SUMMER TRAINING REPORT ON DE-MAT ACCOUNT AND ONLINE TRADING
EXECUTIVE SUMMARY The commencement of E-Trading and De-mat has transformed the capital market in India. With the help of De-mat and Trading account, buying and selling of shares has become a much faster and even process than trading with the assistance of a physical broker. It provides for the assimilation of bank, broker, stock exchange and depository participants. This helps to get rid of the painstaking procedure of investing in stock exchange. Today, if one wants to invest in stock market, he has to contact a broker on phone or meet him personally to place order. A broker generally gives such importance and additional service only to high net worth customers. But the introduction of Internet trading, even a common or a small investor gets an opportunity to avail the service at an affordable price which is much lesser than what is charged by a physical broker over the phone. Online trading has given customer a real time access to account information, stock quotes elaborated market research and interactive trading. The prerequisites of Internet trading are a computer, a modem and a telephone connection, registration with broker, a bank a/c and depository account. The introduction of depository service is considered as the beginning of the trading of Stocks at a click. This means that you can arrange delivery anytime, anywhere to anyone by click of a mouse. Dematerialization facilitates to keep the securities in electronic form instead of paper form. It offers more advantageous than the physical certificate form. Despite the advantages of Dematerialization, the awareness levels among the investors relating to De-mat account is not adequate because of numerous reasons. The investors are not sufficiently responsive of the concept of De-mat account and the various financial institutions providing such services. This study involves understanding the various concepts of De-mat and analyzing the investment pattern of individuals and a study on Analysis of awareness among investors regarding On Line Trading .
TABLE OF CONTENTS CHAPTERS
TABLE OF CONTENTS
LIST OF TABLES
LIST OF CHARTS
INTRODUCTION: i) COMPANY PROFILE ii)SHARE MARKET -OVERVIEW iii)TRADING iv)DEPOSITORY SYSTEM v)DE-MAT ACCOUNT vi)RELIANCE DE-MAT ACCOUNT vii)ONLINE TRADING viii)COMPARATIVE ANALYSIS OF VARIOUS STOCK BROKING COMPANIES
REVIEW OF LITERATURE
SCOPE OF THE STUDY
LIMITATIONS OF THE STUDY
DATA PRESENTATION, ANALYSIS AND INTERPRETATION SUGGESTIONS AND RECOMMENDATIONS BIBLIOGRAPHY ANNEXURE
LIST OF TABLES
Table showing awareness about online trading
Table showing problems related to trading.
about the products and
services offered by Reliance Securities Ltd. 4
Table showing reasons for opening De-mat account
Table showing investment in share market
Table showing frequency of trading
Table showing investment with broking firm
Table showing satisfaction with the Broking firm
Table showing perception regarding Reliance Securities Ltd.
Table showing improvements required by Reliance Securities Ltd.
LIST OF CHARTS CHART NO.
Graph showing awareness about online trading
Graph showing problems related to trading.
Graph showing awareness about the products and services offered by Reliance Securities Ltd.
Graph showing reasons for opening De-mat account
Graph showing investment in share market
Graph showing frequency of trading
Graph showing investment with broking firm
Graph showing satisfaction with the Broking firm
Graph showing perception regarding Reliance Securities Ltd.
Graph showing improvements required by Reliance Securities Ltd.
RELIANCE ANIL DHIRUBHAI AMBANI GROUP
Reliance Anil Dhirubhai Ambani Group is one of India's largest conglomerates, headquartered in Navi Mumbai, India. The company, which was formed after Dhirubhai Ambani's business empire was divided up, is headed by his younger son Anil Ambani. It has a market capitalization of US$ 15 billion, net assets US$ 7 billion. The ADAG Reliance Group has a business presence that extends to over 20,000 towns and 4.5 lakhs (450,000) villages in India, and across the globe. The shareholder base is over 12 million, among the largest in the world. The group is present in many sectors including Telecom, Capital, Power, Infrastructure, Entertainment and Health. The interest of the group ranges from communications (Reliance communications) and Financial Services (Reliance Capital Ltd.), to generation, transmission and distribution of power (Reliance Energy), Infrastructure, Media and entertainment.
Reliance Mutual funds
Reliance General Insurance
Reliance life Insurance
Reliance Consumer Finance
INTRODUCTION TO RELIANCE SECURITIES LIMITED
Reliance Securities or Reliance Money is promoted by Reliance Capital; one of India's leading and fastest growing private sector financial services companies, ranking among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Money is a part of the Reliance Anil Dhirubhai Ambani Group. It is a one-stop-shop, providing end-to-end financial solutions (including mobile and web-based services). It has the largest non-banking distribution 43 channel with over 10,000 outlets and 20,000 touch points spread across 5,165 cities/ towns; catering to the diverse needs of over 3 million existing customers. Reliance Money is a comprehensive electronic transaction platform offering a wide range of asset classes. Reliance Money endeavors to change the way investors transact in financial markets and avails financial services. It provides customers with access to Equity, Equity and Commodity Derivatives, Offshore Investments, Portfolio Management Services, Wealth Management Services, Investment Banking, Mutual Funds, IPOs, Life and General Insurance products and Gold Coins. Customers can also avail Loans, Credit Card, Money Transfer and Money Changing services. Reliance Capital Ltd. has also interests in asset management, life and general insurance, private equity and proprietary investments, stock broking and other financial services. In addition to the home-grown portfolio of products and services that Reliance Money has to offer, Reliance Money also distributes a variety of third party financial products. It also assists millions of investors in creating customized individual portfolios based on their diverse investment needs and risk profiles Reliance Money is the largest broker and distributor of financial products in India with the largest distribution network and almost over 3,174 employees. Reliance Securities is a comprehensive financial solution provider that enables a person to carry out trading and investment activities in a secure, cost-effective and convenient manner.
Vision: To build a global enterprise for all our stakeholders, and A great future for our country, To give millions of young Indians the power to shape their destiny, This means to realize their full potential.
Mission: “Our mission is to be a leading and preferred service provider to our customers, and we aim to achieve this leadership position by building an innovative, enterprising , and technology driven organization which will set the highest standards of service and business ethics.”
The mission of Reliance Securities is to create and nurture a world-class, high performance environment aimed at delighting their customers by providing endless financial products in all part of the country.
Success sutras of Reliance Money: The Success story of the Company is driven by 8 Success Sutras adopted by it namely Trust, Integrity, Dedication, Commitment, Enterprise, Hard work and Team play, Learning and Innovation, Empathy and Humility. These are the values that bind success with Reliance Money.
Achievements: List of recent achievements:
In two successive joint surveys by The Economic Times‟ Brand Equity and ACNielsen, Reliance was recognized as India‟s Most Trusted Mutual Fund.
The company also walked away with seven other scheme prizes – five of them being outright winners – in the Gulf 2007 Lipper Awards. These included the Fund House of the Year by Lipper GCC as well as ICRA Online and the Most Improved Fund House by Asia Asset Management.
