AHMEDABAD
0n
( 2010-2012}
SUBMITTED BY:
TUSHAR PATEL
MBA
2009 -2011
SUBMITTED TO:
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ACKNOWLEDGEMENT
First and fore most I would like to thank my company guide Mr. chintan shah ( sales
manager) for his constant encouragement, guidance and advice at every stage of my
training. This project would not have been successfully completed without his great
support.
I am very much thankful to my college for their excellent guidance, support and
appreciation and he also provided me with this great opportunity to work in such a
reputed organization.
I express my sincere thanks to Prof. Kalika Bansal, Amity Global Business School,
Ahmadabad who helped me in understanding the project and the implementation of the
same. Her suggestions really helped me think on a broad perspective and give me
motivation to do my best. I would also like to thank Amity, Ahmadabad for helping and
supporting me for my Summer Internship Program at RELIGARE SECURITIES
LIMITED.
Date:
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PREFACE
Indian Stock market is considered to be the one of the fastest growing as well
as most volatile market in the world. Sensex and Nifty has touched all time high and
created history. There are many factors which contributes such a drastic change in the
stock market. We can divide these factors in mainly three categories like economic
factors (These factors effect economy as a whole), industry specific factors (Such factors
related to the any industry specific event that can affect industry as a whole) and
company specific factors (These factors includes any such event or news about the
company which could affect its share price).
During recent times many corporate actions has taken place which have
substantially affect the individual share price of the company. The actions taken by the
company is known as event. Such event includes Dividend Distribution, Bonus Issue,
Right Issue, Mergers & Acquisitions, and Stock Split etc. Event studies examine the
behavior of firms‟ stock prices around corporate events. A vast literature written over the
past several decades has become an important part of financial economics. Prior to that
time, the usefulness of event studies arises from the fact that the magnitude of abnormal
performance at the time of an event provides a measure of the (unanticipated) impact of
this type of event on the wealth of the firms‟ claimholders. Thus, event study provides
evidence relevant for understanding corporate policy decisions. In this research report we
try to study one of such corporate event and fry to find out its impact on that company
and investors.
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CERTIFICATE
This is to certify that Mr. TUSHAR PATEL, M.B.A student of Amity Global Business School,
Ahmedabad has done research project on the topic “MARKETING OF FINANCIAL
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EXECUTIVE SUMMARY
This project has been a great learning experience for me; at the same time it gave me
enough scope to implement our analytical ability. This project as a whole can be divided
into two parts:
The first part gives an insight about the importance of Demat account which is necessary
for dealing in stock market. This part shows that the charges (Brokerage plans) for
trading in the Religare securities limited. There are various schemes in this company
according to the client‟s portfolio. This part is also include the comparative study of
charges in other organization with respect to this company.
However, the second part gives an insight about the importance of Fundamental analysis
in the broking industry. It is also based on whatever I learned at collage and also I have
gathered all information through internet. In narrow sense the fundamental analysis is
more concern with such specific factors such as intrinsic value of the firm, etc.
fundamental analysis is also a part of equity analysis which is generally done by the fund
managers or institutional & professional advisors before they invest or gives the advice
for investing in such stocks.
Lastly the third part gives an insight about the importance of Technical analysis in the
broking industry. It is purely based on whatever I learned at collage and also I have
gathered all information through internet. In narrow sense these attitudes are related to
the role under condition with such specific factors such as trend, or price & chart
patterns, etc. Technical analysis is a part of equity analysis which is generally done by the
fund managers or institutional & professional advisors before they invest or gives the
advice for investing in such stocks
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CONTENT
NO. TITLE Pg. No.
