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SUMMER TRAINING REPORT ON

ANALYSIS OF MARKET OPERATIONS OF BUSINESS PARTNERS IN STOCK BROKING INDUSTRY AND ITS FUTURE PROSPECTS

Submitted in the Partial Fulfillment for the Requirement of Bachelors of Business Administration (BBA)

Submitted to: Jyoti K. Arora (Internal Guide) Mr. Rajiv Ranjan (External Guide)

Submitted by: Mahak Kagra 04514101709 Batch-(2009-2012)

Jagannath International Management School Kalkaji, New Delhi


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DECLARATION
I, Mahak Kagra, a student of JAGANNATH INTERNATIONAL MANAGEMENT , hereby declare that the project titled ANALYSIS OF MARKET OPERATIONS OF BUSINESS PARTNERS IN STOCKBROKING INDUSTRY AND its FUTURE PROSPECTS is an original work and has not been submitted to any other academic institution for award of any degree or diploma in full or part by me.

MAHAK KAGRA

ACKNOWLEDGEMENT

I am indeed very happy to acknowledge the numerous personalities involved in lending their help to make my summer project a successful one. Firstly, I would like to thank Reliance Capital Ltd. for providing me the opportunity to work on this project in their subsidiary Reliance Money. I would like to thank my corporate guide Mr. Rajeev Ranjan and all other staff of Reliance Money for helping me in learning the lessons of professional management. His able guidance and valuable inputs have helped me a lot in successfully completing this project. I would also like to extend a heartfelt thanks to Mrs. Jaishree Gupta for providing us with all the required resources and always being very helpful. I express my sincere gratitude to my institute guide Ms. Jyoti K. Arora who

took a lot of personal interest in supervising this project and guiding me. He has been a great source of inspiration in the task of completion of this project work. His profound advice, timely guidance has been of immense value to me. This acknowledgement would not be completed without extending my thanks to my friend, who did their summer internship along with me at Reliance Money Ltd, who helped me clear any doubts that arose during my internship and for extending their support to me during my period of internship.

CERTIFICATE

This is to certify that Mahak Kagra of BBA has completed her summer training project on Analysis of Market Operations of Business Partners in Stock Broking Industry and Its Future Prospects.

Her work is up to my satisfaction.

(Project Guide) JYOTI BATRA

CONTENTS

S.no 1. 2. 3. 4. 5. 6. 7. 8. 9.

Paticulars Industry Profile Company Profile Swot Analysis Competitors Details Research Methodology Findings Recommendations Conclusion Annexure

Page no. 6 23 49 51 56 62 64 67 69

INDUSTRY PROFILE

This project pertains broadly to the financial service sector. In today's corporate and competitive world financial sector has the maximum growth and potential as compared to other sectors. Financial products have the maximum growth rate of 70-80%while FMCG has maximum 12-15% of growth rate.

In last few years, India has emerged as the one of the most rapidly growing economies in the world. India has been categorized with nations like Brazil, Russia and China (BRIC Nations) who are going to be the prime drivers of world economy in next few decades. Since the time, India first opened its gates to foreign investment (FDI & FII), there has been a complete turnaround. Now the traditional Hindu rate of growth is a thing of past and clocking 8%-9% GDP growth rate is the common norm. India along with other Asian powerhouse China makes for the fastest growing nations in the entire world. Even in the case of ongoing global recession, India has managed to perform far better than other nations.' Right from banking system to financial regularities, the country has thrived on discipline and out-performance. The booming Indian economy resulted in widespread growth and arrival of new industries.

All these resulted in a most sparkling phenomenon in the form of financial market renovation of India. Financial services in India has' taken a giant leap from the days of standing in banks queue for several hours for opening a saving account or trying to get some fixed deposits (FD) done. The financial services have increased manifold and now people have the choice to choose the one that most suitably fits the bill. There are several services like broking firms, investment services, financial consulting, evergreen national banks, numerous private banks, mutual funds, car and home loans, equity market and other banking services. Services are many and offered by blue chip names of the industry. Most of the companies in financial segment offer consultancy services and all the services of wide financial gamut. Securities Market Securities Market Past Pre-demat era (under paper based share certificate environment)The investors can be broadly classified into two groups on the basis of process of acquiring equity shares, viz. investors who get allotment of shares in the primary market and investors who purchase shares from the recognized stock

exchanges(secondary market). Some of the risks involved in dealing with physical shares through public issue allotment and secondary market transactions can be identified as follows: - Share certificates are sometimes lost in transit. In that scenario, the investors have to give an indemnity bond to Company, which involves a cost to the investor, besides depriving him of the opportunity to sell the shares at the opportune time. - Time taken to receive the shares is also quite long compared to the present dematerialized environment.

Secondary market operations were fraught with bad paper due to signature differences, forged and fake certificates stolen certificates and delayed transfer resulting in low confidence in the market place. In public issues, Companies were / are incurring several costs in distributing the share certificates to the investors. They are as follows: - Printing of share certificates (@ about Rs 1.00 per certificate), RTA handling charges (@ about Rs 5.50 per folio), actual cost of dispatching by registered post and other expenses. In case of investors purchasing the shares from the secondary market, there are certain costs incurred by the companies. After the shares are transferred into the investors name, the expenses on corporate benefits distribution will be same for all shareholders owning the shares in physical form. Structure and Collection method of charges under paper based share safe-keeping and transfer mechanism. Under this method companies used to incur all expenses pertinent to share transfer in the name of the buyer. These could be classified into two broad categories on the basis their nature: (a) Variable expenses (I)Share Transfer(ii)Maintenance of folio

