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CONTENTS

YUSUFJAY AYUB KHAN H.

NO. PARTICULAR PAGE

NO.1. OVER ALL INTRODUCTION 2

EXECUTIVE SUMMARY 3

INDUSTRY INFORMATION 4 COMPANY INFORMATION 21

REGULATORUY ENVIRONMENT

INFORMATION

80

2. FUNCTIONAL AREA INFORMATION 85

OPERATIOM DEPARTMENT STUDY 86

MARKETING DEPARTMENT STUDY 91

FINANCE DEPARTMENT STUDY 98

HUMAN RESOURCE DEPARTMENT

STUDY

100

3. LIST OF CHARTS 112

4. LIST OF TABLES 113

5. BIBLIOGRAPHY 114

6. WEB SITES 115

1

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OVER ALL INTRODUCTION

• EXECUTIVE SUMMARY

• INDUSTRY INFORMATION

•

COMPANY INFORMATION

• REGULATORY ENVIRONMENT INFORMATION

EXECUTIVE SUMMARY

Being a part of MBA curriculum, this summer training has given me an ideal

opportunity to have a practical exposure with the different functions of the Industrial

or Corporate sector. This facilitates the understanding and related learning to me, which

helps me in understanding the subject better.

YUSUFJAY AYUB KHAN H. 2




In this era computer awareness and use of internet is increasing, so people tend to

save the time by using automatic tools for most of their routine and non routine work.

Online share trading system has entirely changed the scenario of capital market. Now

people who use online share trading facility need not have to call his broker or to sit

in terminal to trade in stock market. They can trade in stock market with the use of

computer & internet. This is completely paper less procedure. Investor can save a lot

of time by using this facility. Reliance Money provides online share trading, mutual

fund, insurance & IPO facility to its clients. But as in all the industries online share

trading market is also crowded with many competitors like ICICIDirect.com, HDFC

Securities, Share khan, India bulls, 5paise.com, Angel Broking and Kotak Securities

etc. But still many unique facilities are provided by Reliance Money.

Thus, the project highlights all the unique aspects of Reliance Money. Moreover it

provides the functioning way of Reliance Money through its organizational study.

Moreover in this technocracy World, there are still traditional trading investors who

totally differentiate themselves from the new trading investors.

This project does not only impart the necessary theoretical knowledge about the

field but also provides an opportunity to have an experience in the corporate world.





INDUSTRY

INFORMATION

Stock exchanges are like market places where stockbrokers buy and sell securities of

individuals or institutions. Stock prices fluctuate from minute to minute, with the price

of a stock at any given time being determined by the demand for it. Stock markets

have gone through tremendous improvements to match the expectations of the

growing industry. The introduction of norms for greater transparency in operations

and the international trading and investments exposure as well as support of

professional analysis have brought about tremendous improvements in this sector.





Security Exchange Board of India (SEBI) oversees the operations of banks and

financial institutions as watchdog. It is the regulatory body in charge of the country’s

capital markets. In every way possible, professionalism has come into the stock

market business.

The Securities have already redefined themselves and have introduced the compilation

of a database to identify avenues of investments in industries. Some of Indian finance

service companies have already made some progress in setting up equity research for

identifying growth scripts for portfolio investment and have taken up stock broking

earnestly.

INDIAN CAPITAL MARKET

The function of the financial market is to facilitate the transfer of funds from surplus

sectors (lenders) to deficit sectors (borrowers). Normally, household have excess of

funds or savings, which they lend to borrowers in the corporate and public sectors

whose requirement of funds far exceeds their savings. A financial market consists of

investors or buyers, sellers, dealers and does not refer to a physical location. It means

that it is not requirement of existence of any physical place in the market. We can say

any condition that it is market when any purchaser and seller come into existence.

And in case of capital market we can say any condition a market when there is an

existence of investors and borrowers of the fund. Formal trading rules and

communication networks for originating and trading financial securities link the

participants in the market.

INDIAN FINANCIAL SYSTEM


FINANCIAL SYSTEM

EQUITYMARKET

DEBTMARKET TREASURY BILLSCALL MONEY MARKETTERM MONEYCOMMERCIAL BILLS

PRIMARYMARKET

SECONDARYMARKET

DERIVATIVEMARKETPRIVATE

PLACEMENTOTCEIBSEISE INDEXSTOCK

REGIONALSTOCK

EXCHANGES

INTERMARKET

CAPITALMARKET

MONEYMARKET




Chart 5: Indian Financial System

Despite rapid expansion of the organized money market through a large network of

banking institutions that have extended their reach even to the rural areas, there is still

an active unorganized market. It consists of indigenous bankers and money lenders. In

the unorganized market, there is no clear demarcation between short-term and long-

term finance and even between the purposes of finance. The unorganized sector

continues to provide finance for trade as well as personal consumption. The inabilities


COMMERCIAL PAPERS

CERTIFICATES OFDEPOSITS

PRIMARY SEGMENT

SECONDARYSEGMENT

PUBLICISSUE

NSE F & O

DOMESTCMARKET




of poor to meet them take recourse to the institutions that still remain outside the

regulatory framework of banking. But this market is shrinking.

The capital market provides the framework in which savings and investment take

place. On the one hand it enables companies to raise resources from the investors and

on the other; it facilitates households to invest their savings in industrial or

commercial activities. Those saving instrument that can be bought or sold freely are

called securities. These include a range of products debt and equity that can be traded.

The market where such trades place is called the securities market where such trades

take place is called the securities market and comprises the various exchanges,

intermediaries and its regulatory institutions.

The capital market consists of primary and secondary segments. The primary market

deals with the issue of new instruments by the corporate sector such as equity shares,

preference shares and debentures. The public sector consisting of Central and State

Government, various public sector industrial units, statutory and other authorities such

as state electricity boards and port trusts also issue bonds. The primary market in

which public issue of securities is made through a prospectus is a retail market and

there is no physical location. Direct mailing, advertisements and brokers reach the

investors. Screen based trading eliminates the need for the trading floor.

The secondary market or stock exchange where existing securities are traded is an

auction arena. It may have a physical location like a stock, exchange or a trading

floor. Since 1995 the trading in securities is screen based training eliminates need for

a trading floor. And since the last year Internet-based trading has also made an

appearance in India.

The secondary market consists of 23 stock exchanges including the National Stock

Exchange and the over the counter Exchange of India and Inter Connected Stock

Exchange of India Ltd. The secondary market provides a trading place for the

securities already issued to be bought and sold. It all provides liquidity to the initial

buyers in the primary market to re-offer the securities to any interested buyer at any

price, if mutually accepted. An active secondary market and capital formation because





investors in the primary market are assured of a continuous market and they can

liquidate their investments in the stock exchange.

There are several major players in the primary market. These include the merchant

bankers, mutual funds, and financial institutions, foreign institutional investors (FIIs)

and individual investors. R & T (Registrar and Transfer) agents, custodians and

Depositories are capital market intermediaries that provide important infrastructure

services for both primary and secondary markets.

It is important to ensure a smooth working of this market, as it is the arena where the

players in the economic growth of a country interact. Various laws have been passed

from time to time to meet this objective. The financial market is India was highly

segmented until the initiation of reforms in 1992-93 on account of a variety of

regulations and administered prices including barriers to entry. The reform process

was initiated with the establishment of Securities and Exchange Board of India

(SEBI).

CAPITAL MARKET PROCESS





Chart 6: Capital Market Process

Initial Public Offering (IPO):

New and old companies can offer their shares to the investors in the primary market.

This kind of tapping the savings for the first time is called IPO (Initial Public Offer)

and raise the fund from the market for the second time by any existing company is

known as FPO (Forward Public Offer). SEBI guidelines regulate various proceduresinvolved in making a public issue but price of shares, size of the issue, timing of the


2. PRIVATE

PLACEMEN

T

3. RIGHT

ISSUE

4. STOCK

TRADING

5. INTERNET

TRADING

1. IPO




issue, listing of the issue is decided by the issuer. Issuers have to disclose all relevant

facts and information in the prospectus. Prospectus also has to disclose risk factors

and management perception about those risks.

Large initial public offers are made through book building route. Under this route,

market determines the price of issue by offering bids. Companies Act was necessarily

amended directing that all public issues above Rs. 10 crores have to be necessarily in

Demat form. Investor can receive shares in a public issue by writing DP-Id and

Client-Id in the share application form.

Private Placement:Methods of raising funds directly from investors without issue of prospectus to the

public are known as private placement. SEBI has prescribed the eligibility criteria for

companies and instruments as well as procedures for private placement. Privately

placed securities can also be listed if such placements fulfill all listing criteria.

Preferential Offer or Rights Issue:

Companies can expand their capital by offering the new shares to their existing

shareholders. Such offers for sale can be made to the existing shareholders by giving

them a preferential treatment in allocation or the offer can be on a rights basis i.e. the

existing holders can get by way of their right, allotment of new shares in certain

proportion to their earlier holding. If the shares are offered to a few of the existing

shareholders instead to all shareholders or at a price different from the price at which

they are issue to all, such issues are called preferential allotments. Preferential

allotments require shareholders approval in the general body meeting. Further, allsuch offers have also to be in compliance with criteria laid down by SEBI.

Stock Trading:

An investor in securities needs assurance that they can convert their security holdings

to cash to meet their cash requirements. The ability to convert value of securities into

cash as and when anybody wants is called liquidity. The liquidity is provided by the

stock exchange. Stock exchange is a platform where buyers and sellers of securities

will match their bids and offers for securities and exchange securities with cash. The





offers and bids are routed through members of the stock exchange, popularly known

as a “broker.” Stock exchange regulates the transactions of the broker and ensures

that the transactions are conducted fairly and transparently with justice to both buyers

and sellers.

Internet Trading:

With the Internet becoming ubiquitous, many institutions have set up securities

trading agencies that provide online trading facilities to their clients from their homes.

This has been possible since all the players in the securities market, viz. stockbrokers,

stock exchanges, clearing corporations, depositories, DPs etc are linked electronically.

Thus information flows amongst them on a real time basis.

INTERNET TRADING IN INDIA

In the past, investors had no option but to contact their broker to get real time access

to market data and to trade the stock market. But with the passage of time, emergence

of internet trading brings a new trend in the field of Stock Market. Now investor is not

required to go to his/her broker to deal in the Stock Market but he/she can trade easilyat their convenience. The Net brings data to the investor on line and net broking





enables him to trade on a click. Now information has become easily accessible to both

retail as well as big investors.

The development of broking in India can be categorized in 3 phases:

1. Stock brokers offering on their sites features such as live portfolio manager, live

quotes, market research and news to attract more investors.

2. Brokers offering on line broking and relationship management by providing and

offering analysis and information to investors during broking and non-broking hours

based on their profile and needs, that is, customized services.

3. Brokers (now e-brokers) will offer value management or services such as Initial

Public Offerings on line, portfolio management; financial planning, tax planning and

insurance services enable the investors to take better and well-considered decisions.

In the US, 82 per cent of the deals are done on line. The European on line broking

market is expected to be of $8 billions and is likely to raise in near future. In India,

currently on-line trading takes place through web sites. For example, if Reliance

Money client having an on-line Account wants to trade on on-line then he/she has to

visit the web-site of Reliance Money i.e. www.reliancemoney.com and then after

client can trade on on-line. This will also require interface with banks to facilitateinstant cash debit or credit and the depository system for debit or credit of securities.

