religare financial p-197 fit hait tabhi to hit hai
DESCRIPTION
DETAIL OF RELIGARE STOCK TRADING HOUSETRANSCRIPT
It is a matter of great pleasure for me to be associated with Religare Securities Ltd. I,
_______________ hereby would like to thank the team of Religare Securities Ltd, Noida
Branch, for their cooperation during my project work.
I would like to thank Mr. Abhay Sawhney (Sales Manager) for giving me this opportunity. I
am also thankful to Mr. Manish Ajmani (Team Leader) and Mr. Ankur Kapoor ( Corporate
trainer) for providing overall guidance.
Finally, I am thankful to _________________and other faculty members for the continuous
support during the course of project.
This project report is the result of my 8 weeks of the training. Summer internship is an integral
part of the PGDM course, which the student has to undergo and it aims at providing a first hand
experience of the company to the student.
This practical experience helps the students to view the real business closely and correlate the
theoretical concepts better. I am really fortunate for getting an opportunity to have this learning
experience with Religare Securities Ltd
The project assigned to me was “ EQUITY AND FINANCIAL COMPARISION OF
RELIGARE SECURITIES LTD. FROM OTHER DIPOSITORY PARTICIPANTS.”
I found that practical application of various concepts is more interesting than theoretical learning.
Executive summary………………………………………………………………………8
Research and methodology…………………………………………………………...….9
Company profile……………………………………………………………………….....11
Corporate structure……………………………………………………………………….21
Business structure,………………………………………………………………………..22
Investment product…………………………………………………………..…….……..23
Products of religare……………………………..................................................…..……..24
Plans of religare……………………………………………………………………..……32
Competitors of religare………………………………………………….……….……….42
Meaning of symbol of religare………………………………………………….….….…43
Process of opening an account……………………………………….…………...……...45
Process of closing trading account………………………………..……………….…..…48
Process of closing D-MAT account……………………………………...……...….……50
Trade reward…………………………………………………………………………….51
Swot analysis……………………………………………………….……………..……..54
Where people do invest money…………………………………………….……………58
Stock trading(Equities)
Basic concepts…………………………………………………...……………………….59
Stock exchange……………………………………………………..…………………….60
Function of stock market………………………………………..………………….…….63
Commodity market……………………………………………………….….……….…..64
Indices (Sensex)……………………………………………………………………..……66
Nifty……………………………………………………………………….…………...…67
Transaction cycle……………………………………………………...……………….….68
Trading terminologies………………………………………………………….…….……70
Trade types………………………………………………………………………..……….74
Proposed offering of religare…………………………………….…………………..……..75
What is D-MAT…………………………………………………………………..………..77
Types of account……………………………………………………..…………..…….…..78
derivatives…………………………………………………………..………..….……….81
Options………………………………………………………………………..….………..82
Mutual fund…………………………………………………….……………..….……….85
IPO’s…………………………………………………………….…………….…..……….88
Insurance………………………………………………………………..……..……..…….89
Trading in equity……………………………………………………….…………………90
Comparison of religare with…………………………………………….………….......101
ICICI.direct.com……..102
Sharekhan…………….104
5Paisa.com……………109
Kotakstreet.com………114
Indiabulls……………..118
Analysis of comparison………………………………………………………………..123
Limitations…………………………………………………………………………..….128
Suggestions…………………………………………………………………………….129
Bibliography…………………………………………………………..….…………….130
Appendix………………………………………………………...………………..……131
Annexures……………………………………………………………………..…….…160
Questionnaire and interpretation…………170
Case Study……………………………………………………………………………..188
Synopsis of the report………………………………………………………………….195
Religare securities ltd is in the process of increasing its presence in India. It is trying to identify
potential opportunities in the major cities of India.
Being with Religare securities ltd as a summer trainee for 8 weeks has given me a key learning
in the area of share market. I learnt about the D-MAT A/C of the different companies. I learnt
how to capture a customer base with Religare.
The sample size was 5 and finally tried to suggest a set of recommendation for increasing the
awareness about Religare securities ltd, which would ultimately helps in increasing the customer
base.
The study was conducted in Noida branch at sec-18.
1. Objective of the study:
To get more practical knowledge about the equity.
To analyze the factors for investment in the market.
Comparison between the some securities to choose which is lacking in which
part.
To find out the current brand image of Religare Securities Ltd in the mind of the
respondents by way of comparison from other depository participants.
2. Hypothesis:
Assuming that Religare Securities Ltd has good brand image in the market on the basis of
following parameters;
It follows penetration strategy, means it has main focus on increasing customer’
base.
It provides a valuable products to its customers.
3. Research and Sample design:
There are many depository participants in the market but I researched only 5 companies
like ICICI direct, Sharekhan, Indiabulls,5paisa.com and Kotakstreet.com.
4. Scope of the study:
To understand the key parameters that influence the choice of the depository
participants.
To judge the awareness and perception held on Religare Securities Ltd and key
competitors(ICICI direct, HDFC bank, Indiabulls,Sharekhan and India-infoline)
To analysis the customers’ evaluation of the current depository participants.
Religare a company promoted, controlled and managed by the promoters of Ranbaxy was
founded with the vision of providing integrated financial care driven by relationship of trust. To
realize its vision, the company provides both, fund-based and non-fund based financial services
to its clients. These services include Broking (Stocks and Commodities), Depository Participant
Services, and Advisory on Mutual Fund Investments. The clients of the company greatly benefit
by its strong research capability, which encompasses fundamentals as well as technicals.
Religare provides integrated financial solutions to its corporate, retail and wealth man-agement
clients through Religare Securities Limited, Religare Finvest Limited, Religare Commodities
Limited and Religare Insurance Broking Limited. 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 in recent past has been constantly innovating in terms of the product and
services, which it offers, and in this respect it has started a premium NRI, FIs, HNIs, and
Corporate Servicing group. This group specifically caters to the growing investment needs of
these premium client categories by taking all their portfolio investment decisions depending
upon their risk / return parameter.
Religare has a very credible team in its Research & Analysis division, which not only
caters to the needs of our Institutional clients but also gives valuable input to Investment
Dealers / Investors.
Religare is also giving in house depository services to its clients and it is amongst the
leading Depository service providers in the country managing more than Rs. 6000 crores
worth of shares under its electronic custody.
Religare among capital market investment fraternity has carved a niche in per-formance
levels. We endeavor constantly to our motto of providing customized services to our
clients.
Industry
: Finance - General
BSE Code : 532915 NSE
Code
:
RELIGAR
E
Business
Group: Religare
Face
Value
: Rs.
10.00 ISIN No : INE621H01010
Chairman /: Mr. Malvinder Mohan
Singh
Market
Lot: 1
Market
Cap
:
2979.935 (Rs.Cr.
)
Registered & Corporate Office Registrar & Share Transfer Agent
19, Nehru Place, , , New Delhi, Delhi - 110019
Tel: 30815100/66552200, , ,
Fax: 30815288,
Email: [email protected]
Website: www.religare.in
Karvy Computershare Private Ltd
Plot No. 17-24, Vittal Rao Nagar, Madhapur,
Hyderabad - 500081, Andhra Pradesh.
Tel: 23420818, 23420824
Key Officials
Name Designation
Malvinder Mohan Singh Chairman / Chair Person
Sunil Godhwani Managing Director & CEO
Ravi BatraCompany Secretary and Compliance
Officer
Other Details
Business Group Ranbaxy Group
Industry Finance - General
BSE Code 532915
NSE Code RELIGAREEQ
Listings BSE , NSE
ISIN No. INE621H01010
Religare Enterprises Limited, a Ranbaxy Promoter group company is driven by ethical and
dynamic processes of wealth creation.
Through its subsidiaries provides complete financial services across all segments of institutional,
corporate, high net-worth and retail clients.
Religare’s operations are managed by highly skilled professionals who subscribe to philosophy
of managing relationships on the basis of trust and confidence.
Religare has a pan India reach through zonal and branch offices spread across length and breadth
of the country.
RELIGARE ENTERPRISES LTD.
Stock prices are delayed by 15 minutes on BSE, 5 minutes on NSE.
Exchange BSE NSE
Last Traded Price 389.00 389.50
Last Traded Date 7/28/2008 7/28/2008
Last Traded Time 3:48:00 PM 3:50:21 PM
Change (Rs.) -2.60 -2.50
% Change -0.66% -0.64%
Day's Open 393.95 386.00
Previous Close 391.60 392.00
Day's High 393.95 394.00
Day's Low 387.95 386.00
Total Traded Volume (Rs. In Crores) 2.35 26.98
Bid Price 387.00 389.50
Bid Quantity 10 256
Offer Price 389.00 0.00
Offer Quantity 235 0
Total Traded Quantity 2,468 6,114
Number Of Trades 226 398
52 Week High / Low's
Exchange High High Date Low Low Date
BSE 730.00 1/3/2008 323.75 11/21/2007
NSE 729.00 1/2/2008 312.70 3/26/2008
BOARD OF DIRECTOR:
S.No Name Designation
1 Capt. G P S Bhalla Alternate Director
2 Mr. R K Shetty Alternate Director
3 Mr. Malvinder Mohan Singh Chairman / Chair Person
4 Mr. J W Balani Independent Director
5 Mr. Padam Bahl Independent Director
6 Ms. Sunita Naidoo Independent Director
7 Mr. Deepak Ramchand Sabnani Independent Director
8 Mr. Sunil Godhwani Managing Director & CEO
9 Mr. Shivinder Mohan Singh Non Executive Director
10 Mr. Harpal Singh Non Executive Director
Key Executives
S.No Name Designation
1 Mr.Sunil Godhwani Managing Director & CEO
2 Mr.Ravi Batra Company Secretary and Compliance Officer
Religare Enterprise Ltd is a Ranbaxy promoter group company
6 Regional offices
25 Zonal Offices
Present in 1000 location all over India
Present in 350 Cities & Towns
Total group employees 5,500 plus
Present in Retail, Wealth and Institutional Spectrum
Among the largest Retail brokerage branch network, present beyond Tier-I and Tier-II
cities in India
Overseas presence established in London, with aggressive plans of straddling other parts
of the globe in this financial year
Religare Enterprises - Allotment of Equity Shares under ESOS 30/06/2008
Religare Enterprises fixes Book Closure for Dividend & AGM 28/06/2008
Religare Enterprises - Results Press Release 27/06/2008
Religare Enterprises Board recommends dividend 26/06/2008
Religare Enterprises - Press Release 24/06/2008
Religare Enterprises clarifies on news item 24/06/2008
Religare Enterprises - Clarification on News Item 23/06/2008
sReligare Enterprises - Clarification on News Item 18/06/2008
Religare Enterprises - Allotment of Equity Shares under ESOS 02/06/2008
Announcement:
AGM/EGM
Announcement Purpose Date FromDate ToDate Remarks
27/06/2008 AGM 20/09/2008 16/09/2008 20/09/2008 11% Dividend
1- R-ACE (BASIC)
2- R-ACE LITE (ADVANCED)
3- R-ACE PRO (PROFESSIONAL)
• Account activation charges Rs. 299/-
• Minimum Margin Money Requirement – Rs. 5000
• 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 and phone
• Online transfer of funds through internet payment gateway
R-ACE Basic: A Browser based trading platform that is easy to navigate with advanced stock
trading features. Customers can get quotes, trade, manage their accounts all from a single
platform.
