Professional Documents
Culture Documents
PROJECT FILE
ON
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PROJECT FILE
ON
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B.M.A.S
DECLARATION
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ACKNOWLEGDEMENT
It gives me pleasure to present this project report, which is an outcome of the study
“Comparative research analysis of the services provided by Religare securities Ltd. with
other broking houses”.
Completing a task is a never a one-man effort. It is often the result of valuable contribution of
a number of individuals in a direct or indirect manner that helps on shaping and achieving an
objective.
I wish to express my sincere gratitude to innumerable number of people who have been
associated with me throughout this project. I feel blessed to have the opportunity of
expressing my hearty gratitude to the following personalities, without the help of whom my
project could not have been hatched.
I am grateful to my faculty guide MR. AMIT JAISWAL for the Summer Internship Project,
for
their regular guidance without which my project report would not have been completed.
I am also thankful to the other staff member of Religare securities ltd. for their continuous
motivation throughout this program, which really helped me in completing this project.
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CONTENT
ABSTRACT
OBJECTIVE
EXECUTIVE SUMMARY
INTRODUCTION :
BSE Group
CHAPTER -1
INTRODUCTION OF RELIGARE:
Symbol
Profile
Board of directors
Key officials
o Structure
o Services
o Organization structure
o Products
o D mat account
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o Similarity
o Benefits
o Ways of trading
o Mutual funds
CHAPTER – 2
o Major competitors
o Briefly description
o Comparison of brokerage
o Comparison of services
CHAPTER - 3
Analysis and interpretation
o Religare as a brand
o Religare facilities
o Satisfaction level
o Frequency of trading
o Percentage
o Ratio analysis
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CHAPTER – 4
Research and methodology
CHAPTER – 5
Conclusion and Bibliography
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ABSTRACT
Religare Securities Limited (REL) is a global financial services group with a presence across
Asia, Africa, Middle East, Europe and the Americas. In India, REL’s largest market, the
group offers a wide array of products and services ranging from insurance, asset
management, broking and lending solutions to investment banking and wealth management.
The group has also pioneered the concept of investments in alternative asset classes such as
arts and films .With 10,000 plus employees across multiple geographies, REL serves over a
million clients, including corporate and institutions, high net worth families and individuals,
and retail investors. Nowadays, it is said to be the number one company in the comparison of
the other broking houses.
In this project we are going to present a vivid description over RELIGARE SECURITIES
which is a Broking House, about all services functions and facilities and also the comparison
with other broking houses.
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OBJECTIVE
2. To analyze the working procedure of the company differ from the other broking
companies in providing services and strong client maintenance.
3. To analyze the career in security market and identifying the key factors for enhancing
effectiveness of the company.
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EXECUTIVE SUMMARY
The project titled “RELIGARE and comparative study of services provided by Religare
securities ltd and
other broking houses”has been carried out for “Religare securities limited.”
There is growing competition between brokerage firms in post reform India. For investor it is
always difficult to decide which brokerage firm to choose.
Research was carried out to find which brokerage house people prefer and to figure out what
people prefer while investing in stock market.
This study suggest that people are reluctant while investing in stock and commodity market
due to lack of knowledge Main purpose of investment is returns and liquidity, commodity
market is less preferred by investors due to lack of awareness. The major findings of this
study are that people are interested to invest in stock market but they lack knowledge.
Through this report we were also able to understand, what are our Company’s (Religare
securities Ltd.) positive and strong points, on the basis of which we come to know what can
be the basis of pitching to a potential client. We also gave suggestions to the company, what
improvement can be done to our product.
I hope Religare securities Ltd. will recognize this as well as take more references from this
project report.
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INTRODUCTION
Before proceeding forward we need to understand briefly about “market”, what market is?
Basically market consist exchanges through which customer trades. There are different
exchanges as National Stock Exchange, Bombay Stock Exchange and Chennai Stock
Exchange in the market. Market is further divided into primary and secondary which takes
the market into different stages.
