Presentation ON

“Comparative Study of Online Trading For Religare Securities & Motilal

Oswal”Presented By

R devil6devil 66

MBA2008-10

ABSTRACT

• As my target customer are STUDENTS, CORPORATE PEOPLES, BUSINESS MENS

• I have collected the information and data on the basis of survey.• Firstly let us go through what exactly a broking firm.• There are more than 25 broking firm in Pune• Major players dominating the Indian market today are India infoline ltd,

Religare, Motilal Oswal, and ICICI.• The broking firm was growing rapidly and it has already made its

presence felt in all parts of the world.• As India is considered as a global hub for all business• Millions of people who deal with small and medium scale business,

educational institutes and professionals.• Broking Industry is facing a slowdown in the last 13 months

INTRODUCTIONReligare Securities Ltd.

Religare set up & has grown up institutional brokerage house to full-fledged financial intermediaryThe company has significant presence in institutional & retail brokingIt offers wide range of services including equities, commodities etcReligare retail network spreads across more than 900 locations across more than 350 cities and towns in India.Religare has membership of the National Stock Exchange (NSE) Bombay Stock Exchange (BSE)The company is also a member of National Securities Depository Limited (NSDL) & Central Depository Services India Limited (CDSL).

BSE (BOMBAY STOCK EXCHANGE)BSE has carved out a unique position among the stock exchange It is located in MumbaiIt is one of the oldest stock exchange

NSE National Stock Exchange)The National Stock Exchange (NSE) located in Mumbai is India’s first dept marketIt was recently accorded recognition as a stock exchange by the department of company affairsNSE was promoted by leading financial institution

Motilal Oswal Securities Ltd.Motilal Oswal Securities Ltd. was

founded in 1987 as a small sub-broking unitTechnology has enabled us to blossom

into an almost 2000 member team.It is headquartered in Mumbai and as of

December 31st, 2008network spread over 512 cities and

towns comprising 1,428 Business Locations operated by our Business Partners and us.

OBJECTIVE OF THE RESEARCH

• To make people aware about market.• To review the concept, price & analysis• To show the advantage & disadvantage of

stock market.• To study and analyze the major competitors to

Religare & Motilal Oswal• To study and analyze the problem faced by

Religare & Motilal Oswal

PROBLEM DESCRIPTION & JUSTIFICATION OF STUDY

• Are people really getting benefits from the various predictions being made by the analysts?

• Lots of time & money is being waste of the people who involve themselves in the stock market

DATABASE

• My target is to make people aware of stock market & to tell advantages & disadvantages of the stock market to the people.

• There are many competitors in Pune market. • . I will be collecting the information and data

from this information centres• I will also collect data from the secondary data,

like Magazines, Internet and some case studies.

METHODOLOGY

• I am going to collect data by using two following methods:*Primary data collection:

This I can collect by focus interview and personal interview.*Secondary data collection:

This will be collecting from already existing data like from Internet, official sites of Company, Financial news papers and TV also.

FINANCIAL SERVICE INDUSTRY

• The introduction of new products and services• The Indian financial sector is charting an impressive

growth path.• According to global research data from Macquarie,

India is the most preferred stock market• The market is also expected to undergo a structural

transformation with organized players increasing their market share.

• The government has permitted liquidity support for non-banking finance companies

MARKET SEGMENTATION

• Market segmentation is different part of market consisting customers

• In Religare securities & Motilal Oswal use the market segmentation strategies to target the customers.

• Firstly they target,all business men who are interested in long term and short term investment

• our plan we have segmented our market into medium and small scale business

• We have chosen this segment because they are the fastest growing sector in India.

PROGRESS TILL DUE DATE

• I have decides to collect the data of 500 customers• The instrument that I have used for collecting data is I have prepared a

questionnaire 1.Do you have a Demat Account?

2.If Yes? In which company you are having an Demat Account? 3.How much margin money they are charging? 4.They are providing you Bank Account? 5.They are providing you softwares ? 6.If Yes? How much they are charging for the softwares or free of cost? 7. What kind of facilities are you getting? 8.What are the main facilities which attract you as customers towards religare securities ltd. Or Motilal Oswal? 9. Are you aware from what the share market is? 10. Who are the major competitors of broking firm?

LITERATURE REVIEW

• The paper “A Comparative study of online trading for Religare Securities & Motilal Oswal Securities”

• Both the public & the private companies offer a wider choice in terms of products & services.

