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SALES AND MARKETING STUDY OF BROKERAGE STRUCTURE IN REFERENCE OF OTHER BROKING HOUSE

SUMMER INTERNSHIP PROJECT REPORT2009-2011

Submitted in Partial Fulfillment for the Award of DegreePOST GRADUATE DIPLOMA IN MANAGEMENT

Faculty guide: - Corporate guide:- Dr. Gaurav Aggrawal Mr. Mrityunjay Kumar Lloyd Business School Reliance money Bhagalpur

LLOYD BUSINESS SCHOOLPlot No – 11, Knowledge Park – II

Greater Noida, U.P

Submitted by: - Shahid RazaPGDM – 4 th Trimester

FACULTY GUIDE CERTIFICATE

This is to certify that Shahid Raza , a student of Lloyd

Business School, Greater Noida pursuing his PGDM (Finance & Marketing)

has worked under my guidance and supervision on his Work entitled “SALES

AND MARKETING STUDY OF BROKERAGE STRUCTURE IN

REFERENCE OF OTHER BROKING HOUSE” . To the best of my knowledge

this is an original piece of work.

Dr. Gaurav AggrawalFaculty Finance

Lloyd Business School

I

DECLARATION

I Shahid Raza do hereby declare that the project report entitled “SALES

AND MARKETING STUDY OF BROKERAGE STRUCTURE IN

REFERENCE OF OTHER BROKING HOUSE” is the result of my own efforts.

I am submitting my project report to the placement cell of my college and I

have never submitted this project report anywhere else.

Shahid RazaPGDM – 4th Trimester

09/LBS/UP/PGDM/FT/43Lloyd Business SchoolGreater Noida, U.P

II

ACKNOWLEDGEMENT

The credit of this project report goes to many people. Right from the experienced staff of Reliance Money, Bhagalpur to the staff of Lloyd Business School, Greater Noida with whose co-operation and guidance I have successfully completed my summer internship programme.

I take this opportunity to express my deep gratitude to all the employees of, Reliance Money, Bhagalpur. Also I am indebted for the rich guidance, knowledge and suggestions provided by my guide, Dr. Gaurav Aggrawal who took sincere efforts and illustrated the Concept of Financial Products, with their vast knowledge in the field, which helped me in carrying out my internship.

I am gratified to Dr. Gaurav Aggrawal for their earnest co-ordination owing to which, I had the leg-up of undertaking the internship at the prominent organization, Reliance Money.

Last but not least, I also thank all those people whom I met in the industry during my internship and helped me to accomplish my assignments in the most efficient and effective manner.

Date: 1st Sept 2010Place: Bhagalpur Shahid Raza

III

EXECUTIVE SUMMARY

The project work is pursued as a part of PGDM (Finance & Marketing) at Lloyd Business School, Greater Noida . It is undertaken as a traineeship at Reliance Money Ltd. The project is done under expert supervision and guidance of Dr. Gaurav Aggrawal (Faculty of Finance) and Mr. Mrityunjay Kumar (Relationship Manager, Reliance Money, Bhagalpur).The Project is about the study of marketing and sales of financial products and also the efforts done to make improvements in the customer acquisition process for better results.

At RELIANCE MONEY , initially the trainees were imparted process and product knowledge. They were given sufficient time to know about the products. They had to work with the sales representatives of the Distributor and think of ways of improving the sales and distribution channel and implementing them. The main aim was to increase sales and for this different ways were tried and implemented.

They were provided with database and had to make cold calls from the data. Company activity was also one of the major sources for generating business. Initially they even accompanied sales representatives to the clients place. Main objective was to know the need of the customer and how to fulfill that in the best way.

The project dealt with :

1. Trading2. Equities3. Derivatives4. Commodities5. Demat selling

Thus it gave trainees the opportunity to learn about all the products and with the range of products. Reliance money offered it

IV

made the task a bit easier as we could fulfill the need of the customer in a better way.

My task was divided in 3 phase

1. Product knowledge: This phase includes all information about the financial products provided by the company like equities, Derivatives and commodities.

2. Trading: This phase includes all information about online trading process and brokerage details.

3. Demat account opening: This phase includes a task to convince the customers to open a demat account for online trading.

With the end of 8 weeks every phase was completed and it gave us the real experience of retail as well as corporate world.

V

CONTENT

Chapter no. Title Page no.

Chapter 1 Introduction

About Industry

About Reliance Capital

About Reliance Money

Products of Reliance Money

About The Share trading A/c, Brokrage and facilities of Reliance Money.

Working of Reliance Money & its hierarchy.

About Competitors

SWOT Analysis

Trading portal & Demat account

How Reliance Money scored over

Others ?

Corporate Social Responsibilities

2-3

4-6

7

8-9

10-14

15-16

17-34

35

35-39

40

42-46

Chapter 2 Research Methodology & Objectives….

Objectives

Methodology

My responsibilities

48

49-54

54-55

Chapter 3 Limitations, Learnings & Findings

Limitations & Learnings

Findings

57

57-61

VI

Chapter 4 Recommendations & Conclusion

Recommendations

Conclusion

51-54

63

64-65

Chapter 5 Questionnaire

Bibliography

67-68

69

VII

Chapter1Introduction

INDUSTRY PROFILE”RELIANCE-ANIL DHIRUBHAI AMBANI GROUP

FounderDhirubhai H. Ambani

RELIANCE GROUP OF COMPANIES

Growth through Vision"Growth has no limit at Reliance. I

keep revising my vision.Only when you can dream it, you

can do it."

The Reliance – Anil Dhirubhai Ambani Group is among India’s top three private sector business houses on all major financial parameters, with a market capitalisation of Rs100,000 crore (US$ 22 billion), net assets in excess of Rs 31,500 crore (US$ 7

billion),and net worth to the tune of Rs 27,500 crore (US$ 6 billion).

Across different companies, the group has a customer base of over 50 million, the largest in India, and a shareholder base of over 8 million, among the largest in the world.

Through its products and services, the Reliance - ADA Group touches the life of 1 in 10Indians every single day. It has a business presence that extends to over 4,500 towns and 300,000 villages in India, and 5 continents across the world.

The interests of the Group range from communications (Reliance Communications) and financial services (Reliance Capital Ltd), to generation, transmission and distribution of power (Reliance Energy), infrastructure and entertainment.

INDUSTRY SRTUCTURE

COMPANY PROFILE

Reliance Capital LtdPart of Reliance - Anil Dhirubhai Ambani Group.

Reliance Capital is one of India’s leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies.

In terms of net worth. Reliance Capital has interests in asset management and mutual funds, life and general insurance, private equity and proprietary investments, stock broking and other activities in financial services.

RCL is registered as a depository participant with National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL) under the Securities and ExchangeBoard of India (Depositories and Participants) Regulations, 1996.

RCL has sponsored the Reliance Mutual Fund within the framework of the Securities and Exchange Board of India (Mutual Fund) Regulations, 1996.

RCL primarily focuses on funding projects in the infrastructure sector and supports the growth of its subsidiary companies, Reliance Capital Asset Management Limited, Reliance Capital Trustee Co. Limited, Reliance General Insurance Company Limited and Reliance Life Insurance Company Limited.

As of March 31, 2005, the company’s investment in infrastructure projects stood at Rs. 1071 Crores. The investment portfolio of RCL is structured in a way that realizes the highest post-tax return on its investments.

BOARD OF DIRECTORS

Amitabh Jhunjhunwala, Vice-Chairman

Amitabh Jhunjhunwala, an FCA, has over 23 years of experience in finance and the capital markets. Amitabh is also the Director of Reliance Capital Asset Management Limited.

