INTRODCTION

What is finance?
"Finance" is a broad term that describes two related activities: the study of how money is
managed and the actual process of acquiring needed funds. Because individuals,
businesses and government entities all need funding to operate, the field is often separated
into three sub-categories: personal finance, corporate finance and public finance.

1. In finance, the purchase of a financial product or other item of value with an expectation
of favorable future returns. In general terms, investment means the use money in the hope
of making more money.
2. In business, the purchase by a producer of a physical good, such as durable equipment
or inventory, in the hope of improving future business.
All three categories are concerned with activities such as pursuing sound investments,
obtaining low-cost credit, allocating funds for liabilities, and banking. Yet each has its own
specific considerations. For example, individuals need to provision for retirement
expenses, which means investing enough money during their working years and ensuring
that their asset allocation fits their long-term plans. A large company, on the other hand,
may have to decide whether to raise additional funds through a bond issue or stock
offering. Investment banks may advise the firm on such considerations and help them
market the securities.

As for public finance, in addition to managing money for its day-to-day operations, a
government body also has larger social responsibilities. Its goals include attaining an
equitable distribution of income for its citizens and enacting policies that lead to a stable
economy.
Investment Guidance
Whether youre new to investing or seeking direction to put your financial situation on the
right path, we have the tools, insight, and other resources to help you make smart
investment decisions.

Investment has different meanings in finance and economics.

In economics, investment is the accumulation of newly produced physical entities, such as
factories, machinery, houses, and goods inventories.

1
In finance, investment is putting money into an asset with the expectation of capital
appreciation, dividends, and/or interest earnings. This may or may not be backed by
research and analysis. Most or all forms of investment involve some form of risk, such as
investment in equities, property, and even fixed interest securities which are subject,
among other things, to inflation risk.
In economic theory or in macroeconomics, non-residential fixed investment is the amount
purchased per unit time of goods which are not consumed but are to be used for future
production (i.e. capital). Examples include railroad or factory construction. Investment in
human capital includes costs of additional schooling or on-the-job training. Inventory
investment is the accumulation of goods inventories; it can be positive or negative, and it
can be intended or unintended. In measures of national income and output, "gross
investment" ( represented by the variable I ) is a component of gross domestic product
(GDP), given in the formula GDP = C + I + G + NX, where C is consumption, G is
government spending, and NX is net exports, given by the difference between the exports
and imports, X M. Thus investment is everything that remains of total expenditure after
consumption, government spending, and net exports are subtracted (i.e. I = GDP C G
NX).
Non-residential fixed investment (such as new factories) and residential investment (new
houses) combine with inventory investment to make up I. "Net investment" deducts
depreciation from gross investment. Net fixed investment is the value of the net increase in
the capital stock per year.
Fixed investment, as expenditure over a period of time (e.g., "per year"), is not capital but
rather leads to changes in the amount of capital. The time dimension of investment makes
it a flow. By contrast, capital is a stock that is, accumulated net investment to a point in
time (such as December 31).
Investment is often modeled as a function of income and interest rates, given by the
relation I = f(Y, r). An increase in income encourages higher investment, whereas a higher
interest rate may discourage investment as it becomes more costly to borrow money. Even
if a firm chooses to use its own funds in an investment, the interest rate represents an
opportunity cost of investing those funds rather than lending out that amount of money for
interest.
In finance.

2
In finance, investment is the purchase of an asset or item with the hope that it will generate
income or appreciate in the future and be sold at the higher price. It generally does not
include deposits with a bank or similar institution. The term investment is usually used
when referring to a long-term outlook. This is the opposite of trading or speculation,
which are short-term practices involving a much higher degree of risk. Financial assets
take many forms and can range from the ultra safe low return government bonds to much
higher risk higher reward international stocks. A good investment strategy will diversify
the portfolio according to the specified needs. The most famous and successful investor of
all time is Warren Buffett. In March 2013 Forbes magazine had Warren Buffett ranked as
number 2 in their Forbes 400 list.[3] Buffett has advised in numerous articles and
interviews that a good investment strategy is long term and choosing the right assets to
invest in requires due diligence. Edward O. Thorp was a very successful hedge fund
manager in the 1970s and 1980s that spoke of a similar approach. Another thing they both
have in common is a similar approach to managing investment money. No matter how
successful the fundamental pick is, without a proper money management strategy, full
potential of the asset cant be reached. Both investors have been shown to use principles
from the Kelly criterion for money management. Numerous interactive calculators which
use the kelly criterion can be found online.
In contrast, dollar (or pound etc.) cost averaging and market timing are phrases often used
in marketing of collective investments and can be said to be associated with speculation.
Investments are often made indirectly through intermediaries, such as pension funds,
banks, brokers, and insurance companies. These institutions may pool money received
from a large number of individuals into funds such as investment trusts, unit trusts,
SICAVs etc. to make large scale investments. Each individual investor then has an indirect
or direct claim on the assets purchased, subject to charges levied by the intermediary,
which may be large and varied. It generally, does not include deposits with a bank or
similar institution. Investment usually involves diversification of assets in order to avoid
unnecessary and unproductive risk.

3
History

The Code of Hammurabi (around 1700 BC) provided a legal framework for investment,
establishing a means for the pledge of collateral by codifying debtor and creditor rights in
regard to pledged land. Punishments for breaking financial obligations were not as severe
as those for crimes involving injury or death.
In the early 1900s purchasers of stocks, bonds, and other securities were described in
media, academia, and commerce as speculators. By the 1950s, the term investment had
come to denote the more conservative end of the securities spectrum, while speculation
was applied by financial brokers and their advertising agencies to higher risk securities
much in vogue at that time. Since the last half of the 20th century, the terms speculation
and speculator have specifically referred to higher risk ventures.
An investment bank is a financial institution that assists individuals, corporations, and
governments in raising capital by underwriting and/or acting as the client's agent in the
issuance of securities. An investment bank may also assist companies involved in mergers
and acquisitions and provide ancillary services such as market making, trading of
derivatives and equity securities, and FICC services (fixed income instruments, currencies,
and commodities).
Unlike commercial banks and retail banks, investment banks do not take deposits. From
1933 (GlassSteagall Act) until 1999 (GrammLeachBliley Act), the United States
maintained a separation between investment banking and commercial banks. Other
industrialized countries, including G8 countries, have historically not maintained such a
separation. As part of the Dodd-Frank Act 2010, Volcker Rule asserts full institutional
separation of investment banking services from commercial banking.

There are two main lines of business in investment banking. Trading securities for cash or
for other securities (e.g. facilitating transactions, market-making), or the promotion of
securities (e.g. underwriting, research, etc.) is the "sell side", while buy side is a term used
to refer to advising institutions concerned with buying investment services. Private equity
funds, mutual funds, life insurance companies, unit trusts, and hedge funds are the most
common types of buy side entities.
An investment bank can also be split into private and public functions with an information
barrier which separates the two to prevent information from crossing. The private areas of

4
the bank deal with private insider information that may not be publicly disclosed, while
the public areas such as stock analysis deal with public information.
An advisor who provides investment banking services in the United States must be a
licensed broker-dealer and subject to Securities & Exchange Commission (SEC) and
Financial Industry Regulatory Authority (FINRA) regulation.[1]
Investment banking is split into front office, middle office, and back office activities.
While large service investment banks offer all lines of business, both sell side and buy
side, smaller sell-side investment firms such as boutique investment banks and small
broker-dealers focus on investment banking and sales/trading/research, respectively.
Investment banks offer services to both corporations issuing securities and investors
buying securities. For corporations, investment bankers offer information on when and
how to place their securities on the open market, an activity very important to an
investment bank's reputation. Therefore, investment bankers play a very important role in
issuing new security offerings.

Investment banking has changed over the years, beginning as a partnership form focused
on underwriting security issuance (initial public offerings and secondary offerings),
brokerage, and mergers and acquisitions, and evolving into a "full-service" range
including sell-side research, proprietary trading, and investment management. In the
modern 21st century, the SEC filings of the major independent investment banks such as
Goldman Sachs and Morgan Stanley reflect three product segments: (1) investment
banking (fees for M&A advisory services and securities underwriting); (2) asset
management (fees for sponsored investment funds), and (3) trading and principal
investments (broker-dealer activities including proprietary trading ("dealer" transactions)
and brokerage trading ("broker" transactions)).
In the United States, commercial banking and investment banking were separated by the
GlassSteagall Act, which was repealed in 1999. The repeal led to more "universal banks"
offering an even greater range of services. Many large commercial banks have therefore
developed investment banking divisions through acquisitions and hiring. Notable large
banks with significant investment banks include JPMorgan Chase, Bank of America,
Credit Suisse, Deutsche Bank, Barclays, and Wells Fargo. After the financial crisis of
20072008 and the subsequent passage of the DoddFrank Wall Street Reform and

5
Consumer Protection Act, regulations have limited certain investment banking operations,
notably with the Volcker Rule's restrictions on proprietary trading.
The traditional service of underwriting security issues has declined as a percentage of
revenue. As far back as 1960, 70% of Merrill Lynch's revenue was derived from
transaction commissions while "traditional investment banking" services accounted for
5%. However, Merrill Lynch was a relatively "retail-focused"
Corporate finance is the traditional aspect of investment banks which also involves
helping customers raise funds in capital markets and giving advice on mergers and
acquisitions (M&A). This may involve subscribing investors to a security issuance,
coordinating with bidders, or negotiating with a merger target. Another term for the
investment banking division is corporate finance, and its advisory group is often termed
"mergers and acquisitions". A pitch book of financial information is generated to market
the bank to a potential M&A client; if the pitch is successful, the bank arranges the deal
for the client. The investment banking division (IBD) is generally divided into industry
coverage and product coverage groups. Industry coverage groups focus on a specific
industry such as healthcare, public finance (governments), FIG (financial institutions
group), industrials, TMT (technology, media, and telecommunication) and maintains
relationships with corporations within the industry to bring in business for the bank.
Product coverage groups focus on financial products such as mergers and acquisitions,
leveraged finance, public finance, asset finance and leasing, structured finance,
restructuring, equity, and high-grade debt and generally work and collaborate with
industry groups on the more intricate and specialized needs of a client. The Wall Street
Journal, in partnership with Dealogic, publishes figures on investment banking revenue
such as M&A in its Investment Banking Scorecard with a large brokerage network.
Initial public offer
"IPO" redirects here. For other uses, see IPO (disambiguation).
An initial public offering (IPO) or stock market launch is a type of public offering where
shares of stock in a company are sold to the general public, on a securities exchange, for
the first time. Through this process, a private company transforms into a public company.
Initial public offerings are used by companies to raise expansion capital, to possibly
monetize the investments of early private investors, and to become publicly traded
enterprises. A company selling shares is never required to repay the capital to its public
investors. After the IPO, when shares trade freely in the open market, money passes

6
between public investors. Although an IPO offers many advantages, there are also
significant disadvantages. Chief among these are the costs associated with the process, and
the requirement to disclose certain information that could prove helpful to competitors, or
create difficulties with vendors. Details of the proposed offering are disclosed to potential
purchasers in the form of a lengthy document known as a prospectus. Most companies
undertaking an IPO do so with the assistance of an investment banking firm acting in the
capacity of an underwriter. Underwriters provide several services, including help with
correctly assessing the value of shares (share price), and establishing a public market for
shares (initial sale). Alternative methods such as the dutch auction have also been
explored. In terms of size and public participation, the most notable example of this
method is the Google IPO.[1] China has recently emerged as a major IPO market, with
several of the largest IPOs taking place in that country.

History
The earliest form of a company which issued public shares was the publicani during the
Roman Republic. Like modern joint-stock companies, the publicani were legal bodies
independent of their members whose ownership was divided into shares, or parties. There
is evidence that these shares were sold to public investors and traded in a type of over-the-
counter market in the Forum, near the Temple of Castor and Pollux. The shares fluctuated
in value, encouraging the activity of speculators, or quaestors. Mere evidence remains of
the prices for which partes were sold, the nature of initial public offerings, or a description
of stock market behavior. Publicanis lost favor with the fall of the Republic and the rise of
the Empire.
In March 1602 the Vereenigde Oost-Indische Compagnie (VOC), or Dutch East India
Company was formed. The VOC was the first modern company to issue public shares, and
it is this issuance, at the beginning of the 17th century, that is considered the first modern
IPO. The company had an original paid-up share capital of 6,424,588 guilders. The ability
to raise this large sum is attributable to the decision taken by the owners to open up access
to share ownership to a wide public. Everyone living in the United Provinces had an
opportunity to participate in the Company. Each share was worth 3000 guilders (roughly
equivalent to US$1,500). All the shares were tradable, and the shareholders received
receipts for the purchase. A share certificate documenting payment and ownership such as

7
we know today was not issued but ownership was instead entered in the companys share
register.
In the United States, the first IPO was the public offering of Bank of North America
around 1783.

