PROJECT REPORT

ON

A COMPRATIVE STUDY OF BROKERAGE PLANS OF RELIGARE

SECURITIES LTD. WITH VARIOUS BROKERAGE FIRMS

Session-2010-2011 Batch-2008-

2011

Submitted in the partial fulfillment for the award of the degree of

Bachelor of Business Administration (BBA)

To

DR. B. R. AMBEDKAR UNIVERSITY, AGRA

Within the Organizational Boundaries of

GLA Institute of Professional Studies, Mathura

GUIDE SUBMITTED BY

Miss. Hina Sharma Gautam bajajAsst. Professor B.B.A. VI SemesterGLAIPS – Mathura University Roll No: 80040

Enrollment No: 0871161

Certificate

This is to certify that the dissertation entitled “A COMPRATIVE STUDY OF

BROKERAGE PLANS OF RELIGARE SECURITIES LTD. WITH

VARIOUS BROKERAGE FIRMS IN MATHURA’’ submitted by

GAUTAM BAJAJ, is an original and independent work done by him under my

supervision, in the partial fulfillment for the award of Degree of Bachelor of

Business Administration (BBA) Session 2010-11, Batch 2008-11 of Dr. B. R.

Ambedkar University, Agra.

Place: Mathura

Date:

HINA SHARMA

Asst. ProfessorGLA Institute of Professional Studies 17th K.M Milestone, NH # 2

Mathura (U.P.) – 281004

UNDERTAKING

I, Gautam Bajaj student of BBA VI semester, GLA Institute of

Professional Studies, Mathura, do hereby solemnly declare that the Research

Project Report on ‘A COMPARATIVE STUDY OF BROKERAGE PLANS

OF RELIGARE SECURITIES LTD. WITH VARIOUS BROKERAGE

FIRMS IN MATHURA’ is the outcome of my own efforts and submitted by

me in the partial fulfillment for the award of Degree of Bachelor of Business

Administration (BBA) Session 2010-11, Batch 2008-11 of Dr. B. R. Ambedkar

University, Agra.

The same has not been submitted to any other university or institute for the

award of any degree or diploma.

Place:

Date: GAUTAM BAJAJ

University Roll Number : 80040

University Enrollment No: 0871161

Acknowledgement.

First & foremost I offer my Gratitude’s to the almighty who gave me

strength, courage and blessing to carry out a successful study. I am extremely

thankful to Director of GLAIPS for such a magnanimous support by way of

extending exemplary infrastructure facilities at the Institute. I am also thankful

to my project guide Miss. HINA SHARMA for helping me to formulate this

project and guiding me in its analysis and implementation. Equal thanks also go

to all Faculty & Staff members of the Institute for extending open support.

I convey a sincere gratitude to my parents and friends for their encouragement

and support.

GAUTAM BAJAJ

EXECUTIVE SUMMARY 

Religare Securities LTD. is a Brokerage house, which deals in purchase and

sales of financial securities on behalf of these clients

The project was undertaken through regular visits to the branch. The Branch

Head who was also my industry mentor assigned the work to me. Meeting

clients, solving their queries, executing their transaction etc. were some of the

main feature of the project. 

Basically the project revolves around to analyses that how to invest in the

market so that a customer could get the sufficient return on his investment. Also

this project reveals the norms and conditions of the broking house so that a

client could easily trade in the market. The project depicts the various

settlements and obligations while trading such as fund settlement , clearing ,

auctions , shortage of funds, payment modes, also in this project NSE

companies are listed as well as their codes. Apart from it all the walking clients

were deeply observed while they came into the branch.

Suggestions are given to the branch in order to increase their efficiency and to

take the advantage of opportunities and to over come from their weakness. 

 

 

 

 Table Of Contents

I. Certificate

II. Undertaking

III. Acknowledgement

IV. Executive Summary

Chapter 1 : Introduction

Chapter 2 : Introduction to Brokerage Industry

Chapter 3 : Religare Enterprises Ltd.

Chapter 4 : Religare Securities Ltd.

Chapter 5 : The Competitors

Chapter 6 : Research Methodology

Chapter 7 : Analysis and Interpretation

Chapter 8 : Recommendations

Chapter 9 : Annexure

Chapter 10 : References

LIST OF IILUSTRATIONS

1. Increasing Internet trading Graph 1

2. Percentage of sub brokers present in each region Graph 2

3. Percentage of branches in each region Graph 3

4. Institutional structure of the Indian stock market Table 1

5. Pan India presence expanding Graph 4

6. Geographical distribution Chart 1

7. Corporate structure of Religare Fig 1

8. Religare area of operations Table 2

9. Increased client coverage (Equity client) Graph 5

10. Increased client coverage (Priority client group) Graph 6

11. Increased online trading client Graph 7

12. Increased portfolio management client Graph 8

13. Increased income from total brokerage Graph 9

14. Increased income from priority service client Graph 10

COMPANY PROFILE :-

VISION AND MISSION OF RELIGARE SECURITIES LTD .

VISION

      To be the largest financial services organization in Indian retail market

and become a one stop shop for all non-banking financial products and services

for the retail customer.

    MISSION

Rapidly increase the number of our client relationships to clear market

leader

Provide our clients with a very broad array of product offering

  

INTRODUCTION:-

Globalization has proved to be a boon for the Indian economy. After

globalization there has been a tremendous growth in the Indian economy.

Every sector of the economy has shown an outstanding performance after

globalization.

The project was under taken as to study the Indian online trading. Earlier

Trading was confined in limited boundaries but now the scenario has been

totally different after the entrance of online trading. There is a cut throat

competition between the broking houses. Now the brokers are more concerned

about their customers to improve their performance. The sector is undergoing

fundamental changes that have diluted its traditional role of protecting small

deposits against capital and income risk and facilitating the conversion of

Savings into investment.

Also there have been a drastic increase in the volume of share traded on stock

exchange and with that the online trading has shown Bull Run.

