Indian Brokerage Industry

“A Study at RELIGARE ENTERPRISES LTD.”

Submitted for the partial fulfillment of the degree of MASTERS OF BUSINESS ADMINISTRATION

Submitted By: Submitted To: Meenakshi Saad MBA IV Semester Roll No. : 0961070028

ABES INSTITUTE OF BUSINESS MANAGEMENT Campus-2, 19TH Km stone, National Highway-24, Vijay Nagar, GHAZIABAD City- 201009 (UP) INDIA

Affiliated to: GAUTAM BUDHH TECHNICAL UNIVERSITY, LUCKNOW

PREFACE

“A good broker system must be able to cope with an extremely complex and dynamic environment.”

The microstructure of the stock market in which brokers work is highly dynamic and volatile. Many stocks are available to be bought and sold, each exhibiting its own patterns and characteristics that are highly unpredictable. With so many options and considerations that need to be taken into account, it is an extremely difficult task for a broker to investigate aspects of the stock market and consistently provide effective advice to their clients.

Thus, brokers perform their day-to-day tasks with the aid of a broker system. Such a system should provide tools for interacting with exchanges and performing analysis. As a consequence, these broker systems are quite large and complicated by themselves.

This research aims to analysis Stock broker on the basis of their services, products, growth, and their competitiveness. Because Stockbrokers are one of the main participants in stock exchanges worldwide, they often act as an agent for their clients, making trades on their behalf. They also act as advisors, providing suggestions to their clients on what stocks to buy and sell.

ACKNOWLEDGEMENT

I take this opportunity to express my heartiest gratitude to Dr. MONICA

GUPTA, ABES Institute Of Business Management ghaziabad , U.P. for permitting me to undertake this project..

I have gained a lot of knowledge through my summer training. Lastly I am very thankful to all of my friends who have helped in completing my project.

Importance of study

This project report on Project Report on Trading in Stock Market (India bulls Securities

Limited) and to know about Primary and Secondary Market, Market Intermediatries,

Depository Participants, Demat Process and Compulsory Scripts for Demat.

This study has enabled me to enhance my knowledge in analyzing market and different companies under study.

INTRODUCTION

Overview

The Indian retail brokerage industry consists of companies that primarily act as agents for the buying and selling of securities (e.g. stocks, shares, and similar financial instruments) on a commission or transaction fee basis.

It has two main interdependent segments:

1. Primary market

2. Secondary market.

Evolution of the Indian Brokerage Market

The Indian broking industry is one of the oldest trading industries that had been around even before the establishment of the BSE in 1875. Despite passing through a number of changes in the post liberalization period, the industry has found its way towards sustainable growth. The evolution of the brokerage market is explained in three phases: pre1990, 1990-2000, post 2000.

Early Years

The equity brokerage industry in India is one of the oldest in the Asia region. India had an active stock market for about 150 years that played a significant role in developing risk markets as also promoting enterprise and supporting the growth of industry. Bombay, at that time, was a major financial centre having housed 31 banks, 20 insurance companies and 62 joint stock companies.

In the aftermath of the crash, banks, on whose building steps share brokers used to gather to seek stock tips and share news, disallowed them to gather there, thus forcing them to find a place of their own, which later turned into the Dalal Street. A group of about 300 brokers formed the stock exchange in July 1875, which led to the formation of a trust in

1887 known as the “Native Share and Stock Brokers Association”.

Beginning of a new equity culture

A new set of economic and financial sector reforms that began in the early 1990s gave further impetus to the growth of the stock markets in India. As a part of the reform process, it became imperative to strengthen the role of the capital markets that could play an important role in efficient mobilization and allocation of financial resources to the real economy. The importance of an efficient micro market infrastructure came into focus following the incidence of market abuses in securities and banking markets in 1991 and

2001 that led to extensive investigations by two respective Joint Parliamentary

Committees.

The Securities and Exchange Board of India (SEBI), which was set up in 1988 as an administrative arrangement, was given statutory powers with the enactment of the SEBI

Act, 1992. The broad objectives of the SEBI include

 To protect the interests of the investors in securities  To promote the development of securities markets and to regulate the securities

markets

NSE was incorporated in Nov 1992 as a tax paying company, the first of such stock exchanges in India, being run on no-profit basis. NSE was recognized as a stock exchange under the Securities Contracts (Regulations) Act 1956 in Apr 1993. It commenced operations in wholesale debt segment in June 1994 and capital market segment (equities) in Nov 1994. The setting up of the National Stock Exchange brought to Indian capital markets several innovations and modern practices and procedures such as nationwide trading network, electronic trading, greater transparency in price discovery and process driven operations that had significant bearing on further growth of the stock markets in India.

Rapid Growth

The last decade has been exceptionally good for the stock markets in India. In the back of wide ranging reforms in regulation and market practice as also the growing participation of foreign institutional investment, stock markets in India have showed phenomenal growth in the early 1990s. The stock market capitalization in mid-2007 is nearly the same size as that of the gross domestic product as compared to about 25 percent of the latter in the early 2000s. Investor base continued to grow from domestic and international markets. The value of share trading witnessed a sharp jump too. Foreign institutional investment in Indian stock markets showed continuous rise reaching about USD10 billion in each of these years between FY04 to FY06. Stock markets became intensely technology and process driven, giving little scope for manual intervention that has been the source of market abuse in the past. Electronic trading, digital certification, straight through processing, electronic contract notes, online broking have emerged as major trends in technology. Risk management became robust reducing the recurrence of payment defaults. Product expansion took place in a speedy manner. Indian equity markets now offer, in addition to trading in equities, opportunities in trading of derivatives in futures and options in index and stocks. ETFs are showing gradual growth.

Within five years of introduction of derivatives, Indian stock markets now are ranked first in stock futures and fourth in index futures. Indian stock markets are transaction intensive and thus rank among the top five markets in this regard. Stock exchange reforms brought in professional management separating conflicts of interest between brokers as owners of the exchanges and traders/dealers. The demutualization and corporatization of all stock exchanges is nearing completion and the boards of the stock exchanges now have majority of independent directors.

Foreign institutions took stake in India‟s two leading domestic stock exchanges. While

NYSE Group led consortium took stake in the National Stock Exchange, Deutsche Borse and Singapore Stock Exchange bought equity in the Bombay Stock Exchange Ltd.

MACRO-ECONOMIC SENARIO

The Indian economy, which witnessed robust growth up to the second quarter of FY09, recorded sharp deceleration thereafter in the wake of persistent global economic slowdown. India's real GDP grew 6.7% during Financial Year (FY) 09 as compared with

9% during the corresponding period of FY08. Though India's growth trajectory has been impacted both by the financial crisis and the global economic downturn, the structural drivers of the Indian economy continue to be intact, sustaining overall growth at a level much higher than most other economies in the world. Indian economy estimated to have realized the growth rate of 7.7% per annum in 2009/10.(according to World Bank report).Projection for year 2010/11 and 2011/12 is kept at 8.5% and 9.5% respectively(World bank revised it projection on 7 July 2010).

INDIAN BROKING INDUSTRY

1. India in Global Markets

The stature and significance of India is growing in the world capital markets. India is not only attracting greater interest from world markets, but is also assuming increasing importance in global finance.

 India is a major recipient of foreign institutional flows amongst the emerging

markets.Since the opening up of domestic stock markets to foreign investors,

cumulative net FII investments reached Rs 517 billion by 2008 end

 India is major destination of private equity flows into the emerging markets

 India was host to the annual meetings/conference of the World Federation of

Exchanges (2005) and International Organization of Securities Commission

(IOSCO) (2007)

 India emerged a trillion dollar market capitalization market in 2007,and was

among the top 10 stock exchanges in the world in terms of market capitalization

 India is amongst the top fifteen stock exchanges in the world in respect of equity

turnover

 India emerged as a leading player in commodities futures market

 India is amongst the top five in the number of transactions

 India is among the top five in respect of volume traded in Stock Index Futures and

Stock Futures

 India is one of the few markets with extensive dematerialization of shares

 India‟s T+2 securities settlement cycle is at par with the global standards  Indian stock markets have the largest number of listings, with trading taking place

in about 2,500-3,000 stocks

 India‟s most popular stock index (Sensex) is constructed on the basis of full float

methodology, one of the firsts in the Asian region and a global standard

 Indian market indices such as Sensex and CNX Nifty are listed in foreign

exchanges for trading as ETFs.

The year that was (2008)…

 Secondary market trading volumes down 33% YoY

 FII outflows of ~USD 12 billion

 Nifty down ~36%

 Advisory transactions stable though some ground lost

 PE deals had fallen to almost half

 ECM activity down ~90%

 DCM relatively stable, though activity level were lower in second half of the

FY08 due to liquidity crunch and counterparty fears

The year that was (2009)…

 Global risk aversion is unwinding and Confidence levels returning, being

reflected in performance of the indices

 Liquidity and credit flows improving

 Political stability and India re-rating

 FII and Domestic Flows resuming, USD 7 billion FII inflow in April & May

 Secondary volumes showing early signs of uptrend,average daily volumes of Rs

800 billion vs. 620 billion in previous year. Recent trends (2010)

 Industrial Production Index has increased by 66%, more than expected

 But high inflation has eroded the real value of return from investment

Euro zone crisis due to high debt-GDP ratio in most of countries had been given number of corrections to India stocks market because domestic markets‟ mood depends on what happen in Nikkei, SGX Nifty, Hang Sang and other south east countries markets and later in mid-day time when European markets open different trends are observed in domestic markets which reflect news in Europe.

