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SUMMER TRAINING PROJECT REPORT ON COMPARISON BETWEEN RELIGARE AND STOCK TRADING SERVICE Submitted in partial fulfilment of the

requirements for the degree of Master of Business Administration Submitted to Department Of Management Studies Submitted By SUSHANT TRIPATHI Roll No. 09/MBA/006

JSS ACADEMY OF TECHNICAL EDUCATION NOIDA 201307 U.P.Technical University, Lucknow (2009-2011)

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JSS MAHAVIDYAPEETHA

JSS ACADEMY OF TECHNICAL EDUCATION, NOIDA

DEPARTMENT OF MANAGEMENT STUDIES

CERTIFICATE

This is to certify that Sushant Triapthi has successfully completed

the Summer Project

titled Comparison Between Religare & Other Stock Trading Services from Religare Securities Ltd, NOIDA Sec-18 as the partial fulfillment of the requirement for the award of degree of Masters of Business Administration (M.B.A.) by U.P. Technical University Lucknow during batch 2009-11. Dr. S.K.Banerjee Head, Department of Management Studies, JSSATE, Noida

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DECLARATION

It gives me immense pleasure that I got an opportunity to work with Religare Securities Ltd. and also to undertake such a wonderful project. The professionalism and the great work environment has helped me in shape-up my personality and enhance my knowledge. It was an educating and enriching experience for me. Now that I have completed my project work, thus, it is but natural to thank all those who made this project an outstanding experience. First and foremost, I extend my sincere gratitude to my project guide Mr.Baljeet Singh (Sr RM) RSL, Noida for his invaluable suggestions and the time he has devoted for successful execution of this project work. I thank him for giving me insights, required inputs and proper direction throughout the project.

PLACE:

NOIDA

Sushant Tripathi Date : mm/dd/yyyy (Research Student)

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This project aims at understanding the workings of an organization, its external and internal processes, the product and services it offers to its customers. Religare Securities Limited has provided an in depth knowledge about how an organization functions, the challenges it faces and its earnest endeavour to overcome them in its objective of becoming the no.1 service provider in its product line. I thank Mr. VIPUL GUPTA (Branch Manager) for selecting me as a management trainee in his organization. I would especially like to thank Mr. BALIJEET SINGH (Senior Relationship manager) for his guidance and motivation in helping me to understand the working of the organization and the challenges ahead in the organization and the corporate world as a whole. My regards also extends to Mr. KAPIL GUPTA (RM), for providing an insight in the organization and their help and support and clearing my doubts and problems.

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TABLE OF CONTENT

CHAPTER-I EXECUTIVE SUMMARY 10

CHAPTER-II INTRODUCTION OF PROJECT 2.1 INTRODUCTION 2.2 STATEMENT OF PROBLEM 2.3 OBJECTIVE 2.4 PROBLEM DEFINETION 2.5 WHY INVESTOR CHOOSE RELIGARE 2.6 INVESTOR EXPECTATAIONS 12 14 15 16 17 18

CHAPTER-III PROFILE OF THE ORGANIZATION 3.1 INTRODUCTION 3.2 FINANCIAL SERVICE INDUSTRY 3.3 INDIAN FINANCIAL SECTOR 21 22 24

3.4 RECENT ADVANCEMENT IN THE INDUSTRY 3.5 RANBAXY GROUP 3.6 RELIGARE: THE COMPANY 3.7 COMPANY STRUCTURE
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26 28 30 34

3.8 COMPETITORS OF RELIGARE

35

3.9 THE RELIGARE AGE 3.10 THE REACH OF RELIGARE 3.11 DEVISION OF RELIGARE 3.12 COMPETITIVE ADVANTAGE

37 38 39 48

CHAPTER-IV RESEARCH DESIGN AND METHODOLOGY 4.1 INDRODUCTION TO RESEARCH METHODOLOGY 4.2 OBJECTIVE OF RESEARCH 4.3 RESEARCH DESIGN 4.4 SOURCES OF DATA COLLECTION 4.5 LIMITATION OF STUDY 50 51 52 53 54

CHAPTER-V DATA REPRESENTATION, ANALYSIS & INTERPRETATION 5.1 DEMATERIALISATION 5.2 OPENING OF DEMAT ACCOUNT 5.3 COMPARISON TABLE OF BROKERAGE CHARGES IN INDIA 5.4 TOP 10 BROKING FIRM IN INDIA 5.5 BROKERS BROKERAGE RATE REMARK 56 57 67 69 72

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CHAPTER-VI RECOMMENDATION AND CONCLUSION 83

CHAPTER-VII BIBLIOGRAPHY 86

CHAPTER-VIII ANNEXTURE 88

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CHAPTER - I

EXECUTIVE SUMMARY

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This project provides an insight into the financial service industry of which insurance, stocks and mutual funds form an integral part. The project focuses on the dematerialization and stock trading services provided by Religare. The project also includes the services industry in which Religare plays an important role. The organization structure, history of the company, ownership patterns, divisions and branches and different departments in the organization are also mentioned. The project provides an overall view on the financial standing of the company, products offered and services provided the competitors in the industry and the competitive edge of Religare to have a distinctive position in the industry. Lastly the project involves an analysis and comparative study of the product of Religare with two of its competitors and recommendations to provide a horizon of improvement and growth.

