UNIVERSITY OF MUMBAI

PROJECT REPORT ON

“Relationship Marketing” in Capital Market

SUBMITTED BY:-

RAJ KUMAR GUPTA

PROJECT GUIDE:-

MR. ANURAG SRIVASTAVA

MASTER OF MANAGEMENT STUDIES

III – SEMESTER

2010-11

DILKAP RESEARCH CENTRE AND INSTITUTE OF MANAGEMENT

STUDIES,

AT-MAMDAPUR, NERAL

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 ACKNOWLEDGEMENT

I would like to express my Acknowledgement to those people, without whose

contribution, Support and guidance this Report would not have seen the light of the
day. Notable among them are Mr. Anurag kumar srivastava (Branch Manager )
who was my Project Guide and who helped me in a lot. I am also thankful to all other
employees of Religare who guide me during my Project. I am also thankful and
would like to express my Gratitude to the entire Institute for giving me a Platform to
have this wonderful opportunity and being able to get a glimpse of the Corporate
World
I am also thankful to Mr. Prassana mishra for there constant Support and valuable
suggestion.

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 PREFACE

As a part of M.M.S. program, student has to pursue a project duly approved by

the faculty of the concerned area. I had the privilege of under taking the project
on “relationship marketing in capital market” in religare securities limited.
Main aim of the project is to study how to build the long term relationship with
the customer in the capital market.

My project work is divided in to following which are as under:

1. Objective

2. Executive summary

3. Product detail

4. Relationship marketing

5. Methodology

6. Data analysis & interpretation

7. Finding & recommendations

8. Conclusion

9. Bibliography

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 DECLARATION

I RAJ KUMAR GUPTA student of,DILKAP RESEARCH CENTER AND

INSTITUTE OF MANAGEMENT STUDIES,RAIGAD hereby declare that
“relationship marketing in capital market” submitted by me in partial
fulfillment of my summer traning program, is my original work and that it has
not previously formed the basis for reward of any other degree ,diploma
fellowship or any other titles.

Place: candidate signature:

Date:

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 CONTENTS

TOPIC PAGE NO
1. EXECUTIVE SUMMARY 6

2. INTRODUCTION 7
INDUSTRY PROFILE
COMPANY PROFILE
ORGANISATION STRUCTURE

3. OBJECTIVES 12

4. METHODOLOGY 13

5. PRODUCT DETAILS 16
STOCK TRADING
DEPOSITARY SERVICE
MARGINAL FINANCING
MUTUAL FUND
COMMODITY TRADING

6. RELATIONSHIP MARKETING 26

7. SWOT ANALYSIS 32

8. DATA ANALYSIS & INTERPRETATION 37

9. FINDINGS 65

10.LIMITATION OF STUDY 66

11. CONCLUSION & RECOMMENDATION 67

12. ANNEXURE 69

13.BIBLIOGRAPHY 72

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EXECUTIVE SUMMARY
The Present business scenario is totally consumer oriented. Every company faces stiff
competition from its competitors, each provides the best product at competitive rates. As a result
customers have lot of choices to get the best with the least cost. To face this competition, it is very
important to know customer’s behavior, there needs, preference and also the motivation factors. My
Project was on “Relationship Marketing of Financial Products” Dealing in the financial product
with in varanasi. To know the Motivational & demotivational factors of the client so as to cater the
needs in most appropriate manner.It will help business to expand its network & also its services.I
had done my project under the guidance of My Guide Mr. Anurag srivastava whose guidance helps
me in completing my Project Work Successfully.
Religare Securities Limited Provide its Expert service in Capital market Operations to
institutional Investors. Company is a Member of National Stock Exchange as well as Bombay
Stock Exchange. Religare is slowly but steadily gaining market share and goodwill in the Market.
Its strategies for marketing its services as well as developing a good Relationship Marketing with
its client has given an edge over the other service providers. Religare is on expansion path and is
looking forward to be in the top. Religare is a very flexible organization and its gives equal
opportunity to its young and energetic staff to work so as to bring this organization among the top.
This project also throws lights on the working frame of broking service. This industry is on the
spree to adopt the latest technology and thus any player has to be dynamic in this industry. The
comparative analysis done in this project show how Religare has built competitive edge on some
ground. The Project help you understand the strategies of this industry right from De-Mat
toTrading, Margin to analysis and risk to return. I hope this project prove to be beneficial for the
Company and also give the reader a through idea about the industry. I learnt a lot through out the
process of undertaking this project report.To fulfill my task I had to visit the client personally who
are dealing in share trading with this company or some other broking house.For this project I was
assign the target of 10 accounts, for which I first generated the database and made appointment with
them and convert them in as traders of Religare Securities Limited,for this I have to convince them
and explain the concept and collect the Trading Form and a cheque of Rs. 500 only. After going
through the exercise I found that RSL is one of the upcoming companies in the Marketing of
financial Product, as the credibility of other companies are going down in the market and it is the
right time for the RSL to built its reputation in the market The Main reason for RSL low market
share is because of local brokers in the market which a charging very less Margin as initial
investment for Trading in Stock Market. But No doubt it is having lots of scope to grow in the
financial Market, and I wish it is having a shining future in the coming years.

ABOUT RELIGARE SECURITIES:

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INTRODUCTION

Religare is driven by ethical and dynamic process for wealth creation. Based on this, the company
started its Endeavour in the financial market.

Religare Enterprises Limited (A Ranbaxy Promoter Group Company)

Through Religare Securities Limited, Religare Finvest Limited, Religare Comdex Limited and
Religare Insurance Advisory Services Limited provides integrated Financial solutions to its
corporate, retail and wealth management clients.
Religare is proud of being a truly professional financial service provider managed by a highly
skilled team, who have proven track record in their respective domains.
Religare operations are managed by more than 1500 highly skilled professionals who subscribe to
Religare philosophy and are spread across its country wide branches. Today, we have a growing
network of 150 branches and more than 300 business partners spread across 180 cities in India and
a fully operational International office at London However, our target is to have 400 branches and
1000 business
partners in 300 cities of India and more than 8 International offices by the end of 2007.
Unlike a traditional broking firm, Religare group works on the philosophy of partnering for wealth
creation. We not only execute trades for our clients but also provide them critical and timely
investment advice. The growing list of financial institutions with which Religare is empanelled as
an approved broker is a reflection of the high level service standard maintained by the company.
Religare has a very credible team research & Analysis division, which not only caters to the need
of our institutional client but also gives there valuable input to investment dealers. Religare is
among the capital market fraternity and the most vibrant place in terms of information and every
day it is consolidating its efforts to provide more customized services to its clients.
Religare in recent past has been constantly innovating in terms of the product & services which it
offers, and in this respect it has started a premium NRI, HNIs & corporate servicing group. This
group specifically caters to the growing investment needs of these premium clients categories by
taking all there portfolio investment decisions depending upon there risk / returns parameter.
.
RELIGARE SECURITIES LIMITED

Religare Group of Companies:

Religare Enterprises Limited group comprises of Religare Securities Limited, Religare Comdex
Limited, Religare Finvest Limited and Religare Insurance Advisory Limited which deal inequity,
commodity and financial services business.
RSL is one of the leading broking houses of India and are dealing into Equity Broking,
Depository Services, Portfolio Management Services, Institutional Equity Brokerage &
Research, Investment Banking and Corporate Finance

Extension of services has been a constant feature in Religare to regard the needs of our
clients. Consequently, company is soon going to launch Internet Trading and Merchant Banking.
This would take care of different investment needs of different classes of investors To facilitate free
7
and fare trading process Religare is a member of major financial institutions like, National Stock
Exchange of India, Bombay Stock Exchange of India, Depository Participant with National
Securities Depository Limited and Central Depository Services (I)Limited, and a SEBI approved
Portfolio Manager
RSL serves a platform to all segments of investors to avail the opportunities offered by investingin
Indian equities either on their own or through managed funds in Portfolio Management.

Religare Comdex Limited:

Religare is a member of NCDEX and MCX and provides platform for trading in commodities,
which is an online facility also.RCL provides platform to both agro and non-agro commodity
traders to derive the actual price of the commodity and also to trade and hedge actively in the
growing commodity trading market in India.
With this realization, Religare Comdex is coming up with its branches at 42 mandi locations. It is a
flagship effort from our team which would be helpful in facilitating trade and speculating price of
commodities in future.

Religare Finvest:

Religare Finvest Limited (RFL), a Non Banking Finance Company (NBFC) is aggressively making
a name in the financial services arena in India. In a fast paced, constantly changing dynamic
business environment, RFL has delivered the most competitive products and services.RFL is
primarily engaged in the business of providing finance against securities in the secondary
market. It also provides finance for application in Initial Public Offers to non-retail clients in the
primary market RFL is also planning to initiate personal loan portfolio as fund based activity and
mutual fund distribution as fee based activities .Along with this, the company also undertakes non-
fund based advisory operations in the field of Corporate Financing in the nature of Credit
Syndication which includes bills discounting, inter corporate deposit, working capital loan
syndication, placement of private equity and other structured products

Religare Insurance Advisory Ltd:

Religare has been taking care of financial services for long but there was a missing link.
Financial planning is incomplete without protective measure i.e. structured products to take care of
event of things that may go wrong Consequently, Religare is soon coming up with Religare
Insurance Advisory Services Limited .As composite insurance broker, we would deal in both
insurance and reinsurance, providing our clients risk transfer solutions on life and non-life sides.
This service will take benefit of Religare’s vast business empire spread throughout the country
providing our valued clients insurance services across India.

