Summer Internship Project Report on - Copy

8/13/2019 Summer Internship Project Report on - Copy

1/94

1

INTRODUCTION

When we talk about investing in the stock market, the very first thing that

comes to our mind is Religare. Religare is one of the leading retail brokerage firms

in the country. It is the retail broking arm of the Mumbai-based ranbaxy Group,

which has over eight decades of experience in the stock broking business. Religare

offers its customers a wide range of equity related services including trade

execution on BSE, NSE, Derivatives, depository services, online trading,

investment advice etc.

The firms online trading and investment site-www.raligare.com-was

launched on Feb 8, 2000. The site gives access to superior content and transaction

facility to retail customers across the country. Known for its jargon-free, investor

friendly language and high quality research, the site has a registered base of over

one lakh customers. The number of trading members currently stands at over 5000.

While online trading currently accounts for just over 1 per cent of the daily trading

in stocks in India, religare alone accounts for 22 per cent of the volumes traded

online.

The content-rich and research oriented portal has stood out among its

contemporaries because of its steadfast dedication to offering customers best-of-

breed technology and superior market information. The objective has been to let

customers make informed decisions and to simplify the process of investing instocks.

On April 17, 2002 Religare launched Speed Trade, a net-based executable

application that emulates the broker terminals along with host of other information

relevant to the Day Traders. This was for the first time that a net-based trading


2/94

2

station of this caliber was offered to the traders. In the last six months Speed Trade

has become a de factostandard for the Day Trading community over the net.

Religares ground network includes over 250 centers in 123 cities in India,

of which 20 are fully-owned branches.

Religare has always believed in investing in technology to build its business.

The company has used some of the best-known names in the IT industry, like Sun

Microsystems, Oracle, Microsoft, Cambridge Technologies, Vignette, VeriSign

Financial Technologies India LTD, Spider Software Pvt. Ltd. to build its trading

engine and content.


3/94

3

COMPANY PROFILE

Religare Securities Ltd. is a wholly owned subsidiary of Fortis Financial

Services Ltd. A company promoted by the late Dr. Parvinder Singh, Ex- CMD of

Ranbaxy Laboratories Ltd.

The Primary focus of RSL is to cater services in capital Market operations to

Institutional Investors. The company is a member of the National Stock Exchange

(NSE).

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 Ranbaxy Promoter Group Company)

Through Religare Securities Limited, Religare Finvest Limited, Religare Comdex

Limited and Religare Insurance Advisory Services Limited provides integrated

Financial solutions to its corporate, retail and wealth management clients.

Religareis proud of being a truly professional financial service provider managed

by a highly skilled team, who have proven track record in their respective domains.

Religareoperations are managed by more than 1500 highly skilled professionals

who subscribe to Religare philosophy and are spread across its country wide

branches. Today, we have a growing network of 150 branches and more than 300

business partners spread across 180 cities in India and a fully operational

International office at LondonHowever, our target is to have 400 branches and

1000 business partners in 300 cities of India and more than 8 International offices

by the end of 2010.


4/94

4

Unlike a traditional broking firm, Religare group works on the philosophy of

partnering for wealth creation. We not only execute trades for our clients but also

provide them critical and timely investment advice. The growing list of financial

institutions

INFRASTRUCTURE

OFFICES

The company has offices located at prime location in Mumbai, New Delhi,

Kolkatta and Chennai. The offices are centrally located to cater to the requirements

of institutional and corporate clients and retail clients, and for ease of operation

due to proximity to stock exchange and banks. Today we have 2200 offices in 550

cities.

COMMUNICATIONS

The company has its disposal, an efficient network of advance

communication system and intend to install CRM facilities, besides this it is

implementing interactive client information dissemination system which enable

clients to view there latest client information on web. It has an installed multiple

WAN to interconnect the branches to communicate on real time basis.

MANAGEMENT

.Mr. Sunil Godhwani is Chief Executive Officer and Managing Director of

Religare Securities Limited. He is also the CEO and MD of the parent company

Fortis Financial Service Limited and is managing the entire operations of both the

companies.


5/94

5

CEO is supported by various HODs who are creditable professional

consisting of Chartered Accountants, MBAs with varied experience in financial

services and stock broking functions.

The Board of Directors consists of Mr. Harpal Singh as Chairman and Mr. V.K.

Kaul, Mr. Malvinder Mohan Singh, Mr. Shivinder Mohan Singh as Directors.

DEPOSITORY PARTICIPANT SERVICES

Religare Securities Limited has also ventured into depositary services to its

clients and is among leading depository services provider having more than 3000

Crore worth of securities under its custody.

HISTORY OF RELIGARE SECURITIES LIMITED

RELIGARE GROUP OF COMPANIES:

Religare Enterprises Limited group comprises of Religare Securities

Limited, Religare Comdex Limited, Religare Finvest Limited and Religare

Insurance Advisory Limited which deal in equity, commodity and financial

services business.

.RSL is one of the leading broking houses of India and are dealing into

Equity Broking, Depository Services, Portfolio Management Services, Institutional

Equity Brokerage & Research, Investment Banking and Corporate Finance

Extension of services has been a constant feature in Religare to regard the

needs of our clients. Consequently, company is soon going to launch Internet

Trading and Merchant Banking. This would take care of different investment needs

of different classes of investors


6/94

6

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 (I) Limited, and a SEBI approved

Portfolio Manager

COMPETITIVE EDGE IN MARKET

1. Participant on the countrys premium exchange: Religare is amember of the countrys premium stock exchange- The National Stock

Exchange of India (NSE) as well as Bombay Stock Exchange (BSE)

Clearing membership on Capital & Derivative Segments:It has clearing membership on both the Capital Market and Derivative segments

of the exchange. We are also authorized to trade the retail debt market.

Depositary Participant with NSDL & CDSL:We are depositary participants with the country premium depositary service-

National Securities Depository limited (NSDL) as well as with the only depository

with a country wide reachCentral Depositary Service Limited (CDSL)

Leading Private sector bank as partner:Our banking partner is HDFC Bank, ICICI Bank & UTI Bank The foremost

private sector bank in the country, which has the most technologically advanced

infrastructure in the country, with internet banking allowing access to information

24x7.


7/94

7

Prime office location:We have prime office location in the nations political capital and the business

capitalDelhi & Mumbai.

Research Capabilities:We have a dedicated team of analysts in our Bombay office They provide

fundamental analysis of stock and markets, which are fundamentally strong and are

helpful for retail investors.

Technical Analysis:A daily technical newsletter is published by our in house technical analyst, who is

a recognized leading practitioner in capital market. He tracks the progress of the

calls on the real- time basis, and advises of any change in the profit points of stop

loss levels.

Thus with this in house services that is provided by Religare Securities Ltd. To

its Clients has given a competitive edge & more over it has given trust and

confidence to its retail investors to as to build a long term relationship with its

clients.


8/94

8

OBJECTIVE

PRIMARY OBJECTIVE

Study of competitive market and to acquire new customer on the basis of needgap analysis.

SECONDARY OBJECTIVE

To analyze, interpret and study the competitiveness of various brokeragehouses.

To know the attitude & preference of the general investors in the Indian capitalmarket.

To analyze the various pros and cons in the capital market.

Making aware them to providing the good service by Indiabulls.


9/94

9

LITERATURE REVIEW

In few years Share Market has emerged as a tool for ensuring ones

financial well being.As information and awareness is rising more and more

people are enjoying the benefits of investing in share market. The main reason

the number of retail share market investors remains small is that nine in ten

people with incomes in India do not know that share market exist. But once

people are aware of Share market investment opportunities, the number who

decide to invest in share market increases .The analysis and advice presented

in this Project Report is based on market research on the saving and

investment practices of the investors and preferences of the investors for

investment in Share market. This Report will help to know about the

investors Preferences in Share market means Are they prefer any particular

Asset Management Company (AMC), Which type of Product they prefer,

Which Option (Growth or Dividend) they prefer or Which Investment

Strategy they follow . This Project as a whole can be divided into two parts.

