SUMMER TRAINING PROJECT REPORT COMPETITVE ANALYSIS OF BROKING INDUSTRY AND SURVEY ON SERVICES OF RELATIOSHIP MANAGER Undertaken At India

Infoline Ltd.

COMPANY PROFILE

The IIFL (India Infoline) group, comprising the holding company, India Infoline Ltd (NSE: INDIAINFO, BSE: 532636) and its subsidiaries, is one of the leading players in the Indian financial services space. IIFL offers advice and execution platform for the entire range of financial services covering products ranging from Equities and derivatives, Commodities, Wealth management, Asset management, Insurance, Fixed deposits, Loans, Investment Banking, GoI bonds and other small savings instruments. IIFL recently received an in-principle approval for Securities Trading and Clearing memberships from Singapore Exchange (SGX) paving the way for IIFL to become the first Indian brokerage to get a membership of the SGX. IIFL also received membership of the Colombo Stock Exchange becoming the first foreign broker to enter Sri Lanka. IIFL owns and manages the website, www.indiainfoline.com, which is one of Indias leading online destinations for personal finance, stock markets, economy and business. IIFL has been awarded the Best Broker, India by FinanceAsia and the Most improved brokerage, India in the AsiaMoney polls. India Infoline was also

adjudged as Fastest Growing Equity Broking House - Large firms by Dun & Bradstreet. A forerunner in the field of equity research, IIFLs research is acknowledged by none other than Forbes as Best of the Web and a must read for investors in Asia. IIFL research is available not just over the Internet but also

on international wire services like Bloomberg, Thomson First Call and Internet Securities where it is amongst one of the most read Indian brokers. A network of over 2,500 business locations spread over more than 500 cities and towns across India facilitates the smooth acquisition and servicing of a large customer base. All IIFL offices are connected with the corporate office in Mumbai with cutting edge networking technology. The group caters to a customer base of about a million customers, over a variety of mediums viz. online, over the phone and at our branches.

History & Background

India Infoline was originally incorporated on October 18, 1995 as Probity Research and Services Private Limited at Mumbai under the Companies Act, 1956 with Registration No. 11 93797. It commenced their operations as an independent provider of information, analysis and research covering Indian businesses,

financial markets and economy, to institutional customers. It became a public limited company on April 28, 2000 and the name of the Company was changed to Probity Research and Services Limited. The name of the Company was changed to IndiaInfoline.com Limited on May 23, 2000 and later to India Infoline Limited on March 23, 2001.

In 1999, it identified the potential of the Internet to cater to a mass retail segment and transformed our business model from providing information services to institutional customers to retail customers. Hence it launched their Internet portal, www.indiainfoline.com in May 1999 and started providing news and market information, independent research, interviews with business leaders and other specialized features.

In May 2000, the name of our Company was changed to India Infoline.com Limited to reflect the transformation of our business. Over a period of time, it has emerged as one of the leading business and financial information services provider in India. In the year 2000, they leveraged their position as a provider of financial information and analysis by diversifying into transactional services, primarily for online trading in shares and securities and online as well as offline distribution of

personal financial products, like mutual funds and RBI Bonds. These activities were carried on by our wholly owned subsidiaries.

Their broking services was launched under the brand name of 5paisa.com through our subsidiary, India Infoline Securities Private Limited and www.5paisa.com, the e-broking portal, was launched for online trading in July 2000. It combined competitive brokerage rates and research, supported by Internet technology. Besides investment advice from an experienced team of research analysts, they also offered real time stock quotes, market news and price charts with multiple tools for technical analysis.

Organization structure

ED
V ice P re s id e n t R e ta il B ro k in g
Corporate Structure India Infoline Ltd

V ice P re s id e n t India Infoline Investment Services Ltd

India Infoline Marketingt Services Ltd India Infoline Commodities Ltd India Infoline Asia Pte Ltd

India Infoline Wealth Management Ltd India Infoline Capital Ltd IIFL Inc.US Investment IIFL securities Ceylon Ltd

PRODUCTS
IIFL Inc.US Investment IIFL IIFL Asset securities Management Ceylon Ltd Company Ltd

EQUITY India Infoline provided the prospect of researched investing to its clients, which was hitherto restricted only to the institutions. Research for the retail investor did not exist prior to India Infoline. India Infoline leveraged technology to bring the convenience of trading to the investors location of preference (residence or oce) through computerized access. India Infoline made it possible for clients to view transaction costs and ledger updates in real time.

