SUMMER PROJECT REPORT On

INVESTMENT SERVICES AND INVESTMENT PROCESS OF UNICON INVESTMENT SOLUTION

At

Under the guidance o Mr! MADURI"A MALI# S$ARAT S$ARMA Sales Manager Management Modinagar
SU%MITTED %"&

Dr! Faculty, SRM-IST,

A'$AR $USSAIN #$AN Reg! No! ( )*+,-+./

0M!%!A! .++,(.+1+2

SRM 3 INSTITUTE OF SCIENCE AND TEC$NOLO4"5 MODINA4AR

STUDENT DECLARATION I AZHAR HUSSAIN KHAN student of MBA here by declared that the research report entitled INVESTMENT SERVICES AND INVESTMENT PROCESS OF UNICON INVESTMENT SOLUTION is completed and submitted under the guidance of Mr.Tarun Kumar (Sr.Re a!"#n$%"& Mana'er( is my original work. The imperial finding in this report is based on the data collected by me. I have not submitted this project report to S M!IST or any other "niversity for the purpose of compliance of any re#uirement of any e$amination or degree.

DATE) PLACE)

AZHAR HUSSAIN KHAN M*A III SEM ROLL NO. +,-./-01

ACKNO2LED3EMENT At the very beginning% I wish to render my deep sense of gratitude with special thanks and due regard to Mr. TARUN KUMAR (Sr. Re a!"#n$%"& Mana'er4 Un"5#n In6e$!men! S# u!"#n( whom I re#uired the privilege of working. &is invaluable guidance and thoughtful consideration had been the key motivating factor throughout my project% which enabled me to complete my project so efficiently and effectively.

I wish to e$press my respectable thanks and gratitude to Dr. SHARAT SHARMA (Fa5u !7 #8 M.*.A.( theoretical knowledge about the subject.

I feel immense pleasure to offer my thanks to faculty members% who co!operated in analysis of data and helped me to understand some behavioral aspects of consumers. I am very thankful to my friends who directly and indirectly helped me in collection of data and material related to the research topic.

AZHAR HUSSAIN KHAN

C%a&!er 9 : '.

($ecutive
5

C%a&!er 9 0

C%a&!er 9 1
1. 2.

8uestionnaire Bibliography

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E=ECUTIVE SUMMAR>
To get initial success in this field is very difficult. Although the business generation becomes easier with time as they serve more people who then get added up in the loyal clientage. Thus time and service are two most factors to get in this field. Also the corporate remains a very important segment which gets business in bulk but retail cannot be ignored which makes your business ticking. -ustomer remains in the pivotal position. The financial sector is in a process of rapid transformation. eforms are continuing as part of the overall structural reforms aimed at improving the productivity and efficiency of the economy. The role of an integrated financial infrastructure is to stimulate and sustain economic growth.

FINANCIAL SECTOR The financial sector is in a process of rapid transformation. eforms are continuing as part of the overall structural reforms aimed at improving the productivity and efficiency of the economy. The role of an integrated financial infrastructure is to stimulate and sustain economic growth. The "S9 *3 billion Indian financial sector has grown at around '/ per cent and has displayed stability for the last several years% even when other markets in the Asian region were facing a crisis. This stability was ensured through the resilience that has been built into the system over time. The financial sector has kept pace with the growing needs of corporate and other borrowers. Banks% capital market participants and insurers have developed a wide range of products and services to suit varied customer re#uirements. The eserve Bank of India : BI; has

successfully introduced a regime where interest rates are more in line with market forces. +inancial institutions have combated the reduction in interest rates and pressure on their margins by constantly innovating and targeting attractive consumer segments. Banks and trade financiers have also played an important role in promoting foreign trade of the country.

*an?$ The Indian banking system has a large geographic and functional coverage. 0resently the total asset si<e of the Indian banking sector is "S9 *25 billion while the total deposits amount to "S9 **5 billion with a branch network e$ceeding ..%555 branches across the country. evenues of the banking sector have grown at . per cent -A= over the past few years to reach a si<e of "S9 '/ billion. >hile commercial banks cater to short and medium term financing re#uirements% national level and state level financial institutions meet longer!term re#uirements. This distinction is getting blurred with commercial banks e$tending project finance. The total disbursements of the financial institutions in *55' were "S9 ', billion. Banking today has transformed into a technology intensive and customer friendly model with a focus on convenience. The sector is set to witness the emergence of financial supermarkets in the form of universal banks providing a suite of services from retail to corporate banking and industrial lending to investment banking. >hile corporate banking is clearly the largest segment% personal financial services is the highest growth segment. The recent favourable government policies for enhancing limits of foreign investments to ,6 per cent among other key initiatives have encouraged such

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activity. 7arger banks will be able to mobilise sufficient capital to finance asset e$pansion and fund investments in technology.

Ca&"!a Mar?e! The Indian capital markets have witnessed a transformation over the last decade. India is now placed among the mature markets of the world. ?ey progressive initiatives in recent years include@ A The depository and share dematerialisation systems that have enhanced the efficiency of the transaction cycle A eplacing the fle$ible% but often e$ploited% forward trading mechanism with

rolling settlement% to bring about transparency A The infotech!driven Bational Stock ($change :BS(; with a national presence :for the benefit of investors across locations; and other initiatives to enhance the #uality of financial disclosures. A -orporatisation of stock e$changes.

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A The Securities and ($change Board of India :S(BI; has effectively been functioning as an independent regulator with statutory powers. A Indian capital markets have rewarded +oreign Institutional Investors :+IIs; with attractive valuations and increasing returns. A The Mumbai Stock ($change continues to be the premier e$change in the country with an increase in market capitalisation from "S9 ,5 billion in '665!'66' to "S9 *5) billion in '666!*555. The stock e$change has about .%555 listed companies and an average daily volume of about a billion dollars A Many new instruments have been introduced in the markets% including inde$ futures% inde$ options% derivatives and options and futures in select stocks.

In$uran5e >ith the opening of the market% foreign and private Indian players are keen to convert untapped market potential into opportunities by providing tailor!made products@ A The presence of a host of new players in the sector has resulted in a shift in approach and the launch of innovative products% services and value!added benefits.

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+oreign majors have entered the country and announced joint ventures in both life and non!life areas. Major foreign players include Bew Cork 7ife% Aviva% Tokio Marine% Allian<% Standard 7ife% 7ombard =eneral% AI=% AM0 and Sun 7ife among others. A >ith competition% the erstwhile state sector companies have become aggressive in terms of product offerings% marketing and distribution. A The Insurance egulatory and 4evelopment Authority :I 4A; has played a

proactive role as a regulator and a facilitator in the sectorDs development. A The si<e of the market presents immense opportunities to new players with only *5 per cent of the countryDs insurable population currently insured. A The state sector 7ife Insurance -orporation :7I-;% the largest life insurer in *555% sold close to *5 million new policies with a turnover of "S9 / billion. A The gross premia for the insurance sector was "S9 ') billion for *55'!5*. A There are four public sector and nine private sector insurance companies operating in generalEnon!life insurance business with a premium income of over "S9 *./3 billion.

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A The marketDs potential has been estimated to have a premium income of "S9 35 billion with a potential si<e of over )55 million people. The =eneral Insurance -orporation :=I-; :which covers the non!life sector; had a total premium income of "S9 * billion in *55'!5*. This has the potential to reach "S9 6 billion in the ne$t five years.

Ven!ure Ca&"!a Technology and knowledge have been and continue to drive the global economy. =iven the inherent strength by way of its human capital% technical skills% cost competitive workforce% research and entrepreneurship% India is positioned for rapid economic growth in a sustainable manner. To realise the potential% there is a need for risk finance and venture capital :F-; funding to leverage innovation% promote technology and harness knowledge based ideas. A The Indian venture capital sector has been active despite facing a challenging e$ternal environment in *55' and a competitive market scenario. A There were ), F-+s and * +oreign F-+s registered with S(BI in March *553.

