Post on 10-Mar-2015
INTRODUCTION TO THE COMPANY
Religare is an emerging markets financial services group with a presence across Asia,
Africa, Middle East, Europe, and the Americas. In India, Religare's largest market, the group
offers a wide array of products and services including broking, insurance, asset management,
lending solutions, investment banking and wealth management. With 10,000-plus employees
across multiple geographies, Religare serves over a million clients, including corporate and
institutions, high net worth families and individuals, and retail investors.
NAME
Religare is a Latin word that translates as 'to bind together'. This name has been chosen to
reflect the integrated nature of the financial services the company offers.
SYMBOL
The Religare name is paired with the symbol of a four-leaf clover.
Traditionally, it is considered good fortune to find a four-leaf clover as there is only one
four-leaf clover for every 10,000 three-leaf clovers found.
For us, each leaf of the clover has a special meaning. It is a symbol of Hope. Trust. Care.
Good Fortune.
For the world, it is the symbol 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
foundation on which a person reaches for the stars.
The second leaf of the clover represents Trust. The ability to place one’s 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.
MR. SUNIL GODHWANI
Mr. Sunil Godhwani, Chairman and Managing Director, Religare Enterprises Limited, is the
driving force behind the company. A man with a vision to create a global business of excellence,
he is the inspiration to all as he spearheads the company’s management and global operations;
strategizing and directing it through its next phase of growth.
Sunil brings to the company strong leadership skills, vigor and a passion for excellence. He
believes in nurturing a culture that is entrepreneurial, result oriented, customer focused and based
on teamwork. He has given strategic direction to Religare’s growth since his joining in 2001. He
has been instrumental in establishing Religare’s vast network and shaping the Company’s
strategies in India and abroad. He is on a constant lookout for taking the Company to new
heights by managing various acquisitions, finding new partners for joint ventures and scouting
new avenues for the business. Under his able leadership, Religare Enterprises Limited is India’s
fastest growing, integrated financial services company with a significant presence in 12 countries
across Asia, Africa, Middle East, Europe and the Americas. With over 10,000 employees,
Religare serves over a million investors ranging from corporate clients to high net worth
individuals.
Sunil has a diverse and wide-ranging experience of over two decades in managing large scale
businesses, he also serves as Director on the Boards of Religare Technova Limited, Super
Religare Laboratories Limited, Religare Macquarie Wealth Management Limited, AEGON
Religare Life Insurance Company Limited, Religare Voyages Limited, Fortis Healthcare Limited
and other subsidiaries/ Group companies of Religare.
A powerful orator and a great motivator, Sunil has been awarded with many awards and
accolades. Recently he has been awarded ‘India Business Leader of the Year’ award at Global
Indian Business Meeting hosted by Horasis, in Madrid, Spain and “CEO of the year Award” at
CEO CLUBS INTERNATIONAL Awards
MR. ANUJ GULATI
In his capacity of CEO, Anuj would be responsible for setting up this business and work towards
making Religare as one of the dominant players in the Indian Health Insurance industry.
His last assignment was with ICICI Lombard General Insurance Co. Ltd., India as “Director -
Service and Business Development”. He was reporting directly to the MD & CEO and was
responsible for Product Development, Pricing, Underwriting, Claims, Operations, Technology,
Administration , Marketing & Corporate Communications. Apart from heading these functions
Anuj also had complete business responsibility for the online and rural business.
Prior to ICICI Lombard his key assignments have been:
As a financial analyst with Procter & Gamble India Ltd
Strong entrepreneurship experience as CEO of Labprocure India Pvt Ltd.
Anuj is a Chemical Engineer from IIT Delhi and is an MBA from IIM Bangalore.
MR. AMIT SARUP
Mr Amit Sarup carries the overall responsibility of leading the private equity business of the
group. A seasoned wealth management professional, he is the Whole-time Director at Religare
Macquarie Wealth Management and also oversees the Arts business, carried under Religare Arts
Initiative, both ventures in which he has been involved in setting up and creating from the
beginning.
