Professional Documents
Culture Documents
I. Preface.. 2 II. Acknowledgement III. Executive Summary.. 4 Industry Profile... 6 1.1 Indian capital market-an Overview... 7 1.2 Indian Stock Exchanges 9 1.3 Over the counter Exchange of India (OTCEI)..... 12 1.4 Indian Financial Sector 16 1.5 Market Players in Broking Industry. 23 2. 2.1 2.2 3. 3.1 3.2 3.3 3.4 3.5 3.6 3.7 Company Profile 35 Introduction of Reliance enterprise..36 About reliance money.. 41 Research Methodology.. 43 Statement of Problem... 44 Research Objectives 44 Scope of Research... 44 Data Sources. 45 Utility of the Study....... 45 Information about Stock Brokers 46 Limitation of Study 61
Lahore Stock Exchange was formed in 1934 and it had a brief life. It was merged with the Punjab Stock Exchange Limited, which was incorporated in 1936.
Post-independence Scenario
Most of the exchanges suffered almost a total eclipse during depression. Lahore Exchange was closed during partition of the country and later migrated to Delhi and merged with Delhi Stock Exchange.
Bangalore Stock Exchange Limited was registered in 1957 and recognized in 1963. Most of the other exchanges languished till 1957 when they applied to the Central Government for recognition under the Securities Contracts (Regulation) Act, 1956. Only Bombay, Calcutta, Madras, Ahmedabad, Delhi, Hyderabad and Indore, the well-established exchanges, were recognized under the Act. Some of the members of the other Associations were required to be admitted by the recognized stock exchanges on a concessional basis, but acting on the principle of unitary control, all these pseudo stock exchanges were refused recognition by the Government of India and they thereupon ceased to function. Thus, during early sixties there were eight recognized stock exchanges in India (mentioned above). The number virtually remained unchanged, for nearly two decades. During eighties, however, many stock exchanges were established: Cochin Stock Exchange (1980), Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982), and Pune Stock Exchange Limited (1982), Ludhiana Stock Exchange Association Limited (1983), Gauhati Stock Exchange Limited (1984), Kanara Stock Exchange Limited (at Mangalore, 1985), Magadh Stock Exchange Association (at Patna, 1986), Jaipur Stock Exchange Limited (1989), Bhubaneswar Stock Exchange Association Limited (1989), Saurashtra Kutch Stock Exchange Limited (at Rajkot, 1989), Vadodara Stock Exchange Limited (at Baroda, 1990) and recently established exchanges Coimbatore and Meerut. Thus, at present, there are totally twenty-one recognized stock exchanges in India excluding the Over The Counter Exchange of India Limited (OTCEI) and the National Stock Exchange of India Limited (NSEIL).
The Table given below portrays the overall growth pattern of Indian stock markets since independence. It is quite evident from the Table that Indian stock markets have not only grown just in number of exchanges, but also in number of listed companies and in capital of listed companies. The remarkable growth after 1985 can be clearly seen from the Table, and this was due to the favoring government policies towards security market industry.
Source: Various issues of the Stock Exchange Official Directory, Vol.2 (9) (iii), Bombay Stock Exchange, Bombay.
when entering into the contract which shall not be more than 14 days following the date of the contract: and (b) forward transactions "delivery and payment can be extended by further period of 14 days each so that the overall period does not exceed 90 days from the date of the contract". The latter is permitted only in the case of specified shares. The brokers who carry over the outstanding pay carry over charges (cantango or backwardation) which are usually determined by the rates of interest prevailing. A member broker in an Indian stock exchange can act as an agent, buy and sell securities for his clients on a commission basis and also can act as a trader or dealer as a principal, buy and sell securities on his own account and risk, in contrast with the practice prevailing on New York and London Stock Exchanges, where a member can act as a jobber or a broker only. The nature of trading on Indian Stock Exchanges are that of age old conventional style of face-to-face trading with bids and offers being made by open outcry. However, there is a great amount of effort to modernize the Indian stock exchanges in the very recent times.
Listed Securities - The shares and debentures of the companies listed on the OTC can be bought or sold at any OTC counter all over the country and they should not be listed anywhere else
Permitted Securities - Certain shares and debentures listed on other exchanges and units of mutual funds are allowed to be traded
Initiated debentures - Any equity holding at least one lakh debentures of a particular scrip can offer them for trading on the OTC.