The primary market provides the channel for sale of new securities. Primary
market provides opportunity to issuers of securities; Government as well as
corporate, to raise resources to meet their requirements of investment
and/or discharge some obligation.
They may issue the securities at face value, or at a discount/premium and
these securities may take a variety of forms such as equity, debt etc. They
may issue the securities in domestic market and/or international market. Its also named as
initial public offer (IPO). An Initial Public Offer (IPO) is the selling of securities to the public
in the primary market. It is when an unlisted company makes either a fresh issue
of securities or an offer for sale of its existing securities or both for the first
time to the public. This paves way for listing and trading of the issuer’s
securities. The sale of securities can be either through book building or
through normal public issue. Is when an unlisted company makes either a
fresh issue of securities or an offer for sale of its existing securities or both
for the first time to the public. This paves way for listing and trading of the
issuer’s securities. The price at which a company's shares are offered initially in the primary
market is called as the Issue price. When they begin to be traded, the
market price may be above or below the issue price.
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Secondary market refers to a market where securities are traded after being
initially offered to the public in the primary market and/or listed on the
Stock Exchange. Majority of the trading is done in the secondary market.
Secondary market comprises of equity markets and the debt markets. For the general
investor, the secondary market provides an efficient
platform for trading of his securities. For the management of the company,
Secondary equity markets serve as a monitoring and control conduit—by
facilitating value-enhancing control activities, enabling implementation of
incentive-based management contracts, and aggregating information (via
price discovery) that guides management decisions.
The stock exchanges in India, under the overall supervision of the regulatory
authority, the Securities and Exchange Board of India (SEBI), provide a
trading platform, where buyers and sellers can meet to transact in
securities. The trading platform provided by NSE is an electronic one and
there is no need for buyers and sellers to meet at a physical location to
trade. They can trade through the computerized trading screens available
with the NSE trading members or the internet based trading facility provided
by the trading members of NSE.
The trading on stock exchanges in India used to take place through open
outcry without use of information technology for immediate matching or
recording of trades. This was time consuming and inefficient. This imposed
limits on trading volumes and efficiency. In order to provide efficiency,
liquidity and transparency, NSE introduced a nationwide, on-line, fully automated
screen based trading system (SBTS) where a member can punch
into the computer the quantities of a security and the price at which he
would like to transact, and the transaction is executed as soon as a
matching sale or buy order from a counter party is found.
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The National Stock Exchange of India Limited is a Mumbai-based stock exchange. It is the
largest stock exchange in India in terms of daily turnover and number of trades, for both
equities and derivative trading. NSE has a market capitalization of around Rs 47,01,923 crore
(7 August 2009) and is expected to become the biggest stock exchange in India in terms of
market capitalization by 2009 end. Through 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 Group:
1. India Index Services & Products Ltd. (IISL)
2. National Securities Clearing Corporation Ltd. (NSCCL)
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3. NSE.IT Ltd.
4. National Securities Depository Ltd. (NSDL)
5. DotEx International Limited
NSE consist 50 companies and it has a index named “NIFTY” which is a weighted average
of 50 companies. These 50 companies namely
Currently, NSE has the following major segments of the capital market:
Equity
Futures and Options
Retail Debt Market
Wholesale Debt Market
Currency futures
MUTUAL FUND
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August 2008 Currency derivatives were introduced in India with the launch of Currency
Futures in USD INR by NSE. Currently it has also launched currency futures in EURO,
POUND & YEN. Interest Rate Futures was introduced for the first time in India by NSE on
31st August 2009, exactly after one year of the launch of Currency Futures.
NSE became the first stock exchange to get approval for Interest rate futures as recommended
by SEBI-RBI committee, on 31 August,2009, a futures contract based on 7% 10 Year GOI
bond (NOTIONAL) was launched with quarterly maturities.
