My summer project

SUMMER TRAINING PROJECT REPORT

ON

“COMPARISON BETWEEN RELIGARE AND STOCK TRADING SERVICE”

Submitted in partial fulfilment of the requirements

for the degree of

Master of Business Administration

Submitted to

Department Of Management Studies

Submitted By

SUSHANT TRIPATHI

Roll No. 09/MBA/006

JSS ACADEMY OF TECHNICAL EDUCATION

NOIDA – 201307

U.P.Technical University, Lucknow

(2009-2011)

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JSS MAHAVIDYAPEETHA

JSS ACADEMY OF TECHNICAL EDUCATION, NOIDA

DEPARTMENT OF MANAGEMENT STUDIES

CERTIFICATE

This is to certify that “Sushant Triapthi” has successfully completed the Summer Project

titled “Comparison Between Religare & Other Stock Trading Services” from “Religare

Securities Ltd, NOIDA Sec-18” as the partial fulfillment of the requirement for the award of

degree of Masters of Business Administration (M.B.A.) by U.P. Technical University

Lucknow during batch 2009-11.

Dr. S.K.Banerjee

Head, Department of Management Studies,

JSSATE, Noida

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DECLARATION

It gives me immense pleasure that I got an opportunity to work with Religare Securities Ltd.

and also to undertake such a wonderful project. The professionalism and the great work

environment has helped me in shape-up my personality and enhance my knowledge. It was an

educating and enriching experience for me.

Now that I have completed my project work, thus, it is but natural to thank all those who

made this project an outstanding experience.

First and foremost, I extend my sincere gratitude to my project guide Mr.Baljeet Singh (Sr

RM) RSL, Noida for his invaluable suggestions and the time he has devoted for successful

execution of this project work. I thank him for giving me insights, required inputs and proper

direction throughout the project.

PLACE: NOIDA

Sushant Tripathi

Date : mm/dd/yyyy (Research Student)

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This project aims at understanding the workings of an organization, its external and internal

processes, the product and services it offers to its customers. Religare Securities Limited has

provided an in depth knowledge about how an organization functions, the challenges it faces

and its earnest endeavour to overcome them in its objective of becoming the no.1 service

provider in its product line.

I thank Mr. VIPUL GUPTA (Branch Manager) for selecting me as a management trainee in

his organization. I would especially like to thank Mr. BALIJEET SINGH (Senior

Relationship manager) for his guidance and motivation in helping me to understand the

working of the organization and the challenges ahead in the organization and the corporate

world as a whole. My regards also extends to Mr. KAPIL GUPTA (RM), for providing an

insight in the organization and their help and support and clearing my doubts and problems.

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TABLE OF CONTENT

CHAPTER-I

EXECUTIVE SUMMARY 10

CHAPTER-II

INTRODUCTION OF PROJECT

2.1 INTRODUCTION 12

2.2 STATEMENT OF PROBLEM 14

2.3 OBJECTIVE 15

2.4 PROBLEM DEFINETION 16

2.5 WHY INVESTOR CHOOSE RELIGARE 17

2.6 INVESTOR EXPECTATAIONS 18

CHAPTER-III

PROFILE OF THE ORGANIZATION

3.1 INTRODUCTION 21

3.2 FINANCIAL SERVICE INDUSTRY 22

3.3 INDIAN FINANCIAL SECTOR 24

3.4 RECENT ADVANCEMENT IN THE INDUSTRY 26

3.5 RANBAXY GROUP 28

3.6 RELIGARE: THE COMPANY 30

3.7 COMPANY STRUCTURE 34

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3.8 COMPETITORS OF RELIGARE 35

3.9 THE RELIGARE AGE 37

3.10 THE REACH OF RELIGARE 38

3.11 DEVISION OF RELIGARE 39

3.12 COMPETITIVE ADVANTAGE 48

CHAPTER-IV

RESEARCH DESIGN AND METHODOLOGY

4.1 INDRODUCTION TO RESEARCH METHODOLOGY 50

4.2 OBJECTIVE OF RESEARCH 51

4.3 RESEARCH DESIGN 52

4.4 SOURCES OF DATA COLLECTION 53

4.5 LIMITATION OF STUDY 54

CHAPTER-V

DATA REPRESENTATION, ANALYSIS & INTERPRETATION

5.1 DEMATERIALISATION 56

5.2 OPENING OF DEMAT ACCOUNT 57

5.3 COMPARISON TABLE OF BROKERAGE CHARGES IN INDIA 67

5.4 TOP 10 BROKING FIRM IN INDIA 69

5.5 BROKERS’ BROKERAGE RATE REMARK 72

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CHAPTER-VI

RECOMMENDATION AND CONCLUSION 83

CHAPTER-VII

BIBLIOGRAPHY 86

CHAPTER-VIII

ANNEXTURE 88

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CHAPTER - I

EXECUTIVE SUMMARY

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This project provides an insight into the financial service industry of which insurance, stocks

and mutual funds form an integral part. The project focuses on the dematerialization and stock

trading services provided by Religare.

The project also includes the services industry in which Religare plays an important role. The

organization structure, history of the company, ownership patterns, divisions and branches

and different departments in the organization are also mentioned.

The project provides an overall view on the financial standing of the company, products

offered and services provided the competitors in the industry and the competitive edge of

Religare to have a distinctive position in the industry.

Lastly the project involves an analysis and comparative study of the product of Religare with

two of its competitors and recommendations to provide a horizon of improvement and

growth.

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CHAPTER – II

INTRODUCTION

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PROJECT

INTRODUCTION

The stock broking industry is a service-oriented industry where brokers act as agents for

investors when a security is bought or sold and are compensated with a commission.