The first part gives an insight about Share market and its various aspects, the

Company Profile, Objectives of the study, Research Methodology. One can

have a brief knowledge about Share market and its basics through the Project.

The second part of the Project consists of data and its analysis collected

through survey done on 50 people. For the collection of Primary data I made a

questionnaire and surveyed of 50 people. I also taken interview of many

People those who were coming at the Religare Branch where I done my

Project. I visited other AMCs in Kanpur to get some knowledge related to my

topic.This Project covers the topic INVESTMENT IN CAPITAL

MARKET.


10/94


11/94

11

WHAT ARE STOCKS

1.1 The Definition of a Stock :

Plain and simple, stock is a share in the ownership of a company. Stock represents

a claim on the company's assets and earnings. As you acquire more stock, your

ownership stake in the company becomes greater. Whether you say shares, equity,

or stock, it all means the same thing.

1.2 Being an Owner:

Holding a company's stock means that you are one of the many owners

(shareholders) of a company, and, as such, you have a claim (usually very small) to

everything the company owns. Yes, this means that technically you own every

piece of furniture, every trademark, and every contract of the company. As an

owner, you are entitled to your share of the company's earnings as well as any

voting rights attached to the stock.

A stock is represented by a stock certificate. This is a fancy piece of paper

that is proof of your ownership. In today's computer age, you won't actually get to

see this document because your brokerage keeps these records electronically,

which is also known as holding shares in Demat form. This is done to make the

shares easier to trade. In the past when a person wanted to sell his or her shares,

that person physically took the certificates down to the brokerage. Now, tradingwith a click of the mouse or a phone call makes life easier for everybody.

Being a shareholder of a public company does not mean you have a say in

the day-to-day running of the business. Instead, one vote per share to elect the

board of directors at annual meetings is the extent to which you have a say in the


12/94

12

company. For instance, being a Microsoft shareholder doesn't mean you can call up

Bill Gates and tell him how you think the company should be run.

The management of the company is supposed to increase the value of the

firm for shareholders. If this doesn't happen, the shareholders can vote to have the

management removed--well, this is the theory anyway. In reality, individual

investors don't own enough shares to have a material influence on the company. It's

really the big boys like large institutional investors and billionaire entrepreneurs

who make the decisions.

It isnt too big a deal that the shareholders are not the ones managing the

company. After all, the idea is that you don't want to have to work to make money,

right? The importance of being a shareholder is that you are entitled to a portion of

the companys profits and have a claim on assets. Profits are sometimes paid out in

the form of dividends.

The more shares you own, the larger the portion of the profits you get. Your

claim on assets is only relevant if a company goes bankrupt. In case of liquidation,

you'll receive what's left after all the creditors have been paid. This last point is

worth repeating: the importance of stock ownership is your claim on assets and

earnings.

Another extremely important feature of stock is its limited liability, which

means that, as an owner of a stock, you are not personally liable if the company is

not able to pay its debts. Other companies such as partnerships are set up so that if

the partnership goes bankrupt the creditors can come after the partners

(shareholders) personally and sell off their house, car, furniture, etc. Owning stock

means that, no matter what, the maximum value you can lose is the value of your

investment. Even if a company of which you are a shareholder goes bankrupt, you

can never lose your personal assets.


13/94

13

1.3 Debt vs. Equity:

Why does a company issue stock? Why would the founders share the profits

with thousands of people when they could keep profits to themselves? The reason

is that at some point every company needs to raise money. To do this, companies

can either borrow it from somebody or raise it by selling part of the company,

which is known as issuing stock.

A company can borrow by taking a loan from a bank or by issuing bonds.

Both methods fit under "debt financing." On the other hand, issuing stock is called

"equity financing." Issuing stock is advantageous for the company because it does

not require the company to pay back the money or make interest payments along

the way. All that the shareholders get in return for their money is the hope that the

shares will some day be worth more. The first sale of a stock, which is issued by

the private company itself, is called the initial public offering (IPO).

Shareholders earn a lot if a company is successful, but they also stand to

lose their It is important that you understand the distinction between a company

financing through debt and financing through equity. When you buy a debt

investment such as a bond, you are guaranteed the return of your money (the

principal) along with promised interest payments.

This isn't the case with an equity investment. By becoming an owner, you

assume the risk of the company not being successful. Just as a small business

owner isn't guaranteed a return, neither is a shareholder. As an owner your claim

on assets is lesser than that of creditors. This means that if a company goes


14/94

14

bankrupt and liquidates, you, as a shareholder, don't get any money until the banks

and bondholders have been paid out. Shareholders earn a lot if a company is

successful, but they also stand to lose their entire investment if the company isn't

successful.

1.4 Risk:

It must be emphasized that there are no guarantees when it comes to individual

stocks. Some companies pay out dividends, but many others do not. And there is

no obligation to pay out dividends even for those firms that have traditionally

given them. Without dividends an can make money on a stock only through its

appreciation in the open market. On the downside, any stock may go bankrupt, in

which case your investment is worth nothing. Although risk might sound all

negative, there is also a bright side. Taking-on greater risk demands a greater

return on your investment. This is the reason why stocks have historically

outperformed other investments such as bonds or savings accounts.


15/94

15

INVESTING IN SHARES

While investing is relatively painless, its rewards are plentiful. To

understand why you need to invest, you need to realize that you lose when you just

save and do not invest. That is because the value of the rupee decreases every year

due to inflation. For example, if you ran a household within a budget of Rs100,000

in 2010, to run the same household today (assuming the same set of expenses) you

would probably need Rs125,000--that's Rs25,000 added to your budget because of

inflation! Thus you need to generate an additional Rs25,000 and that can be

possible only by INVESTING your hard-earned money.

2.1 VARIOUS INVESTMENT OPTIONS:

One can invest in various financial instruments like equities (popularly

referred to as shares), bank fixed deposits, National Savings Certificates etc as well

as in gold, real estate etc. Out of these shares give best return on investment.

KEY BENEFITS OF INVESTING IN SHARES

Shares or equities are one of the best investment option for individual

investors due to the following benefits:

Possibilities of higher return:Shares have out performed all the other investment instruments and given

the maximum returns in the long run while the other instruments have barely

managed to generate returns at a rate higher than the inflation rate (6.10%) on an

average shares have given returns of about 17% in a year.


16/94

16

Dividend income:Investments in shares are attractive as much for there appreciation in the share

prices as for the dividends their companies pay out.

Tax advantages:Shares appear as the best investment option if you also consider the unbeatable

tab benefits that they offer. First, the dividend income is tax-free in the hands of

investors. Second, you are required to pay only a 10% short term capital gains tax

on the profits made from investments in shares, if you book your profits within a

year of making the purchase. Third, you don't need to pay any long-term capital

gains tax on the profits if you sell the shares after holding them for a period of one

year. The capital gains tax rate is much higher for other investment instruments: a

30% short-term capital gains tax (assuming that you fall in the 30% tax bracket)

and a 10% long-term capital gains tax.

Easy liquidity:Shares can also be made liquid anytime from anywhere (on sharekhan.com you can

sell a share at the click of a mouse from anywhere in the world) and the

investments can be realised in just two working days.

Considering the high returns, the tax advantages and the highly liquid nature,

shares are the best investment option to create wealth.


17/94

17

WHAT CAUSES PRICES TO CHANGE?

Stock prices change everyday by market forces. By this we mean that share

prices change because of supply and demand. If more people want to buy a stock

(demand) than sell it (supply), then the price moves up. Conversely, if more people

wanted to sell a stock than buy it, there would be greater supply than demand, and

the price would fall.

Understanding supply and demand is easy. What is difficult to comprehend

is what makes people like a particular stock and dislike another stock. This comes

down to figuring out what news is positive for a company and what news is

negative. There are many answers to this problem and just about any investor you

ask has their own ideas and strategies.

