Professional Documents
Culture Documents
Project Report
on study of
sales and marketing,study of Brokerage Structure in
reference of other Broking House
AT
RELIANCE MONEY
PUNE
submitted by
laxmikant singh
REG.NO =35
A REPORT SUBITED IN PARTIAL FULFILLMENT OF
THE REQUIREMENT OF THE MASTER IN e-BUSINESS
ADMINISTRATION(MeBA)COURSE
ACKNOWLEDGEMENT
This research was made possible as per the requirement of the MBA course under
Indian Institute Of e-Business Management .Many individual took interest and were
supportive of my effort. In fact, many have given me their time generously and it is
not possible to mention all of them here and there act of goodness. I take the
opurtunity to place and record my deep sense of gratitude to all who have helped me
in completion of my study
I express my heartiest thanks to Mr. Manish shukla, Mob.No (9325101044) (Central
Head) of capital market of Reliance Money, who took keen interest towards my project
and provided me with deep insight on R.MONEY
I am deeply indebted to my mentor and guide Mr.Tushar Saboo, assistant senior agent
in reliance money.
I would be failing in my duties if I dont express my sincere gratitude to my parents for
their constant support and guidance. I also humbly thanks my friend and batch mates
.Ankit Agarwal for his generous participation in the data collection process.
PREFACE
DECLARATION
I here declare that this project entitle work with sales and marketing is a record
Of independent work carried out by me under the guidance of tushar saboo senior
Supervisor(marketing) as per the curriculums requirement in master in e-business
Administration of master in e-business management
Name
: Nitin Nishad
The objective of our study is:1) To know the various functions which are conducted for day-to-day operations in
RELIANCE MONEY.
2) To know the various norms adopted by RELIANCE MONEY.
3) To know the various products and services rendered to its customers.
4) To know whether the services provided by RELIANCE MONEY is able to
attain its customers satisfaction or not.
5) To find and try to bridge the gap between the expectations and experiences of the
customers in case of dissatisfaction.
6) To know how the branch functions in terms of sales and operations.
7) To market and to promote the products of RELIANCE MONEY.
8) To generate new business opportunities for RELIANCE MONEY by opening up
franchisees.
METHODOLOGY ADOPTED
Whether it is an army attack to the enemy air base or the way to the theme park we have
to proceed in a very cautious and a planned way. One mistake could give us heavy losses.
We know what to do, how to do in a perfect way and what should be the procedure so
that we are not lost in a way is dwelled by methodology adopted.
In dealing with any real life problem it is often found that data at hand is adequate, hence
it becomes necessary to collect data rather appropriate.
There are several ways of collecting data while doing the project or any survey. In this
project, I have collected from two sources that are:
1. Primary sources
2. Secondary sources
PRIMARY SOURCE:
I have gathered information about our project from the interaction with the customers of
our company i.e. Reliance Money. The sampling method used was basically convenience
sampling and most of the calls made were cold calls made on the generated database of
recipients of other companies.
SECONDARY DATA:
The secondary data, I have collected from the various websites of reliance money,
various journals, magazines etc.
The methodology adopted in the procedure followed in order to give the projects its
shape is:
EXECUTIVE SUMMARY
This report is structural as well as procedural study about the extent of flexibility and
transparency present inside the framework of financial industry.
Organization is constantly changing. These changes often result from events which alter
the establishment status quo in some way such as the introduction of new technology
process changes organization merges or restructuring.
Reliance money in its span of two years has undergone many innovations whether it is in
its field of technologies or whether it is customer satisfaction. In this period of our
training we have learnt all the operations done by reliance money i.e. opening of D-MAT
account, filling forms, verification of the form, rectification of the form, checking the
status of the clients, handling the queries of the customers, gaining knowledge about the
various products of reliance money like IPO, Commodities, Derivatives, Life insurance,
etc. and this report also presents a brief idea about the issue of credit cards.
During my project we also came to know about the customer service which the company
provides to its customers. As far as data collection is concerned we have both primary as
well as secondary data in this report. I have collected primary data by interactive sessions
with the working officials of the company and secondary data are collected which are
more qualitative in nature from the manuals, internet, corporate articles and other
preserved data by the company.
Reliance money is equally aware of the needs of its customers and helps them in giving
meaning and content. This company has steadily progressed over the years from strength
to strength. It provides online share trading facility to the customers. Reliance money is
also into life insurance which provides a very good opportunity to the customers by
giving them a life cover and securing the future of their families. As I dealt with both of
these two products of reliance money so I got a good exposure about the general
expectations of a customer and what he usually experienced while dealing into
investment products. To meet these expectations reliance money is into the concept of
franchisees where private franchisees are given to individuals so that the coverage area
of reliance money can be increased and word load on employees can be decreased in
order to increase Relationship Management.
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Vision
Empowering everyone live, their dreams we will leverage our strength in executing
complex global scale projects to make leading edge in broking services, affordable by all
individual investors in India. We will offer unparalleled value to create investor delight
and enhance business productivity. We will also generate value for our capabilities
beyond Indian borders while enabling millions of Indians knowledge workers to deliver
their services globally.
Mission
Our Mission is to keep the customer satisfaction by Creating unmatched value for
everyone through dependable, effective, transparent and profitable broking services as
focal point of all our operations, adopt the best international practices in customer
service, be the most innovative in product development, establish presence all over India,
ensure sustained value addition to all stake holders and to uphold Corporate Value &
Corporate Governance.
Guiding Principles
Customer Care and Satisfaction
Corporate Governance
Creativity and Innovation
Competitiveness
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MUTUAL
FUND
LIFE
INSURAN
CE
GEN.