records.(iii)Custody of physical shares, etc.,(iv)Dividend and other corporate actions (b) Event Specific Expenses (i) Issue of duplicate certificates (ii) Adhoc reports, etc. Individual investor/Institutional investor was required to pay 0.5 percent of purchase value of share as stamp duty under physical environment which has been totally removed under demat conditions. Further, issues pertaining to bad paper like, signature difference, fake or forged certificate, etc. besides delay in transfer, are eliminated and thus investor is a direct beneficiary. The price risk faced by the investor has
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also been eliminated. As per some unofficial estimates, the cost related to the bad paper was to the extent of about 20 percent of the market value of shares. Currently this figure is estimated to be almost nil. Post-trade activities: The post trade activities of the stock exchanges are handled by their respective Clearing house/corporation. In the physical environment, the Clearinghouse/corporation incurred several expenses on various heads as follows: - Physical space required collecting share certificatesSorting them with respect to receiving member. Safekeeping of share certificates delivered at the Clearinghouse/corporation. Insurance costs. Huge human costs incurred for executing pay-in and pay-out activities. Transportation costs incurred in movement of physical share certificates from one metro to other metro for pay-in and pay-out. On the basis of informal discussion, it can be stated that there is drastic reduction in cost of pay-in and pay-out facility. A part of it might have been passed on to brokers/ dealers of the stock exchanges. Further, as it has been observed in the study of M.T. Raju (2000), the brokerage fell significantly during this period for high net worth investors. For small investor, the fall in the brokerage is not proportional even though there is a decline in the brokerage. Early period of demat the regulator, SEBI, had played a significant role in nurturing the promotion and growth of dematerialization for the benefit of all investors and for the cause of developing efficient securities market in India. During the initial period, the depositories used to collect transaction charges as well as custodial charges on ad valorem basis. This is directly related to the value of securities bought or sold and held in custody. Higher values attracted higher fees and vice-versa. There was a feeling under this system that the payment by the high net worth investors and
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institutions was disproportionate to services received by them. In the demat environment, to a large extent, services rendered are invariant to value of transaction. In many other markets, the charges are levied on the basis of number of transactions which is also known as flat fee structure. In India, depositories subsequently switched over to flat fee structure of charges on transactions. . However, notwithstanding this, in India the share ownership pattern is quite different from what it is, in the developed markets, as well as in some of the emerging markets. Considering the role of small investors in Indian capital market, we need to have a cost effective system which will address many of the issues concerning small investors. The dematerialization success story could be partly attributed to individual investor for his full support to the regulatory direction. As it was mentioned in the study of M.T. Raju and Prabhakar Patil (2001), Indian stock markets had taken significantly less time to complete the Herculean task of dematerialization as compared to some of the developed markets like USA, UK, etc. Depository Participants Depository participants (DPs) impose various charges on the institutional as well as on individual clients under various heads for providing services. The services available in dematerialized environment that are extended to the clients are as follows: Dematerialization Rematerialization Custodial services Debit or Credit facility Hypothecation Speed-e along with smart card Corporate benefits like bonus, stock split, dividend payment, etc This is an illustrative list of services available. The system of charging a fee forth services extended to an investor is in two-layers. The Depository charges the DPs and DPs in turn collect fee/charges from the investor. Each DP uses different norms to classify charges depending on the extent of services rendered. NSDL has a provision for
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collecting a one-time fee of 0.05 percent of market capitalization of the company, as custody fees for life. For these companies, no custody charge is supposed to be charged from the investors for life. The list of55 companies that had paid this one time fee is enclosed in Annexure I. However, it is not clear whether DPs are passing this benefit to investors or not for these 55 companies.VI. Charges under the present method FFSThe depositories started charging DPs on FFS basis since May, 2002 and DPs in turn started charging on FFS basis to investors. This system is tilted in favour of high net worth and institutional investors who trade in large quantities. The long-term small investor who trade less frequently feel the unwanted burden of heavy outgo on account of FFS.Custody charges are levied on the basis of ISIN numbers, irrespective of the value of shares in custody. As a result, there is a piquant situation, wherein on one side, the value of shares may be getting eroded while on the other hand the investors are required to pay custody charges that some times exceed the value of shares held in custody. This has been a very sour point. As the value of the holding is small, the charges paid as percentage of value of their holding work out to be very high.

Current and future It is needless to say that the financial markets (banks and the securities markets) finance economic growth. They canalize savings to investments and thereby decouple these two activities. As a result, savers and investors are not constrained by their individual abilities, but by the economys ability to invest and save respectively, which inevitably enhances savings and investment in the
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economy. To the extent the growth of an economy depends on the rate of savings and investment, financial markets promote economic growth. The banks and securities markets are two competing mechanisms to channel savings to investment. The securities markets score over banks in the allocation efficiency, as it allocates savings to those investments which have potential to yield higher returns. This inevitably leads to higher returns to savers on their savings and higher productivity on investments to enterprises. Hence to the extent economic growth depends on the rate of return on investments, securities market promotes economic growth. With this brief background, I propose to talk first about functions of the securities market, then its role and importance in the growth of an economy, then how a liberalized securities market promotes economic growth, then talk about its significance in the Indian economy and finally, significance of the market in the growth of Indian economy. Functions of Securities Market The securities market allows people to do more with their savings than they would otherwise. It also allows people to do more with their ideas and talents than would otherwise be possible. The peoples savings are matched with the best ideas and talents in the economy. Stated formally, the securities market provides a linkage between the savings and the preferred investment across the entities, time and space. It mobilizes savings and canalizes them through securities into preferred enterprises. The securities market enables all individuals, irrespective of their means, to share the increased wealth provided by competitive enterprises. The securities market allows individuals who can not carry an activity in its entirety within their resources to invest whatever is individually possible and preferred in that activity carried on by an enterprise. Conversely, individuals who can not begin an enterprise they like can attract
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enough investment form others to make a start and continue to progress and prosper. In either case, individuals who contribute to the investment share the fruits. The securities market also provides a market place for purchase and sale of securities and thereby ensures transferability of securities, which is the basis for the joint stock enterprise system. The liquidity available to investors does not inconvenience the enterprises that originally issued the securities to raise funds. The existence of the securities market makes it possible to satisfy simultaneously the needs of the enterprises for capital and of investors for liquidity. The liquidity the market confers and the yield promised or anticipated on security encourages people to make additional savings out of current income. In the absence of the securities market, the additional savings would have been consumed otherwise. Thus the provision of securities market results in net savings. The securities market enables a person to allocate his savings among a number of investments. This helps him to diversify risks among many enterprises, which increases the likelihood of long term overall gains. Securities Market and Economic Growth It is strongly believed that a well functioning securities market is conducive to sustained economic growth. There have a number of studies, starting from World Bank and IMF to various scholars, which have established robust relationship not only one way, but also the both ways, between the development in the securities market and the economic growth. An important study by Ross Levine and Sara Zervos (1996) finds that the stock market development is highly significant statistically in forecasting future growth of per capita GDP. Their regressions forecast that if Mexico or Brazil were to
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obtain stock markets as advanced as Malaysia, then they might obtain an additional per capita GDP growth per year of 1.6%. This happens, as market gets disciplined / developed/ efficient, it avoids the allocation of scarce savings to low yielding enterprises and forces the enterprises to focus on their performance which is being continuously evaluated through share prices in the market and which faces the threat of takeover. Thus securities market converts a given stock of invest resources to a larger flow of goods and services. The securities market fosters economic growth to the extent that it-(a) augments the quantities of real savings and capital formation from any given level of national income, (b) increases net capital inflow from abroad, (c) raises the productivity of investment by improving allocation of invest able funds, and (d) reduces the cost of capital. It is reasonable to expect savings and capital accumulation and formation to respond favorably to developments in securities market. The provision of even simple securities decouples individual acts of saving from those of investment over both time and space and thus allows savings to occur without the need for a concomitant act of investment. If economic units rely entirely on self-finance, investment is constrained in two ways: by the ability and willingness of any unit to save, and by its ability and willingness to invest. The unequal distribution of entrepreneurial talents and risk taking proclivities in any economy means that at one extreme there are some whose investment plans may be frustrated for want of enough savings, while at the other end, there are those who do not need to consume all their incomes but who are too inert to save or too cautious to invest the surplus productively. For the economy as a whole, productive investment may thus fall short of its potential level. In these circumstances, the securities market provides a bridge between ultimate savers and ultimate investors and creates the opportunity to put the savings of
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the cautious at the disposal of the enterprising, thus promising to raise the total level of investment and hence of growth. The indivisibility or lumpiness of many potentially profitable but large investments reinforces this argument. These are commonly beyond the financing capacity of any single economic unit but may be supported if the investor can gather and combine the savings of many. Moreover, the availability of yield bearing securities makes present consumption more expensive relative to future consumption and, therefore, people might be induced to consume less today. The composition of savings may also change with fewer saving being held in the form of idle money or unproductive durable assets, simply because more divisible and liquid assets are available. The securities market facilitates the internationalization of an economy by linking it with the rest of the world. This linkage assists through the inflow of capital in the form of portfolio investment. Moreover, a strong domestic stock market performance forms the basis for well performing domestic corporate to raise capital in the international market. This implies that the domestic economy is opened up to international competitive pressures, which help to raise efficiency. It is also very likely that existence of a domestic securities market will deter capital outflow by providing attractive investment opportunities within domestic economy. Any financial development that causes investment alternatives to be compared with one another produces allocation improvement over a system of segregated investment opportunities. The benefits of improved investment allocation is such that Mc Kinnon defines economic development as reduction of the great dispersion in social rate of return to existing and new investments under domestic entrepreneurial control. Instead of emphasizing scarcity of capital, he focuses on the extra-ordinary distortions commonly found in the domestic securities markets of the
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developing countries. The distortions in the real sectors such as monopoly power, tariff protection, import quotas, credit rationing and so forth add salt to injury. In the face of great discrepancies in rate of return, the accumulation of capital does not contribute much to development. A developed securities market successfully monitors the efficiency with which the existing capital stock is deployed and thereby significantly increases the average return. In as much as the securities market enlarges the financial sector, promoting additional and more sophisticated financing, it increases opportunities for specialization, division of labour and reductions in costs in financial activities. The securities market and its institutions help the user in many ways to reduce the cost of capital. They provide a convenient market place to which investors and issuers of securities go and thereby avoid the need to search a suitable counterpart. The market provides standardized products and thereby cuts the information costs associated with individual instruments. The market institutions specialize and operate on large scale which cuts costs through the use of tested procedures and routines. There are also other developmental benefits associated with the existence of a securities market. First, the securities market provides a fast-rate breeding ground for the skills and judgment needed for entrepreneurship, risk bearing, portfolio selection and management. Second, an active securities market serves as an engine of general financial development and may, in particular, accelerate the integration of informal financial systems with the institutional financial sector. Securities directly displace traditional assets such as gold and stocks of produce or, indirectly, may provide portfolio assets for unit trusts, pension funds and similar FIs that raise savings from the traditional sector. Third, the existence of securities market enhances the scope, and provides institutional mechanisms,
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for the operation of monetary and financial policy. While the above indicate that the securities market promotes economic growth, it is not one way relation. The economic growth also promotes securities market, which I am not discussing now. Liberalized Securities Market and Economic Growth Now let me explain how a liberalized securities market helps promote economic growth. The more liberalized a securities market is, the better is its impact on economic growth. Interventions in the securities market were originally designed to help governments expropriate much of the seignior age and control and direct the flow of funds for favored uses. These helped governments to tap savings on a low or even no-cost basis. In some economies governments used to allocate funds from the securities market to competing enterprises and decide the terms of allocation. The result was channelisation of resources to favored uses rather than sound projects. In such circumstances accumulation of capital per se meant little, where rate of return on some investments were negative while extremely remunerative investment opportunities were foregone. This kept the average rate of return from investment lower than it would otherwise have been and, given the cost of savings, the resulting investment was less than optimum. This led mainstream development economists to argue that liberalization of securities market is the road to higher levels of domestic savings/investment and more efficient allocation of capital. The implication of intervention is illustrated in figure 1. The vertical axis represents cost of capital and rate of return on investment and the horizontal axis represents the amount of capital raised from the securities market. With intervention, the demand for investment is represented by DyD, which indicates lower average rate of return corresponding to sub-optimal resource allocation.