That being said, the principal theory is that the price movement of a stock

indicates what investors feel a company is worth. Don't equate a company's value

with the stock price. The value of a company is its market capitalization, which is

the stock price multiplied by the number of shares outstanding. For example, a

company that trades at Rs.100 per share and has 1,000,000 shares outstanding has

a lesser value than a company that trades at Rs.50 but has 5,000,000 shares

outstanding (Rs.100 x 1,000,000 = Rs.100,000,000 while Rs.50 x 5,000,000 =

Rs.250,000,000). To further complicate things, the price of a stock doesn't only

reflect a company's current value--it also reflects the growth that investors expect

in the future.

The most important factor that affects the value of a company is its earnings.

Earnings are the profit a company makes, and in the long run no company can

survive without them. It makes sense when you think about it. If a company never


18/94

18

makes money, they aren't going to stay in business. Public companies are required

to report their earnings four times a year (once each quarter). The reason behind

this is that analysts base their future value of a company on their earnings

projection. If a company's results surprise (are better than expected), the price

jumps up. If a company's results disappoint (are worse than expected), then the

price will fall.

So, why do stock prices change? The best answer is that nobody really

knows for sure. Some believe that it isn't possible to predict how stocks will

change in price while others think that by drawing charts and looking at past price

movements, you can determine when to buy and sell. The only thing we do know

as a certainty is that stocks are volatile and can change in price extremely rapidly.

HERE ARE THE IMPORTANT THINGS TO GRASP ABOUT

THIS SUBJECT:

1. At the most fundamental level, supply and demand in the market determine

stock price.

2. Price times the number of shares outstanding (market capitalization) is the value

of a company. Comparing just the share price of two companies is meaningless.

3. Theoretically earnings are what affect investors' valuation of a company, but

there are other indicators that investors use to predict stock price. Remember, it is

investors' sentiments, attitudes, and expectations that ultimately affect stock prices.

4. There are many theories that try to explain the way stock prices move the way

they do. Unfortunately, there is no one theory that can explain everything.


19/94

19

THE BULLS, THE BEARS, AND THE FARM :

On a stock market, the bulls and bears are in a constant struggle. If you

haven't heard of these terms already, you undoubtedly will as you begin to invest.

THE BULLS:

A bull market is when everything in the economy is great, people are finding

jobs, GDP is growing, and stocks are rising. Things are just plain rosy! Picking

stocks during a bull market is easier because everything is going up. Bull markets

cannot last forever though, and sometimes they can lead to dangerous situations if

stocks become overvalued. If a person is optimistic, believing that stocks will go

up, he or she is called a "bull" and said to have a "bullish outlook."

THE BEARS:

A bear market is when the economy is bad, recession is looming, and

stock prices are falling. Bear markets make it tough for investors to pick profitable

stocks. One solution to this is to make money when stocks are falling using atechnique called short selling. Another strategy is to wait on the sidelines until you

feel that the bear market is nearing its end, only starting to buy in anticipation of a

bull market. If a person is pessimistic, believing that stocks are going to drop, he or

she is called a "bear" and said to have a "bearish outlook."

THE OTHER ANIMALS ON THE FARM :

Chickens and Pigs Chickens are afraid to lose anything. Their fear overrides

their need to make profits and so they turn only to money-market securities or get

out of the markets all together. While it's true that you should never invest into


20/94

20

something over which you lose sleep, you are also guaranteed never to see any

return if you avoid the market completely and never take any risk.

Pigs are high-risk investors looking for the one big score in a short period of

time. Pigs buy on hot tips and invest in companies without doing their due

diligence. They get impatient, greedy, and emotional about their investments, and

they are drawn to high-risk securities without putting in the proper time or money

to learn about these investment vehicles. Professional traders love the pigs, as it's

often from their losses that the bulls and bears reap their profits.

WHAT TYPE OF INVESTOR WILL YOU BE?

There are plenty of different investment styles and strategies out there. Even

though the bulls and bears are constantly at odds, they both can make money with

the changing cycles in the market. Even the chickens see some returns, though not

a lot. The one loser in this picture is the pig.

Make sure you don't get into the market before you are ready. Be

conservative and never invest in anything you do not understand. Before you jump

in without the right knowledge, think about this old stock market saying:

Bulls make money, bears make money, but pigs just get slaughtered!


21/94

21


22/94

22

BUYING AND SELLING OF SHARES

4.1 DIFFERENT WAYS OF INVESTING IN SHARES:

There are basically two ways of investing in shares:

a) Purchase shares from the primary market (i.e. IPOs):The first time that a companys shares are issued to the public, it is By a process

called the initial public offering (IPO). In an IPO the company offloads a certain

percentage of its total shares to the public at a certain price. Most IPOs these days

do not have a fixed offer price. Instead they follow a method called the bookbuilding process, where the offer price is placed in a band or a range with the

highest and the lowest value.

The public can bid for the shares at any price in the band specified. Once the

bids come in, the company evaluates all the bids and decides on an offer price in

that range. After the offer price is fixed, the company either allots its shares to the

people who had applied for its shares or returns them their money.

b)Trade in the secondary market, i.e. stock exchanges:Once the offer price is fixed and the shares are issued to the people, stock

exchanges facilitate the trading of shares for the general public. Once a stock is

listed on an exchange, people can start trading in its shares. In a stock exchange the

existing shareholders sell their shares to anyone who is willing to buy them at a

price agreeable to both parties. Individuals cannot buy or sell shares in a stock

exchange directly; they have to execute their transactions through authorized

members of the stock exchange who are also called stock brokers.


23/94

23

FUNCTIONS OF STOCK MARKET

In order to understand how the stock market operates, you should have

knowledge about the role of following institutions / organist ions:

a) Stock exchanges,b) Brokers,c) Registrars,d) Depositories and their participants, ande) Securities and Exchange Board of India (Sebi)

a) Stock exchanges:

A stock exchange is the marketplace where companies are listed and where the

trading happens. There are different stock exchanges in the country, the pre-

dominant being the National Stock Exchange (NSE) and the Bombay Stock

Exchange (BSE).

b) Brokers:

A stock exchange functions through its members called brokers. If you want

to buy or sell a share, you contact a broker. Each stock exchange has a limited set

of brokers and these brokers contact each other using trading terminals to find out

who is interested in the share you want to buy or sell. Brokers have terminals

linked to the BSE or the NSE and they directly purchase or sell shares using these

terminals. The entire transaction happens electronically or through websites like

www.religaresecurities.com.

Brokers may also authorize a sub-broker to conduct the transactions on

behalf of them.


24/94

24

Since brokers are providing a service they charge you for the same.

Normally this payment is not a flat rate, but a commission of the transaction value.

Brokerages normally range from 0.5% to 1% for delivery-based transactions and

0.05% for intra-day transactions.

c) Registrars:

The registrar for each company maintains records of all the shareowners of

the company and the number of shares that they own. Whenever an ownership

changes takes place, the registrar updates the shareholders database.

d) Depositories and their participants:

Depositories are organizations that hold shares of investors, on request, in

electronic form through a registered Depository Participant.

It can be compared with a bank as it holds securities in an account, transfers

securities between accounts on the instruction of the account holder, facilitates the

transfer of ownership without the account holder needing to handle securities and

makes the safekeeping of shares easy.

The agent through which a depositories interfaces with the investor is

known as a depository participant.

You can create a demat account with a DP, who will keep an account of all

the shares you own. This is much like the banking system, where you just create an

account and have a passbook which updates you on the money you own and the

transactions you have made. In your demat account you own shares in an

electronic format and your account gets updated as you buy and sell shares.


25/94

25

e) SEBI:

The regulatory body that governs all stock market transactions is the

Securities and Exchange Board of India. SEBI forms rule and regulations thatgovern transactions in securities market and that the stock exchanges and other

intermediaries follow all such rules and regulations set by it and/or the

government. SEBI also looks into investor complaints against companies. It is

quasi-judicial and can try cases and pass judgments against any market

participants. It also looks into mergers and acquisitions of companies.

