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2010
MEGHA GROVER
KIAMS, HARIHAR
5/28/2010
MARKET PENETRATION
STRATEGIES
ACKNOWLEDGEMENT I, MEGHA GROVER, PGDM Student in Kirloskar Institute of Advanced Management Studies, Harihar is highly thankful to all those who guided me in completing this project. First of all, I would also like to pay my heartiest thanks to my faculty guides- Prof. T Vishwanathan and Prof. Abhishek Ranga as well as my company guide- Mr. Pankaj Pandey, BM, Religare for providing me with the useful tips and suggestions regarding the project. I would also like to pay my thanks to entire KIAMS Faculty and Religare family especially Religare relationship managers(RM’s), who provided me such a wonderful guidance to do research project and provided their valuable suggestions in understanding the work of this project. MEGHA GROVER PGDM STUDENT KIAMS, HARIHAR
TABLE OF CONTENTS
Acknowledgement Project Summary 1. Industry Profile 2. Recent development in Brokerage Industry 3. Major changes in the recent years 4. Regulation of securities market by SEBI 5. SEBI’s regulation for Demat or Depository 6. Mode of investment-Capital Market 7. Top 20 exchanges of the world. 8. Trading network 9. Corporate Hierarchy 10. Competitive analysis of Securities Industry 11. Depository and Depository Participant 12. Religare Enterprises Limited- Vision and Missio n 13. Management and Company profile 14. Religare subsidiaries 15. Religare Products offerings 16. Swot analysis of Religare Securities Limited (R SL) 17. Analysis and Details of RSL competitors 18. RSL margining in Capital Markets 19. Article on Institutional Brokerage in India 20. Evaluating Customer satisfaction and strengthen ing customer retention. 21. MasterCard Consumer Confidence survey 22. Questionnaire preparation and Precautions to be followed. 23. A copy of Questionnaire 24. Questionnaire analysis and Interpretation 25. Conclusion 26. Recommendation
PROJECT SUMMARY
The project objective included finding the customer
satisfaction, expectations from stockbrokers in Delhi and
NCR regions and deriving the market penetration
strategies for Religare Securities Limited (RSL). In this
project I did a telephonic survey of the customers other
than the Religare and on dead account holders of
Religare Securities to enquire satisfaction level of
customers and to providing recommendations on
increasing customer base.
The project was also focussed upon the changing role of
brokerage houses, SEBI’s Regulation and to understand
role of relationship manager as a financial advisor for
deepening client-RM relationship.
I also tried to find out that there were some clients who
denied shifting
their existing brokerage firm & why some clients were
ready to change their broker firm.
Objective of the study:
The Research project has been carried out to aid the
Religare Securities in offering services that the customer
needs, to improve on some of the existing services of
the firm, to study the customer behaviour towards their
brokerage firms and for helping Religare to increase its
customer base.
INDUSTRY PROFILE:
CRITICAL REVIEW OF LITERATURE:
The Indian Brokerage Industry consists of companies that primarily act as agents
for the buying and selling of securities (e.g. stocks, shares, and similar financial
instruments) on a commission or transaction fee basis.
Security market has two main interdependent segments: Primary market and the
Secondary market.
PRIMARY MARKET deals with the issuance of new securities. Companies,
governments or public sector institutions can obtain funding through the sale of a
new stock or bond issue. This is typically done through a syndicate of securities
dealers. The process of selling new issues to investors is called underwriting. In
the case of a new stock issue, this sale is an initial public offering (IPO).
SECONDARY MARKET is that market in which trading is done of securities that
have already been issued in an initial private or public offering. The secondary
market comprises of brokerage that a broker earns in the buying and selling of
companies that are listed in the stock exchange.
DEVELOPMENT IN BROKERAGE INDUSTRY
Brokerage industry continues to develop rapidly as many of the traditional
restrictions against banking activities within the brokerage industry are being
eliminated. Some commercial banks have as subsidiaries, brokerage houses that
offer discounts and some of them have available accounts that offer all of the
services that are offered by a checking account.
BROKERAGE HOUSES BEATING COMMERCIAL BANKS
The basic function of a brokerage firm is to execute buy and sell orders for clients
and offer information about possible investments free of charge. This activity of
bringing free of charge stock investment reports is one of the main tools that are
utilized by brokerage houses to compete against other firms and to investors it
continues to be an important service.
Although not all investors consider that investment reports is an important
service. Some investors prefer other types of services since many investors don’t
believe that these investment reports are useful. In order to capture this vast
diverse clientele, the brokerage industry has segmented itself. After the
restrictions in commissions were eliminated, several brokerages began to open up
their doors as discount brokerage firms. In actuality, brokerage firms may be
classified into full service brokers and discount brokers.
Full service brokerage firms continue to offer informative stock reports and a level
of service much higher than other brokerage houses. Discount brokerage houses
only dedicate themselves to execute orders for clients. It is many times possible
that a client will not even know who is taking care of the buy or sell order that
they placed. These differences in services and philosophies may lead to great
differences in commission costs and turned in important factor in the return of an
investment.
MAJOR CHANGES IN THE RECENT YEARS
A few of the major developments in the regulation of stock markets in the recent years included -
• providing minimum public shareholding of 25% in case of all listed
companies barring a few exceptions
• listed companies to comply with revised guidelines on corporate governance, including appointment of the independent directors
(under Clause 49) • making PAN compulsory for all categories of investors for opening a
demat account with effect from Apr 1, 2006 • in accordance with the IOSCO recommendations, transactions
executed on the stock exchanges made necessarily settled through the clearing corporations/clearing house of the stock exchanges
• guidelines issued for issue of electronic contract notes • a committee was set up to study the future of the regional stock
exchanges • introduction of Gold Exchange Traded Funds
• Introduction of unique client code for mutual fund schemes
• mutual funds were allowed to invest in ADRs/GDRs and foreign securities within the overall
limit of USD4 bn • Venture capital funds were allowed to invest in foreign securities
• grading of IPOs made mandatory • Permanent Account Number (PAN) was made the sole identification
number for all transactions in securities markets • amendment of clause 32 of the Equity Listing Agreement allowing
companies to send abridged balances sheet and profit and loss
account/auditors report in place of sending the full balance sheet and annual report
• authorized BSE and NSE to set up and maintain corporate bond reporting platforms to capture all information relating to trading in
corporate bonds and both exchanges permitted to begin order driven trade matching platform for listed corporate debt securities with
effect from 1 Jul, 2007 • exclusive email ID to be given by the primary market intermediaries
such as merchant bankers, registrars to issues; share transfer agents etc., for registering
investor complaints.
