SUMMER TRAINING PROJECT REPORT

2008-2010

Corporate Guide:- Faculty Guide:-

Miss Monika Mishra Miss Nida Afsar
Center manager Lecturer,Finance
Agra

Submitted in Partial Fulfillment for the Award of

Degree
MASTER IN BUSINESS ADMNISTRATION

Submitted by: - Vikas Tiwari

IVS Institute of Technology

TABLE OF CONTENTS

1
 Obje

ctive of Study…………………………………………05

 Abo

ut the Company………………………………………..07

 Intro

duction to the Topic………………………………….45

 Board of Director……………………………………………64

 Research Methodology………………………………………71

 Data

Analysis & Interpretation……………………………75

 Obse

rvation………………………………………………….82

 Limi

tations of the study…………………………………….87

 Recommendations & Suggestions…………………...…….…84

 Conclusion……………………………………………..………89

 Bibliography……………………………………………..……91

 Appendix…………………………………………………...….93

2
 DECLARATION

I Vikas Tiwari do here by declare that the project work entitle on the “D-mat
Account with Reliance Money”at DELHI is the original work done by me.

This project report presented as a partial fulfillment requirement for the degree of
Master of Business administration.

VIKAS TIWARI
IVS INSTITUTUE OF
TECHNOLOGY
MATHURA
3
 ACKNOWLEDGEMENT

It was a great opportunity for me to work with Reliance money, pioneers in the
field of stock trading, a part of Reliance Capital Ltd. I am extremely grateful to the
entire team of Reliance Money at Agra who have shared their experience and
knowledge with me and without whom the completion of this project would have
been virtually impossible.
I am gratified to Mr Brijesh Singh for their earnest coordination owing to which,
I had the leg-up of undertaking the internship at the prominent organization, Reliance
Money Pvt ltd.
This is to express my sincere gratitude and heartfelt appreciation for all of the
help,cooperation and patient guidance provided by Miss Nida Afsar( Finance
Lecturer), Miss. Monika Mishra (Center Manager of Reliance Money, Agra) and
company project guide, who has provided me the necessary information and his
valuable suggestion and a good support in understanding the basics of the Reliance
Money easily.
I feel great pleasure to cordial thanks Mr. Prabhat Pun (Cluster Head of Reliance
Money).
Last but not least, I would like to extend my heartfelt gratitude to all those
who directly or indirectly responsible for the successful completion of this project.

4
 Vikas tiwari

IVS INSTITUTE OF TECHNOLOGY

5
 OBJECTIVE

• To find the market potential and market penetration of Reliance

Money product offerings in NEW DELHI
• To collect the real time information about preference level of
customers using D-mat account and their inclination towards
various other brokerage firms e.g. Indiabulls, Sharekhan,
Indiainfoline, Religare, Alankit , Unicon.ICICI Direct
• To expand the market penetration of Reliance money.
• To provide pricing strategy of competitors to fight cut throat
competition.
• To increase the product awareness of Reliance money as single
window shop for investment solutions.

6
7
 Executive Summary

Investment is a serious Proposition; one has to look into various factors before
deciding on the instrument in which to invest. To save money is not enough. One must
invest wisely, and regularly to get the maximum benefits. Hence, the concept of
investment in profitable financial instruments comes into focus.

To cope up with inflation, one has to invest wisely so that he can cope up with
uncertain future, for that you have to invest in investment opportunities available,
before that one has take into consideration the following points before investing your
savings:

Consider your investment objective- what are you saving for?

Define your investment horizon, or the time that you want to stay invested....

Determine your risk profile based on how much volatility you can take in your
portfolio. One has to take a major decision that how to save money. But after saving
the imperative issues that approach in one’s mind that is:

8
  What are the sources of income?
 Where to invest those incomes?
 And how to earn maximum revenues from it.
It’s an adage that earning wealth is not tough but the thing which matters that is how
to hold on to and enhance that wealth.

The project dealt with various fields like:

1. Trading and Demat account

2. Mutual Funds
3. Life Insurance

Thus it gave trainees the opportunity to learn about all the

products and with the range of products Reliance money offered it
made the task a bit easier as we could fulfill the need of the customer
in a better way.

Our task was divided in 4 phases:

1. Product knowledge: This included the theoretical knowledge about

the field and products which needed to be marketed.

2. Pitching in retail sector: This included the implementation of the

knowledge imparted to us and the test of our marketing skills. Initially
we were accompanied by other sales executive so that we can learn how
to deal with the customers and understand their need. This also
enhanced our interpersonal skills and confidence level.

9
3. Implementation in retail sector and pitching in corporate: By the
start of this phase we were confident enough about the pitching and
fulfilling the needs of the customer in the retail sector. This also
included of the ways we should pitch the corporate.

4. Implementation at corporate levels: This included the

implementation of the all the knowledge and ways learnt for the
pitching and extracting business out of the corporate.

With the end of 6 weeks every phase was completed and it gave
us the real experience of retail as well as corporate world.
Training Manual – Equity Markets & Scope

Slide 1

Equity Ma
Objective – To cover Equity Aspects and Scope for the Headstart to Leadership
Program as per the PPT part of L&D Product & P

10
rocess Repository

INTRODUCTION

Have slide 1 on during the discussion to be followed

Meet & Greet the participants in the session – Conduct an activity to familiarize you
with the crowd. Introduce yourself and your role within the company. Your
responsibilities, The business that your area / zone has generated, the business that
your cluster has generated (If you have the information)

Talk to participants about session related expectation –

 Behaviour
 Absenteeism – Related to them getting the certificate (If attendance is less
than 95% the certificate would not be issued)
 Ask Questions – Encourage participants to ask questions
 Discipline – Maintain silence during the session, mobiles to be switched off,
no side talks, etc.

Discuss session flow -

Slide 2 –

11
 Objectives & Agenda

 Journey of the Indian Stock Markets

 Difference Between Primary & Second
 Markets Around
Read out the points to the participants to give them a brief of the flow of the

presentation Equity Markets
Slide 3
 The Cycle of Market Emotions
 Sensex Highlights Over the Years
 Financial Saving - House Hold
 Return on equity: India and Emerging M
 Sectoral growth – Market expectations
 Trade in Equity Whatwith Reliance is the single Money w
 Comparison with Online Brokers
 Franchisee Model
 Our trading Platforms
All is based on the communication flow in the market.
 Identifying your clients and challengesI
12
Company Information – Emphasize on – should know factors before investing
-performance of the company over the last 3-5 years. Comparison with other players,

News – Both print and media channels – Newspapers, Magazines, TV / Radio etc.

Events – Country and global wide events – political disturbances, Economical

Performance & Impacts etc.

External factors – Other industries, related industries to your segment that could
impact you as well – e.g. – The Animal Husbandry Enterprise part of the Agricultural
Industry Could impact Milk product based Industries

Technical – Product know how, market performance should be known, track of stocks
traded on

Internal Information – management changes and impact. Business changes and

impact, new business Models, New product lines being launched, Quote an example
of a launch of a product – e.g. NANO and it’s impact on the auto industry

Slide 4

13
 "If I give you one dollar an
us will only have one do

Read the quote and explain the concept of ideas related to information (if you
have information you would get more ideas) in turn related to market (changes
are what run the markets)

But if you give me one idea

will both have two ideas

Slide 5

14
 Journey of the Indian Stock Mar

Slide 6

Wall Street was built in 1644, on thelower end

of Manhattan "Island" by theDutch to protect
against British attacks.

Theworld's foremost marketplaceNew York

Stock Exchange(NYSE), started its trading
under a tree (now known as 68 Wall Street) over
200 years ago
Address the participants by letting them know –

15
Reason for half a dozen brokers:

1830's Business on corporate stocks and shares in Bank and Cotton presses started in
Bombay.

More people in the brokerage business led to results in the coming years:

1860-1865 Cotton price bubble as a result of the American Civil War

1870 - 90's Sharp increase in share prices of jute industries followed by a boom in tea
stocks and coal

Slide 7

•1860's: The number of brokers inc

1860-61:The American Civil War broke out which caus

the beginning of the "Share Mania" in India 1862- 63. T

Slide 8

16
Slide 9

Difference Between Primary & Se

Ma

Companies want to raise money to

expand their business
Basic Definition –

Prim
Company releases IPO.
•Bombay Stock
17 Exchangeplayed a pivotal role i

•The Exchange has a nation-wide reach with a p

A primary market is the main market to which you are selling.

