1 Project on Religare

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1 PROJECT ONCUSTOMER RELATIONSHIP MANAGEMENTWITHRELIGARE SECURITIES LTD(REGIONAL OFFICE, BMCC ROAD, PUNE)MASTER OF BUSINESS ADMINISTRATION (MBA)(MARKETING)SUBMITTED IN PARTIAL FULFILLMENTS OFREQUIREMENTS FOR AWARD OFMASTER OF BUSINESS ADMINISTRATION OF TILAKMAHARASHTRAUNIVERSITY, PUNE

Submitted ByMd. Junaid Y. DhariwalaPRN:Of PAI International Centre for Management Excellence, PuneTilak Maharashtra UniversityGultekdi, Pune 4110372

Tilak Maharashtra University, Pune(Deemed Under Section 3 of UGC Act 1956 Vide NotificationNo. F.9-19/85- U3 dated 24 th April 1987 By the Government of India.)Vidyapeeth Bhawan, Gultekdi, Pune - 411 037.

CERTIFICATEThis is to certify that the project titled Customer RelationshipReligare Securities Ltd, Pune Is a bonafide work carried out MD. Junaid Y. Dhariwala a student of Master of Business AdministrSemester 3 rd , Specialization Marketing.P.R.N. _____ Under Tilak Maharashtra University in the year Head of Department Examiner Examiner Internal ExternalDate:Place: University Seal3

ACKNOWLEDGEMENT


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It is said, the most important single word is WE and the zero important single word is I. Thistrue even in todays modern era. It is absolutely impossible for a single individual to completethe assigned job without help and assistance from others.It is my greatest pleasure to acknowledge sincere gratitude towards Mrs. Priya Venkatraman(Sr. Relationship Manager) Religare Securities Ltd., Pune, for the completion of the project

work.I would also like to acknowledge to my sincere gratitude to our Director Prof . R Ganesan andmy project guide Prof. Roshan Kazi for helping me in this project work.I am thankful to all of my friends and batch mates for their help in completing this project work.Finally, I am thankful to my entire family members for their great support and encouragement.Md. Junaid Dhariwala4

TABLE OF CONTENTSChapter 1. Rationale of the Study.Chapter 2. Objectives of the study.

Title of the project

Objective of the studyScope of the study

Chapter 3. Profile of the company.Chapter 4. Review of Literature.Chapter 5. Research Methodology

Research DesignData Collection Methods / SourcesSampling Plan which should include sampling unit, sampling size and sampling

methods viz. questionnaire methods interview methods observation etc.

Chapter 6. Data Analysis and interpretations using various charts and graphsChapter 7. FindingsChapter 8. Limitations (if any)Appendix

Copies of questionnaireCopies of form or any from the companyBibliography

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CHAPTER 1.RATIONALE OF THE STUDY6

RATIONALE OF THE STUDYCustomer Relationship Management (CRM) is a business approach which recognizes theimportance of customers as the driving force behind the success of failure of any business. Itenables the business organization to maintain, analyze and act upon the information which thebusiness identifies as relevant to improve its relationships with the customer, and thus enhanceits chances of success.


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Customer Relationship Management (CRM) helps companies improve the profitability of theirinteractions with customers while at the same time making the interactions appear friendlythrough individualization and personalization of services. This management includes DataMining with the help of which Customer Life Cycle can be managed well in Acquiring newcustomers, increasing value of the customers, retaining good customers.

The basic steps of Data Mining for effective CRM are:1. Define Business Problem

2. Build Marketing Database

3. Explore Data

4. Prepare data for modeling

5. Build Model

6. Deploy model and results7The company can then use the information to learn about the behavior of its customers andimprove the way it does a business. It can look at recurring complaints from multiple customersto solve a problem which would otherwise go unchecked with a normal formats and managementsystem of the company.The main objective of my project is to find effective solution for the Customer RelationshipManagement and accordingly increase the credibility and profitability of the company. Thisstudy is more related to consumer behavior and perception about the facilities and convenienceprovided by the company, Customer Satisfaction is emphasized in this management.

o Helping an enterprise to enable its marketing departments to identify and target theirbest customers, manage marketing campaigns with clear goals and objectives, and generatequality leads for the sales team.

o Assisting the organization to improve telesales, account, and sales management byoptimizing information shared by multiple employees, and streamlining existing processes (forexample, taking orders using mobile devices)

o Allowing the formation of individualized relationships with customers, with the aim of improving customer satisfaction and maximizing profits; identifying the most profitablecustomers and providing them the highest level of service.

o

Providing employees with the information and processes necessary to know theircustomers, understand their needs, and effectively build relationships between the company, itscustomer base, and distribution partners.8

CHAPTER 2.OBJECTIVE OF THE STUDY9


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OBJECTIVES OF THE PROJECTA. Title of the project:

Customer Relationship Management (CRM) with Religare SecuritiesB. Objective of the Study:

The objective of the project was to analyze Effective Customer Relationship Management for Religare Securities Ltd., Pune for that we have to understand current CRM System and Servicesprovided from the company and its effect on Customer Needs, Satisfaction Level, their responseand emotions. The objective of this study to analyze existing customer satisfaction as thosecustomers are the key sources to new customers with respect to the performance, sales effortsand sales service.As the company stands second in India in aspect of turnover after Kotak Mahindra Securities,its c lear that it has very strong Customer Relationship Management System and perfect peopleto handle it properly for the benefit of customers and company as well.

