A REPORT

ON
A STUDY ON INVESTORS PERCEPTION
TOWARDS ONLINE TRADING
BY
ANKEM LAKSHMI PRADEEP
RELIGARE SECURITIES LTD
MATS School of Business & IT
BANGALORE
2006-2008


1
ACKNOWLEDGEMENT:
The satisfaction that is generated by the successful completion of a task would
remain unfulfilled without mentioning people who have encouraged and guided at
every step toward the completion of the task.
I express my sincere thanks to Prof. NVH Krishnan and Prof.
Udayachandra, Deans of MT! !chool of "usiness and IT, "angalore, for their
valuable suggestions and help to prepare this pro#ect.
I express my deep sense of gratitude to my external guide Mrs. Brna!i "
Mr.Dhi#an$ %Mana&r on!in $radin&'( Mr.)i*ay( #r.Tari+,, Mr.-ard-( "
Mr. Manish for offering me suggestions and help in successfully completing my
pro#ect report. . $e has been a constant source of inspiration and motivation.
I wish to take this opportunity to express my deep sense of gratitude to Dr
. K Pani&rahi ( MT! !chool of "usiness, "angalore, for his invaluable
guidance in this endeavor. I sincerely thank him for his suggestions and help to
prepare this report
I would like to express my sincere thank all the department heads, in%charge and
the administrative staff of the organi&ations for giving me relevant information and
support re'uired to complete my study.
I humbly acknowledge there is always some scope for further improvement
and to that end sincerely I invite valuable suggestions of your by which my future
assignments, pro#ects could be benefited



(

)
/NT.ODUCT/ON
*onstructive uses of new technologies have always contributed positively
towards improving human life standards and the economy of a country .!uch as
online trading, in e'uity markets it increased trade volumes and number of
investors trading in stock markets. +nline trading was started in India in the year
1,,-,where a new system is formed which allows the investor to trade through an
internet site where banks and demat accounts are electronically integrated .!uch
services are provided by many financial institutions like I*I*I, .eligare, $D/*,
India bulls and so on.
Da$a Co!!c$ion M$hods:
01rimary Data 2 Interview will be collected with trading advisors, investors and
company professionals and 'uestionnaires will be collected from targeted
customers.
"0!econdary Data
*ompany records and reports
Maga&ines, #ournals, pamphlets, advertisements.
!tandard reference textbooks
3ebsites like nseindia.com and money control.com
The purpose of using the secondary data is to increase the accuracy of analysis.
0.1 PLACE O2 THE 3TUD4
The study was conducted in "angalore.
Li#i$a$ions $o $h s$,dy
4etting appropriate response from the respondents
4etting appointment from the investors.
The study is limited to the curriculum.
5
Li$ra$,r .)i5
6Marketing management 1(e%nalysing consumer markets7 by 1hilip
8otler states that perceptions are more important than reality and it affects the
consumers actual behaviour.1erception is defined as the process by which an
individual selects,organi&es,and interprets information inputs to create a
meaningful picture of the world.
6On!in s$oc7 $radin& in /ndia: An #-irica! in)s$i&a$ion8
In (99:,;idhi walia and .avinder kumar<s research report examined the
investor<s preference for traditional trading and online trading, investor<s
perception on online trading and comparing current usage of online trading and
offline trading. This study reveals that out of every 199 investors only (= trade
online, which points out a 'uestion as why investors were not able to reali&e the
importance of technology in stock trading.
+nline trading has gained momentum from #ust 9.-> of total traded
volumes - ?ears back, which now accounts for -> of the total trading volume of
approximately .s 15999 *r on ;!@. +ver the past ( years, the value of all trades
executed through internet on ;!@ has grown from less than .s 199 cr in Aune
(99) to over .s :99 *r in Aune (99-.
The ma#or findings of the study are that Indian investors are more
conservative, they do not change easily and indian traditional traders still choose
brokers for trading ,whereas net traders are more comfortable with online trading
for its transparency and complete control of the terminal.
Undrs$andin& and #ana&in& c,s$o#rs -rc-$ions
-
In !eptember (99B, 6@ffective executive7 special edition speaks about
understanding customers perception to get a distinctive competitive advantage in
the market.

