Reliance Money (1)

8/13/2019 Reliance Money (1)

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SUMMER TRAINING PROJECT REPORT

On

RELIANCE MONEY BOON IN SECURITYMARKET

SUBMITTED IN THE PARTIAL FULFILMENT OF THE

REQUIREMENT FOR

THE DEGREE OF MASTER OF BUSINESS

ADMINISTRATION

Master ! B"s#ness A$%#n#strat#n &MBA'

Un$er t(e G"#$an)e !

*

SUBMITTED BY+

*


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CERTIFICATE


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DECLARATION

I,------** hereby declare that I have carried out my project in title

RELIANCE MONEY BOON IN SECURITY

MARKET

I further declare that this is my original work and no part of this report has been published or

submitted to anybody or University for award of Degree Master of Business Administration.


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ACKNO.LEDGEMENT

he research report on !eliance Money" #ucknow is my professional e$perience in

finance sector that enriched my knowledge in the finance sector.

Inspiration" motivation and encourage ement are some essential

intredients for a research report to be undertaken. I e$press my sincere thanks to

Mr. %apil Bali &enter Manager for providing me all important knowledge about the

process in company. 'is valuable guidance and thoughtful consideration has been the

motivating factor throughout my research" which enabled me to complete my research

report.

I am especially thankful to my course coordinator (. who guided meand provided me valuable suggestions

whenever I re)uired.

#ast but not the least I am very much greatful to the Almighty as

well as my parents for all of their support and encouragement.


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TABLE OF CONTENT

C(a/ter 0+ Intr$")t#n t t/#)

C(a/ter 1+ C%/an2 Pr!#3eC(a/ter 4+ O56e)t#7es

Resear)( Met($382

C(a/ter 9+ Data Ana32s#s

C(a/ter :+ F#n$#n8s

C(a/ter ;+ Re)%%en$at#n

C(a/ter


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HISTORY OF STOCK MARKET

Braudel suggests that in &airo in the ** th century Muslim and +ewish merchants had

already set up every form of trade association and had knowledge of every method of

credit and payment" disproving the belief that these were invented later by Italians. In

*,th century -rance the courratiers change were concerned and managing and

regulating the debts of agricultural communities on behalf of the banks. Because these

men also traded with debts" they could be called the first brokers. In late * th century

Bruges commodity traders gathered inside the house of a man called /an der Beurse

and in *01 they became the 2Brugse Beurse3" instutionali4ing what had been" until

then" an informal meeting. he idea )uickly spread around -landers and neighboring

counties and 2Beur4en3 soon opened in 5hent and Amsterdam.

In the middle of the *th

century /enetian bankers began to trade in govt.

securities. In *6* the /enetian government outlawed spreading rumors intended to

lower the price of government funds. Bankers in 7isa" /erona" 5enoa and -lorence

also began trading in government securities during the *8th century. his was only

possible because these were independent city states not ruled by a duke but a council

of influential citi4ens. he Dutch later started joint stock companies which let

shareholders" invest in business ventures and get a share of their profits or losses. In

*90, the Dutch :ast India &ompany issued the first shares on the Amsterdam ;tock

:$change. It was the first company to issue stocks and bonds.


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he Amsterdam ;tock :$change th

&entury. he Dutch 2pioneered start short selling" option trading" debt ? e)uity swaps"

merchant banking" unit trusts and other speculative instruments" much as we know

them3


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SECURITIES AND E>CHANGE BOARD OF INDIA

he securities and :$change Board of India was established by the government of

India. It was subse)uently upgraded as a fully autonomous body in the year *11,

with the passing of the ;ecurities and :$change Board of India Act on 0th +an.

*11,. In place of government control a stautory and autonomous regulatory board

with defined responsibilities to cover both development and regulation of the market

and independent powers has been set up. 7arado$ically this is a positive outcome of

the ;ecurities ;cam of *110?1*.

;ince its inception ;:BI has been working targeting the securities

and is attending to the fulfillment of its objectives with commendable 4eal and

de$terity. he improvement in the securities market like capitali4ation re)uirements"

managing". establishment of clearing corporations etc. !educe the risk of credit and

also reduced the market.

;:BI has introduced comprehensive regulatory measures" prescribed

registration norms" the eligibility criteria" the code of obligation and code of conduct

for different intermediares like bankers to issue" merchant bankers" brokers and sub?

brokers" registrars" portfolio managers" credit rating agencies"underwriters and others. It

has formed bye? laws risk management system for clearing house of stock e$changes"

surveillance system etc. which has made dealing in securities both safe and transparent

to the end investors.


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A market inde$ is a convenient and effective product because of

the following reasons

It acts as a barometer for market behavior.

It is used to benchmark portfolio performance.

It is used in derivative instrument like inde$ futures and inde$ option.

wo broad approaches to ;:BI are to integrate the securities market

at the national level and also to diversify the trading products" so that there is an

increase in number of traders including banks" financial institutions" insurance

companies" mutual funds" primary dealers etc. to transect through the e$changes. In

this conte$t the introductive derivatives trading through Indian ;tock :$change

permitted by ;:BI in ,000 AD is a real landmark.

;:BI appointed the #.&. 5upta &ommittee in *11C to recommend

the regulatory framework for derivatives trading and suggest by e? laws for regulation

and control of trading and settlement of derivatives contracts. he board of ;:BI in

its meeting held on May **" *1C> accepted the recommendations of the committee and

approved the phased introduction of derivatives trading in India beginning with stock

inde$ futures.

'owever the ;ecurities &ontracts


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amendment to include 2derivatives3 in the definition of securities to enable ;:BI to

introduce trading in derivatives. he necessary amendment was then carried out by the

government in *111. he securities laws Bill" were introduced in December *111 the

new framework was approved.

Derivatives have been accorded the status of 2securities3. he ban

imposed on trading in *191 under a notification issued by the central government was

revoked. herefore ;:BI formulated the necessary regulation bye? laws and intimated

she stock e$change in the year ,000.

OBJECTI?E @PURPOSE OF THE SEBI ACT

o protect the interest of investors in securities.

o promote the development of the securities markets

o regulates the securities market

-or matters connected there with or incidental thereto

MANAGEMENT OF THE BOARD SECTION9

he ;:BI is managed by a board consisting of the following

&hairman

wo members from amongst the officials of the ministers of &entral

5overnment dealing with finance and law.

Ene member from amongst the officials of the !eserve bank of India.


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wo other members to be appointed by the central 5overnment.

he management of ;:BI will be vested in the board in &hairman shall have the

power of general superintendence and direction.

PO.ERS FUNCTIONS OF SEBI SECTION 00

!egulating the business in stock e$change and any other securities markets.

!egistering and regulating the working of stock brokers.

!egistering and regulating the working of sub?brokers.

!egistering and regulating the working of share transfer agents.

!egistering and regulating the working of collective investment schemes"

including mutual funds.

7romoting and regulating self?regulatory organi4ations.

7romoting investor education and teaching of intermediaries of securities

markets.

7rohibiting in side trading in securities.

7rohibiting fraudulent and unfair trade practices relating to securities markets.

!egulating substantial ac)uisition of shares and take Fover of companies.

&alling for information form " undertaking inspection" conducting in)uiries.


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Audits of the stock e$change.

#evying fees or other charges for carrying out the purpose of this section.

&onducting research for the above purpose.

7erforming such other functions as may be prescribed.

ADDITIONAL FUNCTIONS ! SEBI+

7ower to approve the bye? laws of stock e$change.

7ower to make or amend bye?laws of recogni4ed stock e$changes

7owers to inspect book of accounts and call periodical return from recogni4ed

stock e$changes.

7ower to grant a license to any person for the business of dealing in securities

in certain areas.

7ower to compel listing of securities on any recogni4ed stock e$change.

7ower to delegate powers e$ercisable by it

LIMITATIONS OF SEBI+

hough ;:BI has started a watch dog in protecting investors

interest" regulating the working of the stock e$change and promoting capital market "

still it faces a number of problems in its working some of these limitations are as

follows

he central government has authori4ed ;:BI to frame its rules and regulation


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for actively monitoring capital markets. here rules and regulation will have to

be approved by the government first. his will cause unnecessary delay and

interference by the finance ministry.

he bureaucratic delays in clearing the rules will hamper the working of ;:BI.

he 5overnment should direct ;:BI to frame or change the rule as per the

demand of solution so that it able to achieve professional efficiency.

