Market Research on Investor Attitude Towards Primary Market

7/29/2019 Market Research on Investor Attitude Towards Primary Market

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MARKET RESEARCH ON INVESTOR ATTITUDE TOWARDS PRIMARY MARKET | 1


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Industrial profile

The securities market in India has visited several policies initiatives, which

have refined the market micro structure, modernize operation and broadened

investment choice for the investors. The irregularities in the security transaction

in the last quarter of 2000-2001, hastened the introduction and implementation

of several reforms. While a joint parliamentary committee was constituted to go

into the irregularities and manipulation in all their raminification in all

transaction related to securities, decisions were taken to complete the process of

demutualization and corporation of stock exchange to separate ownership,

management and trading right on stock exchange and to effect legislative

change for investors protection, and to enhance the effectiveness of SEBI as the

capital market regulator. Rolling statement on T+5 basis was introduce in

respect of most active 251 securities from July 2, 2001 and in respect of balance

securities from 31st December 2001. Rolling statement on T+3 basis was

commenced for all listed securities from April 1, 2002 to and subsequently on

T+2 basis from April 1, 2003.


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The derivative trading on NSE commenced with the S&P CNX Nifty Index

future on June 12, 2000. The Trading in Index option commenced on June 4,

20001 and trading in option on individual securities commenced on July 2,

2001. Single stock futures were launch on November 9, 2001. Due to rapid

change in volatility in the securities market from time to time, there was a need

felt for a measure of market volatility in the form of an index that would help

the market participants. NSE launch the India VIX, a volatility index based on

the S&P CNX Nifty index option price. Volatility index is a measure of markets

expectation of volatility over the near term.

The Indian stock market regulator, securities and exchange Board of India

(SEBI) allowed the direct market access (DMA) facilities to investors in India

on April 3, 2008. To begin with, DMA was extended to the institutional

investors. In addition to the DMA facility, SEBI also decided to permit all

classes of investors to short sell and the facility for securities lending and

borrowing scheme was operationalised on April 21, 2008.


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The Debth markets in India have also witnessed a series of reforms, beginning

in the year 2001-20002 which was quite eventful for debt market in India,

which implements of several important decisions like setting up of cleaning

corporation for government securities, a negotiated dealing system to facilitate

transparent electronic bidding in auction and secondary market transaction on a

real time basis and dematerialization in debt instrument, further there was

adoption of modified delivery-versus-payment mode of settlement (DVP III in

March 2004).The settlement system for transaction in government securities

was standardize to 11 T+1 cycle on May11,2005. To provide bank and another

institutions with more advance and more efficient trading platform (NDSOM)

Was introduce on August 2005.Short sales was permitted in G-secs in 2006 to

provide an opportunity to market participant to manage their interest rate risk

more effectively and to improve liquidity in the market, when issued (WI)

trading in central government securities was introduced in 2006. As a result of

the gradual reform process undertaken over the years, the Indian G-Sec market

has become increasingly broad-based and characterized by an efficient auction

process, an active secondary market, electronic trading and settlement

technology that ensure safe settlement with straight through processing


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Company profile

Reliance Securities Limited is a Reliance Capital company and part of the Reliance

Group.

Reliance Securities endeavors to change the way investors transact in equities markets

and avails services. It provides customers with access to Equity, Derivatives, Mutual

Funds & IPOs. It also offers secured online share trading platform and investment

activities in secure, cost effective and convenient manner. To enable wider

participation, it also provides the convenience of trading offline through variety of

means, including Call & Trade, Branch dealing Desk and its network of affiliates.

Reliance Securities has a pan India presence at more than 1,700 locations.

Reliance Capital is one of India's leading and fastest growing private sector financial

services companies, and ranks among the top 3 private sector financial services and

banking groups, in terms of net worth

Reliance Securities Ltd (Reliance Securities), a Reliance Capital company is one of

the

leading brokerage houses and distribution arms of the Reliance Anil Dhirubhai

Ambani Group (RDAG). The firm was established in 2005 and offers comprehensive

services


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such as trading in equity, derivatives, investment banking, portfolio management

services (PMS), wealth management services (WMS), research & distribution of

financialproducts such as mutual funds, insurance and IPOs among others. Reliance

Securitiesis present in the currency and debt market segment as well.

Reliance Securities acquired memberships of the premium stock exchanges in India,

namely BSE and NSE in 2005 and 2006 respectively. It offers trading facilities in the

cash and derivatives market segment of both NSE and BSE. The company

providestrading in the debt market segment as well.