• To begin with a consumer would decide on what he or she would like to consume.

• At this point a consumer priorities those items that provide more satisfaction.

• This facts to a decision on which commodities are required the most and in what quantities.

• Lots of time & money is being waste of the people who involve themselves in the stock marketANALYSIS

Not having enough knowledge about share marketOnce people involve in it they play like gamblingDifficult to everyone to go through lots of

technology thing involved on it.Difficult to aware about market knowledge to

everyone.KEY PLAYERS

This section provides an overview of some of the key players in the industry like:-

India Infoline Ltd., Angel Broking, Religare securities, Share khan etc

RESEARCH METHODOLOGY

Area of research :- PuneSample Design :- Random SamplingSample Size :- 500 CustomersResearch Instrument:- QuestionnairesPrimary Data:

Personal Interview of CustomersQuestionnairesInterview of RM of Religare, Pune branch

Secondary Data:Company literatureInternetReference books of Service Marketing & Retail ManagementMagazines And Journals

STOCK MARKET

• Fund raising by India Inc through initial public offers (IPOs)

• Significantly, fund mobilization during the first quarter of 2008 was the second highest for a quarter in the Indian capital's history.

• The Indian stock market has slowed down due to the global economic turmoil.

• By Thomson Reuters study, India Inc is likely to raise four times

2CETT

• CUSTOMER*Religare Securities had around 3.20 lakh clients*Motilal Oswal had 3 Lakh clients*Religare retail network spreads across more than 900 locations across more than 300 cities and towns in India.More than 4200 sub-brokers.*Motilal Oswal had a network spread over 512 cities and towns comprising 1,428 Business Locations operated by our Business Partners and us.*Both are having all type of customers like High Net worth Individuals, Retailers and Corporate.

• ENVIRONMENTCompany is working in very dynamic

industry.There is uncertainty about future growth

of share market.Company is facing very tough

competition because large numbers of players are present in broking industry.

Because of economic slowdown companies revenue has decreased slightly

• TECHNOLOGYCustomer gets login id through which

they can trade online.Company is using MS Outlook for

Sending and receiving mails.Both the companies are giving all the

customers trading software Religare is charging less amount than

Motilal Oswal for softwares

• TERMINOLOGYSensexIt is an index that represents the direction of the companies It comprises of 30 companies.NiftyIt is the Sensex's counterpart on the National Stock ExchangeNifty comprises of 50 companies and hence is more broad- based than the Sensex.BullA particular kind of investor who purchases shares in the expectationShe/he sells her/his stock at a higher price and pockets the profit.The bulls buy at a lower price and sell at a higher price.BearBull's counterpart is the bear.A bear sells stocks first that s/he owns or borrows from, say a friendThen purchases the same quantity of shares at a lower price.

Brokerage Brokerage is the commission

charged by the broker for purchase/sale transaction

Scrip symbolFor NSE trading scrips are

represented by their symbols depending upon their names.

PEST ANALYSIS MODEL

POLITICAL ANALYSISTax Policies: - Tax policies are one of the important issues in

forming the brokerage firm.If the taxes charged by the government are high then the

company has to raise their opening charges to recover their money.ECONOMIC ANALYSIS

Economic Growth:- As the economy grows people tend to investAs there is slowdown in the economy people are not interested

to invest.Interest Rates:- In this trading market interest rate is very

important.Each and every company in this industry earns from the

brokerage the charge for the transactions

SOCIAL ANALYSISConsumer Behavior:- This industry total depends upon the

behavior of the customerIndustry depend upon the brokerage they earn from the trade

the customer does.If the customer trade regularly the company earns more profit.Income:- Income of the people is also importantthe income of the people in the country is more than people

tend to invest more.TECHNOLOGY ANALYSISInformation Technology:-The Company uses different

Software’s in their work.Company that provides the software in NSE NEAT DEAL & ODIN

for BOLT DEAL in BSE.Relationship Management Service (RMS) is used for

Accounting and Customer Relationship Management (CRM).

PORTERS FIVE FORCE MODEL• Barriers to Entry.

SEBI Regulations: - Security Exchange Board of India had many rules and regulation to deal in Brokerages Firms.

So before entering in this type of Business the Firm has to follow all the rules and regulations.