INSURAN
CE
SALES
&
DISTRIBUTI
ON
EAST
WEST
LEGAL
RELIANCE
MONEY
CONSUME
R
FINANCE
HUMAN
RESOURCE
MARKETIN
G
NORTH 12 SOUTH
PRODUCT
TEAM
CO. CHAIRMAN
Mr.Anil Ambani
CEO
Mr.Sandeep Bandopadhyay
STARTED SINCE
CAPITAL
NO. OF
BRANCHES
NO. OF
FRANCHISEES
INDUSTRY TYPE
PRODUCTS
Equity
IPOs
Derivatives
Commodities Trading
Mutual Funds
Insurance
Offshore Investment
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Share Broking Firm
When an unlisted company makes either a fresh issue of securities ( Through primary
markets ) or an offer for sale of its existing securities or both for the first time to the
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public then that is known as an IPO. The first sale of stock by a private company to the
public. IPOs are often issued by smaller, younger companies seeking capital to expand,
but can also be done by large privately-owned companies looking to become publicly
traded. In an IPO, the issuer obtains the assistance of an underwriting firm, which helps it
determine what type of security to issue (common or preferred), best offering price and
time to bring it to market. Also referred to as a public offering.
Derivative:
In finance, a security whose price is dependent upon or derived from one or more
underlies assets. The derivative itself is merely a contract between two or more parties.
Its value is determined by fluctuations in the underlying asset. The most common
underlying assets include stocks, bonds, commodities, currencies, interest rates and
market indexes. Most derivatives are characterized by high leverage. Futures contracts,
forward contracts, options and swaps are the most common types of derivatives. Because
derivatives are just contracts, just about anything can be used as an underlying asset.
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Derivatives are generally used to hedge risk, but can also be used for speculative
purposes. To hedge this risk, the investor could purchase currency futures to lock in a
specified exchange rate for the future stock sale.
Derivatives are divided into basically two parts:
Futures
Options
A. Futures: A financial contract obligating the buyer to purchase an asset (or the seller
to sell an asset), such as a physical commodity or a financial instrument, at a
predetermined future date and price. Futures contracts detail the quality and quantity of
the underlying asset; they are standardized to facilitate trading on a futures exchange.
B. Options: A financial derivative which represents a contract sold by one party (option
writer) to another party (option holder). The contract offers the buyer the right, but not
the obligation, to buy (call) or sell (put) a security or other financial asset at an agreedupon price (the strike price) during a certain period of time or on a specific date (exercise
date).
Options are consist of two things:
i.
Call Option
ii.
Put Option
a) Call: It is the period of time between the opening and closing of some future markets
wherein the prices are established through an auction process. Call is an option contract
giving the owner the right (but not the obligation) to buy a specified amount of an
underlying security at a specified price within a specified time.
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b) Put: Put is an option contract giving the owner the right, but not the obligation, to sell
a specified amount of an underlying asset at a set price within a specified time. The buyer
of a put option estimates that the underlying asset will drop below the exercise price
before the expiration date.
Insurance:
There are good times and bad times during every stage of our lives, and being financially
prepared to face all kinds of situations makes the journey of life a lot easier and certainly
more. The Financial Product that helps in this is Insurance. Insurance is a
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Life Insurance
General Insurance
A. Life Insurance: This is the protection against the loss of income that would result if
the insured passed away. The named beneficiary receives the proceeds and is thereby
safeguarded from the financial impact of the death of the insured. The goal of life
insurance is to provide a measure of financial security for your family after you die.
Life insurance products offer comprehensive financial. Solutions which besides
offering financial security also provide opportunity for saving, investment & tax
planning.
2. Pensions
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Freedom to decide your own fund mix based on your risk profile under the Tailormade Plan
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A smart plan which adapts to your changing risk profile with increasing age
Option to lower the average cost of units through systematic transfer of your
funds
As a customer you will have the liberty to choose between the Ready-made and Tailormade Plan options. The premium contributions made by you, net of Premium Allocation
Charges and Sum Assured Related Charges are invested in fund/funds of your choice and
units are allocated depending on the price of units for the fund/funds. The Fund Value is
the total value of units that you hold in the fund/ funds. The Mortality Charges and Policy
Administration Charges are deducted through cancellation of units, whereas the Fund
Management Charge is priced in the Unit Value.
Minimum
Maximum
30 days
5 years
30 years
20
Term
Min
Sum
Assured
Max
Sum
Assured
No Limit
Key Features
Option to package with Accidental Death & Disability and Term Insurance riders
Policy has a minimum Guaranteed Fund Value which is equal to total of all premiums
paid (excluding any additional and extra premiums if any), to be payable on survival to
maturity or earlier death. The amount of top-up premiums paid is also guaranteed on
death provided there is no partial withdrawal. The amount of top-ups premium is
guaranteed on maturity provided the top-ups premium was paid at least 10 years before
the date of maturity and there is no partial withdrawal. The Sum Assured under the
Policy is fixed on the basis of the selected annual premium and Policy Term.
The Mortality Charges and Policy Administration Charges are deducted through
cancellation of units whereas the Fund Management Charge is priced in the Unit Value.
The premiums for riders, if selected, are payable over and above the premium for the
basic Policy.
The two main Employee Benefit Plans are:
a) Reliance Group Term Assurance Policy: Reliance Group Term Assurance Policy is
a one year Renewable Term Assurance contract. The benefit is payable on the
happening of the contingency during one year. At the end of the year, the contract
b) Reliance Group Gratuity Plan. This is a unit linked group Gratuity product with
three different fund options, namely Capital Secure, Growth and Balanced Funds. It
enables employers / trustees with more than 20 employees to outsource the management
of their employees Gratuity funds and the related administration to Reliance Life
Insurance Company Limited.
