old but good

8/10/2019 old but good

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DECLARATION

It gives me immense pleasure that I got an opportunity to work with Religare Securities Ltd.

and also to undertake such a wonderful project. The professionalism and the great work

environment has helped me in shape-up my personality and enhance my knowledge. It was an

educating and enriching experience for me.

Now that I have completed my project work, thus, it is but natural to thank all those who

made this project an outstanding experience.

First and foremost, I extend my sincere gratitude to my project guide Mr.Baljeet Singh (Sr

RM) RSL, Noidafor his invaluable suggestions and the time he has devoted for successful

execution of this project work. I thank him for giving me insights, required inputs and proper

direction throughout the project.

PLACE: NEW DELHI (RESEARCH STUDENT )

DATE : ANUPAM JAIN


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TABLE OF CONTENT

EXECUTIVE SUMMARY 7

CHAPTER-I

INTRODUCTION OF PROJECT

2.1 INTRODUCTION 9

2.2 PROBLEM DEFINETION 10

2.3 STATEMENT OF PROBLEM 10

2.4 OBJECTIVE 11

2.5 WHY INVESTOR CHOOSE RELIGARE 11

2.6 INVESTOR EXPECTATAIONS 12

CHAPTER-II

PROFILE OF THE ORGANIZATION

3.1 INTRODUCTION 14

3.2 FINANCIAL SERVICE INDUSTRY 15

3.3 INDIAN FINANCIAL SECTOR 16

3.4 RECENT ADVANCEMENT IN THE INDUSTRY 18

3.5 RANBAXY GROUP 19

3.6 RELIGARE: THE COMPANY 20

3.7 COMPANY STRUCTURE 24

3.8 COMPETITORS OF RELIGARE 25

3.9 THE RELIGARE AGE 27

3.10 THE REACH OF RELIGARE 28

3.11 DEVISION OF RELIGARE 28


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CHAPTER-III

RESEARCH DESIGN AND METHODOLOGY

4.1 INDRODUCTION TO RESEARCH METHODOLOGY 33

4.2 OBJECTIVE OF RESEARCH 33

4.3 RESEARCH DESIGN 34

4.4 SOURCES OF DATA COLLECTION 35

4.5 LIMITATION OF STUDY 35

CHAPTER-IV

DATA REPRESENTATION, ANALYSIS & INTERPRETATION

5.1 DEMATERIALISATION 36

5.2 OPENING OF DEMAT ACCOUNT 37

5.3 COMPARISON TABLE OF BROKERAGE CHARGES IN INDIA 46

5.4 BROKERS BROKERAGE RATE REMARK 50

CHAPTER-V

RECOMMENDATION AND CONCLUSION 58

CHAPTER-VI

BIBLIOGRAPHY 62

CHAPTER-VII

QUESTIONNAIRE 64


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EXECUTIVESUMMARY


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CHAPTERI

INTRODUCTION


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PROJECT

INTRODUCTION

The stock broking industry is a service-oriented industry where brokers act as agents for

investors when a security is bought or sold and are compensated with a commission.

Investors would not hesitate to switch to alternative brokerage houses if they do not obtain

satisfaction. Providing quality service and hence customer satisfaction should thus be

recognised as a key strategy and a crucial element of long-run success and profitability for

stock broking businesses.

Little has been done towards understanding the expectations investors hold from their

stockbrokers. Since expectations serve as benchmark to gauge the service level of brokers,

the delivery of services that exceed customer expectations is one strategy that can give firms a

competitive advantage. Therefore, it would seem beneficial for stockbrokerage firms, in a

dynamic economic environment like India, to provide service at a good scale of quality.

In addition, stockbrokers have much to gain in understanding investors expectations of them,

as this would help the stockbrokers to serve their customers better and foster long-lasting

relationship with their customers. This study therefore aims to provide a platform for

understanding whta the customer needs and what is being provided to bridge the gap between

customer expectation and the actual service rendered. This information would be useful for

those who would like to control and improve the performance of their service.

The project would focus mainly on RELIGARE understanding of the requirements of the

customer and its endeavour to provide what the customer expects and hence showing that it is

the market leader in the stock broking industry.


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OBJECTIVE

To understand and analyse the expectations of customers of RELIGARE in today market

scenario and RELIGAREs efforts to provide the best services at the most competitive prices

and provide recommendations of any deviation from that purpose.

Stating the objective of the study.

Mapping out a questionnaire to understand the expectations of customers.

Identifying problems being faced by customers

Analysing RELIGAREs product in meeting these expectations.

Finding deviations if any.

Why investors choose Religare??

It is a Ranbaxy promoter group company.

