DILCAP +NGR

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UNIVERSITY OF MUMBAI

PROJECT REPORT ON

Relationship Marketing in Capital Market

SUBMITTED BY:-

RAJ KUMAR GUPTA

PROJECT GUIDE:-

MR. ANURAG SRIVASTAVA

MASTER OF MANAGEMENT STUDIES

III SEMESTER

2010-11

DILKAP RESEARCH CENTRE AND INSTITUTE OF MANAGEMENT

STUDIES,

AT-MAMDAPUR, NERAL


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ACKNOWLEDGEMENT

I would like to express my Acknowledgement to those people, without whose

contribution, Support and guidance this Report would not have seen the lightof the day. Notable among them are Mr. Anurag kumar srivastava (BranchManager ) who was my Project Guide and who helped me in a lot. I am alsothankful to all other employees of Religare who guide me during my Project.I am also thankful and would like to express my Gratitude to the entireInstitute for giving me a Platform to have this wonderful opportunity and beingable to get a glimpse of the Corporate WorldI am also thankful to Mr. Prassana mishra for there constant Support andvaluable suggestion.


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PREFACE

As a part of M.M.S. program, student has to pursue a project dulyapproved by the faculty of the concerned area. I had the privilege ofunder taking the project on relationship marketing in capital market inreligare securities limited. Main aim of the project is to study how tobuild the long term relationship with the customer in the capital market.

My project work is divided in to following which are as under:

1. Objective

2. Executive summary

3. Product detail

4. Relationship marketing

5. Methodology

6. Data analysis & interpretation

7. Finding & recommendations

8. Conclusion

9. Bibliography


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DECLARATION

I RAJ KUMAR GUPTA student of,DILKAP RESEARCH CENTER ANDINSTITUTE OF MANAGEMENT STUDIES,RAIGAD hereby declare thatrelationship marketing in capital market submitted by me in partialfulfillment of my summer traning program, is my original work and thatit has not previously formed the basis for reward of any other degree,diploma fellowship or any other titles.

Place: candidate signature:

Date:


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CONTENTS

TOPIC PAGE NO

1. EXECUTIVE SUMMARY 6

2. INTRODUCTIONINDUSTRY PROFILE

COMPANY PROFILE

ORGANISATION STRUCTURE

7

3. OBJECTIVES 12

4. METHODOLOGY 13

5. PRODUCT DETAILSSTOCK TRADING

DEPOSITARY SERVICE

MARGINAL FINANCING

MUTUAL FUND

COMMODITY TRADING

16

6. RELATIONSHIP MARKETING 26

7. SWOT ANALYSIS 32

8. DATA ANALYSIS & INTERPRETATION 37

9. FINDINGS 65

10.LIMITATION OF STUDY 66

11. CONCLUSION & RECOMMENDATION 67

12. ANNEXURE 69

13.BIBLIOGRAPHY 72


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EXECUTIVE SUMMARY

The Present business scenario is totally consumer oriented. Every company faces stiffcompetition from its competitors, each provides the best product at competitive rates. As aresult customers have lot of choices to get the best with the least cost. To face thiscompetition, it is very important to know customers behavior, there needs, preference andalso the motivation factors. My Project was on Relationship Marketing of FinancialProducts Dealing in the financial product with in varanasi. To know the Motivational &demotivational factors of the client so as to cater the needs in most appropriate manner.Itwill help business to expand its network & also its services.I had done my project underthe guidance of My Guide Mr. Anurag srivastavawhose guidance helps me in completingmy Project Work Successfully.Religare Securities Limited Provide its Expert service in Capital market Operations to

institutional Investors. Company is a Member of National Stock Exchange as well asBombay Stock Exchange. Religare is slowly but steadily gaining market share andgoodwill in the Market. Its strategies for marketing its services as well as developing agood Relationship Marketing with its client has given an edge over the other serviceproviders. Religare is on expansion path and is looking forward to be in the top. Religare isa very flexible organization and its gives equal opportunity to its young and energetic staffto work so as to bring this organization among the top.This project also throws lights on the working frame of broking service. This industry is onthe spree to adopt the latest technology and thus any player has to be dynamic in thisindustry. The comparative analysis done in this project show how Religare has builtcompetitive edge on some ground. The Project help you understand the strategies of this

industry right from De-Mat toTrading, Margin to analysis and risk to return. I hope thisproject prove to be beneficial for the Company and also give the reader a through ideaabout the industry. I learnt a lot through out the process of undertaking this projectreport.To fulfill my task I had to visit the client personally who are dealing in share tradingwith this company or some other broking house.For this project I was assign the target of10 accounts, for which I first generated the database and made appointment with themand convert them in as traders of Religare Securities Limited,for this I have to convincethem and explain the concept and collect the Trading Form and a cheque of Rs. 500 only.

After going through the exercise I found that RSL is one of the upcoming companies in theMarketing of financial Product, as the credibility of other companies are going down in themarket and it is the right time for the RSL to built its reputation in the market The Main

reason for RSL low market share is because of local brokers in the market which acharging very less Margin as initial investment for Trading in Stock Market. But No doubt itis having lots of scope to grow in the financial Market, and I wish it is having a shiningfuture in the coming years.


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ABOUT RELIGARE SECURITIES:

INTRODUCTION

Religare is driven by ethical and dynamic process for wealth creation. Based on this, thecompany started its Endeavour in the financial market.

Religare Enterprises Limited (A Ranbaxy Promoter Group Company)

Through Religare Securities Limited, Religare Finvest Limited, Religare Comdex Limitedand Religare Insurance Advisory Services Limited provides integrated Financial solutionsto its corporate, retail and wealth management clients.Religare is proud of being a truly professional financial service provider managed by a

highly skilled team, who have proven track record in their respective domains.Religare operations are managed by more than 1500 highly skilled professionals whosubscribe to Religare philosophy and are spread across its country wide branches. Today,we have a growing network of 150 branches and more than 300 business partners spreadacross 180 cities in India and a fully operational International office at London However,our target is to have 400 branches and 1000 businesspartners in 300 cities of India and more than 8 International offices by the end of2007.Unlike a traditional broking firm, Religare group works on the philosophy of partnering forwealth creation. We not only execute trades for our clients but also provide them criticaland timely investment advice. The growing list of financial institutions with which Religareis empanelled as an approved broker is a reflection of the high level service standardmaintained by the company.Religare has a very credible team research & Analysis division, which not only caters tothe need of our institutional client but also gives there valuable input to investment dealers.Religare is among the capital market fraternity and the most vibrant place in terms ofinformation and every day it is consolidating its efforts to provide more customizedservices to its clients.Religare in recent past has been constantly innovating in terms of the product & serviceswhich it offers, and in this respect it has started a premium NRI, HNIs & corporateservicing group. This group specifically caters to the growing investment needs of thesepremium clients categories by taking all there portfolio investment decisions depending

upon there risk / returns parameter..RELIGARE SECURITIES LIMITED

Religare Group of Companies:


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Religare Enterprises Limited group comprises of Religare Securities Limited, ReligareComdex Limited, Religare Finvest Limited and Religare Insurance Advisory Limited whichdeal inequity, commodity and financial services business.RSL is one of the leading broking houses of India and are dealing into Equity Broking,Depository Services, Portfolio Management Services, Institutional Equity Brokerage &Research, Investment Banking and Corporate Finance

Extension of services has been a constant feature in Religare to regard the needs of ourclients. Consequently, company is soon going to launch Internet Trading and MerchantBanking. This would take care of different investment needs of different classes ofinvestors To facilitate free and fare trading process Religare is a member of major financialinstitutions like, National Stock Exchange of India, Bombay Stock Exchange of India,Depository Participant with National Securities Depository Limited and Central DepositoryServices (I)Limited, and a SEBI approved Portfolio ManagerRSL serves a platform to all segments of investors to avail the opportunities offered byinvestingin Indian equities either on their own or through managed funds in Portfolio

Management.

Religare Comdex Limited:

Religare is a member of NCDEX and MCX and provides platform for trading incommodities, which is an online facility also.RCL provides platform to both agro and non-agro commodity traders to derive the actual price of the commodity and also to trade andhedge actively in the growing commodity trading market in India.With this realization, Religare Comdex is coming up with its branches at 42 mandilocations. It is a flagship effort from our team which would be helpful in facilitating tradeand speculating price of commodities in future.