Shri C. P. Jain

Shri C.P. Jain, aged 60 years, is the former Chairman andManaging Director of National Thermal Power Corporation (NTPC).

Rajendra Chitale, Independent Director

Rajendra P. Chitale, an eminent Chartered Accountant, is the Managing Partner of M/s M. P.Chitale & Co. He is a Director on Boards of the National Stock Exchange of India (NSE), Asset Reconstruction Company (India) Ltd, Hinduja TMT Ltd and Gujarat Ambuja Cements Ltd. He is also a member of the Advisory Group on Derivatives and the Takeover Panel, Securities and Exchange Board of India, as well as the Company Law Advisory Committee of the Government of India.He has also served on the boards of Life Insurance Corporation of India, Unit Trust of India, SBI Capital Markets Ltd and Small Industries Development Bank of India..

Reliance Money

“Reliance Money (Distribution House)”

The official launch of Reliance Money was announced on 3rd May 2007.

Reliance Money is a group company of Reliance Capital; One of India's leading and fastest growing private sector financial services companies.

Ranking among the top 3 private sector financial services and banking companies, in terms of net worth.

Reliance Capital is a part of the Reliance Anil Dhirubhai Ambani Group.

Reliance Money is a comprehensive electronic transaction platform offering a wide range of asset classes.

Its endeavor is to change the way India transacts in financial markets and avails financial services.

Reliance Money currently deals in the following financial products:

1. Equities /IPO’s / Forex / Commodities.

2. Mutual funds (every Asset Management company in market).

3. Life Insurance (RELIANCE, HDFC, TATA, SBI & LIC).

4. General Insurance (RELIANCE, NEW INDIA, IFFCO TOKYO ROYALE SUNDARAM).

5. Credit Cards.

6. Loans.

7. Portfolio Investments.

8. Money Transfer

9. Offshore investments

RELIANCE MONEY SHARE TRADING ACCOUNT

Reliance Money unlike other brokering houses has introduced a new prepaid system of brokerage for the share trading in which it provides the lowest form of brokerage charged from an investor.

Reliance money has introduced three prepaid schemes for the stock market investors which work in the following way:

FOR LARGE INVESTORS

Limit Card

ValidityWhichever is Earlier

ValidityWhichever is Earlier

Turnover Limit

Turnover Limit

TimeValidity

Turnover

Validity

Intra Day

Turnover

Delivery

Turnover

500 2 Months

1 Cr. 90 Lac 10 Lac

1350 6 Months

3 Cr. 2.7 Cr. 30 Lac

2500 12 Months

6 Cr. 5.4 Cr. 60 Lac

For small investors :

Reliance had an under scheme of Rs.500 in which-

Time validity is of one year.

Turnover limit is Rs. 5 Lacs (Either you can do Intraday or Delivery, no fix ratio).

Margin of 5 times on Intraday and no Margin on Delivery( Valid for all the four schemes).

Apart from this the A/c opening charges are Rs. 750 one time and four A/c’s namely Trading, Demat, Forex and Commodity are provided to the investor.

Reliance Money is offering a brokerage charge of 45 paisa on every Rs 100 worth of delivery-based trades, and 5 paisa on non-delivery trades, which is the lowest in the industry so far.

Currently, the average brokerage charge for delivery-based trades is anywhere between 15 paisa and 25 paisa for every trade worth Rs 100, while for non- delivery trades it is around 3-5 paisa.

Following are also the main features of this share trading account provided by Reliance money:-

1. Flexibility to access reliance money services in multiple ways through Internet,Transaction kiosks, Call and transact or seek assistance through Business partners.

2. This is a safeguarded account as reliance money provides an electronic token that flashes a unique security number in every thirty two seconds This number works as a third level password (including the login ID and Password) keeping the account sage from any unauthorized access.

2. Flexibility to transact in Equity, Equity and commodity Derivatives, Offshore investments, mutual funds, IPO’s, Life insurance and General Insurance either through online or through channel partners.

3. With the help of this A/c investors can access to their banking, trading and Demat accounts without the hassle of writing cheques.Reliance money had tied up with UTI , HDFC and IDBI bank to link this share trading account for the investors.

4. Annual maintenance charge of just 50 /- per annum and free on mobile Tips.These were some of the features of “Reliance money” share trading account.

A customer can do the share trading through trading kiosks installed by Reliance Money, through net, through business associates of R-Money.

Document Photocopies Required for Demat Account opening :-

(A) Three passport size photographs for first holder (selfattested).

(B) One passport size photograph if second holder.

(C) One passport size photograph if third holder.

(D) For identification Proof- Voter ID Card/ DrivingLicense/ Passport/ PAN Card (Compulsory) any one.

(E) For residential proof:- Bank statement/ Voter ID Card/Ration Card/ Driving License/ Passport/ Telephone orElectricity Bill statement (any one).

(F) One cancelled cheque leaf (For MICR No. record) if hehad account in any of three banks.

(G) Later Bank Statement/ Front page of passbook(Showing Name, Address, A/c No.)

(H) Cheque in favour of ‘Reliance Money Limited;(Rs.750+ prepaid card of customer choice).

Reliance Money is allowing trading in four ways:

1) Online

2) Offline( Through Franchise, they take Rs.12 per script)

3) Call center

4) Trading Kiosk (Charging .50 paisa per minut).

Working of Reliance money

At the Macro Level

HIERARCHY IN RELIANCE MONEY

EXECUTIVE DIRECTOR

Mr. Vikrant Gugnani

CHIEF EXECUTIVE OFFICER

Mr. Kapil Wali

HEAD OF SALES

Mr. Anshul Arzare

ZONAL HEAD

Mr. Manav Singh

REGIONAL HEAD

Mr. Arvind singh

BRANCH HEAD

Mr. Rajesh chaubey

CSE / CM / RM

COMPETITORS

Sharekhan Services-: Sharekhan, one of India's leading brokerage houses, is the retail arm of SSKI. With over 240 share shops in 110 cities, and India's premier online trading portal www.sharekhan.com, our customers enjoy multi-channel access to the stock markets.

SHARE KHAN

• Sharekhan is the retail broking arm of SSKI Securities Pvt Ltd. SSKI owns 56% in sharekhan, balance ownership is HSBC, First Caryle, and Intel Pacific.

• Into broking since 80 years.

• Focused on providing equity solutions to every segment.

• Largest ground network of 210 Branded Share shops in 90 Cities.

Freedom from paperwork

1. Instant credit and money transfer.

2. Trade from any net enabled PC.

3. After hour orders.

4. Online orders on the phone.

5. Timely advice and research reports.

6. Real-time Portfolio tracking.

7. Information and Price alert.

Share khan online Trading Interfaces

The customer can choose the online trading interface that meets his requirement based on his trading habits and preferences.

CLASSIC / APPLETThe website is meant for customers who Invests in Equities.

SPEEDTRADE EXE BasedThe speed trade is meant for customers who trade in Equities.

DIAL-N-TRADE – Toll FreeThe DNT is a value added services meant for all customers who want to transact but are not online.

Online Account Types

• Classic Account / Applet : Investor in equities.

• SpeedTrade: Trader in equities & derivatives.

Individual Client:

Demat A/c + Trading A/c opening charges:-There is two type of account-

(a) Classic A/c opening charges- Rs 750/-.

(b) Speed trade A/c opening charges- Rs 1000/-.

(Rs 500/- per month of speed trade A/c. If Brokerage is Rs 1500/- of 3 month then RS 500/- will be off and if not then Rs1500/- and brokerage will charged.)