Objectives of Internet Trading:

Increase transparency in the markets.

Reduce settlement risks due to open trades, by elimination of mismatches.

Provide management information system (MIS).





Introduce flexibility in system, to handle growing volumes easily and to

support nationwide expansion of market activity.

Besides, through Internet trading three fundamental objectives of securities

regulation can be easily achieved, these are: Investor protection, creation of a

fair and efficient market and, reduction of the systematic risks.

STOCK EXCHANGES

BSE:





India boasts of the oldest stock exchange in Asia -- the Bombay Stock Exchange is

125 years old. There are 23 recognized exchanges spread across the country, but a

process of consolidation is now under way. Many of the regional stock exchanges

have started aligning themselves with one or both of the two large exchanges (the

Bombay Stock Exchange and the National Stock Exchange) both of which have

VSAT networks that give them a nation wide reach.

NSE:

The National Stock Exchange is an unlisted for-profit company set up by some of the

leading financial institutions of India. Most of the remaining stock exchanges are

broker-owned (mutual) organizations, but the Bombay Stock Exchange is actively

considering demutualization. The Securities and Exchange Board of India (SEBI), the

apex regulator of the capital market has regulations that mandate a minimum number

of outside directors on the governing board and provide greater autonomy to the

professional executives in the day-to-day running of the exchange.

OVERVIEW ABOUT CENTRAL DEPOSITORY

SERVICES (INDIA) LIMITED (CDSL)

CDSL is the second depository set up by the Bombay Stock Exchange (BSE) in India.

It commenced its operations on March 22, 1999. It was set up BSE and other co –

sponsored with the net worth of Rs.104 corers. In it BSE has a 45 % stake while





others have 55 % stake. In the same year it has Five Stock Exchanges established

connectivity with it for offering trade in Demat securities and 765 companies signed

up with it to get their securities admitted for dematerialization. It has 13 DPs in 91

cities across 168 locations covering 320 cities. Other co – sponsored are as under.

State Bank of India

Bank of India

Bank of Baroda

HDFC Bank

CDSL has also attained membership of the Asia – Pacific Central Securities

Depository Group (ACG). ACG has 22 members including depositories from Japan,

Jog Kong, Singapore, Malaysia, Australia, and New Zealand. Membership of theorganization is expected to help CDSL enhancing its knowledge base and contributing

to the development of other member organizations in the best international practices,

settlement risk management, cross-border linkage and technological development.

This, in turn, would help CDSL to secure foreign institutional investors’ business

through their custodian.

Operations Performed by CDSL:

Carrying out actually share transactions

To do PSU disinvestments

To provide Centralized system at one e-space

To secure Foreign Institutional Investors’ business

Dematerialization of the Securities

Pledge creation in against the securities

Trading and settlement on day to day basis

Work as a custodian of its clients

OVERVIEW OF NATIONAL SECURITIES

DEPOSITORY LIMITED (NSDL)

In a span of about four years, investors have switched over to electronic (Demat)

settlement and NSDL stands at the center of this change.





NSDL is the first depository to be set up in India. It was incorporated on Dec. 12,

1995. IDBI the largest development bank in India, UTI the largest Indian mutual fund

and the NSE the largest stock exchange of India sponsored the setting of NSDL and

subscribed to the initial capital. NSDL commenced operations on Nov. 8, 1996.

The following organizations are the shareholders of NSDL

Industrial Development Bank of India

Unit Trust of India

National Stock Exchange

State Bank of India

Global Trust Bank Ltd.

Citibank NA.

Standard Chartered Bank.

HDFC Bank Ltd.

The Hong Kong and Shanghai Banking Corporation Ltd.

Deutsche Bank.

Dena Bank.

Canara Bank

Operations performed at a depository are as follows:

Holds Securities in accounts

Transfer Securities between accounts

Transfers without handling physical securities.

Safekeeping of securities

In the Depository:

All joint holders to sign instructions.

No minimum balance required.





Interest can be earned only be participating in Stock Lending Scheme.

Does not move balances in account without account holder’s authorization.

Signature and photograph of nominees to be provided.

Providing the safety of shares of the share holders which are in their Demataccount and in the Trading account.

Service standards of NSDL:

A DP has to deal in business with the following characteristics:

Sensitive and Demanding clients.

Intense competition on the price front due to which the profit margins are

under tremendous pressure.

Thin profit margins require high volume of clients/transactions for operating

the DP services profitably.

High volume of business is error prone, unless supported by appropriate

systems and quality of manpowers.

STOCK EXCHANGES IN INDIA

Table 2: Name & Address of Stock Exchanges in India





Name Address

THE BOMBAY STOCK EXCHANGE

Phiroze Jeejeebhoy Towers,

Dalal Street,

Mumbai- 400 001.

THE AHMEDABAD STOCK EXCHANGE

ASSOCIATION LTD,

Manek Chowk,

Ahmedabad - 380 001

BANGALORE STOCK EXCHANGE LTD,

'M' Block, First Floor,

Unity Building,

J.C. Road,

Bangalore - 560 002.

BHUBANESHWAR STOCK EXCHANGE ASSN.,

LTD,

217, Budhraja Building,

Jharpada Cuttack Road,

Bhuvaneswar,

Orissa - 751 006.

THE CULCUTTA STOCK EXCHANGE

ASSOCIATION LTD,

7, Lyons Range,

Calcutta - 700 001.

COCHIN STOCK EXCHANGE LTD.,

Veekshanam Road

P.B. 3529, Ernakulam,

Cochi - 682 035.

THE DELHI STOCK EXCHANGE ASSN. LTD.,3&4/4B, Asaf Ali Road,

New Delhi 110 002.

THE GAUHATI STOCK EXCHANGE LTD,

Saraf Building Annexe A.T.

Road,

Guwahati - 781 001.

THE HYDERABAD STOCK EXCHANGE LTD,Bank Street,

Hyderabad - 500 001.

JAIPUR STOCK EXCHANGE LTD,

Rajasthan Chamber

Bhawan,

M.I. Road,

Jaipur - 302 003.

KANARA STOCK EXCHANGE LTD. 4th Floor,

Rambhavan Complex,





Kodialbail,

Mangalore - 575 003.

THE LUDHIANA STOCK EXCHANGE

ASSN. LTD.

Lajpat Rai Market,

Clock Tower,

Ludhiana - 141 008.

MADRAS STOCK EXCHNAGE LTD.

'Exchange Building',

Post Box No.183,

11, Second Line Beach,

Chennai - 600 001

MADHYA PRADESH STOCK EXCHANGE LTD. 67, Bada Sarafa,

Indore - 452 002.

THE MAGADH STOCK EXCHANGE LTD.

Bihar Industries Assn.

Premises,

Sinha Library Road,

Patna - 800 001.

PUNE STOCK EXCHANGE LTD.

1177, Budhwar Peth,

Bank of Maharashtra Bldg.,

2nd Floor,

Bajirao Road,

Pune - 411 002.

SAURASHTRA KUTCH STOCK EXCHANGE

LTD.,Rajkot - 380 002.

THE UTTAR PRADESH STOCK

EXCHANGE ASSN. LTD.

Padam Towers,

14/113,Civil Lines,

Kanpur - 208 001

VADODARA STOCK EXCHANGE LTD.

101, Paradise Complex,

Tilak Toad,

Sayaji Gunj,

Vadodara - 390 005.

COIMBATORE STOCK EXCHANGE Chamber Tower,

8/732, Avvinashi Road,





Coimbatore 641 018.

MEERUT STOCK EXCHANGE LTD.

Kingsway Building,

345, Bombay Bazar,

Meerut

Cantonment - 250 001.

OTC EXCHANGE OF INDIA.

Maker Towers "F" Cuffe

Parade,

Bombay - 400 005.

THE NATIONAL STOCK EXCHANGE OF

INDIA LTD.

Mahindra Towers,

A-Wing, RBC, Worli,

Mumbai 18





Chart 1: Reliance Anil Dhirubhai Ambani Group’s Companies


RELIANCE ADA

GROUP

RELIANCE

CAPITAL

RELIANCE

COMMUNICATONS

RELIANCE

ENERGY

RELLIANCE

HEALTH

RELIANCE

ENTERTAINMENT




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).

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.

STRUCTURE OF RELIANCE- ADA GROUP





Chart 2: Structure of Reliance – ADA Group

GROUP PHILOSOPHY





VISION

We want to build a global enterprise for our share holders.

We want a great future of our country.

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

The means to realize their full potential

VALUES

Shareholder Interest:

We value the trust of shareholders, and keep their interests paramount in every

business decision we make, every choice we exercise.

People Care:

We possess no greater asset than the quality of our human capital and no greater

priority than the retention, growth and well-being of our vast pool of human talent.

Consumer Focus:

We rethink every business process, product and service from the standpoint of theconsumer – so as to exceed expectations at every touch point.

Excellence in Execution:





We believe in excellence of execution – in large, complex projects as much as small

everyday tasks. If something is worth doing, it is worth doing well.

Team Work:

The whole is greater than the sum of its parts; in our rapidly-changing knowledge

economy, organizations can prosper only by mobilizing diverse competencies, skill

sets and expertise; by imbibing the spirit of “thinking together” -- integration is the

rule, escalation is an exception.

Proactive Innovation:

We nurture innovation by breaking silos, encouraging cross-fertilization of ideas &

flexibility of roles and functions. We create an environment of accountability,

ownership and problem-solving –based on participative work ethic and leading-edge

research.

Leadership by Empowerment:

We believe leadership in the new economy is about consensus building, about givingup control; about enabling and empowering people down the line to take decisions in

their areas of operation and competence.

Social Responsibility:

We believe that organizations, like individuals, depend on the support of the

community for their survival and sustenance, and must repay this generosity in the

best way they can.

Respect for Competition:

We respect competition – because there’s more than one way

of doing things right. We can learn as much from the success

of others as from our own failures.

FOUNDER OF RELIANCE ADA GROUP





As with all great pioneers, there is more than one unique way of describing the

true genius of Dhirubhai: The corporate visionary, the unmatched strategist, the

proud patriot, the leader of men, the architect of India’s capital markets, and the

champion of shareholder interest.

But the role Dhirubhai cherished most was perhaps that of India’s greatest wealth

creator. In one lifetime, he built, starting from the proverbial scratch, India’s

largest private sector enterprise.

When Dhirubhai embarked on his first business venture, he had a seed capital of

barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he

converted this fledgling enterprise into a Rs 60,000 crore colossus—anachievement which earned Reliance a place on the global Fortune 500 list, the

first ever Indian private company to do so.

Dhirubhai is widely regarded as the father of India’s capital markets. In 1977,

when Reliance Textile Industries Limited first went public, the Indian stock

market was a place patronized by a small club of elite investors which dabbled in

a handful of stocks.

Undaunted, Dhirubhai managed to convince a large number of first-time retail

investors to participate in the unfolding Reliance story and put their hard-earned

money in the Reliance Textile IPO, promising them, in exchange for their trust,

substantial return on their investments. It was to be the start of one of great stories

of mutual respect and reciprocal gain in the Indian markets.

“Pursue your goals even in the face of difficulties, and convert adversities into

opportunity” – Dhirubhai Hirachand Ambani

CHAIRMAN’S PROFILE





Regarded as one of the foremost corporate leaders of

contemporary India, Anil Dhirubhai Ambani is the

Chairman of all listed Group companies, namely:

Reliance Communications, Reliance Capital, Reliance

Energy and Reliance Natural Resources Limited.