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As the level of investment increases to OD, the maximum permitted by the authorities, the average rate of return decreases as relatively less remunerative investments are approved. SS represents the supply of capital. This results in an investment of K. If, however, intervention is withdrawn, rate of return will go up causing a shift in demand for investment schedule to D1D1, which will be down ward sloping through out. This would result in higher investment and consequently income which would shift supply schedule of capital to S1S1. The investment would further increase to K* and rate of return would improve to r*. Rate of return improves because removal of intervention rations out low yielding investments. As the cost of capital goes up, the entrepreneurs are likely to switch to less capital-intensive technologies. Such technologies may not only raise the average productivity of capital, but also represent appropriate technology provided by relative availability and cost of labour and capital in the economy. Letting rate of return be determined by the market mechanism would reduce or even eliminate the costs involved in credit rationing arrangements and thereby enhance the efficiency of the economy as a whole. High rate of return would stimulate demand for financial assets and expand financial sector one of the bitter fruits of intervention has been the shrinkage of the securities market. When subject to effective expropriation through suppressed return on investment, people naturally seek a proper reward elsewhere, either through capital flight, through a retreat to under ground or through the hoarding of goods. People keep their savings out of the markets. The underground sector allocates the resources, but relatively inefficiently. Another major consequence has been insulation of developing countries from international capital markets. The domestic market is shielded from competition. Misallocation of resources can result because of distorting interventions or the presence of market failure either in the goods market or in
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the securities market, which are interlinked. Improvement in allocation efficiency, therefore, requires removal of distortions from both the markets.

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Significance in Indian Economy Three main sets of entities depend on securities market. While the corporate and governments raise resources from the securities market to meet their obligations, the households invest their savings in the securities. I will now dish out a few statistics, mostly taken from the Indian Securities Market Review, a publication of the National Stock Exchange, to indicate the level of significance. While corporate sector and governments together raised a total of Rs. 226,911 crore from the securities market during 2001-02, there are about 20 million investors who have invested in the securities. Tables 1 and 2 indicate the significance of the securities market in Indian economy. The Indian economy witnessed a descent growth of 6% per year in 1990s against euphemistically described as Hindu Growth Rate of 3.5% over preceding four decades. This was possible by contributions mostly by the organized secondary and tertiary sectors (industry and service). The securities market helped these organized sectors, corporate and government, to raise resources to realize a growth rate of 6%. Of late the activity in the securities market has slowed down, so also the level of activity in the economy. Regulatory Environment The regulation of the Indian securities market is one of the best frame works of regulation among the world. The securities and exchange board of India is the main regulatory body for Indian securities market. SEBI was formed under the SEBI Act, 1992 for the purpose of protecting the small investors rights and this organization has been working for this purpose very efficiently and hardly. It has formed many rules and by laws for efficient regulation of Indian securities market. Some of the regulations for the securities market are highlighted below.
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SEBI Act, 1992 CHAPTER I (Preliminary) CHAPTER II (Establishment Of The Securities And Exchange Board Of India) CHAPTER III (Transfer Of Assets, Liabilities, etc. Of The Existing Securities And Exchange Board To The Board) CHAPTER IV (Powers And Functions Of The Board) CHAPTER V (Registration Certificate) CHAPTER VI (Finance, Accounts And Audit) CHAPTER VIA (Penalties and Adjudication) CHAPTER VIB (Establishment, Jurisdiction, Authority and Procedure of Appellate Tribunal CHAPTER VII (Miscellaneous) Depositories act, 1996 CHAPTER I (Preliminary) CHAPTER II (Certificate Of Commencement Of Business) CHAPTER III (Rights And Obligations Of Depositories, Participants, Issuers And Beneficial Owners) CHAPTER IV (Inquiry And Inspection) CHAPTER V (Penalty) CHAPTER VI (Miscellaneous) In addition to above mentioned acts, Securities Contracts (Regulation) Act, 1956 is there for regulation.

