AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD Summer Internship Project Report 0n MARKETING OF FINANCIAL SERVICES PRODUCTS [RELIGARE SECURITIES

LTD.] In partial fulfillment of Summer Training for M.B.A Program ( 2010-2012} SUBMITT ED BY: TUSHAR PATEL ROLL NO: (60) MBA 2009 -2011 SUBMITTED TO: PROF KALIKA BANSAL 1

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD ACKNOWLEDGEMENT I am thankful to the management of Religare securities limited f or permitting me to go through my summer training. First and fore most I would l ike to thank my company guide Mr. chintan shah ( sales manager) for his constant encouragement, guidance and advice at every stage of my training. This project would not have been successfully completed without his great support. I am very much thankful to my college for their excellent guidance, support and appreciati on and he also provided me with this great opportunity to work in such a reputed organization. I express my sincere thanks to Prof. Kalika Bansal, Amity Global Business School, Ahmadabad who helped me in understanding the project and the im plementation of the same. Her suggestions really helped me think on a broad pers pective and give me motivation to do my best. I would also like to thank Amity, Ahmadabad for helping and supporting me for my Summer Internship Program at RELI GARE SECURITIES LIMITED. Date: Place: - Ahmadabad PATEL TUSHAR 2

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD PREFACE Indian Stock market is considered to be the one of the fastest growing a s well as most volatile market in the world. Sensex and Nifty has touched all ti me high and created history. There are many factors which contributes such a dra stic change in the stock market. We can divide these factors in mainly three cat egories like economic factors (These factors effect economy as a whole), industr y specific factors (Such factors related to the any industry specific event that can affect industry as a whole) and company specific factors (These factors inc ludes any such event or news about the company which could affect its share pric e). During recent times many corporate actions has taken place which have substa ntially affect the individual share price of the company. The actions taken by t he company is known as event. Such event includes Dividend Distribution, Bonus I ssue, Right Issue, Mergers & Acquisitions, and Stock Split etc. Event studies ex amine the behavior of firms stock prices around corporate events. A vast literatu re written over the past several decades has become an important part of financi al economics. Prior to that time, the usefulness of event studies arises from th e fact that the magnitude of abnormal performance at the time of an event provid es a measure of the (unanticipated) impact of this type of event on the wealth o f the firms claimholders. Thus, event study provides evidence relevant for unders tanding corporate policy decisions. In this research report we try to study one of such corporate event and fry to find out its impact on that company and inves tors. 3

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD CERTIFICATE This is to certify that Mr. TUSHAR PATEL, M.B.A student of Amity Global Business School, Ahmedabad has done research project on the topic MARKETING OF FINANCIAL SERVICES PRODUCT [RELIGARE SECURITIES LTD.] He successfully completed his project under my guidance. This project certifies the work of the candidate based on actual survey of the concerned project. Date: Place: Ahmedabad Prof. Kalika Bansal (Faculty Guide) 4

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD EXECUTIVE SUMMARY This project has been a great learning experience for me; at t he same time it gave me enough scope to implement our analytical ability. This p roject as a whole can be divided into two parts: The first part gives an insight about the importance of Demat account which is necessary for dealing in stock m arket. This part shows that the charges (Brokerage plans) for trading in the Rel igare securities limited. There are various schemes in this company according to the clients portfolio. This part is also include the comparative study of charge s in other organization with respect to this company. However, the second part g ives an insight about the importance of Fundamental analysis in the broking indu stry. It is also based on whatever I learned at collage and also I have gathered all information through internet. In narrow sense the fundamental analysis is m ore concern with such specific factors such as intrinsic value of the firm, etc. fundamental analysis is also a part of equity analysis which is generally done by the fund managers or institutional & professional advisors before they invest or gives the advice for investing in such stocks. Lastly the third part gives a n insight about the importance of Technical analysis in the broking industry. It is purely based on whatever I learned at collage and also I have gathered all i nformation through internet. In narrow sense these attitudes are related to the role under condition with such specific factors such as trend, or price & chart patterns, etc. Technical analysis is a part of equity analysis which is generall y done by the fund managers or institutional & professional advisors before they invest or gives the advice for investing in such stocks 5

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD CONTENT NO. 1. 2. 3. TITLE ACKNOWLEDGEMENT PREFACE BODY REPORT Executive summery Pg. No. 2 3 Introduction of the company Research design Objective of the study Data collection 4. GROUP COMPANIES featur es Key events and milestones Vision and mission Types of accounts 7 8 8 13 18 22 23 28 33 37 38 43 5. INTRODUCTION TO COMMODITY MARKETS History of commodity trading Leading commoditi es market in india 6. TYPES OF SHARES TRADING 7. DATA ANALYSIS AND INTERPRETATION 8. 9. 10. FINDINGS AND CONCLUSION APPENDIX BIBLIOGRAPHY 60 61 66 6

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD Introduction of the company Religare is a global financial services group with a presence across Asia, Africa, Middle East, Europe and the Americas. Religare is promoted by the promoters of Ranbaxy pharmaceuticals Limited. In India, Religar es largest market, the group offers a wide array of products and services ranging from insurance, asset management, broking and lending solutions to investment b anking and wealth management. The group has also pioneered the concept of invest ments in alternative asset classes such as arts and films. With over 10,000 empl oyees across multiple geographies, Religare serves over a million clients, inclu ding corporate and institutions, high net worth families and individuals, and re tail investors. Religare operate from six regional offices and 25 sub-regional o ffices and have a presence in 330 cities and towns controlling 979 locations whi ch are managed either directly by Religare or by our Business Associates all ove r India, the company have a representative office in London. While the majority of Religare offices provide the full complement of its services yet it has dedic ated offices for investment banking, institutional brokerage, portfolio manageme nt services and priority client services. As on date the Company is empanelled w ith UTI, IDBI, IFCI, SBI, BOI-MF, Punjab National Bank, PNB-MF, Oriental Insuran ce, 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 w as founded with the vision of providing integrated financial care driven by the relationship of trust. The bouquet of services offered by RELIGARE includes Brok ing (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 th e reach of RELIGARE, the clients of the company greatly benefit by its strong re search capability, which encompasses fundamentals as well as technical knowledge . 7

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD RESEARCH DESIGN TITLE OF THE STUDY MARKETING of FINANCIAL SERVICES PRODUCTS [ RELIGARE SECURITIES LTD. ] OBJECTIVES OF THE STUDY: Getting a knowledge about a demat account , trading account ,commodity ,equity , Insurance plus investments. How to earn profit in positive and negative markets? To Study how to build a relationship marketing in Capital Market.? To study var ious financial products like Equity, Mutual Funds, Commodity& Portfolio manageme nt services. To Study the various services provided by Broker house to there cli ents. To study what other services investors expect from their broker house. DATA COLLECTION 8

