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COMPARATIVE STUDY OF BROKERAGE STRUCTURE BETWEEN RELIANCE SECURITIES & OTHER BROKING HOUSE

COMPARATIVE STUDY OF BROKERAGE STRUCTURE BETWEEN RELIANCE SECURITIES & OTHER BROKING HOUSE

SUMMER INTERNSHIP PROJECT REPORT 2011

SUBMITTED TO:
Gujarat Technological University

SUBMITTED BY:
JAIMIN PATEL
Enrollment No - 108070592051

Sal Institute of Management

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COMPARATIVE STUDY OF BROKERAGE STRUCTURE BETWEEN RELIANCE SECURITIES & OTHER BROKING HOUSE

COMPARATIVE STUDY OF BROKERAGE STRUCTURE BETWEEN RELIANCE SECURITIES & OTHER BROKING HOUSE

By (JAIMIN PATEL- Enrollment No-108070592051)

The SIP project report submitted In Partial fulfillment of the requirements For the degree of MASTERS OF BUSINESS ADMINISTRATION (MBA) 2 years Full Time Program of Gujarat Technological University

Internal Guide
PROF. SHAKUNT JADAV SAL Institute of Management Ahmedabad.

External Guide MR ATUL CHOTIA Reliance Securities, Ahmedabad.

SAL INSTITUTE OF MANAGEMENT


GUJARAT TECHNOLOGICAL UNIVERSITY JULY, 2011

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Certificate

This is to certify that the project work title COMPARATIVE STUDY OF BROKERAGE STRUCTURE BETWEEN RELIANCE SECURITIES & OTHER BROKING HOUSE Is the bonafide work of JAIMIN PATELEnrollment No-108070592051

Carried out in the partial fulfillment of the SIP of Masters of Business Administration at SAL Institute of Management Academic Session June-July 2011.

PROF. SHAKUNT JADAV Asst. Professor SAL Institute of Management Sign : __________________

DR. VIRAL BHATT Principal, SAL Institute of Management Sign : __________________

SAL INSTITUTE OF MANAGEMENT

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DECLARATION

I JAIMIN PATEL do hereby declare that the project report entitled COMPARATIVE STUDY OF BROKERAGE STRUCTURE BETWEEN RELIANCE SECURITIES & OTHER BROKING HOUSE is the result of my own efforts. I am submitting my project report to the placement cell of my college and I have never submitted this project report anywhere else.

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Acknowledgements
We are extremely thankful to Mr. ATUL CHOTIA for their valuable guidance and the helpline they have provide us throughout our completion of the project we have undertaken as our SIP. They were always there to lend a helping hand & directed us towards proper attitude to develop the project. They have always welcomed our queries and doubts regarding the project work and also in the subjects they have taken with a great interest to teach us. Without their help and right guidance the completion of the project would have been very difficult.

The level of knowledge they possess has covered entire aspects of the management expertise in different fields particularly in our project related (Marketing/Finance). We are also thankful to our college SAL Institute of Management for offering us such a great subject that binds all the knowledge we have gained through this SIP. And last but not the least we would like to thank all our friends who have provided their thoughts about our project during development and for the further enhancement.

Thanking you,

NAME - JAIMIN PATEL ENROLLMENT NO 108070592051

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EXECUTIVE SUMMARY The project work is pursued as a part of MBA (Finance & Marketing) at Sal Institute Of Management . It is undertaken as a traineeship at Reliance Money Ltd. The project is done under expert supervision and guidance of Mr.Shakunt Jadav (Faculty of Marketing) and Mr. Atul Chotia (Branch Manager, RELIANCE
SECURITIES, Ahmedabad).The Project is about the study of marketing

and sales of financial products and also the efforts done to make improvements in the customer acquisition process for better results. At Reliance Securities, initially the trainees were imparted process and product knowledge. They were given sufficient time to know about the products. They had to work with the sales representatives of the Distributor and think of ways of improving the sales and distribution channel and implementing th em. The main aim was to increase sales and for this different ways were tried and implemented. They were provided with database and had to make cold calls from the data. Company activity was also one of the major sources for generating business. Initially they even accompanied sales representatives to the clients place. Main objective was to know the need of the customer and how to fulfill that in the best way. The project dealt with : 1. 2. 3. 4. 5. Trading Equities Derivatives Commodities Demat selling

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Thus it gave trainees the opportunity to learn about all the products and with the range of products. Reliance money offered it made the task a bit easier as we could fulfill the need of the customer in a better way. My task was divided in 3 phase

1. PRODUCT KNOWLEDGE:- This phase includes all information about the financial products provided by the company like equities, Derivatives and commodities. 2. TRADING:- This phase includes all information about online trading process and brokerage details. 3. DEMAT ACCOUNT OPENING: - This phase includes a task to convince the customers to open a demat account for online trading. With the end of 8 weeks every phase was completed and it gave us the real experience of retail as well as corporate world.

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CONTENT Title Chapter 1 Introduction About Industry About Reliance Capital About Reliance Money Products of Reliance Money About The Share trading A/c, Trading portal & Demat account, Brokrage and facilities of Reliance Money Working of Reliance Money & its hierarchy About Competitors SWOT Analysis Chapter 2 Research Methodology & Objectives Objectives Methodology Findings & Learnings Findings Learnings Chapter 4 Conclusion & Recommendations Conclusion Recommendations Chapter 5 Chapter 6 Limitations of Study Bibliography & APPENDIX Page no. 9 10 12 13 25 32

54 56 67 69 70 71 73 74 82 83 84 85 86 88

Chapter 3

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Chapter

Introduction

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INDUSTRY PROFILE
RELIANCE-ANIL DHIRUBHAI AMBANI GROUP

Founder Dhirubhai H. Ambani RELIANCE GROUP OF COMPANIES

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Growth through Vision "Growth has no limit at Reliance. I keep revising my vision. Only when you can dream it, you can do it."
The Reliance Anil Dhirubhai Ambani Group is among Indias top three private sector business houses on all major financial parameters, with a market capitalisation of Rs100,000 crore (US$ 22 billion), net assets in excess of Rs 31,500 crore (US$ 7 billion),and net worth to the tune of Rs 27,500 crore (US$ 6 billion). Across different companies, the group has a customer base of over 50 million, the largest in India, and a shareholder base of over 8 million, among the largest in the world. Through its products and services, the Reliance - ADA Group touches the life of 1 in 10Indians every single day. It has a business presence that extends to over 4,500 towns and 300,000 villages in India, and 5 continents across the world. The interests of the Group range from communications (Reliance Communications) and financial services (Reliance Capital Ltd), to generation, transmission and distribution of power (Reliance Energy), infrastructure and entertainment.