Amit received a bachelor’s degree in commerce from the University of Delhi and a master’s
degree in business administration from the Institute of Management Technology, Ghaziabad,
India. Prior to joining Religare, he was Vice-President, Wealth Management at the Kotak
Mahindra Group and held several key positions there from 2000 to 2005. He has over 18 years of
experience in the capital markets and financial services industry
MR. ABHAY NARAYAN SAPRU
Abhay has over 20 years of work experience. He served in the army for a decade, post which he
joined Jones Lang Lassalle a MNC brokerage firm. Abhay was one of the earlier members and
helped in setting up the company. He worked in almost all the verticals ie Broking, Valuation &
Consulting. He left JLL as the head of their Delhi office to join Citi Bank as AVP property &
facilities for the north. A 3 year stint with Citi and Abhay took over as VP & head of the
Corporate Realty Services at Abn Amro Bank. Later on he joined Aegon Religare as a Director
to set up and run their Infrastructure department. He worked with Aegon Religare for 3 years and
was subsequently transferred to Religare.
Abhay would be overall responsible for managing the infrastructure of the company, broadly
comprising Property, Procurement, Security & Administration.
He Graduated from Delhi University & studied Real Estate from Singapore University
NETWORK
PRODUCT OFFERINGS
EQUITY
Investments in stocks often serve as a very foundation in portfolios for many types of investors.
As a member of NSE, BSE, MCXSX, USE and a depository participant with NSDL and CDSL,
Religare Securities Limited (RSL) has helped both naïve and experienced investors to chart their
way even in tumultuous times.
Though equities are considered more rewarding when compared to other investment options, at
RSL we provide highly efficient and sophisticated trading solutions to effectively manage your
equity investments in an increasingly complex and dynamic market scenario.
Indian markets, though in the nascent stage offer one of the most exciting and rewarding
investment opportunities among the emerging market economies. Hence, as financial awareness
deepens and more sophisticated instruments enter the Indian markets, investors need to tread the
path cautiously. At RSL we empower our clients through best-in-town research and analysis at
the right time so that they see trends as and when they emerge.
With a presence in more than 1500 locations across India, RSL has successfully enhanced
trading flexibilities of its partners, imparting an enriched trading experience through our unique
suite of execution platforms (both offline and online) and state-of-the-art tools and features in
both intraday and delivery segments of the market.
Religare Securities Ltd. (“RSL”), a wholly owned subsidiary of Religare Enterprises Limited
(REL), a global financial services group is a market leading securities firm in India. The
company offers equity broking services to more than half a million clients using both, offline and
online platforms and also offers depository participant services.
Trading in Equities with Religare truly empowers you for your investment needs. We ensure you
have a superlative trading experience through our -
Highly process driven and diligent approach
Powerful research and analytics
One of the ‘best-in-class’ dealing rooms
Further, Religare also has one of the largest retail networks. You can now walk into any
of our branches and connect to our highly skilled and dedicated relationship managers to
get the best services.
Trading Channels - Branch/Online - Religare Securities Ltd has a Pan India presence
with its network of branches, sub-brokers and primary market sub-brokers. Religare has
operations at 2092 locations across more than 500 cities and towns. Online clients get
cutting-edge platform (RACE) that helps even a non-tech savvy customer to trade hassle-
free and thus covers varying needs of the customers - both software based and direct
online access. Brokerage Plans - Religare charges brokerage on the basis of volume
and frequency of trading. We provide different brokerage plans for beginners and traders.
Research - We at Religare believe in providing independent research to clients to help
them make investment decisions, with strict emphasis on self-regulation, avoiding any
possible conflict of interest in objectivity.
Backed by strong pool of highly skilled research analysts, we offer varied research
products and services.
Our Research Products include:
Fundamental research
Technical research
Daily reports
Intraday trading technical calls
Intraday derivative call
Structured products
Index arbitrage
Arbitraging between Index (NIFTY) Futures and its constituents (underlying stock
futures)
Volatility trading
Arbitrage between volatilities i.e between implied volatility of options and forecasted
volatility of underlying stock futures.
Hedging strategies
Our services are conceived to offer you -
An enriched trading experience with best-in-class dealing rooms
Access to daily, incisive, fundamental and technical research and analytics from our
research teams
Personalized services through a team of efficient Relationship Managers and Dealers
Ability to map multiple bank accounts in back-office
A dedicated IT help desk
E-contract notes
Portfolio valuation reports and ledgers on demand
Prompt payout of funds
Other value-adds such as online fund transfers, 24-hr online portfolio tracking,
browser and application-based platforms
Single window login for all back-office systems, regular alerts and daily trade
confirmations on SMS to your mobile phone
Ability to access all your accounts through a unique Customer Relationship Number
COMMODITIES
Religare Commodities Limited (RCL), a wholly owned subsidiary of Religare Securities Ltd
(RSL), was initiated to spearhead exchange-based Commodity Trading. As a member of MCX,
NCDEX, NMCE, ICEX and ACE in addition to both the Spot Exchanges, RCL is a trade
facilitator providing the platform to trade in commodities.