It also received the NDTV Business Leadership Award 2007 in the mutual fund category and runners‟ up recognition as the Best Fund House in the Outlook Money- NDTV Profit Awards.
In addition, the company received the coveted CNBC Web18 Genius of the Web distinction for the Best Mutual Fund Website in the country. RCAM was awarded the India On shore Fund House 2008 instituted by the Asian Investor magazine.
The company also won the India Equities award in the 5-yearPerformance category.
Reliance Money generated revenues of Rs. 35 billion (US$ 767 million) for the year March 31, 2009 as against Rs. 24 billion of the corresponding previous period, an
increase of 48%. It also achieved a net profit of Rs. 368 million (US$ 8 million) for the same period, as against a net profit of Rs. 1 million for the corresponding previous period.
Reliance Money is the one of the leading brokerage and distributor of financial products in India with more than 3 million customers.
Reliance Money has tied up with global partners like Reuters, Vasco, Valcambi, Webaroo, and Options Xpress Holdings, Gold ride Securities, World Gold Council, Wincor Nixdorf and DBS Vickers to facilitate better access to wider world class choices to its customers.
It is amongst the leading Mutual fund distributors of the country distributing products of 20 AMCs. It is the largest private sector partner for Western Union Money transfer in India.
To further improve its position in the money changing and money transfer business, Reliance Money has acquired a significant shareholding in Wall Street Finance Ltd, a leading provider of money changing and money transfer services in the Country.
Reliance Money has tied up with Kuoni India and plans to retail its Forex products/services through the national network of over 70 Kuoni outlets.
Reliance Money has tied up with India Post and World Gold Council to sell gold coins 45 through the post office network across the country.
Reliance Money has obtained Category I Merchant Banking License from the Securities and Exchange Board of India. This new license allows Reliance Money to provide a wide range of investment banking services such as Issue Management, Underwriting, Private Equity Advisory/ Syndication and Corporate Finance services in India.
Reliance Money is taking its first steps into the Commodities Exchange business and is in the process of acquiring a 15 per cent stake in Hong Kong Mercantile Exchange With this holding, Reliance Money becomes the second-largest shareholder in the commodity exchange and will have a board membership. Reliance Money is the first Indian firm to acquire a stake in an international exchange.
It has also obtained approval from the Ministry of Consumer Affairs for acquiring 10% stake in the National Multi-Commodity Exchange of India Ltd.
Reliance Securities is the largest brokerage and distributor of financial products in India with more than 2.5 million customers and the largest distribution network. Reliance Consumer finance has a loan book of over Rs. 8,000 crores at the end of June 2009. Reliance Capital has a net worth of Rs.6, 862 crores (US$ 1.6 billion) and total assets of Rs. 19,940 crores (US$ 4.6 billion) as of June 30, 2008 and over 26,000 employees. Reliance Securities has increased its market share among private financial companies to nearly Convenient & effective – Anytime & anywhere financial transaction capability. Launched in
April 2007. It provides the Flat fees system. It has 2.2 million customers in 1 year of official launch. It has over 5,000 outlets across 700 towns/cities. Average daily turnover is excess of Rs 2,000 crores
SHARE MARKET -OVERVIEW Share market is the market for securities where organized issuance and trading of shares takes place .It plays an important in canalizing capital from the investors to the business houses which consequently leads to the availability of funds to the companies.
Basically ,Share Market can be divided into two parts :-
1.Primary Market :It is the where new issues of securities are offered to the investors.
2.Secondary Market :An investor of a secondary market buys a security from another participant of the same and not from any issuing corporation.
Generally ,stocks are of two types:-
1.Common stock:-It gives an ownership right to the holders of the stock .The holders are entitled to receive dividends whenever the company announces . 2.Preferred stock:-These stocks also give ownership right to its holders .It‟s holder enjoy the privilege of receiving dividends from the company in preference to any common share holder.
TRADING Share Market is the market for securities where organized issuance and trading of shares takes place .Shares are certificate which represent ownership rights to the holder in a company .It plays an important role in channelizing capital from the investor to the business houses which consequently lead to the availability of funds for business expansion.
Shares in the share market are traded through:-
1.Stock Exchange :these are organized market places where stocks ,bonds and other equivalents are traded between the buyers and sellers where exchange act as counter party to both the participants in case of any default.
2.Over-the-Counter:-These are not centralized exchanges and the trade and the trade takes place through a network of dealers.
There are mainly two types of trading:-
1.Intraday Trading :In this type of trading an investor buy and sell stocks during the same day.
2.Delivery Trading :In this type of trading an investor buys the shares for holding purposes.
Share Broking Companies offer two types of share trading facilities:-
a) Offline Share Trading: In this form of trading the customer has to place order to the dealer of the stock broking firm either personally or over phone .Offline trading offers many benefits as well: 1.The one benefit that and investor appreciates the most is that they are not alone when investment decision has to be made .They are guided by the brokers. 2.There are experienced and professional brokerage companies that handle the investors investment. 3.Investors are not faced with the challenge of making vital investment decisions ,especially when they do not have much experience. 4.Also ,there is someone there to answer any question that may cause concern.
b) Online Share Trading: The client can place his order from any place he wants ,provided he has a computer with an internet connection .Online trading has made it easy for private investors to gain straight access to a range of different security market that were at once only reserved for the use of investment professionals.
Online trading has dramatically changed over the last decade .It continues to be redefined .Services have expanded to include integrated management of additional financial accounts .It has subsequently expanded in conjunction with ground breaking improvements to the traditional trading interface such as telephone interface systems.
There are several other reasons to invest online rather than offline trading:
1.Instant online access: You can gain instant access to your account ,the value of your portfolio updates immediately before your eyes .
2.Enter online trades anytime during market hours: You can enter online trades at anytime and from anywhere .This is very convenient if you live in a different time zone than the country you are trading in. It specially fits for investors with busy schedules.
3.Ease of trade :It helps in trading easily and is less costly also.
Thus, online stock trading is the easy way to buy and sell shares from the comfort of your home .Finding a company that provides us with a secure trading account can be difficult .There are many companies that offers us excellent services for trading ,but we need to find out which will meet our needs and requirements .