2. Capital Markets

Index Movement

The BSE Sensex saw an unprecedented swing in Calendar Year (CY) 08 - from 20,873 in

January 2008 to 8,451 in November 2008. The key negatives that drove down Indian markets were weakness in global financial markets, slowdown in the domestic economy, tight monetary policy in 1 HFY09, and heavy selling by Foreign Institutional Investors

(FII). All these factors contributed to a series of large downgrades in corporate sector earnings. Another highlight of FY09 has been a 27% depreciation in the Indian rupee v/s the US dollar, which has also had a negative impact on earnings. In FY 2009-2010 index had regained the momentum by moving from 3180 level to 5200 level with 64 % increase which has enhanced retail investors‟ confidence that the market has attained new support level of 5100 and there is expectation of having primary trend in upward direction. But over last 3 months of from April to June the market is flat at end with both bull and bear moods.

FII & MF Activity in Equity Markets

FY09 was the first fiscal in India's history when FIIs were net sellers in Indian equities; secondary market FII outflows for the year were Rs. 479 billion. Interestingly, FY08 was the year of record net FII inflows of Rs. 517 billion. However, mutual funds continued to be net buyers for the sixth consecutive year. In FY09, mutual funds were net buyers to the tune of Rs. 66 billion, which is a 52% drop from Rs. 137 billion of net buying in

FY08.FY10 has reported Net FII inflow to domestic market of $25 billion.

600 500 400 300 200 100 0 FII -100 -200 -300 -400 -500 FY03 FY05 FY07 FY09

3. Broking Industry

Equity Market Volumes:

The average daily equity market volumes for FY09 were Rs. 612 billion, down 16% from

Rs. 726 billion in FY08. However, during the six years beginning FY03, the year when cash and derivatives were fully active on both the exchanges, total market volumes have grown by 50% compounded annually. Indian equity brokerage turnover has been growing at more than 30% CAGR since FY1999-2000 primarily attributed to the growth in trading turnover in the derivative segment, which commenced operations in FY00-01 and now accounts for almost ~75% of total turnovers. During this period, volumes in the derivatives and cash segments have grown at a compounded annual growth rate (CAGR) of 72% and 27%, respectively. The notable trends in customer segmental volume mix that influence market volumes are as follows:

1. The contribution of retail volumes has declined from 61% in FY08 to 55% FY09;

the retail contribution ratio has been more volatile than the other two market

segments.

2. The contribution of institutional volumes, i.e. volumes from FII and domestic

institutional investors (DIIs) such as mutual funds, banks and insurance

companies has remained stable at 15% for FY08 and FY09.

3. The contribution of proprietary volumes, which include arbitrage and other

proprietary volumes of stock brokers, has increased from 24% in FY08 to 30% in

FY09.

900 800 700 600 500 400 BSE 300 200 100 0 FY03 FY05 FY07 FY09

Source: NSE & BSE

Segmental mix of total volumes (NSE & BSE combined)

2007-08 2008-09 PROPRI FII PROPRI FII ETARY 10% DI ETARY 11% DI 30% 5% 24% 4%

RETAIL RETAIL 61% 55%

Source: NSE & BSE

With start of 2nd regime of UPA government, government proposed the disinvestment of

PSUs was put off due to persistence of volatility in the market. It is said that domestic broking industry reported growth rate of 66 % in last quarter of FY09-10(42 % on year to year basis). This growth was aided by increase in stocks‟ price, global easing Challenging operating environment may speed up industry’s consolidation…

Indian equity brokerage industry has been in the consolidation phase with the top brokers increasing their market share on the back of their market reach and financial strength. In current weak operating environment could speed up the consolidation if the market turmoil continues for long as small brokers may then find it difficult to sustain their profitability.Large brokerage houses have adequate cushion of capital for further expansion of their branch network while absorbing any losses in stressful times.

Edelweiss, a leading investment banking company acquired Anagram Capital for Rs 164 crores in January 2010 to increase it retail broking base. With this acquisition Edelweiss will have 137 new branchs and 1300 sub brokers and at last 180000 new clients.

Market Size and Characteristics

1. Market Structure

Indian securities market is fairly large as compared to several other emerging markets.

The Institutional Structure of Indian Stock market.

Market Intermediaries 2008

Stock Exchanges(Cash Market) 19

Stock Exchanges(Derivatives Market) 2

Brokers(Cash Segment) 9487

Corporate Brokers (Cash Segment) 4190

Sub-brokers (Cash Segment) 44074

Brokers(Derivatives) 1442

2. Market indicators

Market Capitalization(Rs billion)

As at End-March NSE BSE 1997 4193.67 5051.37

1998 4815.03 6302.21

1999 4911.75 6195.32

2000 10204.26 9128.42

2001 6578.47 5715.53

2002 6368.61 6122.24

2003 5371.33 5721.97

2004 11209.76 12012.06

2005 15855.85 16948.28

2006 28132.01 30221.69

2007 33673.50 35450.41

2008 48581.22 51380.14

2009 47019.23 35869.86

2010 15292.53 13998.98

Performance Highlites(2010)

Religare Enterprises Ltd.

Segment sales Rs crore

Financial Advisory Services 11.67

Investment Operations .80

Industry Profile

While regulation and reforms have made major improvements in the quality of the equity markets in India, its rapid growth and development are largely due to strong and efficient market intermediation.The robustness of the Indian markets today is attributable to a healthy blend of the quality of market Structure and efficient intermediation.Even as several countries are instituting procedures to commence.Equity derivative markets,India ranks amongst the top five countries globally in this segment, in less than five years of its introduction. This is an example of the proactive and progressive nature of the Indian brokerage industry

In the last decade,the Indian brokerage industry has undergone a dramatic transformation.From being made of close groups,the broking industry today is one of the most transparent and compliance oriented businesses. Long settlement cycles and large scale bad deliveries are a thing of the past with the advent of T+2 ( Trading day + 2 days) settlement cycle and dematerialization.Large and fixed commissions have been replaced by wafer thin margins, with competition driving down the brokerage fee,in some cases, to a few basis points.

There have also been major changes in the way business is conducted.Technology has emerged as the key driver of business and investment advice has become research based.At the same time, adherence to regulation and compliance has vastly increased.The scope of services have enhanced from being equity products to a wide range of financial services.Investor protection has assumed significance,and so has providing them with education and awareness.Greater need for capitalization has induced several firms to access the capital market,foreign firms are showing increasing interest in taking equity stakes in domestic broking firms.

Major developments in equity brokerage industry in India:

1. Corporate memberships

There is a growing surge of corporate memberships (92% in NSE and 75% in BSE), and the scope of functioning of the brokerage firms has transformed from that of being a family run business to that of professional organized function that lays greater emphasis on observance of market principles and best practices. With proliferation of new markets and products, corporate nature of the memberships is enabling broking firms to expand the realm of their operations into other exchanges as also other product offerings.Memberships range from cash market to derivatives to commodities and a few broking firms are making forays into obtaining memberships in exchanges outside the country subject to their availability and eligibility.

2. Wider product offerings

The product offerings of brokerage firms today go much beyond the traditional trading of equities. A typical brokerage firm today offers trading in equities and derivatives, most probably commodities futures, exchange traded funds, distributes mutual funds and insurance and also offers personal loans for housing, consumptions and other related loans, offers portfolio management services, and some even go to the extent of creating niche services such as a brokerage firm offering art advisory services. In the background of growing opportunities for investors to invest in India as also abroad, the range of products and services will widen further..

3. Greater reliance on research

Client advising in India has graduated from personal insights, market tips to becoming extensively research oriented and governed by fundamentals and technical factors.Vast progress has been made in developing company research fundamental analysis. The research and advice are made online giving ready and real time access to market research for investors and clients, thus making research important brand equity for the brokerage firms.

4. Accessing equity capital markets

Access to reliable financial resources has been one of the major constraints faced by the equity brokerage industry in India since long. Since the banking system is not fully integrated with the securities markets, brokerage firms face limitations in raising financial resources for business and expansion. With buoyancy of the stock markets and the rising prospects of several well organized broking firms, important opportunity to access capital markets for resource mobilization has become available. The recent past witnessed several leading brokerage firms accessing capital markets for financial resources with success.

5. Foreign collaborations and joint ventures

The way the brokerage industry is run and the manner in which several of them pursued growth and development attracted foreign financial institutions and investment banks to buy stakes in domestic brokerage firms, paving the way for stronger brokerage entities and possible scope for consolidation in the future. Foreign firms picked up stake in some of the leading brokerage firms, which might lead to creating of greater interest in investing in brokerage firms by entities in

India and abroad.

