Report On Reliance Money

Semester VI
Academic Year 2023-24
A Project Submitted to
University of Mumbai for Partial Completion of the Degree of B.Com(A&F)
Under the Faculty of Commerce
By
Prathmesh Vishwanath Wadekar

Roll No. 233551

Under the Guidance of
Asst. Prof.Manjula choudhary

Saket College of Arts, Science and Commerce, Kalyan East

UNIVERSITY OF MUMBAI

Report On Reliance Money

Semester VI
Academic Year 2023-24
A Project Submitted to
University of Mumbai for Partial Completion of the Degree of B.Com(B&I)
Under the Faculty of Commerce
By
Prathmesh Vishwanath Wadekar

Roll No. 233551

Under the Guidance of
Asst. Prof.Manjula choudhary

1
Saket College of Arts, Science and Commerce, Kalyan East
UNIVERSITY OF MUMBAI

SAKET GYANPEETH’S
SAKET COLLEGE OF ARTS, SCIENCE & COMMERCE
(Affiliated to University of Mumbai)
NAAC Accredired B Grade

Department of B.Com(A&F)

CERTIFICATE

2
This is to Certify that
Prathmesh Vishwanath Wadekar

Has Completed the Project Work Entitled

Report On Reliance Money

Submitted the same in the Partial Completion of B.Com(A&F) Degree under

our Supervision in Saket College of Arts, Science and Commerce in the
Academic Year 2023-24.

Head of the Department

Internal Examiner External Examiner Principal

On separate page

Name and address of the college

Certificate

This is to certify that Mr ___Prathmesh Vishwanath Wadekar_has worked and duly

completed her/his Project Work for degree of B.Com(A&F) under the Faculty of Commerce
and her/his project is entitled, “Report On Reliance Money” under my supervision.

I further certify that the entire work has been done by the learner under my guidance and
that no part of it has been submitted previously for any Degree or Diploma of any University.
It is her/ his own work and facts reported by her/his personal findings and investigations.

Asst. Prof .Manjula

Choudhary _________

Name and Signature of

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 Guiding Teacher

Date of submission:15/03/2024

Declaration

I the undersigned Mr. Prathmesh Vishwanath Wadekar here by, declare that
the work embodied in this project work titled “Report On Reliance
Money”,forms my own contribution to the research work carried out under the
guidance of Asst . Prof . Manjula Choudary is a result of my own research
work and has not been previously submitted to any other University for any
other Degree/ Diploma to this or any other University.

Wherever reference has been made to previous works of others, it has been
clearly indicated as such and included in the bibliography.

I, here by further declare that all information of this document has been
obtained and presented in accordance with academic rules and ethical conduct.

Name and Signature of the learner

4
Certified by
Asst. Prof. __Manjula Choudhary_____
Name and signature of the Guiding Teacher

Acknowledgment

To list who all have helped me is difficult because they are so numerous and
the depth is so enormous.

I would like to acknowledge the following as being idealistic channels and

fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me

chance to
do this project.

I would like to thank my Principal Dr . Vasant Barhate for providing the

necessary facilities required for completion of this project.

I take this opportunity to thank our Coordinator Asst. Prof. Pooja Sajin, for
her moral support and guidance.

I would also like to express my sincere gratitude towards my project guide

Manjula Choudhary whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various

reference
books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly
helped me in the completion of the project especially my Parents and Peers
who supported me throughout my project.

5
6
ACKNOWLEDGEMENT

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I am indeed very happy to acknowledge the numerous personalities involved in
lending their help to make my summer project a successful one.

Firstly, I would like to thank Reliance Capital Ltd. for providing me the opportunity
to work on this project in their subsidiary Reliance Securities.

I would like to thank my corporate guide Mrs. Manjulla Choudhary and all other
staff of Reliance Seurities for helping me in learning the lessons of professional
management. His able guidance and valuable inputs have helped me a lot in
successfully completing this project.

I would also like to extend a heartfelt thanks to Mrs. Manjulla Choudhary (Zonal
Marketing Head of Reliance Securities) for providing us with all the required
resources and always being very helpful.

I express my sincere gratitude to my institute guide Mrs. Pooja Sajin who took a lot
of personal interest in supervising this project and guiding me. She has been a great
source of inspiration in the task of completion of this project work. Her profound
advice, timely guidance has been of immense value to me.

This acknowledgement would not be completed without extending my thanks to my

friend, who did their summer internship along with me at Reliance Securities Ltd,
who helped me clear any doubts that arose during my internship and for extending
their support to me during my period of internship.

EXECUTIVE SUMMARY
This project pertains broadly to the financial service sector.

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 In today's corporate and competitive world financial sector has the maximum
growth and potential as compared to other sectors. Financial products have the
maximum growth rate of 8.5% per year.

In last few years,

✔ India has emerged as the one of the most rapidly growing economies in the
world.
✔ India has been categorized with nations like Brazil, Russia and China (BRIC
Nations) who are going to be the prime drivers of world economy in next few
decades.
✔ Since the time, India first opened its gates to foreign investment (FDI & FII),
there has been a complete turnaround. Now the traditional Hindu rate of growth
is a thing of past and clocking 6.8% GDP growth rate of the current financial
year.
✔ India along with other Asian powerhouse China makes for the fastest growing
nations in the entire world.
✔ Even in the case of ongoing global recession, India has managed to perform far
better than other nations.' Right from banking system to financial regularities, the
country has thrived on discipline and out-performance.
✔ The booming Indian economy resulted in widespread growth and arrival of new
industries.

All these resulted in a most sparkling phenomenon in the form of financial market
renovation of India. Financial services in India has' taken a giant leap from the days
of standing in banks queue for several hours for opening a saving account or trying
to get some fixed deposits (FD) done. The financial services have

9
increased manifold and now people have the choice to choose the one that most
suitably fits the bill. There are several services like broking firms, investment
services, financial consulting, evergreen national banks, numerous private banks,
mutual funds, car and home loans, equity market and other banking services.
Services are many and offered by blue chip names of the industry.
Most of the companies in financial segment offer consultancy services and all
the services of wide financial gamut.

CONTENTS

S.no Paticulars Page no.

10
1. Introduction 8
2. Company Profile 23
3. Swot Analysis 49
4. Competitors Details 51
5. Research Methodology 56
6. Findings 62
7. Suggestions and Recommendations 64
8. Conclusion 67
9. Annexure 69

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INTRODUCTION

SECURITIES MARKET

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SECURITIES MARKET PAST
Pre-demat era (under paper based share certificate environment)The investors can be broadly
classified into two groups on the basis of process of acquiring equity shares, viz. investors who
get allotment of shares in the primary market and investors who purchase shares from the
recognized stock exchanges(secondary market). Some of the risks involved in dealing with
physical shares through public issue allotment and secondary market transactions can be
identified as follows: - Share certificates are sometimes lost in transit. In that scenario, the
investors have to give an indemnity bond to Company, which involves a cost to the investor,
besides depriving him of the opportunity to sell the shares at the opportune time. - Time taken
to receive the shares is also quite long compared to the present dematerialized environment.

Secondary market operations were fraught with bad paper due to signature differences, forged
and fake certificates stolen certificates and delayed transfer resulting in low confidence in the
market place. In public issues, Companies were / are incurring several costs in distributing the
share certificates to the investors. They are as follows: - Printing of share certificates (@ about
Rs 1.00 per certificate), RTA handling charges (@ about Rs 5.50 per folio), actual cost of
dispatching by registered post and other expenses. In case of investors purchasing the shares
from the secondary market, there are certain costs incurred by the companies. After the shares
are transferred into the investor’s name, the expenses on corporate benefits distribution will
be same for all shareholders owning the shares in physical form. Structure and Collection

13
method of charges under paper based share safe-keeping and transfer mechanism.

Under this method companies used to incur all expenses pertinent to share transfer in the name
of the buyer. These could be classified into two broad categories on the basis their nature:

(a) Variable expenses (I)Share Transfer(ii)Maintenance of folio records. (iii)Custody of

physical shares, etc.,(iv)Dividend and other corporate actions
(b) Event Specific Expenses (i) Issue of duplicate certificates (ii) Adhoc reports, etc.
Individual investor/Institutional investor was required to pay 0.5 percent of purchase
value of share as stamp duty under physical environment which has been totally
removed under demat conditions. Further, issues pertaining to bad paper like,
signature difference, fake or forged certificate, etc. besides delay in transfer, are
eliminated and thus investor is a direct beneficiary. The price risk faced by the investor
has also been eliminated. As per some unofficial estimates, the cost related to the bad
paper was to the extent of about 20 percent of the market
value of shares. Currently this figure is estimated to be almost nil. Post-trade
activities: The post trade activities of the stock exchanges are handled by their respective
Clearing house/corporation. In the physical environment, the Clearinghouse/corporation
incurred several expenses on various heads as follows: - Physical space required collecting
share certificates-Sorting them with respect to receiving member.

