Competitive Analysis of Stock Brokers Religare

A PROJECT ON

COMPETITIVE ANALYSIS OF STOCK BROKERS

Submitted in partial fulfillment of MBA programme in EMPI Business School, New Delhi

Under the guidance of:Faculty Name: Ms. Rashmi TomarProject Guide: Masroor khan Submitted by: Name: Ramandeep Singh Roll. No. 23 Batch: 2008-10 EMPI Business School New Delhi-110074 ( 2008-10 )

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Certificate of Approval

The summer project titled “COMPETITIVE ANALYSIS OF STOCK BROKERS” is

hereby approved as a certified studying management carried out and presented in manner

satisfactory to warrant its acceptance as a prerequisite for the award of MBA for which it

has been submitted. It is understood by this approval the undersigned do not necessarily

endorse or approve any statement made, opinion expressed or conclusion drawn therein

but approve the summer project only for the purpose it is submitted.

Summer Project Report Examination Committee for evaluation of Summer Project Report.

Name Signature

Faculty Examiner

External Examiner

Project Coordinator

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Certificate from Summer Project Guides .

This is to certify that Ramandeep Singh Bhatia student of MBA studying at EMPI

Business School, New Delhi has worked under our guidance and supervision. The project

has been completed at Religare Securities Limited for a span of 8 weeks. This summer

project report has the requisite standard and to the best of our knowledge no part of it has

been reproduced from any other summer project, monograph, report or book.

Rashmi Tomar Masroor Khan

Faculty Guide Branch Head

EMPI Business School Religare Securities Limited

New Delhi G-36, Outer Circle.

Connaught Place,

New Delhi.

Date: Date:

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Acknowledgement

I express my sincere gratitude to Mr. Masroor Khan for guiding me through out the

project. He helped me in guiding me for all the difficulties I faced. He helped me in

giving the adequate knowledge regarding the various products and knowledge about

the stock market.

I am also thankful to my faculty guide Mr. Rashmi Tomar and all my faculties for

being with me and helping me in all the problems I faced. They explained how and

what steps I would take to perform my project effectively.

Signature:

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Declaration

I, Ramandeep Singh Bhatia, hereby declare that the project on “COMPETITIVE

ANALYSIS OF STOCK BROKERS ” is written by me under the guidance of Mr.

Masroor Khan. The empirial conclusions and findings in the project are based on the

data collected by me and the entire project work is not a reproduction of any other

source.

Signature:

Name:

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Content of the project

S. No. Chapter 1 Brief History 8-13

Introduction to the stock market 14 Stock exchanges 14-15 List of stock exchanges 16-17 SEBI 17-18 Bombay stock exchange 19 National stock exchange 19-20

2 Introduction to the project 21 Objective 21 Significance 22 Scope 22 Managerial usefulness 23

3 Religare Securities 24 Offerings of Religare Securities 25 Value additions 26 Religare’s edge 26 Management Profile 27-28 Investment Philosophy 29 Schemes 29-33 Products 34-41 Problems 41

4 Research Methodology 42-47 Telemarketing Its types

5 Finding and Analysis 48-83 Telecalling Analysis of the competitors Kotak securities

Introduction of Kotak Securities Company Background Online account types Pricing Problems

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India Bulls Company Background Online account types Pricing Problems

ICICI direct Company Background Online account types Pricing Problems Comparison of Religare with Kotak Securities Comparison of Religare with India bulls Comparison of Religare with ICICI direct Learning’s in Religare SWOT Analysis Golden investment rules

6 Limitations 84

7 Conclusion 85-88 Recommendation

8 Bibliography 89 URLs

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Summary of the project: -

The project is about increasing the customer base of the Religare and the analysis of the

competitors of Religare. So it will help the company to increase its net worth and stand in

front of the competitors with confidence. The main work in this was to increase the

customer base of the company. Unlike other promotion mediums getting in direct contact

with the client or by talking to them, their thinking regarding the subject can be found out.

Every individual has a different perception regarding the stock market and so have to be

convinced with a different techniques. Some of the individuals are so scared of going in

the market that they have to be given special attention. They have to be told about all the

pros and cons of the market. it is really essential that a true picture of the market is

presented before them, so that they are able to make a decision to open an account or not.

Every company has some competitors and their steps have to measured

from time to time. India bulls, Kotak Securi ties and ICICI direct are the main competitors

of Religare Securities. All the three companies have some or the other competency which

make the customers bend themselves to them. Some of these have been highlighted in the

project. For this the brokers promote t heir different products and make various changes in

their brokerage rates so that they get more exposure to their clients. The market

capitalization is one of the factor to compare the companies and it gives a true picture of

the strength of the company. The products and services of the company plays a great role

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in attracting the customers, sometimes the customer leave a company just because of the

dissatisfaction he had from the company. So it is necessary that the company should target

its customers and provide them the services they want, that are the only way to lead the

market.

A BRIEF HISTORY

CHAPTER 1.

1. Pre 1990

Though the historical records relating to securities market in India is meager and obscure,

there is evidence to indicate that the loan securities of the East Indian Company used to be

traded towards close of the 18th century. By 1830’s, the trading in shares of banks started.

The trader by the name of broker emerged in 1830 when 6 persons called themselves as

share brokers. This number grew gradually. Till 1850, they traded in shares of banks and

securities of the East India Company in Mumbai under a sprawling Banyan Tree in front

of the Town Hall, which is now in the Horniman Circle Park. It is no surprise that the

majestic Phiroze Jeejeebhoy Towe rs is located at the Horniman Circle. In 1850, the

Companies Act introducing limited liability was enacted heralding the era of modern joint

stock company, which propelled trading volumes.

The American Civil War broke out in 1861, which cut off supply of cotton from the USA

to Europe. This heightened the demand for cotton from India. Cotton prices increased.

Exports of cotton grew and payments were received in bullion. The great and sudden spurt

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in wealth produced by cotton price propelled setting up companies for every conceivable

purpose. Between 1863 and 1865, the new ventures raised nearly Rs.30 crore in the form

of paid up capital and nearly Rs. 38 crore of the premium. Rarely was a share, which did

not command a premium between 1861 and 1865. The Back Bay Reclamation share with

Rs.5,000 paid up was at Rs.50,000 premium; the Port Canning share with Rs. 1,000 paid

up was at Rs.11,000 premium, etc. There was a share mania and every body was after

apiece of paper, variously called ‘allotments’, ‘scripts’ and ‘shares’. The people woke up

only when the American Civil war ended. Then all rushed to sell their securities but there

were no buyers. They were left with huge mass of unsaleable paper. This occurred then.

This also occurs today at regular intervals. There is, little seems to have changed since

then; the bubbles and burst continue to be a perennial feature of the securities market

world over.

The depression was so severe that it paved way for setting up of a formal market. The

number of brokers, which had increased during the civil war to about 250, declined.

During the civil war, they had become so influential and powerful that even the police had

only Salams for them. But after the end of the civil war, they were driven from pillar to

post by the police. They moved from place to place till 1874 when they found a

convenient place, which is now appropriately called Dalal Street after their name. They

organized an informal association on or about 9th July 1875 for protecting their interests.

On 3rd December 1887, they established a stock exchange called ‘Native Share and Stock

Brokers’ Association’. This laid the foundation of the oldest stock exchange in India. The

word ‘native’ indicated that only natives of India could be brokers of the Exchange.

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In 1880s a number textile mills came up in Ahmedabad. This created a need for trading of

shares of these mills. In 1894, the brokers of Ahmedabad formed "The Ahmedabad Share

and Stock Brokers' Association".

The 1870s saw a boom in jute prices, 1880s and 1890s saw boom in tea prices, then

followed coal boom. When the booms ended, there were endless differences and disputes

among brokers in eastern India, which was home to production of jute, tea and coal. This

provoked the establishment of "The Calcutta Stock Exchange Association" on June 15,

1908. Then followed the proliferation of exchanges, many of them even does not exist

today. The rest is history.

2.Fast Forward to 1990s

In 1980s and 1990s, it was increasingly realized that an efficient and well-developed

securities market is essential for sustained economic growth. Without venturing into a

detailed discussion, it would suffice if I just say that the securities market fosters

economic growth to the extent it augments the quantities of real savings and capital

formation from a given level of national income and it raises productivity of investment by

improving allocation of investible funds. The extent depends on the quality of the

securities market. In order to improve the quality of the market, that is, to improve market

unfair trade practices and bring the Indian market up to international standards, a package

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of reforms consisting of measures to liberalize, regulate and develop the securities market

is being implemented since early 1990s.

