Declaration of Originality

I declare that this report is original based on my own work and that report or any part there of
has not been submitted by me for any other degree or course requirement. All reference has
been duly acknowledged.

Signature of Student :
Name :
Batch :
Institute name and place :
Date :
 Certificate
This is to certify that Vikash Kumar is a bonafied student of the Two-year Full Time Bachelor of
Business Administration at Dr. RMLI, Modinagar. I further certify that he has worked with my
help apart form company guidance in preparing this report, as part of the requirement for the
fulfillment of the said programmed. The reports entitled to the Financial Services in Reliance
Money is his genuine and original work.

Mr. KAPIL MITTAL

(Branch Manager)
 ACKNOWLEDGEMENT

To accomplish a project it involves a lot of effort and contribution from a number of

people. It is thus an opportunity for us to thanks those people who have helped us
generously in the completion of this project.
Exchange of ideas generates a new object to work in a better way. Apart from
the ability, labour and time devotion, guidance and cooperation are the two pillars
for the success of the project, whenever a person is helped or cooperated by others
his heart is bound to pay gratitude to them.
In the chain we are immensely thankful and convey our sincere gratitude to
our project guide “Mr. Kapil Mittal, Branch Manager, Meerut” for his guidance,
constant inspiration and keen interest shown on us during the project. We deliberate
our profound sense of gratitude to him.
We are also highly indebted to “Dr. Arun Kumar (Director, MCAT,
Meerut)” for being the unfailing source of encouragement at pivotal juncture and
fruitful guidance helped us in completions of this project.

FARUKH HASAN
Simply open a Reliance Money account and enjoy the convenience of
handling all your key financial transactions through this single window.

CONTENTS
CHAPTER 1

 ACKNOWLEDGEMENT

 EXECUTIVE SUMMARY

 PREFACE

CHAPTER 2

 INTRODUCTION
 OBJECTIVE OF THE PROJECT
 METHODOLOGY
 SWOT ANALYSIS

CHAPTER 3

 RELIANCE GROUPS
 COMPANY PROFILE
 DEMAT
 PRODUCT OF RELIANCE MONEY
CHAPTER 4

 RELIANCE PRODUCT DESCRIPTION

1. EQUITY
2. MUTUAL FUND
3. INTIAL PUBLIC OFFER
4. INSURANCE
5. DEMAT

CHAPTER 5

 WORK DONE BY US
 ACHVIEVEMENT & SUGGESTIONS
 CONCLUSION
 REFERANCE
 BIBLIOGRAPHY
 ACKNOWLEDGMENT

Time is the most important element in every aspect of life. The person who does not
give importance to time cannot succeed in life .So for the timely completion of the
project we owe our thanks to all the individuals who Contributed in the successful
completion of the project from very beginning till it’s successful completion.

Summer training needs a lot of dedication concentration and hard work of the students
and also it should be garnished with the topping of good guidance. I am deeply indebt to
all of them for excellent ideas and assistance.

I express my deep sense of gratitude to “Mr. Abhinav Tyagi (CM) who spared his
precious time and gave me advice whenever I needed. I do extend my thanks to all other
corporate staffs that helped me in the completion of this project.
 EXECUTIVE SUMMARY
COMPANY : RELIANCE MONEY LTD.

COMPANY GUIDE : Mr. Abhinav Tyagi (Center Manager)

GROUP MEMBER : Minakshi Bansal

PROJECT TITLE
“Financial Services or Products in Reliance Money”

UNDERTAKEN AT:

RELIANCE MONEY
C-276 RDC
RAJNAGAR
GHAZIABAD

PREFACE
Summer training is a major part of the management programs because it provides
lots of practical knowledge as well as organizational experience. This pre-exposure
of the market becomes very necessary in order to form a position as well as to
sustain in the corporate world.

Productive utilization of various resources is the need of time. Organization

Functioning consists of three broad identifiable elements i.e. INPUTS,
TRANSFORMATION PROCESS and OUTPUTS. How inputs are converted into
outputs depends on the purpose of the organization, achievements of that Purpose
through technology Management.

The project report has been designed to meet the requirement of the investors as
well as Spectators; who wish only to obtained better return with the current situation.
An attempt therefore has been made to find golden mean between today dreams
and Tomorrow’s reality. hence project report consists purpose and scope of
Investment as well as various precise negative aspects, that harms to Investors. It
will give a broad view of investment plan as well as investors Perception and related
issues. The project will help the organization related to stock market, mutual
funds as well as investors and me by different ways. Through this project investors
will be able to know about different Investment strategies of investment and

organization (related to investment) will be able to know the precise aspects that will
increase the investor’s faith and decrease the risk of investors.
Being Management student I will be able to manage various aspects while
undergoing in my professional life after doing this project as a part of my internship.
OBJECTIVE
The objective of the project is to proper maintaining the MIS of reliance money
investments in IPO’s, MF, Equity, Derivatives (Future & Options), PS,
Insurance, and Demat through Reliance Money Ltd.

There by understand all the Reliance Products, the requirement of the corporate
and general person to suggest for Demat based on their requirement.

The objective of the project is also to know about a best maintaining the Reliance
Products.

RESEARCH METHODOLOGY
Research Methodology is a way to systematically solving the research problem. It
may be understood as a science of studying how research is done scientifically.
Here we talk of Research Methodology we not only talk of Research Methods
adopted to get the desired results but also consider the logic behind these
methods.

RESEARCH DESIGN
The Research Design is that conceptual structure with in which research is
conducted it constitute the blue print for the collection, measurement and
analyses of data. In this research descriptive research design is used because my
research is concerned with maintaining Reliance Product (IPO’s, MF, Equity,
Insurance, and Demat)

SWOT ANALYSIS OF STOCK MARKET

STRENGTH

 Stock market or mutual fund gives more return than any other deposit
 Scheme like bank deposits or monthly deposit in post office. company fixed
deposits and other small savings conducted by government.

WEAKNESS

 Market is very flexible and risky. So people who have much idea about the
market may lose their money.

OPPORTUNITY

 Current economic situation and monetary policy of government gives

Strength to the stock market so it gives opportunity to investors to invest
their money in stock market.

THREAT

 Banks and post offices and other investment schemes are attack on market
potential of stock market.
Reliance Groups
Looking back, looking forward
Reliance – Anil Dhirubhai Ambani Group, an offshoot of the Reliance
Group founded by Shri Dhirubhai H Ambani (1932-2002), ranks among
India’s top three private sector business houses in terms of net worth. The
group has business interests that range from telecommunications
(Reliance Communications Limited) to financial services (Reliance Capital
Ltd) and the generation and distribution of power (Reliance EnergyLtd).

Reliance – ADA Group’s flagship company, Reliance Communications, is

India's largest private sector information and Communications Company,
with over 30 million subscribers. It has established a pan-India, high-
capacity, integrated (wireless and wire line), convergent (voice, data and
video) digital network, to offer services spanning the entire infocomm value
chain.
Other major group companies — Reliance Capital and Reliance Energy — are
widely acknowledged as the market leaders in their respective areas of operation.

Reliance Energy Ltd. Reliance Mutual Fund

Harmony Reliance Communications

Reliance General Insurance Reliance Anil Dhirubhai Ambani Group

   
THE MAN WHO WOULD BE PRINCE: 'Dhirubhai will go one day. But Reliance's
employees and shareholders will keep it afloat. Reliance is now a concept in which the Ambanis
have become irrelevant,' said Dhirajlal Hirachand Ambani, arguably India's greatest entrepreneur
ever, years before his death on July 6, 2002.

His words have proved prophetic, as the Reliance juggernaut keeps rolling on towards
excellence.

Dhirubhai rose from humble beginnings to found India's largest industrial empire and, in the
process, became one of the world's richest men. He transformed the way big business operates
and thinks in India. His death marked the end of a golden era in Indian entrepreneurship, but his
values continue to guide the Reliance group, now run by his two sons, Mukesh and Anil
Ambani.

Dhirubhai Ambani was born on 28 December 1932at Chorwad, Junagadh in the now state of
Gujarat, India. He worked as a dispatch clerk with A. Besse & Co. Two years later A. Besse &
Co. became the distributors for Shell products and Dhirubhai was promoted to manage the
company’s oil-filling station at the port of Aden.

He was married to Kokilaben and had two sons, Mukesh Ambani and Anil Ambani, and two
daughters, Nina Kothari and Deepti Salgaoncar. He also worked in Dubai for some time during
his early years

Ten years later, Dhriubahi returned to India and started the Reliance Commercial Corporation
with a capital of Rs. 15,000.00. The primary business of Reliance Commercial Corporation was
to import polyester yarn and export spices.

The business was setup in partnership with Champaklal Damani, his second cousin, who used to
be with him in Aden, Yemen. The first office of the Reliance Commercial Corporation was set
up at the Narsinathan Street in Masjid Bunder. It was a 350 Sq. Ft. room with a telephone, one
table and three chairs. Initially, they had two assistants to help them with their business. In 1965,
Champaklal Damani and Dhirubhai Ambani ended their partnership and Dhirubhai started on his
own. It is believed that both had different temperaments and a different take on how to conduct
business. While Mr. Damani was a cautious trader and did not believe in building yarn
inventories, Dhirubhai was a known risk taker and he considered that building inventories,
anticipating a price rise, and making profits through that was good for growth.

During this period, Dhirubhai and his family used to stay in one bedroom apartment at the
Jaihind Estate in Bhuleshwar. Mumbai.In 1968, he moved to an upmarket apartment at
Altamount Road in South Mumbai

Sensing a good opportunity in the textile business, Dhirubhai started his first textile mill at Naroda,
near Ahmedabad in the year 1966. Textiles were manufactured using polyester fibre yarn.
Dhirubhai started the brand "Vimal", which was named after his elder brother Ramaniklal
Ambani's son, Vimal Ambani. Extensive marketing of the brand "Vimal" in the interiors of India
made it a household name. Franchise retail outlets were started and they used to sell "only Vimal"
brand of textiles. In the year 1975, a Technical team from the World Bank visited the Reliance
Textiles' Manufacturing unit. This unit has the rare distinction of being certified as "excellent even
by developed country standards" during that period

Dhirubhai Ambani is credited with starting the equity cult in India. More than 58,000 investors
from various parts of India subscribed to Reliance's IPO in 1977. Dhirubhai was able to
convince people of rural Gujarat that being shareholders of his company will only bring returns
to their investment.