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD Primary data Collected through Structured Questionnaire. Secondary data We had a lso made phone calls to the client to get accurate information for their investm ent. Another method to get the information was a direct approach in which we app roached the clients and got a direct response from them. Discussions with the co ncerned by personal interview LIMITATIONS Client does not proper answer about an opening account Compare our product with other company product Fake lead is to be generated 9

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD Activities of Religare Enterprises Limited Religare Securities Limited Equity Broking Online Investment Portal Portfolio Ma nagement Services Depository Services Religare Finvest Limited Lending and Distribution business Proposed Custodial bu siness Religare Insurance Broking Limited Life Insurance Religare Commodities Limited Commodity Broking General Insurance Reinsurance Religare Capital Markets Limited Investment Banking Proposed Institutional Broki ng Religare Arts Initiative Limited Business of Art Gallery launched - arts-i Religare Realty Limited In house Real Estate Management Company Religare Hichens Harrison** Corporate Broking Institutional Broking Derivatives Sales Corporate Finance Religare Venture Capital Limited Private Equity and Investment Manager Religare Asset Management* 10

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD Name Religare is a Latin word that translates as 'to bind together'. This name has be en chosen to reflect the integrated nature of the financial services the company offers. Symbol The Religare name is paired with the symbol of a four-leaf clover. Traditionally , it is considered good fortune to find a four-leaf clover as there is only one four-leaf clover for every 10,000 three-leaf clovers found. For us, each leaf of the clover has a special meaning. It is a symbol of Hope. Trust. Care. Good For tune. For the world, it is the symbol of Religare. For us, each leaf of the clover has a special meaning. It is a symbol of Hope. T rust. Care. Good Fortune. For the world, it is the symbol of Religare. The first leaf of the clover represents Hope. The aspirations to succeed. The dr eam of becoming. Of new possibilities. It is the beginning of every step and the foundation on which a person reaches for the stars. The second leaf of the clov er represents Trust. The ability to place ones own faith in another. To have a re lationship as partners in a team. To accomplish a given goal with the balance th at brings satisfaction to all, not in the binding, but in the bond that is built . The third leaf of the clover represents Care. The secret ingredient that is th e cement in every relationship. The truth of feeling that underlines sincerity a nd the triumph of diligence in every aspect. From it springs true warmth of serv ice and the ability to adapt to evolving environments with consideration to all. 11

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD The fourth and final leaf of the clover represents Good Fortune. Signifying that rare ability to meld opportunity and planning with circumstance to generate tho se often looked for remunerative moments of success. Hope. Trust. Care. Good For tune. All elements perfectly combine in the emblematic and rare, four-leaf clove r to visually symbolize the values that bind together and form the core of the R eligare vision. 12

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD INTRODUCTION Religare Securities Ltd Religare Finvest Ltd Religare Wealth Management Services Ltd Religare Commodities Ltd Religare Capital Markets Ltd RELIGARE ENTERPRISE LTD. Religare Insurance Broking Ltd Religare Finance Ltd Religare Venture Capital Pvt Ltd Religare Realty Ltd GROUP COMPANIES 13

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD Religare Enterprises Limited group comprises of Religare Securities Limited, Rel igare Commodities Limited, Religare Finvest Limited and Religare Insurance Broki ng Limited which deal in equity, commodity and financial services business. 1. R eligare Securities Limited RSL is one of the leading broking houses of India and are dealing into Equity Broking, Depository Services, Portfolio Management Serv ices, Internet Trading, Institutional Equity Brokerage & Research, Investment Ba nking, Merchant Banking and Corporate Finance. To facilitate free and fare tradi ng process Religare is a member of major financial institutions like, National S tock Exchange of India, Bombay Stock Exchange of India, Depository Participant w ith National Securities Depository Limited and Central Depository Services (I) L imited, and a SEBI approved Portfolio Manager. RSL serves a platform to all segm ents of investors to avail the opportunities offered by investing in Indian equi ties either on their own or through managed funds in Portfolio Management 2. Religare Commodities Limited Religare is a member of NCDEX and MCX and provid es platform for trading in commodities, which is an online facility also. RCL provides platform to both agro and non-agro commodity traders to derive the actual price of the commodity and also to trade and hedge actively in the growin g commodity trading market in India. With this realization, Religare Commodities is coming up with its branches at mandi locations. It is a flagship effort from our team which would be helpful in facilitating trade and speculating price of commodities in future. 14

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD 3. Religare Finvest Religare Finvest Limited (RFL), a Non Banking Finance Compan y (NBFC) is aggressively making a name in the Financial services arena in India. In a fast paced, constantly changing dynamic business environment, RFL has deli vered the most competitive products and services. RFL is primarily engaged in th e business of providing finance against securities in the secondary market. It a lso provides finance for application in Initial Public Offers to nonretail clien ts in the primary market . RFL is also planning to initiate personal loan portfo lio as fund based activity and mutual fund distribution as fee based activities. Along with this, the company also undertakes non-fund based advisory operations in the field of Corporate Financing in the nature of Credit Syndication which i ncludes inter alias, bills discounting, inter corporate deposit, working capital loan syndication, placement of private equity and other structured products. 4. Religare Insurance Broking Ltd. Religare has been taking care of financial serv ices for long but there was a missing link. Financial planning is incomplete wit hout protective measure i.e. structured products to take care of event of things that may go wrong Religare Insurance Broking Limited. As composite insurance br oker, deals in both insurance and reinsurance, providing our clients risk transf er solutions on life and nonlife sides. This service will take benefit of Religa res vast business empire spread throughout the country -- providing our valued cl ients insurance services across India. We aim to have a wide reach with our serv ices literally! Thats why we are catering the insurance requirements of both reta il and corporate segments with products of all the insurance companies on life a nd non-life Still, there is more in store. We also cater 15

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD individuals with a complete suite of insurance solutions, both life and general to mitigate risks to life and assets through our existing network side. For corp orate clients, we will be offering value based customized solutions to cover all risks, which their business is exposed to. Our clients will be supported by an operations team equipped with the best of technology support Religare Insurance Broking aims to provide neutral, transparent and professional risk transfer advi ce to become the first choice of India Why customer trade with Religare? 1. Personal Assistance Dedicated dealers for f acilitating trading and post trade needs. Dedicated Relationship Managers for as sisting multiple investments needs. 2. Research & Advisory Regular news and updates on market Research service over SMS to keep one Daily and weekly technical reports A complete information report on results and performance individual companies. Complete reports on various ec onomic sectors and their performance along with analysis of few major companies in that sector Trading calls in Futures & Options Daily capsule of Market indice s and index movement, national and international corporate news, and their perfo rmance along with forth coming IPO tracker. 3. Add-Ons 16

