1

Project Report on
ANALYSIS OF CURRENT MARKET SCENARIO OF THE EQUITY MARKET AND BROKING HOUSES WITH SPECIAL REFERENCE TO RELIGARE SECURITIES LTD

Project Report submitted in partial fulfillment of the requirements for the award Of Master of Business Administration
Under the Supervision of

Industry Guide Mr. Shailesh Pandey

Relationship Manager Religare Securities Ltd.

Faculty Guide Ms. Neha Geol

Netaji Subhash Institute of Management Sciences New Delhi.

By

Mukesh Kumar Srivastava

To

Netaji Subhash Institute of Management Sciences.

May 2008
Registration No.1389

TABLE OF CONTENTS
1. ACKNOWLEDGEMENT 2. CERTIFICATE 3. EXECUTIVE SUMMARY 4. INTRODUCTION 5. COMPANY PROFILE a. b. c. d. e. f. g. h. i. Background of Religare Securities Limited (RSL) Business & Operations Infrastructure Management Depository Participant Services Board of Directors Products Religare Demat RSL Services 6. MAJOR COMPETITORS OF RELIGARE (in Equity Trading Segment) 7. COMPETITIVE ANALYSIS OF SECURITIES INDUSTRY 8. SWOT ANALYSIS OF RELIGARE 9. CONSUMER BEHAVIOR Characteristics of Indian consumer behavior Different segments of consumers Increasing awareness of Indian consumer influence 10. SEGMENTATION 11. RESEARCH METHODOLGY 12. QUESTIONNAIRE 13. DATA ANALYSIS 47-48 49 50-51 52-59 60-114 44 45-46 47 8 8-9 9 9-10 10-11 11 12-17 18-20 20 4 5 6 7

21-36 37-39 40-43

14. DEMOGRAPHICS 15. CROSSTABULATIONS 16. LIMITATIONS AND PROBLEMS FACED 17. CONCLUSIONS AND FINDINGS a. b. Investor Profile Marketing Strategies Adopted by Religare

115-119 120-129 130

131-132 133 134-134 136

18. RECOMMENDATIONS FOR RELIGARE 19. BIBLIOGRAPHY 20. ANNEXURES a. b. c. FAQs about trading with a DP Schedule of Charges Images of Canopy Organized at Rohini

138-141 142 143

ACKNOWLEDGEMENT
This summer trainning and project in Religare Securities Limited has been a truly remarkable experience. At the outset I would like to express my gratitude to Mr. Deepak Khurana, Branch Manager, Religare Securities Ltd Pitampura, New Delhi for providing me with gainful insights on the subject . His practical observation on the subject has helped me appreciate the importance of this subject in the current scenario. I would also like to thank my industry guide Mr.Shailesh Pandey, Relationship Manager (RM), Religare Security Ltd Pitampura New Delhi without whose untiring efforts and able guidance I would not have been able to complete this report and all those people including my colleagues and friends from Religare Securities Ltd. and elsewhere who have helped and assisted me in the successful completion of this project. Being a student of NIMS, Delhi I am thankful to my faculty guide Ms. Neha Geol, and all other faculty members for their guidance. Finally I would like to thank all others who have contributed to this effort, whom I may have missed out. Mukesh Kumar Srivastava MBA (PTU) NIMS, Delhi

CERTIFICATE
This is to certify that the project titled ANALYSIS OF CURRENT MARKET SCENARIO OF THE EQUITY MARKET AND BROKING HOUSES WITH SPECIAL REFERENCE TO RELIGARE SECURITIES LTD is an original work of the summer trainee & is being submitted as an essential part of his summer training with Religare Securities Ltd. This report has not been submitted earlier either to this company or to any other company for the fulfillment of the requirement of summer training certificate.

Shailesh Pandey
Relationship Manager Religare Securities Ltd. Netaji Subhash Place, Pitampura, Delhi-110034

EXECUTIVE SUMMARY
The securities markets in India witnessed several policy initiatives since the year 2000, which further refined the market micro-structure, modernized operations and broadened investment choices for investors. The irregularities in the securities transactions in the last quarter of the previous financial year hastened the introduction and implementation of several reforms. These reforms and developments in the securities market, which support corporate initiatives, finance the exploitation of new ideas and facilitate management of financial risks, hold out necessary impetus for growth, development and strength of the emerging market economy of India. The objective of the survey is to know the Indian consumer/investor behavior related to the investment in Equity Market. In the survey I have tried to find the factors influencing the investment decision of the consumer/investor and also the factors influencing his decision to select a Broker. Some of the factors considered are risk and returns, services provided by brokers, promotional schemes, location of broker, brokerage charged, customized services and impressive advertising during selection of a brokerage firm. As advertisement are considered to be the major force behind investment decisions of the consumer hence through this survey I have tried to find out the effectiveness of the add campaigns of various Broking companies. Besides the investing decision I have tried to go inside the mind of the investors by asking them some attitudinal questions. Also I have compared the broking companies on different parameters such as risk and returns, services provided by brokers, promotional schemes, location of broker, brokerage charged, customized services and impressive advertising. This survey is conducted in Delhi NCR region across various age groups with different income levels & occupations. The sample size taken is 500.

Introduction
Religare Securities Limited is a company managed and controlled by Ranbaxy promoters and presently among the leading brokerage house of India. The primary focus of RSL is to cater to services in Capital Market Operations to Institutional Investors. The Company is a member of the National Stock Exchange (NSE) and OTCEI. The growing list of financial institutions with which RSL is empanelled, as approved Broker is a reflection of the high levels of services maintained by the Company. As on date the Company is empanelled with Alliance Capital AMC, UTI, IDBI, IFCI, SBI, BOI-MF, Punjab National Bank, PNB-MF, Oriental Insurance, GIC, UTI-Offshore, ICICI, HDFC, Canbank MF, Punjab & Sind Bank, Pioneer ITI, SUN F&C, IDBI Principal, Prudential ICICI, ING Baring and J M Mutual Fund. Religare in recent past has been constantly innovating in terms of the product and services, which it offers, and in this respect it has started a premium NRI, FIs, HNIs and Corporate Servicing group. This group specifically caters to the growing investment needs of these premium client categories by taking all their portfolio investment decisions depending upon their risk / return parameter. Religare has a very credible team in its Research & Analysis division, which not only caters to the need of their Institutional clientele but also gives their valuable input to Investment Dealers. Religare is also giving in house depository services to its clientele and it is among one the leading depository services among country. Presently it manages more than Rs.3500 Crores worth of shares under its electronic custody. Religare among capital market investment fraternity is the most vibrant place in terms of information and performance and every day it is consolidating its efforts to provide more customized services to its clients. Religare is in the process of developing relationship with like minded corporate and individuals who can value Religare philosophy of financial care and in this respect lays an emphasis for a personal meeting with the clients as convenient to them.

COMPANY PROFILE
Religare Securities Ltd. (RSL) is a wholly owned subsidiary of Religare Financial Services Ltd. (RFSL), a Company promoted by the late Dr. Parvinder Singh, Ex-CMD of Ranbaxy Laboratories Ltd. The primary focus of RSL is to cater to services in Capital Market Operations to Institutional Investors. The Company is a member of the National Stock Exchange (NSE) and OTCEI. The growing list of financial institutions with which RSL is empanelled, as approved Broker is a reflection of the high levels of services maintained by the Company. As on date the Company is empanelled with UTI, IDBI, IFCI, SBI, BOI-MF, Punjab National Bank, PNB-MF, Oriental Insurance, GIC, UTI-Offshore, ICICI, HDFC, Canbank MF, Punjab & Sind Bank, Pioneer ITI, SUN F&C, IDBI Principal, Prudential ICICI, ING Baring and J M Mutual Fund.

BUSINESS & OPERATIONS

BUSINESS Over a period of time RSL has recorded a healthy growth rate both in business volumes and profitability as it is one the major players in this line of business. The business thrust has been mainly in the development of business from Financial Institutions, Mutual Funds and Corporate. OPERATIONS The operations of the company are broadly organized along the following functions. Research & Analysis This group is focused on doing daily stock picks and periodical scrip \ segment specific research. They provide the best of analysis in the industry and are valued by both their Institutional and Retail clientele. Marketing This group is focused on tracking potential business opportunities and converting them into business relationships. Evaluating the needs of the clients and tailoring products to meet their specific requirements helps the company to build lasting relationships. Dealing Enabling the clients to procure the best rates on their transactions is the core function of this group.

9 Back Office This group ensures timely deliveries of securities traded, liaison with stock exchange authorities on operational matters, statutory compliance, handling tasks like pay-in, payout, etc. This section is fully automated to enable the staff to focus on the technicalities of securities trading and is manned by professionals having long experience in the field.

INFRASTRUCTURE

Offices The company has offices located at prime locations in Mumbai, New Delhi, Kolkatta and Chennai. The offices are centrally located to cater to the requirements of institutional and corporate clients and retails clients, and for ease of operations due to proximity to stock exchanges and banks. Communications The company has at its disposal, an efficient network of advance communication system and intends to install CRM facility; besides this it is implementing interactive client information dissemination system which enables clients to view their latest client information on web. It has an installed multiple WAN to interconnect the branches to communicate on real time basis. The company is equipped with most advanced systems to facilitate smooth functioning of operations. It has installed its major application on IBM machines and uses latest state of art financial software.

MANAGEMENT
Mr. Sunil Godhwani is Chief Executive Officer and Managing Director of Religare Securities Limited. He is also the CEO & MD of the parent company Religare Financial Services Limited and is managing the entire operations of both the companies.

10 CEO is supported by various HODs who are creditable professional of their respective fields and they are further working with team of professionals consisting of Chartered Accountants, MBAs with varied experience in financial services and stock broking functions. The Board of Directors consists of Mr. Harpal Singh as Chairman and Mr. V.K. Kaul, Mr. Malvinder Mohan Singh, Mr. Shivinder Mohan Singh as Directors.

DEPOSITORY PARTICIPANT SERVICES

Religare Securities Ltd. has also ventured into depository services to cater to its clients and is among leading depository services providers having more than 3500 Crore worth of security under its custody. Why should one choose RSL as his/her financial partner? A summary of their competitive advantages Participant on the countrys premier exchange: Religare is a member of the countrys premier stock exchange The National Stock Exchange of India (NSE). Clearing membership on Capital & Derivatives segments: It has clearing memberships on both the Capital Market and Derivatives segment of the exchange. They are also authorized to trade the retail debt market. Depository Participants with NSDL & CDSL: They are depository participants with the countrys premier depository service - National Securities Depository Limited (NSDL), as well as with the only other depository with a countrywide reach - Central Depository Services Limited (CDSL). Leading private sector bank as partner: Their banking partners are HDFC and ICICI Bank The foremost private sector banks in the country, that have the most technologically advanced infrastructure in the country, with Internet banking allowing access to information 24 X 7. The new banking partners added to the list are UTI and PNB and much more premier banks are yet to be added with talks under way. Bloomberg Information Services: The worlds two best information services are Bloomberg LP and Reuters. These are prohibitively expensive for all but mutual funds and financial institutions to own terminals of, and subscribe to. Religare however has two connections to the Bloomberg Information Service, the premier service, both in Delhi and Mumbai, and these provide them information ahead of the general public, and at par with the financial institutions. Thwy have access to breaking news from across the globe, and across asset classes, and superior research and analysis capabilities. Prime Office Locations: Religare has prime office locations in the nations political capital and the business capital Delhi and Mumbai, in the heart of the city.

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Research Capabilities: Religare has a dedicated team of analysts in their Bombay office and now also in their Delhi office at Nehru Place They provide fundamental analysis of stocks and markets, which are fundamentally strong, and provide above market returns to investors, but over a slightly longer time frame Typically 6 months and above. Technical Analysis: A daily technical newsletter is published by their in-house technical analysts, who are recognized leading practitioners of the science. They have a success rate of over 73%. They track the progress of the calls on a real-time basis, and advise of any change in the profit points or stop loss levels. All Services under one roof: India has moved to a T+2 settlement system, where all trades and settled on a rolling basis. However this gives the clients no time to arrange deliveries to their broker, through a separate depository participant. Religare, being a trading-clearing member, as well as a depository participant, allows seamless transfer of securities under the same roof, with minimum delay, and constant monitoring.

Mr.Harpal Singh

Mr.Vinay Kumar Kaul

More than 27 years of experience in the corporate sector

More than 28 years of experience in Corporate Finance. DirectorRanbaxy Laboratories Ltd.,Fortis Healthcare Limited and Religare Financial Services Limited

Mr.Shivinder Mohan Singh

Mr.Malvinder Mohan Singh

Joint Managing Director of Fortis Healthcare and SRL Ranbaxy

Director Ranbaxy Laboratories Limited Chairman-Fortis Healthcare Limited and Religare Financial Services Limited

Director in Religare Financial Services Limited and Religare Comdex Limited.

President, Pharmaceuticals and Executive Director at Ranbaxy Laboratories Limited

Mr. Sunil Godhwani

Director in Fortis Healthcare Limited, Religare Financial Services Limited and Religare Comdex Limited.

Chief Executive Officer and Managing Director of Religare Securities Limited

Experience of managing large businesses for more than 15 years.

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Products
The main products which are dealing by Religare securities Ltd are as follows:1) Equity(Shares) 2) Mutual Funds 3) Derivatives(F&O) 4) Commodities 5) Portfolio Management Services(PMS) 6) Corporate Financing (Investment Banking) 7) Personal Loans (to be launched in August, 2006)

Equity (Shares)
In simple Words, a share or stock is a document issued by a company, which entitles its holder to be one of the owners of the company. A share is issued by a company or can be purchased from the stock market. www.religare.in is the most comprehensive website, which allows you to invest in shares, mutual funds, derivatives (Future and Option) and other financial products.

Trading in Shares
Religare offers various options while trading in shares. Cash Trading This is a delivery based trading system, which is generally done with the intention of taking delivery of shares Margin Trading The client can also do an intra settlement trading up to 2 times of the fund available wherein he takes long buy / short sell position in stocks with the intention of squaring off the position within the same day settlement cycle. Through margin you can do an intra settlement trading up to 4 to 10 times your available funds, wherein you take long buy/ short sell position in stock with the intention of squaring off the position within the same day settlement cycle Margin PLUS will give much higher leverage in your account against your limits.

13 BTST Buy Today Sell Tomorrow (BTST) is a facility that allows you to sell shares even on 1 st and 2nd day after the buy date, without waiting to have the receipt of shares into your Demat account. Call Trade CALL Trade allows you to call on a local number & trade on the telephone through Religares Customer Service Executive. Trading on BSE/NSE: Through Religare the share can be traded on NSE as well asBSE.

IPOs
The client can also invest in Initial Public Offerings (IPOs) and bonds online without going through the hassles of filling any application form paperwork. In-depth analysis of new IPOs issues, which are about to hit the market and analysis on these are also provided in Religare. IPOs calendar, recent IPOs listings, prospectus, and IPOs analysis are the few of the features, which helps the investor keep on top of the IPO market.

Derivatives (F & O)
Derivatives (Futures & Options) are ideal instruments to protect an investors portfolio against risk. The client can trade with index movements, hedge and leverage his portfolio by limiting risk but keeping the upside unlimited. Trading in Derivatives FUTURES Through Religare the investor can now trade in index and stock futures on the NSE. In future trading, he takes buy/sell index contracts having a longer contract period of up to 3 months. Trading in Future is simple during course of contract life; the price moves in favor, investor makes profit.

14 Presently only selected stocks, which meet the criteria on liquidity and volume, have been enabled for future trading. OPTION An option is a contract, which gives the buyer the right to buy or sell shares at a specific price, on or before a specific date. For this, the buyer has to pay to the seller some money, which is called premium. There is no obligation on the buyer to complete the transaction if the price is not favorable to him. To take the buy/ sell position on index options you have to place certain %age of order value as margin. With options trading, you can leverage on your trading limit by taking buy/sell positions much more than what you could have taken in cash segment. The Buyer of a call option has the right but not obligation to purchase the underlying Asset at the specific strike price by paying a premium where as the seller of the Call has the obligation of selling the Underlying Asset at the specific strike price. By paying lesser amount of premium, you can create position under OPTIONS and take advantage of more trading opportunities.

