OBJECTIVES & METHODOLOGY

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OBJECTIVES OF THE STUDY

It is said that an objective well defined is half done. Thus in order to

make sure that the proper survey ensures defining clear-cut objective
and outline is a prerequisite. Objective serves as torchlight in a project.
It lays down a well-defined path between start and the end and that is the
goal. As also an objective is well defined and it is important for the
research study that a scholar undergoes.

It is an action, a purpose, which is directed to a person to conduct a

study. It represents a fact having actual existence of outside the mind or
a goal for which the study is to be conducted.

The objective of our study is:-

1) To know the various functions which are conducted for day-to-day

operations in RELIANCE MONEY?

2) To know the various norms adopted by RELIANCE MONEY.

3) To know the various products and services rendered to its customers.

4) To know whether the services provided by RELIANCE MONEY is

able to attain its customer’s satisfaction or not.

5) To find and try to bridge the gap between the expectations and
experiences of the customers in case of dissatisfaction.

6) To know how the branch functions in terms of sales and operations.

7) To market and to promote the products of RELIANCE MONEY.

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METHODOLOGY ADOPTED

Whether it is an army attack to the enemy air base or the way to the
theme park we have to proceed in a very cautious and a planned way.
One mistake could give us heavy losses. We know what to do, how to do
in a perfect way and what should be the procedure so that we are not lost
in a way is dwelled by methodology adopted. In dealing with any real
life problem it is often found that data at hand is adequate, hence it
becomes necessary to collect data rather appropriate. There are several
ways of collecting data while doing the project or any survey. In this
project, I have collected from two sources that are:
1. Primary sources
2. Secondary sources

(a) PRIMARY SOURCE:

I have gathered information about our project from the interaction with
the customers of our company i.e. Reliance Money. The sampling
method used was basically convenience sampling and most of the calls
made were cold calls made on the generated database of recipients of
other companies.

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 (b) SECONDARY DATA:

The secondary data, I have collected from the various websites of

reliance money, various journals, magazines etc.

The methodology adopted in the procedure followed in order to give the

projects its shape is:

  Having a proper understanding of working of a financial

company.

  Inquiring and looking into the practicalities of work

environment to have a correct insight of process adopted.

 Gaining information from files, documents, folders and soft

copy stored in system.

  Seeking information from the staff and taking their views in

consideration.

 Browsing the website of various financial institutions and BSE

and NSE for the necessary information required.

  Finally compiling the primary and secondary data gathered, then

making a study of option available.

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EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY
This report is structural as well as procedural study about the extent of
flexibility and transparency present inside the framework of financial
industry.

Organization is constantly changing. These changes often result from

events which alter the establishment status quo in some way such as the
introduction of new technology process changes organization merges or
restructuring.

Reliance money in its span of two years has undergone many

innovations whether it is in its field of technologies or whether it is
customer satisfaction. In this period of our training we have learnt all the
operations done by reliance money i.e. opening of D-MAT
account, filling forms, verification of the form, rectification of the form,
checking the status of the clients, handling the queries of the customers,
gaining knowledge about the various products of reliance money like
IPO, Commodities, Derivatives, Life insurance, etc. and this report also
presents a brief idea about the issue of credit cards.
During my project we also came to know about the customer service
which the company provides to its customers. As far as data collection is
concerned we have both primary as well as secondary data in this report.
I have collected primary data by interactive sessions with the working
officials of the company and secondary data are collected which are
more qualitative in nature from the manuals, internet, corporate articles
and other preserved data by the company.

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Reliance money is equally aware of the needs of its customers and helps
them in giving meaning and content. This company has steadily
progressed over the years from strength to strength. It provides online
share trading facility to the customers. Reliance money is also into life
insurance which provides a very good opportunity to the customers by
giving them a life cover and securing the future of their families. As I
dealt with both of these two products of reliance money so I got a good
exposure about the general expectations of a customer and what he
usually experienced while dealing into investment products. To meet
these expectations reliance money is into the concept of franchisees
where private franchisees are given to individuals so that the coverage
area of reliance money can be increased and word load on employees
can be decreased in order to increase Relationship Management.

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INTRODUCTION TO INDUSTRY

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VISION
Empowering everyone live, their dreams we will leverage our strength
in executing complex global scale projects to make leading edge in
broking services, affordable by all individual investors in India. We will
offer unparalleled value to create investor delight and enhance business
productivity. We will also generate value for our capabilities beyond
Indian borders while enabling millions of Indian’s knowledge workers to
deliver their services globally.

