AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

Summer Internship Project Report

0n
MARKETING OF FINANCIAL SERVICES PRODUCTS [RELIGARE SECURITIES LTD.]
In partial fulfillment of Summer Training for M.B.A Program ( 2010-2012} SUBMITT
ED BY: TUSHAR PATEL ROLL NO: (60) MBA 2009 -2011
SUBMITTED TO: PROF KALIKA BANSAL
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ACKNOWLEDGEMENT I am thankful to the management of Religare securities limited f
or permitting me to go through my summer training. First and fore most I would l
ike to thank my company guide Mr. chintan shah ( sales manager) for his constant
encouragement, guidance and advice at every stage of my training. This project
would not have been successfully completed without his great support. I am very
much thankful to my college for their excellent guidance, support and appreciati
on and he also provided me with this great opportunity to work in such a reputed
organization. I express my sincere thanks to Prof. Kalika Bansal, Amity Global
Business School, Ahmadabad who helped me in understanding the project and the im
plementation of the same. Her suggestions really helped me think on a broad pers
pective and give me motivation to do my best. I would also like to thank Amity,
Ahmadabad for helping and supporting me for my Summer Internship Program at RELI
GARE SECURITIES LIMITED.
Date: Place: - Ahmadabad PATEL TUSHAR
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

PREFACE Indian Stock market is considered to be the one of the fastest growing a
s well as most volatile market in the world. Sensex and Nifty has touched all ti
me high and created history. There are many factors which contributes such a dra
stic change in the stock market. We can divide these factors in mainly three cat
egories like economic factors (These factors effect economy as a whole), industr
y specific factors (Such factors related to the any industry specific event that
can affect industry as a whole) and company specific factors (These factors inc
ludes any such event or news about the company which could affect its share pric
e). During recent times many corporate actions has taken place which have substa
ntially affect the individual share price of the company. The actions taken by t
he company is known as event. Such event includes Dividend Distribution, Bonus I
ssue, Right Issue, Mergers & Acquisitions, and Stock Split etc. Event studies ex
amine the behavior of firms stock prices around corporate events. A vast literatu
re written over the past several decades has become an important part of financi
al economics. Prior to that time, the usefulness of event studies arises from th
e fact that the magnitude of abnormal performance at the time of an event provid
es a measure of the (unanticipated) impact of this type of event on the wealth o
f the firms claimholders. Thus, event study provides evidence relevant for unders
tanding corporate policy decisions. In this research report we try to study one
of such corporate event and fry to find out its impact on that company and inves
tors.
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

CERTIFICATE
This is to certify that Mr. TUSHAR PATEL, M.B.A student of Amity Global Business
School, Ahmedabad has done research project on the topic MARKETING OF FINANCIAL
SERVICES PRODUCT [RELIGARE SECURITIES LTD.] He successfully
completed his project under my guidance. This project certifies the work of the
candidate based on actual survey of the concerned project.
Date: Place: Ahmedabad
Prof. Kalika Bansal
(Faculty Guide)
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EXECUTIVE SUMMARY This project has been a great learning experience for me; at t
he same time it gave me enough scope to implement our analytical ability. This p
roject as a whole can be divided into two parts:
The first part gives an insight
about the importance of Demat account which is necessary for dealing in stock m
arket. This part shows that the charges (Brokerage plans) for trading in the Rel
igare securities limited. There are various schemes in this company according to
the clients portfolio. This part is also include the comparative study of charge
s in other organization with respect to this company.
However, the second part g
ives an insight about the importance of Fundamental analysis in the broking indu
stry. It is also based on whatever I learned at collage and also I have gathered
all information through internet. In narrow sense the fundamental analysis is m
ore concern with such specific factors such as intrinsic value of the firm, etc.
fundamental analysis is also a part of equity analysis which is generally done
by the fund managers or institutional & professional advisors before they invest
or gives the advice for investing in such stocks. Lastly the third part gives a
n insight about the importance of Technical analysis in the broking industry. It
is purely based on whatever I learned at collage and also I have gathered all i
nformation through internet. In narrow sense these attitudes are related to the
role under condition with such specific factors such as trend, or price & chart
patterns, etc. Technical analysis is a part of equity analysis which is generall
y done by the fund managers or institutional & professional advisors before they
invest or gives the advice for investing in such stocks
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CONTENT
NO.
1. 2. 3.
TITLE
ACKNOWLEDGEMENT PREFACE BODY REPORT Executive summery
Pg. No.
2 3
Introduction of the company
Research design Objective of the study Data collection 4. GROUP COMPANIES featur
es Key events and milestones Vision and mission Types of accounts
7 8 8 13 18 22 23 28 33 37 38 43
5.
INTRODUCTION TO COMMODITY MARKETS History of commodity trading Leading commoditi
es market in india
6.
TYPES OF SHARES TRADING
7.
DATA ANALYSIS AND INTERPRETATION
8. 9. 10.
FINDINGS AND CONCLUSION APPENDIX
BIBLIOGRAPHY
60 61 66
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Introduction of the company Religare is a global financial services group with a
presence across Asia, Africa, Middle East, Europe and the Americas. Religare is
promoted by the promoters of Ranbaxy pharmaceuticals Limited. In India, Religar
es largest market, the group offers a wide array of products and services ranging
from insurance, asset management, broking and lending solutions to investment b
anking and wealth management. The group has also pioneered the concept of invest
ments in alternative asset classes such as arts and films. With over 10,000 empl
oyees across multiple geographies, Religare serves over a million clients, inclu
ding corporate and institutions, high net worth families and individuals, and re
tail investors. Religare operate from six regional offices and 25 sub-regional o
ffices and have a presence in 330 cities and towns controlling 979 locations whi
ch are managed either directly by Religare or by our Business Associates all ove
r India, the company have a representative office in London. While the majority
of Religare offices provide the full complement of its services yet it has dedic
ated offices for investment banking, institutional brokerage, portfolio manageme
nt services and priority client services. As on date the Company is empanelled w
ith UTI, IDBI, IFCI, SBI, BOI-MF, Punjab National Bank, PNB-MF, Oriental Insuran
ce, GIC, UTI-Offshore, ICICI Can bank MF, Punjab & Sind Bank, Pioneer ITI, SUN F
&C, IDBI Principal, Prudential ICICI, ING Baring and J M Mutual Fund. RELIGARE w
as founded with the vision of providing integrated financial care driven by the
relationship of trust. The bouquet of services offered by RELIGARE includes Brok
ing (Stocks and Commodities), Depository Participant Service, Advisory on Mutual
Fund Investments and Portfolio Management Services.
RELIGARE is a pioneer in the concept of partnership to reach multiple locations
in order to effectively service its large base of individual clients. Besides th
e reach of RELIGARE, the clients of the company greatly benefit by its strong re
search capability, which encompasses fundamentals as well as technical knowledge
.
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RESEARCH DESIGN
TITLE OF THE STUDY
MARKETING of FINANCIAL SERVICES PRODUCTS [ RELIGARE SECURITIES LTD. ]
OBJECTIVES OF THE STUDY:
Getting a knowledge about a demat account , trading account ,commodity ,equity ,
Insurance plus investments.
How to earn profit in positive and negative markets?
To Study how to build a relationship marketing in Capital Market.?
To study var
ious financial products like Equity, Mutual Funds, Commodity& Portfolio manageme
nt services. To Study the various services provided by Broker house to there cli
ents.
To study what other services investors expect from their broker house.
DATA COLLECTION
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Primary data
Collected through Structured Questionnaire. Secondary data
We had a
lso made phone calls to the client to get accurate information for their investm
ent. Another method to get the information was a direct approach in which we app
roached the clients and got a direct response from them.
Discussions with the co
ncerned by personal interview LIMITATIONS
Client does not proper answer about an
opening account Compare our product with other company product
Fake lead is to
be generated
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Activities of Religare Enterprises Limited
Religare Securities Limited Equity Broking Online Investment Portal Portfolio Ma
nagement Services Depository Services
Religare Finvest Limited Lending and Distribution business Proposed Custodial bu
siness
Religare Insurance Broking Limited Life Insurance
Religare Commodities Limited Commodity Broking
General Insurance Reinsurance
Religare Capital Markets Limited Investment Banking Proposed Institutional Broki
ng
Religare Arts Initiative Limited Business of Art Gallery launched - arts-i
Religare Realty Limited In house Real Estate Management Company Religare Hichens
Harrison** Corporate Broking Institutional Broking Derivatives Sales Corporate
Finance
Religare Venture Capital Limited Private Equity and Investment Manager
Religare Asset Management*
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD Name