Investors would not hesitate to switch to alternative brokerage houses if they do not obtain

satisfaction. Providing quality service and hence customer satisfaction should thus be

recognised as a key strategy and a crucial element of long-run success and profitability for

stock broking businesses.

Little has been done towards understanding the expectations investors hold from their

stockbrokers. Since expectations serve as benchmark to gauge the service level of brokers,

the delivery of services that exceed customer expectations is one strategy that can give firms a

competitive advantage. Therefore, it would seem beneficial for stockbrokerage firms, in a

dynamic economic environment like India, to provide service at a good scale of quality.

In addition, stockbrokers have much to gain in understanding investors’ expectations of them,

as this would help the stockbrokers to serve their customers better and foster long-lasting

relationship with their customers. This study therefore aims to provide a platform for

understanding whta the customer needs and what is being provided to bridge the gap between

customer expectation and the actual service rendered. This information would be useful for

those who would like to control and improve the performance of their service.

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The project would focus mainly on RELIGARE understanding of the requirements of the

customer and its endeavour to provide what the customer expects and hence showing that it is

the market leader in the stock broking industry.

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STATEMENT OF PROBLEM

To provide RELIGARE with meaningful recommendation (if any) to initiate a change in their

products (Demat and trading) after questioning prospective investors regarding the fulfilment

of their expectation.

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OBJECTIVE

To understand and analyse the expectations of customers of RELIGARE in today market

scenario and RELIGARE’s efforts to provide the best services at the most competitive prices

and provide recommendations of any deviation from that purpose.

Stating the objective of the study.

Mapping out a questionnaire to understand the expectations of customers.

Identifying problems being faced by customers

Analysing RELIGARE’s product in meeting these expectations.

Finding deviations if any.

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PROBLEM DEFINITION

Understanding expectation of investors.

Analysing the problems being faced by investors.

Understanding RELIGARE’s product to meet these problems.

Mapping a questionnaire to analyse investors’ satisfaction of RELIGARE product.

Contemplating the information.

Providing meaningful analysis of the problem.

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Why investors choose Religare??

It is a Ranbaxy promoter group company.

Diverse portfolio and a lot of products under one roof.

Has one of the best brokerage plans.

Attractive brand.

Relationship managers attached to customers.

Equity research team (one of the best in the market).

Controlled and low cost service structure.

Large volume processing structure.

Expertise in coordinating multi-location responses.

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INVESTORS EXPECTATIONS

Providing basic knowledge to investors so as to help them in understanding the stock

market and making proper decisions in stocks

Providing an averagely priced product so as to appeal to the investors and have a

penetration effect in the market.

Timely input (tips, entry and exist) to be provided to prospective clients so that they

can maximize their wealth by making smart decisions.

Updated info about client accounts on amounts outstanding, payment, withdrawals,

shortages etc if any.

Ancillary services like providing payout facilities, direct transfers, timely payments

and receipts, confirmations about order receiptance and delivery of stocks, cheques,

dematerialised shares etc.

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Infrastructure facilities like proper sitting arrangements, water and other refreshments,

clean facility and a clean working environment.

Cordial relation with clients should be maintained so as to promote goodwill and

business of the broker.

Proper availability of RM’s to attend to clients requests so as to minimize delays in

order reacceptance and minimizing customer dissatisfaction.

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CHAPTER – III

PROFILE OF THE

ORGANIZATION

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INTRODUCTION

The stock broking industry is a service-oriented industry where brokers act as agents for

investors when a security is bought or sold and are compensated with a commission.

Investors would not hesitate to switch to alternative brokerage houses if they do not obtain

satisfaction. Providing quality service and hence customer satisfaction should thus be

recognised as a key strategy and a crucial element of long-run success and profitability for

stock broking businesses.

Little has been done towards understanding the expectations investors hold from their

stockbrokers. Since expectations serve as benchmark to gauge the service level of brokers,

the delivery of services that exceed customer expectations is one strategy that can give firms a

competitive advantage. Therefore, it would seem beneficial for stockbrokerage firms, in a

dynamic economic environment like India, to provide service at a good scale of quality.

In addition, stockbrokers have much to gain in understanding investors’ expectations of them,

as this would help the stockbrokers to serve their customers better and foster long-lasting

relationship with their customers. This study therefore aims to provide a platform for

understanding whta the customer needs and what is being provided to bridge the gap between

customer expectation and the actual service rendered. This information would be useful for

those who would like to control and improve the performance of their service.

The project would focus mainly on RELIGARE understanding of the requirements of the

customer and its endeavour to provide what the customer expects and hence showing that it is

the market leader in the stock broking industry.

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Financial Services Industry

The financial services industry broadly known as the money market has been in existence

since the late 1990s.The finance industry encompasses a broad range of organizations that

deal with the management of money. Among these are:-

Banks

Credit financers

Insurance companies

Consumer finance companies

Stock brokers

Investment funds

Government sponsored enterprises

Other financial services

Intermediation or advisory services - These services involve stock brokers (private

client services) and discount brokers. Stock brokers assist investors in buying or selling

shares. Primarily internet-based companies are often referred to as discount brokerage. Full

service and private client firms primarily assist execute trades and execute trades for clients

with large amounts of capital to invest, such as large companies, wealthy individuals, and

investment management funds.

Venture capital - Venture capital is a type of private equity capital typically provided

by professional, outside investors to new, high-potential-growth companies in the interest of

taking the company to an IPO or trade sale of the business.

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Conglomerates - A financial services conglomerate is a financial services firm that is

active in more than one sector of the financial services market e.g. life insurance, general

insurance, health insurance, asset management. A key rationale for the existence of such

businesses is the existence of diversification benefits that are present when different types of

businesses are aggregated i.e. bad things don't always happen at the same time.

