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WITH VARIOUS BROKERAGE FIRMS BY Rahul Mahajan (08bs0004066) Religare Securities Limited Summer Internship Pro ject (Batch of 2010)
PROJECT TITLE A COMPARATIVE STUDY OF BROKERAGE PLANS OF RELIGARE SECURITIES LTD. WITH VARIOUS BROKERAGE FIRMS COMPANY GUIDE Mr. Abhay Sawhney A.S.M. Delhi, Religare FACULTY GUIDE Prof. Rajneesh Mehra ICFAI Business School Chandigarh SUBMITTED BY RAHUL MAHAJAN (08BS0004066)
Certificate This is to certify that the project report entitled “A COMPARATIVE STUDY WITH VARIOUS OF BROKERAGE PLANS OF RELIGARE SECURITIES LTD. BROKERAGE FIRMS” at Religare Securities Limited is a bonafide record of work done by Rahul Mahajan, and submitted in par tial fulfillment of the requirements of MBA program of ICFAI Business School, Ch andigarh. Prof. Rajneesh Mehra Faculty Guide IBS Chandigarh
Noida Branch from February 23.C. C handigarh has done a project entitled “A COMPARATIVE STUDY WITH VARIOUS OF BROKERAGE PLANS OF RELIGARE SECURITIES LTD.TO WHOMSOEVER IT MAY CONCERN This is to certify that Mr. doing MBA at ICFAI Business School.R. Mr. From Religare Securities LTD. 2009. Rahul Mahajan. Abhay Sawhney Area Sales Manager Delhi (N. 2009 to May 23.) Declaration . BROKERAGE FIRMS” at Religare Securities Limited.
Abhay Sawhney. WITH VARIOUS BROKERAGE FIRMS” has been written and prepared by me during the academic year 2008-2009. ICFAI Business School and Mr. Place: Noida Rahul Mahajan 08b s0004066 . Religare Securities Ltd. ASM.I hereby declare that this report on “COMPARATIVE STUDY OF BROKERAGE PLANS OF RELIGARE SECURITIES LTD. This project was done under the able guidance and supervision of Prof. Rajneesh Mehra. Facul ty. I also declare that this p roject is the result of my own effort and has not been submitted to any other in stitution for the award of any Degree or Diploma. Noida in partial fulfillment of the requirement for the Master of Business Admin istration Degree course of the ICFAI Business School..
RAJNEESH MEHRA. the same happened with me during t his project.ABHAY SAWHNEY (ASM. special ment ion of MR SANDEEP CHATTURVEDI. Religare Securities Ltd. My sincere gratitude to MR. Last but not the least. faculty guide. I also thank PROF. whose constant support and blessings helped me throughout this project. for providing me with an op portunity to work with Religare Securities limited. ESHA A HUJA (TL.) and MR. I am grateful to MS. Noida. my heartfelt love for my parents.SANDEEP BHATI (SM. Religare Securities Ltd.). Chandigarh who has sincerely supported me with the va luable insights into the completion of this project.Acknowledgements Sometimes words fall short to show gratitude.) and all of the members of Noida branc h. who have helped me in the successful completion of this project. The immense help and support received from Religare Securities limi ted overwhelmed me during the project. IBS. Table Of Contents . Religare Securities Ltd.
Certificate II.3 Equity trading 4.2 2.1 1.4 Types of accounts 4.5 3. About Religare Pan India expansion Financial services provided by Rel igare Corporate Structure Area of operations Products and Services Religare Secu rities Ltd.Acknowledgeme nt V. Abstract Chapter 1: Introduction 1. 2.1 3.3 3.2 3.3 Chapter 3: 3.1 Objectives of the project Increasing internet trading Introduction to brokerage industry Brokerage industries insight Stock market Stock trading Religare Enterp rises Ltd.2 Chapter 2: 2.6 Chapter 4: 4.5 Client coverage 4.6 Online trading .I.2 Products offered 4.4 3.Declaration IV. To whomsoever it may concern III.1 Company overview 4.
2 Indiabulls 5.4. Increasing Internet trading 2.5 Cha pter 7: Chapter 8: Chapter 9: Chapter 10: Research Methodology Descriptive resea rch design Sampling Design Sample Size and Area Details of the survey conducted Data Collection Method Analysis and Interpretation Recommendations Annexure Refe rences LIST OF IILUSTRATIONS 1.3 Sharekhan Chapter 6: 6.2 6.1 ICICI Direct 5. Percentage of sub brokers present in each regi on Graph 1 Graph 2 .3 6.4 6.8 SWOT analysis Chapter 5: The Competitors 5.7 Incomes 4.1 6.
Geographical distribut ion 7. Pan India presence expanding 6. Percentage of branches in each region Graph 3 4. The project in religar e is to figure out the potential brokerage plans. Increased income from prior ity service client Table 1 Graph 4 Chart 1 Fig 1 Table 2 Graph 5 Graph 6 Graph 7 Graph 8 Graph 9 Graph 10 Abstract This project has been a great learning experience for me and at the same time it gave me enough scope to implement my analytical ability. which can undertake the variou s products and services offered by the religare. Religare area of operations 9. Institutional structure of t he Indian stock market 5. Increased client coverage (Priority clien t group) 11. Corporate structure of Religare 8. Increased income from total brokerage 14.3. . Increased portfolio management client 13. Increased online trading client 12. Increas ed client coverage (Equity client) 10.
Kotak Mahindra. As the competition from big players of online trading like Share k han. . investors can now enter orders directly online. the project is a step towards the same.With the advent of the internet. With the help of this pr oject Religare Securities Ltd could tap the Customers potential in investment an d which would provide them various opportunities of increasing the customer base . So. In this era of comp etition it’s becoming difficult for the organizations to acquire and retain the cu stomers. or even trade with other investors via ECN's (electronic communication networks ). “Customer Relationship and Branch Operations” believes that “They would not remember what you did but they will always remember what you said”. Hence. most of the brokerage houses have started providing the facility of onlin e trading to the customers. Today even the banks with the view of expansion and large number of customers has started providing the online trading terminal to t he customers. for religare it is of utmost importance to have satisfied existi ng customers as well as to attract the other customers. ICICI Direct etc is rising religare intends to built up a l oyal customer base .
