Introduction

Background of Exchanges

The stock trading history in India is obscured in the mists of time. Historical records, as and where they exist, rarely speak about business and speculative activity except in passing. However, the origin of stock broking in the country may go back to a time, when shares, debentures and bonds representing titles to property were first issued on the condition of transfer from one person to another and the earliest record of dealings in securities in India is the East India Company's loan securities, way back in the 18th century.

The first stock exchange in India, Tokyo Stock Exchange, which was founded in 1878. The country's second stock exchange was established in Ahmedabad in 1894, followed by the Calcutta Stock Exchange (CSE). CSE can also trace its origin back to 19th century. From a get together under a 'neem tree' way back in the 1830s, the CSE was formally established in May 1908.

India's other major stock exchange National Stock Exchange (NSE), promoted by leading financial institutions, was established in April 1993. Over the years, several stock exchanges have been established in the major cities of India. There are now 23 recognised stock exchanges — Mumbai (BSE, NSE and OTC), Calcutta, Delhi, Chennai, Ahmedabad, Bangalore, Bhubhaneswar, Coimbatore, Guwahati, Hyderabad, Jaipur, Kochi, Kanpur, Ludhiana, Mangalore, Patna, Pune, Rajkot, Vadodara, Indore and Meerut. Today, most of the global stock exchanges have become highly efficient, computerised organisations. Computerised networks also made it possible to connect to each other and have fostered the growth of an open, global securities market.

Though Stock Broking was practiced in Calcutta as early as 1836, the members of the broking profession had neither any code of conduct for their guidance, nor any permanent place for congregation. The centre of their activity was near a neem tree, where at present, stands the offices of the Chartered Bank (now known as Standard Chartered) on Netaji Subhas Road, Calcutta. In 1905, Chartered Bank began to construct their own building, which led brokers to shift the arena of their operation, the neighbourhood of the recent Allahabad Bank.

The brokers had no shelter and business was carried on in the open place. The inconvenience of such trading, prompted brokers to organise themselves and in May 1908, an association was formed under the name and style of the

Calcutta Stock Exchange Association

at 2, China Bazar Street.

At the time of incorporation in 1908, the Stock Exchange had 150 members. Today the total membership has risen to more than 900, which contains several corporate and institutional members. The number of companies listed on the Exchange is more than 3,500. The Annual turnover of the Exchange in 1997-98 was to the tune of Rs, 1,78,779 crores. The Calcutta Stock Exchange has been granted permanent recognition by the Central Government with effect from April 14, 1980 under the relevant provisions of the Securities Contracts (Regulation) Act, 1956, with a view to render useful service to investors.

In December 1993, SEBI directed the stock exchanges to discontinue the traditional system of carry forward of transactions (badla). Subsequently, it proposed an alternative system in March 1994, but no agreement could be reached on implementing this system. In February 1995, SEBI set up the G. S. Patel Committee (GSPC) to review the system of carry forward transactions. The GSPC submitted its report in March 1995. SEBI adopted the system recommended by the GSPC with some modifications in its decisions of July 27, 1995 and October 5, 1995.

This Revised Carry Forward System (RCFS) was implemented in the BSE in January 1996, but the other exchanges in which the traditional carry forward system had been prevalent before December 1993 did not come forward to adopt the RCFS. A year after the implementation of RCFS, the President of the BSE wrote to SEBI in January 1997 requesting a relaxation of certain aspects of the RCFS to make it more practical and efficient. In its meeting of March 27, 1997, SEBI reviewed the entire sequence of developments relating to the RCFS and specifically noted that while introducing the RCFS in July 1995, SEBI had decided that "the implementation of the revised carry forward system would be reviewed periodically by the Board, the first review being after three months".

History of BSE

An informal group of 22 stockbrokers began trading under a banyan tree opposite the Town Hall of Bombay from the mid-1850s, each investing a (then) princely amount of Rupee 1. This banyan tree still stands in the Horniman Circle Park, Mumbai. The informal group of stockbrokers organized themselves as the The Native Share and Stockbrokers Association

which, in 1875, was formally organized as the Bombay Stock Exchange (BSE).

In January 1899, the stock exchange moved into the Brokers' Hall after it was inaugrated by James M Maclean. After the First World War, the BSE was shifted to an old building near the Town Hall. In 1928, the plot of land on which the BSE building now stands (at the intersection of Dalal Street, Bombay Samachar Marg and Hammam Street in downtown Mumbai) was acquired, and a building was constructed and occupied in 1930.

Premchand Roychand was a leading stockbroker of that time, and he assisted in setting out traditions, conventions, and procedures for the trading of stocks at Bombay Stock Exchange and they are still being followed.

Several stock broking firms in Mumbai were family run enterprises, and were named after the heads of the family. The following is the list of some of the initial members of the exchange, and who are still running their respective business.

  • D.S. Prabhudas & Company (now known as DSP, and a joint venture partner with Merrill Lynch)
  • Jamnadas Morarjee (now known as JM)
  • Champaklal Devidas (now called Cifco Finance)
  • Brijmohan Laxminarayan
  • In 1956, the Government of India recognized the Bombay Stock Exchange as the first stock exchange in the country under the Securities Contracts (Regulation) Act.

The BSE moved into its current premises - the Phiroze Jeejeebhoy Towers - in 1980. The Bombay Stock Exchange followed the familiar outcry system for stock trading up until 1995, when it was replaced by an electronic (eTrading) system named BOLT, or the BSE OnLine Trading system. In 2005, the status of the exchange changed from an Association of Persons (AoP) to a full fledged corporation under the BSE (Corporatization and Demutualization) Scheme, 2005 (and its name was changed to The Bombay Stock Exchange Limited).

