A Comparative Study Study of Internal and Front Charges Levied by Karvey. Geogit and Angle Brokeing

7/29/2019 A Comparative Study Study of Internal and Front Charges Levied by Karvey. Geogit and Angle Brokeing

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Contents

I. Preface.. 2

II. Acknowledgement 3

III. Executive Summary.. 4Industry Profile... 6

1.1 Indian capital market-an Overview... 71.2 Indian Stock Exchanges 91.3 Over the counter Exchange of India (OTCEI)..... 121.4 Indian Financial Sector 161.5 Market Players in Broking Industry. 23

2. Company Profile 35

2.1 Introduction of Reliance enterprise..362.2 About reliance money.. 41

3. Research Methodology.. 43

3.1 Statement of Problem... 443.2 Research Objectives 443.3 Scope of Research... 443.4 Data Sources. 453.5 Utility of the Study....... 453.6 Information about Stock Brokers 46

3.7 Limitation of Study 61

4. Finding & Suggestion.. 61

5. Conclusion 62

6. Bibliography.. 63

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CH: 1

INDUSTY

PROFILE2


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INDIAN CAPITAL MARKET: AN OVERVIEW

Evolution of Indian Capital Market

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200

years ago. The earliest records of security dealings in India are meager and obscure. The

East India Company was the dominant institution in those days and business in its loan

securities used to be transacted towards the close of the eighteenth century.

By 1830's business on corporate stocks and shares in Bank and Cotton presses took place

in Bombay. Though the trading list was broader in 1839, there were only half a dozen

brokers recognized by banks and merchants during 1840 and 1850.

The 1850's witnessed a rapid development of commercial enterprise and brokerage

business attracted many men into the field and by 1860 the number of brokers increased

into 60.

In 1860-61 the American Civil War broke out and cotton supply from United States of

Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers

increased to about 200 to 250. However, at the end of the American Civil War, in 1865, a

disastrous slump began (for example, Bank of Bombay Share which had touched Rs 2850

could only be sold at Rs. 87).

At the end of the American Civil War, the brokers who thrived out of Civil War in 1874

found a place in a street (now appropriately called as Dalal Street) where they would

conveniently assemble and transact business. In 1887, they formally established in

Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively

known as The Stock Exchange "). In 1895, the Stock Exchange acquired a premise in

the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay was

consolidated.

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Other leading cities in stock market operations

Ahmedabad gained importance next to Bombay with respect to cotton textile industry.

After 1880, many mills originated from Ahmedabad and rapidly forged ahead. As new

mills were floated, the need for a Stock Exchange at Ahmedabad was realized and in1894 the brokers formed "The Ahmedabad Share and Stock Brokers' Association".

What the cotton textile industry was to Bombay and Ahmedabad, the jute industry was to

Calcutta. Also tea and coal industries were the other major industrial groups in Calcutta.

After the Share Mania in 1861-65, in the 1870's there was a sharp boom in jute shares,

which was followed by a boom in tea shares in the 1880's and 1890's; and a coal boom

between 1904 and 1908. On June 1908, some leading brokers formed "The Calcutta

Stock Exchange Association".

In the beginning of the twentieth century, the industrial revolution was on the way in

India with the Swadeshi Movement; and with the inauguration of the Tata Iron and Steel

Company Limited in 1907, an important stage in industrial advancement under Indian

enterprise was reached.

Indian cotton and jute textiles, steel, sugar, paper and flourmills and all companies

generally enjoyed phenomenal prosperity, due to the First World War.

In 1920, the then demure city of Madras had the maiden thrill of a stock exchange

functioning in its midst, under the name and style of "The Madras Stock Exchange" with

100 members. However, when boom faded, the number of members stood reduced from

100 to 3, by 1923, and so it went out of existence.

In 1935, the stock market activity improved, especially in South India where there was a

rapid increase in the number of textile mills and many plantation companies were floated.

In 1937, a stock exchange was once again organized in Madras - Madras Stock Exchange

Association (Pvt) Limited. (In 1957 the name was changed to Madras Stock Exchange

Limited).

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Lahore Stock Exchange was formed in 1934 and it had a brief life. It was merged with

the Punjab Stock Exchange Limited, which was incorporated in 1936.

Indian Stock Exchanges - An Umbrella Growth

The Second World War broke out in 1939. It gave a sharp boom, which was followed by

a slump. But, in 1943, the situation changed radically, when India was fully mobilized as

a supply base.

On account of the restrictive controls on cotton, bullion, seeds and other commodities,

those dealing in them found in the stock market as the only outlet for their activities.

They were anxious to join the trade and numerous others swelled their number. Many

new associations were constituted for the purpose and Stock Exchanges in all parts of the

country were floated.

The Uttar Pradesh Stock Exchange Limited (1940), Nagpur Stock Exchange Limited

(1940) and Hyderabad Stock Exchange Limited (1944) were incorporated.

In Delhi two stock exchanges - Delhi Stock and Share Brokers' Association Limited and

the Delhi Stocks and Shares Exchange Limited - were floated and later in June 1947,

amalgamated into the Delhi Stock Exchange Association Limited.

Post-independence Scenario

Most of the exchanges suffered almost a total eclipse during depression. Lahore

Exchange was closed during partition of the country and later migrated to Delhi and

merged with Delhi Stock Exchange.

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Bangalore Stock Exchange Limited was registered in 1957 and recognized in 1963. Most

of the other exchanges languished till 1957 when they applied to the Central Government

for recognition under the Securities Contracts (Regulation) Act, 1956. Only Bombay,

Calcutta, Madras, Ahmedabad, Delhi, Hyderabad and Indore, the well-established

exchanges, were recognized under the Act. Some of the members of the other

Associations were required to be admitted by the recognized stock exchanges on a

concessional basis, but acting on the principle of unitary control, all these pseudo stock

exchanges were refused recognition by the Government of India and they thereupon

ceased to function.

Thus, during early sixties there were eight recognized stock exchanges in India

(mentioned above). The number virtually remained unchanged, for nearly two decades.During eighties, however, many stock exchanges were established: Cochin Stock

Exchange (1980), Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982),

and Pune Stock Exchange Limited (1982), Ludhiana Stock Exchange Association

Limited (1983), Gauhati Stock Exchange Limited (1984), Kanara Stock Exchange

Limited (at Mangalore, 1985), Magadh Stock Exchange Association (at Patna, 1986),

Jaipur Stock Exchange Limited (1989), Bhubaneswar Stock Exchange Association

Limited (1989), Saurashtra Kutch Stock Exchange Limited (at Rajkot, 1989), Vadodara

Stock Exchange Limited (at Baroda, 1990) and recently established exchanges -

Coimbatore and Meerut. Thus, at present, there are totally twenty-one recognized stock

exchanges in India excluding the Over The Counter Exchange of India Limited (OTCEI)

and the National Stock Exchange of India Limited (NSEIL).

The Table given below portrays the overall growth pattern of Indian stock markets since

independence. It is quite evident from the Table that Indian stock markets have not only

grown just in number of exchanges, but also in number of listed companies and in capital

of listed companies. The remarkable growth after 1985 can be clearly seen from the

Table, and this was due to the favoring government policies towards security market

industry.

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Growth Pattern of the Indian Stock Market

Sl.No.As on 31stDecember

1946 1961 1971 1975 1980 1985 1991 1995

2 No. ofListed Cos. 1125 1203 1599 1552 2265 4344 6229 8593

3No. of StockIssues ofListed Cos.

1506 2111 2838 3230 3697 6174 8967 11784

4Capital of ListedCos. (Cr. Rs.)

270 753 1812 2614 3973 9723 32041 59583

5Market value ofCapital of ListedCos. (Cr. Rs.)

