Religare financial p-197 fit hait tabhi to hit hai

It is a matter of great pleasure for me to be associated with Religare Securities Ltd. I,

_______________ hereby would like to thank the team of Religare Securities Ltd, Noida Branch,

for their cooperation during my project work.

I would like to thank Mr. Abhay Sawhney (Sales Manager) for giving me this opportunity. I

am also thankful to Mr. Manish Ajmani (Team Leader) and Mr. Ankur Kapoor ( Corporate

trainer) for providing overall guidance.

Finally, I am thankful to _________________and other faculty members for the continuous

support during the course of project.

This project report is the result of my 8 weeks of the training. Summer internship is an integral

part of the PGDM course, which the student has to undergo and it aims at providing a first hand

experience of the company to the student.

This practical experience helps the students to view the real business closely and correlate the

theoretical concepts better. I am really fortunate for getting an opportunity to have this learning

experience with Religare Securities Ltd

The project assigned to me was “ EQUITY AND FINANCIAL COMPARISION OF

RELIGARE SECURITIES LTD. FROM OTHER DIPOSITORY PARTICIPANTS.”

I found that practical application of various concepts is more interesting than theoretical learning.

Executive summary………………………………………………………………………8

Research and methodology…………………………………………………………...….9

Company profile……………………………………………………………………….....11

Corporate structure……………………………………………………………………….21

Business structure,………………………………………………………………………..22

Investment product…………………………………………………………..…….……..23

Products of religare……………………………..................................................…..……..24

Plans of religare……………………………………………………………………..……32

Competitors of religare………………………………………………….……….……….42

Meaning of symbol of religare………………………………………………….….….…43

Process of opening an account……………………………………….…………...……...45

Process of closing trading account………………………………..……………….…..…48

Process of closing D-MAT account……………………………………...……...….……50

Trade reward…………………………………………………………………………….51

Swot analysis……………………………………………………….……………..……..54

Where people do invest money…………………………………………….……………58

Stock trading(Equities)

Basic concepts…………………………………………………...……………………….59

Stock exchange……………………………………………………..…………………….60

Function of stock market………………………………………..………………….…….63

Commodity market……………………………………………………….….……….…..64

Indices (Sensex)……………………………………………………………………..……66

Nifty……………………………………………………………………….…………...…67

Transaction cycle……………………………………………………...……………….….68

Trading terminologies………………………………………………………….…….……70

Trade types………………………………………………………………………..……….74

Proposed offering of religare…………………………………….…………………..……..75

What is D-MAT…………………………………………………………………..………..77

Types of account……………………………………………………..…………..…….…..78

derivatives…………………………………………………………..………..….……….81

Options………………………………………………………………………..….………..82

Mutual fund…………………………………………………….……………..….……….85

IPO’s…………………………………………………………….…………….…..……….88

Insurance………………………………………………………………..……..……..…….89

Trading in equity……………………………………………………….…………………90

Comparison of religare with…………………………………………….………….......101

ICICI.direct.com……..102

Sharekhan…………….104

5Paisa.com……………109

Kotakstreet.com………114

Indiabulls……………..118

Analysis of comparison………………………………………………………………..123

Limitations…………………………………………………………………………..….128

Suggestions…………………………………………………………………………….129

Bibliography…………………………………………………………..….…………….130

Appendix………………………………………………………...………………..……131

Annexures……………………………………………………………………..…….…160

Questionnaire and interpretation…………170

Case Study……………………………………………………………………………..188

Synopsis of the report………………………………………………………………….195

Religare securities ltd is in the process of increasing its presence in India. It is trying to identify

potential opportunities in the major cities of India.

Being with Religare securities ltd as a summer trainee for 8 weeks has given me a key learning

in the area of share market. I learnt about the D-MAT A/C of the different companies. I learnt

how to capture a customer base with Religare.

The sample size was 5 and finally tried to suggest a set of recommendation for increasing the

awareness about Religare securities ltd, which would ultimately helps in increasing the customer

base.

The study was conducted in Noida branch at sec-18.

1. Objective of the study:

• To get more practical knowledge about the equity.

• To analyze the factors for investment in the market.

• Comparison between the some securities to choose which is lacking in which

part.

• To find out the current brand image of Religare Securities Ltd in the mind of the

respondents by way of comparison from other depository participants.

2. Hypothesis:

Assuming that Religare Securities Ltd has good brand image in the market on the basis of

following parameters;

• It follows penetration strategy, means it has main focus on increasing customer’

base.

• It provides a valuable products to its customers.

3. Research and Sample design:

There are many depository participants in the market but I researched only 5 companies

like ICICI direct, Sharekhan, Indiabulls,5paisa.com and Kotakstreet.com.

4. Scope of the study:

• To understand the key parameters that influence the choice of the depository

participants.

• To judge the awareness and perception held on Religare Securities Ltd and key

competitors(ICICI direct, HDFC bank, Indiabulls,Sharekhan and India-infoline)

• To analysis the customers’ evaluation of the current depository participants.

Religare a company promoted, controlled and managed by the promoters of Ranbaxy was

founded with the vision of providing integrated financial care driven by relationship of trust. To

realize its vision, the company provides both, fund-based and non-fund based financial services

to its clients. These services include Broking (Stocks and Commodities), Depository Participant

Services, and Advisory on Mutual Fund Investments. The clients of the company greatly benefit

by its strong research capability, which encompasses fundamentals as well as technicals.

Religare provides integrated financial solutions to its corporate, retail and wealth man-agement

clients through Religare Securities Limited, Religare Finvest Limited, Religare Commodities

Limited and Religare Insurance Broking Limited. Today, we provide various financial services

which include Investment Banking, Corporate Finance, Portfolio Management Services, Equity

& Commodity Broking, Insurance and Mutual Funds. Plus, there’s a lot more to come your way.

• Religare in recent past has been constantly innovating in terms of the product and

services, which it offers, and in this respect it has started a premium NRI, FIs, HNIs, and

Corporate Servicing group. This group specifically caters to the growing investment needs of

these premium client categories by taking all their portfolio investment decisions depending upon

their risk / return parameter.

• Religare has a very credible team in its Research & Analysis division, which not only

caters to the needs of our Institutional clients but also gives valuable input to Investment

Dealers / Investors.

• Religare is also giving in house depository services to its clients and it is amongst the

leading Depository service providers in the country managing more than Rs. 6000 crores

worth of shares under its electronic custody.

• Religare among capital market investment fraternity has carved a niche in per-formance

levels. We endeavor constantly to our motto of providing customized services to our

clients.

Industry : Finance - General BSE Code : 532915 NSE Code : RELIGARE
Business Group: Religare Face Value : Rs. 10.00 ISIN No : INE621H01010
Chairman / : Mr. Malvinder Mohan Singh Market Lot : 1 Market Cap : 2979.935 (Rs.Cr.)

Registered & Corporate Office Registrar & Share Transfer Agent

19, Nehru Place, , , New Delhi, Delhi - 110019 Karvy Computershare Private Ltd

Tel: 30815100/66552200, , , Plot No. 17-24, Vittal Rao Nagar, Madhapur,

Fax: 30815288, Hyderabad - 500081, Andhra Pradesh.

Email: investorservices@religare.in Tel: 23420818, 23420824

Website: www.religare.in

Key Officials

Name Designation
Malvinder Mohan Singh Chairman / Chair Person
Sunil Godhwani Managing Director & CEO
Ravi Batra Company Secretary and Compliance Officer
Other Details

Business Group Ranbaxy Group
Industry Finance - General
BSE Code 532915
NSE Code RELIGAREEQ
Listings BSE , NSE
ISIN No. INE621H01010

RELIGARE ENTERPRISES LTD.

Stock prices are delayed by 15 minutes on BSE, 5 minutes on NSE.