4.3 BEFORE INVESTING:

To start investing in shares you need to open a stock-broking account with a

registered broker and a demat account with a Depository Participant. When you

open a religare First Step account, you get everything you need to start investing

in shares. Religare offers trade execution on both the BSE and the NSE, and being

a DP it also provides you a free (conditions apply) demat account along with your

trading account.

4.4 Placing An Order:

To facilitate the buying and selling of shares, Religare offers multiple trading

channels. You can, for example, walk into any of our 250 share shops across 120

cities in India and get your orders executed. You can, on the other hand, even trade

online through our site Religaresecurities.com. For advanced traders we also have

a special online trading software called Speed Trade.

You can also call on our Dial-n-Trade number, which is serviced by a dedicated

call centre, and place an order with a Dial-n-Trade executive. When you buy a


26/94

26

share, you specify the company whose shares you want to buy, the quantity of

shares you want to buy and the price at which you want to buy them. If you don't

specify the price, the shares will be bought at the market rate prevalent at that time.

The process of selling a share is similar to the process of buying a share. Again

here you have to specify the company, the number of shares to sell and the price at

which you want to sell them. If you don't specify the price, the shares will be sold

at the prevailing market price.

4.5 DO I KNOW WITH WHOM I AM TRANSACTING WITH?

When you transact in a share, you are basically placing an order throughyour broker. Transactions happen through exchange systems through anonymous

order matching mechanism.

Therefore the details of counter party to your transactions are not known to

you. You get unique transaction numbers as allotted by the Exchange from your

broker.

Transactions are settled on a daily rolling settlement basis. All the

transactions carried through the day are summarized by the Exchange at the end of

the day. You have to settle your transactions with your Broker and the Broker in

turn settles transactions with the stock exchange. This process of settlement is

called a settlement cycle and the time taken for this is currently T+2 days. i.e., the

settlement will occur two working days after you make the trade. You need to pay

for the purchases/losses before the settlement deadline and you will receive

securities after the settlement deadline. Similarly you need to deliver securities

sold before the deadline and you receive payment for sale/profit after the

settlement deadline.


27/94

27

If you have an online trading account and a de-mat account with religare

then settlement process for securities happens as a paperless transaction.


28/94

28

HOW CAN ONE KNOW CURRENT PRICE OF

ANY STOCK THE?

Whenever you are buying or selling a share, you will encounter certain terms

related to share prices. These terms deal with the individual price movements of a

single share as well as the price movements of all the shares. For every share,

typically there are four price parameters.

a)Open:This is the price at which the share opened on a particular day, that is the

price at which the first purchase of the share was made during that day.

b)High:This is the highest price that a share went up to on a given day, or the highest

price the investors paid for that share.

c)Low:This refers to the lowest price that a share fell to during a day, or the lowest

price an investor paid for that share.

d)Close:This is the price at which the share closed on that day or the price for the

last trade of that day. At any given point of time, the share price will fluctuate

between the highs and the lows, sometimes reaching new highs, sometimes fallingto new lows.

When trading in shares, you need to mention the price point at which you want to

buy or sell. To specify the price point, it helps if you know the statistics or the


29/94

29

trends of your stock, and the stock's opening and closing prices of the previous

days.

You can also trade in shares without specifying the pricethis is known as a

market order. In this case the trade happens at the market price at that point of

time.

4.3 TRACKING THE STOCK MARKETThe BSE Sensex (Bombay Stock Exchange Sensitive Index)

measures the movement of 30 most actively traded shares on the BSE. These 30

companies represent a cross-section of sectors of the economy.

Similar to the BSE Sensex is the Nifty or the S&P CNX Nifty, which

measures the movement of the NSE. This index tracks 50 stocks, which represent

about 60% of the market capitalization of the NSE.

The upward or downward movement of the Sensex or Nifty is a typical

indication of whether the share prices are going up or down in general.

If the Sensex goes up on a particular day, it doesn't mean that the share

prices of all companies would have gone up on that day. Tracking the movement of

stock indices over a longer period is an important part of intelligent investing.

4.4 EARNING FROM INVESTMENTSShares can give you returns in two forms:

a) Appreciation in share prices

You buy shares with the belief that their price will increase and that when

this happens you will be able to sell off your shares and earn profit. For example, if


30/94

30

you bought a share for Rs100 three years ago and it is Rs500 today, then you have

earned Rs400 in three years.

c)DividendWhen a company makes profits, it can choose to share part of its profits with

its shareholders by paying out dividend. This dividend is paid as a percentage of

the face value of the share. For example, a company may declare a dividend of

25%. Then if the face value of its share is Rs10 you will get Rs2.50 for every share

you own of that company, irrespective of the market price.

In itself this might not be much, but over a longer period of time or if you

have a lot of shares, you could earn quite a bit from the dividend itself. The best

thing about dividends is that they are tax free in the hands of investors. Dividend

yield stocks are known to give returns higher than fixed deposits.

[Dividend yield = (dividend per share / market price of the share) x 100].

Religare informs its customers of good dividend yield stocks from time to

time.

4.5 EXPENSES DURING A TRANSACTIONEvery share transaction attracts some tax or the other. Some of the main

expenses are as follows:

a) Capital gains tax:

If you purchase a share and sell it at a price higher than the purchase price

and if this sale is within a year of the purchase, then approximately 10% capital

gains tax is levied on the profit that you make. For example, if you bought a share

for Rs100 on January 1, 2013 and sold it for Rs150 on July 1, 2013, then you have


31/94

31

to pay a tax of 10% on the Rs50 profit that you make. If you sell after a year of

purchase, there is no tax on the long-term gains.

b) Securities transaction tax

Securities transaction tax (STT) is levied by the government on every

transaction you do on a stock exchange. You don't have to pay this separately; it's

collected by your broker. As per the Union Budget 2013 the STT for cash segment

transactions will be 0.10% (sell as well as buy) on delivery-based transactions and

0.025% on intra-day sell transactions.

c) Brokerage

Brokers get a commission on every trade that they do for you. This

commission varies from broker to broker; at sharekhan.com the brokerage is 0.5%

for delivery-based transactions and 0.05% for intraday transactions. On the

brokerage amount you are required to pay a service tax to the government (to be

collected by the broker). There could also be separate transaction charges in the

nature of Exchange turnover based charges, stamp duty on transactions etc. The

brokerage varies depending on the service that the broker provides you. Some

brokers, such as Sharekhan, offer its clients regular updates on companies, multiple

means to transact and customer service support.

d) Depository fees

Since most of the shares exist in a dematerialized form, every time you buy

or sell shares the transactions are being noted by your DP. The DPs normally levy

a charge which is an annual charge and also .a charge on each transaction.


32/94

32

Selecting the

Right shares?


33/94

33

SELECTING THE RIGHT SHARES

5.1 INVESTMENT DECISIONS:

Your investment decisions should not be based on rumors, gut feel or emotions;

but should be taken after a careful study of facts. Most investors who have made

their money in the stock market are those who have been patient, have backed their

investments with logic and have never lost sight of common sense.

Typically there are two ways of selecting the right stock:

a) fundamental research

b) technical analysis.

a) Fundamental research:This requires you to rate a stock based on its historical performance and growth

parameters. This type of research involves a careful scrutiny of the financials of a

company.

b) Technical analysis:This requires you to predict the trend in the market or the price of a company

based on historical price movements, using certain statistical parameters.

Sharekhan offers a selection of stocks based on both fundamental and technical

research techniques with different time frames for both types of calls.

5.2 COMPONENTS OF FUNDAMENTAL RESEARCH:

A fundamental researcher looks at the performance of a company over a

period of time as well as its future growth prospects. He might compare this data

with that of the other companies in the same sector and measure the same against a


34/94

34

stock market index. Most of the data necessary for doing fundamental research

comes from the quarterly and annual reports of companies as well as from the

analysis of their stock prices. A fundamental researcher tidies the following: (1)

annual reports and (2) ratios like EPS, PER etc.

