Final Religare Report

ICFAI NATIONAL COLLEGE FINAL REPORT ON

E X E C U T I V E T RA I N I N G

Mezzanine Floor,10185-A,Arya Samaj Road,Karol Bagh New Delhi

SUBMITTED TO: BY: MR.SAMEER GARG VIPUL BHATNAGAR (FACULTY GUIDE) (ROLL NO- 8NBSP042) COMPANY GUIDE:INC Center:-Saharanpur

SUBMITTED

MR. VISHAL SHARMA

CERTIFICATE

It is to certify that VIPUL BHATNAGAR, Enrollment no.8NBSP042 a bonafied student of ICFAI National College (Saharanpur) is undergoing his training and prepared his Interim Report under my supervision and guidance and this is a piece of original work and is true to best of my knowledge.

Mr. Sameer Garg (Faculty Guide) INC-NOIDA

ACKNOWLEGEMENT I want to thank Mr. Sameer Garg, our Faculty Guide and a special thanks to Mr. Vishal Sharma, our Company Guide for their kind co-operation & for sharing their experience and knowledge and for giving their invaluable

help

and

support

in

the

completion

of

Executive Training Interim Report successfully.

VIPUL BHATNAGAR

Enroll No.-8NBSP042

CONTENTS ACKNOWLEDGEMENT INTRODUCTION COMPANY PROFILE OBJECTIVES TASKS/TARGET ASSIGNED STRATEGIES ACHIEVEMENTS LIMITATION/PROBLEMS 

LEARNINGS

KEY FINDINGS & ANALYSIS RECOMMENDATION

INTRODUCTION

Executive Training may stretch from the beginning to the end of SIP. During this period, organizations, assigned various tasks to the young managers, which are parts of the day-to-day functioning of the department within the organization. Executive training gives direct exposure to execution and support functions of the department. It gives a flavor of teamwork, organizational culture, team dynamics, result orientation, organizational pressures, complexities in achieving the desired results, etc. Executive training provides good scope for developing necessary managerial skills and positive attitude. We are required to undertake on-the-job assignments along with the day-to-day functions of the company, both at the assistance and the execution level. This helps to gain a deeper understanding of the work, culture, deadlines, pressure etc. of an organization. Executive training involves teamwork, goal orientation and managing interpersonal relationships. Therefore, it helps to develop the qualities required for an Executive / Manager. A good summer internship undertaken with all the seriousness provides an excellent learning opportunity for a student intern and paves the way for pre-placement. The primary functions of the executive training is based on a methodological study, as it required to me to understand equity market, to execute the study I preferred to study about securities market and all the participants in the equity market. Thus, the first part of the project was executed by learning the following in detail: 1. 2. 3. 4. 5. 6. 7.

Securities market in India About stock exchange Company profile About equity Market Participant in Equity Market Service of Religare To do a comparative study of Religare product with other market competitor.

After undergoing the training about the product and operational features I started exploring the product and contacted the prospective customer by way of tally calling, e-mails, corporate presentation, My primary aim was to five better options to the prospective customers by offering them products specialized features & its unique incomparable qualities in the services provided by Religare securities in share trading.

COMPANY PROFILE

RELIGARE Securities Ltd. (RSL) is a wholly owned subsidiary of RELIGARE Financial Services Ltd. (RFSL), a Company promoted by the late Dr. Parvinder Singh, Ex-CMD of Ranbaxy Laboratories Ltd. The primary focus of Religare Securities Ltd. is to cater to services in Capital Market Operations to Institutional Investors. The Company is a member of the National Stock Exchange (NSE) and OTCEI. The growing list of financial institutions with whom RSL is empanelled as approved Broker is a reflection of the high levels of services maintained by the Company. As on date the Company is empanelled with UTI, IDBI, IFCI, SBI, BOI-MF, Punjab National Bank, PNB-MF, Oriental Insurance, GIC, UTI-Offshore, ICICI Can bank MF, Punjab & Sind Bank, Pioneer ITI, SUN F&C, IDBI Principal, Prudential ICICI, ING Baring and J M Mutual Fund. RELIGARE was founded with the vision of providing integrated financial care driven by the relationship of trust. The bouquet of services offered by RELIGARE includes Broking (Stocks and Commodities), Depository Participant Service, Advisory on Mutual Fund Investments and Portfolio Management Services.

