Contents

I. Preface.. 2 II. Acknowledgement III. Executive Summary.. 4 Industry Profile... 6 1.1 Indian capital market-an Overview... 7 1.2 Indian Stock Exchanges 9 1.3 Over the counter Exchange of India (OTCEI)..... 12 1.4 Indian Financial Sector 16 1.5 Market Players in Broking Industry. 23 2. 2.1 2.2 3. 3.1 3.2 3.3 3.4 3.5 3.6 3.7 Company Profile 35 Introduction of Reliance enterprise..36 About reliance money.. 41 Research Methodology.. 43 Statement of Problem... 44 Research Objectives 44 Scope of Research... 44 Data Sources. 45 Utility of the Study....... 45 Information about Stock Brokers 46 Limitation of Study 61

4. Finding & Suggestion.. 61 5. Conclusion 62 6. Bibliography.. 63

CH: 1 INDUSTY PROFILE

2

INDIAN CAPITAL MARKET: AN OVERVIEW

Evolution of Indian Capital Market

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meager and obscure. The East India Company was the dominant institution in those days and business in its loan securities used to be transacted towards the close of the eighteenth century. By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers recognized by banks and merchants during 1840 and 1850. The 1850's witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased into 60. In 1860-61 the American Civil War broke out and cotton supply from United States of Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump began (for example, Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs. 87). At the end of the American Civil War, the brokers who thrived out of Civil War in 1874 found a place in a street (now appropriately called as Dalal Street) where they would conveniently assemble and transact business. In 1887, they formally established in Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively known as The Stock Exchange "). In 1895, the Stock Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated.

Other leading cities in stock market operations

Ahmedabad gained importance next to Bombay with respect to cotton textile industry. After 1880, many mills originated from Ahmedabad and rapidly forged ahead. As new mills were floated, the need for a Stock Exchange at Ahmedabad was realized and in 1894 the brokers formed "The Ahmedabad Share and Stock Brokers' Association". What the cotton textile industry was to Bombay and Ahmedabad, the jute industry was to Calcutta. Also tea and coal industries were the other major industrial groups in Calcutta. After the Share Mania in 1861-65, in the 1870's there was a sharp boom in jute shares, which was followed by a boom in tea shares in the 1880's and 1890's; and a coal boom between 1904 and 1908. On June 1908, some leading brokers formed "The Calcutta Stock Exchange Association". In the beginning of the twentieth century, the industrial revolution was on the way in India with the Swadeshi Movement; and with the inauguration of the Tata Iron and Steel Company Limited in 1907, an important stage in industrial advancement under Indian enterprise was reached. Indian cotton and jute textiles, steel, sugar, paper and flourmills and all companies generally enjoyed phenomenal prosperity, due to the First World War. In 1920, the then demure city of Madras had the maiden thrill of a stock exchange functioning in its midst, under the name and style of "The Madras Stock Exchange" with 100 members. However, when boom faded, the number of members stood reduced from 100 to 3, by 1923, and so it went out of existence. In 1935, the stock market activity improved, especially in South India where there was a rapid increase in the number of textile mills and many plantation companies were floated. In 1937, a stock exchange was once again organized in Madras - Madras Stock Exchange Association (Pvt) Limited. (In 1957 the name was changed to Madras Stock Exchange Limited).

Lahore Stock Exchange was formed in 1934 and it had a brief life. It was merged with the Punjab Stock Exchange Limited, which was incorporated in 1936.

Indian Stock Exchanges - An Umbrella Growth

The Second World War broke out in 1939. It gave a sharp boom, which was followed by a slump. But, in 1943, the situation changed radically, when India was fully mobilized as a supply base. On account of the restrictive controls on cotton, bullion, seeds and other commodities, those dealing in them found in the stock market as the only outlet for their activities. They were anxious to join the trade and numerous others swelled their number. Many new associations were constituted for the purpose and Stock Exchanges in all parts of the country were floated. The Uttar Pradesh Stock Exchange Limited (1940), Nagpur Stock Exchange Limited (1940) and Hyderabad Stock Exchange Limited (1944) were incorporated. In Delhi two stock exchanges - Delhi Stock and Share Brokers' Association Limited and the Delhi Stocks and Shares Exchange Limited - were floated and later in June 1947, amalgamated into the Delhi Stock Exchange Association Limited.

Post-independence Scenario
Most of the exchanges suffered almost a total eclipse during depression. Lahore Exchange was closed during partition of the country and later migrated to Delhi and merged with Delhi Stock Exchange.

Bangalore Stock Exchange Limited was registered in 1957 and recognized in 1963. Most of the other exchanges languished till 1957 when they applied to the Central Government for recognition under the Securities Contracts (Regulation) Act, 1956. Only Bombay, Calcutta, Madras, Ahmedabad, Delhi, Hyderabad and Indore, the well-established exchanges, were recognized under the Act. Some of the members of the other Associations were required to be admitted by the recognized stock exchanges on a concessional basis, but acting on the principle of unitary control, all these pseudo stock exchanges were refused recognition by the Government of India and they thereupon ceased to function. Thus, during early sixties there were eight recognized stock exchanges in India (mentioned above). The number virtually remained unchanged, for nearly two decades. During eighties, however, many stock exchanges were established: Cochin Stock Exchange (1980), Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982), and Pune Stock Exchange Limited (1982), Ludhiana Stock Exchange Association Limited (1983), Gauhati Stock Exchange Limited (1984), Kanara Stock Exchange Limited (at Mangalore, 1985), Magadh Stock Exchange Association (at Patna, 1986), Jaipur Stock Exchange Limited (1989), Bhubaneswar Stock Exchange Association Limited (1989), Saurashtra Kutch Stock Exchange Limited (at Rajkot, 1989), Vadodara Stock Exchange Limited (at Baroda, 1990) and recently established exchanges Coimbatore and Meerut. Thus, at present, there are totally twenty-one recognized stock exchanges in India excluding the Over The Counter Exchange of India Limited (OTCEI) and the National Stock Exchange of India Limited (NSEIL).

The Table given below portrays the overall growth pattern of Indian stock markets since independence. It is quite evident from the Table that Indian stock markets have not only grown just in number of exchanges, but also in number of listed companies and in capital of listed companies. The remarkable growth after 1985 can be clearly seen from the Table, and this was due to the favoring government policies towards security market industry.

Growth Pattern of the Indian Stock Market

Sl.No. 2 3 4 5 6 As on 31st 1946 1961 1971 1975 1980 1985 1991 1995 December No. of 1125 1203 1599 1552 2265 4344 6229 8593 Listed Cos. No. of Stock Issues of 1506 2111 2838 3230 3697 6174 8967 11784 Listed Cos. Capital of Listed 270 753 1812 2614 3973 9723 32041 59583 Cos. (Cr. Rs.) Market value of Capital of Listed 971 1292 2675 3273 6750 25302 110279 478121 Cos. (Cr. Rs.) Capital per Listed Cos. (4/2) 24 63 113 168 175 224 514 693 (Lakh Rs.) Market Value of Capital per Listed 86 107 167 211 298 582 1770 5564 Cos. (Lakh Rs.) (5/2) Appreciated value of Capital per 358 170 148 126 170 260 344 803 Listed Cos. (Lakh Rs.)

Source: Various issues of the Stock Exchange Official Directory, Vol.2 (9) (iii), Bombay Stock Exchange, Bombay.