Reliance Industries holds the distinction that it is the only Public Limited Company whose
several Annual General Meetings were held in stadiums. In 1986, The Annual General Meeting
of Reliance Industries was held in Cross Maidan, Mumbai and was attended by more than
35,000 shareholders and the Reliance family.

Dhirubhai managed to convince a large number of first-time retail investors to participate in the
unfolding Reliance story and put their hard-earned money in the Reliance Textile IPO,
promising them, in exchange for their trust, substantial returns on their investments
 .

In 1982, Reliance Industries came up against a rights issue regarding partly convertible
debentures. It was rumored that company was making all efforts to ensure that their stock prices
did not slide an inch. Sensing an opportunity, a bear cartel which was a group of stock brokers
from Calcutta started to short sell the shares of Reliance. To counter this, a group of stock
brokers till recently referred to as "Friends of Reliance" started to buy the short sold shares of
Reliance Industries on the Bombay Stock Exchange.

The Bear Cartel was acting on the belief that the Bulls would be short of cash to complete the
transactions and would be ready for settlement under the "Badla" trading system prevalent in
Bombay Stock Exchange during those days. The bulls kept on buying and a price of Rs. 152 per
share was maintained till the day of settlement. On the day of settlement, the Bear Cartel was
taken aback when the Bulls demanded a physical delivery of shares. To complete the
transaction, the much needed cash was provided to the stock brokers who had bought shares of
Reliance, by none other than Dhirubhai Ambani.

In the case of non-settlement, the Bulls demanded an "Unbadla" (a penalty sum) of Rs. 35 per
share. With this, the demand increased and the shares of Reliance shot above 180 rupees in
minutes. The settlement caused an enormous uproar in the market and Dhirubhai Ambani was
the unquestioned king of the stock markets. He proved to his detractors just how dangerous it
was to play with Reliance.

The situation was getting completely out of control. To find a solution to this situation, the
Bombay Stock Exchange was closed for three business days. Authorities from the Bombay
Stock Exchange intervened in the matter and brought down the "Unbadla" rate to Rs. 2 with a
stipulation that the Bear Cartel had to deliver the shares within the next few days. The Bear
Cartel bought shares of Reliance from the market at higher price levels and it was also learnt that
Dhirubhai Ambani himself supplied those shares to the Bear Cartel and earned a healthy profit
out of The Bear Cartel's adventure.
After this incident, many questions were raised by his detractors and the press. Not many people
were able to understand as to how a yarn trader till a few years ago was able to get in such a
huge amount of cash flow during a crisis period.

The answer to this was provided by the then finance minister, Pranab Mukherjee in the
parliament. He informed the house that a Non-Resident Indian had invested up to Rs. 220
Million in Reliance during 1982-83.

These investments were routed through many companies like Crocodile, Lota and Fiasco. These
companies were primarily registered in Isle of Man. The interesting factor was that all the
promoters or owners of these companies had a common surname Shah. An investigation by the
Reserve Bank of India in the incident did not find any unethical or illegal acts or transactions
committed by Reliance or its promoters

Dhirubhai Ambani was admitted to the Breach Candy Hospital in Mumbai on June 24, 2002
after he suffered a major "brain stroke". This was his second stroke, the first one had occurred in
February 1986 and had kept his right hand paralyzed. He was in a state of coma for more than a
week. A battery of doctors were unable to save his life. He breathed his last on July 6, 2002, at
around 11:50 P.M. (Indian Standard Time).

His funeral procession was not only attended by business people, politicians and celebrities but
also by thousands of ordinary people. His elder son, Mukesh Ambani, performed the last rites as
per Hindu traditions. He was cremated at the Chandanwadi Crematorium in Mumbai at around
4:30 PM (Indian Standard Time) on July 7, 2002.

He is survived by Kokilaben Ambani, his wife, two sons, Mukesh Ambani and Anil Ambani,
and two daughters, Nina Kothari and Deepti Salgaonkar.

Dhirubhai Ambani started his long journey in Bombay from the Mulji-Jetha Textile Market,
where he started as a small-trader. As a mark of respect to this great businessman, The Mumbai
Textile Merchants' decided to keep the market closed on July 8, 2002. At the time of Dhirubhai's
death, Reliance Group had a gross turnover of Rs. 75,000 Crore or USD $ 15 Billion. In 1976-
77, the Reliance group had an annual turnover of Rs 70 crore and Dhirubhai had started the
business with Rs.15,000(US$350)

The country has lost iconic proof of what an ordinary Indian fired by the spirit of enterprise and
driven by determination can achieve in his own lifetime. .

The nation had lost one of the doyens of the modern Indian corporate community, a
philanthropist and above all a great human being endowed with great compassion and concern
for the underprivileged sections of the society...

This new star, which rose on the horizon of the Indian industry three decades ago, remained on
the top till the end by virtue of his ability to dream big and translate it into reality through the
strength of his tenacity and perseverance

I join the people of Maharashtra in paying my tribute to the memory of Ambani and convey my
heartfelt condolences to the bereaved family.
 Chairman's Profile

Anil Ambani (born June 4, 1959) is an Indian businessman. As of March 2007, he has a net-
worth of US$ 18.2 billion, making him the 18th richest person in the world. His was the world's
fastest-growing multi-billion-dollar fortune in percentage terms as his wealth tripled in 1 year.
Ambani is chairman of Reliance Capital, Reliance Communications and Chairman & Managing
Director, Reliance Energy, and was formerly Vice Chairman and Managing Director of Reliance
Industries Limited. His personal stake in Reliance Communications is 66%.. Reliance group is
India's largest business house, founded by Anil's late father Dhirubhai Ambani (1938-2002). His
mother is Kokilaben Ambani. He is married with 2 sons: Jai Anmol and Jai Anshul.

The total investors' wealth in the four Anil Ambani Group firms -- Reliance Communications
(RCOM), Reliance Capital (RCL), Reliance Energy (REL) and Reliance Natural Resources Ltd
(RNRL) has reached 1,42,384 crore rupees, while total promoter holding is estimated at about
Rs 87,000 crore. Anil's wealth comes mostly from his over 65 per cent stake in RCOM, which
has a market cap of about Rs 1,03,000 crore. He also has over 50 per cent in RCL (market cap of
Rs 24,000 crore), 35 per cent in REL (market cap of Rs 12,700 crore) and close to 54 per cent in
RNRL, which has a market cap of about Rs 2,600 crore..
Ambani holds a Bachelor of Science degree from the University of Bombay and an MBA degree
from The Wharton School at the University of Pennsylvania. Currently, he serves as a member
of the Wharton Board of Overseers.

Ambani joined Reliance in 1983 as Co-Chief Executive Officer and is credited with having
pioneered many financial innovations in the Indian capital markets. For example, he led India's
first forays into overseas capital markets with international public offerings of global depositary
receipts, convertibles and bonds. He directed Reliance in its efforts to raise, since 1991, around
US$2 billion from overseas financial markets; with a 100-year Yankee bond issue in January
1997 being the high point. After which people regarded him as a Financial Wizard. He has
steered the Reliance Group to its current status as India's leading textiles, petroleum,
petrochemicals, power, and telecom company.

Anil is the member of Uttar Pradesh Development Council. He is also the Chairman of Board of
Governors of DA-IICT, Gandhinagar and a member of the Board of Governors of the Indian
Institute of Technology, Kanpur. He is member of the Board of Governors, Indian Institute of
Management, Ahmedabad. He is also a member of the Central Advisory Committee, Central
Electricity Regulatory Commission. In June 2004, Anil was elected as an Independent Member
of the Rajya Sabha - Upper House, Parliament of India with the support of the Samajwadi Party.
In March 2006, he resigned.

He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute of Information and
Communication Technology, Gandhi Nagar, Gujarat.
Till recently, he also held the post of Vice Chairman and Managing Director in Reliance Industries
Limited (RIL), India’s largest private sector enterprise.

Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally involved
in every aspect of the company’s management over the next 22 years.
He is credited with having pioneered a number of path-breaking financial innovations in the Indian
capital markets. He spearheaded the country’s first forays into the overseas capital markets with

international public offerings of global depositary receipts, convertibles and bonds. Starting in
1991, he directed Reliance Industries in its efforts to raise over US$ 2 billion. He also steered the
100-year Yankee bond issue for the company in January 1997.

He is a member of:
 Wharton Board of Overseers, The Wharton School, USA
 Central Advisory Committee, Central Electricity Regulatory Commission
 Board of Governors, Indian Institute of Management, Ahmedabad
 Board of Governors Indian Institute of Technology, Kanpur
 In June 2004, he was elected for a six-year term as an independent member of the Rajya
Sabha, Upper House of India’s Parliament a position he chose to resign voluntarily on
March 25, 2006.

Awards and Achievements :

 Conferred the ‘CEO of the Year 2004’ in the Platts Global Energy Awards

 Rated as one of ‘India’s Most Admired CEOs’ for the sixth consecutive year in the
Business Barons – TNS Mode opinion poll, 2004

 Conferred ‘The Entrepreneur of the Decade Award’ by the Bombay Management

Association, October 2002
  Awarded the First Wharton Indian Alumni Award by the Wharton India Economic Forum
(WIEF) in recognition of his contribution to the establishment of Reliance as a global
leader in many of its business areas, December 2001

 Selected by Asia Week magazine for its list of ‘Leaders of the Millennium in Business and
Finance’ and was introduced as the only ‘new hero’ in Business and Finance from India,
June 1999

ABOUT RELIANCE MONEY

The Late Dhirubhai Ambani dreamt of a digital India — an India where the common man
would have access to affordable means of information and communication. Dhirubhai, who
single-handedly built India’s largest private sector company virtually from scratch, had stated
as early as 1999: “Make the tools of information and communication available to people at an
affordable cost. They will overcome the handicaps of illiteracy and lack of mobility.”

It was with this belief in mind that Reliance Communications (formerly Reliance Infocomm)
started laying 60,000 route kilometers of a pan-India fibre optic backbone. This backbone was
commissioned on 28 December 2002 the auspicious occasion of Dhirubhai 70th birthday,
though sadly after his unexpected demise on 6 July 2002.

