LOVELY PROFESSIONAL UNIVERSITY DEPARTMENT OF MANAGEMENT Report on Summer Training SWOT ANALYSIS OF DEMAT ACCOUNT SERVICES OF RELIANCE SECURITIES Submitted to Lovely Professional University In partial fulfilment of the Requirements for the award of Degree of Master of Business Administration Submitted by: SUMIT KUMAR University Roll No.11311264 1
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Swot Analysis of Demat Account Services Reliance Securities
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LOVELY PROFESSIONAL UNIVERSITY
DEPARTMENT OF MANAGEMENT
Report on Summer Training
SWOT ANALYSIS OF DEMAT ACCOUNT SERVICES OF RELIANCE SECURITIES
Submitted to Lovely Professional University
In partial fulfilment of the
Requirements for the award of Degree of
Master of Business Administration
Submitted by:
SUMIT KUMAR
University Roll No.11311264
DEPARTMENT OF MANAGEMENT
LOVELY PROFESSIONAL UNIVERSITY
JALANDHAR NEW DELHI GT ROAD
PHAGWARA, PUNJAB
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PREFACE
Each and every theory taught in the academic institution can only become fruitful if used practically. In the
present era market is very competitive and very complicated, so to study the sales promotion and its method is
very important. The successful completion of this project was a unique experience for me because by visiting
many place and interacting various person, I achieved a better knowledge about sales. The experience which I
gained by doing this project was essential at this turning point of my career this project is being submitted
which contain detailed analysis of the research under taken by me
The objective of summer training project was to find out the “To find the market potential and market
penetration of product offering by Reliance securities Ltd. A well-structured questionnaire was designed
for consumers for comparative study of impact sales promotion on customers. During the process of collecting
& analyzing the data, we also handle different problems of customers. We also got aware of various difficulties
prevailing in reliance securities.
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ACKNOWLEDGEMENT
No task, however small can be completed in hostile & uninspiring environment. I wish to thank the persons
who helped to get in depth knowledge of plant during my industrial training at “Reliance Securities.” The
valuable cooperation and guidance, directly or indirectly of various people has contributed a lot to the
successful completion of the project undertaken.
I am highly indebted to Mr. Vaneet Jain (Team Leader).
I would like to thank Mr. Amit Sethi (FACULTY) for providing me his advice and guidance whenever needed.
Help and co-operation received by everyone are thankfully acknowledged.
(SUMIT KUMAR)
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DECLARATION
I, Sumit Kumar, student of MBA IInd Semester, studying at LOVELY PROFESSIONAL UNIVERSITY, PHAGWARA, in session 2013-2015 hereby declare that the summer training report on “Swot Analysis of Demat Account Services of Reliance Securities.” submitted to LPU, PHAGWARA in partial fulfillment of Degree of Master of Business Administration is the original work conducted by me. The information and data given in the report is authentic to the best of my knowledge. This summer training report is not being submitted to any other University for award of any other Degree, Diploma and Fellowship
(Sumit Kumar)
MBA 2nd semester
LPU, PHAGWARA
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TABLE OF CONTENT
Page No.
Title
Company Certificate
College Certificate
Declaration (i)
Preface (ii)
Acknowledgment (iii)
1.Executive summary 7
2. Literature Review 8-12
3.Need of the study 13
4.Introduction 13-26
4.1-Industry Profile
4.2-Company Profile
4.3-Product Profile
5.Theoretical Background 27-32
6. Objective and scope of the Project 33-34
7.Analysis of the Competitors of reliance 35-39
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securities8.Research Methodology 41
8.1-Research Design
8.2-Sample Design
8.3-Sample Size
8.4-Data collection
9.Data Analysis &Interpretation 42-47
10.Findings 48
11. Limitations 48
12. Conclusions 49
Annexure 50
Bibliography 51
Chapter 1- EXECUTIVE SUMMARY
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The Indian capital markets have seen a lot of economic swing since last decade but still it has been flourishing
with rapid transformations. Reforms are continuing and are bringing a lot of change in structure, process and
governance of capital market. This is helping Indian capital market to gain an image of mature market place in
the capital markets of the world. The working mechanism is now more flexible and transparent. The stock
exchanges have been corporatized too. Other than this new instruments like index future, index options,
derivatives etc. has been introduced.
Out of the major players showing their presence in the financial markets, Reliance Money is the one. Reliance
Money is promoted by Reliance Capital; one of India's leading and fastest growing private sector financial
services companies, ranking among the top 3 private sector financial services and banking companies, in terms
of net worth. During past few years, it has picked up a considerable market share in the sector of financial
services. It is a one-stop-stop, providing end-to-end financial solutions (including mobile and web-based
services). It has the largest non-banking distribution channel with over 10,000 outlets and 20,000 touch points
spread across 5,165 cities/ towns; catering to the diverse needs of over 3 million existing customers.