He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute

of Information and Communication Technology, Gandhi Nagar, Gujarat.

Till recently, he also held the post of Vice Chairman and Managing Director in

Reliance Industries Limited (RIL), India’s largest private sector enterprise.

Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was

centrally involved in every aspect of the company’s management over the next 22

years.

He is credited with having pioneered a number of path-breaking financial

innovations in the Indian capital markets. He spearheaded the country’s first forays

into the overseas capital markets with international public offerings of global

depositary receipts, convertibles and bonds. Starting in75 1991, he directed

Reliance Industries in its efforts to raise over US$ 2 billion. He also steered the 100-

year Yankee bond issue for the company in January 1997.

He is a member of:

Wharton Board of Overseers, the Wharton School, USA.

Central Advisory Committee, Central Electricity Regulatory Commission.

Board of Governors, Indian Institute of Management, Ahmedabad.

Awards and Achievements:

Conferred the ‘CEO of the Year 2004’ in the Plats Global Energy Awards.





Rated as one of ‘India’s Most Admired CEOs’ for the sixth consecutive

year in the Business Barons – TNS Mode opinion poll, 2004.

Conferred ‘The Entrepreneur of the Decade Award’ by the Bombay

Management Association, October 2002.

Awarded the First Wharton Indian Alumni Award by the Wharton India

Economic Forum (WIEF) in recognition of his contribution to the establishment

of Reliance as a global leader in many of its business areas, December 2001.

• Selected by Asia week magazine for its list of ‘Leaders of the Millennium

in Business and Finance’ and was introduced as the only ‘new hero’ in Business

and Finance from India, June 1999.

BOARD OF DIRECTORS





Mr. Rakesh Jhunjhunwala

Mr. Rajendra Chitale

Mr. C. P. Jain

COMPANY SECRETARY

Mr. V. R. Mohan

INTRODUCTION ABOUT RELIANCE CAPITAL

Reliance Capital Ltd is a part of the Reliance - Anil Dhirubhai Ambani Group.

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

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

banking companies, in terms of net worth.

Reliance Capital has interests in asset management and mutual funds, life and general

insurance, private equity and proprietary investments, stock broking and other

activities in financial services.

Business Overview:

RCL is registered as a depository participant with National Securities Depository Ltd

(NSDL) and Central Depository Services Ltd (CDSL) under the Securities and

Exchange Board of India (Depositories and Participants) Regulations, 1996. RCL has

sponsored the Reliance Mutual Fund within the framework of the Securities and





Exchange Board of India (Mutual Fund) Regulations, 1996.RCL primarily focuses on

funding projects in the infrastructure sector and supports the growth of its subsidiary

companies, Reliance Capital Asset Management Limited, Reliance Capital Trustee

Co. Limited, Reliance General Insurance Company Limited and Reliance Life

Insurance Company Limited. As of March 31, 2005, the company’s investment in

infrastructure projects stood at Rs. 1071 Crore. The investment portfolio of RCL is

structured in a way that realizes the highest post-tax return on its investments.

COMPANIES OF RELIANCE CAPITAL LTD.


RelianceMoney


http://www.reliancecapital.co.in/rcamportal/index.jsp



Chart 3: Companies under Reliance Capital Ltd.

Reliance Mutual Fund (RMF) is one of India’s leading Mutual Funds, with Assets

under Management (AUM) of Rs. 48,828 crore (AUM as on 30th Apr 2007) andInvestor over 3.1 million.

Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group, is one

of the fastest growing mutual funds in the country.

RMF offers investors a well-rounded portfolio of products to meet varying investor

requirements and has presence in 115 cities across the country.


Reliance MutualFund

RelianceInsurance




Reliance Mutual Fund constantly endeavors to launch innovative products and

customer service initiatives to increase value to investors.

Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management

Ltd., a wholly owned subsidiary of Reliance Capital Ltd.

Reliance Mutual Fund schemes are divided into three categories as below:

1. Equity / Growth Schemes

2. Debt / Income Schemes

3. Sector Specific Schemes

EQUITY / GROWTH SCHEMES

, capital appreciation, etc. and the investors may choose an option depending The aim

of growth funds is to provide capital appreciation over the medium to Long - term.

Such schemes normally invest a major part of their corpus in equities and

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

like dividend option on their preferences. The mutual funds also allow the investors to

change the options at a later date. Growth schemes are good for investors having a

long-term outlook seeking appreciation over a period of time. Types of Equity

Schemes are as follows:

Reliance Equity Fund

Reliance Tax Saver (ELSS) Fund

Reliance Equity Opportunities Fund

Reliance Vision Fund

Reliance Growth Fund





Reliance Index Fund

Reliance NRI Equity Fund

DEBT / INCOME SCHEMES

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

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

debentures, Government securities and money market instruments. Such funds are

less risky compared to equity schemes. These funds are not affected because of

fluctuations in equity markets. Types of Debt Schemes are as follows:

Reliance Monthly Income Plan

Reliance Gilt Securities Fund - Short Term Gilt Plan & Long Term Gilt

Plan

Reliance Income Fund

Reliance Medium Term Fund

Reliance Short Term Fund

Reliance Liquid Fund

Reliance Fixed Term Scheme





Reliance Floating Rate Fund

Reliance NRI Income Fund

Reliance Fixed Maturity Fund - Series I

Reliance Fixed Maturity Fund - Series II

Reliance Liquidity Fund

Reliance Regular Savings Fund

SECTOR SPECIFIC SCHEMES

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

industries as specified in the offer documents. E.g. Pharmaceuticals, Software, Fast

Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds

are dependent on the performance of the respective sectors. While these funds may

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

Sector Specific Schemes are as follows:

Reliance Banking Fund

Reliance Diversified Power Sector Fund

Reliance Pharmacy Fund

Reliance Media & Entertainment Fund





GOALS

Emerge as transnational Life Insurer of global scale and standard.

Achieve impeccable reputation and credentials through best business

practices.

Vision: Empowering everyone live their dreams.

Mission: Create unmatched value for everyone through dependable,

effective, transparent and profitable life insurance and pension plans.

Guiding Principles:

Customer Care and Satisfaction

Corporate Governance

Creativity and Innovation

Competitiveness

PRODUCTS

1. Individual Plans

Employee Benefits Plans

INDIVIDUAL PLANS

SAVINGS:

Reliance Endowment Plan

Reliance Special Endowment Plan

Reliance Cash flow Plan

Reliance Child Plan

Reliance Whole life Plan

Reliance Connect 2 Life Plan

RETIREMENT:





Reliance Golden Years Plan

Reliance Golden Years Plan Value

Reliance Golden Years Plan Plus

UNIT LINKED:

Reliance Automatic Investment Plan

Reliance Money Guarantee Plan

Reliance Market Return Plan

RISK / PROTECTION:

Reliance Term Plan

Reliance Simple Term Plan

Reliance Special Term Plan

Reliance Credit Guardian Plan

Reliance Special Credit Guardian Plan

EMPLOYEE BENEFIT PLANS

Risk:

Reliance Group Term Assurance Policy

Reliance EDLI Scheme

PENSIONS:

Reliance Group Gratuity Policy

Reliance Group Superannuation Policy





Reliance General Insurance, a Subsidiary of Reliance Capital, is one of the first non-

life companies to get the license from the IRDA. RGICL offers an exhaustive range of

insurance products that covers most risks including Property, Marine, Casualty and

Liability.

VISION

To be an insurer of World Standards and the most preferred choice for clientele at the

domestic and global level.

MISSION





Our Mission is to keep the customer satisfaction as focal point of all our operations,

adopt the best international practices in underwriting, claims and customer service, be

the most innovative in product development, establish presence all over India, ensure

sustained value addition to all stake holders and to uphold Corporate Value &

Corporate Governance.

OBJECTIVE

Make affordable insurance accessible to all

Keep customer as focal point for all operations

Protect policy holders interests

Adopt best international practices in claims, underwriting and policy servicing

Be the most innovative in product development

Establish Pan India presence

VALUE PROPOSITIONS

Risk Evaluation: Provide expertise in risk evaluation and risk mitigation leading to

the most appropriate risk transfer solution.

Post sales services: Differentiate on service parameters by ensuring prompt and

correct documentation& fair, transparent, speedy claims settlement.

New products: Introduce innovative products suited to specific market segments.

Training: Extensive training to the employees involved in underwriting and claims to

ensure availability of a varied experienced and competent team to cater to the

customer needs.

Technology: Use IT as a means to provide for a far superior customer experience in

terms of access, speed and simplicity.





Reinsurance backing: Apart from using capacity of the national reinsure, establish

relationships with the best reinsures across the world.

PRODUCTS

Health:

Individual Mediclaim

Group Mediclaim

Reliance Health Policy

Personal Accident:

Personal Accident

Group Personal Accident

Fire:

Standard Fire and Special Perils

Consequential Loss (fire)

Industrial all risks

Engineering:

Storage-cum-Erection

Contractor’s All Risks

Contractor’s Plan and Machinery

Machinery Breakdown Insurance

Machinery Loss of Profit Insurance

Boiler and Pressure Plant Insurance

Electronic Equipment InsuranceMarine:

Marine Cargo Insurance

Motor:

Private Car Comprehensive

Liability:

Director and Officers Liability

Public Liability (Act)

Public Liability





Product Liability

Professional Indemnity

Workmen’s Compensation

Miscellaneous:

Industry Care

Commercial Care

Office Package

Fidelity Guarantee

Burglary and Housebreaking

Money Insurance

Householder’s Package

Shopkeeper’s Package

Travel:

Individual and Family

Asia

Student

Corporate

INTRODCTION

Reliance Money Ltd. is a subsidiary of Reliance Capital, Which belongs to Reliance

ADA Group. Reliance Money is a financial transaction platform offering customers a

wide range of classes to diversify their portfolio. Through Reliance Money,

Customers would be able to transact in Equity, Derivatives, Commodities, Forex,

IPO’s, Mutual Funds and Insurance.





The company is in the process of launching a comprehensive financial portal enabling

to carry out on-line trading and investment activities in a secured, cost-effective and

in convenient manner.

To enable wider participation, Reliance Money also offers the convenience of off-line

trading through its branches, call & trade facility, franchisee network and other

technically a user-friendly methods.

ABOUT COMPANY

Reliance Money is a comprehensive electronic transaction platform offering a wide

range of asset classes. Its endeavor is to change the way India transacts in financial

markets and avails financial services. Reliance Money is a single window, enabling

you to access, amongst others in Equities, Equity & Commodities Derivatives, Mutual

Funds, IPO’s, Life & General Insurance products, Offshore Investments, Money

Transfer, Money Changing and Credit Cards. In short, Reliance Money is a

“Single window for all your financial transaction needs”

RELIANCE MONEY – TRANSACTING AND

INVESTING SIMPLIFIED

Reliance money is set to revolutionize the way India transacts and invests in financial

products and services.

Why a Reliance Money account makes sense?

It’s cost-effective, convince, easy to use and safe. Here’s a detailed look at the

Reliance Money benefits:

Cost-effective:

The fee charged by the affiliates of reliance money through whom the transaction can

be placed, is among the lowest charge in the present scenario. As an introductory





offer, pay a flat fee of just Rs. 500/- valid for 2months or specified transactional

value.