We aim to have a wide reach with our services – literally! That’s why we are catering the insurance
requirements of both retail and corporate segments with products of all the insurance companies on
life and non-life side Still, there is more in store. We also cater individuals with a complete suite of
insurance solutions, both life and general to mitigate risks to life and assets through our existing
network of over 150 branches – expected to reach 250 by the end of this year!
For corporate clients, we will be offering value based customized solutions to cover all risks which
their business is exposed to. Our clients will be supported by an operations team equipped with the
best of technology support.

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Religare Insurance Advisory aims to provide neutral, transparent and professional risk transfer
advice to become the first choice of India.

COMPANY PROFILE

Religare Securities Ltd. is a wholly owned subsidiary of Fortis Financial Services Ltd. A
company promoted by the late Dr. Parvinder Singh, Ex- CMD of Ranbaxy Laboratories Ltd. The
Primary focus of RSL is to cater services in capital Market operations to Institutional Investors. The
company is a member of the National Stock Exchange (NSE).

BUSINESS & OPERATION:

BUSINESS:

Over a period of time RSL has recorded a healthy growing rate both in business volume and
profitability as it only the major players in this line of business. The business thrust has mainly in
the development of business from Financial Institutions, Mutual Funds and Corporate.

OPERATIONS

The operations of the company are broadly organized among the following functions.

Research & Analysis

This group is focused on doing stock picks and periodical scrip/ Segment specific research. They
provide the best of analysis in the industry and are valued by both our institutional and Retail
Clients.

Marketing

This group is focused on tracking potential business opportunity and converting them into business
relationships. Evaluation the need of the clients and tailoring products to the meet there specific
requirements help the company to build lasting relationship.

Dealing

Enabling the clients to procure the best rates on there transactions is the core function of this group.

Back office

This group ensures timely delivery of securities traded, operation matters with stock
9
exchange, statutory compliance, handling tasks like pay-in, pay-out, etc. This section is fully
automated to enable the staff to focus on the technicalities of securities trading and is manned by
professionals having long experience in the field.

INFRASTRUCTURE

Offices:

The company has offices located at prime location in Mumbai, New Delhi, Kolkatta and
Chennai. The offices are centrally located to cater to the requirements of institutional and
corporate clients and retail clients, and for ease of operation due to proximity to stock exchange and
banks. Today we have more than 170 branches all over India.

Communications:

The company has its disposal, an efficient network of advance communication system and intend to
install CRM facilities, besides this it is implementing interactive client information dissemination
system which enable clients to view there latest client information on web. It has an installed
multiple WAN to interconnect the branches to communicate on real time basis.The company is
equipped with most advanced system to facilitate smooth functioning of operations. It has installed
its major application on IBM machine and uses latest state of art financial software.

MANAGEMENT:

Mr. Sunil Godhwani is Chief Executive Officer and Managing Director of Religare Securities
Limited. He is also the CEO and MD of the parent company Fortis Financial Service Limited and is
managing the entire operations of both the companies.
CEO is supported by various HODs who are creditable professional consisting of Chartered
Accountants, MBAs with varied experience in financial services and stock broking functions. The
Board of Directors consists of Mr. Harpal Singh as Chairman and Mr. V.K. Kaul, Mr. Malvinder
Mohan Singh, Mr. Shivinder Mohan Singh as Directors.

DEPOSITORY PARTICIPANT SERVICES:

Religare Securities Limited has also ventured into depositary services to its clients and is among
leading depository services provider having more than 3000 Crore worth of securities under its
custody.

COMPETITIVE EDGE IN MARKET

Participant on the country’s premium exchange:

Religare is a member of the country’s premium stock exchange- The National Stock
Exchange of India (NSE) as well as Bombay Stock Exchange (BSE)

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 Clearing membership on Capital & Derivative Segments:
It has clearing membership on both the Capital Market and Derivative segments of the
exchange. We are also authorized to trade the retail debt market.
 Depositary Participant with NSDL & CDSL:
We are depositary participants with the country premium depositary service- National
Securities Depository limited (NSDL) as well as with the only depository with a country wide reach
– Central Depositary Service Limited (CDSL)
 Leading Private sector bank as partner:
Our banking partner is HDFC Bank, ICICI Bank & UTI Bank – The foremost private sector bank in
the country, which has the most technologically advanced infrastructure in the country, with
internet banking allowing access to information 24x7.
 Prime office location:
We have prime office location in the nation’s political capital and the business capital – Delhi &
Mumbai.

 Research Capabilities:
We have a dedicated team of analysts in our Bombay office – They provide fundamental analysis of
stock and markets, which are fundamentally strong and are helpful for retail investors.
 Technical Analysis:
A daily technical newsletter is published by our in house technical analyst, who is a recognized
leading practitioner in capital market. He tracks the progress of the calls on the real- time basis, and
advises of any change in the profit points of stop loss levels.
Thus with this in house services that is provided by Religare Securities Ltd. To its Clients has given
a competitive edge & more over it has given trust and confidence to its retail investors to as to build
a long term relationship with its clients.

CORPORATE STRUCTURE

Our organization is led by individual who are professional and leaders in every sense of the world.
Experts in their respective domain, esteem members of our Board of Directors are:

Name Designation
Mr. Harpal Singh Chairman
Mr. Vinay Kumar Kaul Director
Mr. Malvinder Mohan Singh Director
Mr. Shivinder Mohan Singh Director
Mr. Sunil Godhwani M.D

OBJECTIVES

Primary Objective:
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To Study how to build a relationship marketing in Capital Market.

Secondary Objective:

To study various financial products like Equity, Mutual Funds, Commodity& Portfolio
Management Services.
To Study the various services provided by Broker house to their clients.
To know investors experience in capital market
To study what other services investors expect from their broker house.

RESEARCH METHODOLOGY

Research:

The study of research method provides you with the knowledge and skills you need
to solve the problem and meet the challenges of the fast- based decision. Marketing
environment we define Business Research as a systematic inquiry whose objective is to
provide information to solve managerial problem.
It seeks to find explanation to unexplored phenomena to clarify the doubtful facts
and to correct the misconceived facts.

Types of Research:

Descriptive Research:
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Descriptive study is a fact- finding investigation with adequate interpretation. It is
the simplest type of research. It is more specific than an explanatory study, as it has focus on
particular aspect of the problem studied. It is designed to get her descriptive
information and provide information for formulating more sophisticated studies. Data are
collected by using one or more appropriate method, observation, interviewing and mail
questionnaire.

Type of Data Used:-

There are basically two types of Data

Primary Data
Secondary Data

Primary Data:-

Primary Data is first hand information that the researcher collects. It helps in collecting
useful and most accurate information that is needed for the researcher to do his research.

Sources of Primary Data:-

Questionnaire
Interview Schedule

Secondary Data:-

Secondary data is what the researcher collects from different sources. It also help researcher
to get elaborate information to do his research.

Sources of Secondary Data:-

Internet
Journals

Target Group/ Population:-

As this research is based on Relationship Marketing my Target group is my Clients who

are using the Services of Religare Securities in Dealing with Capital Market.

Area of Study:-
Varanasi city

Tools for Data Collection:-

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The Various method of Data gathering involves the use of appropriate recording forms. These are
called tools or instrument of data collection.
Sample Size :-

50 (Fifty)

Questionnaire:-

Close Ended Question:-

Are structured ones with two or more alternative responses from which respondent
can chose. They contain standardized answers and they are simple to administer and
easy to compile and analyzes.

Dichotomous or two- choice questions:-

A dichotomous question can be answered in one of the two responses such
as “Yes” or “No”. It is necessary to realized that in many two choices question there
may be potential alternative beyond the stated two.

Multiple Choice questions:-

These questions contain more than two alternatives.

Following points should be remembered before making this question
 The list of alternative choice should be exhaustive.
 It Should not overlapping
 There should be fair balance in choice
 All alternative should be reasonable.

SAMPLING

The Basic idea of sampling is that by selecting some of the element in a population in order to get
first hand information of study.
There are two type of sampling probability Sampling & Non probability sampling and in this
research, Researcher has taken probability sampling.

Probability Sampling:

Probability sampling is most commonly associated with survey based research where you need to
make inferences from your sample about a population to answer your research questions or to meet
your objectives. The process of probability sampling can be divided into four stages:
1. Identify a suitable frame based on your research question or objectives
2. Decide on a suitable sample size
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3. select the most appropriate sampling technique and select the sample
4. Check that the sample is representative of the population
The objective of probability sampling depends on the research question & on the objective.
Subsequently I need to have face to face contact with respondents.

