INTERNSHIP PROJECT REPORT PORTFOLIO MANAGEMENT IN RELIANCE COMMERCIAL FINANCE LTD

ACKNOWLEDGEMENT Undertaking any project in life proves to be a milestone in more ways than one. Its successful completion relies on a myriad people and their priceless help. I am deeply indebted to all who have inspired, guided and helped me in the successful completion of the project. I owe debt of gratitude to them, who were so generous with their valuable time and expertise. Through this acknowledgement I express my sincere gratitude towards all those people who helped me in this project, which has been a learning experience. I am thankful to my guide and mentor Prof. Dipti Sharma for guiding me throughout this study without their help this thesis would have not be completed. I appreciate the co-ordination extended by my friends and also express my sincere thankfulness to the entire faculty members of Indian Institute of Planning & Management, Delhi, giving me the opportunity to do this project/study and also assisting me for the same.

TABLE OF CONTENT

TOPIC Title page Completition certificate from the company / organization Acknowledgements Table of contents Executive summary Introduction Research objectives and methodology Body of the Report Industry Overview Reliance Commercial Finance Ltd Company Details Competitors Information Primary findings and analysis An Assessment Of The Internship Recommendations Conclusion Annexure Bibliography

EXECUTIVE SUMMARY

Reliance Commercial Finance aims to enable people fulfill all their ambitions by creating assets for personal & business requirements.

It offers an exhaustive suite of financial solutions Mortgages Loans, Loans against property, Loans for Commercial Vehicles, Loans for Construction Equipment, SME Loans, Auto Loans, business loans, Loans against Securities and Infrastructure Financing

Whats more, with the help of our easy-to-use loan calculator, you can decide on the tenure, interest rate and the loan amount that best suits you.

Reliance Commercial Finance has a loan book size of Rs. 13,927 crore (US$ 2.8 billion), with a customer base of over 1,01,000 customers, as on September 30, 2011, across the top 18 Indian metros.

Reliance Commercial Finance prides itself in creating customized financial solutions for our partners and customers by offering great Turnaround Time.

INTRODUCTION PORTFOLIO MANAGEMENT SERVICES Portfolio (finance) means a collection of investments held by an institution or a private individual. Holding a portfolio is often part of an investment and risk-limiting strategy called diversification. By owning several assets, certain types of risk (in particular specific risk) can be reduced. There are also portfolios which are aimed at taking high risks these are called concentrated portfolios. Investment management is the professional management of various securities (shares, bonds etc) and other assets (e.g. real estate), to meet specified investment goals for the benefit of the investors. Investors may be institutions (insurance companies, pension funds, corporations etc.) or private investors (both directly via investment contracts and more commonly via collective investment schemes e.g. mutual funds). The term asset management is often used to refer to the investment management of collective investments, whilst the more generic fund management may refer to all forms of institutional investment as well as investment management for private investors. Investment managers who specialize in advisory or discretionary management on behalf of (normally wealthy) private investors may often refer to their services as

wealth management or portfolio management often within the context of so-called "private banking". The provision of 'investment management services' includes elements of financial analysis, asset selection, stock selection, plan implementation and ongoing monitoring of investments. Outside of the financial industry, the term "investment management" is often applied to investments other than financial instruments. Investments are often meant to include projects, brands, patents and many things other than stocks and bonds. Even in this case, the term implies that rigorous financial and economic analysis methods are used. Need of PMS As in the current scenario the effectiveness of PMS is required. As the PMS gives investors periodically review their asset allocation across different assets as the portfolio can get skewed over a period of time. This can be largely due to appreciation / depreciation in the value of the investments. As the financial goals are diverse, the investment choices also need to be different to meet those needs. No single investment is likely to meet all the needs, so one should keep some money in bank deposits and / liquid funds to meet any urgent need for cash and keep the balance in other investment products/ schemes that would maximize the return and minimize the risk. Investment allocation can also change depending on ones risk-return profile.
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Objective of PMS There are the following objective which is full filled by Portfolio Management Services. 1. Safety Of Fund: The investment should be preserved, not be lost, and should remain in the returnable position in cash or kind. 2. Marketability: -

The investment made in securities should be marketable that means, the securities must be listed and traded in stock exchange so as to avoid difficulty in their encashment.
3. Liquidity: -

The portfolio must consist of such securities, which could be encashed without any difficulty or involvement of time to meet urgent need for funds. Marketability ensures liquidity to the portfolio.
4. Reasonable return: -

The investment should earn a reasonable return to upkeep the declining value of money and be compatible with opportunity cost of the money in terms of current income in the form of interest or dividend. 5. Appreciation in Capital: The money invested in portfolio should grow and result into capital gains. 6. Tax planning: Efficient portfolio management is concerned with composite tax planning covering income tax, capital gain tax, wealth tax and gift tax. 7. Minimize risk: -

Risk avoidance and minimization of risk are important objective of portfolio management. Portfolio managers achieve these objectives by effective investment planning and periodical review of market, situation and economic environment affecting the financial market.

PORTFOLIO CONSTRUCTION The Portfolio Construction of Rational investors wish to maximize the returns on their funds for a given level of risk. All investments possess varying degrees of risk. Returns come in the form of income, such as interest or dividends, or through growth in capital values (i.e. capital gains). The portfolio construction process can be broadly characterized as comprising the following steps: 1. Setting objectives. The first step in building a portfolio is to determine the main objectives of the fund given the constraints (i.e. tax and liquidity requirements) that may apply. Each investor has different objectives, time horizons and attitude towards risk. Pension funds have long-term obligations and, as a result, invest for the long term. Their objective may be to maximize total returns in excess of the inflation rate. A charity might wish to generate the highest level of income whilst maintaining the value of its capital

received from bequests. An individual may have certain liabilities and wish to match them at a future date. Assessing a clients risk tolerance can be difficult. The concepts of efficient portfolios and diversification must also be considered when setting up the investment objectives.

2. Defining Policy. Once the objectives have been set, a suitable investment policy must be established. The standard procedure is for the money manager to ask clients to select their preferred mix of assets, for example equities and bonds, to provide an idea of the normal mix desired. Clients are then asked to specify limits or maximum and minimum amounts they will allow to be invested in the different assets available. The main asset classes are cash, equities, gilts/bonds and other debt instruments, derivatives, property and overseas assets. Alternative investments, such as private equity, are also growing in popularity, and will be discussed in a later chapter. Attaining the optimal asset mix over time is one of the key factors of successful investing. 3. Applying portfolio strategy. At either end of the portfolio management spectrum of strategies are active and passive strategies. An active strategy involves predicting trends and changing expectations about the likely future performance of the various asset classes and actively dealing in and out of investments to
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seek a better performance. For example, if the manager expects interest rates to rise, bond prices are likely to fall and so bonds should be sold, unless this expectation is already factored into bond prices. At this stage, the active fund manager should also determine the style of the portfolio. For example, will the fund invest primarily in companies with large market capitalizations, in shares of companies expected to generate high growth rates, or in companies whose valuations are low? A passive strategy usually involves buying securities to match a preselected market index. Alternatively, a portfolio can be set up to match the investors choice of tailor-made index. Passive strategies rely on diversification to reduce risk. Outperformance versus the chosen index is not expected. This strategy requires minimum input from the portfolio manager. In practice, many active funds are managed somewhere between the active and passive extremes, the core holdings of the fund being passively managed and the balance being actively managed. 4. Asset selections. Once the strategy is decided, the fund manager must select individual assets in which to invest. Usually a systematic procedure known as an investment process is established, which sets guidelines or criteria for asset selection. Active strategies require that the fund managers apply analytical skills and judgment for asset selection in order to identify undervalued assets and to try to generate superior performance. 5. Performance assessments
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In order to assess the success of the fund manager, the performance of the fund is periodically measured against a pre-agreed benchmark perhaps a suitable stock exchange index or against a group of similar portfolios (peer group comparison). The portfolio construction process is continuously iterative, reflecting changes internally and externally. For example, expected movements in exchange rates may make overseas investment more attractive, leading to changes in asset allocation. Or, if many large-scale investors simultaneously decide to switch from passive to more active strategies, pressure will be put on the fund managers to offer more active funds. Poor performance of a fund may lead to modifications in individual asset holdings or, as an extreme measure; the manager of the fund may be changed altogether. Steps to Stock Selection Process

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Types of Assets The structure of a portfolio will depend ultimately on the investors objectives and on the asset selection decision reached. The portfolio structure takes into account a range of factors, including the investors time horizon, attitude to risk, liquidity requirements, tax position and availability of investments. The main asset classes are cash, bonds and other fixed income securities, equities, derivatives, property and overseas assets.