;:BI will have to seek prior approval for filling criminal complaints for

violations of the regulation . his will again cause delay at government level.

;:BI has not been given autonomy . Its Board of Directors is dominated by

government nominees. Eut of 6 directors only , can be from outside and there

are to represent the inistries of -inance " #aw and !eserve Bank of India.

!ules and regulation will have to be approved by the government first.

SEBI (as REGULATED+

7rimary Market.

;econdary Market.

Mutual funds and

-oreign institutional investments

.HAT ARE STOCKS

T(e De!#n#t#n ! a St)

7lain and simple" stock is a share in the ownership of a company. ;tock represents a

claim on the companyGs assets and earnings. As you ac)uire more stock" your ownership stake

in the company becomes greater. Hhether you say shares" e)uity" or stock" it all means the


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same thing.

Be#n8 an Oner

. 'olding a companyGs stock means that you are one of the many owners


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car" furniture" etc. Ewning stock means that" no matter what" the ma$imum value you can lose

is the value of your investment. :ven if a company of which you are a shareholder goes

bankrupt" you can never lose your personal assets.

SECURITIES

.(at #s %eant 52 se)"r#t#es

he definition of 2;ecurities3 as per the ;ecurities&ontracts !egulation Act


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ollective investment scheme" interest and rights in securities" securities receipts or any

other instruments so declared by the central government.

.(at are t(e !"n)t#ns ! St) E)(an8es;ecurities market is a place where buyers and

sellers of securities can enter into transactions to purchase and sell shares" bonds"

debentures etc. -urther it performs an important role of enabling corporate

entrepreneurs to raise resources for their companies and business ventures through

public issue. ransfer of resources from those having idle resources


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.(#)( are t(e se)"r#t#es ne )an #n7est #n

;hares

5overnment securities

Derivative product Unit of Mutual fund etc. are some of securities one can

invest in.

.(at #s Pr#%ar2 Maret

It refers to new issues of shares by new companies as well e$isting &ompanies. hese

shares with be listed on specified ;tock :$change after completion of allotment and

compliance with other prescribed formalities. Apart from shares other commonly

issued instruments are debentures" convertible debentures" ;hares with attached option

like warrants etc.

Investors apply for ;hares in the 7rimary Market and the company will allot shares on the

basis of the e$tent of over?subscription" if any. In the latter case" applicant may be allotted

lesser number of shares" than applied for. hese are detailed in ;:BI guidelines on allotments.

Investors will be willing to apply for shares in the 7rimary Market" if the issue 7rice is

believed to be less than the 7otential post?listing market price.

he 7rimary market has not been active since the last few years due to aggressive pricing of


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shares by some companies" their subse)uent inability to maintain this price" liberali4ation of

share premium rules by the 5ovt. poor )uality of due diligence by some merchant bankers

and a host of other factors.


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.(at #s Se)n$ar2 Maret

It is a stock e$change" where any body can buy


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brokers contact each other using trading terminals to find out who is interested in the share

you want to buy or sell. Brokers have terminals linked to the B;: or the J;: and they

directly purchase or sell shares using these terminals. he entire transaction happens

electronically or through websites like www.!eliancesecurities.com.

Brokers may also authori4e a sub?broker to conduct the transactions on behalf of them.

;ince brokers are providing a service they charge you for the same. Jormally this

payment is not a flat rate" but a commission of the transaction value. Brokerages normally

range from 0.6 to * for delivery?based transactions and from 0.*0 to 0.,6 for intra?day

transactions.

)' Re8#strars+

he registrar for each company maintains records of all the shareowners of the

company and the number of shares that they own.Hhenever an ownership changes takes place" the registrar updates the shareholders

database.

$' De/s#tr#es an$ t(e#r /art#)#/ants+

Depositories are organi4ations that hold shares of investors" on re)uest" in electronic

form through a registered Depository 7articipant.

It can be compared with a bank as it holds securities in an account" transfers securities

between accounts on the instruction of the account holder" facilitates the transfer of ownership

without the account holder needing to handle securities and makes the safekeeping of shareseasy.

he agent through which a depositories interfaces with the investor is known as a

depository participant.

ou can create a demat account with a D7" who will keep an account of all the shares

you own. his is much like the banking system" where you just create an account and have a

passbook which updates you on the money you own and the transactions you have made. In

your demat account you own shares in an electronic format and your account gets updated as

you buy and sell shares.

e' SEBI+

he regulatory body that governs all stock market transactions is the ;ecurities and

:$change Board of India. ;:BI forms rule and regulations that govern transactions in

securities market and that the stock e$changes and other intermediaries follow all such rules

and regulations set by it andor the government. ;:BI also looks into investor complaints
http://www.religaresecurities.com/http://www.religaresecurities.com/


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against companies. It is )uasi?judicial and can try cases and pass judgments against any

market participants. It also looks into mergers and ac)uisitions of companies.

9*4 BEFORE IN?ESTING

o start investing in shares you need to open a stock?broking account with a registered

broker and a demat account with a Depository 7articipant. Hhen you open a !eliance -irst

;tep account" you get everything you need to start investing in shares. !eliance offers trade

e$ecution on both the B;: and the J;:" and being a D7 it also provides you a free


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If you have an online trading account and a demat account with !eliance then

settlement process for securities happens as a paperless ransaction.


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HO. CAN ONE KNO. CURRENT PRICE OF ANY STOCK THE

Hhenever you are buying or selling a share" you will encounter certain terms related

to share prices. hese terms deal with the individual price movements of a single share as well

as the price movements of all the shares. -or every share" typically there are four price

parameters.

a' O/en+

his is the price at which the share opened on a particular day" that is the price at

which the first purchase of the share was made during that day.

5' H#8(+

his is the highest price that a share went up to on a given day" or the highest price the

investors paid for that share.

C' LO.

his refers to the lowest price that a share fell to during a day" or the lowest price an

investor paid for that share.

D' C3se+

his is the price at which the share closed on that day or the price for the last trade of

that day. At any given point of time" the share price will fluctuate between the highs and the

lows" sometimes reaching new highs" sometimes falling to new lows.

Hhen trading in shares" you need to mention the price point at which you want to buyor sell. o specify the price point" it helps if you know the statistics or the trends of your

stock" and the stockGs opening and closing prices of the previous days.

ou can also trade in shares without specifying the priceOthis is known as a market

order. In this case the trade happens at the market price at that point of time.

9*4 TRACKING THE STOCK MARKET


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he B;: ;ense$


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a' Ca/#ta3 8a#ns ta+

If you purchase a share and sell it at a price higher than the purchase price and if this

sale is within a year of the purchase" then appro$imately *0 capital gains ta$ is levied on the

profit that you make. -or e$ample" if you bought a share for !s*00 on +anuary *" ,006 and

sold it for !s*60 on +uly *" ,006" then you have to pay a ta$ of *0 on the !s60 profit that

you make. If you sell after a year of purchase" there is no ta$ on the long?term gains.

5' Se)"r#t#es transa)t#n ta

;ecurities transaction ta$


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COMPANY PROFILE

Growth has no limit at Reliance. I keep revising my vision. Only

when you can dream it, you can do it.

.

D(#r"5(a# H* A%5an#

F"n$er C(a#r%an Re3#an)e Gr"/

December ,C" *1,? +uly 9" ,00,

Dheerubhai Ambani founded !eliance as a te$tile company and let its evolution as a

global leader in the materials and energy value chain business.

'e is regarded as an icon for enterprise in India. 'e epitomi4ed the spirit dare to

dream and learn to e$cel.


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;hri Dheerubhai Ambani was an e$ceptional human being and an outstanding leader.