Actual and personal meeting with existing customers and employees has brought me to thereality of the effectiveness of the system and their success. For analyzing the same factor I stakedmy whole duration of the project and simultaneously for internal study and market watch andother group assignments.10Questionnaire is based on the existing services and the satisfaction level of the existingcustomers which includes questions like Name, Age, Gender, Income, Investment Frequency,feedback about services which they are provided like conformation, calls, suggestions, solutionson stuck money like dead investment and all.On an average all the customers are happy with the company and look forward to the growth of it.

C. Scope of the study:

Scope the this study is it will assist Religare to get its own Customer Relationship Managementsystem mirror well and it will get all the important things before eyes to apply all the possibleways to provide a superb service to the customers and accordingly make them loyal and retainthem long lasting and also to get new customers to be served. Scopes can be stated in few pointsas follows.

o Maintain current / existing customers.

o Achieve new potential customers.

o Retain all the customers.

o Profitability Increment

o Reputation and credibility Increment, etc.11The heart of CRM is not being customer centric but rather to use customer profitability as adriver for decision making and action. Before exploring this assertion, it is useful to review the


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process of resource allocation as it is practiced in most organizations. The budget process largelyconsists of an extrapolation of the past. Resource constraints pit function against function withback room deals that are based on internal politics versus the marketplace. This decision processhas little insight as to what is working and what is not working (as it applies to the marketplace)or for that matter why? Without insight relative to cause and effect, the organization has no

choice but to follow intuition and anecdote. It is analogous to the story about the marketing VPwho admitted that half the advertising budget was wasted; the problem was he did not knowwhich half.12

CHAPTER 3.PROFILE OF THE COMPANY13

Profile of companyReligare Enterprises Limited (REL):

Religare, a Ranbaxy promoter group company, is one of the leading integratedfinancial services institutions of India. The company offers a large and diversebouquet of services ranging from equities, commodities, insurance broking, towealth advisory, portfolio management services, personal finance services,Investment banking and institutional broking services. The services are broadlyclubbed across three key business verticals- Retail, Wealth management and theInstitutional spectrum. Religare Enterprises Limited is the holding company for allits businesses, structured and being operated through various subsidiaries.Religares retail network spreads across the length and breadth of the country withits presence through more than 1,217 locations across more than 392 cities andtowns. Having spread itself fairly well across the country and with the promise of not resting on its laurels, it has also aggressively started eyeing global geographiesReligare Enterprises Limited (REL) is one of the leading integrated financialservices groups of India. RELs businesses are broadly clubbed across three keyverticals, the Retail Institutional and Wealth spectrums, catering to a diverse andwide base of clients. The vision is to build Religare as a globally trusted brand inthe financial services domain and present it as the Investment Gateway of India .14

All employees of the group guided by an experienced and professional

management team are committed to providing financial care, backed by the corevalues of diligence and transparency. REL offers a multitude of investment optionsand a diverse bouquet of financial services with its pan India reach in more than1800 locations across more than 490 cities and towns. REL operates globallyfollowing its acquisition of Londons oldest brokerage and investment firm,Hichens, Harrison and Co. plc. With a view to expand, diversify and introduceofferings benchmarked against global best practices, Religare operates its Life


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Insurance business in partnership with the global major- AEGON. For its wealthmanagement business Religare has partnered with Australia based financialservices major- Macquarie. Religare has also partnered with Vistaar Entertainmentto launch Indias first SEBI approved Film Fund offering a unique alternative assetclass of investments.Religare Securities Limited (RSL), a 100% subsidiary of Religare EnterprisesLimited is a leading equity and securities firm in India. The company currentlyhandles sizeable volumes traded on NSE and in the realm of online trading andinvestments; it currently holds a reasonable share of the market. The majoractivities and offerings of the company today are Equity Broking, DepositoryParticipant Services, Portfolio Management Services, International Advisory FundManagement Services, Institutional Broking and Research Services. To broadenthe gamut of services offered to its investors, the company offers an onlineinvestment portal armed with a host of revolutionary features.15

o RSL is a member of the National Stock Exchange of India, BombayStock Exchange of India, Depository Participant with National SecuritiesDepository Limited and Central Depository Services (I) Limited, and is a SEBIapproved Portfolio Manager.

o Religare has been constantly innovating in terms of product and servicesand to offer such incisive services to specific user segments it has also started theNRI, FII, HNI and Corporate Servicing groups. These groups take all the portfolioinvestment decisions depending upon a clients risk / return parameter.

o Religare has a very credible Research and Analysis division, which notonly caters to the need of our Institutional clientele, but also gives their valuableinputs to investment dealers.