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COMPANY PROFILE
Reliance Capital Ltd Part of Reliance - Anil Dhirubhai Ambani Group.

Reliance Capital is one of Indias leading and faste st growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies. In terms of net worth. Reliance Capital has interests in asset management and mutual funds, life and general insurance, private equity and proprietary investments, stock broking and other activities in financial services. RCL is registered as a depository participant with National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL) under the Securities and ExchangeBoard of India (Depositories and Participants) Regulations, 1996. RCL has sponsored the Reliance Mutual Fund within the framework of the Securities and Exchange Board of India (Mutual Fund) Regulations, 1996. RCL primarily focuses on funding projects in the infrastructure sector and supports the growth of its subsidiary companies, Reliance Capital Asset Management Limited, Reliance Capital Trustee Co. Limited, Reliance General Insurance Company Limited and Reliance Life Insurance Company Limited. As of March 31, 2005, the companys investment in infrastructure projects stood at Rs. 1071 Crores. The investment portfolio of RCL is structured in a way that realizes the highest post-tax return on its investments.

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Anil Dhirubhai Ambani - Chairman

Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil D Ambani, 50, is the chairman of all listed companies of the Reliance ADA Group, namely, Reliance Communications, Reliance Capital, Reliance Energy, Reliance Natural Resources and Reliance Power. He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute of Information and Communication Technology, Gandhi Nagar, Gujarat. Till recently, he also held the post of Vice Chairman and Managing Director in Reliance Industries Limited (RIL), India's largest private sector enterprise. Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally involved in every aspect of the company's management over the next 22 years. He is credited with having pioneered a number of path-breaking financial innovations in the Indian capital markets. He spearheaded the country's first forays into the overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds. Starting in 1991, he directed Reliance Industries in its efforts to raise over US$ 2 billion. He also steered the 100-year Yankee bond issue for the company in January.

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BOARD OF DIRECTORS

Amitabh Jhunjhunwala, Vice-Chairman Amitabh Jhunjhunwala, an FCA, has over 23 years of experience in finance and the capital markets. Amitabh is also the Director of Reliance Capital Asset Management Limited.

Shri C. P. Jain Shri C.P. Jain, aged 60 years, is the former Chairman and Managing Director of National Thermal Power Corporation (NTPC).

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Rajendra Chitale, Independent Director Rajendra P. Chitale, an eminent Chartered Accountant, is the Managing Partner of M/s M. P.Chitale & Co. He is a Director on Boards of the National Stock Exchange of India (NSE), Asset Reconstruction Company (India) Ltd, Hinduja TMT Ltd and Gujarat Ambuja Cements Ltd. He is also a member of the Advisory Group on Derivatives and the Takeover Panel, Securities and Exchange Board of India, as well as the Company Law Advisory Committee of the Government of India.He has also served on the boards of Life Insurance Corporation of India, Unit Trust of India, SBI Capital Markets Ltd and Small Industries Development Bank of India..

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ORGANIZATION STRUCTURE:-

GROUP CO. CHAIRMAN CEO STARTED SINCE NO. OF BRANCHES NO. OF FRANCHISEES NO. OF BROKING ACCOUNTS TOTAL NO. OF CUSTOMERS

Anil Dhirubhai Ambani Group Mr.Anil Ambani Mr.Sandeep Bandopadhyay Publicly Launched On: April 11, 2007 More Than 250 Branches

More Than 6233 1010000 3500000

REGISTERED OFFICE: Corporate Office Reliance Securities Ltd 11h Floor, R-Tech Park, Nirlon Compound, Western Express Highway, Land mark Near Hub, behind Oracle Building Goregaon (East), Mumbai - 400063 Maharashtra. Board Line - 022 30591234 Fax - 022 30591555

AHMEDABAD OFFICE:
Abhishilp, Shop no. 4, Ground floor, Keshav Baug Party Plot,Premchand Nagar Road, off 132' Ring Road, Satellite, Ahmedabad 380015 (Vastrapur) Contact No. 30483457 : 079-30483455, 079-

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INDUSTRY TYPE PRODUCTS

Share Broking Firm Equity IPOs Derivatives Commodities Trading Mutual Funds Insurance Offshore Investment

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Reliance Securities Limited is a Reliance Capital company and part of the Reliance Anil Dhirubhai Ambani Group. Reliance Securities is a permitted user of the brand "Reliance Money" for promoting its various products and services. Reliance Securities endeavors to change the way investors transact in equities markets and avails services. It provides customers with access to Equity, Derivatives, Portfolio Management Services, Investment Banking, Mutual Funds & IPOs. It also offers secured online share trading platform and investment activities in secure, cost effective and convienent manner. To enable wider participation, it also provides the convenience of trading offline through variety of means, including Call & Trade,Branch dealing Desk and its network of affiliates. Reliance Money through its pan India presence with 6,233 outlets, has more than 3.5 million customers. Reliance Capital is one of India's leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking groups, in terms of net worth. Awards and Achievements

India's largest e-broking house and Best Equity House 2009 - Awarded by Dun and Bradstreet 2009. Reliance Money has been rated no. 1 by Starcom Worldwide for online security and cost effectiveness in 2007. Reliance Money has been awarded Debutant Franchisor of the Year 2007 by Franchise India Holdings Ltd.