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THE INDIAN FINANCIAL SECTOR

The Indian financial services industry has experienced significant growth in the last few

years. There has been a considerable broadening and deepening of the Indian financial

markets due to various financial market reforms undertaken by the Indian regulators, the

introduction of innovative financial instruments in the recent years and the management and

brokerage have been liberalized to allow private sector involvement, which has contributed to

the development and modernization of the financial services sector. This is particularly

evident in the non-banking financial services sector, such as brokerage, resident mortgage and

insurance services. Where new products and expanding delivery channels have helped these

sectors to achieve high growth rates recently. Financial services accounted for approximately

14%of the total GDP.

Derivatives Trading, Demutualization and Depositories Act

to assist market participants in managing risks better than through hedging and arbitrage, the

Securities Contracts(Regulation) Act,1956 was amended to lift the ban on options in

securities and was further amended to include derivatives so that the entire regulatory could

apply to derivative trading also. Derivative trading commenced in June 2000 in NSE and

BSE.

The government proposed in March 2001 to corporatize the stock exchanges and thereby

segregate ownership, management and trading membership. A tax incentive to facilitate

corporatization and demutualization process. The NSE has adopted a demutualised

governance structure where ownership, management and trading are separates to help reduce

conflicts of interest.

The settlement system on stock exchanges gave rise to settlement risk due to lapse of time

before trades were settled. A significant proportion of transactions ended up as bad deliveries

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due to non-compliance with paperwork. To obviate this problem, the Depositories Act 1996

was passed. All actively traded scripts are now held, traded and settled in uncertificated form.

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Recent advancements in the industry

With market sentiment turning positive due to the formation of a stable newly elected

government, the ripple effect is likely to felt across all the financial services in India.

Financial services and real estate sector rose by 9.5 per cent in the first quarter of

2009-10.

Slashing interest rates, lowering factory levies and more than doubling the limit on

foreign investment in corporate bonds has led to rapid growth in the financial sector.

April-May 2009 saw increased inflow in to equity with investors steadily turning

positive on equity with net investment of mutual funds in debt almost getting tripled.

India’s market capitalization (m-cap) has touched US$ 1.04 trillion making it the

ninth largest in the world.

The Indian stock market has currently responded to the optimism of reforms by the

new stable government and its continuity in policies.

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Falling commodity price will ease input cost of the industries. Government policies to

boost the economy.

Inflation at record lows with lower crude price. As interest rate in developed economy

is record low, India could attract investment.

Reducing interest rates provide fuel to the recession economy making the financial system

more secure.

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RANBAXY GROUP

RELIGARE SECURITIES LIMITED

Company history:-

Religare Securities limited……

Incorporated in 1984, promoted by Ranbaxy group, Religare Enterprises (REL) is the

holding company of 11 business subsidiaries.

Each of its subsidiaries is engaged in a wide spectrum of financial products and

services targeted at retail, high-net worth individuals, corporate and institutional clients.

The services offered by the group include :

Share broking,

Financing loans against shares,

IPO financing,

Distribution of mutual funds,

Insurance broking,

Commodity broking,

Wealth management advisory business,

Private equity,

Merchant banking and

Trading in arts and artifacts among others.

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More than 90% of revenue drivers for the company are its retail equity broking arm

Religare Securities and Religare Finvest, which finances loans against shares.

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RELIGARE:THE COMPANY

Religare Enterprises Limited (REL), is one of the leading integrated financial services

groups of India.

The company offers a diverse bouquet of services ranging from equities, commodities,

insurance broking to wealth management, portfolio management services, personal financial

services, investment banking and institutional broking services.

The services are broadly clubbed across three key business verticals- Retail, Wealth

management and the Institutional spectrum.

Religare Enterprises Limited is the holding company for all its businesses, structured

and being operated through various subsidiaries.

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NAME OF THE ORGANIZATION:

RELIGARE SECURITIES LTD .

Registered Office Address:-

NOIDA: 101, Ocean Plaza, Sector-18

NOIDA -

India.

Phone: +91-120-4679623

Fax: +91-120-

Corporate Office Address: -

Noida: A-3, 4, 5, Sector-125

Uttar Pradesh - 201 301,

India.

Phone: +91-0120-339-1000

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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

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bind together and form the core of the Religare vision.

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COMPANY STRUCTURE:

Our organization is led by individual who are professional and leaders in every sense of the world.

Experts in their respective domain, esteem members of its Board of Directors are:

Name Designation

Mr. Malvinder Mohan Singh Non Executive Chairman

Mr. Sunil Godhwani CEO & Managing Director

Mr. Shivinder Mohan Singh Non Executive Director

Mr. Harpal Singh Non Executive Director

Mr. Deepak Ramchand Sabnani Independent Director

Mr. Padam Bahl Independent Director

Mr. J. W. Balani Independent Director

Ms. Sunita Naidoo Independent Director

COMPETITORS OF RELIGARE

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ICICI DIRECT

INDIA INFOLOINE SECURITY PVT. LTD.

HDFC SECURITIES

INDIA BULLS

KOTAK SECURITIES

RELIANCE MONEY

SHARE KHAN SECURITIES

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MOTILAL OSWAL

ANAND RATHI SECURITIES

HEM SECURITIES

ANGEL BROKING

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The Religare Edge:

Position is not squared off without margin calls.

Cash transfer facility against sale & purchase of shares.

Judgmental call tips given even in the processing time.

Facility to place after market orders.

Efficient and prompt customer service.

Efficient research and analytical team.

SMS alert and email notification.

Short margin calls in the morning.

Transfer funds with most banks.

We offer discount on brokerage.

Attractive margin funding facility.

Flat prescribed NSDL charges.

ECS of dividend in margin.

Excellent market tips.

No inactivity fee.

IPO investments.

4 times exposure on delivery and intraday.

We offer mapping with other demat absolutely free of cost.

No minimum balance maintenance on R-ally.