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CHAPTER II

INTRODUCTION

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PROJECT

INTRODUCTION
The stock broking industry is a service-oriented industry where brokers act as agents for investors when a security is bought or sold and are compensated with a commission. Investors would not hesitate to switch to alternative brokerage houses if they do not obtain satisfaction. Providing quality service and hence customer satisfaction should thus be

recognised as a key strategy and a crucial element of long-run success and profitability for stock broking businesses. Little has been done towards understanding the expectations investors hold from their stockbrokers. Since expectations serve as benchmark to gauge the service level of brokers, the delivery of services that exceed customer expectations is one strategy that can give firms a competitive advantage. Therefore, it would seem beneficial for stockbrokerage firms, in a dynamic economic environment like India, to provide service at a good scale of quality. In addition, stockbrokers have much to gain in understanding investors expectations of them, as this would help the stockbrokers to serve their customers better and foster long-lasting relationship with their customers. This study therefore aims to provide a platform for understanding whta the customer needs and what is being provided to bridge the gap between customer expectation and the actual service rendered. This information would be useful for those who would like to control and improve the performance of their service.

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The project would focus mainly on RELIGARE understanding of the requirements of the customer and its endeavour to provide what the customer expects and hence showing that it is the market leader in the stock broking industry.

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STATEMENT OF PROBLEM

To provide RELIGARE with meaningful recommendation (if any) to initiate a change in their products (Demat and trading) after questioning prospective investors regarding the fulfilment of their expectation.

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OBJECTIVE

To understand and analyse the expectations of customers of RELIGARE in today market scenario and RELIGAREs efforts to provide the best services at the most competitive prices and provide recommendations of any deviation from that purpose.

Stating the objective of the study. Mapping out a questionnaire to understand the expectations of customers. Identifying problems being faced by customers Analysing RELIGAREs product in meeting these expectations. Finding deviations if any.

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PROBLEM DEFINITION

Understanding expectation of investors.

Analysing the problems being faced by investors.

Understanding RELIGAREs product to meet these problems.

Mapping a questionnaire to analyse investors satisfaction of RELIGARE product.

Contemplating the information.

Providing meaningful analysis of the problem.

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Why investors choose Religare?? It is a Ranbaxy promoter group company.

Diverse portfolio and a lot of products under one roof.

Has one of the best brokerage plans.

Attractive brand.

Relationship managers attached to customers.

Equity research team (one of the best in the market).

Controlled and low cost service structure.

Large volume processing structure.

Expertise in coordinating multi-location responses.

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INVESTORS EXPECTATIONS

Providing basic knowledge to investors so as to help them in understanding the stock market and making proper decisions in stocks

Providing an averagely priced product so as to appeal to the investors and have a penetration effect in the market.

Timely input (tips, entry and exist) to be provided to prospective clients so that they can maximize their wealth by making smart decisions.

Updated info about client accounts on amounts outstanding, payment, withdrawals, shortages etc if any.

Ancillary services like providing payout facilities, direct transfers, timely payments and receipts, confirmations about order receiptance and delivery of stocks, cheques, dematerialised shares etc.

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Infrastructure facilities like proper sitting arrangements, water and other refreshments, clean facility and a clean working environment.

Cordial relation with clients should be maintained so as to promote goodwill and business of the broker.

Proper availability of RMs to attend to clients requests so as to minimize delays in order reacceptance and minimizing customer dissatisfaction.

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CHAPTER III

PROFILE OF THE ORGANIZATION

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INTRODUCTION

The stock broking industry is a service-oriented industry where brokers act as agents for investors when a security is bought or sold and are compensated with a commission. Investors would not hesitate to switch to alternative brokerage houses if they do not obtain satisfaction. Providing quality service and hence customer satisfaction should thus be

recognised as a key strategy and a crucial element of long-run success and profitability for stock broking businesses. Little has been done towards understanding the expectations investors hold from their stockbrokers. Since expectations serve as benchmark to gauge the service level of brokers, the delivery of services that exceed customer expectations is one strategy that can give firms a competitive advantage. Therefore, it would seem beneficial for stockbrokerage firms, in a dynamic economic environment like India, to provide service at a good scale of quality. In addition, stockbrokers have much to gain in understanding investors expectations of them, as this would help the stockbrokers to serve their customers better and foster long-lasting relationship with their customers. This study therefore aims to provide a platform for understanding whta the customer needs and what is being provided to bridge the gap between customer expectation and the actual service rendered. This information would be useful for those who would like to control and improve the performance of their service. The project would focus mainly on RELIGARE understanding of the requirements of the customer and its endeavour to provide what the customer expects and hence showing that it is the market leader in the stock broking industry.
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Financial Services Industry The financial services industry broadly known as the money market has been in existence since the late 1990s.The finance industry encompasses a broad range of organizations that deal with the management of money. Among these are:Banks Credit financers Insurance companies Consumer finance companies Stock brokers Investment funds Government sponsored enterprises Other financial services Intermediation or advisory services - These services involve stock brokers (private client services) and discount brokers. Stock brokers assist investors in buying or selling shares. Primarily internet-based companies are often referred to as discount brokerage. Full service and private client firms primarily assist execute trades and execute trades for clients with large amounts of capital to invest, such as large companies, wealthy individuals, and investment management funds.

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Venture capital - Venture capital is a type of private equity capital typically provided by professional, outside investors to new, high-potential-growth companies in the interest of taking the company to an IPO or trade sale of the business. Conglomerates - A financial services conglomerate is a financial services firm that is active in more than one sector of the financial services market e.g. life insurance, general insurance, health insurance, asset management. A key rationale for the existence of such businesses is the existence of diversification benefits that are present when different types of businesses are aggregated i.e. bad things don't always happen at the same time.

