ANALYSIS OF RELIGARE ONLINE AND OFFLINE TRADING
A PROJECT REPORT2011
Submitted In Partial Fulfillment of the Requirement for the Award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
SUBMITTED BYNAVIN MEHTA
ISBE(A)FD2
UNDER THE GUIDANCE OF MR. VIPUL GUPTA (BRANCH MANAGER)
IIPM SATBARI CAMPUS
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Acknowledgement:
The completion of this project gives me an opportunity to convey my
regards to all those who helped me to reach a stage where I have the
confidence to launch my career in the competitive world of
management.
I am thankful to my Industry guide Mr.VIPUL GUPTA, & my faculty who
provided me the most needed guidance, suggestions and support to
make this project a wonderful reality.
NAVEEN KUMAR
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TABLE OF CONTENT
1. ABSTRACT
2. PREFACE
3. ACKNOWLEDGEMENT
4. INTRODUCTION
4.1) About the project
4.2) About the company
5. MAIN TEXT
5.1) NSE
5.2) BSE
5.3) EQUITY TRADING
6. ABOUT THE PROJECT
6.1) RELIGARE ONLINE
6.1a) online trading
6.2) religare offline
7. RESEARCH METHODOLOGY
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8. RESEARCH ANALYSIS
9. ANALYSIS AND INTERPRETATION
11. FINDINGS
12. RECOMMENDATIONS
13. ANALYSIS WITH CMPETITORS
14. CONCLUSION
15. LIMITATIONS
16. REFRENCES
17. ANNEXURES
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ABSTRACT
Analysis of financial reports takes a very important role for further
course of action of any corporate or business entity, and this entire
project is related to analysis of business & financials of this
corporate entity and find out how this company did its operations.
As any financial report consist many heads for revenue as well as
expenditure and major role of any business analyst is to analyze the
business, make future plans and boost the performance of the
organization. As this company is conducting its operations mainly
from its stock trading activities like by online trading activities and
offline trading, so for any decision one has to analyze its each and
every small and big activity till now so that an intense idea can be
analyzed.
This project is directly related to analysis of Religare online and
offline, so that it can be observed how it did its operations in past
few periods and did its strategies pour any kind of growth in
financials as well as its other wings of business. As Religare
Securities Ltd. is in mainly online trading business and trying to
capture big market share in this area so in this report it has been
analyzed thoroughly in different categories so that an idea can be
taken of its performance broadly.
Purpose of this analysis is to provide a blueprint for its
upcoming operations and to look into its financial reports for its
performance in terms of numbers which is a very important
component for business analysis and financial reports show a real
picture of any business performance and also gives us an insight for
future course of action.
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I was involved in selling DEMAT and trading accounts, the data of
prospective clients was given to me by the company, during that
time I also got the chance to interview them personally which
helped me to understand their needs.
The report covers the functional explanations of the concept of equity
trading in detail, the intricacies in the business of a stock broking firm. The
report includes a study on the existing clients in order to offer customized
services to its clients, a comparative study with the major players with
respect to the brokerage charged and a study on the new clients
addressing the needs and wants of the customers.
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PREFACE
As part of this two year programmed leading to master of
business Administration, IIPM curriculum of which includes
both theoretical and practical orientation in specialized
areas In fulfillment of this objective, I joined the
organization Religare Securities Ltd, NOIDA. I was assigned
to make a report, on Analysis of religare online and offline.
There are many differences in theoretical study and
practical study. The theories are universally applicable but
when it comes practical. The situation is different for the
person who have theoretical knowledge.
So practical knowledge is essential for
understanding a problem, solve the problem and coming to
a conclusion.
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Introduction:
About the project:
Problem recognition:
Considering the investment criteria for different customers and
the type of usage of each individual customer, it becomes a
challenge for the company to provide the right service to a
specific person.
Understanding the needs of customer becomes an important
aspect in capturing the untapped market share, and also in
retaining the existing customers.
