Summer Training Project

TITLE- A Study on Customer Satisfaction in Religare Securities Limited

Under the Guidance of : By: Ms. Harleen Mahajan Singh (Faculty, PCTE)

Presented Amrinder MBA- 2A

Introduction to Brokerage Industry

The Indian Brokerage Industry consists of companies that

primarily act as agents for the buying and selling of

securities (e.g. stocks, shares, and similar financial instruments) on a commission or transaction fee basis.

Security segments:

market

has

two

main

interdependent

Primary Market Secondary Market

Evolution of Indian Brokerage Market

The Indian broking industry is one of the oldest trading industries that had been around even before the establishment of the BSE in 1875.

The equity brokerage industry in India is one of the oldest in the Asia region.

The roots of a stock market in India began in the 1860s

during the American Civil War that led to a sudden surge in

the demand for cotton from India resulting in setting up of a number of joint stock companies that issued securities to raise finance.

Key players in brokerage industry

India Infoline

ICICI Direct
Angel Broking Geojit Paribas HDFC Securities Kotak Securities

Reliance Money
Religare

Contd

Share Khan

SBI Demat
Motilal Oswal Anand Rathi Citi Bank Demat Karvy securities HSBC Invest Direct

Top 10 Stock brokers in India

1. ICICI direct.com 2. India Infoline 3. Kotak Securities Ltd. 4. Share Khan 5. Indiabulls 6. Motilal Oswal 7. Bajaj Capital 8. SMC 9. Angel Broking 10. Reliance Money
Source-http://nsetradingsecrets.blogspot.com/

Religare Enterprise Limited

Religare Enterprises Limited (REL) is a global financial services group promoted by the Ranbaxy group.

The company was originally incorporated as Vajreshwari Cosmetics Private Limited on January 30, 1984.

The status of the Company was changed to a public limited company by a special resolution of the members dated July 14,

2006.

ISO 9001:2000 certified company.

Vision & Mission

Vision
To build Religare as a globally trusted brand in the financial services domain.

Mission
Providing integrated financial care driven by the relationship of trust and confidence.

Logo

Companies Under Religare Enterprise Limited

Religare Securites Limited

Religare Securities Limited (RSL), a 100% subsidiary

of Religare Enterprises Limited is a leading equity and

securities firm in India

The major activities and offerings of the company today are Equity Broking, Depository Participant Services and Research Services Religare has a very credible Research and Analysis division, which not only caters to the need of our Institutional clientele, but also gives their valuable inputs to investment dealers.

Organisation Structure

OFFERINGS
Trade in Equities Depository Services Commodity Trading Currency Futures

SWOT Analysis

3.5 SWOT Analysis Of Religare Securities Ltd.

Strength

It is a Ranbaxy promoter Group Company.

Equity Research Team, one of the best in market,

which constantly track the pulse of the market and provide timely investment advice free of cost.

Weakness

Lack of sufficient

branch-offices

for speedy

delivery of services.

Lack of awareness among customers because of nonaggressive promotional strategies (print

media, newspapers, etc).

Lesser emphasis on customer retention.

Opportunities

Can easily tap the retail investors with small

saving through promotional channels like print

media, electronic media, etc.

More and more small investors are entering into Share Market.

Threats

Aggressive promotional strategies by close

competitors may hamper Religares acceptance by

new clients.

More and more players are venturing into this domain.

Current Ratio
(In crores)
2008 Current Assets Current Liabilities Current Ratio 21.42 10.57 2.03 2009 496.81 5.10 97.41 2010 87.16 178.86 .48

Quick Ratio
CRORES)

(IN

2008 Quick Assets Current Liabilities Quick Ratio

2009

2010 87.16

21.4 496.81 10.57 2.03

5.10 178.86 97.41 0.48

Absolute Liquid Ratio

CRORES)

(IN

2008 Absolute liquid Assets Current Liabilities Absolute liquid Ratio 10.57 0.17 1.77

2009 473.2

2010 28.35

5.10 178.86 92.78 0.16

Debt-Equity Ratio
CRORES)

(IN

2008 Long Term Debt Shareholders Fund Debt- Equity Ratio .15 75.4

2009 00

2010 22.22

481.32 2518.64 2561.06

00

.01

Gross Margin Ratio

CRORES)

(IN

2008 2009 2010 Gross Profit Net Sales Gross Profit Ratio 27.29 3.84 56.17

31.85 12.55 101.59 85.68 30.59 55.29

Net Profit Margin Ratio

CRORES)

(IN

2008 Net Profit Before Tax Net Sales Net Profit Ratio 31.85 73.18 23.31

2009 -10.04

2010 68.32

12.55 -80.00

101.59 67.25

Return on Total Assets

CRORES)

