INTRODUCTION TO THE COMPANY

Religare is an emerging markets financial services group with a presence across Asia,

Africa, Middle East, Europe, and the Americas. In India, Religare's largest market, the group

offers a wide array of products and services including broking, insurance, asset management,

lending solutions, investment banking and wealth management. With 10,000-plus employees

across multiple geographies, Religare serves over a million clients, including corporate and

institutions, high net worth families and individuals, and retail investors.

NAME

Religare is a Latin word that translates as 'to bind together'. This name has been chosen to

reflect the integrated nature of the financial services the company offers.

SYMBOL

The Religare name is paired with the symbol of a four-leaf clover.

Traditionally, it is considered good fortune to find a four-leaf clover as there is only one

four-leaf clover for every 10,000 three-leaf clovers found.

For us, each leaf of the clover has a special meaning. It is a symbol of Hope. Trust. Care.

Good Fortune.

For the world, it is the symbol of Religare.

The first leaf of the clover represents Hope. The aspirations to succeed. The

dream of becoming. Of new possibilities. It is the beginning of every step and the

foundation on which a person reaches for the stars.

   

The second leaf of the clover represents Trust. The ability to place one’s own

faith in another. To have a relationship as partners in a team. To accomplish a

given goal with the balance that brings satisfaction to all, not in the binding, but

in the bond that is built.

   

The third leaf of the clover represents Care. The secret ingredient that is the

cement in every relationship. The truth of feeling that underlines sincerity and

the triumph of diligence in every aspect. From it springs true warmth of service

and the ability to adapt to evolving environments with consideration to all.

   

The fourth and final leaf of the clover represents Good Fortune. Signifying that

rare ability to meld opportunity and planning with circumstance to generate those

often looked for remunerative moments of success.

   

Hope. Trust. Care. Good Fortune. All elements perfectly combine in the

emblematic and rare, four-leaf clover to visually symbolize the values that bind

together and form the core of the Religare vision.

MR. SUNIL GODHWANI

Mr. Sunil Godhwani, Chairman and Managing Director, Religare Enterprises Limited, is the

driving force behind the company. A man with a vision to create a global business of excellence,

he is the inspiration to all as he spearheads the company’s management and global operations;

strategizing and directing it through its next phase of growth.

Sunil brings to the company strong leadership skills, vigor and a passion for excellence. He

believes in nurturing a culture that is entrepreneurial, result oriented, customer focused and based

on teamwork. He has given strategic direction to Religare’s growth since his joining in 2001. He

has been instrumental in establishing Religare’s vast network and shaping the Company’s

strategies in India and abroad. He is on a constant lookout for taking the Company to new

heights by managing various acquisitions, finding new partners for joint ventures and scouting

new avenues for the business. Under his able leadership, Religare Enterprises Limited is India’s

fastest growing, integrated financial services company with a significant presence in 12 countries

across Asia, Africa, Middle East, Europe and the Americas. With over 10,000 employees,

Religare serves over a million investors ranging from corporate clients to high net worth

individuals.

Sunil has a diverse and wide-ranging experience of over two decades in managing large scale

businesses, he also serves as Director on the Boards of Religare Technova Limited, Super

Religare Laboratories Limited, Religare Macquarie Wealth Management Limited, AEGON

Religare Life Insurance Company Limited, Religare Voyages Limited, Fortis Healthcare Limited

and other subsidiaries/ Group companies of Religare.

A powerful orator and a great motivator, Sunil has been awarded with many awards and

accolades. Recently he has been awarded ‘India Business Leader of the Year’ award at Global

Indian Business Meeting hosted by Horasis, in Madrid, Spain and “CEO of the year Award” at

CEO CLUBS INTERNATIONAL Awards

MR. ANUJ GULATI

In his capacity of CEO, Anuj would be responsible for setting up this business and work towards

making Religare as one of the dominant players in the Indian Health Insurance industry.

His last assignment was with ICICI Lombard General Insurance Co. Ltd., India as “Director -

Service and Business Development”. He was reporting directly to the MD & CEO and was

responsible for Product Development, Pricing, Underwriting, Claims, Operations, Technology,

Administration , Marketing & Corporate Communications. Apart from heading these functions

Anuj also had complete business responsibility for the online and rural business.

Prior to ICICI Lombard his key assignments have been:

As a financial analyst with Procter & Gamble India Ltd

Strong entrepreneurship experience as CEO of Labprocure India Pvt Ltd.

Anuj is a Chemical Engineer from IIT Delhi and is an MBA from IIM Bangalore.

