CHAPTER -1

INTROUDUCTION

1
1. INTRODUCTION
In most industrialized countries, a substantial part of financial wealth is not managed
directly by savers, but through a financial intermediary, which implies the existence of an
agency contract between the investor (the principal) and a broker or portfolio manager (the
agent). Therefore, delegated brokerage management is arguably one of the most important
agency relationships intervening in the economy, with a possible impact on financial
market and economic developments at a macro level.
In most of the metros, people like to put their money in stock options instead of
dumping it in the bank-lockers. Now, this trend pick pace in small but fast developing
cities like Chandigarh, Gurgaon, Jaipur, Coimbatore etc. My research is based on the
residents of COIMBATORE and its nearby areas.
As the per-capita-income of the city is on the higher side, so it is quite obvious that
they want to invest their money in investment products. On the other hand, a number of
brokerage houses make sure the hassle free investment in stocks. Asset management firms
allow investors to estimate both the expected risks and returns, as measured statistically.
There are five types of investment products
• Fixed Deposit
• Recurring Deposit
• Share Market
• Mutual Funds
• Insurance

2
 CHAPTER-2
OBJECTIVES OF TRAINING

3
2. OBJECTIVES OF TRAINING
• To understand the functions of Equity and Commodity market.
• To know about the process involved investments in share, mutual fund, FD, RD
• To learn the procedure for opening Demat account in.
• To learn the fundamental concepts for online trading
• To understand process of approaching and convincing the customers to invest in share
market.
• To know about the importance of customer service through phone and mail.

4
 CHAPTER-3
SCOPE OF TRAINING

5
3. SCOPE OF TRAINING
During this training it is possible to gain industry knowledge first hand from an
organization and professionals. This training is helpful to learn new skills and add to the
knowledge base while gaining confidence in abilities. Learnt about the fundamentals of
mutual funds distributions and Key functions of Reliance Securities. Enlightened about the
investments in share markets. Through this training it is possible to get opportunity to
practice communication skills and got a work experience related to share trading and mutual
funds. This experience that enhances my academic, career, and personal development.

6
 CHAPTER-4
TRAINING METHODOLOGY

7
4. TRAINING METHODOLOGY
4.1. Basics of Stock Market and Trading
1. During the first day of the company will be covering the basics of stock market, as
I know most of them know nothing about stock markets, and how trading is done.
2. Company will provide with an introduction about stock market, trading, and
investments.
a. I had been given knowledge about trading terminologies such as IPO, NFO,
Nifty, Sensex, MCX etc.
b. Get the facts, and break the myths about various markets related terms.
3. Company will help to understand trading framework, and how buy and sell shares.
a. Company will help to understand the secondary market, and how online trade
mechanism works.
b. And familiarize with trading terms, long, short, long unwinding and short
covering.

4.2. Road Map to a Successful Stock Trading

Here our basic objective is to help to build confidence, If can start making money online.
This session will focus on “how to make money”.
1. Here company will share with a case study that will talk about stock trading being
a. Business or Gambling.

2. The company will help understand the risks and rewards potentials.
a. Where company will discuss the relevance and importance of knowledge,
consistency, and discipline.

3. Company will move towards basic analysis.

a. Discussion on fundamental news, role of media and its impacts in markets
b. Company will learn about the two types of analysis, and their approach to
understand the market direction.
c. Pro and cons of fundamental and technical Analysis
d. The company will learn the essentials of charts and its types line, bar and
candlestick

8
4.3. Live market Session
Here company will help overcome the practical difficulties, and to help place all that have
learnt into practice. A live market session will help bring clarity, and company will be able to
understand all the concepts much better.
1. Company will be decoding the stock market information tools and trading screen
2. Learn about intraday analysis
a. Learn about Stock Selection Methods – with the Top Down Approach
b. Learn about intraday charts and its importance
c. Learn how to develop a trade plan
2. Company will practice technical analysis
a. Learn about positional analysis
b. Identifying the appropriate trading instruments (F&O) to optimize risk
adjusted returns
3. Company will discuss the Do’s and Don’ts, opportunities and traps in stock
trading business.
4. And explain to other necessary recommendations to help it get started with stock
trading.

4.4. Work Activity

Once I have completed my classroom training session, company will be give work
complete at office. These short tasks will help practice the skills they have taught, so they are
fixed in brain.
• First 10 days module – This Aims to recollect the concepts discussed at the workshop
It helps to revisit the concept
• Participant will be given complete access to videos, members and trainer to get their
doubts resolved
• Next 15 days module – This enable to spot the various technical pattern using charts
• Technical pattern recognition with rationale
• Reviewing other member technical spots.
• 5 more modules – This will make an independent in recognizing the trading
opportunities.
• Stock Screening – Learn what to buy and when to buy it.
• Tracking the stock market on day to day basis.

9
 CHAPTER-5
INDUSTRIAL PROFILE

10
5. INDUSTRIAL PROFILE
The emergence of stock market can be traced back to 1830. In Bombay, business
passed in the shares of banks like the commercial bank, the chartered mercantile bank, the
chartered bank, the oriental bank and the old bank of Bombay and shares of cotton presses. In
Calcutta, Englishman reported the quotations of 4%, 5%, and 6% loans of East India
Company as well as the shares of the bank of Bengal in 1836. This list was a further
broadened in 1839 when the Calcutta newspaper printed the quotations of banks like union
bank and Agra bank. It also quoted the prices of business ventures like the Bengal bonded
warehouse, the Docking Company and the storm tug company.

