Professional Documents
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Comparitive Study of Religare
Comparitive Study of Religare
ON
To
GLA
Institute of Professional Studies, Mathura
GUIDE SUBMITTED BY
Miss. Hina Sharma Gautam bajaj
Asst. Professor B.B.A. VI Semester
GLAIPS – Mathura University Roll No: 80040
Enrollment No: 0871161
Certificate
Place: Mathura
Date:
HINA SHARMA
Asst. Professor
GLA Institute of Professional
Studies
17th K.M Milestone, NH # 2
University, Agra.
The same has not been submitted to any other university or institute for the
Place:
project and guiding me in its analysis and implementation. Equal thanks also go
to all Faculty & Staff members of the Institute for extending open support.
and support.
GAUTAM BAJAJ
EXECUTIVE SUMMARY
Religare Securities LTD. is a Brokerage house, which deals in purchase and
The project was undertaken through regular visits to the branch. The Branch
Head who was also my industry mentor assigned the work to me. Meeting
clients, solving their queries, executing their transaction etc. were some of the
Basically the project revolves around to analyses that how to invest in the
market so that a customer could get the sufficient return on his investment. Also
this project reveals the norms and conditions of the broking house so that a
client could easily trade in the market. The project depicts the various
companies are listed as well as their codes. Apart from it all the walking clients
Suggestions are given to the branch in order to increase their efficiency and to
take the advantage of opportunities and to over come from their weakness .
Table Of Contents
I. Certificate
II. Undertaking
III. Acknowledgement
Chapter 1 : Introduction
Chapter 8 : Recommendations
Chapter 9 : Annexure
Chapter 10 : References
LIST OF IILUSTRATIONS
VISION
and become a one stop shop for all non-banking financial products and services
MISSION
INTRODUCTION:-
globalization.
The project was under taken as to study the Indian online trading. Earlier
Trading was confined in limited boundaries but now the scenario has been
totally different after the entrance of online trading. There is a cut throat
competition between the broking houses. Now the brokers are more concerned
fundamental changes that have diluted its traditional role of protecting small
deposits against capital and income risk and facilitating the conversion of
Also there have been a drastic increase in the volume of share traded on stock
exchange and with that the online trading has shown Bull Run.
Increasing Internet trading volume:-
Online trading is the service offered on the internet for purchase and sales of
shares. In the real world you place orders on your stock broker either verbally or
in a written form. In online trading you will access a stock broker’s website
through your internet enabled PC and place orders through the brokers internet
based trading engine. These orders are routed to the stock exchange without
manual intervention and executed their own in the matter of a few seconds.
From the past two years the volume of the internet trading has increased largely.
(Graph 1)
Introduction to Brokerage Industry:-
Post major reforms initiative in early 2000s brokerage industry in India is
have resulted in huge spurt in business and also growing market share of the
large sized brokerage houses has led to surge in enterprise value. In the year
2007 IPOs of large firms (Motilal Oswal, Religare, and Edelweiss) received
huge response (Indian catalog, 2001). At the same time global and private
equity firms have taken stake in brokerage firms. In India there are about 45
equity brokerage houses that are at present listed in the stock exchanges.
Industry Insight:-
Majority of the broking firms entered the business post 1990. A majority
Although there are more than 9000 brokers registered with SEBI 80% of
One of the oldest trading industries that have been around even before the
have been number of changes, despite this the stock broking industry was at its
To study the trend in the stock broking industry, if we take the database of
over 394 broking firms. All the data for the study was collected through
responses received directly from the broking firms. The insights have been
other cities
In the cash market, around 34% firm’s trade at NSE, 14% at BSE
and 52% trade at both exchanges. In the derivative segment, 48% trade at
NSE, 7% at BSE and 45% at both, whereas in the debt market, 31% trade
are located in the North, i.e. around 40%. West has 31%, 24% are located
FII clients and 43% are interested in setting up JV in India and abroad
40% of all branches located there, followed by the Western region, with 31%
branches. Around 24% branches are located in the South and East constitutes
In case of sub-brokers, almost 55% of them are based in the South. West and
North follow, with 30% and 11% sub-brokers respectively, whereas East has
(Graph 3)
Where one firm looses out to other:-
when compared to larger Brick and Mortar players who have presence in
high value high volume investors prefer to trade with so called blue chip
brokers. Retail investors are “easy come easy go” accompanied with
inconsistent trading habits. In Bull Run they gain confidence to invest but
High competition among Stock brokers has put significant pressure on the
prices.