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THE INDIAN FINANCIAL SECTOR The Indian financial services industry has experienced significant growth in the last few years. There has been a considerable broadening and deepening of the Indian financial markets due to various financial market reforms undertaken by the Indian regulators, the introduction of innovative financial instruments in the recent years and the management and brokerage have been liberalized to allow private sector involvement, which has contributed to the development and modernization of the financial services sector. This is particularly evident in the non-banking financial services sector, such as brokerage, resident mortgage and insurance services. Where new products and expanding delivery channels have helped these sectors to achieve high growth rates recently. Financial services accounted for approximately 14%of the total GDP. Derivatives Trading, Demutualization and Depositories Act to assist market participants in managing risks better than through hedging and arbitrage, the Securities Contracts(Regulation) Act,1956 was amended to lift the ban on options in securities and was further amended to include derivatives so that the entire regulatory could apply to derivative trading also. Derivative trading commenced in June 2000 in NSE and BSE. The government proposed in March 2001 to corporatize the stock exchanges and thereby segregate ownership, management and trading membership. A tax incentive to facilitate corporatization and demutualization process. The NSE has adopted a demutualised governance structure where ownership, management and trading are separates to help reduce conflicts of interest.
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The settlement system on stock exchanges gave rise to settlement risk due to lapse of time before trades were settled. A significant proportion of transactions ended up as bad deliveries due to non-compliance with paperwork. To obviate this problem, the Depositories Act 1996 was passed. All actively traded scripts are now held, traded and settled in uncertificated form.

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Recent advancements in the industry

With market sentiment turning positive due to the formation of a stable newly elected government, the ripple effect is likely to felt across all the financial services in India.

Financial services and real estate sector rose by 9.5 per cent in the first quarter of 2009-10.

Slashing interest rates, lowering factory levies and more than doubling the limit on foreign investment in corporate bonds has led to rapid growth in the financial sector.

April-May 2009 saw increased inflow in to equity with investors steadily turning positive on equity with net investment of mutual funds in debt almost getting tripled.

Indias market capitalization (m-cap) has touched US$ 1.04 trillion making it the ninth largest in the world.

The Indian stock market has currently responded to the optimism of reforms by the new stable government and its continuity in policies.

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Falling commodity price will ease input cost of the industries. Government policies to boost the economy.

Inflation at record lows with lower crude price. As interest rate in developed economy is record low, India could attract investment.

Reducing interest rates provide fuel to the recession economy making the financial system more secure.

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RANBAXY GROUP

RELIGARE SECURITIES LIMITED Company history:Religare Securities limited Incorporated in 1984, promoted by Ranbaxy group, Religare Enterprises (REL) is the holding company of 11 business subsidiaries.

Each of its subsidiaries is engaged in a wide spectrum of financial products and services targeted at retail, high-net worth individuals, corporate and institutional clients.

The services offered by the group include : Share broking, Financing loans against shares, IPO financing, Distribution of mutual funds, Insurance broking, Commodity broking, Wealth management advisory business, Private equity, Merchant banking and Trading in arts and artifacts among others.
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More than 90% of revenue drivers for the company are its retail equity broking arm Religare Securities and Religare Finvest, which finances loans against shares.

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RELIGARE:THE COMPANY

Religare Enterprises Limited (REL), is one of the leading integrated financial services groups of India.

The company offers a diverse bouquet of services ranging from equities, commodities, insurance broking to wealth management, portfolio management services, personal financial services, investment banking and institutional broking services.

The services are broadly clubbed across three key business verticals- Retail, Wealth management and the Institutional spectrum.

Religare Enterprises Limited is the holding company for all its businesses, structured and being operated through various subsidiaries.

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NAME OF THE ORGANIZATION:

RELIGARE SECURITIES LTD.

Registered Office Address:NOIDA: 101, Ocean Plaza, Sector-18 NOIDA India. Phone: +91-120-4679623 Fax: +91-120-

Corporate Office Address: Noida: A-3, 4, 5, Sector-125 Uttar Pradesh - 201 301, India. Phone: +91-0120-339-1000

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For us, each leaf of the clover has a special meaning. It is a symbol of hope, trust, care, good fortune. For the world, it is the symbol of Religare.

The first leaf of the clover represents Hope. The aspirations to succeed. The dream of becoming. Of new possibilities. It is the beginning of every step and the foundation on which a person reaches for the stars.

The second leaf of the clover represents Trust. The ability to place ones own faith in another. To have a relationship as partners in a team. To accomplish a given goal with the balance that brings satisfaction to all, not in the binding, but in the bond that is built.

The third leaf of the clover represents Care. The secret ingredient that is the cement in every relationship. The truth of feeling that underlines sincerity and the triumph of diligence in every aspect. From it springs true warmth of service and the ability to adapt to evolving environments with consideration to all.

The fourth and final leaf of the clover represents Good Fortune. Signifying that rare ability to meld opportunity and planning with circumstance to generate those often looked for remunerative moments of success.

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Hope, Trust. Care. Good Fortune. All elements perfectly combine in the emblematic and rare, four-leaf clover to visually symbolize the values that bind together and form the core of the Religare vision.

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COMPANY STRUCTURE:

Our organization is led by individual who are professional and leaders in every sense of the world. Experts in their respective domain, esteem members of its Board of Directors are:

Name
Mr. Malvinder Mohan Singh Mr. Sunil Godhwani Mr. Shivinder Mohan Singh Mr. Harpal Singh Mr. Deepak Ramchand Sabnani Mr. Padam Bahl Mr. J. W. Balani Ms. Sunita Naidoo

Designation
Non Executive Chairman CEO & Managing Director Non Executive Director Non Executive Director Independent Director Independent Director Independent Director Independent Director

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COMPETITORS OF RELIGARE

ICICI DIRECT

INDIA INFOLOINE SECURITY PVT. LTD.

HDFC SECURITIES

INDIA BULLS

KOTAK SECURITIES

RELIANCE MONEY

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SHARE KHAN SECURITIES

MOTILAL OSWAL

ANAND RATHI SECURITIES

HEM SECURITIES

ANGEL BROKING

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The Religare Edge:


Position is not squared off without margin calls. Cash transfer facility against sale & purchase of shares. Judgmental call tips given even in the processing time. Facility to place after market orders. Efficient and prompt customer service. Efficient research and analytical team. SMS alert and email notification. Short margin calls in the morning. Transfer funds with most banks. We offer discount on brokerage. Attractive margin funding facility. Flat prescribed NSDL charges. ECS of dividend in margin. Excellent market tips. No inactivity fee. IPO investments. 4 times exposure on delivery and intraday. We offer mapping with other demat absolutely free of cost. No minimum balance maintenance on R-ally. Brokerage is negotiable. Company offers demat 3 in 1 online banking with HDFC Bank, ICICI Bank, PNB and AXIS Bank.