CHAPTER ONE INTRODUCTION Globalization has proved to be a boon for the Indian economy. After globalizatio n there has been a tremendous growth in the Indian economy. Every sector of the economy has shown an outstanding performance after globaliza tion.
The project was under taken as to study the Indian online trading. Earlier Tradi ng was confined in limited boundaries but now the scenario has been totally diff erent after the entrance of online trading. There is a cut throat competition be tween the broking houses. Now the brokers are more concerned about their custome rs to improve their performance. The sector is undergoing fundamental changes th at have diluted its traditional role of protecting small deposits against capita l and income risk and facilitating the conversion of Savings into investment. Also there have been a drastic increase in the volume of share traded on stock e xchange and with that the online trading has shown Bull Run. Increasing Internet trading volume Online trading is the service offered on the internet for purchase and sales of shares. In the real world you place orders on your stock broker either verbally or in a written form. In online trading you will access a stock broker’s website t hrough your internet enabled PC and place orders through the brokers internet ba sed trading engine. These orders are routed to the stock exchange without manual intervention and executed their own in the matter of a few seconds. From the pa st two years the volume of the internet trading has increased largely.
2001). In the year 2007 IPOs of large firms (Motilal Oswal. Religare. and Edelweiss) received huge response (Indian catalog.CHAPTER TWO Introduction to brokerage industry Post major reforms initiative in early 2000s brokerage industry in India is expe riencing rapid growth and diversity. At present apart of brokerage business indu stry is also offering wide range of financial services. These developments have resulted in huge spurt in business and also growing market share of the large si zed brokerage houses has led to surge in enterprise value. At the same time global and private equity firms have ta ken .
Access to public equity markets and growing international investor’s interest ha s enabled them to raise resources. despite this the stock broking industry was at its pace a nd retained its sustainable growth. Th e insights have been arrived at through . On the back of growing equity culture broking activity is sp reading in Tier II and Tier III cities in India.stake in brokerage firms. Although there are more than 9000 brokers reg istered with SEBI 80% of the turnover in NSE and BSE is accounted by about 100 b rokers. equity derivatives and commodities futures in domestic and Internatio nal stock exchange. if we take the database of over 394 broking firms. Deepening financial system and economic growth has provided growth and expansion opportunities to broking firms . One of the oldest trading industries that have been around even before the estab lishment of BSE is the Indian Broking Industry. A majority of members have memberships in more than one stock exchange and across equities. Industry Insight Majority of the broking firms entered the business post 1990. All the data for the st udy was collected through responses received directly from the broking firms. Post liberalization there have b een number of changes. To study the trend in the stock broking indu stry. In India there are about 45 equity brokerage houses th at are at present listed in the stock exchanges.
40% are located at Mumbai. i.an analysis on various parameters. 12% in Delhi. 66% firms intend to increase FII clients and 43% are interested in setting up JV in India and abroad In terms of IT penetration. products and growth areas. terminal. 7% in Kolkata. 7% at BSE and 45% at both. 65% between 19501995 and 32% post 199 5 On the basis of terminals. branches. 84% firms have expressed interest in expanding their instituti onal clients. 29% in West. 11% in North and 4% in East In terms of various areas of growth. Some key characteristics of the sample 394 firms are: On the basis of geographi cal concentration. around 34% firms trade at NSE. around 40%. suc h as region. 31% trade at NSE. 24 % are located in South and 5% in East In terms of sub-brokers. 14% at BSE and 52% trade at both exchanges. 62% firms have pr ovided their website and around 94% firms have email facility . In the derivative segment. sub brokers. 4% in Chennai and 29% are from other cities In the cash ma rket. 8% in Ahme dabad. 48% trade at NSE. West has 31%. Around 24% firms are located in the North. market. 13% in the South and 10% in the East 3% fir ms started broking operations before 1950. whereas in the debt market. pertinent to the equity broking industry. 26% at BSE and 43% at both exchanges Majority of branches are located in the North.e. the West region has the maximum representation of 52%. around 55% are lo cated in the South.
with 31% branches. . with as many as 40% of al l branches located there. In case of sub-brokers. Aro und 24% branches are located in the South and East constitutes for 5% of the tot al branches of the total sample. almost 55% of them are based in the South. with 30% and 11% sub-brokers respecti vely. followed by the Western region. West and North follow.(Graph 2) Branches & Sub-Brokers The maximum concentration of branches is in the North. whereas East has around 4% of total sub-brokers.
In Bull Run they gain confidence to invest but in correction phase they lose confidence easily. . Bulk of client base is made up of retail investors. Institutional and other high value high volume investors prefe r to trade with so called blue chip brokers. Retail investors are “easy come easy go” accompanied with inconsistent trading habits.(Graph 3) Where one firm looses out to other Lack of well established branches put smaller brokers at a disadvantage when compared to larger Brick and Mortar players who have presence in every corner of the country.
Edelweiss (Lehman Brothers). including the Over the Counter Exchange of India (OTCEI) for small and new companies and the National Stock Ex change (NSE) which was set up as a model exchange to provide nation-wide service s to investors. Providing it with minimum overheads is very challengi ng especially for newer firms who are yet to realize margin of scale. Motilal Oswal (New Vernon). Foreign ba nks for a slice of equity business pie In the recent period. global and domestic private equity firms have taken stake in brokerage firms such as Anand Rathi (C itigroup). Market consolidation and merger are expected to keep the broking industry viabl e in the long run. Demanding customers asks for 24/7/365 access to information a nd transaction capability. Mumbai" by paying a princely amount of Re1. A lot has changed since 1875 when 318 persons became members of what today is called "The Stock Exchange. 128 years of experience seems to be a proud milestone .High competition among Stock brokers has put significant pressure on the prices. BOMBAY STOCK EXCHANGE (BSE) Bombay stock exchange is the oldest stock exchange of India For the premier Stock Exchange that pioneered the stock broking activity in India. .Business Trends INDIAN STOCK MARKETS AND EXCHANGES There are 23 recognized stock exchanges in India. Stock Exchange . SMC (Millennium In dia). Geojit (BNP Paribas). Network Broking (Amas Bank of Hindujas) and In dia Infoline (Orient Global) etc.