Internet trading in India is discussed in chapter 11,Dalal street #ournal<s stock
market book, which highlights the introduction to online trading, advantages and
disadvantages of it and value added services provided by online trading service
providers.
Tradin&:
Trading is defined as buying and selling shares in stock exchange. There are two
types of trading i.e. +nline tradingCvia internet0 and +ffline tradingCvia broker or
call0.
On!in Tradin&:
+nline trading refers to trading via the internet .The onset of online trading
changed the traditional value proposition of trading ,allowing online brokers to
supply investors with rich ,interactive information in real time including market
updates ,investment research and robust analytics. The result is an integrated
trading experience that combines execution with interactive analysis shown by the
growth of the online customer community from a mere ()999 average trades on
;!@ per day in a year (999 to over -(999 average trades in (99(.

Ad)an$a&s of On!in $radin& :
1 Time:
B
*ustomers can trade online with a real time basis and buying and selling of
shares happens with a press of a button.
2 Flexibility:
*ustomers can modify the placing orders according to the market
movements.
3 Standardized ProcedureD
3hen the order is accepted by the exchange ,it will give pay%in and pay%out
dates and customer can easily expect the cash or shares to be credited to his
account.
4 One stop shop:
"ank statements and transaction statements can be viewed at the click of a
button.
5 n!ormed "esearch:
!ervice providers carry stock analysis like intraday and @+DC@nd of day0
technical charting which helps the customer to make right choices
# Flexibility o! timin$
*ustomers can place orders before start of a trading session.
Disad)an$a&s of On!in Tradin&:
1 %imited &no'led$e:
In online terminal, investor can<t get customi&ed expert advice, whereas
in offline the broker gives suggestions according to investors strategy Ci.e. short
term or long%term0
( "rokerage is high compared to offline.
:
) 1rivacy is less due to hacking scandals
5 Transactional errors due to technical problems
Va!, addd sr)ics
1 Tradin& in shars
1 Spot Tradin$: 3hen an investor is looking at an immediate li'uidity
option . E*ash on spot<, money is credited to his bank aFc the same evening
and not on the exchange pay%out date. This money can then be withdrawn
from any of bank TMs.
2 (TSTD "uy today and sell tomorrow is a facility that allows investor to
sell shares even one day after the buy order date ,without investor having to
wait for the receipt of shares into his demat aFc.
3 Tradin$ on )S*+(S*D Through some of the service providers, we can
trade on both ;!@ and "!@
4 ,ar$in Tradin$ DInvestor can trade an intra%settlement trading up to
5 times of the investor<s available funds ,wherein investor take long buyFshort
sell positions in stocks with the intention of s'uaring off the position within
the same settlement cycle.