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REACH OF RELIGARE Religare Enterprises Ltd is a Ranbaxy promoter group company 6 Regional offices 25 Zonal Offices Presence through more than 1200 locations-Pan India Present across more than 375 Cities & Towns Total group employees 6,500 plus Client Interfaces through the Retail, Wealth and Institutional spectrums Among the largest Retail brokerage branch network, going beyond Tier-I and Tier-II cities in India Overseas presence with a representative office in London, with aggressive plans of straddling other parts of the globe in this financial year

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DIVISION OF RELIGARE Religare Securities Limited (RSL) Registered with SEBI as an approved stockbroker with membership of NSE and BSE Registered for portfolio management Registered as Depository Participant Registered as merchant banker

Religare Finvest Limited(RFL) Registered with RBI as a non-banking finance company and presently engaged in providing credit, distribution of mutual funds and IPO financing. Registered with SEBI as a Depository Participant of Central Depository Services Limited.

Religare Commodities Limited Registered with Forwarding Market Commission as a commodity broker. Member of National Commodities and derivative Exchange Limited, Multi Commodity Exchange Of India Limited and National Multi Commodity Exchange Of India Limited.

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Religare Insurance Broking Services Limited Registered with Insurance Regulatory Development Authority as a composite broker which enables us to distribute products and services of life insurance companies, non life insurance companies and re-insurance businesses.

Religare Venture Capital Private Limited RVCL was recently incorporated to commence the business of private equity and investment manager business and is yet to commence business.

Religare Wealth Management Services Ltd RWMSL is newly incorporated company in which the wealth management advisory business is conducted with a joint venture with Macquarie providing wealth management services to high net worth clients in India.

Religare Finance Ltd RFINL was recently incorporated to start the business of personal loans and other consumer lending businesses.

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Religare Capital Market Ltd RCML was recently incorporated to do the merchant banking business which is presently under RSL, with the view to segregate the merchant banking operations from broking business.

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EQUITY BROKING

Over 200,000 Retail Equity clients, with growth rates of over 200% Market share as on 31st March, 07, was 2.70% Pan India footprint, one of the largest in the category International presence Strong equity research credentials Team of 10 research analysts Over 90 man years of research experience for equity retail

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COMMODITY TRADING

Started operations in 2004 Member of MCX, NCDEX and NMCE Presence through more than 460 locations all over India, in addition to over 40 Mandi (Rural) locations, one of the largest in the category 20,000 plus clients, with growth rates of over 400% As of 31st March 2007, market share, ranged between 3% - 4% Over 40% growth in turnover YOY Strong, credible research and analytics with a dedicated team of 12 professionals

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ONLINE INVESTMENT

Official Launch of E-trading in August 2006 Aggressive growth over the last few months Market share as of 31st March, 07 was around 4.76%* Recently launched a revamped, unique 360 degree customer centric online trading portal www.religareonline.com Launch of Trade Rewards unique reward points system, a first in the category Host of other revolutionary features- 0% brokerage, Interest on cash margin etc.

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PERSONAL CREDIT

Personal Loans - Key Facts Official Launch of Personal Loans in August 2006 Total number clients as on 31st March 2007, were more than 840

Loans against Shares - Key Facts Current Book Size Rs 650 cr. Presence through all Religare locations in India. Total number of clients as of 31st March 2007 was over 1600.

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PERSONAL FINANCIAL SERVICES

This group caters to the financial needs of individuals by advising them on various financial plans Financial planning for retail investment is not widespread in India PFS was started to target the rapidly expanding middle net worth individuals (MNIs) in India Rapid rollout of offerings, such as mutual funds, life and general insurance, fixed income, small savings instruments, capital bonds and equity IPOs Expert group of Religares PFS advisors provide high quality customized solutions Dedicated Team of more than 200 advisors.

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PROVIDING FINACIAL SOLUTIONS TO EVERYONE COMPETITORS RELIGARE SECURITIES LTD operates in a tough and competitive environment, being faced by strategic problems like client turnover, stock market fluctuations, external forces can affect the working of the organization if it doesnt not change with the changing environment. Religare currently faces competition from various other brokers namely:Kotak securities ltd. ICICI securities. Share khan securities Edelweiss securities Motilal Oswal Angel Broking With every commercial bank providing depository services ,Religare makes a nitch for itself by having a competitive advantage in the following area:Personalized services Variable brokerage(Price differentiation) Lowest charges for its quality products Conglomerate-Providing various services under one roof.

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COMPETITIVE ADVANTAGE

Flexi brokerage and exposure. Call centre support provided for trading, back office and IT support. Fully automated processes. Feature rich software. Interest on cash margin deposited with Religare. Target group- Mass market. USP Interest on cash margin deposited. Better quality product at competitive brokerage.

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CHAPTER-IV RESEARCH DESIGN AND METHODOLOGY

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INTRODUCTION TO RESEARCH METHODOLOGY:

Research Methodology comprises defining and redefining the problem, formulating hypothesis or suggesting solution, collecting, organizing and evaluating the data, making deduction and reaching to conclusions. Research Methodology is a way to solve research in study and solving research problems along with logic behind them. Thus while talking about research methodologies we are not only talking of research methods but also consider the logic behind the methods. During my project, I collected data through various sources of primary & secondary data.

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OBJECTIVES OF RESEARCH :
To understand and analyse the expectations of customers of RELIGARE in today market scenario and RELIGAREs efforts to provide the best services at the most competitive prices and provide recommendations of any deviation from that purpose.