• NSE brings an integrated share market trading network across the nation
• Investors can trade at the same price from anywhere in the country since inter-market
operations are streamlined coupled with the
countrywide access to the NSE share market
• Delays in communication, late payments and the malpractice’s prevailing in the traditional
trading mechanism can be done away with
greater operational efficiency and informational transparency in the share market operations,
with the support of total computerized
network
The Bombay Stock Exchange (BSE) was established in 1875.The BSE India Stock
Exchange serves as the most important for companies to raise money. The chief function of
the Stock Market of India is to help raise money as capital for the growth and expansion of
various private and public sector enterprises. Besides, the Stock Market of India provides
able assistance to the individual investors through daily updates on current position of the
stocks of the respective companies that are enlisted in the Stock Index in which the
movement of prices in a section of the market are captured in price indices. The popular
acronym for Stock Index is Sensitive index or sensex. Moreover, the liquidity provided by the
exchange enables the investors to sell securities owned by them easily and quickly. Hence a
person, who is subjected to sudden dearth of funds, can immediately sell his shares for cash
in India Stock Market.
The BSE Sensex, also known as “BSE 30” is a widely used market index not only in India
but across Asia. In terms of volume of transactions, it is ranked among the top five stock
exchanges in the world.
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CHAPTER
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INTRODUCTION OF RELIGARE
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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. Religare provide its
service in three different segments including Retail, Wealth management and the Institutional
spectrum. Religare retail network has more than 900 locations in 300 cities and towns in
India. Religare Securities Limited (RSL) is a subsidiary company of Religare Enterprises
Ltd and involve in equity related services include online trading at BSE and NSE,
Derivatives, commodities, IPO, Mutual fund, Investment banking and institutional broking
services.
Religare Enterprises Limited (REL) is a global financial services group with a presence
across Asia, Africa, Middle East, Europe and the Americas. In India, REL’s largest market,
the group offers a wide array of products and services ranging from insurance, asset
management, broking and lending solutions to investment banking and wealth management.
The group has also pioneered the concept of investments in alternative asset classes such as
arts and films .With 10,000 plus employees across multiple geographies, REL serves over a
million clients, including corporate and institutions, high net worth families and individuals,
and retail investors.
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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.
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.
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Hope. Trust. Care. Good Fortune. All elements perfectly combine in the
emblematic and rare, four-leaf clover to visually symbolize the values that bind.
Profile
Board of directors
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KEY OFFICIALS
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MISSION
Structure
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Organisation Structure
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Products
In religare there are two types of major product rally and race, under both of
them they have three individual products.
Rally Race
R-ALLY R-ACE (Basic)
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Definition :
Demat account is a safe and convenient means of holding securities just like a
bank account is for funds. Today, practically 99.9% settlement (of shares) takes
place on demat mode only. Thus, it is advisable to have a Beneficiary Owner
(BO) account to trade at the exchanges.
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Bases of similarity:
Nomination Available
Facility
A safe and convenient way of holding securities (equity and debt instruments both).
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Increased liquidity, as securities can be sold at any time during the trading hours
(between 9:55 AM to 3:30 PM on all working days), and payment can be received in
a
very short period of time.
No stamp duty charges.
Risks like forgery, thefts, bad delivery, delays in transfer etc, associated with physical
certificates, are eliminated.
7. Pledging of securities in a short period of time.
8. Reduced paper work and transaction cost.
9. Odd-lot shares can also be traded (can be even 1 share).
10. Nomination facility available.
11. Any change in address or bank account details can be electronically intimated to
all
companies in which investor holds any securities, without having to inform each of
them separately.
12. Securities are transferred by the DP itself, so no need to correspond with the
companies
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WAYS OF TRADING
EQUITY: When you buy a share of a company you become a shareholder in that
company. Shares are also known as Equities. Equities have the potential to
increase in value over time. It also provides your portfolio with the growth
necessary to reach your long term investment goals. Research studies have
proved that the equities have outperformed most other forms of
investments in the long term. This may be illustrated with the help of
following examples:
a) Over a 15 year period between 1990 to 2005, Nifty has given an
annualized return of 17%.
b) Mr. Raja invests in Nifty on January 1, 2000 (index value 1592.90).