971 1292 2675 3273675025302 110279 478121

6

Capital per

Listed Cos. (4/2)(Lakh Rs.)

24 63 113 168 175 224 514 693

7

Market Value ofCapital per ListedCos. (Lakh Rs.)(5/2)

86 107 167 211 298 582 1770 5564

8Appreciated valueof Capital perListed Cos. (Lakh Rs.)

358 170 148 126 170 260 344 803

Source: Various issues of the Stock Exchange Official Directory, Vol.2 (9) (iii), Bombay

Stock Exchange, Bombay.

Trading Pattern of the Indian Stock Market

Trading in Indian stock exchanges is limited to listed securities of public limited

companies. They are broadly divided into two categories, namely, specified securities

(forward list) and non-specified securities (cash list). Equity shares of dividend paying,

growth-oriented companies with a paid-up capital of at least Rs.50 million and a market

capitalization of at least Rs.100 million and having more than 20,000 shareholders are,

normally, put in the specified group and the balance in non-specified group.

Two types of transactions can be carried out on the Indian stock exchanges: (a) spot

delivery transactions "for delivery and payment within the time or on the date stipulated

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when entering into the contract which shall not be more than 14 days following the date

of the contract: and (b) forward transactions "delivery and payment can be extended by

further period of 14 days each so that the overall period does not exceed 90 days from the

date of the contract". The latter is permitted only in the case of specified shares. The

brokers who carry over the outstanding pay carry over charges (cantango or

backwardation) which are usually determined by the rates of interest prevailing.

A member broker in an Indian stock exchange can act as an agent, buy and sell securities

for his clients on a commission basis and also can act as a trader or dealer as a principal,

buy and sell securities on his own account and risk, in contrast with the practice

prevailing on New York and London Stock Exchanges, where a member can act as a

jobber or a broker only.

The nature of trading on Indian Stock Exchanges are that of age old conventional style of

face-to-face trading with bids and offers being made by open outcry. However, there is a

great amount of effort to modernize the Indian stock exchanges in the very recent times.

Over The Counter Exchange of India (OTCEI)

The traditional trading mechanism prevailed in the Indian stock markets gave way to

many functional inefficiencies, such as, absence of liquidity, lack of transparency, unduly

long settlement periods and benami transactions, which affected the small investors to a

great extent. To provide improved services to investors, the country's first ringless,

scripless, electronic stock exchange - OTCEI - was created in 1992 by country's premier

financial institutions - Unit Trust of India, Industrial Credit and Investment Corporation

of India, Industrial Development Bank of India, SBI Capital Markets, Industrial Finance

Corporation of India, General Insurance Corporation and its subsidiaries and CanBank

Financial Services.

Trading at OTCEI is done over the centres spread across the country. Securities traded on

the OTCEI are classified into:

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Listed Securities - The shares and debentures of the companies listed on the OTC

can be bought or sold at any OTC counter all over the country and they should not

be listed anywhere else

Permitted Securities - Certain shares and debentures listed on other exchanges and

units of mutual funds are allowed to be traded

Initiated debentures - Any equity holding at least one lakh debentures of a

particular scrip can offer them for trading on the OTC.

OTC has a unique feature of trading compared to other traditional exchanges. That is,certificates of listed securities and initiated debentures are not traded at OTC. The

original certificate will be safely with the custodian. But, a counter receipt is generated

out at the counter which substitutes the share certificate and is used for all transactions.

In the case of permitted securities, the system is similar to a traditional stock exchange.

The difference is that the delivery and payment procedure will be completed within 14

days.

Compared to the traditional Exchanges, OTC Exchange network has the following

advantages:

OTCEI has widely dispersed trading mechanism across the country which

provides greater liquidity and lesser risk of intermediary charges.

Greater transparency and accuracy of prices is obtained due to the screen-

based scripless trading.

Since the exact price of the transaction is shown on the computer screen, the

investor gets to know the exact price at which s/he is trading.

Faster settlement and transfer process compared to other exchanges.

In the case of an OTC issue (new issue), the allotment procedure is completed

in a month and trading commences after a month of the issue closure, whereas

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it takes a longer period for the same with respect to other exchanges. Thus,

with the superior trading mechanism coupled with information transparency

investors are gradually becoming aware of the manifold advantages of the

OTCEI.

National Stock Exchange (NSE)

With the liberalization of the Indian economy, it was found inevitable to lift the Indian

stock market trading system on par with the international standards. On the basis of the

recommendations of high powered Pherwani Committee, the National Stock Exchange

was incorporated in 1992 by Industrial Development Bank of India, Industrial Credit and

Investment Corporation of India, Industrial Finance Corporation of India, all Insurance

Corporations, selected commercial banks and others.

Trading at NSE can be classified under two broad categories:

(a) Wholesale debt market and

(b) Capital market.

Wholesale debt market operations are similar to money market operations - institutions

and corporate bodies enter into high value transactions in financial instruments such as

government securities, treasury bills, public sector unit bonds, commercial paper,

certificate of deposit, etc.

There are two kinds of players in NSE:

(a) Trading members and

(b) Participants.

Recognized members of NSE are called trading members who trade on behalf of

themselves and their clients. Participants include trading members and large players like

banks who take direct settlement responsibility.

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Trading at NSE takes place through a fully automated screen-based trading mechanism,

which adopts the principle of an order-driven market. Trading members can stay at their

offices and execute the trading, since they are linked through a communication network.

The prices at which the buyer and seller are willing to transact will appear on the screen.

When the prices match the transaction will be completed and a confirmation slip will be

printed at the office of the trading member.

NSE has several advantages over the traditional trading exchanges. They are as follows:

NSE brings an integrated stock market trading network across the nation.

Investors can trade at the same price from anywhere in the country since inter-

market operations are streamlined coupled with the countrywide access to the

securities.

Delays in communication, late payments and the malpractices prevailing in the

traditional trading mechanism can be done away with greater operational

efficiency and informational transparency in the stock market operations, with the

support of total computerized network.

Unless stock markets provide professionalised service, small investors and foreign

investors will not be interested in capital market operations. And capital market being one

of the major sources of long-term finance for industrial projects, India cannot afford to

damage the capital market path. In this regard NSE gains vital importance in the Indian

capital market system.

After adjustments for purchasing power parity, Indias economy is the

fourth largest in the world in terms of Gross Domestic Product (GDP).

An efficient securities market provides the necessary channel for flow

of resources from the providers of capital to the users of capital for

economic development. The overall growth of the economy and

economic activity are also important factors, which determine

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availability of resources. The following table illustrates India's GDP

growth between 2004 and 2007.

Indian Financial Sector

The Indian financial services industry has experienced significant

growth in the last few years. There has been a Considerable

broadening and deepening of the Indian financial markets due to

various financial market reforms undertaken by the Indian regulators,

the introduction of innovative financial instruments in recent years and

the entry of sophisticated domestic and international financial services

participants. Sectors such as banking, asset management and

brokerage have been liberalised to allow private sector involvement,

which has contributed to the development and modernisation of the

financial services sector. This is particularly evident in the nonbanking

financial services sector, such as brokerage, residential mortgage and

insurance services, where new

products and expanding delivery channels have helped these sectors

to achieve high growth rates recently.

Financial services accounted for approximately 14% of total GDP in

fiscal 2007.

The combined average daily turnover of the BSE and the NSE for

different market segments has increased from approximately Rs. 4.8

billion in March 1996 to approximately Rs. 312.1 billion in March 2006.

Over thisperiod, there has also been a substantial growth in the market for

other financial products such as insurance, and mutual funds.

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Regulatory Developments

AT The following are certain regulatory developments in the Indian

financial sector since India's economic reforms.

