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A COMPREHENSIVE PROJECT REPORT
ON“financial cost to consumers for online share trading with context to Religare &other players”
IN
( A RANBAXY Promoter Group Company)
SUBMITTED BY:
MITAL G. KAPLETIYA.
ACADEMIC YEAR: M.B.A – SEM IV 2008 – 09
ROLL NO : 14
COLLEGE : SHREE LEUVA PATEL TRUST MBA COLLEAGE, AMRELI.
PROJECT GUIDE:Dr. VISHAL PATIDAR.
STUDENTS DECLARATION
I, the under signed Miss Mital G. Kapletiya, here by declare and confirm that
work done by me is original and true to the best of my knowledge and belief. It is the
result of my efforts and dedication. Moreover, it has been approved by the
management of RELIGARE SECURITIES LTD and does not contain any material
objectionable to them. This project is just a part of my college curriculum and will not
be used elsewhere.
Date: Signature
(Mital G. Kapletiya)
3
GUIDE’S CERTIFICATE
This is to certify that Miss Mital G. Kapletiya the student of MBA has carried out the project work as per the syllabus of Saurashtra University. She prepared this Grand Project Report on “RELIGARE SECURITIES LTD” at SURAT Branch, under my guidance and her contribution in making this report during the academic year 2007-2009 is highly appreciated.
To the best of my knowledge the details presented by her are original in nature and have not been copied from any other source. Also this report has not been submitted earlier for the award of any degree or Diploma in Saurashtra University or any other University.
Date: Signature
Place: Amreli (Dr.Vishal Patidar)
SHREE AMRELI JILLA LEUVA PATEL CHARITABLE TRUST-SURATPLACE:- SMT SHANTABEN HARIBHAI GAJERA SHAIKSHANIK SANKUL
Chakkargadh Road, Amreli-365601
4
PRINCIPAL’S RECOMMENDATION
To,The Registrar,Saurashtra University,Rajkot.
Subject: MBA Grand Project Report
Respected Sir,
I am recommending the Grand Project Report entitled “RELIGARE SECURITIES LTD” prepared by MITAL G. KAPLETIYA at Surat as the partial fulfillment of the University requirement for the award of MBA degree of Saurashtra University, Rajkot.
Thanking You,Date:-
Yours FaithfullyPlace:- Amreli
(Principal) (Dr. Vishal Patidar)
SHREE AMRELI JILLA LEUVA PATEL CHARITABLE TRUST-SURAT PLACE:- SMT SHANTABEN HARIBHAI GAJERASHAIKSHANIK SANKUL
5
Chakkargadh Road, Amreli-365601
DIRECTOR’S RECOMMENDATION
ToThe RegistrarSaurashtra UniversityRajkot
Subject: MBA Summer Training Project Report
Respected Sir,
I am recommending the Grand Project Report entitled “ RELIGARE SECURITIES LTD” prepared by MITAL G. KAPLETIYA at SURAT, as the partial fulfillment of the University requirement for the award of MBA degree of Saurashtra University, Rajkot.
Thanking You,Date:-
Yours FaithfullyPlace: - Amreli (Director)
6
ACKNOWLEDGEMENT
During the Training it is unforgettable experience for me in RELIGARE. I don’t have
adequate words to express my profound gratitude to project report in charge MR.
NISHANT KHIMANI, who gives me a good opportunity in the RELIGARE securities
ltd. This is a very famous Trading Company. So I heartily thank to my project guide, My
Director and all my faculties who gives good guidance to me, without their guidance for
me difficult to make project report nicely.
My acknowledgement would not be complete if I don’t express my deepest sense of
gratitude towards MR. NAIMISH PATEL and all executives without whose interest my
summer project would not seen in the light of Day.
Finally I thank to all my guides and my friends who helps me in my project directly or
indirectly.
DATE : MITAL G. KAPLETIYA.
PLACE : Surat
7
PREFACE
MBA is a professional course wherein for a student to posses only theoretical knowledge
alone is not enough but also to improve practical skill which is helpful to them in every
field of life in their future. Students need to have a practical implementation in the current
scenario.
I felt that this unit is being run superbly by excellent management teams and employee
co-operation. It is my pleasure to present work after I had finished my training at
RELIGARE. This training has expanded my horizon of knowledge in practical as well
as theoretical which are vital for any student in management level studies. After
completion of this training I come to know that when we study theory but practice it is
very difficult to understand. Therefore to serve dual purpose of practical training has been
made compulsory for the student of MBA.
Such training promotes a student to boost his potentials and the inner qualities, and
thereby students come to know about their reality that how the theoretical knowledge
works in actual sense in any unit. This has indeed proved to be very useful to me.
All information furnished here are correct and true according to me, and sincerely apologize if incorrect data.
8
INDEX 1.INDUSRY OVERVIEW
What is stock……………………………………………10 rules of investing…………………………………….BSE……………………………………………………..NSE……………………………………………………..Security market…………………………………………Online trading…………………………………..............Why prefer online trading……………………………....Players………………………………………………….How Religare postion…………………………………..Industry Analysis………………………………………Adv of online sh trading……………………………….Psychology of stock market participant……………….
2.Company overviewAbout Religare…………………Introduction………………………………Group companies………………………
Religare products…………………………Features of the products…………………………
3.Reaserch Methodology Objective of reaserch
Reaserch design Data collection Sampling design Data Analysis Limitation of the study……………………… Strenth of Religare…………………………… Gape filling suggestions………………………. Questionaire……………………………………
9
What is stock ?
Imagine that you own a business. If you were to divide that business up in two
small pieces and sell those pieces, you would essentially have issued stock.Quite simply,
stock is ownership in a company . The money you raise from selling those “pieces “ of
business can be used to build new plants and facalities, pay down debt, or acquire another
company. A smart owner will keep at least 51% of the stock, which will allow them to
retain control of the day to day activities. Any person or institution that owns over
majorities of the stock is called the “controlling shareholder”.Essentially, this person can
do anything they want right down to firing the CEO.
In financial market , stock is the capital raised by an organization through the
issuance and distribution of shares.A person or organization which holds shares of stocks
is called a shareholder.Thecs aggragrate value of a company ‘s issued shares is its market
capitalization.
Stock is simply apportion of a company . By owing stock, You are a shareholder.
Stocks are bought and sold on stock exchanges, such as the BSE & NSE.
Usually stock is issued to raise money for a variety of
reasons:expansion ,developing new products ,to pay off debt and acquiring other
companies.When a company issues stock for the first time, it is called an initial public
offerings or IPO.An IPO is underwritten by an investment banker that decides what the
stock is worth and when it is best to issue it.
Volatility is when a stock price goes up or down. Usually, stock prices rise and
fall with supply and demand. Nonetheless, there are other reasons for stock prices to
fluctuate.The price will rise when every one wants the stock and is buying it, however
mass sales will also drive a price in the negative direction. Price will drop when a
particular industry takes a fall, when the economy has a general downturn, when the
company management is falling, or when there is too much debt. Professional analysts
and investment bankers who issue buy/sell hold ratings also affect the price.
11
How does one buy stock ?
Buying stocks is not as simple as walking into a stockbrokers’s office and buying
shares like one would a pair of shoes from a store. One are required to open an account
with the brokerage, like opening an account at a bank.
Some brokers will allow one to open an account with very little money. The firm
will then hold this money in an interest earning cash account, waiting for orders to buy or
sell stock, or other securities such as bonds or mutual funds.When he buys or sell , you
pay a commission , which is deducted , from his account.When a stock is purchased , the
ownership of the shares may be listed in one of two ways.”Liste” means how the
corporation tracks the ownership of their stock.
If one chooses to have the stock listed in his name, he will receive the actual stock certificate .Most investors choose to have the ownership listed in the broker’s name, called “held in street name” , with the broker keeping track of whose trading account the stock actually belongs to. The benefits are reduced paperwork , consolidated portfolio statements , no concerns about storing and processing the paper certificates and the ability to instantly sell and transfer the shares.
Why do people invest in the stock market?
When you buy stock in a corporation, you own part of that company. This gives
you a vote at annual shareholder meetings, and a right to a share of future profits.
The corporation's board of directors choose when to declare a dividend and how much
to pay. Older and larger companies pay a regular dividend; most new and smaller companies
do not.
The average investor buys stock hoping that the stock's price will rise, so the shares
can be sold at a profit. This will happen if more investors want to buy stock in a company
than wish to sell. The potential of a small dividend check is of little concern.
What is usually responsible for increased interest in a company's stock is the
prospect of the company's sales and profits going up.
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Ten Golden Rules For Investing
Warren Buffet has suggested ten golden rules for investing which proves to be immense use to the investor who want a better investment in stock markets, Religare follows these rules which are described below :
1. Never invest in a business you cannot understand.
2. Risk can be reduced by concentrating on a few holdings.
3. Stop trying to predict the direction of stock market, the economy, interest rates, or elections.
4. Buy companies with strong histories of profitability and with dominant business franchisee.
5. Be fearful when others are greedy and greedy when others are fearful.
6. Unless you can watch your stock holding decline by 50 % without becoming panic-stricken, you should not be in the stock market.
7. Do not take yearly results too seriously. Instead, focus on four or five year averages.
8. Focus on return on equity, not earnings per share (EPS)
9. Calculate “owner earnings” to get a true reflection of value. Look for companies with high profit margins.
10. Always invest for the long term. Does the business have favourable long-term prospects ?
13
Why do people sell the stock ?
When you buy stock in a corporation , you own part of that company. This gives
you a vote at annual shareholder meetings, and a right to a share of future profits.
When a company pays out profits to the shareholders , the money received is
called a “dividend”. The corporation’s board of directors choose when to declare a
dividend and how much to pay.Older and larger companies pay a regular dividend ; most
new and smaller companies do not.
The average investor buys stock hoping that the stock’price will rise, so the shares
can be sold at a profit. This will happen if more investors want to buy stock in a stock in
a company than wish to sell.The potential of a small dividend check is of little concern.
What is usually responsible for increased interest in a company’s stock is the
prospect of the company’s sales and profits going up.
A company who is a leader in a hot industry will usually see its share price rise
dramatically.
Investors take the risk of the price falling because they hope to make more money
in the market than they can with safe investments such as bank CD’s government bonds.