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Introduction:Whether its retiring early, saving for childrens education, paying off a loan or to live a secured and satisfied life everyone has dreams they can achieve by investing their savings. However, the question that arises is that, should one leave his money tucked away in the bank or plough it into the stock market where the potential for higher returns is greater but the chances of losing money is higher? Deciding where to invest depends on one`s attitude towards ri sk (one`s capacity to take risk and one`s tolerance towards risk) and the investment horizon and non-availability of guaranteed-return

investment products. In such a scenario, investing in equity, which offers returns that are higher than the inflation rat e, help to build wealth and to improve the standard of living. India is a developing economy.its prospering in all spheres. Share market is a compelling determinant of the economy and the financial situation of a country.Ever since the liberalization, privatization and globalization, the foreign investment in our country is booming. Share market is a clear indicator of the developing trend prevailing in our country.Statistics reveal that the trade volume has been increasing continuously,coupled with the ups and downs which is a nature of share trading. We are living in an interlinked world.with the growing volume of trade,it has become a necessity that people are aware of the intricacies of the web world. SENSEX the benchmark indicator of share trading has more than tripled ever since on line share trading commenced.it has become imperative to be a participant of this mode of trading.
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Recently,the crisis in the financial market resulted in global inflation.the share market was a clear indicator of the prevailing prices. Share trading is a way of faster earning and losing money. In the recent years,a volatile market could be witnessed. In the desire to earn money in a quick manner,more and more people have ventured out into share trading. Lack of awareness of many investors have made them loose lakhs of money in the stock market. Wise plays by many others have made them earn in crores. Where the American NASDAQ is in the commanding position,hongkong,Tokyo etc are some of the asian exchanges being quoted repeatedly when it comes to news about the share market. SENSEX is not far behind.indian bourses are also often quoted. Electronic trading or online trading eliminates the need for physical trading floors.brokers can trade from their offices,using fully automated screen based processes. Their workstations are connected to a stock exchanges central computer via satellite using Very Small Aperture Terminus(VSATs). The orders placed by brokers reach the exchanges central computer and are matched electronically.

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STOCK EXCHANGE:A stock exchange, share market or bourse is a corporation or mutual

organization which

provides facilities for stock brokers and traders , to trade also provide facilities capital

company stocks and other securities .Stock exchanges

for the issue redemption, as well as, other financial instruments and

events including the payment of income and dividends . The securities traded on a stock exchange include: shares issued by companies ,unit trusts and other pooled investment products and bonds .To be able to trade a security on a certain stock exchange, it has to be listed . Usually there is a central Location at least for recordkeeping, but trade is less and less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of speed and cost of transactions. Trade on an exchange is by definition done in the primary market and subsequent trading is done in the secondary market. Supply and demand in stock markets is driven by various factors which, as in free markets, affect the price of stocks(see stock valuation).There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be subsequently traded on the exchange. Such counter.This is the trading is said to be off exchange or over-the-

usually way that bonds are traded. Increasingly more and

more stock exchanges are part of a global market for securities.

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THE ROLE OF THE STOCK EXCHANGE:RAISING CAPITAL FOR BUSINESSESS:The stock exchange provides companies with the facility to raise capital for expansion through selling shares to the investing public. MOBILIZING SAVINGS FOR INVESTMENT:When people draw their savings and invest in shares, it leads to a more rational allocation of resources because funds, which could have been consumed, or kept in idle deposits with banks are mobilized and redirected to promote business activity with benefits for several economic growth and higher productivity levels. FACILITATE COMPANY GROWTH:Companies view acquisitions as an opportunity to expand product lines,

increase distribution channels, hedge against volatility, increase its market share, or acquire other necessary business assets. A takeover bid or a merger agreement through the stock market is one of the simplest and most common ways to company growing by acquisition or fusion. REDISTRIBUTION OF WEALTH:By giving a wide spectrum of people a chance to buy shares and therefore become part-owners (shareholders) of profitable enterprises the stock market

helps to reduce large income inequalities .Both casual and professional stock investors through stock price rise and dividends get achance to share in the profits of promising business that were set up by other people.
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CORPORATE GOVERNANCE:By having a wide and varied scope of owners , companies generally tend to improve on their demands of management standards and efficiency in order to satisfy the these shareholders and the more stringent rules for public

corporations by public stock exchange and the government . Consequently , it is alleged that public companies (companies that are owned by shareholders who are members of the general public and trade shares on public exchange) tend to have better management records than privately-held companies (those companies

where shares are not publicly traded ,often owned by the company founders and / or their families and heirs , or otherwise by a small group of investors) . However some well-documented cases are known where it is alleged that their has been considerable slippage in corporate governance on the part of some public companies . CREATES INVESTMENT OPPORTUNITIES FOR SMALL INVESTORS:As opposed to their businesses that require huge capital outlay , investing in shares is open to both the large and small stock investors because a person buys the number of shares they can afford . Therefore the Stock Exchange provides an extra source of income to small savers. GOVERNMENT RAISES CAPITAL FOR DEVELOPMENT PROJECTS:Governments at various levels may decide to borrow money in order to finance infrastructure projects such as sewage and water treatment works or housing estates by selling another category of securities known as bonds .These bonds can be raised through the Stock Exchange whereby members of the public buy them , thus loaning money to the government . The issuance of such municipal bonds can
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obviate the need to directly tax the citizens in order to finance development , although by securing such bonds with the full faith and credit of the government instead of with collateral , the result is that the government must tax the citizens or otherwise raise additional funds to make any regular coupon payments and refund the principal when the bonds mature. BAROMETER OF THE ECONOMY:At the stock exchange , share prices rise and fall depending , largely , on market forces. Share prices rise tend to rise or remain stable when companies and the economy in general show signs of stability and growth .An economic recession , depression , or financial crisis could eventually lead to a stock market crash . Therefore the movement of the general tend in the economy .The listing requirements are the set of conditions imposed by a given stock exchange upon companies that want to be listed on that exchange. Such conditions sometimes include minimum number of shares outstanding , minimum market capitalization , and minimum annual income.

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Reliance Capital

Reliance Mutual fund

Reliance General Insurance

Reliance Life Insurance

Reliance Money

Reliance Consumer Finance

Mutual Fund Reliance money is a part of the reliance Anil Dhirubhai Ambani Group and is

promoted by Reliance capital, the fastest growing private sector financial services company in India, ranked amongst the top 3 private sector financial companies in terms of net worth. Reliance money is a comprehensive financial solution provider that enables you to carry out trading and investment activities in a secure, cost-effective and convenient manner. Through reliance money, you can invest in a wide range of asset classes from Equity, Equity and commodity Derivatives, Mutual Funds, insurance products, IPOs to availing services of Money Transfer & Money changing. Reliance Money offers the convenience of on-line and offline transactions through a variety of means, including its Portal, Call & Transact, Transaction Kiosks and at its network of affiliates.

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Some key steps of the company that are as..

Success is a journey, not a destination. If we look for examples to prove this


quote then we can find many but there is none like that of Reliance Money. The company which is today known as the largest financial service provider of India.

