Summer Training Project

On

COMPARATIVE STUDY BETWEEN RELIANCE MONEY AND RELIGARE

Submitted by

VIPIN TIWARI
In partial fulfilment of the requirement of MBA degree of IBM VBS Purvanchal University, Jaunpur Session : 2009-2011
Roll No. 157

Institute of Business Management

Veer Bahadur Singh Purvanchal University, Jaunpur

PREFACE
As a student of management in business administration, it is very important to understand the practical way of doing work in an organization or industry. The summer training provides student the opportunity to study the organization and try to correlate the theoretical and practical aspects of working in a real business environment. The summer training about COMPARATIVE STUDY

BETWEEN RELIANCE MONEY AND RELIGARE. Every industry has its own sphere of work and limitation. It is responsibility of every company to satisfy its customers because customers play important role to sale its product. Broking firms have its own important in society as well as in the nation economy. It makes ease to both the parent company and the customers by its own rendered services. It plays a major role in the security market. Religare is a leading broking house and RELIANCE MONEY is also a establish company. In city ALLAHABAD both have running with the full of its efficiency and efficacy.

The summer training report is based on the response of respondents via survey and interview and also used some of the secondary data, which provides a clear data to make a comparative study between Religare and RELIANCE MONEY broking firms in city ALLAHABAD, is done on empirical research design. It is hope that the humble effort made in the form of report will assist in the accomplishment of exploratory as well as result oriented study. (VIPIN TIWARI)

ACKNOWLEDGEMENT
I take immense pleasure in completing this project and submitting the summer training report. This project has been a platform in my learning about the broking houses and its functionality. I express my gratitude to the RELIGARE SECURITIES LTD. for providing me an opportunity to undergo such a project, which gave me through insights and experience of the corporate culture as well as the work culture of broking house. The last 2 month with RELIGARE SECURITIES LTD. has been full of learning and sense of contribution towards the organization. I would like to take this opportunity to thanks all those people who made this experience a memorable one. A successful project can never be prepared by the single effort of the person to whom project is assigned, but it also demanded the help and guardianship of some conversant person who helped the undersigned actively in the completion of successful project, so would like to thanks Mr. SOHAIL AZMAT, HEAD, RELIGARE SECURITIES LTD., Allahabad.

Special thanks to trainer Dr. Ashish Singh for there invaluable guidance, keen interest, cooperation, inspiration and of course moral through my project session. I would like to thanks my parents for their encouragement and moral support to overcome the problems during my summer training.

(VIPIN TIWARI)

DECLARATION

VIPIN

TIWARI

student

of

Institute

of

Business

Management, VBS Purvanchal University, Jaunpur.declare that I have complete my summer training report. The project report COMPARATIVE STUDY OF BETWEEN RELIANCE MONEY AND RELIGARE BROKING FIRMS is done with full faith. This project has neither been published nor submitted to any college institute/ for award of any degree/ diploma courses. The information presented in this research report is correct to the best of my knowledge.

Date : Place : ALLAHABAD (VIPIN TIWARI)

LIST OF CONTENTS
Chapter Preface Acknowledgement Declaration Chapter 1 Chapter 2 Industry Profile Role of Stock Exchange Company Profile History Our Services Vision, Mission and Objective Organization Structure SWOT Analysis Growth in Installed Capacity Growth in Production Growth in Sales Future Plans Problem being faced by the organization Formulation of problem for the project report Comparative Study Chapter 3 Research Methodology Objective of the Project Scope of the Study Period of the Study Method of Study Source of Information
7

Particular

Page No. i iii v 1 4 9 12 37 38 39 41 42 44 45 46 47 48 51 52 53 53 54 54

Statistical Tool and Technique Limitation Significance of the Study To the Company To the Industry To the Consumer To the Govt. To the Academicians Chapter 4 ANALYSIS OF DATA Preparation of tables, graph and Interpretation Chapter 5 Finding Conclusion Suggestions Annexure Bibliography Questionnaire

55 58 59

60-92

94 95 96 97 98

LIST OF TABLES
No. of Tables Page No.

Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14 Table 14(a) Table 15

61 63 65 67 69 72 74 76 78 80 82 84 86 88 90 92

LIST OF FIGURES
No. of Figures Chart 1 Chart 2 Chart 3 Chart 4 Chart 5 Chart 6 Chart 7 Chart 8 Chart 9 Chart 10 Chart 11 Chart 12 Chart 13 Chart 14 Chart 14(a) Chart 15 Page No. 62 64 66 68 71 73 75 77 79 81 83 85 87 89 91 93

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INDUSTRY PROFILE

DEPOSITORY INDUSTRY Structure SEBI

NSDL

CDSL

Depository Participants

Demat Account Holders (Clients) / Beneficiary Owners AN OVERVIEW A Depository facilitates holding of securities in the electronic form and enables securities transactions to be processed by book entry by a Depository Participant (DP), who as an agent of the depository, offers depository services to investors. According to SEBI guidelines, financial institutions,
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banks,

custodians,

stockbrokers, etc. are eligible to act as DPs. The investor who is known as beneficial owner (BO) has to open a demat account through any DP for dematerialization of his holdings and transferring securities. There are two depositories operating in India 1. NSDL 2. CDSL

1. NSDL NSDL, the first depository in India, established in August 1996 and promoted by institutions of national stature responsible for economic development of the country has since established a national infrastructure of international standards that handles most of the securities held and settled in dematerialized form in the Indian capital market. 2. CDSL Bombay Stock Exchange Limited (BSE) promoted CDSL jointly with leading banks such as State Bank of India, Bank of India, Bank of Baroda, HDFC Bank, Standard Chartered Bank, Union Bank of India and Centurion Bank.

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CDSL was set up with the objective of providing convenient, dependable and secure depository services at affordable cost to all market participants. Some of the important milestones of CDSL system are: CDSL received the certificate of commencement of business from SEBI in February 1999. Settlement of trades in the demat mode through BOI Shareholding Limited, the clearing house of BSE, started in July 1999. All leading stock exchanges like the National Stock Exchange, Calcutta Stock Exchange, Delhi Stock Exchange, The Stock Exchange, Ahmedabad, etc have established connectivity with
CDSL.