Simple random sampling:

Simple random sampling involve in selecting sample at random from the sampling frame using
either random no. table. In my research I had use random selection of respondent who used to come
for the trading purpose in Religare securities office it is most accurate and easily accessible form
of sampling method

Convenience Sampling
Convenience or haphazard sampling involve selection haphazardly those cases that are easiest to
obtain for your sample, Such as the person interviewed at random in a shopping center for the
interview programmed. The sample selection process is continued until your required sample size
has been reached. Although this techniques of sampling is widely used it is prone to bias and
influence that are beyond your control. I has selected convenience sampling as some of the
respondent are my clients only.

Technique used for analysis & interpretation:-

Bar Diagram & Pie Chart
Percentage Analysis

PRODUCT DETAILS:-
 Stock Trading (RACE & RALLY)
 Depositary Services
 Marginal Financing
 Mutual Fund Distribution
 Portfolio Management Scheme
 Commodity Trading

R-ACE (Basic)

 No software installation required, easily accessible on browser

 NSE cash segment, NSE F&O and BSE on single platform
 Trade online and over phone
 Access your ledger balances and account information over
internet and phone
 Integrated DP, back-office and trading account
 Earn interest on cash margin deposited with us
 Online transfer of funds through multiple banks
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 Lifetime free DP account (No annual maintenance charges)*

R-ACE Lite (Advanced)

 Account activation charges Rs. 499/-
 Minimum margin of Rs. 5000/- required
 No software installation required, easily accessible on browser
 NSE cash segment, NSE F&O and BSE on single platform
 Real-time streaming quotes
 Alerts
 Hot key functions
 Trade online and over phone
 Access your ledger balances and account information over
internet and phone
 Integrated DP, back-office and trading account
 Online transfer of funds through multiple banks
 Lifetime free DP account (No annual maintenance charges)*

R-ACE Pro (Professional)

 Account activation charges Rs. 999/-

 Minimum margin of Rs.10 000/- required
 Traders terminal on your desktop
 NSE cash segment, NSE F&O and BSE on single platform
 Real-time streaming quotes
 Technical charting (intra-day and EOD)
 Multiple watch list
 Advanced hot-key functions for faster trading
 Derivative chains
 Futures & options calculator
 Access your ledger balances and account information over
internetand phone.
 Integrated DP, back-office and trading account
 Online transfer of funds through multiple banks
 Lifetime free DP account (No annual maintenance charges)*
 Earn interest on cash margin deposited with us
 Trade online and over phone

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TRADING

Introduction:

The trading on stock exchanges in India used to take place through open outcry without use of
information technology for immediate matching or recording of trades. This was time consuming
and inefficient. These imposed limits on trading volumes and efficiency in order to provide
efficiency, liquidity and transparency. NSE introduced a nation-wide on-line fully-automated screen
based trading system (SBTS) where a member can punch in to the computer quantities of securities
and the price at which he likes to transact and the transaction is executed as soon as it finds a
matching sale or buy order from a counter party. SBTS electronically matches orders on a strict
price/ priority and hence cuts down on time, cost and risk of error, as well as on fraud resulting in
improved operational efficiency. It allows faster incorporation of price sensitive
information in to prevailing prices, thus increasing the informational efficiency of markets, it
enables market participants, irrespective of their geographical locations, to trade with one another
simultaneously, improving the depth and liquidity of the market. It provides full Anonymity by
accepting orders, big or small, from members without revealing their identity, thus providing equal
access to everybody
It also provides a perfect audit trail, which helps to resolve disputes by logging in the trade
execution process in entirety.
This sucked liquidity from other exchanges and in the very first year of its operation, NSE becomes
the leading stock exchange in the country, impacting the fortunes of other exchanges and forcing
them to adopt SBTS also. Today India can boast that almost 100% trading take place through
electronic order matching.
Technology was used to carry the trading platform from the trading hall of stock exchanges to the
premises of brokers. NSE carried the trading platform further to the PCs at the residence of
investors through the Internet and to handheld devices through W A P for convenience of mobile
investors. This made a huge difference in terms of equal access to investors in a geographically vast
country like India.
The trading network is depicted in Figure 1.1 NSE has main computer which is connects through
Very small Aperture Terminal (VSAT) installed at its office. The main computer runs on a fault
tolerant STRATUS mainframe computer at the Exchange. Brokers have terminals (identified as the
PCs in the Figure1) installed at their premises which are connected through
VSATs/leasedlines/modems. An investor informs a broker to place an order on his behalf. The
broker enters the order thorough his PC, which runs under Windows NT and sends signal to the
satellite viaVSAT/leased line/modem. The signal is directed to mainframe.

DEPOSITORY SERVICES-AN OVERVIEW:

The Act defines Depository as, An organization where the securities of a shareholder are held in the
form of electronic accounts in the same way as a bank holds money. The Depository holds
electronic custody of securities and also arranges for transfer of ownership of securities on the
settlement dates.

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Depository System is concerned with conversion of securities from physical to electronic from,
settlement of trades in securities segment, transfer of ownership of shares and electronic custody of
securities.
National Securities Depository Ltd. (NSDL) is the country's first Depository, which provides
electronic depository facilities, traded in the equity and debt markets. Trading in dematerialized
securities on the National Stock Exchange (NSE) commenced on 26th December 1996. The
Bombay Stock Exchange (BSE) also extended the facility of dematerialized securities from
29thDecember 1997.Offering depository service to the shareholders is a positive sign a company
can send about its concern for the welfare of its shareholders. Fortis Securities Ltd. has ventured
into depository services to cater to its clients and is among leading depository services having more
than 4000 Crore worth of security under its custody.

BENEFITS OF DEPOSITORY SYSTEM:

In the depository system, the ownership and transfer of securities takes place by means of electronic
book entries. At the outset, this system rids the capital market of the dangers related to handling of
paper. NSDL provides numerous direct and indirect benefits, like:

Elimination of bad deliveries- In the depository environment, once holdings of an

investor are dematerialized, the question of bad delivery does not arise i.e. they cannot be held
“under objection" In the physical environment, buyer was required to take the risk of transfer and
face uncertainty of the quality of assets purchased, In a depository environment good money
certainly begets good quality of assets..

Elimination of al risks associates with physical certificates- Dealing in physical securities

have associates security risks of theft of stocks, mutilation of certificates, loss of certificates during
movements thorough and from the registrars, thus exposing the investor to the cost of obtaining
duplicate certificates and advertisements, etc This problem does not arise in the depository
environment. No stamp duty for transfer of any kind of securities in the depository. This waiver
extends to equity shares, debt instruments and units of mutual funds

Immediate transfer and registration of securities- In the depository environment, once the
securities are credited to the investors account on pay out, he become the legal owner of the
securities.
There is no further need to send it to the company's registrar for registration. Having purchased
securities in the physical environment, the investor has to send it to the company’s registrar so that
the change of ownership can be registered This process usually takes around three to four months
and is rarely completed within the statutory framework of two months thus exposing the investor to
opportunity cost of delay in transfer and to risk of loss in transit.
To overcome this, the normally accepted practice is to hold the securities in street names i.e. not
register the change of ownership. However, if the investors miss a book closure the securities are
not good for delivery and the investor would also stand to loose his corporate entitlements.
Faster settlement cycle - The exclusive demat segments follow rolling settlement cycle of T+2i.e.
the settlement of trades will be on the 2nd working day from the trade day. This will enable faster
turnover of stock and more liquidity with the investor.

18
 Faster disbursement of non-cash corporate benefits like rights, bonus, etc- NSDL
provides for direct credit of non cash corporate entitlements to an investors account, there by
ensuring faster disbursement and avoiding risk of loss of certificates in transit.

Reduction in brokerage by many brokers for trading in dematerialized securities -

Brokers provide this benefit to investor as dealing in dematerialized securities reduces their back
office cost of handling paper and also eliminates the risk of being the introducing broker.
.

Reduction in handling of huge volumes of paper -Periodic status reports to investor on

their holdings and transactions, leading to better controls.

Elimination of problem related to change of address of investor, transmission etc.-In case of

change of address or transmission of demat shares, investors are saved from undergoing the entire
change procedure with each company or registrar. Investors have to only inform their DP with all
relevant documents and the required changes are effected in the database of all the companies,
where the investor is a registered holder of securities.

Elimination of problems related to selling securities on behalf of a minor -A natural

guardian is not required to take court approval for selling demat securities on behalf of a minor
Ease in portfolio monitoring- since statement of account gives a consolidated position of
investments in all instruments so as to make portfolio monitoring easy.