Trading in Commodities with Religare truly empowers you for your investment needs. We
ensure you have a superlative trading experience through –
Access to daily incisive, fundamental and technical research and analytics from our
efficient in house research
Personalized services through a team of dedicated Relationship Managers and Dealers
Browser and application based platforms available for commodity trading
Our dedicated team of experts and highly skilled professionals provide valuable
assistance in exchange-based commodity trading. Whether a first-timer, an experienced
trader, a hedger or a corporate client, we offer each client a customized trading
experience.
Our nationwide presence in Mandi (agricultural market hubs) locations brings commodity
trading right to the doorstep of the actual producers (farmers) and enables them to hedge
risks better. These Mandi branches also act as listening posts that feed information on
arrivals, demand, weather, production and other aspects which impact the physical
markets and help our research teams deliver better quality research on commodities.
A future trading eases the hassles and costs of settlements and storage for traders who do not
want custody. The most lucrative element of futures trading is that it allows investors to
participate and trade at nominal costs.
a) You no longer need to put the whole amount for trading, only the margin amount is required.
b) Traders can earn from short selling.
OUR VALUE ADDS
Access to all your accounts through your unique Customer Relationship Number (CRN)
Access your ledger balances and account information over the internet and at the branch
Help Desk
Browser and application-based platforms can also be made available for commodity
trading
SMS services for research advice to keep you abreast with your investments
Regular News and Updates on market.
COMMODITY CORPORATE DESK:
Are you concerned that your current hedging strategy isn''t effective?
Are you concerned for not getting fair market price for your hedge transactions?
Are you concerned that you’re spending an inordinate amount of time working on your
hedge strategy rather than your business?
Religare Commodity Corporate Desk educates the producers and consumers about the
benefits of hedging and hedging opportunities available. The desk provides guidance to
corporates/firms on the entire life cycle of their hedging strategies, including designing,
implementing, and monitoring.
Uninformed hedging decisions, combined with sustained volatility in the commodities
market, can be disastrous for companies of all sizes. The Religare Commodity Corporate
desk helps smarter decision making with a higher risk-adjusted return on capital.
The way we proceed:
Plan -
Meet the key stakeholders to understand the business and goals. Analyze the commodity
risk inherent in production and/or consumption. Define the hedging objectives given
budgetary, legal, and credit constraints.
Analyze -
Make an assessment of the current and future enterprise-wide commodity risks. Analyze
future cash flows using a sophisticated, multi-factor Monte Carlo approach. Generate
different price options and volatility scenarios. Quantify the hedging strategy in an
optimal risk/return framework. Provide guidance for the analysis of available hedging
strategies.
Implement -
Implement the selected hedging strategies by providing independent pricing and fair
market valuations.
Monitor -
Monthly consultation on the performance of the hedging programs, supported by the
following analytics and reports:
Mark-to-Market
Complete P&L Decomposition
Counterparty Credit Exposure
Value at Risk (VaR)
Cash Flow at Risk (CFaR)
Updated “best case,” “worst case” and “base case” cash flow scenarios
CURRENCY
Currency trading is the largest market worldwide. As per BIS, on an average, trades worth $4
trillion are done every day. The mechanism of the currency trading is simple - all currencies have
a value when compared to other currencies and it is this trading (either purchase or sale) of
currencies that is done to take advantage of the shifts in the relative movement.
Now, experience the excitement of the world''s most traded financial instrument with Religare.
We provide a flexible platform to our clients to expand and diversify their portfolios and add
currency derivatives to complement their commodity and equity trading. Since its inception in
August 2008, the currency futures market has grown by leaps and bounds. With the successful
trading in USD-INR, the offerings have now been extended to Euro-Indian Rupee, Pound
Sterling-Indian Rupee and Japanese Yen-Indian Rupee.
In line with our vision to provide an enriched trading experience, we offer premium levels of
services, security and state-of-the-art trading technology to accommodate our client’s needs. We
truly understand the importance of market timing in futures, which is why we empower our
clients with in-depth, real-time and inductive research and analytics required to make the right
trading decisions.
Why trade in currency derivative?