Legal Developments:

Control of capital issues was introduced through the Defense of India Rules in 1943 under

the Defence of India Act, 1939 to channel resources to support the war effort. The control

was retained after the war with some modifications as a means of controlling the raising of

capital by companies and to ensure that national resources were channeled to serve the

goals and priorities of the government, and to protect the interests of investors. The

relevant provisions in the Defence of India Rules were replaced by the Capital Issues

(Continuance of Control) Act in April 1947.

Though the stock exchanges were in operation, there was no legislation for their regulation

till the Bombay Securities Contracts Control Act was enacted in 1925. This was,

however, deficient in many respects. Under the constitution, which came into force on

January 26, 1950, stock exchanges and forward markets came under the exclusive

authority of the central government. Following the recommendations of the A. D. Gorwala

Committee in 1951, the Securities Contracts (Regulation) Act, 1956 was enacted to

provide for direct and indirect control of virtually all aspects of securities trading and the

running of stock exchanges and to prevent undesirable transactions in securities.

3. Posts 2000

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Gone are the days when you left orders with your broker, received conformations on the

price and quality of the shares at the end of the day and the payment made upfront or

received after delays. Your securities settlement took days to reflect in your account.

Internet has changed the way you do trading. The entire process is speedy with limited to

zero paper work. NSE launched Internet trading in early February 2000. It is the first stock

exchange in the country to provide a web-based access to investors to trade directly on the

exchange.

The process: Log on to the brokers site of your choice where you get real time quotes,

place a buy or sell order on the spot, and direct the site to debit the requisite amount. In

some time you get confirmation and after the trade settlement your bank and depository

account will reflect the changes which you can view anywhere, anytime. Online trading

has become seamless. All that you need is a PC, a modem, subscription to an Internet

Service Provider (ISP), a saving and a depository account with any bank providing online

trading facility. Along with stocks one can trade in mutual funds and investment

instruments. The advantage with online trading that you can operate in both BSE and NSE

depending on the broking firm.

NSE introduced for the first time in India a fully automated screen based trading. It uses a

modern fully computerized trading system designed to offer investor across the length and

breadth of country a safe and easy way to invest. The NSE trading system called

“National Exchange for Automated Trading” (NEAT) is a fully automated screen-based

trading system, which adopts the principle of an order driven market.

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Z Introduction to the stock market

India Stock Exchanges are a structured marketplace for the proper conduct of trading in

company stocks and other securities. There are 23 recognized stock exchanges in India,

including the Over the Counter Exchange of India for providing trading access to small

and new companies. The main services of the India Stock Exchanges all over the country

is to provide nation-wide services to investors and to facilitate the issue and redemption of

securities and other financial instruments.

Stock exchanges

The introduction of the concept of the stock exchanges in India came with the breaking of

the American Civil War and the idea materialized first in 1874 with the foundation of the

Bombay Stock Exchange at the Dalal Street in Mumbai.

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Currently, in all the India Stock Exchanges the trading system is computerized for more

efficient and transparent trading. There has been a significant boom in the degree of

development and volume of trading in the stock exchanges .

The two most important exchange houses of the Indian stock market are the Bombay

Stock Exchange and the National Stock Exchange. Many of the regional stock exchanges

have obtained the membership of these two stock exchanges in India. The index of the

Bombay Stock Exchange, BSE Sensex is a value-weighted index composed of 30

companies.

Another significant feature of the India Stock Exchanges is the regulatory agency,

Securities and Exchange Board of India or SEBI which supervises the activities of stock

markets, regulates the functioning of stock exchanges and intermediaries and registers

Foreign Investors trading in Indian scrip .

Stock Exchanges are an organized marketplace, either corporation or mutual organization,

where members of the organization gather to trade company stocks or other securities. The

members may act either as agents for their customers, or as principals for their own

accounts.

Stock exchanges also facilitate for the issue and redemption of securities and other

financial instruments including the payment of income and dividends. The record keeping

is central but trade is linked to such physical place because modern markets are

computerized. The trade on an exchange is only by members and stockbroker do have a

seat on the exchange.

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List of Stock Exchanges In India

Bombay Stock Exchange

National Stock Exchange

\

Regional Stock Exchanges

1. Ahmedabad Stock Exchange.

2. Bangalore Stock Exchange

3. Bhubaneshwar Stock Exchange

4. Calcutta Stock Exchange

5. Cochin Stock Exchange

6. Coimbatore Stock Exchange

7. Delhi Stock Exchange

8. Guwahati Stock Exchange

9. Hyderabad Stock Exchange

10. Jaipur Stock Exchange

11. Ludhiana Stock Exchange

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http://www.bseindia.com/index_op.htm

12. Madhya Pradesh Stock Exchange

13. Madras Stock Exchange

14. Magadh Stock Exchange

15. Mangalore Stock Exchange

16. Meerut Stock Exchange

17. OTC Exchange Of India

18. Pune Stock Exchange

19. Saurashtra Kutch Stock Exchange

20. Uttar Pradesh Stock Exchange

21. Vadodara Stock Exchange

In 1860, the exchange flourished with 60 brokers. In fact the 'Share Mania' in India began

when the American Civil War broke and the cotton supply from the US to Europe stopped.

Further the brokers increased to 250.

At the end of the war in 1874, the market found a place in a street (now called Dalal

Street). In 1887, "Native Share and Stock Brokers' Association" was established. In 1895,

the exchange acquired a premise in the street, which was inaugurated in 1899.

ESTABLISHMENT OF SEBI

The Securities and Exchange Board of India was established on April 12, 1992 in

accordance with the provisions of the Securities and Exchange Board of India Act, 1992.

In 1988 the Securities and Exchange Board of India (SEBI) was established by the

Government of India through an executive resolution, and was subsequently upgraded as a

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fully autonomous body (a statutory Board) in the year 1992 with the passing of the

Securities and Exchange Board of India Act (SEBI Act) on 30th January 1992. In place of

Government Control, a statutory and autonomous regulatory board with defined

responsibilities, to cover both development & regulation of the market, and independent

powers have been set up.

The Preamble of the Securities and Exchange Board of India describes the basic functions

of the Securities and Exchange Board of India as

“…to protect the interests of investors in securities and to promote the development

of, and to regulate the securities market and for matters connected therewith or

incidental thereto”

The basic objectives of the Board were identified as:

1. To protect the interests of investors in securities.

2. To promote the development of Securities Market.

3. To regulate the securities market.

SEBI has introduced the comprehensive regulatory measures, prescribed registration

norms, the eligibility criteria, the code of obligations and the code of conduct for different

intermediaries like, bankers to issue, merchant bankers, brokers and sub-brokers,

registrars, portfolio managers, credit rating agencies, underwriters and others. It has

framed bye-laws, risk identification and risk management systems for Clearing houses of

stock exchanges, surveillance system etc. which has made dealing in securities both safe

and transparent to the end investor.

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Another significant event is the approval of trading in stock indices (like S&P CNX Nifty

& Sensex) in 2000. A market Index is a convenient and effective product because of the

following reasons:

It acts as a barometer for market behavior;

It is used to benchmark portfolio performance;

It is used in derivative instruments like index futures and index options;

It can be used for passive fund management as in case of Index Funds.

Bombay stock exchange

Of the 22 stock exchanges in the country, Mumbai's Bombay Stock Exchange is the

largest, with over 6,000 stocks listed. The BSE accounts for over two thirds of the total

trading volume in the country. Established in 1875, the exchange is also the oldest in Asia.

Among the twenty-two Stock Exchanges recognized by the Government of India under the

Securities Contracts (Regulation) Act, 1956, it was the first one to be recognized and it is

the only one that had the privilege of getting permanent recognition ab-initio.

The main aims and objectives of the BSE is to provide a market place for the purchase and

sale of security evidencing the ownership of business property or of a public or business

debt. It aims to promote, develop and maintain a well-regulated market for dealing in

securities and to safeguard the interest of members and the investing public having

dealings on the Exchange. It helps industrial development of the country through efficient

resource mobilization. To establish and promote honorable and just practices in securities

transactions

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National stock exchange

The National Stock Exchange (NSE), located in Bombay, is India's first debt market. It

was set up in 1993 to encourage stock exchange reform through system modernization and

competition. It opened for trading in mid-1994. It was recently accorded recognition as a

stock exchange by the Department of Company Affairs. The instruments traded are,

treasury bills, government security and bonds issued by public sector companies.

The number of members trading on the exchange has been on a steady increase, helping

integrate the national market and providing a modern system with a complete audit trail of

all transactions.

Indian stock market marks to be one of the oldest stock market in Asia. Stock Market

which is a market where the trading of company stock, both listed company securities and

unlisted take place. It is different from stock exchange because it also puts all stock

indices and stock index movements on the same platform.

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CHAPTER 2

Introduction to the project:-

The project carried on by me was “Analysis of competitors of Religare increasing” was

to a large part related to the work of tele calling. We were basically not given any targets

but were supposed to bring in enough accounts and margin to increase the customer base

of my company. For 2 months, I carried on my project and in continuance with it; we also

worked on the two competitors of the Religare and learned a little bit about the volatility

of the market.