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 Cash and cash instruments Cash can be invested over any desired period, to generate interest income, in a range of highly liquid or easily redeemable instruments, from simple bank deposits, negotiable certificates of deposits, commercial paper (short term corporate debt) and Treasury bills (short term government debt) to money market funds, which actively manage cash resources across a range of domestic and foreign markets. Cash is normally held over the short term pending use elsewhere (perhaps for paying claims by a non-life insurance company or for paying pensions), but may be held over the longer term as well. Returns on cash are driven by the general demand for funds in an economy, interest rates, and the expected rate of inflation. A portfolio will normally maintain at least a small proportion of its funds in cash in order to take advantage of buying opportunities.

Bonds Bonds are debt instruments on which the issuer (the borrower) agrees to make interest payments at periodic intervals over the life of the bond this can be for two to thirty years or, sometimes, in perpetuity. Interest payments can be fixed or variable, the latter being linked to prevailing levels of interest rates. Bond markets are international and have grown rapidly over recent years. The bond markets are highly liquid, with many issuers of similar standing, including governments (sovereigns) and stateguaranteed organizations. Corporate bonds are bonds that are issued by
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companies. To assist investors and to help in the efficient pricing of bond issues, many bond issues are given ratings by specialist agencies such as Standard & Poors and Moodys. The highest investment grade is AAA, going all the way down to D, which is graded as in default. Depending on expected movements in future interest rates, the capital values of bonds fluctuate daily, providing investors with the potential for capital gains or losses. Future interest rates are driven by the likely demand/ supply of money in an economy, future inflation rates, political events and interest rates elsewhere in world markets. Investors with short-term horizons and liquidity requirements may choose to invest in bonds because of their relatively higher return than cash and their prospects for possible capital appreciation. Long-term investors, such as pension funds, may acquire bonds for the higher income and may hold them until redemption for perhaps seven or fifteen years. Because of the greater risk, long bonds (over ten years to maturity) tend to be more volatile in price than medium- and short-term bonds, and have a higher yield. Equities Equity consists of shares in a company representing the capital originally provided by shareholders. An ordinary shareholder owns a proportional share of the company and an ordinary share carries the residual risk and rewards after all liabilities and costs have been paid. Ordinary shares carry the right to receive income in the form of dividends (once declared out of distributable profits) and any residual claim on the companys assets once its liabilities have been paid in full. Preference shares are another type of share capital. They differ from ordinary shares in that the
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dividend on a preference share is usually fixed at some amount and does not change. Also, preference shares usually do not carry voting rights and, in the event of firm failure, preference shareholders are paid before ordinary shareholders. Returns from investing in equities are generated in the form of dividend income and capital gain arising from the ultimate sale of the shares. The level of dividends may vary from year to year, reflecting the changing profitability of a company. Similarly, the market price of a share will change from day to day to reflect all relevant available information. Although not guaranteed, equity prices generally rise over time, reflecting general economic growth, and have been found over the long term to generate growing levels of income in excess of the rate of inflation. Granted, there may be periods of time, even years, when equity prices trend downwards usually during recessionary times. The overall long-term prospect, however, for capital appreciation makes equities an attractive investment proposition for major institutional investors. Derivatives Derivative instruments are financial assets that are derived from existing primary assets as opposed to being issued by a company or government entity. The two most popular derivatives are futures and options. The extent to which a fund may incorporate derivatives products in the fund will be specified in the fund rules and, depending on the type of fund established for the client and depending on the client, may not be allowable at all.

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A futures contract is an agreement in the form of a standardized contract between two counterparties to exchange an asset at a fixed price and date in the future. The underlying asset of the futures contract can be a commodity or a financial security. Each contract specifies the type and amount of the asset to be exchanged, and where it is to be delivered (usually one of a few approved locations for that particular asset). Futures contracts can be set up for the delivery of cocoa, steel, oil or coffee. Likewise, financial futures contracts can specify the delivery of foreign currency or a range of government bonds. The buyer of a futures contract takes a long position, and will make a profit if the value of the contract rises after the purchase. The seller of the futures contract takes a short position and will, in turn, make a profit if the price of the futures contract falls. When the futures contract expires, the seller of the contract is required to deliver the underlying asset to the buyer of the contract. Regarding financial futures contracts, however, in the vast majority of cases no physical delivery of the underlying asset takes place as many contracts are cash settled or closed out with the offsetting position before the expiry date. An option contract is an agreement that gives the owner the right, but not obligation, to buy or sell (depending on the type of option) a certain asset for a specified period of time. A call option gives the holder the right to buy the asset. A put option gives the holder the right to sell the asset. European options can be exercised only on the options expiry date. US options can be exercised at any time before the contracts maturity date. Option contracts on stocks or stock indices are particularly popular. Buying an option involves paying a premium; selling an option
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involves receiving the premium. Options have the potential for large gains or losses, and are considered to be high-risk instruments. Sometimes, however, option contracts are used to reduce risk. For example, fund managers can use a call option to reduce risk when they own an asset. Only very specific funds are allowed to hold options. Property Property investment can be made either directly by buying properties, or indirectly by buying shares in listed property companies. Only major institutional investors with long-term time horizons and no liquidity pressures tend to make direct property investments. These institutions purchase freehold and leasehold properties as part of a property portfolio held for the long term, perhaps twenty or more years. Property sectors of interest would include prime, quality, well-located commercial office and shop properties, modern industrial warehouses and estates, hotels, farmland and woodland. Returns are generated from annual rents and any capital gains on realization. These investments are often highly illiquid. Types of Portfolios The different types of Portfolio which is carried by any Fund Manager to maximize profit and minimize losses are different as per their objectives .They are as follows. Aggressive Portfolio:

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Objective: Growth. This strategy might be appropriate for investors who seek High growth and who can tolerate wide fluctuations in market values, over the short term.

Growth Portfolio: Objective: Growth. This strategy might be appropriate for investors who have a preference for growth and who can withstand significant fluctuations in market value.

Balanced Portfolio:

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Objective: Capital appreciation and income. This strategy might be appropriate for investors who want the potential for capital appreciation and some growth, and who can withstand moderate fluctuations in market values

Conservative Portfolio: Objective: Income and capital appreciation. This strategy may be appropriate for investors who want to preserve their capital and minimize fluctuations in market value.

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TECHNIQUES OF PORTFOLIO MANAGEMENT Various types of portfolio require different techniques to be adopted to achieve the desired objectives. Some of the techniques followed in India by portfolio managers are summarized below. (1). Equity portfolioEquity portfolio is affected by internal and external factors: (a) Internal factors Pertain to the inner working of the particular company of which equity shares are held. These factors generally include: Market value of shares Book value of shares Price earnings ratio (P/E ratio) Dividend payout ratio (b) External factors Government policies Norms prescribed by institutions (3) Business environment (4) Trade cycles

(2). Equity stock analysis

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The basic objective behind the analysis is to determine the probable future value of the shares of the concerned company. It is carried out primarily fewer than two ways. : Trend of earning: A higher price-earnings ratio discount expected profit growth. Conversely, a downward trend in earning results in a low priceearnings ratio to discount anticipated decrease in profits, price and dividend. Rising EPS causes appreciation in price of shares, which benefits investors in lower tax brackets? Such investors have not pay tax or to give lower rate tax on capital gains. Many institutional investor like stability and growth and support high EPS.
Growth of EPS is diluted when a company finances internally its

expansion program and offers new stock.

EPS increase rapidly and result in higher P/E ratio when a company finances its expansion program from internal sources and borrowings without offering new stock.

Quality of reported earning: Quality of reported earnings affects P/E ratio. The factors that affect the quality of reported earnings are as under:

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 Depreciation allowances: Larger (Non Cash) deduction for depreciation provides more funds to company to finance profitable expansion schemes internally. This builds up future earning power of company.
Research and development outlets: -

There is higher P/E ratio for a company, which carries R&D programs. R&D enhances profit earning strength of the company through increased future sales.