( /n)s$in& in M,$,a! f,ndsD !ome of the ma#or service providers bring the same
convenience while investing in Mutual /unds as well as $assle free and paperless
investing.
+nce the investor place a re'uest for investing in a particular fund, there are no
manual process involved .Investor<s funds are automatically debited or credited
while simultaneously crediting or debiting investors unit holdings.
) Dri)a$i)s:
=
2,$,rs: Through online trading service providers, one can trade in index and
stock futures on the ;!@. In futures trading, investor takes buyFsell positions in
index or stocks contracts having a long contract period of up to ) months.
O-$ionsD Through online trading service providers ,one can trade in index and
stock options.
5 /PO9s On!in: Investors could also invest in Initial 1ublic +ffersCI1+<s0 online
without going through the hassles of filling any application formFpaperwork. They
can get in%depth analysis of new I1+<s issues CInitial 1ublic +fferings0 that are
likely to hit the market and analysis on these. I1+ calendar ,recent I1+ listings,
prospectusFoffer documents ,and I1+ analysis are also provided.
- O$hr sr)ics: Displaying indices of ma#or world markets, nifty futures, daily
share prices of all scrip<s ,monthly and yearly highsFlows of share prices are listed,
technical charts of intraday and @+DC@nd of Day0 are also provided. *ompany
profiles, breaking news and snapshots of latest developments in the market are
displayed in the website.
The ma#or internet service trading providers in the Indian markets are .eligare,
$D/*, I*I*Idirect, !hare khan and India bulls. The ma#or comparative analysis
parameters taken by customers are aFc opening charges, brokerage and annual
charges.
3co- for on!in Tradin&:
61rofiling internet shoppersD study of expected adoption of online shopping
in India7, a research paper submitted by Darshan 1arikh suggests that the
continuous growth in the number of internet users and broadband subscribers, and
,
the rapid pace of technological improvements and innovations also held the
promise of greater acceptance of the digital medium by consumers.
Gnderstanding online Investors perception is a ma#or marketing challenge in
financial service sector because lack of awareness in the minds of customers about
the emerging financial service products, fre'uent scams , privacy and non%
compliance of rules etc. in the financial service industry is resulting in the loss of
confidence of the investors. Interference of regulatory bodies like !@"I and often
changes in the guidelines and policies of these regulatory bodies. *onfused
government policies with regarding to tax and legal issues also affect marketing of
the financial products.
C.M%C,s$o#r .!a$ionshi- Mana&#n$':a di&i$a! -rs-c$i):
6*.MC*ustomer .elationship Management0%a digital perspective7 by Dr ! H
4ole discusses about e%*.M, critical aspects of *.M and advantages of applying
*.M digitally. *.M provides means and methods to enhance the experience of
the individual customers so that they will remain loyal and provides technical and
functional tools for customer identification , capturing and retention.
e%*.M helps internet trading service providers in segmenting, targeting and
positioning the market. It also helps in identifying potential traders and provide
more value added services like flexible brokerage charges and giving more
exposure in the investments.
Th Charac$ris$ics of on!in /n)s$ors:
This article is taken in 6Aournal of "ehavioral science7 submitted by 8onnari
Gchida. It explores the characteristics of Aapanese online investors. Main findings
of the research are young men are more likely to engage in online trading
,employed investors trade online more fre'uently ,implying that proximity to the
information network of the workplace investor decisions to trade online. Aapanese
online investors prefer capital gains, do not prefer low%volatility stocks, refer to
19
chart data when making investing decisions more fre'uently , and tend to choose
stocks to buy and sell on their own.
OB;ECT/VE3 O2 THE 3TUD4
The main ob#ectives of the study areD
To study investor<s perception on online trading like safety regarding online
frauds, transaction errors and speedFconnectivity problems.
To identify innovative value added services
To identify !T1C!egmentation, Targeting and 1ositioning0 strategy for
online trading
To study a comparative analysis on the services provided by ma#or online
trading service providers in the market.
To identify customer rankings on user friendliness of online terminal
To help the company in building a strategy for their online services.
To study *.M aspects in online trading services.


11


1(
2/NANC/AL 3E.V/CE3 3ECTO.

/NT.ODUCT/ON:
/inancial services are vital tools of machinery for economy and they lubricate
the wheels of economic development. In advanced nations, giant economies like
G!,G8,Aapan,etc..,.ma#or portion of the national income is accounted from the
services sector and minimum from the product sector.
Indian economy has undergone a sea change in its structure, policy and
regulation, due to liberali&ation and globali&ation, since 1,,1.Markets for services
are no exception to this. The contribution of service sector Cincluding financial
services sector0 for 4D1 has increased to -1> in (99),from )B > in 1,=9.The
financial service sector include factoring, merchant banking, venture capital ,etc.
/inancial services like banking, merchant banking, factoring, Insurance, Henture
capital ,act as vital machinery of an economy. These financial services that
facilitate, financial transactions of individuals and institutional services resulting
in their resources allocation activities through time. The sector that deals with such
financial services is known as 6financial services sector7. +nce the economy
crosses the subsistence level, financial services become more prominent and
important to that economy. /inancial services in current days are emerging as a
crucial industry world over and is termed as a sun rise industry. The services
1)
offered by this sector not only raise the re'uired funds, but also lead to the
efficient management of funds.Today,the financial service products, as turned out
to by financial services industry are innovative and paving ways for vivid
opportunities for further economic development.