A secondary market is an additional market to which you are selling

In the primary market, securities are offered to public for subscription for the purpose
of raising capital or fund. Secondary market is an equity trading venue in which
already existing/pre-issued securities are traded among investors. Secondary market
could be either auction or dealer market. While stock exchange is the part of an
auction market, Over-the-Counter (OTC) is a part of the dealer market.

A primary offering, such as with a corporate bond, means you are buying it directly
from the issuer, at par value, usually. A secondary market is where you sell or buy
existing issues. I.E. If you bought a bond last year, now need to get your principal,
you can sell it in the secondary market. You may not get par value. If rates are up
since you bought the bond, then you will likely have to sell it at a discount to be able
to get rid of it. If rates have fallen since you bought it, you could get a premium for it.

For Primary Markets you can give the example of Reliance Power –

Investors submit application forms for the Reliance Power Initial Public Offering at
an outlet for Reliance Money, an arm of the Anil Dhirubhai Ambani owned Reliance
Capital in Mumbai, India, Tuesday, Jan. 15, 2008. Investors took up all available
shares in the initial public offering of India's Reliance Power within a minute
Tuesday, raising some US$3 billion (euro2. 0 billion) for the company, officials said,
making it the country's largest IPO ever.

Slide 10

18
 Markets Around (Major
INDIAN MARKETS:

Nifty – 50 stocks representing various se

Nifty Fifty was an informal term used to refer to 50 popular large cap stocks on the
Sensex – 30 stocks representing various
New York Stock

Exchange in the 1960s and 1970s that were widely regarded as solid buy and hold
growth stocks.

The fifty are credited with propelling the bull market of the early 1970s. Most are still

WORLD MARKETS:
solid performers,

although a few are now defunct or otherwise worthless.

US : DOW JONES, NASDAQ, S& P 500

BSE Sensex or Bombay Stock Exchange Sensitive Index is a value-weighted index
composed of 30 stocks started in 01 of Jan, 1986. It consists of the 30 largest and
most actively traded stocks, representative of various sectors, on the Bombay Stock
UK : FTSE 100
Exchange. These companies account for around one-fifth of the market capitalization
of the BSE. The base value of the sensex is 100 on April 1, 1979, and the base year of
BSE-SENSEX is 1978-79.
ASIAN : NIKKEI 225, HANG SANG

EUROPE : CAC
19 40
NASDAQ – The NASDAQ (acronym of National Association of Securities Dealers
Automated Quotations) is an American stock exchange. It is the largest electronic
screen-based equity securities trading market in the United States. With
approximately 3,800 companies, it has more trading volume per hour than any other
stock exchange in the world.

It was founded in 1971 by the National Association of Securities Dealers (NASD),

who divested themselves of it in a series of sales in 2000 and 2001. It is owned and
operated by the NASDAQ OMX Group, the stock of which was listed on its own
stock exchange in 2002, and is monitored by the Securities and Exchange
Commission (SEC)

Slide 11

Various Indian Stock Exchange Form

Slide 12

Allahabad Stock Exchange Hydera

20
 The Cycle of Market Emotions

Point of Maximum Risk

The reason for running this graphic of the Cycle of Market Emotions is because it's so
Anxiety
Euphoria
central to understanding market psychology and investor emotions during bull
markets and bear markets.
Thrill Denial
I don't know where most people are on this curve, but the odds are it's somewhere
between Denial and Hope. That covers a lot of ground and you could argue the
distinction between the terms desperation, despondency (sadness, misery) and
Excitement
depression is somewhat arbitrary.

The point is that we are certainly not at the cycle's top emotion, Euphoria, which is
when most of us pile in to trends like technology and Emerging Markets, oblivious to
the fact that's actually the point of maximum financial risk. You have to wonder how
Wow I feel great
many times we have to experience this cycle before we finally get it right.
Optimism about this
investment
It is human nature to put too much weight on current conditions and extrapolate them
far into the future." Today, the market prices of many stocks are "well below the
underlying value of the business.

Slide 13

21 “may
mark
aren’t
 Sensex Highlights Over the Years
22000
21000
20000
19000 April 28, 1992:
The CRB Scam
Sensex fall of 570 pts.
18000 Uncovered May 200
Sept 20
Harshad Mehta Scam droppe
17000 Biggest ever
coallit
1 6 0 0points
Important 0 to be covered during this slide – Gain of 6
los
Heavy inv
15000 con
of F
14000
Here is a timeline on the rise and rise of the Sensex through Indian stock market
13000
history.
12000
•1 11000,
0 0 0July 25, 1990 - On July 25, 1990, the Sensex touched the four-digit
Feb 1992:
0 0 0for the first time and closed at 1,001 in the wake of a goodSensex
1 0figure monsoon crosses
and excellent corporate results.
9000 3000 mark

• 82000,
0 0 0January 15, 1992 - On January 15, 1992, the Sensex crossed the 2,000-
7mark
0 0 0and closed at 2,020 followed by the liberal economic policy initiatives
6undertaken
0 0 0 by the then finance minister and current Prime Minister Dr
5Manmohan
0 0 0 Singh.
4000
• 3000, February 29, 1992 - On February 29, 1992, the Sensex surged past the
33000
0 0 0mark in the wake of the market-friendly Budget announced by
2Manmohan
0 0 0 Singh.
1000
0 22
91

92

93

94

95

96

97
91

92

93

94

95

96

97

98
 • 4000, March 30, 1992 - On March 30, 1992, the Sensex crossed the 4,000-
mark and closed at 4,091 on the expectations of a liberal export-import policy.
It was then that the Harshad Mehta scam hit the markets and Sensex witnessed
unabated selling.

Harshad Mehta Scam –

Harshad Mehta was an Indian stockbroker and is alleged to have engineered the rise
in the BSE stock exchange in the year 1992. Exploiting several loopholes in the
banking system, Harshad and his associates siphoned off funds from inter-bank
transactions and bought shares heavily at a premium across many segments, triggering
a rise in the Sensex. When the scheme was exposed, the banks started demanding the
money back, causing the collapse. He was later charged with 72 criminal offenses and
more than 600 civil action suits were filed against him. He died in 2002 with many
litigations still pending against him.

Mehta first started working as a dispatch clerk in the New India Assurance Company.
Over the years, he got interested in the stock markets and along with brother Ashwin,
who by then had left his job with the Industrial Credit and Investment Corporation of
India, started investing heavily in the stock market. The year was 1990. The shares
which attracted attention were those of Associated Cement Company (ACC). The
price of ACC was bid up to Rs 10,000. For those who asked, Mehta had the
replacement cost theory as an explanation. The theory basically argues that old
companies should be valued on the basis of the amount of money which would be
required to create another such company.

On April 23, 1992, journalist Sucheta Dalal in a column in The Times of India,
exposed the dubious ways of Harshad Metha. The broker was dipping illegally into
the banking system to finance his buying.

“In 1992, when I broke the story about the Rs 600 crore that he had swiped from the
State Bank of India, it was his visits to the bank’s headquarters in a flashy Toyota
Lexus that was the tip-off. Those days, the Lexus had just been launched in the

23
international market and importing it cost a neat package,” Dalal wrote in one of her
columns later.

The authors explain: “The crucial mechanism through which the scam was effected
was the ready forward (RF) deal. The RF is in essence a secured short-term (typically
15-day) loan from one bank to another. Crudely put, the bank lends against
government securities just as a pawnbroker lends against jewellery….The borrowing
bank actually sells the securities to the lending bank and buys them back at the end of
the period of the loan, typically at a slightly higher price.”

It was this ready forward deal that Harshad Mehta and his cronies used with great
success to channel money from the banking system.

A typical ready forward deal involved two banks brought together by a broker in lieu
of a commission. The broker handles neither the cash nor the securities, though that
wasn’t the case in the lead-up to the scam.