Diverse portfolio and a lot of products under one roof.

Has one of the best brokerage plans.

Attractive brand.

Relationship managers attached to customers.

Equity research team (one of the best in the market).

Controlled and low cost service structure.

Large volume processing structure.

Expertise in coordinating multi-location responses.


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INVESTORS EXPECTATIONS

Providing basic knowledge to investors so as to help them in understanding the stock market

and making proper decisions in stocks

Providing an averagely priced product so as to appeal to the investors and have a penetration

effect in the market.

Timely input (tips, entry and exist) to be provided to prospective clients so that they can

maximize their wealth by making smart decisions.

Updated info about client accounts on amounts outstanding, payment, withdrawals,

shortages etc if any.

Ancillary services like providing payout facilities, direct transfers, timely payments and

receipts, confirmations about order receiptance and delivery of stocks, cheques,

dematerialised shares etc.

Infrastructure facilities like proper sitting arrangements, water and other refreshments, clean

facility and a clean working environment.

Cordial relation with clients should be maintained so as to promote goodwill and business of

the broker.

Proper availability of RMs to attend to clients requests so as to minimize delays in order

reacceptance and minimizing customer dissatisfaction.


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CHAPTERII

PROFILE OF THE

ORGANIZATION


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INTRODUCTION

The stock broking industry is a service-oriented industry where brokers act as agents for

investors when a security is bought or sold and are compensated with a commission.

Investors would not hesitate to switch to alternative brokerage houses if they do not obtain

satisfaction. Providing quality service and hence customer satisfaction should thus be

recognised as a key strategy and a crucial element of long-run success and profitability for

stock broking businesses.

Little has been done towards understanding the expectations investors hold from their

stockbrokers. Since expectations serve as benchmark to gauge the service level of brokers,

the delivery of services that exceed customer expectations is one strategy that can give firms a

competitive advantage. Therefore, it would seem beneficial for stockbrokerage firms, in a

dynamic economic environment like India, to provide service at a good scale of quality.

In addition, stockbrokers have much to gain in understanding investors expectations of them,

as this would help the stockbrokers to serve their customers better and foster long-lasting

relationship with their customers. This study therefore aims to provide a platform for

understanding whta the customer needs and what is being provided to bridge the gap between

customer expectation and the actual service rendered. This information would be useful for

those who would like to control and improve the performance of their service.

The project would focus mainly on RELIGARE understanding of the requirements of the

customer and its endeavour to provide what the customer expects and hence showing that it is

the market leader in the stock broking industry.


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Financial Services Industry

The financial services industry broadly known as the money markethas been in existence

since the late 1990s.The finance industry encompasses a broad range of organizations that

deal with the management of money. Among these are:-

Banks

Credit financers

Insurance companies

Consumer finance companies

Stock brokers

Investment funds

Government sponsored enterprises

Other financial services

Intermediation or advisory services - These services involve stock brokers (private client

services) and discount brokers. Stock brokers assist investors in buying or selling shares.

Primarily internet-based companies are often referred to as discount brokerage. Full service

and private client firms primarily assist execute trades and execute trades for clients with

large amounts of capital to invest, such as large companies, wealthy individuals, and

investment management funds.


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Venture capital - Venture capital is a type of private equity capital typically provided by

professional, outside investors to new, high-potential-growth companies in the interest of

taking the company to an IPO or trade sale of the business.

Conglomerates - A financial services conglomerate is a financial services firm that is active

in more than one sector of the financial services market e.g. life insurance, general insurance,

health insurance, asset management. A key rationale for the existence of such businesses is

the existence of diversification benefits that are present when different types of businesses are

aggregated i.e. bad things don't always happen at the same time.

THE 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 the recent years and the management and

brokerage have been liberalized to allow private sector involvement, which has contributed to

the development and modernization of the financial services sector. This is particularly

evident in the non-banking financial services sector, such as brokerage, resident 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 the total GDP.


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Derivatives Trading, Demutualization and Depositories Act

to assist market participants in managing risks better than through hedging and arbitrage, the

Securities Contracts(Regulation) Act,1956 was amended to lift the ban on options in securities

and was further amended to include derivatives so that the entire regulatory could apply to

derivative trading also. Derivative trading commenced in June 2000 in NSE and BSE.

The government proposed in March 2001 to corporatize the stock exchanges and thereby

segregate ownership, management and trading membership. A tax incentive to facilitate

corporatization and demutualization process. The NSE has adopted a demutualised

governance structure where ownership, management and trading are separates to help reduce

conflicts of interest.

