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DECLARATION
I undersigned hereby declare that the project report is genuine and bonified work prepared by
me & submitted to Karnataka University Dharwad as partial full fillment of the award of
degree in B B A during the year.

The present work is original & conclusion drawn is based on the data & information collected
by myself.

To the best of my knowledge & belief the matter preserved in this project has not submitted to
any other university of institution for the award of any Degree.

Place : Bijapur

Date :
SAVITA. P. GADAGI

B B A IIIrd Semester

K U D Reg No: 04318640

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ACKNOWLEDGEMENT

I express my sincere thanks to Prof. M.A.Lingsur, Principal of Secab Institute of Business

Administration Bijapur for his valuable suggestion to prepare this project.

The success of this project lies in the hands of many persons who have helped me and guided
me in completing this project.
I take this opportunity to express my thanks and gratitude to each and every one of them.

I wish to take this opportunity to express my deep sense of gratitude to Mr. M.T.Kotnis HOD
Secab Institute of Business Administration Bijapur for his valuable guidance and moral
support.

I wish to specially this opportunity to express my deep sense of gratitude and especially thanks
to our president Mr.Salahuddin Punekar. He was been a constant source of inspiration and I
sincerely thank him for his suggestion and help to prepare this project.

I sincerely appreciate the help rendered by Mr.Prashant.s.Jevoor and all the employees of
Shavidhare Mineral Water Bijapur, who made this study possible. My greatest thanks and
love go to the members of my family for their moral support and care throughout my academic
carrier.
Finally it is my foremost duty lot of thanks to my Parents & friends who were a moral support
behind this and my respondents, who helped me to complete this project, without which this
project would not have been possible.

Date :
Place :

SAVITA. P. GADAGI

B B A IIIrd Semester

K U D Reg No: 04318640

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CONTENTS

 Executive summary
 Introduction
 Company Profile
 Products and Services
 Popular world stock exchanges
 Online trading and offline trading
 Organization chart
 Hierarchy of management
 Capital structure
 Share holding pattern
 Board of Directors report
 Conclusion
 Bibliography

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Executive summary

Introduction

As part of BBA course every 3rd Semester student has to undergo 15/30 days project

work in any organization. I have taken a project work in Share Marketing where I did study on

Organization.

Company

Religare Securities Ltd is a share broking company. It’s aim is to be the first

multinational providing complete financial services solution across the globe. It has it’s own

branches all over India. Religare is reputed company in Share market. It is giving tough

competition to major players like Anand Rathi, Geojeet and ShareKhan etc.

We no longer live in a stable and predictable economic climate, change is the norm and

things happen at a faster pace than before.

Organizations will survive only if they become flexible and are able to respond quickly

& appropriately, not only to changing circumstances but also by

proactively meeting the challenge of change. The same would follow for the investment

patterns of the people. It becomes very important to change the avenues for protecting their

hard earned money.

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Here I have tried to bring out the most preferred avenues of the people which they feel

safe to park their money so that they are in safer hands and I have tried to suggest some

reasons for the financial Services so that they change according to the changing needs of the

people.

Now days, foreign Institutional Investors (FII), Foreign Direct Investments (FDI)

playing a vital role in the economy. They are pumping huge money in our country and because

of this Nifty has given 37% return and SENSEX has given nearly 45% return in 2006 ……

Can any bank or SAVKAR give you this much return on your investment???(Provided you

should have patience...)

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ABOUT RELIGARE

Religare is driven by ethical and dynamic process for wealth creation. Based on this,

the company started its endeavor in the financial market. Religare Enterprises Limited (A

Ranbaxy Promoter Group Company) through Religare Securities Limited, Religare Finevest

Limited, Religare Commodities Limited and Religare Insurance Broking Limited provides

integrated financial solutions to its corporate, retail and wealth management clients. Today, we

provide various financial services, which include Investment Banking, Corporate Finance,

Portfolio Management Services, Equity & Commodity Broking, Insurance and Mutual Funds.

Plus, there’s a lot more to come your way.

Religare is proud of being a truly professional financial service provider managed by a

highly skilled team, who have proven track record in their respective domains. More than 2000

highly skilled professionals who subscribe to Religare philosophy and are spread across its

countrywide branches manage Religare operations. Today, we have a growing network of more

than 200 branches and more than 400 business partners spread across more than 180 cities in

India and a fully operational international office at London. However, our target is to have 350

branches and 1000 business partners in 300 cities of India and more than 7 International offices

by the end of 2006.

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Unlike a traditional broking firm, Religare group works on the philosophy of partnering

for wealth creation. We not only execute trades for our clients but also provide them critical

and timely investment advice. The growing list of financial institutions with which Religare is

empanelled as an approved broker is a reflection of the high-level service standard maintained

by the company.