Source-www.dnb.co.in
REGULATION OF SECURITIES MARKET BY SECURITIES AND EXCHANGE BOARD OF INDIA(SEBI).
A new phase of securities market regulation began with the setting up of
Securities and Exchange Board of India in 1992. Over the period, several changes
in the way securities markets are organized and conducted in India. Major
reforms that were brought in the Indian securities markets since 1992 are
summarized below:
• Nation wide network of trading terminals • Electronic Trading and abolition of Open Outcry systems • Dematerialisation of Shares
• Foreign Participation in Domestic Brokerage Business • Foreign Institutional Investment in Indian stocks
• Venture capital • Investor protection guidelines • Delisting Guidelines
• Corporate Governance and Disclosure Standards • Take Over Code
• Insider Trading • VAR based margining • T+2 Securities Settlement
• Screen based trading of Government Securities
• Introduction of Equity Derivatives • Central Listing Authority
• Mutual Funds in the private sector • Mutual Fund Investments Abroad • Margin Trading
• Electronic Data Information Filing and Retrieval (EDIFAR) • Rating of IPO
• Unique Client Identification
Source-www.dnb.co.in
SEBI’S ACTS AND REGULATIONS FOR DEMAT OR
DEPOSITORY
The Depository’s Act, 1996.
SEBI (Depository or participation) Regulation, 1996.
SEBI(Custodian or securities) Regulation Act, 1996.
Source-www.sebi.gov.in
MODES OF INVESTMENT FOR AN INVESTOR- CAPITAL
MARKETS
A capital market is a market where a government and company can raise
money to fund their operations and investment for long term. Bond market
and share market are a part of capital market
BOND MARKET offers fixed interest financial asset issued by
governments, companies, banks, public utilities and other large entities on
a specified end date. A discount bond pays the bearer only at the ending
date, while a coupon bond pays the bearer a fixed amount over a specified
interval (month, year, etc.) as well as paying a fixed amount at the end
date.
SHARE MARKET is a place where share of the companies are listed. It
provides a common place where a buyer and a seller can come together
and participates in sale and purchase share or other securities.
HISTORY OF CAPITAL MARKET:
The trading on stock exchanges in India used to take place through open out cry
without the use of information technology for immediate matching or recording of
trades, this was very time consuming and inefficient. This imposed limits on
trading volumes and efficiency, in order to provide efficiency, liquidity and
transparency, NSE introduced a nation-wide on-line fully automated screen based
trading system (SBTS)., where a member can punch into the computer quantities
of securities and the price at which he likes to transact and the transaction is
executed as soon as it finds a matching sale or buy order from a counter party.
SBTS matches order on a strict price/time priority and hence cuts down on time,
cost and risk of errors, as well as fraud resulting in improved operational
efficiency, it enables market participants, irrespective of their geographical
locations, to trade with one other simultaneously, improving the depth and
liquidity of the market.
STOCKS SHAPE THE ECONOMY BY:
Raising capital for businesses
The Stock Exchange provide companies with the facility to raise capital for expansion through selling shares to the investing public.
Mobilizing savings for investment
When people draw their savings and invest in shares, it leads to a more rational allocation of resources because funds, which could have been
consumed, or kept in idle deposits with banks, are mobilized and redirected to promote business activity with benefits for several economic sectors
such as agriculture, commerce and industry, resulting in stronger economic growth and higher productivity levels of firms.
Facilitating company growth
Companies view acquisitions as an opportunity to expand product lines, increase distribution channels, hedge against volatility, increase its market
share, or acquire other necessary business assets. A takeover bid or a merger agreement through the stock market is one of the simplest and
most common ways for a company to grow by acquisition or fusion.
Profit sharing
Both casual and professional stock investors, through dividends and stock price increases that may result in capital gains, will share in the wealth of
profitable businesses.
Corporate governance
By having a wide and varied scope of owners, companies generally tend to improve on their management standards and efficiency in order to satisfy
the demands of these shareholders and the more stringent rules for public corporations imposed by public stock exchanges and the government.
Consequently, it is alleged that public companies (companies that are owned by shareholders who are members of the general public and trade
shares on public exchanges) tend to have better management records than privately-held companies.
Creating investment opportunities for small investors
As opposed to other businesses that require huge capital outlay, investing in shares is open to both the large and small stock investors because a person buys the number of shares they can afford.
Government capital-raising for development projects
Governments at various levels may decide to borrow money in order to finance infrastructure projects such as sewage and water treatment works
or housing estates by selling another category of securities known as bonds. These bonds can be raised through the Stock Exchange whereby
members of the public buy them, thus loaning money to the government. The issuance of such bonds can obviate the need to directly tax the citizens
in order to finance development.
Barometer of the economy
At the stock exchange, share prices rise and fall depending, largely, on market forces. Share prices tend to rise or remain stable when companies
and the economy in general show signs of stability and growth. An economic recession, depression, or financial crisis could eventually lead to
a stock market crash.
MAJOR STOCK MARKETS IN THE WORLD
Source: World Federation of Exchanges - Statistics/Monthly as on December’2009
Economy Stock Exchange Trade Value
(USD Billions)
Market Capitalization
(USD Trillions)
United States
New York Stock Exchange 177.4 118.3
Japan
Tokyo Stock Exchange 39.9 33.0
United States
NASDAQ 289.5 32.3
Europe
Euronext 19.8 28.6
United Kingdom London Stock Exchange 33.9 27.9
China
Shanghai Stock Exchange 50.6 27.0
Hong Kong
Hong Kong Stock Exchange 15.0 23.0
Canada Toronto Stock Exchange 12.3 16.7
Spain
BME Spanhish Exchanges 15.1 14.3
Brazil
BM&F Bovespa 0.626 13.3
India
Bombay Stock Exchange 0.263 13.0
Germany
Deutsche Börse 21.8 12.9
Australia Australian Securities Exchange 0.931 12.4
India
National Stock Exchange of India 0.786 11.6
Switzerland
SIX Swiss Exchange 0.786 10.6
China
Shenzhen Stock Exchange 27.7 8.6
Korea
Korea Exchange 15.5 8.3
Nordic Countries
NASDAQ OMX Nordic Exchange 0.733 8.1
South Africa
JSE Limited 0.335 7.9
Russia
MICEX 0.335 7.3
Taiwan
Taiwan Stock Exchange 0.905 6.5
Italy
Borsa Italiana 0.855 6.5
TRADING NETWORK:
NSE has mainframe computer which is connected through Very Small Aperture
Terminal (VSAT). Installed at its office. The main computer runs on a fault
tolerant STRATUS mainframe computer at the Exchange broker have terminal
installed at their premises which are connected through VSATs/leased lines.
