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Documenti di Professioni
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ON
“RISK MANAGEMENT REGARDING WORKING OF A
BROKING FIRM, AND ITS INVESTORS”
AT
1
DECLARATION
I, the undersigned, hereby declare that the Project Report entitled “RISK
MANAGEMENT REGARDING WORKING OF A BROKING FIRM, AND ITS
INVESTORS” written and submitted by me to the SRM University, in partial
fulfillment of the requirement for the award of degree of Master of Business
Administration under the guidance of “mrs.khalil nisha”, is my original work
and the conclusions drawn therein are based on the material collected by
myself.
2
ACKNOWLDGEMENT
It’s a great privilege that I have done my project in such a well-organized and
diversified organization. I am great full to all those who helped and supported me
in completing the project.
First of all I would sincerely like to thank Mr. suhail azmat (Branch Manager,
Allahabad,U.P), for his valuable guidance and kind co-operation during the
project. I am highly grateful to Mr. vinay kumar tiwari (Sr. Relationship
Manager) for the help provided by them in various forms.
I am also thankful to our director Mrs. Jayshree suresh and my project guide
Mrs. Khalil nisha for helping me in completing the project.
Last but not least, I am also thankful to my parents, all college staff and my friends
for helping me directly or indirectly in my project.
Priyank Singh
3
INDEX
1 INTRODUCTION 10-24
1.1 Basic Concepts of the Topic
1.2 Need for the Study
1.3 Statement of the Problem
1.4 Objectives of the Project
1.5 Research Hypothesis
1.6 Scope of the Study
1.7 Stock exchange,cash market&derivative
4
5 FINDINGS & SUGGESTIONS 63-66
5.1 Main Findings (Conclusions)
5.2 Policy Suggestions
5.3 Scope of Development
6 BIBLIOGRAPHY 67-68
7 ANNEXURE 69-72
5
EXECUTIVE SUMMARY
6
Project Title: -
“Risk Management Regarding Working of a Broking Firm and Its Investors”
banking, financial sector, real estate, bullion, gold etc. The degree of risk however
varies on the basis of the features of the assets, investments instrument, the mode
“The chance of something happening that will have an impact upon objectives. It
Posses’ maximum risk in the financial market, managing it was felt most essential
7
Research Hypothesis: - Capital Market is growing very fast, turnover wise as
well as area of operation wise. The activities have reached through lengths and
breadth of the country. So there is increase in various broking firms. The working
of a broking firm is a very risky job because risk is involved in each and every
activity of the business.
Conclusions:-
The researcher found that the working of a broking firm is a very risky job
because risk is involved in each and every activity of the business.
The risk prevailing in the business is recognized therefore an efficient risk
management department is essential in every broking firm.
Broking business is a client-based business. The recent trend of voluminous
increase in investors has also increased the risk involved in it. There is need
of continuous up gradation of internal control measures.
Staff in a broking firm is continuous busy and due to which they are always
under stress.
Suggestions:-
An Organization should have a risk management function that is
independent of its trading staff i.e. personnel responsible for the risk
management function should be separate from trading floor personnel.
A periodical compliance review should be conducted to ensure conformity
with the rules and regulations.
The designated compliance officer should perform a review of trading
Practices annually.
8
Limitations of Study:-
To understand the overall working of share market, the period of 60 days is
not enough.
Moreover, very few investor and agents have a detail knowledge of the
study.
The study was conducted in Allahabad only, which restricted the scope of
the study.
9
CHAPTER I
INTRODUCTION
10
1.1 Basic Concepts of the Topic
Financial System
A Capital Market deals in financial assets, excluding coins and currency. The
financial assets comprise of banking accounts, pension funds, provident fund,
mutual fund, insurance policy, shares, debentures, and other securities. If the stock
exchanges are well regulated and function smoothly, then it is an indication of
healthy capital market. Stock exchange provide a good leverage of the capital
market and their relationship is directly proportional. India has multi-stock
exchange system with more than 24 stock exchanges functioning across the
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country. In our country, capital markets are generally also known as security/stock
market.