Inventory and other non-recurring type of profit: -

Low cost inventory may be sold at higher price due to inflationary conditions among profit but such profit may not always occur and hence low P/E ratio. (C) Dividend policy: Dividend policy is significant in affecting P/E ratio. With higher dividend ratio, equity price goes up and thus raises P/E ratio. Dividend rates are raised to push in share prices up. Dividend cover is calculated to find out the time the dividend is protected, In terms of earnings. It is calculated as under: Dividend Cover = EPS / Dividend per Share (D) Investors demand: Demand from institutional investors for equity also enhances the P/E ratio.
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PORTFOLIO

MANAGEMENT

SERVICES

IN

RELIANCE

COMMERCIAL FINANCE LIMITED

PMS

Pro Prime Pro Prime Product Approach

Pro Arbitrage

Pro Tech

Investment will be keeping in mind 3 investment tenets. Consistent, steady and sustainable returns. Margin of Safety Low Volatility Product Offering Pro Prime is the ideal for investors looking at steady and superior with low and medium risk appetite. The portfolio consists of a blend of quality blue chip and growth stocks ensuring a balanced portfolio with relatively medium risk profile.

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The portfolio constitutes of relatively large capitalization stocks, based on sector and themes which have medium to long term growth potential. Product Characteristics Bottom up stock selection In depth ,independent fundamental research High quality companies with relatively large capitalization Disciplined valuation approach applying multiple valuation measure. Medium to long term vision, resulting in low portfolio turnover. How to invest? Minimum Investment : 10 Lacs Lock in : 6 months Reporting: Access to website showing clients holding .Monthly reporting of portfolio holding /transaction. Charges: 2.5% pa AMC (Annual Maintenances Charges) fees charged every quarter ,0.5% brokerage ,20% profit sharing after 15% hurdle is crossed chargeable at the end of fiscal year. Pro Arbitrage Product Approach An opportunity lies in basis which is the difference between cash and future. Whenever basis is high we buy the stocks and sell the future to lock in difference .The difference is bound to be zero at expiry.

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Product Offered Cash future arbitrage: The product intends to spot low risk opportunities which will yield more than the normal low risk product .Whenever such opportunity is spotted stocks will be bought and to lock in the basis, future will be sold .This position will be liquated in the expiry or before that if the basis vanishes early .Similarly the scheme will move on from opportunity to opportunity. Product Characteristics Low Risk: This is relatively low risk product which can be compared with liquid funds issued by mutual funds. High return: Compared with other low risk products, this products offers an indicative post tax return of 8 to 10% plus. Product Details Minimum Investment:Rs.1 Crore Lock in :6 months Reporting: Fortnightly for portfolio Net worth, Monthly reporting pf portfolio Holding /transaction. Charges: 0.035% brokerage for future ,0.07% for delivery Pro Tech Protech using the knowledge of technique analysis and the power of depravities markets to identify trading opportunities in the market .The

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protech line of the product is designed around various risk /reward /volatility profiles for the different kind of investment needs. Product Approach Better performance is possible from superior market timing and from picking stocks before inflation points in their trading cycles .Linear return are possible from having hedged/ sell market positions in downtrends .Absolute return are targeted by focusing on finding trading opportunities & not out performance of an index. Product offered 1. Nifty Thirty : Nifty futures will be bought and sold on the basis of an automated trading system generated calls to go long/short. The exposure will never exceed the value of portfolio i.e. no leveraging; but allows us to be short /hedged in Nifty in falling market therefore allowing the client to earn irrespective of the market direction. 2. Beta Portfolio : Positional trading opportunities are identified in the future segment based on technical analysis .Inflection points in the momentum cycles are identified to go long /short on stock/index futures with 1-2 months time horizon .The idea is to generate the best possible return in the medium term irrespective of the direction of the market without really leveraging beyond the portfolio value. Risk protection is done based on stop losses on daily closing prices. 3. Star Nifty:
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Swing trading technique and Dow theory is used to identify short term reversal levels for Nifty futures and ride with trend both on the long and short side .This return can be earned in bull and bear market .Stop and reverse means to reverse ones position from long to short or vice a versa at the reversal levels simultaneously .The exposure never exceeds value of portfolio i.e. there is no leveraging. 4. Trailing Stops. Momentum trading techniques are used to spot short term momentum of 5-10 days in stocks and stocks /index futures .Trailing stop loss method of risk management or profit protection is used to lower the portfolio volatility and maximize return .Trading opportunities are exposed both on the long side and the short side as the market demands to get the best of both upward and downward trends.

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Product Characteristics Using swing based index trading systems stop and reverse .trend following and momentum trading technique. Nifty based products for low impact volatility Both long and short strategies to earn returns even in falling market. Trading in future market to allow for active risk protection using trailing stop losses. How to invest? Minimum : Rs.10 Lacs Lock in : 6 months

cost and low product

Reporting: Fortnightly reporting of portfolio Net Worth, monthly reporting of portfolio Holding /Transaction.

Charges: 0% AMC (Annual Maintenance Charges), 0.05% brokerage for derivatives, 20% profit sharing on booked profit quarterly basis.

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RESEARCH METHODOLOGY
SIGNIFICANCE The main significance of the project is to understand the factors influencing the decision to invest in a company. Since, Indian stock market have been doing so well for the last many years, still majority of people make their investment in either traditional investment avenues or in schemes where there money is secure and in return what they get is a return just a couple of percentage over the rate of inflation. The main idea behind working on the project was to find out the main factors that play very vital role when a person is thinking about making investment is stocks. I took 23 variables into consideration before preparing a questionnaire for survey. There were some open and some close ended types of questions. As for as secondary data related to project is concerned, it was collected from various sources. Most part of it was collected from Net, Books, Newspapers, Magazines etc. MANAGERIAL USEFULNESS OF THE STUDY This project is very useful to analyze customer satisfaction with respect to the company they are investing into. The marketing department can use this study to enhance their marketing strategies for better sales. This report helps marketing department in taking decision to what change in distribution channels and what should be done so that marketing problem could be shorted out and how to sell their range of product in the competitive market.
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The very essence of every project related to marketing is providing a view to management for chalk out the organization. So that they can maintain a viable fit between the organization objective, skill and resource and its changing market opportunities. Also give proper shape to the company business target profit and growth. It provides a feedback to the organization about their sales, sales schemes and what impact does it has on the retailers and consumer. Every market research proves useful suggestion to the organization. Marketing research helps the firm in every component of the total marketing task. It helps the firm in every component of the total marketing task. It helps the firm acquire a better understanding of the buyer, the competition and marketing environment. It also aids the formulation of the marketing mix, product, and distribution and pricing needs marketing research supports. It also helps in taking the information of competitors strategies and their impact on the buyer. The study revels may fact that have come up during the project and these facts can either be used as opportunities in exploring and expending the business as well as can be used and safeguard against threats by the competitors to prepare an effecting marketing strategies. Every market research proves usefulness to the organization. Marketing research helps the firm in every component of the total marketing task. Its helps the firm acquire a better understanding of the consumer, the competition and the marketing environment. It also aids he formulation of marketing mix, decision on each element of marketing mix, product, distribution and promotion and pricing etc need the support of marketing research.
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OBJECTIVES OF THE STUDY

To know the concept of Portfolio Management Services. To know about the awareness in public towards stock brokers and share market. To study about the competitive position of Reliance Commercial Finance Ltd in Competitive Market. To study about the effectiveness & efficiency of Reliance Commercial Finance Ltd in relation to its competitors SCOPE OF THE STUDY

These are some of the following scope of the study: In today's complex financial environment, investors have unique needs which are derived from their risk appetite and financial goals. But regardless of this, every investor seeks to maximize his returns on investments without capital erosion. Portfolio Management Services (PMS) recognize this, and manage the investments professionally to achieve specific investment objectives, and not to forget, relieving the investors from the day to day hassles which investment require. To look out for new prospective customers who are willing to invest in PMS.
To find out the Reliance Commercial Finance Ltd, PMS services

effectiveness in the current situation.

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METHODOLOGY The methodology section is the blue print for researcher activity and specifies bow the investigator intents to study the people or describe social settings. In other words the methodology section make explicit the study desire and constitutes the how to do it phase. The project study has been conducted by collecting primary data only using structured questionnaire. No secondary data is used. I have put my best possible effort to do this research and collect the necessary information to learn about this topic thoroughly.

RESEARCH DESISGN OF THE STUDY This report is based on primary as well secondary data, however primary data collection was given more importance since it is overhearing factor in attitude studies. One of the most important users of research methodology is that it helps in identifying the problem, collecting, analyzing the required information data and providing an alternative solution to the problem .It also helps in collecting the vital information that is required by the top management to assist them for the better decision making both day to day decision and critical ones. The study consists of analysis about Investors Perception about the Portfolio Management Services offered by Reliance Commercial Finance Ltd. For the purpose of the study 100 customers were picked up at random and their views solicited on different parameters.