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B) General Insurance:
General Insurance is a form of risk management, primarily used to hedge against the risk of a
contingent loss of many articles and nominal things. This is a single policy that may cover
risks in one or more of the categories set forth below. For example, auto insurance would
typically cover both property risk (covering the risk of theft or damage to the car) and
liability risk (covering legal claims from causing an accident).G.I. may be done for follows:
Automobile Insurance
Aviation Insurance
Business insurance
Crop Insurance
Individual Mediclaim
Group Mediclaim
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Personal Accident
Personal Accident
The policy provides for payment of compensation in the event of accidents leading to
death or disablement of the insured person. The disablement may be of permanent
total or permanent partial or temporarily total in nature. This policy can be issued to
persons in the age group of 5 years to 70 years and can be extended to cover persons
beyond the age of 70 years and upto 80 years on payment of suitable additional
premium. The cover provided is worldwide.
Policy also provides for reimbursement of expenses incurred for carriage of dead
body and education grant for children (upto a maximum of two children) of the
primary insured person, subject to terms and limits.
This policy can be extended to cover actual medical expenses arising out of the
accident upto an amount not exceeding 40% of the compensation paid in settlement
of a valid claim under this Policy or 20% of the relevant Capital Sum Insured
whichever is less, on payment of 20% of extra premium.
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Fire
Public Liability
Product Liability
Professional Indemnity
Workmens compensation
Travel
Asia
Student
Corporate
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Miscellaneous
Industry Care
Commercial Care
Office Package
Fidelity Guarantee
Money Insurance
Householders Package
Equity
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Mutual Fund:
An investment vehicle which is comprised of a pool of funds collected from many
investors for the purpose of investing in securities such as stocks, bonds, money market
securities and similar assets. Mutual funds are operated by money mangers, who invest
the funds capital and attempt to produce capital gains and income for the funds
investors. A mutual funds portfolio is structured and maintained to match the investment
objectives stated in its prospectus.
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Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group (R-ADAG)
is one of the fastest growing mutual funds in the country. Reliance Mutual Fund offers
investors a well-rounded portfolio of products to meet varying investor requirements.
Reliance Mutual Fund has a presence in over 80 cities across India, an investor base of
over 2 million and manages assets over Rs. 26,314 crore as on June 30, 2006.
Reliance Mutual Fund constantly endeavors to launch innovative products and customer
service initiatives to increase value to investors. Reliance Mutual Fund schemes are
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Choice of Plans:
A. Growth Plan: The Growth Plan is designed for investors interested in capital
appreciation on their investment and not in regular income. Accordingly, the
scheme will not declare dividends under the Growth Plan. The income earned on
the Growth Plans corpus will remain invested in the Growth Plan.
The Growth Plan has two options :
B. Dividend Plan: The Dividend Plan has been designed for investors who require
regular income in the form of dividends. Under the Dividend Plan, the Scheme
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will Endeavour to make regular dividend payments to the unit holders. Dividend
will be distributed from the available distributable surplus after the deduction of
TDS and applicable surcharge, if any.
Dividend Payout Option: Under this option the Dividend declared under the
dividend plan will be paid to the unit holders within 30 days from the
declaration of the dividend.
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32
Commodities
33
34
Euronext.liffe
Offshore Investment
Offshore investment is the keeping of money in a jurisdiction other than ones country
of residence. Offshore jurisdictions are a commonly accepted solution to reducing
excessive tax burdens levied in most countries to both large and small scale investors
alike. Selected offshore domiciles are superficially viewed by some as havens used by to
conceal or protect illegally acquired money from law enforcement in the investors
country. Although this may be the case, legitimate investors also take advantage of higher
rates of return or lower rates of tax on that return offered by operating via such domiciles.
The advantage to this is that such operations are both legal and less costly than the
solutions offered in the investors country - or onshore. Locations favored by investors
for low rates of tax are known as offshore financial centers.
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equities, currency and commodities within the RBI-mandated limits. The central
bank currently permits a single
Indian resident to invest up to $50,000 (Rs. 22.5 lakh) overseas per year, which
has been raised from the earlier $25,000.
For instance, an investor with Reliance Money can buy Corus shares through an account
created for him or her by CMC. The shares will then be credited to the account. If the
investor wants to sell, he follows the same procedure, places an order and the shares in
the account are offloaded in the market.
Highlights:
Free for Life Card.
Limit:- Silver Credit Card up to Rs.30,000 &Gold Credit Card
(>)Rs.3,00,000.
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Pay bills of Reliance ADA group companies-Reliance Post Paid Bills, Reliance
Energy Electricity Bills, Insurance Premier, Recharge of Mobile Pre-paid Cards
and also for other utility companies on an on going basis by signing up once.
Customer can opt for free Photo Credit Card for added Security.
Reliance Credit Card holders can receive up to 5 add-on cards at no additional
charges, free email statements, free alerts, and will be able to transfer money from
one Visa Card to another using Citibank Online.
Reliance Money Provides with Zero Loss card Liability i.e. Customer just need to
give a call at the helpline no. and thus he gets a reference no. After that he does
not have the liability for increasing credit limit in his card.
Customer need to have another credit card (except that of Citi bank), before
having Credit Cards provided by Reliance Money.
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Reliance Securities
Reliance Commodities
INTRODUCTION
Share Market. Overview:
Share Market Overview would give an overall idea about the share market, its
participants, types; etc.Share market is the market for securities where organized issuance
and trading of shares takes place. It plays an important role in canalizing capital from the
investors to the business houses which consequently leads to the availability of funds for
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business expansion. Shares are certificates which represent ownership rights of the holder
in a company.
Basically, Share Market can be divided into two parts:1. Primary Market: It is the market where new issues of securities are offered to the
investors.
2. Secondary Market: An investor of a secondary market buys a security from another
participant of the same and not from any issuing corporation (as in case of Primary
Market).
Generally, stocks are of two types:a) Common Stock:
It gives an ownership right to the holders of the stock. The holders are entitled to receive
dividends whenever the company announces.
b) Preferred Stock:
These stocks also give ownership right to its holders. Its holders enjoy the privilege of
receiving dividends from the company in preference to any other common share holders.