Stating the objective of the study. Mapping out a questionnaire to understand the expectations of customers. Identifying problems being faced by customers Analysing RELIGAREs product in meeting these expectations. Finding deviations if any. Providing recommendations and steps to be taken to counters these problems.

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RESEARCH DESIGN:

A research design is the master plan or model for the conduct of formal investigation and survey. It is a specification of methods and procedures for acquiring the information needs for solving the problem. It decides the source of information and methods for gathering the data. A questionnaire and other forms are tested to use the collection of data. A sampling design is to be selected. Good research design ensures that the information obtained is relevant to the research question and that it was collected by objectives. Since research design is simply the framework of plan for a study, it is used as a guide in collecting and analyzing the data. It is a blueprint that is followed in completing the research study. My approach to research is descriptive as well as Explorative. The major objective of the descriptive research is to describe something usually market features or functions. Exploratory research is concerned with the identifying the new insights of investment psychology. Why investor dont want to invest in share market.

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SOURCES OF DATA COLLECTION:

In this research, I have used two types of data. Primary Data. Secondary Data.

Sources of Primary Data includes:-

Telephonic Interview Personal Interview during cold calling Company prospectus & literature Questionnaire

Sources of Secondary Data includes:-

Books related to Financial Management Internet Newspaper Company Database References given by Relationship Manager

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LIMITATIONS OF STUDY:

The study was conducted in NOIDA only, which restricted the scope of the study. The data provided by the investor and the agents cant be assumed as 100% correct. Sample size was just 890 which might give different picture than the reality. Sampling was judgment based & simple random so chance of occurrence of error is more.

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CHAPTER - V

DATA REPRESENTATION, ANALYSIS & INTERPRETATION

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DEMATERIALISATION

Dematerialization is the process of converting physical shares (share certificates) into an electronic form. Shares once converted into dematerialised form are held in a Demat account. An investor intending to dematerialise its securities needs to have an account with a DP. The client has to deface and surrender the certificates registered in its name to the DP. After intimating NSDL electronically, the DP sends the securities to the concerned Issuer. NSDL in turn informs the Issuer electronically, using NSDL Depository system, about the request for dematerialisation. If the Issuer finds the certificates in order, it registers NSDL as the holder of the securities (the investor will be the beneficial owner) and communicates to NSDL the confirmation of request electronically. On receiving such confirmation, NSDL credits the securities in the depository account of the Investor with the DP.

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OPENING A DEMAT ACCOUNT

Getting started

Choose a DP Fill up an account opening form provided by DP, and sign an agreement with DP in a standard
format prescribed by the depository.

DP provides the investor with a copy of the agreement and schedule of charges for his future
reference.

DP opens the account and provides the investor with a unique account number, also known as
Beneficiary Owner Identification Number (BO ID).

Documents to be attached

Passport size photographs Proof of residence (POR) - Any one of Photo Ration Card with DOB / Photo Driving License
with DOB / Passport copy / Electricity bill / Telephone bill

Proof of identity (POI) - Any one of Passport copy / Photo Driving License with DOB /
Voters ID Card / PAN Card / Photo Ration Card with DOB

PAN card

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THINGS

INVESTORS

SHOULD

KNOW

ABOUT

ACCOUNT

OPENING

AND

DEMATERIALISATION It is mandatory for an investor to provide his bank account details at the time of opening a demat account. This is done to safeguard investor's own interests. There are two major reasons for this:

The interest and dividend warrants can't be en-cashed by any unauthorized person, as the bank
account number is mentioned on it.

It is convenient and time saving, as dividends and interests given by the companies can be
directly credited to the investor's bank account (through ECS facility, wherever available).

CHANGE IN BANK ACCOUNT DETAILS It is possible for an investor to make changes to the details of his bank account. The investor must inform any change in his bank account details to his DP. This enables him to receive the cash corporate benefits (such as dividends, interests) directly into his account in time and discourages any unauthorized use by any second party.

CHANGE

IN

THE

ADDRESS

OF

INVESTOR

AS

PROVIDED TO

THE

DP

Any change in your address should be immediately informed to DP. This enables DP to make necessary changes in the records and informing the concerned companies about the same.

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OPENING MULTIPLE ACCOUNTS An investor is allowed to open more than one account with existing DP or with different DPs.

MINIMUM BALANCE OF SECURITIES REQUIRED IN DEMAT ACCOUNT There is no stipulated minimum balance of securities to be kept in a demat account.

MAXIMUM NUMBER OF HOLDERS IN A DEMAT ACCOUNT A maximum of three persons are allowed to open a joint demat account in their names.

ACCOUNT OPENING AND OWNERSHIP PATTERN OF SECURITIES One must make sure to open a demat account in the same ownership pattern in which the physical securities are held. For example: If you have two share certificates, one in your individual name (say 'X') and the other held jointly with some other individual (say 'XY'), then in such a case you will have to open two different accounts in respective ownership patterns (one in your name i.e. 'X' and the other account in the name of 'XY').

HOLDING A JOINT ACCOUNT ON "EITHER OR SURVIVOR" BASIS LIKE A BANK ACCOUNT No investor can open a demat account on "E or S" basis like a bank account.

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ALLOWING SOMEBODY ELSE TO OPERATE YOUR DEMAT ACCOUNT It is possible for an account holder (Beneficiary Owner) to authorize some other person to operate the demat account on his behalf by executing a power of attorney. After submitting the power of attorney to the DP, that person can operate the account on behalf of the beneficiary owner (BO)..

