Professional Documents
Culture Documents
The Indian capital markets have seen a lot of economic swing since last decade
but still it has been flourishing with rapid transformations. Reforms are continuing
and are bringing a lot of change in structure, process and governance of capital
market. This is helping Indian capital market to gain an image of mature market
place in the capital markets of the world. The working mechanism are now more
flexible and transparent. The stock exchanges has been corporatized too. Other
than this new instruments like index future, index options, derivatives etc. has
been introduced.
Out of the major players showing their presence in the financial markets,
Reliance Money is the one. Reliance Money is promoted by Reliance Capital;
one of India's leading and fastest growing private sector financial services
companies, ranking among the top 3 private sector financial services and
banking companies, in terms of net worth. During past few years, it has picked up
a considerable market share in the sector of financial services.
During the internship, a research has been carried out on the on the topic “A
study of investor behaviour at Reliance Money”. The objectives of the research
were to create awareness about various products and services of the Reliance
Money and to know about the investor behaviour and their preferences towards
investment decisions and considerations. Other than this, the research included
the study of position of Reliance Money in the market and its comparative
position with other players.
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Descriptive research was used in the whole project. The data was collected
through meeting investors and potential investors in various areas of Chandigarh
and questionnaires were filled on the basis of their responses. The collected data
was analyzed using percentage method.
As a result of research, it was concluded that Reliance Money has a good brand
image but it still has to work upon in various areas to excel in the financial sector.
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Chapter 1 – INDUSTRY PROFILE
The US$ 28 billion Indian financial sector has grown at around 15 per cent and
has displayed stability for the last several years, even when other markets in the
Asian region were facing a crisis. This stability was ensured through the
resilience that has been built into the system over time. The financial sector has
kept pace with the growing needs of corporate and other borrowers. Banks,
capital market participants and insurers have developed a wide range of products
and services to suit varied customer requirements. The Reserve Bank of India
(RBI) has successfully introduced a regime where interest rates are more in line
with market forces.
Financial institutions have combated the reduction in interest rates and pressure
on their margins by constantly innovating and targeting attractive consumer
segments. Banks and trade financiers have also played an important role in
promoting foreign trade of the country.
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1.2 Capital Market
The Indian capital markets have witnessed a transformation over the last decade.
India is now placed among the mature markets of the world. Key progressive
initiatives in recent years include:
• The depository and share dematerialisation systems that have enhanced the
efficiency of the transaction cycle
• Replacing the flexible, but often exploited, forward trading mechanism with
rolling settlement, to bring about transparency
• The infotech-driven National Stock Exchange (NSE) with a national presence
(for the benefit of investors across locations) and other initiatives to enhance the
quality of financial disclosures.
• Corporatization of stock exchanges.
• The Securities and Exchange Board of India (SEBI) has effectively been
functioning as an independent regulator with statutory powers.
• Indian capital markets have rewarded Foreign Institutional Investors (FIIs) with
attractive valuations and increasing returns.
• The Mumbai Stock Exchange continues to be the premier exchange in the
country with an increase in market capitalisation from US$ 40 billion in 1990-
1991 to US$ 203 billion in 1999-2000. The stock exchange has about 6,000
listed companies and an average daily volume of about a billion dollars
• Many new instruments have been introduced in the markets, including index
futures, index options, derivatives and options and futures in select stocks.
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1994. The Capital Market (Equities) segment of the NSE commenced operations
in November 1994, while operations in the Derivatives segment commenced in
June 2000.
Since the early 1950s till the early 1990s, Indian policy makers had been
nourishing the goal of Socialist pattern of society. They had been following the
development planning strategy of the former Soviet Russia in a mixed economic
framework. From July 1991, in the face of an unprecedented foreign exchange
crisis, Indian economy started experiencing an IMF-World Bank dictated regime
of liberalisation.
One aspect of this is financial liberalisation. There is a move towards privatisation
of nationalised banks – these banks are selling their shares in the stock market.
Transnational banks are encouraged to operate in the Indian banking sector.
Attempts are made to attract foreign direct investment in different sectors. There
is an increasing entry of foreign portfolio capital due to stock market
liberalisation. People are encouraged to invest in stocks through income tax
benefits and abolition of capital gains tax. There is a move to develop a national
pension fund which will be invested in different stocks to get returns out of which
pension will be provided to retired people. It is expected that boosting up of stock
market will accelerate the process of capital accumulation and growth.
Stock market development has been an important part of financial liberalisation
in the less developed countries (LDCs). In the pro-liberalisation circle, stock
market is assigned to play an important role in the capitalist development of
LDCs.
There are many studies supporting the positive link between stock market
development and growth. Let us mention some of the recent studies. One
important study was undertaken by Levine and Zervos (1998). Their cross-
country study found that the Development of banks and stock markets has a
positive effect on growth. In another study Levine (2003) argued that although
theory provides ambiguous relationship between stock market liquidity and
economic growth, the cross-country data for 49 countries over the period 1976-
93 suggest a strong and positive relationship (see also Levine, 2001). Henry
(2000) studied a sample of 11 LDCs and observed that stock market
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liberalisations lead to private investment boom. Recently, Bekaert et al (2005)
analysed data of a large number of countries and observed that the stock market
liberalisation ‘leads to an approximate 1 % increase in annual real per capita
GDP growth’.
There are some economists who are sceptical. Long time back Keynes (1936)
compared the stock market with casino and commented: ‘when the capital
development of a country becomes the by-product of the activities of a casino,
the job is likely to be ill-done’.
Referring to the study of World Bank (1993) , Singh (1997) pointed out that stock
markets have played little role in the post-war industrialisation of Japan, Korea
and Taiwan. He argued that the recent move towards stock market liberalisation
is ‘unlikely to help in achieving quicker industrialisation and faster long-term
economic growth’ in most of the LDCs.
In this perspective this study examines the nature of relationship between stock
market and growth through capital accumulation in India.
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Limited, Infosys, Tata, Birla Corporation, Jet Airways, Ranbaxy, Biocon, Bajaj
Auto, ICICI are breaking their own records every financial years.
Indian Equity Market at present is a lucrative field for the investors and investing
in Indian stocks are profitable for not only the long and medium-term investors,
but also the position traders, short-term swing traders and also very short term
intra-day traders. In terms of market capitalization, there are over 2500
companies in the BSE chart list with the Reliance Industries Limited at the top.
There are about 22 stock exchanges in India which regulates the market trends
of different stocks. Generally the bigger companies are listed with the NSE and
the BSE, but there is the OTCEI or the Over the Counter Exchange of India,
which lists the medium and small sized companies. There is the SEBI or the
Securities and Exchange Board of India which supervises the functioning of the
stock markets in India.
