Professional Documents
Culture Documents
ON
Of
This is to certify that report entitled “Trading On Equity in Religare Securities Limited”
which is submitted by me in partial fulfillment of the requirement for the award of degree of
Bachelor of Business Administration (Computer Aided Management) to G.G.S.I.P university,
Kashmere Gate, Delhi, comprises only my original work and due acknowledgement has been
made in the text to all other material used.
Name-:
Enrolment no.-:
Name of the guide-:
Date:
CERTIFICATE
This is to certify that report entitled “Trading On Equity in Religare Securities Limited”
which is submitted by Aditya Srivastava in partial fulfillment of the requirement for the
award of degree of Bachelor of Business Administration (Computer Aided Management) to
G.G.S.I.P university, Kashmere Gate, Delhi , is a record of the candidate own work carried out
by him under my super vision. The matter embodied in this thesis is original and has not been
submitted for the award of any other degree.
Date:
(Supervisor)
ACKNOWLEDGEMENT
Sometimes words fall short to show gratitude, the same happened with me during this
project. The immense help and support received from Religare Securities Limited
overwhelmed me during the project.
I am also thankful to the other staff members of Religare securities for their continuous
motivation throughout this program, which really helped me in completing this project.
Finally I want to thank all the friends, colleagues for their constant cooperation,
encouragement, help and support throughout the study without which this work would not
have been possible.
Aditya Srivastava
CONTENTS
Serial no. Topics
1. COMPANY PROFILE
1.1) About Religare
1.2) Management team & Board of Directors
1.3) Retail Spectrum
1.4) Wealth Spectrum
1.5) Religare Arts Initiative
1.6) Film Fund
1.7) Institutional Spectrum
1.7.1) Institutional Broking Services
1.7.2) Investment Banking
1.7.3) Insurance Advisory
1.8) Life Insurance
1.9) Private Equity Fund & Other Initiative
5. CONCLUSION
7. QUESTIONNAIRE
7.1) Questionnaire-I
7.2) Questionnaire-II
7.3) Analysis
8. BIBLOGRAPHY
Religare is a diversified financial services group of India offering a multitude of investment
options. The diverse bouquet of financial services, which Religare offers, can be broadly
clubbed across three key verticals - Retail, Institutional and Wealth spectrums. The services
extend from asset management, Life Insurance, wealth management to equity broking,
commodity broking, investment banking, lending services, private equity and venture capital.
Religare has also ventured into the alternative investments sphere through its holistic arts
initiative and Film fund. With a view to expand, diversify and introduce offerings
benchmarked against global best practices, Religare operates in the life insurance space under
'Aegon Religare Life Insurance Company Limited’ and wealth management under the brand
name 'Religare Macquarie Private Wealth'.
Religare has a pan India presence, 1837 locations across 498 cities and towns. It also currently
operates from nine international locations following its acquisition of London's brokerage &
investment firm, Hichens, Harrison & Co. plc. (Now Religare Hichens, Harrison Plc).
The vision is to build Religare as a globally trusted brand in the financial services domain and
present it as the 'Investment Gateway of India'. All employees of the group guided by an
experienced and professional management team are committed to providing financial care,
backed by the core values of diligence, innovation, ambition and passion.
Equity Trading
Trading in Equities with Religare truly empowers you for your investment needs. We
ensure you have a superlative trading experience through -:
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.
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.
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.
Wealth Management
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".
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
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.
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.
Investment Banking
Insurance Advisory
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.
In-depth, detailed and insightful coverage across 16 diverse sectors and 153
companies that extends to -:
o Economic Research
o Result Expectations
o Derivative Strategies
o IPO Research
o Mutual Fund Research
o 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.
Value Proposition
Presence Pan India foot print
Strong Domain Expertise Rich domain knowledge and Industry experts
Comprehensive Risk Portfolio Expertise to meet all your Insurance needs
Management.
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-:
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.
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.
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
Trading in Equities with Religare truly empowers you for your investment needs. We ensure
you have a superlative trading experience through -
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.