MISSION

Our Mission is to keep the customer satisfaction by Creating unmatched

value for everyone through dependable, effective, transparent and
profitable broking services as focal point of all our operations, adopt the
best international practices in customer service, be the most innovative
in product development, establish presence all over India, ensure
sustained value addition to all stake holders and to uphold Corporate
Value & Corporate Governance.

GUIDING PRINCIPLES

Customer Care and Satisfaction

Corporate Governance
Creativity and Innovation
Competitiveness
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ABOUT RELIANCE CAPITAL

We all know the effect of the word Reliance on us. A company which
has entered almost every arena of business and created wonders. Every
project taken up by the company turns into a golden project. The
company has something, which we can call as, The Midas Touch.
Reliance Capital Ltd is a part of the Reliance - Anil Dhirubhai Ambani
Group. Reliance Capital is one of India’s leading and fastest growing
private sector financial services companies, and ranks among the top 3
private sector financial services and banking companies, in terms of net
worth. Reliance Capital has interests in asset management and mutual
funds, life and general insurance, private equity and proprietary
investments, stock broking and other activities in financial services.
Reliance Capital has a wide Structure that is as follows:

Reliance Money is a part of Reliance Capital that comes under

Anil Dhirubhai Ambani Group (ADAG). It is a distribution and a
broking house that provides its customers with Online as well as
Offline Trading Facility. Reliance Money is the electronic
transaction platform associated with Reliance Capital, one of India's
leading and fastest growing private, ranked amongst the top 3 private
sector financial services and banking companies, in terms of net worth.

GROUP Anil Dhirubhai Ambani Group

CO. CHAIRMAN Mr.Anil Ambani

CEO Mr.Sandeep Bandopadhyay

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STARTED SINCE Publicly launched on: April 11, 2007 CAPITAL

NO. OF BRANCHES More than 150 Branches

NO. OF FRANCHISEES 700

INDUSTRY TYPE Share Broking Firm

PRODUCTS Equity
IPOs
Derivatives

Commodities Trading

Mutual Funds

Insurance

Offshore Investment

Reliance Money offers a comprehensive platform, offering an

investment avenue for a wide range of asset classes. Its endeavor is to
change the way India transacts in financial markets and avails financial
services. Reliance Money offers a single window facility, enabling us
to access, amongst others Equity, Equity and Commodity
Derivatives, Offshore Investments, IPOs, Mutual Funds, Life
Insurance and General Insurance products. Reliance Money is the most
cost-effective, convenient and secures way to transact in a wide range of
financial products and services.

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PRODUCT PORTFOLIO OF
RELIANCE MONEY

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PRODUCT PORTFOLIO OF RELIANCE MONEY

Initial Public Offering – (IPO)

When an unlisted company makes either a fresh issue of securities

(Through primary markets) or an offer for sale of its existing securities
or both for the first time to the public then that is known as an IPO. The
first sale of stock by a private company to the public. IPO’s are often
issued by smaller, younger companies seeking capital to expand, but can
also be done by large privately-owned companies looking to become
publicly traded. In an IPO, the issuer obtains the assistance of an
underwriting firm, which helps it determine what type of security to
issue (common or preferred), best offering price and time to bring it to
market. Also referred to as a “public offering”.

Derivatives

In finance, a security whose price is dependent upon or derived

from one or more underlies assets. The derivative itself is merely a
contract between two or more parties. Its value is determined by
fluctuations in the underlying asset. The most common underlying assets
include stocks, bonds, commodities, currencies, interest rates and market
indexes. Most derivatives are characterized by high leverage. Futures
contracts, forward contracts, options and swaps are the most common
types of derivatives. Because derivatives are just contracts, just about
anything can be used as an underlying asset.

Derivatives are generally used to hedge risk, but can also be used
for speculative purposes. To hedge this risk, the investor could purchase
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currency futures to lock in a specified exchange rate for the future stock
sale.

Derivatives are divided into basically two parts

 Futures

 Options

(a) Futures: A financial contract obligating the buyer to

purchase an asset (or the seller to sell an asset), such as
a physical commodity or a financial instrument, at a
predetermined future date and price. Futures contracts detail
the quality and quantity of the underlying asset; they are
standardized to facilitate trading on a futures exchange.

(b) Options: A financial derivative which represents a contract

sold by one party (option writer) to another party (option
holder). The contract offers the buyer the right, but not the
obligation, to buy (call) or sell (put) a security or other
financial asset at an agreedupon price (the strike price)
during a certain period of time or on a specific date (exercise
date).

Options are consist of two things

i. Call Option

ii. Put Option

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 (a) Call: It is the period of time between the opening and closing
of some future markets wherein the prices are established
through an auction process. Call is an option contract giving
the owner the right (but not the obligation) to buy a specified
amount of an underlying security at a specified price within a
specified time.
(b) Put: Put is an option contract giving the owner the right, but
not the obligation, to sell a specified amount of an underlying
asset at a set price within a specified time. The buyer of a put
option estimates that the underlying asset will drop below the
exercise price before the expiration date.