-rom a humble beginning" he went on to creat an enviable business empire within a

span of just ,6 years. he U; T 68 BI##IEJ !eliance 5roup is a living testimony

to his indomitable will" single minded dedication and an unrelenting commitment to

his goals. Und er ;hree Dhirubhai Ambanis visionary leadership" the !eliance 5roup

emerged as the largest business conglomerate in India and carved out a distinct place

for itself in the global pantheon of corporate giants. he groups track record of

consistent growth is unparalled in Indian industry and perhaps internationally too.

oday" the 5roups turnover represents nearly three percent of Indias 5D7.

he corporate philosophy he followed was short" simple and succinct F Think big.

Think dierently. Think ast. Think ahead. !im or the best. 'e inspired the

!eliance team to do better than the best? not only in India but in the world.

7restigious awards and titles were conferred on him by him by national and

International organi4ations. 'e was acclaimed as the op businessman of the twentieth

centuary and landed for his dynamic" pioneering and innovative genius. 'e was

probably the first Indian businessman to recogni4e the strategic significance of

investors and discover8 the vast untapped potential of the capital markets and

channeli4e it for the growth and development of industry. 'e was supremely confident

that finance would never be a constraint in e$ecuting his projects because as he said

proudly" Indian investors would provide him with necessary resource.

-or him" his people were his most important asset. 'e


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scounted around for the best and most talented professionals" nurtured them and

continuously propelled them to aim for still higher goals. hese higly motivated

people compromise the core of what he named T(e Re3#an)e Fa%#32


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;hree dhirubhai Ambani visuali4ed the growth of !eliance as an integral part of his

grand vision for India. 'e was convinced that India could become an economic

superpower within a short period of time and wanted !eliance to play an important

role in reali4ing this goal.

he Bhagawad 5ita states" The actions o a great man are

an inspiration or others. "hatever he does becomes a standard or others to

ollow. his certainly applies to ;hri Dhirubhai Ambani are rare. hey come gifted

with the power and the vision to change the destiny of nations" to alter the course of

corporate history. hey are the empire builders" the stuff that legands are made of.

he legand called ;hri Dhirubhai Ambani will never die. 'is spirit will live on

forever.

!eliance is a leading full service securities firm providing the entire gamut of

financial services. he firm" founded in *118" today has a pan India presence as well as an

international presence through offices in America and Bangkok. A! provides a breadth offinancial and advisory services including wealth management" investment banking" corporate

advisory" brokerage P distribution of e)uities" commodities" mutual funds and insurance"

structured products ? all of which are supported by powerful research teams.

he firmGs philosophy is entirely client centric" with a clear focus on providing

long term value addition to clients" while maintaining the highest standards of e$cellence"

ethics and professionalism. he entire firm activities are divided across distinct client groups

Individuals" 7rivate &lients" &orporates and Institutions and was recently ranked by Asia

Money ,009 poll amongst ;outh AsiaGs top wealth managers for the ultra?rich.

In year ,00> &itigroup /enture &apital International joined the group as a financial partner.

ANIL DHIRUBHAI AMBANI GROUP


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Anil Dhirubhai Ambani

&hairman" Anil Dhirubhai Ambani 5roup

Born on +une 8" *161

?ISION+

o build a global enterprise for all our stakeholders AJD

A great future for our country.

o give millions of young Indians the power to shape their destiny.

he means to relia4e their full potential.


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?ALUES+

;hareholders Interest

7eople &are

&onsumer -ocus

:$cellence in e$ecution

eam Hork

7roactive Innovation

#eadership by :mpowerment

;ocial !esponsibility

!espect for competition

S(are(3$ers Interest

He value the trust of shareholders" and keep their interests

paramount in every business decision we make" every choice we e$ercise.

Pe/3e Care

He possess no greater asset than the )uality of our human capital

and no greater priority than the retention" growt and well F being of our vast pool of

human talent.


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Cns"%er F)"s

He rethink every business process" product and service from the

standpoint of the consumer so as to e$ceed e$pectations at every touch point.

E)e33en)e #n ee)"t#n

He believe in e$cellence of e$ecution in large" comple$ projects

as much as small everyday tasks If something is worth doing" it is worth doing well.

Tea% .r

he whole is greater than the sum of its parts" in our rapidly

changing knowlrdge economy" organi4ation can prosper only by mobili4ing divers

competencies" skill sets and e$pertise" by imbibing the spirit of 2thinking together3

Integration is the rule" escalation is an e$ception.

Pra)t#7e Inn7at#n

He nurture innovation by breaking silos" encouraging cross?

fertili4ation of ideas and fle$ibility of roles functions. He creat an environment of

accountability" ownership and problem solving based on participative work ethic and

leading edge research.


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Lea$ers(#/ 52 E%/er%ent

He belive leadership in the new economy is all

about consensus building" about giving up control" about enabling and empowering

people down the line to take decisions in their areas of operation and competence.

S)#a3 Res/ns#5#3#t2

He believe that organi4ation like individuals" depend on the

support of the community for their survival and sustenance and must repay this

genuosity in the best way they can.

Res/e)t !r )%/et#t#n

He respect competition because theres more than one way of

doing things right" we can learn as much from the success of others as from our own

failure.


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RELIANCE CAPITAL

B"s#ness O7er7#e

!eliance capital is one of Indias leading private sector financial services companies"

and ranks among the top private sector financial services and banking companies" in

terms of net worth. !eliance capital has interest in asset management and mutual

funds" stock broking" life insurance and general insurance" proprietary investment"

private e)uity and other activities in financial services.

!eliance &apital sees immense potential in the rapidly growing

financial service sectors in India and aims to become a dominant player in this

industry and offer fully integrated financial services.

!eliance &apital sees immense potential in the rapidly growing

financial services sector in India and aims to become a dominant player in this

industry and offer fully integrated financial services.

India


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stood at !s. *0>* &rores. he investment portfolio of ! is structured in a way that

reali4es the highest post?ta$ return on its investment


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BOARD OF DIRECTORS

An#3 D(eer"5(a# A%5an#, C(a#r%an

Anil Ambani < born +une 8" *161 = is an Indian businessman. As of March ,00>" he

has a net F worth of U;T *C., billion" making him the *Cth richest person in the

world. Ambani holds a Bachelir of ;cience degree from the University of Bombay

and an MBA degree from he Hharton ;chool at the University of 7ennsylvania.

&urrently" he serves as a member of the Hharton Board of Everseers. Ambani joined

!eliance in *1C as &o?&hief :$ecutive Efficer.

A)(#e7e%ents an$ Re)8n#t#n

7olled as India most admired &hief :$ecutive for ,008" for the si$th year in

;uccession" in the Business Barons < Indias leading business maga4ine = aylor

Jelson ;ofres ? Mode ;urvey L and ranked at the top in out of 8 )ualities

leadership" integrity and vision.

!anked Jo. * for the second consecutive year" in he 7ower #ist ,008

published by India oday" March ,008.

;elected by Asia week maga4ine for its list of 2 #eaders of the Millenium in

Business and -inance3 and was introduced as the only new hero in Business

and -inance from India" +une *111.

#eading business maga4ine Business Barons included him in its list of Indias


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,6 Most Influential Business and -inancial #eaders" +une *11C.

Member Board of 5overnor of II %anpur.


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Aar$s

/oted Businessman of the year ,009 by imes of India ? J; poll

Adjusted as the &:E of the ear at the prestigeous 7latts 5lobal :nergy

Awards for ,008.

/oted M/ outh Icon of the ear" ;eptember ,00.

&onferred he :ntrepreneur of the Decade Award by the Bombay

Management Association" Ectober ,00,.

Awarded the -irst Hharton Indian Alumni Award by the

Hharton India :conomic -orum .

A%#ta5( J("n6("na3a, ?#)eC(a#r%a

Ra6en$ra C(#ta3e, In$e/en$ent D#re)tr

;hri !ajendra 7. &hitale" 89" an eminent &hartered Accountant" is the Managing7artner of Ms M.7. &hitale P Associates. 'e is a member of the advisory board of

the Insurance and !egulatory Authority of India


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S(r# C*P* Ja#n

;hri &.7. +ain" 9*" is the formar &hairman and Managing Director of

J7& #td.


