Abrar Project

7/26/2019 Abrar Project

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SUMMER TRAINING PROJECT REPORT

ON

Bona-fide Certificate of Dean -School of Management

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DECLARATION

I hereby declare that this project work done on "CUSTOMER SATISACTION O

RELIANCE SECURIT!" is my work, carried out under the guidance of my faculty guide

The results reported in this study are genuine, original and the script is written by me.

#i$e% &rata' Singh

IIIrdSeme(ter

Roll No- ))*+,.))/

.

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AC0NO1LED2EMENT

This project bears the imprint of many people who have assisted me in the

successful completion of this report. I gratefully acknowledge the contribution of all

the people who took active part and provided valuable support to me during the

course of this project.

To begin with, I would like to offer my sincere thanks to Reliance securities Ltd for

giving me an opportunity to do my summer internship with the esteemed

organi!ation.

"ith due reverence, I acknowledge the valuable support of 3S4dhan(h4 04mar

&arida5 Branch 6ead Reliance Sec4ritie( Ltd Bh47ane(h8ar95 for giving me

the opportunity to do my summer internship under his # her guidance. $"ithout

his#her guidance, support and valuable suggestions during the research, the project

would not have been accomplished.

%y heartfelt gratitude also goes to the entire 3Reliance (ec4ritie( Staff ('eciall:

Nihar S8ain and S4re(h (ir for their co&operation and willingness to answer all my

'ueries, and provide valuable assistance.

I also sincerely thank 3Sandee' %4mar mohant:9, my faculty mentor at (I%T)*+,

who provided valuable suggestions, shared his#her rich corporate eperience, and

helped me script the eact re'uisites.

Last, but not least, I would like to thank all -ealers#*ustomers for sharing their

eperience and giving their valuable time to me during the course of my project.

brarul +a'ue/0-% 1(atch2Roll 3o. 45-%6

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(I%T)*+, (hubaneswar

E;ECUTI#E SUMMAR!

The Indian capital markets have seen a lot of economic swing since last decade but still

it has been flourishing with rapid transformations. Reforms are continuing and are

bringing a lot of change in structure, process and governance of capital market. This is

helping Indian capital market to gain an image of mature market place in the capital

markets of the world. The working mechanism are now more fleible and transparent.

The stock echanges has been corporati!ed too. 7ther than this new instruments like

inde future, inde options, derivatives etc. has

been introduced.

7ut of the major players showing their presence in the financial markets, Reliance

8ecurity is the one. Reliance 8ecurity is promoted by Reliance *apital9 one of India:s

leading and fastest growing private sector financial services companies, ranking among

the top ; private sector financial services and banking companies, in terms of net worth.

-uring past few years, it has picked up a considerable market share in the sector of

financial services.

It is a one&stop&shop, providing end&to&end financial solutions 1including mobile and

web&based services2. It has the largest non&banking distribution channel with over

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-uring the internship, a research has been carried out on the on the topic study of

investor 8atisfaction at Reliance 8ecurity. The objectives of the research were to

create awareness about various products and services of the Reliance 8ecurity and to

know about the investor 8atisfaction and their preferences towards investment

decisions and considerations. 7ther than this, the research included the study of

position of Reliance 8ecurity in the market and its comparative position with other

players.

-escriptive research was used in the whole project. The data was collected through

meeting investors and potential investors in various areas of Lucknow and

'uestionnaires were filled on the basis of their responses. The collected data was

analy!ed using percentage method.

?arious findings were derived which revealed perception and 8atisfaction of investors

and potential investors toward financial market. 7ther than this, the attitude of investors

were also observed towards Reliance 8ecurity. (ased upon the findings, various

suggestion were given with a view to improve the /osition of Reliance 8ecurity in the

market.

s a result of research, it was concluded that Reliance 8ecurity has a good brand

image but it still has to work upon in various areas to ecel in the financial sector.

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T ABLE OF CONTENT

Certificate from the Organization

Bona-fide Certificate of Dean -School of Management

Declaration

Acknowledgement

!ec"ti#e S"mmar$Chapters Page No.

Part I

1 %ntrod"ction &

2 Com'an$ 'rofile 3&

a Ba(ic Str"ct"re of )eliance ADA *ro"' 44

+ Organizational Str"ct"re 45

c S,O Anal$(i( on Cement %nd"(tr$ .5

Part II

3 )e(earch Methodolog$ .&

4 O+/ecti#e( of the (t"d$ 02

Part III

1 Data Anal$(i( %nter'retation( 04

2 inding( &&

3 S"gge(tion()ecommendation( 11

4 Concl"(ion 13


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5 Bi+liogra'h$ 15

Anne!"re 1

. 6"e(tionnaire 112

INTRODUCTION

INTRODUCTION:

Mutual fun:!

A M"t"al "nd i( a 'ool of mone$ collected from in#e(tor( i( in#e(ted according to

certain in#e(tment o+/ecti#e(7 A M"t"al "nd i( created when in#e(tor( '"t their mone$ together7

%t i( therefore a 'ool of the in#e(tor8( f"nd(7 he mo(t im'ortant characteri(tic of a M"t"al "nd

i( that the contri+"tor( the +eneficiarie( of the f"nd are the (ame cla(( of 'eo'le9 namel$ the

in#e(tor(7 he term M"t"al mean( that in#e(tor8( contri+"ted to the 'ool al(o +enefit from the

'ool7 here are no other claimant( to the f"nd(7 he 'ool of f"nd( held m"t"all$ +$ in#e(tor( i(

the M"t"al "nd7

A M"t"al "nd8( +"(ine(( i( to in#e(t the f"nd( th"( collected9 according to the wi(he( of

the in#e(tor8( who create the 'ool7 %n man$ market( the wi(he( are artic"lated a( :%n#e(tment

Mandate(;