Mutual Funds
Mutual Fund is an investment company that pools money from shareholders and invests in a variety of securities, such as stocks, bonds and money market instruments. Most open-end mutual funds stand ready to buy back (redeem) its shares at their current net asset value, which depends on the total market value of the fund's investment portfolio at the time of redemption. Most open-end mutual funds continuously offer new shares to investors. Also known as an open-end investment company, to differentiate it from a closed-end investment company. Mutual funds invest pooled cash of many investors to meet the fund's stated investment objective. Mutual funds stand ready to sell and redeem their shares at any time at the fund's current net asset value: total fund assets divided by shares outstanding. In Simple Words, Mutual fund is a mechanism for pooling the resources by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in offer document. Investing in Mutual Funds Religare brings same convenience while investing in Mutual Funds as hassle free and less paperwork investing. The investor can now invest in any mutual fund like standard charter MF, Prudential

15 ICICI MF, Alliance MF, Franklin Templeton MF, Sundram MF, Birla sun life; HDFC MF, Principal MF, etc are the mutual funds available for investment. One can invest in mutual funds without the hassles of identity proof. The client also gets detailed and timely information of performance of his investment through online current NAV. Purchase: Investor may invest / purchase prudential icici MF, JM MF, ALLIANCE MF, FRANKLINE TEMPLETON MF, SUNDARAM MF, BIRLA SUN LIFE MF, HDFC MF and STANDARD CHARTERED MF without hassles of identity proof. Redemption: Whenever the investor requires his money, he gets it easily. For that purpose he puts on signature on the redemption form. He gets his money by on line or by physical process (cheque). Systematic investment plan (SIP): SIP allows you to invest a certain sum of money over a period of time periodically. Just fill in the investment amount, the period of investment and the frequency of investing and submit. Religare does the rest of the investment automatically. Systematic withdrawal program: This allows you to withdraw certain Sum of money over a period of time periodically.

Commodity
Commodities as a word originated from the French word commdite meaning benefit or profit. Rightly so! The continuously growing turnover which commodities market has seen is incredible, benefiting both producers and buyers. These amazing results have transformed commodities as a most sought-after asset class. And this has caught attention of the whole world. Commodities market is particularly significant to our country as India is essentially a commodity based economy. Therefore, it should not be surprising to see that Indian Commodities Market is also taking giant strides, growing at a scorching pace and is well all poised to occupy its rightful place in the world. This has provided Indian investors with new emerging investment opportunities in the arena of commodities. Commodity Derivatives trading in India is now done through the electronic trading platform of two popular exchanges NCDEX (National Commodity & Derivative Exchange Limited) and MCX (Multi Commodity Exchange). The various commodities being traded on the exchanges include precious metals, crude oil, agro-commodities amongst others.

16 Religare Comdex Limited is a member of both the exchanges (MCX & NCDEX) that allows one to trade in all the commodities traded in both the exchanges. Presently, trading in commodities is restricted to futures contracts only.

Portfolio Management services (PMS)

In PMS Religare takes care of all type of investment of the client. There are different type of product in which client can invest their money which are as following:1. Panther 2. Leo 3. Elephant 4. Tortoise 5. Caterpillar Advantages of PMS: Customized Portfolio Transparency Benefit from tactical cash management High level of client interaction Cost efficient Hassle free operation Diversification across or within the asset class SEBI regulated

How Religare deals with equity trading and the services provided to the customers:Religare Securities Ltd Provides best services to its customers for equity trading in comparison to other Financial Securities Companies. These services are as followsOnline trading facilities with ODIN terminal. Odin terminal is wave based software. Client can easily download the terminal through Religare web site. No extra charges are taken for the use of this terminal. Through this terminal/software you execute your order within 2 seconds. In this terminal one gets both NSE&BSE on-line at same time and the clients can do trading in both NSE&BSE at the same time.

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Individual Client: Demat A/c opening charges: Rs 500/- (maintenance Charges Rs 250/-) Trading A/c free for life time Trading through offline or website. (www.religare.in) NSE & BSE both are online. Live applet for watching prices & trading purposes. Brokerage: Cash brokerage: - Delivery: 0.50%, Intraday: 0.05% (Negotiable) Exposure: 4 to10 times (For Intraday) 2 times (For Delivery) F&O Brokerage: - Buy & Sell 0.05% (Negotiable)

Other features For the fund transfer and withdraw, we have tie-up with two banks ICICI Bank and HDFC Bank. If you are having bank account in one of them, you can transfer the funds and withdraw the funds online same day. Settlement of trades follows T+2 transaction cycle. Freedom from paperwork, trading facilities is completely online. SMS alerts on mobile phones. Apart of that we have our dedicated team to look after your Portfolio, Mutual Funds, and Commodities.

Documents Required to open an Account:a. Two coloured Photographs (self signed). b. For identification Proof- Voter ID Card/ Driving License/ Passport/ PAN Card (Compulsory) any one. c. For residential proof:- Bank statement/ Voter ID Card/ Ration Card/ Driving License/ Passport/ Telephone or Electricity Bill statement (any one) d. One cancelled cheque leaf (For MICR No. record) e. Latest Bank Statement/ Front page of passbook (Showing Name, Address, A/c No.) The investor can also deposit the initial margin money at the time of opening of account.

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RELIGARE DEMAT
Account opening: Opening a DP account with RELIGARE

You can open a Depository Participant (DP) account, through a Religare branch. There is a fee of Rs. 500/- which is charged at the time of opening a Demat + Trading account.

All investors have to submit their proof of identity and proof of address along with the prescribed account opening form. 1. A copy of PAN card: A document made compulsory by SEBI 2. Proof of identity: You can submit a copy of Passport, Voters ID card, Driving license or PAN card with photograph. 3. Proof of address: You can submit a copy of Passport, Voters ID card, Driving license, PAN card with photograph, Ration card or Bank passbook as proof of address. You must remember to take original documents to the DP for verification. 4. Passport-size photograph.

Dematerialization: Dematerialization is the process by which a client can get physical certificates converted into electronic balances maintained in his account with the DP. Features:

Holdings in only those securities that are admitted for dematerialization by National Securities Depository Ltd (NSDL) can be dematerialized. Structure of holding in the securities should match with the account structure of the depository account. Now shares in different order of names can also be dematted.

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If the shares are in the name of X and Y, the same cannot be dematerialized into the account of either X or Y alone. However if the shares are in the name of X first and Y second, and the account is in the name of Y first and X second, then these shares can be dematerialized in this account. Only those holdings that are registered in the name of the account holder can be dematerialized. Physical shares which have not been transferred and are still there with a transfer deed cannot be dematted. Only a few companies have been given the permission to offer Transfer-cum-Demat. The list of these companies can be viewed here.

Trades: For all sales made by clients, the shares will have to be given to the broker, so that the Pay In can be made by the broker to the stock exchange concerned. For that it's essential that the shares be transferred to the account of the broker well before the deadline date. You must confirm with your broker the settlement date and settlement number and then submit your instructions to your DP. Also it's important to give the instructions to your DP as early as possible. Pledge: Pledge enables you to obtain loans against your dematerialized shares. So you get liquidity without having to sell your shares. A highly simplified procedure may be availed of for pledging of securities in the electronic mode. The pledged securities continue to be reflected in the DP account of the clients (pledgor) but the concerned securities are "blocked" and cannot be used for any transactions. As and when the pledge is to be removed, based on confirmations received from both the pledgor and the pledgee, the blocked securities will be released to "Free Balance" of the account holder. A very big advantage of using pledges in the electronic mode is that the securities continue to be in your account and therefore all benefits--viz Dividend, Bonus and Rights--accrue to the holder, ie you and not the bank (pledgee). Corporate benefits: Corporate benefits are benefits given by a company to its investors. These may be either monetary benefits like dividend, interest etc or non-monetary benefits like bonus, rights etc. NSDL facilitates distribution of corporate benefits. It's important to mention your correct MICR No and attach copy of the cheque leaf with your account opening form. NSDL is planning to distribute all cash corporate benefits to bank accounts directly.

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Schedule of charges for Depository services

ARTICULARS
Account operations - a/c opening - annual charges - Documentation - One time charges Transaction charges - buy - sell Pledge - creation / closure Delivery Instruction Booklet Dematerialization Rematerialization Courier charges for Demat / Remat

R-ALLY
Nil Rs. 250/Rs. 60/Nil Nil Rs. 25/- or 0.01% value of securities whichever is higher Rs. 50/- or 0.01% value of securities whichever is higher Rs. 20/- per booklet Rs. 2/- per certificate Rs. 20/- per request + courier charges. Rs. 30/- per request

R-ACE
Nil Nil Nil Rs. 299/- or Rs. 499/- or Rs. 999/Nil Rs. 25/- or 0.01% value of securities whichever is higher Rs. 50/- or 0.01% value of securities whichever is higher Rs. 20/- per booklet Rs. 2/- per certificate Rs. 20/- per request + courier charges. Rs. 30/- per request

RSL.Services CORE
Equity Trading Derivative Trading Commodities Trading

FACILITATOR
Margin Financing NRI Desk Management Private Client Mgmt

ADVISORY
Research & Technical Analysis Portfolio Management

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Major Competitors of Religare Securities Ltd

(In Equity Trading Segment)
The main competitors of Religare in the area of securities market are as follows:1. Sharekhan 2. Indiabulls 3. IL & FS Securities Ltd. 4. ICICI Direct.com 5. Karvy 6. 5 Paisa.com 7. HDFC Securities Ltd. 8. Alankit Securities Ltd 9. Motilal oswal 10. Kotak Securities Ltd

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Sharekhans Services Sharekhan, one of India's leading brokerage houses, is the retail arm of SSKI. With over 240 share shops in 110 cities, and claiming India's premier online trading portal www.sharekhan.com, the customers enjoy multi-channel access to the stock markets.

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Individual Client Demat A/c + Trading A/c opening charges: There is two type of accounto Classic A/c opening charges- Rs 750/o Speed trade A/c opening charges- Rs 1000/ (Rs 500/- per month of speed trade A/c. If Brokerage is Rs 1500/- of 3 month then RS 500/- will be off and if not then Rs1500/- and brokerage will charged.) AMC Charges- Rs 300/- per annum. Brokerage Cash brokerage: Exposure: F&O Brokerage: Delivery: 0.50%, Intraday: 0.10% (Negotiable) (min. 0.05% on intraday & 0.50% on delivery) 4 to10 times (For Intraday) 2 times (For Delivery) Buy & Sell 0.05% (Negotiable)

In Classic A/c Terminal is waive based and it shows 5 portfolios. You can see only 26 scrip (shares) at a time. There is also no any graph is displays and customer have to login in every 10 minute. In Speed Trade A/c Terminal is internet based/ Software based and customer can see 500 scrip (shares) at a time. Trading through offline or website. (www.sharekhan.com) NSE & BSE both are online. Live applet for watching prices & trading purposes.

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Indiabulls Financial Services Ltd. is a public company and listed on the National Stock Exchange, Bombay Stock Exchange, Luxembourg Stock Exchange and London Stock Exchange. The company ranks at 82nd position in the list of most valuable companies in India has a market capitalization of approx US $ 800 million. The consolidated net worth of the company is approx US $ 400 million. Three Engineers from IIT Delhi have promoted Indiabulls. The company strives for rapid growth in profits, leadership in the retail marketplace and better returns to its shareholders. Indiabulls, along with its subsidiary companies, offer consumer loans, brokerage and depository services, personal loans, home loans and other financial products and services to the retail markets. Their Retail Equity Business caters to the needs of individual Indian and NRI investors. Indiabulls offers broker assisted trade execution, automated online investing and access to all IPOs Through various types of brokerage accounts, Indiabulls offers the purchase and sale of securities which includes Equity, Derivatives and Commodities Instrument listed on National Stock Exchange of India Ltd.(NSEIL), The Stock Exchange, Mumbai(BSE) and NCDEX. Features of Power Indiabulls: Live Streaming Quotes Fast Order Entry Tic by Tic Live Charts Technical Analysis Live News and Alerts Extensive Reports for Real-time Accounting

Demat + Trading account opening charges For Offline A/c opening700/For Online A/c opening1450/(An Offline Demat A/c holder can not do online trading) Brokerage For intraday trading0.05% For Delivery trading0.50% (Brokerage is negotiable and it based on the volume of client)

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Exposure For intraday trading For delivery trading -

5 10 times 2 times

Funding Interest rate is 19% per month for funding Services No SMS alert provide A trader can find out the information about share market only by to call dealers Account opening time- One Weak Online & offline trading facilities are different.

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IL&FS Investsmart Limited (IIL) is a financial service organization providing individuals and corporate with customized financial management solutions. New Demat Account opening has been stopped by SEBI. Brokerage For Intraday TradingFor Delivery TradingAMC Charges: Rs 500/Exposure For Intraday TraderFor Delivery Trader4-5 times 2 times 0.04% 0.40%

Services Research Report- Free Trading A/c- Free Online Services- Free IPO- Online Tie up with HDFC Bank.

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Customer Service Features It is a complete online broking system with no human intervention between the investor and the exchange. Viewing Account statement and Bill Summary of transactions online using bills accounts. View Digital contract Notes instantly. View various charges through the Fee schedule option. Giving investors feedback of viewpoint through the Viewpoint online. Integrated Bank a/c + Demat a/c + Trading a/c is a convenience to the investor. Brokerage charges ICICIdirect.com account can be opened for a one-time non-refundable fee of RS 750/The rates vary according to the volume of trades done by you. Brokerage on trades done in CASH Segment: Total Eligible Turnover (Volume of Transaction) per quarter Trades above Rs.5,00,00,000/(Above Rs. 5 Crore) Trades between Rs.2,00,00,001/- and 5,00,00,000/- (Rs. 2 Crore to 5 Crores) Trades between Rs.1,00,00,001/- to Rs. 2,00,00,000/- (Rs. 1 Crore to Rs 2 Crore) Rs. 50,00,001/- to Rs.1,00,00,000/- (Rs. 50 lacs to Rs. 1 Crore) Rs. 25,00,001/- to Rs.50,00,000/- ( Rs. 25 lacs to Rs. 50 lacs) Brokerage 0.25% 0.30% Second Leg of Trades* Nil Nil Effective Brokerage per leg for squared off trades 0.125% 0.15%

0.35%

Nil

0.175%

0.45% 0.55%

Nil Nil

0.225% 0.275%

28 Rs. 10,00,001/to 0.70% Rs.25,00,000/- ( Rs. 10 lacs to less than Rs. 25 lacs) Less than Rs. 10,00,000/- (Rs. 0.75% 10 lacs) Nil 0.35%

Nil

0.375%

For NSE Trades Brokerage is calculated on a per share basis and is rounded off to the fourth decimal. For BSE Trades Brokerage is calculated on a per share basis and is rounded off to the second decimal. The minimum value of the order accepted is Rs. 500/- and the minimum brokerage is Rs. 25/- per trade. The minimum brokerage is Rs.25/- or 2.5% of the trade value whichever is higher. Service Tax and Securities Transaction Tax (STT) is charged additional as per the applicable rate. The brokerages rates of ICICIdirect.com are inclusive of demat transaction charges, service taxes and courier charges for contract notes. It ranges from 0.01 to 0.1 for margin trades, to 0.75 on delivery-based trades. Demat account charges For all trades done through ICICIdirect.com, there are NO separate charges. However, for all other trades and services like demat, pledge etc, the charges are as per the existing rate card of ICICI demat. An annual maintenance fee of RS 500/- per account is charged. However, the first year annual maintenance charges are waived for on all accounts opened through ICICIdirect.com. For bank account, a minimum quarterly average balance of RS 5000/- needs to be maintained.

29

Kotak Securities Ltd. is one of India's leading stock broking house with a market share of around 8%. Kotak Securities Ltd. has been the largest in IPO distribution. Kotak Securities Ltd is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL), providing dual benefit services wherein the investors can use the brokerage services of the company for executing the transactions and the depository services for settling them. Kotak Securities Limited manages assets over 2500 crores of Assets under Management (AUM). Type of accounts in Kotak Securities Ltd. a. Kotak Gateway: Ideal for starters in the equity markets. b. Kotak Value: Tailor-made to meet the needs of the experienced investor. c. Kotak Privilege Circle: A line up of premier trading services to suit the needs of investors. d. Kotak High Trader: Intra-day trading account with Auto-square off that lets the investor take higher exposures. e. Kotak Freeway: Unlimited trading for a fixed monthly fee. Online Account Types a. Twin Advantage / Green Channel: 2 DPs, Limit against shares b. Free Way: Flat Rs 999/- Cover Charges p.m., 0.03% per transaction c. High Trader: 6 Times Exposure cash & Derivatives, Auto sq off 2:55 d. Cash Expressway: Spot payment, additional 0.5% charges Pricing of Kotak Account Opening: Demat: Initial Margin: Min. Margin Retainable:

Rs.500/Rs.22.5 p.m. Rs.5000/- (Compulsory) Rs.100/-

Brokerage Slab wise Higher the volume, lower the brokerage. Even older customers (on 0.25% & 0.40%) have been moved to the slab wise structure. For intraday trading0.05% For Delivery trading0.50% (Brokerage is negotiable and it based on the volume of client)

30 Exposure For intraday trading - 5 10 times For delivery trading - 2 times Funding Interest rate is 19% per month for funding Services No SMS alert provide A trader can find out the information about share market only by to call dealers Account opening time- One Weak Online & offline trading facilities are different.