Success sutras of Reliance Money:The success story of the company is driven by 8 success sutras adopted by it namely

trust,

integrity, dedication, commitment, enterprise, hard work and team play, learning and innovation, empathy and humility.
These are the values that bind success with Reliance Money.

Vision of Reliance Money:To achieve & sustain market leadership, Reliance Money shall aim for complete customer satisfaction, by combining its human and technological resources, to provide world class quality services. In the process Reliance Money shall strive to meet and exceed customer's satisfaction and set industry standards.

Mission statement:Our mission is to be a leading and preferred service provider to our customers, and we aim to achieve this leadership position by building an innovative, enterprising , and technology driven organization which will set the highest standards of service and business ethics.

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EQUITY:Reliance Money offers its clients competitively priced Equity broking, PMS and Portfolio Advisory Services. Trading execution assistance provided to clients. In addition Reliance Money provides independent and unbiased view on markets along with trading strategies and entry / exit points for taking an informed decision. MUTUAL FUNDS:A mutual fund is a professionally managed fund of collective investments that collects money from many investors and puts it in stocks, bonds, short-term money market instruments, and/or other securities. Reliance Money offers dedicated research & expert advice on Mutual Funds. Mutual funds are considered to have low risk factors owing to diversification of assets into various sectors and scripts or instruments within. A mutual fund is a common pool of money into which investors place their contributions that are to be invested in acoordance with a stated objective.Then the ownership of the fund is just joint and mutual; the fund belongs to all investors.

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INSURANCE:LIFE-INSURANCE:Reliance Money assists its clients in choosing a customized plan which will secure the familys future and their expenses post-retirement. Clients can choose from different plans of almost all Insurance Companies where they can invest their money. Clients can choose from products and services that channelise their savings and protect their needs while guaranteeing security and returns for life. A team of experts will suggest the best Insurance scheme which suits the clients requirement. GENERAL INSURANCE:General Insurance is all about protecting against all kind of insurable risks. Reliance Money assists you in areas of Health insurance, Travel insurance, Home insurance and Motor insurance.
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INITIAL PUBLIC OFFERING IPO:Apply in Initial Public Offers (IPOs) without going through the hassles of filling ANY application form or paperwork.

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 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.

COMMODITIES:A single platform to trade on both the major commodity exchanges i.e. NCDEX and MCX. In addition In-house research desk shall provide research reports on all major commodities which shall enable in getting views for trading and diversify clients holdings. Trade Execution assistance is also provided to clients.

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DERIVATIVE:-

Dont dread derivatives anymore. Choose the contract and say go. For the first time track your positions online, in real time.

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. 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.

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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. ii. Call Option 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. 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.

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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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 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.

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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. 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 : 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. 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.

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2. Delivery trading: In this type of trading an investor buys the share for holding purposes. Delivery Traders are : Technical Traders: They believe that buying/selling signals are present within the graphs and charts of the stock. 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. 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.
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(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 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
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look towards the most economical rate of trading but rather work with a reputed organization like RELIANCE MONEY. DEPOSITORY: A depository is an organisation which holds securities of investors in electronic form at the request of the investors through a registered Depository Participant. It also provides services related to transactions in securities. In the Depository System, the securities of a shareholder are held in the electronic form by conversion of physical securities to electronic form through a process called 'dematerialization' (demat) of share certificates and facilitates transactions electronically without involving any share certificate or transfer deed. Depository system is playing a significant role in stock markets around the world and hence has become popular and prevalent in many advanced countries. In India the National Securities Depository Ltd. (NSDL), promoted by Industrial Development Bank of India, Unit Trust of India, and National Stock Exchange is the first depository. A second Depository by name Central Depository Services (India) Ltd, promoted by The Stock Exchange, Mumbai and Bank of India has been registered recently and will commence its operations shortly. Investors have choice of two depositories now National Securities Depository Limited (NSDL) and Central Depository Services (I) Limited (CDSL) Constituents of Depository system: Depository Depository Participants (DPs) Share Registrar/Issuers Investor

Clearing Corporation/Member
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ROLE OF DEPOSITORY:The Depository performs its functions through a network of Depository Participants (DPs) who interact with the Clearing Members and Investor. The Depository carries out following functions through its participants:

Enabling the surrender and withdrawal of securities through the process of demat and remat to and from the depository system,

Maintaining investors' holdings in the electronic form through computers, Effecting settlement of securities traded on the stock exchanges. 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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ROLE OF DEPOSITORY PARTICIPANTS: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.

Maintaining the securities account balances Enabling surrender (dematerialization) and withdrawal (rematerialisation) of securities to and from the depository.

Delivering and receiving shares. Keeping updated with regard to status of holdings periodically.

DP SERVICES:Depository Participant provides the following services: ACCOUNT OPENING:To utilize the services offered by a depository, any person having investment in any security or intending to invest in securities needs to have a demat account with a CDSLDP. This holder of such demat account is called as "Beneficial Owner (BO)". A BO can maintain a demat account with zero balance in such account. A BO can open more than one account with the same or multiple DPs, in the same name/s and order, if he/she desires so. The investor can approach any DP/s of his/her choice to open a demat account.

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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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D-MAT ACCOUNT OPENING:A demat account are opened on the same lines as that of a Bank Account. Prescribed Account opening forms are available with the DP, needs to be filled in. Standard Agreements are to be signed by the Client and the DP, which details the rights and obligations of both parties. Along with the form the client, requires to attach Photographs of Account holder, attested copies of proof of residence and proof of identity needs to be submitted along with the account opening form. In case of corporate clients, additional attachments required are - true copy of the resolution for Demat a/c opening along with signatories to operate the account and true copy of the Memorandum and Articles of Association is to be attached Reliance Money is a Participant of Central Depository Services Limited (CDSL). CDSL was promoted by Bombay Stock Exchange Limited (BSE) jointly with leading banks such as State Bank of India, Bank of India, Bank of Baroda, HDFC Bank, Standard Chartered Bank, and Union Bank of India and Centurion Bank. CDSL was set up with the objective of providing convenient, dependable and secure depository services at affordable cost to all market participants. D-Mat account opening process of Reliance Money is as follows.