Between 1840 and 1850, only half a dozen brokers existed for the limited business.
But during the share mania of 1860-65, the number of brokers increased considerably. By
1860, the number of brokers was about 60 and during the exciting period of the American
Civil war, their number increased to about 200 to 250. The end of American Civil war
brought disillusionment and many failures and the brokers decreased in number and
prosperity. It was in those troublesome times between 1868 and 1875 that brokers organized
an informal association and finally as recited in the Indenture constituting the “Articles of
Association of the Exchange”. On or about 9th day of July, 1875, a few native brokers doing
brokerage business in shares and stocks resolved upon forming in Bombay an association for
protecting the character, status and interest of native share and stock brokers and providing a
hall or building for the use of the members of such association.

As a meeting held in the broker’ Hall on the 5th day of February, 1887, it was
resolved to execute a formal deal of association and to constitute the first managing
committee and to appoint the first trustees. Accordingly, the Articles of Association of the
Exchange and the Stock Exchange was formally established in Bombay on 3rd day of
December, 1887. The Association is now known as “The Stock Exchange”.

The entrance fee for new member was Re.1 and there were 318 members on the list,
when the exchange was constituted. The numbers of members increased to 333 in 1896, 362
in 1916and 478 in 1920 and the entrance fee was raised to Rs.5 in 1877, Rs.1000 in 1896,
Rs.2500 in 1916 and Rs. 48,000 in 1920. At present there are 23 recognized stock exchanges
with about 6000 stock brokers. Organization structure of stock exchange varies. 14 stock
exchanges are organized as public limited companies, 6 as companies limited by guarantee

11
and 3 are non-profit voluntary organization. Of the total of 23, only 9 stock exchanges have
been permanent recognition. Others have to seek recognition on annual basis.
These exchange do not work of its own, rather, these are run by some persons and with the
help of some persons and institution.

5.1. ABOUT RELIANCE

Powered by Reliance Capital, reliancesmartmoney.com is a 'neutral financial services
marketplace'; empowering people to do what's right for their money. The multi-product
digital platform provides access to Mutual Funds, Stocks, Loans & Insurance, PMS,
Corporate FDs & Bonds, amongst others; helping take informed decisions & transact across
asset classes seamlessly.

5.1.1. VISION
“To be the most trusted financial services brand creating continuous value for our
customers by helping them achieve financial prosperity via innovative & analytically driven
solutions”.

5.1.2. MISSION
“To simplify investments & trading for our customers through technology backed,
user friendly, value-broking services”.

5.1.3. PROMISE
“Empower people to do what’s right for their money”.

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5.2. OUR BUSINESS
5.2.1. Retail Broking

5.2.2. Digital Business

5.2.3. Privilege Client Group

13
5.2.4. Investment Services Group

5.3. RETAIL BROKING

5.3.1. RELIANCE RETAIL INSURANCE BROKING LIMITED
Reliance Retail Insurance Broking Limited is a Non-government company,
incorporated on 20 Nov, 2006. It's a public unlisted company and is classified as 'company
limited by shares'.
Company's authorized capital stands at Rs 400.0 lakhs and has 100.0% paid-up capital
which is Rs 400.0 lakhs. Reliance Retail Insurance Broking Limited last annual general meet
(AGM) happened on 30 Jul, 2018. The company last updated its financials on 31 Mar, 2018
as per Ministry of Corporate Affairs (MCA).
Reliance Retail Insurance Broking Limited is majorly in Finance business from last
13 years and currently, company operations are active. Current board members & directors
are Pramod Madhukar Bhawalkar, Rajendra Madhav Kamath and Venkatesh Raghavendra
Gulur

14
5.3.2. Reliance Retail Insurance Broking Limited Details

CIN U67200MH2006PLC165651

Date of Incorporation 20 Nov, 2006

Status Active

Company Category Company limited by Shares

Company Sub-category Non-govt company

Company Class Public

Business Activity Finance

Authorized Capital 400.0 lakhs

Paid-up Capital 400.0 lakhs

Paid-up Capital % 100.0

Registrar Office City Mumbai

Registered State Maharashtra

Registration Number 165651

Registration Date 20 Nov, 2006

Listing Status Unlisted

AGM last held on 30 Jul, 2018

Balance Sheet last updated on 31 Mar, 2018

15
5.3.3. Acquisition of MTS India and Digicable
On 1st July 2010, the board of Reliance Communications confirmed about the
acquisition of Digicable the India's largest cable network in all-stock deal. The new entity
named as Reliance Digicom. Which will integrate RCOM’s DTH TV, IPTV and Retail
Broadband Operations with Digicable
On 14 January 2016, Reliance Communications announced that it had acquired
Sistema Shyam TeleServices Limited (SSTL, operating as MTS India) in an all-stock deal.
SSTL received a 10 per cent stake in Reliance Communications after repaying its existing
debt. Reliance Communications would assume responsibility for installments that MTS owed
the government for spectrum purchases, amounting to 392 crore every year for 10 years. As a
result of the deal, Reliance acquired MTS India's subscribers and SSTL's spectrum in the 850
MHz band.
India's anti-trust regulator, the Competition Commission of India (CCI) approved the
merger in February 2016. The Securities and Exchange Board of India (SEBI) also cleared
the deal. SSTL shareholders approved the merger on 18 March 2016.By mid-August, it was
approved by tax authorities and the shareholders and creditors of Reliance and SSTL. The
merger was approved by the Rajasthan High Court on 30 September 2016 and the Bombay
High Court on 7 October 2016.In April 2017, Reliance laid off 600 employees in preparation
for its mergers with MTS and Aircel. The Department of Telecommunications gave the final
approval for the merger on 20 October 2017. On 31 October 2017, Reliance Communications
announced that the merger was complete.