MR. AMIT SARUP

Mr Amit Sarup carries the overall responsibility of leading the private equity business of the

group. A seasoned wealth management professional, he is the Whole-time Director at Religare

Macquarie Wealth Management and also oversees the Arts business, carried under Religare Arts

Initiative, both ventures in which he has been involved in setting up and creating from the

beginning.

Amit received a bachelor’s degree in commerce from the University of Delhi and a master’s

degree in business administration from the Institute of Management Technology, Ghaziabad,

India. Prior to joining Religare, he was Vice-President, Wealth Management at the Kotak

Mahindra Group and held several key positions there from 2000 to 2005. He has over 18 years of

experience in the capital markets and financial services industry

MR. ABHAY NARAYAN SAPRU

Abhay has over 20 years of work experience. He served in the army for a decade, post which he

joined Jones Lang Lassalle a MNC brokerage firm. Abhay was one of the earlier members and

helped in setting up the company. He worked in almost all the verticals ie Broking, Valuation &

Consulting. He left JLL as the head of their Delhi office to join Citi Bank as AVP property &

facilities for the north. A 3 year stint with Citi and Abhay took over as VP & head of the

Corporate Realty Services at Abn Amro Bank. Later on he joined Aegon Religare as a Director

to set up and run their Infrastructure department. He worked with Aegon Religare for 3 years and

was subsequently transferred to Religare.

Abhay would be overall responsible for managing the infrastructure of the company, broadly

comprising Property, Procurement, Security & Administration.

He Graduated from Delhi University & studied Real Estate from Singapore University

NETWORK

PRODUCT OFFERINGS

EQUITY

Investments in stocks often serve as a very foundation in portfolios for many types of investors.

As a member of NSE, BSE, MCXSX, USE and a depository participant with NSDL and CDSL,

Religare Securities Limited (RSL) has helped both naïve and experienced investors to chart their

way even in tumultuous times.

Though equities are considered more rewarding when compared to other investment options, at

RSL we provide highly efficient and sophisticated trading solutions to effectively manage your

equity investments in an increasingly complex and dynamic market scenario.

Indian markets, though in the nascent stage offer one of the most exciting and rewarding

investment opportunities among the emerging market economies. Hence, as financial awareness

deepens and more sophisticated instruments enter the Indian markets, investors need to tread the

path cautiously. At RSL we empower our clients through best-in-town research and analysis at

the right time so that they see trends as and when they emerge.

With a presence in more than 1500 locations across India, RSL has successfully enhanced

trading flexibilities of its partners, imparting an enriched trading experience through our unique

suite of execution platforms (both offline and online) and state-of-the-art tools and features in

both intraday and delivery segments of the market.

Religare Securities Ltd. (“RSL”), a wholly owned subsidiary of Religare Enterprises Limited

(REL), a global financial services group is a market leading securities firm in India. The

company offers equity broking services to more than half a million clients using both, offline and

online platforms and also offers depository participant services.

Trading in Equities with Religare truly empowers you for your investment needs. We ensure you

have a superlative trading experience through our -

Highly process driven and diligent approach

Powerful research and analytics

One of the ‘best-in-class’ dealing rooms

Further, Religare also has one of the largest retail networks. You can now walk into any

of our branches and connect to our highly skilled and dedicated relationship managers to

get the best services.

Trading Channels - Branch/Online - Religare Securities Ltd has a Pan India presence

with its network of branches, sub-brokers and primary market sub-brokers. Religare has

operations at 2092 locations across more than 500 cities and towns. Online clients get

cutting-edge platform (RACE) that helps even a non-tech savvy customer to trade hassle-

free and thus covers varying needs of the customers - both software based and direct

online access. Brokerage Plans - Religare charges brokerage on the basis of volume

and frequency of trading. We provide different brokerage plans for beginners and traders.

Research - We at Religare believe in providing independent research to clients to help

them make investment decisions, with strict emphasis on self-regulation, avoiding any

possible conflict of interest in objectivity.

Backed by strong pool of highly skilled research analysts, we offer varied research

products and services.

Our Research Products include:

Fundamental research

Technical research

Daily reports

Intraday trading technical calls

Intraday derivative call

Structured products

Index arbitrage

Arbitraging between Index (NIFTY) Futures and its constituents (underlying stock

futures)

Volatility trading

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

volatility of underlying stock futures.