Religare is a Latin word that translates as 'to bind together'. This name has be
en chosen to reflect the integrated nature of the financial services the company
offers.
Symbol
The Religare name is paired with the symbol of a four-leaf clover. Traditionally
, it is considered good fortune to find a four-leaf clover as there is only one
four-leaf clover for every 10,000 three-leaf clovers found. For us, each leaf of
the clover has a special meaning. It is a symbol of Hope. Trust. Care. Good For
tune. For the world, it is the symbol of Religare.
For us, each leaf of the clover has a special meaning. It is a symbol of Hope. T
rust. Care. Good Fortune. For the world, it is the symbol of Religare.
The first leaf of the clover represents Hope. The aspirations to succeed. The dr
eam of becoming. Of new possibilities. It is the beginning of every step and the
foundation on which a person reaches for the stars. The second leaf of the clov
er represents Trust. The ability to place ones own faith in another. To have a re
lationship as partners in a team. To accomplish a given goal with the balance th
at brings satisfaction to all, not in the binding, but in the bond that is built
. The third leaf of the clover represents Care. The secret ingredient that is th
e cement in every relationship. The truth of feeling that underlines sincerity a
nd the triumph of diligence in every aspect. From it springs true warmth of serv
ice and the ability to adapt to evolving environments with consideration to all.
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The fourth and final leaf of the clover represents Good Fortune. Signifying that
rare ability to meld opportunity and planning with circumstance to generate tho
se often looked for remunerative moments of success. Hope. Trust. Care. Good For
tune. All elements perfectly combine in the emblematic and rare, four-leaf clove
r to visually symbolize the values that bind together and form the core of the R
eligare vision.
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INTRODUCTION
Religare Securities Ltd
Religare Finvest Ltd
Religare Wealth Management Services Ltd
Religare Commodities Ltd
Religare Capital Markets Ltd
RELIGARE ENTERPRISE LTD.
Religare Insurance Broking Ltd
Religare Finance Ltd
Religare Venture Capital Pvt Ltd
Religare Realty Ltd
GROUP COMPANIES
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Religare Enterprises Limited group comprises of Religare Securities Limited, Rel
igare Commodities Limited, Religare Finvest Limited and Religare Insurance Broki
ng Limited which deal in equity, commodity and financial services business. 1. R
eligare Securities Limited RSL is one of the leading broking houses of India and
are dealing into Equity Broking, Depository Services, Portfolio Management Serv
ices, Internet Trading, Institutional Equity Brokerage & Research, Investment Ba
nking, Merchant Banking and Corporate Finance. To facilitate free and fare tradi
ng process Religare is a member of major financial institutions like, National S
tock Exchange of India, Bombay Stock Exchange of India, Depository Participant w
ith National Securities Depository Limited and Central Depository Services (I) L
imited, and a SEBI approved Portfolio Manager. RSL serves a platform to all segm
ents of investors to avail the opportunities offered by investing in Indian equi
ties either on their own or through managed funds in Portfolio Management
2. Religare Commodities Limited Religare is a member of NCDEX and MCX and provid
es platform for trading in commodities, 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 market in India. With this realization, Religare Commodities
is coming up with its branches at mandi locations. It is a flagship effort from
our team which would be helpful in facilitating trade and speculating price of
commodities in future.
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3. Religare Finvest Religare Finvest Limited (RFL), a Non Banking Finance Compan
y (NBFC) is aggressively making a name in the Financial services arena in India.
In a fast paced, constantly changing dynamic business environment, RFL has deli
vered the most competitive products and services. RFL is primarily engaged in th
e business of providing finance against securities in the secondary market. It a
lso provides finance for application in Initial Public Offers to nonretail clien
ts in the primary market . RFL is also planning to initiate personal loan portfo
lio as fund based activity and mutual fund distribution as fee based activities.
Along with this, the company also undertakes non-fund based advisory operations
in the field of Corporate Financing in the nature of Credit Syndication which i
ncludes inter alias, bills discounting, inter corporate deposit, working capital
loan syndication, placement of private equity and other structured products. 4.
Religare Insurance Broking Ltd. Religare has been taking care of financial serv
ices for long but there was a missing link. Financial planning is incomplete wit
hout protective measure i.e. structured products to take care of event of things
that may go wrong Religare Insurance Broking Limited. As composite insurance br
oker, deals in both insurance and reinsurance, providing our clients risk transf
er solutions on life and nonlife sides. This service will take benefit of Religa
res vast business empire spread throughout the country -- providing our valued cl
ients insurance services across India. We aim to have a wide reach with our serv
ices literally! Thats why we are catering the insurance requirements of both reta
il and corporate segments with products of all the insurance companies on life a
nd non-life Still, there is more in store. We also cater
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

