PREFACE As a Part of BBA Program, Student has to pursue a project duly approved by the F aculty of Concerned area.

I had the privilege of underta ing the project on Relat ionship Mar eting in Capital Mar et in Religare Securities Limited. Main aim of t he Project is to study how to build a long term relationship with the customer. My Project wor is divided into following parts which are as under. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Objective Executive Summary Product Detail Relationship Mar eting Methodology Data analysis & Interpretation Finding & Recommendations Conclusion Appendices Bibliography

TO WHOM SO EVER IT MAY CONCERN

This is to certify that MR. ROHIT SINGH KUSHWAH student of BBA (final) 2007-2010 batch, SMPGC, has done his training project under my supervision and guidance. During his project he was found to be very sincere and attentive to small detail s whatsoever was told to him.

Head of department(BBA) SMPGC JAIPU R

I wish him good luc

and success in his future

Ms SEEMA SHARMA

DECLARATION I Rohit singh ushwah, Student of BBA Final Year, Smpgc jaipur, Hereby declare t hat the project on Relationship Mar eting in Capital Mar et has been done under th e guidance of Ms. Seema Sharma (HOD. BBA), Institute of Management Studies & Mr . Sachin Aggarwal,{ Sr. Relationship Manager (Preet vihar Branch)} Religare Secu rities Limited, New Delhi.

WAH BBA FINAL Y EAR SMPGC JAIPUR

CONTENTS List of Tables List of Graphs / Figures TOPIC 1. 2. PAGE NO EXECUTIVE SUMMARY INTRODUCTION INDUSTRY PROFILE COMPANY PROFILE ORGANISATION STRUCTURE 9 3. OBJECTIVES 24 7

ROHIT SINGH KUSH

4. METHODOLOGY 26

5. PRODUCT DETAILS STOCK TRAIDING DEPOSITORY SERVICES MARGINAL FINANCING MUTUAL FUND COMMODITY TRAIDING 34 6. RELATIONSHIPMARKETING 59 7. SWOT ANALYSIS 77 8. DATA ANALYSIS & INTERPRETATION 84 9. FINDINGS 115 10. LIMITATIONS OF STUDY 117 11. CONCLUSION & RECOMMENDATIONS 12. APPENDCES 123 13. ANNEXURE 125 14 .BIBLIOGRAPHY 128

119-121

EXECUTIVE SUMMARY The Present business scenario is totally consumer oriented. Every company faces stiff competition from its competitors, each provides the best product at compet itive rates. As a result customers have lot of choices to get the best with the least cost. To face this competition, it is very important to now customers beha vior, there needs, preference and also the motivation factors. My Project was on Relationship Mar eting ncial product with in Jaipur. to now the of the client so as to cater the needs in business to expand its networ & also its of Financial Products Dealing in the fina Motivational & demotivational factors most appropriate manner. It will help services.

I had done my project under the guidance of My Guide Mr. Raman Talwar (Branch Ma nager) Mr. Sachin Aggarwal (senior relationship manager) and MR. Nesar Ahmed (Re lationship manager) whose guidance helps me in completing my Project Wor Succes sfully. Religare Securities Limited Provide its Expert service in Capital mar et Operati ons to institutional Investors. Company is a Member of National Stoc Exchange a s well as Bombay Stoc Exchange. Religare is slowly but steadily gaining mar et share and goodwill in the Mar et. Its strategies for mar eting its services as w ell as developing a good Relationship Mar eting with its client has given an edg e over the other service providers. Religare is on expansion path and is loo ing forward to be in the top. Religare is a very flexible organization and its give s equal opportunity to its young and energetic staff to wor so as to bring this organization among the top. This project also throws lights on the wor ing frame of bro ing service. This in dustry is on the spree to adopt the latest technology and thus any player has to be dynamic in this industry. The comparative analysis done in this project show how Religare has built competitive edge on some