The Indian Capital Markets can be broadly classified into three types of markets.
1. Money market
2. Primary market
3. Secondary market
Money market
The money market is part of overall financial system and securities or capital
market. It deals in short term financial assets which can be readily converted into
cash. Money market is a place for trading in money and short tern financial assets
that are as liquid as money. It provides a platform for short term surplus funds of
lenders or investors and short term requirements of borrowers, the instruments can
be traded at low cost and are highly liquid.
Primary market
The primary market provides the channel for sale of new securities. Primary
market provides opportunity to issuers of securities; Government as well as
corporates, to raise resources to meet their requirements of investment and/or
discharge some obligation.
They may issue the securities at face value, or at a discount/premium and these
securities may take a variety of forms such as equity, debt etc. They may issue the
securities in domestic market and/or international market.
12
Secondary Market
Secondary market refers to a market where securities are traded after being
initially offered to the public in the primary market and/or listed on the Stock
Exchange. Majority of the trading is done in the secondary market. Secondary
market comprises of equity markets and the debt markets.
RISK MANAGEMENT
1 Global Perspective
13
4 Integrated management
5 Continuous processes
7 Team work
i. Identify - Search for and locate risks before they become problems
ii. Analyze - Transform risks data into decision-making information. Evaluate
impact, probability, and time frame, classify risks, and prioritize them
iii. Plan - Translate risk information into decision and mitigating actions (both
present and future) and implement those actions
iv. Track - Monitor risk indicators and mitigation actions
v. Control - Correct for deviations from the risk mitigation plan.
vi. Communicate - Provide information and feedback internal and external to
the project on the risk activities, current risks, and emerging risks.
14
RISK MANAGEMENT IN A BROKING FIRM
Margins
NSE has specified Different margins for different instruments like stocks futures
and options etc. Margins depend upon the volatility and market conditions, It vary
from stock to stock and instrument to instrument
Categorization of stocks for imposition of margins
Daily margins payable by members consists of the following:
Daily margin, comprising of the sum of VaR margin and mark to market margin is
payable.
15
Value at Risk Margin
VaR margin is applicable for all securities in rolling settlement. All securities are
classified into three groups for the purpose of VaR margin.
The VaR based margin would be rounded off to the next higher integer (For E.g.:
if the VaR based Margin rate is 10. 0 1, it would be rounded off to
11. 00) and capped at 100%.
The VaR margin rate computed as mentioned above will be charged on the net
outstanding position (buy value-sell value) of the respective clients on the
respective securities across all open settlements. The net positions at a client level
for a member are arrived at and thereafter, it is grossed across all the clients for a
member to compute gross exposure for margin calculation.
Mark-to-Market Margin
16
In the event of the net outstanding position of a member in any security being nil,
the difference between the buy and sell values would be considered as notional
loss for the purpose of calculating the mark to market margin payable.
Some Risk management are also taken by BSE they are as follows
Under the procedure the member brokers of the exchange are compulsory
required to obtain detailed information of clients prior to commencement of
any transactions with new clients. A similar procedure is also to be
followed for existing clients. This information is to be made available to the
exchange authorities whenever called for. In case the member broker fails
to furnish the same it is viewed seriously.
The exchange has outlined the process i.e. in case the transaction in a script
with one particular client in a settlement exceeds Rs 10 laks then the
member are to send the photocopies of the transfer deeds and the share
certificates to the company/ registrar for verification of the material
particulars. The basic idea behind the introduction of this procedure is to
prevent fake/forged/stolen shares from being introduced in the market.
3. Inspection
4. Insurance
17
comprehensive policy that covers risks faced by the exchange, its member
brokers and the clearinghouse.
The risks covered under the basic cover of the policy are detailed as below.
- Loss to members on account of infidelity of employees
- Loss of member on account of fake/forged/ stolen shares being introduced
by his clients
- Direct financial losses suffered by the member broker on account of
physical loss, destruction, theft or damage to securities and cash.