Increasing Internet trading volume:-

Online trading is the service offered on the internet for purchase and sales of

shares. In the real world you place orders on your stock broker either verbally or

in a written form. In online trading you will access a stock broker’s website

through your internet enabled PC and place orders through the brokers internet

based trading engine. These orders are routed to the stock exchange without

manual intervention and executed their own in the matter of a few seconds.

From the past two years the volume of the internet trading has increased largely.

(Graph 1)

Introduction to Brokerage Industry:-

Post major reforms initiative in early 2000s brokerage industry in India is

experiencing rapid growth and diversity. At present apart of brokerage business

industry is also offering wide range of financial services. These developments

have resulted in huge spurt in business and also growing market share of the

large sized brokerage houses has led to surge in enterprise value. In the year

2007 IPOs of large firms (Motilal Oswal, Religare, and Edelweiss) received

huge response (Indian catalog, 2001). At the same time global and private

equity firms have taken stake in brokerage firms. In India there are about 45

equity brokerage houses that are at present listed in the stock exchanges.

Industry Insight:-

Majority of the broking firms entered the business post 1990. A majority

of members have memberships in more than one stock exchange and

across equities, equity derivatives and commodities futures in domestic

and International stock exchange.

On the back of growing equity culture broking activity is spreading in

Tier II and Tier III cities in India.

Deepening financial system and economic growth has provided growth

and expansion opportunities to broking firms. Access to public equity

markets and growing international investor’s interest has enabled them to

     raise resources.

Although there are more than 9000 brokers registered with SEBI 80% of

the turnover in NSE and BSE is accounted by about 100 brokers.

One of the oldest trading industries that have been around even before the

establishment of BSE is the Indian Broking Industry. Post liberalization there

have been number of changes, despite this the stock broking industry was at its

pace and retained its sustainable growth.

To study the trend in the stock broking industry, if we take the database of

over 394 broking firms. All the data for the study was collected through

responses received directly from the broking firms. The insights have been

arrived at through an analysis on various parameters, pertinent to the equity

broking industry, such as region, terminal, market, branches, sub brokers,

products and growth areas.

Some key characteristics of the sample 394 firms are:

On the basis of geographical concentration, the West region has the

maximum representation of 52%. Around 24% firms are located in

the North, 13% in the South and 10% in the East

3% firms started broking operations before 1950, 65% between 1950-

1995 and 32% post 1995.

On the basis of terminals, 40% are located at Mumbai, 12% in Delhi,

8% in Ahmadabad, 7% in Kolkata, 4% in Chennai and 29% are from

other cities

In the cash market, around 34% firm’s trade at NSE, 14% at BSE

and 52% trade at both exchanges. In the derivative segment, 48% trade at

NSE, 7% at BSE and 45% at both, whereas in the debt market, 31% trade

at NSE, 26% at BSE and 43% at both Exchanges. Majority of branches

are located in the North, i.e. around 40%. West has 31%, 24% are located

in South and 5% in East.

In terms of sub-brokers, around 55% are located in the South, 29% in

West, 11% in North and 4% in East

In terms of various areas of growth, 84% firms have expressed interest

in expanding their institutional clients, 66% firms intend to increase

FII clients and 43% are interested in setting up JV in India and abroad

In terms of IT penetration, 62% firms have provided their website and

around 94% firms have email facility.

(Graph 2)

Branches & Sub-Brokers:-

The maximum concentration of branches is in the North, with as many as

40% of all branches located there, followed by the Western region, with 31%

branches. Around 24% branches are located in the South and East constitutes

for 5% of the total branches of the total sample.

In case of sub-brokers, almost 55% of them are based in the South. West and

North follow, with 30% and 11% sub-brokers respectively, whereas East has

around 4% of total sub-brokers.

(Graph 3)

Where one firm looses out to other:-

Lack of well established branches put smaller brokers at a disadvantage

when compared to larger Brick and Mortar players who have presence in

every corner of the country.

Bulk of client base is made up of retail investors. Institutional and other

high value high volume investors prefer to trade with so called blue chip

brokers. Retail investors are “easy come easy go” accompanied with

inconsistent trading habits. In Bull Run they gain confidence to invest but

in correction phase they lose confidence easily.

High competition among Stock brokers has put significant pressure on the

prices.

Market consolidation and merger are expected to keep the broking

industry viable in the long run.

Demanding customers asks for 24/7/365 access to

information and transaction capability. Providing it with minimum

overheads is very challenging especially for newer firms who are yet to

realize margin of scale.

Foreign banks for a slice of equity business pie

In the recent period, global and domestic private equity firms have taken stake

in brokerage firms such as Anand Rathi (Citigroup), Edelweiss (Lehman

Brothers), Geojit (BNP Paribas), SMC (Millennium India), Motilal Oswal (New

Vernon), Network Broking (Amas Bank of Hindu as) and India Info line (Orient

Global) etc.

Stock Exchange - Business Trends:-

Indian Stock Markets And Exchanges:-

There are 23 recognized stock exchanges in India, including the Over the

Counter Exchange of India (OTCEI) for small and new companies and the

National Stock Exchange (NSE) which was set up as a model exchange to

provide nation-wide services to investors.

Bombay Stock Exchange (Bse):-

Bombay stock exchange is the oldest stock exchange of

India For the premier Stock Exchange that pioneered the

stock broking activity in India, 128 years of experience seems to be a proud

milestone. A lot has changed since 1875 when 318 persons became members of

what today is called "The Stock Exchange, Mumbai" by paying a princely

amount of Re1.

Since then, the country's capital markets have passed through both good and bad

periods. The journey in the 20th century has not been an easy one. Till the

decade of eighties, there was no scale to measure the ups and downs in the

Indian stock market. The Stock Exchange, Mumbai (BSE) in 1986 came out

with a stock index that subsequently became the barometer of the Indian stock

market.