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17 A M"t"al "nd act"all$ +elong( to the in#e(tor( who ha#e 'ooled their f"nd(7 he owner(hi'

of the M"t"al "nd i( in the hand( of the in#e(tor(7

27 A M"t"al "nd i( managed +$ in#e(tment 'rofe((ional( other (er#ice 'ro#ider(9 who earn

a fee to their (er#ice( from the f"nd7

37 he 'ool of f"nd( i( in#e(ted in a 'ortfolio of marketa+le in#e(tment(7 he #al"e of the

'ortfolio i( "'dated e#er$ da$7

47 he in#e(tor8( (hare in the f"nd i( denominated +$ :


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INDUSTR! &ROILE

)) 2eneral introd4ction a7o4t financial (ector

The financial sector is in a process of rapid transformation. Reforms are continuing as

part of the overall structural reforms aimed at improving the productivity and efficiency

of the economy. The role of an integrated financial infrastructure is to stimulate and

sustain economic growth.

The @8A =B billion Indian financial sector has grown at around 45 per cent and has

displayed stability for the last several years, even when other markets in the sian

region were facing a crisis. This stability was ensured through the resilience that has

been built into the system over time. The financial sector has kept pace with the growing

needs of corporate and other borrowers. (anks, capital market participants and insurers

have developed a wide range of products and services to suit varied customer

re'uirements. The Reserve (ank of India 1R(I2 has successfully introduced a regime

where interest rates are more in line with market forces.

Cinancial institutions have combated the reduction in interest rates and pressure on

their margins by constantly innovating and targeting attractive consumer segments.

(anks and trade financiers have also played an important role in promoting foreign

trade of the country.

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). Ca'ital Mar%et

The Indian capital markets have witnessed a transformation over the last decade. India

is now placed among the mature markets of the world. Dey progressive initiatives in

recent years includeE

F The depository and share dematerialisation systems that have enhanced the efficiency

o the transaction cycle

F Replacing the fleible, but often eploited, forward trading mechanism with rolling

settlement, to bring about transparency

F The infotech&driven 3ational 8tock )change 138)2 with a national presence 1for the

benefit of investors across locations2 and other initiatives to enhance the 'uality of

financial disclosures.

F *orporati!ation of stock echanges.

F The 8ecurities and )change (oard of India 18)(I2 has effectively been functioning as

an independent regulator with statutory powers.

F Indian capital markets have rewarded Coreign Institutional Investors 1CIIs2 with

attractive valuations and increasing returns.

F The %umbai 8tock )change continues to be the premier echange in the country

with an increase in market capitalisation from @8A G< billion in 4HH


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billion in 4HHH&=


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*apital market reforms in India and the launch of the 8ecurities and )change (oard of

India 18)(I2 accelerated the integration of the second Indian stock echange called the

3ational 8tock )change 138)2 in 4HH=. fter a few years of operations, the 38) has

become the largest stock echange in India.

Three segments of the 38) trading platform were established one after another. The

"holesale -ebt %arket 1"-%2 commenced operations in une 4HHG and the *apital

%arket 1*%2 segment was opened at the end of 4HHG. Cinally, the Cutures and 7ptions

segment began operating in =


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), Str4ct4re5 &roce((e( and 2o$ernance of the ind4(tr:

@nder this, various processes involved in the industry will be discussed. 7ther than this,

the bodies governing the industry will also be brief upon and and an endeavour will be

made to understand the whole structure of the industry.

),) Demateriali=ed Trading

Indian investor community has undergone see changes in the past few years. India now

has a very large investor population and ever increasing volumes of trades. +owever,

this continuous growth in activities has also increased problems associated with stock

trading. %ost of these problems arise due to the intrinsic nature of paper based trading

and settlement, like theft or loss of share certificates. This system re'uires handling of

huge volumes of paper leading to increased costs and inefficiencies. Risk eposure of

the investor due to this trading in paper.

8ome of these risks areE

4. -elay in transfer of shares.

=. /ossibility of forgery on various documents leading to bad deliveries, legal

disputes etc.

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;. /ossibility of theft of share certificates in the market.

G. %ultiplication or loss of share certificates in transit.

5. /revalence of fake certificates in the market.

The physical form of holding and trading in securities also acts as a bottleneck for

broking community in capital market operations.

The introduction of 38) and (7LT has increased the reach of capital market manifolds.

The increase in number of investors participating in the capital market has increased the

possibility of being hit by a bad delivery. The cost and time spent by the brokers for

rectification of these bad deliveries tends to be higher with the geographical spread of

the clients. The increase in trade volumes lead to eponential rise in the back office

operations thus limiting the growth potential of the broking members. The inconvenience

faced by investors 1in areas that are far flung and away from the main metros2 in

settlement of trade also limits the opportunity for such investors, especially in

participating in auction trading. This has made the investors as well as broker wary of

Indian capital market. In this scenario, demateriali!ed trading is certainly a welcome

move.

),. 1hat i( Demateriali=ation>

-emateriali!ation or -emat is a process whereby your securities like shares,

debentures etc, are converted into electronic data and stored in computers by a

-epository. 8ecurities registered in your name are surrendered to depository participant

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1-/2 and these are sent to the respective companies who will cancel them after

-emateriali!ation and credit your depository account with the -/.

The securities on -emateriali!ation appear as balances in your depository account.

These balances are transferable like physical shares. If at a later date, you wish to have

these -emat securities converted back into paper certificates9 the -epository helps

you to do this.

-emateriali!ation is the process of converting the securities held in physical form

1certificates2 to an e'uivalent number of securities in electronic form and crediting the

same to the investors -emat account. -emateriali!ed securities do not have any

certificate numbers or distinctive numbers and are dealt only in 'uantity i.e.9 the

securities are fungible.