- Loss on account of securities lost in transit
- Loss suffered on account of incomplete transaction
- Loss sustained as final receiving member on exchange on account of
default of the introducing member
- Loss on account of errors and omission
- Directors and officials liability cover
Government of India and SEBI have been stressing upon the need for regulating
the secondary market and bringing transparency in transactions on the floor of
stock exchanges
The steps taken by SEBI to regulate and control the business of stock exchanges
and reduce the risks of investors are as follows
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debenture trustees, custodians etc so as to have access/inspection of their
books, records and verification of transactions..
4. Indirect supervision through stock exchanges in day-to-day business by
fixing margins, imposing curbs, penalties and fines.
5. Gradual automation to reduce paper work and ensure transparency in
transactions this is now almost complete and all stock exchanges have been
computerized.
6. Brokers contact notes to mention brokerage separately.
7. Nationwide paperless trading through over the counter exchange of India,
National Stock Exchange, BSE, DSE and other exchanges.
8. Brokers to keep clients money in a separate bank account.
9. Forward trading being banned on stock exchanges
10. Stress upon shorter settlement period.
11. Dematerialization of securities permitted on a selective basis. By March
2001, about 3500 companies will have compulsory trading in Demat mode.
12. Stern action against erring brokers, stock exchanges, companies, merchant
bankers, etc.
13. Regulation for fraudulent trade practices
14. Total transparency and automation of stock exchanges.
15. Effective margin system for smooth settlement.
16. Circuit breaker system to check volatility on the exchanges
17. Introduction of modified carry forward system and automated lending
borrowing mechanism (ALBM).
18. Introduction of Internet trading.
19. Derivative trading in index based futures of 30, 60 and 90 days.
20. Practicing prudent governance norms.
19
Recent Development steps taken by SEBI for Investor protection
SEBI has directed all stock exchanges to constitute service centers for
investors to enable the investors to have a form for recording and
counseling of their grievances as well as access financial and other
information of companies on government policies, rules, regulations, etc.
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4. Compliance Officer
5. Corporate Governance
SEBI has prescribed prudent corporate governance norms for all listed
companies to ensure transparency and better disclosure practices.
6. Investor Education
Create awareness among investors about the different risks involved in the
broking firms.
Understand the total transparency and automation of broking firm
Give basic knowledge to investors regarding risk in broking firm
Also understand the equity market and different way of trading
Convert our therotical knowledge in to practical knowledge
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1.4 Objectives of the Project
Company can take review from market through this project. Management people
can get overall idea about the risk management regarding working of broking
firms. They also understand what information provide to investor for avoiding the
risk.
Bombay stock exchange is the oldest stock exchange of India For the premier
Stock Exchange that pioneered the stock broking activity in India, 128 years of
experience seems to be a proud milestone. A lot has changed since 1875 when 318
persons became members of what today is called "The Stock Exchange, Mumbai"
by paying a princely amount of Re1.
Since then, the country's capital markets have passed through both good and bad
periods. The journey in the 20th century has not been an easy one. Till the decade
of eighties, there was no scale to measure the ups and downs in the Indian stock
market. The Stock Exchange, Mumbai (BSE) in 1986 came out with a stock index
that subsequently became the barometer of the Indian stock market.The BSE
indeces known as sensex.
The National Stock Exchange of India Limited has genesis in the report of the
High Powered Study Group on Establishment of New Stock Exchanges, which
recommended promotion of a National Stock Exchange by financial institutions
(FI’s) to provide access to investors from all across the country on an equal
footing. Based on the recommendations, NSE was promoted by leading Financial
Institutions at the behest of the Government of India and was incorporated in
November 1992 as a tax-paying company unlike other stock exchanges in the
country.
23
The Stock Exchange, (NSE) came out with a stock index that subsequently
became another barometer of the Indian stock market known as NIFTY.
National stock exchange gives the investors different option where an investor can
deal the equities into different market situations like cash market and derivatives.