The settlement system on stock exchanges gave rise to settlement risk due to lapse of time

before trades were settled. A significant proportion of transactions ended up as bad deliveries

due to non-compliance with paperwork. To obviate this problem, the Depositories Act 1996

was passed. All actively traded scripts are now held, traded and settled in uncertificated form.


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Recent advancements in the industry

With market sentiment turning positive due to the formation of a stable newly elected

government, the ripple effect is likely to felt across all the financial services in India.

Financial services and real estate sector rose by 9.5 per cent in the first quarter of 2013-14.

Slashing interest rates, lowering factory levies and more than doubling the limit on foreign

investment in corporate bonds has led to rapid growth in the financial sector.

JUN-JULY 2014 saw increased inflow in to equity with investors steadily turning positive

on equity with net investment of mutual funds in debt almost getting tripled.

Indias market capitalization (m-cap) has touched US$ 1.04 trillion making it the ninth

largest in the world.

The Indian stock market has currently responded to the optimism of reforms by the new

stable government and its continuity in policies.

Falling commodity price will ease input cost of the industries. Government policies to boost

the economy.

Inflation at record lows with lower crude price. As interest rate in developed economy is

record low, India could attract investment.

Reducing interest rates provide fuel to the recession economy making the financial system

more secure.


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RANBAXY GROUP

RELIGARE SECURITIES LIMITED

Company history:-

Religare Securities limited

Incorporated in 1984, promoted by Ranbaxy group, Religare Enterprises (REL) is the

holding company of 11 business subsidiaries.

Each of its subsidiaries is engaged in a wide spectrum of financial products and services

targeted at retail, high-net worth individuals, corporate and institutional clients.

The services offered by the group include :

Share broking,

Financing loans against shares,

IPO financing,

Distribution of mutual funds,

Insurance broking,

Commodity broking,

Wealth management advisory business,

Private equity,

Merchant banking and

Trading in arts and artifacts among others.

More than 90% of revenue drivers for the company are its retail equity broking arm

Religare Securities and Religare Finvest, which finances loans against shares.


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NAME OF THE ORGANIZATION:

RELIGARE SECURITIES LTD.

Registered Office Address:-

NOIDA: 19, NEHRU PLACE

NEW DELHI -110019

India.

Phone:+91-11-66562200

Corporate Office Address: -

Noida: A-3, 4, 5, Sector-125

Uttar Pradesh - 201 301,

India.

Phone:+91-0120-339-1000


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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 representsTrust. The ability to place ones own

faith in another. To have a relationship as partners in a team. To accomplish a

given goal with the balance that brings satisfaction to all, not in the binding,

but in the bond that is built.

The third leaf of the clover represents Care. The secret ingredient that is the

cement in every relationship. The truth of feeling that underlines sincerity and

the triumph of diligence in every aspect. From it springs true warmth of service

and the ability to adapt to evolving environments with consideration to all.

The fourth and final leaf of the clover represents Good Fortune. Signifying that

rare ability to meld opportunity and planning with circumstance to generate

those often looked for remunerative moments of success.


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COMPANY STRUCTURE:

Our organization is led by individual who are professional and leaders in every sense of the world.

Experts in their respective domain, esteem members of its Board of Directors are:

Name Designation

Mr. Sunil Godhwani CEO & Managing Director

Mr. Ravi Mehrota Director

Mr. Monish K Dutt Non Executive Director

Mr Virendra Kumar Madan Non Executive Director

Mr. ArunRamanathan Non Executive Director

Mr. Harpal Singh Non Executive Director

Mr. A.C. Mahajan Independent Director

Mr. R.K. Shetty Independent Director

Ms. SangeetaTalwar Independent Director

Mr. Deepak Ramchand Sabnani Independent Director

Mr. Padam bahl Independent Director
http://www.religare.in/management.asp#sunilhttp://www.religare.in/management.asp#harpalhttp://www.religare.in/management.asp#harpalhttp://www.religare.in/management.asp#malvinderhttp://www.religare.in/management.asp#malvinderhttp://www.religare.in/management.asp#malvinderhttp://www.religare.in/management.asp#malvinderhttp://www.religare.in/management.asp#malvinderhttp://www.religare.in/management.asp#harpalhttp://www.religare.in/management.asp#sunil


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COMPETITORS OF RELIGARE

ICICI DIRECT

HDFC SECURITIES

INDIA BULLS

KOTAK SECURITIES

RELIANCE MONEY

SHARE KHAN SECURITIES

MOTILAL OSWAL

ANGEL BROKING

The Religare Edge:

Position is not squared off without margin calls.

Cash transfer facility against sale & purchase of shares.

Judgmental call tips given even in the processing time.

Facility to place after market orders.