Origins
The National Stock Exchange of India was promoted by leading Financial
institutions at the behest of the Government of India, and was incorporated in
November 1992 as a tax-paying company. In April 1993, it was recognized as a stock
exchange under the Securities Contracts (Regulation) Act, 1956. NSE commenced
operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market
(Equities) segment of the NSE commenced operations in November 1994, while operations
in the Derivatives segment commenced in June 2000.
Within a very short span of time, NSE has been able to achieve its objectives for which it
was set up. Indian Capital Markets are a far cry from what they were 12 years back in terms
of market practices, infrastructure, technology, risk management, clearing and settlement
and investor service. To ensure continuity of business, NSE has built a full-fledged BCP site
operational for last 7 years.
NSE'S MARKETS
NSE provides a fully automated screen-based trading system with national reach in
the following major market segments: -
S&P CNX Nifty is a well-diversified 50 stock index accounting for 21 sectors of the
economy. It is used for a variety of purposes such as benchmarking fund portfolios, index
based derivatives and index funds.
S&P CNX Nifty is owned and managed by India Index Services and Products Ltd. (IISL),
which is a joint venture between NSE and CRISIL. IISL is India's first specialized company
focused upon the index as a core product. IISL has Marketing and licensing agreement with
Standard & Poor's (S&P), who are world leaders in index services.
• The total traded value for the last six months of all Nifty stocks is
approximately 65.68% of the traded value of all stocks on the NSE
• Nifty stocks represent about 65.34% of the total market capitalization as on
Mar 31, 2009.
• Impact cost of the S&P CNX Nifty for a portfolio size of Rs.2 crore is 0.16%
• S&P CNX Nifty is professionally maintained and is ideal for derivatives
trading.
NIFTY 50
Constituents list of S&P CNX Nifty
BSE is the first stock exchange in the country, which obtained permanent recognition (in
1956) from the Government of India under the Securities Contracts (Regulation) Act 1956.
BSE's pivotal and pre-eminent role in the development of the Indian capital market is widely
recognized. It migrated from the open outcry system to an online screen-based order driven
trading system in 1995. Earlier an Association Of Persons (AOP), BSE is now a corporatised
and demutualised entity incorporated under the provisions of the Companies Act, 1956,
pursuant to the BSE (Corporatisation and Demutualization) Scheme, 2005 notified by the
Securities and Exchange Board of India (SEBI). With demutualization, BSE has two of
world's best exchanges, Deutsche Börse and Singapore Exchange, as its strategic partners.
Over the past 133 years, BSE has facilitated the growth of the Indian corporate sector by
providing it with an efficient access to resources. There is perhaps no major corporate in India,
which has not sourced BSE's services in raising resources from the capital market.
Today, BSE is the world's number 1 exchange in terms of the number of listed companies and
the world's 5th in transaction numbers. The market capitalization as on December 31, 2007
stood at USD 1.79 trillion. An investor can choose from more than 4,700 listed companies,
which for easy reference, are classified into A, B, S, T and Z groups.
The BSE Index, SENSEX, is India's first stock market index that enjoys an iconic stature, and
is tracked worldwide. It is an index of 30 stocks representing 12 major sectors. The SENSEX
is constructed on a 'free-float' methodology, and is sensitive to market sentiments and market
realities. Apart from the SENSEX, BSE offers 21 indices, including 12 sectoral
indices. BSE has entered into an index cooperation agreement with Deutsche
Börse. This agreement has made SENSEX and other BSE indices available to investors in
Europe and America. Moreover, Barclays Global Investors (BGI), the global leader in ETFs
through its brand, has created the BSE SENSEX India Tracker' which tracks the SENSEX.
The ETF enables investors in Hong Kong to take an exposure to the Indian equity market.
The first Exchange Traded Fund (ETF) on SENSEX, called "Spice" is listed on BSE. It brings
to the investors a trading tool that can be easily used for the purposes of investment, trading,
hedging and arbitrage. Spice allows small investors to take a long-term view of the market.