Hedging strategies

Our services are conceived to offer you -

An enriched trading experience with best-in-class dealing rooms

Access to daily, incisive, fundamental and technical research and analytics from our

research teams

Personalized services through a team of efficient Relationship Managers and Dealers

Ability to map multiple bank accounts in back-office

A dedicated IT help desk

E-contract notes

Portfolio valuation reports and ledgers on demand

Prompt payout of funds

Other value-adds such as online fund transfers, 24-hr online portfolio tracking,

browser and application-based platforms

Single window login for all back-office systems, regular alerts and daily trade

confirmations on SMS to your mobile phone

Ability to access all your accounts through a unique Customer Relationship Number

COMMODITIES

Religare Commodities Limited (RCL), a wholly owned subsidiary of Religare Securities Ltd

(RSL), was initiated to spearhead exchange-based Commodity Trading. As a member of MCX,

NCDEX, NMCE, ICEX and ACE in addition to both the Spot Exchanges, RCL is a trade

facilitator providing the platform to trade in commodities.

Trading in Commodities with Religare truly empowers you for your investment needs. We

ensure you have a superlative trading experience through –

Access to daily incisive, fundamental and technical research and analytics from our

efficient in house research

Personalized services through a team of dedicated Relationship Managers and Dealers

Browser and application based platforms available for commodity trading

Our dedicated team of experts and highly skilled professionals provide valuable

assistance in exchange-based commodity trading. Whether a first-timer, an experienced

trader, a hedger or a corporate client, we offer each client a customized trading

experience.

Our nationwide presence in Mandi (agricultural market hubs) locations brings commodity

trading right to the doorstep of the actual producers (farmers) and enables them to hedge

risks better. These Mandi branches also act as listening posts that feed information on

arrivals, demand, weather, production and other aspects which impact the physical

markets and help our research teams deliver better quality research on commodities.

A future trading eases the hassles and costs of settlements and storage for traders who do not

want custody. The most lucrative element of futures trading is that it allows investors to

participate and trade at nominal costs.

a) You no longer need to put the whole amount for trading, only the margin amount is required.

b) Traders can earn from short selling.

OUR VALUE ADDS

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

Access your ledger balances and account information over the internet and at the branch

Help Desk

Browser and application-based platforms can also be made available for commodity

trading

SMS services for research advice to keep you abreast with your investments

Regular News and Updates on market.

COMMODITY CORPORATE DESK:

Are you concerned that your current hedging strategy isn''t effective?

Are you concerned for not getting fair market price for your hedge transactions?

Are you concerned that you’re spending an inordinate amount of time working on your

hedge strategy rather than your business?

Religare Commodity Corporate Desk educates the producers and consumers about the

benefits of hedging and hedging opportunities available. The desk provides guidance to

corporates/firms on the entire life cycle of their hedging strategies, including designing,

implementing, and monitoring.

Uninformed hedging decisions, combined with sustained volatility in the commodities

market, can be disastrous for companies of all sizes. The Religare Commodity Corporate

desk helps smarter decision making with a higher risk-adjusted return on capital.

The way we proceed:

Plan -

Meet the key stakeholders to understand the business and goals. Analyze the commodity

risk inherent in production and/or consumption. Define the hedging objectives given

budgetary, legal, and credit constraints.

Analyze -

Make an assessment of the current and future enterprise-wide commodity risks. Analyze

future cash flows using a sophisticated, multi-factor Monte Carlo approach. Generate

different price options and volatility scenarios. Quantify the hedging strategy in an

optimal risk/return framework. Provide guidance for the analysis of available hedging

strategies.

Implement -

Implement the selected hedging strategies by providing independent pricing and fair

market valuations.

Monitor -

Monthly consultation on the performance of the hedging programs, supported by the

following analytics and reports:

Mark-to-Market

Complete P&L Decomposition

Counterparty Credit Exposure

Value at Risk (VaR)

Cash Flow at Risk (CFaR)

Updated “best case,” “worst case” and “base case” cash flow scenarios

CURRENCY

Currency trading is the largest market worldwide. As per BIS, on an average, trades worth $4

trillion are done every day. The mechanism of the currency trading is simple - all currencies have

a value when compared to other currencies and it is this trading (either purchase or sale) of

currencies that is done to take advantage of the shifts in the relative movement.

Now, experience the excitement of the world''s most traded financial instrument with Religare.

We provide a flexible platform to our clients to expand and diversify their portfolios and add

currency derivatives to complement their commodity and equity trading. Since its inception in

August 2008, the currency futures market has grown by leaps and bounds. With the successful

trading in USD-INR, the offerings have now been extended to Euro-Indian Rupee, Pound

Sterling-Indian Rupee and Japanese Yen-Indian Rupee.

In line with our vision to provide an enriched trading experience, we offer premium levels of

services, security and state-of-the-art trading technology to accommodate our client’s needs. We

truly understand the importance of market timing in futures, which is why we empower our

clients with in-depth, real-time and inductive research and analytics required to make the right

trading decisions.