Religare Finvest:

Religare Finvest Limited (RFL), a Non Banking Finance Company (NBFC) is aggressivelymaking a name in the financial services arena in India. In a fast paced, constantlychanging dynamic business environment, RFL has delivered the most competitiveproducts and services.RFL is primarily engaged in the business of providing financeagainst securities in the secondarymarket. It also provides finance for application in Initial Public Offers to non-retail clients inthe primary market RFL is also planning to initiate personal loan portfolio as fund basedactivity and mutual fund distribution as fee based activities .Along with this, the company

also undertakes non-fund based advisory operations in the field of Corporate Financingin the nature of Credit Syndication which includes bills discounting, inter corporatedeposit, working capital loan syndication, placement of private equity and other structuredproducts

Religare Insurance Advisory Ltd:

Religare has been taking care of financial services for long but there was a missing link.


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Financial planning is incomplete without protective measure i.e. structured products totake care of event of things that may go wrong Consequently, Religare is soon coming upwith Religare Insurance Advisory Services Limited .As composite insurance broker, wewould deal in both insurance and reinsurance, providing our clients risk transfer solutionson life and non-life sides. This service will take benefit of Religares vast business empirespread throughout the country providing our valued clients insurance services acrossIndia.

We aim to have a wide reach with our services literally! Thats why we are catering theinsurance requirements of both retail and corporate segments with products of all theinsurance companies on life and non-life side Still, there is more in store. We also caterindividuals with a complete suite of insurance solutions, both life and general to mitigaterisks to life and assets through our existing network of over 150 branches expected toreach 250 by the end of this year!For corporate clients, we will be offering value based customized solutions to cover allrisks which their business is exposed to. Our clients will be supported by an operationsteam equipped with the best of technology support.Religare Insurance Advisory aims to provide neutral, transparent and professional risk

transfer advice to become the first choice of India.

COMPANY PROFILE

Religare Securities Ltd. is a wholly owned subsidiary of Fortis Financial Services Ltd. Acompany promoted by the late Dr. Parvinder Singh, Ex- CMD of Ranbaxy LaboratoriesLtd. The Primary focus of RSL is to cater services in capital Market operations toInstitutional Investors. The company is a member of the National Stock Exchange (NSE).

BUSINESS & OPERATION:

BUSINESS:

Over a period of time RSL has recorded a healthy growing rate both in business volumeand profitability as it only the major players in this line of business. The business thrusthas mainly in the development of business from Financial Institutions, Mutual Funds andCorporate.

OPERATIONS

The operations of the company are broadly organized among the following functions.

Research & Analysis

This group is focused on doing stock picks and periodical scrip/ Segment specificresearch. They provide the best of analysis in the industry and are valued by both ourinstitutional and Retail Clients.

Marketing


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This group is focused on tracking potential business opportunity and converting them intobusiness relationships. Evaluation the need of the clients and tailoring products to themeet there specific requirements help the company to build lasting relationship.

Dealing

Enabling the clients to procure the best rates on there transactions is the core function ofthis group.

Back office

This group ensures timely delivery of securities traded, operation matters with stockexchange, statutory compliance, handling tasks like pay-in, pay-out, etc. This section isfully automated to enable the staff to focus on the technicalities of securities trading and ismanned by professionals having long experience in the field.

INFRASTRUCTURE

Offices:

The company has offices located at prime location in Mumbai, New Delhi, Kolkatta and

Chennai. The offices are centrally located to cater to the requirements of institutional andcorporate clients and retail clients, and for ease of operation due to proximity to stockexchange and banks. Today we have more than 170 branches all over India.

Communications:

The company has its disposal, an efficient network of advance communication system andintend to install CRM facilities, besides this it is implementing interactive client informationdissemination system which enable clients to view there latest client information on web. Ithas an installed multiple WAN to interconnect the branches to communicate on real timebasis.The company is equipped with most advanced system to facilitate smooth

functioning of operations. It has installed its major application on IBM machine and useslatest state of art financial software.

MANAGEMENT:

Mr. Sunil Godhwani is Chief Executive Officer and Managing Director of ReligareSecurities Limited. He is also the CEO and MD of the parent company Fortis FinancialService Limited and is managing the entire operations of both the companies.


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CEO is supported by various HODs who are creditable professional consisting ofChartered Accountants, MBAs with varied experience in financial services and stockbroking functions. The Board of Directors consists of Mr. Harpal Singh as Chairman andMr. V.K. Kaul, Mr. Malvinder Mohan Singh, Mr. Shivinder Mohan Singh as Directors.

DEPOSITORY PARTICIPANT SERVICES:

Religare Securities Limited has also ventured into depositary services to its clients and isamong leading depository services provider having more than 3000 Crore worth ofsecurities under its custody.

COMPETITIVE EDGE IN MARKET

Participant on the countrys premium exchange:

Religare is a member of the countrys premium stock exchange- The National StockExchange of India (NSE) as well as Bombay Stock Exchange (BSE)

Clearing membership on Capital & Derivative Segments:It has clearing membership on both the Capital Market and Derivative segments of theexchange. We are also authorized to trade the retail debt market.

Depositary Participant with NSDL & CDSL:We are depositary participants with the country premium depositary service- NationalSecurities Depository limited (NSDL) as well as with the only depository with a countrywide reach Central Depositary Service Limited (CDSL)

Leading Private sector bank as partner:Our banking partner is HDFC Bank, ICICI Bank & UTI Bank The foremost private sectorbank in the country, which has the most technologically advanced infrastructure in thecountry, with internet banking allowing access to information 24x7.

Prime office location:We have prime office location in the nations political capital and the business capital Delhi & Mumbai.

Research Capabilities:We have a dedicated team of analysts in our Bombay office They provide fundamentalanalysis of stock and markets, which are fundamentally strong and are helpful for retail

investors.Technical Analysis:

A daily technical newsletter is published by our in house technical analyst, who is arecognized leading practitioner in capital market. He tracks the progress of the calls on thereal- time basis, and advises of any change in the profit points of stop loss levels.Thus with this in house services that is provided by Religare Securities Ltd. To its Clientshas given a competitive edge & more over it has given trust and confidence to its retailinvestors to as to build a long term relationship with its clients.


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CORPORATE STRUCTURE

Our organization is led by individual who are professional and leaders in every sense ofthe world. Experts in their respective domain, esteem members of our Board of Directorsare:

Name DesignationMr. Harpal Singh ChairmanMr. Vinay Kumar Kaul DirectorMr. Malvinder Mohan Singh DirectorMr. Shivinder Mohan Singh DirectorMr. Sunil Godhwani M.D

OBJECTIVES

Primary Objective:yTo Study how to build a relationship marketing in Capital Market.

Secondary Objective:

yTo study various financial products like Equity, Mutual Funds, Commodity& PortfolioManagement Services.

yTo Study the various services provided by Broker house to their clients.

yTo know investors experience in capital market

yTo study what other services investors expect from their broker house.


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RESEARCH METHODOLOGY

Research:

The study of research method provides you with the knowledge and skills you needto solve the problem and meet the challenges of the fast- based decision. Marketingenvironment we define Business Research as a systematic inquiry whose objective is toprovide information to solve managerial problem.It seeks to find explanation to unexplored phenomena to clarify the doubtful factsand to correct the misconceived facts.

Types of Research:

Descriptive Research:

Descriptive study is a fact- finding investigation with adequate interpretation. It isthe simplest type of research. It is more specific than an explanatory study, as it has focus

on particular aspect of the problem studied. It is designed to get her descriptiveinformation and provide information for formulating more sophisticated studies. Data arecollected by using one or more appropriate method, observation, interviewing and mailquestionnaire.

Type of Data Used:-

There are basically two types of Data

yPrimary Data

ySecondary Data

Primary Data:-

Primary Data is first hand information that the researcher collects. It helps in collectinguseful and most accurate information that is needed for the researcher to do his research.

Sources of Primary Data:-


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yQuestionnaire

yInterview Schedule

Secondary Data:-

Secondary data is what the researcher collects from different sources. It also helpresearcherto get elaborate information to do his research.

Sources of Secondary Data:-

yInternet

yJournals

Target Group/ Population:-

As this research is based on Relationship Marketing my Target group is my Clients who

are using the Services of Religare Securities in Dealing with Capital Market.