Advantages
When a company lists its securities on a public exchange, the money paid by the investing
public for the newly issued shares goes directly to the company (primary offering) as well
as to any early private investors who opt to sell all or a portion of their holdings
(secondary offering) as part of the larger IPO. An IPO, therefore, allows a company to tap
into a wide pool of potential investors to provide itself with capital for future growth,
repayment of debt, or working capital. A company selling common shares is never
required to repay the capital to its public investors. Those investors must endure the
unpredictable nature of the open market to price and trade their shares. After the IPO,
when shares trade freely in the open market, money passes between public investors. For
early private investors who choose to sell shares as part of the IPO process, the IPO
represents an opportunity to monetize their investment. After the IPO, once shares trade in
the open market, investors holding large blocks of shares can either sell those shares
piecemeal in the open market, or sell a large block of shares directly to the public, at a
fixed price, through a secondary market offering. This type of offering is not dilutive,
since no new shares are being created.
Once a company is listed, it is able to issue additional common shares in a number of
different ways, one of which is the follow-on offering. This method provides capital for
various corporate purposes through the issuance of equity (see stock dilution) without
incurring any debt. This ability to quickly raise potentially large amounts of capital from
the marketplace is a key reason many companies seek to go public.
An IPO accords several benefits to the previously private company:
Enlarging and diversifying equity base
Enabling cheaper access to capital
Increasing exposure, prestige, and public image
Attracting and retaining better management and employees through liquid equity
participation
Facilitating acquisitions (potentially in return for shares of stock)

8
Creating multiple financing opportunities: equity, convertible debt, cheaper bank loans,
etc.

Disadvantages
There are several disadvantages to completing an initial public offering:
Significant legal, accounting and marketing costs, many of which are ongoing
Requirement to disclose financial and business information
Meaningful time, effort and attention required of senior management
Risk that required funding will not be raised
Public dissemination of information which may be useful to competitors, suppliers and
customers.
Loss of control and stronger agency problems due to new shareholders

Advance planning
Planning is crucial to a successful IPO suggests the following 7 advance planning steps:
(1) develop an impressive management and professional team; (2) grow the company's
business with an eye to the public marketplace; (3) obtain audited financial statements
using IPO-accepted accounting principles; (4) clean up the company's act; (5) establish
antitakeover defences; (6) develop good corporate governance; (7) create insider bail-out
opportunities and take advantage of IPO windows.

Retention of underwriters
IPOs generally involve one or more investment banks known as "underwriters". The
company offering its shares, called the "issuer", enters into a contract with a lead
underwriter to sell its shares to the public. The underwriter then approaches investors with
offers to sell those shares.
A large IPO is usually underwritten by a "syndicate" of investment banks, the largest of
which take the position of "lead underwriter". Upon selling the shares, the underwriters
retain a portion of the proceeds as their fee. This fee is called an underwriting spread. The
spread is calculated as a discount from the price of the shares sold (called the gross
spread). Components of an underwriting spread in an initial public offering (IPO) typically
include the following (on a per share basis): Manager's fee, Underwriting feeearned by
members of the syndicate, and the Concessionearned by the broker-dealer selling the

9
shares. The Manager would be entitled to the entire underwriting spread. A member of the
syndicate is entitled to the underwriting fee and the concession. A broker dealer who is not
a member of the syndicate but sells shares would receive only the concession, while the
member of the syndicate who provided the shares to that broker dealer would retain the
underwriting fee. Usually, the managing/lead underwriter, also known as the bookrunner,
typically the underwriter selling the largest proportions of the IPO, takes the highest
portion of the gross spread, up to 8% in some cases.
Multinational IPOs may have many syndicates to deal with differing legal requirements in
both the issuer's domestic market and other regions. For example, an issuer based in the
E.U. may be represented by the main selling syndicate in its domestic market, Europe, in
addition to separate syndicates or selling groups for US/Canada and for Asia. Usually, the
lead underwriter in the main selling group is also the lead bank in the other selling groups.
Because of the wide array of legal requirements and because it is an expensive process,
IPOs also typically involve one or more law firms with major practices in securities law,
such as the Magic Circle firms of London and the white shoe firms of New York City.
Financial historians Richard Sylla and Robert E. Wright have shown that before 1860 most
early U.S. corporations sold shares in themselves directly to the public without the aid of
intermediaries like investment banks.[8] The direct public offering or DPO, as they term it,
[9] was not done by auction but rather at a share price set by the issuing corporation. In
this sense, it is the same as the fixed price public offers that were the traditional IPO
method in most non-US countries in the early 1990s. The DPO eliminated the agency
problem associated with offerings intermediated by investment banks. There has recently
been a movement based on crowd funding to revive the popularity of Direct Public
Offerings.
Allocation and pricing
The sale (allocation and pricing) of shares in an IPO may take several forms. Common
methods include:
Best efforts contract
Firm commitment contract
All-or-none contract
Bought deal
Public offerings are sold to both institutional investors and retail clients of the
underwriters. A licensed securities salesperson (Registered Representative in the USA and

10
Canada) selling shares of a public offering to his clients is paid a portion of the selling
concession (the fee paid by the issuer to the underwriter) rather than by his client. In some
situations, when the IPO is not a "hot" issue (undersubscribed), and where the salesperson
is the client's advisor, it is possible that the financial incentives of the advisor and client
may not be aligned.
The issuer usually allows the underwriters an option to increase the size of the offering by
up to 15% under certain circumstance known as the greenshoe or overallotment option.
This option is always exercised when the offering is considered a "hot" issue, by virtue of
being oversubscribed.
In the USA, clients are given a preliminary prospectus, known as a red herring prospectus,
during the initial quiet period. The red herring prospectus is so named because of a bold
red warning statement printed on its front cover. The warning states that the offering
information is incomplete, and may be changed. The actual wording can vary, although
most roughly follow the format exhibited on the Facebook IPO red herring.[11] During the
quiet period, the shares cannot be offered for sale. Brokers can, however, take indications
of interest from their clients. At the time of the stock launch, after the Registration
Statement has become effective, indications of interest can be converted to buy orders, at
the discretion of the buyer. Sales can only be made through a final prospectus cleared by
the Securities and Exchange Commission.
Before legal actions initiated by New York Attorney General Eliot Spitzer, which later
became known as the Global Settlement enforcement agreement, some large investment
firms had initiated favorable research coverage of companies in an effort to aid Corporate
Finance departments and retail divisions engaged in the marketing of new issues. The
central issue in that enforcement agreement had been judged in court previously. It
involved the conflict of interest between the investment banking and analysis departments
of ten of the largest investment firms in the United States. The investment firms involved
in the settlement had all engaged in actions and practices that had allowed the
inappropriate influence of their research analysts by their investment bankers seeking
lucrative fees. A typical violation addressed by the settlement was the case of CSFB and
Salomon Smith Barney, which were alleged to have engaged in inappropriate spinning of
"hot" IPOs and issued fraudulent research reports in violation of various sections within
the Securities Exchange Act of 1934.

11
Pricing of IPO
A company planning an IPO typically appoints a lead manager, known as a bookrunner, to
help it arrive at an appropriate price at which the shares should be issued. There are two
primary ways in which the price of an IPO can be determined. Either the company, with
the help of its lead managers, fixes a price ("fixed price method"), or the price can be
determined through analysis of confidential investor demand data compiled by the
bookrunner ("book building").
Historically, some IPOs both globally and in the United States have been underpriced. The
effect of "initial underpricing" an IPO is to generate additional interest in the stock when it
first becomes publicly traded. Flipping, or quickly selling shares for a profit, can lead to
significant gains for investors who have been allocated shares of the IPO at the offering
price. However, underpricing an IPO results in lost potential capital for the issuer. One
extreme example is theglobe.com IPO which helped fuel the IPO "mania" of the late 90's
internet era. Underwritten by Bear Stearns on November 13, 1998, the IPO was priced at
$9 per share. The share price quickly increased 1000% after the opening of trading, to a
high of $97. Selling pressure from institutional flipping eventually drove the stock back
down, and it closed the day at $63. Although the company did raise about $30 million
from the offering it is estimated that with the level of demand for the offering and the
volume of trading that took place the company might have left upwards of $200 million on
the table.
The danger of overpricing is also an important consideration. If a stock is offered to the
public at a higher price than the market will pay, the underwriters may have trouble
meeting their commitments to sell shares. Even if they sell all of the issued shares, the
stock may fall in value on the first day of trading. If so, the stock may lose its
marketability and hence even more of its value. This could result in losses for investors,
many of whom being the most favored clients of the underwriters. Perhaps the best known
example of this is the Facebook IPO in 2012.
Underwriters, therefore, take many factors into consideration when pricing an IPO, and
attempt to reach an offering price that is low enough to stimulate interest in the stock, but
high enough to raise an adequate amount of capital for the company. The process of
determining an optimal price usually involves the underwriters ("syndicate") arranging
share purchase commitments from leading institutional investors.

12
Some researchers (e.g. Geoffrey C., and C. Swift, 2009) believe that the underpricing of
IPOs is less a deliberate act on the part of issuers and/or underwriters, than the result of an
over-reaction on the part of investors (Friesen & Swift, 2009). One potential method for
determining underpricing is through the use of IPO Underpricing Algorithms.

Dutch auction
A Dutch Auction allows shares of an initial public offering to be allocated based only on
price aggressiveness, with all successful bidders paying the same price per share.[13][14]
One version of the Dutch auction is Open IPO, which is based on an auction system
designed by Nobel Prize-winning economist William Vickrey. This auction method ranks
bids from highest to lowest, then accepts the highest bids that allow all shares to be sold,
with all winning bidders paying the same price. It is similar to the model used to auction
Treasury bills, notes, and bonds since the 1990s. Before this, Treasury bills were auctioned
through a discriminatory or pay-what-you-bid auction, in which the various winning
bidders each paid the price (or yield) they bid, and thus the various winning bidders did
not all pay the same price. Both discriminatory and uniform price and "Dutch" auctions
have been used for IPOs in many countries, although only uniform price auctions have
been used so far in the US. Large IPO auctions include Japan Tobacco, Singapore
Telecom, BAA Plc. and Google (ordered by size of proceeds).
A variation of the Dutch auction has been used to take a number of U.S. companies public
including Morningstar, Interactive Brokers Group, Overstock.com, Ravenswood Winery,
Clean Energy Fuels, and Boston Beer Company. In 2004, Google used the Dutch auction
system for its Initial Public Offering. Traditional U.S. investment banks have shown
resistance to the idea of using an auction process to engage in public securities offerings.
The auction method allows for equal access to the allocation of shares and eliminates the
favorable treatment accorded important clients by the underwriters in conventional IPOs.
In the face of this resistance, the Dutch auction is still a little used method in U.S. public
offerings, although there have been hundreds of auction IPOs in other countries.
In determining the success or failure of a Dutch auction, one must consider competing
objectives. If the objective is to reduce risk, a traditional IPO may be more effective
because the underwriter manages the process, rather than leaving the outcome in part to
random chance in terms of who chooses to bid or what strategy each bidder chooses to
follow. From the viewpoint of the investor, the Dutch auction allows everyone equal

13
access. Moreover, some forms of the Dutch auction allow the underwriter to be more
active in coordinating bids and even communicating general auction trends to some
bidders during the bidding period. Some have also argued that a uniform price auction is
more effective at price discovery, although the theory behind this is based on the
assumption of independent private values (that the value of IPO shares to each bidder is
entirely independent of their value to others, even though the shares will shortly be traded
on the aftermarket). Theory that incorporates assumptions more appropriate to IPOs does
not find that sealed bid auctions are an effective form of price discovery, although possibly
some modified form of auction might give a better result.
In addition to the extensive international evidence that auctions have not been popular for
IPOs, there is no U.S. evidence to indicate that the Dutch auction fares any better than the
traditional IPO in an unwelcoming market environment. A Dutch Auction IPO by White
Glove Health, Inc., announced in May 2011 was postponed in September of that year, after
several failed attempts to price. An article in the Wall Street Journal cited the reasons as
"Broader stock-market volatility and uncertainty about the global economy have made
investors wary of investing in new stocks."

Quiet period
Under American securities law, there are two time windows commonly referred to as
"quiet periods" during an IPO's history. The first and the one linked above is the period of
time following the filing of the company's S-1 but before SEC staff declare the registration
statement effective. During this time, issuers, company insiders, analysts, and other parties
are legally restricted in their ability to discuss or promote the upcoming IPO (U.S.
Securities and Exchange Commission, 2005).
The other "quiet period" refers to a period of 40 calendar days following an IPO's first day
of public trading. During this time, insiders and any underwriters involved in the IPO are
restricted from issuing any earnings forecasts or research reports for the company.
Regulatory changes enacted by the SEC as part of the Global Settlement enlarged the
"quiet period" from 25 days to 40 days on July 9, 2002. When the quiet period is over,
generally the underwriters will initiate research coverage on the firm. Additionally, the
NASDAQ and NYSE have approved a rule mandating a 10-day quiet period after a
Secondary Offering and a 15-day quiet period both before and after expiration of a "lock-
up agreement" for a securities offering.

14
Delivery of shares
Not all IPOs are eligible for delivery settlement through the DTC system, which would
then either require the physical delivery of the stock certificates to the clearing agent
bank's custodian, or a delivery versus payment (DVP) arrangement with the selling group
brokerage firm.

Stag profit (flipping)

"Stag profit" is a situation in the stock market before and immediately after a company's
Initial public offering (or any new issue of shares). A "stag" is a party or individual who
subscribes to the new issue expecting the price of the stock to rise immediately upon the
start of trading. Thus, stag profit is the financial gain accumulated by the party or
individual resulting from the value of the shares rising. This term is more popular in the
United Kingdom than in the United States. In the US, such investors are usually called
flippers, because they get shares in the offering and then immediately turn around
"flipping" or selling them on the first day of trading.
Documents under seal in a decade-long lawsuit concerning eToys.com's IPO but obtained
by New York Times Wall Street Business columnist Joe Nocera alleged that IPOs managed
by Goldman Sachs and other investment bankers involved asking for kickbacks from their
institutional clients who made large profits flipping IPOs which Goldman had
intentionally undervalued. Depositions in the lawsuit alleged that clients willingly
complied with these demands because they understood it was necessary in order to
participate in future hot issues. Reuters Wall Street correspondent Felix Salmon retracted
his earlier, more conciliatory, statements on the subject and said he believed that the
depositions show that companies going public and their initial consumer stockholders are
both defrauded by this practice, which may be widespread throughout the IPO finance
industry. The case is ongoing, and the allegations remain unproven.