individuals with a complete suite of insurance solutions, both life and general
to mitigate risks to life and assets through our existing network side. For corp
orate clients, we will be offering value based customized solutions to cover all
risks, which their business is exposed to. Our clients will be supported by an
operations team equipped with the best of technology support Religare Insurance
Broking aims to provide neutral, transparent and professional risk transfer advi
ce to become the first choice of India
Why customer trade with Religare? 1. Personal Assistance Dedicated dealers for f
acilitating trading and post trade needs. Dedicated Relationship Managers for as
sisting multiple investments needs.
2. Research & Advisory Regular news and updates on market Research service over
SMS to keep one Daily and weekly technical reports A complete information report
on results and performance individual companies. Complete reports on various ec
onomic sectors and their performance along with analysis of few major companies
in that sector Trading calls in Futures & Options Daily capsule of Market indice
s and index movement, national and international corporate news, and their perfo
rmance along with forth coming IPO tracker.
3. Add-Ons
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Access to all your accounts through your Customer Relationship Number (CRN) Acce
ss your ledger balances and account information over internet, branch and call c
enter
Interest on Cash Margin Even while you are waiting to make your next trade or on
line investment, your unutilized cash does not lie idle with us. You earn intere
st on your unutilized cash margin. 360 degree Investment Portal Invest online in
Equities, Commodities, Currency, IPO and Mutual Funds in a single platform and
maintain all your financial records at one place. Now, you can also file your ta
x and book air tickets, make hotel reservations and buy attractive holiday packa
ges, all online. So get empowered, enrich your experience of investing online an
d open yourself to a whole new world of possibilities for Religare Online will b
ecome Your World Online, beyond investments!
Exposure upto 20 times* on your margin Allowing you the freedom to trade without
hassles throughout the day without having to worry about your cash margin. You
can get exposure (on cash segment) as high as 20 times for intraday trades.
FEATURES
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1. What is Trade Rewards ? Trade Rewards* is a unique offering from Religare that
gives you dual benefit of a hassle free investment experience on the net as well
as an opportunity to earn while you invest with us.
So earn reward points each time you trade in Equities, Commodities & Currency De
rivatives or invest in your favorite IPOs online with us through highly sophisti
cated and customized trading platform R-ACE (Religare Advanced Client Engine)
2. How are reward points calculated? You will earn reward points as you trade/in
vest using Religares online trading platform R-ACE. The earned reward points can
be redeemed against attractive gift vouchers and offers.
3. How will I know how many reward points have I accumulated? You can check the
status of your accumulated reward points on your trading screen under trading sc
reen. A complete statement of transactions of your reward points can also be vie
wed on trading screens.
4. How do I redeem my reward points? The reward points accumulated by you can be
redeemed using the "Redemption" option in the Trade Reward section. You can red
eem your reward points against our list of attractive gift vouchers and offers.
5. How many points can I redeem ? The points reflected against "Total Redeemable
" option in the statement can be redeemed at anytime. The redeemable points are
calculated on the basis of previous months transactions.
6. When will I get my gift? Any redemption request received by Religare will be
fulfilled in approximately two
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weeks time from the date of receipt & delivery will be made at the address regis
tered with us. You can also track your shipments by using Previous Redemption opti
on.
Redemption partners
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Religare Securities Limited
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Religare Securities Limited (RSL), a 100% subsidiary of Religare Enterprises Lim
ited is a leading equity and securities firm in India. The company currently han
dles sizeable volumes traded on NSE and in the realm of online trading and inves
tments; it currently holds a reasonable share of the market. The major activitie
s and offerings of the company today are Equity Broking, Depository Participant
Services, Portfolio Management Services, International Advisory Fund Management
Services, Institutional Broking and Research Services. To broaden the gamut of s
ervices offered to its investors, the company offers an online investment portal
armed with a host of revolutionary features. RSL is a member of the National St
ock Exchange of India, Bombay Stock Exchange of India, Depository Participant wi
th National Securities Depository Limited and Central Depository Services (I) Li
mited, and is a SEBI approved Portfolio Manager. Religare has been constantly in
novating in terms of product and services and to offer such incisive services to
specific user segments it has also started the NRI, FII, HNI and Corporate Serv
icing groups. These groups take all the portfolio investment decisions depending
upon a clients risk / return parameter. Religare has a very credible Research an
d Analysis division, which not only caters to the need of our Institutional clie
ntele, but also gives their valuable inputs to investment dealers.
Key Events and Milestones
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1994 RSL received membership of the NSE as stock broker
2000 RSL received membership of the Futures and Options segment of the NSE RSL r
eceived registration as Depository Participant with NSDL 2002 RSL received registr
ation as Portfolio Manager from SEBI 2003 RSL received registration as Depository P
articipant with CDSL. 2004 RSL received membership of the BSE as stock broker
2006 Establishment of representative office in London. RCL received membership o
f NMCE. RIBL received licence from IRDA to act as composite broker. Joint venture
agreement with Aegon International N.V. for carrying on the business of mutual f
und asset management.RSL received registration as Merchant Banker in Category - I
from SEBI.
2007 -RSL received membership of derivative segment of the BSE as trading-cum-cl
earing member
VISION AND MISSION
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

Vision
To build Religare as a globally trusted brand in the financial services domain a
nd present it as the Investment Gateway of India'.
Mission
Providing complete financial care driven by the core values of diligence and tra
nsparency.
Brand Essence
Core brand essence is Diligence and Religare is driven by ethical and dynamic pr
ocesses for wealth creation.
Major Players of Online Trading in India Religare Securities
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ICICI Direct Share Khan India bulls Motilal Oswal HDFC HSBC Angel Trade Reliance
Money Standard Chartered IDBI Paisa Builder Geojit Networth Kotak Securities In
dia infoline India infoline Others
Religare securities offering different services.
a) Equity & Derivative:
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