Area of Study:-Varanasi city

Tools for Data Collection:-

The Various method of Data gathering involves the use of appropriate recording forms.

These are called tools or instrument of data collection.Sample Size :-

50 (Fifty)

Questionnaire:-

yClose Ended Question:-Are structured ones with two or more alternative responses from which respondent

can chose. They contain standardized answers and they are simple to administer andeasy to compile and analyzes.

yDichotomous or two- choice questions:-A dichotomous question can be answered in one of the two responses suchas Yes or No. It is necessary to realized that in many two choices question theremay be potential alternative beyond the stated two.


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yMultiple Choice questions:-

These questions contain more than two alternatives.Following points should be remembered before making this question

The list of alternative choice should be exhaustive.It Should not overlappingThere should be fair balance in choiceAll alternative should be reasonable.

SAMPLING

The Basic idea of sampling is that by selecting some of the element in a population inorder to get first hand information of study.There are two type of sampling probability Sampling & Non probability sampling and in thisresearch, Researcher has taken probability sampling.

Probability Sampling:

Probability sampling is most commonly associated with survey based research where youneed to make inferences from your sample about a population to answer your researchquestions or to meet your objectives. The process of probability sampling can be dividedinto four stages:1. Identify a suitable frame based on your research question or objectives2. Decide on a suitable sample size

3. select the most appropriate sampling technique and select the sample4. Check that the sample is representative of the populationThe objective of probability sampling depends on the research question & on the objective.Subsequently I need to have face to face contact with respondents.

Simple random sampling:

Simple random sampling involve in selecting sample at random from the sampling frameusing either random no. table. In my research I had use random selection of respondentwho used to come for the trading purpose in Religare securities office it is most accurateand easily accessible form of sampling method

Convenience SamplingConvenience or haphazard sampling involve selection haphazardly those cases that areeasiest to obtain for your sample, Such as the person interviewed at random in a shoppingcenter for the interview programmed. The sample selection process is continued until yourrequired sample size has been reached. Although this techniques of sampling is widelyused it is prone to bias and influence that are beyond your control. I has selectedconvenience sampling as some of the respondent are my clients only.


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Technique used for analysis & interpretation:-yBar Diagram & Pie Chart

yPercentage Analysis

PRODUCT DETAILS:-Stock Trading (RACE & RALLY)Depositary ServicesMarginal FinancingMutual Fund DistributionPortfolio Management SchemeCommodity Trading

R-ACE (Basic)

No software installation required, easily accessible on browserNSE cash segment, NSE F&O and BSE on single platformTrade online and over phoneAccess your ledger balances and account information over internet andphone

Integrated DP, back-office and trading account

Earn interest on cash margin deposited with usOnline transfer of funds through multiple banksLifetime free DP account (No annual maintenance charges)*R-ACE Lite (Advanced)

Account activation charges Rs. 499/-Minimum margin of Rs. 5000/- requiredNo software installation required, easily accessible on browserNSE cash segment, NSE F&O and BSE on single platformReal-time streaming quotesAlertsHot key functionsTrade online and over phoneAccess your ledger balances and account information over internet andphone


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Integrated DP, back-office and trading accountOnline transfer of funds through multiple banksLifetime free DP account (No annual maintenance charges)*

R-ACE Pro (Professional)

Account activation charges Rs. 999/-Minimum margin of Rs.10 000/- requiredTraders terminal on your desktopNSE cash segment, NSE F&O and BSE on single platform

Real-time streaming quotesTechnical charting (intra-day and EOD)Multiple watch listAdvanced hot-key functions for faster tradingDerivative chainsFutures & options calculator Access your ledger balances and account information over internetandphone.

Integrated DP, back-office and trading accountOnline transfer of funds through multiple banksLifetime free DP account (No annual maintenance charges)*Earn interest on cash margin deposited with usTrade online and over phoneTRADING

Introduction:

The trading on stock exchanges in India used to take place through open outcry withoutuse of information technology for immediate matching or recording of trades. This wastime consuming and inefficient. These imposed limits on trading volumes and efficiency inorder to provide efficiency, liquidity and transparency. NSE introduced a nation-wide on-line fully-automated screen based trading system (SBTS) where a member can punch into the computer quantities of securities and the price at which he likes to transact and thetransaction is executed as soon as it finds a matching sale or buy order from a counterparty. SBTS electronically matches orders on a strict price/ priority and hence cuts down


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on time, cost and risk of error, as well as on fraud resulting in improved operationalefficiency. It allows faster incorporation of price sensitiveinformation in to prevailing prices, thus increasing the informational efficiency of markets, itenables market participants, irrespective of their geographical locations, to trade with oneanother simultaneously, improving the depth and liquidity of the market. It provides full

Anonymity by accepting orders, big or small, from members without revealing their identity,thus providing equal access to everybody

It also provides a perfect audit trail, which helps to resolve disputes by logging in the tradeexecution process in entirety.This sucked liquidity from other exchanges and in the very first year of its operation, NSEbecomes the leading stock exchange in the country, impacting the fortunes of otherexchanges and forcing them to adopt SBTS also. Today India can boast that almost 100%trading take place through electronic order matching.Technology was used to carry the trading platform from the trading hall of stockexchanges to the premises of brokers. NSE carried the trading platform further to the PCsat the residence of investors through the Internet and to handheld devices through W A Pfor convenience of mobile investors. This made a huge difference in terms of equal accessto investors in a geographically vast country like India.

The trading network is depicted in Figure 1.1 NSE has main computer which is connectsthrough Very small Aperture Terminal (VSAT) installed at its office. The main computerruns on a fault tolerant STRATUS mainframe computer at the Exchange. Brokers haveterminals (identified as the PCs in the Figure1) installed at their premises which areconnected through VSATs/leasedlines/modems. An investor informs a broker to place anorder on his behalf. The broker enters the order thorough his PC, which runs underWindows NT and sends signal to the satellite viaVSAT/leased line/modem. The signal isdirected to mainframe.

DEPOSITORY SERVICES-AN OVERVIEW:

The Act defines Depository as, An organization where the securities of a shareholder areheld in the form of electronic accounts in the same way as a bank holds money. TheDepository holds electronic custody of securities and also arranges for transfer ofownership of securities on the settlement dates.Depository System is concerned with conversion of securities from physical to electronicfrom, settlement of trades in securities segment, transfer of ownership of shares andelectronic custody of securities.

National Securities Depository Ltd. (NSDL) is the country's first Depository, which provideselectronic depository facilities, traded in the equity and debt markets. Trading indematerialized securities on the National Stock Exchange (NSE) commenced on 26thDecember 1996. The Bombay Stock Exchange (BSE) also extended the facility ofdematerialized securities from 29thDecember 1997.Offering depository service to theshareholders is a positive sign a company can send about its concern for the welfare of itsshareholders. Fortis Securities Ltd. has ventured into depository services to cater to its


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clients and is among leading depository services having more than 4000 Crore worth ofsecurity under its custody.

BENEFITS OF DEPOSITORY SYSTEM:

In the depository system, the ownership and transfer of securities takes place by means ofelectronic book entries. At the outset, this system rids the capital market of the dangersrelated to handling of paper. NSDL provides numerous direct and indirect benefits, like:

Elimination of bad deliveries- In the depository environment, once holdings of aninvestor are dematerialized, the question of bad delivery does not arise i.e. they cannot beheld under objection" In the physical environment, buyer was required to take the risk oftransfer and face uncertainty of the quality of assets purchased, In a depositoryenvironment good money certainly begets good quality of assets..

Elimination of al risks associates with physical certificates- Dealing in physical securitieshave associates security risks of theft of stocks, mutilation of certificates, loss ofcertificates during movements thorough and from the registrars, thus exposing the investorto the cost of obtaining duplicate certificates and advertisements, etc This problem doesnot arise in the depository environment. No stamp duty for transfer of any kind of securitiesin the depository. This waiver extends to equity shares, debt instruments and units ofmutual funds

Immediate transfer and registration of securities- In the depository environment, once thesecurities are credited to the investors account on pay out, he become the legal owner ofthe securities.