Largest IPOs
Agricultural Bank of China US$22.1 billion (2010)
Industrial and Commercial Bank of China US$21.9 billion (2006)
American International Assurance US$20.5 billion (2010)
Visa Inc. US$19.7 billion (2008)
General Motors US$18.15 billion (2010)

15
Facebook, Inc. US$16 billion (2012)

Largest IPO markets

Prior to 2009, the United States was the leading issuer of IPOs in terms of total value.
Since that time, however, China (Shanghai, Shenzhen and Hong Kong) has been the
leading issuer, raising $73 billion (almost double the amount of money raised on the New
York Stock Exchange and NASDAQ combined) up to the end of November 2011. The
Hong Kong Stock Exchange raised 30.9 billion in 2011 as the top course for the third year
in a row, while New York raised 30.7 billion.
This project report is based on determining approach for selection initial public offer. It
also offers secured online share trading platform and investment activities in secure, cost
effective and convenient manner. To enable wider participation, it also provides the
convenience of trading offline through variety of means, including Call & Trade, Branch
dealing Desk and its network of affiliates. Reliance Securities has a pan India presence
at more than 1,700 locations. Reliance Capital is one of India's leading and fastest growing
private sector financial services companies, and ranks among the top 3 private sector
financial services and banking groups, in terms of net worth.
New media such as blogs, websites or text messages. Commercial advertisers often seek to
generate increased consumption of their products or services through "branding," which
involves associating a product name or image with certain qualities in the minds of
consumers. Non-commercial advertisers who spend money to advertise items other than a
consumer product or service include political parties, interest groups, religious
organizations and governmental agencies. Nonprofit organizations may rely on free modes
of persuasion, such as a public service announcement (PSA). cinema and television
adverts, web banners, mobile telephone screens, shopping carts, web popups, skywriting,
bus stop benches, human billboards and forehead advertising, magazines, newspapers,
town criers, sides of buses, banners attached to or sides of airplanes ("logojets"), in-flight
advertisements on seatback tray tables or overhead storage bins, taxicab doors, roof
mounts and passenger screens, musical stage shows, subway platforms and trains, elastic
bands on disposable diapers, doors of bathroom stalls, stickers on apples in supermarkets,
shopping cart handles (grabertising), the opening section of streaming audio and video,
posters, and the backs of event tickets and supermarket receipts. Any place an "identified"
sponsor pays to deliver their message through a medium is advertising.

16
Ion (as of 2012). Some television commercials feature a song or jingle that listeners soon
relate to the product. Virtual advertisements may be inserted into regular television
programming through computer graphics. It is typically inserted into otherwise blank
backdrops or used to replace local billboards that are not relevant to the remote broadcast
announce. More controversially, virtual billboards may be inserted into the background
where none exist in real-life. This technique is especially used in televised sporting events.
Virtual product placement is also possible.
An infomercial is a long-format television commercial, typically five minutes or longer.
The word "infomercial" is a portmanteau of the words "information" & "commercial". The
main objective in an infomercial is to create an impulse purchase, so that the consumer
sees the presentation and then immediately buys the product through the advertised toll-
free telephone number or website. Infomercials describe, display, and often demonstrate
products and their features, and commonly have testimonials from consumers and industry
professionals.
The IPOs. It also offers secured online share trading platform and investment activities in
secure, cost effective and convenient manner. To enable wider participation, it also
provides the convenience of trading offline through variety of means, including Call &
Trade, Branch dealing Desk and its network of affiliates. Reliance Securities has a pan
India presence at more than 1,700 locations. Reliance Capital is one of India's leading and
fastest growing private sector financial services companies, and ranks among the top 3
private sector financial services and banking groups, in terms of net worth. Advertising is
a form of communication for marketing and used to encourage, persuade, we have
always believed in offering the best to our customers. Be it Research, providing Trading
platforms, Relationship Managers, Our Customer Services and so on.
Online Service offers
Both browser based and desktop based trading platforms based on your requirements.
Integrated market watch for NSE / BSE and Derivatives (NSE).
Real time streaming quotes and charting facility with host of indicators.
Live market research recommendations to take informed decisions.
Apply in IPO and Mutual Funds investments in just a click of a button.
Invest in ETFs with convenience.
Integrated Limits for seamless order execution.

17
 After Market Orders invest round the clock.
Highest security with our security token you can be relieved of online investing.

Financial services. Reliance Capital has a net worth of Rs. 7,887 crore (US$ 2 billion) and
total assets of Rs. 32,419 crore (US$ 7 billion) as on June 30, 2011. The concluding points
of this project reports are as follows:

Mostly investors are aware about Reliance Securities and have an interested in Reliance
Securities. The type of investment which the investors prefer is insurance and are interest
to invest in Reliance Securities. Most of the investors have seen the advertisement of
Reliance which they like most on TV. The investors like the advertisement because its
theme and making is appreciable and they think that advertisement has forced them to
invest in financial products. The media is presenting the advertisement more effective for
financial schemes is TV. The advertisement is necessary for the sale of financial schemes.
The expenditure incurred an advertisement of financial schemes is such effective that it
adds to profit.
The financial industry, or financial services industry, includes a wide range of companies
and institutions involved with money, including businesses providing money management,
lending, investing, and insuring and securities issuance and trading services. many
institutions are a part of the financial industry like Banks, Credit card issuers, Insurance
companies, Investment bankers, Securities traders, financial planners and Security
exchanges A stock market or equity market is a public (a loose network of economic
transactions, not a physical facility or discrete) entity for the trading of company stock
(shares) and derivatives at an agreed price, these are securities listed on a stock exchange
as well as those only traded privately.
The size of the world stock market was estimated at about $36.6 trillion at the start of
October 2008. The total world derivatives market has been estimated at about $791 trillion
face or nominal value, 11 times the size of the entire world economy. the value of the
derivatives market, because it is stated in terms of notional values, cannot be directly
compared to a stock or a fixed income security, which traditionally refers to an actual
value. Moreover, the vast majority of derivatives.

18
The financial system in most western countries has undergone a remarkable
transformation. One feature of this development is disintermediation. A portion of the
funds involved in saving and financing, flows directly to the financial markets instead of
being routed via the traditional bank lending and deposit operations. The general public's
heightened interest in investing in the stock market, either directly or through mutual
funds, financial assets in many countries. In the 1970s, in Sweden, deposit accounts and
other very liquid assets with little risk made up almost 60 percent of households' financial
wealth, compared to less than 20 percent in the 2000s. The major part of this adjustment in
financial portfolios has gone directly to shares but a good deal now takes the form of
various kinds of institutional investment for groups of individuals, example- pension
funds, mutual funds, hedge funds, insurance investment of premiums, etc. The trend
towards forms of saving with a higher risk has been accentuated by new rules for most
funds and insurance, permitting a higher proportion of shares to bonds. Similar tendencies
are to be found in other industrialized countries. In all developed economic systems, such as
the European Union, the United States, Japan and other developed nations, the trend has
been the same: saving has moved away from traditional (government insured) bank
deposits to more risky securities of one
The movements of the prices in a market or section of a market are captured in price
indices called stock market indices, of which there are many, e.g., the S&P, the FTSE and
the Euro next indices. Such indices are usually market capitalization weighted, with the
weights reflecting the contribution of the stock to the index. The constituents of the index
are reviewed frequently to include/exclude stocks in order to reflect the changing business
Financial innovation has brought many new financial instruments whose pay-offs or
values depend on the prices of stocks. Some examples are exchange-traded funds (ETFs),
stock index and stock options, equity swaps, single-stock futures, and stock index futures.
These last two may be traded on futures exchanges (which are distinct from stock Stock
that a trader does not actually own may be traded using short selling; margin buying may be
used to purchase stock with borrowed funds; or, derivatives may be used to control large
blocks of stocks for a much smaller amount of money than would be required by outright
purchase or sales.

19
OBJECTIVES OF THE STUDY
Reliance Securities Limited is a Reliance Capital company and part of the Reliance Group.
Reliance Securities endeavors to change the way investors transact in equities markets and
avails services. It Provides customers with access to Equity, Derivatives, Portfolio
Management Services*, Investment
Mutual Funds & IPOs. It also offers secured online share trading platform and investment
Activities in secure, cost effective and convenient manner. To enable wider participation, it
also
Provides the convenience of trading offline through variety of means, including Call &
Trade, Branch
That Services Investment Banking*, Mutual Funds & IPOs. It also offers secured online
Share trading platform and investment activities in secure, cost effective and convenient
manner. To enable wider participation, it also provides the convenience of trading offline
through variety of means, including Call & Trade, Branch dealing Desk and its network of
affiliates. Reliance Securities has a pan India presence at more than 1,700 locations.
Reliance Capital is one of India's leading and fastest growing private sector financial
services companies, and ranks among the top 3 private sector financial services and
banking groups, in terms of net worth.

20
SCOPE & IMPORTANCE
Customers with access to Equity, Derivatives, Portfolio Management Services Investment
Banking, Mutual Funds & IPOs. It also offers secured online share trading platform and
investment activities insecure, cost effective and convenient enable wider participation, it
also provides the convenience of trading offline through variety of means, including Call
& Trade, Branch dealing Desk and its network of affiliates. Reliance Securities has a pan
India presence at more than 1,700 locations
Advertising plays a very important role in todays age of competition. Advertising is one
thing which has become a necessity for everybody in todays day to day life, be it the
producer, the traders, or the customer. Advertising is an important part. Lets have a look
on how and where is advertising important:

21
INDUSTRY PROFILE
The financial industry, or financial services industry, includes a wide range of companies
and institutions involved with money, including businesses providing money management,
lending, investing, and insuring and securities issuance and trading services.
A stock market or equity market is a public (a loose network of economic transactions, not
a physical facility or discrete) entity for the trading of company stock (shares) and
derivatives at an agreed price; these are securities listed on a stock exchange as well as
those only traded privately. The size of the world stock market was estimated at about
$36.6 trillion at the start of October 2008. The total world derivatives market has been
estimated at about $791 trillion face or nominal value, 11 times the size of the entire world
economy. The value of the derivatives market, because it is stated in terms of notional
values, cannot be directly compared to a stock or a fixed income security, which
traditionally refers to an actual value. Moreover, the vast majority of derivatives 'cancel'
each other out (i.e., a derivative 'bet' on an event occurring is offset by a comparable
derivative 'bet' on the event not occurring). Many such relatively illiquid securities are
valued as marked to model, rather than an actual market price.
The stocks are listed and traded on stock exchanges which are entities of a corporation or
mutual organization specialized in the business of bringing buyers and sellers of the
organizations to a listing of stocks and securities together. The largest stock market in the
United States, by market cap, is the New York Stock Exchange (NYSE). In Canada, the
largest stock market is the Toronto Stock Exchange. Major European examples of stock
exchanges include the Amsterdam Stock Exchange, London Stock Exchange, Paris
Bourse, and the Deutsche Brse (Frankfurt Stock Exchange). In Africa, examples include
Nigerian Stock Exchange, JSE Limited, etc. Asian examples include the Singapore
Exchange, the Tokyo Stock Exchange, the Hong Kong Stock Exchange, the Shanghai
Stock Exchange, and the Bombay Stock Exchange. In Latin America, there are such
exchanges as the BM&F Bovespa and the BMV.
A few decades ago, worldwide, buyers and sellers were individual investors, such as
wealthy businessmen, usually with long family histories to particular corporations. Over
time, markets have become more "institutionalized"; buyers and sellers are largely
institutions (e.g., pension funds, insurance companies, mutual funds, index funds, exchange-
traded funds, hedge funds, investor groups, banks and various other financial institutions).

22
The rise of the institutional investor has brought with it some improvements in market
operations. Thus, the government was responsible for "fixed" (and exorbitant) fees being
markedly reduced for the 'small' investor, but only after the large institutions had managed
to break the brokers' solid front on fees. (They then went to 'negotiated' fees, but only for
large institutions). However, corporate governance (at least in the West) has been very
much adversely affected by the rise of (largely 'absentee') institutional 'owners'.
The financial system in most western countries has undergone a remarkable
transformation. One feature of this development is disintermediation. A portion of the
funds involved in saving and financing, flows directly to the financial markets instead of
being routed via the traditional bank lending and deposit operations. The general public's
heightened interest in investing in the stock market, either directly or through mutual
funds, has been an important component of this process. Statistics show that in recent
decades shares have made up an increasingly large proportion of households' financial
assets in many countries. In the 1970s, in Sweden, deposit accounts and other very liquid
assets with little risk made up almost 60 percent of households' financial wealth, compared
to less than 20 percent in the 2000s. The major part of this adjustment in

23
COMPANY PROFILE

Reliance Securities comes from the house of Reliance Capital, one of Indias
leading & prominent financial houses. Founded in 1986, Reliance Capital has come a long
way from being into steady annuity yielding businesses such as leasing, bill discounting,
and inter-corporate deposits to diversifying its activities in the areas of asset management
and mutual fund; life and general insurance; consumer finance and industrial finance;
stock broking; depository services; private equity and proprietary investments; exchanges,
asset reconstruction; distribution of financial products and other activities in financial
services. Reliance Capital has a net worth of Rs. 7,887 crore (US$ 2 billion) and total
assets of Rs. 32,419 crore (US$ 7 billion) as on June 30, 2011

Reliance Securities
Reliance Securities Limited is a Reliance Capital company and part of the Reliance Group.
Reliance Securities endeavors to change the way investors transact in equities markets and
avails services. It provides customers with access to Equity, Derivatives, Portfolio
Management Services*, Investment Banking*, Mutual Funds & IPOs. It also offers
secured online share trading platform and investment activities in secure, cost effective
and convenient manner. To enable wider participation, it also provides the convenience of
trading offline through variety of means, including Call & Trade, Branch dealing Desk and
its network of affiliates. Reliance Securities has a pan India presence at more than 1,700
locations.
Reliance Capital is one of India's leading and fastest growing private sector financial
services companies, and ranks among the top 3 private sector financial services and
banking groups, in terms of net worth.