Securities and Exchange Board of India (SEBI) Act, 1992

As part of the reforms process, the Capital Issues (Control) Act, 1947

was repealed in 1992 and replaced by the SEBI Act, 1992, paving the

way for market-determined allocation of resources. Under the SEBI Act,

1992, issuers complying with eligibility criteria are allowed the freedom

to issue securities market-determined rates. SEBI exercises control

over the market through the issuance of guidelines and rules for

various capital market activities and of regulations for intermediaries

and stock exchanges.

The SEBI Act established SEBI with the primary objective of protecting

the interests of investors in securities. SEBI requires critical data

regarding all relevant market participants to be disclosed on specified

forms. The Investor Education and Protection Fund was established for

the promotion of awareness among investors and

protection of investor interests. The Department of Economic Affairs,Department of Company Affairs, SEBI and the stock exchanges have

set up an investor grievance division for redressing investor

grievances. The exchanges also maintain investor protection funds to

satisfy certain investor claims.

Screen Based Trading

Trading on stock exchanges in India used to take place through an

open outcry system without use of information technology for

immediate matching or recording of trades. In order to provide

efficiency, liquidity and transparency, in 1996 the NSE and the BSE

introduced a nationwide, on-line and fully-automated screen based

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trading system. Introduction of these trading systems has been one of

the key developments in the Indian

capital market.

Trading Cycle

In the early 1990s, trades were accumulated over a trading cycle and

at the end of the cycle, trades were netted out and followed by

payment of cash and delivery of securities in order to settle the

balance. This trading cycle varied from 14 days for specified securities

to 30 days for others and settlement took another fortnight. In order

to reduce large open positions, the trading cycle was reduced to a

week. The stock exchanges, however, continued to have different

weekly trading cycles, which enabled shifting of positions from one

exchange to another. Rolling settlement on a T+5 basis was introduced

in 1996 and as a result, for specified scrips, the trading cycle was

reduced to one day. It was made mandatory for all stock exchanges to

follow a uniform weekly trading cycle in respect of scrips not under

rolling settlement. All scrips were moved to the rolling settlement in

December 2001. The settlement period has been reducedprogressively from T+5 to T+3 days to the current T+2 day settlement

cycle.

Derivatives Trading

To assist market participants in managing risks better than through

hedging and arbitrage, the Securities Contracts (Regulation) Act, 1956

(SCRA) was amended in 1995 to lift the ban on options in securities.

The SCRA was amended further in December 1999 to expand the

definition of securities to include derivatives so that the whole

regulatory framework governing trading of securities could apply to

trading of derivatives as well.

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In the meantime exchanges developed infrastructure and the

information systems required to implement trading discipline in

derivative instruments. Derivative trading commenced in June 2000 on

the NSE and the BSE. The market presently offers index futures and

index options on three indices and stock options and stock futures on

individual stocks (presently 187 stocks on the NSE as of June 2007)

and futures in interest rate products like notional 91-day T-bills and

notional 10-year bonds.

Demutualisation (Segregation of ownership from management)

Historically, brokers owned, controlled and managed stock exchanges

in India. The Government proposed in March 2001 to corporatise the

stock exchanges and thereby segregate ownership, management and

trading membership. A few stock exchanges have already initiated the

demutualisation process. The Government has offered a variety of tax

incentives to facilitate corporatisation and demutualisation of stock

exchanges. The NSE has adopted a demutualised governance structure

where ownership, management and trading are separated to help

reduce conflicts of interest. The BSE also recently has completed

demutualisation.

Depositories Act

The settlement system on Indian stock exchanges gave rise to

settlement risk due to the lapse of time before trades were settled. The

historical process of physically moving securities among different

parties took time with the risk of delay along the chain. A significant

proportion of transactions ended up as bad deliveries due to non-

compliance with paperwork. This added to costs, restricted liquidity

and made investor grievance redressal time consuming and at times

intractable. To obviate these problems, the Depositories Act, 1996 was

passed. As of mid-June, 2007, more than 6,670 companies were

connected to NSDL and 5,660 to CDSL. All actively traded scrips are

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now held, traded and settled in uncertificated form. Uncertificated

settlement (known in India

as Dematerialised Settlement) accounts for over 99% of turnover

settled by delivery. This has substantially eliminated bad deliveries and

associated settlement problems. To prevent physical certificates from

coming into circulation, it has been made mandatory for all new public

offerings to be traded in uncertificated form. The admission to a

depository for holding securities in uncertificated form has been made

a prerequisite for making a public offering, rights issue or an offer for

sale.

Indian Capital Markets

There were 1,228 companies listed on the National Stock Exchange

and 4,821 companies listed on the Bombay Stock Exchange as of

March 31, 2007. In recent years, the capital markets have undergone

substantial reforms in regulation and supervision. Reforms, particularly

the establishment of SEBI, market-determined prices and allocation of

resources, screen-based nation-wide trading, T+2 settlement, scripless

settlement and electronic transfer of securities, rolling settlement and

derivatives trading have greatly improved both the regulatory

framework and efficiency of trading and settlement. There presently

are 22 recognized stock exchanges in India, as well as the over-the-

counter Exchange of India (OTCEI) for small and new companies and

the NSE, which

was set up as a model exchange to provide nationwide services to

investors. In 2003, the NCDEX and the MCX were set up for trading of

futures in various commodities.

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Primary Equity Market

The primary segment of the capital markets in India has been

witnessing a surge in activity driven by the strong fundamentals of the

Indian economy, improved corporate results, a buoyant secondary

market, structural reforms by the Government and an investor-friendly

framework. and retail investors.

.

Secondary Equity Market

The Indian equity markets have been witnessing strong growth since

2003 with the benchmark BSE Sensex crossing the 14,500 mark in

February 2007 from 6,600 in January 2005 and 5,200 in September2005

The average daily turnover at the NSE and for different market

segments has increased from approximately Rs. 68 billion in 2001 to

approximately Rs. 382 billion in March 2007. Over this period, there

also has been a substantial growth in the market for other financial

products, such as insurance and mutual funds.

Equity Brokerage

The evolution of the Indian capital markets has stimulated rapid

consolidation due to increased trading volumes, increased regulation,

customer sophistication, better technology and increased back-office

requirements. As a result, significant changes have been introduced to

strengthen risk management systems. Changes in the

regulatory framework and settlement mechanics have resulted in the

smaller operating participants losing their market share, leading to a

consolidation in the industry.

The market share of the top five brokers on the NSE has increased

from 12% in Fiscal 2004 to approximately 15% in March 2007. The

market share of the top ten brokers on the NSE has grown from

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approximately 17% in Fiscal 2004 to 24% in March 2007, and the share

of the top 25 brokers on the NSE has grown from 30% in Fiscal 2004 to

43% in March 2007. These figures indicate a long-term consolidation

process in a highly fragmented securities brokerage industry, with

numerous smaller participants exiting the market and larger brokers

gaining market share. Market consolidation is even more pronounced

in the on-line trading category where the top five brokers control

almost the entire market. The rapid growth in on-line trading volumes

can be attributed to growing sophistication of retail investors,

availability of reliable Internet connectivity and sophistication of

Internet-based trading products. The following table illustrates the

trading volume on the NSE and the percentage traded by the top

brokers from 2003.

Internet Trading

At the end of March 2006, 142 members on the Capital Market

segment and 127 on the Futures and Options Segments were

permitted to allow investors web-based access to the NSEs trading

system. The members of the Exchange in turn had registered

1,443,291 clients for web-based access as of March 31, 2006. In the

NSE Capital Market segment in Fiscal 2006, approximately Rs. 183

billion, constituting 11.68% of total trading

volume, were routed and executed through the Internet. The following

table gives the growth of Internet trading.