Highly liquid asset
Extended trading hours - 9 am to 5 pm
Opportunities to reap benefits by trading at a global level and in a highly dynamic market
Affordable and small lot size contract( USD $1000 only ) with low exchange specified
margins
Our services enrich your trading experience with -
A qualified and experienced currency research team, providing you market insights for
fruitful trading
Flexible trading platform for online/offline clients
A dedicated team of advisors to help you play hedged strategies in Currency
Nationwide presence with high market penetration
We at Religare provide you premium services to have an all together new and
unique experience
Flexible trading platforms for online/offline clients
Technical and fundamental research to make your decisions easy
Expert advice to strategize your trades
Reduced different brokerage plans
GOLD
Gold has always been a source of great interest and attraction by the human race. From Ancient
Egyptians to the “Golden Bird” India, gold’s glitter has attracted people across continents. Gold
has been used in jewelry, money, coins, artifacts, standard for currency, medical treatment,
lasers, and space over the ages.
India is the world''s largest consumer of gold, as Indians buy about 25% of the world''s gold,
purchasing approximately 800 tons of gold every year. India was also the largest importer of the
yellow metal; in 2008, India imported around 400 tons of gold.
Approximately 10 million marriages occur in India every year and gold is used for gifting
purposes and as ornaments. Agriculture is the base of Indian economy and physical gold is
popular among farmers as well. Gold jewelry sales spurt after a bumper crop. Affluent people
generally present gold ornaments during DHANTERAS and AKSHAYA TRITYA in their
family. Gold symbolizes progress, excellence, power, strength, wealth, warmth, happiness, love,
hope, optimism, intelligence, justice, balance, perfection, the sun. Gold is a safe investment for
both, poor as well as the rich.
Recent years have seen a striking increase in investor interest in gold. While a sustained price
rally, underpinned by the fact that demand consistently outstrips supply, is clearly a positive
factor in this resurgence, there are many reasons why people and institutions around the world
are once again investing in gold. This website provides you with the background to these reasons
and describes the defining characteristics of the gold market from an investor''s point of view.
ADVANTAGES OF GOLD AS AN INVESTMENT
OPPORTUNITY
During those days of economic meltdown and volatile movements on stocks and commodities
markets, what was the best avenue of investment? For the Indian investors, the biggest
investment route is indeed gold, says a new survey. Most Indians prefer to put their money in the
yellow metal. There is a sentimental and tangible value which is added to the physical possession
of gold especially in the form of gold coins or small bars. Handling of Gold coins is not difficult
as they are not very heavy and even very small quantities can be held.
It is globally accepted fact that gold is a commodity which is in limited supply and the demand is
ever increasing. Hence the basics of economics apply here that the price of the commodity will
go on rising as long as the demand is more than the supply.
RCL negotiates the best price for your gold after research analysis. The rarity and condition of
gold has a significant impact on how much cash you will get. Some are worth much more than
their weight in gold.
Investing in Gold provides:
LIQUIDITY - Gold and Gold Coin''s great strength is its "same as cash" quality. Gold
is liquid anywhere in the world, and funds from gold are quickly available.
SAFETY - Gold investment is one of the safest assets in existence, whereas securities
and real estate are often unpredictable. Gold is well-positioned to benefit from a world
event, and is so sheltered it is used to place capital in the safest possible place.
PRIVACY - Gold are private, compact, and easy to store. Selected gold types have
little or no reporting requirements, and older gold is nearly impossible to follow.
SELF-RELIANCE - Gold Investment is independent of outside factors. It requires no
auditor or outside solvency. Gold is not dependent on marketing, productivity,
government or harvest.
GROWTH - Gold has the potential to outperform any other investment. The upside on
gold can be substantial, especially if gold is accumulated while it is inexpensive. Take
advantage of low prices, as they do not imply problems. Volume and consumption rise
with low prices and eventually prices move up.
PERSONAL SECURITY - Gold''s immunity from chaos and risk is why central banks
keep it. For a secure financial foundation, holding approximately 15% of your portfolio
in gold will provide a formidable safety net.
INSURANCE - Gold creates a natural insurance policy; however, physical gold is
necessary for reliable protection (even gold stocks can suffer in a bear market). The
same issues that hurt the markets positively trigger gold
In a highly disorganized Gold market, the purity aspect and thereby the value for one’s
money during the purchase of gold has always been a question mark. For the customer,
the lack of access to a branded, affordable, reliable Gold coin has always been a matter
of concern. That is where Religare comes in.
Coins are available in lower denominations for the common man.
Religare offers 2 gm,5 gm, 8 gm and 10 gm gold coins with quality 999 at competitive
prices
Tamper proof packing by MMTC assures purity check.
Positive tolerance in our Gold coins up to +0.02
There is no need to follow age-old tradition of biting gold to test its authenticity, as
Religare provides a certificate of purity from MMTC.
