RELIGARE SECURITIES LIMITED

PERCEPTION OF INVESTOR TOWARDS COMMODITY

MARKET
PANKAJ BHARDWAJ
PGDM-3rd SEMESTER
09/DSPR/DLI/PGDM/FT/
 RESEARCH OJECTIVE
• OBJECTIVE OF THE STUDY


 Primary Objective
 Understand the Perception of Investors towards
Commodity market.

Secondary Objective
 1. To understand the commodity Market.
 2. To know the Satisfaction Level of the investors.



 RESEARCH METHODLOGY
• RESEARCH DESIGN
 The study is descriptive in nature and based on
survey technique to find out facts and affairs in the
commodity market. The methodology adopted
includes:
 Structured questionnaire
 Discussions with the concerned by personal
interview
 Discussions with Branch Manager and Dealer
• SOURCE OF DATA

Primary data collection, the questionnaire and
personal interview are used in collecting the data..
 Secondary data collection, different journals,
magazines and internet sites are used in collecting the
data relating to the commodity market and future
trading.
 CONTD…..
• SAMPLING PLAN:
 POPULATION: (Universe) customers of Religare
Enterprise Ltd.
 SAMPLING SIZE: A sample of 80 has been chosen
for the purpose of the study. Sample consists of small
investors, large investors and traders of RCL.
 SAMPLING METHODS: Since Religare Enterprise
Ltd has many segments, 100% coverage is difficult
within the limited period of time. Probability sampling
requires complete knowledge about all sampling units
in the universe. Hence convenience sampling under
non-probability sampling has been chosen for the
study
 FIELD STUDY: The data has been collected with the
help of questionnaire directly from the respondents
like businessmen, small shopkeepers, commodities
 COMPNAY PROFILE

• Religare is a financial services company in India,

offering a wide range of financial products and
services targeted at retail investors, high net
worth individuals and corporate and
institutional clients. Religare is promoted by the
promoters of Ranbaxy Laboratories Limited.


• Religare financial services group comprises of

Religare Securities Limited, Religare Comdex
Limited and Religare FinvestLimited, which
provide services in equity, commodity and
financial services businesses.
•
 CONTD………

• Company’s Vision –
 “To build Religare as a globally trusted brand in
the financial services domain and present it as
the ‘Investment Gateway of India”.
• Company’s Mission –
 “Providing complete financial care driven by the
core values of diligence and transparency”.
• Brand Essence –
 “Core brand essence is Diligence and Religare is
driven by ethical and dynamic processes for
wealth creation”.
•
 RELIGARE SECURITIES LIMITED

  Religare Securities Ltd. ("RSL"), a wholly



owned subsidiary of Religare Enterprises Limited

(REL), a global financial services group is a
market leading securities firm in India. The
company offers equity broking services to more
than half a million clients using both, offline and
online platforms and also offers, depository
participant services. RSL is a member of the NSE,
BSE, and a depository participant with NSDL and
CDSL. RSL employs more than 4300 employees
(as on December 31, 2009) and has a wide
distribution reach that spans across more than
1800 locations in India.
•
 RELIGARE COMDEX LIMITED

• RELIGARE COMDEX LIMITED

 Registered with the Forward Market Commission
(FMC) as a commodity broker. Member of National
Commodities and Derivative Exchange (NCDEX),
Multi Commodity Exchange (MCX) and National
Multi Commodity Exchange of India Limited
(NMCE).

 CH-3
LITERATURE REVIEW
 “We are moving from a world in which the big eat
the small to one in which the fast eat the slow”.
-Klaus Schwab, 2000
 (Founder of the World
Economic Forum)
“A strong and vibrant cash market is a pre-
condition for a successful and transparent
futures market.”
 


• COMMODITY
 The commodity market in India comprises of all
probable markets that we come across in our daily
lives. Such markets are social institutions that
facilitate exchange of goods for money. The cost of
goods is estimated in terms of domestic currency.
India commodity market can be subdivided into the
following two categories:
 Wholesale Market
 CONTD……
• A commodity may be defined as an article, a product
or material that is bought and sold. It can be
classified as every kind of movable property, except
Actionable Claims, Money & Securities.
•
• COMMODITY MARKET

Commodity markets are markets where raw or
primary products are exchanged. These raw
commodities are traded on regulated commodities
exchanges, in which they are bought and sold in
standardized contracts.

It covers physical product (food, metals and
electricity) market

Commodity market is an important constituent of the
financial markets of any country. It is the market
where a wide range of products, viz., precious metals,
base metals, crude oil, energy and soft commodities
STRUCTURE OF COMMODITY MARKET
DIFFERENT TYPES OF COMMODITIES
TRADED
 FACTORS AFFECTING
COMMODITY MARKET
 LEADING COMMODITY MARKET

COMMODITY MARKET IN INDIA



1. MULTI COMMODITY EXCHANGE (MCX), MUMBAI  

2.NATIONAL COMMODITY AND DERIVATIVE

EXCHANGE LTD (NCDEX), MUMBAI 

3. NATIONAL BOARD OF TRADE (NBOT), INDORE

4.NATIONAL MULTI COMMODITY EXCHANGE (NMCE),

AHMEDABAD
•
 HOW COMMODITY MARKET

WORKS ?
The commodity trading system consists of certain
prescribed steps or stages as follows:
Ø TRADING
Ø CLEARING
Ø SETTLEMENT
 DERIVATIVE AND FUTURES TRADING IN
COMMODITY MARKET
 COMMODITY DERIVATIVES
 1.OPTION – Right without obligation to exercise the
contract.
 2. FUTURE – Right with obligation to exercise the
contract.
 DERIVATIVE MARKET
 The financial market for derivatives is known as the
derivative market. The derivative market has two parts:
 1. EXCHANGE TRADE DERIVATIVES
 2. OVER- THE- COUNTER DERIVATIVES