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ROLE OF STOCK EXCHANGE

Raising Capital for Businesses The Stock Exchange provides companies with the facility to raise capital for expansion through selling shares to the investing public. Mobilizing Savings for Investment When people draw their savings and invest in shares, it leads to a more rational allocation of resources because funds, which could have been consumed, or kept in idle deposits with banks, are mobilized and redirected to promote business activity with benefits for several economic sectors such as agriculture, commerce and industry, resulting in a stronger economic growth and higher productivity levels. Facilitate Company Growth Companies view acquisitions as an opportunity to expand product lines, increase distribution channels, hedge against volatility, increase its market share, or acquire other necessary business assets. A takeover bid or a merger agreement through the

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stock market is the simplest and most common way to company growing by acquisition or fusion. Redistribution of Wealth By giving a wide spectrum of people a chance to buy shares and therefore become part-owners (shareholders) of profitable enterprises, the stock market helps to reduce large income inequalities. Both casual and professional stock investors through stock price rise and dividends get a chance to share in the profits of promising business that were set up by other people. Corporate Governance By having a wide and varied scope of owners, companies generally tend to improve on their management standards and efficiency in order to satisfy the demands of these shareholders and the more stringent rules for public corporations by public stock exchanges and the government. Consequently, it is alleged that public companies (companies that are owned by shareholders who are members of the general public and trade shares on public exchanges) tend to have better management records than privatelyheld companies (those companies where shares are not publicly traded, often owned by the company founders and/or their families and heirs, or otherwise by a small group of investors). However,
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some well-documented cases are known where it is alleged that there has been considerable slippage in corporate governance on the part of some public companies (e.g. Enron Corporation, MCI WorldCom, Pets.com, Webvan, or Parmalat). Creates Investment Opportunities for Small Investors As opposed to other businesses that require huge capital outlay, investing in shares is open to both the large and small stock investors because a person buys the number of shares they can afford. Therefore the Stock Exchange provides an extra source of income to small savers. Government Raises Capital for Development Projects The Government and even local authorities like municipalities may decide to borrow money in order to finance huge infrastructure projects such as sewerage and water treatment works or housing estates by selling another category of securities known as bonds. These bonds can be raised through the Stock Exchange whereby members of the public buy them. When the Government or Municipal Council gets this alternative source of funds, it no longer has the need to overtax the people in order to finance development. Barometer of the Economy
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At the Stock Exchange, share prices rise and fall depending, largely, on market. Share prices tend to rise or remain stable when companies and the economy in general show signs of stability. Therefore the movement of share prices can be an indicator of the general trend in the economy Procedure of Dealing in Stock Market The buying and selling at stock exchange is not allowed to outsiders. They have to approach brokers what are the members of the exchange and dealings can only be through them. The first thing to be done is to select broker through whom the purchase or sale is to be made. After selecting the broker the client places an order for purchase or sale of securities. The broker enters the order through his PC, which run under windows NT and send signal to the satellite via, VSAT (very small aperture terminal) modem. The signal is directed to mainframe computer at NSE via VSAT at NSE office. A message relating to the order activity is broadcast to the respective member. The order confirmation message is immediately displayed on the PC of the broker. The order matches with the existing passive orders, otherwise it waits for the active orders to enter the system .The Trading system operates on a strict price time priority. All orders received on the
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system are sorted with the best priced order getting the first priority for matching i.e. best buy order matches with the best sell order. Similarly price orders are sorted on a time priority basis i.e the one that come in early gets priority over the later one. Orders are matched automatically by the computer keeping the system transparent objective and fair. The trade details are forwarded to the NSCCL (National Securities Clearing Corporation Ltd.) by

NSE . NSCCL determines what counter parties owe and what counter parties are due to receive on the settlement. The member bring their funds/ securities to the NSCCL by the prescribed pay in time. Thus at the time of pay out the NSCCL deliver the funds to the respective seller and securities to the respective buyer. This can be shown with the help of the diagram.

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HISTORY
In the world of expansion and growth where wealth and investments play an important role in our life, preserving and increasing your wealth is an ambitious and challenging task. Financial markets have become global, interconnected and hence more volatile. To profit from these changes and challenges, you need a dedicated and reliable partner. RELIANCE MONEY is focused on Equity and Commodity Broking with Corporate Office in Mumbai and branch offices in various cities of India. We combine a strong understanding of the global equity and commodity markets with an ever changing dynamics to create inventive solutions for our clients. RELIANCE MONEY offers a wide range of services for high net-worth individuals. Our aim is to assist clients in devising strategies in accordance with the investment objectives for creation and management of their wealth. Beginning as a Broking House, we grew into Business House. We broadened our horizons and stepped into the field of Depository, Stock Broking, Commodity Trading, Online Trading (Equity, F&O, Currency and Commodity), RELIANCE MONEY today
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commands the status of being one of the leading Depository Participant of India in Private Sector. Moreover, RELIANCE MONEY has Trading Terminal Outlets for NSE & BSE spread to almost every nook & corner. RELIANCE MONEY offers a wide range of services for high net-worth individuals. Our aim is to assist clients in devising strategies in accordance with the investment objectives for creation and management of their wealth, which includes: 1 Equity and F&O Broking (NSE & BSE) 2 Commodities Broking (NCDEX & MCX) 3 Currency Derivative (NSE & MCX-SX) 4 Depository Services (CDSL) 5 Insurance 6 IPOS 7 Mutual Funds RELIANCE MONEY'S motto is to gain a foothold in the hearts of the investors whom we serve with full zeal and vigor.

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OUR SERVICES
Depository Participant Enter a world of safe, secure and convenient buying, selling and transacting without suffering endless paperwork and delays. Convert your securities to electronic format with RELIANCE MONEY INVESTMENT & SECURITIES PVT. LTD. Demat Account. It's as easy as opening a bank account. A Depository is an entity that holds shares of investors in the form of electronic accounts in the same manner as a bank holds money for depositors. Depository system is a facility of holding and trading shares and securities in electronic mode through a depository. As per the Securities & Exchange Board of India (SEBI) Directives, w.e.f. 02 Jan 2002 all trades of shares and securities will be settled only in Demat mode by all classes of investors. This implies that w.e.f. 02 Jan 2002, all investors will have to open a Demat account to trade in shares and securities. So now postal delays, mutilated certificates, lost certificates and counterfeit shares are a thing of the past. The introduction of scripless holding and transaction of securities provides various benefits to investors viz.
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1 You are protected against loss ,theft, forgery, mutilation etc. 2 You are protected against bad deliveries. 3 Your shares get transferred immediately. 4 You have shorter settlement cycles. 5 You do not have to pay any stamp duty. 6 You have minimum paper work. 7 You bear minimum costs. 8 You can also buy and sell just one share and not market lots. What's more, RELIANCE MONEY INVESTMENT &