HOW DOES DE- MAT ACCOUNT WORK

Advantages:

Transacting the depository way has several advantages over the traditional system of transaction
using share certificates. Trading in de-mat segment completely eliminates the risk of bad deliveries,
which in turn eliminates all cost and wastage bad delivery has with follow up for rectification.The
reduction in risk associated with bed delivery has leas to reduction in brokerage to the extent of
0.5% by quite a few brokerage firms.
In case of transfer of electronic shares, you save 0.5% in stamp duty.
You also avoid the cost of courier/notarization/the need for further follow - up with your broker for
shares returned for company objection.
In case the certificates are lost in transit or when the share certificates become mutilated or
misplaced, to obtain duplicate certificates, you may have to spend at least Rs, 500/- for indemnity
bond, newspaper advertisement etc,. Which can be completely eliminated in the demat form,
You can also receive your bonuses and right in to your depository account as a direct credit, thus
eliminating risk of loss in transit.

You can also expect a lower interest charge for loans taken against demat shares as compared to the
interest for loan against shares, This could results in a saving of about 0.25% to 1.5% Some banks
have already announced this,
RBI has increased the limit of loans against dematerialized securities as collateral to Rs, 2 mn per
borrower Rs, and 1 mn per borrower in case of loans against physical securities.RBI has also
reduced the minimum margin to 25% for lac against dematerialized securities as
against 50% for loans against physical securities.

19
OPENING A DE-MAT ACCOUNT:
Opening a depository account is as simple as opening a bank account. You can open a depository
with any DP convenient to you.
To Open an Account you have to"
Fill up the account opening form which is available with the DP.
Sign the DP-client agreement, which defines the right and duties of the DP and the person wishing
to open the account. Copy of PAN card is req. along with address proof and cheque. After that
client receives his/her client account number (client ID).
This client id along with your DP id gives you a unique identification on the depository system.

There is no restriction on the number of depository accounts you can open. However, is your
exertion physical shares are in joint names, be sure to open the account in the same order of names
before you submit your share certificates for demat.

TO DEMATERIALIZE YOUR SHARE CERTIFICATES YOU HAVE TO"

Fill up a dematerialization request from, which is available with your DP"
Submit your share certificates along with the form; (be sure to write” surrendered for demat" on the
face of the certificate before submitting it for demat).
Receive credit for the dematerialized shares in to your account in 15 days

Safety:

There are checks and balances in the depository design to ensure safety of your holding. A DP can
be operational only after by SEBI, which is based on the recommendation from the depository and
SEBI's own independent evaluation. SEBI has prescribed criteria for becoming a DP in the
regulations. DPs are allowed to affect any debit and credit to an account only on the basis of valid
instruction from the client.
Every day, there is a system driven mandatory reconciliation between the DP and NSDL, There are
periodic inspection in to the activities of both DP and R&T agent by NSDL. This also includes
records based on which the debit/credit is affected. This data inter-charge between NSDL and its
business is protected by standard protection measures such as encryption. This is a SEBI
requirement. There are no direct communication links between two-business partner and all
communications between two business partners are routes through NSDL.
All investors have a right receive their statement of accounts to a random sample of investors as a
counter check. In the depository, the depository holds the investor holdings on trust. Therefore,: if
the DP goes bankrupt the creditors of the DP will have no access to the holdings in the name of the
DP There investors can then either rematerialize their holding or transfer them to a different account
held with another DP.
Investor Grievance: All grievance of the investors are to be resolved by the concerned DP, if they to
do so the investors has the right to approach NSDL.
Insurance Cover: NNSDL has taken a comprehensive insurance policy to protect the interest of the
investors in cases of failure of the DP to resolve a genuine loss.

MARGINAL FINANCING
20
The Basics:

Buying on margin is borrowing money from a broker to purchase stock. Margin trading allows you
to buy more stock than you will be having normally.
To trade on margin, you need a margin account. This is different from a regular cash account in
which you trade just with the money in the account. An initial investment in required for a margin
account. This deposit is known as the minimum margin. Once the account is opened and
operational, you can borrow money to purchase a stock.
You can keep your loan as loan you want, provided you fulfill a few criteria. First, when you sell
the stock in a margin account the proceeds go to your broker against the repayment of the loan, until
it is fully paid, second, there is also a restriction called the maintenance margin, which is the
minimum account balance you must maintain. If you do fall below this level, you will be forced to
deposit more funds or sell stock to pay down your loan; this is known as a “margin call".
Borrowing money isn't without its costs, On top of the fact that the margin - able securities in the
account are collateral and you’ll also have to pay interest on your loan.

ADVANTAGES OF MARGIN

Why use margin? It's all about leverage. Just as companies borrow money to invest in projects,
investors can borrow money and leverage the cost they invest. Every point a stock goes up is
amplified with leverage.

THE RISKS OF USING MARGIN

It should be clear by now that margin accounts can be very risky and are not suitable for
everyone, Leverage is a double-edged sword: losses are amplified to the same degree as gains are.
In fact one of the definitions of risk is the degree that an asset swings in price. As leverage is
amplifying these swings, by definition, it increases the risk to your portfolio

MUTUAL FUNDS DISTRIBUTION

Introduction:

As you probably know, mutual funds have become extremely popular over the last 20 years. What
was once just another obscure financial instrument is now a part of our daily lives. In fact too many
people investing mean buying mutual funds. After all, its common knowledge that investing in
mutual funds is (or at least should be) better than simply letting your cash waste away in a saving
account.

The Definition:

A mutual fund is nothing more than a collection of stocks and/or bonds. You can make money from
a mutual fund in three ways:
1) Income from dividends on stocks and interest on bonds. A fund pays out nearly all
income it receives over the year to fund owners in the form of a distribution.
2) If the fund sells securities that have increased in price the fund has a capital Gain.
21
Most funds also pass on these gains to investors in a distribution.
3) If fund holding increase in price but are not sold by the fund manager, the fund's shares increase
in price. You can then sell your mutual fund shares for a profit.

Advantages of Mutual Funds:

. Professional Management - A mutual fund is a relatively inexpensive way for a small

investor to get a full- time manager to make and monitor investments.
. Diversification- By owning shares in a mutual fund instead of owning individual stokes or bonds,
your risk is spread out.
. Economies of Scale- Because a mutual fund buys and sells large amounts of securities at
a time, its transaction costs are lower than you as an individual would pay.
. Liquidity - Just like an individual stock, a mutual fund allows you to request that your
shares be converted in to cash at any time.
. Simplicity - Buying a mutual fund is easy; Most Companies have their own line of
mutual funds, and the minimum investment is small.

Disadvantages of Mutual Funds:

. Professional Management - Management is by on means infallible, and even if the fund loses
money, the manager still takes his/her cut.
. Costs- The mutual fund industry is masterful at burying costs under layers of jargon.
. Dilution - It's possible to have too much diversification. Because funds have
smallholdings in so many different companies, high returns from a few investments offer don't
make much difference on the overall return.
. Taxes - When making decisions about your money, fund managers don't consider your personal
tax situation.

PORTFOLIO MANAGEMENT:

Portfolio Management Optimizes cash flows across a portfolio of assets, and provides risk
management expertise, Risks are assessed, mitigated and managed daily through rigorous and
strictly enforced processes that operate independently from the transactions they monitor,
1) Portfolio Management is a vital contributor to a successful deregulated market.
2) Reduces price and volume fluctuations and increases buyer and seller certainly.
3) Delivers lower costs by managing risk on behalf of producers and sellers, and by
managing supply and demand imbalances.
4) Fosters innovative thinking as well as new product and service offerings stabilize cash flows.
5) Portfolio Management provides benefits to wholesale customers
Seeks to optimize return on invested capital
6) Fortis brings out Portfolio Management Service after obtaining the approval of the
Securities and Exchange Board of India (SEBI).
7) Advantages of Portfolio Management are Expertise, Professionalism and integrity,
tailor - made portfolio to match your risk profile, Periodic interaction and reporting
that enables you to track your portfolio without any delay or difficulties.

PRIVATE CLIENT SERVICING:

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High net worth investors need personalized and professional services to cater to their every growing
need. We at Fortis Securities Limited focus on comprehensive private client service capabilities to
high net worth investors and investors first hand information relating to their Investments. The
motto at Fortis is to grow with your client and to adapt yourself according to your clients need.
Fortis has a state-of-the-art consulting, implementation and investment services solution for
advising clients to focus on their core competencies. Leveraging our reputation, expertise,
economies of scale and continued reinvestment and our private client Services team partners with
the clients to develop a thorough understanding of the investment styles

KEY PROGRESSIVE INITIATIVES IN RECENT YEARS INCLUDE:

The depository and share dematerialization systems that have enhanced the efficiency of the
transaction cycle. The Info Tech-driven National stack Exchange (NSE) with a national presence
(for the benefit of investor’s across locations) and other initiatives to enhance to exchange the
quality of financial disclosures
Indian capital markets have rewarded Foreign Institutional Investors (FIIs) with attractive
valuations and increasing returns.