AMC Charges- Rs 300/- per annum.

Brokerage:-

Cash brokerage: - Delivery: 0.50%, Intraday: 0.10% (Negotiable)

(Min. 0.05% on intraday & 0.50% on delivery)Exposure: -4 to10 times (For Intraday)

2 times (For Delivery)F&O Brokerage: - Buy & Sell 0.05% (Negotiable)

Odin Terminal:-

In Classic A/c Terminal is waive based and it shows 5 portfolio. You can see only 26 script (shares) at a time. There is also no any graph is displays and customer have to login in every 10 minute.

In Speed Trade A/c Terminal is internet based/ Software based and customer can see 500 script (shares) at a time.Trading through offline or website. (www.sharekhan.com)

NSE & BSE both are online.

Live applet for watching prices & trading purposes.Share Transfer:

From Sharekhan Demat account to some other company Demat account the charge per script is Rs. 22.

India Info line (5 Paisa.com)

India info line was founded in 1995 and was positioned as a research firm In 2000 e-broking was started under the brand name of 5 paisa.com. Apart from offering online trading in stock market the company offers mutual funds online.

It also acts as a distributor of various financial services i.e. GOI securities, Company Fixed Deposits, Insurance.Limited ground network, present in 20 Cities.

Online Account Types

• Investor Terminal : Investors / Students.

• Trader Terminal : Day Traders / HNI’s

PRICING FOR RETAIL CLIENTS

Investor Terminal

• Account Opening : Rs 500

• Demat 1st Yr : Rs 250• Initial Margin : Rs 2500(Compulsory)• Min Margin Retainable : Rs 1000• Brokerage : Intraday 0.10% each side + ST

Delivery 0.50% each side + ST

PRICING FOR HNI CLIENTS

Trader Terminal

• Account Opening : Rs 500• Demat 1st Yr : Rs 250• Initial Margin : Rs 5000(Compulsory)• Min Margin Retainable : Rs 1000

• Brokerage :

Intraday 0.10% each side + ST

Delivery 0.50% each side + ST

( Negotiable to 0.05% each side & 0.25%)

• Account Access Charges

Monthly Rs 800, adjustable against Brokerage.

Yearly Rs 8000, adjustable against brokerage.

2. Indiabulls

Equity and Derivatives- Ease, Convenience Reliability- It all starts here. Investment services as individual as you are.

Indiabulls Financial Services Ltd. is a public company and listed on the National Stock Exchange, Bombay Stock Exchange, Luxembourg Stock Exchange and London Stock Exchange. The company ranks at 82nd position inthe list of most valuable companies in India has a market capitalization of approx US $ 800 million. The consolidated net worth of the company is approx US $400 million.

Through various types of brokerage accounts, Indiabulls offers the purchase and sale of securities which includes Equity, Derivatives and Commodities Instrument listed on National Stock Exchange of India Ltd. (NSEIL), The Stock Exchange, Mumbai (BSE) and NCDEX.

Features of Power Indiabulls:

Live Streaming Quotes.

Fast Order Entry.

Tic by Tic Live Charts.

Technical Analysis.

Live News and Alerts.

Extensive Reports for Real-time Accounting.

Demat+Trading account opening charges-

For Offline A/c opening- 700/-.

For Online A/c opening- 1450/-.

(An Offline Demat A/c holder can not do online trading).

Online Account Type

• Signature Account : Plain Vanilla Account with focus on Equity Analysis. The equity analysis is a paid service even for A/c holders.

• Power Indiabulls: Account with sophisticated trading tools, lowcommissions and priority access to R.M

CHARGES

Pricing of IB Accounts

Signature Account

• Account Opening : Rs 250• Demat: Rs 200 if POA is signed, No AMC for this DP• Initial Margin : NIL• Brokerage : Negotiable

Power IndiaBulls

• Account Opening : Rs 750• Demat: Rs 200 if POA is signed, No AMC for this DP• Initial Margin : NIL• Brokerage : Negotiable

PAID Research

SCHEME FACILITY

WebBased-1-Month-500: View & Print on website

WebBased-1-Year-6000 View & Print on websitePrintReport-1-Month-750: View & Print on website + 10 Reports Delivered PrintReport-1-Year-9000: View & Print on website + 10 ReportsDelivered

Brokerage-

For intraday trading- .02 - .05%For Delivery trading- 0.25 - 0.50%(Brokerage is negotiable and it based on the volume of client)

Exposure:-

For intraday trading - 5 – 10 times

For delivery trading - 2 times

Funding:-

Interest rate is 19% per month for funding.

Drawback:

For delivery they are providing a limit of 27 days, for squaring-off.

Services:-

1. No SMS alert provide.

2. A trader can find out the information about share market only by to calldealers.

3. Account opening time- One Weak.

4. Online & offline trading facilities are different.

3. ILFS:-

Your world of financial services and India's financial multiplex, IL&FS Investsmart Limited (IIL) is a premier financial service organization providing individuals and corporate with customized financial management solutions.

New Demat Account opening has been stopped by SEBI.

Brokerage:

For Intraday Trading- 0.04%

For Delivery Trading- 0.40%

AMC Charges: Rs 500/-

Exposure:

For Intraday Trader - 4-5 times

For Delivery Trader- 2 times

Services:

Research Report- Free

Trading A/c- Free

Online Services- Free

IPO- Online

Tie up with HDFC Bank.

Kotak Securities Ltd.

Kotak Securities Ltd. is India's leading stock broking house with a market share of around 8%. Kotak Securities Ltd. has been the largest in IPO distribution.

Kotak Securities Ltd is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL), providing dual benefit services wherein the investors can use the brokerage services of the company for executing the transactions and the depository services for settling them.

Kotak Securities Limited manages assets over 2500 crores of Assets under Management (AUM).

Type of account in Kotak Securities Ltd.

If you want to start investing? Open an investing account with Kotak Securities Ltd and begin right away. Whether you are a beginner or an expert trader, Kotak have different accounts to suit your needs:

Kotak Gateway: Ideal if you are just starting out in the equity markets.

Kotak Value: Tailor-made to meet the needs of the experienced investor.

Kotak Privilege Circle: A line up of premier trading services to suit your needs.

Kotak High Trader: Intra-day trading account with Auto-square off that lets you take higher exposure.Kotak Freeway: Trading unleashed! Unlimited trading for a fixed monthly fee.

Online Account Types

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

Free Way : Flat Rs 999/- Cover Charges p.m., 0.03% per transaction

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

Cash Expressway : Spot payment, additional 0.5% charges.

Pricing of Kotak

Account Opening :Rs 500/-

Demat: Rs 22.5 p.m.

Initial Margin : Rs 5000/- (Compulsory)

Min. Margin Retainable : Rs 100/-

Brokerage Slab wise

Higher the volume, lower the brokerage. Even older customers (on 0.25% & 0.40%) have been moved to the slab wise structure.

For intraday trading- .05%.

For Delivery trading- .50%.(Brokerage is negotiable and it based on the volume of client).

Exposure

For intraday trading - 5 – 10 times.

For delivery trading - 2 times.

Funding

Interest rate is 19% per month for funding.

HDFC Securities Ltd.

HDFC securities is a brand brought to you by HDFC Securities Ltd, which has been promoted by the HDFC Bank & HDFC with the objective of providing the diverse customer base of the HDFC Group and other investors a capability to transact in the Stock Exchanges & other financial market transactions.

Online trading for Resident & Non Resident Indians.

Cash-n-Carry on both NSE and BSE.

Day trading on both NSE and BSE.