Objective of the project.

The project was mainly related to bring the various factors before the company, which

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were making it a bit weak against the other stock broker companies. It was targeted to

increase the customer base of the company and to learn about the stock market too. I

carried on the project successfully and tried to find out the various factors which were

making Religare a bit weak before its competitors, so that some major steps can be taken

to remove those. I tried to work on the various steps to increase the customer base to

provide a good amount of profit to them so that it could be beneficial for them.

Significance of the project.

In this era of competition every one wants to be the best in the market and perform the

best he can. In that regard, my project helped Religare in knowing its weaknesses and

strengths, so that these could help Religare to improve its working and expand itself so

that it can increase its market share. It helped me to learn about the stock market, its

various aspects.

Through telecalling, I got to know that, now also the individual’s are not aware of the

basic benefits of the demat account and are scared to invest in the market. This project was

necessary to know how an individual reacts, when he is offered a demat account. Through

my study I got to know that the individuals are not enough educated to take the decision

for the stock market and they are afraid to invest in the stock market.

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Scope of the study:

My project was mainly related to increasing the customer base of Religare. I used to call a

number of customers and tried to convince them. We had to undergo a deep learning stage

because initially, it was not easy to talk to different customers because generally the

individuals are not aware of the market and the demat account and feel scared of investing

in the market.

So initially we worked on how to talk and try to convince them on certain ground. Next,

we also studied the competitors of Religare and for that we asked the different

Relationship managers about what makes Religare different from other stock broking

companies and what points made it weak against them.

We talked to various customers and got to know many points in favour and against of

Religare which were helpful for me to carry on my study and provide some data to the

company so that it can help them to improve themselves.

Managerial usefulness of the project: -

In this competitive world, it is important to know each and every step of the competitor so

that you can give an answer to them. So I carried out the project to analyze the

Competitors so that they can improve their management and make them concrete. Religare

will have to take different steps regarding the various promotional measures to conduct

and also for the decreasing the formalities in the process of account opening so that the

cost of the whole process can be reduced and more services can be provided to the clients.

It is also necessary for the company to look for a better management so that it can work in

an efficient manner and can become a strong company otherwise.

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It is also important to know that how the normal people see Religare means how they

perceive Religare as a stock broking company. Do they have enough trust in the company

or some steps have to be taken to change the image of the company.

CHAPTER 3.

RELIGARE SECURITIES

Religare securities limited is one of the equity and securities firm in India. The company is

handling a large amount of volumes traded on the National stock exchange and in case of

the online trading the company holds a reasonably good share in the stock market. The

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company mainly deals in Equity broking, Depository participant services, portfolio

management services, institutional brokerage and research.

Religare securities limited is a member of the National Stock Exchange of India, Bombay

Stock Exchange of India, Depository Participant with National Securities Depository

Limited and Central Depository Services (I) Limited, and SEBI approved Portfolio

Manager

* Religare has been constantly innovating in terms of product and services and to offer

such incisive services to specific user segments it has also started the NRI, FII, HNI and

Corporate Servicing groups. These groups take all the portfolio investment decisions

depending upon a client’s risk / return parameter.

* Religare has a very credible Research and Analysis division, which not only caters to

the need of our Institutional clientele, but also gives their valuable inputs to investment

dealers.

* Religare is also providing in-house Depository services to its clientele and is one of

the leading depository service providers in the country.

Offerings of Religare securities:

Trading in equities with Religare truly provides for all the investment needs. It ensures a

speculative trading experience through –

A highly process driven, diligent approach

Powerful research and analytics

One of the “best in class” dealing rooms

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Above all this, religare has one of the largest retail networks, with its presence in more

than 1300 locations across more than 400 towns and cities.

Religare provides its customers the dedicated relationship managers and dedicated dealers

who facilitate trading and serve the post trade needs.

Research and advisory.

Religare provides research services for clients to facilitate their investment decisions.

Driven by ethical business practices, they keep a keen eye on the market with consistent

tracking of their recommendations to provide the clients suitable and timely insights.

Its various research products –

Fundamental research

Technical research

Daily reports

Intra-day trading tech calls

Intra-day derivative calls

Directional futures and options calls

Structured products

- Index arbitrage

- Volatility trading

-

Value additions

You can: -

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* Access your ledger balances and account information over Internet and at the branch

Help

* Browser and application based platforms can also be made available for equity trading

* Access to all your accounts through your unique Customer Relationship Number

(CRN)

The Religare Edge

* Powerful research and analytics supported by a pool of highly skilled research

analysts

* Ethical business practices

* Offline/Online delivery models

* Single window for all investment needs through unique CRN

GROUP OF COMPANIES

Religare Securities Limited

1. Member of National Stock Exchange of India and Bombay Stock Exchange of India.

2. Depository Participant with National Securities Depository Limited and Central

Depository Services (I) Limited

3. A SEBI approved Portfolio Manager

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Religare securities limited serve a platform to all segments of investors to avail the

opportunities offered by investing in Indian equities either on their own or through

managed funds in Portfolio Management.

Religare Comdex Limited

The continuously growing turnover which commodities market has seen is incredible,

benefiting both producers and buyers. These amazing results have transformed

commodities as a most sought-after asset class. And this has caught attention of the whole

world.

Commodities market is particularly significant to our country as India is essentially a

commodity-based economy. Therefore, it should not be surprising to see that Indian

Commodities Market is also taking giant strides, growing at a scorching pace and is well

all poised to occupy its rightful place in the world. This has provided Indian investors with

new emerging investment opportunities in the arena of commodities.

Commodity Derivatives trading in India is now done through the electronic trading

platform of two popular exchanges NCDEX (National Commodity & Derivative

Exchange Limited) and MCX (Multi Commodity Exchange). The various commodities

being traded on the exchanges include precious metals, crude oil, and agro-commodities

amongst others.

Religare Comdex Limited is a member of both the exchanges (MCX & NCDEX) that

allows you to trade in all the commodities traded in both the exchanges. Presently, trading

in commodities is restricted to futures contracts only.

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Member of National Commodity Derivative Exchange and Multi

Commodity Exchange.

RCL provides platform to both agro and non-agro commodity traders to derive the actual

price of the commodity and also to trade and hedge actively in the growing commodity

trading market in India.

Religare is a corporate financial service provider with very

sound financial base and backing. It is managed by the best

skilled professionals in the market and boasts to have the widest

reach in India through its regional, zonal and branch offices

spread across the country.

Investment Philosophy

The investors are better served by a disciplined investment approach, which combines an

understanding of the goals and objectives of the investor with a fine tuned strategy backed

by research.

* Stock specific selection procedure based on fundamental research for making sound

investment decisions.

* Focus on minimizing investment risk by following rigorous valuation disciplines.

* Capital preservation.

* Selling discipline and use of Derivatives to control volatility.

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* Overall to enhance absolute return for investors.

Their Schemes

Panther

The Panther portfolio aims to achieve higher returns by taking aggressive positions across

sectors and market capitalizations. It is suitable for the “High Risk High Return” investor

with a strategy to invest across sectors and take advantage of various market conditions.

Tortoise

The Tortoise portfolio aims to achieve growth in the portfolio value over a period of time

by way of careful and judicious investment in fundamentally sound companies having

good prospects. The scheme is suitable for the “Medium Risk Medium Return” investor

with a strategy to invest in companies, which have consistency in earnings, growth and

financial performance.

Elephant

The Elephant portfolio aims to generate steady returns over a longer period by investing in

Securities selected only from BSE 100 and NSE 100 index. This plan is suitable for the

“Low Risk Low Return” investor with a strategy to invest in blue chip companies, as these

companies have steady performance and reduce liquidity risk in the market.

Caterpillar

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The Caterpillar portfolio aims to achieve capital appreciation over a long period of time by

investing in a diversified portfolio. This scheme is suitable for investors with a high-risk

appetite. The investment strategy would be to invest in scrip which are poised to get a re-

rating either because of change in business, potential fancy for a particular sector in the

coming years/months, business diversification leading to a better operating performance,

stocks in their early stages of an upturn or for those which are in sectors currently ignored

by the market.

Leo

Leo is aimed at retail customers and structured to provide medium to long-term capital

appreciation by investing in stocks across the market capitalization range. This scheme is a

mix of moderate and aggressive investment strategies. Its aim is to have a balanced

portfolio comprising selected investments from both Tortoise and Panther. Exposure to

Derivatives is taken within permissible regulatory limits.

The Religare Edge

Religare provides a diligent, transparent & process driven approach and ensure that the

investor’s money gets the care it deserves.