31

HDFCsec is a brand of 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. Products & Services HDFC is a one of the leading online broking houses in India, with a dominant position in both institutional and retail broking, 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, its service range will be enhanced to include the following: Online Buying and selling of select mutual funds units Online Purchase of insurance policies Facilitating asset financing (house and car loans for instance). These products and services would of course be provided subject to the prevailing rules & regulations of HDFCsec, the regulatory body, the Securities Exchange Board of India (SEBI) and the relevant stock exchanges. Online Account Type HDFC Online Trading A/c: Plain Vanilla Account with focus on 3 in 1 advantage. Pricing of HDFC Account A/c Opening: Rs.750/Demat: Nil, 1st year charges included in Account Opening Initial Margin: Rs.5000/- for non HDFC Bank customers (AQB) Brokerage Trading: Delivery: 0.15%* each side + ST 0.50%** each side + ST

* Rs 25 Min Brokerage per transaction ** Rs 8 Min brokerage per transaction

32

Motilal Oswal Securities is a leading research and advisory based stock broking house of India, with a dominant position in both institutional and retail broking. There are various other categories where it has been rated number one most independent research, sales and service etc by the Brokers Poll. In March 2006, AQ Research, a firm that analyses the accuracy of a brokers research call, declared Motilal Oswal Securities the best research house for Indian stocks. The company was founded in 1987 as a small sub-broking unit, with just two people running the show. Focus on customer-first-attitude, ethical and transparent business practices, respect for professionalism, research-based value investing and implementation of cutting-edge technology have enabled us to blossom into an almost two thousandmember team. The retail business unit provides equity investment solutions to more than 150,000 investors through 900 outlets spanning 340 cities and 24 states. They provide advicebased broking (equities and derivatives), portfolio management services (PMS), eBroking, depository services, commodities trading, IPO and mutual fund investment advisory services. Motilal Oswal Securities invests almost 5-10% of its revenue on equity research and hires and trains the best resources to become advisors to its valued clients. Mr Raamdeo Agrawal, Managing Director The organization finds its strength in its team of young, talented and confident individuals. Qualified professionals carry out different functions under the able leadership of its promoters, Mr.Motilal Oswal and Mr. Raamdeo Agrawal, Managing Director.

Services
Depository Services In the times of T+2 having a demat account linked to the trading account becomes really convenient. The non-trading members also can avail of our Depository services. The investor receives regular account reports and an efficient service at all times. MOSt is a member of both NSDL and CDSL and the service is available at all our outlets in India. Derivatives Derivatives (Futures & Options) are ideal instruments to protect the portfolio against risk. One can trade with index movements, hedge and leverage his portfolio by limiting risk but keeping your upside unlimited.

33

Equity Research Equity Research is an inherent strength of MOSt. MOSt believes in picking investment opportunities where the underlying value is higher than the market price. A feather in the cap, Asiamoney Brokers Poll 2005 has ranked us the best Indian brokerage firm. Brokerage For Intraday TradingFor Delivery TradingAMC Charges: Rs 500/Exposure For Intraday TraderFor Delivery Trader4-5 times 2 times 0.03% 0.30%

Services Research Report- Free Trading A/c- Free Online Services- Free IPO- Online Tie up with HDFC Bank.

34

5paisa is the trade name of India Infoline Securities Private Limited (5paisa), member of National Stock Exchange and The Stock Exchange, Mumbai. 5paisa is a wholly owned subsidiary of India Infoline Ltd, Indias leading and most popular finance and investment portal. 5paisa has emerged as one of leading players in e-broking space in India. Their keyproduct offerings are as follows: Investor Terminal (IT) Investor Terminal is recommended for infrequent investors, who fall into the "Buy and Hold" school of investing, made very popular by Warren Buffet - the Oracle of Omaha. A typical retail investor is a busy corporate executive or a businessmen who makes equity investments for long term and does not trade everyday. This product does not have intraday tick by tick charts. Trader Terminal (TT) Trader Terminal is for the dedicated day traders, who churn their portfolio on minor movements in the market, sometimes several times a day. Their rapid and high volume trading requires a powerful interface for lightning fast order execution. They monitor marked to market positions on a minute-to-minute basis, with facilities for panic exit. They need all the analysis - fundamental and technical, market gossip, price and volume information and much more - all at one click. Pricing for Retail Clients Investor Terminal Account Opening: Demat 1st Year: Initial Margin: Min Margin Retainable : Brokerage Trading: Delivery: Rs.500/Rs.250/Rs.2500/-(Compulsory) Rs.1000/0.10% each side + ST 0.50% each side +ST

35

Pricing for HNI Clients Trader Terminal Account Opening: Demat 1st Year: Initial Margin: Min. Mrgin Retainable: Brokerage Trading: Delivery: Rs.500/Rs.250/Rs.5000/- (Compulsory) Rs.1000/0.10% each side +ST 0.50% each side +ST (Negotiable to 0.50% each side & 0.25%)

Account Access Charges Monthly Rs.800/-, adjustable against brokerage Yearly Rs.8000/-, adjustable against brokerage

36

Online DEMAT Services is one of the key features of this company. Electronic Custodial Services: Convert physical holding into electronic holding (which is called "dematerialisation" of securities) Keeping custody of the holdings in electronic form. Transfer the shares in the electronic form from one account to another. Facilitate pledge of investors electronic securities. Give electronic credit of new share allotments such as public issues, bonus, rights etc. Convert electronic holdings into physical holding (which is called "rematerialisatoin of securities") Their Demat A/c opening now being stopped by SEBI. Pricing of Karvy Account A/c Opening: Rs.350/Demat: Nil, 1st year charges included in Account Opening Margin: Rs.10000/- to be kept as a security. Brokerage Trading: Delivery: 0.15%* each side + ST 0.50%** each side + ST

* Rs 10 Min Brokerage per transaction ** Rs 25 Min brokerage per transaction

37

COMPETITIVE ANALYSIS OF SECURITIES INDUSTRY

1. Entry barrier:
Past low entry-barrier: Since the early '80s Indian policy makers and politicians have placed tremendous faith in the public equity market. Partly as a result of lack of state resources, partly because of pressure from various segments to `develop' the Indian capital markets, businessmen have been encouraged to tap the public savings directly by issuing equity. The encouragement primarily came in the form of low entry barrier. As long as you could hire a good merchant banker and as long as the equity market was buoyant, even small companies could get listed. The result has been a huge surge of listed companies. Current Entry-barrier: In 1995-96 the entry barrier was effectively raised to Rs 10 crore of post issue-listing. At one stroke this eliminated a lot of companies from accessing the public market. How many have a Rs 10 crore capital - among those who have not already gone public during the free-for-all till 1995? Not many. As the security industry is highly depends on capital market, so entry barrier of the industry is also decreasing.

2. Threat of Entry:
Factors that determine the threat of entry include capital requirements, economies of scale, switching costs, and brand value and uncertainty about future. Brand identity is important in the share broking sector, and benefits larger firms. Major broking firms allocate considerable resources to marketing efforts. Frequent introductions of new schemes and services and other incentives have been successful in enticing investors or clients to trade with certain firms. These factors can often be strong enough to cause a customer to choose one firm over another -- even when the other firm offers a lower brokerage charge.

3. Availability of Substitutes :
The third factor affecting industry competition is the availability of substitutes. The relative price of substitutes and the buyer propensity to substitute have effects on the industry. Likely substitutes for investment in stock market are bank deposit, post office deposits and investment through personal lending. Although there is a high return in the

38 capital market but there is high risk also. So if people are not interested in capital market then the share broking firm are of no use. The threat of substitutes has to do with time, money, personal preference, and convenience in the share broking industry.

4. Competitive Rivalry:
The final factor is competitive rivalry. Intensely competitive industries generally earn low returns because the cost of competition is high or buyers are receiving the benefits of lower prices. Factors that affect competitive rivalry include industry growth, fixed costs, brand identity, and barriers to exit. The security industry is growing day by day. So the rivalry levels of different competitors in the industry is rapidly growing.

5. Bargaining power of supplier

The MEMBER may insist the CLIENT to deposit interest-free margin money as a percentage of the price of securities proposed to be purchased, unless the CLIENT already has an equivalent credit with the MEMBER. The MEMBER may insist the CLIENT to deposit interest-free margin money as a percentage on the price of securities proposed to be sold, unless the MEMBER has received from the CLIENT the securities in its pool account prior to such sale or has received the securities with valid transfer documents to the Members satisfaction prior to such sale. The MEMBER is authorized to raise contract notes, debit notes etc. on the CLIENT and recover any amount due from the CLIENT in connection with the regular business. The contract notes issued by the MEMBER in the electronic form with digital signature is fully valid under the SEBI /Exchange rules and is binding on the CLIENT and is valid mode of delivery of the same. The MEMBER shall send the contract note in physical form or digital form to the CLIENT within 24 hours of the execution of the Clients transaction or at such interval as may be required by the Exchange from time to time, via mail, email , fax, courier, Registered A.D, oral communication or otherwise at the postal address, telephone/fax numbers or e-mail addresses intimated by the CLIENT to the MEMBER. The CLIENT understands that it is his/her/its responsibility to review the trade confirmation upon its first receipt. Any objection should be informed in writing within twenty-four hours of such confirmation. In all cases, the MEMBER reserves the right to determine the validity

39 of the Clients objection to the transaction. The CLIENT agrees that the MEMBER will not be responsible for the non-receipt of the trade confirmation due to any change in the correspondence address/ telephone number or email address of the CLIENT, the CLIENT not having intimated to the MEMBER. The MEMBER shall also send the Order/Trade confirmation slip through e-mail to the CLIENT at his/her request, within (time period as specified by the CLIENT) from the time of execution of order/ trade on the NEAT/CTCL system, as the case may be. The CLIENT agrees that the information sent by MEMBER by E-mail is deemed to be a valid delivery of such information by the MEMBER. The MEMBER may at its sole discretion prescribe the payment of margin in the form of cash instead of securities. The CLIENT accepts to comply with the Members requirement of payment of Margin, failing which the MEMBER may sell, dispose, transfer or deal in any other manner the securities already placed with it as Margin or square off all or some of the positions of the CLIENT as it deems fit in its discretion without further reference to the CLIENT and any resultant or associated losses that may occur due to such square off/sale shall be borne by the CLIENT, and the MEMBER is hereby fully indemnified and held harmless by the CLIENT in this behalf.

6. Bargaining power of buyer:

The CLIENT authorizes the MEMBER to set off a part or whole of the Margin i.e. by way of appropriation of the relevant amount of cash or by sale or transfer or pledge of all or some of the securities which form part of the margin, against any dues of the CLIENT or of a member of the Family (hereinafter mean all the individuals, group companies, firms, entities and other persons as specified by the CLIENT) in the event of the failure of the CLIENT or a member of the Family of the CLIENT to meet any of their respective obligations under these terms.

40

SWOT ANALYSIS OF RELIGARE

A SWOT analysis focuses on the internal and external environments, examining strengths and weaknesses in the internal environment and opportunities and threats in the external environment.

STRENGTHS
Services As a product Religare is a extremely innovative product with very less cost. Services like online trading facility, institutional and domestic broking, customized research reports with almost 80% efficiency etc give Religare an edge over its competitors. Religare provides other support services that make retail investors more confident and assured with their trading. SMS alerts (allowing traders and investors to make the most of the available opportunities), Softer, intangible features like imagery, equity driving preference. Through efficient trading processes Investors can place their orders directly on the Internet, do all the information seeking and basically own the investing process. Relationship managers The company has a team of relationship managers who are dedicated to the service of clients. These RMs take care of clients even smallest problem and make efforts to solve them through their expertise. They also help their clients to invest their wealth in the market. Distribution Network Religare with almost 150 branches beefed up by comprehensive online research, advice and transaction services. In near future expect to make 200000+ retail customers being serviced through centralized call centre / web solution. Marketing Religare (previously Fortis securities) is a veteran equities solutions company with loads of experience in the Indian stock markets. Religare does not claim expertise in too many things. Religares expertise lies in stocks and that's what it talks about with authority. So when he says that investing in stocks should not be confused with trading in stocks or a portfolio-based strategy is better than betting on a single horse, it is something that is spoken with years of focused learning and experience in the stock markets.

41 Products Companys product line is a basket of Financial services offered to its clients. Its a all product single shop for investors. Here we offer Along with Equity, Mutual funds, personal loans, PMS, Corporate Finance and Investment banking etc to our customers. Our products are customized according to individual demand and preference.

WEAKNESSES
Customer Satisfaction As far as customer satisfaction goes Religare has to tighten its Boots. The company does not have enough Relationship managers to cater to huge customer base. The account opening takes 2 working days whereas Indiabulls takes half the time for this purpose. Branding Though the company has efficient products but large part of investment interested population does not know the company. The most basic expectation for a trader or investor when one begins trading is that one must get timely delivery of shares and proceeds from sale of shares. Also ones cash balances with the broker must be safe and secure. Though this confidence in the broker comes with time and experience, good and transparent practices also play a major role in imbibing confidence in traders. Competition from banks and Niche Players Most of the banks due to good branding have the faith of the customers of their banking database. So they enjoy the liberty of huge database and customers find it more reliable to trade there rather than with a unknown broker. Also banks like HDFC Bank and ICICI Bank have the advantage of linking the trading accounts of their customers to saving accounts. This makes trading easier, and at the same time a trader withdraws exactly as much money from his account as is needed to complete the trade. Similarly sales proceeds are credited directly to saving account. Niche players presence as sub brokers or Small broking house like Abhipra, Way to wealth etc. attract a good share of market and run parallel to giant companies.

OPPORTUNITIES
The external environment analysis may reveal certain new opportunities for profit and growth. Ever-increasing market After the NSE brought the screen based trading system stock markets are now more secured which has attracted lot of retail investors and the demand is increasing day by day. This has resulted in improved liquidity and heavy volumes on transactions. Religare is one of the early entrants here. As to how much it will roar and how swift it can swoop

42 on the market, the future alone can answer such queries. Religare has been a mega player and is known for being a mover of stocks. It is also known for putting big deals through and enjoys good networking with the FIIs. It has been dynamic enough to move with the times and capture the opportunities that the market throws up from time to time. Improving Technology In country like India technology is always improving which gives the company a chance to keep on improving their product with time whereas for the small players like local brokers it will be difficult to keep the same pace as the changing technology. Also with SEBI lying down some strict guidelines small brokers are finding it harder to retain the customers with no research department and small capital. The traditional business model is highly dependent on a large network of sub-brokers, and many established players may not have systems (technology, customer service, etc.) capable of directly servicing so many retail customers. Unfulfilled needs of the customers With so many competitors offering their products in the market but no one is able to completely satisfy the customers. Some have the problem of lack of information or some were scared of volatility of the stock markets. Religare has the opportunity to tap this unsatisfied set of customers and to make hold in the market. The Internet serves to break all barriers to information, as it offers an extremely hassle-free investing platform. And, Religare hopes to fully utilize and capitalize on this platform. This original idea by Religare itself was born out of the consumer's need for a more transparent, easy to understand and convenient option of investing in stocks. Education Level The education level in the country is improving year after year as far as technology goes. With that the understanding of the stock market is also increasing and a lot of retail investors are steeping in the markets which is being shown by increasing volumes, transactions and indices.

THREATS
New Competitors A lot of new competitors are trying to enter the market in this bullish run to taste the flavor of this cherry. This is creating a lot of competition for large players like Religare and it is creating little confusion in the minds of the customers about the services provided by the broker. Also many banking firms are entering into the market with huge investment. Competitors like ICICI, kotak, hdfc, 5-paisa etc. are posing a lot of threats to the company.

43 Technology based business Online trading is totally based on the technology which is quite complex. Typically, the technology solution has to start from the Internet front-end (or the screen that you see when you begin trading). Then it needs to get into the 'middle tier' of risk management systems that assess data from banks and depository participants (DP), calculate client risk at that point in time, and give the 'Go/No go' advice to the trade. So technology is a kind of threat because unless until it is working properly it is good but internet is not that safe. Though a lot of cyber laws are being made but not yet executed. Switch over cost The cost of switching over from one company to other is minimal therefore the company cant even stop for breathing i.e. it has to provide quality service all the time to its clients.

44

CONSUMER BEHAVIOR
India is a big country with 28 states, over one billion people and 120 dialects/languages. From the market perspective, people of India comprise different segments of consumers, based on class, status, and income. An important and recent development in Indias consumerism is the emergence of the rural market for several basic consumer goods. Three-fourths of Indias population lives in rural areas, and contribute one-third of the national income. This rural population is spread all over India, in close to 0.6 million villages. India is a lucrative market even though the per capita income in India is low and it remains a huge market, even for costly products and investment companies.

CHARACTERISTICS OF INDIAN CONSUMER BEHAVIOR

The Indian consumers are noted for the high degree of value orientation. Such orientation to value has labeled Indians as one of the most discerning consumers in the world. Even, luxury brands and high-end services have to design a unique pricing strategy in order to get a foothold in the Indian market. Family orientation: Indian consumers have a high degree of family orientation. This orientation in fact, extends to the extended family and friends as well. Brands with identities that support family values tend to be popular and accepted easily in the Indian market. Indian consumers are also associated with values of nurturing, care and affection. These values are far more dominant that values of ambition and achievement. Product and services, which communicate feelings and emotions, gel with the Indian consumers. Apart from psychology and economics, the role of history and tradition in shaping the Indian consumer behavior is quite unique. Perhaps, only in India, one sees traditional products and services along side modern products and services.