D-MAT A/C PROVIDED BY RELIANCE MONEY:-

Reliance Money provide its customers with the D-Mat A/C, through which they can invest their money in any Financial Instrument like Equity, Derivatives, IPOs, Life Insurance , General Insurance etc. Reliance Money handles all the key financial transactions through this Single Window. D-Mat A/C is an account in which securities are kept in Electronic form.
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SCHEME:1. Cost of Having D-Mat A/C : Opening Charges: With reliance money the A/C opening charges are Rs.750. These charges are for life time. Annual Maintenance Charges: With Reliance Money the A.M.C. is just Rs.200 that is lowest in The Share Broking Industry. No brokerage and Service Charge: Reliance Money is the first and foremost company that charges Brokerage and Service charge 0.03 paisa on the Sale and Purchase of Security, otherwise the Industry wide Brokerage rate lies between 0.30 to 0.75 paisa on Delivery based Trading and 0.03 to 0.30 paisa on Intraday Trading.

2. Flat Fee Structure :

The current leaders in the retail broking segment like ICICI Direct, India Info line and India bulls offer a pay per use model where the customer pays a percentage of the amount transacted by him. Whereas Reliance Money, aims to tap investors in the smaller towns and cities through a flat fee structure instead of percentage or per transaction brokerage system.

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Flat Fee is charged based on the Turnover of an Investor. This model is as follows:
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

Flat Fee Scheme


FLAT FEE Rs.1000 TIME VALIDITY 2 Months TURNOVER VALIDITY Rs.1,00,00,000 TRADING LIMIT Delivery: 10 lacs Intraday: 90 lacs Rs.1350 6 Months Rs.3,00,00,000 Delivery: 30 laces Intraday: 2.7 Crore Rs.2500 12 Months Rs.6,00,00,000 Delivery: 60 lacs Intraday: 5.4 Crore

Special Scheme for Small Investors


FLAT FEE Rs.500 TIME VALIDITY 1 year TURNOVER VALIDITY Rs.5,00,000 TRADING LIMIT BOTH

Margin on Trading Amount:


DELIVERY BASED TRADING NIL INTRADAY TRADING 5 TIMES

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3. 3 -Tier Service : Reliance Money provides its customers with a three tier service i.e. interlinked D-Mat A/C, Trading A/C and Savings Bank A/C. This makes the customer free to trade online and makes the trading more hassle free. 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.
The All India Network of Associates on an assisted trade (through the Call

Centre or the network of associates) a charge of Rs.12 per executed trade will be applicable.

5. Safe: For Security Purpose, Reliance Money provides: User ID Password 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 account extra safe.

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6. Single Window access: Through Reliance Moneys associates customer can transact in : Equity Equity and Commodity Derivatives Mutual Funds IPOs Life Insurance General Insurance Money Transfer Money Changing Credit Cards amongst others. 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.
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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 Rent Agreement Telephone Bill (MTNL or BSNL) 3 Coloured Passport size photographs of the First Holder of Account, 1 Photograph of Second Holder (if any) and 1 photograph of Third Holder (if any). A Cheque (S/B) worth Rs.750 + (500, 1350, 2500). OPERATIONS:The various operations provided by Reliance money is as follows 1) Internet trading 2) Client Account Opening 3) Clearing And Settlement
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4) Capital gain on securities transaction 5) LevIies on securities transaction 6) Trading policy for employees

INTERNET TRADING: Client order is routed to exchange through brokers trading system. Client has real time market information. Client can monitor his position and can see profit and loss on line. Client has to have internet access to trade through our internet trading platform. Client can maintain secrecy of his transactions and portfolio. Client can access the trading system and put trade anywhere and anytime. Funds and securities are transferred online from client account to broker account and vice versa hence avoid manual work of cheque and DP slip. CLIENT ACCOUNT OPENING: Prospective client has to have three accounto Trading account o DP account and o Bank account with payment gateway bank DP account has to be with Reliance Capital Reliance Money has tie up with 3 banks.. HDFC,UTI and IDBI Separate KYC for Equity,Fx and commodities Receipt of KYC by branch from DSA/Sales Executives Checking of KYC Cheque deposit in our designed bank Dispatch of KYC to CBO on daily basis through DTDC courier only CBO process the client information, generate customer ID, trading account, DP account and password.
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Who can open a trading account? Individual HUF NRI Corporate Proprietorship-Only Trading Account

CLEARING AND SETTLEMENT: Clearing: A process to find out how much and who has brought or sold securities through our broking platform How much money is to be paid or is to be received to/from clients and exchange How much securities is to be delivered or to be received to/from clients and exchange Settlement is pay of funds and securities from the clients and then to the exchange Pay out of funds and securities from the exchange and to clients. 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: 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. Securities should be old through recognized stock exchange and subject to securities transaction tax. Short term capital loss can be sent off against short term capital gain.

LONG 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.

LEVIES ON SECURITIES TRANSACTION: Service tax: 12% of brokerage Education cess:2% of service tax STT : 125% of delivery value 0.025% of trading one side (sale) 0.017% of trade for F& O (sale) Stamp duty : 0.01% on delivery transaction 0.002% on trading F & O EMPLOYEES TRADE POLICY: Objective: Inside information , diversion Applicability: Employee and dependent. Exempted transaction: IPO, MF, Bonds, and PF.
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Approval: HOD, Compliance officer. Securities holding period: 3 days and 30 days. Restricted transaction: Group Company. Disclosure: Joining time and every year 31st march.

ACCOUNT OPENING PROCESS:The account opening process followed at Reliance Money is as follows

Accept application forms Process Document checking Verification Rectification of errors

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.
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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. The documentation is completed Then the franking and stamping is done by fixing the different stamps of the DP.

Once the team finds the process completed then the form is sent for scanning otherwise the forms are sent back to the branches for rectification. 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. CHECKER: (PROCESS FOR CHECKING THE DETAILS) There are 3 to 4 persons who again check the entries done in DMS and if any rejection is found then again it is send back to the DMS and if no rejections found then it is send for further processing that is pan validation.

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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.

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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ACCOUNT OPENING FLOW CHART


FRANCHISEE REMISSAR BDE RO

BRANCH

Processing house Mumbai

If any rejection found send back to BRANCH

Application inward

Entry

Scrutiny If not then send it for further processing Scanning If any rejections found send back to DMS

DMS If not then send it for further processing Checker

PAN validation

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Working of Reliance money


At the Macro Level

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HIERARCHY IN RELIANCE MONEY

EXECUTIVE DIRECTOR

CHIEF EXECUTIVE OFFICER

HEAD OF SALES

ZONAL HEAD

REGIONAL HEAD

BRANCH HEAD

CSE / CM / RM
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COMPETITORS 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 :

Account opening fees : Rs 750/- (One time non-refundable) Brokerage : Brokerage of ICICI Direct varies on volume of trade and inclusive of demat transaction charges, service taxes and courier charges for contract notes. It ranges from 0.1% to 0.15% for margin trades and 0.4% to 0.85% on delivery based trades.