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The methodology adopted includes Questionnaire

Random sample survey of customers

Discussions with the concerned

SOURCES OF DATA
Primary data: Questionnaire Secondary data: Published materials of Reliance Commercial

Finance Ltd. Such as periodicals, journals, news papers, and website.

SAMPLING PLAN Sampling: Since Reliance Commercial Finance Ltd has many segments I selected Portfolio Management Services (PMS) segment as per my profile to do market research. 100% coverage was difficult within the limited period of time. Hence sampling survey method was adopted for the purpose of the study. Population: (Universe) customers & non consumers of Reliance Commercial Finance Ltd
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 Sampling size: A sample of five hundred was chosen for the purpose of the study. Sample consisted of Investor as based on their Income and Profession as well as Educational Background. Sampling Methods: Probability sampling requires complete knowledge about all sampling units in the universe. Due to time constraint non-probability sampling was chosen for the study. Sampling procedure: From large number of customers & non consumers sample lot were randomly picked up by me.

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INDUSTRY OVERVIEW
Overview of Industry as a Whole Do you know that the world's foremost marketplace New York Stock Exchange (NYSE), started its trading under a tree (now known as 68 Wall Street) over 200 years ago? Similarly, India's premier stock exchange Bombay Stock Exchange (BSE) can also trace back its origin to as far as 125 years when it started as a voluntary non-profit making association. You hear about it any time it reaches a new high or a new low, and you also hear about it daily in statements like 'The BSE Sensitive Index rose 5% today'. Obviously, stocks and stock markets are important. Stocks of public limited appears in companies are bought and sold at a stock exchange. But what really are stock exchanges? Known also as TV an organized marketplace for member
News on the stock market

different media every day. he stock market or bourse, a stock exchange is

securities

(like stocks,

bonds

options

) featured by

the centralization of supply and demand for the transaction of orders by

brokers

, for institutional and individual

investors

. The exchange

makes buying and selling easy. For example, you don't have to actually go to a stock exchange, say, BSE - you can contact a broker, who does business with the BSE, and he or she will buy or sell your stock on your behalf.

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All stock exchanges perform similar functions with respect to the listing, trading, and clearing of securities, differing only in their administrative machinery for handling these functions. Most stock exchanges are auction markets, in which prices are determined by competitive bidding. Trading may occur on a continuous auction basis, may involve brokers buying from and selling to dealers in certain types of stock, or it may be conducted through specialists dealing in a particular stock. But where did it all start? The need for stock exchanges developed out of early trading activities in agricultural and other commodities. During the middle Ages, traders found it easier to use credit that required supporting documentation of drafts, notes and bills of exchange. The history of the earliest stock exchange, the French stock exchange, may be traced back to 12th century when transactions occurred in commercial bills of exchange. The first stock exchange in India,
Bombay Stock Exchange

was established in

1875 as 'The Native Share and Stockbrokers Association' and has evolved over the years into its present status as the premier stock exchange in the country. It may be noted that BSE is the oldest stock exchange in Asia, even older than the
Tokyo Stock Exchange

, which was

founded in 1878. The country's second stock exchange was established in Ahmedabad in 1894, followed by the Calcutta Stock Exchange (CSE). CSE can also trace its origin back to 19th century. From a get together under a 'Neem Tree' way back in the 1830s, the CSE was formally established in May 1908. India's other major stock exchange National Stock Exchange (NSE), promoted by leading financial institutions, was established in April 1993. Over the
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years, several stock exchanges have been established in the major cities of India. There are now 23 recognized stock exchanges Mumbai (BSE, NSE and OTC), Calcutta, Delhi, Chennai, Ahmedabad, Bangalore, Bhubhaneswar, Coimbatore, Guwahati, Hyderabad, Jaipur, Kochi, Kanpur, Ludhiana, Mangalore, Patna, Pune, Rajkot, Vadodara, Indore and Meerut. Today, most of the global stock exchanges have become highly efficient, computerized organizations. Computerized networks also made it possible to connect to each other and have fostered the growth of an open, global securities market. Realizing there is untapped market of investors who want to be able to execute their own trades when it suits them, brokers have taken their trading rooms to the Internet. Known as online brokers, they allow you to buy and sell shares via Internet. Online Trading is a service offered on the Internet for purchase and sale of shares. In the real world, you place orders on your stockbroker either verbally (personally or telephonically) or in a written form (fax). In Online Trading, you will access a stockbroker's website through your internet-enabled PC and place orders through the broker's internet-based trading engine. These orders are routed to the Stock Exchange without manual intervention and executed thereon in a matter of a few seconds. There are 2 types of online trading service: discount brokers and full service online broker. Discount online brokers allow you to trade via Internet at reduced rates. Some provide quality research, other dont. Full service online brokerage is linked to existing brokerages. These brokers allow their clients to place online orders with the option of talking/ chatting to brokers if advice is needed. Brokerage rates here are higher.
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5Paisa.com,

ICICIDirect.com,

IndiaBulls.com,

sharekhan.com,

HDFCsec.com, Tatatdw.com, HMRstreet.com are some of the online broking sites in India. Stock Market With the backing of the World Bank group, many developing countries started giving prominence to stock markets for financing enterprises and allocation of savings. In India too, the process started in the early eighties. In the wake of increased pace of economic liberalization initiated in 1991, the Capital Issues Control Act, 1947, which till then regulated the issue and pricing of new capital, was done away with and even greater emphasis was placed on the stock market. As a part of the measures to develop the stock market and liberalization of the external sector, foreign institutional investors were invited to trade directly on the Indian stock exchanges. The main expectations were that the market would help corporate raise resources directly from investors, help attract foreign portfolio capital and facilitate the process of privatization. The entry of foreign portfolio/institutional investors (FIIs) was expected to broaden the base of the market and also help in the markets development by forcing developing country governments to follow consistent and market friendly policies. Through their expert analysis and research, FIIs were expected to help in better price discovery. Since 1991, a number of measures at improving share trading and delivery mechanisms and investor protection ranging from more periodic disclosures, takeover regulations, insider trading rules, corporate governance code, etc. have

40

been introduced by the Securities and Exchange Board of India ( SEBI), the market regulator. PARTIES INVOLVED IN SHARE TRADING 1. BOMBAY STOCK EXCHANGE (BSE)

Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage. Popularly known as "BSE", it was established as "The Native Share & Stock Brokers Association" in 1875. It is the first stock exchange in the country to obtain permanent recognition in 1956 from the Government of India under the Securities Contracts (Regulation) Act, 1956.The Exchange's pivotal and pre-eminent role in the development of the Indian capital market is widely recognized and its index, SENSEX, is tracked worldwide. Earlier an Association of Persons (AOP), the Exchange is now a demutualised and corporative entity incorporated under the provisions of the Companies Act, 1956, pursuant to the BSE (Corporatisation and Demutualization) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI). The Exchange has a nation-wide reach with a presence in 417 cities and towns of India. The systems and processes of the Exchange are designed to safeguard market integrity and enhance transparency in operations. During the year 2004-2005, the trading volumes on the Exchange showed robust growth. The Exchange provides an efficient and transparent market for trading in equity, debt instruments and derivatives. The BSE's On Line Trading
41

System (BOLT) is a proprietary system of the Exchange and is BS 77992-2002 certified. The surveillance and clearing & settlement functions of the Exchange are ISO 9001:2000 certified.
2.