overheads is very challenging especially for newer firms who are yet to
In the recent period, global and domestic private equity firms have taken stake
Brothers), Geojit (BNP Paribas), SMC (Millennium India), Motilal Oswal (New
Vernon), Network Broking (Amas Bank of Hindu as) and India Info line (Orient
Global) etc.
There are 23 recognized stock exchanges in India, including the Over the
Counter Exchange of India (OTCEI) for small and new companies and the
milestone. A lot has changed since 1875 when 318 persons became members of
amount of Re1.
Since then, the country's capital markets have passed through both good and bad
periods. The journey in the 20th century has not been an easy one. Till the
decade of eighties, there was no scale to measure the ups and downs in the
Indian stock market. The Stock Exchange, Mumbai (BSE) in 1986 came out
with a stock index that subsequently became the barometer of the Indian stock
market.
SENSEX
1978-79 and the base value is 100. The index is widely reported in both
domestic and international markets through print as well as electronic
media
major index providers like NIKKEI, NASDAQ and DOW JONES use the
free float methodology. The growth of equity markets in India has been
phenomenal in the decade gone by. Right from early nineties the stock
runs. The SENSEX captured all these events in the most judicial manner.
The National Stock Exchange of India Limited has genesis in the report
country.
On its recognition as a stock exchange under the
Exchange (NSE) was started in 1994, few believed it would survive. How could
stockbrokers?
Critics even went to the extent of warning that NSE’s sophisticated systems
Today, with number of trades touching 2.5 million a day and turnover touching
turnover touching Rs 100 billion in value terms, NSE towers over all the other
In a ten-year period (NSE completed a decade on June 30, 2004) the National
Stock Exchange has tilted the market system in favour of investors and away
The Stock Exchange, (NSE) came out with a stock index that subsequently
Nifty been the focal point of investors, as it provides trading the shares as well
as index in futures and options. Before Nifty came into existence trading of
index concept was not present it was introduced by Nifty and is present in it
National stock exchange gives the investors different option where an investor
can deal the equities into different market situations like cash market and
derivatives.
Cash market is simply the equity market where investors have to pay the
security amount which is done in BSE also but in NSE investors has the choice
of dealing in derivatives.
Derivatives are the future market where investors have the option of dealing in
the price list of futures for which there a separate index is present known as
NIFTY FUTURE.
In Derivatives there are two choices available for an investor FUTURES AND
OPTIONS.
FUTURE – In future market shares are deal in lots
these lots could be of different numbers like 100, 200, 500 etc. Investors
while taking over these lots and coming under the contract takes the
position of the shares by paying the 1/3rd amount of the total holdings.
(2*100*900) / 3 = 60000/
Which shows the investor is taking the position of Rs. 180000/- in just Rs.
60000/- in future market which the area of attraction of this particular market.
These holdings are taken for 1 month, 2 months and three months according to
the investor’s preference. The beauty of this contract is that the remaining 2/3rd
money of the holdings is paid by the broking house the investors dealing with.
Investor coming into this contract should know that by the time of contract he is
in like of 1 or 2 months investor should clear its position before the last
deal with CALL and PUT. The concept of call and put is opposite to each
other call is the contract where the investors believe that the market is
the future.
In the call option investors is benefited if market drives up in future and in put
Out of this Rs 87,029 cr were raised through 124 public and right issues
3,26,292 in March2007.