Why trade in currency derivative?

Highly liquid asset

Extended trading hours - 9 am to 5 pm

Opportunities to reap benefits by trading at a global level and in a highly dynamic market

Affordable and small lot size contract( USD $1000 only ) with low exchange specified

margins

Our services enrich your trading experience with -

A qualified and experienced currency research team, providing you market insights for

fruitful trading

Flexible trading platform for online/offline clients

A dedicated team of advisors to help you play hedged strategies in Currency

Nationwide presence with high market penetration

We at Religare provide you premium services to have an all together new and

unique experience

Flexible trading platforms for online/offline clients

Technical and fundamental research to make your decisions easy

Expert advice to strategize your trades

Reduced different brokerage plans

GOLD

Gold has always been a source of great interest and attraction by the human race. From Ancient

Egyptians to the “Golden Bird” India, gold’s glitter has attracted people across continents. Gold

has been used in jewelry, money, coins, artifacts, standard for currency, medical treatment,

lasers, and space over the ages.

India is the world''s largest consumer of gold, as Indians buy about 25% of the world''s gold,

purchasing approximately 800 tons of gold every year. India was also the largest importer of the

yellow metal; in 2008, India imported around 400 tons of gold.

Approximately 10 million marriages occur in India every year and gold is used for gifting

purposes and as ornaments. Agriculture is the base of Indian economy and physical gold is

popular among farmers as well. Gold jewelry sales spurt after a bumper crop. Affluent people

generally present gold ornaments during DHANTERAS and AKSHAYA TRITYA in their

family. Gold symbolizes progress, excellence, power, strength, wealth, warmth, happiness, love,

hope, optimism, intelligence, justice, balance, perfection, the sun. Gold is a safe investment for

both, poor as well as the rich.

Recent years have seen a striking increase in investor interest in gold. While a sustained price

rally, underpinned by the fact that demand consistently outstrips supply, is clearly a positive

factor in this resurgence, there are many reasons why people and institutions around the world

are once again investing in gold. This website provides you with the background to these reasons

and describes the defining characteristics of the gold market from an investor''s point of view.

ADVANTAGES OF GOLD AS AN INVESTMENT

OPPORTUNITY

During those days of economic meltdown and volatile movements on stocks and commodities

markets, what was the best avenue of investment? For the Indian investors, the biggest

investment route is indeed gold, says a new survey. Most Indians prefer to put their money in the

yellow metal. There is a sentimental and tangible value which is added to the physical possession

of gold especially in the form of gold coins or small bars. Handling of Gold coins is not difficult

as they are not very heavy and even very small quantities can be held.

It is globally accepted fact that gold is a commodity which is in limited supply and the demand is

ever increasing. Hence the basics of economics apply here that the price of the commodity will

go on rising as long as the demand is more than the supply.

RCL negotiates the best price for your gold after research analysis. The rarity and condition of

gold has a significant impact on how much cash you will get. Some are worth much more than

their weight in gold.

Investing in Gold provides:

LIQUIDITY - Gold and Gold Coin''s great strength is its "same as cash" quality. Gold

is liquid anywhere in the world, and funds from gold are quickly available.

SAFETY - Gold investment is one of the safest assets in existence, whereas securities

and real estate are often unpredictable. Gold is well-positioned to benefit from a world

event, and is so sheltered it is used to place capital in the safest possible place.

PRIVACY - Gold are private, compact, and easy to store. Selected gold types have

little or no reporting requirements, and older gold is nearly impossible to follow.

SELF-RELIANCE - Gold Investment is independent of outside factors. It requires no

auditor or outside solvency. Gold is not dependent on marketing, productivity,

government or harvest.

GROWTH - Gold has the potential to outperform any other investment. The upside on

gold can be substantial, especially if gold is accumulated while it is inexpensive. Take

advantage of low prices, as they do not imply problems. Volume and consumption rise

with low prices and eventually prices move up.

PERSONAL SECURITY - Gold''s immunity from chaos and risk is why central banks

keep it. For a secure financial foundation, holding approximately 15% of your portfolio

in gold will provide a formidable safety net.

INSURANCE - Gold creates a natural insurance policy; however, physical gold is

necessary for reliable protection (even gold stocks can suffer in a bear market). The

same issues that hurt the markets positively trigger gold

In a highly disorganized Gold market, the purity aspect and thereby the value for one’s

money during the purchase of gold has always been a question mark. For the customer,

the lack of access to a branded, affordable, reliable Gold coin has always been a matter

of concern. That is where Religare comes in.

Coins are available in lower denominations for the common man.