BSE-Sensex

The BSE SENSEX (also known as the BSE 30) is a value-weighted index composed of 30 scrips, with the base April 1979 = 100. The set of companies which make up the index has been changed only a few times in the last 20 years. These companies account for around one-fifth of the market capitalization of the BSE

BSE - other Indices

Apart from BSE SENSEX, which is the most popular stock index in India, BSE uses other stock indices as well:

  • BSE 100
  • BSE 500
  • BSEPSU
  • BSEMIDCAP
  • BSESMLCAP
  • BSEBANKEX

The National Stock Exchange Of India

  • The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges.
  • NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992.
  • It is a tax-paying company unlike other stock exchanges in the country.
  • On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994.
  • The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000.

NSE Group

  1. NSCCL, The Organization
  2. NSE.IT Ltd.
  3. India Index Services & Products Ltd. (IISL)
  4. Dot Ex International Limited
  5. National Securities Depository Ltd. (NSDL)

1.

NSCCL, The Organization

The National Securities Clearing Corporation Ltd. (NSCCL), a wholly owned subsidiary of NSE, was incorporated in August 1995. It was set up with the following objectives:

  • to bring and sustain confidence in clearing and settlement of securities;
  • to promote and maintain, short and consistent settlement cycles;
  • to provide counter-party risk guarantee, and
  • to operate a tight risk containment system

2. NSE.IT

Ltd

NSE.IT, a 100% subsidiary of National Stock Exchange of India Limited (NSE), is the information technology arm of the largest stock exchange of the country.

NSE.IT possesses the wealth of expertise acquired in the last six years by running the trading and clearing infrastructure of largest stock exchange of the country.

NSE.IT is an Export Oriented Unit with STP and plans to go global for various IT services in due course. In the near future the company plans to release new products for Broker Back-office Operations and enhance NeatXS / Neat iXS to support Straight Through Processing on the net.

3.

India Index Services & Products Ltd. (IISL)

  • India Index Services and Products Limited (IISL), a joint venture between NSE and CRISIL Ltd. (formerly the Credit Rating Information Services of India Limited).
  • It was set up in May 1998 toIt provides a variety of indices and index related services and products for the Indian capital markets.
  • It has a consulting and licensing agreement with Standard and Poor's (S&P), the world's leading provider of investible equity indices, for co-branding equity indices.

  • It maintains over 80 equity indices comprising broad-based benchmark indices, sect oral indices and customized indices.
  • Many investment and risk management products based on IISL indices have been developed in the recent past, within India and abroad. These include index based derivatives traded on NSE and Singapore Exchange (SIMEX) and a number of index funds.

4.

DotEx International Limited

  • DotEx was a joint venture between i-flex Solutions Ltd. and NSE.IT Ltd. Recently NSE has taken over the shareholding and management of DotEx.
  • DotEx was formed to provide world-class internet trading platforms which allows members of NSE to offer online trading facilities to their customers.
  • Members of NSE can service a larger clientele by using the automated risk management features and thus increase volumes.
  • Investors get comprehensive and updated information necessary to trade, along with a single-click convenience to fulfill their obligations
  • The initial offering of DotEx is DotEx Plaza where multiple market participants such as members of NSE, depository participants and banks can offer web-based services to their customers.
  • As a neutral aggregator and infrastructure provider, DotEx offers choice and convenience to investors.
  • DotEx products may be classified under the following broad categories:
  • Equity Trading Module
  • Trading Module

5.

National Securities Depository Ltd. (NSDL)

  • In order to solve the myriad problems associated with trading in physical securities, NSE joined hands with the Industrial Development Bank of India (IDBI) and the Unit Trust of India (UTI) to promote dematerialization of securities.
  • Together they set up National Securities Depository Limited (NSDL), the first depository in India.
  • NSDL commenced operations in November 1996 and has since established a national infrastructure of international standard to handle trading and settlement in dematerialized form and thus completely eliminated the risks to investors associated with fake/bad/stolen paper.

List of the companies in the sensex

S. NO.

NAME OF COMPANY

SECTOR

1

ACC LTD.

CEMENT

2

BAJAJ AUTO

AUTOMOBILES 2/3W

3

BHEL

CAPITAL GOODS

4

BHARTI AIRTEL

TELICOM

5

CIPLA

PHARMA

6

DR.REDDY'S LAB

PHARMA

7

GRASHIM INDUSTRIES

DIVERSIFIED

8

GUJRAT AMBUJA CEMENT

CEMENT

9

HDFC

FINANCE

10

HDFC BANK

FINANCE

11

HERO HONDA MOTORS

AUTOMOBILES 2W

12

HINDUSTAN INDUSTRIES

METAL,METAL PRODUCTS AND MINING

13

HINDUSTAN LEVER LTD.

FMCG

14

ICICIBANK

BANKING AND FINANCE

15

INFOSYS

IT

16

ITC LTD.

FMCG

17

L & T

CAPITAL GOODS AND CONSTRUCTION

18

MARUTI UDTOG LTD.

AUTOMOBILES

19

NTPC

POWER

20

ONGC

OIL AND GAS

21

RNBAXY LAB.

PHARMA

22

RELIANCE COMMUNICATION

TELICOM

23

RELIANCE ENERGY

POWER

24

RELIANCE INDUSTRIES

DIVERSIFIED

25

SATYAM COMPUTER SERVICES

IT

26

SBI

BANKING AND FINANCE

27

TCS

IT

28

TATA MOTORS

AUTOMOBILES

29

TAAT STEEL

METAL,METAL PRODUCTS AND MINING

30

WIPRO

IT

Scope and importance of the study

RESEARCH OBJECTIVES

Objective: “Comparative analysis of Religare Securities Ltd. online share trading and Religare Securities Ltd. offline share trading."