“In this settlement process, deliveries of securities and payments were made through
the broker. That is, the seller handed over the securities to the broker, who passed
them to the buyer, while the buyer gave the cheque to the broker, who then made the
payment to the seller.

In this settlement process, the buyer and the seller might not even know whom they
had traded with, either being know only to the broker.”

This the brokers could manage primarily because by now they had become market
makers and had started trading on their account. To keep up a semblance of legality,
they pretended to be undertaking the transactions on behalf of a bank.

Another instrument used in a big way was the bank receipt (BR). In a ready forward
deal, securities were not moved back and forth in actuality. Instead, the borrower, i.e.
the seller of securities, gave the buyer of the securities a BR.

As the authors write, a BR “confirms the sale of securities. It acts as a receipt for the
money received by the selling bank; hence the name - bank receipt. It promises to

24
deliver the securities to the buyer. It also states that in the mean time, the seller holds
the securities in trust of the buyer.”

Having figured this out, Metha needed banks that could issue fake BRs or BRs not
backed by any government securities. “Two small and little known banks - the Bank
of Karad (BOK) and the Metorpolitan Co-operative Bank (MCB) - came in handy for
this purpose. These banks were willing to issue BRs as and when required, for a fee,”
the authors point out.

Once these fake BRs were issued, they were passed on to other banks and the banks in
turn gave money to Mehta, obviously assuming that they were lending against
government securities when this was not really the case. This money was used to
drive up the prices of stocks in the stock market. When time came to return the
money, the shares were sold for a profit and the BR was retired. The money due to the
bank was returned.

The game went on as long as the stock prices kept going up, and no one had a clue
about Mehta’s modus operandi. Once the scam was exposed, though, a lot of banks
were left holding BRs which did not have any value - the banking system had been
swindled of a whopping Rs 4,000 crore.

CRB Scam –

Important dates to Remember –

25
May 2006 - On May 22, 2006, the Sensex plunged by 1100 points during intra-day
trading, leading to the suspension of trading for the first time since May 17,
2004. The volatility of the Sensex had caused investors to lose Rs 6 lakh
crore (US$131 billion) within seven trading sessions. The Finance Minister of
India, P. Chidambaram, made an unscheduled press statement when trading
was suspended to assure investors that nothing was wrong with the
fundamentals of the economy, and advised retail investors to stay invested.
When trading resumed after the reassurances of the Reserve Bank of India
and the Securities and Exchange Board of India (SEBI), the Sensex
managed to move up 700 points, still 450 points in the red.
July 6, 2007 - The Sensex on July 6, 2007 crossed another milestone and reached a
magic figure of 15,000. it took almost 7 month and 1 day to touch such a historic
milestone. Coincidentally Sachin Tendulkar achieved the same mark (15000 runs in
international cricket) around the same time! (The usual refrain of the time was,
"Sachin, make runs so Sensex rises!")

Effects of the Subprime crisis in the U.S

On July 23, 2007, the Sensex touched a new high of 15,733 points. On July 27, 2007
the Sensex witnessed a huge correction because of selling by Foreign Institutional
Investors and global cues to come back to 15,160 points by noon. Following global
cues and heavy selling in the international markets, the BSE Sensex fell by 615 points
in a single day on August 1, 2007.

September 19, 2007- The Sensex on September 19, 2007 crossed the 16,000 mark
and reached a historic peak of 16322 while closing. The bull hits because of the rate
cut of 50 bit/s in the discount rate by the Fed chief Ben Bernanke in US.

September 26, 2007- The Sensex on September 26, 2007 crossed the 17,000 mark for
the first time, creating a record for the second fastest 1000 point gain in just 5 trading
sessions. It failed however to sustain the momentum and closed below 17000. The
Sensex closed above 17000 for the first time on the following day. It was also during
this record bull run that the Sensex for the first time zoomed ahead of the Nikkei of
Japan.

26
October 15, 2007- The Sensex crossed the 19k mark for the first time on October 15,
2007. It took just 4 days to reach from 18k to 19k. This is the fastest 1000 points rally
ever and also the 640 point rally was the second highest single day rally in absolute
terms. This made it a record 3000 point rally in 17 trading sessions overall.

October 29, 2007- The Sensex crossed the 20k mark for the first time with a massive
734.5 point gain but closed below the 20k mark. It took 11 days to reach from 19k to
20k. The journey of the last 10,000 points was covered in just 869 sessions as against
7,297 sessions taken to touch the 10,000 mark from 1,000 levels. In 2007 alone, there
were six 1,000-point rallies for the Sensex

Slide 14

Financial Saving of the House H

Investment Areas
been tremendous growth
8.2
17.5
2007-08

-3.7of this slide needs to be the growth in the Shares & Debentures area.
The focus
Shares & debentures

10.5
10.9

9.2
14.9
2006-07

5.3
6.6 27

8.6
Slide 15

Relative Growth in Various Indu

Growth in

40
This graph primarily represents the various sectors.
35
Acceleration – where industries have grown by a huge margin and there is more scope
of growth
30
22.4

25
13.4
Deceleration – Where industries could have grown or not and would not have huge
In %age

growth 20
15
Negative – Current and scope of growth is less – e.g Metal Products & Parts
6.8
8.0

10
5.3

16.6
15.0
0.9

her & fur 0 1.1

5
cco and 4.5
wood 2.4

facturing 2.4

0
-0.4

icals and

sic metal

28
nd other
ble fibre
ood and

ther and
roducts,

erages,

nd alloy
oducts
stries

mical

-5
elated

ducts
tiles
ther
Slide 16

GDP growth to maintain its momen

 Manufacturing to witness strong growth ah
back of
- Infrastructure spending of govt.
- Capex by industries
There is robust economy growth coming ahead as and the India Capex has also been
shown in the other graphs reflecting various sectors. Self explanatory.

India Inc Capex (2007 - 2012)

6000

5000

4000
Rs in Billion

3000

2000
29
1000

0
r

r
l
t

t
Slide 17

Return on equity: India and Em

This is just to show that Return of equity in India is higher as compared to

emerging markets
Emerging markets, e.g. – Philippines, Thai stocks, Baht, Polish Zloty, Turkish ISE
100 etc.

30
Slide 18

Slide 19

Equity Marke

31
 US & India Movement of Stock Ma

Unite States
Real Time T
The usage of computers started very early in the US while very late in India.
Usage of Computers in Exchanges
Online trad
In financial markets, Black Monday refers to Monday, October 19, 1987, when stock
Black Monday (1987)
markets around the world crashed, shedding a huge value in a very short time. The Flat Fee Str
crash began in Hong Kong, spread west through international time zones to Europe,
hitting the United1970 - 1990
States after other markets had already declined by a significant
margin. The Dow Jones Industrial Average (DJIA) dropped by 508 points to 1738.74
(22.61%). By the end of October, stock markets in Hong Kong had fallen 45.8%,
Australia 41.8%, Spain 31%, the United Kingdom 26.4%, the United States 22.68%,
and Canada 22.5%. New Zealand's market was hit especially hard, falling about 60%
from its 1987 peak, and taking several years to recover. (The terms Black Monday
and Black Tuesday are also applied to October 28 and 29, 1929, which occurred after
Black Thursday on October 24, which started the Stock Market Crash of 1929. In
Australia and New Zealand the 1987 crash is also referred to as Black Tuesday
because of the timezone difference.)
Neat Bolt
Real Time Ticker Introduced system
Old Methodology – no transparency in
share prices 32 Emerging
1978-79 – Base year of sensex,
Dot com b
defined to be 100
Flat fee structure was introduced during this era in the US – brokers started charging a
flat fee structure. Customers started trading online during this era.

India

No transparency till late 1900’s. Emerging of Brokers during this entire period till
2000 and still running.

Neat BOLT introduced in the year 1995.

The "dot-com bubble" (or sometimes the "I.T. bubble") was a speculative bubble
covering roughly 1995–2001 (with a climax on March 10, 2000 with the NASDAQ
peaking at 5132.52) during which stock markets in Western nations saw their value
increase rapidly from growth in the new Internet sector and related fields.
The period was marked by the founding (and, in many cases, spectacular failure) of a
group of new Internet-based companies commonly referred to as dot-coms.
Companies were seeing their stock prices shoot up if they simply added an "e-" prefix
to their name and/or a ".com" to the end, which one author called "prefix investing".
A combination of rapidly increasing stock prices, individual speculation in stocks, and
widely available venture capital created an exuberant environment in which many of
these businesses dismissed standard business models, focusing on increasing market
share at the expense of the bottom line.