Institutional Structure of the Indian Stock Market
Market Intermediaries Number of
Intermediaries as on
March 31,2008
Stock exchanges (cash 19
Market)
Stock Exchanges 2
(Derivative Market)
Brokers (Cash Segment) 9487
Corporate Brokers (Cash 4183
Segment)
Sub Brokers (Cash 44073
Segment)
Brokers (Derivatives) 1442
FII 1319
Custodians 15
Depositories 2
Merchant Bankers 155
Bankers to an Issue 50
Underwriters 35
Mutual Funds 40
Stock Trading:-
last few years, some issues like location constrains, busy phone lines, miss
Online Stock Market Trading is an internet based stock trading facility. Investor
can trade shares through a website without any manual intervention from Stock
Broker.
In this case these Online Stock Trading companies are stock broker for the
investor. They are registered with one or more Stock Exchanges. Mostly Online
computer.
This software is provided by the stock broker. This
Advantages:-
Orders directly send to stock exchanges rather than stock broker.
Disadvantages:-
Location constrains - You cannot trade if you are not on the
These trading terminals are not easily available for low volume
share traders.
installation. They are like other internet websites which investor can
access from around the world through normal
Check the trading history; demat account balance and bank account
Set alert to inform you certain activity on the stock through email
or sms.
and institutional clients. The services offered by the group include share
advisory services, private equity, merchant banking and trading in arts and art
crafts. The major revenue drivers for the company are its retail equity broking
arm Religare Securities and Religare invest, which finances loans against
shares.
The diverse bouquet of financial services which Religare offers can be broadly
clubbed across three key verticals - Retail, Institutional and Wealth spectrums.
The services extend from asset management, Life
Insurance, wealth
banking,lending services, private equity and venture capital. Religare has also
ventured into the alternative investments sphere through its holistic arts
initiative and Film fund. With a view to expand, diversify and introduce
life insurance space under 'AEGON Religare Life Insurance Company Limited'
and wealth management under the brand name 'Religare Macquarie Private
across 498* cities and towns. It also currently operates from nine international
Hichens, Harrison & Co. plc. (Now Religare Hichens, Harrison Plc).
(Graph 4)
Religare has grown rapidly from what was largely an equity trading
465 cities and towns and a large management team leading group of
Recently acquired Hichens, Harrison & Co. (“Hichens”), one of the oldest
(Chart 1)
RELIGARE
FINVEST LTD
RELIGARE
RELIGARE COMMODITIES
SECURITIES LTD LTD
RELIGARE REALTY
RELIGARE LTD
ENTERPRISES
LIMITED
RELIGARE
FINANCE LTD
RELIGARE
RELIGARE
WEALTH
INSURANCE
MANAGEMENT
BROKING LTD
SERVICES
RELIGARE RELIGARE
CAPITAL MARKET VENTURE
LTD CAPITAL LTD
Fig 1
Religare
Areas of
Operation:-
(Table 2)
Products & Services
Equity
Investment
Banking
REL Mutual Fund
Wealth
Advisory Insurance
Services
Personal
Credit
Promoter Groups:-
Limited
Pan India presence expanded to 1,575 location in 465 cities across India
Major activities and offerings of the company include equity broking both
Member of the NSE, BSE, depository participant with NSDL and CDSL,
Depository Services
with market share increasing to 3.8% in June 2008 from 2.7% in FY07
and online trading market share increased to 8.7% in June 2008 from
CRISIL for its short term debt issuance program for a sum of Rs. 7,000
million.
reasonable share of the market. The major activities and offerings of the
Limited and Central Depository Services (I) Limited, and SEBI approved
and services and to offer such incisive services to specific user segments it has
also started the NRI, FII, HNI and Corporate Servicing groups. These groups
take all the portfolio investment decisions depending upon a client’s risk / return
parameter. Religare has a very credible Research and Analysis division, which
not only caters to the need of our Institutional clientele, but also gives their
Depository services to its clientele and is one of the leading depository service
INVEST.