ADDITION/DELETION OF THE NAMES OF THE ACCOUNT HOLDERS AFTER OPENING THE ACCOUNT It is not possible to make changes in the names of the account holders of a BO account. A new account has to be opened in a desired holding/ownership pattern

CLOSING A DEMAT ACCOUNT AND TRANSFER OF SECURITIES TO ANOTHER ACCOUNT WITH SAME OR DIFFERENT DP An investor, if he wants, can also close his demat account with one DP and transfer all the securities to another account with existing or a different DP. As per a SEBI circular issued on November 09, 2005, there are no charges for account closure or transfer of securities by an investor from one DP to another.

FREEZING/LOCKING A DEMAT ACCOUNT The account holder can freeze his demat account for a desired time period. A frozen account prevents securities to be transferred out of (Debit) and transferred into (Credit) the account.

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DEMATERIALISED

SHARES

DO

NOT

HAVE

ANY

DISTINCTIVE

NUMBER

Dematerialised securities are fungible assets. Therefore they are interchangeable and identical.

REMATERIALISATION The process of getting the securities in an electronic form, converted back into the physical form is known as Dematerialization. An investor can rematerialize his shares by filling in a Remat Request Form (RRF).

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BENEFITS OF DEMAT ACCOUNT

Safe and convenient way of holding securities (equity and debt instruments both).

Transactions involving physical securities are costlier than those involving dematerialised
securities (just like the transactions through a bank teller are costlier than ATM transactions). Therefore, charges applicable to an investor are lesser for each transaction.

Securities can be transferred at an instruction immediately.

Increased liquidity, as securities can be sold at any time during the trading hours (between 9:55
AM to 3:30 PM on all working days), and payment can be received in a very short period of time.

No stamp duty charges.

Risks like forgery, thefts, bad delivery, delays in transfer etc, associated with physical certificates,
are eliminated.

Pledging of securities in a short period of time.

Reduced paper work and transaction cost.

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Odd-lot shares can also be traded (can be even 1 share).

Nomination facility available.

Any change in address or bank account details can be electronically intimated to all companies in
which investor holds any securities, without having to inform each of them separately.

Securities are transferred by the DP itself, so no need to correspond with the companies. Shares arising out of bonus, split, consolidation, merger etc. are automatically credited into the
Demat account of the investor.

Shares allotted in public issues are directly credited into Demat account of the applicants in quick
time.

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BANK ACCOUNT VS DEMAT ACCOUNT

S. No. 1.

Basis Of Differentiation Form of Holdings/Deposi ts

Bank Account

Demat Account

Funds

Securities

2. 3.

Used for Facilitates

Safekeeping of money Transfer of money (without actually handling money)

Safekeeping of shares Transfer of shares (without actually handling shares)

4. 5.

Where to open Requirement of PAN Number

A bank of choice Not Mandatory

A DP of choice (can be a bank) Mandatory (effective from April 01, 2006)

6.

Interest accrual on holdings

Interest income is subject to the applicable rate of interest

No interest accruals on securities held in Demat account

7.

Minimum balance requirement

AQB* maintenance is specified for certain bank accounts Available

No such requirement

8.

Either or Survivor facility

Not available

*AQB - Average Quarterly Balance


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SIMILARITES BETWEEN BANK'S A/c AND DEMAT A/c

S. No. 1.

BASIS OF SIMILARITY Security and Convenience

PARTICULARS Both are very safe and convenient means of holding deposits/securities No legal barrier on the number of bank or Demat accounts that can be opened

2.

Number of accounts

3.

Transfer of deposits (funds or securities)

Funds/securities are transferred only at the instruction of the account holder Physical transfer of money/securities is not involved

4.

Physical transfer of money/securities

5.

Nomination Facility

Available

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Comparison Table of Brokerage Charges in India

Here you will find a table comparing intraday brokerage charges and delivery brokerage charges charged by different online brokers in India: Sharekhan, ICICIdirect, Motilal Oswal, Religare, SBICAP Securities, Angel Broking, 5paisa, Indiabulls, UTI Securities, HDFC Securities, Indiainfoline, Reliance Money. I constantly try to update this table and try to keep it up to date, so if you have any more information, please leave a comment. It is also important that you read the remarks below the table to get a complete picture.

Brokerage for Online Broker Delivery

Brokerage for Intraday MMC* trading

SBICAP Securities 0.50% brokerage charges 0.10% NIL

Sharekhan 0.03% - 0.50% brokerage charges 0.03% - 0.10% NIL

Motilal Oswal 0.30% - 0.50% brokerage charges 0.03% - 0.15%

5 paisa 0.25% - 0.85% brokerage charges 0.07%

Angel Broking 0.50% brokerage charges 0.02% - 0.03%

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ICICI direct 0.75% brokerage charges 0.15%

Indiabulls 0.25% - 0.50% brokerage charges 0.05% - 0.10%

HDFC Securities 0.50% brokerage charges 0.15%

UTI Securities 0.80% brokerage charges 0.15%

Religare 0.20% - 0.30% brokerage charges 0.02% - 0.03%

Reliance Money 0.01% brokerage charges 0.01% card system

Geogit 0.30% brokerage charges 0.03%

Indiainfoline 0.50% brokerage charges 0.10% -

MMC=Minimum monthly commitment.

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Brokerage is usually negotiable: Several of you trying to choose an online broker and open an online trading account must have been frustrated trying to search for the exact brokerage charges charged by various online brokers. But the fact is the brokerage charged by the same broker varies and in several cases is negotiable. For example if you go and tell a brokerage house that you are going to deposit 2 lakh rupees and try to convince them you are going to trade heavily, they might consider reducing your brokerage. That is why in the above table you will find only a range for the brokerage charges in some cases. But that should be enough to get an idea. Effective brokerage with taxes is more: In addition to the above brokerage charges you will have to pay STT (Securities Transaction Tax) at the rate or 0.02% of the total transaction amount. You will also be charged 12.5% Service Tax on the brokerage amount (and not on the transaction amount). For example, if your brokerage is 0.50% for delivery and you do a delivery transaction of Rs.100/- then the 0.50 total (brokerage) + 0.02 brokerage (stt) + 0.063 you (service tax) pay = 0.58 is .

