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laxmikant singh REG.NO =35 A REPORT SUBITED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE MASTER IN e-BUSINESS ADMINISTRATION(MeBA)COURSE
INDIAN INSTITUTE OF e-BUSINESS MANAGEMENT WAKED PUNE-57 2008-2010
This research was made possible as per the requirement of the MBA course under Indian Institute Of e-Business Management .Many individual took interest and were supportive of my effort. In fact, many have given me their time generously and it is not possible to mention all of them here and there act of goodness. I take the opurtunity to place and record my deep sense of gratitude to all who have helped me in completion of my study I express my heartiest thanks to Mr. Manish shukla, Mob.No (9325101044) (Central Head) of capital market of Reliance Money, who took keen interest towards my project and provided me with deep insight on R.MONEY I am deeply indebted to my mentor and guide Mr.Tushar Saboo, assistant senior agent in reliance money. I would be failing in my duties if I don’t express my sincere gratitude to my parents for their constant support and guidance. I also humbly thanks my friend and batch mates .Ankit Agarwal for his generous participation in the data collection process.
This training undergone at reliance money(pune) within a period of nine (06.05.2009 to 06.07.2009) has imparted me in depth of knowledge on various aspect of corporate governance and marketing channel. Cost effectiveness is the buzz word today . so, efficient use of working capital is important from the point of view of both profitability and liquidity. An effort has been made in the present study “sales and marketing “ with respect to Reliance Money(pune), to understand the different financial and marketing implication and to make and in-depth study of various element of brokerage charges in reliance money(pune) so as to come out with an effective result of the study and simultaneously to suggest scope for further improvement in the management working capital
DECLARATION I here declare that this project entitle work with sales and marketing is a record Of independent work carried out by me under the guidance of tushar saboo senior Supervisor(marketing) as per the curriculums requirement in master in e-business Administration of master in e-business management Name : Nitin Nishad Specialization : Marketing & Finance Indian institute of e-business management (pune) 4 .
5) To find and try to bridge the gap between the expectations and experiences of the customers in case of dissatisfaction. 7) To market and to promote the products of RELIANCE MONEY. It represents a fact having actual existence of outside the mind or a goal for which the study is to be conducted. It lays down a well-defined path between start and the end and that is the goal. 2) To know the various norms adopted by RELIANCE MONEY. It is an action.OBJECTIVES OF THE STUDY It is said that an objective well defined is half done. 8) To generate new business opportunities for RELIANCE MONEY by opening up franchisees. a purpose. The objective of our study is:1) To know the various functions which are conducted for day-to-day operations in RELIANCE MONEY. 5 . 4) To know whether the services provided by RELIANCE MONEY is able to attain its customer’s satisfaction or not. 6) To know how the branch functions in terms of sales and operations. Objective serves as torchlight in a project. As also an objective is well defined and it is important for the research study that a scholar undergoes. 3) To know the various products and services rendered to its customers. Thus in order to make sure that the proper survey ensures defining clear-cut objective and outline is a prerequisite. which is directed to a person to conduct a study.
6 .METHODOLOGY ADOPTED Whether it is an army attack to the enemy air base or the way to the theme park we have to proceed in a very cautious and a planned way. Reliance Money. SECONDARY DATA: The secondary data. In dealing with any real life problem it is often found that data at hand is adequate. hence it becomes necessary to collect data rather appropriate. how to do in a perfect way and what should be the procedure so that we are not lost in a way is dwelled by methodology adopted. In this project. We know what to do. various journals. I have collected from the various websites of reliance money.e. Secondary sources PRIMARY SOURCE: I have gathered information about our project from the interaction with the customers of our company i. The sampling method used was basically convenience sampling and most of the calls made were cold calls made on the generated database of recipients of other companies. There are several ways of collecting data while doing the project or any survey. One mistake could give us heavy losses. magazines etc. Primary sources 2. I have collected from two sources that are: 1.
folders and soft copy stored in system. Finally compiling the primary and secondary data gathered. 7 . documents. Inquiring and looking into the practicalities of work environment to have a correct insight of process adopted. then making a study of option available. Gaining information from files. Seeking information from the staff and taking their views in consideration.The methodology adopted in the procedure followed in order to give the projects its shape is: Having a proper understanding of working of a financial company. Browsing the website of various financial institutions and BSE and NSE for the necessary information required.
rectification of the form. These changes often result from events which alter the establishment status quo in some way such as the introduction of new technology process changes organization merges or restructuring. During my project we also came to know about the customer service which the company provides to its customers. internet. handling the queries of the customers. Life insurance. and this report also presents a brief idea about the issue of credit cards. filling forms. 8 .e.EXECUTIVE SUMMARY This report is structural as well as procedural study about the extent of flexibility and transparency present inside the framework of financial industry. etc. Derivatives. gaining knowledge about the various products of reliance money like IPO. verification of the form. Commodities. Organization is constantly changing. I have collected primary data by interactive sessions with the working officials of the company and secondary data are collected which are more qualitative in nature from the manuals. corporate articles and other preserved data by the company. In this period of our training we have learnt all the operations done by reliance money i. Reliance money in its span of two years has undergone many innovations whether it is in its field of technologies or whether it is customer satisfaction. As far as data collection is concerned we have both primary as well as secondary data in this report. opening of D-MAT account. checking the status of the clients.
Reliance money is also into life insurance which provides a very good opportunity to the customers by giving them a life cover and securing the future of their families. It provides online share trading facility to the customers. As I dealt with both of these two products of reliance money so I got a good exposure about the general expectations of a customer and what he usually experienced while dealing into investment products. To meet these expectations reliance money is into the concept of franchisees where private franchisees are given to individuals so that the coverage area of reliance money can be increased and word load on employees can be decreased in order to increase Relationship Management. 9 .Reliance money is equally aware of the needs of its customers and helps them in giving meaning and content. This company has steadily progressed over the years from strength to strength.
. . The Answer is “RELIANCE MONEY” 10 . . . Whenever it’s a Question of Your MONEY… . . . . .Company Profile: Reliance Money Ltd. . .
affordable by all individual investors in India. adopt the best international practices in customer service. ensure sustained value addition to all stake holders and to uphold Corporate Value & Corporate Governance. their dreams we will leverage our strength in executing complex global scale projects to make leading edge in broking services. be the most innovative in product development.Vision Empowering everyone live. We will also generate value for our capabilities beyond Indian borders while enabling millions of Indian’s knowledge workers to deliver their services globally. Mission Our Mission is to keep the customer satisfaction by Creating unmatched value for everyone through dependable. transparent and profitable broking services as focal point of all our operations. effective. Guiding Principles Customer Care and Satisfaction Corporate Governance Creativity and Innovation Competitiveness 11 . We will offer unparalleled value to create investor delight and enhance business productivity. establish presence all over India.
in terms of net worth. private equity and proprietary investments. Every project taken up by the company turns into a golden project. Reliance Capital Ltd is a part of the Reliance . Reliance Capital has interests in asset management and mutual funds. and ranks among the top 3 private sector financial services and banking companies.Anil Dhirubhai Ambani Group. Reliance Capital has a wide Structure that is as follows: RELIANC E CAPITAL MUTUAL FUND LIFE INSURAN CE GEN. which we can call as. Reliance Capital is one of India’s leading and fastest growing private sector financial services companies. life and general insurance. INSURAN CE RELIANCE MONEY CONSUME R FINANCE SALES & DISTRIBUTI ON LEGAL HUMAN RESOURCE MARKETIN G PRODUCT TEAM EAST WEST NORTH 12 SOUTH .ABOUT RELIANCE CAPITAL We all know the effect of the word Reliance on us. A company which has entered almost every arena of business and created wonders. The Midas Touch. stock broking and other activities in financial services. The company has something.
Anil Ambani Mr. in terms of net worth.ABOUT RELIANCE MONEY: Reliance Money is a part of Reliance Capital that comes under Anil Dhirubhai Ambani Group (ADAG). Reliance Money is the electronic transaction platform associated with Reliance Capital. OF BRANCHES NO. It is a distribution and a broking house that provides its customers with Online as well as Offline Trading Facility. 2007 Reliance Money offers a comprehensive platform. offering an investment avenue for a wide range of asset classes. one of India's leading and fastest growing private. Its endeavor is to change the way India transacts in financial markets and avails financial services. 13 . CHAIRMAN CEO STARTED SINCE CAPITAL NO. GROUP CO. OF FRANCHISEES INDUSTRY TYPE PRODUCTS More than 150 Branches 700 Share Broking Firm Equity IPOs Derivatives Commodities Trading Mutual Funds Insurance Offshore Investment Anil Dhirubhai Ambani Group Mr.Sandeep Bandopadhyay Publicly launched On: April 11. Reliance Money offers a single window facility. ranked amongst the top 3 private sector financial services and banking companies.
