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 summary8 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 IPOs.....88 Insurance.......89 Trading in equity.90 Comparison of religare with........101 ICICI.direct.com..102 Sharekhan.104 5Paisa.com109 Kotakstreet.com114 Indiabulls..118 Analysis of comparison..123 Limitations...128

Suggestions.129 Bibliography....130 Appendix.....131 Annexures...160 Questionnaire and interpretation170 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, theres 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 Face Value : Rs. 10.00 ISIN No

: RELIGARE : INE621H01010

Business Group : Religare 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: investorservices@religare.in 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 Malvinder Mohan Singh Sunil Godhwani Ravi Batra Other Details Business Group Industry BSE Code NSE Code Listings ISIN No. Ranbaxy Group Finance - General 532915 RELIGAREEQ BSE , NSE INE621H01010 Designation Chairman / Chair Person Managing Director & CEO Company Secretary and Compliance Officer

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.

Religares 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 Last Traded Price Last Traded Date Last Traded Time Change (Rs.) % Change Day's Open Previous Close Day's High Day's Low Total Traded Volume (Rs. In Crores) Bid Price Bid Quantity Offer Price Offer Quantity Total Traded Quantity Number Of Trades 52 Week High / Low's Exchange BSE NSE High 730.00 729.00 High Date 1/3/2008 1/2/2008

BSE 389.00 7/28/2008 3:48:00 PM -2.60 -0.66% 393.95 391.60 393.95 387.95 2.35 387.00 10 389.00 235 2,468 226

NSE 389.50 7/28/2008 3:50:21 PM -2.50 -0.64% 386.00 392.00 394.00 386.00 26.98 389.50 256 0.00 0 6,114 398

Low 323.75 312.70

Low Date 11/21/2007 3/26/2008

BOARD OF DIRECTOR:

S.No 1 2 3 4 5 6 7 8 9 10

Name Capt. G P S Bhalla Mr. R K Shetty Mr. Malvinder Mohan Singh Mr. J W Balani Mr. Padam Bahl Ms. Sunita Naidoo Mr. Deepak Ramchand Sabnani Mr. Sunil Godhwani Mr. Shivinder Mohan Singh Mr. Harpal Singh

Designation Alternate Director Alternate Director Chairman / Chair Person Independent Director Independent Director Independent Director Independent Director Managing Director & CEO Non Executive Director Non Executive Director

Key Executives

S.No 1 2

Name Mr.Sunil Godhwani Mr.Ravi Batra

Designation Managing Director & CEO 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 Religare Enterprises fixes Book Closure for Dividend & AGM Religare Enterprises - Results Press Release Religare Enterprises Board recommends dividend Religare Enterprises - Press Release Religare Enterprises clarifies on news item Religare Enterprises - Clarification on News Item sReligare Enterprises - Clarification on News Item Religare Enterprises - Allotment of Equity Shares under ESOS

30/06/2008 28/06/2008 27/06/2008 26/06/2008 24/06/2008 24/06/2008 23/06/2008 18/06/2008 02/06/2008

Announcement: AGM/EGM Announcement 27/06/2008 Purpose AGM Date 20/09/2008 FromDate 16/09/2008 ToDate 20/09/2008 Remarks 11% Dividend

Corporate Structure
Religare Finvest Ltd Religare Wealth Management Services Ltd

Religare Securities Ltd

Religare Commodities Ltd

Religare Capital Markets Ltd

Religare Enterprises Ltd

Religare Finance Ltd

Religare Insurance Broking Ltd

Religare Venture Capital Pvt Ltd

Religare Realty Ltd

Business Structure
Client Interface
Retail Spectrum Institutional Spectrum Wealth Spectrum

T o cater to a large number of retail clients by offering all products under one roof through the Branch Network and Online mode Equity and Commodity T rading Personal Finance Services Mutual Funds Insurance Savings Products Personal Credit Personal Loans Loans against Shares Online Investment

T o Forge & build strong relationshipswith Corporate clients and Institutions Institutional Broking Investment Banking Merchant Banking T ransaction Advisory Corporate Finance

T o provide customized wealth advisory services to High Net worth (HNI) Individuals

Wealth Advisory Services Portfolio Management Services International Advisory Fund Management Service (AFMS) Priority Equity Client Services Arts Initiative

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.

