whichever is Per Lot or 1% on higher Premium whichever higherFutures (both Sides) 0.03% Options - Rs 60 Per Lot or 1% on Premium whichever higherLess than 2 Lacs1002 Lacs To 5 Lacs805 Lacs To 10 Lacs7010 Lacs To 25 Lacs 25 Lacs Or More60 50Revival and Renewal of Smart Trade Online Trading Platform 57Development Credit Bank Ltd.G e t K ota k S ec u ritie s S M S A lerts @ R s . 5 0/ - per m on t h p er c at eg oryC all & Trad e fre e fo r firs t 2 0 c a lls fo r a c alen dar m on t h. F ro m th e 21 s t c all, y ou pa y R s . 20/- pe r c all.Fee Structure for Depository Services - SecuritiesA c c ou nt O pen in g C harge s C u s t od y C harge sN ilN ilN ilTra ns action C harg e sA M a rke t tra d e sa ) F o r tra n sa cti o n th ro u g h B ro ke (s ales ) D ebit r: C red it (pu rc has e)F o r Ins tu c tions give n in P h y s ic a l F orm-, F oR s 25/ r Ins t ru c tio ns re c eived t h ro ugh In te rnet / O nline Trad ing t hrou gh R elianc e S ec u rit ie s Ltd . - R s 12 /-, E x tra c ha rges for pro c es s ing o f in s t ruc tion s s u bm itt e d on t he ex e c ution d ate (ac c ep t ed at C lien t's Rb ) F o r tra n sa cti o n th ro u g h o th e r D eb k e(s ales ) b ro it rs: C re d i t (p u rc h a se ) B O ff M a rke t T ra d e s F o r Ins tu c tions give n in P h y s ic a l F orm-, F oR s 25/ r Ins t ru c tio ns re c eived t h ro ugh In te rnet / O nline Trad ing t hrou gh R elianc e S ec u rit ie s Ltd . - R s 12 /-, E x tra c ha rges for pro c es s ing o f in s t ruc tion s s u bm itt e d on t he ex e c ution d ate (ac c ep t ed at C lien t's RD eb it (s ales ) C red it R e j e c tio n / fa i l s C h a rg e sPle dg e charg e sP led ge c re at io n P le dge c los u re P ledg e invoc atio nR s 25 /- pe r IS INRevival and Renewal of Smart Trade Online Trading Platform 58Development Credit Bank Ltd.Brokerage ratesReliance MoneyFor NSE, BSE Cash Segment Intraday , brokerage is charged on both the legsRelaince Money Limit CardsDelivery turnover (Lacs) 2 10 Margin turnover (Lacs 2 90 Validity (days) 365 60DeliveryCard Name PR-500Value (Rs.) 500 1000Less than 10 Lacs0.45%Bi-Monthly10 Lacs to 25 Lacs0.40%Half Yearly25003027018025 Lacs to 50 Lacs 50 Lacs to 2.5 Cr. More than 2.5 Cr0.30% 0.20% 0.15%Annual 5000500070630365Brokerage of Rs 15 will be charged per executed order for all clients under limit card moduleIntra-day VolumesLess than 2 Cr. 2 Cr. To 5 Cr. 5 Cr. To 10 Cr. 10 Cr. To 25 Cr. 25 Cr. To 50 Cr. 50 Cr. Or More0.05% 0.04% 0.03% 0.03% 0.02% 0.015%F&O VolumesFor Futures & Options intraday , no brokerage is charged on Second leg Options Monthly Premium Turnover Brokerage Per Lot (In Rs.)Less than 2 Lacs1002 Lacs To 5 Lacs805 Lacs To 10 Lacs7010 Lacs To 25 Lacs 25 Lacs Or More60 50Revival and Renewal of Smart Trade Online Trading Platform 59Development Credit Bank Ltd.F e e S tructu re for D e po sitory S e rv ice s - S e curitie sA c c o u n t O p e n in g C h a r g e s C u s to d y C h a rg e sT r a n s a c t io n C h a r g e sA M a r k e t tr a d e sF o r In s t u c t io n s g ive n in P h2y5s-, F oa rl F o rm R s / ic In s t r u c t io n s re c e i ve d t h ro u g h In t e r n e t / O n li n e T r a d in g t h r o u g h R e lia n c e S e c u r it i e s L t d . - R s 1 2 / - , E x t r a c h a r g e s fo r p r o c e s s in g o f in s t r u c t i o n s s u b m it t e d o n a ) F o r t r a n s a c t i o n th Doeub g h ( sBa rl e s )e r : t h e e x e c u t i o n d a t e (a c c e p t e d a t C l ie n t 's R r it ok C r e d i t ( p u rc h a s e )b ) F o r t r a n s a c t i o n th r o u gDhe b itt h (e r lb r o) k e r s : o sa es C r e d it (p u r c h a se ) B O ff M a r k e t T r a d e s F o r In s t u c t io n s g ive n in P h2y5s-, F oa rl F o rm R s / ic In s t r u c t io n s re c e i ve d t h ro u g h In t e r n e t / O n li n e T r a d in g t h r o u g h R e lia n c e S e c u r it i e s L t d . - R s 1 2 / - , E x t r aD e b it ( s a le s ) C re d it R e j e c t i o n / fa i l s C h a r g e sP le d g e c h a r g e sP le d g e c re a t io n P le d g e c lo s u r e P le d g e in vo c a t i o nR s 2 5 / - p e r IS INRevival and Renewal of Smart Trade Online Trading Platform 60Development Credit Bank Ltd.A nnua l M a inte na nc e C ha rg e sIn d ivid u/aH U F/ T ru s t s . R s 0-, N R I/ F o re ig n l 20 / N a t io n a ls . 