Safekeeping of share certificates delivered at the Clearinghouse/corporation. Insurance costs.

Huge human costs incurred for executing pay-in and pay-out

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activities. Transportation costs incurred in movement of physical share certificates from one
metro to other metro for pay-in and pay-out. On the basis of informal discussion, it can be
stated that there is drastic reduction in cost of pay-in and pay-out facility. A part of it might
have been passed on to brokers/ dealers of the stock exchanges.

Further, as it has been observed in the study of M.T. Raju (2000), the brokerage fell
significantly during this period for high net worth investors. For small investor, the fall in the
brokerage is not proportional even though there is a decline in the brokerage. Early period of
demat the regulator, SEBI, had played a significant role in nurturing the promotion and growth
of dematerialization for the benefit of all investors and for the cause of developing efficient
securities market in India. During the initial period, the depositories used to collect transaction
charges as well as custodial charges on ‘ad valorem’ basis. This is directly related to the value
of securities bought or sold and held in custody. Higher values attracted higher fees and vice-
versa. There was a feeling under this system that the payment by the high net worth investors
and institutions was disproportionate to services received by them. In the demat environment,
to a large extent, services rendered are invariant to value of transaction. In many other markets,
the charges are levied on the basis of number of transactions which is also known as flat fee
structure. In India, depositories subsequently switched over to flat fee structure of charges on
transactions. . However, notwithstanding this, in India the share ownership pattern is quite
different from what it is, in the developed markets, as well as in some of the emerging markets.
Considering the role of small investors in Indian capital market, we need to have a cost
effective system which will address many of the issues concerning small investors. The
dematerialization success

15
story could be partly attributed to individual investor for his full support to the regulatory
direction.

As it was mentioned in the study of M.T. Raju and Prabhakar Patil (2001), Indian stock
markets had taken significantly less time to complete the Herculean task of dematerialization
as compared to some of the developed markets like USA, UK, etc. Depository Participants
Depository participants (DPs) impose various charges on the institutional as well as on
individual clients under various heads for providing services.

The services available in dematerialized environment that are extended to the clients are as
follows: • Dematerialization Rematerialization• Custodial services Debit or Credit facility
Hypothecation Speed-e along with smart card Corporate benefits like bonus, stock split,
dividend payment, etc This is an illustrative list of services available. The system of charging
a fee forth services extended to an investor is in two-layers. The Depository charges the DPs
and DPs in turn collect fee/charges from the investor. Each DP uses different norms to classify
charges depending on the extent of services rendered. NSDL has a provision for collecting a
one-time fee of 0.05 percent of market capitalization of the company, as custody fees for life.
For these companies, no custody charge is supposed to be charged from the investors for life.
The list of55 companies that had paid this one time fee is enclosed in Annexure I. However,
it is not clear whether DPs are passing this benefit to investors or not for these 55
companies.VI. Charges under the present method FFSThe depositories started charging DPs
on FFS basis since May, 2002 and DPs in turn started charging on FFS basis to investors. This
system is tilted in favour of high net worth and institutional investors who trade in large
quantities. The long-term small investor who trade less frequently feel the unwanted burden
of heavy outgo on

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account of FFS.Custody charges are levied on the basis of ISIN numbers, irrespective of the
value of shares in custody. As a result, there is a piquant situation, wherein on one side, the
value of shares may be getting eroded while on the other hand the investors are required to
pay custody charges that some times exceed the value of shares held in custody. This has been
a very sour point. As the value of the holding is small, the charges paid as percentage of value
of their holding work out to be very high.

CURRENT AND FUTURE

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It is needless to say that the financial markets (banks and the securities markets) finance
economic growth. They canalize savings to investments and thereby decouple these two
activities. As a result, savers and investors are not constrained by their individual abilities, but
by the economy’s ability to invest and save respectively, which inevitably enhances savings
and investment in the economy. To the extent the growth of an economy depends on the rate
of savings and investment, financial markets promote economic growth. The banks and
securities markets are two competing mechanisms to channel savings to investment. The
securities markets score over banks in the allocation efficiency, as it allocates savings to those
investments which have potential to yield higher returns. This inevitably leads to higher
returns to savers on their savings and higher productivity on investments to enterprises. Hence
to the extent economic growth depends on the rate of return on investments, securities market
promotes economic growth. With this brief background, I propose to talk first about functions
of the securities market, then its role and importance in the growth of an economy, then how
a liberalized securities market promotes economic growth, then talk about its significance in
the Indian economy and finally, significance of the market in the growth of Indian economy.

FUNCTIONS OF SECURITIES MARKET

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The securities market allows people to do more with their savings than they would otherwise.
It also allows people to do more with their ideas and talents than would otherwise be possible.
The people’s savings are matched with the best ideas and talents in the economy. Stated
formally, the securities market provides a linkage between the savings and the preferred
investment across the entities, time and space. It mobilizes savings and canalizes them through
securities into preferred enterprises. The securities market enables all individuals, irrespective
of their means, to share the increased wealth provided by competitive enterprises. The
securities market allows individuals who can not carry an activity in its entirety within their
resources to invest whatever is individually possible and preferred in that activity carried on
by an enterprise. Conversely, individuals who can not begin an enterprise they like can attract
enough investment form others to make a start and continue to progress and prosper. In either
case, individuals who contribute to the investment share the fruits.

The securities market also provides a market place for purchase and sale of securities and
thereby ensures transferability of securities, which is the basis for the joint stock enterprise
system. The liquidity available to investors does not inconvenience the enterprises that
originally issued the securities to raise funds. The existence of the securities market makes it
possible to satisfy simultaneously the needs of the enterprises for capital and of investors for
liquidity. The liquidity the market confers and the yield promised or anticipated on security
encourages people to make additional savings out of current income. In the absence of the
securities market, the additional savings would have been consumed otherwise. Thus the
provision of securities market results in net savings. The securities market enables a person to
allocate his savings

19
among a number of investments. This helps him to diversify risks among many enterprises,
which increases the likelihood of long term overall gains.

SECURITIES MARKET AND ECONOMIC GROWTH

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 It is strongly believed that a well functioning securities market is conducive to sustained
economic growth. There have a number of studies, starting from World Bank and IMF to various
scholars, which have established robust relationship not only one way, but also the both ways,
between the development in the securities market and the economic growth. An important study
by Ross Levine and Sara Zervos (1996) finds that the stock market development is highly
significant statistically in forecasting future growth of per capita GDP. Their regressions forecast
that if Mexico or Brazil were to obtain stock markets as advanced as Malaysia, then they might
obtain an additional per capita GDP growth per year of 1.6%. This happens, as market gets
disciplined / developed/ efficient, it avoids the allocation of scarce savings to low yielding
enterprises and forces the enterprises to focus on their performance which is being continuously
evaluated through share prices in the market and which faces the threat of takeover. Thus
securities market converts a given stock of invest resources to a larger flow of goods and
services. The securities market fosters economic growth to the extent that it-(a) augments the
quantities of real savings and capital formation from any given level of national income, (b)
increases net capital inflow from abroad, (c) raises the productivity of investment by improving
allocation of invest able funds, and (d) reduces the cost of capital. It is reasonable to expect
savings and capital accumulation and formation to respond favorably to developments in
securities market. The provision of even simple securities decouples individual acts of saving
from those of investment over both time and space and thus allows savings to ocsaving

21
without the need for a concomitant act of investment. If economic units rely entirely on self-
finance, investment is constrained in two ways: by the ability and willingness of any unit to
save, and by its ability and willingness to invest.