Exchange BSE NSE
Last Traded Price 389.00 389.50
Last Traded Date 7/28/2008 7/28/2008
Last Traded Time 3:48:00 PM 3:50:21 PM
Change (Rs.) -2.60 -2.50
% Change -0.66% -0.64%
Day's Open 393.95 386.00
Previous Close 391.60 392.00
Day's High 393.95 394.00
Day's Low 387.95 386.00
Total Traded Volume (Rs. In Crores) 2.35 26.98
Bid Price 387.00 389.50
Bid Quantity 10 256
Offer Price 389.00 0.00
Offer Quantity 235 0
Total Traded Quantity 2,468 6,114
Number Of Trades 226 398

52 Week High / Low's

Exchange High High Date Low Low Date
BSE 730.00 1/3/2008 323.75 11/21/2007
NSE 729.00 1/2/2008 312.70 3/26/2008

BOARD OF DIRECTOR:

S.No Name Designation

1 Capt. G P S Bhalla Alternate Director
2 Mr. R K Shetty Alternate Director
3 Mr. Malvinder Mohan Singh Chairman / Chair Person
4 Mr. J W Balani Independent Director
5 Mr. Padam Bahl Independent Director
6 Ms. Sunita Naidoo Independent Director
7 Mr. Deepak Ramchand Sabnani Independent Director
8 Mr. Sunil Godhwani Managing Director & CEO
9 Mr. Shivinder Mohan Singh Non Executive Director
10 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

• Religare Enterprise Ltd is a Ranbaxy promoter group company

• 6 Regional offices

• 25 Zonal Offices

• Present in 1000 location all over India

• Present in 350 Cities & Towns

• Total group employees 5,500 plus

• Present in Retail, Wealth and Institutional Spectrum

• Among the largest Retail brokerage branch network, present beyond Tier-I and Tier-II

cities in India

• Overseas presence established in London, with aggressive plans of straddling other parts

of the globe in this financial year

Religare Enterprises - Allotment of Equity Shares under ESOS 30/06/2008
Religare Enterprises fixes Book Closure for Dividend & AGM 28/06/2008
Religare Enterprises - Results Press Release 27/06/2008
Religare Enterprises Board recommends dividend 26/06/2008
Religare Enterprises - Press Release 24/06/2008
Religare Enterprises clarifies on news item 24/06/2008
Religare Enterprises - Clarification on News Item 23/06/2008
sReligare Enterprises - Clarification on News Item 18/06/2008
Religare Enterprises - Allotment of Equity Shares under ESOS 02/06/2008

Announcement:

AGM/EGM

Announcement Purpose Date FromDate ToDate Remarks
27/06/2008 AGM 20/09/2008 16/09/2008 20/09/2008 11% Dividend

Corporate Structure

Religare Finvest
Religare Wealth
Ltd
Religare Management
Securities Ltd Services Ltd

Religare Religare Capital
Commodities Markets Ltd
Ltd
Religare
Enterprises Ltd
Religare Finance
Religare
Ltd
Insurance
Broking Ltd

Religare Venture Religare Realty
Capital Pvt Ltd Ltd

Business Structure
Client Interface

Retail Spectrum Institutional Spectrum Wealth Spectrum

To cater to a large number of retail To Forge & build strong To provide customized wealth
clients by offering all products relationships with Corporate advisory services to High Net
under one roof through the Branch clients and Institutions worth (HNI) Individuals
Network and Online mode

Institutional Broking Wealth Advisory Services
Equity and Commodity Trading
Portfolio Management
Personal Finance Services Investment Banking Services
Mutual Funds Merchant Banking International Advisory Fund
Insurance Transaction Advisory Management Service (AFMS)
Savings Products Corporate Finance
Priority Equity Client Services
Personal Credit
Arts Initiative
Personal Loans
Loans against Shares

Online Investment

1- R-ACE (BASIC)

2- R-ACE LITE (ADVANCED)

3- R-ACE PRO (PROFESSIONAL)

• Account activation charges Rs. 299/-

• Minimum Margin Money Requirement – Rs. 5000

• No software installation required, easily accessible on browser

• NSE cash segment, NSE F&O and BSE on single platform

• Trade online and over phone

• Access your ledger balances and account information over internet and phone

• Online transfer of funds through internet payment gateway

R-ACE Basic: A Browser based trading platform that is easy to navigate with advanced stock

trading features. Customers can get quotes, trade, manage their accounts all from a single

platform.



• No software installation required, easily accessible on browser


• Real-time streaming quotes

• Hot key functions for faster trading


• Access your ledger balances and account information over internet and phone


R-ACE Lite (Advanced) : An Applet based trading platform, providing access to live streaming

quotes, multiple market watch, message window and trading window, all in one screen, to help

customers track individual stocks and make timely trades when investing online.



• Traders terminal on your desktop


• Real-time streaming quotes

• Technical charting (Intraday and EOD)

• Multiple watch list

• Advanced hot-key functions for faster trading

• Derivative chains

• Futures & Options calculator

• Access your ledger balances and account information over internet and phone.



R-ACE Pro (Professional) : For active traders. Launches directly from the trader's desktop and

offers advanced charting capabilities, technical analysis allowing them to execute a quick &

better trading decisions.

Existing Banking Gateways…

• Citibank

• HDFC Bank

• ICICI Bank

• Axis Bank

• IndusInd Bank

Religare is tie-up above 5 banks , it means only with these bank , client can do online trading.

(1)Race lite + Trump plus And trump Super

Account opening – Rs.499 and Rs.2500 as a advance Brokerage for a year.

Intraday Brokerage- 0.025%, Delivery-0.25%

Trump Account

Particulars Trump Plus Trump Super
Cost of Subscription Rs. 2,500 Rs. 15,000
Validity Period 12 Months 12 Months
Brokerage on Delivery Trades 0.25% 0.15%
Brokerage on Intraday Trades 0.025% 0.015%
Brokerage on F&O Trades 0.025% 0.015%

Terms & Conditions:

• Brokerage will be charged at the rates as mentioned in the applicable brokerage table, during

the tenure of scheme.

• During the tenure of scheme brokerage charged shall be reversed to a maximum of cost of

subscription only.

Brokerage over and above it within the tenure of plan will have to be paid by the client at

the same rate as quoted above

• Taxes, duties and other charges shall be charged apart from above specified brokerage as

applicable from time to time.

• Minimum brokerage per scrip would be 1p

• This plan would expire, at the expiry of the applicable validity period of account; and

thereafter it shall be renewed on the same terms and conditions.

(2)Race lite + Freedom(Rs 4500)

Account opening – Rs.499 and Rs.4000 as a advance Brokerage for a year.

Intraday- Rs.3, 00,000 Free Daily after this 0.03%

Delivery-Rs.40, 000 Free Daily after this 0.30%

Free Volumes Allowed
Daily Free Intraday & Derivative Volumes Rs. 3,00,000
Daily Free Delivery Volumes Rs. 40,000

Calculation of Free Volumes
NSE NSE NSE BSE BSE
Segment Total
cash Futures T2T Cash T2T
Free Intraday/Derivative Volumes 100,000 100,000 N.A. 100,000 N.A. 300,000
Free Delivery Volumes 10,000 N.A. 10,000 10,000 10,000 40,000

Brokerage (on daily volumes)#
Intraday / Derivative Delivery
Volume (in Rs.) Brokerage Rate Volume (in Rs.) Brokerage Rate
Upto 1 Lakh 0% Upto 10,000 0%
1 Lakh - 10 lakh 0.03% 10,000 - 1 Lakh 0.30%

10 Lakh - 1 Cr 0.02% 1 Lakh - 10 Lakh 0.20%
1 Cr - 3 Cr 0.015% 10 Lakh - 30 Lakh 0.15%
Above 3 Cr 0.01% Above 30 Lakh 0.10%

** Non Refundable

# Brokerage will be calculated on exchange wise and segment wise basis. Brokerage on trades above free

volumes will be charged at the flat rate of the slab in which the client falls on any particular day. For

example: If intraday volume in NSE segment is Rs. 25,00,000/-, total brokerage would be Rs. 480 {First

1 Lakh would be free and rest would be charged @0.02% as per the volume slab; i.e(25,00,000 -

1,00,000)*0.02%}

Features of Freedom Account:

• minimum brokerage requirement per contract note.

• No minimum brokerage requirement per trade.

• Minimum brokerage per scrip is 1p (for extra trades above free volumes).

• Charges on delayed payment @ 16% p. a..

• Lifetime free AMC in Depository Account.

• Interest on cash margin lying with us @ 3.5% p. a.

• Other statutory charges, taxes and duties to be charged extra as applicable.

Disclaimer: Brokerage and interest rates are subject to change without notice.