ADVANTAGES OF ICICI DIRECT: 3-in-1 account integrates your banking, broking and demat accounts. All accounts are from ICICI and very well integrated. 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.

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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: multiple watch lists, Integrated Banking, demat and digital contracts, Real-time portfolio tracking with price alerts and Instant credit & transfer. Online trading account for investing in Equities and Derivatives Free trading through Phone (Dial-n-Trade) Two dedicated numbers for placing your orders with your cellphone or landline. Automtic funds tranfer with phone banking (for Citibank and HDFC bank customers) Simple and Secure Interactive Voice Response based system for authentication Get the trusted, professional advice of our telebrokers Integration of: Online trading + Bank + Demat account Instant cash transfer facility against purchase & sale of shares IPO investments Instant order and trade confirmations by e-mail Single screen interface for cash and derivatives

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DIAL-N-TRADE Toll Free The DNT is a value added services meant for all customers who want to transact but are not online.

ONLINE ACCOUNT TYPES: Classic Account / Applet : Investor in equities. SpeedTrade: Trader in equities & derivatives.

INDIVIDUAL CLIENT:Demat A/c + Trading A/c opening charges:There is two type of account(a) Classic A/c opening charges- Rs 750/-. (b) Speed trade A/c opening charges- Rs 1000/-.

(Rs 500/- per month of speed trade A/c. If Brokerage is Rs 1500/- of 3 month then RS 500/- will be off and if not then Rs1500/- and brokerage will charged

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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. Address proof - copy of driving license or passport or ration card or voter card or telephone bill or electricity bill or bank statement.

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BROKERAGE AND FEES :Account opening fees : Rs 1200/- (One time non-refundable) as below: 250/- Equity Trading Account opening charge 200/- Demat Account opening charge 750/- Software charges BROKERAGE:For intraday trading- .02 - .05% For Delivery trading- 0.25 - 0.50% (Brokerage is negotiable and it based on the volume of client) ADVANTAGES OF INDIABULLS EQUITY TRADING ACCOUNT : Brokerage is less compare to other online trading companies. Provide trading terminal powerbulls, a java based software. Its very fast in

terms of speed and execution. Power Indiabulls trading terminal is the most advanced new generation trading platform with great speed.
Power Indiabulls is extremely reach in features including

Live Streaming Quotes Fast Order Entry and execution Tic by Tic Live Charts Technical Analysis Live News and Alerts, Extensive Reports for Real-time Accounting.

DISADVANTAGES OF INDIABULLS EQUITY TRADING ACCOUNT : Need a HDFC account for instant transfer. Cannot Apply IPO.
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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.

PRICING FOR RETAIL CLIENTS:Investor Terminal Account Opening : Rs 500 Demat 1st Yr : Rs 250 Initial Margin : Rs 2500(Compulsory) Min Margin Retainable : Rs 1000 Brokerage : Intraday 0.10% each side + ST Delivery 0.50% each side + ST PRICING FOR CLIENTS Trader Terminal Account Opening : Rs 500 Demat 1st Yr : Rs 250 Initial Margin : Rs 5000(Compulsory) Min Margin Retainable : Rs 1000

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BROKERAGE :Intraday 0.10% each side + ST Delivery 0.50% each side + ST ( Negotiable to 0.05% each side & 0.25%)

ACCOUNT ACCESS CHARGES:Monthly Rs 800, adjustable against Brokerage. Yearly Rs 8000, adjustable against brokerage. TRADING TERMINALS AVAILABLE: Investor Terminal (IT) Investor Terminal is 5Paisas equity trading terminal for low volume trader. This is web based terminal and could access from anywhere. This product provides limited features in comparison of Trader Terminal, which is another product provided by 5Paisa. Trader Terminal (TT) Trader Terminal is for high volume equity traders. Trader Terminal provides high volume trading with powerful interface and fast order execution. ADVANTAGES OF 5PAISA TRADING TERMINALS:

Very fast execution speed.

DISADVANTAGES OF 5PAISA TRADING TERMINALS:

No intra-day tick by tick charts in Investor Terminal (IT). Learning 5paisa Trading Terminal is little hard.
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MOTILAL OSWAL: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.

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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, 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.

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ONLINE ACCOUNT TYPE:HDFC Online Trading A/c: Plain Vanilla Account with focus on 3 in 1 advantage.

PRICING OF HDFC ACCOUNT:A/c Opening: Rs 750/1000/- for non HDFC Bank customers (AQB) BROKERAGE:Trading 0.15%* each side + ST. Delivery 0.50%** each side + ST. Demat: Nil, 1st year charges included in Account Opening. Initial Margin: Rs 5000* Rs 25 Min Brokerage per transaction. Rs 8 Min brokerage per transaction. Note: HDFC Bank savings account required a quarterly minimum balance of Rs. 2,500/-. If you already have Saving account or DP account with HDFC, you could link them with trading account. PRICING OF KOTAK :Account Opening :Rs 500/Demat: Rs 22.5 p.m. Initial Margin : Rs 5000/- (Compulsory) Min. Margin Retainable : Rs 100/-

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BROKERAGE SLAB WISE :Higher the volume, lower the brokerage. Even older customers (on 0.25% & 0.40%) have been moved to the slab wise structure. For intraday trading- .05%. For Delivery trading- .50%. (Brokerage is negotiable and it based on the volume of client). EXPOSURE:For intraday trading - 5 10 times. For delivery trading - 2 times. FUNDING:Interest rate is 19% per month for funding.