6. Specialized services/niche broking

While supermarkets approach are adopted in general by broking firms, there are some which are creating niche services that attract a particular client group such as day traders, arbitrage trading, investing in small cap stocks etc, and providing complete range of research and other support to back up this function.

7. Online broking

Several brokers are extending benefits of online trading through creation of separate windows.

Some others have dedicated online broking portals. Emergence of online broking enabled reduction in transaction costs and costs of trading. Keen competition has emerged in online broking services, with some of these offering trading services at the cost of a few basis points or costs which are fixed in nature irrespective of the volume of trading conducted. A wide range of incentives are being created and offered by online brokerage firms to attract larger number of clients.

8. Compliance oriented

With stringent regulatory norms in operation, broking industry is giving greater emphasis on regulatory compliance and observance of market principles and codes of conduct. Many brokerage firms are investing time, money and resources to create efficient and effective compliance and reporting systems that will help them in avoiding costly mistakes and possible market abuses. Brokerage firms now have a compliance officer who is responsible for all compliance related aspects and for interacting with clients and other stake holders on aspects of regulation and compliance.

9. Focus on training and skill sets

Brokerage firms are giving importance and significance to aspects such as training on skill sets that could prove to be beneficial in the long run. With the nature of markets and products becoming more complex, it becomes imperative for the broking firms to keep their staff continuously updated with latest development in practices and procedures. Moreover, it is mandated for certain types of dealers/brokers to seek specific certification and examinations that will make them eligible to carry business or trade.

Greater emphasis on aspects such as research and analysis is giving scope for in-depth training and skills sets on topics such as trading programs, valuations, economic and financial forecasting and company research.

10. From owners to traders

A fundamental change that has taken place in the equity brokerage industry, which is a global trend as well, is the transformation of broking from owners of the stock exchange to traders of the stock market. Demutualization and corporatization of stock exchanges bifurcated the ownership and trading rights with brokers vested only with the later and ownership being widely distributed. Demutualization is providing balanced welfare gains to both the stock exchanges and the members with the former being able to run as corporations and the latter being able to avoid conflict of interests that sometimes came as a major deterrent for the long term growth of the industry.

Emerging challenges and outlook for the brokerage industry.Brokerage firms in India made much progress in pursuing growth and building professionalism in operations. Given the nature of the brokerage industry being very dynamic,changes could be rapid and so as the challenges that emerge from time to time. A brief description on some of the prospects and challenges of the brokerage firms are discussed below.

11.Fragmentation

Indian brokerage industry is highly fragmented. Numerous small firms operate in this space.

Given the growing importance of technology in operations and increasing emphasis on regulatory compliance, smaller firms might find it constrained to make right type of investments that will help in business growth and promotion of investor interests.

12.Capital Adequacy

Capital adequacy has emerged as an important determinant that governs the scope of business in the financial sector. Current requirements stipulation capital adequacy in regard to trading exposure, but in future more tighter norms of capital adequacy might come into force as a part of the prudential norms in the financial sector. In this background, it becomes imperative for the brokerage firms to focus on raising capital resources that will enable to give continuous thrust and focus on business growth.

13.Global Opportunities

Broking in the future will increasingly become international in character with the stock markets being open for domestic and international investors including institutions and individuals, as also opportunities for investing abroad. Keeping abreast with developments in international markets as also familiarization with global standards in broking operations and assimilating major practices and procedures will become relevant for the domestic brokerage firms.

14.Opportunities from regional finance

Regional economic integration such as that under the European Union and the ASEAN have greatly benefited businesses in the individual countries with cross border opportunities that helped to expand the scope and significance of the business. Initial measures to promote South

Asian economic integration is being made by governments in the region first at the political level to be followed up in regard to financial markets. South Asian economic integration will provide greater opportunities for broking firms in India to pursue cross border business. In view of several of common features prevailing in the markets, it would be easier to make progress in this regard.

15. Product Dynamics

As domestic finance matures and greater flow of cross border flows continue, new market segments will come into force, which could benefit the domestic brokerage firms, if they are well prepared. For instance, in the last three to four years, brokerage firms had newer opportunities in the form of commodities management, mutual funds etc, and as the market momentum continues, broking firms will have an opportunity to introduce a wider number of products.futures,distribution of insurance products,

16. Competition from foreign firms

Surging markets and growing opportunities will attract a number of international firms that will increase the pace of competition. Global firms with higher levels of capital, expertise and market experience will bring dramatic changes in the brokerage industry space which the local firms should be able to absorb and compete. Domestic broking firms should always give due focus to emerging trends in competition and prepare accordingly.

17. Investor Protection Issues of investor interest and protection will assume centre stage. Firms found not having suitable infrastructure and processes to ensure investor safety and protection will encounter constraints from regulation as also class action suits that investors might bring against erring firms. The nature of penalties and punitive damages would become more severe. It is important for brokerage firms to establish strong and streamlined systems and procedures for ensuring investor safety and protection.

Objective of study

Each research study has its own specific purpose. It is like to discover to Question through the application of scientific procedure. But the main aim of our research to find out the truth that is hidden and which has not been discovered as yet. Our research study has following objectives:-

Primary Objective: -

To know about the competitive position of the Religare securities in competitive market.

Secondary Objective: -

1. To know the market share of different players in Share Market.

2. To access how Religare securities is better than others competitors.

3. To check satisfaction level of customers at Religare .

4. Make economics decisions in capital market.

SCOPE

There are various scopes for Religare Ltd. which I have found by this study such as:

 Many people are now eying towards investment and are ready to invest their money

which is a very good sign for Religare Ltd. to increase the database of their company by

winning the faith of different investors.

 Slowly and slowly, Religare is increasing their goodwill in the market.

 Religare is having skilled and experienced workforce as compare to their competitors.

 Religare is having high percentage of accuracy as compare to their competitors.

 Religare gives various facilities to its customers such as different kind of reports,

exposure, free online fund transfer etc.

Research Methodology

Research Design:

Research design means adopting that type technique of research which is most suited for the research and study of the problem. For the study and the research of the problem proper material has to be selected and collected for the investigation.

“A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure.”

Nature of Research:

In this project have undertaken both quantitative & qualitative type of study.

RESEARCH DESIGN

The research design adopted in this study is Descriptive research design.A descriptive research design is the one which is description of the state of affairs as it exists at present. It includes survey and fact finding enquiries of different kinds. The researcher has no control over the variables. The researcher used this research design to find out the respondents attitude and their satisfaction level.

Type of the questions:

The questions in the questionnaire asked to the visiting customers of Religare Securities

Ltd, are Straight Forward and Limited Probing. Type of the Questionnaire:

The questionnaire in this project report is straight forward and formalized.

Type of Analysis:

The analysis done in this particular project report is statistical.

Sources of Data a. Primary Data:

The Primary data are those data which are collected fresh and for the first time and thus happen to be original in character. The primary data that was collected through interview conducted in Regional Branch with daily visiting customers. The primary data sources include copies of questionnaire and data of their respective responses. b. Secondary Data:

The secondary data are those which have already been collected by someone else and which have been passed through the statistical process.

Secondary data was collected through company websites.

Some of the web sites http://www.religaresecurities.com/ and some others like.

Primary Data Collection

Research Technique: As the researcher, I adopted survey method as a research technique for this particular project report.

Contact Method:

I as a researcher interviewed the respondents through questionnaires

Sampling Plan a) Population:

The population covered in this project report refers to the existing (Office Coming) customers of Regional Office, who have their trading and deemat A/c with Religare

Securities Ltd. b) Sample Size

The sample size undertaken by me for this particular project report is 100 respondents. c) Sample Element

The respondents contacted and interviewed in this project report are all from different domain some of them were Businessmen, High Net-worth Investors, Proprietors, even

Students also invest in Share Market. d) Sample Extent As a researcher, I conducted this survey only for the customers in Regional Office of

Religare Securities, Pune.

e) Sample Duration

The survey was undertaken for two months.

f) Research Instrument:

Questionnaires containing both open ended and close ended questions were used as a

research instrument in this particular project report.

Data Analysis and Interpretation

The data after collection has proposed & analyzed in accordance with the outline laid down for the purpose at the time of developing the research plan.

The data collected in the stated manner tabulated according to the corresponding variables. The table thus prepared were analyzed & interpreted to draw the meaning, out of the study.

1) Do you know about investment options available?

knowledge

no 20%

yes 80%

TOTAL 100

COMMENT

Today scenario is changed so that most area covered by the securities and commodity market. It is 24% of the total population.

2) Most preferable investment scenario.

investment scenario

4% 4% 6% 24% shares 10% mutual funds bonds

14% banks 20% real estates insurance 18% commodity market others

COMMENT

Only 80% people know the exact meaning of investment. Because of remaining 20% take his/her residential property as an investment. According to law purpose this is not an investment because of it is not create any profit for the owner.