Illustrative table showing fee structure & validity limits.

Table 1: Fees & Validity structure

Convince:

You have the flexibility to access Reliance Money services in multiple ways

through:

Internet

Transaction Kiosks

Phone (Call & Transact)

All India network of associates





Secured:

Reliance Money provides secure access through an

electronic token that flashes a unique security

number every 32 seconds and ensures that the

number used 4 earlier transactions is discarded. The

number works as third level password that keeps

your account extra safe.

Single window for multiple products:

Through Reliance Money’s affiliates, one can transact in Equity, Equity &

Commodity Derivatives, Offshore Investment, Mutual Funds, IPO’s, Life Insurance,

General Insurance, Money Transfer, Money Changing and Credit Cards.

3-in-1 Access:

Reliance Money Integrated access to your banking, trading and demat account you

can transact without the hassle of writing cheques.

Demat Account with Reliance Capital:

Through Reliance Money, you get a hassle free demat account with reliance capital.

Annual maintenance charge for demat account is Rs 50/- per annum.





Other services:

Through the portal www.reliancemoney.com, it provides:

News:Live news from Capital Market and Dow Jones

Derivative/ F & O news, Commodity news and Forex news

Research Reports:

Research Report covers Industry reports, Company Reports, Stock reports,

Bullion reports, Forex Strategy.

Knowledge Centre:

Knowledge Centre provides knowledge on Equity, Derivatives, Mutual Fund,

Commodities, Forex, and IPO.

Customer Service:

It solves query of customer online and it provide faculties like application locator,

branch locator and downloading forms.


CHAIRMAN

CEO

Sales Head Finance &Legal Head

OperationHead

HR Head IT Head

Zonal Head(West)

Zonal Head(East)

Zonal Head(South)

RegionalManagers

Centremanagers

Centremanagers

Centremanagers

Customer serviceexecutives


BDE BDE BDEFranchisee Franchisee FranchiseeCST CST CST




Chart 4: Organization Structure

IMPORTANT PEOPLE IN ORGANIZATION

Chairman : Mr. Anil D. Ambani

CEO : Mr. Sudip Bandyopadhyay

Sales Head : Mr. Kapil Bali

Operation Head : Mr. Pawan Kothari

CS Head : Mr. Dipankar Mitra


Zonal Head(North)

RegionalManagers

RegionalManagers

RegionalManagers


BDE Franchisee CST


Centremanagers




Equity Broking Head : Mr. Ravi Doshi

Commodity Broking Head : Mr. Gurmeet Singh

Insurance Broking Head : Mr. S. Ravi

Finance & Legal Head : Mr. Jhuma Guha

IT Head : Mr. Kshitij Shah

Marketing and Comm. Head : Mr. Bosco D’Mello

Facilities Head : Mr. Manohar Chhabria

Infrastructure Head : Mr. Vivek Jalan

HR Head : Mr. Adrian Williams

RELIANCE MONEY SNAPSHOT

Reliance Money was registered on 17th June 2005.

Currently more then 850employees across 75 Location spread across the country.

Total no of offices: 42 (going up to 100 branches by end of 2007)

Reliance Money offers customer a fixed flat fee structure for trading as compared to

the conventional transaction based broking structure followed by the industry. In this

structure, customers need to pay Rs 500 for delivery trades up to Rs 10 lacks and/or

non-delivery trades of Rs 1 crore.

'Vasco's Dig pass will act as a 3rd level of security on Reliance Money website and

safeguard its customers' funds from hackers and phishing. The customer in addition to

his username and password will be required to type the number being flashed on his





personalized digital token at that given point in time, thus providing him with a

unique, foolproof login system'.

Reliance Money first company in India to provide trading through web-enabled retail

kiosks.

Almost 75,000 investors have logged in on to Reliance Money platform since

inception in the 3 months. Besides, everyday 2000 new investors are added daily.

Since inception in April, Reliance Money has already rolled out 2,500 kiosks and is

present in 700 cities and towns in India.

Reliance Money is First non-banking Company in the Private Sector to retail gold

coins in India with highest purity Gold coins of 24 carat with 999.9 purity to be

available in 5gm and 8gm across select Reliance Money and Reliance World outlets

from Valcambi through the tie-up.

Reliance Money ties up with Barista to install Reliance Money retail kiosks at its

outlets across the country.

Reliance Group launches Credit Cards in association with Citibank Reliance Credit

Card holders can receive up to 5 add-on cards at no additional charges, free email

statements, free alerts, and will be able to transfer money from one Visa Card to

another using Citibank Online.

Reliance money has to go for its foray in consumer finance and investment banking.

REGISTERED OFFICE:

Reliance Money Ltd,

6th floor, Nagin Mahal 82,

Veer Nariman Road,Church Gate,

Mumbai - 400 020

BRANCH OFFICE:

Reliance Money Ltd.

Raiji Nagar Park





Motibaug

Opt. icici bank

Junagadh

SWOT ANALYSIS

Every company does SWOT Analysis for monitoring their current position in the

market. They do this analysis for the purpose of identifying their strengths,

weaknesses, opportunities and threats.

Reliance Money SWOT Analysis can be elaborated as follows:

STRENGTH:

Highly qualified, young, dynamic and dedicated team of employees all having

rich experience in stock broking industry.

Strength of web trade is its strong features like 3 in 1 account.





Cost effective brokerage structure, highly convenient and security trading adds

to its features.

Customer centric by providing them services of call centers and help desk.

WEAKNESS:

As it is established since 1 year, people are not aware regarding its multiple

benefits.

The information technology has caused severe problems in trading that could

be a weakness to curb entry of its customers.

OPPORTUNITIES:

Due to its foray in various products it is having a greater opportunity of

occupying a greater market share and capturing the uncovered market.

THREATS:

Threats are always at your doorsteps when you are being placed as best. So is

the case with Reliance Money. The major threat is from ICICI web trade, HDFC, 5

paisa and sharekhan. They are the share trading firms who provide online trading. So

Reliance Money has to be always aware about them and not only these three but also

other competitors like Stockholding Corporation, Karvy, etc.





REGULATORY

INVIRONMENT

INFORMATION

REGULATORY ENVIRONMENT

The regulation of the Indian securities market is one of the best frame works of

regulation among the world. The securities and exchange board of India is the main

regulatory body for Indian securities market. SEBI was formed under the SEBI Act,1992 for the purpose of protecting the small investors’ rights and this organization has

been working for this purpose very efficiently and hardly. It has formed many rules

and by laws for efficient regulation of Indian securities market.

The four main legislations governing the securities market are

1. The Depositories Act, 1996

2. The SEBI Act, 1992

3. The Companies Act, 1956

4. The Securities Contracts (Regulation) Act, 1956





It deals with issue, allotment and transfer of securities and various aspects relating to

company management. It provides for standards of disclosure in the public issues,

particularly in the fields of company management and projects, information about

other listed companies under the same management, and management perception of

risk factors. It also regulates underwriting, the use of premium and discounts on issues

rights and bonus issues, payment of interest and dividends, supply of annual report

and other information.

The Securities Contracts (Regulation) Act, 1956:

It provides for direct and indirect control of virtually all aspects of the securities

trading including the running of stock exchanges which aims to prevent undesirable

transactions in securities. It gives the Central Government regulatory jurisdiction over

(i) stock exchanges through a process of recognition and continued supervision, (ii)

contracts in securities, (iii) listing of securities on stock exchanges. As a condition of

recognition, a stock exchange complies with the requirements prescribed by the

Central Government. The stock exchanges frame their own listing regulations in

consonance with the minimum listing criteria set out in the Rules.

RULES & REGULATIONS

The Government has framed rules under the SCRA, the SEBI Act and the

Depositories Act. The SEBI has framed regulations under these acts for registration

and regulation of the market intermediaries and for prevention of unfair trade

practices. Under these Acts, the Government and the SEBI issue notifications,

guidelines and circulars, which the market participants comply with. The SROs like

the stock exchanges have also laid down their rules and regulations for the market

participants to follow. The regulator has to ensure that the market participants abide

by and adhere to the rules and regulations prescribed to them. This in turn shall ensure

that the securities market continues to be a major source of finance for corporate and

government and also protect the interest of investors. The responsibility for regulating





the securities market is shared by the Department of Economic Affairs (DEA),

Department of Company Affairs (DCA), Reserve Bank of India (RBI) and SEBI. The

activities of all these agencies are coordinated by a High Level Committee on Capital

Markets. The orders of SEBI under the securities laws are applicable before the

Securities Appellate Tribunal (SAT). Most of the powers under the SCRA are

exercisable by DEA, while a few others by SEBI. The powers of DEA under SCRA

are also con-currently exercised by SEBI. The regulation of the contracts for sale and

purchase of securities, gold related securities, money market securities and securities

derived from these securities and ready forward contracts in debt securities are

exercised concurrently with the RBI. The SEBI Act and the Depositories Act are

mostly administered by SEBI. The rules under the securities laws are framed by

government and regulations by the SEBI. All rules are administered by SEBI. The

powers under the Companies Act relating to issue and transfer of securities and non

-payment of dividend are administered by SEBI in case of listed public companies

and public companies proposing to get their securities listed. The SROs ensure

compliance with their own rules as well as with the rules relevant for them under the

securities laws.

AMFI

With the increase in mutual fund players in India, a need for mutual fund association

in India was generated to function as a non-profit organization. Association of MutualFunds in India (AMFI) was incorporated on 22nd August, 1995. AMFI is an apex

body of all Asset Management Companies (AMC) which has been registered with

SEBI. Association of Mutual Funds India has brought down the Indian Mutual Fund

Industry to a professional and healthy market with ethical lines enhancing and

maintaining standards. It follows the principle of both protecting and promoting the

interests of mutual funds as well as their unit holders.





FUNCTIONAL AREA INFORMATION

• OPERATOPM DE[ARTMENT STUDY

• MARKETING DEPARTMENT STUDY

• FINANCE DEPARTMENT STUDY





• HUMAN RESOURCE DEPARTMENT STUDY





OPERTATIONS

DEPARTMENT

STUDY

CONTENTS





INTRODUCTION TO OPERATION MANAGEMENT

Operation is the basic activity of all the industrial units. All other activities

revolve around this activity. We can say that operation activity is nothing but the step

by step improvement of services technically or intellectually. The end output of the


NO. PARTICULAR PAGE

NO.

1. OPERATION DEPARTMENT INFORMATION 2

a. INTRODUCTION TO PRODUCTION

MANAGEMENT

3

b. ORGANISATION STRUCTURE 4

c. TYPES OF PLANT LAYOUT 21

d. SELECTION OF LOCATION-FACTORSAFFECTING IT

80

e. TYPES OF RAW MATERIAL AND

PROCUREMTNT

86

f. MATERIAL HANDELING SYSTEM 91

g. PRODUCTION, PLANNING AND CNTROL

SYSTEM

98

h. REPAIR AND MAINTENANCE 100

I. MANAGEMENT OF INDUSTRIAL SAFETY

k. INTRODUCTION TO MATERIAL MANAGEMENT

l. ROLE OF MATERIAL MANAGEMENT

m. PURCHASE DEPARTMENT

n. INVENTORY CONTROL METHODS

o. QUALITY ASSURANCE

59




operation activity is the creation of services for the satisfaction of human wants. The

operation activity is process by which the utility enhanced.

According to E Buffa,

“Operation is the process by which products or services are created.”