What is stock market index ?
In the stock market world, you need a way to compare the movement of the market,
up and down, from day to day, and from year to year. An index is just a benchmark or
yardstick expressed as a number that makes it possible to do this comparison. For e.g. S&P
CNX Nifty is the index of NSE and SENSEX is the index of BSE.
Market Cap
As you become familiar with stock and mutual fund investing, you will encounter
the term "Cap", as in Small-Cap, Mid-Cap, and Large-Cap. Cap is short for capitalization.
As a stock market term, the capitalization of a company is calculated by multiplying
the total number of shares by the current price per share. If a company has 500 million shares
trading at $20 a share, its market cap is $10 billion (500,000,000 x $20). This is the total 14
value of the company's stock, the value that the world of stock market investors has
placed on the company (at least for today, investors are quick to change their minds).
. Today, we define a large-cap company as one whose stock is valued at over $10
billion (some still say over $5 billion), a mid-cap from $1 to $10 billion, a small-cap from
$250 million to $1 billion, and a company whose stock value is under $250 million as a
micro-cap. Depending on whom you listen to or how old your reference book is,
these definitions will vary.
A related point - don't think a company is big just because it has a high stock
price, or that it is small just because its stock price is low.
For example, Disney trading at $23 is not smaller than Barnes & Noble trading
at $33, since Disney has 2,048,690,000 shares outstanding (called the "float") and
B&N has just 68,585,000 shares. That's a $4.7 billion market cap for Disney versus
only $226 million for Barnes & Noble.
Supply and Demand
A stock's price movement up and down until the end of the trading day is strictly a
result of supply and demand.
The SUPPLY is the number of shares offered for sale at anyone one moment.
The DEMAND is the number of shares investors wish to buy at exactly that same time.
What a share of a company is worth on anyone day or at any one minute, is determined by all
investors voting with their money.
If investors want a stock and are willing to pay more, the price will go up.
If investors are selling a stock and there aren't enough buyers, the price will go down.
Period.
15
What is stock exchange ?
Stock exchange is known as the stock market or brouse , a stock exchange is an
organized market place for securities (like stocks , bonds , options) featured by the
centralization of supply and demand for the transaction of orders by member brokers , for
institutional and individual investors. The exchanges makes buying and selling easy.
For example , you don’t have to actually go to a stock exchanges , say BSE- you
can contact a broker , who does business with the BSE and he or she will buy or sell
your stock on your behalf.
All stock exchanges perform similar functions with respect to the listing , trading
and clearing of securities , differing only in their administrative machinery for handling
these functions. Most stock exchanges are auction markets , in which prices are
determined by competitive bidding. Trading may occur on a continuous auction basis ,
may involve brokers buying from and selling to dealers in certain types of stock , or it
may be conducted through specialists dealings in a particular stock.
Bombay stock exchange
The stock exchange of MUMBAI , popularly known as “BSE”was established in
1875 as “The Native Share and Stock Brokers Association.”It is the oldest one in Asia ,
even older than the Tokyo stock exchange ,which was established in 1878.It is the first
Stock Exchange in the Country to have obtained permanent recognisition in 1956 from
the Govt. of India under the Securities Contracts (Regulation) Act , 1956.
16
The Exchange , while providing an efficient and transparent market for trading
securities , debt and derivatives upholds the interests of the investors and ensures
redressal of their grievances whether against the companies or its own member brokers.It
also strives to educate and enlighten the investors by conducting investor education
programme and making available to them necessary informative inputs.
A Governing Board having 20 directors is the apex body, which decides the
policies and regular the affairs of the Exchange. The Governing Board consists of 9
elected directors, who are from the broking community ( one third of them retire every
year by rotation), three SEBI nominees, six public representatives and an Executive
Director & Chief Executive Officer and a Chief Operating Officer.
NATIONAL STOCK EXCHANGE
NSE was incorporated in 1992 and was given recognition as a stock exchange in June 1994 , with trading on the Whole sale Debt Market Segment Subsequently it launched the Capital Market Segment in November 1994 as a trading platform for equities and the Futures and Options Segment in June 2000 for various derivatives instruments
NSE was set up with the objectives of :
A. Establishing a nationwide trading facality for all types of securities;
B. Ensuring equal access to investors all over the country through an appropriate ;Communication network ;
C. Providing a fair , efficient and transparent securities market using electronic Trading system.
D. Enabling shorter settlement cycles and book entry settlements
E. Meeting international benchmarks and standards.
17
NSE has been able to take the stock market to the doorsteps of the
investors. The technology has been harnessed to deliever the services to the investors
across the country at the cheapest possible cost. It provides a nationwide screen based
, automated trading system , with a high degree of transparency and equal access to
investors irrespective of geographical location.The high level of information
dissemination through on line system has helped in integrating retail investors on a
nation wide basis.
The standards set by the exchange in terms of market practices, Products ,
technologies and services standards have become industry benchmarks and are being
replicated by other market participants. Within a very short span of time , NSE has
been able to achieve all the objectives for which it was set up. It has been able to
achieve all the obj for which it was set up.It has been playing a leading role as a
change agent in transforming the Indian Capital Markets to its present form.The
Indian Capital Markets are a far cry from what they used to be a decade ago in terms
of market are a far cry from what they used to be a decade ago in terms of market
practices , infrastructure , technology , risk management , clearing and settlement and
investor service.
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Benefits of listing on NSE
NSE provides a trading platform that extends across the length and breath of the
country. Investors from approximately 345 centres can avail of trading facalities
on the NSE trading network. Listing on NSE thus , enables issuers to reach and
services investors across the country.
NSE being the largest stock exchange in terms of trading volumes , the securities
trade at low impact cost and are highly liquidity. This is turn reduces the cost of
trading to the investors.
The trading system off NSE provides unparallel level of trade and post trade
information. The best 5 buy and sell orders are displayed on the trading system
and the total no. of securities available for buying and selling is also displayed.
This helps the investor to know the depth of the market Further , corporate
actions etc also available on the trading system , thus reducing scope for price
manipulation or misuse.
The facalities of making initial public offers , using NSE’s network and software ,
results in significant reduction in cost and time of issues.
NSE’s web site www.nseindia .com provides a link to the websites of the
companies that are listed on NSE, so that visitors interested in any company can
visit that co’s websites from the NSEsite.
Listed companies are provided with monthly trade statistics for the securities of
the company listed on the exchanges.
The listing fee is nominal.
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SECURITIES MARKET
The Securities Market consists of two segments, viz. Primary market and
Secondary market. Primary market is the place where issuers create and issue equity, debt
or hybrid instruments for subscription by the public; the Secondary market enables the
holders of securities to trade them.
Secondary market essentially comprises of stock exchanges, which provide
platform for purchase and sale of securities by investors. In India, apart from the
Regional Stock Exchanges established in different centers, there is exchange like the
National Stock
Exchange (NSE) and the Over the Counter Exchange of India (OTCEI), who
provide nation wide trading facilities with terminals all over the country. The trading
platform of stock exchanges is accessible only through brokers and trading of securities
is confined only to stock exchanges.
21
Thus, the securities market has two independent, inseparable segments, the new
issues (primary) market and the stock (secondary) market. The primary market provides
channel for sale of new securities while the secondary market deals in securities
previously issued. The issuer of securities sells the securities to the primary market to
raise funds for investment and/or to discharge some obligations. The secondary market
enables them who hold securities to adjust their holdings in response to change in their
assessment of risk and return. They also sell securities for cash to meet their liquidity
needs.
What is online share trading ?
Online trading is a service offered on the Internet for purchase and sale of shares .
In the real world , you place orders on your shareholders either verbally, or in a written
form .In the Online Trading , you will access a stock broker’s website through your
internet enabled PC and place orders through the brokers’s internet based order routing
and trading engine. These orders are routed to the Stock Exchange without manual
interventions and executed thereon , The order routing to the exchange will happen in a
matter of seconds. The order execution once it reaches the exchange system is similar to
that of an offline transaction.
Why to prefer Online trading Offline trading
Privacy :
The trader can trade on his own. He don’t need to go to the trader or tell him to
execute his orders. The third person may not know the amount or the script in which he is
trading.
22
Paperless transaction :
The online transaction is totally paperless work. Here the money is transferred
online as well as all DP bill is also online. So the work is totally paperless and simplified.
Ease in trasaction /no time transaction :
The taader can transact just with a click of mouse.He has terminal on his
computer so just with a click of a mouse he can trade.Also the time for execution is also
low.Just with a seconds time the transaction gets executed.
Availability:
Since the trading is done through Internet , the person can trade from anywhere in
the world.Also the Internet is easily accessible everywhere.
Any time accessible:
The internet is accessible anytime. So the person can trade anytime.Also after the
market hours , the trader can put his limit transaction so that in case he is not free to sit
on the computer , his transaction will be executed as per his wish.
Players in the Online Trading
Indiainfoline Securities
IL&FS
HDFC Securities
Kotak Securities
Sharekhan Securities
ICICI Direct.com
Angel Broking
23
Indiabulls Securities Limited
Religare Securities Limited
♦ INDIAINFOLINE
Unique E – broking service http://www.5paisa.com/ was launched for online trading
in mid-2000. Stock market investors in India have never had it so good – low
brokerage rates and some of the best research, thanks to internet technology and E –
broking. This is a unique model, which combines the rates of a discount brokerage
and service of a boutique house. It ensures independence and integrity as we do not
trade on our account, and all employees have to adhere to strict compliance
guidelines. Besides high quality investment advice from an experienced research
team, the site offers real time stock quotes, market news and multiple tools for
technical analysis. They have implemented world class security systems to prevent
any possibility of misuse, fraud or data pilferage. They have successfully emerged as
one of the leading providers of E – broking services in India.
5paisa is the trade name of India Infoline Securities Private Limited (5paisa), member
of National Stock Exchange and The Stock Exchange, Mumbai. 5paisa is a wholly
owned subsidiary of India Infoline Ltd, India’s leading and most popular finance and
investment portal. 5paisa has emerged as one of leading players in e-broking space in
India.
It offers two types of product: -
Investor Terminal (IT): - Investor Terminal is recommended for infrequent
investors, who fall into the "Buy and Hold" school of investing.