Reliance Communications has a reliable, high-capacity, integrated (both wireless and wire
line) and convergent (voice, data and video) digital network. It is capable of delivering a range
of services spanning the entire infocomm (information and communication) value chain,
 including infrastructure and services — for enterprises as well as individuals, applications,
and consulting.

Today, Reliance Communications is revolutionizing the way India communicates and

networks, truly bringing about a new way of life.

DEMAT

Online stock trading is very old concept for big institutions who trade through private
networks system called "Posit" since 1969. But It become internet based for lay men only in
late 90s.The idea was first time used by a company making Beer called "WIT beer" to help
its shareholders trade its shares. “WIT Capital" was born which is considered pioneer of this
concept.

In India this concept take a big face since 90s when India opened its door for foreign players.
In 90s there was no such type of online facility to trade with shares and securities. Investors
take help through brokers of stock exchange like BSE & NSE (Now 24 stock exchanges are
available in India). They inform to their clients through phone or letters. Now it seems to be
very difficult without internet. In 90s there were few players in this industry but now there
are number of players available in this dynamic industry. This online concept came to make
trade hassle free for the customers.

There are number of players like ICICI Direct.com, India info line

India bulls, Share khan, 5paise.com etc. All this companies ask to potential clients to start
account with a reasonable fee and open a trading A/C to buy and sell stock through online.
They also issue a check book which can use to make payments from this account. Or use
their ATM card to withdraw cash from stock trading account.
Today practically every big name brokerage firm offers online stock trading as it reduces
their costs. Earlier they had army of brokers on phone with clients executing trade now that
is done by computers.

Accepting orders from clients directly. These firms now offer human access to high net
worth accounts and to rest at charge per trade.

In last 2 year in India we have seen lot of developments in this, good and bad, successful and
not so successful. RELIANCE MONEY is particularly very attractive to users as it combines
3 segments of transactions, i.e., bank account; demat account and stock trading account.
RELIANCE being the owner of all the three services they are all very well integrated. Other
player's have tie-ups with Banks and Depository's but it’s not same as seeing all three in one
webpage.

One thing which potential client should pay attention to is, agreement with broker, how it
defines risks of hacking and who bears it.

In India, because of tendency of consumers of not looking at agreements carefully and

companies also believe in passing all costs/risks to consumers and retain profits for
themselves. Hence most online bank accounts and stock trading accounts agreements
clearly mention that bank/broker is not liable for any loss leading from hacking of the
account.

In this situation smart person would avoid using this services. Brokers and Banks benefit
tremendously when you use them via web and not call them on phone, but most people are
not aware of this, they try to create impression as if they re doing "favor" to us when
offering us web based bank/brokerage account access.
Reliance-Schemes

The easiest, fastest and most convenient way to carry out your financial transactions is now at your
fingertips!

Reliance Money offers you the widest range of asset classes to trade in: Equity, Derivatives,
Commodities and Offshore Investment. Also invest on-line in Mutual Funds, IPO’s and
Insurance products (Life & General). All this through one single window.

Reliance Money is a state-of-the-art financial transaction platform, which enables you to

conduct your financial transactions in cost effective, convenient and secure manner. Reliance
Money has introduced several never – before features and thereby changed the way you will
invest:

1. Flat Fees instead of Brokerage - Put your money into investments, not into brokerage. It’s
never happened before anywhere in the world!

Pay a flat fee of Rs. 500/- and transact as much you want up to Rs. 1 crore or for 2 months
(whichever is earlier).

Pay a flat fee of Rs. 1350/- and transact as much you want up to Rs.3 crore or for 6 months
(whichever is earlier).

Pay a flat fee of Rs. 2500/- and transact as much you want up to Rs. 6 crore or for 12 months
(whichever is earlier).

Pay a flat fee of Rs.500/- and transact as much you want up to Rs. 5 lakhs or for 12 months
(whichever is earlier).
2. Trading Kiosks - No matter if you don’t have access to a computer or the Internet. You will
find exclusive Reliance Money Trading Kiosks at convenient locations throughout your city.
These internet-enabled Kiosks bring the market to you, wherever you are.

3. Security Token - The Reliance Money security token is so hi-tech, it almost defies belief.
This small, portable plastic device flashes a unique number that changes every 32 seconds,
ensuring that the number used for an earlier transaction is discarded. This number works over
and above your normal login and password, serving as a third level of protection that guarantees
your account total safety.

4. Dial N Trade - You don’t have to access your computer to trade or invest. With our Call N
Trade facility, you can place orders over the phone.

5. Multiple Offerings - Along with equity, you can also trade / invest in Commodities (gold,
silver, base metals and other agri commodities to name a few), Derivatives, Offshore Investment
(RBI allows you to remit US$ 50,000 per calendar year), Mutual Funds, IPO’s and Insurance
products (Life & General).

6. Widest Network: Reliance Money has a network of branches all over the country with
associates who will assist you with your financial investment requirements.

7. Other value - added Services: -Reliance Money provides:

Research, market views and stock views from independent experts, with an enviable track record

CEOs’ / experts’ views on economy and the financial market

Personal Finance planning tools that help you plan your investments, retirement, tax etc.

Portfolio Tracker that will help you track your investments from one single screen
Risk Analyzer to analyze e your risk profile and get a suitable investment portfolio plan using
our Asset Allocate.

Knowledge Centre will help you understand investing and trading basics and also delve into
advanced concepts like trading strategies

Market Watch, a unique tool that will help you tracks your favorite companies. Just configure it
and get real time quotes, news, views, results etc. Our technology allows you to detach it from
the main screen and place it on your desktop.

BENEFITS OF RELIANCE MONEY

The following are the benefits of using our 3 in 1 account

 India’s largest online trading site, by no. of clients, transactions and products.
 Among the top 5 online broker’s in the World, based on number of daily trades
 Completely integrated offering of bank, demat and brokering services coupled
with Security Tokan give an end-to-end online offering.
 Safe and secure transaction capabilities with Secured Socket Layer (SSL) with 128 bit
encryption
 Host of content and Research online with access to data on over 5000 companies.
 No delay in payout of funds. Funds paid out on the same day of exchange pay-out
 APPLICATION APPLICANT PHONE/ PHONE/ Franchisee CHQ BANK
S.No. Date NO NAME MOB NO. MOB NO. NAME NO. NAME
Nand
Preeti Kishore ICICI
1 07/02/2007 332390 Sahu 9450272593 Sharma Ghaziabad 333769 Bank
Surinder Canara
2 07/02/2007 334134 Kaur 9837145135 Simran Ghaziabad 790613 bank
Sudhir Davendra
Kumar Kumar icici
3 07/02/2007 334128 Bansal 9313775770 Agerwal Ghaziabad 635483 bank
Vinod Davendra
Kumar Kumar
4 07/02/2007 334129 Yadav 9810055345 Agerwal Ghaziabad 95492 Uti Bank
Ram
Prakash Sanjay ICICI
5 07/02/2007 327017 Sharma 2719825 Bindal Ghaziabad 632728 Bank
Rajeev
Deepak Verma HDFC
6 07/03/2007 332397 Sharma 9811603455 BD Ghaziabad 731289 Bank
Oriental
Rajeev Bank Of
Dhirendra Verma Commer
7 07/03/2007 332381 Mishra 9811687855 BD Ghaziabad 767461 ce
Oriental
Amit Bank Of
Sharma Commer
8 07/03/2007 334043 Raj Kumar 9868455639 BD Ghaziabad 658818 ce
Reeta
9 07/04/2007 321690 Agarwal 9412715549 sarika Ghaziabad 218571 Uti Bank
Standere
d
Chartere
10 07/04/2007 321688 Anil Gupta 9810069074 sarika Ghaziabad 124126 d Bank
Ridhima Bank Of
11 07/10/2007 322103 Garg 9342137817 sarika Ghaziabad 821074 Baroda
Lekh Raj Praveen UCO
12 07/10/2007 334110 Aneja 9259289767 Arora Ghaziabad 925379 Bank,
Manoj
Kumar Praveen HDFC
13 07/10/2007 334087 Garg 9897303865 Arora Ghaziabad 157601 Bank
Manoj
Kumar
Shukla Dena
14 07/10/2007 326997 Lata Gupta 9811921819 BD Ghaziabad 261938 Bank
Girish
Bal Kumar Punjab
Krishan Jaiswal National
15 07/10/2007 334048 Agarwal 9891290138 BD Ghaziabad 365108 Bank
 Suresh Akansha
16 07/10/2007 326977 Kumar 9911445939 Gupta Ghaziabad 268616 Uti Bank
Vikas IDBI
17 07/11/2007 332392 Bindal 9810776530 sarika Ghaziabad 242403 Bank
Chander Punjab
Shekhar Sanjay National
18 07/11/2007 327003 Sharma 9212246449 Bindal Ghaziabad 608488 Bank
Amit
Nemvati Sharma ICICI
19 07/11/2007 332378 Gautam 9911106447 BD Ghaziabad 393078 Bank
Arun
Prakash
Seema Pathak ICICI
20 07/11/2007 321723 Bansal 9818502133 BD Ghaziabad 390955 Bank
PRODUCTS OFFERE BY RELIANCE MONEY
LTD
The following are the products that are currently being offered on RELIANCE MONEY.

Commodity
Trading
Derivatives (Future
Equity & Options)
Trading

Postal saving Mutual Funds

( NSC& KVP) (MF)
RELIAN
CE Product

Initial Public
GOI Bonds
Offer (IPO)

Life General
Insurance Insurance
 RELIANCE PRODUCT

INITIAL PUBLIC OFFER (IPOs)

An initial public offering (IPO) is the first sale of a corporation's common shares to public
investors. The main purpose of an IPO is to raise capital for the corporation. While IPOs are
effective at raising capital, they also impose heavy legal compliance and reporting requirements.
The term only refers to the first public issuance of a company's shares; any later public issuance
of shares is referred to as a Secondary Market Offering

Procedure

IPOs generally involve one or more investment banks as "underwriters." The company
offering its shares, called the "issuer," enters a contract with a lead underwriter to sell its shares
to the public. The underwriter then approach investors with offers to sell these shares.