OTC has a unique feature of trading compared to other traditional exchanges. That is, certificates of listed securities and initiated debentures are not traded at OTC. The original certificate will be safely with the custodian. But, a counter receipt is generated out at the counter which substitutes the share certificate and is used for all transactions. In the case of permitted securities, the system is similar to a traditional stock exchange. The difference is that the delivery and payment procedure will be completed within 14 days. Compared to the traditional Exchanges, OTC Exchange network has the following advantages: OTCEI has widely dispersed trading mechanism across the country which provides greater liquidity and lesser risk of intermediary charges. Greater transparency and accuracy of prices is obtained due to the screenbased scripless trading. Since the exact price of the transaction is shown on the computer screen, the investor gets to know the exact price at which s/he is trading. Faster settlement and transfer process compared to other exchanges. In the case of an OTC issue (new issue), the allotment procedure is completed in a month and trading commences after a month of the issue closure, whereas
it takes a longer period for the same with respect to other exchanges. Thus, with the superior trading mechanism coupled with information transparency investors are gradually becoming aware of the manifold advantages of the OTCEI.
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Trading at NSE takes place through a fully automated screen-based trading mechanism, which adopts the principle of an order-driven market. Trading members can stay at their offices and execute the trading, since they are linked through a communication network. The prices at which the buyer and seller are willing to transact will appear on the screen. When the prices match the transaction will be completed and a confirmation slip will be printed at the office of the trading member. NSE has several advantages over the traditional trading exchanges. They are as follows:
NSE brings an integrated stock market trading network across the nation. Investors can trade at the same price from anywhere in the country since intermarket operations are streamlined coupled with the countrywide access to the securities.
Delays in communication, late payments and the malpractices prevailing in the traditional trading mechanism can be done away with greater operational efficiency and informational transparency in the stock market operations, with the support of total computerized network.
Unless stock markets provide professionalised service, small investors and foreign investors will not be interested in capital market operations. And capital market being one of the major sources of long-term finance for industrial projects, India cannot afford to damage the capital market path. In this regard NSE gains vital importance in the Indian capital market system. After adjustments for purchasing power parity, Indias economy is the fourth largest in the world in terms of Gross Domestic Product (GDP). An efficient securities market provides the necessary channel for flow of resources from the providers of capital to the users of capital for economic development. The overall growth of the economy and economic activity are also important factors, which determine
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availability of resources. The following table illustrates India's GDP growth between 2004 and 2007.
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Regulatory Developments
AT The following are certain regulatory developments in the Indian financial sector since India's economic reforms.
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trading system. Introduction of these trading systems has been one of the key developments in the Indian capital market.
Trading Cycle
In the early 1990s, trades were accumulated over a trading cycle and at the end of the cycle, trades were netted out and followed by payment of cash and delivery of securities in order to settle the balance. This trading cycle varied from 14 days for specified securities to 30 days for others and settlement took another fortnight. In order to reduce large open positions, the trading cycle was reduced to a week. The stock exchanges, however, continued to have different weekly trading cycles, which enabled shifting of positions from one exchange to another. Rolling settlement on a T+5 basis was introduced in 1996 and as a result, for specified scrips, the trading cycle was reduced to one day. It was made mandatory for all stock exchanges to follow a uniform weekly trading cycle in respect of scrips not under rolling settlement. All scrips were moved to the rolling settlement in December 2001. The settlement period has been reduced progressively from T+5 to T+3 days to the current T+2 day settlement cycle.
Derivatives Trading
To assist market participants in managing risks better than through hedging and arbitrage, the Securities Contracts (Regulation) Act, 1956 (SCRA) was amended in 1995 to lift the ban on options in securities. The SCRA was amended further in December 1999 to expand the definition of securities to include derivatives so that the whole regulatory framework governing trading of securities could apply to trading of derivatives as well.
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In the meantime exchanges developed infrastructure and the information systems required to implement trading discipline in derivative instruments. Derivative trading commenced in June 2000 on the NSE and the BSE. The market presently offers index futures and index options on three indices and stock options and stock futures on individual stocks (presently 187 stocks on the NSE as of June 2007) and futures in interest rate products like notional 91-day T-bills and notional 10-year bonds. Demutualisation (Segregation of ownership from management) Historically, brokers owned, controlled and managed stock exchanges in India. The Government proposed in March 2001 to corporatise the stock exchanges and thereby segregate ownership, management and trading membership. A few stock exchanges have already initiated the demutualisation process. The Government has offered a variety of tax incentives to facilitate corporatisation and demutualisation of stock exchanges. The NSE has adopted a demutualised governance structure where ownership, management and trading are separated to help reduce conflicts of interest. The BSE also recently has completed demutualisation.
Depositories Act
The settlement system on Indian stock exchanges gave rise to settlement risk due to the lapse of time before trades were settled. The historical process of physically moving securities among different parties took time with the risk of delay along the chain. A significant proportion of transactions ended up as bad deliveries due to noncompliance with paperwork. This added to costs, restricted liquidity and made investor grievance redressal time consuming and at times intractable. To obviate these problems, the Depositories Act, 1996 was passed. As of mid-June, 2007, more than 6,670 companies were connected to NSDL and 5,660 to CDSL. All actively traded scrips are 15
now held, traded and settled in uncertificated form. Uncertificated settlement (known in India as Dematerialised Settlement) accounts for over 99% of turnover settled by delivery. This has substantially eliminated bad deliveries and associated settlement problems. To prevent physical certificates from coming into circulation, it has been made mandatory for all new public offerings to be traded in uncertificated form. The admission to a depository for holding securities in uncertificated form has been made a prerequisite for making a public offering, rights issue or an offer for sale.