No experts, only expertise. Religare PMS with its solid reputation of an ethical and

scientific approach to financial management. While we offer you the services of a

Dedicated Relationship Manager who is at your service 24x7, we do not depend on

individual expertise alone. For you, this means lower risk, higher dependability and

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unhindered continuity. Moreover, you are not limited by a particular individual’s

investment style.

No hidden profits. We ensure that a part of the broking at Religare Portfolio Management

Services is through external broking houses. This means that your portfolio is not churned

needlessly. Using more broking firms gives us access to a larger number of reports and

analysis, enabling us to make better, more informed decisions. Furthermore, your portfolio

is customized to suit your investment objectives.

Daily disclosures. Religare Portfolio Management Services gives you daily updates on

your investment. You can pinpoint where your money is being invested, 24x7, instead of

waiting till the end of the month to keep track.

No charge till you profit (For Profit Sharing Management Fees only)* .So sure are we of

our approach to Portfolio Management that we do not charge you for our services, until

your investments start showing profit. With customized investment options Religare

Portfolio Management Services invites you to invest across five broad portfolios to suit

your investment needs.

Investment Banking

Religare provide innovative, integrated and best-fit solutions to the corporate customers. It

is their continuous endeavor to provide value enhancement through diverse financial

solutions on an ongoing basis, through offerings like Corporate Debt, Private Equity, IPO,

ECB, FCCB, GDR/ADR etc.

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Investment Banking with Religare offers the following services:

Corporate Finance

Religare focus on finding right and relevant partners for their clients, who not only help in

adding value but also improve the future valuation of the organization. Religare specialize

in structured financing and providing advisory services related to financial planning,

modeling and advising on financial requirements.

Corporate finance products offered:

Placement of Debt

* Syndication of Domestic Loan / Foreign Currency Loan

* Securitization

* Debt Swap & Loan Restructuring

* Short Term Corporate Debt

* Working Capital (Cash Credit & Short term Loan)

* Capital Market Instruments

* Overseas Acquisition

Placement of Equity (Private Equity)

* Both for listed and unlisted companies

33

Merchant Banking

* IPO/FPO/RIGHTS

* Mergers & Acquisitions

* Corporate Advisory Services

* ADR/GDR/FCCB

* BUY BACK OF SHARES

Research

Religare believe in providing independent research for clients to make investment

decisions, with strict emphasis on self-regulation, avoiding possible conflict of interest in

objectivity.

Backed by a strong pool of highly skilled research analysts, Religare offers a varied

research products and services.

Research Products

* Fundamental research

* Technical research

* Daily reports

* Intraday trading tech calls

34

* Intraday Derivative call

* Directional F&O calls

* Structured products

* Index Arbitrage

– Arbitraging between Index (NIFTY) Futures and its constituents (Underlying Stock

Futures).

* Volatility Trading

– Arbitrage between volatilities i.e. between implied volatility of options and

forecasted volatility of underlying stock futures.

Why customer trade with Religare?

1. Personal Assistance

Dedicated dealers for facilitating trading and post trade needs.

Dedicated Relationship Managers for assisting multiple investments needs.

2. Research & Advisory

Regular news and updates on market

Research service over SMS to keep you abreast

Daily and weekly technical reports

35

A complete information report on results and performance individual companies.

Complete reports on various economic sectors and their performance along with

analysis of few major companies in that sector

Trading calls in Futures & Options

Daily capsule of Market indices and index movement, national and international

corporate news, and their performance along with forth coming IPO tracker.

3. Add-On’s

Access to all your accounts through your Customer Relationship Number (CRN)

Access your ledger balances and account information over internet, branch and call

center

PRODUCT & SERVICES

Equity & Derivatives

Commodity

Depository

Portfolio Management Services

International Equity & Commodity

NRI Services

Investment Banking

Corporate Advisory Group

36

Religare provides two type of Product in Equity & Derivative market:

R-ACE (Religare Advanced Client Engine) is a group of highly sophisticated trading

platforms meant for tech-savvy individuals. Various platforms of R-ACE have been

designed to suit the varying needs of different investors. It is fully automated platform,

wherein the client may do all his investments through Internet.

R-ACE clients also have the option to trade on following types of product.

A. R-ACE

B. R-ACE Lite

C. R-ACE pro

R-ally

Account Activation Charges Rs.299/-

Minimum margin of Rs.5000/- required

No software installation required, easily accessible on browser

NSE cash segment, NSE F&O and BSE on single platform

Trade online and over phone

Access your ledger balances and account information over Internet, SMS and

phone.

Integrated DP, back- office and trading account

Online transfer of funds through multiple banks

Lifetime free DP account (No annual maintenance charges)

Earn interest on cash margin deposited with us

37

247 Customer support cente

R-ACE lite

Account Activation Charges Rs.499/-


No software installation required, easily accessible on browser


Real- time streaming quotes

Alerts

Hot key functions


phone.





247 Customer support center

R-ACE pro

Account Activation charges Rs. 999/-


Traders terminal on your desktop



38

Advanced alerts

Technical charting (intraday and EOD)

Multiple watch lists

Advanced hot- key function

Derivative chains

Futures & Option calculator


phone.




Trade online and over phone


247 Customer support center

RELIGARE’s ALLY also known as R-ALLY is a perfect partner for savvy investors.

It has been designed to provide world-class experience and expertise to investors. Clients

opting for this service would be provided services managed by a team of dedicated

relationship managers and experienced trade dealers. They would not only assist the client

in information dissemination but would also take care of all post trade requirements

R-ALLY clients also have the option to trade on following types of product.

A. R-ALLY

39

B. R-ALLY Lite

C. R-ALLY pro

R-ALLY

R-ALLY clients have no option to trade on their own through our online platforms.

No subscription fees

No Enrolment Deposit

Brokerage:

Jobbing: 0.10% each side + All Taxes

Delivery: 0.50% each side + All Taxes

(Negotiable based on volume)

R-ALLY lite

Account Activation charges Rs. 500/-

Browser based platform, easily accessible over internet explorer from anywhere

Minimum margin to be maintained Rs.5000

No software installation required




Hot key function

40


Trade Online and Over phone at Branch

Brokerage:

Trading 0.10% each side + All Taxes

Delivery 0.50% each side + All Taxes


R-ALLY pro

Application based platform

Account Activation charges Rs. 1800 (refundable subscription fees )

Traders’ terminal on your desktop


Real time streaming quotes


Alerts and triggers

Advanced Hot key functions


Trade Online and Over phone at Branch

Make and save your own workspace

View charts

Brokerage :

Trading 0.10% each side + All Taxes

Delivery 0.50% each side + All Taxes


41

Problems of Religare

Religare has failed to evolve into a widespread Internet broking firm because of its un-

focused promotional strategies (advertisements in electronic media, newspapers, etc)

across the length and breadth of India. Although it is a well-known broking house in some

states like Maharashtra, Gujarat, etc. It still lacks considerable awareness in the northern

parts of India where its competitors have been building their reputation very rapidly.

The other problem faced by Religare is that they give more attention to HNIs (high net

worth individuals) as compared to retail investors or individuals; this is why volumes of

trading at Religare are less as compared to its competitors.

CHAPTER 4

Research methodology

Telemarketing

42

Use of the telephone as an interactive medium for promotion or promotion response; also

known as teleselling. Telemarketing, a response vehicle, includes receiving orders,

inquiries, and donation pledges in response to print and broadcast advertising, catalogs,

and direct-mail promotions, and also receiving customer inquiries and complaints.

Incoming telephone callers are usually given access to an in-wats number but may also

call collect or call at their own expense. Outbound telemarketing is used to follow-up on

inquiries, to sell products or services, to clarify or upgrade an order, or to gather

information about consumers or other aspects of the market.

Unlike other promotion mediums, outbound telemarketing calls interrupt the consumer by

demanding immediate attention and are not identifiable as a promotion before the

consumer is interrupted. Therefore, telemarketers must be particularly careful not to

antagonize the consumer. For example, calls should not be made at inconvenient hours

such as dinnertime or early morning. Every caller to get the most value from the time and

money spent on each call and to avoid angering or annoying the person receiving the call

should utilize a carefully written script. Some elaborate calling scripts include answers to

every objection a prospective buyer might mention. In contrast, a few telemarketers have

utilized a prerecorded message rather than a "live" caller; the consumer can respond to the

recording by pressing numbers on a touch-tone telephone dial. Telephone numbers can be

dialed at random by a computer that relays the call to an operator when a contact is made.

Calls are frequently made to pre-selected individuals such as current or prior customers or

likely prospects selected from a rented list.