SECURITIES PVT. LTD. provides you with online access to your Demat Account enabling you to check your holdings using the Idepository facility. Transactions you can conduct with a Demat Account Credit Transaction In a Credit transaction, you can receive shares in your Demat Account. You could give a standing instruction for the receipt of shares in your demat account. Debit Transaction In a Debit transaction, shares are transferred from your
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account to the Demat Account of the receiver as per instructions on the personalised instruction book. The debit instruction needs to be signed by ALL Account holders. Electronic Credit in Public Issue You can receive allotment on public issues directly in your Demat Account, as provided by the Depository system. Receive Non-Cash Corporate Benefits in Electronic Form You can receive benefits like bonus, rights, etc. directly in your Demat Account as provided by the Depository system. In line with our commitment of providing highly evolved products and prompt services, we are also providing SPEED-E facility for executing delivery instructions through the Internet. Already being availed by a large number of clients, this facility has eliminated the process of physical delivery instructions. RELIANCE MONEY INVESTMENT & SECURITIES PVT. LTD. is a one-stop electronic age solution to your Capital Market Instruments. Just open a depository account with any of the branches of RELIANCE MONEY INVESTMENT & SECURITIES PVT. LTD. and thereafter you may operate your account and receive / give delivery
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for all buy / sell transactions done, merely by giving instructions to RELIANCE MONEY INVESTMENT & SECURITIES PVT. LTD. accordingly FUTURES & OPTIONS RELIANCE MONEY takes pride in introducing itself as a Trading Member (TM) for Derivatives segment. To provide quality service in this segment, we have a dedicated department for Derivatives, being run by professionals with sound knowledge and experience of the segment. Derivatives trading has already been commenced by two of our premier bourses in the country to impart much needed trading depth to our Stock Exchanges and to bring overall growth and development in the Capital market. Derivatives serve the economic purpose of cost effective risk management and this is reflected in the fact that Derivatives market world over trade several multiples of the volumes that occur in the cash market today. Interestingly, it has always existed in India in some form or the other. You are invited to take advantage of our expertise in the area of derivatives. Derivatives are contracts, which derive their value from its underlying. Derivative instruments are regularly traded both in the Exchange and in the over-the-counter markets.
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STOCK BROKING RELIANCE MONEY facilitates trading in Secondary Market in Equity Trading & Derivative (Future & Options) Trading through its Corporate Membership of the premier exchanges of the country namely the National Stock Exchange (NSE). RELIANCE MONEY'S On-Line Terminals are installed in all the major cities of India and its trading clients are categorized as Retail Sub-Brokers and Corporate. We provide very competitive brokerage rates and full transparency in operations. COMMODITY TRADING If you are looking for access to various commodities and research to help you sell, buy, hedge, speculate, invest, import or export on your own, for investment advice or for an independent financial advisor to manage your imports and exports, RELIANCE MONEY is a one stop solution. RELIANCE MONEY Commodity Pvt Ltd. (LCPL) a sister concern of RELIANCE MONEY INVESTMENT & SECURITIES PVT. LTD. provides you the facility to trade in commodities. With LCPL you can trade on two major commodity exchanges of the country: National Commodity and Derivative Exchange and Multi Commodity Exchange of India Ltd. Online Trading Platform with
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best of "Technology & Art" to its valued constituents is available on RELIANCE MONEY outlets. As a result of lifting restrictions and setting up of nation-wide online multi commodity exchanges such as NCDEX, MCX a centralized trading environment across India has been created for offering Futures trading in several Agricultural Commodities, Precious Metal and Base Metals. Further, the authorities have kept in mind the economic purpose of a Commodity Futures Exchange as a market place , enabling the Producers/Processors to sell it in advance to protect them against possible price fall and allow Consumers-Traders, Processors and Exporters to buy in advance to protect against possible price increase. In this way they are able to "Hedge" their price risk. As a result of prevailing favourable market conditions the wings of this trade are further spreading globally as a vision of World Commodity Market. Therefore, the Commodity Exchanges with the contribution mainly routed through the Brokers engaged in Commodity Segment who in turn mainly with the involvement of following types of participants in the Futures Markets are giving the business volumes.
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Participants in Futures Market 1 Hedgers 2 Speculators 3 Arbitrageurs Hedgers reduce their price risk which they face from the price movements and very often, they would like to sacrifice the potential upside to gain certainty about prices. Speculators take the directional view of future price movements and take on the risk that hedgers like to reduce. Arbitrageurs exploit price differentials on the same

commodities / contracts that are traded on two different markets (for example, between futures Prices in two Exchanges). CURRENCY TRADING I have great news that I believe will be of incredible financial benefit to you. But I don't want to waste your time if this isn't for you, so answer these simple questions and keep on reading only if you answer 'yes' to at least one: 1 Have you ever dreamed of retiring early, only to have that dream shattered by the reality of your bank account?

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2 Do you ever watch with envy as others make a killing on their investments, while yours just plod along? 3 Have you ever felt like your investments and savings could be doing better, but you just don't know exactly what to do, or how to do it safely? 4 Have you ever thought, 'there has to be a better way to get ahead'? I figured you'd still be with me. Because, believe me, you're not alone. Most Americans share your dreams of financial security. And most know they could be doing better financially than they are right now. But they, like you, have been misled into believing that earning extraordinary investment profits is too complicated, or is only for those who already have lots of money to invest. Here's my GREAT NEWS for you today: These are just myths - 100% NOT true. The truth I want to prove to you today is this: 1 No matter what your age ... 2 No matter what your current bank account ... 3 No matter what your education ... 4 No matter what your career or profession ... Every Single One Of Your Financial Dreams Can Come True!
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And if you'll give me just 10 minutes a day or night, Ill prove it to you with 100% certainty. Better yet, you'll prove it to yourself beyond all shadow of doubt - without risking one thin dime! My proven Power Investing system turns average investors like yourself into HIGH-PROFIT, low-risk entrepreneurs. It gives you everything you need to be successful and build wealth steadily. Every step has been tested and proven to work. Plus my program will ABSOLUTELY NOT allow you to risk any money until after you have tested and seen the big profits for yourself. You see, as soon as you receive my program, you can practice it 'one paper without putting one cent of your hard earned money at risk. I will teach you, step-by-step, how to trade and track real investments for huge profits with "play money". And most certainly, before you invest one red cent, you will wish you had started this long ago as you see the huge profits you could be raking in. INSURANCE What is risk and why insurance is done? Risk means that there is a possibility of loss or damage. It may or may not happen. Insurance is done against the contingency
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that it may happen. Insurance compensates the economic loss (though not fully). Living too long is a risk? Yes, living too long is as much as a risk as of dying too young. Death takes away income, old age reduces or takes away income. These risks are taken care off by life insurance. Annuity policies (Pension scheme) are available to take care of old age. Financial Independence during old age is an absolute necessity. How insurance is social security tool? When the breadwinner dies, the family income dies. The economic condition of the family is affected and unless some arrangements are available, the family is pushed to lower strata of society. Life insurance comes in handy to restore the situation to some extent. Poor people cost the nation by way of subsidies and doles and so on. Life insurance tends to reduce such costs. In this sense, life insurance is complimentary in the state's efforts in social management. What is free cover limit? The average sum assured of the group is called free cover limit of the group as a whole. The sum assured for the individual in
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the group is decided on a predetermined formula. The average sum assured is arrived at by dividing the total sum assured of the group by the number of members covered in the group. What is "Simple Reversionary Bonus"? Under this system, bonus is declared as so many rupees per thousand sum assured and stands attached to the policy. This is payable along with insured amount as and when payable (i.e either on death or on maturity). What is compounded Reversionary Bonus? Under this system, bonus declared for a particular year gets added to the sum assured and this figure is taken for calculation of bonus for the next year i.e. Bonus is also paid on the bonus additions to the sum assured. Who is an Actuary in Insurance Company? An actuary is a technical person, who has passed specialised examinations conducted by Institute of Actuaries London or Actuarial Society of India. An Actuary in an insurance company determines the policies to be offered (plans of insurance) and the premium to be charged to the insuring public. He also advises the company about the policies to follow regarding investment of funds,
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deciding the bonus to be declared and so on. I have decided to take up an insurance policy. What are the various kinds of insurance plans that are available in the market? Deciding upon an insurance scheme requires a close introspection of your own needs and requirements. We shall highlight the salient features of the 4 major varieties of insurance schemes that are available in the market today. Based on this we hope that you will be able to take an informed decision: Term Plan - This is the cheapest variety of insurance plan. Under such a plan there are no death benefits. However, on death the policy holder will get the sum assured. But in case of certain policies like ICICI Prudential's term plan the premiums are returned on death. Endowment Plan - In this case the money is returned after death or maturity whichever is earlier. The sum assured is topped with attractive bonuses. However, it is important for the policyholder to note that the bonuses are not guaranteed and they depend upon the performance of the company. Money Back Plan - Insurance is generally a long term financial commitment, lasting for a period of 10 - 20 years. Under other policies the money is returned only after the entire period or on
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death (whichever is earlier). But in case of a money back plan the money is returned at intermittent intervals. In case you will be in need of cash for various expenses then you can consider a money back plan. Needless to say, since this plan offers a certain amount of liquidity, these plans are the most expensive. Unit linked plans - These plans are the new generation products of the insurance industry. These policies seek to combine the best features of insurance and mutual funds. A portion of the premium is invested in securities depending upon the scheme that you select. You have equity centric schemes, debt centric schemes and balanced schemes. The investor may choose whichever scheme he/she considers best suited to his risk appetite.