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Equity Brokerage
The evolution of the Indian capital markets has stimulated rapid consolidation due to increased trading volumes, increased regulation, customer sophistication, better technology and increased back-office requirements. As a result, significant changes have been introduced to strengthen risk management systems. Changes in the regulatory framework and settlement mechanics have resulted in the smaller operating participants losing their market share, leading to a consolidation in the industry. The market share of the top five brokers on the NSE has increased from 12% in Fiscal 2004 to approximately 15% in March 2007. The market share of the top ten brokers on the NSE has grown from
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approximately 17% in Fiscal 2004 to 24% in March 2007, and the share of the top 25 brokers on the NSE has grown from 30% in Fiscal 2004 to 43% in March 2007. These figures indicate a long-term consolidation process in a highly fragmented securities brokerage industry, with numerous smaller participants exiting the market and larger brokers gaining market share. Market consolidation is even more pronounced in the on-line trading category where the top five brokers control almost the entire market. The rapid growth in on-line trading volumes can be attributed to growing sophistication of retail investors, availability of reliable Internet connectivity and sophistication of Internet-based trading products. The following table illustrates the trading volume on the NSE and the percentage traded by the top brokers from 2003.
Internet Trading
At the end of March 2006, 142 members on the Capital Market segment and 127 on the Futures and Options Segments were permitted to allow investors web-based access to the NSEs trading system. The members of the Exchange in turn had registered 1,443,291 clients for web-based access as of March 31, 2006. In the NSE Capital Market segment in Fiscal 2006, approximately Rs. 183 billion, constituting 11.68% of total trading volume, were routed and executed through the Internet. The following table gives the growth of Internet trading.
Mutual Funds
As of March 31, 2007, there were 756 mutual funds in India with total assets under management of Rs. 2,544 billion. From 1963 to 1987, Unit 18
Trust of India was the only mutual fund operating in the country. It was set up in 1963 at the initiative of the government and the RBI. From 1987, several other public sector mutual funds entered this sector. These mutual funds were established by public sector banks, the Life Insurance Corporation of India and the General Insurance Corporation of India. The mutual funds industry was opened up to the private sector in 1993. The industry is regulated by the SEBI (Mutual Fund) Regulation, 1996. The mutual fund industry has also experienced considerable activity over last few years with total assets under management growing from Rs. 1,396 billion as of March 31, 2004 to Rs. 3,263 billion as of March 31, 2007. In recent years, the industry has witnessed consolidation in favour of private sector mutual funds whose assets under management have grown from Rs. 1,049 billion as of March 31, 2004 to Rs. 2,567 billion as of March 31, 2007. Most of the funds that dominate the sector are open-ended funds. The mutual fund sector can broadly be divided based on the nature of the schemes launched by the mutual funds. The fixed income asset class, which comprises income, liquid, gilt and money market schemes, comprises a major share of total funds under management. The other two asset classes are equity and balanced schemes, which have experienced significant growth recently on account of the robust stock market.
Insurance Sector
The insurance market was opened to the private sector in 2001. Since then, various foreign and Indian private sector participants have targeted market potential by providing a range of customized products. Major foreign insurance companies such as New York Life,
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Aviva, Tokio Marine, Allianz, Standard Life, Lombard General, AIG, AMP and Sun Life, among others, have announced joint ventures in both life and non-life insurance areas. As a result of the increased competition, state sector companies have become more aggressive in their product offerings, marketing strategies and distribution channels. According to the Insurance Regulatory Development Authority, the life insurance market has grown by 120% in the period from April 1, 2006 to February 28, 2007. The general insurance market has grown by 23.7% during the same period.
Investment Banking
With the Indian economy maturing, Indian companies are also evaluating different means to raise capital in the equity and debt capital markets. The volume of activity in equity capital markets as well as the transaction advisory market have increased significantly. With the increase in activity levels and entry of foreign investment banks in India, competition is intensifying. However, there is a large number of small and mid-sized companies, which is increasing the market size of investment banking activities.
Transaction Advisory
There has been a significant increase in the merger and acquisition activities by Indian companies in recent years. This continuing increase is evident in the inbound, outbound and domestic segments.