ground. The Project help you understand the strategies of this industry right fr om De-Mat to Trading, Margin to analysis and ris to return. I hope this project prove to be beneficial for the Company and also give the reader a through idea about the industry. I learnt a l ot through out the process of underta ing this project report. To fulfill my tas I had to visit the client personally who are dealing in share trading with this company or some other bro ing house. For this project I was assign the target of 10 accounts, for which I first gener ated the database and made appointment with them and convert them in as traders of Religare Securities Limited, for this I have to convince them and explain the concept and collect the Trading Form and a cheque of Rs. 5000 only. After going through the exercise I found that RSL is one of the upcoming compani es in the Mar eting of financial Product, as the credibility of other companies are going down in the mar et and it is the right time for the RSL to built its r eputation in the mar et. The Main reason for RSL low mar et share is because of local bro ers in the mar et which a charging very less Margin as initial investm ent for Trading in Stoc Mar et. But No doubt it is having lots of scope to grow in the financial Mar et, and I w ish it is having a shining future in the coming years.

ABOUT RELIGARE SECURITIES INTRODUCTION Religare is driven by ethical and dynamic process for wealth creation. Based on this, the company started its Endeavour in the financial mar et. Religare Enterprises Limited (A Ranbaxy Promoter Group Company) Through Religare Securities Limited, Religare Finvest Limited, Religare ComdexLi mited and Religare Insurance Advisory Services Limited provides integrated Finan cial solutions to its corporate, retail and wealth management clients. Religare is proud of being a truly professional financial service provider manag ed by a highly s illed team, who have proven trac record in their respective do mains. Religare operations are managed by more than 1500 highly s illed professionals w ho subscribe to Religare philosophy and are spread across its country wide branc hes. Today, we have a growing networ of 150 branches and more than 300 business partners spread across 180 cities in India and a fully operational International office at London However, our target is to have 400 branches and 1 000 business partners in 300 cities of India and more than 8 International offic es by the end of 2007.

Unli e a traditional bro ing firm, Religare group wor s on the philosophy of par tnering for wealth creation. We not only execute trades for our clients but also provide them critical and timely investment advice. The growing list of financi al institutions with which Religare is empanelled as an approved bro er is a ref lection of the high level service standard maintained by the company. Religare has a very credible team research & Analysis division, which not only c aters to the need of our institutional client but also gives there valuable inpu t to investment dealers. Religare is among the capital mar et fraternity and the most vibrant place in te rms of information and every day it is consolidating its efforts to provide more customized services to its clients. Religare in recent past has been constantly innovating in terms of the product & services which it offers, and in this respect it has started a premium NRI, HNI s & corporate servicing group. This group specifically caters to the growing inv estment needs of these premium clients categories by ta ing all there portfolio investment decisions depending upon there ris / returns parameter.

FORTIS SECURITIES LIMITED MISSION: Providing integrated financial care driven by the relationship of trust and conf idence. VISION: To be India s first Multinational providing complete financial services solution across the globe.

RELIGARE SECURITIES LIMITED Religare Group of Companies: Religare Enterprises Limited group comprises of Religare Securities Limited, Rel igare Comdex Limited, Religare Finvest Limited and Religare Insurance Advisory L imited which deal in equity, commodity and financial services business. RSL is one of the leading bro ing houses of India and are dealing into Equity Br o ing, Depository Services, Portfolio Management Services, Institutional Equity Bro erage & Research, Investment Ban ing and Corporate Finance Extension of services has been a constant feature in Religare to regard the need s of our clients. Consequently, company is soon going to launch Internet Trading and Merchant Ban ing. This would ta e care of different investment needs of dif ferent classes of investors To facilitate free and fare trading process Religare is a member of major financ ial institutions li e, National Stoc Exchange of India, Bombay Stoc Exchange o f India, Depository Participant with National Securities Depository Limited and Central Depository Services (I) Limited, and a SEBI approved Portfolio Manager RSL serves a platform to all segments of investors to avail the opportunities of fered by investing in Indian equities either on their own or through managed fun ds in Portfolio Management.