Efficient and prompt customer service.

Efficient research and analytical team.

SMS alert and email notification.

Attractive margin funding facility.

Excellent market tips.

No inactivity fee.

IPO investments.

4 times exposure on delivery and intraday.

We offer mapping with other demat absolutely free of cost.

Brokerage is negotiable.


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REACH OF RELIGARE

Religare Enterprises Ltd is a Ranbaxy promoter group company

6 Regional offices

25 Zonal Offices

Presence through more than 1200 locations-Pan India

Present across more than 375 Cities & Towns

Total group employees 6,500 plus

Client Interfaces through the Retail, Wealth and Institutional spectrums

Among the largest Retail brokerage branch network, going beyond Tier-I and Tier-II cities in

India

Overseas presence with a representative office in London, with aggressive plans of

straddling other parts of the globe in this financial year

DIVISION OF RELIGARE

Religare Securities Limited (RSL)

Registered with SEBI as an approved stockbroker with membership of NSE and BSE

Registered for portfolio management

Registered as Depository Participant

Registered as merchant banker


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Religare Finvest Limited(RFL)

Registered with RBI as a non-banking finance company and presently engaged in providing

credit, distribution of mutual funds and IPO financing.

Registered with SEBI as a Depository Participant of Central Depository Services Limited.

Religare Commodities Limited

Registered with Forwarding Market Commission as a commodity broker.

Member of National Commodities and derivative Exchange Limited, Multi Commodity

Exchange Of India Limited and National Multi Commodity Exchange Of India Limited.

Religare Insurance Broking Services Limited

Registered with Insurance Regulatory Development Authority as a composite broker which

enables us to distribute products and services of life insurance companies, non life insurance

companies and re-insurance businesses.

Religare Venture Capital Private Limited

RVCL was recently incorporated to commence the business of private equity and investment

manager business and is yet to commence business.


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Religare Wealth Management ServicesLtd

RWMSL is newly incorporated company in which the wealth management advisory business

is conducted with a joint venture with Macquarie providing wealth management services to

high net worth clients in India.

Religare Finance Ltd

RFINL was recently incorporated to start the business of personal loans and other consumer

lending businesses.

Religare Capital Market Ltd

RCML was recently incorporated to do the merchant banking business which is presently

under RSL, with the view to segregate the merchant banking operations from broking

business.


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EQUITY BROKING

Over 200,000 Retail Equity clients, with growth rates of over 200%

Market share as on 31stMarch, 07, was 2.70%

Pan India footprint, one of the largest in the category

International presence

Strong equity research credentials

Team of 10 research analysts

Over 90 man years of research experience for equity retail


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COMMODITY TRADING

Started operations in 2004

Member of MCX, NCDEX and NMCE

Presence through more than 460 locations all over India, in addition to over 40 Mandi

(Rural) locations, one of the largest in the category

20,000 plus clients, with growth rates of over 400%

As of 31stMarch 2007, market share, ranged between 3% - 4%

Over 40% growth in turnover YOY

Strong, credible research and analytics with a dedicated team of 12 professionals

ONLINE INVESTMENT

Official Launch of E-trading in August 2006

Aggressive growth over the last few months

Market share as of 31stMarch, 07 was around 4.76%*

Recently launched a revamped, unique 360 degree customer centric online trading portal

www.religareonline.com

Launch of Trade Rewards unique reward points system, a first in the category

Host of other revolutionary features- 0% brokerage, Interest on cash margin etc.
http://www.religareonline.com/http://www.religareonline.com/http://www.religareonline.com/


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PERSONAL CREDIT

Personal Loans - Key Facts

Official Launch of Personal Loans in August 2006

Total number clients as on 31stMarch 2007, were more than 840.

Loans against Shares - Key Facts

Current Book Size Rs 650 cr.

Presence through all Religare locations in India.

Total number of clients as of 31st March 2007 was over 1600.

PERSONAL FINANCIAL SERVICES

This group caters to the financial needs of individuals by advising them on various financial

plans

Financial planning for retail investment is not widespread in India

PFS was started to target the rapidly expanding middle net worth individuals (MNIs) in

India

Rapid rollout of offerings, such as mutual funds, life and general insurance, fixed income,

small savings instruments, capital bonds and equity IPOs

Expert group of Religares PFS advisors provide high quality customized solutions

Dedicated Team of more than 200 advisors.


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CHAPTER-I I I

RESEARCH DESIGN AND METHODOLOGY


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INTRODUCTION TO RESEARCH METHODOLOGY:

Research Methodology comprises defining and redefining the problem, formulating hypothesis or

suggesting solution, collecting, organizing and evaluating the data, making deduction and reaching to

conclusions.