An investor informs a broker to place an order on his behalf, the broker enters the
order through his PC and it send signals to VSAT lines. The signal are directed to
mainframe computer at NSE via vsat at NSE’S office. A message related to the
order activity to the order activity is broadcast is broadcast to the respective
member. The order confirmation matches with the existing passive orders,
otherwise it waits for the active orders to enters the system. On order matching a
message is flashed is broadcast to the respective member. The trading system
operates on a strict price time priority. All orders received on the system are
sorted with the best priced order getting the first priority for matching i.e.
Order is cancelled or modified. The best buy order match with the best sell order.
Similar priced orders are sorted on the time priority basis, i.e. the one that came
in early gets priority over the later one. Orders are matched automatically by the
computer keeping the system transparent, objective and fair. Where an order
does not find a match , it remains in the system and is displayed to the whole
market, till a fresh order comes in or the earlier
.
CORPORATE HIERARCHY
The trading member has the facility of defining a hierarchy amongst its user of the
NEAT system. This hierarchy comprises.
CORPORATE MANAGER
COMPETITIVE ANALYSIS OF SECURITIES
INDUSTRY
BRANCH 1 BRANCH 2
DEALER DEALER DEALER DEALER
WHAT IS A DEPOSITORY AND DEPOSITORY
PARTICIPANT(DP)?
A depository shares a huge similarity with a bank. It helps the investors to
hold the shares in an electronic form. The investor has to open an account
with the depository, through a Depository Participant.
The DP is an intermediary between the depository and the investor. In India, there are two depositories, viz., National Securities Depository and
Central Depository Services.
A number of banks (HDFC Bank, ICICI Bank, SBI, and so on), brokers
(Religare,India Infoline, Motilal Oswal and Indiabulls ) and institutions function as DPs.
BASIS FOR CHOOSING A DEPOSITORY PARTICIPANT
Some of the important factors for selection of a DP can be:
� Convenience: proximity to the office/residence, business hours.
� Comfort: reputation of the DP, past association, range of services etc. Find out if the DP is in a position to give the specific service you
may need. � Cost: the service charges levied by DP and the service standard.
RELIGARE ENTERPRISES LIMITED
Religare Enterprises Limited (REL) is a global financial services group with a
presence across Asia, Africa, Middle East, Europe and the Americas. In India,
REL’s largest market, the group offers a wide array of products and services
ranging from insurance, asset management, broking and lending solutions to
investment banking and wealth management. The group has also pioneered
the concept of investments in alternative asset classes such as arts and films
.With 10,000 plus employees across multiple geographies, REL serves over a
million clients, including corporates and institutions, high net worth families
and individuals, and retail investors.
Vision Providing integrated financial care driven by the relationship of trust and confidence.
Mission To be India's first Multinational providing complete financial services solution
across the globe.
MANAGEMENT PROFILE
CHAIRMAN AND MANAGING DIRECTOR : MR. SUNIL GODHWANI GROUP CEO: MR. SHACHINDRA NATH. GROUP CFO: MR. ANIL SAXENA. NEW APPOINTS: MR. MANOJ SINGLA AND MR. SUHAS R HARINARAYANAN as co-heads of research at Religare Capital markets.
COMPANY PROFILE
Industry Finance - General BSE
Code 532915
Book
Closure 25/09/2009
Group Religare NSE
Code : RELIGARE
Market
Cap
Rs. 5,288.08
Cr.
ISIN No INE621H01010 Market
Lot 1
Face
Value Rs. 10.00
Source: www.religare.in
RELIGARE SUBSIDIARIES
Religare is driven by ethical and dynamic process for wealth creation. Based on this, the company started its endeavour in the financial market.
Religare Enterprises Limited (A Fortis Healthcare Promoter Group) through
Religare
Securities Limited, Religare Finvest Limited, Religare Commodities Limited and Religare Insurance Advisory Services Limited provides integrated
financial solutions to its corporate, retail and wealth management clients.
It provides various financial services, which include Investment Banking, Corporate Finance, Portfolio Management Services, Equity & Commodity,
Broking, Insurance and Mutual Funds.
Religare operations are managed by more than 2000 highly skilled professionals and have a growing network of more than 150 branches and
more than 300 business partners spread across more than 180 cities in India and a fully operational international office at London.
Religare Securities Limited(RSL) deals into Equity Broking,
Depository Services, Portfolio Management Services, Institutional Equity
Brokerage & Research Investment Banking and Corporate Finance. Company has also established
its strong foothold in Internet Trading and Merchant Banking.
To facilitate free and fare trading process, Religare is a member of major financial
institutions like, National Stock Exchange of India, Bombay Stock Exchange of India, Depository Participant with National Securities Depository Limited
and Central Depository Services Limited, and a SEBI approved Portfolio
Manager.
Religare Commodities Limited(RCL) is a member of NCDEX and
MCX and provides platform for trading in commodities, which is an online facility also. RCL provides platform to both agro and non-agro commodity
traders to derive the actual price of the commodity and also to trade and
hedge actively in the growing commodity trading market in India.
With this realisation, Religare Commodities is coming up with its branches at 42 locations.
Religare Finvest Limited(RFL) is a Non Banking Finance Company
(NBFC) is aggressively making a name in the financial services arena in India.
RFL is primarily engaged in the business of providing finance against
securities in the secondary market. It also provides finance for application in Initial Public Offers to non-retail clients in the primary market. It is also
planning to initiate personal loan portfolio as fund based activity and mutual fund distribution as fee based activities.
Along with this, the company also undertakes non-fund based advisory
operations in the field of Corporate Financing in the nature of Credit Syndication which includes inter alia, bills discounting, inter corporate
deposit, working capital loan syndication, placement of private equity and other structured products.
Religare Insurance Advisory Ltd(RIL): Financial planning is incomplete without protective measure i.e. structured products to take care of event of things that may go wrong.
Consequently, Religare has come up with Religare Insurance Advisory
Services Limited. As composite insurance broker, it deals in both insurance and reinsurance, providing clients risk transfer solutions on life and non-life
sides.