E#r&nc of financia! sr)ics ind,s$ry in /ndia
!ervices sector industry has started gaining large scale momentum since the
process of liberali&ation in 1,,1.1rior to its contribution to 4D1 was around 59
> ,but since 1,,( it has been grown rapidly and reached a value of -1 >
4D1.*ontribution of service sector to 4;1 in advanced counties like G! is as
high as :->.In India many innovative financial products and services like credit
cards,TMs,consumer finance, venture financing have been emerging since 1,=9s
nd these financial services have become an integral component of Indian
financial system. This integration is largely attributed to the liberali&ation of
economic policies and deregulation that led to economic changes ,development
and contemporary evolution of capital market and financial dis%intermediation.
The far%reaching change in the Indian economy since liberali&ation in the
15
early 1,,9s have had a deep impact on the Indian financial sector. The
financial sector has gone through a complex and sometimes painful process of
restructuring, capitali&ing on new opportunities as well as responding to new
*hallenges. During the last decade, there has been a broadening and deepening of
financial markets. !everal new instruments and products have been introduced.
@xisting sectors have been opened to new private players. This has given a strong
impetus to the development and moderni&ation of the financial sector. ;ew players
have adopted international best practices and modern technology to offer a more
sophisticated range of financial services to corporate and retail customers. This
process has clearly improved the range of financial services and service providers
available to Indian customers.
The entry of new players has led to even existing players upgrading their product
offerings and distribution channels. This continued to be witnessed in (99(%9)
across key sectors like commercial banking and insurance, where private players
achieved significant success.
These changes have taken place against a wider systemic backdrop of easing
of controls on interest rates and their realignment with market rates, gradual
reduction in resource pre%emption by the government, relaxation of
stipulations on concessional lending and removal of access to concessional
resources for financial institutions. +ver the past few years, the sector has also
witnessed substantial progress in regulation and supervision. /inancial
intermediaries have gradually moved to internationally acceptable norms for
income recognition, asset classification, and provisioning and capital ade'uacy.
This process continued in (99(%9), with ."I announcing guidelines for
risk%based supervision and consolidated supervision. 3hile maintaining its
1-
soft interest rate stance, ."I cautioned banks against taking large interest rate
risks, and advocated a move towards a floating rate interest rate structure. The past
decade was also an eventful one for the Indian capital markets.
.eforms, particularly the establishment and empowerment of securities and
@xchange "oard of India C!@"I0, market%determined prices and allocation of
resources, screen%based nation%wide trading,dematerialisation and electronic
transfer of securities, rolling settlement and derivatives trading have greatly
improved both the regulatory framework and efficiency of trading and
settlement.
+n account of the subdued global economic conditions and the impact on the
Indian economy of the drought conditions prevailing in the country, (99(%9) was a
subdued year for e'uity markets. Despite this, the ;ational !tock @xchange C;!@0
and the "ombay !tock @xchange C"!@0 ranked
third and sixth respectively among all exchanges in the world with respect to the
number of transactions. The year also witnessed the grant of approval for setting
up of a multicommodity exchange for trading of various commodities.
The G!I (= billion Indian financial sector has grown at around 1- per cent and
has displayed stability for the last several years, even when other markets in the
sian region were facing a crisis. This stability was ensured through the resilience
that has been built into the system over time. The financial sector has kept pace
with the growing needs of corporate and other borrowers. "anks, capital market
participants and insurers have developed a wide range of products and services to
suit varied customer re'uirements. The .eserve "ank of India C."I0 has
successfully introduced a regime where interest rates are more in line with market
forces.
1B
/inancial institutions have combated the reduction in interest rates and pressure on
their margins by constantly innovating and targeting attractive consumer segments.
"anks and trade financiers have also played an important role in promoting
foreign trade of the country. $ere we will study the three industries with respect
to India.
/N3U.ANCE AND /ND/A
The insurance sector in India has come a full circle from being an open
competitive market to nationali&ation and back to a liberali&ed market again.
Tracing the developments in the Indian insurance sector reveals the )B9 degree
turn witnessed over a period of almost two centuries.
A <rif his$ory of $h /ns,ranc sc$or
The business of life insurance in India in its existing form started in India in the
year 1=1= with the establishment of the +riental Jife Insurance *ompany in
*alcutta. !ome of the important milestones in the life insurance business in India
areD
0=0>D The Indian Jife ssurance *ompanies ct enacted as the first statute to
regulate the life insurance business.
0=>?D The Indian Insurance *ompanies ct enacted to enable the government to
collect statistical information about both life and non%life insurance businesses.
0=@?D @arlier legislation consolidated and amended to by the Insurance ct with
the ob#ective of protecting the interests of the insuring public.
0=1AD (5- Indian and foreign insurers and provident societies taken over by the
central government and nationali&ed. JI* formed by an ct of 1arliament, vi&.
JI* ct, 1,-B, with a capital contribution of .s. - crore from the 4overnment of
India. The 4eneral insurance business in India, on the other hand, can trace its
roots to the Triton Insurance *ompany Jtd., the first general insurance company
established in the year 1=-9 in *alcutta by the "ritish.
!ome of the important milestones in the general insurance business in India areD
0=BCD The Indian Mercantile Insurance Jtd. set up, the first company to transact all
classes of general insurance business.
0=1CD 4eneral Insurance *ouncil, a wing of the Insurance ssociation of India,
frames a code of conduct for ensuring fair conduct and sound business practices.
0=A?D The Insurance ct amended to regulate investments and set minimum
solvency margins and the Tariff dvisory *ommittee set up.
1:
0=C>D The 4eneral Insurance "usiness C;ationali&ation0 ct, 1,:( nationali&ed
the general insurance business in India with effect from 1st Aanuary 1,:).
107 insurers amalgamated and grouped into four companies viz.
the National
Insurance Company Ltd., the New India ssurance Company
Ltd., the
!riental Insurance Company Ltd. and the "nited India Insurance
Company
Ltd. #IC incorporated as a company.
Ky P!ayrs in ins,ranc 3c$or of /ndia
.eliance 4eneral Insurance *ompany Jtd
Jife Insurance *orporation of India
$D/* Insurance
8otak Mahindra
I*I*I 1rudential
!"I Jife Insurance *ompany Jtd
+riental Insurance *ompany Jtd
;ational Insurance *ompany Jtd
"a#a# llian& Jife Insurance *ompany Jtd
MUTUAL 2UND3 AND /ND/A
Jet us start the discussion of the performance of mutual funds in India from the
day the concept of mutual fund took birth in India. The year was 1,B). Gnit Trust
of India invited investors or rather to those who believed in savings, to park their
money in GTI Mutual /und.
/or )9 years it goaled without a single second player. Though the 1,== year saw
some new mutual fund companies, but GTI remained in a monopoly position.
The performance of mutual funds in India in the initial phase was not even closer
to satisfactory level. 1eople rarely understood, and of course investing was out of
'uestion. "ut yes, some (5 million shareholders was accustomed with guaranteed
high returns by the beginning of liberali&ation of the industry in 1,,(. This good
record of GTI became marketing tool for new entrants. The expectations of
1=
investors touched the sky in profitability factor. $owever, people were miles away
from the preparedness of risks factor after the liberali&ation.
The ssets Gnder Management of GTI was .s. B:bn. by the end of 1,=:. Jet me
concentrate about the performance of mutual funds in India through figures. /rom
.s. B:bn. the ssets Gnder Management rose to .s. 5:9 bn. in March 1,,) and
the figure had a three times higher performance by pril (995. It rose as high as
.s.1,-59bn.
The net asset value C;H0 of mutual funds in India declined when stock prices
started falling in the year 1,,(. Those days, the market regulations did not allow
portfolio shifts into alternative investments. There were rather no choice apart
from holding the cash or to further continue investing in shares. +ne more thing to
be noted, since only closed%end funds were floated in the market, the investors
disinvested by selling at a loss in the secondary market.
The performance of mutual funds in India suffered 'ualitatively. The 1,,( stock
market scandal, the losses by disinvestments and of course the lack of transparent
rules in the whereabouts rocked confidence among the investors. 1artly owing to a
relatively weak stock market performance, mutual funds have not yet recovered,
with funds trading at an average discount of 19(9 percent of their net asset value.
The supervisory authority adopted a set of measures to create a transparent and
competitive environment in mutual funds. !ome of them were like relaxing
investment restrictions into the market, introduction of open%ended funds, and
paving the gateway for mutual funds to launch pension schemes.
The measure was taken to make mutual funds the key instrument for long%term
saving. The more the variety offered, the 'uantitative will be investors.
t last to mention, as long as mutual fund companies are performing with lower
risks and higher profitability within a short span of time, more and more people
will be inclined to invest until and unless they are fully educated with the dos and
don<ts of mutual funds.
Ky P!ayrs in M,$,a! 2,nds 3c$or in /ndia
"; M.+ Mutual /und.
"irla !un Jife Mutual /und.
"ank of "aroda Mutual /und C"+" Mutual /und0. .
I;4 Hysya Mutual /und.
1rudential I*I*I Mutual /und.
1,
!ahara Mutual /und.
!tate "ank of India Mutual /und.
Tata Mutual /und.
DEMAT ACCOUNT AND /ND/A
There are 'uite a few institutions that are directly andFor indirectly connected with
demateriali&ed operations of securities. Gnderstanding the inter%linkages and
functional responsibilities of these institutions will help us to have correct and
holistic perspective about functioning of demateriali&ation. The institutions
connected with demat operations includeK a0 Depositories, b0 !tock @xchanges
C!@s0, c0 *learing *orporations C**s0 F *learing $ouses C*$s0, d0 Depository
1articipants CD1s0, e0 .egistrars and Transfer gents C.Ts0. "oth the
depositories ;!DJ and *D!J are primarily promoted by the two leading stock
exchanges vi&., ;ational !tock @xchange of India Jtd C;!@0 and The !tock
@xchange, Mumbai C"!@0 respectively. "esides, there are many other institutional
promoters in both the depositories. "oth are registered as organi&ations%for%profit
and professionally managed. Inter%connectivity between these two depositories has
been established, thus D1s and investors can transfer smoothly their shares from
one account to another between the depositories. Most of the stock exchanges are
connected with the depositories to provide trading in demateriali&ation segment.
@ventually, all the exchanges will be connected to either of or both the
depositories. .esultantly, functioning of exchanges altered with the
commencement of depositoriesK shorter trade cycles, negligible bad%deliveries,
immediate transfer of beneficial ownership and lower transaction costs. n in%
depth study on transaction cost for e'uity shares in India by .a#u C(9990 revealed
substantial decrease in transaction costs and observed that the demateriali&ation as
one of the important factor for this trend.
/unctioning of clearing corporations F clearing houses materially changed after the
entry of depositoriesK reduced manpower re'uirements and faster clearing
operations. It also helped them to diversify into related businesses such as on%line
stock lending. Depository participants are the new commercial intermediaries that
sprang up. They interpose between investor and depository. It can be stated that
they are the back%bone for the success of demateriali&ation. .Ts facilitate
dematerialisation and rematerialisation of shares.
Ma*or P!ayrs /n On!in Tradin& Bro7ra& Ho,ss in /ndia
I*I*I !ecurities Jtd.
8otak !ecurities Jtd.
India bulls /inancial !ervices Jimited
(9
India Infoline
IJL/! investmart Jimited
!!8I Jtd.
Motilal +swal !ecurities
.eligare !ecurities Jtd.
4eo#it !ecurities
$D/* !ecurities
On!in Tradin&: /ndian scnario