Thus, the growing financial capital markets of India being encouraged by
domestic and foreign investments is becoming a profitable business more with
each day. If all the economic parameters are unchanged Indian Equity Market will
be conducive for the growth of private equities and this will lead to an overall
improvement in the Indian economy.
Indian Stock Market including both NSE-National Stock Exchange and the BSE-
Bombay Stock Exchange have certainly taken a tremendous beating in the past
few weeks. We are sure most of us here knew that the correction in the trading
curve was round the corner which would be healthy, and the markets would
bounce back with the help of mutual fund investments & buying of Indian stocks
again. However the anticipation went wrong, and the US recession story along
with global and Indian commodity prices have added fuel to the global equity
market turmoil on a whole.
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4. Multiplication or loss of share certificates in transit.
5. Prevalence of fake certificates in the market.
The physical form of holding and trading in securities also acts as a bottleneck
for broking community in capital market operations.
The introduction of NSE and BOLT has increased the reach of capital market
manifolds. The increase in number of investors participating in the capital market
has increased the possibility of being hit by a bad delivery. The cost and time
spent by the brokers for rectification of these bad deliveries tends to be higher
with the geographical spread of the clients. The increase in trade volumes lead to
exponential rise in the back office operations thus limiting the growth potential of
the broking members. The inconvenience faced by investors (in areas that are far
flung and away from the main metros) in settlement of trade also limits the
opportunity for such investors, especially in participating in auction trading. This
has made the investors as well as broker wary of Indian capital market. In this
scenario, dematerialized trading is certainly a welcome move.
The Process
1. Surrendering of certificate to Depository Participants for
dematerialization.
2. NSDL is informed by the DP through electronic connectivity.
3. Original share certificates are submitted to the registrar by the DP.
4. The request for dematerialization from NSDL to the register.
5. The registrar credits an equivalent number of shares in the account
and informs NSDL.
6. The NSDL updates its own account and the depository participants are
informed.
7. The depository agent credit it in the account of the investor and the
same is informed to the investor.
1.6.3 Rematerialisation
Sometimes the investor may like to convert his electronic holdings back into
physical share certificate. The process undertaken for this purpose is called
rematerialisation. The investor has to make a request to the depository
participant for rematerialisation. The depository participant puts forward the
request to NSDL after verifying whether the investor in having necessary security
balances. NSDL in turn will intimate the registrar who prints the certificate and
dispatch the same to the investor. The certificate has a new range of certificate
numbers and new folio number.
The Process
1. Investor requests the DP for rematerialisation.
2. The depository participant informs it to the NSDL.
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3. NSDL intimates the Registrar.
4. The Registrar of the company prints certificates with new number and
informs NSDL.
5. NSDL adjusts its account and passes on the details to the DP.
6. The certificates are dispatched to the investor.
Bank Depository
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opened so as to offer the facility as soon as the relevant amendments are
effected in the Law.
A client can choose to open more than one account with same DP. In addition to
this, he has a choice of opening accounts with more than one DP. However a
broker can open just one Clearing Member account per card/ stock exchange for
clearing purpose, but he can still open multiple beneficiary accounts Beneficiary
is the personal account wherein brokers can keep their personal holdings.
A broker has only one Clearing Member-pool-account. One Clearing Member
pool account is opened per card/ stock exchange to settle trades in the
dematerialized form. The Clearing Corporation/ House just deals with one
designated account for pay-in and payout and the broker's clients know to which
account they have to deliver and receive securities from.
A clearing member cannot hold his personal holdings in his clearing member
account. A broker may deal in the depository system as a clearing member only
through a special account, known as the Clearing Member account. This account
can be used only for clearing purposes and not for holding his own securities in
it. As this is a transitory account, the securities held in this account are not
eligible for corporate actions. Therefore, the broker will have to open a separate
beneficiary owner account to hold his investments.
There is no compulsion for the client to open his account with the same DP as
that of his broker. Even if he has an account with another DP, he can carry out
normal business with his broker. There is no loss in operational efficiency. But it
is possible that opening account with his broker's DP may work out to his
advantage, as some DPs may offer special charge structure if the broker and his
clients are dealing through him.
1.6.7 Trading
Trading in dematerialized securities is quite similar to trading in physical
securities. The major difference is that at the time of settlement, instead of
delivery/ receipt of securities in the physical form, it is done through account
transfer.
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An investor cannot trade in dematerialized securities through his DP. Trading at
the stock exchanges can be done only through a registered trading member
(broker) of the stock exchange irrespective of whether the securities are held in
physical or dematerialized form. DPs role will only be to facilitate settlement of
trade in the dematerialized form, by transferring securities from and to the
account of the investor, for selling and buying respectively.
Trading in dematerialized securities is presently available at NSE, BSE, CSE,
DSE,LSE, MSE, ISE & OTCEI. These exchanges have a segment exclusive for
trading in dematerialized securities and a segment where trades could be settled
either in the physical or in the dematerialized form as per the choice of the
delivering client. In unified (erstwhile - physical) segment securities can be
delivered either in the physical form or in the dematerialized form at the choice of
the delivering party.
However, securities that have to be mandatorily settled in demat form (both by
institutional investors & all category of investors) cannot be settled in physical
form. Also for securities that have to be mandatorily settled in demat form by all
categories of investors the concept of market lot is eliminated i.e. the tradable lot
is one share from the date they become compulsory.
1.6.8 Settlement
The settlement of trades in the stock exchanges is undertaken by the clearing
corporation (CC)/ clearing house (CH) of the corresponding stock exchanges.
While the settlement of dematerialized securities is effected through depository,
the funds settlement is effected through the clearing banks. The clearing
members directly with the CC/ CH settle the physical securities.
Exclusive Demat segment follows rolling settlement (T+5) cycle and the unified
(erstwhile - physical) segment follows account period settlement cycle. In case of
rolling settlement cycle, the account period is reduced to one day.
• In case of settlement of trades done in exclusive Demat segments, the pay-in
and pay out of funds and securities are effected on the same day afternoon
and evening (same day) thus reducing the blockage of funds and limiting
exposure to the clearing corporation.
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• Settlement of funds is effected through the clearing banks and depository
plays no role in this.
• Settlement of securities is effected through NSDL depository system.
• Clearing and settlement of the regular market trades is affected through the
clearing members of the clearinghouses of respective stock exchanges. All
trading members of stock exchanges are clearing members of clearing
houses. In addition, for settlement of institutional trades, custodians are also
allowed to act as clearing members.
• Clearing members of clearinghouse, dealing in dematerialized securities are
expected to open a clearing account with any DP for the purpose of settling
trades in dematerialized securities. As, in the mixed (unified) segment, there
is a possibility for all clearing members to receive dematerialized securities,
they are expected to open clearing accounts.