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As a lot of companies are into the stock broking business, it is very
essential for the company to be aware of the strategies adopted by
the major competitors, and what are the options available to the
clients and what are the services provided by the competitors.
Procedure followed:
Keeping in mind the objective of the study the following
procedure is followed to achieve the objective.
In order to offer customized services to the retail clients, the
existing clients and the new clients will be interviewed
personally which will help in understanding the needs of
customers in a better way.
The project will also include a comparative analysis with
competitors.
All the concepts studied during the course of study are given in
detail.
About the company:
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Religare is one of the leading integrated financial services groups in
the country today, backed by a blue chip promoter pedigree and a
proven track record. Our businesses are broadly clubbed across three
key verticals, the Retail, Institutional and Wealth spectrums, catering
to a diverse and wide base of clients spread across the length and
breadth of the country. Structurally, all businesses are operated
through various subsidiaries held through the holding company,
Religare Enterprises Limited, which recently concluded its
resoundingly successful public offer.
The company offers a diverse bouquet of services ranging from
equities, commodities , insurance broking to wealth management,
portfolio management services, personal financial services,
investment banking and institutional broking services . Religare's
retail network spreads across the length and breadth of the country
with its presence through more than 1300 locations across more
than 400 cities and towns.
As part of its recent initiatives the group has also started expanding
globally. Religare has also successfully partnered with Aegon, one of
the global leaders to launch Life Insurance, Mutual Fund in India and
with Macquarie, for a Wealth Management joint venture.
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The vision is to build Religare as a globally trusted brand in the
financial services domain and present it as the ‘Investment Gateway
of India’. All employees of the group , currently more than 10,000 in
number, ceaselessly strive to provide financial care driven by the
core values of diligence and transparency.
Brand Identity
Name
Religare is a Latin word that translates as 'to bind together'. This
name has been chosen to reflect the integrated nature of the
financial services the company offers. The name is intended to unite
and bring together the phenomenon of money and wealth to co-exist
and serve the interest of individuals and institutions, alike.
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Symbol
The Religare name is paired with the symbol of a four-leaf clover.
The four-leaf clover is used to define the rare quality of good fortune
that is the aim of every financial plan. It has traditionally been
considered good fortune to find a single four leaf clover considering
that statistically one may need to search through over 10,000 three-
leaf clovers to even find one four leaf clover.
Each leaf of the four-leaf clover has a special meaning in the sphere of
Religare.
The first leaf of the clover represents Hope. The
aspirations to succeed. The dream of becoming. Of
new possibilities. It is the beginning of every step and
the foundations on which a person reaches for the
stars.
The second leaf of the clover represents Trust. The
ability to place ones own faith in another. To have a
relationship as partners in a team. To accomplish a
given goal with the balance that brings satisfaction to
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all not in the binding but in the bond that is built.
The third leaf of the clover represents Care. The
secret ingredient that is the cement in every
relationship. The truth of feeling that underlines
sincerity and the triumph of diligence in every aspect.
From it springs true warmth of service and the ability
to adapt to evolving environments with consideration
to all.
The fourth and final leaf of the clover represents Good
Fortune. Signifying that rare ability to meld
opportunity and planning with circumstance to
generate those often looked for remunerative
moments of success.
Hope. Trust. Care. Good fortune. All elements
perfectly combine in the emblematic and rare, four-
leaf clover to visually symbolize the values that bind
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together and form the core of the Religare vision
Business Structure and Client Interface
Retail Spectrum-
To cater to a large number of retail clients by offering all products
under one roof through the Branch Network and Online mode
Equity and Commodity Trading
Personal Finance Services
Mutual Funds
Insurance
Saving Products
Personal Credit
Personal Loans
Loans against Shares
Online Investment Portal
Institutional Spectrum-
To Forge & build strong relationships with Corporate and Institutions
Institutional Equity Broking
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Investment Banking
Merchant Banking
Transaction Advisory
Corporate Finance
Insurance Advisory
Wealth Spectrum –
To provide customized wealth advisory services to High Net worth
Individuals
Wealth Advisory Services
Portfolio Management Services
International Advisory Fund Management Services
Priority Equity Client Services
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Group companies:
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SUBSIDARIES OF RELIGARE.