1. ACKNOWLEDGEMENT 2
2. PREFACE 3
3. BODY REPORT
Executive summery
Introduction of the company 7
Research design 8
Objective of the study 8
Data collection
4. GROUP COMPANIES 13
features 18
Key events and milestones 22
Vision and mission 23
Types of accounts 28
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Religare is a global financial services group with a presence across Asia, Africa, Middle
East, Europe and the Americas. Religare is promoted by the promoters of Ranbaxy
pharmaceuticals Limited. In India, Religare‟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 over 10,000 employees across multiple geographies, Religare serves over a million
clients, including corporate and institutions, high net worth families and individuals, and
retail investors. Religare operate from six regional offices and 25 sub-regional offices and
have a presence in 330 cities and towns controlling 979 locations which are managed
either directly by Religare or by our Business Associates all over India, the company
have a representative office in London. While the majority of Religare offices provide the
full complement of its services yet it has dedicated offices for investment banking,
institutional brokerage, portfolio management services and priority client services.
As on date the Company is empanelled with UTI, IDBI, IFCI, SBI, BOI-MF, Punjab
National Bank, PNB-MF, Oriental Insurance, GIC, UTI-Offshore, ICICI Can bank MF,
Punjab & Sind Bank, Pioneer ITI, SUN F&C, IDBI Principal, Prudential ICICI, ING
Baring and J M Mutual Fund.
RELIGARE was founded with the vision of providing integrated financial care driven by
the relationship of trust. The bouquet of services offered by RELIGARE includes
Broking (Stocks and Commodities), Depository Participant Service, Advisory on Mutual
Fund Investments and Portfolio Management Services.
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RESEARCH DESIGN
TITLE OF THE STUDY
DATA COLLECTION
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Primary data
Secondary data
We had also made phone calls to the client to get accurate information for their
investment.
Another method to get the information was a direct approach in which we approached the
clients and got a direct response from them.
Discussions with the concerned by personal interview
LIMITATIONS
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Life Insurance
Religare Commodities Limited
General Insurance
Commodity Broking Reinsurance
In house Real Estate Management Company Private Equity and Investment Manager
Corporate Broking
Institutional Broking
Derivatives Sales
Corporate Finance
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Name
Religare is a Latin word that translates as 'to bind together'. This name has been chosen to
reflect the integrated nature of the financial services the company offers.
Symbol
The Religare name is paired with the symbol of a four-leaf clover. Traditionally, it is
considered good fortune to find a four-leaf clover as there is only one four-leaf clover for
every 10,000 three-leaf clovers found.
For us, each leaf of the clover has a special meaning. It is a symbol of Hope. Trust. Care.
Good Fortune.
For us, each leaf of the clover has a special meaning. It is a symbol of Hope. Trust.
Care. Good Fortune. For the world, it is the symbol of Religare.
The first leaf of the clover represents Hope. The aspirations to succeed. The
dream of becoming. Of new possibilities. It is the beginning of every step and
the foundation on which a person reaches for the stars.
The second leaf of the clover represents Trust. The ability to place one‟s own
faith in another. To have a relationship as partners in a team. To accomplish a
given goal with the balance that brings satisfaction to all, not in the binding, but
in the bond that is built.
The third leaf of the clover represents Care. The secret ingredient that is the
cement in every relationship. The truth of feeling that underlines sincerity and
the triumph of diligence in every aspect. From it springs true warmth of service
and the ability to adapt to evolving environments with consideration to all.
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The fourth and final leaf of the clover represents Good Fortune. Signifying that
rare ability to meld opportunity and planning with circumstance to generate
those often looked for remunerative moments of success.
Hope. Trust. Care. Good Fortune. All elements perfectly combine in the
emblematic and rare, four-leaf clover to visually symbolize the values that bind
together and form the core of the Religare vision.
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INTRODUCTION
Religare Finvest
Ltd Religare Wealth
Religare Management
Securities Ltd Services Ltd
Religare Capital
Religare Markets Ltd
Commodities Ltd RELIGARE
ENTERPRISE
LTD. Religare Finance
Religare Ltd
Insurance Broking
Ltd
GROUP COMPANIES
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RSL is one of the leading broking houses of India and are dealing into Equity
Broking, Depository Services, Portfolio Management Services, Internet Trading,
Institutional Equity Brokerage & Research, Investment Banking, Merchant Banking and
Corporate Finance.
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.
RSL serves a platform to all segments of investors to avail the opportunities offered by
investing in Indian equities either on their own or through managed funds in Portfolio
Management
Religare 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 realization, Religare Commodities is coming up with its branches at mandi
locations. It is a flagship effort from our team which would be helpful in facilitating trade
and speculating price of commodities in future.