(3) Classic Plus (Rs 1175/-)

A/C Opening: - Rs 499+ Rs 675 as brokerage for a period of six months.

Brokerage :- Intraday – 0.05%

Delivery – 0.50%

*Brokerage will be deducted from these 675.

Terms & Conditions:

• Brokerage will be charged at the rates as mentioned in the applicable brokerage table,

during the tenure of scheme.

• During the tenure of scheme brokerage charged shall be reversed to a maximum of cost of

subscription only

• Brokerage over and above it within the tenure of plan will have to be paid by the client at

the same rate as quoted above.

• Taxes, duties and other charges shall be charged apart from above specified brokerage as

applicable from time to time.

• Minimum brokerage per scrip would be 1p

• This plan would expire, at the expiry of the applicable validity period of account; and

thereafter it shall be renewed on the same terms and conditions.

(4)Classic lite (Rs.5499/-)

A/c Opening: - Rs 499 + Rs5000 as margin which will reflect in your account and you can trade

upon that Money .

Features:-

• Lifetime free Depository Account.

• Interest on margin money 3% p.a.

• Online fund transfer facility with five banks

I.e ICICI bank, HDFC bank, Axis bank, Citi bank& Indusind bank.

• Online & Offline trading facility.

• Research Reports available on our Website.

• Online IPO’s applying facility.

• *Margin trading facility upto 20 times on intraday

• Free zero balance saving a/c in icici bank for online fund transfer

Facility at the same time.

Brokerage and other charges:s

Any transaction entered attracts brokerage. Brokerage is debited in the account at the end of the

day.

RACE Classic:

Monthly Turnover Monthly Turnover (1 Monthly Turnover (More

(Less than 1 cr.) cr. to 5 cr.) than 5 cr.)
Intraday 0.05% 0.04% 0.03%
Delivery 0.50% 0.40% 0.30%
Derivates 0.05% 0.04% 0.03%

RACE Freedom:

Brokerage (on daily volumes)#
Intraday / Derivative Delivery
Volume (in Rs.) Brokerage Rate Volume (in Rs.) Brokerage Rate
Upto 1 Lakh Nil Upto 10,000 Nil
1 Lakh - 10 lakh 0.03% 10,000 - 1 Lakh 0.30%
10 Lakh - 1 Cr 0.02% 1 Lakh - 10 Lakh 0.20%
1 Cr - 3 Cr 0.015% 10 Lakh - 30 Lakh 0.15%

Above 3 Cr 0.01% Above 30 Lakh 0.10%

Other Charges:

NSE
CHARGED F & O BSE CASH
CHARGES CASH in
ON in % %
%

BROKERAG
Service Tax 12.24 12.24 12.24
E

Other Charges (Stamp Charges+ Turnover 0.0055 0.0057
TURNOVER 0.0041
Charges) ( Intra day ) (Jobbing) (Jobbing)

STT (Intra day) (Applicable on Selling side
0.025 0.017 0.025
only)

Other charges (Stamp+ Turnover
TURNOVER 0.0135 0.0137
Charges) (Delivery)

STT (Delivery) TURNOVER 0.125 0.125

Indiabulls

HDFC mutual fund

ICICI direct.com

5Paisa.com

SMC

Reliance money

India infoline

Sharekhan

Kotakstreet.com

The name is paired with the symbol of a four-leaf clover , a rare mutation of the common three-

leaf clover. Traditionally, it is considered good fortune to find a four leaf clover as there is only

one four-leaf clover for every 10,000 three-leaf clovers found.Each leaf of the four-leaf clover

has a special meaning in the sphere of Religare.

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.

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.

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.

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.

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.

Following procedure is to be followed for RACE account opening:

1. In case of Power of Attorney a minimum of Rs. 50 of stamp duty is required to be

attached in the form of stamp paper, except in cases of some states. Furthermore the stamp paper

should be purchased in the state where the client has executed the document

2. The Agreement need not be notarized.

3. The forms once punched should be sent in the pre-addressed envelopes for this purpose

to Fortis Financial Securities Ltd ,255, 1st Floor Okhla Industrial Estate ,Okhla Phase -3 , New

Delhi- 20

4. In case a client wishes to transfer his existing R-ALLY account to R-ACE then please

follow the procedure mentioned hereunder:

• Fill up new R-ACE form (The client has to pay initial account opening charges and

margin by way of stock/cash)

• His existing trading account would be suspended (Client has to clear all his outstanding.

In case he has credit in his ledger balance, same would be returned to the client.)

• A new depository account would be opened that would be mapped to new R-ACE

account

• A new trading account would be opened in R-ACE client code format

• His existing Depository account (if any) would be deactivated/closed after transferring

shares, so that his depository account balances are NIL. He would also be required to clear all his

outstanding.

• Branch will check the proper filled closure request form received from clients.

• In case of RACE & LAS demat a/c closing form need to be collected compulsorily

along with DIS booklet the pending charges will be debited to his trading a/c by HO.

Additionally Bank a/c closing is required to close LAS a/c.

• In case of corporate a/c board resolution is required along with the closure request.

• Will check the margin and outstanding positions open for the a/c. If there is any

margin shortage / outstanding sales or pending auctions & settlements will keep the

form pending until clearance of same.

• Will check that the ledger balance mentioned in the form tallies with the ledger

balance in LD.

o In case of debit in the a/c will ask client to clear the same immediately for

further processing.

o In case the balance mentioned in the form doesn’t match with the balance in

BackOffice, branch will issue and explain the statement of a/c to the client and

will ask the corrected closing letter.

• Will check if there are any stocks lying in pool a/c.

o If there is any stock lying in Broker beneficiary a/c; on clearance of financial

debit branch will request for stock transfer to the clients DP a/c as per client’s

request.

o If there is no stock lying / is transferred to clients depository account; on

confirmation from branch manager a scan-copy of closure request should be

sent to request@religare.in in HO for final closing.

• On clients issues / problems reported Branch manager / Relationship manager should

to put remarks.

• Branch will check the holdings of requested demat a/c.

o In case of stock lying in demat a/c, will request client to transfer the stocks to

desired a/c.

o In case of no stocks or after clearing the stocks in requested a/c process the

closure request further.

• Branch will check the pending DP charges.

o In case of pending DP charges will ask client to clear the same immediately

o In case client has already paid will process the request.

* For Corporate & partnership firm a/c’s Board Resolution is required.

• Trade Rewards is a unique offering from Religare that gives you dual benefit of a hassle

free investment experience on the net as well as an opportunity to earn while you invest

with us.

• So earn Reward points each time you trade in equities and commodities or invest in your

favorite IPOs Online with us through our highly sophisticated and customized trading

platform R-ACE (Religare Advanced Client Engine)

How to earn reward points?

Investment Basis of Points
Value (Rs.)
type/Instrument calculation Earned

Equity Trading 20.00 Brokerage 10

Commodities Trading 15.00 Brokerage 10

IPO Application 20,000.00 Application Value 10

IPO Allotment 10,000.00 Allotment Value 10

How To Redeem Reward Point:

The reward points accumulated by customers can be redeemed using the ‘Redemption’ option in

the Trade Reward section.

They can start redeeming their reward points against our list of attractive Gift Vouchers and

offers

Strength

• Religare is one of the fastest growing share trading company.

• It has a great brand name of Ranbaxy Group associated with it for promoting its product.

• The Religare is the only online share trading company that gives interest on cash margin.

• Religare offer trade reward also which is a unique feature of Religare.

• Customer will get a zero balance saving account in ICICI bank after opening online

demat account In Religare.

• Religare provide lifetime free demat account, i.e. no annual maintenance charges.

• Religare also provide 20 times exposure on intraday trading.

• The employees of the company are quiet enthusiastic about the betterment of the

company.

• The company gives utmost respect to customer service.

• The company has a good relation with its channel partner.

Weakness

• The company does not have a permanent online office in Varanasi so many people might

feel hesitation in investing in Religare.

• At the time of account opening its margin money of Rs. 5000 is one of the factor which

sometime discourages customers to go for it while its competitors does not require any

margin money at the time of opening demat account.

Opportunities

• The number of people of Varanasi who have knowledge about share trading is quiet less

so if they can be taught about the benefits of investing Religare then the company can

cover a big revenue.