1 0s0 /0- , C o rp o ra/t O t h e rs . R s R e 1000/-R e s id e n t A c c o u n t sN e w C lie n t s C l o si n g C h a r g e s N ILD e m a te r i a li z a ti o n s C h a rg e sR e q u e s t fo rm 2 0/Ra n d E x t ra fo r e a c h c e rt ific a t e -s R s 2/-R e m a te r i a l i z a ti o n C h a rg e sR s 2 5 / - S u b je c t t o a m in im u m o f R s . 4 0 fo r 1 0 0 s e c u rit ie s p lu s R e g d . P o s t c h a rg e s s u b je c t t o a m in im u m o f R s . 2 5C h a r g e s fo r R e q u e sts to fre e z e o r d e fre e z e A c c o u n tA d d i ti o n a l A c c o u n t S ta te m e n tsP h y s ic a l A c c o u n t S t a t e m e n t s : In d ivid u a l / H U F / T ru s t/ sC o rp o ra t e s 4 0/ -,sfo r N R Io re ig n R /F N a t io n a ls 1 0 0s/0RN R I C lie nts us ing e le c tro nic c o m m unic a tio n(D C N ) N R I C lie nts no t us ing e le c tro nic c o m m unic a tio nS pe e d-e A dv a nc e S pe e d-e A M CM IN I M U M I N I T I A L M A R G I NA g re e m e n t S ta m p P a p e rO n l y D e p o si to ry R e la ti o n sh ipRevival and Renewal of Smart Trade Online Trading Platform 61Development Credit Bank Ltd.Brokerage ratesIDBI Paisa BuilderDeliveryUp to Rs. 2,00,000 Rs. 2,00,001- Rs. 5,00,000Brokerage Per Leg (%) 0.50% 0.45%Rs. 5,00,001 - Rs 10,00,0000.40%If delivery transactions are squated-off within the same day/settlement, Intraday brokerage will be charged for all such transactions (both sides ).Rs. 10,00,001 - Rs 20,00,000 Rs. 20,00,001 - Rs 40,00,000 Rs. 40,00,001 - Rs. 1,00,00,000 Rs. 1,00,00,001 - Rs. 5,00,00,0000.35% 0.30% 0.25% 0.20% 2 paise per share for Delivery subject to an overall minimum of Rs. 20 per contract, whichever is higher. Contracts will be separate for NSE and BSE, nomal segment and for Trade to Trade segment.Above Rs. 5,00,00,0000.15%Intra-day VolumesBrokerage Per Leg (%) Up to Rs. 2,00,00,000 Rs. 2,00,00,001 - Rs. 4,00,00,000 Rs. 4,00,00,001 - Rs. 6,00,00,000 Rs. 6,00,00,001 - Rs. 8,00,00,000 Rs. 8,00,00,001 - Rs. 10,00,00,000 Above Rs. 10,00,00,0000.050% 0.045% 0.040% 0.035% 0.030% N/A1 paisa per share for intraday square off subject to an overall minimum of Rs. 20 per contract, whichever is higher. Contracts will be separate for NSE and BSE, nomal segment and for Trade to Trade segment.F&O Volumes Brokerage Per Leg (%) MonthlyFuturesFor Futures intra-day squareoff (a contract or a position being entered and squared off on the same day), brokerage will be charged only for the first leg of the transaction and for the second leg which is in the nature of square-offUp to Rs. 2,00,00,0000.048% 0.040% 0.035% N/ARs. 2,00,00,001 - Rs. 5,00,00,000Rs. 5,00,00,001 - Rs. 10,00,00,000Above Rs. 10,00,00,0001% on the premium , subject to a minimum of Rs . 100 per contract . The turnover in Options would not be considered for calculating the slabs for the brokerage rebates on futures contracts . In case of same day square off in the Options contract, brokeragRevival and Renewal of Smart Trade Online Trading Platform 62Development Credit Bank Ltd.Fee Structure for Depository Services - SecuritiesA c c o u n t O pe n in g C ha rg e s C u s t od y C h a rg e sN ilTrans a ctio n C ha rg e sA M a rk e t tra d e sa ) F o r tra n sa ctio n th ro u g h B ro kit r: a le s ) D eb e (s C re d it (p u rc h as e )b ) F o r tra n sa c tio n th ro u g h o th e r D ro k e(s a le s ) b e b it rs: C re d i t (p u rc h a se ) B O ff M a rk e t T ra d e sR s . 6 pe r tra n s a c tio n d on e th ro u gh ID B Ip a is a b u ilde r.in o r R s . 1 00 p e r in s tru c tio n/s c rip fo r th e D e live ry In s tru c tio n S lip s u b m it te d a t ID B I C ap ita l bran c h e s . N IL R s . 6 pe r tra n s a c tio n d on e th ro u gh ID B Ip a is a b u ilde r.in o r R s . 1 00 p e r in s truc tio n /s c rip for the D elive ry Ins tru c tion S lip s u bm itte d a t ID B I C a pita l b ran c h e s . N ILD e b it (s a le s ) C re d it R e je c ti o n /fa ils C h a rg e sPle dg e c harg e sP le dg e c re a tio n P le dg e c lo s u re P led g e invo c a tio nR s . 