BSE provides an efficient and transparent market for trading in equity, debt instruments and
derivatives. It has a nation-wide reach with a presence in more than 359 cities and towns of
India. BSE has always been at par with the international standards. The systems and processes
are designed to safeguard market integrity and enhance transparency in operations. BSE is the
first exchange in India and the second in the world to obtain an ISO 9001:2000 certifications.
It is also the first exchange in the country and second in the world to receive Information
Security Management System Standard BS 7799-2-2002 certification for its BSE On-line
Trading System (BOLT).
BSE continues to innovate. In recent times, it has become the first national level stock
exchange to launch its website in Gujarati and Hindi to reach out to a larger number of
investors. It has successfully launched a reporting platform for corporate bonds in India
christened the ICDM or Indian Corporate Debt Market and a unique ticker-cum-screen aptly
named 'BSE Broadcast’, which enables information dissemination to the common man on the
street.
In 2006, BSE launched the Directors Database and ICERS (Indian Corporate Electronic
Reporting System) to facilitate information flow and increase transparency in the Indian
capital market. While the Directors Database provides a single-point access to information on
the boards of directors of listed companies, the ICERS facilitates the corporate in sharing with
BSE their corporate announcements.
BSE also has a wide range of services to empower investors and facilitate smooth
transactions:
Investor Services: The Department of Investor Services redresses grievances of
investors. BSE was the first exchange in the country to provide an amount of Rs.1
million towards the investor protection fund; it is an amount higher than that of any exchange in the
country. BSE launched a nationwide investor awareness programme- 'Safe Investing in the Stock Market'
under which 264 programmes were held in more than 200 cities.
The BSE On-line Trading (BOLT): BSE On-line Trading (BOLT) facilitates on-line screen based
trading in securities. BOLT is currently operating in 25,000 Trader Workstations located across over 359
cities in India.
BSEWEBX.com: In February 2001, BSE introduced the world's first centralized exchange-based Internet
trading system, BSEWEBX.com. This initiative enables investors anywhere in the world to trade on the
BSE platform.
Surveillance: BSE's On-Line Surveillance System (BOSS) monitors on a real-time basis the price
movements, volume positions and members' positions and real-time measurement of default risk, market
reconstruction and generation of cross market alerts.
BSE Training Institute: BTI imparts capital market training and certification, in collaboration with
reputed management institutes and universities. It offers over 40 courses on various aspects of the capital
market and financial sector. More than 20,000 people have attended the BTI programmes
Awards
PRODUCTS OF RELIGARE
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.
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.
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 Delivery Branches Demat Margin
(in (In (delhi) In Rs. money
paisa) paisa)
5 20 80 500 5000
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
Charges of opening demat account product Rally-pro is same as product Rally but the only
difference is of the charges of the software which are given below-:
Brokerage equity
For activating Odin diet an activation key is required which can be obtained by opening the
below mention site-:
http://www.religaresecurities.com /ActivationKey.asp
Fast trade is a client-server application with a user friendly and flexible interface for trading.
It is packaged with optimum performance, robust architecture, computer-to-computer link
(CTCL) technology adaptability, critical data handling ability, transaction management, and
many such features.
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.
Brokerage equity
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.
Rally-lite also allows easy access to the margin reports etc.
http://www.religaresecurities.com/ LoginNetNetLite.asp
Screen shot of Rally-lite web browser-:
DEPOSITORY
Religare Securities Limited (RSL) provides depository services to investors as a Depository
Participant with the following-:
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.
Categories of mutual funds:
HISTORY
The stock market crash of 1929 hindered the growth of mutual funds. In response to the stock
market crash, Congress passed the Securities Act of 1933 and the Securities Exchange Act of
1934. These laws require that a fund be registered with the Securities and Exchange
Commission (SEC) and provide prospective investors with a prospectus that contains required
disclosures about the fund, the securities themselves, and fund manager. The SEC helped draft
the Investment Company Act of 1940, which sets forth the guidelines with which all SEC-
registered funds today must comply.
With renewed confidence in the stock market, mutual funds began to blossom.