VISION

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

the globe.

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

Religare team is led by a very eminent Board of Directors who provide policy guidance

and work under the active leadership of its CEO & Managing Director and support of its

Central Guidance Team.

Following is the list of Directors of Religare Securities Limited.

Chairman Mr. Harpal Singh

Managing Director Mr. Sunil Ghodhavani
Director Mr.Vinay Kumar Kaul
Director Mr.Malvinder Mohan Singh
Director Mr.Shivinder Mohan Singh
Religare Enterprises Limited group comprises of Religare Securities Limited, Religare

Commodities Limited, Religare Finvest Limited and Religare Insurance Broking Limited,

which deal in equity, commodity and financial services business.

RELIGARE SECURITIES LIMITED

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RSL is one of the leading broking houses of India and are dealing into Equity Broking,

Depository Services, Portfolio Management Services, Institutional Equity Brokerage &

Research, Investment Banking and Corporate Finance.

Extension of services has been a constant feature in Religare to regard the needs of our

clients. Consequently, company is soon going to launch Internet Trading and Merchant

Banking. This would take care of different investment needs of different classes of investors.

To facilitate free and fare trading process Religare is a member of major financial

institutions like, National Stock Exchange of India, Bombay Stock Exchange of India,

Depository Participant with National Securities Depository Limited and Central Depository

Services (I) Limited, and a SEBI approved Portfolio Manager.

RSL platform to all segments of investors to avail the opportunities offered by investing in

Indian equities either on their own or through managed funds in Portfolio Management.

RELIGARE COMMODITIES LIMITED

Religare is a member of NCDEX and MCX and provides 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 growing commodity

trading market in India.

RELIGARE FINVEST

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RFL is primarily engaged in the business of providing finance against

securities in the secondary market. It also provides finance for application in Initial Public

Offers to non-retail clients in the primary market.

RFL is also planning to initiate personal loan portfolio 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.

RELIGARE INSURANCE BROKING LTD.

Religare has been taking care of financial services for long but there was a

missing link. Financial planning is incomplete without protective measure i.e. structured

products to take care of event of things that may go wrong.

Consequently, Religare is soon coming up with Religare Insurance Broking

Limited. As composite insurance broker, we would deal in both insurance and reinsurance,

providing our clients risk transfer solutions on life and non-life sides.

This service will take benefit of Religare’s vast business empire spread

throughout the country -- providing our valued clients insurance services across India. We aim

to have a wide reach with our services – literally! That’s why we are catering the insurance

requirements of both retail and corporate segments with products of all the insurance

companies on life and non-life side.

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Still, there is more in store. We also cater individuals with a complete suite of insurance

solutions, both life and general to mitigate risks to life and assets through our existing network

of over 150 branches – expected to reach 250 by the end of this year!

For corporate clients, we will be offering value based customized solutions to cover all

risks, which their business is exposed to. An operations team equipped with the best of

technology support will support our clients.

Religare Insurance Broking aims to provide neutral, transparent and professional risk transfer

advice to become the first choice of India.

RELIGARE SECURITIES LTD

Name : Religare securities Ltd

Address of head the office : No 19, Nehru Place, New Delhi

SEBI registration no : INB230653732

INF230653732

Address of branch the office : City pride commercial complex, office no2
First floor, pankha bawadi, near
Employment Chowk Solapur 413001

Branch Head : Sachin Gadade

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For the first time Religare brings investing community the power to be associated with

the elite dealing rooms and freedom to execute trade on their own. That is, you may trade from

our branches or trade on your own over the net and with that you get our expertise and

assistance.

It has been designed to provide world-class experience and expertise to investors.

R-ALLY as the name suggests is the perfect partner for savvy investors. Clients opting for this

service would be provided services managed by a team of dedicated relationship managers and

experienced trade dealers. They would not only assist the client in information dissemination

but would also take care of all post trade requirements.

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MARKETIN
G

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PRODUCTS & SERVICES OF RELIGARE

1) Commodity:

Commodities as a word originated from the French word ‘committee’ meaning

‘benefit, profit’. Rightly so! The kind of continuously growing turnover which commodities

market has seen is incredible, benefiting both producers and buyers. These amazing results

have transformed commodities as a most sought after asset class. And this has caught attention

of the whole world.

Commodities market is particularly significant to our country as India is

essentially a commodity-based economy. Therefore, it should not be surprising to see that

Indian Commodities Market is also taking giant strides, growing at a scorching pace and is

well poised to occupy its rightful place in the world. This has provided the Indian investors

with new emerging investment opportunities in the arena of commodities.

Commodity Derivatives trading in India is now done through the electronic

trading platform of two popular exchanges NCDEX (National Commodity & Derivative

Exchange Limited) and MCX (Multi Commodity Exchange). The various commodities being

traded on the exchanges include precious metals, crude oil, agro-commodities amongst others.