It caters the insurance requirements of both retail and corporate segments with products of all the insurance companies on life and non-life side. It also
caters individuals with a complete suite of insurance
solutions, both life and general to mitigate risks to life and assets.
RELIGARE PRODUCT OFFERINGS
Religare has divided its product and service offering under three broad client interface categories:
“Retail Spectrum”, “Wealth Spectrum” and “Institutional Spectrum” as per following details:-
RETAIL SPECTRUM: Caters to a large number of retail clients by offering all products under one roof through our branch network and online mode. It
deals in Equity and Commodity, Trading Personal Financial Services, Distribution of mutual funds, Distribution of
insurance, Distribution of savings products, Personal Credit, Personal loan services, Loans against
shares, Online Investment. Retail continues to expand its distribution reach across India; covers 2092 business
locations in 557 cities at the end of FY2010.
WEALTH SPECTRUM: To provide customize wealth advisory services to high net worth individuals. It has various products in Wealth Advisory Services,
Portfolio Management Services, International Equity, Priority Client Equity
Services, Arts Initiative.
INSTITUTIONAL SPECTRUM: To forge and build strong relationships with corporate and institutional clients. Its products are Institutional Equity
Broking, Investment Banking, Merchant Banking, Transaction Advisory services.
DETAILS ABOUT PRODUCTS OF RELIGARE SECURITIES
Retail Spectrum Equity Broking
The equity brokerage business in India is segregated into discount brokerage and full service brokerage
and Religare Securities Limited (RSL) has positioned itself in both these market segments. RSL full service advisory brokerage business is conducted
under the “RALLY” brand, where a physical and online interface is available
to the client.
For our equity trading services, the business model combines a dedicated relationship and dealing team behind each client to ensure that RSL services
continuously grow not only in terms of revenue but also in terms of numbers of clients. While the dealing teams continuously keep equity trading clients
updated with market information and are responsible for execution of trades, the relationship team continues to acquire and enroll new clients for
Religare.
R-ALLY (Religare-Ally) as the name suggests is the perfect partner for savvy
investors. Major volumes of stock trading ( more than 95%) of Religare business at present is being done
through Rally trading platform.
This is a CTCL (Computer to computer link) based trading engine provided &
maintained by M/S Financial Technologies Limited & we are using their Odin product for this trading platform.
RALLY clients have the advantage to trade from our branches or trade on their own through internet for which separate product called odin diet is
available.
What are the product offerings in Rally? There are mainly following three trading platforms that are being offering
under R-ALLY: 1. R-ALLY : This is our offline product wherein we have one dedicated dealer
for every client who will execute orders on client’s behalf.
2. R-ALLY Lite (Applet Version): This is also a browser based online trading
platform 3. R-ALLY Pro (Application Based): This is fully loaded feature rich software
on line trading platform.
This application can be downloaded on your system and can be run from any
location.
Products Subscription Fee (Rs.) Enrolment Deposit
(Rs.)
RALLY Nil Nil
RALLY LITE(Browser
based)
Nil 5000
RALLY PRO (Application
based)
1800 Nil
• Subscription fee is a yearly fee, which is refundable to the client if the total brokerage generated
by such client over a period of one year from the date of subscription exceeds the subscription
amount paid by the client.
• Clients opting for RALLY LITE would be required to maintain a minimum of Rs. 5000/- as
Enrolment deposit by way of cash/stock. • Advance Depository charges are as applicable.
SWOT ANALYSIS OF RELIGARE SECURITIES SWOT analysis focuses on the internal and external environments,
examining strengths and weaknesses in the internal environment and opportunities and threats in the external environment.
SWOT Analysis Of Religare
STRENGTHS Services
� As a product Religare is a extremely innovative product with very less
cost. � Services like online trading facility, institutional and domestic broking,
customized research reports with almost 80% efficiency etc give Religare an edge over its competitors.
� Religare provides other support services that make retail investors more confident and assured with their trading.
� SMS alerts (allowing traders and investors to make the most of the available opportunities), Softer, intangible features like imagery, equity
driving preference. � Through efficient trading processes Investors can place their orders
directly on the Internet, do all the information seeking and basically own the investing process.
Relationship managers
� The company has a team of relationship managers who are dedicated
to the service of clients. � These RMs take care of clients’ even smallest problem and make
efforts to solve them through their expertise. � They also help their clients to invest their wealth in the market.
Distribution Network
� Religare with almost 2092 business locations in 557 cities briefed up by comprehensive online research, advice and transaction services.
� In near future expect to make 200000+ retail customers being serviced through centralized call centre / web solution.
Marketing
� Religare (previously Fortis securities) is a veteran equities solutions
company with loads of experience in the Indian stock markets. It does not claim expertise in too many things.
� Religare’s expertise lies in stocks and that's what it talks about with
authority. So when it says that investing in stocks should not be confused with trading in stocks or a portfolio-based strategy is better
than betting on a single horse, it is something that is spoken with years of focused learning and experience in the stock markets.
Products
� Company’s product line is a basket of Financial services offered to its clients.
� It’s a all product single shop for investors. Here we offer Along with Equity, Mutual funds, personal loans, PMS, Corporate Finance and
Investment banking etc to its customers. Its products are customized
according to individual demand and preference.
WEAKNESS Customer Satisfaction
� As far as customer satisfaction goes Religare has to tighten its Boots.
� The company does not have enough Relationship managers to cater to huge customer base. The account opening takes 2 working days
whereas Indiabulls takes half the time for this purpose.
Branding � Though the company has a efficient products but large part of
investment interested population does not know the company.
� The most basic expectation for a trader or investor when one begins trading is that one must get timely delivery of shares and proceeds
from sale of shares.
� Also ones cash balances with the broker must be safe and secure. Though this confidence in the broker comes with time and experience,
good and transparent practices also play a major role in imbibing confidence in traders.
Competition from banks and Niche Players
� Most of the banks due to good branding have the faith of the customers of their banking database. So they enjoy the liberty of huge
database and customers find it more reliable to trade with them rather than with an unknown broker.
� Also banks like HDFC Bank and ICICI Bank have the advantage of
linking the trading accounts of their customers to saving accounts. This
makes trading easier, and at the same time a trader withdraws exactly as much money from his account as is needed to complete the trade.
� Similarly sales proceeds are credited directly to saving account.
� Niche players’ presence as sub brokers or Small broking house like
Abhipra, Way to wealth etc. attracts a good share of market and run parallel to giant companies.