24
Awards & Achievements
Reliance Securities has been rated no. 1 by Starcom Worldwide for online security and
cost effectiveness in 2007
'Debutant Franchisor of the Year' at the 5th International Franchisee & Retail show
2007
'Best in category Service Franchise' at the 6th International Franchise & Retail show
2008
'Best E-Brokerage Houser 2008' (runner's up) by Outlook Money NDTV Profit Awards
'Largest E-Broking House & Best Equity Broking House for the year 2009' by Dun &
Bradstreet
'Largest E-Broking House 2010' by Dun & Bradstreet
'My FM Stars of the Industry 2011' for excellence in Online Demat
Reliance Securities Limited is now ISO 9001:2008 certified for Online Trading
Platform
'Brand Leadership Legacy Award' at the Asian Leadership Awards - Dubai, 2011

Reliance Capital Limited (BSE: 500111, NSE: RELCAPITAL) is a financial services

company and part of a Reliance Anil Dhirubhai Ambani Group. It is registered with the
Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934. as a
public limited company in 1986 and is now listed on the Bombay Stock Exchange and the
National Stock Exchange (India). It is headed by Anil Ambani and is a part of the Reliance
ADA Group. Reliance Capital ranks among the top 3 private sector financial services and
banking companies, in terms of net worth.

Interests
Reliance Capital has interests in:
Asset management
Mutual funds
Life and general insurance
Private equity and proprietary investments
Stock broking
Reliance PMS
Depository services and financial products
25
 Consumer finance and other activities in financial services

ICEX
Commodity markets regulator FMC said it has given approval to the Anil Ambani Group
to acquire 26 per cent stake in Indian Commodity Exchange (ICEX) from one of its
promoters, Indiabulls group. "We have given permission to Anil Ambani Group to buy 26
per cent stake in ICEX from Indiabulls," Forward Markets Commission (FMC) Chairman
B C Khatua said. At present, Indiabulls holds 40 per cent in ICEX, of which it wants to
sell 26 per cent stake in the bourse to ADAG. MMTC has 26 per cent stake in ICEX,
which is the country's fourth national commodity exchange launched late last year. "We
entered the exchange business in late 2009. We have already started a spot exchange and
have a 26 per cent stake in a commodities exchange," ADAG Group Chairman Anil
Ambani had said yesterday at the AGM of group firm Reliance Capital. The Group had
also announced its intention to enter all segments of the exchange business. Reliance
Capital is already in the spot commodity space. Another group firm Reliance Money also
has stake in the national commodity exchange NMCE.ICEX, a national-level commodity
bourse, offers futures trading in 18 commodities, including bullion, metals and agricultural
items. The exchange clocked a business of Rs 13,009 crore in the first fortnight of
September. Reliance Mutual Fund is India's no.1 Mutual Fund. Reliance Life Insurance is
one of India's fastest growing life insurance company and among the top 4 private sector
insurers. Reliance General Insurance is one of India's fastest growing general insurance
company and among the top 3 private sector insurers. Reliance Money is the largest
brokerage and distributor of financial products in India with over 2.7 million customers
and has the largest distribution network. Reliance Consumer finance has a loan book of
over Rs. 8,900 crore at the end of December 2008. Reliance Capital is a constituent of
S&P CNX Nifty and MSCI India and also features in the Forbes list of Worlds largest
2000 public companies. Reliance Securities, subsidiary of Reliance Capital achieved a
pan-India presence with over 5,000 outlets and the average daily turnover had increased to
Rs 2,300 crore (Rs 23 billion) in 2010.

26
Management Team
Reliance Securities is lead by a team of distinguished individuals dedicated towards
scaling the company to greater heights through innovative products and services that
create value for our customers & stake holders.

EQUITY

CNC Stands for Cash-n-Collateral: You can take delivery positions using this product.

Buy transactions will require 100% margins (Cash plus Approved Collateral) and Sell
transactions will be allowed based on the Demat holdings available and limits will be
enhanced instantly for sale value.

Position Conversion: Use this feature to convert your CNC position to NRML / MIS
before specified cut off time subject to availability of required margins.

If CNC positions are taken against collateral, you are required to clear your debit by T+2
day or else Delayed payment Charges (DPC) will be levied from T+2 day onwards. If
debits are not cleared by T+6 day, RSL will liquidate the positions anytime on or after T+7
day.

If debits are not cleared by T+6 days, further exposure will not be allowed in that
particular exchange effective from T+7 day onwards.

Trading Intraday
The Margin Intraday Square-off (MIS) facilitates you to take leverage in intraday position
in cash & futures. Unlike CNC, instead of blocking 100% as margin, it only blocks a pre-
specified percentage as margin.
You can Buy and Sell stocks on NSE and BSE during the trading hours. You need to
square off all open positions under MIS product before 3:20 p.m. on same trading day.
There are two additional features in the MIS that enhance your intraday buying positions
viz. Plus Multiplier and Super Multiplier both these are intraday products as well.
MIS is a product that offers approximately 5 times exposure in cash segment, 6.5 times in
stock futures and 10 times in index futures.
Investor gets an add-on benefit of complementary Life insurance cover to take care of
pending RSP-Insure Installments in case of untimely demise of Investor.

27
Investment through RSP Insure can be done in selected stocks, ETFs & Mutual fund
schemes (listed on exchange platform) specified by Reliance Securities Limited.
The Insurance cover is provided under a Group Term Insurance to individual investors
opting for RSP Insure. In the unfortunate event of demise, insurance cover will take care
of the unpaid RSP Insure installments.
power of Securities Trading and Portfolio Allocation to invest in a portfolio of stocks
created by the Reliance Securities Research Team.
The Reliance Securities Research Team will come out with a carefully selected basket of
stocks with the objective of generating returns above the benchmark over a specific
investment horizon.
Investor gets an add-on benefit of complementary Life insurance cover to take care of
pending RSP-Insure Installments in case of untimely demise of Investor.
The Reliance Securities Research Team will conduct a periodic review of the portfolio and
if required churn the portfolio. At such times the customers who have invested in the R-
Model Portfolio may choose to align their portfolio as per the revised portfolio.

DERIVATIVES
The derivative segment is a market that gives you an opportunity to earn greater profits by
paying a nominal amount of margin. Over past few years, Popularity and Dealings in
Future & Options segment has grown incredibly. Future contracts are available on
Equities, Indices, Currency and Commodities.
You may be a new or a seasoned investor, our derivatives product offering will suite you
the best. Our Strong research supports on derivatives segment, will always help you make
appropriate decisions

MUTUAL FUNDS
We believe that mutual funds are the best investment instruments for your long term
wealth creation.
What is a Mutual Fund?
A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. A Mutual Fund is the most suitable investment for the common
man as it offers an opportunity to invest in a diversified, professionally managed basket of
securities at a relatively low cost.

28
Why invest in Mutual Funds?
Reduces your Risks: Mutual Funds diversify your portfolio by investing in various
securities & thus minimizes the risk.
Liquidity: Mutual Funds can be bought and sold on any dealing day as the issuer is bound
by their agreement to buy it back from you at the day's prevailing price no matter how
large the number of units you hold.
Affordability - The minimum investment in mutual funds starts from Rs 1,000 or Rs.500/-.
A Mutual Fund allows even a small investor to take the benefit of its investment strategy.
Low Costs - Mutual Funds are a relatively less expensive way to invest because the
benefits of scale, the brokerage, custodial and other fees translate into lower costs for
investors.
Regulated for Investor Protection - All Mutual Funds in India are registered with the
regulator of the Indian securities industry - the Securities and Exchange Board of India
Transparency - The investor gets regular information on the value of his investment along
with the fund manager's investment strategy and outlook.

Register for ASBA

ASBA Facility
ASBA means Application Supported by Blocked Amount. ASBA is an application
containing an authorization to block the application money in the bank account, for
subscribing to an issue. If an investor is applying through ASBA, his application money
shall be debited from the bank account only if his/her application is selected for allotment
after the basis of allotment is finalized, or the issue is withdrawn/failed.
Advantage to an investor while applying through ASBA vis--vis applying through an
application with a cheque
Applying through ASBA facility has the following advantages:
1. The investor need not pay the application money by cheque rather the investor submits
ASBA which accompanies an authorization to block the bank account to the extent of
the application money.
2. The investor does not have to bother about refunds, as in ASBA only that much money
to the extent required for allotment of securities,is taken from the bank account only
when his application is selected for allotment after the basis of allotment is finalized.

29
3. The investor continues to earn interest on the application money as the same remains in
the bank account, which is not the case in other modes of payment.

PORTFOLIO INVESTMENT SCHEME

Portfolio Investment Scheme (PINS) allows NRIs to undertake delivery based trading in
shares of Indian companies (as governed by RBI) in the secondary market. The investment
can be made under repatriation or non repatriation basis in terms of shares purchased or
sold through Reliance Securities on NSE/BSE. A PINS a/c is required for routing the
transaction of any investments which will happen through the Non Resident External
(NRE) or Non Resident Ordinary (NRO) savings account. This will be available with the
same banker where the NRE or NRO bank account lies. Reliance Securities has an
exclusive tie-up with Yes Bank & Axis Bank. NRI customers can select any bank of their
choice to open bank accounts. For share trading with Reliance Securities you would
require:

NRI Trading Account (for Delivery trading on BSE/NSE/MFSS/BSE STAR for Mutual
Funds)
NRI Demat Account (for Demat Holdings purchased and sold)

NRE PINS linked Bank account with any one (Yes Bank or Axis Bank) for investing in
Equity/Mutual Fund segment

R Mobile Xpress
R Mobile Xpress is a smart mobile trading application that allows you to be in
touch with market anytime and anywhere during market hours. Just subscribe for the plan
of your choice and enjoy trading at your finger tips.
Features of RMobile Xpress
Place Orders anytime from anywhere
Access Streaming Market Watch
Get Intraday Charts
View Order Book, Trade Book, Trading Limits & Holdings, Quotes, Market Depth
Check status of orders & trade reports
View your day's / net position

30
How to Activate RMobile Xpress
1 Login to New InstaPlus >> Popup for R Mobile Xpress
2 Select the desired subscription plan, provide Mobile no and chose your handset device &
submit
3 An SMS will be sent with the Download URL; after downloading, register* your device
with us by logging in once
* Please note that the activation will take one working day.
R Mobile Xpress Subscription Charges
Duration Charges
365 Days Rs 450 + Service Tax
30 Days Rs 50 + Service Tax

Once you download and register the RMobile Xpress application, your ledger will be
debited with the subscription charges. The charges are applicable per device. FAQs List
of Handsets
Disclaimer: While using Wireless technology for trading in securities the customer needs
to make himself conversant with the attendant risks associated with such technology.
Some of the perceived risks are given below. The risks mentioned below are only
illustrative and not exhaustive. A mobile device enabled, internet-based deal execution
trading system is prone to failure of hardware, software, and internet connectivity.
All features of an internet trading systems may not be available in STWT, since enabling
of certain features may be dependent on the technology and embedded software adopted
by the manufacturer of handheld device, routing mechanism of the internet service
provider and configuration thereof. Further, the strength of wireless signal may vary from
place to place and there could be wireless connectivity issues while the device/client in
motion, which in turn may affect the speed of execution of transactions.
Further, wireless networks and handheld devices are equally vulnerable to the same threats
as conventional wired networks, such as but not limited to unauthorized (i) access by
intruders to the data /information of the client and his trades executed, (ii) identity theft,
(iii) privacy violations, (iv) planting of stealth software and viruses, (v) disablement or

31
distortion of trade related operations (vi) interception of the transmission of encrypted
data/message during execution of trades, etc.
It may also be noted the risks disclosed above are concurrent and in addition to the risks
associated with internet trading that has been informed to the clients through the Account
Opening Form and elsewhere in this website.
Trading Member / Stock Exchange(s) / Securities Exchange Board of India (SEBI) cannot
be held responsible for failures, distortions or delays while trading via STWT software.
End users should always be ready / prepared to utilize an alternative system to trade in
case of any unexpected failures.