These Gold coins are ideal for customers or corporate to be used as a gifting idea, for
retail/agent contests, as employee rewards etc. Retail customers buy these coins just for
the pleasure of owning it or as an investment idea.
MUTUAL FUNDS
Mutual Funds offer an opportunity for long term wealth creation. At RSL we ensure that your
investments are in safe hands backed by quality research and based on the needs of the client
according to his income, savings, age, family background etc.
With our Mutual Fund Service System, an order collection system provided by National Stock
Exchange (NSE), you can place subscription or redemption requests for mutual fund units. You
can buy and sell Mutual Fund units during the trading hours through simple telephonic
instructions.
You no longer have to await the status of your application from AMC or fund house, instead you
can track your request through our online interface and even modify the request until the time it
is accepted by the mutual fund. Reduced time lags and transparency in procedures empower our
investors to make timely and optimal investment decisions.
Securities Exchange Board of India (SEBI) vide circular SEBI/IMD/CIR No. 11/ 183204/2009
dated November 13, 2009 allowed transactions in Mutual Fund schemes through the Stock
Exchange infrastructure. Units of Mutual fund Schemes have been permitted to be transacted
through registered Stock Brokers of recognized Stock Exchanges. With this the Stock Exchange
mechanism extends the present convenience available to secondary market investor to mutual
fund investors. This will give distributors and brokers a level- playing field with banks in
enabling clients to invest in mutual fund and enable to expand the reach of mutual fund schemes
to more towns and cities
IPO
An Initial Public Offering (IPO) is the selling of securities to the public in the primary market.
It 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. This paves way for listing and trading
of the issuer’s securities. The sale of securities can be either through book building or through
normal public issue.
Who decides the price of an IPO?
The issuing company in discussion with the lead merchant banker (the institutions upon which
rests the entire responsibility of managing the issue) decides the price. There is no set price
formula prescribed by SEBI. However the company and the lead banker are required to give full
explanation of the key assumptions taken into consideration while deciding the issue price. In
practice, there are two types of issues, one where the company and Lead Merchant Banker fix a
price (called fixed price) and other, where there is a price band and rest is left to market forces to
determine the final price.
What does ‘price discovery through Book Building Process’ mean?
Book Building is basically a process used in IPOs for price discovery of an offer. It is a method
where, during the period for which the issue is open, different categories of investors apply at
various prices based on their judgement, within the price band. The cut off is determined after
the bid is closed to public.
What is Cut-Off Price?
In a Book building issue, the company that wishes to tap stock market for fresh funds is required
to indicate the price band. The actual discovered issue price can be any price in the price band.
This issue price is called ‘Cut-Off Price’. The issuer and lead manager, which is managing the
issue, decides the cut off price after considering the issue size and the investors’ desire for the
stock.
Process
One needs to have a demat account
Make available the copy of PAN card
Other basic essentials such as address proof, bank details and contact details also
required
We also provide you with latest news about the upcoming and current IPO’s including
their listing dates. Our analysts also offer investment advice based on thorough
fundamental research of the currently open IPO’s.
DERIVATIVES
The Derivative segment is a highly lucrative market that gives investors an opportunity to earn
superlative profits (or losses) by paying a nominal amount of margin. Over past few years,
Future & Options segment has emerged as a popular medium for trading in financial markets.
Future contracts are available on Equities, Indices, Currencies and Commodities.
Since derivatives instrument provide good leverage opportunity, it is a great tool for speculation.
Leverage is a double edge sword for which one requires an equity advisor. Our advisors will also
help you with various strategies like Bull Spread, Bear Spread, Cover call writing, hedging
strategies etc. This is to help you to make better trading returns. The Equity advisor goes a step
further to ensure that your trades are settled and traded with proper margin in your account in a
timely manner. This allows us to give you a convenient single window service and your advisor
becomes the single point contact for all your equity related matters.
INTRODUCTION TO PROJECT
INTRODUCTION OF E-SPOT
INVESTING IN E-GOLD AND E-SILVER
E-investing is revolutionising the investment space for Indians. It is bringing in opportunities for
them to participate in the growth story of commodities by allowing them to move funds into
commodities in smaller denominations and holding them in the electronic, that is, dematerialised
form. Its uniqueness lies in buying, accumulating, holding and liquidating commodities as well
as converting them into physical units in a seamless manner.
