CUSTOMER RELATIONSHIP MANAGEMENT

(Summer Internship Project)

May-June 2009 Angel Broking Ltd.

Institute of Business Management & esearch

Su!mitte" !y# - Mohit M$ Bhen"ar%ar

Preface
&he Summer program offere" !y the IBM 'o((ege) is an en(ightening course for those *ho are *ishing to master their Business a"ministration s%i((s) *ith their %no*(e"ge$ &his is an uni+ue course *hich is the co((a!oration of MB,$ It not on(y "e-e(opes your management ta(ent !ut a(so "e-e(op your technica( s%i(($ It imparts the necessary theoretica( %no*(e"ge a!out the fie(" !ut a(so pro-i"es an opportunity to practica((y e.perience the app(ication of the !usiness a"ministration fun"amenta(s in the corporate as *e(( as the noncorporate sector$ &he Summer &raining at the en" of secon" semesters is an i"ea( opportunity for the stu"ent to ha-e a first han" e.perience *ith the "ifferent functions of the In"ustria(/ 'orporate sector$ &his faci(itates the un"erstan"ing an" re(ate" (earning to the stu"ents) *hich might !e critica( to (earn the su!ject !etter$ I ha-e un"ergone my summer training at ,nge( Bro%ing 0imite"$ 1ere I got to the practica( %no*(e"ge of 2+uity Mar%ets an" 3eri-ati-es Mar%et$ I enjoye" the (earning of the su!ject an" its functions an" main(y the e.citement of sitting in a "ea(ing room an" practica((y -ie*ing the tra"es ta%ing p(ace on the share mar%et screen$ I *as una*are a!out the ro(e of e.changes an" "epositories in the secon"ary mar%et$ 1ere I rea((y got practica( %no*(e"ge a!out the ro(e of S2BI) 4S2) an" BS2 etc$ in the secon"ary mar%et$ 4o* I am a*are a!out the !uying an" se((ing system in the secon"ary mar%et through !ro%ing firm or su!-!ro%er$ I am -ery much than%fu( to Mr. ick! T"o#a$) Branch & Product Head) main !ranch Maha(aya comp(e. '$ 5$ oa") ,hme"a!a"$ I therefore ha-e p(easure to present my training report) *hich) I hope as per the curricu(um re+uirements$

AC%NOLE&GEMENTS
6&here is no such thing as a se(f ma"e man) *e a(( are ma"e up thousan"s of others7 8 5eorge ,"ams$ I am in"e!te" to my facu(ty) the 9acu(ty of Socia( :or% for pro-i"ing the stu"ents an opportunity to e.perience the practica( *or%ing of the %no*(e"ge imparte" to us theoretica((y$ I am gratefu( to ,nge( Bro%ing 0imite" for a((o*ing me to un"erta%e my summer training in the organi;ation$ &o mention) I *ou(" (i%e to e.ten" my gratitu"e to*ar"sMr$ 1arshit Bha-sar (Business 3e-e(opment 1ea") Mr$ <ira( =apa"ia (Business 3e-e(opment Manager) &hey he(pe" me "uring my entire training program$ I *ou(" a(so (i%e to than% Mr$ Jic%y &homas an" Mrs$ Pan%ti shah *ho faci(itate" me in my practica( (earning$

Gli#'$e to CRM ( )
Before *e !egin to e.amine the conceptua( foun"ations of ' M) it *i(( !e usefu( to "efine) *hat is ' M> , narro* perspecti-e of customer re(ationship management is "ata!ase mar%eting emphasi;ing the promotiona( aspects of mar%eting (in%e" to "ata!ase efforts$ ,nother narro*) yet re(e-ant) -ie*point is to consi"er ' M on(y as customer retention in *hich a -ariety of after mar%eting tactics is use" for customer !on"ing or staying in touch after the sa(e is ma"e$ Shani an" 'ha(asani "efine re(ationship mar%eting as 6an integrate" effort to i"entify) maintain) an" !ui(" up a net*or% *ith in"i-i"ua(s consumers an" to continuous(y strengthen the net*or% for mutua( !enefit of !oth si"es) through interacti-e) in"i-i"ua(i;e" an" -a(ue-a""e" contacts o-er a perio" of time7$ &he core theme of a(( ' M an" re(ationship mar%eting perspecti-es is its focus on co-

operati-e an" co((a!orati-e re(ationships !et*een the firm an" its customers) an"/or other mar%eting actors$ ' M is !ase" on the premise that) !y ha-ing a !etter un"erstan"ing of the customers? nee"s an" "esires *e can %eep them (onger an" se(( more to them$ 5ro*th Strategies Internationa( (5SI) performe" a statistica( ana(ysis of 'ustomer satisfaction "ata encompassing the fin"ings of o-er @)000A customer sur-eys con"ucte" !y ,nge( Bro%ing 0t"$ ' M (customer re(ationship management) is an information in"ustry term for metho"o(ogies) soft*are) an" usua((y Internet capa!i(ities that he(p an enterprise manage customer re(ationships in an organi;e" *ay$ 9or e.amp(e) an enterprise might !ui("
a "ata!ase a!out its customers that "escri!e" re(ationships in sufficient "etai( so that management) sa(espeop(e) peop(e pro-i"ing ser-ice) an" perhaps the customer "irect(y cou(" access information) match customer nee"s *ith pro"uct p(ans an" offerings) remin" customers of ser-ice re+uirements) %no* *hat other pro"ucts a customer ha" purchase") an" so forth$

&he essence of the information techno(ogy re-o(ution an") in particu(ar) the :or(" :i"e :e! is the opportunity to !ui(" !etter re(ationships *ith customers than has !een pre-ious(y possi!(e in the off(ine *or("$ By com!ining the a!i(ities to respon" "irect(y to customer re+uests an" to pro-i"e the customer *ith a high(y interacti-e) customi;e" e.perience) companies ha-e a greater a!i(ity to"ay to esta!(ish) nurture) an" sustain (ong-term customer re(ationships than e-er !efore$ &he u(timate goa( is to transform these re(ationships into greater profita!i(ity !y increasing repeat purchase rates an" re"ucing customer ac+uisition costs$ In"ee") this re-o(ution in customer re(ationship management or ' M$ 1 as it is ca((e") has !een referre" to as the ne* 6mantra7 of mar%eting$ 2 'ompanies (i%e Sie!e() 2$piphany) Brac(e) Broa"-ision) 4et Perceptions) =ana an" others ha-e fi((e" this ' M space *ith pro"ucts that "o e-erything from trac% customer !eha-ior on the :e! to pre"icting their future mo-es to sen"ing "irect emai( communications$ &his has create" a *or("*i"e mar%et for ' M pro"ucts an" ser-ices of CDE !i((ion in F999 an" *hich is forecaste" !y I3' to gro* to CF2G !i((ion !y 200E$3 &he nee" to !etter un"erstan" customer !eha-ior an" focus on those customers *ho can "e(i-er (ong-term profits has change" ho* mar%eters -ie* the *or("$

&ra"itiona((y) mar%eters ha-e !een traine" to ac+uire customers) either ne* ones *ho ha-e not !ought the pro"uct category !efore or those *ho are current(y competitors? customers$ &his has re+uire" hea-y "oses of mass a"-ertising an" price-oriente" promotions to customers an" channe( mem!ers$ &o"ay) the tone of the con-ersation has change" from customer ac+uisition to retention$ &his re+uires a "ifferent min"set an" a D "ifferent an" ne* set of too(s$ , goo" thought e.periment for an e.ecuti-e au"ience is to as% them ho* much they spen" an"/or focus on ac+uisition -ersus retention acti-ities$ :hi(e it is "ifficu(t to perfect(y "istinguish the t*o acti-ities from each other) the ans*er is usua((y that ac+uisition "ominates retention$

According to one ind*$tr! +ie,- CRM con$i$t$ of( 1e(ping an enterprise to ena!(e its mar%eting "epartments to i"entify an" target their !est customers)
manage mar%eting campaigns *ith c(ear goa(s an" o!jecti-es) an" generate +ua(ity (ea"s for the sa(es team$

,ssisting the organi;ation to impro-e te(esa(es) account) an" sa(es management !y optimi;ing information share" !y mu(tip(e emp(oyees) an" stream(ining e.isting processes (for e.amp(e) ta%ing or"ers using mo!i(e "e-ices)

,((o*ing the formation of in"i-i"ua(i;e" re(ationships *ith customers) *ith the aimof impro-ing customer satisfaction an" ma.imi;ing profitsH i"entifying the most profita!(e customers an" pro-i"ing them the highest (e-e( of ser-ice$

Pro-i"ing emp(oyees *ith the information an" processes necessary to %no* their customers) un"erstan"
their nee"s) an" effecti-e(y !ui(" re(ationships !et*een the company) its customer !ase) an" "istri!ution partners$

' M--'ustomer e(ationship Management--has entere" the mainstream$ 3espite the uncertainty of the economy) ' M is !eing thrust into corporate !u"gets an" ta(%e" a!out as a critica( initiati-e !y hun"re"s of 9ortune F)000 an" tens of thousan"s of other companies$ It has gone from !eing an important e"ge in the !usiness *or(" to a necessary too( for sur-i-a($ &he notion of the customer as %ing or +ueen is once again the ru(e$ 1o* you treat this is a mission-critica( !usiness issue$ But) *hat is ' M an" ho* "oes it change the *ay companies "o !usiness> &he changes in the *or(" ha-e !een so "ynamic an" so "ramatic
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that the path is not necessari(y a(( that o!-ious$ 1o* ' M impacts that !usiness path is a continuing source of "e!ate in the *or(" of corporate management$ Managing re(ationships *ith customers has !ecome a critica( organi;ationa( competency$ 5et *inning strategies for ac+uiring an" retaining customers !y (e-eraging the (atest a"-ance" techno(ogies$ &his course *i(( teach you ho* to se(ect the right too(s for your !usiness-- so it can gro* to"ay--an" on into the future$ 0agging means (ost customers) *hich means "amage to the !ottom (ine$ But ho* "o you not (ag *hen customers are mo-ing (ightning fast to "eman" constant changes in the spee" to comp(ete their transactions> 1o* "o you %eep your customers *hen the mo-e to another company is nothing more than a mouse c(ic% an" a minute a*ay> ' M is the ans*er$ 'ustomer e(ationship Management) a strategy that (e-erages -ery a"-ance" techno(ogies is the *ay to cut to the 2Fst 'entury !usiness chase$

Hi$tor! of CRM 'ustomer e(ationship Management (' M) is one of those magnificent concepts that s*ept the !usiness *or(" in the F990?s *ith the promise of fore-er changing the *ay !usinesses sma(( an" (arge interacte" *ith their customer !ases$ In the short term) ho*e-er) it pro-e" to !e an un*ie("y process that *as !etter in theory than in practice for a -ariety of reasons$ 9irst among these *as that it *as simp(y so "ifficu(t an" e.pensi-e to trac% an" %eep the high -o(ume of recor"s nee"e" accurate(y an" constant(y up"ate them$ In the (ast se-era( years) ho*e-er) ne*er soft*are systems an" a"-ance" trac%ing features ha-e -ast(y impro-e" ' M capa!i(ities an" the rea( promise of ' M is !ecoming a rea(ity$ ,s the price of ne*er) more customi;a!(e Internet so(utions ha-e hit the mar%etp(aceH competition has "ri-en the prices "o*n so that e-en re(ati-e(y sma(( !usinesses are reaping the !enefits of some custom ' M programs$
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In t"e .eginning/ &he F9I0?s sa* the emergence of "ata!ase mar%eting) *hich *as simp(y a catch phrase to "efine the practice of setting up customer ser-ice groups to spea% in"i-i"ua((y to a(( of a company?s customers$ In the case of (arger) %ey c(ients it *as a -a(ua!(e too( for %eeping the (ines of communication open an" tai(oring ser-ice to the c(ients nee"s$ In the case of sma((er c(ients) ho*e-er) it ten"e" to pro-i"e repetiti-e) sur-ey-(i%e information that c(uttere" "ata!ases an" "i"n?t pro-i"e much insight$ ,s companies !egan trac%ing "ata!ase information) they rea(i;e" that the !are !ones *ere a(( that *as nee"e" in most cases# *hat they !uy regu(ar(y) *hat they spen") *hat they "o$ Ad+ance$ in t"e 01123$ In the F990?s companies !egan to impro-e on 'ustomer e(ationship Management !y ma%ing it more of a t*o-*ay street$ Instea" of simp(y gathering "ata for their o*n use) they !egan gi-ing !ac% to their customers not on(y in terms of the o!-ious goa( of impro-e" customer ser-ice) !ut in incenti-es) gifts an" other per%s for customer (oya(ty$ &his *as the !eginning of the no* fami(iar fre+uent f(yer programs) !onus points on cre"it car"s an" a host of other resources that are !ase" on ' M trac%ing DDDD customer acti-ity an" spen"ing patterns$ ' M *as no* !eing use" as a *ay to increase sa(es passi-e(y as *e(( as through acti-e impro-ement of customer ser-ice$ Tr*e CRM co#e$ of age ea( 'ustomer e(ationship Management as it?s thought of to"ay rea((y !egan in earnest in the ear(y years of this century$ ,s soft*are companies !egan re(easing ne*er) more a"-ance" so(utions that *ere customi;a!(e across in"ustries) it !ecame feasi!(e to rea((y use the information in a "ynamic *ay$ Instea" of fee"ing information into a static "ata!ase for future reference) ' M !ecame a *ay to continuous(y up"ate un"erstan"ing of customer nee"s an" !eha-ior$ Branching of information) su!-fo("ers) an" custom tai(ore" features ena!(e" companies to !rea% "o*n information into sma((er su!sets so that they cou(" e-a(uate not on(y concrete statistics) !ut
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information on the moti-ation an" reactions of customers$ &he Internet pro-i"e" a huge !oon to the "e-e(opment of these huge "ata!ases !y ena!(ing offsite information storage) *here !efore companies ha" "ifficu(ty supporting the enormous amounts of information$ &he Internet pro-i"e" ne* possi!i(ities an" ' M too% off as pro-i"ers !egan mo-ing to*ar" Internet so(utions$ :ith the increase" f(ui"ity of these programs came a (ess rigi" re(ationship !et*een sa(es) customer ser-ice an" mar%eting$ ' M ena!(e" the "e-e(opment of ne* strategies for more cooperati-e *or% !et*een these "ifferent "i-isions through share" information an" un"erstan"ing) (ea"ing to increase" customer satisfaction from or"er to en" pro"uct$ &o"ay) ' M is sti(( uti(i;e" most fre+uent(y !y companies that re(y hea-i(y on t*o "istinct features# customer ser-ice or techno(ogy$ &he three sectors of !usiness that re(y most hea-i(y on ' M -- an" use it to great a"-antage -- are financia( ser-ices) a -ariety of high tech corporations an" the te(ecommunications in"ustry$ &he financia( ser-ices in"ustry in particu(ar trac%s the (e-e( of c(ient satisfaction an" *hat customers are (oo%ing for in terms of changes an" persona(i;e" features$ &hey a(so trac% changes in in-estment ha!its an" spen"ing patterns as the economy shifts$ Soft*are specific to the in"ustry can gi-e financia( ser-ice pro-i"ers tru(y impressi-e fee"!ac% in these areas$ In recent years ho*e-er) se-era( factors ha-e contri!ute" to the rapi" "e-e(opment an" e-o(ution of ' M$ &hese inc(u"e# F$ The growing de-intermediation process in many in"ustries "ue to the a"-ent of sophisticate" computer an" te(ecommunication techno(ogies that a((o* pro"ucers to "irect(y interact *ith en"-customers$ 9or e.amp(e) in many in"ustries such as air(ines) !an%s insurance) soft*are or househo(" app(iances an" e-en consuma!(es) the "e-interme"iation process is fast changing the nature of mar%eting an" conse+uent(y ma%ing re(ationship mar%eting more popu(ar$ 3ata!ases an" "irect mar%eting too(s gi-e them the means to in"i-i"ua(i;e their mar%eting efforts$ 2$ Advances in information technology, net*or%ing an" manufacturing techno(ogy ha-e he(pe" companies to +uic%(y match competition$ ,s a resu(t pro"uct +ua(ity an" cost are no (onger significant competiti-e a"-antages$

D$ The growth in service economy. Since ser-ices are typica((y pro"uce" an" "e(i-ere" at the same institution) it minimi;es the ro(e of the mi""(emen$ E$ ,nother force "ri-ing the a"option of ' M has !een the total quality movement. :hen companies em!race" &JM it !ecame necessary to in-o(-e customers an" supp(iers in imp(ementing the program at a(( (e-e(s of the -a(ue chain$ &his nee"e" c(ose *or%ing re(ationships *ith the customers$ &hus se-era( companies such as Motoro(a) IBM) 5enera( Motors) Kero.) 9or") &oyota) etc forme" partnering re(ations *ith supp(iers an" customers to practice &JM$ Bther programs such as JI& an" M P a(so ma"e use of inter"epen"ent re(ationships !et*een supp(iers an" customers$ G$ ustomer e!pectations are changing a(most on a "ai(y !asis$ 4e*(y empo*ere" customers) *ho choose ho* to communicate *ith the companies across -arious a-ai(a!(e channe(s$ ,(so no*a"ays consumers e.pect a high "egree of persona(i;ation$ L$ "merging real time) interacti-e channe(s inc(u"ing e-mai() ,&Ms an" ca(( centre that must !e synchroni;e" *ith customer?s non-e(ectronic acti-ities$ &he spee" of !usiness change) re+uiring f(e.i!i(ity an" rapi" a"option to techno(ogies$ @$ In the current era of hyper competition) mar%eters are force" to !e more concerne" *ith customer retention an" customer (oya(ty$ I$ ,s se-era( researches ha-e foun" out retaining customers is less e!pensive an" more sustaina!(e competiti-e a"-antage than ac+uiring ne* ones$ 9$ Bn the supp(y si"e it pays more to "e-e(op c(oser re(ationships *ith a few suppliers than to "e-e(op more -en"ors$ F0$ &he glo#ali$ation of *or(" mar%etp(ace ma%es it necessary to ha-e g(o!a( accountmanagement for the customers$

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&efinition( )
6' M is concerne" *ith creating impro-e" shareho("er -a(ue through the use of customer centric !usiness processes an" the "e-e(opment of appropriate re(ationships *ith consumers$7 I#'le#enting CRM( ' M re+uires an integration of a firmMs resourcesH peop(e) operations an" mar%eting capa!i(ities to "e(i-er a""e" -a(ue to the customers$ ' M shou(" pro-i"e !usinesses an" organi;ations *ith a N$ingle +ie,3 of their customers an" across irrespecti-e of the interacti-e channe( or me"ium through *hich the customer accesses the ser-ice or pro"uct$ 9or e.amp(e) a !usiness (e$g$ hote() customer?s profi(e an" persona( references shou(" !e accessi!(e to the !usiness (or hote() irrespecti-e of channe( i$e$ *hether the customer !oo%s on(ine) ca((s in or *a(%s into any (ocation shou(" not ma%e a "ifference to the ser-ice pro-i"e" !ase" on the persona( profi(e of the !usiness c(ient$ It is ena!(e" through# Information Processes &echno(ogy ,pp(ications , firm that *ants to imp(ement ' M must a(ign itMs !usiness processes cross-functiona((y in the !est possi!(e *ay to a((o* increase" customer focus *ith an aim to "e(i-er a""e" -a(ue to the customer$ To i#'le#ent CRM- t"e follo,ing $te'$ #*$t .e follo,ed( O 3e-e(op a ' M frame*or% O ,(ign current !usiness processes O 3esign ne* cross-functiona( !usiness processes (*here re+uire") O 3e-e(op 9unctiona( Specifications (c(ient-si"e ser-ices) O 3e-e(op &echnica( Specifications

