A PROJECT REPORT

ON
"ANALYSIS OF MARKET OPERATIONS OF BUSINESS PARTNERS IN
STOCK BROKING INDUSTRY AND ITS’ FUTURE PROSPECTS"

In

Partial Fulfillment For The Award Of The Degree Of Master Of Business

Administration

Under the Supervision

of

Mr. PANKAJ MISHRA

Operation Manager

BY

RAVI RANJAN BHARTI

Roll No. 000000000000000000

IIIrd Sem

UNIVERSITY OF LUCKNOW, IMS LUCKNOW

1
 DECLARATION

I RAVI RANJAN BHARTI, Roll No. 000000000000000000hereby declare that the

summer training project report Topic "ANALYSIS OF MARKET OPERATIONS OF BUSINESS

PARTNERS IN STOCK BROKING INDUSTRY AND ITS’ FUTURE PROSPECTS" submitted by

me in partial fulfillment for the award of the MBA degree from University of Lucknow, IMS Lucknow is

an outcome of my own efforts and is an original piece of research work.

It contains nonmaterial previously published or written by any other person, nor any material

which to a substantial extent has been accepted for the award of any other degree/diploma of any other

Institute/University, except where due acknowledgement has been made in the text.

RAVI RANJAN BHARTI

2
 ACKNOWLEDGEMENT

I am iondebted to my project guide Mr. Pankaj Mishra (Center Manager) who gave me guidance,

encouragement and inspiration throughout the project. I am very grateful to him for his support that

enabled me to enahcne my knowledge and helped to draft teh report. I also express my sincere thanks to

Mr. Rahul Rajyavardhan Mishra (Operation Manager) for helping me and guiding me in completing

my project.

All in all, it was the pleasant learning experience for me in Reliance Stock Market. thanks to all seniors

and staff for making it so memorable. It was their encouragement that support and co-operation, which

made me, give some meaning to my project.

RAVI RANJAN BHARTI

Roll No-000000000000000000

3
 CONTENTS

S.no Paticulars Page no.

1. Industry Profile 6
2. Company Profile 23
3. Swot Analysis 49
4. Competitors Details 51
5. Research Methodology 56
6. Findings 62
7. Recommendations 64
8. Conclusion 67
9. Annexure 69

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5
INDUSTRY PROFILE

This project pertains broadly to the financial service sector.

In today's corporate and competitive world financial sector has the
maximum growth and potential as compared to other sectors. Financial products
have the maximum growth rate of 70-80%while FMCG has maximum 12-15% of
growth rate.

In last few years,

 India has emerged as the one of the most rapidly growing economies in the
world.
 India has been categorized with nations like Brazil, Russia and China (BRIC
Nations) who are going to be the prime drivers of world economy in next few
decades.
 Since the time, India first opened its gates to foreign investment (FDI & FII),
there has been a complete turnaround. Now the traditional Hindu rate of growth
is a thing of past and clocking 8%-9% GDP growth rate is the common norm.
 India along with other Asian powerhouse China makes for the fastest growing
nations in the entire world.
 Even in the case of ongoing global recession, India has managed to perform far
better than other nations.' Right from banking system to financial regularities,
the country has thrived on discipline and out-performance.
 The booming Indian economy resulted in widespread growth and arrival of new
industries.

6
 All these resulted in a most sparkling phenomenon in the form of financial
market renovation of India. Financial services in India has' taken a giant leap from
the days of standing in banks queue for several hours for opening a saving account
or trying to get some fixed deposits (FD) done. The financial services have
increased manifold and now people have the choice to choose the one that most
suitably fits the bill. There are several services like broking firms, investment
services, financial consulting, evergreen national banks, numerous private banks,
mutual funds, car and home loans, equity market and other banking services.
Services are many and offered by blue chip names of the industry.
Most of the companies in financial segment offer consultancy services and all
the services of wide financial gamut.
Securities Market

Securities Market Past

Pre-demat era (under paper based share certificate environment)The investors

can be broadly classified into two groups on the basis of process of acquiring
equity shares, viz. investors who get allotment of shares in the primary market
and investors who purchase shares from the recognized stock
exchanges(secondary market). Some of the risks involved in dealing with
physical shares through public issue allotment and secondary market
transactions can be identified as follows: - Share certificates are sometimes lost
in transit. In that scenario, the investors have to give an indemnity bond to
Company, which involves a cost to the investor, besides depriving him of the
opportunity to sell the shares at the opportune time. - Time taken to receive the
shares is also quite long compared to the present dematerialized environment.

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Secondary market operations were fraught with bad paper due to signature
differences, forged and fake certificates stolen certificates and delayed transfer
resulting in low confidence in the market place. In public issues, Companies
were / are incurring several costs in distributing the share certificates to the
investors. They are as follows: - Printing of share certificates (@ about Rs 1.00
per certificate), RTA handling charges (@ about Rs 5.50 per folio), actual cost
of dispatching by registered post and other expenses. In case of investors
purchasing the shares from the secondary market, there are certain costs
incurred by the companies. After the shares are transferred into the investor’s
name, the expenses on corporate benefits distribution will be same for all
shareholders owning the shares in physical form. Structure and Collection
method of charges under paper based share safe-keeping and transfer
mechanism.

Under this method companies used to incur all expenses pertinent to share
transfer in the name of the buyer. These could be classified into two broad
categories on the basis their nature:

(a) Variable expenses (I)Share Transfer(ii)Maintenance of folio

records.(iii)Custody of physical shares, etc.,(iv)Dividend and other
corporate actions
(b) Event Specific Expenses (i) Issue of duplicate certificates (ii) Adhoc
reports, etc. Individual investor/Institutional investor was required to pay
0.5 percent of purchase value of share as stamp duty under physical
environment which has been totally removed under demat conditions.
Further, issues pertaining to bad paper like, signature difference, fake or
forged certificate, etc. besides delay in transfer, are eliminated and thus
investor is a direct beneficiary. The price risk faced by the investor has

8
 also been eliminated. As per some unofficial estimates, the cost related
to the bad paper was to the extent of about 20 percent of the market
value of shares. Currently this figure is estimated to be almost nil.
Post-trade activities: The post trade activities of the stock exchanges are
handled by their respective Clearing house/corporation. In the physical
environment, the Clearinghouse/corporation incurred several expenses on
various heads as follows: - Physical space required collecting share certificates-
Sorting them with respect to receiving member.

Safekeeping of share certificates delivered at the Clearinghouse/corporation.

Insurance costs. Huge human costs incurred for executing pay-in and pay-out
activities. Transportation costs incurred in movement of physical share
certificates from one metro to other metro for pay-in and pay-out. On the basis
of informal discussion, it can be stated that there is drastic reduction in cost of
pay-in and pay-out facility. A part of it might have been passed on to brokers/
dealers of the stock exchanges.

Further, as it has been observed in the study of M.T. Raju (2000), the brokerage
fell significantly during this period for high net worth investors. For small
investor, the fall in the brokerage is not proportional even though there is a
decline in the brokerage. Early period of demat the regulator, SEBI, had played
a significant role in nurturing the promotion and growth of dematerialization
for the benefit of all investors and for the cause of developing efficient
securities market in India. During the initial period, the depositories used to
collect transaction charges as well as custodial charges on ‘ad valorem’ basis.
This is directly related to the value of securities bought or sold and held in
custody. Higher values attracted higher fees and vice-versa. There was a feeling
under this system that the payment by the high net worth investors and

9
institutions was disproportionate to services received by them. In the demat
environment, to a large extent, services rendered are invariant to value of
transaction. In many other markets, the charges are levied on the basis of
number of transactions which is also known as flat fee structure. In India,
depositories subsequently switched over to flat fee structure of charges on
transactions. . However, notwithstanding this, in India the share ownership
pattern is quite different from what it is, in the developed markets, as well as in
some of the emerging markets. Considering the role of small investors in Indian
capital market, we need to have a cost effective system which will address
many of the issues concerning small investors. The dematerialization success
story could be partly attributed to individual investor for his full support to the
regulatory direction.