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD Access to all your accounts through your Customer Relationship Number (CRN) Acce ss your ledger balances and account information over internet, branch and call c enter Interest on Cash Margin Even while you are waiting to make your next trade or on line investment, your unutilized cash does not lie idle with us. You earn intere st on your unutilized cash margin. 360 degree Investment Portal Invest online in Equities, Commodities, Currency, IPO and Mutual Funds in a single platform and maintain all your financial records at one place. Now, you can also file your ta x and book air tickets, make hotel reservations and buy attractive holiday packa ges, all online. So get empowered, enrich your experience of investing online an d open yourself to a whole new world of possibilities for Religare Online will b ecome Your World Online, beyond investments! Exposure upto 20 times* on your margin Allowing you the freedom to trade without hassles throughout the day without having to worry about your cash margin. You can get exposure (on cash segment) as high as 20 times for intraday trades. FEATURES 17

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD 1. What is Trade Rewards ? Trade Rewards* is a unique offering from Religare that gives you dual benefit of a hassle free investment experience on the net as well as an opportunity to earn while you invest with us. So earn reward points each time you trade in Equities, Commodities & Currency De rivatives or invest in your favorite IPOs online with us through highly sophisti cated and customized trading platform R-ACE (Religare Advanced Client Engine) 2. How are reward points calculated? You will earn reward points as you trade/in vest using Religares online trading platform R-ACE. The earned reward points can be redeemed against attractive gift vouchers and offers. 3. How will I know how many reward points have I accumulated? You can check the status of your accumulated reward points on your trading screen under trading sc reen. A complete statement of transactions of your reward points can also be vie wed on trading screens. 4. How do I redeem my reward points? The reward points accumulated by you can be redeemed using the "Redemption" option in the Trade Reward section. You can red eem your reward points against our list of attractive gift vouchers and offers. 5. How many points can I redeem ? The points reflected against "Total Redeemable " option in the statement can be redeemed at anytime. The redeemable points are calculated on the basis of previous months transactions. 6. When will I get my gift? Any redemption request received by Religare will be fulfilled in approximately two 18

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD weeks time from the date of receipt & delivery will be made at the address regis tered with us. You can also track your shipments by using Previous Redemption opti on. Redemption partners 19

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD Religare Securities Limited 20

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD Religare Securities Limited (RSL), a 100% subsidiary of Religare Enterprises Lim ited is a leading equity and securities firm in India. The company currently han dles sizeable volumes traded on NSE and in the realm of online trading and inves tments; it currently holds a reasonable share of the market. The major activitie s and offerings of the company today are Equity Broking, Depository Participant Services, Portfolio Management Services, International Advisory Fund Management Services, Institutional Broking and Research Services. To broaden the gamut of s ervices offered to its investors, the company offers an online investment portal armed with a host of revolutionary features. RSL is a member of the National St ock Exchange of India, Bombay Stock Exchange of India, Depository Participant wi th National Securities Depository Limited and Central Depository Services (I) Li mited, and is a SEBI approved Portfolio Manager. Religare has been constantly in novating in terms of product and services and to offer such incisive services to specific user segments it has also started the NRI, FII, HNI and Corporate Serv icing groups. These groups take all the portfolio investment decisions depending upon a clients risk / return parameter. Religare has a very credible Research an d Analysis division, which not only caters to the need of our Institutional clie ntele, but also gives their valuable inputs to investment dealers. Key Events and Milestones 21

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD 1994 RSL received membership of the NSE as stock broker 2000 RSL received membership of the Futures and Options segment of the NSE RSL r eceived registration as Depository Participant with NSDL 2002 RSL received registr ation as Portfolio Manager from SEBI 2003 RSL received registration as Depository P articipant with CDSL. 2004 RSL received membership of the BSE as stock broker 2006 Establishment of representative office in London. RCL received membership o f NMCE. RIBL received licence from IRDA to act as composite broker. Joint venture agreement with Aegon International N.V. for carrying on the business of mutual f und asset management.RSL received registration as Merchant Banker in Category - I from SEBI. 2007 -RSL received membership of derivative segment of the BSE as trading-cum-cl earing member VISION AND MISSION 22

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD Vision To build Religare as a globally trusted brand in the financial services domain a nd present it as the Investment Gateway of India'. Mission Providing complete financial care driven by the core values of diligence and tra nsparency. Brand Essence Core brand essence is Diligence and Religare is driven by ethical and dynamic pr ocesses for wealth creation. Major Players of Online Trading in India Religare Securities 23

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD ICICI Direct Share Khan India bulls Motilal Oswal HDFC HSBC Angel Trade Reliance Money Standard Chartered IDBI Paisa Builder Geojit Networth Kotak Securities In dia infoline India infoline Others Religare securities offering different services. a) Equity & Derivative: 24

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD Religare is one of the heavyweight equity players in India with membership of Na tional Stock Exchange of India and Bombay Stock Exchange - both major exchanges of India. We believe in innovative services that could cater a range of customer s according to their requirements. b) Commodities: Religare Commodities Limited is a member of both the exchanges ( MCX & NCDEX) that allows you to trade in all the commodities traded at both the exchanges. At present, trading in commodities is restricted to futures contracts only. Religare is currently offering special services to our esteemed investors in commodities:. Portfolio Advisory Services (COMPASS) - This allows investors to get the benefit of our in-depth research services and generate better returns with minimal risk. c) Depository Services: Religare is among the few major Depository Participants holding securities worth more than Rs.6000 crore under its management. RSL provi des depository services to investors as a Depository Participant with NSDL and C DSL. d) Portfolio Management Services The main idea behind Portfolio Management Servi ces is to manage our client's wealth more efficiently, reduce risk by diversifyi ng across assets, sectors and funds, and maximizing returns. JOINT VENTURES 25

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD AEGON Religare Life Insurance Company Life Insurance business (AEGON as a partne r) For more information log on to www.aegonreligare.com Religare Macquarie Wealth Management Ltd. Private Wealth business (Macquarie, Au stralian Financial For Services major as log a partner) on to more information http://www.religaremacquarie.com/ Vistaar Religare -The Film Fund India's first SEBI approved Film Fund (Vistaar as a For more information log par tner) on to http://www.vistaarreligare.com/ Milestone Religare - Private Equity Fund Milestone, one of India's premier indep endent fund houses and Religare have come together and through the JV have forme d an entity, Milestone Religare Investment Advisors Private Limited. For more in formation log on to http://www.milestonereligare.com/ 26