45

DIFFERENT SEGMENTS OF CONSUMERS

The Socialites Socialites belong to the upper class. They prefer to shop in specialty stores, go to clubs on weekends, and spend a good amount on luxury goods and services. They are always looking for something different. They are the darlings of exclusive establishments. They go for high value, exclusive products and services. Socialites are also very brand conscious and would go only for the best known in the market. The Conservatives The Conservatives belong to the middle class. The conservative segment is the reflection of the true Indian culture. They are traditional in their outlook, cautious in their approach towards purchases and investments, spend more time with family than in partying and focus more on savings than spending. Slow in decision-making, they seek a lot of information before making any purchase or investment. They look for durability and functionality but at the same time are also the image conscious.

The Working Women The working woman segment is the one, which has been constantly growing in India. The working woman today has grown out of her long-standing image of en a tremendous growth. This segment has opened the floodgates for the Indian retailers and service providers. Today, she is rubbing shoulders with man being the homemaker, proving herself to be equally good, if not better. Working women have their own mind in decision to purchase the product or make an investment that appeal/suit to them.

Indias Rich
Indias rich can be categorized into five major categories as follows: Rich The rich have income greater than US$11,000/- per annum. Total household having such incomes are 1,058,961. These people are upwardly mobile. Some of them in this category are Double Income No Kids (DINK) households. They spend more on leisure and entertainment-activities than on future looking investments. Across the category, backgrounds are distinctly middle class. They aspire, therefore, to attain the super-rich status.

46 The Super rich The Super Rich have income greater than US$22,000/- per annum. Total number of households is 320,900. There are less DINK families here than in the rich category. The Super Rich are mainly professionals and devoted to consumerism. They buy many durables and services and are status conscious. The ultra rich The Ultra Rich have income greater than US$44,000/- per annum. The number of households in this category is 98,289. There is no typical profile of the ultra-rich. There are some DINK households of middle-level executives. Some single earning households are of first generation entrepreneurs. Some rich farmers, who have been rich for a long time, belong to this category. The Sheer Rich The Sheer Rich is made up by households having income exceeding US$110,000/- per annum. Such households are 20,863. They do not have a homogenous profile. There are joint families as well as nuclear families in this category. They consume services greatly. They own multiple cars and houses. They aspire to social status and power. The Obscenely Rich The Obscenely Rich is made up of households having income exceeding US$222,000/per annum. There are hardly 6,515 such households in India. They are first-generation entrepreneurs who have made it big. Some of them are techies. A variety of people belong to this category. They are just equivalent to the rich in the developed countries. They crave for exclusivity in what they buy and where they invest. Most premium brands and services are relevant to them. Rural Consumer About three quarters of the Indian population are in the rural areas and with the growing middle class, especially in the Indian cities; the spill over effect of the growing urban middle class is also felt in the rural areas. The Indian rural market has been growing at 3-4% per annum, adding more than 1 million new consumers every year and now accounts for close to 50% of the volume consumption of fast-moving consumer goods (FMCG) in India. The market size of the fast moving consumer goods sector is projected to more than double to US$ 23.25 billion by 2010 from the present US$ 11.16 billion. As a result, it is becoming an important market place for fast moving consumer goods, consumer durables and service sector.

47

INCREASING AWARENESS OF INDIAN CONSUMER

Over the years, as a result of the increasing literacy in the country, exposure to the west, satellite television, foreign magazines and newspapers, there is a significant increase of consumer awareness among the Indians. Today more and more consumers are selective on the quality of the products/services. This awareness has made the Indian consumers seek more and more reliable sources for purchases and services such as organized retail chains that have a corporate background and where the accountability is more pronounced. The consumer also seeks to purchase or render a service from a place where his/her feedback is more valued. Indian consumers are now more aware and discerning, and are knowledgeable about technology, products and the market and are beginning to demand benefits beyond just availability of a range of products or service that came from trusted manufacturers or service providers.

CELEBRITY INFLUENCE

This is an important tool that is able to influence Indian consumer buying behavior. In India, celebrities is being increasingly used in marketing communication by marketers to lend personality to their products. With the visual media becoming more popular the use of celebrities in the TV media has increased. Celebrities create headlines. Their activities and movements are being closely watched and imitated. What they endorse sell like hot cakes. It is not surprising therefore that using celebrities in advertisements has become common practice. In India especially, it is not difficult to look for the reasons as to why companies are increasingly using celebrities. Indians always love their heroes and heroines. Consumers like advertisements more if they are admirers of the celebrities in the advertisements. When a consumer likes the celebrity in the advertisement, he or she is more likely to accept what the celebrity says about the advertised product or service and therefore will develop more positive feelings toward the advertisement and the brand itself. Famous celebrities are able to attract attention and retain attention by their mere presence in the advertisements. In the midst of the advertisement clutter, the advertisements that celebrities endorse also achieve high recall rates. When people see their favoured reference group members or celebrities in the advertisements, they pay more attention to them. Celebrities may also help reposition products or services. Products or

48 services with sagging sales needs some boosting and in this Indian celebrities can help by way of they endorsing the product/service concerned.

FREEBIES

Freebies influence Indian consumer buying behavior. Freebies are consumer products or add on benefits or services given free of charge as gifts to purchases of selected products or rendering of services above a certain value. TVs, washing machines, refrigerators etc are some of the product categories in which freebies are given to Indian consumers. For the financial services sector these freebies can be free research reports, free SMS facility, free account opening, etc.

49

Segmentation
Market segmentation is the identification of portions of the market that are different from one another. Segmentation allows the firm to better satisfy the need of the customer. The investing customer can be segmented on the following basis: Income Urban/rural Education Employment Satisfaction level with existing resources

However keeping in view that investment option is still in the nascent stages in India in relation to per capita income of the country, income is the best possible way of segmentation. The study by INGRES shows the impact of financial institutions on the basis of income : We will divide the consumer into income classes: Low income -Earns family income of up to 100000 per annum. Lower middle income Earns family income of about 100001-150000 per annum. Mid middle income Earns family income of about 150001-200000 per annum. Upper middle income Earns family income of about 200001-250000 per annum. High Income-Earns family income of 250000 and above.

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RESEARCH METHODOLOGY
RESEARCH DESIGN
A research design is the detailed blueprint used to guide a research study towards its objectives. It is series of advanced decisions taken together comprising a master plan or a model for the conduct of research in consonance with the research objectives. It details the procedures necessary for obtaining the information needed to structure or solve the marketing research problem The researchers propose to first conduct a intensive secondary research to understand the full impact and implication of the industry, to review and critique the industry norms and reports, on which certain issues shall be selected, which the researchers feel remain unanswered or liable to change, this shall be further taken up in the next stage of exploratory research where focused group shall screen through. This stage shall help the researchers to restrict and select only the important question and issue, which inhabit growth and segmentation in the industry. These set of questions are then propose to be studied under a descriptive research setting finally leading to formation of hypotheses and testing under causal research.

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DESCRIPTIVE RESEARCH
Major objective of descriptive research is to describe something usually market characteristics or functions. Descriptive research is characterized by the prior formulation of specific hypotheses. Here information is clearly defined. A majority of market research studies are descriptive research studies. A descriptive research study must collect data for a definite purpose. In descriptive research, hypotheses often exist, but they may be tentative and speculative. The purpose for doing a market research was to find an accurate snapshot of the awareness in Indian investor. The relevance and importance of this factors was studied in a descriptive manner so as to get an overview of the behavior of the Indian investor.

TARGET POPULATIONS AND SAMPLE SIZE

The sample size of 500 respondents is taken & survey is conducted only in NCR region. Today the TV is there in almost there in every house. So we try to target the people who have TV in their house. A survey is conducted across various age groups, occupation, with different income levels. in the survey we try to find out the various factors which influence the person while purchasing a color TV.

PLAN OF ANALYSIS

The data obtained through questionnaire was processed using the statistical software SPSS 12.0 Additional information obtained from various business journals, magazines, newspapers, websites etc. are also analyzed.

SOURCE OF INFORMATION
PRIMARY SOURCE OF DATA The questionnaire formed the basis of collecting the primary data. SECONDARY SOURCE OF DATA The secondary source of data is collected from where various business journals, magazines, newspapers, websites etc. are also analyzed.

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QUESTIONNAIRE
Questionnaire is an important step in formulating a research design. Once the researcher has specified the nature of research design, and determined the scaling procedures, he or she can develop a questionnaire. Objectives of a questionnaire: Any questionnaire has three specific objectives. 11. It must translate the information needed into a set of specific questions that the respondents can and will answer. 22. It must uplift, motivate and encourage the respondent to become involved in the interview, to cooperate, and to complete the interview. Incomplete interviews have limited usefulness at best. 33. It should be able to minimize response errors. It was also important as researchers to respect the samples time and energy hence the questionnaire was designed in such a way, that its administration would not exceed 4-5 mins. These questionnaires were personal administered.

SCALING TECHNIQUES
MEASUREMENT & SCALING

Measurement can be defined as a standardized process of assigning numbers or other symbols to certain characteristics of the objects of interest. Researchers engage in using the measurement process by assigning either numbers or labels to: 1 Peoples thoughts, feelings, behaviors, and characteristics. 2 The features or attributes of objects. 3 The aspects of concepts / ideas. 4 Any type of phenomenon or event using specific rules to represent quantities and qualities of the factors being investigated . 5 Measurement process consists of: 1 Construct development 2 Scale measurement The goal of construct development is to precisely identify and what is to be measured, including any dimensionality traits.

53 The goal of scale measurement is to determine how to precisely measure each construct. Scaling may be considered as an extension of measurement. Scaling involves creating a continuum on which measured objects are located. Scale development is designing questions to measure the subjective properties of an object. There are several types of scales, each of which possesses different characteristic. The characteristics of a scale determine the scales level of measurement. Characteristics of scales 1 Description 2 Order 3 Distance 4 Origin

There are four types of scales

Nominal Ordinal Interval Ratio

Scaling Techniques

54 Nominal Scale Nominal scales are defined as those that use only label; that is, they possess only the characteristic of description. The response does not include any level of intensity. Examples: 1 Designations as to race, religion, 2 Type of dwelling 3 Gender 4 Brand last purchased 5 Answers that involve yes-no, agree-disagree 6 Any other instance in which descriptors can not be differentiated except qualitatively. Semantic differential scale It is a unique bipolar ordinal scale format that captures a persons attitudes or feelings about a given object. This type of scale is unique in its use of bipolar adjectives and adverbs (good/bad, like/dislike, competitive/noncompetitive, helpful/unhelpful, etc.) In semantic differential scale, the respondents are asked to express their feelings about whatever being evaluated by recording their responses on a scale of adjectives (such as strong -- mild), which ae paired polar opposites. This is usually a seven point scale. Continuous rating scale A scale measure that uses a scale point format that presents the respondent with some type of graphic continuum as the set of possible responses to a given question. It is also referred to as graphic rating scales Respondents rate the objects by placing a mark at the appropriate position on a line that runs from one extreme of the criterion variable to the other. The respondents are not restricted to selecting from marks previously set by the researcher. Likert scale It is an ordinal scale format that asks the respondents to indicate the extent to which they agree or disagree with a series of mental belief or behavioral belief statements about a given object. In the likert scale, the matter of choosing opposite adjectives is avoided. Rather, it makes a statement or poses one description (or adjective) for whatever is being evaluated. They are also called summated scales because the scores on the individual items are summed to produce a total score for the respondent.

55

Questionnaire
(Please tick wherever applicable) Q1) How do you like to spend your free time? a) With Family [ ] b) With Friends [ ] c) Reading [ ] d) Watching TV [ ] e) Playing Games [ ] f) Others (Plz Specify) Q2) Which of the following channels you like to watch more? a) Music [ ] b) Sports [ ] c) Entertainment [ ] d) News [ ] e) Business [ ] f) Others [ ] Q3) Which type of investment options are you aware of? a) Shares [ ] b) Real Estate [ ] c) Debt market (Bank FDs, bonds etc.) [ ] d) Commodity [ ] e) Bullion (gold, silver etc.) [ ] f) Mutual Funds [ ] g) Others (forex etc, plz specify) Q4) Are you aware of online share trading ? a) Yes [ ] b) No [ ]

Q5) What is your preferred mode of trading securities? a) Self Q6) [ ] b) Broker (Trading House ) [ ]

If you trade through a broker, which broking house are you associated with? a) Indiabulls b) Religare c) HDFC d) Sharekhan i) Any other (please specify) e) IL & FS f ) 5-Paise g) ICICI direct h) Kotak

56 Q7) Have you seen any latest advertisement of your broker? a) Yes [ ] b) No [ ] Q8) Are you planning to invest in near future? a) YES [ ] Q9) Which type of investment option will you prefer? Shares Mutual Funds Real Estate Debt market Bullion Commodity Others [ ] [ ] [ ] [ ] [ ] [ ] [ ]

b) NO [ ]

) ) ) ) )

Q10) How much do you think you will invest in near future ? a) < 1,00,000 b) 2,50,001-5,00,000 [ ] [ ] c) 1,00,001-2,50,000 d) above 5,00,000 [ ] [ ]

Q11) Did you survey the market before selecting your broker? a) Yes [ ] Q12) If yes. The broking house considered? a) Indiabulls b) Religare c) HDFC d) Sharekhan i) Any other (please specify) e) IL & FS f ) 5-Paise g) ICICI direct h) Kotak b) No [ ]

57 Q13) When and if you are making an investment in equity market through a broker what will you look for? Strongly agree a) I invest whenever the need arises b) I must have the best plan available in the market c) I only make planned investments d) I should have low brokerage and other expenses charged. Agree Neutral Disagree Strongly Disagree

Q14) What are the main features that influenced your decision? (give rank 1 being the strongest and 7 being weakest) a) Brand Name b) Quality of service c) Online support d) Customized services e) Location of broker f) Brokerage g) Impressive Advertising

Q15) Who in your family or outside took or influenced your decision to invest? a) Self c) News/Business channels (media) [ ] [ ] b) Spouse/children d) Friends/broker [ ] [ ]

Q16) Do large specific promotions such as very low brokerage and free account opening effect your decision to choose a broker? a) No b) Yes [ ] [ ] (please mention the most important factor which influences you)

58 Q17) How important is the price factor if you plan to choose a broker? [ ] very important [ ] neutral [ ] not important

Q18) Rate the following statements from 1 to 5 in terms of the given attributes for Indiabulls, Sharekhan, Religare, ICICI direct, Kotak, 5 paise (l- Fully Agree, 2 -Somewhat Agree, 3 -Neutral, 4 -Somewhat Disagree, 5 -Fully Disagree) Features High quality of services Ease of access & convenient location Good promotional schemes Good customized services Impressive marketing Low brokerage and other charges
Sharekhan Indiabulls Religare HDFC Kotak

ICICI direct

59

Respondents Details
Name : Address: Gender:

Age (in yrs.) <15 [ ] 41-60 [ ] 16-25 [ ] >60 [ ] 26-40 [ ]

Number of earning members in the family: Occupation : [ ] Self employed [ ] service Annual Family Income <50000 [ ] 150001-200000 [ ] Telephone No. 50001-100000 [ ] 200001-250000 [ ] 100001-150000 [ ] 250000 and above [ ] [ ] Student [ ] housewife

60

61

Q-1 Leisure Time Ratings

With family Frequency 391 109 500 Percent 78.2 21.8 100.0 Valid Percent 78.2 21.8 100.0 Cumulative Percent 78.2 100.0

Valid

yes no Total

yes
no

21.8 78.2

Out of the 500 persons surveyed for preference in spending free time, 391 voted for family, which accounts for 78.2% of total respondents surveyed. So this shows that spending free time with family is the top most preferred leisure activity for the Indian consumer.

62

With frie nds Frequency 250 250 500 Percent 50.0 50.0 100.0 Valid Percent 50.0 50.0 100.0 Cumulative Percent 50.0 100.0

Valid

yes no Total

yes no

50

50

Out of the 500 persons surveyed for preference in spending free time, 250 voted for friends, which accounts for 50.0% of total respondents surveyed. So this shows that spending free time with friends is the third most preferred leisure activity for the Indian consumer.

63

Re ading Frequency 168 332 500 Percent 33.6 66.4 100.0 Valid Percent 33.6 66.4 100.0 Cumulative Percent 33.6 100.0

Valid

yes no Total

yes no

33.6 66.4

Out of the 500 persons surveyed for preference in spending free time, 168 voted for reading, which accounts for 33.6% of total respondents surveyed. So this shows that spending free time by reading is the fourth most preferred leisure activity for the Indian consumer.

64

Watching TV Frequency 272 228 500 Percent 54.4 45.6 100.0 Valid Percent 54.4 45.6 100.0 Cumulative Percent 54.4 100.0

Valid

yes no Total

yes no

45.6 54.4

Out of the 500 persons surveyed for preference in spending free time, 272 voted for Watching TV, which accounts for 54.4% of total respondents surveyed. So this shows that spending free time by watching TV is the second most preferred leisure activity for the Indian consumer.

65

Playing game s Frequency 85 415 500 Percent 17.0 83.0 100.0 Valid Percent 17.0 83.0 100.0 Cumulative Percent 17.0 100.0

Valid

yes no Total

yes no

17

83

Out of the 500 persons surveyed for preference in spending free time, 85 voted for Playing Games, which accounts for 17.0% of total respondents surveyed. So this shows that spending free time by Playing Games is the fifth most preferred leisure activity for the Indian consumer.