As it was mentioned in the study of M.T. Raju and Prabhakar Patil (2001),
Indian stock markets had taken significantly less time to complete the
Herculean task of dematerialization as compared to some of the developed
markets like USA, UK, etc. Depository Participants Depository participants
(DPs) impose various charges on the institutional as well as on individual
clients under various heads for providing services.

The services available in dematerialized environment that are extended to the

clients are as follows: • Dematerialization Rematerialization• Custodial services
Debit or Credit facility Hypothecation Speed-e along with smart card Corporate
benefits like bonus, stock split, dividend payment, etc This is an illustrative list
of services available. The system of charging a fee forth services extended to an
investor is in two-layers. The Depository charges the DPs and DPs in turn
collect fee/charges from the investor. Each DP uses different norms to classify
charges depending on the extent of services rendered. NSDL has a provision for

10
collecting a one-time fee of 0.05 percent of market capitalization of the
company, as custody fees for life. For these companies, no custody charge is
supposed to be charged from the investors for life. The list of55 companies that
had paid this one time fee is enclosed in Annexure I. However, it is not clear
whether DPs are passing this benefit to investors or not for these 55
companies.VI. Charges under the present method FFSThe depositories started
charging DPs on FFS basis since May, 2002 and DPs in turn started charging
on FFS basis to investors. This system is tilted in favour of high net worth and
institutional investors who trade in large quantities. The long-term small
investor who trade less frequently feel the unwanted burden of heavy outgo on
account of FFS.Custody charges are levied on the basis of ISIN numbers,
irrespective of the value of shares in custody. As a result, there is a piquant
situation, wherein on one side, the value of shares may be getting eroded while
on the other hand the investors are required to pay custody charges that some
times exceed the value of shares held in custody. This has been a very sour
point. As the value of the holding is small, the charges paid as percentage of
value of their holding work out to be very high.

Current and future

It is needless to say that the financial markets (banks and the securities markets)
finance economic growth. They canalize savings to investments and thereby
decouple these two activities. As a result, savers and investors are not
constrained by their individual abilities, but by the economy’s ability to invest
and save respectively, which inevitably enhances savings and investment in the

11
economy. To the extent the growth of an economy depends on the rate of
savings and investment, financial markets promote economic growth. The
banks and securities markets are two competing mechanisms to channel savings
to investment. The securities markets score over banks in the allocation
efficiency, as it allocates savings to those investments which have potential to
yield higher returns. This inevitably leads to higher returns to savers on their
savings and higher productivity on investments to enterprises. Hence to the
extent economic growth depends on the rate of return on investments, securities
market promotes economic growth. With this brief background, I propose to
talk first about functions of the securities market, then its role and importance
in the growth of an economy, then how a liberalized securities market promotes
economic growth, then talk about its significance in the Indian economy and
finally, significance of the market in the growth of Indian economy.

Functions of Securities Market

The securities market allows people to do more with their savings than they
would otherwise. It also allows people to do more with their ideas and talents
than would otherwise be possible. The people’s savings are matched with the
best ideas and talents in the economy. Stated formally, the securities market
provides a linkage between the savings and the preferred investment across the
entities, time and space. It mobilizes savings and canalizes them through
securities into preferred enterprises. The securities market enables all
individuals, irrespective of their means, to share the increased wealth provided
by competitive enterprises. The securities market allows individuals who can
not carry an activity in its entirety within their resources to invest whatever is
individually possible and preferred in that activity carried on by an enterprise.
Conversely, individuals who can not begin an enterprise they like can attract

12
enough investment form others to make a start and continue to progress and
prosper. In either case, individuals who contribute to the investment share the
fruits.

The securities market also provides a market place for purchase and sale of
securities and thereby ensures transferability of securities, which is the basis for
the joint stock enterprise system. The liquidity available to investors does not
inconvenience the enterprises that originally issued the securities to raise funds.
The existence of the securities market makes it possible to satisfy
simultaneously the needs of the enterprises for capital and of investors for
liquidity. The liquidity the market confers and the yield promised or anticipated
on security encourages people to make additional savings out of current
income. In the absence of the securities market, the additional savings would
have been consumed otherwise. Thus the provision of securities market results
in net savings. The securities market enables a person to allocate his savings
among a number of investments. This helps him to diversify risks among many
enterprises, which increases the likelihood of long term overall gains.

Securities Market and Economic Growth

It is strongly believed that a well functioning securities market is conducive to

sustained economic growth. There have a number of studies, starting from
World Bank and IMF to various scholars, which have established robust
relationship not only one way, but also the both ways, between the
development in the securities market and the economic growth. An important
study by Ross Levine and Sara Zervos (1996) finds that the stock market
development is highly significant statistically in forecasting future growth of
per capita GDP. Their regressions forecast that if Mexico or Brazil were to

13
obtain stock markets as advanced as Malaysia, then they might obtain an
additional per capita GDP growth per year of 1.6%. This happens, as market
gets disciplined / developed/ efficient, it avoids the allocation of scarce savings
to low yielding enterprises and forces the enterprises to focus on their
performance which is being continuously evaluated through share prices in the
market and which faces the threat of takeover. Thus securities market converts
a given stock of invest resources to a larger flow of goods and services. The
securities market fosters economic growth to the extent that it-(a) augments the
quantities of real savings and capital formation from any given level of national
income, (b) increases net capital inflow from abroad, (c) raises the productivity
of investment by improving allocation of invest able funds, and (d) reduces the
cost of capital. It is reasonable to expect savings and capital accumulation and
formation to respond favorably to developments in securities market. The
provision of even simple securities decouples individual acts of saving from
those of investment over both time and space and thus allows savings to occur
without the need for a concomitant act of investment. If economic units rely
entirely on self-finance, investment is constrained in two ways: by the ability
and willingness of any unit to save, and by its ability and willingness to invest.

The unequal distribution of entrepreneurial talents and risk taking proclivities

in any economy means that at one extreme there are some whose investment
plans may be frustrated for want of enough savings, while at the other end,
there are those who do not need to consume all their incomes but who are too
inert to save or too cautious to invest the surplus productively. For the economy
as a whole, productive investment may thus fall short of its potential level. In
these circumstances, the securities market provides a bridge between ultimate
savers and ultimate investors and creates the opportunity to put the savings of

14
the cautious at the disposal of the enterprising, thus promising to raise the total
level of investment and hence of growth. The indivisibility or lumpiness of
many potentially profitable but large investments reinforces this argument.
These are commonly beyond the financing capacity of any single economic unit
but may be supported if the investor can gather and combine the savings of
many. Moreover, the availability of yield bearing securities makes present
consumption more expensive relative to future consumption and, therefore,
people might be induced to consume less today. The composition of savings
may also change with fewer saving being held in the form of idle money or
unproductive durable assets, simply because more divisible and liquid assets
are available. The securities market facilitates the internationalization of an
economy by linking it with the rest of the world. This linkage assists through
the inflow of capital in the form of portfolio investment. Moreover, a strong
domestic stock market performance forms the basis for well performing
domestic corporate to raise capital in the international market. This implies that
the domestic economy is opened up to international competitive pressures,
which help to raise efficiency. It is also very likely that existence of a domestic
securities market will deter capital outflow by providing attractive investment
opportunities within domestic economy. Any financial development that causes
investment alternatives to be compared with one another produces allocation
improvement over a system of segregated investment opportunities.