(IN

2008 Net Profit Before Interest and Tax Total Assets Return on Total Assets Ratio 27.35

2009 11.00

2010 90.27

556.71 2518.64 2583.28 0.05 0.004 0.035

Trend Analysis of Income

Years 2006-07 2007-08 2008-09 2009-10 Income 153831768 319033984 274448308 1356955116 Percentage 100 207.39 178.41 882.10

Contd.
1000 900 800 700 600 500 400 300 200 100 0 2006-07 2007-08 Years 2008-09 2009-10

Trend Value of Income

Trend Analysis of Expenditure

Years 2006-07 2007-08 2008-09 2009-10 Expenditure 27108838 85958102 374294431 673763411 Percentage 100 317.09 1380.71 2485.40

Contd
3000

Trend Value of Expenditure

2500 2000 1500 1000 500 0 2006-07 2007-08 Years 2008-09 2009-10

Trend Analysis of Profit After Tax

600 500

Years 2006-07 2007-08 2008-09

2006-07

PAT 112011616 234482528 (159597780)

Percentage 100 209.34 (142.48) 495.63 2008-09

2009-10

Trend Value of PAT

400 300 200 100 0 -100 -200

2009-10 2007-08 555164159

Years

Trend Analysis of Earning Per Share (EPS)

Years 2006-07 2007-08 2008-09 2009-10 E.P.S 2.09 3.39 (2.27) 6.27 Percentage 100 162.20 (108.61) 300

Contd
350 300 250

Trend Value of E.P.S

200 150 100 50 0 -50 -100 -150 Years 2006-07 2007-08 2008-09 2009-10

TITLE
A STUDY ON CUSTOMER SATISFACTION
IN RELIGARE SECURITIES LIMITED

Objectives of the Study

To analyse the factors affecting customer satisfaction towards their broking firm. To understand the customer expectations from their stock broking firm. To study the problems faced by RSL customers.

Research methodology
Research methodology is a way to systematically solve the research problems. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with logic behind them.

Research Design : Descriptive Design Method of Data collection : Primary Data Secondary Data Sample Design : Universe Population Sample Size Sampling Unit Sampling Technique

Limitations of the Study

Time Constraint. Sample Size is too small.

Data Provided can be Biased.

Postal Survey.

Data Analysis and Interpretation

4.1 Frequency of Investment.

N=100
70 60 50 62

Percentage

40 30 20 10 0 Daily Weekly Frequency Monthly Yearly 13 3 22

4.2 Amount Invested.

4.3 Factors responsible for selection of Religare.

N=100

Figure - 4.5

4.4 Satisfaction Level.

4.5 Ranking of the Services.

4.6 Ranking of the Expected Facilities.

4.7 Distribution of the respondents according to level of Experiencing Time Lag while placing an order.
Mean=1.13 N=100
80
No. of Respondent and Mean

70

70 60 50 40 30 20 10 0 -10 Not at all Very few Average -2 -2 Often Always 18 0 0 0 35 45 45 Mean *No. of respondents Mean score

Time Lag

. 4.8 To determine whether respondents faced any problem in after sale services.
N=100

4.9 Various kind of problems faced by the Respondents.

N=100

4.10 Reference of the Share Broker to Friend or Other Acquaintances.

FINDINGS

It was found from the analysis that (62%) of the customers are interested to invest their saving in the stock market on daily basis. It was found from the analysis that maximum (33%) of the respondents have invested their savings more than Rs 1,00,000 for share trading.

It was found from the analysis that (30%) made the selection of their stock broker on basis of its credit worthiness and trust while (28%) made their choice due to qualitative services provided by this broking house especially the amount of commission charged by the share broker for their services.

It was found that maximum number of respondent are expecting main

services of Putting orders without delay, Trading time advice/guidance and Facility to see the margin amount and traded shares at the end of the day from their share broker.

Contd

It was found from the analysis that majority of the respondents

i.e. (79%) have not faced any problem in after sales services
from their stock broker and are satisfied with services. However findings revealed that majority of the customers are finding problems related to the hidden charges charged by the company and want an immediate remedial solution.

It was evident from the analysis that a quite significant number of the respondents are satisfied with services, are not experiencing any time lag while placing an order and will refer their stock broking house to their friends and other

acquaintances.

Suggestions

Most of the investors are not aware of the hidden charges (taxes, stamp duty) charged by the Company. The charges (brokerage and taxes) need to be revealed to the investors.

There is a need to improve services of proper response from the dealers, putting the orders without delay, Trading time advice/guidance and provide proper exposure to their clients.

A method should be established to award the employees who provide maximum profits to their clients.

Try to reduce cost, so that benefits can be passed on to customers.