The growth of equity markets in India has been phenomenal in the decade gone by. liquid and representative com panies. First compiled in 1986. All major index providers like NIKKEI. Right from early nineties th e stock market witnessed heightened activity in terms of various bull and bear r uns. The index is calculated on the “Free-float Market Capitalization” methodology. The base year of SENSEX is 1978-79 and the base value is 100. the country s capital markets have passed through both good and bad periods. One can i dentify the booms and busts of the Indian stock market through SENSEX. NA SDAQ and DOW JONES use the free float methodology. Mumbai (BSE) in 1986 came out with a stock index that subsequently became the barometer of the Indian stock market. The index is widely reported in both domestic and international markets through print as w ell as electronic media. The journey in the 20th century has not been an easy one. Till the deca de of eighties. SENSEX SENSE X is not only scientifically designed but also based on globally accepted constr uction and review methodology. The Stock Exchange. The " Free-float Market Capitalization" methodology of index construction is regarded as an industry best practice globally. NATIONAL STOCK EXCHANGE (NSE) . there was no scale to measure the ups and downs in the Indian st ock market. The SENSEX captured all these events in the most judicial manner. SENSEX is a basket of 30 constituent stocks representing a sample of large.Since then.
Today. For a mass of investors across the . 1956 The Ca pital Market (Equities) segment commenced operations in November 1994 and operat ions in Derivatives segment commenced in June 2000. with number of trades touching 2. savvy stockbrokers? Critics even went to the extent of w arning that NSE’s sophisticated systems would be a misfit in an Indian capital mar ket dominated by physical deliveries. NSE towers over all the other stock exchanges in the country. few believed it wo uld survive. arbitrary speculative trade. which recommende d promotion of a National Stock Exchange by financial institutions (FI’s) to provi de access to investors from all across the country on an equal footing. and lengthy t rade settlements. When India’s National Stock Exchange (NSE) was started in 1994. 2004) the National Stock Exchange has tilted the market system in favour of investors and away from a significant bias in favour of inte rmediaries.5 million a day and tu rnover touching turnover touching Rs 100 billion in value terms. NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax -paying company unlike other stock exchanges in the country. How could a stock exchange run by a team of untested professionals headed by a former development banker succeed against existing stock exchanges r un by third generation. Based on the recommendations. In a ten-year period (NSE complet ed a decade on June 30.The National Stock Exchange of India Limited has genesis in the report of the Hi gh Powered Study Group on Establishment of New Stock Exchanges. On its recognition as a stock exchange under the Securities Contracts (Regulation) Act.
Derivatives are the future market where investors have the option of dealing in the price list of futures for which there a separate in dex is present known as NIFTY FUTURE. 500 etc. (could be unde rstood by a formula). Holdings of investors = (shares lot * price of the lot) / 3. as it provides trading the shares as well as index in futures and options. The Stock Exchange. till dat e. Before Nifty came into existence trading of index concep t was not present it was introduced by Nifty and is present in it only.country. (NSE) came out with a stock index that subsequently became another barometer of the Indian stock market known as NIFTY. 200. Nifty been t he focal point of investors. CASH MARKET AND DERIVATIVES National stock exchange gives the investors different option where an investor c an deal the equities into different market situations like cash market and deriv atives. and futures and o ptions. In Derivatives there are two choices avail able for an investor FUTURES AND OPTIONS FUTURE – In future market shares are deal in lots these lots could be of different numbers like 100. Invest ors while taking over these lots and coming under the contract takes the positio n of the shares by paying the 1/3rd amount of the total holdings. . Cash market is simply the equity market where investors have to pay the security amount which is done in BSE also but in NSE investors has the choice of dealing in derivatives. the NSE is now the focal point for trading in stocks.
OPTIONS – Option is a contract where the investor has two options to deal with CAL L and PUT. 2 months and three months according to the invest or’s preference.595 cr was raised through 85 IPOs in 200 7.508 cr throug h 124 issues in 2006-07. These h oldings are taken for 1 month.504 cr raised through 77 IPOs in 2006-07. 60000/ in future market which the area of attraction of this particular market.654 cr through 451 issues in 2006-07. Out of this Rs 87.08 against Rs 28.02 9 cr were raised through 124 public and right issues against Rs 33.in just Rs. . 900 . the investor has to pay:(2*100*900) / 3 = 60000/ Wh ich shows the investor is taking the position of Rs. In the call option investors is benefited if market drives up in future and in put will be benefited if it slips down. 180000/. The beauty of this contract is that the remaining 2/3rd money of the holdings is paid by the broking house the investors dealing with.This formula explains that as investor is interested in taking 2 lots of relianc e of 100 shares of Rs. The concept of call and put is opposite to each other call is the con tract where the investors believe that the market is going to be BULLISH in near future and put option is taken when he thinks that the market is going to be BE ARISH in the future. Funds mobilized in primary market rose to Rs 1. Investor c oming into this contract should know that by the time of contract he is in like of 1 or 2 months investor should clear its position before the last Thursday of the expiry month.143 cr through 558 issues in 2007-08 against Rs 55. 74. Total of Rs 42.
2008 19 2 9487 4183 44073 1442 1319 15 2 155 50 35 40 . Cumulative Assets under management ros e to Rs 5.292 in March2007.05.53. Institutional Structure of the Indian Stock Market Market Intermediaries Stock exchanges (cash Market) Stock Exchanges (Derivative Market) Brokers (Cash Segment) Corporate Brokers (Cash Segment) Sub Brokers (Cas h Segment) Brokers (Derivatives) FII Custodians Depositories Merchant Bankers Ba nkers to an Issue Underwriters Mutual Funds Number of Intermediaries as on March 31.801 cr in 2007-08 with a 63% rise from Rs 93.152 in March 2008 from Rs 3.984 cr in 2006-07.Net resource mobilization by mutual funds grew to Rs 1.26.