BANKING
EQUITY
OFFERINGS OF RELIGARE SECURITY AND
INTERNATIONA-L ADVISORY
DERIVATIVES
PMS
Equity and Trading:-
Race and Rally are the two products offered by Religare Securities ltd which
Rally
Race
While Rally deals with offline facilities, Race provides for complete online
package and facility. There is difference between both offline and online modes
of trading. The difference lies on account of its schemes, platforms and facilities
provided. Initially the clients used to go for offline modes of trading, but now
with increasing use of internet online mode has become the preference.
Type of Account:-
R-ACE (Basic)
It's the basic online trading account provided by Religare. Investor can trade and
access their account information online and over the phone as well. This
account comes with a browser based online trading platform and no additional
maintenance charges.
It's the advanced account option for the investor with Religare. This trading
account provides the entire feature of R-ACE (Basic) account. In addition it also
provides real-time streaming stock quotes and alerts. This trading platform is
As the name indicates this account is for high volume traders. Along with the
features from above 2 accounts, this account also comes with a Trading
directly connects the investor to stock market and having all industry standard
chains, futures & options calculator. As in basic and advance account, trading is
Religare offers three kinds of accounts as above. Below are detail about fees
1. R-ACE
Account activation charges Rs.299/-.
2. R-ACELite
Account activation charges Rs.499/-..
3. R-ACEPro
Account activation charges Rs.999/-.
6. Brokerage at Religare:-
different options for brokerages. On the broader way they divided into
three categories:
o Classic Account:- Intraday brokerage varies from 0.3% to
This one time payment enable account holder to trade for Rs.
Religare Allow their investor to trade without having to worry about cash
margin. Investor can get exposure (on cash segment) as high as 20 times
Equity client base of over 4.6 lacks, recorded an increase of more than
last quarter.
(Graphs-5)
(Graphs- 6)
(Graphs-7)
(Graphs- 8)
Increased Income from Various Business Lines
(Graphs-8 & 9)
(Graphs- 9)
(Graphs- 10)
SWOT ANALYSIS
STRENGTHS WEAKNESS
Strong corporate No satisfactory Brand
relationship with its awareness and no Brand
promoter RANBAXY. recall value
OPPOURTUNITIES THREATS
Even the strong players Competition from major
in the market holds 6% players like ICICI
of market share, so there DIRECT, SHAREKHAN,
is a good potential for INDIA BULLS, KOTAK
growth. etc.
1. ICICI DIRECT
2. INDIA BULLS
3. SHARE KHAN
5. KOTAK
6. RELIANCE MONEY
1. ICICI DIRECT:-
Along with stock trading and trading in derivatives in BSE and NSE, it also
Type of Account:-
primarily for buying and selling stocks in NSE and BSE. This account
Trading, Buy Today Sell Tomorrow and Call and Trade on phone.
account. They also provide installable application terminal based application for
Along with stock trading and IPO investing in BSE and NSE, Wise Investment
account also provide options to invest in Mutual Funds and Bonds online.
Mutual Fund companies. ICICI Direct offers various options while investing in
Mutual Funds like Purchase Mutual Fund, Redemption and switch between
and transferring existing Mutual Funds in to electronic mode. This account also
provides facility to invest in Government of India Bonds and ICICI Bank Tax
investors. It allows investor to use online and offline stock trading. It also
trading.
for contract notes. It ranges from 0.1% to 0.15% for margin trades, 0.2%
to 0.425% for squared off trades and 0.4% to 0.85% on delivery trades.
1. 3-in-1 account integrates your banking, broking and demat accounts. All
accounts are from ICICI and very well integrated. This feature makes
environment.
2. Unlike most of the online trading companies in
deposits, at ICICI Direct you clown demat and bank accounts through
be frustrating.