The low interest rates in 1998–99 helped increase the start-up capital amounts.
Although a number of these new entrepreneurs had realistic plans and administrative
ability, many more of them lacked these characteristics but were able to sell their
ideas to investors because of the novelty of the dot-com concept.

Slide 20

33
 Brokerage in Various Markets

Before

United States
While the term stockbroker is still in use, it is more commonly referred to as simply
"broker", "registered rep" or simply "rep"-- shortened versions of the official FINRA
(pronounced "FIN-ra") designation "Registered Representative". This designation is
obtained by an individual passing the FINRA General Securities Representative C
Examination (also known as the "Series 7 exam") and being employed ("associated
with") a registered Broker-dealer also called a brokerage firm; the firm is typically a
FINRA "member" firm.
A
BROKER
More restrictive FINRA licenses or series exams exist for brokers or reps who do not
need the full array of capabilities with the Series 7. See the FINRA List of Securities
Examinations. And variable products such as a variable annuity contract or variable
universal life insurance policy typically require the broker to also have one or another
state insurance department licenses.

United Kingdom
In the UK, brokers are required to pass the XII (Securities and Investment Institute)
Certificate in Securities, this qualification is achieved by passing two exams: Either
Unit 1: FBI Financial regulations or Unit 10 Principles of Financial Regulation for
MiFID compliant retail trading, and either Unit 2: Securities, Unit 3: Derivatives or

34

No Transparency
Services Provided
Unit 4: for both Securities and Derivatives. Passing Unit 10 or Unit 52 identifies
individuals as having attained FSA Approved Person Status.

In 1995 there were 981 companies with revenues of $176.26 billion and 429,900
employees. In that year U.S. corporate stock and bond sales rose to $709.3 billion
from $705.7 billion in 1994, due to a robust calendar of common-stock offerings.
Behind the strong financing activity was a blend of lower interest rates and higher
stock prices, which together spurred more and more individual investors to buy
common stock. One of the most vibrant areas of the common-stock underwriting
market was the initial public offering, as 572 companies came to market for the first
time in 1995. Total debt sales, including convertible offerings, slipped to nearly $611
billion in 1995 from $628.8 billion in 1994. But asset-backed offerings jumped 42
percent to $107.1 billion.

In the past, investors had to call up their brokers and place an order on the phone. The
broker would then enter the order in their system which was linked to trading floors
and exchanges.
With the advent of the internet, investors can now enter orders directly online, or even
trade with other investors via ECN's (electronic communication networks). Some
orders entered online are still routed through the broker allowing agents to approve or
monitor the trades. This step assists in the protection of both the client and brokerage
firm from unlawful or incorrect trades which could affect the client’s portfolio or the
broker’s license.
Online brokers are most often referred to as discount brokers, due to their lower fees
as opposed to full service brokers who also give advice to clients.

Slide 21

35
 NEAT
Mo

BROKER

Mumbai: : In technology terms, how are the two major exchanges of India—National
Stock Exchange (NSE) and Bombay Stock Exchange—pitted against each other?
Here’s aInform ation
reality check. Access
The older of the two, BSE launched the electronic trading platform for the cash
segment—BSE On Line Trading System (BOLT)—in 1995. For BOLT, BSE uses
Tandem Fault Tolerant System consisting of 26 central processing units (CPUs).
Tandem systems are high performance trading engines enabling huge volumes
without any downtime. This electronic trading platform is available to members and
their hierarchy through a nationwide network spanning over 360 cities, through over
7,000 trader work stations on campus LAN, leased lines and V-SATs for upcountry
members.

Stock Exchange
According to the BSE spokesperson, the BSE Private Network in one of the largest
and most sophisticated networks in Asia Pacific running multiple services from
trading to settlement.

36

Information with the Bro

As against the BSE technology, the NSE trading system is implemented on the
mainframe Continuum series of machine, which is supplied by Stratus Computers.
The Stratus machines provide hardware-fault tolerance and therefore are able to
sustain any single point failure. The operating system offers transaction protection,
robust inter-process communication and network interface.

Slide 22

37
 2007 – Reliance Money Ventures

Slide 23

Introducing Fla

Slide 24

38
 Various Business Models
 Apart form the rest of the models followed
international markets the Franchisee Mod
world revolves around 4 types as mention
visuals

Reliance Money Business Model

As per The Financial Express and the new trend seen in the markets - Broking firms
have started opting for franchise route to weather meltdown.

Franchising refers to the methods of practicing and using another person's business
philosophy. The franchisor grants the independent operator the right to distribute its
products, techniques, and trademarks for a percentage of gross monthly sales and a
royalty fee. Various tangibles and intangibles such as national or international
advertising, training, and other support services are commonly made available by the

Capital Market
franchisor. Agreements typically last from five to thirty years, with premature
cancellations or terminations of most contracts bearing serious consequences for
Vertical
franchisees. Househol
Through Franchisee Through suitcas
Partners
Franchising & to
dates back Remisars / Isaac Singer, who made improvements
at least the 1850s; Personnel,
to Hous
agents
an existing model of a sewing machine, wanted to increase the distribution of his
sewing machines. His effort, though unsuccessful in the long run, was among the first
franchising efforts in the United States. A later example of franchising was John S.
Pemberton's successful franchising of Coca-Cola. Early American examples include
the telegraph system, which was operated by various railroad companies but
controlled by Western Union, and exclusive agreements between automobile

Direct Vertical
Emerging
39
Through RMoney employee sales
force, Walk In at branches, Vertical
manufacturers and operators of local dealerships. Earlier models of product
franchising collected royalties or fees on a product basis and not on the gross sales of
the business operations of the franchisees.

What Type of Franchise Arrangement is Best for You?

Introducing the right level of franchising, to meet your needs, is almost as important
as introducing the right franchise. Below are the four levels of franchising, which
include information on the territory specifics, the required level of participation, and
the typical liquid capital requirements. It is best to consider all aspects of each level,
before selecting a franchise.
1.) Single-Unit Franchise
2.) Multi-Unit Franchise
3.) Area Development Franchise
4.) Master Franchise

Master Franchise
With a Master Franchise, you own an exclusive territory which allows you to receive
franchise fees from franchises sold as well as ongoing royalties or possibly even
residual income from overrides on product sales.
This can be a low overhead business with very few employees needed and yet can be
built to where the Master Franchise is worth millions of dollars.
Single-Unit Franchise, Multi-Unit Franchise, Area Development Franchise
Start with one unit and build up to several units. Control your own mini-empire and
achieve financial independence in the quickest way. You'll receive excellent support
in all areas of the business operation with a minimal out-of-pocket investment.

Reliance Money Business Models – Capital Market, Household, Direct & Emerging
Markets

Slide 25

40
 Capital Market Vertical
Through Franchisee Partners &
Remisars / agents

Slide 26

Requirements to become a franchisee:

1.) A nominal deposit as security

2.) Office Space
Franchisee Model - Example
3.) FOS (feet On street)
4.) Dealers
5.) Tele callers
Franchisee Partners
L
Benefits & Support provided:

1.) Brand Name

This2.)
is an Marketing support
example of the Franchisee model – showcasing how much can a franchisee Assum
Role on Account Opening – Acquire
earn.
3.) Research & Technical as many customersAssistance as possible
Slide 27
4.) Cross Selling Avenues
Franchisee
5.) Training to franchisee and staff
41
 Direct Vertical
Through RMoney employee sales
force, Walk In at branches,
Slide 28 seminars, road shows etc.

Household Vertical
Seminars Road
Through suitcase Shows
Agents, Retired
Personnel, House wives etc.
Slide 29

42
 Emerging Markets
Through Gram Panchayat, Co-
operative societies, etc.
Slide 30 – 36 are very much self explanatory

C
S
Gram Panchayat Agriculturist
Slide 37

43
 Comparison with Online Brokers

Online Account Annual Brokera

Broker Opening Maintenanc on deliv
Charge e Charges shares
(Rs) (Rs) Transa

Almondz Capital 500 None 0.0

Markets

Angel
Here focus Broking
on Reliance Money Brokerage 740 300 From 2nd 0.0
Year

Kota
Slide 38 – 41k–Sec
onlyurities 750the trading platforms360
discuss that this is how look like – 0.059 –
more would be shown once you take them through the live trading session.