Research Methodology is a way to solve research in study and solving research problems along with

logic behind them. Thus while talking about research methodologies we are not only talking of

research methods but also consider the logic behind the methods.

During my project, I collected data through various sources of primary & secondary data.

OBJECTIVES OF RESEARCH :

To understand and analyse the expectations of customers of RELIGARE in today market

scenario and RELIGAREs efforts to provide the best services at the most competitive prices

and provide recommendations of any deviation from that purpose.

Stating the objective of the study.

Mapping out a questionnaire to understand the expectations of customers.

Identifying problems being faced by customers

Analysing RELIGAREs product in meeting these expectations.

Finding deviations if any.

Providing recommendations and steps to be taken to counters these problems.


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SOURCES OF DATA COLLECTION:

In this research, I have used two types of data.

Primary Data.

Secondary Data.

Sources of Primary Data includes:-

Telephonic Interview

Personal Interview during cold calling

Company prospectus & literature

Questionnaire

Sources of Secondary Data includes:-

Books related to Financial Management

Internet

Newspaper

Company Database

References given by Relationship Manager

LIMITATIONS OF STUDY:

The study was conducted in NOIDA only, which restricted the scope of the study.

The data provided by the investor and the agents cant be assumed as 100% correct.

Sample size was just 890 which might give different picture than the reality.

Sampling was judgment based & simple random so chance of occurrence of error is more.


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CHAPTER -IV

DATA REPRESENTATION,

ANALYSIS &

INTERPRETATION


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DEMATERIALISATION

Dematerialization is the process of converting physical shares (share certificates) into an electronic

form. Shares once converted into dematerialised form are held in a Demat account.

An investor intending to dematerialise its securities needs to have an account with a DP. The

client has to deface and surrender the certificates registered in its name to the DP. After intimating

NSDL electronically, the DP sends the securities to the concerned Issuer. NSDL in turn informs the

Issuer electronically, using NSDL Depository system, about the request for dematerialisation. If the

Issuer finds the certificates in order, it registers NSDL as the holder of the securities (the investor will

be the beneficial owner) and communicates to NSDL the confirmation of request electronically. On

receiving such confirmation, NSDL credits the securities in the depository account of the Investor with

the DP.


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OPENING A DEMAT ACCOUNT

Getting started

Choose a DP

Fill up an account opening form provided by DP, and sign an agreement with DP in a standard

format prescribed by the depository.

DP provides the investor with a copy of the agreement and schedule of charges for his future

reference.

DP opens the account and provides the investor with a unique account number, also known as

Beneficiary Owner Identification Number (BO ID).

Documents to be attached

Passport size photographs

Proof of residence (POR) - Any one of Photo Ration Card with DOB / Photo Driving License

with DOB / Passport copy / Electricity bill / Telephone bill

Proof of identity (POI) - Any one of Passport copy / Photo Driving License with DOB /

Voters ID Card / PAN Card / Photo Ration Card with DOB

PAN card


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OPENING MULTIPLE ACCOUNTS

An investor is allowed to open more than one account with existing DP or with different DPs.

MINIMUM BALANCE OF SECURITIES REQUIRED IN DEMAT ACCOUNT

There is no stipulated minimum balance of securities to be kept in a demat account.

MAXIMUM NUMBER OF HOLDERS IN A DEMAT ACCOUNT

A maximum of three persons are allowed to open a joint demat account in their

names.

ACCOUNT OPENING AND OWNERSHIP PATTERN OF SECURITIES

One must make sure to open a demat account in the same ownership pattern in which the physical

securities are held. For example: If you have two share certificates, one in your individual name (say

'X') and the other held jointly with some other individual (say 'XY'), then in such a case you will have

to open two different accounts in respective ownership patterns (one in your name i.e. 'X' and the other

account in the name of 'XY').


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HOLDING A JOINT ACCOUNT ON "EITHER OR SURVIVOR" BASIS LIKE A BANK

ACCOUNT

No investor can open a demat account on "E or S" basis like a bank account.

ALLOWING SOMEBODY ELSE TO OPERATE YOUR DEMAT ACCOUNT

It is possible for an account holder (Beneficiary Owner) to authorize some other person to operate the

demat account on his behalf by executing a power of attorney. After submitting the power of attorney

to the DP, that person can operate the account on behalf of the beneficiary owner (BO)..