The benefits of improved investment allocation is such that Mc Kinnon defines

economic development as reduction of the great dispersion in social rate of
return to existing and new investments under domestic entrepreneurial control.
Instead of emphasizing scarcity of capital, he focuses on the extra-ordinary
distortions commonly found in the domestic securities markets of the

15
developing countries. The distortions in the real sectors such as monopoly
power, tariff protection, import quotas, credit rationing and so forth add salt to
injury. In the face of great discrepancies in rate of return, the accumulation of
capital does not contribute much to development. A developed securities
market successfully monitors the efficiency with which the existing capital
stock is deployed and thereby significantly increases the average return. In as
much as the securities market enlarges the financial sector, promoting
additional and more sophisticated financing, it increases opportunities for
specialization, division of labour and reductions in costs in financial activities.
The securities market and its institutions help the user in many ways to reduce
the cost of capital. They provide a convenient market place to which investors
and issuers of securities go and thereby avoid the need to search a suitable
counterpart. The market provides standardized products and thereby cuts the
information costs associated with individual instruments. The market
institutions specialize and operate on large scale which cuts costs through the
use of tested procedures and routines. There are also other developmental
benefits associated with the existence of a securities market. First, the securities
market provides a fast-rate breeding ground for the skills and judgment needed
for entrepreneurship, risk bearing, portfolio selection and management. Second,
an active securities market serves as an ‘engine’ of general financial
development and may, in particular, accelerate the integration of informal
financial systems with the institutional financial sector.

Securities directly displace traditional assets such as gold and stocks of produce
or, indirectly, may provide portfolio assets for unit trusts, pension funds and
similar FIs that raise savings from the traditional sector. Third, the existence of
securities market enhances the scope, and provides institutional mechanisms,

16
for the operation of monetary and financial policy. While the above indicate
that the securities market promotes economic growth, it is not one way relation.
The economic growth also promotes securities market, which I am not
discussing now. Liberalized Securities Market and Economic Growth Now let
me explain how a liberalized securities market helps promote economic growth.
The more liberalized a securities market is, the better is its impact on economic
growth. Interventions in the securities market were originally designed to help
governments expropriate much of the seignior age and control and direct the
flow of funds for favored uses. These helped governments to tap savings on a
low or even no-cost basis. In some economies governments used to allocate
funds from the securities market to competing enterprises and decide the terms
of allocation. The result was channelisation of resources to favored uses rather
than sound projects. In such circumstances accumulation of capital per se
meant little, where rate of return on some investments were negative while
extremely remunerative investment opportunities were foregone. This kept the
average rate of return from investment lower than it would otherwise have been
and, given the cost of savings, the resulting investment was less than optimum.
This led mainstream development economists to argue that liberalization of
securities market is the road to higher levels of domestic savings/investment
and more efficient allocation of capital. The implication of intervention is
illustrated in figure 1. The vertical axis represents cost of capital and rate of
return on investment and the horizontal axis represents the amount of capital
raised from the securities market. With intervention, the demand for investment
is represented by DyD, which indicates lower average rate of return
corresponding to sub-optimal resource allocation.

17
As the level of investment increases to OD, the maximum permitted by the
authorities, the average rate of return decreases as relatively less remunerative
investments are approved. SS represents the supply of capital. This results in an
investment of K. If, however, intervention is withdrawn, rate of return will go
up causing a shift in demand for investment schedule to D1D1, which will be
down ward sloping through out. This would result in higher investment and
consequently income which would shift supply schedule of capital to S1S1.
The investment would further increase to K* and rate of return would improve
to r*. Rate of return improves because removal of intervention rations out low
yielding investments. As the cost of capital goes up, the entrepreneurs are likely
to switch to less capital-intensive technologies. Such technologies may not only
raise the average productivity of capital, but also represent appropriate
technology provided by relative availability and cost of labour and capital in
the economy. Letting rate of return be determined by the market mechanism
would reduce or even eliminate the costs involved in credit rationing
arrangements and thereby enhance the efficiency of the economy as a whole.
High rate of return would stimulate demand for financial assets and expand
financial sector one of the bitter fruits of intervention has been the shrinkage of
the securities market. When subject to effective expropriation through
suppressed return on investment, people naturally seek a proper reward
elsewhere, either through capital flight, through a retreat to under ground or
through the hoarding of goods. People keep their savings out of the markets.
The underground sector allocates the resources, but relatively inefficiently.
Another major consequence has been insulation of developing countries from
international capital markets. The domestic market is shielded from
competition. Misallocation of resources can result because of distorting
interventions or the presence of market failure either in the goods market or in
18
the securities market, which are interlinked. Improvement in allocation
efficiency, therefore, requires removal of distortions from both the markets.

19
Significance in Indian Economy

Three main sets of entities depend on securities market. While the corporate
and governments raise resources from the securities market to meet their
obligations, the households invest their savings in the securities. I will now dish
out a few statistics, mostly taken from the Indian Securities Market Review, a
publication of the National Stock Exchange, to indicate the level of
significance. While corporate sector and governments together raised a total of
Rs. 226,911 crore from the securities market during 2001-02, there are about 20
million investors who have invested in the securities. Tables 1 and 2 indicate
the significance of the securities market in Indian economy.

The Indian economy witnessed a descent growth of 6% per year in 1990s

against euphemistically described as Hindu Growth Rate of 3.5% over
preceding four decades. This was possible by contributions mostly by the
organized secondary and tertiary sectors (industry and service). The securities
market helped these organized sectors, corporate and government, to raise
resources to realize a growth rate of 6%. Of late the activity in the securities
market has slowed down, so also the level of activity in the economy.

Regulatory Environment

The regulation of the Indian securities market is one of the best frame works of
regulation among the world. The securities and exchange board of India is the
main regulatory body for Indian securities market. SEBI was formed under the
SEBI Act, 1992 for the purpose of protecting the small investors’ rights and this
organization has been working for this purpose very efficiently and hardly. It has
formed many rules and by laws for efficient regulation of Indian securities market.
Some of the regulations for the securities market are highlighted below.

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SEBI Act, 1992

 CHAPTER I (Preliminary)
 CHAPTER II (Establishment Of The Securities And Exchange Board Of
India)
 CHAPTER III (Transfer Of Assets, Liabilities, etc. Of The Existing
Securities And Exchange Board To The Board)
 CHAPTER IV (Powers And Functions Of The Board)
 CHAPTER V (Registration Certificate)
 CHAPTER VI (Finance, Accounts And Audit)
 CHAPTER VIA (Penalties and Adjudication)
 CHAPTER VIB (Establishment, Jurisdiction, Authority and Procedure of
Appellate Tribunal
 CHAPTER VII (Miscellaneous)
Depositories act, 1996

 CHAPTER I (Preliminary)
 CHAPTER II (Certificate Of Commencement Of Business)
 CHAPTER III (Rights And Obligations Of Depositories, Participants,
Issuers And Beneficial Owners)
 CHAPTER IV (Inquiry And Inspection)
 CHAPTER V (Penalty)
 CHAPTER VI (Miscellaneous)
In addition to above mentioned acts, Securities Contracts (Regulation) Act, 1956 is
there for regulation.

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22
COMPANY PROFILE
Reliance Money, a Reliance Capital company, is part of the Reliance Anil
Dhirubhai Ambani Group. It is a comprehensive financial services and solution
provider providing customers with access to
~ Equity
~ Equity and Commodity Derivatives
~ Portfolio Management Services
~ Mutual Funds
~ IPOs
~ Life and General Insurance and
~ Gold Coins
~ Customers can ·also avail Loans, Credit Card, Money Transfer and Money
Changing services.