Religare Comdex Limited:

Religare is a member of NCDEX and MCX and provides platform for trading in commo dities, which is an online facility also. RCL provides platform to both agro and non-agro commodity traders to derive the actual price of the commodity and also to trade and hedge actively in the growin g commodity trading mar et in India. With this realization, Religare Comdex is coming up with its branches at 42 mand i locations. It is a flagship effort from our team which would be helpful in fac ilitating trade and speculating price of commodities in future. Religare Finvest Religare Finvest Limited (RFL), a Non Ban ing Finance Company (NBFC) is aggressi vely ma ing a name in the financial services arena in India. In a fast paced, co nstantly changing dynamic business environment, RFL has delivered the most compe titive products and services. RFL is primarily engaged in the business of providing finance against securities in the secondary mar et. It also provides finance for application in Initial Pu blic Offers to non-retail clients in the primary mar et RFL is also planning to initiate personal loan portfolio as fund based activity and mutual fund distribution as fee based activities Along with this, the company also underta es non-fund based advisory operations in the field of Corporate Financing in the nature of Credit Syndication which in cludes bills discounting, inter corporate deposit, wor ing capital loan syndicat ion, placement of private equity and other structured products

Religare Insurance Advisory Ltd. Religare has been ta ing care of financial services for long but there was a mis sing lin . Financial planning is incomplete without protective measure i.e. stru ctured products to ta e care of event of things that may go wrong Consequently, Religare is soon coming up with Religare Insurance Advisory Servic es Limited. As composite insurance bro er, we would deal in both insurance and r einsurance, providing our clients ris transfer solutions on life and non-life s ides. This service will ta e benefit of Religares vast business empire spread throughou t the country -- providing our valued clients insurance services across India. W e aim to have a wide reach with our services literally! Thats why we are catering the insurance requirements of both retail and corporate segments with products of all the insurance companies on life and non-life side Still, there is more in store. We also cater individuals with a complete suite o f insurance solutions, both life and general to mitigate ris s to life and asset s through our existing networ of over 150 branches expected to reach 250 by the end of this year! For corporate clients, we will be offering value based customized solutions to c over all ris s which their business is exposed to. Our clients will be supported by an operations team equipped with the best of technology support. Religare Insurance Advisory aims to provide neutral, transparent and professiona l ris transfer advice to become the first choice of India.

COMPANY PROFILE Religare Securities Ltd. is a wholly owned subsidiary of Fortis Financial Servic es Ltd. A company promoted by the late Dr. Parvinder Singh, Ex- CMD of Ranbaxy L aboratories Ltd. The Primary focus of RSL is to cater services in capital Mar et operations to In stitutional Investors. The company is a member of the National Stoc Exchange (N SE). BUSINESS & OPERATION BUSINESS Over a period of time RSL has recorded a healthy growing rate both in business v olume and profitability as it only the major players in this line of business. T he business thrust has mainly in the development of business from Financial Inst itutions, Mutual Funds and Corporate. OPERATIONS The operations of the company are broadly organized among the following function s. 11. Research & Analysis

This group is focused on doing stoc pic s and periodical scrip/ Segment specifi c research. They provide the best of analysis in the industry and are valued by both our institutional and Retail Clients.

12. Mar eting This group is focused on trac ing potential business opportunity and converting them into business relationships. Evaluation the need of the clients and tailori ng products to the meet there specific requirements help the company to build la sting relationship. 13. Dealing Enabling the clients to procure the best rates on there transactions is the core function of this group. 14. Bac office This group ensures timely delivery of securities traded, operation matters with stoc exchange, statutory compliance, handling tas s li e pay-in, pay-out, etc. This section is fully automated to enable the staff to focus on the technicaliti es of securities trading and is manned by professionals having long experience i n the field.