Business-to-business marketers to identify qualified leads, avoiding travel and other costs

associated with personal sales calls, use telemarketing heavily. One telemarketing call can

cost four times as much as a direct-mail piece but can generate as much as two to six times

43

the response. The success of a telemarketing program is measured in terms of contacts

made (reaching the right person), attempts made (calls that do not reach the right person,

busy signals, or no-answers), and conversions (completed sales, surveys, etc)

TYPES OF TELE-MARKETING

Inbound telemarketing representatives answer questions, collect information, and process

orders from calls that come into the call center. The inbound calls may be generated as a

result of any one of a number of methods, including: print media advertisements

(newspapers and magazines), broadcast media (radio and television), direct mail

advertising (just don’t call it junk mail), and Internet ads that feature a toll-free number.

With an inbound telemarketing effort, the representatives wait for the call to ring into the

call center.

Outbound telemarketing representatives, on the other hand, initiate the call to the customer

or prospect, making use of technology such as predictive dialers. Outbound telemarketing

efforts use lists of numbers, with varying degrees of qualification, to reach as many

prospects as possible in a given time frame. The lists can come from a variety of sources,

whether specifically generated through a direct response campaign such as publisher’s

bingo cards or a range of Internet marketing endeavors. With an outbound telemarketing

effort, the call center initiates the contact.

They have a very focused list of service offerings primarily

specializing in telemarketing services, including:

Business-to-Business (B2B) telemarketing

44

Business-to-Customers (B2C) telemarketing

Inbound telemarketing

Outbound telemarketing

Interactive Voice Response (IVR) telemarketing

The Strategies of Telemarketing

Most Telemarketing professionals consider Telemarketing to be a marketing discipline

that uses remote selling and services techniques to execute a marketing strategy. In brief, it

is far more than an 800 number, or a bank of operators waiting to take your order. Used

properly, Telemarketing becomes a driving force in a company's strategic planning.

Preparing for the Telephone Sales Call

In telephone selling, a haphazard approach usually leads to haphazard results. To

maximize your telephone time, it is essential to prepare. Preparation calls for a disciplined

system. Successful telephone salespeople start with a call list and develop a system for

tracking where they are with each call.

The fundamentals of any effective telephone system include:

For prospecting, a concentrated block of time that you dedicate to your calls, not

just one call between other activities.

An objective for number of calls you want to complete per day.

Your client or prospect list for the day -- in priority order.

A well-organized desk and environment.

45

An objective (what you want to see happen) for each call.

A record of each call. (It should be the client information, details, next steps)

A memo system to trigger actions and follow-up.

Getting Through to the Right Person

Getting through to the right person is essential, whether are selling over the telephone or

face-to-face. Not only is a presentation to the wrong person a waste of time, but it can also

endanger the sale. Several points follow:

1. Finding the Decision Maker-When dealing with a small business, it usually is not

difficult to identify the individual with authority to make a decision; however, it is

not so cut and dried when calling a large organization for the first time. Naturally,

when a reliable source has recommended a specific individual as the decision

maker, there is not any problem. But without the advantage of such information,

getting through to the right person may require some fairly fancy footwork

2. Getting Through the Third Party-the Screener

A third party stands between the salesperson and the individual he is trying to

reach. It may be a receptionist, an assistant, or a spouse. The most commonly

encountered third party is probably the private secretary, and he is also the most

skilled at screening calls.

46

3. Speaking with Authority-This is especially important in getting through the

screener, whose job is to separate trivial calls from important ones. Getting through

the screener will never be a problem for you if you remember that you are

important.

4. Leaving a Message-Leaving a message that works is an integral part of selling on

the telephone. Often, you will not be able to get through to an individual on the

first call, so it will be necessary for you to call back or to leave a message.

5. Calling Back-When an individual is difficult to reach and does not return your call,

do not hesitate to call again. All these techniques take practice, but developing

them is an essential part of good telephone selling. In short, you must get through

to the prospect before anything can be sold.

There will always be some instances when a caller will have to make a series of calls

before finally getting to talk directly with the prospect. One must work on establishing

rapport with the screener, while maintaining an image of authority. Whether he leaves a

message after the first call or the fourth, leaving an effective message also requires

authority and a quiet suggestion of urgency.

47

CHAPTER 5

Findings and analysis: -

Tele calling

There is a bend towards the bond and derivative market but most of the investors today

also invest in the shares only, now it is to be taken into consideration that why this trend is

there. When I asked various individuals through telecalling, I came to realize in spite of

48

greater risk in the market the investors invest in the shares only. An individual wants

higher returns; if he is investing some amount in spite of he is investing a small amount.

Every individual has only one target in his mind to get a good return if he is investing for a

long term. But there are some people who invest to get a fixed return and do not want to

indulge in the risk against his savings, so he wants that his money should be safe and he

should also get enough returns from the market.

With the increase in the cyber education, the awareness for the online trading has

increased by leaps and bounds. When I talked to the individuals, I got to know that the

investors want such kind of service through which he is able to save a large amount of

time and should be able to transact as fast as possible. So most of the individuals who

opened the accounts found this facility as a good means through which they can make

good returns and save their time also. This facility attracted most of the customers and

they were excited to get this facility. I am sure that this trend will move further and will

generate enough returns for the company and better services for the investors.

With regard to the awareness of the brand Religare, most of the individuals are not aware

of the brand Religare. Religare do have a reasonable amount of Brand awareness in terms

of a premier Retail stock broking company but then also it has to work hard to get into the

minds of the investors. Religare will have to position itself in the minds of the investors so

that it can be the first choice of the investors. This time also most of the investors prefer to

open their account in India bulls in spite of Religare. The customers do not want to switch

themselves to any other stock broking company so it requires a huge amount of work on

part of Religare to introduce themselves as investors friendly so that the customers can

switch on or opt for Religare securities.

49

The same way the customers are not aware of the services provided by Religare securities.

The customers are not aware of the different services provided by Religare. During tele

calling the individuals used to ask about whether the company will provide them the

various facilities or not, what are the charges for the dealings, what will be the different

procedures to work out the formalities. Most of the investors were confused and

ambiguous to invest through Religare because they were not well versed with the different

facilities of Religare.

The individuals are like they do not want to invest or have some previous perceptions in

mind, not to invest in the stock market. So that was one of the biggest reason that we have

to convince them a lot to open an account. Most of the individuals were like that they were

scared to open an account because they will face a loss and this is a kind of speculation

through which they will only loose their money. This is probably because of two main

reasons:

1. Lack of promotion and unfocussed approach towards Product awareness

2. Non – transparent marketing policies of the company

Hence, the company should crystallize its products and should indulge in aggressive

marketing and promotion. Proper education should be provided to the different individuals

so that they get familiar to the different products and know the benefits of

getting huge returns by investing in the stock market.

50

In spite of the huge returns that the share market promises, we see that there is still a

dearth of active traders and investors. This is because of the non – transparent structure of

the Indian share market and the skepticism of the target audience that is generated by the

volatility of the stock market. The investors generally feel to trade as less and not more.

Generally it is seen that most of the investors deal in delivery basis and restrict themselves

from entering in intraday trading. So most of the time the investors do not trade properly.

Analysis with the competitors

KOTAK SECURITIES

Kotak Securities helps investing from the client’s perspective, and make

recommendations based on their needs. One of the important goals is

to simplify investing for the clients, along with this they also provide

long term values to the customers. Listed below are a few important

features:

Stability: they are a 100% subsidiary of Kotak Mahindra Bank and one

of the oldest and largest broking firms in the Industry. They have been

the first and only NBFC to receive the license to be converted into a

bank. Innovators in the Industry: they also have been the first in

providing many products and services which have now become industry

standards.

51

http://www.kotaksecurities.com/home/index.shtml

First to provide Margin Financing to the customers

First to enable investing in IPO’s and Mutual Funds on the phone

Providing SMS alerts before execution of depository transactions

Launching of Mobile application to track portfolio

Auto Invest - A systematic investing plan in Equities and Mutual

fund

Provision of margin against securities automatically against

shares in the client’s Demat account

Reliability: their accolades are a testimony to the services and high

standards. They have been awarded as:

Best Performing Equity Broker in India – CNBC Financial Advisor

Awards 2008

Avaya Customer Responsiveness Awards (2007) in Financial

Services Sector

Best Brokerage Firm in India" by Asia money in 2007

52

The Leading Equity House in India' in Thomson Extel Surveys

Awards for the year 2007

Euro money Award (2006 & 2007) - Best Provider of Portfolio

Management : Equities

Value: Whether you are a customer with a small or large wallet size,

you can expect us to bring value to you in every form.

Special features

Quality Research

Quick trade execution

Low brokerages

Accounts that suit your investment profile

Risk Profiler

53

Superior Customer Service

Co mpany Background

Kotak securities is the retail arm of kotak securities. Kotak Securities limited is a

joint venture between Kotak Mahindra Bank and Goldman Sachs.