THE OPPORTUNITY TODAY:

With over 20 million shareholders, India has the third largest investor base in the world after the
USA and Japan. Fortis offers specialized and personalized services to its NRI investor. We off era
complete investment mechanism to help you make the right decisions at the right times. Fortiseven
goes a step further and Invests for you by drawing on its extensive Research and Technical analysis
skills.
So as an NRI, all you need to so is register with us for peace of mind and watch your investments
Multiply and Grow.

COMMODITIES TRADING

Commodities Trading is a global phenomenon and offers tremendous potential to market

participants for both profit taking of small price corrections as well as also to hedgers looking at
managing price risk on account of price fluctuations.
A commodity must meet three basic conditions to be successfully traded in the futures market:
1- It has to be standardized and for, agricultural and industrial commodities must be
in a basic, raw, unprocessed state.
2- Perishable commodities must have an adequate shelf life, because delivery on a
futures contract is deferred.
3- The cash commodity's price must fluctuate enough to create uncertainty, which
means both risk and potential profit.
Unlike a stock, which represents equity in a company and can be held for a long
time, if not indefinitely, futures contracts have finite lives, in most cases, delivery never takes place.
Instead both the buyer and the seller, action independently of each other, usually liquidate their long
and short positions before the contracts expires the buyer sells futures and the seller
buys futures.

MULTI COMMODITY EXCHANGE:

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Multi Commodity Exchange of India Limited (MCX), is a new order Exchange with a mandate for
setting up a nationwide, online multi-commodity marketplace, offering unlimited growth
opportunities to commodities market participants, As a true neutral market , MCX has taken several
initiatives to usher in a new-generation commodities futures market in the process, to become the
countries premier Exchange.
MCX, an independent and a denaturalized exchange since inception is all set to introduce a state of-
the-art online digital exchange for Commodities Futures trading in the country and has accordingly
initiated several steps to translate this vision in to reality. Religare brings to you a unique
opportunity to be able to trade in commodities. One of the first and still a part of a very select
group, Fortis enables you to trade in ways never before possible.

RELATIONSHIP MARKETING

Relationship Marketing has an aim of building mutually satisfying long term relationship with its
clients in order to earn and retain their business. Marketer accomplishes this by promising and
delivering high quality product and services at fair price to the other parties over time. Relationship
marketing build longs strong economical, technical and social ties among the parties. The ultimate
outcome of relationship marketing is the building of unique company assets called the marketing
network.
A Marketing network consists of the company and its supporting stakeholders (Clients,
Employees, ad agencies and others) with whom it has built mutually profitable business
relationship. The operating principal is same build an effective network of relationship with key
stakeholders.
Marketing Channel: To reach target market, marketer uses three kinds of marketing
Channel.
1. Communication Channel: It deliver & receive message from target buyers and include
newspaper, television, telephone etc.
2. Distribution Channel: To display sell or deliver the physical product or service(s) to the buyer or
user. This includes distributor and agents.
3. Service Channel: To carry out transaction with potential buyers. Marketer clearly faces a design
problem in choosing the best mix of communication, distribution and service channel for their
offerings
Supply Chain: The marketing channel connect the marketer to the target buyers, the
supply chain describe a longer channel stretching. The supply chain represents a value
delivery system. Each company captures only a certain percentage of total value
generated by the supply chain. When a company acquires competitor or moves upstream of
downstream, its aim is to capture a highly percentage of supply chain value.

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Competitor: It includes all the actual and potential rival offering and substitutes that a
buyer might consider. We can broaden the picture further by distinguishing four levels of
competition based on the degree of product sustainability:
1. Brand Competition: A company sees its competition as other companies offering
similar products and service to the same customer at similar price.
2. Industry Competition: A company sees its competition as all company making the
same products or class of products
3. From Competition: A company sees its competitors as all companies manufacturing
products that supply the same service.
4. Generic Competition: A company sees its competitors as all companies that compete
for the same consumer.

Marketing Environment: Competitor represents only one force in the environment in which the
marketer operates. The marketing environment consists of the task environment and the broad
environment.
1. Task environment: It includes immediate actors involved in producing, distribution and
promoting the offering. The main actors are the company, suppliers, distributing, dealers and the
target customer.
2. Broad environment: It consists of demographic environment, economical environment, natural
environment, technological environment, political environment, and socio cultural environment.
These environment contain forces that can have a major impact intask environment

Principles of Relationship Marketing:

The principal of personal selling and negotiation thus for described are transaction oriented because
their purpose is to close a specific sale, but in many cases the company is not seeking an immediate
sale, but rather to build a long term suppliers- customer relationship. The company wants to
demonstrate that it has the capabilities to server the account’s needs in a superior way.
Today’s customers are large and often global. They prefer suppliers who can sell and deliver a
coordinated set of product and services to many locations.
When a relationship management program is promptly implemented, the organization will begin to
focus as much on managing its customer as on managing its products. At the same time companies
should realize that while there is a strong and warranted move toward relationship marketing, it is
not effective in all situations. Ultimately companies must judge which segment and which specific
customers will respond profitably to relationship management.

Customer Relationship Management:

Customer Relationship Management (CRM) is a well known business concept. Managers today are
working hard to build and maintain a relationship with the customer given the importance of
customer lifetime value. While the concepts of CRM and Customer Lifetime value are well
established and understood by managers, managing customer relationships has become a challenge
for many managers. Several firms have implemented dedicated software tools (Seibel ,sales
force.com etc.) for customer relationship management, and even more number of companies is
planning to do the same. Few firms have even created offices of customer relationship management:
Client partners, Account managers, Program Managers etc. In spite of all these efforts, managers
25
are finding it hard to manage customer relationships the challenge of managing customer
relationships led to a new concept called Levels of Customer Relationships developed by INSEAD,
France. The central theme of this concept is:
Customer relationship is an evolutionary process that can be identified as 6 distinct
stages.
Customers have different needs and expectations during different stages of this
relationship.
Customer relationship is a dynamic process and can move from one stage to another
based on customer's aspirations and customer's buying experience

Why do customers have a relationship with the vendor?

Every salesman knows that customer often wishes to have a relationship with the vendor. Many
firms therefore want to make use of this relationship and have instituted customer loyalty programs
- aimed at rewarding loyal customers. For example, Airlines have free miles program, credit card
firms have points program, Grocery stores have a special discount for loyalty cardholders etc.
Looking from the customer's perspective, customer expresses a need for a relationship with the
vendor for a few basic reasons: satisfy their needs, convenience, reliability, lower cost of
transaction. Customers need products or services and will obtain them, but they are willing to enter
into a relationship with the seller to make the process of buying easier and a more pleasant
experience.
One has to note that the intensity or depth of the relationship which the customer expresses to have
with the vendor depends in the intensity of his/her needs. If a product/service is vital to the
customer e.g. financial product, then customer is willing to have a deeper relationship in order to
have their needs satisfied as precisely as possible. On the other hand if the customer wants a routine
service or generic product e.g. customer needs tips from his broker while trading in thestock
market, then the relationship is superficial - characterized by buyer's convenience. To understand
this considers the following examples:
1. Customer, who is a telecom service provider, wants to implement a ERP software. Since the
software has to be customized for the Telco, the customer is willing to establish a deep relationship
with the vendor by having a development & maintenance contract with the vendor.

2. Customer, who wants a copy of MS Project installed in a computer. Since this is a simple
purchase, the customer wants to buy it from a near by store and install it himself. Thus there is no
real relationship between the customer and the vendor.
Both examples point to the fact that the level of relationship a vendor enjoys with the customer is
directly dependent on the criticality or importance of customer's Needs. In short ,customers enter
into a relationship with the vendor in order to serve their own needs.

Strengthening Customer Relationships:

We now understand that the depth of the relationship between vendor and customer is directly
dependent on the intensity of the customer's needs. Also note that the depth of relationship is
defined by the customer. This creates a challenge for a salesman or a marketer at the vendor firm.
For a vendor to increase sales, the vendor firm must improve the relationship with the buyer. And to
improve the relationship, vendor must know the current level/stage of relationship he has with the
customer. So the first step in managing customer relationship is to know and understand the levels
of customer relationships.

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Levels of Customer Relationships:

As mentioned earlier, relationship between buyer and seller can be identified in 6 distinct levels.
Level-1 being the lowest level of relationship and level-6 being the deepest level of relationship
Level-1: Utility Need
Level-2: Convenience Need
Level-3: Comfort Need
Level-4: Personal Recognition Need
Level-5: Self-_expression Need
Level-6: CO-Creation Need
From a marketing perspective, the customer lifetime value is lowest at level-1 and is highest at
level-6. This is also reflected in the revenue or sales from a customer. Customer, with whom a
company enjoys the highest level of relationship, will also
Be the most profitable customer. It is therefore in the vendor's best interest to have very deep
relationship with the customer.