-emateriali!ation of your holdings is not mandatory. Nou can hold your secure -emat

form or in physical form. Nou can also keep part of your holdings 1in the same script2 in

-emat form K part in physical form. +owever, securities specified by 8)(I can be

delivered only in -emat form in the stock echanges connected to 38-L and # or *-8L.

The &roce((

4. 8urrendering of certificate to -epository /articipants for demateriali!ation.

=. 38-L is informed by the -/ through electronic connectivity.

;. 7riginal share certificates are submitted to the registrar by the -/.

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G. The re'uest for demateriali!ation from 38-L to the register.

5. The registrar credits an e'uivalent number of shares in the account and

informs 38-L.

>. The 38-L updates its own account and the depository participants are

informed.

J. The depository agent credit it in the account of the investor and the same is

informed to the investor.

),* Demateriali=ation

8ometimes the investor may like to convert his electronic holdings back into physical

share certificate. The process undertaken for this purpose is called rematerialisation.

The investor has to make a re'uest to the depository participant for rematerialisation.

The depository participant puts forward the re'uest to 38-L after verifying whether the

investor in having necessary security balances. 38-L in turn will intimate the registrar

who prints the certificate and dispatch the same to the investor. The certificate has a

new range of certificate numbers and new folio number.

The &roce((

4. Investor re'uests the -/ for demateriali!ation.

=. The depository participant informs it to the 38-L.

;. 38-L intimates the Registrar.

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G. The Registrar of the company prints certificates with new number and

informs 38-L.

5. 38-L adjusts its account and passes on the details to the -/.

>. The certificates are dispatched to the investor.

),< 1hat i( De'o(itor:>

-epository functions like a securities bank, where the demateriali!ed physical securities

are traded and held in custody. This facilitates faster, risk free and low cost settlement.

-epository is much like a bank and performs many activities that are similar to a bank.

Collowing table compares the two.

Ban% De'o(itor:

+olds funds in accounts +olds securities in account

Transfers funds between accounts Transfers securities between accounts

Transfers without handling 8ecurity Transfers without handling securities

8afekeeping of 8ecurity 8afekeeping of securities

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),/ NSDL and CDSL

t present there are two depositories in India, 3ational 8ecurities -epository Limited

138-L2 and *entral -epository 8ervices Limited 1*-8L2. 38-L is the first Indian

depository9 it was inaugurated in 3ovember 4HH>. 38-L was set up with an initial

capital of @8A=Bmn, promoted by Industrial -evelopment (ank of India 1I-(I2, @nit

Trust of India 1@TI2 and 3ational 8tock )change of India Ltd. 138)IL2. Later, 8tate

(ank of India 18(I2 also became a shareholder.

The other depository is *entral -epository 8ervices Limited 1*-8L2. It is still in the

process of linking with the stock echanges. It has registered around =< -/s and has

signed up with G< companies. It had received a certificate of commencement of

business from 8)(I on Cebruary B, 4HHH.

These depositories have appointed different -epository /articipants 1-/2 for them. n

investor can open an account with any of the depositories -/. (ut transfers arising out

of trades on the stock echanges can take place only amongst account&holders with

38-Ls -/s. This is because only 38-L is linked to the stock echanges 1nine of them

including the main ones&3ational 8tock )change and (ombay 8tock )change2.

In order to facilitate transfers between investors having accounts in the two eisting

depositories in the country the 8ecurities and )change (oard of India has asked all

stock echanges to link up with the depositories. 8)(I has also directed the companies

registrar and transfer agents to effect change of registered ownership in its books within

two hours of receiving a transfer re'uest from the depositories. 7nce connected to both

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the depositories the stock echanges have also to ensure that inter&depository transfers

take place smoothly. It also involves the two depositories connecting with each other.

The 38-L and *-8L have signed an agreement for inter&depository connectivity.

),/ 1hat i( a D&>

depository is like a bank where securities are held in electronic1demateriali!ed2 form.

In India, there are two -epositories O 3ational securities -epositories Limited 138-L2

and *entral -epository 8ervices Limited 1*8-L2.

@nder the -epositories ct, investors can avail of the services of the -epositories

through -epository /articipants 1-/2 such as I*I*I bank. -/s are like bank branches

wherein shares in physical form need to be deposited for converting the same to

electronic 1-emat2 form.

38-L carries out its activities through various functionaries called business partners

who include -epository /articipants 1-/s2, issuing corporate and their Registrars and

Transfer gents, *learing corporations#*learing +ouses etc. 38-L is electronically

linked to each of these business partners via a satellite link through ?ery 8mall perture

Terminals 1?8Ts2. The entire integrated system 1including the ?8T linkups and the

software at 38-L and each business partners end2 has been named as the 3)8T

P3ational )lectronic 8ettlement K TransferQ system.

The investor interacts with the depository through a depository participant of 38-L.

-/ can be a bank, financial institution, a custodian or a broker.

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ust as one opens a bank account in order to avail of the services of a bank, an investor

opens a depository account with a depository participant in order to avail of depository

facilities.

),, 6o8 to o'en a 7an% acco4nt 8ith a D&

7pening a depository account is as simple as opening a bank account. Nou can open a

depository account with any -/ convenient to you.

To open an account you have toE

4. Cill up the account opening form, which is available with the -/.

=. 8ign the -/&client agreement, which defines the rights and duties of the -/ and

the person wishing to open the account.

;. Receive your client account number 1client I-2.

G. This client I- along with your -/ I- gives you a uni'ue identification in the

-epository system

There is no restriction on the number of depository accounts a person can open.

+owever, if your eisting physical shares are in joint names, you have to open the

account in the same order of names before you submit your share certificates for

demat. sole holder of the share certificates cannot add more names as joint holders at

the time of demateriali!ing his share certificates.