IPO What is an IPO? An Initial Public Offer (IPO) is a means of collecting money from the public by a company for the first time in the market to fund its projects. In return, the company gives the share to the investors in the company. What is the difference between an IPO and Book Building?
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In an IPO, the Lead managers decide the price of the issue. In a book building offer, the syndicate members decide the indicative price range and the investors decide the price of the issue through a tender method. How can I get information on forthcoming IPOs? When you open the nseindia.com, the home page has a feature "IPOs/Public Issues Monitor", which features in-depth analysis of IPOs, book building issues and rights-cum-public offers. When clicked on it, you will get a list of forthcoming issues whose opening and closing dates are finalized.

Where can I read your investment recommendations on forthcoming IPOs / public issues? At the bottom of the Highlights page there is a facility to click and view the Executive Summary of the issue. In the executive summary, our research team analyzes the forthcoming issue based on its financials, promoters' background, project details, future prospects etc. and help the investor in deciding whether the issue is worth investing or not.
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Can I apply for the IPO online? As per the cyber rules of Government of India, this facility is not provided. Only in case of book building issues, the brokers can bid online on behalf of subscribers. Is this IPO a good investment? When you go through the executive summary of an IPO, our research team provides its opinion on the issue based on an analysis of the company's financials, promoters' background and other qualitative issues. This can help in guiding your investment decision. When will the Share certificates / refund orders reach me? In a public issue, you will be getting refund or share certificates after 40-45 days from the closing date of the issue. In a book building issue, you will be getting the refund/certificates in 3040 days from the closing date. The Share certificates will also be mailed around the same time if you have got the allotment. How do I know if the IPO has been listed on the stock exchange?

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On the IPO home page, there is a clickable icon for new listings. Just click on that icon and you will get an updated status of new listings on a daily basis. In book building can I improve my chances of allotment by quoting the price above the price band? Please bear in mind that in a book building exercise the final price is decided based on at what price the maximum demand can be generated for the issue. Your quoting a price above the band "will not" in any way improve your chances of getting an allotment. Ultimately you will be allotted the shares only at the price decided by the company based on the bids received. Also note that if you quote a price below the band then you will get the last priority for allotment and that too at the discretion of the company.

Mutual Funds A Mutual Fund is a body corporate registered with the Securities and Exchange Board of India (SEBI) that pools up the money from individual / corporate investors and invests the same on behalf of the investors /unit holders, in equity shares, Government securities, Bonds, Call money markets etc., and
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distributes the profits. In other words, a mutual fund allows an investor to indirectly take a position in a basket of assets. What is the Regulatory Body for Mutual Funds? Securities Exchange Board of India (SEBI) is the regulatory body for all the mutual funds mentioned above. All the mutual funds must get registered with SEBI. The only exception is the UTI, since it is a corporation formed under a separate Act of Parliament. What are the broad guidelines issued for a MF? SEBI is the regulatory authority of MFs. SEBI has the following broad guidelines pertaining to mutual funds: 1 MFs should be formed as a Trust under Indian Trust Act and should be operated by Asset Management Companies (AMCs). 2 MFs need to set up a Board of Trustees and Trustee Companies. They should also have their Board of Directors. 3 The net worth of the AMCs should be at least Rs.5 crore. 4 AMCs and Trustees of a MF should be two separate and distinct legal entities. 5 The AMC or any of its companies cannot act as managers for any other fund.
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6 AMCs have to get the approval of SEBI for its Articles and Memorandum of Association. 7 All MF schemes should be registered with SEBI. 8 MFs should distribute minimum of 90% of their profits among the investors. There are other guidelines also that govern investment strategy, disclosure norms and advertising code for mutual funds. Why should I choose to invest in a mutual fund? For retail investor who does not have the time and expertise to analyze and invest in stocks and bonds, mutual funds offer a viable investment alternative. This is because: 1 Mutual Funds provide the benefit of cheap access to expensive stocks. 2 Mutual funds diversify the risk of the investor by investing in a basket of assets. 3 A team of professional fund managers manages them with indepth research inputs from investment analysts. 4 Being institutions with good bargaining power in markets, mutual funds have access to crucial corporate information which individual investors cannot access.
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How do mutual funds diversify their risks? Financial theory states that an investor can reduce his total risk by holding a portfolio of assets instead of only one asset. This is because by holding all your money in just one asset, the entire fortunes of your portfolio depend on this one asset. By creating a portfolio of a variety of assets, this risk is substantially reduced. Can mutual funds be viewed as risk-free investments? No. Mutual fund investments are not totally risk free. In fact, investing in mutual funds contains the same risk as investing in the markets, the only difference being that due to professional management of funds the controllable risks are substantially reduced. What are the risks involved in investing in mutual funds? A very important risk involved in mutual fund investments is the market risk. When the market is in doldrums, most of the equity funds will also experience a downturn. However, the company specific risks are largely eliminated due to professional fund management. What are open-ended and closed-ended mutual funds?