5.3 ANNUAL REPORT:

The annual report of a company provides a wealth of information about the

company. In an annual report investors must look for the Profit & Loss (P&L)

statement and the Balance Sheet.

The P&L statement:The P&L statement gives you the figures relating to the company's

income, expenditure, earnings before interest, depreciation, tax and amortization

(EBIDTA), and net profit. Income, Expenditure and Net profit are the main heads

of the P&L statement.

A) Income:The total earnings of the company from varied sources. This can include

sales, income from dividends, interest received, profit from asset sales, stock

variation (which refers to the closing stock in inventory) and so on. However

attention should be paid to the Sales figure, which pertains to the core business of

the company.

B) Expenditure:The actual money spent on operational expenses (like raw material consumed,

labour costs etc). The Other expenses are interest on servicing a debt, depreciation

etc.


35/94

35

C) Operating profit (popularly referred to as EBIDTA):

Deducting Operational expenses from Sales gives you the Operating profit

D) Net profit:After deducting interest cost, depreciation cost and taxes from Operating

profit you get the profit after tax or the Net profit. Sometimes one-off or non-

recurring items such as the sale of land or investments may boost a companys net

profit. Investors need to assess whether the profit is driven by core operation and is

sustainable.

The Balance SheetThe Balance Sheet gives you an insight into the assets of the

company, its existing liabilities and how its funds are utilized. It can also contain

the details of the sources of the funds (equity capital, reserves, debt etc).

5

RATIOS

Ratios are helpful in fundamental Analysis. Using the data from the

annual report and ratios like EPS and PER, it is possible for you to judge the

financial health of a company.

i) EPS:Earnings per share- this ratio reflects how much the company is earning per

share. The EPS is calculated as net profit divided by the total number of shares that

have been issued. For example, if a company has profits of Rs100 million and has

issued 10 million shares, its EPS is 10. The EPS is used to gauge a company's

profitability per unit of shareholder ownership.


36/94

36

You can use the ratio to compare two companies in the same sector. For

example, companies A and B both earn Rs100, but company A has ten shares

outstanding, while company B has 50 shares outstanding. It means that company A

has an EPS of 10 and company B has an EPS of 2. As a general rule, a higher EPS

drives up the stock price of a company.

However the EPS should not be viewed in isolation and should also be

analyzed along with the industry average as well as the EPS of the other companies

in the same sector.

ii) PER:While the EPS looks at the profitability of a company, the PER (ie the

price/earnings ratio) is the market price equivalent. The PER refers to the market

price divided by the EPS. Thus in the above example if the EPS is 10 and the

market price is 50, then the PER is 50/10 = 5.

Meaning, the share of the company is trading at a multiple of 5. This ratio is

typically compared with that of the other companies in the same sector and you getto know whether the company is on the fast track or is a slow runner. While

comparing the PERs it is better to stick to the companies in a particular industry

and not compare across industries.


37/94

37


38/94

38

HOW TO MINIMISE RISKS AND MAXIMIZE

RETURNS

6.1 DONT ATTEMPT TIMING THE MARKET:

Buy when stocks are falling, sell when these are rising. This works well

when you are a long-term investor and there is an extended bear or bull run. Don't

try to second guess or predict that the market will fall today and rise tomorrow.

Even seasoned investors cannot do that!

6.2 DON'T TRY TO GUESS THE MARKET'S FAVOURITES:

Your instincts might tell you that pharma or technology stocks are hot due to

certain policies or events, but remember millions of investors have already guessed

that and bought these stocks. The prices of these stocks would therefore be at a

higher level when you buy them. Instead focus on the long term and don't get

swayed by short-term events.

6.3 AIM FOR THE LONG HAUL:

Short-term investing is prone to higher risks. When investing in stocks, aim

to get good returns after a period of three to five years at the minimum. Also churn

your portfolio periodically and based on the progress that a company makes in a

quarter or in six months, decide whether to hold the stock or get out of it.

6.4 AVOID HOT TIPS: You may have overheard some news about a stock

or your friend may advise that a particular stock is all geared to move up. Avoid

such tips like the plague and your investments will remain safe.


39/94

39

6.5 BLUE-CHIPS ARE SAFE BETS:

Blue-chip companies are there because they have done well in the past and

have a high market capitalization. It is a likely guess that they will maintain their

track record and give you higher returns even in future. Therefore invest in

companies that have a good track record.

6.6 SLOW AND STEADY STREAM OF INVESTMENTS:

Set aside a certain portion of your earnings every month and invest that sum

in shares irrespective of the market conditions. This way, over a period of time you

can amass a substantial number of shares of the stocks in your portfolio.

6.7 THINK PORTFOLIO:

Don't put all your earnings in a single stock. Try to have a diverse portfolio

of stocks. This way even if one stock doesn't do well, you are still well protected.

Also invest across sectors, since any problem in one sector would affect all stocks

in the sector. As a thumb rule, if you have investments of up to Rs50,000 invest intwo to three stocks. For about Rs150,000 invest in three to five stocks, for around

Rs500,000 have five to seven stocks, and around ten stocks for higher amounts.

6.8 DONT INVEST ALL YOUR SAVINGS:

Always maintain a core set of reserves. You should never touch these

reserves for investing, so that even in the worst case you still have some money.

Typically these reserves should be your salary of about six months.

6.9 BE REALISTIC:

Analyze the reason why you are investing in shares, i.e. why you require the

money. For a better lifestyle? For your child's future education? For retirement


40/94

40

planning? Once you have answered that, ask yourself how much appreciation do

you need to get that amount? Work towards this amount and you won't be

disappointed.

6.10 BE LEVEL-HEADED:

Invest wisely, don't get swayed by rumors and allow religare to be your

guide at all times. Investment success won't happen overnight, so avoid

overreacting to short term market swings.


41/94

41


42/94

42

ONLINE TRADING

7.1 PROCEDURE:

Just like offline trading, online trading also involves three main

intermediaries and one ancillary institution.

A broker,

An exchange,

Your bankers, and

Your depository participant.

In this form of trading, your broker provides you an Internet broking account

which allows you to buy and sell shares at your convenience. To put it simply, the

broker is providing an interface on the computer that acts like a broker.

So you no longer have to call your broker to place a trade. Just go online to

your account, select the shares you want to buy or sell and execute the trade! It's as

simple as that.

During this trade, your bankers provide the feature of transferring money

from or to your bank account. The brokers then collect this trade information in

real time using software at their end and forward it to the exchange.

The exchange executes the trade and informs the broker. The broker in turn

informs you and also ensures that your depository account gets updated; and in


43/94

43

case of selling shares it places the value of shares you sold in your account. You

can transfer this amount back to your bank or use it for buying shares.

7.2 STEPS FOR TRADING ONLINE:

There are three basic steps in trading online:

STEP I: Go to your broker and open an online account. During this stage you

also need to take a depository account.

STEP II: Ensure that you have a bank account with a bank that facilitates online

transactions (i.e. allows for net banking). Most leading banks such as HDFC Bank

and Citibank allow this.

STEP III: Once you open an account, you get a username and password for

checking your account details as well as another password for carrying out your

actual transactions. This ensures a double layer of security. Using these details you

go to your broker's website, log on to your account and start trading.

7.3 BENEFITS OF TRADING ONLINE?

Online trading is quite convenient for the following reasons:

Freedom from paperworkYour online trading account is integrated with your bank, your depository

and digital contracts. It thus eliminates all paperwork.

Instant credit and transferOnline trading gives you instant credit money transfer to and from your bank

account, enabling you to trade surplus credit without delay.


44/94

44

Trade from anywhereA major benefit of online trading is the facility of trading from anywhere.