From the above definition we can say that it is simply the conversion of raw

material or intellectual capability of an employee in to finished products and services.

“Operation management is the process of planning, organizing, directing,

and controlling the activities of the operation function. Operation function is the

conversion of human efforts into complete service.”

In other words operation means creation of utilities and it covers all the

activities of procurement, allocation and utilization of the resources such as

employees, energy, materials, equipment, machinery etc. Operation must be operated

in an economic and in efficient manner because cost of operation is a vital factor in

facing market competition and in ensuring normal profit or return on the investment.

Production management, which was formerly considered as manufacturing

management, only now after induction of services into its scope, is broadly known as

Operational Management. Operation of the company is done at every branch of the

company and handled by it’s had office from Mumbai.

LOCATION DETAILS

Reliance Money is one of growing stock broking company in India with the help of its

huge platform. It provides equity based products like derivatives, research, depository,

equities etc. with the help of its

70 share branches located in metropolitan cities.

More than 500 franchisees





More than 1000 remissars working all over India.

Reliance Money branches and franchises are located in the metro cities and cosmos

cities other developing cities of India. The location is decided on the basis of mass of

customers, available workforce and available infrastructure facilities. In addition to

that, competitor’s location is also taken into consideration.

JUNAGADH is selected as one of the promising locations business who gives 40% of

whole business in Gujarat.

Reliance Money Registered office:

Reliance Money Ltd,

6th floor, Nagin Mahal 82,

Veer Nariman Road,

Church Gate,

Mumbai 400 020

Branch Address:

Reliance Money Ltd.

Raiji Nagar Park

Motibaug

Opt. icici bank

Junagadh

LAYOUT DETAILS

Reliance money Branch consists of:





Centre Manager Cabin: Here all the business work and important decisions are

taken with a personal desktop.

Customer Service Executive Desk: The customers are attended on this desk

and all the queries regarding them are solved on this desk with a personal desktop.

BDE’s Desk: The BDE’s are provided with the desktop for preparing a MIS for the

business preformed by them.

Guest Area: The entire guests are requested to be sitted in the guest area

comprising of the Sofa.

Kiosks: An innovative eye will catch you while one sees transactions Kiosks which

are fitted on the wall and which are positioned on other side. This kiosk is meant for

carrying out trading to the investors.

PROCUREMENT AND MATERIAL HANDLING

DETAILS

There is inflow of material like Forms, Advertisement material, policy papers, brochures. All the material is first inwarded by the Office Boy in the inward register





and the Material is sorted according to addressed. In the same way all the Outward

Material is first recorded in the outward and then it is packed for sending. All the

confidential material is handled by CSE’s according to its importance. All important

documents like Cheques and duly signed by the receiving authority and a photocopy

of it is kept.

Maintenance:

The maintenance of all the important is important aspect. The Office boy manages all

documents, which are of regular purpose. All the important documents are maintained

by the customer service executive.

Store Management – DP secure system:

DP Secure System is software that stores the customers’ data in a digital file system. It

connects all the branches of Reliance Money at national level. The customer’s

address, their user ID for the concern demats accounts etc. have been stored in this file

system as soon as they register their name with Reliance Money.

This type of digital file system is very economic and convenient because one can

retrieve the customer data as and when it requires. However, other important

documents and bills are maintained through file system.

Moreover the day to day regular information is stored in MIS Raising from a Small

Query to all purchases and Sales. All the DATA is stored in the centralized way.

OPERATION STRATEGY





The main aim of the operations strategy at Reliance Money is that the efficiency of the

organization and high level of desired outputs with low costs, i.e., productivity with

effectiveness. Quality should be high and consistent in delivering services; Flexibility

is related with fast introduction of new services and providing a wide range to select

an option to the customer. The process of operations, capacity/ability of the

organization, competitive advantages, vertical integration and the infrastructure

created by the firm facilitate this.

Reliance Money plans the strategies to get a working plan from it and the planning is

done from top-to-bottom level, i.e., national level, regional level, divisional level and

the branch level planning is carried out by the managers.

In this way, the Operations are managed with the best efforts in a direction that is to

facilitate future plans by achieving success in time and create milestones in the industry by

making the company driven by values and excellence.





MARKETING

DEPARTMENTSTUDY

CONTENTS





PRODUCT OFFERINGS YUSUFJAY AYUB KHAN H.

NO. PARTICULAR PAGE

NO.

1. MARKETING DEPARTMENT

INFORMATION

2

INTRODUCTION TO MARKETING

MANAGEMENT

ORGANISATION STRUCTURE

PRODUCTS

• PRODUCT MIX (product line, width, length, depth)

• PRODUCT LIFE CYCLE

• NEW PRODUCT DEVELOPMENT

• BRANDING AND PACKAGING

PRICING

• MEHTODS AND STRATEGIES

PROMOTION MIX

• ADVERTISING (media, budget, types, appeal)

• SALES PROMOTION

• PUBLICITY

• PERSONAL SELLING (network, methods)

CHANNEL MANAGEMENT

• VERIOUS CHANNELS

• NETWORK SELECTION

• CHANNEL CO-OPERATION

• CONFLICT

LEGAL AND RECENT ISSUE RELETED WITH

MARKETING

66




1. EQUITY

2. DERIVATIVES

3. COMMODITY

4. MUTUAL FUNDS

5. OFFSHORE INVESTMENT

6. LIFE AND GENERAL INSURANCE

7. MONEY TRANSFER 8. IPO

9. PORT FOLIO MANAGEMENT SERVICES

10. FOREX

1. EQUITY

Reliance Money offers you various options while trading in shares.

Cash Trading: This is a delivery based trading system, which is generally done with

the intention of taking delivery of shares.


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Margin Trading: You can also do an intra-settlement trading up to 3 to 4 times your

available funds, wherein you take long buy/ short sell positions in stocks with the

intention of squaring off the position within the same day settlement cycle.

BTST: Buy Today Sell Tomorrow (BTST) is a facility that allows you to sell shares

even on 1st and 2nd day after the buy order date, without you having to wait for the

receipt of shares into your demat account.

Trading on NSE/BSE:

Through reliancemoney.com, you can trade on NSE as well as BSE.

Market Order: You could trade by placing market orders during market hours that

allows you to trade at the best obtainable price in the market at the time of execution

of the order.

Limit Order: Allows you to place a buy/sell order at a price defined by you. The

execution can happen at a price more favorable than the price, which is defined by

you, limit orders can be placed by you during holidays & non market hours too.

DERIVATIVES

FUTURES:

Through reliancemoney.com, you can now trade in index and stock futures on the

NSE. In futures trading, you take buy/sell positions in index or stock(s) contracts

having a longer contract period of up to 3 months.


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Trading in FUTURES is simple. If, during the course of the contract life, the price

moves in your favour (i.e. rises in case you have a buy position or falls in case you

have a sell position), you make a profit.

Presently only selected stocks, which meet the criteria on liquidity and volume, have

been enabled for futures trading.

Calculate Index and Know your Margin are tools to help you in calculating your

margin requirements and also the index & stock price movements.

OPTIONS:

An option is a contract, which gives the buyer the right to buy or sell shares at a

specific price, on or before a specific date. For this, the buyer has to pay to the seller

some money, which is called premium. There is no obligation on the buyer to

complete the transaction if the price is not favorable to him.

To take the buy/sell position on index/stock options, you have to place certain

percentage of order value as margin. With options trading, you can leverage on your

trading limit by taking buy/sell positions much more than what you could have takenin cash segment.

The Buyer of a Call Option has the Right but not the Obligation to Purchase the

Underlying Asset at the specified strike price by paying a premium whereas the Seller

of the Call has the obligation of selling the Underlying Asset at the specified Strike

price.

The Buyer of a Put Option has the Right but not the Obligation to Sell the

Underlying Asset at the specified strike price by paying a premium whereas the Seller

of the Put has the obligation of buying the Underlying Asset at the specified Strike

price.

By paying lesser amount of premium, you can create positions under OPTIONS and

take advantage of more trading opportunities.

MUTUAL FUND





CONCEPT OF MUTUAL FUNDS

A Mutual Fund is a trust that pools the savings of a number of investors who share a

common financial goal. The money thus collected is then invested in capital market

instruments such as shares, debentures and other securities. The income earnedthrough these investments and the capital appreciations realized are shared by its unit

holders in proportion to the number of units owned by them. Thus a Mutual Fund is

the most suitable investment for the common man as it offers an opportunity to invest

in a diversified, professionally managed basket of securities at a relatively low cost.

IN RELIANCE MONEY

Reliancemoney.com brings you the same convenience while investing in Mutual

funds also - Hassle free and Paperless Investing.

You can invest in mutual funds without the hassles of filling application forms or any

other paperwork. You need no signatures or proof of identity for investing.

Once you place a request for investing in a particular fund, there are no manual

processes involved. Your bank funds are automatically debited or credited while

simultaneously crediting or debiting your unit holdings.

You also get control over your investments with online order confirmations and order

status tracking. Get to know the performance of your investments through online

updating of MF portfolio with current NAV.

Reliancemoney.com offers you various options while investing in

Mutual Funds:

Purchase: You may invest or purchase Reliance Mutual Fund, Prudential ICICI

Mutual Fund, JP Morgan Mutual Fund, Alliance Mutual Fund, Franklin Templeton

Mutual Fund, Sundaram Mutual Fund, Birla Sun Life Mutual Fund, HDFC Mutual

Fund, SBI Mutual Fund, Tata AIG Mutual Fund and Standard Chartered Mutual Fund

without the hassles of filling application forms.

Redemption: In addition to giving hassle-free paperless redemption, it offers faster

liquidity. You can redeem the mutual fund units through reliancemoney.com. The





determined. Exchange rates are the mechanisms by which world currencies are tied

together in the global marketplace, providing the price of one currency in the terms of

another.

Like in any another market, demand and supply determine the price of currency. At

any point of time in any given country, the exchange rate is determined by the

interaction of demand for foreign currency and the corresponding supply for foreign

currency. Thus, the exchange rate is the equilibrium price determined by demand and

supply considerations.

Until the late 1990’s, large financial institutions dominated the Forex market. Over

the last several years the market has witnessed a dramatic evolution, with independent

firms offering direct access to the forex market via internet enabled trading platforms.

Savvy individual investors are now tapping into the Forex markets significant profit

potential, with access to the same pricing, market data and tools used by the

institutions, hedge funds and professional traders.

Today, there are several Global Brokers dealers registered with regulatory bodies in

different countries, offering Retail Forex to the clientele which is generally spread

across 100-110countries. Reliance money is one such broker which is permitted to

trade in Forex on India.

The forex market is an over the counter market with no centralized exchange. Traders

have a choice between firms that offer trade- clearing services. There is no centre

location where trade occurs, i.e. It is a very decentralize structure.

LIFE AND GENERAL INSURANCE

What Is Life Insurance?

Life insurance is a contract that pledges payment of an amount to the person assured

(or his nominee) on the happening of the event insured against.

The contract is valid for payment of the insured amount during:

The date of maturity, or





Specified dates at periodic intervals, or

Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium

periodically to the Corporation by the policyholder. Life insurance is universally

acknowledged to be an institution, which eliminates 'risk', substituting certainty for

uncertainty and comes to the timely aid of the family in the unfortunate event of death

of the breadwinner.