Religare offers 2 gm,5 gm, 8 gm and 10 gm gold coins with quality 999 at competitive

prices

Tamper proof packing by MMTC assures purity check.

Positive tolerance in our Gold coins up to +0.02

There is no need to follow age-old tradition of biting gold to test its authenticity, as

Religare provides a certificate of purity from MMTC.

These Gold coins are ideal for customers or corporate to be used as a gifting idea, for

retail/agent contests, as employee rewards etc. Retail customers buy these coins just for

the pleasure of owning it or as an investment idea.

MUTUAL FUNDS

Mutual Funds offer an opportunity for long term wealth creation. At RSL we ensure that your

investments are in safe hands backed by quality research and based on the needs of the client

according to his income, savings, age, family background etc.

With our Mutual Fund Service System, an order collection system provided by National Stock

Exchange (NSE), you can place subscription or redemption requests for mutual fund units. You

can buy and sell Mutual Fund units during the trading hours through simple telephonic

instructions.

You no longer have to await the status of your application from AMC or fund house, instead you

can track your request through our online interface and even modify the request until the time it

is accepted by the mutual fund. Reduced time lags and transparency in procedures empower our

investors to make timely and optimal investment decisions.

Securities Exchange Board of India (SEBI) vide circular SEBI/IMD/CIR No. 11/ 183204/2009

dated November 13, 2009 allowed transactions in Mutual Fund schemes through the Stock

Exchange infrastructure. Units of Mutual fund Schemes have been permitted to be transacted

through registered Stock Brokers of recognized Stock Exchanges. With this the Stock Exchange

mechanism extends the present convenience available to secondary market investor to mutual

fund investors. This will give distributors and brokers a level- playing field with banks in

enabling clients to invest in mutual fund and enable to expand the reach of mutual fund schemes

to more towns and cities

IPO

An Initial Public Offering (IPO) is the selling of securities to the public in the primary market.

It is when an unlisted company makes either a fresh issue of securities or an offer for sale of its

existing securities or both for the first time to the public. This paves way for listing and trading

of the issuer’s securities. The sale of securities can be either through book building or through

normal public issue.

Who decides the price of an IPO?

The issuing company in discussion with the lead merchant banker (the institutions upon which

rests the entire responsibility of managing the issue) decides the price. There is no set price

formula prescribed by SEBI. However the company and the lead banker are required to give full

explanation of the key assumptions taken into consideration while deciding the issue price. In

practice, there are two types of issues, one where the company and Lead Merchant Banker fix a

price (called fixed price) and other, where there is a price band and rest is left to market forces to

determine the final price.

What does ‘price discovery through Book Building Process’ mean?

Book Building is basically a process used in IPOs for price discovery of an offer. It is a method

where, during the period for which the issue is open, different categories of investors apply at

various prices based on their judgement, within the price band. The cut off is determined after

the bid is closed to public.

What is Cut-Off Price?

In a Book building issue, the company that wishes to tap stock market for fresh funds is required

to indicate the price band. The actual discovered issue price can be any price in the price band.

This issue price is called ‘Cut-Off Price’. The issuer and lead manager, which is managing the

issue, decides the cut off price after considering the issue size and the investors’ desire for the

stock.

Process

One needs to have a demat account

Make available the copy of PAN card

Other basic essentials such as address proof, bank details and contact details also

required

We also provide you with latest news about the upcoming and current IPO’s including

their listing dates. Our analysts also offer investment advice based on thorough

fundamental research of the currently open IPO’s.

DERIVATIVES

The Derivative segment is a highly lucrative market that gives investors an opportunity to earn

superlative profits (or losses) by paying a nominal amount of margin. Over past few years,

Future & Options segment has emerged as a popular medium for trading in financial markets.

Future contracts are available on Equities, Indices, Currencies and Commodities.

Since derivatives instrument provide good leverage opportunity, it is a great tool for speculation.

Leverage is a double edge sword for which one requires an equity advisor. Our advisors will also

help you with various strategies like Bull Spread, Bear Spread, Cover call writing, hedging

strategies etc. This is to help you to make better trading returns. The Equity advisor goes a step

further to ensure that your trades are settled and traded with proper margin in your account in a

timely manner. This allows us to give you a convenient single window service and your advisor

becomes the single point contact for all your equity related matters.

INTRODUCTION TO PROJECT

INTRODUCTION OF E-SPOT

INVESTING IN E-GOLD AND E-SILVER

E-investing is revolutionising the investment space for Indians. It is bringing in opportunities for

them to participate in the growth story of commodities by allowing them to move funds into

commodities in smaller denominations and holding them in the electronic, that is, dematerialised

form. Its uniqueness lies in buying, accumulating, holding and liquidating commodities as well

as converting them into physical units in a seamless manner.