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O Match &echnica( Specifications to a-ai(a!(e techno(ogy (Systems) soft*are) etc) O Pro"uct 'onfiguration O 3ata Migration an" Integration O Staff &raining %e! 4*e$tion$ in t"e fi+e CRM 'roce$$e$ Proce$$ 0( Strateg! &e+elo'#ent Proce$$ :here *e are an" *hat "o *e *ant to achie-e> :ho are the customers that *e *ant an" ho* shou(" *e segment them> Proce$$ 5( 6al*e Creation Proce$$ 1o* shou(" *e "e(i-er -a(ue to our customers> 1o* shou(" *e ma.imi;e the (ifetime -a(ue of the customers *e *ant> Proce$$ 7( T"e M*lti)C"annel Integration Proce$$ :hat are the !est *ays for us to get to customers an" for customers to get to us> :hat "oes the an outstan"ing customer e.perience) "e(i-era!(e at an affor"a!(e cost) (oo% Proce$$ 8( Infor#ation Manage#ent Proce$$ 1o* shou(" *e organise information on customers> 1o* can *e Nrep(icate? the min"Pnee"s of the customer> Proce$$ 9( Perfor#ance A$$e$$#ent Proce$$ 1o* can *e create increase" profits an" shareho("er -a(ue>

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 1o* shou(" *e measure our resu(ts) set stan"ar"s an" impro-e our performance>

C*$to#er Seg#entation( 9or ' M to !e effecti-e) the organi;ation?s customer !ase must !e stratifie" into segments !ase" on commona(ities amongst groups? of in"i-i"ua(s an" customers$ &his a(so re+uires the organi;ation to ha-e strategies to target conso(i"ate" customer segments$ Red*ced Co$t of Ser+ice( a customer re(ationship strategy shou(" re"uce the cost of ser-ice for !oth the organi;ation an" it?s customers an" increase satisfaction (e-e(s$ Ser+ice a$ a differentiator( &he more competiti-e a mar%et !ecomes the more a !usiness *i(( nee" to re(y on its superior pro"uct +ua(ity an" +ua(ity of ser-ice to "ifferentiate itse(f from other !usinesses an" pro-i"ers$ Tie)in3$ o+er ti#e( &he greater the effort a customer spen"s on a re(ationship o-er time) the greater the customer?s sta%e in he(ping to ensure that the re(ationship *or%s an" the more con-enient an" (oya( the customer !ecomes$

Pitfall$ to a+oid(
Many ' M programs fai( for t*o reasons# Lack of $*''orti+e .*$ine$$ 'roce$$e$( Because !usiness processes an" organi;ationa( goa(s are not part of a strategic ' M p(an tie" to organi;ationa( goa(s an" o!jecti-es$ Lack of an enter'ri$e 'er$'ecti+e( 9or e(ationship Mar%eting to !e effecti-e) it re+uires that the organi;ation creates a seam(ess enterprise -ie*$ , (ot of ' M programs fai( !ecause they are assem!(e" *ith "isparate

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components that arenMt "esigne" to *or% together as part of a comp(ete ' M system "esigne" to meet organi;ationa( o!jecti-es$

C*$to#er Relation$"i' Manage#ent Model

CREATE A DATA BASE

ANALYSIS

CUSTOMER SELECTION CUSTOMER TARGETING

RELATIONSHIP MARKETING

PRIVACY ISSUES

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METRICS

C*$to#er Retention Progra#$

FREQUENCY/ LOYALTY PROGRAMS

CUSTOMER SERVICE

CUSTOMIZATION

'QS&BM2 20,&IB4S1IP M,4,52M24& S,&IS9,'&IB4 15 COMMUNITY !UIL ING

REWAR S PROGRAMS

O.:ecti+e of t"e $t*d! of CRM

' M) in its !roa"est sense) means managing a(( interactions an" !usiness *ith customers$ &his inc(u"es) !ut is not (imite" to) impro-ing customer ser-ice$ , goo" ' M program *i(( a((o* a !usiness to ac+uire customers) ser-ice the customer) increase the -a(ue of the customer to the company) retain goo" customers) an" "etermine *hich customers can !e retaine" or gi-en a higher (e-e( of ser-ice$ , goo" ' M program can impro-e customer ser-ice !y faci(itating communication in se-era( *ays# Pro-i"e pro"uct information) pro"uct use information) an" technica( assistance on *e! sites that are accessi!(e 2E hours a "ay) @ "ays a *ee% O I"entify ho* each in"i-i"ua( customer "efines +ua(ity) an" then "esign a ser-ice strategy for each customer !ase" on these in"i-i"ua( re+uirements an" e.pectations$ Pro-i"e a fast mechanism for managing an" sche"u(ing fo((o*-up sa(es ca((s to assess post-purchase cogniti-e "issonance) repurchase pro!a!i(ities) repurchase times) an" repurchase fre+uencies$ Pro-i"e a mechanism to trac% a(( points of contact !et*een a customer an" the company) an" "o it in an integrate" *ay so that a(( sources an" types of

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contact are inc(u"e") an" a(( users of the system see the same -ie* of the customer (re"uces confusion)$ 1e(p to i"entify potentia( pro!(ems +uic%(y) !efore they occur Pro-i"e a user-frien"(y mechanism for registering customer comp(aints (comp(aints that are not registere" *ith the company cannot !e reso(-e") an" are a major source of customer "issatisfaction)$ Pro-i"e a fast mechanism for han"(ing pro!(ems an" comp(aints (comp(aints that are reso(-e" +uic%(y can increase customer satisfaction)$ Pro-i"e a fast mechanism for correcting ser-ice "eficiencies (correct the pro!(em !efore other customers e.perience the same "issatisfaction)$ Qse internet coo%ies to trac% customer interests an" persona(i;e pro"uct offerings accor"ing(y Qse the Internet to engage in co((a!orati-e customi;ation or rea(-time customi;ation Pro-i"e a fast mechanism for managing an" sche"u(ing maintenance) repair) an" ongoing support (impro-e efficiency an" effecti-eness) &he ' M program can !e integrate" into other cross-functiona( systems an" there!y pro-i"e accounting an" pro"uction information to customers *hen they *ant it$ &ifferentiating Offering$ 0o* -a(ue customer re+uiring high -a(ue customer offerings$ 0o* -a(ue customer *ith potentia( to !ecome high -a(ue in near future$ 1igh -a(ue customer re+uiring high -a(ue ser-ice$ 1igh -a(ue customer re+uiring (o* -a(ue ser-ice$

17

High

L"% value cu !"#e$ %h" $e&ui$e high level "' e$vice #u ! ei!he$ +u$cha e !he highe$ level "' e$vice "$ -ec"#e "u$ c"#+e!i!"$ l"% value.high c" ! cu !"#e$

High value cu !"#e$ %h" $e&ui$e a high level "' e$vice a$e #ai(!ai(e) %i!h"u! e*+a()i(g !he c" !l, "''e$i(g !" !he e(!i$e cu !"#e$ +"+ula!i"(

Service Require

Low

Low

C*$to#er 6al*e C*$to#er 6al*e ) Ser+ice Matri;

High

18

 %ee'ing E;i$ting C*$to#er$ 5ra"ing customers from -ery satisfie" to -ery "isappointe" shou(" he(p the organi;ation in impro-ing its customer satisfaction (e-e(s an" scores$ ,s the satisfaction (e-e( for each customer impro-es) so sha(( the customer retention *ith the organi;ation$ Ma;i#i<ing Life ti#e +al*e 2.p(oit up-se((ing an" cross-se((ing potentia($ By i"entifying (ife stage an" (ife e-ent trigger points !y customer) mar%eters can ma.imi;e share of purchase potentia(. &hus the sing(e a"u(ts sha(( re+uire a ne* car stereo an" as he gro*s into a marrie" coup(e his nee"s gro* into app(iances$ Increa$e Lo!alt! 0oya( customers are more profita!(e$ ,ny company *i(( (i%e its min"share status to impro-e from !eing a suspect to !eing an a"-ocate$ 'ompany has to in-est in terms of its pro"uct an" ser-ice offerings to its customers$ It has to inno-ate an" meet the -ery nee"s of its c(ients customers so that they remain as a"-ocates on the (oya(ty cur-e$ eferra( sa(es in-aria!(y are (o* cost high margin sa(es$ O Mechanism to e-a(uate Potentia( =BMs$ O &o "e-e(op integrate" 3ata!ase$ O ,ssessing the nee" of Potentia( =BMs$ O :ays to meet those nee"s$ O I"entify the softer e(ements$ O 3e-ising a *ay to etain an" gro* *ith those =BMs$ O Mo-ing further ahea" Satisfaction 3e(ightment 0BR,0I&R O &o "e-e(op Strategy an" action p(an on +uarter & annua( !asis$ O &o gain %no*(e"ge a!out consumer !eha-iour O &o %no*) ho* to maintain re(ationship *ith customer> O &o %no*) the nee"s ana(ysis of customer O &o un"erstan") *ith the he(p of fee"!ac% form that *hy customers are not tra"ing *ith ,nge( O &o %no*) the customer perception a!out company?s pro"ucts & ser-ices O &o %no*) the grie-ances among the customers a!out pro"ucts & ser-ices
19

Re$earc" Met"odolog! for CRM

Meeting an" satisfying each customer?s nee" uni+ue(y an" in"i-i"ua((y$ In the mass mar%ets in"i-i"ua(i;e" information on customers is no* possi!(e at (o* costs "ue to the rapi" "e-e(opment in the information techno(ogy an" "ue to a-ai(a!i(ity of sca(a!(e "ata *arehouses an" "ata mining pro"ucts$ By using on(ine information an" "ata!ases on in"i-i"ua( customer interactions) mar%eters aim to fu(fi(( the uni+ue nee"s of each mass-mar%et customer$ Information on in"i-i"ua( customers is uti(i;e" to "e-e(op fre+uency mar%eting) interacti-e mar%eting) an" after mar%eting programs in or"er to "e-e(op re(ationship *ith high-yie("ing customers$ In

20

the conte.t of !usiness-to-!usiness mar%ets) in"i-i"ua( mar%eting has !een in p(ace of +uite sometime$ =no*n as =ey ,ccount Management Program) here mar%eters appoint customer teams to hus!an" the company resources accor"ing to in"i-i"ua( customer nee"s$ Contin*it! Marketing Progra#$ &a%e the shape of mem!ership an" (oya(ty car" programs *here customers are often re*ar"e" for their mem!er an" (oya(ty re(ationships *ith the mar%eters$ &he !asic premise of continuity mar%eting programs is to retain customers an" increase (oya(ty through (ong-term specia( ser-ices that has a potentia( to increase mutua( -a(ue through (earning a!out each other$ Partnering Progra#$ &he thir" type of ' M programs is partnering re(ationships !et*een customer an" mar%eters to ser-e en" user nee"s$ In the mass mar%ets) t*o types of partnering programs are most common# 'o-!ran"ing an" affinity partnering$ Missing process of ' M &ra"itiona((y customer re(ationship management (' M) re-o(-es aroun" the three functions of se((ing) mar%eting an" support$ <arious process mo"e(s ha-e !een !ui(t aroun" ho* these functions are integrate" an" operate" in a customer oriente" enterprise$ &here is ho*e-er a fourth critica( function that is (ac%ing in most ' M mo"e(s$ &he fourth function that often is the source of a competiti-e e"ge is that of inno-ation$ 'ompanies must continua((y rein-ent themse(-es to "e(i-er an impro-e" an" often a tota((y ne* -a(ue offering to their customer !ase$ ' M must pro-i"e the customer inte((igence that fee"s information !ac% into the enterprise?s %no*(e"ge management processes *here it can trigger ne* inno-ation processes$ :hen ' M is integrate" into the inno-ation process) significant -a(ue can !e "eri-e" from faster time to mar%et cyc(e times an" *ith ne* processes an" ser-ices$ Mar%eting automation must ensure that the inno-ation processes are actua((y mar%et "ri-en$ , mar%et "ri-en inno-ation process must inc(u"e !oth strategies that are focuse" on satisfying customer re+uirements as *e(( as strategies focuse" at re"efining customer re+uirements$ Sa(es automation shou(" !e integrate" *ith the inno-ation process !y ensuring that a(( sa(es channe(s are prepare" an" rea"y
21

to ta%e ne* processes an" ser-ices to mar%et !efore competiti-e forces can react$ 'ustomer ser-ice automation must !e "esigne" to empo*er the customer *ith the option of assisting *ith the "esign of the -a(ue offering$ e"efining ' M aroun" inno-ation) sa(es) mar%eting an" ser-ice can i"entify ne* competiti-e opportunities for an enterprise$ &he remaining +uestion is *hether companies are prepare" to ta%e the initiati-e an" e.pan" the "efinition of customer re(ationship management to inc(u"e the process of inno-ation$ &he pressure to "e(i-er resu(ts *ithin the tra"itiona( "efinition of ' M a(rea"y o-er*he(ms companies$ &he "ia(og must start rather ear(ier than (ater !ecause the competiti-e *in"o* of tra"itiona( ' M is "ecreasing an" customer "eman"s for a more inno-ati-e an" responsi-e enterprise *i(( increase

Arc"itect*re of CRM
&here are three parts of app(ication architecture of ' M# Bperationa( - automation to the !asic !usiness processes (mar%eting) sa(es) ser-ice) ,na(ytica( - support to ana(y;e customer !eha-ior) imp(ements !usiness inte((igence a(i%e techno(ogy 'o((a!orati-e - ensures the contact *ith customers (phone) emai() fa.) *e!) SMS) post) in person) O'erational CRM Bperationa( ' M means supporting the Sfront officeS !usiness processes) *hich inc(u"e customer contact (sa(es) mar%eting an" ser-ice)$ &as%s resu(ting from these processes are for*ar"e" to resources responsi!(e for them) as *e(( as the information necessary for carrying out the tas%s an" interfaces to !ac%-en" app(ications are !eing pro-i"e" an" acti-ities *ith customers are !eing "ocumente" for further reference$ Bperationa( ' M pro-i"es the fo((o*ing !enefits# 3e(i-ers persona(i;e" an" efficient mar%eting) sa(es) an" ser-ice through mu(ti-channe( co((a!oration 2na!(es a DL0-"egree -ie* of your customer *hi(e you are interacting *ith them

22

Sa(es peop(e an" ser-ice engineers can access comp(ete history of a(( customer interaction *ith your company) regar"(ess of the touch point$ &he operationa( part of ' M typica((y in-o(-es three genera( areas of !usiness#

O%ales force automation &%'A(

S9, automates some of the companyMs critica( sa(es an" sa(es force management functions) for e.amp(e) (ea"/account management) contact management) +uote management) forecasting) sa(es a"ministration) %eeping trac% of customer preferences) !uying ha!its) an" "emographics) as *e(( as performance management$ S9, too(s are "esigne" to impro-e fie(" sa(es pro"ucti-ity$ =ey infrastructure re+uirements of S9, are mo!i(e synchroni;ation an" integrate" pro"uct configuration$

O ustomer service and support & %%(

'SS automates some ser-ice re+uests) comp(aints) pro"uct returns) an" information re+uests$ &ra"itiona( interna( he(p "es% an" tra"itiona( in!oun" ca((-center support for customer in+uiries are no* e-o(-e" into the Scustomer interaction centerS ('I')) using mu(tip(e channe(s (:e!) phone/fa.) face-to-face) %ios%) etc)$ =ey infrastructure re+uirements of 'SS inc(u"e computer te(ephony integration ('&I) *hich pro-i"es high -o(ume processing capa!i(ity) an" re(ia!i(ity$ "nterprise mar)eting automation &"*A( 2M, pro-i"es information a!out the !usiness en-ironment) inc(u"ing competitors) in"ustry tren"s) an" macro-en-ironmenta( -aria!(es$ It is the e.ecution si"e of campaign an" (ea" management$ &he intent of 2M, app(ications is to impro-e mar%eting campaign efficiencies$ 9unctions inc(u"e "emographic ana(ysis) -aria!(e segmentation) an" pre"icti-e mo"e(ing occurs on the ana(ytica( (Business Inte((igence) si"e$ Integrate" ' M soft*are is often a(so %no*n as Sfront office so(utions$S &his is !ecause they "ea( "irect(y *ith the customer$ Many ca(( centers use ' M soft*are to store a(( of their customerMs "etai(s$ :hen a customer ca((s) the system can !e use" to retrie-e an" store information re(e-ant to the customer$ By ser-ing the customer +uic%(y an" efficient(y)
23

an" a(so %eeping a(( information of a customer in one p(ace) a company aims to ma%e cost sa-ings) an" a(so encourage ne* customers$ ' M so(utions can a(so !e use" to a((o* customers to perform their o*n ser-ice -ia a -ariety of communication channe(s$ 9or e.amp(e) you might !e a!(e to chec% your !an% !a(ance -ia your :,P phone *ithout e-er ha-ing to ta(% to a person) sa-ing money for the company) an" sa-ing your time$ Anal!tical CRM In ana(ytica( ' M) "ata gathere" *ithin operationa( ' M an"/or other sources are ana(y;e" to segment customers or to i"entify potentia( to enhance c(ient re(ationship$ 'ustomer ana(ysis typica((y can (ea" to targete" campaigns to increase share of customerMs *a((et$ 2.amp(es of 'ampaigns "irecte" to*ar"s customers are# ,c+uisition# 'ross-se(() up-se(( etention# etaining customers *ho (ea-e "ue to maturity or attrition$ Information# Pro-i"ing time(y an" regu(ar information to customers$ O Mo"ification# ,(tering "etai(s of the transactiona( nature of the customersM re(ationship$ ,na(ysis typica((y co-ers !ut is not (imite" to# O 3ecision support# 3ash!oar"s) reporting) metrics) performance etc$ O Pre"icti-e mo"e(ing of customer attri!utes O Strategy an" esearch ,na(ysis of 'ustomer "ata may re(ate to one or more of the fo((o*ing ana(yses# 'ontact channe( optimi;ation 'ontact Bptimi;ation 'ustomer ,c+uisition / eacti-ation / etention 'ustomer Segmentation 'ustomer Satisfaction Measurement / Increase Sa(es 'o-erage Bptimi;ation 9rau" 3etection an" ana(ysis 9inancia( 9orecasts Pricing Bptimi;ation Pro"uct 3e-e(opment Program 2-a(uation is% ,ssessment an" Management
24

3ata co((ection an" ana(ysis is -ie*e" as a continuing an" iterati-e process$ I"ea((y) !usiness "ecisions are refine" o-er time) !ase" on fee"!ac% from ear(ier ana(ysis an" "ecisions$ &herefore) most successfu( ana(ytica( ' M projects ta%e a"-antage of a "ata *arehouse to pro-i"e suita!(e "ata$ Business Inte((igence is a re(ate" "iscip(ine offering some more functiona(ity as separate app(ication soft*are$ Colla.orati+e CRM 'o((a!orati-e ' M faci(itates interactions *ith customers through a(( channe(s (persona() (etter) fa.) phone) *e!) e-mai() an" supports coor"ination of emp(oyee teams an" channe(s$ It is a so(ution that !rings peop(e) processes an" "ata together so companies can !etter ser-e an" retain their customers$ &he "ata/acti-ities can !e structure") unstructure") con-ersationa( an"/or transactiona( in nature$ 'o((a!orati-e ' M pro-i"es the fo((o*ing !enefits# 2na!(e efficient pro"ucti-e customer interactions across a(( communications channe(s 2na!(es *e! co((a!oration to re"uce customer ser-ice costs O Integrates ca(( centers ena!(ing mu(ti-channe( persona( customer interaction O Integrates -ie* of the customer *hi(e interaction at the transaction (e-e(