Trading Pattern of the Indian Stock Market

Trading in Indian stock exchanges is limited to listed securities of public limited companies. They are broadly divided into two categories, namely, specified securities (forward list) and non-specified securities (cash list). Equity shares of dividend paying, growth-oriented companies with a paid-up capital of at least Rs.50 million and a market capitalization of at least Rs.100 million and having more than 20,000 shareholders are, normally, put in the specified group and the balance in non-specified group. Two types of transactions can be carried out on the Indian stock exchanges: (a) spot delivery transactions "for delivery and payment within the time or on the date stipulated

when entering into the contract which shall not be more than 14 days following the date of the contract: and (b) forward transactions "delivery and payment can be extended by further period of 14 days each so that the overall period does not exceed 90 days from the date of the contract". The latter is permitted only in the case of specified shares. The brokers who carry over the outstanding pay carry over charges (cantango or backwardation) which are usually determined by the rates of interest prevailing. A member broker in an Indian stock exchange can act as an agent, buy and sell securities for his clients on a commission basis and also can act as a trader or dealer as a principal, buy and sell securities on his own account and risk, in contrast with the practice prevailing on New York and London Stock Exchanges, where a member can act as a jobber or a broker only. The nature of trading on Indian Stock Exchanges are that of age old conventional style of face-to-face trading with bids and offers being made by open outcry. However, there is a great amount of effort to modernize the Indian stock exchanges in the very recent times.

Over The Counter Exchange of India (OTCEI)

The traditional trading mechanism prevailed in the Indian stock markets gave way to many functional inefficiencies, such as, absence of liquidity, lack of transparency, unduly long settlement periods and benami transactions, which affected the small investors to a great extent. To provide improved services to investors, the country's first ringless, scripless, electronic stock exchange - OTCEI - was created in 1992 by country's premier financial institutions - Unit Trust of India, Industrial Credit and Investment Corporation of India, Industrial Development Bank of India, SBI Capital Markets, Industrial Finance Corporation of India, General Insurance Corporation and its subsidiaries and CanBank Financial Services. Trading at OTCEI is done over the centres spread across the country. Securities traded on the OTCEI are classified into:

Listed Securities - The shares and debentures of the companies listed on the OTC can be bought or sold at any OTC counter all over the country and they should not be listed anywhere else

Permitted Securities - Certain shares and debentures listed on other exchanges and units of mutual funds are allowed to be traded

Initiated debentures - Any equity holding at least one lakh debentures of a particular scrip can offer them for trading on the OTC.

OTC has a unique feature of trading compared to other traditional exchanges. That is, certificates of listed securities and initiated debentures are not traded at OTC. The original certificate will be safely with the custodian. But, a counter receipt is generated out at the counter which substitutes the share certificate and is used for all transactions. In the case of permitted securities, the system is similar to a traditional stock exchange. The difference is that the delivery and payment procedure will be completed within 14 days. Compared to the traditional Exchanges, OTC Exchange network has the following advantages: OTCEI has widely dispersed trading mechanism across the country which provides greater liquidity and lesser risk of intermediary charges. Greater transparency and accuracy of prices is obtained due to the screenbased scripless trading. Since the exact price of the transaction is shown on the computer screen, the investor gets to know the exact price at which s/he is trading. Faster settlement and transfer process compared to other exchanges. In the case of an OTC issue (new issue), the allotment procedure is completed in a month and trading commences after a month of the issue closure, whereas

it takes a longer period for the same with respect to other exchanges. Thus, with the superior trading mechanism coupled with information transparency investors are gradually becoming aware of the manifold advantages of the OTCEI.

National Stock Exchange (NSE)

With the liberalization of the Indian economy, it was found inevitable to lift the Indian stock market trading system on par with the international standards. On the basis of the recommendations of high powered Pherwani Committee, the National Stock Exchange was incorporated in 1992 by Industrial Development Bank of India, Industrial Credit and Investment Corporation of India, Industrial Finance Corporation of India, all Insurance Corporations, selected commercial banks and others. Trading at NSE can be classified under two broad categories: (a) Wholesale debt market and (b) Capital market. Wholesale debt market operations are similar to money market operations - institutions and corporate bodies enter into high value transactions in financial instruments such as government securities, treasury bills, public sector unit bonds, commercial paper, certificate of deposit, etc. There are two kinds of players in NSE: (a) Trading members and (b) Participants. Recognized members of NSE are called trading members who trade on behalf of themselves and their clients. Participants include trading members and large players like banks who take direct settlement responsibility.

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Trading at NSE takes place through a fully automated screen-based trading mechanism, which adopts the principle of an order-driven market. Trading members can stay at their offices and execute the trading, since they are linked through a communication network. The prices at which the buyer and seller are willing to transact will appear on the screen. When the prices match the transaction will be completed and a confirmation slip will be printed at the office of the trading member. NSE has several advantages over the traditional trading exchanges. They are as follows:

NSE brings an integrated stock market trading network across the nation. Investors can trade at the same price from anywhere in the country since intermarket operations are streamlined coupled with the countrywide access to the securities.

Delays in communication, late payments and the malpractices prevailing in the traditional trading mechanism can be done away with greater operational efficiency and informational transparency in the stock market operations, with the support of total computerized network.

Unless stock markets provide professionalised service, small investors and foreign investors will not be interested in capital market operations. And capital market being one of the major sources of long-term finance for industrial projects, India cannot afford to damage the capital market path. In this regard NSE gains vital importance in the Indian capital market system. After adjustments for purchasing power parity, Indias economy is the fourth largest in the world in terms of Gross Domestic Product (GDP). An efficient securities market provides the necessary channel for flow of resources from the providers of capital to the users of capital for economic development. The overall growth of the economy and economic activity are also important factors, which determine

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availability of resources. The following table illustrates India's GDP growth between 2004 and 2007.

Indian Financial Sector

The Indian financial services industry has experienced significant growth in the last few years. There has been a Considerable broadening and deepening of the Indian financial markets due to various financial market reforms undertaken by the Indian regulators, the introduction of innovative financial instruments in recent years and the entry of sophisticated domestic and international financial services participants. Sectors such as banking, asset management and brokerage have been liberalised to allow private sector involvement, which has contributed to the development and modernisation of the financial services sector. This is particularly evident in the nonbanking financial services sector, such as brokerage, residential mortgage and insurance services, where new products and expanding delivery channels have helped these sectors to achieve high growth rates recently. Financial services accounted for approximately 14% of total GDP in fiscal 2007. The combined average daily turnover of the BSE and the NSE for different market segments has increased from approximately Rs. 4.8 billion in March 1996 to approximately Rs. 312.1 billion in March 2006. Over this period, there has also been a substantial growth in the market for other financial products such as insurance, and mutual funds.

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Regulatory Developments
AT The following are certain regulatory developments in the Indian financial sector since India's economic reforms.