INFRASTRUCTURE Offices The company has offices located at prime location in Mumbai, New Delhi, Kol atta and Chennai. The offices are centrally located to cater to the requirements of institutional and corporate clients and retail clients, and for ease of operatio n due to proximity to stoc exchange and ban s. Today we have more than 170 bran ches all over India. Communications The company has its disposal, an efficient networ of advance communication syst em and intend to install CRM facilities, besides this it is implementing interac tive client information dissemination system which enable clients to view there latest client information on web. It has an installed multiple WAN to interconne ct the branches to communicate on real time basis. The company is equipped with most advanced system to facilitate smooth functioni ng of operations. It has installed its major application on IBM machine and uses latest state of art financial software.

MANAGEMENT Mr. Sunil Godhwani is Chief Executive Officer and Managing Director of Religare Securities Limited. He is also the CEO and MD of the parent company Fortis Finan cial Service Limited and is managing the entire operations of both the companies . CEO is supported by various HODs who are creditable professional consisting of C hartered Accountants, MBAs with varied experience in financial services and stoc bro ing functions. The Board of Directors consists of Mr. Harpal Singh as Chairman and Mr. V.K. Kau l, Mr. Malvinder Mohan Singh, Mr. Shivinder Mohan Singh as Directors. DEPOSITORY PARTICIPANT SERVICES

Religare Securities Limited has also ventured into depositary services to its cl ients and is among leading depository services provider having more than 3000 Cr ore worth of securities under its custody.

COMPETITIVE EDGE IN MARKET 15. Participant on the countrys premium exchange:

Religare is a member of the countrys premium stoc exchange- The National Stoc E xchange of India (NSE) as well as Bombay Stoc Exchange (BSE) Clearing membership on Capital & Derivative Segments: It has clearing membership on both the Capital Mar et and Derivative segments of the exchange. We are also authorized to trade the retail debt mar et. Depositary Participant with NSDL & CDSL: We are depositary participants with the country premium depositary service- Nati onal Securities Depository limited (NSDL) as well as with the only depository wi th a country wide reach Central Depositary Service Limited (CDSL) Leading Private sector ban as partner: Our ban ing partner is HDFC Ban , ICICI Ban & UTI Ban The foremost private sec tor ban in the country, which has the most technologically advanced infrastruct ure in the country, with internet ban ing allowing access to information 24x7.

Prime office location: We have prime office location in the nations political capital and the business c apital Delhi & Mumbai. Research Capabilities: We have a dedicated team of analysts in our Bombay office They provide fundament al analysis of stoc and mar ets, which are fundamentally strong and are helpful

for retail investors. Technical Analysis: A daily technical newsletter is published by our in house technical analyst, who is a recognized leading practitioner in capital mar et. He trac s the progress of the calls on the real- time basis, and advises of any change in the profit po ints of stop loss levels. Thus with this in house services that is provided by Religare Securities Ltd. To its Clients has given a competitive edge & more over it has given trust and con fidence to its retail investors to as to build a long term relationship with its clients.

CORPORATE STRUCTURE Our organization is led by individual who are professional and leaders in every sense of the world. Experts in their respective domain, esteem members of our Bo ard of Directors are:

Mr. Mr. Mr. Mr. Mr.

Name Designation Harpal Singh Chairman Vinay Kumar Kaul Director Malvinder Mohan Singh Director Shivinder Mohan Singh Director Sunil Godhwani M.D

STRUCTURE OF THE ORGANIZATION The company owes its success to its strong management team, most of which has be en there since its inception.

Organization Structure: National Sales and Mar eting Head Vice President-Investment Assistant Vice President-Investment Zonal manager investment Head Senior Investment manager Manager Investment Relationship Manager Associate Relationship Manager Asst. Relationship Managers Relationship Executive.

Vice President-Sales Assistant Vice President-Sales Regional Sales Branch Manager Team Leader

OBJECTIVES

Primary Objective:

Secondary Objective: To study various financial products li e Equity, Mutual Funds, Commodity& Portfo lio Management Services. To Study the various services provided by Bro er house to there clients. To now investors experience in capital mar et To study what other services investors expect from their bro er house.

To Study how to build a relationship mar eting in Capital Mar et.