Sub objectives

  1. To study the procedure, product and services of online and offline share trading.
  2. To know the preference of the factors which are important in online and offline share trading.
  3. To compare the online medium with Offline medium.
  4. To know the trading status of the Religare Securities Ltd. Clients.
  5. To know the service level of the Religare Securities Ltd.

RESEARCH METHOLOGYS

  1. Define the problem.
  2. Planning a research design.
  3. Planning a sample.
  4. Gathering the data.
  5. Processing and analyzing the data.
  6. Formulating conclusions and preparing the report.
  7. Define the new problem.

Problems online share trading As there are couples of good advantages there are also some technical disadvantages. As every coin have two sides.

Disconnection from Internet

- In online share trading there is the possibility that your internet connection may get slow or get stopped, this
may result in disconnection from share market. At such critical times you have to call your executive (from whom you opened your trading
account) and place your order or square off your pending orders.]

Computer Problem

- If your computer stops functioning then this may also result in disconnection from share market at this time also you have
contact your executive.

Other Problem

- Other problems like electricity disconnection. Solution for this is inverter or batter backup.

Data collection

Sources-

  1. Primary Data.
  2. Secondary Data.
  3. Primary Data
  4. Questionnaire.
  5. Secondary Data
  6. Magazines.
  7. Journals.
  8. Websites.

THEROTICAL PROSPECTIVES

RELIGARE

Values that bind

Religare : Company Profile

Religare is a leading Financial Services & Brokerage House with acknowledged industry Leadership in execution and clearing services on Exchange Traded Derivatives and cash market products.

Key elements that place Religare amongst the leading Brokerage Houses and makes it the preferred service provider for value based financial services are:

A Client-driven foundation and strategy committed to client-specific investment needs and objectives.

Integrated and innovative use of Technology enabling clients to trade offline,online and Strategic tie-ups with latest technology partners to facilitate trading access and direct processing across 400 outlets in 160 cities

Client-focused philosophy backed by memberships of all principal Indian Stock and Commodity Exchanges makes Religare a preferred service provider in the Industry for value based services.

Religare confidently steers you through a challenging Financial and Trade Market every moment, whether you are present or not!

Religare Group

  • Religare Securities Ltd.
  • Religare Finevest Ltd.
  • Religare Wealth Management Services.
  • Religare Capital Market Ltd.
  • Religare Finance Ltd.
  • Religare Insurance Holding Co. Ltd.
  • Religare Realty Ltd.
  • Religare Venture Capital Pvt. Ltd.
  • Religare Insurance Broking Ltd.
  • Religare Comodities Ltd.

Religare Affiliation and Distribution Network

Proven and accredited leaders in the Financial Services business, Religare provides you the unique opportunity to trade offline and online while cutting across all geographic barriers.

  • Strategic Tie-ups that provide latest technology for access and processing
  • Trading over 425 locations across 160 cities in India
  • 24 hour access to Account Information via the Net or Electronic File Transfer (FTP) facilities.
  • Membership of all Principal Indian Stock and Commodity Exchanges
  • National Stock Exchange of India Ltd (NSEIL)
  • Bombay Stock Exchange (BSE)
  • Futures & Option Segment of NSEIL & BSE
  • Dubai Gold Commodities Exchange (DGCX)
  • National Commodity & Derivatives Exchange Ltd. (NCDEX)
  • Multi Commodity Exchange (MCX)
  • OTC Exchange of India Ltd (OTCEIL)
  • Depository Participant with NSDL & CDSL
  • Corporate Agents for Life & Non-Life Insurance (both foreign / private and state owned insurance companies)
  • One of the largest distributors of leading Mutual Funds in India

Religare Research Desk Philosophy

“Investing means laying out money today to receive money in real terms after taking inflation into account, tomorrow”

That's because we're realistic, experienced, backed by research and study and most importantly, client-driven.

Empowering the Investor

The Religare Research Desk has one key objective - to empower you completely with Market Knowledge, Analysis and Advisory Services to help you prosper.

Our team provides expert and timely analysis on equity and commodity to help you maximize your trading decisions. We offer value perspectives, suggest strategy, focus on opportunities for investment and growth, and endeavour to reduce risk potential.

  • Trading Ideas
  • Daily Market Strategies
  • Monthly Updates
  • Investment Ideas
  • Trading Calls
  • Commodity Views

Religare as a trading partner

Religare is driven by ethical and dynamic process for wealth creation. Religare Enterprise Limited through Religare Securities Limited, Religare Finevest Limited, Religare Commodities Limited and Religare Insurance Advisory Services Limited provides integrated financial services to its corporate, retail and wealth management clients. Religare operations are managed by highly skilled professionals who subscribe to Religare philosophy and are spread across its country-wide branches.

Offline Service of Religare Se

curities Limited

R-ALLY

RELIGARE's ALLY also known as R-ALLY is a perfect partner for savvy investers. Experience the comfort of our elite dealing rooms where all your trading requirements would be taken care of by experienced, well informed and contemporary dealers. You will also have dedicated relationship managers to take care of your multiple investments needs.