Trade on Futures & Options on the NSE.

Online IPO's.

Telephone-based Broking (Equity & Derivatives).

The capability to take your orders over the phone

No compulsion for you to change your existing savings and demat accounts to any of our preferred banks

A branch network that is set to quickly grow in all-India coverage, so you’re never too far from customer service that will meet your requirements .State-of-the-art technology backing the safety features in all our transactions.

Online Account Type

HDFC Online Trading A/c: Plain Vanilla Account with focus on 3 in 1advantage.

Pricing of HDFC Account

A/c Opening: Rs 750/-

1000/- for non HDFC Bank customers (AQB)

Brokerage

Trading 0.15%* each side + ST.

Delivery 0.50%** each side + ST.

Demat: Nil, 1st year charges included in Account Opening.

Initial Margin: Rs 5000* Rs 25 Min Brokerage per transaction.

Rs 8 Min brokerage per transaction.

Karvy

Online DEMAT Services

What are the services offered by Depository Participant?

Our Electronic Custodial Services are:

Convert your physical holding into electronic holding (which is called "dematerialisation" of securities).

Keep custody of your holdings in electronic form.

Transfer the shares in the electronic form from one account to another.

Facilitate pledge of your electronic securities.

Give electronic credit of new share allotments such as public issues, bonus, rights etc.

Convert your electronic holding into physical holding (which is called "rematerialisatoin of securities").

Company Profile

History of Religare Securities Ltd.Religare Securities Limited, a Ranbaxy Promoter Group Company, was founded by late Dr. Parvinder Singh (CMD Ranbaxy Laboratories Limited), with the vision of providing integrated financial care driven by the relationship of trust & confidence.

To realize its vision the Religare group provides various financial services which include broking (stocks & commodities), depository participant services, portfolio management services, advisory on mutual fund investments and many more. Working on the philosophy of being “Financial Care Partner”, Religare unlike other traditional broking firms not only executes the trades for the clients but also provides them critical and timely investment advice.

Religare Enterprises Limited (A Ranbaxy Promoter Group Company) through Religare Securities Limited, Religare Finvest Limited, Religare Commodities Limited and Religare Insurance Advisory Services Limited provides integratedfinancial solutions to its corporate, retail and wealth Management clients.

Today, it provides various financial services which include Investment Banking, Corporate Finance, Portfolio Management Services, Equity & Commodity Broking, Insurance and Mutual Funds. Plus, there’s a lot more to come your way.

Religare Today –

An ISO 9001:2000 Company

Member of National Stock Exchange (NSE) since November 1994, first depositbased member of BSE.Depository Participant with- National Securities Depository Limited (NSDL) since July 2000- Central Depository Services (India) Limited (CDSL) since Feb 2003.

- SEBI Approved Portfolio Manager.

Working on the Philosophy of being “Financial Care Partner” Among the leading service provider in Capital Market In a span of less than five years of its retail operations, RSL recorded a healthy growth rate both in business volumes and profitability.

Religare is among the very few stock market intermediaries to having very sound based capital and healthy net worth.

Religare aims to have its footprint all across the country by the end of year so that it may add value to the investing community in the country.

Individual Client:

Demat A/c opening charges:

Two schemes are there:

Classic Plan:

1) R-ACE BasicAccount activation charges Rs.299Minimum margin of Rs.5000 required.Earn interest on cash margin( upto 3%)Trading A/c free for life time.Lifetime free Dp account(No Annual Maintenance charge).

2) R-ACE Life(Advanced)Account activation charges Rs.499Minimum margin of Rs.5000 required.Earn interest on cash margin (upto 3%)Trading A/c free for life time.Lifetime free Dp account(No Annual Maintenance charge)Trading through offline or website. (www.religare.in)NSE & BSE both are onlineLive applet for watching prices & trading purposes.

4) R-ACE PRO(Professional)

Account activation charges Rs.999Minimum margin of Rs.10, 000 required.

Earn interest on cash margin (upto 3%)Trading A/c free for life time.Traders terminal on your desktop(customization)Lifetime free Dp account(No Annual Maintenance charge)Trading through offline or website. (www.religare.in)NSE & BSE both are onlineLive applet for watching prices & trading purposes.

Brokerage:-

Cash brokerage: - Delivery: 0.50%, Intraday: 0.05% (Negotiable)Exposure: - 5times (upto 1 lacs, for Intraday)20 times (from 1 lacs onwards, for Intraday)2 times (For Delivery)F&O Brokerage: - Buy & Sell 0.05% (Negotiable).

Freedom Plan:

It is a plan for those investors who want to pay FEE-Base Broking (Prepaid Brokerage).It involves four plan:1) 500 ( Monthly)2) 1400 ( Quarterly)3) 2500 ( Half Yearly)4) 4000 ( Yearly)

Margin:-

Intraday- upto 3 Lacs (per Day)Delivery- upto 40,000 (per Day)

Other features-

1. For the fund transfer and withdraw, we have tie up with two banksICICI Bank and HDFC Bank.

2. If you are having bank account in one of them, you can transfer the funds and withdraw the funds online same day.

3. Settlement of trades follows T+2 transaction cycle.

4. Freedom from paperwork, trading facilities is completely online.

5. SMS alerts on your mobile phones.

6. Apart of that we have our dedicated team to look after your Portfolio, Mutual Funds, and Commodities.

7. Religare had a contact with 180 companies and anyone who is engaged in that company, is entitled to have free account opening.

SWOT ANALYSIS

Weakness

Inexperienced Staff Low awareness due to lack

of advertisement. Lack of loyal clientage Developing product.

Strength Co-operative and

Experienced Branch Managers

Good Database Reliance Brand Low pricing

Opportunity Untapped Market Increased spending power Changing Mindset of

Customers Unpredictable Sensex

Threat Reach Stiff competition from

existing players in the market

Better products

TRADING PORTAL

Online trading refers to buying and selling of the shares/stocks/contracts/bonds with the use of internet. In this shares are not issued in physical form rather they are transferred in the dematerialized form in the Demat account directly.

DEMAT ACCOUNT

In India, a Demat account , the abbreviation for dematerialized account , is a type of banking account which dematerializes paper-based physical stock shares. The dematerialized account is used to avoid holding physical shares: the shares are bought and sold through a broker. This account is popular in India. The Securities and Exchange Board of India (SEBI) mandates a Demat account for share trading above 500 shares. As of April 2006, it became mandatory that any person holding a Demat account should posses a Permanent Account Number (PAN), and the deadline for submission of PAN details to the depository lapsed on January 2007.

What are the benefits of opening a Demat account?

Demat account has become a necessity for all categories of investors for the following reasons/ benefits:

SEBI has made it compulsory for trades in almost all scrip’s to be settled in Demat mode. Although, trades up to 500 shares can be settled in physical form, physical settlement is virtually not taking place for the apprehension of bad delivery on account of mismatch of signatures, forgery of signatures, fake certificates, etc.

It is a safe and convenient way to hold securities compared to holding securities in physical form..

No stamp duty is levied on transfer of securities held in Demat form.

Instantaneous transfer of securities enhances liquidity.

It eliminates delays, thefts, interceptions and subsequent misuse of certificates.

Change of name, address, registration of power of attorney, deletion of deceased's name, etc. - can be effected across companies by one single instruction to the DP.

Each share is a market lot for the purpose of transactions - so no odd lot problem.

Any number of securities can be transferred/delivered with one delivery order. Therefore, paperwork and signing of multiple transfer forms is done away with. It facilitates taking advances against securities on low margin/low interest.