• People who have knowledge about share trading are not willing to invest due to the loss

beard by them by investing in wrong shares at the wrong time, so if these people can be

motivated then the company can earn big revenue.

• Since most of the broking houses have been established in Varanasi (City area) so their

most of the customers belongs to city only. The rural area is untouched area where a lot

of potential is available for these kinds of broking houses. This area is called virgin area.

So if Religare target these areas so the company can create a number of new customers

and also earn big revenue.

Threats

• Apart from Religare securities limited, other broking houses have permanent office in

Varanasi so people may be more attracted in investing in other company's broking

houses.

• Religare has been launched before some times in Varanasi. The other broking houses

have been established before Religare, so they have more customers than Religare. Also

they have made the market concentrated so Religare may find difficulties in making new

customers.

Where do People Invest Money?

• Savings in banks account
• Fixed Deposits
• Postal Savings
• Insurance
• Real Estate
• Gold
• Stock Markets

What is a share?

• Having a share of a company means you own a part (SHARE) of the company

Shares as IPO’s

• Initial Public Offering (IPO) is when an unlisted company makes either a fresh

issue of securities or an offer for sale of its existing securities or both for the first

time to the public.

• The shares could be bought by fulfilling a simple formalities (online through

religare website)

• Post IPO the shares are listed on a Stock Exchange – a stock exchange is a place

where the already issued shares of a company are bought and sold.

Stock Exchange Working……..

Buyer of Share Seller of Share

Broker Broker

Stock Exchange

Money
Share

+

• There are 23 National and Regional stock exchanges in India

• 2 are National Level Stock Exchanges : National Stock Exchange of India Ltd (NSE) &

Bombay Stock Exchange (BSE) while rest 21 are Regional Stock Exchanges (RSE).

• The Indices: An index is a benchmark that captures the movement of the share market.

– S&P Nifty: NSE stock index comprising 50 scrips

– Sensex: BSE stock index comprising 30 scrips

Stock Exchanges in India

NSE BSE
National Stock Exchange Bombay Stock Exchange

BSE - Bombay Stock exchange is one of the oldest stock exchanges in Asia with over 6,000

stocks listed

NSE - National Stock Exchange is one of the leading stock exchanges in India. The NSE has

been set up by leading institutions to provide a modern, fully automated screen – based trading

system with national reach.

Market Timings:

Equity / Cash Market

Market Time will vary in case of Sun Outage informed by Exchange

National Stock Exchange: 09:55 a.m. – 03:30 p.m. (Mon-Fri)

03:40 p.m. – 04:00 p.m. (post close)

Bombay Stock Exchange: 09:55 a.m. – 03:30 p.m.( Mon-Fri)

03:40 p.m. – 04:00 p.m. (post close)

• Raise resources for companies and business ventures through public issues.

• Transfer of resources from those having idle resources (investors) to others who have a

need for them (corporates).

• Provide channels for reallocation of savings to investments and entrepreneurship.

Securities in which one can invest:

• Equity

• Government Securities

• Derivative products

• Units of Mutual Funds

Commodities market is particularly significant to our country as India is essentially a commodity

based economy. The various commodities being traded on the exchanges include precious

metals, crude oil, agro-commodities etc.

Commodity Market - Exchange

NCDEX
MCX multi commodity
exchange National Commodity & Derivative
Exchange Limited

NMCE

National Multi - commodity Exchange
of India

Market Timings

MCX (Multi Commodity Exchange): 10:00 a.m. – 11:55pm (Mon-Fri)

Saturday (10:00-14:00)

NCDEX (National Commodity and Derivative Exchange): -

10:00 a.m. – 11:55 pm(mon-Fri)

Saturday (10:00-14:00)

NMCE (National Multi Commodity Exchange of India): -

10:00 a.m. – 05:00pm(Mon-Fri)

Saturday (10:00-14:00)

Sensex:

It is an index that represents the direction of the companies that are traded on the Bombay Stock

Exchange, BSE. It captures the increase or decrease in prices of stocks of companies that it

comprises.

Currently, all the 30 stocks that make up the Sensex have reached a value of 15,355 points.

These companies represent the myriad sectors of the Indian economy. A few of these companies

and the sector they represent are: ACC (cement), Bajaj Auto, Tata Motors, Maruti (automobile),

Infosys, Wipro, TCS (information technology), ONGC, Reliance (oil & gas), ITC, HLL (fast

moving consumer goods) etc.

Each company has a weight assigned to it. Companies like Reliance, Infosys, and HLL have

higher weightages compared to others like HDFC, Wipro, or a BHEL.

The increase or decrease in Sensex, is the effect of a corresponding increase or decrease in the

stock market price of these 30 companies. Sensex is the benchmark that represents Indian equity

markets globally.

It is the Sensex's counterpart on the National Stock Exchange(NSE).

The only difference between the two indices (the Sensex and Nifty) is that the Nifty comprises of

50 companies and hence is more broad-based than the Sensex. The Nifty 50 or the S&P CNX

Nifty as the index is officially called has all the 30 Sensex stocks.

The NSE Nifty functions exactly the way as the BSE Sensex does.

What is Rolling/Normal Settlement?

Under rolling settlement all open positions at the end of the day mandatorily result in payment/

delivery ‘n’ days later. Currently trades in rolling settlement are settled on T+2 basis where T is

the trade day.

For example: A trade executed on Monday is mandatorily settled by Wednesday (Considering

two working days from the trade day). The funds and securities pay-in and pay-out are carried

out on T+2 days.

A tabular representation of the settlement cycle for rolling set-tlement is given below:

Order book: The order book shows the complete list of orders placed for a particular day. Once

the order gets executed they go into the trade book.

Open position: The position which is not yet closed. E.g. when you buy 1 share and have not yet

sold it then your open position is 1 and when the share gets sold than the position stands nil.

Exposure: Exposure is x times the cash deposited. Suppose the exposure is 6 times, this means

that if the cash deposited is Rs 1000, the total exposure would be Rs. 6000.

Gross Allocated Exposure: It is the virtual amount spent. When order is placed, the quantity

multiplied by price of each share will be deducted from the gross exposure available.

Net used exposure: It is the real amount spent. When the order gets traded, the quantity

multiplied by price at which the order gets traded will be deducted from the net exposure

available.

Trade log- Trade Log is the detail of transactions done by a client on a particular day

Futures calculator: The futures Calculator helps to calculate the Fair Value of a particular

Future Contract given the spot price, expiry date, interest rate and dividend yield.

Obligation: The stock for which the delivery has not been received yet, are reflected in the

Obligation report. Once the delivery comes i.e. on t+2 days, the same will be reflected in the

Asset report.

Assets reports: Asset Report shows the total holding in ones account as on date.

Options calc: The options calculator calculates the option price or volatility for a particular

options contract given the Option type i.e. Call or Put, Spot Price, Strike Price, Time until expiry,

Interest Rate and volatility or Option Price depending on what needs to be calculated.

LTP- Last Traded Price

TTQ - Total Traded Quantity

TTV - Total Traded Volume.

Limit: A limit order is an order to buy or sell a security at a specific price. A buy limit order can

only be executed at the limit price or lower, and a sell limit order can only be executed at the

limit price or higher.

Market: Market orders are orders for which price is specified as 'MKT' at the time the order is

entered. For such orders, the system determines the price.

Stop-Loss: This facility allows the user to release an order into the system, after the market price

of the security reaches or crosses a threshold price called trigger price.

Example: If for stop loss buy order, the trigger is Rs.93.00, the limit price is Rs.95.00 and the

market (last traded) price is Rs.90.00, then this order is released into the system once the market

price reaches or exceeds Rs.93.00.This order is added to the regular lot book with time of

triggering as the time stamp, as a limit order of Rs.95.00.All stop loss orders are kept in a

separate book (stop loss book) in the system until they are triggered.

Trigger Price: Price at which an order gets triggered from the stop loss book.

Limit Price: Price of the orders after triggering from stop loss book

Trading System: The trading system features and user navigation for Market are described

below.

Quantity :Order quantity should be in multiples of Market Lot.

Price :Members can enter either market orders or limit price orders. Order price for limit price

orders should be in multiples of tick size.