There is no further need to send it to the company's registrar for registration. Havingpurchased securities in the physical environment, the investor has to send it to thecompanys registrar so that the change of ownership can be registered This processusually takes around three to four months and is rarely completed within the statutoryframework of two months thus exposing the investor to opportunity cost of delay in transferand to risk of loss in transit.To overcome this, the normally accepted practice is to hold the securities in street namesi.e. not register the change of ownership. However, if the investors miss a book closure thesecurities are not good for delivery and the investor would also stand to loose hiscorporate entitlements.Faster settlement cycle - The exclusive demat segments follow rolling settlement cycle of

T+2i.e. the settlement of trades will be on the 2nd working day from the trade day. This willenable faster turnover of stock and more liquidity with the investor.

Faster disbursement of non-cash corporate benefits like rights, bonus, etc- NSDLprovides for direct credit of non cash corporate entitlements to an investors account, thereby ensuring faster disbursement and avoiding risk of loss of certificates in transit.

Reduction in brokerage by many brokers for trading in dematerialized securities -


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Brokers provide this benefit to investor as dealing in dematerialized securities reducestheir back office cost of handling paper and also eliminates the risk of being theintroducing broker..

Reduction in handling of huge volumes of paper-Periodic status reports to investor ontheir holdings and transactions, leading to better controls.

Elimination of problem related to change of address of investor, transmission etc.-In caseof change of address or transmission of demat shares, investors are saved fromundergoing the entire change procedure with each company or registrar. Investors have toonly inform their DP with all relevant documents and the required changes are effected inthe database of all the companies, where the investor is a registered holder of securities.

Elimination of problems related to selling securities on behalf of a minor-A naturalguardian is not required to take court approval for selling demat securities on behalf of aminorEase in portfolio monitoring- since statement of account gives a consolidated position of

investments in all instruments so as to make portfolio monitoring easy.

HOW DOES DE- MAT ACCOUNT WORK

Advantages:

Transacting the depository way has several advantages over the traditional system oftransaction using share certificates. Trading in de-mat segment completely eliminates therisk of bad deliveries, which in turn eliminates all cost and wastage bad delivery has withfollow up for rectification.The reduction in risk associated with bed delivery has leas toreduction in brokerage to the extent of 0.5% by quite a few brokerage firms.In case of transfer of electronic shares, you save 0.5% in stamp duty.You also avoid the cost of courier/notarization/the need for further follow - up with yourbroker for shares returned for company objection.In case the certificates are lost in transit or when the share certificates become mutilatedor misplaced, to obtain duplicate certificates, you may have to spend at least Rs, 500/- forindemnity bond, newspaper advertisement etc,. Which can be completely eliminated in thedemat form,You can also receive your bonuses and right in to your depository account as a directcredit, thus eliminating risk of loss in transit.

You can also expect a lower interest charge for loans taken against demat shares as

compared to the interest for loan against shares, This could results in a saving of about0.25% to 1.5% Some banks have already announced this,RBI has increased the limit of loans against dematerialized securities as collateral to Rs, 2mn per borrower Rs, and 1 mn per borrower in case of loans against physicalsecurities.RBI has also reduced the minimum margin to 25% for lac against dematerializedsecurities asagainst 50% for loans against physical securities.


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MARGINAL FINANCING

The Basics:

Buying on margin is borrowing money from a broker to purchase stock. Margin tradingallows you to buy more stock than you will be having normally.

To trade on margin, you need a margin account. This is different from a regular cashaccount in which you trade just with the money in the account. An initial investment inrequired for a margin account. This deposit is known as the minimum margin. Once theaccount is opened and operational, you can borrow money to purchase a stock.You can keep your loan as loan you want, provided you fulfill a few criteria. First, whenyou sell the stock in a margin account the proceeds go to your broker against therepayment of the loan, until it is fully paid, second, there is also a restriction called themaintenance margin, which is the minimum account balance you must maintain. If you dofall below this level, you will be forced to deposit more funds or sell stock to pay down yourloan; this is known as a margin call".Borrowing money isn't without its costs, On top of the fact that the margin - able securities

in the account are collateral and youll also have to pay interest on your loan.

ADVANTAGES OF MARGIN

Why use margin? It's all about leverage. Just as companies borrow money to invest inprojects, investors can borrow money and leverage the cost they invest. Every point astock goes up is amplified with leverage.

THE RISKS OF USING MARGIN

It should be clear by now that margin accounts can be very risky and are not suitable for

everyone, Leverage is a double-edged sword: losses are amplified to the same degree asgains are. In fact one of the definitions of risk is the degree that an asset swings in price.

As leverage is amplifying these swings, by definition, it increases the risk to your portfolio

MUTUAL FUNDS DISTRIBUTION

Introduction:

As you probably know, mutual funds have become extremely popular over the last 20years. What was once just another obscure financial instrument is now a part of our daily

lives. In fact too many people investing mean buying mutual funds. After all, its commonknowledge that investing in mutual funds is (or at least should be) better than simply lettingyour cash waste away in a saving account.

The Definition:


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A mutual fund is nothing more than a collection of stocks and/or bonds. You can makemoney from a mutual fund in three ways:1) Income from dividends on stocks and interest on bonds. A fund pays out nearly allincome it receives over the year to fund owners in the form of a distribution.2) If the fund sells securities that have increased in price the fund has a capital Gain.Most funds also pass on these gains to investors in a distribution.3) If fund holding increase in price but are not sold by the fund manager, the fund's shares

increase in price. You can then sell your mutual fund shares for a profit.

Advantages of Mutual Funds:

. Professional Management - A mutual fund is a relatively inexpensive way for a smallinvestor to get a full- time manager to make and monitor investments.. Diversification- By owning shares in a mutual fund instead of owning individual stokesor bonds, your risk is spread out.. Economies of Scale- Because a mutual fund buys and sells large amounts of securitiesata time, its transaction costs are lower than you as an individual would pay.

. Liquidity - Just like an individual stock, a mutual fund allows you to request that yourshares be converted in to cash at any time.. Simplicity - Buying a mutual fund is easy; Most Companies have their own line ofmutual funds, and the minimum investment is small.

Disadvantages of Mutual Funds:

. Professional Management - Management is by on means infallible, and even if the fundloses money, the manager still takes his/her cut.. Costs- The mutual fund industry is masterful at burying costs under layers of jargon.. Dilution - It's possible to have too much diversification. Because funds have

smallholdings in so many different companies, high returns from a few investments offerdon't make much difference on the overall return.. Taxes - When making decisions about your money, fund managers don't consider yourpersonal tax situation.

PORTFOLIO MANAGEMENT:

Portfolio Management Optimizes cash flows across a portfolio of assets, and provides riskmanagement expertise, Risks are assessed, mitigated and managed daily throughrigorous and strictly enforced processes that operate independently from the transactions

they monitor,1) Portfolio Management is a vital contributor to a successful deregulated market.2) Reduces price and volume fluctuations and increases buyer and seller certainly.3) Delivers lower costs by managing risk on behalf of producers and sellers, and bymanaging supply and demand imbalances.4) Fosters innovative thinking as well as new product and service offerings stabilize cashflows.5) Portfolio Management provides benefits to wholesale customers


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Seeks to optimize return on invested capital6) Fortis brings out Portfolio Management Service after obtaining the approval of theSecurities and Exchange Board of India (SEBI).7) Advantages of Portfolio Management are Expertise, Professionalism and integrity,tailor - made portfolio to match your risk profile, Periodic interaction and reportingthat enables you to track your portfolio without any delay or difficulties.

PRIVATE CLIENT SERVICING:

High net worth investors need personalized and professional services to cater to theirevery growing need. We at Fortis Securities Limited focus on comprehensive private clientservice capabilities to high net worth investors and investors first hand information relatingto their Investments. The motto at Fortis is to grow with your client and to adapt yourselfaccording to your clients need. Fortis has a state-of-the-art consulting, implementation andinvestment services solution for advising clients to focus on their core competencies.Leveraging our reputation, expertise, economies of scale and continued reinvestment andour private client Services team partners with the clients to develop a thoroughunderstanding of the investment styles

KEY PROGRESSIVE INITIATIVES IN RECENT YEARS INCLUDE:

The depository and share dematerialization systems that have enhanced the efficiency ofthe transaction cycle. The Info Tech-driven National stack Exchange (NSE) with a nationalpresence (for the benefit of investors across locations) and other initiatives to enhance toexchange the quality of financial disclosuresIndian capital markets have rewarded Foreign Institutional Investors (FIIs) with attractivevaluations and increasing returns.