The unequal distribution of entrepreneurial talents and risk taking proclivities in any economy
means that at one extreme there are some whose investment plans may be frustrated for want
of enough savings, while at the other end, there are those who do not need to consume all their
incomes but who are too inert to save or too cautious to invest the surplus productively. For
the economy as a whole, productive investment may thus fall short of its potential level. In
these circumstances, the securities market provides a bridge between ultimate savers and
ultimate investors and creates the opportunity to put the savings of the cautious at the disposal
of the enterprising, thus promising to raise the total level of investment and hence of growth.
The indivisibility or lumpiness of many potentially profitable but large investments reinforces
this argument. These are commonly beyond the financing capacity of any single economic
unit but may be supported if the investor can gather and combine the savings of many.
Moreover, the availability of yield bearing securities makes present consumption more
expensive relative to future consumption and, therefore, people might be induced to consume
less today. The composition of savings may also change with fewer saving being held in the
form of idle money or unproductive durable assets, simply because more divisible and liquid
assets are available. The securities market facilitates the internationalization of an economy
by linking it with the rest of the world. This linkage assists through the inflow of capital in the
form of portfolio investment. Moreover, a strong domestic stock market performance forms
the basis for well performing domestic corporate to raise capital in the international market.
This implies that

22
the domestic economy is opened up to international competitive pressures, which help to raise
efficiency. It is also very likely that existence of a domestic securities market will deter capital
outflow by providing attractive investment opportunities within domestic economy. Any
financial development that causes investment alternatives to be compared with one another
produces allocation improvement over a system of segregated investment opportunities.

The benefits of improved investment allocation is such that Mc Kinnon defines economic
development as reduction of the great dispersion in social rate of return to existing and new
investments under domestic entrepreneurial control. Instead of emphasizing scarcity of capital,
he focuses on the extra-ordinary distortions commonly found in the domestic securities
markets of the developing countries. The distortions in the real sectors such as monopoly
power, tariff protection, import quotas, credit rationing and so forth add salt to injury. In the
face of great discrepancies in rate of return, the accumulation of capital does not contribute
much to development. A developed securities market successfully monitors the efficiency with
which the existing capital stock is deployed and thereby significantly increases the average
return. In as much as the securities market enlarges the financial sector, promoting additional
and more sophisticated financing, it increases opportunities for specialization, division of
labour and reductions in costs in financial activities. The securities market and its institutions
help the user in many ways to reduce the cost of capital. They provide a convenient market
place to which investors and issuers of securities go and thereby avoid the need to search a
suitable counterpart. The market provides standardized products and thereby cuts the
information costs associated with individual instruments. The market institutions specialize
and operate on large scale which cuts costs through the

23
use of tested procedures and routines. There are also other developmental benefits associated
with the existence of a securities market. First, the securities market provides a fast-rate
breeding ground for the skills and judgment needed for entrepreneurship, risk bearing,
portfolio selection and management. Second, an active securities market serves as an ‘engine’
of general financial development and may, in particular, accelerate the integration of informal
financial systems with the institutional financial sector.

Securities directly displace traditional assets such as gold and stocks of produce or, indirectly,
may provide portfolio assets for unit trusts, pension funds and similar FIs that raise savings
from the traditional sector. Third, the existence of securities market enhances the scope, and
provides institutional mechanisms, for the operation of monetary and financial policy. While
the above indicate that the securities market promotes economic growth, it is not one way
relation. The economic growth also promotes securities market, which I am not discussing
now. Liberalized Securities Market and Economic Growth Now let me explain how a
liberalized securities market helps promote economic growth. The more liberalized a securities
market is, the better is its impact on economic growth. Interventions in the securities market
were originally designed to help governments expropriate much of the seignior age and control
and direct the flow of funds for favored uses. These helped governments to tap savings on a
low or even no-cost basis. In some economies governments used to allocate funds from the
securities market to competing enterprises and decide the terms of allocation. The result was
channelisation of resources to favored uses rather than sound projects. In such circumstances
accumulation of capital per se meant little, where rate of return on some investments were
negative while extremely remunerative investment opportunities were foregone. This kept the

24
average rate of return from investment lower than it would otherwise have been and, given the
cost of savings, the resulting investment was less than optimum. This led mainstream
development economists to argue that liberalization of securities market is the road to higher
levels of domestic savings/investment and more efficient allocation of capital. The vertical
axis represents cost of capital and rate of return on investment and the horizontal axis
represents the amount of capital raised from the securities market. With intervention, the
demand for investment is represented by DyD, which indicates lower average rate of return
corresponding to sub-optimal resource allocation.

As the level of investment increases to OD, the maximum permitted by the authorities, the
average rate of return decreases as relatively less remunerative investments are approved. SS
represents the supply of capital. This results in an investment of K. If, however, intervention
is withdrawn, rate of return will go up causing a shift in demand for investment schedule to
D1D1, which will be down ward sloping through out. This would result in higher investment
and consequently income which would shift supply schedule of capital to S1S1. The
investment would further increase to K* and rate of return would improve to r*. Rate of return
improves because removal of intervention rations out low yielding investments. As the cost of
capital goes up, the entrepreneurs are likely to switch to less capital-intensive technologies.
Such technologies may not only raise the average productivity of capital, but also represent
appropriate technology provided by relative availability and cost of labour and capital in the
economy. Letting rate of return be determined by the market mechanism would reduce or even
eliminate the costs involved in credit rationing arrangements and thereby enhance the
efficiency of the economy as a whole. High rate of return would stimulate demand for financial
assets and expand

25
financial sector one of the bitter fruits of intervention has been the shrinkage of the securities
market. When subject to effective expropriation through suppressed return on investment,
people naturally seek a proper reward elsewhere, either through capital flight, through a retreat
to under ground or through the hoarding of goods. People keep their savings out of the markets.
The underground sector allocates the resources, but relatively inefficiently. Another major
consequence has been insulation of developing countries from international capital markets.
The domestic market is shielded from competition. Misallocation of resources can result
because of distorting interventions or the presence of market failure either in the goods market
or in the securities market, which are interlinked. Improvement in allocation efficiency,
therefore, requires removal of distortions from both the markets.

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SIGNIFICANCE IN INDIAN ECONOMY

The two major stock exchanges in India are:-

➢ National Stock Exchange (NSE)

➢ Bombay Stock Exchange (BSE).

NATIONAL STOCK EXCHANGE

The National Stock Exchange was incorporated in 1992 by Industrial Development Bank of

India, Industrial Credit and Investment Corporation of India, Industrial Finance Corporation of

India, all Insurance Corporations, selected commercial banks and others.

The National Stock Exchange (NSE) is India's leading stock exchange covering various cities

and towns across the country. NSE was set up by leading institutions to provide a modern, fully

automated screen-based trading system with national reach. The Exchange has brought about

unparalleled transparency, speed & efficiency, safety and market integrity. It has set up facilities

that serve as a model for the securities industry in terms of systems, practices and

procedures.

NSE Nifty

27
S&P CNX Nifty is a well-diversified 50 stock index accounting for 22 sectors of the economy.

It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives

and index funds.

NSE came to be owned and managed by India Index Services and Products Ltd. (IISL), which is

a joint venture between NSE and CRISIL. IISL is India's first specialized company focused upon

the index as a core product. IISL have a consulting and licensing agreement with Standard & Poor's

(S&P), who are world leaders in index services. CNX stands for CRISIL NSE Indices. CNX

ensures common branding of indices, to reflect the identities of both the promoters, i.e. NSE and

CRISIL. Thus, 'C' Stands for CRISIL, 'N' stands for NSE and X stands for Exchange or Index. The

S&P prefix belongs to the US-based Standard & Poor's Financial Information Services.

BOMBAY STOCK EXCHANGE

The Bombay Stock Exchange is one of the oldest stock exchanges in Asia. It was established

as "The Native Share & Stock Brokers Association" in 1875. It is the first stock exchange in

the country to obtain permanent recognition in 1956 from the Government of India under the

Securities Contracts (Regulation) Act, 1956. The Exchange's pivotal and pre-eminent role in the

development of the Indian capital market is widely recognized and its index, SENSEX, is tracked

worldwide.

28
Three main sets of entities depend on securities market. While the corporate and

governments raise resources from the securities market to meet their obligations,

the households invest their savings in the securities. I will now dish out a few

statistics, mostly taken from the Indian Securities Market Review, a publication of

the National Stock Exchange, to indicate the level of significance. While

corporate sector and governments together raised a total of Rs. 226,911 crore

from the securities market during 2018-19, there are about 20 million investors

who have invested in the securities. Tables 1 and 2 indicate the significance of the

securities market in Indian economy.

The focus on stock markets as an engine of economic growth is a new opening in financial
literature. Going further, its benefits had been largely ignored in the past, but now there is
consensus concerning the positive effects brought about by stock markets.