Trading in Equities with Religare truly empowers you for your investment needs.We ensure you have superlative trading experience through 16

-class dealing rooms

Further, Religare also has one the largest retail networks, with its presence in morethan 1800* locations across more than 490* cities and towns. This means, you can


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walk into any of these branches and connect to our highly skilled and dedicatedrelationship managers to get the best services.The Religare Edge

o Pan India footprint

o Powerful research and analytics supported by a pool of highly skilledresearch analysts

o Ethical business practices

o Single window for all investment needs through your unique CRN17

Religare Enterprise Limited, through its subsidiaries, offers a range of integratedfinancial products and services to retail inventors, high net worth individuals, and

corporate and institutional clients in India. It operates in three divisions: RetailSpectrum, Wealth Spectrum, and Institutional Spectrum. The Retail Spectrumdivision offers equity brokerage, commodities brokerage, personal financialservices, including insurance brokerage and mutual fund distribution; internettrading; loans against shares; and personal loans. The Wealth Spectrum divisionprovides portfolio management services, wealth advisory services, and privateclient equity services, such as international equity services. The company wasformerly known as Religare Enterprises Private Limited and changed its name toReligare Enterprises Limited in July 2006. The company was incorporated in 1984and is based in New Delhi, India.18

Industry Profile19

Industry ProfileWhile regulation and reforms have made major improvements in the quality of theequity markets in India, its rapid growth and development are largely due to strongand efficient market intermediation. The robustness of the Indian markets today isattributable to a healthy blend of the quality of market Structure and efficientintermediation. Even as several countries are instituting procedures to commence.Equity derivative markets, India ranks amongst the top five countries globally inthis segment, in less than five years of its introduction. This is an example of theproactive and progressive nature of the Indian brokerage industry.In the last decade, the Indian brokerage industry has undergone a dramatictransformation. From being made of close groups, the broking industry today isone of the most transparent and compliance oriented businesses. Long settlement


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cycles and large scale bad deliveries are a thing of the past with the advent of T+2(Trading day + 2 days) settlement cycle and dematerialization. Large and fixedcommissions have been replaced by wafer thin margins, with competition drivingdown the brokerage fee, in some cases, to a few basis points.20

There have also been major changes in the way business is conducted. Technologyhas emerged as the key driver of business and investment advice has becomeresearch based. At the same time, adherence to regulation and compliance hasvastly increased. The scope of services have enhanced from being equity productsto a wide range of financial services. Investor protection has assumed significance,and so has providing them with education and awareness. Greater need forcapitalization has induced several firms to access the capital market; foreign firmsare showing increasing interest in taking equity stakes in domestic broking firms.Major developments in equity brokerage industry in India:

1. Corporate memberships

There is a growing surge of corporate memberships (92% in NSE and 75% inBSE), and the scope of functioning of the brokerage firms has transformed fromthat of being a family run business to that of professional organized function thatlays greater emphasis on observance of market principles and best practices. Withproliferation of new markets and products, corporate nature of the memberships isenabling broking firms to expand the realm of their operations into otherexchanges as also other product offerings. Memberships range from cash market toderivatives to commodities and a few broking firms are making forays intoobtaining memberships in exchanges outside the country subject to theiravailability and eligibility.21

2. Wider product offerings

The product offerings of brokerage firms today go much beyond the traditionaltrading of equities. A typical brokerage firm today offers trading in equities andderivatives, most probably commodities futures, exchange traded funds, distributesmutual funds and insurance and also offers personal loans for housing,consumptions and other related loans, offers portfolio management services, andsome even go to the extent of creating niche services such as a brokerage firmoffering art advisory services. In the background of growing opportunities forinvestors to invest in India as also abroad, the range of products and services willwiden further.In the offing will be interesting opportunities that might arise in the exchangeenabled corporate bond trading, soon after its commencement and futures trading


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that might be introduced in the near future in the areas of interest rates and Indiancurrency.22

3. Greater reliance on research

Client advising in India has graduated from personal insights, market tips tobecoming extensively research oriented and governed by fundamentals andtechnical factors. Vast progress has been made in developing company researchand refining methods in technical and fundamental analysis. The research andadvice are made online giving ready and real time access to market research forinvestors and clients, thus making research important brand equity for thebrokerage firms.

4. Accessing equity capital markets

Access to reliable financial resources has been one of the major constraints facedby the equity brokerage industry in India since long. Since the banking system isnot fully integrated with the securities markets, brokerage firms face limitations inraising financial resources for business and expansion. With buoyancy of the stock markets and the rising prospects of several well organized broking firms, importantopportunity to access capital markets for resource mobilization has becomeavailable. The recent past witnessed several leading brokerage firms accessingcapital markets for financial resources with success.23

5. Foreign collaborations and joint ventures

The way the brokerage industry is run and the manner in which several of thempursued growth and development attracted foreign financial institutions andinvestment banks to buy stakes in domestic brokerage firms, paving the way forstronger brokerage entities and possible scope for consolidation in the future.Foreign firms picked up stake in some of the leading brokerage firms, which mightlead to creating of greater interest in investing in brokerage firms by entities inIndia and abroad.

6. Specialized services/niche broking

While supermarkets approach are adopted in general by broking firms, there aresome which are creating niche services that attract a particular client group such asday traders, arbitrage trading, investing in small cap stocks etc, and providingcomplete range of research and other support to back up this function.

