Khan Bhai Report

CONTENTS
NO.
1.
PARTICULAR
OVER ALL INTRODUCTION EXECUTIVE SUMMARY INDUSTRY INFORMATION COMPANY INFORMATION REGULATORUY ENVIRONMENT INFORMATION FUNCTIONAL AREA INFORMATION OPERATIOM DEPARTMENT STUDY MARKETING DEPARTMENT STUDY FINANCE DEPARTMENT STUDY HUMAN RESOURCE DEPARTMENT STUDY LIST OF CHARTS LIST OF TABLES BIBLIOGRAPHY WEB SITES
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2 3 4 21 80 85 86 91 98 100 112 113 114 115
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3. 4. 5. 6.
YUSUFJAY AYUB KHAN H.
OVER ALL INTRODUCTION
EXECUTIVE SUMMARY INDUSTRY INFORMATION COMPANY INFORMATION REGULATORY ENVIRONMENT INFORMATION
EXECUTIVE SUMMARY
Being a part of MBA curriculum, this summer training has given me an ideal opportunity to have a practical exposure with the different functions of the Industrial or Corporate sector. This facilitates the understanding and related learning to me, which helps me in understanding the subject better. YUSUFJAY AYUB KHAN H. 2
In this era computer awareness and use of internet is increasing, so people tend to save the time by using automatic tools for most of their routine and non routine work. Online share trading system has entirely changed the scenario of capital market. Now people who use online share trading facility need not have to call his broker or to sit in terminal to trade in stock market. They can trade in stock market with the use of computer & internet. This is completely paper less procedure. Investor can save a lot of time by using this facility. Reliance Money provides online share trading, mutual fund, insurance & IPO facility to its clients. But as in all the industries online share trading market is also crowded with many competitors like ICICIDirect.com, HDFC Securities, Share khan, India bulls, 5paise.com, Angel Broking and Kotak Securities etc. But still many unique facilities are provided by Reliance Money. Thus, the project highlights all the unique aspects of Reliance Money. Moreover it provides the functioning way of Reliance Money through its organizational study. Moreover in this technocracy World, there are still traditional trading investors who totally differentiate themselves from the new trading investors. This project does not only impart the necessary theoretical knowledge about the field but also provides an opportunity to have an experience in the corporate world.
INDUSTRY INFORMATION
Stock exchanges are like market places where stockbrokers buy and sell securities of individuals or institutions. Stock prices fluctuate from minute to minute, with the price of a stock at any given time being determined by the demand for it. Stock markets have gone through tremendous improvements to match the expectations of the growing industry. The introduction of norms for greater transparency in operations and the international trading and investments exposure as well as support of professional analysis have brought about tremendous improvements in this sector.
Security Exchange Board of India (SEBI) oversees the operations of banks and financial institutions as watchdog. It is the regulatory body in charge of the countrys capital markets. In every way possible, professionalism has come into the stock market business. The Securities have already redefined themselves and have introduced the compilation of a database to identify avenues of investments in industries. Some of Indian finance service companies have already made some progress in setting up equity research for identifying growth scripts for portfolio investment and have taken up stock broking earnestly.
INDIAN CAPITAL MARKET

The function of the financial market is to facilitate the transfer of funds from surplus sectors (lenders) to deficit sectors (borrowers). Normally, household have excess of funds or savings, which they lend to borrowers in the corporate and public sectors whose requirement of funds far exceeds their savings. A financial market consists of investors or buyers, sellers, dealers and does not refer to a physical location. It means that it is not requirement of existence of any physical place in the market. We can say any condition that it is market when any purchaser and seller come into existence. And in case of capital market we can say any condition a market when there is an existence of investors and borrowers of the fund. Formal trading rules and communication networks for originating and trading financial securities link the participants in the market.
INDIAN FINANCIAL SYSTEM

FINANCIAL SYSTEM
CAPITAL MARKET
MONEY MARKET

INTER PRIMARY EQUITY PRIVATE MARKET MARKET PLACEMENT REGIONAL SECONDARY DEBT DERIVATIVE STOCK BSE OTCEI ISE STOCK INDEX MARKET MARKET MARKET EXCHANGES
CALL MONEY MARKET COMMERCIAL BILLS TREASURY BILLS TERM MONEY
CERTIFICATES OF DEPOSITS PUBLIC ISSUE NSE F&O COMMERCIAL PAPERS
DOMESTC MARKET
PRIMARY SEGMENT
SECONDARY SEGMENT
Chart 5: Indian Financial System
Despite rapid expansion of the organized money market through a large network of banking institutions that have extended their reach even to the rural areas, there is still an active unorganized market. It consists of indigenous bankers and money lenders. In the unorganized market, there is no clear demarcation between short-term and longterm finance and even between the purposes of finance. The unorganized sector continues to provide finance for trade as well as personal consumption. The inabilities
of poor to meet them take recourse to the institutions that still remain outside the regulatory framework of banking. But this market is shrinking. The capital market provides the framework in which savings and investment take place. On the one hand it enables companies to raise resources from the investors and on the other; it facilitates households to invest their savings in industrial or commercial activities. Those saving instrument that can be bought or sold freely are called securities. These include a range of products debt and equity that can be traded. The market where such trades place is called the securities market where such trades take place is called the securities market and comprises the various exchanges, intermediaries and its regulatory institutions. The capital market consists of primary and secondary segments. The primary market deals with the issue of new instruments by the corporate sector such as equity shares, preference shares and debentures. The public sector consisting of Central and State Government, various public sector industrial units, statutory and other authorities such as state electricity boards and port trusts also issue bonds. The primary market in which public issue of securities is made through a prospectus is a retail market and there is no physical location. Direct mailing, advertisements and brokers reach the investors. Screen based trading eliminates the need for the trading floor. The secondary market or stock exchange where existing securities are traded is an auction arena. It may have a physical location like a stock, exchange or a trading floor. Since 1995 the trading in securities is screen based training eliminates need for a trading floor. And since the last year Internet-based trading has also made an appearance in India. The secondary market consists of 23 stock exchanges including the National Stock Exchange and the over the counter Exchange of India and Inter Connected Stock Exchange of India Ltd. The secondary market provides a trading place for the securities already issued to be bought and sold. It all provides liquidity to the initial buyers in the primary market to re-offer the securities to any interested buyer at any price, if mutually accepted. An active secondary market and capital formation because YUSUFJAY AYUB KHAN H. 7
investors in the primary market are assured of a continuous market and they can liquidate their investments in the stock exchange. There are several major players in the primary market. These include the merchant bankers, mutual funds, and financial institutions, foreign institutional investors (FIIs) and individual investors. R & T (Registrar and Transfer) agents, custodians and Depositories are capital market intermediaries that provide important infrastructure services for both primary and secondary markets. It is important to ensure a smooth working of this market, as it is the arena where the players in the economic growth of a country interact. Various laws have been passed from time to time to meet this objective. The financial market is India was highly segmented until the initiation of reforms in 1992-93 on account of a variety of regulations and administered prices including barriers to entry. The reform process was initiated with the establishment of Securities and Exchange Board of India (SEBI).
CAPITAL MARKET PROCESS
2. PRIVATE PLACEMEN T
1. IPO
3. RIGHT ISSUE
5. INTERNET TRADING
4. STOCK TRADING
Chart 6: Capital Market Process
Initial Public Offering (IPO):

New and old companies can offer their shares to the investors in the primary market. This kind of tapping the savings for the first time is called IPO (Initial Public Offer) and raise the fund from the market for the second time by any existing company is known as FPO (Forward Public Offer). SEBI guidelines regulate various procedures involved in making a public issue but price of shares, size of the issue, timing of the YUSUFJAY AYUB KHAN H. 9
issue, listing of the issue is decided by the issuer. Issuers have to disclose all relevant facts and information in the prospectus. Prospectus also has to disclose risk factors and management perception about those risks. Large initial public offers are made through book building route. Under this route, market determines the price of issue by offering bids. Companies Act was necessarily amended directing that all public issues above Rs. 10 crores have to be necessarily in Demat form. Investor can receive shares in a public issue by writing DP-Id and Client-Id in the share application form.
Private Placement:
Methods of raising funds directly from investors without issue of prospectus to the public are known as private placement. SEBI has prescribed the eligibility criteria for companies and instruments as well as procedures for private placement. Privately placed securities can also be listed if such placements fulfill all listing criteria.
Preferential Offer or Rights Issue:

Companies can expand their capital by offering the new shares to their existing shareholders. Such offers for sale can be made to the existing shareholders by giving them a preferential treatment in allocation or the offer can be on a rights basis i.e. the existing holders can get by way of their right, allotment of new shares in certain proportion to their earlier holding. If the shares are offered to a few of the existing shareholders instead to all shareholders or at a price different from the price at which they are issue to all, such issues are called preferential allotments. such offers have also to be in compliance with criteria laid down by SEBI. Preferential allotments require shareholders approval in the general body meeting. Further, all
Stock Trading:
An investor in securities needs assurance that they can convert their security holdings to cash to meet their cash requirements. The ability to convert value of securities into cash as and when anybody wants is called liquidity. The liquidity is provided by the stock exchange. Stock exchange is a platform where buyers and sellers of securities will match their bids and offers for securities and exchange securities with cash. The YUSUFJAY AYUB KHAN H. 10
offers and bids are routed through members of the stock exchange, popularly known as a broker. Stock exchange regulates the transactions of the broker and ensures that the transactions are conducted fairly and transparently with justice to both buyers and sellers.
Internet Trading:
With the Internet becoming ubiquitous, many institutions have set up securities trading agencies that provide online trading facilities to their clients from their homes. This has been possible since all the players in the securities market, viz. stockbrokers, stock exchanges, clearing corporations, depositories, DPs etc are linked electronically. Thus information flows amongst them on a real time basis.
INTERNET TRADING IN INDIA

In the past, investors had no option but to contact their broker to get real time access to market data and to trade the stock market. But with the passage of time, emergence of internet trading brings a new trend in the field of Stock Market. Now investor is not required to go to his/her broker to deal in the Stock Market but he/she can trade easily at their convenience. The Net brings data to the investor on line and net broking YUSUFJAY AYUB KHAN H. 11
enables him to trade on a click. Now information has become easily accessible to both retail as well as big investors. The development of broking in India can be categorized in 3 phases: 1. Stock brokers offering on their sites features such as live portfolio manager, live quotes, market research and news to attract more investors. 2. Brokers offering on line broking and relationship management by providing and offering analysis and information to investors during broking and non-broking hours based on their profile and needs, that is, customized services. 3. Brokers (now e-brokers) will offer value management or services such as Initial Public Offerings on line, portfolio management; financial planning, tax planning and insurance services enable the investors to take better and well-considered decisions. In the US, 82 per cent of the deals are done on line. The European on line broking market is expected to be of $8 billions and is likely to raise in near future. In India, currently on-line trading takes place through web sites. For example, if Reliance Money client having an on-line Account wants to trade on on-line then he/she has to visit the web-site of Reliance Money i.e. www.reliancemoney.com and then after client can trade on on-line. This will also require interface with banks to facilitate instant cash debit or credit and the depository system for debit or credit of securities.
Objectives of Internet Trading:

Increase transparency in the markets. Reduce settlement risks due to open trades, by elimination of mismatches. Provide management information system (MIS).
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Introduce flexibility in system, to handle growing volumes easily and to support nationwide expansion of market activity. Besides, through Internet trading three fundamental objectives of securities regulation can be easily achieved, these are: Investor protection, creation of a fair and efficient market and, reduction of the systematic risks.
STOCK EXCHANGES
BSE:
YUSUFJAY AYUB KHAN H. 13
India boasts of the oldest stock exchange in Asia -- the Bombay Stock Exchange is 125 years old. There are 23 recognized exchanges spread across the country, but a process of consolidation is now under way. Many of the regional stock exchanges have started aligning themselves with one or both of the two large exchanges (the Bombay Stock Exchange and the National Stock Exchange) both of which have VSAT networks that give them a nation wide reach.
NSE:
The National Stock Exchange is an unlisted for-profit company set up by some of the leading financial institutions of India. Most of the remaining stock exchanges are broker-owned (mutual) organizations, but the Bombay Stock Exchange is actively considering demutualization. The Securities and Exchange Board of India (SEBI), the apex regulator of the capital market has regulations that mandate a minimum number of outside directors on the governing board and provide greater autonomy to the professional executives in the day-to-day running of the exchange.
OVERVIEW ABOUT CENTRAL DEPOSITORY SERVICES (INDIA) LIMITED (CDSL)

CDSL is the second depository set up by the Bombay Stock Exchange (BSE) in India. It commenced its operations on March 22, 1999. It was set up BSE and other co sponsored with the net worth of Rs.104 corers. In it BSE has a 45 % stake while YUSUFJAY AYUB KHAN H. 14
others have 55 % stake. In the same year it has Five Stock Exchanges established connectivity with it for offering trade in Demat securities and 765 companies signed up with it to get their securities admitted for dematerialization. It has 13 DPs in 91 cities across 168 locations covering 320 cities. Other co sponsored are as under. State Bank of India Bank of India Bank of Baroda HDFC Bank
CDSL has also attained membership of the Asia Pacific Central Securities Depository Group (ACG). ACG has 22 members including depositories from Japan, Jog Kong, Singapore, Malaysia, Australia, and New Zealand. Membership of the organization is expected to help CDSL enhancing its knowledge base and contributing to the development of other member organizations in the best international practices, settlement risk management, cross-border linkage and technological development. This, in turn, would help CDSL to secure foreign institutional investors business through their custodian.
Operations Performed by CDSL:

Carrying out actually share transactions To do PSU disinvestments To provide Centralized system at one e-space To secure Foreign Institutional Investors business
Dematerialization of the Securities
Pledge creation in against the securities Trading and settlement on day to day basis Work as a custodian of its clients
OVERVIEW OF NATIONAL SECURITIES DEPOSITORY LIMITED (NSDL)

In a span of about four years, investors have switched over to electronic (Demat) settlement and NSDL stands at the center of this change. YUSUFJAY AYUB KHAN H. 15
NSDL is the first depository to be set up in India. It was incorporated on Dec. 12, 1995. IDBI the largest development bank in India, UTI the largest Indian mutual fund and the NSE the largest stock exchange of India sponsored the setting of NSDL and subscribed to the initial capital. NSDL commenced operations on Nov. 8, 1996. The following organizations are the shareholders of NSDL Industrial Development Bank of India Unit Trust of India National Stock Exchange State Bank of India Global Trust Bank Ltd. Citibank NA. Standard Chartered Bank. HDFC Bank Ltd. The Hong Kong and Shanghai Banking Corporation Ltd. Deutsche Bank. Dena Bank. Canara Bank
Operations performed at a depository are as follows:

Holds Securities in accounts Transfer Securities between accounts Transfers without handling physical securities. Safekeeping of securities
In the Depository:
All joint holders to sign instructions. No minimum balance required. YUSUFJAY AYUB KHAN H. 16
Interest can be earned only be participating in Stock Lending Scheme. Does not move balances in account without account holders authorization. Signature and photograph of nominees to be provided.
Providing the safety of shares of the share holders which are in their Demat account and in the Trading account.
Service standards of NSDL:

A DP has to deal in business with the following characteristics: Sensitive and Demanding clients. Intense competition on the price front due to which the profit margins are under tremendous pressure. Thin profit margins require high volume of clients/transactions for operating the DP services profitably. High volume of business is error prone, unless supported by appropriate systems and quality of manpowers.
STOCK EXCHANGES IN INDIA

Table 2: Name & Address of Stock Exchanges in India
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Name THE BOMBAY STOCK EXCHANGE THE AHMEDABAD STOCK EXCHANGE ASSOCIATION LTD,
Address Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001. Manek Chowk, Ahmedabad - 380 001 'M' Block, First Floor, Unity Building, J.C. Road, Bangalore - 560 002. 217, Budhraja Building,
BANGALORE STOCK EXCHANGE LTD,
BHUBANESHWAR STOCK EXCHANGE ASSN., Jharpada Cuttack Road, LTD, THE CULCUTTA STOCK EXCHANGE ASSOCIATION LTD, COCHIN STOCK EXCHANGE LTD., Bhuvaneswar, Orissa - 751 006. 7, Lyons Range, Calcutta - 700 001. Veekshanam Road P.B. 3529, Ernakulam, Cochi - 682 035. THE DELHI STOCK EXCHANGE ASSN. LTD., 3&4/4B, Asaf Ali Road, New Delhi 110 002. Saraf Building Annexe A.T. THE GAUHATI STOCK EXCHANGE LTD, Road, Guwahati - 781 001. THE HYDERABAD STOCK EXCHANGE LTD, Bank Street, Hyderabad - 500 001. Rajasthan Chamber JAIPUR STOCK EXCHANGE LTD, Bhawan, M.I. Road, Jaipur - 302 003. KANARA STOCK EXCHANGE LTD. 4th Floor, Rambhavan Complex, YUSUFJAY AYUB KHAN H. 18
Kodialbail, Mangalore - 575 003. THE LUDHIANA STOCK EXCHANGE ASSN. LTD. Lajpat Rai Market, Clock Tower, Ludhiana - 141 008. 'Exchange Building', MADRAS STOCK EXCHNAGE LTD. Post Box No.183, 11, Second Line Beach, Chennai - 600 001 MADHYA PRADESH STOCK EXCHANGE LTD. 67, Bada Sarafa, Indore - 452 002. Bihar Industries Assn. THE MAGADH STOCK EXCHANGE LTD. Premises, Sinha Library Road, Patna - 800 001. 1177, Budhwar Peth, Bank of Maharashtra Bldg., PUNE STOCK EXCHANGE LTD. 2nd Floor, Bajirao Road, Pune - 411 002. SAURASHTRA KUTCH STOCK EXCHANGE LTD., THE UTTAR PRADESH STOCK EXCHANGE ASSN. LTD. Rajkot - 380 002. Padam Towers, 14/113,Civil Lines, Kanpur - 208 001 101, Paradise Complex, VADODARA STOCK EXCHANGE LTD. Tilak Toad, Sayaji Gunj, Vadodara - 390 005. COIMBATORE STOCK EXCHANGE Chamber Tower, 8/732, Avvinashi Road, YUSUFJAY AYUB KHAN H. 19
Coimbatore 641 018. Kingsway Building, MEERUT STOCK EXCHANGE LTD. 345, Bombay Bazar, Meerut Cantonment - 250 001. Maker Towers "F" Cuffe OTC EXCHANGE OF INDIA. Parade, Bombay - 400 005. THE NATIONAL STOCK EXCHANGE OF INDIA LTD. Mahindra Towers, A-Wing, RBC, Worli, Mumbai 18
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COMPANY INFORMATION
RELIANCE ADA GROUP OF COMPANIES
R-Money (Reliance Money Ltd.) is a subsidiary of Reliance Capital Ltd., which belongs to Reliance Anil Dhirubhai Ambani Group.
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RELIANCE ADA GROUP
RELIANCE CAPITAL
RELIANCE COMMUNICATONS
RELIANCE ENERGY
RELLIANCE HEALTH
RELIANCE ENTERTAINMENT
Chart 1: Reliance Anil Dhirubhai Ambani Groups Companies
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The Reliance Anil Dhirubhai Ambani Group is among Indias 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). 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.
STRUCTURE OF RELIANCE- ADA GROUP
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Chart 2: Structure of Reliance ADA Group
GROUP PHILOSOPHY
VISION
We want to build a global enterprise for our share holders. We want a great future of our country. To give millions of young Indians the power to shape their destiny The means to realize their full potential
VALUES Shareholder Interest:

We value the trust of shareholders, and keep their interests paramount in every business decision we make, every choice we exercise.
People Care:
We possess no greater asset than the quality of our human capital and no greater priority than the retention, growth and well-being of our vast pool of human talent.
Consumer Focus:
We rethink every business process, product and service from the standpoint of the consumer so as to exceed expectations at every touch point.
Excellence in Execution:
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We believe in excellence of execution in large, complex projects as much as small everyday tasks. If something is worth doing, it is worth doing well.
Team Work:
The whole is greater than the sum of its parts; in our rapidly-changing knowledge economy, organizations can prosper only by mobilizing diverse competencies, skill sets and expertise; by imbibing the spirit of thinking together -- integration is the rule, escalation is an exception.
Proactive Innovation:
We nurture innovation by breaking silos, encouraging cross-fertilization of ideas & flexibility of roles and functions. We create an environment of accountability, ownership and problem-solving based on participative work ethic and leading-edge research.
Leadership by Empowerment:
We believe leadership in the new economy is about consensus building, about giving up control; about enabling and empowering people down the line to take decisions in their areas of operation and competence.
Social Responsibility:
We believe that organizations, like individuals, depend on the support of the community for their survival and sustenance, and must repay this generosity in the best way they can.
Respect for Competition:

We respect competition because theres more than one way of doing things right. We can learn as much from the success of others as from our own failures.
FOUNDER OF RELIANCE ADA GROUP

As with all great pioneers, 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 Indias capital markets, and the champion of shareholder interest. But the role Dhirubhai cherished most was perhaps that of Indias greatest wealth creator. In one lifetime, he built, starting from the proverbial scratch, Indias largest private sector enterprise. 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 colossusan achievement 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 Indias 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. Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to participate in the unfolding Reliance story and put their hard-earned money in the Reliance Textile IPO, promising them, in exchange for their trust, substantial return on their investments. It was to be the start of one of great stories of mutual respect and reciprocal gain in the Indian markets. Pursue your goals even in the face of difficulties, and convert adversities into opportunity Dhirubhai Hirachand Ambani
CHAIRMANS PROFILE
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Regarded as one of the foremost corporate leaders of contemporary India, Anil Dhirubhai Ambani is the Chairman of all listed Group companies, namely: Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources Limited. He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute of Information and Communication Technology, Gandhi Nagar, Gujarat. Till recently, he also held the post of Vice Chairman and Managing Director in Reliance Industries Limited (RIL), Indias largest private sector enterprise. Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally involved in every aspect of the companys management over the next 22 years. He is credited with having pioneered a number of path-breaking financial innovations in the Indian capital markets. He spearheaded the countrys first forays into the overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds. Starting in75 1991, he directed Reliance Industries in its efforts to raise over US$ 2 billion. He also steered the 100year Yankee bond issue for the company in January 1997.
He is a member of:

Wharton Board of Overseers, the Wharton School, USA. Central Advisory Committee, Central Electricity Regulatory Commission. Board of Governors, Indian Institute of Management, Ahmedabad.
Awards and Achievements:
Conferred the CEO of the Year 2004 in the Plats Global Energy Awards. 28
Rated as one of Indias Most Admired CEOs for the sixth consecutive Conferred The Entrepreneur of the Decade Award by the Bombay Awarded the First Wharton Indian Alumni Award by the Wharton India
year in the Business Barons TNS Mode opinion poll, 2004.
Management Association, October 2002.
Economic Forum (WIEF) in recognition of his contribution to the establishment of Reliance as a global leader in many of its business areas, December 2001. Selected by Asia week magazine for its list of Leaders of the Millennium in Business and Finance and was introduced as the only new hero in Business and Finance from India, June 1999.
BOARD OF DIRECTORS
Mr. Rakesh Jhunjhunwala Mr. Rajendra Chitale Mr. C. P. Jain
COMPANY SECRETARY
Mr. V. R. Mohan
INTRODUCTION ABOUT RELIANCE CAPITAL