(Table 1) Stock Trading Traditionally stock trading is done through stock brokers. This software’s require high spe ed internet connection. This makes ord er execution very fast. Information technology (St ock Market Software) helps stock brokers in solving these problems with Online S tock Trading. In this case these Online Stock Trading companies are stoc k broker for the investor. Investor can trade shares through a website without any manual interventi on from Stock Broker. As number of people trading in stock market increase enormously in last few years. busy phone lines. miss com munication etc start growing in stock broker offices. This software is provided by the stock broker. They are registered with one or more Stock Exchanges. Mostly Online Trading Websites in India trades in BSE and NSE. stock market news etc. These kind of trading terminals are used by high volume intraday equity traders. alerts. It provide almost each and every information which is re quired to a trader on a single screen including stock market charts. Advantages: Orders directly send to stock exchanges rather than stock broker. There are two di fferent type of trading environments available for online equity trading. some issues like location constrains. Installable software based Stock Trading Terminals These trading environment requires software to be installed on investors compute r. personally or through telephones. . live data. Online Stock Market Trading is an internet based stock trading fac ility.
You cannot trade if you are not on the computer where you have installed trading terminal software. Investment in IPOs. It requires high speed internet connec tion. historical data’s. Disadvantages of Online Stock Trading (Website based): Website performance .Below are few advantages and di Stock Market Trading:Advantages of Online Stock Trading (W Real time stock trading without calling or visiting broker s office. demat account balance and bank account balance at any time. Place offline orders for buying or selling sto cks. Mutual Fun ds and Bonds. Customer service through Email or Chat. graphs and recommen dations to do analysis of stocks.sometime the website is too slow or not enough user friend ly. Little long learning curve especially for people who don’t know much about com puter and internet. Set alert to inform you certain activity on the stock through email or sms. Provide online tools like market watch. . graphs etc.Disadvantages: Location constrains . These trading terminals are not easily available for low volume share trad ers. Check the trading history. Web (Internet) based trading application These kind of trading lation. They are like und the world through sadvantages of Online ebsite based): environment doesn t require any additional software instal other internet websites which investor can access from aro normal internet connection. Display rea l time market watch.
distribution of . incorporated in 1984 and promoted by RANBAXY gro up.CHAPTER THREE Religare Enterprises Ltd. Religare Enterprises ltd (REL). financing loans against shares. corporate and institutional c lients. The services offered by the group include share broking. Religare is a diversified finan cial services group of India offering a multitude of investment options. It is among the leading integrate d financial services group in the country today. is the holding company of 11 subsidiaries. Each of its subsidiaries is engaged in a wide spectrum of financial products and servic es targeted at retail. IPO financing. high-net worth individuals.
private equit y and venture capital. wealth management. wealth management to equity broking. It also currently operates from nine int ernational locations following its acquisition of London s brokerage & investmen t firm. The di verse bouquet of financial services which Religare offers can be broadly clubbed across three key verticals . plc. investment banking. Harrison & Co. advisory services. Institutional and Wealth spectrums. commodity broking. commodity broking. insurance broking. The se rvices extend from asset management.in) Religare has a pan India presence.Mutual funds. which finances loans against shares. T he major revenue drivers for the company are its retail equity broking arm Relig are Securities and Religare Finvest. 1837* locations across 498* cities and towns. diversify and introduce offerings benchmarked against global best practices .(www. (Now Religare Hichens. Hichens. Harrison Plc).Retail.religare. With a view to exp and. . private equity. lending services. Religare operates in the life insurance space under AEGON Religare Life Insur ance Company Limited and wealth management under the brand name Religare Macqu arie Private Wealth . Life Insurance. Religare has also ventured into the alternative investmen ts sphere through its holistic arts initiative and Film fund. merchant banking and trading in arts and articrafts.
. Religare has operations at 1. high net worth in dividuals and corporate and institutional clients including equity and commodity broking. Religare has grown rapidly from what was largely an equity trading company into a diversified financial services company operating through its 11 subsidiaries. investment banking and insur ance broking. 2008.(Graph 4) Religare (“company”) is an integrated financial services institution offering a wide range of financial products and services to retail investors. wealth advisory services. As on June 30.575 locations ac ross 465 cities and towns and a large management team leading group of over 9.50 0 employess. online trading.
5 million. for a sum of GBP 55. Dubai. Harrison & Co. Qatar.Recently acquired Hichens. (“Hichens”). Singapore. (Chart 1) . Acquisition to boost the institution al and investment banking operations of Religare and extend its geographical rea ch to London. one of the oldest broking fir m in London. Argentina. South Africa. Malaysia and Indonesia. Brazil.
. Diversified product portfolio with individually focused managemen t teams to create optimum balance and result.Diversified Integrated Financial Services Platform Recently growth and establish ed business testimony of Religare’s commitment towards becoming the investment gat eway of India.
CORPORATE STRUCTURE OF RELIGARE RELIGARE FINVEST LTD RELIGARE SECURITIE S LTD RELIGARE INSURANCE RELIGARE BROKING FINANCE LTD LTD RELIGARE COMMODITIE S LTD RELIGARE ENTERPRISE S LIMITED RELIGARE REALTY LTD RELIGARE WEALTH MANAGEMEN T SERVICES RELIGARE CAPITAL MARKET LTD Fig 1 RELIGARE VENTURE CAPITAL LTD Religare Areas of Operation .
(Table 2) Products & Services .
500 Pan India presence expanded to 1. investm ent in multiple business & human resource in new venture of RFL and RIBL .Promoter Groups Fortis Healthcare Limited Super Religare Laboratories Limited Religare Wellness Limited (Formerly Fortis Healthworld) Religare Technova Limited (formerly Fortis Financial Services Limited) Religare expansion as on Q1 FY09 Employee strength increased to over 9.575 l ocation in 465 cities across India Continued focus on expanding network.
17 mn a nd Profit after tax at Rs. EBIDTA at Rs. 2.Quarterly Total Revenue recorded at Rs. 36.887.68 mn CHAPTER FOUR .49 mn.184. 1.