Insurance
There are good times and bad times during every stage of our lives, and
being financially prepared to face all kinds of situations makes the
journey of life a lot easier and certainly more. The Financial Product
that helps in this is Insurance. Insurance is a contract (policy) in which
an individual or entity receives financial protection or
reimbursement against losses from an insurance company. The
company pools clients’ risks to make payments more affordable for the
insured.
Insurance is of two types:
 Life Insurance
 General Insurance
(a) Life Insurance
This is the protection against the loss of income that would result if
the insured passed away. The named beneficiary receives the
proceeds and is thereby safeguarded from the financial impact of the
death of the insured. The goal of life insurance is to provide a

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 measure of financial security for your family after you die. Life
insurance products offer comprehensive financial. Solutions which
besides offering financial security also provide opportunity for
saving, investment & tax planning.

(b) General Insurance

General Insurance is a form of risk management, primarily used to
hedge against the risk of a contingent loss of many articles and nominal
things. This is a single policy that may cover risks in one or more of the
categories set forth below. For example, auto insurance would typically
cover both property risk (covering the risk of theft or damage to the car)
and liability risk (covering legal claims from causing an accident).G.I.
may be done for follows:

 Automobile Insurance
 Aviation Insurance
 Equipment Breakdown insurance
 Business insurance
 Crop Insurance
 Crime Insurance Credit Insurance etc.

Products Offered by Reliance General Insurance:

 Individual Mediclaim

 Group Mediclaim

Equity

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Equity is Stock or any other security representing an ownership
interest. Equity is a term whose meaning depends very much on the
context. In general, you can think of equity as ownership in any asset
after all debts associated with that asset are paid off. An Investor can
invest his money in Equity in two ways i.e. Online or Offline and for
both, he needs a D-Mat A/C.

Mutual Fund

An investment vehicle which is comprised of a pool of funds collected

from many investors for the purpose of investing in securities such as
stocks, bonds, money market securities and similar assets. Mutual funds
are operated by money mangers, who invest the fund’s capital and
attempt to produce capital gains and income for the fund’s investors. A
mutual fund’s portfolio is structured and maintained to match the
investment objectives stated in its prospectus.

Commodities
A commodity is something that is relatively easily traded, that can be
physically delivered, and that can be stored for a reasonable period of
time. It is a characteristic of commodities that prices are determined on
the basis of an active market, rather than by the supplier (or other seller)
on a “cost-plus” basis. Examples of commodities include not only
minerals and agricultural products such as iron ore, crude oil, ethanol,
sugar, coffee, aluminum, rice, wheat, gold, diamonds, or silver, but also
so-called “commoditized” products such as personal computers. In the
original and simplified sense, commodities were things of value, of
uniform quality, that were produced in large quantities by many different
producers; the items from each different producer are considered
equivalent. It is the contract and this underlying standard that define the
commodity, not any quality inherent in the product.

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Commodities exchanges include:
 Chicago Board of Trade
 London Metal Exchange
 New York Mercantile Exchange.
 Multi Commodity Exchange
Offshore Investment
Offshore investment is the keeping of money in a jurisdiction other
than one’s country of residence. Offshore jurisdictions are a
commonly accepted solution to reducing excessive tax burdens levied
in most countries to both large and small scale investors alike. Selected
offshore domiciles are superficially viewed by some as havens used by
to conceal or protect illegally acquired money from law enforcement in
the investor’s country. Although this may be the case, legitimate
investors also take advantage of higher rates of return or lower rates of
tax on that return offered by operating via such domiciles. The
advantage to this is that such operations are both legal and less costly
than the solutions offered in the investor’s country - or “onshore”.
Locations favored by investors for low rates of tax are known as
offshore financial centers.

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SHARE MARKET

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Overview
Share Market Overview would give an overall idea about the share
market, its participants, types; etc. Share market is the market for
securities where organized issuance and trading of shares takes place. It
plays an important role in canalizing capital from the investors to the
business houses which consequently leads to the availability of funds for
business expansion. Shares are certificates which represent ownership
rights of the holder in a company.
Share Market can be divided into two parts
(a) Primary Market: It is the market where new issues of
securities are offered to the investors.
(b) Secondary Market: An investor of a secondary market buys
a security from another participant of the same and not from
any issuing corporation (as in case of Primary Market).
Stocks are of two types
(a) Common Stock: It gives an ownership right to the holders of
the stock. The holders are entitled to receive dividends
whenever the company announces.
(b) Preferred Stock: These stocks also give ownership right to its
holders. Its holders enjoy the privilege of receiving dividends
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 from the company in preference to any other common share
holders.
Trading: Share market is the market for securities where organized
issuance and trading of shares takes place. Shares are certificates which
represent ownership rights of the holder in a company. It plays an
important role in channelizing capital from the investors to the
business houses which consequently lead to the availability of
funds for business expansion.