OPPORTUNITIES The external environment analysis may reveal certain new opportunities for
profit and growth.
Ever-increasing market
� After the NSE brought the screen based trading system, stock markets are now more secured which has attracted lot of retail investors and
the demand is increasing day by day. � This has resulted in improved liquidity and heavy volumes on
transactions. Religare has been a mega player and is known for being a mover of stocks. It is also known for putting big deals through
and enjoys good networking with the FIIs.
Improving Technology
� In country like India technology is always improving which gives the company a chance to keep on improving their product with time with
respect to the small brokers. � Also with SEBI lying down some strict guidelines small brokers are
finding it harder to retain the customers with no research departments and small capital.
� The traditional business model is highly dependent on a large network of sub-brokers, and many established players may not have systems
(technology, customer service, etc.) capable of directly servicing so many retail customers.
Unfulfilled needs of the customers
� With so many competitors offering their products in the market but no one is able to completely satisfy the customers. Some have the
problem of lack of information or some were scared of volatility of the
stock markets. Religare has the opportunity to tap this unsatisfied set of customers.
� The Internet serves to break all barriers to information, as it offers an
extremely hassle-free investing platform. And, Religare hopes to fully utilize and capitalize on this platform.
Education Level
� The education level in the country is improving year after year as far as technology goes. With that the understanding of the stock market is
also increasing and a lot of retail investors are steeping in the markets which is being shown by increasing volumes, transactions and indices.
THREATS
New Competitors
� A lot of new competitors are trying to enter the market in this bullish run to taste the flavor of this cherry resulting in lots of competition and
is creating little confusion in the minds of the customers about the services provided by the broker.
� Also many banking firms are entering into the market with huge
investment. Competitors like ICICI, kotak, hdfc are posing a lot of threats to the company.
Technology based business
� Online trading is totally based on the technology which is quite complex. Typically, the technology solution has to start from the
Internet front-end (or the screen that you see when you begin
trading). � Then it needs to get into the ‘middle tier' of risk management systems
that assess data from banks and depository participants (DP), calculate client risk at that point in time, and give the 'Go/No go' advice to the
trade. So technology is a kind of threat because unless until it is working properly it is good but internet is not that safe.
COMPETITORS OF RELIGARE
Company Background:
India infoline started e-broking was started under the brand name of 5
paisa.com. Apart from offering online trading in stock market the company offers
mutual funds online. It also acts as a distributor of various financial services i.e.
GOI securities, Company Fixed Deposits, Insurance. It has a limited ground
network, present in 20 Cities.
Online Account Types
•Investor Terminal: Investors / Students
•Trader Terminal: Day Traders / HNI’s
Pricing for retail clients
Investor Terminal
•Account Opening: Rs 500
•Demat 1st Yr: Rs 250
•Initial Margin: Rs 2500(Compulsory)
•Min Margin Retainable: Rs 1000
Brokerage
• Trading 0.10% each side + ST
• Delivery 0.50% each side + ST
Pricing for HNI clients(high networth individuals)
• Account Opening: Rs 500
• Demat 1st Yr: Rs 250
• Initial Margin: Rs 5000(Compulsory)
• Min Margin Retainable: Rs 1000
Brokerage:
• Trading 0.10% each side + ST
• Delivery 0.50% each side + ST
(Negotiable to 0.05% each side & 0.25%)
Account Access Charges
Monthly Rs 800, adjustable against Brokerage
Yearly Rs 8000, adjustable against brokerage
Problems Of 5 Paisa
Downtime
Recent past 5 paisa Trader Terminal (T.T) is experiencing high frequency
downtime between 3 – 3:30p.m due to server load.
Manual Accounting
The 5 paisa accounting system is manual, Online fund transfer through bank is
not credited instantly. Limit is provided EOD for shares sold from DP, or call
Similarly limit released for shares sold under BTST is manual Delay in receiving
pay-out of clear funds from trading to Bank Account.
Min Account Balance
Concept of Min Rs1,000 is to be maintained in form of cash / securities to keep
account active. This can be withdrawn only on closure of account.
Company background
Kotak Securities limited is a joint venture between Kotak Mahindra Bank and
Goldman Sachs.
Online Account Type
• Free Way: Flat Rs 999 Cover Charge p.m, 0.03% per transaction
• High Trader: 6 Times Exposure Cash & Derivatives, Auto sq off 2:55
Pricing of Kotak
• Account Opening: Rs 500 • Demat: Rs 22.5 p.m
• Initial Margin: Rs 5000(Compulsory)
• Min Margin Retainable: Rs 1000
• Brokerage Slab wise: Higher the volume, lower the brokerage. Even older
customers (on 0.25% & 0.40%) have been moved to the slab wise structure.
Problems of Kotak Securities
• Rigid Account Opening Terms
• No Flexibility of A/c opening charges (Rs 500) + Compulsory margin Rs 5000/- Account opening free with Rs 10,000 Margin OR Competitor Contract Note.
• No Flexibility in Leverage – Dependent on Type of Account (4 to 6 times only) No flexibility in Brokerage, driven by slab structure.
• No Customization of commercial Terms.
• Restricted Access to Terminal like product. • KEAT Desktop restricted distribution on payment of Rs 500, Non refundable.
Other Charges:
• Rs 22.5 p.m towards DP AMC charges • DP incoming charges extra, 0.02%
• Rs 1,000 as retainable Margin to keep account active • Rs 25 per call after 20 calls for the month
Company Background
India Bulls is a retail financial services company present in 70 locations
covering 62 cities. It offers a full range of financial services and products ranging
from Equities to Insurance. 450 + Relationship Managers who act as personal
financial advisors
Online Account Type
• Signature Account: Plain Vanilla Account with focus on Equity Analysis. The
equity analysis is a paid service even for A/c holders
• Power India bulls: Account with sophisticated trading tools, low commissions
and priority access to R.M
Pricing of IB Accounts
Signature Account
•Account Opening: Rs 250
•Demat: Rs 200 if POA is signed, No AMC for this DP
•Initial Margin: NIL
•Brokerage: Negotiable
Power India Bulls
•Account Opening: Rs 750
•Demat: Rs 200 if POA is signed, No AMC for this DP
•Initial Margin: NIL
•Brokerage: Negotiable.
Problems Of India Bulls
Paid Research Services
Access to a research even for an IB trading account holder is charged a min of Rs
500 a month.