During the internship, a research has been carried out on the on the topic “Swot analysis of Demat account
Services at Reliance Money”. The objectives of the research were to create awareness about various products
and services of the Reliance Money and to know about the investor behaviour and their preferences towards
investment decisions and considerations. Other than this, the research included the study of position of Reliance
Money in the market and its comparative position with other players.
Descriptive research was used in the whole project. The data was collected through meeting investors and
potential investors in various areas of jalandhar and questionnaires were filled on the basis of their responses.
The collected data was analyzed using percentage method.
Various findings were derived which revealed perception and behaviour of investors and potential investors
toward financial market. Other than this, the attitude of investors was also observed towards Reliance Money.
Based upon the findings, various suggestions were given with a view to improve the Position of Reliance
Money in the market.
As a result of research, it was concluded that Reliance Money has a good brand image but it still has to work
upon in various areas to excel in the financial sector.
Chapter 2-Literature Review 7
International Journal of Management and Social Sciences Research (IJMSSR) ISSN: 2319-4421 Volume 2, No.
4, April 2013
Online Trading and DEMAT Account in India-Some Issues
Dr. Ramesh Onkareppa Olekar, Associate Professor & Coordinator, PG Department of Commerce, Vijayanagar
Sri Krishnadevaray University, Post Graduate Centre Nandihalli, Sandur Chanabasappa Y Talawar, P G
Department of Studies & Research in Commerce, Karnataka University P G Center, Kodibag, Karwar
ABSTRACT
The term "market" can have many different meanings. One usage of the term denotes the primary market and
the secondary market. These two markets distinguish between the market where securities are created and the
market where they are traded among investors. Their function is the key in understanding how securities are
traded. The primary market is where securities are created. It's in this market that firms sell (float) new stocks
and bonds to the public for the first time. Secondary market is where most trading occurs, the secondary market
is the one in which securities are traded after having been initially offered in the primary market. It is
basically a market in which an investor purchases an asset from another investor, rather than an issuing
corporation. This includes the NYSE, NASDAQ and all major exchanges around the world. The defining
characteristic of the secondary market is that investor’s trade among themselves. For example, if you go to
buy Microsoft stock, you are dealing only with another investor who owns shares in Microsoft. Microsoft (the
company) is in no way involved with the transaction. However there was an improvement in the
mechanism of trading whereby it was seen that there was a shift from the traditional method of physical
trading to the updated version of online trading.
INTRODUCTION
Online brokerage has grown substantially since the introduction of Internet and now account for 40%-50%
of retail trade. This change has come in because individual investors want to increase control over their
finances and do not want someone else to manage the money. Online trading has become very popular
in last couple of years because of convenience of ease and use. Numerous companies have gone on-line
to meet their customer’s demands enabling them to trade when they want and how they want to. Online trade,
which now accounts for 50%-60% of all retail trade, is forecasted to increase to 70% by 2008. At present online
brokers hold $574billion in assets but this figure is expected to grow to $4 trillion by end of 2007. The market
has become saturated and very competitive. As the number of players increase, it becomes very difficult
to differentiate. The volatility in US equity, market in 1999 and September 11 World Trade Center attack has
hurt the online brokerage trading volumes. Established E-brokerage firms have created bearer to entry
that makes it difficult for new player to enter into the market. Dematerialization the process by which 8
physical certificates of an investor are converted to an equivalent number of securities in electronic form and
credited in the investor's account with his (DP) Depository Party. Only those certificates that are already
registered in your name and are in the list of securities are admitted for Dematerialization at NSDL/ CDSL.
Demat shares are supposed to obviate all the problems of physical trading. The biggest attraction of trading in
Demat shares is that the shares an investor buys comes with a clean title and immediately after the
settlement on the relevant stock exchange. Buying shares in the Demat form always guarantees the
investor a good title as soon as the settlement is over and hence it is a preferred mode of trading
today and will be so in the future also.
STATEMENT OF PROBLEM
Online trading and Demat are the two emerging concepts in stock market. It involves personal factors,
technical factors, business factors and economic factors. The interplay of these factors on stock market
requires a deep study about the pattern process and procedures and performance. This study is intended to
identify the various concepts about Demat and the online trading and its way of functioning.
NEED FOR THE STUDY
Physical trading has been given up by many stock exchange around the world and till India is
catching up. Transparency has become an important issue with the regular series of scams over the
years. At this junction, Indian investors are able to avail the facilities of Depository participants,
Depositories, along with Brokerage. So how far this system is working in India and the investors experience
with these new system of trading.