RELIGARE is a pioneer in the concept of partnership to reach multiple locations in order to effectively service its large base of individual clients. Besides the reach of RELIGARE, the clients of the company greatly benefit by its strong research capability, which encompasses fundamentals as well as technical knowledge.

GROUP : RELIGARE in recent years has expanded its reach in health care and financial services wherein it has multiple specialty hospital and labs which provide health care services and multiple financial services such as secondary market equity services, portfolio management services, depository services etc. RELIGARE financial services group comprises of Religare Securities Limited, RELIGARE Comdex Limited and RELIGARE Finvest Limited which provide services in Equity, Commodity and Financial Services business & Religare Insurance Advisory Ltd. RELIGARE SECURITIES LIMITED 1.

Member of National Stock Exchange of India and Bombay Stock Exchange of India.

2.

Depository Participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).

3.

A SEBI approved Portfolio Manager.

RSL provides platform to all segments of the investor to leverage the immense opportunity offered by equity investing in India either on their own or through managed funds in Portfolio Management.

The ARN No. of the Religare Securities Ltd. is 33764. The ARN No. is required by to be available with the broker who deals on behalf of investors or sell the mutual funds of the different companies present in the market.

Religare Enterprises Limited Religare Securities Limited

Religare Finvest Limited

•

Equity Broking

•

Lending and Distribution business

•

Online Investment Portal

•

Proposed Custodial business

•

Portfolio Management Services

•

Depository Services Religare Commodities Limited

•

Commodity Broking

Religare Insurance Broking Limited •

Life Insurance

•

General Insurance

•

Reinsurance

Religare Capital Markets Limited

Religare Arts Initiative Limited

•

Investment Banking

•

Business of Art

•

Proposed Institutional Broking

•

Gallery launched - arts-i

Religare Realty Limited •

Religare Venture Capital Limited

In house Real Estate Management Company

•

Religare Hichens Harrison**

Private Equity and Investment Manager Religare Asset Management*

•

Corporate Broking

•

Derivatives Sales

•

Institutional Broking

•

Corporate finance

•

DIRECTORS OF RELIGARE SECURITIES LIMITED Chairman

:

Mr. Harpal Singh

Managing Director

:

Mr. Sunil Godhwani

Director

:

Mr. Vinay Kumar Kaul

Director

:

Mr. Malvinder Mohan Singh

Director

:

Mr. Shivinder Mohan Singh

MISSION To be India's first Multinational providing complete financial services solution across the globe

VISION Providing integrated financial care driven by the relationship of trust and confidence.

PRODUCTS :

Products

Subscription fees

Enrolment Deposit

R-ALLY

NIL

NIL

R-ALLY Lite (Browser Based)

NIL

Rs. 5,000

R-ALLY Pro (Application Based)

Rs. 1,800

NIL

BROKERAGE :INTRADAY:(NEGOTIABLE) DELIVERY :(NEGOTIABLE)

3 paisa (.3%) 30 paisa (.03%)

SERVICES :Equity

Arts Initiative

Commodity

Investment

REL

Banking

Mutual Fund

Wealth Insurance

Advisory Personal Credit

Organization Structure:

Competititors of Religare :There are several financial security companies playing their roles in Indian equity market. But Religare faces competitions from these few companies.

 ICICI Direct.com  Share Khan (SSKI)  Kotak Securities.com  India Bulls  HDFC Securities  5paisa.com  Motital Oswal  IL&FS  Karvy

Objectives of Executive Training

My sip co the RELIGARE SEURITIES LIMITED is a share trading firm and the objective of executive training is to make the public aware of the share trading and the de mat account. At the Religare we were assigned the task of making telecalling, fixing an appointment with the client and to open de mat account and make the client trade so that the company generates its revenue in the form of the brokerage.

 To do a comparative study of Religare product with other market

competitors.

 To create awareness about Religare securities.

 Mapping up potential customers for Religare securities.

 To know about the corporate world’s working environment and to

enhance our potential.

 To convert our theoretical knowledge into practical knowledge.

TARGET/ TASK ASSIGNED To open 24 Demat A/c within 12week worth Rs.500/- each.