By the end of the 1960s, there were approximately 270 funds with $48 billion in
assets. The first retail index fund, First Index Investment Trust, was formed in 1976 and
headed by John Bogle, who conceptualized many of the key tenets of the industry in his 1951
senior thesis at Princeton University. It is now called the Vanguard 500 Index Fund and is one
of the world's largest mutual funds, with more than $100 billion in assets.
A key factor in mutual-fund growth was the 1975 change in the Internal Revenue Code
allowing individuals to open individual retirement accounts (IRAs). Even people already
enrolled in corporate pension plans could contribute a limited amount (at the time, up to
$2,000 a year). Mutual funds are now popular in employer-sponsored "defined-contribution"
retirement plans such as (401(k) s) and (403(b) s) as well as IRAs including Roth IRAs.
As of October 2007, there are 8,015 mutual funds that belong to the Investment Company
Institute (ICI), a national trade association of investment companies in the United States, with
combined assets of $12.356 trillion. In early 2008, the worldwide value of all mutual funds
totaled more than $26 trillion.
USAGE
Mutual funds can invest in many kinds of securities. The most common are cash
instruments, stock, and bonds, but there are hundreds of sub-categories. Stock funds, for
instance, can invest primarily in the shares of a particular industry, such as technology or
utilities. These are known as sector funds. Bond funds can vary according to risk
(e.g., high-yield junk bonds or investment-grade corporate bonds), type of issuers
(e.g., government agencies, corporations, or municipalities), or maturity of the bonds
(short- or long-term). Both stock and bond funds can invest in primarily U.S. securities
(domestic funds), both U.S. and foreign securities (global funds), or primarily foreign
securities (international funds).
Most mutual funds' investment portfolios are continually adjusted under the supervision of a
professional manager, who forecasts cash flows into and out of the fund by investors, as well
as the future performance of investments appropriate for the fund and chooses
those which he or she believes will most closely match the fund's stated
investment objective. A mutual fund is administered under an advisory contract with a
management company, which may hire or fire fund managers.
Mutual funds are subject to a special set of regulatory, accounting, and tax rules. In the U.S.,
unlike most other types of business entities, they are not taxed on their income as long as
they distribute 90% of it to their shareholders and the funds meet certain diversification
requirements in the Internal Revenue Code. Also, the type of income they earn is often
unchanged as it passes through to the shareholders. Mutual fund distributions of tax-free
municipal bond income are tax-free to the shareholder. Taxable distributions can be either
ordinary income or capital gains, depending on how the fund earned those distributions. Net
losses are not distributed or passed through to fund investors.
Advantages of a MF-:
The net asset value, or NAV, is the current market value of a fund's holdings, less the fund's
liabilities, usually expressed as a per-share amount. For most funds, the NAV is determined
daily, after the close of trading on some specified financial exchange, but some funds update
their NAV multiple times during the trading day. The public offering price, or POP, is the
NAV plus a sales charge. Open-end funds sell shares at the POP and redeem shares at the
NAV, and so process orders only after the NAV are determined. Closed-end funds
(the shares of which are traded by investors) may trade at a higher or lower price than their
NAV; this is known as a premium or discount, respectively. If a fund is divided into multiple
classes of shares, each class will typically have its own NAV, reflecting differences in fees
and expenses paid by the different classes.
Some mutual funds own securities which are not regularly traded on any formal exchange.
These may be shares in very small or bankrupt companies; they may be derivatives; or they
may be private investments in unregistered financial instruments (such as stock in a non-
public company). In the absence of a public market for these securities, it is the responsibility
of the fund manager to form an estimate of their value when computing the NAV. How much
of a fund's assets may be invested in such securities is stated in the fund's prospectus.
The performance of equity funds can be measured on the basis of: NAV Growth,
Total Return; Total Return with Reinvestment at NAV, Annualized Returns and
Distributions, Computing Total Return (Per Share Income and Expenses, Per Share Capital
Changes, Ratios, Shares Outstanding), the Expense Ratio, Portfolio Turnover Rate, Fund Size,
Transaction Costs, Cash Flow, Leverage.