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REGULATORY ENVIRONMENT

The regulation of the Indian securities market is one of the best frame works of regulation among
the world. The securities and exchange board of India is the main regulatory body for Indian
securities market. SEBI was formed under the SEBI Act, 1992 for the purpose of protecting the
small investors’ rights and this organization has been working for this purpose very efficiently and
hardly. It has formed many rules and by laws for efficient regulation of Indian securities market.
Some of the regulations for the securities market are highlighted below.

SEBI Act, 1992

● CHAPTER I (Preliminary)
● CHAPTER II (Establishment Of The Securities And Exchange Board Of India)
● CHAPTER III (Transfer Of Assets, Liabilities, etc. Of The Existing Securities
And Exchange Board To The Board)
● CHAPTER IV (Powers And Functions Of The Board)
● CHAPTER V (Registration Certificate)
● CHAPTER VI (Finance, Accounts And Audit)
● CHAPTER VIA (Penalties and Adjudication)
● CHAPTER VIB (Establishment, Jurisdiction, Authority and Procedure of Appellate
Tribunal
● CHAPTER VII (Miscellaneous)

30
Depositories act, 1996

● CHAPTER I (Preliminary)
● CHAPTER II (Certificate Of Commencement Of Business)
● CHAPTER III (Rights And Obligations Of Depositories, Participants, Issuers
And Beneficial Owners)
● CHAPTER IV (Inquiry And Inspection)
● CHAPTER V (Penalty)
● CHAPTER VI (Miscellaneous)
In addition to above mentioned acts, Securities Contracts (Regulation) Act, 1956 is there for
regulation.

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TRADING WITH STOCK MARKET

This section will introduce us about the process and instruments used to help a customer or a

client to trade with arcadia securities. This process is almost similar to any other trading firm but

there will be some difference in the cost of brokerage commission.

Trading: It is a process by which a customer is given facility to buy and sell share this buying

and selling can only be done through some broker and this is where Arcadia helps its customer.

A customer willing to trade with any brokerage house need to have a demat account, trading

account and saving account with a brokerage firm. Any one having following document can open

all the above mentioned account and can start trading.

Document Required

❖ 3 photographs ( signed across)

❖ Photo Identification Proof - any of the following - Voter ID/Driving

License/Passport.

❖ Address Proof any of the following - Voter ID/Driving License/ Passport/ Bank statement or

pass book sealed and attestation by bank official/ BSNL landline bill.

32
❖ A crossed Cheque favouring “Reliance Securities Stock Broking”. Of the required amount.

The amount for Demat as well as trading will be Rs. 900/-(free Demat +900 Trading Account)

the minimum amount being Rs. 900 a cheque can be given for a larger amount.

❖ Copy of PAN Card is mandatory.

❖ Registration Kit

❖ CDSL Demat Kit

❖ Bank and address proof declaration.

❖ PAN name discrepancy form.

These documents may not be consumer friendly but it is to avoid illegal transaction and to prevent

black money this ensures that money invested is accounted.

33
Techniques and Instruments for Trading

The various techniques that are available in the hands of a client are:-

1. Delivery

2. Intraday

3. Future

4. Forwards

5. Options

6. Swaps

Basic Requirement for doing Trading

Trading requires Opening a Demat account. Demat refers to a dematerialized account.

You need to open a Demat account if you want to buy or sell stocks. So it is just like a bank

account where actual money is replaced by shares. We need to approach the Depository

Participants (DP, they are like bank branches), to open Demat account.

A depository is a place where the stocks of investors are held in electronic form.

The depository has agents who are called depository participants (DPs).

Think of it like a bank. The head office where all the technology rests and details of all accounts

held is like the depository. And the DPs are the branches that cater to individuals.

34
There are only two depositories in India –

❖ The National Securities Depository Ltd (NSDL) and the

❖ Central Depository Services Ltd (CDSL).

35
COMPANY
PROFILE

36
COMPANY PROFILE

Reliance Money/Securities, a Reliance Capital company, is part of the Reliance Anil Dhirubhai
Ambani Group. It is a comprehensive financial services and solution provider providing
customers with access to
~ Equity
~ Equity and Commodity Derivatives
~ Portfolio Management Services
~ Mutual Funds
~ IPOs
~ Life and General Insurance and
~ Gold Coins
~ Customers can ·also avail Loans, Credit Card, Money Transfer and Money Changing
services.

37
INCEPTION OF RELIANCE MONEY

Reliance Money started operations in April 2007. The company is adding about 2,000 to 2,500
customers every day. It currently has about 1.65 lakh customers and the traded volumes have
crossed about Rs 1,200 crore. It has tied up with Chicago-based Alaron Trading Corporation, a
global, full-service commodity futures brokerage firm. !'Expanding our global presence, especially
with a company of the stature of Reliance Money, allows Alaron to seamlessly embrace the rapid
expansion in the futures market," Scott Slutsky,. Managing Director of Alaron Trading, told news
agencies. Alaron's trading platforms offer direct access to virtually every electronic and pit-traded
contract in the world. Reliance Money will facilitate the trading process through its 88 branches
and 2,200 outlets in India."Through this important window provided by Alaron, our customers in
India will be in a position to readily trade international commodity futures in a cost effective,
convenient, and secured manner," said Sudip Bandyopadhyay, Director of Reliance Money.
The Reliance - Anil Dhirubhai Ambani Group is among India's top three private sector business
houses on all major financial parameters, with a market capitalization of Rs.325,000 crores (US$
8 billion), net assets in excess of Rs.115,OOO crores (US$ 29 billion), and net worth to the tune
of Rs.55,000 crores (US$ 14 billion). Across different companies, the group has a customer base
of over 100 million, the largest in India, and a shareholder base of over 12 million, among the
largest in the world. Through its products and services, the Reliance - ADA Group touches the life
of 1 in 10 Indians every single day. It has a business presence that extends to over 20000 towns
and 4.5 lakhs villages in India, and 5 continents across the world.

38
 ✔ Reliance Capital Group says, "We haven't entered this business to take a share in this
market. We are going to expand the market."He explains, 'The number of investors in
mutual funds is about 30 million going by the folios. The number of individual bank
accounts in the country is about 330 million. But the number of demat accounts has
stagnated around 5.8 million for the past decade."

✔ Reliance Money is an all-India presence and a reach that is on a par with what State Bank
of India enjoys with about 9,500 branches..
✔ Reliance Money's key business driver may be its pricing strategy. It has decided to levy a
flat charge of Rs 500 per annum for trading volumes of up to Rs 1 crore and slightly higher
charges for higher volumes. Currently competing brokerages charge something in the
region of 0.5% to 1% on each transaction.

✔ As the company later puts it, "Brokers charge you 1% if you buy 10 shares. They charge
someone else 1% of the cost of 100 Shares, if they buy 100 shares and similarly 1% of
1,000 shares if you buy 1,000 shares. There is no extra effort involved except punching in
an extra zero. Why pay just to punch an extra zero?"

OBJECTIVE OF THE COMPANY

The main objectives of the company are as follows

To attain global best practices and become' a world-class financial services enterprise
guided by its purpose to move towards greater degree of sophistication and maturity.

39
 To work with vigor, dedication and innovation to achieve excellence in

service, quality.
Reliability, safety and customer care as the ultimate goal.
To earn the trust and confidence of all stakeholders, exceeding their

expectations and make the Company a respected household name.

To consistently achieve high growth with the highest levels of productivity. To be a
technology driven, efficient and financially sound organisation.
To contribute towards community development and nation building.
To be a responsible corporate citizen nurturing human values and concern

for society, the environment and above all the people.

To promote a work culture that fosters individual growth, team spirit and

creativity to overcome challenges and attain goals.

To encourage ideas, talent and value systems.
To uphold the guiding principles of trust, integrity and transparency in all aspects of
interactions and dealings.

MILESTONES ACHIEVED SO FOR

In last 12 months Reliance Money have taken giant strides. It has been: India's
Top Broking and Distribution house..
The largest broker with distribution reach of 20,000+ touch points, 10,000+

outlets across 4000 towns/cities

1 lakh transactions on an average, in the money transfer business.
Amongst the largest private sector partners of Western Union Money Transfer in India.