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In an open-ended mutual fund there are no limits on the total size of the corpus. Investors are permitted to enter and exit the open-ended mutual fund at any point of time at a price that is linked to the net asset value (NAV). In case of closed-ended funds, the total size of the corpus is limited by the size of the initial offer. No purchases could be made after the issue closes. What are the parameters on which a Mutual Fund scheme should be evaluated? Performance indicators like total returns given by the fund on different schemes, the returns on competing funds, the objective of the fund and the promoters' image are some of the key factors to be considered while taking an investment decision regarding mutual funds. What are the different types of plans that any mutual fund scheme offers? That depends on the strategy of the concerned scheme. But generally there are 3 broad categories. A dividend plan entails a regular payment of dividend to the investors. A reinvestment plan is a plan where these dividends are reinvested in the scheme itself. A growth plan is one where no dividends are declared and the investor only gains through capital appreciation in the NAV of the
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fund. What is NAV and how it is calculated? NAV is the net asset value of the fund. Simply put it reflects what the unit held by an investor is worth at current market prices. What proportion of my investment should be invested in mutual funds? This decision will depend on factors like your income, financial objectives, value of assets, investment horizon, risk taking ability, tax status, etc. You can contact Karvy and we will advice you on the proportion you need to allocate to mutual funds and suitable schemes. Like IPOs, can there be any situation wherein I am not allotted the units applied for in the initial offer? In case of closed-ended funds there is a target amount and the funds are permitted a green-shoe option to retain oversubscriptions up to a certain limit. In case of open-ended funds there are no such limits and all applications are honored. If schemes in the same category of different mutual funds are available, should one choose a scheme with lower NAV?
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Some of the investors have the tendency to prefer a scheme that is available at lower NAV compared to the one available at higher NAV. Sometimes, they prefer a new scheme which is issuing units at Rs.10 whereas the existing schemes in the same category are available at higher NAVs. It should be noted that in case of mutual funds, lower or higher NAVs of similar type schemes of different mutual funds have no relevance. Consider this example: Suppose scheme A is available at a NAV of Rs.15 and scheme B at Rs.90. Both schemes are diversified equity oriented schemes. Investor has put Rs.9,000 in each of the two schemes. He would get 600 units (9000/15) in scheme A and 100 units (9000/90) in scheme B. Assuming that the markets go up by 10 per cent and both the schemes perform equally well which is reflected in their NAVs. NAV of scheme A would go up to Rs.16.50 (10% of Rs.15) and that of scheme B to Rs.99 (10% of Rs.90). Thus, the market value of investments would be Rs.9,900 (600* 16.50) in scheme A and it would be the same amount of Rs.9900 in scheme B (100*99). So, the return on investment in both the cases is same.

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Hence, investors should choose a scheme based on its merit considering performance track record of the mutual fund, service standards, professional management, etc. rather than NAV value. Electronic Access to Securities Information (easi) The evolution of the Indian capital market has seen several enhancements during the past few years and this has been a result of innovative use of newer technologies. In the reduced settlement cycle era, investors require updated demat account information at a much faster pace than ever before. In other words, the quest for account status information has risen manifold. In order to assist a CDSL demat account holder to easily adapt to the fast reducing settlement cycle, CDSL has introduced easi, its Internet-enabled services to empower a demat account holder in managing his securities anytime-anywhere in an efficient and convenient manner, all in a state-of-the-art secure environment. easi, which enables a Demat Account Holder or Beneficial Owner (BO) / Broker or Clearing Member (CM) to view the holdings and transactions. What is easi?

43

easi (Electronic Access to Securities Information) is a convenient, easy to operate internet based facility, which allows registered Beneficial Owners (BOs) & Clearing Members (CMs) to access their demat account through the internet to check the details of their holdings and/or transactions,anytime anywhere, through CDSLs website www.cdslindia.com. What are the benefits of easi to BOs? 1 Viewing and printing details of holdings and/or transactions for last 7 days in their account. 2 Viewing and printing the valuation of holdings in their demat account based on the previous days closing price on BSE. 3 Viewing multiple demat accounts through a single Login Id. Monitoring corporate announcements related to the securities, held in their demat account. A BO also has the additional option to add upto 25 ISINs not held in their demat account, but wishes to monitor corporate announcements for such ISINs. Can all BOs/CMs use this facility? Yes, this facility is available to all BOs and CMs. Can I monitor corporate announcements for the shares in my demat account through my easi?
44

Yes, you can monitor corporate announcements for the securities held in your demat account through your easi login. You can also add ISINs not held in your demat account, but wish to monitor corporate announcements for such ISINs.

INTRODUCTION OF RELIGARE
Religare, a Ranbaxy promoter group company, is one of Indias largest and fastest growing integrated financial services institutions. The company offers a large and diverse bouquet of services ranging from equities, commodities, insurance broking, to wealth advisory, portfolio management services, personal finance services, Investment banking and institutional broking services. The services are broadly clubbed across three key business verticals- Retail, Wealth management and the Institutional spectrum. Religare Enterprises Limited is the holding company for all its businesses, structured and being operated through various subsidiaries.

45

VISION, MISSION AND OBJECTIVE

Vision To provide world class investment solutions to the class of investors who believe in 'India as a story whose time has come and empower them through technology'. To provide the most useful and ethical Investment Solutions - guided by values driven approach to growth, client service and employee development. Mission To empower individual investors to take control of their financial lives, free from the high costs and conflicts of traditional stock broking firms. Our Team 1 Knowledgeable experience professionals having in-depth knowledge. 2 Dedicated employees committed to customer services Objective 1. To treat customers with dignity, respect and care. 2. Consistent efforts to improve our skill and services to serve the customers better.

46

ORGANIZATIONAL STRUCTURE

Mr. SALIL KUMAR SHAH (DIRECTOR)

Mr. ANJESH SHAH (MARKETING MANAGER)

Mr. SHIVENDRA SINGH (RELATIONSHIP MANAGER)

WORK FORCE (Operation)

WORK FORCE (Marketing)

WORK FORCE (Human Resource)

47

SWOT ANALYSIS
STRENGTHS WEAKNESSES RELIANCE MONEY has a less number of to branches other in DPs comparison Accounts. follows There is no at Management (MIS) RELIANCE Information maintained MONEY. The company is not providing its all the services in ALLAHABAD. System

Ability to satisfy the want of

customer by its different valueadded product under one roof. The major strength MONEY MONEY is of the RELIANCE RELIANCE

operating with same number of

Consumer Satisfaction. strictly the rules and regulations of the regulatory body SEBI and also depositorys NSDL and CDSL. RELIANCE MONEY provides a composite demat solution which is simple and safe and services that suit your specific needs. Resources are available in full. OPPORTUNITIES Rural area is rapidly growing so company can expand business by opening its branches at rural sides. Company should expand its business through franchise. People who have knowledge about share trading should be motivated for taking initiatives to earn more revenue. i. e.

THREATS The companies operating with nominal brokerage & minimum processing fees. The major threat is the bankDPs operating in the market. The person having bank account in the DP, wants to open demat account in the same DP. The modified rules and regulations imposed by SEBI, 48

NSDL and CDSL.