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3. Religare Finvest
Financial services arena in India. In a fast paced, constantly changing dynamic business
environment, RFL has delivered the most competitive products and services.
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 .
RFL 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
alias, bills discounting, inter corporate deposit, working capital loan syndication,
placement of private equity and other structured products.
Religare has been taking care of financial services for long but there was a missing link.
Financial planning is incomplete without protective measure i.e. structured products to
take care of event of things that may go wrong
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individuals with a complete suite of insurance solutions, both life and general to mitigate
risks to life and assets through our existing network side.
For corporate clients, we will be offering value based customized solutions to cover all
risks, which their business is exposed to. Our clients will be supported by an operations
team equipped with the best of technology support
Religare Insurance Broking aims to provide neutral, transparent and professional risk
transfer advice to become the first choice of India
1. Personal Assistance
3. Add-Ons
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Access to all your accounts through your Customer Relationship Number (CRN)
Access your ledger balances and account information over internet, branch and call
center
Even while you are waiting to make your next trade or online investment, your unutilized
cash does not lie idle with us. You earn interest on your unutilized cash margin.
Invest online in Equities, Commodities, Currency, IPO and Mutual Funds in a single
platform and maintain all your financial records at one place. Now, you can also file your
tax and book air tickets, make hotel reservations and buy attractive holiday packages, all
online. So get empowered, enrich your experience of investing online and open yourself
to a whole new world of possibilities for Religare Online will become Your World
Online, beyond investments!
Allowing you the freedom to trade without hassles throughout the day without having to
worry about your cash margin. You can get exposure (on cash segment) as high as 20
times for intraday trades.
FEATURES
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So earn reward points each time you trade in Equities, Commodities & Currency
Derivatives or invest in your favorite IPOs online with us through highly sophisticated
and customized trading platform R-ACE (Religare Advanced Client Engine)
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weeks time from the date of receipt & delivery will be made at the address registered
with us. You can also track your shipments by using „Previous Redemption‟ option.
Redemption partners
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Religare has been constantly innovating in terms of product and services and to
offer such incisive services to specific user segments it has also started the NRI, FII, HNI
and Corporate Servicing groups. These groups take all the portfolio investment decisions
depending upon a client‟s risk / return parameter.
Religare has a very credible Research and Analysis division, which not only
caters to the need of our Institutional clientele, but also gives their valuable inputs to
investment dealers.
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2000 RSL received membership of the Futures and Options segment of the NSE
RSL received registration as „Depository Participant‟ with NSDL
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Vision
To build Religare as a globally trusted brand in the financial services domain and present
it as the „Investment Gateway of India'.
Mission
Providing complete financial care driven by the core values of diligence and
transparency.
Brand Essence
Core brand essence is Diligence and Religare is driven by ethical and dynamic processes
for wealth creation.
Religare Securities
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ICICI Direct
Share Khan
India bulls
Motilal Oswal
HDFC
HSBC
Angel Trade
Reliance Money
Standard Chartered
IDBI Paisa Builder
Geojit
Networth
Kotak Securities
India infoline
India infoline
Others
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Religare is one of the heavyweight equity players in India with membership of National
Stock Exchange of India and Bombay Stock Exchange - both major exchanges of India.
We believe in innovative services that could cater a range of customers according to their
requirements.
c) Depository Services:
Religare is among the few major Depository Participants holding securities worth more
than Rs.6000 crore under its management. RSL provides depository services to investors
as a Depository Participant with NSDL and CDSL.
JOINT VENTURES
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Type of Account
Product of RSL
Religare offers its wide range of financial services though a sophisticated and customized
trading platform - R-ACE (Religare Advanced Client Engine). Below are 3 flavors of R-
ACE accounts available to the investors.
R-ACE Lite is the advanced trading platform for the investor of Religare. This trading
account provides the entire feature of R-ACE (Basic) account. In addition it also provides
real-time streaming stock quotes and alerts. This trading platform is also browser based
and no software installation is needed.