COMPARATIVE STUDY
ONLINE BROKER Reliance Money ICICI Direct Share Khan India Bulls 5 paisa. Com Motilal Oswal HDFC A/C OPENING CHARGE 750 ANNUAL MAINTENANCE CHARGE 200 BROKERAGE (DELIVERY) 0.30% BROKERAGE (INTRADAY) 0.03% MARGIN (DELIVERY) DEPOSITED AMOUNT DEPOSITED AMOUNT 4 TIMES MARGIN (INTRADAY) 5 TIMES

750

250

0.75 %

0.05 %

8 TIMES

750

300

0.40 %

0.05 %

8 TIMES

900

NONE

0.40 %

0.05 %

4 TIMES

TIMES

550

NONE

0.25 %

0.05 %

2-4 TIMES

6-8 TIMES

450

250

0.35 %

0.05 %

2-4 TIMES

10 TIMES

799

300

0.45 %

0.10 %

DEPOSITED AMOUNT

DEPOSITED AMOUNT

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SWOT ANALYSIS
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. SWOT ANALYSIS OF RELIANCE MONEY STRENGTHS:-

Price competitiveness ( E.g.: No brokerage is charged, Annual maintenance charges are least)

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

Their lead consultant has strong reputation within the market They change direction quickly if our approach isnt working Management philosophy and commitment to maximize shareholders returns of Reliance Money.

Ongoing activities of the company to support up gradation of operational performance and rise in productivity. Team of talented and committed professionals available to improve companys performance.
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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. The competitors may be slow to adopt new technologies.

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. Constant pressure to be cost competitive to meet customer expectations. Relentless pressure to maintain profitability due to rising input/raw material prices. 2.5.2

OVERSEAS BRANCHES OF RELIANCE MONEY Hong kong Malaysia Muscat Nigeria

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Chapter 2 Objectives & Research Methodologies

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OBJECTIVES OF THE STUDY It is said that an objective well defined is half done. Thus in order to make sure that the proper survey ensures defining clear-cut objective and outline is a prerequisite. Objective serves as torchlight in a project. It lays down a well-defined path between start and the end and that is the goal. As also an objective is well defined and it is important for the research study that a scholar undergoes. It is an action, a purpose, which is directed to a person to conduct a study. It represents a fact having actual existence of outside the mind or a goal for which the study is to be conducted. THE OBJECTIVE OF OUR STUDY IS:1) Compare the services of Reliance Money with its competitors. 2) To collect the real time information about preference level of customers using Demat account and their inclination toward s various other brokerage firms e.g. Indiabulls, Sharekhan, Indiainfoline, Religare, etc. 3) To know the various functions which are conducted for day-to-day operations in RELIANCE MONEY. 4) To know the various norms adopted by RELIANCE MONEY. 5) To know the various products and services rendered to its customers. 6) To know whether the services provided by RELIANCE MONEY is able to attain its customers satisfaction or not. 7) To find and try to bridge the gap between the expectations and experiences of the customers in case of dissatisfaction. 8) To know how the branch functions in terms of sales and operations. 9) To market and to promote the products of RELIANCE MONEY. 10) To generate new business opportunities for RELIANCE MONEY by opening up franchisees.
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METHODOLOGY: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

1.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.

2.SECONDARY SOURCES:The secondary data, I have collected from the various websites of reliance money, various journals, magazines etc.

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The methodology adopted in the procedure followed in order to give the projects its shape is: Having a proper understanding of working of a financial company. Inquiring and looking into the practicalities of work environment to have a correct insight of process adopted. Gaining information from files, documents, folders and soft copy stored in system. Seeking information from the staff and taking their views in consideration. Browsing the website of various financial institutions and BSE and NSE for the necessary information required. Finally compiling the primary and secondary data gathered, then making a study of option available.

SAMPLING:SAMPLING PROCEDURE-: The sample is selected in a random way, irrespective of them being investor or not or availing the services or not. It was collected through mails and personal visits to the known persons, by formal and informal talks and through filling up the questionnaire prepared. SAMPLE SIZE:The sample size of my project is limited to 50 only. SAMPLE DESIGN:Data has been presented with the help of pie charts.

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Chapter 3 FINDINGS & INTERPRETATION

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FINDINGS:1. Preference of Investment

Fig.1 Result of Preference of Investment


Interpretation: This shows that although the mutual funds market is on the rise yet, the most favored investment continues to be in the Share Market. So, with a more transparent system, investment in the Stock Market can definitely be increased. 2. Awareness on Online Share Trading

Fig. 2 Result of Awareness of Online Share Trading

Interpretation: With the increase in cyber education, the awareness towards online share trading has increased by leaps and bounds. This awareness is expected to increase further with the increase in Internet education.

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3. Preference of investing in stock market

INTERPRETATION: The study shows that most of the people prefer to invest in stock market because of high risk and high return whereas some other try to capture the short term gain from investment. But a very few section of people invest because of the benefits they gain in tax.

4. Awareness of Reliance Money as a Brand

Fig.4 Result of Awareness of Reliance money as a Brand


Interpretation:This pie-chart shows that reliance money has a reasonable amount of Brand awareness in terms of a premier Retail stock broking company. This brand image should be further leveraged by the company to increase its market share over its competitors.
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5. Awareness of Reliance Money Facilities

Fig .5 Result of Awareness of Reliance money Facilities


Interpretation: Although there is sufficiently high brand equity among the target audience yet, it is to be noted that the customers are not aware of the facilities provided by the company meaning thereby, that, the company should concentrate more towards promotional tools and increase its focus on product awareness rather than brand awareness.

6.Customers having Demat account in companies

Fig.6 Result of Customers having Demat account in companies


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7. Satisfaction Level among Customers with current broker

Fig7 Result of satisfaction level among customers with current broker

Interpretation: This pie-chart corroborate the fact that Strategic marketing, today, has gone beyond only meeting Sales targets and generating profit volumes. It shows that all the competitors are striving hard not only to woo the customers but also to make them Brand loyal by generating customer satisfaction.

8. Frequency of Trading

Fig8 Result of Frequency of Trading

Interpretation: Inspite of the huge returns that the share market promises, we see that there is still a dearth of active traders and investors. This is because of the non transparent structure of the Indian share market and the skepticism of the target audience that is generated by the volatility of the stock market. It requires efficient bureaucratic intervention on the part of the Government.

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9.Percentage of earnings invested in Share Trading

Fig9. Result of percentage of earning invested in share trading


Interpretation: This shows that people invest only upto 10% of their earnings in the stock market, again reiterating the volatile and non-transparent structure of the Indian stock market. Hence, effective and efficient steps should be undertaken to woo the customers to invest more in the lucrative stock market.