Mutual Funds

As of March 31, 2007, there were 756 mutual funds in India with total

assets under management of Rs. 2,544 billion. From 1963 to 1987, Unit

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Trust of India was the only mutual fund operating in the country. It was

set up in 1963 at the initiative of the government and the RBI. From

1987, several other public sector mutual funds

entered this sector. These mutual funds were established by public

sector banks, the Life Insurance Corporation of India and the General

Insurance Corporation of India. The mutual funds industry was opened

up to the private sector in 1993. The industry is regulated by the SEBI

(Mutual Fund) Regulation, 1996.

The mutual fund industry has also experienced considerable activity

over last few years with total assets under management growing from

Rs. 1,396 billion as of March 31, 2004 to Rs. 3,263 billion as of March

31, 2007. In recent years, the industry has witnessed consolidation in

favour of private sector mutual funds whose assets under management

have grown from Rs. 1,049 billion as of March 31, 2004 to Rs. 2,567

billion as of March 31, 2007. Most of the funds that dominate the

sector are open-ended funds.

The mutual fund sector can broadly be divided based on the nature of

the schemes launched by the mutual funds. The fixed income asset

class, which comprises income, liquid, gilt and money market schemes,

comprises a major share of total funds under management. The other

two asset classes are equity and balanced schemes, which have

experienced significant growth recently on account of the robust stock

market.

Insurance Sector

The insurance market was opened to the private sector in 2001. Since

then, various foreign and Indian private sector participants have

targeted market potential by providing a range of customized

products. Major foreign insurance companies such as New York Life,

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Aviva, Tokio Marine, Allianz, Standard Life, Lombard General, AIG, AMP

and Sun Life, among others, have announced joint ventures in both life

and non-life insurance areas. As a result of the increased competition,

state sector companies have become more aggressive in their product

offerings, marketing strategies and distribution channels. According to

the Insurance Regulatory Development

Authority, the life insurance market has grown by 120% in the period

from April 1, 2006 to February 28, 2007. The general insurance market

has grown by 23.7% during the same period.

Investment Banking

With the Indian economy maturing, Indian companies are also

evaluating different means to raise capital in the equity and debt

capital markets. The volume of activity in equity capital markets as

well as the transaction advisory market have increased significantly.

With the increase in activity levels and entry of foreign investment

banks in India, competition is intensifying. However, there is a large

number of small and mid-sized companies, which is increasing the

market size of investment banking activities.

Transaction Advisory

There has been a significant increase in the merger and acquisition

activities by Indian companies in recent years. This continuing increase

is evident in the inbound, outbound and domestic segments.

Equity Capital Markets

With the growth in various sectors of the Indian economy, Indian

companies have been increasingly raising funds in both domestic and

international equity capital market. The following chart indicates the

total volume of transaction advisory and equity activity in India for last

three years:

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Industry Outlook

Existing low penetration levels, increasing affordability of credit and

rising income levels have led to a growing demand for retail financial

products. India has a substantial retail investor base throughout the

country that has a large pool of untapped surplus funds. The market

confidence of small investors has increased with growing levels of

education and financial awareness, and the strengthening of

regulatory systems. The financial services

Industry is undergoing consolidation. In the future, it is expected that

market share will be captured by financial services providers who can

offer a complete range of financial products and services.

Companies in the broking industry

Dan Technologies, Delhi

Offering services such as security consulting services, security implementation

services, security engineering services, safety consulting services, access control services

and intrusion detection services.

Exponential Commodity Services Private Limited

Leading financial management and broking houses engaged in stocks, derivatives and

commodities trading on the major capital market exchanges in india like NSE/ BSE and

commodities exchanges, NCDEX (National Commodities and Derivatives Exchange).

Appuonline Consultancy Services Pvt. Ltd.

Share Broking, Mutual Fund Distribution

Pioneer Investment Consultancy

Provides services of stock exchange, empanelled brokers, mutual funds, secondary market

debt papers, physical/demat listed/delisted shares of indian companies.

Fundquest Consulting

Offering services like working capital funding services, private equity services, venture capital

services, bridge capital services and foreign direct investment services.

Vittam Advisors Private Limited

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Providing all kinds of equity share services, mutual funds services, commodity futures

services etc.

Bharti Fexp

Providing equity anaysis services, commodity analsis services, sub broker services, fund

manager services etc.

Niki Impex

Providing share tips, commodity tips, investment recommendations etc. service for Indian

share.

Diginet Software

Providing all kinds of stock exchange.

Rajive & Co

Commodity brokers of sugar.

Stock Onlinee

Providing all kinds of stock broking services.

Navnitjoshi Securities

Providing all kinds of trading in equity, share investments, mutual funds etc.

Apex Recruitment & Management Consultants

Offering services of stock market.

1st Financial & Management Services

Providing all kinds of stock market services, mutual funds services etc.

Securities Trading Corporation India Limited

Underwriters of government securities and bonds, treasury bills, PSU bonds, short term

investments and call money, issued by public sector undertakings.

Hira Stocks Solution Private Limited

Providing all types of equity investment advisor, equity shares consultants etc.

Aadvance Solutions

Providing all kinds of equity services, commodity services, forex services, mutual fund

services, Ipo services etc.

Navkar Equity Solutions Private Limited

Providing share brokers services.

Gupta Promoters

Involved in offering brokerage services.

Sugal & Damani Lottery Agency Private Limited

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Offering consulting services such as stock broking services.

Vasanti Share Brokers Limited

Providing services of bse stock market broker, nse stock market broker, mcx stock market

broker, best indian stock broker, top indian stock market broker etc.

B. L. B. Limited

Providing all kinds of share broking services.

Agrawal Invesment Consultants

Engaged in providing services like mutual fund investment services and share trading

services.

Vigilant Technologies

Manufacaturers and exporters of cctv, remote survillance, guard monitoring system, access

control system, lpg gas leak detector and burglar alarm etc

Sun Securities

Providing all kinds of mutual funds, sbi mutual funds, hdfc mutual funds, birla sun life mutual

funds, franklin templeton mutual funds, reliance mutual funds, fidelity mutual funds etc.

Navia Markets Limited

Provides all types of mutual funds service, equity trading service, online nri trading service

etc.

One Source Financial Services

Offering mutual funds services and equity trading services.

Xpertz Broking Private Limited

Providing all kinds of mutual funds, govt securities, bonds, ipos, share trading etc.

Bonanza Portfolio

Engaged in providing share trading services.

aypee Capital Services Limited

Provides trading, research, advisory services for shares.

Ace Tech Agencies

Providing services of commission agents.

SDPL

Provides services as investment consultants.

Tata Share Registry Limited

Providing share registry services.

Refco

Provides share brokerage services.

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B. N. R. Capital Services Private Limited

Engaged in providing services of stock broker services and share broker services.

Prudential Capital Investments

Providing share brokerage services.

Jm Morgan Stanley Fixed Income Securities Private Limited

Offering broker services, w t broker services and stock brokers services.

T. M. P. International Traders

Involved in offering share commodities services and capital market services

Agroy Finance & Investment Limited

Providing stock broking, investment banking, accounts, audit and taxation services.

Rachana Investment & Finance

Providing services of share stock brokers and financial consultants.

Metal Wood Systems

Providing share related services.

Refco Commodities India Private Limited

Providing services like advisory and broking of commodity fixtures.

Hi Gain Securities

Providing services as stock brokers.

Smc Global Securities Limited

Dealers of share broking, mutual funds etc.

El & En Education Trust

Provides services through investments & small savings.

Target

Providing professional guidence as technical analyst for buying and selling shares listed on

bombay stock exchange and national stock exchange.

Investment Point

Provides services in investment consultancy.

S. P. K. International, GurgaonInternational broker of coal, petroleum and steel.

S. S. A. Financial Services

Providing share related services.