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+owever, if the investor wants to transfer the ownership from his individual name to a

joint name, he should first open an account as the sole holder 1account 2 and

demateriali!e the share certificates. +e should then open another depository account

1account (2 in which he is the first holder and the other person is the second holder and

make an off market transfer of the shares from the account to account (. The investor

will incur a charge on this transaction. lternatively, the certificates can be transferred to

the joint ownership and then sent for -emateriali!ation.

Right now, as per the *ompanies ct, there is no nomination facility for shares 1whether

in the physical or in the electronic form2. The nomination facility for shares can be

availed of only when the relevant provisions in the *ompanies ct are amended. 38-L

captures the details of the nominee when the account is opened so as to offer the

facility as soon as the relevant amendments are effected in the Law.

client can choose to open more than one account with same -/. In addition to this, he

has a choice of opening accounts with more than one -/. +owever a

broker can open just one *learing %ember account per card# stock echange for

clearing purpose, but he can still open multiple beneficiary accounts (eneficiary is the

personal account wherein brokers can keep their personal holdings.

broker has only one *learing %ember&pool&account. 7ne *learing %ember pool

account is opened per card# stock echange to settle trades in the demateriali!ed form.

The *learing *orporation# +ouse just deals with one designated account for pay&in and

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payout and the broker:s clients know to which account they have to deliver and receive

securities from.

clearing member cannot hold his personal holdings in his clearing member account.

broker may deal in the depository system as a clearing member only through a special

account, known as the *learing %ember account. This account can be used only for

clearing purposes and not for holding his own securities in it. s this is a transitory

account, the securities held in this account are not eligible for corporate actions.

Therefore, the broker will have to open a separate beneficiary owner account to hold his

investments.

There is no compulsion for the client to open his account with the same -/ as that of

his broker. )ven if he has an account with another -/, he can carry out normal business

with his broker. There is no loss in operational efficiency. (ut it is possible that opening

account with his broker:s -/ may work out to his advantage, as some -/s may offer

special charge structure if the broker and his clients are dealing through him.

), Trading

Tradingin demateriali!ed securitiesis 'uite similar to trading in physical securities. The

major difference is that at the time of settlement, instead of delivery# receipt of securities

in the physical form, it is done through accounttransfer.

n investorcannot trade in demateriali!ed securities through his -/. Trading at the

stock echanges can be done only through a registered trading member 1broker2 of the

stock echange irrespective of whether the securities are held in physical or

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demateriali!ed form. -/s role will only be to facilitate settlement of trade in the

demateriali!ed form, by transferring securities from and to the account of the investor,

for selling and buying respectively.

Trading in demateriali!ed securities is presently available at 38), (8), *8), -8),L8),

%8), I8) K 7T*)I. These echanges have a segment eclusive for trading in

demateriali!ed securities and a segment where tradescould be settled either in the

physical or in the demateriali!ed form as per the choice of the delivering client. In

unified 1erstwhile & physical2 segment securities can be delivered either in the physical

form or in the demateriali!ed form at the choice of the delivering party.

+owever, securities that have to be mandatorily settled in demat form 1both by

institutional investorsK all category of investors2 cannot be settled in physical form. lso

for securities that have to be mandatorily settled in demat form by all categories of

investors the concept of market lot is eliminated i.e. the tradable lot is one share from

the date they become compulsory.

),? Settlement

The settlement of trades in the stock echanges is undertaken by the clearing

corporation1**2# clearing house 1*+2 of the corresponding stock echanges. "hile the

settlement of demateriali!ed securities is effected through depository, the funds

settlement is effected through the clearing banks. The clearing members directly with

the **# *+ settle the physical securities.

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)clusive -emat segment follows rolling settlement 1T52 cycle and the unified

1erstwhile & physical2 segment follows accountperiod settlement cycle. In case of rolling

settlement cycle, the account period is reduced to one day.

In case of settlement of trades done in eclusive -emat segments, the pay&in and

pay out of funds and securities are effected on the same day afternoon and evening

1same day2 thus reducing the blockage of funds and limiting eposure to the clearing

corporation.

8ettlement of funds is effected through the clearing banks and depository plays no

role in this.

8ettlement of securities is effected through 38-L depository system.

*learing and settlement of the regular market trades is affected through the clearing

members of the clearinghouses of respective stock echanges. ll tradingmembers

of stock echanges are clearing members of clearing houses. In addition, for

settlement of institutional trades, custodians are also allowed to act as clearing

members.

*learing members of clearinghouse, dealing in demateriali!ed securities are

epected to open a clearing account with any -/ for the purpose of settling trades in

demateriali!ed securities. s, in the mied 1unified2 segment, there is a possibility for

all clearing members to receive demateriali!ed securities, they are epected to open

clearing accounts.

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If there is any short delivery at the time of pay&in of securities, these short positions

are auctioned in the -emat segment as done in the @nified 1erstwhile&physical2

segment.

Cor trades eecuted on "ednesday 1T- 42E

Cinal# 3et obligation statement download & Criday 1T=nd working day2

8ettlement day 18- 42 i.e. pay in and pay out of funds and securities & net

"ednesday 1T5th working day2

uction trade day 1T- 42 & net Thursday 1T>th working day2

uction settlement day 18- 42 & %onday 1=nd working day from auction trade

day i.e. TBth working day2

8imilarly, for trades eecuted on Thursday 1T- =2E

Cinal# 3et obligation statement download & %onday 1T=nd working day2

8ettlement day 18- =2 & net Thursday 1T5th working day2

uction trade day 1T- =2 & net Criday 1T>th working day2

uction settlement day 18- =2 & Tuesday 1=nd working day from auction trade

day i.e. TBth working day2

) 0E! &LA!ERS IN T6E INDUSTR!

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There are huge number of players eisting in the market. 8ome of the main players

have been briefed below

)) Religare

+istory of Religare 8ecurities Ltd.Religare 8ecurities Limited, a Ranbay /romoter

0roup *ompany, was founded by late -r. /arvinder 8ingh 1*%- Ranbay Laboratories

Limited2, with the vision of providing integrated financial care driven by the relationship

of trust K confidence.

