A

PROJECT REPORT ON
COMPETITIVE ANALYSIS OF
STOCK BROKING INDUSTRY
FOR

RELIANCE MONEY LIMITED

Submitted to
SIGMA INSTITUTE OF MANAGEMENT STUDIES,
BAKROL, VADODARA

Affiliated to
GUJARAT UNIVERSITY, AHMEDABAD

Prepared by
Maulik H Patel
ID NO: 35
M.B.A.: First Year

Under the Guidance of

Faculty Guide Company Guide

Mr. Jayprakash Lamoria Mr. Hardik Mathur
Center Manager

1
 PREFACE

“Practices make man perfect” each and every activity is started for the accomplishment
of some pre-determined goals and for this purpose management is essential, and being the
management students, we have to undergo Summer Training.

The objective of Summer Training at MBA level is to develop among the students a
feeling about industrial environment and business. The theoretical knowledge proves
useful only when we apply to prove the same in our practical life. Summer Training is
required to create awareness and to give prospective about the organization and
functioning of area of management like personnel, marketing, material, financing and
accounts in an industrial unit.

Summer Training plays a vital role because the class room discussion are not enough to
provide the essential and required knowledge of the business, during the Summer
Training students get opportunity to observe how manager handles different managerial
responsibilities and problems.

This report is based on the practicability of various concept, ideas, and procedures of
management field. It contains the general information regarding Reliance Money
Limited.

The management of “RELIANCE MONEY LIMITED” allowed me for the Summer

Training in their organization for 8 weeks, starting from 20th May 2008 to 12th July
2008. I have prepared a details report regarding different areas of management and
various operations of the unit. I have tried my level best to prepare this report and I hope
it will satisfy you.

2
 ACKNOWLEDGEMENT

Summer Training is very important factor at the level of M.B.A. therefore Summer
Training is a pleasant experience for me. My report is the outcome of my Summer
Training of 8 weeks at “RELIANCE MONEY LIMITED”.

We all need a great deal of guidance to prepare the report and I am lucky that each and
every type of guidelines is provided by the staff members and officers of different
department of the company.

On successful completion of my training, I would like to thanks some emigrant

personalities who are directly or indirectly involved with me, right from the beginning of
my report.

I am thankful to Mr. HARDIK MATHUR (Center Manager) for granting me

permission to under go training in this unit and for his personal attention in guiding me &
his generous and invaluable guidance in the preparation of this report. I hereby also want
to thanks our Dr. Tripat Kaur (Director) & also Mr. Jaiprakash Lamoria (Project
Guide) who help me for preparing this Summer Training Report.

I would also like to thanks to all staff members of Reliance Money Limited who have
help me for preparing a project work.

3
 Executive Summary

The role of Service industry is ever expanding and is becoming inseparable part
of the growth of the country. There are many financial products coming everyday in to
the pool of Service sector. Some are old and some are new from Indian context.
However, there are some products have presence in the country since long, like Demat
A/c, Trading A/c, etc. But in the era of Globalizations and with free entry of lot of private
players this product need some modification. So, in the current situation lots of different
service provided to customer regarding Investment in stock market

Now to avail such kind of Product’s detailed knowledge & various financial tools
and technique, Gujarat university, An arranged eight week summer project in any
business organization for sharpen our skills & to bridge to gap of the theory & practice. I
completed my project at RELIANCE MONEY LIMITED, Ahmedabad.

This is a General training project report prepared RELIANCE MONEY LIMITED at,
which consist of detailed analysis on the topic of “ Competitive analysis of stock
broking industry.”

4
 Contents

I. Preface…………………………………………………………………….. 2
II. Acknowledgement………………………………………………………… 3

III. Executive Summary……………………………………………………….. 4

Industry Profile………………………………………………………... 6
1.1 Indian capital market-an Overview……………………………………... 7
1.2 Indian Stock Exchanges………………………………………………… 9
1.3 Over the counter Exchange of India (OTCEI)………………………..... 12
1.4 Indian Financial Sector………………………………………………… 16
1.5 Market Players in Broking Industry……………………………………. 23

2. Company Profile……………………………………………………… 35
2.1 Introduction of Reliance enterprise……………………………………..36
2.2 About reliance money………………………………………………….. 41

3. Research Methodology……………………………………………….. 43
3.1 Statement of Problem…………………………………………………... 44
3.2 Research Objectives…………………………………………………… 44
3.3 Scope of Research…………………………………………….……….. 44
3.4 Data Sources……………………………………………………………. 45
3.5 Utility of the Study…………………………………………………....... 45
3.6 Information about Stock Brokers……………………………………… 46
3.7 Limitation of Study…………………………………………………… 61

4. Finding & Suggestion….…………………………………………………. 61

5. Conclusion………………………………………………………………… 62
6. Bibliography…………………………………………………..…………… 63

5
 CH: 1

INDUSTY

PROFILE
6
 INDIAN CAPITAL MARKET: AN OVERVIEW

Evolution of Indian Capital Market

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200
years ago. The earliest records of security dealings in India are meager and obscure. The
East India Company was the dominant institution in those days and business in its loan
securities used to be transacted towards the close of the eighteenth century.

By 1830's business on corporate stocks and shares in Bank and Cotton presses took place
in Bombay. Though the trading list was broader in 1839, there were only half a dozen
brokers recognized by banks and merchants during 1840 and 1850.

The 1850's witnessed a rapid development of commercial enterprise and brokerage

business attracted many men into the field and by 1860 the number of brokers increased
into 60.

In 1860-61 the American Civil War broke out and cotton supply from United States of
Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers
increased to about 200 to 250. However, at the end of the American Civil War, in 1865, a
disastrous slump began (for example, Bank of Bombay Share which had touched Rs 2850
could only be sold at Rs. 87).

At the end of the American Civil War, the brokers who thrived out of Civil War in 1874
found a place in a street (now appropriately called as Dalal Street) where they would
conveniently assemble and transact business. In 1887, they formally established in
Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively
known as “The Stock Exchange "). In 1895, the Stock Exchange acquired a premise in
the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay was
consolidated.

7
Other leading cities in stock market operations

Ahmedabad gained importance next to Bombay with respect to cotton textile industry.
After 1880, many mills originated from Ahmedabad and rapidly forged ahead. As new
mills were floated, the need for a Stock Exchange at Ahmedabad was realized and in
1894 the brokers formed "The Ahmedabad Share and Stock Brokers' Association".

What the cotton textile industry was to Bombay and Ahmedabad, the jute industry was to
Calcutta. Also tea and coal industries were the other major industrial groups in Calcutta.
After the Share Mania in 1861-65, in the 1870's there was a sharp boom in jute shares,
which was followed by a boom in tea shares in the 1880's and 1890's; and a coal boom
between 1904 and 1908. On June 1908, some leading brokers formed "The Calcutta
Stock Exchange Association".

In the beginning of the twentieth century, the industrial revolution was on the way in
India with the Swadeshi Movement; and with the inauguration of the Tata Iron and Steel
Company Limited in 1907, an important stage in industrial advancement under Indian
enterprise was reached.

Indian cotton and jute textiles, steel, sugar, paper and flourmills and all companies
generally enjoyed phenomenal prosperity, due to the First World War.

In 1920, the then demure city of Madras had the maiden thrill of a stock exchange
functioning in its midst, under the name and style of "The Madras Stock Exchange" with
100 members. However, when boom faded, the number of members stood reduced from
100 to 3, by 1923, and so it went out of existence.

In 1935, the stock market activity improved, especially in South India where there was a
rapid increase in the number of textile mills and many plantation companies were floated.
In 1937, a stock exchange was once again organized in Madras - Madras Stock Exchange
Association (Pvt) Limited. (In 1957 the name was changed to Madras Stock Exchange
Limited).

8
Lahore Stock Exchange was formed in 1934 and it had a brief life. It was merged with
the Punjab Stock Exchange Limited, which was incorporated in 1936.

Indian Stock Exchanges - An Umbrella Growth

The Second World War broke out in 1939. It gave a sharp boom, which was followed by
a slump. But, in 1943, the situation changed radically, when India was fully mobilized as
a supply base.

On account of the restrictive controls on cotton, bullion, seeds and other commodities,
those dealing in them found in the stock market as the only outlet for their activities.
They were anxious to join the trade and numerous others swelled their number. Many
new associations were constituted for the purpose and Stock Exchanges in all parts of the
country were floated.