DEPOSITORY SYSTEM IN INDIA The Indian capital market witnessed an explosive growth between mid Eighties and mid Nineties. The total number of companies listed in the stock exchanges had grown by 72.3% from 2729 in 4702 in 1995. The market capitalization of the companies listed with stock exchanges had gone up from Rs.21, 000 crore in 1985 to more than Rs.4, 50,000 crore in 1995.The secondary market trading activity also gathered momentum. There has been tremendous growth in secondary market trading at BSE and NSE. Other regional exchanges like Calcutta, New Delhi have also become active players in the market. This sudden growth had exposed the limitations of the system. The system used was not able to withstand the
strain caused by the tremendous growth in the securities market. The entire securities market started experiencing a gridlock, posing obstacles in its growth. Moreover, this sudden growth has also magnified the risks that have always been plaguing the Indian system, viz., credit risk and systematic risk. International institutional investors wanting to invest in India had become apprehensive about the reliability of the trade settlement mechanisms used in the country, which did not match international standards. Besides affecting the inflow of foreign capital, the lack of efficient settlement systems had affected all those operating in the stock market, be it institutional investors, individual investors or brokers. They suffered due to lost trading days (liquidity), lost scripts improperly paid dividends, mistaken registration, unnecessary financing cost, inappropriate risk like failure of counter party and fraud.
Depository: A depository is an organization where the securities of an investor are held in electronic form. A depository can be compared to a bank. To avail of the services of a depository, an investor has to open an account with the depository through a depository participant, just as he opens an account with the bank. Holding shares in the account is a kin to holding money in the bank At present, India has only two depositories-National Securities Depository Ltd. (NSDL) and Central Depository Services Ltd (CDSL). NSDL is the first depository in the county, which is promoted by three major financial institutions - Unit Trust of India, Industrial development Bank of India and National Stock Exchange of India Limited. The second depository of the country (CSDL) is set up in 1999 by the Bombay Stock Exchange and Bank of India However, most of the services offered by both these depositories are similar. Today almost all the companies listed in dematerialized from with NSDL are available with CDSL.
BANK Holds funds in accounts Transfers funds between accounts Safekeeping of Money
DEPOSITORY Holds securities in accounts Transfers without handling securities Safekeeping of securities
A depository participant is an agent appointed by the depository and is authorized to offer depository services to all investors. An investor cannot directly open a De-mat account with the depository. An investor has to open his account through a DP only. The DP in turn opens the account with the depository. The DP in turn takes up the responsibility of maintaining the account and updating them as per the instructions given by the investor from time to time. The DP generates and provides the holdings statement from time to time as required by the investor. Thus, the DP is basically the interface between the investor and the depository. The person who holds a De-mat account is a beneficiary owner. In case of a joint account, the account holders will be beneficiary holders of that joint account. The De-mat account number of the beneficiary holder(s) is known as the BO Id. A DP id is the number of the depository participant allotted by the depository. Functions of Depository In the depository system, securities are held in depository accounts, which is more or less similar to holding funds in bank account. Transfer of ownership of securities is done through simple account transfers. This method does away with all the risks and hassles normally associated with paperwork. Consequently, the cost of transacting in a depository environment is considerably lower as compared to transacting in certificates. The depository system also allows distribution of dividends through the RBI„s ECS system, whenever the participating company has agreed to such services. Other entitlements such as bonuses, split-ups are also directly effected by the depository into the investor„s account. The following can be held in the depository (electronic) form: Shares (listed or unlisted) ,Stocks ,Bonds ,Debentures ,RBI Relief Bonds ,Government Securities (through a primary Dealer) ,Units of Mutual Funds ,Commercial Paper .
DEMAT ACCOUNT The term "de-mat", in India, refers to a dematerialized account for individual Indian citizens to trade in listed stocks or debentures in electronic form rather than paper, as required for investors by the Securities and Exchange Board of India (SEBI). In a de-mat account, shares and securities are held electronically instead of the investor taking physical possession of certificates. A de-mat account is opened by the investor while registering with an investment broker (or sub-broker). The de-mat account number is quoted for all transactions to enable electronic settlements of trades to take place. Access to the de-mat account requires an internet password and a transaction password. Transfers or purchases of securities can then be initiated. Purchases and sales of securities on the de-mat account are automatically made once transactions are confirmed and completed. Fees involved There are four major charges usually levied on a de-mat account: account opening fee, annual maintenance fee, custodian fee and transaction fee. Charges for all fees vary from DP to DP.
1.Account-opening fee Depending on the DP, there may or may not be an opening account fee. Private banks, such as HDFC Bank and AXIS Bank, do not have one. However, players such as ICICI Bank, Globe Capital, Karvy Consultants, Bajaj Capital Limited and State Bank of India do impose an opening fee. Most players levy this when re-opening a de-mat account. However, the Stock Holding Corporation offers a lifetime account opening fee, which allows the investor to hold on to his/her de-mat account for a long period. The fee is also refundable.
2.Annual maintenance fee This is also known as folio maintenance charges, and is generally levied in advance...
3.Custodian fee This fee is charged monthly and depends on the number of securities held in the account. It generally ranges between Rs 0.5 to Rs 1 per ISIN per month. DPs will not charge a custody fee for an ISIN on which the companies have paid one-time custody charges to the depository.
4.Transaction fee The transaction fee is charged for crediting/debiting securities to and from the account on a monthly basis. While some DPs, such as SBI, charge a flat fee per transaction, HDFC Bank and ICICI Bank peg the fee to the transaction value, which is subject to a minimum amount. The fee also differs based on the kind of transaction (buying or selling). Some DPs charge only for debiting the securities, while others charge for both. Some DPs also charge the investor even if the instruction to buy/sell fails or is rejected. In addition, service tax is also charged by the DPs. In addition to the other fees, the DP also charges a fee for converting the shares from the physical to the electronic form or vice-versa. For de-mat transactions, some DPs charge a flat fee per request in addition to the variable fee per certificate, while others charge only the variable fee.
For instance, Stock Holding Corporation has charged Rs 25 as the request fee and Rs 3 per certificate as the variable fee. However, SBI has charged only the variable fee, as Rs 3 per certificate .Some of the additional features (usually offered by banks) are as follows. Some DPs offer a frequent-trader account, where they charge frequent traders at lower rates than the standard charges. De-mat account holders are generally required to pay the DP an advance fee for each account that will be adjusted against the various service charges. The account holder needs to raise the balance when it falls below a certain amount prescribed by the DP. However, if the holders also hold a savings account with the DP, they can provide a debit authorization to the DP for paying this charge. Finally, once choosing a DP, it would be prudent to keep all accounts with that DP, so that tracking of capital gains liability is easier. This is because when calculating capital gains tax, the period of holding will be determined by the DP, and different DPs follow different methods. For instance, ICICI Bank uses the first in first out (FIFO) method to compute the period of holding. The proof of the cost of acquisition will be the contract note. The computation of capital gains is done account-wise. Indian Banking System First, an investor has to approach a DP and fill up an account opening form. The account opening form must be supported by copies of any one of the approved documents to serve as proof of identity (POI) and proof of address (POA) as specified by SEBI. An investor must have his/her PAN card in original at the time of opening of the account (mandate effective from April 1, 2006). All applicants should carry original documents for verification by an authorized official of the depository participant, under his signature. Further, the investor has to sign an agreement with the DP in a depository prescribed standard format, which details rights and duties of investor and DP. DP should provide the investor with a copy of the agreement and schedule of charges for their future reference. The DP will open the account in the system and give an account number, which is also called BOID (Beneficiary Owner Identification number). The DP may revise the
charges by giving 30 days notice in advance. Further, SEBI has vide circular dated November 9, 2005 advised that with effect from January 9, 2006, no charges shall be levied by a depository on DP and consequently, by a DP on a Beneficiary Owner (BO) when a BO transfers all the securities lying in his account to another branch of the same DP or to another DP of the same depository or another depository, provided the BO Account(s) at transferee DP and at transferor DP are one and the same, i.e. identical in all respects. In case the BO Account at transferor DP is a joint account, the BO Account at transferee DP should also be a joint account in the same sequence of ownership.