3 Do you have any knowledge of share markets?

knowledge

10%

27% complete 63% nil partial

COMMENT

On that basis, we conclude that 27% people know nothing about the securities investments and

63% people have partial knowledge about it, so, some promotional activities are required for increasing the awareness about security market

4.Do you have any de-mat & trading account?

ACCOUNTS PERCENTAGE

Yes 75

No 25

TOTAL 100

COMMENT

Only 75% respondents have de-mat and trading account and remaining 25% says no because they don‟t know why shares move up and down.

accounts percentage

25%

yes no 75%

5. If you invested in Share Market, what has been your experience? options %AGE

Satisfactory returns received 20

Burned fingers 6

Unsatisfactory results 8

No Results 66

TOTAL 100

options

22%

12% satisfactory returns 66% unsatisfacctory results no results

6. In which company you have your demat account?

(a) India Infoline

(b) India Bulls

(c) Kotak

(d) Religare

(e) ICICI direct

(f) Share khan

(g) Others

ANALYSIS:

Among these 32 people most of them have their demat account with ShareKhan and Indiabulls.

Thus these two are Religare‟s biggest competitors. Also ICICIDirect gives a good competition to Religare. These brands have a good brand recall as compared to Religare.

9. Do you pay AMC (Annual Maintenance Charge)?

(a) Yes

(b) No

ANALYSIS: A good percentage of people give the annual maintenance charge to the company. Religare can have the advantage of attracting their customers as they don‟t charge the AMC on its brokerage plans and which will work to generate sales.

10. How much Brokerage do you pay on Intraday?

(a) (0.01 – 0.02) %

(b) (0.02 – 0.03) %

(c) (0.03 – 0.04) %

(d) (0.04 – 0.05) %

(e) 0.05 % or more

ANALYSIS:

It can be seen that the companies are charging brokerage according to their own means. So, the companies are creating biasness between the customers. Even if the customers portfolio is the same then also the brokerage may vary from the person to person. So, religare has the best feature of providing less brokerage and according to the customers wants.

11. How much Brokerage do you pay on Delivery?

(a) (0.1 – 0.2) %

(b) (0.2 – 0.3) % (c) (0.3 – 0.4) %

(d) (0.4 – 0.5) %

(e) 0.5 % or more

ANALYSIS

Here also you can see that the long term investors have to give brokerage according to what the company wants. So, here also the biasness is created in the mind of the customers. So, Religare got a great opportunity to attract the customers by giving the brokerage plans according to what the customer want.

12. Are they getting the good services?

(a) Yes

(b) No

ANALYSIS:

It can be seen from the observations that there are customers who are not satisfied by the services given by the brokerage companies can be converted by providing better services to them. Sometimes even if the customers have the same or more investment then also, he is getting fewer services than the other one. So, Religare can convert them by providing better services to them.

Factors responsible for selection of Religare

N=100

Satisfaction Level

Ranking of the Services

Various kind of problems faced by the Respondents

N=100

RELIGARE ENTERPRISES LTD

Religare Enterprises Limited (REL) is a global financial services group promoted by the

Ranbaxy group.

The company was originally incorporated as Vajreshwari Cosmetics Private Limited on January

30, 1984.

The status of the Company was changed to a public limited company by a special resolution of the members dated July 14, 2006.

ISO 9001:2000 certified company.

Religare is an emerging markets financial services group with a presence across Asia, Africa,

Middle East, Europe, and the Americas. In India, Religare‟s largest market, the group offers a wide array of products and services including broking, insurance, asset management, lending solutions, investment banking and wealth management. With 10,000-plus employees across multiple geographies, Religare serves over a million clients, including corporate and institutions, high net worth families and individuals, and retail investors.

History and background

RELIGARE Securities Ltd. (RS L) was a wholly owned subsidiary of RELIGARE Financial

Services Ltd . (RFSL), a Company promoted by the late Dr.Parvinder Singh, Ex-CMD of

Ranbaxy Laboratories Ltd .

The primary focus of Religare Securities Ltd . is to cater to services in Capital Market

Operations to Institutional Investors . The Company is a member of the National Stock Exchange

(NSE) and O TCEI . The growing list of financial institutions with whom RSL is empanelled as approved Broker is a reflection of the high levels of services maintained by the Company .

REL operates from seven domestic regional offices, 43 sub-regional offices, and has a presence in 498* cities and towns controlling 1,837* business locations all over India.

Religare has grown rapidly from what was largely equity trading company into a diversified financial services company operating through its 11 subsidiaries .

As on June 30, 2008, Religare has operations at 1,575 locations across 465 cities and towns and a large management team leading group of over 9,500 employees .

Recently acquired Hichens, Harrison & Co. (³Hichens´), one of the oldest broking firm in

London, for a sum of GBP 55 .5 million . f Religare and extend its geographical reach to London, South Africa, Argentina, Brazil, Dubai, Qatar,

Singapore, Malaysia and Indonesia.

In India Religare¶s geographical distribution is shown as follows:

Diversified Businesses: High Growth Areas-:

Religare retail spectrum

 Equity trading,

 Commodities trading,  Online investment portal,

 Personal financial services,

 Loans and insurance solution.

Religare wealth spectrum

 Wealth management,

 Portfolio management services,

 Arts initiatives,

 Film fund.

Religare institutional spectrum

 Institutional broking services,

 Investment banking,

 Insurance advisory.

Religare other services

 Asset management-mutual fund,

 Life insurance,

 Private equity fund.

Retail spectrum Religare is a diversified financial services group of India offering a multitude of investment options.

Equity Trading

Trading in Equities with Religare truly empowers you for your investment needs. We ensure you have a superlative trading experience through

 A highly process driven, diligent approach

 Powerful Research & Analytics and

 One of the "best-in-class" dealing rooms

Commodities Trading

Religare Commodities Limited (RCL), a wholly owned subsidiary of Religare Enterprises

Limited was initiated to spearhead Exchange based Commodity Trading. As a member of

NCDEX, MCX and NMCE, RCL, present in 529 locations provides options in both agri and non-agri commodities for Exchange based commodity trading backed by incisive dedicated research.

Online Investment Portal Religare Online is your single gateway for all your financial needs. Now you not just trade online in Equities, Commodities, apply for IPOs, invest in Mutual Funds, buy Insurance, but also get Trade Rewards each time you invest online with our 360 degree portal.

Personal Financial Services

Today, more and more people look up to ways and means which can fulfill their financial aspirations such as Savings, Retirement planning, Tax planning & Wealth planning, etc. All this coupled with multiple and cut throat competitive offerings makes it very difficult for an individual to come to a decision and this leads to the search of a partner who can help an individual understand the complex investment instruments and make the best use of them to meet his/her short-term and long-term financial objectives.

Loans

Structurally all business are operated through various subsidiaries held through the holding company Religare Enterprises Limited. One such wholly owned subsidiary of REL is Religare

Finvest Limited registered with the Reserve Bank of India as a Non-Banking Finance Company

(NBFC) and is a Member of CDSL.

Insurance Solutions

Religare with one of the largest retail networks in the country offers a complete range of insurance solutions though its 100% subsidiary company, Religare Insurance Broking Limited

(RIBL). The company holds a composite broker's license operating in the Life, General and

Reinsurance domains.

Wealth spectrum

To provide customized wealth advisory services to high net worth individuals (HNIs), Religare offers an exceptional selection of investment opportunities, in every asset class. Our market knowledge and formidable resources facilitate wealth acceleration, diversification and capital preservation.

Religare operates its wealth management business in partnership with Macquarie through the joint venture - Religare Macquarie Wealth Management Limited (a 50:50 joint venture). The JV is a combination of strengths - Macquarie's strong global expertise with Religare's strong local insights. The new brand - Religare Macquarie Private Wealth shall strive to manage, grow and preserve the wealth of discerning Indian HNIs.

Religare Macquarie Private Wealth draws strength and its core essence from the values of

Religare's "Diligence" and Macquarie's "Forward Thinking"

Portfolio Management Services (PMS)

Religare offers PMS to address varying investment preferences. As a focused service, PMS pays attention to details, and portfolios are customized to suit the unique requirements of investors.Religare PMS currently extends six portfolio management schemes, viz Monarque, Panther, Tortoise, Elephant, Caterpillar and Leo. Each scheme is designed keeping in mind the varying tastes, objectives and risk tolerance of our investors.

Religare schemes

Monarque

The portfolio aims at the ultra HNI category and is structured to provide higher returns by taking aggressive positions across sectors and market capitalization.

Panther

The Panther is suitable for the "High Risk High Return" investor with a strategy to invest across sectors.

Tortoise

The Tortoise is suitable for the "Medium Risk Medium Return" investor with a strategy to invest in companies which have consistency in earnings, growth and financial performance.

Elephant

The is suitable for the "Low Risk Low Return" investor with a strategy to invest in blue chip companies, as these companies have steady performance and reduce liquidity risk in the market.