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COMPANY PROFILE Reliance Money, a Reliance Capital company, is part of the Reliance Anil Dhirubhai Ambani Group. It is a comprehensive financial services and solution provider providing customers with access to ~ Equity ~ Equity and Commodity Derivatives ~ Portfolio Management Services ~ Mutual Funds ~ IPOs ~ Life and General Insurance and ~ Gold Coins ~ Customers can also avail Loans, Credit Card, Money Transfer and Money Changing services.

Inception of Reliance Money Reliance Money started operations in April 2007. The company is adding about 2,000 to 2,500 customers every day. It currently has about 1.65 lakh customers and the traded volumes have crossed about Rs 1,200 crore. It has tied up with Chicagobased Alaron Trading Corporation, a global, full-service commodity futures brokerage firm. !'Expanding our global presence, especially with a company of the stature of Reliance Money, allows Alaron to seamlessly embrace the rapid expansion in the futures market," Scott Slutsky,. Managing Director of Alaron Trading, told news agencies. Alaron's trading platforms offer direct access to virtually every electronic and pit-traded contract in the world. Reliance Money will facilitate the trading process through its 88 branches and 2,200 outlets in India."Through this important window provided by Alaron, our customers in India
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will be in a position to readily trade international commodity futures in a cost effective, convenient, and secured manner," said Sudip Bandyopadhyay, Director of Reliance Money. The Reliance - Anil Dhirubhai Ambani Group is among India's top three private sector business houses on all major financial parameters, with a market capitalization of Rs.325,000 crores (US$ 8 billion), net assets in excess of Rs.115,OOO crores (US$ 29 billion), and net worth to the tune of Rs.55,000 crores (US$ 14 billion). Across different companies, the group has a customer base of over 100 million, the largest in India, and a shareholder base of over 12 million, among the largest in the world. Through its products and services, the Reliance - ADA Group touches the life of 1 in 10 Indians every single day. It has a business presence that extends to over 20000 towns and 4.5 lakhs villages in India, and 5 continents across the world. Mr. Bandyopadhyay says, "We haven't entered this business to take a share in this market. We are going to expand the market."He explains, 'The number of investors in mutual funds is about 30 million going by the folios. The number of individual bank accounts in the country is about 330 million. But the number of demat accounts has stagnated around 5.8 million for the past decade." Reliance Money is an all-India presence and a reach that is on a par with what State Bank of India enjoys with about 9,500 branches.. Reliance Money's key business driver may be its pricing strategy. It has decided to levy a flat charge of Rs 500 per annum for trading volumes of up to Rs 1 crore and slightly higher charges for higher volumes. Currently competing brokerages charge something in the region of 0.5% to 1% on each transaction.

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As Mr. Bandyopadhyay puts it, "Brokers charge you 1% if you buy 10 shares. They charge someone else 1% of the cost of 100 Shares, if they buy 100 shares and similarly 1% of 1,000 shares if you buy 1,000 shares. There is no extra effort involved except punching in an extra zero. Why pay just to punch an extra zero?"

Objective of the company The main objectives of the company are as follows To attain global best practices and become' a world-class financial services enterprise guided by its purpose to move towards greater degree of sophistication and maturity. To work with vigor, dedication and innovation to achieve excellence in service, quality. Reliability, safety and customer care as the ultimate goal. To earn the trust and confidence of all stakeholders, exceeding their expectations and make the Company a respected household name. To consistently achieve high growth with the highest levels of productivity. To be a technology driven, efficient and financially sound organisation. To contribute towards community development and nation building. To be a responsible corporate citizen nurturing human values and concern for society, the environment and above all the people. To promote a work culture that fosters individual growth, team spirit and creativity to overcome challenges and attain goals. To encourage ideas, talent and value systems. To uphold the guiding principles of trust, integrity and transparency in all aspects of interactions and dealings.

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Milestones Achieved so for In last 12 months Reliance Money have taken giant strides. It has been: India's Top Broking and Distribution house.. The largest broker with distribution reach of 20,000+ touch points, 10,000+ outlets across 4000 towns/cities 1 lakh transactions on an average, in the money transfer business. Amongst the largest private sector partners of Western Union Money Transfer in India.

Growth of the organization The growth of the company is driven by 8 success sutras adopted by it namely trust, integrity, dedication, commitment, enterprise, hard work and team play, learning and innovation, empathy and humility. Reliance Money generated revenues of Rs.35 billion (US$ 767 million) for the year March 31, 2009 as against Rs.24 billion of the corresponding previous period, an increase of 48%. It also achieved net profit ofRs.368 million (US$ 8 million) for the same period, as against a net profit of Rs.1 million for the corresponding previous period. Reliance Money is amongst the leading mutual fund distributors of the country distributing products of 20 AMes. It is the largest private sector partner for Western Union Money Transfer in India. The Rs 352 crore online broking and distribution major, Reliance Money, is the first mover in deploying technology tools across its operations. Having all of its operations automated with tightly controlled risk management. Mr. Bandhyopadhyay believes IT brings in and finds that technology usage would ensure high data availability, accuracy and integrity to the trading business and help differentiate oneself from the competition. The IT head,
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Nagaraj, has left no stone untamed in driving the IT benefits to users. Being a strategic planner, Nagaraj has evolved a clear IT blueprint categorizing IT under three portfolios such as expansion, strategic and sustenance which address all challenges as a cost control, mitigating risk, and helping in expansion to address a larger audience. Reliance Money generated revenues of Rs. 35 billion (US$ 767 million) for the year March 31, 2009 as against Rs. 24 billion of the corresponding previous period, an increase 'of 48%. It also achieved a net profit of Rs. 368 million (US$ 8 million) for the same period, as against a net profit of Rs. 1 million for the corresponding previous period. This increase was primarily due to the expansion of the distribution network and increase in its customer base. Growth Drivers of Reliance Money.
TRUST

ENTERPRISE

INTEGRITY

HARD WORK & TEAM PLAY

GROWTH DRIVERS FOR RELIANCE MONEY

DEDICATION

EMPATHY & HUMANITY LEARNING & INNOVATION

COMMITIMENT

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Reliance Money is a comprehensive financial. services and solutions provider, providing customers with access to equities, equity options and commodities futures, wealth management, portfolio management services, mutual funds, IPOs, life and general insurance~ products, offshore investments, credit cards, money transfer, currency exchange and gold coins. Reliance Money has tied up with global partners like Reuters, Vasco, Valcambi, Webaroo, OptionsXpress Holdings, Goldride Securities, Wodd Gold Council, Wincor Nixdorf and DBS Vickers to facilitate better access to wider world class choices to its customers. In addition to the home-grown portfolio of products and services that Reliance Capital has to offer, Reliance Money also distributes a variety other~ party financial products. It also assists millions of investors. in creating customized individual portfolios based on their diverse investment needs and risk profiles. Reliance Money is amongst the leading Mutual fund distributors of the country distributing products of 20 AMCs. It is the largest private sector partner for Western Union Money Transfer in India. To further improve its position in the money changing and money transfer business, Reliance Money has acquired a significant share holding in Wall Street Finance Ltd, a leading provider of money changing and money transfer services in the Country. Reliance Money has tied up with Kuoni India and plans to retail its forex products/ services through the national network of over 70 Kuoni outlets. Reliance Money has tied up with India Post and World Gold Council to sell gold coins through the post office network across the country.
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Reliance Money has obtained Category - I Merchant Banking License from the Securities and Exchange Board of India. This new license allows Reliance Money to provide a wide range of investment banking services such as Issue Management, Underwriting, Private Equity Advisory/ Syndication and Corporate Finance services in India. Reliance Money is taking its first steps into the Commodities Exchange business and is in the process of acquiring a 15 per cent stake in Hong Kong Mercantile Exchange (HKMEx). With this holding, Reliance Money becomes the second-largest shareholder in the commodity exchange and will have a board membership. Reliance Money is the first Indian finn to acquire a stake in an international exchange. It has also obtained approval from, the Ministry of Consumer Affairs for acquiring 10% stake in the National Multi-Commodity Exchange of India Ltd. (NMCE). Nature of the business carried Reliance money is carrying business such as it is giving a service of online trading with less brokerage Charge, and it also having financial products such as Life Insurance . General insurance giving investment facility in Equity, mutual fund, PMS, and also it is carrying a . money transfer and money exchange, and also dealing with gold coins.