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-or corporate clients" we will be offering value based customi4ed solutions to cover all

risks which their business is e$posed to. Eur clients will be supported by an operations team

e)uipped with the best of technology support. !eliance Insurance Advisory aims to provide

neutral" transparent and professional risk transfer advice to become the first choice of India.


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I&:@

&ommodity markets regulator -M& said it has given approval to the Anil Ambani 5roup to

ac)uire ,9 per cent stake in Indian &ommodity :$change


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According to newspaper reports" !eliance &ompany #imited has decided to convert

itself into a special purpose vehicle cum venture capital outfit. he company plans to

develop infrastructure projects and invest in Info ech" internet " media and biotech start

ups. he company is also wants to e$pand its Mutual -unds business.

!eliance &ompany #imited

financial service company. ! has a net worth in e$cess of !; ** bn. he !eliance

5roup owns a 6 stake in the company.

! is moving away from the traditional non ?banking finance

company mould by reducing business activities pertaining to inter corporate deposits

and corporate loans. he company is setting aside !; *0 bn to invest in its new

business focus areas.

he companys decision to focus on new areas as well as concentrate on the mutual

fund business will leads to a complete overhaul of its business portfolio. he new

business involves high risk and large amount of capital but they also offer the best

opportunities for future growth. As ! has the funds to put up in these businesses

the decision is likely to be beneficial to the company.


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Re3#an)e %"t"a3 !"n$

!eliance mutual fund" promoted by the Anil Dhirubhai Ambani 6 crore of assets under

management. !eliance :)uity -und" launched by !eliance M- in early ,009" is the largest

mutual find scheme in the country with a fund si4e of over !s 6"600 crore.

RELIANCE MONEY

!eliance Money is a group company of !eliance &apital one of Indias leading and

fastest growing private sector financial services companies" ranking among top

private sector financial services and banking companies" in terms of net worth.

!eliance &apital is a part of the !eliance Anil Dhirubhai Ambani 5roup. he

company was registered on *>th june" ,006.

!eliance Money is a comprehensive financial solutions provider offering a complete

baskets of financial services. hrough !eliance Money currently" a customer will be

able to transact amongst others" in e)uity" e)uity and commodity" derivatives" offshore

investment" I7Es mutual funds and insurance products.


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At present the company has more than 60 employees across >6 locations with the

total no. of 8, offices.

!eliance Money can be segregated into 8 main products which include

!eliance #ife Insurance 7lans

!eliance 5eneral Insurance policies

!eliance Mutual -unds

!eliance on line trading facility


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H#str#)a3 Pers/e)t#7e

he history of life insurance in India dates back to *C*C

when it was conceived as a means to provide for :nglish Hidows. Interestingly in

those days a higher premium was charged for Indian lives than the no? Indians as

Indians lives were considered more riskier for coverage.

Insurance regulation formally began in India with the passing

of the #ife Insurance &ompanies Act of *1*, and the provident fund Act of *1*,.

;everal frauds during ,0s and 0s sullied insurance business in India. By *1C

there were *>9 insurance companies. he first comprehensive legislation was

introduced with the insurance Act of *1C that provide strict ;tate &ontrol over

insurance business. he insurance business grew at a faster pace after independence.

Indian companies strengthen their holds on the business but despite the growth that

was witnessed" insurance remained an urban phenomenon.

he ,. their operation were restricted to organi4ed trade and industry in large

cities. he general insurance industry was nationali4ed in *1>,. with this" nearly *0>

insurers were amalgamated and grouped into four companies?

Jational Insurance &ompany " Jew Delhi

Jew India Assurance &ompany

Eriental Insurance &ompany


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United India Insurance &ompany

hese were subsidiaries of the 5eneral Insurance &ompany

!eliance #ife Insurance has a pan presence and a range of

products catering to individual as well as corporate needs. A total of *9 products

covering savings" protection P investment re)uirements

Re3#an)e L#!e Ins"ran)e "3$ str#7e (ar$ t a)(#e7e t(e !33#n8 8a3s+

:merge as transactional #ife Insurer of 5lobal scale and standards

Achieve impeccable reputation and credentials through best business practices

/ision :mpowering everyone live their dreams

Mission create unmatched value for everyone through dependable" effective"

transparent and profitable life insurance and pensions plans

5uiding 7rinciples

!eliance #ife Insurance is another step forward for !eliance &apital #imited to offer

need based #ife Insurance solutions to individuals and &orporates.

here are various plans which are offered for individuals P employee s by !eliance

#ife Insurance. 7lans are as follows?

!:#IAJ&: AUEMAI& IJ/:;M:J 7#AJ

!:#IAJ&: MEJ: 5U!AJ:: 7#AJ


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!:#IAJ&: :JDEHM:J 7#AJ

!:#IAJ&: ;7:&IA# :JDEHM:J 7#AJ

!:#IAJ&: &A;' -#EH #AJ

!:#IAJ&: &'I#D 7#AJ

!:#IAJ&: :!M 7#AJ

!:#IAJ&: H'E#: #I-: 7#AJ

!:#IAJ&: MA!%: !:U!J 7#AJ

!:#IAJ&: 5E#D:J :A!; 7#AJ

!:#IAJ&: ;7:&IA# :!M 7#AJ

!:#IAJ&: &EJJ:& E #I-: 7#AJ

Apart from these there are other employees benefits plans which are also provided to

the employee" which are as follows?

!:#IAJ&: 5!EU7 :!M A;;U!AJ&: 7E#I&

!:#IAJ&: :D#I ;&':M:

!:#IAJ&: 5!EU7 5!AUI 7#AJ

his includes the following three plans under it" which are as follows?

o Balanced &apital ;ecure -und

o -und

o 5rowth -und


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ULIP OF RELIANCE LIFE INSURANCE

I* Re3#an)e Mne2 G"arantee P3an

Under this plan the investment risk in the investment portfolio is borne by the

policy holder. It is a trio the pace setter plan" which promise life protection an

opportunity to gain control over investment along with protection of downside risk.

he !eliance Money 5uarantee 7lan is a unit linked product

addressing comprehensive need to strike that perfect balance and savings" that you

deserve as you grow successfully. he !eliance Money 5uarantee 7lan is a regular

premium linked policy which guarantees the entire premium


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money 5uarantee suit of products offered" as you grow up the ladder.

#i)uidity in the form of partial withdrawal from top?up funds.

Eption to package with accidental death and disability and term insurance riders.


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Bene!#ts #n $eta#3

Ca/#ta3 G"arantee+ he plan offers &apital 5urantee provided the policy is kept in

full force by payment of due premiums on time.

Ca/#ta3 G"rantee "n$er t(e Bas#) P3an+ 7remium paid under the basic plan are

guranteed on the maturity of the policy or on death during the policy term

Ca/#ta3 G"rantee "n$er t(e T/U/ /re%#"%s :ach top?up premium paid is

guranteed on death during the 7olicy erm provided there are no partial withdrawals

from the top?up.

:ach top?up premium paid is guranteed on maturity of the policy provided the policy

term is greater than ten years" there are no partial withdrawals from that top?ups and

top?up was paid ten years before the maturity date.

#!e C7er Bene!#t he amount of Death Benefit depends on the age of the #fe

Assured at the time of death.

i= If the age of the #ife Assured at the time of death is more than *, years last

birthday while the policy is in force" the company will pay the sum of

*. 'igher of


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Basic 7lan e$cluding any e$tra or additional premium paid.=

,.'igher of


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!ider and erm #ife Insurance Benefit !ider.


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Re3#an)e Maret Ret"rn P3an

ou have always aspired for the best in life and we help you achieve just that. Hith

!eliance Market !eturn play you can have the twin advantage of insurance protection

as well as reaping the benefits of insurance growth. It is a fle$ible plan which works

all through your life and meets the changing re)uirements like additional protection"

li)uidity through cash" option to invest in different asset class" steady golden years

and many more.

%ey features? !eliance Market !eturn 7lan

win benefit of market linked return and insurance protection.

A Unit #inked 7lan" different from traditional #ife Insurance 7roducts" with

ma$imum maturity age of C0 years.

Eption to creat your own portfolio depending on your risk appetite.

&hoose from four different investment funds.

-le$ibility to swith between funds.