Opening a De-mat Account To start dealing in securities in electronic form, one needs to open a de-mat account with a DP of his choice. An investor already having shares in physical form should ensure that he gets the account opened in the same set of names as appearing on the share certificate; otherwise a new account can be opened in any desired pattern by the investor.
Opening a De-mat Account
Documents to be attached
Getting started 1. Passport size photographs 1. Choose a DP 2. Fill up an account opening form
2. Proof of residence (POR) - Any one of Photo Ration Card with DOB / Photo
provided by DP, and sign an agreement
Driving License with DOB / Passport
with DP in a standard format prescribed
copy / Electricity bill / Telephone bill
by the depository. 3. DP provides the investor with a copy of
3. Proof of identity (POI) - Any one of Passport copy / Photo Driving License
the agreement and schedule of charges
with DOB / Voters ID Card / PAN Card
for his future reference.
/ Photo Ration Card with DOB
4. DP opens the account and provides the investor with a unique account number, also known as Beneficiary Owner Identification Number (BO ID).
4. PAN card
BENEFITS OF DEMATERIALIZATION ACCOUNT
1- Safety: If we are holding our shares, bonds etc in physical (paper) form, there are chances of its theft, mutilation, and loss. Moreover, we are also exposed to the risks of fake papers, bad-delivery or delays at the time of transfer of physical securities. However, in DEMAT accounts; we can preserve our long-term investments safely and securely.
When we want to sell our dematerialized shares or redeem our
debentures in DEMAT account; there are no hassles of filling up transfer forms, sending redemption requests or any other messy, costly and time-consuming paper work. We can conveniently transfer our securities through electronic transfers or just by signing one „Delivery Instruction Slip‟, which is nothing but our cheque book for DEMAT Accounts.
OtherBenefits: Apart from the safety and convenience, there are lot more advantages of opening DEMAT accounts. Here are few of the most necessary reasons for having a DEMAT account. We can park most of our investments including shares, bonds, debentures, Gold Units, NSC and bonds in our DEMAT account. We might not immediately realize the benefits of having all the investments in DEMAT form. For instance, if we change our residence, we just have to write to the DP (Depository Participant), which automatically gets our new address registered with all the companies where we have invested our money. We do not have to remember the due dates of maturity of bonds, NSC and debentures, as the redemption proceeds are automatically credited to our bank account, which is linked with our DEMAT account. We receive all the dividends and interests directly in our linked bank account. In case of bonus, rights, split, merger or any other corporate actions, everything takes
place automatically. We do not have to do anything except to file the physical intimation letters sent by the Registrar and Transfer Agents.
Nowadays with the advent of online trading, we can perform online all the activities associated with buy, sell and transfer of shares. With a single nomination in your DEMAT account, we are nominating our legal heirs to all the investments held by us. For many public issues of bonds and debentures of reputed and trustworthy companies, it is necessary to have a DEMAT Account, as the companies do not allot securities in paper form. Since most of the process of buying and selling dematerialized securities is electronic, there are no chances of signature mismatch. Elimination of problems related to selling securities on behalf of a minor. Elimination of problems related to change of address of investor, transmission etc. Reduction in handling of huge volumes of paper periodic status reports.
So with Dematerialized Securities, the entire process of transferring shares, bonds and other financial assets has become smooth and swift. DEMAT Accounts offer numerous advantages and hence it makes sense for the retail investors to open DEMAT Accounts as early as possible.
RELIANCE DEMAT ACCOUNT Procedure 1. Fill de-mat request form obtained from a depository participant (DP) with whom your depository account is opened. 2. Deface the share certificate(s) you want to dematerialize by writing across Surrendered for dematerialization. 3. Submit the DRF & share certificate(s) to DP. DP would forward them to the issuer . 4. After dematerialization, your depository account with your DP would be credited with the dematerialized securities. Benefits of having a reliance money account 1.It’s cost effective You pay comparatively lower transaction fees. As an introductory offer, we invite you to pay a flat fee of just Rs. 950/- and transact through reliance money. 2.Its offers single – window access Through reliance money‟s associates, you can transact in equity, equity and commodities derivatives, offshore investments mutual funds, IPO‟s life insurance, general insurance, money transfer, money changing and credit cards, amongst others.
3.It’s convenient You can access reliance money‟s services through
The phone (call & transact)
Our all – India network of associates
4.It’s Safe Your account is safeguarded with a unique security number that changes every 32 seconds. This number works as a dynamics password to keep your account extra safe.
5.Its provides you a 3-in-1 facility. You can access your banking, trading and de-mat account through a single window and transfer funds across accounts .
It provide you value- added services Reliable research, including views of external experts with an enviable track record
Live news updates CEO‟s / expert views on the economy and financial markets
Tools that help you plan your investments, tax, retirement, etc. in the personal finance section
Risk Analyzer for analysis of your risk profile
Asset allocators to build an appropriate investment portfolio
Innovative use of technology for facilitating convenient trading.
A safe and convenient way to hold securities; Immediate transfer of securities; No stamp duty on transfer of securities; Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc.;
Reduction in paperwork involved in transfer of securities; Reduction in transaction cost; No odd lot problem, even one share can be sold; Nomination facility; Change in address recorded with DP gets registered with all companies in which investor holds securities electronically eliminating the need to correspond with each of them separately;
Transmission of securities is done by DP eliminating correspondence with companies;
Holding investments in equity and debt instruments in a single account
Required Documents The extent of documentation required to open a de-mat account may vary according to your relationship with the institution. If you plan to open a de-mat account with a bank, a savings, current and, or other account for which the holder have been issued a check book, such holder has an edge over the non-account holder. In fact, banks usually offer additional incentives to customers who open a de-mat account with them. Along with the application form, your photographs (with co-applicants) and proof of identity/residence/date of birth have to be submitted. The DPs also ask for a DP-client agreement to be executed on non-judicial stamp paper. Here is a broad list:
A canceled check, preferably MICR
Proof of Identification
Proof of Address
Proof of Pan card (mandatory)
Recent photographs, one and, or more
For proof of identification and, or address self-attested facsimile copies of PAN card, Voter‟s ID, Passport, Ration card, Driver‟s license, Photo credit card, Employee ID card, Bank attestation,
latest IT returns and, or latest Electricity/Landline phone bill are sufficient. While they only ask for photocopies of the documents, they will need the originals for verification..