Level-1: Utility Need

This is the most basic interaction between customer and vendor. Here the customer desires to buy a
particular product/service. Customer interacts with the seller with the sole aim of acquiring the
product/service. The relationship between the firm and the customer is characterized by efficiency
in transactions, straight forward, no-frills selling. To increase sales, vendor must work on
availability of the product/service. Customer will buy only if a product/service appeals to the
rational side of the customer i.e. Price and convenience. Customer does not bond with the vendor as
the relationship is a purely utilitarian one - exchange of goods/service for money. The vendor
should respond to the customer (in this level of relationship) by providing the required
goods/service, and refrain from interacting at a deeper level i.e., by not offering added
products/service - other than those requested by the customer. If the vendor insists or attempts to
force a relationship to a higher level, the customer may "pull-out" thus risking future sales .To
understand this, consider this example: If someone purchased a laptop from DELL Computers. He
placed an order online - for a particular configuration. His expectation from the vendor is that Dell
will deliver the computer on stated
Delivery date He is buying from Dell to meet by needs at a price which is attractive for him. If the
salesman at Dell attempts to push additional hardware or software - which is not what he wanted, he
might get annoyed and cancel the order.
Vendors must first identify the level of relationship the customer has with them, and then craft a
strategy to deepen it. In this case, a vendor can deepen the relationship by increasing the number
of interactions. This can be done by: Offering a wide range of products/service, having a
sales operations - i.e., Internet or all 24 hour shops.
For example, Dell can increase the number of customer interactions by offering a full range of
computer accessories: Printers, Scanners, cartridges, office software,
Computer games etc. Dell can increase the number of customer interactions by offering value added
services such as on-site maintenance, free software updates etc.
Utilitarian relationships can be deepened by augmenting the basic service/goods with a value
addition: Cross selling or value addition.

Level-2: Convenience Need

27
Once the customer has easy access to service/goods that they need, customers look for ease of
purchase process this denotes a second level of relationship. The vendor should respond by
providing services that simplify the buying process i.e., identify and eliminate those procedures that
are a hindrance to obtaining a product/service.
For example, having a shorter checkout lines in a store, having the products courier & providing the
tracking number to the customer, having a service personal ready to attend the customer when the
customer enters the bank/hotel/office etc.
To improve the buying process, the vendor must understand thoroughly the entire customer
purchase experience and then eliminate the nagging problems in the purchase process. Service
companies often resort to mystery shoppers - who act as customers and buy the product/service to
measure & improve the buying experience. Often times, managers listen to feedback from front-line
employees for suggestions to improve the customer's buying experience.
For example, Dell provides the exact shipment details of the computer and is delivered on the
specified time. In addition, Dell has a complete e-Commerce website which enables a secure and
easy payment method. Airlines provide comfortable lounges at the airport - while customers wait
for their flight. Airlines also provide e-ticketing, curb side luggage check in, on-line flight details
etc., to make customers feel comfortable during the purchase process

Often times, there are several instances of customers abandoning their purchase process in the
midway. This is the sure sign of an inefficient and inconvenient buying process Relationships at this
level can in strengthened by widening the service interactions with customers. By this I mean, look
at the ways the customer buys your
Product/service and then provide additional services to make it simpler and easier for the customer.
Customer Activity Mapping (CAM) & Customer Decision Mapping (CDM) are the tools that can
be used to analyze the decision making, buying, using, and consumption experience. And in each
stage, the objective of the vendor is to identify situations that pose obstacles to the buying process.
Making the buying process as pleasurable as possible, a vendor can strengthen relationship with the
customer in this level and also take the relationship to the next level.

Level-3: Comfort Need

Once the customer has a convenient buying process, then they wish to have a "pleasant shopping
experience" i.e., the customer seeks a buying interaction where he feels comfortable. This implies
that the vendor should foster a buying environment in which customer feels comfortable and is
characterized by an agreeable and relaxing purchase ambiance.
For example, many multi-million dollar business deals are done at resorts - away from the clutter of
the office environment. BASF, a fortune-100 chemical company often conducts the contract
negotiations on a luxury yacht. This provides the right ambiance and mood to put the customer at
ease and feel comfortable during the buying process.
Irony of this "comfort need" is that customers often overlook the comfort factor - and often
customer notices the absence of the comfort. A discomfort during the
Buying experience is easily noticed and registered, while comforts are forgotten by customer.CRM
efforts in this level must be focused on making the customer feel comfortable; create a feel-at-ease
feeling. The marketer should strive to provide customers comfort, fun, surprise, and other means of
generating a positive feeling. Note that this is distinctly different than relationship building at level-
2, where the focus was to remove any factor which caused inconvenience to the customer.
Relationship is built on a feeling of ease and comfort can be strengthened by providing more of

28
the same - greater comfort, fun and pleasant interaction environment. This involves training the
front-end employees to provide a Comfortable experience to the customer and being sensitive and
responsive to the customer's level of interaction the marketing efforts must be directed at
improving/building the memory of pleasant experiences of the customer.

Level-4: Personal Recognition Need

Often times, regular/loyal customers expect the vendor to interact in a way that his/her personal
choices are recognized. This implies that the customer is seeking a level of relationship where they
expect the vendor to recognize their needs - without them asking for it. At this level, the loyalty of
customer has been well established; customer enjoys the convenience and a feeling of comfort.
Here, in this level of relationship, the customer needs are "personal". In earlier levels, the needs
were mostly contextual, i.e., based on the context of buying experience.CRM efforts at this level are
to personalize the service/product offerings. For example, financial institutions treat their high value
customers with personalized checkbooks, providing a personal
financial advisor, etc. In business-to-business environment, this is characterized by having a
dedicated relationship manager who interacts with the client, who knows the clients exact needs and
has the authority to deliver the customer's needs. The "relationship manager" or "client partner" can
also make suggestions; provide consulting advice to the customer - Along with dinners/lunches,
tickets to popular events etc.
Advent of Internet has created opportunities for vendors to provide customized web interfaces to
each of their clients. Amazon.com ebay.com etc Provide customers with customizable web
interfaces
To bring a customer to this deep level of relationship, the level-3 relationship of making the
customer feel comfortable must always be accomplished. Only when the customer is comfortable,
vendor can discover (discreetly) the personal needs of the customer - and then move the relationship
to the next higher level. Relationship at Level-4 is analogous to that of a romantic partner - but not a
spouse or fiancé. The relationship at this level is more personal – but without invading the privacy
of the customer. The timing therefore needs to be right - so that any potential tensions or conflicts
are avoided or reduced to minimum. The company must know the customer details, possible tastes
and preferences sufficiently well to Build the relationship. Interactions must be respectful as
exchange of personal information may be perceived as invasive.

The irony of the CRM systems at this level is that customer feels that the CRM systems
compromise customer's privacy - and for that reason most customers are reluctant to share personal
information with the vendor, which in turn cause most CRM implementations fail. A salesman or
marketer or account manager must therefore take extra precaution not to reveal any personal
information of the customer to the CRM database system. This personal information must be
carried in the mind of the vendor salesmen. Customer's need for personal recognition may be met
by very simple acts by the salesman, such as rewards for customer loyalty (given to the customer -
i.e., buying agent or the key decision maker), tailor made products, and words of appreciation.

Level-5: Self-_Expression Need

Once the customer feels that the vendor recognizes him/her as person and can associate personally
with the vendor, the customer is ready for the next level of relationship - that is of Self-_expression.

29
Customers who are in this level of relationship expect the vendor to focus on customizing and
personalizing the product/service offerings. The customer expects the vendor to have a clear
understanding of their needs and the vendor should be able to meet them. The relationship is
characterized by mutual trust, confidence & respect. For example, Dell Computers being a customer
of Intel expects Intel to know its needs for latest and most powerful microprocessors for the
Christmas season. The Customer then expects Intel (vendor) to announce and supply the latest
processors in time so that Dell can ship the computers to its customers in time for Christmas. In a
consumer world, a common example will be that of a (famous) client and his/her fashion designer.
The client expects the fashion designer to know his/her tastes and provide clothes accordingly.
It must be noted that in a B2B world, customers are more rational. Their business needs drives the
relationship and is partly independent of personal factors. As a result, vendor can build this
relationship by learning the customer needs. Based on these learning/insights, vendor should be
able to offer highly customized and personalized offerings. Customer relationships in levels 1-4 are
defined by customer's experience and is therefore heavily dependent to the external environment
(i.e., external to the customer). At levels 5 and above the relationship depends on internal and
external factors including rational and emotional considerations.
The key for success in building relationship at this level is to understand the customer's implicit
needs - i.e., those needs which are not expressed verbally. Vendor can strengthen the relationship by
understanding the customer's implicit needs and focusing on different ways to customize and
personalize the offerings. In a B2B setting, this involves understanding the customer's business
operations, business models and then providing customized solutions: Like releasing products in
time for Christmas or having goods packed in a truck in a manner it is efficient for customer etc.