Inception of Reliance Money

Reliance Money started operations in April 2007. The company is adding about
2,000 to 2,500 customers every day. It currently has about 1.65 lakh customers and
the traded volumes have crossed about Rs 1,200 crore. It has tied up with Chicago-
based Alaron Trading Corporation, a global, full-service commodity futures
brokerage firm. !'Expanding our global presence, especially with a company of the
stature of Reliance Money, allows Alaron to seamlessly embrace the rapid
expansion in the futures market," Scott Slutsky,. Managing Director of Alaron
Trading, told news agencies. Alaron's trading platforms offer direct access to
virtually every electronic and pit-traded contract in the world. Reliance Money will
facilitate the trading process through its 88 branches and 2,200 outlets in
India."Through this important window provided by Alaron, our customers in India
23
will be in a position to readily trade international commodity futures in a cost
effective, convenient, and secured manner," said Sudip Bandyopadhyay, Director
of Reliance Money.
The Reliance - Anil Dhirubhai Ambani Group is among India's top three private
sector business houses on all major financial parameters, with a market
capitalization of Rs.325,000 crores (US$ 8 billion), net assets in excess of
Rs.115,OOO crores (US$ 29 billion), and net worth to the tune
of Rs.55,000 crores (US$ 14 billion). Across different companies, the group has a
customer base of over 100 million, the largest in India, and a shareholder base of
over 12 million, among the largest in the world. Through its products and services,
the Reliance - ADA Group touches the life of 1 in 10 Indians every single day. It
has a business presence that extends to over 20000 towns and 4.5 lakhs villages in
India, and 5 continents across the world.
 Mr. Bandyopadhyay says, "We haven't entered this business to take a share
in this market. We are going to expand the market."He explains, 'The
number of investors in mutual funds is about 30 million going by the folios.
The number of individual bank accounts in the country is about 330 million.
But the number of demat accounts has stagnated around 5.8 million for the
past decade."
 Reliance Money is an all-India presence and a reach that is on a par with
what State Bank of India enjoys with about 9,500 branches..
 Reliance Money's key business driver may be its pricing strategy. It has
decided to levy a flat charge of Rs 500 per annum for trading volumes of up
to Rs 1 crore and slightly higher charges for higher volumes. Currently
competing brokerages charge something in the region of 0.5% to 1% on each
transaction.

24
  As Mr. Bandyopadhyay puts it, "Brokers charge you 1% if you buy 10
shares. They charge someone else 1% of the cost of 100 Shares, if they buy
100 shares and similarly 1% of 1,000 shares if you buy 1,000 shares. There
is no extra effort involved except punching in an extra zero. Why pay just to
punch an extra zero?"

Objective of the company

The main objectives of the company are as follows
 To attain global best practices and become' a world-class financial services
enterprise guided by its purpose to move towards greater degree of
sophistication and maturity.
 To work with vigor, dedication and innovation to achieve excellence in
service, quality.
 Reliability, safety and customer care as the ultimate goal.
 To earn the trust and confidence of all stakeholders, exceeding their
expectations and make the Company a respected household name.
 To consistently achieve high growth with the highest levels of productivity.
 To be a technology driven, efficient and financially sound organisation.
 To contribute towards community development and nation building.
 To be a responsible corporate citizen nurturing human values and concern
for society, the environment and above all the people.
 To promote a work culture that fosters individual growth, team spirit and
creativity to overcome challenges and attain goals.
 To encourage ideas, talent and value systems.
 To uphold the guiding principles of trust, integrity and transparency in all
aspects of interactions and dealings.

25
Milestones Achieved so for
 In last 12 months Reliance Money have taken giant strides. It has been:
 India's Top Broking and Distribution house..
 The largest broker with distribution reach of 20,000+ touch points, 10,000+
outlets across 4000 towns/cities
 1 lakh transactions on an average, in the money transfer business.
 Amongst the largest private sector partners of Western Union Money
Transfer in India.

Growth of the organization

The growth of the company is driven by 8 success sutras adopted by it namely
trust, integrity, dedication, commitment, enterprise, hard work and team play,
learning and innovation, empathy and humility.
 Reliance Money generated revenues of Rs.35 billion (US$ 767 million) for
the year March 31, 2009 as against Rs.24 billion of the corresponding
previous period, an increase of 48%. It also achieved net profit ofRs.368
million (US$ 8 million) for the same period, as against a net profit of Rs.1
million for the corresponding previous period.
 Reliance Money is amongst the leading mutual fund distributors of the
country distributing products of 20 AMes. It is the largest private sector
partner for Western Union Money Transfer in India.
 The Rs 352 crore online broking and distribution major, Reliance Money, is
the first mover in deploying technology tools across its operations. Having
all of its operations automated with tightly controlled risk management.
 Mr. Bandhyopadhyay believes IT brings in and finds that technology usage
would ensure high data availability, accuracy and integrity to the trading
business and help differentiate oneself from the competition. The IT head,
26
 Nagaraj, has left no stone untamed in driving the IT benefits to users. Being
a strategic planner, Nagaraj has evolved a clear IT blueprint categorizing IT
under three portfolios such as expansion, strategic and sustenance which
address all challenges as a cost control, mitigating risk, and helping in
expansion to address a larger audience.
 Reliance Money generated revenues of Rs. 35 billion (US$ 767 million) for
the year March 31, 2009 as against Rs. 24 billion of the corresponding
previous period, an increase 'of 48%. It also achieved a net profit of Rs. 368
million (US$ 8 million) for the same period, as against a net profit of Rs. 1
million for the corresponding previous period. This increase was primarily
due to the expansion of the distribution network and increase in its customer
base.
Growth Drivers of Reliance Money.
TRUST

ENTERPRISE INTEGRITY

HARD WORK & DEDICATION

GROWTH DRIVERS FOR
TEAM PLAY
RELIANCE MONEY

EMPATHY & COMMITIMENT

HUMANITY

LEARNING &
INNOVATION

27
 Reliance Money is a comprehensive financial. services and solutions
provider, providing customers with access to equities, equity options and
commodities futures, wealth management, portfolio management services,
mutual funds, IPOs, life and general insurance~ products, offshore
investments, credit cards, money transfer, currency exchange and gold coins.
 Reliance Money has tied up with global partners like Reuters, Vasco,
Valcambi, Webaroo, OptionsXpress Holdings, Goldride Securities, Wodd
Gold Council, Wincor Nixdorf and DBS Vickers to facilitate better access to
wider world class choices to its customers.
 In addition to the home-grown portfolio of products and services that
Reliance Capital has to offer, Reliance Money also distributes a variety
other~ party financial products. It also assists millions of investors. in
creating customized individual portfolios based on their diverse investment
needs and risk profiles.
 Reliance Money is amongst the leading Mutual fund distributors of the
country distributing products of 20 AMCs. It is the largest private sector
partner for Western Union Money Transfer in India.
 To further improve its position in the money changing and money transfer
business, Reliance Money has acquired a significant share holding in Wall
Street Finance Ltd, a leading provider of money changing and money
transfer services in the Country. Reliance Money has tied up with Kuoni
India and plans to retail its forex products/ services through the national
network of over 70 Kuoni outlets.
 Reliance Money has tied up with India Post and World Gold Council to sell
gold coins through the post office network across the country.

28
  Reliance Money has obtained Category - I Merchant Banking License from
the
 Securities and Exchange Board of India. This new license allows Reliance
Money to provide a wide range of investment banking services such as Issue
Management,
 Underwriting, Private Equity Advisory/ Syndication and Corporate Finance
services in India.
 Reliance Money is taking its first steps into the Commodities Exchange
business and is in the process of acquiring a 15 per cent stake in Hong Kong
Mercantile Exchange (HKMEx). With this holding, Reliance Money
becomes the second-largest shareholder in the commodity exchange and will
have a board membership. Reliance Money is the first Indian finn to acquire
a stake in an international exchange.
 It has also obtained approval from, the Ministry of Consumer Affairs for
acquiring 10% stake in the National Multi-Commodity Exchange of India
Ltd. (NMCE).
Nature of the business carried
Reliance money is carrying business such as it is giving a service of online trading
with less brokerage Charge, and it also having· financial products such as Life
Insurance . General insurance giving investment facility in Equity, mutual fund,
PMS, and also it is carrying a . money transfer and money exchange, and also
dealing with gold coins.