Reliance Capital Ltd is a part of the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital has interests in asset management and mutual funds, life and general insurance, private equity and proprietary investments, stock broking and other activities in financial services.
Business Overview:
RCL is registered as a depository participant with National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL) under the Securities and Exchange Board of India (Depositories and Participants) Regulations, 1996. RCL has sponsored the Reliance Mutual Fund within the framework of the Securities and YUSUFJAY AYUB KHAN H. 30
Exchange Board of India (Mutual Fund) Regulations, 1996.RCL primarily focuses on funding projects in the infrastructure sector and supports the growth of its subsidiary companies, Reliance Capital Asset Management Limited, Reliance Capital Trustee Co. Limited, Reliance General Insurance Company Limited and Reliance Life Insurance Company Limited. As of March 31, 2005, the companys investment in infrastructure projects stood at Rs. 1071 Crore. The investment portfolio of RCL is structured in a way that realizes the highest post-tax return on its investments.
COMPANIES OF RELIANCE CAPITAL LTD.
Reliance Money
Reliance Mutual Fund
Reliance Insurance
Chart 3: Companies under Reliance Capital Ltd.
Reliance Mutual Fund (RMF) is one of Indias leading Mutual Funds, with Assets under Management (AUM) of Rs. 48,828 crore (AUM as on 30th Apr 2007) and Investor over 3.1 million. Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group, is one of the fastest growing mutual funds in the country. RMF offers investors a well-rounded portfolio of products to meet varying investor requirements and has presence in 115 cities across the country. YUSUFJAY AYUB KHAN H. 32
Reliance Mutual Fund constantly endeavors to launch innovative products and customer service initiatives to increase value to investors. Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management Ltd., a wholly owned subsidiary of Reliance Capital Ltd. Reliance Mutual Fund schemes are divided into three categories as below: 1. Equity / Growth Schemes 2. Debt / Income Schemes 3. Sector Specific Schemes
EQUITY / GROWTH SCHEMES
, capital appreciation, etc. and the investors may choose an option depending The aim of growth funds is to provide capital appreciation over the medium to Long - term. Such schemes normally invest a major part of their corpus in equities and comparatively high risks. These schemes provide different options to the investors like dividend option on their preferences. The mutual funds also allow the investors to change the options at a later date. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time. Types of Equity Schemes are as follows: Reliance Equity Fund Reliance Tax Saver (ELSS) Fund Reliance Equity Opportunities Fund Reliance Vision Fund Reliance Growth Fund 33
Reliance Index Fund Reliance NRI Equity Fund
DEBT / INCOME SCHEMES

The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. Types of Debt Schemes are as follows: Plan Reliance Income Fund Reliance Medium Term Fund Reliance Short Term Fund Reliance Liquid Fund Reliance Fixed Term Scheme 34 Reliance Monthly Income Plan Reliance Gilt Securities Fund - Short Term Gilt Plan & Long Term Gilt
Reliance Floating Rate Fund Reliance NRI Income Fund Reliance Fixed Maturity Fund - Series I Reliance Fixed Maturity Fund - Series II Reliance Liquidity Fund Reliance Regular Savings Fund
SECTOR SPECIFIC SCHEMES
These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents. E.g. Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of the respective sectors. While these funds may give higher returns, they are more risky compared to diversified funds. Types of Sector Specific Schemes are as follows:
Reliance Banking Fund Reliance Diversified Power Sector Fund Reliance Pharmacy Fund Reliance Media & Entertainment Fund 35
Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group, which along with its associates has acquired 100% shares in AMP Sanmar Life Insurance Co Ltd. Reliance Life Insurance is another step forward for Reliance Capital Limited to offer need based Life Insurance solutions to individuals and Corporate. Reliance Life Insurance has a pan presence and a range of products catering to individual as well as corporate needs. A total of 21 products covering savings, protection & investment requirements.
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GOALS

Emerge as transnational Life Insurer of global scale and standard. Achieve impeccable reputation and credentials through best business Vision: Empowering everyone live their dreams. Mission: Create unmatched value for everyone through dependable, Guiding Principles: Customer Care and Satisfaction Corporate Governance Creativity and Innovation Competitiveness
practices.

effective, transparent and profitable life insurance and pension plans.
PRODUCTS
1. Employee Benefits Plans Individual Plans
INDIVIDUAL PLANS
SAVINGS:
Reliance Endowment Plan Reliance Special Endowment Plan Reliance Cash flow Plan Reliance Child Plan Reliance Whole life Plan Reliance Connect 2 Life Plan
RETIREMENT:
Reliance Golden Years Plan Reliance Golden Years Plan Value Reliance Golden Years Plan Plus
UNIT LINKED:
Reliance Automatic Investment Plan Reliance Money Guarantee Plan Reliance Market Return Plan
RISK / PROTECTION:
Reliance Term Plan Reliance Simple Term Plan Reliance Special Term Plan Reliance Credit Guardian Plan Reliance Special Credit Guardian Plan
EMPLOYEE BENEFIT PLANS

Risk:
Reliance Group Term Assurance Policy Reliance EDLI Scheme
PENSIONS:
Reliance Group Gratuity Policy Reliance Group Superannuation Policy
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Reliance General Insurance, a Subsidiary of Reliance Capital, is one of the first nonlife companies to get the license from the IRDA. RGICL offers an exhaustive range of insurance products that covers most risks including Property, Marine, Casualty and Liability.
VISION
To be an insurer of World Standards and the most preferred choice for clientele at the domestic and global level.
MISSION
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Our Mission is to keep the customer satisfaction as focal point of all our operations, adopt the best international practices in underwriting, claims and customer service, be the most innovative in product development, establish presence all over India, ensure sustained value addition to all stake holders and to uphold Corporate Value & Corporate Governance.
OBJECTIVE

Make affordable insurance accessible to all Keep customer as focal point for all operations Protect policy holders interests Adopt best international practices in claims, underwriting and policy servicing Be the most innovative in product development Establish Pan India presence
VALUE PROPOSITIONS
Risk Evaluation: Provide expertise in risk evaluation and risk mitigation leading to the most appropriate risk transfer solution. Post sales services: Differentiate on service parameters by ensuring prompt and correct documentation& fair, transparent, speedy claims settlement. New products: Introduce innovative products suited to specific market segments. Training: Extensive training to the employees involved in underwriting and claims to ensure availability of a varied experienced and competent team to cater to the customer needs. Technology: Use IT as a means to provide for a far superior customer experience in terms of access, speed and simplicity.
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Reinsurance backing: Apart from using capacity of the national reinsure, establish relationships with the best reinsures across the world.
PRODUCTS
Health: Individual Mediclaim Group Mediclaim Reliance Health Policy Personal Accident: Personal Accident Group Personal Accident Fire: Standard Fire and Special Perils Consequential Loss (fire) Industrial all risks
Engineering: Storage-cum-Erection Contractors All Risks Contractors Plan and Machinery Machinery Breakdown Insurance Machinery Loss of Profit Insurance Boiler and Pressure Plant Insurance Electronic Equipment Insurance Marine: Marine Cargo Insurance Motor: Private Car Comprehensive Liability: Director and Officers Liability Public Liability (Act) Public Liability YUSUFJAY AYUB KHAN H. 41
Product Liability Professional Indemnity Workmens Compensation Miscellaneous: Industry Care Commercial Care Office Package Fidelity Guarantee Burglary and Housebreaking Money Insurance Householders Package Shopkeepers Package Travel: Individual and Family Asia Student Corporate
INTRODCTION
Reliance Money Ltd. is a subsidiary of Reliance Capital, Which belongs to Reliance ADA Group. Reliance Money is a financial transaction platform offering customers a wide range of classes to diversify their portfolio. Through Reliance Money, Customers would be able to transact in Equity, Derivatives, Commodities, Forex, IPOs, Mutual Funds and Insurance.
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The company is in the process of launching a comprehensive financial portal enabling to carry out on-line trading and investment activities in a secured, cost-effective and in convenient manner. To enable wider participation, Reliance Money also offers the convenience of off-line trading through its branches, call & trade facility, franchisee network and other technically a user-friendly methods.
ABOUT COMPANY
Reliance Money is a comprehensive electronic transaction platform offering a wide range of asset classes. Its endeavor is to change the way India transacts in financial markets and avails financial services. Reliance Money is a single window, enabling you to access, amongst others in Equities, Equity & Commodities Derivatives, Mutual Funds, IPOs, Life & General Insurance products, Offshore Investments, Money Transfer, Money Changing and Credit Cards. In short, Reliance Money is a Single window for all your financial transaction needs
RELIANCE MONEY TRANSACTING AND INVESTING SIMPLIFIED

Reliance money is set to revolutionize the way India transacts and invests in financial products and services.
Why a Reliance Money account makes sense?

Its cost-effective, convince, easy to use and safe. Heres a detailed look at the Reliance Money benefits: Cost-effective: The fee charged by the affiliates of reliance money through whom the transaction can be placed, is among the lowest charge in the present scenario. As an introductory YUSUFJAY AYUB KHAN H. 43
offer, pay a flat fee of just Rs. 500/- valid for 2months or specified transactional value. Illustrative table showing fee structure & validity limits. Table 1: Fees & Validity structure
Convince:
You have the flexibility to access Reliance Money services in multiple ways through: Internet Transaction Kiosks Phone (Call & Transact) All India network of associates
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Secured:
Reliance Money provides secure access through an electronic token that flashes a unique security number every 32 seconds and ensures that the number used 4 earlier transactions is discarded. The number works as third level password that keeps your account extra safe.
Single window for multiple products:

Through Reliance Moneys affiliates, one can transact in Equity, Equity & Commodity Derivatives, Offshore Investment, Mutual Funds, IPOs, Life Insurance, General Insurance, Money Transfer, Money Changing and Credit Cards.
3-in-1 Access:
Reliance Money Integrated access to your banking, trading and demat account you can transact without the hassle of writing cheques.
Demat Account with Reliance Capital:

Through Reliance Money, you get a hassle free demat account with reliance capital. Annual maintenance charge for demat account is Rs 50/- per annum. YUSUFJAY AYUB KHAN H. 45
Other services:
Through the portal www.reliancemoney.com, it provides:
News:
Live news from Capital Market and Dow Jones Derivative/ F & O news, Commodity news and Forex news
Research Reports:
Research Report covers Industry reports, Company Reports, Stock reports, Bullion reports, Forex Strategy.
Knowledge Centre:
Knowledge Centre provides knowledge on Equity, Derivatives, Mutual Fund, Commodities, Forex, and IPO.
Customer Service:
It solves query of customer online and it provide faculties like application locator, branch locator and downloading forms.
CHAIRMAN
CEO
Sales Head
Finance & Legal Head
Operation Head
HR Head
IT Head

Centre service Zonal Head Regional executives managers Managers (West) BDE Franchisee CST
Customer
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Centre managers BDE Franchisee CST
Centre service Zonal Head executives managers (East) BDE Franchisee CST
Customer
Zonal Head (South)
Zonal Head (North)
Regional Managers
Regional Managers
Regional Managers
Customer service executives
Centre managers
Customer service executives
BDE Franchisee CST
Chart 4: Organization Structure
IMPORTANT PEOPLE IN ORGANIZATION
Chairman CEO Sales Head Operation Head CS Head
: Mr. Anil D. Ambani : Mr. Sudip Bandyopadhyay : Mr. Kapil Bali : Mr. Pawan Kothari : Mr. Dipankar Mitra
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Equity Broking Head Commodity Broking Head Insurance Broking Head Finance & Legal Head IT Head Marketing and Comm. Head Facilities Head Infrastructure Head HR Head
: Mr. Ravi Doshi : Mr. Gurmeet Singh : Mr. S. Ravi : Mr. Jhuma Guha : Mr. Kshitij Shah : Mr. Bosco DMello : Mr. Manohar Chhabria : Mr. Vivek Jalan : Mr. Adrian Williams
RELIANCE MONEY SNAPSHOT