Shares in the Share Market are traded through

Stock Exchange: These are organized market places where stocks,
bonds are other equivalents are traded between the buyers and sellers
where exchange acts as counterparty to both the participants in case of
any default.
Over-the -Counter (OTC): These are not centralized exchanges
and the trade takes place through a network of dealers.

There are mainly two types of trading

1. Intra day trading: In this type of trading an investor buy and sell
stocks during the same day. Intra day Traders are of two types:-
 .Scalp Traders: Investors who perform many trades per day for
scalping out small profits out of the bid-ask spread, from each trade
are known as scalp traders.

 Momentum Traders: Investors who pounce on those stocks

which move significantly in one direction and book desired
profit are called momentum traders. They do this within a day.

2. Delivery trading: In this type of trading an investor buys

the share for holding purposes. Delivery Traders are:-

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  Technical Traders: They believe that buying/selling signals are
present within the graphs and charts of the stock.

 Fundamental Traders: They perform trade on the basis of study of

fact-sheets of the company like historical profit graph, balance sheet,
anticipated earning reports, stock splits, mergers and acquisitions, etc.

 Swing Traders: They are basically fundamental traders who take

delivery of trades for a span of short period generally more than one
day.

Share Broking Company offers two types of share trading

facilities
1. Offline Share Trading: In this form of trading the customer
has to place order to the dealer of the stock broking firm either
in person or over phone. Offline trading is the main form of
investing the money in securities. Offline trading offers many
benefits as well.
 The one benefit that an investor appreciates the most is that they are not
alone when making investment decisions.

 There are experienced and professional brokerage companies that handle

their investments for them.

 Investors are not faced with the challenge of making these vital investment
decisions; especially, if they do not have the experience necessary to make
the appropriate investments.

 Also, there is someone there to answer any questions that may cause
concerns.

2. Online Share Trading: The client could place his order on his
own 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

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 security markets that were, at one point, only reserved by 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 wonderful
reasons to invest online rather than offline trading.
 Instant online access: - You can gain instant access to your account, the
value of your portfolio updates immediately before your eyes.
 Enter online trades at 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
especially fits for investors with busy schedules.

 With online trading you are in charge: - You are in control of your
investments. No sales pitches and no hassle. You decide where to invest
your money.

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 which will meet our needs and requirements .Instead of going with
a company based on their reputation we should see what they can offer
us because our needs as a trader will be radically different from someone
traders who have different levels of experience and who have different
proclivities toward risk and security. Its not that we always want to look
towards the most economical rate of trading but rather work with a
reputed organization like “RELIANCE MONEY”.

Depository

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A depository is an organisation which holds securities of investors in
electronic form at the request of the investors through a registered
Depository Participant. It also provides services related to transactions
in securities.
In the Depository System, the securities of a shareholder are held in the
electronic form by conversion of physical securities to electronic
form through a process called 'dematerialization' (demat) of share
certificates and facilitates transactions electronically without involving
any share certificate or transfer deed.
Depository system is playing a significant role in stock markets around
the world and hence has become popular and prevalent in many
advanced countries. In India the National Securities Depository Ltd.
(NSDL), promoted by Industrial Development Bank of India, Unit Trust
of India, and National Stock Exchange is the first depository. A
second Depository by name Central Depository Services (India) Ltd,
promoted by The Stock Exchange, Mumbai and Bank of India has
been registered recently and will commence its operations shortly.
Investors have choice of two depositories now
 National Securities Depository Limited (NSDL) and
 Central Depository Services (I) Limited (CDSL)
Constituents of Depository system
 Depository
 Depository Participants (DPs)
 Share Registrar/Issuers
 Investor
 Clearing Corporation/Member

ROLE OF DEPOSITORY
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The Depository performs its functions through a network of Depository
Participants (DPs) who interact with the Clearing Members and Investor.
The Depository carries out following functions through its participants:-
 Enabling the surrender and withdrawal of securities through the process of
demat and remat to and from the depository system,
 Maintaining investors' holdings in the electronic form through computers,
 Effecting settlement of securities traded on the stock exchanges.
 Carrying out settlement of "off market trades" (i.e. trades not done on the
stock exchanges)
 Advising periodically to the Share Registrar / Issuer about the beneficial
owners of the securities.
DEPOSITORY PARTICIPANTS
CDSL/NSDL's demat services are extended through its agents called
Depository Participants (DP). The DP is the link between the investor
and CDSL/NSDL. An investor who opens a demat account with a DP
can utilize the services offered by CDSL/NSDL. While the DP processes
the instructions of the investor, the account and records thereof is
maintained with CDSL/NSDL. A DP is thus a "service centre" for the
investor.