Trade with Us
Online Trading Platform
We have always believed in offering the best to our customers. Be it Research, Trading
platforms, Relationship Managers, Our Customer Service we offer the best.
Online Service offers
Both browser based and desktop based trading platforms based on your requirements
Integrated market watch for NSE / BSE and Derivatives (NSE)
Real time streaming quotes and Charting facility with host of indicators
Live market research recommendations to take informed decisions
Apply in IPO and Mutual Funds investments in just a click of a button
Invest in ETFs with convenience
Integrated Limits for seamless order execution
After Market Orders invest round the clock
Highest security with our security token you can be relieved of online investing

RSP Insure Plan Product Information

32
RSP Insure is a Dual Advantage product for investors
Investor is able to reap the benefits of equity investments by investing regularly through
Regular Stock Purchase.
Investor gets an add-on benefit of complementary Life insurance cover to take care of
pending RSP-Insure Installments in case of untimely demise of Investor.
Investment through RSP Insure can be done in selected stocks, ETFs & Mutual fund
schemes (listed on exchange platform) specified by Reliance Securities Limited.
The Insurance cover is provided under a Group Term Insurance to individual investors
opting for RSP Insure. In the unfortunate event of demise, insurance cover will take care
of the unpaid RSP Insure installments.

Benefits of RSP Insure Plan

No need to track the market regularly i.e., once an RSP Insure is placed, the selected
stock(s)/ETF/MF are purchased on your behalf as per your instruction.
Helps bring down the average cost of investment. Accumulates wealth by investing small
amount regularly.
Eliminates the risk of timing the market & Reduces the risk of market volatility.
It provides Life Insurance Cover that helps the investors family to deal with the financial
crisis and stay ahead of uncertainties of life by ensuring that the insurance cover takes care
of the unpaid pending investment orders.

Who can avail of this facility?

All RSLs clients (excluding NRI) upto 50 years of age (based on next birthday) can
subscribe for RSP Insure.

How to avail RSP Insure facility?

You can give a request in physical or place the request online by logging in to your
account.
For more details on RSP Insure Plan, Please login to your RSL trading account & read the
RSP Insure Plan FAQ.

33
Why invest in Mutual Funds?
Reduces your Risks: Mutual Funds diversify your portfolio by investing in various
securities & thus minimizes the risk.
Liquidity: Mutual Funds can be bought and sold on any dealing day as the issuer is bound
by their agreement to buy it back from you at the day's prevailing price no matter how
large the number of units you hold.
Affordability - The minimum investment in mutual funds starts from Rs 1,000 or Rs.500/-.
A Mutual Fund allows even a small investor to take the benefit of its investment strategy.
Low Costs - Mutual Funds are a relatively less expensive way to invest because the
benefits of scale, the brokerage, custodial and other fees translate into lower costs for
investors.
investments which will happen through the Non Resident External (NRE) or Non Resident
Ordinary (NRO) savings account. This will be available with the same banker where the
NRE or NRO bank account lies. Reliance Securities has an exclusive tie-up with Yes Bank
& Axis Bank. NRI customers can select any bank of their choice to open bank accounts.
For share trading with Reliance Securities you would require:

NRI Trading Account (for Delivery trading on BSE/NSE/MFSS/BSE STAR for Mutual
Funds)
NRI Demat Account (for Demat Holdings purchased and sold)

34
 NRE PINS linked Bank account with any one (Yes Bank or Axis Bank) for
investing in Equity/Mutual Fund segment

Account Remarks Equity Futures &IPO Mutual Mutual

Type Investments Options Funds Funds
through Investments (Offline) &through
Secondary through ETF Exchange*
Market Secondary through
(BSE/NSE) Market Exchange

associated with internet trading the Account Opening Form and elsewhere in this website.
Trading Member / Stock Exchange(s) / Securities Exchange Board of India (SEBI) cannot
be held responsible for failures, distortions or delays while trading via STWT software.
End users should always be ready / prepared to utilize an alternative system to trade in
case of any unexpected failures.

Trade with Us
Online Trading Platform
We have always believed in offering the best to our customers. Be it Research, Trading
platforms, Relationship Managers, Our Customer Service we offer the best.
Online Service offers
Both browser based and desktop based trading platforms based on your requirements
Integrated market watch for NSE / BSE and Derivatives (NSE)
Real time streaming quotes and Charting facility with host of indicators
Live market research recommendations to take informed decisions
Apply in IPO and Mutual Funds investments in just a click of a button
Invest in ETFs with convenience
Integrated Limits for seamless order execution
After Market Orders invest round the clock
Highest security with our security token you can be relieved of online investing

35
Partner Network
You can also get registered through our wide network of Business partners all over India
and get the same products and services as we provide to our branch clients. If you are
registered through Business Partners, then you can trade Online OR through dealing desk
of Business Partner OR through Call and Trade desk or you may contact us

"Being an informed participant is no longer an option in today's world of investing;

it has become imperative. Relevant and applicable knowledge gives you an edge in today's
stock markets and increases the chance of success." We have a team called RGURUKOOL
who dedicatedly looks at investor awareness. We offer classroom programs at every
proficiency level - from first-time investors to those who wish to master their trading
skills.
Reliance Securities would like to extend services of R Gurukool to corporate who
believe in empowering their people to gain Financial Freedom.
The R Gurukool workshops are structured on the Theme of Sharing Knowledge
About Money Gain Financial Freedom. This will include a detailed training program
with Training handouts, Assessments & Certification process.

36
Vision & Mission

To share Knowledge about Financial Markets with All and thus help them to be a part of
Inclusive Growth of Indian Economic Boom.

These are products that are developed over years of practice and research.
The modules are designed in such a approach which helps participants at all levels i.e.
amateur to pro.
At RGurukool our constant endevour is to help our clients minimize loss p all take well
calculated and well-informed risks for your money.
Case Study based understanding of live markets
Able to read & analyze Economic Times & Research reports
Takes you from Theoretical Knowledge to everyday practicality
Workbooks for Training
CDs containing valuable content
Certification process
Understanding Investing / Trading in Equity Market

37
LITERATURE REVIEW
This section reviews the relevant literature in order to demonstrate gaps in available
information on franchising rural private practitioners, thereby creating a rationale for this
study. The section begins with a presentation of basic background information on rural
private practitioners in India and their defining characteristics. Information on outcomes of
the proposed study, such as different measures of quality, is then presented in order to 4
identify the appropriate variables to measure. Finally, background information regarding
the study setting is presented.
The evidence from a wide range of studies is thus quite compelling. The rural private
practitioner provides more care, more often, and to more people than is readily
acknowledged. His role in curative services is undeniable, and yet very little is known
about his abilities, the appropriateness of the treatment he provides, or the opportunity of
improving his treatment practices as well as gaining his actual support for public health
programs. Virtually all government documents and most studies of the health system
ignore this vital source of healthcare in rural India and thereby lose the opportunity to
understand, use, and upgrade this vast resource of potential allies in the major
responsibility of public healthcare that the government has to bear. We must first
understand who this rural practitioner is, what his qualifications are and why people
choose to consult him so widely. From this we can develop a comprehensive approach to
improve his practice, and effectively integrate this self-financing worker into the overall
strategy of health care for the entire Indian population. (Rohde & Viswanathan)
1. Health Systems FrameworkPublic Sector
Since Independence, India has sought to develop a healthcare system for all. However, the
historic urban-rural bias continues to persist until today. The public health care system that
currently exists in rural India, where 75% of the population lives is largely dysfunctional.
(Peters, et al, 2002) The majority of public spending on health has been spread too thin to
be effective. Although the public delivery infrastructure and staff are enormous, they have
been under-funded. (Peters, et al, 2002)
Total Indian government spending on health, as a percentage of gross domestic product
(GDP), is among the lowest of any country in the world, at approximately one percent of
GDP. (Peters, et al, 2002) Government primary health care (PHC) resources in the form of
manpower and drugs and supplies are scarce, and as a result, quality suffers. Due to this

38
poor quality as well as for reasons of poor access, patients avoid government health
centers, and often resort to the private sector, or refer themselves to government hospitals
at the district headquarters, where the perceived quality of care is higher. (Deolalikar and
Vashishtha, 1990). This current pattern of care seeking is inefficient as it increases cost by
directly utilizing higher levels of care for PHC. Whatever little the government spends on
primary health care is being wasted due to improper planning, financing and
organization of the health care delivery system. (Dug gal, 2000)
The rural health care system is a four-tiered network consisting of facilities providing
primary health care that are linked to hospitals providing secondary and tertiary care.
The primary health care system is remarkably similar throughout the country and is
characterized by district and Taluka hospitals at the top, serving two million people and
half a million people respectively, one community health center (CHC) per 100,0005
population, one primary health center (PHC) per 30,000 population, and one sub-center
per 5,000 population. (World Bank, 1995; Chatterjee, 1997) The sub-centers mainly
provide reproductive and child health services and are managed by auxiliary nurses and
midwives (ANM). The primary and community health centers provide a combination of
inpatient and outpatient care and are staffed by medical doctors and paramedical staff
(nurses and physician attendants).
Trained doctors typically refuse to live in rural areas due to the lack of: educational
opportunities for their children, transport, and recreational facilities. In addition, drugs and
supplies in the government PHCs are often lacking. Several studies (Department of
International Health, 1976; Taylor, 1983) showed that the coverage of PHCs was
essentially limited to people living within a radius of about two miles. The government of
India tried to address these problems by launching the community health volunteer scheme
in 1977. However, these health workers could not meet the needs of rural populations that
had increasingly begun to demand proper medical care characterized by access to
doctors and western medicines. Consequently, unqualified privateproviders found a
niche market and began to provide these services demanded by therural population.
(Prakasamma, 1993)
2. Private Sector
India has the largest private health sector in the world with over one million qualified
doctors of various systems of medicine (CBHI in Peters, 2002) and approximately 1.25
million unqualified rural medical practitioners. (Rohde and Viswanathan, 1995)

39
Available evidence suggests that private providers are a major source of care in rural areas
of India. Surveys of health seeking behavior in India indicate that the poor increasingly
prefer and use private providers of healthcare, as opposed to public providers. (Bennett,
1997) This preference is largely due to reasons of access and perceived quality-- high of
private providers, low of primary health centers (PHCs), in spite of the fact that the
services of public providers are free. Overall, high demand for unqualified private
providers in rural India is attributable to a complex interaction of factors such as lower
cost, accessibility, and the ability of these providers to combine traditional and allopathic
medical systems to meet client demand/perceptions of quality care. (Khare, 1996).
The growth of informal private health providers in India, especially in rural areas is
attributable to a complex set of factors such as the lack of alternative and affordable health
services and the popularity of the care that they provide. Compared to their urban
counterparts, rural populations in India have very limited choice in terms of health
services. As the government health system in India is beset by problems of physical
distance, long waiting times, unavailability of doctors, the rural private practitioner is by
default, the de facto primary care provider. Unqualified private health providers are the
primary sources of initial ambulatory care for the rural poor in India. In fact, they are often
the first point of contact that the poor have with the health system. In four studies, rural
private providers were found to be the mainstay of rural medical care, consulted first (and
exclusively in most cases) for 60-80% of illness, especially for women and 6 children.
(Rohde & Viswanathan) The existing network of rural practitioners is the de facto primary
health care system of rural India. (Rohde & Viswanathan).
The private sector poses both threats and opportunities for provision of health care. The
existing poor quality of private providers adds to the financial burden of already poor
households. Because there is often a delay in correct diagnosis after help seeking and
initial non-specific or incorrect treatment, patients often shop for treatment, sometimes
visiting two or more providers in search of a cure. These additional provider visits add
unnecessary costs to the diagnosis and treatment of common diseases. Therefore, the
current pattern of poor quality care in the private sector is inefficient. Because private
providers often do not provide correct diagnosis and treatment of common illness, many
unnecessary consultations occur and many unnecessary drugs are prescribed before correct
case-management is provided, if at all. The burden of unnecessary expenses falls
disproportionately upon the rural poor.

40
Therefore, although the government spends very little on healthcare, overall health
spending in India is quite substantial at approximately 5.4 percent of gross domestic
product (GDP) as over 80 percent of all health spending in India occurs in the private
sector. (Peters, 2002) As most of this private money is inefficiently spent, it could be
captured and redirected to provide more effective health care for the rural poor.
Private providers have a comparative advantage because they are close to the community,
both geographically, and socially. Private providers are also trusted by the community, so
collaborating with them presents a unique opportunity to increase patient acceptance of
care, such as family planning and reproductive health services. Past research has shown
that clinic franchising programs that encourage providers to form ties with their local
communities and promote family planning among existing clients may have better
outcomes. (Field Briefings 1992 and Foreit 1998)
Private providers that have been trained can also be useful agents of change in the
community, for example to improve the status of women. The private practitioner can
empower local village women by providing health education to patients regarding disease
prevention and health promotion behaviors. In addition, due to their current work, rural
private practitioners possess the basic skills required to learn how to counsel and provide
family planning services (as opposed to lay community volunteers who do not have
experience in providing healthcare). Another strength of these providers is their
responsiveness to client demands. For example, unqualified private providers understand
the medical expectations of patients in India, which typically reflects a combination of
traditional and allopathic medicine. (Nichter, 1980; Khare, 1996; Lambert, 1996)
Consequently, client satisfaction is typically high. However, the responsiveness to client
demands may also prove to be a weakness in that it may contribute to poor technical
quality of care.
The major weakness of unqualified private providers is their poor technical quality of care.
Because most of the private providers that are consulted in the rural areas are not formally
trained or qualified, and due to the fact that they often respond directly to patient 7
demand, the treatment that they provide results in quick relief of symptoms, is usually
temporary, and does not adequately treat the existing illness. Sometimes the treatment may
even pose harm. Private providers often needlessly administer intravenous lines and
misuse antibiotics (either by overuse or incomplete treatment) resulting in drug-resistance
and other complications adding unnecessary costs to the health system. Good technical