• Account activation charges Rs. 499/-
• Minimum Margin Money Requirement – Rs. 5000
• No software installation required, easily accessible on browser
• NSE cash segment, NSE F&O and BSE on single platform
• Real-time streaming quotes
• Hot key functions for faster trading
• Trade online and over phone
• Access your ledger balances and account information over internet and phone
• Online transfer of funds through internet payment gateway
R-ACE Lite (Advanced) : An Applet based trading platform, providing access to live streaming
quotes, multiple market watch, message window and trading window, all in one screen, to help
customers track individual stocks and make timely trades when investing online.
• Account activation charges Rs. 999/-
• Minimum Margin Money Requirement – Rs. 10000
• Traders terminal on your desktop
• NSE cash segment, NSE F&O and BSE on single platform
• Real-time streaming quotes
• Technical charting (Intraday and EOD)
• Multiple watch list
• Advanced hot-key functions for faster trading
• Derivative chains
• Futures & Options calculator
• Access your ledger balances and account information over internet and phone.
• Online transfer of funds through internet payment gateway
• Trade online and over phone
R-ACE Pro (Professional) : For active traders. Launches directly from the trader's desktop and
offers advanced charting capabilities, technical analysis allowing them to execute a quick &
better trading decisions.
Religare is tie-up above 5 banks , it means only with these bank , client can do online trading.
(1)Race lite + Trump plus And trump Super
Account opening – Rs.499 and Rs.2500 as a advance Brokerage for a year.
Intraday Brokerage- 0.025%, Delivery-0.25%
Trump Account
Particulars Trump Plus Trump Super
Cost of Subscription Rs. 2,500 Rs. 15,000
Validity Period 12 Months 12 Months
Brokerage on Delivery Trades 0.25% 0.15%
Brokerage on Intraday Trades 0.025% 0.015%
Brokerage on F&O Trades 0.025% 0.015%
Terms & Conditions:
Brokerage will be charged at the rates as mentioned in the applicable brokerage table,
during the tenure of scheme.
During the tenure of scheme brokerage charged shall be reversed to a maximum of cost
of subscription only.
Brokerage over and above it within the tenure of plan will have to be paid by the client at
the same rate as quoted above
Taxes, duties and other charges shall be charged apart from above specified brokerage as
applicable from time to time.
Minimum brokerage per scrip would be 1p
This plan would expire, at the expiry of the applicable validity period of account; and
thereafter it shall be renewed on the same terms and conditions.
(2)Race lite + Freedom(Rs 4500)
Account opening – Rs.499 and Rs.4000 as a advance Brokerage for a year.
Intraday- Rs.3, 00,000 Free Daily after this 0.03%
Delivery-Rs.40, 000 Free Daily after this 0.30%
Free Volumes Allowed
Daily Free Intraday & Derivative Volumes Rs. 3,00,000
Daily Free Delivery Volumes Rs. 40,000
Calculation of Free Volumes
SegmentNSE
cash
NSE
Futures
NSE
T2T
BSE
Cash
BSE
T2TTotal
Free Intraday/Derivative Volumes 100,000 100,000 N.A. 100,000 N.A. 300,000
Free Delivery Volumes 10,000 N.A. 10,000 10,000 10,000 40,000
Brokerage (on daily volumes)#
Intraday / Derivative Delivery
Volume (in Rs.) Brokerage Rate Volume (in Rs.) Brokerage Rate
Upto 1 Lakh 0% Upto 10,000 0%
1 Lakh - 10 lakh 0.03% 10,000 - 1 Lakh 0.30%
10 Lakh - 1 Cr 0.02% 1 Lakh - 10 Lakh 0.20%
1 Cr - 3 Cr 0.015% 10 Lakh - 30 Lakh 0.15%
Above 3 Cr 0.01% Above 30 Lakh 0.10%
** Non Refundable
# Brokerage will be calculated on exchange wise and segment wise basis. Brokerage on trades above
free volumes will be charged at the flat rate of the slab in which the client falls on any particular day. For
example: If intraday volume in NSE segment is Rs. 25,00,000/-, total brokerage would be Rs. 480 {First
1 Lakh would be free and rest would be charged @0.02% as per the volume slab; i.e(25,00,000 -
1,00,000)*0.02%}
Features of Freedom Account:
minimum brokerage requirement per contract note.
No minimum brokerage requirement per trade.
Minimum brokerage per scrip is 1p (for extra trades above free volumes).
Charges on delayed payment @ 16% p. a..
Lifetime free AMC in Depository Account.
Interest on cash margin lying with us @ 3.5% p. a.
Other statutory charges, taxes and duties to be charged extra as applicable.
Disclaimer: Brokerage and interest rates are subject to change without notice.
(3) Classic Plus (Rs 1175/-)
A/C Opening: - Rs 499+ Rs 675 as brokerage for a period of six months.
Brokerage :- Intraday – 0.05%
Delivery – 0.50%
*Brokerage will be deducted from these 675.
Terms & Conditions:
Brokerage will be charged at the rates as mentioned in the applicable brokerage table,
during the tenure of scheme.
During the tenure of scheme brokerage charged shall be reversed to a maximum of cost
of subscription only
Brokerage over and above it within the tenure of plan will have to be paid by the client at
the same rate as quoted above.
Taxes, duties and other charges shall be charged apart from above specified brokerage as
applicable from time to time.
Minimum brokerage per scrip would be 1p
This plan would expire, at the expiry of the applicable validity period of account; and
thereafter it shall be renewed on the same terms and conditions.
(4)Classic lite (Rs.5499/-)
A/c Opening: - Rs 499 + Rs5000 as margin which will reflect in your account and you can trade
upon that Money .
Features:-
Lifetime free Depository Account.
Interest on margin money 3% p.a.
Online fund transfer facility with five banks
I.e ICICI bank, HDFC bank, Axis bank, Citi bank& Indusind bank.
Online & Offline trading facility.
Research Reports available on our Website.
Online IPO’s applying facility.
*Margin trading facility upto 20 times on intraday
Free zero balance saving a/c in icici bank for online fund transfer
Facility at the same time.
Brokerage and other charges:s
Any transaction entered attracts brokerage. Brokerage is debited in the account at the end of the
day.
RACE Classic:
Monthly Turnover
(Less than 1 cr.)
Monthly Turnover (1
cr. to 5 cr.)
Monthly Turnover (More
than 5 cr.)
Intraday 0.05% 0.04% 0.03%
Delivery 0.50% 0.40% 0.30%
Derivates 0.05% 0.04% 0.03%
RACE Freedom:
Brokerage (on daily volumes)#
Intraday / Derivative Delivery
Volume (in Rs.) Brokerage Rate Volume (in Rs.) Brokerage Rate
Upto 1 Lakh Nil Upto 10,000 Nil
1 Lakh - 10 lakh 0.03% 10,000 - 1 Lakh 0.30%
10 Lakh - 1 Cr 0.02% 1 Lakh - 10 Lakh 0.20%
1 Cr - 3 Cr 0.015% 10 Lakh - 30 Lakh 0.15%
Above 3 Cr 0.01% Above 30 Lakh 0.10%
Other Charges:
CHARGESCHARGED
ON
NSE
CASH in
%
F & O
in %
BSE CASH
%
Service TaxBROKERAG
E12.24 12.24 12.24
Other Charges (Stamp Charges+ Turnover
Charges) ( Intra day ) TURNOVER
0.0055
(Jobbing)0.0041
0.0057
(Jobbing)
STT (Intra day) (Applicable on Selling side
only)0.025 0.017 0.025
Other charges (Stamp+ Turnover
Charges) (Delivery) TURNOVER 0.0135 0.0137
STT (Delivery) TURNOVER 0.125 0.125
Indiabulls
HDFC mutual fund
ICICI direct.com
5Paisa.com
SMC
Reliance money
India infoline
Sharekhan
Kotakstreet.com
The name is paired with the symbol of a four-leaf clover , a rare mutation of the common three-
leaf clover. Traditionally, it is considered good fortune to find a four leaf clover as there is only
one four-leaf clover for every 10,000 three-leaf clovers found.Each leaf of the four-leaf clover
has a special meaning in the sphere of Religare.
The first leaf of the clover represents Hope. The aspirations to succeed. The dream of
becoming. Of new possibilities. It is the beginning of every step and the foundations on
which a person reaches for the stars.
The second leaf of the clover represents Trust. The ability to place ones own faith in
another. To have a relationship as partners in a team. To accomplish a given goal with the
balance that brings satisfaction to all not in the binding but in the bond that is built.
The third leaf of the clover represents Care. The secret ingredient that is the cement in
every relationship. The truth of feeling that underlines sincerity and the triumph of
diligence in every aspect. From it springs true warmth of service and the ability to adapt to
evolving environments with consideration to all.
The fourth and final leaf of the clover represents Good Fortune. Signifying that rare
ability to meld opportunity and planning with circumstance to generate those often looked
for remunerative moments of success.
Hope. Trust. Care. Good fortune. All elements perfectly combine in the emblematic and
rare, four-leaf clover to visually symbolize the values that bind together and form the core
of the Religare vision.
Following procedure is to be followed for RACE account opening:
1. In case of Power of Attorney a minimum of Rs. 50 of stamp duty is required to be
attached in the form of stamp paper, except in cases of some states. Furthermore the stamp paper
should be purchased in the state where the client has executed the document
2. The Agreement need not be notarized.
3. The forms once punched should be sent in the pre-addressed envelopes for this purpose
to Fortis Financial Securities Ltd ,255, 1st Floor Okhla Industrial Estate ,Okhla Phase -3 , New
Delhi- 20
4. In case a client wishes to transfer his existing R-ALLY account to R-ACE then please
follow the procedure mentioned hereunder:
• Fill up new R-ACE form (The client has to pay initial account opening charges and
margin by way of stock/cash)
• His existing trading account would be suspended (Client has to clear all his outstanding.
In case he has credit in his ledger balance, same would be returned to the client.)
• A new depository account would be opened that would be mapped to new R-ACE
account
• A new trading account would be opened in R-ACE client code format
• His existing Depository account (if any) would be deactivated/closed after transferring
shares, so that his depository account balances are NIL. He would also be required to clear all his
outstanding.
Branch will check the proper filled closure request form received from clients.
In case of RACE & LAS demat a/c closing form need to be collected compulsorily
along with DIS booklet the pending charges will be debited to his trading a/c by HO.
Additionally Bank a/c closing is required to close LAS a/c.
In case of corporate a/c board resolution is required along with the closure request.
Will check the margin and outstanding positions open for the a/c. If there is any
margin shortage / outstanding sales or pending auctions & settlements will keep the
form pending until clearance of same.
Will check that the ledger balance mentioned in the form tallies with the ledger
balance in LD.
o In case of debit in the a/c will ask client to clear the same immediately for
further processing.
o In case the balance mentioned in the form doesn’t match with the balance in
BackOffice, branch will issue and explain the statement of a/c to the client and
will ask the corrected closing letter.
Will check if there are any stocks lying in pool a/c.
o If there is any stock lying in Broker beneficiary a/c; on clearance of financial
debit branch will request for stock transfer to the clients DP a/c as per client’s
request.
o If there is no stock lying / is transferred to clients depository account; on
confirmation from branch manager a scan-copy of closure request should be
sent to [email protected] in HO for final closing.
On clients issues / problems reported Branch manager / Relationship manager should
to put remarks.
Branch will check the holdings of requested demat a/c.
o In case of stock lying in demat a/c, will request client to transfer the stocks to
desired a/c.
o In case of no stocks or after clearing the stocks in requested a/c process the
closure request further.
Branch will check the pending DP charges.
o In case of pending DP charges will ask client to clear the same immediately
o In case client has already paid will process the request.