ROLE OF DEPOSITORY PARTICIPANTS

Similar to brokers, who act on behalf of a client in the stock
market, a Depository Participant is also a representative in the
depository system. Financial Institutions / Banks / Custodian / Stock
Brokers etc. can become DPs provided they meet the necessary
requirements and guidelines prescribed by SEBI. DP serves as a
link between the investor and the Company through NSDL for
dematerialization of shares and other electronic transactions. DP
provides various services with regard to your holdings such as….
 Maintaining the securities account balances
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  Enabling surrender (dematerialization) and withdrawal
(dematerializations) of securities to and from the depository.

 Delivering and receiving shares.

 Keeping updated with regard to status of holdings periodically.

Depository Participant provides the following services

Account Opening: To utilize the services offered by a depository, any person
having investment in any security or intending to invest in securities needs to have
a demat account with a CDSLDP. This holder of such demat account is called as
"Beneficial Owner (BO)". A BO can maintain a demat account with zero balance
in such account. A BO can open more than one account with the same or multiple
DPs, in the same name/s and order, if he/shedesires so. The investor can approach
any DP/s of his/her choice to open a demat account.

Dematerialization: Dematerialization is a process by which physical certificates

(of shares / debentures / other securities) are converted into electronic balances. A
BO has to submit the request for dematerialization by submitting the demat request
form (DRF) duly completed along with the concerned physical certificates, to
his/her DP.

Processing Delivery & Receipt Instructions

To settle trades done on a stock exchange (on-market trades) and trades,
which are directly settled between two BOs (off-market trades), BOs
submit duly completed delivery instructions in the prescribed form to
DP. For receipt of securities into his/her account, a BO can give one
time "standing instruction" to DP. Once such a standing instruction is

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given to the DP, there is no need to submit separate instructions for
receipt every time the investor buys securities.
 Account Statement: Generally a DP sends to the BO, a statement of his
account, monthly, if there is any transaction in the account or every quarter
if the account is not operated during that period.

 Dematerialization: Dematerialization is the process by which the electronic

balances held in the demat account can be converted back into physical
certificates

 Pledging: If the BO decides to pledge any securities in his BO account, he

can avail of the same by submitting the pledge creation form duly
completed, to his DP.

 Nomination: BO accounts also have a facility for nomination in favor of

any person.
 Transmission of securities: CDSL offers a facility for transmission of
balances held in BO account/s (to other BO Account/s) if so required due to
death, lunacy, bankruptcy, insolvency or required due tooperation of any
law.

 Change in Address: A BO who wishes to register his change in address

submits his/her request in writing to his/her DP. The changes entered by the
DP in the CDSL system will be automatically downloaded to all the
companies in which the BO is holding securities. This facility offered by
CDSL saves money, time and effort for the BO.

 Bank Account Details: SEBI has made it mandatory for companies to print
details of bank account of the BO on dividend/interest warrants etc. to
prevent possibilities of misuse of the warrants. All BOs should submit a
request in writing to the DP if they wish to record / change their bank
account details.
Every investor who wants to hold shares in Demat form must open account with a
DP of his/her choice. The DP provides all the services relating to transmission of
shares and for this service DP levy some charges which is to be paid by the
account holder, and charges for annual maintenance which is to be paid by account
holder, in turn the DP provide clients with passbook and delivery instruction slips
to operate from his Demat a/c .

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D-MAT Account Opening
A demat account are opened on the same lines as that of a Bank
Account. Prescribed Account opening forms are available with the DP,
needs to be filled in. Standard Agreements are to be signed by the Client
and the DP, which details the rights and obligations of both parties.
Along with the form the client, requires to attach Photographs of
Account holder, attested copies of proof of residence and proof of
identity needs to be submitted along with the account opening form.
In case of corporate clients, additional attachments required are - true
copy of the resolution for Demat a/c opening along with signatories to
operate the account and true copy of the Memorandum and Articles of
Association is to be attached
Reliance Money is a Participant of Central Depository Services
Limited (CDSL).
CDSL was promoted by Bombay Stock Exchange Limited (BSE) jointly
with leading banks such as State Bank of India, Bank of India, Bank of
Baroda, HDFC Bank, Standard Chartered Bank, and Union Bank of
India and Centurion Bank. CDSL was set up with the objective of
providing convenient, dependable and secure depository services at
affordable cost to all market participants. D-Mat account opening
process of Reliance Money is as follows….