The Nifty value as of end December 2005 was 2836.55. Holding this
investment over this period Jan 2000 to Dec 2005 he gets a return of
78.07%. Investment in shares of ONGC Ltd for the same period
gave a return of 465.86%, SBI 301.17% and Reliance 281.42%.
Therefore,
Equities are considered the most challenging and the rewarding,
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Cash: A method of buying or selling securities by providing the capital needed to fund the
transaction without relying on the use of margin. Cash trading is achieved by using a cash
account, which is a type of brokerage account that requires the investor to pay for securities
within two days from when the purchase is made.
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COMMODITY:
Commodity markets are markets where raw or primary products are exchanged. These raw
commodities are traded on regulated commodity exchange in which they are bought and sold
in standardized contracts.
This article focuses on the history and current debates regarding global commodity markets.
It covers physical product (food, metals, electricity) markets but not the ways that services,
including those of governments, nor investment, nor debt, can be seen as a commodity.
Articles on reinsurance markets, stock markets, bond markets and currency markets cover
those concerns separately and in more depth. One focus of this article is the relationship
between simple commodity money and the more complex instruments offered in the
commodity markets
CURRENCY:
Currency trading is the largest market on the planet. It is estimated that in excess of $2 trillion
US Dollars (USD) is traded every day. Compare this to the New York Stock Exchange's daily
transactions of approximately $50 billion USD, and one can see that the magnitude of the
currency trading market exceeds all other equity markets in the world combined.The practice
of currency trading is also commonly referred to as foreign exchange, For ex or FX for short.
All currency has a value relative to other currencies on the planet. Currency trading uses the
purchase and sale of large quantities of currency to leverage the shifts in relative value into
profit.
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LIMIT Intraday-4times,delivery-10times
PERSON Relationship manager and dealer
APPOINTED
WAY OF Online, Branch walk in and call n trade through local
TRADING branch and call center both
CHARGES FOR `1800 and also refundable if same price of brokerage is
ONLINE DIET generated in a yr.(free in commodity)
CRN Online Back office support on clients end
GUIDENCE Calls by R.M. Dealer, sms and E mail
BROKERAGE .4% and .04% (flexible as per turnover)
Formalities
For opening an account in any broking company few formalities are there,in religare for an
equity and commodity account the following are the formalities to go with.
Commodity Equity
Pan card Pan card
Bank proof Bank proof
Address proof Address proof
2 photos 3 photos
Cancelled cheque Cancelled cheque
Free account Rs.500 cheque
Mutual funds
Securities Exchange Board of India (SEBI) is the regulatory body for all the
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mutual funds. All the mutual funds must get registered with SEBI.
NAV or Net Asset Value of the fund is the cumulative market value of the
assets of the fund net of its liabilities. NAV per unit is simply the net value of
assets divided by the number of units outstanding. Buying and selling into
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Mutual Funds do not provide assured returns. Their returns are linked to
their performance. They invest in shares, debentures, bonds etc. All these
investments involve an element of risk. The unit value may vary depending
upon the performance of the company and if a company defaults in payment
of interest/principal on their debentures/bonds the performance of the fund
may get affected. Besides incase there is a sudden downturn in an industry
or the government comes up with new a re gulation which affects a particular
industry or company the fund can again be adversely affected. All these
factors influence the performance of Mutual Funds.
Some of the Risk to which Mutual Funds are exposed to is given below:
Market risk
If the overall stock or bond markets fall on account of overall
economic factors, the value of stock or bond holdings in the fund's
portfolio can drop, thereby impacting the fund performance.
Non-market risk
Bad news about an individual company can pull down its stock price,
which can negatively affect fund holdings. This risk can be reduced
by having a diversified portfolio that consists of a wide variety of
stocks drawn from different industries.