As the name indicates this account is for high volume traders. Along with the features
from above 2 accounts, this account also comes with Trading Terminal software which
needs to install on your computer. This terminal directly connects the investor to stock
market and having all industry standard Treading terminal features including technical
charting (intra-day and EOD), multiple watch list, advanced hot-key functions for faster
trading, derivative chains, futures & options calculator etc.
As in basic and advance account, trading is available online through internet and offline
though phone.
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Now due to modern business world and spread of the Information Technology most of
the investor suggests online trading for saving the time as well as accuracy of the
transaction. Religare provide such services to its clients through R-ACE Lite account. In
such type of account client have a separate login id and password for open a R-ACE Lite
software. In this software client can watch 20 different scripts as his wish and can trade
online. The clients can also make 6 groups of 20 scripts each.
Religare also provide a very huge platform for its big and loyal clients. R-ACE pro is a
same account as R-ACE Lite but only the difference in the R-ACE Pro is that a client
can add unlimited scripts as his wish.
Religare offers different brokerage plans for different kind of clients. Let us see one by
one plan as mentioned below.
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Brokerage:
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Charges for call N Trade/ advisory desk or any other Rs. 10 per lot
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INTRODUCTION
The vast geographical extent of India and huge population is aptly complemented
by the size of the market. The broadest classification of the Indian Market can be made in
terms of the commodity market and the bond market.
The commodity market in India comprises of all probable markets that we come across in
our daily lives. Such markets are social institutions that facilitate exchange of goods for
money. The cost of goods is estimated in terms of domestic currency. India commodity
market can be subdivided into the following two categories:
Wholesale Market
Retail Market
The traditional wholesale market in India dealt with whole sellers who bought goods
from the farmers and manufacturers and then sold them to the retailers after making a
profit in the process. It was the retailers who finally sold the goods to the consumers.
With the passage of time the importance of whole sellers began to fade out for the
following reasons:
The whole sellers in most situations, acted as mere parasites who did not add any value to
the product but raised its price which was eventually faced by the consumers.
The improvement in transport facilities made the retailers directly interact with the
producers and hence the need for whole sellers was not felt.
In recent years, the extent of the retail market (both organized and unorganized) has
evolved in leaps and bounds. In fact, the success stories of the commodity market of
India in recent years has mainly centered on the growth generated by the Retail Sector.
Almost every commodity under the sun both agricultural and industrial is now being
provided at well distributed retail outlets throughout the country.
Moreover, the retail outlets belong to both the organized as well as the unorganized
sector. The unorganized retail outlets of the yesteryears consist of small shop owners who
are price takers where consumers face a highly competitive price structure. On the other
hand the organized sector is owned by various business houses like Pantaloons,
Reliance, Tata and others. Such markets are usually selling a wide range of agricultural
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articles and manufactured, edible and inedible, perishable and durable. Modern
marketing strategies and other techniques of sales promotion enable such markets to
draw customers from every section of the society. However the growth of such markets
has still centered on the urban areas primarily due to infrastructural limitations.
Considering the present growth rate, the total valuation of the Indian Retail Market is
estimated to cross Rs. 10,000 billion by the year 2010. Demand for commodities is likely
to become four times by 2010 than what it presently is.
COMMODITY
A commodity may be defined as an article, a product or material that is bought
and sold. It can be classified as every kind of movable property, except Actionable
Claims, Money & Securities. Commodities actually offer immense potential to become a
separate asset class for market-savvy investors, arbitrageurs and speculators. Retail
investors, who claim to understand the equity markets, may find commodities an
unfathomable market. But commodities are easy to understand as far as
fundamentals of demand and supply are concerned. Retail investors should understand
the risks and advantages of trading in commodities futures before taking a leap.
Historically, pricing in commodities futures has been less volatile compared with equity
and bonds, thus providing an efficient portfolio diversification option.
In fact, the size of the commodities markets in India is also quite significant. Of the
country's GDP of Rs 13, 20,730 crore (Rs 13,207.3 billion), commodities related (and
dependent) industries constitute about 58 per cent.