41
quality of care is closely related to health outcomes. Therefore, if unqualified private
providers are to be involved in helping India meet its family planning and reproductive
health goals, their technical quality of care must be improved.
NGO or governmental collaboration with informal private providers has the potential to
improve access and quality of care, and lead to better health outcomes. Such collaboration
is more likely to improve the technical quality of care; however, nontechnical aspects of
service delivery that can be measured by client satisfaction and are likely to improve as
well. In sum, collaboration with private providers should prove to bea win-win situation
for all by leveraging existing human capital in the community, mobilizing them to provide
quality healthcare, and to act as a system of triage, appropriately referring cases to higher
levels of care in the formal health system.
3. Quality
Quality of health care consists of the proper performance (according to standards) of
interventions that are known to be safe, that are affordable to the society in question, and
that have the ability to produce an impact on mortality, morbidity, disability, and
malnutrition. (WHO definition; Roemer, 1988)
Quality is composed of two main components: the actual technical quality delivered by the
health provider and perception of quality by the client, or client satisfaction. Each of these
two measures of quality will be measured as outcomes in the proposed study. As such,
background information is presented below in order to help in defining the outcome
variables of interest for the proposed study.
3a. Technical Quality
In order to assess technical competence of providers, direct observation with simulated
clients assessing consultations according to a checklist can be used. Client exit interviews
can also be used to access provider performance according to standards.
Studies comparing observations of family planning and health consultations with client
exit interviews have found that clients accurately report interpersonal relations as well as
concrete actions by providers, such as displaying a flip chart or weighing a child. In a
comparison of three monitoring methods in Malawi, observations proved to be more
reliable than interviewing providers, and observations could collect information on a wider
range of activities than client interviews. (Fraco, et al., 1996)
One of the most recent studies on technical quality of unqualified private practitioners was
a study that examined unqualified private practitioners technical quality of care for

42
ARI, and its determinants. In a sample of 40 unqualified private providers in a rural area
of India, this study found private providers to have poor technical quality of care.
(Chakra borty, 1998)
Several medical anthropological studies in India have shown that one of the main
expectations that patients have regarding quality of care is the ability of the doctor to
combine Western and indigenous/Indian systems of medicine. For example, there is a big
demand on the part of patients for injections and other allopathic treatments.
However, patients also want to be told what food to avoid or to include in their diet.
Food restrictions during illness conform to traditional Indian medical systems, such as
Ayurveda. In addition, waiting time and good interpersonal communication are also
considered to be signs of good quality care. (Nichter, 1980; Khare, 1996; Lambert, 1996;
Rohde and Viswanathan, 1995)
The Janine program in India was included as part of a study of four reproductive health
franchises in three countries. (Montagu, 2002c) The study measured provider technical
quality of care through the use of one clinical vignette among 80 Surya providers and 77
Title providers. Provider responses were scored using the WHO guidelines for provision
of family planning services (WHO, 1999). Client exit interviews were conducted and
community representatives who were married women and who were not necessarily
clients of the franchise were also interviewed. (Montagu, 2002c)
This study showed that in no franchise was there any correlation between vignette scoring
of provider skill and client ranking of provider skill, providing evidence for the theory that
clients are poor judges of true provider skill/technical quality of services that they receive.
Both clients and community representative rated technical quality/skill as the most
important attribute of a provider (34 percent of Titli center clients). However, when asked
why they had chosen the current provider, the majority of clients stated
accessibility/proximity (76 percent for Titli center clients) The other most common
reasons were: know provider personally (42 percent), cost of service (40 percent), and
high quality/reputation (32 percent).
It is interesting to note that there was no correlation between client reporting that skill
was the most important attribute of a reproductive health provider and the clients
reporting of why they chose their current provider in any of the four reproductive health
franchises studied. Montagu hypothesizes that in the face of limited available information
with which to judge provider skill, prior knowledge and personal recommendations are the

43
only available proxies for technical quality. In addition, when adjusted for the type of
service received, either clinical (IUD, injectable, Norplant, sterilization,
abortion/menstrual) or non-clinical (oral contraceptives, condoms, natural family
planning), the odds of a client saying that quality was one of the reasons they had chosen
that provider increased more than twofold for those receiving clinical services in
India. (Montagu, PAA, 2002)
This study found that assuring technical quality is the most important area of franchise
activity, with the greatest potential to provide value to clients. Montagu asserts that if
social franchises are able to improve and control the technical quality of providers and to
communicate this quality improvement and assurance of skill level to all clients and
potential clients, clients demand for quality providers will increase, and they will be able
to access quality care at a lower total cost (due to a decrease in transaction costs of seeking
care).
The fact that this study evaluated the technical quality of care of the RPPs trained and
franchised by the Janine project should have made it useful for evaluating the technical
quality of family planning and reproductive health services provided by franchised RPPs.
However, the method of data collection used by this study, a self-administered
questionnaire regarding a clinical vignette, has not been validated. This creates the
possibility of bias. Although the validity of clinical vignettes as a tool to measure the
quality of care delivered by physicians has been established, little is known about the
validity of clinical vignettes to evaluate informal, untrained providers. (Peabody, et al,
2000) Past research in decision-making has shown that intended actions expressed in
surveys may not reflect the actual human behavior that is triggered in a real situation.
Many human actions are often the result of multiple external factors present at the moment
of the actual decision.
This study used the same vignette and questionnaire for both the trained physicians and
informal, untrained RPPs. The validity of the clinical vignette that was used is also
questionable due to the fact that providers were instructed to answer the questions in
writing, and some of the RPPs are illiterate. As such, the information from this study is not
a good measure of the actual technical quality of care of Franchised RPPs for family
planning and reproductive health services.

44
In addition, although this study ascertained technical quality of the RPPs that had been
trained and franchised by Janine, the information is not very useful there was no
comparison group. It is not possible to collect data on the quality of care before the
Janine franchising program for a pre-post study design as the program is already ongoing.
However, the quality of care of Janine trained and franchised RPPs can be compared to the
quality of care of RPPs that have not been trained and franchised. In addition, as the
quality of care of the physicians in the government primary health centers is reported to be
of low quality, the quality of care of the Janani trained and franchised RPPs will be
compared to this group in this proposed study.

3b. Client Satisfaction

Client satisfaction may be a good predictor of compliance with care regimens and, for
family planning, continuation of method use. (Mestrovic, 1991) A growing body of
research has found that in both developed and developing countries, clients share seven
major concerns in judging quality of care. (Kols, 1998) These are:
1. Respect. Clients want to be treated with respect and friendliness. Clients interpret
courtesy, confidentiality, and privacy as signs that providers are treating them as equals.
2. Understanding. Clients value individualized service and prefer providers who make the
effort to understand their particular situation and needs. They want providers to listen to
them and to explain options in terms that they understand.
3. Complete and accurate information. Clients value information. They worry that family
planning providers are not telling them all the facts, especially negative information about
contraceptive methods.
4. Technical competence. Clients can and do judge the technical competence of the
services they receive, although they may not use the same criteria as providers and they
may not be technically accurate. Ultimately, clients judge technical competence by
whether their needs are met or their problems are resolved.
5. Access. Family planning clients want ready access to contraceptive services and
supplies. A convenient location and prompt service are important, but access also means
that services are reliable, affordable, and without other barriers.
6. Fairness. Clients want providers to offer thorough explanations and examinations to
everyone alike. They complain that providers offer preferential treatment to friends,

45
relatives, those from a higher social class or certain ethnic group, those with political
connections, or those who offer bribes.
7. Results. Clients come for services for a specific purpose. They are dissatisfied when
told to come back another day or to go to a different facility, or when providers dismiss
their complaints as unimportant.
Clients' satisfaction is an important indicator of service quality. Client satisfaction is
difficult to assess, however, when many clients express satisfaction regardless of technical
quality. (Scott and Smith, 1994) Evidence on the association between client exit interviews
regarding provider skill and technical quality evaluated from expert observation or an
equivalent gold standard is mixed, but suggests that there would be little correlation.
(Peabody 2000, Barnhart 1999). Thus, client satisfaction may not be
a good indicator of technical quality of care, when clients have low expectations or
inaccurate perceptions of quality.
Most clients lack the knowledge to judge technical quality in health care and family
planning. Client satisfaction depends on perceived technical quality. When clients'
perceptions of quality are inaccurate, their expectations can influence providers' behavior
and actually lower the quality of care. Clients sometimes want inappropriate tests,
procedures, or treatments in the mistaken belief that they constitute good quality.
(Bennett, et al., 1994) In response to such demands, informal private providers often
prescribe unnecessary medicines, including unnecessary injections to ill patients.
Providers often fear that clients will switch to other providers if they do not receive the
care they expect. This self-perpetuating phenomenon becomes very dangerous as the poor
quality care demanded stimulates more poor quality of care delivered.
Client satisfaction depends not only on service quality but also on clients' expectations.
Clients are satisfied when services meet or exceed their expectations. (Thompson &
Sunol, 1995) If clients' expectations are low or if they have limited access to any services,
they may be satisfied with relatively poor services. Health care clients often expect poor-
quality care, accept it without complaint, and even express satisfaction when surveyed.
(Schuler & Hossain, 1998) Client satisfaction, as expressed in interviews or surveys, does
not necessarily mean that quality is good; it may mean that expectations are low.
Most efforts to improve quality to date have focused on service delivery and other supply-
side factors. However, it is equally important to create a demand for good-quality family
planning providers and services by redefining perceptions of good quality and developing

46
expectations among clients. As such, a public that is well educated regarding what
constitutes good quality care will increase demand for such care and thus contribute to an
overall increase in quality of care. The Institute of Medicines recent Quality
Chasm report that calls for a redesign of the U.S. health care system stresses that patients
experiences should be the fundamental source of the definition of quality, and the need for
health care to be patient-centered. Such care should be responsive to individual patients
choices and preferences, provide patients with the necessary information and the
opportunity to exercise the degree of control they choose over the health decisions that
affect them, provide patients with access to clinical knowledge, and foster an environment
of open communication between patients and providers. (Berwick,
2002)
The Bruce-Jain framework, for measuring and assessing quality from the clients
perspective, includes six elements of quality of care in family planning service delivery
(Bruce, 1990):
Choice of methods,
Information given to clients,
Technical competence,
Interpersonal relations,
Mechanisms to encourage continuity of use, and
Appropriate constellation of services
For measuring sustainability of quality in family planning, the drop-out ratio is a good
indicator because it takes account of clients' reasons for stopping a method. The drop-out
ratio is the percentage of new users who are still at risk of pregnancy, do not want to
become pregnant, and have quit using any family planning method. Thus it excludes
clients whose reasons for discontinuation do not reflect on service qualityfor example,
women past menopause, who are no longer sexually active, whose pregnancies were
planned, or who switched methods. (Bulatao, 1995)
To gauge clients' satisfaction, exit interviews, focus-group discussions, satisfaction
surveys, and suggestion boxes can be used. Pathania hypothesizes that the relative
importance of the various elements of quality perceptions from the clients perspective
varies with the SES of the patient. (1998)
Poor quality care adds unnecessary costs to the health care system by wasting resources
during avoidable repeat visits to health care providers. Such avoidable repeat visits are

47
costly both for programs and for clients, who may have to take time off from work and
pay for transportation. (Ogunbekun, et al., 1996) By preventing injuries, infections, and
unwanted pregnancies, good-quality care eliminates costly follow-ups to treat clients who
have been harmed. As such, improvements in quality of care may also be cost-saving.
In an ongoing four-year project, the Clinic Franchising Project (CFP), the impact of
franchising on both the service provider and the client was evaluated among four family
planning and reproductive health franchises in three countries, Ethiopia, Pakistan, and
India. For the service provider, the impact on client volumes, staffing levels, and range of
services was examined. For the client, the impact of franchising on client satisfaction and
perception of affordability was examined. Franchising was shown to have a significant
positive association on the number of family planning clients attending a health facility,
the number of staff working at the health facility, and the number of family planning
brands available. Franchising was also shown to have a positive impact on client
satisfaction, which was measured by the odds of clients attending franchised health
facilities reporting an intention to return to the same health establishment and the odds of
clients attending for family planning than for general health purposes. The study came to
the conclusion that franchising for contraceptive service delivery offers apparent
benefits for both the provider and the client and the opportunity to expand access to
quality reproductive health services among poorer subgroups.
4. Rural Private Practitioner
a. Definition
There are essentially two types of rural private practitionersthose who have received
formal medical training in any type of medicine (Allopath, Ayurveda, Homeopathy,
Siddha, or Omani) from a recognized college and those who have no formal training.
(Rohde and Viswanathan, 1995, p.44)
Private providers are typically defined as individuals providing health care that operate
outside the direct control of the government. Private providers in India are an extremely
heterogeneous and complex group characterized by various types of providers and types of
health care systems. The two main health systems operating in India are modern allopath
and the Indian Systems of Medicine (ISM); under which systems such as
Ayurveda, umami, siddha are categorized; and homeopathy.
Various terms have been used to describe private health providers who have not been
formally trained in any system of medicine. The general term indigenous medical

48
practitioner has often been applied to such private health providers in India. The
connotation of this term is that such practitioners employ traditional cultural approaches,
herbal medicine, or spiritual means for diagnosis and treatment. In the rural areas, the term
rural private practitioner has been used to describe providers with no formal training
because past research has shown that most of the qualified private practitioners practice in
urban areas while most unqualified private practitioners practice in rural areas.
Traditional birth attendants, or dais; faith healers; and witch doctors are not included in
this definition of rural private practitioner (RPP) because rural populations usually consult
these providers for specific ailments, viewing them as specialists, while rural villagers
consider RPPs as general practitioners and consult them most frequently.
(Rohde & Viswanathan, 1995)
Private providers are typically defined as individuals providing health care that operate
outside the direct control of the government. Private providers in India are an extremely
heterogeneous and complex group characterized by various types of providers and types of
health care systems. The two main health systems operating in India are modern allopath
and the traditional Indian Systems of Medicine (ISM) under which systems such as
Ayurveda, umami, siddha, and homeopathy are categorized.
With lack of any regulation of medical practice, the majority of rural private practitioners
with formal training also engage in medical practice that is outside their field of formal
training. The most common example of this is ISM trained doctors who engage in the
practice of allopath. In fact, it is an open secret that a non-allopathic qualification is a
means to setting up a more profitable practice in modern medicine. (Dugan, 2000) For the
purpose of this study, term rural private practitioner (RPP) will be used to connote both the
unqualified private providers in the rural areas, as well as private providers in the rural
areas who have been formally trained in ISM, as most of the formally trained ISM
practitioners engage in whole scale cross-practice between allopath and ISM. The practice
that is without formal training equates to the practice of an unqualified practitioner.
(Rohde and Viswanathan, 1995). In addition, in a 2002 study that surveyed 82 rural private
providers trained and franchised by Janine, while the majority were unqualified, about 9%
were trained and qualified in ISMAyurveda,
Homeopathic, or umami medicine, with corresponding degrees/diplomas-- BUMS,
BAMS, and DHMS. (CORT, 2002) The chart on the next page describes the various types
of rural private providers.