Points To Remember 1. Only securities admitted by NSDL can be dematerialized. The list is available with your DP. 2. Only securities registered in the name of the account holder can be dematerialized. 3. Dematerialization is normally completed within 15 days after the share certificates have reached the issuer/ their R&T Agent. Thus it may take you a month from the date you hand over shares, to receive de-mat credit. 4. Dematerialization would be done only when the issuer / their R&T Agent is satisfied of genuineness of securities & ownership status. 5. All the joint holders should sign the DRF. 6. The pattern of holding in the DRF should match the pattern of holding on the share certificate & the pattern in which account is opened. 7. De-mat requests with name(s) not matching exactly with the name(s) appearing on the certificates merely on account of initials not being spelt out fully or put after or prior to the surname, would be processed, provided the signature(s) of the client(s) on the DRF tallies with the specimen signature(s) available with the issuer/ their R & T agent. 8. If the signature in the DRF does not match with the signature available with the issuer/ their R & T agent, the issuer/ their R & T agent may at the time of de-mat confirmation, ask for additional documentation (like bank attestation etc.) to prove that the certificate belongs to the person who forwarded the DRF. 9. In case there is any problem in processing the DRF, contact your DP and if he cannot resolve the problem you may contact NSDL.
Change is the law of nature”. There were times when man was a Wanderer or a normal. He himself had to go place to place in search of food, water and now everything is available at your doorstep just at the click of the mouse. The growth of information technology has affected almost all sectors of life.
every information at our doorstep. When Internet has affected all sectors he could “stock markets” the most important player of the economy, has remained far behind? Like all other sectors Internet has set its feet in the stock markets also. The Stock Market system provides single, nation wide securities. It enables LAN investors in one part of the country to trade at the best quotes with an investor located in any other part of the country through the members of the stock exchange and subsequently clears and settle the trade in an efficient and cost effective manner. The primary objective of the Stock Market is to provide clear opportunity to the investors throughout the country to trade any security irrespective of the size of the order or the broker through whom the order is routed. This provides the facility to execute the buy order at the lowest price in the stock market located anywhere in the country without any extra cost to the investors.
There will be no trading floor in the exchange. Instead, each trading member will have a computer at his own office anywhere in India which will be connected to the central computer system at the NSE through leased line or VSATs (very small aperture terminals), for an interim transition period of 6 months & subsequently by satellite link. VSATs are relatively smaller dishes similar to dish antenna for cable TV & have the benefit of not being very expensive. A satellite network makes it possible to connect almost all the parts of the nation quickly as it is easy to install, as against the ground lines such as dial up modems leased lines, which are prone to disruptions, satellite links, on the other hands ensure high speed, availability and quality of the connection. This mode of trading is known as "Online Trading"
Introductionof online trading inIndia Online trading started in India in February 2000 when a couple of brokers started offering an online trading platform for their customers.
Online trading by NSE & BSE
The central computer located at the Exchange is connected to the workstations of the Brokers through satellite using Very Small Aperture Terminals (VSATs). Orders placed is based on price and time priority. Both the exchanges have switched over to a fully automated computerized mode of trading known as BOLT (BSE On Line Trading) and NEAT
It facilitates more efficient
processing, automatic order matching, faster execution of trades and transparency.
Objectives of PresentTrading System: Reduce and eliminate operational inefficiencies inherent in manual system Increased trading capacity in Stock Market Improve market transparency Eliminate unmatched trades and delayed reporting Provide for on-line and off-line monitoring control and surveillance of the market. Promote fairness and speedy matching Smooth market operations using technology while retaining the flexibility of conventional treading practices Set up various limits, rules and controls centrally. Consolidate the trades data on electronic media to interface will the broker„s back office system Provide public information on scrip prices, indices for all users of the system Provide analytical data for use of Stock Market.
FeaturesOf Online Trading The Online Trading is having many features which make it most suitable for the investors to go for. Some of these features are as follows: 1.Freedom of Information: The Internet can provide a new sense of control over your financial future. The amount of investment information available online is truly astounding. It's one of the best aspects of being a wired investor. For the first time in history, any individual with an Internet connection can:
Know the price of any stock at any time
Review the price history of any stock in chart format
Follow market events in-depth
Receive a wealth of free commentary and analysis about stock
markets and the global economy
Conduct extensive financial research on any company
2.Control our money: One of the great appeals of using an online trading account is the fact that the account belongs to you, and is under your direct control. When you want to buy or sell stock, you no longer need to call your broker on the phone; hope that he is in the office to place your order; possibly argue with the broker about the order; and hope that the transaction is executed instantly. 3.Access to the market: At the most basic level, an online trading account gives you more agility in buying and selling stocks. This is through sophisticated information streams, dedicated trading platforms and sophisticated tools for accessing the markets. 4.Offers greater transparency: Online trading offers you greater transparency by providing you with an audit trail. This involves a complete integrated electronic chain starting from order placement, to clearing and settlement and finally ending with a credit into your depository account. All these stages are subject to inspection, thus bringing in transparency
5.Reduces the settlement risk: This method of trading reduces the settlement risk for the investor, as in this case all short sell orders are squared off at the specified cut-off time and not allowed to be carried forward.
6.Instant trade order confirmations:
Every trade is confirmed immediately and you will receive an on-screen confirmation following every trade with full details for your records. This avoids costly errors that would have been discovered when it is too late. 7.Integrated Accounts:
Our Bank, Depository and Trading account are integrated for our convenience. Various broking houses provide access to many of the popular banks.
BENEFITS OF ONLINE TRADING:
1) Less Costly: The most significant advantage of the Online broking is the cost reduction in the brokerage. Due to the power of the Internet one has the privilege of becoming the clients of really large brokerages with the benefits of enjoying the low charges before enjoyed only by the big players. As the DP account has got linked to the trading account most players do not charge a minimum transaction cost thus truly allowing one to buy a single share and achieve meaningful rupee price averaging whatever be your buying power.
2) Peace of Mind: One can never have complete peace of mind but online investing does away with the hassles of filling up instruction slips, visits to the broker for handing over these slips and consequent costs.
3) Keeping Records: The site one trades on keeps a record of all transactions down to unexecuted orders
and cancelled orders thus keeping one abreast of all your transactions 24 hours a day. No paperwork means more time at one‟s disposal for research and analysis.
4.) Ease of trade: It is the ease of doing the trade through net, with a click of mouse; one can buy or sell any share that is dematerialized. Other than the above-mentioned advantages, Internet trading provides some additional advantages to the investors, brokers and also helps the nation to Channelize the resources. Net trading would increase competition in the market hence increase in the bargaining power of the investors.