Cash market is simply the equity market where investors have to pay the security
amount which is done in BSE also but in NSE investors has the choice of dealing
in derivatives. Derivatives are the future market where investors have the option of
dealing in the price list of futures for which there a separate index is present
known as NIFTY FUTURE.
In Derivatives there are two choices available for an investor FUTURES AND
OPTIONS
FUTURE – In future market shares are deal in lots these lots could be of different
numbers like 100, 200, 500 etc. Investors while taking over these lots and coming
under the contract takes the position of the shares by paying the 1/3rd amount of
the total holdings. (could be understood by a formula).
Holdings of investors = (shares lot * price of the lot) / 3.
This formula explains that as investor is interested in taking 2 lots of
reliance of 100 shares of Rs. 900 , the investor has to pay:-
(2*100*900) / 3 = 60000/
Which shows the investor is taking the position of Rs. 180000/- in just Rs. 60000/-
in future market which the area of attraction of this particular market. These
holdings are taken for 1 month, 2 months and three months according to the
investor’s preference. The beauty of this contract is that the remaining 2/3rd
money of the holdings is paid by the broking house the investors dealing with.
Investor coming into this contract should know that by the time of contract he is in
like of 1 or 2 months investor should clear its position before the last Thursday of
the expiry month.
OPTIONS – Option is a contract where the investor has two options to deal with
CALL and PUT. The concept of call and put is opposite to each other call is the
contract where the investors believe that the market is going to be BULLISH in
near future and put option is taken when he thinks that the market is going to be
BEARISH in the future.
In the call option investors is benefited if market drives up in future and in put will
be benefited if it slips down.
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CHAPTER II
PROFILE OF THE
ORGANISATION
25
2.1 NAME-
Corporate Office:
19 Nehru Place, New Delhi – 110019
Website : www.religare.in
Email : info@religare.in
SMS : RELIGARE to 58888
ALLAHABAD:
2, S.P Marg, Civil Lines,
Pin 211001.
Company’s Vision –
“To build Religare as a globally trusted brand in the financial services domain and
present it as the ‘Investment Gateway of India”.
Company’s Mission –
“Providing complete financial care driven by the core values of diligence and
transparency”.
Brand Essence –
“Core brand essence is Diligence and Religare is driven by ethical and dynamic
processes for wealth creation”.
26
2.3 History and background
REL operates from seven domestic regional offices, 43 sub-regional offices, and
has a presence in 498* cities and towns controlling 1,837* business locations all
over India.
To make a mark in the global arena, REL acquired UK-based Hichens, Harrison
& Co. in 2008 which was subsequently re-named as Religare Hichens Harrison
PLC ("RHH"). Hichens, Harrison & Co. was incorporated in London in the year
1803 and is believed to be one of the oldest firms of stockbrokers in the City of
London. Pursuant to expansion of REL's business, the company has grown from
largely an equity trading company into a diversified financial services company.
With the addition of RHH the REL group now operates out of multiple global
locations, other than India, (the UK, the USA, Brazil, South Africa, Dubai and
Singapore).
27
RELIGARE is a pioneer in the concept of partnership to reach multiple locations
in order to effectively service its large base of individual clients. Besides the reach
of RELIGARE, the clients of the company greatly benefit by its strong research
capability, which encompasses fundamentals as well as technical knowledge.
RELIGARE GROUP:
RELIGARE in recent years has expanded its reach in health care and
financial services wherein it has multiple specialty hospital and labs which provide
health care services and multiple financial services such as secondary market
equity services, portfolio management services, depository services etc.
RELIGARE financial services group comprises of Religare Securities
Limited, RELIGARE Comdex Limited and RELIGARE Finvest Limited which
provide services in Equity, Commodity and Financial Services business &
Religare Insurance Advisory Ltd.
RSL provides platform to all segments of the investor to leverage the immense
opportunity offered by equity investing in India either on their own or through
managed funds in Portfolio Management.
The ARN No. of the Religare Securities Ltd. is 33764. The ARN No. is
required by to be available with the broker who deals on behalf of investors or sell
the mutual funds of the different companies present in the market.