Trader Terminal (TT): -
Trader Terminal is for the dedicated day traders, who churn their portfolio on minor
movements in the market, sometimes several times a day.
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♦ IL&FS
IL&FS Investment Limited (IIL) is a premier financial service organization providing
individuals and corporate with customized financial management solutions. It works
towards understanding financial goals and helping to attain them. Its institutional
expertise, combined with a thorough understanding of the financial markets in
appropriate investment solutions. At IL&FS it recognize that one’s dreams, needs,
aspirations, concerns and resources are unique.
Divisions of IL&FS Investsmart Limited
The Investment Advisory and Broking Division
Merchant Banking Division
The Project Syndication Division
Institutional Equity Broking Division
Institutional Debt Broking Division
♦ HDFC SECURITIES
HDFC Securities is a brand brought to you by HDFC Securities Ltd., Which has been
promoted by the HDFC Bank & HDFC with the objective of providing the diverse
customer base of the HDFC Group and other investors a capability to transact in the
stock Exchanges & other financial market transactions.
HDFC Sec equipped with the necessary tools to allocate, select and manage your
investments wisely, and also support it with the highest standards of service,
convenience and hassle – free trading tools.
25
Its mission is to provide customers with the most useful investment guidance and
investment – related services available in the country. It wants to become a one-stop
solution for all investment needs.
The services comprise online buying and selling of equity shares on the National
Stock Exchange (NSE). Buying and selling of select corporate debt and government
securities on the NSE would be introduced in a subsequent phase.
♦ KOTAK SECURITIES
Kotak Securities Ltd., is India’s leading stock broking house with a market share of
around 8%. Kotak Securities Ltd., has been the largest in IPO distribution.
The accolades that Kotak Securities has been graces with include:
Prime Ranking Award (2003-04) – Largest Distributor of IPO’s
Finance Asia Award (2004) – India’s best Equity House
Finance Asia Award (2005) – Best Broker in India
Euromoney Award (2005) – Best Equities House in India
The company has a full – fledged research division involved in Macro Economic
Studies, Sectoral research and Company Specific Equity Research combined with s
strong and well networked sales force which helps deliver current and up to date
market information and news.
Kotak Securities Ltd is also a depository participant with National Securities
Depository Limited (NSDL) and Central Depository Services Limited (CSDL),
providing dual benefit services wherein the investors can use the brokerage services
of the company for executing the transactions and the depository services for settling
them.
26
Kotak Securities has 122 branches servicing more than 1,70,000 customers and
coverage of 187 cities. Kotaksecurities.com, the online division of kotak securities ltd
offers Internet Broking services and also online IPO and Mutual Fund Investments.
A Kotak security Ltd manages assets over 2500 crores of Assets under Management
(AUM). The portfolio Management Services provide top class service, catering to the
high end of the market. Portfolio Management from Kotak securities comes as an
answer to those who would like to grow exponentially on the crest of the stock
market, with the backing of an expert.
♦ SHAREKHAN
Sharekhan, India’s leading stock broker is the retail arm of SSKI (S S Kantilal
Ishwarlal) an organization with over eighty years of experience in the stock market.
Sharekhan offers depository services and trade execution facilities for equities,
derivatives and commodities backed with investment advice tempered by decades of
broking experience. Its team of dedicated analysts is constantly at work to track
performance and trends. Sharekhan runs India’s largest chain of share shops with
around 250 outlets in 113 cities.
♦ ICICI DIRECT.COM
ICICI Web Trade Limited (IWTL) maintains www.icicidirect.com (herein after
reffered 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 account integrates your banking, broking and
demat accounts. This enables you to trade in shares without going through the hassles
27
of tracking settlement cycles, writing cheques and Transfer instructions, chasing your
broker for cheques or Transfer Instructions etc.
ANGEL BROKING
The Angel group has emerged as one of the top 5 retail stock broking houses in India,
having memberships on BSE, NSE and the two leading commodity exchanges in the
country i.e. NCDEX and MCX. Angel Broking Ltd is also registered as a depository
participant with CDSL
The group is promoted by Mr. Dinesh Thakkar, who started this enterprise as a small
sub-broker in 1987 with staff strength of 3 personnel. As on date, the group is
managed by a team of 150 professionals & 700 support staff and a nation wide
network comprising 40 branches, over 2000 + sub brokers and business associates
and 6000 terminals which cater to the requirements of more than 1 lacs retail clients.
♦ INDIABULLS SECURITIES LTD
Indiabulls is India's leading retail financial services company with 77 locations spread
across 64 cities. While our size and strong balance sheet allow us to provide one with
varied products and services at very attractive prices, over 750 Client Relationship
Managers are dedicated to serving unique needs.
Indiabulls is lead by a highly regarded management team that has invested crores of
rupees into a world class Infrastructure that provides clients with real-time service &
24/7 access to all information and products. The flagship Indiabulls Professional
Network offers real-time prices, detailed data and news, intelligent analytics, and
electronic trading capabilities, right at one’s finger-tips. This powerful technology is
28
complemented by knowledgeable and customer focused Relationship Managers. ‘We
are Creating a world of Smart Investor’- This is what indiabulls is saying.
Indiabulls offers a full range of financial services and products ranging from Equities
to Insurance to enhance customer’s wealth and hence, achieve their financial goals.
RELIGARE SECURITIES LTD
Religare is driven by ethical and dynamic process for wealth creation. Based on this, the
company started its endeavour in the financial market.
Religare Enterprises Limited (A Ranbaxy Promoter Group Company) through Religare
Securities Limited, Religare Finvest Limited, Religare Commodities Limited and
Religare Insurance Broking Limited provides integrated financial solutions to its
corporate, retail and wealth management clients. Today, we provide various financial
services which include Investment Banking, Corporate Finance, Portfolio Management
Services, Equity & Commodity Broking, Insurance and Mutual Funds. Plus, there’s a lot
more to come your way.
Religare is proud of being a truly professional financial service provider managed by a
highly skilled team, who have proven track record in their respective domains. Religare
operations are managed by more than 3000 highly skilled professionals who subscribe to
Religare philosophy and are spread across its country wide branches.
Today, we have a growing network of more than 300 branches and more than 580
business partners spread across more than 300 cities/towns in India and a fully
operational international office at London.
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HOW RELIGARE POSITION THEMSELVES
31
Price-Quality Matrix
HDFC Sec
Indiabulls
Kotak
Investsmart
Indiainfoline
Religare ICICIDirect
price
qu
ali
ty
HDFC Sec
Indiabulls
Kotak
Investsmart
Indiainfoline
Religare
ICICIDirect
INDUSTRY ANALYSIS
32
Bargaining power of Suppliers: -Rules and regulations of
suppliersLow bargaining power
because of SEBI control
Potential entrantsIDBIUTI securitiesBank of BarodaJeojit
Threats to entryHuge capitalTechnologyRegulatory
ConstraintsNetwork
SuppliersNSE
BSEMCX
NCDEXCDSLNSDL
Industry Rivalry
SSKL Anagram Ltd. Religare Ltd.
BuyersSmall investorsHUFHNIMutual Fund
companiesInstitutional Investors
SubstitutesBank FDInsuranceMutual FundOther investment
tools
Bargaining power of Buyers:
Big investor then high bargaining power of buyers and vice versa.
Threat of competition
National players providing online trading and stock research services
Advantages of Online Share Trading
Freedom of Information
The Internet can provide a new sense of control over your financial future. The amount of
investment information available online is truly astounding. It’s one of the best aspects of
being a wired investor. For the first time in history, any individual with an Internet
connection can:
Know the price of any stock at any time
Review the price history of any stock in chart format
Follow market events in-depth
Receive a wealth of free commentary and analysis about stock markets and the
global economy
Conduct extensive financial research on any company
Talk with other investors around the world
Control of your Money
One of the great appeals of using an online account is the fact that the account belongs to
you, and is under your direct control. When you want to buy or sell stocks, you no longer
need to call your broker on the phone: hope that he is in the office to place your order;
possibly argue with the broker about the order; and hope that the transaction is executed
instantly.
Access to the market
At the most basic level, an Online trading account gives you more agility in buying and
selling stocks. This is through sophisticated information streams, dedicated trading
platforms and sophisticated tools for accessing the markets.
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Ensures the best price for the investors
It offers the best price for the buy or sell orders of the investors and traders. Also due to
the high level of transparency with regard to display of information relating to the
specific stocks and company profiles, you will be able to get the best quote for your
orders.
Offers greater transparency
Online trading offers you greater transparency by providing you with an auditrail. This
involves a complete integrated electronic chain starting from order placement, to clearing
and settlement and finally ending with a credit into your depository account. All these
stages are subject to inspection, thus bringing in transparency into the system.
Enables hassle free trading
Online trading integrates your bank account, your trading account and your demat
accounts, which leads to easy and paperless trading for you.
Allows instant trade execution
An online customer will be able to execute the entire trading transaction, right from
logging on to our site, to the execution and settlement of your bank account, in a very
short period of time.
Provides a level playing field
Trading on the net, gives even the smallest retail investor access to information that
earlier was available only to the big traders. This provides a level playing field for all
investors in the securities market.
Reduces the settlement Risk
This method of trading reduces the settlement risk for the investor, as in this case all short
sell orders are squared off at the specified cut-off time and not allowed to be carried
forward.
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In the case of a demat account your demat account is checked by us before executing
your sell transaction. This reduces the settlement risk for the buyer, who is assured of the
delivery of the securities and for you as a seller of the securities.
Instant order trade confirmation
Every trade is confirmed immediately and you will receive an on-screen confirmation
following every trade with full details for your records. This avoids costly errors that
would have been discovered when it’s too late.
Integrated Accounts
Your Bank, Depository and online account are integrated for your convenience. As an
online client one may have the choice of opening a bank account with different banks.
Provides a level playing field
Online account works hard to keep your account and personal information secure. From
updated security technology to advanced fraud prevention measures, we have the people
and tools in place to provide a strong defense against electronic scams and fraud.