Reliance Securities is headquartered in Mumbai with operations across all major

Indian cities. Majority of the companys terminals are located in Mumbai. It has a

vast network spread across 3,393 cities, with 116 offices, and 2,822 equity broking

terminals allocated to 2,943 registered sub-brokers.

As on Dec 31, 2009, Reliance Securities had 73 NEAT terminals, 40 BOLT terminals

and 2,709 CTCL licenses. During the same period, the company added 1,84,550 client

accounts of which 1,82,720 were e-broking accounts.


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Vision :- To be an insurer of world standard and the most preferred choice for clientele

at domestic and global level.

Through sustainable measures, create value for nation.

Enhance quality of life across the entire social-economic.

Mission:-Reliance security mission is to keep the customer satisfaction as focal point of all our

operation ,adopt the best international practices in underwriting claim and customer

service, be the most innovative in product development, establish presence all over

India, ensure sustained value addition to all stake holders and to upload corporate

value and corporate Governence.


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Product and services

Trading: - Reliance Securities facilitates trading activities in all the major

market segments including, cash, derivatives, debt and currency futures.

The company offers online trading facility through its website, www.rsec.co.in.

Reliance Securities has recently migrated all its customers to its new trading platform,

Insta Plus and Insta Express. Apart from internet trading, customers are also provided

with the option of trading through the Call & Trade facility and through RSec.mobi, a

personal mobile phone service. Clients can place and track their orders on BSE and

NSE on a real time basis with access to RSec.mobi. This facility is available to

Reliance Securities trading account holders across all mobile platforms independent

of device, operator and the underlying carrier technology.


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Distribution of financial product:-

Reliance Securities is involved in the distribution of financial products such as

mutual funds, insurance and IPOs.

DEMAT Services: The company offers DEMAT services through

Reliance Capital and is registered with NSDL AND CDSL.

PMS: - Reliance security is a SEBI registered portfolio manager and offer

customized service to their to their client which is design to meet their investment

objective. These services covers all administrative aspects while providing periodic

reporting to clients.

Mutual fund: - A mutual fund is a professionally managed fund of the

collective investments that collect money from many in its stocks. bonds ,short term

money market instrument and other securities .Reliance security offer expert advice

on mutual fund .Mutual fund are consider to have low risk factors owing to

diversification into various sector and scripts or instrument within.


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Insurance :-

Life Insurance: - Reliance security assist its client in choosing a customer

planed based which will secure a families future and their expense post retirement.

Client choose different plan of almost all insurance company where they can invest

their money. Client can choose from product and services that channelize their saving

and their protect their need while guaranteeing security and return for life. A team of

expert will suggest the best insurance scheme which suite the clients insurance.

General Insurance: - General insurance is all about protecting against all

kind of insurable risk. Reliance security assists their customers in areas of Health,

insurance, Home insurance, Motor insurance and Travel *insurance


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Area of operation:-

NationalReliance Securities is headquartered in Mumbai with operations across all major

Indian cities. Majority of the companys terminals are located in Mumbai. It has a

vast network spread across 3,393 cities, with 116 offices, and 2,822 equity broking

terminals allocated to 2,943 registered sub-brokers.

As on Dec 31, 2009, Reliance Securities had 73 NEAT terminals, 40 BOLT terminals.


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Ownership pattern of Reliance security

Reliance Capital is one of India's leading and fastest growing private sector financial services

companies, and ranks among the top 3 in terms of net worth.

Reliance Money, a Reliance Capital company, is part of the Reliance Anil Dhirubhai Ambani

Group. It is a comprehensive financial services and solution provider providing customers

with access to Equity, Equity and Commodity Derivatives, Portfolio Management Services,

Mutual Funds, lPOs, Life and General Insurance and Gold Coins. Customers can also avail

Loans, Credit Card, Money Transfer and Money Changing services. The largest braking

house in India with over 2.5 million customers and a wide network of over 10,000 outlets and

20,000 touch points in 5,000+ locations. The average daily volume on the stock exchanges is

Rs. 2,000 crores, representing approximately 3% of the total stock exchange volume.

The Reliance - Ani! Dhirubhai Ambani Group has a market capitalization of Rs.325,000

crores (US$ 81 billion), net assets in excess of Rs.115,OOO crores (US$ 29 billion), and net

worth to the tune of Rs.55,000 crores (US$ 14 billion). Across different companies, the group

has a customer base of over 100 million, the largest in India, and a shareholder base of over

12 million, among the largest in the world. It has a business presence that extends to over

20000 towns and 4.5lakhs villages in India and 5 continents across the world.