5.3.4. Attempted merger with Aircel

On 14 September 2016, Reliance and Maxis Communications (owners of Aircel)
announced that they would merge their mobile networks. The deal, the largest consolidation
in Indian telecommunication history, would have created the fourth-largest mobile network
operator in the country in subscribers and revenue. Reliance and Maxis would each hold a 50-
percent stake in the merged entity, with equal representation on its board of directors and
committees. Reliance would continue to operate in the enterprise segment and data-center
businesses as a standalone company.
The company announced on 15 March 2017 that it had received approval from the
SEBI, BSE, and NSE. The deal was approved by the CCI on 20 March. Aircel and Reliance

16
shareholders approved the merger on 22 and 24 April 2017, respectively, and it was expected
to be completed by mid-2017.
However, on 1 October Reliance announced that it had allowed the merger agreement
to lapse. The deal, which was expected to help the company repay ₹25,000 crore of debt, was
cancelled due to delays by entrenched competition. Reliance was looking at other options to
meet their obligations under the SDR agreement and avoid insolvency proceedings by
banks. Due to the failed Aircel merger, the company announced to employees in the wireless
and DTH businesses on 25 October 2017 that they would be redundant effective 30
November. On 29 December 2017, Reliance discontinued voice services in India and would
provide only 4G data service.

5.3.5. The Ericsson case

In 2013, Rcom signed a multi-year managed services agreement (MSA) with
Ericsson to manage services of wireline and wireless network of 100,000 km of fiber and
mobile infrastructure in 11 telecom circles in India. This arrangement was a smooth business
relationship until 2016, post which Rcom struggled to pay the dues. This has been seen as an
impact of Reliance Jio that disrupted the Indian telecom industry with its aggressive pricing
after its commercial launch in September 2016 that affected all leading telecom players.
By September 2017, Ericsson terminated the MSA and approached the NCLT to
recover dues of Rs 1100 crores. By May 2018, the NCLT initiated insolvency proceedings
even as Rcom tried to sell spectrum and other assets. At the same time, RComm reached out
to Ericsson and agreed to pay Rs 550 crore as a settlement with a personal guarantee from
Anil Ambani on the condition of withdrawal of insolvency proceedings. The Supreme Court
reviewed the matter in August 2018 and ordered RComm to pay up Rs 550 crore to Ericsson
by 30 September. RComm failed to comply with the payment and sought an extension of 60
days to comply. Ericsson filed a contempt petition in Supreme Court.
In February 2019, the Supreme Court has held Anil Ambani and three others guilty of
contempt of court and directed them to make payments by 19 March. In the meantime,
Mukesh Ambani, the elder brother of Anil helped him with a bailout of 463 crores which he
paid just a day before the deadline on 18 March.

17
5.4. RELIANCE DIGITAL
Reliance Digital is a consumer durables and information technology concept from
Reliance Retail. It is a subsidiary of Reliance Retail, which is a wholly owned subsidiary
of Reliance Industries.
Reliance Digital is a consumer electronics company in India. The first Reliance
Digital Store was opened on 24 April 2007 in Delhi.[4] Currently there are around 2000
Reliance Digital & Reliance Digital Xpress Mini Stores in around 600 cities in India.

5.4.1. Digital Xpress Mini

Digital Xpress Mini Stores are relatively smaller in size than Reliance Digital. These
stores are about 250 square feet and mainly sell the company's telecom services,
smartphones, tablets and also accessories of other brands. There are around more than 1700
Digital Xpress Mini stores as of the Feb 2017. These stores have since been rebranded as 'Jio
Stores' after the launch of Jio.

5.4.2. Reliance ResQ

ResQ is the service arm of Reliance Digital / Digital Xpress and Digital Xpress mini
stores, which caters to customers for after sales service. ResQ is India’s first Multi product,
Multi brand, Multi-location service facility which offers service from 10am to 10pm, 365
days a year. The resQ Care Plans offer scheduled preventive maintenance visits and Standby
units in special cases.

5.4.3. iStore
Reliance Digital also operates a chain of Appleresellers in India under the
name iStore. There are about 4 such stores in India currently.

5.4.4. Reconnect
Reliance Digital launched its private label of products branded "RECONNECT" in
October, 2011, which is said to have been inspired by former, and fabulous, section co-
ordinator Mumbai native - Steven Jeffrey Maxwell, who devoted years to the technology
giant. Reconnect product range covers over 200 products, from the latest large-screen LED
TVs, Star-rated Air conditioners, Washing Machines, Smartphones, Tablets to household

18
appliances & personal care products. Major all products comes with a 2-year warranty, while
accessories product warranty vary from 6 months to 1 year.

5.4.5. LYF
Reliance Digital also carries the LYF brand of 4G smartphones. These phones were
launched in January 2016. So far, five phones have been launched - Earth 1, Water 1, Water
2, Wind 6 and Flame 1.

5.4.6. About Reliance Digital

Discover, Experience and Buy a range of products at Reliance Digital. Discover 150
international and national brands and over 4000 products. Experience the best potential of
each product in an ambience that simulates r life style. Not only do they enable to make an
intelligent buying decision, but also offer complete product life cycle support – ResQ – our
proprietary advisory and post-sales support service.

5.4.6.1. Top brands and wide range of products

Choose products from the best of brands –from Sony, LG in Home Entertainment,
and Nokia, Samsung in mobile phones, to Panasonic, and Toshiba in Home Appliances.
Discover products that best suit lifestyle needs and provides best value for money in terms of
TCO.

5.4.6.2. Experience the Digital Zone

Touch, feel and try every product before make BUY decision! Get Up, Close and
Personal with the latest products in our specially designed Experience Zones for high-end
entertainment systems like home theatres, televisions, home and car music systems. These
zones simulate an environment that brings the best of each product alive – thereby guiding to
make the right choice.

5.4.6.3. After sales service and support

Bought that big smart TV and don't know where best to place it in the room? Or have
a device malfunction/breakdown and hassled about setting it right? Be it product installation,
break down or maintenance - Trust ResQ to bail out! Our ResQ personnel shall personally

19
visit, rectify, and provide with a step-by-step guidance for maintenance till the life cycle of
the product.