Existing Banking Gateways

Citibank HDFC Bank ICICI Bank Axis Bank IndusInd Bank

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 Cost of Subscription Validity Period Brokerage on Delivery Trades Brokerage on Intraday Trades Brokerage on F&O Trades

Trump Plus Rs. 2,500 12 Months 0.25% 0.025% 0.025%

Trump Super Rs. 15,000 12 Months 0.15% 0.015% 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 Daily Free Delivery Volumes Rs. 3,00,000 Rs. 40,000

Calculation of Free Volumes NSE Segment cash Free Intraday/Derivative Volumes Free Delivery Volumes Futures T2T N.A. 10,000 Cash 100,000 10,000 T2T N.A. 10,000 300,000 40,000 100,000 100,000 10,000 N.A. NSE NSE BSE BSE Total

Brokerage (on daily volumes)# Intraday / Derivative Volume (in Rs.) Upto 1 Lakh 1 Lakh - 10 lakh 10 Lakh - 1 Cr 1 Cr - 3 Cr Above 3 Cr Brokerage Rate 0% 0.03% 0.02% 0.015% 0.01% Delivery Volume (in Rs.) Upto 10,000 10,000 - 1 Lakh 1 Lakh - 10 Lakh 10 Lakh - 30 Lakh Above 30 Lakh Brokerage Rate 0% 0.30% 0.20% 0.15% 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 IPOs 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.) Intraday Delivery Derivates 0.05% 0.50% 0.05% Monthly Turnover (1 Monthly Turnover (More cr. to 5 cr.) 0.04% 0.40% 0.04% than 5 cr.) 0.03% 0.30% 0.03%

RACE Freedom:
Brokerage (on daily volumes)# Intraday / Derivative Volume (in Rs.) Upto 1 Lakh 1 Lakh - 10 lakh 10 Lakh - 1 Cr 1 Cr - 3 Cr Above 3 Cr Brokerage Rate Nil 0.03% 0.02% 0.015% 0.01% Delivery Volume (in Rs.) Upto 10,000 10,000 - 1 Lakh 1 Lakh - 10 Lakh 10 Lakh - 30 Lakh Above 30 Lakh Brokerage Rate Nil 0.30% 0.20% 0.15% 0.10%

Other Charges:

NSE CHARGED CHARGES ON % CASH in in % % F & O BSE CASH

BROKERAG Service Tax E Other Charges (Stamp Charges+ Turnover TURNOVER Charges) ( Intra day ) STT (Intra day) (Applicable on Selling side 0.025 only) Other charges (Stamp+ Turnover TURNOVER 0.0135 Charges) (Delivery) STT (Delivery) TURNOVER 0.125 0.125 0.0137 0.017 0.025 (Jobbing) 0.0055 0.0041 (Jobbing) 0.0057 12.24 12.24 12.24

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 threeleaf 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 doesnt 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 clients 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 request@religare.in 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/cs 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 earn reward points?

Investment type/Instrument Equity Trading Basis of calculation Brokerage Points Earned 10

Value (Rs.)

20.00

Commodities Trading

15.00

Brokerage

10

IPO Application

20,000.00

Application Value

10

IPO Allotment

10,000.00

Allotment Value

10

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

Redemption Partners

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.

Where do People Invest Money?

Savings in banks account Fixed Deposits Postal Savings Insurance Real Estate Gold Stock Markets

What is a share? Having a share of a company means you own a part (SHARE) of the company

Shares as IPOs

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.

Stock Exchange Working..

Buyer of Share

Seller of Share

Broker

Broker

Stock Exchange

Money Share

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

NCDEX National Commodity & Derivative Exchange Limited

(Multi Commodity Exchange).

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 Fully automated processes flexible 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.

Equity vs. Other Asset Classes

Empirical study suggests that Equity markets have outperformed all other asset classes
Source: www.moneypore.com

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) will earn profits if the market crosses above Rs. 3550.

i.e., investor

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 earned by the seller of the call option.

profit

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) NAVs 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 Parents 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 S OC OM TC cancelled. TM modified.

For buy orders, this indicates a match. For sell orders, this indicates a match. This indicates an order was cancelled. This indicates an order was modified. For both buy and sell orders this indicates that a trade involving this order was

For both buy and sell orders this indicates that a trade involving this order was

Order Status The purpose of the Order Status (OS) is to look into the status of one of dealers 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.