Vision Mission and Quality Policy

Vision

29
The vision of Reliance Money is to achieve & sustain market leadership, Reliance
Money shall aim for complete customer satisfaction, by combining its human and
technological resources, to provide world class quality services. In the process
Reliance Money shall strive to meet and exceed customer's satisfaction and set
industry standards.
Mission
The mission of the company is to be a leading and preferred service provider to our
customers, and we aim to achieve this leadership. position by building an
innovative, enterprising, and technology driven organization which will set the
highest standards of service and business ethics.
Quality policy
Talented, efficient and competent team of youngsters rolling out high profile
applications for the global business community, keeping in mind true quality, total
customer satisfaction, delivering on time, right time, every time.

Creatively involved in providing high quality products and services through:

• Responsiveness to customer needs.
• Provision of work satisfaction and promising careers. .
• Constant measurement and monitoring of all operations.
• Continuous improvements of procedures, products, and services; and
• Performance of operations in a responsible manner.
Product and service profile
'Reliance Money provides a· comprehensive platform, offering an investment
avenue for a wide range of asset classes. Its Endeavour is to change the way India
transacts in financial markets and avails financial services. Reliance Money
currently offers its services in Broking and Distribution of Financial Services and
Products.
30
Equity
• Separate Dealing Room for HNI, Institutional & Corporate Clients at the
head office in Mumbai, manned by expert dealers
• Relationship Manager assigned for each large relationships.
• Tools that help plan investments, tax, retirement, etc.
• Risk profile analyzer
• Asset allocators to build an appropriate investment portfolio..

Equity and Commodity Derivative

• Trading and Clearing membership of BSE, NSE, MCX and NCDEX
providing broking
• services in Equity, Equity & Commodity Derivatives
• Option of on-line as well as off-line trading
• Trading is completely secure with 3 levels of security i.e. User ill, Password
and Security Token, which is available only with Reliance Money Portfolio
Management Services (PMS)
• Investors get regular statements and updates on the investments
• Investors get access to Relationship Managers Financial Advisors through
whom they dill interact with Fund Managers to discuss their portfolio

Wealth Management Services

• End to end Wealth Management Services.
• Assessing financial health and risk profiling of the client.
• Tax Advisory includes buying, selling, renting and valuation of properties..
• Mutual Funds
• Distribution of equity and debt products from leading AMCs including
structured products such as Portfolio Management Services.
31
 • Financial Planning Through SIPs.
• Systematic Investment Plans (SIPs)
• SIP is a method to increase exposure to equities gradually over a long period
of time say over 5-10 years by investing in equity funds by using the concept
of rupee cost of averaging.
• Disciplined investing in equity funds over longer time frames coupled with
power of compounding helps generate superior returns.
• SIP provides better downside protection as the amount invested each month is
very small compared to the overall investment.

IPO
• IPO Distribution: Reliance Money distributes all IPOs (Book Building as well
as Fixed Priced) pan India through its distribution channel (Online + Offline)
and helps get IPO
• Investment benefits by providing end to end assistance
• Life and General Insurance
• Life Insurance
• Reliance Money provides Life Insurance that helps provide financial
assurance and securities for your dependents and loved ones. Life Insurance
products offer comprehensive financial solutions which besides offering
financial security also provide opportunity for saving, investment and tax
planning..
• General Insurance
• Reliance Money extends various General Insurance products with an
exhaustive range of insurance policies that covers most risk including Motor,
Health, roperty, Marine, Casualty, Credit and Liability
• Pure Gold Coin
32
 • Gramm age: 0.5 gram, 1 gram, 5 gram and 8 gram, Pure Gold Swiss Coins
• Purity: 24 carat, 99.99% pure
• Fineness: 999.9 (Highest purity that can be achieved in Gold)
• Packaging: Available in a see through, tamper-proof packaging with a
certificate of purity from Swiss Assayer
• Availability: All India, across all Reliance Money and Reliance World outlets

Money Changing.
• Reliance Money Express is a Full-Fledged Money Changer (FFMC)
authorized by the Reserve Bank of India for foreign exchange
transaction
• Sales and Purchase of Foreign Currency Notes.
• American Express Traveler's Cheques and Prepaid Foreign Currency
Area of operation
o Reliance Money offers the services not only all over India but also
outside India. Reliance
o Money is one of the leading brokerage and distributors of financial
products in India with more than 3.3 million customers.
Operation in India
As on March 31, 2009, Reliance Money had a distribution network of 10,350
outlets across 5,165 locations in India.
TABLE 1 : Detail Scale of Operation of Reliance Money In India
Scale Of Operation On 31st March 2010 On 31st March 2009

No of outlets 10350 8512

Franchise 10125 8279
Owned 225 233
No. of broking accounts 1010000 713636

33
Total no. of customers 3300000 2000000
Daily average stock
exchange turn over ( 15 15
Billion)
Reliance Money has over 96 offices all over India.
Overseas Branches of Reliance Money
• Hong kong
• Malaysia
• Muscat
• Nigeria

2.6 Ownership pattern

Reliance Capital is one of India's leading and fastest growing private sector
financial services companies, and ranks among the top 3 in terms of net worth.
Reliance Money, a Reliance Capital company, is part of the Reliance Anil
Dhirubhai Ambani Group. It is a comprehensive financial services and solution
provider providing customers with access to Equity, Equity and Commodity
Derivatives, Portfolio Management Services, Mutual Funds, lPOs, Life and
General Insurance and Gold Coins. Customers can also avail Loans, Credit
Card, Money Transfer and Money Changing services. The largest braking house in
India with over 2.5 million customers and a wide network of over 10,000 outlets
and 20,000 touch points in 5,000+ locations. The average daily volume on the
stock exchanges is Rs. 2,000 crores, representing approximately 3% of the total
stock exchange volume.
The Reliance - Ani! Dhirubhai Ambani Group has a market capitalization of
Rs.325,000 crores (US$ 81 billion), net assets in excess of Rs.115,OOO crores

34
(US$ 29 billion), and net worth to the tune of Rs.55,000 crores (US$ 14 billion).
Across different companies, the group has a customer base of over 100 million, the
largest in India, and a shareholder base of over 12 million, among the largest in the
world. It has a business presence that extends to over 20000 towns and 4.5lakhs
villages in India and 5 continents across the world.

FOUNDER OF RELIANCE
Few men in history have made as dramatic a contribution to their country's
economic fortunes as did the founder of Reliance, Sb. Dhirubhai H Ambani.
There is more than one unique way of describing the true genius of Dhirubhai: The
corporate visionary, the unmatched strategist, the proud patriot, the leader of men,
the architect of India's capital markets, and the champion of shareholder interest.
When Dhirubhai embarked on his first business venture, he had a seed capital of
barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he
converted this fledgling enterprise into a Rs 60,000 crore colossus-which earned
Reliance a place on the global Fortune 500 list, the first ever Indian private
company to do so. Dhirubhai is widely regarded as the father of India's capital
markets. In 1977, when Reliance Textile Industries Limited first went public, the
Indian stock market was a place patronized by a small club of elite investors which
dabbled in a handful of stocks. Dhirubhai always kept the interests of the ordinary'
shareholder uppermost in mind in the process making millionaires out of many of
the .initial investors in the Reliance stock, an creating one of the world's largest
shareholder families.

