Summer Training ProjectTITLE- A Study on Customer Satisfaction in Religare Securities Limited

Under the Guidance of : Presented By:Ms. Harleen Mahajan Amrinder Singh (Faculty, PCTE) MBA- 2A

Introduction to Brokerage Industry

The Indian Brokerage Industry consists of companies

that primarily act as agents for the buying and selling

of securities (e.g. stocks, shares, and similar financial

instruments) on a commission or transaction fee basis.

Security market has two main interdependent

segments:

Primary Market

Secondary Market

Evolution of Indian Brokerage Market

The Indian broking industry is one of the oldest trading

industries that had been around even before the establishment

of the BSE in 1875.

The equity brokerage industry in India is one of the oldest in the

Asia region.

The roots of a stock market in India began in the 1860s during

the American Civil War that led to a sudden surge in the

demand for cotton from India resulting in setting up of a

number of joint stock companies that issued securities to raise

finance.

Key players in brokerage industry

India Infoline

ICICI Direct

Angel Broking

Geojit Paribas

HDFC Securities

Kotak Securities

Reliance Money

Religare

Contd

Share Khan

SBI Demat

Motilal Oswal

Anand Rathi

Citi Bank Demat

Karvy securities

HSBC Invest Direct

Top 10 Stock brokers in India

1. ICICI direct.com 2. India Infoline 3. Kotak Securities Ltd. 4. Share Khan 5. Indiabulls 6. Motilal Oswal 7. Bajaj Capital 8. SMC 9. Angel Broking 10. Reliance Money

 Source-http://nsetradingsecrets.blogspot.com/

 

Religare Enterprise Limited

Religare Enterprises Limited (REL) is a global financial services

group promoted by the Ranbaxy group.

The company was originally incorporated as Vajreshwari

Cosmetics Private Limited on January 30, 1984.

The status of the Company was changed to a public limited

company by a special resolution of the members dated July 14,

2006.

ISO 9001:2000 certified company.

Vision & Mission

Vision To build Religare as a globally trusted brand

in the financial services domain.

Mission Providing integrated financial care driven

by the relationship of trust and confidence.

Logo

Companies Under Religare Enterprise Limited

Religare Securites Limited

Religare Securities Limited (RSL), a 100%

subsidiary of Religare Enterprises Limited is a leading

equity and securities firm in India

The major activities and offerings of the company

today are Equity Broking, Depository Participant

Services and Research Services

Religare has a very credible Research and Analysis

division, which not only caters to the need of our

Institutional clientele, but also gives their valuable

inputs to investment dealers.

Organisation Structure

OFFERINGSTrade in EquitiesDepository ServicesCommodity TradingCurrency Futures

SWOT Analysis

Strength

3.5 SWOT Analysis Of Religare Securities Ltd.

It is a Ranbaxy promoter Group Company.

Equity Research Team, one of the best in

market, which constantly track the pulse of

the market and provide timely investment

advice free of cost.

Weakness

Lack of sufficient branch-offices for speedy

delivery of services.

  Lack of awareness among customers

because of non- aggressive promotional

strategies (print media, newspapers, etc).

Lesser emphasis on customer retention.

Opportunities

Can easily tap the retail investors with small

saving through promotional channels like

print media, electronic media, etc.

More and more small investors are entering

into Share Market.

Threats

Aggressive promotional strategies by close

competitors may hamper Religare’s

acceptance by new clients.

 

More and more players are venturing into

this domain.

Current Ratio

(In crores)

2008 2009 2010

Current Assets 21.42 496.81 87.16

Current Liabilities 10.57 5.10 178.86

Current Ratio 2.03 97.41 .48

Quick Ratio (IN CRORES)

2008 2009 2010

Quick Assets 21.4 496.81 87.16

Current Liabilities 10.57 5.10 178.86

Quick Ratio 2.03 97.41 0.48

Absolute Liquid Ratio (IN CRORES)

2008 2009 2010

Absolute liquid

Assets

1.77 473.2 28.35

Current Liabilities 10.57 5.10 178.86

Absolute liquid

Ratio

0.17 92.78 0.16

Debt-Equity Ratio (IN CRORES)

2008 2009 2010

Long Term Debt 75.4 00 22.22

Shareholder’s

Fund

481.32 2518.64 2561.06

Debt- Equity Ratio .15 00 .01

Gross Margin Ratio (IN CRORES)

2008 2009 2010

Gross Profit 27.29 3.84 56.17

Net Sales 31.85 12.55 101.59

Gross Profit Ratio 85.68 30.59 55.29

Net Profit Margin Ratio (IN CRORES)

2008 2009 2010

Net Profit Before

Tax

23.31 -10.04 68.32

Net Sales 31.85 12.55 101.59

Net Profit Ratio 73.18 -80.00 67.25

Return on Total Assets (IN CRORES)

2008 2009 2010

Net Profit Before

Interest and Tax

27.35 11.00 90.27

Total Assets 556.71 2518.64 2583.28

Return on Total

Assets Ratio

0.05 0.004 0.035

Trend Analysis of Income

Years Income Percentage

2006-07 153831768 100

2007-08 319033984 207.39

2008-09 274448308 178.41

2009-10 1356955116 882.10

Contd….