D-Mat A/C Provided By Reliance Money

Reliance Money provide its customers with the D-Mat A/C, through
which they can invest their money in any Financial Instrument like
Equity, Derivatives, IPOs, Life Insurance , General Insurance etc.
Reliance Money handles all the key financial transactions through
this Single Window. D-Mat A/C is an account in which securities are
kept in Electronic form.

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Scheme:
1. Cost of Having D-Mat A/C:
 Opening Charges: With reliance money the A/C opening charges are
Rs.750. These charges are for life time.
 Annual Maintenance Charges: With Reliance Money the A.M.C. is
just Rs.200 that is lowest in The Share Broking Industry.
 No brokerage and Service Charge: Reliance Money is the first and
foremost company that charges Brokerage and Service charge 0.01 paisa on
the Sale and Purchase of Security, otherwise the Industry wide
Brokerage rate lies between 0.10 to 0.75 paisa on Delivery based Trading
and 0.01 to 0.50 paisa on Intraday Trading.

2. Flat Fee Structure:

 The current leaders in the retail broking segment like ICICI Direct, India
Info line and India bulls offer a ‘pay per use’ model where the customer
pays a percentage of the amount transacted by him. Whereas Reliance
Money, aims to tap investors in the smaller towns and cities through a flat
fee structure instead of percentage or per transaction brokerage system.

3. Tier Service:
 Reliance Money provides its customers with a three tier service i.e.
interlinked D-Mat A/C, Trading A/C and Savings Bank A/C. This makes the
customer free to trade online and makes the trading more hassle free.

 Reliance Money has its tie up with three banks i.e. HDFC, IDBI and UTI
Bank and customer need to have his Savings Bank Account with any of
these Banks for enjoying this three tier service.

4. Convenient: Customer can access the services of Reliance

Money through:
 The Internet-mail at www.reliancemoney.com

 The Transaction Kiosk

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 The Phone (Call & Transact)-call on 3988 6000 or SMS ‘Money’ to 6636.

 The All India Network of Associates on an assisted trade (through the Call
Centre or the network of associates) a charge of Rs.12 per executed trade
will be applicable.

5. Safe: For Security Purpose, Reliance Money provides:

 User ID

 Password

 Security Token Key that has a unique, six digit no. This no. changes every
32 seconds and works as a dynamic password for keeping the account extra
safe.

6. Single Window access: Through Reliance Money’s associates

customer can transact in:
 Equity
 Equity and Commodity Derivatives

 Mutual Funds
 IPO’s
 Life Insurance
 General Insurance
 Money Transfer
 Money Changing
 Credit Cards amongst others.

7. Free Tips: Customer gets free tips, current market information

and reports on their:
 Mobiles

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  E-Mail IDs

8. Value Added Services: Customers can get some value added

services on www.reliancemoney.com
 Reliable Research, including views of external experts with an enviable
track record.

 Live News Updates from Reuters and Dow Jones.

 CEOs/Expert views on the Economy and Financial Market.

 Tools that help customers to plan their investments, tax, retirement etc. in
the personal finance section.

 Risk Analyzer for analysis of Risk Profile.

 Asset Allocations to build an appropriate investment portfolio.

Documents for D-Mat A/C

For opening a D-Mat A/C with Reliance Money, following documents
are needed:

 Photocopy of PAN Card (both-front and back side)

 An address proof: (any one of them)

 Passport

 Voter ID Card

 Driving License

 Bank Statement

 Rent Agreement

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  Telephone Bill (MTNL or BSNL)

 Coloured Passport size photographs of the First Holder of Account, 1

Photograph of Second Holder (if any) and 1 photograph of Third Holder (if
any).

 A Cheque (S/B) worth Rs.750 + (500, 1350, 2500).

Operations
The various operations provided by Reliance money is as follows……

 Internet trading

 Client Account Opening

 Clearing And Settlement

 Capital gain on securities transaction

 Levities on securities transaction

 Trading policy for employees

Internet Trading
 Client order is routed to exchange through broker’s trading system.

 Client has real time market information.

 Client can monitor his position and can see profit and loss on line.

 Client has to have internet access to trade through our internet trading
platform.

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  Client can maintain secrecy of his transactions and portfolio.

 Client can access the trading system and put trade anywhere and anytime.

 Funds and securities are transferred online from client account to broker
account and vice versa hence avoid manual work of cheque and DP slip.