7. Online broking


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Several brokers are extending benefits of online trading through creation of separate windows. Some others have dedicated online broking portals. Emergenceof online broking enabled reduction in transaction costs and costs of trading. Keencompetition has emerged in online broking services, with some of these offeringtrading services at the cost of a few basis points or costs which are fixed in natureirrespective of the volume of 24

trading conducted. A wide range of incentives are being created and offered byonline brokerage firms to attract larger number of clients.

8. Compliance oriented

With stringent regulatory norms in operation, broking industry is giving greateremphasis on regulatory compliance and observance of market principles and codes

of conduct. Many brokerage firms are investing time, money and resources tocreate efficient and effective compliance and reporting systems that will help themin avoiding costly mistakes and possible market abuses. Brokerage firms now havea compliance officer who is responsible for all compliance related aspects and forinteracting with clients and other stake holders on aspects of regulation andcompliance.

9. Focus on training and skill sets

Brokerage firms are giving importance and significance to aspects such as trainingon skill sets that could prove to be beneficial in the long run. With the nature of markets and products becoming more complex, it becomes imperative for thebroking firms to keep their staff continuously updated with latest development inpractices and procedures. Moreover, it is mandated for certain types of dealers/brokers to seek specific certification and examinations that will make themeligible to carry business or trade. Greater emphasis on aspects such as researchand analysis is giving scope25

for in-depth training and skills sets on topics such as trading programs, valuations,economic and financial forecasting and company research.

10. From owners to tradersA fundamental change that has taken place in the equity brokerage industry, whichis a global trend as well, is the transformation of broking from owners of the stock exchange to traders of the stock market. Demutualization and corporatization of stock exchanges bifurcated the ownership and trading rights with brokers vestedonly with the later and ownership being widely distributed.


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Demutualization is providing balanced welfare gains to both the stock exchangesand the members with the former being able to run as corporations and the latterbeing able to avoid conflict of interests that sometimes came as a major deterrentfor the long term growth of the industry.Emerging challenges and outlook for the brokerage industry .Brokerage firms inIndia made much progress in pursuing growth and building professionalism inoperations. Given the nature of the brokerage industry being very dynamic,changes could be rapid and so as the challenges that emerge from time to time. Abrief description on some of the prospects and challenges of the brokerage firmsare discussed below.26

11. Fragmentation

Indian brokerage industry is highly fragmented. Numerous small firms operate in

this space. Given the growing importance of technology in operations andincreasing emphasis on regulatory compliance, smaller firms might find itconstrained to make right type of investments that will help in business growth andpromotion of investor interests.

12. Capital Adequacy

Capital adequacy has emerged as an important determinant that governs the scopeof business in the financial sector. Current requirements stipulation capitaladequacy in regard to trading exposure, but in future more tighter norms of capitaladequacy might come into force as a part of the prudential norms in the financialsector. In this background, it becomes imperative for the brokerage firms to focuson raising capital resources that will enable to give continuous thrust and focus onbusiness growth.

13. Global Opportunities

Broking in the future will increasingly become international in character with thestock markets being open for domestic and international investors includinginstitutions and individuals, as also opportunities for investing abroad. Keepingabreast with developments in international markets as also familiarization with

global standards in broking operations and assimilating major practices andprocedures will become relevant for the domestic brokerage firms.27

14. Opportunities from regional finance

Regional economic integration such as that under the European Union and theASEAN have greatly benefited businesses in the individual countries with cross


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border opportunities that helped to expand the scope and significance of thebusiness. Initial measures to promote South Asian economic integration is beingmade by governments in the region first at the political level to be followed up inregard to financial markets. South Asian economic integration will provide greateropportunities for broking firms in India to pursue cross border business. In view of several of common features prevailing in the markets, it would be easier to makeprogress in this regard.

15. Product Dynamics

As domestic finance matures and greater flow of cross border flows continue, newmarket segments will come into force, which could benefit the domestic brokeragefirms, if they are well prepared. For instance, in the last three to four years,brokerage firms had newer opportunities in the form of commodities futures,distribution of insurance products, wealth management, mutual funds etc, and as

the market momentum continues, broking firms will have an opportunity tointroduce a wider number of products.28

16. Competition from foreign firms

Surging markets and growing opportunities will attract a number of internationalfirms that will increase the pace of competition. Global firms with higher levels of capital, expertise and market experience will bring dramatic changes in thebrokerage industry space which the local firms should be able to absorb andcompete. Domestic broking firms should always give due focus to emerging trendsin competition and prepare accordingly.

17. Investor Protection

Issues of investor interest and protection will assume centre stage. Firms found nothaving suitable infrastructure and processes to ensure investor safety andprotection will encounter constraints from regulation as also class action suits thatinvestors might bring against erring firms. The nature of penalties and punitivedamages would become more severe. It is important for brokerage firms toestablish strong and streamlined systems and procedures for ensuring investor

safety and protection.29

Chapter 4.Literature Review30

Literature Review


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Historical Background:Customer relationship management (CRM), a concept that has been around sincethe mid 90s, has its roots in the technology of sales automation and call centeroperations. At that time, it was thought that merging the customer data from thefield (sales) with the call center interactions would result in more informedinteractions with the customer. The concept resonated with user organizations andsoon mergers and acquisitions created a host of software vendors all claiming tohave an integrated set of capabilities that became known as CRM.On a parallel track, Internet-based tools such as e-commerce, Internet marketing,personalization, and self-help were evolving. These products competed outside of the CRM sphere due to the newness of the technology, and they were referred to ase-business. When the concepts of CRM and e-business melded together there was ashort period of e-madness where vendors talked about eCRM and e-everything.There are still vestiges of this transition in the industry such as essentially using e-

business to add value to vendors and referring to it as partner relationshipmanagement (PRM) or providing tools for employees and referring to it asemployee relationship management (ERM).31