Caterpillar

The Caterpillar is suitable for investors with a high risk appetite.

Leo Leo is aimed at retail customers and structured to provide medium to long-term capital appreciation by investing in stocks across the market capitalization range. This scheme is a mix of moderate and aggressive investment strategies.

Arts Initiative

Today's complex market structures have spun art out of the cocoon of mere aestheticism into a more rooted role as a recognized financial asset, a derivative with immense powers of wealth generation, equal to those of any brick and mortar industry. Given this base, it is now for the greater public-driven organizations concerned with the well being of art, to ensure that all the diverse dimensions of art are nurtured and given the right exposure, so that art permeates more completely into the societal fabric and enriches a wider consciousness.With this vision in mind,

Religare Enterprises Limited last year launched Religare Arts Initiative Limited (RAI), a wholly owned subsidiary. So, while most galleries, auction houses and art funds operate art businesses,

Religare Art Initiative will conversely leverage business for art.

Religare Arts Initiative is committed to the business of arts, the arts as an alternate investment option and is a corporate champion for the cause of Art. The gallery is the first physical manifestation of this initiative.

The Gallery Religare Arts Initiative has committed to creating a 360 degree platform for the Arts. As a starting sequel to this commitment we shall provide a platform for artists of all ages, genres and statures.

To nurture talent, RAI will establish world-class gallery space(s) for shows and exhibitions of works of artists across the board. These gallery spaces shall double-up as venues for seminars, symposia, workshops and other interactions on art issues. Art - Artist – public interactions in these spaces will be documented to improve public consciousness. The first has been launched in

New Delhi. Our overarching commitment, passion and vision in this space is well and truly symbolized and expressed through our identity arts-i. The arts gallery was opened on Oct 1,

2008 with its first exhibition showcasing 16 Contemporary and emerging artists.

Film Fund

Religare Enterprises Limited and Vistaar Entertainment Ventures Private Limited launched

India‟s first ever film fund - Vistaar Religare Film Fund (VRFF) for the Film/Media business.

Religare and Vistaar bring to you an opportunity to invest and partner with the ever evolving and recession-proof medium of films, through VISTAAR RELIGARE FILM FUND - India's first

SEBI-approved venture capital fund in this sector. The Fund would be focusing on identifying right opportunities in the film industry and in turn - produce challenging, entertaining, culturally- relevant cinema as well as growth and returns for all its investors.

Institutional spectrum

Institutions, Banks and the Corporate have their own unique investment needs. Religare recognizes this and strives to offer a superlative investment experience for institutions and FIIs globally and would like to be seen as their preferred investment gateway.

Institutional spectrum includes

 Institutional Broking Services

 Investment Banking

 Insurance Advisor

Institutional broking services

With the mission to institutionalize and implement a process driven approach, the Institutional

Broking Services at Religare cater to the investment needs of leading corporate houses and institutions. Backed by incisive research, this division would like to be seen as a one stop investment gateway and knowledge repository for its clients, servicing their unique and sophisticated needs.

Our Institutional Broking desk is currently dealing with almost all the leading client groups, like

Mutual Funds, FIIs, Banks and Insurance Companies.

The Religare Edge:

•Highly skilled, dedicated dealing, research and sales teams •Dealing capabilities on the NSE, BSE and in the cash and derivatives segment

In-depth, detailed and insightful coverage across 16 diverse sectors and 153 companies that extends to

 Economic Research

 Result Expectations

 Derivative Strategies

 IPO Research

 Mutual Fund Research

 Special reports like impact of credit policy, budget, etc.

•Access to international expertise and global practices established in mature financial markets

•An international distribution network servicing the needs of institutions & corporate houses through a large global network and with the ability to execute globally

Investment Banking

Our Investment Banking business offered through Religare Capital Markets Limited (RCML), a wholly owned subsidiary of the holding company, Religare Enterprises Limited, deals in merchant banking, transaction advisory and corporate finance servicing the Corporate,

Entrepreneurs and Investors.Supported by a dynamic team of professionals with proven track record, our Investment Banking division is backed by in-depth understanding of the regulatory systems. With our expertise, we create customized capital structures that are aligned to the customers, business plan and stakeholder objectives.Through its diligent processes in Investment

Banking, Religare wishes to partner with the midcaps, be it for Transaction Advisory services,

Private Equity placements, Debt Syndication or even entering the Primary Market, ECB, FCCB,

GDR/ADR, etc. Religare's Investment Banking is a one-stop shop for all these services. At

Religare, our constant endeavor is to forge strong relationships and our innovation and uncompromising ethical standards that have enabled us to develop global distribution & execution capabilities.

The Religare Edge

•Excellent track record in deal closing and capital raising

•End-to-End solution delivery capability and in-depth understanding of the regulatory systems.

•Global presence with offices operating in nine countries besides India.

•Pan India presence in 1550 locations across more than 460 cities & towns.

•Powerful research and analytics supported by a pool of highly skilled Research Analysts

•Ethical business practices

•Part of a large diversified Indian trans-national promoter group.

Insurance advisory

Religare Insurance Broking Limited (RIBL), a Religare Enterprises Limited venture is one of

India's leading insurance broking firms, with one of the largest retail networks in the country. The company holds a composite broker's license operating in the Life, General and Reinsurance domains.

RIBL not only provides customized solutions to individual clients but also to some of the leading corporate houses and institutions across the country.Our team across the country is driven by the core philosophy of creating and delivering value to its customers. Our strengths are a team of passionate professionals, a robust IT infrastructure and strong risk analysis teams adept at identifying & analyzing your risks and providing you with tailor made solutions.

Value Proposition

Presence Pan India foot print

Strong Domain Expertise Rich domain knowledge and Industry experts

Comprehensive Risk Portfolio Management Expertise to meet all your Insurance needs

Flexibility Market understanding, proactive and customer

centric

Stability Part of a large diversified Indian trans-national

group with presence in over 1550 locations

across more than 460 cities & towns in India

and globally across 10 countries. Infrastructure Human, technical, physical presence, CRM

Quality Best business practices and highest quality

service

Strategic Partnerships Alliance with global and national players to get

you the best deals

Religare Service Offerings-:

corporate -general -group

risk analysis

individual -life -general

claims management

worksite service & marketing

reinsurance

human capital consulting

Religare in partnership with Aegon, one of the world's largest life insurance and pension groups, operates its Life Insurance business in India under a Joint venture, Aegon Religare Life

Insurance Company Limited.

This venture is dedicated to build a firm future, both for customers and employees and will continue to balance a local approach with the power of an expanding global operation.AEGON

Religare Life Insurance launched its pan-India multi-channel operations in July, 2008 with over

30 branches spread across India. The business philosophy is to help people plan their life better and also provide high quality advice to customers and offer a superlative overall service experience.

True to its stance of being "Refreshingly Different", powered by innovation, and bringing industry "firsts", AEGON Religare Life Insurance offers policy servicing on the phone via

Interactive Voice Response System (IVR) by issuing the customer a T-Pin for authentication. It is also the first company to include the customer's medical report in the policy kit.

Private equity fund

Milestone, one of India‟s premier independent fund houses and Religare has come together and through the JV has formed an entity, Milestone Religare Investment Advisors Private Limited.

The JV entity aims at making growth stage private equity investment primarily in Education &

Healthcare sectors in India.

Other initiatives Religare has created an alternative career path, keeping in mind the needs, wants and desires of toady‟s woman. Femme Power provides an opportunity for the contemporary Indian woman who strives to strike a balance between work and family life. Femme Power is an independent financial advisory platform managed by women, for women.

The primary focus of Femme Power is to provide a single point of contact from which women across India can access their financial investments and transactions, in addition to providing timely lifestyle tips. Femme Power will serve as a catalyst to address concerns of women about financial security, investment knowledge, health & nutrition, in addition to a range of other issues.

Different branches of religare

Equity trading

Mutual funds

Commodities trading

EQUITY TRADING

Trading in Equities with Religare truly empowers you for your investment needs. We ensure you have a superlative trading experience through -

 A highly process driven, diligent approach

 Powerful Research & Analytics and

 One of the "best-in-class" dealing rooms Further, Religare also has one of the largest retail networks, with its presence in 1837* locations across 498* cities & towns. This means, you can walk into any of these branches and connect to our highly skilled and dedicated relationship managers to get the best services

The Religare Edge

 Pan India footprint

 Powerful research and analytics supported by a pool of highly skilled research analysts

 Ethical business practices

 Offline/Online delivery models

 Single window for all investments needs through you unique Customer Relationship

Number

Equity Trading is possible by:

National Stock Exchange

The National Stock Exchange of India Limited (NSE) is a Mumbai-based Stock Exchange. It is the second largest stock exchange in India in terms of daily turnover and number of trades, for both equities and derivative trading. Though a number of other exchanges exist, NSE and the

Bombay Stock Exchange are the two most significant stock exchanges in India, and between them are responsible for the vast majority of share transactions. The NSE's key index is the S&P

CNX NIFTY, known as the Nifty, an index of fifty major stocks weighted by market capitalization.NSE is mutually owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities. There are at least 2 foreign investors NYSE Euro next and Goldman Sachs who have taken a stake in the NSE. As of 2006, the NSE VSAT terminals, 2799 in total, cover more than 1500 cities across India. In October 2007, the equity market capitalization of the companies listed on the NSE was US$ 1.46 trillion, making it the second largest stock exchange in South Asia. NSE is the third largest Stock Exchange in the world in terms of the number of trades in equities. It is the second fastest growing stock exchange in the world with a recorded growth of 16.6%

PRODUCTS OF RELIGARE

Rally

Rally-Pro

Rally-lite

The above three products Rally, Rally-Pro and Rally-lite are the different ways through which the trading of shares can be done. These products are discriminated on the basis of the medium that they provide to client to buy or sell shares.