10. Rating of share trading companies

60
50 40 50 50

40

40

40 30

40

30 20 10 0 10 Reliance money 10 40
50 ICICI dirct

20 10 kotak mahindra 30 30
40
Medium High

others

lower
Medium

20 40
40
lower

50 40
10

High

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11.Problems faced during trading

INTERPRETATION: The most common problem faced by people during trading is the information related problem i.e, they dont get the required information about trading either online or offline.Whereas some other problems are also there like network problem,inmanual operating problem and service provider problem.

12. Describe yourself as a

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INTERPRETATION: From the above graph I found that most of customer are mostly risk taker and price conscious and least number of customer are quality conscious and variety seeker. It suggests that the customer are ready to invest money in equity and commodity market which is more risky than mutual fund.

13.Rating of products of Reliance M oney

INTERPRETATION:About 20% of the people rated the products of reliance money as excellent whereas 50% rated it as good. While some others rated it as average and a very small portion of people rated it as poor.

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14.Suggestions

INTERPRETATION:Most of the people suggested reliance money to broaden their network so that it will be available to a large number of people. Some others suggested on improving the customer service whereas others laid emphasis on technical improvement.

15. Customer status

INTERPRETATION:

Most

of

the

people

who

were

surveyed

are

businessman,10% are students,14% are service holder and rest 16% are exserviceman.
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LEARNINGS: To get initial success in this field is very difficult. Althoug h the business generation becomes easier with time as we serve more people who then get added up in the loyal clientage. Thus time and service are two most factors to get in this field. Also the corporate remains a very important segment which gets business in bulk but retail cannot be ignored which makes your business ticking. Customer remains in the pivotal position. I also came to know the various work culture rules and ethics that are required to be followed in the organization. I also learnt to analyze and interpret data by working on this project.

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Chapter 4 Conclusions and Recommendations

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CONCLUSIONS:Based on the above SWOT analysis and study of the available data I have come to the following conclusions: All though relatively new entrants in the market, Reliance is slowly but surely gaining a strong hold because it is finally able to grasp the investment climate in Delhi. Secondly the branch managers at all the branches are very knowledgeable with a lot of experience in the financial markets so under their leadership can definitely expand its base. The entire workforce consists of mostly youngsters, which means they can be encouraged and motivated to do good work because they have a long way to go and most of them are eager to climb the ladder. Right now Reliance is at its nascent stage and will surely grab the major market under its belt very soon like in other fields. Positioning of Reliance Money is good as it is one of the biggest industrial houses in India. People are aware about services provided by reliance money. Still there is enough scope for improvement in positioning and building good customer relationship.

Reliance money used different types of advertising media which is effective and able to attract different types of customers.

There is scope to target those respondents who are not invested in any option; they should be communicated, convinced and converted in to potential customer.

Awareness level of respondents in investment option is very low. There should be campaign to create awareness in investors.

There is lack of trust over fund managers in investors. There is need to communicate with investor to built confidence in investors

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RECOMMENDATIONS:Based on the findings of our project we would like to suggest the following: After sales services and follow up calls are important for getting new references so trained telesales should be appointed for this purpose whose sole work should be to make feedback calls. Reliance is having too many financial products right from Demat account to General Insurance and not all the salespeople are familiar with each and every product so the work force should be segregated each group dealing in a specific product and the sales target should be given likewise. While interacting with the investors I found that most of the customers are unaware about the Mutual fund. Some of the people look upon mutual funds and equity trading as gambling. Thus a mutual fund awareness program can help to increase the penetration of mutual funds in the market. Reliance should declare in black ink that they will charge just 1 paisa per transaction. People tend to think that there must be some hidden charges. Rs750 account opening charges are too high when targeting a corporate so the company should be flexible on this amount. Reliance should provide periodic training for updating the product knowledge of various financial advisors. Company should have a scheme of rewards and recognition to employees and the field persons to boost their motivation.

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Chapter 5 Limitations of Study

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LIMITATIONS:1. COLD CALLING Voice and accent plays a major role. The right time to call a customer cannot be decided, as the customer may in a different mood at the time of calling. Time consuming Less success rate Time consuming

2.OTHERS The study was restricted to Reliance Money Limited to only in Ahmedabad. The study is conducted with the data available and the analysis was made accordingly. It was tough to get all relevant facts from the personnel and employees concerned due to some secret document not provided by the business organization, which is inherent in an industry. 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. Time factor was a limitation as only a stipulated period had been ascertained to me while the personnel had little time to my queries due to their daily busy schedule. It is not feasible to compare all the products of various brokerage firm.

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Chapter 6 Bibliography & APPENDIX

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BIBLIOGRAPHY Agarwal, J.D. "Security Analysis & Portfolio Management: A Review, Finance India, Vol. II No. 1, March 1989. Bhatt, V. V. "An Appraisal Of Some Recent Estimates Of Savings and Investments", ICRNI, Vol. 5, 1963. Douglas A. Hayes and W. Scott Bauman "Investments: Analysis and Management" III Ed., 1976, MacMillan Malhotra, Naresh "Marketing Research and Applied Orientation" IV Ed., 2005, Pearson

WEBLIOGRAPHY www.mutualfundsindia.com www.easymf.com www.amfiindia.com www.google.com www.moneycontrol.com www.valueresearchonline.com www.bseindia.com www.reliancemoney.com www.relianceadagroup.com www.reliancecapital.co.in www.karmyoga.org

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APPENDIX

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Questionnaire
QUESTIONNAIRE Q1. In which of these financial instruments do you invest into? Shares Mutual Funds Bonds Derivatives

Q2. Are you aware of online Share trading? Yes No

Q3. Heard about Reliance money? Yes No

Q4. Do you know about the facilities provided by Reliance money? Yes No

Q5. With which company do you have your DEMAT account? Reliance money ICICI Direct Kotak Mahindra India Bulls

Others (please specify) Q6. What differentiates your Share trading company from others? (in regards of brokerage, satisfaction, services, products )

Q7. Are you currently satisfied with your Share trading company? Yes No

Q8. How often do you trade? Daily Weekly Monthly Yearly


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Q9. What percentage of your earnings do you invest in share trading? Up to 10% Up to 25% Up to 50% Above 50%

Q13. How do you rate these share trading companies? 1. 4. 2. 5. 3.

a. Reliance money b. ICICI Direct c. India Bulls d. Kotak Mahindra e. Others (Please specify)

Q14. What more facilities do you think you require with your DEMAT account?

Personal Information

Name: Age: Sex: Phone No: Occupation: Male Female

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