Brokerage is negotiable.

Company offers demat 3 in 1 online banking with HDFC Bank, ICICI Bank, PNB and

AXIS Bank.

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REACH OF RELIGARE

Religare Enterprises Ltd is a Ranbaxy promoter group company

6 Regional offices

25 Zonal Offices

Presence through more than 1200 locations-Pan India

Present across more than 375 Cities & Towns

Total group employees 6,500 plus

Client Interfaces through the Retail, Wealth and Institutional spectrums

Among the largest Retail brokerage branch network, going beyond Tier-I and Tier-II

cities in India

Overseas presence with a representative office in London, with aggressive plans of

straddling other parts of the globe in this financial year

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DIVISION OF RELIGARE

Religare Securities Limited (RSL)

Registered with SEBI as an approved stockbroker with membership of NSE and BSE

Registered for portfolio management

Registered as Depository Participant

Registered as merchant banker

Religare Finvest Limited(RFL)

Registered with RBI as a non-banking finance company and presently engaged in

providing credit, distribution of mutual funds and IPO financing.

Registered with SEBI as a Depository Participant of Central Depository Services

Limited.

Religare Commodities Limited

Registered with Forwarding Market Commission as a commodity broker.

Member of National Commodities and derivative Exchange Limited, Multi

Commodity Exchange Of India Limited and National Multi Commodity Exchange Of India

Limited.

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Religare Insurance Broking Services Limited

Registered with Insurance Regulatory Development Authority as a composite broker

which enables us to distribute products and services of life insurance companies, non life

insurance companies and re-insurance businesses.

Religare Venture Capital Private Limited

RVCL was recently incorporated to commence the business of private equity and

investment manager business and is yet to commence business.

Religare Wealth Management Services Ltd

RWMSL is newly incorporated company in which the wealth management advisory

business is conducted with a joint venture with Macquarie providing wealth management

services to high net worth clients in India.

Religare Finance Ltd

RFINL was recently incorporated to start the business of personal loans and other

consumer lending businesses.

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Religare Capital Market Ltd

RCML was recently incorporated to do the merchant banking business which is

presently under RSL, with the view to segregate the merchant banking operations from

broking business.

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EQUITY BROKING

Over 200,000 Retail Equity clients, with growth rates of over 200%

Market share as on 31st March, 07, was 2.70%

Pan India footprint, one of the largest in the category

International presence

Strong equity research credentials

Team of 10 research analysts

Over 90 man years of research experience for equity retail

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COMMODITY TRADING

Started operations in 2004

Member of MCX, NCDEX and NMCE

Presence through more than 460 locations all over India, in addition to over 40 Mandi

(Rural) locations, one of the largest in the category

20,000 plus clients, with growth rates of over 400%

As of 31st March 2007, market share, ranged between 3% - 4%

Over 40% growth in turnover YOY

Strong, credible research and analytics with a dedicated team of 12 professionals

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ONLINE INVESTMENT

Official Launch of E-trading in August 2006

Aggressive growth over the last few months

Market share as of 31st March, 07 was around 4.76%*

Recently launched a revamped, unique 360 degree customer centric online trading

portal www.religareonline.com

Launch of “Trade Rewards” unique reward points system, a first in the category

Host of other revolutionary features- 0% brokerage, Interest on cash margin etc.

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PERSONAL CREDIT

Personal Loans - Key Facts

Official Launch of Personal Loans in August 2006

Total number clients as on 31st March 2007, were more than 840

Loans against Shares - Key Facts

Current Book Size Rs 650 cr.

Presence through all Religare locations in India.

Total number of clients as of 31st March 2007 was over 1600.

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PERSONAL FINANCIAL SERVICES

This group caters to the financial needs of individuals by advising them on various

financial plans

Financial planning for retail investment is not widespread in India

PFS was started to target the rapidly expanding middle net worth individuals (MNI’s)

in India

Rapid rollout of offerings, such as mutual funds, life and general insurance, fixed

income, small savings instruments, capital bonds and equity IPOs

Expert group of Religare’s PFS advisors provide high quality customized solutions

Dedicated Team of more than 200 advisors.

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PROVIDING FINACIAL SOLUTIONS TO EVERYONE

COMPETITORS

RELIGARE SECURITIES LTD operates in a tough and competitive environment, being

faced by strategic problems like client turnover, stock market fluctuations, external forces can

affect the working of the organization if it doesn’t not change with the changing environment.

Religare currently faces competition from various other brokers namely:-

Kotak securities ltd.

ICICI securities.

Share khan securities

Edelweiss securities

Motilal Oswal

Angel Broking

With every commercial bank providing depository services ,Religare makes a nitch for itself

by having a competitive advantage in the following area:-

Personalized services

Variable brokerage(Price differentiation)

Lowest charges for its quality products

Conglomerate-Providing various services under one roof.

COMPETITIVE ADVANTAGE

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Flexi brokerage and exposure.

Call centre support provided for trading, back office and IT support.

Fully automated processes.

Feature rich software.

Interest on cash margin deposited with Religare.

Target group- Mass market.

USP

Interest on cash margin deposited.

Better quality product at competitive brokerage.

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CHAPTER-IV

RESEARCH DESIGN AND METHODOLOGY

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INTRODUCTION TO RESEARCH METHODOLOGY:

Research Methodology comprises defining and redefining the problem, formulating hypothesis or

suggesting solution, collecting, organizing and evaluating the data, making deduction and reaching to

conclusions.

Research Methodology is a way to solve research in study and solving research problems along with

logic behind them. Thus while talking about research methodologies we are not only talking of

research methods but also consider the logic behind the methods.

During my project, I collected data through various sources of primary & secondary data.

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OBJECTIVES OF RESEARCH :

To understand and analyse the expectations of customers of RELIGARE in today market

scenario and RELIGARE’s efforts to provide the best services at the most competitive prices

and provide recommendations of any deviation from that purpose.