40
 GROWTH OF THE ORGANIZATION

The growth 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.
● Reliance Money generated revenues of Rs.50.86 billion (US$ 740 million) for the year
March 31, 2017. It also achieved net profit of Rs.4.60 billion (US$ 67 million) for the same
period.
● Reliance Money is amongst the leading mutual fund distributors of the country distributing
products of 20 AMes. It is the largest private sector partner for Western Union Money
Transfer in India.
● The Rs 352 crore online broking and distribution major, Reliance Money, is the first mover
in deploying technology tools across its operations. Having all of its operations automated
with tightly controlled risk management.
● The company believes IT brings in and finds that technology usage would ensure high data
availability, accuracy and integrity to the trading business and help differentiate oneself
from the competition. The IT head, Mr.Arvind Tawade, has left no stone untamed in
driving the IT benefits to users. Being a strategic planner, he has evolved a clear IT
blueprint categorizing IT under three portfolios such as expansion, strategic and sustenance
which address all challenges as a cost control, mitigating risk, and helping in expansion to
address a larger audience.
● The increase was primarily due to the expansion of the distribution network and increase
in its customer base.

41
GROWTH DRIVERS OF RELIANCE MONEY

TRUST

ENTERPRISE INTEGRITY

HARD WORK & GROWTH DRIVERS FOR DEDICATION

TEAM PLAY RELIANCE MONEY

EMPATHY & COMMITIMENT

HUMANITY

LEARNING &
INNOVATION

● Reliance Money is a comprehensive financial. services and solutions provider, providing

customers with access to equities, equity options and commodities futures, wealth
management, portfolio management services, mutual funds, IPOs, life and general
insurance~ products, offshore investments, credit cards, money transfer, currency
exchange and gold coins.

42
● Reliance Money has tied up with global partners like Reuters, Vasco, Valcambi, Webaroo,
OptionsXpress Holdings, Goldride Securities, Wodd Gold Council, Wincor Nixdorf and
DBS Vickers to facilitate better access to wider world class choices to its customers.
● In addition to the home-grown portfolio of products and services that Reliance Capital has
to offer, Reliance Money also distributes a variety other~ 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 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 share holding 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
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.

43
 ● 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 (HKMEx).
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
finn 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. (NMCE).

NATURE OF THE BUSINESS CARRIED

Reliance money is carrying business such as it is giving a service of online trading with less
brokerage Charge, and it also having· financial products such as Life Insurance . General insurance
giving investment facility in Equity, mutual fund, PMS, and also it is carrying a . money transfer
and money exchange, and also dealing with gold coins.

VISION MISSION AND QUALITY POLICY

VISION

44
The vision of Reliance Money is to achieve & sustain market leadership, Reliance Money shall
aim for complete customer satisfaction, by combining its human and technological resources, to
provide world class quality services. In the process Reliance Money shall strive to meet and exceed
customer's satisfaction and set industry standards.

MISSION
The mission of the company 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.

QUALITY POLICY
Talented, efficient and competent team of youngsters rolling out high profile applications for
the global business community, keeping in mind true quality, total customer satisfaction,
delivering on time, right time, every time.

Creatively involved in providing high quality products and services through:

• Responsiveness to customer needs.
• Provision of work satisfaction and promising careers. .
• Constant measurement and monitoring of all operations.
• Continuous improvements of procedures, products, and services; and
• Performance of operations in a responsible manner.

PRODUCT AND SERVICE PROFILE

45
'Reliance Money provides a· comprehensive platform, offering an investment avenue for a wide
range of asset classes. Its Endeavour is to change the way India transacts in financial markets and
avails financial services. Reliance Money currently offers its services in Broking and Distribution
of Financial Services and Products.

EQUITY
• Separate Dealing Room for HNI, Institutional & Corporate Clients at the head office
in Mumbai, manned by expert dealers
• Relationship Manager assigned for each large relationships.
• Tools that help plan investments, tax, retirement, etc.
• Risk profile analyzer
• Asset allocators to build an appropriate investment portfolio..

EQUITY AND COMMODITY DERIVATIVE

• Trading and Clearing membership of BSE, NSE, MCX and NCDEX providing
broking
• services in Equity, Equity & Commodity Derivatives
• Option of on-line as well as off-line trading
• Trading is completely secure with 3 levels of security i.e. User ill, Password and Security
Token, which is available only with Reliance Money Portfolio Management Services
(PMS)
• Investors get regular statements and updates on the investments
• Investors get access to Relationship Managers Financial Advisors through whom they

dill interact with Fund Managers to discuss their portfolio

46
WEALTH MANAGEMENT SERVICES
• End to end Wealth Management Services.
• Assessing financial health and risk profiling of the client.
• Tax Advisory includes buying, selling, renting and valuation of properties..
• Mutual Funds
• Distribution of equity and debt products from leading AMCs including structured
products such as Portfolio Management Services.
• Financial Planning Through SIPs.
• Systematic Investment Plans (SIPs)
• SIP is a method to increase exposure to equities gradually over a long period of time
say over 5-10 years by investing in equity funds by using the concept of rupee cost of
averaging.
• Disciplined investing in equity funds over longer time frames coupled with power of
compounding helps generate superior returns.
• SIP provides better downside protection as the amount invested each month is very
small compared to the overall investment.

IPO
• IPO Distribution: Reliance Money distributes all IPOs (Book Building as well as Fixed
Priced) pan India through its distribution channel (Online + Offline) and helps get IPO
• Investment benefits by providing end to end assistance

47
• Life and General Insurance
• Life Insurance
• Reliance Money provides Life Insurance that helps provide financial assurance and
securities for your dependents and loved ones. Life Insurance products offer
comprehensive financial solutions which besides offering financial security also provide
opportunity for saving, investment and tax planning..
• General Insurance
• Reliance Money extends various General Insurance products with an exhaustive range of
insurance policies that covers most risk including Motor, Health, roperty, Marine,
Casualty, Credit and Liability
• Pure Gold Coin
• Gramm age: 0.5 gram, 1 gram, 5 gram and 8 gram, Pure Gold Swiss Coins
• Purity: 24 carat, 99.99% pure
• Fineness: 999.9 (Highest purity that can be achieved in Gold)
• Packaging: Available in a see through, tamper-proof packaging with a certificate
of purity from Swiss Assayer
• Availability: All India, across all Reliance Money and Reliance World outlets

MONEY CHANGING.
• Reliance Money Express is a Full-Fledged Money Changer (FFMC) authorized
by the Reserve Bank of India for foreign exchange transaction
• Sales and Purchase of Foreign Currency Notes.
• American Express Traveler's Cheques and Prepaid Foreign Currency

48
AREA OF OPERATION
Reliance Money offers the services not only all over India but also outside India.
Reliance Money is one of the leading brokerage and distributors of financial products in
India with more than 3.3 million customers.

OPERATION IN INDIA
As on March 31, 2009, Reliance Money had a distribution network of 10,350 outlets
across 5,165 locations in India.
TABLE 1 : Detail Scale of Operation of Reliance Money In India

Scale Of Operation On 31st March 2018

Revenue 3.3 billion

Net Income .8billion
Total Assets 36.3 billion
No. of Employees 18,208
Total no. of customers 3.5 million

Overseas Branches of Reliance Money

• Hong kong
• Malaysia
• Muscat
• Nigeria

49
OWNERSHIP PATTERN

Reliance Capital is one of India's leading and fastest growing private sector financial services
companies, and ranks among the top 3 in terms of net worth. Reliance Money, a Reliance Capital
company, is part of the Reliance Anil Dhirubhai Ambani Group. It is a comprehensive financial
services and solution provider providing customers with access to Equity, Equity and
Commodity Derivatives, Portfolio Management Services, Mutual Funds, lPOs, Life and General
Insurance and Gold Coins. Customers can also avail Loans, Credit
Card, Money Transfer and Money Changing services. The largest braking house in India with over
2.5 million customers and a wide network of over 10,000 outlets and 20,000 touch points in 5,000+
locations. The average daily volume on the stock exchanges is Rs. 2,000 crores, representing
approximately 3% of the total stock exchange volume.
The Reliance - Ani! Dhirubhai Ambani Group has a market capitalization of Rs.325,000 crores
(US$ 81 billion), net assets in excess of Rs.115,OOO crores (US$ 29 billion), and net worth to the
tune of Rs.55,000 crores (US$ 14 billion). Across different companies, the group has a customer
base of over 100 million, the largest in India, and a shareholder base of over 12 million, among
the largest in the world. It has a business presence that extends to over 20000 towns and 4.5lakhs
villages in India and 5 continents across the world.