In the Indian context ,online trading can be rightly called as a recent
phenomenon ,which took root with the change of century i.e. pril (999,and even
till day online trading is not much popular among investors for which a list of
factors can be blamed. This fact is more clear from the information available that
where number of stocks exchanges in India has grown from : exchanges in 1,5B
to total () exchanges till (99-,only ( stock exchanges are providing online share
trading .Indian stock exchanges have started adopting technology because it
provides the necessary impetus for the organi&ation to retain its competitive edge
and ensure timeliness and satisfaction in customer service.
+nline trading has gained momentum from #ust 9.-> of total traded volumes -
?rs back, which now account for -> of total trading volume of approximately .s
15999 *r. +n +nce%+ver the past two years ,the value of all trades executed
through internet on ;!@ has grown from less than .s 199 *r in Aune (99) to over
.s :99 *r in Aune (99-.+nline trading is growing by 1-9 > per annum.;ow ;!@
has 19= registered brokers and 1.9-) million internet trading subscribers.
(1
$owever mainly - companies control ,9 > of the market in Internet
trading.I*I*Idirect.com has around -9 > market share ,whereas India "ulls hold
(B> share ,other dominant players are 8otak securities and !hare 8han .I*I*I has
been able to gain its dominant presence in Internet trading because they have
strong connectivity of stock trading,demat account, bank account ,etc.I*I*IDirect
has recorded B,:-,999 registered customers and has become 19
th
largest online
broker in G! whereas share khan and -paisa are loosing their way.