SENSEX

SENSEX is not only scientifically designed but also based on globally

accepted construction and review methodology. First compiled in 1986,

SENSEX is a basket of 30 constituent stocks representing a sample of

large, liquid and representative companies. The base year of SENSEX is

1978-79 and the base value is 100. The index is widely reported in both

domestic and international markets through print as well as electronic

media

The index is calculated on the “Free-float Market Capitalization”

methodology. The "Free-float Market Capitalization" methodology of

index construction is regarded as an industry best practice globally. All

major index providers like NIKKEI, NASDAQ and DOW JONES use the

free float methodology. The growth of equity markets in India has been

phenomenal in the decade gone by. Right from early nineties the stock

market witnessed heightened activity in terms of various bull and bear

runs. The SENSEX captured all these events in the most judicial manner.

National Stock Exchange (Nse):-

The National Stock Exchange of India Limited has genesis in the report

of the High Powered Study Group on Establishment of New Stock

Exchanges, which recommended promotion of a National Stock

Exchange by financial institutions (FI’s) to provide access to investors

from all across the country on an equal footing. Based on the

recommendations, NSE was promoted by leading Financial Institutions at

the behest of the Government of India and was incorporated in November

1992 as a tax-paying company unlike other stock exchanges in the

country.

On its recognition as a stock exchange under the

Securities Contracts (Regulation) Act, 1956 The Capital Market (Equities)

segment commenced operations in November 1994 and operations in

Derivatives segment commenced in June 2000. When India’s National Stock

Exchange (NSE) was started in 1994, few believed it would survive. How could

a stock exchange run

by a team of untested professionals headed by a former development banker

succeed against existing stock exchanges run by third generation, savvy

stockbrokers?

Critics even went to the extent of warning that NSE’s sophisticated systems

would be a misfit in an Indian capital market dominated by physical deliveries,

arbitrary speculative trade, and lengthy trade settlements.

Today, with number of trades touching 2.5 million a day and turnover touching

turnover touching Rs 100 billion in value terms, NSE towers over all the other

stock exchanges in the country.

In a ten-year period (NSE completed a decade on June 30, 2004) the National

Stock Exchange has tilted the market system in favour of investors and away

from a significant bias in favour of intermediaries. For a mass of investors

across the country, the NSE is now the focal point for

trading in stocks, and futures and options.

The Stock Exchange, (NSE) came out with a stock index that subsequently

became another barometer of the Indian stock market known as NIFTY.

Nifty been the focal point of investors, as it provides trading the shares as well

as index in futures and options. Before Nifty came into existence trading of

index concept was not present it was introduced by Nifty and is present in it

only, till date.

Cash Market And Derivatives:-

National stock exchange gives the investors different option where an investor

can deal the equities into different market situations like cash market and

derivatives.

Cash market is simply the equity market where investors have to pay the

security amount which is done in BSE also but in NSE investors has the choice

of dealing in derivatives.

Derivatives are the future market where investors have the option of dealing in

the price list of futures for which there a separate index is present known as

NIFTY FUTURE.

In Derivatives there are two choices available for an investor FUTURES AND

OPTIONS.

FUTURE – In future market shares are deal in lots

these lots could be of different numbers like 100, 200, 500 etc. Investors

while taking over these lots and coming under the contract takes the

position of the shares by paying the 1/3rd amount of the total holdings.

(Could be understood by a formula).

Holdings of investors = (shares lot * price of the lot) / 3.

This formula explains that as investor is interested in taking 2 lots of

reliance of 100 shares of Rs. 900 , the investor has to pay:-

(2*100*900) / 3 = 60000/

Which shows the investor is taking the position of Rs. 180000/- in just Rs.

60000/- in future market which the area of attraction of this particular market.

These holdings are taken for 1 month, 2 months and three months according to

the investor’s preference. The beauty of this contract is that the remaining 2/3rd

money of the holdings is paid by the broking house the investors dealing with.

Investor coming into this contract should know that by the time of contract he is

in like of 1 or 2 months investor should clear its position before the last

Thursday of the expiry month.

OPTIONS – Option is a contract where the investor has two options to

deal with CALL and PUT. The concept of call and put is opposite to each

other call is the contract where the investors believe that the market is

going to be BULLISH in near future and put option is taken when he

thinks that the market is going to be BEARISH in

the future.

In the call option investors is benefited if market drives up in future and in put

will be benefited if it slips down.

Funds mobilized in primary market rose to Rs 1, 74,143 cr through 558

issues in 2007-08 against Rs 55,654 cr through 451 issues in 2006-07.

Out of this Rs 87,029 cr were raised through 124 public and right issues

against Rs 33,508 cr through 124 issues in 2006-07. Total of Rs 42,595cr

Was raised through 85 IPOs in 2007- 08 against Rs 28,504 cr raised

through 77 IPOs in 2006-07.

Net resource mobilization by mutual funds grew to Rs 1,53,801 cr in

2007-08 with a 63% rise from Rs 93,984 cr in 2006-07. Cumulative

Assets under management rose to Rs 5,05,152 in March 2008 from Rs

3,26,292 in March2007.

Institutional Structure of the Indian Stock Market

Market Intermediaries Number of

Intermediaries as on

March 31,2008

Stock exchanges (cash

Market)

19

Stock Exchanges

(Derivative Market)

2

Brokers (Cash Segment) 9487

Corporate Brokers (Cash

Segment)

4183

Sub Brokers (Cash

Segment)

44073

Brokers (Derivatives) 1442

FII 1319

Custodians 15

Depositories 2

Merchant Bankers 155

Bankers to an Issue 50

Underwriters 35

Mutual Funds 40

Stock Trading:-

Traditionally stock trading is done through stock brokers, personally or through

telephones. As number of people trading in stock market increase enormously in

last few years, some issues like location constrains, busy phone lines, miss

communication etc start growing in stock broker offices. Information

technology (Stock Market Software) helps stock brokers in solving these

problems with Online Stock Trading.

Online Stock Market Trading is an internet based stock trading facility. Investor

can trade shares through a website without any manual intervention from Stock

Broker.

In this case these Online Stock Trading companies are

stock broker for the investor. They are registered with one or more Stock

Exchanges. Mostly Online Trading Websites in India trades in BSE and NSE.

Installable software based Stock Trading Terminals.

