Customer Relationship Management in Religare Securities with special reference to equities Summer Training Project Report Submitted in the partial fulfillment of the requirements For the degree of MASTERS OF BUSINESS ADMINISTRATION (2009-10) By JYOTI M. SUVARNA ( Roll No. ) DEPARTMENT OF BUSINESS ADMINISTRATION Sikkim Manipal university (MUMBAI) AFFLIATED TO SIKKIM MANIPAL UNIVERSITY, Manipal 1 CERTIFICATE I This is to certify that the project ³Customer Relationship Management in Religare securities with special reference to equities´ submitted in the partial fulfillment of the requirement for the degree of Master in Business Administration of the Sikkim Manipal university is a bonafide research work carried out by Jyoti M. Suvarna (Roll No. ), under my supervision and that no part of this research project has been submitted for any other degree. The assistance and help received during the course of this investigation has been fully acknowledged. Dated: Ms. Deepika Arora Training Advisor Faculty PCTE, Baddowal, Ludhiana. 2 ACKNOWLEDGEMENT Any person can never do work of this nature alone. This formal piece of acknowledgement may not be sufficient to express the feeling of gratitude and affection for those who were associated with the project and without whose co- operation and guidance this project could not have been conducted properly. It is a matter of great pleasure for me in submitting the project report on ³Customer Relationship Management´ in Religare Securities with Special Reference to Equity´ in the partial fulfillment of the requirement of my course from ³ PUNJAB COLLEGE OF TECHNICAL EDUCATION, BADDOWAL.´ It is my profound privilege to thankfully acknowledge the inspiring co-operation extended to me by all the staff members for the successful completion of my project. My first word of thanks goes to Mr. Vinay Kumar, Branch Manager, Religare Securities, CP New Delhi for giving me an excellent chance to undergo training in a reputed and prestigious brokerage firm of India. I further, am in deep gratitude to Mr. Sunil Shukla , Senior Relationship Manager for His kind support and guidance in marshalling my knowledge to the shaping of and the Becoming of the project & other staff members of Religare for their kindness and Valuable guidance and assistance, which helped me in the completion of my summer Training. 3 ABSTRACT Ever since we have attained independence we have been attaining some sort of nourishment in one field or another. Finance is the backbone of every country and India is no exception. Being the country it is have lot of pressure of population and that burden has to be born by the earning population of the country. Indian financial market has been progressing leaps and bounds in last decade or so World see India as the emerging power of the planet and Indian finance has major role to play in letting the country in this great position. Share market is the breathing zone of Indian financial market. Every Indian company which has some significance with lot of people has been listed in the stock exchange and has been affecting country. Broking firms play a major role in the smooth functioning of the Stock Market because investors trade through these broking firms. So because of lots of opportunity in this sector with that is the increasing competition. More and more companies are entering into this sector, so to maintain and acquire the client base it requires good marketing strategies on the companies part. It must be kept in mind that major share of investors are price sensitive and they decide the investment options and the options to trade trough on the basis of cost effectiveness. (Signature of major advisor) (Signature of student) 4 TABLE OF CONTENTS Sr. No. Contents Page No. Part - A 1. Introduction to Brokerage industry 9 1.1 Primary Market 9 1.2 Secondary Market 10 1.3 Evolution of the Indian Brokerage Market 11 1.4 Development in the Brokerage Industry 1.5 Industry Insight 12 1.6Main players in the brokerage industry are 13 14 2. Introduction to Religare Enterprise Limited 14 2.1Historical Background Of The Group 15 2.2 Vision & Mission 15 2.3Now What Does RELIGARE Mean? 16 2.4 Key Events and Milestones 18 2.5Organization Structure 19 2.6 Central Leadership Team 20 2.7 Board of Directors - Religare Enterprises Limited 21 5 2.8 Addresses 21 2.9 Religare Global Presence 21 2.10 Following are the companies Under Religare 22 Enterprise Limited 3. Religare Securities Limited 23 25 3.1 Products and services 33 3.2 Key Executives 34 3.3 SWOT Analysis Of Religare Securities Ltd 4. FINANCIAL ANALYSIS 39 4.1Profit and Loss Account 39 4.2Balance Sheet 40 4.3 Financial Statement Analysis 42 4.4 Trend Analysis 49 Part ± B 1. Introduction to the project 54 1.1 Customer relationship management 54 1.2 Need of the study 65 2. 