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A According to a survey conducted by Thomson +inancial and 0rime 4atabase% India ranked as the third most active venture capital market in Asia 0acific :e$cluding Gapan;. It recorded ''/ deals in *55' with average investment per deal amounting to "S9 2.6 million. /2 F-+s invested "S9 653 million in '5' Indian companies during *55'. A 4isbursements for *553 are e$pected to be "S9 * billion and are estimated to reach "S9 '5 billion by *556. A There is an increased interest in India@ 25 F- funds operate in India with the total assets under management worth about "S9 . billion. A The amount has grown nearly twenty fold in the past five years. Most F-s believe that *553!56 will be driven by a relatively stable economy and new initiatives that will boost the e!commerce sector% particularly on!line trading and e! banking sectors.

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INDUSTR> PROFILE
A. Or"'"n an@ De6e #&men! #8 !%e "n@u$!r7

The Bombay Stock ($change :BS(; is known as the oldest e$change in Asia. It traces its history to the '3/5s% when stockbrokers would gather under banyan trees in front of MumbaiDs Town &all. The location of these meetings changed many times% as the number of brokers constantly increased. The group eventually moved to 4alal Street in '32, and in '32/ became an official organi<ation known as HThe Bative Share I Stock Brokers AssociationD. In '6/.% the BS( became the first stock e$change to be recogni<ed by the Indian =overnment under the Securities -ontracts egulation Act. The Bombay Stock ($change developed the BS( Sense$ in '63.% giving the BS( a means to measure overall performance of the e$change. In *555 the BS( used this inde$ to open its derivatives market% trading Sense$ futures contracts. The development of Sense$ options along with e#uity derivatives followed in *55' and *553% e$panding the BS(Ds trading platform. &istorically an open!cry floor trading e$change% the Bombay Stock ($change switched to an electronic trading system in '66/. It took the e$change only fifty days to make this transition.

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-apital market reforms in India and the launch of the Securities and ($change Board of India :S(BI; accelerated the integration of the second Indian stock e$change called the Bational Stock ($change :BS(; in '66*. After a few years of operations% the BS( has become the largest stock e$change in India. Three segments of the BS( trading platform were established one after another. The >holesale 4ebt Market :>4M; commenced operations in Gune '66, and the -apital Market :-M; segment was opened at the end of '66,. +inally% the +utures and 1ptions segment began operating in *555. Today the BS( takes the ',th position in the top ,5 futures e$changes in the world. In '66.% the Bational Stock ($change of India launched SI0 -BJ Bifty and -BJ Gunior Indices that make up '55 most li#uid stocks in India. -BJ Bifty is a diversified inde$ of /5 stocks from */ different economy sectors. The Indices are owned and managed by India Inde$ Services and 0roducts 7td :IIS7; that has a consulting and licensing agreement with Standard I 0oorDs.

In '663% the Bational Stock ($change of India launched its web!site and was the first e$change in India that started trading stock on the Internet in *555. The BS( has also proved its leadership in the Indian financial market by gaining many

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awards such as HBest IT "sage AwardD by -omputer Society in India :in '66. and '662; and -&I0 >eb Award by -&I0 maga<ine :'666;. The Na!"#na S!#5? EA5%an'e of India was promoted by leading +inancial institutions at the behest of the =overnment of India% and was incorporated in Bovember '66* as a ta$!paying company. In April '66)% it was recogni<ed as a stock e$change under the Securities -ontracts : egulation; Act% '6/.. BS( commenced operations in the >holesale 4ebt Market :>4M; segment in Gune '66,. The -apital Market :(#uities; segment of the BS( commenced operations in Bovember '66,% while operations in the 4erivatives segment commenced in Gune *555. Since the early '6/5s till the early '665s% Indian policy makers had been nourishing the goal of Socialist pattern of society. They had been following the development planning strategy of the former Soviet ussia in a mi$ed economic

framework. +rom Guly '66'% in the face of an unprecedented foreign e$change crisis% Indian economy started e$periencing an IM+!>orld Bank dictated regime of liberalisation. 1ne aspect of this is financial liberalisation. There is a move towards privatisation of nationalised banks K these banks are selling their shares in the stock market.

Transnational banks are encouraged to operate in the Indian banking sector. Attempts are made to attract foreign direct investment in different sectors. There is an increasing entry of foreign portfolio capital due to stock market liberalisation. 0eople are encouraged to invest in stocks through income ta$ benefits and abolition of capital gains ta$. There is a move to develop a national pension fund which will be invested in different stocks to get returns out of which pension will be provided to retired people. It is e$pected that boosting up of stock market will accelerate the process of capital accumulation and growth. Stock market development has been an important part of financial liberalisation in the less developed countries :74-s;. In the pro!liberalisation circle% stock market is assigned to play an important role in the capitalist development of 74-s. There are many studies supporting the positive link between stock market development and growth. 7et us mention some of the recent studies. 1ne important study was undertaken by 7evine and Lervos :'663;. Their cross!country study found that the 4evelopment of banks and stock markets has a positive effect on growth. In another study 7evine :*55); argued that although theory provides ambiguous relationship between stock market li#uidity and economic growth% the cross!country data for ,6 countries over the period '62.!6) suggest a strong and

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positive relationship :see also 7evine% *55';. &enry :*555; studied a sample of '' 74-s and observed that stock market liberalisations lead to private investment boom. ecently% Bekaert et al :*55/; analysed data of a large number of countries and observed that the stock market liberalisation Hleads to an appro$imate ' M increase in annual real per capita =40 growthD. There are some economists who are sceptical. 7ong time back ?eynes :'6).; compared the stock market with casino and commented@ Hwhen the capital development of a country becomes the by!product of the activities of a casino% the job is likely to be ill!doneD. eferring to the study of >orld Bank :'66); Singh :'662; pointed out that stock markets have played little role in the post!war industrialisation of Gapan% ?orea and Taiwan. &e argued that the recent move towards stock market liberalisation is Hunlikely to help in achieving #uicker industrialisation and faster long!term economic growthD in most of the 74-s. In this perspective this study e$amines the nature of relationship between stock market and growth through capital accumulation in India.

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3r#B!% an@ &re$en! $!a!u$ #8 !%e "n@u$!r7 The ever!growing and fast!maturing NIndia MarketN is a lucrative business destination for developed countries. >ith 2!3M of =40 growth% huge analytical% young and (nglish speaking work force the NpullN for opportunities are luring. The bandwidth of NIndia MarketN is enviably wide and very deep. NMarkets in IndiaN are well protected by legal guidelines and efficient administrators. >ith a liberal and proactive government at the center the road ahead for NMarkets of IndiaN is very rosy. NMarket IndiaN has witnessed e$ponential growth over past one and half decade. 7iberal and transparent financial policies has effected free!in!flow of +II and as a result of which NIndia MarketN has grown to a colossal monster in the international market. +oreseeing sure and substantial returns on investments : 1I; companies are pro! actively listing on the stock market inde$es. =overnment agencies once much hated for red tape and bribes has shed its image. 0rofessionalism is their new mantra. 0ublic (nterprises like I1-% 1B=-% B&(7% BT0-% SAI7% MTB7% B0-7% &0-7 and =AI7% SBI% 7I-% &industan Antibiotics 7imited% Air India etc. to name a few% are giving 0rivate Indian companies a good run for their money. 0rivate giants like eliance

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Industries 7imited% Infosys% Tata% Birla -orporation% Get Airways%

anba$y%

Biocon% Bajaj Auto% I-I-I are breaking their own records every financial years.