Equity and Commodity Derivatives. Reliance Money is the most cost-effective. PRODUCT PORTFOLIO OF RELIANCE MONEY: Initial Public Offering – IPO: Apply in Initial Public Offers (IPO’s) without going through the hassles of filling ANY application form or paperwork. Life Insurance and General Insurance products. When an unlisted company makes either a fresh issue of securities ( Through primary markets ) or an offer for sale of its existing securities or both for the first time to the 14 . Offshore Investments. IPOs. convenient and secures way to transact in a wide range of financial products and services.enabling us to access. Mutual Funds. amongst others Equity.
currencies. Derivative: Don’t dread derivatives anymore. interest rates and market indexes. but can also be done by large privately-owned companies looking to become publicly traded. a security whose price is dependent upon or derived from one or more underlies assets. Its value is determined by fluctuations in the underlying asset. the issuer obtains the assistance of an underwriting firm. The first sale of stock by a private company to the public. For the first time track your positions online. Most derivatives are characterized by high leverage. Also referred to as a “public offering”. best offering price and time to bring it to market. just about anything can be used as an underlying asset. The most common underlying assets include stocks. Futures contracts. The derivative itself is merely a contract between two or more parties. options and swaps are the most common types of derivatives. 15 . Choose the contract and say go. which helps it determine what type of security to issue (common or preferred).public then that is known as an IPO. in real time. younger companies seeking capital to expand. In finance. commodities. In an IPO. IPO’s are often issued by smaller. Because derivatives are just contracts. forward contracts. bonds.
ii. the investor could purchase currency futures to lock in a specified exchange rate for the future stock sale. Options are consist of two things: i. Options: A financial derivative which represents a contract sold by one party (option writer) to another party (option holder). B. at a predetermined future date and price.Derivatives are generally used to hedge risk. The contract offers the buyer the right. Derivatives are divided into basically two parts: • • Futures Options A. Call is an option contract giving the owner the right (but not the obligation) to buy a specified amount of an underlying security at a specified price within a specified time. but not the obligation. but can also be used for speculative purposes. 16 . To hedge this risk. Futures: A financial contract obligating the buyer to purchase an asset (or the seller to sell an asset). Call Option Put Option a) Call: It is the period of time between the opening and closing of some future markets wherein the prices are established through an auction process. such as a physical commodity or a financial instrument. to buy (call) or sell (put) a security or other financial asset at an agreedupon price (the strike price) during a certain period of time or on a specific date (exercise date). they are standardized to facilitate trading on a futures exchange. Futures contracts detail the quality and quantity of the underlying asset.
b) Put: Put is an option contract giving the owner the right. The Financial Product that helps in this is Insurance. to sell a specified amount of an underlying asset at a set price within a specified time. Insurance is a 17 . Click here to get started There are good times and bad times during every stage of our lives. but not the obligation. The buyer of a put option estimates that the underlying asset will drop below the exercise price before the expiration date. and being financially prepared to face all kinds of situations makes the journey of life a lot easier and certainly more. Insurance: Take advantage of investing in Insurance products without going into the hassles of doing any paperwork.
contract (policy) in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. Retirement Reliance Golden Years Plan Employee Benefit Plans 1. Savings (Endowment) Reliance Endowment Plan Reliance Special Endowment Plan Reliance Cash Flow Plan Reliance Child Plan Reliance Whole Life Plan Reliance Connect 2 Life Plan 2. The named beneficiary receives the proceeds and is thereby safeguarded from the financial impact of the death of the insured. Life Insurance Products Offered by Reliance Money : Individual Plans 1. Life insurance products offer comprehensive financial. Insurance is of two types: • • Life Insurance General Insurance A. Risk (Protection) Reliance Group Term Assurance Policy Reliance EDLI Scheme 2. Solutions which besides offering financial security also provide opportunity for saving. Life Insurance: This is the protection against the loss of income that would result if the insured passed away. Pensions Reliance Group Gratuity Policy Reliance Group Superannuation Policy 18 . The company pools clients’ risks to make payments more affordable for the insured. The goal of life insurance is to provide a measure of financial security for your family after you die. investment & tax planning.
under the Ready-made Plan option Freedom to decide your own fund mix based on your risk profile under the Tailormade Plan Regular. Risk / Protection Reliance Term Plan Reliance Simple Term Plan Reliance Special Term Plan Reliance Credit Guardian Plan Reliance Special Credit Guardian Plan The two main Individual plans are: 1. Reliance Automatic investment Plan: Key Features: • • • • • • Two plan options to choose from Ready-made and Tailor-made Life Stage asset allocation to ensure automatic change in investment patterns. Unit Linked Reliance Automatic Investment Plan Reliance Money Guarantee Plan Reliance Market Return Plan 4. single premium paying options Unmatched flexibility through our ‘Exchange Option’ Liquidity in the form of partial withdrawal 19 . limited.Reliance Golden Years Plan Value Reliance Golden Years Plan Plus 3.
• Option to avail of Accidental Death Benefit. The Fund Value is the total value of units that you hold in the fund/ funds. Accidental Total. whereas the Fund Management Charge is priced in the Unit Value. The Mortality Charges and Policy Administration Charges are deducted through cancellation of units. Premium Disability and Term Insurance riders The Key benefits • • • • A smart plan which adapts to your changing risk profile with increasing age Option to lower the average cost of units through systematic transfer of your funds Flexibility to switch between funds and plans Options for additional Insurance cover available through riders How does this Plan work? As a customer you will have the liberty to choose between the Ready-made and Tailormade Plan options. The premium contributions made by you. net of Premium Allocation Charges and Sum Assured Related Charges are invested in fund/funds of your choice and units are allocated depending on the price of units for the fund/funds. Reliance Automatic Investment Plan at a glance Basic Plan Age at Entry Age at Maturity Premium Paying Minimum 30 days 18 years last birthday 5 years Maximum 65 years last birthday 80 years last birthday 30 years 20 .
Capital Guarantee is available on both the basic premiums as well as on top-up premiums • • • Unique Return Shield feature to protect your returns Choice to invest from 3 pre-packaged investment fund options • • • Unmatched flexibility through our ‘Exchange Option’ to move between the Reliance Money Guarantee suite of products offered. The Fund Value is the total value of units that you hold in the fund. Money Guarantee Plan Key Features • Capital Guarantee: The sum of all premiums paid is guaranteed on maturity or on death before the maturity.Term Min Sum Assured Max Sum Assured Regular / Limited Premium: Annualized Premium for 5 years or Annualized Premium for half of the policy term. The 21 . whichever higher Single Premium 125% of the single premium amount No Limit 2. as you grow up the ladder Liquidity in the form of partial withdrawals from top-up fund Option to package with Accidental Death & Disability and Term Insurance riders How does this Plan work? The premium contributed by you net of Premium Allocation Charges and Miscellaneous Charge is invested in fund option of your choice for a specified period of time as selected by you and units are allocated depending on the price of units for the fund/funds.
It enables employers / trustees with more than 20 employees to outsource the management of their employees’ Gratuity funds and the related administration to Reliance Life Insurance Company Limited. b) Reliance Group Gratuity Plan. Subject to approval by the Provident Fund Commissioner. are payable over and above the premium for the basic Policy. the contract may be renewed. Growth and Balanced Funds. The Mortality Charges and Policy Administration Charges are deducted through cancellation of units whereas the Fund Management Charge is priced in the Unit Value. namely Capital Secure.Policy has a minimum Guaranteed Fund Value which is equal to total of all premiums paid (excluding any additional and extra premiums if any). if selected. 22 . The premiums for riders. At the end of the year. The amount of top-up premiums paid is also guaranteed on death provided there is no partial withdrawal. The amount of top-ups premium is guaranteed on maturity provided the top-ups premium was paid at least 10 years before the date of maturity and there is no partial withdrawal. The benefit is payable on the happening of the contingency during one year. this Policy can be used as a replacement for the Employees Deposit Linked Insurance Scheme under the Provident Fund Act. This is a unit linked group Gratuity product with three different fund options. The two main Employee Benefit Plans are: a) Reliance Group Term Assurance Policy: Reliance Group Term Assurance Policy is a one year Renewable Term Assurance contract. The Sum Assured under the Policy is fixed on the basis of the selected annual premium and Policy Term. Employers looking for a comprehensive professionally administered term assurance cover for their employees. to be payable on survival to maturity or earlier death.
primarily used to hedge against the risk of a contingent loss of many articles and nominal things.B) General Insurance: General Insurance is a form of risk management. For example. auto insurance would typically cover both property risk (covering the risk of theft or damage to the car) and liability risk (covering legal claims from causing an accident). may be done for follows: • • • • • • Automobile Insurance Aviation Insurance Equipment Breakdown insurance Business insurance Crop Insurance Crime Insurance Credit Insurance etc.I.G. This is a single policy that may cover risks in one or more of the categories set forth below. Products Offered by Reliance General Insurance: Health • • • Individual Mediclaim Group Mediclaim The policy covers 23 .