By and large, life insurance is civilization’s partial solution to the problems caused by

death. Life insurance, in short, is concerned with two hazards that stand across the

life-path of every person.

Reliance Money Offers Life Insurance and General Insurance to its customers.

Life insurance helps Provide financial assurance & security for your dependents &

loved ones. It is an important part of the financial planning bouquet for all individuals

& families. Life insurance products offer comprehensive financial solutions which

besides offering financial security also provide opportunity for saving, investment &

tax planning.

It offers the Life insurance of Reliance Life insurance and TATA AIG Insurance.

Reliance General Insurance, a Subsidiary of Reliance Capital, is one of the first non-

life companies to get the license from the IRDA. RGICL offers an exhaustive range of

insurance products that covers most risks including Property, Marine, Casualty and

Liability.

MONEY TRANSFER

Technology has advanced so much that it has now become easier to exchange money,

access it as any currency in any part of the world. As a global phenomenon, new

financial institutions have emerged to make money transfers simple through the

internet.

Most of the money transfers are done by NRIs who wish to send money back home to

India. Indian and foreign banks are now actively involved in getting more customers

to hit their websites to garner more business. One can have single or joint accounts

and have fixed deposits.





Some charges connected to exchange rate will be applicable. If necessary one has to

find out the rates of the day to know how much money will be deducted.

Reliance Money with western union money transfer has started a subsidiary company

of reliance money known as ‘TRAVEL MATE’ for easy transfer of money.

INNITIAL PUBLIC OFFERINGS (IPO)

You could also invest in Initial Public Offers (IPO’s) and Bonds online without going

through the hassles of filling ANY application form/ paperwork.

Get in-depth analyses of new IPO’s issues (Initial Public Offerings) which are about

the market and analysis on these. IPO calendar, recent IPO listings, prospectus/offer

documents, and IPO analysis are few of the features, which help you, keep on top of

the IPO markets.

PERSONAL FINANCE





Use our Personal Finance section and get hold of tools that can help you plan your

investments, retirement, tax etc. Analyze your risk profile through the risk analyzer

and get a suitable investment portfolio plan using asset allocator.

CUSTOMER SERVICE FEATURES

With reliancemoney.com you can trouble shoot all your problems online. Address

your trading queries on-line through "Easy Mail". You can view and change your

profile or password on-line through General Profile option. Get details of Reliance

money Centers, our sales and service offices, across India through branch locator.

View your account statement and bill summary of your transactions online using bills

& accounts. View your digital contract notes instantly. View various charges through

the fee schedule option. Give your feedback or viewpoint through the viewpoint

online. Enroll yourself for various Reliance direct workshops through register for

customer sessions.

PORTFOLIO MANAGEMENT SERVICES (PMS)

1. What is PMS?

As you drive towards your objective of creating wealth, you need to employ the right

investment vehicles, at the right time. Given the unpredictable nature of equity

markets, staying on course requires expert maneuvering, time and effort.

That's where Portfolio Management comes in. It gives your portfolio the edge by

skillfully sifting through available investment opportunities to help you reduce risk

and maximize your returns; even as you are left with ample time to focus on more pressing matters.





Portfolio management is all about strengths, weaknesses, opportunities and threats in

the choice of debt vs. equity, domestic vs. international, growth vs. safety, and many

other tradeoffs encountered in the attempt to maximize return at a given appetite for

risk.

2. Who is it for?

Our portfolio management service is well suited for high-net worth customers:

• who are investing in Indian equities

•

who desire create wealth over longer period• who appreciate a higher level of service

3. Who can sign up for PMS?

Any one of the following can sign up for PMS

• Resident Individuals (Minimum investment is Rs.5,10,000)

• Non-Resident/PIO (Minimum investment is USD 50,000 / Rs 20 Lacs)

• Hindu Undivided Families (HUF)

• Association of Persons

• Limited Companies Trust

• Partnership Firms

• Societies

4. How safe are my securities under the Portfolio Management

Service?





With a view to create transparency in reporting standards of portfolio management

arena, we have appointed Deutsche Bank for custody banking and settlement

Functions of all our Portfolio Management Services.

5. How will I know my tax status?

We expect all clients to consult their tax consultant before investing into any form of

securities. At Reliance Money, we give each client an audited tax statement of his

portfolio annually. The same can be used when you file your returns.

6. Do this PMS generate guaranteed returns? IF not, what are the

expected returns?

Reliance Money offers various schemes to suit individual investment objectives. As

per regulations governing Portfolio Management Services in India, neither capital nor

returns can be guaranteed. We shall endeavor to outperform the benchmark indices

like Nifty but there can be no guarantee or certainty of the same. We believe, over

long term, equities' performance will track corporate performance. We expect India's

GDP to grow at 7-8% p.a. in real terms; or 12-13% p.a. in nominal terms. Therefore

historical trends indicate that well managed portfolios in Indian equities should give

minimum 20-25% p.a. returns.

7. What is the time horizon and is there a lock-in period?

In most of our schemes there is no lock-in period and the ideal time horizon for an

equity portfolio is at least 18-24 months.





8. After the account opening procedures are completed, can a third

party fund my account?

Only the account holder can deposit funds for PMS.

9. Is Lock-in period applicable to top up as well?

Top ups are not allowed during the lock in period of close ended schemes.

10. What are the charges for availing PMS?

The customers can opt for a flat fee or performance based fee. Detailed charge list will

be sent with the welcome kit. Brokerage, Service tax, Security transaction Tax &

Other Statutory levies as applicable

11. What is the mode of payment for the charges incurred for PMS

services?

Will get deducted from the customer’s funds on monthly basis for Fixed fee and

annually for Performance based fee.

12. Is there a reporting tool available online? If yes, what are the

various reports available for clients online and what is their

frequency?

The client can log on to www.reliancemoneypms.com with the user details provided

to him. Customer can constantly be in touch with his portfolio.

13. What is the minimum and maximum amount required to avail the

facility?

Resident clients can avail the services with a minimum initial investment of Rs.5.10

Lacs only. The NRI/PIO clients can sign up with minimum of USD 50000.There is no

upper limit on the investment.


http://www.reliancemoneypms.com/


http://www.reliancemoneypms.com/



14. Are Partial withdrawals allowed? If yes, any charges applicable

with the same?

Clients can withdraw the funds provided the balance does not go below Rs. 5 Lacs for

residents and USD 50000 for NRI/PIOs. Exit load will be applicable in the Close

ended Schemes as per the slab. On Open ended schemes no exit charges are

applicable.

15. Does a client need to get the agreement notarised? What will be

the Stamp Value?

The Stamping/Notarisation will be done by Reliance Securities. The clients just need

to sign the documents.

16. Are we accepting securities? If yes, then what is the valuation

norm for such securities?

We will accept securities (discretionary) and the valuation will be done on the sell

price of the security after the same has been transferred to our DP.

17. Is it mandatory to have a demat account? If yes, is it to be with

Reliance Money only or any other DP?

For PMS demat account is not mandatory. The trading is done in a pool account.

18. What are the requirements for NRI accounts?

The NRI/PIO clients need to have the following:

• NRE/NRO Saving account.





22. What will be the process of Security transfer for PMS and at what

value?

The customer would fill up the transfer of share for in the account opening form. It

will then be approved by the compliance of Reliance Securities and the same would

be informed back to the customer via email or FAX. The customer would then go tohis DP and after filling up the Instruction slip the transfer will get reflected in

Reliance Securities DP with Deutsche Bank. Then the securities would be sold off and

the customer will get the valuation at the SELLING PRICE of the security.

UPCOMING PRODUCTS

1. CREADIT CARDS

2. GOLD COINS

3. CONSUMER FINANCE





COMPETITORS

Reliance money has many competitors in the market. These competitors are alwaysthere to stop it from progressing. Some of the competitors are as follows:

ICICI direct.com

Angel Securities

Religare Securities

India Infoline

Kotak Securities

Motilal Oswal Securities

Sharekhan

IdbiPaisabuilder

H.D.F.C. Online

5 paise.com

Stock Holding Corporation Ltd.

Marvadi finance

Curvy consultancy

Other Stock Brokers

Now let’s see brief details of some competitors of Reliance Money.





ICICIdirect.com is a brokerage house of ICICI bank. It has a unique 3-in-1 account

that gives you:

Convenience: the 3-in-1 account integrates your banking, broking and demataccounts. 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.

Speed: You can now get the latest quotes of scripts on ICICIdirect.com and place an

order almost instantly.

Control: You can be assured that you have in fact placed an order at the price you

always wanted to, but may not have been able to do so till now. Thereby giving you

control over your own trades.

Independence: Instead of transferring monies to a broker's pool or towards deposits,

you can manage your own demat and bank accounts when you trade through

ICICIdirect.com.





Trust: ICICIdirect.com comes to you from ICICI, the organization trusted by millions

of Indians.

E-broking service of Angel Trade provides you on-line trading facilities on BSE /

NSE (Cash and F&O), NCDEX and MCX through our 3 unique e-trading software’s

especially designed for traders as well as investors .

Trading in securities / commodities using the internet platform is a convenient option.

We provide you an opportunity to trade on BSE / NSE (Cash and F&O), NCDEX and

MCX from the comfort of your home or office.

Our internet trading platform gives you state-of-the-art trading facility, order and trade

confirmation, e-contracts and 24X7 on-line web enabled back-office system at the

click of a button.





SALIENT FEATURES OF ANGEL TRADE

Multiple exchanges on a single screen: Online trading on BSE / NSE (Cash andF&O), MCX and NCDEX on a single screen.

Speed: We use the latest technology to generate efficient uptime and greater

stability to give you high speed.

Competitive brokerage rates: We believe in providing our clients the best value

added services at the most competitive brokerage rates.

Optimum margins: Angel gives you the trading exposure at optimum margin

level.

Online funds transfer: The clients enjoy the convenience of online transfer of

funds from their bank accounts, to the margin account of Angel, online.

Personalized service: HNI clients can avail of personalized advisory services

from our trained and experienced dealers, regarding trading opportunities.

Off line services: You are free to make a telephone call to any of our 71 well

equipped branches across the country.

Technology: Angel provides the latest infrastructure tools to support and integrate

the backend and front office functionalities.

Back office infrastructure: We provide an automated web enabled centralized

back-office whereby the clients can have access to their trade confirmation

reports, holding statement, their net position, the margins and the statement of

accounts and ledgers on a 24 X 7 basis.

Technical support: We remove technical difficulties through an online support

system manned by qualified professionals.





E - Contract notes cum bills: We provide contract notes cum bills in electronic

form resulting in ease of access to trades carried out by the clients on any

particular day.

Religare is driven by ethical and dynamic process for wealth creation. Based on this,

the company started its endeavour in the financial market.

Religare Enterprises Limited (A Ranbaxy Promoter Group Company) through

Religare Securities Limited, Religare Finvest Limited, Religare Commodities Limited

and Religare Insurance Broking Limited provides integrated financial solutions to itscorporate, retail and wealth management clients. Today, we provide various financial

services which include Investment Banking, Corporate Finance, Portfolio

Management Services, Equity & Commodity Broking, Insurance and Mutual Funds.

Plus, there’s a lot more to come your way.

Religare is proud of being a truly professional financial service provider managed by a

highly skilled team, who have proven track record in their respective domains.

Religare operations are managed by more than 3000 highly skilled professionals who

subscribe to Religare philosophy and are spread across its country wide branches.