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Competitors Information

HDFC Securities:-HDFC Securities (HDFCsec) is Equity Trading Company of HDFC Bank.

HDFC Securities provide both online trading and trading on phone. The HDFC

Securities trading account has a unique 3-in-1 feature that integrates your

HDFC Securities trading account with your existing HDFC bank savings

account and existing Demat account. Funds / shares are seamlessly moved from

the linked Demat/Bank account to execute the transactions.

Features of HDFC Securities on line Trading

Seamless Transactions - By integrating your accounts, we ensure minimal

waste of time during movement of your funds and shares.

Speed - Orders are placed electronically, so proceeds are available instantly.

No manipulation - To prevent any mismanagement, we will send you an email

confirmation, the minute your order is executed.

Safety and Security - HDFC Securities offer the highest level of security such

as 128-bit encryption technology.


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Dedicated and Separate contact numbers - for trading over the phone as well as

for customer care.

ICICI Direct:-

ICICI Direct is the is stock trading company of ICICI Bank. Along with stock

trading and trading in derivatives in BSE and NSE, It also provide facility to

invest in IPOs, Mutual funds and bonds. Trading is available in BSE and NSE.

ICICI Direct 2 trading platform 2 its customers

Share Trading Account(website based Trading):-

Website based online Trading Account by ICICI Direct is primary for

buying and selling of stocks at BSE and NSE. The ICICI Direct

website allows cash, Margin Trading, Margin plus Trading, Spot

Trading, Buy y Today and sell Tomorrow, IPO Investment, Mutual

fund Investment etc.

Trade Racer(Terminal Trading):-Trade Racer is the

power packed Trading platform which provides an Investors with Live

streaming quotes & Research calls, Integrated fund transfer system

along with multiple watch list facility. Investors can also do technical


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analysis with the help of advance charting tool. Single order entry

page for Equities and derivatives, Technical Analysis, Integrated fund

Transfer system, Customize Interface, Intra- day and EOD Charts and

short cut keys for faster access tomarket are some of the key feature of

Trade Racer Terminal

ICICI Trade Advantages:-

Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal

Savings Schemes all from one website. General Insurance is also

available from ICICI Lombard.

Trading is available in both BSE and NSE.

Low bandwidth website is available for slow internet connection or for

trading from mobile devices.

Through my GTC feature, you can place buy and sell limit orders in

equity scripts of your choice; specifying the period for which you want

the order instruction to be valid.


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ICICI Trade Disadvantages:-

ICICI Direct brokerage is high and not negotiable.

With ICICIdirect.com e-Invest account(3-IN-1 concept), the Demat

Account has to be opened with ICICI Bank Ltd as the Depository

Participant (DP) and the Bank Account has to be opened with ICICI

Bank Ltd. as the Banker

Sharekhan securities

Sharekhan was created when SSKI Investor Services Pvt. Ltd., a company in

the securities and equities segment decided to harness the power of the Internet

and offer services to its customers through an online stock trading portal.

Sharekhan brings and provides a user-friendly online trading facility. They also

have an extensive all-India ground network of franchisees across the country.

The company offers its services through a combination of online and offline channels.

The online model comprises a portal, chat facilities, and 'speed trade' terminals. And

the offline model uses a combination of an IVR infrastructure and a team of customer

agents to receive orders over the telephone.


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Kotak Securities

Kotak Securities Limited, a 100% subsidiary of Kotak Mahindra Bank, is the

stock broking and distribution arm of the Kotak Mahindra Group. Kotak

Mahindra is one of India's leading financial institutions, offering complete

financial solutions that encompass every sphere of life. From commercial

banking, to stock broking, to mutual funds, to life insurance, to investment

banking, the group caters to the financial needs of individuals and corporate.

Kotak also offers stock broking through the branch and Internet, Investments in

IPO, Mutual funds and Portfolio management service.


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Awards and Achievement

Most Admired Service Provider in Financial Sector by IPE BFSI, 2012

Indian E-Retail Awards for Best Customer Experience Award' by Franchise

India, 2012.

My FM Stars of the Industry 2012'for excellence in Online Demat (Broking

category).

Reliance Securities Limited is now ISO 9001:2008 certified for Online Trading

PlatformBrand Leadership Legacy Award' at the Asian Leadership Awards -

Dubai, 2011

My FM Stars of the Industry 2011 for excellence in Online Demat / Broking

Largest E-Broking House 2010 by Dun & Bradstreet.