• If there is any short delivery at the time of pay-in of securities, these short
positions are auctioned in the Demat segment as done in the Unified
(erstwhile-physical) segment.
For trades executed on Wednesday (TD 1):
• Final/ Net obligation statement download - Friday (T+2nd working day)
• Settlement day (SD 1) i.e. pay in and pay out of funds and securities - next
Wednesday (T+5th working day)
• Auction trade day (ATD 1) - next Thursday (T+6th working day)
• Auction settlement day (ASD 1) - Monday (2nd working day from auction
trade day i.e. T+8th working day)
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1.7 KEY PLAYERS IN THE INDUSTRY
There are huge number of players existing in the market. Some of the main
players have been briefed below
1.7.1 Religare
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Pursuant to expansion of REL's business, the company has grown from largely
an equity trading company into a diversified financial services company. With the
addition of RHH the REL group now operates out of multiple global locations,
other than India, (the UK, the USA, Brazil, South Africa, Dubai and Singapore).
Among the leading service provider in Capital Market In a span of less than five
years of its retail operations, RSL recorded a healthy growth rate both in
business volumes and profitability. In recent times, the market share has
increased from 3.46% in Q4 FY08 to 3.86% Q1 FY09. Major portion of earning
were contributed by broking related activities and for the first quarter of FY09, it
accounted for 40% of revenues. Quarterly Total Revenue recorded at Rs.
2,887.49 mn, EBIDTA at Rs. 1,184.17 mn and Profit after tax at Rs. 36.68 mn
Angel Broking's tryst with excellence in customer relations began in 1987. Today,
Angel has emerged as one of the most respected Stock-Broking and wealth
management companies in India. With its unique retail-focused stock trading
business model, it is committed to providing ‘Real Value for Money’ to all its
clients.
Angel broking ltd. already has a good presence in India and offers world-class
financial planning and a wide range of wealth management products to mass
affluent and affluent customer segments. Angel Broking limited provides a
complete range of financial products and services that include equity broking
(internet based online trading as well as offline trading), financial planning,
insurance, investment products, equity research, demat account and more.
It is one of the leading and professionally managed stock broking firm involved in
quality services and research. The membership of the company with The Stock
Exchange Mumbai was originally in the name of Mukesh R. Gandhi, which was
eventually turned into a corporate membership in the name of Angel Broking
Limited. Angel Broking Limited is managed by Mr. Dinesh Thakkar, founder
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chairman and managing director and he is well supported by Mr. Mukesh Gandhi,
a fifteen years veteran in the market.
The group is well supported by a professional and qualified research team and
efficient operations and back office team, which comprises of highly dedicated
and qualified individuals. It has an in-house, state of art research department.
Angel Broking Limited is primarily into retail stock broking, with a customer base
of retail investors, which has been increasing at a CAGR of 100% every year.
The company has huge network sub-brokers in Mumbai and other places outside
Mumbai, registered with SEBI, who act as Chanel partners for the company. The
company presently has total staff strength of around 150 employees who are
spread accordingly across the head office and all the branches.
It has also empowered its physical presence throughout India through various
strategies which it has been adopting efficiently and effectively over a period of
time, like opening up of branches at various places, tie-ups with various agencies
and sales agents, buy-outs of smaller regional outfits and appointment of sub-
brokers and franchisees. Moreover, Angel has been tapping and including high
net worth and self-employed individuals it its vast array of clients.
Angel has always strived in the direction of delivering ultimate client satisfaction
and developing stronger bonds with its customers and chose partners. Angel has
a vision to introduce new and innovative products and services regularly.
Moreover, Angel has been one among the pioneers to introduce the latest
technological innovations and integrate it efficiently within its business.
1.7.3 Karvy
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Karvy Consultants Limited was established in 1982 at Hydrabad. It was
established by a group of Hydrabad-based practicing Chartered Accountants. At
initial stage it was very small in size. It was started with a capital of Rs. 1,50,000.
In starting it was only offering auditing and taxation services. Later, it acts into the
Registrar and Share transfer activities and subsequently into financial services
and other services like Financial Product Distribution, Investment Advisory
Services, Demat Services, Corporate Finance, Insurance etc.
All along, Karvy’s strong work ethics and professional background leveraged with
Information Technology enabled it to deliver quality to the individual. A decade of
commitment, professional integrity and vision helped. Karvy achieving a
leadership position in its field when it handled largest number of corporate and
retail that proved to be a sound business synergy.
Karvy ranks among the top player in almost all the fields itoperates. Karvy
Computershare Limited is India’s largest Registrar and Transfer Agent with a
client base of nearly 500 blue chip corporates, managing over 2 crore accounts.
Karvy Stock Brokers Limited, member of National Stock Exchange of India and
the Bombay Stock Exchange, ranks among the top 5 stock brokers in India. With
over 6,00,000 active accounts, it ranks among the top 5 Depositary Participant in
India, registered with NSDL and CDSL. Karvy Comtrade, Member of NCDEX and
MCX ranks among the top 3 commodity brokers in the country. Karvy Insurance
Brokers is registered as a Broker with IRDA and ranks among the top 5
insurance agent in the country. Registered with AMFI as a corporate Agent,
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Karvy is also among the top Mutual Fund mobilizer with over Rs. 5,000 crores
under management. Karvy Realty Services, which started in 2006, has quickly
established itself as a broker who adds value, in the realty sector. Karvy Global
offers niche off shoring services to clients the US.
Karvy has 575 offices over 375 locations across India and overseas at Dubai
and New York. Over 9,000 highly qualified people staff The company adds 5 new
offices every month to the company’s ever growing national network in every
nook and corner of the country. The company service over 16 million individual
investors, 180 corporate and handle corporate disbursements that exceed
Rs.2500 Crores.
Motilal Oswal Securities Ltd. (MOSL) was founded in 1987 as a small sub-
broking unit, with just two people running the show. Focus on customer-first-
attitude, ethical and transparent business practices, respect for professionalism,
research-based value investing and implementation of cutting-edge technology
has enabled us to blossom into an almost 2000 member team.
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Today it is a well diversified financial services firm offering a range of financial
products and services such as Wealth Management, Broking & Distribution,
Commodity Broking, Portfolio Management Services, Institutional Equities,
Private Equity, Investment Banking Services and Principal Strategies.
It has a diversified client base that includes retail customers (including High Net
worth Individuals), mutual funds, foreign institutional investors, financial
institutions and corporate clients. We are headquartered in Mumbai and as
of June 30th, 2009, had a network spread over 555 cities and towns comprising
1,308 Business Locations operated by our Business Partners and us. As at June
30th, 2009, we had 5,57,373 registered customers.
