ANALYSIS OF RELIGARE ONLINE AND OFFLINE TRADING

A PROJECT REPORT2011

Submitted In Partial Fulfillment of the Requirement for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BYNAVIN MEHTA

ISBE(A)FD2

UNDER THE GUIDANCE OF MR. VIPUL GUPTA (BRANCH MANAGER)

IIPM SATBARI CAMPUS

1

2

Acknowledgement:

The completion of this project gives me an opportunity to convey my

regards to all those who helped me to reach a stage where I have the

confidence to launch my career in the competitive world of

management.

I am thankful to my Industry guide Mr.VIPUL GUPTA, & my faculty who

provided me the most needed guidance, suggestions and support to

make this project a wonderful reality.

NAVEEN KUMAR

3

TABLE OF CONTENT

1. ABSTRACT

2. PREFACE

3. ACKNOWLEDGEMENT

4. INTRODUCTION

4.1) About the project

4.2) About the company

5. MAIN TEXT

5.1) NSE

5.2) BSE

5.3) EQUITY TRADING

6. ABOUT THE PROJECT

6.1) RELIGARE ONLINE

6.1a) online trading

6.2) religare offline

7. RESEARCH METHODOLOGY

4

8. RESEARCH ANALYSIS

9. ANALYSIS AND INTERPRETATION

11. FINDINGS

12. RECOMMENDATIONS

13. ANALYSIS WITH CMPETITORS

14. CONCLUSION

15. LIMITATIONS

16. REFRENCES

17. ANNEXURES

5

ABSTRACT

Analysis of financial reports takes a very important role for further

course of action of any corporate or business entity, and this entire

project is related to analysis of business & financials of this

corporate entity and find out how this company did its operations.

As any financial report consist many heads for revenue as well as

expenditure and major role of any business analyst is to analyze the

business, make future plans and boost the performance of the

organization. As this company is conducting its operations mainly

from its stock trading activities like by online trading activities and

offline trading, so for any decision one has to analyze its each and

every small and big activity till now so that an intense idea can be

analyzed.

This project is directly related to analysis of Religare online and

offline, so that it can be observed how it did its operations in past

few periods and did its strategies pour any kind of growth in

financials as well as its other wings of business. As Religare

Securities Ltd. is in mainly online trading business and trying to

capture big market share in this area so in this report it has been

analyzed thoroughly in different categories so that an idea can be

taken of its performance broadly.

Purpose of this analysis is to provide a blueprint for its

upcoming operations and to look into its financial reports for its

performance in terms of numbers which is a very important

component for business analysis and financial reports show a real

picture of any business performance and also gives us an insight for

future course of action.

6

I was involved in selling DEMAT and trading accounts, the data of

prospective clients was given to me by the company, during that

time I also got the chance to interview them personally which

helped me to understand their needs.

The report covers the functional explanations of the concept of equity

trading in detail, the intricacies in the business of a stock broking firm. The

report includes a study on the existing clients in order to offer customized

services to its clients, a comparative study with the major players with

respect to the brokerage charged and a study on the new clients

addressing the needs and wants of the customers.

7

PREFACE

As part of this two year programmed leading to master of

business Administration, IIPM curriculum of which includes

both theoretical and practical orientation in specialized

areas In fulfillment of this objective, I joined the

organization Religare Securities Ltd, NOIDA. I was assigned

to make a report, on Analysis of religare online and offline.

There are many differences in theoretical study and

practical study. The theories are universally applicable but

when it comes practical. The situation is different for the

person who have theoretical knowledge.

So practical knowledge is essential for

understanding a problem, solve the problem and coming to

a conclusion.

8

Introduction:

About the project:

Problem recognition:

Considering the investment criteria for different customers and

the type of usage of each individual customer, it becomes a

challenge for the company to provide the right service to a

specific person.

Understanding the needs of customer becomes an important

aspect in capturing the untapped market share, and also in

retaining the existing customers.

