RESEARCH PROPOSAL

ON FINANCIAL
SERVICES INDUSTRY

SUBMITTED TO:
SUBMITTED BY:
PROF. MONICA BHARDWAJ
KARAN SETIA
LEENA SHARMA
JAYA MANASA PEDDINTI
SHIVANK GOEL
RAMAN SINGH RANA
(GROUP-3, SECTION-B)

RESEARCH OBJECTIVES
The main objective for conducting this research is as follows:
Managing the online reputation of the company, brands and
products online by bringing in qualified business leads through
online networking and utilizing data-driven insights to develop
a close, personalized user-experience that maximizes the
potential for profitable outcomes

INTRODUCTION
India has a diversified financial sector, which is expanding
rapidly. The sector comprises commercial banks, insurance
companies, non-banking financial companies, cooperatives,
pension funds, mutual funds and other smaller financial
entities. The financial sector in India is predominantly a banking
sector with commercial banks accounting for more than 60 per
cent of the total assets held by the financial system. At present,
India is one of the world's most vibrant capital markets. The
financial sector has been an important contributor in the GDP
(GROSS DOMESTIC PRODUCT). The size of banking assets in
India reached US$ 1.8 trillion in FY14. The Association of Mutual
Funds in India (AMFI) data shows that assets of the mutual fund
industry have hit an all-time high of about Rs.12 trillion. Equity
funds had inflows of Rs.5, 217 crores, taking total inflows on a
year-to-date basis to Rs.61, 089 crores.
India is today one of the most vibrant global economies, on the
back of robust banking and insurance sectors. The country is
projected to become the fifth largest banking sector globally by
2020, as per a joint report by KPMG-CII. The report also expects
bank credit to grow at a compound annual growth rate (CAGR)
of 17 per cent in the medium term leading to better credit
penetration. Life Insurance Council, the industry body of life
insurers in the country also projects a CAGR of 1215 per cent
over the next few years for the financial services segment .

INDUSTRY OVERVIEW
The financial services sector consists of the capital markets,
insurance sector and nonbanking financial companies (NBFCs).
The asset management industry in India is among the fastest
growing in the world. Total asset under management (AUM) of
the mutual fund industry clocked a compound annual growth
rate (CAGR) of 15.9 per cent over FY07-14 to reach US$ 150
billion. Corporate investors accounted for around 49 per cent of
total AUM in India, while High Net Worth Individuals (HNWI) and
retail investors account for 27 per cent and 21 per cent,
respectively.

Types of financial Services:

Capital Market: It may be defined as a market dealing in
medium and long-term funds. It is an institutional arrangement
for borrowing medium and long-term funds and which provides
facilities for marketing and trading of securities. It constitutes
all long-term borrowings from banks and financial institutions,
borrowings from foreign markets and raising of capital by issue
various securities such as shares debentures, bonds, etc.
Insurance: Insurance can be defined as a legal contract
between two parties whereby one party called insurer
undertakes to pay a fixed amount of money on the happening
of a particular event, which may be certain or uncertain. The
other party called insured pays in exchange a fixed sum known
as premium.
NBFCs: A Non-Banking Financial Company (NBFC) is a
company registered under the Companies Act, 1956 engaged in
the business of loans and advances, acquisition of
shares/stocks/bonds/debentures/securities
issued
by

Government or local authority or other marketable securities of

a like nature, leasing, hire-purchase, insurance business, chit
business but does not include any institution whose principal
business is that of agriculture activity, industrial activity,
purchase or sale of any goods (other than securities) or
providing any services and sale/purchase/construction of
immovable property.
Indian Stock market: The market where securities are traded
known as Securities market. It consists of two different
segments namely primary and secondary market. The primary
market deals with new or fresh issue of securities and is,
therefore, also known as new issue market; whereas the
secondary market provides a place for purchase and sale of
existing securities and is often termed as stock market or stock
exchange.
Stock exchange is the term commonly used for a secondary
market, which provide a place where different types of existing
securities such as shares, debentures and bonds, government
securities can be bought and sold on a regular basis. A stock
exchange is generally organized as an association, a society or
a company with a limited number of members. It is open only
to these members who act as brokers for the buyers and
sellers.
The Securities Contract (Regulation) Act has defined stock
exchange as an association, organization or body of
individuals, whether incorporated or not, established for the
purpose of assisting, regulating and controlling business of
buying, selling and dealing in securities.
Brokerage Firms: The basic function of a brokerage firm is to
execute buy and sell orders for clients. Traditionally these firms
have offered the investigation of the quality and the
possibilities of investing in a variety of investment products. It
is still accustomed for brokerage firms to offer information
about possible investments free of charge. This activity of
bringing free of charge stock investment reports is one of the
main tools that are utilized by brokerage houses to compete
against other firms and to investors it continues to be an
important service.