Religare is one of the heavyweight equity players in India with membership of Na
tional Stock Exchange of India and Bombay Stock Exchange - both major exchanges
of India. We believe in innovative services that could cater a range of customer
s according to their requirements.
b) Commodities: Religare Commodities Limited is a member of both the exchanges (
MCX & NCDEX) that allows you to trade in all the commodities traded at both the
exchanges. At present, trading in commodities is restricted to futures contracts
only. Religare is currently offering special services to our esteemed investors
in commodities:. Portfolio Advisory Services (COMPASS) - This allows investors
to get the benefit of our in-depth research services and generate better returns
with minimal risk.
c) Depository Services: Religare is among the few major Depository Participants
holding securities worth more than Rs.6000 crore under its management. RSL provi
des depository services to investors as a Depository Participant with NSDL and C
DSL.
d) Portfolio Management Services The main idea behind Portfolio Management Servi
ces is to manage our client's wealth more efficiently, reduce risk by diversifyi
ng across assets, sectors and funds, and maximizing returns.
JOINT VENTURES
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AEGON Religare Life Insurance Company Life Insurance business (AEGON as a partne
r) For more information log on to
www.aegonreligare.com
Religare Macquarie Wealth Management Ltd. Private Wealth business (Macquarie, Au
stralian Financial For Services major as log a partner) on to
more
information
http://www.religaremacquarie.com/
Vistaar
Religare
-The
Film
Fund
India's first SEBI approved Film Fund (Vistaar as a For more information log par
tner) on to
http://www.vistaarreligare.com/
Milestone Religare - Private Equity Fund Milestone, one of India's premier indep
endent fund houses and Religare have come together and through the JV have forme
d an entity, Milestone Religare Investment Advisors Private Limited. For more in
formation log on to
http://www.milestonereligare.com/
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OTHER GROUP COMPANIES Fortis Healthcare Limited, established in 1996 was founded
on the vision of creating an integrated healthcare delivery system. With 22 hos
pitals in India, including multispecialty & super specialty centres, the managem
ent is aggressively working towards taking this number to a significant level in
the next few years to provide quality healthcare facilities and services across
the nation.
Super Religare Laboratories Limited (formerly SRL Ranbaxy) within 11 years of in
ception has become the largest Pathological Laboratory network in South Asia. It
started a revolution in diagnostic services in India by ushering in the most sp
ecialized technologies, backed by innovation and diligence. The current footprin
t extends well beyond India in the Middle East and parts of Europe.
For more information log on to: http://www.srl.in/
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Type of Account Religare Stock Trading Religare Demat Religare Brokerage
Brokerage and Account Fees of Religare Securities Product of RSL Religare offers
its wide range of financial services though a sophisticated and customized trad
ing platform - R-ACE (Religare Advanced Client Engine). Below are 3 flavors of R
ACE accounts available to the investors. 1. R-ACE Lite (Advanced)
R-ACE Lite is the advanced trading platform for the investor of Religare. This t
rading account provides the entire feature of R-ACE (Basic) account. In addition
it also provides real-time streaming stock quotes and alerts. This trading plat
form is also browser based and no software installation is needed. 2. R-ACE Pro
(Professional)
As the name indicates this account is for high volume traders. Along with the fe
atures from above 2 accounts, this account also comes with Trading Terminal soft
ware which needs to install on your computer. This terminal directly connects th
e investor to stock market and having all industry standard Treading terminal fe
atures including technical charting (intra-day and EOD), multiple watch list, ad
vanced hot-key functions for faster trading, derivative chains, futures & option
s calculator etc. As in basic and advance account, trading is available online t
hrough internet and offline though phone.
1. R-ACE LITE
[ADVANCED]
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Account activation charges Rs.499 Minimum margin of Rs.5000 required. Now due to
modern business world and spread of the Information Technology most of the inve
stor suggests online trading for saving the time as well as accuracy of the tran
saction. Religare provide such services to its clients through R-ACE Lite accoun
t. In such type of account client have a separate login id and password for open
a R-ACE Lite software. In this software client can watch 20 different scripts a
s his wish and can trade online. The clients can also make 6 groups of 20 script
s each.
1. R-ACE PRO [ PROFESSIONAL]
Account activation charges Rs.999 Minimum margin of Rs.10000 required. Religare
also provide a very huge platform for its big and loyal clients. R-ACE pro is a
same account as R-ACE Lite but only the difference in the R-ACE Pro is that a cl
ient can add unlimited scripts as his wish.
Brokerage at Religare Securities Religare offers different brokerage plans for d
ifferent kind of clients. Let us see one by one plan as mentioned below. R-ACE C
LASSIC PLUS:
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

Particular Fees Validity Period
Classic plus Rs. 600 6 Months
Brokerage: Type of trade Monthly turnover (Less than 1 cr.) Intraday Delivery Fu
ture 0.05% 0.50% 0.05% Monthly turnover (1 Cr. To 5 Cr.) 0.04% 0.40% 0.04% Month
ly turnover (More than 5 Cr.) 0.03% 0.30% 0.03%
Note: Option brokerage is calculated 1% of gross premium amount or Rs. 75 per lo
t whichever is higher
R-ACE TRUMP PLUS: Particulars Cost of Subscription Validity Period Brokerage on
Delivery Brokerage on Intraday Brokerage on Future Trade Brokerage on Option tra
de(premium) Trump Plus Rs. 2500 12 Months 0.25% 0.025% 0.025% 1% Gross premium a
mount or Rs 50 per lot whichever is higher
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R-ACE TRUMP SUPER: Particulars Cost of Subscription Validity Period Brokerage on
Delivery Brokerage on Intraday Brokerage on Future Trade Brokerage on Option tr
ade(premium) Trump Super Rs. 15000 12 Months 0.15% 0.015% 0.015% 1% Gross premiu
m amount or Rs 50 per lot whichever is higher
R-ACE TRUMP STAR: Particulars Cost of Subscription Validity Period Brokerage on
Delivery Brokerage on Intraday Brokerage on Future Trade Brokerage on Option tra
de(premium) Trump Star Rs. 50000 12 Months 0.10 0.01 0.008 Rs 50 per lot
R-ACE TRUMP SUPERSTAR: Particulars Cost of Subscription Validity Period Trump Su
perstar Rs. 100000 12 Months
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Brokerage on Delivery Brokerage on Intraday Brokerage on Future Trade Brokerage
on Option trade(premium) Charges for call N Trade/ advisory desk or any other of
fline trade facility
0.10 0.005 0.005 Rs. 25 per lot Rs. 10 per lot
INTRODUCTION TO COMMODITY MARKET
INDIAN COMMODITY MARKET
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INTRODUCTION The vast geographical extent of India and huge population is aptly
complemented by the size of the market. The broadest classification of the India
n Market can be made in terms of the commodity market and the bond market.
The commodity market in India comprises of all probable markets that we come acr
oss in our daily lives. Such markets are social institutions that facilitate exc
hange of goods for money. The cost of goods is estimated in terms of domestic cu
rrency. India commodity market can be subdivided into the following two categori
es:
Wholesale Market Retail Market The traditional wholesale market in India dealt w
ith whole sellers who bought goods from the farmers and manufacturers and then s
old them to the retailers after making a profit in the process. It was the retai
lers who finally sold the goods to the consumers. With the passage of time the i
mportance of whole sellers began to fade out for the following reasons: The whol
e sellers in most situations, acted as mere parasites who did not add any value
to the product but raised its price which was eventually faced by the consumers.
The improvement in transport facilities made the retailers directly interact wi
th the producers and hence the need for whole sellers was not felt. In recent ye
ars, the extent of the retail market (both organized and unorganized) has evolve
d in leaps and bounds. In fact, the success stories of the commodity market of I
ndia in recent years has mainly centered on the growth generated by the Retail S
ector. Almost every commodity under the sun both agricultural and industrial is
now being
provided at well distributed retail outlets throughout the country. Moreover, th
e retail outlets belong to both the organized as well as the unorganized sector.
The unorganized retail outlets of the yesteryears consist of small shop owners
who are price takers where consumers face a highly competitive price structure.
On the other hand the organized sector is owned by various business houses like
Pantaloons,
Reliance, Tata and others. Such markets are usually selling a wide range of agri
cultural
33