THE OPPORTUNITY TODAY:

With over20 million shareholders, India has the third largest investor base in the worldafter the USA and Japan. Fortis offers specialized and personalized services to its NRIinvestor. We off era complete investment mechanism to help you make the right decisionsat the right times. Fortiseven goes a step further and Invests for you by drawing on itsextensive Research and Technical analysis skills.So as an NRI, all you need to so is register with us for peace of mind and watch yourinvestments Multiply and Grow.

COMMODITIES TRADING

Commodities Trading is a global phenomenon and offers tremendous potential to marketparticipants for both profit taking of small price corrections as well as also to hedgerslooking at managing price risk on account of price fluctuations.

A commodity must meet three basic conditions to be successfully traded in the futuresmarket:1- It has to be standardized and for, agricultural and industrial commodities must bein a basic, raw, unprocessed state.2- Perishable commodities must have an adequate shelf life, because delivery on a


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futures contract is deferred.3- The cash commodity's price must fluctuate enough to create uncertainty, whichmeans both risk and potential profit.Unlike a stock, which represents equity in a company and can be held for a longtime, if not indefinitely, futures contracts have finite lives, in most cases, delivery nevertakes place. Instead both the buyer and the seller, action independently of each other,usually liquidate their long and short positions before the contracts expires the buyer sells

futures and the sellerbuys futures.

MULTI COMMODITY EXCHANGE:

Multi Commodity Exchange of India Limited (MCX), is a new order Exchange with amandate for setting up a nationwide, online multi-commodity marketplace, offeringunlimited growth opportunities to commodities market participants, As a true neutralmarket , MCX has taken several initiatives to usher in a new-generation commoditiesfutures market in the process, to become the countries premier Exchange.MCX, an independent and a denaturalized exchange since inception is all set to introduce

a state of-the-art online digital exchange for Commodities Futures trading in the countryand has accordingly initiated several steps to translate this vision in to reality. Religarebrings to you a unique opportunity to be able to trade in commodities. One of the first andstill a part of a very select group, Fortis enables you to trade in ways never beforepossible.

RELATIONSHIP MARKETING

Relationship Marketing has an aim of building mutually satisfying long term relationshipwith its clients in order to earn and retain their business. Marketer accomplishes this bypromising and delivering high quality product and services at fair price to the other partiesover time. Relationship marketing build longs strong economical, technical and social tiesamong the parties. The ultimate outcome of relationship marketing is the building of

unique company assets called the marketing network.A Marketing network consists of the company and its supporting stakeholders (Clients,Employees, ad agencies and others) with whom it has built mutually profitable businessrelationship. The operating principal is same build an effective network of relationship withkey stakeholders.

yMarketing Channel: To reach target market, marketer uses three kinds of marketingChannel.1. Communication Channel: It deliver & receive message from target buyers and include


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newspaper, television, telephone etc.2. Distribution Channel: To display sell or deliver the physical product or service(s) to thebuyer or user. This includes distributor and agents.3. Service Channel: To carry out transaction with potential buyers. Marketer clearly faces adesign problem in choosing the best mix of communication, distribution and servicechannel for their offerings

ySupply Chain: The marketing channel connect the marketer to the target buyers, the

supply chain describe a longer channel stretching. The supply chain represents a valuedelivery system. Each company captures only a certain percentage of total valuegenerated by the supply chain. When a company acquires competitor or moves upstreamof downstream, its aim is to capture a highly percentage of supply chain value.

yCompetitor: It includes all the actual and potential rival offering and substitutes that abuyer might consider. We can broaden the picture further by distinguishing four levels ofcompetition based on the degree of product sustainability:1. BrandCompetition:A company sees its competition as other companies offeringsimilar products and service to the same customer at similar price.2. IndustryCompetition:A company sees its competition as all company making the

same products or class of products3. From Competition:A company sees its competitors as all companies manufacturingproducts that supply the same service.4. GenericCompetition:A company sees its competitors as all companies that competefor the same consumer.

Marketing Environment: Competitor represents only one force in the environment inwhich the marketer operates. The marketing environment consists of the task environmentand the broad environment.1. Task environment: It includes immediate actors involved in producing, distribution andpromoting the offering. The main actors are the company, suppliers, distributing, dealers

and the target customer.2. Broad environment: It consists of demographic environment, economical environment,natural environment, technological environment, political environment, and socio culturalenvironment. These environment contain forces that can have a major impact intaskenvironment

Principles of Relationship Marketing:

The principal of personal selling and negotiation thus for described are transactionoriented because their purpose is to close a specific sale, but in many cases the companyis not seeking an immediate sale, but rather to build a long term suppliers- customer

relationship. The company wants to demonstrate that it has the capabilities to server theaccounts needs in a superior way.Todays customers are large and often global. They prefer suppliers who can sell anddeliver a coordinated set of product and services to many locations.When a relationship management program is promptly implemented, the organization willbegin to focus as much on managing its customer as on managing its products. At thesame time companies should realize that while there is a strong and warranted movetoward relationship marketing, it is not effective in all situations. Ultimately companies


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must judge which segment and which specific customers will respond profitably torelationship management.

Customer Relationship Management:

Customer Relationship Management (CRM) is a well known business concept. Managerstoday are working hard to build and maintain a relationship with the customer given theimportance of customer lifetime value. While the concepts of CRM and Customer Lifetimevalue are well established and understood by managers, managing customer relationshipshas become a challenge for many managers. Several firms have implemented dedicatedsoftware tools (Seibel ,sales force.com etc.) for customer relationship management, andeven more number of companies is planning to do the same. Few firms have even createdoffices of customer relationship management: Client partners, Account managers,Program Managers etc. In spite of all these efforts, managers are finding it hard tomanage customer relationships the challenge of managing customer relationships led to anew concept called Levels of Customer Relationships developed by INSEAD, France. The

central theme of this concept is:yCustomer relationship is an evolutionary process that can be identified as 6 distinctstages.yCustomers have different needs and expectations during different stages of thisrelationship.yCustomer relationship is a dynamic process and can move from one stage to anotherbased on customer's aspirations and customer's buying experience

Why do customers have a relationship with the vendor?

Every salesman knows that customer often wishes to have a relationship with the vendor.Many firms therefore want to make use of this relationship and have instituted customerloyalty programs - aimed at rewarding loyal customers. For example, Airlines have freemiles program, credit card firms have points program, Grocery stores have a specialdiscount for loyalty cardholders etc. Looking from the customer's perspective, customerexpresses a need for a relationship with the vendor for a few basic reasons: satisfy theirneeds, convenience, reliability, lower cost of transaction. Customers need products orservices and will obtain them, but they are willing to enter into a relationship with the sellerto make the process of buying easier and a more pleasant experience.One has to note that the intensity or depth of the relationship which the customerexpresses to have with the vendor depends in the intensity of his/her needs. If aproduct/service is vital to the customer e.g. financial product, then customer is willing tohave a deeper relationship in order to have their needs satisfied as precisely as possible.On the other hand if the customer wants a routine service or generic product e.g. customerneeds tips from his broker while trading in thestock market, then the relationship issuperficial - characterized by buyer's convenience. To understand this considers thefollowing examples:1. Customer, who is a telecom service provider, wants to implement a ERP software.Since the software has to be customized for the Telco, the customer is willing to establish


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a deep relationship with the vendor by having a development & maintenance contract withthe vendor.

2. Customer, who wants a copy of MS Project installed in a computer. Since this is asimple purchase, the customer wants to buy it from a near by store and install it himself.Thus there is no real relationship between the customer and the vendor.Both examples point to the fact that the level of relationship a vendor enjoys with the

customer is directly dependent on the criticality or importance of customer's Needs. Inshort ,customers enter into a relationship with the vendor in order to serve their ownneeds.

Strengthening Customer Relationships:

We now understand that the depth of the relationship between vendor and customer isdirectly dependent on the intensity of the customer's needs. Also note that the depth ofrelationship is defined by the customer. This creates a challenge for a salesman or amarketer at the vendor firm. For a vendor to increase sales, the vendor firm must improvethe relationship with the buyer. And to improve the relationship, vendor must know the

current level/stage of relationship he has with the customer. So the first step in managingcustomer relationship is to know and understand the levels of customer relationships.