Interest rate risk
Bond prices and interest rates move in opposite directions. When
interest rates rise, bond prices fall and this decline in underlying
securities affects the fund negatively.
Credit risk
Bonds are debt obligations. So when the funds invest in corporate
bonds, they run the risk of the corporate defaulting on their interest
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Diversified funds
These funds invest in companies spread across sectors. These
funds are generally meant for risk-averse investors who want
a diversified portfolio across sectors.
Sector funds
These funds invest primarily in equity shares of companies in
a particular business sector or industry. These funds are
targeted at investors who are bullish or fancy the prospects of
a particular sector.
Index funds
These funds invest in the same pattern as popular market
indices like S&P CNX Nifty or CNX Midcap 200. The money
collected from the investors is invested only in the stocks,
which represent the index. For e.g. a Nifty index fund will
invest only in the Nifty 50 stocks. The objective of such funds
is not to beat the market but to give a return equivalent to
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Gilt Funds
These funds invest in Central and State Government securities. Since
they are Government backed bonds they give a secured return and
also ensure safety of the principal amount. They are best suited for
the medium to long-term investors who are averse to risk.
Balanced Funds
These funds invest both in equity shares and fixed-income-bearing
instruments (debt) in some proportion. They provide a steady return
and reduce the volatility of the fund while providing some upside for
capital appreciation. They are ideal for medium to long-term
investors who are willing to take moderate risks.
b) On the basis of Flexibility
Open-ended Funds
These funds do not have a fixed date of redemption. Generally they
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are open for subscription and redemption throughout the year. Their
prices are linked to the daily net asset value (NAV). From the
investors' perspective, they are much more liquid than closed-ended
funds.
Close-ended Funds
These funds are open initially for entry during the Initial Public
Offering (IPO) and thereafter closed for entry as well as exit. These
funds have a fixed date of redemption. One of the characteristics of
the close-ended schemes is that they are generally traded at a
discount to NAV; but the discount narrows as maturity nears. These
funds are open for subscription only once and can be redeemed only
on the fixed date of redemption. The units of these funds are listed
on stock exchanges (with certain exceptions), are tradable and the
subscribers to the fund would be able to exit from the fund at any
time through the secondary market.
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Insurance
In law and economics, insurance is a form of risk management primarily used to hedge
against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer
of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a
company selling the insurance; an insured or policyholder is the person or entity buying the
insurance policy. The insurance rate is a factor used to determine the amount to be charged
for a certain amount of insurance coverage, called the premium. Risk management, the
practice of appraising and controlling risk, has evolved as a discrete field of study and
practice
The transaction involves the insured assuming a guaranteed and known relatively small loss
in the form of payment to the insurer in exchange for the insurer's promise to compensate
(indemnify) the insured in the case of a large, possibly devastating loss. The insured receives
a contract called the insurance policy which details the conditions and circumstances under
which the insured will be compensated.
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AEGON Religare Life Insurance offers insurance and pension plans specifically designed to
help you plan your life better. Select a plan based on your need – protection, saving, child or
retirement.
PROTECTION PLANS
Protection plans are Term Plans which provide only life cover. These
plans can help you get adequately covered and secure your family
financially in case of unfortunate event. These are low cost life insurance
plans
http://www.aegonreligare.com/protection-plans.php
ULIPS
Unit Linked Insurance Plans or ULIPs as they are commonly called are a
form of Savings Plans that help you save and grow your money. ULIPs
are a category of goal-based financial solutions that combine the safety of
life insurance protection with wealth creation opportunities
http://www.aegonreligare.com/saving-plans.php
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CHILD PLANS
AEGON Religare Child Plans are life insurance plans that can help you
save for your child’s future goals. This plan comes with a Waiver of
premium feature, which guarantees to waive all future premiums in event
of your demise, and ensures that your child receives full sum assured
immediately and 100% of fund value on maturity of policy.