Fu!ure #8 !%e "n@u$!r7 The stock market is booming in spite of the low agriculture output. The monsoon is good in an overall sense but still the #uestion remains who takes the creditO The answer is the karma of the people. I appreciate the Indian politicians and the industrialists who being pawns of destiny are doing things positive and productive. India% as a country is running a very good period and the position of planets in the transit are giving wonderful results. 7ess than one percent of population own stocks and less than '555 individuals control the market% the majority being the +IIS% the promoters of the company. The credit should go to media for making stock market headlines. The #uestion many people in the market ask@ >ill the bull run continueO >hat heights we can reachO +irst of all% mark my words Indian bourses in the future will be one of the best investments in the world. There will be a time when it can even reach )555 points

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in the nifty. India will begin one of the best dasas of the Sun% which will work in its favour. So before *556 Indian bourses should see an all time high. Bow this bull run will continue. A A A There can be some correction in the BS( sense$ in the 2/55 points level. The market will hover between the .555! 2555 till mid august. There will be huge fluctuations.

Investors and new entrants to the market to cool down a bit and come well below 2555. In any case if you are long terms players then step!in and buy now and forget for another '5 years. Cou will make a killing in the Indian markets. Most of the tech companies and the main inde$ will do well but slightly in the lower side of e$pectations.

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AN OVERVIE2 OF FINANCIAL SERVICES Since '665Ds% there has been an upsurge in the financial services provided by various banks and financial institutions. (fficiency of emerging financial system largely depends upon the #uality and variety of financialP services provided by the banking and non!banking financial companies. The term F"nan5"a Ser6"5e$ can be defined as% Qactivities% benefits and satisfactions% connected with sale of money% that offer to users and customers% financial related valueR. Suppliers of financial services include the following types of institutions@ Banks and financial Institutions. &ouse building societies. Insurances companies. -redit card issuer companies. Investment trust and Mutual funds. Stock e$changes. 7easing companies. "nit trusts. +inance -ompanies% and so on.

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+inancial service organi<ations render services to industrial enterprises and ultimate consumer markets. This can be further subdivided to include =overnmentE public sectorE private sector% the commercial sector% industry and international markets. >ithin the financial services industry the main sectors are banks% financial institutions and non!banking financial companies. C%ara5!er"$!"5$ #8 8"nan5"a $er6"5e$) The financial have the following characteristics. In!an'"C e) An organi<ation engaged in providing financial services is largely dependent on the feedback from the public as to effectiveness% #uality and attractiveness of the services rendered. D"re5! $a e) 4irect sale is the only possible channel of distribution. There are no middlemen in between. In order to insure that services are available at the right time and at the right place% simultaneous production and distribution of financial services is undertaken by the service organi<ations. He!er#'ene"!7. In order to cater a variety financial and related needs of

different customers in different areas% financial service organi<ation have to offer a wide range of products and services.

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F u5!ua!"#n "n @eman@) The demand for certain categories of financial services e.g.% life insuranceP do fluctuate significantly% according to the level of general economic activity. This factor puts e$tra pressures on the roles and functions of marketing in insurance organi<ations. Pr#De5! 5u$!#mer$ "n!ere$! ) The responsibility of any financial services

organi<ation to protect consumerDs interest is important not just in banking and insurance% but also in other sectors of the financial services. LaC#ur "n!en$"6e. 0ersonali<ed service versus automation% in fact% is an important issue in financial services. The financial services sector is highly 7abour intensive. It leads to increase in the costs of production and conse#uently affects the price of financial product. 3e#'ra&%"5a @"$&er$"#n. +inancial services must have both apple and wider

application. To insure this% the service providing organi<ations must have massive branch network so that international% national and local customers enjoy benefits of convenience. La5? #8 $&e5"a "@en!"!7. -ustomers usually approach a nearby branch of bank or financial institution% because it is convenient to them. As the competing products offered by various service organi<ations are similar% the emphasis is more on the

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HpackageD then the product. The package consists of branch location% staff% services% reputation% advertising and new services offered from time to time. In8#rma!"#n Ca$e@. +inancial services industry is an information!based

industry. It involves creation% dissemination% and use of information. Information is an essential component in the production of financial services. -ost of processing information is #uite relevant in the profitable production of financial services. ReEu"re Eua "!7 LaC#ur. +inancial services re#uire huge amounts of high

#uality 7abour to deal with information and communication with the market. The types of 7abour rage from workers performing simple tasks to those undertaking comple$ analysis and negotiation re#uire years of training and e$perience. K"n@$ #8 8"nan5"a $er6"5e$) +inancial services provided by various financial institutions% commercial banks and merchant bankers can be broadly classified into * categories@ (:( (0( A$$e! Ca$e@ F Fun@ Ca$e@ $er6"5e$. Fee Ca$e@ F A@6"$#r7 $er6"5e$.

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The important fund based services include: (#uipment 7easing E+inance. &ire! 0urchase and -onsumer -redit. Bill 4iscounting. Fenture capital. &ousing +inance. Insurance Services. +actoring etc. The fee based/ advisory services include: Issue Management. 0ortfolio Management. -orporate -ounseling. 7oan Syndication. Merger and Ac#uisition. -apital estructuring. -redit ating. Stock Broking and so on.

INSURANCE IN INDIA The insurance sector in India has come a full circle from being an open competitive market to nationali<ation and back to a liberali<ed market again. Tracing the developments in the Indian insurance sector reveals the ).5!degree turn witnessed over a period of almost two centuries. A Cr"e8 %"$!#r7 #8 !%e In$uran5e $e5!#r The business of life insurance in India in its e$isting form started in India in the year '3'3 with the establishment of the 1riental 7ife Insurance -ompany in -alcutta. Some of the important milestones in the life insurance business in India are@ :G:0) The Indian 7ife Assurance -ompanies Act enacted as the first statute to regulate the life insurance business. :G0.) The Indian Insurance -ompanies Act enacted to enable the government to collect statistical information about both life and non!life insurance businesses. :G+.) (arlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

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:G,<) *,/ Indian and foreign insurers and provident societies taken over by the central government and nationali<ed. 7I- formed by an Act of 0arliament% vi<. 7I- Act% :G,<4 with a capital contribution of s. / crore from the =overnment of India.

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3enera In$uran5e The =eneral insurance business in India% on the other hand% can trace its roots to the Triton Insurance -ompany 7td.% the first general insurance company established in the year '3/5 in -alcutta by the British. Some of the important milestones in the general insurance business in India are@ :G-1) The Indian Mercantile Insurance 7td. set up% the first company to transact all classes of general insurance business. :G,1) =eneral Insurance -ouncil% a wing of the Insurance Association of India% frames a code of conduct for ensuring fair conduct and sound business practices. :G<.) The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory -ommittee set up. :G10) The =eneral Insurance Business :Bationali<ation; Act% '62* nationali<ed the general insurance business in India with effect from 'st Ganuary '62). '52 insurers amalgamated and grouped into four companies vi<. the Bational Insurance -ompany 7td.% the Bew India Assurance -ompany 7td.% the 1riental Insurance -ompany 7td. and the "nited India Insurance -ompany 7td. =I- incorporated as a company.

