ANALYSIS OF RELIGARE ONLINE AND OFFLINE TRADING A PROJECT REPORT 2011 Submitted In Partial Fulfillment of the Requirement for the Award of the Degree of MASTER OF BUSINESS ADMINISTRATION Submitted By NAVIN MEHTA ISBE(A) FD2 Under the guidance of Mr. VIPUL GUPTA (BRANCH MANAGER) IIPM SATBARI CAMPUS Acknowledgement: The completion of this project gives me an opportunity to convey my regards to all those who helped me to reach a stage where I have the confidence to launch my career in the competitive world of management.
I am thankful to my Industry guide Mr. VIPUL GUPTA, & my faculty who provided me the most needed guidance, suggestions and support to make this project a wonderful reality. NAVEEN KUMAR TABLE OF CONTENT 1. ABSTRACT 2. PREFACE 3. ACKNOWLEDGEMENT 4. INTRODUCTION 4. 1) About the project 4. 2) About the company 5. MAIN TEXT 5. 1) NSE 5. 2) BSE 5. 3) EQUITY TRADING 6. ABOUT THE PROJECT 6. 1) RELIGARE ONLINE 6. 1a) online trading 6. 2) religare offline 7. RESEARCH METHODOLOGY 8. RESEARCH ANALYSIS 9. ANALYSIS AND INTERPRETATION 11. FINDINGS 12. RECOMMENDATIONS 13.
ANALYSIS WITH CMPETITORS 14. CONCLUSION 15. LIMITATIONS 16. REFRENCES 17. ANNEXURES ABSTRACT Analysis of financial reports takes a very important role for further course of action of any corporate or business entity, and this entire project is related to analysis of business & financials of this corporate entity and find out how this company did its operations. As any financial report consist many heads for revenue as well as expenditure and major role of any business analyst is to analyze the business, make future plans and boost the performance of the organization.
As this company is conducting its operations mainly from its stock trading activities like by online trading activities and offline trading, so for any decision one has to analyze its each and every small and big activity till now so that an intense idea can be analyzed. This project is directly related to analysis of Religare online and offline, so that it can be observed how it did its operations in past few periods and did its strategies pour any kind of growth in financials as well as its other wings of business. As Religare Securities Ltd. s in mainly online trading business and trying to capture big market share in this area so in this report it has been analyzed thoroughly in different categories so that an idea can be taken of its performance broadly. Purpose of this analysis is to provide a blueprint for its upcoming operations and to look into its financial reports for its performance in terms of numbers which is a very important component for business analysis and financial reports show a real picture of any business performance and also gives us an insight for future course of action.
I was involved in selling DEMAT and trading accounts, the data of prospective clients was given to me by the company, during that time I also got the chance to interview them personally which helped me to understand their needs. The report covers the functional explanations of the concept of equity trading in detail, the intricacies in the business of a stock broking firm. The report includes a study on the existing clients in order to offer customized services to its clients, a comparative study with the major players with respect to the brokerage charged and a study on the new clients addressing the needs and wants of the customers.
PREFACE As part of this two year programmed leading to master of business Administration, IIPM curriculum of which includes both theoretical and practical orientation in specialized areas In fulfillment of this objective, I joined the organization Religare Securities Ltd, NOIDA. I was assigned to make a report, on Analysis of religare online and offline. There are many differences in theoretical study and practical study. The theories are universally applicable but when it comes practical. The situation is different for the person who have theoretical knowledge.
So practical knowledge is essential for understanding a problem, solve the problem and coming to a conclusion. Introduction: About the project: Problem recognition: Considering the investment criteria for different customers and the type of usage of each individual customer, it becomes a challenge for the company to provide the right service to a specific person. Understanding the needs of customer becomes an important aspect in capturing the untapped market share, and also in retaining the existing customers.
As a lot of companies are into the stock broking business, it is very essential for the company to be aware of the strategies adopted by the major competitors, and what are the options available to the clients and what are the services provided by the competitors. Procedure followed: • Keeping in mind the objective of the study the following procedure is followed to achieve the objective. • In order to offer customized services to the retail clients, the existing clients and the new clients will be interviewed personally which will help in understanding the needs of customers in a better way. The project will also include a comparative analysis with competitors. • All the concepts studied during the course of study are given in detail. About the company: [pic] Religare is one of the leading integrated financial services groups in the country today, backed by a blue chip promoter pedigree and a proven track record. Our businesses are broadly clubbed across three key verticals, the Retail, Institutional and Wealth spectrums, catering to a diverse and wide base of clients spread across the length and breadth of the country.