Online Account Types

• Twin Advantage / Green Channel: 2 DP’s, Limit against shares

• Free Way: Flat Rs 999 Cover Charge p.m, 0.03% per transaction

• High Trader: 6 Times Exposure Cash & Derivatives, Auto sq off 2:55

Pricing of KOTAK

• Account Opening: Rs 500

• Demat: Rs 22.5 p.m

54

• Initial Margin: Rs 5000(Compulsory)

• Min Margin Retainable: Rs 1000

• Brokerage Slab wise: Higher the volume, lower the brokerage. Even older

customers (on 0.25% & 0.40

Problems of Kotak securities

Rigid Account Opening Terms

No Flexibility of A/c opening charges (Rs 500) + Compulsory margin Rs 5000/-

Account opening free with Rs 10,000 Margin OR Competitor Contract Note.No

Flexibility in Leverage – Dependent on Type of Account (4 to 6 times only) No

flexibility in Brokerage, driven by slab structure.

No Customization of commercial Terms.Restricted Access to Terminal like produ

QuickTime™ and aTIFF (Uncompressed) decompressor

are needed to see this picture.

India bulls

55

India bulls is India’s leading Financial Services and Real Estate company

having over 640 branches all over India. India bulls serves the financial

needs of more than 4,50,000 customers with its wide range of financial

services and products from securities, derivatives trading, depositary

services, research & advisory services, consumer secured & unsecured

credit, loan against shares and mortgage & housing finance. With

around 4000 Relationship Managers, India bulls helps its clients to

satisfy their customized financial goals. India bulls through its group

companies has entered Indian Real Estate business in 2005. It is

currently evaluating several large-scale projects worth several hundred

million dollars.

Company Background

India Bulls is a retail financial services company present in 70 locations covering

62 cities. It offers a full range of financial services and products ranging from

Equities to Insurance. 450 + Relationship Managers who act as personal financial

advisors

Online Account Type

•Signature Account: Plain Vanilla Account with focus on Equity Analysis. The

equity analysis is a paid service even for A/c holders

56

•Power India bulls: Account with sophisticated trading tools, low commissions

and priority access to R.M

Pricing of IB Accounts

Signature Account

•Account Opening: Rs 250

•Demat: Rs 200 if POA is signed, No AMC for this DP

•Initial Margin: NIL

•Brokerage: Negotiable

Power India Bulls

•Account Opening: Rs 750

•Demat: Rs 200 if POA is signed, No AMC for this DP

•Initial Margin: NIL

•Brokerage: Negotiable

Problems Of India Bulls

POA for Clients DMAT

57

Charges are levied to move shares from IB pool Account to client DP account All shares

held by client trading with IB are moved to IB Pool Account and the same is shown as a

reflection in client DP account.

Paid Research Services

Access to a research even for an IB trading account holder is charged a min of Rs 500 a

month.

Margin funding hoax

The interest on funding starts on leveraged delivery trades from T+1 day itself @21% p.a,

on a daily basis.

The role of Relationship Manager

Each RM is looked upon as a revenue generator and he gets a % on business generated

from client. This can lead to over leveraged (Interest) & high frequency (Brokerage)

trading, which may not be in the best interest of the client.

ICICI

A subsidiary of ICICI Bank - the largest and most recognized private

bank in India – ICICI Securities Ltd is premier Indian Investment Bank,

with a dominant position in its core segments of its operations -

58

Corporate Finance including Equity Capital Markets Advisory Services,

Institutional Equities, Retail and Financial Product Distribution.



ICICI DIRECT

Corporate finance



ICICI Securities Ltd is a premier Indian Investment Bank, with a dominant

position in its core segments of its operations - Corporate Finance including

Equity Capital Markets Advisory Services, Institutional Equities, Retail and

Financial Product Distribution.

Institutional equities



59

ICICI Securities Limited assists global institutional investors to make the right

decisions through insightful research coverage and a client focused Sales and

Dealing team.

Retail equities



ICICI Securities has the largest reach to the retail segment through its two

pioneering brands – ICICIdirect.com and ICICIdirect.

Company Background

ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an affiliate of

ICICI Bank Limited and ICICI Bank Limited owns the Website.

Account Types

ICICI Direct e-invest Account:

Premium trading interface of ICICI Direct Link is given to DBC partners and HNI’s

Plain Vanilla Account with focus on 3 in 1 advantage. Differentiated in services

within the account.

60

1. Cash on spot

2. Margin Plus

Account Opening: Rs 750

Schemes: For short periods Rs 750 is refundable against brokerage generated in

a qtr. These schemes are introduced 3-4 times a year.

Demat: NIL, 1st year charges included in Account Opening Plus a facility to open

additional 4 DP’s without 1st yr AMC.

Initial Margin: Nil

Brokerage: All brokerage is inclusive of stamp duty and exclusive of other taxes.

Slab wise brokerage ranges from 0.75% to 0.25% depending on volume.

Problems Of ICICI Direct

Poor online Interface

Slow website interface with no real-time quotes creates dissatisfaction among high

frequency traders

Margin trading restriction

61

The margin trading system is available up to 2:45 p.m, with outstanding net positions

under margin segment automatically squared off at any time between 2:45 – 3:30 p.m.

Thus no control of square off price.

Morning Trades Issue

Being one of the websites with largest no of after hour orders which are pushed 1st thing

in the morning, creates a choking of orders to the exchange, causes delay of confirmations

for new order placed during the early morning trades.

Restriction of BTST

The sale of shares purchased is restricted to T+1 day and is not permitted on T+2 Day.

No leverage for Delivery trades

Delivery is restricted to the total money allocated into the trading account.

No flexibility on leverage on Intra-day trades

The leverage of 4 times is available for intraday trades.

Restriction of Bank Account

The choice of bank is restricted to ICICI Bank.

Higher Brokerage rates with slabs

The delivery brokerage is pegged at 0.75% and trading at 0.10% each side, this makes is

very unviable for customers dealing in large volumes. Although progressively the delivery

and trading brokerage reduce as volumes go up.

62

Religare with Kotak Securities:

In Religare the client can open an account without paying a single rupee, but that is up to a

certain period after that the client has to pay an amount of Rs. 500, which is the same as of

Kotak Securities. In Religare it is not necessary that the client has to pay a margin but he

can also open the account with a zero balance also, but in kotak, he has to pay Rs. 5000 as

an initial margin. In Religare, the client can start his/her account whenever he wishes but

in Kotak he has to provide margin money while opening the account. In Kotak, the client

has a different slab for different volumes traded by him as if he is trading with a higher

volume, he will have to pay a lower brokerage but if he is trading in a low volume then he

will have to pay a higher brokerage. In Religare, we also have these kinds of slabs but a

main feature of Religare is its different products available for the customer. The customer

is at an option to choose from those. He can choose a product, which has a margin to be

kept in the account, but at the same time he can also opt for an account where he is free to

put money at the time he himself wishes and trade at the time he wants.

market capitalisation

54%

46% religare

kotak sec

63

Religare with India bulls: -

India bulls are the biggest competitors of Religare securities limited. While tele calling

also the most emphasis was on the clients of India bulls. In spite of being costly the clients

do not want to change themselves to any other stock broking company. The company has

the highest demat account opening charge but then also the customers get attracted

towards this company mostly. It is due to the service the company is providing to its

clients. India bulls have the highest AMC whereas Religare securities do not take AMC

for the first month but starts taking AMC from the second year as Rs. 250. In my summer

training, during the tele calling I came across many India bulls clients who were investing

with a Hugh amount but when asked to change themselves they refused to do that because

they were so much satisfied with the services provided by India bulls that they didn’t mind

giving a high brokerage to them. Infact India bulls charges a greater brokerage in intraday

as well as in delivery but the clients are satisfied with the services of India bulls and do not

even want to transfer their high net worth into any other stock broking company. They feel

that their money is safe with India bulls. For this I think that Religare should start

increasing the trust among the clients so that they can be recognized as a good and

trustworthy stock broking company.

64


64%

36%

india bulls

religare

Religare with ICICI Direct: -

ICICI Direct has a higher account opening charge than Religare securities. The services

provided by ICICI Direct are also not as satisfactory as Religare that was one of the

65

reasons during I was able to convince some of the ICICI Direct clients to convince them to

transfer their money to Religare. They also have a slab system for the brokerage the same

as Religare. They also have low brokerage for the clients with a high volume and a high

brokerage for the clients trading in low volumes. The services of Religare are not as

satisfactory as India bulls but are better than ICICI Direct. The Relationship managers of

Religare are helpful in providing the correct information at the right time so that the

clients can get an enough returns on their money. The clients are provided online software,

which they can use at any time and at any place so that they can trade on their own.


55%

45%religare

icici direct

Learning in Religare:-

Documents required:

1. PAN card photocopy.

2. 3 photographs.