It is a diversified financial services group with a pan&India presence and presence in

multiple international locations, Religare )nterprises Limited 1SR)LS2 offers a

comprehensive suite of customer&focused financial products and services targeted at

retail investors, high net worth individuals and corporate and institutional clients.

R)L, along with its joint venture partners, offers a range of products and services in

India, including asset management, life insurance, wealth management, e'uity and

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commodity broking, investment banking, lending services, private e'uity and venture

capital.

R)L, through its subsidiaries, has launched India:s first holistic arts initiative & with a

gallery & as well as the first 8)(I approved film fund, which is an initiative towards

innovation and spotting new opportunities for creation and maimi!ation of wealth for

investors.

/resently, the company is headed by %r. 8unil 0odhwani who is *)7 and managing

director of the company. It has its registered and corporate office in 3ew -elhi and it

operates from seven domestic regional offices, G; sub&regional offices, and has a

presence in GHB cities and towns controlling 4,B;J business locations all over India with

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Revenue recorded at Rs. =,BBJ.GH mn, )(I-T at Rs. 4,4BG.4J mn and /rofit after ta

at Rs. ;>.>B mn

). Angel Bro%ing

ngel (roking:s tryst with ecellence in customer relations began in 4HBJ. Today, ngel

has emerged as one of the most respected 8tock&(roking and wealth management

companies in India. "ith its uni'ue retail&focused stock trading business model, it is

committed to providing $Real ?alue for 8ecurity to all its clients.

ngel broking ltd. already has a good presence in India and offers world&class financial

planning and a wide range of wealth management products to mass affluent and

affluent customer segments. ngel (roking limited provides a complete range of

financial products and services that include e'uity broking 1internet based online trading

as well as offline trading2, financial planning, insurance, investment products, e'uity

research, demat account and more.

20


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It is one of the leading and professionally managed stock broking firm involved in 'uality

services and research. The membership of the company with The 8tock )change

%umbai was originally in the name of %ukesh R. 0andhi, which was eventually turned

into a corporate membership in the name of ngel (roking Limited. ngel (roking

Limited is managed by %r. -inesh Thakkar, founder chairman and managing director

and he is well supported by %r. %ukesh 0andhi, a fifteen years veteran in the market.

The group is well supported by a professional and 'ualified research team and efficient

operations and back office team, which comprises of highly dedicated and 'ualified

individuals. It has an in&house, state of art research department.

ngel (roking Limited is primarily into retail stock broking, with a customer base of retail

investors, which has been increasing at a *0R of 4


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ngel has always strived in the direction of delivering ultimate client satisfactionand developing stronger bonds with its customers and chose partners. ngel has a

vision to introduce new and innovative products and services regularly. %oreover, ngel

has been one among the pioneers to introduce the latest technological innovations and

integrate it efficiently within its business.

)* 0ar$:

Darvy *onsultants Limited was established in 4HB=. It was established by a group of

Lucknow&based practicing *hartered ccountants. t initial stage it was very small in

si!e. It was started with a capital of Rs. 4,5


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Today, Darvy has access to millions of Indian shareholders, besides companies, banks,

financial institutions and regulatory agencies. 7ver the past one and half decades,

Darvy has evolved as a veritable link between industry, finance and people. n I87

H


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of the country. The company service over 4> million individual investors, 4B< corporate

and handle corporate disbursements that eceed Rs.=5


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corporate clients. "e are head'uartered in %umbai and as of une ;


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a distribution network of branches, franchisees, representative offices and satellite

offices across ;GG cities and towns in India and offices in 3ew Nork, London, -ubai,

%auritius and 8ingapore. The 0roup services around ;.> million customer accounts.

Dotak 8ecurities has 4H5 branches servicing more than =, =


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It is a one&stop&shop, providing end&to&end financial solutions 1including mobile and

web&based services2. It has the largest non&banking distribution channel with over

4


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increased its market share among private financial companies to nearly *onvenient K

effective O nytime K anywhere financial transaction

.. #i(ion

To build a global enterprise for all our stakeholders, and

great future for our country,

To give millions of young Indians the power to shape their destiny,

The means to reali!e their full potential6

.* Mi((ion

To create and nurture a world&class, high performance environment aimed at delighting

our customers by providing endless financial products in all part of the country.

.< S4cce(( sutras of Reliance Sec4rit:

The success story of the company is driven by B success sutras adopted by it namelyE

4. Trust

=. Integrity

;. -edication

G. *ommitment

5. )nterprise

>. +ard work and Team play

J. Learning and Innovation,

B. )mpathy and +umility.

These are the values that bind success with Reliance 8ecurity

3.


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. &rod4ct Offering

Reliance 8ecurity currently deals in the following financial productsE

.) Trading &ortal

7nline trading refers to buying and selling of the shares#stocks#contracts#bonds with the

use of internet. In this shares are not issued in physical form rather they are transferred

in the demateriali!ed form in the -emat account directly

Demat acco4nt

There are many broking houses doing business in India and they charge a brokerage

on every transaction made online or offline. 1(uying and 8elling are treated as separate

transaction2. Reliance 8ecuritys advantage over others is that its charging the lowest

brokerage in the market which is just 4 paisa on every eecutive trade irrespective of

the volume traded.Reliance 8ecurity, thebrokerage and distribution arm of Reliance

- 0roup, aims to tap investors in the smaller towns and cities through a flat fee

structure.

The new wonder is Reliance 8ecurity:s pre&paid card for stock market brokerage.