This trading environment requires software to be installed on investor’s

computer.

This software is provided by the stock broker. This software’s require

high speed internet connection. These kind of trading terminals are use by

high volume intraday equity traders.

Advantages:-

Orders directly send to stock exchanges rather than stock broker.

This makes order execution very fast.

It provide almost each and every information which is required to a

trader on a single screen including stock market charts, live data,

alerts, stock market news etc.

Disadvantages:-

Location constrains - You cannot trade if you are not on the

computer where you have installed trading terminal software.

It requires high speed internet connection.

These trading terminals are not easily available for low volume

share traders.

Web (INTERNET) based trading application

These kind of trading environment doesn't require any additional software

installation. They are like other internet websites which investor can

access from around the world through normal internet connection.Below

are few advantages and disadvantages of Online Stock Market Trading:

Advantages of Online Stock Trading (Website based):-

Real time stock trading without calling or visiting broker's office.

Display real time market watch, historical data’s, graphs etc.

Investment in IPOs, Mutual Funds and Bonds.

Check the trading history; demat account balance and bank account

balance at any time.

Provide online tool like market watch, graphs and

recommendations to do analysis of stocks.

Place offline orders for buying or selling stocks.

Set alert to inform you certain activity on the stock through email

or sms.

Customer service through Email or Chat.

Disadvantages of Online Stock Trading (Website based):-

Website performance - sometime the website is too slow or not

enough user friendly.

Little long learning curve especially for people who don’t know

much about computer and internet.

Religare Enterprises Ltd:-

Religare Enterprises ltd (REL), incorporated in 1984 and promoted by

RANBAXY group, is the holding company of 11 subsidiaries. It is among the

leading integrated financial services group in the country today. Religare is a

diversified financial services group of India offering a multitude of investment

options. Each of its subsidiaries is engaged in a wide spectrum of financial

products and services targeted at retail, high-net worth individuals, corporate

and institutional clients. The services offered by the group include share

broking, financing loans against shares, IPO financing, distribution of

Mutual funds, insurance broking, commodity broking, wealth management,

advisory services, private equity, merchant banking and trading in arts and art

crafts. The major revenue drivers for the company are its retail equity broking

arm Religare Securities and Religare invest, which finances loans against

shares.

The diverse bouquet of financial services which Religare offers can be broadly

clubbed across three key verticals - Retail, Institutional and Wealth spectrums.

The services extend from asset management, Life Insurance, wealth

management to equity broking, commodity broking, investment

banking,lending services, private equity and venture capital. Religare has also

ventured into the alternative investments sphere through its holistic arts

initiative and Film fund. With a view to expand, diversify and introduce

offerings benchmarked against global best practices, Religare operates in the

life insurance space under 'AEGON Religare Life Insurance Company Limited'

and wealth management under the brand name 'Religare Macquarie Private

Wealth'.(www.religare.in). Religare has a pan India presence, 1837* locations

across 498* cities and towns. It also currently operates from nine international

locations following its acquisition of London's brokerage & investment firm,

Hichens, Harrison & Co. plc. (Now Religare Hichens, Harrison Plc).

(Graph 4)

Religare (“company”) is an integrated financial services institution

offering a wide range of financial products and services to retail

investors, high net worth individuals and corporate and institutional

clients including equity and commodity broking, online trading,

wealth advisory services, investment banking and insurance broking.

Religare has grown rapidly from what was largely an equity trading

company into a diversified financial services company operating

through its 11 subsidiaries.

As on June 30, 2008, Religare has operations at 1,575 locations across

465 cities and towns and a large management team leading group of

over 9,500 employees.

Recently acquired Hichens, Harrison & Co.

(“Hichens”), one of the oldest broking firms in London, for a sum of GBP

55.5 million.

Acquisition to boost the institutional and investment banking

operations of Religare and extend its geographical reach to

London, South Africa, Argentina, Brazil, Dubai, Qatar, Singapore,

Malaysia and Indonesia.

(Chart 1)

Diversified Integrated Financial Services Platform:-

Recently growth and established business testimony of Religare’s

commitment towards becoming the investment gateway of India.

Diversified product portfolio with individually focused management

teams to create optimum balance and result.

CORPORATE STRUCTURE OF RELIGARE:-

RELIGARE COMMODITIES

LTD

RELIGARE FINVEST LTD

RELIGARE SECURITIES LTD

RELIGARE REALTY LTDRELIGARE

ENTERPRISES LIMITED

RELIGARE INSURANCE

BROKING LTD

Fig 1

Religare Areas of Operation:-

(Table 2)

RELIGARE FINANCE LTD

RELIGARE VENTURE

CAPITAL LTD

RELIGARE CAPITAL MARKET

LTD

RELIGARE WEALTH MANAGEMENT SERVICES

Products & Services

Products & Services:-

Arts Initiative Commodity

Equity

Promoter Groups:-

Fortis Healthcare Limited

Super Religare Laboratories Limited

Religare Wellness

Limited

Religare Technova Limited

Religare expansion as on Q1 FY09:-

Employee strength increased to over 9,500

Pan India presence expanded to 1,575 location in 465 cities across India

Continued focus on expanding network, investment in multiple business

& human resource in new venture of RFL and RIBL

Quarterly Total Revenue recorded at Rs. 2,887.49 mn, EBIDTA at Rs.

1,184.17 mn and Profit after tax at Rs. 36.68 mn

RELIGARE SECURITIES LTD:-

Company Overview

Religare Securities Ltd. (“RSL”) is the wholly owned subsidiary of REL

and a securities firm in India.

Major activities and offerings of the company include equity broking both

offline and online, depository participant services, portfolio management

services and institutional brokerage.

Member of the NSE, BSE, depository participant with NSDL and CDSL,

and SEBI approved portfolio manager.

Businesses under Religare Securities Ltd. include:

Retail Equity Broking

Priority Client Equity Services

Online Investment Portal

Institutional Equity Broking (To be shifted to RCML)

Portfolio Management Services

Depository Services

Empanelment with 81 institutions including 20 mutual funds, 10

insurance companies, 35 banks and 11 FIIs. Has strong institutional

research team covers over 185 companies in 16 sectors.