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD OTHER GROUP COMPANIES Fortis Healthcare Limited, established in 1996 was founded on the vision of creating an integrated healthcare delivery system. With 22 hos pitals in India, including multispecialty & super specialty centres, the managem ent is aggressively working towards taking this number to a significant level in the next few years to provide quality healthcare facilities and services across the nation. Super Religare Laboratories Limited (formerly SRL Ranbaxy) within 11 years of in ception has become the largest Pathological Laboratory network in South Asia. It started a revolution in diagnostic services in India by ushering in the most sp ecialized technologies, backed by innovation and diligence. The current footprin t extends well beyond India in the Middle East and parts of Europe. For more information log on to: http://www.srl.in/ 27

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD Type of Account Religare Stock Trading Religare Demat Religare Brokerage Brokerage and Account Fees of Religare Securities Product of RSL Religare offers its wide range of financial services though a sophisticated and customized trad ing platform - R-ACE (Religare Advanced Client Engine). Below are 3 flavors of R ACE accounts available to the investors. 1. R-ACE Lite (Advanced) R-ACE Lite is the advanced trading platform for the investor of Religare. This t rading account provides the entire feature of R-ACE (Basic) account. In addition it also provides real-time streaming stock quotes and alerts. This trading plat form is also browser based and no software installation is needed. 2. R-ACE Pro (Professional) As the name indicates this account is for high volume traders. Along with the fe atures from above 2 accounts, this account also comes with Trading Terminal soft ware which needs to install on your computer. This terminal directly connects th e investor to stock market and having all industry standard Treading terminal fe atures including technical charting (intra-day and EOD), multiple watch list, ad vanced hot-key functions for faster trading, derivative chains, futures & option s calculator etc. As in basic and advance account, trading is available online t hrough internet and offline though phone. 1. R-ACE LITE [ADVANCED] 28

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD Account activation charges Rs.499 Minimum margin of Rs.5000 required. Now due to modern business world and spread of the Information Technology most of the inve stor suggests online trading for saving the time as well as accuracy of the tran saction. Religare provide such services to its clients through R-ACE Lite accoun t. In such type of account client have a separate login id and password for open a R-ACE Lite software. In this software client can watch 20 different scripts a s his wish and can trade online. The clients can also make 6 groups of 20 script s each. 1. R-ACE PRO [ PROFESSIONAL] Account activation charges Rs.999 Minimum margin of Rs.10000 required. Religare also provide a very huge platform for its big and loyal clients. R-ACE pro is a same account as R-ACE Lite but only the difference in the R-ACE Pro is that a cl ient can add unlimited scripts as his wish. Brokerage at Religare Securities Religare offers different brokerage plans for d ifferent kind of clients. Let us see one by one plan as mentioned below. R-ACE C LASSIC PLUS: 29

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD Particular Fees Validity Period Classic plus Rs. 600 6 Months Brokerage: Type of trade Monthly turnover (Less than 1 cr.) Intraday Delivery Fu ture 0.05% 0.50% 0.05% Monthly turnover (1 Cr. To 5 Cr.) 0.04% 0.40% 0.04% Month ly turnover (More than 5 Cr.) 0.03% 0.30% 0.03% Note: Option brokerage is calculated 1% of gross premium amount or Rs. 75 per lo t whichever is higher R-ACE TRUMP PLUS: Particulars Cost of Subscription Validity Period Brokerage on Delivery Brokerage on Intraday Brokerage on Future Trade Brokerage on Option tra de(premium) Trump Plus Rs. 2500 12 Months 0.25% 0.025% 0.025% 1% Gross premium a mount or Rs 50 per lot whichever is higher 30

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD R-ACE TRUMP SUPER: Particulars Cost of Subscription Validity Period Brokerage on Delivery Brokerage on Intraday Brokerage on Future Trade Brokerage on Option tr ade(premium) Trump Super Rs. 15000 12 Months 0.15% 0.015% 0.015% 1% Gross premiu m amount or Rs 50 per lot whichever is higher R-ACE TRUMP STAR: Particulars Cost of Subscription Validity Period Brokerage on Delivery Brokerage on Intraday Brokerage on Future Trade Brokerage on Option tra de(premium) Trump Star Rs. 50000 12 Months 0.10 0.01 0.008 Rs 50 per lot R-ACE TRUMP SUPERSTAR: Particulars Cost of Subscription Validity Period Trump Su perstar Rs. 100000 12 Months 31

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD Brokerage on Delivery Brokerage on Intraday Brokerage on Future Trade Brokerage on Option trade(premium) Charges for call N Trade/ advisory desk or any other of fline trade facility 0.10 0.005 0.005 Rs. 25 per lot Rs. 10 per lot INTRODUCTION TO COMMODITY MARKET INDIAN COMMODITY MARKET 32

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD INTRODUCTION The vast geographical extent of India and huge population is aptly complemented by the size of the market. The broadest classification of the India n Market can be made in terms of the commodity market and the bond market. The commodity market in India comprises of all probable markets that we come acr oss in our daily lives. Such markets are social institutions that facilitate exc hange of goods for money. The cost of goods is estimated in terms of domestic cu rrency. India commodity market can be subdivided into the following two categori es: Wholesale Market Retail Market The traditional wholesale market in India dealt w ith whole sellers who bought goods from the farmers and manufacturers and then s old them to the retailers after making a profit in the process. It was the retai lers who finally sold the goods to the consumers. With the passage of time the i mportance of whole sellers began to fade out for the following reasons: The whol e sellers in most situations, acted as mere parasites who did not add any value to the product but raised its price which was eventually faced by the consumers. The improvement in transport facilities made the retailers directly interact wi th the producers and hence the need for whole sellers was not felt. In recent ye ars, the extent of the retail market (both organized and unorganized) has evolve d in leaps and bounds. In fact, the success stories of the commodity market of I ndia in recent years has mainly centered on the growth generated by the Retail S ector. Almost every commodity under the sun both agricultural and industrial is now being provided at well distributed retail outlets throughout the country. Moreover, th e retail outlets belong to both the organized as well as the unorganized sector. The unorganized retail outlets of the yesteryears consist of small shop owners who are price takers where consumers face a highly competitive price structure. On the other hand the organized sector is owned by various business houses like Pantaloons, Reliance, Tata and others. Such markets are usually selling a wide range of agri cultural 33