 COMMODITY FUTURES TRADING IN
INDIA
• The trading system on the NCDEX, provides a fully
automated screen-based trading for futures on
commodities on a nationwide basis as well as an online
monitoring and surveillance mechanism. It supports an
order driven market and provides complete transparency
of trading operations. The trade timings on the NCDEX
are 10.00 a.m. to 4.00 p.m.
COMMODITY SYMBOLS
•1. COMMODITY
Pure Gold Mumbai FUTURES CONTRACT AND THEIR
GLDPURMUM
SYMBOLS
2. Pure Silver New Delhi SLVPURDEL


3. Soybean Indore SYBEANIDR

4. Refined Soya Oil Indore SYOREFTDR
5. Rapeseed Mustard Seed Japura RMSEEDJPR
6. Expeller Rapeseed Mustard Oil Japura RMOEXPJPR
7. RBD Palm Olean Kakinada RBDPLNKAK
8. Crude Palm Oil Kindle CRDPOLKDL
9. J34 Medium Staple Cotton Bhatinda COTJ34BTD
10. S06 L S Cotton Ahmadabad COTS06ABD
 LIMITATION OF THS STUDY
• Sample might not be the true representative of the
population because sample size is very small and
taken in a very limited region by using the
convenience sampling.
• People were reluctant in disclosing the details of their
investment distribution.
• There might be chances of biasness.
• To understand the overall working of share market, the
period of 60 days is not enough.
• Moreover, very few investor and agents have a detail
knowledge of the study.
• The study was conducted in Delhi and NCR only

 DATA ANALYSIS
Q1. Investment in equity and commodity


Market


• Inference: The survey is conducted to know the satisfaction

of customer’s and the question is asked to know the
respondents who deal with RCL. Here majority of investors
are of Equity market, almost one-sixth invest in only
commodity and another one-fourth in both. Basically the
survey is conducted only those respondents who belong to
Religare Enterprise.
 CONTD…….

 Q2. Different types of investors  Q3. Most Important Factor to be

with RCL considered while investing
money

 CONTD…..

 Q4. customer trades in  Q5. Customers’

commodity market satisfaction with
 trading facility provided
by the RCL

 CONTD……
 Q6.The problems faced by the respondents in the RCL

 CONTD….
 Q7. Which commodity to buy in the current economic
situation ?

 FINDINGS
• The investors are satisfied with the services provided by
Religare Commodities Limited i.e. margin money facility,
proper advises about investing etc. in dealing with the
Religare. Holding securities in electronic form gives some
far-reaching advantages to the investors.
• Religare Enterprises Ltd offers a wide choice of products for
investing in the stock market & commodities market. It
allows investing in shares, mutual funds and other
financial products. With RCL one can manage own de-mat &
trading account independently.
• The Religare Commodities Limited is providing trading facility
with registered commodities exchanges like NCDEX, MCX,
NBOT and NMCE. Any investor can trade with these
exchanges by opening their account with RCL.
• Religare Commodities Limited provides the facility of online
trading.
• Transaction details for the traders are available online.
• Survey reveals that most of the customers are ready to the
give reference of other potentials customer.
• Customers in the commodity market can trade with the
margin money i.e30%-40% of total money required.
 SUGGESTION
• The company should provide demo of online commodities
tradingin the office to the customers of Religare
Enterprise Ltd to make aware about how to trade in the
commodity market to increase the market share of the
company.
• Normal tendency of the customer is to prefer equity as
compared to commodities. So Religare Commodities Ltd
should create the ‘sessions of trading’ online for the
customers related to the commodity derivative trading in
which a customer will see the benefit as well as the risk
involved with this which help in generating the trust for
commodity market.
• Customers are facing overcrowding, non-availability of
telephone lines, so the firm should increase the
telephone lines and recruit the new employees to make
smooth functioning.
• The RCL official should conduct regular seminars on
commodities trading to attract the investors who invest
in the equity market at Religare Enterprise Limited.
 CONCLUSION
• Commodities market, contrary to the beliefs of many people,
has been in existence in India through the ages and still has
to go a long way ahead. Perceptions of investors towards
commodity trading might change quite a lot with time.
• The project reveals that commodity market works in future and
derivative in which investors invest money through the
contracts given i.e2 months contacts, 3 months contracts
which expires last Thursday of every month.
• The future market also provide the benefits for the traders who
want investment but they don’t have enough money at
particular time they can invest with margin money in
commodities and pay later to earn profits.
• The project explains about satisfaction of the customers who
are trading with the Religare Commodities Limited on the
services provided by the RCL which is essential to smooth
functioning of the trading. The firm is able to satisfy their
customers by providing quality services and earning the
higher profits in the market.
• At last, it can be concluded that most of the customers are
satisfied with services provided by the Religare
Commodities Limited and they are ready to give advice of
potential customers.
 BIBLIOGRAPHY
• http://www.religare.in/About_us.asp
• http://www.religare.in/vision.asp
• http://www.religare.in/commodities_trading.asp
• http://www.religarecommodities.com/product_rally.asp
• http
://www.hinduonnet.com/businessline/iw/2000/09/03/s
• http://www.chittorgarh.com/newportal/online-stock-brok