Capital Investment: - To enter in this type of firm it requires a lot of capital investment.

The minimum capital investment is 2Crore.So it is very hard to collect a lot of investment.

Licensing: - It is very difficult to get a license from the Government to run up this type of firms.

Product Differentiation: - The important barrier is the differentiation of the products the company is going to produce.

For Eg. As Angle is providing a free ICICI Banks A/C with ZERO Balance with the opening of Demat A/C with Angle

• Intensity of Rivalry among the Firms:Each and every firm in this industry try to

gain advantage over its competitors.In this industry significant market share

is enjoyed by many small players.• Threat of Substitutes:

Substitute affects the level of competition.

The substitutes for this type of firm is the Fixed Deposits kept in the bank

KEY COST ASSOCISTED

• Cost is the value of money that has been used up to produce something• In business, the cost may be one of acquisition• in which case the amount of money expended to acquire it is counted as cost.• Usually, the price also includes a mark-up for profit over the cost of production.• The costs associated with Broking Firm are as follows

Professional fees: Professional fees includes taxes, transactions cost and

managements cost.They also have to keep a close eye on satisfying the employees

as if new business is establishedTechnology costs:

Expenditure associated with acquisition or development, and maintenance of technology assets

For a new company to start need constantly updating the technology.

Administrative costs:Expense incurred in controlling and

directing an organizationAdministrative costs are related to the

organization as a whole as opposed to expenses related to individual departments.

Sales and marketing costs:Marketing cost analysis is a detailed

examination of the costs incurred in the organizationAdministration of the sales and marketing

function and its impact on sales volume.A marketing cost analysis is a detailed study

of a company’s marketing costs.

GENERIC COMPETITIVE STRATEGIES

• These are the strategies which analyses firm’s success in an industry in which it is operating

• Its position in an industry & its attractiveness of products.• There are three generic competitive strategies which are:

Cost Leadership Strategies:-Firm gains cost leadership in an industry when its cost

of product is lower than its competitors. And at that low price strategy company gains profits &

competitors bound to make losses.RELIGARE SECURITIESCost of Demat account Rs. 555/- only annual charges

are applicable.

MOTILAL OSWAL LTD:Cost of Demat account Rs. 750/- only & annual charges are

applicable.Differentiation:-A differentiation strategy calls for the development of a product or

service that offers unique attributesThe value added by the uniqueness of the product may allow the

firm to charge a premium price for it.This differentiation strategy of product allow to perceive the

product as different from that of competitors.Focus Strategy:-It shows specific segment, special group of customers, special

geographic area, or particular product.Religare:- This company concentrate on demat accountcharging less for commodity account which help the people to saveThey try to attract those customers which are interested not only in

shares but also in commodity.Motilal Oswal & Religare both provide free sms services.

Result and Analysis

• For completing this research researcher has gathered the information mainly from the primary source.

• I have decides to collect the data of 500 customers who want to play or who want to invest

• I have collected data base of 300 customers• The instrument that I have used for collecting data is

I have prepared a questionnaire• As per the questionnaire, researcher got many

valuable data.

• Numbers of customers who are having the Demat Account?*Does Not -30%*Does -70%

Sales

Does NotDoes

PERCEPTUAL MAPING

Brokerage AMC Other Facility0

10

20

30

40

50

60

ReligareMotilalOthers

• Which Broking Firm they prefer most?

2005-06 2006-07 2007-08 2008-090

1

2

3

4

5

6

ReligareMotilalOthers

• Sex RatioMale 220(73.33%)Female 80 (26.67%)

Sales

MaleFemale

• Age Group

20-25 26-30 31-35 36-Above0

20

40

60

80

100

120

140

160

Series 3% Age

RECOMMENDATIONS & SUGGESTIONS

• Religare has to concentrate more on facilities area as they are a little weak in that area if they improve that they will get more customers & they will get more transactions.

• Motilal has to work more on customer satisfaction so that they can reach number one position in India.

• Both the company should concentrate more on Technology cost, administrative cost, sales & marketing cost.

• Motilal company should concentrate on its brokerage, AMC, Facilities as people are least satisfied with it while Religare should concentrate on the AMC & the facilities.

• For promotional offers, company should go for giving free of cost for commodity account as many of the other competitors are doing

• Religare need to adopt technology so that time lagging and accuracy can improve and make to the best.