Margin funding hoax
The interest on funding starts on leveraged delivery trades from T+1 day itself
@21% p.a , on a daily basis.
The role of Relationship Manager
Each RM is looked upon as a revenue generator and he gets a % on business
generated from client. This can lead to over leveraged (Interest) & high frequency
(Brokerage) trading, which may not be in the best interest of the client.
Company Background:
ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an affiliate of
ICICI Bank Limited and the Website is owned by ICICI BankLimited.
Account Types:
ICICI Direct e-invest Account:
Premium trading interface of ICICI Direct Link is given to DBC partners and HNI’s
Plain Vanilla Account with focus on 3 in 1 advantage .Differentiated in services
within the account.
1. Cash on spot
2. Margin Plus
Account Opening: Rs 750
Schemes: For short periods Rs 750 is refundable against brokerage generated in
a qtr. These schemes are introduced 3-4 times a year.
Demat: NIL, 1st year charges included in Account Opening Plus a facility to open
additional 4 DP’s without 1st yr AMC.
Initial Margin: Nil
Brokerage: All brokerage is inclusive of stamp duty and exclusive of other taxes.
Slab wise brokerage ranges from 0.75% to 0.25% depending on volume.
Problems of ICICI Direct
Poor online Interface
Slow website interface with no real-time quotes creates dissatisfaction among
high frequency traders
Margin trading restriction
The margin trading system is available up to 2:45 p.m, with outstanding net
positions under margin segment automatically squared off at any time between
2:45 – 3:30 p.m. Thus no control of square off price.
Morning Trades Issue
Being one of the websites with largest no of after hour orders which are pushed
1st thing in the morning, creates a choking of orders to the exchange, causes
delay of confirmations for new order placed during the early morning trades.
Restriction of BTST
The sale of shares purchased is restricted to T+1 day and is not permitted on T+2
Day.
No leverage for Delivery trades
Delivery is restricted to the total money allocated into the trading account.
No flexibility on leverage on Intra-day trades
The leverage of 4 times is available for intra- day trades.
Restriction of Bank Account
The choice of bank is restricted to ICICI Bank.
Higher Brokerage rates with slabs
The delivery brokerage is pegged at 0.75% and trading at 0.10% each side, this
makes is very unviable for customers dealing in large volumes. Although
progressively the delivery and trading brokerage reduce as volumes go up.
Interpretation: Religare ranks only 3rd amongst the Demat account
providers. This is probably because of two main reasons:
1. Lack of promotion and unfocussed approach towards Product awareness 2. Company is relatively new in the market.
Hence, the company should indulge in aggressive marketing and promotion.
RSL MARGINING SYSTEM IN CAPITAL MARKET Religare Securities Limited (RSL) has adopted upfront margining system in both capital market which is explained as follows: In the following system, exposure / trading is allowed to the client after validating his available deposits/capital against Value at Risk (VAR) margin & Span margins in capital market. Further such validation is carried out at order entry level that means if the exposure taken by the client results into the margin requirement in excess of his available capital with RSL the order shall be rejected by the system & will not get through. Religare has classified total stocks being traded on the stock exchanges into six categories from A to E & differential VAR margins ranging from 15% TO 100% are assigned based on the stock category as upfront VAR margin in capital market
segment & span margin in derivative segment. At present there are 586 scrips in approved category of Religare.
HOW RELIGARE MAKES CUSTOMER HAPPY?
Personal Assistance
• Dedicated dealers for facilitating trading and post trade needs.
• Dedicated Relationship Managers for assisting multiple investments needs.
Research & Advisory
• Regular news and updates on market
• Research service over SMS to keep one
• Daily and weekly technical reports
• A complete information report on results and performance individual
companies. Complete reports on various economic sectors and their
performance along with analysis of few major companies in that sector
• Trading calls in Futures & Options
• Daily capsule of Market indices and index movement, national and
international corporate news, and their performance along with forth
coming IPO tracker.
Add-Ons
• Access to all your accounts through your Customer Relationship Number
(CRN)
• Access your ledger balances and account information over internet, branch
and call center
ARTICLE ON “Institutional Brokerages in India: Domestic Brokerages Take Up the Challenge” in financial times. Dated Tue, 2010-05-11 17:02
Indian brokers make ground on bulge bracket - Celent
Domestic brokers in India are starting to challenge their larger international
counterparts, according to a report by consultancy group Celent.
The study, ‘Institutional Brokerages in India: Domestic Brokerages Take Up
the Challenge’, predicts that local brokers will account for 50% of trading in
institutional equities by 2015, compared with 35% in the last year.
While overseas brokers have used global relationships and technology to
dominate the market in recent years, the report notes that local brokers
such as Kotak Securities, ICICI Securities, Motilal Oswal and Edelweiss
have sought to broaden their product offering, improve their technological
infrastructure and become more service oriented.
“Domestic brokerages are no longer content to play second fiddle and are
more comfortable using the latest technology and engaging foreign
vendors,” said Anshuman Jaswal, senior analyst and author of the report.
Part of the predicted increase in the market share of domestic brokers will
be due to the growth in electronic trading, which the study forecasts to rise
to 50% of total trading activity in 2015, from 10% in 2009, as more
domestic institutions adopt the practice.
The study also notes the growing popularity of direct market access (DMA)
among proprietary trading desks and domestic mutual funds, and the
increasing use of algorithms for the equity markets. Tight regulatory
restrictions on algorithms have led many firms to use low-touch DMA,
which requires more human intervention compared to direct DMA.
According to Celent, DMA in India accounted for 5% of trading by
institutional brokers in 2009, but this is expected to rise to 35% by 2012.
Unlike trends seen other in market centres across the world, Celent
suggests proprietary trading is likely to increase in India to 32% of total
trading in 2012, from 22% in 2007.
“Celent believes that [the rise in proprietary trading] indicates a different
stage in the development of the brokerages in India, which have yet to
reach the levels of proprietary trading that exist in the developed western
markets, and also have greater confidence in the continued growth of their
economy and capital markets,” read the report.
Source-www.thetradenews.com
EVALUATING CUSTOMER SATISFACTION
Customer Relationship Management (CRM) is a well known business concept. Managers today are working hard to build and maintain a
relationship with the customer - given the importance of customer lifetime value.
While the concepts of CRM and Customer Lifetime value are well
established and understood by managers, managing customer relationships has become a challenge for many managers.
Several firms have implemented dedicated software tools
(Seibel,salesforce.com etc.) for customer relationship management, and even more number of companies are planning to do the same.