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Industry Outlook
Existing low penetration levels, increasing affordability of credit and rising income levels have led to a growing demand for retail financial products. India has a substantial retail investor base throughout the country that has a large pool of untapped surplus funds. The market confidence of small investors has increased with growing levels of education and financial awareness, and the strengthening of regulatory systems. The financial services Industry is undergoing consolidation. In the future, it is expected that market share will be captured by financial services providers who can offer a complete range of financial products and services. Companies in the broking industry
Dan Technologies, Delhi Offering services such as security consulting services, security implementation services, security engineering services, safety consulting services, access control services and intrusion detection services.
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Providing all kinds of equity share services, mutual funds services, commodity futures services etc. Bharti Fexp Providing equity anaysis services, commodity analsis services, sub broker services, fund manager services etc.
Niki Impex Providing share tips, commodity tips, investment recommendations etc. service for Indian share. Diginet Software Providing all kinds of stock exchange. Rajive & Co Commodity brokers of sugar. Stock Onlinee Providing all kinds of stock broking services. Navnitjoshi Securities Providing all kinds of trading in equity, share investments, mutual funds etc. Apex Recruitment & Management Consultants Offering services of stock market. 1st Financial & Management Services Providing all kinds of stock market services, mutual funds services etc. Securities Trading Corporation India Limited Underwriters of government securities and bonds, treasury bills, PSU bonds, short term investments and call money, issued by public sector undertakings. Hira Stocks Solution Private Limited Providing all types of equity investment advisor, equity shares consultants etc. Aadvance Solutions Providing all kinds of equity services, commodity services, forex services, mutual fund services, Ipo services etc. Navkar Equity Solutions Private Limited Providing share brokers services. Gupta Promoters Involved in offering brokerage services. Sugal & Damani Lottery Agency Private Limited
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Vasanti Share Brokers Limited Providing services of bse stock market broker, nse stock market broker, mcx stock market broker, best indian stock broker, top indian stock market broker etc. B. L. B. Limited Providing all kinds of share broking services. Agrawal Invesment Consultants Engaged in providing services like mutual fund investment services and share trading services. Vigilant Technologies Manufacaturers and exporters of cctv, remote survillance, guard monitoring system, access control system, lpg gas leak detector and burglar alarm etc Sun Securities Providing all kinds of mutual funds, sbi mutual funds, hdfc mutual funds, birla sun life mutual funds, franklin templeton mutual funds, reliance mutual funds, fidelity mutual funds etc. Navia Markets Limited Provides all types of mutual funds service, equity trading service, online nri trading service etc. One Source Financial Services Offering mutual funds services and equity trading services. Xpertz Broking Private Limited Providing all kinds of mutual funds, govt securities, bonds, ipos, share trading etc. Bonanza Portfolio Engaged in providing share trading services. aypee Capital Services Limited Provides trading, research, advisory services for shares. Ace Tech Agencies Providing services of commission agents. SDPL Provides services as investment consultants. Tata Share Registry Limited Providing share registry services. Refco Provides share brokerage services.
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B. N. R. Capital Services Private Limited Engaged in providing services of stock broker services and share broker services. Prudential Capital Investments Providing share brokerage services. Jm Morgan Stanley Fixed Income Securities Private Limited Offering broker services, w t broker services and stock brokers services. T. M. P. International Traders Involved in offering share commodities services and capital market services Agroy Finance & Investment Limited Providing stock broking, investment banking, accounts, audit and taxation services. Rachana Investment & Finance Providing services of share stock brokers and financial consultants. Metal Wood Systems Providing share related services. Refco Commodities India Private Limited Providing services like advisory and broking of commodity fixtures. Hi Gain Securities Providing services as stock brokers. Smc Global Securities Limited Dealers of share broking, mutual funds etc. El & En Education Trust Provides services through investments & small savings. Target Providing professional guidence as technical analyst for buying and selling shares listed on bombay stock exchange and national stock exchange. Investment Point Provides services in investment consultancy. S. P. K. International, Gurgaon International broker of coal, petroleum and steel. S. S. A. Financial Services Providing share related services. Aeonian Investment Company Limited Engaged in providing services of share consultant and investment in share.
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Pelf Finestock Offering services like nse consultancy services, bse consultancy services and commodity consultancy services. Angel Broking Limited, Mumbai Providing services related to shares and stocks. V. S. Consultants, Mumbai Indian stock consultants with advise on investments on Indian bourses Zen Capital Holdings Providing services of finance against shares of bse/nse listed companies. Tachukdi Provides broker services. Commodities Power Providing all kinds of stocks services. Association Of NSE Member Of India Dealing into NSE stock and brokers. Capital Via International Services Providing services for stock exchange consultancy. Srisivan Foods India Private Limited Providing brokerages. Almonds Capital Market Private Limited Offering online share trading services and equity trading services. Legend Securities Limited Provides services as share broker. B. L. B. Limited, New Delhi Providing services related to sale purchase of shares. N. C. C. Telecom Private Limited Manufacturers of building automation system , video apartment and access system, building intercom and security system. Mata Securities India Pvt. Ltd. Indian debt broking house Vidkris Finserve Providing services for nse, bse, ncdex, mcx and consultancy in mutual funds. J. K. Consultancy Providing security consultancy services.