Today, we have a growing network of more than 300 branches and more than 580

business partners spread across more than 300 cities/towns in India and a fully

operational international office at London.

Unlike a traditional broking firm, Religare group works on the philosophy of

partnering for wealth creation. We not only execute trades for our clients but also

provide them critical and timely investment advice. The growing list of financial





institutions with which Religare is empanelled as an approved broker is a reflection of

the high level service standard maintained by the company.

India Infoline Ltd is listed on both the leading stock exchanges in India, viz. the Stock

Exchange, Mumbai (BSE) and the National Stock Exchange (NSE). The India

Infoline group, comprising the holding company, India Infoline Ltd and its

subsidiaries, straddles the entire financial services space with offerings ranging from

Equity research, Equities and derivatives trading, Commodities trading, Portfolio

Management Services, Mutual Funds, Life Insurance, Fixed deposits.





Kotak Securities Ltd. is India's leading stock broking house with a market share of

around 8.5 % as on 31st March. Kotak Securities Ltd. has been the largest in IPO

distribution.

The company has a full-fledged research division involved in Macro Economic

studies, Sectoral research and Company Specific Equity Research combined with a

strong and well networked sales force which helps deliver current and up to date

market information and news.

Kotak Securities Ltd is also a depository participant with National Securities

Depository Limited (NSDL) and Central Depository Services Limited (CDSL),

providing dual benefit services wherein the investors can use the brokerage services of

the company for executing the transactions and the depository services for settling

them.

Kotak Securities has 195 branches servicing more than 2,20,000 customers and acoverage of 231 Cities. Kotaksecurities.com, the online division of Kotak Securities

Limited offers Internet Broking services and also online IPO and Mutual Fund

Investments.

Kotak Securities Limited manages assets over 2500 crores of Assets under

Management (AUM) .The portfolio Management Services provide top class service,

catering to the high end of the market. Portfolio Management from Kotak Securities





comes as an answer to those who would like to grow exponentially on the crest of the

stock market, with the backing of an expert.

Open an investing account and begin right away. Whether you are a beginner or an

expert trader, Kotak has different accounts to suit your needs:

Kotak Gateway: Ideal if you are just starting out in the equity markets.

Kotak Value: Tailor-made to meet the needs of the experienced investor.

Kotak Privilege Circle: A line up of premier trading services to suit your needs.

Kotak High Trader: Intra-day trading account with Auto-square off that lets you

take higher exposure.

Kotak Freeway: Unlimited trading for a fixed monthly fee.

Kotak Flat: Flat Fee Brokerage - First of its kind broking product offering fixed fee

brokerages.


http://www.kotaksecurities.com/accountsection/kotakgateway.html

http://www.kotaksecurities.com/accountsection/kotakvalue.html

http://www.kotaksecurities.com/accountsection/kotakprivilegecircle.html


http://www.kotaksecurities.com/accountsection/kotakhighertrader.html


http://www.kotaksecurities.com/accountsection/kotakfreeway.html




http://www.kotaksecurities.com/accountsection/kotakgateway.html

http://www.kotaksecurities.com/accountsection/kotakvalue.html







Motilal Oswal Financial Services is a well diversified financial services group having

businesses in securities, commodities, investment banking and venture capital.

Motilal Oswal Securities Limited (MOSL) has established itself as the Most

Independent Research - Local Brokerage (Asia Money Brokers’ Poll 2006). Our

Institutional Equities Division combines the efforts of our Research and Sales &

Trading departments to best serve clients' needs.

The retail business unit provides equity investment solutions to more than 50,000

investors through 270 outlets spanning 150 cities and 22 states. MOSL provides

Advice-Based Broking, Portfolio Management Services (PMS), E-Broking Services,Depository Services, Commodities Trading, and IPO and Mutual Fund Investment

Advisory Services, Retail Wealth Management,. Its Value PMS Scheme gave a 160%

post-tax return for the year ended March 2004.

With value investing at the core of its investment philosophy, a strong research team

consistently provides high-performance ideas.

Motilal Oswal Security’s equity research has been consistently ranked very highly in

surveys conducted by leading international publications like Asia money and

Institutional Investor. In Asia Money Brokers Poll 2003 MOSt has been rated as the

Best Domestic Research House - Mega Funds ,while in 2000 and 2002 it has been

rated as the Best Domestic Equity Research House and Second best among Indian

brokerage respectively.


http://www.motilaloswal.com/eag.htm

http://www.motilaloswal.com/pms.htm


http://www.motilaloswal.com/ebroking.htm

http://www.motilaloswal.com/depository.htm

http://www.motilaloswal.com/commodities/commodities.htm

http://www.motilaloswal.com/mutual.htm








http://www.motilaloswal.com/ebroking.htm

http://www.motilaloswal.com/depository.htm

http://www.motilaloswal.com/commodities/commodities.htm






Sharekhan, India’s leading stock broker is the retail arm of SSK I, and offers you

depository services and trade execution facilities for equities, derivatives and

commodities backed with investment advice tempered by decades of broking

experience. A research and analysis team is constantly working to track performance

and trends. Sharekhan has the trading products, which are having one of the highest

success rates in the industry. Sharekhan is having 578 share shops in 178 cities; the

largest chain of retail share shops in India is of Sharekhan.

In future, Sharekhan is planning to enter in Mutual funds, Insurance sector and

banking sector to expand beyond the market currently covered by it and it has started

MF (Mutual Funds) on priority basis but wants to grow in it.





OTHER STOCK BROKERS

We can also include the other Stock Brokers at the city level of each city in the list of

the competitors of Reliance Money. Because up to some extent they are also grabbing

the market of the Reliance Money in stock Broking field.

Marketing department executes functions to attract and keep customers and to

maximize the value derived from them. Also to satisfy the customer with prompt

services & meeting the customer expectations.

Two major factors of marketing are the recruitment of new customers and the

retention and expansion of relationships with existing customers

The various marketing philosophy followed at Reliance Money are:





The Offline customers are those who deal in the traditional way with the help of

brokers.

MARKET TARGETING

Long term traders are those traders who generally invest for long term i.e. for more

than one year. They generally trade on delivery base having a turnover around Rs.5

Lacks These traders includes professionals, businessman who does not trade too

frequently. Hence, Reliance money offers Flat fee of Rs.500 for 1 year to these kinds

of investors.

Position traders are those traders who trade on weekly basis. They generally trade on

delivery base and often are involved in intraday transactions. Their approximate

turnover for the month is around 50 Lacks. Reliance money offers Flat fee of Rs. 500

for 2 months to these investors.

Day traders are regular and heavy traders who generally work on several scripts to

gain up the profit in the market. They generally trade on intra-day and Futures andoptions basis. Their approximate turnover is 3 crores for 6 months. Reliance money

offers them Flat fee of Rs.1350 for 6 months to these investors.

For investors who heavily trade in intraday and future and options get an opportunity

to trade for Flat fee of Rs. 2500 for I year for transactions up to Rs. 6 crore.





POSITIONING STRATEGY

Reliance money has position itself as a house solving all one’s financial problems due

to its product portfolio.

“Where’s There is the Question of Your Money, The answer is Reliance Money”

Reliance Money is a financial transaction platform offering customers a wide

range of classes to diversify their portfolio. Through Reliance Money, Customers

would be able to transact in Equity, Derivatives, Commodities, Forex, IPO’s,Mutual Funds and Insurance.

Therefore Reliance money could be said that Reliance Money is A Unique solution

centre to solve your problems.

Moreover its cost effective, convenient, secure and easy access portal makes all this

possible.

Reliance Money directly suits to the customer who has bulks of money but lacks its

investment options.





CHANNEL OF DISTRIBUTION

Reliance Money offers multiple trading channels, to facilitate the buying and

selling of shares. You can walk into any of 70 share shop across 70 cities in

India to execute your orders.

Chart 8: Channel of Distribution

Franchises: Reliance money branches do not permit Share Trading at their places.

The power trade facilities are put up at the franchises outlets and the offline customers

are supposed to trade at the franchisees places. Franchisees earn profit by bringing

new customers and while share trading.

Remissars: The sub brokers or remissars who bring the online accounts and

business of Mutual funds and insurance. They are in turn paid commission for their

service.

Web World: Being part of ADAG’s family, a Relationship officer is partnered atWeb world to attend the walk-ins of the reliance money.

Business Development Executive: The BDE’s work under the centre manager

and are supposed to perform duties regarding of the AOF’s and mutual Funds. They

are outsourced.


CHANNELS OF DISTRIBUTION

FRANCHISEE REMISSARSWEB

WORLDS BDE




PRICING POLICY

Reliance Money is having different price structure for its different investors which are

as shown above in Product Detail section, Table No.1, Page No.24

Customers can avail following schemes:

Scheme No. 1:

Rs. 500 - here he gets a turnover limit of Rs.1 crore and time span of 2 months. He

can take maximum delivery of Rs.10 lacks.Scheme No. 2:


can take maximum delivery of Rs.30 lacks.

Scheme No. 3:


can take maximum delivery of Rs.60 lacks.

PROMOTIONAL SCHEME

As a promotional technique to penetrate in the market, Reliance money introduced a

scheme of RS.500 of Flat fee for 1 Year for turnover of RS.5 Lack. This technique can

be said as a trial base scheme for investors to check in the services, system and the

trading platform. Moreover this scheme is also useful for small investors and primary

market investors.





INNOVATIVE PRACTICE EMPLOYED

Reliance money has shown an innovative platform of share trading that is trading

through Kiosks. Moreover it provides a RSA Security token that is the third security

code besides user name and password.

MARKETING STRATEGIES

Marketing strategy adopted by Reliance money in this competitive era is market

pentrating strategy. Due to multiple stock broking houses providing various services

and Reliance money being a new entrant adopted a pricing strategy by charging flat

fee to its customers and giving them a convenient platform to perform its operations.





FINANCE

DEPARTMENT

STUDY





CONTENTS

Financial Aspect is the most important Aspect of the company. We can say that

Finance is the life blood for any organization. Without funds and its proper utilization


NO. PARTICULAR PAGE

NO.

1. FINANCE DEPARTMENT INFORMATION 2

a. INTRODUCTION TO FINANCIAL MANAGEMENT 3

b. ORGANISATION STRUCTURE 4

c. CAPITALISATION AND CAPITAL STRUCTURE 21

d. LEVERAGE ANALYSIS 80

e. CAPITAL BUDGETING 86

f. SOURCE OF FINANCE

• LONG TERM

• SHORT TERM

91

g. WORKING CAPITAL MANAGEMENT

• RECIEVABLES

• CASH

• INVENTORY

98

h. DIVIDEND POLICY

100




no company can function. So, proper utilization and effective management of funds

becomes the prime duty for any finance department.

All the financial aspects are handled at the Head office except the Cash Management

System regarding the cheques of accounting opening and the transaction basis

cheques.

BANKERS

Allahabad Bank

Punjab National Bank

HDFC Bank

State Bank of Hyderabad

ICICI Bank

Syndicate Bank

UTI Bank

City Bank

NOTE

Company has not given any kind of financial data. Therefore, I have not put any kind of

financial data in the finance department.





HUMAN

RESOUREDEPARTMENT

STUDY

CONTENTS





selection of Centre Managers and Customer Service Executive, the Zonal and

Regional HR Mangers in Consultation with the Regional Head.