Online Service of Religare Securities Limited

R-ALLY Lite

  • Brouser based plateform
  • No software installation required
  • NSE cash segment, NSE F&O and BSE on single plateform
  • Real-time streaming quotes
  • Multiple watch lists
  • Alerts and triggers
  • Hot key functions
  • Online transfer of funds through multiple banks
  • Access your ledger balances and account information over internet, branch and call centre
  • Trade online and over phone at branch
  • Access to all your accounts through your customer relationship number (CRN)
  • Dedicated Relationship Managers for assisting multiple investment needs

R-ALLY Pro

  • Application based plateform
  • No software installation required
  • NSE cash segment, NSE F&O and BSE on single plateform
  • Real-time streaming quotes
  • Multiple watch lists
  • Alerts and triggers
  • Hot key functions
  • Online transfer of funds through multiple banks
  • Access your ledger balances and account information over internet, branch and call centre <
  • Trade online and over phone at branch
  • Access to all your accounts through your customer relationship number (CRN)
  • Dedicated Relationship Managers for assisting multiple investment needs

How we will make trade easier

Personal assistance

  • Dedicated dealers for facilitating trading and post trade needs
  • Dedicated Relationship Managers for assisting multiple investment needs

Reasearch & Advisory

  • Regular news and updates on market
  • Research services over SMS to keep you abreast
  • Daily and weekly technical reports
  • A complete information report on results and performance of individual companies. Complete reports on various economic sectors and their performance along with analysis of few major companies in that sector
  • Trading calls in Future & Opinion
  • Daily capsule of market indices and index movement, national and international corporate news, bulk trade deals and market gains and losers, information on mutual funds and their performance along with forth coming IPO traker
  • Add-Ons

  • Access to all your accounts through your Customer Relationship Number (CRN)
  • Access your ledger balances and account information over internet, branches and call centre

What is a depository?

A depository can be compared to a bank. A depository holds securities (like shares, debentures, bonds and units) of investors in electronic form. Besides holding securities, a depository also provides services related to transactions in securities.

What are the benefits of depository system?

The benefits of participating in a depository are:

  • immediate transfer of securities;
  • no stamp duty on transfer of securities;
  • elimination of risks associated with physical certificates such as bad delivery, fake securities etc;
  • reduction in paperwork involved in transfer of securities;
  • reduction in transaction cost;
  • nomination facility;
  • change in address recorded with Depository Participant (DP) gets registered with all companies in which investor holds securities electronically, eliminating the need to correspond with each of them separately;
  • transmission of securities is done by DP, eliminating correspondence with companies;
  • convenient method of consolidation of portfolios/accounts;
  • holding investments in equity and debt instruments in a single account.

What is a DP?

As an investor you open a securities account with a DP. DPs are attached to the depositories very much the same way as commercial banks are attached to RBI. All interactions including account opening, dematerialization, transactions, pledge etc are done through the DP.

How do I select a DP? Are all DPs the same?

You can select your DP to open a demat account just like you select a bank for opening a savings account. Some of the important factors for selection of a DP can be:

Convenience:

proximity to the office/residence, business hours.

Comfort:

reputation of the DP, past association, range of services etc. Find out if the DP is in a position to give the specific service you may need.

Cost:

the service charges levied by DP and the service standard.

What should I do when I want to open an account with a DP?

The process of opening an account with a DP is similar to the opening of a bank account. You can approach any DP of your choice and fill up an account opening form. At the time of opening an account, you have tosign an agreement with DP in a National Securities Depository Ltd (NSDL) prescribed standard agreement, which details your rights and duties and those of your DP. All investors have to submit their proof of identity and proof of address along with the prescribed account opening form.

Proof of identity:

your signature and photograph must be authenticated by an existing demat account holder with the same DP or by a bank manager. Alternatively, you can submit a copy of Passport, Voters ID card, Driving license or PAN card with photograph.

Proof of address:

you can submit a copy of Passport, Voters ID card, Driving license, PAN card with photograph, Ration card or Bank passbook as proof of address. You must remember to take original documents to the DP for verification.

Passport-size photographs

Dematerialization:

Dematerialization is the process by which a client can get physical certificates converted into electronic balances maintained in his account with the DP.

The dematerialization system is an alternative to the physical existence of securities. In this system securities are converted into the electronic form and deposited in a depository account in the investors name.

In order to dematerialize certificates, an investor will have to first open an account with a DP and then request for the dematerialization of certificates by filling up a Dematerialization Request Form (DRF), which is available with the DP, and submitting the same along with the physical certificates. The investor has to ensure that before the certificates are handed over tothe DP for demat, they are defaced by marking "Surrendered for Dematerialization" on the face of the certificates.

Features:

  • Holdings in only those securities that are admitted for dematerialization by National Securities Depository Ltd (NSDL) can be dematerialized.
  • Structure of holding in the securities should match with the account structure of the depository account. Now shares in different order of names can also be dematted.
  • If the shares are in the name of X and Y, the same cannot be dematerialized into the account of either X or Y alone. However if the shares are in the name of X first and Y second, and the account is in the name of Y first and X second, then these shares can be dematerialized in this account.
  • Only those holdings that are registered in the name of the account holder can be dematerialized. Physical shares which have not been transferred and are still there with a transfer deed cannot be dematted. Only a few companies have been given the permission to offer Transfer-cum-Demat. The list of these companies can be viewed here.

Can I dematerialized any share certificate?

You can dematerialize only those certificates that are already registered in your name and are in the list of securities admitted for dematerialization at NSDL.
All the scrips included in S&P CNX Nifty and BSE Sensex have already joined NSDL. This list has more than 2,800 companies and is steadily growing.

Rematerialization:

Rematerialization is the process by which a client can get his electronic holdings converted into physical certificates. The client has to submit the dematerialization request to the DP with whom he has an account along with a Remat request form. The physical shares will be posted by the company directly to the clients.

Trades:

For all sales made by clients, the shares will have to be given to the broker, so that the Pay In can be made by the broker to the stock exchange concerned. For that it's essential that the shares be transferred to the account of the broker well before the deadline date.
You must confirm with your broker the settlement date and settlement number and then submit your instructions to your DP. Alsoit's important to give the instructions to your DP as early as possible.