OBJECTIVES OF THE STUDY
To study the awareness level of various concepts of Demat & online trading.
To identify the benefits of Demat & online trading.
To study percentage of savings of online trading.
To identify the market leaders in this segment
METHODOLOGY
Throughout the study an attempt has been made to arrive at the conclusions with help of economic
reasoning, experience derived from secondary markets from the lessons of the economic history. The study
is explorative in nature as it aims in identifying the growth & benefits of DEMAT and on-line trading.The
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assets, which the corporation has inherited, have deep roots and justify full discussion in its historical
perspective.
SOURCES OF DATA Secondary data: The secondary data collected from different websites,
journals, company reports and the available literature on the subject.
SCOPE OF THE STUDY:-The study encompasses only the major Secondary market that have a substantial
share in the share market. The scope of the study is limited to the performance of the industry for the
limited period.
Limitations of the study
The information provided by the managers may not be the actual figures; it may be a virtual data in the
Sense conclusions based on the real data vary from the virtual data.
The study is conducted in the short period of time, and hence the results vary from time to time.
The study covers only a particular geographical region, and hence the conclusions cannot be
Considered as a whole outcome of the industry.
INDIAN E-BROKING SCENARIO
The Indian stock broking business has gone through a sea of changes. From that of a business dominated
by few individual players to institutional members, as did trading open outcry and hidden deeds to screen
best and transparency. India enters the cyber-trading era to equal the current market trends taking into
consideration the need to facilitate inflow of funds in the capital market. The trading system will enable all
categories of investors, resident and non-resident Indian, to trade online. Online brokerage in India is still in
its early days. Though the trade through online broking is very miniscule compare to total trading, the signs
are that it will grow to 30% -35% in next few years.
EFFECT ON OFF-LINE BUSINESS
With the emergence of e-broking, which offers many benefits like, level playing filled to all investors,
comfort of the house, simplicity, low brokerage and value added services it could be possible for some of
the offline trade to shift to online trade. The proportion of online broking business compare to off line
broking is miniscule about less than 1%. The offline player would not be affected unless the figure
reaches a minimum of 8-10%. Online trade has not started to eat the volumes of, off line business till
now. But at the same time it has created new set of clients for e.g., NRI‟s who were not very active in the
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market due to lack of transparency and information, have moved to use this facility. Housewives are
another new category. Net savvy student’s and retired persons are the next expected category.
Depository services-beginning of the era of stocks at click Today it is a practical reality that one can arrange
delivery of securities (shares) sold anytime, anywhere to anyone by a „click‟ of the mouse and it is
possible to trade in securities and settlement of the accounts from the convenience of a sitting room or
via a laptop. The depository is responsible to deliver and receive securities trade at the stock exchange,
which are the business partners of the depository. It does not deal with financial aspect of the settlement of
the trade. Dematerialization of securities (shares) was the commencement of the era of stocks. The
beginning was made in 1996, with legislation of the depository act 1996 and SEBI regulations 1996.
FINDINGS
After the introduction of dematerialization the stock market has become more transparent and it attracts
more investors day by day.
If the volume increases continuously, DPs will be in a position to decrease the charges for opening and
maintenance of demat a/c.
It is observed that banks normally levy a lower service charge compared to other depository
participants.
There are some other banks which charges less services charges for demat services than other
securities companies.
When the numbers of users are more on line, the speed of the transaction is affected.
Since the rolling settlement is one day, people who are speculating without having full amount of
money or shares with their DP, tend to face higher degree of risk.
Some securities have not yet started with the Interactive Voice Response (IVR) units and demat
on net.
Even though online trading provides privacy to the clients, trends available from the trading room will
not help most of the online traders.
investors dealing online must possess good knowledge for analyzing the information passed on
by the companies through net.
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Online service depends highly on technology.
CONCLUSION
Notwithstanding many problems, Indian stock market has emerged as a significant financial intermediary,
assisting efficient resource allocation, providing strong support to Indian economy and help investors to
realize the benefits of stock market investing. The growing importance of the Indian stock market place may
be noted in terms of increased mobilization of funds and growing number of investors account. Indian
stock market industry has remained centered around a limited product range. This has happened due to
the tendency to avoid risk, inability to understand future market development and changes in investor
preference. The absence of product diversification and a confused market situation has been made more
by the absence of an innovative marketing network. Online is considered as one of the innovative network. The
product range offered by stock broking firms needs to be redesigned to cater the changes in the short term,
medium term and long term savings and investment markets. Management is considered to be a key for the
operational efficiency of any business venture. This factor becomes even more crucial for service
ventures such as stock broking business venture. Stock market industry must undertake a well-designed
and comprehensive program of investor education especially aimed at investors in rural and semi-urban
areas. However this has been mostly neglected in India. In India most of the broking business comes from
the small investors and efforts are concentrated on serving them efficiently, and this would help them
in being a good intermediary for providing various financial services due to it‟s reach to the last mile.SEBI
has been playing a significant role in the regulation of stock market. SEBI‟s steps like dematerializing, and
trading through net etc. has increased the transparency of the trading than before. In the global market
place no industry can afford to be struck by inertia. But it is management which is crucial to the
success of any business operation.