As the company actually deals in share broking and for any share trader, having a demat account is must, so we have been assigned the task of opening Demat account of the prospective customers or the customers who are already trading in the share market via another firm such as India bulls,Kotak Securities etc, in favour of Religare Securities Limited, KAROL BAGH Branch, New Delhi. From 30 march, we have been assigned the target of opening 24 Demat Accounts within 12 weeks in the favour of Religare Securities Limited, KAROL BAGH Branch, New Delhi. As our executive training period had started from 23th of March and our Three month period ends on 27th Jun.

•

To create awareness among people about the different products offered by the company in the market through telecalling, canopies, presentations etc.

•

To generate leads for endorsement of deals.

•

To accompany the ‘relationship managers’ on their visits to the prospective client.

STRATEGY ADOPTED TO ACHIEVE TARGETS To achieve a goal successfully one needs to sketch a perfect roadmap or strategy to the destination and also need to follow the path strictly. The strategies applied to achieve the above mentioned

Primary Data:  Data collected by ourselves through personal contacts  Visiting various businessmen in Delhi  Tally Calling is also done with reference to the database maintained by ourselves

Secondary Data:  References given by Relationship Manager  Visiting various websites database is maintained  Search in Delhi telephone Directory  Through Yellow pages data is collected. On the basis of collected data

target clients are approached.

Analysis of performance Vs.target.Reasons for variance, if any

o

Achievements during the executive training are as following:

•

Got the organization’s products knowledge and its features.

•

Understand the equity market and different ways of trading.

•

Have got appropriate knowledge regarding organization’s competitor and their policies.

•

Able to create awareness regarding Religare’s products by giving presentations in the different Government sector banks and other Government offices etc.

•

Able to the mapped the potential clients for the organizations.

•

Got success in opening 36 Demat accounts with Margin Money of 5,20,000 Rs..

•

Got success in opening 2 (BDR).

•

Got the knowledge about the corporate world’s working environments.

•

Able to made a good network that will help in successfully achieving the remaining SIP target.

•

Successfully used the theoretical concepts of the marketing in the practical life for achieving the target.

ACHIVEMENTS

Week No

Target Assigned

Target Achieved

1

0

Orientation

2

2

2

3

2

3

4

2

3

5

2

3

6

2

3

7

2

3

8

2

4

9

2 10

2

3 6

11

2

4

12

2

2

ACHIVEMENTS

 I have opened 36 Demat A/C with the margin money of

Rs.5,20,000.

 I have Opened 2 (BDR), Which will be more beneficial for

Company.

 I Received the ‘Best Weekly performer Award’ in the 9th Week

and 11th Week of my SIP.

 Got Experience about different ways of Trading.

 Got the Organization’s Product knowledge and it’s features.

 Have got appropriate knowledge regarding organization’s competitor and their policies.

 Got the Knowledge about different Finance products and their

potential market.

Problem/Constraints/Limitation s I am little bit slowly in heading towards my target which I suppose is due to the strategy which I am following to find my prospective customers. But I am little bit satisfied by my commitment because I suppose that the clients which I have given to my company is going to provide a lump-sum business as well as reasonable profits in terms of healthy brokerage to my company. But still I suppose there are some limitations which are proving as: Due to volatile in the stock market, new investors do not ready to invest in the market.

 It is difficult to get appointment from the Government offices like Income Tax department as closing time is going on.

 Old investors ready to switch to but own his conditions as these are against the policies of the company.

 People don’t have basic knowledge regarding stock market.



People have traditional thinking regarding investment plan. They are not ready to take risk.

 Due to boom in the property people have invested bulk amount in

the property.



Due to lack of the knowledge of the local brokers many persons have lost their money in the capital market. Now they are not ready for the further investment.

Due to none availability of the proper guidance most of the person take stock market as gambling.

Learning in the Executive Training During this training I have learned the practical aspects of financial market. In my executive training I have got lot of knowledge & exposure from this company . The main point which I learned in this company these are include

In my Executive training I get the exposure of corporate world as well as I learn many more from this company.  In my Executive training I face to many customers so that i find that

how to face the customer in the real world. I read many more regarding client but when I face them I find their nature and their behavior.  I have done many meeting in this new city and I learn the process

to find any address initially when I entered in this city I takes lot of time to find any address but now I get the techniques to search the address.

 Initially when I meet to customers I feel very fear that he can ask any question & I didn't have full knowledge of this organization but know I have full knowledge but I can face any kind of customer.  Our work is not only open demat a/c but also bring margin money

so I got more time to face my client to make good relationship.  I know how does sales effect the whole organization if sales persons

are not doing their work properly organization can't be grow in future.