Stating the objective of the study.

Mapping out a questionnaire to understand the expectations of customers.

Identifying problems being faced by customers

Analysing RELIGARE’s product in meeting these expectations.

Finding deviations if any.

Providing recommendations and steps to be taken to counters these problems.

RESEARCH DESIGN:

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A research design is the master plan or model for the conduct of formal investigation and survey. It

is a specification of methods and procedures for acquiring the information needs for solving the

problem. It decides the source of information and methods for gathering the data. A questionnaire

and other forms are tested to use the collection of data. A sampling design is to be selected.

Good research design ensures that the information obtained is relevant to the research question

and that it was collected by objectives. Since research design is simply the framework of plan for a

study, it is used as a guide in collecting and analyzing the data. It is a blueprint that is followed in

completing the research study.

My approach to research is descriptive as well as Explorative. The major objective of the

descriptive research is to describe something – usually market features or functions. Exploratory

research is concerned with the identifying the new insights of investment psychology. Why investor

don’t want to invest in share market.

SOURCES OF DATA COLLECTION:

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In this research, I have used two types of data.

Primary Data.

Secondary Data.

Sources of Primary Data includes:-

Telephonic Interview

Personal Interview during cold calling

Company prospectus & literature

Questionnaire

Sources of Secondary Data includes:-

Books related to Financial Management

Internet

Newspaper

Company Database

References given by Relationship Manager

LIMITATIONS OF STUDY:

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The study was conducted in NOIDA only, which restricted the scope of the study.

The data provided by the investor and the agents can’t be assumed as 100% correct.

Sample size was just 890 which might give different picture than the reality.

Sampling was judgment based & simple random so chance of occurrence of error is more.

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CHAPTER - V

DATA REPRESENTATION,

ANALYSIS &

INTERPRETATION

DEMATERIALISATION

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Dematerialization is the process of converting physical shares (share certificates) into an electronic

form. Shares once converted into dematerialised form are held in a Demat account.

An investor intending to dematerialise its securities needs to have an account with a DP. The

client has to deface and surrender the certificates registered in its name to the DP. After intimating

NSDL electronically, the DP sends the securities to the concerned Issuer. NSDL in turn informs the

Issuer electronically, using NSDL Depository system, about the request for dematerialisation. If the

Issuer finds the certificates in order, it registers NSDL as the holder of the securities (the investor will

be the beneficial owner) and communicates to NSDL the confirmation of request electronically. On

receiving such confirmation, NSDL credits the securities in the depository account of the Investor with

the DP.

OPENING A DEMAT ACCOUNT

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Getting started

Choose a DP

Fill up an account opening form provided by DP, and sign an agreement with DP in a standard

format prescribed by the depository.

DP provides the investor with a copy of the agreement and schedule of charges for his future

reference.

DP opens the account and provides the investor with a unique account number, also known as

Beneficiary Owner Identification Number (BO ID).

Documents to be attached

Passport size photographs

Proof of residence (POR) - Any one of Photo Ration Card with DOB / Photo Driving License

with DOB / Passport copy / Electricity bill / Telephone bill

Proof of identity (POI) - Any one of Passport copy / Photo Driving License with DOB /

Voters ID Card / PAN Card / Photo Ration Card with DOB

PAN card

THINGS INVESTORS SHOULD KNOW ABOUT ACCOUNT OPENING AND

DEMATERIALISATION

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It is mandatory for an investor to provide his bank account details at the time of opening a demat

account. This is done to safeguard investor's own interests. There are two major reasons for this:

The interest and dividend warrants can't be en-cashed by any unauthorized person, as the bank

account number is mentioned on it.

It is convenient and time saving, as dividends and interests given by the companies can be

directly credited to the investor's bank account (through ECS facility, wherever available).

CHANGE IN BANK ACCOUNT DETAILS

It is possible for an investor to make changes to the details of his bank account. The investor must

inform any change in his bank account details to his DP. This enables him to receive the cash

corporate benefits (such as dividends, interests) directly into his account in time and discourages

any unauthorized use by any second party.

CHANGE IN THE ADDRESS OF INVESTOR AS PROVIDED TO THE DP

Any change in your address should be immediately informed to DP. This enables DP to make

necessary changes in the records and informing the concerned companies about the same.

OPENING MULTIPLE ACCOUNTS

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An investor is allowed to open more than one account with existing DP or with different DPs.

MINIMUM BALANCE OF SECURITIES REQUIRED IN DEMAT ACCOUNT

There is no stipulated minimum balance of securities to be kept in a demat account.

MAXIMUM NUMBER OF HOLDERS IN A DEMAT ACCOUNT

A maximum of three persons are allowed to open a joint demat account in their

names.

ACCOUNT OPENING AND OWNERSHIP PATTERN OF SECURITIES

One must make sure to open a demat account in the same ownership pattern in which the physical

securities are held. For example: If you have two share certificates, one in your individual name (say

'X') and the other held jointly with some other individual (say 'XY'), then in such a case you will have

to open two different accounts in respective ownership patterns (one in your name i.e. 'X' and the other

account in the name of 'XY').

HOLDING A JOINT ACCOUNT ON "EITHER OR SURVIVOR" BASIS LIKE A BANK

ACCOUNT

No investor can open a demat account on "E or S" basis like a bank account.

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ALLOWING SOMEBODY ELSE TO OPERATE YOUR DEMAT ACCOUNT

It is possible for an account holder (Beneficiary Owner) to authorize some other person to operate the

demat account on his behalf by executing a power of attorney. After submitting the power of attorney

to the DP, that person can operate the account on behalf of the beneficiary owner (BO)..