MUTUAL FUND A mutual fund is a body corporate registered with SEBI that pools money from the individuals/corporate investors and invests the same in a variety of different financial instruments or securities such as Equity Shares, Government Securities, Bonds, Debentures, etc. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a

diversified, professionally managed basket of securities at a relatively low cost. Mutual fund units are issued and redeemed by the Asset Management Company

(AMC) based on the funds net asset value (NAV), which is determined at the end of each trading session.

COMMODITIES India Infolines extension into commodities trading reconciles its strategic intent to emerge as a one stop solutions nancial intermediary. Its experience in secu- rities broking has empowered it with requisite skills and technologies. Increased oering: The Companies commodities business provides a contra-cyclical alternative to equities broking. The Company was among the rst to oer the facility of commodities trading in Indias young commodities market (the MCX commenced operations only in 2003). Average monthly turnover on the commodity exchanges increased from Rs 0.34 bn to Rs 20.02 bn. The commodities market has several products with dierent and non-correlated cycles. On the whole, the business is fairly insulated against cyclical gyrations in the business.

INSUANCE

An entry into this segment helped complete the clients product basket; concurrently, it graduated the Company into a one stop retail nancial solutions provider. To ensure maximum reach to customers across India, we have employed a multi pronged approach and reach out to customers via our Network, Direct and Aliate channels. Following the opening of the sector in 1999-2000, a number of private sector insurance service providers commenced operations aggressively and helped grow the market. PMS India Iinfolines Portfolio Management Service is a product wherein an equity investment portfolio is created to suit the investment objectives of a client. We at India Infoline invest your resources into stocks from dierent sectors, depending on your risk-return prole. This service is particularly advisable for investors who cannot aord to give time or dont have that expertise for day-to-day management of their equity portfolio. It is all about your money, being managed by the experts, while you continue with your routine life. Isnt it simple and totally hassle free. Whats more, you can keep track of your dividends / bonus / rights issues with

paperless tracking. So you always know how fast your investment is growing. It basically means assigning the right job to the right person.

DERIVATIVES The Derivatives Market is meant as the market where exchange of derivatives takes place. Derivatives are one type of securities whose price is derived from the underlying assets. And value of these derivatives is determined by the fluctuations in the underlying assets. These underlying assets are most commonly stocks, bonds, currencies, interest rates, commodities and market indices. As Derivatives are merely contracts between two or more parties, anything like weather data or amount of rain can be used as underlying assets.The Derivatives can be classified as Future Contracts, Forward Contracts, Options, Swaps and Credit Derivatives.

Services Provided by IIFL

1) E-Broking

 Multiple exchanges on single screen

Intra-day calls

Historical charts with technical tools

1) Research

Daily services

Technical services

Fundamental service

1) DAILY SERVICES

Market Outlook At 9:30 P M Technical Report At 6:00 P M Deravative Analysis Report

 Stock Analysis Intra-Day Calls Derivative Strategies COMMODITIES SERVICES

Milestones:

October 1995 Incorporated as Probity Research and Services Private Limited March 1996

Launched Probity 200, research reports on 200 leading listed

Indian companies
June 1998 Launched Probity Sector reports

 May 1999 Launched our internet portal www.indiainfoline.com and changed

our name to India Infoline Limited

April 2000 Forayed into distribution of mutual funds, fixed deposits, RBI

bonds and other small savings products

July 2000 Launched www.5paisa.com, the e-broking portal and started online

trading with membership of BSE & NSE

December 2000 Corporate agency for ICICI Prudential Life Insurance Company Limited

September 2001 IIFL became the Depositary Participant of NSDL March 2004 Launched commodities trading by taking membership of MCX April 2004 Received license from SEBI to offer Portfolio Management Service

August 2004 launched Portfolio Management Services May 2005 listed on BSE & NSE May 2005 acquired NBFC license

Oct 2005 acquired 75% stake in Money tree Consultancy Services, which is a

distributor of mortgages & other loan products

Dec 2005 acquired 100% equity of Marchmont Capital Advisors Pvt. Ltd.

which have ventured into merchant banking

 Dec 2005 DSP Merrill Lynch Capital subscribed to convertible bonds

aggregating Rs.80 crs.