9

As a lot of companies are into the stock broking business, it is very

essential for the company to be aware of the strategies adopted by

the major competitors, and what are the options available to the

clients and what are the services provided by the competitors.

Procedure followed:

Keeping in mind the objective of the study the following

procedure is followed to achieve the objective.

In order to offer customized services to the retail clients, the

existing clients and the new clients will be interviewed

personally which will help in understanding the needs of

customers in a better way.

The project will also include a comparative analysis with

competitors.

All the concepts studied during the course of study are given in

detail.

About the company:

10

Religare is one of the leading integrated financial services groups in

the country today, backed by a blue chip promoter pedigree and a

proven track record. Our businesses are broadly clubbed across three

key verticals, the Retail, Institutional and Wealth spectrums, catering

to a diverse and wide base of clients spread across the length and

breadth of the country. Structurally, all businesses are operated

through various subsidiaries held through the holding company,

Religare Enterprises Limited, which recently concluded its

resoundingly successful public offer.

The company offers a diverse bouquet of services ranging from

equities, commodities , insurance broking to wealth management,

portfolio management services, personal financial services,

investment banking and institutional broking services . Religare's

retail network spreads across the length and breadth of the country

with its presence through more than 1300 locations across more

than 400 cities and towns.

As part of its recent initiatives the group has also started expanding

globally. Religare has also successfully partnered with Aegon, one of

the global leaders to launch Life Insurance, Mutual Fund in India and

with Macquarie, for a Wealth Management joint venture.

11

The vision is to build Religare as a globally trusted brand in the

financial services domain and present it as the ‘Investment Gateway

of India’. All employees of the group , currently more than 10,000 in

number, ceaselessly strive to provide financial care driven by the

core values of diligence and transparency.

Brand Identity

Name

Religare is a Latin word that translates as 'to bind together'. This

name has been chosen to reflect the integrated nature of the

financial services the company offers. The name is intended to unite

and bring together the phenomenon of money and wealth to co-exist

and serve the interest of individuals and institutions, alike.

12

Symbol

The Religare name is paired with the symbol of a four-leaf clover.

The four-leaf clover is used to define the rare quality of good fortune

that is the aim of every financial plan. It has traditionally been

considered good fortune to find a single four leaf clover considering

that statistically one may need to search through over 10,000 three-

leaf clovers to even find one four leaf clover.

Each leaf of the four-leaf clover has a special meaning in the sphere of

Religare.

   

The first leaf of the clover represents Hope. The

aspirations to succeed. The dream of becoming. Of

new possibilities. It is the beginning of every step and

the foundations on which a person reaches for the

stars.

 

     The second leaf of the clover represents Trust. The

ability to place ones own faith in another. To have a

relationship as partners in a team. To accomplish a

given goal with the balance that brings satisfaction to

13

all not  in the binding but in the bond that is built.

  

The third leaf of the clover represents Care. The

secret ingredient that is the cement in every

relationship. The truth of feeling that underlines

sincerity and the triumph of diligence in every aspect.

From it springs true warmth of service and the ability

to adapt to evolving environments with consideration

to all.

 

   

The fourth and final leaf of the clover represents Good

Fortune. Signifying that rare ability to meld

opportunity and planning with circumstance to

generate those often looked for remunerative

moments of success.

 

    Hope. Trust. Care. Good fortune. All elements

perfectly combine in the emblematic and rare, four-

leaf clover to visually symbolize the values that bind

14

together and form the core of the Religare vision

Business Structure and Client Interface

Retail Spectrum-

To cater to a large number of retail clients by offering all products

under one roof through the Branch Network and Online mode

Equity and Commodity Trading

Personal Finance Services

Mutual Funds

Insurance

Saving Products

Personal Credit

Personal Loans

Loans against Shares

Online Investment Portal

Institutional Spectrum-

To Forge & build strong relationships with Corporate and Institutions

Institutional Equity Broking

15

Investment Banking

Merchant Banking

Transaction Advisory

Corporate Finance

Insurance Advisory

Wealth Spectrum –

To provide customized wealth advisory services to High Net worth

Individuals

Wealth Advisory Services

Portfolio Management Services

International Advisory Fund Management Services

Priority Equity Client Services

16

Group companies:

17

SUBSIDARIES OF RELIGARE.