Few firms have even created offices of customer relationship management: Client partners, Account managers, Program Managers etc.
In spite of all these efforts, managers are finding it hard to manage customer relationships.
STRENGHTHNING CUSTOMER RELATIONSHIPS
Depth of relationship between vendor and customer and intensity’s of
customer needs creates a challenge for a salesman or vendor of a marketing firm.
So the first step in managing customer relationship is to know and
understand the levels of customer relationships.
What drives Customer Retention? There are four fundamental drivers of customer retention: 1. Improving Customer Loyalty
2. Preventing Customer Loss 3. Lowering Overall Costs
4. Increasing Total Revenue.
Improving Customer Loyalty is driven mainly by a combination of
delighting your customers, educating them, having effective complaint resolution and high service quality.
Loss Prevention is a critical element that is driven by attrition
management, which entails anticipating when customers are likely to
defect and managing proactive initiatives to stop the same. This has a direct impact on preventing revenue loss.
Alternatively, win back is the process of retaining a customer that has
stated that they no longer want your product or service. However, it needs to be implemented with a full knowledge of the customer’s profit to the
business and the costs of the save offer. Otherwise, you can spend more saving a customer than they will inject into in future profits.
Cost Reduction is about managing customer touch points effectively to
minimize the costs of service and communicate with your customers. This can be done by examining the media and timing of customer contact to
optimize it for impact and cost.
Increase in revenue can be done by encouraging the customers to
take up more products through cross sell, or upgrade their current product plans, which will ultimately results in increased revenues.
To measure customer’s confidence in Religare products and post sales
services, research was conducted through telephone. The target customers were either the non users of Religare products/services or past customers
of the company with dead or closed accounts.
MEASURING CUSTOMER CONFIDENCE IN STOCK MARKETS- A MASTERCARD INDEX OF CONSUMER CONFIDENCE The calendar year 2009 remained a challenging one for the domestic retail sector, as consumers held back big spending, forcing some companies to restructure finances and some companies to postpone their expansion plans. A MasterCard Worldwide Index of Consumer Confidence survey has revealed that 21 of the 24 markets polled across Asia Pacific, West Asia and Africa reflected positive consumer sentiment for the next six months, as the global economy is expected to recover. The index is based on a survey which measures consumer confidence on prevailing expectations in the market for the next six months based on five economic indicators: Economy, Employment, Stock Market, Regular Income and Quality of Life. The Index score is calculated with zero as the most pessimistic, 100 as most optimistic and 50 as neutral.
The latest survey was conducted from 1 October to 9 November 2009 and involved 10,623 consumers from 24 markets. The Asia/Pacific region saw an increase in its consumer confidence index score from six months ago (66.3 up from 38.7) (Chart 6B). Vietnam (90.0), China (85.3) and Singapore (79.4) reflected significantly higher consumer confidence compared to other markets in the region. Most markets showed increased confidence in their Employment outlook, particularly Vietnam and Singapore, which topped the region for confidence in this indicator. Consumers in India continued to be optimistic. They are slightly more optimistic than six months ago (68.0) and a year ago (63.9). Consumer sentiments have gone up on three economic indicators. Consumers are more optimistic about employment, the stock market and regular income. Chart 6B: Mastercard Worldwide Consumer
Confidence Index India Asia- Pacific Region
Green denotes Asia pacific region. Point 50 on X-axis denotes neutral. Above 50 is optimistic and below 50 show pessimism.
RESEARCH METHODOLOGY
The research methodology is helpful in establishing a framework of evaluation and revaluation of primary and secondary research. Data
collection acts as an important tool in taking the decision. It helps the company by:
� Providing a clear picture of their strength & weaknesses.
� Examining the expectations of clients and customer satisfaction in the form of data to make a decision.
QUESTIONNARE PREPARATION: A questionnaire was prepared in
easy and simple language to make it more understandable to the target audience.
PRIMARY RESEARCH was carried out by making telephone calls to
users of other broking house as well as holders of dead or closed accounts of the Religare. Their responses were filled accordingly in the filled
questionnaire.
SECONDARY RESEARCH was carried by utilizing the data of past
users of Religare products or services.
STEPS TAKEN FOR GAINING THE MARKET POTENTIAL For gaining the market potential of Dematerialised accounts following steps were followed:
1. Observation 2. Preliminary information Gathering
3. Data collection 4. Data analysis
SAMPLE SIZE A sample size of about 200 respondents was taken into consideration on
the basis of different brokerage house all over Delhi and NCR regions.
PRECAUTIONS FOLLOWED BEFORE AND DURING THE COMMENCEMENT OF THE RESEARCH
� Respondents were made comfortable before questioning them and ensured that all information collected entirely for the academic
purpose and will be kept confidential.
� It was ensured that the filled questionnaire will not be disclosed. � It was also assured the respondents were not influenced to answer in
any way/form. � Simple language and closed ended were made in the questionnaire to
gather the respondent’s response in the best way.
PREPARED QUESTIONNARE Q.1 In which business are you engaged in?
BUSINESS SERVICE PROFESSIONAL SELF EMPLOYED OTHERS
Q.2 Do you trade in stock markets?
YES NO
Q.3 Which mode of trading do you prefer?
ONLINE OFFLINE
Q.4 How often do you trade in stock markets?
DAILY WEEKLY MONTHLY ON A SPECIAL NEWS.
Q.5 How much do you invest in equity markets?
LESS THAN 10,000 10,000-25,000 25,000-50,000 50,000-1 LAKH 1
LAKH-5LAKHS 5LAKHS-10 LAKHS MORE THAN 10 LAKHS
Q.6 What do you look for when you are going to invest in stock markets?
Low risk, low returns Medium risk, medium returns
High risk, high returns.
Q.7 What has been your investment experience in stocks?
POOR AVERAGE GOOD EXCELLENT
Q.8 How would you rate the services provided by your broker?
POOR AVERAGE GOOD EXCELLENT CAN’T SAY
Q.9 What extra services do you expect from your brokers?
DEPOSITORY SERVICES MARGIN FINANCING TRADING
PORTFOLIO MANAGEMENT SERVICES RESEARCH AND TECHNICAL SERVICES
ALL OF THE ABOVE
QUESTIONNARE ANALYSIS AND INTERPRETATION Which business are you trade in?