CHAIRMAN'S PROFILE
Regarded as one of the foremost corporate leaders of contemporary India, Shri
Anil D Ambani, 50, is the chairman of all listed companies of the Reliance ADA
35
Group, namely, Reliance Communications, Reliance Capital, Reliance Energy,
Reliance Natural Resources and Reliance Power.

Infrastructural facility
The Reliance money financial service ltd, is located in Bangalore- Ulsoor
The company has rented property:
Total Area rented by the company is located : 3,000 square feet.
Built in Area of the company : 2,800 square feet.
All the member of the company employees are good in communication. Also good
information air technology support is available. Cleanliness is given utmost
importance in the company.
There are air- conditioners, proper lighting and ventilation and Tele
communication facilities. The Reliance money company also provides Travel
allowances, and Medical allowance facilities to the employees and parking facility
is also available.

TECHNOLOGY
With over 50000 sq ft of built infrastructure they have used technology to enable
their business and delivery services with cutting edge technology. They have
established a dedicated technology data at with built-in all purpose redundancies to
support their clients. The various aspects with regards to infrastructure are
described below:

HARDWARE
Reliance money has invested in state-of the-art infrastructure for its data and server
farms and has tied up with leading technology companies for supply of class server
hardware and high workstations They provide continuous systems integration and
36
support for the facilities at their office. The server infrastructure support hybrid
platforms and it has been designed for high availability transaction volumes. The
work desks are occupied with finest workstation at operational levels.

SOFTWARE DEVELOPMENT
The Reliance money in-house development team is fully occupied with the latest
tools of development and are trained and certified periodically with the industry
best practices by experts from the industry.

NETWORK
The local area networks are deployed using Cat6 cables for data and Cat6 cables
for voice with the fancily to create segregated virtual user and corporate LANS.
More recently Reliance money has also started migrating to the MPLS network to
connect with their branches and provide world class infrastructure at each of our
location.

Key Achievements.
Reliance Money has achieved many milestones like-
 Awarded 'Franchiser of the year' award (service industry) in 6th
International Franchise & Retail show 2009.
 Runner up of 'Best e- Brokerage' award from Outlook Money- NDTV Profit
for 2008
 Awarded 'The Debutant franchisor of the year' at the 5th International
Franchise and Retail Show 2007, New Delhi.
 Rated No.1 Broking House in India by Starcom.

37
  Awarded the 'Red hat World is open Award' for launching highly successful
internet Trading Kiosk. The award and the process was driven by Stock
Consultancy Private Limited.
 Awarded the 'Employer of Choice Award' for creating opportunities for the
youth in the Financial Services Sector. The award was given by the Indira
Group of Institutes, Pune.
 Mr. G.N. Nagraj, CTO, Reliance Money has been awarded the 'CIO of the
year Award' by IT people.

2.10 Work Flow Model.

Reliance money

Bank interface

Surveillance.

Administrative
server.

BSE/ NSE
terminal.

38
 D P Interface.

2.11 Future .Growth & prospects

The growth of financial sector in India at present is nearly 8.5% per year. The rise
in the growth rate suggests the growth of the economy. The financial policies and
the', monetary policies are able to sustain a stable growth rate. The reforms
pertaining to ~he monetary policies and the macro economic policies over the last
few years have influenced the Indian economy to the core.
The major step towards opening up of the financial market further was the
nullification of the regulations restricting the growth of the financial sector in
India. To maintain such a growth for a long term the inflation has to come down
further. The financial sector in India had an overall
growth of 15%, which has exhibited stability over the last few years, although
several other markets across the Asian region were going through turmoil. The
development of the system pertaining to the financial sector was the key to the
growth of the same. With the opening of the financial market variety of products
and services were introduced to suit the need of the customer. The Reserve Bank of
India (RBI) played a dynamic role in the growth of the financial sector of India.

Future prospect of Reliance Money

Reliance Money, the financial services arm of Reliance Capital Ltd, plans to
launch portfolio management services (PMS), where managers will create a basket
of stocks for each client, based on individual needs, for amounts as low as Rs5
lakhs. Such services are popular in India but, almost all the offerings of large
39
finance companies target high net worth individuals (HNIs) with the ability to
invest Rs l crore and above. Reliance Money, which helps clients invest in equities,
derivatives and commodities, will typically offer such services for amounts
between Rs5 lakhs and Rs75 lakhs; Rs5 lakhs is the smallest amount the industry's
regulator mandates for PMS. Reliance Money will launch its PMS ion December
and will especially target executives and professionals in metros and smaller
towns.
Reliance Money would not take a fee unless the portfolio earns a return higher than
8%. If the client earns a return of 8-20%, the fee charged will be 10% of the
absolute returns and if the client earns more than 20%, the fee will be 20%. The
company: plans to offer a large-cap investment portfolio (where the stocks invested
in will be those of large-cap companies), blue chip portfolio (blue chip companies)
and an infrastructure portfolio (companies in the infrastructure sector).Reliance
Money, which started operations in April, already has around 250,000 invest or
accounts and 3,000 outlets by law, while others are optional agreeing to the terms
of an insurance policy.
TRUST

ENTERPRISE INTEGRITY

HARD WORK & GROWTH DRIVERS FOR

TEAM PLAY DEDICATION
RELIANCE MONEY

EMPATHY &
COMMITIMENT
HUMANITY

40
LEARNING &
INNOVATION
 3.2 Strategy

Strategy is the planning devise to maintain and build competitive advantage over
the competition. The main strategies made by Reliance money

► The main strategy is to maintain the consistency in quality and provide

good

quality services to their clients.

► to attain global best practices and become world class financial services

enterprise- guided by its purpose to move towards greater degree of

sophistication and maturity.

► To adapt new technologies fast.

RELIANCE CAPITAL

Reliance General Reliance Life Reliance Reliance Consumer

Reliance Insurance
Insurance Money Finance

Business needs to be organized in a specific form of shape that is generally referred

to as organization structure. It constitutes the basic organization of the
company, its department, reporting lines, areas of expertise and responsibility.

41
Reliance Money has 6 departments and the details of the same are as following
Departments of Reliance Money

Reliance Money

Sales & Marketing Human Operations

Administration Finance
Distributions Department Resources Department
Department Department Departmen
Department
t

3.4 Administration Department

Administrators are basically facilitators of the company. They take care of all the
facilitating activities of all the departments. They help in coordinating different
activities in an organization from selecting the location of the outlet to providing
necessary infrastructure and maintaining the same.
Main Activities of Administration Department:
 Selecting the location.
 Providing with the required infrastructures like computers, furniture, fittings &
fixtures, air conditioners etc.
 Providing the storage facility.
 Looking after Marketing, Branding, and Legal, Sales and Distribution, payment
of salaries and other payments required for the functioning of day
to day activities
Sales and Distribution Department
In Reliance Money sales and distribution department plays an important
role in the following way
 Collecting the leads from the website, kiosks and trainees.
 Contacting the clients through direct contact or mails.

42
  Explaining the features of the products.
 Explain about the essential documents.
 Facilitate the customers with a Demo.

Marketing Department
Marketing is the delivery of customer satisfaction at a profit. Marketing, any other
business function deals with customer. Creating customer value and satisfaction
are the heart of the modem marketing. Therefore two fold goal marketing is to
attract new customers by promising superiors value and to keep current customers
by delivering satisfaction.
In Reliance Money marketing highlights on
 Understanding consumer needs and wants.
 Value satisfaction and quality.
 Products and services.
 Exchange, transfer and relationship.

Human Resource Department

HR adds considerable value when it creates a customer focused corporate culture.
In Reliance Money they follow that HR professional must be highly
knowledgeable about the market place for capital, products and services. HR must
not only be knowledgeable of specific customer issues, but also of key aspects of
the macro-societal environment such as:
 Changing values.
 Major problems and the challenges, which are shared by the large segments
of the population.
 Structures of inter-personal relationship that influence buying process.
 Talent management.