Rally

In this product the client is provided a Relationship manager (RM) or Dealer which will guide him to buy or sell shares or when to place an order or when to sell the shares.

This product only allows the client to contact the RM through a phone call. Religare also provide a facility to its clients in which clients can come to the Religare branch where his RM works during the trading hours (i.e.9.30am-3.30pm) so that clients can trade in presence of his

RM.

Charges of opening Demat Account (Product Rally) Intraday

It refers to the condition when shares purchased are sold on the same day before closing of

market

Delivery

It refers to the condition when shares purchased are not sold on the same day of purchase.

Brokerage equity

Intraday(in paisa) Delivery(in paise) Branches(delhi) Demat in Rs. Margin money

5 20 80 500 5000

Rally Pro

This is another product that Religare provide to their clients for trading of shares. The feature of

this product is that this is the software application based product. The clients who opt for this

product must have a computer at their home with internet facility. Rally Pro provides two application software to their clients among which they can choose one.

The two application software‟s are

1)Odin diet

2)Fast trade

Rally-lite

This is another product that Religare provide to their clients for trading of shares. The feature of this product is that this is the Browser based product. The clients who opt for this product can access or can trade from any computer terminal. This product is essential for the clients who doesn‟t have computer at their home.

As Rally-lite is a browser based product there is no need to install any software on the client computer. Client is provided a unique client id and password which is to be entered whenever client wants to access his account for trading purpose or for any other purpose.

Brokerage and Account opening fees:

Religare offers three kinds of accounts as above. Below are detail about fees and activation charges for each account:

1.R-ACE

Account activation charges Rs.299/-.

2.R-ACE Lite Account activation charges Rs.499/-..

3.R-ACE Pro

Account activation charges Rs.999/-.4. All the account comes with free annual maintenance charge.5. All account comes with free DP account.

6.Brokerage at Religare

On the basis of volume and frequency of trading, Religare provide different options for brokerages. On the broader way they divided into three categories:

○Classic Account

Intraday brokerage varies from 0.3% to 0.5%.Delivery brokerage varies from 0.30% to 0.50%..

○Freedom Account

In this payment scheme, investor has to pay a fix amount in advance for Annual Subscription (Rs

4000). This one time payment enable account holder to trade for Rs. 3,00,000 intraday & derivative trading and Rs. 40,000 of delivery based trading for zero brokerage.

○Trump Account

Trump account has two payment options

1. Trump Plus has annual subscription fees of Rs 2,500, Brokerage on Delivery

Trades of 0.25% and Brokerage on Intraday Trades & F&O Trades of 0.025%.

2. Trump Super has annual subscription fees of Rs. 15,000, Brokerage on Delivery

Trades of 0.15% and Brokerage on Intraday Trades & F&O Trades of 0.015%.

Advantages of Religare

•Religare gives interest on unutilized cash when investor is waiting to make next

trade or online investment.

•Religare Allow their investor to trade without having to worry about cash

margin. Investor can get exposure (on cash segment) as high as 20 times for

intraday trades.

•They provide intraday reports and historical charting.

•Lifetime free DP account.

•Varity of fee structure to fulfill need of different type of investors.

DEPOSITORY Religare Securities Limited (RSL) provides depository services to investors as a Depository

Participant with the following-:

1) NSDL (National Securities Depository Limited)

2) CDSL (Central Depository Services (India) Limited)

The Depository system in India links issuers, Depository Participants, Depositories National

Securities Depository Limited (NSDL) and Central Depository Services (India) Limited

(CDSL) and clearing houses / clearing Corporation of Stock Exchanges. These facilitate holding of securities in dematerialized form and securities transactions are processed by means of account transfers.

Religare‟s customer centric account schemes have been designed keeping in mind the investment psychology. With a competent team of skilled professionals, Religare manage over 380,000 accounts and have a dedicated customer care centre, exclusively trained to handle queries from our customers. With their country wide network of branches, investors are never far from

Religare depository services.

Religare’s depository service offers their investors a secure, convenient, paperless and cost effective way to keep track of their investment in shares and other instruments over a period of time, without the hassle of handling physical documents. Investors DP account with Religare takes care of their investor‟s depository needs like dematerialization, rematerialisation, transfer and pledging of shares, stock lending and borrowing. Religare‟s total depository accounts have increased from 14,413 as of march 31, 2005 to 109,

715 as of march 31, 2007 and further to 1,83,690 as of September 31, 2007 and now at present total depository accounts is nearby 3,07,634.

Investors demat account is safe and absolutely is in secure hands, every debit instruction is executed only after its authenticity is established. Religare’s hi-tech in-house capabilities cater to the needs of software maintenance, database administration, network maintenance, backups and disaster recovery. This extra cover of security has gained the trust of their clients.

Religare technova Limited is the holding of the Religare Enterprises that provides solution to technical or software related queries of the clients and it also guard the clients who use internet trading option from different security issues. This raises the trust of the clients in Religare

Securities Limited (RSL)

MUTUAL FUNDS

A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. The mutual fund will have a fund manager that trades the pooled money on a regular basis. The net proceeds or losses are then typically distributed to the investors annually.

Since 1940, there have been three basic types of investment companies in the United States: open-end funds, also known in the U.S. as mutual funds; unit investment trusts (UITs); and closed-end funds. Similar funds also operate in Canada. However, in the rest of the world, mutual fund is used as a generic term for various types of collective investment vehicles, such as unit trusts, open-ended investment companies (OEICs), unitized insurance funds, and undertakings for collective investments in transferable securities (UCITS).

The value of each unit of the mutual fund, known as the net asset value (NAV), is mostly calculated daily based on the total value of the fund divided by the number of shares currently issued and outstanding. The value of all the securities in the portfolio in calculated daily. From this, all expenses are deducted and the resultant value divided by the number of units in the fund is the fund‟s NAV.

COMMODITIES TRADING

Trade pundits are betting big bucks on the commodity trade. And many believe that it would be the next big thing for investors. Surely, bigger than the stocks because globally the commodity trade is about three times the size of equities.

Here‟s a reality check. The Indian commodity market is estimated to be around Rs 11,00,000 crore, which includes agricultural commodities (rice, wheat, soya, groundnut, tea, coffee, jute, rubber, spices, cotton, etc), precious metals (gold and silver), base metals (iron ore, aluminum, nickel, lead, zinc, etc) and energy commodities (crude oil and coal).

Commodity trading in India in India a long history. In fact, commodity trading in India started much before it started in many other countries. However, years of foreign rule, droughts and periods of scarcity and Government policies caused the commodity trading in India to diminish.

Commodity trading was, however, restarted in India recently. Today, apart from numerous regional exchanges, India has three national commodity exchanges namely, Multi Commodity

Exchange (MCX), National Commodity and Derivatives Exchange (NCDEX) and National

Multi-Commodity Exchange (NMCE). The regulatory body is Forward Markets Commission

(FMC) which was set-up in 1953.

Religare Commodities Limited (RCL) is a registered commodity broker (With the Forward

Market Commission) and is a member of the National Commodities and Derivative Exchange

Limited (“NCDEX”), Multi Commodity Exchange of India Limited (“MCX”) and National Multi Commodity Exchange of India Limited (“NMCE”), providing commodity broking services to their retail and wealth spectrum clients.

Globalization of the financial market has led to a manifold increase in investment. New markets have been opened; new instruments have been developed; and new services have been launched.

Besides, a number of opportunities and challenges have also been thrown open. Online

Commodities trading is new as compared to Equity market in India. Mainly three exchanges are involved in online commodities trading MCX, NCDEX & NMCE.

Religare enterprises Ltd offers a wide choice of products for investing in the stock market & commodities market. It allows investing in shares, mutual funds and other financial products.

With Religare Commodity Limited (RCL) one can manage own de-mat & trading account independently.

The depository participant will allow an investor to trade through any broker of his choice registered with the commodities exchanges connected with National Commodities and

Derivative Exchange Limited (“NCDEX”), Multi Commodity Exchange of India Limited

(“MCX”) and National Multi Commodity Exchange of India Limited (“NMCE”).