DEMAT ACCOUNT

There are many broking houses doing business in India and they charge a brokerage on every transaction made online or offl ine. (Buying and Sell ing are treated as separate transaction).

Reliance Money’s advantage over others is that it ’s charging the lowest brokerage in the market which is just 1 paisa on every executive trade irrespective of the volume traded. Reliance Money, the brokerage and

distribution arm of Reliance ADA Group, aims to tap investors in the smaller towns and cit ies through a f lat fee structure.

The current leaders in the retail broking segment l ike ICICI Direct, India Infoline and Indiabulls offer a ‘pay per use’ model where the customer pays a percentage of the amount transacted by him. Reliance Money’s brokerage rates are quite competitive.

The new wonder is Reliance Money's pre-paid card for stock market brokerage. Reliance Money, the financial services division of Anil Dhirubhai Ambani Group-promoted Reliance Capital, is bringing to the market pre-paid cards in denominations of Rs500, Rs1,350 and Rs2,500 with validity period of two months, six months and twelve months respectively.

These cards would offer brokerage at one-third of the rate being charged by institutional and individual brokerage houses. Sample this. For a pre-paid card worth Rs500, an investor can trade up to Rs90 lakh in futures and option segment or can undertake intra-day trade of similar amount. Besides, an investor can undertake a delivery-based activity of Rs10 lakh.

The Rs1350 worth pre-paid card, total trading limit would reach Rs 3 crore, of which Rs 2.70 crore is for the F&O segment and balance Rs30 lakh for delivery-based activities.

For Rs2500 pre-paid card, total trading limit is fixed at Rs16 crore, that include F&O limit of Rs15.40 crore and balance Rs 60 lakh for delivery-based broking.

(Source Web)

Fig.4.1 Fee Structure

Converted to percentage terms  - Reliance Money offers most competitive brokerage rates  -  0.05% for delivery trades and 0.005% for non-delivery trades (fixed fee of Rs500/- for delivery trades up to Rs10 lacs  and/or non-delivery trades up to Rs1 crore). Industry rates vary between 0.4% to 0.85% for delivery trades and between 0.05% and 0.10% for non delivery trades.  

Target low level of retail penetration in India - less than 3 per cent of household financing savings makes it into equity markets

Reliance Money consumers can trade in equities, commodities and offshore Investments , IPO’s,  Mutual Funds, Insurance, Money transfer and Money Changing - all through single window, both off-line and online.

Reliance Money has already tied-up with CMC Capital Plc UK to offer offshore Investment products to Indian consumers as per guidelines.

How reliance money scored over others?

1. Two way authentication: Reliance offers its customers with a token (an electronic gadget) that generates a password, which are a third level of security in addition to the customer log in and a password provided. The password generated by the token is valid only for a period of 20 seconds. If the web page expires, for the fresh login, a new password generated by the token has to be keyed in by the customer.

2. Lowest brokerage: Reliance offers the lowest brokerage of 1 paisa which is very less with respect to the other DPs in the market.

3. User friendly software: The portal offered is very easy to understand and use.

4. Forex and offshore investment : Reliance provides the offshore facility which no other AMC is providing in the market.

5. Better research and news: Reliance offers news from the DOW JONES and REUTERS.

Seeking to bring share trading closer to consumers just like ATMs, Reliance Capital 's stock brokerage arm Reliance Money  launched Internet trading services through web-enabled retail kiosks.

Corporate Social Responsibilities

Organizations, like individuals, depend for their survival, sustenance and growth on the support and goodwill of the communities of which they are an integral part, and must pay back this generosity in every way they can...

This ethical standpoint, derived from the vision of our founder, lies at the heart of the CSR philosophy of the Reliance - ADA Group.

While we strongly believe that our primary obligation or duty as corporate entities is to our shareholders - we are just as mindful of the fact that this imperative does not exist in isolation; it is part of a much larger compact which we have with our entire body of stakeholders: From employees, customers and vendors to business partners, eco-system, local communities, and society at large.

We evaluate and assess each critical business decision or choice from the point of view of diverse stakeholder interest, driven by the need to minimize risk and to pro-actively address long-term social, economic and environmental costs and concerns. For us, being socially responsible is not an occasional act of charity or that one-time token financial contribution to the local school, hospital or environmental NGO. It is an ongoing year-round commitment, which is integrated into the very core of our business objectives and strategy.

Because we believe that there is no contradiction between doing well and doing right. Indeed, doing right is a necessary condition for doing well.

Financial Literacy

The Piggy Bank series that Reliance Life Insurance launched last year has been rolled out across all 1,146 branches of the company. As its President, Mr. Malay Ghosh put it: “He further added, "We

firmly believe that it is crucial to include education about financial discipline and planning as a part of our education system and this is not possible without the support of corporate India."

Representatives from each Reliance Life branch visited their local schools and explained the basics of savings and financial planning through this “Piggy Bank Series”. Characters and examples that will entice and interest students were used for the same.

Students were also left with a small pocket diary, in which they were asked to note down their income (pocket money, gifts, awards won etc) and expenses (chocolates, ice creams etc) as demonstrated during the program. They were encouraged to use this diary as a means of calculating the amount they require to save to buy their 'Dream Gift' with their own money, at the end of the period set by them.

“Reliance Kargil Scholarship Scheme” The Scheme to support educational needs of the children of defence personnel who sacrificed their lives or were disabled during Kargil war, instituted with the generous contribution from Reliance employees. During the year 87 children received financial support for their education from standard IV to XII under the scheme.

“Dhirubhai Ambani Scholars Scheme" for meritorious children of Reliance share holders. The Scheme was announced in 2003 as a one time measure to commemorate the silver jubilee of the company's listing on the Bombay Stock Exchange. In the first year 900 meritorious children of the shareholders received the Scholarships. These Scholars are eligible to get the scholarships annually till they complete their undergraduate studies, provided they secure minimum of 60 per cent marks in each of their annual University Examination. A total of 772 scholars, having secured the stipulated marks/ grade at the first year university examination continued to receive the Scholarship for the second year for their education leading to Degree / Diploma course. Of these 540 scholars who are pursuing degree courses in Engineering, Medicine and allied subjects while the rest 232 have chosen courses in commerce, arts and law faculties.

“Healthcare Initiative”Sir Hurkisondas Nurrotumdas Hospital and Research Centre RIL extends extensive financial support and professional expertise to Sir Hurkisondas Nurrotumdas Hospital and Research Centre (HNHRC), a charitable hospital offering free and subsidized services to a good proportion of the patients availing of its various diagnostic and treatment facilities. During the year 9,966 patients received treatment as indoor patients. At the Outdoors, 38,454 patients availed of the services at P.T. Clinic, the popular Diagnostic Centre of the Hospital, where registration is entirely free to all. The Hospital continues its age old tradition of rendering every service in the Casualty free. An average annual growth rate of around 10 per cent is witnessed in the outdoor patient population during the past few years. The Hospital is equipped with state-of-the-art operation theatres optimally used for specialized surgeries.

“Free Health Screening Camps” continue to be organized. Among the important events during the year were a check-up scheme at concessional rate offered at the Hospital throughout the monsoon season, a health screening programme conducted during August-September 2005, and a diabetic foot camp conducted in December 2005.