28
Equity and Trading
Race and Rally are the two products offered by Religare Securities ltd which come
under equity and derivatives.
Rally
Race
While Rally deals with offline facilities, Race provides for complete online
package and facility. There is difference between both offline and online modes of
trading. The difference lies on account of its schemes, platforms and facilities
provided. Initially the clients used to go for offline modes of trading, but now with
increasing use of internet online mode has become the preference.
29
2.4
30
2.5 SERVICES :-
Equity
Arts
Commodity
Initiative
Investment Mutual
Banking REL Fund
Wealth
Advisory Insurance
Services
Personal
Credit
Promoter Groups
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2.6 Organization Structure:
32
Brokerage at Religare
o Classic Account
Intraday brokerage varies from 0.3% to 0.5%.
Delivery brokerage varies from 0.30% to 0.50%..
o Freedom Account
In this payment scheme, investor has to pay a fix amount in advance
for Annual Subscription (Rs 4000). This one time payment enable
account holder to trade for Rs. 3,00,000 intraday & derivative
trading and Rs. 40,000 of delivery based trading for zero brokerage.
o Trump Account
Trump account has two payment options
1. Trump Plus has annual subscription fees of Rs 2,500, Brokerage
on Delivery Trades of 0.25% and Brokerage on Intraday Trades &
F&O Trades of 0.025%.
2. Trump Super has annual subscription fees of Rs. 15,000,
Brokerage on Delivery Trades of 0.15% and Brokerage on Intraday
Trades & F&O Trades of 0.015%.
Advantages of Religare
33
2.7 Competititors of Religare:-
There are several financial security companies playing their roles in Indian equity
market. But Religare faces competitions from these few companies.
ICICI Direct.com
Kotak Securities.com
India Bulls
HDFC Securities
5paisa.com
Motilal Oswal
IL&FS
Karvy
34
ICICIDIRECT
INDIABULLS
Indiabulls is India's leading Financial Services and Real Estate
Company having presence over 414 locations in more than 124
cities. Indiabulls Financial Services Ltd is listed on the National
Stock Exchange, Bombay Stock Exchange, Luxembourg Stock
Exchange and London Stock Exchange.
Diverse offerings
Dynamic Management Team
State-of-the art technology
Vast Distribution and Reach
Robust Brand Recognition
Synergistic partnerships
Innovative Initiatives
36
SWOT ANALYSIS
37
STRENGTHS WEEKNESS
Strong corporate No satisfactory Brand
relationship with its awareness and no Brand
promoter RANBAXY recall value
Collaborations with highly In case of intraday the
reputed international order is automatically
companies AEGON and squared off at 3.10 pm
MACQUERIE. Problem in linking
Provides transparency to Religare demat account
clients with the five banks HDFC,
Highly qualified research CITIBANK, AXIS, ICICI,
team INDUS Bank.
Strong network throughout
India, strong presence in
WEST, NORTH and
SOUTH
OPPURTUNITIES THREATS
Even the strong players in Competition from major
the market holds 6% of players like ICICI
market share, so there is a DIRECT, SHAREKHAN,
good potential for growth INDIA BULLS, KOTAK
The growing interest of etc.
people in the stock market The downfall in the stock
Indian stock market story market
going strong
38
CHAPTER III
RESEARCH DESIGN &
METHODOLOGY
39
Research Methodology comprises defining and redefining the problem,
formulating hypothesis or suggesting solution, collecting, organizing and
evaluating the data, making deduction and reaching to conclusions and determines
whether the formulated hypothesis is right and wrong.
I have taken sample size of 50 respondents. Because the population is too large so
it is difficult to survey.
Any organization whether big or small, private or public need different types of
information are to know its popularity. I have gathered secondary data and primary
data and collected information from the combination of these two data.
Moreover, very few investor and agents have a detail knowledge of the
study.
The study was conducted in Allahabad only, which restricted the scope of
the study.
The data provided by the investor and the agents can’t be held true as 100%
correct.