Currently, the various commodities across the country clock an annual turnover of Rs 1,
40,000 crore (Rs 1,400 billion). With the introduction of futures trading, the size of the
commodities market grows many folds here on.
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BULLION Gold, Gold HNI, Gold M, i-gold, Silver, Silver HNI, Silver M
FIBER Cotton L Staple, Cotton M Staple, Cotton S Staple, Cotton Yarn, Kapas
ENERGY Brent Crude Oil, Crude Oil, Furnace Oil, Natural Gas, M. E. Sour
Crude Oil
SPICES Cardamom, Jeera, Pepper, Red Chilli
OIL & OIL SEEDS Castor Oil, Castor Seeds, Coconut Cake, Coconut Oil, Cotton Seed,
Crude Palm Oil, Groundnut Oil, Kapasia Khalli, Mustard Oil, Mustard
Seed (Jaipur), Mustard Seed (Sirsa), RBD Palmolein, Refined Soy Oil,
Refined Sunflower Oil, Rice Bran DOC, Rice Bran Refined Oil,
Sesame Seed, Soymeal, Soy Bean, Soy Seeds
CEREALS Maize
OTHERS Guargum, Guar Seed, Gurchaku, Mentha Oil, Potato (Agra), Potato
(Tarkeshwar), Sugar M-30, Sugar S-30
COMMODITY MARKET
Commodity markets are markets where raw or primary products are exchanged.
These raw commodities are traded on regulated commodities exchanges, in which they
are bought and sold in standardized contracts.
It covers physical product (food, metals and electricity) markets but not the ways that
services, including those of governments, nor investment, nor debt, can be seen as a
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commodity. Articles on reinsurance markets, stock markets, bond markets and currency
markets cover those concerns separately and in more depth. One focus of this article is
the relationship between simple commodity money and the more complex instruments
offered in the commodity markets.
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derivatives trading started in oilseeds in Bombay (1900), raw jute and jute goods in
Calcutta (1912), wheat in Hapur (1913) and in Bullion in Bombay (1920). However,
many feared that derivatives lead to unnecessary speculation in essential
commodities, and were harmful to the healthy functioning of the markets for the
underlying commodities, and also to the farmers.
The government has now allowed national commodity exchanges, similar to the
BSE & NSE, to come up and let them deal in commodity derivatives in an electronic
trading environment. These exchanges are expected to offer a nation-wide
anonymous, order driven; screen based trading system for trading. The Forward Markets
Commission (FMC) will regulate these exchanges. Consequently four commodity
exchanges have been approved to commence business in this regard. They are:
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4
NATIONAL MULTI COMMODITY EXCHANGE (NMCE),
AHMEDABAD
A commodity exchange refers to the market place where buying and selling of
commodities for future delivery takes place. The two important commodity exchanges in
India in which most of the commodity are traded, are Multi-Commodity Exchange of
India Limited (MCX), and National Multi-Commodity & Derivatives Exchange of India
Limited (NCDEX).
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Today MCX is offering spectacular growth opportunities and advantages to a large cross
section of the participants including producers / processors, traders, corporate, regional
trading centers, importers, exporters, cooperatives, industry associations, amongst others
MCX being nation-wide commodity exchange, offering multiple commodities for
trading with wide reach and penetration and robust infrastructure, is well placed to tap
this vast potential.
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India Limited (NSE). Punjab National Bank (PNB), CRISIL Limited (formerly the Credit
Rating Information Services of India Limited), Indian Farmers Fertilizer Cooperative
Limited (IFFCO) and Canara Bank by subscribing to the equity shares have joined the
initial promoters as shareholders of the Exchange. NCDEX is the only commodity
exchange in the country promoted by national level institutions. This unique parentage
enables it to offer a bouquet of benefits, which are currently in short supply in the
commodity markets. The institutional promoters of NCDEX are prominent players in
their respective fields and bring with them institutional building experience, trust,
nationwide reach, technology and risk management skills.
NCDEX is a public limited company incorporated on April 23, 2003 under the
Companies Act, 1956. It obtained its Certificate for Commencement of Business on May
9, 2003. It has commenced its operations on December 15, 2003.