((
-ompany pro!ile
.!i&ar 3c,ri$is L$d.
.eligare !ecurities Jtd is a .anbaxy promoter group company, is one of India<s
largest and fastest growing integrated financial services institutions. The company
offers a large and diverse bou'uet of services ranging from e'uities, commodities,
insurance broking, to wealth advisory, portfolio management services, personal
finance services, Investment banking and institutional broking services. The
services are broadly clubbed across three key business verticals% .etail, 3ealth
management and the Institutional spectrum. .eligare @nterprises Jimited is the
holding company for all its businesses, structured and being operated through
various subsidiaries.
.eligare<s retail network spreads across the length and breadth of the country with
its presence through more than ,99 locations across more than )99 cities and
towns. $aving spread itself fairly well across the country and with the promise of
()
not resting on its laurels, it has also aggressively started eyeing global
geographies.
Vision
To build .eligare as a globally trusted brand in the financial services domain and
present it as the EInvestment 4ateway of India<
Mission
1roviding financial care driven by the core values of diligence and transparency.
Brand Essnc
.eligare is driven by ethical and dynamic processes for wealth creation
KE4 PE.3ON3
Mr. 3,ni! Godh5ani % *@+ L Managing Director, .eligare @nterprises Jimited
Mr. 3hachindra Na$h % 4roup *hief +perating +fficer, .eligare @nterprises
Jimited
Mr. Ani! 3aDna % 4roup *hief /inancial +fficer, .eligare @nterprises Jimited
!@.HI*@! .@;D@.@D by .eligare !ecurities JtdD
(5
EEU/T4 AND DE./VAT/VE T.AD/NG:
The term e'uity derivative describes a class of financial instruments whose value
is at least partly derived from one or more underlying e'uity securities. Market
participants trade e'uity derivatives in order to transfer or transform certain risks
associated the underlying. +ptions are by far the most common e'uity derivative,
however there are many other types of e'uity derivatives that are actively traded.
/N3T/TUT/ONAL D/3T./BUTON 3E.V/CE
The *lient !ervice Manager will be responsible for all aspects of client reporting
for institutional investment clients and industry organi&ations. The candidate will
also be responsible for client servicing which includes working with clients,
internal groups and G8 based portfolio management.
DEPO3/TO.4 3E.V/CE3
Depository is an organisation which holds your securities in electronic Calso
known as
Ebook entry<0 form, in the same manner as a bank holds your money. /urther, a
Institutional Distribution
Services
Depository
Services
Commodities
Broking
Services
International
Equity &
Commodities
Wealth
Management
Services
Investment Banking
Internet
Trading
Private Equity
Insurance Broking
Lending Services
Equity & Derivative
Trading
(-
depository also transfers your securities without actually handling securities, in the
same
day as a bank transfers funds without actually handling cash.