The Uttar Pradesh Stock Exchange Limited (1940), Nagpur Stock Exchange Limited
(1940) and Hyderabad Stock Exchange Limited (1944) were incorporated.

In Delhi two stock exchanges - Delhi Stock and Share Brokers' Association Limited and
the Delhi Stocks and Shares Exchange Limited - were floated and later in June 1947,
amalgamated into the Delhi Stock Exchange Association Limited.

Post-independence Scenario

Most of the exchanges suffered almost a total eclipse during depression. Lahore
Exchange was closed during partition of the country and later migrated to Delhi and
merged with Delhi Stock Exchange.

9
Bangalore Stock Exchange Limited was registered in 1957 and recognized in 1963. Most
of the other exchanges languished till 1957 when they applied to the Central Government
for recognition under the Securities Contracts (Regulation) Act, 1956. Only Bombay,
Calcutta, Madras, Ahmedabad, Delhi, Hyderabad and Indore, the well-established
exchanges, were recognized under the Act. Some of the members of the other
Associations were required to be admitted by the recognized stock exchanges on a
concessional basis, but acting on the principle of unitary control, all these pseudo stock
exchanges were refused recognition by the Government of India and they thereupon
ceased to function.

Thus, during early sixties there were eight recognized stock exchanges in India
(mentioned above). The number virtually remained unchanged, for nearly two decades.
During eighties, however, many stock exchanges were established: Cochin Stock
Exchange (1980), Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982),
and Pune Stock Exchange Limited (1982), Ludhiana Stock Exchange Association
Limited (1983), Gauhati Stock Exchange Limited (1984), Kanara Stock Exchange
Limited (at Mangalore, 1985), Magadh Stock Exchange Association (at Patna, 1986),
Jaipur Stock Exchange Limited (1989), Bhubaneswar Stock Exchange Association
Limited (1989), Saurashtra Kutch Stock Exchange Limited (at Rajkot, 1989), Vadodara
Stock Exchange Limited (at Baroda, 1990) and recently established exchanges -
Coimbatore and Meerut. Thus, at present, there are totally twenty-one recognized stock
exchanges in India excluding the Over The Counter Exchange of India Limited (OTCEI)
and the National Stock Exchange of India Limited (NSEIL).

The Table given below portrays the overall growth pattern of Indian stock markets since
independence. It is quite evident from the Table that Indian stock markets have not only
grown just in number of exchanges, but also in number of listed companies and in capital
of listed companies. The remarkable growth after 1985 can be clearly seen from the
Table, and this was due to the favoring government policies towards security market
industry.

10
 Growth Pattern of the Indian Stock Market

As on 31st
Sl.No. 1946 1961 1971 1975 1980 1985 1991 1995
December
No. of
2 1125 1203 1599 1552 2265 4344 6229 8593
Listed Cos.
No. of Stock
3 Issues of 1506 2111 2838 3230 3697 6174 8967 11784
Listed Cos.
Capital of Listed
4 270 753 1812 2614 3973 9723 32041 59583
Cos. (Cr. Rs.)
Market value of
5 Capital of Listed 971 1292 2675 3273 6750 25302 110279 478121
Cos. (Cr. Rs.)
Capital per
6 Listed Cos. (4/2) 24 63 113 168 175 224 514 693
(Lakh Rs.)
Market Value of
Capital per Listed
7 86 107 167 211 298 582 1770 5564
Cos. (Lakh Rs.)
(5/2)
Appreciated value
8 of Capital per 358 170 148 126 170 260 344 803
Listed Cos. (Lakh Rs.)

Source: Various issues of the Stock Exchange Official Directory, Vol.2 (9) (iii), Bombay
Stock Exchange, Bombay.

Trading Pattern of the Indian Stock Market

Trading in Indian stock exchanges is limited to listed securities of public limited

companies. They are broadly divided into two categories, namely, specified securities
(forward list) and non-specified securities (cash list). Equity shares of dividend paying,
growth-oriented companies with a paid-up capital of at least Rs.50 million and a market
capitalization of at least Rs.100 million and having more than 20,000 shareholders are,
normally, put in the specified group and the balance in non-specified group.

Two types of transactions can be carried out on the Indian stock exchanges: (a) spot
delivery transactions "for delivery and payment within the time or on the date stipulated

11
when entering into the contract which shall not be more than 14 days following the date
of the contract”: and (b) forward transactions "delivery and payment can be extended by
further period of 14 days each so that the overall period does not exceed 90 days from the
date of the contract". The latter is permitted only in the case of specified shares. The
brokers who carry over the outstanding pay carry over charges (cantango or
backwardation) which are usually determined by the rates of interest prevailing.

A member broker in an Indian stock exchange can act as an agent, buy and sell securities
for his clients on a commission basis and also can act as a trader or dealer as a principal,
buy and sell securities on his own account and risk, in contrast with the practice
prevailing on New York and London Stock Exchanges, where a member can act as a
jobber or a broker only.

The nature of trading on Indian Stock Exchanges are that of age old conventional style of
face-to-face trading with bids and offers being made by open outcry. However, there is a
great amount of effort to modernize the Indian stock exchanges in the very recent times.

Over The Counter Exchange of India (OTCEI)

The traditional trading mechanism prevailed in the Indian stock markets gave way to
many functional inefficiencies, such as, absence of liquidity, lack of transparency, unduly
long settlement periods and benami transactions, which affected the small investors to a
great extent. To provide improved services to investors, the country's first ringless,
scripless, electronic stock exchange - OTCEI - was created in 1992 by country's premier
financial institutions - Unit Trust of India, Industrial Credit and Investment Corporation
of India, Industrial Development Bank of India, SBI Capital Markets, Industrial Finance
Corporation of India, General Insurance Corporation and its subsidiaries and CanBank
Financial Services.

Trading at OTCEI is done over the centres spread across the country. Securities traded on
the OTCEI are classified into:

12
 • Listed Securities - The shares and debentures of the companies listed on the OTC
can be bought or sold at any OTC counter all over the country and they should not
be listed anywhere else

• Permitted Securities - Certain shares and debentures listed on other exchanges and
units of mutual funds are allowed to be traded

• Initiated debentures - Any equity holding at least one lakh debentures of a

particular scrip can offer them for trading on the OTC.

OTC has a unique feature of trading compared to other traditional exchanges. That is,
certificates of listed securities and initiated debentures are not traded at OTC. The
original certificate will be safely with the custodian. But, a counter receipt is generated
out at the counter which substitutes the share certificate and is used for all transactions.

In the case of permitted securities, the system is similar to a traditional stock exchange.
The difference is that the delivery and payment procedure will be completed within 14
days.

Compared to the traditional Exchanges, OTC Exchange network has the following
advantages:

• OTCEI has widely dispersed trading mechanism across the country which
provides greater liquidity and lesser risk of intermediary charges.
• Greater transparency and accuracy of prices is obtained due to the screen-
based scripless trading.
• Since the exact price of the transaction is shown on the computer screen, the
investor gets to know the exact price at which s/he is trading.
• Faster settlement and transfer process compared to other exchanges.
• In the case of an OTC issue (new issue), the allotment procedure is completed
in a month and trading commences after a month of the issue closure, whereas

13
 it takes a longer period for the same with respect to other exchanges. Thus,
with the superior trading mechanism coupled with information transparency
investors are gradually becoming aware of the manifold advantages of the
OTCEI.

National Stock Exchange (NSE)

With the liberalization of the Indian economy, it was found inevitable to lift the Indian
stock market trading system on par with the international standards. On the basis of the
recommendations of high powered Pherwani Committee, the National Stock Exchange
was incorporated in 1992 by Industrial Development Bank of India, Industrial Credit and
Investment Corporation of India, Industrial Finance Corporation of India, all Insurance
Corporations, selected commercial banks and others.

Trading at NSE can be classified under two broad categories:

(a) Wholesale debt market and

(b) Capital market.

Wholesale debt market operations are similar to money market operations - institutions
and corporate bodies enter into high value transactions in financial instruments such as
government securities, treasury bills, public sector unit bonds, commercial paper,
certificate of deposit, etc.

There are two kinds of players in NSE:

(a) Trading members and

(b) Participants.