Equity Broking
Key Facts
Over 190,000 Retail Equity clients, with growth rates over 200% Current market share is at 4.5% 5.5% Target increased presence in this segment both in India and abroad Doubling manpower by March 2008

Rising Equity Broking Turnover*

Rising Client Base

Key Facts
Presence of 300 Branches all India Internationally, established office in London, with the target of opening 7 offices abroad by March 2008 Targeting growth of 25% in brokerage by March 2008

* Figures in $ mn

Online Investment
Key Facts
Official Launch of E-broking in August 2006 Aggressive growth has been observed in the client base for online trading Targeting 300,000 online clients by the end of this financial year

Rising Number of Online Clients

Rising Turnover**

Key Facts
Acquired market share of 8% in internet trading volumes * Recently launched a revamped, unique 360 degrees customer centric online trading portal To increase team strength to 3000 employees purely for internet trading

* Of total internet trading volume of NSE As per the last published figures ** Figures in $ mn

Personal Credit
Personal Loans - Key Facts
Official Launch of Personal Loans in August 2006 Total number clients till date are nearly 1500 Targeting book size $110 mn by March 2008

Personal Loans - Scheme Wise Size**

LAS - Current and Projected Book Size**

Loans Against Shares - Key Facts

Current Book Size $144 mn, projected to increase to $ 284 mn by March 2008 Presence of 300 Branches all India, to double by March 2008 Total number clients till date are nearly 15,000

*Projected Figures **Figures in $ mn

Personal Financial Services

Key Facts
PFS caters to the financial needs of individuals by advising them on various financial plans Financial planning for retail investment is not widespread in India PFS was started to target the rapidly expanding middle net worth individuals (MNIs) in India Rapid rollout of PFS Products offering, such as mutual funds, life and general insurance, fixed income, small savings instruments, capital bonds and equity IPOs Expert group of Religares PFS advisors provide high quality customized solutions Dedicated Team of more than 200 advisors, to be expanded to 800 by March 2008

Rising MF Collections for both Debt & Equity*

Product Wise Clients

* Figures in $ mn

Investment Banking
Key Facts
Investment Banking Division covers three key areas Merchant Banking Transactions Advisory Services Corporate Finance License for Merchant Banking was received on 19th December, 2006 Handling a wide plethora of over 40 transactions in India The investment banking branch of Religare since its inception six months ago, has raised over $185 mn with an anticipated growth of over 100% Of $185 mn, $142 mn was raised through debt

International Equity
International Equity Portfolio Performance

Key Facts
Religare International Advisory Fund Management Service provides advisory services to clients who wish to profit from trading in International (currently limited to US) financial instruments Instruments available are US equities, Mutual funds and Debt, with funds being managed by the Fund Management Team based out of Delhi. Religare International Equity portfolio has shown much higher returns than DJIA and Nasdaq Composite Index International Equity Partner - Wall street*E

Portfolio Management Services

Key Facts
PMS provides customized portfolio services with a high level of client interaction Rigorous valuation disciplines have been put in place to minimize risk Extremely experienced and well networked team of individuals Product offerings entail four key schemes Panther, Tortoise, Elephant and Caterpillar Current Assets under Advice are $100 mn

Scheme-Wise AUM

Key Facts
Panther: Aggressive across sectors, High Risk- High Return Profile Tortoise: Gradual Growth, with a cautious approach; Medium Risk and Medium Return Elephant: Steady return over a long time period; Low Risk Low Return Caterpillar: Capital appreciation over a long period of time; High Risk- High Return Profile

Scheme-Wise Client Distribution

Priority Client Group

Key Facts
Priority Client Group (PCG) caters to high net worth individuals who actively invest in equity markets Clients have exclusive access to equity research reports fundamental & technical covering a wide spectrum of companies across sectors Dedicated team of 20 research analysts, 10 dealers and 10 relationship managers State-of-the-art infrastructure and superior execution systems to ensure faster execution of trades Nearly 700 clients Turnover for PCG is over $3.4 bn Currently operational in 5 locations with the existing retail setup
PCG Product Offerings Direct Equity Fundamental research reports Technical research reports NRI Direct Equitys and Derivatives Structured Products (Derivatives) Index Arbitrage Volatility Trading Directional & Non Directional Trading Structure Products .