Eption to pay regular as well as single premium and top ups.

Eption to package with Accidental riders

-le$ibility to increase the ;um Assured

#i)uidity through partial withdrawals.


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Re3#an)e A"t%at#) In7est%ent P3an

he key benefits of !eliance Automatic Investment 7lan are as follows

A smart plan which adapts to your changing risk profile with increasing age.

Eption to lower the average cost of units through systematic transfer of your

funds.

-le$ibility to switch between funds and plans.

Eptions for additional Insurance cover available through riders.

%ey -eatures !eliance Automatic Investment 7lan

wo plan options to choose from !eady?made and tailor?made.

#ife ;tage asset allocation to ensure automatic change in investment patterns"

under the !eady made 7lan option.

-reedom to decide your own fund mi$ based on your risk profile under the

ailor?made 7lan.

!egular" limited" single premium paying options.

Unmatched fle$ibility through our :$change Eptions.

#i)uidity in the form of partial withdrawal

ption to avail of Accident Death Benefit" Accidental otal" 7remium

Disability and erm Insurance riders.


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TRADITIONAL PLANS OF RELIANCE LIFE INSURANCE

Re3#an)e En$%ent P3an

It takeas a lot for a dream to become a reality and money is surely one of them.

!eliance :ndowment 7lan gives you just the financial independence to reali4e your

dreams in the future.

It lets you decide how much you would like to set as your sum assured based on

your current financial position and your e$pected future e$penses.

Ke2 Feat"res

En maturity receive ;um Assured plans bonuses.

Healty creation through bonus addition.

More value for your money by way of 'igh ;um Assured !ebate.

Increase your insurance protection by adding term cover.

&hoose to pay regular or single premium.

&hoose to add the benefit of two riders? &ritical Illness !ider and Accident Death

Benefit and otal AJD 7ermanent Disablement !iders.

&hoose to avail of a 7olicy #oan after three full years of premium.

!eliance ;pecial :ndowment 7lan

!eliance ;pecial :ndowment 7lan is key to all your financial needs. ou get a


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desired lump sum after a specified period" however your life insurance protection

continues for an e$tended period. If anything were to happen to you" your beneficiary

will get another sum assured along with the bonuses.

Ke2 Feat"res

win benefit of protection and savigs.

;um Assured is paid on survival" at the end of the premium paying term life cover

for full ;um Assured continues beyond premium paying term :$tended #ife &over for

five years after premium paying terms.

Health creation through bonus additions.


&hoose to add the benefit of two riders? &ritical Illness !ider and Accidental Death

Benefit and otal and 7ermanent Disablement !iders.

&hoose to avail of a policy loan available after three full years of premium payment.

7olicy participates in profits even after premium paying term.

Re3#an)e )as( !3 /3an

Hhile most insurance plans block your money for a certain period of time" !eliance

&ash -low 7lan gives you the double benefit of life insurance along with easy

li)uidity through lump sum cash. It provides money periodically when you need it.

It lets you live life to the fullest today and at the same

time" helps you stay protected for tomorrow by giving you the fle$ibility of receiving


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a specified percentage of the ;um Assured at specified intervals.


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Ke2 Feat"res

Eas2 3#"#$#t2 5et periodic cash flows at the end of the fourth year and thereafter at

the end of every three years.

Health creation through bonus addition.

En maturity receive accumulated bonuses along with final lump sum payout.


-ull ;um Assured plan bonuses in case of your unfortunate death. his is over and

above the ;urvived Benefits already paid.

Eption to add two riders? &ritical Illness !idr and Accidental Death Benefit and otal

and 7ermanent Disablement !ider

Re3#an)e C(#3$ P3an

As a parent it is only natural to dream of a smooth and blissful life for your child

which is e$actly why you need to secure your childs tomorrow today.

!eliance &hild 7lan helps you to save systematically" so that you can give your child

the much needed financial security in the future. ;imply put !eliance &hild 7lan

gives you the freedom to enjoy every moment with your child today" without carrying

about hisher tomorrow.


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Ke2 Feat"res

!isk protection for you during the term of the 7olicy Accumulated bonus at the end

of the 7olicy term.

,6 of ;um Assured payable every year as lump sum benefit during the last four

policy anniversaries.

All future premiums are waived in the event of unfortunate loss of life.

5uranteed -i$ed Benefits continue even after loss of life of the policyholder.


&hoose to ad the benefit of two riders F &ritical Illness !ider and Accident Death

benefit and Accidental Death Benefit and otal and 7ermanent Disablement !ider.

7olicy participates in profit even after the loss of life of the #ife Assured.

Re3#an)e .(3e L#!e P3an

ou always loved your family as a loving person. ou also wanted to be rest assured

in the knowledge that they will be happy" even if something were happen to you.

Hith !eliance Hhole #ife 7lan you can be sure that your family will receive that

timely financial support they need.

Ke2 Feat"res

Insurance protection till age C6.

&hoose to e$tend your insurance coverage till age 11.


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&onvenient 7remium 7ayment erm Health creation through bonus addition.


5et ;um Assured plus bonuses in case of your unfortunate death.

Eption to add two riders? &ritical Illness and Accidental Death Benefit and otal P

7ermanent Disablement !ider.

7olicy loan available after three full years premium payment.

Re3#an)e Cnne)t t L#!e P3an

!eliance &onnect to #ife 7lan helps you to build security

and savings for a better tomorrow. As your income is likely to grow" you should also

ensure that you have sufficient protection for your near and dear ones. !eliance

&onnect to #ife 7lan ensures that you have the option to upgrade your life cover to

keep pace with your changing lifestyle.

Ke2 Feat"res an$ Bene!#ts

Mat"r#t2 Bene!#t+ En survival of the life assured until maturity" the 7lan pays the

sum assured plans simple vested bonuses to the policyholder.

Deat( Bene!#t+ In case of unfortunate death of the life assured before the maturity

date" the 7lan pays the sum assured plus simple vested bonuses to the nominee.

C(#)e ! t /3ans+ At the time of initial purchase of !eliance &onnect to #ife

7olicy" you have two kinds of plans to choose from namely" 5old 7lan P ;ilver


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7lan.

he !eliance &onnect to #ife 5old 7lan offers a life cover of !s. ,"00"000 initially.

ou may enhance your life cover to a ma$imum of !s. 6"00"000 in two stages by

e$ercising your option.


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O/t#ns t en(an)e 3#!e )7er

Under each of the above two plans" you have an

option to enhance your life cover amount

At the end of one year from the date of initial purchase of !eliance &apital &onnect

to #ife 5old ;ilver 7lan" you are entitled to enhance your life cover by e$ercising

your option to purchase an additional !eliance &onnect to #ife 7olicy.

7rovidd you have e$ercised your option to enhance life cover at the end of the first

year. ou are entitled to enhance your life cover again at the end of the second year

by purchasing an additional !eliance &onnect to #ife 7olicy.

a$ benefit under ;ection C0 & and *0


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and outstanding loans etc.

Discount on premium rates for women.

;uitable for business owners who want to cover the life of their key employees.

Re3#an)e S#%/3e Ter% P3an

o protect your family from tomorrows uncertainities you need to plan from today.

And !eliance ;imple erm 7lan helps you do just that. It is a cost effective" pure

life insurance plan that offers you comprehensive and affordable coverage for a

limited period of time to suit your needs.

Re3#an)e S/e)#a3 Ter% P3an

!eliance ;pecial erm 7lan is a pure life insurance plan that offers you

comprehensive and affordable coverage for a limited period of time to suit your

needs. Hhats more" on survival at maturity all premiums paid for your basic policy

will be returned to you.

Ke2 Feat"res

5et higher insurance protection at economical rates.

Basic premiums paid will be refunded at maturity.

&hoose to pay regular single premium.

Discount on premium rates for women choose to add the benefit of two riders


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to your policy ?critical Illness !ider and Accident Death Benefit AJD otal

and

7ermanent Disablement !ider.

Re3#an)e Cre$#t G"ar$#an P3an

In todays world of easily available loans" we often tend to neglect the price our

loved ones have to pay in case of our untimely demise. !eliance &redit 5uardian

7lan ensures that your housing loans" personal loans or even outstanding credit card

bills are paid in the event of ultimately demise. hus keeping you and your family

protected from the burden and the worry of debt in such a situation.