* For Corporate & partnership firm a/c’s Board Resolution is required.
• Trade Rewards is a unique offering from Religare that gives you dual benefit of a hassle
free investment experience on the net as well as an opportunity to earn while you invest
with us.
• So earn Reward points each time you trade in equities and commodities or invest in your
favorite IPOs Online with us through our highly sophisticated and customized trading
platform R-ACE (Religare Advanced Client Engine)
How To Redeem Reward Point:
The reward points accumulated by customers can be redeemed using the ‘Redemption’ option in
the Trade Reward section.
They can start redeeming their reward points against our list of attractive Gift Vouchers and
offers
Strength
Religare is one of the fastest growing share trading company.
It has a great brand name of Ranbaxy Group associated with it for promoting its product.
The Religare is the only online share trading company that gives interest on cash margin.
Religare offer trade reward also which is a unique feature of Religare.
Customer will get a zero balance saving account in ICICI bank after opening online
demat account In Religare.
Religare provide lifetime free demat account, i.e. no annual maintenance charges.
Religare also provide 20 times exposure on intraday trading.
The employees of the company are quiet enthusiastic about the betterment of the
company.
The company gives utmost respect to customer service.
The company has a good relation with its channel partner.
Weakness
The company does not have a permanent online office in Varanasi so many people might
feel hesitation in investing in Religare.
At the time of account opening its margin money of Rs. 5000 is one of the factor which
sometime discourages customers to go for it while its competitors does not require any
margin money at the time of opening demat account.
Opportunities
The number of people of Varanasi who have knowledge about share trading is quiet less
so if they can be taught about the benefits of investing Religare then the company can
cover a big revenue.
People who have knowledge about share trading are not willing to invest due to the loss
beard by them by investing in wrong shares at the wrong time, so if these people can be
motivated then the company can earn big revenue.
Since most of the broking houses have been established in Varanasi (City area) so their
most of the customers belongs to city only. The rural area is untouched area where a lot
of potential is available for these kinds of broking houses. This area is called virgin area.
So if Religare target these areas so the company can create a number of new customers
and also earn big revenue.
Threats
Apart from Religare securities limited, other broking houses have permanent office in
Varanasi so people may be more attracted in investing in other company's broking
houses.
Religare has been launched before some times in Varanasi. The other broking houses
have been established before Religare, so they have more customers than Religare. Also
they have made the market concentrated so Religare may find difficulties in making new
customers.
What is a share?
• Having a share of a company means you own a part (SHARE) of the company
Shares as IPO’s
• Initial Public Offering (IPO) is when an unlisted company makes either a fresh
issue of securities or an offer for sale of its existing securities or both for the first
time to the public.
• The shares could be bought by fulfilling a simple formalities (online through
religare website)
• Post IPO the shares are listed on a Stock Exchange – a stock exchange is a place
where the already issued shares of a company are bought and sold.
+
• There are 23 National and Regional stock exchanges in India
• 2 are National Level Stock Exchanges : National Stock Exchange of India Ltd (NSE) &
Bombay Stock Exchange (BSE) while rest 21 are Regional Stock Exchanges (RSE).
• The Indices: An index is a benchmark that captures the movement of the share market.
– S&P Nifty: NSE stock index comprising 50 scrips
– Sensex: BSE stock index comprising 30 scrips
Stock Exchanges in India
NSE National Stock Exchange
BSE Bombay Stock Exchange
BSE - Bombay Stock exchange is one of the oldest stock exchanges in Asia with over 6,000
stocks listed
NSE - National Stock Exchange is one of the leading stock exchanges in India. The NSE has
been set up by leading institutions to provide a modern, fully automated screen – based trading
system with national reach.
Market Timings:
Equity / Cash Market
Market Time will vary in case of Sun Outage informed by Exchange
National Stock Exchange: 09:55 a.m. – 03:30 p.m. (Mon-Fri)
03:40 p.m. – 04:00 p.m. (post close)
Bombay Stock Exchange: 09:55 a.m. – 03:30 p.m.( Mon-Fri)
03:40 p.m. – 04:00 p.m. (post close)
• Raise resources for companies and business ventures through public issues.
• Transfer of resources from those having idle resources (investors) to others who have a
need for them (corporates).
• Provide channels for reallocation of savings to investments and entrepreneurship.
Securities in which one can invest:
• Equity
• Government Securities
• Derivative products
• Units of Mutual Funds
Commodities market is particularly significant to our country as India is essentially a commodity
based economy. The various commodities being traded on the exchanges include precious
metals, crude oil, agro-commodities etc.
Commodity Market - Exchange
MCX multi commodity exchange
(Multi Commodity Exchange).
NCDEX
National Commodity & Derivative Exchange Limited
NMCE
National Multi - commodity Exchange of India
Market Timings
MCX (Multi Commodity Exchange): 10:00 a.m. – 11:55pm (Mon-Fri)
Saturday (10:00-14:00)
NCDEX (National Commodity and Derivative Exchange): -
10:00 a.m. – 11:55 pm(mon-Fri)
Saturday (10:00-14:00)
NMCE (National Multi Commodity Exchange of India): -
10:00 a.m. – 05:00pm(Mon-Fri)
Saturday (10:00-14:00)
Sensex:
It is an index that represents the direction of the companies that are traded on the Bombay Stock
Exchange, BSE. It captures the increase or decrease in prices of stocks of companies that it
comprises.
Currently, all the 30 stocks that make up the Sensex have reached a value of 15,355 points.
These companies represent the myriad sectors of the Indian economy. A few of these companies
and the sector they represent are: ACC (cement), Bajaj Auto, Tata Motors, Maruti (automobile),
Infosys, Wipro, TCS (information technology), ONGC, Reliance (oil & gas), ITC, HLL (fast
moving consumer goods) etc.
Each company has a weight assigned to it. Companies like Reliance, Infosys, and HLL have
higher weightages compared to others like HDFC, Wipro, or a BHEL.
The increase or decrease in Sensex, is the effect of a corresponding increase or decrease in the
stock market price of these 30 companies. Sensex is the benchmark that represents Indian equity
markets globally.
It is the Sensex's counterpart on the National Stock Exchange(NSE).
The only difference between the two indices (the Sensex and Nifty) is that the Nifty comprises of
50 companies and hence is more broad-based than the Sensex. The Nifty 50 or the S&P CNX
Nifty as the index is officially called has all the 30 Sensex stocks.
The NSE Nifty functions exactly the way as the BSE Sensex does.
What is Rolling/Normal Settlement?
Under rolling settlement all open positions at the end of the day mandatorily result in payment/
delivery ‘n’ days later. Currently trades in rolling settlement are settled on T+2 basis where T is
the trade day.
For example: A trade executed on Monday is mandatorily settled by Wednesday (Considering
two working days from the trade day). The funds and securities pay-in and pay-out are carried
out on T+2 days.
A tabular representation of the settlement cycle for rolling set-tlement is given below:
Order book: The order book shows the complete list of orders placed for a particular day. Once
the order gets executed they go into the trade book.
Open position: The position which is not yet closed. E.g. when you buy 1 share and have not yet
sold it then your open position is 1 and when the share gets sold than the position stands nil.
Exposure: Exposure is x times the cash deposited. Suppose the exposure is 6 times, this means
that if the cash deposited is Rs 1000, the total exposure would be Rs. 6000.
Gross Allocated Exposure: It is the virtual amount spent. When order is placed, the quantity
multiplied by price of each share will be deducted from the gross exposure available.
Net used exposure: It is the real amount spent. When the order gets traded, the quantity
multiplied by price at which the order gets traded will be deducted from the net exposure
available.
Trade log- Trade Log is the detail of transactions done by a client on a particular day
Futures calculator: The futures Calculator helps to calculate the Fair Value of a particular
Future Contract given the spot price, expiry date, interest rate and dividend yield.
Obligation: The stock for which the delivery has not been received yet, are reflected in the
Obligation report. Once the delivery comes i.e. on t+2 days, the same will be reflected in the
Asset report.
Assets reports: Asset Report shows the total holding in ones account as on date.
Options calc: The options calculator calculates the option price or volatility for a particular
options contract given the Option type i.e. Call or Put, Spot Price, Strike Price, Time until expiry,
Interest Rate and volatility or Option Price depending on what needs to be calculated.
LTP- Last Traded Price
TTQ - Total Traded Quantity
TTV - Total Traded Volume.
Limit: A limit order is an order to buy or sell a security at a specific price. A buy limit order can
only be executed at the limit price or lower, and a sell limit order can only be executed at the
limit price or higher.
Market: Market orders are orders for which price is specified as 'MKT' at the time the order is
entered. For such orders, the system determines the price.
Stop-Loss: This facility allows the user to release an order into the system, after the market price
of the security reaches or crosses a threshold price called trigger price.
Example: If for stop loss buy order, the trigger is Rs.93.00, the limit price is Rs.95.00 and the
market (last traded) price is Rs.90.00, then this order is released into the system once the market
price reaches or exceeds Rs.93.00.This order is added to the regular lot book with time of
triggering as the time stamp, as a limit order of Rs.95.00.All stop loss orders are kept in a
separate book (stop loss book) in the system until they are triggered.
Trigger Price: Price at which an order gets triggered from the stop loss book.
Limit Price: Price of the orders after triggering from stop loss book
Trading System: The trading system features and user navigation for Market are described
below.
Quantity :Order quantity should be in multiples of Market Lot.
Price :Members can enter either market orders or limit price orders. Order price for limit price
orders should be in multiples of tick size.
Order Cancellation/Modification : Order cancellation and modification is allowed for orders
entered. Order cancellation functionality can be performed only for orders which have not been
fully or partially traded (for the untraded part of partially traded orders only) and only during
market hours.
Net Position :The Net Position screen displays consolidated statistics for all markets as well as
separately for each market.
Delivery Trades
This intimates the system to take delivery for the order placed. Incase of buy order, the system
will block the entire amount for the order placed. Incase of delivery sell order, one should check
the demat stock availability, once the order is accepted in the exchange the quantity put for sale
is blocked. Once the sell order is executed the entire amount generated from the sell trade will be
available for trading for further trading
Intraday or Square-off trades
Intraday price movements are particularly important to short-term traders looking to make many
trades over the course of a single trading session. The term intraday is occasionally used to
describe securities that trade on the markets during regular business hours.
ObligationTrades (BTST)
In case of Obligation trades, the customer may buy shares of a company to-day and sell of the
shares bought the very next day before the actual settle-ment
Lets say, if you buy 100 INFOSYS today at 3500 and tomorrow if the rate goes upto 3800, can
you sell the same
1. Manage Account Trading (R-ALLY)
• Offline
• Trade over phone at branches
• Online Trading to be allowed only on browser through iNet.net
2. Net Account Trading (R-ACE)
• Online
• Square-off rights only dealer at branch level
• Trade over phone at call centre
• Online trading to be allowed through various modes: browser and application
No call center support Call center support provided for trading,
back-office and IT support
Full branch level support Minimum branch level support
High level of manual intervention for
flexible processes
Fully automated processes
Basic software Feature-rich software
• Dematerialization is a process in which physical share certificates are converted into
electronic shares
• For the ease of settlement and many millions of transactions – the shares are traded in
electronic format
• The physical share certificate needs to be converted to Dematerialized format for
enabling trading
• Depository : The organization responsible to maintain investor's securities in the
electronic form is called the depository
• CSDL & NSDL are the 2 depository providing their services in India
• These Depositories are linked with Depository Participant (e.g. Religare Securities Ltd)
who are involved in servicing the customer for all Demat needs.