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Refco-Sify Securities India Private Limited Providing stock broking services. Abhipra Capital Ltd. Provide services like online share trading, depository services, money changing services, legal consultancy, Brokering services with NSE, BSE, DSE etc. Market Creators Limited Providing stock broking services. Depe Global Shipping Agencies Private Limited Providing all types of services related to chartering brokers. Amit Nalin Securities Private Limited Provides services in stock broking. Kanha Fincap Private Limited Providing services related to shares and stocks brokers. Vruddhi Capitals & Commodities Providing services like online share trading and commodities trading. C. R. V. Consultants Providing stock market consultancy services. Pushp Consulting Providing advisory services for trading & investment of share and govt. securities. Dalmia Securities Ltd. Provide Services related to Stock - Brokers , Depository participant, Dematerialisation , NRI Investment in India, Shares & debentures & Bonds Aditya Consultant, Pune Offering stock market, commodity market, portfolio consultants, securities consultants etc. S. N. Dhawan & Company Providing stock and share brockers services. Geojit Securities Limited, Kochi Providing all types of stock and share broking services. Shekhar Resorts Providing services of security solutions for a five star hotel. Financial Consultants
Providing all kinds of share trading services, stock broking services etc. Investment Intermediates Limited Investment Intermediates Limited is a corporate member of mumbai stock exchange and
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national stock exchange. Rajpoot Securities Co. Providing security solutions. Sino Credits & Leasing Limited Provides stock and share brokers services. Commodity Consultants International, Mumbai Providing consultancy and broker services for steel, stainless steel, rice, sugar, spices and other commodities. Contemporary Targett Limited Provides brokers for tea and tea related products. Interem (india) Private Limited Providing Services of broker.
G. K. Shares And Stocks Providing services as a intermediary. IIT Investrust Limited Provides services of stock broking house Jpr Agencies Private Limited Providing services of broker services.
Motilal Oswal Commodities Brokers Private Limited Providing stock and commodity brokers services. Bijoy Kumar Gupta Offering consulting services such as brokers, comission agent and intermediary service. Bhartiya Gurukul Private Limited Providing consultancy services for stock marketing services and stock broking services. J.Thomas & Company Private Limited Provides brokers for tea. Force Tech Security India Private Limited Sathi Share Provide security consultancy services. Engaged in providing stock trading services. Arthi Consultants Private Limited Offering services such as share registrars services and transfer agents services. SR Khandelwal & Co. We offers share broker. Vimal Consultant Providing shares brokerage services. Aan Consultants
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Aplomb Corporation Providing security services. Shares & Commodities Providing services of brokers of shares and commodities in NSE, BSE, MCX, NCDEX. Equity Analysis, Inc. Providing all kinds of stock investment services, stock analysis services, portfolio service services, online help services etc. Source One Offering consultancy for equities trading services. Bazaar Buzz Trading in stock market.
FFE Minerals India Ltd., Chennai Offers broker service and commissioning service. Doon Stock Brokers Private Limited Providing services related to shares, stock brokers and depository services. Sai Nath Investments Providing services related to shares and stocks brokers. Provides stock broking services, securities dealing, advisory services etc. S. S. M. Comex Deals in multi commodity exchange.
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Security Concepts Provides security consultacy services. Shri Avs Holdings Providing all kinds of online share trading services. Lion Financial Services Providing all kinds of stock broking services. Commodities Broking Company Providing consultancy services for share broking and share commodities. Globe Detective Agency Private Limited, Delhi Provides security consultancy services.
Lahiri Online Providing services related to technical analysis on indian share market based on proven and most reliable softwares of international acclaim. Rajrani acts as stock lot broker Infokush Dealing in software relating stockmarket Orphan Group Of Industries Providing all kinds of shares, mutual fund etc. Netgains Technologies Providing services like stocks online for stock brokers and depository participants.
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J. V. Capital Services Providing stockbrokers services, specialising in domestic and international arbitrage and catering to nri investments. Soham Sharma Providing consultancy services for share investment, loans and speculation services. Also provide services in the field of family, politics, property, investments, career, vaastu shastra, property investments, marriage life, traveling and speculation. Gupta Commodities Private Limited Providing commodities broking service, share broking service, stocks broking service etc. G. C. M. Securities Limited Providing services of online share trading with positive recomendation. ICICIGold.com Dealing into share and gold.
Coimbatore Stock Exchange Limited Provide stock exchange benefits. CCMS (P) Ltd Provide services of stock brokers and demat services. Krishna Share Astrology Consultant Provide brokrage services for shares. Anagram Stockbroking Limited, Pune Involved in offering share broking consultancy services, consultancy services and share negotiators consultancy services. Joy Shipping Servicespvt Limited Offer sevices like broker services.