Pledge:

Pledge enables you to obtain loans against your dematerialized shares. So you get liquidity without having to sell your shares.
A highly simplified procedure may be availed of for pledging of securities in the electronic mode. The pledged securities continue tobe reflected in the DP account of the clients (pledgor) but the concerned securities are "blocked" and cannot be used for any transactions. As and when the pledge is to be removed, based on confirmations received from both the pledgor and the pledgee, the blocked securities will be released to "Free Balance" of the account holder.
A very big advantage of using pledges in the electronic mode is that the securities continue to be in your account and therefore all benefits--viz Dividend, Bonus and Rights--accrue to the holder, ie you and not the bank (pledgee).

Corporate benefits:

Corporate benefits are benefits given by a company to its investors. These may be either monetary benefits like dividend, interest etc or non-monetary benefits like bonus, rights etc. NSDL facilitates distribution of corporate benefits. It's important to mention your correct MICR No and attach copy of the cheque leaf with your account opening form. NSDL is planning to distribute all cash corporate benefits to bank accounts directly.

Can my electronic holdings be converted back into certificates?

Yes. If you wish to get back your securities in physical form, all you have to do is to request your DP for Rematerialisation of the same. "Rematerialisation" is the term used for converting electronic holdings back into certificates. Your DP will forward your request to NSDL after verifying that you have the necessary balances. NSDL in turn will intimate the registrar who will print the certificates and dispatch the same to you.

What is the procedure for selling dematerialized securities?

The procedure for selling dematerialized securities in stock exchanges is similar to the procedure for selling physical securities. Instead of delivering physical securities to the broker, you instruct your DP todebit your account with the number of securities sold by you and credit your broker's clearing account. This delivery instruction has to be given to your DP using the delivery instruction booklet received from the DP at the time of opening the account. The procedure for selling securities is given here below:

  • Investor sells securities in any of the stock exchanges linked to NSDL through a broker.
  • Investor gives instruction to DP to debit his account and credit the broker's (clearing member pool) account.
  • Before the pay-in day, investor's broker gives instruction to his DP for delivery to clearing corporation.
  • The broker receives payment from the stock exchange (clearing corporation).
  • The investor receives payment from the broker for the sale in the same manner payment is received for a sale in the physical mode.

What should I do if I want to pledge electronic securities?

The procedure is as follows:

Both you (pledgor) as well as the lender (pledgee) must have depository accounts;

You must initiate the pledge by submitting to your DP the details of the securities to be pledged in a standard format (available with your DP);

The pledgee should confirm the request through his DP;

Once this is done, your securities are pledged.

All financial transactions between the pledgor and the pledgee are handled outside the depository system

Can I freeze my account?

Yes. The depository system provides the facility to freeze the depository accounts for any debits or for both debits and credits. In an account which is "freezed for debits", no debits will be permitted from the account, till the time it is de-freezed. This is the additional security feature for the benefit of the investors.

PRODUCTS IN RELIGARE SECURITIES LIMITED

EQUITY

Equities are shares in a company. It is the certificate of ownership of a corporation. In simple terms, when you invest in a company's stock or buy its shares, you own part of a company. Thus, as a stockholder, you share a portion of the profit the company may make, as well as a portion of the loss a company may take. As the company keeps doing better, your stocks will increase in value and yield higher dividends.

Dividend:

A sum of money, determined by a company's directors, paid to shareholders of a corporation out of its earnings.

Once you enter the Stock market, you will frequently come across terms like Market Capitalization, Small-Cap Stocks, Mid-Cap Stocks and Large-Cap Stocks.

Market Capitalization

Cap" is short for capitalization, the market value of a stock, indicating the size of the stock available.
Calculating a stock's capitalization

Market Capitalization = Market Price of the stock x

The number of the stock's outstanding* shares
(*Outstanding means the shares held by the public)
For example, if Stock A has a Current Market Price of Rs 20 per share, and there are 1,00,000 shares in the hands of public investors, then Stock A has a capitalization of 20,00,000.

Small-Cap Stocks

The stocks of small companies that have the potential to grow rapidly are classified as small-cap stocks. These stocks are the best option for an investor who wishes to generate significant gains in the long run; as long he does not require current dividends and can withstand price volatility. Generally companies that have a market Capitalization in the range of upto 250 Corers are small cap stocks.

Mid-Cap Stocks

Mid-cap stocks are typically stocks of medium-sized companies. These are stocks of well-known companies, recognized as seasoned players in the market. They offer you the twin advantages of acquiring stocks with good growth potential as well as the stability of a larger company. Generally companies that have a market Capitalization in the range of 250-4000 crores are mid cap stocks.

BULL AND BEAR MARKET

The uses of "Bull" and "Bear" to describe markets have been derived from the manner in which each of these animals attacks its opponents. A bull thrusts its horns up intothe air, and a bear swipes its paws down. These actions are metaphors for the movement of a market: if the trend is up, it is considered a Bull market. And if the trend is down, it is considered a Bear market.

The supply and demand for securities largely determine whether the market is in the Bull or Bear phase. Forces like investor psychology, government involvement in the economy and changes in economic activity also drive the market up or down. These combine to make investors bid higher or lower prices for stocks.

DERIVATIVES

A derivative is a financial instrument whose value depends on the values of other underlying variables. As the name suggests it derives its value from an underlying asset. For Ex-a derivative, may be created for a share, or any material object. The most common underlying assets include stocks, bonds, commodities etc.

Sunit buys a futures contract in the scrip "Indraprastha Gas limited". He will make a profit of Rs.500 if the price of Indraprastha Gas Limited rises by Rs 500. If the price remains unchanged Sunit will receive nothing. If the stock price of Indraprastha Gas limited falls by Rs 800 he will lose Rs 800.

Different types of Derivatives?

Derivatives are basically classified into the following:

  • Futures /Forwards

  • Option

    Futures /Forwards

    A futures contract is a type of derivative instrument, or financial contract where two parties agree to transact a set of financial instruments or physical commodities for future delivery at a particular price.