50
FOUNDER OF RELIANCE

Few men in history have made as dramatic a contribution to their country's economic fortunes as
did the founder of Reliance, SH. Dhirubhai H Ambani. There is more than one unique way of
describing the true genius of Dhirubhai: The corporate visionary, the unmatched strategist, the
proud patriot, the leader of men, the architect of India's capital markets, and the champion of
shareholder interest. When Dhirubhai embarked on his first business venture, he had a seed
capital of barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he
converted this fledgling enterprise into a Rs 60,000 crore colossus-which earned Reliance a place
on the global Fortune 500 list, the first ever Indian private company to do so. Dhirubhai is widely
regarded as the father of India's capital markets. In 1977, when Reliance Textile Industries
Limited first went public, the Indian stock market was a place patronized by a small club of elite
investors which dabbled in a handful of stocks. Dhirubhai always kept the interests of the
ordinary'

51
shareholder uppermost in mind in the process making millionaires out of many of the .initial
investors in the Reliance stock, an creating one of the world's largest shareholder families.
CHAIRMAN'S PROFILE

Regarded as one of the foremost corporate leaders of

contemporary India, Shri Anil D Ambani, is the
chairman of all listed companies of the Reliance ADA
Group, namely, Reliance Communications, Reliance
Capital, Reliance Energy, Reliance Natural Resources
and Reliance Power.

Infrastructural facility
The Reliance money financial service ltd, is located in Bangalore- Ulsoor
The company has rented property:
Total Area rented by the company is located : 3,000 square feet.
Built in Area of the company : 2,800 square feet.
All the member of the company employees are good in communication. Also good information
air technology support is available. Cleanliness is given utmost importance in the company.
There are air- conditioners, proper lighting and ventilation and Tele communication facilities. The
Reliance money company also provides Travel allowances, and Medical allowance facilities to the
employees and parking facility is also available.

52
TECHNOLOGY
With over 50000 sq ft of built infrastructure they have used technology to enable their business
and delivery services with cutting edge technology. They have established a dedicated technology
data at with built-in all purpose redundancies to support their clients. The various aspects with
regards to infrastructure are described below:

HARDWARE
Reliance money has invested in state-of the-art infrastructure for its data and server farms and has
tied up with leading technology companies for supply of class server hardware and high
workstations They provide continuous systems integration and support for the facilities at their
office. The server infrastructure support hybrid platforms and it has been designed for high
availability transaction volumes. The work desks are occupied with finest workstation at
operational levels.

SOFTWARE DEVELOPMENT
The Reliance money in-house development team is fully occupied with the latest tools of
development and are trained and certified periodically with the industry best practices by experts
from the industry.

NETWORK
The local area networks are deployed using Cat6 cables for data and Cat6 cables for voice with
the fancily to create segregated virtual user and corporate LANS.

53
More recently Reliance money has also started migrating to the MPLS network to connect with
their branches and provide world class infrastructure at each of our location.

Key Achievements.
Reliance Money has achieved many milestones like-
Reliance Centre, Mumbai is now a certified Green Buildingas per the Green Existing
Building Rating System and has been awarded Gold by the Indian
Green Building Council April 2019.
Reliance General Insurance had been awarded the prestigious ISO Certification
9001:2015.
Reliance Asset Reconstruction Company won the “Best Asset Reconstruction Company”
award at the event 2018.
Rated No.1 Broking House in India by Starcom.
Awarded the 'Red hat World is open Award' for launching highly successful internet
Trading Kiosk. The award and the process was driven by Stock
Consultancy Private Limited.
Awarded the 'Employer of Choice Award' for creating opportunities for the youth in the
Financial Services Sector. The award was given by the Indira
Group of Institutes, Pune.
Mr. G.N. Nagraj, CTO, Reliance Money has been awarded the 'CIO of the year Award'
by IT people.

54
WORK FLOW MODEL.

Reliance money

Bank interface

Surveillance.

Administrative
server.

BSE/ NSE
terminal.

D P Interface.

55
FUTURE .GROWTH & PROSPECTS
The growth of financial sector in India at present is nearly 8.5% per year. The rise in the growth
rate suggests the growth of the economy. The financial policies and the', monetary policies are
able to sustain a stable growth rate. The reforms pertaining to ~he monetary policies and the macro
economic policies over the last few years have influenced the Indian economy to the core.
The major step towards opening up of the financial market further was the nullification of the
regulations restricting the growth of the financial sector in India. To maintain such a growth for a
long term the inflation has to come down further. The financial sector in India had an overall
growth of 15%, which has exhibited stability over the last few years, although several other
markets across the Asian region were going through turmoil. The development of the system
pertaining to the financial sector was the key to the growth of the same. With the opening of the
financial market variety of products and services were introduced to suit the need of the customer.
The Reserve Bank of India (RBI) played a dynamic role in the growth of the financial sector of
India.

FUTURE PROSPECT OF RELIANCE MONEY

Reliance Money, the financial services arm of Reliance Capital Ltd, plans to launch portfolio
management services (PMS), where managers will create a basket of stocks for each client, based
on individual needs, for amounts as low as Rs5 lakhs. Such services are popular in India but,
almost all the offerings of large

56
finance companies target high net worth individuals (HNIs) with the ability to invest Rs l crore
and above. Reliance Money, which helps clients invest in equities, derivatives and commodities,
will typically offer such services for amounts between Rs5 lakhs and Rs75 lakhs; Rs5 lakhs is the
smallest amount the industry's regulator mandates for PMS. Reliance Money will launch its PMS
ion December and will especially target executives and professionals in metros and smaller towns.
Reliance Money would not take a fee unless the portfolio earns a return higher than 8%. If the
client earns a return of 8-20%, the fee charged will be 10% of the absolute returns and if the client
earns more than 20%, the fee will be 20%. The company: plans to offer a large-cap investment
portfolio (where the stocks invested in will be those of large-cap companies), blue chip portfolio
(blue chip companies) and an infrastructure portfolio (companies in the infrastructure
sector).Reliance Money, which started operations in April, already has around 250,000 invest or
accounts and 3,000 outlets by law, while others are optional agreeing to the terms of an insurance
policy.

TRUST

ENTERPRIS INTEGRIT

HARD WORK & GROWTH DRIVERS FOR

TEAM PLAY RELIANCE MONEY DEDICATIO

EMPATHY &
COMMITIMEN

53
LEARNING &

57
 STRATEGY

Strategy is the planning devise to maintain and build competitive advantage over the
competition. The main strategies made by Reliance money

► The main strategy is to maintain the consistency in quality and provide

good

quality services to their clients.

► to attain global best practices and become world class financial services

enterprise- guided by its purpose to move towards greater degree of sophistication and
maturity.

► To adapt new technologies fast.

RELIANCE CAPITAL

Reliance General Reliance Reliance Reliance Consumer

Reliance

Insurance Life Money Finance

58
 Business needs to be organized in a specific form of shape that is generally referred to as
organization structure. It constitutes the basic organization of the company, its department,
reporting lines, areas of expertise and responsibility.

Reliance Money has 6 departments and the details of the same are as following
DEPARTMENTS OF RELIANCE MONEY

Reliance Money

Sales & Marketing Human Operations

Administration Finance
Distributions Department Resources Departmen
Department Department Departmen
Department

ADMINISTRATION DEPARTMENT

Administrators are basically facilitators of the company. They take care of all the facilitating
activities of all the departments. They help in coordinating different activities in an
organization from selecting the location of the outlet to providing necessary infrastructure and
maintaining the same. Main Activities of Administration Department:
Selecting the location.
Providing with the required infrastructures like computers, furniture, fittings & fixtures,
air conditioners etc.
Providing the storage facility.
Looking after Marketing, Branding, and Legal, Sales and Distribution, payment of
salaries and other payments required for the functioning of day

59
 to day activities

SALES AND DISTRIBUTION DEPARTMENT

In Reliance Money sales and distribution department plays an important role in the
following way
Collecting the leads from the website, kiosks and trainees.
Contacting the clients through direct contact or mails.
Explaining the features of the products.
Explain about the essential documents.
Facilitate the customers with a Demo.

MARKETING DEPARTMENT
Marketing is the delivery of customer satisfaction at a profit. Marketing, any other business
function deals with customer. Creating customer value and satisfaction are the heart of the modem
marketing. Therefore two fold goal marketing is to attract new customers by promising superiors
value and to keep current customers by delivering satisfaction.
In Reliance Money marketing highlights on
Understanding consumer needs and wants. Value
satisfaction and quality.
Products and services.
Exchange, transfer and relationship.