Marshal Security Services Provides security services. Reliance Money Limited Providing share consultancy services. B. N. Rathi Securities Limited Provide services such as share brokers.
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I. C. L. Consultancy Services Private Limited Offering mutual fund investment services. Karthick Provide services such as shares. Cammron Security Systems Providing electronic security consultancy services. Aarnik Securities Offering share brokers and equity mutual funds brokers. Semri Capitals, Delhi Providing share consultancy services. Apollo Sindhoori Capital Investments Limited Providing online share trading services. Sourabh Gilts & Securities Limited Providing services like psu bonds, rbi bonds, capital gain bonds, public sector undertaking bonds, mutual funds and government securities. Shrisharepandit Consultants Private Limited Providing services related to share market. Pearl Shipping Agencies Provide Agency Services & Chartering Brokers. Adinath Capital Services Limited Provides share broker services. Kingdom Express Its an international trade agent, on commission basis. Our services are dealing in rice, refuse sacks, mosquito coil, construction machinery, furniture, marine products, iron ore, metal scraps. T. S. K. & Company Offering consulting services such as stock investing services. RBK Share Broking Limited Providing services of stock broking. Alankit Assignments Limited One of the national stock exchange member. Kakani Securities Private Limited Providing all types of securities services. A K Capital Services Limited
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Stock Brokers and member NSE & DSE. Growmore Securities Providing stock broking services. Global Detective Company Providing security consultant services. R.K.Global Shares & Securities Ltd. Offers share purchase and sale related services. Lyman Container Line Engaged in providing services like broker. Viratech Enterprises Pvt. Ltd. Provides services related to stock quotes for the Bombay, National & Calcutta Stock Exchanges for use in all popular Technical Analysis programmes
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Provide services such as share brokers. Integrated Stock Broking Services Providing share broking services through membership in national stock exchange and share depository service through membership in national securities depositories limited. Kalia Pankaj & Associates Providing stock brokers services.
CH: 2 Company
Profile
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Reliance Enterprise
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 100,000 crore (US$ 22 billion), net assets in excess of Rs 31,500 crore ( US$ 7 billion), and net worth to the tune of Rs 27,500 crore (US$ 6 billion)
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Across different companies, the group has a customer base of over 50 million, the largest in India, and a shareholder base of over 8 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 4,500 towns and 300,000 villages in India, and 5 continents across the world. The interests of the Group range from communications (Reliance Communications) and financial services (Reliance Capital Ltd), to generation, transmission and distribution of power (Reliance Energy), infrastructure and entertainment.
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Our Founder
Think big, think fast, think ahead. Ideas are no ones monopoly
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Dhirubhai H. Ambani
We live in a world where the young are reaching higher, dreaming bigger and demanding more; a world that is challenging the limits of hope and possibility. Nowhere is this more strikingly visible than in India a country that wakes up every morning a little younger in age, but infinitely more ambitious in spirit.
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Anil D. Ambani
Our Mission
. is to attract, nurture & retain a team of competitive, growth oriented talent who : consistently deliver share-holder returns of 20%+ year-onyear Are responsive to Employee Needs & achieving an employee satisfaction index of 90%+ and are committed to making Reliance Capital among the top 3 Best Employers to work for in India
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Network of kiosks have been set up across the country to facilitate the above trading activities Reliance Money provides entire commodity related services such as broking distribution and warehouse receipt financing Reliance Money is also into the distribution of financial products and Gold Coins Within two years of operations Reliance Money has spread across 80 locations with more than one thousand employees
CH: 3 Research
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Methodology
I.
STATEMENT OF PROBLEM
The criteria and preferences considered the different stock brokers.
Research Objectives
There must an objective behind any research. Without objective there is no meaning of research. : The main objective of this research is to find the scope of the Demat & Trading Accounts of Reliance Money Limited. It will also measure the awareness of online trading in the market of Ahmedabad city. It aims at finding the consumers preference or criteria to select the share broking house for their investment. To know that how the variables such as company performances, services, different types of charges, the company profile, etc. affect the consumers choice of the Demat Account or trading account holdings
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The company will be able to know the various preferences, considerations, requirements as well as the offerings of various competitors in the market It will help in framing strategy, which is competitive enough to cover all the essential offerings of the competitors. 43
The company will be able to know the key factors which are responsible for the success of major market leaders in the broking industry.