COMMOD/T/E3 B.OK/NG 3E.V/CE3
*ommodity "roking !ervices specialises in offering online accounts to clients
wishing to deal in the /oreign @xchange, "ullion, /utures, *ommodities, */Ds
and InternationalFDomestic @'uities markets all from the one account.
*ommodity "roking !ervices specialise in offering commodity price risk
management to agricultural producers and end users.
WEALTH MANAGEMENT 3E.V/CE3
3ealth management services are provided by banks, professional trust companies,
and brokerages. /or those with si&eable assets Musually over I-99,999N,
professional wealth management can help you plan your estate or invest your
assets based on personal criteria and financial goals.
/NVE3TMENT BANK/NG
Investment "anking is facing a strangle of challenges today 2 lower margins,
compliance issues, workflow disconnects and data redundancies.
Investment banks need a partner who can work in market%time to address all these
business challenges.
/N3U.ANCE B.OK/NG
The term Insurance "roker became a regulated term under the Insurance "rokers
C.egistration0 ct 1,::which was designed to thwart the bogus practices of firms
holding themselves as brokers but in fact acting as representative of one or more
favoured insurance companies.
Insurance brokerage is largely associated with general insurance Ccar, house etc.0
rather than life insurance, although some brokers continued to provide investment
and life insurance brokerage until the onset of more onerous /inancial !ervices
uthority regulation in (991.
Insurance broking is carried out today by many types of organi&ations including
traditional brokerages, Independent /inancial dvisers CI/s0 and telephone or
web%based firms.
(B
3WOT ANAL43/3 O2 .EL/GA.E
3T.ENGTH3
It is the .anbaxy promoter group company.
It has a good research team.
;o nnual maintenance charges for their online broking services.
WEAKNE33
It has changed its name from /+.TI! to .@JI4.@ where the maximum