Securities and Exchange Board of India (SEBI) Act, 1992

As part of the reforms process, the Capital Issues (Control) Act, 1947 was repealed in 1992 and replaced by the SEBI Act, 1992, paving the way for market-determined allocation of resources. Under the SEBI Act, 1992, issuers complying with eligibility criteria are allowed the freedom to issue securities market-determined rates. SEBI exercises control over the market through the issuance of guidelines and rules for various capital market activities and of regulations for intermediaries and stock exchanges. The SEBI Act established SEBI with the primary objective of protecting the interests of investors in securities. SEBI requires critical data regarding all relevant market participants to be disclosed on specified forms. The Investor Education and Protection Fund was established for the promotion of awareness among investors and protection of investor interests. The Department of Economic Affairs, Department of Company Affairs, SEBI and the stock exchanges have set up an investor grievance division for redressing investor grievances. The exchanges also maintain investor protection funds to satisfy certain investor claims.

Screen Based Trading

Trading on stock exchanges in India used to take place through an open outcry system without use of information technology for immediate matching or recording of trades. In order to provide efficiency, liquidity and transparency, in 1996 the NSE and the BSE introduced a nationwide, on-line and fully-automated screen based

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trading system. Introduction of these trading systems has been one of the key developments in the Indian capital market.

Trading Cycle
In the early 1990s, trades were accumulated over a trading cycle and at the end of the cycle, trades were netted out and followed by payment of cash and delivery of securities in order to settle the balance. This trading cycle varied from 14 days for specified securities to 30 days for others and settlement took another fortnight. In order to reduce large open positions, the trading cycle was reduced to a week. The stock exchanges, however, continued to have different weekly trading cycles, which enabled shifting of positions from one exchange to another. Rolling settlement on a T+5 basis was introduced in 1996 and as a result, for specified scrips, the trading cycle was reduced to one day. It was made mandatory for all stock exchanges to follow a uniform weekly trading cycle in respect of scrips not under rolling settlement. All scrips were moved to the rolling settlement in December 2001. The settlement period has been reduced progressively from T+5 to T+3 days to the current T+2 day settlement cycle.

Derivatives Trading
To assist market participants in managing risks better than through hedging and arbitrage, the Securities Contracts (Regulation) Act, 1956 (SCRA) was amended in 1995 to lift the ban on options in securities. The SCRA was amended further in December 1999 to expand the definition of securities to include derivatives so that the whole regulatory framework governing trading of securities could apply to trading of derivatives as well.

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In the meantime exchanges developed infrastructure and the information systems required to implement trading discipline in derivative instruments. Derivative trading commenced in June 2000 on the NSE and the BSE. The market presently offers index futures and index options on three indices and stock options and stock futures on individual stocks (presently 187 stocks on the NSE as of June 2007) and futures in interest rate products like notional 91-day T-bills and notional 10-year bonds. Demutualisation (Segregation of ownership from management) Historically, brokers owned, controlled and managed stock exchanges in India. The Government proposed in March 2001 to corporatise the stock exchanges and thereby segregate ownership, management and trading membership. A few stock exchanges have already initiated the demutualisation process. The Government has offered a variety of tax incentives to facilitate corporatisation and demutualisation of stock exchanges. The NSE has adopted a demutualised governance structure where ownership, management and trading are separated to help reduce conflicts of interest. The BSE also recently has completed demutualisation.

Depositories Act
The settlement system on Indian stock exchanges gave rise to settlement risk due to the lapse of time before trades were settled. The historical process of physically moving securities among different parties took time with the risk of delay along the chain. A significant proportion of transactions ended up as bad deliveries due to noncompliance with paperwork. This added to costs, restricted liquidity and made investor grievance redressal time consuming and at times intractable. To obviate these problems, the Depositories Act, 1996 was passed. As of mid-June, 2007, more than 6,670 companies were connected to NSDL and 5,660 to CDSL. All actively traded scrips are 15

now held, traded and settled in uncertificated form. Uncertificated settlement (known in India as Dematerialised Settlement) accounts for over 99% of turnover settled by delivery. This has substantially eliminated bad deliveries and associated settlement problems. To prevent physical certificates from coming into circulation, it has been made mandatory for all new public offerings to be traded in uncertificated form. The admission to a depository for holding securities in uncertificated form has been made a prerequisite for making a public offering, rights issue or an offer for sale.

Indian Capital Markets

There were 1,228 companies listed on the National Stock Exchange and 4,821 companies listed on the Bombay Stock Exchange as of March 31, 2007. In recent years, the capital markets have undergone substantial reforms in regulation and supervision. Reforms, particularly the establishment of SEBI, market-determined prices and allocation of resources, screen-based nation-wide trading, T+2 settlement, scripless settlement and electronic transfer of securities, rolling settlement and derivatives trading have greatly improved both the regulatory framework and efficiency of trading and settlement. There presently are 22 recognized stock exchanges in India, as well as the over-thecounter Exchange of India (OTCEI) for small and new companies and the NSE, which was set up as a model exchange to provide nationwide services to investors. In 2003, the NCDEX and the MCX were set up for trading of futures in various commodities.

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Primary Equity Market

The primary segment of the capital markets in India has been witnessing a surge in activity driven by the strong fundamentals of the Indian economy, improved corporate results, a buoyant secondary market, structural reforms by the Government and an investor-friendly framework. and retail investors. .

Secondary Equity Market

The Indian equity markets have been witnessing strong growth since 2003 with the benchmark BSE Sensex crossing the 14,500 mark in February 2007 from 6,600 in January 2005 and 5,200 in September 2005 The average daily turnover at the NSE and for different market segments has increased from approximately Rs. 68 billion in 2001 to approximately Rs. 382 billion in March 2007. Over this period, there also has been a substantial growth in the market for other financial products, such as insurance and mutual funds.

Equity Brokerage
The evolution of the Indian capital markets has stimulated rapid consolidation due to increased trading volumes, increased regulation, customer sophistication, better technology and increased back-office requirements. As a result, significant changes have been introduced to strengthen risk management systems. Changes in the regulatory framework and settlement mechanics have resulted in the smaller operating participants losing their market share, leading to a consolidation in the industry. The market share of the top five brokers on the NSE has increased from 12% in Fiscal 2004 to approximately 15% in March 2007. The market share of the top ten brokers on the NSE has grown from

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approximately 17% in Fiscal 2004 to 24% in March 2007, and the share of the top 25 brokers on the NSE has grown from 30% in Fiscal 2004 to 43% in March 2007. These figures indicate a long-term consolidation process in a highly fragmented securities brokerage industry, with numerous smaller participants exiting the market and larger brokers gaining market share. Market consolidation is even more pronounced in the on-line trading category where the top five brokers control almost the entire market. The rapid growth in on-line trading volumes can be attributed to growing sophistication of retail investors, availability of reliable Internet connectivity and sophistication of Internet-based trading products. The following table illustrates the trading volume on the NSE and the percentage traded by the top brokers from 2003.

Internet Trading
At the end of March 2006, 142 members on the Capital Market segment and 127 on the Futures and Options Segments were permitted to allow investors web-based access to the NSEs trading system. The members of the Exchange in turn had registered 1,443,291 clients for web-based access as of March 31, 2006. In the NSE Capital Market segment in Fiscal 2006, approximately Rs. 183 billion, constituting 11.68% of total trading volume, were routed and executed through the Internet. The following table gives the growth of Internet trading.