Vision Mission and Quality Policy Vision

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The vision of Reliance Money is to achieve & sustain market leadership, Reliance Money shall aim for complete customer satisfaction, by combining its human and technological resources, to provide world class quality services. In the process Reliance Money shall strive to meet and exceed customer's satisfaction and set industry standards. Mission The mission of the company is to be a leading and preferred service provider to our customers, and we aim to achieve this leadership. position by building an innovative, enterprising, and technology driven organization which will set the highest standards of service and business ethics. Quality policy Talented, efficient and competent team of youngsters rolling out high profile applications for the global business community, keeping in mind true quality, total customer satisfaction, delivering on time, right time, every time.

Creatively involved in providing high quality products and services through: Responsiveness to customer needs. Provision of work satisfaction and promising careers. . Constant measurement and monitoring of all operations. Continuous improvements of procedures, products, and services; and Performance of operations in a responsible manner. Product and service profile 'Reliance Money provides a comprehensive platform, offering an investment avenue for a wide range of asset classes. Its Endeavour is to change the way India transacts in financial markets and avails financial services. Reliance Money currently offers its services in Broking and Distribution of Financial Services and Products.
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Equity Separate Dealing Room for HNI, Institutional & Corporate Clients at the head office in Mumbai, manned by expert dealers Relationship Manager assigned for each large relationships. Tools that help plan investments, tax, retirement, etc. Risk profile analyzer Asset allocators to build an appropriate investment portfolio..

Equity and Commodity Derivative Trading and Clearing membership of BSE, NSE, MCX and NCDEX providing broking services in Equity, Equity & Commodity Derivatives Option of on-line as well as off-line trading Trading is completely secure with 3 levels of security i.e. User ill, Password and Security Token, which is available only with Reliance Money Portfolio Management Services (PMS) Investors get regular statements and updates on the investments Investors get access to Relationship Managers Financial Advisors through whom they dill interact with Fund Managers to discuss their portfolio

Wealth Management Services End to end Wealth Management Services. Assessing financial health and risk profiling of the client. Tax Advisory includes buying, selling, renting and valuation of properties.. Mutual Funds Distribution of equity and debt products from leading AMCs including structured products such as Portfolio Management Services.
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Financial Planning Through SIPs. Systematic Investment Plans (SIPs) SIP is a method to increase exposure to equities gradually over a long period of time say over 5-10 years by investing in equity funds by using the concept of rupee cost of averaging. Disciplined investing in equity funds over longer time frames coupled with power of compounding helps generate superior returns. SIP provides better downside protection as the amount invested each month is very small compared to the overall investment.

IPO IPO Distribution: Reliance Money distributes all IPOs (Book Building as well as Fixed Priced) pan India through its distribution channel (Online + Offline) and helps get IPO Investment benefits by providing end to end assistance Life and General Insurance Life Insurance Reliance Money provides Life Insurance that helps provide financial assurance and securities for your dependents and loved ones. Life Insurance products offer comprehensive financial solutions which besides offering financial security also provide opportunity for saving, investment and tax planning.. General Insurance Reliance Money extends various General Insurance products with an exhaustive range of insurance policies that covers most risk including Motor, Health, roperty, Marine, Casualty, Credit and Liability Pure Gold Coin
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Gramm age: 0.5 gram, 1 gram, 5 gram and 8 gram, Pure Gold Swiss Coins Purity: 24 carat, 99.99% pure Fineness: 999.9 (Highest purity that can be achieved in Gold) Packaging: Available in a see through, tamper-proof packaging with a certificate of purity from Swiss Assayer Availability: All India, across all Reliance Money and Reliance World outlets Money Changing. Reliance Money Express is a Full-Fledged Money Changer (FFMC) authorized by the Reserve Bank of India for foreign exchange transaction Sales and Purchase of Foreign Currency Notes. American Express Traveler's Cheques and Prepaid Foreign Currency Area of operation o Reliance Money offers the services not only all over India but also outside India. Reliance o Money is one of the leading brokerage and distributors of financial products in India with more than 3.3 million customers. Operation in India As on March 31, 2009, Reliance Money had a distribution network of 10,350 outlets across 5,165 locations in India. TABLE 1 : Detail Scale of Operation of Reliance Money In India Scale Of Operation No of outlets Franchise Owned No. of broking accounts
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On 31st March 2010 10350 10125 225 1010000

On 31st March 2009 8512 8279 233 713636

Total no. of customers 3300000 Daily average stock exchange turn over ( 15 Billion) Reliance Money has over 96 offices all over India. Overseas Branches of Reliance Money Hong kong Malaysia Muscat Nigeria

2000000 15

2.6 Ownership pattern Reliance Capital is one of India's leading and fastest growing private sector financial services companies, and ranks among the top 3 in terms of net worth. Reliance Money, a Reliance Capital company, is part of the Reliance Anil Dhirubhai Ambani Group. It is a comprehensive financial services and solution provider providing customers with access to Equity, Equity and Commodity Derivatives, Portfolio Management Services, Mutual Funds, lPOs, Life and General Insurance and Gold Coins. Customers can also avail Loans, Credit Card, Money Transfer and Money Changing services. The largest braking house in India with over 2.5 million customers and a wide network of over 10,000 outlets and 20,000 touch points in 5,000+ locations. The average daily volume on the stock exchanges is Rs. 2,000 crores, representing approximately 3% of the total stock exchange volume. The Reliance - Ani! Dhirubhai Ambani Group has a market capitalization of Rs.325,000 crores (US$ 81 billion), net assets in excess of Rs.115,OOO crores
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(US$ 29 billion), and net worth to the tune of Rs.55,000 crores (US$ 14 billion). Across different companies, the group has a customer base of over 100 million, the largest in India, and a shareholder base of over 12 million, among the largest in the world. It has a business presence that extends to over 20000 towns and 4.5lakhs villages in India and 5 continents across the world.

FOUNDER OF RELIANCE Few men in history have made as dramatic a contribution to their country's economic fortunes as did the founder of Reliance, Sb. Dhirubhai H Ambani. There is more than one unique way of describing the true genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of India's capital markets, and the champion of shareholder interest. When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted this fledgling enterprise into a Rs 60,000 crore colossus-which earned Reliance a place on the global Fortune 500 list, the first ever Indian private company to do so. Dhirubhai is widely regarded as the father of India's capital markets. In 1977, when Reliance Textile Industries Limited first went public, the Indian stock market was a place patronized by a small club of elite investors which dabbled in a handful of stocks. Dhirubhai always kept the interests of the ordinary' shareholder uppermost in mind in the process making millionaires out of many of the .initial investors in the Reliance stock, an creating one of the world's largest shareholder families.