Demat Account
Demat is an account similar to a Bank account in which shares are held in electronic form.
Demat account is maintained by depositories (NSDL and CSDL and access is provided by DPs
e.g. Religare)
Savings Bank Account
An account with the bank where you keep your money and withdraw as and when needed (In
this case for trading purpose)
Trading Account
An account with the DP through which all the transactions are routed
EQUITY:
Equity investments are securities which represent ownership in businesses. This ownership is
purchased in the form of shares.
There are two ways in which you can invest in equities:-
• Primary market (by applying in IPOs)
• Secondary market (by buying shares listed on stock exchanges)
Advantages:-
• It is most liquid asset class
• It has a potential of high returns to the investors
• Investors can earn dividend income, as well as capital gains when the share prices shoot
up
• Equity shares gives ownership and control of the company.
• The term "Derivative" indicates that it has no independent value.
• Its value is entirely "derived" from the value of the underlying asset.
• The underlying asset can be securities, commodities, bullion, currency, live stock or
anything else.
Types:
• Futures Contracts
• Options
• A futures contract is an agreement between two parties to buy or sell securities at a
certain time in the future at a certain price.
• Futures contracts are standardized exchange-traded contracts.
• An option gives the holder of the option the right to do the something.
• Option holder has the right but not the obligation to exercise.
• The purchase of an option requires an up-front payment.
Options Terminology
• Index Options : India VIX based on the Nifty 50 Index Option prices.
• Stock Options
• Call Option : Option to buy
• Put Option : Option to sell
• Option buyer : One who buys the option. He has the right to exercise the option but no
obligation.
• Option seller : One who gives/writes the option. He has an obligation to perform, in case
option buyer desires to exercise his option.
• An investor buys one European call option on Infosys at the strike price of Rs. 3500 at a
premium of Rs. 50. If the market price of Infosys on the day of expiry is Rs. 3600
The investor's Break even point is Rs. 3550 (Strike Price + premium paid) i.e., investor
will earn profits if the market crosses above Rs. 3550.
• However, If at the time of expiry stock price falls below Rs. 3500 say suppose it touches
Rs. 3000, the buyer of the call option will choose not to exercise his option.
In this case the investor loses the premium (Rs 100), paid which shall be the profit
earned by the seller of the call option.
• An investor buys one European Put option on Reliance at the strike price of Rs. 300/-, at
a premium of Rs. 25/-. If the market price of Reliance, on the day of expiry is less than
Rs. 300, the option can be exercised.
The investor's Break even point is Rs. 275 (Strike Price - premium paid) i.e.,
investor will earn profits if the market falls below 275.
• Suppose stock price is Rs. 260, the buyer of the Put option immediately buys Reliance
share in the market @ Rs. 260/- & exercises his option selling the Reliance share at Rs
300 to the option writer thus making a net profit of Rs. 15 {(Strike price - Spot Price) -
Premium paid}.
• In another scenario, if at the time of expiry, market price of Reliance is Rs 320/ - , the
buyer of the Put option will choose not to exercise his option to sell as he can sell in the
market at a higher rate. In this case the investor loses the premium paid (i.e Rs 25/-),
which shall be the profit earned by the seller of the Put option.
• A MF is a pool of money put together by Investors – called as unit holders – who share a
common goal.
• The money thus collected is invested by professional fund managers in different types of
securities depending upon the objectives of the scheme.
• The Mutual Fund is managed by a Asset management Company (AMC)
• NAV : It's the fund's assets minus its liabilities divided by the number of outstanding
shares.
• Sales Load : Is a charge collected by a scheme when it sells the units. Also called, ‘Front-
end’ load. Schemes that do not charge a load are called ‘No Load’ schemes (Entry and
exit Load)
• NFO.
Advantages of MF
• Professionally managed portfolio
• Diversified portfolio
• Low cost of investment (economies of scale)
• It is possible to invest in small amounts.
• Simplicity
• Choice of schemes
• Various tax benefits are granted to investors of Mutual Funds e.g. ELSS scheme.
• At Religare one can invest Mutual Funds online.
• One can do online purchase and redemption in all the Schemes .
• One can check Latest (previous day) NAV’s and Invest online in NFOs of all the Mutual
Fund Schemes.
• One has the option of investing through the Systematic Investment Plan (SIP),
withdrawing through SWP and switching schemes (within the same MF).
• There is No BROKERAGE charged and only an entry and exit load is charged (by the
AMC) whenever one invests, redeems and switches.
• Normally to invest in an IPO, you would have to fill up a Form, write the Cheque, submit
the Form
• Through Religare just
– LOGIN
– SELECT IPO
– ENTER AMOUNT
– Subscribe & its Done
– No Filling of Forms
• No writing Cheques
• No standing in QUEUE
• Insurance is defined as “ A contract between two parties whereby one party called insurer
undertakes to pay the other party called insured a fixed amount of money on the
happening of a certain event, in exchange for a fixed sum called premium.”
• There are different kinds of Insurance Products available such as Health Insurance ,
Motor Insurance, Home Insurance, Overseas Travel Insurance, Rishtey – Parent’s Health
Insurance, Student Travel Insurance etc.
• For Example if a person buys a Life Insurance Policy by paying a premium to the
Insurance company , the family members of insured person receive a fixed compensation
in case of any unfortunate event like death.
• Advantages : Protection, Tax saving, Liquidity etc
.
Trading
The trading on stock exchanges in India used to take place through open outcry
without use of information technology for immediate matching or recording of
trades. This was time consuming and inefficient. This imposed limits on trading
volumes and efficiency. In order to provide efficiency, liquidity and transparency,
NSE introduced a nation-wide on-line fully-automated screen based trading system
(SBTS) where a member can punch into the computer quantities of securities and
the prices at which he likes to transact and the transaction is executed as soon as it
finds a matching sale or buy order from a counter party. SBTS electronically
matches orders on a strict price/time priority and hence cuts down on time, cost
and risk of error, as well as on fraud resulting in improved operational efficiency.
It allows faster incorporation of price sensitive information into prevailing prices,
. It enables market participants, irrespective of their geographical locations, to trade with one
another simultaneously, improving the depth and liquidity of the market. It provides full
anonymity by accepting orders, big or small, from members without revealing their
identity, thus providing equal access to everybody
Outstanding Orders
The purpose of Outstanding Orders (OO) is to enable the user to view the
outstanding orders for a security. An outstanding order is an order that has been
entered by the user, but which has not yet been completely traded or cancelled. The
user is permitted to see his own orders.
Special Features of Outstanding Orders:
The user can modify orders from the outstanding orders screen.
The user can cancel orders from the outstanding orders screen.
The user can view status of a particular order from the outstanding orders screen.
Activity Log
The Activity Log (AL) shows all the activities that have been performed on any
order belonging to that user. These activities include order
modification/cancellation, partial/full trade, trade modification/cancellation. It
displays information of only those orders in which some activity has taken place. It
does not display those orders on which no activity has taken place.
The following activities are displayed:
B For buy orders, this indicates a match.
S For sell orders, this indicates a match.
OC This indicates an order was cancelled.
OM This indicates an order was modified.
TC For both buy and sell orders this indicates that a trade involving this order was
cancelled.
TM For both buy and sell orders this indicates that a trade involving this order was
modified.
Order Status
The purpose of the Order Status (OS) is to look into the status of one of dealer’s
own specific orders. The screen provides the current status of orders and other
order details. The order status screen is not dynamically updated. In case the order
is traded, the trade details are also displayed. In case of multiple trades the display is scrolled.
ICICI DIRECT.COM RELIGAREONLINE.COM
ACCOUNT OPENING Rs:- 1200*
ACCOUNT OPENING Rs :- 299 with
commodity*
* with commodity and RS:- 750 without
commodity * will start shortly.
BROKERAGE :- .75%
0.05% BROKERAGE SCHEME-on
Intraday
effective yield :- .90% 0.50% ON Delivery
ANNUAL AMC IS RS:- 580/- PER ANNUAL NO AMC
NO DEALER SUPPORT DEALER SUPPORT
PROVIDE CALL CENTRE NUMBER ONLY CALL CENTRE & DIRECT LINES ALSO
4-20 TIME EXPOSURE 6-20 TIMES EXPOSURE
NO TRADE REWARDS POINTS TRADE REWARDS POINTS
NO LIMIT AGAINST THE DEMAT
HOLDING
LIMIT AGAINST THE DEMAT
HOLDING
Account Opening: Rs 750
Schemes: For short periods Rs 750 is refundable
against brokerage generated in a qtr. These
schemes are introduced 3-4 times a year.
Demat: NIL, 1st year charges included in
Account Opening Plus a facility to open
additional 4 DP’s without 1st yr AMC.
Initial Margin: Nil
Brokerage: All brokerage is inclusive of stamp
duty and exclusive of other taxes.
Slab wise brokerage ranges from 0.75% to
0.25% depending on volume.
SHAREKHAN RELIGAREONLINE.COM
Account Opening Rs:- 1000*
Account Opening Rs :- 299 with
commodity*
* Refundable against brokerga in month +1 * will start shortly.
0.10% BROKERAGE SCHEME-on Intraday
0.05% BROKERAGE SCHEME-on
Intraday
0.50% ON Delivery 0.50% ON Delivery
ANNUAL AMC IS RS:- 450/- PER ANNUAL NO AMC
NO INTEREST ON THE AMOUNT INTEREST ON THE MARGIN AMOUNT
3% per annual 3% per annual yield is high
Exposure- 4 times Exposure- 6-20 times
Account access charges-500 p.m. adjust against
brokerage NO ACC .
NO TRADE REWARDS POINTS TRADE REWARDS POINTS
Classic account- Rs.750/- Classic account- Rs.1175/-
NO LIVE STREAMING QUOTES LIVE STREAMING QUOTES
•Account Opening : Rs 1000 ( Refundable against brokerage in Month + 1)
•Demat 1st Yr : Incl in Account Opening
•Initial Margin : NIL
•Min Margin Retainable : NIL
•Brokerage :
Trading 0.10% each side + All Taxes
Delivery 0.50% each side + All Taxes
( Negotiable based on volume )
•Account Access Charges
Monthly Rs 500, adjustable qtrly against brokerage of Rs 9000/- for qtr
No access charges for gold customers ( Above 1 lac brokerage p.a)
Classic account
Account opening : 750 (lifetime)
Demat 1st year: free a/c opening
Intial margin : NIL
Minimum margin :NIL
Brokerage :
Trading 0.10% each side + All Taxes
Delivery 0.50% each side + All Taxes
( Negotiable based on volume )
Problems Of Sharekhan
Sharekhan interface is quite complicated
Sharekhan is good except customer care.
Sharekhan exposure is 4 times and Religare securities is the leader
here with 20 times.
Basic features are missing from company’s websities.
No written confirmation of buying and selling of shares.
Sharekhan still does not have full support for BSE trades and
May show your orders pendingand will not execute the orders.
High brokerage , high AMC (annula maintence charges) and account opening charges.
High amount of margin money required to put in dmat account
5PAISA .COM RELIGAREONLINE.COM
Account Opening Rs:- 500 Account Opening Rs :- 299 with
commodity*
* will start shortly.
0.10% BROKERAGE SCHEME-on Intraday
0.05% BROKERAGE SCHEME-on
Intraday
0.50% ON Delivery 0.50% ON Delivery
Initial Margine- Rs.-2500/- NoInitial Margine is required.
NO TRADE REWARDS POINTS TRADE REWARDS POINTS
Classic account- Rs.500/- Classic account- Rs.1175/-
Account access charges-800 p.m. adjust against
brokerage and Yearly Acc is Rs. 8000/- NO ACC..