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

articles and manufactured, edible and
inedible, perishable and durable. Modern promotion enable such markets to
marketing strategies and other techniques of sales
draw customers from every section of the society. However the growth of such mar
kets has still centered on the urban areas primarily due to infrastructural limi
tations. Considering the present growth rate, the total valuation of the Indian
Retail Market is estimated to cross Rs. 10,000 billion by the year 2010. Demand
for commodities is likely to become four times by 2010 than what it presently is
. COMMODITY A commodity may be defined as an article, a product or material that
is bought and sold. It can be classified as every kind of movable property, exc
ept Actionable Claims, Money & Securities. Commodities actually offer immense po
tential to become a separate asset class for market-savvy investors, arbitrageur
s and speculators. Retail investors, who claim to understand the equity markets,
may find commodities an understand as far as
unfathomable market. But commodities are easy to
fundamentals of demand and supply are concerned. Retail investors should underst
and the risks and advantages of trading in commodities futures before taking a l
eap. Historically, pricing in commodities futures has been less volatile compare
d with equity and bonds, thus providing an efficient portfolio diversification o
ption. In fact, the size of the commodities markets in India is also quite signi
ficant. Of the country's GDP of Rs 13, 20,730 crore (Rs 13,207.3 billion), commo
dities related (and dependent) industries constitute about 58 per cent.
Currently, the various commodities across the country clock an annual turnover o
f Rs 1, 40,000 crore (Rs 1,400 billion). With the introduction of futures tradin
g, the size of the commodities market grows many folds here on.
DIFFERENT TYPES OF COMMODITIES TRADED World-over one will find that a market exi
ts for almost all the commodities known to us. These commodities can be broadly
classified into the following:
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

METAL
Aluminium, Copper, Lead, Nickel, Sponge Iron, Steel Long (Bhavnagar), Steel Long
(Govindgarh), Steel Flat, Tin, Zinc Gold, Gold HNI, Gold M, i-gold, Silver, Sil
ver HNI, Silver M Cotton L Staple, Cotton M Staple, Cotton S Staple, Cotton Yarn
, Kapas Brent Crude Oil, Crude Oil, Furnace Oil, Natural Gas, M. E. Sour Crude O
il Cardamom, Jeera, Pepper, Red Chilli Arecanut, Cashew Kernel, Coffee (Robusta)
, Rubber Chana, Masur, Yellow Peas
BULLION FIBER ENERGY SPICES PLANTATIONS PULSES
PETROCHEMICALS HDPE, Polypropylene(PP), PVC OIL & OIL SEEDS Castor Oil, Castor S
eeds, Coconut Cake, Coconut Oil, Cotton Seed, Crude Palm Oil, Groundnut Oil, Kap
asia Khalli, Mustard Oil, Mustard Seed (Jaipur), Mustard Seed (Sirsa), RBD Palmo
lein, Refined Soy Oil, Refined Sunflower Oil, Rice Bran DOC, Rice Bran Refined O
il, Sesame Seed, Soymeal, Soy Bean, Soy Seeds Maize Guargum, Guar Seed, Gurchaku
, Mentha Oil, Potato (Agra), Potato (Tarkeshwar), Sugar M-30, Sugar S-30
CEREALS OTHERS
COMMODITY MARKET Commodity markets are markets where raw or primary products are
exchanged. These raw commodities are traded on regulated commodities exchanges,
in which they are bought and sold in standardized contracts. It covers physical
product (food, metals and electricity) markets but not the ways that services,
including those of governments, nor investment, nor debt, can be seen as a
35

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

commodity. Articles on reinsurance markets, stock markets, bond markets and curr
ency markets cover those concerns separately and in more depth. One focus of thi
s article is the relationship between simple commodity money and the more comple
x instruments offered in the commodity markets. Commodity market is an important
constituent of the financial markets of any country. It is the market where a w
ide range of products, viz., precious metals, base metals, crude oil, energy and
soft commodities like palm oil, coffee etc. are traded. It is important to deve
lop a vibrant, active and liquid commodity market. This would help investors hed
ge their commodity risk, take opportunities in the market. speculative positions
in commodities and exploit arbitrage
HISTORY OF COMMODITY TRADING
COMMODITY TRADING IN INDIA The history of organized commodity derivatives in Ind
ia goes back to the nineteenth century when the Cotton Trade Association started
futures trading in 1875, barely about a decade after the commodity derivatives
started in Chicago. Over time the derivatives market developed in several other
commodities in India. Following cotton,
36

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

derivatives trading started in oilseeds in Bombay (1900), raw jute and jute good
s in Calcutta (1912), wheat in Hapur (1913) and in Bullion in Bombay (1920). How
ever, speculation in essential
many feared that derivatives lead to unnecessary
commodities, and were harmful to the healthy functioning of the markets for the
underlying commodities, and also to the farmers. With a view to restricting spec
ulative activity in cotton market, the Government of Bombay prohibited options b
usiness in cotton in 1939. Later in 1943, forward trading was prohibited in oils
eeds and some other commodities including food-grains, spices, vegetable oils, s
ugar And cloth. After Independence, the Parliament passed Forward Contracts (Reg
ulation) Act, 1952 which Regulated forward contracts in commodities all over Ind
ia. The Act applies to goods, which are defined as any movable property other th
an security, currency and actionable claims. The Act prohibited Options trading
in goods. The Act envisages (imagine) three-tier regulation: 1) The Exchange whi
ch organizes forward trading in commodities can regulate trading on a day-to-day
basis, 2) The Forward Markets Commission provides regulatory oversight under th
e powers delegated to it by the central Government. 3) The Central Government Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Di
stribution - is the ultimate regulatory authority. In 1970s and 1980s the Govern
ment relaxed forward trading rules for some commodities.
LEADING COMMODITY MARKETS OF INDIA The government has now allowed national commo
dity exchanges, similar to the BSE & NSE, to come up and let them deal in commod
ity derivatives in an electronic trading environment. These exchanges are expect
ed to offer a nation-wide
anonymous, order driven; screen based trading system for trading. The Forward Ma
rkets Commission (FMC) will regulate these exchanges. Consequently four commodit
y exchanges have been approved to commence business in this regard. They are:
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

S.NO. 1
COMMODITY MARKET IN INDIA MULTI COMMODITY EXCHANGE (MCX), MUMBAI
2
NATIONAL COMMODITY AND DERIVATIVE EXCHANGE LTD (NCDEX), MUMBAI
3 4
NATIONAL BOARD OF TRADE (NBOT), INDORE NATIONAL MULTI AHMEDABAD COMMODITY EXCHAN
GE (NMCE),
COMMODITY EXCHANGES IN INDIA: A commodity exchange refers to the market place wh
ere buying and selling of commodities for future delivery takes place. The two i
mportant commodity exchanges in India in which most of the commodity are traded,
are Multi-Commodity Exchange of India Limited (MCX), and National Multi-Commodi
ty & Derivatives Exchange of India Limited (NCDEX). I. MULTI-COMMODITY EXCHANGE
(MCX)
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