66

othe rs Frequency 18 482 500 Percent 3.6 96.4 100.0 Valid Percent 3.6 96.4 100.0 Cumulative Percent 3.6 100.0

Valid

yes no Total

yes no

3.6

96.4

Out of the 500 persons surveyed for preference in spending free time, 18 voted for some other activities, which accounts for 03.6% of total respondents surveyed. So this shows that spending free time by other than the mentioned activities is the least preferred leisure activity for the Indian consumer.

67

Q-2 Channel Ratings for Advertisement Decisions

Music
Frequency 180 320 500 Percent 36.0 64.0 100.0 Valid Percent 36.0 64.0 100.0 Cumulative Percent 36.0 100.0

Valid

yes no Total

yes no

36

64

Out of the 500 persons surveyed for preference in type of television channel watched, 180 opted for Music channels, which accounts for 36.0% of total respondents surveyed. So this shows that watching music channels is the third most preferred type of television channel watched by the Indian consumer.

68

Sports Frequency 135 365 500 Percent 27.0 73.0 100.0 Valid Percent 27.0 73.0 100.0 Cumulative Percent 27.0 100.0

Valid

yes no Total

yes no

Out of the 500 persons surveyed for preference in type of television channel watched, 135 opted for Sports channels, which accounts for 27.0% of total respondents surveyed. So this shows that watching sports channels is the fourth most preferred type of television channel watched by the Indian consumer.

69

Entertainment Frequency 342 158 500 Percent 68.4 31.6 100.0 Valid Percent 68.4 31.6 100.0 Cumulative Percent 68.4 100.0

Valid

yes no Total

yes no

31.6

68.4

Out of the 500 persons surveyed for preference in type of television channel watched, 342 opted for Entertainment channels, which accounts for 68.4% of total respondents surveyed. So this shows that watching entertainment channels is the top most preferred type of television channel watched by the Indian consumer.

70

News Frequency 293 207 500 Percent 58.6 41.4 100.0 Valid Percent 58.6 41.4 100.0 Cumulative Percent 58.6 100.0

Valid

yes no Total

yes no

41.4

58.6

Out of the 500 persons surveyed for preference in type of television channel watched, 293 opted for News channels, which accounts for 58.6% of total respondents surveyed. So this shows that watching News channels is the second most preferred type of television channel watched by the Indian consumer.

71 Business
Frequency 86 414 500 Percent 17.2 82.8 100.0 Valid Percent 17.2 82.8 100.0 Cumulative Percent 17.2 100.0

Valid

yes no Total

Business

yes no

17.2

82.8

Out of the 500 persons surveyed for preference in type of television channel watched, 86 opted for Business channels, which accounts for 17.2% of total respondents surveyed. So this shows that watching business channels is the fifth most preferred type of television channel watched by the Indian consumer.

72

Othe rs Frequency 37 463 500 Percent 7.4 92.6 100.0 Valid Percent 7.4 92.6 100.0 Cumulative Percent 7.4 100.0

Valid

yes no Total

Others
yes no
7.4

92.6

Out of the 500 persons surveyed for preference in type of television channel watched, 37 opted for other channels (including cartoon, nature, etc.), which accounts for 07.4% of total respondents surveyed. So this shows that watching other than above mention channels is the least preferred type of television channel watch by the Indian consumer.

73

Q- 3 & Q-9 Awareness About Investment Options and Preference Scale

Shares
Frequency 491 9 500 Percent 98.2 1.8 100.0 Valid Percent 98.2 1.8 100.0 Cumulative Percent 98.2 100.0

Valid

yes no Total

100

80

60

40

20 . yes S ha re s no

Out of the 500 persons surveyed for awareness and preference about investment options, 491 are aware about and prefer equity investments that include shares and derivatives, which accounts for 98.2% of total respondents surveyed. So this shows that investing in shares and derivatives is the Second most known and preferred investment option in India. This may be due to the fact of all news channels keeping an update on Share market and the high returns it generates.

74 Real Estate
Frequency 313 187 500 Percent 62.6 37.4 100.0 Valid Percent 62.6 37.4 100.0 Cumulative Percent 62.6 100.0

Valid

yes no Total

R e a l E s ta t e

70 60 50 t 30 20 10 0 6 .6 2 37.4

yes

Real Estate

no

Out of the 500 persons surveyed for awareness and preference about investment options, 313 are aware about and prefer real estate investment, which accounts for 62.6% of total respondents surveyed. So this shows that investing in real estate is the Fifth most known and preferred investment option in India.

75 Debt Market
Cumulative Percent 100.0

Valid

yes

Frequency 500

Percent 100.0

Valid Percent 100.0

D e b t M a rk e t

100 80 60 100 40 20 0 yes D e b t M a rk et

Out of the 500 persons surveyed for awareness and preference about investment options, all 500 are aware about and prefer debt market investments that include Bank FDs, bonds, debentures, floating papers etc. (initially debt market is not a common term but when told examples such as fixed deposits in banks everyone was aware about it) which accounts for 100.0% of total respondents surveyed. So this shows that investing in debt market is the Top most known and preferred investment option in India. This may be due to the fact that debt market investments are one of the oldest in India and considered to be the safest although low returns are attached to it.

76 Commodity
Frequency 170 330 500 Percent 34.0 66.0 100.0 Valid Percent 34.0 66.0 100.0 Cumulative Percent 34.0 100.0

Valid

yes no Total

C ommodity

70 60 50 40 30 20 10 0 yes Commodity no 34 66

Out of the 500 persons surveyed for awareness and preference about investment options, 170 are aware about and prefer commodity market investment, which accounts for 34.0% of total respondents surveyed. So this shows that investing in the commodity market is the Least known and preferred investment option in India. This may be due to the fact that commodity investment is still in nascent stages in India and only a few major players dominate it owing to the fact of large capital needed and only future trading is predominant which is lot riskier than spot trading.

77 Bullion
Frequency 321 179 500 Percent 64.2 35.8 100.0 Valid Percent 64.2 35.8 100.0 Cumulative Percent 64.2 100.0

Valid

yes no Total

Bullion

70 60 50 40 30 20 10 35.8 0 64.2

yes Bullion

no

Out of the 500 persons surveyed for awareness and preference about investment options, 321 are aware about and prefer bullion investments that include gold, silver etc, which accounts for 64.2% of total respondents surveyed. So this shows that investing in bullion commodities is the Fourth most known and preferred investment option in India. This may be due to the fact that in India there is emotional attachment with commodities such as gold and silver.

78 Mutual Funds
Frequency 456 44 500 Percent 91.2 8.8 100.0 Valid Percent 91.2 8.8 100.0 Cumulative Percent 91.2 100.0

Valid

yes no Total

Mutual Funds

100

80

60 91.2

40

20 8.8 yes Mutual Funds no

Out of the 500 persons surveyed for awareness and preference about investment options, 456 are aware about and prefer mutual fund investments that include equity, debt and balanced MF, which accounts for 91.2% of total respondents surveyed. So this shows that investing in mutual funds is the Third most known and preferred investment option in India. This may be due to the fact that MFs are now being considered as safe investment option which also give high returns. One more important feature can be aggressive marketing of MFs by their respective companies (AMCs).

79

Others
Frequency 217 283 500 Percent 43.4 56.6 100.0 Valid Percent 43.4 56.6 100.0 Cumulative Percent 43.4 100.0

Valid

yes no Total

Oth ers

60 50 40 30 20 10 0 4 3 .4

5 6.6

yes O th e rs

no

Out of the 500 persons surveyed for awareness and preference about investment options, 217 are aware about other and prefer investment options that generally include foreign exchange, money market investment, insurance, lending and borrowing etc which accounts for 43.4% of total respondents surveyed. So this shows that investing in options other than those mentioned in the questionnaire is the Sixth most known and preferred investment option in India. This may be due to the fact that such type of investments are not properly marketed and/or understood by people in India.

80

Q- 4 Awareness About Online Equity Trading

Awareness about online share trading
Cumulative Percent 49.2 100.0

Valid

yes no Total

Frequency 246 254 500

Percent 49.2 50.8 100.0

Valid Percent 49.2 50.8 100.0

Awareness about online share trading

60

50

40

30

20

10 0 yes no

Awareness about online share trading

Out of 500 respondents surveyed 246 were aware about the facility of online equity trading which accounts for 49.2% of total sample size. While majority of respondents (50.8%) were unaware about such facilities being provided. This shows that online equity trading is an emerging field and broking houses should venture into it and should aggressively market their products related to such online trading.

81

Q- 5 Awareness About Online Equity Trading

Preferred mode of trading securities
Cumulative Percent 27.4 100.0

Valid

self broker Total

Frequency 137 363 500

Percent 27.4 72.6 100.0

Valid Percent 27.4 72.6 100.0

Self Broking House

Out of 500 respondents surveyed for preference in mode through which they would like to trade in securities, 137 (27.4%) were keen in direct trading while a majority of 363 (72.6%) wanted to trade through a broker. These results may be due to the services and convenience the brokers or broking houses provide to its customers.

82

Q-6 Market Share of Broking House

Valid Indiabulls Religare HDFC Sharekha n IL & FS 5-Paise ICICI direct Kotak others Total Frequency 82 46 43 67 11 12 100 57 82 500 Percent 16.4 9.2 8.6 13.4 2.2 2.4 20.0 11.4 16.4 100.0 Valid Percent 16.4 9.2 8.6 13.4 2.2 2.4 20.0 11.4 16.4 100.0 Cumulative Percent 16.4 25.6 34.2 47.6 49.8 52.2 72.2 83.6 100.0

20

15

10
16.4 13.4

20 16.4

11.4 9.2 8.6

2.2

2.4

0 Indiabulls Religare HDFC Sharekhan IL & FS 5-Paise ICICI direct Kotak others

Market Share of Brokering Houses

The survey results for the market share of various broking houses are as following:Highest Share: ICICI direct with 100 respondents accounting for 20% market share. Least Owned:IL & FS with 11 respondents accounting for 2.2% market share.

83 As there are nearly 3500 brokers in India at the present so there was a high percentage of respondents opting for the others option.

Q-7 Latest Ads of Own Broker

Valid

yes no Total

Frequency 249 251 500

Percent 49.8 50.2 100.0

Valid Percent 49.8 50.2 100.0

Cumulative Percent 49.8 100.0

If la t ad o o n b ke se n tes s f w ro r e

a se d en a n t se n d o e

Out of the 500 persons surveyed 249 have watched the latest advertisements (in any form or in any type of media) of their own broker. This accounts for 49.8% of respondents surveyed.

84

Q-8 Investment Planning

Cumulative Percent 27.4 100.0

Valid

yes no Total

Frequency 137 363 500

Percent 27.4 72.6 100.0

Valid Percent 27.4 72.6 100.0

Planning to Invest in Near Future

yes no

Out of 500 persons surveyed, only 137(27.4%) were interested in making investments in the near future. But the majority i.e. 363 (72.6%) was not in favor to go for an investment option in the near future. The above data shows that majority of people have apprehensions and are not keen to invest in the near future. This may be due to the Volatility that the equity market is seeing recently which has definitely shattered the confidence of investors

85

Q-10 Investment Power

Frequency 116 250 110 24 500 Percent 23.2 50.0 22.0 4.8 100.0 Valid Percent 23.2 50.0 22.0 4.8 100.0 Cumulative Percent 23.2 73.2 95.2 100.0

Valid

<1,00,000 1,00,0012,50,000 2,50,0015,00,000 above 5,00,000 Total

Investment in Near Future

<1,00,000 1,00,001-2,50,000 2,50,001-5,00,000 above 5,00,000

Maximum of 250(50.0%) respondents prefer to invest in the range of Rs.1,00,001 to Rs.2,50,000 in near future. Minimum of 24(4.8%) respondents prefer to invest more than Rs.5,00,000 in near future. The above gives an indication that investors in India may invest in safer options in near future as the equity market has been quite volatile recently. But in the long run these investors will definitely invest in the equity market, as the returns there are on the high side.

86

Q-11 Market Survey By Investors

M are ke t surv eyed or not Frequency 364 136 500 Percent 72.8 27.2 100.0 Valid Percent 72.8 27.2 100.0 Cumulative Percent 72.8 100.0

Valid

yes no Total

Surveyed Not Surveyed

27.2

72.8

Out of 500 persons surveyed 364 (72.8%) replied that they surveyed the market before choosing their broker. This shows that most Indian investors are aware of the market and make planned decisions to choose the most suitable broker. Competition is there and it is tough and investors go for a survey to select the best broker to their liking based on some parameters.

87

Q-12 Brokers Considered in Survey by Investors

Indiabulls considered in survey
Frequency 257 243 500 Percent 51.4 48.6 100.0 Valid Percent 51.4 48.6 100.0 Cumulative Percent 51.4 100.0

Valid

yes no Total

Religare considered in survey

Frequency 74 426 500 Percent 14.8 85.2 100.0 Valid Percent 14.8 85.2 100.0 Cumulative Percent 14.8 100.0

Valid

yes no Total

HDFC considered in survey

Frequency 39 461 500 Percent 7.8 92.2 100.0 Valid Percent 7.8 92.2 100.0 Cumulative Percent 7.8 100.0

Valid

yes no Total

Sharekhan considered in survey

Frequency 85 415 500 Percent 17.0 83.0 100.0 Valid Percent 17.0 83.0 100.0 Cumulative Percent 17.0 100.0

Valid

yes no Total

IL & FS considered in survey

Frequency 38 462 500 Percent 7.6 92.4 100.0 Valid Percent 7.6 92.4 100.0 Cumulative Percent 7.6 100.0

Valid

yes no Total

5-Paise considered in survey

Frequency 4 496 500 Percent .8 99.2 100.0 Valid Percent .8 99.2 100.0 Cumulative Percent .8 100.0

Valid

yes no Total

88
ICICI direct considered in survey
Frequency 155 345 500 Percent 31.0 69.0 100.0 Valid Percent 31.0 69.0 100.0 Cumulative Percent 31.0 100.0

Valid

yes no Total

Kotak considered in survey

Frequency 114 386 500 Percent 22.8 77.2 100.0 Valid Percent 22.8 77.2 100.0 Cumulative Percent 22.8 100.0

Valid

yes no Total

Others considered in survey

Frequency 33 467 500 Percent 6.6 93.4 100.0 Valid Percent 6.6 93.4 100.0 Cumulative Percent 6.6 100.0

Valid

yes no Total

ANALYSIS OF DATA
Broker No. of consideri ng Responde nts
257 74 39 85 38 04 155 114 33

%age

Standing in terms of Perception by Investor

1 5 6 4 7 9 2 3 8

Indiabulls Religare HDFC Sharekhan IL & FS 5-Paise ICICI direct Kotak Others (Karvy, Geojit, Alankrit etc.)

51.4 14.8 07.8 17.0 07.6 00.8 31.0 22.8 06.6

89

Q-13 What Investors Want & Do While Investing in Equity Market Through a Broker
Invest when need arises
Cumulative Percent 40.0 73.8 88.8 97.0 100.0

Frequency Valid strongly agree agree neutral disagree strongly disagree Total 200 169 75 41 15 500

Percent 40.0 33.8 15.0 8.2 3.0 100.0

Valid Percent 40.0 33.8 15.0 8.2 3.0 100.0

Must have the best plan available

Cumulative Percent 26.6 59.4 85.0 93.4 100.0

Frequency Valid strongly agree agree neutral disagree strongly disagree Total 133 164 128 42 33 500

Percent 26.6 32.8 25.6 8.4 6.6 100.0

Valid Percent 26.6 32.8 25.6 8.4 6.6 100.0

Make planned investments

Cumulative Percent 31.6 71.2 91.0 98.8 100.0

Frequency Valid strongly agree agree neutral disagree strongly disagree Total 158 198 99 39 6 500

Percent 31.6 39.6 19.8 7.8 1.2 100.0

Valid Percent 31.6 39.6 19.8 7.8 1.2 100.0

90
Low Brokerage & Expenses
Cumulative Percent 21.6 49.8 70.8 94.0 100.0

Frequency Valid strongly agree agree neutral disagree strongly disagree Total 108 141 105 116 30 500

Percent 21.6 28.2 21.0 23.2 6.0 100.0

Valid Percent 21.6 28.2 21.0 23.2 6.0 100.0

Maximum respondents either strongly agree or agree to first three points viz. Invest whenever need arises Must have best plan available Making of planned investments 200+169 = 369 133+164 = 297 158+198 = 356 73.8% 59.4% 71.2%

On the other hand only 249(49.8%) respondents agree that they should have low brokerages and other expenses charged to them The above data shows that as compared to NEED, LATEST PLANS and PLANNING, PRICE is not a dominating factor while making investment decisions.

Descriptive Statistics
Descriptive Statistics N Invest when need arises Must have the best plan available Make planned investments Low Brokerage and other expenses Valid N (listwise) 500 500 500 500 500 Minimum 1 1 1 1 Maximum 5 5 5 5 Sum 1002 1178 1037 1319 Mean 2.00 2.36 2.07 2.64 Std. Deviation 1.073 1.152 .965 1.221

As out of a total of 5 the means of NEED, LATEST PLANS and PLANNING are below 2.50(2.00, 2.36 & 2.64 respectively) so their significance level is high. On the other hand the mean of PRICE (2.64) is above 2.50 so its significance level is low in an investment decision.