ANNUAL AMC IS RS:- 250/- PER ANNUAL NO AMC
Minimum Margine-Rs.1000/- either in cash or in
securities No Minimum Margine is required.
Account Opening: Rs 500
•Demat 1st Yr: Rs 250
•Initial Margin: Rs 2500(Compulsory)
•Min Margin Retainable: Rs 1000
Brokerage:
Trading 0.10% each side + ST
Delivery 0.50% each side + ST
PRICING FOR HNI CLIENTS
Trader Terminal
•Account Opening: Rs 500
•Demat 1st Yr: Rs 250
•Initial Margin: Rs 5000(Compulsory)
•Min Margin Retainable: Rs 1000
•Brokerage:
Trading 0.10% each side + ST
Delivery 0.50% each side + ST
(Negotiable to 0.05% each side & 0.25%
•Account Access Charges
Monthly Rs 800, adjustable against Brokerage
Yearly Rs 8000, adjustable against brokerage
Problems Of 5 Paisa
•Downtime
Recent past 5 paisa Trader Terminal (T.T) is experiencing high frequency downtime between
3 – 3:30p.m due to server load (as their T.T is feature heavy compared to Speedtrade charting)
•Manual Accounting
The 5 paisa accounting system is manual, Online fund transfer through bank is not credited
instantly. Limit is provided EOD for shares sold from DP, or call Similarly limit released for
shares sold under BTST is manual Delay in receiving pay-out of clear funds from trading to
Bank Account
•Min Account Balance
Concept of Min Rs1,000 is to be maintained in form of cash / securities to keep account active.
This can be withdrawn only on closure of account
KOTAKSTREET.COM RELIGAREONLINE.COM
Account Opening Rs:- 500
Account Opening Rs :- 299 with
commodity*
* will start shortly.
Initial Margine- Rs.-5000/- NoInitial Margine is required.
NO TRADE REWARDS POINTS TRADE REWARDS POINTS
0.10% BROKERAGE SCHEME-on Intraday
0.05% BROKERAGE SCHEME-on
Intraday
0.50% ON Delivery 0.50% ON Delivery
Minimum Margine-Rs.1000/- either in cash or in
securities No Minimum Margine is required.
ANNUAL AMC IS RS:- 22.50/- PER
ANNUAL NO AMC
• Account Opening: Rs 500
• Demat: Rs 22.5 p.m
• Initial Margin: Rs 5000(Compulsory)
• Min Margin Retainable: Rs 1000
• Brokerage Slab wise: Higher the volume, lower the brokerage. Even older customers (on
0.25% & 0.40%) have been moved to the slab wise structure.
Problems of Kotakstreet
Rigid Account Opening Terms
No Flexibility of A/c opening charges (Rs 500) + Compulsory margin Rs 5000/- Account
opening free with Rs 10,000 Margin OR Competitor Contract Note.No Flexibility in
Leverage – Dependent on Type of Account ( 4 to 6 times only) No flexibility in
Brokerage, driven by slab structure.
No Customization of commercial Terms.
Restricted Access to Terminal like product
KEAT Desktop restricted distribution on payment of Rs 500, Non refundable
Many Other Charges:
Rs 22.5 p.m towards DP AMC charges
DP incoming charges extra, 0.02%
Rs 1,000 as retainable Margin to keep account active
Rs 25 per call after 20 calls for the month
INDIABULLS RELIGAREONLINE.COM
Account Opening Rs:- 250/- and Rs.200 for
Dmat
Account Opening Rs :- 299 with
commodity*
* will start shortly.
Classic account- Rs.950/- Classic account- Rs.1175/-
ANNUAL AMC - NO NO AMC
0.10% BROKERAGE SCHEME-on Intraday
0.05% BROKERAGE SCHEME-on
Intraday
0.50% ON Delivery 0.50% ON Delivery
NO INTEREST ON THE AMOUNT INTEREST ON THE MARGIN AMOUNT
3% per annual 3% per annual yield is high
NO TRADE REWARDS POINTS TRADE REWARDS POINTS
•Account Opening: Rs 250
•Demat: Rs 200 if POA is signed, No AMC for this DP
•Initial Margin: NIL
•Brokerage: Negotiable
Power IndiaBulls
•Account Opening: Rs 750
•Demat: Rs 200 if POA is signed, No AMC for this DP
•Initial Margin: NIL
•Brokerage: Negotiable
Problems Of IndiaBulls
POA for Clients DMAT
Charges are levied to move shares from IB pool Account to client DP account All shares held by
client trading with IB are moved to IB Pool Account and the same is shown as a reflection in
client DP account.
Paid Research Services
Access to a research even for an IB trading account holder is charged a min of Rs 500 a month.
Margin funding hoax
The interest on funding starts on leveraged delivery trades from T+1 day itself @21% p.a , on a
daily basis.
The role of Relationship Manager:
Each RM is looked upon as a revenue generator and he gets a % on business generated from
client. This can lead to over leveraged (Interest) & high frequency (Brokerage) trading, which
may not be in the best interest of the client
• No requirement of broker for trading activities.
• Order is placed online, so no way a wrong order is placed.
• Order can’t be late, because without time lag order is placed.
• All information regarding investment is always available in your own a/c.
• Completely paperless, so contract notes or cheques are not required
• Fully automated processes, so no dependency on any one.
• Trade on the NSE, BSE and NSE F&O, IPOs, MF and Commodities.
• Extra trading exposure on stock holdings.
• Trading support available without any extra charge.
Some of our interesting features and benefits are as follows:
Unique Features Benefits
Trade Rewards
Trade Rewards is a unique offering from Religare that gives you dual
benefits of hassle free investment experience online and an opportunity to
earn while you invest with us.
Exposure up to 20
times on your
Allowing you the freedom to trade without hassles throughout the day
without having to worry about your cash margin. You can get exposure
margin* (on cash segment) as high as 20 times for intraday trades.
Interest on cash
margin
Even while you are waiting to make your next trade or online investment,
your unutilized cash does not lie idle with us. You earn interest on your
unutilized cash margin.
At the time of account opening its margin money of Rs. 5000 is one of the factor which
sometime discourages customers to go for it while its competitors does not require any
margin money at the time of opening demat account
Sometimes its terminal works with low frequency, so that customers have to face many
problems specially in intraday .
Since it’s a brand, yet it faces number of difficulties to capture the customers of
INDIABULLS, RELIANCE and ICICI...
The information, estimates and opinions contained in this report are obtained from
sources considered to be reliable. However, I am giving qualification for this
report.
They did not provide full satisfaction about the queries.
Proper data is not available on the web-site.
The employees should not damage the goodwill of the religare securities ltd only to get
few profits.
There should be a proper coordination between the employees and use proper
communication.
The company should pay more attention in satisfying the clients, and retaining them for a
longer period.
The company should pay more emphasis on its customer support services. A regular
feedback should be taken by the clients regarding their problems.
The company should go for some more advertising and promotional activities to gain
more share of the market.
www.religareonline.com
NSE Newsletters
From Google
From journals (like-business-today and money-outlook)
www.nseindia.com
List of Abbreviations
ABC Additional Base Capital
BMC Base Minimum Capital
BSE Bombay Stock Exchange
CDSL Central Depositories Services Ltd.
CM Capital Market
Co. Company
DCA Department of Company Affairs
DEA Department of Economic Affairs
DP Depository Participant
DPG Dominant Promoter Group
DQ Disclosed Quantity
FI Financial Institution
FII Foreign Institutional Investors
F&O Futures and Options
IOC Immediate or Cancel
IPF Investor Protection Fund
LTP Last Trade Price
MBP Market By Price
MTM Mark To Market
NSE National Stock Exchange
NSCCL National Securities Clearing Corporation Limited
NSDL National Securities Depository Ltd.
NCFM NSE's Certification in Financial Markets
SEBI Securities and Exchange Board of India
ULIPs Mutual Funds
Investment amounts
Determined by the
investor and can be
modified as well
Minimum investment amounts are
determined by the fund house
Expenses
No upper limits,
expenses determined by
the insurance company
Upper limits for expenses chargeable to
investors have been set by the regulator
Portfolio disclosure Not mandatory* Quarterly disclosures are mandatory
Modifying asset
allocation
Generally permitted for
free or at a nominal cost
Entry/exit loads have to be borne by the
investor
Tax benefits
Section 80C benefits are
available on all ULIP
investments
Section 80C benefits are available only
on investments in tax-saving funds
ULIPs vs Mutual Funds: Who's better?
Unit Linked Insurance Policies (ULIPs) as an investment avenue are closest to mutual funds in
terms of their structure and functioning. As is the case with mutual funds, investors in ULIPs are
allotted units by the insurance company and a net asset value (NAV) is declared for the same on
a daily basis.
Similarly ULIP investors have the option of investing across various schemes similar to the ones
found in the mutual funds domain, i.e. diversified equity funds, balanced funds and debt funds to
name a few. Generally speaking, ULIPs can be termed as mutual fund schemes with an insurance
component.
However it should not be construed that barring the insurance element there is nothing
differentiating mutual funds from ULIPs.
How ULIPs can make you RICH!
1-Mode of investment/ investment amounts
Mutual fund investors have the option of either making lump sum investments or investing using
the systematic investment plan (SIP) route which entails commitments over longer time
horizons. The minimum investment amounts are laid out by the fund house.
ULIP investors also have the choice of investing in a lump sum (single premium) or using the
conventional route, i.e. making premium payments on an annual, half-yearly, quarterly or
monthly basis. In ULIPs, determining the premium paid is often the starting point for the
investment activity.
This is in stark contrast to conventional insurance plans where the sum assured is the starting
point and premiums to be paid are determined thereafter.
2. Expenses
In mutual fund investments, expenses charged for various activities like fund management, sales
and marketing, administration among others are subject to pre-determined upper limits as
prescribed by the Securities and Exchange Board of India.
For example equity-oriented funds can charge their investors a maximum of 2.5% per annum on
a recurring basis for all their expenses; any expense above the prescribed limit is borne by the
fund house and not the investors.
Similarly funds also charge their investors entry and exit loads (in most cases, either is
applicable). Entry loads are charged at the timing of making an investment while the exit load is
charged at the time of sale.
. Tax benefits
ULIP investments qualify for deductions under Section 80C of the Income Tax Act. This holds
good, irrespective of the nature of the plan chosen by the investor. On the other hand in the
mutual funds domain, only investments in tax-saving funds (also referred to as equity-linked
savings schemes) are eligible for Section 80C benefits.
Maturity proceeds from ULIPs are tax free. In case of equity-oriented funds (for example
diversified equity funds, balanced funds), if the investments are held for a period over 12
months, the gains are tax free; conversely investments sold within a 12-month period attract
short-term capital gains tax @ 10%
The Systematic Investment Plan (SIP) is a simple and time honored investment strategy for
accumulation of wealth in a disciplined manner over long term period. The plan aims at a
better future for its investors as an SIP investor gets good rate of returns compared to a one time
investor.
What is Systematic Investment Plan
A specific amount should be invested for a continuous period at regular intervals under
this plan.
SIP is similar to a regular saving scheme like a recurring deposit. It is a method of
investing a fixed sum regularly in a mutual fund.
SIP allows the investor to buy units on a given date every month. The investor decides
the amount and also the mutual fund scheme.
While the investor's investment remains the same, more number of units can be bought in
a declining market and less number of units in a rising market.