RELIANCE MONEY has been launched before some times in ALLAHABAD. While others security houses are established earlier it, so they have more customers than RELIANCE MONEY. Also they have made the market concentrated so RELIANCE MONEY may find difficulties customers. in making new

49

GROWTH IN INSTALLED CAPACITY

Now RELIANCE MONEY Broking House is looking to install its new units in the ALLAHABAD city at different locations to capture and capitalize in the market. At present the no. of d-mat a/c and trading a/cs in the organization is relatively very low rather than other broking house. At present the sale of other financial instrument is very low from the RELIANCE MONEY, in coming time the organization has plan to increase the sale.

50

GROWTH IN PRODUCTION
Till the last financial year company generates the revenue of Rs. 29,40,000 million via Equity and F&O Broking (NSE & BSE), Commodities Broking (NCDEX & MCX), Currency Derivative (NSE & MCX-SX), Depository Services (CDSL), Insurance, IPOs, Mutual Funds. The contribution of production of Equity (Future & Option) is about 900000 million in whose contribution, now the company has targeted that it will be 10,00,000 million in the current financial year. The contribution of Commodities broking in the previous financial year 5,00,000 million in whole, now the company has targeted that it will be 08,00,000 million in the current financial year. The contribution of Current Derivative in the previous financial year 06,00,000 million in whole, now the company has targeted that it will be 10,00,000 million in the current financial year. The contribution of Depository Services in the previous financial year 03,00,000 million in whole, now the company has targeted that it will be 05,00,000 million in the current financial year. The contribution of Insurance, IPOs and mutual funds are in the previous financial year 06,40,000 million in whole, now the
51

company has targeted that it will be 18,00,000 million in the current financial year. Over all it can say the company has to promote its services to achieve its desired target via better and improved services, healthy customer relation, post purchase behaviour etc.

52

GROWTH IN SALES
In the last financial year company generates the revenue of Rs, 29,40,000 million via sale of equity and F&O broking (NSE & BSE), Commodities broking (NCDEX & MCX), Currency Derivative (NSE & MCX-SX), Depository Services (CDSL), Insurance, IPOs, mutual funds. The contribution of production of equity (future & option) is about 90000 million in whole contribution and till the date (08.08.2009) it approaches 60,000 additional revenue via the excess sell of the services of the company. The contribution of Commodities broking in the previous financial year 05,00,000 million in whole, and till the time it approaches 1,80,000 additional revenue via the sell. The contribution of Depository Services in the previous financial year 03,00,000 million in whole and now it approaches 1,00,000 additional revenue via the excess sell of the services of the company. The contribution of Insurance, IPOs and mutual funds are in the previous financial year 06,40,000 million in whole and now it approaches 2,20,000 additional revenue via the excess sell of the services of the company.

53

FUTURE PLAN

RELIANCE MONEY has motto to gain a foothold in the hearts of the investor whom we serve with full zeal and vigor. To maintain this relationship and serve you with more efficiency and personally fix an appointment to give you the most competitive deal.

54

PROBLEM BEING FACED BY THE ORGANIZATION

At present the various broking houses are running in the market and some of the local stock broker are also prevailing in the market.

Problem regarding the selection of proper area in the city to approach the customers properly.

Lack of proper communication with to the existing and potential customers.

It is difficult to telling to the illiterate person about the production quality because they concentrate on the price of product.

55

PROBLEM FORMULATION
1. What is the company position in the market in comparison to

Religare. 2. To analyse whether the company is increasing its

performance.
3.

In comparison to Religare now a day where Reliance Money

stands.

56

PART II

COMPARATIVE STUDY BETWEEN RELIANCE MONEY AND RELIGARE BROKING FIRMS

In my comparative study I tested the both broking firms in various dimensions and try to conclude the about the both firms. This study and test is based on the data regarding city ALLAHABAD. Dimensions NAME OF THE FIRMS Religare RELIANCE MONEY Awareness about firm No. of Branch No. of Man power Status Consumer Satisfaction Revenue generation* Customer Relation 55% 3 More than 80 Maturity Great Extent 2000000 Good 45% 4 More than 70 Maturity Great Extent 2600000 Good

57

The above mention datas are based on the response of 120 respondents. Following are concluded on the behalf of above : AWARENESS ABOUT THE FIRM Religare is one of the biggest broking firms in the India. RELIANCE MONEY is a newly establish broking house. The awareness about Religare is more than the RELIANCE MONEY in city ALLAHABAD. 55 per cent people are aware about the firm Religare on the other hand 45 per cent are aware about the RELIANCE MONEY. NO. OF BRANCHES Religare has its branches in three different locations in city ALLAHABAD. RELIANCE MONEY is a new broking house and it has one branch in city ALLAHABAD. NO. OF MAN POWER There is no proper knowledge about this section because no any one conveys its original strength. The given information is based on the perception while collecting data about the firms. Well according to my perception I recognized more than 80 employees in the all three branches of Religare on the other hand RELIANCE MONEY contain only one branch and its no. of manpower is 70.
58

STATUS Religare is a world class broking house and a oldest broking house in India. It has in its maturity stage and with the changing it survive efficiently in the market. On the other hand RELIANCE MONEY is a newly establish broking house and it is in the introduction stage in business life cycle. CUSTOMER SATISFACTION With the variety of product and indepth in the product line, height and weight Religare gets good response rather than RELIANCE MONEY. According to the response of respondents Religare gets Great Extent on the other hand RELIANCE MONEY gets Less Extent. *REVENUE GENERATION Revenue generation is Religare has three branches in the city ALLAHABAD and its revenue is more than RELIANCE MONEY. The figures mentioned above is assumed figure based on the previous records of the both firms. CUSTOMER RELATION Both broking houses have good relation with their customers.
59

RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by researcher. It is also necessary for the researcher to know not only the research methodology research method but also

also need to understand the assumption

underlying various technique and they need to know the criteria technique and procedures will be applicable to certain problem and other will not.

MEANING OF RESEARCH In common research is refers to as a search for knowledge. Research may also define as a scientific and systematic search for pertinent information on a specific topic. In fact research is an art of scientific investigation. According to Redman & Moray research is a systematized effort to gain new knowledge. Some people consider research as a movement, a movement from the known to the unknown.

60

OBJECTIVE OF RESEARCH
The purpose of my study is make a comparative study between two broking firms in city ALLAHABAD viz. Religare and RELIANCE MONEY on the behalf of buyers and the information from the both firms. The main aim of research is to find out the truth which is hidden and which has not been discovered yet. The main objective of research is as follows:
1

Are the customers aware about the both firm and how many people are utilizing the services of broking firms.

2
3 4

Which one is superior between two. To know market Position of both firms in City ALLAHABAD. To know about different type of investor in city ALLAHABAD. What facility you are looking from your broking house. %age of people enjoying the services of RELIANCE MONEY. Major cause behind the entertaining the broking services.

5
6

61

SCOPE OF THE STUDY

This study is based on the data and information provided by the RELIANCE MONEY and the response of the respondents to find out the comparative study between the RELIANCE MONEY and Religare. Company can utilize this data or information for own development in the future or make a strategy to overcome from the low generation of revenue and business.

PERIOD OF STUDY
IN my study I had taken one year data of the RELIANCE MONEY and Religare i.e. financial year 2009-2010.