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD articles and manufactured, edible and inedible, perishable and durable. Modern promotion enable such markets to marketing strategies and other techniques of sales draw customers from every section of the society. However the growth of such mar kets has still centered on the urban areas primarily due to infrastructural limi tations. Considering the present growth rate, the total valuation of the Indian Retail Market is estimated to cross Rs. 10,000 billion by the year 2010. Demand for commodities is likely to become four times by 2010 than what it presently is . COMMODITY A commodity may be defined as an article, a product or material that is bought and sold. It can be classified as every kind of movable property, exc ept Actionable Claims, Money & Securities. Commodities actually offer immense po tential to become a separate asset class for market-savvy investors, arbitrageur s and speculators. Retail investors, who claim to understand the equity markets, may find commodities an understand as far as unfathomable market. But commodities are easy to fundamentals of demand and supply are concerned. Retail investors should underst and the risks and advantages of trading in commodities futures before taking a l eap. Historically, pricing in commodities futures has been less volatile compare d with equity and bonds, thus providing an efficient portfolio diversification o ption. In fact, the size of the commodities markets in India is also quite signi ficant. Of the country's GDP of Rs 13, 20,730 crore (Rs 13,207.3 billion), commo dities related (and dependent) industries constitute about 58 per cent. Currently, the various commodities across the country clock an annual turnover o f Rs 1, 40,000 crore (Rs 1,400 billion). With the introduction of futures tradin g, the size of the commodities market grows many folds here on. DIFFERENT TYPES OF COMMODITIES TRADED World-over one will find that a market exi ts for almost all the commodities known to us. These commodities can be broadly classified into the following: 34

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD METAL Aluminium, Copper, Lead, Nickel, Sponge Iron, Steel Long (Bhavnagar), Steel Long (Govindgarh), Steel Flat, Tin, Zinc Gold, Gold HNI, Gold M, i-gold, Silver, Sil ver HNI, Silver M Cotton L Staple, Cotton M Staple, Cotton S Staple, Cotton Yarn , Kapas Brent Crude Oil, Crude Oil, Furnace Oil, Natural Gas, M. E. Sour Crude O il Cardamom, Jeera, Pepper, Red Chilli Arecanut, Cashew Kernel, Coffee (Robusta) , Rubber Chana, Masur, Yellow Peas BULLION FIBER ENERGY SPICES PLANTATIONS PULSES PETROCHEMICALS HDPE, Polypropylene(PP), PVC OIL & OIL SEEDS Castor Oil, Castor S eeds, Coconut Cake, Coconut Oil, Cotton Seed, Crude Palm Oil, Groundnut Oil, Kap asia Khalli, Mustard Oil, Mustard Seed (Jaipur), Mustard Seed (Sirsa), RBD Palmo lein, Refined Soy Oil, Refined Sunflower Oil, Rice Bran DOC, Rice Bran Refined O il, Sesame Seed, Soymeal, Soy Bean, Soy Seeds Maize Guargum, Guar Seed, Gurchaku , Mentha Oil, Potato (Agra), Potato (Tarkeshwar), Sugar M-30, Sugar S-30 CEREALS OTHERS COMMODITY MARKET Commodity markets are markets where raw or primary products are exchanged. These raw commodities are traded on regulated commodities exchanges, in which they are bought and sold in standardized contracts. It covers physical product (food, metals and electricity) markets but not the ways that services, including those of governments, nor investment, nor debt, can be seen as a 35

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD commodity. Articles on reinsurance markets, stock markets, bond markets and curr ency markets cover those concerns separately and in more depth. One focus of thi s article is the relationship between simple commodity money and the more comple x instruments offered in the commodity markets. Commodity market is an important constituent of the financial markets of any country. It is the market where a w ide range of products, viz., precious metals, base metals, crude oil, energy and soft commodities like palm oil, coffee etc. are traded. It is important to deve lop a vibrant, active and liquid commodity market. This would help investors hed ge their commodity risk, take opportunities in the market. speculative positions in commodities and exploit arbitrage HISTORY OF COMMODITY TRADING COMMODITY TRADING IN INDIA The history of organized commodity derivatives in Ind ia goes back to the nineteenth century when the Cotton Trade Association started futures trading in 1875, barely about a decade after the commodity derivatives started in Chicago. Over time the derivatives market developed in several other commodities in India. Following cotton, 36

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD derivatives trading started in oilseeds in Bombay (1900), raw jute and jute good s in Calcutta (1912), wheat in Hapur (1913) and in Bullion in Bombay (1920). How ever, speculation in essential many feared that derivatives lead to unnecessary commodities, and were harmful to the healthy functioning of the markets for the underlying commodities, and also to the farmers. With a view to restricting spec ulative activity in cotton market, the Government of Bombay prohibited options b usiness in cotton in 1939. Later in 1943, forward trading was prohibited in oils eeds and some other commodities including food-grains, spices, vegetable oils, s ugar And cloth. After Independence, the Parliament passed Forward Contracts (Reg ulation) Act, 1952 which Regulated forward contracts in commodities all over Ind ia. The Act applies to goods, which are defined as any movable property other th an security, currency and actionable claims. The Act prohibited Options trading in goods. The Act envisages (imagine) three-tier regulation: 1) The Exchange whi ch organizes forward trading in commodities can regulate trading on a day-to-day basis, 2) The Forward Markets Commission provides regulatory oversight under th e powers delegated to it by the central Government. 3) The Central Government Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Di stribution - is the ultimate regulatory authority. In 1970s and 1980s the Govern ment relaxed forward trading rules for some commodities. LEADING COMMODITY MARKETS OF INDIA The government has now allowed national commo dity exchanges, similar to the BSE & NSE, to come up and let them deal in commod ity derivatives in an electronic trading environment. These exchanges are expect ed to offer a nation-wide anonymous, order driven; screen based trading system for trading. The Forward Ma rkets Commission (FMC) will regulate these exchanges. Consequently four commodit y exchanges have been approved to commence business in this regard. They are: 37

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD S.NO. 1 COMMODITY MARKET IN INDIA MULTI COMMODITY EXCHANGE (MCX), MUMBAI 2 NATIONAL COMMODITY AND DERIVATIVE EXCHANGE LTD (NCDEX), MUMBAI 3 4 NATIONAL BOARD OF TRADE (NBOT), INDORE NATIONAL MULTI AHMEDABAD COMMODITY EXCHAN GE (NMCE), COMMODITY EXCHANGES IN INDIA: A commodity exchange refers to the market place wh ere buying and selling of commodities for future delivery takes place. The two i mportant commodity exchanges in India in which most of the commodity are traded, are Multi-Commodity Exchange of India Limited (MCX), and National Multi-Commodi ty & Derivatives Exchange of India Limited (NCDEX). I. MULTI-COMMODITY EXCHANGE (MCX) 38