Mutual Funds
As of March 31, 2007, there were 756 mutual funds in India with total assets under management of Rs. 2,544 billion. From 1963 to 1987, Unit 18

Trust of India was the only mutual fund operating in the country. It was set up in 1963 at the initiative of the government and the RBI. From 1987, several other public sector mutual funds entered this sector. These mutual funds were established by public sector banks, the Life Insurance Corporation of India and the General Insurance Corporation of India. The mutual funds industry was opened up to the private sector in 1993. The industry is regulated by the SEBI (Mutual Fund) Regulation, 1996. The mutual fund industry has also experienced considerable activity over last few years with total assets under management growing from Rs. 1,396 billion as of March 31, 2004 to Rs. 3,263 billion as of March 31, 2007. In recent years, the industry has witnessed consolidation in favour of private sector mutual funds whose assets under management have grown from Rs. 1,049 billion as of March 31, 2004 to Rs. 2,567 billion as of March 31, 2007. Most of the funds that dominate the sector are open-ended funds. The mutual fund sector can broadly be divided based on the nature of the schemes launched by the mutual funds. The fixed income asset class, which comprises income, liquid, gilt and money market schemes, comprises a major share of total funds under management. The other two asset classes are equity and balanced schemes, which have experienced significant growth recently on account of the robust stock market.

Insurance Sector
The insurance market was opened to the private sector in 2001. Since then, various foreign and Indian private sector participants have targeted market potential by providing a range of customized products. Major foreign insurance companies such as New York Life,

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Aviva, Tokio Marine, Allianz, Standard Life, Lombard General, AIG, AMP and Sun Life, among others, have announced joint ventures in both life and non-life insurance areas. As a result of the increased competition, state sector companies have become more aggressive in their product offerings, marketing strategies and distribution channels. According to the Insurance Regulatory Development Authority, the life insurance market has grown by 120% in the period from April 1, 2006 to February 28, 2007. The general insurance market has grown by 23.7% during the same period.

Investment Banking
With the Indian economy maturing, Indian companies are also evaluating different means to raise capital in the equity and debt capital markets. The volume of activity in equity capital markets as well as the transaction advisory market have increased significantly. With the increase in activity levels and entry of foreign investment banks in India, competition is intensifying. However, there is a large number of small and mid-sized companies, which is increasing the market size of investment banking activities.

Transaction Advisory
There has been a significant increase in the merger and acquisition activities by Indian companies in recent years. This continuing increase is evident in the inbound, outbound and domestic segments.

Equity Capital Markets

With the growth in various sectors of the Indian economy, Indian companies have been increasingly raising funds in both domestic and international equity capital market. The following chart indicates the total volume of transaction advisory and equity activity in India for last three years:

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Industry Outlook
Existing low penetration levels, increasing affordability of credit and rising income levels have led to a growing demand for retail financial products. India has a substantial retail investor base throughout the country that has a large pool of untapped surplus funds. The market confidence of small investors has increased with growing levels of education and financial awareness, and the strengthening of regulatory systems. The financial services Industry is undergoing consolidation. In the future, it is expected that market share will be captured by financial services providers who can offer a complete range of financial products and services. Companies in the broking industry
Dan Technologies, Delhi Offering services such as security consulting services, security implementation services, security engineering services, safety consulting services, access control services and intrusion detection services.

Exponential Commodity Services Private Limited

Leading financial management and broking houses engaged in stocks, derivatives and commodities trading on the major capital market exchanges in india like NSE/ BSE and commodities exchanges, NCDEX (National Commodities and Derivatives Exchange). Appuonline Consultancy Services Pvt. Ltd. Share Broking, Mutual Fund Distribution Pioneer Investment Consultancy Provides services of stock exchange, empanelled brokers, mutual funds, secondary market debt papers, physical/demat listed/delisted shares of indian companies. Fundquest Consulting Offering services like working capital funding services, private equity services, venture capital services, bridge capital services and foreign direct investment services. Vittam Advisors Private Limited

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Providing all kinds of equity share services, mutual funds services, commodity futures services etc. Bharti Fexp Providing equity anaysis services, commodity analsis services, sub broker services, fund manager services etc.

Niki Impex Providing share tips, commodity tips, investment recommendations etc. service for Indian share. Diginet Software Providing all kinds of stock exchange. Rajive & Co Commodity brokers of sugar. Stock Onlinee Providing all kinds of stock broking services. Navnitjoshi Securities Providing all kinds of trading in equity, share investments, mutual funds etc. Apex Recruitment & Management Consultants Offering services of stock market. 1st Financial & Management Services Providing all kinds of stock market services, mutual funds services etc. Securities Trading Corporation India Limited Underwriters of government securities and bonds, treasury bills, PSU bonds, short term investments and call money, issued by public sector undertakings. Hira Stocks Solution Private Limited Providing all types of equity investment advisor, equity shares consultants etc. Aadvance Solutions Providing all kinds of equity services, commodity services, forex services, mutual fund services, Ipo services etc. Navkar Equity Solutions Private Limited Providing share brokers services. Gupta Promoters Involved in offering brokerage services. Sugal & Damani Lottery Agency Private Limited

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Offering consulting services such as stock broking services.

Vasanti Share Brokers Limited Providing services of bse stock market broker, nse stock market broker, mcx stock market broker, best indian stock broker, top indian stock market broker etc. B. L. B. Limited Providing all kinds of share broking services. Agrawal Invesment Consultants Engaged in providing services like mutual fund investment services and share trading services. Vigilant Technologies Manufacaturers and exporters of cctv, remote survillance, guard monitoring system, access control system, lpg gas leak detector and burglar alarm etc Sun Securities Providing all kinds of mutual funds, sbi mutual funds, hdfc mutual funds, birla sun life mutual funds, franklin templeton mutual funds, reliance mutual funds, fidelity mutual funds etc. Navia Markets Limited Provides all types of mutual funds service, equity trading service, online nri trading service etc. One Source Financial Services Offering mutual funds services and equity trading services. Xpertz Broking Private Limited Providing all kinds of mutual funds, govt securities, bonds, ipos, share trading etc. Bonanza Portfolio Engaged in providing share trading services. aypee Capital Services Limited Provides trading, research, advisory services for shares. Ace Tech Agencies Providing services of commission agents. SDPL Provides services as investment consultants. Tata Share Registry Limited Providing share registry services. Refco Provides share brokerage services.

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 B. N. R. Capital Services Private Limited Engaged in providing services of stock broker services and share broker services. Prudential Capital Investments Providing share brokerage services. Jm Morgan Stanley Fixed Income Securities Private Limited Offering broker services, w t broker services and stock brokers services. T. M. P. International Traders Involved in offering share commodities services and capital market services Agroy Finance & Investment Limited Providing stock broking, investment banking, accounts, audit and taxation services. Rachana Investment & Finance Providing services of share stock brokers and financial consultants. Metal Wood Systems Providing share related services. Refco Commodities India Private Limited Providing services like advisory and broking of commodity fixtures. Hi Gain Securities Providing services as stock brokers. Smc Global Securities Limited Dealers of share broking, mutual funds etc. El & En Education Trust Provides services through investments & small savings. Target Providing professional guidence as technical analyst for buying and selling shares listed on bombay stock exchange and national stock exchange. Investment Point Provides services in investment consultancy. S. P. K. International, Gurgaon International broker of coal, petroleum and steel. S. S. A. Financial Services Providing share related services. Aeonian Investment Company Limited Engaged in providing services of share consultant and investment in share.