Indians are great savers, but awful investors. Our savings ratio is at a high 29 per cent of the

gross domestic product (GDP), but a meager 6 per cent of these household savings finds its way

into wealth generating equity markets, showcasing our inability to make the transition from

savers to efficient investors. Our gold investing habits show a similar theme. Indians are the

largest buyers of gold in the world. But, here is where we go wrong. Most of our gold purchases

are in the form of jewellery. While they may look nice and make you look rich when you wear

them, as a means of financial investment, they are pretty useless. The amount of charges that

the jewellery passes on in the form of design and making costs are high; if you sell that

necklace or ring, you will get a fraction of the price you paid for it.

INTRODUCING E-GOLD AND E-SILVER

Mass participation of retail investors in commodities is still absent. Futures contracts carry high

risk and are products which few of us understand. E-gold and e-silver, launched by National

Spot Exchange (NSEL), are all about investing in gold/silver in both the dematerialised and

physical forms. Just as you can trade equities in the stockmarket, here, too, you can make an

online transaction. On purchase, units of e-gold or e-silver get credited to the buyer's demat

account; the underlying unit of physical gold/silver is stored in the exchange's vault. Looking at

various parameters-ease of transaction, cost of purchase, returns and safe-keeping-e-gold and e-

silver seem to be the smarter way of saving in these alternate forms of investments.

WHY E-GOLD OR E-SILVER?

Holding gold or silver in demat form;

Opportunity for retail investors to diversify portfolio;

No worry for daily MTM pay-in/payout as in derivative buying;

No risk of theft. Purchase in safe custody;

Hassle-free and low-cost investing; and

High liquidity at low costs.

INVESTING IN GOLD

Why invest in gold? Gold, a symbol of wealth, has been traditionally considered as a hedge

against inflation, mostly moving in tandem with rising inflation and inversely with the dollar.

Gold is a highly effective portfolio diversifier due to its low-to-negative correlation with all

major asset classes. Over the last 20 years, gold has shown no statistically significant correlation

with equities. The fundamental reason for this low correlation is that the factors driving gold

price are not the same as the ones that determine the returns on other assets. While, as a rule,

gold shows no statistically significant correlation with mainstream asset classes, there is,

however, evidence that when equities are under stress-in other words, when shares are falling

rapidly in value-an inverse correlation can develop between gold and equities.

The value of goods and services that gold can buy has remained largely stable, unlike currencies,

which have seen significant fluctuation.

A study spanning a 400-year period has shown that the basket of goods and services that gold

could buy over the period has remained the same. Gold protects your portfolio from volatility

because the factors-both at the macroeconomic and microeconomic fronts-that affect the returns

from most asset classes do not significantly influence the price of gold.

For a given level of returns from a portfolio, the risk or volatility can be reduced by adding gold

to it. Similarly, tumultuous situations, such as a global economic crisis across countries and

currencies, or even an occurrence of war, which have a negative impact on prices of most asset

classes, have a positive impact on gold prices. This is because the demand for gold goes up as a

safe haven for parking funds. It is the only medium of exchange completely free of credit risk as

it does not imply a liability for any other entity.

The US dollar may lose its sheen amid the burgeoning US trade deficit and the country's mind-

boggling borrowings to finance the same. In addition, many countries are planning to reduce

their reliance on the dollar and diversify their foreign currency reserves. There certainly seems to

be a trend towards increased diversification of reserve assets, away from what is seen as a dollar

in decline, with gold probably being a major beneficiary.

Inflation could be another trigger which may intensify as a result of government deficits and

loose monetary policies around the world, Inflation has historically been fuelling gold prices as

investors seek to safeguard their wealth against rising inflation, Another factor to be noted is the

introduction and growing popularity of gold exchange-traded funds (ETFs) which have changed

the market in a very important way. By facilitating gold investments and ownership, ETFs have

brought significant numbers of new participants into the market These ETFs shall continue to

drive gold prices higher.

WHY GOLD

The reasons why gold should form a part of your portfolio are many. Here are some of them:

Gold improves the stability and predictability of portfolio returns. It is not correlated with

other assets because gold price is not necessarily driven by the same factors that are

responsible for driving the performance of other assets.

Adding gold to a portfolio introduces an entirely different class of asset. Gold is unusual

because it is both a commodity and a monetary asset.

Gold is one of the few financial assets that is not linked to a liability. It can provide

'insurance' against extreme movements on the value of traditional asset classes.