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD MCX an independent multi-commodity exchange has permanent recognition from Gover nment of India for facilitating online trading, clearing and settlement operatio ns for commodity futures markets across the country. Key shareholders of MCX are Financial Technologies (India) Ltd., State Bank of India, NABARD, NSE, HDFC Ban k, State Bank of Indore, State Bank of Hyderabad, State Bank of Saurashtra, SBI Life Insurance Co. Ltd., Union Bank of India, Bank Of India, Bank Of Baroda, Canara Bank, Corpo ration Bank. Headquartered in Mumbai, MCX is led by an expert management team wi th deep domain knowledge of the commodity futures integration of dedicated resou rces, robust technology and scalable since inception MCX has recorded many first to its credit. Inaugurated in November 2003 by Mukesh Ambani, chairman & managi ng director, Reliance Industries Ltd, MCX offers futures trading in the followin g commodity categories: Agro Commodities, Bullion, Metals- Ferrous & Non-ferrous , Pulses, Oils & Oilseeds, Energy, Plantations, Spices and other soft commoditie s. MCX has built strategic alliances with some of the largest players in commodi ties eco-system, namely, Bombay Bullion Association, Bombay Metal Exchange, Solv ent Extractors' sanghatana, united planters markets. Through the infrastructure, association of India, pulses importers association, shetkari association of India and India pepper and spice trade association. Today MCX is offering spectacular growth opportunities and advantages to a large cross sectio n of the participants including producers / processors, traders, corporate, regi onal trading centers, importers, exporters, cooperatives, industry associations, amongst others MCX being nation-wide commodity exchange, offering multiple comm odities for trading with wide reach and penetration and robust infrastructure, is well place d to tap this vast potential. NATIONAL COMMODITY & DERIVATIVES EXCHANGE LIMITED (NCDEX) National Commodity & D erivatives Exchange Limited (NCDEX) is a professionally managed online multi com modity exchange promoted by ICICI Bank Limited (ICICI Bank), Life Insurance Corp oration of India (LIC), National Bank for Agriculture and Rural Development (NABARD) and National Stock Exchange of 39

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD India Limited (NSE). Punjab National Bank (PNB), CRISIL Limited (formerly the Cr edit Rating Information Services of India Limited), Indian Farmers Fertilizer Co operative Limited (IFFCO) and Canara Bank by subscribing to the equity shares have joined the initial promoters as shareholders of the Exchange. NCDEX is the only commodi ty exchange in the country promoted by national level institutions. This unique parentage enables it to offer a bouquet of benefits, which are currently in shor t supply in the commodity markets. The institutional promoters of NCDEX are prom inent players in their respective fields and bring with them institutional build ing experience, trust, nationwide reach, technology and risk management skills. NCDEX is a public limit ed company incorporated on April 23, 2003 under the Companies Act, 1956. It obta ined its Certificate for Commencement of Business on May 9, 2003. It has commenc ed its operations on December 15, 2003. NCDEX is a nation-level, technology driven de-metalized on-line commodity exchan ge with an independent Board of Directors and professionals not having any veste d interest in commodity markets. It is committed to provide a world-class commod ity exchange platform for market driven by best global participants to trade in a wide spectrum of commodity derivatives practices, professionalism and transpar ency. NCDEX is regulated by Forward Market Commission in respect of futures trading in commodities. Besides, NCDEX is subjected to various laws of the land like the C ompanies Act, Stamp Act, Contracts Act, Forward Commission (Regulation) Act and various other legislations, which impinge on its working. NCDEX is located in Mu mbai and offers facilities to its members in more than 390 centers throughout In dia. The reach will gradually be expanded to more centers. NCDEX currently facil itates trading of thirty six commodities - Cashew, Castor Seed, Chena, Chilly, Coffee, Cotton, Cot ton Seed Oilcake, Crude Palm Oil, Expeller Mustard Oil, Gold, Guar gum, Guar See ds, Guar, Jeera, Jute sacking bags, Mild Steel Ingot, Mulberry Green Cocoons, Pe pper, Rapeseed Mustard Seed ,Raw Jute, RBD Palmolein, Refined Soy Oil, Rice, Rub ber, Sesame Seeds, Silk, Silver, Soy Bean, Sugar, Tar, Turmeric, Arad (Black Mat ed), Wheat, Yellow Peas, Yellow Red Maize & Yellow Soybean Meal. At subsequent p hases trading in more commodities would be facilitated. 40

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD Since 2002 when the first national level commodity derivatives exchange started, the exchanges have conducted brisk business in commodities futures trading. In the last three years, there has been a great revival of the commodities futures trading in India, both in terms of the number of commodities allowed for futures trading as well as the value of trading. While in year 2000, futures trading we re allowed in only 8 commodities, the number jumped to 80 commodities in June 2004. The value of trading in local curr ency saw a quantum jump from about INR 350 billion in 2001-02 to INR 1.3 Trillio n in 2003-04. The data in the below Table indicates that the value of commodity deriv atives in India could cross the US$ 1 Trillion mark in 2006. The market regulato r Forward Markets Commission (FMC) disseminates fortnightly trading data for each of the 3 national & 21 regional exchanges that have been set up in recent years to carry on the futures trading in commodities in the country. Exhibit presents comparat ive trading data for three fortnightly periods in March, June and September 2005 and brings up some interesting facts. 41

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD TYPES OF SHARE TRADING: 42

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD ONLINE SHARE TRADING: Online Trading is a service offered on the internet for purchase and sale of sha res. In the real world, one place orders on ones stockbroker either verbally (per sonally or telephonically) or in a written form (fax). In Online Trading, one ha s to access stockbroker's website through one internet-enabled PC and place order s through the broker's internet-based trading engine. These orders are directed towards the Stock Exchange without any intervention. There are 2 types of online trading service: discount brokers and full service online broker. Discount onli ne brokers allow you to trade via Internet at reduced rates. Some provide qualit y research, other don't. Full service online brokerage is linked to existing bro kerages. These brokers allow their clients to place online orders with the Optio n of talking/ chatting to brokers if advice is needed. Brokerage rates here are higher. The various transactions involved in online trading can be shown from th e point of view of the Client Broker Stock Exchange The client places an order from his net by logging on to his brokers site. The br oker accepts and executes the order, and places it with the exchanges. The excha nge accepts the order after checking the share limit for the day. The brokers ma kes the payment either directly via the clients bank account or pays through his own account and recovers it later from the client. The exchange receives money a nd completes the settlement. The client is intimated about the settlement either through the demat account or via E-mail. 43