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 Pelf Finestock Offering services like nse consultancy services, bse consultancy services and commodity consultancy services. Angel Broking Limited, Mumbai Providing services related to shares and stocks. V. S. Consultants, Mumbai Indian stock consultants with advise on investments on Indian bourses Zen Capital Holdings Providing services of finance against shares of bse/nse listed companies. Tachukdi Provides broker services. Commodities Power Providing all kinds of stocks services. Association Of NSE Member Of India Dealing into NSE stock and brokers. Capital Via International Services Providing services for stock exchange consultancy. Srisivan Foods India Private Limited Providing brokerages. Almonds Capital Market Private Limited Offering online share trading services and equity trading services. Legend Securities Limited Provides services as share broker. B. L. B. Limited, New Delhi Providing services related to sale purchase of shares. N. C. C. Telecom Private Limited Manufacturers of building automation system , video apartment and access system, building intercom and security system. Mata Securities India Pvt. Ltd. Indian debt broking house Vidkris Finserve Providing services for nse, bse, ncdex, mcx and consultancy in mutual funds. J. K. Consultancy Providing security consultancy services.

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 Refco-Sify Securities India Private Limited Providing stock broking services. Abhipra Capital Ltd. Provide services like online share trading, depository services, money changing services, legal consultancy, Brokering services with NSE, BSE, DSE etc. Market Creators Limited Providing stock broking services. Depe Global Shipping Agencies Private Limited Providing all types of services related to chartering brokers. Amit Nalin Securities Private Limited Provides services in stock broking. Kanha Fincap Private Limited Providing services related to shares and stocks brokers. Vruddhi Capitals & Commodities Providing services like online share trading and commodities trading. C. R. V. Consultants Providing stock market consultancy services. Pushp Consulting Providing advisory services for trading & investment of share and govt. securities. Dalmia Securities Ltd. Provide Services related to Stock - Brokers , Depository participant, Dematerialisation , NRI Investment in India, Shares & debentures & Bonds Aditya Consultant, Pune Offering stock market, commodity market, portfolio consultants, securities consultants etc. S. N. Dhawan & Company Providing stock and share brockers services. Geojit Securities Limited, Kochi Providing all types of stock and share broking services. Shekhar Resorts Providing services of security solutions for a five star hotel. Financial Consultants

Providing all kinds of share trading services, stock broking services etc. Investment Intermediates Limited Investment Intermediates Limited is a corporate member of mumbai stock exchange and

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national stock exchange. Rajpoot Securities Co. Providing security solutions. Sino Credits & Leasing Limited Provides stock and share brokers services. Commodity Consultants International, Mumbai Providing consultancy and broker services for steel, stainless steel, rice, sugar, spices and other commodities. Contemporary Targett Limited Provides brokers for tea and tea related products. Interem (india) Private Limited Providing Services of broker.

G. K. Shares And Stocks Providing services as a intermediary. IIT Investrust Limited Provides services of stock broking house Jpr Agencies Private Limited Providing services of broker services.

Motilal Oswal Commodities Brokers Private Limited Providing stock and commodity brokers services. Bijoy Kumar Gupta Offering consulting services such as brokers, comission agent and intermediary service. Bhartiya Gurukul Private Limited Providing consultancy services for stock marketing services and stock broking services. J.Thomas & Company Private Limited Provides brokers for tea. Force Tech Security India Private Limited Sathi Share Provide security consultancy services. Engaged in providing stock trading services. Arthi Consultants Private Limited Offering services such as share registrars services and transfer agents services. SR Khandelwal & Co. We offers share broker. Vimal Consultant Providing shares brokerage services. Aan Consultants

27

Providing secondary market in equities in stock exchange services.

 Aplomb Corporation Providing security services. Shares & Commodities Providing services of brokers of shares and commodities in NSE, BSE, MCX, NCDEX. Equity Analysis, Inc. Providing all kinds of stock investment services, stock analysis services, portfolio service services, online help services etc. Source One Offering consultancy for equities trading services. Bazaar Buzz Trading in stock market.

FFE Minerals India Ltd., Chennai Offers broker service and commissioning service. Doon Stock Brokers Private Limited Providing services related to shares, stock brokers and depository services. Sai Nath Investments Providing services related to shares and stocks brokers. Provides stock broking services, securities dealing, advisory services etc. S. S. M. Comex Deals in multi commodity exchange.

28

 Security Concepts Provides security consultacy services. Shri Avs Holdings Providing all kinds of online share trading services. Lion Financial Services Providing all kinds of stock broking services. Commodities Broking Company Providing consultancy services for share broking and share commodities. Globe Detective Agency Private Limited, Delhi Provides security consultancy services.

Lahiri Online Providing services related to technical analysis on indian share market based on proven and most reliable softwares of international acclaim. Rajrani acts as stock lot broker Infokush Dealing in software relating stockmarket Orphan Group Of Industries Providing all kinds of shares, mutual fund etc. Netgains Technologies Providing services like stocks online for stock brokers and depository participants.

29

 J. V. Capital Services Providing stockbrokers services, specialising in domestic and international arbitrage and catering to nri investments. Soham Sharma Providing consultancy services for share investment, loans and speculation services. Also provide services in the field of family, politics, property, investments, career, vaastu shastra, property investments, marriage life, traveling and speculation. Gupta Commodities Private Limited Providing commodities broking service, share broking service, stocks broking service etc. G. C. M. Securities Limited Providing services of online share trading with positive recomendation. ICICIGold.com Dealing into share and gold.

Coimbatore Stock Exchange Limited Provide stock exchange benefits. CCMS (P) Ltd Provide services of stock brokers and demat services. Krishna Share Astrology Consultant Provide brokrage services for shares. Anagram Stockbroking Limited, Pune Involved in offering share broking consultancy services, consultancy services and share negotiators consultancy services. Joy Shipping Servicespvt Limited Offer sevices like broker services.

Marshal Security Services Provides security services. Reliance Money Limited Providing share consultancy services. B. N. Rathi Securities Limited Provide services such as share brokers.

30

 I. C. L. Consultancy Services Private Limited Offering mutual fund investment services. Karthick Provide services such as shares. Cammron Security Systems Providing electronic security consultancy services. Aarnik Securities Offering share brokers and equity mutual funds brokers. Semri Capitals, Delhi Providing share consultancy services. Apollo Sindhoori Capital Investments Limited Providing online share trading services. Sourabh Gilts & Securities Limited Providing services like psu bonds, rbi bonds, capital gain bonds, public sector undertaking bonds, mutual funds and government securities. Shrisharepandit Consultants Private Limited Providing services related to share market. Pearl Shipping Agencies Provide Agency Services & Chartering Brokers. Adinath Capital Services Limited Provides share broker services. Kingdom Express Its an international trade agent, on commission basis. Our services are dealing in rice, refuse sacks, mosquito coil, construction machinery, furniture, marine products, iron ore, metal scraps. T. S. K. & Company Offering consulting services such as stock investing services. RBK Share Broking Limited Providing services of stock broking. Alankit Assignments Limited One of the national stock exchange member. Kakani Securities Private Limited Providing all types of securities services. A K Capital Services Limited

31

 Stock Brokers and member NSE & DSE. Growmore Securities Providing stock broking services. Global Detective Company Providing security consultant services. R.K.Global Shares & Securities Ltd. Offers share purchase and sale related services. Lyman Container Line Engaged in providing services like broker. Viratech Enterprises Pvt. Ltd. Provides services related to stock quotes for the Bombay, National & Calcutta Stock Exchanges for use in all popular Technical Analysis programmes

True value Securities & Fin Private Limited

Providing national stock exchange services. Jayacon International Provides broker services India Infoline Securities Private Providing stock broking, mutual funds, share trading and ipo's trading. FDI Project Management & Services Pvt.Ltd Approval for transfer of shares to NRI's and Foreign nationals Shreenathji Shares & Securities Providing all kinds of share trading services. Cargomar Private Limited Providing services related to customs broker. A. C. E. Security & Allied Services Providing various types of private security services. R. R. Equity Brokers Private Limited Offering services like equity consultants, share consultants and commodities consultants. India Bulls Providing stock broking services. Consultant Provides Services As a Investment Consultant. Brilliant Securities Limited

32

Provide services such as share brokers. Integrated Stock Broking Services Providing share broking services through membership in national stock exchange and share depository service through membership in national securities depositories limited. Kalia Pankaj & Associates Providing stock brokers services.