5.5. RELIANCE PRIVILEGE CLIENT GROUP

Privilege Client Group from Reliance Securities is an exclusive and customised
service offering, which is very dynamically designed to serve the needs of High Net worth
Individuals and corporate. I understood that the requirement of every HNI individual or
corporate is different, and I inculcated the same objective in our service offering. Currently,
they are present at 4 locations - Mumbai, Bangalore, Delhi and Hyderabad, and they are
continually working to widen our reach, to cater to needs.

5.5.1. Our Approach

• To build a long-term partnership with our clients by providing quality services across
a broad range of asset classes.
• Ensure preservation & growth of client’s wealth at all times.
• Offer customized investment solutions & services, by understanding the investment
objective of clients.
• To offer exceptional pre-trade & post trade servicing, which ensures complete
satisfaction & convenience.

20
5.5.2. Proficient Team
They have well qualified and trained professionals with ample of knowledge and
experience of financial services and markets.

5.5.3. Technology
They have state of the art omnichannel platforms that ensures hassle free investment
and reporting to our clients. Our platforms are intuitive and will give seamless investment
and trading experience.

5.5.4. Research
Our dedicated research team continually tracks the Indian and global markets to
provide our clients with research reports and valuable data cuts for make r investment
decisions with ease and com.

5.5.5. Investment Range

Never put all eggs in one basket are an old &wise saying they believe in hence they
provide a comprehensive range investment options. They provide invest in all asset class like
Equity, derivatives, MF, NCD, PMS Etc.

5.6. RELIANCE INVESTMENT SERVICE GROUP

Investment Services Group from Reliance Securities is a solution-oriented wealth
management service. It caters to client's investments needs through multiple avenues. They
believe in building a relationship by understanding the financial needs and providing tailored
investment solutions, so our clients can achieve their financial objectives. Our focus is on the
solution and not just offering options to invest.

5.6.1. Our Relationship Managers

• Our Relationship Managers are well qualified and professionally trained. They have a
good experience in the field of financial services and understand products well.
• Our Relationship Managers diligent and expertise in gauging requirement and thereby
providing a financial solution to help meet client's financial goal.
• Our Relationship Managers handle only a limited set of clients which helps them give
enough time to clients and serve them better.

21
 • Our Relation managers adhere to all rules and regulations and maintain transparency
with our clients.

5.7. MUTUAL FUND

Reliance Mutual Fund (RMF) is one of India's leading mutual funds, with Average
Assets Under Management (AAUM) of Rs 2,33,628.56 Crores (January 2019 - March 2019
QAAUM) and 90.67 lakhs folios as on March 31, 2019
RMF which is one of the fastest growing mutual funds in India offers investors a
well-rounded portfolio of products to meet varying investor requirements and has presence in
300cities as on March 31, 2019 across the country. RMF constantly endeavors to launch
innovative products and customer service initiatives to increase value to investors.
Reliance Mutual Fund (RMF) has been established as a trust under the Indian Trusts Act,
1882 with Reliance Capital Limited (RCL), as the Settler/Sponsor and Reliance Capital
Trustee Co. Limited (RCTC), as the Trustee.
Reliance Mutual Fund has been registered with the Securities & Exchange Board of
India (SEBI) vide registration number MF/022/95/1 dated June 30, 1995. The name of
Reliance Capital Mutual Fund was changed to Reliance Mutual Fund effective March 11,
2004 vide SEBI's letter no. IMD/PSP/4958/2004 dated March 11, 2004. RMF was formed to
launch various schemes under which units are issued to the public with a view to contribute
to the capital market and to provide investors the opportunities to make investments in
diversified securities.

5.8. CORPORATE GOVERNANCE

RNAM‘s Board and its management firmly believes in an organizational culture of
robust & highest standards of Corporate Governance since the same is critical in order to
retain & enhance the trust of its various stakeholders. Over a period of time, RNAM has
achieved considerable success & visibility in the market and the significant credit for this
goes to the practice of strict adherence of Corporate Governance principles & ethical conduct
at the marketplace. The implementation and observance of ethical processes & policies and
good Corporate Governance has helped RNAM in standing up to the scrutiny of its domestic
as well as international investors and stakeholders.

22
5.9. RELIANCE NIPPON LIFE ASSET MANAGEMENT LIMITED
Reliance Nippon Life Asset Management Limited (formerly Reliance Capital Asset
Management Limited)(RNAM) is the asset manager of Reliance Mutual Fund (RMF).
Reliance Capital Limited and Nippon Life Insurance Company are the promoters of RNAM
and currently hold 85.75% of its total issued and paid-up equity share capital. Equity Shares
of RNAM are listed on BSE Limited and National Stock Exchange of India Limited.
Reliance Capital Limited is one of India’s leading and fastest growing; RBI registered
Non-Banking Finance Company (NBFC). And has its business interests in Asset
Management, Life Insurance, General Insurance, Private Equity, Proprietary Investments,
Stock Broking, & other activities in the Financial Services Sector.
Nippon Life Insurance Company (“NLI”) is a Japan’s leading private life insurer and
offers a wide range of financial products, including individual and group life and annuity
policies through various distribution channels, mainly using face-to-face sales channels for its
traditional insurance products. It primarily operates in Japan, North America, Europe and
Asia, and is headquartered in Osaka, Japan. NLI conducts asset management operations in
Asia, through its subsidiary Nissay Asset Management Corporation (“Nissay”), which
manages assets globally.

5.9.1. VISION
‘To be a globally respected wealth creator with an emphasis on customer care and a
culture of good corporate governance”.

5.9.2. MISSION
“To create and nurture a world-class, high performance environment aimed at
delighting our customers”.

5.10. RELIANCE COMMUNICATION

Reliance Communications is India's foremost and truly-integrated
telecommunications service provider, with a corporate customer base of over 40,000 Indian
and multinational corporations, including small and medium enterprises, and close to 300 of
the finest enterprise and carrier companies globally.