ADDITION/DELETION OF THE NAMES OF THE ACCOUNT HOLDERS AFTER

OPENING THE ACCOUNT

It is not possible to make changes in the names of the account holders of a BO account. A new account

has to be opened in a desired holding/ownership pattern

CLOSING A DEMAT ACCOUNT AND TRANSFER OF SECURITIES TO ANOTHER

ACCOUNT WITH SAME OR DIFFERENT DP

An investor, if he wants, can also close his demat account with one DP and transfer all the securities to

another account with existing or a different DP. As per a SEBI circular issued on November 09, 2005,

there are no charges for account closure or transfer of securities by an investor from one DP to

another.

FREEZING/LOCKING A DEMAT ACCOUNT

The account holder can freeze his demat account for a desired time period. A frozen account prevents

securities to be transferred out of (Debit) and transferred into (Credit) the account.

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DEMATERIALISED SHARES DO NOT HAVE ANY DISTINCTIVE NUMBER

Dematerialised securities are fungible assets. Therefore they are interchangeable and identical.

REMATERIALISATION

The process of getting the securities in an electronic form, converted back into the physical form is

known as Dematerialization. An investor can rematerialize his shares by filling in a Remat Request

Form (RRF).

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BENEFITS OF DEMAT ACCOUNT

Safe and convenient way of holding securities (equity and debt instruments both).

Transactions involving physical securities are costlier than those involving dematerialised

securities (just like the transactions through a bank teller are costlier than ATM transactions).

Therefore, charges applicable to an investor are lesser for each transaction.

Securities can be transferred at an instruction immediately.

Increased liquidity, as securities can be sold at any time during the trading hours (between 9:55

AM to 3:30 PM on all working days), and payment can be received in a very short period of time.

No stamp duty charges.

Risks like forgery, thefts, bad delivery, delays in transfer etc, associated with physical certificates,

are eliminated.

Pledging of securities in a short period of time.

Reduced paper work and transaction cost.

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Odd-lot shares can also be traded (can be even 1 share).

Nomination facility available.

Any change in address or bank account details can be electronically intimated to all companies in

which investor holds any securities, without having to inform each of them separately.

Securities are transferred by the DP itself, so no need to correspond with the companies.

Shares arising out of bonus, split, consolidation, merger etc. are automatically credited into the

Demat account of the investor.

Shares allotted in public issues are directly credited into Demat account of the applicants in quick

time.

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BANK ACCOUNT VS DEMAT ACCOUNT

S.

No.

Basis Of

Differentiation

Bank Account Demat Account

1. Form of

Holdings/Deposi

ts

Funds Securities

2. Used for Safekeeping of money Safekeeping of shares

3. Facilitates Transfer of money

(without actually

handling money)

Transfer of shares (without actually

handling shares)

4. Where to open A bank of choice A DP of choice (can be a bank)

5. Requirement of

PAN Number

Not Mandatory Mandatory (effective from April 01,

2006)

6. Interest accrual

on holdings

Interest income is subject

to the applicable rate of

interest

No interest accruals on securities held

in Demat account

7. Minimum

balance

requirement

AQB* maintenance is

specified for certain bank

accounts

No such requirement

8. Either or

Survivor facility

Available Not available

*AQB - Average Quarterly Balance

SIMILARITES BETWEEN BANK'S A/c AND DEMAT A/ c

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S. No. BASIS OF SIMILARITY PARTICULARS

1. Security and

Convenience

Both are very safe and convenient means of holding

deposits/securities

2. Number of accounts No legal barrier on the number of bank or Demat accounts

that can be opened

3. Transfer of deposits

(funds or securities)

Funds/securities are transferred only at the instruction of

the account holder

4. Physical transfer of

money/securities

Physical transfer of money/securities is not involved

5. Nomination Facility Available

Comparison Table of Brokerage Charges in India

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Here you will find a table comparing intraday brokerage charges and delivery brokerage charges

charged by different online brokers in India: Sharekhan, ICICIdirect, Motilal Oswal, Religare,

SBICAP Securities, Angel Broking, 5paisa, Indiabulls, UTI Securities, HDFC Securities,

Indiainfoline, Reliance Money. I constantly try to update this table and try to keep it up to date, so if

you have any more information, please leave a comment. It is also important that you read the remarks

below the table to get a complete picture.

Online BrokerBrokerage for

Delivery

Brokerage for Intraday

tradingMMC*

SBICAP Securities

brokerage charges0.50% 0.10% NIL

Sharekhan

brokerage charges0.03% - 0.50% 0.03% - 0.10% NIL

Motilal Oswal

brokerage charges0.30% - 0.50% 0.03% - 0.15%

5 paisa

brokerage charges0.25% - 0.85% 0.07%

Angel Broking

brokerage charges0.50% 0.02% - 0.03%

ICICI direct

brokerage charges0.75% 0.15%

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Indiabulls


HDFC Securities


UTI Securities


Religare


Reliance Money

brokerage charges0.01% 0.01% card system

Geogit


Indiainfoline

brokerage charges0.50% 0.10% -

MMC=Minimum monthly commitment.

Brokerage is usually negotiable: Several of you trying to choose an online broker and open an online

trading account must have been frustrated trying to search for the exact brokerage charges charged by

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various online brokers. But the fact is the brokerage charged by the same broker varies and in several

cases is negotiable. For example if you go and tell a brokerage house that you are going to deposit 2

lakh rupees and try to convince them you are going to trade heavily, they might consider reducing

your brokerage. That is why in the above table you will find only a range for the brokerage charges in

some cases. But that should be enough to get an idea.

Effective brokerage with taxes is more: In addition to the above brokerage charges you will have to

pay STT (Securities Transaction Tax) at the rate or 0.02% of the total transaction amount. You will

also be charged 12.5% Service Tax on the brokerage amount (and not on the transaction amount). For

example, if your brokerage is 0.50% for delivery and you do a delivery transaction of Rs.100/- then

the total brokerage you pay is

0.50 (brokerage) + 0.02 (stt) + 0.063 (service tax) = 0.58 .