Order Cancellation/Modification : Order cancellation and modification is allowed for orders

entered. Order cancellation functionality can be performed only for orders which have not been

fully or partially traded (for the untraded part of partially traded orders only) and only during

market hours.

Net Position :The Net Position screen displays consolidated statistics for all markets as well as

separately for each market.

Delivery Trades

This intimates the system to take delivery for the order placed. Incase of buy order, the system

will block the entire amount for the order placed. Incase of delivery sell order, one should check

the demat stock availability, once the order is accepted in the exchange the quantity put for sale

is blocked. Once the sell order is executed the entire amount generated from the sell trade will be

available for trading for further trading

Intraday or Square-off trades

Intraday price movements are particularly important to short-term traders looking to make many

trades over the course of a single trading session. The term intraday is occasionally used to

describe securities that trade on the markets during regular business hours.

ObligationTrades (BTST)

In case of Obligation trades, the customer may buy shares of a company to-day and sell of the

shares bought the very next day before the actual settle-ment

Lets say, if you buy 100 INFOSYS today at 3500 and tomorrow if the rate goes upto 3800, can

you sell the same

1. Manage Account Trading (R-ALLY)

• Offline

• Trade over phone at branches

• Online Trading to be allowed only on browser through iNet.net

2. Net Account Trading (R-ACE)

• Online

• Square-off rights only dealer at branch level

• Trade over phone at call centre

• Online trading to be allowed through various modes: browser and application

No call center support Call center support provided for trading,

back-office and IT support

Full branch level support Minimum branch level support

High level of manual intervention for Fully automated processes

flexible processes

Basic software Feature-rich software

• Dematerialization is a process in which physical share certificates are converted into

electronic shares

• For the ease of settlement and many millions of transactions – the shares are traded in

electronic format

• The physical share certificate needs to be converted to Dematerialized format for

enabling trading

• Depository : The organization responsible to maintain investor's securities in the

electronic form is called the depository

• CSDL & NSDL are the 2 depository providing their services in India

• These Depositories are linked with Depository Participant (e.g. Religare Securities Ltd)

who are involved in servicing the customer for all Demat needs.

Demat Account

Demat is an account similar to a Bank account in which shares are held in electronic form.

Demat account is maintained by depositories (NSDL and CSDL and access is provided by DPs

e.g. Religare)

Savings Bank Account

An account with the bank where you keep your money and withdraw as and when needed (In this

case for trading purpose)

Trading Account

An account with the DP through which all the transactions are routed

EQUITY:

Equity investments are securities which represent ownership in businesses. This ownership is

purchased in the form of shares.

There are two ways in which you can invest in equities:-

• Primary market (by applying in IPOs)

• Secondary market (by buying shares listed on stock exchanges)

Advantages:-

• It is most liquid asset class

• It has a potential of high returns to the investors

• Investors can earn dividend income, as well as capital gains when the share prices shoot

up

• Equity shares gives ownership and control of the company.

Equity vs. Other Asset Classes

Empirical study suggests that Equity markets have outperformed all other asset classes

Source: www.moneypore.com

• The term "Derivative" indicates that it has no independent value.

• Its value is entirely "derived" from the value of the underlying asset.

• The underlying asset can be securities, commodities, bullion, currency, live stock or

anything else.

Types:

• Futures Contracts

• Options

• A futures contract is an agreement between two parties to buy or sell securities at a

certain time in the future at a certain price.

• Futures contracts are standardized exchange-traded contracts.

• An option gives the holder of the option the right to do the something.

• Option holder has the right but not the obligation to exercise.

• The purchase of an option requires an up-front payment.

Options Terminology

• Index Options : India VIX based on the Nifty 50 Index Option prices.

• Stock Options

• Call Option : Option to buy

• Put Option : Option to sell

• Option buyer : One who buys the option. He has the right to exercise the option but no

obligation.

• Option seller : One who gives/writes the option. He has an obligation to perform, in case

option buyer desires to exercise his option.

• An investor buys one European call option on Infosys at the strike price of Rs. 3500 at a

premium of Rs. 50. If the market price of Infosys on the day of expiry is Rs. 3600

The investor's Break even point is Rs. 3550 (Strike Price + premium paid) i.e., investor

will earn profits if the market crosses above Rs. 3550.

• However, If at the time of expiry stock price falls below Rs. 3500 say suppose it touches

Rs. 3000, the buyer of the call option will choose not to exercise his option.

In this case the investor loses the premium (Rs 100), paid which shall be the profit

earned by the seller of the call option.

• An investor buys one European Put option on Reliance at the strike price of Rs. 300/-, at

a premium of Rs. 25/-. If the market price of Reliance, on the day of expiry is less than

Rs. 300, the option can be exercised.

The investor's Break even point is Rs. 275 (Strike Price - premium paid) i.e.,

investor will earn profits if the market falls below 275.

• Suppose stock price is Rs. 260, the buyer of the Put option immediately buys Reliance

share in the market @ Rs. 260/- & exercises his option selling the Reliance share at Rs

300 to the option writer thus making a net profit of Rs. 15 {(Strike price - Spot Price) -

Premium paid}.

• In another scenario, if at the time of expiry, market price of Reliance is Rs 320/ - , the

buyer of the Put option will choose not to exercise his option to sell as he can sell in the

market at a higher rate. In this case the investor loses the premium paid (i.e Rs 25/-),

which shall be the profit earned by the seller of the Put option.

• A MF is a pool of money put together by Investors – called as unit holders – who share a

common goal.

• The money thus collected is invested by professional fund managers in different types of

securities depending upon the objectives of the scheme.

• The Mutual Fund is managed by a Asset management Company (AMC)

• NAV : It's the fund's assets minus its liabilities divided by the number of outstanding

shares.

• Sales Load : Is a charge collected by a scheme when it sells the units. Also called, ‘Front-

end’ load. Schemes that do not charge a load are called ‘No Load’ schemes (Entry and

exit Load)

• NFO.

Advantages of MF

• Professionally managed portfolio

• Diversified portfolio

• Low cost of investment (economies of scale)

• It is possible to invest in small amounts.

• Simplicity

• Choice of schemes

• Various tax benefits are granted to investors of Mutual Funds e.g. ELSS scheme.

• At Religare one can invest Mutual Funds online.

• One can do online purchase and redemption in all the Schemes .

• One can check Latest (previous day) NAV’s and Invest online in NFOs of all the Mutual

Fund Schemes.

• One has the option of investing through the Systematic Investment Plan (SIP),

withdrawing through SWP and switching schemes (within the same MF).

• There is No BROKERAGE charged and only an entry and exit load is charged (by the

AMC) whenever one invests, redeems and switches.

• Normally to invest in an IPO, you would have to fill up a Form, write the Cheque, submit

the Form

• Through Religare just

– LOGIN

– SELECT IPO

– ENTER AMOUNT

– Subscribe & its Done

– No Filling of Forms

• No writing Cheques

• No standing in QUEUE

• Insurance is defined as “ A contract between two parties whereby one party called insurer

undertakes to pay the other party called insured a fixed amount of money on the

happening of a certain event, in exchange for a fixed sum called premium.”

• There are different kinds of Insurance Products available such as Health Insurance ,

Motor Insurance, Home Insurance, Overseas Travel Insurance, Rishtey – Parent’s Health

Insurance, Student Travel Insurance etc.

• For Example if a person buys a Life Insurance Policy by paying a premium to the

Insurance company , the family members of insured person receive a fixed compensation

in case of any unfortunate event like death.

• Advantages : Protection, Tax saving, Liquidity etc

.

Trading

The trading on stock exchanges in India used to take place through open outcry

without use of information technology for immediate matching or recording of

trades. This was time consuming and inefficient. This imposed limits on trading

volumes and efficiency. In order to provide efficiency, liquidity and transparency,

NSE introduced a nation-wide on-line fully-automated screen based trading system

(SBTS) where a member can punch into the computer quantities of securities and

the prices at which he likes to transact and the transaction is executed as soon as it

finds a matching sale or buy order from a counter party. SBTS electronically

matches orders on a strict price/time priority and hence cuts down on time, cost

and risk of error, as well as on fraud resulting in improved operational efficiency.