Current Scenario of Broking: Equity market

Steadily rising turnover in financial markets has led to rapid
expansion of the brokerage segment. The annual turnover
value in NSE has witnessed a CAGR of 23.0 per cent between
FY96 and FY14 to reach USD 466 billion, standing at USD 252
billion for the period (March-July) 2014. The number of listed
companies on NSE and BSE increased to 7,024 in FY14 and
8,634 in January 2015 from 6,445 companies during FY10. The
number of registered sub brokers was 70,178 in FY13 and
55,542 as of December 2013. The brokerage market has
become more competitive with the entry of new players and
increasing efforts of existing players to gain market share.

COMPANY OVERVIEW
Bajaj Capital Ltd was incorporated in the year 1964 in New
Delhi, India. It is Indias premier financial services provider,
which has been providing investment services with about 50
years of experience in helping people protect and grow their
wealth. Bajaj Capital Ltd provides a wide variety of services,
including personalized investment services which uses 360degree financial assessment tool. It also provides its customers
an incredible range of financial products, such as mutual funds,
fixed deposits, bonds, insurance policies, stock investment
options, and options for buying and selling of real estate
properties.
Bajaj Capital provides services to its customers with 24X7
online supports and has registered its presence in over 120
offices in 70 cities across India.
A venture of Bajaj capital- Just Trade Securities ltd
(Justtrade.in):
Justtrade.in, the recently launched Online Investment &
Financial Services Company of Bajaj Capital, is an extension of

the groups highly valued expertise as the most preferred

financial advisory firm in India. The service (www.justtrade.in)
went LIVE on 03rd January 2008 and is aimed at Wealth
Creation for the working professionals, business owners,
experienced investors
and beginners.
Objectives of Just Trade Securities:
To provide a seamless experience to the Indian investors
who can now invest online and in comfort of their privacy.
To give clients a 'new age' holistic service platform that
will enable investments into a wide range of products like
Equity, MF or IPOs and services through the online route
with a single Log in id.
To engage and educate the investor and offer value added
services with flexible pricing packages that include
variable brokerage and fixed fee based plans to give more
value for money spent by the Investor.
The Services provided by Just Trade Securities:
There are no speed limits for creating wealth. The hi-tech
and highly reliable online connectivity through VSAT and
Lease Lines ensures that the trading orders are executed
at lightning speed.
For any kind of investment related queries, the client will
have access to his relationship manager. The Relationship
Manager will facilitate informed decision making on the
part of the investor (with respect to his investments and
overall management of his financial matters) by sharing
his Plan, Product and Research Expertise with the client.
Nature of Just Trade Securities Ltd (Justtrade.in):
The company is providing investment services to the person
who invest in equity market.Justtrade.in is a NSE/BSE registered
Stock Broker that provides Online Share Trading aimed at
Wealth Creation for working professionals, business owners,

experienced investors and beginners, with its presence all over

India. The company major function area is finance and is
followed by marketing, information technology, and Human
resource.

LITERARTURE REVIEW
Marisa Maio Mackay (2001) examined whether differences exist
between service and product markets, which warrant different
marketing practices by applying ten existing consumer based
measures of brand equity to a financial services market. The
results found that most measures were convergent and
correlated highly with market share in the predicted direction,
where market share was used as an indicator of brand equity.
Brand recall and familiarity, however, were found to be the best
estimators of brand equity in the financial services market.

RESEARCH METHODOLOGY
The study has adopted the exploratory research design in order
to understand the factors that could help Bajaj Capital Ltd
manage its online reputation, bring in qualified business leads
through online networking and to utilize data-driven insights to
develop a close, personalized user-experience that increases
the potential for profitable outcomes.

DATA COLLECTION
The data has been collected from secondary sources which are
reliable sources to conduct the research.

ANALYSIS,
INTERPRETATIONS
RECOMMENDATIONS

AND

SWOT Analysis of Just Trade Securities ltd:

Strengths
Multiple and customized plan for Investors.
Known for transparent functioning and no hidden charges.
ODIN software for online share trading.

 Maintaining long term relationship with their customer.

Services offered include Online trading platform, research
calls, call and trade, real time confirmation.
Weakness

Less branches near by the rural areas.

Brokerage rate was high as compared to competitors.
Deals in only equity segment.
Account opening page was not user-friendly.

Opportunity
A renowned name Bajaj capital is the best opportunity to
increase market share.
No issue of compliance as company was following all the
rules and regulation of SEBI.
Threats
Stringent Economic measures by Government and RBI.
As brokerage was little high customer may shift to other
broker.
Only equity segment is dealt in.

CONCLUSION
This proposal is just a framework of the actual research and not
the actual research. If the framework is found suitable enough,
the research will be conducted accordingly.

REFERENCES
www.ibef.org
Mackey Maio Marisa (2001), "Assessing the performance
of brand loyalty measures", Journal of Services Marketing,
Vol. 15 Iss: 7, pp.529 - 546