http://www.aegonreligare.com/child-plans.php
ODIN:
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FEATURE:
Option to select touchline or weighted average price for calculation of Spread
available
Option to specify the Tick size by which the order should be modified
Option to activate Square Off mode with a Timer that has an inbuilt logic to
square off all option positions by the end of the trading day
Option to specify whether user want to do a Reverse only after a Forward
execution and vice versa
Choose from the list of built-in Arbitrage, Quote drive Arbitrage (Bidding
Model) as well as Calendar Strategies (Spread IOC) that can be applied across
selected stocks/contracts
BENEFITS:
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Eliminates any opportunity loss that arises if the same actions are to be performed
manually
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CHAPTER -2
COMPARISON
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There are several financial security companies playing their roles in Indian equity market.
But Religare faces competitions from these few companies.
ICICI Direct.com
Kotak Securities.com
India Bulls
HDFC Securities
5paisa.com
Motital Oswal
IL&FS
Karvy
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INDIA BULLS:
Indiabulls Securities Limited (ISL) is the pioneer in Retail Broking Industry having a pan
India presence and providing services to a customer base exceeding half a million. ISL is in
the business of providing securities broking and advisory services and is a corporate member
of capital market, wholesale debt market and derivative segment of NSE and of the capital
market and derivative segment of BSE. ISL is the first and only brokerage house to be
assigned the highest rating BQ-1 by CRISIL.
The company through various types of brokerage accounts provides product and services
related to purchase and sale of securities listed in NSE and BSE. It also provides depository
services, equity research services, mutual fund, IPO distribution to its clients. The company
provides these services through on-line and off-line distribution channel.
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SHAREKHAN SECURITIES :
Sharekhan Securities is one of the leading retail brokerage 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 has over eight decades of experience in the stock broking business.
Sharekhan offers its customers a wide range of equity related services including trade
execution on BSE, NSE, Derivatives, depository services, online trading, investment advice
etc.
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ANANDRATHI SECURITIES
Anand Rathi is a leading full service investment bank founded in 1994 offering a wide
range of financial services and wealth management solutions to institutions, corporations,
high–net worth individuals and families. The firm has rapidly expanded its footprint to over
350 locations across India with international presence in Dubai & New York. Founded by
Mr. Anand Rathi and Mr. Pradeep Gupta, the group today employs over 2,500 professionals
throughout India and its international offices.
HDFC SECURITIES:
HDFC Securities, a trusted financial service provider promoted by HDFC Bank and JP
Morgan Partners and their associates, is a leading stock broking company in the country,
serving a diverse customer base of institutional and retail investors.
HDFCsec.com provides investors a robust platform to trade in Equities in NSE and BSE , and
derivatives in NSE. Our website will support you with the highest standards of service,
convenience and hassle-free trading tools.
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RELIANCE:
The Company was established in the right momentum during the growth of stock exchange
era. Since the commencement in 1993 and joining with the Reliance Group in 2003, the
Company continues to grow becoming one of securities brokerage and financial services
company that is getting more and more recognition from the stock market industry in
Indonesia.
In 2005, the Company broadened its financial activities by forming a newly subsidiary
company PT Reliance Asset Management, to provide investment and wealth management
services. In July 13th, 2005 Reliance has become a listed company by registering in Jakarta
Stock Exchange (now “Indonesia Stock Exchange”), with stock code of “RELI”, making the
Company as the first joint venture publicly listed securities company in Indonesia, and since
October 2007, RELI has noted in the main board of Indonesia Stock Exchange.
In accordance with its mission, the Company continues to focusv on the development of
human resources. Supported by about 126 employees, the Company gives high appreciation
to the power of process, willingness to learn, a self-drive to go forward, and hard work.