Trading:
Share market is the market for securities where organized issuance and trading of shares
takes place. Shares are certificates which represent ownership rights of the holder in a
company. It plays an important role in channelising capital from the investors to the
business houses which consequently lead to the availability of funds for business
expansion.
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Shares in the Share Market are traded through:(a) Stock Exchange: These are organized market places where stocks, bonds are other
equivalents are traded between the buyers and sellers where exchange acts as counterparty to both the participants in case of any default.
(b) Over-the -Counter (OTC): These are not centralized exchanges and the trade takes
place through a network of dealers.
There are mainly two types of trading:1. Intra day trading: In this type of trading an investor buy and sell stocks during the
same day. Intra day Traders are of two types :i. Scalp Traders: Investors who perform many trades per day for scalping out small
profits out of the bid-ask spread, from each trade are known as scalp traders.
ii. Momentum Traders: Investors who pounce on those stocks which move
significantly in one direction and book desired profit are called momentum
traders. They do this within a day.
2. Delivery trading: In this type of trading an investor buys the share for holding
purposes. Delivery Traders are :-
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i. Technical Traders: They believe that buying/selling signals are present within
the graphs and charts of the stock.
ii. Fundamental Traders: They perform trade on the basis of study of fact-sheets
of the company like historical profit graph, balance sheet, anticipated earning
reports, stock splits, mergers and acquisitions, etc.
iii. Swing Traders: They are basically fundamental traders who take delivery of
trades for a span of short period generally more than one day.
Share Broking Company offers two types of share trading facilities:(a) Offline Share Trading: In this form of trading the customer has to place order to the
dealer of the stock broking firm either in person or over phone. Offline trading is the
main form of investing the money in securities. Offline trading offers many benefits as
well.
1. The one benefit that an investor appreciates the most is that they are not alone
when making investment decisions.
2.There are experienced and professional brokerage companies that handle their
investments for them.
3. Investors are not faced with the challenge of making these vital investment
decisions; especially, if they do not have the experience necessary to make the
appropriate investments.
4. Also, there is someone there to answer any questions that may cause concerns.
(b) Online Share Trading: The client could place his order on his own from any place
he wants, provided he has a computer with an Internet connection. Online Trading has
made it easy for private investors to gain straight access to a range of different security
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markets that were, at one point, only reserved by the use of investment professionals.
Online trading has dramatically changed over the last decade. It continues to be
redefined. Services have expanded to include integrated management of additional
financial accounts. It has subsequently expanded in conjunction with ground-breaking
improvements to the traditional trading interface, such as telephone interface systems.
There are several wonderful reasons to invest online rather than offline trading.
1. Instant online access: - You can gain instant access to your account, the value
of your portfolio updates immediately before your eyes.
2. Enter online trades at anytime during Market hours: - You can enter online
trades at anytime and from anywhere. This is very convenient if you live in a
different time zone than the country you are trading in. It especially fits for
investors with busy schedules.
3. With online trading you are in charge: - You are in control of your
investments. No sales pitches and no hassle. You decide where to invest your
money.
Thus, online stock trading is the easy way to buy and sell shares from the comfort of
your home.Finding a company that provides us with a secure trading account can be
difficult. There are many companies that offers us excellent services for trading, but we
need to find which will meet our needs and requirements .Instead of going with a
company based on their reputation we should see what they can offer us because our
needs as a trader will be radically different from someone traders who have different
levels of experience and who have different proclivities toward risk and security. Its not
that we always want to look towards the most economical rate of trading but rather work
with a reputed organization like RELIANCE MONEY.
DEPOSITORY:
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Depository system:
Depository
Share Registrar/Issuers
Investor
Clearing Corporation/Member
Role of Depository:-
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Constituents of
Enabling the surrender and withdrawal of securities through the process of demat
and remat to and from the depository system,
Carrying out settlement of "off market trades" (i.e. trades not done on the stock
exchanges)
Advising periodically to the Share Registrar / Issuer about the beneficial owners
of the securities.
DEPOSITORY PARTICIPANTS
CDSL/NSDL's demat services are extended through its agents called Depository
Participants (DP). The DP is the link between the investor and CDSL/NSDL. An
investor who opens a demat account with a DP can utilize the services offered by
CDSL/NSDL. While the DP processes the instructions of the investor, the account and
records thereof is maintained with CDSL/NSDL. A DP is thus a "service centre" for the
investor.
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Similar to brokers, who act on behalf of a client in the stock market, a Depository
Participant is also a representative in the depository system. Financial Institutions / Banks
/ Custodian / Stock Brokers etc. can become DPs provided they meet the necessary
requirements and guidelines prescribed by SEBI. DP serves as a link between the
investor and the Company through NSDL for dematerialization of shares and other
electronic transactions. DP provides various services with regard to your holdings such
as.
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Dematerialization:
Dematerialization is a process by which physical certificates (of shares / debentures /
other securities) are converted into electronic balances. A BO has to submit the request
for dematerialization by submitting the demat request form (DRF) duly completed along
with the concerned physical certificates, to his/her DP.
Processing Delivery & Receipt Instructions:
To settle trades done on a stock exchange (on-market trades) and trades, which are
directly settled between two BOs (off-market trades), BOs submit duly completed
delivery instructions in the prescribed form to DP. For receipt of securities into his/her
account, a BO can give one time "standing instruction" to DP. Once such a standing
instruction is given to the DP, there is no need to submit separate instructions for receipt
every time the investor buys securities.
Account Statement:
Generally a DP sends to the BO, a statement of his account, monthly, if there is any
transaction in the account or every quarter if the account is not operated during that
period.