A large IPO is usually underwritten by a "syndicate" of investment banks led by one or two
major investment banks (lead underwriter). Upon selling the shares, the underwriters keep a
commission based on a percentage of the value of the shares they sell. Usually, the lead
underwriters, i.e. the underwriters selling the largest proportions of the IPO, take the highest
commissions—up to 8% in some cases.
Because of the wide array of legal requirements, IPOs typically involve one or more law firms
with major practices in securities law. The company will usually issue only primary shares, but
may also sell secondary shares.

Legal requirements
The has the strictest legal regime in the world governing IPOs. Moreover, indian securities law
applies not only to IPOs within the india, but to any IPO in the world that targets or is likely to
target a large number of investors. As a result, many IPOs are structured and timed around legal
requirements, even if they do not actually occur in the country.

Under the law, the IPO process is governed by the Securities Act of 1933 and the regulations of
the Securities and Exchange Commission; each stock exchange has separate rules that listing
companies must follow. Smaller IPOs may also be significantly affected by state laws; these
laws are usually pre-empted by federal law when the stock is to be listed on a major exchange,
but apply fully to certain medium-scale offerings on a local level.

Before the IPO begins in earnest, the issuer must draft a prospectus. The prospectus is a detailed
overview of the company's finances, history, operations, products, risk factors, industry
environment, and other information. The SEC actively polices the content of each IPO
prospectus, and major law firms are usually heavily involved in the drafting process.

Under the Securities Act, until an IPO is registered with the SEC, no public offering of any kind
may be made by the issuer or its underwriters. After filing, the issuer and underwriters may
advertise the IPO through advertisement, listing the name of the company, the amount of stock
being offered, the names of the underwriters, and other basic information. Private placement
discussions and limited press releases are also permitted. Any written offers to sell stock must be
accompanied by a copy of the prospectus as submitted to the SEC, which is usually stamped
with a warning of its non-final status in red letters and therefore called a "RED HERRING
Once the SEC approves the prospectus, the price of the shares is finalized and the IPO enters
a "free riding" period in which shares may be offered for sale in a number of ways, such as
telephone calls, "road shows" and institutional visits. All offers must be accompanied by a copy
of the prospectus. False and misleading statements are strictly prohibited while offering shares
during this period.

The issuer is liable for any misstatement or omission in the prospectus; its directors, officers and
underwriters may also be liable if they fail to undertake a "reasonable investigation," or if they
had reasonable ground to believe the statement was true or the omission was immaterial.
Underwriters may defend against liability by completing a due diligence investigation of the
issuer, usually involving outside lawyers and accountants.

Business cycle

The obvious reason that any company has an IPO is to raise money. Why would a
company need to raise money?

In the business world, there are as many reasons to raise money as you yourself might have. Some
of more common reasons that a company might need money, or capital, include:

 To buy new equipment or upgrade old equipment

 To expand into a new region or a new kind of business
 To pay back old debts (and avoid paying the interest on them)
 As an "exit strategy" for the owner or original investors
 To make the original owners and investors rich
 Upgrading and Expanding
The first two reasons are fairly obvious. Examples could include a bakery that is losing its share of
the marketplace because of the low-carb fad. It could have an IPO to raise capital and buy the
equipment it needs to make low-carb products and stay competitive. Or imagine a trucking
company that is successful shipping along the west coast of the United States -- if it wants to
expand its shipping into the Midwest and southwest, it'll need to buy more trucks, hire more
drivers, and lease more warehouse space. An IPO could pay for all of these things.

Using an IPO to repay debts makes a lot of sense if a large portion of the company's initial
investment came from a bank loan. Every month, the company's profits are eroded by the interest it
has to pay on that loan. There's no interest to pay on the money raised from an IPO; the company
can use that money to repay the loan, and that profit-shrinking interest comes right off the balance
sheet.

Exit Strategy and Financial Windfall

The last two reasons for having an IPO are closely related. When a company is privately owned,
the founders, certain members of the management team (or all the employees, depending on the
company) and private investors who helped fund the company all hold shares in the company.
Those shares will have little value since they aren't publicly traded. After the company's IPO,
those shares can increase in value by a huge margin. In short, anyone who has a lot of those
shares could become very rich by selling them.
 DRAWBACKS OF AN IPO
Having an IPO doesn't mean free money for the company. Otherwise, everyone would have an
IPO. There are drawbacks that come with the new capital raised through an IPO.

The most obvious cost of having an IPO is the expense. It costs money to raise money. The
legal fees, printing costs, and accounting fees associated with registering an IPO can run into the
hundreds of thousands of dollars. On top of those costs, the rules for taking a company public
are so complex that most companies have to hire experts to handle all the paperwork. And once
the IPO has happened, the costs don't end. The SEC regulations on public companies mean that
the CEO of the company will either have to devote a lot of extra time to dealing with those
regulations (plus the demands of profit-hungry shareholders) or hire someone else to do it.

Speaking of shareholders, they are another drawback of going public. The primary owners are
no longer in a private company that can make independent decisions. The investors who
purchased stocks at the IPO own a certain percentage of the business, and their demands cannot
be ignored, even if they don't have a controlling interest (more than 50 percent of the shares) in
the company. SEC regulations require shareholder notification, meetings, and approval for
certain business decisions. Shareholders also want to see the value of their stocks rise, so if the
stock price drops or remains stagnant, the company will have to deal with unhappy part-owners.
If they become unhappy enough, they may sell their stocks, which will cause the value to drop
further, decreasing the overall value of the company.
 MUTUAL FUND
HISTORY OF MUTUAL FUND

The beginning of the mutual fund industry in India can be traced back to 1964 with
the setting up of the Unit Trust of India (UTI) by the Government of India. Since
then UTI has grown to be a dominant player in the industry. UTI is governed by a
special legislation, the Unit Trust of India Act, 1963.

The industry was opened up for wider participation in 1987 when public sector
banks and insurance companies were permitted to set up mutual funds. Since then, 6
public sector banks have set up mutual funds. Also the two Insurance companies
LIC and GIC have established mutual funds. Securities Exchange Board of India
(SEBI) formulated the Mutual Fund (Regulation) 1993, which for the first time
established a comprehensive regulatory framework for the mutual fund industry.
Since then several mutual funds have been set up by the private and joint sectors.
Growth of Mutual Funds

The Indian Mutual fund industry has passed through three phases. The first phase
was between 1964 and 1987 when Unit Trust of India was the only player. By the
end of 1988,UTI had total asset of Rs 6,700 corers. The second phase was between
1987 and 1993 during which period 8 funds were established (6 by banks and one
each by LIC and GIC).This resulted in the total assets under management to grow
to Rs 61,028 crores at the end of 1994 and the number of schemes were 167.

The third phase began with the entry of private and foreign sectors in the Mutual
fund industry in 1993. Several private sectors Mutual Funds were launched in
1993 and 1994. The share of the private players has risen rapidly since then.
Currently there are 34 Mutual Fund organizations in India. Kothari Pioneer Mutual
fund was the first fund to be established by the private sector in association with a
foreign fund.

This signaled a growth phase in the industry and at the end of financial year 2000,
32 funds were functioning with Rs. 1, 13,005 crores as total assets under
management. As on August end 2000, there were 33 funds with 391 schemes and
assets under management with Rs. 1, 02,849 crores. The Securities and Exchange
Board of India (SEBI) came out with comprehensive regulation in 1993 which
defined the structure of Mutual Fund and Asset Management Companies for the
first time.
Usage
Mutual funds can invest in many different kinds of securities. The most common are
cash, stock, and Bonds but there are hundreds of sub-categories. Stock funds, for
instance, can invest primarily in the shares of a particular industry, such as
technology or utilities. These are known as sector funds. Bond funds can vary
according to risk (high yield or junk bonds, investment-grade corporate bonds), type
of issuers (government agencies, corporations, or municipalities), or maturity of the
bonds (short or long term). Both stock and bond funds can invest in primarily US
securities (domestic funds), both US and foreign securities (global funds), or
primarily foreign securities (international funds).

By law, mutual funds cannot invest in commodities and their derivatives or in real
estate. However, there do exist real estate investment trusts, or REITs, which invest
solely in real estate or mortgages, and mutual funds are allowed to hold shares in
REITs. A mutual fund may restrict itself in other ways. These restrictions,
permissions, and policies are found in the prospectus, which every open-end mutual
fund must make available to a potential investor before accepting his or her money.

Most mutual funds' investment portfolios are continually adjusted under the
supervision of a professional manager, who forecasts the future performance of
investments appropriate for the fund and chooses the ones which he or she believes
will most closely match the fund's stated investment objective. A mutual fund is
administered through a parent management company, which may hire or fire fund
managers.

Mutual funds are subject to a special set of regulatory, accounting, and tax rules.
Unlike most other types of business entities, they are not taxed on their income as
long as they distribute substantially all of it to their shareholders. Also, the type
of income they earn is often unchanged as it passes through to the shareholders.
Mutual fund distributions of tax-free municipal bond income are also tax-free to the
shareholder. Taxable distributions can either be ordinary income or capital gains,
depending on how the fund earned it.

WHAT IS MUTUAL FUND?

Mutual Fund is a investment company that pools money from shareholders and nvests in a
variety of securities, such as stocks, bonds and money market instruments. Most open-end
mutual funds stand ready to buy back (redeem) its shares at their current net asset value, which
depends on the total market value of the fund's investment portfolio at the time of redemption.
Most open-end mutual funds continuously offer new shares to investors.

Mutual funds invest pooled cash of many investors to meet the fund's stated investment
objective. Mutual funds stand ready to sell and redeem their shares at any time at the fund's current
net asset value: total fund assets divided by shares outstanding.

In Simple Words, Mutual fund is a mechanism for pooling the resources by issuing units to
the investors and investing funds in securities in accordance with objectives as disclosed in
offer document.
Investments in securities are spread across a wide cross-section of industries and sectors and thus
the risk is reduced. Diversification reduces the risk because all stocks may not move in the same
direction in the same proportion at the same time. Mutual fund issues units to the investors in
accordance with quantum of money invested by them. Investors of mutual funds are known as
unit holders. The profits or losses are shared by the investors in proportion to their investments.

The mutual funds normally come out with a number of schemes with different investment
objectives which are launched from time to time. In India , A mutual fund is required to be
registered with Securities and Exchange Board of India (SEBI) which regulates securities markets
before it can collect funds from the public.

HOW TO INVEST IN MUTUAL FUNDS?