HUMAN RESOURCE DEPARTMENT

60
HR adds considerable value when it creates a customer focused corporate culture. In Reliance
Money they follow that HR professional must be highly knowledgeable about the market place for
capital, products and services. HR must not only be knowledgeable of specific customer issues,
but also of key aspects of the macro-societal environment such as:
Changing values.
Major problems and the challenges, which are shared by the large segments of the
population.
Structures of inter-personal relationship that influence buying process. Talent
management.

HR Functions in Reliance Money:

Talent acquisition
Talent development
Talent management

Figure 5: Human Resource department of Reliance Money

Talent National Zonal Head Regional

Acquisition Head Head

Reliance Learning & National Zonal Head

Money Head Development Head
HR

61
 Talent
Management

OPERATION DEPARTMENT
The role of operation department is to carry out the policies and underwriting works. The other
functions include performing the day to day activities as well as smooth functioning of enterprise
business.
Following are the important functions of the operations department of Reliance Money
Issuing the policies.
Verification of the documents.
Settling down the claims.
Charges deduction.
Dispatching the policy documents.
Settling the customer's problems.
Making records related with the customers.
Follow up.

FINANCE DEPARTMENT
Finance is the life blood of the organization it is one of the main departments in the company. To
run any organization it should have sufficient fund and it should carry the cost as minimum as
possible. The company may arrange required finance by the way of the equity fund or by way of
debt fund. Whatever it may be the ultimate goal of the finance department is to maximize that
value of the firm to its equity shareholders.
Responsibilities of Finance Department in Reliance Money are:

62
 To provide account and complete systematic information of financial

activities
To maintain all the books of account and other financial documents
To prepare periodic financial statements have the company like Profit & Loss account
and Balance Sheet.

The Four Main Functions of Finance Department of Reliance Money are

Financial decision
Investment decision
Dividend decision
Capital structure decision

SKILLS
It means the actual skills and competencies of the employees working for the
company and the company itself what the company does the OOst- the distinctive
capabilities and competencies that reside in the organization. Reliance Money is
best known for its network. It's all India presence gives a competitive look. The
company is doing well in adopting new products and services.

STYLE
All organizations have their own management style. The style refers to how managers behave in
an organization and how collectively spend their time to achieve the organizational goal.
In Reliance Money the leadership is not much effective as the groups are not performing as real
team. In the team also they have competition which affects the team culture.

63
SYSTEMS
The systems consist of formal and informal procedures, including innovation systems,
compensation systems. The systems also include data collection, storage and utilization for record
and appraisal purposes. (Management information systems i.e. reports of various departments,
financial information system i.e. marketing and sales information, employee information system.

STAFF
The staff of Reliance Money is divided into national head, regional head, zonal head, cluster
head and centre manager, minimum education for the managers is master degree in MBA and
work experience. Reliance money adopts various training facilities to,
Upgrade the skills of the employees
Enable the employees to contribute towards organizational objectives.
Facilitating a self learning
The company has developed skills and expertise in sales and marketing of Demat,
insurance, and other products

SHARED VALUES
Shared values also refer to the values and beliefs of the company. The value helps the members
in the organization to achieve effective goals.
The Reliance Money is committed to abide to the following values and responsibilities:

64
Be a lean, responsive and learning organization.
Continuously improve to achieve world-class standards and total customer

satisfaction.
Maintain cost effective service to the customer.
Ensure a common culture and a common set of values throughout the

organization
Recognize individuals' contributions.
Develop stronger leadership skills, greater teamwork and a global perspective.

65
COMPETITORS
DETAILS

66
COMPETITORS

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

1. ICICI securities
2. H. D.F.C. securities
3. Marwadi
4. 5 Paisa.com
5. Karvy

ICICI Securities Limited is India’s leading full service investment bank with a dominant
position in all segments of its operations - Corporate Finance, Fixed Income and Equities.
It is a subsidiary of ICICI Bank, the largest private sector bank in India and operates out of
Mumbai with offices in New Delhi, Chennai, Kolkata, New York, London and Singapore.
Under the able leadership of Mr. Mukherji, Managing Director and CEO, ICICI Securities
continues to grow as reflected in its performance over the past couple of years.

The Corporate Finance team has consistently been among the top players in M&As and
fund raising from domestic and international capital markets.

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The Equities team is a major Indian brokerage house and its research covers over 90% of
Sensex market capitalization. The bond research of the Fixed Income team is a benchmark
for the industry.

The eminent position of ICICI Securities is reflected in the number of awards that our
teams in the Fixed Income, M&A and Equity Capital Markets win. Our Fixed Income team
for the last two years (CY04 and CY05) has been adjudged as the “Best Bond House” in
India by both Asiamoney and Finance Asia. The Equities team was adjudged as the ‘Best
Indian Brokerage House-2003’ by Asiamoney. The Corporate Finance team tops the
M&A/Capital markets league tables regularly.

Our wholly owned subsidiary, ICICI Brokerage Services Limited (IBSL), buys and sells
equities for our institutional clients. ICICI Securities has a U.S. subsidiary, ICICI Securities
Inc., which is a member of the National Association of Securities Dealers, Inc. (NASD).
As a result of this membership, ICICI Securities Inc. can engage in permitted activities in
the U.S. securities markets. These activities include dealing in securities markets
transactions in the United States and providing research and investment advice to US
investors.

HDFCsec is a brand brought to you by HDFC Securities Ltd, which has been promoted by
the HDFC Bank & HDFC with the objective of providing the diverse customer base of the
HDFC Group and other investors a capability to transact in the Stock Exchanges & other
financial market transactions.

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HDFCsec will equip you with the necessary tools to allocate, select and manage your
investments wisely, and also support it with the highest standards of service, convenience
and hassle-free trading tools.

Our mission is to provide our customers with the most useful investment guidance and
investment-related services available in the country. We want to become a one-stop solution
for all your investment needs, one that will help you get the most out of your money.

We are one of the leading online broking houses in India, with a dominant position in both
institutional and retail broking.

Products & Services

● Online trading for Resident & Non Resident Indians.

● Cash-n-Carry on both NSE and BSE.
● Day trading on both NSE and BSE.
● Trade on Futures & Options on the NSE.
● Online IPO's.
● Telephone-based Broking (Equity & Derivatives).

Later, our service range will be enhanced to include the following:

● Online Buying and selling of select mutual funds units

● Online Purchase of insurance policies
● Facilitating asset financing (house and car loans for instance).

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Marwadi Group is a decade old financial service group offering Stock-broking and Commodity
broking through NSE, BSE, NCDEX and MCX. We also offer depository services as DP of NSDL
and CDSL. We spread through out India with our 33 plus branches, 400 plus business associates
and manpower strength of over 300 employees. We firmly believe in customer centric and
transparent approach which is backed up by strong technological support. About 1,00,000-
customer base, whose various investment needs are served indicates our index of customer
credibility. We have always been driven by a desire to create values for our customers-First
approach, ethical and transparent business practices, reverence for professionalism and
implementation of cutting edge technology. We strive to provide with the best services and make
our clients' life as simple as possible. And this has enabled us to flourish into one of the top-50
stock broking houses in India.

A convincing index of our customer loyalty is that nearly 75% of our customers have been with
us for a period of more than three years. This means that a bulk of our customers have subscribed
to our services on a long term-basis.
Marwadi Group strength lies in its team of confident, young, talented, qualified and experienced
professionals to carry out different functions under the able leadership of its management.

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 OBJECTIVE OF
THE STUDY

OBJECTIVE OF STUDY

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➢ To study research process was undertaken to assess the market growth and opportunities
in the equity trading sector for Reliance money.
➢ To study the basic purpose of the research was to know the market conditions by knowing
the preference and expectations of the share brokers with respect to the services provided
to them by their individual brokers.
➢ To study this in turn would lead us to know about the services they desire and the potential
this market holds which can be grabbed by putting through the right foot forward by
providing the adequate services and gaining a good market share.

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 RESEARCH METHODOLOGY

INTRODUCTION TO RESEARCH -

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“Research is a careful investigation or inquiry especially through search for new facts in any
branch of knowledge”

-Research is a systematized effort to gain new knowledge

-Research is a movement from the known to the unknown

-Research is a voyage of discovery.

TYPE OF RESEARCH-

The research study was a descriptive research; the objective of descriptive research is to portray
accurately the characteristics of a particular individual, situation or a group.

Descriptive research includes surveys and fact-finding enquiries of different kind’s .The major
purpose of descriptive research is description of the state of affairs as it exists at present .In social
science and business research often used term is Ex Post Facto Research for descriptive research
studies. The main characteristics of this method is that the researcher has no control over the
variables; he can only report what has happened or what is happening .Most Ex post facto research
projects are used for descriptive studies.