Recognized members of NSE are called trading members who trade on behalf of
themselves and their clients. Participants include trading members and large players like
banks who take direct settlement responsibility.

14
Trading at NSE takes place through a fully automated screen-based trading mechanism,
which adopts the principle of an order-driven market. Trading members can stay at their
offices and execute the trading, since they are linked through a communication network.
The prices at which the buyer and seller are willing to transact will appear on the screen.
When the prices match the transaction will be completed and a confirmation slip will be
printed at the office of the trading member.

NSE has several advantages over the traditional trading exchanges. They are as follows:

• NSE brings an integrated stock market trading network across the nation.

• Investors can trade at the same price from anywhere in the country since inter-
market operations are streamlined coupled with the countrywide access to the
securities.

• Delays in communication, late payments and the malpractice’s prevailing in the

traditional trading mechanism can be done away with greater operational
efficiency and informational transparency in the stock market operations, with the
support of total computerized network.

Unless stock markets provide professionalised service, small investors and foreign
investors will not be interested in capital market operations. And capital market being one
of the major sources of long-term finance for industrial projects, India cannot afford to
damage the capital market path. In this regard NSE gains vital importance in the Indian
capital market system.

After adjustments for purchasing power parity, India’s economy is the

fourth largest in the world in terms of Gross Domestic Product (“GDP”).
An efficient securities market provides the necessary channel for flow
of resources from the providers of capital to the users of capital for
economic development. The overall growth of the economy and
economic activity are also important factors, which determine

15
availability of resources. The following table illustrates India's GDP
growth between 2004 and 2007.

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 recent years and
the entry of sophisticated domestic and international financial services
participants. Sectors such as banking, asset management and
brokerage have been liberalised to allow private sector involvement,
which has contributed to the development and modernisation of the
financial services sector. This is particularly evident in the nonbanking
financial services sector, such as brokerage, residential 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 total GDP in
fiscal 2007.
The combined average daily turnover of the BSE and the NSE for
different market segments has increased from approximately Rs. 4.8
billion in March 1996 to approximately Rs. 312.1 billion in March 2006.
Over this
period, there has also been a substantial growth in the market for
other financial products such as insurance, and mutual funds.

16
Regulatory Developments
AT The following are certain regulatory developments in the Indian
financial sector since India's economic reforms.

Securities and Exchange Board of India (SEBI) Act, 1992

As part of the reforms process, the Capital Issues (Control) Act, 1947
was repealed in 1992 and replaced by the SEBI Act, 1992, paving the
way for market-determined allocation of resources. Under the SEBI Act,
1992, issuers complying with eligibility criteria are allowed the freedom
to issue securities market-determined rates. SEBI exercises control
over the market through the issuance of guidelines and rules for
various capital market activities and of regulations for intermediaries
and stock exchanges.
The SEBI Act established SEBI with the primary objective of protecting
the interests of investors in securities. SEBI requires critical data
regarding all relevant market participants to be disclosed on specified
forms. The Investor Education and Protection Fund was established for
the promotion of awareness among investors and
protection of investor interests. The Department of Economic Affairs,
Department of Company Affairs, SEBI and the stock exchanges have
set up an investor grievance division for redressing investor
grievances. The exchanges also maintain investor protection funds to
satisfy certain investor claims.

Screen Based Trading

Trading on stock exchanges in India used to take place through an
open outcry system without use of information technology for
immediate matching or recording of trades. In order to provide
efficiency, liquidity and transparency, in 1996 the NSE and the BSE
introduced a nationwide, on-line and fully-automated screen based

17
trading system. Introduction of these trading systems has been one of
the key developments in the Indian
capital market.

Trading Cycle
In the early 1990s, trades were accumulated over a trading cycle and
at the end of the cycle, trades were netted out and followed by
payment of cash and delivery of securities in order to settle the
balance. This trading cycle varied from 14 days for specified securities
to 30 days for others and settlement took another fortnight. In order
to reduce large open positions, the trading cycle was reduced to a
week. The stock exchanges, however, continued to have different
weekly trading cycles, which enabled shifting of positions from one
exchange to another. Rolling settlement on a T+5 basis was introduced
in 1996 and as a result, for specified scrips, the trading cycle was
reduced to one day. It was made mandatory for all stock exchanges to
follow a uniform weekly trading cycle in respect of scrips not under
rolling settlement. All scrips were moved to the rolling settlement in
December 2001. The settlement period has been reduced
progressively from T+5 to T+3 days to the current T+2 day settlement
cycle.

Derivatives Trading
To assist market participants in managing risks better than through
hedging and arbitrage, the Securities Contracts (Regulation) Act, 1956
(“SCRA”) was amended in 1995 to lift the ban on options in securities.
The SCRA was amended further in December 1999 to expand the
definition of securities to include derivatives so that the whole
regulatory framework governing trading of securities could apply to
trading of derivatives as well.

18
In the meantime exchanges developed infrastructure and the
information systems required to implement trading discipline in
derivative instruments. Derivative trading commenced in June 2000 on
the NSE and the BSE. The market presently offers index futures and
index options on three indices and stock options and stock futures on
individual stocks (presently 187 stocks on the NSE as of June 2007)
and futures in interest rate products like notional 91-day T-bills and
notional 10-year bonds.
Demutualisation (Segregation of ownership from management)
Historically, brokers owned, controlled and managed stock exchanges
in India. The Government proposed in March 2001 to corporatise the
stock exchanges and thereby segregate ownership, management and
trading membership. A few stock exchanges have already initiated the
demutualisation process. The Government has offered a variety of tax
incentives to facilitate corporatisation and demutualisation of stock
exchanges. The NSE has adopted a demutualised governance structure
where ownership, management and trading are separated to help
reduce conflicts of interest. The BSE also recently has completed
demutualisation.

Depositories Act
The settlement system on Indian stock exchanges gave rise to
settlement risk due to the lapse of time before trades were settled. The
historical process of physically moving securities among different
parties took time with the risk of delay along the chain. A significant
proportion of transactions ended up as bad deliveries due to non-
compliance with paperwork. This added to costs, restricted liquidity
and made investor grievance redressal time consuming and at times
intractable. To obviate these problems, the Depositories Act, 1996 was
passed. As of mid-June, 2007, more than 6,670 companies were
connected to NSDL and 5,660 to CDSL. All actively traded scrips are

19
now held, traded and settled in uncertificated form. Uncertificated
settlement (known in India
as “Dematerialised Settlement”) accounts for over 99% of turnover
settled by delivery. This has substantially eliminated bad deliveries and
associated settlement problems. To prevent physical certificates from
coming into circulation, it has been made mandatory for all new public
offerings to be traded in uncertificated form. The admission to a
depository for holding securities in uncertificated form has been made
a prerequisite for making a public offering, rights issue or an offer for
sale.

Indian Capital Markets

There were 1,228 companies listed on the National Stock Exchange

and 4,821 companies listed on the Bombay Stock Exchange as of
March 31, 2007. In recent years, the capital markets have undergone
substantial reforms in regulation and supervision. Reforms, particularly
the establishment of SEBI, market-determined prices and allocation of
resources, screen-based nation-wide trading, T+2 settlement, scripless
settlement and electronic transfer of securities, rolling settlement and
derivatives trading have greatly improved both the regulatory
framework and efficiency of trading and settlement. There presently
are 22 recognized stock exchanges in India, as well as the over-the-
counter Exchange of India (“OTCEI”) for small and new companies and
the NSE, which
was set up as a model exchange to provide nationwide services to
investors. In 2003, the NCDEX and the MCX were set up for trading of
futures in various commodities.

20
Primary Equity Market
The primary segment of the capital markets in India has been
witnessing a surge in activity driven by the strong fundamentals of the
Indian economy, improved corporate results, a buoyant secondary
market, structural reforms by the Government and an investor-friendly
framework. and retail investors.
.

Secondary Equity Market

The Indian equity markets have been witnessing strong growth since
2003 with the benchmark BSE Sensex crossing the 14,500 mark in
February 2007 from 6,600 in January 2005 and 5,200 in September
2005
The average daily turnover at the NSE and for different market
segments has increased from approximately Rs. 68 billion in 2001 to
approximately Rs. 382 billion in March 2007. Over this period, there
also has been a substantial growth in the market for other financial
products, such as insurance and mutual funds.