“Dhirubhai Ambani Hospital, Lodhivali, Dist. Ragiad” Dhirubhai Ambani Hospital attaches a very high importance to improve the quality of life in surrounding communities. It extends prompt and specialized services to the Mumbai-Pune highway accident victims. Trauma patients are provided free life saving treatment. Besides taking care of hospitalization requirements, the hospital provides poor patients and senior citizens subsidized treatment - both in the outpatient and in-patient departments. The hospital provided timely support to neighboring community during the recent floods in Maharashtra. The flood relief work was carried out through Red Cross society. Two medical centers - Dhirubhai Ambani Hospital, Lodhivali and IPCL, Nagothane were working for the flood affected people in Raigad district. The other flood affected districts were also covered for supply of flood relief kits.

Drishti

Project Drishti, a nation-wide corneal grafting drive to bring light into the lives of visually challenged from the underprivileged segment of society, has restored the gift of sight to over 5,500 Indians. A unique joint initiative of Reliance Industries Limited and National Association of Blind (NAB), Project Drishti has undertaken over 5,500 keroptoplasty surgeries in less than 4 years since it was started - all free of cost. It is now the largest corneal grafting surgery project enabled by a single corporate entity in India.

Drishti Painting Competition

As a part of corporate initiative to propagate awareness of Project Drishti, Drishti painting competition is organized for school children at several manufacturing divisions and offices of the Company.

Eco-friendly Initiatives

In addition to the above initiatives, the Company also focusses on the development of the eco-system and improvement of the green belt across its manufacturing and E&P sites.

Project “Cancer-Aid” for Cancer patients

 In partnership with the Lions Cancer Detection centre, the Company provides monetary assistance for purchase of medicines to cancer patients.

Mobile Dispensaries

Reliance also operates free medical diagnostic and therapeutic services at neighbouring villages of several of its manufacturing locations.

Blood Donation Drives

The Company’s employees organize and participate in blood donation campaigns every year across its manufacturing divisions  and offices.

Initiatives to Combat HIV / AIDS and TB

The Company provides Community Medical Centres near most of its manufacturing divisions. These centres cater to the Governmental health care programmes like maternal and child health, TB, malaria, HIV / AIDS etc., besides providing curative treatment. These Centres have been well received and go a long way in providing the medical relief for the community. The Company has implemented HIV / AIDS and DOTS programme at Hazira and Jamnagar, and is in the process of replicating the same at the other manufacturing divisions. This initiative is a publicprivate partnership between the Government, NGOs and Reliance. This comprehensive project extends from creating awareness to providing treatment, care and support. Reliance’s initiative to combat HIV / AIDS has been recognized by UNAID, World Bank and other national and international institutions.

Adoption of Public Health Centre (PHC)

Reliance has adopted a Primary Health Centre (PHC) from the State Government of Gujarat and converted it into a model primary health centre. The PHC located at Dahej in Bharuch District, Gujarat, has attained the status of the best PHC in the District in a short-span of 6 months and has established itself as a centre of excellence.

Highway Rescue Intervention

To provide emergency and trauma care to victims of  highway accidents, Hazira has tied-up with an NGO to run the project on  the State Highway in Gujarat starting from Sachin to Bharuch, and the State Highway via Hazira - Olpad - Hansot - Ankleshwar. The project will benefit thousands of commuters who use this highway  on a daily basis.

Traffic Police personnel are the first government agency to respond to an emergency involving a chemical tanker or a truck. With the  increase in the number of accidents on roads and the unending addition of new chemicals, it is important that these  personnel understand the hazards and the basic steps to be taken to safeguard themselves and the general public from the hazards of chemicals. The Company’s initiative of training traffic police personnel by its Kurkumbh Manufacturing Division in handling road transport emergencies involving chemicals will go a long way in serving the objective of community well-being.

Dhirubhai Ambani Hospital, Lodhivali

Reliance also operates the Dhirubhai Ambani Hospital, Lodhivali and renders quality medical services to the rural population and highway accident victims. 

Moti Khavdi Medical Centre

As part of corporate social responsibility services, a community medical centre was established in Moti Khavdi, a village near Jamnagar Manufacturing Division, during the pre-commissioning  stage of the refinery in November 1995. This Community Medical Centre provides comprehensive medical services free of cost and  round the clock. About 1.2 lakh villagers of nearby areas like Moti Khavdi, Nani Khavdi, Padana, Meghpar, Gagva, Jogvad, Baid, Kanalus, Sikka, Sarmat, Navaniya, Mungani, Jakhar, Bara, Vasai and Amra benefit from the same.

Community Medical Services at SEZ, Jamnagar

A massive workforce from all parts of India are working at the mega construction activities in the SEZ at Jamnagar. The Company has given shelter in several colonies. Each labour colony has a  separate medical centre. Each medical centre is manned  round the  clock by doctors, nurses and ambulances.

Reliance Rural Development Trust (RRDT) 

The work to improve the rural infrastructure under the Government of Gujarat’s rural development plans was continued with full energy by RRDT. During the year under report, the RRDT created 760 facilities in the rural areas at a cost of Rs. 24.07 crore. The facilities  included 247 concrete roads, 465 anganwadis, 38 drinking water facilities, 1 panchayat office, 2 community halls, 5 check-dams and 2 other amenities in the rural areas of the State of Gujarat. RRDT has turned out to be an exemplary corporate NGO steadily and silently implementing government’s developmental plans for rural areas of Gujarat. It is a unique synergy between a corporate giant like Reliance Industries Limited and the Government of Gujarat, formed to carry out rural development projects in private public partnership.

Chapter 2

Objectives & Research

Methodologies

OBJECTIVE

To find the market potential and market penetration of Reliance

Money product offerings across the country.

To collect the real time information about preference level of customers using Demat account and their inclination towards various other brokerage firms e.g. Indiabulls, Sharekhan, Indiainfoline, Religare, etc.

To expand the market penetration of Reliance money. To provide pricing strategy of competitors to fight cut throat competition. To increase the product awareness of Reliance money as single window

shop for investment solutions.

To compare the services of Reliance Money with its competitors.

The Broad objective of the project is to make clients and let them knowabout the different services offered by the Reliance Money . Also to convincethem about how Reliance Money services out score there rivals. And how infuture they will be benefited from the services offered by Reliance

Money.This project will accomplish to understand the problem faced by theexisting client and find ways to solve there queries at your level otherwiselet the above level know about there problem.

We have to be in regular contacts with our clients so that we come toknow about the problem they are facing. This also helps us to multiply our

clients by getting the further references. By this we are able to make a chain of the customers, which expands as we satisfy there needs.

METHODOLOGY

We were supposed to operate from reliance money Bhagalpur branch. We were made aware about all the products Reliance Money was providing with a more stress on their core product i .e. Demat account.

Methodology –(OTJ-On the job)

Methodology of the project starts with –

· In the first phase we are trained and they teach us different thingsabout market.

· After that they conduct a mock viva, in this they ask about the real lifeproblem faced by the customers.

· They provide leads and after that we make calls.

· Then after that we have to provide details of product and convinceThem.

· Then we have to visit them and get the formed filled from them.

· Maintaining dairy of clients and contacting them at regular basis.

Methodology –(OFTJ-Off the job)

Exploratory research is a type of research conducted because a problem

has not been clearly defined. Exploratory research helps determine the bestresearch design, data collection method and selection of subjects. Given itsfundamental nature, exploratory research often concludes that a perceivedproblem does not actually exist. Exploratory research often relies on secondary research such as reviewingavailable literature and/or data, or qualitative approaches such as informaldiscussions with consumers, employees, management or competitors, andmore formal approaches through in-depth interviews, focus groups,projective methods, case studies or pilot studies.The results of exploratory research are not usually useful for decisionmakingby themselves, but they can provide significant insight into a givensituation. Although the results of qualitative research can give someindication as to the "why", "how" and "when" something occurs, it cannottell us "how often" or "how many."