ELSS funds have a lock-in period of three years. This could be restricting, but look at the other
side of the picture -- the lock-in period prevents unnecessary withdrawals and helps your money
grow over a period of time.
If you are wondering why a three-year lock-in period is necessary, it is because you need to take
a long-term view when you invest in equity. The real potential of equities starts to show only
after a few years. This allows you to ignore the short-term slumps and stay invested for the long
haul.
How to compare mutual funds
The tax benefit
Investments in ELSSs fall under Section 80C.
The limit under this section is Rs 100,000.
This is irrespective of how much you earn and under which tax bracket you fall.
Also, there are no sub-limits under this overall Rs 100,000 amount.
So, if you choose, you can invest the entire amount in ELSS or infrastructure bonds. How you
utilise the limit of Rs 100,000 is entirely up to you.
What are the criteria for selection and review of scrips for the SENSEX?
A .QuantitativeCriteria:
1. Market Capitalization:
The scrip should figure in the top 100 companies listed by market capitalization. Also
market capitalization of each scrip should be more than 0.5 % of the total market
capitalization of the Index i.e. the minimum weight should be 0.5 %. Since the SENSEX
is a market capitalization weighted index, this is one of the primary criteria for scrip
selection. (Market Capitalization would be averaged for last six months)
2. Liquidity:
(i) Trading Frequency: The scrip should have been traded on each and every trading day
for the last one year. Exceptions can be made for extreme reasons like scrip suspension
etc. (ii) Number of Trades: Number of Trades: The scrip should be among the top 150
companies listed by average number of trades per day for the last one year. (iii) Value of
Shares Traded: Value of Shares Traded: The scrip should be among the top 150
companies listed by average value of shares traded per day for the last one year.
3. Continuity:
Whenever the composition of the index is changed, the continuity of historical series of
index values is re-established by correlating the value of the revised index to the old
index (index before revision). The back calculation over the last one-year period is
carried out and correlation of the revised index to the old index should not be less than
0.98. This ensures that the historical continuity of the index is maintained.
4. Industry Representation:
Scrip selection would take into account a balanced representation of the listed companies
in the universe of BSE. The index companies should be leaders in their industry group.
B.Qualitative Criteria:
Track Record:
In the opinion of the Index Committee, the company should have an acceptable track
record.
What is the beta of SENSEX scrips?
Beta measures the sensitivity of a scrip movement relative to movement in the
benchmark index i.e. SENSEX. A Beta of one means that for every change of 1% in
index, the scrip moves by 1%. Statistically Beta is defined as: Covariance (SENSEX,
Stock )/ Variance(SENSEX)
Note: Covariance and variance are calculated from the Daily Returns data of the
SENSEX and SENSEX scrips.
How is SENSEX calculated?
SENSEX is calculated using a "Market Capitalization-Weighted" methodology. As per
this methodology, the level of index at any point of time reflects the total market value of
30 component stocks relative to a base period. (The market capitalization of a company is
determined by multiplying the price of its stock by the number of shares issued by the
company)
An index of a set of a combined variables (such as price and number of shares) is
commonly referred as a 'Composite Index' by statisticians. A single indexed number is
used to represent the results of this calculation in order to make the value easier to work
with and track over time. It is much easier to graph a chart based on indexed values than
one based on actual values.
The base period of SENSEX is 1978-79. The actual total market value of the stocks in the
Index during the base period has been set equal to an indexed value of 100. This is often
indicated by the notation 1978-79=100. The formula used to calculate the Index is fairly
straightforward. However, the calculation of the adjustments to the Index (commonly
called Index maintenance) is more complex.
The calculation of SENSEX involves dividing the total market capitalization of 30
companies in the Index by a number called the Index Divisor. The Divisor is the only link
to the original base period value of the SENSEX. It keeps the Index comparable over
time and is the adjustment point for all Index maintenance adjustments. During market
hours, prices of the index scrips, at which latest trades are executed, are used by the
trading system to calculate SENSEX every 15 seconds and disseminated in real time.
How is the closing Index calculated?
The closing SENSEX is computed taking the weighted average of all the trades on
SENSEX constituents in the last 15 minutes of trading session. If a SENSEX constituent
has not traded in the last 15 minutes, the last traded price is taken for computation of the
Index closure. If a SENSEX constituent has not traded at all in a day, then its last day's
closing price is taken for computation of Index closure.
The use of Index Closure Algorithm prevents any intentional manipulation of the closing
index value.
Why does a company issue stocks?
The reason is that at some point every company needs to "raise money". To do this,
companies can either borrow it from somebody or raise it by selling part of the
company, which is known as issuing stock.
A company can borrow by taking a loan from a bank or by issuing bonds. Both
methods come under "debt financing". On the other hand, issuing stock is called
“equity financing”. Issuing stock is advantageous for the company because it does
not require the company to pay back the money or make interest payments along the
way.
All that the shareholders get in return for their money is the hope that the shares will
someday be worth more than what they paid for them. The first sale of a stock,
which is issued by the private company itself, is called the initial public offering
(IPO).
Stock Picking - Which stocks to buy?
Having understood all the basics of the stock market and the risk involved, now we
will go into stock picking and how to pick the right stock. Before picking the right
stock you need to do some analysis.
There are two major types of analysis:
1. Fundamental Analysis
2. Technical Analysis
Fundamental analysis is the analysis of a stock on the basis of core financial and
economic analysis to predict the movement of stocks price.
On the other hand, technical analysis is the study of prices and volume, for
forecasting of future stock price or financial price movements.
Simply put, fundamental analysis looks at the actual company and tries to figure
out what the company price is going to be like in the future.
On the other hand technical analysis look at the stocks chart, peoples buying
behavior etc. to try and figure out what the stock price is going to be like in the
future.
Earnings per share (EPS) ratio & what it means!
Even comparing the earnings of one company to another really doesn’t make any
sense, if you think about it. Earnings will tell you nothing about how many shares
the company has. Because you do not know how many shares a company has, you
do not know how many parts that companies earnings have to be divided into. If the
company has more shares, the earnings will be divided into more parts.
For example, companies A and B both earn Rs.100, but company A has 10 shares
outstanding, so each share holder has in effect earned Rs.10.
On the other hand, if company B has 50 shares outstanding and they too have
earned Rs.100 then each shareholder has earned Rs.2. So you see
It is important to know what is the total number of outstanding shares are as well as
the earnings.
Thus it makes more sense to look at earnings per share (EPS), as a comparison tool.
You calculate earnings per share by taking the net earnings and divide by the
outstanding shares.
EPS = Net Earnings / Outstanding Shares
So looking at the EPS ratio, you should go buy Company A with an EPS of 10,
right? EPS is not the only basis of comparing two companies, but it is one of the
methods used.
Note that there are three types of EPS numbers:
Trailing EPS – last year’s numbers and the only actual EPS
Current EPS – this year’s numbers, which are still projections
Forward EPS – future numbers, which are obviously projections
Price to earning (P/E) ratio & what it means?
If there is one number that people look at than more any other number, it is the
“Price to Earning Ratio (P/E)”. The P/E is a ratio that investors throw around with
confidence as if it told the complete story. Of course, it doesn’t tell the whole story
(if it did, we wouldn’t need all the other numbers.)
The P/E looks at the relationship between the stock price and the company’s
earnings. The P/E is the most popular stock analysis ratio, although it is not the only
one you should consider.
You calculate the P/E by taking the share price and dividing it by the company’s
EPS (Earnings Per Share that we saw above)
P/E = Stock Price / EPS
For example: A company with a share price of Rs.40 and an EPS of 8 would have a
P/E of: (40 / 8) = 5
What does P/E tell you?
Some investors read a high P/E as an “overpriced stock”.
However, it can also indicate the market has high hopes for this stock’s future and
has bid up the price.
Conversely, a low P/E may indicate a “vote of no confidence” by the market or it
could mean that the market has just overlooked the stock. Many investors made
their fortunes spotting these overlooked but fundamentally strong stocks before the
rest of the market discovered their true worth.
"Inflation" & how it eats your money silently & affects your investments!
Inflation, is an economic concept. What the cause of inflation is, is not important to us
from the point of view of this article. What is important to us is the effect of inflation! The
effect of inflation is the prices of everything going up over the years.
A movie ticket was for a few paise in my dad’s time. Now it is worth Rs.50. My
dads first salary for the month was Rs.400 and over he years it has now become
Rs.75,000. This is what inflation is, the price of everything goes up. Because the
price goes up, the salaries go up.
If you really thing about it, inflation makes the worth of money reduce. What you
could buy in my dad’s time for Rs.10, now a days you will not be able to buy for
Rs.400 also. The worth of money has reduced! If this is still not clear consider this,
when my father was a kid, he used to get 50paise pocket money. He used to use this
money to go and watch a movie (At that time you could watch a movie for
50paise!)
Now, just for the sake of understanding assume that my dad decided in his
childhood to save 50paise thinking, that one day when he becomes big, he will go
for a movie. Many years pass. The year now is 2006. My dad goes to the theater and
asks for a ticket. He offers the ticket-booth-guy at the theater 50paise and asks for a
ticket. The ticket booth guy says, “I am sorry sir, the ticket is worth Rs.50. You will
not be able to even buy a “paan” with the 50paise!!”
The moral of the story is that, the worth of the 50paise reduced dramatically.
50paise could buy a whole lot when my dad was a kid. Now, 50paise can buy
nothing. This is inflation. This tells us two important things.
Firstly: Do not keep your money stagnant. If you just save money by putting it your
safe it will loose value over time. If you have Rs.1000 in your safe today and you
keep it there for 10years or so, it will be worth a lot less after 10 years. If you can
buy something for Rs.1000 today, you will probably require Rs.1500 to buy it 10
years from now. So do not keep money locked up in your safe.
If you can’t think where to invest your money, then put it in a bank. Let it grow by
gaining interest. But whatever you do, do not just lock your money up in your safe
and keep it stagnant. If you do this, you will be loosing money without even
knowing it. The more money you keep stagnant the more money you will be
loosing.
Secondly: When investing, you have to make sure that the rate of return on your
investment is higher than the rate of inflation.
What is the rate of inflation?
As we said earlier, the prices of everything goes up over time and this phenomenon
is called inflation. The question is: By how much do the prices go up? At what rate
do the prices do up?
The rate at which the prices of everything go up is called the "rate of inflation". For
example, if the price of something is Rs.100 this year and next year the price
becomes approximately Rs.104 then the rate of inflation is 4%. If the price of
something is Rs.80 then after a year with a rate of inflation of 4% the price go up to
(80 x 1.04) = 83.2
So, when you make an investment, make sure that your rate of return on the
investment is higher than the rate of inflation in your country. In our
county India, for the year 2005-2006 the rate of inflation was 4% (Which is really
low and amazing!). This rate keeps changing every year. The finance minister
generally gives the official statement on the inflation rate of the country for a
particular year.
Investors beware of: Brokerage and taxation!
You probably know the concept that all your transactions in the stock market are done though a
"stockbroker". A stockbroker earns a commission on whatever transaction you make. Suppose
you make a transaction of Rs.2000, and the stockbroker charges you a 3% commission, then you
have to pay the stockbroker Rs.60 (3% of Rs.2000) for the transaction. So your total investment
in the transaction in “not Rs.2000”. The total investment in the transaction is Rs.2060/-
So after sometime, if the price of the stocks you invested in goes up to Rs.2060 then you have
not made any money because the total amount you invested was Rs.2060/-
What is more, even when you sell the stocks, you have to pay the broker brokerage of 3%. This
means that, when you sell the stocks for Rs.2060, you have to pay the broker Rs.61.6 so the
profit of Rs.60 you made on the transaction is gone, in fact you actually make a loss of Rs.1.6!!