Largest E-Broking House & Best Equity Broking House for the year 2009' by

Dun & Bradstreet.

Best in category Service Franchise' at the 6th International Franchise & Retail

show 2008.

Best E-Brokerage House 2008 (runner's up) by Outlook Money NDTV Profit

Awards.


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Future Growth and prospects of Reliance Security

Reliance capital and its subsidies company like Reliance securities has drawn up

exciting growth plan and it intends to more then double its customer base in the next

3-5 years

The company also expects to benefit in its proposed banking foray through

partnership with Japan's Sumitomo Mitsui Trust Bank and Nippon Life Insurance,

Ambani said in his annual letter to shareholders as Chairman of Reliance Capital.

Increase customer base from 20 million to 50 million.

Increase the distribution reach to 25 thousand cities and towns.

Increase the number of business partner.

The Company continued to contribute actively to community welfare activities and

took up several initiatives and measures related to education and healthcare


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Work Flow Model :-

Marketing Team + Fund Management Team

Valuation / Scope

Promotional Activity

Sales

Operations


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The Mc Kinsey 7s Framework:-

The Mc Kinsey 7s Framework is a management model developed by well known

business consultant Robert H. waterman and Tom peters in the 1980s. This was the

strategic vision for group to include business, business unit and teams. The 7s are

structure, strategy, system, skill, style, staff, and share value.

Objective of the Model:-

Improve performance of the company.

Examine the likely effect of future changes with the company.

Allign departments and processes during a merger and acquisition.

Determine how best to implement a proposed strategy.


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The Mc Kinsey 7s model involves seven independent factors which are categories as

either hard or soft elements.

Hard Elements Soft Elements

Strategy Shared values

Structure Skills

Systems Style

Staff

Hard elements are easy to define or indentify and management can directly influence

them. These are strategy statement, organization charts and reporting lines; and

formal processes and IT system Soft element on other hand can be more difficult to

describe and are less tangible and more influence by culture. However these soft

elements are as important as hard element if organization is going to be successful.


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Lets look at each of the element specifically

Strategy: the plan devised to maintain and build competitive advantage

over the competition.

Structure: the way the organization is structured and who reports to

whom.

Systems: the daily activities and procedures that staff members engage in

to get the job done.

Shared values:called superordinate goals when the model was first

develop; these are the core value of the company that is evidence in the

corporate culture and general work ethic.

Style:the style of leadership adopted.

Staff: the employees and their general capabilities.

Skills: the actual skills and competencies of the employees working for the

company.


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SWOT ANALYSIS

STRENTH:-

Excellent service.

Customization product as per customer need.

Brand Image.

Among the fast growing company in India.

Strong financial base in India.

WEAKNESS:-

Company some policy are typical which is not understood by

customers.

Client face the problem due to large number of formality.

Its infrastructure is not better then other private companies.

Company only focus in metros and cities, not in village and

small town.


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OPPORTUNITIES:-

Company should divert its direction to villages and gain

customers.

Company should adopt policy so that customers accept

their norms and condition easily.

To create its brand a Company awareness in India first as

well as in whole world.

THREATS:-

Week perception of private players in the mind of Indian

people due to frequent financial scams.

Company gets tough competition from other companies.

Existing wrong business practices of companies like LIC

first premium is paid by their agent where-as IRDA

suggests that even forms to be filled by the clients

themselves.


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Analysis of financial data

Mar '12 Mar '11 Mar10

Investment Valuation Ratios

Face Value 10.00 10.00 10.00

Dividend Per Share 7.50 6.50 6.50

Operating Profit Per Share (Rs) 108.41 57.09 69.94

Net Operating Profit Per Share (Rs) 133.04 74.92 96.35

Free Reserves Per Share (Rs) -- 234.77 233.68

Bonus in Equity Capital -- -- --

Profitability Ratios

Operating Profit Margin(%) 81.48 76.20 72.59

Profit Before Interest And Tax Margin(%) 79.49 73.30 71.63

Gross Profit Margin(%) 80.69 75.42 71.82

Cash Profit Margin(%) 16.43 11.91 14.52

Adjusted Cash Margin(%) 16.43 11.91 14.52

Net Profit Margin(%) 15.64 12.10 14.30

Adjusted Net Profit Margin(%) 15.64 12.10 14.30

Return On Capital Employed(%) 10.59 5.64 9.02


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Return On Net Worth(%) 4.69 3.29 4.92