Reliance Money was registered on 17th June 2005. Currently more then 850employees across 75 Location spread across the country. Total no of offices: 42 (going up to 100 branches by end of 2007) Reliance Money offers customer a fixed flat fee structure for trading as compared to the conventional transaction based broking structure followed by the industry. In this structure, customers need to pay Rs 500 for delivery trades up to Rs 10 lacks and/or non-delivery trades of Rs 1 crore. 'Vasco's Dig pass will act as a 3rd level of security on Reliance Money website and safeguard its customers' funds from hackers and phishing. The customer in addition to his username and password will be required to type the number being flashed on his YUSUFJAY AYUB KHAN H. 48
personalized digital token at that given point in time, thus providing him with a unique, foolproof login system'. Reliance Money first company in India to provide trading through web-enabled retail kiosks. Almost 75,000 investors have logged in on to Reliance Money platform since inception in the 3 months. Besides, everyday 2000 new investors are added daily. Since inception in April, Reliance Money has already rolled out 2,500 kiosks and is present in 700 cities and towns in India. Reliance Money is First non-banking Company in the Private Sector to retail gold coins in India with highest purity Gold coins of 24 carat with 999.9 purity to be available in 5gm and 8gm across select Reliance Money and Reliance World outlets from Valcambi through the tie-up. Reliance Money ties up with Barista to install Reliance Money retail kiosks at its outlets across the country. Reliance Group launches Credit Cards in association with Citibank Reliance Credit Card holders can receive up to 5 add-on cards at no additional charges, free email statements, free alerts, and will be able to transfer money from one Visa Card to another using Citibank Online. Reliance money has to go for its foray in consumer finance and investment banking.
REGISTERED OFFICE:
Reliance Money Ltd, 6th floor, Nagin Mahal 82, Veer Nariman Road, Church Gate, Mumbai - 400 020
BRANCH OFFICE:
Reliance Money Ltd. Raiji Nagar Park YUSUFJAY AYUB KHAN H. 49
Motibaug Opt. icici bank Junagadh
SWOT ANALYSIS
Every company does SWOT Analysis for monitoring their current position in the market. They do this analysis for the purpose of identifying their strengths, weaknesses, opportunities and threats.
Reliance Money SWOT Analysis can be elaborated as follows:
STRENGTH:
Highly qualified, young, dynamic and dedicated team of employees all having
rich experience in stock broking industry. Strength of web trade is its strong features like 3 in 1 account. 50
Cost effective brokerage structure, highly convenient and security trading adds
to its features. Customer centric by providing them services of call centers and help desk.
WEAKNESS:
As it is established since 1 year, people are not aware regarding its multiple
benefits. The information technology has caused severe problems in trading that could
be a weakness to curb entry of its customers.
OPPORTUNITIES:
Due to its foray in various products it is having a greater opportunity of
occupying a greater market share and capturing the uncovered market.
THREATS:
Threats are always at your doorsteps when you are being placed as best. So is
the case with Reliance Money. The major threat is from ICICI web trade, HDFC, 5 paisa and sharekhan. They are the share trading firms who provide online trading. So Reliance Money has to be always aware about them and not only these three but also other competitors like Stockholding Corporation, Karvy, etc.
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REGULATORY INVIRONMENT INFORMATION
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. The four main legislations governing the securities market are 1. The Depositories Act, 1996 2. The SEBI Act, 1992 3. The Companies Act, 1956 4. The Securities Contracts (Regulation) Act, 1956 YUSUFJAY AYUB KHAN H. 52
A brief about these legislations are as given below:
The Depositories Act, 1996:

The Depositories Act, 1996 provides for the establishment of depositories for securities to ensure transferability of securities with speed, accuracy and security. For this, these provisions have been made: (i) making securities of public limited companies freely transferable subject to certain exceptions; (ii) dematerializing the securities in the depository mode; and (iii) providing for maintenance of ownership records in a book entry form. In order to streamline the settlement process, the Act envisages transfer of ownership of securities electronically by book entry without moving the securities from persons to persons. The Act has made the securities of all public limited companies freely transferable, restricting the companys right to use discretion in effecting the transfer of securities, and the transfer deed and other procedural requirements under the Companies Act have been dispensed with.
The SEBI Act, 1992:

The SEBI Act, 1992 was enacted to empower SEBI with statutory powers for (i) protecting the interests of investors in securities, (ii) promoting the development of the securities market, and (iii) regulating the securities market. Its regulatory jurisdiction extends over corporate in the issuing capital and all intermediaries and persons associated with securities market. It can conduct enquiries, audits and inspection of all concerned participants and adjudicate offences under this Act. It has powers to register and regulate all the market intermediaries. Further it can also penalize them in case of violations of the provisions of the Act, Rules and Regulations made there under. SEBI has full autonomy and authority to regulate and develop an orderly securities market.
The Companies Act, 1956:

It deals with issue, allotment and transfer of securities and various aspects relating to company management. It provides for standards of disclosure in the public issues, particularly in the fields of company management and projects, information about other listed companies under the same management, and management perception of risk factors. It also regulates underwriting, the use of premium and discounts on issues rights and bonus issues, payment of interest and dividends, supply of annual report and other information.
The Securities Contracts (Regulation) Act, 1956:

It provides for direct and indirect control of virtually all aspects of the securities trading including the running of stock exchanges which aims to prevent undesirable transactions in securities. It gives the Central Government regulatory jurisdiction over (i) stock exchanges through a process of recognition and continued supervision, (ii) contracts in securities, (iii) listing of securities on stock exchanges. As a condition of recognition, a stock exchange complies with the requirements prescribed by the Central Government. The stock exchanges frame their own listing regulations in consonance with the minimum listing criteria set out in the Rules.
RULES & REGULATIONS

The Government has framed rules under the SCRA, the SEBI Act and the Depositories Act. The SEBI has framed regulations under these acts for registration and regulation of the market intermediaries and for prevention of unfair trade practices. Under these Acts, the Government and the SEBI issue notifications, guidelines and circulars, which the market participants comply with. The SROs like the stock exchanges have also laid down their rules and regulations for the market participants to follow. The regulator has to ensure that the market participants abide by and adhere to the rules and regulations prescribed to them. This in turn shall ensure that the securities market continues to be a major source of finance for corporate and government and also protect the interest of investors. The responsibility for regulating YUSUFJAY AYUB KHAN H. 54
the securities market is shared by the Department of Economic Affairs (DEA), Department of Company Affairs (DCA), Reserve Bank of India (RBI) and SEBI. The activities of all these agencies are coordinated by a High Level Committee on Capital Markets. The orders of SEBI under the securities laws are applicable before the Securities Appellate Tribunal (SAT). Most of the powers under the SCRA are exercisable by DEA, while a few others by SEBI. The powers of DEA under SCRA are also con-currently exercised by SEBI. The regulation of the contracts for sale and purchase of securities, gold related securities, money market securities and securities derived from these securities and ready forward contracts in debt securities are exercised concurrently with the RBI. The SEBI Act and the Depositories Act are mostly administered by SEBI. The rules under the securities laws are framed by government and regulations by the SEBI. All rules are administered by SEBI. The powers under the Companies Act relating to issue and transfer of securities and non -payment of dividend are administered by SEBI in case of listed public companies and public companies proposing to get their securities listed. The SROs ensure compliance with their own rules as well as with the rules relevant for them under the securities laws.
AMFI
With the increase in mutual fund players in India, a need for mutual fund association in India was generated to function as a non-profit organization. Association of Mutual Funds in India (AMFI) was incorporated on 22nd August, 1995. AMFI is an apex body of all Asset Management Companies (AMC) which has been registered with SEBI. Association of Mutual Funds India has brought down the Indian Mutual Fund Industry to a professional and healthy market with ethical lines enhancing and maintaining standards. It follows the principle of both protecting and promoting the interests of mutual funds as well as their unit holders.
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FUNCTIONAL AREA INFORMATION
OPERATOPM DE[ARTMENT STUDY MARKETING DEPARTMENT STUDY FINANCE DEPARTMENT STUDY

HUMAN RESOURCE DEPARTMENT STUDY
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OPERTATIONS DEPARTMENT STUDY
CONTENTS
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NO. 1.
a. b. c. d. e. f. g. h. I. k. l. m. n. o.
PARTICULAR
PAGE
NO. OPERATION DEPARTMENT INFORMATION 2

INTRODUCTION TO PRODUCTION MANAGEMENT ORGANISATION STRUCTURE TYPES OF PLANT LAYOUT SELECTION OF LOCATION-FACTORS AFFECTING IT TYPES OF RAW MATERIAL AND PROCUREMTNT MATERIAL HANDELING SYSTEM PRODUCTION, PLANNING AND CNTROL SYSTEM REPAIR AND MAINTENANCE MANAGEMENT OF INDUSTRIAL SAFETY INTRODUCTION TO MATERIAL MANAGEMENT ROLE OF MATERIAL MANAGEMENT PURCHASE DEPARTMENT INVENTORY CONTROL METHODS QUALITY ASSURANCE 3 4 21 80 86 91 98 100
INTRODUCTION TO OPERATION MANAGEMENT
Operation is the basic activity of all the industrial units. All other activities revolve around this activity. We can say that operation activity is nothing but the step by step improvement of services technically or intellectually. The end output of the YUSUFJAY AYUB KHAN H. 59
operation activity is the creation of services for the satisfaction of human wants. The operation activity is process by which the utility enhanced.
According to E Buffa,
Operation is the process by which products or services are created. From the above definition we can say that it is simply the conversion of raw material or intellectual capability of an employee in to finished products and services. Operation management is the process of planning, organizing, directing, and controlling the activities of the operation function. Operation function is the conversion of human efforts into complete service.
In other words operation means creation of utilities and it covers all the activities of procurement, allocation and utilization of the resources such as employees, energy, materials, equipment, machinery etc. Operation must be operated in an economic and in efficient manner because cost of operation is a vital factor in facing market competition and in ensuring normal profit or return on the investment. Production management, which was formerly considered as manufacturing management, only now after induction of services into its scope, is broadly known as Operational Management. Operation of the company is done at every branch of the company and handled by its had office from Mumbai.
LOCATION DETAILS
Reliance Money is one of growing stock broking company in India with the help of its huge platform. It provides equity based products like derivatives, research, depository, equities etc. with the help of its 70 share branches located in metropolitan cities. More than 500 franchisees 60
More than 1000 remissars working all over India.
Reliance Money branches and franchises are located in the metro cities and cosmos cities other developing cities of India. The location is decided on the basis of mass of customers, available workforce and available infrastructure facilities. In addition to that, competitors location is also taken into consideration. JUNAGADH is selected as one of the promising locations business who gives 40% of whole business in Gujarat.
Reliance Money Registered office:

Reliance Money Ltd, 6th floor, Nagin Mahal 82, Veer Nariman Road, Church Gate, Mumbai 400 020
Branch Address:
Reliance Money Ltd. Raiji Nagar Park Motibaug Opt. icici bank Junagadh
LAYOUT DETAILS
Reliance money Branch consists of: YUSUFJAY AYUB KHAN H. 61
Centre Manager Cabin: Here all the business work and important decisions are
taken with a personal desktop.
Customer Service Executive Desk: The customers are attended on this desk
and all the queries regarding them are solved on this desk with a personal desktop.
BDEs Desk: The BDEs are provided with the desktop for preparing a MIS for the
business preformed by them.
Guest Area: The entire guests are requested to be sitted in the guest area
comprising of the Sofa.
Kiosks: An innovative eye will catch you while one sees transactions Kiosks which
are fitted on the wall and which are positioned on other side. This kiosk is meant for carrying out trading to the investors.
PROCUREMENT AND MATERIAL HANDLING DETAILS
There is inflow of material like Forms, Advertisement material, policy papers, brochures. All the material is first inwarded by the Office Boy in the inward register YUSUFJAY AYUB KHAN H. 62
and the Material is sorted according to addressed. In the same way all the Outward Material is first recorded in the outward and then it is packed for sending. All the confidential material is handled by CSEs according to its importance. All important documents like Cheques and duly signed by the receiving authority and a photocopy of it is kept.
Maintenance:
The maintenance of all the important is important aspect. The Office boy manages all documents, which are of regular purpose. All the important documents are maintained by the customer service executive.
Store Management DP secure system:

DP Secure System is software that stores the customers data in a digital file system. It connects all the branches of Reliance Money at national level. The customers address, their user ID for the concern demats accounts etc. have been stored in this file system as soon as they register their name with Reliance Money. This type of digital file system is very economic and convenient because one can retrieve the customer data as and when it requires. However, other important documents and bills are maintained through file system. Moreover the day to day regular information is stored in MIS Raising from a Small Query to all purchases and Sales. All the DATA is stored in the centralized way.
OPERATION STRATEGY
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The main aim of the operations strategy at Reliance Money is that the efficiency of the organization and high level of desired outputs with low costs, i.e., productivity with effectiveness. Quality should be high and consistent in delivering services; Flexibility is related with fast introduction of new services and providing a wide range to select an option to the customer. The process of operations, capacity/ability of the organization, competitive advantages, vertical integration and the infrastructure created by the firm facilitate this. Reliance Money plans the strategies to get a working plan from it and the planning is done from top-to-bottom level, i.e., national level, regional level, divisional level and the branch level planning is carried out by the managers. In this way, the Operations are managed with the best efforts in a direction that is to facilitate future plans by achieving success in time and create milestones in the industry by making the company driven by values and excellence.
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MARKETING DEPARTMENT STUDY
CONTENTS
65
NO. 1.
PARTICULAR MARKETING DEPARTMENT INFORMATION

INTRODUCTION TO MARKETING MANAGEMENT ORGANISATION STRUCTURE PRODUCTS
PRODUCT MIX (product line, width, length, depth) PRODUCT LIFE CYCLE NEW PRODUCT DEVELOPMENT BRANDING AND PACKAGING
PAGE NO. 2
PRICING
MEHTODS AND STRATEGIES ADVERTISING (media, budget, types, appeal) SALES PROMOTION PUBLICITY PERSONAL SELLING (network, methods) VERIOUS CHANNELS NETWORK SELECTION CHANNEL CO-OPERATION CONFLICT
PROMOTION MIX
CHANNEL MANAGEMENT
LEGAL AND RECENT ISSUE RELETED WITH MARKETING
PRODUCT OFFERINGS
1. 2. 3. 4. 5.
6.
EQUITY DERIVATIVES COMMODITY MUTUAL FUNDS OFFSHORE INVESTMENT LIFE AND GENERAL INSURANCE MONEY TRANSFER IPO 9. PORT FOLIO MANAGEMENT SERVICES 10. FOREX
7. 8.
1.
EQUITY
Reliance Money offers you various options while trading in shares. Cash Trading: This is a delivery based trading system, which is generally done with the intention of taking delivery of shares.
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Margin Trading: You can also do an intra-settlement trading up to 3 to 4 times your available funds, wherein you take long buy/ short sell positions in stocks with the intention of squaring off the position within the same day settlement cycle. BTST: Buy Today Sell Tomorrow (BTST) is a facility that allows you to sell shares even on 1st and 2nd day after the buy order date, without you having to wait for the receipt of shares into your demat account.
Trading on NSE/BSE:
Through reliancemoney.com, you can trade on NSE as well as BSE. Market Order: You could trade by placing market orders during market hours that allows you to trade at the best obtainable price in the market at the time of execution of the order. Limit Order: Allows you to place a buy/sell order at a price defined by you. The execution can happen at a price more favorable than the price, which is defined by you, limit orders can be placed by you during holidays & non market hours too.
DERIVATIVES
FUTURES:
Through reliancemoney.com, you can now trade in index and stock futures on the NSE. In futures trading, you take buy/sell positions in index or stock(s) contracts having a longer contract period of up to 3 months.
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Trading in FUTURES is simple. If, during the course of the contract life, the price moves in your favour (i.e. rises in case you have a buy position or falls in case you have a sell position), you make a profit. Presently only selected stocks, which meet the criteria on liquidity and volume, have been enabled for futures trading. Calculate Index and Know your Margin are tools to help you in calculating your margin requirements and also the index & stock price movements.
OPTIONS:
An option is a contract, which gives the buyer the right to buy or sell shares at a specific price, on or before a specific date. For this, the buyer has to pay to the seller some money, which is called premium. There is no obligation on the buyer to complete the transaction if the price is not favorable to him. To take the buy/sell position on index/stock options, you have to place certain percentage of order value as margin. With options trading, you can leverage on your trading limit by taking buy/sell positions much more than what you could have taken in cash segment. The Buyer of a Call Option has the Right but not the Obligation to Purchase the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Call has the obligation of selling the Underlying Asset at the specified Strike price. The Buyer of a Put Option has the Right but not the Obligation to Sell the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Put has the obligation of buying the Underlying Asset at the specified Strike price. By paying lesser amount of premium, you can create positions under OPTIONS and take advantage of more trading opportunities.
MUTUAL FUND
CONCEPT OF MUTUAL FUNDS

A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.
IN RELIANCE MONEY
Reliancemoney.com brings you the same convenience while investing in Mutual funds also - Hassle free and Paperless Investing. You can invest in mutual funds without the hassles of filling application forms or any other paperwork. You need no signatures or proof of identity for investing. Once you place a request for investing in a particular fund, there are no manual processes involved. Your bank funds are automatically debited or credited while simultaneously crediting or debiting your unit holdings. You also get control over your investments with online order confirmations and order status tracking. Get to know the performance of your investments through online updating of MF portfolio with current NAV.
Reliancemoney.com offers you various options while investing in Mutual Funds:

Purchase: You may invest or purchase Reliance Mutual Fund, Prudential ICICI Mutual Fund, JP Morgan Mutual Fund, Alliance Mutual Fund, Franklin Templeton Mutual Fund, Sundaram Mutual Fund, Birla Sun Life Mutual Fund, HDFC Mutual Fund, SBI Mutual Fund, Tata AIG Mutual Fund and Standard Chartered Mutual Fund without the hassles of filling application forms. Redemption: In addition to giving hassle-free paperless redemption, it offers faster liquidity. You can redeem the mutual fund units through reliancemoney.com. The YUSUFJAY AYUB KHAN H. 70
money will be credited to your bank account automatically after three days after the order placement date. Switch: To suit your changing needs you may wish to shift monies between different schemes. You can switch your monies online from one scheme to another in the same fund family without any hassles.
Systematic Investment Plans (SIP): SIP allows you to invest a certain sum of money over a period of time periodically. Just fill in the investment amount, the period of investment and the frequency of investing and submit. Reliancemoney.com will do the rest for you automatically investing periodically for you. Systematic Withdrawal Plan: This allows you to withdraw a certain sum of money over a period of time periodically. Transfer-in: You can convert your existing Mutual funds into electronic mode through a transfer-in request.
FOREX
The global foreign exchange market is the biggest market in the world. The nearly USD 2 trillion daily turnover exceeds the combined turnover of the entire worlds stock and the bond markets. Forex or foreign exchange is the simultaneous exchange of one countrys currency for that of another. Trader in the Forex market wish to purchase or sell one currency for another with the hope of making a profit when the value of the currencies changes in favor of the investor, whether from market news or events that take place in the world The Foreign exchange market is the market where exchange rates are YUSUFJAY AYUB KHAN H. 71
determined. Exchange rates are the mechanisms by which world currencies are tied together in the global marketplace, providing the price of one currency in the terms of another. Like in any another market, demand and supply determine the price of currency. At any point of time in any given country, the exchange rate is determined by the interaction of demand for foreign currency and the corresponding supply for foreign currency. Thus, the exchange rate is the equilibrium price determined by demand and supply considerations. Until the late 1990s, large financial institutions dominated the Forex market. Over the last several years the market has witnessed a dramatic evolution, with independent firms offering direct access to the forex market via internet enabled trading platforms. Savvy individual investors are now tapping into the Forex markets significant profit potential, with access to the same pricing, market data and tools used by the institutions, hedge funds and professional traders. Today, there are several Global Brokers dealers registered with regulatory bodies in different countries, offering Retail Forex to the clientele which is generally spread across 100-110countries. Reliance money is one such broker which is permitted to trade in Forex on India. The forex market is an over the counter market with no centralized exchange. Traders have a choice between firms that offer trade- clearing services. There is no centre location where trade occurs, i.e. It is a very decentralize structure.
LIFE AND GENERAL INSURANCE

What Is Life Insurance?
Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. The contract is valid for payment of the insured amount during:
The date of maturity, or 72
Specified dates at periodic intervals, or Unfortunate death, if it occurs earlier.
Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner. By and large, life insurance is civilizations partial solution to the problems caused by death. Life insurance, in short, is concerned with two hazards that stand across the life-path of every person. Reliance Money Offers Life Insurance and General Insurance to its customers. Life insurance helps Provide financial assurance & security for your dependents & loved ones. It is an important part of the financial planning bouquet for all individuals & families. Life insurance products offer comprehensive financial solutions which besides offering financial security also provide opportunity for saving, investment & tax planning. It offers the Life insurance of Reliance Life insurance and TATA AIG Insurance. Reliance General Insurance, a Subsidiary of Reliance Capital, is one of the first nonlife companies to get the license from the IRDA. RGICL offers an exhaustive range of insurance products that covers most risks including Property, Marine, Casualty and Liability.
MONEY TRANSFER
Technology has advanced so much that it has now become easier to exchange money, access it as any currency in any part of the world. As a global phenomenon, new financial institutions have emerged to make money transfers simple through the internet. Most of the money transfers are done by NRIs who wish to send money back home to India. Indian and foreign banks are now actively involved in getting more customers to hit their websites to garner more business. One can have single or joint accounts and have fixed deposits.
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Some charges connected to exchange rate will be applicable. If necessary one has to find out the rates of the day to know how much money will be deducted. Reliance Money with western union money transfer has started a subsidiary company of reliance money known as TRAVEL MATE for easy transfer of money.
INNITIAL PUBLIC OFFERINGS (IPO)

You could also invest in Initial Public Offers (IPOs) and Bonds online without going through the hassles of filling ANY application form/ paperwork. Get in-depth analyses of new IPOs issues (Initial Public Offerings) which are about the market and analysis on these. IPO calendar, recent IPO listings, prospectus/offer documents, and IPO analysis are few of the features, which help you, keep on top of the IPO markets.
PERSONAL FINANCE
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Use our Personal Finance section and get hold of tools that can help you plan your investments, retirement, tax etc. Analyze your risk profile through the risk analyzer and get a suitable investment portfolio plan using asset allocator.
CUSTOMER SERVICE FEATURES

With reliancemoney.com you can trouble shoot all your problems online. Address your trading queries on-line through "Easy Mail". You can view and change your profile or password on-line through General Profile option. Get details of Reliance money Centers, our sales and service offices, across India through branch locator. View your account statement and bill summary of your transactions online using bills & accounts. View your digital contract notes instantly. View various charges through the fee schedule option. Give your feedback or viewpoint through the viewpoint online. Enroll yourself for various Reliance direct workshops through register for customer sessions.
PORTFOLIO MANAGEMENT SERVICES (PMS)

1. What is PMS?
As you drive towards your objective of creating wealth, you need to employ the right investment vehicles, at the right time. Given the unpredictable nature of equity markets, staying on course requires expert maneuvering, time and effort. That's where Portfolio Management comes in. It gives your portfolio the edge by skillfully sifting through available investment opportunities to help you reduce risk and maximize your returns; even as you are left with ample time to focus on more pressing matters. YUSUFJAY AYUB KHAN H. 75
Portfolio management is all about strengths, weaknesses, opportunities and threats in the choice of debt vs. equity, domestic vs. international, growth vs. safety, and many other tradeoffs encountered in the attempt to maximize return at a given appetite for risk.
2. Who is it for?
Our portfolio management service is well suited for high-net worth customers:

who are investing in Indian equities who desire create wealth over longer period who appreciate a higher level of service
3. Who can sign up for PMS?