NATIONAL STOCK EXCHANGE (NSE)

Capital market reforms in India have outstripped the process of liberalization in most other sectors of the economy. However, the creation of an independent capital market regulator was the initiation of this reform process. After the formation of the Securities Market regulator, the Securities and Exchange Board of India (SEBI), attention were drawn towards the inefficiencies of the bourses and the need was felt for better regulation, discipline and accountability. A Committee recommended the creation of a 2nd stock exchange in Mumbai called the "National Stock Exchange". The Committee suggested the formation of an exchange which would provide investors across the country a single, screen based trading platform, operated through a VSAT network. It was on this recommendation that setting up of NSE as a technology driven exchange was conceptualized. NSE has set up its trading system as a nation-wide, fully automated screen based trading system. It has written for itself the mandate to create a world-class exchange and use it as an instrument of change for the industry as a whole through competitive pressure. NSE was incorporated in 1992 and was given recognition as a stock exchange in April 1993. It started operations in June 1994, with trading on the Wholesale Debt Market Segment. Subsequently it launched the Capital Market Segment in November 1994
42

as a trading platform for equities and the Futures and Options Segment in June 2000 for various derivative instruments. NSE was set up with the objectives of: (a) Establishing a nationwide trading facility for all types of securities; (b) Ensuring equal access to investors all over the country through an appropriate communication network; (c) Providing a fair, efficient and transparent securities market using electronic trading system; (d) Enabling shorter settlement cycles and book entry settlements; and (e) Meeting international benchmarks and standards. NSE has been able to take the stock market to the doorsteps of the investors. The technology has been harnessed to deliver the services to the investors across the country at the cheapest possible cost. It provides a nation-wide, screen-based, automated trading system, with a high degree of transparency and equal access to investors irrespective of geographical location. The high level of information dissemination through on-line system has helped in integrating retail investors on a nation-wide basis. The standards set by the exchange in terms of market practices, products, technology and service standards have become industry benchmarks and are being replicated by other market participants. Within a very short span of time, NSE has been able to achieve all the objectives for which it was set up. It has been playing a leading role as a change agent in transforming the Indian Capital Markets to its present form. The Indian Capital Markets are a far cry from what they used to be

43

a decade ago in terms of market practices, infrastructure, technology, risk management, clearing and settlement and investor service. FUTURE OUTLOOK With increasing globalisation and consolidation amongst exchanges, the future of the regional stock exchanges, around 22 in India, is likely to be very uncertain and even their very survival is a question mark. Sebi has permitted the regional exchanges to form subsidiary companies, which are akin to super brokers. These companies have acquired membership of both BSE and NSE at confessional entry fees and permitted their members to trade on the BSE and NSE thus increasing trade volumes and business in both BSE and NSE. The stock markets of the future will have a redefined purpose and reinvented architecture due to the advent and widespread use of technology. Information and stock price quotations are available almost instantaneously and more importantly investors can act on this data by executing a trade from anywhere at any time. This new market will bring benefits to investors, listed companies, and the economies of countries. Trading will be cheaper, faster and settlement will be simpler and with reduced risk. Raising capital for companies will be easier, thus contributing directly to economic expansion. The leaders in this new world of investing will be the ones willing to be agents of change, to best meet the needs of investors and companies, and to do what is best for these two principal stakeholders in the capital markets.

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If done right, the stock markets of the future will be even better vehicles than today in helping companies grow, creating jobs, providing fair investment opportunities for people, and in improving economies. Both the exchanges, BSE and NSE, are visionary, proactive and increasingly use leading-edge technologies to effectively compete in the global environment. In the not-too-distant future, once full capital account convertibility is permitted in India one could well witness an expansion of trading volumes and its resultant economic benefits to the thriving and ever-young metropolis of Mumbai.

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COMPANY PROFILE
RELIANCE COMMERCIAL FINANCE LTD Reliance Commercial Finance aims to enable people fulfill all their ambitions by creating assets for personal & business requirements.

It offers an exhaustive suite of financial solutions Mortgages Loans, Loans against property, Loans for Commercial Vehicles, Loans for Construction Equipment, SME Loans, Auto Loans, business loans, Loans against Securities and Infrastructure Financing

Whats more, with the help of our easy-to-use loan calculator, you can decide on the tenure, interest rate and the loan amount that best suits you.

Reliance Commercial Finance has a loan book size of Rs. 13,927 crore (US$ 2.8 billion), with a customer base of over 1,01,000 customers, as on September 30, 2011, across the top 18 Indian metros.

Reliance Commercial Finance prides itself in creating customized financial solutions for our partners and customers by offering great Turnaround Time.

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RELIANCE CAPITAL HISTORY Reliance Capital Limited (RCL) was incorporated in year 1986 at Ahmedabad in Gujarat as Reliance Capital & Finance Trust Limited. The name RCL came into effect from January 5, 1995. In 2002, RCL shifted its registered office to Jamnagar in Gujarat before it finally moved to Mumbai in Maharashtra, in 2006. In 2006, Reliance Capital Ventures Limited merged with RCL and with this merger the shareholder base of RCL rose from 0.15 million shareholders to 1.3 million. RCL entered the Capital Market with a maiden public issue in 1990 and in subsequent years further tapped the capital market through rights issue and public issues. The equity shares were initially listed on the Ahmedabad Stock Exchange and The Stock Exchange Mumbai. Presently the shares are listed on The Stock Exchange Mumbai and the National Stock Exchange of India. RCL in the initial years engaged itself in steady annuity yielding businesses such as leasing, bill discounting, and inter-corporate deposits. Later, in 1993 diversified its business in the areas of portfolio investment, lending against securities, custodial services, money market operations, project finance advisory services, and investment banking.

RCL was accredited a Category 1 Merchant banker by the Securities Exchange Board of India (SEBI). It had lead managed/co-managed 15
47

issues of an aggregate value of Rs. 400 crore and had underwritten 33 issues for an aggregate value of Rs. 550 crore. All these companies were listed on various exchanges. RCL obtained its registration as a Non-banking Finance Company (NBFC) in December 1998. In view of the regulatory requirements RCL surrendered its Merchant Banking License. RCL has since diversified its activities in the areas of asset management and mutual fund; life and general insurance; consumer finance and industrial finance; stock broking; depository services; private equity and proprietary investments; exchanges, asset reconstruction; distribution of financial products and other activities in financial services. VISION "The most profitable, innovative, and most trusted financial services company in India and in the emerging markets". In achieving this vision, the company will be both customer-centric and innovation-driven.

48

TOP MANAGEMENT PROFILE Reliance Capital is anchored by a team of experienced and committed visionaries who are dedicated towards scaling the company to greater heights through innovation and excellence; thereby creating value for all our stakeholders. Amit Bapna (Chief Financial Officer, Reliance Capital) Arun Hariharan (President, Quality and Knowledge Management, Reliance Capital) K. Achuthan (Chief People Officer, Reliance Capital) K. V. Srinivasan (Chief Executive Officer, Reliance Commercial Finance) Lav Chaturvedi (Chief Risk Officer, Reliance Capital) Madhusudan Kela (Chief Investment Strategist, Reliance Capital) Malay Ghosh (Executive Director & President, Reliance Life

Insurance Company) Rajnikant Patel (President and Chief Executive Officer, Reliance Spot Exchange) Sam Ghosh (Chief Executive Officer, Reliance Capital) Sandeep Phanasgaonkar (Chief Technology Officer, Reliance Capital) Sanjay Jain (Chief Marketing Officer, Reliance Capital)
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 Sundeep Sikka (Chief Executive Officer, Reliance Capital Asset Management) Rakesh Jain Insurance) Vikrant Gugnani (Chief Executive Officer, International BusinessReliance Capital) (Executive Director, Reliance Securities Ltd) V. R. Mohan (President and Company Secretary ) BUSINESS OVERVIEW Reliance capital, a constituent of cnx nifty junior and msci india, is a part of the reliance group. It is one of india's leading and amongst most valuable financial services companies in the private sector. Reliance capital has interests in asset management and mutual funds; life and general insurance; commercial finance; equities and commodities broking; investment banking; wealth management services; distribution of financial products; exchanges; private equity; asset reconstruction; proprietary investments and other activities in financial services. Reliance mutual fund is amongst top two mutual funds in india with over seven million investor folios. Reliance life insurance and reliance general insurance are amongst the leading private sector insurers in india. Reliance securities is one of indias leading retail broking houses. Reliance money is one of indias leading distributors of financial products and services. (Chief Executive Officer, Reliance General

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Reliance capital has a net worth of rs. 7,844 crore (us$ 2 billion) and total assets of rs. 33,356 crore (us$ 7 billion) as on september 30, 2011. BALANCE SHEET Balance Sheet of ------------------- in Rs. Cr. ------------------Reliance Capital Mar '11 12 mths Sources Of Funds Total Share Capital 246.16 Equity Share 246.16 Capital Share Application 0 Money Preference Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities Share 0 6,781.53 0 7,027.69 13,646.1 1 4,836.91 18,483.0 2 25,510.7 1 Mar '11 12 mths Mar '10 12 mths 246.16 246.16 0 0 6,712.90 0 6,959.06 6,522.02 5,436.13 11,958.1 5 18,917.2 1 Mar '10 12 mths Mar '09 12 mths 246.16 246.16 0 0 6,560.28 0 6,806.44 4,937.04 8,842.49 13,779.5 3 20,585.9 7 Mar '09 12 mths Mar '08 12 mths 246.16 246.16 0 0 5,779.07 0 6,025.23 2,454.48 6,871.10 9,325.58 15,350.8 1 Mar '08 12 mths Mar '07 12 mths 246.16 246.16 0 0 4,915.07 0 5,161.23 145 1,256.36 1,401.36 6,562.59 Mar '07 12 mths