Cost-effective: Pay a flat fee of just Rs. 500/- valid for 2 months or specified
transactional value. Convenience: Go online, through your broker/agent, Call & Trade or Kiosk Security: Dynamic password - keeps the account extra secure Widest product range: Equity, Commodities, Derivatives, Offshore, Mutual Funds, IPOs, Insurance Other value-adds: Live news from Dow Jones, research, expert views, etc available free and in real time
Account opening fee & other charges: The initial account opening charges are Rs. 750/- which are lifetime account opening charges. These charges have been waived off for corporate clients. AMC charge of Rs. 50/- is applicable which is the lowest in the industry. For additional Rs. 500/- a client can trade in volumes upto Rs. 5 lakh with time validity of maximum 1 year. There is a Rs. 500/- waiver for general clients (individuals). Also certain prepaid coupon systems are provided which provide the customer different trading volume limits along with different time validity limits as suited to different clients as per their needs. These coupon systems have been mentioned below:-
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ONLINE BUY 1 paisa SELL 1 paisa Rs. 15 (D.P. charge)* BUY 1 paisa
OFFLINE SELL 1 paisa Rs. 15 (D.P. charge)# Rs. 15 (assistance Rs. 15 (assistance charge)** charge)*
he Rs. 15/- D.P. charges as shown above are flat per transaction per scrip per day irrespective of the volume of shares traded. The Rs. 15/- assistance charges are also flat irrespective of the volume of shares traded out of which Rs. 10/- is the commission the franchisee receives for the services offered by him and Rs. 5/- is what Reliance Money gets.
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F&O: 10 paise/100rs.1 time charge o B.T.S.T. facility is allowed o Banking: H.D.F.C.,U.T.I., Citibank o D.P.-C.D.S.L. o Trading in Z group shares not allowed. o Franchisee is treated as remissor upto the time of getting sub-brokership registration o Delivery Instruction Slip charges: Rs.10/slip o Brokerage % sharing with franchisee is 50:50 on brokerage uptoRs.100000 and than 65:35 or even higher based on brokerage earned by franchisee.
Trading A/c opening charges Rs.100 Demat A/c opening charges A.M.C.:Rs.300 Stamp duty: Rs.100 Rs.500 (+service tax) Total
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based trading.
Auto pay-in: Rs.100 Inter Depository share transfer charges: Rs.15 for value of securities up to Rs.100000 0.2% increase on securities having value higher than Rs.100000 Online back-office available and online trading available for which Connectivity: Normally -VSAT For higher volume Lease line For lower volume- Internet Broadband S.m.s. facility and information available Trade Exposure: 5-10 times for Intraday and 3 times for delivery
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o Whenever the share prices fluctuate in the market creating a favorable situation for buyers for buying or selling a particular script, the clients are immediately informed about the same in order to take advantage of the favourable situation
o There is no organizational hierarchy in the firm and all the employees at the branch are relationship managers who have to directly report to the vice president of the co. The purpose behind this is to make direct interface between clients and employees possible
o Special NBFC A/c which provide funding on the trade investment made upto75% on the investments made by the client
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Share khan
Share khan is a very actively expanding out retail distribution network to reach out investors nationwide. Why go for share khan? Online terminal and internet trading Speed and flexibility Technology and marketing Research and equity sales support Marketing and branding Technology support and training Infrastructure: Minimum 500 sq.ft of office space Connectivity: C.T.C.L & VSAT Prosper infrastructure: La test P.C., U.P.S. Least 2 certified and trained dealer Least 5 sales excutives Operations : Billing- Centralized billing system where the end client will receive contract of share khan
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Certification: for D.P., Cash and F&O and commodity operation at your location you will have to produce the requisite NCFM certification as per the guideline of the regulator
Brokerage: o Initial-50:50 Online o At a gross brokerage of Rs.300000 per month-45:55 o At a gross brokerage of Rs.500000 per month-40:60 o Commodity-50:50 (Cash and Derivative ) Offline and
Trade margin: o Cash Market:Rs.250000 o Derivative Market:Rs.100000 o Power Broker:Rs.50000 o Commodities Market:Rs.100000
Anagram
NSE and F&O same id is provided and can be operated through one computer Separate Id and computer required for BSE Connectivity: Broad band, Lease line 10,000*2 DD pay at Bombay on name of SEBI (5year*2000=sub-broker fees) NSE and F&O (NCFM certificate required) For Online network charges are Rs.10, 000 to be paid in two installments. Documents required to start franchisee: o Pan card o Id and residential proof o Office address proof
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o Bank reference letter o CA reference letter or net worth certificate with CAs seal Brokerage:
o 0.02 to 0.05 brokerage on trading o 0.20 to 0.50 brokerage on delivery Registration done from exchange and the registration no. received from it. Personal attention in terms of training provided. Back office provided by main firm and available on net. No security deposit in the beginning if the firm is new, later main branch can charge as per the revenue generated by the firm.