DEMAND AND SUPPLY FACTOR

Understanding the dynamics in the bullion market is easy and difficult at the same time. The

easy argument is that it is a simple economic theory of demand and supply. The complexity is

that the various factors that influence demand and supply of gold are themselves dynamic. The

basic fact is that gold prices are going through the roof because of high demand and stable-to-

low supply.

Global demand for gold is 1,000 tonnes more than the supply. With no new mining capacity

being discovered, most of the gold is being recycled. Inflationary pressures in the world

economy are positive drivers of gold prices. The central banks of Russia, China and West Asian

countries are giving strong buying support to gold prices. The total gold supply is fragmented

into mining supply, scrap sales and central bank sales. Scrap sales are sourced from old

fabricated products that have been recovered and refined back into bars. Mine production

contributes nearly 60 per cent to the overall supply side while scrap accounts for 26 per cent with

the remaining 14 per cent is sold by the central banks.

According to the World Gold Council, there are more than 400 gold mines operating in the

world. Gold mining is relatively inelastic and, hence, the overall level of global mine production

has been relatively stable, averaging approximately 2,481 tonnes per year since 2005. This

means there has not been any significant expansion in the global supply. The yellow metal has its

demand spread across the

world and 55 per cent of total gold demand across the globe is at tributable to just five countries-

India, Italy, Turkey, the US and China though not in any particular order.

China is increasingly making its presence felt in this area and is all set to surpass India in terms

of gold demand. Though, it may do so in terms of consumption, but it won't be able to surpass

India in terms of imports because China is also among the top gold producing countries.

Moreover, prices have shot up because key gold producers across the world have been

implementing a major dehedging exercise. It involves a gold producing company buying back its

"hedged" gold in expectation of price rises. The producers are accelerating the process of buying

back hedges to get full exposure to the metal in anticipation that prices will rise further.

In most industries, rising demand kicks off an increase in supply that brings prices down. But

gold is often less than responsive as new supply is limited and prospects of a sudden flush of

new gold are slim. There have been no new large discoveries of gold. Investment in the recent

past for exploration has been insignificant. Even if a new mine is discovered, it will be about

10 years before the first ounce of gold from it sees the light of the day. The upward trend in

the annual production is now levelling off. Independent analysts are of the belief that mine

output will remain flat for the next few years and may even drop slightly.

INDIAN SCENARIO

The passion for gold in India has strong historical, cultural, and economic underpinnings. For

centuries, gold has been equated with money, savings, riches, and status in India. India has been

known to possess large stocks of gold, which are mostly accumulations from centuries of imports

rather than a result of production from its own mines. Even today, domestic production only

serves a small fraction of India's consumption requirements.

Globally, India is ranked sixth in the top-10 list of the gold and currency reserves: The first three

positions are being held by Japan, Russia and China, respectively. India consumes anywhere

between 600 to 700 tonnes of gold annually.

But domestic production of gold is only about 2 tonnes per annum. India is the highest consumer

of gold mainly because of religious factors and a traditional fascination for this yellow metal.

The consumption is leading to higher imports of gold as India doesn't produce enough of it to

meet its requirements. India needs a huge investment in gold mining sector as it mines only 0.4

per cent of its total demand despite having 8 per cent of total world gold reserves under its land

mass.

INVESTING IN SILVER

Why invest in silver? Silver has traditionally been considered the poorer cousin of gold. Most

Indians who are dedicated investors in gold have shied away from investing in this other

precious metal. But, with gold prices at their all-time highs and silver prices still a distance away

from theirs', it's time to take another look at silver.

Silver is often compared to gold as a precious metal, but what makes it such an interesting

investment is its industrial use. Largely a by-product of zinc, lead, copper and gold mines, silver

has an intrinsic value because of its natural industrial demand.

While gold and silver prices have tended to follow each other over time, silver, over a long

historical period, has outperformed gold (by about a percentage point annually in rupee prices).

That said, silver also has comparatively higher risk than gold. In fact, it can be considered a

geared play on gold because silver prices outperform gold prices on the upside, and crash more

quickly on the downside.

DEMAND AND SUPPLY FACTOR

Silver is a metal that is associated with metals such as gold, lead, zinc and copper, though its

unusual properties make it very different from them. It is used in making various kinds of

jewellery it is considered a precious metal second to gold, but its contribution in the various

industrial sectors as a raw material makes it unmatchable. No other metal can replace silver as it

has an endless number of uses.

Silver is produced throughout the world. However, an interesting fact is that the primary source

of silver is not the silver mines, but the other sources of silver. Silver mines produce a small

amount of silver that is 25 per cent of the world's total production and the rest of it is derived as a

by-product from gold mines (15 per cent) copper mines (24 per cent), lead and zinc mines (34

per cent) and other sources. The total production of silver in the world figures to be around 615

million ounces and Mexico is the leading silver producing country. The total demand of silver in

the world amounts to around 29,000 tons.