Similarly, enterprise resource planning (ERP) vendors realized that the 360-degreeview of the customer has to include transaction data, so they have likewisedeveloped an integrated package with CRM capabilities.Thus from a technology perspective CRM consists of a set of applications thataddress the needs of customer-facing functions that in turn feed a commondatabase that is supported by business analytics. Each vendor has variations on thistheme.On the other hands, CRM can be defined as a process or methodology used to learnmore about cu stomers needs and behaviors in order to manage and developstronger relationships in an organized way with them.32

Components of CRM:1. Contact an Account Management:

Relevant data for customer profile is captured with the help of the software.Necessary information is captured from prospective customers. CRM system storesdata in common customer database. The database integrates customer accountinformation and presents it in desirable format to the company. The data is used forsales, marketing, services and other applications.33

2. Sales:


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Sales process management follows a customized sales methodology with specificsales policies and procedures. Sales activities include Product information,Product configuration, sales prospectus and sales quote generation. CRM alsoprovide the history of customer account so that the sales call can be scheduledaccordingly.

3. Marketing and fulfillment:

CRM helps the professionals in product marketing, target marketing, relationshipmarketing and campaign management. By analyzing customer and business valueof direct marketing can be estimated. CRM also helps in customer retention,behavior prediction, channel optimization, personalization. Customer response andrequests can be quickly scheduled and hence sales contacts.34

4. Customer Service and support:

CRM system provides service representatives with adequate access to customerdatabase. It also helps to create, assign and manage the service requests bycustomers. Calling format is designed to route customer calls to respectiveattendants as per the skills and authority to handle special cases. Help desk systemis developed to help customer service representative to help customers who faceproblems with product or service to resolve it.Web-based Self Service means help customer to access personalized information atcompany website.

5. Retention and loyalty programs:

The primary objective of CRM is to enhance and optimize customer retention andloyalty. CRM systems are also useful in determining most loyal and profitablecustomers and reward.35

The essential link between Marketing, Sales and Customer Service: Too often, thethree key functions that directly affect customers -Marketing, Sales and CustomerService operate independently of one another. This can create confusion andinconsistency in how you communicate and service your customers. For examples,

marketing staff may come up with a price promotion. However, if that is notcommunicated to the sales team, the result could be incorrect billing, which maytake time or resources from the customer to rectify and could create ill will andmistrust, making it seem like your company does not adhere to its word.36

Similarly, if a salesperson makes a sale and gives certain guarantees to a customerbut those are not communicated to the customer service team or even to the other


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sales team members, then the customer may fees as if the company is not standingbehind its assurance. This can be particularly problematic if there is employeeturnover and poor communication between or even departments. This silo effect

where information is between vertically in departments that may or may notcommunicate with each other- could actually damage your business.With comprehensive CRM system, however, customer communication is capturedand housed in an accessible database, making the most current informationavailable to anyone who needs it and has access to the system. By breakingthrough barriers between various business functions and making communicationtransparent, your company can act in a more consistent and unified fashion with itscustomers, instilling a greater level of trust and strengthening customerrelationships.Religare Securities Limited (RSL) provides a host of financial services under oneroof following a ONE STOP SHOP philosophy. It has a dedicated team of

professionals to cater to the variety of services to Individuals, Corporate andInstitutions. The team updates its clients with opportunities - with a sense of competitive urgency and risk management. Whats more, their special analystsdesign customized services for HNI and Institutions.37

Over the years Religare Securities Ltd. has played a successful role in client'swealth creation. In the process Religare Securities Ltd. also refined itself, as aninvestment advisor and is poised to provide complete Investment ManagementSolutions to its valued clientele.The following is the product profile of the company.

- BSE and NSE

- Online Trading

- NCDEX & MCX

- NSDL & CDSL


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Stock DataReligare Securities Limited (RSL)Current Price (9/4/2009): INR- 391.10Recent Stock Performance:1 Week -0.1% 13 Weeks 5.6%

4 Weeks -17.6% 52 Weeks 1.8%

Religare Enterprises Limited Key Data:

Ticker: 532915 Country: INDIA

Exchanges: BOM Major Industry: Financial

Sub Industry: Securities Brokerage

2008 Sales 8,964,404,553 (Year Ending Jan 2009). Employees: N/A

Currency: Indian Rupees Market Cap: 29,854,462,060

Fiscal Yr Ends: March Shares Outstanding: 76,334,600

Share Type: Closely Held Shares: 41,187,500

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NEWS:Religare Securities bags LIPPER-STARMINE Award for Excellence in Research