2006 Acquired membership of DGCX

Commenced the credit & finance

March 2007 Their current stake in India Infoline is a little over 14%. 2007 Formed Singapore subsidiary, IIFL (Asia) Pte Ltd

2008 Launched IIFL Wealth

2009 Acquired to insurance for Housing Finance

SEBI in-principle approval for Mutual Fund Obtained Venture Capital License

2010 Received in-principle approval for membership of the Singapore Stock

Exchange . Received membership of the Colombo Stock Exchange.

2011 Received SEBI final approval for IIFL Mutual Fund

Vision

Our vision is to be the most respected company in the financial

services space.

Mission To become a full-fledged financial services company known for its quality of advice, personalized services and cutting edge technology

Recent awards and accolades

1) Best Equity broker 2011

Best Equity Broker of the year at Bloomberg UTV Financial Leadership Awards 2011

2) Best Market Analyst 2009

Best Analyst Awards in the Oil & Gas and Commodities sectors at the Zee business for 2009

3) Best Brokerage 2009

Amongst the top 3 for best Brokerage in India by Asia Money for 2009.

4) Indias Most Valuable CEOs 2009

Nirmal Jain ranked second in Indias most valuable CEOs by Business World for 2009.

5) Best Broker India 2008

6) Most Improved Brokerage-India 2008

7) Fastest Growing Broking House

Management Team

Chairman : Nirmal Jain

Managing Director :R .Venkitaraman

Institutional Equities Investment Banking Consumer Finance Retail Broking Wealth Management International Operations Offshore Asset Management Insurance Distribution

H.Nemkumar Ajit Menon,Donald D Souza Pratima Ram Nandip Vaidya Karan Bhaget Bharat Parajia Deepesh Pandey, Manish Srivastava Mukesh Kumar Singh

Research Methodology

Research is scientific and systematic search for relevant information on specific topic and the topic is SERVICES OF CUSTOMER RELATIONSHIP MANAGER

Objective SERVICES OF CUSTOMER RELATIONSHIP MANAGER

Sampling design Types of sampling Random Sampling

Research Approach Descriptive approach

Techniques to be used in research approach

Survey and interview

Sampling Unit

 Questionnaire In this project Questionnaire is used as the research instrument. These questionnaires include Close Ended as well as Open Ended questions. The questionnaire is attached at the end of Annexure

Data collection

Primary Data Collection

Structured questionnaire for the customer.

Secondary data collection Journals Web-sites

1. Do you invest money in stock market?

Interpretation: : 70% of the respondents are aware of the different brokerage firms in Ahmedabad and 30% are not aware.
2) With which company are you trading?

Interpretation: 25% of the respondent have prefer ICICI,20% of the respondent have prefer IIFL,15% prefer Kotak securities,15%preferHDFC,15% prefer Religare and 10%prefer Share Khan securities. 3) What is the first thing that comes to your mind when you hear customer relationship manager?

Interpretation:75% of the respondents response service and 25% of the respondent response product

4) Rate your satisfaction with the services of CRM

Interpretation:40% of the respondents given rate excellent their RMs service,30% is good,20% is average and 10% is bad.
5) Does he understand your want and need and suggest you products

accordingly?

Interpretation:80% of the respondent response RM understand their and need and suggest them products accordingly and 20% of the respondents not happy.
6) Is he able to convey your messages effectively to the organization

authorities and sorts out your problem?

Interpretation:50% 0f the respondent response some time RM sort out their problems,40% prefer always RM sort out their problem and 10% respondents told RM never sort out their problems. 7) Please rate his communication skills.