 During this training I have learned the practical aspects of financial market.

 Attended meetings in which I had to give the demo of the software

of the company along with its installation.

 I also assisted in executing trades from the existing clients so as to

get brokerage for the company.

Learning

We also learned about the document required to open different type of d-met account Individual account •

3 photographs

•

Pan card copy self attested

•

Add. Proof (Electricity Bill, Voter card, Ration card, Driving License., MTNL bill of telephone, Bank Statement).

•

500-Rs. Cheque In favours Religare securities Ltd.

Non individual •

All directors photograph

•

All directors Pan Card photocopy self attested with Company stamp.

•

All directors add proof self attested with company stamp.

•

Company Pan Card attested with Company stamp (auth. Sig.)

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Bank statement of last 6 month till date attested with company stamp (auth. Sig.)

•

Moa & AOA attested with company stamp (auth. Sig.)

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Board of resolution on letter head Equity.

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Board of resolution on letter head DP.

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List of Director on letter head

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Share holding pattern on letter head.

•

Last three years Balance sheet with co. Stamp (auth. Sig).

•

Form 32 with co. Stamp (auth. Sig). (In case director change)

•

Form 18 with co. Stamp (auth. Sig). (In case of add change)

KEY FINDINGS AND ANALYSIS

Preference of Investment

7%

2%

16%

Only shares M utual funds Bonds Derivatives 75%

Interpretation: This shows that although the mutual funds market is on the rise yet, the most favored investment continues to be in the Share Market. So, with a more transparent system, investment in the Stock Market can definitely be increased.

Awareness Of Online Share Trading No 9%

Yes 91%

Interpretation: With the increase in cyber education, the awareness towards online share trading has increased by leaps and bounds. This awareness is expected to increase further with the increase in Internet education.

AWARENESS OF RELIGARE AS A BRAND

43% 57%

YES NO

Interpretation: This pie chart shows that Religare has a reasonable amount of Brand awareness in terms of a premier Retail stock broking company. The company to increase its market share over its competitors should further leverage this brand image.

Awareness of Religare's facilities

17% Yes No 83%

Interpretation: Although there is sufficiently low brand equity among the target audience yet, it is to be noted that the customers are not aware of the facilities provided by the company meaning thereby, that, the company

should concentrate more towards promotional tools and increase its focus on product awareness rather than brand awareness.

Demat Account Market

26%

12%

31% 24%

7%

Religare ICICI Direct Kotak Securities IndiaBulls Others

Interpretation: This shows that even with sufficiently high Brand Equity, Religare ranks only 3rd amongst the Demat account providers. This is probably because of two main reasons:

1.Lack of promotion and unfocussed approach towards Product awareness 2.Non – transparent marketing policies of the company Hence, the company should crystallize its products and should indulge in aggressive marketing and promotion.

Satisfaction level among Customers with current broker

Yes - 92%

No- 8%

Interpretation: This pie chart accentuates the fact that Strategic marketing, today, has gone beyond only meeting Sales targets and generating profit volumes. It shows that all the competitors are striving hard not only to woo the customers but also to make them Brand loyal by generating customer satisfaction.

Frequency of Trading Daily- 9% Weekly- 27% Monthly-53% Yearly-11%

Interpretation: In spite of the huge returns that the share market promises, we see that there is still a dearth of active traders and investors. This is because of the non – transparent structure of the Indian share market and the skepticism of the target audience that is generated by the volatility of the stock market. It requires efficient bureaucratic intervention on the part of the Government.

Percentage of earnings invested in Sharetrading Upto 10%--71% Upto 25%--19% Upto 50%-- 7% Above 50%--3%

Interpretation: This shows that people invest only upto 10% of their earnings in the stock market, again reiterating the volatile and nontransparent structure of the Indian stock market. Hence, effective and efficient steps should be undertaken to woo the customers to invest more in the lucrative stock market.

RECOMMENDATIONS

We suggest following measures which Religare could take so as to take on heavy competition from India bulls , 5 Paisa.com , Kotak Securities, Share khan and ICICI Direct.com etc.