Equity Brokerage
The evolution of the Indian capital markets has stimulated rapid
consolidation due to increased trading volumes, increased regulation,
customer sophistication, better technology and increased back-office
requirements. As a result, significant changes have been introduced to
strengthen risk management systems. Changes in the
regulatory framework and settlement mechanics have resulted in the
smaller operating participants losing their market share, leading to a
consolidation in the industry.
The market share of the top five brokers on the NSE has increased
from 12% in Fiscal 2004 to approximately 15% in March 2007. The
market share of the top ten brokers on the NSE has grown from

21
approximately 17% in Fiscal 2004 to 24% in March 2007, and the share
of the top 25 brokers on the NSE has grown from 30% in Fiscal 2004 to
43% in March 2007. These figures indicate a long-term consolidation
process in a highly fragmented securities brokerage industry, with
numerous smaller participants exiting the market and larger brokers
gaining market share. Market consolidation is even more pronounced
in the on-line trading category where the top five brokers control
almost the entire market. The rapid growth in on-line trading volumes
can be attributed to growing sophistication of retail investors,
availability of reliable Internet connectivity and sophistication of
Internet-based trading products. The following table illustrates the
trading volume on the NSE and the percentage traded by the top
brokers from 2003.

Internet Trading
At the end of March 2006, 142 members on the Capital Market
segment and 127 on the Futures and Options Segments were
permitted to allow investor’s web-based access to the NSE’s trading
system. The members of the Exchange in turn had registered
1,443,291 clients for web-based access as of March 31, 2006. In the
NSE Capital Market segment in Fiscal 2006, approximately Rs. 183
billion, constituting 11.68% of total trading
volume, were routed and executed through the Internet. The following
table gives the growth of Internet trading.

Mutual Funds
As of March 31, 2007, there were 756 mutual funds in India with total
assets under management of Rs. 2,544 billion. From 1963 to 1987, Unit

22
Trust of India was the only mutual fund operating in the country. It was
set up in 1963 at the initiative of the government and the RBI. From
1987, several other public sector mutual funds
entered this sector. These mutual funds were established by public
sector banks, the Life Insurance Corporation of India and the General
Insurance Corporation of India. The mutual funds industry was opened
up to the private sector in 1993. The industry is regulated by the SEBI
(Mutual Fund) Regulation, 1996.
The mutual fund industry has also experienced considerable activity
over last few years with total assets under management growing from
Rs. 1,396 billion as of March 31, 2004 to Rs. 3,263 billion as of March
31, 2007. In recent years, the industry has witnessed consolidation in
favour of private sector mutual funds whose assets under management
have grown from Rs. 1,049 billion as of March 31, 2004 to Rs. 2,567
billion as of March 31, 2007. Most of the funds that dominate the
sector are open-ended funds.
The mutual fund sector can broadly be divided based on the nature of
the schemes launched by the mutual funds. The fixed income asset
class, which comprises income, liquid, gilt and money market schemes,
comprises a major share of total funds under management. The other
two asset classes are equity and balanced schemes, which have
experienced significant growth recently on account of the robust stock
market.

Insurance Sector

The insurance market was opened to the private sector in 2001. Since
then, various foreign and Indian private sector participants have
targeted market potential by providing a range of customized
products. Major foreign insurance companies such as New York Life,

23
Aviva, Tokio Marine, Allianz, Standard Life, Lombard General, AIG, AMP
and Sun Life, among others, have announced joint ventures in both life
and non-life insurance areas. As a result of the increased competition,
state sector companies have become more aggressive in their product
offerings, marketing strategies and distribution channels. According to
the Insurance Regulatory Development
Authority, the life insurance market has grown by 120% in the period
from April 1, 2006 to February 28, 2007. The general insurance market
has grown by 23.7% during the same period.

Investment Banking
With the Indian economy maturing, Indian companies are also
evaluating different means to raise capital in the equity and debt
capital markets. The volume of activity in equity capital markets as
well as the transaction advisory market have increased significantly.
With the increase in activity levels and entry of foreign investment
banks in India, competition is intensifying. However, there is a large
number of small and mid-sized companies, which is increasing the
market size of investment banking activities.

Transaction Advisory
There has been a significant increase in the merger and acquisition
activities by Indian companies in recent years. This continuing increase
is evident in the inbound, outbound and domestic segments.

Equity Capital Markets

With the growth in various sectors of the Indian economy, Indian
companies have been increasingly raising funds in both domestic and
international equity capital market. The following chart indicates the
total volume of transaction advisory and equity activity in India for last
three years:

24
 Industry Outlook
Existing low penetration levels, increasing affordability of credit and
rising income levels have led to a growing demand for retail financial
products. India has a substantial retail investor base throughout the
country that has a large pool of untapped surplus funds. The market
confidence of small investors has increased with growing levels of
education and financial awareness, and the strengthening of
regulatory systems. The financial services
Industry is undergoing consolidation. In the future, it is expected that
market share will be captured by financial services providers who can
offer a complete range of financial products and services.

Companies in the broking industry

 Dan Technologies, Delhi

Offering services such as security consulting services, security implementation
services, security engineering services, safety consulting services, access control services
and intrusion detection services.

 Exponential Commodity Services Private Limited

Leading financial management and broking houses engaged in stocks, derivatives and
commodities trading on the major capital market exchanges in india like NSE/ BSE and
commodities exchanges, NCDEX (National Commodities and Derivatives Exchange).
 Appuonline Consultancy Services Pvt. Ltd.
Share Broking, Mutual Fund Distribution
 Pioneer Investment Consultancy
Provides services of stock exchange, empanelled brokers, mutual funds, secondary market
debt papers, physical/demat listed/delisted shares of indian companies.
 Fundquest Consulting
Offering services like working capital funding services, private equity services, venture capital
services, bridge capital services and foreign direct investment services.

 Vittam Advisors Private Limited

25
Providing all kinds of equity share services, mutual funds services, commodity futures
services etc.
 Bharti Fexp
Providing equity anaysis services, commodity analsis services, sub broker services, fund
manager services etc.

 Niki Impex
Providing share tips, commodity tips, investment recommendations etc. service for Indian
share.
 Diginet Software
Providing all kinds of stock exchange.
 Rajive & Co
Commodity brokers of sugar.

 Stock Onlinee
Providing all kinds of stock broking services.
 Navnitjoshi Securities
Providing all kinds of trading in equity, share investments, mutual funds etc.
 Apex Recruitment & Management Consultants
Offering services of stock market.
 1st Financial & Management Services
Providing all kinds of stock market services, mutual funds services etc.
 Securities Trading Corporation India Limited
Underwriters of government securities and bonds, treasury bills, PSU bonds, short term
investments and call money, issued by public sector undertakings.

 Hira Stocks Solution Private Limited

Providing all types of equity investment advisor, equity shares consultants etc.
 Aadvance Solutions
Providing all kinds of equity services, commodity services, forex services, mutual fund
services, Ipo services etc.
 Navkar Equity Solutions Private Limited
Providing share brokers services.
 Gupta Promoters
Involved in offering brokerage services.
 Sugal & Damani Lottery Agency Private Limited

26
Offering consulting services such as stock broking services.

 Vasanti Share Brokers Limited

Providing services of bse stock market broker, nse stock market broker, mcx stock market
broker, best indian stock broker, top indian stock market broker etc.
 B. L. B. Limited
Providing all kinds of share broking services.
 Agrawal Invesment Consultants
Engaged in providing services like mutual fund investment services and share trading
services.
 Vigilant Technologies
Manufacaturers and exporters of cctv, remote survillance, guard monitoring system, access
control system, lpg gas leak detector and burglar alarm etc
 Sun Securities
Providing all kinds of mutual funds, sbi mutual funds, hdfc mutual funds, birla sun life mutual
funds, franklin templeton mutual funds, reliance mutual funds, fidelity mutual funds etc.

 Navia Markets Limited

Provides all types of mutual funds service, equity trading service, online nri trading service
etc.
 One Source Financial Services
Offering mutual funds services and equity trading services.
 Xpertz Broking Private Limited
Providing all kinds of mutual funds, govt securities, bonds, ipos, share trading etc.
 Bonanza Portfolio
Engaged in providing share trading services.
 aypee Capital Services Limited
Provides trading, research, advisory services for shares.