Adjusted Return on Net Worth(%) 4.69 3.03 4.74

Return on Assets Excluding Revaluations449.61 283.28 280.32

Return on Assets Including Revaluations 449.61 283.28 280.32

Return on Long Term Funds(%) 12.25 5.85 9.85

Liquidity And Solvency Ratios

Current Ratio 1.92 6.50 2.48

Quick Ratio 3.36 13.81 7.43

Debt Equity Ratio 1.30 2.63 1.72

Long Term Debt Equity Ratio 0.98 2.50 1.49

Debt Coverage Ratios

Interest Cover 1.30 1.16 1.35

Total Debt to Owners Fund 1.30 2.63 1.72

Financial Charges Coverage Ratio 1.31 1.15 1.34

Financial Charges Coverage Ratio Post

Tax

1.26 1.19 1.28

Management Efficiency Ratios

Inventory Turnover Ratio -- -- --

Debtors Turnover Ratio 31.17 26.69 23.35


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Investments Turnover Ratio -- -- --

Fixed Assets Turnover Ratio -- -- --

Total Assets Turnover Ratio -- -- --

Asset Turnover Ratio 0.13 0.08 0.12

Average Raw Material Holding -- -- --

Average Finished Goods Held -- -- --

Number of Days In Working Capital 1,252.95 2,755.29 1,216.93

Profit & Loss Account Ratios

Material Cost Composition -- -- --

Imported Composition of Raw Materials

Consumed

-- -- --

Selling Distribution Cost Composition -- 3.46 5.06

Expenses as Composition of Total Sales -- -- --

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 36.80 70.32 55.03

Dividend Payout Ratio Cash Profit 35.04 66.18 52.24

Earning Retention Ratio 63.20 23.72 42.80

Cash Earning Retention Ratio 64.96 28.56 45.81

AdjustedCash Flow Times 26.27 81.90 34.69


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Mar '12 Mar '11 Mar '10

Earnings Per Share 21.13 9.33 13.82

Book Value 449.61 286.11 283.31


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LEARNING EXPERIENCE AT RELIANCE

SECURITY

At Reliance security our batch was divided into 4-5 student per batch so that it will be

easily for students to know basic concept of financial market as well as background

and History of Reliance security Further we were imparted with product knowledge,

sufficient time was given to us to know about the product. Some of the important

products of Reliance security are as follows

Equity

Derivative

Mutual Fund

IPO

NCDs and Bonds

Special lectures were arrange for Trainees and every week we learn about different

policy and product of Reliance security which they offer to their customers


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1st week:-Our Training process start with brief History of Reliance capital and its subsidies

company, Further we discuss about Trading and type of Trading like Intra Day

Trading, MIS, NRML, Cash and carry, Future Trading, call buy and put buy.

Including this we discuss about Insurance sector and basic Information about Adyta

Birla Group was also provided.

2nd

week:-During this week our training secession was about marketing strategy which are used

in Insurance sector and formalities which need to be fulfilled for opening of Demat

Account and its importance. last two days of the week was for introduction to online

trading (NSE AND BSE)

3nd week:-During Third week of our Training, we discuss about Mutual fund, classes was

arrange by our Branch head so that interns can understand basic concept about Mutual

fund. Including this opportunity was provided to us to enhance our practical skill by

allowing us to work on terminal and last two days we discuss about Importance of

systematic Investment planning.


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4th week:-After the completion of training secessions we were asked to do Market survey where

our task was to interact with client and to provide them information about products of

Reliance security and new scheme which are there for customers.

5th week:-Fifth week we continue with market survey, we were asked to judge the preferences

of client ,if they used the products of Reliance security what were the reason for that

and if not what the reason.

6th week:-Now we start with preparation of our assign project report which is included with

collection of secondary data, preparation of questionnaire. Primary objective of this

project is to know investors attitude towards primary market.

7th week:-Seventh week we continue with market survey and preparation of questionnaire

including this we start working for our assign project.


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INTRODUCTION TO PRIMARY MARKET

Generally, the personal savings of the entrepreneur along with contributions from

friends and relatives are pooled in to start new business ventures or to expand existing

ones. However this may not be feasible in the case of capital incentive or large project

as the entrepreneurs (promoters) may not be able to bring in his share of contribution

(equity), which may be sizable, even after availing term loan from financial

Institution/Banks. Thus the availability of capital is the major constraint for the setting

up or expanding ventures on a large scale. Instead of depending on limited pool of

saving of a small saving of friends and relatives, the promoters can invite investment

to his or her venture by issuing offer document which give full details about track

records, the company, the nature of project, the business model, etc.