Aggressive ramp up of equity trading client accounts

with market share increasing to 3.8% in June 2008 from 2.7% in FY07

and online trading market share increased to 8.7% in June 2008 from

7.2% in October, 2007

Received in principal approval from SEBI to act as a sponsor of Asset

Management joint venture with Aegon Received P1 Credit Rating from

CRISIL for its short term debt issuance program for a sum of Rs. 7,000

million.

Religare Securities Limited (RSL) is a leading equity and securities firm

in India. The company currently handles sizeable volumes traded on NSE

and in the realm of online trading and investments it currently holds a

reasonable share of the market. The major activities and offerings of the

company today are Equity broking, Depository Participant Services,

Portfolio Management Services, Institutional Brokerage & Research,

Investment Banking and Corporate Finance.

RSL 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.

INTERNATIONA-L ADVISORY

       PMS

EQUITYAND

DERIVATIVES

       INVEST. BANKING

OFFERINGS OF RELIGARE SECURITY

Product offered by Religare Securities:-

Rally

Race

Equity and Trading:-

Race and Rally are the two products offered by Religare Securities ltd which

come under equity and derivatives.

While Rally deals with offline facilities, Race provides for complete online

package and facility. There is difference between both offline and online modes

of trading. The difference lies on account of its schemes, platforms and facilities

provided. Initially the clients used to go for offline modes of trading, but now

with increasing use of internet online mode has become the preference.

Type of Account:-

R-ACE (Basic) 

It's the basic online trading account provided by Religare. Investor can trade and

access their account information online and over the phone as well. This

account comes with a browser based online trading platform and no additional

software installation needed.

This account also provides Lifetime free DP account with no annual

maintenance charges.

R-ACE Lite (Advanced)

It's the advanced account option for the investor with Religare. This trading

account provides the entire feature of R-ACE (Basic) account. In addition it also

provides real-time streaming stock quotes and alerts. This trading platform is

also browser based and no software installation is needed.

R-ACE Pro (Professional)

As the name indicates this account is for high volume traders. Along with the

features from above 2 accounts, this account also comes with a Trading

Terminal, software which needs to install on your computer. This terminal

directly connects the investor to stock market and having all industry standard

Trading terminal features including technical charting (intra-day and EOD),

multiple watch list, advanced hot-key functions for faster trading, derivative

chains, futures & options calculator. As in basic and advance account, trading is

available online through internet and offline though phone.

Brokerage and Account opening fees:

Religare offers three kinds of accounts as above. Below are detail about fees

and activation charges for each account:

1. R-ACE

Account activation charges Rs.299/-.

2. R-ACELite

Account activation charges Rs.499/-..

3. R-ACEPro

Account activation charges Rs.999/-.

4. All the account comes with free annual maintenance charge.

5. All account comes with free DP account.

6. Brokerage at Religare:-

On the basis of volume and frequency of trading, Religare provide

different options for brokerages. On the broader way they divided into

three categories:

o Classic Account:- Intraday brokerage varies from 0.3% to

0.5%. Delivery brokerage varies from 0.30% to 0.50%.

o Freedom Account: - In this payment scheme, investor has to

pay a fix amount in advance for Annual Subscription (Rs 4000).

This one time payment enable account holder to trade for Rs.

3, 00,000 intraday & derivative trading and Rs. 40,000 of delivery

based trading for zero brokerage.

o Trump Account:-It has two payment options:-

1. Trump Plus has annual subscription fees of Rs 2,500, Brokerage

on Delivery Trades of 0.25% and Brokerage on Intraday Trades &

F&O Trades of 0.025%.

2. Trump Super has annual subscription fees of Rs. 15,000,

Brokerage on Delivery Trades of 0.15% and Brokerage on Intraday

Trades & F&O Trades of 0.015%.

Advantages of Religare:-

Religare gives interest on unutilized cash when investor is waiting to

make next trade or online investment.

Religare Allow their investor to trade without having

to worry about cash margin. Investor can get exposure (on cash segment)

as high as 20 times for intraday trades.

They provide intraday reports and historical charting.

Lifetime free DP account.

Varity of fee structure to fulfill need of different type of investors.

Equity Broking and Online Trading:-

Equity client base of over 4.6 lacks, recorded an increase of more than

11% in last quarter

Total Equity brokerage of Rs. 749 mm for Q1 FY 09

Equity market share increased from 3.46% to 3.84% in last quarter

Online client base of over 78,500 clients, recorded an increase of 20% in

last quarter.

Online brokerage for the quarter accounted for Rs. 32 mm

Increased Client Coverage:-

(Graphs-5)

(Graphs- 6)

Increased Online Trading and Portfolio Management Client

(Graphs-7)

(Graphs- 8)

Increased Income from Various Business Lines

(Graphs-8 & 9)

(Graphs- 9)

(Graphs- 10)

SWOT ANALYSIS

STRENGTHS WEAKNESS

Strong corporate relationship with its promoter RANBAXY.

Collaborations with highly reputed international companies AEGON and MACQUERIE.

Strong network throughout India, strong presence in WEST, NORTH and SOUTH

No satisfactory Brand awareness and no Brand recall value

In case of intraday the order is automatically squared off at 3.10 pm

Problem in linking Religare demat account with the five banks HDFC, CITIBANK, AXIS, ICICI, INDUS Bank.

OPPOURTUNITIES THREATS

Even the strong players in the market holds 6% of market share, so there is a good potential for growth.

The growing interest of people in the stock market.

Indian stock market story going strong.

Competition from major players like ICICI DIRECT, SHAREKHAN, INDIA BULLS, KOTAK etc.

The downfall in the stock market

The Competitor

The existing major players in the stock broking industry

besides Religare Securities ltd. are:

1. ICICI DIRECT

2. INDIA BULLS

3. SHARE KHAN

4. INDIA INFO LINE

5. KOTAK

6. RELIANCE MONEY

1. ICICI DIRECT:-

ICICI Direct (or ICICIDirect.com) is stock trading company of ICICI Bank.