49
b. Characteristics
There have been a few studies that have looked at the characteristics of rural private
practitioners in India. The first all-India study on rural private practitioners was conducted
by Rohde and Viswanathan in 1988 and focused exclusively on childhood diarrhea in four
geographically diverse states in India, Uttar Pradesh, West Bengal,
Gujarat, and Karnataka. The studys main objective was to document rural mothers and
private providers knowledge, attitudes, and practices (KAP) for diarrhea case
management among children under five, and administered a KAP survey to approximately
10,000 mothers of children under five and 266 rural private practitioners.
Due to its large size and geographic representation, this study is the most comprehensive
source of information on the characteristics of unqualified private providers in India.
The study found that 83 percent of rural families sought help from private practitioners,
and only 7.5 percent from government health centers. The majority (62%) of private
providers had no medical qualifications and 61 percent practiced more than one type of
medicinetypically a blend of allopathic and traditional/indigenous medicine.
Rohde and Viswanathan also conducted an extensive review of the available literature on
rural private practitioners. This review identified two other studies on rural private
practitioners. One study, which was sponsored by the Ford Foundation, was conducted in
1991 in three districts, Ganjam (Orissa), Faridabad (Uttar Pradesh), and Tricky (Tamil
Nadu), and sampled 50 rural private practitioners. The second study, which was sponsored
by the Options II project, Washington, D.C., was initially conducted in 1992 with a
follow-up in 1993, and surveyed 488 RPPs in the state of Uttar Pradesh. (Rohde
& Viswanathan, 1995)
This review of private providers highlighted the lack of data on their technical quality of
care, but mentioned that the little information that was available indicated that technical
quality of care was most likely extremely poor. In addition, the review was instrumental in
identifying the factors potentially responsible for poor technical quality of care among
unqualified private providers. For example, the following were identified as factors
affecting technical quality of care: the untrained status of most informal private providers,
the profit motive, and patient/community perceptions.
Reliance Securities Limited is a Reliance Capital company and part of the Reliance Group.
Securities endeavors to change the way investors transact in equities markets and avails
customers with access to Equity, Derivatives, Portfolio Management Services Investment

50
Mutual Funds & IPOs. It also offers secured online share trading platform and investment
secure, cost effective and convenient manner. To enable wider participation, it also proved
of trading offline through variety of means, including Call & Trade, Branch dealing Desk
Mutual Funds & IPOs. It also offers secured online share trading platform and investment
secure, cost effective and convenient manner. To enable wider participation, it also provide
convenience of trading offline through variety of means, including Call & Trade, Branch
its network of affiliates. Reliance Securities has a pan India presence at more than 1,700,
In the last two decades, Practitioners and Academics have focused ever more on how firms
relate to their markets. This has resulted in the emergence of a sub discipline of advertising
referred to as Creative Marketing.
Morgan and Hunt (1994) defined marketing as the customers, suppliers and other
infrastructural partners into a firm's developmental and marketing activities (McKenna
1991; Shani and Chalasani 1991).
Wilson (1995) summarized different relationship variables that affects the relationship of
firm with different stakeholders, those variables are Commitment, Trust, Cooperation,
Mutual Goals, Interdependence and Power, Performance Satisfaction, Structural Bonds,
Comparison Level of Alternatives, Adaptation, Non-retrievable Investments, Shared
Technology, and Social Bonds. Morgan and Hunt (1994), while discussing relationship
variables focused more on commitment and trust as a major variable affecting relationship
between different parties involved in advertising transaction & exchange. The Nordic
School emphasized on marketing as a cross functional process. For maintaining
relationships marketing function should be carried out by all employees and departments,
it is no more concentrated in marketing department as a specialist function.
Gronroos, 1989. International Marketing & Purchasing (IMP) group looks at B2B
markets. In industrial marketing, relationships are built over time with increasing
experience, reduction of uncertainty, greater commitment in each others (Ford, 1980).
Anglo Australian school of thought believes in quality and service of marketing with focus
on delivering customer value. Customer judges the value of the product or service from
benefits perceived from it compared with its cost of ownership. The better value delivered
by the firm, better is the customer relationship (Christopher, 1996). Whatever school you
follow it is the customer retention which is the base of relationship marketing (Rosenberg
& Cazepiel, 1984). Superior value for the company and the customer. It involves
integration of marketing, sales, customer service and supply chain functions of the

51
organization to achieve greater efficiencies and effectiveness in delivering customer value"
(Sheth & Parvatiyar, 2001). Advertising represents the marriage between the customer
orientation and the emerging information technology to produce a memorable relationship
experience to the marketers as well as to the customers (Agrawal, 2003). Advertising can
be considered as a tool for delivering marketing dream to enjoy long term relationship
with customers, especially with the profitable ones (Pearson, 1995). Finally it can be said
that Advertising is not the end, it's a means to ensure long term success of marketing
effort.
The concept of Although McKenna has often been credited with the term Advertising",
but it was Berry who first defined and analyzed in scientific literature. However there was
also a parallel development in industrial marketing which contributed to the development
of RM (Greenrooms, 1990). Industrial marketing has traditionally been seen different from
consumer or service marketing.
Gronroos (1990) points out that some of the tasks other than traditional Advertising
functions are important in industrial selling. These tasks may include repairs, servicing,
maintenance, delivery, product development, installation, training, etc. Performing these
tasks necessitates a close seller buyer connection and often involves partners other than the
seller and the buyer. Consequently, even if the term "relationship marketing" was not used
in industrial marketing, the nature of industrial marketing clearly demonstrates several of
its core characteristics.
Thus it can be concluded that there have been in fact two routes to the present-day The
earlier definition of marketing by American Marketing Association (1985), states that
Marketing is the process of planning and executing the conception, pricing, promotion
and distribution of ideas, goods and services to create exchange and satisfy individual and
organizational objectives. However, this view of marketing was considered outdated, and
its relevance was found only to certain types of firms and markets (Hakansson 1982;
Gummesson, 1987, 1994; Gronroos, 1989). Further, argument was made that this
perspective is overly clinical and based solely on short-term economic transactions
(Moller, 1992). Such criticisms have led to the suggestion that a paradigm shift in
marketing is needed if marketing is going to survive as a discipline (Gronroos, 1995) and
companies must move from short-term transaction-oriented goal to long-term relationship-
building goal (Kotler, 1992). Relationship marketing has been viewed as buyerseller
encounters that accumulate over time with opportunities to transform individual and

52
discrete transactions into relational partnerships (Czepiel, 1990). This view supports the
notion that a relationship exists when an individual exchange is assessed not in isolation,
but as a continuation of past exchanges likely to continue into the future (Wong and Sohal,
2002). Thus it is pertinent to say that RM ensures the continuation of exchange process
between buyer and seller by managing the existing relationship (Levitt, 1986). Nevin
(1995) quotes that relationship marketing has been used to reflect a variety of themes and
perspectives which range from industrial marketing perspective to service marketing
perspective and has been defined in numerous ways by different scholars and practitioners.
Some of the selected definitions are further compiled in Table 1 and analyzed to conclude
a definition of Advertising in current business practices.
Key words that appear in contemporary definition of Advertising are identified as
follows:-
Attracting/getting customers, Retaining customers/loyalty Relational
exchange/mutual/reciprocity Time dimensionextended time horizon; Value creation and
sharing; Personalized marketing process; Structural/social bonds; Asymmetrical marketing
process; Strategic orientation; Input-outcome and ongoing assessment globalization and
technological innovation are creating dynamic network or chain of interconnected players
to bring and deliver value to the end user. The notion that value can be created by
cooperation has led marketers to search for winwin positions as a way to enhance
profitability through collaborative value creation (Anderson, Hakansson, & Johanson,
1994; Kanter, 1994). The idea of value creation and exchange is the foundation stone of
relationship marketing. This view is based on three different assumptions of value
exchange potentialities (Christopher et al., 2002). These value perspectives suggest that
value is created; as an offering and delivered through recurrent transactions within a
supplier-managed relationship; through mutually interactive processes and shared through
negotiated agreement within the life of a relationship and shared in interactions that
emerge from within networks of relationships.
Thus value has been considered to be an important constituent of relationship marketing
and the ability of a company to provide superior value to its customers is Act (also called
Financial Services Modernization Act) in November 1999, there have been few strategic
attempts in consolidating financial and insurance businesses and some of them (i.e. the
Citigroup/Travelers or the General Electric/ Employers Re. mergers) have failed. This,
despite the fact that some of the research papers cited in the attached literature Increasing

53
brand awareness, direct mailing, providing up-to-date interest rates should help to lure
customers. Most insurance firms have hired experienced bankers to create and manage
these banks.
Weber reports that, since the Globalization Act of 1999, a few banks have acquired
insurance firms and then Citigroup split up again. She provides the following reasons for
non-convergence:

Regulation: financial and bank holding companies are federally regulated, insurance
firms are state regulated. GLB requires U.S. jurisdiction to adopt uniform or reciprocal
agent and broker licensing laws by November 2002. Reciprocity has apparently been
approved by most states. But new insurance products need to have state approval before
they are allowed to be marketed, which is a slow process. Will there be federal
chartering of insurance firms in the future?
Technology: banks are able to offer interactive online services, while insurance
products apparently dont lend themselves to it. Also otherwise insurance are slower to
adopt new technology.
Financial reasons: Return on equity for insurers were for 2000 only 7.42 percent while
banks made 12.2 percent. Probably Citigroup spun off Travelers because it did not
make double digit growth, a norm for Citibank.

There are a variety of situations in which the value of a firm must be established
without referring to the market value. One example is the valuation of a closely held
business for the purpose of determining gift and estate taxes or divorce settlements.
Another example includes privately held corporations that need to set an offering price
for their IPOs, or for further venture capital financing. Corporate control transactions
such as management buyouts also require the valuation of equity.

2.1. Alternative valuation frameworks

Reflecting the importance of firm valuation in practice, there is an extensive

practitioner oriented literature that discusses several valuation methods, including the
comparable firms approach, which uses market multiples of a peer group; the
discounted cash flow (DCF) approach; and the asset-based approach. Each of these
methods has its advantages and disadvantages. For example, the comparable firms
approach works best when a highly comparable group is available. While it can reduce

54
the probability of disvaluing a firm relative to others, this approach provides no
safeguard against an entire sector being undervalued or overvalued. The DCF approach
is based on a firmer theoretical footing than any other approach, but in many situations
it is difficult to estimate future cash flows and an appropriate discount rate. The asset-
based approach looks at the underlying value of a company's assets to indicate value.
The asset-based approach is more relevant when a significant portion of the assets can
be liquidated readily at well-determined market prices if so desired. For most IPOs, the
asset-based approach has little relevance, since most of their value comes from growth
opportunities.

Among the alternative valuation approaches, the comparable firms approach is one of
the most frequently cited. The comparable firms approach is typically implemented by
capitalizing the earnings per share (EPS) of the firm under consideration at the average
or median price earnings (P/E) ratio of comparable publicly traded firms. If earnings
forecasts are available, these are commonly used for the comparable. Other market
multiples, such as market-to-book, price-sales, price-operating earnings, enterprise
value-to-sales, and enterprise value-to-operating earnings ratios, are sometimes
employed.

Several academic studies examine the comparable firms approach, mainly using P/E
ratios. Boatman and Baskin (1981) compare the accuracy (measured by absolute values
of prediction errors as a percentage of actual values) of two different types of P/E
models. The first uses a random firm from the same industry, and the second uses the
firm from the same industry with the most similar ten-year average growth rate of
earnings. They find that the accuracy of the latter is greater. Alford (1992) examines the
accuracy of the P/E valuation method when comparable firms are selected on the basis
of industry, firm size, and earnings growth, to see which factor is the most important for
choosing comparable firms. He also investigates the effect of adjusting earnings for
cross-sectional differences in leverage using a sample of Compustat-listed firms.