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Mumbai, February 18, 2009: Religare Securities Limited a wholly ownedsubsidiary of Religare Enterprises Limited has been recently awarded the LIPPER-STARMINE broker award for "Earnings Estimates in Midcap Research for 2008".The Lipper| StarMine Awards organized by Thomson Reuters, for AssetManagement and sell-side broking Companies in India, were announced last week in Mumbai. The awards recognize analysts who are more accurate than their peersin forecasting earnings, awarding credit to those who demonstrate an ability tomake accurate estimates earlier than their peers.On receiving the award, Mr. Amitabh Chakraborty, President (Equity), said, "Weare extremely proud to receive this award as a validation of our efforts in what wasthe most difficult and volatile year in stock market and corporate history. It is inthese difficult times that the ability of a team to accurately estimate corporateearnings stands its truest test and we have succeeded in enabling our customers tomake informed buy or sell recommendations in order to give above average returns

to investors."40

EquitiesWhat is equity?Funds brought into a business by its shareholders is called equity. It is a measure of a stake of a person or group of persons starting a business.What does investing in equity mean?When you buy a company's equity, you are in effect financing it, and beingcompensated with a stake in the business. You become part-owner of the company,entitled to dividends and other benefits that the company may announce, butwithout any guarantee of a return on your investments.DematerializationWhat is Demat?Demat is a commonly used abbreviation of Dematerialisation, which is a processwhereby securities like shares, debentures are converted from the "material" (paperdocuments) into electronic data and stored in the computers of an electronicDepository (SEE next page).You surrender material securities registered in your name to a DepositoryParticipant (DP). These are then sent to the respective companies41who cancel them after dematerialization and credit your Depository Account withthe DP. The securities on dematerialization appear as balances in the DepositoryAccount. These balances are transferable like physical shares. If at a later date youwish to have these "Demat" securities converted back into paper certificates, theDepository can help to revive the paper shares.What is the procedure for the dematerialisation of securities?


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Check with a DP as to whether the securities you hold can be dematerialised. Thenopen an account with a DP and surrender the share certificates.What is a Depository?A Depository is a securities "bank," where dematerialised physical securities areheld in custody, and from where they can be traded. This facilitates faster, risk-freeand low cost settlement. A Depository is akin to a bank and performs activitiessimilar in nature.At present, there are two Depositories in India, National Securities DepositoryLimited (NSDL) and Central Depository Services (CDS). NSDL was the firstIndian Depository.It was inaugurated in November 1996. NSDL was set up with an initial capital of Rs 124 crores, promoted by Industrial Development Bank of 42

India (IDBI), Unit Trust of India (UTI), National Stock Exchange of India Ltd.

(NSEIL) and the State Bank of India (SBI).Who is a Depository Participant (DP)?NSDL carries out its activities through business partners - Depository Participants(DPs), Issuing Corporates and their Registrars and Transfer Agents, ClearingCorporations/Clearing Houses. NSDL is electronically linked to each of thesebusiness partners via a satellite link through Very Small Aperture Terminals(VSATS). The entire integrated system (including the VSAT linkups and thesoftware at NSDL and at each business partner's end) has been named the "NEST"(National Electronic Settlement & Transfer) system. The investor interacts with theDepository through a Depository Participant of NSDL. A DP can be a bank,financial institution, a custodian or a broker.43

Chapter 5.Research Methodology44

Research MethodologyResearch Design:Research design means adopting that type technique of research which is most

suited for the research and study of the problem. For the study and the research of the problem proper material has to be selected and collected for the investigation.A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose witheconomy in procedure.- Jahoda, deutish. Cook.


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In order to know about effectiveness of Customer Relationship Management inReligare Securities Ltd., it was necessary to interact with the customer. The sampletaken comprised of respondents from Pune city. A questionnaire had to bedesigned to collect valuable information from the different customer groups. Thequestionnaire which was designed suitably to meet the objective of research work.45

Nature of Research:In this project report I have undertaken quantitative type of study.Type of the questions:The questions in the questionnaire asked to the visiting customers of ReligareSecurities Ltd, Regional office in Pune, are Straight Forward and Limited Probing.Type of the Questionnaire:The questionnaire in this project report is straight forward and formalized.Type of Analysis:

The analysis done in this particular project report is statistical.46Sources of Data:

a. Primary Data:

The Primary data are those data which are collected fresh and for the first time andthus happen to be original in character. The primary data that was collectedthrough interview conducted in Regional Branch with daily visiting customers. Theprimary data sources include copies of questionnaire and data of their respectiveresponses.

b. Secondary Data:

The secondary data are those which have already been collected by someone elseand which have been passed through the statistical process. Secondary data wascollected through company websites.Some of the web sites http://www.religaresecurities.com/ and some others like.47

Chapter 6.