It allows faster incorporation of price sensitive information into prevailing prices,

. It enables market participants, irrespective of their geographical locations, to trade with one

another simultaneously, improving the depth and liquidity of the market. It provides full

anonymity by accepting orders, big or small, from members without revealing their

identity, thus providing equal access to everybody

Outstanding Orders

The purpose of Outstanding Orders (OO) is to enable the user to view the

outstanding orders for a security. An outstanding order is an order that has been

entered by the user, but which has not yet been completely traded or cancelled. The

user is permitted to see his own orders.

Special Features of Outstanding Orders:

• The user can modify orders from the outstanding orders screen.

• The user can cancel orders from the outstanding orders screen.

• The user can view status of a particular order from the outstanding orders screen.

Activity Log

The Activity Log (AL) shows all the activities that have been performed on any

order belonging to that user. These activities include order

modification/cancellation, partial/full trade, trade modification/cancellation. It

displays information of only those orders in which some activity has taken place. It

does not display those orders on which no activity has taken place.

The following activities are displayed:

B For buy orders, this indicates a match.

S For sell orders, this indicates a match.

OC This indicates an order was cancelled.

OM This indicates an order was modified.

TC For both buy and sell orders this indicates that a trade involving this order was

cancelled.

TM For both buy and sell orders this indicates that a trade involving this order was

modified.

Order Status

The purpose of the Order Status (OS) is to look into the status of one of dealer’s

own specific orders. The screen provides the current status of orders and other

order details. The order status screen is not dynamically updated. In case the order

is traded, the trade details are also displayed. In case of multiple trades the display is scrolled.

Equity Broking
Key Facts Rising Equity Broking Turnover*
• Over 190,000 Retail Equity clients, 60000
with growth rates over 200%
50000
• Current market share is at 4.5% -
5.5% 40000

• Target increased presence in this 30000
segment both in India and abroad
20000
• Doubling manpower by March
2008 10000

0
2003-04 2004-05 2005-06 2006-07

Rising Client Base Key Facts
160,000

140,000 • Presence of 300 Branches all India
120,000 • Internationally, established office in
100,000 London, with the target of opening
80,000 7 offices abroad by March 2008
60,000 • Targeting growth of 25% in
40,000 brokerage by March 2008
20,000

0
2004-05 2005-06 2006-07

* Figures in $ mn

Online Investment
Key Facts Rising Number of Online Clients
• Official Launch of E-broking in August Mar-07

2006 Feb-07

• Aggressive growth has been observed Jan-07

in the client base for online trading Dec-06

• Targeting 300,000 online clients by the Nov-06
end of this financial year Oct-06

Sep-06

Aug-06
Rising Turnover**
0 5000 10000 15000 20000 25000 30000 35000
100

90

80
Key Facts
70

60

50
• Acquired market share of 8% in internet
40
trading volumes *
30
• Recently launched a revamped, unique
20
360 degrees customer centric online
10
trading portal
0 • To increase team strength to 3000
Aug- Sep- Oct- Nov- Dec- Jan-07 Feb- M ar-
06 06 06 06 06 07 07
employees purely for internet trading

* Of total internet trading volume of NSE As per the last published figures
** Figures in $ mn

Personal Credit
Personal Loans - Key Facts Personal Loans - Scheme Wise Size**
4.0
• Official Launch of Personal Loans in
3.5
August 2006
3.0
• Total number clients till date are nearly
2.5
1500
2.0
• Targeting book size $110 mn by March 1.5
2008 1.0

0.5

0.0
business+ Celebration +

LAS - Current and Projected Book Size**
Loans Against Shares - Key Facts
350

300
• Current Book Size $144 mn, projected
250 to increase to $ 284 mn by March
200 2008
150 • Presence of 300 Branches all India, to
double by March 2008
100
• Total number clients till date are nearly
50
15,000
0
2006-07 2007-08*

*Projected Figures
**Figures in $ mn

Personal Financial Services
Key Facts Rising MF Collections for both Debt & Equity*
• PFS caters to the financial needs of 300
individuals by advising them on 250
various financial plans 200

• Financial planning for retail investment 150

is not widespread in India 100

50
• PFS was started to target the rapidly 0
expanding middle net worth individuals Apr- May- Jun- Jul-06 Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar-
06 06 06 06 06 06 06 06 07 07 07
(MNI’s) in India

• Rapid rollout of PFS Products offering,
such as mutual funds, life and general Product –Wise Clients
insurance, fixed income, small savings
instruments, capital bonds and equity 30000
IPOs 25000
20000
• Expert group of Religare’s PFS 15000
advisors provide high quality 10000
customized solutions 5000
0
• Dedicated Team of more than 200 Insurance IPO MF's
advisors, to be expanded to 800 by
March 2008

* Figures in $ mn

Investment Banking
Key Facts

• Investment Banking Division covers three
key areas
– Merchant Banking
– Transactions Advisory Services
– Corporate Finance

• License for Merchant Banking was
received on 19th December, 2006

• Handling a wide plethora of over 40
transactions in India

• The investment banking branch of
Religare since its inception six months
ago, has raised over $185 mn with an
anticipated growth of over 100%

• Of $185 mn, $142 mn was raised through
debt

International Equity
International Equity Portfolio Performance

% Return
Dow Jones Industrial Average 14.34%
NASDAQ Composite Index 18.32%
Religare International Equity Portfolio 41.09%
Currency Gains -1.57%
Total Return 39.52%

Key Facts

• Religare International ‘Advisory Fund Management Service’ provides advisory services to clients
who wish to profit from trading in International (currently limited to US) financial instruments
• Instruments available are US equities, Mutual funds and Debt, with funds being managed by the
Fund Management Team based out of Delhi.
• Religare International Equity portfolio has shown much higher returns than DJIA and Nasdaq
Composite Index
• International Equity Partner - Wall street*E

Portfolio Management Services
Key Facts Scheme-Wise AUM
• PMS provides customized portfolio
services with a high level of client
interaction
• Rigorous valuation disciplines have Caterpillar
Elephant
been put in place to minimize risk Panther

• Extremely experienced and well Tortoise

networked team of individuals
• Product offerings entail four key
schemes – Panther, Tortoise, Elephant
and Caterpillar
• Current Assets under Advice are $100
mn Key Facts

Scheme-Wise Client Distribution • Panther: Aggressive across sectors,
High Risk- High Return Profile
• Tortoise: Gradual Growth, with a
cautious approach; Medium Risk and
Caterpillar Medium Return
Elephant • Elephant: Steady return over a long
Panther time period; Low Risk Low Return
Tortoise • Caterpillar: Capital appreciation over a
long period of time; High Risk- High
Return Profile

Priority Client Group
Key Facts Revenue Distribution
South North
• Priority Client Group (PCG) caters to high net
worth individuals who actively invest in equity East

markets
• Clients have exclusive access to equity
research reports fundamental & technical
covering a wide spectrum of companies
across sectors West

• Dedicated team of 20 research analysts, 10
dealers and 10 relationship managers
• State-of-the-art infrastructure and superior PCG Product Offerings
execution systems to ensure faster execution • Direct Equity
of trades •Fundamental research reports
•Technical research reports
• Nearly 700 clients
• NRI Direct Equity’s and Derivative’s
• Turnover for PCG is over $3.4 bn • Structured Products (Derivatives)
• Currently operational in 5 locations with the •Index Arbitrage

existing retail setup •Volatility Trading
• Directional & Non Directional Trading
•Structure Products .

ICICI DIRECT.COM RELIGAREONLINE.COM
ACCOUNT OPENING Rs :- 299 with

ACCOUNT OPENING Rs:- 1200* commodity*
* with commodity and RS:- 750 without

commodity * will start shortly.
0.05% BROKERAGE SCHEME-on

BROKERAGE :- .75% Intraday
effective yield :- .90% 0.50% ON Delivery
ANNUAL AMC IS RS:- 580/- PER ANNUAL NO AMC
NO DEALER SUPPORT DEALER SUPPORT
PROVIDE CALL CENTRE NUMBER ONLY CALL CENTRE & DIRECT LINES ALSO
4-20 TIME EXPOSURE 6-20 TIMES EXPOSURE
NO TRADE REWARDS POINTS TRADE REWARDS POINTS
NO LIMIT AGAINST THE DEMAT LIMIT AGAINST THE DEMAT

HOLDING HOLDING

Account Opening: Rs 750

Schemes: For short periods Rs 750 is refundable

against brokerage generated in a qtr. These

schemes are introduced 3-4 times a year.