Exploratory research is not typically generalizable to the population at large.

Exploratory Research

Research is exploratory when you use no earlier model as a basis of yourstudy. The most usual reason for using this approach is that you have no other choice. Normally you would like to take an earlier theory as a support, but there perhaps is none, or all available models come from wrong contexts. Exploratory research means that hardly anything is known about the matter at the outset of the project. You then have to begin with a rather vague impression of what you should study, and it is also impossible to make a detailed work plan in advance. Analysis in exploratory research is essentially abstraction and generalization. Abstraction means that you translate the empirical observations, measurements etc. into concepts; generalization means arranging the material so that it disengages from single persons, occurrences etc. and focuses on those structures (invariances) that are common to all or most of the cases.

It will seldom be possible to divide exploratory study into such clear phasesas is common in the case that the object has been studied earlier. Accordingto Alasuutari (1993 p.22), in qualitative analysis of empirical findings, you

can distinguish two phases but these two overlap:simplification of observationsinterpretation of results (or "solving the enigma")In the simplification phase, the material is inspected from the theoreticalpoint of view of the study project, and only the points relevant from thisangle are noted. Details differing from one individual to another at randomare omitted or pushed aside so that the general lines of the data can be discerned more easily. Simplification continues by finding the relationships between separate observations or cases. Some tools for this work are comparison andclassification. The goal is to find the general rule or model that is valid in allor most of the observations. This model can be, for example, development orevolution, causality, or a conscious action to attain an outcome which istypical in normative research. -- In any case the analysis starts from separatecases and aspires to create one or a few general models."Solving the enigma" does not always mean answering exactly those questions that were asked at the outset of the project. Sometimes the most interesting questions are found at the end of the research, when the researcher has become an expert on the subject. It is often said that "data teach the researcher".

The purpose of descriptive exploratory research is to extract a structurefrom the source material which in the best case can be formed as a rule thatgoverns all the observations and is not known earlier (per the definition ofexploratory study). Finding the unknown structure may need some creativeinnovation, because even the most sophisticated computerized analysismethods cannot automatically uncover which type of structure is concealedin data. Usually you first have to formulate a tentative pattern for the

assumed structure in the observations and then you can ask the computer toestimate how well the data corresponds to the model, cf. Tools for Analysis.

Secondary Data

In research, secondary data is data collected and possibly processed bypeople other than the researcher in question. Common sources of secondarydata for social science include censuses, large surveys, and organizationalrecords. In sociology primary data is data you have collected yourself andsecondary data is data you have gathered from primary sources to create newresearch. In terms of historical research, these two terms have differentmeanings. A primary source is a book or set of archival records. Asecondary source is a summary of a book or set of records.

Secondary data analysis

There are two different types of sources that need to be established in orderto conduct a good analysis. The first type is a primary source which is theinitial material that is collected during the research process. Primary data isthe data that the researcher is collecting themselves using methods such assurveys,direct observations, interviews, as well as logs(objective datasources). Primary data is a reliable way to collect data because the researcherwill know where it came from and how it was collected and analyzed sincethey did it themselves. Secondary sources on the other hand are sources thatare based upon the data that was collected from the primary source.

Secondary sources take the role of analyzing, explaining, and combining theinformation from the primary source with additional information.Secondary data analysis is commonly known as second-hand analysis. It issimply the analysis of pre-existing data in a different way or to answer adifferent question than originally intended. Secondary data analysis utilizesthe data that was collected by someone else in order to further a study thatyou are interested in completing. Common sources of secondary data are social science surveys and data from government agencies, including the Bureau of the Census, the Bureau of Labour Statistics and various other agencies. The data collected is most often collected via survey research methods. Data from experimental studies may also be used.

TARGETS

The time duration of the project is 2 months starting from 1 s t July and ending on 30 t h August. We were given targets to be achieved during training months. The targets of each month were:

15 Demat Accounts 1SIP or Mutual Fund worth Rs10,000

I was supposed to use the database provided by the company to make cold calls or by directly meeting people to get new leads

The questionnaire used is attached.

While making cold calls, we need to have:

Good Communication Skills (Voice quality is clear and articulate) Persistent and able to bounce back from rejection Good organizational skills. Ability to project a telephone personality (Enthusiasm, friendliness) Flexibility: can adapt to different types of clients and new situations.

Using a good database is very essential.

“Eighty percent of our business comes from 20 percent of our customers" is a frequent statement at any sales convention. There's hardly a sales executive who is not aware of the 80/20 rule”.

While talking to customers, I analyze their needs. Whether they want to go for investment purpose or insurance or both. Suggest them the plan that best suits them. If they agree to it then either we send across the agents to close the deal or close it themselves.

Fig6.2 The Customers Sales Cycle

Fig6.1 The Constructive Factors of Tele call ing

Problems faced while selling products: Customer dissatisfied with the services. People fear that Reliance Money Being a Private company and a new

entrant may be able to sustain or not. Insurance means LIC for people. Past experience, word of mouth. Misguidance by agents. People do not want insurance products. Lack of knowledge and awareness about general and life insurance. People risk appetite is very low, so they are afraid of mutual fund as well. People relate the problems of mobile phones of Reliance Communication

with Reliance Money.

Customer Acquisition Process

Educate the prospects on the products and services. Customize the approach to each of the different customers involved in the

sales process. Establish a knowledge base for sales people, resellers and partners. Ramp up the new salespeople more quickly and keep them on road. Track the prospects as they move through the sales process. Harvest other types of information from your market to help the company

close business more quickly. The data of the prospects can be used for research and development purpose.

Enabling the consistent flow of information to the customer and encouraging feedback from them.

Helping the customers do the Financial Planning for future.

MY RESPONSIBILITY ORGANISATION:

I worked with Reliance money with a profile of financial advisor. This profile offers me to understand the need of the customer and provide them the best deal possible with maximization of the profit, both for the company as well as for the customer.

The most important aspect for the role of financial advisor is trust. So for fulfillment of the targets one needs to:

Capitalize on old and loyal clientage which can be building slowly by advising people in the best possible way.

Generating new leads through various activities.

Generation of leads:

Since I was new in this field so I had to start from the scratch and generate new leads to sustain in the market.

Cold calling is one of the trusted ways of getting to the customers without meeting them. Although the rate of conversion remained very less. For cold calling the quality and accent remains a very important criterion. This activity gave me mixed results. I often got success and generated many leads through it but it also landed me in awkward position where the customer were in different mood and made us hear words for which a marketer should be always prepared to hear. Corporate calls always remained more difficult to crack with respect to retail sector.

The corporate were the most difficult and most tempting to get the business from. It took me one day to crack Hi-tech Gears.

At Reliance money after getting the product knowledge in the first week at the branch I was also allotted distributor to work with. In the initial phase I was accompanied by more experienced staff. After I became known to the market and procedure I started attending calls alone only.

After the third week my performance also improved and I was able to get close to the targets, though it looked difficult to achieve in the beginning. To get awareness of the every product I attended diversified calls. This helped me to implement cross selling to get better results.

Since the reliance money core product is Demat account more stress was given over this. Demat account was also the most tempting of all the products as it was difficult to convince the customer for the reliance Demat as it was new and with many limitations. It was always difficult to convince on 1 paisa, as it wasn’t mentioned anywhere in ink.

Chapter 3

Limitations & Findings

LIMITATIONS:

1. Cold Calling Voice and accent plays a major role. The right time to call a customer cannot be decided, as the customer may

in a different mood at the time of calling. Time consuming Less success rate

2. Corporate Time consuming Contacts with higher authorities play a major role.

LEARNINGS

To get initial success in this field is very difficult. Although the business generation becomes easier with time as we serve more people who then get added up in the loyal clientage. Thus time and service are two most factors to get in this field.