Geojit Financial 600 300 0.3

Services

Religare 999 250 0.0

Reliance Money 750 200 on HUF, 0.0

Individual &
Trust
Sharekhan 750 350 from 2nd yrs 0.0

5 paisa.com 555 None 0.5

Slide 42

ICICIDirect.com 975 450 0.7

44

IndiaBulls 900 None 0.0

 Identi

Frequent Trader/ Investor

Trades of Delivery Trades for Intra

This is a very important slide and would help participants understand how to
identify clients.

Classify the Divide Cash Tr

investor in Long / FNO Trade
Medium / Short

Teach them Option

Trading with
market trend

Mail them Research

Reports on market,
45

sectors and stocks

.“Success is a journey, not a destination’’

46
RELIANCE DEMAT ACCOUNTS

47
Overview of D-mat Account
In India, a D-mat account the abbreviation for d-materialized account, is a type of
banking account which dematerializes paper-based physical stock shares. The d-
materialized account is used to avoid holding physical shares: the shares are bought
and sold through a stock broker. This account is popular in India. The Securities and
Exchange Board of India (SEBI) mandates a d-mat account for share trading above
500 shares. As of April 2006, it became mandatory that any person holding a d-mat
account should possess a Permanent Account Number (PAN), and the deadline for
submission of PAN details to the depository lapsed on January 2007.

Procedure

1. Fill d-mat request form (DRF) (obtained from a depository participant or DP with
whom your depository account is opened).
2. Deface the share certificate(s) you want to dematerialize by writing across
Surrendered for d-materialization.
3. Submit the DRF & share certificate(s) to DP. DP would forward them to the
issuer / their R&T Agent .
4. After d-materialization, your depository account with your DP, would be credited
with the d-materialized securities.

Reliance Money D-mat Account Services

Reliance Money – Transacting and investing simplified.

48
Get ready to change the way you transact and invest in financial products and
services. Whether you wish to transact in equity, equity & commodity derivatives,
IPO’s offshore investments or prefer to invest in mutual funds, life & general
insurance products or avail money transfer and money changing services, you can do
it all through reliance money. Simply open a reliance money account and enjoy the
convenience of handling all your key financial transactions through this one window.
Benefits of having a reliance money account.
•It’s cost effective
You pay comparatively lower transaction fees. As an introductory offer, we invite you
to pay a flat fee of just Rs. 500/- and 750/- and transact through reliance money. This
fee is valid for two months or a specified transaction value.

The table below for details.

• Its offers single –

Through reliance money’s associates, you can transact in equity, equity and
commodities derivatives, offshore investments mutual funds, IPO’s life insurance,
general insurance, money transfer, money changing and credit cards, amongst others.
•Its convenient
You can access reliance money’s services through
•The internet
•Transaction kiosks

49
•The phone (call & transact)
•Our all – India network of associates On an assisted trade (through the call centre or
our network of associates) a charge of Rs 12 per executed trade applicable.
•Its Safe Your account is safeguarded with a unique security number that changes
every 32 seconds. This number works as a dynamics password to keep your account
extra safe.

• You get your own d-mat account with reliance

capital at an annual fee of just Rs. 50/-.
• Its provides you a d-mat account provides you a
3-in-1 facility,
• You can access your banking, trading and d-mat account through a single window
and transfer funds across accounts seamlessly.
• It provide you value- added services At www.reliancemoney.com, you get.
• Reliable research, including views of external experts with an enviable track record
• Live news updates from Reuters and Dow Jones
• CEO’s / expert views on the economy and financial markets
• Tools that help you plan your investments, tax, retirement, etc. in the personal
finance section
• Risk Analyzers for analysis of your risk profile
• Asset allocators to build an appropriate investment portfolio
• Innovative use of technology for facilitating
convenient trading/investments –
kiosks (similar to ATM’s)

50
Reliance Money Provide the kiosks (similar to ATM’s) Facilities, to their customer
through which the customers can trade on available kiosks at the particular Branch of
Reliance Money. The company are going to open these kiosks in the market as the
ATM’s of the Banks. Reliance Money provides 3 different trading platforms for
equity trading:
Insta Trade
Fast Trade
Easy trade
The benefits
• A safe and convenient way to hold securities;
• Immediate transfer of securities;
• No stamp duty on transfer of securities;
• Elimination of risks associated with physical certificates such as bad delivery, fake
securities, delays, thefts etc.;
• Reduction in paperwork involved in transfer of securities;
• Reduction in transaction cost;
• No odd lot problem, even one share can be sold;

51
• Nomination facility;
• Change in address recorded with DP gets registered with all companies in which
investor holds securities electronically eliminating the need to correspond with each
of them separately;
• Transmission of securities is done by DP eliminating correspondence with
companies;
• Automatic credit into d-mat account of shares, arising out of
bonus/split/consolidation/merger etc.
• Holding investments in equity and debt instruments in a single account.

Reliance Money

BROKERAGE

ONLINE OFFLINE

RECHARGE VOUCHER RECHARGE VOUCHER

+
FRANCHISEE FEE

FRANCHISEE FEE RS. 15/ TRANSACTION

Reliance has the concept of Recharge Vouchers

RECHARGE VOUCHER:
Rs. 500 12 Month 5 Lac Limit
Rs. 500 2 Months 1 Crore
Rs. 1350 6 Months 6 Crore
Rs. 2550 12 Months 12 Crore

52
Account Opening Charges :

For Regular Customers : Rs. 750.00

For Govt. Employees / Corporate : Rs. 500.00

Offer:

One Year Trading Account Fee by Reliance of Rs. 500.00 & 12 Months. Validity / 5
Lacs.

Required Documents
The extent of documentation required to open a d-mat account may vary according to
your relationship with the institution. If you plan to open a d-mat account with a bank,
a savings, current and, or other account for which the holder have been issued a check
book, such holder has an edge over the non-account holder. In fact, banks usually
offer additional incentives to customers who open a d-mat account with them. Along
with the application form, your photographs (with co-applicants) and proof of
identity/residence/date of birth have to be submitted. The DPs also ask for a DP-client
agreement to be executed on non-judicial stamp paper. Here is a broad list:

• A canceled check, preferably MICR

• Proof of Identification
• Proof of Address
• Proof of Pan card (mandatory)
• Recent photographs, one and, or more For proof of identification and, or address
self-attested facsimile copies of PAN card, Voter’s ID, Passport, Ration card, Driver’s
license, Photo credit card, Employee ID card, Bank attestation, latest IT returns and,
or latest Electricity/Landline phone bill are sufficient. While they only ask for
photocopies of the documents, they will need the originals for verification.

Brokerage card:

53
  500 for 2 months 1 crore (90 lakh for intra trade & 10 lakh for delivery)
 1350 for 6 months 3 crores (2.70 lakh for intra trade & .30 lakh for delivery)
 2500 for 12 months 6 crore (5.40 lakh for intra day & .60 lakh for delivery)
 PR 500 for 12 months with the limit of 5 lakhs (both intraday & delivery)

Secured log in with reliance money:

 Unique user id (different for each & every client)
 User password (which you need to change every 15 days)
 Security key (which changes in every 32 seconds and generate numbers
randomly)

Brokerage:
 Reliance money is working on the zero brokerage concept, because of which
education cess as well as service tax will be NIL.
 As per the SEBI guidelines any brokerage company can't charge zero
brokerage so it charges 0.01% of brokerage in the name of transaction cost.
 Other than this the security transaction tax (STT) is also being charged @
 On Delivery: 0.125% On Intra day: 0.0125%
 Other than this holding charges are also being charged on sale of securities
@Rs 12 on
 1 Scrip & 1 Order (irrespective of the fact as to how much big be the value of
the complete order).