    A forward contract is the simplest mode of a derivative transaction. It is an agreement to buy or sell a specific quantity of an asset at a certain future time for a specified price. Nocash is exchanged when the contract is entered into.

    Index futures are futures contracts where the underlying is a stock index (Nifty or Sensex) and helps a trader to take a view on the market as a whole.

    Lot size refers to the quantity in which an investor in the markets can trade in a derivative of particular scrip. For Ex-Nifty Futures have a lot size of 100 or multiples of 100.

    Each contract entered into has an expiry period. This refers to the period within which the futures contract must be fulfilled. Futures contracts may have durations of 1 month, 2 months or at the most 3 months.

    OPTIONS

    An option is part of a class of securities called derivatives.
    The concept of options can be explained with this example. For instance, when you are planning to buy some property you might have placed a nonrefundable deposit to hold it for a short time while you evaluate other options. That is an example of a type of option.

    Buying a stock option is quite similar. Options are contracts that give the holder the right to buy or sell a fixed amount of a certain stock at a specified price within a specified time. A put option gives the holder the right to sell the security; a call option gives the right to buy the security. However, this type of contract gives the holder the right, but not the obligation to trade stock at a specific price before a specific date.

    Different types of Options

    CALL OPTION

    A call option gives the holder the right to buy the underlying stock at the strike price anytime before the expiration date. Generally Call options increase in value as the value of the underlying instrument increases.

    PUT OPTION

    Put option gives the holder the right to sell shares of the underlying stock at the strike price on or before the expiry date. The put option gains in value as the value of the underlying instrument decreases. A put option is one where one can insure a stock against subsequent price fall. If the value of your stocks goes down, you can exercise your put option and sell it at the price level decided upon earlier.

    MUTUAL FUNDS

    A mutual fund is a common pool of money into which investors with common investment objectives place their contributions that are to be invested, in accordance with the stated objective of the scheme. The investment manager invests the money collected into assets that are defined by the stated objective of the scheme. For example, an Equity fund would invest in Equity and Equity related instruments and a Debt fund would invest in Bonds, Debentures, Gilts etc

    Documents required to open a Demat Account

    All investors have to submit their proof of identity and proof of address along with the prescribed account opening form.

    1.

    Proof of identity

    : You can submit a copy of Passport, Voters ID card, Driving licence or PAN card.

    2.

    Proof of address

    : You can submit a copy of Passport, Voters ID card, Driving licence, PAN card, Ration card or Bank passbook as proof of address. You must remember to take original documents to the DP for verification.

    3.

    Passport-size photograph

    : If you open 3-in-1 account then 3 passport-size photograph is necessary and if you open only demat account and trading account then only twopassport-size photograph is necessary.

    PRICING FOR CLIENTS

    Account Opening Charges:

    Rs.500 for Demat account & trading account

    Payback Opening Charges:

    No payback

    Account Maintenance Charges:

    Rs. 250 p.a.

    Spot Payment:

    Not Avialable

    Exposure:

    10

    times in intraday

    Bank Collaborations:

    All Nationalised & Private Banks

    Data collection

    Data collection

    Sources-

    1). Primary Data.

    2). Secondary Data.

    2. Primary Data

    Questionnaire.

    Secondary Data.

    Magazines.

    Journals.

    Websites.

    DATA ANALYSIS

    AND  INTERPRETATION

    Mode of trading - online & offline

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    mode of trading

    offline

    online

    total

    number of clients

    61

    39

    100

  • The total number of people surveyed were 100, among them 39 were using Online mode and 91 were using Offline mode.

    Online mode is more popular among people because it is considered as more convenient. It helps in increase in the accessibility of the stock market. Online is much better in terms of trading and apart from this it provides stock market to people anywhere. Clients can trade from any place and any one can trade on his/ her behalf.

    The age group of the clients

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    Age of clients

    Total

    below 20

    20 -35 years

    36-50 years

    51-65 years

    66 and above

    Mode of trading

    Off line

    1

    33

    17

    5

    5

    61

    On line

    1

    10

    11

    7

    10

    39

    Total

    2

    43

    28

    12

    15

    100

    From the above Diagram it can be said that the age group which is more using the on line portal are of 20-35, and the another age group is 36-50which can be focused for getting good clients in future.

    In case of the offline trading there are three age groups which are using the off line portal. These are 20-35, 36-50 and 66 above. It has been noticed during the survey that the people who are of 36-50 are not ready to change their mode of trading. Although there has been change in technology but they are laggards. They are very traditional so they are resistant to change the mode of trading. The age group of 66 and above are using the off line mode of trading because they are the old traders. They are having plenty of time in their schedule, so they are utilizing it there sitting with the broker and doing the trading after consulting the Equity Advisor there on.

    EDUCATIONAL QUALIFICATION OF THE CLIENTS

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    Graduate

    Post graduate

    others

    Total

    Mode of Trading

    Off line

    10

    46

    5

    61

    On line

    3

    34

    2

    39

    Total

    13

    80

    7

    100


    Among the people surveyed the most of the people are post graduate. They are having good knowledge about stock market. They are having their own views regarding the stock market.

    The people who are using offline mode of trading are less resistant to change their views regarding stock market. They use instruments like hedging to safeguard themselves from the losses. But in case of people who are trading online are having their own views and are much experienced in stock market. So during the trading they have made few views for stock market and they are stick to it.

    OCCUPATION OF THE CLIENTS

     

    Occupation

    Total

    Employed

    Business

    Professional

    Housewife

    Retired

    Mode of trading

    Off line

    31

    22

    7

    1

    0

    61

    On line

    9

    6

    12

    0

    12

    39

    Total

    40

    28

    19

    1

    12

    100

    Among the offline traders most of the people were employed or having business as their occupation.7 persons were professionals and only one client was housewife.