Reliance 8ecurity, the financial services division of nil -hirubhai mbani 0roup&

promoted Reliance *apital, is bringing to the market pre&paid cards in denominations of

Rs5


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E@4itie(

)'uityinvestment generally refers to the buying and holding of shares of stockon a

stock marketby individuals and funds in anticipation of income from dividendsand

capital gainas the value of the stock rises. It also sometimes refers to the ac'uisition of

e'uity 1ownership2 participation in a private 1unlisted2 company or a startup1a company

being created or newly created2.

Commoditie(

single platform to trade on both the major commodity echanges i.e. 3*-)M and

%*M. In addition In&house research desk shall provide research reports on all major

commodities which shall enable in getting views for trading and diversifyclients

holdings. Trade )ecution assistance is also provided to clients.

Off(hore In$e(tment(

7ffshore investment is the keeping of 8ecurity in a jurisdiction other than one:s country

of residence. 7ffshore jurisdictions are a commonly accepted solution to reducing

ecessive ta burdens levied in most countries to both large and small scale investors

alike. The advantage to this is that such operations are both legal and less costly than

the solutions offered in the investor:s country & or SonshoreS.

7ffshore solutions are accessible to anyone who can meet the minimum investment

amount or pay the obligatory fees re'uired to open such an entity.

nother reason why :offshore: investment is superior to :onshore: investment is because

it is less regulated, and the 8atisfaction of the offshore investment provider, whether he

3&
http://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Stock_markethttp://en.wikipedia.org/wiki/Dividendhttp://en.wikipedia.org/wiki/Capital_gainhttp://en.wikipedia.org/wiki/Startup_companyhttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Stock_markethttp://en.wikipedia.org/wiki/Dividendhttp://en.wikipedia.org/wiki/Capital_gainhttp://en.wikipedia.org/wiki/Startup_company


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Reliance 8ecurity /rovide the kiosks 1similar to T%s2 Cacilities, to their customer

through which the customers can trade on available kiosks at the particular (ranch of

Reliance 8ecurity. The company are going to open these kiosks in the market as the

T%s of the (anks

Reliance Sec4rit: (hare trading acco4nt

Reliance 8ecurity unlike other brokering houses has introduced a new prepaid system

of brokerage for the share trading in which it provides the lowest form of brokerage

charged from an investor.

41


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TRADIN2 &LANS OERED B! RELIANCE SECURIT!

Target

Investor

ccess

Cee 1Rs.2

?alidity 1whichever is

earlier2Turnover Limit

Time

?alidityor

Turnover

?alidity

3on&delivery

Turnover

-elivery

Turnover

8mall 5


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a third level password 1including the login I- and /assword2 keeping the account sage

from any unauthori!ed access.

;. lei7ilit: to tran(actin )'uity, )'uity and commodity -erivatives, 7ffshore

investments, mutual funds, I/7s, Life insurance and 0eneral Insurance either through

online or through channel partners.

G. "ith the help of this #c investors can acce(( to their 7an%ing5 trading andDemat

acco4nt(without the hassle of writing che'ues. Reliance 8ecurity had tied up with @TI,

+-C* and I-(I bank to link this share trading account for the investors.

These were some of the features of $Reliance 8ecurity share trading account.

customer can do the share trading through trading kiosks installed by Reliance

8ecurity, through net, through business associates of R&8ecurity.

.. M4t4al f4nd(

43


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mutual fund represents a vehicle for collective investment. "hen you participate in a

scheme of a mutual fund, you become a part&owner of the investments held under that

scheme. The most important characteristic of a mutual fund is that the contributors and

the beneficiaries of the fund are the same class of people, namely the investors. The

term %@T@L means that investors contribute to the pool, and also benefit from the

pool.

The 8ecurity held in the trust is divided into shares of e'ual value called @3IT8.

Investors become unit&holders and are allocated units based on the amount of their

investment. The income earned through these investments and the capital

appreciation reali!ed is shared by its unit holders in proportion to the number of units

owned by them.

Investments in securities are spread across a wide cross&section of industries and

sectors and thus the risk is reduced. -iversification reduces the risk because all stocks

may not move in the same direction in the same proportion at the same time. %utual

fund issues units to the investors in accordance with 'uantum of 8ecurity invested by

them. Investors of mutual funds are known as unit holders.

Thus a mutual fund is the most suitable investment for the common man as it offers an

opportunity to invest in a diversified, professionally managed basket of securities at a

relatively low cost.

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..) E@4it:2ro8th Scheme(

The aim of growth funds is to provide capital appreciation over the medium to long&

term. 8uch schemes normally invest a major part of their corpus in e'uities. 8uch funds

have comparatively high risks. These schemes provide different options to the investors

like dividend option, capital appreciation, etc. and the investors may choose an option

depending on their preferences. The investors must indicate the option in the

application form. The mutual funds also allow the investors to change the options at a

later date. 0rowth schemes are good for investors having a long&term outlook seeking

appreciation over a period of time.

8ome of the )'uity#0rowth schemes made available by Reliance 8ecurity areE

Reliance 0rowth Cund

Reliance ?ision Cund

Reliance 3RI )'uity Cund

Reliance )'uity 7pportunities Cund

Reliance Inde Cund

Reliance Ta 8aver Cund

Reliance )'uity Cund

45


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... De7tIncome Scheme(

The aim of income funds is to provide regular and steady income to investors. 8uch

schemes generally invest in fied income securities such as bonds, corporate

debentures, 0overnment securities and 8ecurity market instruments. 8uch funds are

less risky compared to e'uity schemes. These funds are not affected because of

fluctuations in e'uity markets. +owever, opportunities of capital appreciation are also

limited in such funds. The 3?s of such funds are affected because of change in

interest rates in the country. If the interest rates fall, 3?s of such funds are likely to

increase in the short run and vice versa. +owever, long term investors may not bother

about these fluctuations.