Yet. these unforeseen circumstances can take a toll on your savings. illnesses do occur. subject to terms and limits. The cover provided is worldwide. Personal Accident Personal Accident The policy provides for payment of compensation in the event of accidents leading to death or disablement of the insured person. despite your best efforts. Policy also provides for reimbursement of expenses incurred for carriage of dead body and education grant for children (upto a maximum of two children) of the primary insured person.Reliance Health Wise Policy Seeing your family in the pink of health ranks highest in priority for you. To ensure that you don’t need to spend your hard earned money on treatment of any such illness. we have a Policy that offers you all the financial support that you need. With the spiraling cost of health care. on payment of 20% of extra premium. The disablement may be of permanent total or permanent partial or temporarily total in nature. This policy can be extended to cover actual medical expenses arising out of the accident upto an amount not exceeding 40% of the compensation paid in settlement of a valid claim under this Policy or 20% of the relevant Capital Sum Insured whichever is less. This policy can be issued to persons in the age group of 5 years to 70 years and can be extended to cover persons beyond the age of 70 years and upto 80 years on payment of suitable additional premium. 24 .
Employees of a Firm/Company ( i. Death 100 % of Sum Insured b. Permanent Total Disablement 100 % of Sum Insured c. Policies can be issued on named or unnamed basis. b. Loss of two limbs/Two eyes or one limb and one eye 100 % of Sum Insured d. Loss of one limb or one eye 50 % of Sum Insured e. Members of an institution/society/association/club ( i.e with no employeremployee relationship).Group Personal Accident The policy is applicable to a. a.e with employer-employee relationship). The policy covers Physical loss to an insured person due to an accidental injury anywhere in the world and pays for death or disablement . Permanent Partial Disablement Varies from 1% to 75% of Sum Insured depending on the disablement Temporary Total Disablement 1 % of Sum Insured per week subject to a maximum of Rs 5000 per week for a maximum period of 100 weeks Fire • • • • • • Standard Fire and Special Perils Consequential Loss (Fire) Industrial All Risks Engineering Erection All Risks/Storage-cum-Erection Contractor’s All Risks Contractor’s Plant and Machinery 25 .
• • • •
Machinery Breakdown Insurance Machinery Loss of Profits Insurance Boiler and Pressure Plant Insurance Electronic Equipment Insurance Marine
Marine Cargo Insurance Motor
Private Car Comprehensive Liability
• • • • • •
Directors and Officers Liability Public Liability (Act) Public Liability Product Liability Professional Indemnity Workmen’s compensation
Travel • • • • Individual and Family Asia Student Corporate
Miscellaneous • • • • • • • Industry Care Commercial Care Office Package Fidelity Guarantee Burglary and Housebreaking Money Insurance Householder’s Package
Trading made simple. Use our world-class platform and research to invest online. Leverage up to 5 times of the available funds for intra day
Equity is Stock or any other security representing an ownership interest. Equity is a term whose meaning depends very much on the context. In general, you can think of equity as ownership in any asset after all debts associated with that asset are paid off. An Investor can invest his money in Equity in two ways i.e. Online or Offline and for both, he needs a D-Mat A/C.
An investment vehicle which is comprised of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market securities and similar assets. Mutual funds are operated by money mangers, who invest the fund’s capital and attempt to produce capital gains and income for the fund’s investors. A mutual fund’s portfolio is structured and maintained to match the investment objectives stated in its prospectus.
26. Reliance Mutual Fund constantly endeavors to launch innovative products and customer service initiatives to increase value to investors.314 crore as on June 30. 2006. Reliance Mutual Fund has a presence in over 80 cities across India. Invest and track the performance of the schemes you have invested online Reliance Mutual Fund.Reliance Mutual Funds: Investing is just a click away. Reliance Mutual Fund schemes are 29 . a part of the Reliance .Anil Dhirubhai Ambani Group (R-ADAG) is one of the fastest growing mutual funds in the country. Reliance Mutual Fund offers investors a well-rounded portfolio of products to meet varying investor requirements. No more paper work. an investor base of over 2 million and manages assets over Rs.
Under the Dividend Plan. the Scheme 30 . through redemption at applicable NAV of the units held by them. B. looking at bringing stability in their portfolio should invest in Reliance Vision Fund. The income earned on the Growth Plan’s corpus will remain invested in the Growth Plan.. highly liquid stocks with good fundamentals and long-term prospects. Long-term investors. Accordingly.managed by Reliance Capital Asset Management Ltd. The fund invests in large cap. The Growth Plan has two options : • Growth Option : Under this Option. Choice of Plans: A. • Bonus Option: The Growth Plan has a Bonus Option. the scheme will not declare dividends under the Growth Plan. a wholly-owned subsidiary of Reliance Capital Ltd. Dividend Plan: The Dividend Plan has been designed for investors who require regular income in the form of dividends. if any. Investment Objective of Reliance Vision Fund: The primary investment objective of the Scheme is to achieve long-term growth of capital by investment in equity and equityrelated securities through a research-based investment approach. Growth Plan: The Growth Plan is designed for investors interested in capital appreciation on their investment and not in regular income. Reliance Vision Fund: It was launched in October 1995. there will be no distribution of income and the returns to the investor is only by way of capital gains/appreciation.
Systematic Investment Plan: Customer can invest on a Monthly or Quarterly basis.1/thereafter. Dividend Plan has two options : • Dividend Payout Option: Under this option the Dividend declared under the dividend plan will be paid to the unit holders within 30 days from the declaration of the dividend. a minimum sum of Rs. B. D.100/thereafter.term. 500/. if any. Equity/Growth Schemes:-The aim of growth funds is to provide capital appreciation over the medium to long. a minimum sum of Rs. 1500/.and in multiples of Rs.or Rs. • Dividend Re-investment Option: The Dividend Plan has a Reinvestment Option whereby the dividend distributed under the plan will be automatically reinvested at the ex-dividend NAV on the transaction day following the date of declaration of dividend and additional units will be allotted accordingly. 500/.respectively and in multiples of Re.will Endeavour to make regular dividend payments to the unit holders. Systematic Withdrawal Plan: You can withdraw from your investments on a Monthly or Quarterly basis. Schemes Offered by Reliance Money: 1. These Schemes are: • • Reliance Equity Fund Reliance Growth Fund 31 . Dividend will be distributed from the available distributable surplus after the deduction of TDS and applicable surcharge.
g. These schemes are: • • • Reliance Banking Fund Reliance Pharma Fund Reliance Diversified Power Sector Fund 32 . These schemes are: • • • • Reliance Interval Fund Reliance Income Fund Reliance Liquid Fund Reliance Liquid Plus Fund • • • • • Reliance Fixed Horizon Fund III Reliance Monthly Income Plan Reliance Short Term Fund Reliance Fixed Maturity Fund Series-I Reliance Fixed Maturity Fund Series-II etc. 3. Petroleum stocks. Debt/Income Schemes: . E. Fast Moving Consumer Goods (FMCG). etc.• • • • Reliance Vision Fund Reliance Tax Saver (ELSS)Fund Reliance Equity Opportunities Fund Reliance Long Term Equity Fund etc. Sector Specific Schemes:. Software.These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents. Pharmaceuticals.The aim of income funds is to provide regular and steady income to investors. 2.
• Reliance Media & Entertainment Fund Commodities 33 .
It is the contract and this underlying standard that define the commodity. sugar. of uniform quality. wheat. that were produced in large quantities by many different producers. We offer • • Lowest cost of trading Trade till 11:30 in the night A commodity is something that is relatively easily traded. ethanol. but also so-called “commoditized” products such as personal computers. or silver. rice. Commodities exchanges include: • Chicago Board of Trade 34 . that can be physically delivered. It is a characteristic of commodities that prices are determined on the basis of an active market. diamonds. crude oil.In a market that's growing at 400% per annum. In the original and simplified sense. and that can be stored for a reasonable period of time. commodities were things of value. Examples of commodities include not only minerals and agricultural products such as iron ore. aluminum. the items from each different producer are considered equivalent. rather than by the supplier (or other seller) on a “cost-plus” basis. not any quality inherent in the product. coffee. gold.
• • • • Euronext. Multi Commodity Exchange Offshore Investment Offshore investment is the keeping of money in a jurisdiction other than one’s country of residence. a global player in the online derivatives trading segment. the financial services arm of the Anil Dhirubhai Ambani Group.or “onshore”. Offshore jurisdictions are a commonly accepted solution to reducing excessive tax burdens levied in most countries to both large and small scale investors alike.liffe London Metal Exchange New York Mercantile Exchange. to bring overseas investment products to Indian investors. Locations favored by investors for low rates of tax are known as offshore financial centers. Scheme Offered By Reliance Money: Reliance Money. is partnering with UK-based CMC Markets. Although this may be the case. This tie-up will enable customers’ of Reliance Money to gain access to several offshore products including —foreign 35 . The advantage to this is that such operations are both legal and less costly than the solutions offered in the investor’s country . Selected offshore domiciles are superficially viewed by some as havens used by to conceal or protect illegally acquired money from law enforcement in the investor’s country. legitimate investors also take advantage of higher rates of return or lower rates of tax on that return offered by operating via such domiciles.