Aeonian Investment Company Limited

Engaged in providing services of share consultant and investment in share.

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Pelf Finestock

Offering services like nse consultancy services, bse consultancy services and commodity

consultancy services.

Angel Broking Limited, Mumbai

Providing services related to shares and stocks. V. S. Consultants, Mumbai

Indian stock consultants with advise on investments on Indian bourses

Zen Capital Holdings

Providing services of finance against shares of bse/nse listed companies.

Tachukdi

Provides broker services.

Commodities Power

Providing all kinds of stocks services.Association Of NSE Member Of India

Dealing into NSE stock and brokers.

Capital Via International Services

Providing services for stock exchange consultancy.

Srisivan Foods India Private Limited

Providing brokerages.

Almonds Capital Market Private Limited

Offering online share trading services and equity trading services.

Legend Securities Limited

Provides services as share broker.

B. L. B. Limited, New Delhi

Providing services related to sale purchase of shares.

N. C. C. Telecom Private Limited

Manufacturers of building automation system , video apartment and access system, building

intercom and security system.

Mata Securities India Pvt. Ltd.

Indian debt broking house

Vidkris Finserve

Providing services for nse, bse, ncdex, mcx and consultancy in mutual funds.

J. K. Consultancy

Providing security consultancy services.

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Refco-Sify Securities India Private Limited

Providing stock broking services.

Abhipra Capital Ltd.

Provide services like online share trading, depository services, money changing services,

legal consultancy, Brokering services with NSE, BSE, DSE etc. Market Creators Limited


Depe Global Shipping Agencies Private Limited

Providing all types of services related to chartering brokers.

Amit Nalin Securities Private Limited

Provides services in stock broking.

Kanha Fincap Private Limited

Providing services related to shares and stocks brokers.

Vruddhi Capitals & Commodities

Providing services like online share trading and commodities trading.

C. R. V. Consultants

Providing stock market consultancy services.

Pushp Consulting

Providing advisory services for trading & investment of share and govt. securities.

Dalmia Securities Ltd.

Provide Services related to Stock - Brokers , Depository participant, Dematerialisation , NRI

Investment in India, Shares & debentures & Bonds

Aditya Consultant, Pune

Offering stock market, commodity market, portfolio consultants, securities consultants etc.

S. N. Dhawan & Company

Providing stock and share brockers services.

Geojit Securities Limited, Kochi

Providing all types of stock and share broking services.

Shekhar Resorts

Providing services of security solutions for a five star hotel.

Financial Consultants

Providing all kinds of share trading services, stock broking services etc.

Investment Intermediates Limited

Investment Intermediates Limited is a corporate member of mumbai stock exchange and

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national stock exchange.

Rajpoot Securities Co.

Providing security solutions.

Sino Credits & Leasing Limited

Provides stock and share brokers services. Commodity Consultants International, Mumbai

Providing consultancy and broker services for steel, stainless steel, rice, sugar, spices and

other commodities.

Contemporary Targett Limited

Provides brokers for tea and tea related products.

Interem (india) Private Limited

Providing Services of broker.

G. K. Shares And Stocks

Providing services as a intermediary.

IIT Investrust Limited

Provides services of stock broking house

Jpr Agencies Private Limited

Providing services of broker services.

Motilal Oswal Commodities Brokers Private Limited

Providing stock and commodity brokers services.

Bijoy Kumar Gupta

Offering consulting services such as brokers, comission agent and intermediary service.

Bhartiya Gurukul Private Limited

Providing consultancy services for stock marketing services and stock broking services.

J.Thomas & Company Private Limited

Provides brokers for tea.

Sathi Share

Engaged in providing stock trading services.

Force Tech Security India Private LimitedProvide security consultancy services.

Arthi Consultants Private Limited

Offering services such as share registrars services and transfer agents services.

SR Khandelwal & Co.

We offers share broker.

Vimal Consultant

Providing shares brokerage services.

Aan Consultants

Providing secondary market in equities in stock exchange services.

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Aplomb Corporation

Providing security services.

Shares & Commodities

Providing services of brokers of shares and commodities in NSE, BSE, MCX, NCDEX.

Equity Analysis, Inc.

Providing all kinds of stock investment services, stock analysis services, portfolio service

services, online help services etc.

Source One

Offering consultancy for equities trading services.

Bazaar Buzz

Trading in stock market.

FFE Minerals India Ltd., Chennai

Offers broker service and commissioning service.

Doon Stock Brokers Private Limited

Providing services related to shares, stock brokers and depository services.

Sai Nath Investments

Providing services related to shares and stocks brokers.

Provides stock broking services, securities dealing, advisory services etc.

S. S. M. Comex

Deals in multi commodity exchange.

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Security Concepts

Provides security consultacy services.

Shri Avs Holdings

Providing all kinds of online share trading services.

Lion Financial Services

Providing all kinds of stock broking services.

Commodities Broking Company

Providing consultancy services for share broking and share commodities.

Globe Detective Agency Private Limited, Delhi

Provides security consultancy services.

Lahiri Online

Providing services related to technical analysis on indian share market based on proven and

most reliable softwares of international acclaim.

Rajrani

acts as stock lot broker

Infokush

Dealing in software relating stockmarket

Orphan Group Of Industries

Providing all kinds of shares, mutual fund etc.

Netgains Technologies

Providing services like stocks online for stock brokers and depository participants.

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Coimbatore Stock Exchange Limited

Provide stock exchange benefits.

CCMS (P) Ltd

Provide services of stock brokers and demat services.

Krishna Share Astrology Consultant

Provide brokrage services for shares.

Anagram Stockbroking Limited, Pune

Involved in offering share broking consultancy services, consultancy services and share

negotiators consultancy services.

Joy Shipping Servicespvt Limited

Offer sevices like broker services.

Marshal Security Services

Provides security services.

Reliance Money Limited

Providing share consultancy services.

B. N. Rathi Securities Limited

Provide services such as share brokers.

J. V. Capital Services

Providing stockbrokers services, specialising in domestic and international arbitrage and

catering to nri investments.

Soham Sharma

Providing consultancy services for share investment, loans and speculation services. Also

provide services in the field of family, politics, property, investments, career, vaastu shastra,

property investments, marriage life, traveling and speculation.

Gupta Commodities Private Limited

Providing commodities broking service, share broking service, stocks broking service etc.

G. C. M. Securities Limited

Providing services of online share trading with positive recomendation.

ICICIGold.com

Dealing into share and gold.

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I. C. L. Consultancy Services Private Limited

Offering mutual fund investment services.

Karthick

Provide services such as shares.

Cammron Security Systems

Providing electronic security consultancy services.

Aarnik Securities

Offering share brokers and equity mutual funds brokers.

Semri Capitals, Delhi

Providing share consultancy services.

Apollo Sindhoori Capital Investments Limited

Providing online share trading services.

Sourabh Gilts & Securities Limited

Providing services like psu bonds, rbi bonds, capital gain bonds, public sector undertaking

bonds, mutual funds and government securities.

Shrisharepandit Consultants Private Limited

Providing services related to share market.

Pearl Shipping Agencies

Provide Agency Services & Chartering Brokers.

Adinath Capital Services Limited

Provides share broker services.

Kingdom Express

Its an international trade agent, on commission basis. Our services are dealing in rice,

refuse sacks, mosquito coil, construction machinery, furniture, marine products, iron ore,

metal scraps.

T. S. K. & Company

Offering consulting services such as stock investing services.

RBK Share Broking Limited

Providing services of stock broking.

Alankit Assignments Limited

One of the national stock exchange member.

Kakani Securities Private Limited

Providing all types of securities services.

A K Capital Services Limited

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Stock Brokers and member NSE & DSE.