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Insurance sector reforms In '66)% Malhotra -ommittee% headed by former +inance Secretary and BI =overnor . B. Malhotra% was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at H5rea!"n' a m#re e88"5"en! an@ 5#m&e!"!"6e 8"nan5"a $7$!em suitable for the re#uirements of the economy keeping in mind the structural changes currently underway and recogni<ing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reformsSR In '66,% the committee submitted the report and some of the key recommendations included@ i) Structure T =overnment stake in the insurance -ompanies to be brought down to /5M T=overnment should take over the holdings of =I- and its subsidiaries so that these subsidiaries can act as independent corporations TAll the insurance companies should be given greater freedom to operate

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ii) Competition T0rivate -ompanies with a minimum paid up capital of s.'bn should be allowed to enter the industry TBo -ompany should deal in both 7ife and =eneral Insurance through a single entity T+oreign companies may be allowed to enter the industry in collaboration with the domestic companies T0ostal 7ife Insurance should be allowed to operate in the rural market T1nly one State 7evel 7ife Insurance -ompany should be allowed to operate in each state iii) Regulatory Body TThe Insurance Act should be changed TAn Insurance egulatory body should be set up T-ontroller of Insurance :-urrently a part from the +inance Ministry; should be made independent

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iv) Investments TMandatory Investments of 7I- 7ife +und in government securities to be reduced from 2/M to /5M T=I- and its subsidiaries are not to hold more than /M in any company :There current holdings to be brought down to this level over a period of time; v) Customer Service T7I- should pay interest on delays in payments beyond )5 days TInsurance companies must be encouraged to set up unit linked pension plans T-omputeri<ation of operations and updating of technology to be carried out in the insurance industry. The committee emphasi<ed that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. But at the same time% the committee felt the need to e$ercise caution as any failure on the part of new players could ruin the public confidence in the industry.

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T%e In$uran5e Re'u a!#r7 an@ De6e #&men! Au!%#r"!7 (IRDA( eforms in the Insurance sector were initiated with the passage of the I 4A Bill in 0arliament in 4ecember '666. The I 4A since its incorporation as a statutory body in April *555 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. The other decisions taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the I 4ADs online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products% which are e$pected to be introduced by early ne$t year. Since being set up as an independent statutory body the I 4A has put in a framework of globally compatible regulations. In the private sector '* life insurance and . general insurance companies have been registered.

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MAJOR DEVELOPMENTS DURIN3 THE >EAR The year *553!56 witnessed the commercial banks becoming aggressive players in the home loans market and a dramatic fall in interest rates across all maturities. This fall in interest rates was driven by the decreasing bank rate and the increased competition with in the banks themselves and between the Banks and &+-s. There was a growing emphasis on the adjustable rate loans due to the decreasing interest rate scenario. In presenting the "nion Budget for *553!56 the &onDble finance minister announced that Bational &ousing Bank would launch a Mortgage -redit =uarantee Scheme% which would be provided to all housing loans thereby fully protecting lenders against default. Towards this end the Asian 4evelopment Bank :A4B; approved an investment of up to "S9'5 million (#uivalent in Bovember *553 to help pioneer the first mortgage guarantee company for India. Mortgage financing through the India Mortgage =uarantee -ompany :IM=-; will help narrow the housing shortfall. The India Mortgage =uarantee -ompany will improve the efficiency of housing finance and protect mortgage lenders such as banks and housing finance -ompanies in cases of borrower default.

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T%e 5rea!"#n #8 IM3C B" ) A =enerate a greater volume of mortgage lending in the Indian market A 7ower down payment re#uirements to as low as /M A Broaden the eligibility for mortgages% and A ($tend mortgage repayment periods by up to */ years These changes will% in turn% support capital market development by promoting securiti<ation and increasing home ownership. The incremental direct disbursement market share for the years *55'!5* and *553!56 shows that the &+-s have lost significant market share to the Banks. 1rgani<ed as a public limited company% IM=- is sponsored by the Bational &ousing Bank :B&B; of India and the -anadian Mortgage and &ousing -orporation. 1ther main shareholders are the International +inance -orporation% and A4B. The total project cost is estimated at "S9,5 million in paid!up capital. +inishing touches are being given to IM=-% which is e$pected to formally come in to e$istence in September of this year. The schemes from IM=- are e$pected to be launched by Ganuary D5, >ith the enactment of The Securitisation and econstruction of +inancial Assets and (nforcement of Security Interest Act *553

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:The Securitisation Act;% banks have been empowered to attach assets of the defaulters without intervention of lengthy and time consuming court procedures. This would help the banks for speedier foreclosure of home loan accounts in default. B&B is also operational <ing the foreclosure laws% which will enable the &+-s to foreclose the defaulting account and apply to the recovery officer for sale of mortgaged property. (asier foreclosure laws coupled with the proposed mortgage credit guarantee scheme of the B&B are e$pected to release nonperforming funds of &+-s for lending. 0roducts and Services The housing finance industry is getting increasingly commodities. -ompetition within the sector is ensuring that in case of inade#uate credit appraisal or recovery systems. The defense strategies for managing increasing default rates fall into three basic categories@ borrower strength% collateral strength% lender techni#ues and various forms of insurance. The first line of defense against loss is making good loan decisionsP the second is managing the asset effectively% with risk sharing entities coming last. -redit risk insurance is only activated after the lender has done everything possible to avoid a loss on the loan.

-redit risk management in the Indian conte$t means the housing finance company has to develop certain in!houseElocal standards for measurement of a borrowersD ability and willingness to repay the loan for the long term% apply those standards% measure the performance and continually make adjustments to the standards based upon results. 1perations risk management means establishing the internal capacity to make good credit decisions :reduce risk of loss;% while at the same time managing the assets so that costs are minimi<ed. >ith the e$ception of &4+-% banks and other housing finance companies have little e$perience in credit and operational risk and management in the housing finance sector. In this conte$t the proposed Mortgage =uarantee -ompany :M=-; could have a significant influence on the housing finance market provided if the M=- is able to offer reasonable risk pricing for credit and default risk. >ith M=- in place offering attractive credit risk mitigation% the housing finance could see many more new players offering home loans with the market becoming more competitive. There is a lot of optimism at the B&B on the growth prospects of the mortgage market and the e$pectations are also running high on their ability

3!

to streamline mortgage legislative environmentP this could further bolster the market growth and lower the cost of mortgages. Asset liability mismatch increases the interest rate and li#uidity risk profile of the &+-s and Banks. The tenure of housing loan has consistently increased from / years in the past to '/!*5 years at present% however the asset remains in the books of the lender for 3!'5 years. Banks have the ability to largely mitigate this risk due to access to diversified resources and lending options. The banking sector% every year% gets around s ,55! ,/5 billion in savings and demandEcurrent account

deposits out of which around 2/!35 percent can be considered as core float and is largely long term in nature resulting in banks being largely protected from asset liability mismatch risk. &owever differences in the maturity profiles of assets and liabilities continue to be of major concern for &+-Ds. In future% the ability to foreclose defaulting mortgage assets will become a key competency for profitability in housing finance market. &+-s and Banks are increasingly looking at smaller towns for growth. Some &+-s are e$pected to follow a new business model of becoming the originator of loans% and thereafter securitising to one of the larger players. As a result% these players will book the revenues :processing fees; upfront and thereafter

3"

Transfer the assets to a larger player :commercial bank or general public; in the form of portfolio sell out or a MBS. &owever% only &+-s with the ability to raise good #uality assets and having ade#uate distribution channels are likely to survive the competition.

4#

MUTUAL FUNDS) Mutual funds are companies that pool funds from a large number of investors and invest them on their behalf for a financial return by buying% holding and selling securities. +unds managed by institutional investors are huge and growing rapidly% particularly as part of the resolution of pension pressures in various parts of the world. =lobal Assets under Management :A"M; rose . per cent to "S 9 )3.* trillion in the first half of *55)% according to -erulli AssociatesN latest =lobal "pdate report. -erulli predicts the global compound annual growth rate for the industry to be 3 per cent between *553 and *556.

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INDIAN MUTUAL FUND INDUSTR> The history of Indian mutual fund industry can be distinctly divided into two phases ! the period before liberali<ation when only public sector players e$isted with one dominant player "nit Trust of India and the post!liberali<ation era where the industry was opened up to private players.