23
 Reliance Communications touches 90 per cent of the country's population, supported
by an OFC network of over 190,000 km. The Company also has a significant tower
infrastructure that caters to other telecommunications operators.
Spread across India's top 29 cities, Reliance Communications' data solutions for
Homes and Small Enterprises cater to buildings connected to the Reliance network. Reliance
Communications also owns the world’s largest private under-sea cable system under its
subsidiary Global Cloud Exchange, which offers a comprehensive portfolio of solutions
customized for Carriers, Enterprises and New Media Companies globally.
GCX's under-sea cable system spans more than 67,000 route km, which, seamlessly
integrated with Reliance Communications' 200,000 route km of domestic optic fiber
backbone, provides a robust Global Service Delivery Platform for Enterprises. GCX is
uniquely equipped to support businesses through the deployment of Next-Generation
Enterprise solutions across its Cloud Delivery Networks. Since its inception in December
2002, Reliance Communications has been revolutionizing the way the world communicates,
impacting not just lifestyles, but the very lives of its customers-globally

5.11. RELIANCE CAPITAL

Reliance Capital is one of India's leading private sector financial services companies
and ranks among the top 4 private sector financial services and banking groups, in terms of
net worth.
Reliance Capital has interests in asset management and mutual funds; life and general
insurance; commercial finance; equities and commodities broking; investment banking;
wealth management services; distribution of financial products; exchanges; private equity;
asset reconstruction; proprietary investments and other activities in financial services

5.12. RELIANCE INFRASTRUCTURE

Reliance Infrastructure Ltd (RInfra) is amongst the largest infrastructure companies,
developing projects through various Special Purpose Vehicles (SPVs) in several high growth
sectors within the infrastructure space i.e. Roads and Metro Rail.
RInfra is also the leading utility company having presence across the value chain of
power businesses i.e. Generation, Transmission, Distribution and Power Trading.
RInfra through its SPVs has executed a portfolio of infrastructure projects such as a
metro rail project in Mumbai on build, own, operate and transfer (BOOT) basis; eleven road

24
projects with total length of 1,000 kms on build. RInfra along with its wholly owned
subsidiary company generates over 940 MW of power through its five power stations and
distributes power to over 64 lakh consumers in Mumbai and Delhi. RInfra subsidiary
companies have commissioned three transmission projects by installing ten national grid
lines, being the first set of lines commissioned in India by the private sector.
RInfra also provides Engineering, Procurement and Construction (EPC) services for
developing power and road projects.

5.12.1. RELIANCE POWER

Reliance Power Limited, a part of the Reliance Group, is India’s leading private
sector power generation and coal resources company. The company has the largest portfolio
of power projects in the private sector, based on coal, gas, hydro and renewable energy, with
an operating portfolio of 5,945 megawatts.

5.12.2. RELIANCE METRO

As the country looks to create world-class infrastructure, Mass Rapid Transit System
is being developed across Indian metros to provide a fast, easy and comfortable commute
through high-speed trains. Reliance Infrastructure has partnered with MMRDA in Mumbai to
successfully implement a world-class mass rapid transport system for the city of Mumbai.
Versova-Andheri-Ghatkopar Corridor Mass Rapid Transit System (MRTS) project was
awarded by Mumbai Metropolitan Region Development Authority (MMRDA) through a
global competitive bidding process on Public-Private-Partnership (PPP) framework to RInfra
led consortium in 2007. This was the first metro project awarded in the country on a PPP
basis and entails design, financing, construction, operation and maintenance of about 12 km
elevated metro with 12 stations enroute

5.12.3. RELIANCE DEFENCE

Reliance Naval and Engineering Limited (RNAVAL) formerly Reliance Defense and
Engineering Limited / Pipavav Defense and Offshore Engineering Company Limited has the
largest engineering infrastructure in India and is one of the largest in the world. RNAVAL is
the first private sector company in India to obtain the license and contract to build warships.
RNAVAL operates India’s largest integrated shipbuilding facility with 662 M x 65 M
Dry dock. The facility houses the only modular shipbuilding facility with a capacity to build

25
fully fabricated and outfitted blocks. The fabrication facility is spread over 2.1 million sq. ft.
The shipyard has a pre-erection berth of 980 meters length and 40 meters width, and 2
Goliath cranes with combined lifting capacity of 1,200 tonnes, besides outfitting berth length
of 780 meters.

5.12.4. RELIANCE ENTERTAINMENT

Reliance Entertainment is the flagship motion picture arm of India's Reliance Group
with a significant presence in filmed entertainment (film production and distribution).
Reliance Group also has key interests in broadcasting and new media ventures.
Reliance Entertainment has built an impressive film production slate in Hindi, English
& other Indian languages, which it markets and distributes worldwide. Following its
association with IM Global, the company now benefits from an international sales team with
an excellent reputation and global presence dedicated to selling its Bollywood and regional
language slate.

26
 CHAPTER-6
OBSERVATION IN TRAINING

27
6. OBSERVATION IN TRAINING
Corporate culture refers to the beliefs and behaviors that determine how a company's
employees and management interact and handle outside business transactions. Often,
corporate culture is implied, not expressly defined, and develops organically over time from
the cumulative traits of the people the company hires. A company's culture will be reflected
in its dress code, business hours, office setup, employee benefits, turnover, hiring decisions,
treatment of clients, client satisfaction and every other aspect of operations.

6.1. Stocks
Wall Street is the only place that people ride to in a Rolls Royce to get advice from
those who take the subway." - Warren Buffett.
✓ The Definition of a Stock Plain and simple, stock is a share in the ownership of a
company. Stock represents a claim on the company's assets and earnings
✓ As acquire more stock, ownership stake in the company becomes greater.
✓ Whether say shares, equity, or stock, it all means the same thing.