8ome of the -ebt#Income schemes made available by Reliance 8ecurity areE

Reliance Income Cund

Reliance %edium Term Cund

Reliance 8hort Term Cund

Reliance Li'uid Cund

Reliance %onthly Income /lan

Reliance 0ilt 8ecurities Cund

Reliance Cloating Rate Cund

Reliance 3RI Income Cund

4


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..* Sector S'ecific Scheme(

These are the funds#schemes which invest in the securities of only those sectors or

industries as specified in the offer documents. e.g. /harmaceuticals, 8oftware, Cast

%oving *onsumer 0oods 1C%*02, /etroleum stocks, etc. The returns in these funds

are dependent on the performance of the respective sectors#industries. "hile these

funds may give higher returns, they are more risky compared to diversified funds.

Investors need to keep a watch on the performance of those sectors#industries and

must eit at an appropriate time. They may also seek advice of an epert.

8ome of the sector specific schemes made available by Reliance 8ecurity areE

Reliance (anking Cund

Reliance /harma Cund

Reliance %edia and )ntertainment Cund

Reliance -iversified /ower 8ector Cund

.* &orfolio management (er$ice(

Types of portfolio management sevices offered areE

.*) 2ro8th 4nd

%oderate fund with growth approach and investments predominantly in large&cap

stocks. The objective is to ensure li'uidity and lower impact cost leading to the

construction of a relatively more stable portfolio. The portfolio management process will

also focus on using cash as an investment tool and derivatives for protection of

portfolio.

In$e(tment O7ecti$e 0enerate capital appreciation in medium to long term through

4.


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investments in e'uities and e'uity related instruments comprisingof predominantly

large cap companies. This scheme will be benchmarked to the

3ifty 5< stocks.

&arameter( Dri$ing In$e(tment Deci(ion The portfolio strives at all times to

achieve an overall J


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8uch services are popular in India but almost all the offerings of large finance

companies target high networth individuals 1+3Is2 with the ability to invest Rs4 crore

and above.

Reliance 8ecurity, which helps clients invest in e'uities, derivatives and commodities,

typically offers such services for amounts between Rs5 lakh and RsJ5 lakh9 Rs5 lakh is

the smallest amount the industrys regulator mandates for /%8. Reliance 8ecurity

would not take a fee unless the portfolio earns a return higher than B. If the client

earns a return of B&=


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(ut in a highly disorgani!ed 0old market, the purity aspect and thereby the value for

ones 8ecurity during the purchase of 0old has always been a 'uestion mark. Cor the

customer, the lack of access to a branded, affordable, reliable 0old coin has always

been a matter of concern.

Reliance aims to bridge this gap by giving HH.HH pure, =G carat, 8wiss 0old coins

through its distribution network. vailable in


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Life Insurance policies have been categori!ed in the following mannerE

4. 8olution for individuals

=. solution for groups

@nder the head of solution for individual there are four bifurcations

&ROTECTION &LANS

RETIREMENT &LANS

4

. Total Investment /lan II O /ension G. "ealth +ealth /lan

=. 8uper 0olden Nears /lan 5. utomatic Investment /lan

;. 8uper 0olden Nears /lan& /lus >. 8ecurity 0uarantee /lan

SA#IN2 AND IN#ESTMENT &LAN

4. 8uper Invest ssure /lus /lan H. )ndowment /lan

=. 8uper Invest ssure /lan 4. )ndowment /lan 4=. 8pecial *ash Clow /lan


52/66

>. 8ecurity 0uarantee /lan 4G. *onnect To Life /lan

J. *ash Clow /lan 45. Imaan Investment /lan

B. 8uper %arket Return /lan 4>. 8aving Linked Insurance /lan

C6ILD &LANS

4. *hild /lan ;. "ealth +ealth plan

=. 8ecure *hild /lan G. 8uper Investssure /lan

@nder the +ead of 8olution for 0roups, there are three bifurcationsE

EM&LO!ER LIABILT!

SOLUTION

4. 0roup 8uperannuation

=. 0roup 0ratuity

;. 0roup Leave )ncashment /lan

EM&LO!EE #OLUNTAR!

BENEITS 4. 0roup 8aving Linked insurance

EM&LO!EE &ROTECTION

SOLUTION

4. 0roup *redit 8hield /lan

=. 0roup Term ssurance /lan

;. 0roup Term Insurance /lan O )-LI

7ther than above mentioned plans, Reliance has tie&up with many insurance companies

like I30 ?ysya, Dotak , I*I*I prudential, +-C* standard life insurance etc.

52


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Reliance 8ecurity also offers life insurance policies of all the above mentioned

companies other than its own life insurance products

., 2ENERAL INSURANCE

It has also been categori!ed in the following mannerE

.,) or indi$id4al(

6EALT6 INSURANCE4. +ealth "ise /olicy=. Individual %ediclaim Insurance /olicy

MOTOR INSURANCE

4. Two "heeler Insurance /olicy.

=. /rivate *ar Insurance /olicy

6OME INSURANCE

4. +ome /rotect /olicy

=. +ouseholders /ackage /olicy

TRA#EL INSURANCE

53


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4. Travel *are Insurance /olicy Cor Individuals

nd Camilies

=. Travel *are Insurance /olicy Cor 8tudents

;. Travel *are Insurance /olicy& sia

G. /ravasi (hartiya (ima Nojana Insurance

/olicy

ACCIDENT CO#ER

INSURANCE

4.Individual /ersonal ccident /olicy

54


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.,. or Cor'orate(

IRE

INSURANCE

4. 8tandard Cire nd 8pecial /erils /olicy

=. *onse'uential Loss /olicy

;. Industrial ll Risks /olicy

EN2INEERIN2

INSURANCE

4. )rection ll Risks# 8tormage&cum&)rection

insurance /olicy

=. *ontractors ll Risks insurance /olicy

;. *ontractors /lant and %achinery /olicy

G. %achinery Loss 7f /rofits Insurance /olicy

5. (oiler and /ressure /lant Insurance /olicy

>. )lectronic )'uipment Insurance /olicy

J. %achinery Insurance /olicy

MARINE

INSURANCE

4.%arine *argo Insurance /olicy

LIABILIT!