CHAIRMAN'S PROFILE Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil D Ambani, 50, is the chairman of all listed companies of the Reliance ADA
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Group, namely, Reliance Communications, Reliance Capital, Reliance Energy, Reliance Natural Resources and Reliance Power.

Infrastructural facility The Reliance money financial service ltd, is located in Bangalore- Ulsoor The company has rented property: Total Area rented by the company is located Built in Area of the company : 3,000 square feet. : 2,800 square feet.

All the member of the company employees are good in communication. Also good information air technology support is available. Cleanliness is given utmost importance in the company. There are air- conditioners, proper lighting and ventilation and Tele communication facilities. The Reliance money company also provides Travel allowances, and Medical allowance facilities to the employees and parking facility is also available.

TECHNOLOGY With over 50000 sq ft of built infrastructure they have used technology to enable their business and delivery services with cutting edge technology. They have established a dedicated technology data at with built-in all purpose redundancies to support their clients. The various aspects with regards to infrastructure are described below:

HARDWARE Reliance money has invested in state-of the-art infrastructure for its data and server farms and has tied up with leading technology companies for supply of class server hardware and high workstations They provide continuous systems integration and
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support for the facilities at their office. The server infrastructure support hybrid platforms and it has been designed for high availability transaction volumes. The work desks are occupied with finest workstation at operational levels.

SOFTWARE DEVELOPMENT The Reliance money in-house development team is fully occupied with the latest tools of development and are trained and certified periodically with the industry best practices by experts from the industry.

NETWORK The local area networks are deployed using Cat6 cables for data and Cat6 cables for voice with the fancily to create segregated virtual user and corporate LANS. More recently Reliance money has also started migrating to the MPLS network to connect with their branches and provide world class infrastructure at each of our location.

Key Achievements. Reliance Money has achieved many milestones like Awarded 'Franchiser of the year' award (service industry) in 6th International Franchise & Retail show 2009. Runner up of 'Best e- Brokerage' award from Outlook Money- NDTV Profit for 2008 Awarded 'The Debutant franchisor of the year' at the 5th International Franchise and Retail Show 2007, New Delhi. Rated No.1 Broking House in India by Starcom.

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Awarded the 'Red hat World is open Award' for launching highly successful internet Trading Kiosk. The award and the process was driven by Stock Consultancy Private Limited. Awarded the 'Employer of Choice Award' for creating opportunities for the youth in the Financial Services Sector. The award was given by the Indira Group of Institutes, Pune. Mr. G.N. Nagraj, CTO, Reliance Money has been awarded the 'CIO of the year Award' by IT people.

2.10 Work Flow Model.

Reliance money

Bank interface

Surveillance.

Administrative server.

BSE/ NSE terminal.


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D P Interface.

2.11 Future .Growth & prospects The growth of financial sector in India at present is nearly 8.5% per year. The rise in the growth rate suggests the growth of the economy. The financial policies and the', monetary policies are able to sustain a stable growth rate. The reforms pertaining to ~he monetary policies and the macro economic policies over the last few years have influenced the Indian economy to the core. The major step towards opening up of the financial market further was the nullification of the regulations restricting the growth of the financial sector in India. To maintain such a growth for a long term the inflation has to come down further. The financial sector in India had an overall growth of 15%, which has exhibited stability over the last few years, although several other markets across the Asian region were going through turmoil. The development of the system pertaining to the financial sector was the key to the growth of the same. With the opening of the financial market variety of products and services were introduced to suit the need of the customer. The Reserve Bank of India (RBI) played a dynamic role in the growth of the financial sector of India.

Future prospect of Reliance Money

Reliance Money, the financial services arm of Reliance Capital Ltd, plans to launch portfolio management services (PMS), where managers will create a basket of stocks for each client, based on individual needs, for amounts as low as Rs5 lakhs. Such services are popular in India but, almost all the offerings of large
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finance companies target high net worth individuals (HNIs) with the ability to invest Rs l crore and above. Reliance Money, which helps clients invest in equities, derivatives and commodities, will typically offer such services for amounts between Rs5 lakhs and Rs75 lakhs; Rs5 lakhs is the smallest amount the industry's regulator mandates for PMS. Reliance Money will launch its PMS ion December and will especially target executives and professionals in metros and smaller towns. Reliance Money would not take a fee unless the portfolio earns a return higher than 8%. If the client earns a return of 8-20%, the fee charged will be 10% of the absolute returns and if the client earns more than 20%, the fee will be 20%. The company: plans to offer a large-cap investment portfolio (where the stocks invested in will be those of large-cap companies), blue chip portfolio (blue chip companies) and an infrastructure portfolio (companies in the infrastructure sector).Reliance Money, which started operations in April, already has around 250,000 invest or accounts and 3,000 outlets by law, while others are optional agreeing to the terms of an insurance policy.
TRUST

ENTERPRISE

INTEGRITY

HARD WORK &

TEAM PLAY

GROWTH DRIVERS FOR RELIANCE MONEY

DEDICATION

EMPATHY & HUMANITY

COMMITIMENT

41 LEARNING & INNOVATION

3.2 Strategy Strategy is the planning devise to maintain and build competitive advantage over the competition. The main strategies made by Reliance money good quality services to their clients. to attain global best practices and become world class financial services enterprise- guided by its purpose to move towards greater degree of sophistication and maturity. To adapt new technologies fast. The main strategy is to maintain the consistency in quality and provide

RELIANCE CAPITAL

Reliance

Reliance General Insurance

Reliance Life Insurance

Reliance Money

Reliance Consumer Finance

Business needs to be organized in a specific form of shape that is generally referred to as organization structure. It constitutes the basic organization of the company, its department, reporting lines, areas of expertise and responsibility.

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Reliance Money has 6 departments and the details of the same are as following Departments of Reliance Money

Reliance Money

Sales & Distributions Department

Marketing Department

Human Resources Department

Operations Department

Administration Department

Finance Departmen t

3.4 Administration Department Administrators are basically facilitators of the company. They take care of all the facilitating activities of all the departments. They help in coordinating different activities in an organization from selecting the location of the outlet to providing necessary infrastructure and maintaining the same. Main Activities of Administration Department: Selecting the location. Providing with the required infrastructures like computers, furniture, fittings & fixtures, air conditioners etc. Providing the storage facility. Looking after Marketing, Branding, and Legal, Sales and Distribution, payment of salaries to day activities Sales and Distribution Department In Reliance Money sales and distribution department plays an important role in the following way Collecting the leads from the website, kiosks and trainees. Contacting the clients through direct contact or mails.
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and other payments required for the functioning of day

Explaining the features of the products. Explain about the essential documents. Facilitate the customers with a Demo. Marketing Department Marketing is the delivery of customer satisfaction at a profit. Marketing, any other business function deals with customer. Creating customer value and satisfaction are the heart of the modem marketing. Therefore two fold goal marketing is to attract new customers by promising superiors value and to keep current customers by delivering satisfaction. In Reliance Money marketing highlights on Understanding consumer needs and wants. Value satisfaction and quality. Products and services. Exchange, transfer and relationship.