RESEARCH METHODOLOGY Research:The study of research method provides you with the nowledge and s ill s you need to solve the problem and meet the challenges of the fast- based decis ion. Mar eting environment we define Business Research as a systematic inquiry w hose objective is to provide information to solve managerial problem. It see s to find explanation to unexplored phenomena to clarify the doub tful facts and to correct the misconceived facts. Types of Research: Descriptive Research: Descriptive study is a fact- finding investigation with adequate interpr etation. It is the simplest type of research. It is more specific than an explan atory study, as it has focus on particular aspect of the problem studied. It is designed to get her descriptive information and provide information for formulat ing more sophisticated studies. Data are collected by using one or more appropri ate method, observation, interviewing and mail questionnaire.

Type of Data Used:There are basically two types of Data Primary Data Secondary Data Primary Data:Primary Data is first hand information that the researcher collects. It h elps in collecting useful and most accurate information that is needed for the r esearcher to do his research. Sources of Primary Data: Questionnaire Interview Schedule

Secondary Data:Secondary data is what the researcher collects from different sources. It a lso help researcher to get elaborate information to do his research.

Sources of Secondary Data: Internet Journals Target Group/ Population:As this research is based on Relationship Mar eting my Target group is m y Clients who are using the Services of Religare Securities in Dealing with Capi tal Mar et. Area of Study:Jaipur city Tools for Data Collection:The Various method of Data gathering involves the use of appropriate recordi ng forms. These are called tools or instrument of data collection. Sample Size :50 (Fifty)

Questionnaire: Close Ended Question:Are structured ones with two or more alternative responses from which respondent can chose. They contain standardized answers and they are simple to administer and easy to compile and analyzes. Dichotomous or two- choice questions:A dichotomous question can be answered in one of the two responses such as Yes or No. It is necessary to realized that in many two choices question there may be potential alternative beyond the stated two. Multiple Choice questions:These questions contain more than two alternatives. Following points should be remembered before ma ing this question The list of alternative choice should be exhaustive. It Should not overlapping There should be fair balance in choice All alternative should be reasonable.

SAMPLING The Basic idea of sampling is that by selecting some of the element in a po pulation in order to get first hand information of study. There are two type of sampling probability Sampling & Non probability sampling a nd in this research, Researcher has ta en probability sampling. Probability Sampling: Probability sampling is most commonly associated with survey based research w here you need to ma e inferences from your sample about a population to answer y our research questions or to meet your objectives. The process of probability sa mpling can be divided into four stages: 1. Identify a suitable frame based on your research question or objectives 2. Decide on a suitable sample size 3. select the most appropriate sampling technique and select the sample 4. Chec that the sample is representative of the population The objective of probability sampling depends on the research question & on the objective. Subsequently I need to have face to face contact with respondents.

Simple random sampling Simple random sampling involve in selecting sample at random from the sampling f rame using either random no. table. In my research I had use random selection of respondent who used to come for the trading purpose in Religare securities offi ce it is most accurate and easily accessible form of sampling method Convenience Sampling Convenience or haphazard sampling involve selection haphazardly those cases that are easiest to obtain for your sample, Such as the person interviewed at random in a shopping center for the interview programmed. The sample selection process is continued until your required sample size has been reached. Although this te chniques of sampling is widely used it is prone to bias and influence that are b eyond your control. I has selected convenience sampling as some of the responden t are my clients only. Technique used for analysis & interpretation: Bar Diagram & Pie Chart Percentage Analysis Chi Square Test

Percentage Analysis: Percentage Analysis is used for ma ing comparison between two or more series of data. Percentage (%) = No. of respondents * 100 / Total No. of respondents.

Chi- Square Test: Many time manager need to now weather the differences they observe among severa l sample proportion are significant or only due to chance. X2 = (fo-fe)2 fe

Determine Degree of Freedom: No. of degree of freedom = (No. of rows -1) (No. of Columns-1)

Pilot Testing:A pilot testing and provide proxy pilot survey is to answer and improve

is conducted to detect wea ness in design and instrumentation data fro flections of a probability sample. The objective of filter unnecessary question, question which are difficult to the phrases of certain question.