"nit Trust of India :"TI; was established in '6.) and launched its legendary first scheme N"S!.,N in '6.,. "TI witnessed a slow and steady growth over seventies and eighties and by end of '633 it had an A"M of s. .2%555 million. +rom '632% non!"TI% public sector mutual funds were allowed and a series of mutual fund companies were set up by public sector banks and financial institutions. At the end of '66)% the overall A"M of mutual fund industry was s. ,25%55, million.

The mutual fund industry was opened up for private participation '66) and a new era was ushered in% paving the way for an unprecedented choice of products and services to Indian investors. 4etailed guidelines were established and the mutual fund industry :e$cept "TI; came under the regulation of Securities ($change Board of India :S(BI;. Many reputed foreign mutual funds such as Templeton%

42

Alliance% 0rudential group etc. set up operations in India. As at the end of Ganuary *55)% there were )) mutual funds with total assets of s. '%*'3%5/5 million. In +ebruary *55)% the "nit Trust of India Act '6.) was repealed and "TI was broken into two separate entities. 1ne is the Specified "ndertaking of the "nit Trust of India% still under the control of =overnment of India with A"M of s. *63%)/5 million as at the end of Ganuary *55). The second is the "TI Mutual +und 7td% sponsored by SBI% 0BB% B1B and 7I-. It is registered with S(BI and functions under the Mutual +und egulations. As at the end of 1ctober )'% *55)% there were totally )' funds in India% with assets under management of about s. '%*.2%*.5 million.

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T (B4S IB MA ?(TIB= 1+ M"T"A7 +"B4S IB IB4IA The changing marketing trends in the mutual fund industry in India can be easily linked and traced to its history of growth. The changes in marketing strategies can be characteri<ed by , stages which have evolved along with the growth and evolution of the industry.

Product ocus +or the first three decades of the industry% from the setting up of "TI till the entry of private sector players% the only focus of the marketing strategy was different product offerings. "TI and various other public sector mutual funds focused on introducing an array of products falling in different categories. The categori<ation was primarily based on two factors@ one was the way the schemes were traded and the other through different composition of debt and e#uity securities in the scheme.

By the !ay Schemes !ere traded: UO&en;en@e@ S5%eme$ IC #$e;en@e@ S5%eme$

In an open!ended scheme there are no limits on the total si<e of the corpus. Investors are permitted to enter and e$it the open!ended scheme at any point of

44

time at a price that is linked to the net asset value :BAF;. In case of close!ended schemes% the total si<e of the corpus is limited by the si<e of the initial offer. The entry and e$it of investors is possible by only trading on the stock e$changes. 4ue to li#uidity constraints posed by close!ended funds% they were soon rendered obsolete and most of the prevailing schemes today are open!ended schemes.

By Composition of "ebt and #$uity in the Scheme) U 3r#B!% S5%eme$ IIn5#me S5%eme$ I*a an5e@ S5%eme$ IM#ne7 Mar?e! S5%eme$

The products were also differentiated by the composition of e#uity and debt in various schemes. =rowth schemes invest predominantly in e#uities whereas Income schemes invest only in fi$ed income debt securities. Balanced schemes try to derive the benefits of both e#uity and debt by investing in both. Money market schemes invest in short term li#uid securities like money market instruments so that they serve as appropriate products for investing short term funds. There were other niche schemes to fulfill specific needs% such as Ta$ Saving Schemes% Sector Specific Schemes% Inde$ Schemes :which are passively invested in a benchmark Inde$; and so on.In the 0roduct +ocus stage% the aim of the mutual

45

fund companies was to introduce a wide variety of products and due to oligopolistic competition. Customer %!nership ocus Mutual fund companies began to segment their target customers and position their various products based on the target segment they proposed to address. The target segment was broadly divided into institutional segment and individual investor segment. The institutional segment consisted of treasury departments of -orporate% Trusts etc and suitable products such as Institutional Income schemes and Money Market schemes were targeted at them. The individual investor was in turn divided into various segments such as Coung +amilies with small or no children% Middle! aged 0eople saving for retirement and etired 0eople looking for steady income.

Suitable products such as =rowth and Balanced schemes for young families and Income schemes for retired people were marketed. By proper segmentation and by targeting the right product to the right customer% Mutual +und companies hoped to win the confidence of their customers and NownN them for a lifetime.

46

 Speciali&ed Product ' Service ocus

If one observes the trends in the recent past% -ompanies have been taking the above customer focus further by designing and launching speciali<ed products and services. As awareness levels of individual investors go up% focus is on identifying oneNs investment needs depending on oneNs financial goals% risk taking ability and time hori<on. Investors chose companies% which help them in the above through speciali<ed products and services. +or e$ample% a common financial goal is to save and invest for meeting the education needs of children. A number of mutual funds such as 0ru!I-I-I Mutual +und and "TI Mutual +und have launched products that are designed to serve this specific need. A similar such need is planning for a comfortable retirement.

N#n *an?"n' F"nan5"a C#m&an"e$ Bon!Banking +inancial -ompanies :BB+-s; are a set of financial service companies that are #uite uni#ue to India in terms of their si<e and the range of services provided by them. The services provided by BB+-s range from retail service such as loans% leasing and hire purchase financing% brokerage and distribution servicesP to bill discounting and syndication services to corporate customers. Till early '665s% when BB+-s were at their peak% most retail customers would approach an BB+- rather than a bank for all their financial service needs. &owever% since its peak in the mid!'665s when public deposits held by BB+-s increased to 6./ per cent of bank deposits% this sector saw a steep decline. Aggregate public deposits of BB+-s as a percentage of bank deposits came down to './ per cent by March *55) . Till '665s% BB+-s constituted a significant part of the Indian financial services industry and complemented the services provided by a bank. They were a heterogeneous group of intermediaries of varying si<e and provided a range of services. They were characteri<ed by their ability to provide niche financial services and due to their relative organi<ational fle$ibilityP they were often able to provide tailor!made services relatively faster than banks and financial institutions.

4!

This enabled them to build up a wide!ranging clientele from small borrowers to establish corporate. Based on the principal activity carried out by the company% BB+-s were classified by BI under five main categories ! (#uipment leasing company :(7;% &ire 0urchase finance company :&0;% Investment company :I-;% 7oan company :7-; and esiduary non!banking company : BB-s ! large companies not coming under any one particular category;. BB+-s achieved their <enith in early '665s. Their accelerated e$pansion in 65s was driven by the opportunities created by the process of financial liberali<ation. &owever% their rapid growth resulted in unhealthy practices and certain disconcerting developments. In response to this% BI considerably tightened its supervisory and regulatory framework over BB+-s in '663. Some of the new measures of &ire purchase finance% mostly consisting of retail funding of cars% commercial vehicles and consumer durables were the primary activity% followed by loans and inter!corporate deposits.

4"

COMPAN> PROFILE
UNICON INVESTMENT SOLUTIONS "BI-1B is a financial services company which has emerged as a one!stop investment solutions provider. It was founded in *55, by two visionary and flamboyant entrepreneurs% Mr. =ajendra Bagpal and Mr. am M. =upta% who possess e$pertise in the field of +inance. The company is head#uartered in Bew 4elhi% and has its -orporate office in Mumbai with regional offices in ?olkata% -hennai% &yderabad and Boida "BI-1B is a professionally managed company% lead by a team with outstanding managerial acumen and cumulative e$perience of more than *55 years in the financial markets. The company is supported by more than )/55 "niconians and has an e$tensive network of over '55 branches% .55 plus business partner locations I */55 remisers providing it with a national footprint. >ith a customer base of over *55%555% the "BI-1B =roup has an eye for the intricate financial needs of its clients and caters to both their short term and long term financial needs through a comprehensive bou#uet of investment services. These services range from offline I online trading in e#uity% commodities and currency derivatives to debt markets to corporate finance and portfolio management services. The company has a si<able presence in the distribution of

5#

)rd party financial products like mutual funds% insurance products and property broking. It also provides e$pert Advisory on 7ife Insurance% =eneral Insurance% Mutual +unds and I01Ds. The distribution network is backed by in!house back office support to provide prompt and efficient customer service The (#uity broking arm K "BI-1B Securities 0vt. 7td offers personali<ed premium services on the BS(% BS( I 4erivatives market. The -ommodity broking arm "nicon -ommodities 0vt. 7td offers services in -ommodity trading on B-4(J and M-J. The "BI-1B group also has a 0-= division providing investments solutions for &igh Bet >orth Individuals. The -orporate Advisory Services arm K "nicon -apital Services :0; 7td offers entire gamut of Investment Banking services to corporates. "BI-1B can boast of some of the most respected names in the 0rivate (#uity space like Se#uoia -apital and Be$us India -apital as its share holders.