(a) Religare Securities Limited
(b) Religare Finvest Limited
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(c) Religare Commodities Limited
(d) Religare Insurance Broking Limited
(e) Religare Venture Capital Private Limited.
Key Events and Milestones
Year Events 1994 RSL received membership of the NSE as `stock
broker
2000 RSL received membership of the Futures and Options segment
of the NSE RSL received registration as `Depository Participant' with
NSDL
2001 RFL received registration as `non-banking financial institution
not accepting public deposits with RBI
2002 RSL received registration as `Portfolio Manager' from SEBI
2003 RSL received registration as `Depository Participant' with CDSL.
2004 RSL received membership of the BSE as `stock broker
RCL received membership of MCX as `trading-cum-clearing member
RCL received membership of NCDEX as `trading-cum-clearing member
2005 RFL received enrollment as `AMFI registered mutual fund advisor
2006 Establishment of representative office in London. RCL received
membership of NMCE. RIBL received licence from IRDA to act as
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`composite broker'. Joint venture agreement with Aegon International
N.V. for carrying on the business of mutual fund asset
management.RSL received registration as `Merchant Banker in
Category - I from SEBI.
2007 RSL received membership of derivative segment of the BSE as
trading-cum-clearing member
Industr
y
: Finance -
General
BSE
Code
:
5329
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NSE
Code
:
RELIGAR
E
Busines
s Group
: Ranbaxy
Group
Face
Valu
e
: Rs.
10.0
0
ISIN
No
:
INE621H
01010
Chairm
an /
: Mr. Malvinder
Mohan Singh
Mark
et
Lot
: 1
Mark
et
Cap
:
3039.67
(Rs.Cr.)
Key Officials
Name
Designation
Malvinder Mohan Singh
Chairman / Chair Person
Sunil Godhwani
Managing Director & CEO
Ravi Batra
Company Secretary and Compliance Officer
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Management Profile:
Mr. Sunil Godhwani,
Chief Executive Officer & Managing Director,
Religare enterprises Limited.
Background:
Sunil Godhwani has been Chief Executive Officer and Managing
Director of Religare Enterprise Limited since April 9, 2007. Mr.
Godhwani serves as a Managing Director of Fortis Financial Services
Limited Institute, Limited since April 15, 2002. Mr. Godhwani has
more than 20 years experience in business. Mr. Godhwani has been a
Director of Ranbaxy Laboratories Ltd., since April 27, 2007, Fortis
Financial Services Ltd. since July 2007 and Religare Enterprise
Limited since July 13, 2006. Mr. Godhwani is a Graduate in Chemical
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Engineering and has a Master's Degree in Industrial Engineering and
Finance from Polytechnic New York.
. He served as a Managing Director of Religare Securities Institute,
Limited since April 15, 2002. Mr. Godhwani has more than 20 years
experience in business. Mr. Godhwani has been a Director of
Ranbaxy Laboratories Ltd., since April 27, 2007, Fortis Financial
Services Ltd. since July 2007 and Religare Enterprise Limited since
July 13, 2006. Mr. Godhwani is a Graduate in Chemical Engineering
and has a Master's Degree in Industrial Engineering and Finance
from Polytechnic New York.
Other Details
Business Group - Ranbaxy Group
Industry - Finance - General
BSE Code - 532915
NSE Code - RELIGAREEQ
Listings - BSE , NSE
ISIN No. - INE621H01010
Incorporation - 30/01/1984
Public Issue Date - 29/10/2007
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BOARD OF DIRECTORS OF RELIGARE ENTERPRISES LTD.