 Ace Tech Agencies

Providing services of commission agents.
 SDPL
Provides services as investment consultants.
 Tata Share Registry Limited
Providing share registry services.
 Refco
Provides share brokerage services.

27
 B. N. R. Capital Services Private Limited
Engaged in providing services of stock broker services and share broker services.

 Prudential Capital Investments

Providing share brokerage services.
 Jm Morgan Stanley Fixed Income Securities Private Limited
Offering broker services, w t broker services and stock brokers services.
 T. M. P. International Traders
Involved in offering share commodities services and capital market services
 Agroy Finance & Investment Limited
Providing stock broking, investment banking, accounts, audit and taxation services.
 Rachana Investment & Finance
Providing services of share stock brokers and financial consultants.

 Metal Wood Systems

Providing share related services.
 Refco Commodities India Private Limited
Providing services like advisory and broking of commodity fixtures.
 Hi Gain Securities
Providing services as stock brokers.
 Smc Global Securities Limited
Dealers of share broking, mutual funds etc.
 El & En Education Trust
Provides services through investments & small savings.

 Target
Providing professional guidence as technical analyst for buying and selling shares listed on
bombay stock exchange and national stock exchange.

 Investment Point
Provides services in investment consultancy.
 S. P. K. International, Gurgaon
International broker of coal, petroleum and steel.
 S. S. A. Financial Services
Providing share related services.
 Aeonian Investment Company Limited
Engaged in providing services of share consultant and investment in share.

28
 Pelf Finestock
Offering services like nse consultancy services, bse consultancy services and commodity
consultancy services.
 Angel Broking Limited, Mumbai
Providing services related to shares and stocks.
 V. S. Consultants, Mumbai
Indian stock consultants with advise on investments on Indian bourses
 Zen Capital Holdings
Providing services of finance against shares of bse/nse listed companies.
 Tachukdi
Provides broker services.

 Commodities Power
Providing all kinds of stocks services.
Association Of NSE Member Of India
Dealing into NSE stock and brokers.
 Capital Via International Services
Providing services for stock exchange consultancy.
 Srisivan Foods India Private Limited
Providing brokerages.
 Almonds Capital Market Private Limited
Offering online share trading services and equity trading services.

 Legend Securities Limited

Provides services as share broker.
 B. L. B. Limited, New Delhi
Providing services related to sale purchase of shares.
 N. C. C. Telecom Private Limited
Manufacturers of building automation system , video apartment and access system, building
intercom and security system.
 Mata Securities India Pvt. Ltd.
 Indian debt broking house
 Vidkris Finserve
Providing services for nse, bse, ncdex, mcx and consultancy in mutual funds.

 J. K. Consultancy
Providing security consultancy services.

29
 Refco-Sify Securities India Private Limited
Providing stock broking services.
 Abhipra Capital Ltd.
Provide services like online share trading, depository services, money changing services,
legal consultancy, Brokering services with NSE, BSE, DSE etc.
 Market Creators Limited
Providing stock broking services.
 Depe Global Shipping Agencies Private Limited
Providing all types of services related to chartering brokers.

 Amit Nalin Securities Private Limited

Provides services in stock broking.
 Kanha Fincap Private Limited
Providing services related to shares and stocks brokers.
 Vruddhi Capitals & Commodities
Providing services like online share trading and commodities trading.
 C. R. V. Consultants
Providing stock market consultancy services.
 Pushp Consulting
Providing advisory services for trading & investment of share and govt. securities.

 Dalmia Securities Ltd.

Provide Services related to Stock - Brokers , Depository participant, Dematerialisation , NRI
Investment in India, Shares & debentures & Bonds
 Aditya Consultant, Pune
Offering stock market, commodity market, portfolio consultants, securities consultants etc.
 S. N. Dhawan & Company
Providing stock and share brockers services.
 Geojit Securities Limited, Kochi
Providing all types of stock and share broking services.
 Shekhar Resorts
Providing services of security solutions for a five star hotel.

 Financial Consultants
Providing all kinds of share trading services, stock broking services etc.
 Investment Intermediates Limited
Investment Intermediates Limited is a corporate member of mumbai stock exchange and

30
national stock exchange.
 Rajpoot Securities Co.
Providing security solutions.
 Sino Credits & Leasing Limited
Provides stock and share brokers services.
 Commodity Consultants International, Mumbai
Providing consultancy and broker services for steel, stainless steel, rice, sugar, spices and
other commodities.

 Contemporary Targett Limited

Provides brokers for tea and tea related products.
 Interem (india) Private Limited
Providing Services of broker.

 G. K. Shares And Stocks

Providing services as a intermediary.
 IIT Investrust Limited
Provides services of stock broking house
 Jpr Agencies Private Limited
Providing services of broker services.

 Motilal Oswal Commodities Brokers Private Limited

Providing stock and commodity brokers services.
 Bijoy Kumar Gupta
Offering consulting services such as brokers, comission agent and intermediary service.
 Bhartiya Gurukul Private Limited
Providing consultancy services for stock marketing services and stock broking services.
 J.Thomas & Company Private Limited
Provides brokers for tea.
 Force Tech Security India Private Limited
 Sathi Share
Provide security consultancy services.
Engaged in providing stock trading services.
 Arthi Consultants Private Limited
Offering services such as share registrars services and transfer agents services.
 SR Khandelwal & Co.
We offers share broker.
 Vimal Consultant
Providing shares brokerage services.
 Aan Consultants 31
Providing secondary market in equities in stock exchange services.
 Aplomb Corporation
Providing security services.
 Shares & Commodities
Providing services of brokers of shares and commodities in NSE, BSE, MCX, NCDEX.
 Equity Analysis, Inc.
Providing all kinds of stock investment services, stock analysis services, portfolio service
services, online help services etc.
 Source One
Offering consultancy for equities trading services.
 Bazaar Buzz
Trading in stock market.

 FFE Minerals India Ltd., Chennai

Offers broker service and commissioning service.
 Doon Stock Brokers Private Limited
Providing services related to shares, stock brokers and depository services.
 Sai Nath Investments
Providing services related to shares and stocks brokers.
Provides stock broking services, securities dealing, advisory services etc.
 S. S. M. Comex
Deals in multi commodity exchange.

32
 Security Concepts
Provides security consultacy services.
 Shri Avs Holdings
Providing all kinds of online share trading services.
 Lion Financial Services
Providing all kinds of stock broking services.
 Commodities Broking Company
Providing consultancy services for share broking and share commodities.
 Globe Detective Agency Private Limited, Delhi
Provides security consultancy services.

 Lahiri Online
Providing services related to technical analysis on indian share market based on proven and
most reliable softwares of international acclaim.
 Rajrani
acts as stock lot broker
 Infokush
Dealing in software relating stockmarket
 Orphan Group Of Industries
Providing all kinds of shares, mutual fund etc.
 Netgains Technologies
Providing services like stocks online for stock brokers and depository participants.

33
 J. V. Capital Services
Providing stockbrokers services, specialising in domestic and international arbitrage and
catering to nri investments.
 Soham Sharma
Providing consultancy services for share investment, loans and speculation services. Also
provide services in the field of family, politics, property, investments, career, vaastu shastra,
property investments, marriage life, traveling and speculation.
 Gupta Commodities Private Limited
Providing commodities broking service, share broking service, stocks broking service etc.
 G. C. M. Securities Limited
Providing services of online share trading with positive recomendation.
 ICICIGold.com
Dealing into share and gold.

 Coimbatore Stock Exchange Limited

Provide stock exchange benefits.
 CCMS (P) Ltd
Provide services of stock brokers and demat services.
 Krishna Share Astrology Consultant
Provide brokrage services for shares.
 Anagram Stockbroking Limited, Pune
Involved in offering share broking consultancy services, consultancy services and share
negotiators consultancy services.
 Joy Shipping Servicespvt Limited
Offer sevices like broker services.

 Marshal Security Services

Provides security services.
 Reliance Money Limited
Providing share consultancy services.
 B. N. Rathi Securities Limited
Provide services such as share brokers.

34
 I. C. L. Consultancy Services Private Limited
Offering mutual fund investment services.
 Karthick
Provide services such as shares.