Literat*re Re+ie,
Co#'an! Profile
25

Angel Broking Li#ited is one of the (ea"ing an" professiona((y manage" stoc% !ro%ing firm in-o(-e" in +ua(ity ser-ices an" research$ ,nge( Bro%ing 0imite" is a corporate mem!er of &he Stoc% 2.change) Mum!ai$ &he mem!ership of the company *ith &he Stoc% 2.change Mum!ai *as origina((y in the name of Mu%esh $ 5an"hi) *hich *as e-entua((y turne" into a corporate mem!ership in the name of ,nge( Bro%ing 0imite"$ ,nge( Bro%ing 0imite" is manage" !y Mr$ 3inesh &ha%%ar an" he is *e(( supporte" !y Mr$ Mu%esh 5an"hi) a fifteen years -eteran in the mar%et$ &he group is *e(( supporte" !y a professiona( an" +ua(ifie" research team an" efficient operations an" !ac% office team) *hich comprises of high(y "e"icate" an" +ua(ifie" in"i-i"ua(s$ ,nge( has an in-house) state of art research "epartment$ ,nge( !e(ie-es in reaching out to the customer at the farthest en" rather than !y reaching out to them$ &he company in its 2n"ea-our to gi-e its c(ient the !est has opene" up se-era( !ranches a(( o-er Mum!ai) *hich are efficient(y integrate" *ith the 1ea" Bffice$ ,nge( Bro%ing 0imite" is primari(y into retai( stoc% !ro%ing) *ith a customer !ase of retai( in-estors) *hich has !een increasing at a compoun"e" gro*th rate of F00T e-ery year$ &he company has huge net*or% su!-!ro%ers in Mum!ai an" other p(aces outsi"e Mum!ai) registere" *ith S2BI) *ho act as channe( partners for the company$ &he company present(y has the tota( staff strength of aroun" FG0 emp(oyees *ho are sprea" accor"ing(y across the hea" office an" a(( the !ranches$ ,nge( has empo*ere" its physica( presence throughout In"ia through -arious strategies *hich it has !een a"opting efficient(y an" effecti-e(y o-er a perio" of time) (i%e opening up of !ranches at -arious p(aces) tie-ups *ith -arious agencies an" sa(es agents) !uy-outs of sma((er regiona( outfits an" appointment of su!-!ro%ers an" franchisees$ Moreo-er) ,nge( Bro%ing 0t"$ has !een tapping an" inc(u"ing high net-*orth an" se(f-emp(oye" in"i-i"ua(s to its -ast array of c(ients$ ,nge( has a(*ays stri-e" in the "irection of "e(i-ering u(timate c(ient satisfaction an" "e-e(oping stronger !on"s *ith its customers an" chose partners$ ,nge( has a -ision to intro"uce ne* an" inno-ati-e pro"ucts an" ser-ices regu(ar(y$ Moreo-er ,nge( has !een one among the pioneers to
26

intro"uce the (atest techno(ogica( inno-ations an" integrate it efficient(y *ithin its !usiness$ ,nge( Bro%ing 0t" tryst *ith e.ce((ence in customer re(ations !egan in F9I@$ &o"ay) ,nge( has emerge" as one of the most respecte" Stoc%Bro%ing an" :ea(th Management 'ompanies in In"ia$ :ith its uni+ue retai(-focuse" stoc% tra"ing !usiness mo"e() ,nge( is committe" to pro-i"ing N ea( <a(ue for Money? to a(( its c(ients$ &he ,nge( 5roup is a mem!er of the Bom!ay Stoc% 2.change (BS2)) 4ationa( Stoc% 2.change (4S2) an" the t*o (ea"ing 'ommo"ity 2.changes in the country# 4'32K & M'K$ ,nge( is a(so registere" as a 3epository Participant *ith '3S0

,nge(?s Business

2+uity &ra"ing 'ommo"ities Portfo(io Management Ser-ices Mutua( 9un"s 0ife Insurance Persona( 0oans IPB 3epository Ser-ices In-estment ,"-isory

,nge(?s Presence

4ation-*i"e net*or% of 2F egiona( 1u!s Presence in F2E cities B-er LIF0 Su!-Bro%ers & Business ,ssociates More than G$9 (a%h '(ients

,nge( 5roup

,nge( Bro%ing 0t"$ ,nge( 'apita( & 3e!t Mar%et 0t"$ ,nge( 'ommo"ities Bro%ing 0t"$ ,nge( Securities 0t"$

27

Boar" of 3irectors# Mr. &ine$" T"akkar =o*nder C"air#an > Managing &irector

&he ,nge( 5roup of 'ompanies *as !rought to (ife !y Mr$ 3inesh &ha%%ar$ 1e -enture" into stoc% tra"ing *ith an intention to raise capita( for his o*n in"epen"ent enterprise$ 1o*e-er) he recogni;e" the opportunity offere" !y the stoc% mar%et to ser-e in"i-i"ua( in-estors$ &hus In"ia?s first retai(-focuse" stoc%-!ro%ing house *as esta!(ishe" in F9I@$ Qn"er his (ea"ership) ,nge( !ecame the first !ro%ing house to em!race ne* techno(ogy for faster) more effecti-e an" affor"a!(e ser-ices to retai( in-estors$ Mr$ &ha%%ar is -a(ue" for his un"erstan"ing of the economy an" the stoc%-mar%et$ &he print an" e(ectronic me"ia often see% his -ie*s on the mar%et tren" as *e(( as in-estment strategies$ Mr. Lalit T"akkar &irector ? Re$earc"

Mr$ 0a(it &ha%%ar is the moti-ating force !ehin" ,nge(?s high(y acc(aime" esearch team$ 1e?s !een a part of the senior management team since the ,nge( 5roup?s inception$ 1is technica( an" fun"amenta( out(oo% has pro-i"e" impetus to ,nge(?s mar%et research team$ esearch-!ase" & persona(i;e" a"-isory ser-ices are ,nge(?s forte) an" Mr$ 0a(it &ha%%ar has un"ou!te"(y !een the !rain !ehin" it$

28

:hen it comes to ana(y;ing the mar%et) Mr$ 0a(it &ha%%ar is tru(y a genius$ 1is han"s-on e.perience an" fun"amenta( %no*(e"ge of the mar%et can pre"ict the mar%et tren" ear(y$ 1is -ie*s on the mar%et tren" are often +uote" in the print an" e(ectronic me"ia$

Mr. A#it Ma:*#dar C"ief Strateg! Officer

, chartere" ,ccountant !y +ua(ification) Mr$ ,mit Majum"ar is a %ey mem!er of ,nge(?s strategic "ecision-ma%ing process$ 1e has !een *ith the group since ,ugust 200E$ 1e has han"(e" se-era( functions of the group (i%e finance an" operations) to name a fe*$ 1e has rich e.perience in finance) in-estment !an%ing) treasury) consu(tancy an" a"-isory ser-ices$ Mr$ Majum"ar has (e" many successfu( initiati-es for the group$ Before joining the ,nge( 5roup) Mr$ Majum"ar has !een associate" *ith a!o In"ia 9inance) ,m!it 'orporate 9inance an" 2rnst & Roung$ Mr. Ra:i+ P"adke E;ec*ti+e &irector ? HR > Cor'. Co##*nication$

Mr$ aji- Pha"%e has acti-e(y contri!ute" to the 5roup?s gro*th o-er the (ast four years$ 1o("ing a major in 9inance) Mr$ aji- Pha"%e is a strategic thin%er *ith e.pertise in the fie(" of corporate p(anning) internationa( mar%eting) financia( ser-ices) !ran"-!ui("ing) 1 3 an" +ua(ity management$ :ith o-er D2 years of e.perience) Mr$ Pha"%e has successfu((y (e"

29

SBQs an" inancia( companies from concept to commissioning$ 1is career hori;on spans Moti(a( Bs*a( Securities) &imes 5uaranty 9inancia(s) 4agarjuna Securities an" &ata 2.ports 0t"$ 1e is a(so a *e((-%no*n spea%er in the 1 an" !usiness "e-e(opment circuit an" his -ie*s are feature" on -arious e(ectronic me"ia as *e(($ Mr. 6ina! Agra,al E;ec*ti+e &irector ? E4*it! Broking

Mr$ <inay ,gra*a( (ea"s the 2+uity Bro%ing !usiness at ,nge() *hich comprises Business 3e-e(opment) Bperations) Pro"uct 3e-e(opment an" 2-!ro%ing initiati-e$ 1e is acti-e(y in-o(-e" in e.p(oring ne* *ays to a"opt techno(ogy for !usiness enhancement$ , 'hartere" ,ccountant !y +ua(ification) Mr$ ,gra*a( !egan his career *ith the ,nge( 5roup as 9inance an" Bperations 'onsu(tant) an" since then he?s +uic%(y c(im!e" up the corporate (a""er$ Mr. Nik"il &a;ini E;ec*ti+e &irector ) Sale$ and Marketing

:ith an MB, in finance) Mr$ 4i%hi( 3a.ini has !een instrumenta( in intro"ucing the concept of professiona( mar%eting of !ro%ing ser-ices at ,nge($ 1is area of focus is Business 3e-e(opment) is% Management an" Bperations$ Mr$ 3a.ini has immense e.perience in the mar%eting of financia( pro"ucts an" ser-ices$ 1e has !een associate" *ith 139' Ban% 0t"$ in the past$

30

Mr. Hit*ng$"* &e.nat" E;ec*ti+e &irector ) &i$tri.*tion > @ealt" Manage#ent

, mar%eting professiona( an" a British 'he-ening scho(ar from the 0on"on Schoo( of 2conomics) Mr$ 1itungshu 3e!nath (ea"s the 3istri!ution an" :ea(th Management !usiness at the ,nge( 5roup$ It inc(u"es the "istri!ution of Insurance) mutua( fun"s) IPBs) persona( (oans an" other *ea(th management pro"ucts$ Mr$ 3e!nath has o-er FI years of in"ustry e.perience$ 1e has !een associate" *ith &imes 5uaranty 9inancia( 0t"$) 9ortress 9inancia( Ser-ices 0t"$) ,((iance 'apita( ,sset Management an" 139' ,sset Management 0t"$ in the past$

Mr. M*dit %*l$"re$"t"a E;ec*ti+e &irector ) B*$ine$$ Intelligence > Anal!tic

Mr$ Mu"it =u(shreshtha hea"s the a"-ance ana(ytics an" strategic !usiness inte((igence "i-ision at ,nge($ :ith a Bache(or?s "egree in 2ngineering an" Ph3 in 2conomics) Mr$ Mu"it =u(shreshtha has more than F2 years e.perience in the fie(" of strategy an" !usiness consu(ting$ 1e has !een associate" *ith repute" consu(ting firms (i%e 3e(oitte 'onsu(ting In"ia) 2rnst an" Roung) ,rthur ,n"ersen an" :4S 5(o!a($ 1e has a"-ise" se-era( !ig c(ients in the Q$S$ an" Q$=$ 1e is a(so a %no*n spea%er at pu!(ic seminars an" conferences organise" !y 'II) 4,SS'BM) In"ian Schoo( of Business an" II&$

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Mr. Santan* S!a# E;ec*ti+e &irector ? O'eration$

Mr$ Syam !rings *ith him o-er FI years of e.perience in the fie(" of &ransaction Ban%ing) :ho(esa(e Ban%ing) &reasury Ban%ing) 'onsumer Ban%ing an" 'BS$ 1e starte" his career *ith ,4U 5rin"(ays Ban% an" he *as a(so associate" *ith Stan"ar" 'hartere" Ban% in In"ia as 3irector &ransactiona( Ban%ing$ Mr$ Syam fo((o*e" up his 2ngineering "egree *ith an MB,$ 1e has a(so atten"e" Ban%ing & &echno(ogy seminars organise" !y S'B Singapore) BS2 In"ia & 2uro 9inance$ Mr. %etan S"a" A$$ociate &irector ) Infor#ation Tec"nolog!

I& is a strategic function at ,nge($ ,n" Mr$ =etan Shah is in-o(-e" in the "esigning of ,nge(?s I& po(icies an" Strategies$ Mr$ Shah (ea"s a(( I&re(ate" acti-ities from p(anning an" !u"geting to imp(ementation an" maintenance$ Mr$ Shah has o-er FI years of in"ustry e.perience$ 1e has !een in-o(-e" in -arious aspects of Business Bperations in his pre-ious assignments$ M$. Pink! %ot"ari A$$ociate &irector ) Sale$ And Marketing

32

Ms$ Pin%y =othari is responsi!(e for "e-e(opment an" e.pansion of the ,nge( 5roup?s !usiness in Southern In"ia$ She starte" her career at ,nge( as Business 3e-e(opment 2.ecuti-e$ She *as then appointe" the hea" of Surat Branch an" the South 5ujarat region) !efore assuming the ro(e of ,ssociate 3irector$ , +ua(ifie" 'ompany Secretary an" an MB, in 9inance) Ms$ =othari has -ast e.perience in !usiness "e-e(opment in the financia( ser-ices in"ustry$ Mr. Na+een Mat"*r A$$ociate &irector ? Co##oditie$ B*$ine$$

, '9, of F99@) Mr$ Mathur ho("s a Post 5ra"uation "egree in 9inancia( Management an" Business 9inance$ 1e !rings *ith him o-er FE years of e.perience in the financia( mar%ets 1e ha" !een associate" *ith e(igare 'ommo"ities) =ar-y 'onsu(tants an" *ith B0B 0t" in the past$ 1e has !een in-o(-e" in se-era( management acti-ities) treasury operations) corporate an" strategic p(anning) research acti-ities in 9utures an" Bptions mar%ets in his past assignments$ Mr$ Mathur is a regu(ar spea%er on a(( the prominent financia( ne*s channe(s$

33

Prod*ct$ and Ser+ice$)

:e ha-e !een traine" an" intro"uce" to ,nge(?s -arious pro"uct an" ser-ices) *hich are as fo((o*s#

E-Broking: ,nge( offers se-era( user-frien"(y ser-ices to customers so that they can manage their stoc% portfo(io$ Inc(u"ing) on(ine capa!i(ities (in%e" to an information "ata!ase to he(p customers in-est) confi"ent(y$ Bur e-!ro%ing ser-ices are specia((y "esigne" for the net-sa--y tra"ers an" in-estors *ho prefer operating from their home or office) through the internet$ &here are t*o types of soft*are$ 0. Bro,$er)Ba$ed ,nge( In-estor ,nge( &ra"e 5. A''lication)Ba$ed ,nge( 3iet ,nge( ,ny*here USP3$ of Angel E).roking Mu(tip(e 2.changes on a sing(e screen- BS2) 4S2-9&B) M'K) 4'32K 1ot %eys simi(ar to !ro%er?s termina( Streaming +uotes Pro"ucts/Soft*are/Bac% office training for a(( 2-!ro%ing c(ients In-"epth research & technica( chart) intra-"ay ca((s 2E.@ Bac%-office <ie*ing (e"ger) Bi((s) 'ontracts) Sau"a summary) Bpen Position) 1o("ings) 3P &ransactions) ,uction 3etai(s$
34

 ,uto pay-in of shares & Bn(ine Securities Pay-But Instant transfer of fun" & Bn(ine 9un"s pay-out re+uest 1igh(y secure an" confi"entia(

Portfolio management service

Successfu( in-esting in 'apita( Mar%ets "eman"s e-er more time an" e.pertise$ In-estment Management is an art an" a science in itse(f$ Professiona( In-estment Management Ser-ices are no (onger the pri-i(ege of on(y (arge institutiona( in-estors$ Portfo(io Management Ser-ices (PMS) is one such ser-ice that is fast gaining eminence as an in-estment a-enue of choice for 1igh 4et*orth In-estors (i%e you$ PMS is a sophisticate" in-estment -ehic(e that offers a range of specia(i;e" in-estment strategies to capita(i;e on opportunities in the mar%et$ &he Portfo(io Management Ser-ice com!ine" *ith competent fun" management) "e"icate" research an" techno(ogy) ensures a re*ar"ing e.perience for its c(ients$

PRODUCT BOUQUET
a) Angel O!$ter 'hief In-estment Bfficer Mr$ ajen Shah Bottom up concentrate" portfo(io of Mi" 'ap & Sma(( 'ap 'ompanies *ith emphasis on <a(ue In-esting$ +nvestor Profile, &he scheme *ou(" !e suite" for in-estors *ith me"ium to high ris% appetite ha-ing (ong term perspecti-e 'ees and harges 2T ,sset Management 'harges 0$G0T !ro%erage on transactions .)Angel Bl*e)c"i' 9un" Manager Mr$ Phani Se%har 3i-ersifie" 2+uity portfo(io of 0arge cap & Mi" 'ap 'ompanies$

35

+nvestor Profile, &he scheme *ou(" !e suite" for in-estors *ith me"ium to (o* ris% appetite) ha-ing (ong term perspecti-e$ 'ees and harges 2T ,sset Management 9ees 0$G0T Bro%erage on transactions Angel E4*it! &eri+ati+e$ =*nd 9un" Manager Mr$ Si""arth Bhamre Bottom-Qp concentrate" portfo(io *ith 2+uities & 3eri-ati-es) an" emphasis on 1e"ging !y using -o(ati(ity in the Mar%ets$ +nvestor Profile, &he scheme *ou(" !e suite" for in-estors *ith (o* to me"ium ris% appetite) ha-ing (ong term perspecti-e$ Suita!(e for 14I '(ients an" 'orporate *ho *ant to par% money for consistent eturn from the mar%et e-en if mar%et remaine" f(at$ 'ees and harges 2T ,sset Management 'harges 0$F0T on 3e(i-ery an" s$G0 f(at on options) 0$0FT on futures Angel Gro,t" 9un" Manager Mr$ Phani Se%har 3i-ersifie" 2+uity portfo(io of 0arge cap & Mi" 'ap 'ompanies *ith emphasis on gro*th In-estment$ +nvestor Profile, &he scheme *ou(" !e suite" for in-estors *ith mo"erate ris% appetite$ ecommen"e" in-estment hori;on is FG to FI months$ 'ees and harges, 2T ,sset Management 'harges 0$GT !ro%erage on transactions

36

PMS c"aracteri$tic$( ) Persona(i;e" Ser-ice Interaction *ith 9un" Manager egu(ar fee"!ac% an" reports Pro-acti-e management of fun"s 1o("ings not impacte" !y entry/e.it of !ig in-estors 'an remain (i+ui" for (ong perio"s 3iscip(ine" in-estment process Jua(ity in-estments 0imiting ris% 0o* portfo(io turno-er 9ocus on generating ,!so(ute returns rather than e(ati-e eturns

Angel -oldPRO&UCT ) =eat*re$ of Angel Gold , premium ser-ice for c(ients *ho nee"s professiona( gui"ance on (ong term in-estments Minimum fun"s or portfo(io of s$F 0a%h an" ma.imum of s$E 0a%hs *i(( !e e(igi!(e for ,nge( 5o("$$ Bro%erage of 0$G0T-0$@GT for c(ients$ G0T sharing of !ro%erage in case of Su!-!ro%er?s c(ients$ 4o ,M') 4o 2ntry/2.it (oa" an" 4o profit sharing Shares can !e %ept in ,nge( poo( or can !e transferre" to the respecti-e 3P accounts Intimation regar"ing transaction *i(( !e gi-en to c(ients !y e-ening of the "ay of transaction 4o 0oc%-in perio"$ Profits can !e re"eeme" or re-in-esting !ase" on c(ient?s *ish 2.isting c(ient account can !e use" for ,nge( 5B03$ '(ients can "o there o*n transactions in the same account as *e(($ esearch 3irector Mr$ 0a(it &ha%%ar a(ong *ith F2 senior ana(ysts *i(( ta%e in-estment "ecisions In-estment *i(( !e "one for a (onger time hori;on$ (F2-FI Months) Bro*ser !ase" BB soft*are for c(ients an" !ranches
37

 Month(y 4e*s(etter *i(( !e re(ease" from ,nge( 5B03 "es% Perio"ic meetings *i(( !e he(" in the !ranches POSITIONING ,nge( 5B03 is positione" as an e+uity in-estment option for a(( those in+e$tor$ *ho aims for rea(istic return from e+uity as an asset c(ass on a (ong term perspecti-e$ It is for the in-estors *ho *ishes to see% professiona( a"-ice for therein-estments$ Uni4*e $elling Pre'o$ition AUSPB , strong team of FF sector specific ana(ysts hea"e" !y esearch "irector gui"ing the in-estments 4o 2ntry/2.it (oa") 4o profit sharing) 4o Management fees , corpus (imit as (o* as s$F 0a%h$ , portfo(io of gro*th stoc%s an" not mar%et capita(i;ation !ias$ 9(e.i!i(ity of rein-esting) re"eeming an" (i+ui"ating the portfo(io , (o* cost so(ution for in-esting$ Prod*ct Seg#ent ,nge( 5B03 is for the peop(e *ho fa(( in mi""(e c(ass 8 higher mi""(e c(ass section of the society Peop(e *ho are not ris% a-erse an" can un"erstan" the return !enefits -is-V--is ca(cu(ate" ris% ta%en Peop(e *ho are ne* entrant to the e+uity mar%ets) norma((y coming through the Mutua( 9un" route$ Target C*$to#er$ Roung professiona(s earning sa(aries aroun" s$D 0acs to s$L 0acs *ith one or t*o years e.perience Mi""(e age" professiona(s consi"ering tra"itiona( *ays of in-esting i$e$ 93s) PP9) go(") !on"s) etc$