Mutual funds normally come out with an advertisement in newspapers publishing the date of
launch of the new schemes. Investors can also contact the agents and distributors of mutual
funds who are spread all over the country for necessary information and application forms.
Forms can be deposited with mutual funds through the agents and distributors who provide such
services. Now a day, the post offices and banks also distribute the units of mutual funds.
However, the investors may please note that the mutual funds schemes being marketed by banks
and post offices should not be taken as their own schemes and no assurance of returns is given
by them. The only role of banks and post offices is to help in distribution of mutual funds
schemes to the investors.

Investors should not be carried away by commission/gifts given by agents/distributors for

investing in a particular scheme. On the other hand they must consider the track record of the
mutual fund and should take objective decisions.
HOW TO FILL MUTUAL FUND
APPLICATION FORM?
An investor must mention clearly his Name, Address, Number of units applied for and such
other information as required in the application form. He must give his bank account number
so as to avoid any fraudulent encashment of any cheque/draft issued by the mutual fund at a
later date for the purpose of dividend or repurchase. Any changes in the address, bank account
number, etc at a later date should be informed to the mutual fund immediately.

TYPES OF MUTUAL FUNDS   

There are a wide variety of Mutual Fund schemes that can meet your needs. These can be
classified as follows:

A) By Structure

OpenEndedSchemes

No fixed maturity period, schemes are available for subscription and redemption on an ongoing
basis. The units are bought and sold at NAV related prices.

Close-EndedSchemes

Schemes that have a stipulated maturity period (ranging from 2 to 15 years) are called close-
ended schemes.
The investor can invest directly in the scheme at the time of the initial issue and thereafter units of
the scheme can be bought or sold on the stock exchanges where thescheme is listed.

The market price at the stock exchange could vary from the scheme's NAV on account of demand
and supply situation, unit holders' expectations and other market factors

One of the characteristics of the close-ended schemes is that they are generally traded at a discount
to NAV; but closer to maturity, the discount narrows

IntervalSchemes

These combine the features of open-ended and close- ended schemes

They may be traded on the stock exchange or may be open for sale or redemption during pre-
determined intervals at NAV related prices

B) By Objective
GrowthSchemes

These aim to provide capital appreciation over medium to long term. These schemes normally
invest a major part of their fund in equities and are willing to bear short-term decline in value for
possible future appreciation.
They are ideal for: investors in their prime earning years ,investors seeking growth over the long
term Example : Sundaram Growth Fund
IncomeSchemes

These aim to provide regular and steady income to investors. These schemes generally invest in
fixed income securities such as bonds and corporate debentures. Capital appreciation in such
schemes may be limited.

They are ideal for: retired people and others with a need for capital stability and regular income
investors who need some income to supplement their earnings. Example: Sundaram Bond Saver

BalancedSchemes

These aim to provide both growth and income by periodically distributing a part of the income
and capital gains they earn. These schemes invest in both shares and fixed income securities, in
the proportion indicated in their offer documents.

They are ideal for Investors looking for a combination of income and moderate growth.
Example: Sundaram Balanced Fund

LiquidSchemes

These aim to provide easy liquidity, preservation of capital and moderate income.
These schemes generally invest in safer, short-term instruments, such as treasury bills,
certificates of deposit, commercial paper and inter-bank call money.

They are ideal for Corporate and Individual investors as a means to park their surplus funds for
short periods or awaiting a more favorable investment alternative. Example: Sundaram Money
Fund
TaxSavingSchemes

These schemes offer tax rebates to the investors under tax laws prescribed from time to time.
Under Sec.88 of the Income Tax Act, contributions made to any Equity Linked Savings Scheme
(ELSS) are eligible for rebate @20% for a maximum investment on Rs.10,000 per
financial year.
Example: Sundaram Tax Saver

MUTUAL FUNDS PERFORMANCE

The performance of a Mutual Fund is reflected in its net asset value (NAV) which is
disclosed on daily basis in case of open-ended schemes and on weekly basis in case of close-
ended schemes. The NAVs of mutual funds are required to be published in newspapers. The
NAVs are also available on the web sites of mutual funds. All mutual funds are also required to
put their NAVs on the web site of Association of Mutual Funds in India (AMFI)
www.amfiindia.com and thus the investors can access NAVs of all mutual funds at one place

The mutual funds are also required to publish their performance in the form of half-Yearly
results which also include their returns/yields over a period of time i.e. last six months, 1 year, 3
years, 5 years and since inception of schemes. Investors can also look into other details like
percentage of expenses of total assets as these have an affect on the yield and other useful
information in the same half-yearly format.

The mutual funds are also required to send annual report or abridged annual report to the unit
holders at the end of the year.
Various studies on mutual fund schemes including yields of different schemes are being
published by the financial newspapers on a weekly basis. Apart from these, many research
agencies also publish research reports on performance of mutual funds including the ranking of
various schemes in terms of their performance. Investors should study these reports and keep
themselves informed about the performance of various schemes of different mutual funds.

Investors can compare the performance of their schemes with those of other mutual funds under
the same category. They can also compare the performance of equity oriented schemes with the
benchmarks like BSE Sensitive Index, S&P CNX Nifty, etc.

On the basis of performance of the mutual funds, the investors should decide when to enter or
exit from a mutual fund scheme

RELIANCE MUTUAL FUND:-

1. Reliance Growth Fund

2. Reliance Vision Fund
3. Reliance Banking Fund
4. Reliance Diversified power sector

SELECTING A MUTUAL FUND

Picking a mutual fund from among the thousands offered is not easy. The following is just a
rough guide, with some common pitfalls.

Check with your tax advisor prior to investing in a tax-exempt or tax-managed fund.

Match the term of the investment to the time you expect to keep it invested. Money you may need
right away (for example, if your car breaks down) should be in a money market account. Money
you will not need until you retire in decades (or for a newborn's college education) should be in
longer-term investments, such as stock or bond funds. Putting money you will need soon in stocks
risks having to sell them when the market is low and missing out on the rebound.

Expenses matter over the long term, and of course, cheaper is usually better. You can find the
expense ratio in the prospectus. Expense ratios are critical in index funds, which seek to match the
market. Actively managed funds need to pay the manager, so they usually have a higher expense
ratio.

Sector funds often make the "best fund" lists you see every year. The problem is that it is usually a
different sector each year (internet funds, anyone?). Also, some sectors are vulnerable to industry-
wide events (airlines do come to mind). Avoid making these a large part of your portfolio.

Closed-end funds often sell at a discount to the value of their holdings. You can sometimes get
extra return by buying these in the market. Hedge fund managers love this trick. This also implies
that buying them at the original issue is usually a bad idea, since the price will often drop
immediately.

Mutual funds often make taxable distributions near the end of the year. If you plan to invest money
in the fund in a taxable account, check the fund company's website to see when they plan to pay
the dividend; you may prefer to wait until afterwards if it is coming up soon.

Research. Read the prospectus, or as much of it as you can stand. It should tell you what these
strangers can do with your money, among other vital topics. Check the return and risk of a fund
against its peers with similar investment objectives, and against the index most closely associated
with it. Be sure to pay attention to performance over both the long-term and the short-term. A fund
that gained 53% over a 1-yr. period (which is impressive), but only 11% over a 5-yr. period should
raise some suspicion, as that would imply that the returns on four out of those five years were
actually very low (if not straight losses) as 11% compounded over 5 years is only 68%.
Diversification can reduce risk. Most people should own some stocks, some bonds, and some cash.
Some of the stocks, at least, should be foreign. You might not get as much diversification as you
think if all your funds are with the same management company, since there is often a common
source of research and recommendations. Too many funds, on the other hand, will give you about
the same effect as an index fund, except your expenses will be higher. Buying individual stocks
exposes you to company-specific risks, and if you buy a large number of stocks the commissions
may cost more than a fund will.

The compounding effect is your best friend. A little money invested for a long
time equals a lot of money later.

HOW MUTUAL FUND WORK?

 CRITICISM OF MUTUAL FUNDS
The primary criticism of actively managed mutual funds comes from the historical fact that, over
long periods of time, most have not returned as much as an index fund would.

There are also other criticisms levied against mutual funds as a consequence of the first
criticism. One critique covers the concept of the sales commission, an upfront or deferred fee as
high as 8.5 percent of the amount invested in a fund. Critics point out high sales commissions
represent a conflict of interest, as high commissions benefits the sales people, but hurt the
investors. High commissions can also cause sales people to recommend funds that maximize
their income.

Mutual funds are also seen by some to have a conflict of interest with regards to their size. Fund
companies charges a management fee of anywhere between 0.5-2.5 percent of the funds total
assets. Theoretically this could motivate the fund managers, since a well performing fund would
cause the amount invested in the fund to rise and increasing the fee earned. It also could
motivate the fund company to focus on advertising to attract more and more new investors, as
new investors would also cause the fund assets to increase.

Many analysts believe however that the larger the pool of money one works with, the harder it is
to manage actively, and harder to have good performance. Thus a fund company can be focused
on attracting new customers, hurting its existing investors' performance. A great deal of the
funds costs are flat and fixed costs, such as the salary for the manager. Thus it can be more
profitable to the fund to try and allow it to grow as large as possible, instead of limiting its
assets.

Other practices of mutual funds have been criticized from time to time, such as funds allowing
market timing. More recent criticisms have focused on the fund managers accepting extravagant
gifts in exchange for trading stocks through certain investment banks, who presumably
overcharge the fund compared to what another, non-gifting investment bank would charge.

EQUITY
A share or stock is a document issued by a company, which entitles its holder to be one of the
owners of the company. A share is issued by a company or can be purchased from the stock
market.

The first company that issued shares was the Dutch East India Company in the early 17th
century (1602).

The innovation of joint ownership made a great deal of Europe's economic growth possible
following the middle ages. The technique of pooling capital to finance the building of ships, for
example, made the Netherlands a maritime superpower. Before the widespread adoption of the
joint-stock corporation, an expensive venture such as building a merchant ship could only be
undertaken by governments or by very wealthy individuals or families.

A share is one of a finite number of equal portions in the capital of a company, entitling the
owner to a proportion of distributed, non-reinvested profits known as dividends and to a portion
of the value of the company in case of liquidation. Shares can be voting or non-voting, meaning
they either do or do not carry the right to vote on the board of directors and corporate policy.
Whether this right exists often affects the value of the share.