91

Q-14 Ranking of Parameters

Brand name rank
Cumulative Percent 35.4 61.8 68.8 76.4 93.0 96.2 100.0

Valid

1 2 3 4 5 6 7 Total

Frequency 177 132 35 38 83 16 19 500

Percent 35.4 26.4 7.0 7.6 16.6 3.2 3.8 100.0

Valid Percent 35.4 26.4 7.0 7.6 16.6 3.2 3.8 100.0

Quality of services rank

Cumulative Percent 39.2 71.6 79.6 83.6 85.8 94.0 100.0

Valid

1 2 3 4 5 6 7 Total

Frequency 196 162 40 20 11 41 30 500

Percent 39.2 32.4 8.0 4.0 2.2 8.2 6.0 100.0

Valid Percent 39.2 32.4 8.0 4.0 2.2 8.2 6.0 100.0

Online support rank

Cumulative Percent 4.8 22.6 34.4 48.2 82.2 93.6 100.0

Valid

1 2 3 4 5 6 7 Total

Frequency 24 89 59 69 170 57 32 500

Percent 4.8 17.8 11.8 13.8 34.0 11.4 6.4 100.0

Valid Percent 4.8 17.8 11.8 13.8 34.0 11.4 6.4 100.0

92
Customized services rank
Cumulative Percent 2.4 7.8 23.6 77.0 96.0 100.0

Valid

1 2 3 4 5 6 Total

Frequency 12 27 79 267 95 20 500

Percent 2.4 5.4 15.8 53.4 19.0 4.0 100.0

Valid Percent 2.4 5.4 15.8 53.4 19.0 4.0 100.0

Location of broker rank

Cumulative Percent 7.0 10.6 18.4 24.6 31.8 74.8 100.0

Valid

1 2 3 4 5 6 7 Total

Frequency 35 18 39 31 36 215 126 500

Percent 7.0 3.6 7.8 6.2 7.2 43.0 25.2 100.0

Valid Percent 7.0 3.6 7.8 6.2 7.2 43.0 25.2 100.0

Brokerage & Other Expenses rank

Cumulative Percent 6.2 15.4 52.4 64.4 77.8 88.8 100.0

Valid

1 2 3 4 5 6 7 Total

Frequency 31 46 185 60 67 55 56 500

Percent 6.2 9.2 37.0 12.0 13.4 11.0 11.2 100.0

Valid Percent 6.2 9.2 37.0 12.0 13.4 11.0 11.2 100.0

93
Impressive advertising rank
Cumulative Percent 4.6 9.8 21.2 23.4 30.2 52.0 100.0

Valid

1 2 3 4 5 6 7 Total

Frequency 23 26 57 11 34 109 240 500

Percent 4.6 5.2 11.4 2.2 6.8 21.8 48.0 100.0

Valid Percent 4.6 5.2 11.4 2.2 6.8 21.8 48.0 100.0

Descriptive Statistics

N Brand name rank Quality of services rank Online support rank Customized services rank Location of broker rank Brokerage & other expenses rank Impressive advertising rank 500 500 500 500 500 500 500 Valid N (listwise)

Minimum 1 1 1 1 1 1 1

Maximum 7 7 7 6 7 7 7

Sum 1342 1231 2071 1966 2664 1975 2794

Mean 2.68 2.46 4.14 3.93 5.33 3.95 5.59

Std. Deviation 1.795 1.853 1.618 .968 1.776 1.697 1.866

500

94

Analysis of Data
According to the data obtained from survey the parameters are arranged in descending order of preference of the Investors when investing in the equity market through a broker. Rank 1 2 3 4 5 6 7 Parameter Quality of service Brand name Customized services Brokerage and other expenses Online support Location of broker Impressive advertising Mean 2.46 2.68 3.93 3.95 4.14 5.33 5.59

Parameters with mean less than 3.50 may be judged important both by the Investor and the broking house/company. Brokerage & other expenses although having a mean of 4.14, which is above 3.50, should not be ruled out, as the ranking method is not the sole criteria for judging Consumer/Investor behaviour.

95

Q-15 People Influencing Decision

Frequency 188 150 125 37 500 Percent 37.6 30.0 25.0 7.4 100.0 Valid Percent 37.6 30.0 25.0 7.4 100.0 Cumulative Percent 37.6 67.6 92.6 100.0

Valid

Self Spouse/Children News/Business channels or other media Friends/Broker Total

Influencing person in decision to invest

Self Spouse/Children News/Business channels or other media Friends/Broker

Maximum no. of respondents i.e. 188 (37.6%) said that self-decision is the most important while investing. Family (spouse + children) gives a figure of 150 (30%) in decision-making which is a significant percentage. The above consideration may also be because of the fact that maximum number of respondents (391/500) like to spend their free time with family during which such decisions may be made. News channels, Business channels and other type of media contribute to a total of 125 (25%). Outside interference in investment decision-making is minimal (only 37, 7.4%).

96

Q-16 Promotions VS Decision to Select a Broker

If promotions effect decision to select a broker
Cumulative Percent 48.2 100.0

Valid

no yes Total

Frequency 241 259 500

Percent 48.2 51.8 100.0

Valid Percent 48.2 51.8 100.0

no yes

51.8

48.2

259 (51.8%) respondents out of 500 total agreed that large promotions such as very low brokerage and free account opening do affect their decision to select a broking company. Based on above observations broking companies going for large promotional schemes should fare well than those not going for such schemes.

97

Q-17 Importance of Price Factor

Price factor
Cumulative Percent 54.2 71.6 100.0

Frequency Valid very imp not imp neutral Total 271 87 142 500

Percent 54.2 17.4 28.4 100.0

Valid Percent 54.2 17.4 28.4 100.0

very imp not imp neutral

28.4

54.2

17.4

Out of 500 persons surveyed for the importance factor, 271(54.2%) agreed that price is a very important factor while making investment decisions for equity market or choosing a broker This contradicts with the result of Question 14 where brokerage and other factors directly related to price have been given a rank of 4 out of 7. This is a result of the complex investing behaviour of the Indian investor. Hence it validates the point mentioned earlier that Price should not be ruled out while studying consumer behavior for purchase of television set.

98

Q-18 BROKER RATING

In this question which is in a tabular form, respondents were asked to rate the Brokers namely 1) Sharekhan, 2) Indiabulls, 3) Religare, 4) HDFC, 5) Kotak and 6) ICICI direct on a scale of 1 to 5 (1-strongly agree, 2-somewhat agree, 3-neutral, 4-somewhat disagree and 5-strongly disagree) based on the following six parameters: 1) 2) 3) 4) 5) 6) High quality of service Ease of access & convenient location Good promotional schemes Good customized services Impressive Marketing Low brokerage and other charges

Based on the above criteria the following frequencies were obtained which are given from next page onwards and are mentioned Broker wise.

99

INDIABULLS
High quality of services(Indiabulls) Cumulative Percent 23.2 52.8 91.8 99.8 100.0

Frequency Valid strongly agree agree neutral disagree strongly disagree Total 116 148 195 40 1 500

Percent 23.2 29.6 39.0 8.0 .2 100.0

Valid Percent 23.2 29.6 39.0 8.0 .2 100.0

Ease of access & convenient location(Indiabulls) Cumulative Percent 16.8 52.2 84.2 97.4 100.0

Frequency Valid strongly agree agree neutral disagree strongly disagree Total 84 177 160 66 13 500

Percent 16.8 35.4 32.0 13.2 2.6 100.0

Valid Percent 16.8 35.4 32.0 13.2 2.6 100.0

Good promotional schemes(Indiabulls) Cumulative Percent 15.4 54.2 81.8 98.0 100.0

Frequency Valid strongly agree agree neutral disagree strongly disagree Total 77 194 138 81 10 500

Percent 15.4 38.8 27.6 16.2 2.0 100.0

Valid Percent 15.4 38.8 27.6 16.2 2.0 100.0

Good customized services(Indiabulls) Cumulative Percent 19.4 50.8 88.8 99.8 100.0

Frequency Valid strongly agree agree neutral disagree strongly disagree Total 97 157 190 55 1 500

Percent 19.4 31.4 38.0 11.0 .2 100.0

Valid Percent 19.4 31.4 38.0 11.0 .2 100.0

100

Impressive marketing(Indiabulls) Frequency Valid strongly agree agree neutral disagree strongly disagree Total 88 111 191 102 8 500 Percent 17.6 22.2 38.2 20.4 1.6 100.0 Valid Percent 17.6 22.2 38.2 20.4 1.6 100.0 Cumulative Percent 17.6 39.8 78.0 98.4 100.0

Low brokerage & other charges(Indiabulls) Frequency Valid strongly agree agree neutral disagree strongly disagree Total 94 128 167 98 13 500 Percent 18.8 25.6 33.4 19.6 2.6 100.0 Valid Percent 18.8 25.6 33.4 19.6 2.6 100.0 Cumulative Percent 18.8 44.4 77.8 97.4 100.0

ANALYSIS
Parameter No. of respondents either strongly agreeing or agreeing No. of respondents either strongly disagreeing or disagreeing Rank based on agreeing Rank based on disagreeing

High quality of services Ease of access & convenient location Good promotional schemes Good customized services Impressive marketing Low brokerage & other charges

264 261 271 254 199 222

41 79 91 56 110 111

2 3 1 4 6 5

6 4 3 5 2 1

The strongest factor for Indiabulls is its Promotional Schemes(as perceived by the respondents).

101 The weakest factor for Indiabulls is its Brokerage rate(as perceived by the respondents).

SHAREKHAN
High quality of services(Sharekhan) Cumulative Percent 17.4 56.6 86.4 99.0 100.0

Frequency Valid strongly agree agree neutral disagree strongly disagree Total 87 196 149 63 5 500

Percent 17.4 39.2 29.8 12.6 1.0 100.0

Valid Percent 17.4 39.2 29.8 12.6 1.0 100.0

Ease of access & convenient location(Sharekhan) Cumulative Percent 18.0 55.8 83.8 98.0 100.0

Frequency Valid strongly agree agree neutral disagree strongly disagree Total 90 189 140 71 10 500

Percent 18.0 37.8 28.0 14.2 2.0 100.0

Valid Percent 18.0 37.8 28.0 14.2 2.0 100.0

Good promotional schemes(Sharekhan) Cumulative Percent 18.8 76.8 93.2 99.8 100.0

Frequency Valid strongly agree agree neutral disagree strongly disagree Total 94 290 82 33 1 500

Percent 18.8 58.0 16.4 6.6 .2 100.0

Valid Percent 18.8 58.0 16.4 6.6 .2 100.0

Good customized services(Sharekhan) Cumulative Percent 32.2 65.6 90.0 96.0

Frequency Valid strongly agree agree neutral disagree 161 167 122 30

Percent 32.2 33.4 24.4 6.0

Valid Percent 32.2 33.4 24.4 6.0

102
strongly disagree Total 20 500 4.0 100.0 4.0 100.0 100.0

Impressive marketing(Sharekhan) Frequency Valid strongly agree agree neutral disagree strongly disagree Total 100 111 151 119 19 500 Percent 20.0 22.2 30.2 23.8 3.8 100.0 Valid Percent 20.0 22.2 30.2 23.8 3.8 100.0 Cumulative Percent 20.0 42.2 72.4 96.2 100.0

Low brokerage & other charges(Sharekhan) Frequency Valid strongly agree agree neutral disagree strongly disagree Total 80 211 136 67 6 500 Percent 16.0 42.2 27.2 13.4 1.2 100.0 Valid Percent 16.0 42.2 27.2 13.4 1.2 100.0 Cumulative Percent 16.0 58.2 85.4 98.8 100.0

ANALYSIS
Parameter No. of respondents either strongly agreeing or agreeing 283 279 384 328 211 291 No. of respondents either strongly disagreeing or disagreeing 283 81 34 50 138 73 Rank based on agreeing Rank based on disagreeing 4 2 6 5 1 3

High quality of services Ease of access & convenient location Good promotional schemes Good customized services Impressive marketing Low brokerage & other charges

4 5 1 2 6 3

103 The strongest factor for Sharekhan is its Promotional Schemes(as perceived by the respondents). The weakest factor for Sharekhan is its Marketing strategies(as perceived by the respondents).

RELIGARE
High quality of services(Religare) Cumulative Percent 10.6 41.4 67.6 92.4 100.0

Frequency Valid strongly agree agree neutral disagree strongly disagree Total 53 154 131 124 38 500

Percent 10.6 30.8 26.2 24.8 7.6 100.0

Valid Percent 10.6 30.8 26.2 24.8 7.6 100.0

Ease of access & convenient location(Religare) Cumulative Percent 12.8 34.4 64.2 93.4 100.0

Frequency Valid strongly agree agree neutral disagree strongly disagree Total 64 108 149 146 33 500

Percent 12.8 21.6 29.8 29.2 6.6 100.0

Valid Percent 12.8 21.6 29.8 29.2 6.6 100.0

Good promotional schemes(Religare) Cumulative Percent 20.4 43.2 73.6 98.8 100.0

Frequency Valid strongly agree agree neutral disagree strongly disagree Total 102 114 152 126 6 500

Percent 20.4 22.8 30.4 25.2 1.2 100.0

Valid Percent 20.4 22.8 30.4 25.2 1.2 100.0

Good customized services(Religare) Cumulative Percent 8.4 31.4 70.0

Frequency Valid strongly agree agree neutral 42 115 193

Percent 8.4 23.0 38.6

Valid Percent 8.4 23.0 38.6

104
disagree strongly disagree Total 129 21 500 25.8 4.2 100.0 25.8 4.2 100.0 95.8 100.0

Impressive marketing(Religare) Frequency Valid strongly agree agree neutral disagree strongly disagree Total 43 157 136 121 43 500 Percent 8.6 31.4 27.2 24.2 8.6 100.0 Valid Percent 8.6 31.4 27.2 24.2 8.6 100.0 Cumulative Percent 8.6 40.0 67.2 91.4 100.0

Low brokerage & other charges(Religare) Frequency Valid strongly agree agree neutral disagree strongly disagree Total 197 148 95 31 29 500 Percent 39.4 29.6 19.0 6.2 5.8 100.0 Valid Percent 39.4 29.6 19.0 6.2 5.8 100.0 Cumulative Percent 39.4 69.0 88.0 94.2 100.0

ANALYSIS
Parameter No. of respondents either strongly agreeing or agreeing 207 172 216 157 200 345 No. of respondents either strongly disagreeing or disagreeing 162 179 132 150 164 60 Rank based on agreeing Rank based on disagreeing 3 1 5 4 2 6

High quality of services Ease of access & convenient location Good promotional schemes Good customized services Impressive marketing Low brokerage & other charges

3 5 2 6 4 1

105

The strongest factor for Religare is its Brokerage rate(as perceived by the respondents). The weakest factor for Religare is Location of its branches(as perceived by the respondents).

HDFC SECURITIES
High quality of services(HDFC) Cumulative Percent 13.0 49.0 76.8 95.2 100.0

Frequency Valid strongly agree agree neutral disagree strongly disagree Total 65 180 139 92 24 500

Percent 13.0 36.0 27.8 18.4 4.8 100.0

Valid Percent 13.0 36.0 27.8 18.4 4.8 100.0

Ease of access & convenient location(HDFC) Cumulative Percent 7.0 36.6 55.4 93.4 100.0

Frequency Valid strongly agree agree neutral disagree strongly disagree Total 35 148 94 190 33 500

Percent 7.0 29.6 18.8 38.0 6.6 100.0

Valid Percent 7.0 29.6 18.8 38.0 6.6 100.0

Good promotional schemes(HDFC) Cumulative Percent 4.6 24.8 47.6 81.4 100.0

Frequency Valid strongly agree agree neutral disagree strongly disagree Total 23 101 114 169 93 500

Percent 4.6 20.2 22.8 33.8 18.6 100.0

Valid Percent 4.6 20.2 22.8 33.8 18.6 100.0

Good customized services(HDFC) Cumulative Percent 9.0 35.4

Frequency Valid strongly agree agree 45 132

Percent 9.0 26.4

Valid Percent 9.0 26.4

106
neutral disagree strongly disagree Total 91 167 65 500 18.2 33.4 13.0 100.0 18.2 33.4 13.0 100.0 53.6 87.0 100.0

Impressive marketing(HDFC) Frequency Valid strongly agree agree neutral disagree strongly disagree Total 13 208 153 89 37 500 Percent 2.6 41.6 30.6 17.8 7.4 100.0 Valid Percent 2.6 41.6 30.6 17.8 7.4 100.0 Cumulative Percent 2.6 44.2 74.8 92.6 100.0

Low brokerage & other charges(HDFC) Frequency Valid strongly agree agree neutral disagree strongly disagree Total 11 56 147 216 70 500 Percent 2.2 11.2 29.4 43.2 14.0 100.0 Valid Percent 2.2 11.2 29.4 43.2 14.0 100.0 Cumulative Percent 2.2 13.4 42.8 86.0 100.0

ANALYSIS
Parameter No. of respondents either strongly agreeing or agreeing 245 183 124 177 221 67 No. of respondents either strongly disagreeing or disagreeing 116 223 262 232 126 286 Rank based on agreeing Rank based on disagreeing 6 4 2 3 5 1

High quality of services Ease of access & convenient location Good promotional schemes Good customized services Impressive marketing Low brokerage & other charges

1 3 5 4 2 6

107

The strongest factor for HDFC is its High quality of services(as perceived by the respondents). The weakest factor for HDFC is its Brokerage rate(as perceived by the respondents).