Points To Remember

54
1. Only securities admitted by NSDL can be dematerialized. The list is available with
your DP.
2. Only securities registered in the name of the account holder can be dematerialized.
3. Dematerialization is normally completed within 15 days after the share certificates
have reached the issuer/ their R&T Agent. Thus it may take you a month from the
date you hand over shares, to receive d-mat credit.
4. Dematerialization would be done only when the issuer / their R&T Agent is
satisfied of genuineness of securities & ownership status
5. All the joint holders should sign the DRF.
6. The pattern of holding in the DRF should match the pattern of holding on the share
certificate & the pattern in which account is opened.
7. D-mat requests with name(s) not matching exactly with the name(s) appearing on
the certificates merely on account of initials not being spelt out fully or put after or
prior to the surname, would be processed, provided the signature(s) of the client(s) on
the DRF tallies with the specimen signature(s) available with the issuer/ their R & T
agent.
8. If the signature in the DRF does not match with the signature available with the
issuer/ their R & T agent, the issuer/ their R & T agent may at the time of d-mat
confirmation, ask for additional documentation (like bank attestation/ notarization,
etc.) to prove that the certificate belongs to the person who forwarded the DRF.
9. In case there is any problem in processing the DRF, contact your DP and if he
cannot resolve the problem you may contact NSDL.

Benefit:
D-mat account has become a necessity for all categories of investors for the following
reasons/ benefits:
• SEBI has made it compulsory for trades in almost all scrip’s
to be settled in D-mat mode. Although, trades up to 500
shares can be settled in physical form, physical settlement is
virtually not taking place for the apprehension of bad
delivery on

• account of mismatch of signatures, forgery of signatures,

fake certificates, etc.

55
 • It is a safe and convenient way to hold securities compared
to holding securities in physical form..

• No stamp duty is levied on transfer of securities held in D-

mat form.

• Instantaneous transfer of securities enhances liquidity.

• It eliminates delays, thefts, interceptions and subsequent

misuse of certificates.

• Change of name, address, registration of power of attorney,

deletion of deceased's name, etc. - can be effected across
companies by one single instruction to the DP.

• Each share is a market lot for the purpose of transactions -

so no odd lot problem.

Any number of securities can be transferred/delivered with one

delivery order. Therefore, paperwork and signing of multiple transfer
forms is done away with. It facilitates taking advances against
securities on low margin/low interest.

IMPORTANCE OF THE STUDY

56
The need of the study arises because of the reason that a trainee must
understand the company, its achievements and tasks, products and
services and also to collect information about its competitors, its
products and services offered. So that, after understanding and
collecting information about the organization and its competitors, a
trainee will be able to work well for the organization.
From the study I have learned very much, about the company as well
as the strategy of the customers, which helps me a lot at my working
days.

COMPANY PROFILE

57
Reliance Capital Ltd is a part of the Reliance - Anil Dhirubhai Ambani Group, and is
ranked among the 25 most valuable private companies in India. Reliance Capital is
one of India's leading and fastest growing private sector financial services companies,
and ranks among the top 3 private sector financial services and banking groups, in
terms of net worth.Reliance Capital has interests in asset management and mutual
funds, life and general insurance, private equity and proprietary investments, stock
broking, depository services, distribution of financial products, consumer finance and
other activities in financial services.

The Reliance Anil Dhirubhai Ambani Group is one of India's top 2 business houses,
and has a market capitalization of over Rs.2,90,000 crore (US$ 75 billion), net worth
in excess of Rs.55,000 crore (US$ 14 billion), cash flows of Rs. 11,000 crore (US$
2.8 billion) and net profit of Rs. 7,700 crore (US$ 1.9 billion)

RELIANCE CAPITAL COMPANY OUTLINE

RELIANCE
CAPITAL

RELIANCE RELIANCE RELIANCE

MONEY LIFE GENERAL
INSURNACE INSURANCE

RELIANCE RELIANCE
MUTUAL MUTUAL
FUNDS FUNDS

58
Reliance Money
Reliance Money is a group company of Reliance Capital; one of India's leading and
fastest growing private sector financial services companies, ranking among the top 3
private sector financial services and banking companies, in terms of net worth.
Reliance Capital is a part of the Reliance Anil Dhirubhai Ambani Group.

Reliance Money is a comprehensive electronic transaction platform offering a wide

range of asset classes. Its endeavour is to change the way India transacts in financial
markets and avails financial services. Reliance Money is a single window, enabling
you to access, amongst others in Equities, Equity & Commodities Derivatives, Mutual
Funds, IPOs, Life & General Insurance products, Offshore Investments, Money
Transfer, Money Changing and Credit Cards. The Reliance – Anil Dhirubhai Ambani
Group is among India’s top three private sector business houses on all major financial
parameters, with a market capitalization of Rs.325,000 crores (US$ 81 billion), net
assets in excess of Rs.115,000 crores (US$ 29 billion), and net worth to the tune of
Rs.55,000 crores (US$ 14 billion)
Reliance Money is a group company of Reliance Capital; one of India's leading and
fastest growing private sector financial services companies, ranking among the top 3
private sector financial services and banking companies, in terms of net worth.
Reliance Capital Ltd. has interests in asset management, life and general insurance,
private equity and proprietary investments, stock broking and other financial services.
Reliance Capital is one of India’s leading and fastest growing private sector financial
services companies, and ranks among the top 3 private sector financial services and
banking companies, in terms of net worth. The company has interests in asset
management and mutual funds, life and general insurance, private equity and
proprietary investments, stock broking and other activities in financial services.

59
ORGANIZATION HIERARCHY

RELIANCE MONEY
(Head Office Mumbai)

BHOPAL BRANCH

Cluster Head

Centre Manager

Business Development
Executives

60
 VISION STATEMENT
To be globally respected wealth creator with an emphasis on customers care and a
culture of good corportate governance.
MISSION
To Create and nurture a world class, high performance environment aimed at
delighting our customers.

CONCEPT BEHIND Reliance Money

Reliance Money provides a comprehensive platform, offering an investment avenue
for a wide range of asset classes. Its Endeavour is to change the way India transacts in
financial markets and avails financial services.

Reliance Money offers a single window facility, enabling you to access, amongst
others. Equity, Equity and Commodity Derivatives Offshore Investments, IPO’s,
Mutual Funds, Life Insurance & General Insurance Products.
Why Reliance Money?
Reliance Money is the most cost-effective, convenient and secure way to transact in a
wide range of financial products and services.
The highlights of Reliance Money’s offering are:
Cost-effective: The fee charged by the affiliates of Reliance Money, through whom
the transactions can be placed, is among the lowest charged in the present scenario.
As an introductory offer, pay a flat fee of just Rs. 500/- valid for 2 months or
specified transactional value*.
Convenience: You have the flexibility to access Reliance Money services in multiple
ways: through the Internet, Transaction Kiosks, Call & Transact (Phone) or seek
assistance through our Business Partners.
Security: Reliance Money provides secure access through an electronic token that
flashes a unique security number every 32 seconds (and ensures that the number used
for the earlier transaction is discarded). This number works as a third level password
that keeps you account extra safe.

61
Single window for multiple products: Reliance Money, through its affiliates/partners,
facilitates transactions in Equity, Equity & Commodity Derivatives, Offshore
Investments**, Mutual Funds, IPO’s. Life Insurance and General Insurance products.

3 in 1 integrated access: Reliance Money offers integrated access to your banking,

trading and demat account. You can transact without the hassle of writing cheques.

Demat Account with Reliance Capital: Through Reliance Money, you get a hassle-
free demat account with Reliance Capital. The Annual Maintenance Charge for the
Demat Account is just Rs. 50/- per annum.

RELIANCE ADA GROUP

62
63
Reliance Money is a group company of Reliance Capital, one of India's leading and
fastest growing private sector financial services companies, ranking among the top 3
private sector financial services and banking companies, in terms of net worth.
Reliance Capital is a part of the Reliance Anil Dhirubhai Ambani Group. Reliance
Money is a comprehensive electronic transaction platform offering a wide range of
asset classes. Its endeavor is to change the way India transacts in financial markets
and avails financial services.
Reliance Money is a single window, enabling you to access, amongst others in
Equities, Equity & Commodities Derivatives, Mutual Funds, IPOs, Life & General
Insurance products, Offshore Investments, Money Transfer, Money Changing and
Credit Cards.
The Reliance Anil Dhirubhai Ambani Group is one of India's top 3 business houses,
and has a market capitalisation of over Rs.2,90,000 crore (US$ 75 billion),net worth
in excess of Rs.40,000 crore (US$ 10 billion), cash flows of Rs. 9,000 crore (US$ 2.2

64
billion), net profit of Rs. 5,000 crore (US$ 1.3 billion) and zero net debt.