Any one of the following can sign up for PMS

Resident Individuals (Minimum investment is Rs.5,10,000) Non-Resident/PIO (Minimum investment is USD 50,000 / Rs 20 Lacs) Hindu Undivided Families (HUF) Association of Persons Limited Companies Trust Partnership Firms Societies
4. How safe are my securities under the Portfolio Management Service?
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With a view to create transparency in reporting standards of portfolio management arena, we have appointed Deutsche Bank for custody banking and settlement Functions of all our Portfolio Management Services.
5. How will I know my tax status?

We expect all clients to consult their tax consultant before investing into any form of securities. At Reliance Money, we give each client an audited tax statement of his portfolio annually. The same can be used when you file your returns.
6. Do this PMS generate guaranteed returns? IF not, what are the expected returns?
Reliance Money offers various schemes to suit individual investment objectives. As per regulations governing Portfolio Management Services in India, neither capital nor returns can be guaranteed. We shall endeavor to outperform the benchmark indices like Nifty but there can be no guarantee or certainty of the same. We believe, over long term, equities' performance will track corporate performance. We expect India's GDP to grow at 7-8% p.a. in real terms; or 12-13% p.a. in nominal terms. Therefore historical trends indicate that well managed portfolios in Indian equities should give minimum 20-25% p.a. returns.
7. What is the time horizon and is there a lock-in period?

In most of our schemes there is no lock-in period and the ideal time horizon for an equity portfolio is at least 18-24 months.
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8. After the account opening procedures are completed, can a third party fund my account?
Only the account holder can deposit funds for PMS.
9. Is Lock-in period applicable to top up as well?

Top ups are not allowed during the lock in period of close ended schemes.
10. What are the charges for availing PMS?

The customers can opt for a flat fee or performance based fee. Detailed charge list will be sent with the welcome kit. Brokerage, Service tax, Security transaction Tax & Other Statutory levies as applicable
11. What is the mode of payment for the charges incurred for PMS services?
Will get deducted from the customers funds on monthly basis for Fixed fee and annually for Performance based fee.
12. Is there a reporting tool available online? If yes, what are the various reports available for clients online and what is their frequency?
The client can log on to www.reliancemoneypms.com with the user details provided to him. Customer can constantly be in touch with his portfolio.
13. What is the minimum and maximum amount required to avail the facility?
Resident clients can avail the services with a minimum initial investment of Rs.5.10 Lacs only. The NRI/PIO clients can sign up with minimum of USD 50000.There is no upper limit on the investment. YUSUFJAY AYUB KHAN H. 78
14. Are Partial withdrawals allowed? If yes, any charges applicable with the same?
Clients can withdraw the funds provided the balance does not go below Rs. 5 Lacs for residents and USD 50000 for NRI/PIOs. Exit load will be applicable in the Close ended Schemes as per the slab. On Open ended schemes no exit charges are applicable.
15. Does a client need to get the agreement notarised? What will be the Stamp Value?
The Stamping/Notarisation will be done by Reliance Securities. The clients just need to sign the documents.
16. Are we accepting securities? If yes, then what is the valuation norm for such securities?
We will accept securities (discretionary) and the valuation will be done on the sell price of the security after the same has been transferred to our DP.
17. Is it mandatory to have a demat account? If yes, is it to be with Reliance Money only or any other DP?
For PMS demat account is not mandatory. The trading is done in a pool account.
18. What are the requirements for NRI accounts?

The NRI/PIO clients need to have the following:
NRE/NRO Saving account. 79
NRE Demat account PIS Account.
19. Is there a preferred bank for NRI accounts?

Axis Bank Ltd would be preferred because of their global presence.
20. Is PAN Card mandatory for NRI?

Yes, PAN card is a mandatory requirement for all PMS accounts.
21. Why Equity PMS and not a Mutual Fund?
In PMS, the portfolio manager, before taking up an assignment of management of funds or portfolio of securities on behalf of the client, enters into an agreement in writing with the client clearly defining the inter se relationship and setting out their mutual rights, liabilities and obligations relating to the management of funds or portfolio of securities containing the details as specified in the SEBI (Portfolio Managers) Regulations. Thus when the portfolio manager deploys the funds, he only considers the needs of specific client. Mutual Fund schemes on other hand have a common investment objective for all the investors of the scheme and no investor can influence the fund managers investment decision
Mutual Funds work in more regulated and restricted environment and their investments are based on common investment objectives and mandated asset allocation as specified in the offer document. Portfolio Management Service providers on other hand are authorized by the investors to take investment decision on their behalf and have relatively more freedom to choose securities as the investment norms are flexible and depend on the agreement signed with the client
More Transparency of expenses. Can open account by transferring securities as well as cash Investors can suggest constraint - (Islamic or Jain Constraint). 80
22. What will be the process of Security transfer for PMS and at what value?
The customer would fill up the transfer of share for in the account opening form. It will then be approved by the compliance of Reliance Securities and the same would be informed back to the customer via email or FAX. The customer would then go to his DP and after filling up the Instruction slip the transfer will get reflected in Reliance Securities DP with Deutsche Bank. Then the securities would be sold off and the customer will get the valuation at the SELLING PRICE of the security.
UPCOMING PRODUCTS
1. 2. 3.
CREADIT CARDS GOLD COINS CONSUMER FINANCE
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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: ICICI direct.com Angel Securities Religare Securities India Infoline Kotak Securities Motilal Oswal Securities Sharekhan IdbiPaisabuilder H.D.F.C. Online 5 paise.com Stock Holding Corporation Ltd. Marvadi finance Curvy consultancy Other Stock Brokers Now lets see brief details of some competitors of Reliance Money.
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ICICIdirect.com is a brokerage house of ICICI bank. It has a unique 3-in-1 account that gives you: Convenience: the 3-in-1 account integrates your banking, broking and demat accounts. This enables you to trade in shares without going through the hassles of tracking settlement cycles, writing cheques and Transfer Instructions, chasing your broker for cheques or Transfer Instructions etc. Speed: You can now get the latest quotes of scripts on ICICIdirect.com and place an order almost instantly. Control: You can be assured that you have in fact placed an order at the price you always wanted to, but may not have been able to do so till now. Thereby giving you control over your own trades. Independence: Instead of transferring monies to a broker's pool or towards deposits, you can manage your own demat and bank accounts when you trade through ICICIdirect.com.
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Trust: ICICIdirect.com comes to you from ICICI, the organization trusted by millions of Indians.
E-broking service of Angel Trade provides you on-line trading facilities on BSE / NSE (Cash and F&O), NCDEX and MCX through our 3 unique e-trading softwares especially designed for traders as well as investors. Trading in securities / commodities using the internet platform is a convenient option. We provide you an opportunity to trade on BSE / NSE (Cash and F&O), NCDEX and MCX from the comfort of your home or office. Our internet trading platform gives you state-of-the-art trading facility, order and trade confirmation, e-contracts and 24X7 on-line web enabled back-office system at the click of a button.
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SALIENT FEATURES OF ANGEL TRADE
Multiple exchanges on a single screen: Online trading on BSE / NSE (Cash and F&O), MCX and NCDEX on a single screen. Speed: We use the latest technology to generate efficient uptime and greater stability to give you high speed. Competitive brokerage rates: We believe in providing our clients the best value added services at the most competitive brokerage rates. Optimum margins: Angel gives you the trading exposure at optimum margin level. Online funds transfer: The clients enjoy the convenience of online transfer of funds from their bank accounts, to the margin account of Angel, online. Personalized service: HNI clients can avail of personalized advisory services from our trained and experienced dealers, regarding trading opportunities. Off line services: You are free to make a telephone call to any of our 71 well equipped branches across the country.
Technology: Angel provides the latest infrastructure tools to support and integrate the backend and front office functionalities. Back office infrastructure: We provide an automated web enabled centralized back-office whereby the clients can have access to their trade confirmation reports, holding statement, their net position, the margins and the statement of accounts and ledgers on a 24 X 7 basis. Technical support: We remove technical difficulties through an online support system manned by qualified professionals.
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E - Contract notes cum bills: We provide contract notes cum bills in electronic form resulting in ease of access to trades carried out by the clients on any particular day.
Religare is driven by ethical and dynamic process for wealth creation. Based on this, the company started its endeavour in the financial market. Religare Enterprises Limited (A Ranbaxy Promoter Group Company) through Religare Securities Limited, Religare Finvest Limited, Religare Commodities Limited and Religare Insurance Broking Limited provides integrated financial solutions to its corporate, retail and wealth management clients. Today, we provide various financial services which include Investment Banking, Corporate Finance, Portfolio Management Services, Equity & Commodity Broking, Insurance and Mutual Funds. Plus, theres a lot more to come your way. Religare is proud of being a truly professional financial service provider managed by a highly skilled team, who have proven track record in their respective domains. Religare operations are managed by more than 3000 highly skilled professionals who subscribe to Religare philosophy and are spread across its country wide branches. Today, we have a growing network of more than 300 branches and more than 580 business partners spread across more than 300 cities/towns in India and a fully operational international office at London. Unlike a traditional broking firm, Religare group works on the philosophy of partnering for wealth creation. We not only execute trades for our clients but also provide them critical and timely investment advice. The growing list of financial
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institutions with which Religare is empanelled as an approved broker is a reflection of the high level service standard maintained by the company.
India Infoline Ltd is listed on both the leading stock exchanges in India, viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE). The India Infoline group, comprising the holding company, India Infoline Ltd and its subsidiaries, straddles the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits.
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Kotak Securities Ltd. is India's leading stock broking house with a market share of around 8.5 % as on 31st March. Kotak Securities Ltd. has been the largest in IPO distribution. The company has a full-fledged research division involved in Macro Economic studies, Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news. Kotak Securities Ltd is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL), providing dual benefit services wherein the investors can use the brokerage services of the company for executing the transactions and the depository services for settling them. Kotak Securities has 195 branches servicing more than 2,20,000 customers and a coverage of 231 Cities. Kotaksecurities.com, the online division of Kotak Securities Limited offers Internet Broking services and also online IPO and Mutual Fund Investments. Kotak Securities Limited manages assets over 2500 crores of Assets under Management (AUM) .The portfolio Management Services provide top class service, catering to the high end of the market. Portfolio Management from Kotak Securities
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comes as an answer to those who would like to grow exponentially on the crest of the stock market, with the backing of an expert. Open an investing account and begin right away. Whether you are a beginner or an expert trader, Kotak has different accounts to suit your needs:
Kotak Gateway: Ideal if you are just starting out in the equity markets. Kotak Value: Tailor-made to meet the needs of the experienced investor. Kotak Privilege Circle: A line up of premier trading services to suit your needs. Kotak High Trader: Intra-day trading account with Auto-square off that lets you
take higher exposure.
Kotak Freeway: Unlimited trading for a fixed monthly fee. Kotak Flat: Flat Fee Brokerage - First of its kind broking product offering fixed fee
brokerages.
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Motilal Oswal Financial Services is a well diversified financial services group having businesses in securities, commodities, investment banking and venture capital. Motilal Oswal Securities Limited (MOSL) has established itself as the Most Independent Research - Local Brokerage (Asia Money Brokers Poll 2006). Our Institutional Equities Division combines the efforts of our Research and Sales & Trading departments to best serve clients' needs. The retail business unit provides equity investment solutions to more than 50,000 investors through 270 outlets spanning 150 cities and 22 states. MOSL provides Advice-Based Broking, Portfolio Management Services (PMS), E-Broking Services, Depository Services, Commodities Trading, and IPO and Mutual Fund Investment Advisory Services, Retail Wealth Management,. Its Value PMS Scheme gave a 160% post-tax return for the year ended March 2004. With value investing at the core of its investment philosophy, a strong research team consistently provides high-performance ideas. Motilal Oswal Securitys equity research has been consistently ranked very highly in surveys conducted by leading international publications like Asia money and Institutional Investor. In Asia Money Brokers Poll 2003 MOSt has been rated as the Best Domestic Research House - Mega Funds ,while in 2000 and 2002 it has been rated as the Best Domestic Equity Research House and Second best among Indian brokerage respectively.
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Sharekhan, Indias leading stock broker is the retail arm of SSKI, and offers you depository services and trade execution facilities for equities, derivatives and commodities backed with investment advice tempered by decades of broking experience. A research and analysis team is constantly working to track performance and trends. Sharekhan has the trading products, which are having one of the highest success rates in the industry. Sharekhan is having 578 share shops in 178 cities; the largest chain of retail share shops in India is of Sharekhan. In future, Sharekhan is planning to enter in Mutual funds, Insurance sector and banking sector to expand beyond the market currently covered by it and it has started MF (Mutual Funds) on priority basis but wants to grow in it.
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OTHER STOCK BROKERS