MCX an independent multi-commodity exchange has permanent recognition from Gover
nment of India for facilitating online trading, clearing and settlement operatio
ns for commodity futures markets across the country. Key shareholders of MCX are
Financial Technologies (India) Ltd., State Bank of India, NABARD, NSE, HDFC Ban
k, State Bank of Indore, State Bank of Hyderabad, State Bank of Saurashtra, SBI
Life Insurance
Co. Ltd., Union Bank of India, Bank Of India, Bank Of Baroda, Canara Bank, Corpo
ration Bank. Headquartered in Mumbai, MCX is led by an expert management team wi
th deep domain knowledge of the commodity futures integration of dedicated resou
rces, robust technology and scalable since inception MCX has recorded many first
to its credit. Inaugurated in November 2003 by Mukesh Ambani, chairman & managi
ng director, Reliance Industries Ltd, MCX offers futures trading in the followin
g commodity categories: Agro Commodities, Bullion, Metals- Ferrous & Non-ferrous
, Pulses, Oils & Oilseeds, Energy, Plantations, Spices and other soft commoditie
s. MCX has built strategic alliances with some of the largest players in commodi
ties eco-system, namely, Bombay Bullion Association, Bombay Metal Exchange, Solv
ent Extractors' sanghatana, united planters markets. Through the infrastructure,
association of India, pulses importers association, shetkari
association of India and India pepper and spice trade association. Today MCX is
offering spectacular growth opportunities and advantages to a large cross sectio
n of the participants including producers / processors, traders, corporate, regi
onal trading centers, importers, exporters, cooperatives, industry associations,
amongst others MCX being nation-wide commodity exchange, offering multiple comm
odities for
trading with wide reach and penetration and robust infrastructure, is well place
d to tap this vast potential.
NATIONAL COMMODITY & DERIVATIVES EXCHANGE LIMITED (NCDEX) National Commodity & D
erivatives Exchange Limited (NCDEX) is a professionally managed online multi com
modity exchange promoted by ICICI Bank Limited (ICICI Bank), Life Insurance Corp
oration of India (LIC), National Bank
for Agriculture and Rural Development (NABARD) and National Stock Exchange of
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

India Limited (NSE). Punjab National Bank (PNB), CRISIL Limited (formerly the Cr
edit Rating Information Services of India Limited), Indian Farmers Fertilizer Co
operative
Limited (IFFCO) and Canara Bank by subscribing to the equity shares have joined
the initial promoters as shareholders of the Exchange. NCDEX is the only commodi
ty exchange in the country promoted by national level institutions. This unique
parentage enables it to offer a bouquet of benefits, which are currently in shor
t supply in the commodity markets. The institutional promoters of NCDEX are prom
inent players in their respective fields and bring with them institutional build
ing experience, trust,
nationwide reach, technology and risk management skills. NCDEX is a public limit
ed company incorporated on April 23, 2003 under the Companies Act, 1956. It obta
ined its Certificate for Commencement of Business on May 9, 2003. It has commenc
ed its operations on December 15, 2003.
NCDEX is a nation-level, technology driven de-metalized on-line commodity exchan
ge with an independent Board of Directors and professionals not having any veste
d interest in commodity markets. It is committed to provide a world-class commod
ity exchange platform for market driven by best global participants to trade in
a wide spectrum of commodity derivatives practices, professionalism and transpar
ency.
NCDEX is regulated by Forward Market Commission in respect of futures trading in
commodities. Besides, NCDEX is subjected to various laws of the land like the C
ompanies Act, Stamp Act, Contracts Act, Forward Commission (Regulation) Act and
various other legislations, which impinge on its working. NCDEX is located in Mu
mbai and offers facilities to its members in more than 390 centers throughout In
dia. The reach will gradually be expanded to more centers. NCDEX currently facil
itates trading of
thirty six commodities - Cashew, Castor Seed, Chena, Chilly, Coffee, Cotton, Cot
ton Seed Oilcake, Crude Palm Oil, Expeller Mustard Oil, Gold, Guar gum, Guar See
ds, Guar, Jeera, Jute sacking bags, Mild Steel Ingot, Mulberry Green Cocoons, Pe
pper, Rapeseed Mustard Seed ,Raw Jute, RBD Palmolein, Refined Soy Oil, Rice, Rub
ber, Sesame Seeds, Silk, Silver, Soy Bean, Sugar, Tar, Turmeric, Arad (Black Mat
ed), Wheat, Yellow Peas, Yellow Red Maize & Yellow Soybean Meal. At subsequent p
hases trading in more commodities would be facilitated.
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

Since 2002 when the first national level commodity derivatives exchange started,
the exchanges have conducted brisk business in commodities futures trading. In
the last three years, there has been a great revival of the commodities futures
trading in India, both in terms of the number of commodities allowed for futures
trading as well as the value of trading. While in year 2000, futures trading we
re allowed in only 8 commodities, the
number jumped to 80 commodities in June 2004. The value of trading in local curr
ency saw a quantum jump from about INR 350 billion in 2001-02 to INR 1.3 Trillio
n in
2003-04. The data in the below Table indicates that the value of commodity deriv
atives in India could cross the US$ 1 Trillion mark in 2006. The market regulato
r Forward
Markets Commission (FMC) disseminates fortnightly trading data for each of the 3
national & 21 regional exchanges that have been set up in recent years to carry
on the futures trading in commodities in the country. Exhibit presents comparat
ive trading data for three fortnightly periods in March, June and September 2005
and brings up some interesting facts.
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

TYPES OF SHARE TRADING:
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

ONLINE SHARE TRADING:
Online Trading is a service offered on the internet for purchase and sale of sha
res. In the real world, one place orders on ones stockbroker either verbally (per
sonally or telephonically) or in a written form (fax). In Online Trading, one ha
s to access stockbroker's website through one internet-enabled PC and place order
s through the broker's internet-based trading engine. These orders are directed
towards the Stock Exchange without any intervention. There are 2 types of online
trading service: discount brokers and full service online broker. Discount onli
ne brokers allow you to trade via Internet at reduced rates. Some provide qualit
y research, other don't. Full service online brokerage is linked to existing bro
kerages. These brokers allow their clients to place online orders with the Optio
n of talking/ chatting to brokers if advice is needed. Brokerage rates here are
higher. The various transactions involved in online trading can be shown from th
e point of view of the Client Broker Stock Exchange
The client places an order from his net by logging on to his brokers site. The br
oker accepts and executes the order, and places it with the exchanges. The excha
nge accepts the order after checking the share limit for the day. The brokers ma
kes the payment either directly via the clients bank account or pays through his
own account and recovers it later from the client. The exchange receives money a
nd completes the settlement. The client is intimated about the settlement either
through the demat account or via E-mail.
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