Re3#an)e M"t"a3 F"n$

!eliance Mutual -und" a part of the !eliance Anil Dhirubhai Ambani 5roup

ADA5= is one of the fastest growing mutual funds in the country. !eliance Mutual

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

re)uirements. !eliance Mutual -und has a presence in over **6 cities across the

country" an investor base of over **6 cities across the country" an investor base of

over !s. 10*1 crore as on *st +an ,00>. !eliance Mutual -und constantly endeavors


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to launch innovative products and customer service initiatives to increase value to

investors.

!eliance Mutual -und schemes are managed by !eliance &apital Asset

Management #td. !eliance &apital is one of Indias leading and fastest growing

private sector financial services companies and ranks among the top three private

sector financial services and banking companies in terms of net worth. !eliance

&apital has interests in asset management and mutual funds" life and general insurance

private e)uity and proprietary investments stock broking and other financial services.

here are three types of scheme which are provided to the

investors under these mutual funds and they are as follows?

E"#t2 @ Grt( S)(e%e

he aim of growth funds is to provide capital appreciation over the medium to

long?term. ;uch schemes normally invest a major part of their corpus and e)uities.

;uch funds are less risky compared to e)uity schemes. hese funds are not affected

because of fluctuations in e)uity markets. 'owever" apportunities of capital

appreciation are also limited in such funds. he JA/s of such funds are likely to

increase in the short run and vise versa. 'owever" long term investors may not bother

about these fluctuations.

Se)tr S/e)#!#) S)(e%es

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


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industries as specified in the offer documents eg. 7harmaceuticals" ;oftware" -ast

Moving &onsumer 5oods


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Hide variety of mutual fund schemes e$ist to cater to the needs such as financial

position risk tolerance and return e$pectations etc. he table below gives an overview

into the e$isting types of schemes in the industry.

BY STRUCTURE

Epen?:nded ;chemes

&lose?:nded ;chemes

Interval?;chemes

BY IN?ESTMENT OBJECTI?E

5rowth ;chemes

Income ;chemes

Balanced ;cheme

Money Market

OTHER SCHEMES

a$ ;aving ;chemes

;pecial ;chemes

Inde$ ;chemes


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;ector ;pecific ;cheme


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De%at A))"nt

Demat ac allows you to buy" sell and transact shares without the endless paperwork

and delays. It is also safe" secure and convenient.

.(at #s De%at A@C

Demat refers to a demateriali4ed ac. +ust as you have to open an account in a bank

if you want to save your money" make che)ue payment etc" you need to open a

Demat account if you to buy or sell stocks. ;o it is just like a bank account where

money is placed by shares. ou have to approach the D7s


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more. ;o a Demat is a must for trading and investing.


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.(2 De%at

he Demat account reduces brokerage charges" makes pledging

hypothecations of shares easier" enables )uick ownership of securities on settlement

resulting in increased li)uidity" avoids confusion in the ownership title of securities

and provides easy receipt of public issue allotments.

It also helps you to avoid bad deliveries caused by signature

mismatch postal delays and loss of certificates in transit. -urther it eliminates risks

associated with forgery" counterfeiting and loss due to fire" theft or multilation. Demat

account holders can also avoid filling up of transfer deeds and obtain )uick receipt of

such benefits as stock splits and bonuses.

De%at Bene!#ts

he benefits are enumerated below?

A safe and convenient way to hold securities.

Immediate transfer of securities.

Jo stamp duty on transfer of securities.

:limination of risks associated with physical certificates such as bad delivery"

fake securities" delays" thefts etc.

!eduction in paperwork involved in transfer of securities.


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!eduction in transaction cost.

Jo odd lot problem" even one share can be sold.


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N%#nat#n !a)#3#t2*

&hange in address recorded with Demat Account gets registered with all companies in

which investors holds securities electronically eliminating the need to correspond with

each of them separately.

ransaction of securities is done by Demat Account eliminating correspondence with

companies.

Automatic credit into Demat Account of shares arising out of bonus split

consolidation merger etc.

'olding investment in e)uity and debt instruments in a single account.

Stan$ar$ $)"%ents re"#re$ t /en an On3#ne Tra$#n8

A))"nt

Pr! ! res#$en)e &A$$ress Pr!'

o Driving license

o /oters ID

o 7assport

o 7hoto credit card

o Utility Bill


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o Bank ;tatement


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Pr! ! I$ent#t2

o Driving #icense

o /oters ID

o 7assport

o 7hoto copy of ration card

PAN Car$

T(ree P(t8ra/(s

Brera8e an$ Fees+

!eliance Money is offering lowest brokerage rates in todays online stock trading

industry. he brokerages are as low as 0.0>6 for delivery based trading and 0.0,

for now delivery.

NOTE+ he above figures may not accurate" pleases contact your nerest !eliance

Money broker to check he brokerages they are offering.

Advantages of !eliance Money

:$tra security features with 2;ecurity oken3 which is the most secure and tested

technology in computer world.

;imple" easy and fast online stock stock trading.

Almost all investment options are available unde one account including :)uity


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rading" Derivatives" -ore$" &ommodity" I7E" Mutual -unds and Insurance.

Branches are now available in all major cities and the number is growing branches

are open from 1 am to 1 pm.


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Bene!#ts ! (a7#n8 a Re3#an)e Mne2 A))"nt

0* Its Cst e!!e)t#7e

ou pay comparatively lower transaction fees" as an introductory offer" we invite you

to pay a flat fee of just !s. 600 and transact through !eliance Money. his fee is

valid for two months or a specified transaction value.

1* It !!ers S#n83e .#n$ A)ess

hrough !eliance Moneys associates you can transact in :)uity" :)uity P

&ommodity Derivatives" Effshore Investments" Mutual -unds" I7Es" #ife Insurance"

Money ransfer" Money changing and credit cards etc.

4* Its Cn7en#ent

ou can assess !eliance Moneys services through

he Internet

ransaction %iosks

he phone


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9* Its Sa!e

our accont is safe gourded with a uni)ue security no. that changes in every ,

seconds. his no. works as a dynamic password to keep your account e$tra safe.

:* It provides you a Demat Account with !eliance &apital at an annual fee of just

!s. 60?

;* It provides you a in * facility. ou can access your banking" trading and demat

account through a single window and transfer funds across accounts seamlessly.

>. It provides you value added services at www.reliance money.com you get

i. !eliable research" including views of e$ternal e$perts with an enviable track

record

ii. #ive news updates from !enters and Dow+ones.

iii. &:Es :$perts views on the economy and financial markets.

iv. ools that help you in planning investments" ta$" retirement etc in the personal

finance section.

v. !isk analy4ers for the analysis of your risk profile.

vi. Asset allocates to bold an appropriate investment portfolio.

Use!"3 3#ns a5"t Re3#an)e Mne2

i. !eliance Money Hebsite www.reliancemoney.com

ii. Branch #ocator !eliance Money Branch #ocator
http://www.reliance/http://www.reliancemoney.com/http://www.reliance/http://www.reliancemoney.com/


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SHARES

EQUITY SHARES

:)uity ;hares are commonly referred to common stock or

ordinary shares. :ven though the word shares and stocks are interchangeably used" there

is a difference between them. ;hare capital of a company is divided into number of

small units of e)ual value called shares.

:)uity ;hares have the following rights according to section C6 = !ight to receive a copy of the statutory report" copies of annual accounts along

with audited report.

C= !ight to apply the central government to call an annual meeting when a company

fails to call such a meeting.

1= !ight to apply the &ompany #aw boards for calling an e$traordinary general


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meeting.


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PREFERENCE SHARES?

he &haracters of the preferred stock are hybrid nature.

;ome of its features resemble the bond and other e)uity shares. #ike the bonds" their

claim on the companyGs income are limited and they receive fi$ed dividend. In the

event of li)uidation of the company their claims on the assets of the firm are also

fi$ed.