CH: 2 Company
Profile
33

Reliance Enterprise
The Reliance Anil Dhirubhai Ambani Group is among india`s top three private sector business houses on all major financial parameters, with a market capitalization of Rs 100,000 crore (US$ 22 billion), net assets in excess of Rs 31,500 crore ( US$ 7 billion), and net worth to the tune of Rs 27,500 crore (US$ 6 billion)

34

Across different companies, the group has a customer base of over 50 million, the largest in India, and a shareholder base of over 8 million, among the largest in the world. Through its products and services, the Reliance - ADA Group touches the life of 1 in 10 Indians every single day. It has a business presence that extends to over 4,500 towns and 300,000 villages in India, and 5 continents across the world. The interests of the Group range from communications (Reliance Communications) and financial services (Reliance Capital Ltd), to generation, transmission and distribution of power (Reliance Energy), infrastructure and entertainment.

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Our Founder

Think big, think fast, think ahead. Ideas are no ones monopoly
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Dhirubhai H. Ambani

Our Chairmans vision

We live in a world where the young are reaching higher, dreaming bigger and demanding more; a world that is challenging the limits of hope and possibility. Nowhere is this more strikingly visible than in India a country that wakes up every morning a little younger in age, but infinitely more ambitious in spirit.
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Anil D. Ambani

Our Mission

. is to attract, nurture & retain a team of competitive, growth oriented talent who : consistently deliver share-holder returns of 20%+ year-onyear Are responsive to Employee Needs & achieving an employee satisfaction index of 90%+ and are committed to making Reliance Capital among the top 3 Best Employers to work for in India
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through Transparent & Robust HR processes

Introduction to Reliance Money

Reliance Money provides investors with the facility of anytime-anywhere online trading in all major asset classes, n namely: E Equity I IPO M Mutual Funds C Commodities Forex

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 Network of kiosks have been set up across the country to facilitate the above trading activities Reliance Money provides entire commodity related services such as broking distribution and warehouse receipt financing Reliance Money is also into the distribution of financial products and Gold Coins Within two years of operations Reliance Money has spread across 80 locations with more than one thousand employees

About Reliance Money

Currently 1000+ employees across 75 locations spread across the country. The Corporate Office at Wadala, Mumbai has approx 250 people belonging to these various functions . Largest NBFC in India Among the Top 3 private sector companies in financial services sector
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 Zero debt company and no NPAs

CH: 3 Research
41

Methodology
I.
STATEMENT OF PROBLEM
The criteria and preferences considered the different stock brokers.

Research Objectives
There must an objective behind any research. Without objective there is no meaning of research. : The main objective of this research is to find the scope of the Demat & Trading Accounts of Reliance Money Limited. It will also measure the awareness of online trading in the market of Ahmedabad city. It aims at finding the consumers preference or criteria to select the share broking house for their investment. To know that how the variables such as company performances, services, different types of charges, the company profile, etc. affect the consumers choice of the Demat Account or trading account holdings

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SCOPE OF THE RESEARCH

Understanding various types of investment avenues available to mobilize the surplus funds. To study about various products and services offered by brokers to their clients and the charges for the same. To study about the various considerations, requirements (statutory or otherwise) of the brokers. To understand various services, facilities and offerings of brokers to their clints. To understand various success criterias of brokers having high turnover and good client base and analyze the key factors of their success.

DATA SOURCE Primary Sources

The data was collected through making personal visit at the regional head office of different brokers and asking them about various criterias taken into consideration. The data was collected on the basis of the list of brokers given by our project guide and the addresses of the brokers was collected thereof. The data regarding various charges was available from the back office of the brokers and certain statutory requirements such as documents for A/c opening etc being the same everywhere were given less preference for the purpose.

UTILITY OF THE STUDY

To Reliance Securities Limited:

The company will be able to know the various preferences, considerations, requirements as well as the offerings of various competitors in the market It will help in framing strategy, which is competitive enough to cover all the essential offerings of the competitors. 43

The company will be able to know the key factors which are responsible for the success of major market leaders in the broking industry.

Information about Stock Brokers

Reliance Money Limited
Features:

Cost-effective: Pay a flat fee of just Rs. 500/- valid for 2 months or specified
transactional value. Convenience: Go online, through your broker/agent, Call & Trade or Kiosk Security: Dynamic password - keeps the account extra secure Widest product range: Equity, Commodities, Derivatives, Offshore, Mutual Funds, IPOs, Insurance Other value-adds: Live news from Dow Jones, research, expert views, etc available free and in real time

Account opening fee & other charges: The initial account opening charges are Rs. 750/- which are lifetime account opening charges. These charges have been waived off for corporate clients. AMC charge of Rs. 50/- is applicable which is the lowest in the industry. For additional Rs. 500/- a client can trade in volumes upto Rs. 5 lakh with time validity of maximum 1 year. There is a Rs. 500/- waiver for general clients (individuals). Also certain prepaid coupon systems are provided which provide the customer different trading volume limits along with different time validity limits as suited to different clients as per their needs. These coupon systems have been mentioned below:-

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Brokerage Structure for Reliance Money

ONLINE BUY 1 paisa SELL 1 paisa Rs. 15 (D.P. charge)* BUY 1 paisa

OFFLINE SELL 1 paisa Rs. 15 (D.P. charge)# Rs. 15 (assistance Rs. 15 (assistance charge)** charge)*

he Rs. 15/- D.P. charges as shown above are flat per transaction per scrip per day irrespective of the volume of shares traded. The Rs. 15/- assistance charges are also flat irrespective of the volume of shares traded out of which Rs. 10/- is the commission the franchisee receives for the services offered by him and Rs. 5/- is what Reliance Money gets.