Empowered by those qualities, the company is ready to face competitive challenges by giving
a comprehensive financial solutions, keeps providing and improving its financial service
products of investment banking and stock market services, and to develop a strong foundation
for a sustainable and continuous
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CHAPTER –
3
FINDINGS & ANALYSIS
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Preference of Investment
16%
7% 2%
Only shares
Mutual funds
75% Bonds
Derivatives
Interpretation: This shows that although the mutual funds market is on the rise yet, the most
favored investment continues to be in the Share Market. So, with a more transparent system,
investment in the Stock Market can definitely be increased.
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Yes
91%
Interpretation: With the increase in cyber education, the awareness towards online share
trading has increased by leaps and bounds. This awareness is expected to increase further
with the increase in Internet education.
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43%
YES
NO
57%
Interpretation: This pie chart shows that Religare has a reasonable amount of Brand
awareness in terms of a premier Retail stock broking company. The company to increase its
market share over its competitors should further leverage this brand image.
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17%
Yes
No
83%
Int
erpretation: Although there is sufficiently low brand equity among the target audience yet, it
is to be noted that the customers are not aware of the facilities provided by the company
meaning thereby, that, the company should concentrate more towards promotional tools and
increase its focus on product awareness rather than brand awareness.
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26%
12% Religare
ICICI Direct
31%
Kotak Securities
24%
IndiaBulls
7%
Others
Interpretation: This shows that even with sufficiently high Brand Equity, Religare ranks
only 3rd amongst the Demat account providers. This is probably because of two main reasons:
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Hence, the company should crystallize its products and should indulge in aggressive
marketing and promotion.
Interpretation: This pie chart accentuates the fact that Strategic marketing, today, has gone
beyond only meeting Sales targets and generating profit volumes. It shows that all the
competitors are striving hard not only to woo the customers but also to make them Brand
loyal by generating customer satisfaction.
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Frequency of Trading
Daily- 9%
Weekly- 27%
Monthly-53%
Yearly-11%
Interpretation: In spite of the huge returns that the share market promises, we see that there
is still a dearth of active traders and investors. This is because of the non – transparent
structure of the Indian share market and the skepticism of the target audience that is
generated by the volatility of the stock market. It requires efficient bureaucratic intervention
on the part of the Government.
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Interpretation: This shows that people invest only upto 10% of their earnings in the
stock market, again reiterating the volatile and non-transparent structure of the Indian stock
market. Hence, effective and efficient steps should be undertaken to woo the customers to
invest more in the lucrative stock market.
RATIO ANALYSIS
Liquidity refers to the ability of a firm to meet its financial obligations in the
short-term which is less than a year. Certain ratios, which indicate the
liquidity of a firm, are (i) Current Ratio, (ii) Acid Test Ratio, (iii) Turnover
Ratios. It is based upon the relationship between current assets and current
liabilities.
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The current ratio measures the ability of the firm to meet its current
liabilities from the current assets. Higher the current ratio, greater the
short-term solvency (i.e. larger is the amount of rupees available per rupee
of liability).
(ii) Acid-test Ratio =Current Liabilities/Quick Assets
Quick assets are defined as current assets excluding inventories and prepaid
expenses. The acid-test ratio is a measurement of firm’s ability to convert
its current assets quickly into cash in order to meet its current liabilities.
Generally speaking 1:1 ratio is considered to be satisfactory.
Fixed Assets turnover ratio measures sales per rupee of investment in fixed
assets. In other words, how efficiently fixed assets are employed. Higher
ratio is preferred. It is calculated as follows:
Fixed Assets turnover ratio =NetFixedAssets/Net.Sales
Total Assets turnover ratio measures how efficiently all types of assets are
employed.
Total Assets turnover ratio =AverageTotalAssets/Net.Sales
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The second set or the coverage ratios measure the relationship between
proceeds from the operations of the firm and the claims of outsiders.
(iii) Interest Coverage ratio =Interest /Earnings Before Interest and Taxes
Higher the interest coverage ratio better is the firm’s ability to meet its
interest burden. The lenders use this ratio to assess debt servicing capacity
of a firm.