The rally in silver prices has recently been driven by investment demand in the safe havens like

the still-recovering US and Europe economies. In addition, industrial demand for silver for

emerging markets is increasing the prices. Locally, the demand for silver is influenced by eco-

nomic growth and the monsoons. Its prices, in comparison to gold, have been more sensitive to

business cycle fluctuations, while gold, a store of value, has been less sensitive.

INDIAN SCENARIO

India hardly produces any silver and is primarily a silver importing country. It holds the 20th

place in the list of silver producing countries and the total production of silver in India in 2009

was around 7.3 million ounces. Over 50 per cent share of import of silver in India is held by

Chinese silver. In India, investors have limited ways to take exposure to silver. While gold ETFs

are popular, asset managers are not allowed to hold silver directly in ETF or MF form, leaving

investors no choice but to buy silver futures. Also, jewellery has been a big source of demand for

silver and, in fact, with gold prices at their current levels, more and more Indian jewellers are

increasing the amount of silver used in jewellery.

SCOPE OF THE PROJECT

1. Religare has been launched a new product of E-spot in which, there is an investment of

gold and silver, that is beneficial for the awareness for a new product.

2. People have good opportunity for the investment in gold and silver metals.

3. There are no chances of expiry dates.

4. We can start investment from 1gram…….means a small investor also can easily invest…

there is no need of larger investment.

5. It is Hassle-free and low-cost investing, High liquidity at low costs.

OBJECTIVES OF THE PROJECT

1. The main objective of the project is to know about the features of Religare E-Spot.

2. To aware the customers about the benefits of E-Spot.

3. To know about the Low Risk Trading of commodities

4. To study the risk of theft. Purchase in safe custody

5. To study the where customer should invest gold or silver.

RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem. The Research

Methodology includes the various methods and techniques for conducting a Research.

“Marketing Research is the systematic design, collection, analysis and reporting of data and

finding relevant solution to a specific marketing situation or problem”. Research is, thus, an

original contribution to the existing stock of knowledge making for its advancement. The

purpose of Research is to discover answers to the Questions through the application of scientific

procedures. Our project has a specified framework for collecting data in an effective manner.

Such framework is called “Research Design”. The research process followed by us consists of

following steps:

Research Design: -

Descriptive Research: -A type of conclusive research, which has as its major objective the

description of something-usually market characteristics or functions. In other words descriptive

research is a research where in researcher has no control over variable. It just presents the

picture, which has already studied.

Sample Design: -Sampling can be defined as the section of some part of an aggregate or totality

on the basis of which judgment or an inference about aggregate or totality is made. The sampling

design helps in decision making in the following areas: -

Sample frame-Sample frame was Kotak Mahindra Bank.

Sample size- Sample size is the number of elements to be included in a study. Keeping in

mind all the constraints 50 respondents were selected.

Sample unit- Sampling unit is the basic unit containing the elements of the universe to

be sampled. The sampling unit of our study is general public.

Sampling Techniques- The sampling techniques used were convenience technique and

simple random sampling technique.

Data Collection and Interpretation: - Research work is exploratory in nature.

a) Sources of data collection: Information has been collected from both Primary and Secondary

sources of data collection.

Primary sources- Primary data are those, which are collected are fresh and for the first

time, and thus happen to be original in character. Primary data had been collected by

conducting surveys through questionnaire, which include both open- ended and close-

ended questions and personal and telephonic interview.

Secondary sources- Secondary data are those, which have already been collected by

someone else, which already had been passed through the statistical process. Secondary

data had been collected through websites, newspapers and journals.

b) Tools of Data Analysis and Presentation:

To analyze the data obtained with the help of questionnaire.

LIMITATION OF THE STUDY

However I shall try my best in collecting the relevant information for my research report, yet

there are always some problems faced by the researcher. The prime difficulties which I face in

collection of information are discussed below:-

1. Short time period: The time period for carrying out the research was short as a result of

which many facts have been left unexplored.

2. Lack of resources: Lack of time and other resources as it was not possible to conduct

survey at large level.

3. Unwillingness of respondents: While collection of the data many consumers were

unwilling to fill the questionnaire. Respondents were having a feeling of wastage of time

for them.

4. Small area for research: The area for study was Bathinda, which is quite a small area to

judge job satisfaction level.

BIBLIOGRAPHY

WEBSITES

www.religareonline.com www.religare.in

BOOKS

Religare E-Spot Pocket Book