38

 Sma(( sca(e !usinessmen *ho are not ris% a-erse an" *i(( un"erstan" the importance of reasona!(e returns etire" peop(e *ho ha-e ta%en hefty < S or has sa-ings of *hich 202GT can !e in-este" in e+uities

*argin 'unding and prepaid #ro)erageMargin 9un"ingCMargin 9un"ingD a((o* you to ta%e higher e.posure on the fun"s as *e(( as un(oc% the -a(ue of your e.isting portfo(io & ta%e a"-antage of in-estment opportunities in the mar%et *ithout the in-o(-ement of fresh fun"s$ Bne can use the shares in his current portfo(io to ma%e fresh purchases in the mar%et$ If uti(i;e" pru"ent(y) this pro"uct can he(p *nlock t"e +al*e of Sec*ritie$ e-en "uring "epresse" Stoc% Mar%et con"itions an" pro-i"e customers *ith the much-nee"e" (i+ui"ity "uring pressing times$ Ad+antage$(

Pro-i"e instant (i+ui"ity *ithout ha-ing to se(( your Securities$ ,((o* you to gra! in-estment opportunities instant(y *ithout any nee" to pay first$ 0e-erage your fun"s a-ai(a!(e for in-estments$ Benefits (i%e !onuses an" "i-i"en"s continue to accrue to the !orro*er$ ,ny appreciation in the -a(ue of the Securities gi-en as margin *ou(" automatica((y a((o* enhancement in "ra*ing po*er$ Interest ca(cu(ate" on the amount uti(i;e" & the time for *hich it is uti(i;e"$

Pre-Pai" Bro%erage

39

Pre-pai" !ro%erage is one of the !est schemes for customers to ta%e the a"-antages of (ess !ro%erage$ 3ifferent pre-pai" recharge are a-ai(a!(e *ith "ifferent -a(i"ity$ Some characteristics of pre-pai" !ro%erage are as fo((o*s#

Uero account opening charges ,ttracti-e Bro%erage ate 9ree 3P ,M' for F year ,ssure" gifts *orth thousan"s *ith e-ery account$ 2asy & 9ast echarge 9ree 9inancia( In-estment ,pp(ication *ith e-ery account

E*alit! A$$*rance .! Angel)

,nge( Bro%ing is the 9irst Bro%erage 1ouse to ha-e a Jua(ity ,ssurance 'e(( across In"ustry 3e"icate" J, teams at 'SB & !ranches to reso(-e c(ient +ueries/ comp(aints through te(ephone) e-mai( or -isit$Jua(ity assurance ce(( is one such significant mi(estone achie-e" !y the company)*hich stan"s for it?s performance$2sta!(ishe" in200G)the ce(( *as set up as the compe((ing nee" *as fe(t to shift from Ncustomer satisfaction to customer "e(ight7 Angel3$ definition of E*alit!) Pro"uct an" ser-ices that tota((y satisfy an" often e.cee" customer nee"s an" e.pectations in a(( respect to "e(ight him$ Simp(y put)Jua(ity is achie-ing a high "egree of e.ce((ence in a(( forms of acti-ities from "esign)"e-e(opment)ser-iing an" "ocumentation$ 6 ight 9irst &ime an" ight 2-ery &ime7$,n" to achie-e that)they fo((o* the E NP? Jua(ity mo"e(# Pro!(em so(-ing-continuous impro-ement an" (earning Peop(e an" Partners- espect)cha((enge)gro*th Process-Stan"ar"i;e" tas%s for continuous impro-ement Phi(osophy-0ong term thin%ing

Re$earc" > Ad+i$or!

40

&he mar%ets en"e" Mon"ay margina((y in the green) after opening *ea% "ue to concerns a!out S*ine f(u$ &he In"ices *ere *ea% at the outset of the &ues"ay en"ing the "ay in re"$ Mar%ets surge" on :e"nes"ay on positi-e g(o!a( cues an" short co-ering in ,pri( 2009 "eri-ati-es contracts$ &he mar%ets remaine" c(ose" !oth on &hurs"ay an" 9ri"ay$ &he mar%ets just en"e" the *ee% positi-e) *ith the Sense. gaining 0$@T an" the 4ifty c(osing margina((y (o*er !y 0$2T

=*nda#ental Anal!$i$
9un"amenta( ana(ysis is one of the most usefu( too(s that in-estors use *hen ma%ing "ecisions a!out *hich stoc%s they?re going to !uy$ It is a process of e.amining %ey ratios that sho* the current *orth of a stoc% an" the recent performance of a company$ 9un"amenta( ana(ysis is use" to "etermine the amount of money a company can ma%e an" the %in" of earnings an in-estor can e.pect$ 9uture earnings may !e su!ject to interpretation !ut goo" earning histories create confi"ence among in-estors$ &he stoc% prices may increase an" the "i-i"en"s may pay out$ Stoc% mar%et ana(ysts "etermine *hether a company is meeting its e.pecte" gro*th !y e.amining the earnings that are reporte" !y the company on a regu(ar !asis$ If the company "oesn?t meet its e.pecte" gro*th) the prices of its stoc%s usua((y e.perience a "o*nturn$ &here are a (ot of too(s that are use" to "etermine the earnings an" the -a(ue of a company on the stoc% mar%et$ Most of these too(s re(y on the financia( statements re(ease" !y the company$ 3etai(s a!out the -a(ue of a company *hich inc(u"e competiti-e a"-antages an" o*nership ratios !et*een the management an" the outsi"e in-estors can !e re-ea(e" through further fun"amenta( ana(yses$

=*nda#ental anal!$i$ i$ for t"e rational #an &o ma%e financia( forecasts &o con"uct a company stoc% -a(uation & pre"ict its pro!a!(e price e-o(ution &o ma%e a projection on its !usiness performance
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 &o e-a(uate its management an" ma%e interna( !usiness "ecisions &o ca(cu(ate its cre"it ris%

Tec"nical Anal!$i$
&he art an" science of e.amining stoc% chart "ata an" pre"icting future stoc% mar%et mo-ements is ca((e" technica( ana(ysis$ &his sty(e of ana(ysis is use" !y in-estors *ho are often concerne" a!out the nature an" the -a(ue of the companies *here they tra"e their stoc%s in$ &he ho("ings are usua((y short-term since the in-estors "rop the stoc%s once they reach their projecte" profit$ &he !e(ief that stoc% prices mo-e in pre"icta!(e patterns is the !asis for technica( ana(ysis$ &he factors that inf(uence the mo-ement of the price are suppose"(y ref(ecte" in the stoc% mar%et *ith great efficiency$ &hese factors inc(u"e company performance) economic status) an" natura( "isasters$ &he efficiency) *hen coup(e" *ith historica( tren"s) pro"uces mo-ements that can !e ana(y;e" an" app(ie" to the future mo-ements of the stoc% mar%et$ Because the fun"amenta( information a!out the potentia( gro*th of a company is not ta%en into account) technica( ana(ysis is not inten"e" for (ong-term in-estments$ &ra"es are entere" an" e.ite" at precise times so technica( ana(ysts nee" to spen" a (ot of time *atching the mo-ements of the stoc% mar%et$ In-estors can ta%e a"-antage of !oth ups*ings an" "o*ns*ings in price !y going either (ong or short$ In the e-ent that the mar%et "oesn?t mo-e as e.pecte") the (osses can !e (imite" !y stop-(oss or"ers$ 1un"re"s of stoc% patterns ha-e !een "e-e(ope" o-er time$ Most of these patterns re(y on the !asic concepts of 6support7 an" 6resistance$7 &he (e-e( *here "o*n*ar" prices are e.pecte" to rise from is ca((e" the support *hi(e the (e-e( *here the up*ar" prices are

42

e.pecte" to reach !efore fa((ing again is ca((e" the resistance$ Bnce they hit the support or the resistance (e-e(s) the prices ten" to !ounce$

6al*e Added Ser+ice$

4 I Ser-ice 3es% for persona(i;e" ,ssistance 3e"icate" Bff(ine 2+uity 3ea(ing 3es% Bn(ine 2+uity &ra"ing P(atform 4 I In-estment ,"-isory 3es% P,4 car" ,ssistance Support for Ban%ing & PIS ,ccount Portfo(io Management) Mutua( 9un") IBP Ser-ices

&raining, training program can ser-e a range of "i-erse purposes) an" organi;ations initiate training programs for many "ifferent reasons$ Bne of the strongest nee" of training is to respon" to cha((enges presente" !y ne* techno(ogy$ 'ustomer e(ationship Management training at ,nge( Bro%ing he(pe" us to meet the cha((enges in current mar%et scenario$ :e came to %no* a!out maintaining (ong (asting customer re(ationship$ :e *ere co-ere" !y Moti-ationa( speeches !y Boar" of "irectors) Pro"uct an" ser-ices) o(e p(ays) Brain storming) Scrip "esigning) Bac% office) 3ifferent "epartments at ,nge( an" the *ay they e.ecute their tas%s) esearch an" ,"-isory) :ea(th management ser-ices) <a(ue a""e" ser-ices an" hea(thy "iscussions ):hich are as fo((o*s in "etai(#

43

IMPORTANCE and NEE&S O= TRAINING

Bptimum Qti(i;ation of 1uman esources 8 &raining he(ps in optimi;ing the uti(i;ation of human resource that further he(ps the emp(oyee to achie-e the organi;ationa( goa(s as *e(( as their in"i-i"ua( goa(s$ 3e-e(opment of 1uman esources 8 &raining he(ps to pro-i"e an opportunity an" !roa" structure for the "e-e(opment of human resources? technica( an" !eha-iora( s%i((s in an organi;ation$ It a(so he(ps the emp(oyees in attaining persona( gro*th$ 3e-e(opment of s%i((s of emp(oyees 8 &raining he(ps in increasing the jo! %no*(e"ge an" s%i((s of emp(oyees at each (e-e($ It he(ps to e.pan" the hori;ons of human inte((ect an" an o-era(( persona(ity of the emp(oyees$

Pro"ucti-ity 8 &raining he(ps in increasing the pro"ucti-ity of the emp(oyees that he(ps the organi;ation further to achie-e its (ong-term goa($ &eam spirit 8 &raining he(ps in incu(cating the sense of team *or%) team spirit) an" inter-team co((a!orations$ It he(ps in incu(cating the ;ea( to (earn *ithin the emp(oyees$

Brgani;ation 'u(ture 8 &raining he(ps to "e-e(op an" impro-e the organi;ationa( hea(th cu(ture an" effecti-eness$ It he(ps in creating the (earning cu(ture *ithin &he organi;ation$ Brgani;ation '(imate 8 &raining he(ps !ui("ing the positi-e perception an" fee(ing a!out the organi;ation$ &he emp(oyees get these fee(ings from

44

(ea"ers) su!or"inates) an" peers$ Jua(ity 8 &raining he(ps in impro-ing upon the +ua(ity of *or% an" *or%(ife$ 1ea(thy *or%-en-ironment 8 &raining he(ps in creating the hea(thy *or%ing en-ironment$ It he(ps to !ui(" goo" emp(oyee) re(ationship so that in"i-i"ua( goa(s a(igns *ith organi;ationa( goa($ 1ea(th an" Safety 8 &raining he(ps in impro-ing the hea(th an" safety of the organi;ation thus pre-enting o!so(escence$ Mora(e 8 &raining he(ps in impro-ing the mora(e of the *or% force$ Image 8 &raining he(ps in creating a !etter corporate image$ Profita!i(ity 8 &raining (ea"s to impro-e" profita!i(ity an" more positi-e attitu"es to*ar"s profit orientation$ &raining ai"s in organi;ationa( "e-e(opment i$e$ Brgani;ation gets more effecti-e "ecision ma%ing an" pro!(em so(-ing$ It he(ps in un"erstan"ing an" carrying out organisationa( po(icies &raining he(ps in "e-e(oping (ea"ership s%i((s) moti-ation) (oya(ty) !etter attitu"es) an" other aspects that successfu( *or%ers an" managers usua((y "isp(ay$

METHO&S O= TRAINING( ) &he most *i"e(y use" metho"s of training use" !y organi;ations are c(assifie" into t*o categories# Bn-the-Jo! &raining & Bff-the-Jo! &raining$ ON)THE) OB TRAINING is gi-en at the *or% p(ace !y superior in re(ati-e(y short perio" of time$ &his type of training is cheaper & (ess timeconsuming$ &his training can !e imparte" !y !asica((y four metho"s# 45

Coac"ing is (earning !y "oing$ In this) the superior gui"es his su!-or"inates & gi-es him/her jo! instructions$ &he superior points out the mista%es & gi-es suggestions for impro-ement$ o. Rotation( ) In this metho") the trainees mo-e from one jo! to another) so that he/she shou(" !e a!(e to perform a(( types of jo!s$ 2$g$ In !an%ing in"ustry) emp(oyees are traine" for !oth !ac%-en" & front-en" jo!s$ In case of emergency) (a!senteeism or resignation)) any emp(oyee *ou(" !e a!(e to perform any type of jo!$ O== THE OB TRAINING( ) is gi-en outsi"e the actua( *or% p(ace$ Lect*re$FConference$() &his approach is *e(( a"apte" to con-ey specific information) ru(es) proce"ures or metho"s$ &his metho" is usefu() *here the information is to !e share" among a (arge num!er of trainees$ &he cost per trainee is (o* in this metho"$ =il#$( ) can pro-i"e information & e.p(icit(y "emonstrate s%i((s that are not easi(y presente" !y other techni+ues$ Motion pictures are often use" in conjunction *ith 'onference) "iscussions to c(arify & amp(ify those points that the fi(m emphasi;e"$ Si#*lation E;erci$e( ) ,ny training acti-ity that e.p(icit(y p(aces the trainee in an artificia( en-ironment that c(ose(y mirrors actua( *or%ing con"itions can !e consi"ere" a Simu(ation$ Simu(ation acti-ities inc(u"e case e.periences) e.perientia( e.ercises) -esti!u(e training) management games & ro(e-p(ay$ Ca$e$( ) present an in "epth "escription of a particu(ar pro!(em an emp(oyee might encounter on the jo!$ &he emp(oyee attempts to fin" an" ana(y;e the pro!(em) e-a(uate a(ternati-e courses of action & "eci"e *hat course of action *ou(" !e most satisfactory$ E;'eriential E;erci$e$( ) are usua((y short) structure" (earning e.periences *here in"i-i"ua(s (earn !y "oing$ 9or instance) rather than ta(%ing a!out inter-persona( conf(icts & ho* to "ea( *ith them) an e.perientia( e.ercise cou(" !e use" to create a conf(ict situation *here emp(oyees ha-e to e.perience a conf(ict persona((y & *or% out its so(utions$
46

6e$ti.*le Training# - 2mp(oyees (earn their jo!s on the e+uipment they *i(( !e using) !ut the training is con"ucte" a*ay from the actua( *or% f(oor$ :hi(e e.pensi-e) <esti!u(e training a((o*s emp(oyees to get a fu(( fee( for "oing tas% *ithout rea( *or(" pressures$ ,""itiona((y) it minimi;es the pro!(em of transferring (earning to the jo!$ Role Pla!( ) Its just (i%e acting out a gi-en ro(e as in a stage p(ay$ In this metho" of training) the trainees are re+uire" to enact "efine" ro(es on the !asis of ora( or *ritten "escription of a particu(ar situation$ Manage#ent Ga#e$( ) &he game is "e-ise" on a mo"e( of a !usiness situation$ &he trainees are "i-i"e" into groups *ho represent the management of competing companies$ &hey ma%e "ecisions just (i%e these are ma"e in rea(-(ife situations$ 3ecisions ma"e !y the groups are e-a(uate" & the (i%e(y imp(ications of the "ecisions are fe" !ac% to the groups$ &he game goes on in se-era( roun"s to ta%e the time "imension into account$ In)Ba$ket E;erci$e# - ,(so %no*n as In-tray metho" of training$ &he trainee is presente" *ith a pac% of papers & fi(es in a tray containing a"ministrati-e pro!(ems & is as%e" to ta%e "ecisions on these pro!(ems & are as%e" to ta%e "ecisions on these *ithin a stipu(ate" time$ &he "ecisions ta%en !y the trainees are compare" *ith one another$ &he trainees are pro-i"e" fee"!ac% on their performance$ RECOMMEN&ATIONS > CONCLUSION( ) 4o "ou!t &raining is a -ery po*erfu( too( for the smooth functioning of the organi;ation) !ut it nee"s to !e use" *ith care in or"er to "eri-e a(( the !enefits$ 1ere are $e+en recommen"ations for getting the !est out of this too(# 0. 0earn a!out the nee"s an" proficiency of each an" e-ery emp(oyee !efore an organi;ation in-ests its effort) time & money on training$ Its !etter to i"entify the nee"s & shortcomings in an emp(oyee !efore actua((y imparting training to him/her$ 5. 2.perience" & s%i((e" trainer) *ho possesses goo" amount of %no*(e"ge & un"erstan"ing a!out the organi;ationMs o!jecti-es) in"i-i"ua( a!i(ities & the present en-ironment) shou(" gi-e training$
47

7. ,cti-e participation from the trainees shou(" !e encourage"$ &here shou(" !e a t*o-*ay communication !et*een the trainer & trainee$ 8. 9ee"!ac% shou(" !e ta%en from the trainees after the training is o-er) so that the organi;ation comes to %no* a!out the "eficiencies in the training program & a(so suggestions to impro-e upon the same$ 9. 9ocus of training shou(" !e on priority "e-e(opment nee"s an" to pro"uce strong moti-ation to !ring change in emp(oyees$ G. &he cost incurre" on the training program shou(" not e.cee" its !enefits$ H. &he metho" or type of training shou(" !e -ery cautious(y se(ecte" !y the organi;ation "epen"ing upon the organi;ationsM resources & an emp(oyeeMs in"i-i"ua( nee" for training$ &hus) training is a -ita( too( to cope up *ith the changing nee"s & techno(ogies) & e-er-changing en-ironment$ It !enefits !oth the organi;ation as *e(( as the emp(oyees$ Training ado'ted .! *$ at Angel) :e a"opte" a proce"ura( training to e.ecute our gi-en tas%s$, proce"ure is a se+uence of steps that must !e fo((o*e" to accomp(ish a tas%$ &hese steps may !e re+uire a certain (e-e( of %no*(e"ge or ha-e menta( or physica( s%i((s associate" *ith them$ , proce"ure may !e (inear) that is) progress from one step to the ne.t unti( the tas% is comp(ete") or a proce"ure may ha-e one or more "ecision points *here the stu"ent *i(( ha-e to "eci"e *hich !ranch of the proce"ure to fo((o* ne.t$ 9or short) simp(e) (inear proce"ures) the fo((o*ing metho" of e.p(anation an" "emonstration is recommen"e"# a$ &he instructor "emonstrates the entire proce"ure an" e.p(ains each step as it is "one$ !$ &he instructor repeats the "emonstration !ut has the trainee e.p(ain *hat actions are occurring$ c$ &he trainee "emonstrates the proce"ure an" e.p(ains *hat he/she is "oing
48

at each step$ "$ &he trainee "emonstrates the proce"ure again so that the instructor can chec% for fu(( mastery$

&he instructor continues this Sprogressi-e partsS approach unti( the entire proce"ures is e.p(aine"$ It is sometimes appropriate to com!ine se-era( simp(er steps "uring the training or a""ress a more comp(e. step in"i-i"ua((y !efore com!ining it *ith the entire training$ 9or proce"ures that ha-e "ecision points) an o-er-ie* of the entire proce"ure is a goo" starting point$ ,fter that the proce"ure shou(" !e !ro%en up into segments for further instruction$ &he "ecision points *ithin a proce"ure are goo" !rea% points for the segments$ ,n instructor can ta(% a!out the se+uence of steps prior a "ecision point) or the steps !et*een "ecision points$ 3epen"ing upon *hether the segments are simp(e or comp(e.) the metho"s out(ine" a!o-e can !e use" for each segment$ &he information nee"e" to ma%e the "ecisions a(so nee"s to !e co-ere" at the appropriate point in the (esson$ 9or more comp(e. "ecision points) it is recommen"e" that a(( segments !e e.p(aine" an" "emonstrate" !efore "iscussing the "ecision points$ It is easier for a person to ma%e a more comp(e. "ecision *hen they un"erstan" the steps that ma%e up the a(ternati-e !ranches of the proce"ure$