Growmore Securities


Global Detective Company

Providing security consultant services.

R.K.Global Shares & Securities Ltd.

Offers share purchase and sale related services.

Lyman Container Line

Engaged in providing services like broker.

Viratech Enterprises Pvt. Ltd.

Provides services related to stock quotes for the Bombay, National & Calcutta Stock

Exchanges for use in all popular Technical Analysis programmes

True value Securities & Fin Private Limited

Providing national stock exchange services.

Jayacon International

Provides broker services

India Infoline Securities Private

Providing stock broking, mutual funds, share trading and ipo's trading.

FDI Project Management & Services Pvt.Ltd

Approval for transfer of shares to NRI's and Foreign nationals

Shreenathji Shares & Securities

Providing all kinds of share trading services.

Cargomar Private Limited

Providing services related to customs broker.

A. C. E. Security & Allied Services

Providing various types of private security services.

R. R. Equity Brokers Private Limited

Offering services like equity consultants, share consultants and commodities consultants.

India Bulls


Consultant

Provides Services As a Investment Consultant.

Brilliant Securities Limited

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Provide services such as share brokers.

Integrated Stock Broking Services

Providing share broking services through membership in national stock exchange and share

depository service through membership in national securities depositories limited.

Kalia Pankaj & Associates

Providing stock brokers services.

CH: 2

Company

Profile33


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Reliance Enterprise

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 100,000 crore (US$ 22 billion), net assets in

excess of Rs 31,500 crore ( US$ 7 billion), and net worth

to the tune of Rs 27,500 crore (US$ 6 billion)

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Across different companies, the group has a customer base

of over 50 million, the largest in India, and a shareholder

base of over 8 million, among the largest in the world.

Through its products and services, the Reliance - ADA

Group touches the life of 1 in 10 Indians every single day.

It has a business presence that extends to over 4,500 towns

and 300,000 villages in India, and 5 continents across theworld.

The interests of the Group range from communications

(Reliance Communications) and financial services

(Reliance Capital Ltd), to generation, transmission and

distribution of power (Reliance Energy), infrastructure and

entertainment.

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Our Founder

Think big, think fast, think ahead. Ideasare no ones monopoly

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Dhirubhai H. Ambani

Our Chairmans vision

We live in a world where the young are reaching higher,

dreaming bigger and demanding more; a world that is challengingthe limits of hope and possibility.

Nowhere is this more strikingly visible than in India a countrythat wakes up every morning a little younger in age, but infinitelymore ambitious in spirit.

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Anil D. Ambani

Our Mission

. is to attract, nurture & retain a team of competitive, growthoriented talent who :-

consistently deliver share-holder returns of 20%+ year-on-year

Are responsive to Employee Needs & achieving anemployee satisfaction index of 90%+ and

are committed to making Reliance Capital among the top 3Best Employers to work for in India

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through Transparent & Robust HR processes

Introduction to Reliance Money

Reliance Money provides investors with the facility ofanytime-anywhere online trading in all major asset classes,namely:n

EquityEIPOIMutual FundsMCommoditiesCForex

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Network of kiosks have been set up across the country tofacilitate the above trading activities

Reliance Money provides entire commodity related servicessuch as broking distribution and warehouse receipt financing

Reliance Money is also into the distribution of financialproducts and Gold Coins

Within two years of operations Reliance Money has spreadacross 80 locations with more than one thousand employees

About Reliance Money

Currently 1000+ employees across 75 locations spread acrossthe country.

The Corporate Office at Wadala, Mumbai has approx 250

people belonging to these various functions .

Largest NBFC in India

Among the Top 3 private sector companies in financialservices sector

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Zero debt company and no NPAs

CH: 3

Research

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Methodology I. STATEMENT OF PROBLEM

The criteria and preferences considered the different stock brokers.

Research Objectives

There must an objective behind any research. Without objective there is no

meaning of research. :

The main objective of this research is to find the scope of the Demat & Trading

Accounts of Reliance Money Limited.

It will also measure the awareness of online trading in the market of Ahmedabad

city.

It aims at finding the consumers preference or criteria to select the share broking

house for their investment.

To know that how the variables such as company performances, services,

different types of charges, the company profile, etc. affect the consumers

choice of the Demat Account or trading account holdings

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SCOPE OF THE RESEARCH

Understanding various types of investment avenues available to mobilize the

surplus funds.

To study about various products and services offered by brokers to their clientsand the charges for the same.

To study about the various considerations, requirements (statutory or otherwise)

of the brokers.

To understand various services, facilities and offerings of brokers to their clints.

To understand various success criterias of brokers having high turnover and good

client base and analyze the key factors of their success.

DATA SOURCE

Primary Sources

The data was collected through making personal visit at the regional head office of

different brokers and asking them about various criterias taken into consideration. The

data was collected on the basis of the list of brokers given by our project guide and the

addresses of the brokers was collected thereof.

The data regarding various charges was available from the back office of the brokers and

certain statutory requirements such as documents for A/c opening etc being the same

everywhere were given less preference for the purpose.

UTILITY OF THE STUDY

To Reliance Securities Limited:

The company will be able to know the various preferences, considerations,

requirements as well as the offerings of various competitors in the market

It will help in framing strategy, which is competitive enough to cover all the

essential offerings of the competitors.

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The company will be able to know the key factors which are responsible for the

success of major market leaders in the broking industry.

Information about Stock Brokers

Reliance Money LimitedFeatures:-

Cost-effective: Pay a flat fee of just Rs. 500/- valid for 2 months or specifiedtransactional value.

Convenience: Go online, through your broker/agent, Call & Trade or Kiosk Security: Dynamic password - keeps the account extra secure Widest product range: Equity, Commodities, Derivatives, Offshore, Mutual

Funds, IPOs, Insurance

Other value-adds: Live news from Dow Jones, research, expert views, etcavailable free and in real time

Account opening fee & other charges:-

The initial account opening charges are Rs. 750/- which are lifetime accountopening charges. These charges have been waived off for corporate clients.

AMC charge of Rs. 50/- is applicable which is the lowest in the industry.

For additional Rs. 500/- a client can trade in volumes upto Rs. 5 lakh with timevalidity of maximum 1 year. There is a Rs. 500/- waiver for general clients(individuals).

Also certain prepaid coupon systems are provided which provide the customerdifferent trading volume limits along with different time validity limits as suitedto different clients as per their needs. These coupon systems have been mentionedbelow:-

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Brokerage Structure for Reliance Money

ONLINE OFFLINE

BUY SELL BUY SELL1 paisa 1 paisa 1 paisa 1 paisa

Rs. 15 (D.P. charge)* Rs. 15 (D.P. charge)#

Rs. 15 (assistancecharge)**

Rs. 15 (assistancecharge)*

he Rs. 15/- D.P. charges as shown above are flat per transaction per scrip per dayirrespective of the volume of shares traded.

The Rs. 15/- assistance charges are also flat irrespective of the volume of sharestraded out of which Rs. 10/- is the commission the franchisee receives for theservices offered by him and Rs. 5/- is what Reliance Money gets.

Additional Demat A/C details

Tie up with banks such as HDFC, IDBI, Axis Bank and ICICI Bank

Intraday margin 5 times same day square off

Delivery completely cash based

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Religare Enterprises Limited

The Company was incorporated as Vajreshwari Cosmetics Private Limited on

January 30, 1984.The name ReligareEnterprises Private Limited was kept on

January 10, 2006

A/c opening charges

o Trading: Nil

o Demat:Rs.500

Demat A/c types

o Bandhan :Rs.2100 one time and life time A.M.C. free

o Rally-pro: Normal A/c having opening charge of Rs.500 and A.M.C.