Interest rates
It play a major role in determining stock market trends. Bull markets (those in an upward
market) are usually associated with low interest rates, and bear markets (those in a downward
trend) with high interest rates. Interest rates are determined by the demand for capital – pushes
them up and normally indicates that the economy is thriving and that shares probably expensive.
Low interest indicate low demand for capital, thus liquidity builds up on the economy, driving
share price down.
Company profits
Profits are very much an issue in share investment. Companies doing well in their business
activities are likely to attract more investors, thereby resulting in high demand of their shares.
Entities which are not doing well business wise may result in investors selling their shares on the
market. Selling en masse will result in more shares flooding the market and consequently
bringing the price down – an abundance of a commodity leads to price decline.
A political development –
It may have bearing on share price. Usually this factor cut across all the shares on the market, in
other words it is factor that impacts on all the shares irrespective of the sector classification. The
political factor is visible through regulatory processes and its influence (not specific) in share
price becomes the eventuality.
Perception factors have their own fair share of contribution to share price fluctuation. The fact
that South Africa is classified as developing economy, it means that general perceptions towards
developing economies will impact on local share prices as well.
Whichever way the wind blows, prices can rise quickly as they fall, confounding the best plans
of some industries while rescuing others from the brink of disaster. These random forces – “the
Great Unknowns” –combine with the everyday laws of supply and demand, and the cyclical
nature of business itself, to shape the peaks and valleys of a dynamically shifting market. An
investor may not be able to predict these forces, but analyzing and understanding them, one will
be better equipped to weather the lows as you wait for the tide of fortune to turn. It has to borne
in mind that the above are, by no means, only the factors that can influence share price
movement on the exchange.
Dividend Effect
I love dividend as much as you do, but apparently, it does not comes for free. Simply because,
the share price drops in the same value as the dividend paid after the ex-date. For instance, if
Wal-Mart Stores Inc. decided to distribute $1 per share as dividend to its shareholders, its share
price will generally drops from $49 to $48 per share after the ex-date.
So, do not comment so much in the future if the stock price drops after the dividend payout,
because you took the money away already.
Bonus Issue
Bonus issue is additional shares given by the company to its existing shareholders. By doing so,
the company is able to reinvest the dividend cash for better earnings
growth. In fact, this is another way for the company to maintain its share price at cheaper rate
without splitting the stocks. Bonus issue is also a good way to rewards long term stock
investors.Ideally, the share price drops the same ratio of bonus issued. For instance, if thcompany
is giving one new share for each four shares own by the shareholders, the share price will drop
by 20%.
Demand and Supply –
This fundamental rule of economics holds good for the equity market as well. The price is
directly affected by the trend of stock market trading. When more people are buying a certain
stock, the price of that stock increases and when more people are selling he stock, the price of
that particular stock falls. Now it is difficult to predict the trend of the market but your stock
broker can give you fair idea of the ongoing trend of the market but be careful before you blindly
follow the advice.
News –
News is undoubtedly a huge factor when it comes to stock price. Positive news about a company
can increase buying interest in the market while a negative press release can ruin the prospect of
a stock. Having said that, you must always remember that often times, despite amazingly good
news, a stock can show least movement. It is the overall performance of the company that
matters more than news. It is always wise to take a wait and watch policy in a volatile market or
when there is mixed reaction about a particular stock.
Market Cap – If you are trying to guess the worth of a company from the price of the stock,
you are making a huge mistake. It is the market capitalization of the company, rather than the
stock, that is more important when it comes to determining the worth of the company. You need
to multiply the stock price with the total number of outstanding stocks in the market to get the
market cap of a company and that is the worth of the company.
Earning Per Share – Earning per share is the profit that the company made per share on the last
quarter. It is mandatory for every public company to publish the quarterly report that states the
earning per share of the company. This is perhaps the most important factor for deciding the
health of any company and they influence the buying tendency in the market resulting in the
increase in the price of that particular stock. So, if you want to make a profitable investment, you
need to keep watch on the quarterly reports that the companies and scrutinize the possibilities
before buying stocks of particular stock.
Price/Earning Ratio - Price/Earning ratio or the P/E ratio gives you fair idea of how a
company’s share price compares to its earnings. If the price of the share is too much lower than
the earning of the company, the stock is undervalued and it has the potential to rise in the near
future. On the other hand, if the price is way too much higher than the actual earning of the
company and then the stock is said to overvalued and the price can fall at any point.
Before we conclude this discussion on share prices, let me remind you that there are so many
other reasons behind the fall or rise of the share price. Especially there are stock specific factors
that also play its part in the price of the stock. So, it is
always important that you do your research well and stock trading on the basis of your research
and information that you get from your broker. To get benefit from the effective consultancy
service it is therefore always better from professional stock trading companies rather than getting
lured by discount brokerage advertisements that you must be coming across everyday
Application form for opening an account
To
The Manager
Religare Securities Ltd.
Noida
Dear,
Sir I want to open a Dmat A/c with the name_____________, so the documents which I
have given are with the different names. My name as per Pan Card is___________________,but
my name on Pan Site is _____________________,name mentioned in the bank proof
_________________
,on my address proof is______________________ and additional ID is
______________________.
I accept there is difference in my name as mentioned on the AOF (for dmat a/c opening) and as
mentioned in the bank proof and other proofs, I also understand that all Payouts, Dividends, IPO
Refunds will be made as per my name in Dmat A/C only.
Name of the client________________ Signature _____________
Application for Closing Trading Account
I / We hereby request you to close my / our Rally / Race trading account. Details of the
same are as under
Client Code: _____________________
Client Name: ___________________________________ A/c Type:
_________________________
Other Facilities Availed: LAS MTF Other:
_______________________________________
Address:
________________________________________________________________________
I / We confirm the ledger balance: Credit / Debit Rs. ______________ as on date.
Please specify if any financial debit /credit entry pending / discrepancy as per
you:______________
____________________________________________________________________________
____________________________________________________________________________
I / We request you to transfer shares lying in broker beneficiary account to
Default demat a/c
Other mapped demat a/c details are Client id: _____________
DP Id: IN___________
Please specify reason for closing the account:
____________________________________________
_________________________________________________________________________
_________________________________________________________________________
Signature:
Application for Closing Demat Account
To
Religare Securities Limited,
Depository Division,
25 Nehru Place.
New Delhi – 110019
I/We hereby request you to close my/ our account with you.
I/We request you to transfer the balances of securities to my/ our account
with__________________
500_____________________________bearing my Client-ID
__________________________________
Client-ID
Name(s) of the holders
First / sole Holder
Second Holder
Third Holder
Signature (s)
First / Sole Holder
Second holder
Third holder
Instructions:
Relevant portions to be filled in
Please strike off as N.A. whatever is inapplicable
To be submitted in duplicate
Please surrender the unused ‘Delivery Instruction Slips’.
* Account will be closed only after clearance of all dues
Sir/Madam,
I (Manish Agarwal), an PGDM student of Global Institute of Management &
Technology, am pursuing my summer project on ‘Factors affecting the investments ’. Please
help me in filling out the questionnaire and I assure you that the information would be used
purely for academic purpose.
1. Which is the most preferred Investment options you are making use of?
(a) Bank ( b)Equity Market (c) Mutual Funds (d )Commodities
(e) Real Estate (f) Precious metals (g) insurance
2. What are your most preferred objectives while undertaking an investment?
a) Security b) Return c) Tax Savings d) Liquidity
3. When you think of mutual fund which mutual fund company comes in your mind at
first ?
a. ………
b. ……….
c. ………
d. ………..
4. What kinds of schemes have you invested in?
(a) Equity scheme (b)debt schemes (c) balanced schemes
(d) tax savings schemes
5. How much you save from your gross income every year?
(a) below 10% (b) 10% - 25% (c) 25% - 40% (d) 40% - 60% ( e)above 60%
6. Suppose you have to invest 1 lacs how would you allocate it among the following
opportunity-
a. Mutual Fund
b. gold /silver
c. Post office savings
d. real estate
e. Insurance
f. Shares
7 Please tick the one appropriate for you ?
a) Low risk - low return (return 4 to 10%)
b) Medium risk - medium return (return 10 to 20%)
c) High risk – high return (20%or above)
8 Are you comfortable with investing in the stock market?
a )highly comfortable b) comfortable
c ) undecided d) not decided
PERSONAL INFORMATION
Name
Age: Up to 25 26-35 36-45 46-55 56 Above
Occupation:
a) Housewives
b) Private company Employees
c) Government Employees
d) Students
e) Businessmen
Where do people invest their money?
Option No. of people Percentage
Mutual funds 21 42%
Share 26 52%
LIC 42 84%
RBI bond 12 24%
Postal & saving 16 32%
Fixed deposit 36 72%
Others 12 24%
Mutual funds, 21
Share, 26
LIC, 42RBI bond, 12
Postal & saving , 16
Fixed deposit, 36
Others, 12
Mutual funds Share LIC RBI bond
Postal & saving Fixed deposit Others
Interpretation
From the above chart we can say that most of the people believe in LIC and invest their money
in life insurance. LIC is followed by fixed deposits. This shows that a large number of people
prefer safety but now trend is changing and they started investing in shares and mutual funds as
these investments give high returns. The other investments come after these options.
Factor influencing investment decision
Option No. of people Percentage
Safety 43 86%
High rate of return 29 58%
Risk 38 76%
Brand image 22 44%
4329
3822
86%58%76%44%
0 10 20 30 40 50
No. of people
Percentage
Safety High rate of return Risk Brand image
Interpretation
From the above chart it is clear that most of the people prefer safety while investing any where.
They also consider the risk factor involved in the investment and see the corresponding return of
the related investment. Mostly young people want to invest in those securities which give higher
rate of return, so they are willing to take risk. On the other hand old people want safety in their
investments and does not consider high rate of return, so invest in LICs, FDs etc. some people
also consider brand name for the investment.
People have not invested in shares or MFs because of…
Option No. of people Percentage
Non awareness 26 52%
Risk involved 37 74%
Bad servicing 16 32%
26
37
16
52%
74%
32%
0%
20%
40%
60%
80%
100%
No. of people Percentage
Non awareness Risk involved Bad servicing
Interpretation
The above chart shows that most of the people are afraid of share trading because of the risk
involved in it. Some people who have invested in shares in past would not like to invest in shares
again because of the heavy loss born by them in past. According to them, the other meaning of
shares is loss. Out of 50 people 26 shows non awareness about share trading. These people are
mostly from the rural areas. The other people are not interested in investing shares because of
bad servicing faced by them by share broking houses.
Awareness about share broking houses in Varanasi
Option No. of people Percentage
Religare 24 48%
Icicidirect.com 41 82%
India bulls 32 64%
Share khan 22 44%
HDFC securities 19 38%
Kotak Securities 26 52%
Reliance money 23 46%
Others 12 24%
Awareness about share broking houses
48%
82%
64%
44%38%
52%46%
24%
0%
20%
40%
60%
80%
100%
Percentage
Religare Icicidirect.com India bulls Share khan
HDFC securities Kotak Securities Reliance money Others
Interpretation
The above data shows that icicidirect.com is the most well known share trading company in
Varanasi, reason being that it is the oldest company and has the maximum number of customers.
After that Indiabulls is more popular among share traders because of its features offered at a
lesser price. Religare
and reliance money is also getting popularity because of the unique features offered by them.
Hdfc and Kotak Securities are not much famous because of high charges and high margin
money.