Rematerialisation:
Rematerialisation is the process by which the electronic balances held in the demat
account can be converted back into physical certificates
Pledging:
If the BO decides to pledge any securities in his BO account, he can avail of the same by
submitting the pledge creation form duly completed, to his DP.
Nomination:
BO accounts also have a facility for nomination in favor of any person.
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Transmission of securities:
CDSL offers a facility for transmission of balances held in BO account/s (to other BO
Account/s) if so required due to death, lunacy, bankruptcy, insolvency or required due to
operation of any law.
Change in Address:
A BO who wishes to register his change in address submits his/her request in writing to
his/her DP. The changes entered by the DP in the CDSL system will be automatically
downloaded to all the companies in which the BO is holding securities. This facility
offered by CDSL saves money, time and effort for the BO.
Bank Account Details:
SEBI has made it mandatory for companies to print details of bank account of the BO on
dividend/interest warrants etc. to prevent possibilities of misuse of the warrants. All BOs
should submit a request in writing to the DP if they wish to record / change their bank
account details.
Every investor who wants to hold shares in Demat form must open account with a DP of
his/her choice. The DP provides all the services relating to transmission of shares and for
this service DP levy some charges which is to be paid by the account holder, and charges
for annual maintenance which is to be paid by account holder, in turn the DP provide
clients with passbook and delivery instruction slips to operate from his Demat a/c .
Dematerialization or demat is a process to convert the securities held in physical form
into an electronic form or to directly allot securities in electronic record form. These
electronic records of securities are shown as electronic balances in the demat account
through a depository participant (DP). DP provides a link between the account holder
(beneficiary owner or BO) and the company on one hand and National Securities
Depository Limited (NSDL) or Central Depository Services Limited (CDSL) on the
other hand.
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49
50
FLAT
FEE
Rs.500
TIMEVALIDITY
12 Months
TURNOVER
VALIDITY
Rs.3,00,000
TRADING LIMIT
Delivery: up to 3
lacs
or
Intraday: up to 3
lacs
TIME VALIDITY
2 Months
TURNOVER VALIDITY
Rs.1,00,00,000
Rs.1350
6 Months
Rs.3,00,00,000
Rs.2500
12 Months
Rs.6,00,00,000
TRADING LIMIT
Delivery: 10 lacs
Intraday: 90 lacs
Delivery: 30 laces
Intraday: 2.7 Crore
Delivery: 60 lacs
Intraday: 5.4 Crore
TIME VALIDITY
1 year
TURNOVER VALIDITY
Rs.5,00,000
TRADING LIMIT
BOTH
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Reliance Money has its tie up with three banks i.e. HDFC, IDBI and UTI
Bank and customer need to have his Savings Bank Account with any of
these Banks for enjoying this three tier service.
4. Convenient :Customer can access the services of Reliance Money through:
The Internet-mail at www.reliancemoney.com
The Transaction Kiosk
The Phone (Call & Transact)-call on 3988 6000 or SMS Money to
6636.
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Security Token Key that has a unique, six digit no. This no. changes
every 32 seconds and works as a dynamic password for keeping the
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7. Free Tips: Customer gets free tips, current market information and reports on their:
Mobiles
E-Mail IDs
8. Value Added Services: Customers can get some value added services on
www.reliancemoney.com
Reliable Research, including views of external experts with an enviable
track record.
Live News Updates from Reuters and Dow Jones.
CEOs/Expert views on the Economy and Financial Market.
Tools that help customers to plan their investments, tax, retirement etc. in
the personal finance section.
Risk Analyzer for analysis of Risk Profile.
Asset Allocations to build an appropriate investment portfolio.
Documents:
For opening a D-Mat A/C with Reliance Money, following documents are needed:
Photocopy of PAN Card (both-front and back side)
An address proof: (any one of them)
Passport
Voter ID Card
Driving License
Bank Statement
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Rent Agreement
Operations
The various operations provided by Reliance money is as follows
1) Internet trading
2) Client Account Opening
3) Clearing And Settlement
4) Capital gain on securities transaction
5) LevIies on securities transaction
6) Trading policy for employees
INTERNET TRADING:
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Funds and securities are transferred online from client account to broker account
and vice versa hence avoid manual work of cheque and DP slip.
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Capital Gain
Capital gain/loss is the difference between sale proceeds and cost of acquisition
of asset.
On sale of securities investor has to pay either short term or long term capital gain
tax if he earns profit.
Long term capital loss can be set off against long term capital gain only
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Short term capital Gain. When securities are hold for less than one year and sold
Tax is paid @10% on the short term capital gain from sale of securities.
Short term capital loss can be sent off against short term capital gain
When securities are sold after holding for more than one year
If shares are sold through recognized SE and STT is payable then no tax is
payable on long term capital gain otherwise IT @ 20% has to be paid.
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Document checking
Verification
Rectification of errors
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Processing completed
Sent to the processing house located at Mumbai
Account opening at CBO(Central Back Office)
After the forms being sent to Mumbai the following process is adopted..
Application inward:
There are two persons who collect these forms and then forward these forms for their
entries.
Entry:
There are persons who maintain an excel sheet for the entries of the forms in the
format which includes the various details as- application number, branches ,region
,zone, client name ,cheque number etc which is then forwarded to all branches .
Scrutiny:
After doing entries in the excel sheet the forms are being sent for scrutiny. There is a
team of 10 -15 people who are responsible for scrutinization.
The scrutinization includes Whether the forms are properly filled or not.
Is there any signature missing.
Whether there is a cross signature or not in the corrections etc.
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Scanning:
In this process the first three pages of the summary sheet viz (Form no 1) are scanned
for presenting the pages in DMS.
DMS:
After the form is scanned then they are presented in DMS (document management
system) which is a software used to maintain the record of the client which includes
the address, phone number, name of client which is used for further processing..
PAN Validation:
In this step there are two persons who check the PAN card of clients from the Income
Tax site for its validation. This is the step where the form can again be rejected and sent
back to branches.