If the investor is comfortable with this proposed venture, he may invest and thus

become shareholder of the company. Through aggregation, even small amount

available with the large number of individuals translate into usable capital for

corporate. Primary market is market where in corporate issue new securities for

raising funds generally for long term capital requirement.

The companies that issue their share are called issuers and process of issuing share to

public is known as public issue. This entire process involves various intermediaries

like Merchant Banker, Bankers to the issue, underwriters and Registrars to the issue

etc All these registrars are register with SEBI and are required to abide by the


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prescribe norms to protect the investors. The primary market is, hence, the market that

provides a channel for issuance of new securities by issuer (Government companies or

corporate) to raise capital. The securities (financial instrument) may be issue at face

value, or at a discount/premium in various forms such as equity, debt etc. They may

be issue in the domestic and or/ international market.


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Features of primary market include:-

The securities are issued by the company directly to the investors.

The company receives the money and issues new securities to the

investors.

The primary market are used by companies for the purpose of setting up

new ventures/business or for expanding or modernizing the the existing

business.

Primary market performs the crucial function of facilitating capital

information in the economy.


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Problem Definition

There are several problems which are face by primary market. Some of them may be

discuss as follows

Withdrawal of IPOs:- One of the major problem which lies

these days, IPOs are increasingly being withdrawn. An expert has

rightly said that there is no point expressing disappointment in the

withdrawal of IPOs because it may be taken not as an indication of

failure of the company and hence the primary market but it may be

consider as a disagreement of price between the seller and buyer. The

primary market are undulating the world over. The incident accruing in

the primary market is reflection of what is actually happening in the

secondary market. It was fathomed that IPOs, which were lately taken

back had very aggressive price bands. The price band could have been

aligned as per existing condition of market. The lead managers

responsible for IPOs may also be blamed for the catastrophe. Few are of

the option that lack of judgment may have led to the withdrawal.

Investors fatigue is being accounted for in the withdrawals.


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Cornering of shares:- Recently there was an instant when

investor cornered shares, which were to be allotted to the public. The

investors

were actually a big investor who camouflaged as a small investors

corned many share.

Grey markets and manipulation:- Other problem

which is faced by primary market is over subscription of shares. There

are instances when the greymarkets usually have high premia, which

collapse as soon as issues are listed. These indicate that for vested

interests manipulation in the market are rampant.


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The following measures have been suggested by economist for overcoming problems

of primary market.

The practice of part payment of shares may be removed.

The process of application money pertaining to the shares could

become uniform among different investors categories.

Restricting the company entry into primary market if that company had

withdrawn share from the market at least for a span of 12 months.

Making the process of book building more effective as well as making

book builders more efficient.


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Objective of study:-

For conducting this research following objectives were set

To evaluate investor attitude towards stock market operations in

cash and derivative segments.

To analyze the investors preference towards traditional trading and

online trading in cash and derivative segments.

To study the problem (both actually faced and anticipated) of

investors.

To suggest appropriate strategies to investors for taking right

investment decision in stock market.

To study and analyze the impact of various demographic factor on

investors attitude towards primary market.


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Scope of the study:-

The Research study undertaken does not probe too much about that which type of

market is more beneficial for investors. The research involves only a general study

related to investors attitude towards primary market. The research would reveal

results regarding investors attitude towards primary market, what are the factors

which influence investors to invest in primary market and thus in turn help in

knowing attitude of investors

The study has helped us to know real time experience by interacting with

investors and has help us to analyze the attitude of investors towards primary

market.

The study will help all financial companies for future planning.

The study has been done with a motive to change the attitude of investors and

help them gain more knowledge on their investment.


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Research Methodology:-

Research objective:- To know the attitude of Investors towards

primary market.

Research Size:- Fifty Random People

Types of research design:-

This is descriptive research as this research including surveys and fact finding

inquires of different kinds. So descriptive research help in knowing about

particular item or group of items in other words it describes the state as it exist

it present.


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Limitation of the study:-

The lack of information sources from the analyst part.

Time and money are the main factors to limiting the study.

Though I tried to collect primary data, but they were inadequate for the

purpose of study

It was difficult to judge the attitude of investors because most of them are not

aware difference between primary and secondary market.

Extreme variability in market.

Research has been done only in Dehradun.


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Data Analysis and Interpretation1. Do you invest your money?