Levels of Customer Relationships:

As mentioned earlier, relationship between buyer and seller can be identified in 6 distinctlevels.Level-1 being the lowest level of relationship and level-6 being the deepest level ofrelationshipLevel-1: Utility Need

Level-2

: Convenience NeedLevel-3: Comfort NeedLevel-4: Personal Recognition NeedLevel-5: Self-_expression NeedLevel-6: CO-Creation NeedFrom a marketing perspective, the customer lifetime value is lowest at level-1 and ishighest at level-6. This is also reflected in the revenue or sales from a customer.Customer, with whom a company enjoys the highest level of relationship, will alsoBe the most profitable customer. It is therefore in the vendor's best interest to have verydeep relationship with the customer.

Level-1: Utility NeedThis is the most basic interaction between customer and vendor. Here the customerdesires to buy a particular product/service. Customer interacts with the seller with the soleaim of acquiring the product/service. The relationship between the firm and the customeris characterized by efficiency in transactions, straight forward, no-frills selling. To increasesales, vendor must work on availability of the product/service. Customer will buy only if aproduct/service appeals to the rational side of the customer i.e. Price and convenience.


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Customer does not bond with the vendor as the relationship is a purely utilitarian one -exchange of goods/service for money. The vendor should respond to the customer (in thislevel of relationship) by providing the required goods/service, and refrain from interactingat a deeper level i.e., by not offering added products/service - other than those requestedby the customer. If the vendor insists or attempts toforce a relationship to a higher level, the customer may "pull-out" thus risking future sales.To understand this, consider this example: If someone purchased a laptop from DELL

Computers. He placed an order online - for a particular configuration. His expectation fromthe vendor is that Dell will deliver the computer on statedDelivery date He is buying from Dell to meet by needs at a price which is attractive for him.If the salesman at Dell attempts to push additional hardware or software - which is notwhat he wanted, he might get annoyed and cancel the order.Vendors must first identify the level of relationship the customer has with them, and thencraft a strategy to deepen it. In this case, a vendor can deepen the relationship byincreasing the numberof interactions. This can be done by: Offering a wide range of products/service, having asales operations - i.e., Internet or all 24 hour shops.For example, Dell can increase the number of customer interactions by offering a full

range of computer accessories: Printers, Scanners, cartridges, office software,Computer games etc. Dell can increase the number of customer interactions by offeringvalue added services such as on-site maintenance, free software updates etc.Utilitarian relationships can be deepened by augmenting the basic service/goods with avalue addition: Cross selling or value addition.

Level-2: Convenience Need

Once the customer has easy access to service/goods that they need, customers look forease of purchase process this denotes a second level of relationship. The vendor shouldrespond by providing services that simplify the buying process i.e., identify and eliminate

those procedures that are a hindrance to obtaining a product/service.For example, having a shorter checkout lines in a store, having the products courier &providing the tracking number to the customer, having a service personal ready to attendthe customer when the customer enters the bank/hotel/office etc.To improve the buying process, the vendor must understand thoroughly the entirecustomer purchase experience and then eliminate the nagging problems in the purchaseprocess. Service companies often resort to mystery shoppers - who act as customers andbuy the product/service to measure & improve the buying experience. Often times,managers listen to feedback from front-line employees for suggestions to improve thecustomer's buying experience.For example, Dell provides the exact shipment details of the computer and is delivered on

the specified time. In addition, Dell has a complete e-Commerce website which enables asecure and easy payment method. Airlines provide comfortable lounges at the airport -while customers wait for their flight. Airlines also provide e-ticketing, curb side luggagecheck in, on-line flight details etc., to make customers feel comfortable during thepurchase process

Often times, there are several instances of customers abandoning their purchase processin the midway. This is the sure sign of an inefficient and inconvenient buying process


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Relationships at this level can in strengthened by widening the service interactions withcustomers. By this I mean, look at the ways the customer buys yourProduct/service and then provide additional services to make it simpler and easier for thecustomer. Customer Activity Mapping (CAM) & Customer Decision Mapping (CDM) are thetools that can be used to analyze the decision making, buying, using, and consumptionexperience. And in each stage, the objective of the vendor is to identify situations thatpose obstacles to the buying process.

Making the buying process as pleasurable as possible, a vendor can strengthenrelationship with the customer in this level and also take the relationship to the next level.

Level-3: Comfort Need

Once the customer has a convenient buying process, then they wish to have a "pleasantshopping experience" i.e., the customer seeks a buying interaction where he feelscomfortable. This implies that the vendor should foster a buying environment in whichcustomer feels comfortable and is characterized by an agreeable and relaxing purchaseambiance.For example, many multi-million dollar business deals are done at resorts - away from the

clutter of the office environment. BASF, a fortune-100 chemical company often conductsthe contract negotiations on a luxury yacht. This provides the right ambiance and mood toput the customer at ease and feel comfortable during the buying process.Irony of this "comfort need" is that customers often overlook the comfort factor - and oftencustomer notices the absence of the comfort. A discomfort during theBuying experience is easily noticed and registered, while comforts are forgotten bycustomer.CRM efforts in this level must be focused on making the customer feelcomfortable; create a feel-at-ease feeling. The marketer should strive to providecustomers comfort, fun, surprise, and other means of generating a positive feeling. Notethat this is distinctly different than relationship building at level-2, where the focus was toremove any factor which caused inconvenience to the customer. Relationship is built on a

feeling of ease and comfort can be strengthened by providing more ofthe same - greater comfort, fun and pleasant interaction environment. This involvestraining the front-end employees to provide a Comfortable experience to the customer andbeing sensitive and responsive to the customer's level of interaction the marketing effortsmust be directed at improving/building the memory of pleasant experiences of thecustomer.

Level-4: Personal Recognition Need

Often times, regular/loyal customers expect the vendor to interact in a way that his/herpersonal choices are recognized. This implies that the customer is seeking a level ofrelationship where they expect the vendor to recognize their needs - without them askingfor it. At this level, the loyalty of customer has been well established; customer enjoys theconvenience and a feeling of comfort. Here, in this level of relationship, the customerneeds are "personal". In earlier levels, the needs were mostly contextual, i.e., based onthe context of buying experience.CRM efforts at this level are to personalize theservice/product offerings. For example, financial institutions treat their high valuecustomers with personalized checkbooks, providing a personal


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financial advisor, etc. In business-to-business environment, this is characterized by havinga dedicated relationship manager who interacts with the client, who knows the clientsexact needs and has the authority to deliver the customer's needs. The "relationshipmanager" or "client partner" can also make suggestions; provide consulting advice to thecustomer - Along with dinners/lunches, tickets to popular events etc.

Advent of Internet has created opportunities for vendors to provide customized webinterfaces to each of their clients. Amazon.com ebay.com etc Provide customers with

customizable web interfacesTo bring a customer to this deep level of relationship, the level-3 relationship of making thecustomer feel comfortable must always be accomplished. Only when the customer iscomfortable, vendor can discover (discreetly) the personal needs of the customer - andthen move the relationship to the next higher level. Relationship at Level-4 is analogous tothat of a romantic partner - but not a spouse or fianc. The relationship at this level is morepersonal but without invading the privacy of the customer. The timing therefore needs tobe right - so that any potential tensions or conflicts are avoided or reduced to minimum.The company must know the customer details, possible tastes and preferences sufficientlywell to Build the relationship. Interactions must be respectful as exchange of personalinformation may be perceived as invasive.

The irony of the CRM systems at this level is that customer feels that the CRM systemscompromise customer's privacy - and for that reason most customers are reluctant toshare personal information with the vendor, which in turn cause most CRMimplementations fail. A salesman or marketer or account manager must therefore takeextra precaution not to reveal any personal information of the customer to the CRMdatabase system. This personal information must be carried in the mind of the vendorsalesmen. Customer's need for personal recognition may be met by very simple acts bythe salesman, such as rewards for customer loyalty (given to the customer - i.e., buyingagent or the key decision maker), tailor made products, and words of appreciation.