10 insurance companies. Businesses under Religare Securities Ltd. 35 banks and 1 1 FIIs. Member of the NSE. include: Retail Equity Broking Priority Client Eq uity Services Online Investment Portal Institutional Equity Broking (To be shift ed to RCML) Portfolio Management Services Depository Services Empanelment with 8 1 institutions including 20 mutual funds. Major activities and offerings of the company include equity broking both offline and online. portfolio mana gement services and institutional brokerage. depository participant with NSDL and CDSL. (“RSL”) is the wholly owned subsidiary of REL and a securit ies firm in India.RELIGARE SECURITIES LTD Company Overview Religare Securities Ltd. and SEBI approved portfolio manager. BSE. depository participant services. Has strong .
Institutional Brokerage & Research.8% in June 2008 from 2. 7. Depository Participant with National Securities Depository Limited and Ce ntral Depository Services (I) Limited. Reli gare has been constantly innovating in terms of product and services and to offe r such incisive services to specific user segments it has also started the NRI. FII.7% in FY07 and online trading market share increased to 8. and SEBI approved Portfolio Manager. These groups take all the portfolio inv estment decisions depending upon a client’s risk / return parameter. Religare has a very credible Research and Analysis division. . RS L is a member of the National Stock Exchange of India. The company currently handles sizeable volumes traded on NSE and in the realm of online trading and investments it currently holds a reasonable s hare of the market.7% i n June 2008 from 7.institutional research team covers over 185 companies in 16 sectors Aggressive r amp up of equity trading client accounts with market share increasing to 3.000 million Religare Securities Limited (RSL) is a leading equity and securities firm in India.2% in October. Depository Participant Services. HNI and Corporate Servicing groups. Portfolio Management Services. Bombay Stock Exchange of India. Investment Banking and Corporate Finance. The major activities and offerings of the company today are Equity broking. 2007 Received in principal approval from SEBI to act as a sponsor of Asset Management joint venture with Aegon Received P1 Credit Rating from CRISIL for its short te rm debt issuance program for a sum of Rs.
but also gives their valuable inputs to investment dealers.which not only caters to the need of our Institutional clientele. Product offered by Religare Securities . Religare is also providing in-hous e Depository services to its clientele and is one of the leading depository serv ice providers in the country.
OFFERINGS OF EQUITY RELIGARE SECURITY INTERNATI AND ONAL DERIVAT PM ADVISORY IVE S S INVEST. BANKIN G .
There is difference between both offline and online modes of trading. Initially the clients used to go for offline modes of trading. Race Rall y While Rally deals with offline facilities. platforms and facilities provided. . The difference lies on account of its schemes. Race provides for complete online pac kage and facility. but no w with increasing use of internet online mode has become the preference.Equity and Trading Race and Rally are the two products offered by Religare Securities ltd which com e under equity and derivatives.
. This trading platform is a lso browser based and no software installation is needed. futures & opt ions calculator.Type of Account R-ACE (Basic) It s the basic online trading account provided by Religare. trading is available online th rough internet and offline though phone. This acco unt comes with a browser based online trading platform and no additional softwar e installation needed. Along with the fe atures from above 2 accounts. multiple watch list. s oftware which needs to install on your computer. Investor can trade a nd access their account information online and over the phone as well. derivative chains. This terminal directly connects the investor to stock market and having all industry standard Treading terminal features including technical charting (intra-day and EOD). As in basic and advance account. This account also provides Lifetime free DP account with no annual maintenance charges. R-ACE Pro (Professional) As the name indicates this account is for high volume traders. R-ACE Lite (Advanced) It s the advanced account option for the investor with Religare. In addition it also provides real-time streaming stock quotes and alerts. this account also comes with a Trading Terminal. advanced hot-key functions for faster trading. This trading ac count provides the entire feature of R-ACE (Basic) account.
Brokerage at Religare On the basis of volume and frequency of trading. Accou nt activation charges Rs.3% to 0. All the account comes with free annual maintenance charge.000 intraday & derivative trading and Rs.50%.000 of delivery based trad ing for zero brokerage. investor has to pay a fix amount in advance for Annual S ubscription (Rs 4000). R-ACE Pro 4.5%. Religare provide different opti ons for brokerages. Freedom Account ○ In this payment scheme. R-ACE Lite 3.Brokerage and Account opening fees: Religare offers three kinds of accounts as a bove. . Trump Plus has annual subscription fees of Rs 2... ○ Trump Account Trump account has two payment options 1. On the broader way they divided into three categories: ○ Classic Account Intraday brokerage varies from 0. 6. Account activation charges Rs. Below are detail about fees and activation charges for each account: 1. R-ACE Account activation charges Rs.299/-.999/-. All account com es with free DP account. Delivery brokerage varies from 0.500. 2. 40. 3.00. 5.499/-.30 % to 0. This one time payment enable account holder to trade for Rs.
15.015%. 2. . Advantages of Religare • Religare gives interest on unutilized cash when investor is waiting to make next trade or online investment.Brokerage on Delivery Trades of 0.25% and Brokerage on Intraday Trades & F&O Tra des of 0. • Religare Allow thei r investor to trade without having to worry about cash margin.15% and Brokerage on Intraday Trades & F&O Trades of 0.025%. Trump Super has annual subscription fees of Rs. • Lifetime free DP account. Broker age on Delivery Trades of 0. Investor can get exposure (on cash segment) as high as 20 times for intraday trades.000. • Varity of f ee structure to fulfill need of different type of investors. • They provide intraday reports and historical charting.
749 mn for Q1 FY 09 increased from 3.6 lacs.84% in last quarter Online client clients. recorded an increase of st quarter Total Equity brokerage of Rs.500 brokerage for the q . 32 mn Increased Client Coverage (Graphs-5 & 6) more than 11% in la Equity market share base of over 78.Equity Broking and Online Trading Equity client base of over 4.46% to 3. recorded an increase of 20% in last quarter Online uarter accounted for Rs.