Every fund sets its benchmark according to its investment objective. The funds performance is
measured in comparison with the benchmark. If the fund generates a greater return than the
benchmark then it is said that the fund has outperformed benchmark, if it is equal to
benchmark then the correlation between them is exactly 1. And if in case the return is lower
than the benchmark then the fund is said to be underperformed.
EXPENSES
Mutual funds bear expenses similar to other companies. The fee structure of a mutual fund
can be divided into two or three main components: management fee and non-management
expense fees. All expenses are expressed as a percentage of the average daily
net assets of the fund.
1) MANAGEMENT FEES-:
The management fee for the fund is usually synonymous with the contractual investment
advisory fee charged for the management of a fund's investments. However, as many fund
companies include administrative fees in the advisory fee component, when attempting to
compare the total management expenses of different funds, it is helpful to define
management fee as equal to the contractual advisory fee + the contractual administrator fee.
This "levels the playing field" when comparing management fee components across multiple
funds.
Contractual advisory fees may be structured as "flat-rate" fees, i.e., a single fee charged to
the fund, regardless of the asset size of the fund. However, many funds have contractual fees
which include breakpoints so that as the value of a fund's assets increases, the advisory fee
paid decreases. Another way in which the advisory fees remain competitive is by structuring
the fee so that it is based on the value of all of the assets of a group or a complex of funds
rather than those of a single fund.
2) NON-MANAGEMENT EXPENSES-:
Apart from the management fee, there are certain non-management expenses which most
funds must pay. Some of the more significant (in terms of amount) non-management
expenses are: transfer agent expenses (this is usually the person you get on the other end of
the phone line when you want to purchase/sell shares of a fund), custodian expense (the
fund's assets are kept in custody by a bank which charges a custody fee), legal/audit expense,
fund accounting expense, registration expense (the SEC charges a registration fee when
funds file registration statements with it), board of directors/trustees expense (the members
of the board who oversee the fund are usually paid a fee for their time spent at meetings),
and printing and postage expense (incurred when printing and delivering shareholder
reports).
Fees and expenses borne by the investor vary based on the arrangement made with the
investor's broker. Sales loads (or contingent deferred sales loads (CDSL)) are not included in
the fund's total expense ratio (TER) because they do not pass through the statement of
operations for the fund. Additionally, funds may charge early redemption fees to discourage
investors from swapping money into and out of the fund quickly, which may force the fund
to make bad trades to obtain the necessary liquidity. For example, Fidelity
Diversified International Fund (FDIVX) charges a 1 percent fee on money
removed from the fund in less than 30 days.
4) BROKERAGE COMMISSIONS-:
An additional expense which does not pass through the statement of operations and cannot
be controlled by the investor is brokerage commissions. Brokerage commissions are
incorporated into the price of the fund and are reported usually 3 months after the fund's
annual report in the statement of additional information. Brokerage commissions are directly
related to portfolio turnover (portfolio turnover refers to the number of times the fund's
assets are bought and sold over the course of a year). Usually, higher rate of portfolio
turnover returns in higher brokerage commissions. The advisors of mutual fund companies
are required to achieve "best execution" through brokerage arrangements so that the
commissions charged to the fund will not be excessive.
5) Loads-:
Entry Load/Front-End Load (0-2.25%) - it’s the commission charged at the time of buying
the fund to cover the cost of selling, processing etc.
Exit Load/Back- End Load (0.25-2.25%) - it is the commission or charged paid when an
investor exits from a mutual fund, it is imposed to discourage withdrawals. It may reduce to
zero with increase in holding period.
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.
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.
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.
During the period 1950-1951 until mid-December 1973, India followed an exchange rate
regime with the Rupee linked to the Pound Sterling, except for the devaluations in 1966 and
1971. When the Pound Sterling floated on June 23, 1972, the Rupee's link to the British unit
was maintained-thus, paralleling the Pound's depreciation and de facto devaluation.