1 00 Rs. 25 Rs . 100 O r Rs . 25Revival and Renewal of Smart Trade Online Trading Platform 63Development Credit Bank Ltd.Annual M aintenance Charge sResident AccountsFree for the first Year. AMC Rs. 350 from year two onwardsNew Clients Closing Cha rge sDema teria liza tions Charge sRs. 3 Amount charged per request (dematerialisation) Rs. 30Re m a te ria liza tion Cha rge s Cha rges for Re que sts to fre e ze or de fre eze AccountRs. 20Additiona l Account Sta te m e ntsRs. 20 per requestNRI Clients using e le ctronic communication(DCN ) NRI Clients not using electronic communicationSpe ed-e Advance Spe ed-e AM CMINIMUM INITIAL MARGINAgree m e nt Sta m p Pa pe rOnly De pository Re la tionshipDCB Smart Trade Revival and Renewal of Smart Trade Online Trading Platform 64Development Credit Bank Ltd.Development credit bank in alliance with India Infoline Financial Services now offers an online trading account. DCB smart trade will give its customers an opportunity to be their own broker with complete research support from IIFL which will helps them to make right decision at right time. Buying and selling is as easy as click of a button. The platform will allow customers to Trade from the comfort of their home or office either through the internet or the phone. Smart Trade DCB's online trading terminal has been designed to provide customers with an investment experience like never before. Requirements for the Customers: 1.) Saving Account/Current Account (Individual/Proprietorship CA) Documentation as per rules and norms laid by RBI. 2.) DEMAT Account Documentation as per norms laid down by SEBI and concerned Depository. 3.) Online Trading Account PAN Card Address Proof Photo Identity Proof Bank and Demat Account Proof Photographs and Initial self signed cheque Schedule of Charges:Life Time Scheme One-time registration fee Minimum Initial Margin Trading brokerage (Cash) Delivery brokerage Futures brokerage Options brokerage (on premium) Minimum Per Share (Trading) Minimum Per Share (Delivery) Rs.555 Rs.5000 0.05% 0.50% 0.05% 0.05% or Rs.100 whichever is higher 5 Paisa 5 PaisaRevival and Renewal of Smart Trade Online Trading Platform 65Development Credit Bank Ltd.Business Model:DCBIndia InfolineDepositor y Banking AccountClientBrokingAs per proposed business model the client will have a saving account with DCB, while his demat and trading account would be opened and maintained by India Infoline. The client will have to use the Trading Terminal advance software or browser based platform for trading which will be provided by India Infoline but will be customized for DCB clients. Once the client has opened all of the three accounts he will have to access his savings account at DCB and transfer money as per his requirement to the trading account with India Infoline so as to trade online. The client can then start trading online and his Demat account is updated by India Infoline as Revival and Renewal of Smart Trade Online Trading Platform 66Development Credit Bank Ltd. per transactions made by him. Suppose that the client has sold some securities then in that case his Demat account will be debited for the said scrip to that extent and the shares will to transfer to the pool maintained by India Infoline while his trading account will be credit to the extent of the selling price of the said securities.However since the trading and the depository account would be maintained by India Infoline, any realization or profits made by the client will not be directly reflected in the clients Saving Account. The client will have to transfer such amount to his saving account if he wishes to and he would have to place a request of fund payout with India Infoline. Looking at the needs of the customers we have categorized Smart Trade platform into Two different models to suit their preference. The said models would be aimed to meet the needs of both, Retail Investors Active Investors Smart Trade offers a browser-based system designed for customers who are Active investors. A comprehensive account with live streaming