Motilal Oswal Securities Ltd. enters 'Limca Book of Records' for creating India's
largest dealing room in Mumbai. It was 'Rated No.1 – Best recommendations Mid
& Small Caps' and won awards in 3 out of 4 categories at the Starmine India
Broker Rankings 2009 from Thomson Reuters
Kotak Securities Limited, a 100% subsidiary of Kotak Mahindra Bank, is the stock
broking and distribution arm of the Kotak Mahindra Group. Kotak Mahindra is one
of India's leading financial institutions, offering complete financial solutions that
encompass every sphere of life. From commercial banking, to stock broking, to
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mutual funds, to life insurance, to investment banking, the group caters to the
financial needs of individuals and corporate. Kotak also offers stock broking
through the branch and Internet, Investments in IPO, Mutual funds and Portfolio
management service.
India Infoline Ltd is listed on both the leading stock exchanges in India, viz. the
Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE). The
India Infoline group, comprising the holding company, India Infoline Ltd and its
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subsidiaries, straddles the entire financial services space with offerings ranging
from Equity research, Equities and derivatives trading, Commodities trading,
Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits
and other small savings instruments to loan products and Investment banking.
India Infoline also owns and manages the websites.
India Infoline Limited is listed on both the leading stock exchanges in India, viz.
the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and
is also a member of both the exchanges. It is engaged in the businesses of
Equities broking, Wealth Advisory Services and Portfolio Management Services.
It offers broking services in the Cash and Derivatives segments of the NSE as
well as the Cash segment of the BSE. It is registered with NSDL as well as CDSL
as a depository participant, providing a one-stop solution for clients trading in the
equities market. It has recently launched its Investment banking and Institutional
Broking business
2.1 Introduction
Reliance Money is promoted by Reliance Capital; one of India's leading and
fastest growing private sector financial services companies, ranking among the
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top 3 private sector financial services and banking companies, in terms of net
worth. Reliance Money is a part of the Reliance Anil Dhirubhai Ambani Group.
Investment Banking, Mutual Funds, IPOs, Life and General Insurance products
and Gold Coins. Customers can also avail Loans, Credit Card, Money Transfer
and Money Changing services. Reliance Capital Ltd. has also interests in asset
management, life and general insurance, private equity and proprietary
investments, stock broking and other financial services.
Reliance Money is the largest broker and distributor of financial products in India
with the largest distribution network and almost over 3,174 employees. Money
has increased its market share among private financial companies to nearly
Convenient & effective – Anytime & anywhere financial transaction
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2.2 Vision
To build a global enterprise for all our stakeholders, and
A great future for our country,
To give millions of young Indians the power to shape their destiny,
The means to realize their full potential…
2.3 Mission
To create and nurture a world-class, high performance environment aimed at
delighting our customers by providing endless financial products in all part of the
country.
2.5 Achievements
2.5.1 List of recent achievements
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• In two successive joint surveys by The Economic Times’ Brand Equity and
ACNielsen, Reliance was recognized as India’s Most Trusted Mutual
Fund.
• The company also walked away with seven other scheme prizes – five of
them being outright winners – in the Gulf 2007 Lipper Awards. These
included the Fund House of the Year by Lipper GCC as well as ICRA
Online and the Most Improved Fund House by Asia Asset Management.
• It also received the NDTV Business Leadership Award 2007 in the mutual
fund category and runners’ up recognition as the Best Fund House in the
Outlook Money-NDTV Profit Awards.
• The company also won the India Equities award in the 5-yearPerformance
category.
• Reliance Money generated revenues of Rs. 35 billion (US$ 767 million) for the
year March 31, 2009 as against Rs. 24 billion of the corresponding previous
period, an increase of 48%. It also achieved a net profit of Rs. 368 million (US$ 8
million) for the same period, as against a net profit of Rs. 1 million for the
corresponding previous period
• Reliance Money is the one of the leading brokerage and distributor of financial
products in India with more than 3 million customers
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• Reliance Money has tied up with global partners like Reuters, Vasco, Valcambi,
Webaroo, optionsXpress Holdings, Goldride Securities, World Gold Council,
Wincor Nixdorf and DBS Vickers to facilitate better access to wider world class
choices to its customers
• To further improve its position in the money changing and money transfer
business, Reliance Money has acquired a significant share holding in Wall Street
Finance Ltd, a leading provider of money changing and money transfer services
in the Country
• Reliance Money has tied up with Kuoni India and plans to retail its forex
products/services through the national network of over 70 Kuoni outlets
• Reliance Money has tied up with India Post and World Gold Council to sell gold
coins through the post office network across the country
• Reliance Money has obtained Category I Merchant Banking License from the
Securities and Exchange Board of India. This new license allows Reliance
Money to provide a wide range of investment banking services such as Issue
Management, Underwriting, Private Equity Advisory/ Syndication and Corporate
Finance services in India
• Reliance Money is taking its first steps into the Commodities Exchange
business and is in the process of acquiring a 15 per cent stake in Hong Kong
Mercantile Exchange (HKMEx). With this holding, Reliance Money becomes the
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second-largest shareholder in the commodity exchange and will have a board
membership. Reliance Money is the first Indian firm to acquire a stake in an
international exchange
• It has also obtained approval from the Ministry of Consumer Affairs for acquiring
10% stake in the National Multi-Commodity Exchange of India Ltd. (NMCE).
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Basic structure of Reliance ADA group
Chart 2.1
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Organizational Structure
Chart 2.2
Chart 2.3
The Centre manager is the Heart of the office who acts as a connection between
Head office (Mumbai), National head, Zonal head, Regional head, Area head,
Cluster head, The Clients, Remisars, Business associates and the Business
development executives.
The Centre manager is responsible for the following functions;
1. Organizing all the BDE’s, Business Associates and Remisars under one
banner.
2. Making sure that the BDE’s, Business Associates and Remisars are
carrying out their functions well i.e. expanding the business in form of
selling the Share trading A/c’s , mutual funds, selling general along with
life insurance policies .
3. Planning strategies for increasing the business (i.e. installation of
canopies at the right place, appropriate advertising in different business
Expo’s or corporate meets. Etc.)
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4. Interviewing and Selecting Business development executive for the
organization.
5. Identifying the potential agents in the market and making them the
business associate or remisar of Reliance Money for good business
prospects.
6. Assisting the new BDE’s or remisars in handling the clients.
7. Training the new BDE’s and the remisars about the product and how to
approach the clients.
8. Reporting the regional head on the daily basis about the daily business
performed.
.
Demat account
There are many broking houses doing business in India and they charge a
brokerage on every transaction made online or offline. (Buying and Selling are
treated as separate transaction). Reliance Money’s advantage over others is that
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it’s charging the lowest brokerage in the market which is just 1 paisa on every
executive trade irrespective of the volume traded. Reliance Money, the
brokerage and distribution arm of Reliance ADA Group, aims to tap investors in
the smaller towns and cities through a flat fee structure.