Even when you are in a new place, just connect to the Internet, log on to your

account on religaresecurities.com and start trading.

Real-time portfolio trackingOnline trading provides auto update of trades executed by you and gives you

real-time information on your investments and the current value of your portfolio.

Religare provides portfolio tracking service to its clients absolutely free of cost.

After-hour ordersYou can place orders even when the market is closed. The order gets queued

up and gets executed the next time the markets open.

Get live quotesOnline trading provides you live, minute-by-minute streaming quotes and using

the software you can create appropriate filters to watch the movement of the stocks

that you are interested in.

Host of features a click awayPlace limit orders, check your portfolio and calculate your earnings, check

your depository account, transfer money from your bank to the broking account

and vice versa, at just a click of your mouse.


45/94

45

Five

Golden Rules For

I nvesting

I n

Shares


46/94

46

FIVE GOLDEN RULES FOR

INVESTING IN SHARES

RULE 1: THINK PORTFOLIO:

While investing in shares one should not just invest in just one single stock. Always look at buying more than one company and build a portfolio.

RULE 2: DIVERSIFY YOUR PORTFOLIO:

All stocks in your portfolio should not belong to just one or two sectors. The portfolio approach calls for diversification amongst business like

software, pharma, steel, cement, etc.

Why is this important?Lets assume that you have 10 stocks in your portfolio and all of them belong to

the steel industry. It is not a balanced portfolio because:

The factors that affect the steel industry will take their toll on each of steelcompanies.

Hence the portfolio is as risky as one with just one steel company. It may fail to give balanced returns because there is no diversification across

various businesses.


47/94

47

RULE 3: DONT SPREAD YOUR NET TOO WIDE:

Ideally a portfolio should not have more than 15 or 20 stocks. As the number of stock keeps increasing, the portfolio becomes

unmanageable.

Your total returns may start reducing.

RULE 4: UNDERSTAND YOUR RISK PROFILE:

Portfolio creation is all about maximizing returns, given a risk profile and atime horizon.

Your risk profile is a function of: Your age Ability to withstand losses Investment horizon (Time) Existing cash flows (income - expense) Experience and expectations from the market

RULE 5: SELECT STOCKS TO SUIT YOUR RISK - REWARD

EXPECTATIONS:

Invest in stocks based on your risk profileNever get into a herd mentality


48/94

48

SERVICES


49/94

49

SERVICES

9.1 PORTFOLIO MANAGEMENT SYSTEM:

Can you analyze the prices of 1,500 shares every morning? Can you afford

to gamble only on the recommendations from your friends and the information

overload from magazines and financial dailies?

And, of course, more importantly, if you happen to be a High Net worth

Individual, do you have the time to judge which advice is reliable, authentic and

has the least chance of failure?

With the Religare Team Managing Your Portfolio, you can be assured that

your investments are in safe hands! We follow a multi-disciplined approach

incorporating quantitative analysis, fundamental analysis and technical analysis.

This multi-pronged approach enables us to provide risk-controlled returns for you.

Right from choosing the combination of stocks most suitable for you based

on your risk appetite to monitoring their movements and discussing them with you

at special events.

9.2 COMMODITIES TRADING:

The process of economic liberalization in India began in 1991.

As part of this process, several capital market reforms were carried out by thecapital market regulator Securities and Exchange Board of India. One such

measure was to allow trading in equities-based derivatives on stock exchanges in

2000. This step proved to be a shot in the arm of the capital market and volumes

soared within three years. The success of the capital market reforms motivated the


50/94

50

government and the Forward Market Commission (the commodities market

regulator) to kick off similar reforms in the commodities market. Thus almost all

the commodities were allowed to be traded in the futures market from April 2003.

To make trading in commodity futures more transparent and successful, multi-

commodity exchanges at national level were also conceived and these next

generation exchanges were allowed to start futures trading in commodities on-line.

Commodities exchanges have seen a surge in commodity futures volumes in

the last few months. This rise in volumes has been led by bullion (gold and silver)

trading. Today a whole lot of commodities are available for trading in futures and

the list is getting bigger by the day. No wonder then that the commodity futures

market is being viewed as a significant business segment by manybusinessmen,

investors, institutions, brokers, banks et al.

Of course there are still millions of Indians who are not aware that

commodities other than gold and silver can also be traded in on commodity

exchanges. Fewer still know that be traded on-line!

Hence to educate Indian investors in the benefits of trading in commodities

religare has decided to bring out a compilation of questions on the subject along

with their answers. Demystifying Commodities seeks to cover every aspect of

commodity trading and has been written in a language that is simple and lucid, a

characteristic of Religare.

I am certain that Demystifying Commodities will go a long way in

generating awareness about commodity trading among Indian investors. The

various money-making trading strategies for the commodities market discussed in

Demystifying Commodities will also be of immense help to those billion investors

who are already trading in commodities.


51/94

51

How to Open an Commodity Account?

Need Rs 500 cheque in the name of "Religare Commodity Ltd"to open an account

Latest bank act statement Xerox Identity proof Residential proof Trading in commodity exchange require 5-10 percentage margin money.

How do I trade in commodities?

You can place your orders through our dealers across all our

branch/franchisee Toll free number 39708090 during the market hours between

10 am to 11.30 pm in summer & 10 am to 11.55 pm in winter. If you require

terminal for mcx/ncdex or both need Rs. 1 lac as margin money, there is

terminal fees asking by exchange i.e. Rs. 1000 each exchange/month.

9.3 SHARE SHOPS:

Get everything you need at a Religare outlet!All you have to do is walk into any of

our 588 share shops across 213 cities in India to get a host of trading related

services - our friendly customer service account related queries you may have.

A Religare outlet offers the following services:

Online BSE and NSE executions (through BOLT and NEAT terminals) Free access to investment advice from religare's research team Religare Value Line (a fortnightly publication with reviews of

recommendations, stocks to watch out for etc


52/94

52

Daily research reports and market review (High Noon, Eagle Eye) Pre-market Report (Morning Cuppa) Daily trading calls based on technical analysis Cool trading products (Daring Derivatives, Trading Ring and Market

Strategy)

Personalized advice Live market information Depository services: Demat and Remat transactions Derivatives trading (Futures and Options) Internet-based online trading: SpeedTrade, SpeedTradePlus


53/94

53

Religare

Online

Trading

I nter faces


54/94

54

RELIGARE ONLINE TRADING INTERFACES

The customer can choose the online trading interface that meets his

requirement based on his trading habits and preferences.

10.1 CLASSIC account:

Investing Online is so much easier! This account enables you to buy and sell

shares through our website.

FEATURES OF CLASSIC ACCOUNT:

Facility to integrate choice of 7 Banks / DP / Trading Account

Instant credit for shares sold from DP Automatic pick-up of shares from linked DP for Pay-in Automatic deposit of shares into linked DP after pay-out Times leverage on Margin Trades Margin Trading available for entire market session Slab wise brokerage structure for delivery and margin trades, shortly Free Calls for order placement on Toll-Free Trusted, professional advice of Tele-brokers Facility to enter After Market orders online & via phone Daily Research newsletter (Investor Eye) via e-mail Access to new IPO without any paperwork Advanced portfolio monitoring Tools Integrated DP account with trading account Choice of linking 4 banks to trading a/c for online payments Cash and Derivatives trading in a single account E-mail confirmations for all transactions Choice of electronic / physical contracts


55/94

55

SYSTEM REQUIREMENTS:

You will need access to a computer which has at least the following configuration:

Pentium 3 PC Minimum 128 MB RAM Windows 2000/XP Internet connection Internet Explorer 6.0

10.2 SPEEDTRADE :

The speedtrade is meant for customers who trade in Equities. The ideal tool

for active traders and jobbers who transact frequently during the day's trading

session, Speedtrade enables you to capitalize on intra-day price movements.

Speedtrade is an Internet-based executable application that provides

everything a trader needs on ONE screen.