22.00.000.000 &Gold Credit Card – (>)Rs. The central bank currently permits a single Indian resident to invest up to $50.Silver and Gold. If the investor wants to sell.000.reliance credit cards come free for life. an investor with Reliance Money can buy Corus shares through an account created for him or her by CMC. and Zero Fuel Surcharge at IOC Petrol Pumps. and provide a host of benefits and reward points as part of a unique loyalty program. Reliance credit cards also offer complimentary vouchers for usage at Reliance World Outlets and Adlabs Multiplexes. Free towing of Vehicles.000 (Rs. currency and commodities within the RBI-mandated limits. In addition to usual benefits available with regular credit cards. For instance. places an order and the shares in the account are offloaded in the market. Hospital Allowance. which has been raised from the earlier $25.30. Highlights: Free for Life Card. he follows the same procedure. Credit Cards offered by Reliance Money: Reliance-Anil Dhirubhai Ambani group has joined hands with Citi bank to launch reliance credit card.3.5 lakh) overseas per year. 36 . Cash Advance Facility. Reliance Credit Cards are available in two categories . Limit:. The shares will then be credited to the account. Free Utility Bill Payment Facilities.equities.Silver Credit Card – up to Rs.
37 .e.100 each with the Reliance Silver Card and worth Rs.500 per day. Gift Voucher of Rs. Pay bills of Reliance ADA group companies-Reliance Post Paid Bills. Reliance Money provides free Gift Vouchers to its Credit Card Holder i. free alerts. Recharge of Mobile Pre-paid Cards and also for other utility companies on an on going basis by signing up once.200 each with the Reliance Gold Card. Customer can opt for free Photo Credit Card for added Security. After that he does not have the liability for increasing credit limit in his card. before having Credit Cards provided by Reliance Money. Customer just need to give a call at the helpline no.e. Reliance Money Provides with Zero Loss card Liability i. on hospitalization with the Reliance Gold Card.200 with Silver Credit Cards. Insurance Premier. Customer need to have another credit card (except that of Citi bank). and thus he gets a reference no. free email statements.400 with Gold Credit Cards and Gift Voucher of Rs. Reliance Energy Electricity Bills. Get an allowance of Rs. Reliance Credit Card holders can receive up to 5 add-on cards at no additional charges. and will be able to transfer money from one Visa Card to another using Citibank Online. Get complimentary joining vouchers of Reliance World outlets (For Broad Band Surfing and Online Trading) and Adlabs (For Food) worth Rs. Get 0% Fuel Surcharge at IOC Outlets.
Division of Reliance Money: Reliance Securities Limited Reliance Commodities Limited and Reliance Financial Services Limited. 38 .
etc. types. It plays an important role in canalizing capital from the investors to the business houses which consequently leads to the availability of funds for 39 .Division of Reliance Money Reliance Securities Reliance Commodities Reliance Financial Services Providing investors the Facility of anytime anywhere online Trading in all major asset classes Commodity related trading. Distribution.Share market is the market for securities where organized issuance and trading of shares takes place. its participants. Overview: Share Market Overview would give an overall idea about the share market. warehouse receipt Financing will be provided Registered NBFC under Reliance Money which will be in the Distribution and funding Business INTRODUCTION Share Market….
Generally.business expansion. Its holders enjoy the privilege of receiving dividends from the company in preference to any other common share holders. Basically. Trading: Share market is the market for securities where organized issuance and trading of shares takes place. 2. Primary Market: It is the market where new issues of securities are offered to the investors. Shares are certificates which represent ownership rights of the holder in a company. The holders are entitled to receive dividends whenever the company announces. b) Preferred Stock: These stocks also give ownership right to its holders. Shares are certificates which represent ownership rights of the holder in a company. 40 . Share Market can be divided into two parts:1. stocks are of two types:a) Common Stock: It gives an ownership right to the holders of the stock. Secondary Market: An investor of a secondary market buys a security from another participant of the same and not from any issuing corporation (as in case of Primary Market). It plays an important role in channelising capital from the investors to the business houses which consequently lead to the availability of funds for business expansion.
Intra day trading: In this type of trading an investor buy and sell stocks during the same day. Scalp Traders: Investors who perform many trades per day for scalping out small profits out of the bid-ask spread. Intra day Traders are of two types :i. They do this within a day. from each trade are known as scalp traders.Shares in the Share Market are traded through:(a) Stock Exchange: These are organized market places where stocks. Delivery trading: In this type of trading an investor buys the share for holding purposes. bonds are other equivalents are traded between the buyers and sellers where exchange acts as counterparty to both the participants in case of any default. (b) Over-the -Counter (OTC): These are not centralized exchanges and the trade takes place through a network of dealers. 2. ii. Delivery Traders are :- 41 . Momentum Traders: Investors who pounce on those stocks which move significantly in one direction and book desired profit are called momentum traders. There are mainly two types of trading:1.
4. Swing Traders: They are basically fundamental traders who take delivery of trades for a span of short period generally more than one day. Technical Traders: They believe that buying/selling signals are present within the graphs and charts of the stock.There are experienced and professional brokerage companies that handle their investments for them. Also. etc. Online Trading has made it easy for private investors to gain straight access to a range of different security 42 . mergers and acquisitions. balance sheet. 2. Investors are not faced with the challenge of making these vital investment decisions. there is someone there to answer any questions that may cause concerns. if they do not have the experience necessary to make the appropriate investments. Offline trading is the main form of investing the money in securities. (b) Online Share Trading: The client could place his order on his own from any place he wants.i. anticipated earning reports. stock splits. provided he has a computer with an Internet connection. Share Broking Company offers two types of share trading facilities:(a) Offline Share Trading: In this form of trading the customer has to place order to the dealer of the stock broking firm either in person or over phone. 1. iii. ii. The one benefit that an investor appreciates the most is that they are not alone when making investment decisions. Fundamental Traders: They perform trade on the basis of study of fact-sheets of the company like historical profit graph. especially. Offline trading offers many benefits as well. 3.
Enter online trades at anytime during Market hours: .You are in control of your investments. Online trading has dramatically changed over the last decade. It continues to be redefined. Thus.markets that were. 2. It has subsequently expanded in conjunction with ground-breaking improvements to the traditional trading interface. only reserved by the use of investment professionals.You can enter online trades at anytime and from anywhere. You decide where to invest your money. Instant online access: . the value of your portfolio updates immediately before your eyes.Instead of going with a company based on their reputation we should see what they can offer us because our needs as a trader will be radically different from someone traders who have different levels of experience and who have different proclivities toward risk and security. There are many companies that offers us excellent services for trading. There are several wonderful reasons to invest online rather than offline trading. online stock trading is the easy way to buy and sell shares from the comfort of your home. DEPOSITORY: 43 . at one point. such as telephone interface systems.Finding a company that provides us with a secure trading account can be difficult. With online trading you are in charge: . This is very convenient if you live in a different time zone than the country you are trading in. It especially fits for investors with busy schedules. No sales pitches and no hassle. 3. Its not that we always want to look towards the most economical rate of trading but rather work with a reputed organization like “RELIANCE MONEY”. but we need to find which will meet our needs and requirements .You can gain instant access to your account. 1. Services have expanded to include integrated management of additional financial accounts.
Unit Trust of India. (NSDL). promoted by The Stock Exchange. In the Depository System.A depository is an organisation which holds securities of investors in electronic form at the request of the investors through a registered Depository Participant. the securities of a shareholder are held in the electronic form by conversion of physical securities to electronic form through a process called 'dematerialization' (demat) of share certificates and facilitates transactions electronically without involving any share certificate or transfer deed. and National Stock Exchange is the first depository. In India the National Securities Depository Ltd. promoted by Industrial Development Bank of India. A second Depository by name Central Depository Services (India) Ltd. Depository system is playing a significant role in stock markets around the world and hence has become popular and prevalent in many advanced countries. It also provides services related to transactions in securities. Investors have choice of two depositories now National Securities Depository Limited (NSDL) and Central Depository Services (I) Limited (CDSL) Constituents of Depository system:• • • • • Depository Depository Participants (DPs) Share Registrar/Issuers Investor Clearing Corporation/Member Role of Depository:- 44 . Mumbai and Bank of India has been registered recently and will commence its operations shortly.
The Depository performs its functions through a network of Depository Participants (DPs) who interact with the Clearing Members and Investor. The Depository carries out following functions through its participants:•
Enabling the surrender and withdrawal of securities through the process of demat and remat to and from the depository system, Maintaining investors' holdings in the electronic form through computers, Effecting settlement of securities traded on the stock exchanges. Carrying out settlement of "off market trades" (i.e. trades not done on the stock exchanges) Advising periodically to the Share Registrar / Issuer about the beneficial owners of the securities.
• • •
CDSL/NSDL's demat services are extended through its agents called Depository Participants (DP). The DP is the link between the investor and CDSL/NSDL. An investor who opens a demat account with a DP can utilize the services offered by CDSL/NSDL. While the DP processes the instructions of the investor, the account and records thereof is maintained with CDSL/NSDL. A DP is thus a "service centre" for the investor.