KOTAK
High quality of services(Kotak) Cumulative Percent 9.4 21.2 31.8 79.0 100.0

Frequency Valid strongly agree agree neutral disagree strongly disagree Total 47 59 53 236 105 500

Percent 9.4 11.8 10.6 47.2 21.0 100.0

Valid Percent 9.4 11.8 10.6 47.2 21.0 100.0

Ease of access & convenient location(Kotak) Cumulative Percent 7.4 34.2 45.0 82.8 100.0

Frequency Valid strongly agree agree neutral disagree strongly disagree Total 37 134 54 189 86 500

Percent 7.4 26.8 10.8 37.8 17.2 100.0

Valid Percent 7.4 26.8 10.8 37.8 17.2 100.0

Good promotional schemes(Kotak) Cumulative Percent 7.6 35.4 59.4 93.0 100.0

Frequency Valid strongly agree agree neutral disagree strongly disagree Total 38 139 120 168 35 500

Percent 7.6 27.8 24.0 33.6 7.0 100.0

Valid Percent 7.6 27.8 24.0 33.6 7.0 100.0

Good customized services(Kotak) Cumulative Percent 6.8 38.2

Frequency Valid strongly agree agree 34 157

Percent 6.8 31.4

Valid Percent 6.8 31.4

108
neutral disagree strongly disagree Total 90 165 54 500 18.0 33.0 10.8 100.0 18.0 33.0 10.8 100.0 56.2 89.2 100.0

Impressive marketing(Kotak) Frequency Valid strongly agree agree neutral disagree strongly disagree Total 50 137 61 180 72 500 Percent 10.0 27.4 12.2 36.0 14.4 100.0 Valid Percent 10.0 27.4 12.2 36.0 14.4 100.0 Cumulative Percent 10.0 37.4 49.6 85.6 100.0

Low brokerage & other charges(Kotak) Frequency Valid strongly agree agree neutral disagree strongly disagree Total 45 115 201 123 16 500 Percent 9.0 23.0 40.2 24.6 3.2 100.0 Valid Percent 9.0 23.0 40.2 24.6 3.2 100.0 Cumulative Percent 9.0 32.0 72.2 96.8 100.0

ANALYSIS
Parameter No. of respondents either strongly agreeing or agreeing 106 171 177 191 187 160 No. of respondents either strongly disagreeing or disagreeing 341 275 203 219 252 139 Rank based on agreeing Rank based on disagreeing 1 2 5 4 3 6

High quality of services Ease of access & convenient location Good promotional schemes Good customized services Impressive marketing Low brokerage & other charges

6 4 3 1 2 5

109 The strongest factor for Kotak is its Customized services(as perceived by the respondents). The weakest factor for Kotak is its quality of services, although they have customized services but they are not of good quality (as perceived by the respondents).

ICICI direct
High quality of services(ICICI direct) Cumulative Percent 61.2 91.8 95.4 98.2 100.0

Frequency Valid strongly agree agree neutral disagree strongly disagree Total 306 153 18 14 9 500

Percent 61.2 30.6 3.6 2.8 1.8 100.0

Valid Percent 61.2 30.6 3.6 2.8 1.8 100.0

Ease of access & convenient location(ICICI direct) Cumulative Percent 30.2 60.0 70.2 97.8 100.0

Frequency Valid strongly agree agree neutral disagree strongly disagree Total 151 149 51 138 11 500

Percent 30.2 29.8 10.2 27.6 2.2 100.0

Valid Percent 30.2 29.8 10.2 27.6 2.2 100.0

Good promotional schemes(ICICI direct) Cumulative Percent 12.8 30.8 46.2 79.8 100.0

Frequency Valid strongly agree agree neutral disagree strongly disagree Total 64 90 77 168 101 500

Percent 12.8 18.0 15.4 33.6 20.2 100.0

Valid Percent 12.8 18.0 15.4 33.6 20.2 100.0

Good customized services(ICICI direct) Cumulative Percent 29.8 61.2

Frequency Valid strongly agree agree 149 157

Percent 29.8 31.4

Valid Percent 29.8 31.4

110
neutral disagree strongly disagree Total 67 72 55 500 13.4 14.4 11.0 100.0 13.4 14.4 11.0 100.0 74.6 89.0 100.0

Impressive marketing(ICICI direct) Frequency Valid strongly agree agree neutral disagree strongly disagree Total 243 177 66 13 1 500 Percent 48.6 35.4 13.2 2.6 .2 100.0 Valid Percent 48.6 35.4 13.2 2.6 .2 100.0 Cumulative Percent 48.6 84.0 97.2 99.8 100.0

Low brokerage & other charges(ICICI direct) Frequency Valid strongly agree agree neutral disagree strongly disagree Total 25 10 106 191 168 500 Percent 5.0 2.0 21.2 38.2 33.6 100.0 Valid Percent 5.0 2.0 21.2 38.2 33.6 100.0 Cumulative Percent 5.0 7.0 28.2 66.4 100.0

ANALYSIS
Parameter No. of respondents either strongly agreeing or agreeing 459 300 154 307 420 35 No. of respondents either strongly disagreeing or disagreeing 23 149 269 127 14 359 Rank based on agreeing Rank based on disagreeing 5 3 2 4 6 1

High quality of services Ease of access & convenient location Good promotional schemes Good customized services Impressive marketing Low brokerage & other charges

1 4 5 3 2 6

111

The strongest factor for ICICI direct is its High quality of services(as perceived by the respondents). The weakest factor for ICICI direct is its Brokerage rate(as perceived by the respondents).

Descriptive Statistics for Broker Rating

N High quality of services(Indiabulls) Ease of access & convenient location(Indiabulls) Good promotional schemes(Indiabulls) Good customized services(Indiabulls) Impressive marketing(Indiabulls) Low brokerage & other charges(Indiabulls) High quality of services(Sharekhan) Ease of access & convenient location(Sharekhan) Good promotional schemes(Sharekhan) Good customized services(Sharekhan) Impressive marketing(Sharekhan) Low brokerage & other charges(Sharekhan) High quality of services(Religare) Ease of access & convenient location(Religare) Good promotional schemes(Religare) Good customized services(Religare) Impressive marketing(Religare) Low brokerage & other charges(Religare) 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 Minimum 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Maximum 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 Sum 1162 1247 1253 1206 1331 1308 1203 1222 1057 1081 1346 1208 1440 1476 1320 1472 1464 1450 Mean 2.32 2.49 2.51 2.41 2.66 2.62 2.41 2.44 2.11 2.16 2.69 2.42 2.88 2.95 2.64 2.94 2.93 2.09 Std. Deviation .926 1.004 1.002 .930 1.040 1.078 .950 1.006 .789 1.069 1.149 .951 1.128 1.133 1.103 .995 1.114 .978

112
High quality of services(HDFC) Ease of access & convenient location(HDFC) Good promotional schemes(HDFC) Good customized services(HDFC) Impressive marketing(HDFC) Low brokerage & other charges(HDFC) High quality of services(Kotak) Ease of access & convenient location(Kotak) Good promotional schemes(Kotak) Good customized services(Kotak) Impressive marketing(Kotak) Low brokerage & other charges(Kotak) High quality of services(ICICI direct) Ease of access & convenient location(ICICI direct) Good promotional schemes(ICICI direct) Good customized services(ICICI direct) Impressive marketing(ICICI direct) Low brokerage & other charges(ICICI direct) Valid N (listwise)

500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5

1330 1538 1708 1575 1429 1778 1793 1653 1523 1548 1587 1047 767 1209 1652 1227 852 1967

2.66 3.08 3.42 3.15 2.86 3.56 3.59 3.31 3.05 3.10 3.17 2.90 1.53 2.42 3.30 2.45 1.70 3.93

1.069 1.103 1.139 1.208 .988 .941 1.211 1.241 1.095 1.158 1.258 1.161 .840 1.239 1.322 1.340 .809 1.037

113

Analysis of Descriptive Statistics for Broker Rating

Features High quality of service Ease of access & convenient location Good promotiona l schemes Good customized services Impressive Marketing Low brokerage and other charges

Indiabull s 2.32 2.49

Sharekha n 2.41 2.44

Religar e 2.88 2.95

HDF C 2.66 3.18

Kota k 3.59 3.31

ICIC I direct 1.53 2.42

Top Broker ICICI direct Sharekha n Sharekha n Sharekha n ICICI direct Religare

2.51 2.41 2.66 2.62

2.11 2.16 2.69 2.42

2.64 2.94 2.93 2.09

3.42 3.15 2.86 3.56

3.05 3.10 3.17 2.90

3.30 2.45 1.70 3.93

114

From the analysis the Brokers are arranged in Descending order of their popularity and perception in the minds of investors based on the given parameters. For calculation purposes their average means are taken into consideration.

Rank
First Second Third Fourth Fifth Sixth

Broker
Sharekhan Indiabulls ICICI direct Religare HDFC Kotak

Average Mean
2.37 2.50 2.56 2.73 3.12 3.18

115

116

Gender Analysis
Gender of respondent
Cumulative Percent 39.2 100.0

Valid

female male Total

Frequency 196 304 500

Percent 39.2 60.8 100.0

Valid Percent 39.2 60.8 100.0

G en d e r o f resp o nd e n t
fem ale m a le

39.2 60.8

Out of 500 persons surveyed majority were that of males. This number came out to be 304 accounting for 60.8% of the total sample. Hence our target consumers are more males than females.

117

Age Group Analysis

Age group of re sponde nt Frequency 9 72 200 202 17 500 Percent 1.8 14.4 40.0 40.4 3.4 100.0 Valid Percent 1.8 14.4 40.0 40.4 3.4 100.0 Cumulative Percent 1.8 16.2 56.2 96.6 100.0

Valid

<15 16-25 26-40 41-60 >60 Total

Age group of respondent

40 30 20 10 0 <15 16 -2526 -40 41 -60 > 60 Age group of respondent

Majority of our respondents were in age group of 26-40 (200) and 41-60 (202). Their cumulative frequency came out to be 402 which accounts for 80.4% of the total sample surveyed. Hence majority of our target consumers are those who have the capability to make decisions in the family and also who have the potential to purchase a television.

118

Occupation Analysis
Occupation of re sponde nt Frequency 94 73 316 17 500 Percent 18.8 14.6 63.2 3.4 100.0 Valid Percent 18.8 14.6 63.2 3.4 100.0 Cumulative Percent 18.8 33.4 96.6 100.0

Valid

self employed student service house wife Total

O c c u pa ti o n of re s p o nd e n t

70 60 50 40 30 20 10 0
self employed

student service house wife O c c u p a t i o n o f re s p o n d e n t

Out of 500 people surveyed, majority was in the service sector. This number was 316 accounting for 63.2% of the total sample.

119

Family Income Analysis

Annual family income Frequency 62 67 53 139 179 500 Percent 12.4 13.4 10.6 27.8 35.8 100.0 Valid Percent 12.4 13.4 10.6 27.8 35.8 100.0 Cumulative Percent 12.4 25.8 36.4 64.2 100.0

Valid

50001-100000 100001-150000 150001-200000 200001-250000 above 250000 Total

Annual family income

50001-100000 100001-150000 150001-200000 200001-250000 above 250000

Out of 500 people surveyed, majority annual family income was obtained from 2Lakhs 2.5Lakhs (139) and above 2.5 Lakhs. Hence majority of our consumers are either in the Mid-Middle Class or the Upper-Middle Class.

120 The number of earning members in the family also affects the above result. By and large this number was around two per family.

121

Brokerage vs Promotional Schemes

Brokerage rank * If promotions effect decision to choose a broker
If promotions effect decision to choose a broker no Brokerage rank 1 2 3 4 5 6 7 Total 23 23 82 33 31 21 28 241 yes 8 23 103 27 36 34 28 259 31 46 185 60 67 55 56 500

Total

If promotions effect decision to choose a broker

120 100 80 60 40 20 0 1 2 3 4 5 Brokerage rank 6 7

no yes

122 134 out of 262 (51.1%) respondents who ranked brokerage higher accepted that promotional schemes do effect their investment decision.

Price factor * If promotions effect decision to choose a broker

If promotions effect decision to choose a broker no Price factor very imp not imp neutral Total 111 68 62 241 yes 160 19 80 259 Total 271 87 142 500

If promotions effect decision to choose a broke r no yes

200

150

100

50

0 very imp not imp P r ic e f a c t o r neutral

160 out of 271 that is 61.77% of respondents who considered price as an important factor for while choosing a broker accepted that promotional schemes do effect their investment decision. So for the respondents who are price conscious 62% of them like promotional schemes.

123

Brand Name vs Income

Annual family income 100001150001200001150000 200000 250000 25 17 43 19 14 41 3 6 7 2 5 67 0 4 14 1 3 53 4 10 28 7 6 139

Brand name rank

1 2 3 4 5 6 7

50001100000 32 8 2 1 11 4 4 62

above 250000 60 50 26 17 23 2 1 179

Total 177 132 35 38 83 16 19 500

Total

136 out of 179 that is 76% respondents in income group above 250000 say that the brand name is most important factor while selecting a broker.

Quality of Services vs Income

Annual family income 100001150001200001150000 200000 250000 23 25 53 18 17 43 5 7 1 5 8 67 0 2 0 5 4 53 9 7 4 13 10 139

Quality of services rank

1 2 3 4 5 6 7

50001100000 14 27 9 0 3 2 7 62

above 250000 81 57 17 4 3 16 1 179

Total 196 162 40 20 11 41 30 500

Total

Quality of services offered is imp factor is all the income group but highest in above 250000 that is 86.59% while choosing a broker.

124

Online Support vs Income

50001100000 Online support rank 1 2 3 4 5 6 7 Total 4 13 4 5 25 8 3 62

100001150000

Annual family income 150001200001200000 250000 2 2 7 11 12 20 0 6 34 11 3 67 4 4 26 3 2 53 28 16 42 17 9 139

above 250000 9 33 23 38 43 18 15 179

Total 24 89 59 69 170 57 32 500

Online support is not as important factor compared to others factor in all income groups. It is imp factor for people around 35% in all the income groups while choosing a broker.

Customized Services vs Income

50001100000 Customiz ed services rank 1 2 3 4 5 6 Total 0 2 11 36 10 3 62

100001150000

Annual family income 150001200001200000 250000 1 0 5 0 3 4 6 34 10 0 53 21 71 37 1 139

above 250000 6 18 25 91 25 14 179

Total 12 27 79 267 95 20 500

16 35 13 2 67

125

For the income level above 2,50,000 Customized services is more important factor compared to other income groups. It is 28% important in this income group while selecting a broker.

Location of Broker vs Income

50001100000 Location of broker rank 1 2 3 4 5 6 7 Total 3 4 5 10 1 37 2 62

100001150000

Annual family income 150001200001200000 250000 8 4 14 4 3 6 5 6 6 1 3 0 21 21 53 14 7 1 68 29 139

above 250000 6 1 14 5 28 74 51 179

Total 35 18 39 31 36 215 126 500

15 23 67

Location of broker is imp factor while selecting a broker. It is more important in income group less than 200000.

Brokerage vs Income

50001100000 Brokerag e rank 1 2 3 4 5 6 7 Total 3 0 21 10 11 7 10 62

100001150000

Annual family income 150001200001200000 250000 7 1 7 7 4 19 34 5 4 2 3 53 41 23 18 13 18 139 5 6 3

above 250000 13 16 62 17 28 30 13 179

Total 31 46 185 60 67 55 56 500

27

12 67

126

For the income group 100001-150000 and 200001-250000 Brokerage is an important factor while choosing a broker.

Impressive Advertising vs Income

50001100000 Impressiv e advertisin g rank 1 2 3 4 5 6 7 Total 3 4 6 0 1 8 40 62

100001150000

Annual family income 150001200001200000 250000 1 4 11 8 0 7 8 0 0 21 20 53 22 1 8 24 66 139 3 0

above 250000 4 7 11 7 25 27 98 179

Total 23 26 57 11 34 109 240 500

10

29 16 67

Advertising by a broker is not an important factor in any income group that is considered by an investor while choosing a broker. So for the higher income group brand name and high quality of services are more important factors while for the lower income group other factors like brokerage rate and location of broker matter more. It is services, which matter most in the financial sector, and this is the discerning factor to rate any broker.