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Authorization:
In this process, there are 3 to 4 person who send request to CDSL for authorization in
which a report is generated in every 45 minutes from CDSL that the form is approved
and account is opened. And in this report CDSL gives the client code for every client.
Once the code is generated the details are sent for preparation of Client master report
which is issued to every client.
This client master contains all detail of client including his bank details, nominee
detail, BO Id, client ID etc.
Then the client master report is sent to the department where the security key are
mapped .This is a special feature of reliance Money DP account which provide security
to the client and the password are prepared for cases.
This key is given with the kit known as welcome kit to client which includes client
master, DRF (Demat request form), DIS (delivery instruction slips).
Once the kit is fully equipped then it is dispatched to the client through courier.
The password of the client is dispatched on the other day of dispatch of kit.
With the dispatch of kit the account opening process is completed.
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REMISSAR
Entry
BDE
RO
Scrutiny
BRANCH
Processing
house Mumbai
Scanning
If any rejection
found send back
to BRANCH
DMS
Checker
PAN validation
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Authorization
If any rejections
found send back
to DMS
If not then send it
for further
processing
COMPARITIVE STUDY
Currently the main Players in Retail Brokerage Business are ICICI Direct, Share khan,
5paisa.com, HDFC Securities, India Bulls, and Motilal Oswal. Here is the Brief study
and Comparative analysis of these companies with Reliance Money.
ICICI Direct:
Brokerage and fees :
Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings
Schemes all from one website. General Insurance is also available from
ICICI Lombard.
Trading is available in both BSE and NSE.
Disadvantages of ICICI Direct
Getting access to ICICI Direct.com website during market session can be
frustrating.
ICICI Direct brokerage is high and not negotiable.
Not all stocks are available under Margin Plus.
Sharekhan:
Sharekhan is online stock trading company of SSKI Group, provider of India-based
investment banking and corporate finance service. ShareKhan is one of the largest stock
broking houses in the country. Sharekhans equity related services include trade
execution on BSE, NSE, Derivatives, commodities, depository services, online trading
and investment advice. Trading is available in BSE and NSE. Along with Sharekhan.com
website, ShareKhan has around 250 offices around the country.
Allow investor to buy and sell stocks online along with the following features like:
Integrated Banking,
Real-time portfolio tracking with price alerts and Instant credit & transfer.
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Two dedicated numbers for placing your orders with your cellphone or
landline.
Automtic funds tranfer with phone banking (for Citibank and HDFC bank
customers)
IPO investments
India bulls:
Indiabulls is Indias leading Financial Services and Real Estate Company having
presence over 414 locations in more than 124 cities. Indiabulls Financial Services Ltd
is listed on the National Stock Exchange, Bombay Stock Exchange, Luxembourg
Stock Exchange and London Stock Exchange.
Document Required to open Equity Trading Account with Indiabulls:
One passport size photograph.
Proof of bank account
Copy of PAN card.
Identity proof - copy of passport or PAN card or voter ID or driving license or
ration card.
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Address proof - copy of driving license or passport or ration card or voter card or
telephone bill or electricity bill or bank statement.
Technical Analysis
67
5 paisa.com:
5paisa is Online Stock Trading Company of India Infoline Securities Private Ltd.,
Owner of popular business portal Indiainfoline.com. Besides high quality investment
advice from an experienced research team, the site offers real time stock quotes, market
news and multiple tools for technical analysis. Trading is available in BSE and NSE.
Trading Terminals Available
Motilal oswal:
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Motilal Oswal Securities Ltd. (MOSt) is one of the best broking houses in India. Founded
in 1987, MOSt has in 200 cities through 400 outlets. MOSt provide advice-based broking
(equities and derivatives), portfolio management services (PMS), e-Broking, depository
services, commodities trading, IPO and mutual fund investment advisory services.
MOSt E-Broking is complete online stock trading solution for Indian stock market.
Features:
Following are the features of MOSt E-Broking account:
Easy single screen trader with instant trade confirmation similar to
exchange based trading terminals.
Access to various online reports like margin report, Demat A/c details,
trades executed, turnover report, net position report with mark to market
profit/loss and realized profit.
Online transfer funds through HDFC Bank.
HDFC Securities:
HDFC Securities (HDFCsec) is Equity Trading Company of HDFC Bank. HDFC
Securities provide both online trading and trading on phone. The HDFC Securities
trading account has a unique 3-in-1 feature that integrates your HDFC Securities
trading account with your existing HDFC bank savings account and existing Demat
account. Funds / shares are seamlessly moved from the linked Demat/Bank account
to execute the transactions. HDFCsec provides Cash-n-Carry on both NSE and BSE,
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Day trading on both NSE and BSE, Trade on Futures & Options on the NSE and
Online IPO Investment.
Features:
Seamless Transactions - By integrating your accounts, we ensure minimal waste
of time during movement of your funds and shares.
Speed - Orders are placed electronically, so proceeds are available instantly.
No manipulation - To prevent any mismanagement, we will send you an email
confirmation, the minute your order is executed.
Safety and Security - HDFC Securities offer the highest level of security such as
128-bit encryption technology.
Dedicated and Separate contact numbers - for trading over the phone as well
as for customer care.