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The Psychology of stock Market Participates
Understanding the psychology of the participants is the key to knowing how they will
behave when they are gripped by fear and greed. He who understands this philosophy is
able to manipulate the markets by using the different participants at different times. Now
let’s see what each one wants from the markets
Government
At this point when the world has become a global village and each country wants to
attract foreign capital , govt need booming markets. Stock markets are the barometer of
an economy.They send positive signals to foreign investors when they are in a bull phase
Booming stock markets create confidence and spur the govt to go ahead with their
economic policies. No govt likes depressed stock markets.
Regulator
Appointed by the govt , the regulateor also like booming stock markets.A rising market is
evidence of good governance.It also results in additional revenue in the form of higher
transaction and service charges due to increase in turnover.
Stock Exchanges
They facilitate stock transactions.During boom periods , incomes skyrocket by way of
transaction charges from brokers , listing fees, etc.
Brokers
In a bull markets the client increases and so do business opportunities This results in
higher incomes for the brokers.
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Bank
The business increases with soaring stock markets as opportunities open up in lending
against stocks , margin trading , depository and custodial business etc, The feel good
factor drives investors to banks for various financial services.
Companies
Rising markets lead to higher stock prices.The net worth of owners increases and
companies can mop up more capital for expansions.Financially healthy companies are
able to attract and retain good talent and keep their shareholders happy.
Mutual funds
Higher stockprices means increased net asset values. Rising markets attract more
investors which means more money under mgt and higher asset mgt fees.They are also
able to come out with different kinds of funds to satisfy every requirement.
Media
The media plays a pivotical role in spreading information. An increase in investors means
increased viewers which translates into increased advertisement revenue.
Investors
The quick money draws investors in a bull market Day traders become very active as
they are rewarded with easy gains.
Operators
He is the smartest and shrewedest of all. He is aware that the bull run psychology creates
the bull run. He knows the system he understands the psychology of the participants and
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he has the ability to exploit that for his own benefit. He is the king maker who uses his
knowledge to win over investors ,brokers and company management.
COMPANY OVERVIEW
38
About Religare
FOUNDER
Late Dr.Parvinder Singh(MD,RANBAXY LABORATORIES)
PHILOSOPHY
Working on the philosophy of being “Financial Care Partner” , Religare unlike other traditional broking firms not only executes the trades for the clients but also provides them critical and timely investment advice.The growing list of financial institutions with which Religare is empanelled as an
39
approved broker is a reflection of the high levels of service standard maintained by the company.
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MISSION & VISION
VISION
To be India’s first Multinational providing complete financial services solution across the globe.
MISION
Providing integrated financial care driven by the relationship of trust and confidence
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INTRODUCTION OF RELIGARE
Religare is driven by ethical and dynamic process for wealth creation. Based on
this, the company started its endeavour in the financial market.
Religare Enterprises Limited (A Ranbaxy Promoter Group Company) through
Religare Securities Limited, Religare Finvest Limited, Religare Commodities Limited
and Religare Insurance Broking Limited provides integrated financial solutions to its
corporate, retail and wealth management clients. Today, we provide various financial
services which include Investment Banking, Corporate Finance, Portfolio Management
Services, Equity & Commodity Broking, Insurance and Mutual Funds. Plus, there’s a lot
more to come your way.
Religare is proud of being a truly professional financial service provider managed
by a highly skilled team, who have proven track record in their respective domains.
Religare operations are managed by more than 3000 highly skilled professionals who
subscribe to Religare philosophy and are spread across its country wide branches.
Today, we have a growing network of more than 300 branches and more than 580
business partners spread across more than 300 cities/towns in India and a fully
operational international office at London.
Unlike a traditional broking firm, Religare group works on the philosophy of
partnering for wealth creation.We not only execute trades for our clients but also provide
them critical and timely investment advice.The growing list of financial institutions with
which Religare is empanelled as an approved broker is a reflection of the high level
service standard maintained by the company.
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Registered Office
55, Hanuman Road, Connaught Place, ,
New Delhi, Delhi - 110001
Tel: 23346875, , ,
Fax: 23346876,
Registrar & Share Transfer Agent
Intime Spectrum Registry Ltd.
A-31, 3rd Floor, Near PVR, Naraina Industrial Area, Phase I, New Delhi - 110028, Delhi.
Tel: 51410592, 51410593, 51410594
Key Officials
Chairman / Chair Person : Harpal Singh
Managing Director : Sunil Godhwani
Other Details
Business Group : Ranbaxy Group
Industry : Finance - Leasing & Hire Purchase
Listings : BSE , NSE
ISIN No. : INE991C01018
Incorporation : 23/03/1994
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S.No
.Location Type Address
1 Registered Office 55, Hanuman Road Connaught Place
New Delhi , Delhi - India
PinCode :110001
Phone :23346875,,,
Fax :23346876,
2 Corporate Office 210, Taj Building Dr. D N Road Fort
Mumbai , Maharashtra - India
PinCode :400001
Phone :22073191,,,
Fax :22073190,
3 Branch Office 24, R.N.Mukherjee Road
Calcutta , West Bengal - India
PinCode :700001
4 Branch Office
8D Century Plaza Anna Salai Teynampet
Chennai (Madras) , Tamil Nadu - India
PinCode :600018
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BOARD OF DIRECTORS
1 Mr. Harpal Singh Chairman / Chair Person
2 Mr. Vinay Kumar Kaul Director
3 Mr. Umesh Kumar Khaitan Director
4 Mr. V M Bhutani Director
5 Mr. Shivinder Mohan Singh Director
6 Mr. Malvinder Mohan Singh Director
7 Dr. Preetinder Singh Joshi Director
8 Mr. Maninder Singh Grewal Director
9 Mr. Vikram Sahgal Independent Director
10 Mr. Sunil Godhwani Managing Director
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NO.of branches More than 300
Business Partners More than 580
Spread Across More than 300 cities/towns
Operational Intrernational office London
The group comprises of
RELIGARE SECURITIES LTD
RELIGARE COMMODITIES LTD
RELIGARE FINVEST LTD
RELIGARE INSURANCE BROKING LTD WHICH DEAL IN EQUITY, COMMODITY,AND FINANCIAL SERVICES BUSINESS
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● Religare Securities Limited
RSL is one of the leading broking houses of India and are dealing into Equity Broking,
Depository Services, Portfolio Management Services, Internet Trading, Institutional
Equity Brokerage & Research, Investment Banking, Merchant Banking and Corporate
Finance.
To facilitate free and fare trading process Religare is a member of major financial
institutions like, National Stock Exchange of India, Bombay Stock Exchange of India,
Depository Participant with National Securities Depository Limited and Central
Depository Services (I) Limited, and a SEBI approved Portfolio Manager.
RSL serves a platform to all segments of investors to avail the opportunities offered by
investing in Indian equities either on their own or through managed funds in Portfolio
Management.
Religare Commodities Limited
Religare is a member of NCDEX and MCX and provides platform for trading in
commodities, which is an online facility also.
RCL provides platform to both agro and non-agro commodity traders to derive the actual
price of the commodity and also to trade and hedge actively in the growing commodity
trading market in India.
With this realisation, Religare Commodities is coming up with its branches at mandi
locations. It is a flagship effort from our team which would be helpful in facilitating trade
and speculating price of commodities in future.
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RELIGARE FINVEST
Religare Finvest Limited (RFL), a Non Banking Finance Company (NBFC) is
aggressively making a name in the financial services arena in India. In a fast paced,
constantly changing dynamic business environment, RFL has delivered the most
competitive products and services.
RFL is primarily engaged in the business of providing finance against securities in the
secondary market. It also provides finance for application in Initial Public Offers to non-
retail clients in the primary market.
RFL is also planning to initiate personal loan portfolio as fund based activity and mutual
fund distribution as fee based activities.
Along with this, the company also undertakes non-fund based advisory operations in the
field of Corporate Financing in the nature of Credit Syndication which includes inter
alias, bills discounting, inter corporate deposit, working capital loan syndication,
placement of private equity and other structured products.
● Religare Insurance Broking Ltd.
Religare has been taking care of financial services for long but there was a missing link.
Financial planning is incomplete without protective measure i.e. structured products to
take care of event of things that may go wrong.
Religare Insurance Broking Limited. As composite insurance broker, deals in both
insurance and reinsurance, providing our clients risk transfer solutions on life and non-
life sides.
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This service will take benefit of Religare’s vast business empire spread throughout the
country -- providing our valued clients insurance services across India. We aim to have a
wide reach with our services – literally! That’s why we are catering the insurance
requirements of both retail and corporate segments with products of all the insurance
companies on life and non-life side.
Still, there is more in store. We also cater individuals with a complete suite of insurance
solutions, both life and general to mitigate risks to life and assets through our existing
network.
For corporate clients, we will be offering value based customized solutions to cover all
risks which their business is exposed to. Our clients will be supported by an operations
team equipped with the best of technology support.
INTERNATIONAL EQUITY AND COMMODITY
International Equity and Commodities division scales up investment horizon for investors
by tapping into huge potential of international markets. This lets an investor partake a
share of international profits.
International Investment Advantage
Investors have a unique opportunity to participate in growth and profits of global
majors like Nokia, GE, Exxon Mobil, Pfizer and many others.
The width and depth of investment opportunities available internationally is
phenomenal. For instance, in India, current duration of a derivatives contract is three
months; liquidity is mostly restricted to one-month contracts. Overseas, an investor
can take longer derivative contracts (For example, General Electric Jan 2010 options
are available). Investors can also take open short positions in the cash markets.
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A chance to gain from major international events like currency movements, oil
demand- supply situation, interest rate changes etc; which have a high corelation with
global equity and commodities market.
Minimising risk through portfolio diversification. By spreading money over
diverse, stable, assured international financial markets, an investor can reduce country
specific risk.
International markets, especially American markets have an edge in terms of
being more retail investor friendly. The markets are strictly regulated, mature,
research led, efficient and transparent - based on verifiable information in public
domain.
From a global investment perspective, liquid capital (FII) tends to move back into
developed economies, from currently boisterous developing markets, on interest rate
hikes, e.g. American markets. Investing in foreign markets can create a near perfect
hedge against crashes in domestic markets due to interest rate changes and currency
valuation measures.
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The Religare Edge
Religare International ‘Advisory Fund Management Service’ provides advisory
services to clients who wish to profit from trading in International financial
instruments.
Our team of experienced professionals bring their expertise in asset allocation for
benefiting from best of international investment opportunities based on -
- Country attractiveness
- Sector and Industry attractiveness
- Company strengths
- Global commodities trend.