62

METHOD OF STUDY
I applied Survey and interview method over the 120 respondents on the behalf of convenience sampling. In my study respondents are common people, students, teachers, owner of share terminals, businessman etc. Option Method of sampling Size of Sampling Response Survey & Interview Method 120

SOURCE OF INFORMATION RESEARCH DESIGN A research design is the arrangement of condition for collection and analysis of data in a manner that aims to combined relevance to the research purpose with economy in purpose. In this summer training report I have used descriptive research design. I used the area of ALLAHABAD for my study. SOURCES OF PRIMARY DATA

63

The data I have collected are primary data on the sampling basis, which I personally collected from the investors, teachers, students etc. PRIMARY DATA Data which is collected by researcher first time by him known as Primary date. In my project the data collected is first time. SECONDARY DATA The secondary data on the other hand are those which have already been collected by some one else and which have already been analyzed with the help of statistical tools. In my research I collected my secondary data from the previous records of the company internet, various journals, articles, training report of previous student who worked before the topic of mutual funds.

STATISTICAL TOOLS AND TECHNIQUES In my research various statistical tools and techniques are applied like mean of the response of the respondents, ratio, %age, and correlation. After categorizing the different values of the respondents the
64

Mean is applied for making the total amount in the meaningful character.
Mean =

x
n

Where, x = total summation of the values n = no of sample size After concluding the mean of the data of the respondents, it comes necessary that it should presented in that manner to understand with ease. Percentage represents whole valued in the mean of 100.
%age =

x x 100
n

x = total summation of the values n = no of sample size After calculating the mean the multiplication into 100 represents the value into %age. Correlation is apply to conclude the relation between different factors of the questionnaire, response of the respondents etc. that the relations between the factors are positive or negative.
65

r=

cov ( xy ) xy

Where, r = correlation cov (xy) = covariance of x and y x = Standard deviation of x y = Standard deviation of y x and y are variables.

66

LIMITATIONS
Every study has its own limitations. My study has also some limitation 120 respondents never represents a specific market

segmentation. The income of individual, size of family, human intention are various factors that affect the investment decision of the individual. The investors are not like to convey their income and age group so it comes difficult to conclude a actual one.

Usually respondents are not very interested in such type of surveys or personal interviews.

Different investors are involve (small as well as large) in this and the aggregate scores are not truly representing the view of respondents.

Time was the major constraint for the respondents because the share market is always a subject of risk. Some of respondent did not give accurate answer for the question and not disclose the investment amount.
67

SIGNIFICANCE OF THE STUDY

To the Company Company may come in the position to understand that where does it stand in comparison of its competitors and make a strategy to overcome the problem faced by company now. To the Industry Company formulate the problem after understanding whole problem for get more profit. To the Consumers To build good relationship with company.

Consumer will be in the position to get better services.

To Government Increase in economic condition. Increase the employment etc.

68

DATA ANALYSIS AND INTERPRETATION

This term comes after the collection of data. An analysis of data refers to the establishment of categorization according to the attributes of data, segmentation, coding, tabulation and drawing statistical inference. On the other hand the interpretation refers to make a conclusion on the behalf of above analyzed data. On the behalf of data collection, analysis and interpretation the conclusion is realized. On the behalf conclusion a researcher can make a cros and pros to the company and suggest the company what is the presently and what should be next to over come to any trouble some.

69

Table 1 : Do you make investment in share market? Option Yes No Interpretation From the above mentioned table 1, it is concluded that 65 per cent respondents are investing their money or saving in the share market on the other hand rest 35 per cent are not investing their money or saving the share market. Response 65 35

70

71

Table 2 : Are you know about the Religare and RELIANCE MONEY broking houses. Option Religare RELIANCE MONEY Both Response 50 33 17

Interpretation From the above table it is concluded that every broking house have is known by the respondents of city ALLAHABAD. Religare gets the 50 per cent confidence of the respondents, RELIANCE MONEY gets 33 per cent and 17 per cent respondents have view that they know the both firms. The above data presented in the table is based on the survey of 120 respondents.

72

F ig .
60

73

Table 3 : Which broking houses services you are rendering? Option Religare RELIANCE MONEY Interpretation From the above table 2 it can say that Religare is a leading broking than the RELIANCE MONEY. It gets the 67 per cent confidence of the respondents on the other hand RELIANCE MONEY gets 33 per cent confidence of the respondents. Response 67 33

74

80
75

Table 4 : Do you think that those investment companies provide always benefit to investor Option Yes No Response 92 08

Interpretation The table 3 refers that 92 per cent respondents have view that the investment companies provides always benefit to their investors and rest of 08 per cent are not agree with the argument.

76

Fig.

77

Table 5 : Preferable financial instrument in city ALLAHABAD. Investment Options Shares Debenture Mutual funds Insurance Govt. Bond Bank Deposit Post office Real Estate %age of Respondents 21 10 10 14 13 18 10 04

Interpretation The above table shows the preference of different investors in different financial instrument without any constraints. According to table 4, Bank deposit is easy and suitable option for every type of investors, it counted 18 per cent confidence of the investors. Insurance got 14 per cent, than Share is gained 21 percent, 10 percent respondent have confidence with Post Office investment, Mutual funds got 10 per cent, than 13 per cent investors had confidence about the government bonds. Debenture got 10 per cent than Real Estate had a very weak position i.e. 04 per cent.
78

79

25
80

Table 6 : Different type of investor in city ALLAHABAD. People Aware Risk Taker Risk Averse Response in %age 48 52

Interpretation From the above table 3 it is clear that the 48 per cent investors are Risk Taker on the other hand 52 per cent are Risk Averse. So it is clear that the risk takers are less than the risk averse. Usually the small investors are not in the position to take large risk with their investment because their income is not allowing them to do this.

81

53
82

Table 7 : Does any person in your house take interest to invest his/her money in share market. Options Yes No %age of Respondents 57 43

Interpretation In the above table 7 the 57 per cent respondents are provide positive consent on this and 43 per cent are response negatively on this topic.

83

Fig. 7

84

Table 8 : What kind of franchisee do you prefer? Category RELIANCE MONEY Religare None of these Response 26 50 24

Interpretation 26 per cent respondents providing there consent in the favour of RELIANCE MONEY, 50 per cent respondents provide there consent with the Religare on the other hand rest 24 per cent respondents are looking for another broking house, concluded from the above mentioned table.

85

60
86

Table 9 : Major cause behind the entertaining the broking services. Option Safety of Investment Maximum Return Ease in Liquidity Minimum Risk Interpretation From the above table 9 it is concluded that 06 per cent respondents are entertaining the services of broking house for the safety of investment, 42 per cent are entertaining for the maximizing the return on the investment, 28 per cent have view that liquidity of investment is easy and rest 24 per cent have opinion that with the help of professional management broking houses minimizing the risk with the investment. Response 06 42 28 24

87

F
45
88

Table 10 : Are you a broker? Option Yes No Response 08 92

Interpretation 08 per cent respondents response positively that they are broker on the other hand rest of 92 per cent are response negatively as per table 10.