Increased Online Trading and Portfolio Management Client (Graphs-7 & 6) Increased Income from Various Business Lines .
strong presence in WEST. INDUS Bank. . Provides transparency to clients Highly qualified research team Strong network throughout India. AXIS.(Graphs-8 & 9) SWOT ANALYSIS STRENGTHS Strong corporate relationship with its promoter RANBAXY Collaborations with high ly reputed international companies AEGON and MACQUERIE. ICICI. NORTH and SOUTH WEEKNESS No satisfactory Brand awareness and no Brand recall value In case of intraday th e order is automatically squared off at 3. CITIBANK.10 pm Problem in linking Religare dema t account with the five banks HDFC.
KOTAK etc.OPPURTUNITIES Even the strong players in the market holds 6% of market share. SHAREKHAN. The downfall in the stock market CHAPTER FIVE . so there is a go od potential for growth The growing interest of people in the stock market India n stock market story going strong THREATS Competition from major players like ICICI DIRECT. INDIA BULLS.
are: 1. India Bulls 3. Share Khan 4. Reliance money . India Infoline 5. Kotak 6.The Competetor The existing major players in the stock broking industry besides Religare Securi ties ltd. ICICIDirect 2.
Share Trading Account Share Trading Account by ICICIDirect is primarily for buying and selling stocks in NSE and BSE.com) is stock trading company of ICICI Bank. it also provides fa cility to invest in IPOs. This account allows Cash Trading. Along w ith stock trading and trading in derivatives in BSE and NSE. Mutual Funds and Bonds.ICICIDIRECT ICICIDirect (or ICICIDirect. . Trade In: BSE and NSE Type of Account ICICIDirect offers 3 different online trading platforms to its customers: 1. Trading is available in BSE an d NSE.
com websi te is the primary tool to invest in Mutual Funds. 2. 2. ICICI Direct offers various options while investing in Mutual Funds lik e Purchase Mutual Fund. Account opening fees : Rs 750/. It allows investor to use online and offline stock trading. Systema tic Investment plans. Systematic withdrawal plan and transferring existing Mutua l Funds in to electronic mode.Margin Trading. Bonds and stock trading. Online Mutua l funds investment allows investor to invest on-line in around 19 Mutual Fund co mpanies. Wise Investment accou nt also provide options to invest in Mutual Funds and Bonds online. service taxes and . It also provides with independent market expertise and support through a dedicated Relationship M anager from ICICI.com brokerages varies on volume of trade and inclusive of demat transaction charges. Active Trader Account Active Trader account gives more personalized investment options to the investor s. Buy Today Sell Tomorrow and C all and Trade on phone. ICICIDirect. Spot Trading.(One time non-refundable) Brokerage: ICICIDirect . Active Trader also provides commodity trading.com website is the primary trading platform for this trading account. IPOs. ICICIDirect. Redemption and switch between different schemes. Wise Investment Account Along with stock trading and IPO investing in BSE and NSE. Brokerage and fees 1. Margin PLUS Trading. This account also provides facility to invest in Government of India Bonds and ICICI Bank Tax Saving Bonds. They also provide installable application terminal bas ed application for high volume trader.
425% for squared off trades and 0.courier charges for contract notes. Disadvantages of ICICIDirect 1. 3. All accou nts are from ICICI and very well integrated.1% to 0. There is absolutely no manual inte rfere require. .4% to 0.2% to 0. 3-in-1 account integrates your banking. Not all stocks ar e available under Margin Plus. It ranges from 0. Getting access to ICICIDirect. 4. This feature makes ICICI the most i nteresting player in online trading facility.com website during market session can be frustr ating. Money from selling stock is available in ICI CI bank account as soon as the ICICIDirect receive it. broking and demat accounts.15% for margin trad es. G eneral Insurance is also available from ICICI Lombard. GOI Bonds. and Postal Savings Schemes all from one website. 3. This is truly online trading environment. 2. Mutual Funds. Unlike most of the o nline trading companies in India which require transferring money to the broker s pool or towards deposits. 0. 2. at ICICIDirect you can manage your own demat and ban k accounts through ICICIdirect.85% on delivery based tr ades. Trading is available in both BSE and NSE.com. ICICIDirect brokerage is high and not negotiable. Advantages of ICICIDirect 1. Investment online in I POs.
Luxembou rg Stock Exchange and London Stock Exchange.(One time non-refundable) as below: . Bombay Stock Exchange. Account opening fees : Rs 1200/. Tic by Tic Live Charts. Technical Analysis. Indiabulls Financial Servic es Ltd is listed on the National Stock Exchange. Type of Account Indiabulls Equity Trading Account Indiabulls Equity Trading Account is standard Online trading account from India bulls and along with online trading it also pr ovides priority telephone access that gives you direct access to your Relationsh ip Manager and full access to Indiabulls Equity Analysis . Fast Order Entry and execution. Extensive Reports for Real-time Accounting.INDIABULLS Indiabulls is India s leading Financial Services and Real Estate Company having presence over 414 locations in more than 124 cities. Application Trading Terminal (Need Installation) Power Indiabulls Power Indiabulls trading terminal is the most advanced new gene ration trading platform with great speed. Power Indiabulls is extremely reach in features including Live Streaming Quote s. L ive News and Alerts. Brokerage and fees : 1. This trading terminal is built in JAVA .
S.Software changes Advantages of Indiabulls Equity Trading Account Brokerage is less compare to other online trading companies. It s very fast in terms of speed and execution. ShareKhan is one of the large st stock broking houses in the country. provider of India-based investment banking and corporate finance service.Demat Account opening charge 7 50/.Equity Trading Account opening charge 200/.250/. S. SHAREKHAN Sharekhan is online stock trading company of SSKI Group. Provide trading ter minal power bulls . . a java based software. Kantilal Ishwarlal Securities Limit ed (SSKI) has been among India’s leading broking houses for more than a century.