Thus your effective brokerage (including all taxes) will be 0.58%. Similarly for brokerage on intraday transactions. One may also like to compare brokerages charged by the online brokers mentioned above for trading in futures and options. I have traded options on SBICAP securities and have been charged Rs.100/flat brokerage fee for every options trade. I will probably find out and also add a comparison table for brokerage charges for trading derivatives (futures and options) later, if i see enough people google searching for the same. For futures, some online brokers charge different brokerage for different legs of the trade, i.e. different for buy and sell trade. Except SBICAP Securities, I do not have any other trading account. So my information is gathered from indirect sources. In case there are any inacurracies please let me know by posting a comment.

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TOP TEN BROKING FIRM IN INDIA

Many times new investor or trader gets confusion for open a D Mat and trading Account in Broking house. Many of Broking House promises to you for better service but clients get problem due to trading session in theirs Broker house firm. Here we are giving list of Indias top 10 Broking House on base of survey of investor and trader of many cities. In their views following Broking Houses gives best and reliable services 1. ICICI direct.com 2. India Infoline 3. Kotak Securities Ltd. 4. Share Khan 5. Indiabulls 6. Motilal Oswal 7. Bajaj Capital 8. SMC 9. Angel Broking 10. Reliance Money

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Contact the brokers in your nouns and find the below details:

1. Account Opening charges 2. Annual Maintenance Charges 3. Buy and Sell commissions 4. Any additional Commissions 5. Online Trading Facility at past its sell-by date times 6. Customer Service Clarity 7. Availability of information (free research reports or timely information on company moves and actions) 8. Number of banks approved to association account to the trading a/c

Visit the maximum brokers and own a database of this. You required to call them to ask these questions to get answer. By calling them you will return with idea in the order of the customer service clarity too...

Once you have collected the background, analyze and compare that. You will get exact details something like to who are the best and with whom you want to start on an account.

This will not one and only help you to identify the show of multiple brokers but in any time you can compare your present trading account's acting out with any other brokerage company because you hold that data too beside you..

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Posts Tagged Brokerage Structure of Religare

An Overview on the Brokerage Charges for Online Stock Trading in India

September 22nd, 2009 admin

On the Financial Awareness Portal, I have posted two articles on the subject of brokerage charges comparison. You may like to refer these articles An Overview on the Brokerage Structure of Reliance Money and Comparison of Brokerage Charges in India

In continuation with the above two articles, this is the third article in which I have tried to provide the details of brokerage structure of five brokerage houses in India. Please check out the following tables to get an idea about the brokerage structure of different brokers in India

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Broker Brokerage Rate Remarks


Delivery Trades Intra-Day

HDFC Securities

0.5% Fixed brokerage rates regardless of the turnover

Brokerage charged on both legs

0.05%

Fixed brokerage rates regardless of the turnover

Brokerage charged on both legs

Minimum brokerage of Rs.25 per trade subject to the SEBI limit of 2.5% of total traded value

Occasionally introduces brokerage rebate schemes but turnover slabs are very high for being eligible for the rebate and as such the schemes are generally not beneficial to ordinary investors

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ICICI Direct

0.25% to 0.75%

Variable brokerage in seven slabs of turnover in the steps of 0.05 each

Charged on both the legs

0.25% to 0.75%

Variable brokerage in seven slabs of turnover

Charged only on the first leg and hence effective rate of 0.375%

Margin trades @0.05%

For most of the retail investors, higher rates will be applicable, as the turnover for lower rates may not be achieved by them

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Kotak Securities

0.18%, 0.23%, 0.27%, 0.36%, 0.45%, 0.55%, 0.59%

Variable brokerage in seven slabs of turnover

Charged on both the legs

0.03%, 0.04%, 0.05%, 0.06%

Variable brokerage in four slabs of turnover

Charged on both the legs

For most of the retail investors, higher rates will be applicable, as the turnover for lower rates may not be achieved by them

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Religare

0.30% to 0.50%

Variable brokerage in three slabs of turnover in the steps of 0.1 each

Charged on both the legs

0.03% to 0.05%

Variable brokerage in three slabs of turnover in the steps of 0.01 each

Charged on both the legs

The details are applicable for Classic Account in which the traders do not have to pay any subscription charges or fixed fees

In other accounts such as Classic Plus Account, Freedom Account, Trump Account, the traders have to pay certain minimum fixed fees every month, six months or year. Traders will be reimbursed brokerage maximum up to the subscription amount or will be provided certain free turnover depending upon the type of account

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Asit C Mehta Investmentz.com

0.55% Fixed brokerage rates regardless of the turnover

Brokerage charged on both legs

For advanced brokerage plans, lower rates are available for higher turnovers

0.05% Fixed brokerage rates regardless of the turnover

Brokerage charged on both legs

For advanced brokerage plans, lower rates are available for higher turnovers

Minimum brokerage of 3 paisa per share

Various advance brokerage plans in which the traders will be reimbursed brokerage maximum up to the amount of advance brokerage paid by them

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Name of the Broker Brokerage Rate Remarks

Futures Options

HDFC Securities

0.05% 0.025% in case of intra-day square off

Fixed brokerage rates regardless of the turnover

Brokerage charged on both legs

1% of the premium amount or Rs.100 per lot, whichever is higher

Fixed brokerage rates regardless of the turnover

Brokerage charged on both legs

Minimum brokerage of Rs.25 per trade subject to the SEBI limit of 2.5% of total traded value

Occasionally introduces brokerage rebate schemes but turnover slabs are very high for being eligible for the rebate and as such the schemes are generally not beneficial to ordinary investors