Level-6: Co-Creation Need

This denotes the highest level of customer relationship. At this level, customer is very
comfortable dealing with the vendor; the relationship is characterized by a sense of collaboration.
The customer feels a need for a unique product/service and is willing to work with the vendor to
develop the product/service. Often the idea of co-creation is initiated by the customer to the surprise
of the vendor. Co-creation relationships are personal and rational. At this level of relationship, the
customer loyalty & trust is very high. Customers are willing to invest for joint development of
products/service. Customer feel closely bonded to the vendor - to the point that the customer seeks a
joint destiny with the vendor. I.e., some aspects of customer's interests merge with that of the
vendor's interests. Co-Creation denotes the highest level of customer relationships. This relationship
can be strengthened by broadening interactions which involve co-creation of products/services.

SWOT ANALYSIS

A SWOT analysis focuses on the internal and external environments, examining strengths and
weaknesses in the internal environment and opportunities and threats in the external environment

STRENGTHS:

Services

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As a product Religare is a extremely innovative product with very less cost. Services like online
trading facility, institutional and domestic broking, customized research reports with almost 80%
efficiency etc give Religare an edge over its competitors. Religare provides other support services
that make retail investors more confident and assured with their trading. SMS alerts (allowing
traders and investors to make the most of the available opportunities), Softer, intangible features
like imagery, equity driving preference.

Relationship managers

The company has a team of relationship managers who are dedicated to the service of clients. This
RMs takes care of clients’ even smallest problem and makes efforts to solve them through their
expertise. They also help their clients to invest their wealth in the market.

Distribution Network

Religare with almost 150 branches beefed up by comprehensive online research, advice and
transaction services. In near future expect to make 200000+ retail customers being serviced through
centralized call centre / web solution.

Marketing

Religare (previously Fortis securities) is a veteran equities solutions company with loads of
experience in the Indian stock markets. Religare does not claim expertise in too many things.
Religare expertise lies in stocks and that's what it talks about with authority. So when he says that
investing in stocks should not be confused with trading in stocks or a portfolio-based strategy is
better than betting on a single horse, it is something that is spoken with years of focused learning
and experience in the stock markets.
Products
Company’s product line is a basket of financial services offered to its clients. It’s a all product
single shop for investors. Here we offer Along with Equity, Mutual funds, personal loans,
PMS,Corporate Finance and Investment banking etc to our customers. Our products are customized
according to individual demand and preference

WEAKNESS:

Customer Satisfaction

As far as customer satisfaction goes Religare has to tighten its Boots. The company does not have
enough Relationship managers to cater to huge customer base. The account opening takes 2
working days whereas an India bull takes half the time for this purpose.

Branding

Though the company has a efficient products but large part of investment interested population

31
does not know the company. The most basic expectation for a trader or investor when one begins
trading is that one must get timely delivery of shares and proceeds from sale of shares. Also ones
cash balances with the broker must be safe and secure. Though this confidence in the broker
comes with time and experience, good and transparent practices also play a major role in imbibing
confidence in traders.

Competition from banks and Niche Players

Most of the banks due to good branding have the faith of the customers of their banking
database. So they enjoy the liberty of huge database and customers find it more reliable to trade
there rather than with a unknown broker. Also banks like HDFC Bank and ICICI Bank have the
advantage of linking the trading accounts of their customers to saving accounts. This makes trading
easier, and at the same time a trader withdraws exactly as much money from his account as is
needed to complete the trade. Similarly sales proceeds are credited directly to saving account. Niche
players’ presence as sub brokers or Small broking house like Abhipra, Way to wealth etc. attracts a
good share of market and run parallel to giant companies

OPPORTUNITIES:
The external environment analysis may reveal certain new opportunities for profit and growth.

Ever-increasing market
After the NSE brought the screen based trading system stock markets are now more secured which
has attracted lot of retail investors and the demand is increasing day by day. This has resulted in
improved liquidity and heavy volumes on transactions. Religare is one of the early entrants here. As
to how much it will roar and how swift it can swoop on the market, the future alone can answer
such queries. Religare has been a mega player and is known for being a mover
of stocks. It is also known for putting big deals through and enjoys good networking with the FIIs.
It has been dynamic enough to move with the times and capture the opportunities that the market
throws up from time to time.

Improving Technology

In country like India technology is always improving which gives the company a chance to keep on
improving their product with time whereas for the small players like local brokers it will be difficult
to keep the same pace as the changing technology. Also with SEBI lying down some strict
guidelines small brokers are finding it harder to retain the customers with no research department
and small capital. The traditional business model is highly dependent on a large network of sub-
brokers, and many established players may not have systems (technology, customer service, etc.)
capable of directly servicing so many retail customers.

Unfulfilled needs of the customers

With so many competitors offering their products in the market but no one is able to completely
satisfy the customers. Some have the problem of lack of information or some were scared of
volatility of the stock markets. Religare has the opportunity to tap this unsatisfied set of customers
and to make hold in the market. The Internet serves to break all barriers to information, as it offers
an extremely hassle-free investing platform. And, Religare hopes to fully utilize and capitalize on

32
this platform. This original idea by Religare itself was born out of the consumer's need for a more
transparent, easy to understand and convenient option of investing in stocks.

Education Level

The education level in the country is improving year after year as far as technology goes. With that
the understanding of the stock market is also increasing and a lot of retail investors are steeping in
the markets which is being shown by increasing volumes, transactions and indices

THREATS:

New Competitors
A lot of new competitors are trying to enter the market in this bullish run to taste the flavor of this
cherry. This is creating a lot of competition for large players like Religare and it is creating little
confusion in the minds of the customers about the services provided by the broker. Also many
banking firms are entering into the market with huge investment. Competitors like ICICI, kotak,
hdfc, 5-paisa etc. are posing a lot of threats to the company.

Technology based business

Online trading is totally based on the technology which is quite complex. Typically, the
technology solution has to start from the Internet front-end (or the screen that you see when you
begin trading). Then it needs to get into the 'middle tier' of risk management systems that assess
data from banks and depository participants (DP), calculate client risk at that point in time, and give
the 'Go/No go' advice to the trade. So technology is a kind of threat because unless until it is
working properly it is good but internet is not that safe. Though a lot of cyber laws are being made
but not yet executed.
Switch over cost

The cost of switching over from one company to other is minimal therefore the company can’t even
stop for breathing i.e. it has to provide quality service all the time to its clients.

33
Interpretation and analysis

34
1. In which profession are you engaged in?

RESPONDENTS PERCENTAGE
Business 25 50%
service 10 20%
Professional 10 20%
student 5 10%
Total 50

35
 30

25

20

15

10

0
business service professional student

Interpretation:

50% of the respondents are businessman

20% of the respondents are serviceman
20% of the respondents are professionals
10% of the respondents are students

Inference:

From the above survey most of the respondents are found to business man by
profession

36
2. Do you trade in stock market?

respondents percentage
Yes 39 78%
No 5 10%
Earlier, but now 6 12%
stopped
total 50

37
 no earlier,but now stopped
10% 12%

yes
78%

Interpretation:

78% of the respondents trade in stock market

10% of the respondents do not trade in stock market
12% of the respondents trade earlier

Inference:

From the above survey most of the respondents trade in stock market.

38
3. How much is your income or your credibility?

respondents Percentage
Between 1-2 lac 10 20%
Between 2-3lac 20 40%
Between3-4lac 15 30%
Above 4 lac 05 10%
total 50

39
 above 4 lakh
10% between 1-2 lakh
20%

between 3-4 lakh

30%

between2-3 lakh
40%

Interpretation:

20% of the respondents are found to be between 1-2 lac

40% of the respondents are found to be between 2-3 lac
30% of the respondents are found to be between 3-4 lac
10% of the respondents are found to be more than 4 lac

Inference:

From the above survey most of the respondents are found to be between 2-3 bracket.

40
4.how much you trade in stock market?

respondents percentage
10000-50000 23 46%
50000-100000 15 30%
100000-150000 08 16%
Above 150000 04 08%
50

41
 Chart Title

25

20

15

10

0
10000-50000 50000-100000 100000-150000 above-150000

Interpretation:

46% of the respondents invest 10000-50000

30% of the respondents invest 50000-100000
16% of the respondents invest 100000-150000
8% of the respondents invest above 150000

Inference:

From the above survey most of the respondents invest between 10000-50000 in stock
market

42
5.how much return you get after investing?

Respondents percentage
Below 5% 10 20%
5-10% 27 54%
10-15% 09 18%
15-20% 04 08%
TOTAL 50

43
 30

25

20

15

10

0
below 5% 5-10% 10-15% 15-20%

Interpretation:

20% of the respondents get below 5%

54% of the respondents get 5-10%
18% of the respondents get 10-15%
8% of the respondents get 15-20%

Inference:

From the above survey most of the respondents get 5-10% return on their investment.

44
6. what according to you is your risk level?