We can also include the other Stock Brokers at the city level of each city in the list of the competitors of Reliance Money. Because up to some extent they are also grabbing the market of the Reliance Money in stock Broking field.
Marketing department executes functions to attract and keep customers and to maximize the value derived from them. Also to satisfy the customer with prompt services & meeting the customer expectations. Two major factors of marketing are the recruitment of new customers and the retention and expansion of relationships with existing customers The various marketing philosophy followed at Reliance Money are:
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Marketing department executes functions to attract and keep customers and to maximize the value derived from them. Also to satisfy the customer with prompt services & meeting the customer expectations. Two major factors of marketing are the recruitment of new customers and the retention and expansion of relationships with existing customers The various marketing philosophy followed at Reliance Money are:
MARKET SEGMENTATION
Markets Segment consists of group of customers who share a similar set of wants. Marketers identify and profile distinct group of buyers who might prefer or require varying product and services mixes. Indian people are very much attached to share trading. It could be said that they are highly attached to the stock market. But there are varied types of customers available who trade in the market depending on their knowledge, time, earning, access, occupation, age. Therefore the market is segmented on two Bases. First one is Online basis and second one is Offline basis.
ONLINE
OFFLINE
Chart 7: Market Segmentation
The Online customers are those customers who are techno friendly, self dependent, knowledge oriented, business class having high turnover or professionals, etc. they generally avail the facilities by themselves and trade by their own. Therefore, Reliance Money provides such type of customers with online facilities of dealing in equity, derivative, etc. YUSUFJAY AYUB KHAN H. 93
The Offline customers are those who deal in the traditional way with the help of brokers.
MARKET TARGETING
Long term traders are those traders who generally invest for long term i.e. for more than one year. They generally trade on delivery base having a turnover around Rs.5 Lacks These traders includes professionals, businessman who does not trade too frequently. Hence, Reliance money offers Flat fee of Rs.500 for 1 year to these kinds of investors. Position traders are those traders who trade on weekly basis. They generally trade on delivery base and often are involved in intraday transactions. Their approximate turnover for the month is around 50 Lacks. Reliance money offers Flat fee of Rs. 500 for 2 months to these investors. Day traders are regular and heavy traders who generally work on several scripts to gain up the profit in the market. They generally trade on intra-day and Futures and options basis. Their approximate turnover is 3 crores for 6 months. Reliance money offers them Flat fee of Rs.1350 for 6 months to these investors. For investors who heavily trade in intraday and future and options get an opportunity to trade for Flat fee of Rs. 2500 for I year for transactions up to Rs. 6 crore.
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POSITIONING STRATEGY
Reliance money has position itself as a house solving all ones financial problems due to its product portfolio. Wheres There is the Question of Your Money, The answer is Reliance Money Reliance Money is a financial transaction platform offering customers a wide range of classes to diversify their portfolio. Through Reliance Money, Customers would be able to transact in Equity, Derivatives, Commodities, Forex, IPOs, Mutual Funds and Insurance. Therefore Reliance money could be said that Reliance Money is A Unique solution centre to solve your problems. Moreover its cost effective, convenient, secure and easy access portal makes all this possible. Reliance Money directly suits to the customer who has bulks of money but lacks its investment options.
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CHANNEL OF DISTRIBUTION
Reliance Money offers multiple trading channels, to facilitate the buying and selling of shares. You can walk into any of 70 share shop across 70 cities in India to execute your orders.
CHANNELS OF DISTRIBUTION
FRANCHISEE
REMISSARS
WEB WORLDS
BDE
Chart 8: Channel of Distribution
Franchises: Reliance money branches do not permit Share Trading at their places.
The power trade facilities are put up at the franchises outlets and the offline customers are supposed to trade at the franchisees places. Franchisees earn profit by bringing new customers and while share trading.
Remissars: The sub brokers or remissars who bring the online accounts and
business of Mutual funds and insurance. They are in turn paid commission for their service.
Web World: Being part of ADAGs family, a Relationship officer is partnered at

Web world to attend the walk-ins of the reliance money.
Business Development Executive: The BDEs work under the centre manager
and are supposed to perform duties regarding of the AOFs and mutual Funds. They are outsourced.
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PRICING POLICY
Reliance Money is having different price structure for its different investors which are as shown above in Product Detail section, Table No.1, Page No.24 Customers can avail following schemes:
Scheme No. 1:
Rs. 500 - here he gets a turnover limit of Rs.1 crore and time span of 2 months. He can take maximum delivery of Rs.10 lacks.
Scheme No. 2:
Scheme No. 3:
PROMOTIONAL SCHEME
As a promotional technique to penetrate in the market, Reliance money introduced a scheme of RS.500 of Flat fee for 1 Year for turnover of RS.5 Lack. This technique can be said as a trial base scheme for investors to check in the services, system and the trading platform. Moreover this scheme is also useful for small investors and primary market investors.
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INNOVATIVE PRACTICE EMPLOYED
Reliance money has shown an innovative platform of share trading that is trading through Kiosks. Moreover it provides a RSA Security token that is the third security code besides user name and password.
MARKETING STRATEGIES
Marketing strategy adopted by Reliance money in this competitive era is market pentrating strategy. Due to multiple stock broking houses providing various services and Reliance money being a new entrant adopted a pricing strategy by charging flat fee to its customers and giving them a convenient platform to perform its operations.
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FINANCE DEPARTMENT STUDY
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CONTENTS
NO. 1.
a. b. c. d. e. f.
PARTICULAR FINANCE DEPARTMENT INFORMATION
PAGE NO. 2
3 4 21 80 86 91
INTRODUCTION TO FINANCIAL MANAGEMENT ORGANISATION STRUCTURE CAPITALISATION AND CAPITAL STRUCTURE LEVERAGE ANALYSIS CAPITAL BUDGETING SOURCE OF FINANCE
LONG TERM SHORT TERM
g.
WORKING CAPITAL MANAGEMENT

RECIEVABLES CASH INVENTORY
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h.
DIVIDEND POLICY
Financial Aspect is the most important Aspect of the company. We can say that Finance is the life blood for any organization. Without funds and its proper utilization YUSUFJAY AYUB KHAN H. 100
no company can function. So, proper utilization and effective management of funds becomes the prime duty for any finance department. All the financial aspects are handled at the Head office except the Cash Management System regarding the cheques of accounting opening and the transaction basis cheques.
BANKERS
Allahabad Bank Punjab National Bank HDFC Bank State Bank of Hyderabad ICICI Bank Syndicate Bank UTI Bank City Bank
NOTE
Company has not given any kind of financial data. Therefore, I have not put any kind of financial data in the finance department.
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HUMAN RESOURE DEPARTMENT STUDY
CONTENTS
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NO. 1.
a. b. c. d. e. f. g. h. I. k. l. m. n. o. p.
PARTICULAR HUMAN RESOURCE DEPARTMENT INFORMATION

INTRODUCTION TO HRM ORGANISATION STRUCTURE HUMAN RESOURCE PLANNING RECRUITMENT SOURCES SELECTION METHODS PLACEMENT INDUCTION TRAINING AND DEVELOPMENT PERFORMANCE APPRAISAL POLICY
JOB EVALUATION
PAGE NO. 2
4 21 80 86 91 98 100
WAGE AND SALERY ADMINISTRATION PROMOTION,TRANSFER AND DEMOTION POLICY WELFARE POLICYAND ROLE OF HRD TRADE UNION AND INDUSTRIAL RELATION DISPUTE MANAGEMENT SOCIAL RESPONSIBILITY
In my book, we have no greater asset than the quality of our intellectual capital, and no greater priority than the growth and retention of our vast pool of talent Anil Dhirubhai Ambani
Human resource is the crucial resource that a company can use to grow with the work or the employees. Anil Ambanis Words showed the important of HR in Reliance Money. The HR Activities are performed at Mumbai for Higher level positions. For YUSUFJAY AYUB KHAN H. 103
selection of Centre Managers and Customer Service Executive, the Zonal and Regional HR Mangers in Consultation with the Regional Head. But ADAG has a Powerful HR CULTURE. Currently there are 750 onrolls employees in Reliance Money.
MISSION OF HR DEPARTMENT
Transparent HR policies and robust processes are driven by a single overarching.
Objective: To attract, nurture, grow and retain the best leadership talent in every
sector and industry is which we operate. Reliance Money aim is to create a team of world beaters that is:

Committed to excellence in quality, Focused on creation and enhancement of stakeholder value Responsive to evolving business needs and challenges Dedicated to uphold the core values of the Group
PROMISE
In order to achieve our objective, we offer our people...