Primary Data Collection48Primary Data CollectionResearch Technique:As the researcher, I adopted survey method as a research technique for thisparticular project report.Contact Method:


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I as a researcher interviewed the respondents by personal interview.Sampling Plan:

a) Population:

The population covered in this project report refers to the existing (Office Coming)customers of Regional Office, who have their trading and Dmat A/c with ReligareSecurities Ltd.

b) Sample Size

The sample size undertaken by me for this particular project report is 100respondents.49

c) Sample Element

The respondents contacted and interviewed in this project report are all fromdifferent domain some of them were Businessmen, High Net-worth Investors,Proprietors, even Students also invest in Share Market.

d) Sample Extent

As a researcher, I conducted this survey only for the customers in Regional Officeof Religare Securities, Pune.

e) Sample Duration

The survey was undertaken from the 01st June, 2009 to 30th July, 2009 i.e. for twomonths.

f) Research Instrument:

Questionnaires containing both open ended and close ended questions were used asa research instrument in this particular project report.50

Chapter 7.Data Analysis & Interpretation5130%8%24%38%Businessmen


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HNIsProprietorsIndividualsData Analysis & Interpretation

1. Respondents:

Respondents Businessmen HNIs Proprietors IndividualsNumber of respondents 30 8 24 38

Interpretation:Above pie chart represents that research contains 100 respondents which are Businessmen, HNIs,Proprietors and Individuals and they are 30, 8, 24, 38 respectively in numbers and percentages.

5243%37%13%7%10000 -1 Lakh1 Lakh -5 Lakh5 Lakh -10 Lakh

10 Lakh -Above2. Income Group(Annual):

Income Group(INR)

10000 - 1Lakh

1 Lakh - 5Lakh

5 Lakh-10Lakh

10 Lakh -Above

Number of respondents

43 37 13 7

Interpretation:

Above pie chart represents that the research contained 100 investors and customers of ReligareSecurities Ltd. All the people were from different different Income group which are in numbersshown above. W e can clearly see sample includes more customers from first income group i.e.INR 10,000 1 Lakh53

ExcellentGood


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FairPoor

2. Company Interaction via Email and Telephone Calls:

Interaction Via Email and Telephone Calls Poor Fair Good Excellent

Number of respondents 2 11 59 18

Interpretation:From the above result of Company Interaction via Email and Telephone calls, we can imaginethe satisfaction level of customers and accordingly Customer Relationship is managed throughelectronic media to maximize the wealth of customers. In Religare mostly dealers are in touch of regular traders / customers and customers also get loyal to the company through this practice.Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too.54

96%1%3%YesNoCan't Say

3. Do you find companys investment tips useful and beneficial?

Investment Tips Yes No Cant SayNumber of respondents 96 1 3

Interpretation:When it was asked sudden and on the time answer was the same of maximum people, it meansthe credibility and trustworthiness of the company is on the height. Its nothing but the result of Relationship Management.It is said that Share Market means Well of Loss, nevertheless Religares Customer dont haveany tension in investing because they believe in Companys Researchers and Analysts and their investment tips too.55

4%


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14%40%42%

46810

4. Where do you rate Religare on the scale of 10 in terms of Services?

Religare on the scale of 1 to 10 4 6 8 10

Number of respondents 4 14 40 42

Interpretation:From the above answers Customer Relationship can be very well highlighted because out of 100,43 people have rated Religare on the scale of 1 to 10 and again in remaining maximumcustomers say that they rate Religare at on the scale of 1 to 10.Every customer has his own valueand consideration about Religare because they invest their Hard Earned money and take risk toearn mor e cause of Religares Services and Attachment and it is all the output of Customer Relationship Management.56

66%19%15%EquityCommodityCurrency

5. Where do you invest/ trade mostly?

Where Customers Invest mostly Equity Commodity Currency

Number of respondents 66 19 15

Interpretation:


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One general question was asked in questionnaire to know the investment flow of customerstowards Religare Services. When it was asked why they invest in specific area mostly then it wasanswered by many people that liquidity market is easy to make money out of investment andtake money out whenever we feel not to put.And other reason many customers don t want to invest for long time.And about currency some

people were not interested.57

48%37%15%IntradayDeliveryBoth

6. Where do you trade mostly?

Where Customers Trade mostly Intraday Delivery Both


58

Interpretation:From the above view of graph we come to know that maximum people, 61%customers trade in Intraday Trading. On this customers say they like to trade inIntraday because of Short term investment and high level of excitement andsometimes th ey feel their money seems to sink. Its like One Day Cricket play for many customers.In Delivery, people say here is No / Low Risk, More Money , in this people sayif scrip goes down like Satyam, then also we get chance to book profit buyingcurrent stocks in low price and putting old stock aside temporarily. Here we findpeople hesitate to invest in Intraday and confident to trade in Delivery trading.Very less traders population do trade in both area, for few people its nothing butfund managing, if one finds difficulty in making money in Intraday, they

simultaneously manage their fund for Delivery, but very few people feel do thistype of management.Eventually Religare is the Broking firm and it doesnt lose its attention frommaking money for its customers and lose its attention from Customer RelationshipManagement.59

73%


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27%YesNo

7. Do you trade in any other broking firm?

Trade in other Broking Firm Yes No

Number of respondents 73 27

Interpretation:Above pie chart represents the maximum people have their Dmat A /c and Trading A/csomewhere else also nevertheless they say they trade from Religare only and few of their other

A/cs are put Non-Operating by them.Here we get a fact that Religares Customer Relationship Management really has something veryattractive and attachable to emotions cause of services.Few of them were hesitating while answering this question.60

64%35%1%0%

Strongly YesSlightly YesNoSlightly No

8. Are you satisfied with the services provided by Religare?

Satisfaction StronglyYes

SlightlyYes

No StronglyNo

SlightlyNo

Number of respondents

64 35 1 0 0

Interpretation:Above chart represents us the output of Customer Relationship Management with the help of theservices and customers satisfaction can show a mirror of the efforts of the company towardsmaking their customers loyal to them.