 Cammron Security Systems

Providing electronic security consultancy services.
 Aarnik Securities
Offering share brokers and equity mutual funds brokers.
 Semri Capitals, Delhi
Providing share consultancy services.
 Apollo Sindhoori Capital Investments Limited
Providing online share trading services.
 Sourabh Gilts & Securities Limited
Providing services like psu bonds, rbi bonds, capital gain bonds, public sector undertaking
bonds, mutual funds and government securities.

 Shrisharepandit Consultants Private Limited

Providing services related to share market.
 Pearl Shipping Agencies
Provide Agency Services & Chartering Brokers.
 Adinath Capital Services Limited
Provides share broker services.
 Kingdom Express
 Its an international trade agent, on commission basis. Our services are dealing in rice,
refuse sacks, mosquito coil, construction machinery, furniture, marine products, iron ore,
metal scraps.
 T. S. K. & Company
Offering consulting services such as stock investing services.

 RBK Share Broking Limited

Providing services of stock broking.
 Alankit Assignments Limited
One of the national stock exchange member.
 Kakani Securities Private Limited
Providing all types of securities services.
 A K Capital Services Limited

35
 Stock Brokers and member NSE & DSE.
 Growmore Securities
Providing stock broking services.

 Global Detective Company

Providing security consultant services.
 R.K.Global Shares & Securities Ltd.
Offers share purchase and sale related services.
 Lyman Container Line
Engaged in providing services like broker.
 Viratech Enterprises Pvt. Ltd.
Provides services related to stock quotes for the Bombay, National & Calcutta Stock
Exchanges for use in all popular Technical Analysis programmes

 True value Securities & Fin Private Limited

Providing national stock exchange services.

 Jayacon International
Provides broker services
 India Infoline Securities Private
Providing stock broking, mutual funds, share trading and ipo's trading.
 FDI Project Management & Services Pvt.Ltd
Approval for transfer of shares to NRI's and Foreign nationals

 Shreenathji Shares & Securities

Providing all kinds of share trading services.
 Cargomar Private Limited
Providing services related to customs broker.

 A. C. E. Security & Allied Services

Providing various types of private security services.
 R. R. Equity Brokers Private Limited
Offering services like equity consultants, share consultants and commodities consultants.
 India Bulls
Providing stock broking services.
 Consultant
Provides Services As a Investment Consultant.
 Brilliant Securities Limited

36
Provide services such as share brokers.

 Integrated Stock Broking Services

Providing share broking services through membership in national stock exchange and share
depository service through membership in national securities depositories limited.
 Kalia Pankaj & Associates
Providing stock brokers services.

CH: 2

Company

Profile
37
 Reliance Enterprise
The Reliance – Anil Dhirubhai Ambani Group is among
india`s top three private sector business houses on all
major financial parameters, with a market capitalization
of Rs 100,000 crore (US$ 22 billion), net assets in
excess of Rs 31,500 crore ( US$ 7 billion), and net worth
to the tune of Rs 27,500 crore (US$ 6 billion)

38
Across different companies, the group has a customer base
of over 50 million, the largest in India, and a shareholder
base of over 8 million, among the largest in the world.

Through its products and services, the Reliance - ADA

Group touches the life of 1 in 10 Indians every single day.
It has a business presence that extends to over 4,500 towns
and 300,000 villages in India, and 5 continents across the
world.
The interests of the Group range from communications
(Reliance Communications) and financial services
(Reliance Capital Ltd), to generation, transmission and
distribution of power (Reliance Energy), infrastructure and
entertainment.

39
 Our Founder

“Think big, think fast, think ahead. Ideas

are no one’s monopoly”

40
 Dhirubhai H. Ambani

Our Chairman’s vision

“We live in a world where the young are reaching higher,

dreaming bigger and demanding more; a world that is challenging
the limits of hope and possibility.

Nowhere is this more strikingly visible than in India – a country

that wakes up every morning a little younger in age, but infinitely
more ambitious in spirit.”

41
Anil D. Ambani

Our Mission

…. is to attract, nurture & retain a team of competitive, growth

oriented talent who :-

 consistently deliver share-holder returns of 20%+ year-on-

year
 Are responsive to Employee Needs & achieving an
employee satisfaction index of 90%+ and…
 are committed to making Reliance Capital among the top 3
“Best Employers to work for” in India

42
through Transparent & Robust HR processes

Introduction to Reliance Money

 Reliance Money provides investors with the facility of

anytime-anywhere online trading in all major asset classes,
namely:
Equity
IPO
Mutual Funds
Commodities
Forex

43
  Network of kiosks have been set up across the country to
facilitate the above trading activities
 Reliance Money provides entire commodity related services
such as broking distribution and warehouse receipt financing
 Reliance Money is also into the distribution of financial
products and Gold Coins
 Within two years of operations Reliance Money has spread
across 80 locations with more than one thousand employees
About Reliance Money
 Currently 1000+ employees across 75 locations spread across
the country.

 The Corporate Office at Wadala, Mumbai has approx 250

people belonging to these various functions .

 Largest NBFC in India

 Among the Top 3 private sector companies in financial

services sector

44
 Zero debt company and no NPA’s

CH: 3

Research

45
Methodology
I.
STATEMENT OF PROBLEM

The criteria and preferences considered the different stock brokers.

Research Objectives

There must an objective behind any research. Without objective there is no

meaning of research. :

• The main objective of this research is to find the scope of the Demat & Trading
Accounts of Reliance Money Limited.
• It will also measure the awareness of online trading in the market of Ahmedabad
city.
• It aims at finding the consumers preference or criteria to select the share broking
house for their investment.
• To know that how the variables such as company performances, services,
different types of charges, the company profile, etc. affect the consumers
choice of the Demat Account or trading account holdings

46
 SCOPE OF THE RESEARCH
• Understanding various types of investment avenues available to mobilize the
surplus funds.
• To study about various products and services offered by brokers to their clients
and the charges for the same.
• To study about the various considerations, requirements (statutory or otherwise)
of the brokers.
• To understand various services, facilities and offerings of brokers to their clints.
• To understand various success criterias of brokers having high turnover and good
client base and analyze the key factors of their success.

DATA SOURCE
Primary Sources
The data was collected through making personal visit at the regional head office of
different brokers and asking them about various criterias taken into consideration. The
data was collected on the basis of the list of brokers given by our project guide and the
addresses of the brokers was collected thereof.

The data regarding various charges was available from the back office of the brokers and
certain statutory requirements such as documents for A/c opening etc being the same
everywhere were given less preference for the purpose.

UTILITY OF THE STUDY

To Reliance Securities Limited:

• The company will be able to know the various preferences, considerations,
requirements as well as the offerings of various competitors in the market
• It will help in framing strategy, which is competitive enough to cover all the
essential offerings of the competitors.

47
 • The company will be able to know the key factors which are responsible for the
success of major market leaders in the broking industry.

Information about Stock Brokers

Reliance Money Limited

Features:-

• Cost-effective: Pay a flat fee of just Rs. 500/- valid for 2 months or specified
transactional value.
• Convenience: Go online, through your broker/agent, Call & Trade or Kiosk
• Security: Dynamic password - keeps the account extra secure
• Widest product range: Equity, Commodities, Derivatives, Offshore, Mutual
Funds, IPOs, Insurance
• Other value-adds: Live news from Dow Jones, research, expert views, etc
available free and in real time

Account opening fee & other charges:-

• The initial account opening charges are Rs. 750/- which are lifetime account
opening charges. These charges have been waived off for corporate clients.

• AMC charge of Rs. 50/- is applicable which is the lowest in the industry.

• For additional Rs. 500/- a client can trade in volumes upto Rs. 5 lakh with time
validity of maximum 1 year. There is a Rs. 500/- waiver for general clients
(individuals).

• Also certain prepaid coupon systems are provided which provide the customer
different trading volume limits along with different time validity limits as suited
to different clients as per their needs. These coupon systems have been mentioned
below:-

48
 Brokerage Structure for Reliance Money
ONLINE OFFLINE
BUY SELL BUY SELL
1 paisa 1 paisa 1 paisa 1 paisa
Rs. 15 (D.P. charge)* Rs. 15 (D.P. charge)#
Rs. 15 (assistance Rs. 15 (assistance
charge)** charge)*

• he Rs. 15/- D.P. charges as shown above are flat per transaction per scrip per day
irrespective of the volume of shares traded.
• The Rs. 15/- assistance charges are also flat irrespective of the volume of shares
traded out of which Rs. 10/- is the commission the franchisee receives for the
services offered by him and Rs. 5/- is what Reliance Money gets.