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD BENEFITS OF ONLINE TRADING: This mode of trading has benefited to a great extent to many users and nowadays more and more people are attracted towards advantage s are that it: 1. Ensures the best price for investors This technique offers the best price for the buying and selling transactions of the investors, by ensuring proper matchi ng of their orders. Also due to the high level of transparency because of displa y of information relating to the specific stocks and company profiles, the inves tors are able to get the best quote for the shares. This leads to a reduction in the transaction cost for the investors. 2. Enables paperless trading Online trading integrates the bank, the brokerage a nd the demat accounts, which leads to easy and paperless trading for the client. 3. Allows quick trading The investor will be able to execute the entire trading transaction, right from logging on to the broker's site, to the execution and se ttlement of his bank account, in a very short period of time. 4. Reduces the settlement This method of trading reduces the settlement risk for the investor, as in this case no short sale is possible. That is .the seller wi ll not be able to sell the securities unless he has their 44

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD actual possession. In the case ction), when a seller wants to by the Depository Participant es the settlement risk for the rities. of a demat account (required for an online transa sell the securities, his demat account is checked before executing the sale transaction. This reduc buyer, who is assured of the delivery of the secu

HURDLES FOR ONLINE SHARE TRADING 1. Internet fraud: In India, internet frauds are not a very uncommon thing we se e this kind of frauds happening in different ways. 2. Internet connectivity is not everywhere in India: As we all know that interne t connectivity is to very less percentage of people and the people who are about internet are reluctant to go for online trading. 3. Older and experienced investor is not tech savvy. One of the biggest drawback s that a country like India faces is that the older and experienced people are n ot that tech savvy so they trust offline trading only. OFFLINE SHARE TRADING: 45

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD As the name suggest offline share trading is that trading in which client come t o the RM or call their RM to trade on behalf of them. In a country like India ma ximum share trading is done offline, as internet facility is not available every where in our country and various disadvantages that are attached to online share trading, many investor prefer offline share trading, which may be time consumin g but a safer option. Working of offline share trading: Normally in all broking firms each client is appointed one RM (Relationship mana ger) and one dealer, RM looks and performs the transaction on behalf on of their client, suppose client will call up the RM, then RM will enter the order in his computer as stated by the client. RM also provides him various other informatio n like margin short and other intra day report. in case of offline share trading , RM dealer can only advice their client but he cant commit a benefit in doing a particular transaction. All the telephone calls are recorded in case any proble m may arise in future. ADVANTAGES OF OFFLINE SHARE TRADING 46

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD 1. safer in comparisons to online share trading. Offline share trading is always considered to be a safer option than online share trading, because of increasin g internet fraud. 2. Share trading can be done without internet connectivity at ones home. In a cou ntry like India where internet connectivity is not available everywhere trading online is not possible for everyone, this is also the reason which enhances the growth of offline trading. 3. Better for new investors: offline share trading is considered to be better fo r new investor because in that case he can take a help of RM, but I case of onli ne share trading he himself must have a complete knowledge about share market. 4. Brokerage charged is less as compared to online trading. Brokerage charges ar e more in case of online share trading but less in offline share trading, if we compare the brokerage charge of Religare itself brokerage charges for offline ar e .3p and .30p on Intra day and Delivery respectively. DISADVANTAGE OF OFFLINE TRADING: 47

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD 1. It is a time consuming process as everything is done offline. it is quite obv ious that in case of offline share trading takes more time in comparisons to onl ine share trading, 2. RM may not provide the correct information as required by his client and may also trade without permission of client in order to achieve h is brokerage target. Online Trading Competes with Traditional Brokerage: There is an increasing demand for online trading due to consumer's growing prefe rence for internet as compared to offline share trading, but still maximum inves tor goes for offline share trading, because it is being used from years, and the y feel it to be a safer option, other reason could be as not much people in Indi a are tech savvy so the percentage of people doing online share trading is less. The study done in this report regarding this parameter clearly shows that altho ugh 91% of the people those who do share trading are aware about online share tr ading but still they dont prefer it. DATA ANALYSIS AND INTERPRETATION INCOME LEVEL 48

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD NO. OF PERSON 16 14 12 10 8 6 4 2 NO. OF PERSON 0 < 100000 1 - 2 LACS 2 - 5 LACS > 5 LACS Inference: There are 16 respondents who earn between 200000-500000 lacs and anot her 14 respondents earn between 100000-200000, 7 respondents earn less than 1000 00 and there are very less respondents in the survey who earn more than 500000 . INVESTMENT OBJECTIVE 49

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD NO. OF PERSON 12 10 8 6 4 2 0 NO OF PERSON Inference: majority person can invest the money of tax benefit .there are 11 respondents can invest money to give a tax benefit. And 9 respondents invest money to earn a high income benefits .and rest of the the 7 respondents invest the money to getting a retirement protection. INVESTMENT PORTION OF MY INCOME 50

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD Sales < 25% 25% - 50% 50% - 75% > 75% INFERENCES: RISK TAKING CAPACITY 51

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD NO OF PERSON 18 16 14 12 10 8 6 4 2 0 LOW MEDIUM HIGH NO OF PERSON INFERENCES : From whom will you get your Investment Advice? 52

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD NO OF PERSON OTHERS CONSULTANTS NO OF PERSON FAMILY FRIENDS 0 2 4 6 8 10 12 14 INFERENCES : There are majority of customers whose first source of information itself .i.e 13 respondents from others and the 11 respondents from f amily. And the remaining customers have first source of information friends, bro kers or consultants . These sources help the customers to take the decision rega rding investment i.e which commodity would be beneficial VARIOUS INVESTMENT AVENUES 53

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD POST OFFICE SAVINGS 13% NO OF PERSON BANK DEPOSITS 13% SHARES 45% INSURANCE 7% DEBENTURES 2% COMMODITY MARKET 5% MUTUAL FUNDS 15% INFERENCES: The above observation speaks about the financial instruments in which the people invest ;most of the people invest in the securit ies through share market and than invest in the mutual funds .and than after mos t of the people invest in the bank deposits. .thus more focuse should be made on securities so that company has the maximum investment. the less than people are invest in the debentures . HOW MUCH RETURNS GET AFTER INVESTING? 54

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD NO. OF PERSON 16 14 12 10 8 6 4 2 0 NO OF PERSON > 5% 5% - 10% 10% - 15% > 20% INFERENCES : in this above charts seen the 16 respondents are getting the between the 5- 10 % RETURNS And the another 13 respondents are getting the m ore than 20 % Retuns and less than 3 respondents are getting the 10 -15 %. 55

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD TIME HORIZON TO ACHIEVE YOUR FINANCEIAL GOAL? 20 18 16 14 12 10 8 6 4 2 0 < 5 YEARS 6 - 10 YEARS 11-14YEARS >15 YEARS INFERENCES : 56