Rs.250

o Rally-lite:Broser based A/c available online

Brokerage:

o Intraday-5 paise

o Delivery based-50 paise

o F&O-10 paise

o Trading in Z group shares is not allowed.

o B.T.S.T. facility is available.

o A.M.C.:Rs.250

o D.P.: N.S.D.L. and C.D.S.L.

o Slip charges Rs.20

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Kotak Securities Limited

Trading A/c Opening charges-Rs.30

Brokerage:

On Sales-0.4

No charge on purchase

Slip charges-Rs.25

Online monitoring of demat A/c available

Sms facility available

Basically 2 departments:

Back office: Demat A/c, Accounting Operations and Risk Management

Front office: Sales and Dealers

Trading Exposure:7 times

I.T. and man-power are goodwill forthe fir

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Angel Broking Limited

Established: about 10 yrs. Back

Branches: about 80+

Trading in Equities, Commodities and Mutual Funds

Security deposit Rs.100000 based on riskas per no. of clients(i.e. as the no. of

clients increase the amount of deposit increases)

B.T.S.T. facility allowed

Brokerage:

Delivery: 50 paise/100rs. Buying &

Intraday: 5 paise/100rs. Selling

F&O: 10 paise/100rs.1 time charge

o B.T.S.T. facility is allowed

o Banking: H.D.F.C.,U.T.I., Citibank

o

D.P.-C.D.S.L.o Trading in Z group shares not allowed.

o Franchisee is treated as remissor upto the time of getting sub-brokership

registration

o Delivery Instruction Slip charges: Rs.10/slip

o Brokerage % sharing with franchisee is 50:50 on brokerage

uptoRs.100000 and than 65:35 or even higher based on brokerage earned

by franchisee.

Trading A/c opening charges Rs.100

Demat A/c opening charges A.M.C.:Rs.300 Total

Stamp duty: Rs.100 Rs.500 (+service tax)

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Auto pay-in: Rs.100

Inter Depository share transfer charges:

Rs.15 for value of securities up to Rs.100000

0.2% increase on securities having value higher than Rs.100000

Online back-office available and online trading available for which

sub-brokers are generally charged but clients are not charged.

Connectivity:

Normally -VSAT

For higher volume Lease line

For lower volume- Internet Broadband S.m.s. facility and information available

Trade Exposure: 5-10 times for Intraday and 3 times for delivery

based trading.

India Bulls Limited

A/c opening charge: Rs.900

Brokerage:

Delivery:25 paisa

Intraday:5 paisa

F&O: 3 paisa

Trading Exposure:

o Intraday: 20 times

o Delivery: 4 times

Why go for India bulls?

o Off-line trading A/c they make immediate call to clients when clients miss

call for putting trading limit

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o Whenever the share prices fluctuate in the market creating a favorable

situation for buyers for buying or selling a particular script, the clients are

immediately informed about the same in order to take advantage of the

favourable situation

o There is no organizational hierarchy in the firm and all the employees at

the branch are relationship managers who have to directly report to the

vice president of the co. The purpose behind this is to make direct

interface between clients and employees possible

India Infoline Limited

A/c opening charges: Rs.555

Initial trade margin for clients:Rs.5000

Banking: ICICI,UTI, HDFC, Corporation Bank

Brokerage:

Offline-A/c

o 0.1% Intraday

o 0.5% delivery

Online-A/c

o 0.05%

o 0.25%

Extra Charges Applicable for NBFC (Special funded A/c are 250/yr.)

U.S.P.:

o Special NBFC A/c which provide funding on the trade investment made

upto75% on the investments made by the client

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Online Banking facility available

Share khan

Share khan is a very actively expanding out retail distribution network to reach

out investors nationwide.

Why go for share khan ?

Online terminal and internet trading

Speed and flexibility

Technology and marketing

Research and equity sales support

Marketing and branding

Technology support and training

Infrastructure:

Minimum 500 sq.ft of office space

Connectivity: C.T.C.L & VSAT

Prosper infrastructure: La test P.C., U.P.S.

Least 2 certified and trained dealer

Least 5 sales excutives

Operations :

Billing- Centralized billing system where the end client will receive contract of

share khan

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Certification: for D.P., Cash and F&O and commodity operation at

your location you will have to produce the requisite NCFM

certification as per the guideline of the regulator

Brokerage:

o Initial-50:50 Offline and

Online

o At a gross brokerage of Rs.300000 per month-45:55 (Cash and

o At a gross brokerage of Rs.500000 per month-40:60 Derivative )

o Commodity-50:50

Trade margin:

o Cash Market:Rs.250000

o Derivative Market:Rs.100000

o Power Broker:Rs.50000

o Commodities Market:Rs.100000

Anagram

NSE and F&O same id is provided and can be operated through one computer

Separate Id and computer required for BSE

Connectivity: Broad band, Lease line

10,000*2 DD pay at Bombay on name of SEBI (5year*2000=sub-broker fees)

NSE and F&O (NCFM certificate required)

For Online network charges are Rs.10, 000 to be paid in two installments.

Documents required to start franchisee:

o Pan card

o Id and residential proof

o Office address proof

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o Bank reference letter

o CA reference letter or net worth certificate with CAs seal

Brokerage:

o 0.02 to 0.05 brokerage on trading

o 0.20 to 0.50 brokerage on delivery

Registration done from exchange and the registration no. received from it.

Personal attention in terms of training provided.

Back office provided by main firm and available on net.

No security deposit in the beginning if the firm is new, later main branch can

charge as per the revenue generated by the firm.

HDFC Securities Limited

Demat and trading 2 in 1 online

Charges 799(one time charges)

Demat and trading offline charges:499

A.M.C. for demat a/c Rs.500+service tax

Minimum balance in saving a/c Rs.5000

Documents: pan card, light bill, telephone bill, 2 photograph

The minimum value of order that will be accepted is Rs.1000

Brokerage(Cash

Segment)

Delivery Trades Square off Trades

When the market price of

the scrip is above Rs.10

0.5% of transaction value

or Rs.15 per order

whichever

is higher

0.15% of transaction

value or Rs15 per order

whichever is higher

Where the market price of

the scrip is below Rs.10

[email protected] per

share or Rs.15 per order

[email protected] per

share or Rs.15 per order

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or actual brokerage slab

i.e. 0.5% whichever is

higher

or actual brokerage slab

i.e. 0.15% whichever is

higher

A/c opening charge for N.R.I. is Rs.1200 and minimum brokerage per trade is

Rs.100

Share demat charges Rs.3 per certificate

D.P.:NSDL

ICICI Securities Ltd.

ICICI Web Trade Limited (IWTL) maintains www.icicidirect.com (hereinafter

referred to as the "Website") and owns, has the license to use or otherwise has the

right to use, free of any pending or threatened liens, all content, graphics, HTML and

CGI or other scripts displayed and used on the Website. Whereas IWTL is an

Affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank Limited.

This site gives the facility of 3-in-1 accounts. I.e. the 3-in-1 account integrates your

banking, broking and demat accounts. This enables you to trade in shares without

going through the hassles of tracking settlement cycles, writing cheques and Transfer

Instructions, chasing your broker for cheques or Transfer Instructions etc.