Our team takes personal care in designing specific asset allocation criterion to
match each individual’s risk/return appetite based on the following behavioural
concepts:
- Individual’s Risk Tolerance
- Optimisation of Returns Expected
- Portfolio: Monte Carlo Simulation
Client’s currency and credit risks are covered
Religare International division has exclusive tie-ups with top of the line
institutional research providers.
We encourage customer awareness through Religare’ exclusive daily newsletter-
‘International Market Wrap’.
All trading platforms are online and available at client’s end giving him/her the
unique advantage of transacting on his/her own (optional) and being able to monitor
his/her portfolio real time (optional) in a transparent environment.
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Investment banking
We provide innovative, integrated and best-fit solutions to our corporate customers, it
is our continuous endeavor to provide value enhancement through diverse financial
solution on an on-going basis, through products like corporate debt, private equity,
IPO, ECB, FCCB, GDR/ADR etc.
Corporate advisory group
Religare has set up a new TOP level sales force named Corporate Advisory Group-
(CAG) in order to create, maintain and serve excellent relationship by providing
various solutions to the corporate and Institutional sector globally.
CAG is a segmentric approach where for one segment all the products will be offered
by us.
CAG will be the one point for relationship for all big and small corporate, banks,
financial institution.
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FORTIS FINANCIAL SERVICES LTD
The company history sections lists out major chronological events that happened to the
company.
YEAR EVENTS 1994 - The Company was incorporated on 23rd March, and received the
Certificate of Commencement of Business on April 19. The Company was promoted by
Ranbaxy Laboratories Ltd. and its associates. The Company is engaged in business of
leasing, hire purchase, merchant banking and investments in capital and money markets.
19,70,700 No. of equity shares of Rs 10 each and 157,50,000 preference shares of Rs 10
each allotted to promoters. 10,29,300 No. of equity shares of Rs 10 each and 52,50,000 -
5% Convertible Preference shares of Rs 10 each were issued in February 1995 through a
prospectus as follows:
(i) 2,75,300 No. of equity shares on firm allotment basis to promoters and associate
companies,
(ii) 4,000 No. of equity shares to employees of the Company (all were taken up),
(iii) 7,50,000 No. of equity shares of Rs 10 each and 52,50,000 Convertible preference
shares to public (all were taken up).
1995 - The Company obtained its Category I Merchant Banking registration from SEBI
on 18th April.
The company issued 52,50,000-5% Convertible Preference shares of Rs 10 each to the
public. These are to be converted into 1 equity share of Rs 10 each at par at the end of 30
months from the date of allotment.
7,59,150 No. of Equity shares allotted.
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1996 - The honorable High Court at Delhi and Mumbai on 26th March, approved the
scheme of amalgamation of the Company with Fortis Financial Services Ltd. As per the
scheme of amalgamation the east while holders of Empire Finance were allotted one
share of Fortis Finance for every two shares held by them. Accordingly, 18,60,375 shares
were allotted.
2006
- Fortis Financial Services Ltd has informed that the Board of Directors of the Company
at its meeting held on December 19, 2006, has considered and approved the appointment
of Mr Vikram Sahgal as an Additional Director, in the capacity of "Independent Director"
with immediate effect.
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PRODUCTS &SERVICES
products
These are the main products of the company .
R-ACE CLASSIC R-ACE FREEDOM MAX TRADE R-ACE COMMODITIES
R- ACE PRODUCTS
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R-ACE PRODUCTS
R-ACE PRO
R-ACE
R-ACE LITE
1. R-ACE BASIC
Account activation charges Rs.299/- Minimum cash margin Rs.5000/- Easily accessible on browser Trade online and over phone Integrated DP; Back office & Trading Account Life time free DP account Earn interest on cash margin deposited with us NSE cash segment, NSE F&O and BSE on single platform Online Transfer of Funds through multiple banks
R-ACE BASIC
2. R-ACE LITE
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Account Activation charges Rs.499/- Minimum cash or stock margin Rs.5000/- No software installation required Real time streaming Quotes, Alerts, Hot key functions Trade online and over phone Life time free DP account Integrated DP; Back office and Trading account Earn Interest on cash margin deposited with us NSE cash segment, NSE F&O and BSE on single platform Online Transfer of Funds through multiple banks
R-ACE LITE
3. R-ACE PRO :
Account Activation charges Rs.999/- Minimum cash margin Rs.10,000/- Traders terminal on your desktop Technical Charting ( Intraday & EOD) Advanced Hot Key Functions Real time streaming Quotes, Alerts, Hot key functions Trade online and over phone Life time free DP account Futures & Options calculator Earn Interest on cash margin deposited with us NSE cash segment, NSE F&O and BSE on single platform Online Transfer of Funds through multiple banks
R-ACE PRO
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BROCRAGE OF RACE CLASSIC
RACE CLASSIC
0.03%0.04%0.05%Commodities
0.03%0.04%0.05%Derivatives
0.03%0.04%0.05%Intraday
0.3%0.4%0.5%Delivery
Gross monthly turnover( More than 5cr)
Gross monthly turnover( 1cr to 5cr)
Gross monthly turnover( Less than 1cr)
R-FREEDOM
BROKERAGE OF FREEDOM PRODUCT
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R-ACE FREEDOM
OPERATING CHARGES ( Additional)
Rs. 500 / month Rs. 1400 / quarter Rs. 2500 half yearly Rs. 4000 yearly
BROKERAGE-ON DAILY BASIS
Above 3,00,00,000 0.01Above 30,00,000 0.1
1,00,00,000-3,00,00,000 0.01510,00,000-30,00,0000.15
10,00,000-1,00,00,000 0.021,00,000-10,00,000 0.20
1,00,000-10,00,000 0.0310,000-1,00,000 0.30
0-1,00,000 NIL0-10,000 NIL
INTRADAYDELIVERY
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FREE VOLUMES
Brokerage Slab
0.01%Brokerage for trades between 5,00,00,000/-above
0.015%Brokerage for trades between 1,00,00,000/-and 5,00,00,000/-
0.02%Brokerage for trades between 10,00,000/- and 1,00,00,000/-
0.03%Brokerage for trades between 3,50,000/- and 10,00,000/-
Rs.3,50,000/-Daily Free Volumes
MAX TRADE
MAX TRADE Max Trade facility will allow the clients to take more
leverage on the available margin. This facility would be offered on specified scrips on NSE & BSE. The list of scrips would be on Periodical Basis.
PRODUCT SPECIFICATIONS: Exposure multiples: 20 times Allowed Exchanges: NSE & BSE Deposit: Minimum Initial and Maintenance deposit
requirement is Rs. 1,00,000. Both Ledger balance & stock valuation after haircut would be considered as balance.
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TIDE UP WITH THE BANK
BANK OPERATIONS
BANK OPERATIONS IN RACE TAKE PLACE ONLY THROUGH THE FOLLOWING FOUR BANKS:
ICICI BANK HDFC BANK UTI BANK CITI BANK INDUSIND BANK
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Equity and derivatives
For the first time Religare brings investing community the power to be associated with the
elite dealing rooms and freedom to execute trade on their own. That is, you may trade from
our branches or trade on your own over the net and with that you get our expertise and
assistance.
It has been designed to provide world class experience and expertise to investors. R-ALLY
as the name suggests is the perfect partner for savvy investors. Clients opting for this service
would be provided services managed by a team of dedicated relationship managers and
experienced trade dealers. They would not only assist the client in information dissemination
but would also take care of all post trade requirements.
This product comes as RACE, RACElite and RACEpro. It gives you the power of
trading from your home, office or while travelling and trade in the market of equity and
derivatives. You can log on and get started from your computers or your mobile devices.
These products have very exciting features like integrated DP, hot key functions and
much more...
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RACE BASIC
Account activation charges Rs.299/- .
Minimum margin of Rs.5000/- required.
No software installation required, easily accessible on browser.
NSE cash segment, NSE F&O and BSE on single platform.
Trade online and over phone.
Access your ledger balances and account information over internet, sms and over
phone.
Integrated DP, back-office and trading a/c.
Online transfer of funds through multiple banks.
Lifetime free DP account (No annual maintenance charges).
Earn interest on cash margin deposited with us.
RACE LITE
Account activation charges Rs.499/- .
Minimum margin of Rs.5000/- required.
No software installation required, easily accessible on browser.
NSE cash segment, NSE F&O and BSE on single platform.
Real-time streaming quotes
Alerts
Hot key functions
Trade online and over phone
Access your ledger balances and account information over internet, sms and over
phone.
Integrated DP, back-office and trading a/c
Online transfer of funds through multiple banks
Lifetime free DP account (No annual maintenance charges)
Earn interest on cash margin deposited with us
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RACE PRO
Account activation charges Rs.999/- .
Minimum margin of Rs.10,000/- required.
Traders terminal on your desktop
NSE cash segment, NSE F&O and BSE on single platform
Real-time streaming quotes
Advanced alerts
Technical charting (intra-day and EOD)
Multiple watch list
Advanced hot-key functions
Futures & options calculator
Access your ledger balances and account information over internet, sms and over
phone.
Integrated DP, back-office and trading a/c
Online transfer of funds through multiple banks
Lifetime free DP account (No annual maintenance charges)
Earn interest on cash margin deposited with us
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FEATURES OF RACE PRODUCTS
Procedure to login to Race –Platform
To login to Race platform, one needs to go to the homepage of site and click on “Online
trading->R-ACE->R-ACE Asp/Lite or Pro”. Once he clicks on this he will see a new
window where he needs to put his user id, login password and trade password to login.
Process to create a multiple watch list
To create a multiple watch list in R-ACE -Pro, go to “View->New Market Watch-
>select the exchange type”.
To see market watch in R-ACE–Lite, click on “new”, select the exchange type and put
any scrip name .This will show you a list of some scrips by default. He can right click on
any scrip and click on “Insert Security/Contract” .A small box will be presented to him
and he can choose the exchange, and then type of trade (equity/futures/options) .All he
need to do now is put in the name of the scrip and click on “find code” to view all the
tickers available for that scrip. Select the ticker and then click on “ok” to add it in the
market watck. Now he can save this setting by right clicking on any scrip.