PROBLEMS OF ONLINE TRADING .1) Server not found: This may appear on one‟s screens when he is desperately trying to get out of an unprofitable position. Some of the online sites are providing a telephone number for use in case their sites are overloaded or their server down.
2.) Connectivity of the Broker with NSE : Recently ICICI Direct had a connectivity problem with the NSE for two and half hours during trading hours. This problem is rare but be alive to its possibility.
3.) Cyber attack: In the event of a malicious attack on the systems of one‟s broker he is protected only if the company is taking proper precautions against such attacks and if proper backup is regularly been taken. He may like to choose a brokerage that has a stated security policy and contingency plan in place.
4) Non-availability of a seamless interface: As a client one will access the NSE through a server of the online brokerage and this may involve queuing delays. If a number of client access the server the server takes its own time sending the orders to the NSE server. He must check out the seamlessness of this interface before selecting an online brokerage. The faster the orders are processed the more seamless is the interface.
5.) Non- availability of personalized advice:
If he wants advice on a particular stock in his portfolio he may not even be able to get that.
6.) Margin: If Internet trading alone is not fast and furious enough; many people are trading on margin. That is where the brokerage firm lends you money by leveraging his account, allowing him to buy a large amount of securities by putting up only a small amount of money. He may have forgotten what he read in the small print of his agreement, but the brokerage firm has the right to change the maintenance margin requirements without any warning or notice to him. In fact, the firm has the right to liquidate his securities holdings (and it can pick and choose which ones) without any notice to one if he fail to meet the margin call. And there he was leveraged to the hilt, hoping to hit a home run when he discovered that he is required to make a large deposit that he cannot make. The next thing one know, the firm is selling off his securities at a point in time that is not the best for him. These are the perils of trading on margin.
COMPARATIVE ANALYSIS OF VARIOUS STOCK BROKING COMPANIES ON THE BASIS OF ACTIVATION CHARGES, BROKERAGE COMPARISON TABLE OF BROKERAGE CHARGES IN INDIA
Brokerage for Delivery
Brokerage for Intraday trading
R K Global Shares & Securities brokerage charges
0.20% - 0.30%
0.02% - 0.03%
SBICAP Securities brokerage charges
Sharekhan brokerage charges
0.03% - 0.50%
0.03% - 0.10%
Motilal Oswal brokerage charges
0.30% - 0.50%
0.03% - 0.15%
5 paisa brokerage charges
0.25% - 0.85%
Angel Broking brokerage charges
0.02% - 0.03%
ICICI direct brokerage charges
Indiabulls brokerage charges
0.25% - 0.50%
0.05% - 0.10%
HDFC Securities brokerage charges
UTI Securities brokerage charges
Religare brokerage charges
0.20% - 0.30%
0.02% - 0.03%
Reliance Money brokerage charges
India info line brokerage charges
Angel Broking Ltd.
Annual opening charges-Rs 390 Annual Maintenance Charge (AMC)-Rs300 Brokerage- 30p (delivery), 6p (intra-day) HDFC Securities Account Opening Charge (AOC): Rs. 799 Annual Maintenance Charge (AMC): Rs. 825 Brokerage: Higher of Rs.25 or 0.5% of transaction value (delivery).Higher of Rs 25 or 0.05% of transaction value (intra –day) ICICI Direct Account Opening Charge (AOC): Rs. 975 Annual Maintenance Charge (AMC): Rs. 500/450 (paper/email statements) Brokerage: 0.55% (delivery). 0.05% (intra-day) India bulls Account Opening Charge (AOC):Rs900 Annual Maintenance Charge (AMC):Rs 0 Brokerage:0.25(delivery),0.05 (intra day) Kotak Securities
Account Opening Charge (AOC):Rs750 Annual Maintenance Charge (AMC): Rs. 50 (1st year free) Brokerage: 59p (delivery). 6p (intra-day) Reliance Securities Account Opening Charge (AOC):Rs950 Annual Maintenance Charge (AMC): Rs. 190 (1st year free) Brokerage: Offline - 1p (delivery). 1p (intra-day)
Prof.G. Vasudha, 2006, “Dematerialisation: An Introduction” Dematerialisation is the process of converting the physical form of shares into electronic form. Prior to dematerialisation the Indian stock markets have faced several problems like delay in the transfer of certificates, forgery of certificates etc. Dematerialisation helps to overcome these problems as well as reduces the transaction time as compared to the physical segment. The article discusses the procedures, advantages and problems of dematerialisation. The Indian Stock markets have seen a major change with the introduction of depository system and scrip less trading mechanism. There were various problems like inordinate delays in the transfer of share certificates, delay in receipt of securities and inadequate infrastructure in banking and postal segments to handle a large volume of application and storage of share certificates .To overcome these problems physical dealing in securities should be eliminated . The Indian stock market introduced the system of dematerialisation recognizing the need for scrip less trade.
Nidheesh K B , 2008,“Demat Processing in India” A new phase in the Indian stock markets began in the 1970s, with the introduction of Foreign Exchange Regulation Act (FERA) that led to divestment of foreign equity by the multinational companies, which created a surge in retail investing. The early 1980s witnessed another surge in stock markets when major companies such as Reliance accessed equity markets for resource mobilization that evinced huge interest from retail investors. A new set of economic and financial sector reforms that began in the early 1990s gave further impetus to the growth of the stock markets in India. As a part of the reform process, it became imperative to strengthen the role of the capital markets that could play an important role in efficient mobilization and allocation of financial resources to the real economy. Towards this end, several measures were taken to streamline the processes and systems including setting up an efficient market infrastructure to enable Indian finance to grow further and mature. The importance of an efficient micro market infrastructure came into focus following the incidence of market abuses in securities and banking markets in 1991 and 2001 that led to extensive investigations by two respective Joint Parliamentary Committees. The Securities and Exchange Board of India (SEBI), which was set up in 1988 as an administrative arrangement, was given statutory powers with the enactment of the SEBI Act, 1992.
Objectives of the study is To study and analyze the process of Dematerialization and Investors opinion towards De-mat Processing., To know and explain procedure for opening of De-mat account and process of dematerialization of securities to eliminate the problem related with physical holdings of securities., To explain the advantages of Dematerialization of securities, convince and make them to dematerialize their securities., To know the problem faced by the investor and reason for physical holdings of securities without dematerialization of securities., To give awareness among the investors about De-mat and to make them to open De-mat Account. Delbar Fafarpour (2006) Online services offers customers a splendid display of benefits such as enhanced control, ease of use and reduced transaction charges .Consequently ,online services have grown rapidly and have emerged as a leading edge of service industry .Providing online services in developed stock exchanges like U.S.A ,France etc has lead market to become more competitive .
Rakesh jhunjhunwala (2007)
Online trading account has changed the way India has been trading and thus all these aggressive online
1. Stock broking is one of the first industries in India where Internet has shown its vast potential. Online trading has helped to cut through sub broking intermediaries, push down transaction costs, bringing in transparency and thus has empowered the investor as a whole.