(a) Religare Securities Limited

(b) Religare Finvest Limited

18

(c) Religare Commodities Limited

(d) Religare Insurance Broking Limited

(e) Religare Venture Capital Private Limited.

Key Events and Milestones

Year Events 1994 RSL received membership of the NSE as `stock

broker

2000 RSL received membership of the Futures and Options segment

of the NSE RSL received registration as `Depository Participant' with

NSDL

2001 RFL received registration as `non-banking financial institution

not accepting public deposits with RBI

2002 RSL received registration as `Portfolio Manager' from SEBI

2003 RSL received registration as `Depository Participant' with CDSL.

2004 RSL received membership of the BSE as `stock broker

RCL received membership of MCX as `trading-cum-clearing member

RCL received membership of NCDEX as `trading-cum-clearing member

2005 RFL received enrollment as `AMFI registered mutual fund advisor

2006 Establishment of representative office in London. RCL received

membership of NMCE. RIBL received licence from IRDA to act as

19

`composite broker'. Joint venture agreement with Aegon International

N.V. for carrying on the business of mutual fund asset

management.RSL received registration as `Merchant Banker in

Category - I from SEBI.

2007 RSL received membership of derivative segment of the BSE as

trading-cum-clearing member

Industr

y

: Finance -

General

BSE

Code

:

5329

15

NSE

Code

:

RELIGAR

E

Busines

s Group

: Ranbaxy

Group

Face

Valu

e

: Rs.

10.0

0

ISIN

No

:

INE621H

01010

Chairm

an /

: Mr. Malvinder

Mohan Singh

Mark

et

Lot

: 1

Mark

et

Cap

:

3039.67 

(Rs.Cr.)

Key Officials

Name

Designation

Malvinder Mohan Singh

Chairman / Chair Person

Sunil Godhwani

Managing Director & CEO

Ravi Batra

Company Secretary and Compliance Officer

20

Management Profile:

Mr. Sunil Godhwani,

Chief Executive Officer & Managing Director,

Religare enterprises Limited.

Background:

Sunil Godhwani has been Chief Executive Officer and Managing

Director of Religare Enterprise Limited since April 9, 2007. Mr.

Godhwani serves as a Managing Director of Fortis Financial Services

Limited Institute, Limited since April 15, 2002. Mr. Godhwani has

more than 20 years experience in business. Mr. Godhwani has been a

Director of Ranbaxy Laboratories Ltd., since April 27, 2007, Fortis

Financial Services Ltd. since July 2007 and Religare Enterprise

Limited since July 13, 2006. Mr. Godhwani is a Graduate in Chemical

21

Engineering and has a Master's Degree in Industrial Engineering and

Finance from Polytechnic New York.

. He served as a Managing Director of Religare Securities Institute,

Limited since April 15, 2002. Mr. Godhwani has more than 20 years

experience in business. Mr. Godhwani has been a Director of

Ranbaxy Laboratories Ltd., since April 27, 2007, Fortis Financial

Services Ltd. since July 2007 and Religare Enterprise Limited since

July 13, 2006. Mr. Godhwani is a Graduate in Chemical Engineering

and has a Master's Degree in Industrial Engineering and Finance

from Polytechnic New York.

Other Details

Business Group - Ranbaxy Group

Industry - Finance - General

BSE Code - 532915

NSE Code - RELIGAREEQ

Listings - BSE , NSE

ISIN No. - INE621H01010

Incorporation - 30/01/1984

Public Issue Date - 29/10/2007

22

BOARD OF DIRECTORS OF RELIGARE ENTERPRISES LTD.