Structurally, all businesses are operated through various subsidiaries held through the holding company, Religare Enterprises Limited, which recently concluded its resoundingly successful public offer. The company offers a diverse bouquet of services ranging from equities, commodities , insurance broking to wealth management, portfolio management services, personal financial services, investment banking and institutional broking services . Religare’s retail network spreads across the length and breadth of the country with its presence through more than 1300 locations across more than 400 cities and towns.
As part of its recent initiatives the group has also started expanding globally. Religare has also successfully partnered with Aegon, one of the global leaders to launch Life Insurance, Mutual Fund in India and with Macquarie, for a Wealth Management joint venture. The vision is to build Religare as a globally trusted brand in the financial services domain and present it as the ‘Investment Gateway of India’. All employees of the group , currently more than 10,000 in number, ceaselessly strive to provide financial care driven by the core values of diligence and transparency. pic] Brand Identity Name Religare is a Latin word that translates as ‘to bind together’. This name has been chosen to reflect the integrated nature of the financial services the company offers. The name is intended to unite and bring together the phenomenon of money and wealth to co-exist and serve the interest of individuals and institutions, alike. Symbol The Religare name is paired with the symbol of a four-leaf clover. The four-leaf clover is used to define the rare quality of good fortune that is the aim of every financial plan.
It has traditionally been considered good fortune to find a single four leaf clover considering that statistically one may need to search through over 10,000 three-leaf clovers to even find one four leaf clover. Each leaf of the four-leaf clover has a special meaning in the sphere of Religare. |[pic] | |The first leaf of the clover represents Hope. The aspirations to succeed. The dream of becoming. Of new possibilities. It is the | | | |beginning of every step and the foundations on which a person reaches for the stars. |[pic] | | The second leaf of the clover represents Trust. The ability to place ones own faith in another. To have a relationship as partners | | | |in a team. To accomplish a given goal with the balance that brings satisfaction to all not in the binding but in the bond that is | | | |built. | |[pic] | |The third leaf of the clover represents Care. The secret ingredient that is the cement in every relationship.
The truth of feeling | | | |that underlines sincerity and the triumph of diligence in every aspect. From it springs true warmth of service and the ability to | | | |adapt to evolving environments with consideration to all. | |[pic] | |The fourth and final leaf of the clover represents Good Fortune. Signifying that rare ability to meld opportunity and planning with | | | |circumstance to generate those often looked for remunerative moments of success. | |[pic] | |Hope. Trust. Care.
Good fortune. All elements perfectly combine in the emblematic and rare, four-leaf clover to visually symbolize | | | |the values that bind together and form the core of the Religare vision | Business Structure and Client Interface Retail Spectrum- To cater to a large number of retail clients by offering all products under one roof through the Branch Network and Online mode Equity and Commodity Trading • Personal Finance Services • Mutual Funds • Insurance • Saving Products • Personal Credit • Personal Loans Loans against Shares • Online Investment Portal Institutional Spectrum- To Forge & build strong relationships with Corporate and Institutions • Institutional Equity Broking • Investment Banking Merchant Banking Transaction Advisory Corporate Finance Insurance Advisory Wealth Spectrum – To provide customized wealth advisory services to High Net worth Individuals Wealth Advisory Services • Portfolio Management Services • International Advisory Fund Management Services • Priority Equity Client Services Group companies: [pic] SUBSIDARIES OF RELIGARE. (a) Religare Securities Limited (b) Religare Finvest Limited c) Religare Commodities Limited (d) Religare Insurance Broking Limited (e) Religare Venture Capital Private Limited. Key Events and Milestones Year Events 1994 RSL received membership of the NSE as `stock broker 2000 RSL received membership of the Futures and Options segment of the NSE RSL received registration as `Depository Participant’ with NSDL 2001 RFL received registration as `non-banking financial institution not accepting public deposits with RBI 2002 RSL received registration as `Portfolio Manager’ from SEBI 2003 RSL received registration as `Depository Participant’ with CDSL. 004 RSL received membership of the BSE as `stock broker RCL received membership of MCX as `trading-cum-clearing member RCL received membership of NCDEX as `trading-cum-clearing member 2005 RFL received enrollment as `AMFI registered mutual fund advisor 2006 Establishment of representative office in London. RCL received membership of NMCE. RIBL received licence from IRDA to act as `composite broker’. Joint venture agreement with Aegon International N. V. for carrying on the business of mutual fund asset management. RSL received registration as `Merchant Banker in Category – I from SEBI. 007 RSL received membership of derivative segment of the BSE as trading-cum-clearing member |Industry |: Finance – General |BSE Code |: 532915 |NSE Code |: RELIGARE | |Business Group |: Ranbaxy Group |Face Value |: Rs. 10. 00 |ISIN No |: INE621H01010 | |Chairman / |: Mr. Malvinder Mohan Singh |Market Lot |: 1 |Market Cap |: 3039. 7 (Rs. Cr. ) | Key Officials Name Designation Malvinder Mohan Singh Chairman / Chair Person Sunil Godhwani Managing Director & CEO Ravi Batra Company Secretary and Compliance Officer Management Profile: [pic] Mr. Sunil Godhwani, Chief Executive Officer & Managing Director, Religare enterprises Limited. Background: Sunil Godhwani has been Chief Executive Officer and Managing Director of Religare Enterprise Limited since April 9, 2007. Mr.