quotes and top class features to help you make instant transactions. It is also designed for customers who transact occasionally. It is ideal for investors who believe in the Buy and Hold approach towards investment in equities. A comprehensive trading service, which allows you to invest in equities and derivatives. Smart Trade trading platform allows the flexibility of trading on any Internet capable system, with access to both the NSE and BSE. Smart Trade sophisticated yet easy to use point and click order entry interface allows reacting more quickly to the markets and making better decisions. Some Basic Features of Smart Trade: Access to both the NSE and BSE on a single screen Revival and Renewal of Smart Trade Online Trading Platform 67Development Credit Bank Ltd. Simple order entry for Equity & Derivatives Fully Customizable User friendly display Real time order tracking Instant Automatic funds transfer with phone banking Apply online for IPO Apply and Keep Track of Mutual fund investment Instant Loading Customized Multiple Watch lists Hot Key Functions Market Depth Window Real-time configurable Market Watch with auto save functionality Tick by Tick Intraday Charting Real-time Research & Trade Execution notification Instant trade confirmation Online fund transfer facility After market hours, orders can also be placed in both the Exchanges Access to latest research reports SmartTrade also provides an EXE based desktop software designed for active traders who transact frequently to capture favorable short-term price movements. The EXE platform is a virtual dealer terminal and this program can be downloaded on the clients computer. The platform offers active traders the tools they need to make critical decisions with confidence. SmartTrade is designed and built from the ground up to address the needs of active traders. SmartTrade makes the most of state-of the-art technology to deliver power, speed and reliability. Through an easy-to-use interface, users are provided with the same tools and advantages that the professionals enjoy. Some Basic Features of Smart Trade EXE platform: EXE based desktop software designed for active traders Tools and advantages that the professionals enjoy Revival and Renewal of Smart Trade Online Trading Platform 68Development Credit Bank Ltd. Fully Customizable display Dynamic Charts with Indicators EOD Charts Advanced Alert capabilities Single screen Interface Alerts and reminders Similar to a dealer terminal.Recommendations & ConclusionSome of Additional features which can be used so as to give DCB SmartTrade an edge over competition and used as its USPs: The Margin trading may be modified so as to show SmartTrade to be a NO MARGIN account. For this either the margin can be changed and decreased or we can instead ask the customers to maintain a bank balance to the extent of the margin required. Bonus or Reward points can be given to customers for the amount lying in Trading account as the money would be lying idle and neither would the customers be earning any interest on that amount. If delivery transactions are squared off within the same day, Intraday Brokerage can be charged on the same. Facility to convert Intraday, Delivery and open positions Free trading through Phone (Dial-n-Trade): Customers can have few free Call-n-Trade for each month Have a software designed to work on mobile devices, (BNP Paribas, ICICI has one) Have differential brokerage slabs instead of charging customers a flat rate. 1.) Apart from the product development and pricing another area that has to be looked at after launching Smart Trade will be the product delivery and people who would be Revival and Renewal of Smart Trade Online Trading Platform 69Development Credit Bank Ltd. directly or indirectly related to it. To begin with, DCB will only maintain Saving account of the customer while the Demat and Trading account will be opened and maintained with India Infoline. The first step will be to customize account opening form for DCB customers. For this purpose the old form may be used which can also be clubbed with the Demat account form so as to have one combined form for opening both the accounts. Product demonstration can be given across branches so as to attract and familiarize the customers to the product.2.) Opening Smart Trade account option must also be given to new customers who open Savings accounts with DCB or atleast he should be made aware of the product. Separate welcome Kit and Boucher to be used for customers even though the Demat and Trading account would be opened and maintained by IIFL. Pamphlets and/or Posters should be made available in each branch so as to increase product visibility. 