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Application Of Funds Gross Block 157.34 Less: Accum. 78.32 Depreciation Net Block Capital Work Progress Investments 79.02 in 110.03 11,166.6

211.2 125.69 85.51 82.25 10,676.0 4 0 121.23 227.09 348.32 8,722.86 165.25 9,236.43 0 1,028.12 208.27 1,236.39 8,000.04 73.37 18,917.2 1 274.06

351.63 252.69 98.94 93.79 8,746.49 0.53 81.47 74.52 156.52 11,834.7 5 0 11,991.2 7 0 213.94 239.59 453.53 11,537.7 4 109.01 20,585.9 7 389.61

336.24 231.61 104.63 17.45 4,715.39 0.82 185.21 33.76 219.79 10,578.2 0 860.15 11,658.1 4 0 917.79 227.01 1,144.80 10,513.3 4 0 15,350.8 1 38.55

298.63 214.52 84.11 14.6 2,434.34 0.82 254.15 9.8 264.77 3,819.04 165.15 4,248.96 0 110.7 108.72 219.42 4,029.54 0 6,562.59

6 Inventories 0 Sundry Debtors 16.69 Cash and Bank 833.19 Balance Total Assets Loans Current 849.88 and 13,995.4

Advances 2 Fixed Deposits 337.97 Total CA, Loans & 15,183.2 Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets 7 0 896.3 201.39 1,097.69 14,085.5 8 69.42 25,510.7 1 Contingent 1,225.77

66.46

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Liabilities Book Value (Rs)

286.11

283.31

277.1

245.29

210.12

PROFIT AND LOSS ACCOUNT Profit & Loss account ------------------of Reliance Capital ------------------Mar '11 Mar '10 12 mths Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Expenses Miscellaneous Expenses Preoperative Capitalised Total Expenses 1,840.3 9 0 1,840.3 9 46.36 0.00 1,886.7 5 0.00 0.00 109.47 0.00 12 mths 2,366.6 2 0 2,366.6 2 3.78 0.00 2,370.4 0 0.00 0.00 121.64 0.00 470.33 56.6 0 648.57
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in

Rs.

Cr. Mar '07 12 mths 873.57 0 873.57 8.64 0.00 882.21

Mar '09 12 mths 2,939.8 8 0 2,939.8 8 -9.39 0.00 2,930.4 9 0.00 0.00 149.08 0.00 356.49 89.77 0 595.34

Mar '08 12 mths 2,066.9 9 0 2,066.9 9 -70.08 0.00 1,996.9 1 0.00 0.00 157.86 0.00 135.22 106.68 0 399.76

0 0.00 45.30 0.00 22.23 30.25 0 97.78

Admin 291.32 37.22 Exp 0 438.01

Mar '11 12 mths Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax 1,402.3 8 1,448.7 4 1,263.0 2 185.72 14.33 0 171.39

Mar '10 12 mths 1,718.0 5 1,721.8 3 1,290.9 2 430.91 18.16 0 412.75 15.58 428.33 88.91 339.42 648.57 0.00 159.66 27.14

Mar '09 12 mths 2,344.5 4 2,335.1 5 1,237.8 4 1,097.3 1 21.22 0 1,076.0 9 0.93 1,077.0 2 109 968.02 595.34 0 159.66 27.14

Mar '08 12 mths 1,667.2 3 1,597.1 5 408.61 1,188.5 4 17.09 0 1,171.4 5 -3.41 1,168.0 4 146 1,025.4 5 399.76 0.00 135.10 22.94

Mar '07 12 mths 775.79 784.43 42.63 741.8 7.07 0 734.73 20.38 755.11 87 646.18 97.78 0 85.97 14.61

Extra-ordinary items 25.23 PBT (Post Extra-ord 196.62 Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend -33.23 229.27 438.01 0.00 159.66 1.57

Tax Per share data (annualised) Shares in issue (lakhs) 2,456.3 3 Earning Per Share (Rs) 9.33 Equity Dividend (%) 65

2,456.3 3 13.82 65

2,456.3 3 39.41 65

2,456.3 3 41.75 55

2,456.33 26.31 35

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BUSINESS MIX OF RELIANCE CAPITAL Asset Management Mutual Fund, Offshore Fund, Pension Fund, Portfolio Management Insurance Broking Distribution Life Insurance, General Insurance And Equities, Commodities And Derivatives, Wealth

Management Services, Portfolio Management Services, Investment Banking, Foreign Exchange And Offshore Investment, Third Party Products

Commercial Finance

Mortgages, Loans Against Property , Sme Loans, Loans For Commercial Vehicles, Loans For Construction Equipment, Auto Loans, Business Loans, Loans Against Securities, Infrastructure Financing

Other Businesses

Exchanges, Private Equity, Institutional Broking, Asset Reconstruction, Venture Capital

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COMPETITORS INFORMATION
ICICIDIRECT.COM

Products and Services A product for every need: ICICIdirect.com is the most comprehensive website, which allows you to invest in Shares, Mutual funds, Derivatives (Futures and Options) and other financial products. Simply put we offer you a product for every investment need of yours. ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an Affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank Limited Product & Services: 1. Trading in shares: ICICIdirect.com 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 or monies. Margin Trading: You can also do an intra-settlement trading upto 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. (ONLY for intraday)

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MarginPLUS Trading: Through Margin PLUS you can do an intrasettlement trading upto 25 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. Margin PLUS will give a much higher leverage in your account against your limits. Spot Trading: When you are looking at an immediate liquidity option, 'Cash on Spot' may work the best for you, On selling shares through "cash on spot", money is credited to your bank a/c the same evening & not on the exchange payout date. This money can then be withdrawn from any of the ICICI Bank ATMs. 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. CallNTrade: CallNTrade allows you to call on a local number in your city & trade on the telephone through our Customer Service Executives. This facility is currently available in over 11 major states across India. Trading on NSE/BSE: Through ICICIdirect.com, you can trade on NSE as well as BSE 2. TRADE IN DERIVATIVES: FUTURES Through ICICIdirect.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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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 To take the buy/sell position on index/stock options, you have to place certain % 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. 3. Mutual Funds: 4. IPOs and Bonds Online: 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 to hit 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.

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INDIA BULLS

Indiabulls Group is one of the top business houses in the country with business interests in Real Estate, Infrastructure, Financial Services, Retail, Multiplex and Power sectors. Indiabulls Group companies are listed in Indian and overseas markets and have a market capitalization of over USD 7 billion. The Networth of the Group exceeds USD 2.5 billion. Indiabulls Group companies enjoy highest ratings from CRISIL, a subsidiary of Standard and Poors. Indiabulls has been conferred the status of a Business Superbrand by The Brand Council, Superbrands India. Indiabulls Financial Services is an integrated financial services powerhouse providing Consumer Finance, Housing Finance, Commercial Loans, Life Insurance, Asset Management and Advisory services. Indiabulls Financial Services Ltd is amongst 68 companies constituting MSCI - Morgan Stanley India Index. Indiabulls Financial is also part of CLSAs model portfolio of 30 Best Companies in Asia. Indiabulls Financial Services signed a joint venture agreement with Sogecap, the insurance arm of Societ Generale (SocGen) for its upcoming life insurance venture. Indiabulls Financial Services in partnership with MMTC Limited, the largest commodity trading company in India, is setting up Indias 4th Multi-Commodities Exchange. Indiabulls Real Estate Limited is Indias third largest property company with development projects spread across residential projects, commercial

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offices, hotels, malls, and Special Economic Zones (SEZs) infrastructure development. Indiabulls Real Estate partnered with Farallon Capital Management LLC of USA to bring the first FDI into real estate. Indiabulls Real Estate is transforming 14 million sqft in 16 cities into premium quality, high-end commercial, residential and retail spaces. Indiabulls Real Estate has diversified significantly in the following three business verticals within the real estate space: Real Estate Development, Project Advisory & Facilities Management: Residential, Commercial (Office and Malls) and SEZ Development. Power: Thermal and Hydro Power Generation. Retail: Departmental Stores, Hypermarket Stores, Daily Needs Neighborhood Stores. Indiabulls Securities Limited is Indias leading capital markets company with All-India Presence and an extensive client base. Indiabulls Securities possesses state of the art trading platform, best broking practices and is the pioneer in trading product innovations. Power Indiabulls, in-house trading platform, is one of the fastest and most efficient trading platforms in the country. Indiabulls Securities Limited is the first and only brokerage house to be assigned the highest rating BQ 1 by CRISIL.