51

M"$$"#n J V"$"#n M"$$"#n ) To create long term value by empowering individual investors through superior financial services supported by culture based on highest level of teamwork% efficiency and integrity.

V"$"#n ) To provide the most useful and ethical Investment Solutions ! guided by values driven approach to growth% client service and employee development.

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MANA3EMENT TEAM Mr. 3aDen@ra Na'&a +ounder I -(1 Mr. Ram M 3u&!a -o!+ounder I 0resident Mr. >.P. Naran' &ead ! +i$ed Income =roup Mr. San@ee& Ar#ra -hief 1perating 1fficer Mr. V"?a$ Ma an -hief +inancial 1fficer% &ead K 4istribution Mr. Tr"na@% K"ran Bational &ead:(!Broking; Mr. SuC%a$% Na'&a 4irector ! Strategic 0lanning I 4istribution M$. AnDa " Mu?%"Da -hief -ompliance 1fficer

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Mr. V"Da7 C%#&ra Bational &ead :Business Alliances; Mr. Anura' Na7ar -hief Technology 1fficer Mr. A$%"$% Ku?reDa &ead &BI -lient elations M$. Dee&a M#%ame@ &ead !& I Training Mr. San@ee& Ma%aDan &ead :(#uity Broking!1ffline

54

"nicon Tie up with various insurance companies@ '. Tata AI= life insurance *. SBI life insurance ). Ma$ new Cork life insurance ,. eliance

/. Birla sun life .. 7ife insurance corporation of india 2. ?otak Mahindra 3. Met life
".

I-I-I prudential

55

PRODUCT
EKUIT> Un"5#nP u$

Browser based trading terminal that can be accessed by a uni#ue I4 and password. This facility is available to all our online customers the moment they get registered with us.

Fea!ure$)

Trading at BS(%BS( and 4erivatives on single screen. Add multiple scrips on the market watch. =reater e$posure for trading on the available margin. -ommon window for display of market watch and order e$ecution. eal time updating of e$posure and portfolio while trading. 1ffline order placement facility.

56

Stop!loss feature. -ompetitive Brokerages. Banking integration with I-I-I Bank% &4+- Bank I A$is Bank. 0ro$y link to enable trading behind firewalls. Un"5#nSB"8! Application based terminal for active traders. It provides better speed% greater analytical features I priority access to elationship Managers. Fea!ure$)

Trading at BS(%BS( and 4erivatives on single screen. Add any number of scrips in the Market >atch. Tick by tick live updation of Intraday chart. =reater e$posure for trading on the margin available -ommon window for market watch and order e$ecution. ?ey board driven short cuts for punching orders #uickly.

eal time updation of e$posure and portfolio. +acility to customi<e any number of portfolios I watch lists. Market depth% i.e. Best / bids and offers% updated live for all scripts. +acility to cancel all pending orders with a single click. Instant trade confirmations. Banking integration with I-I-I Bank% &4+- Bank I A$is Bank%I Bank of India%I -orporation Bank% I ?arnataka Bank% I 1riental bank of -ommerce% I South Indian Bank% I Fijay Bank and Ces Bank. Stop!loss feature.

5!

C#mm#@"!7 Un"5#n offers a uni#ue feature of a single screen trading platform in M-J and B-4(J."nicon offers both 1ffline I 1nline trading platforms. Cou can >alk in or place your orders through telephone at any of our branch locations 1nline -ommodity Internet trading 0latform through "ni+le$. 7ive Market >atch for commodity market :B-4(J% M-J; in one screen. Add any number of scrips in the Market >atch. Tick by tick live updation of Intraday chart. =reater e$posure for trading on the margin available -ommon window for market watch and order e$ecution. ?ey board driven short cuts for punching orders #uickly. eal time updation of e$posure and portfolio. +acility to customi<e any number of portfolios I watchlists. Market depth% i.e. Best / bids and offers% updated live for all scripts. +acility to cancel all pending orders with a single click. Instant trade confirmations. Stop!loss feature.

5"

De&#$"!#r7 Un"5#n De&#$"!#r7 Ser6"5e$ offers demateriali<ation services as a participant in -entral 4epository Services 7imited :-4S7;% through its 4epository operations. The company believes in efficient and cost!effective and integrated service support to its brokerage business. "nicon Securities 0rivate 7imited% as a depository participant% will offer depository accounts for individual investors as well as corporates which will enable them to transact in the demateriali<ed segment% without any hassles.

4epository offer a safe% convenient way to hold securities as compared to holding securities in paper form. 1ur service provides an integrated single platform for all our clients ensuring a risk free% efficient and prompt depository process.

Fa5" "!"e$ O88ere@ C7 Un"5#n V 4e!materiali<ation@

6#

Cou can submit your physical shares at the "nicon branch for demateriali<ation into electronic form.

V e!materiali<ation@ Cou can also re#uest for e!materiali<ation which enables you to convert the demateriali<ed shares into physical form. V Transfer@ Inter and intra depository services are available through which you can transfer shares. V I01@ Cou can apply for I01 using your demat account details and on allotment the securities are transferred directly to your demat account. V -orporate Actions@ >hile holding your stock in demat account% in case you are eligible for any bonus and rights issues the allotment would be transferred to your demat account. V (asi@

61

Cou can view your demat account over the Internet and avail a host of services. This facility empowers our clients to view% download% print updated holdings with respective valuations. IPO At "nicon you can invest in the 0rimary markets :Initial 0ublic 1fferings; online without going through the hassles of filling up any I01 application forms or any other paperwork.

>e shall make sure that you do not miss the opportunity to subscribeEinvest in a good I01 issue by providing you an online I01 application form% transfer of funds online through secured payment =ateways of leading banks like I-I-I% &4+-% AJIS bank.

In addition to the above we shall provide you with the In!4epth analysis of the I01 issues which shall be hitting the Indian Markets in near future% I01 -alendar% analysis on the recent I01 listings% prospectus% offer documents and other I01 research reports so as to help you take an informed decision to invest in the I01 issues.

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1nline I01 facility is open to all our registered clients at no cost whatsoever. All you need is the following to subscribe online to the I01 issues@

A trading account with "nicon A 4emat account with "nicon An access to the net banking facility with the Banks through which "nicon has operational =ateway facility :I-I-I% &4+- and AJIS Bank;. Cou must have signed a 0ower of Attorney :01A; agreement for applying in I01Ds online.

63

Mu!ua Fun@ Un"5#n 0rovides e$pert advice to its clients for their investments in e#uity I debt markets through Mutual +unds.