Brokerage:

o Intraday- 5paisa

o Delivery- 75paisa

Demat a/c + trading a/c- Rs.750

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Comparative Chart

PRODUCTS & SERVICES OFFERED BY DIFFERENT BROKERS

Product

s

Offered

Equity &Derivative

s

IPOs&

MFs

Commodity

Credit Cards& Gold Coins

Loans LI &GI

PMS &otherbenefitsEquity

Houses

India Infoline Yes Yes Yes No No Yes Yes

Religare Yes Yes Yes No No Yes Yes

Reliance Money Yes Yes Yes Yes Yes Yes Yes

Angel Broking Yes Yes Yes No No Yes Yes

ICICI Direct Yes Yes Yes Yes Yes Yes Yes

Kotak Secu. Yes Yes Yes Yes Yes Yes Yes

HDFC Secu. Yes Yes Yes Yes Yes Yes Yes

Anagram Yes Yes Yes No No Yes Yes

Sharekhan Yes Yes Yes No No Yes Yes

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Indiabulls Yes Yes Yes No Yes Yes Yes

Interpretation:

All the broking houses offer almost all types of main products and services. They areproviding Portfolio Management Services and other value-added benefits along withtheir basic offerings so that to cater more and more customers. Other than banks likeICICI, HDFC etc., Reliance Money is the only broker which provides credit cards andgold coins to the customers. It is also a distribution house where you can find products orservices of various companies. Its concept is simple, All under one roof. Now, it isgoing to offer commodities also as one of its products as there is enough potential in the

same.

In todays scenario, each and every major broking house is trying to include almost allthe products in its umbrella so that their customers have not to go at different places fortheir different financial needs.

BROKERAGE, AMC & OTHER CHARGES LEVIED BY DIFFERENTBROKERS

Charges Account Opening(Demat + trading)

(Rs.)

AMC (

Rs.)

BrokerageIntra-day Delivery

(Paisa) (Paisa)

Tie-up withMajor bank

Equity

Houses

India Infoline 555 Nil 04 40 Icici, HdfcAxis

Religare 500 Nil 03 30 Icici, Hdfc

Bob, Axis,Abn, Sbi

Reliance Money 750(500 for

corporate)

50 01 (online)& Rs. 15

(offline) per

trade

01 (online)

& Rs. 15

(offline) per

trade

Icici, HdfcAxis & Idb

Angel Broking 772 300 03 30 Icici, Hdfc,Axis

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ICICI Direct 750 500 05 75 Icici

Kotak Secu. 750 250 04 40 Kotak

HDFC Secu. 799 500 04 40 Hdfc

Anagram 550 200 05-10 50 Hdfc, Icici

Sharekhan Nil 275 10 50

Indiabulls 900 Nil 03 30 Icici, Hdfc,Axis

Interpretation

The charges for account opening and AMC are different at different broking houses butthose who are keeping these very low or nil, are collecting the same in form of brokerage.Except reliance, all are charging brokerage on volume, which varies from 03 to 10 paisa(intra-day) and 30 to 70 paisa (delivery). But, the brokerage structure is flexible at mostof the places. Reliance money is charging only 01 paisa per trade (online), regardless ofvolume which is very beneficial for big clients. It has introduced Voucher system forbrokerage on account of its aggressive launching. ICICI Direct is very costly in terms ofbrokerage yet it is at no. 1 position among online brokers. The reason behind this is itsdedicated customer service.

In todays scenario, all the broking houses are trying to associate with major banksfor therequirement of demat account. This benefits to both, the banks as well as the brokers. Thebanks are getting new products to offer and the brokers are getting hugecustomer baseofbanks. The popular banks in this category are ICICI, HDFC, Axis, Sbi etc. The brokinghouses like ICICI Direct, Kotak Secu. and HDFC Secu. are in association with singlebank only i.e. ICICI Bank, Kotak Bank and HDFC Bank respectively, because of same

group.

VALUE ADDED FACILITIES PROVIDED BY DIFFERENT

BROKERS

Extra

facilities

Benefits or

discountson high-volume

BTST or

ATST

Credit

facility

Off

markettrading

Loans

for tradingin IPOsEquityHouses

India Infoline Yes Not rightnow

Yes Yes Yes

Religare Yes Yes Yes Yes Yes

Reliance Money Yes Yes No Yes Yes

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Angel Broking Yes Yes Yes Yes No

ICICI Direct Yes Yes No Yes No

Kotak Secu. Yes Yes No Yes Yes

HDFC Secu. Yes Yes Yes Yes Yes

Anagram Yes Yes Yes No YesSharekhan Yes Yes Yes Yes Yes

Indiabulls Yes Yes Yes Yes Yes

Interpretation

Any benefits or discounts in case of high volume traders

In todays scenario, it is very necessary to provide additional benefits or special discountsto high volume traders or HNIs because it is very important to retain the same as they arethe source of big revenues.

BTST/ ATST facility

BTST or ATST stands for Buy Today, Sell Tomorrow or Acquire Today, Sell Tomorrow.This facility has started few months back as an additional product to attract customers. Inthis, one can buy shares during the trading hours and then sell the same next morningwhen market gets open.

Delivery cash based or credit facility provided

Most of the brokers provide the facility of credit to its customers for few days and lateron interest but this generates an additional head-ache of collecting payment. Now, thetrend has somewhat changed as players like ICICI and Reliance are providing completely

cash-based trading. Sebi is also in favour of the same as there is always a risk ofdefaulters in case of credit-based trading.

Provision of off market trading

Almost all the brokers are providing this type of facility for the people who wants to fillmore than one IPO application, legally. So again, this is an additional benefit given toattract the customers.

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Provision of loans for IPO trading

This is again a service for customers who want to invest in IPOs but are not having theenough capital. So, the brokers are providing the facility of loan for the same. But very

few are considering it as a risk in this Bearish scenario.

Limitations

As we all know, security market is highly volatile. We may predict about it more

accurate but due to uncertain driving forces the predictions may not work.

The market risks and uncertainties are always there.

Long term future of any market has impact of govt. policies and decisions.

Indian economy is highly dependent on monsoon, so despite of all the

precautions, projected growth rate cant be maintained.

FINDINGS AND SUGGESTIONS

From the one and half month experience of my research project with RELIANCE

MONEY LIMITED. I have come to know a lot of things and it has enhanced my

knowledge to a great extent. But from my point of view I found some things which are

really needed to be taken into consideration. Some of recommendations and suggestions

given by me are purely based on my study at the Reliance Money Limited. It doesnt

have any kind of bias on my side. They are given as under:

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The things I would like to comment on especially are the very low advertising and

marketing initiatives by Reliance Money Limited.

The some customers who are current working with Reliance Money Limited now and

then complain about the services provided by the branch.

The things such as the company not give you credit for purchasing a share

therefore some of the customer not happy with this services.

The other thing that if and only if you deposit some amount then and then only you

will be allowed to trade. So the customers who play very high jacks on intraday basis

sometimes would not recommend this.

And the thing that it is compulsory original pan card copy to open a Demat Account

and the Trading account with Reliance Money Limited. Without you can not open

any one of them.

CONCLUSION

The research conducted by me is summarized as under:

From the research, it could be concluded that Reliance Money Limited in all ways as

compared with the other stock broking houses has a good scope in the Ahmedabad city.

But since it has just finished 1 years of inception in Ahmedabad, it has gained much

popularity in comparison of Angel, India bulls, Indiainfoline, Religare etc.

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Reliance Money Limited in always is good, just that it needs to provide more and better

services and fast services to the customers.

In Ahmedabad city the name Reliance Money Limited needs to be emphasized on, while

marketing & selling the product. The market is 100% fully aware that what Reliance

Money Limited.

It could come up with products which cater to all segments of the society after a little cost

cutting, than fixing up a standard service for all its customers, whose needs vary

diversely.

BIBLIOGRAPHY

BOOKS AND MAGAZINES:

Business research Method cooper & schindler Tata McGraw Hill

Reliance Money broachers and registration kit

Financial Management P. Chandra (2001) Tata McGraw Hill

Websites:

i di
http://www.nseindia.com/http://www.nseindia.com/

A Comparative Study Study of Internal and Front Charges Levied by Karvey. Geogit and Angle Brokeing

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