66

3. Savings a/c cheque

4. Address proof

- Electricity bill

- Ration card

- Driving license

- Passport

- Passbook

- Rent agreement

- Voter ID

- Landline telephone bill (for last 2 months)

Brokerage- 0.03 paisa (intraday)

0.30 paisa (delivery)

Exposure- 15 times (intraday)

4 times (delivery)

Products: -

1. Rally- it is a simple offline product. No balance is required in the account for

trading and trading is done through phone only. No online trading facility is given.

2. Rally pro- it is an online trading product. ODINDIET software is provided to the

client. A minimum balance of Rs. 1800 has to be kept by the client and if in the

67

first year, the client provides a brokerage of Rs. 1800 o the company, their Rs.

1800 gets wiped off.

3. Rally lite- it is also an online trading product. A browser based software is

provided to the client. A minimum balance of Rs. 5000 is to be maintained every

time in the account, otherwise trading is not allowed.

The amount is non-refundable.

Characteristics of Religare:

Promoted by Ranbaxy.

Separate research department.

95% result accuracy.

Free SMS facility.

Less brokerage.

Demat free of cost

Supportable relationship managers.

Less interest rate

Free advice

Hidden charges

-Ist year- No AMC

-IInd year- Rs. 250

-IIIrd year- Rs.250

and so on.

Details of ICICI and India bulls:

68

ICICI India bulls

a/c opening

Trading +demat 900 900

AMC 500 -

Brokerage

I 0.25 0.25

D 0.75 0.50

Exposure

I NIL 6 times

D 2 times 2 times

Stock market

As the banking sector is headed by RBI, Investment/Insurance sector by IRDA, the same

way Securities market is controlled by the SEBI (Securities and Exchange Board of India).

STOCK MARKET

NSE (Nifty) BSE (Sensex)

NSE contains top 50 companies. The share comes in a lot of 1. Generally traded in the

cash market and futures and options (Derivative market)

BSE

It contains top 30 companies. BSE fluctuates 3-4 times than NSE. The shares come in a lot

of 1 and are traded in the cash market and the futures and options.

69

Market is of 2 types:

1. Primary market- an initial public offering takes place in the primary market.

2. Secondary market- the general and regular trading of the shares takes place in the

secondary market.

Customer Broker NSE

BSE

Bank savings a/c- this a/c is meant for holding the money.

Demat a/c- this a/c is meant for holding the shares.

Demat

NSDL CSDL

A person can start the trading by getting himself registered through

www. religaresecurities.com

where the customer will get a username and a password, after that he can start his

trading.

Cash market

It is the market where the trading is done only in money. The individual cannot just

pay a small amount of cash and trade in the whole amount.

In trading language,

Long means to buy a share

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Short means to sell a share

Intraday

Intraday is that situation where the person buys and sells the scrip on the same day and

if he doesn’t sells his shares then NSE does that on his behalf.

Qty*amt=value

For e.g., 100*1760=176000

100*1780=178000

Short sell

A person can trade in two ways either he purchases a share and then sell it or he first

sells a share and then purchases it at a lower price to get a profit out of it.

Short sell means selling of shares at a price so that those shares can be purchased at o

lower price to get profit.

Qty*amt=value

For e.g., 1780*100=178000 (sold)

1760*100=176000 (purchased)

2000 (profit0

Penalty= 20% if not recovered.

Delivery

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If a person holds a share for more than one day and for a longer period then it is called

as delivery.

Futures

Futures is also a share in which the company has a lot size of 50, 100, etc shares.

The lot size is fixed

Purchased through NSE.

Span margin

Expiry date- to be sold on the last Thursday of the month.

M to M- mark to market- you do not have to pay the full amount, but you make

profit and loss on the full amount.

NSE does the settlement.

For e.g.,

First day, the profit rose from Rs. 250 to Rs. 255, which got credited to the account.

Second day, the amount rose to Rs. 260 so the profit of Rs.5 got credited to the account.

Third day, the amount was Rs. 230 so the net loss (30-5-5) was credited and on the fourth

day, the amount rose to Rs. 270 so a profit of Rs. 40 was credited to the account of the

client.

Loss is unlimited in futures.

Cutting position- when the client sells its shares holded, to reduce the exposure taken.

NSE, that’s why the securities company cannot charge any interest on it, issues futures.

Options

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It’s of 2 types:

1. Call option

2. Put option

Call option

It is bullish (optimistic) in nature. When nifty increases, call increases. It is related with 2

prices: -

1. Spot price- current price of the scrip

2. Strike price- future or anticipated price of the scrip

Profit =strike –spot price

It is to be settled on the last day of each month.

Lot size (50 fixed)

Expiry

M to M- mark to market

Time limit

- Near-current month

- Far- next month

- Further- Next to next month

Future value of a share

Date Market price Profit or loss

24 202 +2

25 198 -4

26 204 +6

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India bulls

It has a 7 days product. The client has to settle his shares in 7 days otherwise the NSE sells

them off.

Religare

It has a 15 days product.

Funding/ exposure

The customer invests 25%

75% is by the company.

Intraday has 18% interest.

Put option:-

When nifty decreases the put option increases. it is bearish in nature. It also has 2 prices

i.e. spot prices and strike prices. In it, loss is limited but profit is unlimited.

Spot price- anticipated price

Strike price- current price

Profit= Spot – Strike

At sale time:-

Bearer Bullish

Put + call +

Call - put -

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Strike –spot=+ spot – strike=+

After that we can sell on the call or put option in the market, otherwise the value of call or

put will be 0.

Commodities market

Multi commodity exchange (MCX)

It is India’s first commodity exchange.

It is world’s third largest commodity exchange.

Traded in: -

Metals

Bullions (gold, silver)

Grains

Energy

Oil seeds, etc

Rates: - it is a future based product

Spot rate- market price

This is a margin based trading.

Margin- max-8%

Min-4%

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For e.g.

Copper-

Market rate- Rs. 355

Lot- 1000 (1 ton)

Lot value- Rs. 355000

Margin- 5%

=17750 to be invested.

Movement of commodity depends on commodity analysis.

Demand Supply

For e.g.

For crude, demand comes from all over the world.

Supply comes from gulf countries (OPEC).

NSE and BSE mainly deals in

Cash

Futures

Commodities.

In NSE

The settlement is done in T+2 days, that to working days. NSCCL does the settlement.

In BSE

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The settlement is called rolling settlement (T+2)

When the shares are sold, they are kept in DP (depository participant) and the DIS is to be

submitted in T+2 days otherwise the shares are auctioned on the T+3 day, when

If the slip is not submitted.

If a person sells more shares than he is holding then settlement takes place in T+5

days.

Auction market

The exchange will purchase the shares at a rate depending on the market.

- Trade to trade shares have 20% fine when above formalities are not

fulfilled.

- In intraday, there is no fine.

- Lower circuit- limit that the shares will not fluctuate below that.

- Upper circuit- limit that the shares will not fluctuate above that.

- At listing time, no circuit is kept; the share can fluctuate as much as it can.

Otherwise, maximum of 20%, circuit is there which is fixed by the

exchange.

- Shares in futures have no circuit

Off market trade-

It is the trade where the exchange is not involved. Only securities company and client is

involved.

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Market trade- Traded by BSE and NSE.

Futures settlement is done on the last Thursday of each month

If the future is purchased and sold on the same day or purchased on one day and sold on

the next day, then also the settlement takes place on T+1 day.

If future is purchased for July in the month of June, then they are valid for 2 months

On last Thursday- the premium on call and put reduces gradually to 0

Auction market works from 12:30p.m. -1:30p.m.

Off-season market- 3:50p.m. -4:00p.m.

For dividend the shares of the company must be in the account of the customer T-2

days before.

The shares must be in the a/c of the client 2 days before the declaration of the

dividend.

Jobbing- trading done in intraday

Square off- paying the full amount or selling the shares off.

In BSE less volume is traded but in NSE large volume is traded.

Trade to trade generally takes place in BSE

MUTUAL FUND

High-risk high gain mutual funds are invested in equity

Low risk low gains are invested in banks and a small amount is invested in equity.

Balanced mutual funds are invested partially in banks, equity, FD, etc

Stop loss-

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Make a certain limit so that even if the market falls to a large extent, then also the loss of

the client is less or limited to the limit of stop loss.

Factors affecting the Market:

1. Inflation rate exposed every week.

2. Other markets to some extent, but mainly affected by the Dow- Jones.

Indian market never works on fundamentals and technicians but is affected by the brokers,

dealers and people who bet on it.

Dow-Jones future trade for 23 hours and that affects the Indian market to an extent. It

closes for 1 hour and is traded for the rest whole day.