3.) The process of lead generation should be undertaken by RMs and they should be given separate targets with respect to SmartTrade. Further efforts can be undertaken by Branch Managers (BM) by making sure the SmartTrade brochure, pamphlets are readily available at branch level and the branch staff is well aware of the product. Special attention should be given by branch in case of HNI clients of the bank. 4.) For the convenience of customers there should be a dedicated helpdesk for DCB smart trade users so as to quickly address and resolve their issues. But the problem with keeping the separate helpdesk with IIFL is that their RMs may manipulate DCB SmartTrade customers and it also cannot be kept with DCB alone as DCB RMs will not be able to access much of the information as Trading and Demat account would be maintained by IIFL. So a solution should be worked out so as to have dedicated helpdesk which will be manned by IIFL but a window should be given to DCB to overlook them. This will also reduce any chances of IIFL RMs poaching DCB Smart Trade customers. Revival and Renewal of Smart Trade Online Trading Platform 70Development Credit Bank Ltd.5.) Since both the Demat and Trading account would be opened with IIFL, DCBs dependence on IIFL would increase in terms of Manpower and Knowledge Capital and any error on their part would affect DCBs goodwill and creditability directly. 6.) As far as operation is concerned, a centralized account opening and tracking system must be put in place which will help to keep track of the forms filled at any place and also have an update on its status. There is no provision for the same at present. And the account opening is done at Chennai. The bank must also embark resources on Brand Building. The bank has the potential to grow with E-broking and should advertise its offerings aggressively. As the bank does not cover all regions in India, it can opt for advertising channels like Web Hosting and advertise on Social Networking websites like Tweeter, LinkedIN, Facebook and Orkut amongst others to increase Brand visibility. The core benefit of letting IIFL maintain both Trading and Demat account would be mitigation of risk as upkeep of the accounts would have to be done by IIFL. This will also help save manpower and capital expenditure for DCB along with reducing any Operational and Audit related issues. This will also allow DCB to use their resources only for generating new leads and addressing customer grievances. Inclusion of additional features like IPO subscription will help to increase customer engagement. Exclusive and Dedicated business sourcing channel with IIFL will increase sales and better business focus with targets at both ends.Revival and Renewal of Smart Trade Online Trading Platform 71Development Credit Bank Ltd.BibliographyWebsites: Development Credit Bank: www.dcbl.com India Infoline: www.indiainfoline.com, www.5paisa.com ShareKhan: www.sharekhan.com HsbcInvestDirect: www.hsbcinvestdirect.co.in Geojit BNP Paribas: www.geojitbnpparibas.com Axis Online Trading: www.axisbank.com Motilal Oswal: www.motilaloswal.com SBI Online Trading: www.sbicapsec.com Religare Securities: www.religaresecurities.com SMC: www.smcindiaonline.com Books: Esme Faerber. All About Stocks-The Easy way to get started Reports: Indias Leading Equity Broking Houses 2009 (Dun and Bradstreet) ICRA: Equity Brokerage Industry Update. Revival and Renewal of Smart Trade Online Trading Platform 72Development Credit Bank Ltd.Revival and Renewal of Smart Trade Online Trading Platform 73