RELIANCE MONEY PRODUCT OFFERING

1. Trading Portal (with almost negligible brokerage )

• Equity Broking
• Commodity Broking
• Derivatives ( Futures & Options )
• Offshore Investments (Contract For Differences)
• D-Mat Account.
2. Financial Products

65
 • Mutual Funds
• Life Insurance
o ULIP plan
o Term Plan
o Money Back Plan
• General Insurance
o Vehicle/Motor Insurance
o Health Insurance
o House insurance
• IPO’s
• NFOs
3. Value-Added Services
• Retirement Planning
• Financial Planning
• Tax Saving
• Children Future Planning
5.Credit Cards
4. Gold coins retailing

66
Chairman's Profile:

67
Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil
Dhirubhai Ambani is the chairman of all listed companies of the Reliance ADA
Group, namely, Reliance Communications, Reliance Capital, Reliance Energy,
Reliance Natural Resources and Reliance Power. He is also Chairman of the Board of
Governors of Dhirubhai Ambani Institute of Information and Communication
Technology, Gandhi Nagar, Gujarat. Till recently, he also held the post of Vice
Chairman and Managing Director in Reliance Industries Limited (RIL), India's largest
private sector enterprise. Anil Dhirubhai Ambani joined Reliance in 1983 as Co-Chief
Executive Officer, and was centrally involved in every aspect of the company's
management, If we look for examples to prove this quote then we can find many but
there is none like that of Reliance Money. The company which is today known as the
largest financial service provider of India.

Reliance Capital has interests in asset management and mutual funds, life and general
insurance, private equity and proprietary investments, stock broking, depository
services, distribution of financial products, consumer finance and other activities in
financial services. Reliance Mutual Fund is India's no.1 Mutual Fund. Reliance Life
Insurance is India's fastest growing life insurance company and among the top 4
private sector insurers. Reliance General Insurance is India's fastest growing general
insurance company and the top 3 private sector insurers.
Reliance Money is the largest brokerage and distributor of financial products in India
with more than 2.5 million customers and the largest distribution network. Reliance
Consumer finance has a loan book of over Rs. 8,000 crores at the end of June 2008.
Reliance Capital has a net worth of Rs.6,862 crores (US$ 1.6 billion) and total assets
of Rs. 19,940 crores (US$ 4.6 billion) as of June 30, 2008 and over 26,000
employees. Money has increased its market share among private financial companies
to nearly Convenient & effective – Anytime & anywhere financial transaction
capability. Launched inApril 2007. It provides the Flat fees system. It has 2.2 million
customers in 1 year of official launch. It has over 5,000 outlets across 700
towns/cities. Average daily turnover – in excess of Rs 2,000 crores. Considering the
entire life market, including the Rs. 12,890 crores booked by life insurance
Corporation, Reliance life insurance market share works out to around 6.25% .The

68
life insurance market continuous to be dominated by LIC which has about 67% share
this only a marginal dip from its 73% share in end-July . These comparisons are only
for first year or new business premium.

COMPETITORS

HDFC BANK is one of the leading Depository Participant (DP) in the country with
over 8 Lakh d-mat accounts.

69
HDFC Bank D-mat services offers you a secure and convenient way to keep track of
your securities and investments, over a period of time, without the hassle of handling
physical documents that get mutilated or lost in transit.
HDFC BANK is Depository participant both with –
National Securities Depositories Limited (NSDL) and Central Depository Services
Limited (CDSL).

Features & Benefits

As opposed to the earlier form of dealing in physical certificates with delays in

transaction, holding and trading in D-mat form has the following benefits :
Settlement of Securities traded on the exchanges as well as off market transactions.
Shorter settlements thereby enhancing liquidity.
Pledging of Securities.
Electronic credit in public issue.
Auto Credit of Rights / Bonus / Public Issues / Dividend credit through ECS.
Auto Credit of Public Issue refunds to the bank account.
No stamp duty on transfer of securities held in d-mat form.
No concept of Market Lots.

Change of address, Signature, Dividend Mandate, registration of power of attorney,

transmission etc. can be effected across companies held in d-mat form by a single
instruction to the Depository Participant (DP).
Holding / Transaction details through Internet / email.
Incase you need any more information or have any queries , feedback & complaints ,
you may please mail us at dphelp@hdfcbank.com
Secured & easy transaction processing
HDFC Bank Ltd provides convenient facility called 'SPEED-e' (Internet based
transaction) whereby account holder can submit delivery instructions electronically
through SPEED-e website (https://speed-e.nsdl.com). SPEED-e offers secured means
of transaction processing eliminating preparation of instruction slips and submission
of the same across the counter to the depository participant. The 'IDEAS' facility
helps in viewing the current transactions and balances (holdings) of D-mat account on

70
Internet on real time basis.

Disclaimer:
Whatever have been stated above are in the good interest of the Investor / D-mat
Applicants / holders to provide a brief picture about the depository system. You are
requested go through the guidelines of the depositories before taking any further
action. For detailed guidelines, you are requested to approach your nearest HDFC
Bank branch. HDFC Bank will not be responsible for any misunderstanding / act
based on the above. Also HDFC Bank might ask for additional information /
documentation than what has been stated above to process your application /
instruction.

ICICI DIRECT

ICICIDirect (or ICICIDirect.com) is stock trading company of ICICI Bank. Along

with stock trading and trading in derivatives in BSE and NSE, it also provides facility
to invest in IPOs, Mutual Funds and Bonds. Trading is available in BSE and NSE

ICICIDirect offers 3 different online trading platforms to its customers,

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Type of Account

1. Share Trading Account

Share Trading Account by ICICIDirect is primarily for buying and selling of

stocks in BSE and NSE.
This account allows Cash Trading, Margin Trading,

Margin PLUS Trading, Spot Trading, Buy Today Sell Tomorrow and Call and Trade
on phone.

ICICIDirect.com website is the primary trading platform for this trading

account. They also provide installable application terminal based application
for high volume trader.

2. Wise Investment Account

3. Online Mutual funds investment allows investor to invest on-line in
around 19 Mutual Fund companies. ICICI Direct offers various options
while investing in Mutual Funds like Purchase Mutual Fund, Redemption
and switch between different schemes, Systematic Investment plans,
Systematic withdrawal plan and transferring existing Mutual Funds in to
electronic mode. This account also provides facility to invest in
Government of India Bonds and ICICI Bank Tax Saving Bonds.
2.Active Trader account gives more personalized investment options to the
investors. It allows investor to use online and offline stock trading. It also
provides with independent market expertise and support through a
dedicated Relationship Manager from ICICI.

Active Trader also provides commodity trading.

Brokerage and fees

Account opening fees : Rs 750/- (One time non-refundable)

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 Brokerage : ICICIDirect.com brokerage varies on volume of trade and inclusive of
d-mat transaction charges, service taxes and courier charges for contract notes. It
ranges from 0.1% to 0.15% for margin trades, 0.2% to 0.425% for squared off
trades and 0.4% to 0.85% on delivery based trades.

Disadvantages of ICICIDirect

1. Getting access to ICICIDirect.com website during market session can be

frustrating.

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 RESEARCH METHODOLOGY

The approach to the research is considered in this chapter, from

the theoretical underpinning to the collection and analysis of the data.
It begins with the extent of the research to provide the specific
guidelines of studying. The next part is concerned with the method of
the research that refers to the data collection and analyzing which is
used in the research.