His findings show that selecting comparable firms by industry, defined by three-digit
SIC codes, is relatively effective. The median absolute prediction error, measured as |
P*-P|/P, where P* is the predicted price and P is the actual price, when comparable
firms are selected on the basis of industry, is 24.5%. The corresponding number is

55
29.4% when all other sample firms (that is, ignoring industry membership) are used as
comparable firms. Alford also finds that a finer classification using size in addition to
industry membership does not improve the accuracy of the P/E valuation method.
Finally, his findings show that adjusting P/E multiples for differences in leverage across
comparable firms decreases accuracy.

2.2. Valuation studies in a non-market setting Valuation studies in non-market settings

include the determination of an offer price in 2 Practitioner-oriented discussions of the
comparable firms approach for valuing a closely held business (such as an IPO) include
Pratt (1989), Joyce and Roosma (1991), and Buck (1990).

Academic studies using comparable firm multiples include Kaplan and Runback
(1995), Berger and Fork (1995), Eberhart (1998), and Gilson, Hotchkiss, and Runback
(1998). Textbook Discussions include Benning and Sarig (1997).

IPOs and corporate transactions such as management buyouts and hostile takeovers. It
is often assumed that insiders of IPOs have better information about the expected value
of their projects than outside investors do. Accordingly, most academic IPO studies
have used signaling models to explain the valuation of IPOs, and the key variable has
always been a signaling variable, such as the ownership retained by insiders, as in
Leland and Pyle (1977). Studies by, among others, Ritter (1984), Kim, Krinsky, and Lee
(1995), Klein (1996), and Van der Got (1997) find that IPOs with a larger fraction of
the equity retained by pressure shareholders have higher market valuations. Another
non-market setting for valuations is leveraged buyouts. Deangelo (1990)

Provides evidence from a large sample of fairness opinions on management buyouts

and a small sample of investment bankers' working papers that indicates that investment
bankers' valuation techniques make extensive use of accounting data. She also shows
that major investment bankers rely heavily on the comparable firms approach. Kaplan
and Runback (1995) examine the DCF approach in the context of highly leveraged
transactions such as management buyouts and recapitalizations. They find that
transaction prices are close to the present value of projected cash flows, although they
are unable to reject the hypothesis that the projections are made to justify the price.
Kaplan and Runback report that a CAPM-based DCF valuation approach has
approximately the same valuation accuracy as a comparable firms valuation approach
56
with earnings before interest, taxes, depreciation, and amortization as the accounting
measure being capitalized. Their sample firms are typically large, mature firms, unlike
our firms going public. Gilson, Hotchkiss, and Runback (1998) also find that, for firms
emerging from bankruptcy, DCF valuations have about the same degree of accuracy as
valuations based upon comparable firm multiples. They show that the economic
interests of various parties in the bankruptcy proceedings affect the cash flow forecasts
that are used.

57
RESEARCH METHODOLOGY

DEFINITION OF RESEARCH
The term research is also used to describe an entire collection of information about a
particular subject. Research is defined as human activity based on intellectual application
in the investigation of matter. The primary purpose for applied research is discovering,
interpreting, and the development of methods and systems for the advancement of
human knowledge on a wide variety of scientific matters of our world and the universe.

TYPES OF RESEARCH
Quantitative research
Qualitative research
Secondary or desk research

NATURE OF DATA
1. PRIMARY DATA:
Primary data are collected with the help of questionnaire filled by the samples units.
2. SECONDARY DATA:
Secondary data can be obtained from two different research strands:
Quantitative: Census, housing, social security as well as electoral statistics and other
related databases.
Qualitative: Semi-structured and structured interviews, focus groups transcripts, field
notes, observation records and other personal, research-related documents.

58
METHODOLOGY OF THE PROPOSED STUDY

Data Type : Primary and Secondary Data

Source of Secondary Data : Research Paper, Books, Internet websites
Source of Primary Data : Personal Contact
Research Tool : Questionnaire
Sample Size : 100
Sample Unit : Investors
Sample selection method : Stratified Random Probability Sample Selection
Method
Survey Area : Moradabad
Survey Duration : 3 4 Weeks
Data Analysis : By Bar Chart

ANALYSIS & INTERPRETATION

Q.1. Are you aware about Reliance Securities?

59
Table No. 1

S. No. Options Percentage

a. Yes 70%
b. No 30%

Graph No. 1

INTERPRETATION:-
As the graph shows that 70% respondents say yes and remaining 30% respondents say no.

Q.2. If yes, have you interested in Reliance Securities?

Table No. 2

60
 S. No. Options Percentage
a. Yes 60%
b. No 40%

Graph No. 2

INTERPRETATION:-
As the graph shows that 60% respondents say yes and remaining 40% respondents say no.

Q.3. If yes, which type of investment?

Table No. 3

S. No. Options Percentage

a. Share 20%

61
 b. Mutual Fund 20%
c. Insurance 40%
d. Gold 10%
e. Others 10%

Graph No. 3

INTERPRETATION:-
As the graph shows that 20% respondents say share, 20% respondents say mutual fund,
40% respondents say insurance, 10% respondents say gold and remaining 10%
respondents say others

Q.4. If no, are you interest to invest in Reliance Securities?

Table No. 4

S. No. Options Percentage

a. Yes 80%
b. No 20%

62
Graph No. 4

INTERPRETATION:-
As the graph shows that 80% respondents say yes and remaining 20% respondents say no.

Q.5. Have you seen the advertisement of Reliance, you like most?

Table No. 5

S. No. Options Percentage

a. Yes 60%
b. No 40%

63
Graph No. 5

INTERPRETATION:-
As the graph shows that 60% respondents say yes and remaining 40% respondents say no.

Q.6. Through which media, you have seen it?

Table No. 6

S. No. Options Percentage

a. TV 40%
b. Newspaper 20%
c. Magazines 20%
d. Others 20%

Graph No. 6

64
INTERPRETATION:-
As the graph shows that 40% respondents say TV, 20% respondents say newspaper, 20%
respondents say magazines and remaining 20% respondents say others.

Q.7. Why do you like the advertisement?

Table No. 7

S. No. Options Percentage

a. Because it has film stars 30%
b. Because of good music 20%
c. It's theme and making is appreciable 30%
d. Any other reason 20%

Graph No. 7

65
INTERPRETATION:-
As the graph shows that 30% respondents say because it has film stars, 20% respondents
say because of good music, 30% respondents say it's theme and making is appreciable and
remaining 20% respondents say any other reason.

Q.8. Do you think that advertisement has forced you to invest in financial products?

Table No. 8

S. No. Options Percentage

a. Yes 60%
b. No 40%

Graph No. 8

66
INTERPRETATION:-
As the graph shows that 60% respondents say yes and remaining 40% respondents say no.

Q.9.Which media is presenting the advertisement more effective for financial schemes?

Table No. 9

S. No. Options Percentage

a. TV 40%
b. Newspaper 30%
c. Magazines 20%
d. Others 10%

Graph No. 9

67
INTERPRETATION:-
As the graph shows that 40% respondents say TV, 30% respondents say newspaper, 30%
respondents say magazines and remaining 10% respondents say others.

Q.10. Do you think that the advertisement is necessary for the sale of financial schemes?

Table No. 10

S. No. Options Percentage

a. Necessary 50%
b. Very necessary 30%
c. Not necessary 20%

Graph No. 10

68
INTERPRETATION:-
As the graph shows that 50% respondents say necessary, 30% respondents say very
necessary and remaining 20% respondents say not necessary.

Q.11.The expenditure incurred an advertisement of financial schemes is such effective that

it adds to profit?

Table No. 11

S. No. Options Percentage

a. Yes 70%
b. No 30%

Graph No. 11

69
INTERPRETATION:-
As the graph shows that 70% respondents say yes and remaining 30% respondents say no.

Q.12. Is advertisement effectiveness is necessary for company?

Table No. 12

S. No. Options Percentage

a. Yes 90%
b. No 10%

Graph No. 12

70
INTERPRETATION:-
As the graph shows that 90% respondents say yes and remaining 10% respondents say no.

Q.13. Is the study of effectiveness would contribute to improvement in present

advertisement?

Table No. 13

S. No. Options Percentage

a. Yes 70%
b. No 30%

Graph No. 13

71
INTERPRETATION:-
As the graph shows that 70% respondents say yes and remaining 30% respondents say no.

Q.14. what do you think that the use of study of effectiveness is for who?

Table No. 14

S. No. Options Percentage

a. For company 50%
b. For employees 30%
c. For customers 10%
d. None of these 10%

Graph No. 14

72
INTERPRETATION:-
As the graph shows that 50% respondents say for company, 30% respondents say for
employees, 10% respondents say for customers and remaining 10% respondents say none
of these.

RESULT & FINDINGS

Mostly the surveyed respondents are aware about Reliance Securities.
Maximum numbers of respondents have an interested in Reliance Securities.
The type of investment which the more numbers of respondents prefer is insurance.
Almost all the surveyed respondents are interest to invest in Reliance Securities.
More numbers of respondents have seen the advertisement of Reliance which they like
most.
More numbers of respondents have seen on TV.
More numbers of respondents like the advertisement because it's theme and making is
appreciable.
More numbers of respondents think that advertisement has forced they to invest in
financial products.
The media is presenting the advertisement more effective for financial schemes is TV.

73
 More numbers of respondents think that the advertisement is necessary for the sale of
financial schemes.
The expenditure incurred an advertisement of financial schemes is such effective that it
adds to profit.
Almost all the surveyed respondents say that advertisement effectiveness is necessary
for company.
Maximum numbers of respondents say that the study of effectiveness would contribute
to improvement in present advertisement.
More numbers of respondents think that the use of study of effectiveness is for the
company.

CONCLUSION

This project was based on study the determining approach for selection initial public offer.
Reliance Securities comes from the house of Reliance Capital, one of Indias leading &
prominent financial houses. Founded in 1986, Reliance Capital has come a long way from
being into steady annuity yielding businesses such as leasing, bill discounting, and inter-
corporate deposits to diversifying its activities in the areas of asset management and
mutual fund; life and general insurance; consumer finance and industrial finance; stock
broking; depository services; private equity and proprietary investments; exchanges, asset
reconstruction; distribution of financial products and other activities in financial services.
Reliance Capital has a net worth of Rs. 7,887 crore (US$ 2 billion) and total assets of Rs.
32,419 crore (US$ 7 billion) as on June 30, 2011 The concluding points of this project
reports are as follows: Mostly investors are aware about Reliance Securities and have an

74
interested in Reliance Securities. The type of investment which the investors prefer is
insurance and are interest to invest in Reliance Securities. Most of the investors have seen
the advertisement of Reliance which they like most on TV. The investors like the
advertisement because its theme and making is appreciable and they think that
advertisement has forced them to invest in financial products. The media is presenting the
advertisement more effective for financial schemes is TV. The advertisement is necessary
for the sale of financial schemes. The expenditure incurred an advertisement of financial
schemes is such effective that it adds to profit. Advertisement effectiveness is necessary
for company and the study of effectiveness would contribute to improvement in present
advertisement. The investors think that the use of study of effectiveness is for the
company.

SUGGESTION & RECOMMENDATION

The company should develop sale promotion on their products time to time.
Sale Promotion policies should be fair and should be socially accepted.
All the sale promotion policies should be communicated effectively.
The company should gather feedback from customer regarding its marketing strategies.

75
LIMITATIONS
Willingness to response: Sometimes respondents are not ready to respond.
Time for Survey: As the time of Survey is less, there are chances of improvement.
Face little bit of difficulty in collecting required data.
Limited Sample size
Biasness of respondents.
Because of very busy schedule our supervisor was unable us quality time.
Lack of true response.

76
BIBLIOGRAPHY

Prasanna Chandra, Investment Analysis and Portfolio Management, Second Edition,

Tata McGRAW Hill.
John D. Damels, International Business, 10th Edition (2005).
Maheshwari, S.N.: Financial Accounting New Delhi, Sultan Chand Publication,
2004.
Kothari, C. R., Research Methodology, Second Edition, Wishwa Prakashan (1990).
S.S. Khanka, Financial Management, New Delhi, 2003.

77
QUESTIONAIRE
RESPONDENTS PROFILE

Name
Age
Address..
Annual Income..
Q.1. Are you aware about Reliance Securities?
a. Yes b. No
Q.2. If yes, have you interested in Reliance Securities?
a. Yes b. No
Q.3. If yes, which type of investment?
a. Share b. Mutual Fund
c. Insurance d. Gold e. Others
Q.4. If no, are you interest to invest in Reliance Securities?
a. Yes b. No
Q.5. Have you want to invest inS Reliance, you like most?
a. Yes b. No
Q.6. Through which media, you have seen it?
a. TV b. Newspaper

78
c. Magazines d. Others
Q.7.Why do you like to invest?
a. Because it has film stars b. Because of good music
c. It's theme and making is appreciable d. Any other reason
Q.8. Do you think that advertisement has forced you to invest in financial products?
a. Yes b. No
Q.9.Which media is presenting the advertisement more effective for financial schemes?
a. TV b. Newspaper
c. Magazines d. Others
Q.10. Do you think that the advertisement is necessary for the sale of financial schemes?
a. Necessary b. Very necessary
c. Not necessary
Q.11.The expenditure incurred an advertisement of financial schemes is such effective that
it adds to profit?
a. Yes b. No
Q.12. Is IPO effectiveness is necessary for company?
a. Yes b. No
Q.13. Is the study of effectiveness would contribute to improvement in present IPO?
a. Yes b. No
Q.14.What do you think that the use of study of effectiveness is for who?
a. for company b. for employees
c. For customers d. None of these

79