Demat: NIL, 1st year charges included in

Account Opening Plus a facility to open

additional 4 DP’s without 1st yr AMC.

Initial Margin: Nil

Brokerage: All brokerage is inclusive of stamp

duty and exclusive of other taxes.

Slab wise brokerage ranges from 0.75% to

0.25% depending on volume.

SHAREKHAN RELIGAREONLINE.COM

Account Opening Rs :- 299 with

Account Opening Rs:- 1000* commodity*

* Refundable against brokerga in month +1 * will start shortly.

0.10% BROKERAGE SCHEME-on Intraday Intraday
0.50% ON Delivery 0.50% ON Delivery
NO INTEREST ON THE AMOUNT INTEREST ON THE MARGIN AMOUNT
3% per annual 3% per annual yield is high
Exposure- 4 times Exposure- 6-20 times
Account access charges-500 p.m. adjust against

brokerage NO ACC .
Classic account- Rs.750/- Classic account- Rs.1175/-
NO LIVE STREAMING QUOTES LIVE STREAMING QUOTES

•Account Opening : Rs 1000 ( Refundable against brokerage in Month + 1)

•Demat 1st Yr : Incl in Account Opening

•Initial Margin : NIL

•Min Margin Retainable : NIL

•Brokerage :

Trading 0.10% each side + All Taxes

Delivery 0.50% each side + All Taxes

( Negotiable based on volume )

•Account Access Charges

Monthly Rs 500, adjustable qtrly against brokerage of Rs 9000/- for qtr

No access charges for gold customers ( Above 1 lac brokerage p.a)

Classic account

Account opening : 750 (lifetime)

Demat 1st year: free a/c opening

Intial margin : NIL

Minimum margin :NIL

Brokerage :

Trading 0.10% each side + All Taxes

Delivery 0.50% each side + All Taxes

( Negotiable based on volume )

Problems Of Sharekhan

Sharekhan interface is quite complicated

Sharekhan is good except customer care.

Sharekhan exposure is 4 times and Religare securities is the leader

here with 20 times.

Basic features are missing from company’s websities.

No written confirmation of buying and selling of shares.

Sharekhan still does not have full support for BSE trades and

May show your orders pendingand will not execute the orders.

High brokerage , high AMC (annula maintence charges) and account opening charges.

High amount of margin money required to put in dmat account

5PAISA .COM RELIGAREONLINE.COM


Account Opening Rs:- 500 commodity*
* will start shortly.

Initial Margine- Rs.-2500/- NoInitial Margine is required.
Account access charges-800 p.m. adjust against

brokerage and Yearly Acc is Rs. 8000/- NO ACC..
Minimum Margine-Rs.1000/- either in cash or in No Minimum Margine is required.

securities

Account Opening: Rs 500

•Demat 1st Yr: Rs 250

•Initial Margin: Rs 2500(Compulsory)

•Min Margin Retainable: Rs 1000

• Brokerage:

Trading 0.10% each side + ST

Delivery 0.50% each side + ST

PRICING FOR HNI CLIENTS

Trader Terminal

•Account Opening: Rs 500

•Demat 1st Yr: Rs 250

•Initial Margin: Rs 5000(Compulsory)

•Min Margin Retainable: Rs 1000

•Brokerage:

Trading 0.10% each side + ST

Delivery 0.50% each side + ST

(Negotiable to 0.05% each side & 0.25%

•Account Access Charges

Monthly Rs 800, adjustable against Brokerage

Yearly Rs 8000, adjustable against brokerage

Problems Of 5 Paisa

•Downtime

Recent past 5 paisa Trader Terminal (T.T) is experiencing high frequency downtime between

3 – 3:30p.m due to server load (as their T.T is feature heavy compared to Speedtrade charting)

•Manual Accounting

The 5 paisa accounting system is manual, Online fund transfer through bank is not credited

instantly. Limit is provided EOD for shares sold from DP, or call Similarly limit released for

shares sold under BTST is manual Delay in receiving pay-out of clear funds from trading to

Bank Account

•Min Account Balance

Concept of Min Rs1,000 is to be maintained in form of cash / securities to keep account active.

This can be withdrawn only on closure of account

KOTAKSTREET.COM RELIGAREONLINE.COM


Account Opening Rs:- 500 commodity*
Initial Margine- Rs.-5000/- NoInitial Margine is required.

Minimum Margine-Rs.1000/- either in cash or in

securities No Minimum Margine is required.
ANNUAL AMC IS RS:- 22.50/- PER

ANNUAL NO AMC

• Account Opening: Rs 500

• Demat: Rs 22.5 p.m

• Initial Margin: Rs 5000(Compulsory)

• Min Margin Retainable: Rs 1000

• Brokerage Slab wise: Higher the volume, lower the brokerage. Even older customers (on

0.25% & 0.40%) have been moved to the slab wise structure.

Problems of Kotakstreet

• Rigid Account Opening Terms

• No Flexibility of A/c opening charges (Rs 500) + Compulsory margin Rs 5000/- Account

opening free with Rs 10,000 Margin OR Competitor Contract Note.

• No Flexibility in Leverage – Dependent on Type of Account ( 4 to 6 times only) No

flexibility in Brokerage, driven by slab structure.

• No Customization of commercial Terms.

• Restricted Access to Terminal like product

• KEAT Desktop restricted distribution on payment of Rs 500, Non refundable

Many Other Charges:

• Rs 22.5 p.m towards DP AMC charges

• DP incoming charges extra, 0.02%

• Rs 1,000 as retainable Margin to keep account active

• Rs 25 per call after 20 calls for the month

INDIABULLS RELIGAREONLINE.COM

Account Opening Rs:- 250/- and Rs.200 for Account Opening Rs :- 299 with

Dmat commodity*
ANNUAL AMC - NO NO AMC

NO INTEREST ON THE AMOUNT INTEREST ON THE MARGIN AMOUNT
3% per annual 3% per annual yield is high


•Demat: Rs 200 if POA is signed, No AMC for this DP

•Initial Margin: NIL

•Brokerage: Negotiable

Power IndiaBulls


•Demat: Rs 200 if POA is signed, No AMC for this DP

•Initial Margin: NIL

•Brokerage: Negotiable

Problems Of IndiaBulls

POA for Clients DMAT

Charges are levied to move shares from IB pool Account to client DP account All shares held by

client trading with IB are moved to IB Pool Account and the same is shown as a reflection in

client DP account.

Paid Research Services

Access to a research even for an IB trading account holder is charged a min of Rs 500 a month.

Margin funding hoax

The interest on funding starts on leveraged delivery trades from T+1 day itself @21% p.a , on a

daily basis.

The role of Relationship Manager:

Each RM is looked upon as a revenue generator and he gets a % on business generated from

client. This can lead to over leveraged (Interest) & high frequency (Brokerage) trading, which

may not be in the best interest of the client

• No requirement of broker for trading activities.

• Order is placed online, so no way a wrong order is placed.

• Order can’t be late, because without time lag order is placed.

• All information regarding investment is always available in your own a/c.

• Completely paperless, so contract notes or cheques are not required

• Fully automated processes, so no dependency on any one.

• Trade on the NSE, BSE and NSE F&O, IPOs, MF and Commodities.

• Extra trading exposure on stock holdings.

• Trading support available without any extra charge.

Some of our interesting features and benefits are as follows:

Unique Features Benefits

Trade Rewards is a unique offering from Religare that gives you dual

Trade Rewards benefits of hassle free investment experience online and an opportunity to

earn while you invest with us.

Exposure up to 20 Allowing you the freedom to trade without hassles throughout the day

times on your without having to worry about your cash margin. You can get exposure

margin* (on cash segment) as high as 20 times for intraday trades.

Even while you are waiting to make your next trade or online investment,
Interest on cash
your unutilized cash does not lie idle with us. You earn interest on your
margin
unutilized cash margin.

• At the time of account opening its margin money of Rs. 5000 is one of the factor which

sometime discourages customers to go for it while its competitors does not require any

margin money at the time of opening demat account

• Sometimes its terminal works with low frequency, so that customers have to face many

problems specially in intraday .