The new wonder is Reliance Money's pre-paid card for stock market brokerage.
Reliance Money, the financial services division of Anil Dhirubhai Ambani Group-
promoted Reliance Capital, is bringing to the market pre-paid cards in
denominations of Rs500, Rs1,000, Rs. 2500, Rs. 5,000 and Rs.10,000.
Target low level of retail penetration in India - less than 3 per cent of household
financing savings makes it into equity markets.
• Equities
Equity investment generally refers to the buying and holding of shares of stock
on a stock market by individuals and funds in anticipation of income from
dividends and capital gain as the value of the stock rises. It also sometimes
refers to the acquisition of equity (ownership) participation in a private (unlisted)
company or a startup (a company being created or newly created).
• Commodities
A single platform to trade on both the major commodity exchanges i.e. NCDEX
and MCX. In addition In-house research desk shall provide research reports on
all major commodities which shall enable in getting views for trading and diversify
client’s holdings. Trade Execution assistance is also provided to clients.
• Offshore Investments
Offshore investment is the keeping of money in a jurisdiction other than one's
country of residence. Offshore jurisdictions are a commonly accepted solution to
reducing excessive tax burdens levied in most countries to both large and small
Page | 35
scale investors alike. The advantage to this is that such operations are both legal
and less costly than the solutions offered in the investor's country - or "onshore".
Offshore solutions are accessible to anyone who can meet the minimum
investment amount or pay the obligatory fees required to open such an entity.
Another reason why 'offshore' investment is superior to 'onshore' investment is
because it is less regulated, and the behavior of the offshore investment provider,
whether he be a banker, fund manager, trustee or stock-broker, is freer than it
could be in a more regulated environment. Reliance Money has already tied-up
with CMC Capital Plc UK to offer offshore Investment products to Indian
consumers as per guidelines.
1. Two way authentication: Reliance offers its customers with a token (an
electronic gadget) that generates a password, which are a third level of security
in addition to the customer log in and a password provided. The password
generated by the token is valid only for a period of 20 seconds. If the web page
expires, for the fresh login, a new password generated by the token has to be
keyed in by the customer.
2. Lowest brokerage: Reliance offers the lowest brokerage of 1 paisa which
is very less with respect to the other DPs in the market.
3. User friendly software: The portal offered is very easy to understand and
use.
4. Better research and news: Reliance offers news from the DOW JONES
and REUTERS.
Seeking to bring share trading closer to consumers just like ATMs, Reliance
Capital's stock brokerage arm Reliance Money launched Internet trading services
through web-enabled retail kiosk.
Page | 36
Reliance Money Provide the kiosks (similar to ATM’s) Facilities, to their customer
through which the customers can trade on available kiosks at the particular
Branch of Reliance Money. The company are going to open these kiosks in the
market as the ATM’s of the Banks
Page | 37
Validity Validity Turnover Turnover
12
Small 500 or Rs. 1 lac Rs. 2 Lac
months
2
Large 1000 or Rs. 1 cr Rs. 90 lac Rs. 10 Lac
months
6
Large 2500 or Rs. 2 Cr Rs. 2.7 Cr Rs. 30 Lac
months
12
Large 5000 or Rs. 7 Cr Rs. 6.3 Cr Rs. 70 lac
months
12
Large 100000 or Rs. 20 Cr Rs. 18 Cr Rs. 2 Cr
months
Table 2.1
Following are also the main features of this share trading account provided by
Reliance money:-
Page | 38
3. Flexibility to transact in Equity, Equity and commodity Derivatives, Offshore
investments, mutual funds, IPO’s, Life insurance and General Insurance either
through online or through channel partners.
4. With the help of this A/c investors can access to their banking, trading and
Demat accounts without the hassle of writing cheques. Reliance money had tied
up with UTI, HDFC and IDBI bank to link this share trading account for the
investors.
These were some of the features of ‘Reliance money’ share trading account.
A customer can do the share trading through trading kiosks installed by Reliance
Money, through net, through business associates of R-Money.
Page | 39
appreciation realized is shared by its unit holders in proportion to the number of
units owned by them.
The aim of growth funds is to provide capital appreciation over the medium to
long- term. Such schemes normally invest a major part of their corpus in equities.
Such funds have comparatively high risks. These schemes provide different
options to the investors like dividend option, capital appreciation, etc. and the
investors may choose an option depending on their preferences. The investors
must indicate the option in the application form. The mutual funds also allow the
Page | 40
investors to change the options at a later date. Growth schemes are good for
investors having a long-term outlook seeking appreciation over a period of time.
Some of the Equity/Growth schemes made available by Reliance Money are:
The aim of income funds is to provide regular and steady income to investors.
Such schemes generally invest in fixed income securities such as bonds,
corporate debentures, Government securities and money market instruments.
Such funds are less risky compared to equity schemes. These funds are not
affected because of fluctuations in equity markets. However, opportunities of
capital appreciation are also limited in such funds. The NAVs of such funds are
affected because of change in interest rates in the country. If the interest rates
fall, NAVs of such funds are likely to increase in the short run and vice versa.
However, long term investors may not bother about these fluctuations.
These are the funds/schemes which invest in the securities of only those sectors
or industries as specified in the offer documents. e.g. Pharmaceuticals, Software,
Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in
these funds are dependent on the performance of the respective
sectors/industries. While these funds may give higher returns, they are more
risky compared to diversified funds. Investors need to keep a watch on the
performance of those sectors/industries and must exit at an appropriate time.
They may also seek advice of an expert.
Some of the sector specific schemes made available by Reliance Money are:
Page | 42
2.7.3.1 Growth Fund
A Moderate fund with growth approach and investments predominantly in large-
cap stocks. The objective is to ensure liquidity and lower impact cost leading to
the construction of a relatively more stable portfolio. The portfolio management
process will also focus on using cash as an investment tool and derivatives for
protection of portfolio.
Page | 43
Reliance Money has launched portfolio management services (PMS), where
managers will create a basket of stocks for each client, based on individual
needs, for amounts as low as Rs5 lakh.
Such services are popular in India but almost all the offerings of large finance
companies target high networth individuals (HNIs) with the ability to invest Rs1
crore and above.
The company offer a large-cap investment portfolio (where the stocks invested in
will be those of large-cap companies), blue chip portfolio (blue chip companies)
and an infrastructure portfolio (companies in the infrastructure sector)
inflation besides providing high liquidity. Most Indians share an emotional bond
with Gold nearly Bordering with God.
Page | 44
But in a highly disorganized Gold market, the purity aspect and thereby the value
for one’s Money during the purchase of Gold has always been a question mark.
For the customer, the lack of access to a branded, affordable, reliable Gold coin
has always been a matter of concern.