FEATURES OF SPEED TRADE:

It contains all the features of classic account. In addition to all those features

it contains the following features:

Real-time streaming quotes using 2 Market Watches Trade Execution in 2-3 seconds Instant order / trade confirmations in the same window Hot keys similar to a Brokers Terminal Multiple Tic-by-Tic Intra-day charts with multiple indicators Availability of 2 ISP & 6 Servers ensuring maximum uptime Customized alerts based on Multiple Parameters Cancel All / Square Off All Facility


56/94

56

Window for Top Gainers, Top Losers, Most Active updated Live.SYSTEM REQUIREMENTS:

Pentium 3 PC Minimum 128 MB RAM Windows 2000/XP Internet connection Dial-up Modem/ Cable Modem JAVA enabled in IE Internet Explorer 6.0

10.3 DIAL-N-TRADEToll Free:Trade in Equity by using your phone! Free with your Religare Classic

Account, the Dial-n-Trade service enables you to place orders for buying and

selling shares through your telephone.

All you have to do is dial any one of our two dedicated numbers (1-800-11-

44-88), enter your TPIN number (which is provided at the time of opening your

account) and on authentication you'll be directed to a telebroker who will buy and

sell shares for you.

The DNT is a value added services meant for all customers who want to

transact but are not online

FEATURES OF DIAL-N-TRADE:

Dedicated Toll-Free number for Order placements Automatic fund transfer with phone banking* Simple and secure IVR based system for authentication No wait time. On entry of Phone Id & TPIN, the call is transferred Trusted, professional advice of Tel-brokers who offer undiluted
http://localhost/var/www/apps/conversion/tmp/scratch_7/D:educationTAJSHAREKHANSharekhan.comsskisharekhan.comClassicAccountdefault.htmhttp://localhost/var/www/apps/conversion/tmp/scratch_7/D:educationTAJSHAREKHANSharekhan.comsskisharekhan.comClassicAccountdefault.htmhttp://localhost/var/www/apps/conversion/tmp/scratch_7/D:educationTAJSHAREKHANSharekhan.comsskisharekhan.comClassicAccountdefault.htmhttp://localhost/var/www/apps/conversion/tmp/scratch_7/D:educationTAJSHAREKHANSharekhan.comsskisharekhan.comClassicAccountdefault.htm


57/94

57

Religare Research Inputs

After-hours order placement facility ** Transfer of money using phone banking is available with bank Between 9 a.m to 9:55 a.m and 3:30 p.m to 6 p.m

10.4 DOCUMENTS REQUIRED:

3 Passport size Photographs 1 Cheque of Rs.750 in Favour of Religare commodities limited

Photo ID Proof Residence Proof

Passport Pan Card Driving Licence Voter's ID MAPIN UIN Card

Passport (valid) Voter's ID Driving License (valid) Bank Statement Telephone Bill Electricity Bill Ration Card Flat Maintenance Bill Insurance Policy Leave-License/Purchase Agreement


58/94

58

RESEARCH STUDIES

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the

needed data to solve the problem.

TYPES OF RESEARCH DESIGN

The arrangement of conditions suitable for collection and analysis of data

varies depending upon the type of research study.

1.Exploratory research design.2.Descriptive research design.3.Conclusive research design.

DESCRIPTIVE RESEARCH:

Descriptive study is a fact- finding investigation with adequate

interpretation. It is the simplest type of research. It is more specific than an

explanatory study, as it has focus on particular aspect of the problem studied. It is

designed to get her descriptive information and provide information for

formulating more sophisticated studies. Data are collected by using one or more

appropriate method, observation, interviewing and mail questionnaire.


59/94


60/94

60

TARGET GROUP/ POPULATION

As this research is based on Relationship Marketing my Target group is my

Clients who are using the Services of Religare Securities in Dealing with Capital

Market.

Area of Study:-

kanpur city


61/94

61


62/94

62

In which professions are you engaged in?

RESPONDENTS PERCENTAGE

Business 25 50%

Service 10 20%

Professional 10 20%

Entrepreneur 5 10%

TOTAL 50

0

5

10

15

20

25

30

Business Service Professional Enterprenure


63/94

63

Interpretation:

50% of the respondents are Business Man 20% of the respondents are Service Man 20% of the respondents are Professionals 10% of the respondents are Entrepreneur

Inferences:

From the above survey most of the respondents are found to be business man by

profession.


64/94

64

Do you trade in Stock Market?RESPONDENTS PERCENTAGE

YES 39 78%

NO 5 10%

EARLEAR, BUT

NOW STOPPED

6 12%

Total 50

Interpretations:

78% of the respondents trade in stock 10% of the respondents do not trade in stock 12% of the respondents trade earlier

Inferences:

From the above survey most of the respondents trade in stock market .

39

5 6

0

5

10

15

20

25

30

35

40

Yes No Earlier But Now

Stopped


65/94

65

How much is your income or your Credibility?RESPONDENTS PERCENTAGE

Between 1- 2 lac 10 20 %

Between 2-3 lac 20 40 %

Between 3-4 lac 15 30 %

Above 4 lac 5 10 %

TOTAL 50

Interpretation:

40% of the respondents are between 2- 3 lac 30% of the respondents are between 3-4 lacs

20%

40%

30%

10%

1 - 2 lac

2- 3 lac

3 - 4 lac

Above 4 lac


66/94

66

20% of the respondents are between 1-2 lacs 10% of the respondents are between above 4 lac

Inferences:

From the above survey most of the respondents falls under 2- 3 lac bracket.


67/94

67

How much you trade in stock MarketRESPONDENTS PERCENTAGE

10,000 - 50,000 23 46%

50,000 - 1,00,000 15 30%

1,00,000 - 1,50,000 8 16%

Above 1,50,000 4 8%

TOTAL 50

23

15

8

4

0

5

10

15

20

25

10,000 - 50,000 50,000 - 1,00,000 1,00,000 - 1,50,000 Above 1,50,000


68/94

68

Interpretation:

46% respondents invest 10,000-50,000 30% respondents invest 50,000- 1, 00,000 16% respondents invest 1, 00,000- 1, 50,000 8% respondents invest above 1, 50,000

Inferences:

From the above survey most of the respondents invest 10,000- 50,000 in stock

market.


69/94

69

How much Return you Get after Investing?

0

5

10

15

20

25

30

> 5 % 5 - 10 % 10 - 15 % 15 - 20 %

RESPONDENTS PERCENTSGE

Below 5% 10 20%

5- 10 % 27 54%

10- 15 % 9 18%

15- 20 % 4 8%

TOTAL 50


70/94

70

Interpretation:

20% of the respondents get below 5% 54% of the respondents get 5- 10 % 18% of the respondents get 10 - 15 % 8% of the respondents get 15-20 %

Inferences:

From the above survey most of the respondents get 5- 10 % returns on their

investments.


71/94

71

What according to you is your risk level?

RESPONDENTS PRECENTSGES

Highly Risky 5 10%

Average 27 54%

Moderate 9 18%

Risk free 9 18%

TOTAL 50

5

27

9

9

Highly Risky

Average

Moderate

Risk free


72/94

72

Interpretation:

10% of the respondents are highly risky 54% of the respondents are average 18% of the respondents are Moderate 18% of the respondents are risk free

Inferences:

From the above survey most of the respondents are average risk takers.


73/94

73

Which mode of trading do you prefer?

0

5

10

15

20

25

30

35

Online Offline

RESPONDENTS PERCENTAGE

Online 19 38%

Offline 31 62%

TOTAL 50 100%


74/94

74

Interpretation:

38% of the respondents prefer online 62% of the respondents prefer offline

Inferences:

From the above survey most of the respondents prefer offline trading as they are

new to stock market.