Conclusion: It is a common saying that people with less income cannot
survive the harsh conditions of stock markets. Data interpreted manifested the same. Most of the traders as well as the investors in the equity market
are the people with the handsome income source. People having their own business or are self employed invest more time in trading and are online
traders. Also, the people in service with good income packages invest but mostly as offline traders. Professionals are figured most busiest of all, most
of whom consider equity as a waste of both time and money.
Do you trade in stock markets?
Conclusion: As the survey was conducted on the people who are either customers of broking houses other than Religare or are the holders of dead
accounts in Religare. Therefore, the inference was as correct as expected. Most of the past customers of Religare have shifted to other broking houses
and are still trading.
Which mode of trading do you prefer?
Conclusion: As most of the traders have their own business or are self employed and can make huge investments of both time and money,
therefore the mode of trading they prefer is Online, as they trust their abilities and experience more in managing their portfolio than on
relationship managers. People in service although are big investors lacks time and hence prefer offline mode.
How often do you trade in stock markets?
Conclusion: Most of the traders trade on daily basis. They invest on
intraday basis. However, investors buying shares on delivery, keep them for longer duration and trade weekly, monthly or even on any special news.
How much do you invest in Equity markets?
Conclusion: Most of the traders trading on intraday, invests huge amount.
These are the investors who are having their own business and whose investment is either between 5-10 lakhs or even more than 10 lakhs. Major
investors are the group people who trade in stock market either for fun or on trial basis. These are the traders who students, serviceman, professional
or retired individuals. Least share is occupied by professionals due to less availability of time and interest. Only few traders invests more than 10
lakhs, showing that the population having belief in equity market is still
less and considered it quite risky.
What do you look for when you invest in stock markets?
Conclusion: as explained above, only small group of sample considers equity as safe investment. According to the recent survey published in
Business-Standard, only 15 million people in India invests in equity as compare to over 60% population of developed nations. Therefore, most of
the investors trade in delivery with lower risk and lower returns. Only those traders who invest in intraday and carry huge experience are ready to work
with High risk and high returns strategy.
What has been investment experience in stocks?
Conclusion: As the holders of dead accounts were also surveyed, there is good ratio of the people with the poor experience. Most of the people
surveyed were happy with their experience as they were not huge investors and have not taken much risk. People with excellent experience
are the intraday traders and have huge experience in the equity market.
How would you rate the services provided by your broker?
Conclusion: this data represents the people who are the customers of
other broking houses, other than Religare. Dissatisfied group of people forms the major chunk mainly due to unreliable RM’s, undisclosed charges,
and unfulfillment of the promised services. These are the most target customers for Religare to acquire. Other customers were even non
bothered or having good experience with their current broking house.
What extra services do you expect from your broker?
Conclusion: This question was asked to the dissatisfied customers of other
broking houses and past customers of Religare, Many of them were not happy due to lack of proper offline services mainly due to bad experience
with their RM’s. Others were more demanding towards margin financing and hence consider Religare as a better option compared to other broking
houses. Customers specially, of ICICI direct although get bunch of research news everyday but most of the share touch their stop loss rather than
going up. Similar situation was seen among customer of Angel broking where people have dealers rather than RM’s and get no research news at
all. Most of the customers demanded all of the services.
Conclusion
� Most of the traders are having their own business and generally trade
on intraday basis. They carry huge experience and have been in market for a numerous years. Such people are ready to trade with
high risk and high returns basis.
� People in service, students and retired individuals, trade in Equity markets as investors. These are the people who offer the least
brokerage to the company. Although if nurtured with care these individuals can be converted into huge investors which can mainly be
done by increasing Intraday benefits and by removing myth among individuals regarding equity markets.
� Professionals which do not trade in stock market due to less time
availability. Although it is a target group which carries a huge potential.
� Sample collected mainly consists of male population as male forms the major chunk of the investing population. This shows the fear
among female investors towards the equity market.
� Most of the customers of other broking houses complained about the
lack of proper offline services or lack of good margin financing. This can help Religare to establish strong foothold in the market as it has
good margin to offer both in Intraday as well as delivery services.
� Strong competitors of Religare are India Infoline and Indiabulls
mainly due to first mover advantage. But Religare is able to compete with most of these firms due to experienced employees and good
financial background.
Recommendations
� As it was concluded, that most of the female population have fears
and misconceptions towards investments in stock markets. The company should employ more female employees, which will not only
understands the problems of women’s customers and also tried to resolve them in the required way.
� Intraday benefits: It was observed that the majors portion of the population deals in delivery trading as these are the customers
demanding medium risks with medium returns. Such customers are not very fruitful for the company as they offer very low brokerage
income to the company. For these classes of people, more benefits
should be provided on Intraday services. Some of them are: • Low brokerage charges on intraday.
• Regular tips of research news.
� As it was discussed above, that only 15 million out of 1 billion population invests in equity market. This is mainly due to the fears
and myth in the minds of the people towards such markets. Many of them even compares it to Gambling, which is incorrect as trading in
stock markets is based on chart analysis rather than just by luck. Such misconceptions can be corrected by creating awareness
among Indian customers by publishing details of the normal errors done by investors. For an instance- holding shares even after the
stop loss is triggered or investment in single share rather than maintaining a portfolio.
� Selling through canopy near BPO’s, hospitals, business schools, government offices etc can also be one of the major option as it can
help the company to acquire more people in service and professionals.
� In the sample of 200 respondents, it was even noticed that most of
the relationship managers were neglecting their clients and giving more importance to earn brokerage rather than providing profits to
the clients which were resulting in huge losses and hence lost of customers for good.
� More emphasis should be laid upon “buddy welcome schemes” in which the customers were awarded for providing references as it was
seen that most of the client acquisition was through references given by the current customer.
� It was also seen that the company pays more attention on high net worth individuals rather than on small investors which is the major
reason for less customer retention, less customer loyalty and hence more customer loss. Company should remember that if nurtured
properly, these small investors can be converted into huge traders.
� Software in the Religare is “ODIN” which is not vey user friendly as
compared to the “TT ADVANCE” software used in India Infoline. “TT ADVANCE” gives the Relationship managers full back office support
and liberty over transaction according to client’s wish. RM’s also get information regarding Client’s holding and margin.
� More emphasis should be laid upon retaining the customers rather
than new client acquisition as it saves huge cost as well as satisfied and loyal customer provides free branding and value addition to the
company.
� Regular feedback of relationship managers should be taken in order to ensure their proper serving to the clients
� The RM should also suggest his client portfolio management so he can reduce his risk & can maintain a balance in the investment which
he has done so far.