ADDITION/DELETION OF THE NAMES OF THE ACCOUNT HOLDERS AFTER

OPENING THE ACCOUNT

It is not possible to make changes in the names of the account holders of a BO account. A new account

has to be opened in a desired holding/ownership pattern

CLOSING A DEMAT ACCOUNT AND TRANSFER OF SECURITIES TO ANOTHER

ACCOUNT WITH SAME OR DIFFERENT DP

An investor, if he wants, can also close his demat account with one DP and transfer all the securities to

another account with existing or a different DP. As per a SEBI circular issued on November 09, 2005,

there are no charges for account closure or transfer of securities by an investor from one DP to

another.


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FREEZING/LOCKING A DEMAT ACCOUNT

The account holder can freeze his demat account for a desired time period. A frozen account prevents

securities to be transferred out of (Debit) and transferred into (Credit) the account.

DEMATERIALISED SHARES DO NOT HAVE ANY DISTINCTIVE NUMBER

Dematerialised securities are fungible assets. Therefore they are interchangeable and identical.

REMATERIALISATION

The process of getting the securities in an electronic form, converted back into the physical form is

known as Dematerialization. An investor can rematerialize his shares by filling in a Remat Request

Form (RRF).


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Odd-lot shares can also be traded (can be even 1 share).

Nomination facility available.

Any change in address or bank account details can be electronically intimated to all companies in

which investor holds any securities, without having to inform each of them separately.

Securities are transferred by the DP itself, so no need to correspond with the companies.

Shares arising out of bonus, split, consolidation, merger etc. are automatically credited into the

Demat account of the investor.

Shares allotted in public issues are directly credited into Demat account of the applicants in quick

time.


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BANK ACCOUNT VS DEMAT ACCOUNT

S.

No.

Basis Of

Differentiation

Bank Account Demat Account

1. Form of

Holdings/Deposi

ts

Funds Securities

2. Used for Safekeeping of money Safekeeping of shares

3. Facilitates Transfer of money

(without actually

handling money)

Transfer of shares (without actually

handling shares)

4. Where to open A bank of choice A DP of choice (can be a bank)

5. Requirement of

PAN Number

Not Mandatory Mandatory (effective from April 01,

2006)

6. Interest accrual

on holdings

Interest income is subject

to the applicable rate of

interest

No interest accruals on securities held

in Demat account

7. Minimum

balance

requirement

AQB* maintenance is

specified for certain bank

accounts

No such requirement

8. Either or

Survivor facility

Available Not available

*AQB - Average Quarterly Balance


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SIMILARITES BETWEEN BANK'S A/c AND DEMAT A/c

S. No. BASIS OF SIMILARITY PARTICULARS

1. Security and

Convenience

Both are very safe and convenient means of holding

deposits/securities

2. Number of accounts No legal barrier on the number of bank or Demat accounts

that can be opened

3. Transfer of deposits

(funds or securities)

Funds/securities are transferred only at the instruction of

the account holder

4. Physical transfer of

money/securities

Physical transfer of money/securities is not involved

5. Nomination Facility Available


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Comparison Table of Brokerage Charges in India

Here you will find a table comparing intraday brokerage charges and delivery brokerage charges

charged by different online brokers in India: Sharekhan, ICICIdirect, Motilal Oswal, Religare,

SBICAP Securities, Angel Broking, 5paisa, Indiabulls, UTI Securities, HDFC Securities,

Indiainfoline, Reliance Money. I constantly try to update this table and try to keep it up to date, so if

you have any more information, please leave a comment. It is also important that you read the remarks

below the table to get a complete picture.

Online BrokerBrokerage for

Delivery

Brokerage for Intraday

tradingMMC*

SBICAP Securities

brokerage charges0.50% 0.10% NIL

Sharekhan

brokerage charges0.03% - 0.50% 0.03% - 0.10% NIL

Motilal Oswal

brokerage charges 0.30% - 0.50% 0.03% - 0.15%

5 paisa

brokerage charges0.25% - 0.85% 0.07%

Angel Broking

brokerage charges0.50% 0.02% - 0.03%
http://niftyprediction.blogspot.com/2008/08/comparison-table-of-brokerage-charges.htmlhttp://niftyprediction.blogspot.com/2008/08/comparison-table-of-brokerage-charges.htmlhttp://www.sbicapsec.com/http://www.sbicapsec.com/http://www.sharekhan.com/http://www.sharekhan.com/http://www.motilaloswal.com/http://www.motilaloswal.com/http://www.5paisa.com/http://www.5paisa.com/http://www.angelbroking.com/http://www.angelbroking.com/http://www.angelbroking.com/http://www.5paisa.com/http://www.motilaloswal.com/http://www.sharekhan.com/http://www.sbicapsec.com/http://niftyprediction.blogspot.com/2008/08/comparison-table-of-brokerage-charges.html