Brokerage(Cash Segment) When the market price of the scrip is above Rs.10
Delivery Trades 0.5% of transaction value or Rs.15 per order whichever is higher Brokerage@Rs.0.05 per share or Rs.15 per order
Square off Trades 0.15% of transaction value or Rs15 per order whichever is higher Brokerage@Rs.0.05 per share or Rs.15 per order
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A/c opening charge for N.R.I. is Rs.1200 and minimum brokerage per trade is Rs.100 Share demat charges Rs.3 per certificate D.P.:NSDL
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Comparative Chart
PRODUCTS & SERVICES OFFERED BY DIFFERENT BROKERS
Product s Offered Equity & Derivative s IPOs & MFs Commodit y Credit Cards & Gold Coins Loans LI & GI PMS & other benefits
Equity Houses
India Infoline Religare Reliance Money Angel Broking ICICI Direct Kotak Secu. HDFC Secu. Anagram Sharekhan
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Indiabulls
Yes
Yes
Yes
No
Yes
Yes
Yes
Interpretation:
All the broking houses offer almost all types of main products and services. They are providing Portfolio Management Services and other value-added benefits along with their basic offerings so that to cater more and more customers. Other than banks like ICICI, HDFC etc., Reliance Money is the only broker which provides credit cards and gold coins to the customers. It is also a distribution house where you can find products or services of various companies. Its concept is simple, All under one roof. Now, it is going to offer commodities also as one of its products as there is enough potential in the same. In todays scenario, each and every major broking house is trying to include almost all the products in its umbrella so that their customers have not to go at different places for their different financial needs.
Angel Broking
300
Icici, Hdfc, Axis Icici, Hdfc, Bob, Axis, Abn, Sbi Icici, Hdfc, Axis & Idbi
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05 04 04 05-10 10 03
75 40 40 50 50 30
Interpretation
The charges for account opening and AMC are different at different broking houses but those who are keeping these very low or nil, are collecting the same in form of brokerage. Except reliance, all are charging brokerage on volume, which varies from 03 to 10 paisa (intra-day) and 30 to 70 paisa (delivery). But, the brokerage structure is flexible at most of the places. Reliance money is charging only 01 paisa per trade (online), regardless of volume which is very beneficial for big clients. It has introduced Voucher system for brokerage on account of its aggressive launching. ICICI Direct is very costly in terms of brokerage yet it is at no. 1 position among online brokers. The reason behind this is its dedicated customer service. In todays scenario, all the broking houses are trying to associate with major banks for the requirement of demat account. This benefits to both, the banks as well as the brokers. The banks are getting new products to offer and the brokers are getting huge customer base of banks. The popular banks in this category are ICICI, HDFC, Axis, Sbi etc. The broking houses like ICICI Direct, Kotak Secu. and HDFC Secu. are in association with single bank only i.e. ICICI Bank, Kotak Bank and HDFC Bank respectively, because of same group.
Equity Houses
Yes Yes No
Angel Broking ICICI Direct Kotak Secu. HDFC Secu. Anagram Sharekhan Indiabulls
Interpretation
Any benefits or discounts in case of high volume traders
In todays scenario, it is very necessary to provide additional benefits or special discounts to high volume traders or HNIs because it is very important to retain the same as they are the source of big revenues.
Limitations
As we all know, security market is highly volatile. We may predict about it more accurate but due to uncertain driving forces the predictions may not work. The market risks and uncertainties are always there. Long term future of any market has impact of govt. policies and decisions. Indian economy is highly dependent on monsoon, so despite of all the precautions, projected growth rate cant be maintained.
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The things I would like to comment on especially are the very low advertising and marketing initiatives by Reliance Money Limited.
The some customers who are current working with Reliance Money Limited now and then complain about the services provided by the branch.
The things such as the company not give you credit for purchasing a share therefore some of the customer not happy with this services.
The other thing that if and only if you deposit some amount then and then only you will be allowed to trade. So the customers who play very high jacks on intraday basis sometimes would not recommend this.
And the thing that it is compulsory original pan card copy to open a Demat Account and the Trading account with Reliance Money Limited. Without you can not open any one of them.
CONCLUSION
The research conducted by me is summarized as under: From the research, it could be concluded that Reliance Money Limited in all ways as compared with the other stock broking houses has a good scope in the Ahmedabad city. But since it has just finished 1 years of inception in Ahmedabad, it has gained much popularity in comparison of Angel, India bulls, Indiainfoline, Religare etc.
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Reliance Money Limited in always is good, just that it needs to provide more and better services and fast services to the customers. In Ahmedabad city the name Reliance Money Limited needs to be emphasized on, while marketing & selling the product. The market is 100% fully aware that what Reliance Money Limited. It could come up with products which cater to all segments of the society after a little cost cutting, than fixing up a standard service for all its customers, whose needs vary diversely.
BIBLIOGRAPHY
Business research Method cooper & schindler Tata McGraw Hill Reliance Money broachers and registration kit Financial Management P. Chandra (2001) Tata McGraw Hill
Websites:
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