Practice to add /delete scrips
To add/delete scrips, just right click on any ticker and click on either add security/delete
security or add from user set as per your desire.
To view various reports displayed
The various reports can be viewed under the drop down menu of “reports”. The different
reports are: Order book, Trade book, Intraday Net position, Margin Report, Assets
Report, Obligation Report, Exercise Report.
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Process to set Trigger/Alert
To add trigger, just right click on the selected scrip and then click on “filters/triggers” or
“scrip alert”.
Process to place a stop loss order
To place a stop loss order he can select stop loss in the order type.
Process to see derivative chain
Race Pro clients can view all the derivative instruments related to a particular underlying
security by right clicking on it.
Process to see technical chart
There are many advanced types of technical charts available for R-ACE –Pro clients.
These chart help to monitor the market on a continuous basis .One can view them by
right clicking on the scrip and then clicking on “EOD Chart” or “Intraday Chart”. Else
one can go to the drop down menu of “window” and click on “technical chart”.
Process to get the list of hot key functions
To view the list of all hot key functions, one needs to go to drop down menu of “help” in
R-ACE –Pro and then click on shortcuts.
Process to do an online payment
To make an online payment, One needs to go the links “fund transfer and fund
withdraw”. The purpose of fund transfer is to transfer funds from one’s bank account to
Religare account and the purpose of fund withdrawal is to transfer fund from Religare
account to One’s bank account.
The time taken in online fund transfer and fund withdrawal
Online fund transfer happens on a real time basis i.e. as and when one request for the
transfer and fund withdrawal takes a minimum of 1 day to get the request approved.
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Futures and Options calculator is also helpful
With futures and options calculator, One can calculate the fair value of futures and option
premium and volatility traded on the exchange .This will help one to take buy/sell
decisions.
The exposure given to race clients in intraday and delivery
Race clients get an intraday exposure of six times the margin and 0.99 times the margin
in delivery.
Meaning of auto square off
Auto Square off of all intraday orders will take place at 3.10 IST in all the three Race
platforms.
Is buying allowed in ‘Z’ category scrips?
Yes, buying is allowed in ‘Z’ category scrips.
BTST is allowed in R-ACE?
Yes, BTST is allowed on selected scrips.These scrips are selected based on their liquidity
and are reviewed periodically.
Margin requirement from a R-ACE client
The minimum margin requirement for R-ACE Basic is 5000, for R-ACE Lite is 5000,
and for R-ACE Pro is 10,000.
The brokerage structure for R-ACE Classic is:
Gross Monthly Turnover)less than 1
cr)
Gross Monthly Turnover(1cr to 5 cr)
Gross Monthly Turnover(less than 5 cr)
Intraday 0.05% 0.04% 0.03%
Delivery 0.50% 0.40% 0.30%
Derivatives 0.05% 0.04% 0.03%
Commoditie 0.05% 0.04% 0.03%
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s
Online funds transfer is possible from any of Client’s bank accounts
Fund transfer and withdrawl can be done from any of these four banks namely: ICICI,
HDFC, Citibank and UTI.
Process to get contract notes
Anyone can get E-contract notes on a daily basis. Request for physical contract notes is
chargeable at Rs20/- per request.
RACE PROCESS
• Centralized account opening:
– Separate Account Opening Forms to be used
– Account Opening form to consist of:
• Equity Trading: NSE, BSE & Derivatives
• Demat
• SEBI Approved Margin Funding
• POA for Online IPOs and Mutual Fund
• Commodity Trading: NCDEX and MCX
• Centralized Risk Management Cell
– Minimal manual intervention
– Fully online RMS
• Centralized Back-office
– Online fund transfer
– Online share transfer
– E-contract notes only; physical contract notes to cost Rs. 20/- per request
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– Support through call centre
– Support at branch level through Branch Coordinator
• Centralized trading & IT support
– Trading & IT support through call centre
– Square-off rights only dealer terminal at branch level
– IT support at branch level through Branch Coordinator
74
Objective of reasearch
Reasearch on “financial cost to consumers for online share trading with context to Religare &other players”
Today market is very competitive .That is why Religare Securities Ltd is also facing competition from the other players in online share trading.So it requires to knowing the product & services provided by the other players.It will give the co.the data & the statesstics about the product and services of the other online trading players.It will help the company to know how to get competitive advantage from the other players.
Any activity done without any objective in a mind cannot turn fruitful. An objective
provides a specific direction to an activity. Objectives may range from very general to
very specific, but they should be clear enough to point out with reasonable accuracy what
researcher wants to achieve through the study and how it will be helpful to the decision
maker in solving problem.
To know the product and services of other online trading players
To know the positive things about the company’s own product from others
To know the possible product changes required in current product
To find the lacking in the current product.
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Research design
A research design is pattern or an outline of a research project’s working. It is a statement
of only the essential elements of a study, those that provide the basic guidelines for the
details of the project. It comprises a series of prior decisions that taken together provide a
master plan for executing a research project.
A research design serves as a bridge between what has been established i.e. the research
objective and what is to be done, in conduct of the study to realize those objectives. If
there were no research design, the research would have only foggy notion about what is
to be done. There are numerous specific designs, which can be classified into three broad
categories.
Research design is the conceptual structure within which the research would be
conducted. In fact, it is the general blueprint for the collection, measurement and analysis
of data.
Data Collection
After taking the objectives into consideration resources of data are decided. Mainly data
sources are primary data and secondary data. Secondary data are the data that were
collected for another purpose and already exist somewhere. Primary data are data
gathered for a specific purpose or for a specific research project. The following are the
data acquired from the study:
Secondary Data Sources
It refers to already gathered and collected data. These may be internal sources within the
clients firms. Externally, these sources may include books or periodicals, data services,
reports and computer data banks. Here, the data is being collected from:
1. Details about the organization from websites of all other companies
2.Brochures of the Company
78
Primary Data Sources This data is gathering for the first time for the problem solution. Primary data has to be
collected through well-equipped instruments, as they are first hand information collected
for the research.
SAMPLING DESIGN
PROBABILITY/ NON PROBABILITY PROBABILITY
Sampling Unit Online trading players in Surat City
Sample Size 9 companies in online trading in Surat
Sampling Procedure Simple Stratified Sampling
Instrument Structured Questionnaire
Mode of Collection of Data Personal interview
Players in Online Trading are
RELIGARE SECURITIES LTD WWW.RELIGARE.IN
Indiabulls Securities Ltd www.indiabulls.com
IL&FS www.investsmart.com
Angel Broking www.angeltrade.com
Sharekhan www.sharekhan.com
Indiainfoline www.5paisa.com
ICICI direct.com www.icicidirect.com
HDFC Securities www.hdfcsec.com
Kotak Securities www.Kotaksecurities.com
Marvadi Shares Ltd www.marvadishares.com
79
1. What are Account Opening Charges?
CompanyAccount Opening
Charge
Religare Securities Ltd 999
Angel Broking 460
HDFC Sec 750
ICICI Direct 750
IL&FS 750
Indiabulls 500
Indiainfoline 555
Kotak Sec 750
Marvadi 250 +750
Sahrekhan 750
Account Opening charge
0200400600800
10001200
Online players
81
Analysis:
Average Account Opening Charges are between Rs. 500 to Rs. 750. Here the initial
charges while opening the account for the first time are only included. The yearly
maintenance charges are analyzed separately. The charges also include the DP charges.
Almost all claims for the lifetime charges, but many of them charges the annual
maintenance charge. Only RELIGARE SECURITIES, INDIABULLS AND
INDIAINFOLINE provide both the Demat and Trading account for Life time without
any annual maintenance charge.
For Marvadi shares, the charges mentioned includes the one year DP charges Rs. 250
and they provide ODIN Software for Online trading which is having installation charges
of Rs. 750.
For Angel Broking, having annual DP maintenance charge of Rs. 460, they also provide
the software for Online trading which can be downloaded from its Web site
Angeltrade.com. The official charges are Rs. 225 per month for using that software but in
most of the cases they take only Rs. 225 for one time only.
Marvadi Shares also having charge of Account Opening form for both Demat and
Trading Account that has to be added separately.
For Religare Securities, there are initial charges of Rs. 299, Rs. 499 and Rs. 999
according to customer’s convenience. The basic difference is that Rs. 299 and Rs. 499 are
Browser based whereas Rs. 999 is Software Based without any extra installation Charges.
One more difference in these plans is the number of Scripts shown i.e. in Rs.299 plan
only one Scrip is shown whereas in Rs.499 plan 15 Scrips are shown and in Rs. 999 plan
there is the facility of Unlimited Scrips. Hence, customer can go for any plan according
to his own convenience and experience.
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2. What is the brokerage structure for Intraday, Delivery and F&O trading ?
(In paisa)
Company Intraday Delivery F&O
Angel Broking 6 30 6
HDFC Sec 14 50 20
ICICI Direct 20 75 18
IL&FS 20 50 20
Indiabulls 10 40 10
Indiainfoline 10 50 10
Kotak Sec 12 59 14
Marvadi Shares 4 50 10
Sharekhan 10 50 10
Religare 5 50 10
Brokerage
01020304050607080
Online Players
Intraday
Delivery
F&O
83
Analysis:
The brokerage of ICICI Direct, HDFC Sec, Kotak Sec and IL&FS is more
compare to other players. It is the Maximum brokerage that can be charged. As the
volume of trading increases the brokerage structure is reduced in all the companies.
Brokerage is also negotiable issue in many of the cases. It can be reduced against the
volume of trading provided by client and also on base of relation in some cases. It is the
only source of income for the company from the client since with brokerage structure
other parameters like service also matters.
3. Is there any Initial Deposit required while Opening account?
Company Initial Deposit
Religare 5000 (4500 withdrawable)
Angel Broking Negotiable
HDFC Sec Nil
ICICI Direct Nil
IL&FS Nil
Indiabulls Nil
Indiainfoline 5000
Kotak Sec 5000 (Refundable)
Marvadi Shares 10000 (5000 withdrawable)
Sharekhan Nil
Analysis:
All the companies follow the rule for trading that the client can only buy shares of
amount available with his account. But the question asked here is whether that amount is
collected when the account is opened.