Client Account Opening

 Prospective client has to have three accounto Trading account

 DP account and

 Bank account with payment gateway bank

 DP account has to be with Reliance Capital

 Reliance Money has tie up with 3 banks : HDFC,UTI and IDBI

 Separate KYC for Equity,Fx and commodities

 Receipt of KYC by branch from DSA/Sales Executives

Who Can Open a Trading Account?

 Individual

 HUF

 NRI

 Corporate

 Proprietorship-Only Trading Account

Clearing and Settlement

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  Clearing: A process to find out how much and who has brought or sold
securities through our broking platform
 How much money is to be paid or is to be received to/from clients and
exchange
 How much securities is to be delivered or to be received to/from clients and
exchange
 Settlement is pay of funds and securities from the clients and then to the
exchange
 Pay out of funds and securities from the exchange and to clients.
 Checking of KYC
 Cheque deposit in our designed bank
 Dispatch of KYC to CBO on daily basis through DTDC courier only
 CBO process the client information, generate customer ID, trading account,
DP account and password.

Capital Gain

 Capital gain/loss is the difference between sale proceeds and cost

of acquisition of asset.

 On sale of securities investor has to pay either short term or long

term capital gain tax if he earns profit.

 Long term capital loss can be set off against long term capital
gain only

Short Term Capital Gain

 Short term capital Gain. When securities are hold for less than
one year and sold
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  Tax is paid @10% on the short term capital gain from sale of
securities.

 Securities should be old through recognized stock exchange

and subject to securities transaction tax

 Short term capital loss can be sent off against short term capital
gain

Long Term Capital Gain

 When securities are sold after holding for more than one year

 If shares are sold through recognized SE and STT is payable

then no tax is payable on long term capital gain otherwise IT @
20% has to be paid.

Levies on securities transaction

 Service tax: 12% of brokerage

 Education cess:2% of service tax

 STT : 125% of delivery value

 0.025% of trading one side (sale)
 0.017% of trade for F& O (sale)

 Stamp duty : 0.01% on delivery transaction

 0.002% on trading F & O

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Employees Trade Policy
 Objective: Inside information , diversion

 Applicability: Employee and dependent.

 Exempted transaction: IPO, MF, Bonds, and PF.

 Approval: HOD, Compliance officer.

 Securities holding period: 3 days and 30 days.

 Restricted transaction: Group Company.

 Disclosure: Joining time and every year 3 march.

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ACCOUNT OPENING PROCESS

ACCOUNT OPENING PROCESS

The account opening process followed at Reliance Money is as follow

 Accept application forms

 Process-
o Document checking
o Verification
o Rectification of errors
 Processing completed
 Sent to the processing house located at Mumbai

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  Account opening at CBO(Central Back Office)

After the forms being sent to Mumbai the following process is

adopted
a) Application inward:
There are two persons who collect these forms and then forward
these forms for their entries.
b) Entry:
There are persons who maintain an excel sheet for the entries of the
forms in the format which includes the various details as- application
number, branches ,region ,zone, client name ,cheque number etc which
is then forwarded to all branches .
c) Scrutiny:
After doing entries in the excel sheet the forms are being sent for
scrutiny. There is a team of 10 -15 people who are responsible for
scrutinization. The scrutinization includes-
 Whether the forms are properly filled or not.
 Is there any signature missing.
 Whether there is a cross signature or not in the corrections etc.
 The documentation is completed
 Then the franking and stamping is done by fixing the different
stamps of the DP.
Once the team finds the process completed then the form is sent for
scanning otherwise the forms are sent back to the branches for
rectification.

d) Scanning:
In this process the first three pages of the summary sheet viz (Form
no 1) are scanned for presenting the pages in DMS.
e) DMS:
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 After the form is scanned then they are presented in DMS
(document management system) which is a software used to maintain
the record of the client which includes the address, phone number, name
of client which is used for further processing..

f) Checker: (process for checking the details):

There are 3 to 4 persons who again check the entries done in DMS and if
any rejection is found then again it is send back to the DMS and if no
rejections found then it is send for further processing that is pan
validation.

g) PAN Validation:
In this step there are two persons who check the PAN card of clients
from the Income Tax site for its validation. This is the step where the
form can again be rejected and sent back to branches.

h) Authorization:
In this process, there are 3 to 4 person who send request to CDSL for
authorization in which a report is generated in every 45 minutes from
CDSL that the form is approved and account is opened. And in this
report CDSL gives the client code for every client. Once the code is
generated the details are sent for preparation of Client master report
which is issued to every client.

This client master contains all detail of client including his bank details,
nominee detail, BO Id, client ID etc.

Then the client master report is sent to the department where the
security key are mapped .This is a special feature of reliance Money DP
account which provide security to the client and the password are
prepared for cases.