COMPARATIVE STUDY
ONLINE
BROKE
R
A/C
OPENIN
G
CHARGE
ANNUAL
MAINTENANC
E CHARGE
BROKERAG
E
BROKERAG
E
(DELIVERY)
(INTRADAY)
70
MARGIN
MARGIN
(DELIVERY)
(INTRADAY)
Reliance
Money
750
200
0.01%
0.01%
DEPOSITED
AMOUNT
5 TIMES
ICICI
Direct
750
250
0.75 %
0.05 %
DEPOSITED
AMOUNT
8 TIMES
Share
Khan
750
300
0.40 %
0.05 %
4 TIMES
8 TIMES
India
Bulls
900
NONE
0.40 %
0.05 %
4 TIMES
8 TIMES
5 paisa.
com
550
NONE
0.25 %
0.05 %
2-4 TIMES
6-8 TIMES
Motilal
Oswal
450
250
0.35 %
0.05 %
2-4 TIMES
10 TIMES
HDFC
799
300
0.45 %
0.10 %
DEPOSITED
AMOUNT
DEPOSITED
AMOUNT
FRANCHISE MODEL
Reliance money gives equal opportunities to self employed people by letting them earn
through the fantastic DSA model of it. This model provides hefty commission on all the
products of reliance money and enhances the sales. For a certain number of franchisees
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there is a manager who is the person responsible to excel the satisfaction of the franchise
holder. A DSA can deal into all the products of reliance capital, i.e.: DEMAT Account.
Life Insurance.
General Insurance.
Mutual Funds.
Credit Cards.
Portfolio Management Services etc.
Else of these products there are many other promotional products which come in
different variables of time giving good earning opportunities to the DSAs.
PROMOTION
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As into customer survey I was also asked to go for promotion of reliance money on my
own. The best way I found out to promote the product was a canopy. Working on this
way, after 15 days of hard struggle I finally managed to get the permission of canopy in
Kirloskar Pneumatics. The customer exposure I got over there was terrific and I
generated some good leads for the company and this was one of my achievement of the
project conducted.
SWOT ANALYSIS
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Meaning:
A SWOT analysis is a method for describing the business in terms of those factors that
have the most impact. Essentially the co. nominate the Strengths and Weaknesses of the
business (its internal resources and capabilities), then it identify the Opportunities and
Threats it faces (factors external to the organization). Strengths and weaknesses are
often internal to your organization. Opportunities and threats often relate to external
factors. For this reason the SWOT Analysis is sometimes called Internal-External
Analysis and the SWOT Matrix is sometimes called an IE Matrix Analysis Tool.
Reliance Money is able to respond very quickly as we have no red tape, no need
for higher management approval, etc.
Reliance Money is able to give really good customer care, as the current small
amount of work means we have plenty of time to devote to customers
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Weaknesses:
New entrant in the market which is dominated by big brand names like ICICI,
India Bulls etc.
Company has a small staff with a shallow skills base in many areas
Opportunities:
The share trading sector is expanding, with many future opportunities for success
Threats:
Developments in technology will change the share market beyond the ability to
adapt.
A small change in focus of a large competitor is a threat for the market position.
QUESTIONNAIRE
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b). Friends.
c). Relatives.
d). Our executives.
Q. 7). Do you trade?
a). Yes.
b). No.
Q. 8). If no, then would you like to trade if provided with complete market knowledge?
a). Yes.
b). No.
Q. 9). Who is your current service provider?(for the people who alredy trade).
a). ICICI Direct.
b). India Bulls.
c). Karvy.
d). Religare.
e). Reliance Money.
f). Share Khan.
g). Motilal Oswal.
h). Anand Rathi.
i). others.
Q.10). how do you generally trade?
a). Online.
b). Offline.
Q. 10). Are you satisfied with your current service provider? If not, then do specify your
reason of dissatisfaction?(non reliance customers)
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a). Yes.
b). No.
_________________________________________________________________
_________________________________________________________________
__.
Q. 11). What amongst the following do you feel is the most important element to open up
a demat/trading account?
a). Good market predictions.
b). lower brokerage charges.
c). Fast responding services.
d). User friendly web portal.
e). Good relationship managers.
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8%
10%
18 30.
30 40.
40 50.
21%
61%
50 and above.
QUALITATIVE ANALYSIS:
According to the survey, most of the samples which enquired about the investment
products were in the age range of 18 30. The reason behind can be assumed that people
of this age range have less responsibilities to bear and thus have maximum risk bearing
capacity and therefore are more keen towards investments as they have more disposable
income as compared to older age groups.
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6%
6%
7%
a). Service.
b). Self- employed.
c). Profession.
24%
57%
d). Student.
e). Retired
QUALITATIVE ANALYSIS:
As seen by the survey most of the people interested into investments were the people
who were into service. This is because these are the people who are able to find more
time and disposable income as compare to another sample groups. Though self-employed
people are also keen towards investments but they also need liquid cash in order to keep
their money running into the business. Professionals are assumed to get no time because
of their hectic schedules and students are anyhow not so interested towards investments
at such an initial stage. Students do invest into stock markets as their hobby.
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11%
37%
24%
28%
QUALYTATIVE ANALYSIS:
People earning in the range of 1 lakh are not able to invest much because they are not
able to invest much. Therefore the range of 3 lakhs and above is the appropriate range
which should be targeted for the sales of investment products.
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_______________________________________________________________________
_______________________________________________________________________
__.
QUALITATIVE ANALYSIS:
Though most of the people as shareholders feel Reliance is a company which is ideal to
invest your money in but very few actually have faith in Reliance when these
shareholders come into the shoes of buyers. They feel that Reliance at most of the times
is not able to keep upto its promises as they feel that Reliance keeps all of its focus on
sales and hardly gives any importance to the service side. People have a perception that
Reliance is a name which is associated with hidden charges and they actually dont
believe on the tariffs of Reliance very easily. Most of the complaints were towards the
service segment of Reliance as a company.
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b). No.
9%
a). Yes.
b). No.
91%
QUALITATIVE ANALYSIS:
Almost all of the people I met during the project were familiar with the name of Reliance
Money which is a good sign for the marketing department as this figure shows that this
product is marketed well into the market. The remaining unknown people are those
which actually do not participate into investment activities and are thus unaware of this
market segment.
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b). Friends.
c). Relatives.
d). Our executives.