Free trading thr ough Phone (Dial-n-Trade) I. buying/selling by mutual fun ds and much more. Tr ading is available in BSE and NSE. result announcements. ShareKhan h as around 510 offices (share shops) in 170 cities around the country.com website. a. Derivat ives. online trading and investment advice. Trade In: BSE and NSE Type of Account 1. commodities. Along with Sharekhan. details about more than 1. Two dedicated numbers for placing your orders with your cell phone or landline. depository services.ShareKhan Classic account Allow investor to buy and sell stocks online along with the following features l ike multiple watch lists. Share khan has one of the best state of art web portal providing fundamental and statistic al information across equity.Sharekhan s equity related services include trade execution on BSE.500 mutual fund sch emes and IPO data. Realtime portfolio tracking with price alerts and Instant credit & transfer. NSE. FII transactions. Integrated Banking. You can also access other market related details such as boar d meetings. mutual funds and IPOs. You can surf across 5. Onli ne trading account for investing in Equities and Derivatives b. . demat and digital contracts.500 c ompanies for in-depth information.
After hour s order placement facility between 8. II. . professional advice of our telebrokers V. Real-time streaming quotes with Instant order Execution & Confirmation c. a. f.get the trusted.5% for inter day shares and 0. Following are few popular features of SpeedTrade account.1% for in tra day or you could say Sharekhan charges 50 paise per Rs 100. g. Hot keys similar to a traditional broker term inal d. Automatic funds transfer with phone banking (for Citibank and HDFC bank cust omers) III. Sharekhan charges 0. Alerts and reminders e. ShareKhan SpeedTrade account This accounts for active traders who trade frequently during the day s trading s ession. Single scre en interface for cash and derivatives b. e.00 am and 9.c. Back-up facility to place trades on Direct Phone lines Brokerage: Some stock trading companies charge direct percentage while others charge a fixe d amount per Rs 100.Simple and Secure Interactive Voice Response based system for authent ication IV.30 am Integration of: Online tr ading + Bank + Demat account Instant cash transfer facility against purchase & s ale of shares IPO investments Instant order and trade confirmations by e-mail Si ngle screen interface for cash and derivatives 2. d.
etc. C. mail alerts.. (If you trade. C. you will loose majority of your money in broke rage). Classic account holders cannot trad e commodities. Cannot purchase mutual funds online. Unlike ICICI Direct. . Lots of hidden rules and charges. A. Disadvantages of ShareKhan A. D.\ E. They do not provide facility to b ook limit order trades during afterhours. HDFC Sec. so investor not really needs to open an account with a particular bank as it can establish link with most modern ban ks. They charge minimum brokerage of 10 paisa per stock would not let you trade s tocks below 20 rs. B. They provides good quality of services like daily SMS alerts.Advantages of Sharekhan: Online trading is very user friendly and one doesn t need any software to access . B. stock recommendations etc. Sharekhan has ability to transfer funds from most banks.
CHAPTER SIX .
RESEARCH METHODOLOGY DESCRIPTIVE RESEARCH DESIGN The research design adopted in this study is DESCRIP TIVE RESEARCH DESIGN. SAMPLING DESIGN A sample design is a definite plan for obtaining a sample from a given population. The researcher selects the people according to their convenient. The researcher has no control over the va riables. It refers to the techniques or procedures the researcher woul d adopt in selecting items for the sample. CONVENIENCE SAMPLING The researcher adopted convenience sampling. The researcher used this research design to find out the respondents at titude and opinion about ULIP policies offered. . A descriptive research design is the one which is descript ion of the state of affairs as it exists at present. It is the non probability sampling is that sampling procedures does not any basis for estimati ng the probability that each item in the population has of included in the sampl e. It includes survey and fact finding enquiries of different kinds.
of Questions involved Noida. Laxmi nagar. Structured 12 . Greater Noida.SAMPLE SIZE A sample of 50 people was taken for the survey. SAMPLE DESIGN DETAILS OF THE SURVEY CONDUCTED Sample Size 50 20-30 years 30-40 years Target Population 40-50 years above 50 years Location Type of questionnaire No.Nehru Place. The required data co llected through questionnaire.
. • Possibility of Error in data co llection. • Companies did not disclose their secrets data and strategies. It means the investigators are trained to collect the information required for a n enquiry through schedule. The trained investigators meet the people concerned and fill up the schedules with the information supplied by them. • Possibility of Error in analysis of data due to small sample size. The primary source consist the data analyzed from questionnaire and interaction with the user at that only. DATA COLLECTION METHOD Data is collected through questionnaire schedule method.DATA the s of time COLLECTION The information required for our project was collect mainly from primary sources and even from secondary sources. And internet is used as secondary source. Limitations: • Time limitation • Research has been done only in Delhi.
CHAPTER SEVEN .
But people are not aware of the services so here Religare has to wo rk in this area. . How much income are you able to save or invest? a.10% b. Thus Religare has the opportunity to capture t his segment. others d. 9 0-10% . 3 30-40% .ANALYSIS AND INTERPRETATION 1. it was clear that among them maximum people invest in the category of 10-20%. 20 – 30% e. 8 0-10% 10-20% 20-30% 30-40% others 20-30% . 19 ANALYSIS: Among the 50 questionnaires filled. 30 – 40% others.20% c. 10 . 11 10-20% . 0 .
2. Do you invest/interested in stock market? (a) YES (b) NO . This would ultimately increase the profits. most of the people invest in the securities through share market and th en invest in the insurance. Thus more focus should be made on securities so that company has the maximum investment. You invest in which of the following financial instruments? (a) Securities (b ) Mutual fund (c) Commodities (d) Insurance (e) Other Instruments ANALYSIS: The above observation speaks about the financial instruments in which the people invest. 3.
but don’t have a good knowledge ab out it. 4. Do you have a demat account? (a) YES (b) NO . providing them the initial platform of online trading.no 42% yes no yes 58% ANALYSIS: It can be seen that among the whole population around 58% people either invest i n stock market or they are actually interested. So these people can actually become Religare’s target market but religare has to provide them the better services and brokerage plans and also.
So strategies should be made to convert these people in to our potential customers. If yes. 5. 32 ANALYSIS: Among 50 respondents 32 actually have a demat account and are aware of the deali ngs in stock trading.no. 18 yes no yes. The rest 18 are still in the other category. which type of demat account do you have? (a) Online (b) Offline .