But ADAG has a Powerful HR CULTURE. Currently there are 750 onrolls employees

in Reliance Money.

MISSION OF HR DEPARTMENT

Transparent HR policies and robust processes are driven by a single overarching.

Objective: To attract, nurture, grow and retain the best leadership talent in every

sector and industry is which we operate.

Reliance Money aim is to create a team of world beaters that is:

Committed to excellence in quality,

Focused on creation and enhancement of stakeholder value

Responsive to evolving business needs and challenges

Dedicated to uphold the core values of the Group

PROMISE

In order to achieve our objective, we offer our people...

Growth opportunities to expand leadership capabilities

True meritocracy and freedom to choose career paths

Opportunities to develop and hone leadership and functional capabilities

An entrepreneurial environment where people can pursue their dreams

Competitive compensation

OUR EXPECTATIONS

At Reliance - Anil Dhirubhai Ambani Group, we encourage our colleagues to take

leadership, at all levels of the organization, and participate in accelerating growth of

our businesses to build a formidable enterprise.

Leaders in Reliance - Anil Dhirubhai Ambani Group are expected to





Always keep the customers’ needs in mind and constantly innovate

Execute flawlessly and with speed

Sustain and strengthen the group’s spirit of entrepreneurship—taking ownership

and accountability for their actions

Leverage synergies to learn and build on the diverse experiences and skill sets of

our various businesses and teams

Create a true meritocracy with a pervasive commitment to transparent systems and

processes

MANPOWER PLANNING

Reliance Money, Being a growing organization, it is of utmost importance to

implement a correct manpower planning process. To ensure that appropriate personnel

are available to meet the requirements, HR manager is engaged in employment

planning by determining the current and future supplies and demands for centre

mangers cluster heads, customer service executives, business development executives

etc.

As it is expanding its offices and opening at certain locations it is having a ready

workforce to work at those locations. For E.G. Reliance Money is shortly opening in

Bhavnagar. Therefore, its CSE’s and CMT’s are already trained at Ahmedabad and

ready for working at Bhavnagar.

To meet the requirements, its first step is very correct.

RECRUITMENT

The process of Discovering potential Job candidate is a toughest on. In Reliance

Money, Recruitment is through two ways.

1. Internal Recruitment

2. External recruitment





Reliance money has on rolls only Centre managers, centre manger Trainee Customer

Service, Customer Service Trainee. Therefore it has to undertake recruitment for them

only. BDE’s are outsourced by two agencies i.e. Team Lease and Patrick’s Ltd.

For centre mangers the candidate is supposed to climb its first step, i.e., he should be

first centre manger Trainee. And similarly for Customer Service Executive, he should

be first Customer Service Trainee or person with 2 year of rich experience. Therefore

for centre manager the recruitment is generally through internal recruitment. For

centre manager trainee recruitment, Reliance Money goes for Campus recruitments

and private consultancy.

The recruitment advertisement is also given in The Economic times for recruitment of

its staff.

Similarly for cluster Heads and Regional Head the recruitment is done through

internal recruitment taking their performance, qualifications, years of experience etc.

The Business Development Executive are outsourced but are selected by the centre

mangers.

Thus, for different designations in the organization, the recruitment process set is

different.

Poll A Friend - A Special initiative is arranged if any employee Gives reference of

any candidate for recruitment and the candidate is selected then the employee gets

Rs.10000 of cash.

SELECTION

The Selection for any of the On Rolls position is done by a Formal interview with the

Zonal HR Manager and Regional Manager. The selection is done on the basis of the

Qualifications, Experience, and Experience Soft skills etc.

The Centre managers do the selection of the BDE’s.





TRAINING

1. Training for the new recruit:

Any new recruit is firstly inducted to the company and sent for T & D department that

is covered under HRD and T & D programmes makes employees aware about all the

activities/jobs within the department he/she is to be recruited.

The induction programmes of Reliance Money culture is designed with the following

objectives:

Provide an overview of the company's business and product portfolio.

Enable the new employee to understand the work culture and processes / systems.

Provide an opportunity to interact with his/her superiors/colleagues and enable

him to understand them better.

During induction, employees are:

Provided their own workspace

Given a copy of this Employee Handbook

Introduced to assignments related to their role

INDUCTION PROGRAMME





The induction programme is designed by the function heads along with the HR team.

The duration of the induction programme varies from two days to a week depending

upon the role on the new joinee. The induction programme in the company covers

three broad areas:

HR philosophy and practices:

Reliance Money values

Overview of HR policies, systems and practices

Overview of risk & compliance practices

About the job:

Key responsibilities and expectations of the job

Goal setting and performance measurements

Then the specific job training is provided at H/O and the person has to keep in touch

with the concerned department at H/O on internet because he/she has to solve many

conflicts arising in the investor's mind and to have an up-to-date information

regarding the procedures and any new facilities or policies to resolve the problems of

the clients. It is a must for each employee because the employee is the people by

whom the company gets its customers and retains them.

2. Training for existing employees:

At Reliance Money, it has been our endeavor to create a learning environment by

providing developmental opportunities for our employees. This training calendar is





another step in the same direction towards building individual & organizational

capabilities.

On the job Training is provided to the centre mangers and Customer services

executive’s regarding new process set or on introduction of some new products

through IP or centralized server.

Off the job training is provided to Centre mangers during their review meeting or

during the special training trip organized regarding some marketing initiatives. To the

CSE’s off the job training is provided regarding the call centre service, Dial and

Trade, AOF’s Checking, Online trading etc.

The centre manager is responsible for providing training to the BDE’s. Generally it is

provided on the job Training.

PERFORMANCE APPRAISAL

It is most important to measure the performance of the employees so that they could

easily move in employee grading charts and for differing them on salary packages.





A 360-degree feedback performance appraisal is done of the centre mangers by their

Regional Heads. The centre managers are measured on basis of their contributions of

AOF’s per month, mutual fund business. Life Insurance and General Insurance logins,

all this is measured against the target given in percentage terms.

For Customer service Executives, the measurement scale is updation of MIS,

Rejection less AOF’s, Processing of Query, DRF Maintenance, and Branch

Maintenance.

A review meet to measure the performance of all centre managers and Customer

Service Executives is done once in a quarter by Regional Head.

On the basis of the performance the Centre Managers and Customer Service

executives, the grades and Ranks are allocated to them.

For honouring outstanding performance of the employees, the annual session is

organized. Moreover the outperforming employees are given trips as their gifts.

FACILITIES GIVEN TO EMPLOYEES





We at Reliance Money would like to contribute towards enhancing our employees and

their family’s life by extending benefits that are of relevance and importance to our

employees. Here is the summarized form of the benefits that are available to our

employees.

Medi-claim insurance

Provident Fund

Gratuity

Accident Insurance

MAPIN registration

Web browsing and Internet usage

OTHER BENEFITS





Term Insurance Policy:

Reliance Money provides term insurance cover (death in case) to all employees.

Employee Marriage Gift Policy:

We believe that our employees are part of a Reliance Money family. Just as

employees are an integral part of all the developments and celebrations of Reliance

Money, we too would like to be a part of one of the most important event in the life of

our employee—Marriage.

The Employee Marriage Gift Policy is instrumental in showering our best wishes on

the newly married couple.

Medi-claim Policy:

Reliance Money provides Medi-claim cover to all employees. The detailed

information on the policy, relevant processes and the TPA (Third Party Administrator)

appointed by the company is attached in the annexure.

Employees have the option of covering their dependents under this policy for any

amount not exceeding the limit for the employee; however the cost of the same will

have to be borne by individual employees.

Travel Policy:

It is recognized that for many employees travel expenses are incurred in order to

further business objectives. Policies and guidelines are necessary to justify

reimbursable expenses incurred by company clients. In general, the quality of travel

accommodations, entertainment and related expenses is governed by what is

reasonable and appropriate to the business purpose involved.

This travel policy applies to all employees of the company. There are primarily two

categories of travel that you are required to undertake during the course of your

employment in the company:

Local travel

Domestic travel – Only for Directors

Local travel





Any travel within extended boundaries of your city of operation is taken as local

travel. Employees using personal cars on company business will be reimbursed at

Rs.6 per k.m. for a four-wheeler and Rs.3 per k.m. for a two-wheeler. To be

reimbursed for use of their personal car for business, travelers must provide their

expense report with details about the purpose of the trip, date and location, petrol

and/or diesel receipts and mileage.

Travel by higher mode should be for valid and compelling reasons and should be

approved by the immediate superior. For those using public transport (taxi, train, bus)

for local travel the immediate supervisor will have to approve the cost incurred.

Leave and Holiday Policy:

Reliance money provides the following types of leaves/holidays:

Holidays

Privilege leave

Maternity leave

Paternity leave

Holidays:

The Company will declare a list of 12 holidays every year based on the holidays

declared by the exchanges, bank holidays and regional festivals.

Privilege leave: 25 working days

Paternity leave: 2 working days

Maternity leave: 12 weeks

SEPARATION





Termination of employment is a difficult decision, both for the employee and the

organization.

Voluntary termination:

An employee is considered to have voluntarily terminated his/her employment with

Reliance Money when the employee:

Voluntarily resigns

Fails to return from vacation or from approved leave of absence as per the

scheduled time.

Employees who choose to resign are required to provide Reliance Money with the

appropriate notice period as specified in the employment terms or an appointment

letter.

Exit interview:

Employees leaving Reliance Money for any reason will go through an exit interview

procedure with the HR team. This interaction will provide the employee to express

views on his/her association with the organisation as well as provide feedback

regarding certain areas processes etc.





LIST OF CHARTS

Chart No. Detail Page No.01. Reliance ADAG Companies 04

02. Structure of Reliance ADAG 06

03. Companies under Reliance

Capital Ltd.

13

04. Organization Structure 27

05. Indian Financial System 45

06. Capital Market Process 48

07. Market Segmentation 78

08. Channel of distribution 80





LIST OF TABLES

Table No. Detail Page No.

01. Fees & Validity Structure 2402. Stock Exchanges in India 55





BIBLIOGRAPHY

BOOKS REFERED

Philip kottler, Marketing Management, Eleventh Edition, 2002, Prentice-Hall of

India, New Delhi

Chunavala & Patel, Production and Operations Management, Fifth Edition, 2003,

Himalaya Publishing House, Mumbai.

Telsang Martand, Industrial Engineering and Production Management, Second

Edition, 2002, S. Chand & Co. Ltd. New Delhi.

Ashwathappa K., Human Resource and Personnel Management, Fourth Edition,

2005, Tata McGraw-Hill Publishing Company Ltd., New Delhi





WEBSITES

www.reliancemoney.com

www.relianceadag.com

www.reliancecapital.co.in

www.icicidirect.com

www.angelbroking.com

www.sebi.com

www.google.com

www.kotaksecurities.com

www.amfiindia.com

http://www.reliancemoney.com/

http://www.relianceadag.com/

http://www.reliancecapital.co.in/

http://www.icicidirect.com/

http://www.angelbroking.com/

http://www.sebi.com/

http://www.google.com/

http://www.kotaksecurities.com/

http://www.amfiindia.com/


http://www.reliancemoney.com/

http://www.relianceadag.com/

http://www.reliancecapital.co.in/

http://www.icicidirect.com/

http://www.angelbroking.com/

http://www.sebi.com/

http://www.google.com/

http://www.kotaksecurities.com/

http://www.amfiindia.com/

khan bhai report

Documents