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ABHIPRA

Beginning as a Broking House, we grew into Business House. We broadened our horizons and stepped into the field of Depository, Stock Broking, Full-Fledged Money Changing Services, Category I Registrar & Transfer Agent, Commodity Trading, Online Trading (Equity, F&O & Commodity), e-Return Intermediary. Abhipra today commands the status of being one of the leading Depository Participant of Northern India in Private Sector. Moreover, Abhipra has Trading Terminal Outlets for NSE & BSE spread to almost every nook & corner of Northern India. Abhipra Capital Limited is also empanelled as a Depository Participant with one of the premier Commodity bourse, National Commodities and Derivatives Exchange Limited (NCDEX). So a client now can open Commodity Demat Account with us At Abhipra, we offer our clients far more than merely a comprehensive range of financial services. We offer them ideas, innovations, and solutions with extra-ordinary results. We feel that quality is an essential ingredient in building successful businesses. Not only do products and services need to be of high quality, but potential customers also need to have assurance that the products will be of high quality. This is evidenced from the fact that Abhipra is a ISO 9001 (Quality Assurance Systems) Registered Company.

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Abhipra group has been promoted and governed by the high entrepreneurial and charismatic endeavors of its Chairman Mr. V.D. Aggarwal, Chartered Accountant, with a standing of 27 years. His acumen backed by his foresight and vision has made Abhipra as one of the leading groups among the competitors in the Capital Market. Mr. V.D. Aggarwal enjoys the honor of being The President of Depository Participants Association of India (DPAI) and also President of Chamber of Chartered Accountants of India (CCA). He is also former President of Association NSE Members of India. Abhipra is a progressive, computerized and professionally managed organization which takes pride in offering value-added services to its clients. Abhipra's range of professional financial services cover Depository Futures Capital Commodity FOREX Tours SEBI Approved Investment e-Return Intermediary & R & Trading Services & MarketTrading (NMCE, (RBI Travels T (Cat I) Arranger (NSE, (NSDL, CDS) Options BSE) Approved) NCDEX,MCX)

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KOTAK SECURITIES

Kotak Securities Limited, a subsidiary of Kotak Mahindra Bank, is the stock broking and distribution arm of the Kotak Mahindra Group. Kotak Mahindra is one of India's leading financial institutions, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporate. Kotak Securities was set up in 1994. Kotak Securities is a corporate member of both The Bombay Stock Exchange and the National Stock Exchange of India Limited. The company has four main areas of business: Institutional Equities, Retail (equities and other financial products), Portfolio Management and Depository Services.

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MOTILAL OSWAL

Motilal Oswal Securities Ltd. was founded in 1987 as a small subbroking unit, with just two people running the show. It has established itself as the Best Local Brokerage House in India (Asia Money Brokers Poll 2005). Their Institutional Equity Division combines the efforts of the Research and Sales & Trading departments to best serve clients' needs. Consistent delivery of high quality advice on individual stocks, sector trends and investment strategy has established them as a reliable research unit amongst leading Indian as well as international investors.

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PRIMARY FINDINGS AND ANALYSIS

1. Do you know about the Investment Option available?

Interpretation As the above table shows the knowledge of Investor out of 100 respondent carried throughout the Delhi Area is only 85%. The remaining 15% take his/her residential property as an investment. According to law purpose this is not an investment because of it is not create any profit for the owner. The main problem is that in this time from year 2008-2009 , the recession and the Inflation make the investor think before investing a even a Rs. 100.So , it also create the problem for the Investor to not take interest in Investment option.

65

2.

What is the basic purpose of your Investments?

Interpretation As with the above analysis, it is found 75% people are interested in liquidity, returns and tax benefits. And remaining 25% are interested in capital appreciations, risk covering, and others. In the entire respondent it is common that this time everyone is looking for minimizing the risk and maximizing their profit with the short time of period. As explaining them About the Portfolio Management Services of Reliance Commercial Finance Ltd, they were quite interested in Protech Services.

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3.

What is the most important factor you consider at the time of Investment?

Interpretation As the above analysis gives the clear idea that most of the Investors considered the market factor as around 12% for Risk and 23% Return, but most important common things in all are that they are even ready for taking both Risk and Return in around 65% investor. Moreover, the Market is fluctuating now days, so as it also getting improvement. So, Investor are looking for Investment in long term and Short-term.

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4.

From which option you will get the best returns?

Interpretation Most of the respondents say they will get more returns in Share Market. Since Share Market is said to be the best place to invest to get more returns. The risk in the investment is also high. Similarly, the Investor are more Interested in Investing their money in Mutual Fund Schemes as that is also very important financial product due to its nature of minimizing risk and maximizing the profit. As the commodities market is doing well from last few months so Investor also prefer to invest their money in Commodities Market basically in GOLD nowadays. Moreover, even who dont want to take Risk they are looking for investing in Fixed Deposit for long period of time.

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5.

Investing in PMS is far safer than Investing in Mutual Fund. Do you agree?

Interpretation In the above graphs its clear that 24% of respondent out of hundred feel that investing their money in Mutual Fund Scheme are far safer than Investing in PMS. this is because of lack of proper information about the Portfolio management services. As the basis is same for the mutual fund and PMS but the investment pattern is totally different from each other and which depends upon different risk factor available in both the Financial Products.

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6.

How much you carry the expectation in Rise of your Income from Investments?

Interpretation The optimism is shown in the attitude of the respondents. The confidence was appreciable with which they are looking forward to a rise in their investments. Major part of the sample feels that the rise would be of around 15%. Only 8% of the respondents were confident enough to expect a rise of upto 35%. As all the respondents were considering the Risk factor also before filling the questionnaire and they were asking about the performance report of all the PMS services offered by Reliance Commercial Finance Ltd.

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7.

If you invested in Share Market, what has been your experience?

Interpretation 20% of the respondents have invested in Share market and received satisfactory returns, 40% of the respondents have not at all invested in Share Market. Some of the investors face problems due to less knowledge about the market. Some of the respondents dont have complete overview of the happenings and invest their money in wrong shares which result in Loss. This is the reason most of the respondents prefer Portfolio Management Services to trade now a days, which gives the Investor the clear idea when is the right time to buy and right time to sell the shares which is recommended by their Fund Manger.

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8.

How do you trade in Share Market?

Interpretation As we know that Share market is totally based on psychological parameters of Investors, which changed as per the market condition, but at the same time the around 45% investor trade on the basis of speculation and 31% depend upon Investment option Bonds, Mutual Funds etc. Moreover, the now a days Hedging is most common derivatives tools which is used by the Investor to get more return from the Market ,this is mostly used in the Commodities Market.

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9. How do you manage your Portfolio?

Interpretation About 57% of the respondents say they themselves manage their portfolio and 43% of the respondents say they depends on the security company for portfolio Management. 43% of the respondents prefer PMS of the company because they dont have to keep a close eye on their investment; they get all the information time to time from their Fund Manager. Moreover, talking about the Reliance Commercial Finance Ltd services they are far satisfied with the Protech and Prop rime Performance during last year. They are satisfied with the quick and active services of Reliance Commercial Finance Ltd customer services where, they get the updated knowledge about the scrip detail everyday from their Fund Manager.

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10. If you trade with Reliance Commercial Finance Ltd then why?

Interpretation As the above research shows the reasons and the parameters on which investor lie on Reliance Commercial Finance Ltd and they do the trade. Among hundred respondents 35% respondents do the trade with the company due to its research Report, 28% based on Brokerage Rate whereas 22 % are happy with its Services. Last but not the least, 15% respondents are depends upon the tips of Reliance Commercial Finance Ltd which gives them idea where to invest and when to invest.

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At the time of research what I found is that still Reliance Commercial Finance Ltd need to make the clients more knowledge about their PMS product.