6.2. BEING A SHARE HOLDER

• Holding a company's stock means that are one of the many owners (shareholders) of a
company and, as such, have a claim (albeit usually very small) to everything the
company owns.
• As an owner, are entitled to share of the company's earnings as well as any voting
rights attached to the stock

6.3. DEMAT
✓ A stock is represented by a stock certificate. This is a proof of ownership.
✓ In today's computer age, won't actually get to see this document because brokerage
keeps these records electronically, which is also known as holding shares "in
DEMAT". This is done to make the shares easier to trade.

6.4. SHARE HOLDER’S RIGHTS

• The shareholders can vote to have the management created or removed, at least in
theory

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 • The importance of being a shareholder is that are entitled to a portion of the
company’s profits and have a claim on assets. Profits are sometimes paid out in the
form of dividends
• The more shares own, the larger profit portion get
• Another extremely important feature of stock is its limited liability, which means that,
as an owner of a stock, is not personally liable if the company is not able to pay its
debts.

6.5. Why Companies Issue Shares?

✓ Why would the founders share the profits with thousands of people when they could
keep profits to themselves?
✓ The reason is that at some point every company needs to raise money
✓ To do this, companies can either borrow (Debt Financing) it from somebody or raise
it by selling part of the company, which is known as issuing stock (Equity Financing)

6.6. DEBT FINANCING

• A company can borrow by taking a loan from a bank or by issuing bonds
• Both methods fit under the umbrella of debt financing

6.7. EQUITY FINANCING

• Issuing stock is called equity financing
• Issuing stock is advantageous for the company because it does not require the
company to pay back the money or make interest payments.
• The shareholders get in return for their money is the hope that the shares will
someday be worth more than what they paid for them

6.8. IPO
The first sale of a stock, which is issued by the private company itself, is called the
initial public offering (IPO)

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6.9. Investment products
• Fixed deposit
• Recurring deposit
• Share market
• Mutual fund
• Insurance

6.10. TYPES OF SHARES

There are 2 types of Shares
➢ Preference Shares
➢ Equity Shares

6.10.1. PREFERENCE SHARES

• Preference shares give a fixed rate of dividend, which is currently around 8 to 12 per
cent per annum.
• Preferential shares give a right to their holders to receive dividends and repayment of
capital in case the company is wound up in preference to equity shareholders
Companies.
• To provide for such an eventuality, companies issue what are called cumulative
preference shares.

6.10.2. EQUITY SHARES

• Equity shareholders are the owners of the company.
• They are entitled to all the residual profits and accumulated reserves of the company
after all its obligations to its creditors and preference shareholders have been met.
• Equity shareholders form a bulk of the shareholders of a company. They exercise full
voting power.

6.11. THE STOCK MARKET

Successful investing is anticipating the anticipations of others. - John Maynard Keyne

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6.11.1. Indian financial market
• India is today one of the world’s fastest growing economies. By 2030, India will be
the world’s 3rd largest economy with projected GDP (PPP) at $13,716 bn.
• India is the 19th-largest exporter and the 10th-largest importer in the world.
• Over half of India's population is below 25 years. By 2020, the average age of an
Indian is expected to be 29 years.
• India has 122 billionaires with net assets of Rs 500 crore and above, as of December
2012.The number of HNIs in India is likely to more than double over the next 10
years, according to Knight Frank Wealth Report 2013.
• A market is a place where buyers and sellers come together to execute trades and
satisfy their needs. In simple terms "a financial market is a market where financial
instruments are bought and sold“
• The financial instruments can be in the form of cash or other assets, that represent a
form of cash. For e.g., fixed deposits, shares, bonds, etc.

6.12. Types of Mutual Fund

• Open ended
• Close ended

These markets are further categorized into:

• Primary Market
• Secondary Market.
• Primary Market: In this the manufacturer or the person directly holding the asset sells
or transacts with the end user.
• Secondary Market: In this there are a number of transactions that take place before the
end user getting the good that is required.

6.12.1. SECONDARY MARKET

• In Secondary market share are traded between two investors.
• The market where securities are traded after they are initially offered in the primary
market. Most trading is done in the secondary market.

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 • Examples of Secondary Market are in India are Bombay Stock Exchange (BSE),
National Stock Exchange NSE.

6.12.2. THE ROLE OF STOCK EXCHANGES

1. Raising Capital for Businesses the Stock Exchange provide companies with the
facility to raise capital for expansion through selling shares to the investing public.

2. 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 sectors such as
agriculture, commerce and industry, resulting in stronger economic growth and higher
productivity levels of firms.

Commodity Market
• SEBI
• MCX
• Membership company
• Customers

6.13. STOCK
1. Facilitating 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 for a company to grow by acquisition or fusion
2. Profit Sharing Both casual and professional stock investors, through dividends
and stock price increases that may result in capital gains, will share in the wealth
of profitable businesses
3. Government capital-raising 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

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 Stock Exchange whereby members of the public buy them, thus loaning money to
the government
4. Barometer of the economy at the stock exchange, share prices rise and fall
depending, largely, on market forces. Share prices tend to rise or remain stable
when companies and the economy in general show signs of stability and growth.

6.13.1. The stock exchanges in India

Bombay Stock Exchange Limited (the Exchange) is the oldest stock exchange in
Asia with a rich heritage. Popularly known as "BSE", it was established as "The Native Share
& Stock Brokers Association" in 1875

It is the first stock exchange in the country to obtain permanent recognition in 1956
from the Government of India under the Securities Contracts (Regulation) Act, 1956.The
Exchange's pivotal and pre-eminent role in the development of the Indian capital market is
widely recognized and its index, SENSEX, is tracked worldwide.

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 The National Stock Exchange of India Limited has genesis in the report of the
High Powered Study Group on Establishment of New Stock Exchanges, which recommended
promotion of a National Stock Exchange by financial institutions (FIs) to provide access to
investors from all across the country on an equal footing.