Along with stock trading and trading in derivatives in BSE and NSE, it also

provides facility to invest in IPOs, Mutual Funds and Bonds. Trading is

available in BSE and NSE.

Trade In: BSE and NSE

Type of Account:-

ICICI Direct offers 3 different online trading platforms to its customers:

1. Share Trading Account:-

Share Trading Account by ICICI Direct is primarily for buying and

selling stocks in NSE and BSE. This account allows Cash Trading,

Margin Trading, Margin PLUS Trading, Spot Trading, Buy Today Sell

Tomorrow and Call and Trade on phone.

www.icicidirect.com website is the primary trading platform for this trading

account. They also provide installable application terminal based application for

high volume trader.

2. Wise Investment Account:-

Along with stock trading and IPO investing in BSE and NSE, Wise Investment

account also provide options to invest in Mutual Funds and Bonds online.

Online Mutual funds investment allows investor to invest on-line in around 19

Mutual Fund companies. ICICI Direct offers various options while investing in

Mutual Funds like Purchase Mutual Fund, Redemption and switch between

different schemes, Systematic Investment plans, Systematic withdrawal plan

and transferring existing Mutual Funds in to electronic mode. This account also

provides facility to invest in Government of India Bonds and ICICI Bank Tax

Saving Bonds. ICICIDirect.com website is the primary tool to invest in Mutual

Funds, IPOs, Bonds and stock trading.

3. Active Trader Account:-

Active Trader account gives more personalized investment options to the

investors. It allows investor to use online and offline stock trading. It also

provides with independent market expertise and support through a dedicated

Relationship Manager from ICICI. Active Trader also provides commodity

trading.

Brokerage and fees:-

1. Account opening fees : Rs 750/- (One time non-refundable)

2. Brokerage: www. icicidirect.com brokerages vary on volume of trade and

inclusive of demat transaction charges, service taxes and courier charges

for contract notes. It ranges from 0.1% to 0.15% for margin trades, 0.2%

to 0.425% for squared off trades and 0.4% to 0.85% on delivery trades.

Advantages of ICICI Direct:-

1. 3-in-1 account integrates your banking, broking and demat accounts. All

accounts are from ICICI and very well integrated. This feature makes

ICICI the most interesting player in online trading facility. There is

absolutely no manual interfere require. This is truly online trading

environment.

2. Unlike most of the online trading companies in

India which require transferring money to the broker's pool or towards

deposits, at ICICI Direct you clown demat and bank accounts through

ICICIdirect.com. Money from selling stock is available in ICICI bank

account as soon as the ICICI Direct receives it.

3. Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal

Savings Schemes all from one website. General Insurance is also

available from ICICI Lombard.

4. Trading is available in both BSE and NSE.

Disadvantages of ICICI Direct:-

1. Getting access to www.icicidirect.com website during market session can

be frustrating.

2. ICICI Direct brokerage is high and not negotiable.

3. Not all stocks are available under Margin Plus.

INDIABULLS

An India bull is India's leading Financial Services and Real

Estate Company having presence over 414 locations in more than 124 cities.

India bulls Financial Services Ltd is listed on the National Stock Exchange,

Bombay Stock Exchange, Luxembourg Stock Exchange and London Stock

Exchange.

Type of Account:-

1. India bulls Equity Trading Account

India bulls Equity Trading Account is standard Online trading account from

India bulls and along with online trading it also provides priority telephone

access that gives you direct access to your Relationship Manager and full access

to 'India bulls Equity Analysis'.

Application Trading Terminal (Need Installation)

2. Power India bulls:-

Power India bulls trading terminal is the most advanced new generation trading

platform with great speed. This trading terminal is built in JAVA.

Power India bulls is extremely reach in features including Live Streaming

Quotes, Fast Order Entry and execution, Tic by Tic Live Charts, Technical

Analysis, Live News and Alerts, Extensive Reports for Real-time Accounting.

Brokerage and fees:

1. Account opening fees : Rs 1200/- (One time non-

refundable) as below:

250/- Equity Trading Account opening charge

200/- Demat Account opening charge

750/- Software changes

Advantages of India bulls Equity Trading Account:-

Brokerage is less compare to other online trading companies.

Provide trading terminal 'power bulls', a java based software. It's very fast

in terms of speed and execution.

SHAREKHAN

Share khan is online stock trading company of SSKI Group, provider of India-

based investment banking and corporate finance service. Share Khan is one of

the largest stock broking houses in the country. S.S. Kantilal Ishwarlal

Securities Limited (SSKI) has been among India’s leading broking houses for

more than a century.

Share khan's equity related services include trade execution on BSE, NSE,

Derivatives, commodities, depository services, online trading and investment

advice. Trading is available in BSE and NSE. Along with Sharekhan.com

website, Share Khan has around 510 offices (share shops)

in 170 cities around the country.

Share khan has one of the best states of art web portal

providing fundamental and statistical information across

equity, mutual funds and IPOs. You can surf across 5,500

companies for in-depth information, details about more than 1,500 mutual fund

schemes and IPO data. You can also access other market related details such as

board meetings, result announcements, FII transactions, buying/selling by

mutual funds and much more.

Trade In: BSE and NSE

Type of Account:-

1. Share Khan Classic account

Allow investor to buy and sell stocks online along with the following features

like multiple watch lists, Integrated Banking, demat and digital contracts, Real-

time portfolio tracking with price alerts and Instant credit & transfer.

a. Online trading account for investing in Equities and Derivatives

b. Free trading through Phone (Dial-n-Trade)

I. Two dedicated numbers for placing your orders with your cell

phone or landline.