RESPONDENTS PERCENTAGE
Highly risk 05 10%
Average 27 54%
Moderate 09 18%
Risk free 09 18%
TOTAL 50

45
 Sales

highly risk
risk free 10%
18%

moderate
18%

average
54%

Interpretation:

10% of the respondents are highly risky

54% of the respondents are average
18% of the respondents are moderate
18% of the respondents are risk free

Inference:

From the survey most of the respondents are average risk takers
46
7. which mode of trading do you prefer?

respondents percentage
Online 19 38%
Offline 31 62%
TOTAL 50

47
 ofline

online

0 5 10 15 20 25 30 35

Interpretation:

38% of the respondents prefer online

68% of the respondents prefer offline

Inference:
48
From above survey most of the respondents prefer offline trading as they are new to
stock market

8. what has been your investment experience in stocks?

respondents percentage
Excellent 05 10%
Good 12 24%
Average 20 40%
Bad 13 26%
TOTAL 50
49
 bad
26% excellent
10%

good
24%

average
40%

Interpretation:

10% of the respondents feel excellent

24% of the respondents feel good
40% of the respondents feel average
26% of the respondents feel bad

Inference:

50
From the above survey 40% of the respondents have average investment experience
at stock market

9. what extra services do you expect from your broker?

respondents percentage
Depositary 2 4%
Marginal financing 4 8%
P.M.S 7 14%
Trading 9 18%
Research 9 18%
All the above 19 38%
TOTAL 50
51
 20

18

16

14

12

10

0
depositary marginal financing P.M.S trading research all the above

Interpretation:

4% of the respondents prefer depositary service

8% of the respondents prefer marginal financing
14% respondents prefer P.M.S
18% respondents prefer trading
18% respondents prefer research
38% of the respondents prefer all the above services

52
Inference:

From the above survey most of the respondents prefer all the services that any broker
must provide to its clients

10.Are you satisfied with the service of your broker house?

respondents percentage
Yes 27 54%
No 5 10%
Can’t say 18 36%
TOTAL 50

53
 Sales

can't say
36%

yes
54%

no
10%

Interpretation:

54% of the respondents say yes

10% of the respondents say no
36% of the respondents say can’t say

Inference:

From the above survey 54% of the respondents are satisfied with service of their
broker house.

54
11.Rate the service according to your criteria

respondents percentage
Excellent 5 10%
Very good 15 30%
Good 21 42%
Poor 9 18%
TOTAL 50
55
 25

20

15

10

0
excellent very good good poor

Interpretation:

10% of the respondents say excellent

30% of the respondents say very good
42% of the respondents say good
18% of the respondents say poor

Inference:

From the above survey most of the respondents rate good to services provided by
their broker house.

56
12.Have you heard of religare securities?

respondents percentage
Yes 44 88%
No 6 12%
TOTAL 50

57
 no
12%

yes
88%

Interpretation:

88% of the respondents know religare securities

12% of the respondents don’t know about religare securities

Inference:

From the above survey most of the respondents know religare securities

58
13.If yes then specify

Respondents percentage
Friends 17 34%
newspaper 19 38%
T.V 10 20%
Other 4 8%
total 50

59
 20

18

16

14

12

10

0
friends newspaper T.V other

Interpretation:

34% of the respondents say friends

38% of the respondents say newspaper
20% of the respondents say T.V.
8% of the respondents say other

Inference:

From the above survey most of the respondents say newspaper as the source of
information about religare securities

60
My Experience at Religare Securities

I was in Marketing & Sales section under the guidance of Mr. Anurag srivastava (Branch
Manager), and Mr.Prassana mishra. My job was to emplane the share trader with our company. I
basically target those people who are sub-broker but along with this I also target those people who
are active traders and also those people who are new to this sector.
My job was to first generate the lead then contact with them then explain the whole concept to
convince them to join our organization. I have to collect the Trading Form and a Cheque of 5,00 Rs
from them. It help me lot in enhancing my communication skills and my relationship building
attitude. It was totally a field job and I really enjoy working with boss and other employees who are
also very cooperative.

61
FINDINGS:
In this survey most of the questionnaires are filled from brokerage houses where clients sit on the
terminal & trade in the stocks. As the data collected shows that people who mostly invest in the
market are businessmen & service class person who don’t have enough time to keep continuous
watch on the market fluctuation so they need regular assistance from their relationship manager
who is assigned to them so every company is suggested to enforce their relationship managers to
stay in contact with their clients. There are some No answer in this survey because many time
clients may be with his friend who don’t trade in the market & that friend might be interested or not
do the relationship manager in that brokerage firm must take some extra care for them. Here
difference is because of the presence of the friend of client in the brokerage house who doesn’t want
to trade in the stock market because he might be afraid of losses or due to lack of resources. But if
that friend has lack of time than the relationship manager has to give a proper assistance
&dedication to that person so that friend can make himself to trade in the stocks. As technology
increases most of the people have less time to spend on the other activities than their core business
so most of the clients prefer online trading so they can put their bids whenever they want as 24*7.
In the case of online trading clients are not need to be provided any kind of assistance from their
relationship manager but if the dedicated relationship manager provide them a good assistance can
put that relationship manager & that organization apart from their competitors. But even after the
presence of internet some people like to trade through offline mode reasons might be lack of
knowledge or cost sensitive as offline product is used to being at lower cost so here in offline that
dedicated relationship manager has to be in contact with his client. Most of the people look for
moderate return because of presence of risk well as the age group changes the risk-taking factor as
age increase people started investing in bonds where a fixed return is possible. As the data shows
most of the people were satisfied with their brokers because they are giving them profits on their
investment & they were ready to pay more to their brokers if they get some extra services.

Limitation of the study:-

62
 Time spent in terms of data collection was less as most of the time we are busy to
complete our target
 Non availability of related people.
 Awareness level about the company is very low among the clients.
 Market was too volatile during the period of research.
 Sample size is small so sampling error may be committed.

Conclusion

63
In spite of the bleak and grim outlook the future of capital market it is growing at a very high pace.
Taking this things into consideration there are lots of opportunity for the Broker House which
already exist and which are due to enter in the Indian market. These are little awareness about
Equity and Mutual funds in India people have accepted it as one of the major investment avenue.
As people have entered in this particular investment avenue they have lost there money because of
movement in the market which is below the par value and this has shaken the faith of investor in
this particular avenue. Another reason for low investment in this sector is due to country most of the
companies not performing well and also due to the scams that are taking place frequently Once
people know about the benefit offered by it, Capital market will become one the sought after
investment avenue. As far as other product marketed by Religare is concerned they have a ready
market. The only thing which is needed to focus on is that they should have a strong marketing
strategy so that prompt service and availability of forms is made available to the investors at a short
notice and if it keeps the traditional base for marketing in India which is a price sensitive. We can
say that Religare has a great future ahead. Religare has emerged a very strong player in the field of
distribution of financial product within a short period of one year in Northern India and is giving
stiff competition to the entire player in the Varanasi & other parts. If the progress of Religare goes
in the same way then I can say that Religare will going to emerge as a major player in the Capital
market. They have much more potential to expand there business and market in India.

Recommendation:

The Recommendation which is to be suggested is as follow:-

64
Religare securities should enhance the customer care department where queries can be timely
solved.

Religare securities should provide more security to the existing and prospective clients

Religare securities should build its BRAND Image more strong by increasing visibility

There should be more banners posters pamphlets distribution in the market to increase the
awareness level among the people

It should provide regular and update market information

Special attention need to be given to the delivery of monthly & fortnightly report to the
Clients

Timely release of Brokerage & Fast redressed of clients grievance is a major plus if
Religare is looking to develop long term relationship with its clients

Services should be more efficiently delivered to the prospective clients in order to

develop a long term relationship with the clients.

ANNEXTURE

QUESTIONNARE

1. In which professions are you engaged in?

65
 a. Business
b. Service
c. Professional
d. Entrepreneur

2. Do you trade in stock market?

a. Yes
b. No
c. Earlier,
d. But now Stopped

3. How much is your income or your Credibility?

a. Between 1 lac to 2 Lac

b. Between 2 Lac to 3 Lac
c. Between 3 lac to 4lac
d. Above 4 lac

4. How much you trade in stock Market?

a. 10,000 – 50,000
b. 50,000 – 1, 00,000
c.1,00,000 – 1, 50,000
d. Above 1, 50,000

5. How much Return you Get after Investing?

a. > 5 %
b. 5 – 10 %
c. 10 – 15 %

66
 d. 15 – 20 %

6. What according to you is your risk level?

a. Highly Risky
b. Average
c. Moderate
d. Risk free

7. Which mode of trading do you prefer?

a. Online trading
b. Offline trading

8. What has been your investment experience in stocks?

a Excellent
b.Good
c. Average
d. Bad

9. What extra services do you expect from your broker?

a. Depository services
b. Margin financing
c. Portfolio management services
d. Trading
e. Research and Technical services
f. All of t

10. Are you satisfied with the service of your Broker House?

a. Yes

67
 b. No
c. Can’t Say

11. Rate the service according to your Criteria

a. Excellent
b. Very Good
c. Good
d. Poor

12. Have you heard of Religare Securities?

a. Yes
b. No

13. If Yes then Specify?

a. Friends
b. News Paper
c. T.V
d. Other

BIBLIOGRAPHY

 Websites:

68
http://www. religare securities .com
http://www.nseindia.com

http://www.indiainfoline.com

69