22%
a). Advertisement.
b). Friends.
11%
55%
c). Relatives.
d). Our executives.
12%
QUALITATIVE ANALYSIS:
Most of the people came to know about Reliance Money through the sales executives
which is again a good sign which shows that Reliance has an efficient sales staff which is
working with its full efficiency and dedication. And again 23% of people have come to
know about the company by their friends or relatives which shows that the efficiency of
the sales staff has turned the existing customers into the brand ambassadors of the
company to attract the potential customers.
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a). Yes.
b). No.
22%
a). Yes.
b). No.
78%
QUALITATIVE ANALYSIS:
Almost 80% of the people surveyed are trading or investing their money into the market
which shows that the market potential is very high and future growth perspectives of the
company are very good.
Q. 8). If no, then would you like to trade if provided with complete market knowledge?
85
a). Yes.
b). No.
30%
a). Yes.
b). No.
70%
QUALITATIVE ANALYSIS:
This can be seen very easily from the response that most of the people do not show their
interest in the investment activities because they are unaware of the market trends and
thus they are afraid of burning their hands. These people if provided with complete
market knowledge and proper purchase assistance can turn into the potential customers
of the company and these customers as fully satisfied ones will remain much loyal to the
company than the other ones.
Q. 9). Who is your current service provider?(for the people who already trade).
a). ICICI Direct.
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6%
4% 2%
a). ICICI Direct.
b). India Bulls.
35%
12%
c). Karvy.
d). Religare.
e). Reliance Money.
f). Share Khan.
g). Motilal Oswal.
h). Anand Rathi.
28%
5%
6%
2%
i). others.
QUALITATIVE ANALYSIS:
Its just one and a half year of reliance money into the market and it has become the
second largest player in the industry. This shows that reliance money is moving on the
right path but it needs to maintain the quality of services and assistance offered to the
customers and keep moving ahead consistently. ICICI though as a largest player has a
good quantity of customers but it lacks good quality traders as it is the most expensive
brokerage house in India but it manages to make customers because of no account
opening charges. As discussed earlier, reliance money has also eliminated the doubt of
hidden charges by taking prepaid brokerage from the customer. This concept relaxes the
customers and they feel free to trade upto the amount they have already paid.
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25%
a). Yes.
b). No.
75%
QUALITATIVE ANALYSIS:
Because of the tremendous growth of technology the way of trading and investing has
also changed a lot. People now prefer to trade online as they feel it is more transparent
and reliable rather than trading offline as there are some chances of human error while
trading online.
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Q. 10). Are you satisfied with your current service provider? If not, then do specify your
reason of dissatisfaction?(non reliance customers)
a). Yes.
b). No.
_________________________________________________________________
_________________________________________________________________
__.
32%
a). Yes.
b). No.
68%
QUALITATIVE ANALYSIS:
Though many people think that they are completely satisfied still the number of
unsatisfied users id substantial. Customers complain that either the brokerage house is
too expensive but most of the users were ready to pay more on the sake good purchase
assistance. People want the assistance to be customized according to their risk bearing
capacity and this is the area where reliance lacks behind as all its assistance is in general
whereas customers want it to be according to their needs. If reliance money puts in more
effort to its relationship management than it will soon become the market leader and will
gain loyal customers.
89
Q. 11). What amongst the following do you feel is the most important element to open up
a demat/trading account?
a). Good market predictions.
b). lower brokerage charges.
c). Fast responding services.
d). User friendly web portal.
e). Good relationship managers.
22%
26%
14%
20%
QUALITATIVE ANALYSIS:
After the survey its pretty clear now that people are actually ready to pay more on the
sake of excellent market predictions, good investment assistance and relationship
management. Reliance money which is a bit weak in all the three areas can make up new
customers by offering lowest brokerage charges and other monetary benefits but to
sustain in the industry well it needs to create a customized system which takes care of
each and every individual. This will not only increase the loyalty of the customers
towards the company but their good word of mouth will also bring in new customers
without any marketing cost.
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7) Though the service quality is good but it should become better consistently as
good service and better relationships are the key success factors of current market
situations.
8) The process of documentation is a hassle for customers as it is not at all user
friendly. Company should take care of user friendliness of the system.
Some of these changes in the system can actually create miracle for the company. These
changes though look small but create a lot of value to the customers and make the
company more approachable.
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LIMITATIONS
While conducting the survey there were various limitations because of which the results
cannot be declared correct by 100%. Some of these limitations are as follows:1) People are reluctant towards the survey and take it as a waste of time.
2) Taking appointments was very tough as people were not ready to give their time
for a survey.
3) Cold callings were not entertained everywhere and thus we were not able to meet
all the classification of customers.
4) Because of the temporary fluctuations in the market it was a tough time talking to
the people regarding investments.
5) People were reluctant towards the products of reliance because of a general
perception that reliance always comes with low price but always has hidden
charges.
6) Language was a hurdle while talking to many of the local people.
Though these limitations were there but because of the support of the people I have
surveyed and the experience I have gained while preparing for the survey presentations
of my college, I was able to complete the survey and prepare my project report much
before the deadline.
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CONCLUSION
The expectations of the customers are regularly increasing because of the increasing
competition and emergence of global market. In such conditions it becomes very
necessary for a company to fulfill all the expectations of the customers and give them a
delightful experience. Though reliance money is working very hard in order to do so but
there is a gap between the expectations and the experiences of the customers which is
widening regularly. This gap has emerged because of the sales oriented focus of reliance
money. In order to increase the sales figures, the company has somewhere ignored the
service delivery and left the customer on his own. In order to fill this gap, company needs
to customize its services as it is dealing into financial instruments. These financial
instruments are risky and it is very essential to make the customer feel that you are taking
care of his money. This can be done only if all the services are customized and the system
is made transparent for the customer as well as for the employees.
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