127

Investing Power vs Income

Investment in Near Future * Annual family income
50001100000 17 30 15 0 62 100001150000 Annual family income 150001200001200000 250000 9 23 34 18 12 0 53 75 30 0 139

Investment in Near Future

<1,00,000 1,00,0012,50,000 2,50,0015,00,000 above 5,00,000

above 250000 33 88 42 16 179

Total 116 250 110 24 500

39 11 8 67

Total

100 80 60 40 20 0 <1,00,000 1,00,0012 ,50,000 2,50,0015,00,000 above 5,00,000

Annual family income 50001100000 100001150000 1500012 00000 2 000012 50000 above 2 50000

Investment in Near Future

People in all the income levels like to invest in near future in a range of 1,00,0012,50,000. This is the range where around 50% people prefer invest. As the income level becomes higher the respondents are looking to invest more in the near future. Hence targeting these investors should be the prime aim of Religare.

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Investing Power vs Age Group

Investment in Near Future * Age group of respondent
Age group of respondent <15 Investment in Near Future <1,00,000 1,00,0012,50,000 2,50,0015,00,000 above 5,00,000 0 3 6 0 9 16-25 13 39 16 4 72 26-40 32 117 33 18 200 41-60 62 83 55 2 202 >60 9 8 0 0 17 Total 116 250 110 24 500

Total

120 100 80 60 40 20 0 <1,00,000 1,00,0012,50,000 2,50,0015,00,000 above 5,00,000

Age group of respondent <15 16-25 26-40 41-60 >60

Investment in Near Future

The younger generation is more willing to invest more money in near future. This may be due to the fact that they have more risk taking appetite as the equity market is still volatile. In age group of above 60 no one prefers to invest a large amount in the near future.

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Low Brokerage Parameter vs Price Factor For Religare

Low brokerage & other charges (Religare) * Price factor
Price factor Low brokerage & other charges (Religare) strongly agree agree neutral disagree strongly disagree Total very imp 106 67 63 9 26 271 not imp 35 20 18 14 0 87 neutral 56 61 14 8 3 142 Total 197 148 95 31 29 500

173 out of 271 that is 63.28% respondents, for whom price and brokerage is an important factor while choosing a broker consider Religare as a broking house providing low brokerages to suit their needs.

The above should be Religares target segment as one of the important discerning factors of it is lowest brokerage in the market but with excellent services.

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Limitations & Problems Faced

The respondents selected to be interviewed were not always available and willing to cooperate. In some cases the respondents were found to not have the knowledge, opinion, attitudes or facts required additionally uninformed response errors and response styles that led to survey error. The sample size of the survey is only 500, which cannot determine the investing behaviour of the total population. The survey consisted of only196 females and 304 males, which led to gender biasness. The sample has been drawn from the NCR region where the disposable income and the investing income of an individual is very high and hence analysis of annual family income does not reflect that of whole on India. It has been observed that ICICI direct & Indiabulls are market leaders in the Equity segment and most of the respondents interviewed were attached to them as their clients, which led to biasness in the analysis of the survey. Respondents generally gave rankings arbitrarily to those brokers of which they had little or no information. Respondents were apprehensive in giving their correct income level and some gave them incorrectly. Many respondents were unwilling to give their contact details specially their Telephone numbers. Respondents generally did not understand the Likerts Scale question (Q.18) easily and perceived filling it as a tedious job. Despite the unbiased opinion and efforts the possibility of technical exceptions cannot be ruled out. The statistical analysis with various automated tools might have computational errors.

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CONCLUSIONS AND FINDINGS

INVESTOR PROFILE BASED UPON SEGMENTATION

Low Income DEMOGRAPHICS Gender Age Income (p.a.)(Rs.) Occupation

Lower Middle Income Male 30-40 years 100001-150000 e.g. General store owner Considers investment as a tool to secure future & makes planned investments.

Mid middle & Upper Middle Income Male/Female 35-45 150001-250000 e.g. Middle level executive, professionals Considers investment as basic necessity. He is interested in the latest but feasible investment options available in the market but is a little price conscious & makes planned investments.

High income

Male 25-35 years Up to 100000 e.g. clerk Considers investment to be the last option. He will make only the safest investment with lowest brokerage charged.

PSYCHOGRAPHICS

Male/Female 40-55 years Above 250000 e.g. Senior level executive, Businessman Investment is the basic necessity and a status symbol for him. Always wants to invest in the latest and the most unique plan available.

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-Recognize the need to invest in equity only when absolutely necessary but will always be apprehensive. -He will search for information through advertisement seen, brokers influence. - He will not evaluate too many alternatives as his decision is constrained by price and brokers influence. - Investment decision will be dependent on self. - Recognizes the need to invest in equity market to secure his future. - His information search is dependent on advertisements seen and friends influence. -He will survey the market to evaluate his alternatives before choosing a broker. -Investment decision will be influenced by spouses and familys attitude. -Safety in long run -Moderate but sure returns -Convenient location of broker -Assistance from brokers side. -Recognizes the need to invest in equities for gaining high returns. -His information search will be dependent on surveying the market and finding a good broker and good investment options. -He will evaluate his alternatives on the basis of quality of services provided and name & reputation of broker. -Purchase decision will be taken by the entire family. -He will also look Into the post investment factors like after sales service and customized services provided. -Recognizes the need to invest in latest and unique plans available in the market. -He will search for information through advertisements and Magazines. -He will evaluate his alternatives on the basis of features offered, quality of the services and the brokers reputation and past records. - Investment decision will be taken by him if he is risk averse; otherwise will be influenced by the family. -After sales service and customized services offered by broker will be a very important factor for him -Best and unique plans with high returns -Can go for riskier options for higher returns. -Hassle free transfer of cash -Past records of broker -Volumes are highest, hence considers best service. -Complete market knowledge -All equities in bulk -Derivatives -Commodities -Bullion -PMS -Short selling in equities -Unique MFs with investment constraints -FOREX Above 5,00,000

DECISION MAKING

BENEFITS SOUGHT BY CONSUMER

-Safety -Hedging -Hassle free trading -No high volumes involved -No liquidity crisis

-Brokers reputation -Services of high quality -Constant update of the market -Customized services -Less human intervention while trading -Online support -High returns -Considers brokerage as volumes are high

PRODUCT THAT MAY BE OFFERED BY BROKER

-Debt market -Mutual funds -A rated equities

-Mutual funds of equity type -Equities -Less of debt market -Insurance -Personal Loans Up to 1,00,000

-Riskier equities -Stable commodities -Unique MFs -Derivatives (F & O) -Insurance

VALUE PER IN VE ST M EN T

<50,000

Up to 5,00,000

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CURRENT MARKETING STRATEGIES ADOPTED BY RELIGARE SECURITIES LTD.

MARKETING MIX STRATEGY Basically the company has two type of productsR-ALLY and R-ACE. R-ALLY has a software based terminal called ODIN and R-ACE is totally web based. The customers of R-ALLY can do both online and offline trading but customers of R-ACE does only online trading. Penetrating pricing method has been adopting by the company. They offer low cost services to the clients existing with other brokers. The Annual maintenance charge of R-ALLY is @ Rs. 250/- and R-ACE is toally free. PRICE No transaction charge for BUY/SELL of securities is

PRODUCT

134 charged in case of R-ALLY. The company has fairly transparent pricing structure and does charge only necessary NSDL charges along with the brokerage which it earns. Promotion is a weak point of the company. The company does not indulge in aggressive promotional campaign and thus awareness for the company is low among investors. The TV advertisements are only shown over Business channels and Newspaper advertisements are not given much importance (only advertised in Economic times and Business and Economy Magazine and that too at the last page) Only one canopy could be managed in past 60 days shows the lack of concentration towards promotion of the brand. PLACE Presently Religare has 150 branches all over India but the target at the end of 2006 is 350 branches which is a fair enough number for a new entrant.

PROMOTION

RECOMMENDATIONS FOR RELIGARE SECURITIES LTD

Based on the in depth analysis of the companys strategies and its competitors, I would recommend the following strategies: 1.BRAND AWARENESS There is a low degree of brand awareness among investors about Religare. The reason being recent change in name from Fortis to Religare securities. The company should take measures to promote the brand Religare in the minds of consumer. Currently they are using Ranbaxys name as a promoter company but it has to come to a good effect. 2.MARKETING There are some flaws in marketing & promotion of the company too. The company uses minimum of media resourses to market itself where as competitors like Indiabulls and Sharekhan are very aggressive in promoting their company.

135 Religare advertisements in economic times are also wrongly placed. Generally Religare advertisement is printed at the last page of Economic times which is not a good idea because people dont come to last page of Economic times. They simply overlook that. This Last page advertisement would do good in Times of India but not in Economic times. 3.ONLINE PORTAL FOR INTERESTED CLIENTS. The company should have a online portal for interested clients where people can log on, fill the necessary information and then their sales executives can get back to these clients. 4. UNTAPPED MARKET The market place like Trans Yamuna areas of Shahdra, Seelam pur, Laxmi Nagar are untouched. This is a huge potential market place in that place and if the company opens its another branch (other than Preet Vihar, which is not satisfactory for a huge place) it can increase its business.

5. NUMBER OF RELATIONSHIP MANAGERs Relationship manager plays an important role in financial service sector because he is the person with whom clients are linked. It has been observed that there is a immediate shortage of relationship managers in the company. 1 or 2 relationship managers per branch would not be enough for such a huge client base. Also the company needs to restructure the role of relationship manager and differentiate him from a Sales executive or IT executive. 6. BANK TIE UPs Currently, Religare has tie ups with ICICI, HDFC, UTI Bank, OBC, CITI Bank. The company needs to increase the number of tie ups in the future because of its web based service R-ACE where customer has to transfer the amount to his trading account online. 7. TARGET THE IPO COMPANIES Religare can target new customers through the company which is going for an IPO.

136 For eg. A company called Shirdi Industries ltd. came out with an IPO. Now what Religare could have done is Tapped the employees of this company and open their Demat accounts with itself because the employees would apply or through some channels try to get the shares of the company.

Bibliography
1) AMFI research division 2) www.valueresearchonline.com 7) TV Veopar journal (November 2005, investors guide) 9) TV Veopar journal (Gold Book, a collectors issue) 10) www.netmba.com 13) www.indiastat.com 14) www.icra.in 15) 16) 17) www.religare.in www.prudentialiciciamc.com www.kotaksecurities.com

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18) 19) 20) 21) 22) 23) 24) 25) 26)

www.investsmart.com www.google.com www.reuters.com www.sharekhan.com www.indiabulls.com www.ICICIdirect.com Economic Times Business Standard NCFM reading material for equity markets

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FAQS About Trading With a DP

What is a depository? A depository can be compared to a bank. A depository holds securities (like shares, debentures, bonds and units) of investors in electronic form. Besides holding securities, a depository also provides services related to transactions in securities. What are the benefits of depository system? The benefits of participating in a depository are:

immediate transfer of securities; no stamp duty on transfer of securities; elimination of risks associated with physical certificates such as bad delivery, fake securities etc; reduction in paperwork involved in transfer of securities;

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reduction in transaction cost; nomination facility;

change in address recorded with Depository Participant (DP) gets registered with all companies in which investor holds securities electronically, eliminating the need to correspond with each of them separately; transmission of securities is done by DP, eliminating correspondence with companies; convenient method of consolidation of portfolios/accounts; holding investments in equity and debt instruments in a single account.

What is a DP? As an investor you open a securities account with a DP. DPs are attached to the depositories very much the same way as commercial banks are attached to RBI. All interactions including account opening, dematerialization, transactions, pledge etc are done through the DP.

How do I select a DP? Are all DPs the same? You can select your DP to open a demat account just like you select a bank for opening a savings account. Some of the important factors for selection of a DP can be: Convenience: proximity to the office/residence, business hours. Comfort: reputation of the DP, past association, range of services etc. Find out if the DP is in a position to give the specific service you may need. Cost: the service charges levied by DP and the service standard. What should I do when I want to open an account with a DP? The process of opening an account with a DP is similar to the opening of a bank account. You can approach any DP of your choice and fill up an account opening form. At the time of opening an account, you have to sign an agreement with DP in a National Securities Depository Ltd (NSDL) prescribed standard agreement, which details your rights and duties and those of your DP. All investors have to submit their proof of identity and proof of address along with the prescribed account opening form.

140 Proof of identity: your signature and photograph must be authenticated by an existing demat account holder with the same DP or by a bank manager. Alternatively, you can submit a copy of Passport, Voters ID card, Driving license or PAN card with photograph. Proof of address: you can submit a copy of Passport, Voters ID card, Driving license, PAN card with photograph, Ration card or Bank passbook as proof of address. You must remember to take original documents to the DP for verification. Passport-size photograph. What is dematerialization? The dematerialization system is an alternative to the physical existence of securities. In this system securities are converted into the electronic form and deposited in a depository account in the investors name.

In order to dematerialize certificates, an investor will have to first open an account with a DP and then request for the dematerialization of certificates by filling up a Dematerialization Request Form (DRF), which is available with the DP, and submitting the same along with the physical certificates. The investor has to ensure that before the certificates are handed over to the DP for demat, they are defaced by marking "Surrendered for Dematerialization" on the face of the certificates. Can I dematerialized any share certificate? You can dematerialize only those certificates that are already registered in your name and are in the list of securities admitted for dematerialization at NSDL. All the scrips included in S&P CNX Nifty and BSE Sensex have already joined NSDL. This list has more than 2,800 companies and is steadily growing. Can my electronic holdings be converted back into certificates? Yes. If you wish to get back your securities in physical form, all you have to do is to request your DP for Rematerialisation of the same. "Rematerialisation" is the term used for converting electronic holdings back into certificates. Your DP will forward your request to NSDL after verifying that you have the necessary balances. NSDL in turn will intimate the registrar who will print the certificates and dispatch the same to you. What is the procedure for selling dematerialized securities? The procedure for selling dematerialized securities in stock exchanges is similar to the procedure for selling physical securities. Instead of delivering physical securities to the

141 broker, you instruct your DP to debit your account with the number of securities sold by you and credit your broker's clearing account. This delivery instruction has to be given to your DP using the delivery instruction booklet received from the DP at the time of opening the account. The procedure for selling securities is given here below:

Investor sells securities in any of the stock exchanges linked to NSDL through a broker. Investor gives instruction to DP to debit his account and credit the broker's (clearing member pool) account. Before the pay-in day, investor's broker gives instruction to his DP for delivery to clearing corporation. The broker receives payment from the stock exchange (clearing corporation). The investor receives payment from the broker for the sale in the same manner payment is received for a sale in the physical mode.

What should I do if I want to pledge electronic securities? The procedure is as follows: Both you (pledgor) as well as the lender (pledgee) must have depository accounts; You must initiate the pledge by submitting to your DP the details of the securities to be pledged in a standard format (available with your DP); The pledgee should confirm the request through his DP; Once this is done, your securities are pledged;

All financial transactions between the pledgor and the pledgee are handled outside the depository system. How will I know that my DP has updated my account after each transaction? Your DP will give you a transaction statement periodically, which will give your current balances and the various transactions you have done through the depository account. If you so desire, your DP may provide the transaction statement at intervals shorter than the stipulated ones, probably at a cost. Can I freeze my account? Yes. The depository system provides the facility to freeze the depository accounts for any debits or for both debits and credits. In an account which is "freezed for debits", no debits

142 will be permitted from the account, till the time it is de-freezed. This is the additional security feature for the benefit of the investors.

NEW SCHEDULE OF CHARGES FOR DEPOSITORY SERVICES WITH RELIGARE

(Individual / Corporate)
PARTICULARS CHARGE STRUCTURE

ACCOUNT OPERATIONS

Account Opening Annual Operation AMC Charges Speed e A/c (Password

NIL Rs 250/- p.a. Rs 350/- p.a. (Includes NSDL Charges Rs 100/-p.a.)

Users)

Documentation Charges (Stamp Paper and other charges)

Rs 60/- per account

TRANSACTION CHARGES

Credit to the Account (Buy) Debit to the Account (Sale)

NIL

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Delivery Given to Religare A/c Delivery Given to any other Account

Actual NSDL Charges Rs 25/-per debit or .01% of the value of securities whichever is higher

n Courier Charges

Dematerializatio

Rs 2/- per Certificate Rs. 30/- per request Rs 30/- per rejection Rs 20/- per request + Courier Charges Rs 50/- per request or 0.01% of the value of securities whichever is higher Rs 20/- per booklet

Demat Rejection Charges Rematerialisation

Pledge Creation / Closure / Invocation

Delivery Instruction Booklet

Terms & conditions 1) Clients will be required to pay Rs 500/- upfront for each demat account which will be adjusted towards Depository service charges. Client will be required to replenish the balance immediately when it falls below Rs 200/-. 2) DP Charges of Broking Clients will be debited to their Trading accounts. 3) Any other service, which is not mentioned above, will be charged separately as per the rates applicable from time to time. Out of pocket expenses including overseas consignment will be charged extra on actual basis. 4) The value of transactions will be in accordance with rates provided by NSDL.

5)

All charges are subject to revision at the discretion of Religare after giving a notice of 30 days. 6) All charges are payable on monthly basis and delayed payment will be liable for interest @ 2% PM. 7) Religare may suspend/freeze the depository services of the account holder on nonpayment of outstanding bills.

Images Of Canopy Organized At Rohini

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