Reliance aims to bridge this gap by giving 99.99% pure, 24 carat, Swiss Gold
coins through its distribution network. Available in 0.5g, 1g, 5gm and 8gm
denominations, these 24 carat, 99.99% pure, internationally certified Gold coins
cater to a large segment of the society in both the retail and the corporate world.
Available in tamper proof packaging, the overall look and feel of these coins is far
superior & they possess a great finish. These Gold coins are Ideal for customers
or corporates to be used as a gifting idea, for retail/agent contests, as employee
rewards etc. Retail customers buy these coins just for the pleasure of owning it or
as an investment idea.
"Insurance is a contract between two parties whereby one party called insurer
undertakes in exchange for a fixed sum called premiums, to pay the other party
called insured a fixed amount of money on the happening of a certain event."
Page | 45
PROTECTION PLANS
RETIREMENT PLANS
5. Super Automatic Investment Plan 13. Super Golden Years Plan - Plus
Page | 46
CHILD PLANS
Under the Head of Solution for Groups, there are three bifurcations:
1. Group Superannuation
EMPLOYER LIABILTY 2. Group Gratuity
SOLUTION 3. Group Leave Encashment Plan
EMPLOYEE VOLUNTARY
1. Group Saving Linked insurance
BENEFITS
Reliance Money also offers life insurance policies of all the above mentioned
companies other than its own life insurance products.
Page | 47
2.7.6. GENERAL INSURANCE
It has also been categorized in the following manner:
Page | 48
4. Pravasi Bhartiya Bima Yojana Insurance
Policy
Page | 49
1. Directors and Official Liability Policy
2. Workmen’s Compensation Insurance Policy
LIABILITY 3. Professional Indemnity Insurance Policy
INSURANCE 4. Product Liability Insurance Policy
5. Public Liabilty Insurance Policy
6. Public Liability(Act) Insurance Policy
Page | 50
2.7.7 Consumer finance
Page | 51
4. Working capital loans
• HDFC Deposits
Page | 52
FINANCIAL PERFORMANCE
(Rs. Million)
Table 2.2
Page | 53
• The revenue mix is well balanced with broking contributing to 50% of the
total revenues and distribution of financial products & other services
(money transfer, currency changing & precious metal retailing) contribute
to the balance 50%
• It achieved a net profit of Rs. 368 million (US$ 8 million) for the year
ended March 31,2008, as against a profit of Rs. 1 million of the
corresponding previous period
• Reliance Money generated revenues of Rs.352 crore for the year ended
March 31, 2009, as against Rs.239 crore – an increase of 47 per cent
Scale of operations
As at Mar 31st, As at Mar 31,
PARTICULARS
2009 2008
No. of outlets 10350 8512
Table 2.3
Page | 54
.
2.10 Management
2.11 Employees
Reliance Money has at present, a code of conduct for all its officers. It has a
clearly defined prohibition on insider trading policy and regulations. The
management believes in the principles of propriety and utmost care is taken
while handling public money, making proper and adequate disclosures. All
personnel at Reliance Money are made aware of their rights, obligations and
Page | 55
duties as part of the Dealing Policy laid down in terms of SEBI guidelines. They
are taken through a well-designed HR program, conducted to impart work ethics,
the Code of Conduct, information security, Internet and e-mail usage and a host
of other issues.
One of the core objectives is to identify issues considered sensitive by global
corporate standards, and implement policies/guidelines in conformity with the
best practices as an ongoing process. Reliance Capital Asset Management Ltd.
gives top priority to compliance in true letter and spirit, fully understanding its
fiduciary responsibilities.
This ethical standpoint, derived from the vision of the founder, lies at the heart of
the CSR philosophy of the Reliance Group.
While they strongly believe that their primary obligation or duty as corporate
entities is to their shareholders – they are just as mindful of the fact that this
imperative does not exist in isolation; it is part of a much larger compact which
they have with their entire body of stakeholders: From employees, customers
and vendors to business partners, eco-system, local communities, and society at
large.
They evaluate and assess each critical business decision or choice from the
point of view of diverse stakeholder interest, driven by the need to minimize risk
and to pro-actively address long-term social, economic and environmental costs
and concerns. For them, being socially responsible is not an occasional act of
Page | 56
charity or that one-time token financial contribution to the local school, hospital or
environmental NGO. It is an ongoing year-round commitment, which is integrated
into the very core of their business objectives and strategy.
Because they believe that there is no contradiction between doing well and doing
right. Indeed, “doing right is a necessary condition for doing well”.
Page | 57
2.13 Top Management Profile
Page | 58
2.14 SWOT Analysis
Strengths
• 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 companies, in terms of net worth.
• Company issued 36.57 Lac policies during the year as compared to 14.60
Lac in the previous year thereby registering a growth of 150%.
• RGIC has been able to give highest ROI of 11.27% in last five years. The
net worth has doubled to Rs.4.94 billion from last year’s Rs.2.59 billion.
• Expert’s and research team to make strategies and products for company
as well as clients base to resolve the problem.
• Capture the 17% of the Private Sector Share & 7% share of the General
Insurance Industry
Page | 59
• Reserves and Surplus has increased five times to Rs.4.998 billion from
Rs.1.04 billion previous year.
Weaknesses
Page | 60
• Clientage is not so loyal as compared to the clientage of other competing
companies in the same industry
• The phenomenon of job hopping is very common in the company. So, the
problem of loyalty towards the company on behalf of the employees is a
major problmem
Opportunities
• The company has moved to 3rd position amongst Private Sector Insurers in
Financial Year 2008 & is ranked 7th amongst the Industry with 14 General
Insurance players.
• The mindset of people have also started changing. Now, they consider
trading as a good source of earning.
Page | 61
• The entire workforce consists of mostly youngsters, which means they can
be encouraged and motivated to do good work because they have a long
way to go and most of them are eager to climb the ladder.
Threats
• New Entrants
- Max India forms JVC with Bupa Finance to foray into Health Insurance
-Shriram Group is to enter General Insurance Market
Page | 62
Chapter 3 – Research Design
But the major focus was on making a customer profile for Reliance Money and
study the position of Reliance Money in the market as well as among its
competitors. In addition, investors were to be made aware about various
products and services offered by Reliance Money and checking the satisfaction
level of present customers
Page | 63
3.3 Objectives of the study
• To create awareness about the products offered by Reliance Money in the
Market
• To know about the investment preference or style of investors
• To know about the awareness of demat account
• To collect the real time information about preference level of customers
using Demat account and their inclination towards various other brokerage
firms e.g. Reliance Money, ICICI, Religare, Angel , Unicon, Sharekhan etc.
• As an intern at Reliance Money, to know about response of investors
towards Reliance Money
Primary data
Primary data is collected through observation, or through direct communication
or doing experiments. Under this, Survey method has been used.