Also the corporate remains a very important segment which gets business in bulk but retail cannot be ignored which makes your business ticking.

Customer remains in the pivotal position.

Findings1. Preference of

Investment

Interpretation: This shows that although the mutual funds market is on the rise yet, the most favored investment continues to be in the Share Market. So, with a more transparent system, investment in the Stock Market can definitely be increased.

2. Awareness on Online Share Trading

Fig7.2 Result of Awareness of Online Share Trading

Interpretation: With the increase in cyber education, the awareness towards online share trading has increased by leaps and bounds. This awareness is expected to increase further with the increase in Internet education.

3. Awareness of Reliance

Money as a Brand

Fig7.1 Result of Preference of Investment

Interpretation: This pie-chart shows that reliance money has a reasonable amount of Brand awareness in terms of a premier Retail stock broking company. This brand image should be further leveraged by the company to increase its market share over its competitors.

4. Awareness of Reliance Money Facilities

Interpretation: Although there is sufficiently high brand equity among the target audience yet, it is to be noted that the customers are not aware of the facilities provided by the company meaning thereby, that, the company should concentrate more towards promotional tools and increase its focus on product awareness rather than brand awareness.

5. Satisfaction Level among Customers with current broker

Fig7.5 Result of satisfaction level among customers with current broker

Fig7.3 Result of Awareness of Reliance money as a Brand

Fig7.4 Result of Awareness of Reliance money Facilities

Interpretation: This pie-chart corroborate the fact that Strategic marketing, today, has gone beyond only meeting Sales targets and generating profit volumes. It shows that all the competitors are striving hard not only to woo the customers but also to make them Brand loyal by generating customer satisfaction.

6. Frequency of Trading

Fig7.6 Result of Frequency of Trading

Interpretation: Inspite of the huge returns that the share market promises, we see that there is still a dearth of active traders and investors. This is because of the non – transparent structure of the Indian share market and the skepticism of the target audience that is generated by the volatility of the stock market. It requires efficient bureaucratic intervention on the part of the Government.

7. Percentage of earnings invested in Share Trading

Interpretation: This shows that people invest only upto 10% of their earnings in the stock market, again reiterating the volatile and non-transparent structure of the Indian stock market. Hence, effective and efficient steps should be undertaken to woo the customers to invest more in the lucrative stock market.

Fig7.7 Result of percentage of earning invested in share trading

Chapter 4

Recommendations & Conclusion

RECOMMENDATIONS

Based on the findings of our project we would like to suggest the following:-

After sales services and follow up calls are important for getting new references so trained telesales should be appointed for this purpose whose sole work should be to make feedback calls.

Reliance is having too many financial products right from Demat account to General Insurance and not all the salespeople are familiar with each and every product so the work force should be segregated each group dealing in a specific product and the sales target should be given likewise.

While interacting with the investors I found that most of the customers are unaware about the Mutual fund. Some of the people look upon mutual funds and equity trading as gambling. Thus a mutual fund awareness program can help to increase the penetration of mutual funds in the market.

Reliance should declare in black ink that they will charge just 1 paisa per transaction. People tend to think that there must be some hidden charges.

Rs750 account opening charges are too high when targeting a corporate so the company should be flexible on this amount.

Reliance should provide periodic training for updating the product knowledge of various financial advisors.

Company should have a scheme of rewards and recognition to employees and the field persons to boost their motivation.

CONCLUSIONS

Based on the above SWOT analysis and study of the available data I have come to the following conclusions:

HUGE POTENTIAL:

All though relatively new entrants in the market, Reliance is slowly but surely gaining a strong hold because it is finally able to grasp the investment climate in Delhi. Secondly the branch managers at all the branches are very knowledgeable with a lot of experience in the financial markets so under their leadership can definitely expand its base

The entire workforce consists of mostly youngsters, which means they can be encouraged and motivated to do good work because they have a long way to go and most of them are eager to climb the ladder.

Right now Reliance is at its nascent stage and will surely grab the major market under its belt very soon like in other fields.

Huge investments taking place:

The Stock Market has been very buoyant until now especially in the past 3 years. This particular trend is very favorable because a soaring SENSEX means higher returns, which encourages the investors to invest their money in the market. Although in the past 3 months the market has shown very unpredictable trend and has already lost over 1000 points.

So in order to make the best the only thing required is to recruit more field staff who should be trained in a proper way to get better results.

In case of insurance, it requires push selling because people always associate it with emergencies and unpleasant situations like death and they don’t want to think about such situation let alone prepare for them, which means it requires a lot of conviction on part of the executives.

Large untapped market:

People have just opened up to the idea of ULIPs because till now they knew only two kinds of insurance plans, endowment and term plans so the concept of high returns with protection is very new to them and slowly and slowly these are becoming popular so there is a huge market waiting to be tapped.

In the past few years there has been a tremendous inflow of funds in the Indian market which has lead to the sky rocketing SENSEX. In fact there has been a tremendous response from the investors not only in shares but mutual funds as well. The Rs5700Cr infused in the market through the Reliance Equity mutual Funds is an example of the growing trust of investors who earlier shied from such investments due to stock market fiascos like the Harshad Mehta scam or the US64 disaster in which investors lost huge amounts of money as well as their trust in financial instruments.

With the FDI limits being relaxed, a lot of avenues will open up in the insurance sector and insurance companies are expected to come up with new plans with a great deal of customization and flexibility.

Chapter 5 Questionnaire &

Bibliography

QUESTIONNAIRE

Q1. In which of these Financial Instruments do you invest into?

Shares Mutual Funds Bonds Derivatives

Q2. Are you aware of online Share trading?

Yes No

Q3. Heard about Reliance money?

Yes No

Q4. Do you know about the facilities provided by Reliance money?

Yes No

Q5. With which company do you have your DEMAT account?

Reliance money ICICI Direct Kotak Mahindra India Bulls

Others (please specify)

Q6. What differentiates your Share trading company from others? (in regards of brokerage, satisfaction, services, products )

Q7. Are you currently satisfied with your Share trading company?

Yes No

Q8. How often do you trade?

Daily Weekly Monthly Yearly

Q9. What percentage of your earnings do you invest in share trading?

Up to 10% Up to 25% Up to 50% Above 50%

Q13. How do you rate these share trading companies?

1. 2. 3.

4. 5.

Q14. What more facilities do you think you require with your DEMAT account?

a. Reliance money b. ICICI Direct c. India Bullsd. Kotak Mahindra

e. Others (Please specify)

Name:

Age:

Sex: Male Female

Phone No:

Occupation:

BIBLOGRAPHY

Agarwal, J.D. "Security Analysis & Portfolio Management: A Review, Finance India, Vol. II No. 1, March 1989.

Bhatt, V. V. "An Appraisal Of Some Recent Estimates Of Savings and Investments", ICRNI, Vol. 5, 1963.

Personal Information

Douglas A. Hayes and W. Scott Bauman "Investments: Analysis and Management" III Ed., 1976, MacMillan

Malhotra, Naresh "Marketing Research and Applied Orientation" IV Ed., 2005, Pearson

REFERENCES

www.mutualfundsindia.com

www.easymf.com

www.amfiindia.com

www.google.com

www.moneycontrol.com

www.valueresearchonline.com

www.bseindia.com

www.reliancemoney.com

www.relianceadagroup.com

www.reliancecapital.co.in

www.karmyoga.org