1. To identify regions where promotions are required. Religare lacks visibility in northern region where as it is a well known name in western region. Even then, its promotional campaign focuses on western region where as northern region is still waiting for promotional campaigns. 2. Try to reduce cost, so that benefits can be passed on to customers. Senior managers at Religare keep on telling that it is difficult to reduce cost, because of services we provide. But the fact is, India being a

price sensitive market; people at times go for monetary benefits rather than for long-term non- monetary benefits. 3. If charges can’t be reduced because of costs involved, make the services customized, so that services are provided to only those customers who are willing to pay the price for services they are getting and let the other customers enjoy costs benefits without getting services. 4. Religare should contact with their clients regularly for knowing the problems faced by them. This will help Religare in providing best services to customers. This will result in additional customer base by getting further references from satisfied clients. In context of marketing we cannot continue with present scenario. We have to focus more on advertising and promotions. Since we are not visible in the security industry as like other stock broking house. Our area of concern is to make the Religare brand strong enough and provide customers a platform for a complete financial solution. We are here to serve both retail and institutional investors. Since a large portion of our clients are retail investors, so our job is to make our investors knowledgeable enough to invest in stock market. It is a great opportunity for us to gain market faith and edge over our competitors. On 6 July 2007, Sensex had crossed the all time high of 15000 points. This is only due to foreign and local investors. The figure itself shows that there is an significant interest of investors to invest in stock market. Majority of the population doesn’t have a clear idea regarding stock market. We can create a platform for our retail investors to have an experience of equities market. We can conduct educational programs/trading sessions for online trading in different locations of the city. This would definitely attract investors and increase faith on our company. Till now no broking house has initiated this effort, so we will get the advantage of first mover. Our dedicated Relationship Managers could make a presentation in front of the investors and there could be Q&A’s in the later part of the session to clarify the doubts inherited in the mind of clients. The risk associated with the equities market can be reduced in the mind of the customer only when you can manage the money of the investors in the right way. The ROI (return on investment) in equities market is huge and could play a vital point for deal clincher. Many people who are not conversant with online trading have many apprehensions regarding security and other matters. Authentication, reliability and integrity of the stock broking house must be maintained. Suggestions we would like to give:    

At our hoarding board in different bus stands, through which we are marketing doesn’t have any toll free number. Make some flexible norms regarding brokerage structure. RM must be provided with sustainable authority so that they can negotiate at any level. Process of filling the rally form should be easy because there are so many signatures that sometimes irritate the customers. IPO form filling up should be online (in rally).

        

Software charges should be one time & that should be adjustable against brokerage. Its name might be start by name of Ranbaxy as ICICI direct & SBI life cashing the name of their brand name. D-mat a/c opening charges can be reduced to increase the client base. Problem in downloading the diet Odin software on different windows. Small investors should also be dealt properly because if they will not invest much more, at least they can work as viral marketer. As others we are also lagging behind in the after sale service. We have to make aggressive marketing through print media so that we can reach to the smallest place of the county. We should give more focus to FIIs & INSTITUTIONAL INVESMENT. Arbitraging plays a big role in stock market so we should provide a platform for arbitrage.

QUESTIONNAIRE

Q1. In which of these Financial Instruments do you invest into?

Shares

Mutual Funds

Bonds

Derivatives Q2. Are you aware of online Share trading? Yes

No

Q3. Heard about Religare? Yes

No

Q4. Do you know about the facilities provided by Religare? Yes

No

Q5. With which company do you have your DEMAT account?

Religare

ICICI Direct

Kotak Mahindra

India

Bulls Others (please specify) __________

Q6. Are you currently satisfied with your Share trading company? Yes

No

Q7. How often do you trade?

Daily

Weekly

Monthly

Yearly Q8. What percentage of your earnings do you invest in share trading?

Up to 10%

Up to 25%

Up to 50%

Above 50% Q9. What more facilities do you think you require with your DEMAT account? ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Additional Information (optional) Name: Age: Sex: Phone No: Occupation:

Male

Female

CONCLUSION We can conclude that main purpose of the SIP is to provide the practical exposure of the corporate world to the students. It is during these 12-Week of exposure to the industry that students can impress the host organization with their hard work, sincerity, knowledge and ethics. That can leads to the Pre – placement offer. SIP would also be a great learning experience for the young managers as it gives chances to the students for

using their theoretical concepts into the practical life. SIP helps to create team spirit among the students. Also helps to develop the qualities required for the manager. Till now we have achieved some of the target assigned to us by the organization and we are trying our best for achieving the remaining target.

T H A N K YO U

VIPUL BHATNAGAR