Based on the recommendations, NSE was promoted by leading Financial Institutions

at the behest of the Government of India and was incorporated in November 1992 as a tax-
paying company unlike other stock exchanges in the country. Its index is Nifty 50.

6.13.2. Smart Information

The market is weird. Every time one guy sells, another one buys, and they both think
they're smart.

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6.13.3. Index
• An index is a system used to make finding information easier
• In economics and finance, an index is a single number calculated from an array of
prices or of quantities
• Examples are a price index, a quantity index (such as real GDP), a market
performance Index (such as a labour market index / job Index or a stock market
index). Values of the index in successive periods (days, years, etc.) summarize level
of the activity over time or across economic units (regions, countries, etc.)
• Some investment funds (index funds) manage their portfolio so that their performance
mirrors (tracking) the performance of a stock market index or a sector of the stock
market
• There are different indexes in the Stock market
• Indian indexes are Sensex, S&P CNX Nifty, CNX Nifty Junior, CNX IT, Bank Nifty,
CNX 100, CNX Midcap, Nifty Midcap 50

6.13.4. NIFTY
• National Stock Exchange’s NIFTY is calculated using the "Free-float Market
Capitalization" methodology.
• As per this methodology, the level of index at any point of time reflects the Free-float
market value of 50 component stocks relative to a base period.
• The market capitalization of a company is determined by multiplying the price of its
stock by the number of shares issued by the company. This market capitalization is
further multiplied by the freefloat factor to determine the free-float market
capitalization.

6.13.5. Index - Scrip selection criteria

• Listed History:
The scrip should have a listing history of at least 3 months at the exchange.
Exception may be considered if full market capitalization of a newly listed company
ranks among top 10 in the list of BSE universe. In case, a company is listed on
account of merger/ demerger/ amalgamation, minimum listing history would not be
required.

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 • Trading Frequency:
The scrip should have been traded on each and every trading day in the last
three months. Exceptions can be made for extreme reasons like scrip suspension etc.
• Final Rank:
The scrip should figure in the top 100 companies listed by final rank. The
final rank is arrived at by assigning 75% weightage to the rank on the basis of three-
month average full market capitalization and 25% weightage to the liquidity rank
based on three-month average daily turnover & three-month average impact cost.
• Market Capitalization Weightage:
The weightage of each scrip in Index based on three month average free-float
market capitalization should be at least 0.5% of the Index.
• Industry Representation:
Scrip selection would generally take into account a balanced representation of the
listed companies in the universe of BSE.
• Track Record:
In the opinion of the Committee, the company should have an acceptable track
record.
• Index Review Frequency:
The Index Committee meets every quarter to discuss index related issues. In
case of a revision in the Index constituents, the announcement of the incoming and
outgoing scripts is made six weeks in advance of the actual implementation of the
revision of the Index.

6.13.6. USESES OF INDEX

✓ An index has practical applications in the world of finance
✓ Derivatives and index funds both make extensive use of indices. Both the NSE and
BSE have launched index futures based on the S&P CNX Nifty and BSE Sensex
respectively.
✓ The global market for index services and their applications is a multitrillion dollar
industry.

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 ✓ Indices also serve as a benchmark for measuring the performance of fund managers
and their respective funds. For gauging theperformance ofindividual sectors or
sectoral mutual funds, sector specific indices can be used.

1. Buying of shares
• The main way to purchase stock is taking help of a Stock Broker.
• Brokerages offer (supposedly) expert advice and can manage account; they also
charge brokerage for trades.
• With the internet came the explosion of online brokers. Thanks to them nearly
anybody can now afford to invest in the market.

2. Stock Prices do Change

• Stock prices change every day as a result of market forces. By this they mean that
share prices change because of supply and demand.
• If more people want to buy a stock (demand) than sell it (supply), then the price
moves up.
• Conversely, if more people wanted to sell a stock than buy it, there would be greater
supply than demand, and the price would fall.

To further complicate things, the price of a stock doesn't only reflect a company's current
value it also reflects the growth that investors expect in the future

3. The Farm of Animals

• The Bulls, if a person is optimistic and believes that stocks will go up, he or she is
called a "bull" and is said to have a "bullish outlook".
• The Bears, if a person is pessimistic, believing that stocks are going to drop, he or she
is called a "bear" and said to have a "bearish outlook.
• On Dalal Street, the Bulls and Bears are in a constant struggle. If haven't heard of
these terms already, undoubtedly will as begin to invest.
• Chickens are afraid to lose anything. They avoid the market completely and never
take any risk,

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 • Pigs are high-risk investors looking for the one big score in a short period of time.
Pigs buy on hot tips and invest in companies without doing their due diligence.

6.14. The 2 types of Players

1. Investors
"Investors" put their money into stocks, real estate, etc., under the assumption
that over time, the underlying investment will increase in value, and the investment
will be profitable. This buy-and-hold long term strategy is passive in nature.

2. Traders
“Traders" take a proactive approach to their investing. Traders have a defined
plan and invest with one goal, to put their capital into the markets and "profit."

6.14.1. Risk in Stocks

• It must be emphasized that there are no guarantees when it comes to individual stocks.
Some companies pay out dividends, but many others do not. And there is no
obligation to pay out dividends even for those firms that have traditionally given
them.
• Without dividends, an investor can make money on a stock only through its
appreciation in the open market.
• Although risk might sound all negative, there is also a bright side.
• Taking on greater risk demands a greater return on investment. Over the long term, an
investment in stocks has historically had an average return of around 10-15%.

6.14.2. Share Trading Risky

✓ Mr. Mehta had an investable surplus of 10,000 in the beginning of 1994. He intended
to put this money in a fixed deposit where he would get 10% interest on his FDs.
✓ He shared his thoughts with Mr. Shankar, who advised him to ‘invest’ the same in the
Stock Market.
✓ In February 1994, Mr. Mehta made a stock market investment of ` 10,000 by buying
shares of Infosys, which, at that time were going at Rs 450 each. On Feb 29, 2012, he
decided to sell all his shares. On that day, they were trading at a whopping Rs 2,883.