41
CHAPTER IV
DATA PRESENTATION,
ANALYSIS &
INTERPRETATION
42
ANALYSIS AND INTERPRETATION
ANALYSIS:
Among the 50 questionnaires filled, it was clear that among them maximum
people invest in the category of 10-20%. Thus Religare has the opportunity to
capture this segment. But people are not aware of the services so here Religare has
to work in this area.
43
2. You invest in which of the following financial instruments?
(a) Securities
(b) Mutual fund
(c) Commodities
(d) Insurance
(e) Other Instruments
ANALYSIS:
The above observation speaks about the financial instruments in which the people
invest; most of the people invest in the securities through share market and then
invest in the insurance. Thus more focus should be made on securities so that
company has the maximum investment. This would ultimately increase the profits.
ANALYSIS:
It can be seen that among the whole population around 58% people either invest in
stock market or they are actually interested, but don’t have a good knowledge
about it. So these people can actually become Religare’s target market but religare
has to provide them the better services and brokerage plans and also, providing
them the initial platform of online trading.
45
(b) NO
ANALYSIS:
Among 50 respondents 32 actually have a demat account and are aware of the
dealings in stock trading. The rest 18 are still in the other category. So strategies
should be made to convert these people in to our potential customers.
46
ANALYSIS:
Among 50 respondents 32 had a demat account. Of these 32, 21 have their demat
account offline and rest 11 have their demat accounts online. As online broking is
still at a premature stage in India. Thus more and more awareness should be made
about the online broking services.
47
ANALYSIS:
Among these 32 people most of them have their demat account with ShareKhan
and Indiabulls. Thus these two are Religare’s biggest competitors. Also
ICICIDirect gives a good competition to Religare. These brands have a good brand
recall as compared to Religare.
(a) Yes
(b) No
48
ANALYSIS:
It can be seen that among the population who invest in stock market, around 37%
people either trade in future or they trade in option. So these people can actually
become Religare’s target market as they generate heavy brokerage for the
company. Religare has to provide them the better services and brokerage plans and
also, providing them the initial platform of online trading.
49
ANALYSIS:
The above observation speaks about the; most of the people do trading every day.
Thus more focus should be made on the traders which are every day traders. The
company should also focus on the others also because they are the traders for the
long term investment and also, provide heavy brokerage to the company.
50
ANALYSIS:
A good percentage of people give the annual maintenance charge to the company.
Religare can have the advantage of attracting their customers as they don’t charge
the AMC on its brokerage plans and which will work to generate sales.
51
10. How much Brokerage do you pay on Intraday?
(a) (0.01 – 0.02) % (b) (0.02 – 0.03) %
(c) (0.03 – 0.04) % (d) (0.04 – 0.05) %
(e) 0.05 % or more
ANALYSIS:
It can be seen that the companies are charging brokerage according to their own
means. So, the companies are creating biasness between the customers. Even if the
customers portfolio is the same then also the brokerage may vary from the person
to person. So, religare has the best feature of providing less brokerage and
according to the customers wants.
52
11. How much Brokerage do you pay on Delivery?
(a) (0.1 – 0.2) % (b) (0.2 – 0.3) %
(c) (0.3 – 0.4) % (d) (0.4 – 0.5) %
(e) 0.5 % or more
ANALYSIS:
Here also you can see that the long term investors have to give brokerage
according to what the company wants. So, here also the biasness is created in the
mind of the customers. So, Religare got a great opportunity to attract the
customers by giving the brokerage plans according to what the customer want.
53
12. Are they getting the good services?
(a) Yes
(b) No
ANALYSIS:
It can be seen from the observations that there are customers who are not satisfied
by the services given by the brokerage companies can be converted by providing
better services to them. Sometimes even if the customers have the same or more
investment then also, he is getting fewer services than the other one. So, Religare
can convert them by providing better services to them.
54
13.Preference of Investment:
Interpretation: This shows that although the mutual funds market is on the rise
yet, the most favored investment continues to be in the Share Market. So, with a
more transparent system, investment in the Stock Market can definitely be
increased.