PRODUCT DETAILS:Stoc Trading (RACE & RALLY) Depositary Services Marginal Financing Mutual Fund Distribution Portfolio Management Scheme Commodity Trading

R-ACE (Basic)

Account activation charges Rs. 299/Minimum margin of Rs. 5000/- required No software installation required, easily accessible on browser NSE cash segment, NSE F&O and BSE on single platform Trade online and over phone Access your ledger balances and account information over internet and phone Integrated DP, bac -office and trading account Earn interest on cash margin deposited with us Online transfer of funds through multiple ban s Lifetime free DP account (No annual maintenance charges)*

R-ACE Lite (Advanced)

Account activation charges Rs. 499/Minimum margin of Rs. 5000/- required No software installation required, easily accessible on browser NSE cash segment, NSE F&O and BSE on single platform Real-time streaming quotes Alerts Hot ey functions Trade online and over phone Access your ledger balances and account information over internet and phone Integrated DP, bac -office and trading account Online transfer of funds through multiple ban s Lifetime free DP account (No annual maintenance charges)*

R-ACE Pro (Professional)

Account activation charges Rs. 999/Minimum margin of Rs.10 000/- required Traders terminal on your des top NSE cash segment, NSE F&O and BSE on single platform Real-time streaming quotes Technical charting (intra-day and EOD) Multiple watch list Advanced hot- ey functions for faster trading Derivative chains Futures & options calculator Access your ledger balances and account information over internet and phone. Integrated DP, bac -office and trading account Online transfer of funds through multiple ban s Lifetime free DP account (No annual maintenance charges)* Earn interest on cash margin deposited with us Trade online and over phone

TRADING Introduction The trading on stoc exchanges in India used to ta e place through open outcry w ithout use of information technology for immediate matching or recording of trad es. This was time consuming and inefficient. These imposed limits on trading vol umes and efficiency in order to provide efficiency, liquidity and transparency. NSE introduced a nation-wide on-line fully-automated screen based trading system (SBTS) where a member can punch in to the computer quantities of securities and the price at which he li es to transact and the transaction is executed as soon as it finds a matching sale or buy order from a counter party. SBTS electronica lly matches orders on a strict price/ priority and hence cuts down on time, cost and ris of error, as well as on fraud resulting in improved operational effici ency. It allows faster incorporation of price sensitive information in to prevai ling prices, Thus increasing the informational efficiency of mar ets, it enables mar et parti cipants, irrespective of their geographical locations, to trade with one another simultaneously, improving the depth and liquidity of the mar et. It provides fu ll Anonymity by accepting orders, big or small, from members without revealing t heir identity, thus providing equal access to everybody

It also provides a perfect audit trail, which helps to resolve disputes by loggi ng in the trade execution process in entirety. This suc ed liquidity from other exchanges and in the very first year of its ope ration, NSE becomes the leading stoc exchange in the country, impacting the for tunes of other exchanges and forcing them to adopt SBTS also. Today India can bo ast that almost 100% trading ta e place through electronic order matching.

Technology was used to carry the trading platform from the trading hall of stoc exchanges to the premises of bro ers. NSE carried the trading platform further to the PCs at the residence of investors through the Internet and to handheld de vices through W A P for convenience of mobile investors. This made a huge differ ence in terms of equal access to investors in a geographically vast country li e India. The trading networ is depicted in Figure 1.1 NSE has main computer which is con nects through Very small Aperture Terminal (VSAT) installed at its office. The m ain computer runs on a fault tolerant STRATUS mainframe computer at the Exchange . Bro ers have terminals (identified as the PCs in the Figure1) installed at the

ir premises which are connected through VSATs/leased lines/modems. An investor i nforms a bro er to place an order on his behalf. The bro er enters the order tho rough his PC, which runs under Windows NT and sends signal to the satellite via VSAT/leased line/modem. The signal is directed to mainframe. FIGURE 1.1