Interpretation:58% of the respondent response good their RMs communication skill,28% have given excellent rate and 14% given average rate.
8) Are you happy with his nature and character?

Interpretation:82% respondents have happy with their RMs character and 18% are not happy
9) . Are you getting information about product charges in detail?

Interpretation:62% of the respondent told some time they are getting product detail,28% are getting always product details and 10% of the respondents told they are never getting product detail.
10) If you get such information, what is the frequency of getting such

information?

Interpretation:64% of the respondent told they are getting product details once in a week,24% getting once in a month and 12% getting every day

11) How good is his knowledge about the market conditions?

Interpretation:45% of the respondent respond their RMs knowledge about market condition is good,28% told profound,20% told average and 7% told little.
12) Does he predict the changes in the market correctly?

Interpretation: 72% of the respondents responds their RM is some time predict market changes correctly and 28% told RM is not predict correctly.
13) Does he maintain good contact with you and suggest products according to

changes in the market?

Interpretation:82% of the respondent told their RM is maintain good contact and 18% is told RM is not maintain good contact.
14) Was he able to assist you and help you out of the problems that you faced?

Interpretaion:65% of the respondent responds their RM always was helped them out of the problems that they are faced and 25% for some time and 10 responds never.
15) Is he efficient to meet dead lines?

Interpretation : 90% respondents told their RM is efficient to meet dead line and 10% told RM is not efficient to meet dead line.

16. How do you rank your CRM in the following criteria on the scale of 1to 5, where 5 stands for best and 1 stands for poor Communication 1 Market condition Current affairs Product Services Others 1 1 1 1 1 2 2 2 2 2 2 3 3 3 3 3 3 4 4 4 4 4 4 5 5 5 5 5 5

Interpretation:25% of the respondent responds their RMs communication is good,25% of the respondents responds their RMs service is good,20% of the respondents responds their RMs knowledge about product is good,15% of the respondents responds their RMs knowledge about market condition is good and 15% of the respondents responds their RMs knowledge about current affairs is good.

QUESTIONNAIRE TO CUSTOMER ON SERVICES OF CUSTOMER RELATIONSHIP MANAGER 1. Do you invest money in stock market? Yes No

2. With which company are you trading? Angel broking Sharekhan

Kotak securities ICICI Religare HDFC India Infoline Others

Please state _____________________

3. What is the first thing that comes to your mind when you hear customer relationship manager? Service Product information Target achievers 4. Rate your satisfaction with the services of CRM Excellent Good Average Bad 5. Does he understand your want and need and suggest you products accordingly? Yes No

6. Is he able to convey your messages effectively to the organization authorities and sorts out your problem? Always Some times Never 7. Please rate his communication skills. Excellent Good Average Bad 8. Are you happy with his nature and character?

Yes

No

9. Are you getting information about product charges in detail? Always Some times Never 10. If you get such information, what is the frequency of getting such information? Everyday Once in a week Once in a month Yearly 11. How good is his knowledge about the market conditions? Profound Good Average Little 12. Does he predict the changes in the market correctly? Always Some times Never

13. Does he maintain good contact with you and suggest products according to changes in the market? Yes No

14. Was he able to assist you and help you out of the problems that you faced? Always Some times

Never 15. Is he efficient to meet dead lines? Yes No

16. How do you rank your CRM in the following criteria on the scale of 1to 5, where 5 stands for best and 1 stands for poor Communication 1 Market condition Current affairs Product Services Others 1 1 1 1 1 2 2 2 2 2 2 3 3 3 3 3 3 4 4 4 4 4 4 5 5 5 5 5 5

17. Who is the CRM more loyal to? Company Customer

18. Any suggestions? ________________________________________________________ ________________________________________________________ 19. Personal Information Name : ___________________________ Age :_____________________________ Occupation : _______________________

Phone No:__________________________ Signature :

Suggestions 1)Every Relatioship Manager should know their customers need and wishes.

2) Relationship Manager maintain a positive company images.

3) A RM should be represented as a safe person customers and clients can to go to with requests and complaints.

4) RM should be given training every week