Additional Demat A/C details

• Tie up with banks such as HDFC, IDBI, Axis Bank and ICICI Bank

• Intraday margin – 5 times same day square off

• Delivery completely cash based

49
 Religare Enterprises Limited

• The Company was incorporated as “Vajreshwari Cosmetics Private Limited” on

January 30, 1984. The name Religare Enterprises Private Limited was kept on
January 10, 2006

• A/c opening charges

o Trading: Nil
o Demat:Rs.500

• Demat A/c types

o Bandhan :Rs.2100 one time and life time A.M.C. free
o Rally-pro: Normal A/c having opening charge of Rs.500 and A.M.C.
Rs.250
o Rally-lite:Broser based A/c available online
• Brokerage:
o Intraday-5 paise
o Delivery based-50 paise
o F&O-10 paise
o Trading in Z group shares is not allowed.
o B.T.S.T. facility is available.
o A.M.C.:Rs.250
o D.P.: N.S.D.L. and C.D.S.L.
o Slip charges Rs.20

50
 Kotak Securities Limited

• Trading A/c Opening charges-Rs.30

• Brokerage:
• On Sales-0.4
• No charge on purchase
• Slip charges-Rs.25
• Online monitoring of demat A/c available
• Sms facility available
• Basically 2 departments:
• Back office: Demat A/c, Accounting Operations and Risk Management
• Front office: Sales and Dealers
• Trading Exposure:7 times

• I.T. and man-power are goodwill for the fir

51
 Angel Broking Limited

• Established: about 10 yrs. Back

• Branches: about 80+
• Trading in Equities, Commodities and Mutual Funds
• Security deposit Rs.100000 based on risk as per no. of clients(i.e. as the no. of
clients increase the amount of deposit increases)
• B.T.S.T. facility allowed
• Brokerage:
• Delivery: 50 paise/100rs. Buying &
• Intraday: 5 paise/100rs. Selling
• F&O: 10 paise/100rs.—1 time charge
o B.T.S.T. facility is allowed
o Banking: H.D.F.C.,U.T.I., Citibank
o D.P.-C.D.S.L.
o Trading in Z group shares not allowed.
o Franchisee is treated as remissor upto the time of getting sub-brokership
registration
o Delivery Instruction Slip charges: Rs.10/slip
o Brokerage % sharing with franchisee is 50:50 on brokerage
uptoRs.100000 and than 65:35 or even higher based on brokerage earned
by franchisee.

• Trading A/c opening charges Rs.100

• Demat A/c opening charges A.M.C.:Rs.300 Total
• Stamp duty: Rs.100 Rs.500 (+service tax)

52
• Auto pay-in: Rs.100

• Inter Depository share transfer charges:

• Rs.15 for value of securities up to Rs.100000
• 0.2% increase on securities having value higher than Rs.100000
• Online back-office available and online trading available for which
sub-brokers are generally charged but clients are not charged.
• Connectivity:
• Normally -VSAT
• For higher volume –Lease line
• For lower volume- Internet Broadband
• S.m.s. facility and information available
• Trade Exposure: 5-10 times for Intraday and 3 times for delivery
based trading.

India Bulls Limited

• A/c opening charge: Rs.900
• Brokerage:
• Delivery:25 paisa
• Intraday:5 paisa
• F&O: 3 paisa
• Trading Exposure:
o Intraday: 20 times
o Delivery: 4 times
• Why go for India bulls?
o Off-line trading A/c they make immediate call to clients when clients miss
call for putting trading limit

53
 o Whenever the share prices fluctuate in the market creating a favorable
situation for buyers for buying or selling a particular script, the clients are
immediately informed about the same in order to take advantage of the
favourable situation

o There is no organizational hierarchy in the firm and all the employees at

the branch are relationship managers who have to directly report to the
vice president of the co. The purpose behind this is to make direct
interface between clients and employees possible

India Infoline Limited

• A/c opening charges: Rs.555
• Initial trade margin for clients:Rs.5000
• Banking: ICICI,UTI, HDFC, Corporation Bank
• Brokerage:
• Offline-A/c
o 0.1% Intraday
o 0.5% delivery
• Online-A/c
o 0.05%
o 0.25%
• Extra Charges Applicable for NBFC (Special funded A/c are 250/yr.)
 U.S.P.:
o Special NBFC A/c which provide funding on the trade investment made
upto75% on the investments made by the client

54
• Online Banking facility available

Share khan

• Share khan is a very actively expanding out retail distribution network to reach
out investors nationwide.
• Why go for share khan?
• Online terminal and internet trading
• Speed and flexibility
• Technology and marketing
• Research and equity sales support
• Marketing and branding
• Technology support and training
• Infrastructure:
• Minimum 500 sq.ft of office space
• Connectivity: C.T.C.L & VSAT
• Prosper infrastructure: La test P.C., U.P.S.
• Least 2 certified and trained dealer
• Least 5 sales exécutives
• Operations :
• Billing- Centralized billing system where the end client will receive contract of
share khan

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  Certification: for D.P., Cash and F&O and commodity operation at
your location you will have to produce the requisite NCFM
certification as per the guideline of the regulator
• Brokerage:
o Initial-50:50 Offline and
Online
o At a gross brokerage of Rs.300000 per month-45:55 (Cash and
o At a gross brokerage of Rs.500000 per month-40:60 Derivative )
o Commodity-50:50

• Trade margin:
o Cash Market:Rs.250000
o Derivative Market:Rs.100000
o Power Broker:Rs.50000
o Commodities Market:Rs.100000

Anagram

• NSE and F&O same id is provided and can be operated through one computer
• Separate Id and computer required for BSE
• Connectivity: Broad band, Lease line
• 10,000*2 DD pay at Bombay on name of SEBI (5year*2000=sub-broker fees)
• NSE and F&O (NCFM certificate required)
• For Online network charges are Rs.10, 000 to be paid in two installments.
• Documents required to start franchisee:
o Pan card
o Id and residential proof
o Office address proof

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 o Bank reference letter
o CA reference letter or net worth certificate with CA’s seal
 Brokerage:
o 0.02 to 0.05 brokerage on trading
o 0.20 to 0.50 brokerage on delivery

• Registration done from exchange and the registration no. received from it.
• Personal attention in terms of training provided.
• Back office provided by main firm and available on net.
• No security deposit in the beginning if the firm is new, later main branch can
charge as per the revenue generated by the firm.

HDFC Securities Limited

• Demat and trading 2 in 1 online
• Charges 799(one time charges)
• Demat and trading offline charges:499
• A.M.C. for demat a/c Rs.500+service tax
• Minimum balance in saving a/c Rs.5000
• Documents: pan card, light bill, telephone bill, 2 photograph
• The minimum value of order that will be accepted is Rs.1000

Brokerage(Cash Delivery Trades Square off Trades

Segment)
When the market price of 0.5% of transaction value
the scrip is above Rs.10 or Rs.15 per order
whichever
is higher
Where the market price of Brokerage@Rs.0.05 per
the scrip is below Rs.10 share or Rs.15 per order
0.15% of transaction
value or Rs15 per order
whichever is higher
Brokerage@Rs.0.05 per
share or Rs.15 per order

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 or actual brokerage slab or actual brokerage slab
i.e. 0.5% whichever is i.e. 0.15% whichever is
higher higher

• A/c opening charge for N.R.I. is Rs.1200 and minimum brokerage per trade is
Rs.100
• Share demat charges Rs.3 per certificate
• D.P.:NSDL

ICICI Securities Ltd.

ICICI Web Trade Limited (IWTL) maintains www.icicidirect.com (hereinafter
referred to as the "Website") and owns, has the license to use or otherwise has the
right to use, free of any pending or threatened liens, all content, graphics, HTML and
CGI or other scripts displayed and used on the Website. Whereas IWTL is an
Affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank Limited.

This site gives the facility of 3-in-1 accounts. I.e. the 3-in-1 account integrates your
banking, broking and demat accounts. This enables you to trade in shares without
going through the hassles of tracking settlement cycles, writing cheques and Transfer
Instructions, chasing your broker for cheques or Transfer Instructions etc.