84
Many companies charge some amount as margin money from the client which the client
can use in purchasing the shares. Marvadi Shares requires some margin money to be
maintained.
Indiainfoline provides life time Account without any maintenance charge if margin of
Rs. 5000 is maintained.
While opening account in Kotak Securities the amount is Rs. 5000 is taken as initial
deposit for saving account in Kotak Bank which can be withdraw after opening of
account in few days.
Whereas as far as Religare Securities is concerned, the margin required to deposit is Rs.
5000 but Rs. 4500 can be withdrawable and only Rs.500 is to be maintained.
4. What are the trade Charges? (In Rs.)
Company Trade Charge
Religare 6
Angel Broking 5
HDFC Sec 23
ICICI Direct 20
IL&FS 20
Indiabulls 7
Indiainfoline 15
Kotak Sec 4 to 25
Marvadi Shares 30 (for small investors and is negotiable)
Sharekhan 16
85
Trade charge
05
101520253035
Online companies
Analysis:
Trade charge is taken by the Depository Participant while the share is tranfered from one
Demat Account to other Demat account. It is done while selling of shares, and also on the
request of client.
Here, the product of Sharekhan has very good, because there are no trade charges if
trading is done from Sharekhan, means if shares are bought and sold from Sharekhan
than there is no any trade charge. The client has to bear only Brokerage.
Trade charge of Religare is the lowest and in Kotak ,as the volume of trading increases,
the trade charge decreases.
In Marvadi Shares Ltd, the trade charge depends on the kind of Demat Account scheme the client has joined. But the figure given here is for the one year scheme
5. you providing any special trading Software? What are the charges of that software apart from Account Opening Charges?
Generally for any Online trading product there are two ways for client to do Online
trading.
86
One is through the facility of the online trading provided by the web site of the brokerage
firm through which by entering Client ID and Password the Client can do trading.
Many Companies provide the software similar to the software used by the broker at his
office is given to client which is having many more facility with more speed.
To get that software the client has to pay extra amount to get that software or to open
account in which the software is available. Here the extra amount is adjusted with the
account opening charges.
Company
Trading
through
Website without
Software
SoftwareSoftware
Charge
Religare Y Y NIL
Angel Broking N Y 225
HDFC Sec Y N NIL
ICICI Direct Y N NIL
IL&FS Y Y 250
Indiabulls Y Y 750
Indiainfoline Y YFree with
Conditions
Kotak Sec Y N NIL
Marvadi Shares Y Y 750
Sharekhan Y Y 250
Analysis:
At Angel Broking, the Company takes Rs. 225 as installation charges and as monthly
rent. But actually it is negotiable, practically the client is required to pay Rs. 225 for only
one time.
87
Indiainfoline provides software without any charges but they give condition that
brokerage of Rs. 1000 must be given by the client otherwise the client has to bear the rent
of Rs. 1000 – Brokerage. Means, if Brokerage of Rs. 700 is given by client the remaining
300 is taken as a rent.
Indiabulls Securities and Religare Securities provide the software at Rs. 750 and Rs.
999 respectively for lifetime without any brokerage condition.
At Marvadi Shares they put condition for client to give volume of Rs. 15000 per month.
Sharekhan charges Rs. 500 Per month
ICICI Direct, Kotak Sec, HDFC Sec doesn’t provide any software; the trading is done
only through the link given from web site
Marvadi Shares and Angel provide Software only.
6.Are you providing facility of Margin Trading? If Yes than what is the margin limit (Exposure) Do you provide in Intraday and Delivery Trading?
Company Intraday DeliveryRate of Interest
Charged
Religare 6 times 3%
Angel Broking 10 times 0 -
HDFC Sec 4 times 0 -
ICICI Direct 4 times 0 -
IL&FS 4 times 4 times 14%
Indiabulls 8 times 4 times 16%
Indiainfoline 6 times 2 times 18%
Kotak Sec 4 times 2 times 13% to 18%
Marvadi Shares 5 times 1 time -
Sharekhan 4to8 times 0 -
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Analysis:
In Intraday Limit Angel Broking gives the most Exposure limit. Even Religare
Securities gives the Exposure of 20 times on a condition that the margin amount to be
kept is 100,000 Rs.,Then only the Client is given 20 times limit.
In delivery base trading the margin limit given by the company is with interest rate
chargeable on the margin money provided by the company. There are only four players
provides this facility. The average interest rate is 16%.
If there is no margin money in the Client’s account, even than the client is allowed to buy
securities and he must deposit the cheque of that amount by next day or same day. But
this facility is generally allowed for the genuine or old client based on relation.
7. Are you providing the facility of Offline trading at the same branch?
Company Offline Facility at Branch
Religare Y (at Local branch and even at Toll Free
no. at main branch)
Angel Broking Yes(At Local Branch)
HDFC Sec Yes (at Toll Free no. at main Branch)
ICICI Direct Yes (at Toll Free no. at main Branch)
IL&FS Yes (at Toll Free no. at main Branch)
Indiabulls Yes(At Local Branch)
Indiainfoline No (Provides in rare case)
Kotak Sec Yes(At Local Branch)
Marvadi Shares Yes(At Local Branch)
Sharekhan Yes(At Local Branch)
89
Analysis:
It is necessary for the Client to have internet access from his residence or office premise
to do Online trading. But if the Client wants to buy/sell shares through telephone, then
Religare provide facility at the same local branch or main branch which is more
beneficial to the client. Others provide this facility only at the central/regional branch at
toll free number only.
8.Does the same Online Account include the facility of Commodities?
Company Offline Facility at Branch
Religare Y (at Local branch and even at Toll Free
no. at main branch)
Angel Broking Yes(At Local Branch)
HDFC Sec Yes (at Toll Free no. at main Branch)
ICICI Direct Yes (at Toll Free no. at main Branch)
IL&FS Yes (at Toll Free no. at main Branch)
Indiabulls Yes(At Local Branch)
Indiainfoline No (Provides in rare case)
Kotak Sec Yes(At Local Branch)
Marvadi Shares Yes(At Local Branch)
Sharekhan Yes(At Local Branch)
90
Analysis:
Commodity market is also a growing market. Companies has started to include the
facility of Online Commodity Futures. Only Angel Broking provides ODIN diet
Software which includes 5 in 1 facility. NSE, BSE, F&O, MCX and NCDEX.
ICICI Direct.com, Sharekhan, Indiainfoline provides facility of Commodity in other
special Commodity account.
Religare Securities is about to start Commodities and it provide the online facility for
the existing Clients who are already having their account in Equities. So, there is no extra
charge for commodity trading and even the offline facility will be given to their Clients at
local branch or even through Toll Free no.
9. Does the Product Provide facility of Online IPO?
Company Online IPO
Religare Y
Angel Broking N
HDFC Sec Y
ICICI Direct Y
IL&FS N
Indiabulls N
Indiainfoline N
Kotak Sec Y
Marvadi Shares N
Sharekhan Y
91
Analysis:
Only ICICI Direct, HDFC Sec and Kotak Sec provides facility of Online IPO. Kotak
Securities provides IPO on phone. The client only have to make a call and give the name
of the Company to be subscribed and the amount.
Others claim that the facility will come in recent time and Religare Securities is one of
them.
10. How many Number of Scrips can be included at a single Screen ?
Company No. of Scrips
Religare Software Only
Angel Broking Software Only
HDFC Sec 20
ICICI Direct 20
IL&FS 15
Indiabulls 20
Indiainfoline Software Only
Kotak Sec 20
Marvadi Shares Software Only
Sharekhan 24
Analysis:
Angel Broking ,Marvadi and Religare provides whole software for Online share
Trading which has to be installed in their computer. But companies like Indiabulls,
IL&FD, Sharekhan provides facility to do Online Trading without installing any
software. It is done through giving Client Id and Password through web site link.
92
In Religare Securities, if client goes for Rs. 299 plan then there is only one scrip shown
in the screen whereas if he goes for Rs. 499 then there is 15 scrips shown in the screen
and if he goes for Rs. 999 plan then only he is liable for software in that unlimited scrips
are shown. Hence, customer can go for the plan according to his convenience and
experience.
11. Do you Provide facility of IPO funding?
Company IPO Funding
Religare N
Angel Broking N
HDFC Sec N
ICICI Direct N
IL&FS Y
Indiabulls N
Indiainfoline N
Kotak Sec N
Marvadi Shares N
Sharekhan N
Analysis:
Only IL&FS provides facility of IPO Funding. On 75% - 25%. Means Company gives
loan of 25%. No other company gives this facility.
93
12. Is it required to refresh the screen to update while trading?
Company Refresh Required
Religare N
Angel Broking N
HDFC Sec Y
ICICI Direct Y
IL&FS N
Indiabulls N
Indiainfoline N
Kotak Sec N
Marvadi Shares N
Sharekhan N
Analysis:
The website link or software provided to the client by the company works as a real time
system that the rates are displayed as soon as any change takes place in them. But it is
required to press refresh key or to manually refresh to see the latest or updated rates in
case of ICICI Direct and HDFC Sec.
In case of Religare Securities, only when the client goes for Rs.299 plan then only he
needs to press refresh key to update the rates displayed on the screen otherwise there is
no need to press refresh key for any other plan. The software based and browser based
plans are user friendly so it is very easy to operate and access the trading by their own.
94
13. Do you provide Credit against DP balance? If Yes then how much?
Company Credit against DP Balance
Religare N
Angel Broking N
HDFC Sec N
ICICI Direct N
IL&FS 66%
Indiabulls 65%
Indiainfoline 65% to 75%
Kotak Sec 55% to 75%
Marvadi Shares N
Sharekhan 65%
Analysis:
Many companies allows the client to buy share against the shares in their Demat
Account. The client is given credit based on the grade of scrip he is having. If A grade
scrip is there, then the client can get maximum 85% amount for buying in Intraday. It is
known as hair cut. Means the client is given credit at 15% hair cut in this case. The
amount mentioned here is for A grade scrip. In most cases they provide the credit the A
grade scrip only.
95
14. Does the product having of Online tip flash during trading hours?
Company Online Tip during Trading Hours
Religare N
Angel Broking Y
HDFC Sec Y
ICICI Direct N
IL&FS Y
Indiabulls N
Indiainfoline Y
Kotak Sec Y
Marvadi Shares N
Sharekhan N
Analysis:
The client comes to know about the tips through either SMS, E-mail or through
Messenger. The Relationship Manager also gives the call to the genuine client if the
client asks so. Tips on SMS are also chargeable and not free.