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ICICI Direct

0.03% to 0.05%

Variable brokerage in four slabs in the steps of 0.005 each

Charged on both the legs

In case of intra-day square off, second leg is charged at Rs.15 per lot

Rs.65 to Rs.95 per lot

Variable brokerage in five slabs of premium turnover in the steps of Rs.5 each

Charged on both the legs

In case of intra-day square off, second leg is charged at Rs.15 per lot

For most of the retail investors, higher rates will be applicable, as the applicable turnover for lower rates may not be achieved by them

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Kotak Securities

0.023%, 0.027%, 0.036%, 0.045%, 0.07% for intra-day square off

0.032%, 0.046%, 0.046%, 0.073%, 0.09% for carry forward positions

Variable brokerage in five slabs of turnover

Charged on both the legs

1.15%, 1.35%, 1.8%, 2.25%, 2.5% for intra-day square off

1.6%, 2.3%,2.3%, 2.5%, 2.5% for carry forward positions

Variable brokerage in five slabs of premium turnover

Minimum per lot Rs.70, Rs.80 and Rs.100 for intra-day square off

Minimum Rs. 100 per lot in case of carry forward

Charged on both the legs

For most of the retail investors, higher rates will be applicable, as the applicable turnover for lower rates may not be achieved by them Depending upon the turnover, the accounts are given different names such as Gateway Account, Privilege Account etc

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Religare

0.03% to 0.05%

Variable brokerage in three slabs of turnover in the steps of 0.01 each

Charged on both the legs

1% of the premium amount

or Rs.75 per lot, whichever is higher

The details are applicable for Classic Account in which the traders do not have to pay any subscription charges or fixed fees

In other accounts such as Classic Plus Account, Freedom Account, Trump Account, the traders have to pay certain minimum fixed fees every month, six months or year. Traders will be reimbursed brokerage maximum up to the subscription amount or will be provided certain free turnover depending upon the type of account

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Asit C Mehta

Investmentz.com 0.05%

Fixed brokerage rates regardless of the turnover

Brokerage charged on both legs

For advanced brokerage plans, lower rates are available for higher turnovers

Rs.100 per lot

For advanced brokerage plans, lower rates are available for higher turnovers

Minimum brokerage of 3 paisa per share

Various advance brokerage plans in which the traders will be reimbursed brokerage maximum up to the amount of advance brokerage paid by them

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CHAPTER-VI
RECOMMENDATIONS AND CONCLUSION

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RECOMMENDATIONS AND CONCLUSION

Though Religare is the best trading broker in the region, its services still require some changes so as to bring customer satisfaction levels up. As already known Religares working is adversely affected by the trends in the market and in these times providing the customer with all the requirements is a very difficult task, but still every personnel at Religare tries to provide the utmost level of satisfaction to its clients.

The changes that would help Religare to grow and sustain in my view are as follows:The price of the product of Religare is the least in the market but to induce prospective customers it needs to tell the investors that even if other brokers have their prices less than Religare ,the other brokers either charge higher brokerage or do not provide pool facility and therefore Religares product has been priced after examining various other pricing options in the interest of the investors.

Religare should provide basic information on its product and the services offered by it. It should make every attempt to make the consumer aware of the various facilities it provides so that the customer can avail them. For example lot of respondents lacked information about the interest rate being charged on margin lending , information regarding T+2 and T+5 and how to access CRN portals and tips on stocks should be provided to customers who are using their own Odin facility etc.

The refreshment issue can be resolved by: By providing refreshments at a later time, in the middle of the trading period.

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The water and other facilities can be moved inside the trading room so that the client doesnt have to wait for someone to bring it to him and get it himself. An alternative source of refreshment supply be sought so as to meet the budget of the enterprise. Misuse and mismanagement should be checked.

Customer complaints regarding Odin diet, confirmation calling, and transactional report for income tax purposes should be provided to the customer as per requirement. Furthermore the transactional report should be bifurcated between long term and short term capital gain for the ease of the clients.

The Odin diet software is the most advanced and user friendly software that Religare provides for its clients. The customer should be made aware of the many function that the Odin can provide to its the clients.

An RM assessment is required after every month so as to assess their performance and ask them about the steps they have taken to retain their original customers and to induce the dormant customers to invest and also to assess if the client is satisfied with the working of their respective RMs.

The enterprise should try to bring in the notion of customer orientation i.e give the customer what they require, only then can it grow and reach the highest level of customer satisfaction.

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Religare is the best service provider for depository and its stock trading services and has over all been the industry leader and carved out a name for itself in the stock broking industry and with its endeavour to retain that position certain changes in its daily working would add to its competitive advantage.

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CHAPTER-VII BIBLIOGRAPHY

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BIBLIOGRAPHY BOOKS & JOURNALS:

RESEARCH METHODOLOGY METOHDS & TECHNIQUES


Author: - C.R.Kothari

MARKETING RESEARCH
Author: - David. J. Luck Ronald S. Rubin

WEBSITES:

http://www.religaresecurities.com http://www.nseindia.com http://www.bseindia.com http://www.google.com http://www.finsights.com http://www.asklaila.com http://www.moneycontrol.com http://www.adityabirlamoney.com http://www.economictimes.com

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CHAPTER VIII

ANNEXURE

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APPENDIX

QUESTIONNARE

1. Name :

2. Mob No :

email:

3. Company :

4. Income

A) Below 2 lakh C) 5lakh to 10 lakh

B) 2lakh to 5 lakh D) More than 10 lakh

5. Do you invest in share market ?

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A) Yes

B) No

[A] If yes

1. How much you invest?

2. Which is your broking firm?

3. In which market you invest more frequently?

A) Equity market C) Mutual funds E) Other : ........................

B) Commodity market D) Gold

4. Are you satisfied with the service? A) Yes Comment : B) No

[B] If no

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1.Do you have Demat Account? A) Yes B) No

2. Any specific reason for not investing in stock market Comment :-

3. Would you like to invest in share market?

1. Have you heard about Religare?

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