Training Under &ifferent &e'art#ent) :e ha-e !een traine" un"er fo((o*ing "epartments0)Co##oditie$)
'ommo"ity mar%ets are mar%ets *here ra* or primary pro"ucts are e.change"$ &hese ra* commo"ities are tra"e" on
49

regu(ate" commo"ities e.changes) in *hich they are !ought an" so(" in stan"ar"i;e" contracts$ 'ommo"ities are easy to Qn"erstan" an" ha-e positi-e corre(ation *ith Inf(ation$ &he 'ommo"ity mar%et are g(o!a( in nature ) hence (ess ris% for manipu(ation$ 2-ery commo"ity ha-e separate mar%et in Itse(f an" hence many such mar%et is simu(ate" at one sing(e screen$&he tren" in one commo"ity not necessari(y ha-e corre(ation *ith the tren" of other$ 1istorica((y 'ommo"ities ha-e outperforme" the Stoc% Mar%et $ 3i-ersification through a "ifferent asset c(ass$ 0o* Margins 8 GT - F0T on(y

Co##oditie$ Seg#ent ,i$e AMCI > NC&EIB *etals .ils "nergy %ofts Agri. omm. 5o(" 'ru"e pa(m Bi( Brent cru"e 'otton Si(-er Mustar" See" S*eet 'ru"e Sugar see" Stee( 'astor oi( 9urnace oi( 5ur Bean 'opper Jeera Uinc 'hi(i 4ic%e( &urmeric 0ea" & etc$ ,(uminium

Pepper 5uar Soy

50

Pro.le#$ faced at t"e ti#e of training) &hough *e successfu((y e.ecute" our tas%s in our training)*e ha" to face fe* pro!(ems a(so an" they areF-'(ient information sheet *as not up"ate")most of them ha" !een sho*n *ith *rong information$ 2-Most of the c(ients *ere not gi-ing appointments an" some of them "i" not e-en ta(% on phone$ D-Many of the time *hen *e *ent to meet the c(ients *ith *hom appointments *as fi.e")after reaching the c(ient?s p(ace they sai" *e are not a-ai(a!(e an" not e-en intereste"$ E-, !ig pro!(em *as transportation)Most of the stu"ents are out of the state an" not ha-ing -ehic(e) :e face" (ot many pro!(ems to meet the c(ients at "ifferent "ifferent corners of ,hme"a!a"$ G-,t ange( *hi(e ca((ing to the customers)it happene" that *e "i" not ha-e sufficient phone a-ai(a!(e $ L-&raining room *as pre-occupie" !y fu(( time joinies)*e face" this pro!(em on(y 2 to D times$ @-<aria!(e strategy to e.ecute the tas%s$ I-:astage of time !ecause of a poor time management !y ,nge($

S*gge$tion$ to I#'ro+e) F-&here shou(" !e a fi.e" strategy for SIP training$ 2-&eam *or% shou(" !e there$ D-3ata shou(" !e up to "ate) so that *e can sa-e the time$ E-Participation shou(" !e there$ G-:e shou(" uti(i;e e-ery secon"$ L-&he MIS Proce"ure of company *as not proper$ @-&rainer an" trainee !oth shou(" reach on time at the pre"eci"e" p(ace$
51

I-2-ery tas% shou(" !e proper(y p(anne"$ 9-&he trainee shou(" try to (earn ho* to "ea( *ith time management$ F0-&he company shou(" ha-e proper refreshment faci(ity for SIP stu"ents$

Pa$t Perfor#ance

Our Offerings
B us ines s des cription
Advis ory & execution services for the entire gamut of financial services

C ore competencies

Advis ory services powered by world-class research E xecution backed by cutting edge technology and service truly personalized
E quities & Derivative broking # oan products C ommodities& C urrency broking fi!ed Deposits P ortfolio Management services "PO

Mutual unds

"nsurance

S ervice offerings

Depository S ervices

Margin unding

52

O*r inten$i+e re$earc" 'roce$$ In"ustry *ise specia(i;e" team Bottom-up approach# I"entifying un"er -a(ue" stoc% *ith soun" management &op -"o*n ,pproach# i"entifying promising sector & then companies *ith goo" -a(uations 'ompany -isits an" interaction *ith top & secon" (ine manager &horough ana(ysis of company?s financia( "ata ) promise -s performance & in"ustry tren"s 2stimates for future years? earnings !ase" on in"ustry tren"s & company !usiness p(ans O*r Re$earc" > Ad+i$or! Prod*ct$ Market o*tlook Pro-i"es price-sensiti-e information just !efore opening ana(ysis its impact on the mar%et in terms of # =ey corporate "e-e(opment Po(icy announcement 5eo-po(itica( ne*s & -ie*s Tec"nical Anal!$i$ ,na(ysis tra"ing patterns an" a -ie* on the mar%et position of %ey stoc%s/sectors for the ne.t tra"ing session Short term (F-G "ays) & me"ium term (F0-20 "ays) -ie*s &rac%s in"i-i"ua( scrip) the sense. & 4ifty & other in"ices &eri+ati+e$ anal!$i$ re'ort 9II acti-ity in the 9&B Segment 'hange in open mar%et
53

!e(( an"

 Put ca(( ratio 'ost of carrying cost In"e.- !ase" "eri-ati-e pro"ucts

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Unique Online T rading products customized to suit different Investment / T rading needs

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Uni4*e Online Trading Prod*ct$ C*$to#i<ed to $*it different in+e$t#entFTrading need$ Angel In+e$tor Qser-frien"(y !ro*ser for in-estors 2asy on(ine tra"ing p(atform :or%s in pro.y an" fire*a(( system set up Integrate" Bac% office# ,ccess account information 8 anytime) any*here Streaming +uotes efresh static rates *hen re+uire"

Mu(tip(e e.changes on sing(e screen Bn(ine fun" transfer faci(ity Angel Trade Qser-frien"(y !ro*ser-!ase" on(ine tra"ing p(atform$ Streaming +uotes 'an !e use" in pro.y as *e(( as fire*a(( en-ironments$
54

 ,"-antage to access your account from any*here$ Angel &iet ,pp(ication-!ase" p(atform for "ay tra"ers 1i-spee" tra"ing termina( on your "es%top Streaming +uotes for rea( time rate up"ates Mu(tip(e e.changes on sing(e screen Bn(ine fun" transfer faci(ity Integrate" Bac% office# ,ccess account information 8 anytime) any*here Angel An!,"ere ,pp(ication-!ase" p(atform for "ay tra"ers &ra"ing !ase" on historica( charts an" technica( too(s Streaming +uotes for rea( time rate up"ates Bn(ine fun" transfer faci(ity Integrate" Bac% office# ,ccess account information 8 anytime) any*here Back)Office Online client detail$ incl*de$ 0e"ger Ba(ance 'ash 3eposits *ith ,nge( Securities 1o("ings 'harges (e-ie"/Pai" in the c(ient?s account 0ast auction/c(ose-outs offere" 3P 1o("ing for the (ast D transactions

55

Portfolio Manage#ent Ser+ice$ Manage" !y our prominent 9un" Manager *ho are regu(ar(y fetche" !y &< me"ia for their -ie*s on stoc%s Qn"erstan"ing c(ient?s ris% & return profi(e Bffering the right !(en" of sector an" stoc% e.posures 5i-ing "e"icate" in-estement ,"-isors 5i-ing a choice of "ifferent schemes to suit e-ery in"i-i"ua( in-estor preferences 'atering to in"i-i"ua(s) 1Q9s) 'orporate) 4 Is) &rusts

Angel C*rrenc! =*t*re 'omprehensi-e 'o-erage on currencies eports co-ering in-"epth fun"amenta(s of the currencies 0atest economics "ata re(eases *ith their (i%e(y impact) a(ong *ith 6&echnica( 0e-e(s7 'omprehensi-e reports on currencies i"ea((y suite" for any in-estors / &ra"er

&e'o$itor! Ser+ice$ 4o physica( instruction re+uire" for the c(ient?s se(( o!(igations 0o*est transaction charges in the country ,cceptances & e.ecution of instruction on fa. , com!ine" month(y statement 6Bi(( &ransaction$ 1o("ing cum 0e"ger

2fficient P(e"ge Mechanism

56

Angel gold Persona(i;e" in-estment a"-isory Portfo(io estructuring an" continuous monitoring 5ui"ance e.perience" research team Perio"ic 5roup meeting *ith in-estors $

Pre)Paid Brokerage Uero ,ccount opening charges ,ttracti-e Bro%erage rates 9ree 3P ,M' for F year ,ssure" gifts *orth thousan"s *ith e-ery account 2asy an" fast recharge 9ree 9inancia( in-estment ,pp(ication *ith e-ery account

S'eciali<ed Prod*ct$
MARGIN =UN&ING faci(ity to a((o* c(ients to ta%e higher e.poser instant (i+ui"ity for c(ients margin is "eposite" in cash as *e(( as co((atera(s 2na!(ing c(ients gra! 2arning Bpportunity$

57

6ALUE A&&E& SER6ICES NRI Ser+ice$ 4 I Ser-ices 3es% for persona(i;e" ,ssistance$ 3e"icate" off(ine 2+uity 3ea(ing 3es%$ Bn(ine 2+uity "ea(ing 3es% 4 I In-estment ,"-isory 3es% P,4 'ar" ,ssistance Support for !an%ing-PIS ,ccounts Portfo(io Management) Mutua( 9un") IPB ser-ices$

INSURANCE ANGEL O==ERS Pro"ucts to meet the o!jecti-es of ris% co-erage $in-estment an" ta. p(anning$ ,ssessment of your insurance nee"s after proper ris% profi(ing$ , *i"e array of in"i-i"ua( (ife co-er p(ans to meet your protection) sa-ings)an" retirement nee"s$

M*t*al f*nd$ ,n integrate" p(atform for on(ine /off(ine mutua( fun"s &ie-up *ith a(( major ,M'S

58

 3e"icate e(ationship Manager for Business Partners 2.c(usi-e M9 esearch eports !y ange(W"ai(y)*ee%(y)month(y)mutua( fun" reportsX$ Loan$- IPO and fi;ed &e'o$it$ Pro"ucts "istri!ute" !y ange( inc(u"e Qnsecure" (oans persona(/!usiness (oans against properties Secure" (oans$ home (oans/(oan against properties (oan against securities/go(") IPB-3istri!ution ) ,"-isory an" he(p "es% ) 9i.e" 3eposits )41B term 3eposits$ Ri$k #anage#ent at angel ,n efficient ris% management system *hich ena!(es the customer to effecti-e(y monitor the positions$ &he c(ient report can !e accesse" from any p(ace an" gi-es categorica( "isp(ay of the (e"ger !a(ance "eposits an" ho("ings$

Prod*ct$ > Ser+ice$

59

Our Offerings
B us ines s des cription
Advis ory & execution services for the entire gamut of financial services

C ore competencies

Advis ory services powered by world-class research E xecution backed by cutting edge technology and service truly personalized
E quities & Derivative broking # oan products C ommodities& C urrency broking fi!ed Deposits P ortfolio Management services "PO

Mutual unds

"nsurance

S ervice offerings

Depository S ervices

Margin unding

O*r inten$i+e re$earc" 'roce$$ In"ustry *ise specia(i;e" team

60

 Bottom-up approach# I"entifying un"er -a(ue" stoc% *ith soun" management &op -"o*n ,pproach# i"entifying promising sector & then companies *ith goo" -a(uations 'ompany -isits an" interaction *ith top & secon" (ine manager &horough ana(ysis of company?s financia( "ata ) promise -s performance & in"ustry tren"s 2stimates for future years? earnings !ase" on in"ustry tren"s & company !usiness p(ans O*r Re$earc" > Ad+i$or! Prod*ct$ Market o*tlook Pro-i"es price-sensiti-e information just !efore opening ana(ysis its impact on the mar%et in terms of # =ey corporate "e-e(opment Po(icy announcement 5eo-po(itica( ne*s & -ie*s Tec"nical Anal!$i$ ,na(ysis tra"ing patterns an" a -ie* on the mar%et position of %ey stoc%s/sectors for the ne.t tra"ing session Short term (F-G "ays) & me"ium term (F0-20 "ays) -ie*s &rac%s in"i-i"ua( scrip) the sense. & 4ifty & other in"ices &eri+ati+e$ anal!$i$ re'ort 9II acti-ity in the 9&B Segment 'hange in open mar%et Put ca(( ratio 'ost of carrying cost
61

!e(( an"

 In"e.- !ase" "eri-ati-e pro"ucts

E)Broking
E$broking
Unique Online T rading products customized to suit different Investment / T rading needs

ngel Investor ngel Trade ngel !iet ngel nywhere

Uni4*e Online Trading Prod*ct$ C*$to#i<ed to $*it different in+e$t#entFTrading need$ Angel In+e$tor Qser-frien"(y !ro*ser for in-estors 2asy on(ine tra"ing p(atform :or%s in pro.y an" fire*a(( system set up Integrate" Bac% office# ,ccess account information 8 anytime) any*here Streaming +uotes efresh static rates *hen re+uire"

Mu(tip(e e.changes on sing(e screen Bn(ine fun" transfer faci(ity Angel Trade Qser-frien"(y !ro*ser-!ase" on(ine tra"ing p(atform$ Streaming +uotes 'an !e use" in pro.y as *e(( as fire*a(( en-ironments$ ,"-antage to access your account from any*here$ Angel &iet
62

 ,pp(ication-!ase" p(atform for "ay tra"ers 1i-spee" tra"ing termina( on your "es%top Streaming +uotes for rea( time rate up"ates Mu(tip(e e.changes on sing(e screen Bn(ine fun" transfer faci(ity Integrate" Bac% office# ,ccess account information 8 anytime) any*here Angel An!,"ere ,pp(ication-!ase" p(atform for "ay tra"ers &ra"ing !ase" on historica( charts an" technica( too(s Streaming +uotes for rea( time rate up"ates Bn(ine fun" transfer faci(ity Integrate" Bac% office# ,ccess account information 8 anytime) any*here Back)Office Online client detail$ incl*de$ 0e"ger Ba(ance 'ash 3eposits *ith ,nge( Securities 1o("ings 'harges (e-ie"/Pai" in the c(ient?s account 0ast auction/c(ose-outs offere" 3P 1o("ing for the (ast D transactions

Portfolio Manage#ent Ser+ice$

63

 Manage" !y our prominent 9un" Manager *ho are regu(ar(y fetche" !y &< me"ia for their -ie*s on stoc%s Qn"erstan"ing c(ient?s ris% & return profi(e Bffering the right !(en" of sector an" stoc% e.posures 5i-ing "e"icate" in-estement ,"-isors 5i-ing a choice of "ifferent schemes to suit e-ery in"i-i"ua( in-estor preferences 'atering to in"i-i"ua(s) 1Q9s) 'orporate) 4 Is) &rusts

Angel C*rrenc! =*t*re 'omprehensi-e 'o-erage on currencies eports co-ering in-"epth fun"amenta(s of the currencies 0atest economics "ata re(eases *ith their (i%e(y impact) a(ong *ith 6&echnica( 0e-e(s7 'omprehensi-e reports on currencies i"ea((y suite" for any in-estors / &ra"er

&e'o$itor! Ser+ice$ 4o physica( instruction re+uire" for the c(ient?s se(( o!(igations 0o*est transaction charges in the country ,cceptances & e.ecution of instruction on fa. , com!ine" month(y statement 6Bi(( &ransaction$ 1o("ing cum 0e"ger

2fficient P(e"ge Mechanism

64

Angel gold Persona(i;e" in-estment a"-isory Portfo(io estructuring an" continuous monitoring 5ui"ance e.perience" research team Perio"ic 5roup meeting *ith in-estors $

Pre)Paid Brokerage Uero ,ccount opening charges ,ttracti-e Bro%erage rates 9ree 3P ,M' for F year ,ssure" gifts *orth thousan"s *ith e-ery account 2asy an" fast recharge 9ree 9inancia( in-estment ,pp(ication *ith e-ery account

S'eciali<ed Prod*ct$
MARGIN =UN&ING faci(ity to a((o* c(ients to ta%e higher e.poser instant (i+ui"ity for c(ients margin is "eposite" in cash as *e(( as co((atera(s 2na!(ing c(ients gra! 2arning Bpportunity$

6ALUE A&&E& SER6ICES NRI Ser+ice$

65

 4 I Ser-ices 3es% for persona(i;e" ,ssistance$ 3e"icate" off(ine 2+uity 3ea(ing 3es%$ Bn(ine 2+uity "ea(ing 3es% 4 I In-estment ,"-isory 3es% P,4 'ar" ,ssistance Support for !an%ing-PIS ,ccounts Portfo(io Management) Mutua( 9un") IPB ser-ices$

INSURANCE ANGEL O==ERS Pro"ucts to meet the o!jecti-es of ris% co-erage $in-estment an" ta. p(anning$ ,ssessment of your insurance nee"s after proper ris% profi(ing$ , *i"e array of in"i-i"ua( (ife co-er p(ans to meet your protection) sa-ings)an" retirement nee"s$

M*t*al f*nd$ ,n integrate" p(atform for on(ine /off(ine mutua( fun"s &ie-up *ith a(( major ,M'S 3e"icate e(ationship Manager for Business Partners

66

 2.c(usi-e M9 esearch eports !y ange(W"ai(y)*ee%(y)month(y)mutua( fun" reportsX$ Loan$- IPO and fi;ed &e'o$it$ Pro"ucts "istri!ute" !y ange( inc(u"e Qnsecure" (oans persona(/!usiness (oans against properties Secure" (oans$ home (oans/(oan against properties (oan against securities/go(") IPB-3istri!ution ) ,"-isory an" he(p "es% ) 9i.e" 3eposits )41B term 3eposits$ Ri$k #anage#ent at angel ,n efficient ris% management system *hich ena!(es the customer to effecti-e(y monitor the positions$ &he c(ient report can !e accesse" from any p(ace an" gi-es categorica( "isp(ay of the (e"ger !a(ance "eposits an" ho("ings$

Ind*$tr! Anal!$i$
Ind*$tr! Anal!$i$ at Indian le+el 0. INTRO&UCTION TO IN&IAN MAR%ETS
&12 2 , 2 &:B &RP2S B9 M, =2&S I4 I43I, MONEJ MAR%ET
67

Money mar%et is a mar%et for "e!t securities that pay off in the short term usua((y (ess than one year) for e.amp(e the mar%et for 90-"ays treasury !i((s$ &his mar%et encompasses the tra"ing an" issuance of short term non e+uity "e!t instruments inc(u"ing treasury !i((s) commercia( papers) !an%ers acceptance) certificates of "eposits) etc$ In other *or" *e can a(so say that the Money Mar%et is !asica((y concerne" *ith the issue an" tra"ing of securities *ith short term maturities or +uasi-money instruments$ &he Instruments tra"e" in the money-mar%et are &reasury Bi((s) 'ertificates of 3eposits ('3s)) 'ommercia( Paper ('Ps)) Bi((s of 2.change an" other such instruments of short-term maturities (i$e$ not e.cee"ing F year *ith regar" to the origina( maturity)

CAPITAL MAR%ET
'apita( mar%et is a mar%et for (ong-term "e!t an" e+uity shares$ In this mar%et) the capita( fun"s comprising of !oth e+uity an" "e!t are issue" an" tra"e"$ &his a(so inc(u"es pri-ate p(acement sources of "e!t an" e+uity as *e(( as organi;e" mar%ets (i%e stoc% e.changes$

Ca'ital #arket can .e di+ided into Pri#ar! and Secondar! Market$.