Role of Depository participants:
Similar to brokers, who act on behalf of a client in the stock market, a Depository Participant is also a representative in the depository system. Financial Institutions / Banks / Custodian / Stock Brokers etc. can become DPs provided they meet the necessary requirements and guidelines prescribed by SEBI. DP serves as a link between the investor and the Company through NSDL for dematerialization of shares and other electronic transactions. DP provides various services with regard to your holdings such as….
Maintaining the securities account balances Enabling surrender (dematerialization) and withdrawal (rematerialisation) of securities to and from the depository. Delivering and receiving shares. Keeping updated with regard to status of holdings periodically.
DP SERVICES:Depository Participant provides the following services: Account Opening: To utilize the services offered by a depository, any person having investment in any security or intending to invest in securities needs to have a demat account with a CDSLDP. This holder of such demat account is called as "Beneficial Owner (BO)". A BO can maintain a demat account with zero balance in such account. A BO can open more than one account with the same or multiple DPs, in the same name/s and order, if he/shedesires so. The investor can approach any DP/s of his/her choice to open a demat account.
Dematerialization: Dematerialization is a process by which physical certificates (of shares / debentures / other securities) are converted into electronic balances. A BO has to submit the request for dematerialization by submitting the demat request form (DRF) duly completed along with the concerned physical certificates, to his/her DP. Processing Delivery & Receipt Instructions: To settle trades done on a stock exchange (on-market trades) and trades, which are directly settled between two BOs (off-market trades), BOs submit duly completed delivery instructions in the prescribed form to DP. For receipt of securities into his/her account, a BO can give one time "standing instruction" to DP. Once such a standing instruction is given to the DP, there is no need to submit separate instructions for receipt every time the investor buys securities. Account Statement: Generally a DP sends to the BO, a statement of his account, monthly, if there is any transaction in the account or every quarter if the account is not operated during that period. Rematerialisation: Rematerialisation is the process by which the electronic balances held in the demat account can be converted back into physical certificates Pledging: If the BO decides to pledge any securities in his BO account, he can avail of the same by submitting the pledge creation form duly completed, to his DP. Nomination: BO accounts also have a facility for nomination in favor of any person.
Every investor who wants to hold shares in Demat form must open account with a DP of his/her choice. The DP provides all the services relating to transmission of shares and for this service DP levy some charges which is to be paid by the account holder. The changes entered by the DP in the CDSL system will be automatically downloaded to all the companies in which the BO is holding securities.Transmission of securities: CDSL offers a facility for transmission of balances held in BO account/s (to other BO Account/s) if so required due to death. All BOs should submit a request in writing to the DP if they wish to record / change their bank account details. 48 . Bank Account Details: SEBI has made it mandatory for companies to print details of bank account of the BO on dividend/interest warrants etc. Dematerialization or demat is a process to convert the securities held in physical form into an electronic form or to directly allot securities in electronic record form. These electronic records of securities are shown as “electronic balances” in the demat account through a depository participant (DP). and charges for annual maintenance which is to be paid by account holder. lunacy. bankruptcy. insolvency or required due to operation of any law. Change in Address: A BO who wishes to register his change in address submits his/her request in writing to his/her DP. to prevent possibilities of misuse of the warrants. DP provides a link between the account holder (beneficiary owner or BO) and the company on one hand and National Securities Depository Limited (NSDL) or Central Depository Services Limited (CDSL) on the other hand. This facility offered by CDSL saves money. time and effort for the BO. in turn the DP provide clients with passbook and delivery instruction slips to operate from his Demat a/c .
Standard Chartered Bank. D-Mat account opening process of Reliance Money is as follows…. CDSL was promoted by Bombay Stock Exchange Limited (BSE) jointly with leading banks such as State Bank of India. additional attachments required are . Bank of India. 49 . Bank of Baroda. dependable and secure depository services at affordable cost to all market participants. attested copies of proof of residence and proof of identity needs to be submitted along with the account opening form. and Union Bank of India and Centurion Bank.D-MAT Account Opening: A demat account are opened on the same lines as that of a Bank Account. Standard Agreements are to be signed by the Client and the DP.true copy of the resolution for Demat a/c opening along with signatories to operate the account and true copy of the Memorandum and Articles of Association is to be attached Reliance Money is a Participant of Central Depository Services Limited (CDSL). HDFC Bank. Along with the form the client. Prescribed Account opening forms are available with the DP. In case of corporate clients. requires to attach Photographs of Account holder. which details the rights and obligations of both parties. CDSL was set up with the objective of providing convenient. needs to be filled in.
50 .200 that is lowest in The Share Broking Industry. No brokerage and Service Charge: Reliance Money is the first and foremost company that charges Brokerage and Service charge 0. Derivatives.750.50 paisa on Intraday Trading. Life Insurance . 2. Whereas Reliance Money. otherwise the Industry wide Brokerage rate lies between 0. aims to tap investors in the smaller towns and cities through a flat fee structure instead of percentage or per transaction brokerage system. General Insurance etc. Cost of Having D-Mat A/C : Opening Charges: With reliance money the A/C opening charges are Rs.C. Reliance Money handles all the key financial transactions through this Single Window.10 to 0. D-Mat A/C is an account in which securities are kept in Electronic form. is just Rs. Annual Maintenance Charges: With Reliance Money the A. These charges are for life time.75 paisa on Delivery based Trading and 0. through which they can invest their money in any Financial Instrument like Equity. IPOs.M. India Info line and India bulls offer a ‘pay per use’ model where the customer pays a percentage of the amount transacted by him.01 paisa on the Sale and Purchase of Security. Flat Fee Structure : The current leaders in the retail broking segment like ICICI Direct. Scheme: 1.01 to 0.D-Mat A/C Provided By Reliance Money: Reliance Money provide its customers with the D-Mat A/C.
500 TIME VALIDITY 1 year TURNOVER VALIDITY Rs.e.00.000 Rs. Trading A/C and Savings Bank A/C.00.00.4 Crore Special Scheme for Small Investors FLAT FEE Rs.000 TRADING LIMIT BOTH Margin on Trading Amount: DELIVERY BASED TRADING INTRADAY TRADING NIL 5 TIMES 3.00.FLAT FEE Rs.500 TIMEVALIDITY 12 Months TURNOVER VALIDITY Rs.00.000 TRADING LIMIT Delivery: 10 lacs Intraday: 90 lacs Delivery: 30 laces Intraday: 2. 51 .3. 3 -Tier Service : Reliance Money provides its customers with a three tier service i.000 Rs.1.00.7 Crore Delivery: 60 lacs Intraday: 5.000 TRADING LIMIT Delivery: up to 3 lacs or Intraday: up to 3 lacs Flat Fee is charged based on the Turnover of an Investor.1000 Rs.2500 TIME VALIDITY 2 Months 6 Months 12 Months TURNOVER VALIDITY Rs.1350 Rs.6.00. This makes the customer free to trade online and makes the trading more hassle free.00. interlinked D-Mat A/C. This model is as follows: Flat Fee Scheme FLAT FEE Rs.5.3.
Reliance Money provides: User ID Password 52 . Convenient :Customer can access the services of Reliance Money through: The Internet-mail at www. The All India Network of Associates on an assisted trade (through the Call Centre or the network of associates) a charge of Rs.com The Transaction Kiosk The Phone (Call & Transact)-call on 3988 6000 or SMS ‘Money’ to 6636. HDFC.12 per executed trade will be applicable.reliancemoney. Safe: For Security Purpose. 5. 4. Reliance Money has its tie up with three banks i. IDBI and UTI Bank and customer need to have his Savings Bank Account with any of these Banks for enjoying this three tier service.e.
Security Token Key that has a unique. 6. 53 . This no. Single Window access: Through Reliance Money’s associates customer can transact in : Equity Equity and Commodity Derivatives Mutual Funds IPO’s Life Insurance General Insurance Money Transfer Money Changing Credit Cards amongst others. six digit no. changes every 32 seconds and works as a dynamic password for keeping the account extra safe.
reliancemoney. Free Tips: Customer gets free tips. retirement etc. Documents: For opening a D-Mat A/C with Reliance Money.7. in the personal finance section. CEOs/Expert views on the Economy and Financial Market. current market information and reports on their: Mobiles E-Mail IDs 8. following documents are needed: Photocopy of PAN Card (both-front and back side) An address proof: (any one of them) • • • • Passport Voter ID Card Driving License Bank Statement 54 . tax. Asset Allocations to build an appropriate investment portfolio. Live News Updates from Reuters and Dow Jones. Risk Analyzer for analysis of Risk Profile. Tools that help customers to plan their investments.com Reliable Research. including views of external experts with an enviable track record. Value Added Services: Customers can get some value added services on www.
• • Rent Agreement Telephone Bill (MTNL or BSNL) 3 Coloured Passport size photographs of the First Holder of Account. 1 Photograph of Second Holder (if any) and 1 photograph of Third Holder (if any). Operations The various operations provided by Reliance money is as follows…… 1) Internet trading 2) Client Account Opening 3) Clearing And Settlement 4) Capital gain on securities transaction 5) LevIies on securities transaction 6) Trading policy for employees INTERNET TRADING: 55 . A Cheque (S/B) worth Rs. 1350. 2500).750 + (500.