• Since it’s a brand, yet it faces number of difficulties to capture the customers of

INDIABULLS, RELIANCE and ICICI...

• The information, estimates and opinions contained in this report are obtained from

sources considered to be reliable. However, I am giving qualification for this

report.

• They did not provide full satisfaction about the queries.

• Proper data is not available on the web-site.

• The employees should not damage the goodwill of the religare securities ltd only to get

few profits.

• There should be a proper coordination between the employees and use proper

communication.

• The company should pay more attention in satisfying the clients, and retaining them for a

longer period.

• The company should pay more emphasis on its customer support services. A regular

feedback should be taken by the clients regarding their problems.

• The company should go for some more advertising and promotional activities to gain

more share of the market.

• www.religareonline.com

• NSE Newsletters

• From Google

• From journals (like-business-today and money-outlook)

• www.nseindia.com

List of Abbreviations

ABC Additional Base Capital

BMC Base Minimum Capital

BSE Bombay Stock Exchange

CDSL Central Depositories Services Ltd.

CM Capital Market

Co. Company

DCA Department of Company Affairs

DEA Department of Economic Affairs

DP Depository Participant

DPG Dominant Promoter Group

DQ Disclosed Quantity

FI Financial Institution

FII Foreign Institutional Investors

F&O Futures and Options

IOC Immediate or Cancel

IPF Investor Protection Fund

LTP Last Trade Price

MBP Market By Price

MTM Mark To Market

NSE National Stock Exchange

NSCCL National Securities Clearing Corporation Limited

NSDL National Securities Depository Ltd.

NCFM NSE's Certification in Financial Markets

SEBI Securities and Exchange Board of India

ULIPs Mutual Funds
Determined by the

investor and can be Minimum investment amounts are

Investment amounts modified as well determined by the fund house

No upper limits,

expenses determined by Upper limits for expenses chargeable to

Expenses the insurance company investors have been set by the regulator

Portfolio disclosure Not mandatory* Quarterly disclosures are mandatory
Modifying asset Generally permitted for Entry/exit loads have to be borne by the

allocation free or at a nominal cost investor
Section 80C benefits are

available on all ULIP Section 80C benefits are available only

Tax benefits investments on investments in tax-saving funds

ULIPs vs Mutual Funds: Who's better?

Unit Linked Insurance Policies (ULIPs) as an investment avenue are closest to mutual funds in

terms of their structure and functioning. As is the case with mutual funds, investors in ULIPs are

allotted units by the insurance company and a net asset value (NAV) is declared for the same on

a daily basis.

Similarly ULIP investors have the option of investing across various schemes similar to the ones

found in the mutual funds domain, i.e. diversified equity funds, balanced funds and debt funds to

name a few. Generally speaking, ULIPs can be termed as mutual fund schemes with an insurance

component.

However it should not be construed that barring the insurance element there is nothing

differentiating mutual funds from ULIPs.

How ULIPs can make you RICH!

1-Mode of investment/ investment amounts

Mutual fund investors have the option of either making lump sum investments or investing using

the systematic investment plan (SIP) route which entails commitments over longer time horizons.

The minimum investment amounts are laid out by the fund house.

ULIP investors also have the choice of investing in a lump sum (single premium) or using the

conventional route, i.e. making premium payments on an annual, half-yearly, quarterly or

monthly basis. In ULIPs, determining the premium paid is often the starting point for the

investment activity.

This is in stark contrast to conventional insurance plans where the sum assured is the starting

point and premiums to be paid are determined thereafter.

2. Expenses

In mutual fund investments, expenses charged for various activities like fund management, sales

and marketing, administration among others are subject to pre-determined upper limits as

prescribed by the Securities and Exchange Board of India.

For example equity-oriented funds can charge their investors a maximum of 2.5% per annum on

a recurring basis for all their expenses; any expense above the prescribed limit is borne by the

fund house and not the investors.

Similarly funds also charge their investors entry and exit loads (in most cases, either is

applicable). Entry loads are charged at the timing of making an investment while the exit load is

charged at the time of sale.

. Tax benefits

ULIP investments qualify for deductions under Section 80C of the Income Tax Act. This holds

good, irrespective of the nature of the plan chosen by the investor. On the other hand in the

mutual funds domain, only investments in tax-saving funds (also referred to as equity-linked

savings schemes) are eligible for Section 80C benefits.

Maturity proceeds from ULIPs are tax free. In case of equity-oriented funds (for example

diversified equity funds, balanced funds), if the investments are held for a period over 12 months,

the gains are tax free; conversely investments sold within a 12-month period attract short-term

capital gains tax @ 10%

The Systematic Investment Plan (SIP) is a simple and time honored investment strategy for

accumulation of wealth in a disciplined manner over long term period. The plan aims at a

better future for its investors as an SIP investor gets good rate of returns compared to a one time

investor.

What is Systematic Investment Plan

• A specific amount should be invested for a continuous period at regular intervals under

this plan.

• SIP is similar to a regular saving scheme like a recurring deposit. It is a method of

investing a fixed sum regularly in a mutual fund.

• SIP allows the investor to buy units on a given date every month. The investor decides

the amount and also the mutual fund scheme.

• While the investor's investment remains the same, more number of units can be bought in

a declining market and less number of units in a rising market.

ELSS funds have a lock-in period of three years. This could be restricting, but look at the other

side of the picture -- the lock-in period prevents unnecessary withdrawals and helps your money

grow over a period of time.

If you are wondering why a three-year lock-in period is necessary, it is because you need to take

a long-term view when you invest in equity. The real potential of equities starts to show only

after a few years. This allows you to ignore the short-term slumps and stay invested for the long

haul.

How to compare mutual funds

The tax benefit

Investments in ELSSs fall under Section 80C.

The limit under this section is Rs 100,000.

This is irrespective of how much you earn and under which tax bracket you fall.

Also, there are no sub-limits under this overall Rs 100,000 amount.

So, if you choose, you can invest the entire amount in ELSS or infrastructure bonds. How you

utilise the limit of Rs 100,000 is entirely up to you.

• What are the criteria for selection and review of scrips for the SENSEX?

A .QuantitativeCriteria:

1. Market Capitalization:

The scrip should figure in the top 100 companies listed by market capitalization. Also

market capitalization of each scrip should be more than 0.5 % of the total market

capitalization of the Index i.e. the minimum weight should be 0.5 %. Since the SENSEX

is a market capitalization weighted index, this is one of the primary criteria for scrip

selection. (Market Capitalization would be averaged for last six months)

2. Liquidity:

(i) Trading Frequency: The scrip should have been traded on each and every trading day

for the last one year. Exceptions can be made for extreme reasons like scrip suspension

etc. (ii) Number of Trades: Number of Trades: The scrip should be among the top 150

companies listed by average number of trades per day for the last one year. (iii) Value of

Shares Traded: Value of Shares Traded: The scrip should be among the top 150

companies listed by average value of shares traded per day for the last one year.

3. Continuity:

Whenever the composition of the index is changed, the continuity of historical series of

index values is re-established by correlating the value of the revised index to the old

index (index before revision). The back calculation over the last one-year period is

carried out and correlation of the revised index to the old index should not be less than

0.98. This ensures that the historical continuity of the index is maintained.

4. Industry Representation:

Scrip selection would take into account a balanced representation of the listed companies

in the universe of BSE. The index companies should be leaders in their industry group.

B.Qualitative Criteria:

Track Record:

In the opinion of the Index Committee, the company should have an acceptable track

record.

• What is the beta of SENSEX scrips?

Beta measures the sensitivity of a scrip movement relative to movement in the benchmark

index i.e. SENSEX. A Beta of one means that for every change of 1% in index, the scrip

moves by 1%. Statistically Beta is defined as: Covariance (SENSEX, Stock )/

Variance(SENSEX)

Note: Covariance and variance are calculated from the Daily Returns data of the

SENSEX and SENSEX scrips.

• How is SENSEX calculated?

SENSEX is calculated using a "Market Capitalization-Weighted" methodology. As per

this methodology, the level of index at any point of time reflects the total market value of

30 component stocks relative to a base period. (The market capitalization of a company is

determined by multiplying the price of its stock by the number of shares issued by the

company)

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