2. Erstwhile era of trading involved cries across the floor of the stock exchange to trade in paper shares
3. De-mat trading means that shares are held in electronic form with depositories which are namely NSDL and CSDL. De-mat trading was introduced in phased manner from 1999. De-mat trading is a prelude to online trading. Dematerialization of all shares has provided a platform for online trading and today online trading has spread its wings to futures/derivatives trading in stock markets, investment in mutual funds, post office schemes, insurance, applying for initial public offer and commodity trading.
Ryan ( 2010) The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) three of the largest exchanges in India have been conducting online trade successfully for some time. The
emergence of online exchanges allows faster, simpler and flexible transactions with the help of online portals. Online Stock Trading has become the most popular way to trade in stocks. No longer do they must indulge with a broker and pay high commissions. The world wide stock exchanges has made a major shift from the traditional process of trading and now conduct a bulk of its business online through its brokers and partners. The Vice President of NSE-IT G.M Shenoy says that the primary objective of of NSE was to provide fair, equal and transparent access all NSE nationwide location and also to provide connectivity to the trading members. For investing in stocks, Investor requires a Stock Broker to buy and sell shares in stock exchanges. Selecting online Stock brokers for online stock trading can be a difficult decision for new investors since there's lots of options to select from. Reliable brokerage firms are those which not guide you for investing in right stock but also give you important knowledge about the stock trading.
URPUR ( March 27, 2012) Though the de-mat system in its present form has served the interest of large investors, it now requires improvements to make it user-friendly for the retail investors and responsive to the changing profile of a new class of investors The system of dematerialization of shares (de-mat accounts) has certainly helped to improve the stock market activity in our country. The considerable expansion in daily turnover in both the stock exchanges is a testimony of its utility to the investors. There are at present about 20 million de-mat accounts with both the central depositories, namely NSDL and CDSL together, which is mainly due to the regulatory requirement to compulsorily deal in dematerialized form if you want to transact through the recognized stock exchanges.
RESEARCH METHODOLOGY Every project work is based on certain methodology, which is a way to systematically solve the problem or attain its objectives. It is a very important guideline and lead to completion of any project work through observation, data collection and data analysis. According to Clifford Woody, “Research Methodology comprises of defining & redefining problems, collecting, organizing &evaluating data, making deductions &researching to conclusions.” Accordingly, the methodology used in the project is as follows:
Defining the objectives of the study
Framing of questionnaire keeping objectives in mind (considering the objectives)
Feedback from the clients and others
Analysis of feedback
Conclusion, findings and suggestions.
Research design: The research design adopted in this study is Descriptive design. A Descriptive research design is the one which is descriptive of the state of affair as it exist at present. It includes survey and fact finding enquiries of different kinds. I used this design to find out the respondents attitude and opinion .
Sample area: Sample for the research is taken from clients of Reliance Securities Limited, Jalandhar and other people of Jalandhar .
Selection of sample size: In order to take a reasonable sample size and not to disturb the people, a sample size of reasonable strength has been taken in order to arrive at the conclusion.
Universe of the study: 75 people have been selected at random from the city and feedback forms (questionnaire) have been obtained and some were called through phones and their feedback was taken.
Sampling technique used: The technique of Random Sampling has been used in the analysis of the data. Random sampling from a finite population refers to that method of sample selection, which gives each possible sample combination an equal probability of being picked up and each item in the entire population to have an equal chance of being included in the sample. This sampling is without replacement, i.e. once an item is selected for the sample, it cannot appear in the sample again.
Data collection: To determine the appropriate data for research mainly two kinds of data was collected namely Primary & Secondary data as explained below: Primary Data: Primary data are those, which were collected afresh & for the first time and thus happen to be original in character. However, there are many methods of collecting the primary data; all have not been used for the purpose of this project. The ones that have been used are Questionnaire, Tele-calling. Secondary Data: Secondary data is collected from previous researches and literature to fill in the respective project. The secondary data was collected through Text books, Articles, Journals and Websites.
Graphical tool used: The main statistical tools used for the collection and analyses of data in this project are:
Research technique: Questionnaire method of data collection is quite popular, particularly in case of big inquiries. It is being adopted by private individuals, research workers private and public organizations and even by Government. In this method a questionnaire is sent to the persons concerned with request to answer the questions and return the questionnaires consists of a number of questions printed or typed is definite order on a form or set of forms. In this project questionnaires method is adopted and some feedback was taken on the phones by calling the people.
LIMITATIONS OF THE STUDY 1. Time: As the project is prepared for academic purpose only, it suffers from the limitations of time, due to which analytical study into all the strategies adopted by the organization was not possible.
2. Limited area: All this study is limited to Jalandhar only.
3. Unavailability of required data: All the secondary data required was not available.
4. Presence of Human Error:
Some respondents have not given the proper answers, they are not aware of the objectives of the research undertaken.
People were not fully interested to interact with researcher.
Most of people were not ready to give adequate information.
5. Non Co-operation of some Respondents: Some Respondents do not properly cooperated for giving answers. The basic reason they are giving for non cooperation was non-availability of time.
To know about problems faced in trading by traders in Jalandhar City.
To assess the perception of traders about Reliance securities limited in Jalandhar City.
To determine the satisfaction levels of consumers with Reliance securities limited in Jalandhar city.
To know the market share of Reliance Securities Ltd.
To know the mechanism in the De-mat.
To study the process of De-mat.
To know the advantages of the De-mat.
To compare Reliance Securities ltd. With other broking firms in respect of brokerage and activation charges.
DATA INTERPRETATION AND ANALYSIS 1. Awareness about online trading-
Table 1: Table showing awareness about online trading Options % Of Responses Yes 75% No 25% Total 100
80% 70% 60% 50% 40% 30% 20% 10% 0% Yes
Fig 1: Graph Showing Awareness about online trading. Interpretation: With the increase in use of technology the awareness towards online share trading has increased a lot .The awareness is expected to increase further with the increase in internet education.
2. Problem faced by people regarding trading
Table 2: Table showing problems faced by people regarding tradingOptions % of Responses Lack of knowledge 50 Unsatisfactory services 30 Charges by the broking firm 20 Total 100
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Lack of knowledge
Charges by broking firm
Fig 2: Graph showing problems regarding trading among people. Interpretation: Most of the people are not having full knowledge about trading .This is the reason people are having their de-mat accounts but they don‟t trade .Unsatisfactory services provided by the firms also creates problems to the clients.
3.Awareness about the products and services offered by Reliance Securities Ltd. Table 3: Table showing awareness about the products and services offered by Reliance Securities Ltd. Options % of Responses Yes 40% No 60% Total 100
70% 60% 50% 40% 30% 20% 10% 0% Yes
Fig 3:Graph showing awareness about the products and services offered by Reliance Securities Ltd. Interpretation: Although Reliance is a big brand people are not aware about all the services provided by Reliance Securities Ltd. The company should concentrate towards promotional tools and focus on product awareness rather than brand awareness.