• Brokerage:

o Intraday- 5paisa

o Delivery- 75paisa

• Demat a/c + trading a/c- Rs.750

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 Comparative Chart

PRODUCTS & SERVICES OFFERED BY DIFFERENT BROKERS

Product Equity & IPOs Commodit Credit Cards Loans LI & PMS &
s Derivative & y & Gold Coins GI other
Equity Offered s MFs benefits
Houses

India Infoline Yes Yes Yes No No Yes Yes

Religare Yes Yes Yes No No Yes Yes

Reliance Money Yes Yes Yes Yes Yes Yes Yes

Angel Broking Yes Yes Yes No No Yes Yes

ICICI Direct Yes Yes Yes Yes Yes Yes Yes

Kotak Secu. Yes Yes Yes Yes Yes Yes Yes

HDFC Secu. Yes Yes Yes Yes Yes Yes Yes

Anagram Yes Yes Yes No No Yes Yes

Sharekhan Yes Yes Yes No No Yes Yes

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Indiabulls Yes Yes Yes No Yes Yes Yes

Interpretation:

All the broking houses offer almost all types of main products and services. They are
providing ‘Portfolio Management Services’ and other value-added benefits along with
their basic offerings so that to cater more and more customers. Other than banks like
ICICI, HDFC etc., Reliance Money is the only broker which provides credit cards and
gold coins to the customers. It is also a distribution house where you can find products or
services of various companies. Its concept is simple, “All under one roof.” Now, it is
going to offer ‘commodities’ also as one of its products as there is enough potential in the
same.

In today’s scenario, each and every major broking house is trying to include almost all
the products in its umbrella so that their customers have not to go at different places for
their different financial needs.

BROKERAGE, AMC & OTHER CHARGES LEVIED BY DIFFERENT

BROKERS

Charges Account Opening AMC Brokerage Tie-up with

(Demat + trading) ( Intra-day Delivery Major banks
Equity (Rs.) Rs.) (Paisa) (Paisa)
Houses

India Infoline 555 Nil 04 40 Icici, Hdfc,

Axis
Religare 500 Nil 03 30 Icici, Hdfc,
Bob, Axis,
Abn, Sbi
Reliance Money 750 50 01 (online) 01 (online) Icici, Hdfc,
(500 for & Rs. 15 & Rs. 15 Axis & Idbi
corporate) (offline) per (offline) per
trade trade
Angel Broking 772 300 03 30 Icici, Hdfc,
Axis

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ICICI Direct 750 500 05 75 Icici
Kotak Secu. 750 250 04 40 Kotak
HDFC Secu. 799 500 04 40 Hdfc
Anagram 550 200 05-10 50 Hdfc, Icici
Sharekhan Nil 275 10 50
Indiabulls 900 Nil 03 30 Icici, Hdfc,
Axis

Interpretation

The charges for account opening and AMC are different at different broking houses but
those who are keeping these very low or nil, are collecting the same in form of brokerage.
Except reliance, all are charging brokerage on volume, which varies from 03 to 10 paisa
(intra-day) and 30 to 70 paisa (delivery). But, the brokerage structure is flexible at most
of the places. Reliance money is charging only 01 paisa per trade (online), regardless of
volume which is very beneficial for big clients. It has introduced ‘Voucher system’ for
brokerage on account of its aggressive launching. ICICI Direct is very costly in terms of
brokerage yet it is at no. 1 position among online brokers. The reason behind this is its
dedicated customer service.

In today’s scenario, all the broking houses are trying to associate with major banks for the
requirement of demat account. This benefits to both, the banks as well as the brokers. The
banks are getting new products to offer and the brokers are getting huge customer base of
banks. The popular banks in this category are ICICI, HDFC, Axis, Sbi etc. The broking
houses like ICICI Direct, Kotak Secu. and HDFC Secu. are in association with single
bank only i.e. ICICI Bank, Kotak Bank and HDFC Bank respectively, because of same
group.

VALUE ADDED FACILITIES PROVIDED BY DIFFERENT

BROKERS

Extra Benefits or BTST or Credit Off Loans

facilities discounts ATST facility market for trading
Equity on high- trading in IPOs
Houses volume

India Infoline Yes Not right Yes Yes Yes

now
Religare Yes Yes Yes Yes Yes
Reliance Money Yes Yes No Yes Yes

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 Angel Broking Yes Yes Yes Yes No
ICICI Direct Yes Yes No Yes No
Kotak Secu. Yes Yes No Yes Yes
HDFC Secu. Yes Yes Yes Yes Yes
Anagram Yes Yes Yes No Yes
Sharekhan Yes Yes Yes Yes Yes
Indiabulls Yes Yes Yes Yes Yes

Interpretation

Any benefits or discounts in case of high volume traders

In today’s scenario, it is very necessary to provide additional benefits or special discounts

to high volume traders or HNIs because it is very important to retain the same as they are
the source of big revenues.

BTST/ ATST facility

BTST or ATST stands for Buy Today, Sell Tomorrow or Acquire Today, Sell Tomorrow.
This facility has started few months back as an additional product to attract customers. In
this, one can buy shares during the trading hours and then sell the same next morning
when market gets open.

Delivery cash based or credit facility provided

Most of the brokers provide the facility of credit to its customers for few days and later
on interest but this generates an additional head-ache of collecting payment. Now, the
trend has somewhat changed as players like ICICI and Reliance are providing completely
cash-based trading. Sebi is also in favour of the same as there is always a risk of
defaulters in case of credit-based trading.

Provision of off market trading

Almost all the brokers are providing this type of facility for the people who wants to fill
more than one IPO application, legally. So again, this is an additional benefit given to
attract the customers.

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Provision of loans for IPO trading

This is again a service for customers who want to invest in IPOs but are not having the
enough capital. So, the brokers are providing the facility of loan for the same. But very
few are considering it as a risk in this ‘Bearish scenario.’

Limitations

• As we all know, security market is highly volatile. We may predict about it more
accurate but due to uncertain driving forces the predictions may not work.
• The market risks and uncertainties are always there.
• Long term future of any market has impact of govt. policies and decisions.
• Indian economy is highly dependent on monsoon, so despite of all the
precautions, projected growth rate can’t be maintained.

FINDINGS AND SUGGESTIONS

From the one and half month experience of my research project with “RELIANCE
MONEY LIMITED.” I have come to know a lot of things and it has enhanced my
knowledge to a great extent. But from my point of view I found some things which are
really needed to be taken into consideration. Some of recommendations and suggestions
given by me are purely based on my study at the Reliance Money Limited. It doesn’t
have any kind of bias on my side. They are given as under:

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• The things I would like to comment on especially are the very low advertising and
marketing initiatives by Reliance Money Limited.

• The some customers who are current working with Reliance Money Limited now and
then complain about the services provided by the branch.

• The things such as the company not give you credit for purchasing a share
therefore some of the customer not happy with this services.

• The other thing that if and only if you deposit some amount then and then only you
will be allowed to trade. So the customers who play very high jacks on intraday basis
sometimes would not recommend this.

• And the thing that it is compulsory original pan card copy to open a Demat Account
and the Trading account with Reliance Money Limited. Without you can not open
any one of them.

CONCLUSION

The research conducted by me is summarized as under:

From the research, it could be concluded that Reliance Money Limited in all ways as
compared with the other stock broking houses has a good scope in the Ahmedabad city.
But since it has just finished 1 years of inception in Ahmedabad, it has gained much
popularity in comparison of Angel, India bulls, Indiainfoline, Religare etc.

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Reliance Money Limited in always is good, just that it needs to provide more and better
services and fast services to the customers.

In Ahmedabad city the name Reliance Money Limited needs to be emphasized on, while
marketing & selling the product. The market is 100% fully aware that what Reliance
Money Limited.

It could come up with products which cater to all segments of the society after a little cost
cutting, than fixing up a standard service for all its customers, whose needs vary
diversely.

BIBLIOGRAPHY

BOOKS AND MAGAZINES:

• Business research Method – cooper & schindler Tata McGraw Hill
• Reliance Money broachers and registration kit
• Financial Management – P. Chandra (2001) Tata McGraw Hill

Websites:
• www.nseindia.com
• www.bseindia.com
• www.reliancemoney.com
• www.investopedia.com

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