INDIABULLS
An India bull is India's leading Financial Services and Real
Estate Company having presence over 414 locations in more than 124 cities.
India bulls Financial Services Ltd is listed on the National Stock Exchange,
Exchange.
Type of Account:-
India bulls Equity Trading Account is standard Online trading account from
India bulls and along with online trading it also provides priority telephone
access that gives you direct access to your Relationship Manager and full access
Power India bulls trading terminal is the most advanced new generation trading
Quotes, Fast Order Entry and execution, Tic by Tic Live Charts, Technical
Analysis, Live News and Alerts, Extensive Reports for Real-time Accounting.
refundable) as below:
Provide trading terminal 'power bulls', a java based software. It's very fast
SHAREKHAN
Share khan is online stock trading company of SSKI Group, provider of India-
based investment banking and corporate finance service. Share Khan is one of
the largest stock broking houses in the country. S.S. Kantilal Ishwarlal
Securities Limited (SSKI) has been among India’s leading broking houses for
Share khan's equity related services include trade execution on BSE, NSE,
Share khan has one of the best states of art web portal
equity, mutual funds and IPOs. You can surf across 5,500
than 1,500 mutual fund schemes and IPO data. You can also access other
Type of Account:-
Allow investor to buy and sell stocks online along with the following features
like multiple watch lists, Integrated Banking, demat and digital contracts, Real-
time portfolio tracking with price alerts and Instant credit & transfer.
for authentication
9.30 am
e. IPO investments
This accounts for active traders who trade frequently during the day's trading
Brokerage:
Some stock trading companies charge direct percentage while others charge a
fixed amount per Rs 100. Share khan charges 0.5% for inter day shares and
0.1% for intra day or you could say Share khan charges 50 paisa per Rs 100.
Online trading is very user friendly and one doesn't need any software to
access.
They provide good quality of services like daily SMS alerts, mail alerts,
Share khan has ability to transfer funds from most banks. Unlike ICICI
Direct, HDFC Sec, etc., so investor not really needs to open an account
with a particular bank as it can establish link with
They charge minimum brokerage of 10 paisa per stock would not let you
trade stocks below 20 Rs. (If you trade, you will loose majority of your
money in brokerage).
They do not provide facility to book limit order trades during after-hours.
over the variables. The researcher used this research design to find out the
SAMPLING DESIGN:-
CONVENIENCE SAMPLING:-
sampling is that sampling procedures does not any basis for estimating the
probability that each item in the population has of included in the sample. The
SAMPLE SIZE:-
A sample of 50 people was taken for the survey. The required data collected
through questionnaire.
SAMPLE DESIGN:-
20-30 years
30-40 years
Target Population
40-50 years
above 50 years
Krishna Nagar,
Maholi Road,
Location
Dampier Nagar,
Bank Colony.
Type of questionnaire Structured
DATA COLLECTION:-
The information required for our project was collect mainly from the primary
sources and even from secondary sources. The primary source consists of the
data analyzed from questionnaire and interaction with the user at that time only.
Limitations:
Time limitation
c. 20 – 30% d. 30 – 40%
e. others
others, 3 0-10%, 8
30-40%, 9
0-10%
10-20%
30-40%
ANALYSIS:
Among the 50 questionnaires filled, it was clear that among them maximum
people invest in the category of 10-20%. Thus Religare has the opportunity to
capture this segment. But people are not aware of the services so here Religare
4
18
Securities
7 Insurance
Mutual Funds
Commodities
Other Instruments
15
ANALYSIS:
The above observation speaks about the financial instruments in which the
people invest; most of the people invest in the securities through share market
and then invest in the insurance. Thus more focus should be made on securities
so that company has the maximum investment. This would ultimately increase
the profits.