Additional Demat A/C details

Tie up with banks such as HDFC, IDBI, Axis Bank and ICICI Bank Intraday margin 5 times same day square off Delivery completely cash based

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Religare Enterprises Limited

The Company was incorporated as Vajreshwari Cosmetics Private Limited on January 30, 1984. The name Religare Enterprises Private Limited was kept on January 10, 2006 A/c opening charges o Trading: Nil o Demat:Rs.500 Demat A/c types o Bandhan :Rs.2100 one time and life time A.M.C. free o Rally-pro: Normal A/c having opening charge of Rs.500 and A.M.C. Rs.250 o Rally-lite:Broser based A/c available online Brokerage: o Intraday-5 paise o Delivery based-50 paise o F&O-10 paise o Trading in Z group shares is not allowed. o B.T.S.T. facility is available. o A.M.C.:Rs.250 o D.P.: N.S.D.L. and C.D.S.L. o Slip charges Rs.20

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Kotak Securities Limited

Trading A/c Opening charges-Rs.30 Brokerage: On Sales-0.4 No charge on purchase Slip charges-Rs.25 Online monitoring of demat A/c available Sms facility available Basically 2 departments: Back office: Demat A/c, Accounting Operations and Risk Management Front office: Sales and Dealers Trading Exposure:7 times I.T. and man-power are goodwill for the fir

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Angel Broking Limited

Established: about 10 yrs. Back Branches: about 80+ Trading in Equities, Commodities and Mutual Funds Security deposit Rs.100000 based on risk as per no. of clients(i.e. as the no. of clients increase the amount of deposit increases) B.T.S.T. facility allowed Brokerage: Delivery: 50 paise/100rs. Intraday: 5 paise/100rs. Buying & Selling

F&O: 10 paise/100rs.1 time charge o B.T.S.T. facility is allowed o Banking: H.D.F.C.,U.T.I., Citibank o D.P.-C.D.S.L. o Trading in Z group shares not allowed. o Franchisee is treated as remissor upto the time of getting sub-brokership registration o Delivery Instruction Slip charges: Rs.10/slip o Brokerage % sharing with franchisee is 50:50 on brokerage uptoRs.100000 and than 65:35 or even higher based on brokerage earned by franchisee.

Trading A/c opening charges Rs.100 Demat A/c opening charges A.M.C.:Rs.300 Stamp duty: Rs.100 Rs.500 (+service tax) Total

48

 based trading.

Auto pay-in: Rs.100 Inter Depository share transfer charges: Rs.15 for value of securities up to Rs.100000 0.2% increase on securities having value higher than Rs.100000 Online back-office available and online trading available for which Connectivity: Normally -VSAT For higher volume Lease line For lower volume- Internet Broadband S.m.s. facility and information available Trade Exposure: 5-10 times for Intraday and 3 times for delivery

sub-brokers are generally charged but clients are not charged.

India Bulls Limited

A/c opening charge: Rs.900 Brokerage: Delivery:25 paisa Intraday:5 paisa F&O: 3 paisa Trading Exposure: o Intraday: 20 times o Delivery: 4 times Why go for India bulls? o Off-line trading A/c they make immediate call to clients when clients miss call for putting trading limit

49

o Whenever the share prices fluctuate in the market creating a favorable situation for buyers for buying or selling a particular script, the clients are immediately informed about the same in order to take advantage of the favourable situation

o There is no organizational hierarchy in the firm and all the employees at the branch are relationship managers who have to directly report to the vice president of the co. The purpose behind this is to make direct interface between clients and employees possible

India Infoline Limited

A/c opening charges: Rs.555 Initial trade margin for clients:Rs.5000 Banking: ICICI,UTI, HDFC, Corporation Bank Brokerage: Offline-A/c o 0.1% Intraday o 0.5% delivery Online-A/c o 0.05% o 0.25% Extra Charges Applicable for NBFC (Special funded A/c are 250/yr.) U.S.P.:

o Special NBFC A/c which provide funding on the trade investment made upto75% on the investments made by the client

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Online Banking facility available

Share khan
Share khan is a very actively expanding out retail distribution network to reach out investors nationwide. Why go for share khan? Online terminal and internet trading Speed and flexibility Technology and marketing Research and equity sales support Marketing and branding Technology support and training Infrastructure: Minimum 500 sq.ft of office space Connectivity: C.T.C.L & VSAT Prosper infrastructure: La test P.C., U.P.S. Least 2 certified and trained dealer Least 5 sales excutives Operations : Billing- Centralized billing system where the end client will receive contract of share khan

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Certification: for D.P., Cash and F&O and commodity operation at your location you will have to produce the requisite NCFM certification as per the guideline of the regulator

Brokerage: o Initial-50:50 Online o At a gross brokerage of Rs.300000 per month-45:55 o At a gross brokerage of Rs.500000 per month-40:60 o Commodity-50:50 (Cash and Derivative ) Offline and

Trade margin: o Cash Market:Rs.250000 o Derivative Market:Rs.100000 o Power Broker:Rs.50000 o Commodities Market:Rs.100000

Anagram

NSE and F&O same id is provided and can be operated through one computer Separate Id and computer required for BSE Connectivity: Broad band, Lease line 10,000*2 DD pay at Bombay on name of SEBI (5year*2000=sub-broker fees) NSE and F&O (NCFM certificate required) For Online network charges are Rs.10, 000 to be paid in two installments. Documents required to start franchisee: o Pan card o Id and residential proof o Office address proof

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o Bank reference letter o CA reference letter or net worth certificate with CAs seal Brokerage:

o 0.02 to 0.05 brokerage on trading o 0.20 to 0.50 brokerage on delivery Registration done from exchange and the registration no. received from it. Personal attention in terms of training provided. Back office provided by main firm and available on net. No security deposit in the beginning if the firm is new, later main branch can charge as per the revenue generated by the firm.

HDFC Securities Limited

Demat and trading 2 in 1 online Charges 799(one time charges) Demat and trading offline charges:499 A.M.C. for demat a/c Rs.500+service tax Minimum balance in saving a/c Rs.5000 Documents: pan card, light bill, telephone bill, 2 photograph The minimum value of order that will be accepted is Rs.1000

Brokerage(Cash Segment) When the market price of the scrip is above Rs.10

Delivery Trades 0.5% of transaction value or Rs.15 per order whichever is higher Brokerage@Rs.0.05 per share or Rs.15 per order

Square off Trades 0.15% of transaction value or Rs15 per order whichever is higher Brokerage@Rs.0.05 per share or Rs.15 per order

Where the market price of the scrip is below Rs.10

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or actual brokerage slab i.e. 0.5% whichever is higher

or actual brokerage slab i.e. 0.15% whichever is higher

A/c opening charge for N.R.I. is Rs.1200 and minimum brokerage per trade is Rs.100 Share demat charges Rs.3 per certificate D.P.:NSDL

ICICI Securities Ltd.

ICICI Web Trade Limited (IWTL) maintains www.icicidirect.com (hereinafter referred to as the "Website") and owns, has the license to use or otherwise has the right to use, free of any pending or threatened liens, all content, graphics, HTML and CGI or other scripts displayed and used on the Website. Whereas IWTL is an Affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank Limited. This site gives the facility of 3-in-1 accounts. I.e. the 3-in-1 account integrates your banking, broking and demat accounts. This enables you to trade in shares without going through the hassles of tracking settlement cycles, writing cheques and Transfer Instructions, chasing your broker for cheques or Transfer Instructions etc.