You can view latest board of directors of the company.

S.N

oName Designation

1 Mr. R K Shetty Alternate Director

2 Capt. G P S Bhalla Alternate Director

3 Mr. Malvinder Mohan Singh Chairman / Chair Person

4Mr. Deepak Ramchand

Sabnani Independent Director

5 Mr. Padam Bahl Independent Director

6 Mr. J W Balani Independent Director

7 Mr. Sunil Godhwani Managing Director & CEO

8 Mr. Shivinder Mohan Singh Non Executive Director

9 Mr. Harpal Singh Non Executive Director

Key Executives

S.No Name Designation

23

1 Mr.Sunil Godhwani Managing Director & CEO

2 Mr.Ravi Batra Company Secretary and Compliance

Officer

Quality Statement

Quality Policy

Quality is an ever-extending goal - the better you are, the better you

need to be. The management of the quality process is infinite, and

marked only by milestones, never by completion!

Religare recognizes that it needs to constantly improve the quality of

its deliverables to match the increasing expectations of customers to

fulfill the goal of self-evident quality.

Vision

To build Religare as a globally trusted brand in the financial services

domain and present it as the ‘Investment Gateway of India’

24

Mission

Providing financial care driven by the core values of diligence and

transparency.

Brand Essence

Religare is driven by ethical and dynamic processes for wealth

creation.

Religare Securities – Highlights

Equity Broking under three broad categories:

– Priority Client Trading (Advise Based Non Discretionary Trading)

– Retail Equity Trading (Relationship Manager & Dealing Team)

– Online Trading (Self Directed Trading)

Each Vertical creating their own infrastructure.

Improved Ratio of Relationship Manager vs. dealing team.

Gross Brokerage increased 98% from 1428 Million Rs. First

Half 07 to 2822 Rs. Million for Nine Months 07.

25

Aggressive ramp up of equity trading client accounts and

PMS asset collection.

Established a productive equity research team with wide

coverage under Religare Securities Limited.

Received in principal approval from SEBI to be sponsor of

Asset Management joint venture with Aegon.

Received P1 Credit Rating from Crisil for its short term

debt issuance program for a sum of Rs 7000 million

Religare Enterprises Limited

Religare Securities Limited - Equity Broking

Portfolio Management Services

Depository Online Investment Portal Institutional Equity Broking

Religare Finvest Limited - Lending and Distribution business

Religare Commodities Limited – Commodity Business

Religare Insurance Broking Limited – Life and Non Life Insurance

Reinsurance

26

Religare Capital Markets Limited - Investment Banking

SEBI Registered Merchant Banker

Acquisition in UK through an international arm

Religare Arts Initiative Limited - Art Fund and other businesses of Art

Gallery to be launched soon

Religare Realty Limited - Real Estate Management Company

Religare Venture Capital Private Limited – Private Equity and Investment Manager

New Initiatives - Religare is on a fast and ambitious growth

trajectory with some interesting plans in the pipeline

27

28

AEGON Religare Life Insurance - Life Insurance Company, a Joint

Venture with Aegon one of the largest insurance and pension companies, globally

Religare AEGON AMC - Asset Management Company, a Joint Venture with Aegon

Religare Finance - Personal Loans / Credit Cards / Loan against Property /

Mortgage & Revers Mortgage.

Online Trading - Agreement with IndusInd Bank to offer online trading

services 

Religare Macquarie Wealth Management  Ltd - Wealth

Management Company , a Joint Venture with Macquarie

 

Wealth Management Services - with WallStreet Electronica, Inc., a U.S. broker - dealer

to give our Indian clients access to U.S markets 

 

Religare Securities Ltd - Agreement with Vijay Co-operative Bank Ltd. and

Tamilnad Mercantile Bank Ltd. to offer offline trading services

# Answer Response %

1 Rally 31 53%

2 Rally Pro 20 34%

3 Rally lite 8 14%

Total 59 100%