Cut position

It is reducing or selling of some part of shares so that the extra amount taken by the

company or exposure is reduced.

This is one of the reason people get into losses

Lower circuit- when there is no buyer in the market.

Upper circuit- when there is no seller in the market

SWOT Analysis Of Religare

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Strengths

1. It is a pioneer in online trading with a turn over of Rs.400 crores and more than

800 peoples working in the organization.

2. Religare is A Ranbaxy promoter Group Company.

3. Religare provides multi-channel access to all its customers through a strong online

presence with www.religare.in, 580 share shops in 130 cities and a call-center

based Dial-n-Trade facility

4. Religare has dedicated research teams for fundamental and technical research,

which constantly track the pulse of the market and provide timely investment

advice free of cost to its clients, which has a strike rate of 70-80%.

Weakness

1. Localized presence due to insufficient investments for countrywide expansion.

2. Lack of awareness among customers because of non-aggressive promotional

strategies (print media, newspapers, etc).

3. Lesser emphasis on customer retention.

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4. Focuses more on HNIs than retail investors which results in meager market-share

as compared to close competitors.

5. Opportunities

1. With the booming capital market it can successfully launch new services and raise

its client’s base.

2. It can easily tap the retail investors with small saving through promotional

channels like print media, electronic media, etc.

3. As interest on fixed deposits with post office and banks are all time low, more and

more small investors are entering into stock market.

4. Abolition of long-term capital gain tax on shares and reduction in short term

capital gain is making stock market as hot destination for investment among small

investors.

5. Increasing usage of Internet through broadband connectivity may boost a whole

new breed of investors for trading in securities.

Threats.

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1. Aggressive promotional strategies by close competitors may hamper Religare’s

acceptance by new clients.

2. Lack of sufficient branch-offices for speedy delivery of services.

3. More and more players are venturing into this domain, which can further reduce

the earnings of Religare.

7 golden investment rule s!

As the Indian stock markets move into uncharted waters, and stock prices move under

a cloud of volatility, it is time for small investors to step back and take note of some

of the key rules for safe and defensive investing.

In these times, the rules spelt out by the legendary investor, Benjamin Graham, should

come in handy for 'defensive' investors, or those who are risk-averse in their investing

habits.

A defensive investor is one who generally places high emphasis on the safety of his

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capital through avoiding serious mistakes while making investment decisions.

Also, a defensive investor is one who aims at freedom from effort and the need for

making frequent decisions.

In these volatile times, thus, such an investor should keep some benchmarks for

himself while selecting his portfolio of stocks. Only this would be of help in his need

for making less frequent decisions.

These are some of the characteristics that a defensive investor should look at in a

company, or the potential investment target(s).

1. Adequate size of the enterprise: This is one of the most important factors while

selecting a company for investment. Investors should note that small companies or

those that are in the nascent stages of their development are more likely to have a

volatile future than bigger corporations.

While an aggressive investor would have interests in such small yet growing

companies, this should not be a defensive investor's cup of tea. He should be content

in having large and strong companies in his portfolio.

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2. Sufficiently strong and stable financial condition: A sufficiently strong financial

condition of a company should be another top priority for defensive investors.

They should make sure that their investment target (company) has a strong balance

sheet and profit and loss account, and a very strong cash flow statement. This is

because, more than book profits, it is the strong cash position that is of help for the

company in times of pressure and uncertainty.

Also, for a company to be a sound investment target, not only should it have a history

of decent earnings growth, but also stability in the same. A company with a volatile

earnings growth history is more likely to be a risky proposition.

3. Dividend growth: A consistent dividend payment record is another indicator of the

sound financial position of the company. While there might be instances when a

growing company is ploughing back earnings towards future growth rather than

paying large dividends, investors must see that there are no grave inconsistencies in

dividend payments.

4. Moderate P/E ratio: A moderate price-to-earnings ratio is a very useful indicator

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for a defensive investor. This is because a relatively lower P/E would save

investors from paying a very high price that does not justify the value of an

investment.

Also, a history of moderate or less-volatile P/E's also helps the investors' cause. This

is because a company that has had volatile P/E's in the past is a case of investors

building up 'irrational expectations' of its growth.

5. Management quality: Apart from these performance parameters, investors should

also take note of the 'management quality', its vision and the past track record.

6. Do your homework: All said and done, while the rules mentioned above are

benchmarks that every defensive investor needs to apply before making any

investment decision, the fact that he should do his homework carefully should not lose

relevance.

This means that he should research well about the company's history, its business

model and factors that are likely to affect its future performance.

7. Long-term view: Also, the investor should have a long-term (more than 3 years)

investment horizon for this maximizes the chance of garnering adequate return on

investments.

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CONVERSION OF LEADS V/S TOTAL NO. OF CALLS (on

weekly basis)

Interpretation:

INTERPRETATION

0

100

200

300

400

500

600

WEEKS

NO

OF C

ALLS

NO.OF CALLS

LEADS

WEEK NO.OF CALLS LEADS

I 367 2

II 456 3

III 562 2

IV 342 3

V 456 2

VI 543 2

VII 459 2

VIII 300 2

IX 330 3

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Chapter 6

Limitations

1. The cost of opening the account is too high which the investor thinks before

paying.

2. The Relationship managers should help the clients in the best possible way. They

do not treat them with enough concern.

3. The investors’ money is not maintained well.

4. The regular every day cost is too high, when the clients come every day it

increases the cost, so they should be induced for online trading.

5. The concern should not be only on increasing the customer base but to increase the

relation with them.

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6. Every customer should be given equal importance; an investor with a high net

worth and with a low net worth should be treated equally.

7. Advice not given with care.

Chapter 7

Conclusion

Hence it can be concluded that:-

Religare, one of the leading stock broking companies is able to perform well in

the market. It is trying to extend its customer base through attracting the

customers. It is also trying to give the best to the customers so that they can have a

trust in the company. It has many new technologies such as the online trading

facility, which helps the clients to access the market themselves. Its various

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products, the r-ally, r-ally lite, r-ally pro also has some good features which are

attracting the customers effectively. Its research team is also analysisng all the day

to day activities, so that proper and right news can be provided to the customers.

The efficient Relationship managers try to provide efficient services to its clients

so that they can build a trust and a mutual relation with them, which will help

them to get a good customer reference. But it also has to work on many grounds.

The research news provided each time is not correct for which they will have to

have a keen eye on every step of the market and provide all the news as soon as

possible. With regard to the online trading it also has to work for providing

efficient and speedy software which is able to tell them about every change

happening as soon as possible. The stock market volatility cannot be predicted at

any point of time so it is essential for the customers to know that they have to

invest at a good time and come out by making good returns. With regards to the

competitors of Religare, it has to work really hard to get into the minds of the

clients. Today also the clients have their trust in India bulls. They have to win this

trust by providing the clients efficient and flawless services. All the formalities

should be reduced for the client’s convenience. The Relationship managers should

trade as they are trading their own money then only they will be able to provide

returns to the clients. The client’s queries should be resolved as fast as possible.

The individuals should be educated about the market so that they do not hesitate

in entering in the market. They should be told about the correct time to enter and

get out of the market. The market do not work on the fundamentals especially, the

Indian market, so it is really important that the uneducated clients should be taken

care of. The clients should be told about the importance of demat account as it can

be used for filling the returns also. These benefits should be told to them and

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should be encouraged to open demat accounts. These could be some of the areas

on which if the company works can be able to improve its services and get a better

coverage in the market.

Recommendations

1. Try to reduce cost, so that benefits can be passed on to customers. Senior managers

at Religare keep on telling that it is difficult to reduce cost, because of services we

provide. But the fact is, India being a price sensitive market; people at times go for

monetary benefits rather than for long-term non- monetary benefits.

2. If charges can’t be reduced because of costs involved, make the services

customized, so that services are provided to only those customers other customers

enjoy costs benefits without getting services.

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3. Concept of margin funding should be introduced, as more and more people are

asking for it.

4. Religare should contact with their clients regularly for knowing the problems faced

by them. This will help Religare in providing best services to customers. This will

result in additional customer base by getting further references from satisfied

clients.

5. To launch slab wise brokerage structure as Religare has fixed brokerage structure,

which cannot be negotiated. But other players in the market offer launch slab wise

brokerage structure, which motivate customers to increase to their volume

Chapter 8

Bibliography

1 The Economic Times, Business Standard, Business line

2 Securities Market (Basic) Module: --NCFM

3 Training Kit Provided by the Religare.

4 Indian financial system by M.Y KHAN

5 NSDL Depository operations module: --NCFM

URLs:

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1 www.religare.in

2 www.economictimes.com

3 www.investopedia.com

4 www. nseindia.com

5 www.bseindia.com

6 www.moneycontrol.com

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Competitive Analysis of Stock Brokers Religare

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