43
 HR Functions in Reliance Money:
 Talent acquisition
 Talent development
 Talent management

Figure 5: Human Resource department of Reliance Money

Talent National Zonal Regional

Acquisition Head Head Head

Reliance Learning & National Zonal

Money Head Development Head Head
HR

Talent
Management

Operation Department
The role of operation department is to carry out the policies and underwriting
works. The other functions include performing the day to day activities as well as
smooth functioning of enterprise business.
Following are the important functions of the operations department of Reliance
Money

44
  Issuing the policies.
 Verification of the documents.
 Settling down the claims.
 Charges deduction.
 Dispatching the policy documents.
 Settling the customer's problems.
 Making records related with the customers.
 Follow up.

Finance Department
Finance is the life blood of the organization it is one of the main departments in the
company. To run any organization it should have sufficient fund and it should
carry the cost as minimum as possible. The company may arrange required finance
by the way of the equity fund or by way of debt fund. Whatever it may be the
ultimate goal of the finance department is to maximize that value of the firm to its
equity shareholders.
Responsibilities of Finance Department in Reliance Money are:
 To provide account and complete systematic information of financial
activities
 To maintain all the books of account and other financial documents
 To prepare periodic financial statements have the company like Profit &
Loss account and Balance Sheet.

The Four Main Functions of Finance Department of Reliance Money are

 Financial decision
 Investment decision
 Dividend decision

45
  Capital structure decision

3.5Skills
It means the actual skills and competencies of the employees working for the
company and the company itself what the company does the OOst- the distinctive
capabilities and competencies that reside in the organization. Reliance Money is
best known for its network. It's all India presence gives a competitive look.
The company is doing well in adopting new products and services.

3.6Style
All organizations have their own management style. The style refers to how
managers behave in an organization and how collectively spend their time to
achieve the organizational goal.
In Reliance Money the leadership is not much effective as the groups are not
performing as real team. In the team also they have competition which affects the
team culture.
3.7 Systems
The systems consist of formal and informal procedures, including innovation
systems, compensation systems. The systems also include data collection, storage
and utilization for record and appraisal purposes. (Management information
systems i.e. reports of various departments, financial information system i.e.
marketing and sales information, employee information system.

3.8 Staff
The staff of Reliance Money is divided into national head, regional head, zonal
head, cluster head and centre manager, minimum education for the managers is
master degree in MBA and work experience.
46
Reliance money adopts various training facilities to,
 Upgrade the skills of the employees
 Enable the employees to contribute towards organizational objectives.
 Facilitating a self learning
 The company has developed skills and expertise in sales and
marketing of Demat, insurance, and other products

3.9 Shared values

Shared values also refer to the values and beliefs of the company. The value helps
the members in the organization to achieve effective goals.
The Reliance Money is committed to abide to the following values and
responsibilities:
 Be a lean, responsive and learning organization.
 Continuously improve to achieve world-class standards and total customer
satisfaction.
 Maintain cost effective service to the customer.
 Ensure a common culture and a common set of values throughout the
organization
 Recognize individuals' contributions.
 Develop stronger leadership skills, greater teamwork and a global
perspective.

SWOT ANALYSIS
SWOT analysis means analysis of the internal strengths and weakness of the
company and also analysis of external opportunities and threats of the company.
47
Strength
 On line share trading.
 Flexible organization
 Low brokerage services
 High speed trading
 Brand name of the Company.
 No hidden charges.
 Customer education center
 Convenient & Safe
 Single - Window Access
 Cost effective
 Value-Added services
Weaknesses

48
  No Service in Rural Segment.
 Clients are still comfortable with traditional way of trading.
 For the intraday system automatically sell the shares at 2.55pm

Opportunities
 More Potential Market.
 Awareness through Media.
 Foreign Direct Investments & Foreign Institutional Investors in Indian
markets.

Threats
 Market fluctuations
 Government polices and war atmosphere from neighboring countries.
 Competition from banks and insurance sectors.
 Indian market is still in the infant stages in online trading.
 Internet is not available in major part of the nation.

49
50
Competitors
Reliance money has many competitors in the market. These competitors are always
there to stop it from progressing. Some of the competitors are as follows

1. ICICI securities
2. H. D.F.C. securities
3. Marwadi
4. 5 Paisa.com
5. Karvy

ICICI Securities Limited is India’s leading full service investment bank with
a dominant position in all segments of its operations - Corporate Finance,
Fixed Income and Equities. It is a subsidiary of ICICI Bank, the largest
private sector bank in India and operates out of Mumbai with offices in New
Delhi, Chennai, Kolkata, New York, London and Singapore. Under the able
leadership of Mr. Mukherji, Managing Director and CEO, ICICI Securities

51
continues to grow as reflected in its performance over the past couple of
years.

The Corporate Finance team has consistently been among the top players in
M&As and fund raising from domestic and international capital markets.
The Equities team is a major Indian brokerage house and its research covers
over 90% of Sensex market capitalization. The bond research of the Fixed
Income team is a benchmark for the industry.

The eminent position of ICICI Securities is reflected in the number of

awards that our teams in the Fixed Income, M&A and Equity Capital
Markets win. Our Fixed Income team for the last two years (CY04 and
CY05) has been adjudged as the “Best Bond House” in India by both
Asiamoney and Finance Asia. The Equities team was adjudged as the ‘Best
Indian Brokerage House-2003’ by Asiamoney. The Corporate Finance team
tops the M&A/Capital markets league tables regularly.

Our wholly owned subsidiary, ICICI Brokerage Services Limited (IBSL),

buys and sells equities for our institutional clients. ICICI Securities has a
U.S. subsidiary, ICICI Securities Inc., which is a member of the National
Association of Securities Dealers, Inc. (NASD). As a result of this
membership, ICICI Securities Inc. can engage in permitted activities in the
U.S. securities markets. These activities include dealing in securities markets
transactions in the United States and providing research and investment
advice to US investors.

HDFCsec is a brand brought to you by

52
HDFC Securities Ltd, which has been promoted by the HDFC Bank & HDFC
with the objective of providing the diverse customer base of the HDFC Group
and other investors a capability to transact in the Stock Exchanges & other
financial market transactions.

HDFCsec will equip you with the necessary tools to allocate, select and
manage your investments wisely, and also support it with the highest
standards of service, convenience and hassle-free trading tools.

Our mission is to provide our customers with the most useful investment
guidance and investment-related services available in the country. We want to
become a one-stop solution for all your investment needs, one that will help
you get the most out of your money.

We are one of the leading online broking houses in India, with a dominant
position in both institutional and retail broking.

Products & Services

 Online trading for Resident & Non Resident Indians.

 Cash-n-Carry on both NSE and BSE.
 Day trading on both NSE and BSE.
 Trade on Futures & Options on the NSE.
 Online IPO's.
 Telephone-based Broking (Equity & Derivatives).

Later, our service range will be enhanced to include the following:

 Online Buying and selling of select mutual funds units

 Online Purchase of insurance policies
53
  Facilitating asset financing (house and car loans for instance).

Marwadi Group is a decade old financial service group offering Stock-broking and
Commodity broking through NSE, BSE, NCDEX and MCX. We also offer
depository services as DP of NSDL and CDSL. We spread through out India with
our 33 plus branches, 400 plus business associates and manpower strength of over
300 employees. We firmly believe in customer centric and transparent approach
which is backed up by strong technological support. About 1,00,000-customer
base, whose various investment needs are served indicates our index of customer
credibility. We have always been driven by a desire to create values for our
customers-First approach, ethical and transparent business practices, reverence for
professionalism and implementation of cutting edge technology. We strive to
provide with the best services and make our clients' life as simple as possible. And
this has enabled us to flourish into one of the top-50 stock broking houses in India.