Revenue Distribution

ICICI DIRECT.COM ACCOUNT OPENING Rs:- 1200* * with commodity and RS:- 750 without commodity BROKERAGE :- .75% effective yield :- .90% ANNUAL AMC IS RS:- 580/- PER ANNUAL NO DEALER SUPPORT PROVIDE CALL CENTRE NUMBER ONLY 4-20 TIME EXPOSURE NO TRADE REWARDS POINTS NO LIMIT AGAINST THE DEMAT HOLDING

RELIGAREONLINE.COM ACCOUNT OPENING Rs :- 299 with commodity* * will start shortly. 0.05% BROKERAGE SCHEME-on Intraday 0.50% ON Delivery NO AMC DEALER SUPPORT CALL CENTRE & DIRECT LINES ALSO 6-20 TIMES EXPOSURE TRADE REWARDS POINTS 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 DPs 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 :- 299 with Account Opening Rs:- 1000* commodity*

* Refundable against brokerga in month +1 0.10% BROKERAGE SCHEME-on Intraday 0.50% ON Delivery ANNUAL AMC IS RS:- 450/- PER ANNUAL NO INTEREST ON THE AMOUNT 3% per annual Exposure- 4 times Account access charges-500 p.m. adjust against brokerage NO TRADE REWARDS POINTS Classic account- Rs.750/NO LIVE STREAMING QUOTES

* will start shortly. 0.05% BROKERAGE SCHEME-on Intraday 0.50% ON Delivery NO AMC INTEREST ON THE MARGIN AMOUNT 3% per annual yield is high Exposure- 6-20 times NO ACC . TRADE REWARDS POINTS Classic account- Rs.1175/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 companys 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 :- 299 with Account Opening Rs:- 500 commodity* * will start shortly. 0.05% BROKERAGE SCHEME-on Intraday 0.50% ON Delivery NoInitial Margine is required. TRADE REWARDS POINTS Classic account- Rs.1175/-

0.10% BROKERAGE SCHEME-on Intraday 0.50% ON Delivery Initial Margine- Rs.-2500/NO TRADE REWARDS POINTS Classic account- Rs.500/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 No Minimum Margine is required.

securities

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 :- 299 with Account Opening Rs:- 500 Initial Margine- Rs.-5000/NO TRADE REWARDS POINTS commodity* * will start shortly. NoInitial Margine is required. TRADE REWARDS POINTS 0.05% BROKERAGE SCHEME-on

0.10% BROKERAGE SCHEME-on Intraday Intraday 0.50% ON Delivery 0.50% ON Delivery Minimum Margine-Rs.1000/- either in cash or in securities ANNUAL AMC IS RS:- 22.50/- PER ANNUAL No Minimum Margine is required. 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 Classic account- Rs.950/ANNUAL AMC - NO 0.10% BROKERAGE SCHEME-on Intraday 0.50% ON Delivery NO INTEREST ON THE AMOUNT 3% per annual NO TRADE REWARDS POINTS

Account Opening Rs :- 299 with commodity* * will start shortly. Classic account- Rs.1175/NO AMC 0.05% BROKERAGE SCHEME-on Intraday 0.50% ON Delivery INTEREST ON THE MARGIN AMOUNT 3% per annual yield is high 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 cant 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 is a unique offering from Religare that gives you dual Trade Rewards benefits of hassle free investment experience online and an opportunity to earn while you invest with us.

Exposure up to 20 Allowing you the freedom to trade without hassles throughout the day times on your margin* without having to worry about your cash margin. You can get exposure (on cash segment) as high as 20 times for intraday trades.

Even while you are waiting to make your next trade or online investment, Interest on cash your unutilized cash does not lie idle with us. You earn interest on your margin 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 its 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 BMC BSE CDSL CM Co. DCA DEA DP DPG DQ FI FII F&O IOC IPF

Additional Base Capital Base Minimum Capital Bombay Stock Exchange Central Depositories Services Ltd. Capital Market Company Department of Company Affairs Department of Economic Affairs Depository Participant Dominant Promoter Group Disclosed Quantity Financial Institution Foreign Institutional Investors Futures and Options Immediate or Cancel Investor Protection Fund

