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Presentation

ON
“Comparative Study of Online
Trading
For Religare Securities & Motilal
Oswal”
Presented By
R devil
6devil 66
MBA
2008-10
ABSTRACT
• As my target customer are STUDENTS, CORPORATE
PEOPLES, BUSINESS MENS
• I have collected the information and data on the basis
of survey.
• Firstly let us go through what exactly a broking firm.
• There are more than 25 broking firm in Pune
• Major players dominating the Indian market today are
India infoline ltd, Religare, Motilal Oswal, and ICICI.
• The broking firm was growing rapidly and it has
already made its presence felt in all parts of the
world.
• As India is considered as a global hub for all business
• Millions of people who deal with small and medium
scale business, educational institutes and
professionals.
• Broking Industry is facing a slowdown in the last 13
months
INTRODUCTION
Religare Securities Ltd.
 Religare set up & has grown up institutional
brokerage house to full-fledged financial intermediary
 The company has significant presence in
institutional & retail broking
 It offers wide range of services including
equities, commodities etc
 Religare retail network spreads across more
than 900 locations across more than 350 cities and
towns in India.
 Religare has membership of the National Stock
Exchange (NSE) Bombay Stock Exchange (BSE)
 The company is also a member of National
Securities Depository Limited (NSDL) & Central
Depository Services India Limited (CDSL).

 BSE (BOMBAY STOCK EXCHANGE)
 BSE has carved out a unique position
among the stock exchange
 It is located in Mumbai
 It is one of the oldest stock exchange

 NSE National Stock Exchange)


 The National Stock Exchange (NSE)
located in Mumbai is India’s first dept
market
 It was recently accorded recognition as
a stock exchange by the department of
company affairs
 NSE was promoted by leading financial
institution
Motilal Oswal Securities Ltd.
 Motilal Oswal Securities Ltd. was
founded in 1987 as a small sub-
broking unit
 Technology has enabled us to
blossom into an almost 2000
member team.
 It is headquartered in Mumbai
and as of December 31st, 2008
 network spread over 512 cities
and towns comprising 1,428 Business
Locations operated by our Business
Partners and us.

OBJECTIVE OF THE
RESEARCH

• To make people aware about market.


• To review the concept, price &
analysis
• To show the advantage &
disadvantage of stock market.
• To study and analyze the major
competitors to Religare & Motilal
Oswal
• To study and analyze the problem
faced by Religare & Motilal Oswal
PROBLEM DESCRIPTION &
JUSTIFICATION OF STUDY
• Are people really getting benefits
from the various predictions being
made by the analysts?
• Lots of time & money is being waste
of the people who involve
themselves in the stock market
DATABASE
• My target is to make people aware of
stock market & to tell advantages &
disadvantages of the stock market
to the people.
• There are many competitors in Pune
market.
• . I will be collecting the information
and data from this information
centres
• I will also collect data from the
secondary data, like Magazines,
METHODOLOGY

• I am going to collect data by using


two following methods:
 *Primary data collection:
 This I can collect by focus
interview and personal interview.
 *Secondary data collection:
 This will be collecting from
already existing data like from
Internet, official sites of Company,
Financial news papers and TV also.
FINANCIAL SERVICE
INDUSTRY
• The introduction of new products and
services
• The Indian financial sector is charting
an impressive growth path.
• According to global research data from
Macquarie, India is the most preferred
stock market
• The market is also expected to undergo
a structural transformation with
organized players increasing their
market share.
• The government has permitted liquidity
support for non-banking finance
MARKET SEGMENTATION
• Market segmentation is different part of
market consisting customers
• In Religare securities & Motilal Oswal use
the market segmentation strategies to
target the customers.
• Firstly they target,all business men who are
interested in long term and short term
investment
• our plan we have segmented our market
into medium and small scale business
• We have chosen this segment because they
are the fastest growing sector in India.
PROGRESS TILL DUE DATE