Human Resource Department HR adds considerable value when it creates a customer focused corporate culture. In Reliance Money they follow that HR professional must be highly knowledgeable about the market place for capital, products and services. HR must not only be knowledgeable of specific customer issues, but also of key aspects of the macro-societal environment such as: Changing values. Major problems and the challenges, which are shared by the large segments of the population. Structures of inter-personal relationship that influence buying process. Talent management.
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HR Functions in Reliance Money: Talent acquisition Talent development Talent management

Figure 5: Human Resource department of Reliance Money


Talent Acquisition National Head Zonal Head Regional Head

Reliance Money Head HR

Learning & Development

National Head

Zonal Head

Talent Management

Operation Department The role of operation department is to carry out the policies and underwriting works. The other functions include performing the day to day activities as well as smooth functioning of enterprise business. Following are the important functions of the operations department of Reliance Money
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Issuing the policies. Verification of the documents. Settling down the claims. Charges deduction. Dispatching the policy documents. Settling the customer's problems. Making records related with the customers. Follow up. Finance Department Finance is the life blood of the organization it is one of the main departments in the company. To run any organization it should have sufficient fund and it should carry the cost as minimum as possible. The company may arrange required finance by the way of the equity fund or by way of debt fund. Whatever it may be the ultimate goal of the finance department is to maximize that value of the firm to its equity shareholders. Responsibilities of Finance Department in Reliance Money are: To provide account and complete systematic information of financial activities To maintain all the books of account and other financial documents To prepare periodic financial statements have the company like Profit & Loss account and Balance Sheet.

The Four Main Functions of Finance Department of Reliance Money are Financial decision Investment decision Dividend decision
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Capital structure decision

3.5Skills It means the actual skills and competencies of the employees working for the company and the company itself what the company does the OOst- the distinctive capabilities and competencies that reside in the organization. Reliance Money is best known for its network. It's all India presence gives a competitive look. The company is doing well in adopting new products and services.

3.6Style All organizations have their own management style. The style refers to how managers behave in an organization and how collectively spend their time to achieve the organizational goal. In Reliance Money the leadership is not much effective as the groups are not performing as real team. In the team also they have competition which affects the team culture. 3.7 Systems The systems consist of formal and informal procedures, including innovation systems, compensation systems. The systems also include data collection, storage and utilization for record and appraisal purposes. (Management information systems i.e. reports of various departments, financial information system i.e. marketing and sales information, employee information system.

3.8 Staff The staff of Reliance Money is divided into national head, regional head, zonal head, cluster head and centre manager, minimum education for the managers is master degree in MBA and work experience.
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Reliance money adopts various training facilities to, Upgrade the skills of the employees Enable the employees to contribute towards organizational objectives. Facilitating a self learning The company has developed skills and expertise in sales and marketing of Demat, insurance, and other products

3.9 Shared values Shared values also refer to the values and beliefs of the company. The value helps the members in the organization to achieve effective goals. The Reliance Money is committed to abide to the following values and responsibilities: Be a lean, responsive and learning organization. Continuously improve to achieve world-class standards and total customer satisfaction. Maintain cost effective service to the customer. Ensure a common culture and a common set of values throughout the organization Recognize individuals' contributions. Develop stronger leadership skills, greater teamwork and a global perspective.

SWOT ANALYSIS SWOT analysis means analysis of the internal strengths and weakness of the company and also analysis of external opportunities and threats of the company.
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Strength On line share trading. Flexible organization Low brokerage services High speed trading Brand name of the Company. No hidden charges. Customer education center Convenient & Safe Single - Window Access Cost effective Value-Added services Weaknesses
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No Service in Rural Segment. Clients are still comfortable with traditional way of trading. For the intraday system automatically sell the shares at 2.55pm

Opportunities More Potential Market. Awareness through Media. Foreign Direct Investments & Foreign Institutional Investors in Indian markets.

Threats Market fluctuations Government polices and war atmosphere from neighboring countries. Competition from banks and insurance sectors. Indian market is still in the infant stages in online trading. Internet is not available in major part of the nation.

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Competitors Reliance money has many competitors in the market. These competitors are always there to stop it from progressing. Some of the competitors are as follows 1. ICICI securities 2. H. D.F.C. securities 3. Marwadi 4. 5 Paisa.com 5. Karvy

ICICI Securities Limited is Indias leading full service investment bank with a dominant position in all segments of its operations - Corporate Finance, Fixed Income and Equities. It is a subsidiary of ICICI Bank, the largest private sector bank in India and operates out of Mumbai with offices in New Delhi, Chennai, Kolkata, New York, London and Singapore. Under the able leadership of Mr. Mukherji, Managing Director and CEO, ICICI Securities
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continues to grow as reflected in its performance over the past couple of years. The Corporate Finance team has consistently been among the top players in M&As and fund raising from domestic and international capital markets. The Equities team is a major Indian brokerage house and its research covers over 90% of Sensex market capitalization. The bond research of the Fixed Income team is a benchmark for the industry. The eminent position of ICICI Securities is reflected in the number of awards that our teams in the Fixed Income, M&A and Equity Capital Markets win. Our Fixed Income team for the last two years (CY04 and CY05) has been adjudged as the Best Bond House in India by both Asiamoney and Finance Asia. The Equities team was adjudged as the Best Indian Brokerage House-2003 by Asiamoney. The Corporate Finance team tops the M&A/Capital markets league tables regularly.

Our wholly owned subsidiary, ICICI Brokerage Services Limited (IBSL), buys and sells equities for our institutional clients. ICICI Securities has a U.S. subsidiary, ICICI Securities Inc., which is a member of the National Association of Securities Dealers, Inc. (NASD). As a result of this membership, ICICI Securities Inc. can engage in permitted activities in the U.S. securities markets. These activities include dealing in securities markets transactions in the United States and providing research and investment advice to US investors.

HDFCsec

is

a
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brand brought to you by

HDFC Securities Ltd, which has been promoted by the HDFC Bank & HDFC with the objective of providing the diverse customer base of the HDFC Group and other investors a capability to transact in the Stock Exchanges & other financial market transactions. HDFCsec will equip you with the necessary tools to allocate, select and manage your investments wisely, and also support it with the highest standards of service, convenience and hassle-free trading tools. Our mission is to provide our customers with the most useful investment guidance and investment-related services available in the country. We want to become a one-stop solution for all your investment needs, one that will help you get the most out of your money. We are one of the leading online broking houses in India, with a dominant position in both institutional and retail broking. Products & Services

Online trading for Resident & Non Resident Indians. Cash-n-Carry on both NSE and BSE. Day trading on both NSE and BSE. Trade on Futures & Options on the NSE. Online IPO's. Telephone-based Broking (Equity & Derivatives).

Later, our service range will be enhanced to include the following:


Online Buying and selling of select mutual funds units Online Purchase of insurance policies
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Facilitating asset financing (house and car loans for instance).

Marwadi Group is a decade old financial service group offering Stock-broking and Commodity broking through NSE, BSE, NCDEX and MCX. We also offer depository services as DP of NSDL and CDSL. We spread through out India with our 33 plus branches, 400 plus business associates and manpower strength of over 300 employees. We firmly believe in customer centric and transparent approach which is backed up by strong technological support. About 1,00,000-customer base, whose various investment needs are served indicates our index of customer credibility. We have always been driven by a desire to create values for our customers-First approach, ethical and transparent business practices, reverence for professionalism and implementation of cutting edge technology. We strive to provide with the best services and make our clients' life as simple as possible. And this has enabled us to flourish into one of the top-50 stock broking houses in India. A convincing index of our customer loyalty is that nearly 75% of our customers have been with us for a period of more than three years. This means that a bulk of our customers have subscribed to our services on a long term-basis. Marwadi Group strength lies in its team of confident, young, talented, qualified and experienced professionals to carry out different functions under the able leadership of its management.