Descriptive research includes attempts by researchers to discover causes even when they cannot
control the variables .The methods of research utilized in descriptive research are survey methods
of all kinds, including comparative & co relational methods.

RESEARCH APPROACH-

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The approach in this study is Quantitative. Quantitative approach to research is concerned with
mass assessment of opportunities that can be made by the assessment of the data.

Limitations:

The project has been subject to the following limitations:

o The study is conducted with the data available and the analysis was made
accordingly.
o It was tough to get all relevant facts from the personnel and employees concerned
due to some secret document not provided by the business organization, which is
inherent in an industry.
o Time factor was a limitation as only a stipulated period had been ascertained to
me while the personnel had little time to my queries due to their daily busy
schedule.
o It is not feasible to compare all the products of various brokerage firms.
o At times due the fluctuating market conditions many of the times the

respondents were not fully cooperative for the data collection.

RESEARCH PROCESS

The research process consists of series of actions or steps necessary to effectively carry out the
research. The different steps which were taken in this research work are as under-

(1)-Defining the research problem.

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(2)-Specifying research objective.

(3)-Preparing research design.

(4)-Data collection method.

(5)-Selecting the sample type or source.

(6)-Determining the sample size.

(7)-Organizing and carry out the field work.

(8)-Analyzing the collected information.

(9)-Conclusions and suggestions to the company.

Firstly the research problem was identified i.e. the problem for which research is necessary (In this
research the research problem is the

“ANALYSIS OF MARKET OPERATIONS OF BUSINESS PARTNERS IN STOCK BROKING

INDUSTRY AND ITS FUTURE PROSPECTS”) after this the research objective is specified
which is to collect data from the different respondents & analyze it to go to the findings.

The next step is to prepare a research design which is as under-

Research Design-

Research Design means to state the conceptual structure within which research would be
conducted.

Data Collection Method-

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 The data collection method was data collection through questionnaires directly filled by the
respondents.

Sample Type –

The sampling was deliberate sampling or convenience sampling. Convenient was used to get
information from the sources which were most liable to give accurate information.

Source of Data –

The data used was primary data only collected directly by the use of questionnaires. Primary
Data can be defined as the data which are collected a fresh and for the first time and thus happen
to be original in character.

The respondents selected were the share brokers in Lucknow selected from different locations acc.
to the convenience.

Sample size-

The number of respondents taken to be were 50 while selection the sample size case has been
taken such that it fulfills the requirements of efficiency, reliability and flexibility.

Research Methodology is the way to solve the research problem. It considers the logic behind
the study and explains why we are using a particular method and why we are not using others,
so that the results are capable of being evaluated by the researcher himself or by the others.

DATA ANALYSIS

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Q 1 . Do you trade in stock market?

a) Yes

TRADING

YES
NO

b) No

Q 2. What kind of stock investor are you?

a) I invest personal/ family money

b) I invest professionally
c) Both

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 INVESTMENT

I INVEST PERSONALLY
I INVEST
PROFESSIONALLY
BOTH

Q 3: What sources of funds do you utilize to invest or trade in the stock market?

a) Savings/Personal
b) Loans
c) Pledging

SOURCES OF FUNDS

SAVINGS/PERSONAL
LOANS
PLEDGING

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Q 4: What would you prefer among the following?

a) High risk high profit

b) Low risk low profit
c) Moderate

PROFIT EXPECTATION

HIGH RISK HIGH PROFIT

LOW RISK LOW PROFIT
MODERATE

Q 5: What is your pattern of investing?

a) Repeatedly invest or trade in same set of stocks
b) Invest or trade in variety of stocks
c) Depends on other factors

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 PATTERN OF INVESTING

SAME STOCKS
VARIETY
OTHERS

INTERPRETATION

There's clearly a lack of broad participation. Of a population of over one billion, barely 18
million invest in equity markets. According to Sebi data, 10 cities contributed over 80% of
trading volume in 2010.
The erratic behaviour in the equity markets also indicates that these are not only highly
speculative but also lacks support from a large base.

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SWOT ANALYSIS

SWOT analysis means analysis of the internal strengths and weakness of the company and also
analysis of external opportunities and threats of the company.

STRENGTH
On line share trading.
Flexible organization Low
brokerage services High
speed trading
Brand name of the Company. No

hidden charges.

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 Customer education center
Convenient & Safe
Single - Window Access
Cost effective
Value-Added services

WEAKNESSES
No Service in Rural Segment.
Clients are still comfortable with traditional way of trading.
For the intraday system automatically sell the shares at 2.55pm

OPPORTUNITIES
More Potential Market.
Awareness through Media.
Foreign Direct Investments & Foreign Institutional Investors in Indian markets.

THREATS
Market fluctuations
Government polices and war atmosphere from neighboring countries.
Competition from banks and insurance sectors.
Indian market is still in the infant stages in online trading. Internet

is not available in major part of the nation.

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FINDINGS

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FINDINGS

The findings from this research are on the below mentioned points –

1. – Quality of the services offered by the brokers to the sub brokers & authorized
persons on the dimensions of –

o Product & training support.

o Transaction & processing support.
o Marketing & promotional assistance.
o Additional products & services availability.

2. - Availability of different financial products & services-

o Life insurance.
o General insurance.
o Mutual fund.
o Advisory services.
o Wealth management.
o Money transfer.
o Loans, credit cards & gold investment.

3. – The benefit of goodwill, recognition & business reputation of your broker to

your business.

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 SUGGESTIONS

&

RECOMMENDATIONS

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SUGGESTIONS & RECOMMENDATION

The most vital problem spotted is of ignorance. Investors should be made aware of the benefits.
Nobody will invest until and unless he is fully convinced. Investors should be made to realize that
ignorance is no longer bliss and what they are losing by not investing.

o After sales services and follow up calls are important for getting new references
so trained telesales should be appointed for this purpose whose sole work should
be to make feedback calls.
o Reliance is having too many financial products right from Demat account to
General Insurance and not all the salespeople are familiar with each and every
product so the work force should be segregated each group dealing in a specific
product and the sales target should be given likewise.
o While interacting with the investors I found that most of the customers are
unaware about the Mutual fund. Some of the people look upon mutual funds and
equity trading as gambling. Thus a mutual fund awareness program can help to
increase the penetration of mutual funds in the market.
o Rs950 account opening charges are too high when targeting a corporate so the
company should be flexible on this amount.
o Reliance should provide periodic training for updating the product knowledge of
various financial advisors.
o Company should have a scheme of rewards and recognition to employees and
the field persons to boost their motivation.

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o There must be proper advertisement of the company by various media like
Exhibition, Press releases, Newspaper, and Television etc.
o There should be a good research team who has to survey the market and know
about the client’s satisfaction level and also found out the potential customer.
o There must be a good infrastructure of the company to get the attention of the
public and the office should be at residential area so those customers get the
service easily.
o Though majority of the customer were satisfied with the existing function but the
organization should use some marketing strategies such as discount scheme on
amount of transaction made in a month by the regular customer. So it will enable
the customer to retain in the organization and to attract new customer.
o There should be regular training program like Workshops, Seminars, and
Meetings etc. for the sake of development of the organization and also for the
development of the employees’ performance simultaneously.

o As mentioned earlier awareness is a major factor therefore there should be some

programmes and functions arranged wherein all the business partners should be
called in along with their friends and family. This in turn would give reliance a
chance to explain their partners their policies nicely and make them feel special.
The people called along with can also be motivated to invest in the business and
huge clientele can be formed.

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o Work a lot on the buildup of the already existing brand name-use it
as the primary tool.

CONCLUSION

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CONCLUSION

The study concluded:-

Reliance money has-

❑ Brand name & market reputation.

❑ Price competitiveness.
❑ Very fast processing.
❑ Good customer care.
❑ Flexible management system.
❑ A one stops shop of all financial products.
❑ A basket of products.

The stock broking industry has-

❑ Great future.
❑ Better investment opportunities.
❑ Increased money movement.
❑ More no. of investors.
❑ More no. of brokers.

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BIBLIOGRAPHY

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BIBLIOGRAPHY

● Books
● Research Methodology (C.R.KOTHARI)
● Marketing Management (PHILIP KOTLER)
● Websites:
● www.reliancemoney.com
● www.nseindia.com
● www.bseindia.com
● www.moneycontrol.com
● www.investopedia.com

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