BENEFITS OF ONLINE TRADING: This mode of trading has benefited to a great extent
to many users and nowadays more and more people are attracted towards advantage
s are that it:
1. Ensures the best price for investors This technique offers the best price for
the buying and selling transactions of the investors, by ensuring proper matchi
ng of their orders. Also due to the high level of transparency because of displa
y of information relating to the specific stocks and company profiles, the inves
tors are able to get the best quote for the shares. This leads to a reduction in
the transaction cost for the investors.
2. Enables paperless trading Online trading integrates the bank, the brokerage a
nd the demat accounts, which leads to easy and paperless trading for the client.
3. Allows quick trading The investor will be able to execute the entire trading
transaction, right from logging on to the broker's site, to the execution and se
ttlement of his bank account, in a very short period of time.
4. Reduces the settlement This method of trading reduces the settlement risk for
the investor, as in this case no short sale is possible. That is .the seller wi
ll not be able to sell the securities unless he has their
44

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

actual possession. In the case
ction), when a seller wants to
by the Depository Participant
es the settlement risk for the
rities.

of a demat account (required for an online transa

sell the securities, his demat account is checked
before executing the sale transaction. This reduc
buyer, who is assured of the delivery of the secu

HURDLES FOR ONLINE SHARE TRADING

1. Internet fraud: In India, internet frauds are not a very uncommon thing we se
e this kind of frauds happening in different ways.
2. Internet connectivity is not everywhere in India: As we all know that interne
t connectivity is to very less percentage of people and the people who are about
internet are reluctant to go for online trading.
3. Older and experienced investor is not tech savvy. One of the biggest drawback
s that a country like India faces is that the older and experienced people are n
ot that tech savvy so they trust offline trading only.
OFFLINE SHARE TRADING:
45

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

As the name suggest offline share trading is that trading in which client come t
o the RM or call their RM to trade on behalf of them. In a country like India ma
ximum share trading is done offline, as internet facility is not available every
where in our country and various disadvantages that are attached to online share
trading, many investor prefer offline share trading, which may be time consumin
g but a safer option.
Working of offline share trading:
Normally in all broking firms each client is appointed one RM (Relationship mana
ger) and one dealer, RM looks and performs the transaction on behalf on of their
client, suppose client will call up the RM, then RM will enter the order in his
computer as stated by the client. RM also provides him various other informatio
n like margin short and other intra day report. in case of offline share trading
, RM dealer can only advice their client but he cant commit a benefit in doing a
particular transaction. All the telephone calls are recorded in case any proble
m may arise in future.
ADVANTAGES OF OFFLINE SHARE TRADING
46

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

1. safer in comparisons to online share trading. Offline share trading is always
considered to be a safer option than online share trading, because of increasin
g internet fraud.
2. Share trading can be done without internet connectivity at ones home. In a cou
ntry like India where internet connectivity is not available everywhere trading
online is not possible for everyone, this is also the reason which enhances the
growth of offline trading.
3. Better for new investors: offline share trading is considered to be better fo
r new investor because in that case he can take a help of RM, but I case of onli
ne share trading he himself must have a complete knowledge about share market.
4. Brokerage charged is less as compared to online trading. Brokerage charges ar
e more in case of online share trading but less in offline share trading, if we
compare the brokerage charge of Religare itself brokerage charges for offline ar
e .3p and .30p on Intra day and Delivery respectively.
DISADVANTAGE OF OFFLINE TRADING:
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

1. It is a time consuming process as everything is done offline. it is quite obv
ious that in case of offline share trading takes more time in comparisons to onl
ine share trading, 2. RM may not provide the correct information as required by
his client and may also trade without permission of client in order to achieve h
is brokerage target.
Online Trading Competes with Traditional Brokerage:
There is an increasing demand for online trading due to consumer s growing prefe
rence for internet as compared to offline share trading, but still maximum inves
tor goes for offline share trading, because it is being used from years, and the
y feel it to be a safer option, other reason could be as not much people in Indi
a are tech savvy so the percentage of people doing online share trading is less.
The study done in this report regarding this parameter clearly shows that altho
ugh 91% of the people those who do share trading are aware about online share tr
ading but still they dont prefer it.
DATA ANALYSIS AND INTERPRETATION
INCOME LEVEL
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

NO. OF PERSON
16
14 12 10 8 6 4 2
NO. OF PERSON
0
< 100000 1 - 2 LACS 2 - 5 LACS > 5 LACS
Inference: There are 16 respondents who earn between 200000-500000 lacs and anot
her 14 respondents earn between 100000-200000, 7 respondents earn less than 1000
00 and there are very less respondents in the survey who earn more than 500000 .
INVESTMENT OBJECTIVE
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

NO. OF PERSON
12 10 8 6 4 2 0
NO OF PERSON
Inference: majority person can invest the money of tax benefit .there are
11 respondents can invest money to give a tax benefit. And 9 respondents invest
money to earn a high income benefits .and rest of the the 7
respondents invest the money to getting a retirement protection.
INVESTMENT PORTION OF MY INCOME
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

Sales
< 25% 25% - 50% 50% - 75% > 75%
INFERENCES:
RISK TAKING CAPACITY
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

NO OF PERSON
18 16 14 12 10 8 6 4 2 0 LOW MEDIUM HIGH
NO OF PERSON
INFERENCES :
From whom will you get your Investment Advice?
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

NO OF PERSON
OTHERS
CONSULTANTS
NO OF PERSON
FAMILY
FRIENDS
0
2
4
6
8
10
12
14
INFERENCES : There are majority of customers whose first source of
information itself .i.e 13 respondents from others and the 11 respondents from f
amily. And the remaining customers have first source of information friends, bro
kers or consultants . These sources help the customers to take the decision rega
rding investment i.e which commodity would be beneficial
VARIOUS INVESTMENT AVENUES
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

POST OFFICE SAVINGS 13%
NO OF PERSON
BANK DEPOSITS 13%
SHARES 45%
INSURANCE 7% DEBENTURES 2% COMMODITY MARKET 5%
MUTUAL FUNDS 15%
INFERENCES: The above observation speaks about the financial
instruments in which the people invest ;most of the people invest in the securit
ies through share market and than invest in the mutual funds .and than after mos
t of the people invest in the bank deposits. .thus more focuse should be made on
securities so that company has the maximum investment. the less than people are
invest in the debentures .
HOW MUCH RETURNS GET AFTER INVESTING?
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

NO. OF PERSON
16 14 12 10 8 6 4 2 0 NO OF PERSON
> 5%
5% - 10%
10% - 15%
> 20%
INFERENCES : in this above charts seen the 16 respondents are getting
the between the 5- 10 % RETURNS And the another 13 respondents are getting the m
ore than 20 % Retuns and less than 3 respondents are getting the 10 -15 %.
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