In 1975, the Rupee's ties to the Pound Sterling were disengaged. India established a float
exchange regime, with the Rupee's effective rate placed on a controlled, floating basis and
linked to a "basket of currencies" of India's major trading partners. More recently, the Indian
Rupee has been depreciating in step formation, but roughly in line with the fall in its
Purchasing Power Parity since the early 1980s. While the PPP was 15 around 1982, the
actual exchange rate was 9.30 per US dollar. After the devaluation, the Rupee underwent the
change from a controlled regime to a "Managed" or "Dirty" float regime, where the market
supposedly determines the exchange rate. In mid 2005, the actual rate was near 43.60. The
Reserve Bank of India is the central bank of India, and it controls the issuance of currency
throughout the nation.
RELIGARE SECURITIES
ICICI DIRECT
INDIA INFOLOINE SECURITY PVT. LTD.
HDFC SECURITIES
INDIA BULLS
KOTAK SECURITIES
RELIANCE MONEY
MOTILAL OSWAL
HEM SECURITIES
ICICI DIRECT
ICICI Web Trade Limited (IWTL) maintains www.icicidirect.com (herein
after referred to as website) where as 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.
Stock market- IISPL deals in stock market by trading in equity and derivatives.
Personal finance- it deals in mutual funds and insurance.
Other trading- it provides services in stock and commodity trading (through internet).
HDFC
HDFC securities are the subsidiary of (housing development financial
corporation). www.hdfcsec.com would have an exclusive discretion to decide
the customers who would be entitled to it’s online investing services www.hdfcsec.com also
serves the right to decide on the criteria based on which customers would be chosen to
participate in these services. The present website (www.hdfcsec.com) contains features of
services that they offer/propose to offer in due course. The launch of new services in
subjected to the clearance of the regulators i.e., SEBI, NSE, BSE.
INDIABULLS
Indiabulls was incorporated as GPF securities Pvt Ltd on June 9, 1995. The name of
company was changed to ORBIS securities Pvt Ltd on Dec 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 Jan 5, 2004. The
name of the company was again changed to INDIABULLS Securities Ltd on Feb 16, 2004
so as to capitalize the brand image of the term ‘INDIABULLS’.
Products offered
Equity and debt stock broking, Insurance Commodity trading, Depository service,
Derivative broking services, Equity research service, Mutual fund distribution & IPO
distribution
SHAREKHAN SECURITIES
Sharekhan securities is one of the leading retail of citi venture which is
running successfully since 1922 in the country. Earlier it was the retail
broking arm of the Mumbai based SSKI Group which is eight decades of experience in the
stock broking business. Sharekhan offers the customers a wide range of equity related
services including trade execution on BSE, NSE, derivatives, depository services, Online
trading, investment advice etc.
Products offered
KOTAK SECURITIES
Kotak Securities Limited, a subsidiary of Kotak Mahindra Bank, is the stock broking and
distribution arm of the Kotak Mahindra Group. The company was set up in 1994. Kotak
Securities is a corporate member of both The Bombay Stock Exchange and The National
Stock Exchange of India Limited. Its operations include stock broking and distribution of
various financial products - including private and secondary placement of debt and equity
and mutual funds. Currently, Kotak Securities is one of the largest broking houses in India
with wide geographical reach. The company has four main areas of business: (1)
Institutional Equities, (2) Retail (equities and other financial products), (3) Portfolio
Management and (4) Depository Services.
RELIANCE MONEY
Reliance Money, a Reliance Capital company and part of the Reliance Anil Dhirubhai
Ambani Group is a comprehensive financial services and solution provider. It is a one-stop-
shop, providing end-to-end financial solutions (including mobile and web-based services). It
has the largest non-banking distribution channel with over 10,000 outlets and 20,000 touch
points spread across 5,165 cities/ towns; catering to the diverse needs of over 3 million
existing customers.
Reliance Money endeavors to change the way investors transact in financial markets and
avails financial services. It provides customers with access to Equity, Equity and
Commodity Derivatives, Offshore Investments, Portfolio Management Services,
Wealth Management Services, Investment Banking, Mutual Funds, IPO’s, Life and
General Insurance products and Gold Coins. Customers can also avail Loans, Credit
Card, Money Transfer and Money Changing services.