Page | 64
For this report primary data was collected by personal interview with investors
and potential investors in different areas of Chandigarh. The data was collected
over a period of 6 days from 21th July to 26th July 2008.
Secondary data:
Secondary data refers to existing primary data that was collected by someone
else or for a purpose other than the current one. It means already available
through books, journals, magazines ,newspaper, websites.
Data has been collected through various websites the list of which has been
given in the end of report
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3.4.3.2 Sampling method
Sampling method used in this research is simple random sampling which is
also known as probability sampling. Under this sampling design every item of
universe has an equal chance of inclusion in sample. It is say to a lottery method.
3.5 Limitation
Although full efforts have been made in the study but the following limitations
should be kept in the mind before making any conclusion:
• Sample size was small in comparison of entire population (150)
• The respondents may be biased or influenced by outside factors.
• The time constraint was one of the major problems.
• The respondents were limited and cannot be treated as the whole
population.
• The accuracy of indications given by the respondents may not be consider
adequate.
• The research has been conducted according to present market conditions
of recession, so the finding and inferences may not hold good for every
business cycle.
Page | 67
Chapter 4 - DATA ANALYSIS
Yes 128 85
No 22 15
Table 4.1
Interpretation
Page | 68
The above table deals with interest of respondents in investment of funds. Out of
150 people taken into consideration for knowing in their interest investment, 128
said that they are interested in investment avenues while 22 of them did not
show any kind of interest in investment of funds available with them.
Chart 4.1
Inference
It can be deduced from here that majority of people are interested in investing
their money in various available schemes in market. However, some people are
still there who do not want to invest funds available with them. So awareness
needs to be spread among those who are not willing to invest their money. By
telling them various benefits which can be availed by making investment this can
be achieved. They should be introduced with products that suits their investment
needs
Page | 69
4.2 Percentage of annual income kept for investment
Upto 5% 20 16
Upto 10% 45 35
Upto 15% 33 26
Upto 20% 21 16
Above 20% 9 7
Table 4.2
Interpretation
This table tells about the amount of income people keep aside for investment
purposes. Out of 128 people who were interested in investment, majority of
people, that is, 45 respondents keep 10% of their income for investment and
people who invest upto 15% are also in good number. But there are very few
people who invest more than 20% of their income.
Page | 70
Chart 4.2
Inference
Therefore, it can be said that more than 1/3rdof respondents invest upto 10% of
their income and almost 1/4th of respondents employ upto 15% of their income in
investments. On this basis, around 60% of people invest 5% to 15% of their
income and this can be the target market for the players in the industry.
Upper 22 17
Page | 71
Middle 94 74
Lower 12 12
Table 4.3
Interpretation
This table deals with the number of people belonging to different income
categories, i.e, upper, middle and lower. Out of 128 people who are interested in
investing activities, 94 of them belong to middle class. Majority of respondents
who are interested in investment belong to middle class.
Chart 4.3
Inference
So, we can say that around 75% of the respondents who are interested in
investment belong to middle class as they consider investments important for
stable income and another criteria for targeting the potential investors can be the
income categorization and products can be developed according to specific
income category
Page | 72
4.4 Trends of dealing in securities
Table showing number of persons dealing in securities
Yes 95 74
No 33 26
Table 4.4
Interpretation
Out of 128 people, who showed their interest in investment, 95 said that they are
dealing in securities while rest of them, that is, 33 respondents were not dealing
In any kind of securities.
Chart 4.4
Page | 73
Inference
Even though 128 respondents have shown interest in investment activities, not
all of them are dealing in securities either due to lesser funds available with them
for investment or due to lack of knowledge regarding financial markets. However,
74% of them are still engaged in selling and buying of securities,
Mutual fund 30 24
All of these 16 13
None of these 12 9
Table 4.5
Interpretation
Page | 74
When asked about investment preferences, most of the investors were interested
in shares & warrants anad mutual funds. 45% favoured shares & warrants and
24% favoured mutual funds.Some investors were also not interested in any of
these but were investing their funds in fied deposits of banks and post office
saving schemes.
Chart 4.5
Inference
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.
Page | 75
4.6. Awareness of demat account among investors
Yes 123 82
No 27 18
Table 4.6
Interpretation
This table was formed on the basis of respondents who were aware of demat
account and those who were not aware of demat account. Out of 150
respondents, 123 replied yes as their answer when they were asked that wheter
they were aware of demat account or not. But there were atill 27 respondents
who did not even know what a demat account is all about.
Page | 76
Chart 4.6
Inference
So, it can be said that around 82% of people know about demat account but
there are still some people who do not know about all this and therefore are not
able to exploit the earnings opportunities available in financial markets.
Therefore, people should be educated about trading in securities so that they can
reap benefits out of it
Page | 77
Table showing number of people holding different opinion about demat account
Purchase in primarymarket 12 9
Table 4.7
Interpretation
When asked about the opinion people have about demat account, for most of
them, demat account was a mean of fast money & income growth and for some
of them stable income. Few people also think that demat account for easy selling
of securities and purchase in primary market.
Page | 78
Chart 4.7
Inference
It is good to see that around 72% people know that trading through demat
account helps in earning money and income growth. This kind of thinking pattern
should be spread among people so that they can invest more and more. In
addition, it will also help in mobilizing funds for development of economy.
Yes 98 65
No 52 35
Table 4.8
Page | 79
Interpretation
This table shows that out of 150 people, 98 people had demat account and 52
people do not had demat account.Around 123 respondents are aware of demat
account but only 98 of them hold it.
Chart 4.8
Inference
This pie chart shows around 65% of respondents possess demat account and it
is a majority part. So we can say that most of the people are trading in stock
Page | 80
market. But there is need of advertisement so as to engage them stock trading
and for that demat account is to opened with them.
Reliance money 32 32
ICICI 36 36
Religare 12 12
Others 18 18
Table 4.9
Interpretation
Page | 81
Out of 98 investors who had demat account, 36 people had their demnat account
in ICICI and 34 investors had the same in Reliance Money. Some investors took
name of religare and there was a mixed response about other depository
participants like Karvy, Sharekhan, Indiabulls etc.
Chart 4.9
Inference
From this pie chart, we can see the main leaders in the market are ICICI and
Reliance Money. They have a stiff competition between them and together they
hold around 68% of market share. While the other competitors like religare,
sharekhan, Indiabulls, Karvy etc. are are still behind
Page | 82
4.10 Potential available for companies in the industry
Table showing preferred depository participant by those who know about demat
account but do not have one:
Reliance money 12 50
ICICI 8 35
Religare 2 4
Others 3 11
Table 4.10
Interpretation
When asked from the respondents, who do not had demat account but know
about it, about the preferred depository participant, out of 25 investors, 12 said
that they would like to open their demat account in Reliance Money and 8
preferred ICICI for the same purpose. Some investors/ potential investors also
took name of religare, sharekhan, indiabulls etc.