1ur e$perts advice you the best investment solutions that suit you and help you to reach your financial goals. They help you ascertain your risk profile I guide you with the right product mi$ which reduce your ta$ liability% increase your savings I enhance your wealth. >hether you have a conservative% medium or aggressive investment risk appetite% our e$perts would guide you to build a portfolio to optimi<e the return of interest. C a$$"8"5a!"#n #8 mu!ua 8un@) '. By structure 1pen!ended scheme -losed!ended scheme Interval schemes *. By investment objective =rowth schemes

64

Income schemes Balanced schemes Money market schemes ). By 1ther Schemes Ta$ saving schemes Special schemes Inde$ Schemes Sector specific schemes

65

In$uran5e Un"5#n offers all products of =eneral Insurance under one umbrella. "nicon comprises of a team of distinguished professionals from insurance% finance and other management disciplines who have vast business I managerial e$perience.

"nicon team evaluates the clientNs business environment and studies the risk profile. based on the results of these evaluations% "nicon team then suggests the most cost effective % integrated insurance package that is perfectly suited to the clientNs risk profile.

"nicon has a nationwide network of branches all over India% e#uipped with top #uality infrastructure facilities% to provide you prompt I efficient service.

L"8e In$uran5e

"nicon offers you a 0eace of Mind by offering various life insurance plans for your uni#ue I specific needs. 1ur philosophy is that for every financial problem% there is a solution also. And we are here to give you complete financial solutions.

66

At the same time we offer you very 0rompt I eliable 0olicy related service for enduring relationship.

They offer a very wide range of products to fulfill your particular re#uirements. Cou can always have an access to our 3) Branch 1ffices situated at prime locations of the city% or you can call our elationship Manager to guide on your Investments.

+ollowing is the glimpse of 7ife Insurance 0lans@

0rotection 0lans Investment 0lans -hild 0lans etirementE0ension 0lans Saving 0lans B I 0lans &ealth 0lans

In6e$!men! *an?"n' O6er6"eB The Investment Banking arm of "nicon -apital Services :0; 7td. caters to the funding re#uirements of corporates. 1ur wide e$perience and market knowledge as a leading securities firm ensures that clientsD re#uirements are met at optimum cost. By constantly improving our knowledge capital and remaining focused on client needs% we aim to create significant value for our clients by helping them e$ecute the right capitali<ation strategy. >e also intend to initiate merchant banking services :-apital Markets +undraising; in the short term :Merchant Banking 7icense pending; O88er"n'$ Pr"6a!e EEu"!7 (PE( S7n@"5a!"#n

6!

They speciali<e in the syndication of the private e#uity for the Indian companies in high!growth markets on their capitali<ationEre!capitali<ation strategies% which helps them to achieve their growth targets. 1ur team of professionals ensures complete confidentiality% strong focus on implementation and #uick turnaround time. Access to key decision makers at 0( funds gives us an edge in optimal structuring and efficient closure of transactions. They service their clients through various stages of the 0( deal namely collateral preparation% investor short listing% commercial term sheet% due diligence and final closure. Mer'er$ J A5Eu"$"!"#n$ (MJA( A@6"$#r7 They provide both buy!side and sell!side advisory services as part of their MIA advisory offering. They advise clients during the entire transaction process right from target identification to deal closure. They have an e$perienced and highly #ualified team with more than ,5W man!years of e$perience which speciali<es in identification and short listing of potential targets% strategic planning of an ac#uisition and arranging capital for the transaction% if needed. DeC! S7n@"5a!"#n 1ur offerings include@

6"

0roject +inance E Term 7oans for ($pansion ! Arranging 7ong!term loans for setting up new projects from +inancial Institutions and Banks

($ternal -ommercial Borrowings :(-Bs; ! Arranging 7IB1 !linked loans +oreign -urrency -onvertible Bonds :+--B;!Arranging +--B 7oans >orking -apital +acilities ! Arranging fund!based and non!fund based limits for clients from Banks at competitive rates

Trade +inance ! Arrangement of trade finance :BuyerNs E SupplierDs -redit; Inter!-orporate 4eposits K Borrowing and 0lacement

O*JECTIVES OF THE STUD>

To find the market potential and market penetration of "BI-1B IBF(STM(BT S17"TI1B product offerings in Bew delhi.

To collect the real time information about preference level of customers using 4emat account and their inclination towards various other brokerage firms e.g. Indiabulls% Sharekhan% Indiainfoline% eligare% Alankit % "nicon.

To e$pand the market penetration of "BI-1B IBF(STM(BT S17"TI1B. To provide pricing strategy of competitors to fight cut throat competition. To increase the product awareness of "BI-1B IBF(STM(BT S17"TI1B as single window shop for investment solutions

RESEARCH METHODOLO3>
Re$ear5% @e$"'n an@ me!%#@# #'7 It was important to collect detailed information on various aspects for effective analysis. As QMarketing today is becoming more of a battle based on information based society companies with superior information enjoys a competitive advantage. Me!%#@# #'7 A@#&!e@ The information was collected through person interview and interview was conducted through the mode of #uestionnaire. Ana 7$"$ #8 Da!a Da!a 5# e5!"#n The data collection was collected through primary as well as secondary source. PRIMAR> DATA ) Primary data was collected from '// respondents using a schedule of #uestion and a survey was conducted. The tabular and graphical data was Microsoft e$cel.

SECONDAR> DATA ) Secondary data was collected mainly from internet %printed journals on the capital markets of India %newspaper articles and books written on the Indian stock markets.

SAMPLIN3) Judgment% non!random sampling was used. espondents were re#uest to

help with the schedule at their offices% homes or at the "BI-1B IBF(STM(BT S17"TI1B office.

DATA ANAL>SIS

$%T% %&%'(SIS
1. )re*erence o* in+estment

FI,4.5.1 Result o* )re*erence o* in+estment

Inter)retation-T.is data s.o/s t.at t.e mutual *und mar0et is on t.e rise yet,so t.e most *a+ored in+estment continues to 1e in t.e s.are mar0et.so /it. t.e more trans)arent system,in+estment in t.e mar0et can de*initely 1e increased.

a. Awareness of unicon facilities

2#2 &o !#2 (es

Fig4.5.4 Awareness of unicon facilities

Result of

Interpretation:although there is sufficiently high brand equity among the

target audience yet,it is to be noted that the consumer are not aware of the facilities provided by company meaning thereby company should concentrate more towards promotional tools and increase it focus on product awareness rather than brand awareness.

.!A6arene77 o unicon in8e7t9ent 7o:ution7

as a 1rand Fig -!*!. Re7u:t + A6arene77 o unicon a7 a ;rand

Inter)retation- T.is gra). c.art s.o/s t.at unicon .as a

reasona1le amount o* 1rand a/areness in terms o* a in+estment com)any.t.is 1rand image s.ould 1e *urt.er le+eraged 1y t.e com)any to increase its mar0et s.are o+er its com)etitors.

ABarene$$ #n On "ne S%are Tra@"n'

F"'/.,.0 Re$u ! #8 ABarene$$ #8 On "ne S%are Tra@"n'

In!er&re!a!"#n@ >ith the increase in cyber education% the awareness towards online share trading has increased by leaps and bounds. This awareness is e$pected to increase further with the increase in Internet education.
1.

ABarene$$ #8 UNICON INVESTMENT SOLUTION In6e$! $mar! a$ a *ran@

F"'/.,.+ Re$u ! #8 ABarene$$ #8 Re "an5e m#ne7 a$ a *ran@

In!er&re!a!"#n) This pie!chart shows that reliance money has a reasonable amount of Brand awareness in terms of a premier etail stock broking company. This

brand image should be further leveraged by the company to increase its market share over its competitors.

0. Sa!"$8a5!"#n Le6e am#n' Cu$!#mer$ B"!% 5urren! Cr#?er

F"'/.,., Re$u ! #8 $a!"$8a5!"#n e6e am#n' 5u$!#mer$ B"!% 5urren! Cr#?er In!er&re!a!"#n@ This pie!chart corroborate 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.