• I have decides to collect the data of 500 customers


• The instrument that I have used for collecting data is I have
prepared a questionnaire
 1.Do you have a Demat Account?
 2.If Yes? In which company you are having an Demat
Account?
 3.How much margin money they are charging?
 4.They are providing you Bank Account?
 5.They are providing you softwares ?
 6.If Yes? How much they are charging for the
softwares or free of cost?
 7. What kind of facilities are you getting?
 8.What are the main facilities which attract you as
customers towards religare securities ltd. Or Motilal
Oswal?
 9. Are you aware from what the share market is?
 10. Who are the major competitors of broking firm?
LITERATURE REVIEW
• The paper “A Comparative study of
online trading for Religare Securities
& Motilal Oswal Securities”
• Both the public & the private
companies offer a wider choice in
terms of products & services.
• To begin with a consumer would decide
on what he or she would like to
consume.
• At this point a consumer priorities those
items that provide more satisfaction.
• This facts to a decision on which
commodities are required the most
• Lots of time & money is being waste of the
people who involve themselves in the
stock market
 ANALYSIS
 Not having enough knowledge about
share market
 Once people involve in it they play like
gambling
 Difficult to everyone to go through lots
of technology thing involved on it.
 Difficult to aware about market
knowledge to everyone.
 KEY PLAYERS
 This section provides an overview of
some of the key players in the industry like:-
India Infoline Ltd., Angel Broking, Religare
RESEARCH METHODOLOGY
 Area of research :- Pune
 Sample Design :- Random Sampling
 Sample Size :- 500 Customers
 Research Instrument:- Questionnaires
 Primary Data:
 Personal Interview of Customers
 Questionnaires
 Interview of RM of Religare, Pune branch
 Secondary Data:
 Company literature
 Internet
 Reference books of Service Marketing & Retail
Management
 Magazines And Journals

STOCK MARKET

• Fund raising by India Inc through


initial public offers (IPOs)
• Significantly, fund mobilization
during the first quarter of 2008 was
the second highest for a quarter in
the Indian capital's history.
• The Indian stock market has slowed
down due to the global economic
turmoil.
• By Thomson Reuters study, India Inc
is likely to raise four times
2CETT
• CUSTOMER
 *Religare Securities had around 3.20
lakh clients
 *Motilal Oswal had 3 Lakh clients
 *Religare retail network spreads across
more than 900 locations across more than
300 cities and towns in India.More than
4200 sub-brokers.
 *Motilal Oswal had a network spread
over 512 cities and towns comprising 1,428
Business Locations operated by our
Business Partners and us.
 *Both are having all type of customers
like High Net worth Individuals, Retailers
• ENVIRONMENT
 Company is working in very
dynamic industry.
 There is uncertainty about future
growth of share market.
 Company is facing very tough
competition because large numbers
of players are present in broking
industry.
 Because of economic slowdown
companies revenue has decreased
slightly

• TECHNOLOGY
 Customer gets login id through
which they can trade online.
 Company is using MS Outlook for
Sending and receiving mails.
 Both the companies are giving
all the customers trading software
 Religare is charging less amount
than Motilal Oswal for softwares

• TERMINOLOGY
 Sensex
 It is an index that represents the direction of the
companies
 It comprises of 30 companies.
 Nifty
 It is the Sensex's counterpart on the National Stock
Exchange
 Nifty comprises of 50 companies and hence is more
broad- based than the Sensex.
 Bull
 A particular kind of investor who purchases shares in
the expectation
 She/he sells her/his stock at a higher price and pockets
the profit.
 The bulls buy at a lower price and sell at a higher
price.
 Bear
 Bull's counterpart is the bear.
 A bear sells stocks first that s/he owns or borrows
from, say a friend
 Then purchases the same quantity of shares at a lower
price.
 Brokerage
 Brokerage is the commission
charged by the broker for
purchase/sale transaction
 Scrip symbol
 For NSE trading scrips are
represented by their symbols
depending upon their names.
PEST ANALYSIS MODEL
 POLITICAL ANALYSIS
 Tax Policies: - Tax policies are one of the
important issues in forming the brokerage firm.
 If the taxes charged by the government are high
then the company has to raise their opening charges to
recover their money.
 ECONOMIC ANALYSIS
 Economic Growth:- As the economy grows people
tend to invest
 As there is slowdown in the economy people are
not interested to invest.
 Interest Rates:- In this trading market interest
rate is very important.
 Each and every company in this industry earns
from the brokerage the charge for the transactions