89

90

Table 11 : If you want to provide a franchisee to your friend who is about to be broker, what kinds of franchisee you would like to provide him. Option RELIANCE MONEY Religare None of these Response 24 46 30

INTERPRETATION The respondents are looking for different broking houses as per there requirement. In the response the above question the 24 per cent people are response in the favour of RELIANCE MONEY, 46 per cent are responding in the favour of Religare and rest of 30 per cent looking for another broking houses.

91

F ig

92

Table 12 : For opening broking house, you have to deposit few amount to take a new franchisee. In this way, what kind of franchisee do you prefer? Option RELIANCE MONEY Religare None of these Interpretation From the above table it is concluded that 23 per cent respondents are looking for RELIANCE MONEY, 47 per cent are looking for the Religare and rest of 30 per cent are looking for any other broking house. Response 23 47 30

93

F ig . n
94

Table 13 : Different age group in ALLAHABAD city. Option 20-30 30-50 50-60 Above 60 Interpretation Table 13 shows that the maximum respondents are belong to the 20-30 age group i.e. 40 per cent than 30 per cent are belongs to 30-50 age group than 22 per cent respondents are belongs to 50-60 and rest 08 per cent belongs to above 60 age group. Response 40 30 22 08

95

45
96

Table 14 : In which income class do you belongs. Option High Class Middle Class Lower Class Response 26 54 20

Interpretation Table 14 refers that the maximum respondents are belongs to middle class of as per there income i.e. 54 per cent, 26 per cent respondents are belongs to High Class as per their income and rest of 20 per cent belongs to the lower class.

97

60
98

Table 14 (a) : Annual income of your family. Option 2 3 lac. 3 5 lac. Above 6 lac. Interpretation The table 14 (a) the largest no. of annual income is belong to 3-5 lac. i.e. 47 per cent than 29 per cent respondents are belongs to the above 6 lac. category and rest of the 24 per cent are belongs to the 24 per cent. Response 24 47 29

99

50
100

Table 15 : Average age of you family? Option 17-20 20-25 20-30 Above 30 Response 21 29 24 26

Interpretation Table 15 shows that 29 per cent respondents are belongs to 17-20 category of average age group, 29 per cent respondents are belongs to 20-25 category of average age group, 24 per cent respondents are belongs to 25-30 category of average age group and rest 26 per cent respondents are belongs to above 30category of average age group,

101

35
102

FINDINGS
1. Most of the customers are not much aware about RELIANCE

MONEY Pvt. Ltd.

2. Both companies are wide spread in the most of the cities. 3. Both companies have sufficient branches in different cities. 4.

Most of the people think that Religare is more reliable than RELIANCE MONEY due to running since a long period.

103

CONCLUSION
From the above discussion it can be concluded that : The maximum respondents are looking to invest there saving in the share market.

The awareness about the RELIANCE MONEY is slightly low than the other broking houses.

Yet the respondents have not enough confidence with the RELIANCE MONEY.

The maximum no. of respondents of the survey have faith that broking hoses always provide benefit to the investors. The maximum investor are looking to invest there savings in the share market.

Maximum no. of respondents are risk averse in ALLAHABAD city.

In this fast moving ear more than 50 per cent people are looking to invest their money in the shares.

104

SUGGESTIONS
1. The security for brokerage house should reduce so that all the

broker might prefer to RELIANCE MONEY.

2. The brokerage charge should be reduced by the company. 3. The advertisement must be done at different places in

different cities.

105

BIBLIOGRAPHY
Khatri, D.K. (2006). Investment Management and Security Analysis: Text and Cases, Chapter 8, p. 210, Macmillan India Ltd. Khan, Y.M (2004). Mutual Funds. Financial Management Kothari, C.R. (2006). Research Methodology : Methods & Techniques. Publishers. WEB SITES www.mutualfundindia.com www.kasecurity.com www.indiafinanceinvestmentguide.com www.business masofindia.com 2nd Edition. New Age International

106

QUESTIONNAIRE
COMPARATIVE STUDY BETWEEN RALIGARE AND RELIANCE MONEY BROKING HOUSES Dear Respondent, The study on the above topic is being done as a part of our MBA summer training project. You are requested to fill up the following questionnaires, the outcome of which will be used for academic purposes only. May you do the needful and help us in our Endeavour. Thanks

RESERCHER PERSONAL DETAILS

Name : . Age & Sex: .. Address : ..

Q1. Do you make investment in share market? Ans. (a) Yes (b) No

Q2. Are you known about the Religare and Likshmishree broking houses? Ans. (a) Religare (b) Liskhmishree (c) Both

Q3. Which broking houses services you are rendering? Ans. (a) Religare (b) Liskhmishree

Q4. Do you think that those investment companies provide always benefit to investor Ans. (a) Yes (b) No
107

Q5. Preferable financial instrument in city ALLAHABAD.

Ans. (a) Shares (d) Insurance (g) Post office

(b) Debenture (e) Govt. Bond (h) Real Estate

(c) Mutual funds (f) Bank Deposit (i) All above mentioned

Q6. Different type of investor in city ALLAHABAD. Ans. (a) Risk taker (b) Risk averse

Q7. Does any person in your house, take interest to invest his money in share market Ans. (a) Yes (b) No

Q8. What kind of franchisee do you prefer? Ans. (a) RELIANCE MONEY of these (b) Religare (c) None

Q9. Major cause behind the entertaining the broking services. Ans. (a) Safety of investment (c) ease in liquidity Q10. Are you broker? Ans. (a) Yes (b) No (b) maximum return (d) minimum risk

Q11. If you want to provide a franchisee to your friend who is about to be a broker, what kinds of franchisee you wild like to provide him Ans. (a) RELIANCE MONEY of these (b) Religare (c) None

Q12. For opening a broking house, you have to deposit few amount to take a new franchisee. In this way, what kind of franchisee do you prefer. Ans. (a) RELIANCE MONEY these (b) Religare (c) None of

108

Q13. Different age Group in city ALLAHABAD. Ans. (a) 20-30 (b) 30-50 (c) 50-60 (d) Above 60

Q14. In which income class do you belong. Ans. (a) High Class (b) Middle Class (c) Lower Class

Q14 (a). What is annual income of your family? Ans. (a) 2-3 lakh (b) 3-5 lakh (3) Above 5 lakh

Q15. What is average age of you family? Ans. (a) 17-20 (b) 20-25 (c) 25-03 (d) Above 30

Thanks for your corporation in filling up the Questionnaires.

VIPIN TIWARI 3rd Sem. MBA (08-10) Institute of Management Science, SHEPA, ALLAHABAD

109

Chapter -1

Industry Profile

110

Chapter -2

Company Profile

111

Chapter -3

Research Methodology

112

Chapter - 4

Analysis of Data

113

Chapter -5

Findings

114

PART I

115

Part II Project Report on

COMPARATIVE STUDY BETWEEN RELIANCE MONEY & RELIGARE

116