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Here 64% customers have selected and stated that they are fully satisfied with the services thatthey are getting from Religare Securities Ltd.61

17%26%57%Less than 1 yearMore than 1 yearMore than 2 years

9. Since last how many years you are in field of trading?

Since when customers aretrading ?

Less than 1year

More than1year

More than 2years


Interpretation:This question was asked intentionally to know the loyalty of customers with Religare SecuritiesLtd., which is nothing but the back-screen coding of on screen output. These all things are theproud of Religare and its customers are also very proud to be in Religare.62

Findings63

FindingsCustomer Relationship Management Business Drivers and Benefits

It empowers management with a real-time pipelines and forecasting sothey can build and focus on high profit, sustainable relationships.

empowers staff wit customer intelligence and best practices to increasetheir likelihood of successful transactions.

integrating information across the enterprise.

enables executive and management to gain customer insight.64

Customer Relationship Management Risks


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Effective internal controls must be in place to prevent customerinformation from becoming scattered across databases and servers.

e associated with significant revenue cycle.

only otherwise Customers Database can be misused by rivals.

Customer Common Findings while contacting:Generally people whom I have contacted they were from different domains

like Business, Proprietors, High Net worth Income Group (HNIs) and students.

Room.

red very genuine but isthis case it misrepresents the Reality and Credibility.65

this questionnaire is from Religare Securities internal.

people did not take it serious because this was not important tothem as they are busy for trading at dealing Room.

results because this study is for only two months altogether.66

Chapter 8.Limitations67

LimitationsFindings are according to the observations.

1. Many consultants, vendors, and analysts today define CRM in terms of being a customer-centric business strategy that is enabled by a set of applicationsthat support customer-facing functions and management decision making. Thatmay capture the essence of what CRM is, but while it does not concentrate on theextra expenses occurring on Companys A/c due to increment in expenses inserving customers all the ways and Return on investment means consideration may


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not be more than expected. Customer may not give that much business transactionswhich is estimated or expected.

2. It needs specific staffs to handle all the tasks of Customer RelationshipManagement because the data that is feed in system cannot be handled merely byRelationship Managers who has to make new customers and take care of theirdealings and also to accomplish their additional responsibilities.68

Suggestions69

Suggestions1. Short Duration:

o Project research duration was only for two months, in this tenure neitherstudy nor observation can be done properly. For example, we saw sample plan inthat only 100 customers could be contacted and now the problem is- from thissamples we cannot think of Macro Level Perception of customers. Many peoplemay be from same point of view and many may not and those 100 people may notcontain these type of people. So duration of Research Project should be more thantwo months.

2. Customer Category :

o To find effective Customer Relationship Management, Broking firm cando one more thing which will be very beneficial to them in finding AssetCustomers from the bottom level management to top level management. Religareshould adopt system of allotting Customer Categories according to theirtransactions, due payments, exposure, loyalty, frequency of trading and all.70

o In this system at all the level where CRM is handled and watched by Topclass officials of the company, they also get to know the list names and details of the loyal customers and CEO or Board of Directors also get to know totalcustomers and at last their turnover of the total transaction.

3. Affiliated Awareness Programs:

o Religare should arrange affiliated programs within its own groups tocome to the sense of new people and accordingly to prospecting and acquiring newcustomers.


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o With the help of it companies CRM will help it to get height of success

and dominate the world of Services. Because CRM affects Marketing, Sales andprofitability and these all can be achieved by CRM.

o For E.g., Religare Securities can play few awareness documentaries andAdvertisement with Religare Vistaar this will result in getting more and morecustomers to serve and accordingly Religare can become the first ranker inturnover very soon.71

AppendixI. Copy of questionnaire

II. Bibliography

,72

Questionnaire1. Name:________________________________________________

2. Contact No:________________________________________________

3. Occupation:

Businessman Proprietor HNI Individual4. Income Group(Annual):

10000 - 1 Lakh 1 Lakh - 5 Lakh5 Lakh-10 Lakh 10 Lakh - Above

5. How do you find Company Interaction via Email and Telephone Calls?

Poor Fair Good Very Good73

6. Do you find companys investment tips useful and beneficial?

Yes No Cant Say7. Where do you rate Religare on the scale of 10 in terms of Services?


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8. Where do you invest/ trade mostly?

Equity Commodity Currency9. Where do you trade mostly?

Intraday trading Delivery Trading10. Do you trade in any other broking firm?

If Yes, name of the broking firm__________________________________74

11. Are you satisfied with the services provided by Religare?

Since last how many years you are in field of trading?Less than 1 Year More Than 1 Year More than 5 Year

12. What improvement do you want be done in companys services?

13. Which service do you like most in Religare?

BibliographyWebsites =http://deadpresident.blogspot.comhttp://religareonline.comhttp://www.religaresecurities.comNewspapers =The HinduBooks =

1 Project on Religare

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