NCDEX is a nation-level, technology driven de-metalized on-line commodity exchange
with an independent Board of Directors and professionals not having any vested interest
in commodity markets. It is committed to provide a world-class commodity exchange
platform for market participants to trade in a wide spectrum of commodity derivatives
driven by best global practices, professionalism and transparency.
NCDEX is regulated by Forward Market Commission in respect of futures trading in
commodities. Besides, NCDEX is subjected to various laws of the land like the
Companies Act, Stamp Act, Contracts Act, Forward Commission (Regulation) Act and
various other legislations, which impinge on its working. NCDEX is located in Mumbai
and offers facilities to its members in more than 390 centers throughout India. The reach
will gradually be expanded to more centers. NCDEX currently facilitates trading of
thirty six commodities - Cashew, Castor Seed, Chena, Chilly, Coffee, Cotton, Cotton
Seed Oilcake, Crude Palm Oil, Expeller Mustard Oil, Gold, Guar gum, Guar Seeds, Guar,
Jeera, Jute sacking bags, Mild Steel Ingot, Mulberry Green Cocoons, Pepper, Rapeseed -
Mustard Seed ,Raw Jute, RBD Palmolein, Refined Soy Oil, Rice, Rubber, Sesame Seeds,
Silk, Silver, Soy Bean, Sugar, Tar, Turmeric, Arad (Black Mated), Wheat, Yellow Peas,
Yellow Red Maize & Yellow Soybean Meal. At subsequent phases trading in more
commodities would be facilitated.
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Since 2002 when the first national level commodity derivatives exchange started, the
exchanges have conducted brisk business in commodities futures trading. In the last three
years, there has been a great revival of the commodities futures trading in India, both in
terms of the number of commodities allowed for futures trading as well as the value of
trading. While in year 2000, futures trading were allowed in only 8 commodities, the
number jumped to 80 commodities in June 2004. The value of trading in local currency
saw a quantum jump from about INR 350 billion in 2001-02 to INR 1.3 Trillion in
2003-04. The data in the below Table indicates that the value of commodity derivatives
in India could cross the US$ 1 Trillion mark in 2006. The market regulator Forward
Markets Commission (FMC) disseminates fortnightly trading data for each of the 3
national & 21 regional exchanges that have been set up in recent years to carry on the
futures trading in commodities in the country. Exhibit presents comparative trading data
for three fortnightly periods in March, June and September 2005 and brings up some
interesting facts.
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Online Trading is a service offered on the internet for purchase and sale of shares. In the
real world, one place orders on one‟s stockbroker either verbally (personally or
telephonically) or in a written form (fax). In Online Trading, one has to access
stockbroker's website through one‟ internet-enabled PC and place orders through the
broker's internet-based trading engine. These orders are directed towards the Stock
Exchange without any intervention.
There are 2 types of online trading service: discount brokers and full service online
broker. Discount online brokers allow you to trade via Internet at reduced rates. Some
provide quality research, other don't. Full service online brokerage is linked to existing
brokerages. These brokers allow their clients to place online orders with the Option of
talking/ chatting to brokers if advice is needed. Brokerage rates here are higher. The
various transactions involved in online trading can be shown from the point of view of
the
Client
Broker
Stock Exchange
The client places an order from his net by logging on to his broker‟s site. The broker
accepts and executes the order, and places it with the exchanges. The exchange accepts
the order after checking the share limit for the day. The brokers makes the payment either
directly via the client‟s bank account or pays through his own account and recovers it
later from the client. The exchange receives money and completes the settlement. The
client is intimated about the settlement either through the demat account or via E-mail.
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This mode of trading has benefited to a great extent to many users and nowadays more
and more people are attracted towards advantages are that it:
This technique offers the best price for the buying and selling transactions of the
investors, by ensuring proper matching of their orders. Also due to the high level of
transparency because of display of information relating to the specific stocks and
company profiles, the investors are able to get the best quote for the shares. This leads to
a reduction in the transaction cost for the investors.
Online trading integrates the bank, the brokerage and the demat accounts, which leads to
easy and paperless trading for the client.