TIME HORIZON TO ACHIEVE YOUR FINANCEIAL GOAL?
20 18 16 14 12 10 8
6
4 2 0 < 5 YEARS 6 - 10 YEARS 11-14YEARS >15 YEARS
INFERENCES :
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

HOW MANY MONTHS OF LIVING EXPENSES COULD BE SAFELY COVERED BY YOUR CURRENT LIQUI
D INVESTMENT?
NO. OF MONTHS
> 12 MONTHS 4 - 12 MONTHS < 4 MONTHS
INFERENCES : the more of the person review about this covered by
liquid investment so they all are saying the more than 12 months are minimum occ
urred to getting the living expenses could be safely covered by our liquid inves
tments. And the other 40% response about this is less than 4 months or in within
4-12 months are covered our living expenses .
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

WHILE INVESTING YOUR MONEY WHICH WILL YOU PREFER?
NO. OF PERSON
TRUST 13%
LIQUIDITY 25%
HIGH RETURN 30%
LOW RISK 32%
INFERENCES :
When the person investing in his money by any services provider they most prefer
to higher return in here 30% respondents prefer the higher returns and rest of
the 32% are preferred the low risk taken ..and none of them 13% are prefered the
trust ..because of its a very risky .by servicer provider or even though the inv
estors . That mean customers have different perception regarding investing their
money.
HOW DO YOU INTEND TO USE THE INCOME EARNED BY YOUR INVESTMENT PORTFOLIO?
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

NO. OF PERSON
20 18 16 14 12 10 8 6 4 2 0 REINVEST AT LEAST REINVEST 20 - 80 % OF RECEIVE AT L
EAST 80 % EARNINGS EARNINGS 80% INVESTMENT NO. OF PERSON
INFERENCES: The above charts describe the when the people earn the
money while investing and earned they invest the earning income reinvested in th
e share market. The 18 respondents are receving the 80 % amount . and the anothe
r 10 respondents are some part of his income means 20-80% of amout reinvest in t
his .
CONCLUSION
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

Commodities market equity markets contrary to the beliefs of many people, has be
en in existence in India through the ages and still has to go a long way ahead.
Perceptions of investors towards equity and commodity trading might change quite
a lot with time. The project reveals that equity and commodity market works in
delivery base and intraday base .and commodity works in future and derivative in
which investors invest money through the contracts given i.e 2 months contracts
, 3 months contracts which expires last Thursday of every month. The future mark
et also provide the benefits for the traders who want investment but they dont ha
ve enough money at particular time they can invest with margin money in commodit
ies and pay later to earn profits. The investors can avail the benefits by optin
g different options, forward contracting, apply hedging to minimize the loss if
occur in the commodity market. It also provides the facility of the hedging in t
he commodity market by which a customer can minimize the losses which he is faci
ng and ultimately save the principle amount for future investment. Religare secu
rities Ltd has the quality staff which helps in retaining the customers for trad
ing and the employees provide the advice about the most beneficial commodities a
nd equity provide the solution to the queries of the customers. Thus, it is refe
rred that employees is providing the important role in satisfaction of the custo
mers.
The project explains about satisfaction of the customers who are trading with th
e Religare securities Limited on the services provided by the RCL which is essen
tial to smooth functioning of the trading. The firm is able to satisfy their cus
tomers by providing quality services and earning the higher profits in the marke
t. At last, it can be concluded that most of the customers are satisfied with se
rvices provided by the potential customers. Religare securities Limited and they
are ready to give advice of
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

APPENDIX
QUESTIONNAIRE
Name: ________________
ve 75 yrs

Age: [ ] Below 25 yrs [ ] 25-50 yrs [ ] 50-75 yrs [ ] Abo

Occupation: [ ] Business [ ] Profession [ ] Employed [ ] Others

Gender: [ ] Male [ ] Female
Educational qualification: ___________
Annual income: [ [ ] Below 1, 00,000 ] Ab
ove 5, 00,000 [ ] 1, 00,000 -2, 00,00 [ ] 2, 00,000-5, 00,000
Your Investment objective: [ safety [ ] For future welfare [ ] Retirement protec
tion [ ] Tax benefit ] High income [ ] Reasonable income [ ] Reasonable income a
nd
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

Investment portion of your income [ ] below 25% [ ] 25% to 50% [ ] 50% to 75% [
] above 75%
Your Risk taking capacity [ ] low [ ] Medium [ ] High
From whom will you get your Investment Advice? [ ] Friends [ ] Family [ ] Consul
tants [ ] Others
Your preference to various Investment avenues [ [ ] Shares [ ] Mutual funds [ [
] Commodity market [ [ ] Debentures
] Insurance
] Bank deposits
] Post office savings
What are the reasons for your preference?
Do you have any investment in last 6 months? ___________________________________
_____________________________________ _____
How much Return you Get after Invest
ing ? [ [ ] >5% ] 10% -15% [ [ ] 5 % - 10 % ] 15 % - 20%
What is the primary objective for these assets? [ [ [ ] Wealth preservation ] So
urce of Income ] Capital Appreciation
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

[
] Retirement planning/ Education funding/long term wealth accumulation
What is the time horizon you have to achieve your financial goal? [ [ [ [ ] 0-5
years ] 6-10 years ] 11-14 years ] 15 years or longer
How do you intend to use the income earned by your investment portfolio? [ [ [ ]
Reinvest at least 80% of my earnings ] Reinvest between 20% and 80% of my earni
ngs ] Receive at least 80% of my earnings as income
Taking into consideration all sources of income, what is your current attitude t
owards your income needs: [ [ [ ] I can forego at least 10% of my current income
] Present income is adequate for present needs ] I need at least 10% more incom
e
How many months of living expenses could be safely covered by your current Liqui
d investments? [ [ [ ] More than 12 months ] Between 4 and 12 months ] Less than
4 months
Which of the following best describes your reaction if the value of your portfol
io suddenly declined 15%?
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[
] I would be very concerned because I cannot accept fluctuations in the value of
my portfolio. [ decline. [ [ ] If the amount of income I received was unaffecte
d, it would not bother me. ] I invest for long term growth and accept temporary
fluctuations due to market ] I invest for long term growth, but would be concern
ed about even a temporary
influences.
While investing your money, which factor will you prefer? . (a) Liquidity (b) Lo
w Risk (c) High Return (d) Trust
Have you ever invested any where? Pl [ ] Yes [ ] No
If yes where_______________________________________________________________
Rank your understanding and comfort-level with investing in the stock market
[ ]
No experience and no comfort level in investing in stocks
[ ] No experience, but some level of comfort in stocks Some experience, and inte
rest in stock market investing
[
]
Reasonable experience and comfort level with the stock market
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

[
]
Extensive background and understanding of the stock market
BIBLIOGRAPHY
www.religareonline.com www.religrecm.com www.religarecommodities.com
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AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD

http://www.commodities.in www.religaresecurities.com www.moneycontrol.com
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