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ICICI direct

brokerage charges0.75% 0.15%

Indiabulls

brokerage charges0.25% - 0.50% 0.05% - 0.10%

HDFC Securities


UTI Securities

brokerage charges

0.80% 0.15%

Religare

brokerage charges0.20% - 0.30% 0.02% - 0.03%

Reliance Money

brokerage charges0.01% 0.01% card system

Geogit


Indiainfoline

brokerage charges0.50% 0.10% -

MMC=Minimum monthly commitment.
http://www.icicidirect.com/http://www.icicidirect.com/http://indiabulls.com/http://indiabulls.com/http://www.hdfcsec.com/http://www.hdfcsec.com/http://www.utisel.com/http://www.utisel.com/http://www.religare.in/http://www.religare.in/http://www.reliancemoney.com/http://www.reliancemoney.com/http://www.geojit.com/http://www.geojit.com/http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.geojit.com/http://www.reliancemoney.com/http://www.religare.in/http://www.utisel.com/http://www.hdfcsec.com/http://indiabulls.com/http://www.icicidirect.com/


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Brokerage is usually negotiable: Several of you trying to choose an online broker and open an online

trading account must have been frustrated trying to search for the exact brokerage charges charged by

various online brokers. But the fact is the brokerage charged by the same broker varies and in several

cases is negotiable. For example if you go and tell a brokerage house that you are going to deposit 2

lakh rupees and try to convince them you are going to trade heavily, they might consider reducing

your brokerage. That is why in the above table you will find only a range for the brokerage charges in

some cases. But that should be enough to get an idea.

Effective brokerage with taxes is more:In addition to the above brokerage charges you will have to

pay STT(Securities Transaction Tax) at the rate or 0.02% of the total transaction amount. You will

also be charged 12.5% Service Taxon the brokerage amount (and not on the transaction amount). For

example, if your brokerage is 0.50% for delivery and you do a delivery transaction of Rs.100/- then

the total brokerage you pay is

0.50 (brokerage) + 0.02 (stt) + 0.063 (service tax) = 0.58 .

Thus your effective brokerage (including all taxes) will be 0.58%. Similarly for brokerage on intraday

transactions.

One may also like to compare brokerages charged by the online brokers mentioned above for trading

in futures and options. I have traded options on SBICAP securities and have been charged Rs.100/-

flat brokerage fee for every options trade. I will probably find out and also add a comparison table for

brokerage charges for trading derivatives (futures and options) later, if i see enough people google

searching for the same. For futures, some online brokers charge different brokerage for different legs

of the trade, i.e. different for buy and sell trade.

Except SBICAP Securities, I do not have any other trading account. So my information is gathered

from indirect sources. In case there are any inacurracies please let me know by posting a comment.


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Broker Brokerage Rate Remarks

Delivery Trades ,Intra-Day

HDFCSecurities

0.5% Fixed brokerage rates regardless of the turnover

Brokerage charged on both legs

0.05%

Fixed brokerage rates regardless of the turnover

Brokerage charged on both legs

Minimum brokerage of Rs.25 per trade subject to the SEBI limit of 2.5% of total traded value

Occasionally introduces brokerage rebate schemes but turnover slabs are very high for being

eligible for the rebate and as such the schemes are generally not beneficial to ordinary

investors


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I CICI Direct

0.25% to 0.75%

Variable brokerage in seven slabs of turnover in the steps of 0.05 each

Charged on both the legs

0.25% to 0.75%

Variable brokerage in seven slabs of turnover

Charged only on the first leg and hence effective rate of 0.375%

Margin trades @0.05%

For most of the retail investors, higher rates will be applicable, as the turnover for lower rates

may not be achieved by them


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I CICI Direct

0.03% to 0.05%

Variable brokerage in four slabs in the steps of 0.005 each


In case of intra-day square off, second leg is charged at Rs.15 per lot

Rs.65 to Rs.95 per lot

Variable brokerage in five slabs of premium turnover in the steps of Rs.5 each


In case of intra-day square off, second leg is charged at Rs.15 per lot

For most of the retail investors, higher rates will be applicable, as the applicable turnover for

lower rates may not be achieved by them


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Kotak Securi ties

0.023%, 0.027%, 0.036%, 0.045%, 0.07% for intra-day square off

0.032%, 0.046%, 0.046%, 0.073%, 0.09% for carry forward positions

Variable brokerage in five slabs of turnover


1.15%, 1.35%, 1.8%, 2.25%, 2.5% for intra-day square off

1.6%, 2.3%,2.3%, 2.5%, 2.5% for carry forward positions

Variable brokerage in five slabs of premium turnover

Minimum per lot Rs.70, Rs.80 and Rs.100 for intra-day square off

Minimum Rs. 100 per lot in case of carry forward


For most of the retail investors, higher rates will be applicable, as the applicable turnover for

lower rates may not be achieved by them

Depending upon the turnover, the accounts are given different names such as Gateway