You can view latest board of directors of the company.
S.N
oName Designation
1 Mr. R K Shetty Alternate Director
2 Capt. G P S Bhalla Alternate Director
3 Mr. Malvinder Mohan Singh Chairman / Chair Person
4Mr. Deepak Ramchand
Sabnani Independent Director
5 Mr. Padam Bahl Independent Director
6 Mr. J W Balani Independent Director
7 Mr. Sunil Godhwani Managing Director & CEO
8 Mr. Shivinder Mohan Singh Non Executive Director
9 Mr. Harpal Singh Non Executive Director
Key Executives
S.No Name Designation
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1 Mr.Sunil Godhwani Managing Director & CEO
2 Mr.Ravi Batra Company Secretary and Compliance
Officer
Quality Statement
Quality Policy
Quality is an ever-extending goal - the better you are, the better you
need to be. The management of the quality process is infinite, and
marked only by milestones, never by completion!
Religare recognizes that it needs to constantly improve the quality of
its deliverables to match the increasing expectations of customers to
fulfill the goal of self-evident quality.
Vision
To build Religare as a globally trusted brand in the financial services
domain and present it as the ‘Investment Gateway of India’
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Mission
Providing financial care driven by the core values of diligence and
transparency.
Brand Essence
Religare is driven by ethical and dynamic processes for wealth
creation.
Religare Securities – Highlights
Equity Broking under three broad categories:
– Priority Client Trading (Advise Based Non Discretionary Trading)
– Retail Equity Trading (Relationship Manager & Dealing Team)
– Online Trading (Self Directed Trading)
Each Vertical creating their own infrastructure.
Improved Ratio of Relationship Manager vs. dealing team.
Gross Brokerage increased 98% from 1428 Million Rs. First
Half 07 to 2822 Rs. Million for Nine Months 07.
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Aggressive ramp up of equity trading client accounts and
PMS asset collection.
Established a productive equity research team with wide
coverage under Religare Securities Limited.
Received in principal approval from SEBI to be sponsor of
Asset Management joint venture with Aegon.
Received P1 Credit Rating from Crisil for its short term
debt issuance program for a sum of Rs 7000 million
Religare Enterprises Limited
Religare Securities Limited - Equity Broking
Portfolio Management Services
Depository Online Investment Portal Institutional Equity Broking
Religare Finvest Limited - Lending and Distribution business
Religare Commodities Limited – Commodity Business
Religare Insurance Broking Limited – Life and Non Life Insurance
Reinsurance
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Religare Capital Markets Limited - Investment Banking
SEBI Registered Merchant Banker
Acquisition in UK through an international arm
Religare Arts Initiative Limited - Art Fund and other businesses of Art
Gallery to be launched soon
Religare Realty Limited - Real Estate Management Company
Religare Venture Capital Private Limited – Private Equity and Investment Manager
New Initiatives - Religare is on a fast and ambitious growth
trajectory with some interesting plans in the pipeline
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AEGON Religare Life Insurance - Life Insurance Company, a Joint
Venture with Aegon one of the largest insurance and pension companies, globally
Religare AEGON AMC - Asset Management Company, a Joint Venture with Aegon
Religare Finance - Personal Loans / Credit Cards / Loan against Property /
Mortgage & Revers Mortgage.
Online Trading - Agreement with IndusInd Bank to offer online trading
services
Religare Macquarie Wealth Management Ltd - Wealth
Management Company , a Joint Venture with Macquarie
Wealth Management Services - with WallStreet Electronica, Inc., a U.S. broker - dealer
to give our Indian clients access to U.S markets
Religare Securities Ltd - Agreement with Vijay Co-operative Bank Ltd. and
Tamilnad Mercantile Bank Ltd. to offer offline trading services
# Answer Response %
1 Rally 31 53%
2 Rally Pro 20 34%
3 Rally lite 8 14%
Total 59 100%