LTP MBP MTM

Last Trade Price Market By Price Mark To Market

NSE NSCCL NSDL NCFM SEBI

National Stock Exchange National Securities Clearing Corporation Limited National Securities Depository Ltd. NSE's Certification in Financial Markets Securities and Exchange Board of India

ULIPs Determined by the investor and can be Investment amounts modified as well

Mutual Funds Minimum investment amounts are determined by the fund house

No upper limits, expenses determined by Upper limits for expenses chargeable to Expenses the insurance company investors have been set by the regulator

Portfolio disclosure Modifying asset allocation

Not mandatory*

Quarterly disclosures are mandatory

Generally permitted for Entry/exit loads have to be borne by the free or at a nominal cost investor Section 80C benefits are available on all ULIP Section 80C benefits are available only on investments in tax-saving funds

Tax benefits

investments

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 record.

track

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. 2. Fundamental Analysis 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 doesnt 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 Current

EPS last years numbers and the only actual EPS EPS this years numbers, which are still projections EPS future numbers, which are obviously projections

Forward

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 doesnt tell the whole story (if it did, we wouldnt need all the other numbers.)

The P/E looks at the relationship between the stock price and the companys 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 companys 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 stocks 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 dads 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 dads 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 cant 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 companys 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 _______________________________________ Address: ________________________________________________________________________ MTF Other:

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 (d) tax savings schemes

(b)debt schemes

(c) balanced 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 opportunitya. Mutual Fund b. gold /silver c. d. e. f. Post office savings real estate Insurance Shares

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)

Are you comfortable with investing in the stock market? a )highly comfortable c ) undecided b) comfortable 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 Mutual funds Share LIC RBI bond Postal & saving Fixed deposit Others

No. of people 21 26 42 12 16 36 12

Percentage 42% 52% 84% 24% 32% 72% 24%

Fixed deposit, 36 Postal & saving , 16

Others, 12

Mutual funds, 21 Share, 26

RBI bond, 12

LIC, 42

Mutual funds Postal & saving

Share Fixed deposit

LIC Others

RBI bond

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 Safety High rate of return Risk Brand image

No. of people 43 29 38 22

Percentage 86% 58% 76% 44%

44% 76% Percentage 58% 86% 22 No. of people 38 29 43 0 Safety 10 20 Risk 30 40 Brand image 50

High rate of return

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 Non awareness Risk involved Bad servicing No. of people 26 37 16 Percentage 52% 74% 32%

100% 80% 60% 40% 20% 0%

16

32%

37

74%

26

52%

No. of people Non awareness

Percentage 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 Religare Icicidirect.com India bulls Share khan HDFC securities Kotak Securities Reliance money Others No. of people 24 41 32 22 19 26 23 12 Percentage 48% 82% 64% 44% 38% 52% 46% 24%

Awareness about share broking houses

100% 80% 60% 40% 20% 0% Percentage Religare HDFC securities Icicidirect.com Kotak Securities India bulls Reliance money Share khan Others 48% 82% 64% 44% 52% 38% 46% 24%

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.

Option Yes No

Are you interested in doing share trading through Religare? No. of people 29 21 Percentage 58% 42%

Percentage

No, 42% Yes, 58%

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 Offline share trading Online share trading No. of people 33 17 Percentage 66% 34%

Percentage

Online share Trading

34%

Offline share Trading

66%

0%

10%

20%

30%

40%

50%

60%

70%

Percentage

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.

 In terms of exposure, from where would you like to do share trading in Religare?
Option Offline share trading Online share trading No. of people 24 26 Percentage 48% 52%

Percentage 52% 52% 51% 50% 49% 48% 47% 46% Offline share trading Online share trading Percentage 48%

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 Online share trading Offline share trading

No. of people 34 16

Percentage 68% 32%

Percentage

32%

68%

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 Online share trading Offline share trading No. of people 34 16 Percentage 68% 32%

32% 16

34 68%

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 Online share trading Offline share trading

No. of people 41 9

Percentage 82% 18%

Percentage

Offline share trading

18%

Online share trading

82%

0%

20%

40%

60%

80%

100%

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 Online share trading Offline share trading

No. of people 37 13

Percentage 74% 26%

Percentage

Offline share trading

26%

Online share trading 0% 20% 40% 60%

74%

80%

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. Religares 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 companys 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 Religares 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 its 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 dont 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 dont 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.