Godhwani serves as a Managing Director of Fortis Financial Services Limited Institute, Limited since April 15, 2002. Mr. Godhwani has more than 20 years experience in business. Mr. Godhwani has been a Director of Ranbaxy Laboratories Ltd. , since April 27, 2007, Fortis Financial Services Ltd. since … July 2007 and Religare Enterprise Limited since July 13, 2006. Mr. Godhwani is a Graduate in Chemical Engineering and has a Master’s Degree in Industrial Engineering and Finance from Polytechnic New York. . He served as a Managing Director of Religare Securities Institute, Limited since April 15, 2002.
Mr. Godhwani has more than 20 years experience in business. Mr. Godhwani has been a Director of Ranbaxy Laboratories Ltd. , since April 27, 2007, Fortis Financial Services Ltd. since … July 2007 and Religare Enterprise Limited since July 13, 2006. Mr. Godhwani is a Graduate in Chemical Engineering and has a Master’s Degree in Industrial Engineering and Finance from Polytechnic New York. Other Details Business Group -Ranbaxy Group Industry – Finance – General BSE Code – 532915 NSE Code – RELIGAREEQ Listings – BSE , NSE
ISIN No. – INE621H01010 Incorporation – 30/01/1984 Public Issue Date – 29/10/2007 BOARD OF DIRECTORS OF RELIGARE ENTERPRISES LTD. You can view latest board of directors of the company. |S. No |Name |Designation | |1 |Mr. R K Shetty |Alternate Director | |2 |Capt.
G P S Bhalla |Alternate Director | |3 |Mr. Malvinder Mohan Singh |Chairman / Chair Person | |4 |Mr. Deepak Ramchand Sabnani |Independent Director | |5 |Mr.
Padam Bahl |Independent Director | |6 |Mr. J W Balani |Independent Director | |7 |Mr. Sunil Godhwani |Managing Director & CEO | |8 |Mr.
Shivinder Mohan Singh |Non Executive Director | |9 |Mr. Harpal Singh |Non Executive Director | Key Executives S. No Name Designation 1 Mr. Sunil Godhwani Managing Director & CEO 2 Mr. Ravi Batra Company Secretary and Compliance Officer Quality Statement Quality Policy
Quality is an ever-extending goal – the better you are, the better you need to be. The management of the quality process is infinite, and marked only by milestones, never by completion! Religare recognizes that it needs to constantly improve the quality of its deliverables to match the increasing expectations of customers to fulfill the goal of self-evident quality. Vision To build Religare as a globally trusted brand in the financial services domain and present it as the ‘Investment Gateway of India’ Mission Providing financial care driven by the core values of diligence and transparency.