Level-5: Self-_Expression Need

Once the customer feels that the vendor recognizes him/her as person and can associatepersonally with the vendor, the customer is ready for the next level of relationship - that isof Self-_expression. Customers who are in this level of relationship expect the vendor tofocus on customizing and personalizing the product/service offerings. The customerexpects the vendor to have a clear understanding of their needs and the vendor should beable to meet them. The relationship is characterized by mutual trust, confidence & respect.For example, Dell Computers being a customer of Intel expects Intel to know its needs for

latest and most powerful microprocessors for the Christmas season. The Customer thenexpects Intel (vendor) to announce and supply the latest processors in time so that Dellcan ship the computers to its customers in time for Christmas. In a consumer world, acommon example will be that of a (famous) client and his/her fashion designer. The clientexpects the fashion designer to know his/her tastes and provide clothes accordingly.It must be noted that in a B2B world, customers are more rational. Their business needsdrives the relationship and is partly independent of personal factors. As a result, vendorcan build this relationship by learning the customer needs. Based on these


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learning/insights, vendor should be able to offer highly customized and personalizedofferings. Customer relationships in levels 1-4 are defined by customer's experience and istherefore heavily dependent to the external environment (i.e., external to the customer). Atlevels 5 and above the relationship depends on internal and external factors includingrational and emotional considerations.The key for success in building relationship at this level is to understand the customer'simplicit needs - i.e., those needs which are not expressed verbally. Vendor can strengthen

the relationship by understanding the customer's implicit needs and focusing on differentways to customize and personalize the offerings. In a B2B setting, this involvesunderstanding the customer's business operations, business models and then providingcustomized solutions: Like releasing products in time for Christmas or having goods

packed in a truck in a manner it is efficient for customer etc.

Level-6: Co-Creation Need

This denotes the highest level of customer relationship. At this level, customer is verycomfortable dealing with the vendor; the relationship is characterized by a sense ofcollaboration. The customer feels a need for a unique product/service and is willing towork with the vendor to develop the product/service. Often the idea of co-creation isinitiated by the customer to the surprise of the vendor. Co-creation relationships arepersonal and rational. At this level of relationship, the customer loyalty & trust is very high.Customers are willing to invest for joint development ofproducts/service. Customer feel closely bonded to the vendor - to the point that thecustomer seeks a joint destiny with the vendor. I.e., some aspects of customer's interestsmerge with that of the vendor's interests. Co-Creation denotes the highest level ofcustomer relationships. This relationship can be strengthened by broadening interactionswhich involve co-creation of products/services.

SWOT ANALYSIS

A SWOT analysis focuses on the internal and external environments, examining strengthsand weaknesses in the internal environment and opportunities and threats in the externalenvironment

STRENGTHS:

Services

As a product Religare is a extremely innovative product with very less cost. Services likeonline trading facility, institutional and domestic broking, customized research reports withalmost 80% efficiency etc give Religare an edge over its competitors. Religare providesother support services that make retail investors more confident and assured with theirtrading. SMS alerts (allowing traders and investors to make the most of the availableopportunities), Softer, intangible features like imagery, equity driving preference.


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Relationship managers

The company has a team of relationship managers who are dedicated to the service ofclients. This RMs takes care of clients even smallest problem and makes efforts to solvethem through their expertise. They also help their clients to invest their wealth in themarket.

Distribution Network

Religare with almost 150 branches beefed up by comprehensive online research, adviceand transaction services. In near future expect to make 200000+ retail customers beingserviced through centralized call centre / web solution.

Marketing

Religare (previously Fortis securities) is a veteran equities solutions company withloads of experience in the Indian stock markets. Religare does not claim expertise in toomany things. Religare expertise lies in stocks and that's what it talks about with authority.

So when he says that investing in stocks should not be confused with trading in stocks ora portfolio-based strategy is better than betting on a single horse, it is something that isspoken with years of focused learning and experience in the stock markets.

yProducts

Companys product line is a basket of financial services offered to its clients. Its a allproduct single shop for investors. Here we offer Along with Equity, Mutual funds, personalloans, PMS,Corporate Finance and Investment banking etc to our customers. Ourproducts are customized according to individual demand and preference

WEAKNESS:

yCustomer Satisfaction

As far as customer satisfaction goes Religare has to tighten its Boots. The company doesnot have enough Relationship managers to cater to huge customer base. The accountopening takes 2 working days whereas an India bull takes half the time for this purpose.

yBranding

Though the company has a efficient products but large part of investment interestedpopulationdoes not know the company. The most basic expectation for a trader or investor when onebegins trading is that one must get timely delivery of shares and proceeds from sale ofshares. Also ones cash balances with the broker must be safe and secure. Though thisconfidence in the broker


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comes with time and experience, good and transparent practices also play a major role inimbibing confidence in traders.

Competition from banks and Niche PlayersMost of the banks due to good branding have the faith of the customers of their bankingdatabase. So they enjoy the liberty of huge database and customers find it more reliable totrade there rather than with a unknown broker. Also banks like HDFC Bank and ICICI

Bank have the advantage of linking the trading accounts of their customers to savingaccounts. This makes trading easier, and at the same time a trader withdraws exactly asmuch money from his account as is needed to complete the trade. Similarly salesproceeds are credited directly to saving account. Niche players presence as sub brokersor Small broking house like Abhipra, Way to wealth etc. attracts a good share of marketand run parallel to giant companies

OPPORTUNITIES:The external environment analysis may reveal certain new opportunities for profit andgrowth.

yEver-increasing market After the NSE brought the screen based trading system stock markets are now moresecured which has attracted lot of retail investors and the demand is increasing day byday. This has resulted in improved liquidity and heavy volumes on transactions. Religare isone of the early entrants here. As to how much it will roar and how swift it can swoop onthe market, the future alone can answer such queries. Religare has been a mega playerand is known for being a moverof stocks. It is also known for putting big deals through and enjoys good networking withthe FIIs. It has been dynamic enough to move with the times and capture the opportunitiesthat the market throws up from time to time.

yImproving Technology

In country like India technology is always improving which gives the company a chance tokeep on improving their product with time whereas for the small players like local brokers itwill be difficult to keep the same pace as the changing technology. Also with SEBI lyingdown some strict guidelines small brokers are finding it harder to retain the customers withno research department and small capital. The traditional business model is highlydependent on a large network of sub-brokers, and many established players may not havesystems (technology, customer service, etc.) capable of directly servicing so many retail

customers.

yUnfulfilled needs of the customers

With so many competitors offering their products in the market but no one is able tocompletely satisfy the customers. Some have the problem of lack of information or somewere scared of volatility of the stock markets. Religare has the opportunity to tap thisunsatisfied set of customers and to make hold in the market. The Internet serves to break


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all barriers to information, as it offers an extremely hassle-free investing platform. And,Religare hopes to fully utilize and capitalize on this platform. This original idea by Religareitself was born out of the consumer's need for a more transparent, easy to understand andconvenient option of investing in stocks.

yEducation Level

The education level in the country is improving year after year as far as technology goes.With that the understanding of the stock market is also increasing and a lot of retailinvestors are steeping in the markets which is being shown by increasing volumes,transactions and indices

THREATS:

yNew CompetitorsA lot of new competitors are trying to enter the market in this bullish run to taste the flavorof this cherry. This is creating a lot of competition for large players like Religare and it iscreating little confusion in the minds of the customers about the services provided by thebroker. Also many banking firms are entering into the market with huge investment.Competitors like ICICI, kotak, hdfc, 5-paisa etc. are posing a lot of threats to the company.

Technology based businessOnline trading is totally based on the technology which is quite complex. Typically, thetechnology solution has to start from the Internet front-end (or the screen that you seewhen you begin trading). Then it needs to get into the 'middle tier' of risk managementsystems that assess data from banks and depository participants (DP), calculate client riskat that point in time, and give the 'Go/No go' advice to the trade. So technology is a kind ofthreat because unless until it is working properly it is good but internet is not that safe.Though a lot of cyber laws are being made but not yet executed.Switch over cost

The cost of switching over from one company to other is minimal therefore the companycant even stop for breathing i.e. it has to provide quality service all the time to its clients.


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Interpretation and analysis


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1. In which profession are you engaged in?