A convincing index of our customer loyalty is that nearly 75% of our customers
have been with us for a period of more than three years. This means that a bulk of
our customers have subscribed to our services on a long term-basis.

Marwadi Group strength lies in its team of confident, young, talented, qualified
and experienced professionals to carry out different functions under the able
leadership of its management.

54
55
INTRODUCTION TO RESEARCH-

“Research is a careful investigation or inquiry especially through search for new

facts in any branch of knowledge”

-Research is a systematized effort to gain new knowledge

-Research is a movement from the known to the unknown

-Research is a voyage of discovery.

TYPE OF RESEARCH-

The research study was a descriptive research; the objective of descriptive

research is to portray accurately the characteristics of a particular individual,
situation or a group.

Descriptive research includes surveys and fact-finding enquiries of different

kind’s .The major purpose of descriptive research is description of the state of
affairs as it exists at present .In social science and business research often used
term is Ex Post Facto Research for descriptive research studies. The main
characteristics of this method is that the researcher has no control over the
variables; he can only report what has happened or what is happening .Most Ex
post facto research projects are used for descriptive studies.

Descriptive research includes attempts by researchers to discover causes even

when they cannot control the variables .The methods of research utilized in
descriptive research are survey methods of all kinds, including comparative & co
relational methods.

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RESEARCH APPROACH-

The approach in this study is Quantitative. Quantitative approach to research is

concerned with mass assessment of opportunities that can be made by the
assessment of the data.

Objective of Study

Research process was undertaken to assess the market growth and opportunities in
the equity trading sector for Reliance money. The basic purpose of the research
was to know the market conditions by knowing the preference and expectations of
the share brokers with respect to the services provided to them by their individual
brokers. This in turn would lead us to know about the services they desire and the
potential this market holds which can be grabbed by putting through the right foot
forward by providing the adequate services and gaining a good market share.
Moreover the database that would be maintained in the process would
automatically be stored with the organization that can help us in gathering huge
clientele and generate good business out of them. Also the we are backed by a big
brand name and this would give us an opportunity to clearly make the market
believe in the huge potential that Reliance can provide and how they can develop
their business.

Limitations:

The project has been subject to the following limitations:

o The study was restricted to only in the state of Delhi only.

o The study is conducted with the data available and the analysis was
made accordingly.

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 o It was tough to get all relevant facts from the personnel and
employees concerned due to some secret document not provided by
the business organization, which is inherent in an industry.
o Time factor was a limitation as only a stipulated period had been
ascertained to me while the personnel had little time to my queries
due to their daily busy schedule.
o It is not feasible to compare all the products of various brokerage
firms.
o At times due the fluctuating market conditions many of the times the
respondents were not fully cooperative for the data collection.

RESEARCH PROCESS

The research process consists of series of actions or steps necessary to effectively

carry out the research. The different steps which were taken in this research work
are as under-

(1)-Defining the research problem.

(2)-Specifying research objective.

(3)-Preparing research design.

(4)-Data collection method.

(5)-Selecting the sample type or source.

(6)-Determining the sample size.

(7)-Organizing and carry out the field work.

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(8)-Analyzing the collected information.

(9)-Conclusions and suggestions to the company.

Firstly the research problem was identified i.e. the problem for which research is
necessary (In this research the research problem is the

“ANALYSIS OF MARKET OPERATIONS OF BUSINESS PARTNERS IN

STOCK BROKING INDUSTRY AND ITS FUTURE PROSPECTS”) after this
the research objective is specified which is to collect data from the different
respondents & analyze it to go to the findings.

The next step is to prepare a research design which is as under-

Research Design-

Research Design means to state the conceptual structure within which research
would be conducted.

Data Collection Method-

The data collection method was data collection through questionnaires directly
filled by the respondents.

Sample Type –

The sampling was deliberate sampling or convenience sampling. Convenient was

used to get information from the sources which were most liable to give accurate
information.

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Source of Data –

The data used was primary data only collected directly by the use of
questionnaires. Primary Data can be defined as the data which are collected a fresh
and for the first time and thus happen to be original in character.

The respondents selected were the share brokers in New Delhi selected from
different locations acc. to the convenience.

Sample size-

The number of respondents taken to be were 50 while selection the sample size
case has been taken such that it fulfills the requirements of efficiency, reliability
and flexibility.

Research Methodology is the way to solve the research problem. It considers the
logic behind the study and explains why we are using a particular method and why
we are not using others, so that the results are capable of being evaluated by the
researcher himself or by the others.

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FINDINGS

The findings from this research are on the below mentioned points –

1. – Quality of the services offered by the brokers to the sub brokers &
authorized persons on the dimensions of –
o Product & training support.
o Transaction & processing support.
o Marketing & promotional assistance.
o Additional products & services availability.

2. - Availability of different financial products & services-

o Life insurance.
o General insurance.
o Mutual fund.
o Advisory services.
o Wealth management.
o Money transfer.
o Loans, credit cards & gold investment.

3. – The benefit of goodwill, recognition & business reputation of your

broker to your business.

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63
RECOMMENDATION

The most vital problem spotted is of ignorance. Investors should be made aware of
the benefits. Nobody will invest until and unless he is fully convinced. Investors
should be made to realize that ignorance is no longer bliss and what they are losing
by not investing.

o After sales services and follow up calls are important for getting new
references so trained telesales should be appointed for this purpose
whose sole work should be to make feedback calls.
o Reliance is having too many financial products right from Demat
account to General Insurance and not all the salespeople are familiar
with each and every product so the work force should be segregated
each group dealing in a specific product and the sales target should
be given likewise.
o While interacting with the investors I found that most of the
customers are unaware about the Mutual fund. Some of the people
look upon mutual funds and equity trading as gambling. Thus a
mutual fund awareness program can help to increase the penetration
of mutual funds in the market.
o Rs750 account opening charges are too high when targeting a
corporate so the company should be flexible on this amount.
o Reliance should provide periodic training for updating the product
knowledge of various financial advisors.
o Company should have a scheme of rewards and recognition to
employees and the field persons to boost their motivation.

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o There must be proper advertisement of the company by various media
like Exhibition, Press releases, Newspaper, and Television etc.
o There should be a good research team who has to survey the market
and know about the client’s satisfaction level and also found out the
potential customer.
o There must be a good infrastructure of the company to get the
attention of the public and the office should be at residential area so
those customers get the service easily.
o Though majority of the customer were satisfied with the existing
function but the organization should use some marketing strategies
such as discount scheme on amount of transaction made in a month
by the regular customer. So it will enable the customer to retain in
the organization and to attract new customer.
o There should be regular training program like Workshops, Seminars,
and Meetings etc. for the sake of development of the organization
and also for the development of the employees’ performance
simultaneously.

o As mentioned earlier awareness is a major factor therefore there

should be some programmes and functions arranged wherein all the
business partners should be called in along with their friends and
family. This in turn would give reliance a chance to explain their
partners their policies nicely and make them feel special. The people
called along with can also be motivated to invest in the business and
huge clientele can be formed.

o Work a lot on the buildup of the already existing brand name-use it as

the primary tool.
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CONCLUSION

The study concluded:-

Reliance money has-

 Brand name & market reputation.

 Price competitiveness.
 Very fast processing.
 Good customer care.
 Flexible management system.
 A one stops shop of all financial products.
 A basket of products.

The stock broking industry has-

 Great future.
 Better investment opportunities.
 Increased money movement.
 More no. of investors.
 More no. of brokers.

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ANNEXURE

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 Bibliography

 Books
 Research Methodology (C.R.KOTHARI), 2006
 Marketing Management (PHILIP KOTLER), 2005
 Websites:
 www.reliancemoney.com
 www.nseindia.com
 www.bseindia.com
 www.moneycontrol.com
 www.investopedia.com

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