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This key is given with the kit known as welcome kit to client which
includes client master, DRF (Demat request form), DIS (delivery
instruction slips).

Once the kit is fully equipped then it is dispatched to the client through
courier. The password of the client is dispatched on the other day of
dispatch of kit. With the dispatch of kit the account opening process is
completed.

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 COMPARITIVE STUDY

COMPARITIVE STUDY
Currently the main Players in Retail Brokerage Business are ICICI
Direct, Share khan, 5paisa.com, HDFC Securities, India Bulls, and
Motilal Oswal. Here is the Brief study and Comparative analysis of
these companies with Reliance Money.
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 ICICI Direct
Brokerage and fees
 Account opening fees : Rs 750/- (One time non-
refundable)
 Brokerage : Brokerage of ICICIDirect varies on volume of
trade and inclusive of demat transaction charges, service
taxes and courier charges for contract notes. It ranges from
0.1% to 0.15% for margin trades and 0.4% to 0.85% on
delivery based trades.
Advantages of ICICI Direct
 3-in-1 account integrates your banking, broking and
demats accounts. All accounts are from ICICI and very
well integrated.
 Investment online in IPOs, Mutual Funds, GOI Bonds, and
Postal Savings Schemes all from one website. General
Insurance is also available from ICICI Lombard.
 Trading is available in both BSE and NSE.
Disadvantages of ICICI Direct

 Getting access to ICICI Direct.com website during market

session can be frustrating.

 ICICI Direct brokerage is high and not negotiable.

Share Khan
Share khan is online stock trading company of SSKI Group, provider of
India-based investment banking and corporate finance service. Share

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Khan is one of the largest stock broking houses in the country. Share
khan’s equity related services include trade execution on BSE, NSE,
Derivatives, commodities, depository services, online trading and
investment advice. Trading is available in BSE and NSE. Along with
Sharekhan.com website, ShareKhan has around 250 offices around the
country.
Allow investor to buy and sell stocks online along with the following
features like:
 multiple watch lists
 Integrated Banking,
 demat and digital contracts,
 Real-time portfolio tracking with price alerts and Instant credit &
transfer.
 Online trading account for investing in Equities and Derivatives
 Free trading through Phone (Dial-n-Trade)
 Two dedicated numbers for placing your orders with your cell
phone or landline.
 Automatic funds transfer with phone banking (for Citibank and
HDFC bank customers)
 Simple and Secure Interactive Voice Response based system for
authentication
 Get the trusted, professional advice of our telebrokers
 Integration of: Online trading + Bank + Demat account
 Instant cash transfer facility against purchase & sale of shares
 IPO investments

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  Instant order and trade confirmations by e-mail
 Single screen interface for cash and derivatives

India Bulls
India bulls is India’s leading Financial Services and Real Estate
Company having presence over 414 locations in more than 124 cities.
India bulls Financial Services Ltd is listed on the National Stock
Exchange, Bombay Stock Exchange, Luxembourg Stock Exchange and
London Stock Exchange.
Document required opening Equity Trading Account with India bulls
 One passport size photograph.
 Proof of bank account
 Copy of PAN card.
 Identity proof - copy of passport or PAN card or voter ID or
driving license or ration card.
 Address proof - copy of driving license or passport or ration card
or voter card or telephone bill or electricity bill or bank statement.
Account opening fees:
 Rs 1200/- (One time non-refundable) as below:
 250/- Equity Trading Account opening charge 200/-
 Demat Account opening charge 750/- Software charges

Advantages of India bulls Equity Trading Account

 Brokerage is less compare to other online trading companies.

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 Provide trading terminal ‘powerbulls’, a java based software. It’s
very fast in terms of speed and execution. Power Indiabulls trading
terminal is the most advanced new generation trading platform
with great speed.
 Power Indiabulls is extremely reach in features including
 Live Streaming Quotes
 Fast Order Entry and execution
 Tic by Tic Live Charts
 Technical Analysis
 Live News and Alerts,
 Extensive Reports for Real-time Accounting.

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 FRANCHISE MODEL

FRANCHISE MODEL

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Reliance money gives equal opportunities to self employed people by
letting them earn through the fantastic DSA model of it. This model
provides hefty commission on all the products of reliance money and
enhances the sales. For a certain number of franchisees there is a
manager who is the person responsible to excel the satisfaction of the
franchise holder. A DSA can deal into all the products of reliance
capital, i.e.:-

 DEMAT Account.
 Life Insurance.
 General Insurance.
 Mutual Funds.
 Credit Cards.
 Portfolio Management Services etc.

Else of these products there are many other promotional products which
come in different variables of time giving good earning opportunities to
the DSAs.

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