In financial terminology, stock is the capital raised by a corporation, through the issuance and
sale of shares. A shareholder is any person or organization which owns one or more shares of a
corporation's stock.
In British English, the word stock has a completely different meaning in finance, referring to
a bond. It can also be used more widely to refer to all kinds of marketable securities. Where a
share of ownership is meant the word share is usually used in British English.

By owning a share you can earn a portion and selling shares you get capital gain. So, your
return is the dividend plus the capital gain. However, you also run a risk of making a capital
loss if you have sold the share at a price below your buying price.

A company's stock price reflects what investors think about the stock, not necessarily what
the company is "worth." For example, companies that are growing quickly often trade at a
higher price than the company might currently be "worth." Stock prices are also affected by
all forms of company and market news. Publicly traded companies are required to report
quarterly on their financial status and earnings. Market forces and general investor opinions
can also affect share price.

Equities: investment in shares of companies is investing in equities. Stocks can be bought/sold

from the exchanges (secondary market) or via ipos – initial public offerings (primary market).
Stocks are the best long-term investment options wherein the market volatility and the resultant
risk of losses, if given enough time, is mitigated by the general upward momentum of the
economy. There are two streams of revenue generation from this form of investment.

1. Dividend: periodic payments made out of the company's profits are termed as dividends.

2. Growth: the price of a stock appreciates commensurate to the growth posted by the company
resulting in capital appreciation.

On an average an investment in equities in india has a return of 25%. Good portfolio

management, precise timing may ensure a return of 40% or more. Picking the right stock at the
 right time would guarantee that your capital gains i.e. Growth in market value of your stock
possessions, will rise.

Types of shares
There are several types of shares, including common stock, preferred stock, treasury stock, and
dual class shares. Preferred stock, sometimes called preference shares, have priority over
common stock in the distribution of dividends and assets, and sometime have enhanced voting
rights such as the ability to veto mergers or acquisitions or the right of first refusal when new
shares are issued (i.e. The holder of the preferred stock can buy as much as they want before the
stock is offered to others). A multiple class equity structure has several classes of shares (for
example class a, class b, and class c) each with its own advantages and disadvantages. Treasury
stock are shares that have been bought back from the public. Treasury stock is considered issued
but not outstanding.

TRADING OPTION IN EQUITY

CASH TRADING:
This is a delivery based trading system, which is generally done with the intention of taking
delivery of shares or monies.

Cash order are proposed for taking delivery if u want to buy share u must have the entire fund
100% for purchase those shares

100% of order value is blocked out of or trading limit.

In case of a sell order u should have the entire set of share in your demat a/c.

In case of sell order the security are with draw from the demat a/c.
MARGIN TRADING:
You can also do an intra-settlement trading up to 4 to 5 times your available funds, wherein
you take long buy/ short sell positions in stocks with the intention of squaring off the position
within the same day settlement cycle.

Intra day passed trading when is the position has to be square all by 2:55 pm.

Customer can go long (buy) if he is bullish (who increase) or go short (sell) shares if he
bearish (who decrease)

SPOT TRADING:

This facility can be used only for selling your demat stocks which are already existing in
your demat account. when you are looking at an immediate liquidity option, 'cash on spot'
may work the best for you, on selling shares through "cash on spot", money is credited to your
bank a/c the same evening & not on the exchange payout date.

BTST:

Buy today sell tomorrow (BTST) is a facility that allows you to sell shares even on 1st and 2nd
day after the buy order date, without you having to wait for the receipt of shares into your demat
account.
Brokerage: Same as cash trading

Call trade:

Call trade allows you to call on a local number in your city & trade on the telephone through our
customer service executives. This facility is currently available in over 11 major states across
India.
 INSURANCE

“Insurance, in law and economics, is a form of risk management primarily used to hedge
against the risk of potential financial loss. Insurance is defined as the equitable transfer of the
risk of a potential loss, from one entity to another, in exchange for a premium and duty of care.”

BRIEF HISTORY OF INSURANCE

The story of insurance is probably as old as the story of mankind. The same instinct that
prompts modern businessmen today to secure themselves against loss and disaster existed in
primitive men also. They too sought to avert the evil consequences of fire and flood and loss
of life and were willing to make some sort of sacrifice in order to achieve security. Though
the concept of insurance is largely a development of the recent past, particularly after the
industrial era – past few centuries – yet its beginnings date back almost 6000 years. Life
Insurance in its modern form came to India from England in the year 1818. Oriental Life
Insurance Company started by Europeans in Calcutta was the first life insurance company on
Indian Soil. All the insurance companies established during that period were brought up with
the purpose of looking after the needs of European community and Indian natives were not
being insured by these companies. However, later with the efforts of eminent people like
Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But
Indian lives were being treated as sub-standard lives and heavy extra premiums were being
charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian
life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as
Indian enterprise with highly patriotic motives, insurance companies came into existence to
carry the message of insurance and social

Security through insurance to various sectors of society. Bharat Insurance Company (1896)
was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-
1907 gave rise to more insurance companies. The United India in Madras, National Indian and
National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in
1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms
of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian
Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the
companies established during the same period. Prior to 1912 India had no legislation to
regulate insurance business. In the year 1912, the Life Insurance Companies Act, and the
Provident Fund Act were passed. The Life Insurance Companies Act, 1912 made it necessary
that the premium rate tables and periodical valuations of companies should be certified by an
actuary. But the Act discriminated between foreign and Indian companies on many accounts,
putting the Indian companies at a disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance business. From
44 companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with
total business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance
companies many financially unsound concerns were also floated which failed miserably. The
Insurance Act 1938 was the first legislation governing not only life insurance but also non-life
insurance to provide strict state control over insurance business. The demand for
nationalization of life insurance industry was made repeatedly in the past but it gathered
momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the
Legislative Assembly. However, it was much later on the 19th of January, 1956, that life
insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian
companies and 75 provident were operating in India at the time of nationalization.
 Nationalization was accomplished in two stages; initially the management of the companies
was taken over by means of an Ordinance, and later, the ownership too by means of a
comprehensive bill. The Parliament of

India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life
Insurance Corporation of India was created on 1st September, 1956, with the objective of
spreading life insurance much more widely and in particular to the rural areas with a view
to reach all insurable persons in the country, providing them adequate financial cover at a
reasonable cost.

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate
office in the year 1956. Since life insurance contracts are long term contracts and during the
currency of the policy it requires a variety of services need was felt in the later years to expand
the operations and place a branch office at each district headquarter. Re-organization of LIC
took place and large numbers of new branch offices were opened. As a result of re-organization
servicing functions were transferred to the branches, and branches were made accounting units.
It worked wonders with the performance of the corporation. It may be seen that from about
200.00 crore of New Business in 1957 the corporation crossed 1000.00 crore only in the year
1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new business. But
with re-organization happening in the early eighties, by 1985-86 LIC had already crossed
7000.00 crore Sum Assured on new policies.

Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices, 7
zonal offices and the corporate office. LIC’s Wide Area Network covers 100 divisional offices
and connects all the branches through a Metro Area Network. LIC has tied up with some Banks
and Service providers to offer on-line premium collection facility in selected cities. LIC’s ECS
and ATM premium payment facility is an addition to customer convenience.

Apart from on-line Kiosks and IVRS, Info Centers have been commissioned at Mumbai,
Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities.
With a vision of providing easy access to its policyholders, LIC has launched its SATELLITE
SAMPARK offices. The satellite offices are smaller, leaner and closer to the customer. The
digitalized records of the satellite offices will facilitate anywhere servicing and many other
conveniences in the future.

LIC continues to be the dominant life insurer even in the liberalized scenario of Indian insurance
and is moving fast on a new growth trajectory surpassing its own past records. LIC has issued
over one crore policies during the current year. It has crossed the milestone of issuing
1,01,32,955 new policies by 15th Oct, 2005, posting a healthy growth rate of 16.67% over the
corresponding period of the previous year.

From then to now, LIC has crossed many milestones and has set unprecedented performance
records in various aspects of life insurance business. The same motives which inspired our
forefathers to bring insurance into existence in this country inspire us at LIC to take this
message of protection to light the lamps of security in as many homes as possible and to help the
people in providing security to their families.
 Benefits of Life Insurance
Protection: Savings through life insurance guarantee full protection against risk of death of
the saver. In life insurance, on death, the full sum assured is payable (with bonuses wherever
applicable) whereas in other savings schemes, only the amount saved (with interest) is payable.

Aid to thrift: Life Insurance encourages 'thrift'. Long term saving can be made in a relatively
'painless' manner because of the 'easy installment' facility (method of paying premium either
monthly, quarterly, half-yearly or yearly) built into the scheme. Take, for example, our Salary
Savings Scheme. This scheme provides a convenient method of paying premium each month by
deduction from one's salary. The deducted premium is remitted by the Employer to the LIC. The
Salary Savings Scheme can be introduced in an institution or establishment subject to specified
terms and conditions.

Liquidity: Loans can be raised on the sole security of a policy which has acquired loan value.
Besides, a life insurance policy is generally accepted as security for a commercial loan.

Tax Relief under Section 88 of the Income Tax Act: Considerable tax relief in
Income Tax and Wealth Tax is available to an individual or a Hindu Undivided Family for
amounts paid by way of premium for life insurance. Individual and HUF assesses can avail
themselves of provisions in the law for tax relief. In such cases the assured in effect pays
substantially lower premium for his insurance than he would have to pay otherwise.

Maturity Amount is completely Tax Free A very attractive feature of a LIC policy is
that the amount received on maturity is completely Tax Free.

Money when you need it: A suitable insurance plan or a combination of different plans can
be taken out to meet specific needs that are likely to arise in future, such as children's education,
start-in-life or marriage provision or even periodical needs for cash over a stretch of time.
Alternatively, policy moneys can be so arranged to be made available at the time of one's
retirement from service to be used for any specific purpose, such as for the purchase of a house
or for other investments.

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 ABOUT Reliance General Insurance
Reliance General Insurance, a Subsidiary of Reliance Capital, is one of the first non-life
companies to get the license from the IRDA. RGICL offers an exhaustive range of insurance
products that covers most risks including Property, Marine, Casualty and Liability.