"

FreEuen57 #8 Tra@"n'

F"'/.,.< Re$u ! #8 FreEuen57 #8 Tra@"n'

In!er&re!a!"#n@ Inspite 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 K 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 re#uires efficient bureaucratic intervention on the part of the =overnment.

!#

+. Per5en!a'e #8 earn"n'$ "n6e$!e@ "n S%are Tra@"n'

F"'/.,.1 Re$u ! #8 &er5en!a'e #8 earn"n' "n6e$!e@ "n $%are !ra@"n'

In!er&re!a!"#n@ This shows that people invest only upto '5M of their earnings in the stock market% again reiterating the volatile and non!transparent structure of the Indian stock market. &ence% effective and efficient steps should be undertaken to woo the customers to invest more in the lucrative stock market.

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CONCLUSIONS To get initial success in this field is very difficult. Although the business generation becomes easier with time as we serve more people who then get added up in the loyal clientage. Thus time and service are two most factors to get in this field. Also the corporate remains a very important segment which gets business in bulk but retail cannot be ignored which makes your business ticking. -ustomer remains in the pivotal position. Based on the findings of our project we would like to suggest the following@! '. 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.
2.

Investment is having too many financial products right from 4emat account to =eneral 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.

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). >hile 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 e#uity trading as gambling. Thus a mutual fund awareness program can help to increase the penetration of mutual funds in the market. ,. IBF(STSMA T should declare in black ink that they will charge just ' paisa per transaction. 0eople tend to think that there must be some hidden charges. /. s6/5 account opening charges are too high when targeting a corporate so the company should be fle$ible on this amount. .. IBF(STSMA T should provide periodic training for updating the product knowledge of various financial advisors. 2. -ompany should have a scheme of rewards and recognition to employees and the field persons to boost their motivation.

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KE> ISSUES AND CONCLUSIONS Based on the above S>1T analysis and study of the available data I have come to the following conclusions@ HU3E POTENTIAL@ '. All though relatively new entrants in the market% IBF(STSMA T is slowly but surely gaining a strong hold because it is finally able to grasp the investment climate in 4elhi. Secondly the branch managers at all the branches are very knowledgeable with a lot of e$perience in the financial markets so under their leadership can definitely e$pand its base *. The entire workforce consists of mostly youngsters% which means they can be encouraged and motivated to do good work because they have a long way to go and most of them are eager to climb the ladder. ). ight now eliance is at its nascent stage and will surely grab the major market under its belt very soon like in other fields.

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Hu'e "n6e$!men!$ !a?"n' & a5e@ a. The Stock Market has been very buoyant until now especially in the past ) years. This particular trend is very favorable because a soaring S(BS(J means higher returns% which encourages the investors to invest their money in the market. Although in the past ) months the market has shown very unpredictable trend and has already lost over '555 points. b. So in order to make the best the only thing re#uired is to recruit more field staff who should be trained in a proper way to get better results. c. In case of insurance% it re#uires push selling because people always associate it with emergencies and unpleasant situations like death and they donDt want to think about such situation let alone prepare for them% which means it re#uires a lot of conviction on part of the e$ecutives.

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Lar'e un!a&&e@ mar?e!@ A 0eople have just opened up to the idea of "7I0s because till now they knew

only two kinds of insurance plans% endowment and term plans so the concept of high returns with protection is very new to them and slowly and slowly these are becoming popular so there is a huge market waiting to be tapped. A In the past few years there has been a tremendous inflow of funds in the

Indian market which has lead to the sky rocketing S(BS(J. In fact there has been a tremendous response from the investors not only in shares but mutual funds as well. The s/255-r infused in the market through the &SB- IBF(STSMA T (#uity mutual +unds is an e$ample of the growing trust of investors who earlier shied from such investments due to stock market fiascos like the &arshad Mehta scam or the "S., disaster in which investors lost huge amounts of money as well as their trust in financial instruments. A >ith the +4I limits being rela$ed% a lot of avenues will open up in the

insurance sector and insurance companies are e$pected to come up with new plans with a great deal of customi<ation and fle$ibility.

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RECOMMENDATIONS
The company should effectively focus on advertising.

The company should make more aware to the customer about their investment process.

Company must provide full information to their employee about sector and there product and services in which its deals.

Company basically deals in customer relationships it must provide more and more training and development programme to their relationship manager.

Company must focus on the need and wants of the customer as well as after sales services, to make the customer more loyal.

Company must give reliable and full information to their customer about their product and services, and also there benefits.

Company should take care of their employee by giving them cash incentive or taking those people abroad who have achieve their target or make a largevolume of sales. nd also give catered meals to staff that work long hours or those working during peak hours.

!astly taking the feedback from customer so as to better tune its services with the customer needs.

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LIMITATIONS L"m"!a!"#n$ an@ C#n$!ra"n!$

T"me C#n$!ra"n!$@ Time is that factor which cannot be hold by anyone% ones it goes never comes back. The researcher found lack of time and done a precise in!dept study and bring out the available data and information.

Re$#ur5e C#n$!ra"n!$) (arlier there was not that much researches had been conduct on this topic% so the researcher find it difficult to group the information and get the best output.

As the researcher had only used the secondary data the lack or impropriety in the secondary data will also present in the research project

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APPENDI= KUESTIONNAIRE K:. In B%"5% #8 !%e$e F"nan5"a In$!rumen!$ @# 7#u "n6e$! "n!#L Shares Mutual +unds Bonds 4erivatives

K0. Are 7#u aBare #8 #n "ne S%are !ra@"n'L Ces Bo

K+. Hear@ aC#u! UNICON INVESTMENT SOLUTION INVESTSMARTL Ces Bo

K/. D# 7#u ?n#B aC#u! !%e 8a5" "!"e$ &r#6"@e@ C7 UNICON INVESTMENT SOLUTION INVESTSMARTL Ces Bo

K/. D# 7#u ?n#B aC#u! !%e 8a5" "!"e$ &r#6"@e@ C7 UNICON INVESTMENT SOLUTION INVESRTSMARTL Ces Bo

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K,. 2"!% B%"5% 5#m&an7 @# 7#u %a6e 7#ur DEMAT a55#un!L eliance money I-I-I 4irect "BI-1B India Bulls

1thers :please specify; K<. 2%a! @"88eren!"a!e$ 7#ur S%are !ra@"n' 5#m&an7 8r#m #!%er$L ("n re'ar@$ #8 Cr#?era'e4 $a!"$8a5!"#n4 $er6"5e$4 &r#@u5!$ (

K1. Are 7#u 5urren! 7 $a!"$8"e@ B"!% 7#ur S%are !ra@"n' 5#m&an7L Ces Bo

K.. H#B #8!en @# 7#u !ra@eL 4aily >eekly Monthly Cearly

KG. 2%a! &er5en!a'e #8 7#ur earn"n'$ @# 7#u "n6e$! "n $%are !ra@"n'L "p to '5M "p to */M "p to /5M Above /5M

K:+. H#B @# 7#u ra!e !%e$e $%are !ra@"n' 5#m&an"e$L

a. Reliance money 1. I3I3I $irect c. India 4ulls d. I'5FS I&67STSM%RT e. 8t.ers 9:lease s)eci*y;

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'. ,.

*. /.

).

K:/. 2%a! m#re 8a5" "!"e$ @# 7#u !%"n? 7#u reEu"re B"!% 7#ur DEMAT a55#un!L

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*I*LIO3RAPH> Ar!"5 e$

Capital Market eview *55)!5,%0ublished by S&-I7

*##?$

+inancial Management 0rashanna -handra%.th edition

+inancial Management ?han I Gain %)th edition Securities Analysis and 0ortfolio Management %+ischer I Gordon

esearch Methodology% 4avid . . -ooper and Schindler

2eC$"!e$

www.unicon.co.in www.icicidirect.com www.investsmart.com www.nseindia.com www.economicstimes.com

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