Brand Essence Religare is driven by ethical and dynamic processes for wealth creation. Religare Securities – Highlights [pic] Equity Broking under three broad categories: – Priority Client Trading (Advise Based Non Discretionary Trading) – Retail Equity Trading (Relationship Manager & Dealing Team) – Online Trading (Self Directed Trading) [pic] Each Vertical creating their own infrastructure. [pic] Improved Ratio of Relationship Manager vs. dealing team. [pic] Gross Brokerage increased 98% from 1428 Million Rs. First Half 07 to 2822 Rs. Million for Nine Months 07. pic] Aggressive ramp up of equity trading client accounts and PMS asset collection. [pic] Established a productive equity research team with wide coverage under Religare Securities Limited. [pic] Received in principal approval from SEBI to be sponsor of Asset Management joint venture with Aegon. [pic] Received P1 Credit Rating from Crisil for its short term debt issuance program for a sum of Rs 7000 million Religare Enterprises Limited Religare Securities Limited – Equity Broking Portfolio Management Services Depository Online Investment Portal Institutional Equity Broking
Religare Finvest Limited – Lending and Distribution business Religare Commodities Limited – Commodity Business Religare Insurance Broking Limited – Life and Non Life Insurance Reinsurance Religare Capital Markets Limited – Investment Banking SEBI Registered Merchant Banker Acquisition in UK through an international arm Religare Arts Initiative Limited – Art Fund and other businesses of Art Gallery to be launched soon Religare Realty Limited – Real Estate Management Company Religare Venture Capital Private Limited – Private Equity and Investment Manager [pic]
New Initiatives – Religare is on a fast and ambitious growth trajectory with some interesting plans in the pipeline |AEGON Religare Life Insurance – Life Insurance Company, a Joint | | | |Venture with Aegon one of the largest insurance and pension companies, globally | | | |[pic]Religare AEGON AMC – Asset Management Company, a Joint Venture with Aegon | |Visit Our Group Companies | | | |www. religaresecurities. com | | | |www. religarefinvest. om | | | |www. religarecommodities. com | |[pic]Religare Finance – Personal Loans / Credit Cards / Loan against Property / | |www. religarearts. com | |Mortgage & Revers Mortgage. | |www. religareinsurance. com | | | |www. religareonline. om | | | | | | | | | |[pic]Online Trading – Agreement with IndusInd Bank to offer online trading | | | |services | | | | | | | | | | | | | | About Us | |[pic]Religare Macquarie Wealth Management Ltd – Wealth | | | |Management Company , a Joint Venture with Macquarie | | | | | |- | | | |About Religare Enterprises | | | | | |[pic]Wealth Management Services – with WallStreet Electronica, Inc. , a U. S. broker – dealer | | | |to give our Indian clients access to U.
S markets | |- | | | |Group Structure | | | | | | | | | |[pic]Religare Securities Ltd – Agreement with Vijay Co-operative Bank Ltd. and | |- | |Tamilnad Mercantile Bank Ltd. o offer offline trading services | |Vision and Mission | | | | | | | | | | | |- | | | |Our Brand Identity | | | | | | | | | | |- | | | |Our People | | | | | | | | | | | |- | | | |Client Interface | | | | | | | | | | | |- | | | |New Initiatives | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |COMPARATIVE ANALYSIS WITH THE MAJOR COMPETITORS IN TERMS | | | |OF THE BROKERAGE CHARGED. | | |P problem recognition: With a lot of companies into the business of stock broking, it becomes | | | |very necessary the company to keep track of the other companies, about their offerings, so as to | | | |know about the options available to the customers in the market. | | | | | | |O objective: To know the brokerage charged by the major players in the industry. | | | | | | | |Rresearch methodology: Qualitative research methodology was used. | | | | | | | | | | |Major players in the industry: | | | | | | | |[pic][pic] | | | | | | | | | | | |[pic] [pic] | | | | | | | | | | | |[pic] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |[pic] | | | | | | | | | | | | | | | |[pic] | | | |Icicidirect (or ICICIDirect. com) is stock trading company of ICICI Bank.
Along with stock | | | |trading and trading in derivatives in BSE and NSE, it also provides facility to invest in IPOs, | | | |Mutual Funds and Bonds. | | | |Trading is available in BSE and NSE. | | |Icici direct offers 3 different online trading platforms to its customers: | | | |Share Trading Account | | | |Wise Investment Account | | | |Active Trader Account Brokerage and fees: | | | |Account opening fees : Rs 750/- (One time non-refundable) | | | |Brokerage: ICICIDirect. om brokerage varies on volume of trade and inclusive of demats | | | |transaction charges, service taxes and courier charges 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 based trades. | | | | | | |[pic] | | | |Sharekhan is online stock trading company of SSKI Group, provider of India-based | | | |investment banking and corporate finance service. S. S. Kantilal Ishwarlal Securities | | | |Limited (SSKI) has been among India’s leading broking houses for more than a century. | | | |Sharekhan’s equity related services include trade execution on BSE, NSE, Derivatives, | | | |commodities, depository services, online trading and investment advice.