(a) Yes (b) No

Awareness about Investment Percentage of respondent

Yes 78%

No 22%

Interpretation:-This pie chart show that most of the people invest their

money frequently and they will surely invest if particular scheme if beneficial for

them.

Awareness

, 78%

Awareness, 22%

Awareness

Yes

No


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2. In which tool you mostly park your money?

(a) Life Insurance (b) Health Insurance (c) Bonds (d) other-------------

Different Tools Investment in percentage

Life Insurance 33%

Health Insurance 26%

Bonds 24%

Other 17%

Interpretation:-This pie chart show that 33% prefer to

Invest in Life Insurance , 26% in Health Insurance, 22% in Bonds

and 17% prefer to invest in other categories.

Bonds22%

HealthInsurance

26%

Life Insurance33%

Other17%

Different Tools


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3. Are you interested investing your money in securities?

(a) Yes (b) No

Preference to Invest Percentage of respondent

Yes 63%

No 37%

Interpretation:-

Most of the people are interested to invest their money in securities but its

important to provide them better schemes so that they can be satisfied and

more and more customer can be attracted.

Awareness,63%

Awareness,37%

Preference to Invest in security

Yes No


47/60


4. If yes, in which market you prefer to Invest?

(a) Primary Market (b) Secondary market

Preference to Invest Percentage of respondent

Primary Market 37%

Secondary Market 63%

Interpretation:-

Most of the investors prefer to Invest in secondary market as

compared to primary market and it.

SecondaryMarket, 63%

PrimaryMarket, 37%

Preference to Invest in security


48/60


5. How frequently you Invest in primary market?

(a) Monthly (b) Quarterly (c ) Half yearly (d) yearly

Investment Percentage of Investment

Monthly 8%

Quarterly 12%

Half yearly 33%

Yearly 47%

Interpretation: - In primary market 47% of customer prefers to Invest

on yearly basis, 33% on half yearly basis, 12% invest on quarterly basis and

only 8% invest on monthly basis

Yearly,47%

Half yearly,33%

Monthly, 8%

Quarterly,12%

Periodic Investment


49/60


6. What factors influence you to invest in primary market?

(a) Bank Saving (b) Mutual Fund (c) Real Estate (d) stock market (e) other

factors On percentage basis

Bank Saving 35

Mutual Fund 20

Real Estat 7

Stock Market 25

Other 13

Interpretation:-Above data indicate that about 35% of investors are

influence because of bank saving, 25% because of stock market, 20% get

influence due to mutual fund, 7% by real estate and another 13% are influence

because of some another factor to invest in primary market

Bank Saving35%

Mutual Fund20%

Real Estat7%

stock Market25%

other13%

Factors

Bank Saving Mutual Fund Real Estat stock Market other


50/60


7. In which company share have you invested recently in primary market?

(a) Rel securities (b) ICICI Direct(c) HDFC securities (d) other-------------

Company percentage of Investment

Reliance securities 35%

ICICI Direct 27

HDFC securities 28

Other 18

Interpretation:-The above pie chart indicate that 32% investors prefer to

invest through Reliance securities, 26% invest in HDFC securities, 24% of investors

invest through ICICI securities and 18% of investors use services of another

companies.

HDFCsecurities

26%

ICICIDirect24%

Reliance

securities32%

Other17%

Investment in different companies


51/60


8. Are you satisfied with your present investment in primary market?

(a) Yes (b) No

Satisfaction Level Percentage of respondent

Yes 66%

No 34%

Interpretation:-

About 66% of investors who invest in primary market are satisfied and around

34% of investors are not satisfied.

Satisfied, 66%

unsatisfied, 34%

Satisfaction level of Investors


52/60


9. Given the fluctuation of any investment of any investment portfolio, how

long would you be willing to wait your investment to regain any lost value?

Periodic basis percentage of Investment

Less than three month 14%

Three to six month 22%

Six month to one year 28%

One to two years 36%

Interpretation:-This pie chart show us that about 36% investors can wait for

about one to two years, 28% investors can wait for six month to one year, 22 % can

wait for around three to six month and only 14% will wait only for less than three

month.

six to oneyears,28%

Three to six

month,22%

one to twoyears,36%

Less thenthree

month,14%

Investment in different companies


53/60



(a) Yes (b) No

Satisfaction Level Percentage of respondent

Yes 42%

No 58%

Interpretation:-Only 42% investors are satisfied investing in primary and

about 58% investors are not satisfied.