CLIENT ACCOUNT OPENING: Prospective client has to have three accounto Trading account o DP account and o Bank account with payment gateway bank DP account has to be with Reliance Capital Reliance Money has tie up with 3 banks…. Client can maintain secrecy of his transactions and portfolio. Client can monitor his position and can see profit and loss on line.Fx and commodities Receipt of KYC by branch from DSA/Sales Executives Checking of KYC Cheque deposit in our designed bank Dispatch of KYC to CBO on daily basis through DTDC courier only CBO process the client information. generate customer ID. Client order is routed to exchange through broker’s trading system. 56 . DP account and password. Client has to have internet access to trade through our internet trading platform. Client can access the trading system and put trade anywhere and anytime. trading account. Client has real time market information..UTI and IDBI Separate KYC for Equity. HDFC. Funds and securities are transferred online from client account to broker account and vice versa hence avoid manual work of cheque and DP slip.
Long term capital loss can be set off against long term capital gain only 57 .Who can open a trading account? Individual HUF NRI Corporate Proprietorship-Only Trading Account Clearing and Settlement Clearing: A process to find out how much and who has brought or sold securities through our broking platform How much money is to be paid or is to be received to/from clients and exchange How much securities is to be delivered or to be received to/from clients and exchange Settlement is pay of funds and securities from the clients and then to the exchange Pay out of funds and securities from the exchange and to clients. Capital Gain Capital gain/loss is the difference between sale proceeds and cost of acquisition of asset. On sale of securities investor has to pay either short term or long term capital gain tax if he earns profit.
Levies on securities transaction Service tax: 12% of brokerage Education cess:2% of service tax STT : 125% of delivery value 0. Securities should be old through recognized stock exchange and subject to securities transaction tax Short term capital loss can be sent off against short term capital gain Long Term Capital Gain When securities are sold after holding for more than one year If shares are sold through recognized SE and STT is payable then no tax is payable on long term capital gain otherwise IT @ 20% has to be paid.Short Term Capital Gain Short term capital Gain.025% of trading one side (sale) 58 . When securities are hold for less than one year and sold Tax is paid @10% on the short term capital gain from sale of securities.
Exempted transaction: IPO. Bonds. Restricted transaction: Group Company. diversion Applicability: Employee and dependent. ACCOUNT OPENING PROCESS The account opening process followed at Reliance Money is as follows…… Accept application forms Process Document checking Verification Rectification of errors 59 . MF. Securities holding period: 3 days and 30 days. Approval: HOD.002% on trading F & O Employees Trade Policy: Objective: Inside information .0. Disclosure: Joining time and every year 31st march. Compliance officer.017% of trade for F& O (sale) Stamp duty : 0. and PF.01% on delivery transaction 0.
Application inward: There are two persons who collect these forms and then forward these forms for their entries.cheque number etc which is then forwarded to all branches . Scrutiny: After doing entries in the excel sheet the forms are being sent for scrutiny. Whether there is a cross signature or not in the corrections etc. Processing completed Sent to the processing house located at Mumbai Account opening at CBO(Central Back Office) After the forms being sent to Mumbai the following process is adopted…. branches .region . The scrutinization includes Whether the forms are properly filled or not.zone. Is there any signature missing.. client name . Entry: There are persons who maintain an excel sheet for the entries of the forms in the format which includes the various details as. There is a team of 10 -15 people who are responsible for scrutinization.application number. 60 .
Once the team finds the process completed then the form is sent for scanning otherwise the forms are sent back to the branches for rectification. 61 . phone number. PAN Validation: In this step there are two persons who check the PAN card of clients from the Income Tax site for its validation. Checker: (process for checking the details) There are 3 to 4 persons who again check the entries done in DMS and if any rejection is found then again it is send back to the DMS and if no rejections found then it is send for further processing that is pan validation. name of client which is used for further processing. Scanning: In this process the first three pages of the summary sheet viz (Form no 1) are scanned for presenting the pages in DMS. This is the step where the form can again be rejected and sent back to branches. DMS: After the form is scanned then they are presented in DMS (document management system) which is a software used to maintain the record of the client which includes the address. The documentation is completed Then the franking and stamping is done by fixing the different stamps of the DP..
DRF (Demat request form). This client master contains all detail of client including his bank details. client ID etc. And in this report CDSL gives the client code for every client. Once the code is generated the details are sent for preparation of Client master report which is issued to every client. BO Id. Then the client master report is sent to the department where the security key are mapped . there are 3 to 4 person who send request to CDSL for authorization in which a report is generated in every 45 minutes from CDSL that the form is approved and account is opened. 62 . With the dispatch of kit the account opening process is completed. Once the kit is fully equipped then it is dispatched to the client through courier. nominee detail. The password of the client is dispatched on the other day of dispatch of kit. This key is given with the kit known as welcome kit to client which includes client master.This is a special feature of reliance Money DP account which provide security to the client and the password are prepared for cases.Authorization: In this process. DIS (delivery instruction slips).
ACCOUNT OPENING FLOW CHART Application inward FRANCHISEE REMISSAR Entry BDE RO Scrutiny BRANCH Processing house Mumbai Scanning If any rejection found send back to BRANCH DMS Checker PAN validation 63 Authorization If not then send it for further processing .
Advantages of ICICI Direct 3-in-1 account integrates your banking. 64 . ICICI Direct: Brokerage and fees : Account opening fees : Rs 750/. Share khan.15% for margin trades and 0.85% on delivery based trades. service taxes and courier charges for contract notes.(One time non-refundable) Brokerage : Brokerage of ICICIDirect varies on volume of trade and inclusive of demat transaction charges.If any rejections found send back to DMS If not then send it for further processing COMPARITIVE STUDY Currently the main Players in Retail Brokerage Business are ICICI Direct. and Motilal Oswal.1% to 0. 5paisa. Here is the Brief study and Comparative analysis of these companies with Reliance Money.com. All accounts are from ICICI and very well integrated. India Bulls. HDFC Securities. It ranges from 0.4% to 0. broking and demat accounts.
Online trading account for investing in Equities and Derivatives Free trading through Phone (Dial-n-Trade) 65 . demat and digital contracts. Not all stocks are available under Margin Plus. provider of India-based investment banking and corporate finance service. Real-time portfolio tracking with price alerts and Instant credit & transfer. Disadvantages of ICICI Direct Getting access to ICICI Direct. Mutual Funds. General Insurance is also available from ICICI Lombard. NSE.com website. ShareKhan has around 250 offices around the country. Sharekhan: Sharekhan is online stock trading company of SSKI Group. ICICI Direct brokerage is high and not negotiable. depository services. online trading and investment advice. Trading is available in both BSE and NSE. Sharekhan’s equity related services include trade execution on BSE. ShareKhan is one of the largest stock broking houses in the country.com website during market session can be frustrating. commodities. Integrated Banking. Trading is available in BSE and NSE. Along with Sharekhan. Derivatives. Investment online in IPOs. Allow investor to buy and sell stocks online along with the following features like: • • • • • • multiple watch lists. GOI Bonds. and Postal Savings Schemes all from one website.
Bombay Stock Exchange. Proof of bank account Copy of PAN card. Automtic funds tranfer with phone banking (for Citibank and HDFC bank customers) Simple and Secure Interactive Voice Response based system for authentication Get the trusted. Luxembourg Stock Exchange and London Stock Exchange. 66 . Document Required to open Equity Trading Account with Indiabulls: One passport size photograph. Indiabulls Financial Services Ltd is listed on the National Stock Exchange.copy of passport or PAN card or voter ID or driving license or ration card.• • • • • • • • • Two dedicated numbers for placing your orders with your cellphone or landline. professional advice of our telebrokers Integration of: Online trading + Bank + Demat account Instant cash transfer facility against purchase & sale of shares IPO investments Instant order and trade confirmations by e-mail Single screen interface for cash and derivatives India bulls: Indiabulls is India’s leading Financial Services and Real Estate Company having presence over 414 locations in more than 124 cities. Identity proof .
Power Indiabulls trading terminal is the most advanced new generation trading platform with great speed.Demat Account opening charge 750/. Address proof . Cannot Apply IPO. a java based software. 67 . Provide trading terminal ‘powerbulls’.Software charges Advantages of Indiabulls Equity Trading Account : Brokerage is less compare to other online trading companies.(One time non-refundable) as below: 250/.Equity Trading Account opening charge 200/. Brokerage and fees : Account opening fees : Rs 1200/. It’s very fast in terms of speed and execution.copy of driving license or passport or ration card or voter card or telephone bill or electricity bill or bank statement. Extensive Reports for Real-time Accounting. Power Indiabulls is extremely reach in features including • • • • • • Live Streaming Quotes Fast Order Entry and execution Tic by Tic Live Charts Technical Analysis Live News and Alerts. Disadvantages of Indiabulls Equity Trading Account Need a HDFC account for instant transfer.