II. Automatic funds transfer with phone banking (for Citibank and

HDFC bank customers)

III. Simple and Secure Interactive Voice Response based system for

authentication

IV. get the trusted, professional advice of our tele brokers

V. After hours order placement facility between 8.00 am and 9.30 am

c. Integration of: Online trading + Bank + Demat account

d. Instant cash transfer facility against purchase & sale of shares

e. IPO investments

f. Instant order and trade confirmations by e-mail

g. Single screen interface for cash and derivatives

2. Share Khan Speed Trade account:-

This accounts for active traders who trade frequently during the day's trading

session. Following are few popular features of Speed Trade account.

1. Single screen interface for cash and derivatives

2. Real-time streaming quotes with Instant order Execution & Confirmation

3. Hot keys similar to a traditional broker terminal

4. Alerts and reminders

5. Back-up facility to place trades on Direct Phone lines

Brokerage:

Some stock trading companies charge direct percentage while others charge a

fixed amount per Rs 100. Share khan charges 0.5% for inter day shares and

0.1% for intra day or you could say Share khan charges 50 paisa per Rs 100.

Advantages of Share khan:

Online trading is very user friendly and one doesn't need any software to

access.

They provide good quality of services like daily SMS alerts, mail alerts,

stock recommendations etc.

Share khan has ability to transfer funds from most banks. Unlike ICICI

Direct, HDFC Sec, etc., so investor not really needs to open an account

with a particular bank as it can establish link with most modern banks.

Disadvantages of Share Khan:

They charge minimum brokerage of 10 paisa per

stock would not let you trade stocks below 20 Rs. (If you trade, you will

loose majority of your money in brokerage).

Lots of hidden rules and charges.

They do not provide facility to book limit order trades during after-hours.

Classic account holders cannot trade commodities.\

Cannot purchase mutual funds online.

RESEARCH METHODOLOGY

DESCRIPTIVE RESEARCH DESIGN:-

The research design adopted in this study is DESCRIPTIVE RESEARCH

DESIGN. A descriptive research design is the one which is description of the

state of affairs as it exists at present. It includes survey and fact finding

enquiries of different kinds. The researcher has no control over the variables.

The researcher used this research design to find out the respondents attitude and

opinion about ULIP policies offered.

SAMPLING DESIGN:-

A sample design is a definite plan for obtaining a sample from a given

population. It refers to the techniques or procedures the researcher would adopt

in selecting items for the sample.

CONVENIENCE SAMPLING:-

The researcher adopted convenience sampling. It is the non probability

sampling is that sampling procedures does not any basis for estimating the

probability that each item in the population has of included in the sample. The

researcher selects the people according to their convenient.

SAMPLE SIZE:-

A sample of 50 people was taken for the survey. The required data collected

through questionnaire.

SAMPLE DESIGN:-

DETAILS OF THE SURVEY CONDUCTED

Sample Size 50

Target Population 20-30 years

30-40 years

40-50 years

above 50 years

Location

Krishna Nagar,

Maholi Road,

Dampier Nagar,

Bank Colony.

Type of questionnaire Structured

No. of Questions involved 12

DATA COLLECTION:-

The information required for our project was collect mainly from the primary

sources and even from secondary sources. The primary source consists of the

data analyzed from questionnaire and interaction with the user at that time only.

And internet is used as secondary source.

DATA COLLECTION METHOD:-

Data is collected through questionnaire schedule method. It means the

investigators are trained to collect the information required for an enquiry

through schedule. The trained investigators meet the people concerned and fill

up the schedules with the information supplied by them.

Limitations:

Time limitation

Research has done only in Mathura.

Companies did not disclose their secrets data and strategies.

Possibility of Error in data collection.

Possibility of Error in analysis of data due to small sample size.

ANALYSIS AND INTERPRETATION:-

1. How much income are you able to save or invest?

a. 0 - 10% b. 10 - 20%

c. 20 – 30% d. 30 – 40%

e. others

0-10%, 8

10-20%, 1920-30%, 11

30-40%, 9others, 3

0-10%

10-20%

20-30%

30-40%

others

ANALYSIS:

Among the 50 questionnaires filled, it was clear that among them maximum

people invest in the category of 10-20%. Thus Religare has the opportunity to

capture this segment. But people are not aware of the services so here Religare

has to work in this area.

2. You invest in which of the following financial instruments?

(a) Securities

(b) Mutual fund

(c) Commodities

(d) Insurance

(e) Other Instruments

18

15

7

4

6

SecuritiesInsuranceMutual FundsCommoditiesOther Instruments

ANALYSIS:

The above observation speaks about the financial instruments in which the

people invest; most of the people invest in the securities through share market

and then invest in the insurance. Thus more focus should be made on securities

so that company has the maximum investment. This would ultimately increase

the profits.

3. Do you invest/interested in stock market?

(a) YES

(b) NO

yes58%

no42%

yes

no

ANALYSIS:

It can be seen that among the whole population around 58% people either invest

in stock market or they are actually interested, but don’t have a good knowledge

about it. So these people can actually become Religare’s target market but

religare has to provide them the better services and brokerage plans and also,

providing them the initial platform of online trading.

4. Do you have a demat account?

(a) YES

(b) NO

ANALYSIS:

Among 50 respondents 32 actually have a demat account and are aware of the

dealings in stock trading. The rest 18 are still in the other category. So strategies

should be made to convert these people in to our potential customers.

5. If yes, which type of demat account do you have?

(a) Online

(b) Offline

yes, 32

no, 18

yes

no

ANALYSIS:

Among 50 respondents 32 had a demat account. Of these 32, 21 have their

demat account offline and rest 11 have their demat accounts online. As online

broking is still at a premature stage in India. Thus more and more awareness

should be made about the online broking services.

6. In which company you have your demat account?

(a) India Info line (b) India Bulls (c) Kotak

(d) Religare (e) ICICI direct (f) Share khan

online, 11

offline, 21

online

offline

(g) Others

ANALYSIS:

Among these 32 people most of them have their demat account with Share

Khan and India bulls. Thus these two are Religare’s biggest competitors. Also

ICICIDirect gives a good competition to Religare. These brands have a good

brand recall as compared to Religare.