T2/es ! Pre!eren)e S(are

a' C"%"3at#7e Pre!eren)e S(ares?

he cumulative total of all unpaid preferred

dividends must be paid before dividends are paid on the common e)uity. he unpaid

dividends are known as arrearages. he arrearages do not earn interest.

5' Nn C"%"3at#7e S(ares

As the name suggests" the dividend does not

accumulate. If there is no profit or inade)uate profit in the company in a particular.

ear" the company does not pay it. In the winding up of a company if the preference

and e)uity shares are fully paid" they have no further rights to have claims in the

surplus.

)' Cn7ert#53e Pre!eren)e S(ares?


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he convertibility feature makes the preference

share a more attractive investment security. he conversion feature is almost identical

with that of the bonds.


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$' Re$ee%a53e Pre!eren)e S(ares?

If there is a provision in the Articles of Association" redeemable preference shares

can be issued. But redemption of the shares can be done only when

he partly paid up shares are made fully paid up

he fund for redemption is created from the profits" which would otherwise be

Available for distribution of dividends or out of the proceeds of fresh issue of

;hares for the purpose.

If any premium has to be paid on redemption" it should be paid out of the

7rofits.

Hhen redemption is made out of profits" a sum e)ual to the nominal value of the

redeemed shares should be transferred to the capital !edemption account.

e' Irre$ee%0a53e Pre!eren)e S(ares?

his type of shares is not redeemable e$cept

on occasions like winding up of the business. In India" this type of shares was

permitted till l6th +une *1CC.


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DEBENTURE

Debenture includes debenture stock" bond and any other securities of company"

whether constituting a charge on the assets of the company or not. Debenture are

generally issued by the private sector companies as a long?term promissory note for

raising loan capital.

C(ara)ter#st#) ! De5ent"resF

Fr%

It is given in the form of certificate of indebtedness by the company specifying the

date of redemption and interest rate.

Interest

he rate of interest is fi$ed at the time of issue itself which is known as contractual

or coupon rate of interest. Interest is paid as a percentage of the par value of the

debenture and may be paid annually" semi annually or )uarterly.

Re$e%/t#n

As stated earlier the redemption date would be specified in the issue itself. he

maturity period may range from 6 years to *0 years India. hey may be redeemed in

installments.


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INDENTURE

Indenture is a trust deed between the company issuing debenture and the debenture

trustee who represents the debenture holders. he trustee takes the responsibility of

protecting the interest of the debenture holders and ensures that the company fulfills

the contractual obligations.

BONDS

Bond is long term debt instrument that promise to pay a fi$ed annual sum as interest

for specified period of time. he basic features of the bonds are given below

*. Bonds have face value. he face value is called par value. he bonds may be

issued at par or at discount.

,. he interest rate is fi$ed. ;ometimes it may be variable in the case of floating

rate bond.

. he maturity date of the bond is usually specified at the issue time e$cept in

the case of perpetual bonds.

8. he redemption value is also stated in the bonds. he redemption value may be

at par value or at premium.

6. Bonds are traded in the stock market. Hhen they are traded the market value

may be at par or at premium or at discount.


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OBJECTI?ES OF RESEARCH

he purpose of research is to discover answers to )uestions through the application of

scientific procedures. he main aim of research is to find out the truth which is

hidden and which has not been discovered as yet. hough each research study has its

own specific purpose" we may think of research objectives as falling into a number of

following broad groupings

o gain familiarity with a phenomenon or to achieve new insights into it


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MEANING OF RESEARCH+

!esearch in common parlance refers to a search for knowledge. Ene can also define

research as a scientific and systematic search for pertinent information on a specific

topic. In fact" research is an art of scientific investigation. It is a careful investigation

or en)uiry especially through search for new facts in any branch of knowledge. ;ome

people consider research as a movement" a movement from the known to the

unknown. It is actually a voyage of discovery.

He all possess the vital instinct of in)uisitiveness for" when the unknown confronts

us" we wonder and our in)uisitiveness makes us probe and attain full and fuller

understanding of the unknown. his in)uisitiveness is the mother of all knowledge of

whatever the unknown" can be termed as research.

!esearch is an academic activity and as such the term should be used in a technical

sense.

According to 2&lifford Hoody3 !esearch comprises defining and redefining problems"

-ormulating hypothesis or suggested solutionsL collecting" organi4ing and evaluating

dataL

Making decisions and reaching conclusionsL and at last carefully testing the

conclusions to determine whether they fit the formulating hypothesis. !esearch is" thus"

an original contribution to the e$isting stock of knowledge making for its

advancement. It is the pursuit of truth with the help of study" observation" comparison

and e$periment. In short" the search for knowledge through objective and systematic


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method of finding solution to a problem is research. he systematic approach


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concerning generali4ation and the formulation of a theory is also research.

As such the term research refers to the systematic method consisting of enunciation

the problem" formulating a hypothesis" collecting the facts or data" analy4ing the facts

and reaching certain conclusions either in the form of solutions towards the concerned

problem or in certain generali4ations for some theoretical formulation.

Resear)( Pr)ess+

he project was completed in the following stages

Sta8e 0+ Understanding the project

Sta8e 1+ 7roblem definition and research design

Met($382+

7rimary data was collected through a sample survey. By visiting other four stock

e$changes branch office


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position of !eliance Money ;ec. #td. in present era of stock e$change.

Resear)( $es#8n+

Market research is a systematic collection" analysis and reporting of data and findings

!elevant to a specific marketing situation facing the competition. he research design

encompasses the following information.

Resear)( T2/e+ Descriptive.

he data has been generated through e$tensive survey method. ;ufficient time has

been given at each stock e$change for e$tracting the desired information.

Descriptive research includes surveys and fact ? finding en)uiries of different kinds.

he major purpose of descriptive research is description of the state of affairs" as it

e$ists at present. In social science and business research we )uite often use the term

:$ post facto research for descriptive research studies. he main characteristic of this

method is that the researcher has no control over the variablesL he can only report

what has happened or what is happening. Most e$ post facto research projects are

used for descriptive studies in which the researcher seeks to measure such items as"


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-or e$ample" fre)uency of shopping" preferences of people" or similar data. :$ post

facto studies also include attempts by researchers to discover causes even when they

cannot control the variables. he methods of research utili4ed in descriptive research

are survey methods of all kinds" including comparative and co?relational methods.

TYPES OF DATA

here were only two types of data available?

7rimary Data

;econdary Data

SOURCES OF DATA COLLECTION

here are two sources from where I collected the data. Hhich are as follow?

Pr#%ar2 $ata+?

7rimary data are those" which are collected afresh P for the first time

P this happen to be original in character. 7ersonal P elephonic Interviews"

observation" personal opinion P view points of the respondents about the various

schemes helped incompletion of the project. Many time ;enior 7erson like D5M post

take the class and give the details about the working pattern of organi4ation.


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Se)n$ar2 $ata+?

;econdary data is the data which was originally complied by another

researcher for other purposes than the one the present researcher intends to use it for.

I also use the secondary data" i.e. the data related to the company like history and

policies of the company P annual report. I take data from the internet like Industry

7rofile" history of the !eliance Money securities #imited.

Data s"r)e+

Data collected was primary as well as secondaryL it was collected by the means of

detailed )uestionnaire from various branches of stock e$change in #ucknow.

Sa%/3e $es#8n+

;ample Unit rading 'ouse.

;ampling ;i4e -our ? branch office of stock e$change as

I&I&I Direct.com

IJDIAIJ-E#IJ.&EM

;herkhan.com

;7-#.com


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Cnta)t Met($+ ;tructure )uestionnaire" verbally

Sa%/3#n8 Pr)e$"re+ ;imple !andom ;ampling.

P/"3at#n S#e+ -inite

Resear)( Instr"%ent+ Xuestionnaire

Resear)( A//ra)(+ Market survey

L)at#n ! Resear)(+#ucknow

Stat#st#)a3 T3 Use !r ana32s#s+ &entral endency


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ANALYSIS AND INTERPRETATION

IN?ESTORS ON THE BASIS OF OCCUPATION

F#n$#n8s

Majority of the investors are of business class since 9C of the population are

businessmen.

, of the investors were of service class.

And 1 are others.