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2006-07 2007-08 2008-09 2009-10

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Trend Analysis of Expenditure

Years Expenditure Percentage

2006-07 27108838 100

2007-08 85958102 317.09

2008-09 374294431 1380.71

2009-10 673763411 2485.40

Contd…

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Trend Analysis of Profit After Tax

Years PAT Percentage

2006-07 112011616 100

2007-08 234482528 209.34

2008-09 (159597780) (142.48)

2009-10 555164159 495.63

-200

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2006-07 2007-08 2008-09 2009-10

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Trend Analysis of Earning Per Share (EPS)

Years E.P.S Percentage

2006-07 2.09 100

2007-08 3.39 162.20

2008-09 (2.27) (108.61)

2009-10 6.27 300

Contd…

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2006-07 2007-08 2008-09 2009-10

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.S

TITLE

“A STUDY ON CUSTOMER SATISFACTION

IN RELIGARE SECURITIES LIMITED”

Objectives of the StudyTo analyse the factors affecting

customer satisfaction towards their broking firm.

To understand the customer expectations from their stock broking firm.

To study the problems faced by RSL customers.

Research methodology Research methodology is a way to systematically

solve the research problems. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with logic behind them.

• Research Design : Descriptive Design

• Method of Data collection : Primary Data Secondary Data

• Sample Design : Universe Population Sample Size Sampling Unit Sampling Technique

Limitations of the Study

Time Constraint.

Sample Size is too small.

Data Provided can be Biased.

Postal Survey.

Data Analysis and Interpretation

4.1 Frequency of Investment.

N=10062

13

22

3

0

10

20

30

40

50

60

70

Daily Weekly Monthly Yearly

Frequency

Perc

en

tag

e

4.2 Amount Invested.

4.3 Factors responsible for selection of Religare.

N=100

4.4 Satisfaction Level.

Figure - 4.5

4.5 Ranking of the Services.

4.6 Ranking of the Expected Facilities.

4.7 Distribution of the respondents according to level of Experiencing Time Lag while placing an order.

Mean=1.13

N=100

35

45

18

-2

0

70

45

0

-2

0

-10

0

10

20

30

40

50

60

70

80

Not at all Very few Average Often Always

Time Lag

No. o

f Res

pond

ent a

nd M

ean

Mean *No. of respondents

Mean score

. 4.8 To determine whether respondents faced any problem in after sale services. N=100

4.9 Various kind of problems faced by the Respondents. N=100

4.10 Reference of the Share Broker to Friend or Other Acquaintances.

FINDINGS It was found from the analysis that (62%) of the customers are

interested to invest their saving in the stock market on daily basis.

It was found from the analysis that maximum (33%) of the

respondents have invested their savings more than Rs 1,00,000 for

share trading.

It was found from the analysis that (30%) made the selection of

their stock broker on basis of it’s credit worthiness and trust while

(28%) made their choice due to qualitative services provided by

this broking house especially the amount of commission charged by

the share broker for their services.

It was found that maximum number of respondent are expecting

main services of ‘Putting orders without delay’, ‘Trading time

advice/guidance’ and Facility to see the margin amount and traded

shares at the end of the day’ from their share broker.

Contd… It was found from the analysis that majority of the respondents

i.e. (79%) have not faced any problem in after sales services

from their stock broker and are satisfied with services. However

findings revealed that majority of the customers are finding

problems related to the hidden charges charged by the company

and want an immediate remedial solution.

It was evident from the analysis that a quite significant number

of the respondents are satisfied with services, are not

experiencing any time lag while placing an order and will refer

their stock broking house to their friends and other

acquaintances.

Suggestions Most of the investors are not aware of the hidden charges

(taxes, stamp duty) charged by the Company. The charges

(brokerage and taxes) need to be revealed to the investors.

There is a need to improve services of ‘proper response from

the dealers’, ‘putting the orders without delay’, ‘Trading time

advice/guidance’ and ‘ provide proper exposure’ to their

clients.

A method should be established to award the employees

who provide maximum profits to their clients.

Try to reduce cost, so that benefits can be passed on to

customers.

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