INSURANCE

4. -irectors and 7fficial Liability /olicy

=. "orkmens *ompensation Insurance /olicy

;. /rofessional Indemnity Insurance /olicy

G. /roduct Liability Insurance /olicy

5. /ublic Liabilty Insurance /olicy

>. /ublic Liability1ct2 Insurance /olicy

55


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&AC0A2ES

INSURANCE

4. 7ffice /ackage /olicy

=. *ommercial *are Insurance /olicy

;. Industry *are Insurance /olicy

G. 8hopkeepers /ackage /olicy

.,* Other mi(cellaneo4( 'lan(

4. 8ecurity Insurance /olicy

=. (urgulary and +ouse (reaking Insurance /olicy

;. Cidelty 0uarantee Insurance /olicy

The above mentioned products belong to reliance general

insurance but reliance 8ecurity is also engaged in selling general

insurance policies of other companies like *hola mandalan, ICC*7 T7DN7 etc.

. Con(4mer finance

.) &er(onal loan(

5


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)asy and hassle&free personal loans at attractive interest rates are offered up to I3R 4J,


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Reliance 8ecurity has given new brand identity for Travelmate 8ervices and is dealing

in 8ecurity *hanging 8ervices and Cull&Cledged 8ecurityTransfer (usiness

India is the largest recipient of global remittance of around A =J billion which is more

than 4< percent of the total global remittance inflow of A =G< billion. This is continuously

rising due to labor migration

*urrently Reliance 8ecurity )press operates through a network of ;G


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marketplace. t Reliance 8ecurity, the implementation and observance of ethical

processes and policies has helped us in standing up to the scrutiny of our domestic and

international investors.

.)+ Management

The management at Reliance 8ecurity is committed to good *orporate 0overnance,

which includes transparency and timely dissemination of information to its investors and

unit holders. The (oard of -irectors of R*% is a professional body, including well&

eperienced and knowledgeable Independent %embers. Regular udit *ommittee

meetings are conducted to review the operations and performance of the company.

.)) Em'lo:ee(

Reliance 8ecurity has at present, a code of conduct for all its officers. It has a clearly

defined prohibition on insider trading policy and regulations. The management believes

in the principles of propriety and utmost care is taken while handling public 8ecurity,

making proper and ade'uate disclosures. ll personnel at Reliance 8ecurity are made

aware of their rights, obligations and duties as part of the -ealing /olicy laid down in

terms of 8)(I guidelines. They are taken through a well&designed +R program,

conducted to impart work ethics, the *ode of *onduct, information security, Internet and

e&mail usage and a host of other issues.

7ne of the core objectives is to identify issues considered sensitive by global corporate

standards, and implement policies#guidelines in conformity with the best practices as an

ongoing process. Reliance *apital sset %anagement Ltd. gives top priority to

compliance in true letter and spirit, fully understanding its fiduciary responsibilities.

.). Social Re('on(i7ilitie(

5&


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7rgani!ations, like individuals, depend for their survival, sustenance and growth on the

support and goodwill of the communities of which they are an integral part, and must

pay back this generosity in every way they can.

This ethical standpoint, derived from the vision of the founder, lies at the heart of the

*8R philosophy of the Reliance 0roup.

"hile they strongly believe that their primary obligation or duty as corporate entities is to

their shareholders O they are just as mindful of the fact that this imperative does not

eist in isolation9 it is part of a much larger compact which they have with their entire

body of stakeholdersE Crom employees, customers and vendors to business partners,

eco&system, local communities, and society at large.

They evaluate and assess each critical business decision or choice from the point of

view of diverse stakeholder interest, driven by the need to minimi!e risk and to pro&

actively address long&term social, economic and environmental costs and concerns. Cor

them, being socially responsible is not an occasional act of charity or that one&time

token financial contribution to the local school, hospital or environmental 307. It is an

ongoing year&round commitment, which is integrated into the very core of their business

objectives and strategy.

(ecause they believe that there is no contradiction between doing well and doing right.

Indeed, doing right is a necessary condition for doing well.


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)ach of Reliance *apitals different businesses vigorously implement their own *8R

initiatives. Indeed, their *8R efforts are counted when calculating the businesss

performance for the year. 8ome of the work done by them includeE

4. (lood donation campsWin %umbai, but also in other cities such as (angalore,

*hennai, and .

=. -onating old computers to local schools in 3avi %umbai.

;. *elebrating Independence -ay with the less privilegedWstreet children are taken

to amusement parks, donations are given to 307s working with children or the

aged or to the %issionaries of *harity. gain, this is done across the country from

Raipur to aipur, from Dolkata to Lucknow.

G. 8imilar initiatives are undertaken on -iwali or on *hristmas.

5. (ihar was stuck by calamitous flooding last year. Reliance *apital employees

working with their businesses generously donated clothes and 8ecurity for the

relief effort.

>. -irect cash aid for paying the medical epenses of life&threatening re'uirements

for some under&privileged people is also done by one of the businesses

.)* To' Management &rofile

1


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8udip (andyopadhyay, G5 is the %anaging -irector of Reliance 8ecurity. +e has been

with Reliance *apital since %ay =


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It is Indias first insurance company to be awarded the ISO F++).+++certification

across all functions, processes, products and locations pan&

India. The 'uality assurance provides an edge over other players.

*ompany issued ;>.5J Lac policies during the year as compared to 4G.>< Lac in

the previous year thereby registering a growth of 45


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The *ompany has earned Rs.4


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O''ort4nitie(

IR- has removed controls on pricing in 0eneral Insurance business with effect

from 4st anuary, =


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&(harti a 0eneral Insurance *ompany Ltd. &une =

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