Learning 5paisa Trading Terminal is little hard. Disadvantages of 5paisa Trading Terminals No intra-day tick by tick charts in Investor Terminal (IT).5 paisa. which is another product provided by 5Paisa. Trading is available in BSE and NSE. Motilal oswal: 68 .com.. • Trader Terminal (TT) Trader Terminal is for high volume equity traders. Trader Terminal provides high volume trading with powerful interface and fast order execution. Besides high quality investment advice from an experienced research team. the site offers real time stock quotes.com: 5paisa is Online Stock Trading Company of India Infoline Securities Private Ltd. Advantages of 5paisa Trading Terminals Very fast execution speed. This is web based terminal and could access from anywhere. Trading Terminals Available • Investor Terminal (IT) Investor Terminal is 5Paisa’s equity trading terminal for low volume trader. market news and multiple tools for technical analysis. This product provides limited features in comparison of Trader Terminal. Owner of popular business portal Indiainfoline.
Access to various online reports like margin report. Online transfer funds through HDFC Bank. depository services. (MOSt) is one of the best broking houses in India. net position report with mark to market profit/loss and realized profit. HDFC Securities: HDFC Securities (HDFCsec) is Equity Trading Company of HDFC Bank. trades executed. MOSt E-Broking is complete online stock trading solution for Indian stock market. portfolio management services (PMS). MOSt has in 200 cities through 400 outlets. Funds / shares are seamlessly moved from the linked Demat/Bank account to execute the transactions. MOSt provide advice-based broking (equities and derivatives).Motilal Oswal Securities Ltd. Founded in 1987. HDFCsec provides Cash-n-Carry on both NSE and BSE. Demat A/c details. IPO and mutual fund investment advisory services. HDFC Securities provide both online trading and trading on phone. 69 . turnover report. The HDFC Securities trading account has a unique 3-in-1 feature that integrates your HDFC Securities trading account with your existing HDFC bank savings account and existing Demat account. Features: Following are the features of MOSt E-Broking account: Easy single screen trader with instant trade confirmation similar to exchange based trading terminals. e-Broking. commodities trading.
No manipulation . the minute your order is executed. Dedicated and Separate contact numbers . we will send you an email confirmation. 2.By integrating your accounts. we ensure minimal waste of time during movement of your funds and shares. Safety and Security . Brokerage and fees : Rs. you could link them with trading account. COMPARATIVE STUDY ONLINE BROKE R A/C OPENIN G CHARGE ANNUAL MAINTENANC E CHARGE BROKERAG E (DELIVERY) BROKERAG E (INTRADAY) MARGIN (DELIVERY) MARGIN (INTRADAY) 70 .HDFC Securities offer the highest level of security such as 128-bit encryption technology.(Including trading account.Orders are placed electronically.Day trading on both NSE and BSE. bank account and DP account with HDFC) Note: HDFC Bank savings account required a quarterly minimum balance of Rs.To prevent any mismanagement. Speed . so proceeds are available instantly.for trading over the phone as well as for customer care. Trade on Futures & Options on the NSE and Online IPO Investment.500/-. 799/. Features: Seamless Transactions . If you already have Saving account or DP account with HDFC.
05 % 0.01% 0.75 % 0.40 % 0.01% DEPOSITED AMOUNT DEPOSITED AMOUNT 4 TIMES 5 TIMES 750 250 0. For a certain number of franchisees 71 .Reliance Money ICICI Direct Share Khan India Bulls 5 paisa.05 % 0.40 % 0.05 % 8 TIMES 900 550 450 799 NONE NONE 250 300 0. com Motilal Oswal HDFC 750 200 0.10 % 4 TIMES 2-4 TIMES 2-4 TIMES DEPOSITED AMOUNT 8 TIMES 6-8 TIMES 10 TIMES DEPOSITED AMOUNT FRANCHISE MODEL Reliance money gives equal opportunities to self employed people by letting them earn through the fantastic DSA model of it.45 % 0.05 % 8 TIMES 750 300 0. This model provides hefty commission on all the products of reliance money and enhances the sales.25 % 0.35 % 0.05 % 0.
Portfolio Management Services etc. Credit Cards. General Insurance. Mutual Funds. PROMOTION 72 . i. Else of these products there are many other promotional products which come in different variables of time giving good earning opportunities to the DSAs. Life Insurance. A DSA can deal into all the products of reliance capital.: DEMAT Account.e.there is a manager who is the person responsible to excel the satisfaction of the franchise holder.
SWOT ANALYSIS 73 . after 15 days of hard struggle I finally managed to get the permission of canopy in Kirloskar Pneumatics.As into customer survey I was also asked to go for promotion of reliance money on my own. Working on this way. The best way I found out to promote the product was a canopy. The customer exposure I got over there was terrific and I generated some good leads for the company and this was one of my achievement of the project conducted.
g.Meaning: A SWOT analysis is a method for describing the business in terms of those factors that have the most impact. Opportunities and threats often relate to external factors.: No brokerage is charged. • Team of talented and committed professionals available to improve company’s performance. Reliance Money is able to give really good customer care. 74 . nominate the Strengths and Weaknesses of the business (its internal resources and capabilities). SWOT ANALYSIS OF RELIANCE MONEY Strengths: • • • • • • • Price competitiveness ( E. no need for higher management approval. as the current small amount of work means we have plenty of time to devote to customers Their lead consultant has strong reputation within the market They change direction quickly if our approach isn’t working Management philosophy and commitment to maximize shareholders returns of Reliance Money. Essentially the co. etc. then it identify the Opportunities and Threats it faces (factors external to the organization). Ongoing activities of the company to support up gradation of operational performance and rise in productivity. Strengths and weaknesses are often internal to your organization. Annual maintenance charges are least) Reliance Money is able to respond very quickly as we have no red tape. For this reason the SWOT Analysis is sometimes called Internal-External Analysis and the SWOT Matrix is sometimes called an IE Matrix Analysis Tool.
India Bulls etc. QUESTIONNAIRE 75 . Company has a small staff with a shallow skills base in many areas Opportunities: • • The share trading sector is expanding. A small change in focus of a large competitor is a threat for the market position. Threats: • • • • Developments in technology will change the share market beyond the ability to adapt. with many future opportunities for success The competitors may be slow to adopt new technologies. Relentless pressure to maintain profitability due to rising input/raw material prices.Weaknesses: • • New entrant in the market which is dominated by big brand names like ICICI. Constant pressure to be cost competitive to meet customer expectations.
Have you heard about Reliance Money? a). c). Yes. Student. 1). e). Which age group do you belong? a). Profession. Self. Service. 3lakh and above. Advertisement. 4). Retired. Q. 5). What is your perception about Reliance in general? _______________________________________________________________________ _______________________________________________________________________ __. 1 lakh – 2lakh.Q. 6). Q. No. upto 1 lakh. Q. c). What do you do? a). b). 76 . How do you come to know about Reliance Money? a). Q. Q. b). 40 – 50.employed. b). b). 30 – 40. 18 – 30. d). 2). d). 3). 2lakh – 3lakh. 50 and above. d). c). Your income per annum? a).
10). Our executives. No.b). f). c). b). Q. 7). others. Reliance Money. Q. a). Do you trade? a). Are you satisfied with your current service provider? If not. b). Share Khan. i). then do specify your reason of dissatisfaction?(non reliance customers) 77 . Friends. g). d). Relatives. Q. Yes. Offline. Motilal Oswal. No. c). h). d). 8). Karvy. Online. Who is your current service provider?(for the people who alredy trade). e). If no. Anand Rathi. ICICI Direct. Q. b). how do you generally trade? a). Religare. Q.10). India Bulls. Yes. b). then would you like to trade if provided with complete market knowledge? a). 9).
User friendly web portal. No. 11). d). 78 . Fast responding services. e). b). What amongst the following do you feel is the most important element to open up a demat/trading account? a). Yes. lower brokerage charges. Good relationship managers.a). Q. _________________________________________________________________ _________________________________________________________________ __. c). b). Good market predictions.
1). 40 – 50. 18 – 30. 50 and above. What do you do? a). 21% 61% 40 – 50. d). b). c). 2). QUALITATIVE ANALYSIS: According to the survey. The reason behind can be assumed that people of this age range have less responsibilities to bear and thus have maximum risk bearing capacity and therefore are more keen towards investments as they have more disposable income as compared to older age groups. most of the samples which enquired about the investment products were in the age range of 18 – 30. 50 and above. 30 – 40. Service.Q. Q. 79 . 8% 10% 18 – 30. 30 – 40. Which age group do you belong? a).