Growth opportunities to expand leadership capabilities True meritocracy and freedom to choose career paths Opportunities to develop and hone leadership and functional capabilities An entrepreneurial environment where people can pursue their dreams Competitive compensation
OUR EXPECTATIONS
At Reliance - Anil Dhirubhai Ambani Group, we encourage our colleagues to take leadership, at all levels of the organization, and participate in accelerating growth of our businesses to build a formidable enterprise. Leaders in Reliance - Anil Dhirubhai Ambani Group are expected to YUSUFJAY AYUB KHAN H. 104
Always keep the customers needs in mind and constantly innovate Execute flawlessly and with speed Sustain and strengthen the groups spirit of entrepreneurshiptaking ownership and accountability for their actions
Leverage synergies to learn and build on the diverse experiences and skill sets of our various businesses and teams
Create a true meritocracy with a pervasive commitment to transparent systems and processes
MANPOWER PLANNING
Reliance Money, Being a growing organization, it is of utmost importance to implement a correct manpower planning process. To ensure that appropriate personnel are available to meet the requirements, HR manager is engaged in employment planning by determining the current and future supplies and demands for centre mangers cluster heads, customer service executives, business development executives etc. As it is expanding its offices and opening at certain locations it is having a ready workforce to work at those locations. For E.G. Reliance Money is shortly opening in Bhavnagar. Therefore, its CSEs and CMTs are already trained at Ahmedabad and ready for working at Bhavnagar. To meet the requirements, its first step is very correct.
RECRUITMENT
The process of Discovering potential Job candidate is a toughest on. In Reliance Money, Recruitment is through two ways. 1. Internal Recruitment 2. External recruitment YUSUFJAY AYUB KHAN H. 105
Reliance money has on rolls only Centre managers, centre manger Trainee Customer Service, Customer Service Trainee. Therefore it has to undertake recruitment for them only. BDEs are outsourced by two agencies i.e. Team Lease and Patricks Ltd. For centre mangers the candidate is supposed to climb its first step, i.e., he should be first centre manger Trainee. And similarly for Customer Service Executive, he should be first Customer Service Trainee or person with 2 year of rich experience. Therefore for centre manager the recruitment is generally through internal recruitment. For centre manager trainee recruitment, Reliance Money goes for Campus recruitments and private consultancy. The recruitment advertisement is also given in The Economic times for recruitment of its staff. Similarly for cluster Heads and Regional Head the recruitment is done through internal recruitment taking their performance, qualifications, years of experience etc. The Business Development Executive are outsourced but are selected by the centre mangers. Thus, for different designations in the organization, the recruitment process set is different. Poll A Friend - A Special initiative is arranged if any employee Gives reference of any candidate for recruitment and the candidate is selected then the employee gets Rs.10000 of cash.
SELECTION
The Selection for any of the On Rolls position is done by a Formal interview with the Zonal HR Manager and Regional Manager. The selection is done on the basis of the Qualifications, Experience, and Experience Soft skills etc. The Centre managers do the selection of the BDEs. YUSUFJAY AYUB KHAN H. 106
TRAINING
1. Training for the new recruit:
Any new recruit is firstly inducted to the company and sent for T & D department that is covered under HRD and T & D programmes makes employees aware about all the activities/jobs within the department he/she is to be recruited. The induction programmes of Reliance Money culture is designed with the following objectives: Provide an overview of the company's business and product portfolio. Enable the new employee to understand the work culture and processes / systems. Provide an opportunity to interact with his/her superiors/colleagues and enable him to understand them better. During induction, employees are: Provided their own workspace Given a copy of this Employee Handbook Introduced to assignments related to their role
INDUCTION PROGRAMME
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The induction programme is designed by the function heads along with the HR team. The duration of the induction programme varies from two days to a week depending upon the role on the new joinee. The induction programme in the company covers three broad areas:
HR philosophy and practices:

Reliance Money values Overview of HR policies, systems and practices Overview of risk & compliance practices
About the job:

Key responsibilities and expectations of the job Goal setting and performance measurements Then the specific job training is provided at H/O and the person has to keep in touch with the concerned department at H/O on internet because he/she has to solve many conflicts arising in the investor's mind and to have an up-to-date information regarding the procedures and any new facilities or policies to resolve the problems of the clients. It is a must for each employee because the employee is the people by whom the company gets its customers and retains them.
2. Training for existing employees:

At Reliance Money, it has been our endeavor to create a learning environment by providing developmental opportunities for our employees. This training calendar is YUSUFJAY AYUB KHAN H. 108
another step in the same direction towards building individual & organizational capabilities. On the job Training is provided to the centre mangers and Customer services executives regarding new process set or on introduction of some new products through IP or centralized server. Off the job training is provided to Centre mangers during their review meeting or during the special training trip organized regarding some marketing initiatives. To the CSEs off the job training is provided regarding the call centre service, Dial and Trade, AOFs Checking, Online trading etc. The centre manager is responsible for providing training to the BDEs. Generally it is provided on the job Training.
PERFORMANCE APPRAISAL
It is most important to measure the performance of the employees so that they could easily move in employee grading charts and for differing them on salary packages. YUSUFJAY AYUB KHAN H. 109
A 360-degree feedback performance appraisal is done of the centre mangers by their Regional Heads. The centre managers are measured on basis of their contributions of AOFs per month, mutual fund business. Life Insurance and General Insurance logins, all this is measured against the target given in percentage terms. For Customer service Executives, the measurement scale is updation of MIS, Rejection less AOFs, Processing of Query, DRF Maintenance, and Branch Maintenance. A review meet to measure the performance of all centre managers and Customer Service Executives is done once in a quarter by Regional Head. On the basis of the performance the Centre Managers and Customer Service executives, the grades and Ranks are allocated to them. For honouring outstanding performance of the employees, the annual session is organized. Moreover the outperforming employees are given trips as their gifts.
FACILITIES GIVEN TO EMPLOYEES
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We at Reliance Money would like to contribute towards enhancing our employees and their familys life by extending benefits that are of relevance and importance to our employees. Here is the summarized form of the benefits that are available to our employees.
Medi-claim insurance Provident Fund Gratuity Accident Insurance MAPIN registration Web browsing and Internet usage
OTHER BENEFITS
Term Insurance Policy:

Reliance Money provides term insurance cover (death in case) to all employees.
Employee Marriage Gift Policy:

We believe that our employees are part of a Reliance Money family. Just as employees are an integral part of all the developments and celebrations of Reliance Money, we too would like to be a part of one of the most important event in the life of our employeeMarriage. The Employee Marriage Gift Policy is instrumental in showering our best wishes on the newly married couple.
Medi-claim Policy:
Reliance Money provides Medi-claim cover to all employees. The detailed information on the policy, relevant processes and the TPA (Third Party Administrator) appointed by the company is attached in the annexure. Employees have the option of covering their dependents under this policy for any amount not exceeding the limit for the employee; however the cost of the same will have to be borne by individual employees.
Travel Policy:
It is recognized that for many employees travel expenses are incurred in order to further business objectives. Policies and guidelines are necessary to justify reimbursable expenses incurred by company clients. In general, the quality of travel accommodations, entertainment and related expenses is governed by what is reasonable and appropriate to the business purpose involved. This travel policy applies to all employees of the company. There are primarily two categories of travel that you are required to undertake during the course of your employment in the company: Local travel Domestic travel Only for Directors
Local travel
Any travel within extended boundaries of your city of operation is taken as local travel. Employees using personal cars on company business will be reimbursed at Rs.6 per k.m. for a four-wheeler and Rs.3 per k.m. for a two-wheeler. To be reimbursed for use of their personal car for business, travelers must provide their expense report with details about the purpose of the trip, date and location, petrol and/or diesel receipts and mileage. Travel by higher mode should be for valid and compelling reasons and should be approved by the immediate superior. For those using public transport (taxi, train, bus) for local travel the immediate supervisor will have to approve the cost incurred.
Leave and Holiday Policy:

Reliance money provides the following types of leaves/holidays: Holidays Privilege leave Maternity leave Paternity leave
Holidays:
The Company will declare a list of 12 holidays every year based on the holidays declared by the exchanges, bank holidays and regional festivals.
Privilege leave:
25 working days
Paternity leave: 2 working days Maternity leave: 12 weeks
SEPARATION
Termination of employment is a difficult decision, both for the employee and the organization.
Voluntary termination:
An employee is considered to have voluntarily terminated his/her employment with Reliance Money when the employee: Voluntarily resigns Fails to return from vacation or from approved leave of absence as per the scheduled time. Employees who choose to resign are required to provide Reliance Money with the appropriate notice period as specified in the employment terms or an appointment letter.
Exit interview:
Employees leaving Reliance Money for any reason will go through an exit interview procedure with the HR team. This interaction will provide the employee to express views on his/her association with the organisation as well as provide feedback regarding certain areas processes etc.
114
LIST OF CHARTS
Chart No.
01. 02. 03. 04. 05. 06. 07. 08.
Detail
Reliance ADAG Companies Structure of Reliance ADAG Companies under Reliance Capital Ltd. Organization Structure Indian Financial System Capital Market Process Market Segmentation Channel of distribution
Page No.
04 06 13 27 45 48 78 80
115
LIST OF TABLES
Table No.
01. 02.
Detail
Fees & Validity Structure Stock Exchanges in India
Page No.
24 55
116
BIBLIOGRAPHY
BOOKS REFERED
Philip kottler, Marketing Management, Eleventh Edition, 2002, Prentice-Hall of India, New Delhi
Chunavala & Patel, Production and Operations Management, Fifth Edition, 2003, Himalaya Publishing House, Mumbai.
Telsang Martand, Industrial Engineering and Production Management, Second Edition, 2002, S. Chand & Co. Ltd. New Delhi.
Ashwathappa K., Human Resource and Personnel Management, Fourth Edition, 2005, Tata McGraw-Hill Publishing Company Ltd., New Delhi
117
WEBSITES
www.reliancemoney.com www.relianceadag.com www.reliancecapital.co.in www.icicidirect.com www.angelbroking.com www.sebi.com www.google.com www.kotaksecurities.com www.amfiindia.com
118

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CONTENTS

YUSUFJAY AYUB KHAN H.

OVER ALL INTRODUCTION

EXECUTIVE SUMMARY INDUSTRY INFORMATION COMPANY INFORMATION REGULATORY ENVIRONMENT INFORMATION

YUSUFJAY AYUB KHAN H.

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INDIAN CAPITAL MARKET

INDIAN FINANCIAL SYSTEM

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CALL MONEY MARKET COMMERCIAL BILLS TREASURY BILLS TERM MONEY

CERTIFICATES OF DEPOSITS PUBLIC ISSUE NSE F&O COMMERCIAL PAPERS

Chart 5: Indian Financial System

YUSUFJAY AYUB KHAN H.

CAPITAL MARKET PROCESS

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Chart 6: Capital Market Process

Initial Public Offering (IPO):

Preferential Offer or Rights Issue:

INTERNET TRADING IN INDIA

Objectives of Internet Trading:

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OVERVIEW ABOUT CENTRAL DEPOSITORY SERVICES (INDIA) LIMITED (CDSL)

Operations Performed by CDSL:

Dematerialization of the Securities

OVERVIEW OF NATIONAL SECURITIES DEPOSITORY LIMITED (NSDL)

Operations performed at a depository are as follows:

Service standards of NSDL:

STOCK EXCHANGES IN INDIA

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BANGALORE STOCK EXCHANGE LTD,

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RELIANCE ADA GROUP OF COMPANIES

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RELIANCE ADA GROUP

Chart 1: Reliance Anil Dhirubhai Ambani Groups Companies

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STRUCTURE OF RELIANCE- ADA GROUP

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Chart 2: Structure of Reliance ADA Group

VALUES Shareholder Interest:

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Respect for Competition:

FOUNDER OF RELIANCE ADA GROUP

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Awards and Achievements:

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year in the Business Barons TNS Mode opinion poll, 2004.

Management Association, October 2002.

Mr. Rakesh Jhunjhunwala Mr. Rajendra Chitale Mr. C. P. Jain

INTRODUCTION ABOUT RELIANCE CAPITAL

COMPANIES OF RELIANCE CAPITAL LTD.

Reliance Mutual Fund

Chart 3: Companies under Reliance Capital Ltd.

EQUITY / GROWTH SCHEMES

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Reliance Index Fund Reliance NRI Equity Fund

DEBT / INCOME SCHEMES

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SECTOR SPECIFIC SCHEMES

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effective, transparent and profitable life insurance and pension plans.

EMPLOYEE BENEFIT PLANS