(a) YES
(b) NO
no
42%
yes
no
yes
58%
ANALYSIS:
It can be seen that among the whole population around 58% people either invest
in stock market or they are actually interested, but don’t have a good knowledge
about it. So these people can actually become Religare’s target market but
religare has to provide them the better services and brokerage plans and also,
(a) YES
(b) NO
no, 18
yes
no
yes, 32
ANALYSIS:
Among 50 respondents 32 actually have a demat account and are aware of the
dealings in stock trading. The rest 18 are still in the other category. So strategies
(a) Online
(b) Offline
online, 11
online
offline
offline, 21
ANALYSIS:
demat account offline and rest 11 have their demat accounts online. As online
broking is still at a premature stage in India. Thus more and more awareness
ANALYSIS:
Among these 32 people most of them have their demat account with Share
Khan and India bulls. Thus these two are Religare’s biggest competitors. Also
(a) Yes
(b) No
37%
Yes
No
63%
ANALYSIS:
It can be seen that among the population who invest in stock market, around
37% people either trade in future or they trade in option. So these people can
actually become Religare’s target market as they generate heavy brokerage for
the company. Religare has to provide them the better services and brokerage
plans and also, providing them the initial platform of online trading.
6%
11%
Everyday
19% 2-3 Days a week
12-18 days a month
2-3 days a month
64%
ANALYSIS:
The above observation speaks about the; most of the people do trading every
day. Thus more focus should be made on the traders which are every day
traders. The company should also focus on the others also because they are the
traders for the long term investment and also, provide heavy brokerage to the
company.
(a) Yes
(b) No
17%
Yes
No
83%
ANALYSIS:
company. Religare can have the advantage of attracting their customers as they
don’t charge the AMC on its brokerage plans and which will work to generate
sales.
10. How much Brokerage do you pay on Intraday?
3%
27%
26%
(0.01 – 0.02) %
(0.02 – 0.03) %
(0.03 – 0.04) %
(0.04 – 0.05) %
0.05 % or more
18%
26%
ANALYSIS:
It can be seen that the companies are charging brokerage according to their own
means. So, the companies are creating biasness between the customers. Even if
the customers portfolio is the same then also the brokerage may vary from the
person to person. So, religare has the best feature of providing less brokerage
1%
25% 24%
(0.01 – 0.02) %
(0.02 – 0.03) %
(0.03 – 0.04) %
(0.04 – 0.05) %
0.05 % or more
19%
31%
ANALYSIS:
Here also you can see that the long term investors have to give brokerage
according to what the company wants. So, here also the biasness is created in
the mind of the customers. So, Religare got a great opportunity to attract the
customers by giving the brokerage plans according to what the customer want.
12. Are they getting the good services?
(a) Yes
(b) No
36%
Yes
No
64%
ANALYSIS:
It can be seen from the observations that there are customers who are not
providing better services to them. Sometimes even if the customers have the
same or more investment then also, he is getting fewer services than the other
one. So, Religare can convert them by providing better services to them.
RECOMMENDATIONS:-
On the basis of these findings and analysis, It has can be surely said that in
stock broking industry, differentiation can become the key to higher revenues.
offices are needed to retain customers and to increase the revenue base. As more
(especially online broking) will have a completely new meaning with more
fringes coming into the picture and more firms will offer umbrella services to
Providing better plans and schemes than our competitors like Share
insistence stage.
Religare should make its brokerage structure more flexible to give
Also, to attract the NRIs so, those to increase its share in the stock
investment.
Annexure:-
QUESTIONNAIRE:-
NAME:
GENDER: AGE:
(e) Others
http://religaresecurities.com/trade.asp
http://www.hinduonnet.com/businessline/iw/2000/09/03/stories/0703g051
.htm
http://www.traderji.com/
http://www.ShareKhan.com
http://www.indiabulls.com
http://www.icicidirect.com
http://www.chittorgarh.com/newportal/online-stock-brokers-list.asp
www.financialtimes.net
http://www.religare.in/
http://www.milestonereligare.com/
Newspaper:-