The investor will be able to execute the entire trading transaction, right from logging on
to the broker's site, to the execution and settlement of his bank account, in a very short
period of time.
This method of trading reduces the settlement risk for the investor, as in this case no short
sale is possible. That is .the seller will not be able to sell the securities unless he has their
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actual possession. In the case of a demat account (required for an online transaction),
when a seller wants to sell the securities, his demat account is checked by the Depository
Participant before executing the sale transaction. This reduces the settlement risk for the
buyer, who is assured of the delivery of the securities.
1. Internet fraud:
In India, internet frauds are not a very uncommon thing we see this kind of frauds
happening in different ways.
As we all know that internet connectivity is to very less percentage of people and the
people who are about internet are reluctant to go for online trading.
One of the biggest drawbacks that a country like India faces is that the older and
experienced people are not that tech savvy so they trust offline trading only.
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As the name suggest offline share trading is that trading in which client come to the RM
or call their RM to trade on behalf of them. In a country like India maximum share
trading is done offline, as internet facility is not available everywhere in our country and
various disadvantages that are attached to online share trading, many investor prefer
offline share trading, which may be time consuming but a safer option.
Normally in all broking firms each client is appointed one RM (Relationship manager)
and one dealer, RM looks and performs the transaction on behalf on of their client,
suppose client will call up the RM, then RM will enter the order in his computer as stated
by the client. RM also provides him various other information like margin short and other
intra day report. in case of offline share trading, RM dealer can only advice their client
but he cant commit a benefit in doing a particular transaction.
All the telephone calls are recorded in case any problem may arise in future.
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Offline share trading is always considered to be a safer option than online share
trading, because of increasing internet fraud.
In a country like India where internet connectivity is not available everywhere trading
online is not possible for everyone, this is also the reason which enhances the growth of
offline trading.
offline share trading is considered to be better for new investor because in that case he
can take a help of RM, but I case of online share trading he himself must have a complete
knowledge about share market.
Brokerage charges are more in case of online share trading but less in offline share
trading, if we compare the brokerage charge of Religare itself brokerage charges for
offline are .3p and .30p on Intra day and Delivery respectively.
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2. RM may not provide the correct information as required by his client and may also
trade without permission of client in order to achieve his brokerage target.
There is an increasing demand for online trading due to consumer's growing preference
for internet as compared to offline share trading, but still maximum investor goes for
offline share trading, because it is being used from years, and they feel it to be a safer
option, other reason could be as not much people in India are tech savvy so the
percentage of people doing online share trading is less. The study done in this report
regarding this parameter clearly shows that although 91% of the people those who do
share trading are aware about online share trading but still they don‟t prefer it.
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NO. OF PERSON
16
14
12
10
8 NO. OF PERSON
6
4
2
0
< 100000 1 - 2 LACS 2 - 5 LACS > 5 LACS
INVESTMENT OBJECTIVE
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NO. OF PERSON
12
10
8
6
4
2
0 NO OF PERSON
Inference: majority person can invest the money of tax benefit .there are
11 respondents can invest money to give a tax benefit. And 9 respondents
invest money to earn a high income benefits .and rest of the the 7
respondents invest the money to getting a retirement protection.
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Sales
< 25%
25% - 50%
50% - 75%
> 75%
INFERENCES:
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NO OF PERSON
18
16
14
12
10
NO OF PERSON
8
6
4
2
0
LOW MEDIUM HIGH
INFERENCES :
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NO OF PERSON
OTHERS
CONSULTANTS
NO OF PERSON
FAMILY
FRIENDS
0 2 4 6 8 10 12 14
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BANK DEPOSITS
13%
SHARES
45%
INSURANCE
7%
MUTUAL FUNDS
DEBENTURES 15%
2%
COMMODITY
MARKET
5%
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NO. OF PERSON
16
14
12
10
8 NO OF PERSON
6
4
2
0
> 5% 5% - 10% 10% - 15% > 20%
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20
18
16
14
12
10
0
< 5 YEARS 6 - 10 YEARS 11-14YEARS >15 YEARS
INFERENCES :
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NO. OF MONTHS
> 12 MONTHS
4 - 12 MONTHS
< 4 MONTHS
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NO. OF PERSON
TRUST
13% LIQUIDITY
25%
HIGH RETURN
30%
LOW RISK
32%
INFERENCES :
When the person investing in his money by any services provider they most
prefer to higher return in here 30% respondents prefer the higher returns and
rest of the 32% are preferred the low risk taken ..and none of them 13% are
prefered the trust ..because of it‟s a very risky .by servicer provider or even
though the investors .