Indians are great savers, but awful investors. Our savings ratio is at a high 29 per cent of the
gross domestic product (GDP), but a meager 6 per cent of these household savings finds its way
into wealth generating equity markets, showcasing our inability to make the transition from
savers to efficient investors. Our gold investing habits show a similar theme. Indians are the
largest buyers of gold in the world. But, here is where we go wrong. Most of our gold purchases
are in the form of jewellery. While they may look nice and make you look rich when you wear
them, as a means of financial investment, they are pretty useless. The amount of charges that
the jewellery passes on in the form of design and making costs are high; if you sell that
necklace or ring, you will get a fraction of the price you paid for it.
INTRODUCING E-GOLD AND E-SILVER
Mass participation of retail investors in commodities is still absent. Futures contracts carry high
risk and are products which few of us understand. E-gold and e-silver, launched by National
Spot Exchange (NSEL), are all about investing in gold/silver in both the dematerialised and
physical forms. Just as you can trade equities in the stockmarket, here, too, you can make an
online transaction. On purchase, units of e-gold or e-silver get credited to the buyer's demat
account; the underlying unit of physical gold/silver is stored in the exchange's vault. Looking at
various parameters-ease of transaction, cost of purchase, returns and safe-keeping-e-gold and e-
silver seem to be the smarter way of saving in these alternate forms of investments.
WHY E-GOLD OR E-SILVER?
Holding gold or silver in demat form;
Opportunity for retail investors to diversify portfolio;
No worry for daily MTM pay-in/payout as in derivative buying;
No risk of theft. Purchase in safe custody;
Hassle-free and low-cost investing; and
High liquidity at low costs.
INVESTING IN GOLD
Why invest in gold? Gold, a symbol of wealth, has been traditionally considered as a hedge
against inflation, mostly moving in tandem with rising inflation and inversely with the dollar.
Gold is a highly effective portfolio diversifier due to its low-to-negative correlation with all
major asset classes. Over the last 20 years, gold has shown no statistically significant correlation
with equities. The fundamental reason for this low correlation is that the factors driving gold
price are not the same as the ones that determine the returns on other assets. While, as a rule,
gold shows no statistically significant correlation with mainstream asset classes, there is,
however, evidence that when equities are under stress-in other words, when shares are falling
rapidly in value-an inverse correlation can develop between gold and equities.
The value of goods and services that gold can buy has remained largely stable, unlike currencies,
which have seen significant fluctuation.
A study spanning a 400-year period has shown that the basket of goods and services that gold
could buy over the period has remained the same. Gold protects your portfolio from volatility
because the factors-both at the macroeconomic and microeconomic fronts-that affect the returns
from most asset classes do not significantly influence the price of gold.
For a given level of returns from a portfolio, the risk or volatility can be reduced by adding gold
to it. Similarly, tumultuous situations, such as a global economic crisis across countries and
currencies, or even an occurrence of war, which have a negative impact on prices of most asset
classes, have a positive impact on gold prices. This is because the demand for gold goes up as a
safe haven for parking funds. It is the only medium of exchange completely free of credit risk as
it does not imply a liability for any other entity.
The US dollar may lose its sheen amid the burgeoning US trade deficit and the country's mind-
boggling borrowings to finance the same. In addition, many countries are planning to reduce
their reliance on the dollar and diversify their foreign currency reserves. There certainly seems to
be a trend towards increased diversification of reserve assets, away from what is seen as a dollar
in decline, with gold probably being a major beneficiary.
Inflation could be another trigger which may intensify as a result of government deficits and
loose monetary policies around the world, Inflation has historically been fuelling gold prices as
investors seek to safeguard their wealth against rising inflation, Another factor to be noted is the
introduction and growing popularity of gold exchange-traded funds (ETFs) which have changed
the market in a very important way. By facilitating gold investments and ownership, ETFs have
brought significant numbers of new participants into the market These ETFs shall continue to
drive gold prices higher.
WHY GOLD
The reasons why gold should form a part of your portfolio are many. Here are some of them:
Gold improves the stability and predictability of portfolio returns. It is not correlated with
other assets because gold price is not necessarily driven by the same factors that are
responsible for driving the performance of other assets.
Adding gold to a portfolio introduces an entirely different class of asset. Gold is unusual
because it is both a commodity and a monetary asset.
Gold is one of the few financial assets that is not linked to a liability. It can provide
'insurance' against extreme movements on the value of traditional asset classes.
DEMAND AND SUPPLY FACTOR
Understanding the dynamics in the bullion market is easy and difficult at the same time. The
easy argument is that it is a simple economic theory of demand and supply. The complexity is
that the various factors that influence demand and supply of gold are themselves dynamic. The
basic fact is that gold prices are going through the roof because of high demand and stable-to-
low supply.