Reliance Capital is one of India's leading and fastest growing private sector financial
services companies, and ranks among the top 3 private sector financial services and banking
groups, in terms of net worth.
Comparative study
Between Religare & Others Firm
Table showing charges for Demat a/c-:
Brokerage equity
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 Securities provides the facilities
of relationship manager for encouragement and protects the interest of the investors. 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.
QUESTIONNAIRE-I
Address: ______________________________________________
5) Are you organizing any events or survey for customer’s awareness? (if yes then specify)
________________________________________________________________________
6) Any special services which makes you different in market or any USP of your company?
QUESTIONNAIRE-II
(Questions that we asked to people)
Please list the value of the assets in your total investments portfolio :( in Rs.)
(1) Over the next 3-5 years, do you expect your annual income to
change?
Almondz others
Interpretation:- The major part of the sample taken has not invested in the Shares. The
demand for the investment in Shares has increased in the past few years with many players
entering in the Indian market.
Experience to Market
Interpretation:- The experience in the market was the factor which influenced the
investments. There are not many people who are new or have experience of less than a
year. Major part was having vast experience that is of more than 4 years. These are the
ones who have been in the market and saw it rising to conquer the 10.000 peak
40%
32% 30%
30%
20% 20%
10% 10%
6%
2%
0%
Broke News Magzi Frien Self Other
Series1 32% 10% 6% 20% 30% 2%
Interpretation:- There are many factors which influence the investment decision of the
investors. It may be the current news (political, technological, financial, etc.), Magazines,
friends, etc. in the study it proved that many people trust the brokers most for the
investment decisions. These are the ones who have less experience. The “Self-Evaluation”
is the next major factor. The experienced person trust himself thereafter he/she invests.
Magazines and current News also matters. Any bad news can make a person change his/her
decision.
Objectives
Strategies Applied
Achievements
Limitations
Conclusion
Corporate learning
Recommendations
ON THE JOB TRAINING
Title
To generate leads by telecalling, presentations and to close the deal along with the
handling of the customer’s queries regarding share trading, account opening and
maintenance, software installation and demonstration .
Objectives
• To create awareness among the people about the different products offered by
the company in the market through telecalling, canopies, presentations etc.
Target/Task
Telecalling
Cold calling
Clients References
Database available on the internet
Database provided by the co. or yellow pages.
LIMITATION
CONCLUSIONS
• I have made about 40-50 calls per day in the initial days of training so as to
generate maximum leads.
• I handled the queries of both the new clients of the company pertaining to
different issues like opening of accounts, trading procedures etc.
CORPORATE LEARNINGS
Learnt the technical procedures and analysis of various research systems, such as
marketing research and equity research.
Recommendations
What I recommend firstly there should be
[1] First Aid Kit for New Entrant into Securities Market this will be a new step towards a
good service provider in this field. After all, this market depends on the after sales service.
After seeing such a boost in the share market, not only our Adult generation but also the
young generation is also so much excited to enter the share market. Now the actual problem
starts specially with the young ones in excitement initially they invests the money & due to
lack of experience they loose big block of money in one go & later they blames the company
about the loss. So, to make them train in the field we should provide them the initial
precautions that they should take while enter into the market.
“The More You Care For Your Customer More The Faith Will Get Develop From
Customer Side”
[2] Provision for training for the new investors for the above reason same thing to boost
there moral and to give them some thing related to the market will help them. Also some tips
can also be given to these investor during the session as a precautions.
[3] Customer Care for general query handle initially customer want to solve his or her
problem at the moment as it arises. Our relationship manager many times don’t have that
much time to discuss all that details on phone, they may sometime get busy with the meeting
with client. So for general query handle we can have a separate section.
BIBLOGRAPHY
WEBSITES:
www.religare.in
www.google.com
www.nseindia.com
www.bseindia.com
www.moneycontrol.com
NEWSPAPERS:
HINDUSTAN TIMES
ECONOMIC TIMES
MARKET EXPRESS
BOOKS:
JOURNALS OF RELIGARE