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11.

Are you using Portfolio Management services (PMS) of Reliance Commercial Finance Ltd?

Interpretation As talking about the Investment option, in most of clients it was common that they know about the Option but as the PMS of Reliance Commercial Finance Ltd have different Product offering, Product Characteristics and the Investment amount is also different this makes the clients to think differently. It is found that 56% of Reliance Commercial Finance Ltd client where using PMS services as for their Investment Option.

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12.

Which Portfolio Type you preferred?

Interpretation The above analysis shows, in which portfolio the investor like to deal more in PMS. As 45% investor likes to go for Equity Portfolio and 28% with Balanced Portfolio, whereas around 27% investor like to, go for Debt Portfolio.

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13.

How was your experience about Portfolio Management services (PMS) of Reliance Commercial Finance Ltd Limited?

Interpretation In the above analysis it is clear that the Investor have the good and the bad experience both with the SCM PMS services. In this current scenario 52% of the Investor earned, whereas around 18% have to suffer losses in the market. Similarly 30% of the Respondents are there in Breakeven Point (BEP), where no loss and no profit.

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14.

Does Reliance Commercial Finance Ltd Limited keep it PMS

process Transparent?

Interpretation The above analysis is talking about the Reliance Commercial Finance Ltd Transparency of their PMS services. In hundred respondents 63% said that they get all the information about their scrip buying and selling information day by day, where as 37% of respondents are not satisfied with the PMS information and Transparency because they dont get any type of extra services in PMS as they were saying.

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15.

Do you recommend Reliance Commercial Finance Ltd PMS to

others?

Interpretation The above analysis shows the Investor perception toward the Reliance Commercial Finance Ltd PMS as on the basis of their good and bad experience with Reliance Commercial Finance Ltd limited. Among hundred respondents 86% respondents were agree to recommend the PMS of Reliance Commercial Finance Ltd to their peers, relatives etc.

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AN ASSESSMENT OF THE INTERNSHIP

1. What skills and qualifications you think that you have gained from the internship? I gained skills in project management, dealing with ambiguity, and adapting to different philosophies. 2. What kind of responsibilities you have undertaken during the internship period? In external consulting organizations I spend the majority of their time analyzing data, conducting validation studies, writing reports, developing training courses and/or selection assessments, and directing client contact (e.g., conduct focus groups) while in internal consulting organizations conduct job analyses, analyze data, manage projects, collect data, write reports, and develop selection assessments. While there is some overlap in the most frequent tasks, the differences are notable.

3. How do you think the internship will influence your future career plans? Internships are more than a learning experience they help emerging talent look into the future. I can find an internship that fits their schedule class, life and work. From the very short-term to year-round, full-time positions, internships are a great way to learn about different industries and roles, and augment your income through compensation.

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4. How do you think the internship activities that you carried out are correlated with your classroom knowledge? I have been taught almost the similar things that what we have listens in our classroom. So, the knowledge is everywhere, you just have to grab it.

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FINDINGS & RECOMMENDATIONS

FINDINGS About 85% Respondents knows about the Investment Option, because remaining 15% take his /her residential property as Investment, but in actual it not an investment philosophy carries that all the Investment does not create any profit for the owner. More than 75% Investors are investing their money for Liquidity, Return and Tax benefits. At the time of Investment the Investors basically considered the both Risk and Return in more %age around 65%. As among all Investment Option for Investor the most important area to get more return is share around 22%after that Mutual Fund and other comes into existence. More than 76% of Investors feels that PMS is less risky than investing money in Mutual Funds. As expected return from the Market more than 48% respondents expect the rise in Income more than 15%, 32% respondents are expecting between 15-25% return. As the experience from the Market more than 34% Investor had lose their money during the concerned year, whereas 20% respondents have got satisfied return.

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 About 45% respondents do the Trade in the Market with Derivatives Tools Speculation compare to 24% through Hedging .And the rest 31% trade their money in Investments.

Around 57% residents manage their Portfolio through the different company whereas 43%Investor manage their portfolio themselves.

The most important reasons for doing trade with Reliance Commercial Structure. Finance Ltd is RELIANCE COMMERCIAL FINANCE LTD Research Department than its Brokerage rate

Out of hundred respondents 56% respondents are using Reliance Commercial Finance Ltd PMS services.

Investors preferred more than 45% equity Portfolio, 28%Balanceed Portfolio and about 27% Debt Portfolio with Reliance Commercial Finance Ltd PMS.

About 52% Respondents earned through Reliance Commercial Finance Ltd PMS product, whereas 18% investor faced loses also.

More than 63% Investor are happy with the Transparency system of Reliance Commercial Finance Ltd.

As based on the good and bad experience with Reliance Commercial Finance Ltd around 86% are ready to recommended the PMS of RELIANCE COMMERCIAL FINANCE LTD to their peers, relatives etc.

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RECOMMENDATIONS The company should also organize seminars and similar activities to enhance the knowledge of prospective and existing customers, so that they feel more comfortable while investing in the stock market. Investors must feel safe about their money invested. Investors accounts must be more transparent as compared to other companies.

Reliance Commercial Finance Ltd must try to promote more its Portfolio Management Services through Advertisements. Reliance Commercial Finance Ltd needs to improve more its Customer Services

There is need to change in lock in period in all three PMS i.e.Protech, Proprime, Pro Arbitrage.

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CONCLUSION
On the basis of the study it is found that Reliance Commercial Finance Ltd is better services provider than the other stockbrokers because of their timely research and personalized advice on what stocks to buy and sell. Reliance Commercial Finance Ltd provides the facility of Trade tiger as well as relationship manager facility for encouragement and protects the interest of the investors. It also provides the information through the internet and mobile alerts that what IPOs are coming in the market and it also provides its research on the future prospect of the IPO. We can conclude the following with above analysis.

Reliance

Commercial

Finance

Ltd

has

better

Portfolio

Management services than Other Companies It keeps its process more transparent. It gives more returns to its investors. It charges are less than other portfolio Management Services It provides daily updates about the stocks information. Investors are looking for those investment options where they get maximum returns with less returns. Market is becoming complex & it means that the individual investor will not have the time to play stock game on his own. People are not so much ware aware about the Investment option available in the Market.

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ANNEXURE
QUESTIONNAIRE NAME: OCCUPATION: a. YES b. NO 2. What is the basic purpose of your Investments? a. Liquidity b. Return c. Tax Benefits d. Risk Covering e. Capital Appreciation f. Others 3. What is the most important factor you consider at the time of Investment? a. Risk b. Return c. Both 4. From which option you will get the best returns? a. Mutual Funds AGE: PHONE NO:

1. Do you know about the Investments Option available?

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b. Shares c. Commodities Market d. Bonds e. Fixed Deposits f. Property g. Others 5. Investing in PMS is far safer than Investing in Mutual Fund. Do you agree? a. Yes b. No 6. How much you carry the expectation in Rise of your Income from Investments? a. Upto 15% b. 15-25% c. 25-35% d. More than 35% 7. If you invested in Share Market, what has been your experience? a. Satisfactory Return b. Burned Finger c. Unsatisfactory Results d. No
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8. How do you trade in Share Market? a. Hedging b. Speculation c. Investment 9. How do you manage your Portfolio? a. Self b. Depends on the company for portfolio
10. If, you trade with Reliance Commercial Finance Ltd then why?

a. Research b. Brokerage c. Services d. Investments Tips

11. Are you using Portfolio Management services (PMS) of

Reliance Commercial Finance Ltd? a. Yes b. No 12.Which Portfolio Type you preferred? a. Equity b. Debt c. Balanced
13. How was your experience about Portfolio Management

services (PMS) of Reliance Commercial Finance Ltd? a. Earned

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b. Faced Loss c. No profit No loss

14. Does Reliance Commercial Finance Ltd keep it PMS process

Transparent? a. Yes b. No
15. Do you recommend Reliance Commercial Finance Ltd to

others? a. Yes b. No

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BIBLIOGRAPHY
BOOKS/MAGAZINES REFFERED: BOOKS Financial Management - Jae K. Shim, Joel G. Siegel

Fundamentals of financial management - Eugene F. Brigham, Joel F. Houston

MAGAZINE: Business World

WEBSITES:

www.google.com www.moneycontrol.com www.karvy.com www.yahoofinance.com www.nseindia.com www.bseindia.com www.RelianceCommercialFinance Ltd.com www.5paisa.com www.hdfc.com

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