RESPONDENTS PERCENTAGE

Business 25 50%service 10 20%Professional 10 20%

student 5 10%

Total 50


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Interpretation:

50% of the respondents are businessman20% of the respondents are serviceman20% of the respondents are professionals10% of the respondents are students

Inference:

From the above survey most of the respondents are found to business manby profession

0

5

10

15

20

25

30

business service professional student


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2. Do you trade in stock market?

respondents percentage

Yes 39 78%

No 5 10%Earlier, but nowstopped

6 12%

total 50


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Interpretation:

78% of the respondents trade in stock market10% of the respondents do not trade in stock market12% of the respondents trade earlier

Inference:

From the above survey most of the respondents trade in stock market.

yes

78%

no

10%

earlier,but now

stopped

12%


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3. How much is your income or your credibility?

respondents Percentage

Between 1-2

lac 1020%Between 2-3lac 20 40%

Between3-4lac 15 30%

Above 4 lac 05 10%

total 50


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Interpretation:

20% of the respondents are found to be between 1-2 lac40% of the respondents are found to be between 2-3 lac30% of the respondents are found to be between 3-4 lac

10% of the respondents are found to be more than 4 lac

Inference:

between 1-2 lakh

20%

between2-3 lakh

40%

between 3-4 lakh

30%

above 4 lakh10%


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From the above survey most of the respondents are found to be between 2-3bracket.

4.how much you trade in stock market?


10000-5000023 46%50000-100000 15 30%

100000-150000 08 16%

Above 150000 04 08%

50


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Interpretation:

46% of the respondents invest 10000-5000030% of the respondents invest 50000-10000016% of the respondents invest 100000-150000

8% of the respondents invest above 150000

Inference:

From the above survey most of the respondents invest between 10000-50000in stock market

0

5

10

15

20

25

10000-50000 50000-100000 100000-150000 above-150000

Chart Title


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5.how much return you get after investing?

Respondents percentage

Below 5% 1020%5-10% 27 54%

10-15% 09 18%

15-20% 04 08%

TOTAL 50


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Interpretation:

20% of the respondents get below 5%54% of the respondents get 5-10%18% of the respondents get 10-15%8% of the respondents get 15-20%

Inference:

From the above survey most of the respondents get 5-10% return on theirinvestment.

0

5

10

15

20

25

30

below 5% 5-10% 10-15% 15-20%


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6. what according to you is your risk level?

RESPONDENTS PERCENTAGE

Highly risk 05 10%Average 27 54%

Moderate 09 18%

Risk free 09 18%

TOTAL 50


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Interpretation:

10% of the respondents are highly risky54% of the respondents are average

18% of the respondents are moderate18% of the respondents are risk free

Inference:

From the survey most of the respondents are average risk takers

highly risk

10%

average

54%

moderate

18%

risk free

18%

Sales


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7. which mode of trading do you prefer?

respondents percentageOnline 19 38%

Offline 31 62%

TOTAL 50


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Interpretation:

38% of the respondents prefer online68% of the respondents prefer offline

Inference:

0 5 10 15 20 25 30 35

online

ofline


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From above survey most of the respondents prefer offline trading as they arenew to stock market

8. what has been your investment experience in stocks?


Excellent 05 10%

Good 12 24%

Average 20 40%

Bad 13 26%

TOTAL 50


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Interpretation:

10% of the respondents feel excellent24% of the respondents feel good40% of the respondents feel average26% of the respondents feel bad

Inference:

excellent

10%

good

24%

average

40%

bad

26%


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From the above survey 40% of the respondents have average investmentexperience at stock market

9. what extra services do you expect from your broker?


Depositary2

4%Marginal financing 4 8%

P.M.S 7 14%

Trading 9 18%

Research 9 18%

All the above 19 38%

TOTAL 50


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Interpretation:

4% of the respondents prefer depositary service8% of the respondents prefer marginal financing

14% respondents prefer P.M.S18% respondents prefer trading18% respondents prefer research38% of the respondents prefer all the above services

0

2

4

6

8

10

12

14

16

18

20

depositary marginal

financing

P.M.S trading research all the above


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Inference:

From the above survey most of the respondents prefer all the services thatany broker must provide to its clients

10.Are you satisfied with the service of your broker house?

respondents percentageYes 27 54%

No 5 10%

Cant say 18 36%

TOTAL 50


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Interpretation:

54% of the respondents say yes

10% of the respondents say no36% of the respondents say cant say

Inference:

From the above survey 54% of the respondents are satisfied with service oftheir broker house.

yes

54%

no

10%

can't say

36%

Sales


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11.Rate the service according to your criteria


Excellent 5 10%

Very good 15 30%

Good 21 42%

Poor 9 18%

TOTAL 50


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Interpretation:

10% of the respondents say excellent30% of the respondents say very good42% of the respondents say good18% of the respondents say poor

Inference:

From the above survey most of the respondents rate good to servicesprovided by their broker house.

0

5

10

15

20

25

excellent very good good poor


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12.Have you heard of religare securities?


Yes 44 88%

No 6 12%

TOTAL 50


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Interpretation:

88% of the respondents know religare securities12% of the respondents dont know about religare securities

Inference:

From the above survey most of the respondents know religare securities

yes

88%

no

12%


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13.If yes then specify

Respondents percentage

Friends 17 34%

newspaper 19 38%

T.V 10 20%

Other 4 8%

total 50


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Interpretation:

34% of the respondents say friends38% of the respondents say newspaper20% of the respondents say T.V.8% of the respondents say other

Inference:

From the above survey most of the respondents say newspaper as thesource of information about religare securities

0

2

4

6

8

10

12

14

16

18

20

friends newspaper T.V other


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My Experience at Religare Securities

I was in Marketing & Sales section under the guidance ofMr. Anurag srivastava (BranchManager), andMr.Prassana mishra. My job was to emplane the share trader with ourcompany. I basically target those people who are sub-broker but along with this I alsotarget those people who are active traders and also those people who are new to thissector.My job was to first generate the lead then contact with them then explain the wholeconcept to convince them to join our organization. I have to collect the Trading Form and aCheque of5,00 Rs from them. It help me lot in enhancing my communication skills and myrelationship building attitude. It was totally a field job and I really enjoy working with bossand other employees who are also very cooperative.


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FINDINGS:

In this survey most of the questionnaires are filled from brokerage houses where clients siton the terminal & trade in the stocks. As the data collected shows that people who mostlyinvest in the market are businessmen & service class person who dont have enough timeto keep continuous watch on the market fluctuation so they need regular assistance fromtheir relationship manager who is assigned to them so every company is suggested toenforce their relationship managers to stay in contact with their clients. There are some Noanswer in this survey because many time clients may be with his friend who dont trade inthe market & that friend might be interested or not do the relationship manager in thatbrokerage firm must take some extra care for them. Here difference is because of thepresence of the friend of client in the brokerage house who doesnt want to trade in thestock market because he might be afraid of losses or due to lack of resources. But if that

friend has lack of time than the relationship manager has to give a proper assistance&dedication to that person so that friend can make himself to trade in the stocks. Astechnology increases most of the people have less time to spend on the other activitiesthan their core business so most of the clients prefer online trading so they can put theirbids whenever they want as 24*7. In the case of online trading clients are not need to beprovided any kind of assistance from their relationship manager but if the dedicatedrelationship manager provide them a good assistance can put that relationship manager &that organization apart from their competitors. But even after the presence of internetsome people like to trade through offline mode reasons might be lack of knowledge or costsensitive as offline product is used to being at lower cost so here in offline that dedicatedrelationship manager has to be in contact with his client. Most of the people look for

moderate return because of presence of risk well as the age group changes the risk-takingfactor as age increase people started investing in bonds where a fixed return is possible.As the data shows most of the people were satisfied with their brokers because they aregiving them profits on their investment & they were ready to pay more to their brokers ifthey get some extra services.


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Limitation of the study:-

Time spent in terms of data collection was less as most of the time we are busy tocomplete our target

Non availability of related people.Awareness level about the company is very low among the clients.Market was too volatile during the period of research.Sample size is small so sampling error may be committed.


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Conclusion

In spite of the bleak and grim outlook the future of capital market it is growing at a veryhigh pace. Taking this things into consideration there are lots of opportunity for the Broker

House which already exist and which are due to enter in the Indian market. These are littleawareness about Equity and Mutual funds in India people have accepted it as one of themajor investment avenue. As people have entered in this particular investment avenuethey have lost there money because of movement in the market which is below the parvalue and this has shaken the faith of investor in this particul

DILCAP +NGR

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