Global demand for gold is 1,000 tonnes more than the supply. With no new mining capacity
being discovered, most of the gold is being recycled. Inflationary pressures in the world
economy are positive drivers of gold prices. The central banks of Russia, China and West Asian
countries are giving strong buying support to gold prices. The total gold supply is fragmented
into mining supply, scrap sales and central bank sales. Scrap sales are sourced from old
fabricated products that have been recovered and refined back into bars. Mine production
contributes nearly 60 per cent to the overall supply side while scrap accounts for 26 per cent with
the remaining 14 per cent is sold by the central banks.
According to the World Gold Council, there are more than 400 gold mines operating in the
world. Gold mining is relatively inelastic and, hence, the overall level of global mine production
has been relatively stable, averaging approximately 2,481 tonnes per year since 2005. This
means there has not been any significant expansion in the global supply. The yellow metal has its
demand spread across the
world and 55 per cent of total gold demand across the globe is at tributable to just five countries-
India, Italy, Turkey, the US and China though not in any particular order.
China is increasingly making its presence felt in this area and is all set to surpass India in terms
of gold demand. Though, it may do so in terms of consumption, but it won't be able to surpass
India in terms of imports because China is also among the top gold producing countries.
Moreover, prices have shot up because key gold producers across the world have been
implementing a major dehedging exercise. It involves a gold producing company buying back its
"hedged" gold in expectation of price rises. The producers are accelerating the process of buying
back hedges to get full exposure to the metal in anticipation that prices will rise further.
In most industries, rising demand kicks off an increase in supply that brings prices down. But
gold is often less than responsive as new supply is limited and prospects of a sudden flush of
new gold are slim. There have been no new large discoveries of gold. Investment in the recent
past for exploration has been insignificant. Even if a new mine is discovered, it will be about
10 years before the first ounce of gold from it sees the light of the day. The upward trend in
the annual production is now levelling off. Independent analysts are of the belief that mine
output will remain flat for the next few years and may even drop slightly.
INDIAN SCENARIO
The passion for gold in India has strong historical, cultural, and economic underpinnings. For
centuries, gold has been equated with money, savings, riches, and status in India. India has been
known to possess large stocks of gold, which are mostly accumulations from centuries of imports
rather than a result of production from its own mines. Even today, domestic production only
serves a small fraction of India's consumption requirements.
Globally, India is ranked sixth in the top-10 list of the gold and currency reserves: The first three
positions are being held by Japan, Russia and China, respectively. India consumes anywhere
between 600 to 700 tonnes of gold annually.
But domestic production of gold is only about 2 tonnes per annum. India is the highest consumer
of gold mainly because of religious factors and a traditional fascination for this yellow metal.
The consumption is leading to higher imports of gold as India doesn't produce enough of it to
meet its requirements. India needs a huge investment in gold mining sector as it mines only 0.4
per cent of its total demand despite having 8 per cent of total world gold reserves under its land
mass.
INVESTING IN SILVER
Why invest in silver? Silver has traditionally been considered the poorer cousin of gold. Most
Indians who are dedicated investors in gold have shied away from investing in this other
precious metal. But, with gold prices at their all-time highs and silver prices still a distance away
from theirs', it's time to take another look at silver.
Silver is often compared to gold as a precious metal, but what makes it such an interesting
investment is its industrial use. Largely a by-product of zinc, lead, copper and gold mines, silver
has an intrinsic value because of its natural industrial demand.
While gold and silver prices have tended to follow each other over time, silver, over a long
historical period, has outperformed gold (by about a percentage point annually in rupee prices).
That said, silver also has comparatively higher risk than gold. In fact, it can be considered a
geared play on gold because silver prices outperform gold prices on the upside, and crash more
quickly on the downside.
DEMAND AND SUPPLY FACTOR
Silver is a metal that is associated with metals such as gold, lead, zinc and copper, though its
unusual properties make it very different from them. It is used in making various kinds of
jewellery it is considered a precious metal second to gold, but its contribution in the various
industrial sectors as a raw material makes it unmatchable. No other metal can replace silver as it
has an endless number of uses.
Silver is produced throughout the world. However, an interesting fact is that the primary source
of silver is not the silver mines, but the other sources of silver. Silver mines produce a small
amount of silver that is 25 per cent of the world's total production and the rest of it is derived as a
by-product from gold mines (15 per cent) copper mines (24 per cent), lead and zinc mines (34
per cent) and other sources. The total production of silver in the world figures to be around 615
million ounces and Mexico is the leading silver producing country. The total demand of silver in
the world amounts to around 29,000 tons.