Page | 83
Chart 4.10
Inference
It shows that even though ICICI is the market leader but Reliance Money is
giving ICICI a good competition. More people want to open their demat account
in Reliance Money as compared to people who prefer ICICI for the same
purpose.
Daily 17 17
Weekly 27 28
Monthly 43 44
Yearly 11 11
Table 4.11
Interpretation
Out of the people who had demat account, 43 said that they usually trade once a
month and 28 said that they trade weekly. Investors were also there who trade
daily or yearly but those people were less in numbers. So almost 72% of
investors trade weekly or monthly.
Page | 85
Chart 4.11
Inference
Inspite 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
Yes 126 84
No 24 16
Table 4.12
Page | 86
Interpretation
When people were asked about awareness of Reliance Money as a brand, 126
knew about Reliance money and 24 did not know. Around 84% said yes to this
question while 16% said no. majority of people know about Reliance Money as a
good brand.
Figure 4.12
Inference
This pie-chart shows that reliance money has a reasonable amount of brand
awareness in terms of a premier Retail stock broking company. This brand image
Page | 87
should be further leveraged by the company to increase its market share over its
competitors.
Yes 62 41
No 88 59
Table 4.13
Interpretation
Out of 150 people, 62 people knew about reliance money facilities but a majority
of people, that is, 88 people did not know about facilities provided by Reliance
Money. Even though around 84% of people knew about Reliance Money as a
brand but only 41% of people knew about the facilities provided or services
offered by Reliance Money.
Page | 88
Chart 4.13
Inference
Although there is sufficiently high 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.
Page | 89
4.15 Availability of Reliance Money franchisee
Easy 32 35
Difficult 66 65
Table 4.14
Interpretation
When people were asked about the amount of efforts spent in locating Reliance
Money franchisee for trading purpose, 32 said that it is easy to find Reliance
money Franchisee while 66 of them could not find that so easily. Majority of them
found it difficult to reach a franchisee for trading puposes.
Page | 90
Chart 4.14
Inference
From the above pie chart we can see that 67% of people found it difficult to
locate Reliance Money franchisee for trading and only rest of the investors, that
is, only a small part of 33% can locate the same easily. The difficulty in locating
the franchisee may harm Reliance Money as people will go for those depository
participants whose services are widely available in market.
Page | 91
Table showing satisfaction level among investors trading through Reliance
Money demat account:
Good 4 13
Average 9 28
Bad 19 59
Table 4.15
Interpretation
Talking about the satisfaction levels of customers of Reliance Money, out of 44
investors who had demat account in Reliance Money, 19 of them said that they
are not at all happy with the services provided by Reliance Money. Only 4
customers had a good satisfaction level and rest of them had an average
experience of dealing with Reliance Money.
Page | 92
Figure 4.16
Inference
This pie-chart corroborate the fact that Strategic marketing, today, has still not
gone beyond meeting sales targets and generating profit volumes only. That is
why, around 59% of customers which comprises of more than half of the
customers having a very low level of satisfaction.
5.1 Findings
Page | 93
performance. It implies that the problem was within the franchisee and it’s
activities.
Page | 94
5.1.7 Target Market
From the research it can be found out the major investors belong to middle
income group who keep around 5% - 15% of their income for investment
purposes. So it is very clear from that the target market or potential investors are
coming from middle income group
5.2 Suggestions
Page | 95
The first and foremost resource needed for enhancing he sales activities is the
Human Power, that is, to recruit some business development executives to assist
the sales activities of particular franchisees. The recommendation should pass
through proper channel to the business associate.
So the advisors should try to change their mindsets. The advisors should target
for more and more young investors. Young investors as well as persons at the
height of their career would like to go for advisors due to lack of expertise and
time.
After sales services and follow up calls are important for getting new references.
So trained tele-callers should be appointed for this purpose whose sole work
should be to make feedback calls.
Page | 96
Regular customer meets should be arranged to know the satisfaction level of the
customers.
5.3 Conclusion
As students, many of us are completely ignorant of the work cultures of various
corporate organizations. SIP is an attempt to provide us a practical corporate
exposure where we work in certain corporate organizations as interns. Working
with Reliance Money is a nice opportunity by which I can explore my knowledge
Page | 97
A good brand is always welcomed. Everywhere, in general, people are more
conscious with the brand. So they go for the brand and are ready to spend some
extra bucks for the quality.
The Brand image of Reliance Money is good in market but according to customer
satisfaction reviews the company have to provide better services and proper
follow up
Reliance Demat Account is better than other Demat account . Reliance Money
have good return of investment too.It also provides a sense of security with the
use of special type of key
1. High risk
2. High uncertainty
3. Lack of knowledge
4. High rate of fluctuations
My Learnings
• To get initial success in this field is very difficult. Although the business
generation becomes easier with time as we serve more people who then
Page | 98
get added up in the loyal clientage. Thus time and service are two most
factors in his field.
• Also the corporate remains a very important segment which gets business
in bulk but retail cannot be ignored which makes your business ticking.
• Apart from the assigned roles and responsibilities, the center manager
facilitated me with a training which covers the product details of Reliance
money, and how they are cheaper than other broking agencies, about their
corporate culture, organizational structure, sales methodology, tele-calling,
application handling, grievances handling with respect to aggressive
customers , etc.
BIBLIOGRAPHY
Page | 99
Books Referred:
• C R Kothari, “Research Methodology”,1st edition, New Age International
Publishers, ISBN: 978-81-224-1522-3
Websites:
• www.reliancemoney.com
• www.karvy.com
• www.nseindia.com
• www.bseindia.com
• www.moneycontrol.com
• www.religare.in
• www.angelbroking.com
• www.nsdl.co.in
ANNEXURE
Page | 100
Financial Details
PROFIT AND LOSS ACCOUNT
INCOME :
EXPENDITURE :
Page | 101
Adjustment below net profit + 0.00 0.00
Table 2.9
BALANCE SHEET
Page | 102
Unsecured Loans + 16.51 5.76
Service Line & Security Deposits from
Customers 2.63 2.32
Total Debt 59.48 36.98
APPLICATION OF FUNDS :
Page | 103
Net Current Assets 29.52 35.84
QUESTIONNAIRE
Q.2: What percentage of your annual income you can keep for investment?
(a) Upto 5%
(b) Upto 10%
(c) Upto 15%
(d) Upto 20%
Page | 104
(e) Above 25%
Page | 105
Q.8: Do you have a DEMAT a/c?
a) Yes
b) No
Q.11: How frequently you are going to use your DEMAT a/c?
(a) Daily
(b) Weekly
(c) Monthly
(d) Yearly
Page | 107