Trading is available | | | |in BSE and NSE. Along with Sharekhan. com website, ShareKhan has around 510 offices | | | |(share shops) in 170 cities around the country. | | | |S. No. | | |Type of trade | | | |Brokerage charged | | | | | | | |1. | | | |Intraday | | | |. 1% | | | | | | | |2. | | |Delivery | | | |. 5% | | | | | | | |Type of account: SHAREKHAN Classic account, SHAREKHAN Speed Trade account | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |[pic] | | | | | | | |Indiabulls is India’s leading Financial Services and Real Estate Company having presence | | | |over 414 locations in more than 124 cities. Indiabulls Financial Services Ltd is listed | | | |on the National Stock Exchange, Bombay Stock Exchange, Luxembourg Stock Exchange | | | |and London Stock Exchange. | | | |Type of Account | | |Indiabulls Equity Trading Account | | | |Application Trading Terminal (Need Installation) | | | |Power Indiabulls | | | |Brokerage charged: | | | |Account opening fees: | | | |Rs 1200/- (One time non-refundable) as below: | | | |250/- Equity Trading Account opening charge | | | |200/- Demat Account opening charge | | | |750/- Software charges | | | | | | | | | | | | | | | |Brokerage charged: | | | | | | | |S. No. | | | | | | |Type of Trade | | | | | | | |Brokerage charged | | | | | | | | | | | |1. | | | | | | |Intraday | | | | | | | | | | | |. 1% to . 3% | | | | | | | | | | | |2. | | | | | | | |Delivery | | | | | | | |. 5% to . % | | | | | | | | | | | | | | | | | | | |[pic] | | | | | | | |Reliance Money (or RelianceMoney. com) is the financial services division of the Anil Dhirubhai Ambani | | | |Group promoted Reliance Capital Limited. | | | | | | | |RelianceMoney. com offers most dynamic web based trading environment to its customers.
The new | | | |trading platform has many new features which basically fill up the gap between old online trading companies | | | |in India and their customers. | | | |Stock Trading is available in BSE and NSE. | | |Type of Account | | | |Reliance money is offering 3 types of accounts to its customers. | | | |1) Account for beginners | | | |2) Account for middlers | | | |3) Account for experts. | | |Brokerage charged: | | | | | | | |S. No. | | | |Type Of Trade | | | |Brokerage Charged | | | | | | | |1. | | |Intraday | | | |0. 02% | | | | | | | |2. | | | |Delivery | | | |0. 075% (lowest) to 0. 5% | | | | | | | | | | | | | | | | | | | |[pic] | | | |Kotak Securities Ltd. 100 % subsidiary of Kotak Mahindra Bank is one of the oldest and | | | |largest broking firms in the Industry with a market share of 8. 5 % (as on 30th September). | | | |Their offerings nclude stock broking through the branch and Internet, Investments in IPO, | | | |Mutual funds and Portfolio management service | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |ASSET UNDER CUSTODY | | | | | | | |From the period of 2006-07 till December 2008 here is the brief idea about asset under | | | |custody which includes depositary clients, clients of portfolio management services and | | | |equity assets discretionary portfolio management service. | | | |If we look into the graph of depositary clients below then we find there is a substantial | | | |increment in this category. | | | | | | | | | | |[pic] | | | |Just by looking into the above graph we find that in 2005-06 the number of | | |Depositary clients were 38,181 which touched the number of 109,715, but it increased | | | |dramatically within three months period of time which shows the efforts Religare securities | | | |are hitting to become a top notch company, if we look into the numbers then we find a huge | | | |increment of 35% which could be a good sign for better future prospects. | | |[pic] | | | | | | | | | | | | | | | |[pic] | | | |Now here have a look at the above graphs which shows depositary asset under custody | | | |in millions and clients-portfolio management services which is showing an increment and | | | |this increment can be sign for better future prospects for this company because if company | | | |shows growth then it directly or indirectly effects the brains of the company who are working | | | |continuously for the betterment of the company.
In this series let’s have another look at | | | |Equity assets under discretionary portfolio management service | | | |[pic] | | | |Here in this graph it has been shown how equity assets under discretionary portfolio | | | |management service has increased manifold and presenting a rosy picture of the company | | | |but here company should not relax because it is quit possible that this increment is only | | | |due to some macro economic environment which may or may not last for a very long time | | | |because it is not in the control of any company or organization so here what it is expected to | | | |do to keep working on its all strategies so that it can achieve a better place in the market in | | | |terms of share, clients, market capitalization and so on. | | | | | | | | | | | | | | | | | | | | | | | |