Account, Privilege Account etc


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Religare

0.03% to 0.05%

Variable brokerage in three slabs of turnover in the steps of 0.01 each


1% of the premium amount

or Rs.75 per lot, whichever is higher

The details are applicable for Classic Account in which the traders do not have to pay any

subscription charges or fixed fees

In other accounts such as Classic Plus Account, Freedom Account, Trump Account, the

traders have to pay certain minimum fixed fees every month, six months or year. Traders will

be reimbursed brokerage maximum up to the subscription amount or will be provided certain

free turnover depending upon the type of account


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CHAPTER-V

RECOMMENDATIONS AND CONCLUSION


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RECOMMENDATIONS AND CONCLUSION

Though Religare is the best trading broker in the region, its services still require some changes so as to

bring customer satisfaction levels up. As already known Religares working is adversely affected by

the trends in the market and in these times providing the customer with all the requirements is a very

difficult task, but still every personnel at Religare tries to provide the utmost level of satisfaction to its

clients.

The changes that would help Religare to grow and sustain in my view are as follows:-

The price of the product of Religare is the least in the market but to induce prospective customers it

needs to tell the investors that even if other brokers have their prices less than Religare ,the other

brokers either charge higher brokerage or do not provide pool facility and therefore Religares product

has been priced after examining various other pricing options in the interest of the investors.

Religare should provide basic information on its product and the services offered by it. It should

make every attempt to make the consumer aware of the various facilities it provides so that the

customer can avail them. For example lot of respondents lacked information about the interest rate

being charged on margin lending , information regarding T+2 and T+5 and how to access CRN portals

and tips on stocks should be provided to customers who are using their own Odin facility etc.

The refreshment issue can be resolved by:


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By providing refreshments at a later time, in the middle of the trading period.

The water and other facilities can be moved inside the trading room so that the client doesnt have to

wait for someone to bring it to him and get it himself.

An alternative source of refreshment supply be sought so as to meet the budget of the enterprise.

Misuse and mismanagement should be checked.

Customer complaints regarding Odin diet, confirmation calling, and transactional report for income

tax purposes should be provided to the customer as per requirement. Furthermore the transactional

report should be bifurcated between long term and short term capital gain for the ease of the clients.

The Odin diet software is the most advanced and user friendly software that Religare provides for its

clients. The customer should be made aware of the many function that the Odin can provide to its the

clients.


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An RM assessment is required after every month so as to assess their performance and ask them

about the steps they have taken to retain their original customers and to induce the dormant customers

to invest and also to assess if the client is satisfied with the working of their respective RMs.

The enterprise should try to bring in the notion of customer orientation i.e give the customer what

they require, only then can it grow and reach the highest level of customer satisfaction.

Religare is the best service provider for depository and its stock trading services and has over all been

the industry leader and carved out a name for itself in the stock broking industry and with its

endeavour to retain that position certain changes in its daily working would add to its competitive

advantage.


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CHAPTER-VI

BIBLIOGRAPHY


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BIBLIOGRAPHY

BOOKS & JOURNALS:

RESEARCH METHODOLOGY METOHDS & TECHNIQUES

Author: - C.R.Kothari

MARKETING RESEARCH

Author: - David. J. Luck

Ronald S. Rubin

WEBSITES:

http://www.religaresecurities.com

http://www.nseindia.com

http://www.bseindia.com

http://www.google.com

http://www.finsights.com

http://www.asklaila.com

http://www.moneycontrol.com

http://www.adityabirlamoney.com

http://www.economictimes.com


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CHAPTERVIII

QUESTIONNAIRE


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QUESTIONNAIRE

1. Do you invest?

Yes No

2. Will you prefer shares for investment purpose?

Yes No

3. Do you have any trading ideas?

Yes No

4. If yes, then name the company?

-----------------------------------------------------------------

5. Are you aware about Religare securities Ltd.?

Yes No

6. What is your Investment objective ?

Dream Home

Tax Planning

Child Education/ Marriage

Retirement

7. Time horizon in which you have to achieve your financial goal?/how long do you plan to

invest your money?Under 2 years

2-5 years

6-10 years

Over 15 years

8. Whose opinions do you take while making your investments in share market?

Own

Friends

FamilyInvestment Consultants


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9. Most preferred form of Shares?

common shares

preference share

Any other type of Shares

10. And why?

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