Religare commodities Ltd (RCL) customers are more satisfied with the quality services. Holding securities in electronic form gives some far-reaching advantages to the investors

Religare securities

Religare Securities Limited (RSL), a 100% subsidiary of Religare Enterprises Limited is a leading equity and securities firm in India The major activities and offerings of the company today are Equity Broking, Depository

Participant Services and Research Services

Religare has a very credible Research and Analysis division, which not only caters to the need of our Institutional clientele, but also gives their valuable inputs to investment dealers.

Religare Securities Ltd. (RSL), a wholly owned subsidiary of Religare Enterprises Limited

(REL), a global financial services group is a market leading securities firm in India. The company offers equity broking services to more than half a million clients using both, offline and online platforms and also offers depository participant services. RSL is a member of the NSE,

BSE, MCXSX, USE and a depository participant with NSDL and CDSL. RSL employs more than 4800 employees and has a wide distribution reach that spans across more than 1500 locations in India.

Vision

“To be the leading emerging markets financial services group driven by innovation, delivering superior value for all stakeholders globally".

Brand identity

Religare is a Latin word that translates as 'to bind together'. This name has been chosen to reflect the integrated nature of the financial services the company offers. Symbol

The Religare name is paired with the symbol of a four-leaf clover. Traditionally, it is considered good fortune to find a four-leaf clover as there is only one four-leaf clover for every 10,000 three-leaf clovers found.

For us, each leaf of the clover has a special meaning. It is a symbol of Hope. Trust. Care. Good

Fortune.

For the world, it is the symbol of Religare.

The first leaf of the clover represents Hope. The aspirations to succeed. The dream of becoming.

Of new possibilities. It is the beginning of every step and the foundation on which a person reaches for the stars.

The second leaf of the clover represents Trust. The ability to place one‟s own faith in another. To have a relationship as partners in a team. To accomplish a given goal with the balance that brings satisfaction to all, not in the binding, but in the bond that is built.

The third leaf of the clover represents Care. The secret ingredient that is the cement in every relationship. The truth of feeling that underlines sincerity and the triumph of diligence in every aspect. From it springs true warmth of service and the ability to adapt to evolving environments with consideration to all. The fourth and final leaf of the clover represents Good Fortune. Signifying that rare ability to meld opportunity and planning with circumstance to generate those often looked for remunerative moments of success.

Hope. Trust. Care. Good Fortune. All elements perfectly combine in the emblematic and rare, four-leaf clover to visually symbolize the values that bind together and form the core of the

Religare vision.

Accent usage

The diacritical tilde mark ( ˜ ) over the letter A in the Religare typeface indicates a palatal emphasis sound of the letter A.

Companies Under Religare Enterprise Limited

(SYMBOL-RELIGARE-EQ, SRIP CODE-532915)

Religare is a global financial services group with a presence across Asia, Africa, Middle East,

Europe and the America .Religare has operation in key financial areas as following

 Religare AMC Ltd.

 Aegon Religare life insurance Co. ltd.

 Religare Macquarie Wealth management Ltd.  Religare securities Ltd.

 Religare commodities Ltd.

 Religare Finvest Ltd.

 Religare insurance broking Ltd.

 Religare Capital Market Ltd.

 Vistaar Religare capital Ltd.

 Religare- milestone Ltd.

Religare has

 Share of 3.74% in equity broking market and 4.78% in commodity broking market.

 Brokerage accounts 40 percent of total revenue in FY2010.

 Presence in 2092 business locations.

 Average daily equity daily turnover of $32.9 billion in Q4FY2010.

 Equity Broking customer base increased to 687064 in Q4FY10.

 Credit rating of Religare Enterprise increased from P1 to P1+ by CRISIL in Jan 2010.

Religare has following plans for next 5 years.  An aggressive plan to increase the number of branches 700 in FY11 and FY12 for

tapping more retail broking demand.

 Investment in Wealth management, asset management and insurance businesses.

 Increase in loan and advances to become one of the leading NBFC.

SWOT ANALYSIS

Strengths of Religare

Second to none  Religare enterprise Ltd is integrated financial services hub.

 Global players with various joint ventures.

 Vistaar Religare film fund, India‟s first film fund.

 A wide geographic reach, growing clients, and a diversified portfolio of

products and services.

 It is a Ranbaxy promoter Group Company.

 Equity Research Team, one of the best in market, which constantly track

the pulse of the market and provide timely investment advice free of cost.

Weaknesses of Religare

Fight within

 The Securities and Exchange Board of India (SEBI) has taken actions (subject to

final orders) against Religare Securities for price manipulation in certain scrips.

 Religare has high debt in its capital.

 Religare‟s stock is relatively volatile.

 Lack of sufficient branch-offices for speedy delivery of services.  Lack of awareness among customers because of non- aggressive promotional strategies

(print media, newspapers, etc).

 Lesser emphasis on customer retention.

Opportunities for Religare

Ready to jump

 Religare can start financial education programs for children studying in 10+2 level which

will give intangible benefits in short term and tangible profit in long term.

 Religare can expand it operation in wealth management as HNI counts are increasing

rapidly.

 Insurance sector is ready to get exploited.

 Demonstrate ethical standards of the company to customer and shareholders/stakeholders.

 Religare should adopt International financial Reporting Standards (IFRS) in preparing

financial reports which will represent greater transparency in working of company to

investors and that will develop strong trust.

 Being aggressive in Currency& interest future can be profitable

 Can easily tap the retail investors with small saving through promotional channels like

print media, electronic media, etc.  More and more small investors are entering into Share Market.

Threats for Religare

Be aware

 Big Public and private banks are entering into stock broking industry who has

large customer base which can be exploited by offering equity based investment.

 Consolidation in the time of recession by other leading broker can be threat to

Religare.

 Direct Market Facility (DMF) could be next exam for every broking firm.

 Crisis in global market, Abrupt flow of FII capital and risk aversion of retail

investors reduce daily turn over in stock market trading.

 Aggressive promotional strategies by close competitors may hamper Religare‟s acceptance by

new clients.

More and more players are venturing into this domain.

MAJOR PLAYERS IN THE REGION

1. Karvy

2. ICICI direct

3. Indiainfoline

4. HDFC security

5. Indiabulls

KARVY

KARVY is a premier integrated financial services provider, and ranked among the top five in the country in all its business segments, services over 16 million individual investors in various capacities, and provides investor services to over 300 corporate, comprising the who is who of

Corporate India. Karvy has a professional management team and ranks among the best in technology, operations and research of various industrial segments.

History of Karvy

The birth of Karvy was on a modest scale in 1981. It began with the vision and enterprise of a small group of practicing Chartered Accountants who founded the flagship company, Karvy

Consultants Limited. They started with consulting and financial accounting automation and carved inroads into the field of registry and share accounting by 1985. Since then, Karvy utilized its experience and superlative expertise to go from strength to strength, to better their services, to innovate, diversify and in the process, evolved as one of India‟s premier integrated financial service enterprise. PRODUCT AND SERVICES OF KARVY GROUP

1. Karvy comtrade.

2. Karvy consultant ltd.

3. Karvy merchant banking.

4. Karvy global services ltd.

ICICI DIRECT

ICICI Web Trade Limited (IWTL) maintains www.icicidirect.com (herein after referred to as the

"Website") whereas IWTL is an affiliate of ICICI Bank Limited and the Website is owned by

ICICI Bank Limited. IWTL has launched and established an online trading service on the

Website.

PRODUCTS AND SERVICES OF ICICI DIRECT

1. Investing in Mutual funds

2. Personal Finance

3. Customer Service Features

4. IPO‟s

5. Margin Trading

6. Margin PLUS Trading

7. Call Trade

8. Trading on NSE/BSE

9. Trade in derivatives

INDIAINFOLINE SECURITY PRIVATE LTD India Infoline.com Securities Pvt. Ltd. is a wholly owned subsidiary of India Infoline.com Ltd and is the stock broking arm of India Infoline.com. The subsidiary was formed to comply with regulatory guidelines. www.5paisa.com is a focused website for online stock market trading.

5paisa.com is a trade name owned by the India Infoline.com group. IILSPL has applied for trading membership of the BSE under Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Rules 1992.

IILSPL is in the business of providing broking services online via the Internet ("E-broking

Services") and has been permitted by the NSE by way of registration permission no:

NSEIL/CMO/INET/1103/2000 dated 03/July/2000, and will be applying for permission to the

BSE, to provide E-broking Services to its clients. IILSPL is a TRADING MEMBER of the

National Stock Exchange of India.