7. Do you trade in Futures and Options?

(a) Yes

(b) No

37%

63%

Yes No

ANALYSIS:

It can be seen that among the population who invest in stock market, around

37% people either trade in future or they trade in option. So these people can

actually become Religare’s target market as they generate heavy brokerage for

the company. Religare has to provide them the better services and brokerage

plans and also, providing them the initial platform of online trading.

8. How often you trade in the stock market?

(a) Everyday (b) 2-3 Days a week

(c) 12-18 days a month (d) 2-3 days a month

64%

19%

11%6%

Everyday2-3 Days a week12-18 days a month2-3 days a month

ANALYSIS:

The above observation speaks about the; most of the people do trading every

day. Thus more focus should be made on the traders which are every day

traders. The company should also focus on the others also because they are the

traders for the long term investment and also, provide heavy brokerage to the

company.

9. Do you pay AMC (Annual Maintenance Charge)?

(a) Yes

(b) No

83%

17%

Yes No

ANALYSIS:

A good percentage of people give the annual maintenance charge to the

company. Religare can have the advantage of attracting their customers as they

don’t charge the AMC on its brokerage plans and which will work to generate

sales.

10. How much Brokerage do you pay on Intraday?

(a) (0.01 – 0.02) % (b) (0.02 – 0.03) %

(c) (0.03 – 0.04) % (d) (0.04 – 0.05) %

(e) 0.05 % or more

3%

26%

26%

18%

27%

(0.01 – 0.02) %(0.02 – 0.03) %(0.03 – 0.04) %(0.04 – 0.05) %0.05 % or more

ANALYSIS:

It can be seen that the companies are charging brokerage according to their own

means. So, the companies are creating biasness between the customers. Even if

the customers portfolio is the same then also the brokerage may vary from the

person to person. So, religare has the best feature of providing less brokerage

and according to the customers wants.

 11. How much Brokerage do you pay on Delivery?

(a) (0.1 – 0.2) % (b) (0.2 – 0.3) %

(c) (0.3 – 0.4) % (d) (0.4 – 0.5) %

(e) 0.5 % or more

1%24%

31%

19%

25%

(0.01 – 0.02) %(0.02 – 0.03) %(0.03 – 0.04) %(0.04 – 0.05) %0.05 % or more

ANALYSIS:

Here also you can see that the long term investors have to give brokerage

according to what the company wants. So, here also the biasness is created in

the mind of the customers. So, Religare got a great opportunity to attract the

customers by giving the brokerage plans according to what the customer want.

12. Are they getting the good services?

(a) Yes

(b) No

64%

36%

Yes No

ANALYSIS:

It can be seen from the observations that there are customers who are not

satisfied by the services given by the brokerage companies can be converted by

providing better services to them. Sometimes even if the customers have the

same or more investment then also, he is getting fewer services than the other

one. So, Religare can convert them by providing better services to them.

RECOMMENDATIONS:-

On the basis of these findings and analysis, It has can be surely said that in

stock broking industry, differentiation can become the key to higher revenues.

Better service, straight through processing(STP), immediate execution, portfolio

services, investment advisors and telephone call centers or branch investment

offices are needed to retain customers and to increase the revenue base. As more

number of people will get comfortable with internet/technology, broking

(especially online broking) will have a completely new meaning with more

fringes coming into the picture and more firms will offer umbrella services to

their clients. Thus more of strategies should be undertaken

Providing better plans and schemes than our competitors like Share

khan, India bulls, and ICICI direct are providing in terms of

brokerage and subscription.

Formulation of more corporate schemes for employees of

organizations falling under Religare’s corporate category.

Drafting a website which is both professional and user friendly

Associating Religare with Ranbaxy to make it a power brand.

Taking Religare from the brand recognition stage to brand

insistence stage.

Religare should make its brokerage structure more flexible to give

a good competition to the investors

Some more collaboration with international firms and increasing its

outlets not only in India but also outside the world

Also, to attract the NRIs so, those to increase its share in the stock

exchanges as they provide the largest share in terms of the

investment.

Annexure:-

QUESTIONNAIRE:-

NAME:

GENDER: AGE:

OCCUPATION: ANNUAL INCOME:

1. How much income are you able to save or invest?

(a) 0 - 10% (b) 10 - 20%

(c) 20 – 30% (d) 30 – 40%

(e) Others

2. You invest in which of the following financial instruments?

(a) Securities (b) Mutual fund

(c) Commodities (d) Insurance

(e) Other Instruments

3. Do you invest/interested in stock market?

(a) YES (b) NO

4. Do you have a demat account?

(a) YES (b) NO

5. If yes, which type of demat account do you have?

(a) Online (b) Offline

6. In which company you have your demat account?

(a) India Info line (b) India Bulls

(c) Kotak (d) Religare

(e) ICICI direct (f) Share khan

(g) Others

7. Do you trade in Futures and Options?

(a) YES (b) NO

8. How often you trade in the stock market

(a) Everyday (b) 2-3 Days a week

(c) 12-18 days a month (d) 2-3 days a month

9. Do you pay AMC (Annual Maintenance Charge)?

(a) Yes (b) No

10. How much Brokerage do you pay on Intraday?

(a) (0.01 – 0.02) % (b) (0.02 – 0.03) %

(c) (0.03 – 0.04) % (d) (0.04 – 0.05) %

(e) 0.05 % or more

11. How much Brokerage do you pay on Delivery?

(a) (0.1 – 0.2) % (b) (0.2 – 0.3) %

(c) (0.3 – 0.4) % (d) (0.4 – 0.5) %

(e) 0.5 % or more

12. Are they getting the good services?

(a) Yes (b) No

REFERENCES:-

http://www.religareonline.com

http://religaresecurities.com/trade.asp

http://www.hinduonnet.com/businessline/iw/2000/09/03/stories/

0703g051 .htm

http://www.traderji.com/

http://www.ShareKhan.com

http://www.indiabulls.com

http://www.icicidirect.com

http://www.chittorgarh.com/newportal/online-stock-brokers-list.asp

www.financialtimes.net

http://www.religare.in/

http://www.milestonereligare.com/

Newspaper:-

The Economic Times