Reliance General Insurance is the fastest growing private sector general insurance company in
India with innovative product offerings and customer service standards that are benchmarked to
the best insurance practices in the world.

Reliance General Insurance offers a wide range of products for corporate and individual
customers. With a focus on customer centric products, multiple distribution channels and
technology adoption we aim to capture substantial market share across product lines.

Vision
To be an insurer of World Standards and the most preferred choice for clientele at the domestic
and global level.

Mission
Our Mission is to keep the customer satisfaction as focal point of all our operations, adopt the
best international practices in underwriting, claims and customer service, be the most innovative
in product development, establish presence all over India, ensure sustained value addition to all
stake holders and to uphold Corporate Value & Corporate Governance.

Objectives
 Make affordable insurance accessible to all
  Keep customer as focal point for all operations

 Protect policy holders interests

 Adopt best international practices in claims, underwriting and policy servicing

 Be the most innovative in product development

 Establish Pan India presence

 Value propositions

Risk Evaluation
Provide expertise in risk evaluation and risk mitigation leading to the most appropriate risk
transfer solution.

Post sales services

Differentiate on service parameters by ensuring prompt and correct documentation& fair,
transparent, speedy claims settlement.

New products
Introduce innovative products suited to specific market segments

Training
Extensive training to the employees involved in underwriting and claims to ensure availability
of a varied experienced and competent team to cater to the customer needs.

Technology
Use IT as a means to provide for a far superior customer experience in terms of access, speed
and simplicity

Reinsurance backing
Apart from using capacity of the national reinsure, establish relationships with the best reinsures
across the world.

Types of Insurance

Any risk that can be quantified probably has a type of insurance to protect it. Among the
different types of insurance are:

Automobile Insurance also known as auto insurance, car insurance and in the UK as
motor insurance, is probably the most common form of insurance and may cover both legal
liability claims against the driver and loss of or damage to the vehicle itself. Over most of the
United States purchasing an auto insurance policy is required to legally operate a motor vehicle
on public roads. Recommendations for which policy limits should be used are specified in a
number of books. In some jurisdictions, bodily injury compensation for automobile accident
victims has been changed to No Fault systems, which reduce or eliminate the ability to sue for
compensation but provide automatic eligibility for benefits.

Boiler insurance (also known as Boiler and Machinery insurance or Equipment Breakdown
Insurance)

Casualty insurance insures against accidents, not necessarily tied to any specific property.

Credit insurance pays some or all of a loan back when certain things happen to the
borrower such as unemployment, disability, or death.

Financial loss insurance protects individuals and companies against various financial
risks. For example, a business might purchase cover to protect it from loss of sales if a fire in a
factory prevented it from carrying out its business for a time. Insurance might also cover failure
of a creditor to pay money it owes to the insured. Fidelity bonds and surety bonds are included
in this category.

Health insurance covers medical bills incurred because of sickness or accidents.

Liability insurance covers legal claims against the insured. For example, a homeowner's
insurance policy provides the insured with protection in the event of a claim brought by
someone who slips and falls on the property, and brings a lawsuit for her injuries. Similarly, a
doctor may purchase liability insurance to cover any legal claims against him if his negligence
(carelessness) in treating a patient caused the patient injury and/or monetary harm. The
protection offered by a liability insurance policy is two-fold: a legal defense in the event of a
lawsuit commenced against the policyholder, plus indemnification (payment on behalf of the
insured) with respect to a settlement or court verdict.

Life insurance provides a cash benefit to a decedent's family or other designated

beneficiary, and may specifically provide for burial, funeral and other final expenses.

Annuities provide a stream of payments and are generally classified as insurance because
they are issued by insurance companies and regulated as insurance. Annuities and pensions that
pay a benefit for life are sometimes regarded as insurance against the possibility that a retiree
will outlive his or her financial resources. In that sense, they are the complement of life
insurance.

Total permanent disability insurance Insurance provides benefits when a person is

permanently disabled and can no longer work in their profession, often taken as an adjunct to
life insurance.

Locked Funds Insurance is a little known hybrid insurance policy jointly issued by
governments and banks. It is used to protect public funds from tamper by unauthorised parties.

In special cases, a government may authorise its use in protecting semi-private funds which are
liable to tamper. Terms of this type of insurance are usually very strict. As such it is only used in
extreme cases where maximum security of funds is required.
Marine Insurance covers the loss or damage of goods at sea. Marine insurance typically
compensates the owner of merchandise for losses sustained from fire, shipwreck, etc., but
excludes losses that can be recovered from the carrier.

Nuclear incident insurance damages resulting from an incident involving radioactivive

materials is generally arranged at the national level. (For the United States, see Price-Anderson
Nuclear Industries Indemnity Act.)

Environmental Liability Insurance protects the insured from bodily injury, property
damage and cleanup costs as a result of the dispersal, release or escape of a pollutant.

Political risk insurance can be taken out by businesses with operations in countries in
which there is a risk that revolution or other political conditions will result in a loss.

Professional Indemnity Insurance is normally a mandatory requirement for professional

practitioners such as Architects, Lawyers, Doctors and Accountants to provide insurance cover
against potential negligence claims. Non licensed professionals may also purchase malpractice
insurance, it is commonly called Errors and Omissions Insurance and covers a service provider
for claims made against them that arise out of the performance of specified professional
services. For instance, a web site designer can obtain E&O insurance to cover them for certain
claims made by third parties that arise out of negligent performance of web site development
services.

Property insurance provides protection against risks to property, such as fire, theft or
weather damage. This includes specialized forms of insurance such as fire insurance, flood
insurance, earthquake insurance, home insurance, inland marine insurance or boiler insurance.
Title insurance provides a guarantee that title to real property is vested in the
purchaser and/or mortgagee, free and clear of liens or encumbrances. It is usually
issued in conjunction with a search of the public records done at the time of a real
estate transaction.

Travel insurance is an insurance cover taken by those who travel abroad, which covers
certain losses such as medical expenses, lost of personal belongings, travel delay, personal
liabilities.. etc.

Workers' compensation insurance replaces all or part of a worker's wages lost and
accompanying medical expense incurred due to a job-related injury.

A single policy may cover risks in one or more of the above categories. For example, car
insurance would typically cover both property risk (covering the risk of theft or damage to the
car) and liability risk (covering legal claims from say, causing an accident). A homeowner's
insurance policy in the U.S. typically includes property insurance covering damage to the home
and the owner's belongings, liability insurance covering certain legal claims against the owner,
and even a small amount of health insurance for medical expenses of guests who are injured on
the owner's property.

Potential sources of risk that may give rise to claims are known as "perils". Examples of perils
might be fire, theft, earthquake, hurricane and many other potential risks. An insurance policy
will set out in details which perils are covered by the policy and which are not
 PHONE POLICY.
DATE VEH.NO. OWNER AGENT CM CODE .NO. NO.
UP 14 Surender
AE Mustkeem Pratap Chaman
######## 2066 Ahmad Singh Kumar 9120124272 2724859
UP16 F Manoj Manbir Chaman 2007001573
6/67/2007 1476 kumar Singh Kumar 9120075726 43

UP 14 P Pramod Pragya Chaman 2007001576

######## 7695 Kumar Agarwal Kumar 9120093306 31
Amit Chaman Chaman 981109216 2825200614
######## Pandey Kumar Kumar 9120124426 2 84
Ajay Chaman Chaman 991175511 2825200614
######## Kashyap Kumar Kumar 9120124426 6 85
Pragya Chaman 921250434 2825200583
######## NitinTyagi Agarwal Kumar 9120093306 4 53
Geeta Chaman 931342145 2825200615
######## Ajay Jain Rani Kumar 9120124446 3 75
Manoj Geeta Chaman 2825200565
######## Kumar Rani Kumar 9120124446 22
Neeraj Geeta Chaman 2825200565
######## Kumar Rani Kumar 9120124446 20
Jitender Chaman Chaman 987121457 2825200442
######## Sharma Kumar Kumar 9120124426 0 66
Binod
Anand Geeta Chaman 2825200615
######## Jha Rani Kumar 9120124446 76
Surender
DL 9C E Viplav Pratap Chaman
######## 3271 Sharma Singh Kumar 9120124272 2724860
UP 15 Z Harjeet Geeta Chaman 121266468
21/7/2007 6045 Kaur Rani Kumar 9120124446 6 2275357
UA 04B Sushil Geeta Chaman 971907991 2007001573
21/7/2007 6253 Kumar Rani Kumar 9120124446 1 50
HR 61 Pragya Chaman 989707255 2007001573
21/7/2007 5585 Poonam Agarwal Kumar 9120093306 2 49
DL 2C Shashi
AC Kant Chaman 981869997 2007001573
21/7/2007 5462 Sharma Kumar 63 47
DL 2C AS Naresh Kr Pragya Chaman 971917325 2007001573
21/7/2007 0966 Sharma Agarwal Kumar 9120093306 4 46
Mohit Kr Charu Chaman 941222108
23/7/2007 Singhal Agarwal Kumar 9120087245 0
HR 51 B Ashish Charu Chaman 123224290
23/7/2007 3737 Kaushik Agarwal Kumar 91200897245 0 2202536
UP 21 R Chaman 983792408 2007005107
28/7/2007 1099 Vipin Kumar Geeta Rani Kumar 9120124446 7 76
UP 15 W Chaman 991715432 2007005107
28/7/2007 1871 Ajay Dewan Geeta Rani Kumar 9120124446 1 78
HR 22 C Chaman 941270547 2007005107
28/7/2007 6938 Amit Kr. Lodhi Geeta Rani Kumar 9120124446 6 77
Chaman 987193674 2825200614
28/7/2007 Pooja Goel C.B.Agarwal Kumar 9120148018 4 87
921377530 2825200615
28/7/2007 Aziz Ahmad Chaman Chaman 9120124426 3 73
 INDIAN INSURANCE SECTOR

The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance Corporation
Act, 1956 and General Insurance Business (Nationalization) Act, 1972, Insurance Regulatory
and Development Authority (IRDA) Act, 1999 and other related Acts.

Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) was formed in September, 1956 by an Act of
Parliament, viz., Life Insurance Corporation Act, 1956, with capital contribution from the
Government of India. The then Finance Minister, Shri P. CEDANEMBERM, while piloting the
bill, outlined the objectives of LIC thus: to conduct the business with the utmost economy, in a
spirit of trusteeship; to charge premium no higher than warranted by strict actuarial
considerations; to invest the funds for obtaining maximum yield for the policy holders consistent
with safety of the capital; to render prompt and efficient service to policy holders,
therebymakinginsurancewidelypopular.

Since nationalization, LIC has built up a vast network of 2,048 branches, 100 divisions and 7
zonal offices spread over the country. The Life Insurance Corporation of India also transacts
business abroad and has offices in Fiji, Mauritius and United Kingdom. LIC is associated with
joint ventures abroad in the field of insurance, namely, Ken-India Assurance Company Limited,
Nairobi; United Oriental Assurance Company Limited, Kuala Lumpur and Life Insurance
Corporation (International) E.C. Bahrain. The Corporation has registered a joint venture
company in 26th December, 2000 in Katmandu, Nepal by the name of Life Insurance
Corporation (Nepal) Limited in collaboration with Vishal Group Limited, a local industrial
Group. An off-shore company L.I.C. (Mauritius) Off-shore Limited has also been set up in 2001
to tap the African insurance market.

INSURANCE SECTOR
GENERALINSURANCE:

General insurance business in the country was nationalized with effect from 1st January, 1973 by
the General Insurance Business (Nationalization) Act, 1972. More than 100 non-life insurance
companies including branches of foreign companies operating within the country were
amalgamated and grouped into four companies, viz., the National Insurance Company Ltd., the
New India Assurance Company Ltd., the Oriental Insurance Company Ltd., and the United India
Insurance Company Ltd. with head offices at Calcutta, Bombay, New Delhi and Madras,
respectively. General Insurance Corporation (GIC) which was the holding company of the four
public sector general insurance companies has since been delinked from the later and has been
approved as the "Indian Reinsure" since 3rd November 2000. The share capital of GIC and that of
the four companies are held by the Government of India. All the five entities are Government
companies registered under the Companies Act.

The general insurance business has grown in spread and volume after nationalization. The four
companies have 2699 branch offices, 1360 divisional offices and 92 regional offices spread all
over the country. GIC and its subsidiaries have representation either directly through branches or
agencies in 16 countries and through associate/ locally incorporated subsidiary companies in 14
other countries. A wholly- owned subsidiary company of GIC, i.e. Indian International Pvt. Ltd. is
operating in Singapore and there is a joint venture company, viz. Kenindia Assurance Ltd. in
Kenya. A new wholly owned subsidiary called New India International Ltd., UK has also been
registered.

INSURANCE SCHEMES

Universal Health Insurance Scheme the Universal Health Insurance policy is available to groups of
100 or more families. The policy provides for reimbursement of medical expenses up to
Rs.30000/- towards Hospitalization floated amongst the members of the family, death cover due to
an accident for Rs.25000 to the earning head of the family and compensation due to loss of earning
head of the family @ Rs.50/- per day up to a maximum of 15 days, after a waiting period of three
days, when the earning head of the family is hospitalized. The premium under the policy is Rs.1/-
per day (i.e. Rs.365/- per annum) for an individual, Rs.1.50 per day for a family of five limited to
spouse and children (i.e. Rs.548 per annum), and Rs.2/- per day (i.e. Rs. 730 per annum) for
covering dependent parents within the overall family size of seven. A subsidy of Rs. 100 per year
towards annual premium for "Below Poverty Life" families is also provided under the Scheme.

For purpose of this policy HOSPITAL means:

 Any Hospital/Nursing home registered with the local authorities and under the supervision
of a registered and qualified Medical practitioner.
 Hospital/ Nursing Home run by Government.
 Enlisted hospitals run by NGOs/ Trusts/ selected private hospitals with fixed schedule of
charges.
 Hospitalization should be for a minimum period of 24 hours. However, this time limit is
not applied to some specific treatments and also where due to technological advancement
Hospitalization for 24 hours may not be required.

Main Exclusions:
 All pre-existing diseases.
 Corrective, cosmetic or aesthetic dental surgery or treatment.
 Cost of spectacles, contact lens and hearing aid.
 Primarily diagnostic expenses not related to sickness/injury.
 Treatment for Pregnancy, Childbirth, Miscarriage, abortions etc.
Age Limitations:
This policy covers people between the age of 3 months to 65 years.

Floater Basis:

The benefit of family will operate on floater basis i.e. the total reimbursement of Rs. 30,000/- can
be availed of individually or collectively by members of the family.

Varishtha Pension Bima Yojana Scheme

Indian citizens aged 55 years (last birthday) and above are eligible (no upper age ceiling).

 Pension will be paid during the lifetime of the pensioner.

 In the event of unfortunate death of the pensioner, purchase price will be paid to the
nominee/ legal heir of the pensioner.
 Mode of payment of pension : Monthly, Quarterly, Half Yearly or Yearly.
 Minimum pension is Rs. 250/- per month
 Maximum pension is Rs. 2000/- per month.
 Only one person from a family can apply. The family for this purpose shall comprise of the
pensioner, his/ her spouse and dependants.
 Age proof will be required. Where age is to be admitted on declaration basis, declaration on
a stamp paper, signed in front of a notary shall be required.

Premium
Only single premium (purchase price) is payable i.e. premium is to be paid in one lump sum.
Further, premium shall be accepted by cheques/ drafts payable on the Branch of the bank which is
the member of the local clearing house.
Exit Option

Exit option to be provided after 15 years.

POST OFFICE SCHEMES

Post offices in India have a wide network. Spread across the Nation, they offer financial assistance
as well as serving the basic requirements of communication. Among all saving options, Post office
schemes have been offering the highest rates. Added to it is the fact that the investments are safe
with the department being a Government of India entity. So the two basic and most sought for
features, those of return safety and quantum of returns were being handsomely taken care of.
Though certainly not the most efficient systems in terms of service standards and liquidity, these
have still managed to attract the attention of small, retail investors. However, with the government
announcing its intention of reducing the interest rates in small savings options, this avenue is
expected to lose some of the investors. Public Provident Funds act as options to save for the post
retirement period for most people and have been considered good option largely due to the fact
that returns were higher than most other options and also helped people gain from tax benefits
under various sections. This option too is likely to lose some of its sheen on account of reduction
in the rates offered.

What is National Savings Certificate?

National Savings Certificates (NSC) are certificates issued by Department of post, Government of
India and are available at all post office counters in the country. It is a long term safe savings
option for the investor. The scheme combines growth in money with reductions in tax liability as
per the provisions of the Income Tax Act, 1961. The duration of a NSC scheme is 6 years.
Features

NSCs are issued in denominations of Rs 100, Rs 500, Rs 1,000, Rs 5,000 and Rs 10,000 for a
maturity period of 6 years. There is no prescribed upper limit on investment.

Individuals, singly or jointly or on behalf of minors and trust can purchase a NSC by applying to
the Post Office through a representative or an agent. 

One person can be nominated for certificates of denomination of Rs. 100- and more than one
person can be nominated for higher denominations.

The certificates are easily transferable from one person to another through the post office. There is
a nominal fee for registering the transfer. They can also be transferred from one post office to
another.

One can take a loan against the NSC by pledging it to the RBI or a scheduled bank or a co-
operative society, a corporation or a government company, a housing finance company approved
by the National Housing Bank etc with the permission of the concerned post master.

Though premature encashment is not possible under normal course, under sub-rule (1) of rule 16  it
is possible after the expiry of three years from the date of purchase of certificate.

Tax benefits are available on amounts invested in NSC under section 88, and exemption can be
claimed under section 80L for interest accrued on the NSC. Interest accrued for any year can be
treated as fresh investment in NSC for that year and tax benefits can be claimed under section 88. 
Return

It is having a high interest rate at 8% compounded half yearly. Post maturity interest will be paid
for a maximum period of 24 months at the rate applicable to individual savings account.  A
Rs1000 denomination certificate will increase to Rs. 1601 on completion of 6 years.

Interest rates for the NSC Certificate of Rs 1000

Year Rate of Interest

1 year Rs 81.60
2 year Rs 88.30
3 year Rs 95.50
4 years Rs103.30
5 years Rs 111.70
6 years Rs 120.80

Advantages

Tax benefits are available on amounts invested in NSC under section 88, and exemption can be
claimed under section 80L for interest accrued on the NSC. Interest accrued for any year can be
treated as fresh investment in NSC for that year and tax benefits can be claimed under section 88.
NSCs can be transferred from one person to another through the post office on the payment of a
prescribed fee. They can also be transferred from one post office to another. The scheme has the
backing of the Government of India so there are no risks associated with your investment.
How to start?

Any individual or on behalf of minors and trust can purchase a NSC by applying to the Post Office
through a representative or an agent. Payments can be made in cash, cheque or DD or by raising a
debit in the savings account held by the purchaser in the Post Office. The issue of certificate will
be subject to the realization of the cheque, pay order, DD. The date of the certificate will be the
date of realization or encashment of the cheque. If a certificate is lost, destroyed, stolen or
mutilated, a duplicate can be issued by the post-office on payment of the prescribed fee.

Government and sovereign bonds

A government bond is a bond issued by a national government denominated in the country's
domestic currency. Bonds issued by national governments in foreign currencies are normally
referred to as sovereign bonds. Government bonds are usually considered risk-free bonds,
because the government can raise taxes, reduce spending, or simply print more money to redeem
the bond at maturity. Investors in sovereign bonds have the additional risk that the issuer is
unable to obtain foreign currency to redeem the bonds.

Denominated in reserve currencies

Governments borrow money in a currency for which the demand is strongest. The advantage of
issuing bonds in a currency such as the euro or the US dollar, is that the universe of investors for
the bonds is very large. Countries such as the United States, France and Germany have only
issued in their domestic currency. Relatively few investors are willing to invest in currencies that
do not have a long track-record of stability. The disadvantage for a government issuing bonds in
a foreign currency, is that there is a risk that they will not be able to obtain the foreign currency
to pay the interest or redeem the bonds. In 1997/1998, during the Asian financial crisis this
became a serious problem when many countries were unable to keep their exchange rate fixed
due to speculative attacks.
 BIBLIOGRAPHY

BOOKS

 MARKETING RESEARCH BY HARPER W.BOYD

 “HE INTELLIGENT INVESTOR”BY WARREN E. BUFFETT

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