As online broking is still at a premature stage in India. 21 have their demat ac count offline and rest 11 have their demat accounts online. 21 ANALYSIS: Among 50 respondents 32 had a demat account. 11 online offline offline. 6. Of these 32.online. In which company you have your demat account? (a) India Infoline (b) India Bu lls (d) Religare (e) ICICI direct (c) Kotak (f) Share khan . Thus more and more awareness should be mad e about the online broking services.
Also ICICIDirect giv es a good competition to Religare. Do you trade in Futures and Options? (a) Yes 1. (b) No .(g) Others ANALYSIS: Among these 32 people most of them have their demat account with ShareKhan and I ndiabulls. Thus these two are Religare’s biggest competitors. These brands have a good brand recall as comp ared to Religare.
ANALYSIS: It can be seen that among the population who invest in stock market. How often you trade in the stock market (a) Everyday (c) 12-18 days a month ( b) 2-3 Days a week (d) 2-3 days a month ANALYSIS: The above observation speaks about the. most of the people do trading every day. Thus more focus should be made on the traders which are every day traders. . So these people can actua lly become Religare’s target market as they generate heavy brokerage for the compa ny. 8. provide heavy brokerage to the company. The company should also focus on the others also because they are the traders for th e long term investment and also. around 37% people either trade in future or they trade in option. providing them the initial platform of online trading. Religare has to provide them the better services and brokerage plans and als o.
9. . R eligare can have the advantage of attracting their customers as they don’t charge the AMC on its brokerage plans and which will work to generate sales. Do you pay AMC (Annual Maintenance Charge)? (a) Yes (b) No ANALYSIS: A good percentage of people give the annual maintenance charge to the company.
11.02) % (c) (0.4) % ( e) 0.10. How much Brokerage do you pay on Intraday? (a) (0. So.05 % or more (b) (0.3 – 0.2) % (c) (0.05) % ANALYSIS: It can be seen that the companies are charging brokerage according to their own means. So.04) % (e) 0.5 % or more (b) (0.2 – 0.02 – 0.03 – 0.3) % (d) (0. the companies are creating biasness between the customers.03) % (d) (0.1 – 0. religare has the best feature of providing less brokerage and according to the customers wants. Even if th e customers portfolio is the same then also the brokerage may vary from the pers on to person.5) % ANALYSIS: .04 – 0.01 – 0. How much Brokerage do you pay on Delivery? (a) (0.4 – 0.
here also the biasness is created in the mind of the customers. Are they getting the good services? (a) Yes (b) No ANALYSIS: It can be seen from the observations that there are customers who are not satisf ied by the services given by the brokerage companies can be converted by providi ng better services to them. he is getting fewer services than the other one. 12. So. So. Religare got a great opportunity to attract the customers by giving the brokerage plans according to what the customer want. Sometimes even if the customers have the same or mor e investment then also. Rel igare can convert them by providing better services to them. . So.Here also you can see that the long term investors have to give brokerage accord ing to what the company wants.
Be tter .CHAPTER EIGHT RECOMMENDATIONS On the basis of these findings and analysis. It has can be surely said that in s tock broking industry. differentiation can become the key to higher revenues.
As more number of people will get comfortable with internet/technology. that to increase its share in the stock ex changes as they provide the largest share in terms of the investment. Formulation of more corporate schemes for employ ees of organizations falling under Religare’s corporate category. Taking Religare from the brand recognition stage to brand insistence stage. . broking (especially onl ine broking) will have a completely new meaning with more fringes coming into th e picture and more firms will offer umbrella services to their clients. straight through processing(STP). Thus mor e of strategies should be undertaken Providing better plans and schemes than our competitors like Sharekhan. Drafting a websi te which is both professional and user friendly Associating Religare with Ranbax y to make it a power brand. and ICICI direct are providing in terms of brokerage and subscription. Indiabulls. to attract the NRIs so. portfolio servic es. investment advisors and telephone call centers or branch investment offices are needed to retain customers and to increase the revenue base. immediate execution. Religare should make its brokerage structure more flexib le to give a good competition to the investors Some more collaboration with inte rnational firms and increasing its outlets not only in India but also outside th e world Also.service.
CHAPTER NINE Annexure QUESTIONNAIRE NAME: GENDER: OCCUPATION: AGE: ANNUAL INCOME: .
which type of demat account do you have? (a) Online (b) Offline .20% (d) 30 – 40% 2. Do you invest/interested in stock market? (a) YES (b) NO 4.10% (c) 20 – 30% (e) Ot hers (b) 10 . You invest in which of the following financial instruments? (a) Securities (c ) Commodities (e) Other Instruments (b) Mutual fund (d) Insurance 3. Do you have a demat account? (a) YES (b) NO 5.1. How much income are you able to save or invest? (a) 0 . If yes.
How often you trade in the stock market (a) Everyday (c) 12-18 days a month ( b) 2-3 Days a week (d) 2-3 days a month 9.01 – 0.02 – 0.05) % . Do you pay AMC (Annual Maintenance Charge)? (a) Yes (b) No 10.04) % (e) 0.03 – 0.02) % (c) (0.03) % (d) (0.04 – 0. Do you trade in Futures and Options? (a) YES (b) NO 8. In which company you have your demat account? (a) India Infoline (b) India Bu lls (d) Religare (g) Others (e) ICICI direct (c) Kotak (f) Share khan 1.6. How much Brokerage do you pay on Intraday? (a) (0.05 % or more (b) (0.
11. How much Brokerage do you pay on Delivery? (a) (0.1 – 0.2) % (c) (0.3 – 0.4) % ( e) 0.5 % or more (b) (0.2 – 0.3) % (d) (0.4 – 0.5) % 12. Are they getting the good services? (a) Yes (b) No CHAPTER TEN
REFERENCES http://www.religareonline.com http://religaresecurities.com/trade.asp http://www .hinduonnet.com/businessline/iw/2000/09/03/stories/0703g051.htm http://www.trade rji.com/ http://www.ShareKhan.com http://www.indiabulls.com http://www.icicidire ct.com http://www.chittorgarh.com/newportal/online-stock-brokers-list.asp www.fi nancialtimes.net http://www.religare.in/ http://www.milestonereligare.com/ Newspaper
• The Economic Times
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