4.Reason for opening the De-mat account Table 4:Table showing reasons for opening de-mat account Options % Of responses Someone suggested 60 Have an interest in trading 40 Total 100
70% 60% 50% 40% 30% 20% 10% 0% Someone suggested
Have an interest in trading
Fig4:Graph showing the reasons for opening de-mat account Interpretation: It was observed that most of the people have opened their accounts on someone‟s suggestion and there are only few people who actually have interest in trading and actually trades .Most of the clients were inactive.
5.Investment in share market by people Table5:Table showing percentage of investment in share market by people Options % of Responses Yes 35% No 65% Total 100
70% 60% 50% 40% 30% 20% 10% 0% Yes
Fig5:Graph showing percentage of people investing in share market Interpretation: Most of the people do not invest in share market and the reasons are lack of proper knowledge and they think that it is more risky.
6.Frequency of trading Table 6:Table showing frequency of trading Options Weekly Monthly Yearly Total
% of Responses 7% 23% 70% 100
80% 70% 60% 50% 40% 30% 20% 10% 0% Weekly
Fig6. Graph showing frequency of trading Interpretation: Among the people who invest in share market very few are there who do regular investments and most of them do it very often.
7. Broking firm with which investment is done Table7: Table showing Broking firm with which investment is done Options %of Responses Reliance Securities Ltd. 25% India Infoline 18% Angel Broking 12% Others 45% Total 100
45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Reliance Securities Ltd.
India Info Line
Fig7:Graph showing Broking firm with which investment is done. Interpretation: Many people are associated with Reliance Securities Ltd.
8.Satisfaction with the Broking firm Table8:Table showing satisfaction with the broking firm Options % Of Responses Satisfied 45% Not satisfied 30% Neither satisfied nor dissatisfied 25% Total 100
45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Satisfied
Neither satisfied nor dissatisfied
Fig8:Graph showing satisfaction with the broking firm Interpretation: Some people were satisfied and some were not satisfied by the services provided by the broking firms and wanted improvements in the services so that they can trade easily.
9.Perception regarding Reliance Securities Ltd. Table9:Table showing perception regarding Reliance Securities Ltd. Options % Of Responses Good 65% Average 25% Bad 10% Total 100
70% 60% 50% 40% 30% 20% 10% 0% Good
Fig9:Graph Showing perception regarding Reliance Securities Ltd. Interpretation: Except a few most of the people have good image about the company .The people not having good image had problems regarding services.
10.Improvements required by Reliance Securities Ltd. Table10:Table showing improvements required by Reliance Securities Ltd.
Options Customer service Products Technical improvement Relationship manager‟s support Total
% Of Responses 40% 25% 20% 15% 100
40% 35% 30% 25% 20% 15% 10% 5% 0% Customer service
Relationship manager's support
Fig10:Graph showing improvements required by Reliance Securities Ltd. Interpretation: Reliance securities need to improve their services so that more and more people invest through them .Many of the clients had the problems related to services.
FINDINGS OF THE STUDY
Most of the traders find lack of knowledge and unsatisfactory services of broking firm as biggest problem in trading.
Most of traders perceive Reliance Securities Ltd. as a good broking firm.
The clients of Reliance Securities Ltd suggested that it should improve more in
customer services and provide much better services.
People are aware about Reliance but not totally aware about the product and services offered by it.
Due to more use of technology ,more people are aware about online trading.
SUGGESTIONS AND RECOMMENDATIONS While interacting with the people I found that most of the customers do not invest after opening their de-mat account .They are not aware about investing in securities market. So some suggestions are :
1 .The brand image of Reliance Securities is good in market but according to customers the company should focus on providing better services.
2. They should focus on print and electronic media advertisement to make people more about them.
3. They should provide proper guidance to their customers about de-mat.
4. They should provide offers and facilities to their customers to increase their attractiveness about de-mat.
5.Only de-mat accounts of those people should be opened who are really interested in trading .
6.Reliance Securities Ltd. should conduct some kind of mock classes for new Investors who even don‟t know about share market.
CONCLUSION Reliance Securities Ltd. Have a good image among the people of Jalandhar city and most of the people are having their trading accounts with Reliance Securities Ltd.The services provided by the firm are also satisfactory. The firm should focus on the people who are not trading inspite of having the accounts and they should provide full knowledge to their customers and the customers who are having issues related to services ,the services should be improved and their queries should be handled efficiently .At last all can be concluded that Reliance Securities Ltd. Is still a growing industry and it provides a security to the people having account with them by the special use of key
BIBLIOGRAPHY References 1. Narendra Jadhav, (2007), “Development of Securities Market – The Indian Experience” , available at: http://drnarendrajadhav.info/drnjadhav_web_files/Published%20papers/Development%20of%20 Securities%20Market%20by%20Narendra%20jadhav.pdf
http://www.rsec.co.in/products-and-services/financial-Services/ http://www.hdfcsec.com/ http://content.icicidirect.com/newsitecontent/Home/Home.asp http://www.angelbroking.com/ http://en.wikipedia.org/wiki/Demat_account http://www.reliancecapital.com/Site/RELIANCE_CAPITAL.html http://www.scribd.com/doc/13020048/Depository-System
Respected Sir/Madam I am Sushma Dogra, a student of MBA 3rd semester, DAV institute of engineering and technology, Jalandhar and I am conducting a survey for doing research on “De-mat account and Online trading‟‟ .Your valuable opinion and cooperation will of immense help to me in my research. I assure you that the data provided by you will be used only for academic and research purposes and will be kept confidential. Note- this questionnaire is to be filled only by the respondents who have a DEMAT account.
Personal Details 1. Name of the Respondent ………………………………………….
Thank you for your cooperation. QUESTIONS Q1.Are you aware about online trading ? a)Yes b)No Q2.What problems are related to trading? a)Lack of knowledge b)Unsatisfactory services c)Brokerage charges Q3.Are you aware about the products and services offered by Reliance Securities Ltd.? a)Yes b)No Q4.Why you opened the De-mat account? a) someone suggested b)Have an interest in trading Q5.Do you invest in share market ?
Q6.How frequently you trade? a)Weekly b)Monthly c)Yearly Q7.With which Broking firm you investment? a)Reliance Securities Ltd. b)India Info line c)Angel Broking Ltd. Q8. Satisfaction with the Broking firm a)Satisfied b)dissatisfied c)Neither satisfied nor dissatisfied Q9.What is the perception regarding Reliance Securities Ltd.? a)Good b)Average c)Bad Q10.What improvements are required by Reliance Securities Ltd.? a) Customer service b) Products c) Technical improvement d) Relationship manager‟s support