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD HOW MANY MONTHS OF LIVING EXPENSES COULD BE SAFELY COVERED BY YOUR CURRENT LIQUI D INVESTMENT? NO. OF MONTHS > 12 MONTHS 4 - 12 MONTHS < 4 MONTHS INFERENCES : the more of the person review about this covered by liquid investment so they all are saying the more than 12 months are minimum occ urred to getting the living expenses could be safely covered by our liquid inves tments. And the other 40% response about this is less than 4 months or in within 4-12 months are covered our living expenses . 57

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD WHILE INVESTING YOUR MONEY WHICH WILL YOU PREFER? NO. OF PERSON TRUST 13% LIQUIDITY 25% HIGH RETURN 30% LOW RISK 32% INFERENCES : When the person investing in his money by any services provider they most prefer to higher return in here 30% respondents prefer the higher returns and rest of the 32% are preferred the low risk taken ..and none of them 13% are prefered the trust ..because of its a very risky .by servicer provider or even though the inv estors . That mean customers have different perception regarding investing their money. HOW DO YOU INTEND TO USE THE INCOME EARNED BY YOUR INVESTMENT PORTFOLIO? 58

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD NO. OF PERSON 20 18 16 14 12 10 8 6 4 2 0 REINVEST AT LEAST REINVEST 20 - 80 % OF RECEIVE AT L EAST 80 % EARNINGS EARNINGS 80% INVESTMENT NO. OF PERSON INFERENCES: The above charts describe the when the people earn the money while investing and earned they invest the earning income reinvested in th e share market. The 18 respondents are receving the 80 % amount . and the anothe r 10 respondents are some part of his income means 20-80% of amout reinvest in t his . CONCLUSION 59

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD Commodities market equity markets contrary to the beliefs of many people, has be en in existence in India through the ages and still has to go a long way ahead. Perceptions of investors towards equity and commodity trading might change quite a lot with time. The project reveals that equity and commodity market works in delivery base and intraday base .and commodity works in future and derivative in which investors invest money through the contracts given i.e 2 months contracts , 3 months contracts which expires last Thursday of every month. The future mark et also provide the benefits for the traders who want investment but they dont ha ve enough money at particular time they can invest with margin money in commodit ies and pay later to earn profits. The investors can avail the benefits by optin g different options, forward contracting, apply hedging to minimize the loss if occur in the commodity market. It also provides the facility of the hedging in t he commodity market by which a customer can minimize the losses which he is faci ng and ultimately save the principle amount for future investment. Religare secu rities Ltd has the quality staff which helps in retaining the customers for trad ing and the employees provide the advice about the most beneficial commodities a nd equity provide the solution to the queries of the customers. Thus, it is refe rred that employees is providing the important role in satisfaction of the custo mers. The project explains about satisfaction of the customers who are trading with th e Religare securities Limited on the services provided by the RCL which is essen tial to smooth functioning of the trading. The firm is able to satisfy their cus tomers by providing quality services and earning the higher profits in the marke t. At last, it can be concluded that most of the customers are satisfied with se rvices provided by the potential customers. Religare securities Limited and they are ready to give advice of 60

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD APPENDIX QUESTIONNAIRE Name: ________________ ve 75 yrs Age: [ ] Below 25 yrs [ ] 25-50 yrs [ ] 50-75 yrs [ ] Abo

Occupation: [ ] Business [ ] Profession [ ] Employed [ ] Others Gender: [ ] Male [ ] Female Educational qualification: ___________ Annual income: [ [ ] Below 1, 00,000 ] Ab ove 5, 00,000 [ ] 1, 00,000 -2, 00,00 [ ] 2, 00,000-5, 00,000 Your Investment objective: [ safety [ ] For future welfare [ ] Retirement protec tion [ ] Tax benefit ] High income [ ] Reasonable income [ ] Reasonable income a nd 61

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD Investment portion of your income [ ] below 25% [ ] 25% to 50% [ ] 50% to 75% [ ] above 75% Your Risk taking capacity [ ] low [ ] Medium [ ] High From whom will you get your Investment Advice? [ ] Friends [ ] Family [ ] Consul tants [ ] Others Your preference to various Investment avenues [ [ ] Shares [ ] Mutual funds [ [ ] Commodity market [ [ ] Debentures ] Insurance ] Bank deposits ] Post office savings What are the reasons for your preference? Do you have any investment in last 6 months? ___________________________________ _____________________________________ _____ How much Return you Get after Invest ing ? [ [ ] >5% ] 10% -15% [ [ ] 5 % - 10 % ] 15 % - 20% What is the primary objective for these assets? [ [ [ ] Wealth preservation ] So urce of Income ] Capital Appreciation 62

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD [ ] Retirement planning/ Education funding/long term wealth accumulation What is the time horizon you have to achieve your financial goal? [ [ [ [ ] 0-5 years ] 6-10 years ] 11-14 years ] 15 years or longer How do you intend to use the income earned by your investment portfolio? [ [ [ ] Reinvest at least 80% of my earnings ] Reinvest between 20% and 80% of my earni ngs ] Receive at least 80% of my earnings as income Taking into consideration all sources of income, what is your current attitude t owards your income needs: [ [ [ ] I can forego at least 10% of my current income ] Present income is adequate for present needs ] I need at least 10% more incom e How many months of living expenses could be safely covered by your current Liqui d investments? [ [ [ ] More than 12 months ] Between 4 and 12 months ] Less than 4 months Which of the following best describes your reaction if the value of your portfol io suddenly declined 15%? 63

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD [ ] I would be very concerned because I cannot accept fluctuations in the value of my portfolio. [ decline. [ [ ] If the amount of income I received was unaffecte d, it would not bother me. ] I invest for long term growth and accept temporary fluctuations due to market ] I invest for long term growth, but would be concern ed about even a temporary influences. While investing your money, which factor will you prefer? . (a) Liquidity (b) Lo w Risk (c) High Return (d) Trust Have you ever invested any where? Pl [ ] Yes [ ] No If yes where_______________________________________________________________ Rank your understanding and comfort-level with investing in the stock market [ ] No experience and no comfort level in investing in stocks [ ] No experience, but some level of comfort in stocks Some experience, and inte rest in stock market investing [ ] Reasonable experience and comfort level with the stock market 64

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD [ ] Extensive background and understanding of the stock market BIBLIOGRAPHY www.religareonline.com www.religrecm.com www.religarecommodities.com 65

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD http://www.commodities.in www.religaresecurities.com www.moneycontrol.com 66

AMITY GLOBAL BUSINESS SCHOOL, AHMEDABAD 67