PRIMARJ MAR%ET
In the primary mar%et) securities are offere" to pu!(ic for su!scription for the purpose of raising capita( or fun"$ Secon"ary mar%et is an e+uity tra"ing a-enue in *hich a(rea"y e.isting/pre- issue" securities are tra"e" amongst in-estors$ Secon"ary mar%et cou(" !e either auction or "ea(er mar%et$ :hi(e stoc% e.change is the part of an auction mar%et) B-er-the-'ounter (B&') is a part of the "ea(er mar%et$

SECON&ARJ MAR%ET
Secon"ary Mar%et refers to a mar%et *here securities are tra"e" after !eing initia((y offere" to the pu!(ic in the primary mar%et an"/or (iste" on the Stoc% 2.change$ Majority of the tra"ing is "one in the secon"ary mar%et$ Secon"ary mar%et comprises of e+uity mar%ets an" the "e!t mar%ets$ 9or the genera( in-estor) the secon"ary mar%et pro-i"es an efficient p(atform for tra"ing of his securities$ 9or the management of the company) Secon"ary e+uity mar%ets ser-e as a monitoring an" contro( con"uitY!y faci(itating -a(ue-enhancing contro( acti-ities) ena!(ing imp(ementation of incenti-e-!ase" management contracts) an" aggregating information (-ia price "isco-ery) that gui"es management "ecisions$

&ifference .et,een t"e 'ri#ar! #arket and t"e $econdar! #arket

68

In the primary mar%et) securities are offere" to pu!(ic for su!scription for the purpose of raising capita( or fun"$ Secon"ary mar%et is an e+uity tra"ing a-enue in *hich a(rea"y e.isting/pre- issue" securities are tra"e" amongst in-estors$ Secon"ary mar%et cou(" !e either auction or "ea(er mar%et$ :hi(e stoc% e.change is the part of an auction mar%et) B-er-the-'ounter (B&') is a part of the "ea(er mar%et$

Main financial 'rod*ct$Fin$tr*#ent$ dealt in t"e $econdar! #arket

E4*it!( &he o*nership interest in a company of ho("ers of its common an" preferre" stoc%$ &he -arious %in"s of e+uity shares are as fo((o*s 8 E4*it! S"are$( ,n e+uity share) common(y referre" to as or"inary share a(so represents the form of fractiona( o*nership in *hich a shareho("er) as a fractiona( o*ner) un"erta%es the ma.imum entrepreneuria( ris% associate" *ith a !usiness -enture$ &he ho("ers of such shares are mem!ers of the company an" ha-e -oting rights$ , company may issue such shares *ith "ifferentia( rights as to -oting) payment of "i-i"en") etc$ Rig"t$ I$$*eF Rig"t$ S"are$( &he issue of ne* securities to e.isting shareho("ers at a ratio to those a(rea"y he("$ Bon*$ S"are$# Shares issue" !y the companies to their shareho("ers free of cost !y capita(i;ation of accumu(ate" reser-es from the profits earne" in the ear(ier years$ Preferred StockF Preference $"are$# B*ners of these %in" of shares are entit(e" to a fi.e" "i-i"en" or "i-i"en" ca(cu(ate" at a fi.e" rate to !e pai" regu(ar(y !efore "i-i"en" can !e pai" in respect of e+uity share$ &hey a(so enjoy priority o-er the e+uity shareho("ers in payment of surp(us$ But in the e-ent of (i+ui"ation) their c(aims ran% !e(o* the c(aims of the company?s cre"itors) !on"ho("ers / "e!enture ho("ers$ C*#*lati+e Preference S"are$( , type of preference shares on *hich "i-i"en" accumu(ates if remains unpai"$ ,(( arrears of preference "i-i"en" ha-e to !e pai" out !efore paying "i-i"en" on e+uity shares$ C*#*lati+e Con+erti.le Preference S"are$( , type of preference shares *here the "i-i"en" paya!(e on the same accumu(ates) if not pai"$ ,fter a specifie" "ate) these shares *i(( !e con-erte" into e+uity capita( of the company$ Partici'ating Preference S"are( &he right of certain preference shareho("ers to participate in profits after a specifie" fi.e" "i-i"en" contracte" for is pai"$ Participation right is (in%e" *ith the +uantum of "i-i"en" pai" on the e+uity shares o-er an" a!o-e a particu(ar specifie" (e-e($ Sec*rit! Recei't$( Security receipt means a receipt or other security) issue" !y a securitisation company or reconstruction company to any +ua(ifie" institutiona( !uyer

69

pursuant to a scheme) e-i"encing the purchase or ac+uisition !y the ho("er thereof) of an un"i-i"e" right) tit(e or interest in the financia( asset in-o(-e" in securitisation$ Go+ern#ent $ec*ritie$ AG)Sec$B( &hese are so-ereign (cre"it ris%-free) coupon !earing instruments *hich are issue" !y the eser-e Ban% of In"ia on !eha(f of 5o-ernment of In"ia) in (ieu of the 'entra( 5o-ernmentMs mar%et !orro*ing programme$ &hese securities ha-e a fi.e" coupon that is pai" on specific "ates on ha(f-year(y !asis$ &hese securities are a-ai(a!(e in *i"e range of maturity "ates) from short "ate" ((ess than one year) to (ong "ate" (upto t*enty years)$ &e.ent*re$( Bon"s issue" !y a company !earing a fi.e" rate of interest usua((y paya!(e ha(f year(y on specific "ates an" principa( amount repaya!(e on particu(ar "ate on re"emption of the "e!entures$ 3e!entures are norma((y secure"/ charge" against the asset of the company in fa-our of "e!enture ho("er$ Bond( , negotia!(e certificate e-i"encing in"e!te"ness$ It is norma((y unsecure"$ , "e!t security is genera((y issue" !y a company) municipa(ity or go-ernment agency$ , !on" in-estor (en"s money to the issuer an" in e.change) the issuer promises to repay the (oan amount on a specifie" maturity "ate$ &he issuer usua((y pays the !on" ho("er perio"ic interest payments o-er the (ife of the (oan$ &he -arious types of Bon"s are as fo((o*sKero Co*'on Bond( Bon" issue" at a "iscount an" repai" at a face -a(ue$ 4o perio"ic interest is pai"$ &he "ifference !et*een the issue price an" re"emption price represents the return to the ho("er$ &he !uyer of these !on"s recei-es on(y one payment) at the maturity of the !on"$ Con+erti.le Bond( , !on" gi-ing the in-estor the option to con-ert the !on" into e+uity at a fi.e" con-ersion price$ Co##ercial Pa'er( , short term promise to repay a fi.e" amount that is p(ace" on the mar%et either "irect(y or through a specia(i;e" interme"iary$ It is usua((y issue" !y companies *ith a high cre"it stan"ing in the form of a promissory note re"eema!(e at par to the ho("er on maturity an" therefore) "oesn?t re+uire any guarantee$ 'ommercia( paper is a money mar%et instrument issue" norma((y for a tenure of 90 "ays$

Trea$*r! Bill$( Short-term (up to 9F "ays) !earer "iscount security issue" !y the 5o-ernment as a means of financing its cash re+uirements$

5. SEBI
SECURITJ AN& EICHANGE BOAR& O= IN&IA

70

SEBI AN& ITS ROLE IN THE SECON&ARJ MAR%ET &he S2BI is the regu(atory authority esta!(ishe" un"er Section D of S2BI ,ct F992 to protect the interests of the in-estors in securities an" to promote the "e-e(opment of) an" to regu(ate) the securities mar%et an" for matters connecte" there*ith an" inci"enta( thereto$ Securities an" 2.change Boar" of In"ia constitute" un"er the eso(ution of the 5o-ernment of In"ia in the 3epartment of 2conomic ,ffairs 4o$F (EE)S2/IL) "ate" the F2th "ay of ,pri() F9IIH &he Boar" sha(( consist of the fo((o*ing mem!ers) name(y#1" , 'hairman 2" &*o mem!ers from amongst the officia(s of the Ministry of the 'entra( 5o-ernment "ea(ing *ith 9inance (an" a"ministration of the 'ompanies ,ct) F9GLH) 2 of F9DE 3" Bne mem!er from amongst the officia(s of Zthe eser-e Ban% 4" 9i-e other mem!ers of *hom at (east three sha(( !e the *ho(e-time mem!ers

BOMBAJ LIMITE&

STOC%

EICHANGE

O=

IN&IA

Bom!ay Stoc% 2.change 0imite" is the o("est stoc% e.change in ,sia *ith a rich heritage$ Popu(ar(y %no*n as SBS2S) it *as esta!(ishe" as S&he 4ati-e Share & Stoc% Bro%ers ,ssociationS in FI@G$ It is the first stoc% e.change in the country to o!tain permanent recognition in F9GL from the 5o-ernment of In"ia un"er the Securities 'ontracts ( egu(ation) ,ct) F9GL$ &he 2.changeMs pi-ota( an" pre-eminent ro(e in the "e-e(opment of the In"ian capita( mar%et is *i"e(y recogni;e" an" its in"e.) %"/%"0) is trac%e" *or("*i"e$ 2ar(ier an ,ssociation of Persons (,BP)) the 2.change is no* a "emutua(ise" an" corporati-e entity incorporate" un"er the pro-isions of the 'ompanies ,ct) F9GL) pursuant to the BS2 ('orporati;ation an" 3emutua(i;ation) Scheme) 200G notifie" !y the Securities an" 2.change Boar" of In"ia (S2BI)$ :ith "emutua(i;ation) the tra"ing rights an" o*nership rights ha-e !een "e-(in%e" effecti-e(y a""ressing concerns regar"ing percei-e" an" rea( conf(icts of interest$ &he 2.change is professiona((y manage" un"er the o-era(( "irection of the Boar" of 3irectors$ &he Boar" comprises eminent professiona(s) representati-es of &ra"ing Mem!ers an" the Managing 3irector of the 2.change$ &he Boar" is inc(usi-e an" is "esigne" to !enefit from the participation of mar%et interme"iaries$

71

In terms of organi;ation structure) the Boar" formu(ates (arger po(icy issues an" e.ercises o-er-a(( contro($ &he committees constitute" !y the Boar" are !roa"-!ase"$ &he "ay-to-"ay operations of the 2.change are manage" !y the Managing 3irector an" a management team of professiona(s$ &he 2.change has a nation-*i"e reach *ith a presence in EF@ cities an" to*ns of In"ia$ &he systems an" processes of the 2.change are "esigne" to safeguar" mar%et integrity an" enhance transparency in operations$ 3uring the year 200E-200G) the tra"ing -o(umes on the 2.change sho*e" ro!ust gro*th$ &he 2.change pro-i"es an efficient an" transparent mar%et for tra"ing in e+uity) "e!t instruments an" "eri-ati-es$ &he BS2Ms Bn 0ine &ra"ing System (BB0&) is a proprietary system of the 2.change an" is BS @@99-2-2002 certifie"$ &he sur-ei((ance an" c(earing & sett(ement functions of the 2.change are ISB 900F#2000 certifie"$

Bom!ay Stoc% 2.change 0imite" (BS2) *hich *as foun"e" in FI@G *ith si. !ro%ers has no* gro*n into a giant institution *ith o-er I@E registere" Bro%er-Mem!ers sprea" o-er DI0 cities across the country$ &o"ay) BS2Ms :i"e ,rea 4et*or% (:,4) connecting o-er I000 BS2 Bn(ine &ra"ing (BB0&) System &ra"er :or% Stations (&:S) is one of the (argest of its %in" in the country$ :ith a -ie* to pro-i"e efficient an" integrate" ser-ices to the in-esting pu!(ic through the mem!ers an" their associates in the operations pertaining to the 2.change) Bom!ay Stoc% 2.change 0imite" (BS2) has set up a uni+ue Mem!er Ser-ices an" 3e-e(opment to atten" to the pro!(ems of the Bro%er-Mem!ers$ Mem!er Ser-ices an" 3e-e(opment 3epartment is the sing(e point interface for interacting *ith the 2.change ,"ministration to a""ress to Mem!ersM issues$ &he 3epartment ta%es care of -arious pro!(ems an" constraints face" !y the Mem!ers in -arious pro"ucts such as 'ash) 3eri-ati-es) Internet &ra"ing) an" Processes such as &ra"ing) &echno(ogy) '(earing an" Sett(ement) Sur-ei((ance an" Inspection) Mem!ership) &raining) 'orporate Information) etc$

COMMO&ITJ EICHANGES
&here are three categories# NC&EI MCI NMCE

$
72

, !rief "escription of commo"ity e.changes are those *hich tra"e in particu(ar commo"ities) neg(ecting the tra"e of securities) stoc% in"e. futures an" options etc$ In the mi""(e of F9th century in the Qnite" States) !usinessmen !egan organi;ing mar%et forums to ma%e the !uying an" se((ing of commo"ities easier$ &hese centra( mar%etp(aces pro-i"e" a p(ace for !uyers an" se((ers to meet) set +ua(ity an" +uantity stan"ar"s) an" esta!(ish ru(es of !usiness$ ,gricu(tura( commo"ities *ere most(y tra"e" !ut as (ong as there are !uyers an" se((ers) any commo"ity can !e tra"e"$ In FI@2) a group of Manhattan "airy merchants got together to !ring chaotic con"ition in 4e* Ror% mar%et to a system in terms of storage) pricing) an" transfer of agricu(tura( pro"ucts$ In F9DD) "uring the 5reat 3epression) the 'ommo"ity 2.change) Inc$) *as esta!(ishe" in 4e* Ror% through the merger of four sma(( e.chan ges 8 the 4ationa( Meta( 2.change) the u!!er 2.change of 4e* Ror%) the 4ationa( a* Si(% 2.change) an" the 4e* Ror% 1i"e 2.change$ &he major commo"ity mar%ets are in the Qnite" =ing"om an" in the QS,$ In in"ia there are 2G recogni;e" future e.changes) of *hich there are three nationa( (e-e( mu(ti-commo"ity e.changes$ ,fter a gap of a(most three "eca"es) 5o-ernment of In"ia has a((o*e" for*ar" transactions in commo"ities through Bn(ine 'ommo"ity 2.changes) a mo"ification of tra"itiona( !usiness %no*n as ,"hat an" <ay"a <yapar to faci(itate !etter ris% co-erage an" "e(i-ery of commo"ities$ T"e t"ree e;c"ange$ are(

0. National Co##odit! > &eri+ati+e$ E;c"ange Li#ited ANC&EIB 5. M*lti Co##odit! E;c"ange of India Li#ited AMCIB 7. National M*lti)Co##odit! E;c"ange of India Li#ited ANMCEILB
,(( the e.changes ha-e !een set up un"er o-era(( contro( of 9or*ar" Mar%et 'ommission (9M') of 5o-ernment of In"ia$

73

0. National Co##odit! > &eri+ati+e$ E;c"ange Li#ited ANC&EIB

4ationa( 'ommo"ity & 3eri-ati-es 2.change 0imite" (4'32K) (ocate" in Mum!ai is a pu!(ic (imite" company incorporate" on ,pri( 2D) 200D un"er the 'ompanies ,ct) F9GL an" ha" commence" its operations on 3ecem!er FG) 200D$&his is the on(y commo"ity e.change in the country promote" !y nationa( (e-e( institutions$ It is promote" !y I'I'I Ban% 0imite") 0ife Insurance 'orporation of In"ia (0I')) 4ationa( Ban% for ,gricu(ture an" ura( 3e-e(opment (4,B, 3) an" 4ationa( Stoc% 2.change of In"ia 0imite" (4S2)$ It is a professiona((y manage" on(ine mu(ti commo"ity e.change$ 4'32K is regu(ate" !y 9or*ar" Mar%et 'ommission an" is su!jecte" to -arious (a*s of the (an" (i%e the 'ompanies ,ct) Stamp ,ct) 'ontracts ,ct) 9or*ar" 'ommission ( egu(ation) ,ct an" -arious other (egis(ations$

5. M*lti

Co##odit! E;c"ange

of

India

Li#itedAMCIB

1ea"+uartere" in Mum!ai Mu(ti 'ommo"ity 2.change of In"ia 0imite" (M'K)) is an in"epen"ent an" "e-mutu(ise" e.change *ith a permanent recognition from 5o-ernment of In"ia$ =ey shareho("ers of M'K are 9inancia( &echno(ogies (In"ia) 0t"$) State Ban% of In"ia) Qnion Ban% of In"ia) 'orporation Ban%) Ban% of In"ia an" 'anara Ban%$ M'K faci(itates on(ine tra"ing) c(earing an" sett(ement operations for commo"ity futures mar%ets across the country$ M'K starte" offering tra"e in 4o-em!er 200D an" has !ui(t strategic a((iances *ith Bom!ay Bu((ion ,ssociation) Bom!ay Meta( 2.change) So(-ent 2.tractors? ,ssociation of In"ia) Pu(ses Importers ,ssociation an" Shet%ari Sanghatana$

National M*lti)Co##odit! E;c"ange of India Li#ited ANMCEILB

4ationa( Mu(ti 'ommo"ity 2.change of In"ia 0imite" (4M'2I0) is the first "emutua(;e") 2(ectronic Mu(ti-'ommo"ity 2.change in In"ia$ Bn 2Gth Ju(y) 200F) it *as grante" appro-a( !y the 5o-ernment to organi;e tra"ing in the e"i!(e oi( comp(e.$ It has operationa(ise" from 4o-em!er 2L) 2002$ It is !eing supporte" !y 'entra( :arehousing 'orporation 0t"$) 5ujarat State ,gricu(tura( Mar%eting Boar" an" 4eptune B-erseas 0imite"$ It got its recognition in Bcto!er 2000$ 'ommo"ity e.change in In"ia p(ays an important ro(e *here the prices of any commo"ity are not fi.e") in an organi;e" *ay$ 2ar(ier on(y the !uyer of pro"uce an" its se((er in the mar%et ju"ge" upon the prices$ Bthers ne-er ha" a say$ &o"ay) commo"ity e.changes are pure(y specu(ati-e in nature$ Before "isco-ering the price) they reach to the pro"ucers) en"-users) an" e-en the retai( in-estors) at a grassroots (e-e($ It !rings a price transparency an" ris% management in the -ita( mar%et$

74

, !ig "ifference !et*een a typica( auction) *here a sing(e auctioneer announces the !i"s) an" the 2.change is that peop(e are not on(y competing to !uy !ut a(so to se(($ By 2.change ru(es an" !y (a*) no one can !i" un"er a higher !i") an" no one can offer to se(( higher than someone e(se?s (o*er offer$ &hat %eeps the mar%et as efficient as possi!(e) an" %eeps the tra"ers on their toes to ma%e sure no one gets the purchase or sa(e !efore they "o$

NSE ) A Ne, ideolog!

&he !roa" o!jecti-e for *hich the e.change *as set up has ma"e it to p(ay a (ea"ing ro(e in en(arging the scope of mar%et reforms in securities mar%et in In"ia$ 3uring (ast one "eca"e it has !een p(aying the ro(e of a cata(ytic agent in reforming the mar%ets in terms of mar%et microstructure an" in e-o(-ing the !est mar%et practices %eeping in min" the in-estors$ &he 2.change is set up on a "emutua(ise" mo"e( *herein the o*nership) management an" tra"ing rights are in the han"s of three "ifferent sets of peop(e$ &his has comp(ete(y e(iminate" any conf(ict of interest$ &his has he(pe" 4S2 to aggressi-e(y pursue po(icies an" practices *ithin a pu!(ic interest frame*or%$ 4S2Ms nation*i"e) automate" tra"ing system has he(pe" in shifting the tra"ing p(atform from the tra"ing ha(( in the premises of the e.change to the computer termina(s at the premises of the tra"ing mem!ers (ocate" at "ifferent geographica( (ocations in the country an" su!se+uent(y to the persona( computers in the homes of in-estors an" e-en to han" he(" porta!(e "e-ices for the mo!i(e in-estors$ It has !een encouraging corporati;ation of mem!ership in securities mar%et$ It has a(so pro-e" to !e instrumenta( in ushering in scrip (ess tra"ing an" pro-i"ing sett(ement guarantee for a(( tra"es e.ecute" on the 2.change$ Sett(ement ris%s ha-e a(so !een e(iminate" *ith 4S2Ms inno-ati-e en"ea-ors in the area of c(earing an" sett(ement -i;$) esta!(ishment of the c(earing corporation (4S''0)) setting up a sett(ement guarantee fun" (S59)) re"uction of sett(ement cyc(e) imp(ementing on-(ine) rea(-time ris% management systems) "emateria(i;ation an" e(ectronic transfer of securities to name fe* of them$ ,s a conse+uence) the mar%et to"ay uses state-of-the-art information techno(ogy to pro-i"e an efficient an" transparent tra"ing) c(earing an" sett(ement mechanism$ In or"er to ta%e care of in-estors interest) it has a(so create" an in-estors protection fun" (IP9)) that *ou(" he(p in-estors *ho ha-e incurre" financia( (oss "ue to "efau(t of !ro%ers$

75

O,ner$"i' and Manage#ent t"e NSE

&he "ay-to-"ay management of the 2.change is "e(egate" to the Managing 3irector an" '2B *ho is supporte" !y a team of professiona( staff$ &herefore) though the ro(e of tra"ing mem!ers at 4S2 is to the e.tent of pro-i"ing on(y tra"ing ser-ices to the in-estors) the 2.change in-o(-es tra"ing mem!ers in the process of consu(tation an" participation in -ita( inputs to*ar"s "ecision ma%ing$

76

77

Market Seg#ent$ and Prod*ct$

4S2 pro-i"es an e(ectronic tra"ing p(atform for of a(( types of securities for in-estors un"er one roof - 2+uity) 'orporate 3e!t) 'entra( an" State 5o-ernment Securities) &-Bi((s) 'ommercia( Paper) 'ertificate of 3eposits ('3s)) :arrants) Mutua( 9un"s units) 2.change &ra"e" 9un"s) 3eri-ati-es (i%e In"e. 9utures) In"e. Bptions) Stoc% 9utures) Stoc% Bptions) 9utures on Interest ates etc$) *hich ma%es it one of the fe* e.changes in the *or(" pro-i"ing tra"ing faci(ity for a(( types of securities on a sing(e e.change$ T"e E;c"ange 'ro+ide$ trading in 7 different $eg#ent$ +i<. @"ole$ale de.t #arket A@&MB Ca'ital #arket ACMB $eg#ent and T"e f*t*re$ > o'tion$ A=>OB $eg#ent.