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CHAPTER 3- NEED OF THE STUDY
The need of the study arises because of the reason that a trainee must understand the
company, its achievements and tasks, products and services and also to collect information
about its competitors, its products and services offered. So that, after understanding and
collecting information about the organization and its competitors, a trainee will be able to
work well for the organization.
From the study I have learned very much, about the company as well as the strategy of the
customers, which helps me a lot at my working days.
Chapter 4-INTRODUCTION OF RELIANCE CAPITAL
Reliance Money – Transacting and investing simplified.
Get ready to change the way you transact and invest in financial products and services. Whether you wish to
transact in equity, equity & commodity derivatives, IPO’s offshore investments or prefer to invest in mutual
funds, life & general insurance products or avail money transfer and money changing services, you can do it all
through reliance money. Simply open a reliance money account and enjoy the convenience of handling all your
key financial transactions through this one window.
Reliance Money is a group company of Reliance Capital; one of India's leading and fastest growing private
sector financial services companies, ranking among the top 3 private sector financial services and banking
companies, in terms of net worth. Reliance Capital Ltd. has interests in asset management, life and general
insurance, private equity and proprietary investments, stock broking and other financial services. Reliance
Capital is one of India’s leading and fastest growing private sector financial services companies, and ranks
among the top 3 private sector financial services and banking companies, in terms of net worth. The company
has interests in asset management and mutual funds, life and general insurance, private equity and proprietary
investments, stock broking and other activities in financial services
4.1-INDUSTRY PROFILE OF RELIANCE MONEY
Reliance money is an Indian diversified financial services holding company promoted by Reliance Group. It is
one of the largest financial services companies in India by market capitalization. Reliance Capital also ranks
among the top private sector financial services and banking groups, in terms of net worth in India. The
company is a constituent of MSCI India and CNX Junior Nifty. As of July 2014, Reliance Capital’s market
capitalisation was over 160 billion (US$2.7 billion), ahead of Bajaj Holdings, L&T Finance promoted by
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Larsen Toubro and Muthoot Finance. As on March 31, 2013, Reliance Capital had assets worth 455.28 billion
(US$7.6 billion), a 16-fold increase in 8 years and net worth of 124.83 billion (US$2.1 billion).
Reliance Capital has interests in asset management and mutual funds; life insurance and general insurance;
commercial finance; stock broking; wealth management services; distribution of financial products; private
equity; asset reconstruction; proprietary investments and other activities in financial services. The company
operates across India and has over 20 million customers and workforce of approximately 18,500 as of March
31, 2014 Anil Ambani, promoter of Reliance Group is the Chairman of Reliance Capital, while Amitabh
Jhunjhunwala is the Vice-Chairman and Sam Ghosh is the Chief Executive Officer.
Reliance Money is a comprehensive electronic transaction platform offering a wide range of asset classes. Its
Endeavour is to change the way India transacts in financial markets and avails financial services. Reliance
Money is a single window, enabling you to access, amongst others in Equities, Equity & Commodities
Derivatives, Mutual Funds, IPOs, Life & General Insurance products, Offshore Investments, Money Transfer,
Money Changing and Credit Cards.
History of Reliance Capital
Reliance Capital Limited was incorporated in year 1986 at Ahmedabad in Gujarat as Reliance Capital &
Finance Trust Limited. The name Reliance Capital came into effect from January 5, 1995. In 2002, Reliance
Capital Ltd shifted its registered office to Jamnagar in Gujarat before it finally moved to Mumbai in
Maharashtra, in 2006. In 2006, Reliance Capital Ventures Limited merged with Reliance Capital and with this
merger the shareholder base of Reliance Capital rose from 0.15 million shareholders to 1.3 million. Reliance
Capital entered the Capital Market with a maiden public issue in 1990 and in subsequent years further tapped
the capital market through rights issue and public issues. The equity shares were initially listed on the
Ahmedabad Stock Exchange and The Stock Exchange Mumbai. Presently the shares are listed on The Stock
Exchange Mumbai and the National Stock Exchange of India.
Non-Banking Finance Company
Reliance Capital obtained its registration as a Non-banking Finance Company (NBFC) in December 1998.
Reliance Capital has since diversified its activities in the areas of asset management; life and general insurance;