Here the facility of online tip flash in the trading screen is only considered. Only IL&FS,
Indiainfoline HDFC Sec and Kotak Sec has this facility.
In case of Religare Securities, tips are sent through SMS without any charge i.e. free and
the website of religare has daily updated very good research through which the client can
easily predict the market and can trade.
96
15. What is the Payment Mechanism?
At HDFC Securities the amount is deducted from the savings account automatically and
also credited automatically when the client buys or sells the security.
At ICICI Direct, client has to manually transfer the money from the saving account
while buying the shares and the amount is credited automatically when the client sells the
shares.
Kotak Securities has tie up with other 3 banks, using net banking facility client can
transfer money online. But the things has to be done manually.
At Angel Broking, they doesn’t provide net banking. The whole payment is done
through cheque. When the client requests for money to take them back it provides the
cheque at the next day
Indiabulls, Sharekhan and IL&FS having tie ups with banks through that client can
online transfer money. Same way company credit client’s money to his account.
Marvadi shares doesn’t provide the facility of the online money transfer. The whole
payment is done through cheque.
In case of Religare Securities, it has tie up with 4 banks i.e. ICICI, HDFC, UTI and City
Bank. The client needs to have his account in one of the either 4 banks then he can make
the payment through cheque but in case if he doesn’t have his account in either of the
banks then he needs to open his Account in ICICI Bank which can be opened with 0
balance amount. Initially the client has to pay the cheque of any other bank to ICICI
Bank and through this Bank the Cheque is given to Religare Securities and by this way
the client gets the advantage of opening Demat Account in Religare and in ICICI Bank
with 0 balance amount.
97
TESTING OF HYPHOTHESIS
PEOPLE ARE AWARE OF ONLINE TRADING IN RELIGARE
H0: THERE IS NO SIGNIFICANCE DIFFERENCE BETWEEN THE ONLINE TRADING AND OFFLINE TRADING.
H1: THERE IS A SIGNIFICANCE DIFFERENCE BETWEEN ONLINE TRADING AND OFFLINE TRADING.
TRADING OBSERVED FRIQUNCY(Oi)
EXPECTED FRIQUENCY(Ei)
(Oi – Ei) 2(Oi – Ei)
2(Oi – Ei)/Ei
ONLINE 33 25 8 64 2.56OFFLINE 17 25 -8 64 2.56TOTAL 50 50 0 5.12
THE FORMULA FOR CHI SQUARE TEST:
N = 2
Oi E = …… n
2
X = Σ (Oi -Ei) ………….. Ei 2X = 5.12
98
D.F. = (n – 1)
= 1 2X Cal. Value is 5.2
The table value is at 0.05 level of degree = 3.84
So,
2 2XTab. < XCal
3.84 < 5.2
H0 : we may be reject.
99
Limitation of the studyI. There are many companies in the business of Online Share Trading but
due to the absence of their branch in Surat city, the data for that
Companies are not included.
II. The information given by the person of company may not be completely
correct. Some information may be given wrongly which may not be
factual. The complete parameters to compare the Online product are not
included.
III. Visual look of the Software and different facilities of software are not
included.
IV. Only one person of a company is interviewed.All the parameters may not
be relevant for all the companies.
V. Due to limitation of time and cost constraints a sample size of only 9
players of online trading are chosen. This exploratory research is done
focusing on the Comparative analysis scenario of Surat of South Gujrat
region only therefore findings and suggestions given on the basis of this
research and cannot be considered for the entire stock market Industry.
VI. 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.100
VII. The market risks and uncertainties are always there.
VIII. Long term future of any market has impact of govt. policies and decisions.
IX. Indian economy is highly dependent on monsoon, so despite of all the
precautions, projected growth rate can’t be maintained.
Reasearch findings
Angel Broking
They provide 5 in 1 product for Online Trading –
NSE, BSE, F&O, MCX and NCDEX
when client sells share and wants cheque, it provides cheque at next day.
Very low brokerage Structure.
Moderate rate for software installation charge.
HDFC Securities
Only in this product the money is automatically debited from the saving
account while you purchase share.
Online IPO
Saving account also included in the product
Demat, Trading and Saving Accounts are maintained under single roof.
ICICI Direct.com
Single product that provides the complete online investment at a click. It
includes Equity, F&O, IPO, Mutual Funds, Postal Saving, GOI Bonds etc
Demat, Trading and Saving Accounts are maintained under a single roof.
101
IL&FS
It provides IPO Funding on 75% - 25% bases.
Online tip flash during Market Hour
102
Indiabulls
No annual Maintenance Charges
Software for lifetime without any conditions of trading volume
Trade charge Rs. 7 only
Kotak Securities
The only company to provide facility for IPO at phone
Online IPO
Saving account is also included in the product
Demat, Trading and Saving Accounts are maintained under a single roof
Sharekhan
No Trade charge. The only company which doesn’t take any trade charge,
if the shares are bought from the sharekhan
Religare Securities Ltd.
Demat Account + Trading Account for lifetime
The only company which gives 3% interest on the idle amount remaining
in Demat account, hence it can be said a type of investment also.
Trade charge is only 6 Rs. The lowest as compared to other companies
Brokerage can be decreased to 0.10 paisa in Intraday and 10 Rs. In
Delivery based if the volume increases
The only company which gives the facility of charging no brokerage in
Intraday upto Rs. 3,00,000 and Rs. 40,000 in Delivery based.
The company provides offline facility also in online product as well.
The Exposure is 6 times to the general but can go upto 20 times limit on a
condition to keep margin of Rs. 1,00,000
103
It helps in opening up savings account in ICICI Bank with 0 balance
amount
BSE, NSE and F&O is provided on a single platform to trade with no
extra charges.
Very competent rate for opening account
Very competent rate for brokerage
Software for lifetime without any conditions of trading volume
No Annual Maintenance Charge
Only Rs. 500 is to be maintained to open Demat A/c and that too is
refundable while closing the Account
There is also a corporate scheme in which the employees of some
companies can open their demat account without any Activation Charge
i.e. completely Free for lifetime.
Very good Services given by them like regular tips through SMS or in
Email id.
104
Strengths of Religare securities ltd
The only company which gives 3% interest on the idle amt remaining in Demat A/c , hence it can be said a type of investment also.
Trade charges is only Rs. 6 The lowest as compared to other companies .
Demat A/c & Trading A/c for life time.
Brokerage can be decreased to 0.01paisa in Intraday & 0.10 RS. In delievery based if volume increases.
The only company which gives the facality of charging no brokerage in Intraday upto Rs. 3,00,000 & Rs. 40,000 in delivery based.
The company provides offline facalitites also in online product as well.
It helps in opening up saving A/c in ICICI Bank with 0 Balance A/c
It provides BSE ,NSE , & F&O on a single platform to tradeand no extra charges.
Rate of opening A/c are competitive.
It gives 6 times exposure in general which can go up to 20 times limit on a condition to maintain the margin of Rs.1,00,000
There is also a corporate scheme in which the employees of some companies can open their Demat A/c without any Activation Charges i.e. completely free for lifetime.
Very good services given by them like regular tips through SMS or in E mail id.
Brokerage charges are also competitive.
Software for lifetime Without any conditions of trading volumes.
No annual maintenance charge.
Only Rs.500 is to be maintained to open Demat A/c & that too is refundable while closing the Account.
Support of the strong & highly reputed promoter group.
105
Gape filling suggestions
Religare Securities Ltd has very good competitive product in the on line trading market. It includes most of the required facalities for the online trading. Still some gaps are observed.Therefore to become a perfect product in the markets following things are suggested.
Commecement of following services.
* Online mutual fund
* Online IPO
* Online tips services during trading hours.
As the company is new in the market , it requires to increase the awareness in the
market about the company inspite of doing well.
Brokerage charges for those traders who trade upto 1 crore are high compared to
other rivals.
Also the charges for those tradering between 1 to 5 crore are also not competitive
as against the big rivals Angel Broking Ltd.
It needs to increase the advertisement campaigns to make awareness of the
company.
Still It needs to improve the customer care services and for this the customers
should be provided regular tips on their mobile or E-mail.
The company is also suggested to start a unique campaigns to promote the online
trading on different media.
106
The charges for software are still competitively high and if it can be reduced the
company can affect huge mass of the customers.
Also conducting seminars in local city it can attract the mass for online trading.
Online IPO & Mutual funds would be aided advantage & the online up flash will
increase the volume of trading and the no. of clients to the Religare will be
increased.
It also give value aided services to the existing clients through special seminars on
any issues or new topic ,like commodities & effect of budget on share market.
It also requires positioning of the product and the company of coarse in the minds
of the customers.
107
Questionnaire
1. What are Account Opening Charges?
2. What is the brokerage structure for Intraday, Delivery and F&O trading?
3. Is there any initial deposit required while opening account?
4. What are the Trade charges?
5. Are you providing any special trading software?
6. Are you providing any facility of margin Trading? If yes, than what is the margin
limit (Exposure) do you provide in Intraday and Delivery trading?
7. Are you providing the facility of Offline trading at the same branch?
8. Does the Online account include the facility of Commodity?
9. Does the product provide facility of Online IPO?
10. How many Scrips can be viewed at a single screen?
11. Do you provide facility of IPO Funding?
12. Is it required to refresh the screen to update while trading?
13. Do you provide credit against DP balance? If Yes, than How much?
14. Does the product having facility of online tip flash during trading hours?
15. Does the product include Online Mutual Fund?
16. What is the Payment Mechanism while Trading?
109
Bibliography
Websites:
www.religare.inwww.indiabulls.comwww.indiainfoline.comwww.icicidirect.comwww.5paisa.comwww.hdfcsec.comwww.kotaksecurities.comwww.nseindia.comwww.bseindia.comwww.moneycontrol.comwww.njidiainvest.com
Books:
Research Methodology by C.R Kothari
Research Methodology by C.N. Sontakki
Security Analysis and Portfolio Management by V. K. Bhalla
Security Analysis and Portfolio Management by Prasanna Chandra
110