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INTRODUCTION TO RESEARCHResearch is a careful investigation or inquiry especially through search for new facts in any branch of knowledge -Research is a systematized effort to gain new knowledge -Research is a movement from the known to the unknown -Research is a voyage of discovery. TYPE OF RESEARCHThe research study was a descriptive research; the objective of descriptive research is to portray accurately the characteristics of a particular individual, situation or a group. Descriptive research includes surveys and fact-finding enquiries of different kinds .The major purpose of descriptive research is description of the state of affairs as it exists at present .In social science and business research often used term is Ex Post Facto Research for descriptive research studies. The main characteristics of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening .Most Ex post facto research projects are used for descriptive studies. Descriptive research includes attempts by researchers to discover causes even when they cannot control the variables .The methods of research utilized in descriptive research are survey methods of all kinds, including comparative & co relational methods.

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RESEARCH APPROACHThe approach in this study is Quantitative. Quantitative approach to research is concerned with mass assessment of opportunities that can be made by the assessment of the data. Objective of Study Research process was undertaken to assess the market growth and opportunities in the equity trading sector for Reliance money. The basic purpose of the research was to know the market conditions by knowing the preference and expectations of the share brokers with respect to the services provided to them by their individual brokers. This in turn would lead us to know about the services they desire and the potential this market holds which can be grabbed by putting through the right foot forward by providing the adequate services and gaining a good market share. Moreover the database that would be maintained in the process would automatically be stored with the organization that can help us in gathering huge clientele and generate good business out of them. Also the we are backed by a big brand name and this would give us an opportunity to clearly make the market believe in the huge potential that Reliance can provide and how they can develop their business. Limitations: The project has been subject to the following limitations:
o o

The study was restricted to only in the state of Delhi only. The study is conducted with the data available and the analysis was made accordingly.
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It was tough to get all relevant facts from the personnel and employees concerned due to some secret document not provided by the business organization, which is inherent in an industry.

Time factor was a limitation as only a stipulated period had been ascertained to me while the personnel had little time to my queries due to their daily busy schedule.

It is not feasible to compare all the products of various brokerage firms.

At times due the fluctuating market conditions many of the times the respondents were not fully cooperative for the data collection.

RESEARCH PROCESS The research process consists of series of actions or steps necessary to effectively carry out the research. The different steps which were taken in this research work are as under(1)-Defining the research problem. (2)-Specifying research objective. (3)-Preparing research design. (4)-Data collection method. (5)-Selecting the sample type or source. (6)-Determining the sample size. (7)-Organizing and carry out the field work.
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(8)-Analyzing the collected information. (9)-Conclusions and suggestions to the company. Firstly the research problem was identified i.e. the problem for which research is necessary (In this research the research problem is the ANALYSIS OF MARKET OPERATIONS OF BUSINESS PARTNERS IN STOCK BROKING INDUSTRY AND ITS FUTURE PROSPECTS) after this the research objective is specified which is to collect data from the different respondents & analyze it to go to the findings. The next step is to prepare a research design which is as underResearch DesignResearch Design means to state the conceptual structure within which research would be conducted. Data Collection MethodThe data collection method was data collection through questionnaires directly filled by the respondents.

Sample Type The sampling was deliberate sampling or convenience sampling. Convenient was used to get information from the sources which were most liable to give accurate information.
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Source of Data The data used was primary data only collected directly by the use of questionnaires. Primary Data can be defined as the data which are collected a fresh and for the first time and thus happen to be original in character. The respondents selected were the share brokers in New Delhi selected from different locations acc. to the convenience. Sample sizeThe number of respondents taken to be were 50 while selection the sample size case has been taken such that it fulfills the requirements of efficiency, reliability and flexibility. Research Methodology is the way to solve the research problem. It considers the logic behind the study and explains why we are using a particular method and why we are not using others, so that the results are capable of being evaluated by the researcher himself or by the others.

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FINDINGS
The findings from this research are on the below mentioned points 1. Quality of the services offered by the brokers to the sub brokers & authorized persons on the dimensions of
o o o o

Product & training support. Transaction & processing support. Marketing & promotional assistance. Additional products & services availability.

2. - Availability of different financial products & serviceso o o o o o o

Life insurance. General insurance. Mutual fund. Advisory services. Wealth management. Money transfer. Loans, credit cards & gold investment.

3. The benefit of goodwill, recognition & business reputation of your broker to your business.

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RECOMMENDATION
The most vital problem spotted is of ignorance. Investors should be made aware of the benefits. Nobody will invest until and unless he is fully convinced. Investors should be made to realize that ignorance is no longer bliss and what they are losing by not investing.
o

After sales services and follow up calls are important for getting new references so trained telesales should be appointed for this purpose whose sole work should be to make feedback calls.

Reliance is having too many financial products right from Demat account to General Insurance and not all the salespeople are familiar with each and every product so the work force should be segregated each group dealing in a specific product and the sales target should be given likewise.

While interacting with the investors I found that most of the customers are unaware about the Mutual fund. Some of the people look upon mutual funds and equity trading as gambling. Thus a mutual fund awareness program can help to increase the penetration of mutual funds in the market.

Rs750 account opening charges are too high when targeting a corporate so the company should be flexible on this amount.

Reliance should provide periodic training for updating the product knowledge of various financial advisors.

Company should have a scheme of rewards and recognition to employees and the field persons to boost their motivation.

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There must be proper advertisement of the company by various media like Exhibition, Press releases, Newspaper, and Television etc.

There should be a good research team who has to survey the market and know about the clients satisfaction level and also found out the potential customer.

There must be a good infrastructure of the company to get the attention of the public and the office should be at residential area so those customers get the service easily.

Though majority of the customer were satisfied with the existing function but the organization should use some marketing strategies such as discount scheme on amount of transaction made in a month by the regular customer. So it will enable the customer to retain in the organization and to attract new customer.

There should be regular training program like Workshops, Seminars, and Meetings etc. for the sake of development of the organization and also for the development of the employees performance simultaneously.

o As mentioned earlier awareness is a major factor therefore there should be some programmes and functions arranged wherein all the business partners should be called in along with their friends and family. This in turn would give reliance a chance to explain their partners their policies nicely and make them feel special. The people called along with can also be motivated to invest in the business and huge clientele can be formed.
o

Work a lot on the buildup of the already existing brand name-use it as the primary tool.
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CONCLUSION
The study concluded:Reliance money has Brand name & market reputation. Price competitiveness. Very fast processing. Good customer care. Flexible management system. A one stops shop of all financial products. A basket of products. The stock broking industry has Great future. Better investment opportunities. Increased money movement. More no. of investors. More no. of brokers.

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ANNEXURE

Bibliography

Books Research Methodology (C.R.KOTHARI), 2006


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Marketing Management (PHILIP KOTLER), 2005 Websites: www.reliancemoney.com www.nseindia.com www.bseindia.com www.moneycontrol.com www.investopedia.com

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