8. NSE =AMILJ
NSCCL
4ationa( Securities '(earing 'orporation 0t"$ (4S''0)) a *ho((y-o*ne" su!si"iary of 4S2) *as incorporate" in ,ugust F99G an" commence" c(earing operations in ,pri( F99L$ It *as the first c(earing corporation in the country to pro-i"e notation/sett(ement guarantee that re-o(utioni;e" the entire concept of sett(ement system in In"ia$ It *as set up to !ring an" 9 sustain confi"ence in c(earing an" sett(ement of securitiesH to promote an" maintain short an" consistent sett(ement cyc(esH to pro-i"e counter-party ris% guarantee) an" to operate a tight ris% containment system$ It carries out the c(earing an" sett(ement of the tra"es e.ecute" in the e+uities an" "eri-ati-es segments of the 4S2$

IISL
India Inde; Ser+ice$ and Prod*ct$ Li#ited AIISLB ) a joint -enture of 4S2 an" 're"it ating Information Ser-ices of In"ia 0imite" (' ISI0)) *as set up in May F99I to pro-i"e in"ices an" in"e. ser-ices$ It has a consu(ting an" (icensing agreement *ith Stan"ar" an" PoorMs (S&P)) the *or("Ms (ea"ing pro-i"er of in-est a!(e e+uity in"ices) for co-!ran"ing e+uity in"ices$ IIS0 poo(s the in"e. "e-e(opment efforts of 4S2 an" ' ISI0 into a coor"inate" *ho(e$ It is In"iaMs first specia(i;e" company *hich focuses upon the in"e. as a core pro"uct$ It pro-i"es a !roa" range of pro"ucts an" professiona( in"e. ser-ices$ It maintains o-er @0 e+uity in"ices comprising !roa"-!ase" !enchmar% in"ices) sectora( in"ices an" customi;e" in"ices$ Many in-estment an" ris% management pro"ucts !ase" on IIS0 in"ices ha-e !een "e-e(ope" in the recent past$ &hese inc(u"e in"e. !ase" "eri-ati-es on 4S2) a num!er of in"e. fun"s an" In"iaMs first e.change tra"e" fun"$

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NS&L
Prior to tra"ing in a "emateria(i;e" en-ironment) sett(ement of tra"es re+uire" mo-ing the securities physica((y from the se((er to the u(timate !uyer) through the se((erMs !ro%er an" !uyerMs !ro%er) *hich in-o(-e" (ot of time an" the ris% of "e(ay some*here a(ong the chain$

NSE.IT
4S2$I& 0imite") a F00T techno(ogy su!si"iary of 4S2) *as incorporate" in Bcto!er F999 to pro-i"e thrust to 4S2?s techno(ogy e"ge) concomitant *ith its o-era(( goa( of harnessing (atest techno(ogy for optimum !usiness use$ It pro-i"es the securities in"ustry *ith techno(ogy that ensures transparency an" efficiency in the tra"ing) c(earing an" ris% management systems$ ,""itiona((y) 4S2$I& pro-i"es consu(tancy ser-ices in the areas of "ata *arehousing) internet an" !usiness continuity p(ans$

NC&EI
4S2 joine" han" *ith other financia( institutions in In"ia -i;$) I'I'I Ban%) 4,B, 3) 0I') P4B) ' ISI0) 'anara Ban% an" I99'B to promote the 4'32K *hich pro-i"e a p(atform for mar%et participants to tra"e in *i"e spectrum of commo"ity "eri-ati-es$ 'urrent(y 4'32K faci(itates tra"ing of D@ agro !ase" commo"ities) F !ase meta( an" 2 precious meta($

9. LISTING O= SECURITIES
&he stoc%s) !on"s an" other securities issue" !y issuers re+uire (isting for pro-i"ing (i+ui"ity to in-estors$ 0isting means forma( a"mission of a security to the tra"ing p(atform of the 2.change$ It pro-i"es (i+ui"ity to in-estors *ithout compromising the nee" of the issuer for capita( an" ensures effecti-e monitoring of con"uct of the issuer an" tra"ing of the securities in the interest of in-estors$ &he issuer *ishing to ha-e tra"ing pri-i(eges for its securities satisfies (isting re+uirements prescri!e" in the re(e-ant statutes an" in the (isting regu(ations of the 2.change$ It a(so agrees to pay the (isting fees an" comp(y *ith (isting re+uirements on a continuous !asis$ ,(( the issuers *ho (ist their securities ha-e to satisfy the corporate go-ernance re+uirement frame" !y regu(ators$

79

80

G. MEMBERSHIP A&MINISTRATION
&he tra"ing in 4S2 has a three tier structure-the tra"ing p(atform pro-i"e" !y the 2.change) the !ro%ing an" interme"iary ser-ices an" the in-esting community$ &he tra"ing mem!ers ha-e !een pro-i"e" e.c(usi-e rights to tra"e su!ject to their continuous(y fu(fi((ing the o!(igation un"er the u(es) egu(ations) Bye(a*s) 'ircu(ars) etc$ of the 2.change$ &he tra"ing mem!ers are su!ject to its regu(atory "iscip(ine$ ,ny entity can !ecome a tra"ing mem!er !y comp(ying *ith the prescri!e" e(igi!i(ity criteria an" e.it !y surren"ering tra"ing mem!ership$ &here are no entry/e.it !arriers to tra"ing mem!ership$

H. IN6ESTOR GRIE6ANCES
In-estors are the !ac%!one of the securities mar%et$ Protection of their interests is paramount for 4S2$ In furtherance of their interests) 4S2 has put in p(ace systems to ensure a-ai(a!i(ity of a"e+uate) up-to-"ate an" correct information to in-estors to ena!(e them to ta%e informe" "ecisions$ It ensures that critica( an" price-sensiti-e information reaching the e.change is ma"e a-ai(a!(e to a(( c(asses of in-estor at the same point of time$ Such price-sensiti-e information as !onus announcements) mergers) ne* (ine of !usiness) etc$ recei-e" from the companies is "isseminate" to a(( the mar%et participants through the net*or% of 4S2 termina(s a(( o-er In"ia$ ,ction is initiate" !y the 2.change *hene-er any %in" of price sensiti-e information is not pro-i"e" to the 2.change at the prescri!e" time !y companies (iste" on the 2.change$

L. &EMATERIALISATION REMATERIALISATION
&EMATERIALISATION
MEANING

>

3emateria(isation is the process !y *hich physica( certificates of an in-estor are con-erte" to an e+ui-a(ent num!er of securities in e(ectronic form an" cre"ite" into the in-estorMs account *ith his/her 3P$ &e#ateriali$ing $ec*ritie$ A'"!$ical "olding into electronic "oldingB In or"er to "emateria(ise physica( securities one has to fi(( in a 3 9 (3emat e+uest 9orm) *hich is a-ai(a!(e *ith the 3P an" su!mit the same a(ong *ith physica( certificates one *ishes to "emateria(ise$ Separate 3 9 has to !e fi((e" for each ISI4 4um!er$ &he comp(ete process of "emateria(isation is out(ine" !e(o*#

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Surren"er certificates for "emateria(isation to your "epository participant$ 3epository participant intimates 3epository of the re+uest through the system$ 3epository participant su!mits the certificates to the registrar of the Issuer 'ompany$ egistrar confirms the "emateria(isation re+uest from "epository$ ,fter "emateria(ising the certificates) egistrar up"ates accounts an" informs "epository of the comp(etion of "emateria(isation$ 3epository up"ates its accounts an" informs the "epository participant$ 3epository participant up"ates the "emat account of the in-estor$ REMATERIALISATION &he process of remateria(isation is use" to con-ert the e(ectronic ho("ing into physica( ho("ings$ If one *ishes to get !ac% his securities in the physica( form one has to fi(( in the 9 ( emat e+uest 9orm) an" re+uest his 3P for remateria(isation of the !a(ances in his securities account$ &he process of remateria(isation is out(ine" !e(o*# Bne ma%es a re+uest for "emateria(isation$ 3epository participant intimates "epository of the re+uest through the system$ 3epository confirms "emateria(isation re+uest to the registrar$ egistrar up"ates accounts an" prints certificates$ 3epository up"ates accounts an" "o*n(oa"s "etai(s to "epository participant$ egistrar "ispatches certificates to in-estor$

1. BRO%ER > SUB)BRO%ER

BRO%ER
, !ro%er is a mem!er of a recogni;e" stoc% e.change) *ho is permitte" to "o tra"es on the screen-!ase" tra"ing system of "ifferent stoc% e.changes$ 1e is enro((e" as a mem!er *ith the concerne" e.change an" is registere" *ith S2BI$

$*. .roker
, su! !ro%er is a person *ho is registere" *ith S2BI as such an" is affi(iate" to a mem!er of a recogni;e" stoc% e.change$

02. PAJ)IN &AJ AN& PAJ) OUT &AJ

Pay in "ay is the "ay *hen the !ro%ers sha(( ma%e payment or "e(i-ery of securities to the e.change$ Pay out "ay is the "ay *hen the e.change ma%es payment or "e(i-ery of securities to the !ro%er$

82

Sett(ement cyc(e is on &A2 ro((ing sett(ement !asis *$e$f$ ,pri( 0F) 200D$ &he e.changes ha-e to ensure that the pay out of fun"s an" securities to the c(ients is "one !y the !ro%er *ithin 2E hours of the payout$ &he 2.changes *i(( ha-e to issue press re(ease imme"iate(y after pay out$

00. AUCTION
@HAT IS AN AUCTIONM
&he 2.change purchases the re+uisite +uantity in the ,uction Mar%et an" gi-es them to the !uying tra"ing mem!er$ &he shortages are met through auction process an" the "ifference in price in"icate" in contract note an" price recei-e" through auction is pai" !y mem!er to the 2.change) *hich is then (ia!(e to !e reco-ere" from the c(ient$

MA OR PLAJERS O= THE IN&USTRJ

S. S. %antilal I$",arlal Sec*ritie$ P+t. Ltd. A$"arek"an.co#B(
Share%han) In"ia?s (ea"ing stoc% !ro%er is the retai( arm of SS%I) an" offers you "epository ser-ices an" tra"e e.ecution faci(ities for e+uities) "eri-ati-es an" commo"ities !ac%e" *ith in-estment a"-ice tempere" !y "eca"es of !ro%ing e.perience$ , research an" ana(ysis team is constant(y *or%ing to trac% performance an" tren"s$ &hat?s *hy Share%han has the tra"ing pro"ucts) *hich are ha-ing one of the highest success rates in the in"ustry$ Share%han is ha-ing 582 $"are $"o'$ in 002 citie$H the (argest chain of retai( share shops in In"ia is of Share%han$ In future) Share%han is p(anning to enter in Mutua( fun"s) Insurance sector an" !an%ing sector to e.pan" !eyon" the mar%et current(y co-ere" !y it$ ,n" it has starte" M9 (Mutua( 9un"s) on priority !asis !ut *ants to gro* in it$

ICICI @EB TRA&E LT&. AICICIdirect.co#B(

83

ICICIdirect.co# ,a$ t"e fir$t entrant into e).roking. I'I'"irect$com pro-i"es the D-in-F to the users *hich ties in their sa-ing !an% account an" their 3emat account to their !ro%erage account e(ectronica((y$ &his integration ensures that money is transferre" to/from their !an% account an" the shares are transferre" from/to their 3emat account automatica((y *ithout *riting any che+ues or transfer instructions *hi(e carrying out their tra"es in shares$ I'I'I"irect$com has the option of tra"ing in shares in cash) margin or spot segments$ ,n in-estor can a(so in-est in FE Mutua( 9un"s (Pru"entia( I'I'I M9) 9ran%(in &emp(eton In"ia M9) ,((iance 'apita( M9) JM M9) Bir(a Sun 0ife M9) Sun"aram M9) I0&9S M9) Principa( M9) 139' M9) Stan"ar" 'hartere" M9) e(iance 'apita( M9) =ota% Mahin"ra M9) &,&, M9 an" 3SP M2 I00 0R4'1 M9) through their tra"ing account$

9Pai$a.co#(
Gpaisa is the tra"e name of In"ia Info(ine Securities Pri-ate 0imite" (Gpaisa)) mem!er of 4ationa( Stoc% 2.change an" &he Stoc% 2.change) Mum!ai$ Gpaisa is a *ho((y o*ne" su!si"iary of In"ia Info(ine 0t") In"ia?s (ea"ing an" most popu(ar finance an" in-estment porta($ Gpaisa has emerge" as one of (ea"ing p(ayers in e-!ro%ing space in In"ia$ &he company?s !ro%erage is one of the (o*est in the in"ustry$ It a(so pro-i"es the research on commo"ities$ In-estors can !enefit from its ana(ysis an" a"-ice a-ai(a!(e at the c(ic% of the mouse$ 9or those *ho prefer to tra"e the tra"itiona( *ay) In"ia Info(ine in-estor points are a-ai(a!(e across the country$ In"ia Info(ine *as foun"e" !y a group of professiona(s in F99G$ Its institutiona( in-estors inc(u"e Inte( 'apita() one of the (ea"ing techno(ogy companies in the *or(" promote" !y the Q= go-ernment) I'I'I) &3, an" eeshanar$ &he company offers a s(e* of pro"ucts such as stoc% an" "eri-ati-es !ro%ing) commo"ities !ro%ing an" mutua( fun"s$

%OTA% SECURITIES LIMITE& Akotak$treet.co#B(

=ota% Securities 0t"$) a strategic joint -enture !et*een =ota% Mahin"ra Ban% an" 5o("man Sachs (ho("ing 2GT - one of the *or("?s (ea"ing in-estment !an%s an" !ro%erage firms) is In"ia?s (ea"ing stoc% !ro%ing house *ith a mar%et share of G - L T$ =ota% Securities 0t"$ has !een the (argest in IPB "istri!ution - It *as ran%e" num!er Bne in 200D-0E as Boo% unning 0ea" Managers in pu!(ic

84

e+uity offerings !y P IM2 3ata!ase$ It has a(so *on the Best 2+uity 1ouse ,*ar" from 9inance ,sia - ,pri( 200E$ =ota% Securities 0t" is a(so a "epository participant *ith 4ationa( Securities 3epository 0imite" (4S30) an" 'entra( 3epository Ser-ices 0imite" ('3S0) pro-i"ing "ua( !enefit ser-ices *herein the in-estors can use the !ro%erage ser-ices of the company for e.ecuting the transactions an" the "epository ser-ices for sett(ing them$ &he company has E2 !ranches ser-icing aroun" F) 00)000 customers$ =ota%street$com the on(ine "i-ision of =ota% Securities 0imite" offers Internet Bro%ing ser-ices an" a(so on(ine IPB an" Mutua( 9un" In-estments$ =ota% Securities 0imite" manages assets o-er F@00 crores un"er Portfo(io Management Ser-ices (PMS) *hich is main(y to the high en" of the mar%et$ =ota% Securities 0imite" has ne*(y (aunche" 6=ota% Infinity7 as a "istinct "iscretionary Portfo(io Management Ser-ice *hich (oo%s into the mi""(e en" of the mar%et$

India B*ll$(
In"ia!u((s is In"iaMs (ea"ing retai( financia( ser-ices company *ith @@ (ocations sprea" across LE cities$ Its si;e an" strong !a(ance sheet a((o*s pro-i"ing -arie" pro"ucts an" ser-ices at -ery attracti-e prices) our o-er @G0 '(ient e(ationship Managers are "e"icate" to ser-ing your uni+ue nee"s$ In"ia!u((s is (ea" !y a high(y regar"e" management team that has in-este" crores of rupees into a *or(" c(ass Infrastructure that pro-i"es rea(-time ser-ice & 2E/@ access to a(( information an" pro"ucts$ &he India.*ll$ Profe$$ional Net,ork offers rea(-time prices) "etai(e" "ata an" ne*s) inte((igent ana(ytics) an" e(ectronic tra"ing capa!i(ities) right at your finger-tips$ &his po*erfu( techno(ogy is comp(emente" !y our %no*(e"gea!(e an" customer focuse" e(ationship Managers$ In"ia!u((s offers a fu(( range of financia( ser-ices an" pro"ucts ranging from 2+uities) 3eri-ati-es) 3emat ser-ices an" Insurance to enhance *ea(th an" to achie-e the financia( goa(s$

MOTILAL OS@AL SECURITIES LT&. AMOStB(

Bne of the top-D stoc%-!ro%ing houses in In"ia) *ith a "ominant position in !oth institutiona( an" retai( !ro%ing) MBSt is amongst the !est-capita(i;e" firms in the !ro%ing in"ustry in terms of net *orth$ MBSt *as foun"e" in F9I@ as a sma((
85

su!-!ro%ing unit) *ith just t*o peop(e running the sho*$ 9ocus on customer-firstattitu"e) ethica( an" transparent !usiness practices) respect for professiona(ism) research-!ase" -a(ue in-esting an" imp(ementation of cutting-e"ge techno(ogy ha-e ena!(e" it to !(ossom into a thousan"-mem!er team$ &he institutiona( !usiness unit has re(ationships *ith se-era( (ea"ing foreign institutiona( in-estors (9IIs) in the QS) Q=) 1ong =ong an" Singapore$ In a recent me"ia report MBSt *as rate" as one of the top-F0 !ro%ers in terms of !usiness transacte" for 9IIs$ &he retai( !usiness unit pro-i"es e+uity in-estment so(utions to more than G0)000 in-estors through 2@0 out(ets spanning FG0 cities an" 22 states$ MBSt pro-i"es ,"-ice-Base" Bro%ing) Portfo(io Management Ser-ices (PMS)) 2Bro%ing Ser-ices) 3epository Ser-ices) 'ommo"ities &ra"ing) an" IPB an" Mutua( 9un" In-estment ,"-isory Ser-ices$ Its <a(ue PMS Scheme ga-e a FL0T post-ta. return for the year en"e" March 200E$ In ,siaMoney Bro%ers Po(( 200D MBSt has !een rate" as the Best 3omestic esearch 1ouse- Mega 9un"s )*hi(e in 2000 an" 2002 it has !een rate" as the Best 3omestic 2+uity esearch 1ouse an" Secon" !est amongst In"ian Bro%erage firms respecti-e(y$

H&=C SECURITIES LT& AH&=C$ecB(

139'sec is a !ran" !rought to you !y 139' Securities 0t") *hich has !een promote" !y the 139' Ban% & 139' *ith the o!jecti-e of pro-i"ing the "i-erse customer !ase of the 139' 5roup an" other in-estors a capa!i(ity to transact in the Stoc% 2.changes & other financia( mar%et transactions$ &he ser-ices comprise on(ine !uying an" se((ing of e+uity shares on the 4ationa( Stoc% 2.change (4S2)$ Buying an" se((ing of se(ect corporate "e!t an" go-ernment securities on the 4S2 *ou(" !e intro"uce" in a su!se+uent phase$ In a fe* months) they *i(( a(so start offering the fo((o*ing on(ine tra"ing ser-ices on the BS2 an" 4S2# F$ Buying an" se((ing of shares on the BS2 2$ ,r!itrage !et*een 4S2 & BS2 D$ &ra"ing in 3eri-ati-es on the 4S2 E$ Margin tra"ing pro"ucts$ &hey are a(so p(anning to inc(u"e !uying an" se((ing of Mutua( 9un"s) IPB su!scriptions) ight issues) purchase of Insurance po(icies an" asset financing$