*ustomers don<t know about this.
OPPO.TUN/T4
/inancial services sector in India is growing by leaps and bounds.
In the up coming days .@JI4.@ is coming up with their own mutual
fund and "anking.
TH.EAT3
*ut%throat competition from corporate big houses like .eliance and I*I*I
s they have changed the name of their company the customer still did not
know about .@JI4.@.
Prod,c$s offrd <y .!i&ar:
(:
.eligare products are well known for +nline Trading ,+ffline Trading,
1ortfolio Management !ervices , *ommodity Trading and Intuitional "roking
services.
0.On!in Tradin& in E+,i$y Mar7$s:
+nline Trading products in @'uity markets are named as .*@, which is
divided into three segments ,.*@%basic, lite and 1ro.
2a$,rs of .ACE -rod,c$s:
/ixed "rokerage and @xposure
*all center support provided for trading, back%office and IT support
Minimum branch level support
/ully automated processes
/eature%rich software
Interest on cash margin deposited with .eligare
Target 4roup 2 Mass Market
G!1
o Interest on cash margin deposited with .eligare
o "etter 'uality product at competitive brokerage
+ffline Trading 1roducts in @'uity markets are named as .%JJ?,which is
divided into
.:ALL4 -lassic
Trade over the phone
.:ALL4 %ite
browser based internet trading facility
.:ALL4 Pro
n application based diet odinCsoftware0 over Internet
2a$,rs of .:ALL4 -rod,c$s:
/lexible brokerage L exposure
;o call center support
/ull branch level support
$igh level of manual intervention for flexible processes
"asic software
;o interest on cash margin
Target 4roup 2 $igh Holume Traders.
(=
>. DEPO3/TO./E3:
.eligare is among the few ma#or Depository 1articipants holding securities
worth more than .s.B999 crores under its management. .!J provides
depository services to investors as a Depository 1articipant with ;!DJ and
*D!J.
The Depository system in India links issuers, depository participants,
depositories ;ational !ecurities Depository Jimited C;!DJ0 and *entral
Depository !ervices CIndia0 Jimited C*D!J0 and clearing house F clearing
corporation of stock exchanges. These facilitate holding of securities in
demateriali&ed form and securities transactions are processed by means of
account transfers.
). PO.T2OL/O MANAGEMENT:
3CHEME3:
Pan$hr
The 1anther portfolio aims to achieve higher returns by taking aggressive
positions across sectors and market capitali&ations. It is suitable for the 6$igh risk
high return7 investor with a strategy to invest across sectors and take advantage of
various market conditions.
Tor$ois
The Tortoise portfolio aims to achieve growth in the portfolio value over a period
of time by way of careful and #udicious investment in fundamentally sound
companies having good prospects. The scheme is suitable for the 6Medium .isk
Medium .eturn7 investor with a strategy to invest in companies which have
consistency in earnings, growth and financial performances.
E!-han$
The @lephant portfolio aims to generate steady returns over a longer period by
investing in securities selected only from "!@ 199 and ;!@ 199 index. This plan
(,
is suitable for the 6Jow .isk Jow .eturn7 investor with a strategy to invest in
blue chip companies, as these companies have steady performance.
Ca$r-i!!ar
The *aterpillar portfolio aims to achieve capital appreciation over a long period of
time by investing in a diversified portfolio. The investment strategy would be to
invest in scrips which are poised to get a re%rating either because of change in
business, potential fancy for a particular sector in the coming yearsFmonths,
business diversification leading to a better operating performance, stocks in their
early stages of an upturn or for those which are in sectors currently ignored by the
market.
5. /N3T/TUT/ONAL B.OK/NG 3E.V/CE3
The mission of this division is to institutionali&e and implement a process driven
approach to cater to the needs of leading corporate houses and institutions.
The division would like to be seen as a one stop investment gateway and
knowledge repository for its clients servicing their uni'ue and sophisticated needs.
The division is structured as a separate !"G and is housed out of Mumbai,
manned by a small yet fleet footed and extremely skilled group of top notch
professionals drawn from the best in the industry.

)9