PRODUCT OFFERED BY IILSPL

1. Stock market:- IILSPL deals in stock market by trading in equity and derivatives.

2. Personal finance:- It Deals In Mutual Fund And Insurance.

3. Online Trading :- It provides services in stock and commodity trading (through Internet).

HDFC SECURITY

HDFC security is the subsidiary of HDFC (Housing Development Financial Corporation). www.hdfcsec.com would have an exclusive discretion to decide the customers who would be entitled to its online investing services. www.hdfcsec.com also reserves the right to decide on the criteria based on which customers would be chosen to participate in these services .The present web site (www.hdfcsec.com) contains features of services that they offer/propose to offer in due course. The launch of new services is subject to the clearance of the regulators. i.e. SEBI, NSE and BSE. PRODUCT OFFERED BY HDFC SECURITY

1. Online trading for Resident & Non Resident Indians.

2. Cash-n-Carry on both NSE and BSE.

3. Day trading on both NSE and BSE.

4. Trade on Futures & Options on the NSE.

5. Online IPO's.

6. Telephone-based Broking (Equity & Derivatives).

INDIABULLS SECURITIES LIMITED

Indiabulls Securities Limited was incorporated as GPF Securities Private Limited on June 9,

1995. The name of the company was changed to Orbis Securities Private Limited on December

15, 1995 to change the profile of the company and subsequently due to the conversion of the company into a public limited company; the name was further changed to Orbis Securities

Limited on January 5, 2004. The name of the company was again changed to Indiabulls

Securities Limited on February 16, 2004 so as to capitalize on the brand image of the term

“Indiabulls” in the company name. ISL is a corporate member of capital market & derivative segment of The National Stock Exchange of India Ltd. At present, ISL accounts for approximately 3% of the total daily turnover of the Exchange with 32,359 client relationships and 70 branches spread across the country as of April 30, 2004.

INDIABULLS CREDIT SERVICES LIMITED:- Indiabulls Credit Services has been valued at

Rs. 263 crore with the Rs. 87.6-crore infusion. Indiabulls Credit Services Ltd, the recently formed subsidiary of broking firm, Indiabulls Financial Services Ltd. Faralon Capital, a

San Francisco-based private equity fund, and its affiliates have acquired 33.3 per cent stake for

Rs 87.6 crore. INDIABULLS REAL ESTATE:- Indiabulls through its group companies has entered Indian

Real Estate business in 2005. It is currently evaluating several large-scale projects worth several hundred million dollars. Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital Management, a respected US based investment firm.

PRODUCT OFFERED BY INDIA BULLS

1. Equity & Debt Stock Broking

2. Insurance

3. Commodity trading

4. Depository Services

5. Derivatives Broking Services

6. Equity Research Services

7. Mutual Fund Distribution

8. IPO Distribution

Comparison of Religare Ltd. with different Broking Houses

Religare v/s Indiabulls

gare Ltd. IndiaBulls interest on funding starts on leveraged delivery trades from T+1 day @ 21% p.a, on a daily basis whereas, Religare Ltd. Interest on funding starts on leveraged delivery trades from T+2 day @ 16% p.a. ll be charged for access to a research even if it is trading account holder

Religare v/s ICICI direct

\her shares with the maximum time of T+1 day where in Religare Ltd. it is T+2 day which is known as BTST.

choice of ten different banks.

the ICICI direct to its customers is too slow which creates dissatisfaction among customers

Religare v/s HDFC Securities

 Like ICICI direct, HDFC Securities is also having a slow website interface.

 Broking is the very small unit of HDFC Bank that‟s why proper focus on broking

business is not there.

Religare v/s India Infoline

 Minimum initial margin of Rs.2500/- is compulsory in investor terminal and Rs.5000/- in

trader terminal for all the traders where it is not the same in Religare Ltd.

 Every trader in 5 paisa has to maintain a minimum margin of Rs.1000/- into his/her

account  In 5 paisa, accounting system is manual and also online fund transfer through bank is not

credited instantly.

Limitations of the study

•Time limitation

•Research has been done only in Delhi.

•Companies did not disclose their secrets data and strategies.

•Possibility of Error in data collection.

•Possibility of Error in analysis of data due to small sample size.

FINDINGS

 It was found from the analysis that (62%) of the customers are interested to invest their

saving in the stock market on daily basis. It was found from the analysis that maximum

(33%) of the respondents have invested their savings more than Rs 1,00,000 for share

trading.  It was found from the analysis that (30%) made the selection of their stock broker on

basis of it‟s credit worthiness and trust while (28%) made their choice due to qualitative

services provided by this broking house especially the amount of commission charged by

the share broker for their services.

 It was found that maximum number of respondent are expecting main services of

„Putting orders without delay‟, „Trading time advice/guidance‟ and Facility to see the

margin amount and traded shares at the end of the day‟ from their share broker.

 It was found from the analysis that majority of the respondents i.e. (79%) have not faced

any problem in after sales services from their stock broker and are satisfied with services.

However findings revealed that majority of the customers are finding problems related to

the hidden charges charged by the company and want an immediate remedial solution.

 It was evident from the analysis that a quite significant number of the respondents are

satisfied with services, are not experiencing any time lag while placing an order and will

refer their stock broking house to their friends and other acquaintances.

RECOMMENDATIONS

On the basis of these findings and analysis, It has can be surely said that in stock broking industry, differentiation can become the key to higher revenues. Better service, straight through processing(STP), immediate execution, portfolio services, investment advisors and telephone call centers or branch investment offices are needed to retain customers and to increase the revenue base. As more number of people will get comfortable with internet/technology, broking

(especially online broking) will have a completely new meaning with more fringes coming into the picture and more firms will offer umbrella services to their clients. Thus more of strategies should be undertaken

➢Providing better plans and schemes than our competitors like Sharekhan, Indiabulls, and ICICI direct are providing in terms of brokerage and subscription.

➢Formulation of more corporate schemes for employees of organizations falling under

Religare‟s corporate category.

➢Drafting a website which is both professional and user friendly ➢Associating Religare with Ranbaxy to make it a power brand.

➢Taking Religare from the brand recognition stage to brand insistence stage.

➢Religare should make its brokerage structure more flexible to give a good competition to the investors

➢Some more collaboration with international firms and increasing its outlets not only in India but also outside the world

➢Also, to attract the NRIs so, that to increase its share in the stock exchanges as they provide the largest share in terms of the investment.

I would like to suggest some measures to Religare Ltd. so that they can compete themselves with some top broking house of INDIA.

places such as Delhi and NCR.

s to reach to them. So, Religare must open some new offices in order to retain their existing customers and to attract new customers as well.

Service is the first priority for any customer on which company should focus themselves so that the service should be properly given to the customers. compare to different brokers in order to fetch new customers.

roblems which they are facing which make the customer happy and can give reference numbers which can increase the database of the company.

CONCLUSION

On the basis of the study it is found that Religare securities is better service provider than the other associations because of their timely research and personalized advice on what stocks to buy and sell. Religare. It also provides the information through the Internet and mobile alerts that what IPO‟s are coming in the markets and it also provides its research on the future prospects of the IPO.

Study also concludes that people are not much aware of commodity market and while it‟s going to be biggest market in India. From the above survey and observation it is found that most of the people who are trading in share market belongs to the employee group, next comes the business men, and other class of income people. As the share market value goes on increasing day by day the investor who wants to invest in shares also increased. Trading in online trading firm is as easy as it all delivered with internet and within a few minutes the customers can buy and sell a share which saves time as well as reduction of people work. Hence trading in share market is increasing day by day and investors are ready to invest their investment in share market only.

I got the knowledge about the customer‟s needs and their references for having particular products. The need of customers differs from person to person, areas, locality and occupation.

Customers always want more services by paying less.

BIBLOGRAPHY

WEBSITES: www.religare.in www.nseindia.com www.bseindia.com www.moneycontrol.com

NEWSPAPERS:

HINDUSTAN TIMES

ECONOMIC TIMES

MARKET EXPRESS

BOOKS:

JOURNALS OF RELIGARE

REFERENCES

http://www.religareonline.com

http://religaresecurities.com/trade.asp http://www.hinduonnet.com/businessline/iw/2000/09/03/stories/0703g051.htm http://www.traderji.com/ http://www.ShareKhan.com http://www.indiabulls.com http://www.icicidirect.com http://www.chittorgarh.com/newportal/online-stock-brokers-list.asp www.financialtimes.net http://www.religare.in QUESTIONNAIRE

NAME:

GENDER:

AGE:

OCCUPATION:

ANNUAL INCOME:

1. How much income are you able to save or invest?

(a) 0 - 10%

(b) 10 - 20%

(c) 20 – 30%

(d) 30 – 40%

(e) Others

2. You invest in which of the following financial instruments?

(a) Securities

(b) Mutual fund

(c) Commodities (d) Insurance

(e) Other Instruments

3. Do you invest/interested in stock market?

(a) YES (b) NO

4. Do you have a demat account?

(a) YES (b) NO

5. If yes, which type of demat account do you have?

(a) Online (b) Offline

6. In which company you have your demat account?

(a) India Infoline

(b) India Bulls

(c) Kotak

(d) Religare

(e) ICICI direct (f) Share khan ( g) Others

10.Do you trade in any other broking firm?

Yes

No

If yes,name of the brokerage firm______

11. Are you satisfied with the services provided by Religare?

Yes

No

Since last how many years you are in field of trading?

Less than 1 Year

More Than 1 Year

Year

12.What improvement do you want be done in company‟s services?

13.Which service do you like most in Religare?