Thus your effective brokerage (including all taxes) will be 0.58%. Similarly for brokerage on intraday

transactions.

One may also like to compare brokerages charged by the online brokers mentioned above for trading

in futures and options. I have traded options on SBICAP securities and have been charged Rs.100/-

flat brokerage fee for every options trade. I will probably find out and also add a comparison table for

brokerage charges for trading derivatives (futures and options) later, if i see enough people google

searching for the same. For futures, some online brokers charge different brokerage for different legs

of the trade, i.e. different for buy and sell trade.

Except SBICAP Securities, I do not have any other trading account. So my information is gathered

from indirect sources. In case there are any inacurracies please let me know by posting a comment.

TOP TEN BROKING FIRM IN INDIA

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Many times new investor or trader gets confusion for open a D Mat and trading Account in

Broking house. Many of Broking House promises to you for better service but clients get

problem due to trading session in theirs Broker house firm.

Here we are giving list of India’s top 10 Broking House on base of survey of investor and

trader of many cities. In their views following Broking Houses gives best and reliable services

1. ICICI direct.com

2. India Infoline

3. Kotak Securities Ltd.

4. Share Khan

5. Indiabulls

6. Motilal Oswal

7. Bajaj Capital

8. SMC

9. Angel Broking

10. Reliance Money

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http://www.reliancemoney.com/index.aspx

http://www.angelbroking.com/

http://www.smcindiaonline.com/

http://www.bajajcapital.com/

http://www.motilaloswal.com/history.htm

http://www.indiabulls.com/

http://www.sharekhan.com/

http://www.kotaksecurities.com/aboutus/index.html

http://www.indiainfoline.com/

http://www.icicidirect.com/

Contact the brokers in your nouns and find the below details:

1. Account Opening charges

2. Annual Maintenance Charges

3. Buy and Sell commissions

4. Any additional Commissions

5. Online Trading Facility at past its sell-by date times

6. Customer Service Clarity

7. Availability of information (free research reports or timely information on company moves

and actions)

8. Number of banks approved to association account to the trading a/c

Visit the maximum brokers and own a database of this. You required to call them to ask these

questions to get answer. By calling them you will return with idea in the order of the customer

service clarity too...

Once you have collected the background, analyze and compare that. You will get exact details

something like to who are the best and with whom you want to start on an account.

This will not one and only help you to identify the show of multiple brokers but in any time

you can compare your present trading account's acting out with any other brokerage company

because you hold that data too beside you..

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Posts Tagged ‘Brokerage Structure of Religare’

An Overview on the Brokerage Charges for Online Stock Trading in India

September 22nd, 2009 admin

On the Financial Awareness Portal, I have posted two articles on the subject of brokerage

charges comparison. You may like to refer these articles “An Overview on the Brokerage

Structure of Reliance Money” and “Comparison of Brokerage Charges in India”

In continuation with the above two articles, this is the third article in which I have tried to

provide the details of brokerage structure of five brokerage houses in India. Please check out

the following tables to get an idea about the brokerage structure of different brokers in India

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Broker Brokerage Rate Remarks

Delivery Trades Intra-Day

HDFC Securities

0.5% Fixed brokerage rates regardless of the turnover

Brokerage charged on both legs

0.05%

Fixed brokerage rates regardless of the turnover


Minimum brokerage of Rs.25 per trade subject to the SEBI limit of 2.5% of total traded value

Occasionally introduces brokerage rebate schemes but turnover slabs are very high for being

eligible for the rebate and as such the schemes are generally not beneficial to ordinary

investors

ICICI Direct

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0.25% to 0.75%

Variable brokerage in seven slabs of turnover in the steps of 0.05 each

Charged on both the legs

0.25% to 0.75%

Variable brokerage in seven slabs of turnover

Charged only on the first leg and hence effective rate of 0.375%

Margin trades @0.05%

For most of the retail investors, higher rates will be applicable, as the turnover for lower rates

may not be achieved by them

Kotak Securities

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0.18%, 0.23%, 0.27%, 0.36%, 0.45%, 0.55%, 0.59%

Variable brokerage in seven slabs of turnover


0.03%, 0.04%, 0.05%, 0.06%

Variable brokerage in four slabs of turnover


For most of the retail investors, higher rates will be applicable, as the turnover for lower rates

may not be achieved by them

Religare

0.30% to 0.50%

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Variable brokerage in three slabs of turnover in the steps of 0.1 each


0.03% to 0.05%



The details are applicable for Classic Account in which the traders do not have to pay any

subscription charges or fixed fees

In other accounts such as Classic Plus Account, Freedom Account, Trump Account, the

traders have to pay certain minimum fixed fees every month, six months or year. Traders will

be reimbursed brokerage maximum up to the subscription amount or will be provided certain

free turnover depending upon the type of account

Asit C Mehta Investmentz.com

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For advanced brokerage plans, lower rates are available for higher turnovers




Minimum brokerage of 3 paisa per share

Various advance brokerage plans in which the traders will be reimbursed brokerage maximum

up to the amount of advance brokerage paid by them

Name of the Broker Brokerage Rate Remarks

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Futures Options

HDFC Securities

0.05% 0.025% in case of intra-day square off



1% of the premium amount or Rs.100 per lot, whichever is higher



Minimum brokerage of Rs.25 per trade subject to the SEBI limit of 2.5% of total traded value