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6.14.2.1. That Not All
• But wait! That's not all… see, just the difference in value is not the only way Mr.
Mehta gained from his shares. His overall profit was much higher. To start with:
• Dividends He earned dividends on his shares from 1999 onwards.
• Secondly, it was Bonus Time! Since the company declared a 1:1 bonus in 1994, Mr.
Mehta immediately doubled his number of shares. Subsequent bonus shares in 1997,
99, 2004 & 06 increased the number - and absolute value - of his shares.
• Thirdly, there was a Share split… One becomes two! In 2000, Infosys declared a 2-
for-1 split.

6.14.2.2. Total Returns

• 89,079.15% Returns.
• No, that’s not a typo! will now, want to know how do they arrive at this incredible
figure?
• Mr. Mehta’s initial investment was 10,000. On this, he earned a total dividend of 7,
99,387.
• While he initially had 22-shares, the bonuses and split gave him a new total of 2,816
shares. He sold these 2,816 shares at a new, phenomenally improved value / selling
price of 2,883 equaling to 81, 18,528.
• So his total earning comes to: 7,99,387 + 81,18,528 = 89,17,915 minus his initial
buying amount of ` 10,000 at an astounding pure profit of 89,07,915 Calculated on an
investment of ` 10,000, that’s a total return on investment of a whopping 89,079.15%
jump over 17 years.

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6.14.2.3. Investment Pyramid

• As it is evident from the chart Above, when a person has surplus money, the same is
put into a Bank Account in the forms of Fixed Deposits or merely in the Savings Bank
Account. This is the Foundation
• From here, the individuals graduates to putting his/her money into certain Postal
Schemes like NSC, PPF and other Debt Instruments like Bonds - this is the Income
stage
• The next level is Security where a person invests in Gold.
• And then Growth happens with investing in Mutual Funds.
• The tip of the iceberg is for Wealth Creation, where monies are ploughed by investing
in shares through the Stock Markets.

6.14.2.4. The Risk

Is it really worth the risk when there are safer investment options available?

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 There are plenty options, of course, and should always have a well-rounded
investment portfolio. But the flip side to the risk involved, is that the stock market
outperforms all other investment avenues in the long run. Even better, it tends to win the race
against inflation as well.

6.14.3. Historical Risk Return Relation in Equity Markets

Sometimes people do not want to invest in the equity markets as they feel it is very
risky!!! Is it really so? What’s the Risk?!?

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• Risk Return relation in equity markets.
• In a 3-years horizon, one would have made profits 18-times out of 20 with an average
profit of 18.80%
• In a 10-years horizon, one would have made profits all the times with an average
return of 12.96% per annum
• And the best part dividend income and tax benefits are additional

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6.15. DEMAT ACCOUNT APPLICATION FORM

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6.16.ONOMINATIONOFORM

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CHAPTER-7
LEARNING

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7. Learning
The Learning based on the study on financial investments in Reliance Securities
Limited. The following are some of the important learning of the study they are:
➢ Gained the industry knowledge first hand from the organization and
professionals.
➢ Studied about the fundamentals of mutual fund distributions and key functions
of reliance securities.
➢ Enlightened about the investments in share markets.
➢ Understood the functions of equity and commodity market.
➢ Comprehended the basics of stock market and trading.
➢ The process of stock exchanges in india is penetrated in reliance securities
limited.
➢ Grasped the procedures for opening demat account in.
➢ Learnt the fundamental concepts for online trading.
➢ The importance of customer service through phone and mail has been
absorbed.
➢ Absorbed the process of approaching and convincing the customers to invest
in share market.

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 CHAPTER-8
SUGGESTIONS

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8. SUGGESTION

The suggestions based on the study on financial investments in Reliance Securities

Limited are as follows:

1. More plans can be made that may involve less period of payment in reliance securities
Ltd.
2. Reliance securities Ltd. reach can be increased through social media, television,
newspapers, etc.
3. The Systematic Investment Plans of reliance securities Ltd. can have a range of
premium to suit every pocket size.
4. The advertisements of reliance securities can cover the benefits of their plans and
what differentiates their plans from those of other companies.
5. The reliance securities Ltd. may have more offices at smaller towns and uncovered
segment in the cities.
6. The reliance securities Ltd. can tap the young crowd and convince them for
purchasing the same.

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CHAPTER-9
CONCLUSION

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9. CONCLUSION
• Stock means ownership. As an owner, have a claim on the assets and earnings of a
company as well as voting rights with shares.
• Stock is equity, bonds are debt. Bondholders are guaranteed a return on their
investment and have a higher claim than shareholders. This is generally why stocks
are considered riskier investments and require a higher rate of return.
• Can lose all of investment with stocks. The flip-side of this is can make a lot of
money if invest in the right company.
• The two main types of stock are Equity and preferred. It is also possible for a
company to create different classes of stock.
• Stock markets are places where buyers and sellers of stock meet to trade. The BSE
and the NSE are the most important exchanges in the India.
• Stock prices change according to supply and demand. There are many factors
influencing prices, the most important of which is earnings.
• There is no consensus as to why stock prices move the way they do.
• To buy stocks can use the services of a Broking House
• Bulls make money, bears make money, but pigs get slaughtered!

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BIBLIOGRAPHY

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BIBLIOGRAPHY
Websites
[1] https://www.moneycontrol.com
[2] https://www.reliancesmartmoney.com/
[3] https://en.wikipedia.org/wiki/Reliance_Securities
[4] https://www.managementstudyguide.com/financial-investment.htm
[5] https://en.wikipedia.org/wiki/Reliance_Capital
[6] https://trade.rsec.co.in/
[7] https://rmoney.rsec.co.in/

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