Brokerage: o Intraday- 5paisa o Delivery- 75paisa

Demat a/c + trading a/c- Rs.750

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Comparative Chart
PRODUCTS & SERVICES OFFERED BY DIFFERENT BROKERS
Product s Offered Equity & Derivative s IPOs & MFs Commodit y Credit Cards & Gold Coins Loans LI & GI PMS & other benefits

Equity Houses

India Infoline Religare Reliance Money Angel Broking ICICI Direct Kotak Secu. HDFC Secu. Anagram Sharekhan

Yes Yes Yes Yes Yes Yes Yes Yes Yes

Yes Yes Yes Yes Yes Yes Yes Yes Yes

Yes Yes Yes Yes Yes Yes Yes Yes Yes

No No Yes No Yes Yes Yes No No

No No Yes No Yes Yes Yes No No

Yes Yes Yes Yes Yes Yes Yes Yes Yes

Yes Yes Yes Yes Yes Yes Yes Yes Yes

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Indiabulls

Yes

Yes

Yes

No

Yes

Yes

Yes

Interpretation:
All the broking houses offer almost all types of main products and services. They are providing Portfolio Management Services and other value-added benefits along with their basic offerings so that to cater more and more customers. Other than banks like ICICI, HDFC etc., Reliance Money is the only broker which provides credit cards and gold coins to the customers. It is also a distribution house where you can find products or services of various companies. Its concept is simple, All under one roof. Now, it is going to offer commodities also as one of its products as there is enough potential in the same. In todays scenario, each and every major broking house is trying to include almost all the products in its umbrella so that their customers have not to go at different places for their different financial needs.

BROKERAGE, AMC & OTHER CHARGES LEVIED BY DIFFERENT BROKERS

Charges Equity Houses India Infoline Religare Reliance Money Account Opening (Demat + trading) (Rs.) 555 500 750 (500 for corporate) 772 AMC ( Rs.) Nil Nil 50 Brokerage Intra-day Delivery (Paisa) (Paisa) 04 03 01 (online) & Rs. 15 (offline) per trade 03 40 30 Tie-up with Major banks

Angel Broking

300

01 (online) & Rs. 15 (offline) per trade 30 Icici, Hdfc, Axis

Icici, Hdfc, Axis Icici, Hdfc, Bob, Axis, Abn, Sbi Icici, Hdfc, Axis & Idbi

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ICICI Direct Kotak Secu. HDFC Secu. Anagram Sharekhan Indiabulls

750 750 799 550 Nil 900

500 250 500 200 275 Nil

05 04 04 05-10 10 03

75 40 40 50 50 30

Icici Kotak Hdfc Hdfc, Icici Icici, Hdfc, Axis

Interpretation
The charges for account opening and AMC are different at different broking houses but those who are keeping these very low or nil, are collecting the same in form of brokerage. Except reliance, all are charging brokerage on volume, which varies from 03 to 10 paisa (intra-day) and 30 to 70 paisa (delivery). But, the brokerage structure is flexible at most of the places. Reliance money is charging only 01 paisa per trade (online), regardless of volume which is very beneficial for big clients. It has introduced Voucher system for brokerage on account of its aggressive launching. ICICI Direct is very costly in terms of brokerage yet it is at no. 1 position among online brokers. The reason behind this is its dedicated customer service. In todays scenario, all the broking houses are trying to associate with major banks for the requirement of demat account. This benefits to both, the banks as well as the brokers. The banks are getting new products to offer and the brokers are getting huge customer base of banks. The popular banks in this category are ICICI, HDFC, Axis, Sbi etc. The broking houses like ICICI Direct, Kotak Secu. and HDFC Secu. are in association with single bank only i.e. ICICI Bank, Kotak Bank and HDFC Bank respectively, because of same group.

VALUE ADDED FACILITIES PROVIDED BY DIFFERENT BROKERS

Extra facilities Benefits or discounts on highvolume Yes Yes Yes BTST or ATST Credit facility Off market trading Loans for trading in IPOs

Equity Houses

India Infoline Religare Reliance Money

Not right now Yes Yes 57

Yes Yes No

Yes Yes Yes

Yes Yes Yes

Angel Broking ICICI Direct Kotak Secu. HDFC Secu. Anagram Sharekhan Indiabulls

Yes Yes Yes Yes Yes Yes Yes

Yes Yes Yes Yes Yes Yes Yes

Yes No No Yes Yes Yes Yes

Yes Yes Yes Yes No Yes Yes

No No Yes Yes Yes Yes Yes

Interpretation
Any benefits or discounts in case of high volume traders
In todays scenario, it is very necessary to provide additional benefits or special discounts to high volume traders or HNIs because it is very important to retain the same as they are the source of big revenues.

BTST/ ATST facility

BTST or ATST stands for Buy Today, Sell Tomorrow or Acquire Today, Sell Tomorrow. This facility has started few months back as an additional product to attract customers. In this, one can buy shares during the trading hours and then sell the same next morning when market gets open.

Delivery cash based or credit facility provided

Most of the brokers provide the facility of credit to its customers for few days and later on interest but this generates an additional head-ache of collecting payment. Now, the trend has somewhat changed as players like ICICI and Reliance are providing completely cash-based trading. Sebi is also in favour of the same as there is always a risk of defaulters in case of credit-based trading.

Provision of off market trading

Almost all the brokers are providing this type of facility for the people who wants to fill more than one IPO application, legally. So again, this is an additional benefit given to attract the customers. 58

Provision of loans for IPO trading

This is again a service for customers who want to invest in IPOs but are not having the enough capital. So, the brokers are providing the facility of loan for the same. But very few are considering it as a risk in this Bearish scenario.

Limitations
As we all know, security market is highly volatile. We may predict about it more accurate but due to uncertain driving forces the predictions may not work. The market risks and uncertainties are always there. Long term future of any market has impact of govt. policies and decisions. Indian economy is highly dependent on monsoon, so despite of all the precautions, projected growth rate cant be maintained.

FINDINGS AND SUGGESTIONS

From the one and half month experience of my research project with RELIANCE MONEY LIMITED. I have come to know a lot of things and it has enhanced my knowledge to a great extent. But from my point of view I found some things which are really needed to be taken into consideration. Some of recommendations and suggestions given by me are purely based on my study at the Reliance Money Limited. It doesnt have any kind of bias on my side. They are given as under:

59

The things I would like to comment on especially are the very low advertising and marketing initiatives by Reliance Money Limited.

The some customers who are current working with Reliance Money Limited now and then complain about the services provided by the branch.

The things such as the company not give you credit for purchasing a share therefore some of the customer not happy with this services.

The other thing that if and only if you deposit some amount then and then only you will be allowed to trade. So the customers who play very high jacks on intraday basis sometimes would not recommend this.

And the thing that it is compulsory original pan card copy to open a Demat Account and the Trading account with Reliance Money Limited. Without you can not open any one of them.

CONCLUSION
The research conducted by me is summarized as under: From the research, it could be concluded that Reliance Money Limited in all ways as compared with the other stock broking houses has a good scope in the Ahmedabad city. But since it has just finished 1 years of inception in Ahmedabad, it has gained much popularity in comparison of Angel, India bulls, Indiainfoline, Religare etc.

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Reliance Money Limited in always is good, just that it needs to provide more and better services and fast services to the customers. In Ahmedabad city the name Reliance Money Limited needs to be emphasized on, while marketing & selling the product. The market is 100% fully aware that what Reliance Money Limited. It could come up with products which cater to all segments of the society after a little cost cutting, than fixing up a standard service for all its customers, whose needs vary diversely.

BIBLIOGRAPHY

BOOKS AND MAGAZINES:

Business research Method cooper & schindler Tata McGraw Hill Reliance Money broachers and registration kit Financial Management P. Chandra (2001) Tata McGraw Hill

Websites:

www.nseindia.com www.bseindia.com www.reliancemoney.com www.investopedia.com

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