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INVESTORS ON THE BASIS OF

OCCUPATION

68

23

9

Business class

Service class

Others

H #33 2" se3e)t t(e )%/an2 !r /"r)(as#n8 F#nan)#a3

Pr$")ts

F#n$#n8s

Hords of mouth is the most popular source for purchasing financial products.

7eople have much faith on their friends" associates and relatives.

Agents are the ne$t most preffered option for purchasing financial productions.


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3

54

19

4

15

5

0

10

20

30

40

50

60

Adve

rtisement

Refre

nce

Ow

nresearch

Rand

ml!

Re"res

entativ

e

Oth

ers

Series1

Advertisement?

!efrence?68

Ewn research?*1

!andomly?8

!epresentative?*6

Ha7e 2" seen t(e A$7ert#se%ent ! Re3#an)e Mne2

F#n$#n8s

Awareness of !eliance Money is )uite high C>.

elevision" banners and holdings are most popular sources.

* population is still not aware.

&ompany should make efforts to reduce this percentage.


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CUSTOMER AWARENESS

8#

13

$es

%


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T#) t(e F#nan)#a3 Pr$")t 2" are aare !

F#n$#n8s

Almost *00 population is aware of mutual funds and insurance.

Awareness of shares is also )uite high but efforts are re)uired to creat

awareness.

about derivatives and offshore investments.

9#

#8

16

100

2#

3 3

0

20

40

60

80

100

120

&utual'

unds

Shares

()O*s

(nsurance

+mm

ditie

s

,erivative

s

Offsh

reinv

estment

Series1

Mutual funds?1>

;hares?>C

Ipos?*9

Insurance?*00


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&ommodities?,>

Derivatives P offshore invt.?


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Users ! F#nan)#a3 Pr$")ts

F#n$#n8

>C of the population is aware of shares but only ,> are actually trading

thus there is a lot of potential market that can be tapped.

here is a cut throat competition in insurance sector and company has to make

a lot of efforts to retain its customers.

Mutual -unds are the growing sector in financial products.

66

2#

12

100

2 0 00

20

4060

80

100

120

&utual'

unds

Shares

()O*s

(nsurance

+mm

ditie

s

,erivative

s

Offsh

reinv

estment

Series1

Mutual funds? 99

;hares?,>

Ipos?*,


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Insurance?*00

&ommodities?,

Derivatives P offshore invt.?0


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.HICH COMPANY HA?E YOU SELECTED FOR

ONLINE TRADING

F#n$#n8s

%arvy is most popular among investors.

I&I&I seconds the list.

!eliance must have to offer better services and opportunities to investors than %arvy"

I&I&I" Anand !athi" ;harekhan to top the list.

20

10

13

1#19

1112

0

5

10

15

20

25

Share-ha

n

(ndia

.ulls

AnandRathi

(+(+(dire

ct

/arv!

Reliance&ne!

Othe

rs

Series1

;harekhan?,0

India bulls?*0

Anand rathi?*

I&I&I direct?*>

%arvy?*1


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!eliance money?**

Ethers?*,

.ILL YOU RECOMMEND THE RELIANCE MONEY TO

YOUR FRIENDS

F#n$#n8s

Brand loyality of !eliance Money is very low.

8> of the population is not confident of recommending it to their friends"

relatives and associates.

;ome people dont want it to recommend to their knowns ones.

4#

16

35

2

&iht r miht

nt recmmend

)r.a.l! nt

recmmend

)r.a.l!

recmmend

,efinitel! nt

recmmend


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DO YOU BUY ALL THE PRODUCTS OF RELIANCE

MONEY

F#n$#n8s

It proves that brand loyality is very low.

7eople have different choices of the company for the purchase of financial products.

26

#4

$S

%


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.HICH .ORD COMES TO YOUR MIND .HEN YOU

HEAR THE .ORD RELIANCE

F#n$#n8s

&orporate image of !eliance &ommunication is superimposing its other products.

&ompany is not able to truly communicate that !eliance is not just about 7etroleum

and &ommunication.

14

3

5

#8

)etrlium

etile

ner!

(nfcm


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IN .HICH COMPANY DO YOU HA?E YOUR LIFE INSURANCE

F#n$#n8s

#I& is still the biggest competitor in the market.

7eople are moving towards private companies but 7;ULs are still the king of

the market.

21

9 11

3#

49

0

10

20

30

40

50

60

(+(+(

um.ard

,'+

+lu.

Baa

Alliance

,a.ur

Aviva

Reliance (+

Series1

I&I&I lumbard?,*

'dfc club?1

Bajaj alliance?**

Dabur aviva?

!eliance?>


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#ic?81


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FINDINGS

#esser number of trading outlets.

rading terminals are not working at each outlets.

%iosk facility at retail outlets like Barista is not yet working.

&ustomer care personnel are not able to solve customers )ueries.

Account kit is not reaching to the customers within specified time period.

!eliance Money is coming up with best schemes of financial products in the

market.

It is difficult to creat brand loyal customers in case of financial services since

there is a lot of risk involved in the investment but once created" it is difficult

to make them switch over.


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SUGGESTIONS

he company should not overcommunicate their services to their consumers.

hey should clearly inform them about the time by when their services will be

performed so as to avoid dissatisfaction among the consumers.

erminals at different franchise outlets should be in working conditions. he

company should make it as the norm that the franchise given to a person will

be taken away if their terminals are not in setting condition within one week.

;ince setting up a terminal involves e$tra e$penses for a franchise they are not

interested in doing so.

hey are only concentrating on their business since they are not aware of long

term impact of destroying the brand image of the company on their own

business.

here should be a set pattern of infrastructure for all the franchise outlets

which should be specified by the company so as to give an impression on the

consumer that they are gettingt the same service from the company regardless

of the outlets from were they are receiving services.

In order to creat brand identity of !eliance Money and improve its image in

the consumers mind" contact personnel should be given proper dress code.


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A company should have a proper logo for itself and should distribute a small

miniature of that logo to their customers and other potential customers as well.

CONCLUSION

#ess customer awareness.

Homen are investing more in mutual fund while men are in shares and

debentures.

Homen are more risk aversive.

;ervice provided by the company is not acceptable.

here is a difference between what customer e$pect from the service and what

management believes that customer e$pect from the service.

&ompany is promoting their product by saying that they are having lowest

brokerage in the industry but customers doesnt give highest rank to this factor.

hey want a company who can provide them better service and speciali4ation

in the industry.

Brand loyality is very low 7eople believe in the company but they are not

ready to buy all the products of !eliance.


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!eliance has good corporate image but it is imposing on the image of its

subsidiaries Hhenever !eliance comes to peoples mind they associate it with

Infocom" petroleum or energy.


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BIBLIOGRAPHY

BOOKS

%othari" &.!." !esearch methodology methods and techni)ues" ,nd edition" Jew Delhi

Hishwa 7rakashan *110

.EBSITES

www.ril.com

www.reliancecapital.com

www.reliancemoney.com

www.J&-M.com


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QUESTIONNAIRE

7ersonal Details

*. Jame

,. Age

. Address

8. &ontact Jo.

6. Eccupation

9. 'ave you seen the advertisement of !eliance Money K

es Jo

>. If yes whereK

Jewspaper elevision Maga4ines Banners P 'oldings

C. Are you aware of online stock market transactions through demat agencies.

es Jo

If yes howK

-inancial Advisors Jewspaper maga4ine ./.

:$isting investors Ethers

1. 'ow will you select the company for trading


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Advertisement !eference Ewn research

!epresentatives Ethers


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*0. If investing" what would be your primary objective for investing in stock market

&apital 5ain !egular income

**. ick mark the financial product which you are aware of

Mutual -unds Derivatives Effshore investment ;hares

&ommodities Insurance I7Es

*,. Hhich company will you select have selected for online tradingK

;hare %han India bulls Anand !athi %arvy

I&I&I direct !eliance Money Ethers

*. !ank the following factors from * to > in order to their importance to you

-actors !ank

Better ;ervice

5rowth rate of agency

Brokerage

;peciali4ation in industry

Different service offered

&onvenience

Hord of mouth


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Reliance Money (1)

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