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NO. OF PERSON
20
18
16
14
12
10
8 NO. OF PERSON
6
4
2
0
REINVEST AT LEAST REINVEST 20 - 80 % OF RECEIVE AT LEAST
80 % EARNINGS EARNINGS 80% INVESTMENT
INFERENCES: The above charts describe the when the people earn the
money while investing and earned they invest the earning income reinvested
in the share market.
CONCLUSION
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Commodities market equity markets contrary to the beliefs of many people, has been in
existence in India through the ages and still has to go a long way ahead. Perceptions of
investors towards equity and commodity trading might change quite a lot with time.
The project reveals that equity and commodity market works in delivery base and
intraday base .and commodity works in future and derivative in which investors invest
money through the contracts given i.e 2 months contracts, 3 months contracts which
expires last Thursday of every month. The future market also provide the benefits for the
traders who want investment but they don‟t have enough money at particular time they
can invest with margin money in commodities and pay later to earn profits. The investors
can avail the benefits by opting different options, forward contracting, apply hedging to
minimize the loss if occur in the commodity market. It also provides the facility of the
hedging in the commodity market by which a customer can minimize the losses which he
is facing and ultimately save the principle amount for future investment.
Religare securities Ltd has the quality staff which helps in retaining the customers for
trading and the employees provide the advice about the most beneficial commodities and
equity provide the solution to the queries of the customers. Thus, it is referred that
employees is providing the important role in satisfaction of the customers.
The project explains about satisfaction of the customers who are trading with the Religare
securities Limited on the services provided by the RCL which is essential to smooth
functioning of the trading. The firm is able to satisfy their customers by providing quality
services and earning the higher profits in the market.
At last, it can be concluded that most of the customers are satisfied with services
provided by the Religare securities Limited and they are ready to give advice of
potential customers.
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APPENDIX
QUESTIONNAIRE
Name: ________________
Age:
[ ] Below 25 yrs [ ] 25-50 yrs [ ] 50-75 yrs [ ] Above 75 yrs
Occupation:
[ ] Business [ ] Profession [ ] Employed [ ] Others
Gender:
[ ] Male [ ] Female
Annual income:
[ ] Below 1, 00,000 [ ] 1, 00,000 -2, 00,00 [ ] 2, 00,000-5, 00,000
[ ] Above 5, 00,000
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[ ] >5% [ ] 5 % - 10 %
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What is the time horizon you have to achieve your financial goal?
[ ] 0-5 years
[ ] 6-10 years
[ ] 11-14 years
[ ] 15 years or longer
How do you intend to use the income earned by your investment portfolio?
[ ] Reinvest at least 80% of my earnings
[ ] Reinvest between 20% and 80% of my earnings
[ ] Receive at least 80% of my earnings as income
Taking into consideration all sources of income, what is your current attitude
towards your income needs:
[ ] I can forego at least 10% of my current income
[ ] Present income is adequate for present needs
[ ] I need at least 10% more income
How many months of living expenses could be safely covered by your current
Liquid investments?
[ ] More than 12 months
[ ] Between 4 and 12 months
[ ] Less than 4 months
Which of the following best describes your reaction if the value of your
portfolio suddenly declined 15%?
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(a) Liquidity (b) Low Risk (c) High Return (d) Trust
[ ] Yes [ ] No
If yes
where_______________________________________________________________
Rank your understanding and comfort-level with investing in the stock market
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BIBLIOGRAPHY
www.religareonline.com
www.religrecm.com
www.religarecommodities.com
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http://www.commodities.in
www.religaresecurities.com
www.moneycontrol.com
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