55
14.Awareness of online Share trading :
YES NO
45 5
56
15.Awareness of Religare as a Brand.
YES NO
29 21
AWARENESSOF RELIGAREASABRAND
43%
YES
NO
57%
Interpretation: This pie chart shows that Religare has a reasonable amount of
Brand awareness in terms of a premier Retail stock broking company. The
company to increase its market share over its competitors should further leverage
this brand image.
57
16.Awareness of the facilities provided by Religare :
YES NO
42 8
Interpretation: Although there is sufficiently low brand equity among the target
audience yet, it is to be noted that the customers are not aware of the facilities
provided by the company meaning thereby, that, the company should concentrate
more towards promotional tools and increase its focus on product awareness rather
than brand awareness.
58
BROKING FIRMS INVESTORS
Religare Securities 6
ICICI Direct 15
Kotak Securities 4
India Bulls 12
Others 13
Interpretation: This shows that even with sufficiently high Brand Equity,
Religare ranks only 3rd amongst the Demat account providers. This is probably
because of two main reasons:
Hence, the company should crystallize its products and should indulge in
aggressive marketing and promotion.
59
YES NO
46 4
Interpretation: This pie chart accentuates the fact that Strategic marketing, today,
has gone beyond only meeting Sales targets and generating profit volumes. It
shows that all the competitors are striving hard not only to woo the customers but
also to make them Brand loyal by generating customer satisfaction.
60
19.How often do you trade:
Frequency of T rading
Da ily - 9%
W ee kly - 27%
M o n th ly -53%
Ye arly -11%
Interpretation: In spite of the huge returns that the share market promises, we see
that there is still a dearth of active traders and investors. This is because of the non
– transparent structure of the Indian share market and the skepticism of the target
audience that is generated by the volatility of the stock market. It requires efficient
bureaucratic intervention on the part of the Government.
61
20.Percentage of earnings invested in Share Trading :
Interpretation: This shows that people invest only upto 10% of their earnings in
the stock market, again reiterating the volatile and non-transparent structure of the
Indian stock market. Hence, effective and efficient steps should be undertaken to
woo the customers to invest more in the lucrative stock market.
62
CHAPTER V
FINDINGS & SUGGESTIONS
63
5.1 MAIN FINDINGS (CONCLUSION)
The researcher found that the working of a broking firm is a very risky job
because risk is involved in each and every activity of the business.
Staff in a broking firm is continuous busy and due to which they are always
under stress.
64
5.2 POLICY SUGGESTIONS
Highly qualified staff not only in front office positions such as trading desk,
relationship officer and sales but also all back office functions responsible
for risk management and internal control.
65
5.3 SCOPE FOR DEVELOPMENT RELIGARE
SECURITIES)
RELIGARE SECURITIES have set themselves very stringent and high standards
of Risk Management. However I would like to make a few points, which would
help the organization in a big way.
Fast and frequent interaction between the risk managers, the sub brokers
and client will help in reducing the delay in giving limits.
Regarding dealers risks, well-trained and less stressed dealers will help in
reducing the mistakes. It has been observed that most of the mistakes are
done when they are under stress. HRD must help in this matter.
Along with large client base, quality of clientele will help in balanced
growth of business and minimizing the risk.
66
CHAPTER VI
BIBLIOGRAPHY
&
WEBLIOGRAPHY
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FINANCIAL SERVICES AND MARKETS
Author: - Dr. Gurusamy
www.religare.in
www.bseindia.com
www.nseindia.com
www.google.co.in
Dalal Street
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ANNEXURE
QUESTIONNAIRE
NAME:
GENDER: AGE:
OCCUPATION: ANNUAL INCOME:
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1. How much income are you able to save or invest?
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10. How much Brokerage do you pay on Intraday?
18. Are you currently satisfied with your Share trading company?
Yes No
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Up to 10% Up to 25% Up to 50% Above 50%
21.What more facilities do you think you require with your DEMAT account?
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