Yes, 42%

No, 58%

Satisfaction level of Investors


54/60


Observation

Reliance security provide good working environment to its employees.

Employees working in Reliance security are highly skilled and efficient.

On regular time basis training secession are arrange for both employees as well

as trainees.

Primary concern of Reliance security is to provide better service to its

customers.

Encourage ideas, talents and value systems.

Reliance security focuses its attention on upholding the guideline principle of

trust, integrity and transparency in all aspects of integrations and dealings.

Reliance security focuses its attention in providing good quality, efficiency,

operational performance.


55/60


Suggestion

Reliance security should try to provide more information about their products

and scheme to its customers.

Reliance security must provide necessary information about stock market to its

new customers before they invest in market.

Regular training secession should be provided for employees as well as

customers.

Reliance security should focus their attention more on providing better services

to their customers

There is too much document process which makes it for investors; assistance

should be provided regarding this.

Reliance security must take necessary measure to promote their products and

schemes so that customers are aware about latest scheme and product of

Reliance security.


56/60


Conclusion and recommendation

Reliance security needs to improve in area of comments/quotes as its major

competitors are very strong in this area.

Reliance security needs to enter the non business newspaper segments to reach

out to the general service.

Allocation of news in such a way that Reliance security maintains a

consistency level throughout the month.

In case of transparency and service Reliance security is consider good and

average in case of brokerage and relationship managers support.

India infoline has increased its media of share from 9% to 24% in the past two

month; this will prove to be major threats for Reliance security.


57/60


ANNEXURE


58/60


Reliance survey form

Questionnaire

Name_____________ Contact Number_____________

Email-id___________ Location___________________

1.Do you invest your money?

(a) Yes (b) No

2. In which tool you mostly park your money?

(a) Life Insurance (b) P Health Insurance (c) Bonds (d) other-------------

3.Are you interested investing your money in securities?

(a) Yes (b) No

4. If yes, in which market you prefer to Invest?

(a) Primary Market (b) Secondary market

5. How frequently you Invest in primary market?

(a) Monthly (b) Quarterly (c ) Half yearly (d) yearly

6. What factors influence you to invest in primary market?

(a) Bank Saving (b) Mutual Fund (c) Real Estate (d) stock market (e) other


59/60


7. In which company share have you invested recently in primary market?

(a) Rel securities (b) ICICI Direct(c) HDFC securities (d) other-------------


(a) Yes (b) No

9. Given the fluctuation of any investment of any investment portfolio, how

long would you be willing to wait your investment to regain any lost value?

(a) Less than 3 month (b) 3 to 6 month (c) six month to1year(d) 1-2 year


(a) Yes (b) No


60/60

Bibliography

Reference books:1. Bhole, L.M and Mahakud, Jitendra (2004), Financial Institutions and Market,

Tata McGraw-Hill Education Private Limited, India, 5th

Edition 2009

2. Bhalla ,V.K. investment Management (1982). S.CHAND & Company LTD,

New Delhi. 14th Edition 2008.

Websites:

3. Retrieved on 12 july 2013 at 2129 hrs from www.Investopedia.com

4. Retrieved on 12 july 2013 at 2234 hrs from www.powerindiabulls.com

5. Retrieved on 13 july 2013 at 1005 hrs from www.moneycontrol.com

6. Retrieved on 13 july 2013 at 1035 hrs from www.equitymarket.com

7. Retrieved on 14july 2013 at 1634 hrs from www.demat.com

8. Retrieved on 14july 2013 at 1700 hrs fromwww.rsec.co.in.

9. Retrieved on 24 july 2013 at 2240 hrs from

http://220.226.199.146/aboutus.aspxhttp://www.indiainfoline.com/Markets/Company/

Background/Company-Profile/Reliance-Capital-Ltd/500111
http://www.demat.com/http://www.demat.com/http://www.rsec.co.in/http://www.rsec.co.in/http://www.rsec.co.in/http://220.226.199.146/aboutus.aspxhttp://www.indiainfoline.com/Markets/Company/Background/Company-Profile/Reliance-Capital-Ltd/500111http://www.indiainfoline.com/Markets/Company/Background/Company-Profile/Reliance-Capital-Ltd/500111http://www.indiainfoline.com/Markets/Company/Background/Company-Profile/Reliance-Capital-Ltd/500111http://220.226.199.146/aboutus.aspxhttp://220.226.199.146/aboutus.aspxhttp://www.rsec.co.in/http://www.demat.com/

Documents

Market Research on Investor Attitude Towards Primary Market