    Among the online traders 12 persons were professional and 12 persons were retired. They like to trade themselves after watching the stock market. Since there has been revolution in the technology so most of the professionals are using the online mode of trading.

    prefernce for mutual fund

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    Preference for mutual fund

    Most Preferred

    Preferred

    Somewhat Preferred

    Least Preferred

    Not Preferred

    Total

    Mode of trading

    Off line

    19

    30

    9

    3

    0

    61

    On line

    8

    21

    7

    2

    1

    39

    Total

    27

    51

    16

    5

    1

    100

    Among the people who are trading offline 19 people Mostly prefer Mutual fund, 30 people prefer to trade in Mutual Fund, 9 people Somewhat prefer and 3 people give least preference to Mutual funds. There are none of the person who don't prefer at all the Mutual Funds Schemes.

    In case of the people who are trading off line 8 people Mostly prefer Mutual fund, 21 of people prefer to trade in Mutual Fund, 7 people Somewhat prefer and 2 people give least preference to Mutual funds. There is only 1 person who don't prefer at all the Mutual Funds Schemes

    So from the above diagram it can be inferred that Religare Securities Ltd. can attract people in Mutual funds trading too.

    preference for stock market

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    Preference for Stock Market

    Most Preferred

    Preferred

    Somewhat Preferred

    Least Preferred

    Not Preferred

    Total

    Mode of trading

    Offline

    37

    12

    9

    3

    0

    61

    Online

    23

    13

    3

    0

    0

    39

    Total

    60

    25

    12

    3

    0

    100


    Among the people who are trading offline 37 people Mostly prefer Stock Market for trading, 12 people prefer Stock Market for trading, 9 people Somewhat prefer and 3 people give least preference to Stock Market for trading. There is no any person found during survey that doesn't prefer at all the Stock market for trading.

    In case of the people who are trading online 23 people Mostly prefer Stock Market for trading, 13 people prefer to trade in Stock Market , 3 people Somewhat prefer and no any person was found who give least preference or don't prefer at all the Stock market Trading.

    So from the above diagram it can be inferred that Religare Securities Ltd. is having huge opportunity in the market for the people who give more preference tostock market than any other.

    It should launch new schemes for the people and should make them to trade by giving good calls and a large amount of Brokerage can be generated from thm.

    prefernce for Insurance SchemesYour browser may not support display of this image.

    preference for insurance schemes

    Total

    most preferred

    Preferred

    somewhat preferred

    Least preferred

    not preferred

    Mode of Trading

    offline

    3

    6

    15

    30

    7

    61

    online

    9

    5

    14

    11

    0

    39

    Total

    12

    11

    29

    41

    7

    100



    Among the people who are trading offline 3 people Mostly prefer Insurance Schemes to invest, 6 people prefer Insurance Schemes to invest, 15 people Somewhat prefer and 30 people give least preference to Insurance Schemes to invest, and 7 people don't prefer at all the Insurance Schemes There are 7 persons found during survey who don't prefer at all the Insurance Schemes to Invest.

    In case of the people who are trading online 9 people Mostly prefer Insurance Schemes to invest, 5 people prefer to Insurance Schemes to invest, 14 people Somewhat prefer Insurance Schemes to invest and 11 persons found who give least preference. There was no any such person was found who don't prefer at all Insurance Schemes to invest.

    It can be inferred from the above data that the people who are giving somewhat preference toInsurance Schemes for investment can be converted into Share market Traders. Their money can be invested in stock market .

    Preference for fixed deposits

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    preference for fixed deposits

    Total

    most preferred

    preferred

    somewhat preferred

    Least preferred

    not preferred

    Mode of trading

    Offline

    0

    9

    24

    20

    8

    61

    Online

    1

    5

    12

    17

    4

    39

    Total

    1

    14

    36

    37

    12

    100


    Among the people who are trading offline none of them Mostly prefer to keep their money in Fixed Deposits, 9 people prefer to keep their money in Fixed Deposits, 24 people Somewhat prefer and 20 people give least preference to keep their money in Fixed Deposits. There were 8 people don't prefer at all to keep their money in Fixed Deposits.

    In case of the people who are trading online only 1 person Mostly prefer to keep their money in Fixed Deposits., 5 people prefer to keep their money in Fixed Deposits, 12 people Somewhat prefer to keep their money in Fixed Deposits and 17 persons found who give least preference. There were 4 persons who don't prefer at all to keep their money in Fixed Deposits Schemes.

    The people who prefer to keep their money infixed deposits are those who are not able to take risk for investing in the stock market. Among the online traders the people have small amount invested in fixed deposits for their children and Spouse.

    Preference for n.s.c. & post office schemesYour browser may not support display of this image.

     

    Preference for N.S.C. & post office schemes

    Total

    most preferred

    preferred

    Somewhat preferred

    least preferred

    not preferred

    Mode of trading

    Offline

    1

    2

    0

    6

    52

    61

    Online

    0

    0

    1

    5

    33

    39

    Total

    1

    2

    1

    11

    85

    100

    Among the people who are trading offline 1 of them Mostly prefer to keep their money in N.S.C. & Post Office schemes, 2 people prefer tokeep their money in N.S.C. & Post Office schemes, none of them Somewhat prefer and 6 people give least preference to keep their money in N.S.C. & Post Office schemes. There were 52 people don't prefer at all to keep their money in N.S.C. & Post Office schemes.