(iv) Debt Service Coverage Ratio (DSCR) is a more comprehensive and apt
to compute debt service capacity of a firm. Financial institutions calculate
the average DSCR for the period during which the term loan for the project
is repayable. The Debt Service Coverage Ratio is defined as follows:
Interest onTerm loan payment of term loan
ofit after tax Depreciation OtherNoncashExpenditure Interest on term loan
(Net worth includes Shareholders’ equity capital plus reserves and surplus)
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CHAPTER- 4
RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
Research can be defined as systemized effort to gain new knowledge. A research is carried
out by different methodologies which have their own pros and cons. Research methodology is
a way to solve research in studying and solving research problem along with logic behind
them are defined through research methodology. Thus while talking about research
methodology we are not only talking of research methods but also considered the logic
behind the methods. We are in context of our research studies and explain why it is being
used a particular method or technique and why the others are not used. So that research result
is capable of being evaluated either by researcher himself or by others
Research has its special significance in solving various operational and planning problems of
business and industry. Research methodology is the way to systematically solve the research
problem.
Execution of the project: -
It is the very important step in the research process accuracy findings depends on how
systematically the study has been carried out in time so that it can make some sense when
required. I have executed the project after prior discussion with the guide and structured in
following steps:
a. Preparation of questionnaire.
b. Collection of list of some of the broking houses so that more interaction is
possible and the variety of responses can be registered to have a good data for
analysis.
c. Visiting and asking about their feedback on the financial services like share
broking, mutual fund, etc.
1. Data requirements --
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3. Secondary data –
1. Questionnaire
2.Telephonic communication.
3. E-mail.
Sample
A finite subset of population, selected from it with the objective of investigating its properties
called a sample. A sample is a representative part of the population. A sample of 11
respondents in total has been randomly selected. The response to various elements under each
questions were totaled for the purpose of various statistical testing.
Presentation of Data.
The data are presented through charts and tables.
Tools and Techniques for Analysis.
MS EXCEL is used to for analysis and interpretation of data
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CHAPTER-
5
CONCLUSION
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CONCLUSION
Through this study we get through all the differences between different broking houses and
their benefits of investing individually. From this we have also understand the point of view
of investors to invest their money with the right company at the right time.
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Recommendations:-
There should be a limited number of clients under the relationship manger. So that he
can handle new as well as old customer properly
Some promotional activities are required for the awareness of the customer
In the organization, There must me be co-operation with other department and other
branches
publicity.
Give more demonstration to customers so that they can get complete knowledge
Give the complete information about products and services offered by the company to
the customers.
The number of branches it has at present should be increased all over the country,
which will attract a large number of customers.
Company should educate about the rules and regulations of SEBI to its customers.
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Bibliography:
1. axis.religare.in
2. http://www.scribd.com/doc/23929048/Report-on-comparitive-study-of-brokerage-plans-
with-religare
4. http://www.scribd.com/doc/24404957/%E2%80%9CComparative-Study-of-Online-
Trading-For-Religare-Securities-Motilal-Oswal%E2%80%9D
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Questionnaire
Name Age
Occupation
a) 0 to 10%
b) 10% to 25%
c) 20% to 30%
d) 30% to 40%
a) Securities
b) Mutual funds
c) Commodities
d) Insurance
e) Other instrument
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a) Yes
b) No
a) Yes
b) No
a) Online
b) Offline
a) INDIA BULLS
c) KOTAK
d) RELIGARE
d) ICICI direct
e) SHARE KHAN
f) Others
a) Yes
b) No
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a) Everyday
a) Yes
b) No
a) 0.01% to 0.02%
b) 0.02% to 0.03%
c) 0.03% to 0.004%
d) 0.04% to 0.05%
e) 0.05% or more
a) 0.1% to 0.2%
b) 0.2% to 0.3%
c) 0.3% to 0.4%
d) 0.4% to 0.5%
e) 0.5% or more
a) Yes
b) No
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