Are you interested in doing share trading through Religare?
Option No. of people Percentage
Yes 29 58%
No 21 42%
Percentage
Yes, 58%
No, 42%
Yes No
Interpretation
The above chart shows that more and more people are attracted towards Religare for share
trading. As the company is newly launched in Varanasi before few months, its demand among
the share traders is quiet good despite of the big competitors already established in to the market.
In my survey out of 50 people 29 people show their interest to associate with Religare. Out of
these 29 people 7 people have opened their accounts in Religare's online portal through me and
rest of the people has told for future.
In Religare which medium of share trading would you choose in terms
of brokerage?
Option No. of people Percentage
Offline share trading 33 66%
Online share trading 17 34%
Interpretation
The above chart shows that in terms of brokerage most of the people believe in offline trading
because in offline trading the customers can bargain for low brokerage depending upon the size
of trading volume. But online trading is more rigid in this case. In online trading brokerage
bargain is generally not allowed.
Percentage
66%
34%
0% 10% 20% 30% 40% 50% 60% 70%
Offline shareTrading
Online shareTrading
Percentage
In terms of exposure, from where would you like to do share trading in Religare?
Option No. of people Percentage
Offline share trading 24 48%
Online share trading 26 52%
48%
52%
46%
47%
48%
49%
50%
51%
52%
Offline share trading Online share trading
Percentage
Percentage
Interpretation
From the above chart it is clear that more people prefer Religare's online broking house in terms
of exposure given to the customer for intraday trading. Customers can avail upto 20 times
exposure for intraday trading through Religare's online portal of share trading.
In terms of maintenance charges, from where would you like to do
Share Trading?
Option No. of people Percentage
Online share trading 34 68%
Offline share trading 16 32%
Percentage
68%
32%
Online share trading Offline share trading
Interpretation
From the above chart we can say that a large number of people are interested in doing share
trading from Religare's online portal in terms of maintenance charges as Religare's online demat
account offers life time free DP account i.e. no annual maintenance charges whereas offline
customers have to pay Rs. 350 per annum as annual maintenance charges.
In terms of time and convenience, which medium for investment will be
better for you in Religare?
Option No. of people Percentage
Online share trading 34 68%
Offline share trading 16 32%
34
16
68%
32%
Online share trading Offline share trading
Interpretation
From the above chart it is clear that most of the people would like to do share trading with the
Religare's online portal in terms of time and convenience, as the trading hour is between 10 AM
to 3:30 PM and this time people have to spend their time in their offices. So through online
trading they can do share trading from their offices or according to their preferred locations and
time and need not to face the hassle of going to the branch for trading. Few people like their
traditional way of doing share trading i.e. through offline medium.
In terms of information updates and technical analysis, from where would you like
to do share trading in Religare?
Option No. of people Percentage
Online share trading 41 82%
Offline share trading 9 18%
Percentage
82
%
18
%
0% 20% 40% 60% 80% 100%
Online sharetrading
Offline sharetrading
Percentage
Interpretation: In terms of information updates and technical analysis a large number of
people are in favour of Religare's online portal of share trading, because Religare's online portal
provides a website on which you can check for various information regarding a particular
share/shares or companies, also the latest events which are happening in a day to day business
world. The Religare's online software provides a latest techniques of charting and graphing
through which customers can compare the performance of any share or company through their
past performances. Apart from these features Religare's online portal also send investment tips to
its clients on their emails and cell phones (SMS), by company's top researchers and analysts.
In terms of Fund transfer and online banking, from where would you like to do share trading in
Religare?
Option No. of people Percentage
Online share trading 37 74%
Offline share trading 13 26%
74%
26%
0% 20% 40% 60% 80%
Online sharetrading
Offline sharetrading
Percentage
Online share trading Offline share trading
Interpretation
Again the majority is with the Religare's online portal of share trading. As the very name
indicates online share trading provides the facility of fund transfer and online banking. Religare's
online portal has a tie up with the online ICICI bank so it provides a zero balance saving account
in ICICI bank (customer can make their balance zero and against which they need not to pay any
charges i.e. need not to maintain 5000 quarterly balance) to its clients so that they can transfer
their funds within few minutes and apply for shares quickly. Also the customers can see their
saving account balance, account details, cheque book requests etc. online.
The offline customers have to wait for cheque clearings.
CUSTOMER SUPPORT SERVICE OF RELIGARE
Religare Enterprises ltd. a financial services provider, provides broking services in equity &
derivatives, commodities, mutual funds, insurance broking, wealth management, PMS,
institutional broking etc. RELIGARE SECURITIES LTD, a wholly owned subsidiary of REL,
specialize its services in Equity and derivatives. It provides platform for offline as well as online
trading to the investors in the stock market. There are two separate segments RALLY (which is
specialized for offline trading), and RACE (which provides a complete online trading platform,
for the investors).
The vision of the company is to build Religare as a globally trusted brand in the financial
services domain and present it as the ‘Investment Gateway of India’. Religare’s retail business
model is based on providing value added advisory services where it employs separate
relationship manager for its equity, commodity, personal financial services and insurance
businesses. This helps the company to create capabilities and expertise for each product and
benefits customers in achieving their investment objectives by providing detailed and well
informed advice. The equity and commodity clients simultaneously are assigned a Relationship
Manager (“RM”) and a Dealer. The RM focuses on new client acquisition while the dealers
continue to service existing clients.
The company plans to significantly enhance its online trading capabilities and has established its
online trading system to complement its other products and services offerings. Internet based
delivery allows the company to offer financial products on a self service model. It allows clients
to transact and view reports online, thus eliminating customer contact at branch level and
reducing rental personnel costs. A wide range of investment products are available online,
allowing the company to generate revenues from multiple products and services and better
withstand cyclical and volatile equity and commodity markets. The company’s online “RACE”
teams are placed in more than 50 cities across the country with a team of more than 1000 “Feet
on Street” direct marketers, who are employed on contractual basis.
This case highlights the problems of RACE clients of Religare, that is, the online trading clients
of Religare. A customer using the race product of Religare is provided with certain unique
features. Such as:
It provides interest on cash margin (3%). It means even if the investor is not trading, his
funds are not kept idle, he can earn interest on his funds. It acts as a savings account.
Provides exposure up to 20 times on the margin on max trade and 6 times at normal trade
level.
Provides minimum brokerage for big time intraday traders.
It also provides the facility of linking up a clients saving account with his trading account, so that
the client can trade easily even if he does not have sufficient balance in his trading account. The
amount of trading is automatically debited from his savings account. RELIGARE provides this
link up facility with 5 banks, namely- ICICI, HDFC, INDUSIND BANK, AXIS BANK and CITI
BANK.
Even though this is a unique feature that the company is providing, but the company is not able
to satisfy its customers in this regard. Many of its clients face problem in transferring the
funds from savings account to the trading account, which ultimately affect the trade to be
done by the client.
For instance, Mr. Lalit Mohan, an existing customer of Religare using its RACE product. His
client code is N153696 and he has taken a plan called trump plus brokerage plan, which gives
the company an advance brokerage of Rs2500 valid for a period of one year. Mr. Lalit Mohan
has been using Religare’s services for more than six months. And he has his savings account
with ICICI bank, and has faced the above mentioned problem of fund transfers. He discussed this
problem with his RM (relationship manager) and the problem was solved but it took some time.
And it is also re-occurring in nature, i.e. it is repetitive. As if now, He is not trading these days
because of the current market position.
There are many other online trading clients of Religare, who are facing the same problem
particularly those who have a savings account with ICICI bank, and some having savings
account with other banks.
Another client- Mr. Kshitij Bajaj, client code N151429, has his savings account with HDFC
bank. He has faced with the same problem again and again. The problem was solved but it took
time.
The company is providing very good facilities to its customers like online buying and selling of
MF, filing up their tax returns online etc. the company does not charge any annual maintenance
charges, so it’s a one time investment and you can get a lifetime free Dmat account.
So, this particular problem can take away some very good clients of the company. The company
must find out a concrete solution to this problem.
Another important thing that needs to be considered is that, there are many customers who want
to trade even at this downturn phase of the market, but they are not getting proper assistance.
Their complaint is that nobody is there to tell them which shares to buy at this point, the RMs
don’t pick up the phone calls. The reason behind is some of the employees have left the company
and they were assigned as RM to those clients. Some of the clients have not been given Demo of
services at the time of account opening.
There are some other problems regarding the customer support services of Religare. All these
problems are in relation with the RACE department of Religare.
Q1. Study the case above and give suggestive measures.
*(Note- this case is based on a small survey done by me during my summer training period at
Religare securities ltd. Noida branch, with the prior permission of my industry guide
Mr. MANISH AJMANI and the problems discussed are true.)
SOLUTION
The above case explains that the company is paying more attention in providing better services
to its clients, which is a very good thing for the company as a well as its clients. But the company
is not able to satisfy them from these services.
The major problem discussed here is the link up with another institution. So, if a problem is
coming ,both the institution should take care of it. The root cause of the problem needs to be
found out. There is a high possibility of some technical default, from either of the two sides. So
the problem should be taken care by the IT department.
Secondly, the clients are not getting proper assistance. The majority of the clients have little
knowledge about the market, as they are busy in their main occupation. The equity market for
them is a source of investment. Even the households are coming to invest in the market, so they
need proper assistance to help them to know more about the market. And they need to be
informed as to which stocks they should buy or sell and at what time.
Thus, in my opinion instead the customer giving call to their RMs, to ask for assistance, the RMs
should call up the clients to tell them the situation of the stocks ,they own. In this way the
company can reduce the number of dead accounts. And I think it is very much feasible to do so,
as the company has a high employee base and its own research team.
And, customer feedback should be taken regularly to show the clients that the feelings of the
company is for them only. In order to gain the trust of the clients and made them more loyal
towards the company. In this way the company can retain its customers for a longer period and
can get more clients with the help of the existing ones.
After discussing each question separately I came to the conclusion that in view of mine now a
day's people prefer online trading houses than in comparison with the offline trading houses.
This is because of the changing corporate scenario of the present business world. Due to
globalization and liberalization business world has reached to the edge of cut-throat competition.
Every person has to strive for fulfilling his needs & demands and for that he has to spend a lot of
time. And in the present corporate scenario time is one of the crucial factor that determines the
success or failure of any person or organization.
In the present scenario no one has time to go to the share trading branch for share trading
because the timing for share trading is between 9:55 AM to 3:30 PM which is an office hour. So
now people prefer to do share trading from the online broking houses. The online demat account
can be
accessed from anywhere through the internet. The online users can also check their bank balance,
fund transfer status, share trading history, order book, number of shares in a demat account,
balance in trading account, profit/loss etc. the online users have the facility of offline trading so
they have a backup of offline trading when internet is disconnected or not working. The online
demat account provided by the Religare is life time free and no annual maintenance is required.
According to my survey, the online demat accounts are mostly opened by the young
generation specifically the office going individuals and young businessmen. These persons are
educated and conscious about their career and growth. They want to earn more profit but at a
lesser time. And share trading is the best choice for them for earning more profit in a minimum
time. Also the sensex growth has attracted a lot of youngsters for share trading and because of
lack of time they prefer online trading of Religare as it offers better features at lesser price.
Despite all these features few people are still want to do share trading from Religare's
offline broking house. Because according to my survey these people are generally belongs to the
rural areas or they are of the old blood who don’t want to accept the new technology. These
people are generally unaware about the technology so they use offline medium for share trading.
But with the dynamic change in the technology and the changing condition of business will
create the great craze of online trading among the people which will improve the number of
online customers in the near future.