    In case of the people who are trading online none of them Mostly prefer of prefer to keep their money in N.S.C. & Post Office schemes, 1 person Somewhat prefer to keep their money in Fixed Deposits and 5persons found who give least preference to N.S.C. & Post Office schemes. There were 33ersons who don't prefer at all to keep their money in Fixed Deposits Schemes.

    the amount of trading done by the clients

    Amount of Trading per month

    Total

    Less than 1 lakhs

    1L-9.99L

    10L-19.99L

    20-29.99L

    30L-39.99L

    40L - 49.99L

    50 L and above

    Mode of Trading

    Offline

    9

    21

    19

    5

    5

    1

    1

    61

    Online

    3

    13

    12

    2

    6

    2

    1

    39

    Total

    12

    34

    31

    7

    11

    3

    2

    100


    The effectiveness of HNI team can be seen from the above diagram. Initially Religare Securities ltd. was not having HNI team. The HNI team focuses on the clients who give a turnover of Rs. 30 - 40 lakhs in a month. Although the large amount of people fall in the category of Rs. 1-10 lakhs and Rs. 10-20 lakhs. These people must be motivated for more trading. A large amount of brokerage can be generated from them by rolling their money in the stock market.

    In the offline trading the number of people who are having a turnover of Rs.20- 30 lakhs are more than the off line traders. It is the most suitable category for trading.

    which mode increases the probabilty of high return

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    statements

    no. of respondents

    Offline share trading increases the probability of high return.

    72

    Online share trading increases the probability of high return.

    28

    72 % of people think that the offline share trading increase the probability of high return and 28 % of people think that the online share trading increases the probability of high return.

    experience of clients in share trading

    Less than 1 year

    1 - 5 years

    5 - 10 years

    More than 10 years

    Total

    Mode of Trading

    Offline

    23

    28

    6

    4

    61

    Online

    6

    22

    6

    5

    39

    Total

    29

    50

    12

    9

    100



    Among the people surveyed most of the persons are having 1-5 years of experience, and few of them are new in the share market. There are 4 persons in offline trading and 5 persons in online trading who are having experience of stock market more than 10 years.

    level of Service provided by RELIGARE SECURITIES LTD.

    The Level of services provided by Religare securities Ltd.

    Total

    Very efficient

    Efficient

    Moderately Efficient

    Neither efficient nor inefficient

    Moderately inefficient

    Inefficient

    Very in efficient

    Mode of trading

    Offline

    2

    18

    25

    9

    6

    1

    0

    61

    Online

    1

    2

    15

    11

    9

    0

    1

    39

    Total

    3

    20

    40

    20

    15

    1

    1

    100

    Among the people, who are trading offline have ranked the services of Religare Secutities Ltd. either efficient or moderately efficient. But at the same time most of the people who are trading online have ranked the services of Religare Secutities Ltd. as moderately efficient or neither efficient nor inefficient.

    But one person was found in offline trading who has ranked Religare Secutities Ltd. inefficient. And one person was found in offline trading who has found Religare Secutities Ltd. very inefficient.

    THE PERCEPTION OF CLIENTS REGARDING

    RELATIONSHIP MANAGER

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    Evaluation of relationship manager

    Total

    Very good

    Good

    Can't say

    Bad

    Worst

    Mode of trading

    Offline

    17

    14

    19

    10

    1

    61

    Online

    7

    10

    12

    9

    1

    39

    Total

    24

    24

    31

    19

    2

    100

    In the offline department there was one person found who has ranked the relationship manager as worst. At the same time 17 persons have ranked them as very good and 14 persons as good. It means that they are doing their job very well.19 persons are such people who are not able tocomment any thing for the Relationship manager. 10 people have ranked the relationship manger as bad. Relationship manager should try tobuildup good relations with their clients because, “Customers Are King”

    In the online department, most of the people have ranked the relationship managers as good or they are not able to comment for their services. 3 persons have ranked them bad. Its very good that none of them have ranked them as worst.

    PERCEPTION REGARDING CALL AND TRADE FACILITY

    Evaluation of call and trade facility in

    Total

    very good

    Good

    can't say

    Bad

    worst

    Mode of trading

    Offline

    8

    31

    13

    8

    1

    61

    Online

    1

    14

    16

    8

    0

    39

    Total

    9

    45

    29

    16

    1

    100


    In the online department there was only one person found who has ranked the service of call and trade as worst? At the same time 8 persons have ranked them as very good and 31 persons as good. 13 persons are such people who are not able to comment any thing for the Call and Trade facility. 8 people have ranked the relationship manager as bad.

    In the online department, most of the people have ranked the Call and Trade facility as good or they are not able to comment for their services. 8 persons have ranked them bad. Its very good that none of them have ranked them as worst.

    The problem in the facility of call and trade is the Congestion in the network of Equity advisor. Sometimes the traders face problem of connectivity while trading hours. Although 5 phone lines have been assigned to each equity advisors totalk to them during Trading Hours.

    PERCEPTION FOR MARGIN FUNDING

    Evaluation of margin funding

    Total

    very good

    Good

    Can't say

    Bad

    worst

    Mode of trading

    Offline

    8

    26

    15

    11

    1

    61

    Online

    9

    16

    12

    1

    1

    39

    Total

    17

    42

    27

    12

    2

    100

    In the offline department only 7 persons have ranked the Margin Funding as very good and 26 persons have ranked it as good. 15 persons are such people who are not able to comment any thing for the Margin Funding. 11 people have ranked Margin Funding as bad and only 1 person ranked worst.

    Among the people who are trading online 9 persons have ranked the Margin Funding as very good and 16 persons have ranked it as good. 12 persons are such people who are not able to comment any thing for the brokerage. 2 people have ranked Margin Funding as bad or worst.

    Overall the clients are satisfied with the margin funding services.

    FINDINGS

    During the Research following results were found, these are as follows:

    RECOMMENDATIONS

    CONCLUSION

    LIMITATIONS DURING THE PROJECT

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