P I'2 'BMP, ISIB4 :I&1 B&12 M,JB P0,R2

86

Para#eter$

O'ening =ee &ra"ing 3emate ,/' ,/c @G0 @G0 2G0 L00 G00 @00 4I0 4I0 4I0 2G0 4I0

Brokerage 3e(i-ery S+uare Bff 0$E0 0$@G 0$E0 0$20 0$G9 0$G0 0$0I 0$FI 0$F0 0$0G 0$0L 0$FG

Interface Ban% ,ssociate" 139')Q&I)BB') I3BI) 'ity Ban% I'I'I Ban%

S"arek"an ICICI &irect India B*ll$ 9 Pai$a %otak Street H&=C Sec*ritie$

I'I'I Ban%) Q&I) BB') 139') 'ity Ban% =ota% Ban%) 'ity Ban% 139' & Bther Ban%

7.G &ifferent t!'e$ of co#'an! in+ol+ed in online trading( o o o o o o o o o 139' S2'Q I&I2S 0IMI&23 I'I'I :2B & ,32 0IMI&23 =B&,= S& 22& 0IMI&23 9I<2 P,IS, S2'Q I&I2S 0IMI&23 I43I,BQ00S S2'Q I&I2S 0IMI&23 MB42RPB 2 S2'Q I&I2S 0IMI&23 S1, 2 =1,4 S2'Q I&I2S 0IMI&23 52BJI& S2'Q I&I2S B&12 S$

9PAISA.COM &ra"e in BS2)4S2 &ra"e in mu(ticommo"ity e.change &ra"e in nationa( commo"ity e.change ,ccess to research an" technica( ana(ysis

87

 <-S,&) internet connecti-ity Bn(ine !ac% office) soft*are & support 0i!era( "eposit) margin & e.posure terms %OTA% STREET.COM 2asy e+uities 2asy mutua( fun" 3eri-ati-es esearch on sms Margin finance 'a(( & tra"e 2asy IPB o-er phones SHARE%HAN.COM '(assic account &ra"ing on 4S2 Spee" tra"e Spee" tra"e p(us Sing(e screen tra"ing termina( ea(-time streaming +uotes

0i-e tic-!y-tic intra-"ay charting Instant or"er/tra"e confirmations in the same *in"o* 1ot %eys simi(ar to a !ro%er?s termina( Bac%-up faci(ity to p(ace tra"es on "irect phone (ines IN&IABULLS.COM &ra"e in e+uity &ra"ing through termina( &ra"e in "eri-ati-es Bac%-up faci(ity to p(ace tra"es on "irect phone (ines Spee" tra"e p(us Bff(ine support through messenger ,ccess research an" technica( research

88

 B*n transaction engine 1igh transaction spee" H&=C SECURITIES.COM &ra"ing on 4S2 Mutua( fun" Bn(ine !ac% office) soft*are & support 0i-e +uotes up"ate system

Market share of online trading portals at present

Indiabulls 10% 3% 5% 10% 20% 5paisa.com Moneypore.com Hdfcsec.com 10% 10% 3% ICICIDirect.com ota!street.com I"#$% %&are!&an.com ot&ers 29%

89

S,ot Anal!$i$

Introd*ction
S:B& ,na(ysis#is a#strategic p(anning#metho" use" to e-a(uate the#Strengths)#:ea%nesses)#Bpportunities) an"#&hreats in-o(-e" in a#project#or in a#!usiness#-enture$ It in-o(-es specifying the o!jecti-e of the !usiness -enture or project an" i"entifying the interna( an" e.terna( factors that are fa-ora!(e an" unfa-ora!(e to achie-ing that o!jecti-e$ , S:B& ana(ysis must first start *ith "efining a "esire" en" state or o!jecti-e$ , S:B& ana(ysis may !e incorporate" into the #strategic p(anning mo"e($ ,n e.amp(e of a strategic p(anning techni+ue that incorporates an o!jecti-e-"ri-en S:B& ana(ysis is#Strategic 'reati-e ,na(ysis#(S',4)$ Strategic P(anning) inc(u"ing S:B& an" S',4 ana(ysis) has !een the su!ject of much research$ Strengths# attri!utes of the person or company that are he(pfu( to achie-ing the o!jecti-e$ @ea%nesses# attri!utes of the person or company that are harmfu( to achie-ing the o!jecti-e$ Opportunities##e!ternal#con"itions that are he(pfu( to achie-ing the o!jecti-e$ Threats##e!ternal#con"itions *hich cou(" "o "amage to the !usinessMs performance$

I"entification of S:B& is essentia( !ecause su!se+uent steps in the process of p(anning for achie-ement of the se(ecte" o!jecti-e may !e
90

"eri-e" from the S:B&$ 9irst) the "ecision ma%ers ha-e to "etermine *hether the o!jecti-e is attaina!(e) gi-en the S:B&$ If the o!jecti-e is 4B& attaina!(e a "ifferent o!jecti-e must !e se(ecte" an" the process repeate"$ &he S:B& ana(ysis is often use" in aca"emia to high(ight an" i"entify strengths) *ea%nesses) opportunities an" threats$ It is particu(ar(y he(pfu( in i"entifying areas for "e-e(opment$

Use of SWOT Analysis

&he usefu(ness of S:B& ana(ysis is not (imite" to profitsee%ing organi;ations$ S:B& ana(ysis may !e use" in any "ecisionma%ing situation *hen a "esire" en"-state (o!jecti-e) has !een "efine"$ 2.amp(es inc(u"e##non-profit organi;ations) go-ernmenta( units) an" in"i-i"ua(s$ S:B& ana(ysis may a(so !e use" in pre-crisis p(anning an" pre-enti-e#crisis management$ S:B& ana(ysis may a(so !e use" in creating a recommen"ation "uring a#-ia!i(ity stu"y$

SWOT-lan s!a"e analysis

&he S:B&-(an"scape gra!s "ifferent manageria( situations !y -isua(i;ing an" foreseeing the "ynamic performance of compara!(e o!jects
91

accor"ing to fin"ings !y Bren"an =itts) 0eif 2"-insson an" &or" Be"ing (2000)$ 'hanges in re(ati-e performance are continuous(y i"entifie"$ Projects (or other units of measurements) that cou(" !e potentia( ris% or opportunity o!jects are high(ighte"$ S:B&-(an"scape a(so in"icates *hich un"er(ying strength/*ea%ness factors that ha-e ha" or (i%e(y *i(( ha-e highest inf(uence in the conte.t of -a(ue in use

S@OT ANALJSIS O= ANGEL BRO%ING LT&.

3uring this training at ,4520 B B=I45 0&3) *e ha" come to %no* the Strengths :ea%nesses 8 Bpportunities 8 &hreats for the company an" it is -ery usefu( for a company to ana(y;e them$ &herefore) the S:B& ana(ysis is presente" here an" the suggestions for maintaining strengths an" remo-ing *ea%nesses are e.p(aine"$

Strengt"$(
:e((-maintaine" infrastructure$ 3e"icate") Inte((igent an" 0oya( staff$ Bn-(ine &ra"ing pro"ucts$ 0o*est !ro%erage an" other charges *$r$t$ 'ompetitors$

92

 &he !est in-estment a"-ice correct up to @0-90 T through "e"icate" esearch an" reports$

:i"e pro"uct range to ena!(e the c(ients to choose the !est a(ternati-e$ Bne of the !est 3Ps in In"ia$ , positi-e image in the e.isting c(ients$ 0arge retai( customer !ase Best on(ine soft*are B"in *hich *ithin G secon" management information system is +uite goo" as compare to competitors

@eakne$$e$(
0ess a*areness in the mar%et$ &ime consuming process for account opening) reso(-ing the pro!(ems of the customers) etc$ Ser-ice +ua(ity is not maintaine" accor"ing(y ho* they are promote"$

93

 'oncentrate more on 14I (1igh 4et-*orth In"i-i"ua() c(ient emp(oyee attrition rate is high especia((y B$3$B$ & 3ea(ers a(( !ranches are not *or%ing in a synchroni;e" *ay

O''ort*nitie$(
0arge primary mar%et to sit as a !oo% runner for the other companies just (i%e =ota% securities (t"$ that runs the !oo%s of share ho("ings for many companies S(ope of stoc% mar%et to*ar"s "e(i-ery !ase" transactions$ there are on(y 2 T to DT peop(es are in-esting in share mar%et so huge opportunities are there 0arge potentia( mar%et for "e(i-ery an" intra-"ay transactions$ Bpen interest of the peop(e to enter in stoc% mar%et for in-esting$ ,ttract the customers *ho are "issatisfie" *ith other !ro%ers & 3Ps$ ,n in"irect opportunity generate" !y the mar%et from its !u((ishness$

T"reat$(
3ecreasing rates of !ro%erage in the mar%et$

94

 Increasing competition against other !ro%ers & 3Ps$ Poor mar%eting acti-ities for ma%ing the company %no*n among the customers , threat of (oosing c(ients for any %in" of *ea%ness of the company$ In"irect threat from insta!(e stoc% mar%et) i$e$) (o*/no profit of Share%han?s c(ients *ou(" (ea" them to go for other !ro%er/3P$

Pa$t Perfor#ance

95

Prod*ct$ > Ser+ice$

96

&ata Anal!$i$
&he first an" simp(est ana(ytica( step in "ata ana(ysis is to de$cri.e the "ata Y for e.amp(e) summari;e its statistica( attri!utes (such as means an" stan"ar" "e-iations)) -isua((y re-ie* it using charts an" graphs) an" (oo% at the "istri!ution of -a(ues of the fie("s in your "ata$ But "ata "escription a(one cannot pro-i"e an action p(an$ Rou must !ui(" a pre"icti-e mo"e( !ase" on patterns "etermine" from %no*n resu(ts) then test that mo"e( on resu(ts outsi"e the origina( samp(e$ , goo" mo"e( shou(" ne-er !e confuse" *ith rea(ity (you %no* a roa" map isn?t a perfect representation of the actua( roa")) !ut it can !e a usefu( gui"e to un"erstan"ing your !usiness$

97

3ata ana(ysis can !e use" for !oth c(assification an" regression pro!(ems$ In c(assification pro!(ems you?re pre"icting *hat category something *i(( fa(( into 8 for e.amp(e) *hether a person *i(( !e a goo" cre"it ris% or not) or *hich of se-era( offers someone is most (i%e(y to accept$ In regression pro!(ems you?re pre"icting a num!er such as the pro!a!i(ity that a person *i(( respon" to an offer$

Indian Brokerage Ind*$tr!

Introd*ction

:ith the fa(( in the turno-er in the 2+uity segment !y o-er D0 per cent since ,pri() re-enue of !ro%ing houses ha-e ta%en a major hit$ 'ompare" *ith the pre-ious fe* +uarters) the net profits of many (ea"ing !ro%ing houses ha-e near(y ha(-e" "espite the re-enues "ec(ining margina((y$ &he resu(ts poste" !y !ro%ing firms ha-e !een e.treme(y poor in (ine *ith the mar%et con"itions) ha-ing reporte" either a fa(( in net profit or) at !est) on(y a margina( rise in their !ottom(ine for the perio"$ &he *orst-hit seems to !e the !ro%ing firms *hich are facing cha((enges in their "ec(ining !usiness apart from stringent re(uctance of financia( institutions to (en" them money for *or%ing capita($ Bro%ing firms ha" an e.ce((ent ra((y in the pre-ious fisca( an" thus ha" e.tra-agant p(ans of increasing their footho(" across nation) an" some of them e-en g(o!a((y$ :ith the current financia( me(t"o*n *or("*i"e) most of them ha-e not on(y put their e.pansion p(ans on ho(" !ut a(so are s(o*ing "o*n in current !usinesses$ &hese firms *ere on a gro*th spree) a""ing !ranches an" peop(e across cities$ &he augmentation *as a(so "ri-en !y the infusion of fun"s !y the !ig pri-ate e+uity an" foreign p(ayers *anting to in-est in these !ro%ing outfits$ &he sma((er !ro%ing outfits too% a greater hit) as they strugg(e" to meet their margin re+uirements "ue to (i+ui"ity constraints$ ecent(y) tra"ing termina(s of 9G !ro%er mem!ers *ere "eacti-ate" in the 9&B segment an" 29 "eacti-ations occurre" in the cash segment$ In Septem!er) the termina(s of DL !ro%er mem!ers *ere "eacti-ate" *hereas in ,ugust it *as on(y FF$ &here *ere IIG acti-e tra"ing mem!ers in the 9&B segment an" 9IE in the cash segment on 4S2 in Bcto!er$ &he mar%et scene appears !(ea% for the securities firms$ Juite e.pecte") these negati-e sentiments are ref(ecting in the stoc% prices of !ro%ing firms$ Most of them ha-e fa((en !y more than @GT from their highs

98

ear(y this year$ ,fter !an%ing stoc%s) !ro%ing outfits ha-e face" the !runt in the current financia( turmoi($ :hen the macro con"itions *ere fine) in-aria!(y stoc% mar%ets "i" perform *e(($ Simi(ar(y) the "o*ntren" in the economy is a(so ref(ecte" in the stoc% mar%et$

&eri+ati+e Re'ort
0$9DT) *hi(e Minify future?s open interest "ecrease" !y D$EIT) as mar%et c(ose" at D0EL$@G (e-e(s$ 4ifty January future is tra"ing at premium of L$IG points against premium of F0$2G points in pre-ious tra"ing session$ :hi(e 9e!ruary future is tra"ing at premium of F@$D0 points$ P' -BI is at the same (e-e(s of F$FF$ 3ue to !ui(" up in ca(( as *e(( as put options$ I< of at the money option is E0$DGT$ 1istorica( -o(ati(ity has re"uce" from GL$9GT to GG$2ET$ Stoc%s *hich are tra"ing at "ecent positi-e cost of carry are ,J2S12KPB) 9S0) BI43,0,5 B) I9'I an" '1,MB092 & $

99

&ata Anal!$i$ of C*$to#er$

100

3ifferent customers ha-e the "ifferent o!jecti-es/purpose for opening the account in ,nge( Bro%ing 0t"$) as per the sur-ey "one !y us is as fo((o*# O.:ecti+e for ANC o'ening Co##odit! In+e$t#ent IPO Trading In+e$t#ent > Trading In+e$t#ent Trading > IPO IPO > Trading In+e$t#ent > IPO Ot"er$ No. of C*$to#er$ 0 07H 89 589 9H 5G 70 H 71

Custom er's A/c Opening Survey

Commodity In'estment I() *radin+ In'estment # *radin+ In'estment *radin+ # I() I() # *radin+ In'estment # I() )t&ers

101

"ercentage of customers as per their intrest of investment

I"O ()%

Others *%

+ommodity ,%

Trading #$%

Investment &'%

=inancial Re$tr*ct*ring
,nge( Bro%ing 0t"$ pro-i"es the ser-ice of 9inancia( ,s per the sur-ey the chart is as fo((o*s# estructuring$

102

.,,

-,,

$,,

*,,

),,

#,,

3eries(

&,,

',,

(,,

, Interested in /inancial "lanning/ "ortfolio 0estructuring 1es 2o Total

Co#'ari$on of Online Trading Prod*ct$ ,it" +ario*$ co#'an!

Co$. F =eat*re$ S"are k"an %otak$tre et.co# ICICI
&irect.co# Prod*ct$ Offered 5roun" ,/c) 2Bro%ing) 'ommo"ity) 3P) PMS 5roun" ,/c) Bn(ine ,/c) 'ommo"ity) 3P Bn(ine ,/c) Mutua( 9un" 2-Bro%ing 5roun" ,/c) Bn(ine Onlin e BSEF NSE
Res

Online =>O

Onlin e IPO

Onlin e M=
4o

Online Co##o dit!

4o

AFc O'enin &e'o$it$ g C"arge$

'(assic @G0/-S& F000/F0000

Res

Res

Res

Res

Res

Res

4o

G00

G0000

Res Res Res

Res Res Res

4o 4o Res

Res 4o Res

4o 4o Res

@G0 L00 Qpto E00

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

H&=C Motilal

103

O$,al India.*ll$ 9) Pai$a.co# Angel Broking IL>=S Anagra#

,/c) 'ommo"ity) 3P) PMS 5roun" ,/c) Bn(ine ,/c) 'ommo"ity) 3P)M9 2-Bro%ing) Insurance 5roun" ,/c) 2Bro%ing Insurance) M9) 2-Bro%ing) 5roun" ,/c 5roun" ,/c) 2Bro%ing) Mutua( 9un"

Res

Res

Res

4o

4o

2G0

-----

Res Res

Res 4o

4o Res

4o 4o

Res 4o

G00 G00

G000 G0000

Res

Res

Res

Res

Res

G00

------

Res

Res

Res

Res

Res

@I0

F0000

Li#itation$

3efinition of perfection "iffers from in"i-i"ua(s to in"i-i"ua(s$ 4o matter ho* meticu(ous one is) the stu"y that is comp(ete(y !ase" on responses from a -ast -ariety of peop(e cannot !e free from (imitations$ &hough the present stu"y aime" to achie-e the a!o-e-mentione" o!jecti-es in fu(( earnest an" accuracy) it *as hampere" "ue to certain (imitations$ Some of the (imitations of this stu"y may !e summari;e" as fo((o*s# Se(ection of the peop(e *ho are un"er consi"eration as samp(e for the stu"y may not !e the !est samp(e se(ecte"$ Samp(e si;e *as (imite" "ue to the (imite" perio" a((ocate" for the sur-ey$

104

 &he se(ection of peop(e to co-er the -arious types of commo"ity tra"ing ranging from agro pro"ucts to energy an" meta(s (i%e go(" an" si(-er *as te"ious an" time consuming$ 5etting accurate responses from the respon"ents "ue to their inherent Pro!(ems) persona(ity traits an" moo" f(uctuations *as a -ery "ifficu(t tas%$ Some respon"ents ha" to !e re-contacte" as per their con-enience of time$ Some of the area in *hich the sur-ey is carrie" out *as -ery un 8 hygienic an" o-er cro*"e"$

105

 Some "ata of customer is not proper$ 0i%e their contact num!er & a""ress$

=inding$
In are) *hich *e *are gi-en out of I00 c(ients *e ha-e most(y foun" that they are not intereste" in the financia( portfo(io restructuring$ :e foun" 90$@T no intereste" an" 9$DT are intereste" in the city$ Most of the c(ients *hom) *e met 5o-ernment emp(oyees) !usinessman) 1ote(s) ma((s) restaurants an" chai*a(a a(so$ :hat a!out their intereste" in tra"ing$ Most of the c(ients in-este" in the IPB) &ra"ing) In-estment) future an" options an" commo"ity mar%ets$ But of I00 Most of the c(ients Intereste" in tra"ing$

eason for not in-esting in ,nge( !ro%ing$> easons for no in-esting Improper ser-ices 0ac% of communication Margin an" (imit issue Mar%et crisis 4o of espon"ents FG0 F00 2G0 D00

106

,) )$ -.%(),D.,*%

Improper ser'ices 19% mar!et crisis 3/% lac! of communication 13% mar+in and limit issue 31%

A,arene$$ a.o*t angel$ ne, $er+ice$

Bn(ine tra"ing Margin fun"ing PMS ,4520 5B03 P 2P,I3 B B=2 ,52 0I92 I4SQ ,4'2 (BI 0, SQ4 0I92) MQ&Q,0 9Q43 9IK23 32PBSI& BB43

No. of re$'ondent$
D00 G0 F00 D0 20 20 200 G00 E00

107

S*gge$tion(
9rom the a!o-e chart *e can see that -arious customer are a!out on(ine tra"ing) on the other han" fe* peop(e a*are a!out ange( go(" an" its prepai" !ro%erage ser-ices$ 'ompany shou(" gi-e focus on on(ine customer an" try to gi-e more information a!out ange( go(" an" prepai" to these e.isting c(ients an" create interest among them to ta%e a"-antage of these ne* ser-ices$

108