Occasionally introduces brokerage rebate schemes but turnover slabs are very high for being

eligible for the rebate and as such the schemes are generally not beneficial to ordinary

investors

ICICI Direct

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0.03% to 0.05%

Variable brokerage in four slabs in the steps of 0.005 each


In case of intra-day square off, second leg is charged at Rs.15 per lot

Rs.65 to Rs.95 per lot

Variable brokerage in five slabs of premium turnover in the steps of Rs.5 each


In case of intra-day square off, second leg is charged at Rs.15 per lot

For most of the retail investors, higher rates will be applicable, as the applicable turnover for

lower rates may not be achieved by them

Kotak Securities

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0.023%, 0.027%, 0.036%, 0.045%, 0.07% for intra-day square off

0.032%, 0.046%, 0.046%, 0.073%, 0.09% for carry forward positions

Variable brokerage in five slabs of turnover


1.15%, 1.35%, 1.8%, 2.25%, 2.5% for intra-day square off

1.6%, 2.3%,2.3%, 2.5%, 2.5% for carry forward positions

Variable brokerage in five slabs of premium turnover

Minimum per lot Rs.70, Rs.80 and Rs.100 for intra-day square off

Minimum Rs. 100 per lot in case of carry forward


For most of the retail investors, higher rates will be applicable, as the applicable turnover for

lower rates may not be achieved by them

Depending upon the turnover, the accounts are given different names such as ‘Gateway

Account’, ‘Privilege Account’ etc

Religare

0.03% to 0.05%

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1% of the premium amount

or Rs.75 per lot, whichever is higher

The details are applicable for Classic Account in which the traders do not have to pay any

subscription charges or fixed fees

In other accounts such as Classic Plus Account, Freedom Account, Trump Account, the

traders have to pay certain minimum fixed fees every month, six months or year. Traders will

be reimbursed brokerage maximum up to the subscription amount or will be provided certain

free turnover depending upon the type of account

Asit C Mehta

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Investmentz.com 0.05%




Rs.100 per lot


Minimum brokerage of 3 paisa per share

Various advance brokerage plans in which the traders will be reimbursed brokerage maximum

up to the amount of advance brokerage paid by them

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CHAPTER-VI

RECOMMENDATIONS AND CONCLUSION

RECOMMENDATIONS AND CONCLUSION

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Though Religare is the best trading broker in the region, its services still require some changes so as to

bring customer satisfaction levels up. As already known Religare’s working is adversely affected by

the trends in the market and in these times providing the customer with all the requirements is a very

difficult task, but still every personnel at Religare tries to provide the utmost level of satisfaction to its

clients.

The changes that would help Religare to grow and sustain in my view are as follows:-

The price of the product of Religare is the least in the market but to induce prospective

customers it needs to tell the investors that even if other brokers have their prices less than

Religare ,the other brokers either charge higher brokerage or do not provide pool facility and

therefore Religare’s product has been priced after examining various other pricing options in the

interest of the investors.

Religare should provide basic information on its product and the services offered by it. It

should make every attempt to make the consumer aware of the various facilities it provides so that the

customer can avail them. For example lot of respondents lacked information about the interest rate

being charged on margin lending , information regarding T+2 and T+5 and how to access CRN portals

and tips on stocks should be provided to customers who are using their own Odin facility etc.

The refreshment issue can be resolved by:

By providing refreshments at a later time, in the middle of the trading period.

The water and other facilities can be moved inside the trading room so that the client doesn’t

have to wait for someone to bring it to him and get it himself.

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An alternative source of refreshment supply be sought so as to meet the budget of the

enterprise.

Misuse and mismanagement should be checked.

Customer complaints regarding Odin diet, confirmation calling, and transactional report for

income tax purposes should be provided to the customer as per requirement. Furthermore the

transactional report should be bifurcated between long term and short term capital gain for the ease of

the clients.

The Odin diet software is the most advanced and user friendly software that Religare provides

for its clients. The customer should be made aware of the many function that the Odin can provide to

it’s the clients.

An RM assessment is required after every month so as to assess their performance and ask

them about the steps they have taken to retain their original customers and to induce the dormant

customers to invest and also to assess if the client is satisfied with the working of their respective

RMs.

The enterprise should try to bring in the notion of ‘customer orientation’ i.e give the customer

what they require, only then can it grow and reach the highest level of customer satisfaction.

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Religare is the best service provider for depository and its stock trading services and has over all been

the industry leader and carved out a name for itself in the stock broking industry and with its

endeavour to retain that position certain changes in its daily working would add to its competitive

advantage.

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CHAPTER-VII

BIBLIOGRAPHY

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BIBLIOGRAPHY

BOOKS & JOURNALS:

RESEARCH METHODOLOGY METOHDS & TECHNIQUES

Author: - C.R.Kothari

MARKETING RESEARCH

Author: - David. J. Luck

Ronald S. Rubin

WEBSITES:

http://www.religaresecurities.com

http://www.nseindia.com

http://www.bseindia.com

http://www.google.com

http://www.finsights.com

http://www.asklaila.com

http://www.moneycontrol.com

http://www.adityabirlamoney.com

http://www.economictimes.com

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CHAPTER – VIII

ANNEXURE

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APPENDIX

QUESTIONNARE

1. Name :

2. Mob No : email:

3. Company :

4. Income

A) Below 2 lakh B) 2lakh to 5 lakh

C) 5lakh to 10 lakh D) More than 10 lakh

5. Do you invest in share market ?

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A) Yes B) No

[A] If “yes”

1. How much you invest?

2. Which is your broking firm?

3. In which market you invest more frequently?

A) Equity market B) Commodity market

C) Mutual funds D) Gold

E) Other : ........................

4. Are you satisfied with the service?

A) Yes B) No

Comment :

[B] If “no”

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1.Do you have “Demat Account”?

A) Yes B) No

2. Any specific reason for not investing in stock market

Comment :-

3. Would you like to invest in share market?

1. Have you heard about “Religare”?

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