METHODS-
PRIMARY DATA

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 Date collection for this research was done primarily through
filling up of questionnaire. The sample for the research including
different individuals of various age groups and having different
professions and qualifications. Data was collected through the
interview of individuals. The questionnaire was containing questions
regarding the personal details of individuals and then some light
questions regarding their primary knowledge related to private
insurance companies. Then there were questions related to their interest
in being the Insurance Consultants of company.
SECONDARY DATA

A large amount of secondary data has been collected from secondary

sources. Some of the sources are:-
 Reports on Insurance Sector of India.
 Articles from Newspapers and magazines.
 Various web sites of the insurance companies and related sites.

DATA ANALYSIS
There are some features of analyzing data that need to be borne
in mind when choosing the method for analyzing the research. The
questionnaires were prepared to explore the psychology of individuals
about being associated with as Insurance Consultants and to help the
company grow by increasing its sales. Instead of testing a hypothesis, a
qualitative analyst may demonstrate evidence showing that a theory,
generalizing, or interpretation is plausible.
SAMPLE SIZE:-

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 Various areas of Delhi were covered in order to fill the
questionnaire. I interacted with 100 individuals in order to know about
their interest of being Insurance Consultants..
SAMPLE COMPOSITION

 Youth
 Executives
 Serviceman
 Business persons
RESEARCH DESIGN:
A research design provides the framework to be used as a guide
in collecting and analyzing data.

Descriptive Research :
Market survey is one of the best example of descriptive research.
This is a one shot research study at a given point of time, and consists
of a sample of the population of interest. Its advantages are that it
gives a good overall picture of the position at a given time. It can cover
many variables of interest, and is not affected by the movements of
elements in the sample, because other elements can be substituted for
them.

DATA ANALYSIS :-

After collection of data, the analysis of it was done through

various graphs:-
 Pie Diagram
 Bar Diagram
 Tubes
 Cones

76
77
DATA ANALYSIS AND INTERPRETATION

Q .1 Which bank is easily available every where ?

Company Name Percentage of respondent

Reliance Money 25
ICICI 15
HDFC 10

78
 25

20

15

10

0
Reliance ICICI HDFC

Interpretation:- 50% have respondent of Reliance Money, 30% have respondent

of HDFC, 20% have respondent of ICICI.

Q.2Which banking D-mat account offered you a large no. of services?

Company Name Percentage of respondent

Reliance money 25
HDFC 10
ICICI 15

79
 25

20

15

10

0
RLIANCE HDFC ICICI 4th Qtr

INTERPRETATION : 50% have respondent of Reliance Money, 20% have

respondent of HDFC, 30% have respondent of ICICI.

Q.3 Which bank provide you a better email facility?

Company Name Percentage of respondent

Reliance money 23
HDFC 11
ICICI 16

80
 25

20

15

10

0
Reliance HDFC ICICI

INTERPRETATION: 46% have respondent of Reliance Money, 22% have

respondent of HDFC, 32% have respondent of ICICI.

Q.4 Which company provide a less BROKARAGE rate ?

Company Name Percentage of respondent

Reliance money 21
HDFC 15
ICICI 14

81
 25

20

15

10

0
Reiance HDFC ICICI 4th Qtr

INTERPRTETATION: 42% have respondent of Reliance Money, 30% have

respondent of HDFC, 28% have respondent of ICICI.

Q. 5 Which company provide you a large number of product and services?

Company Name Percentage of respondent

Reliance money 21
HDFC 15
ICICI 14

82
 25

20

15

10

0
Reliance HDFC ICICI

INTERPRETATION:- 42% have respondent of Reliance Money, 30% have

respondent of HDFC, 28% have respondent of ICICI.

Represent a pie chart

83
ICICI
27%

Reliance
45%

HDFC
28%

84
 OBSERVATION

To study the sales and distribution management and improve the

Customer Acquisition Process by analyzing the consumer behavior,
response and mindset towards the product and services the
company offers.

85
• 50% have respondent of Reliance Money, 30% have respondent of
HDFC, 20% have respondent of ICICI.
• 50% have respondent of Reliance Money, 20% have respondent of
HDFC, 30% have respondent of ICICI.
• 46% have respondent of Reliance Money, 22% have respondent of
HDFC, 32% have respondent of ICICI.
• 42% have respondent of Reliance Money, 30% have respondent of
HDFC, 28% have respondent of ICICI.
• 42% have respondent of Reliance Money, 30% have respondent of
HDFC, 28% have respondent of ICICI.

86
\

SUGGESTION

The Brand image of Reliance Money is good in market but according to customer
satisfaction the company have to provide the better service.
And also change the Market strategy

87
In order to render the existing Mutual Funds more effective and purposeful the

following steps should be taken:

 There should be comprehensive legislation to control the operations of the

Mutual Funds including the UTI. At present, Mutual Funds are subject to
guidelines laid down by the RBI, Government of India and the SEBI and
some of the guidelines are contradictories leading to confusion among the
Mutual Fund managers. Further, the guidelines governing the UTI are not
the same. It is, therefore, necessary that the Government should come out
with single set of comprehensive legislation, which will uniformly be
applicable to public sector and private sector Mutual Funds and the UTI.

 So far Mutual Funds in India confined themselves to urban areas; leaving

vast saving potentials in rural hinterlands untapped. By penetrating in rural
areas and introducing saving schemes tailored to the diverse preferences
of rural community and by educating them about the benefits of the
schemes, Mutual Funds can raise burgeoning resources which can be
gainfully employed for the national development.

 Investors' confidence in Mutual Funds can be restored by rendering their

operations more transparent and providing better services.

 While it is fine to advertise good performance of a particular scheme by a

fund in order to attract more investment, the times are fast approaching
when an honest view based approach would compel a Mutual Fund to
advise investors on "sell" or "switch" between schemes, as emphatically
as it would advise on the purchase. So as to attract investors, it is,

88
therefore, advisable to Mutual Funds to offer this sort of counseling which
will certainly make a Mutual Fund different from other institutions.

89
 LIMITATION

1. Low level of need..

2. Low consumer awareness
3. For consumer, features and quality are less important.
4. market is very small.
5. More complex.

90
6. Regional, cultural and economic barriers exist in market..
7. Poor standard of living in society.
8. Slow down in demand.
9. The time constraint was one of the major problems.
10. The study is limited to the different schemes available under the Demat account
selected.
11. The lack of information sources for the analysis part.

91
 CONCLUSION

Reliance D-mat Account is better than other D-mat account . Reliance Money has
good return of investment. A good brand is always welcomed over here people are
aware of quality so they go for ready to spend bucks of money.
At last all con be concluded by that Reliance Money is still growing industry in India
Reliance D-mat account have less brokerage rate .

92
It provide a security with the use of special type of key .

93
 BIBLIOGRAPHY

By the Help of Manuals

• Reliance Money Report of 2008 & Internet.

94
By the help of Other Sources

• By the head’s and the consultant of the Reliance Money.

By the Help of Newspaper & Magazines

• Business World
• Outlook
• Business Economy
• The Economic Times

By the help of Websites

1. www. IRDAIndia.org.
2. www.Reliancemoney.com
3. www.google.com

Reference books:
1. FINANCIAL INSTITUTIONS AND MARKETS - L.M.BHOLE
2.INVESTMENT MANAGEMENT - V.K.BHALL
3. RESEARCH METHODOLOGY - KOTHARI

95
QUESTIONNAIRE

1. NAME : ………………….

96
2. AGE : ………………….

3. OCCUPATION : ………………….

4. Do you know about stock market ? YES NO

5. Do you have a basic knowledge of Demat A/C ? YES NO

6. Do you know about Reliance Demat A/C ? YES NO

7. Do you know about Demat A/C concepts? YES NO

8. Do you know about mutual Demat A/C profits ? YES NO

9. Do you compare different companies Demat A/C? YES NO

10. Have you liked investing in them ? YES NO

11. Are you satisfied with mutual Demat A/C? YES NO

97
Q .12 Which bank is easily available every were ?
 Reliance Money
 HDFC
 ICICI

Q.13 Which banking D-mat account offered you a large no. of services?
 Reliance Money
 HDFC
 ICICI

Q.14 Which bank provide you a better email facility?

 Reliance Money
 HDFC
 ICICI

Q.15 Which company provide a less BROKARAGE rate ?

 Reliance Money
 HDFC
 ICICI

Q. 16 Which company provide you a large number of product and services?

 Reliance Money
 HDFC
 ICICI

98
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