 SOCIAL ANALYSIS
 Consumer Behavior:- This industry total
depends upon the behavior of the customer
 Industry depend upon the brokerage they
earn from the trade the customer does.
 If the customer trade regularly the company
earns more profit.
 Income:- Income of the people is also
important
 the income of the people in the country is
more than people tend to invest more.
 TECHNOLOGY ANALYSIS
 Information Technology:-The Company uses
different Software’s in their work.
 Company that provides the software in NSE
NEAT DEAL & ODIN for BOLT DEAL in BSE.
 Relationship Management Service (RMS) is
used for Accounting and Customer Relationship
Management (CRM).
PORTERS FIVE FORCE
MODEL
• Barriers to Entry.
 SEBI Regulations: - Security Exchange Board of
India had many rules and regulation to deal in Brokerages
Firms.
 So before entering in this type of Business the Firm
has to follow all the rules and regulations.
 Capital Investment: - To enter in this type of firm it
requires a lot of capital investment.
 The minimum capital investment is 2Crore.So it is
very hard to collect a lot of investment.
 Licensing: - It is very difficult to get a license from
the Government to run up this type of firms.
 Product Differentiation: - The important barrier is
the differentiation of the products the company is going to
produce.
 For Eg. As Angle is providing a free ICICI Banks A/C
with ZERO Balance with the opening of Demat A/C with
Angle
• Intensity of Rivalry among the
Firms:
 Each and every firm in this
industry try to gain advantage over
its competitors.
 In this industry significant
market share is enjoyed by many
small players.
• Threat of Substitutes:
 Substitute affects the level of
competition.
 The substitutes for this type of
firm is the Fixed Deposits kept in the
KEY COST ASSOCISTED
• Cost is the value of money that has been used up to produce
something
• In business, the cost may be one of acquisition
• in which case the amount of money expended to acquire it is
counted as cost.
• Usually, the price also includes a mark-up for profit over the cost
of production.
• The costs associated with Broking Firm are as follows
 Professional fees:
 Professional fees includes taxes, transactions cost and
managements cost.
 They also have to keep a close eye on satisfying the
employees as if new business is established
 Technology costs:
 Expenditure associated with acquisition or
development, and maintenance of technology assets
 For a new company to start need constantly updating
 Administrative costs:
 Expense incurred in controlling and
directing an organization
 Administrative costs are related to
the organization as a whole as opposed to
expenses related to individual departments.

 Sales and marketing costs:


 Marketing cost analysis is a detailed
examination of the costs incurred in the
organization
 Administration of the sales and
marketing function and its impact on sales
volume.
 A marketing cost analysis is a
detailed study of a company’s marketing
GENERIC COMPETITIVE
STRATEGIES
• These are the strategies which analyses firm’s
success in an industry in which it is operating
• Its position in an industry & its attractiveness of
products.
• There are three generic competitive strategies
which are:
 Cost Leadership Strategies:-
 Firm gains cost leadership in an
industry when its cost of product is lower than
its competitors.
 And at that low price strategy
company gains profits & competitors bound to
make losses.
 RELIGARE SECURITIES
 Cost of Demat account Rs. 555/- only
 MOTILAL OSWAL LTD:
 Cost of Demat account Rs. 750/- only & annual
charges are applicable.
 Differentiation:-
 A differentiation strategy calls for the
development of a product or service that offers unique
attributes
 The value added by the uniqueness of the
product may allow the firm to charge a premium price for it.
 This differentiation strategy of product allow to
perceive the product as different from that of competitors.
 Focus Strategy:-
 It shows specific segment, special group of
customers, special geographic area, or particular product.
 Religare:- This company concentrate on demat
account
 charging less for commodity account which help
the people to save
 They try to attract those customers which are
interested not only in shares but also in commodity.
 Motilal Oswal & Religare both provide free sms
services.
Result and Analysis
• For completing this research researcher
has gathered the information mainly
from the primary source.
• I have decides to collect the data of 500
customers who want to play or who
want to invest
• I have collected data base of 300
customers
• The instrument that I have used for
collecting data is I have prepared a
questionnaire
• As per the questionnaire, researcher
got many valuable data.
• Numbers of customers who are
having the Demat Account?
 *Does Not -30%
 *Does -70%


 PERCEPTUAL MAPING


• Which Broking Firm they prefer most?

• Sex Ratio
 Male 220(73.33%)
 Female 80 (26.67%)

• Age Group


RECOMMENDATIONS &
SUGGESTIONS
• Religare has to concentrate more on facilities area as
they are a little weak in that area if they improve
that they will get more customers & they will get
more transactions.
• Motilal has to work more on customer satisfaction so
that they can reach number one position in India.
• Both the company should concentrate more on
Technology cost, administrative cost, sales &
marketing cost.
• Motilal company should concentrate on its brokerage,
AMC, Facilities as people are least satisfied with it
while Religare should concentrate on the AMC & the
facilities.
• For promotional offers, company should go for giving
free of cost for commodity account as many of the
other competitors are doing
• Religare need to adopt technology so that time
lagging and accuracy can improve and make to the