Students do invest into stock markets as their hobby. Self. 3). e). Profession. Your income per annum? a). Retired QUALITATIVE ANALYSIS: As seen by the survey most of the people interested into investments were the people who were into service. b). c). 1 lakh – 2lakh. Student. Self. This is because these are the people who are able to find more time and disposable income as compare to another sample groups. 6% 7% 6% a).employed. upto 1 lakh. 24% 57% d).b). Student. d). Professionals are assumed to get no time because of their hectic schedules and students are anyhow not so interested towards investments at such an initial stage. Service. Q. 80 . b). Profession. c). e).employed. Though self-employed people are also keen towards investments but they also need liquid cash in order to keep their money running into the business. Retired.
d). 2lakh – 3lakh. 2lakh – 3lakh. 4). What is your perception about Reliance in general? 81 . 3lakh and above. d). b). 1 lakh – 2lakh.c). Therefore the range of 3 lakhs and above is the appropriate range which should be targeted for the sales of investment products. Q. upto 1 lakh. 28% QUALYTATIVE ANALYSIS: People earning in the range of 1 lakh are not able to invest much because they are not able to invest much. c). 3lakh and above. 11% 37% 24% a).
Q. 5). Yes. Most of the complaints were towards the service segment of Reliance as a company. They feel that Reliance at most of the times is not able to keep upto its promises as they feel that Reliance keeps all of its focus on sales and hardly gives any importance to the service side. 82 . QUALITATIVE ANALYSIS: Though most of the people as shareholders feel Reliance is a company which is ideal to invest your money in but very few actually have faith in Reliance when these shareholders come into the shoes of buyers._______________________________________________________________________ _______________________________________________________________________ __. People have a perception that Reliance is a name which is associated with hidden charges and they actually don’t believe on the tariffs of Reliance very easily. Have you heard about Reliance Money? a).
The remaining unknown people are those which actually do not participate into investment activities and are thus unaware of this market segment. Advertisement. How do you come to know about Reliance Money? a). 83 . No. 6). Q. Yes. b). 91% QUALITATIVE ANALYSIS: Almost all of the people I met during the project were familiar with the name of Reliance Money which is a good sign for the marketing department as this figure shows that this product is marketed well into the market.b). 9% a). No.
Advertisement. 7). 55% 11% c). d). 12% QUALITATIVE ANALYSIS: Most of the people came to know about Reliance Money through the sales executives which is again a good sign which shows that Reliance has an efficient sales staff which is working with its full efficiency and dedication. d). c). Friends. Relatives. Q. 22% a). Friends. Relatives.b). Do you trade or invest? 84 . Our executives. And again 23% of people have come to know about the company by their friends or relatives which shows that the efficiency of the sales staff has turned the existing customers into the brand ambassadors of the company to attract the potential customers. b). Our executives.
a). 22% a). 78% QUALITATIVE ANALYSIS: Almost 80% of the people surveyed are trading or investing their money into the market which shows that the market potential is very high and future growth perspectives of the company are very good. If no. then would you like to trade if provided with complete market knowledge? 85 . No. b). Yes. 8). Q. b). No. Yes.
a). b). b). 70% QUALITATIVE ANALYSIS: This can be seen very easily from the response that most of the people do not show their interest in the investment activities because they are unaware of the market trends and thus they are afraid of burning their hands. Yes. 86 . 30% a). No. Yes. 9). ICICI Direct. Who is your current service provider?(for the people who already trade). Q. No. These people if provided with complete market knowledge and proper purchase assistance can turn into the potential customers of the company and these customers as fully satisfied ones will remain much loyal to the company than the other ones. a).
India Bulls. h). Anand Rathi. Religare. Share Khan. c). g). Religare. i). 35% c). 87 . e). Motilal Oswal. ICICI Direct. This concept relaxes the customers and they feel free to trade upto the amount they have already paid. This shows that reliance money is moving on the right path but it needs to maintain the quality of services and assistance offered to the customers and keep moving ahead consistently. Karvy. f). As discussed earlier. ICICI though as a largest player has a good quantity of customers but it lacks good quality traders as it is the most expensive brokerage house in India but it manages to make customers because of no account opening charges. QUALITATIVE ANALYSIS: It’s just one and a half year of reliance money into the market and it has become the second largest player in the industry. b). others. 6% 12% 4% 2% a). 28% 5% 6% 2% i). d). others. Anand Rathi. Motilal Oswal. Reliance Money. India Bulls. f). h). d). Share Khan. g).b). reliance money has also eliminated the doubt of hidden charges by taking prepaid brokerage from the customer. Reliance Money. Karvy. e).
Online. how do you generally trade? a). Yes. 88 . 25% a). b). People now prefer to trade online as they feel it is more transparent and reliable rather than trading offline as there are some chances of human error while trading online. b). No. 75% QUALITATIVE ANALYSIS: Because of the tremendous growth of technology the way of trading and investing has also changed a lot. Offline.Q.10).
Customers complain that either the brokerage house is too expensive but most of the users were ready to pay more on the sake good purchase assistance. _________________________________________________________________ _________________________________________________________________ __. Yes. People want the assistance to be customized according to their risk bearing capacity and this is the area where reliance lacks behind as all its assistance is in general whereas customers want it to be according to their needs. 68% QUALITATIVE ANALYSIS: Though many people think that they are completely satisfied still the number of unsatisfied users id substantial. 10).Q. b). No. Yes. No. Are you satisfied with your current service provider? If not. If reliance money puts in more effort to its relationship management than it will soon become the market leader and will gain loyal customers. b). 32% a). 89 . then do specify your reason of dissatisfaction?(non reliance customers) a).
Q. This will not only increase the loyalty of the customers towards the company but their good word of mouth will also bring in new customers without any marketing cost. User friendly web portal. Good market predictions. e). 22% 26% a). c). Fast responding services. Good market predictions. e). What amongst the following do you feel is the most important element to open up a demat/trading account? a). Fast responding services. c). User friendly web portal. Good relationship managers. 14% 18% 20% d). QUALITATIVE ANALYSIS: After the survey it’s pretty clear now that people are actually ready to pay more on the sake of excellent market predictions. lower brokerage charges. lower brokerage charges. 11). 90 . b). Good relationship managers. d). good investment assistance and relationship management. b). Reliance money which is a bit weak in all the three areas can make up new customers by offering lowest brokerage charges and other monetary benefits but to sustain in the industry well it needs to create a customized system which takes care of each and every individual.
3) Many of the customers are not in touch of company but actually deal with franchisees and remissers. This gap needs to be filled before it starts bringing in some adverse consequences. many people don’t trade or invest because they don’t have any knowledge regarding the market. 6) Motivational programs should be conducted in order to increase the efficiency of the customers. 91 . Company should start a free of cost training program for these kinds of customers. 5) Though the sales staff is very effective but reliance money is lacking behind in operational effectiveness. To fill this gap I have come up with some recommendations and suggestions which can help the company satisfy their customers better. 2) Most of the customers trade via the online platform of the company and not from the office therefore company should start a system of filling up of feedbacks and complaints online so that rectification of errors can be done easily.RECOMMENDATIONS AND SUGGESTIONS After analyzing all the expectations of the customers and the experience they basically get while using the product we can a gap between the expectations and the experience. Company should take a note on this. 4) As seen in the qualitative analysis. Company should train its employees regarding relationship management so that the products can be personalized according to the needs of the customers. Company should start a kind of soft skill training program for all of its distributors so that the customers feel the same level of satisfaction as they feel while transacting with the company. These suggestions are listed below:1) Though reliance money is having a very good and well trained sales staff which is able to bring in customers but it is very necessary to build relationship with the customers to keep them retained. These are untrained people and are unaware of the importance of relationship.
92 . These changes though look small but create a lot of value to the customers and make the company more approachable.7) Though the service quality is good but it should become better consistently as good service and better relationships are the key success factors of current market situations. Some of these changes in the system can actually create miracle for the company. 8) The process of documentation is a hassle for customers as it is not at all user friendly. Company should take care of user friendliness of the system.
93 .LIMITATIONS While conducting the survey there were various limitations because of which the results cannot be declared correct by 100%. Some of these limitations are as follows:1) People are reluctant towards the survey and take it as a waste of time. I was able to complete the survey and prepare my project report much before the deadline. 3) Cold callings were not entertained everywhere and thus we were not able to meet all the classification of customers. 6) Language was a hurdle while talking to many of the local people. 2) Taking appointments was very tough as people were not ready to give their time for a survey. Though these limitations were there but because of the support of the people I have surveyed and the experience I have gained while preparing for the survey presentations of my college. 4) Because of the temporary fluctuations in the market it was a tough time talking to the people regarding investments. 5) People were reluctant towards the products of reliance because of a general perception that reliance always comes with low price but always has hidden charges.
This gap has emerged because of the sales oriented focus of reliance money. the company has somewhere ignored the service delivery and left the customer on his own.CONCLUSION The expectations of the customers are regularly increasing because of the increasing competition and emergence of global market. Though reliance money is working very hard in order to do so but there is a gap between the expectations and the experiences of the customers which is widening regularly. 94 . These financial instruments are risky and it is very essential to make the customer feel that you are taking care of his money. In such conditions it becomes very necessary for a company to fulfill all the expectations of the customers and give them a delightful experience. company needs to customize its services as it is dealing into financial instruments. In order to fill this gap. This can be done only if all the services are customized and the system is made transparent for the customer as well as for the employees. In order to increase the sales figures.
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