75/94

75

What has been your investment experience in stocks?RESPONDENTS PERCENTAGES

Excellent 5 10%

Good 12 24%

Average 20 40%

Bad 13 26%

TOTAL 50 100%

0

2

4

6

8

10

12

14

16

18

20

Excelent Good Average Bad


76/94

76

Interpretation:

10% of the respondents feel excellent 24% of the respondents feel good 40% of the respondents feel average 26% of the respondents feel bad

Inferences:

From the above survey 40% of the respondents have an average investment

experience in stock market.


77/94

77

What extra services do you expect from your broker?RESPONDENTS PERCENTAGES

Depository 2 4%

Marginal

Financing

4 8%

P.M.S 7 14%

Trading 9 18%

Research 9 18%

All the above 19 38%

TOTAL 50 100%

2

4

7

9

9

19

0 5 10 15 20

Depository

Marginal Financing

P.M.F

Trading

Research

All the Above


78/94

78

Interpretation:

4% respondents prefer Depository service 8% respondents prefer Marginal Financing 14% respondents prefer P.M.S 18% respondents prefer Trading 18% respondents prefer research 38% respondents prefer all the above services

Inferences:

From the above survey most of the respondents prefer all services that any broker

must provide to its clients.


79/94

79

Are you satisfied with the service of your Broker House?RESPONDENTS PERCENTAGES

Yes 27 54%

No 5 10%

Cant Say 18 36%

TOTAL 50 100%

27

5

18

0

5

10

15

20

25

30

Yes No Can't Say


80/94

80

Interpretation:

54% of the respondents say yes 10% of the respondents say no 36% of the respondents say cant say

Inferences: From the above survey 54% of the respondents are satisfied the

services of their broker house.


81/94

81

Rate the service according to your Criteria?RESPONDENTS PERCENTAGES

Excellent 5 10%

Very good 15 30%

Good 21 42%

Poor 9 18%

TOTAL 50 100%

0

5

10

15

20

25

Excillent Very Good Good Poor


82/94

82

Interpretation:

10% of the respondents say excellent

30% of the respondents say very Good

42% of the respondents say Good

18% of the respondents say Poor

Inferences:

From the above survey most of the respondents rate good to the services provide

by their broker house.


83/94

83

Have you heard of Religare Securities?RESPONDENTS PERCENTAGES

Yes 44 88%

No 6 12%

TOTAL 50 100%

Yes, 44

No, 6

Yes

No


84/94

84

Interpretation:

88% of the respondents know Religare Securities 12% of the respondents dont know about ReligareSecurities

Inferences:

From the above survey most of the respondents know Religare securities


85/94

85

FINDINGS

In this survey most of the questionnaires are filled from brokerage houses

where clients sit on the terminal & trade in the stocks. As the data collected shows

that people who mostly invest in the market are businessmen & service class

person who dont have enough time to keep continuous watch on the market

fluctuation so they need regular assistance from their relationship manager who is

assigned to them so every company is suggested to enforce their relationship

managers to stay in contact with their clients. There are some No answer in this

survey because many time clients may be with his friend who dont trade in the

market & that friend might be interested or not do the relationship manager in that

brokerage firm must take some extra care for them. Here difference is because of

the presence of the friend of client in the brokerage house who doesnt want to

trade in the stock market because he might be afraid of losses or due to lack of

resources. But if that friend has lack of time than the relationship manager has to

give a proper assistance & dedication to that person so that friend can make

himself to trade in the stocks. As technology increases most of the people have less

time to spend on the other activities than their core business so most of the clients

prefer online trading so they can put their bids whenever they want as 24*7. In the

case of online trading clients are not need to be provided any kind of assistance

from their relationship manager but if the dedicated relationship manager provide

them a good assistance can put that relationship manager & that organization apart

from their competitors. But even after the presence of internet some people like to

trade through offline mode reasons might be lack of knowledge or cost sensitive as

offline product is used to being at lower cost so here in offline that dedicated

relationship manager has to be in contact with his client. Most of the people look

for moderate return because of presence of risk well as the age group changes the


86/94

86

risk-taking factor as age increase people started investing in bonds where a fixed

return is possible. As the data shows most of the people were satisfied with their

brokers because they are giving them profits on their investment & they were ready

to pay more to their brokers if they get some extra services.


87/94

87

RECOMMENDATION

The Recommendation which is to be suggested is as follow:-

Religare securities should enhance the customer care department wherequeries can be timely solved.

Religare securities should provide more security to the existing andprospective clients

Religare securities should build its BRAND Image more strong byincreasing visibility

There should be more banners posters pamphlets distribution in the marketto increase the awareness level among the people

It should provide regular and update market information Special attention need to be given to the delivery of monthly & fortnightly

report to the clients

Timely release of Brokerage & Fast redressed of clients grievance is a majorplus if Religare is looking to develop long term relationship with its clients

Services should be more efficiently delivered to the prospective clients inorder to develop a long term relationship with the clients.


88/94

88

CONCLUSION

In spite of the bleak and grim outlook the future of capital market it is growing

at a very high pace. Taking this things into consideration there are lots of

opportunity for the Broker House which already exist and which are due to enter in

the Indian market. These are little awareness about Equity and Mutual fundsin

India people have accepted it as one of the major investment avenue. As people

have entered in this particular investment avenue they have lost there money

because of movement in the market which is below the par value and this has

shaken the faith of investor in this particular avenue. Another reason for low

investment in this sector is due to country most of the companies not performing

well and also due to the scams that are taking place frequently Once people know

about the benefit offered by it, Capital market will become one the sought after

investment avenue. As far as other product marketed by Religare is concerned

they have a ready market. The only thing which is needed to focus on is that they

should have a strong marketing strategy so that prompt service and availability of

forms is made available to the investors at a short notice and if it keeps the

traditional base for marketing in India which is a price sensitive. We can say that

Religare has a great future ahead.

Religare has emerged a very strong player in the field of distribution of fi nancial

product within a short period of one year in Northern India and is giving stiff

competition to the entire player in the Jaipur & other parts. If the progress of

Religaregoes in the same way then I can say that Religare will going to emerge as


89/94

89

a major player in the Capital market. They have much more potential to expand

there business and market in India.


90/94

90

ANNEXURE


91/94

91

QUESTIONNARE

1. In which professions are you engaged in?Business Service

Professional Entrepreneur

2. Do you trade in stock market?Yes No Earlier, But now Stopped

3. How much is your income or your Credibility?Between 1 lac to 2 Lac Between 2 Lac to 3 Lac

Between 3 lac to 4lac Above 4 lac

4. How much you trade in stock Market?10,00050,000 50,0001, 00,000

1,00,0001, 50,000 Above 1, 50,000

5. How much Return you Get after Investing?

> 5 % 510 %

10-15% 1520 %


92/94

92

6. What according to you is your risk level?

Highly Risky Average

Moderate Risk free

7. Which mode of trading do you prefer?Online trading Offline trading

8. What has been your investment experience in stocks?Excellent Good

Average Bad

9. What extra services do you expect from your broker?a. Depository servicesb. Margin financingc. Portfolio management servicesd. Tradinge.

Research and Technical services

f. All of the above


93/94

93

10.Are you satisfied with the service of your Broker House?Yes No Cant Say

11. Rate the service according to your Criteria?

Excellent Very Good

Good Poor

12.Have you heard of Religare Securities?Yes No


94/94

BIBLIOGRAPHY

Books & Journal:

Philip Kotler & Kevin Keller, Marketing Management ; , Prentice-HallIndia, 2006 12

thedition

Ramaswamy, V.S., & Namakumari, S., Marketing Management:Planning, Implementation & Control, Macmillan India, DaryaGanj,

2003.

Marketing Research, Dacid j. luck Ronald S.Rubin Prentice Hall ofIndia Pvt. Ltd

Websites:- http://www.religaresecurities.com http://www.nseindia.com http://www.indiainfoline.com
http://www.religaresecurities.com/http://www.religaresecurities.com/http://www.nseindia.com/http://www.nseindia.com/http://www.nseindia.com/http://www.religaresecurities.com/

Documents

Summer Internship Project Report on - Copy