The rally in silver prices has recently been driven by investment demand in the safe havens like
the still-recovering US and Europe economies. In addition, industrial demand for silver for
emerging markets is increasing the prices. Locally, the demand for silver is influenced by eco-
nomic growth and the monsoons. Its prices, in comparison to gold, have been more sensitive to
business cycle fluctuations, while gold, a store of value, has been less sensitive.
INDIAN SCENARIO
India hardly produces any silver and is primarily a silver importing country. It holds the 20th
place in the list of silver producing countries and the total production of silver in India in 2009
was around 7.3 million ounces. Over 50 per cent share of import of silver in India is held by
Chinese silver. In India, investors have limited ways to take exposure to silver. While gold ETFs
are popular, asset managers are not allowed to hold silver directly in ETF or MF form, leaving
investors no choice but to buy silver futures. Also, jewellery has been a big source of demand for
silver and, in fact, with gold prices at their current levels, more and more Indian jewellers are
increasing the amount of silver used in jewellery.
SCOPE OF THE PROJECT
1. Religare has been launched a new product of E-spot in which, there is an investment of
gold and silver, that is beneficial for the awareness for a new product.
2. People have good opportunity for the investment in gold and silver metals.
3. There are no chances of expiry dates.
4. We can start investment from 1gram…….means a small investor also can easily invest…
there is no need of larger investment.
5. It is Hassle-free and low-cost investing, High liquidity at low costs.
OBJECTIVES OF THE PROJECT
1. The main objective of the project is to know about the features of Religare E-Spot.
2. To aware the customers about the benefits of E-Spot.
3. To know about the Low Risk Trading of commodities
4. To study the risk of theft. Purchase in safe custody
5. To study the where customer should invest gold or silver.
RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem. The Research
Methodology includes the various methods and techniques for conducting a Research.
“Marketing Research is the systematic design, collection, analysis and reporting of data and
finding relevant solution to a specific marketing situation or problem”. Research is, thus, an
original contribution to the existing stock of knowledge making for its advancement. The
purpose of Research is to discover answers to the Questions through the application of scientific
procedures. Our project has a specified framework for collecting data in an effective manner.
Such framework is called “Research Design”. The research process followed by us consists of
following steps:
Research Design: -
Descriptive Research: -A type of conclusive research, which has as its major objective the
description of something-usually market characteristics or functions. In other words descriptive
research is a research where in researcher has no control over variable. It just presents the
picture, which has already studied.
Sample Design: -Sampling can be defined as the section of some part of an aggregate or totality
on the basis of which judgment or an inference about aggregate or totality is made. The sampling
design helps in decision making in the following areas: -
Sample frame-Sample frame was Kotak Mahindra Bank.
Sample size- Sample size is the number of elements to be included in a study. Keeping in
mind all the constraints 50 respondents were selected.
Sample unit- Sampling unit is the basic unit containing the elements of the universe to
be sampled. The sampling unit of our study is general public.
Sampling Techniques- The sampling techniques used were convenience technique and
simple random sampling technique.
Data Collection and Interpretation: - Research work is exploratory in nature.
a) Sources of data collection: Information has been collected from both Primary and Secondary
sources of data collection.
Primary sources- Primary data are those, which are collected are fresh and for the first
time, and thus happen to be original in character. Primary data had been collected by
conducting surveys through questionnaire, which include both open- ended and close-
ended questions and personal and telephonic interview.
Secondary sources- Secondary data are those, which have already been collected by
someone else, which already had been passed through the statistical process. Secondary
data had been collected through websites, newspapers and journals.
b) Tools of Data Analysis and Presentation:
To analyze the data obtained with the help of questionnaire.
LIMITATION OF THE STUDY
However I shall try my best in collecting the relevant information for my research report, yet
there are always some problems faced by the researcher. The prime difficulties which I face in
collection of information are discussed below:-
1. Short time period: The time period for carrying out the research was short as a result of
which many facts have been left unexplored.
2. Lack of resources: Lack of time and other resources as it was not possible to conduct
survey at large level.
3. Unwillingness of respondents: While collection of the data many consumers were
unwilling to fill the questionnaire. Respondents were having a feeling of wastage of time
for them.
4. Small area for research: The area for study was Bathinda, which is quite a small area to
judge job satisfaction level.
BIBLIOGRAPHY
WEBSITES
www.religareonline.com www.religare.in
BOOKS
Religare E-Spot Pocket Book