2.1 Review of Literature 66 6 2.2 Title 70 2.3 Objectives 71 3. Research Methodology 72 3.1 Scope of the research project 72 3.2 Type of Research 72 3.3 Method of Data collection 72 3.4 Sample Design 73 3.5 Limitations of the Study 4. Data analysis and interpretation Table 4.1 Profession In which respondent is engaged 74 Table 4.2 Time period of investing. 76 Table 4.3 Reasons For Investing 78 Table 4.4 Awareness of Customer relationship marketing policies 80 Table 4.5 Customer Relationship marketing Policies. 81 Table 4.6 Choose any 3 Customer relationship 83 Practices Table 4.7 Reason for Religare to follow these 85 practices 87 7 Table 4.8 (a) Satisfaction Level for Staff Efficiency 88 Table 4.8 (b) Satisfaction Level for Redressing of 89 complaints . 90 Table 4.8 (c) Satisfaction Level for Timely 91 Responses Table 4.8 (d) Satisfaction Level for Updated 92 information 93 Table 4.8 (e) Satisfaction Level for Clarity of concept 94 Table 4.9 Influence of Customer Relationship Practices in further Investing Table 4.10 Recommend to others Table 4.11 Experience in Stock market 5. Results and findings 96 Recommendations 97 Conclusion 98 Bibliography/References 99 Questionnaire 100 8 CHAPTER 1 INTRODUCTION TO BROKERAGE INDUSTRY Globalization has proved to be a boon for the Indian economy. After globalization there has been a tremendous growth in the Indian economy. Every sector of the economy has shown an outstanding performance after globalization. Earlier Trading was confined in limited boundaries but now the scenario has been totally different after the entrance of online trading. There is a cut throat competition between the broking houses. Now the brokers are more concerned about their customers to improve their performance. The sector is undergoing fundamental changes that have diluted its traditional role of protecting small deposits against capital and income risk and facilitating the conversion of Savings into investment. Also there have been a drastic increase in the volume of share traded on stock exchange and with that the online trading has shown Bull Run. The Indian 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. Hence, to understand this industry we have to study Security Market: Security market has two main interdependent segments: Primary market and the Secondary market. 9 1.1 Primary Market The primary is that part of the capital markets that deals with the issuance of new securities. Companies, governments or public sector institutions can obtain funding through the sale of a new stock or bond issue. This is typically done through a syndicate of securities dealers. The process of selling new issues to investors is called underwriting. In the case of a new stock issue, this sale is an initial public offering (IPO). Dealers earn a commission that is built into the price of the security offering, though it can be found in the prospectus. In primary market certain companies issue their shares directly to the public, collect applications and after sorting out the good issues, they put in their applications. The share brokers get their brokerage on the transactions made. 1.2 Secondary Market The secondary market is that market in which trading is done of securities that have already been issued in an initial private or public offering. The secondary market comprises of brokerage that a broker earns in the buying and selling of companies that are listed in the stock exchange. These stock brokers are in charge of the conformation and carrying out of transactions. Orders are taken and executed on behalf of the clients. The fluctuation of rates in the share market makes the activity in a trade market a dynamic process. It is necessary for a broker to have adequate knowledge about the economic and political factors as they affect the share market. 1.3Evolution 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 10 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. 1.3.1Early 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. The roots of a stock market in India began in the 1860s during the American Civil War that led to a sudden surge in the demand for cotton from India resulting in setting up of a number of joint stock companies that issued securities to raise finance.