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

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2) Depository services:

Religare is among the few major Depository Participants holding securities

worth more than Rs.6000 core under its management. RSL provides depository services to

investors as a Depository Participant with NSDL and CDSL.

The Depository system in India links issuers, depository participants,

depositories National Securities Depository Limited (NSDL) and Central Depository Services

(India) Limited (CDSL) and clearing house / clearing corporation of stock exchanges. These

facilitate holding of securities in dematerialized form and securities transactions are processed

by means of account transfers.

Guidelines to be followed for opening Demat account:

1. Kindly fill account opening form after going through account opening

instruction given in the account opening form.

2. Please submit you’re duly filled & signed account opening form with one

photograph, proof of identity and proof of address documents of account holder(s)

as may be required.

3. Kindly sign agreement with DP (agreement will state rights & obligations of

both parties) and Schedule of Charges for Depository Services. Religare will send a

copy of agreement and schedule of charge along with Welcome kit for your records.

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4. Religare would intimate "Client Id" (account no.) through a welcome letter once

your depository account is opened. This 'Client Id' number along with your 'DP Id'

number forms a unique combination. Both these numbers should be quoted in all

your future dealings with Religare Securities Limited.

5. Religare will give you instruction slips for depository services viz.,

dematerialization, delivery instruction for trades, etc. These instruction slips will

bear pre-printed serial numbers and your pre stamped client-id. Kindly preserve

these carefully.

3) Portfolio management:

Portfolio Management Services manage our client’s wealth more efficiently; reduce

risk by diversifying across assets, sectors and funds, and maximizing returns. Expert Portfolio

Managers find best of avenues to achieve optimum returns at managed levels of risk.

This service could also be called as “transparent collective investments”. You get

an upper hand in many ways.

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Benefits of Portfolio Management Services

1. Constant monitoring of portfolio’s asset mix to ensure effectively position to

meet long-term objectives. Our portfolio managers adjust the asset mix to

reflect the current economic climate and to benefit from opportunities.

2. Performance linked fees, constant disclosure of the portfolio on daily and

monthly basis.

3. It defines the customized risk and return.

4. Great flexibility of deploying and exposing the initial investment in the market.

5. High water mark level for profit sharing.

6. Diversification across asset classes and investment styles.

7. Investment objectives and goals presented clearly through a personalized

profile.

8. Encourages a disciplined approach to investing over a longer time horizon.

Mr. Kunj Bansal is the CIO of Religare securities Ltd. He is an engineer and a

management graduate and has more than 13 years of Direct Experience in Equity Market. He

was a part of equity team, which was awarded for the best fund performance from CNBC and

CRISIL. Business Today has also adjudged Mr. Bansal as best fund manager. He is supported

by two-fund managers Mr. Vipul Sangavi and Chetan Shah and a dedicated research team

supports.

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To enter Religare PMS investor needs to complete the following formalities:

a. Filling up Application Form

b. Sign up Client Agreement

Account can be opened by way of Fresh Inflow of Money or Transfer of Securities or

combination of Both.

You can invest with the corpus of cash and equity both by any ratio.

4) International equity & commodity:

International Equity and Commodities division scales up investment horizon for

investors by tapping into huge potential of international markets. This lets an investor partake a

share of international profits.

International Investment Advantage

1. Investors have a unique opportunity to participate in growth and profits of global

majors like Nokia, GE, Exxon Mobil, Pfizer and many others.

2. The width and depth of investment opportunities available internationally is

phenomenal. For instance, in India, current duration of a derivatives contract is three

months; liquidity is mostly restricted to one-month contracts. Overseas, an investor can

take longer derivative contracts (For example, General Electric Jan 2010 options are

available). Investors can also take open short positions in the cash markets.

3. A chance to gain from major international events like currency movements, oil

demand- supply situation, interest rate changes etc; which have a high correlation with

global equity and commodities market.

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4. Minimising risk through portfolio diversification. By spreading money over diverse,

stable, assured international financial markets, an investor can reduce country specific

risk.

5. International markets, especially American markets have an edge in terms of being

more retail investor friendly. The markets are strictly regulated, mature, research led,

efficient and transparent - based on verifiable information in public domain.

6. From a global investment perspective, liquid capital (FII) tends to move back into

developed economies, from currently boisterous developing markets, on interest rate hikes,

e.g. American markets. Investing in foreign markets can create a near perfect hedge against

crashes in domestic markets due to interest rate changes and currency valuation measures.

The Religare Edge:

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1. Religare International ‘Advisory Fund Management Service’ provides advisory

services to clients who wish to profit from trading in International financial

instruments.

2. Our team of experienced professionals bring their expertise in asset allocation

for benefiting from best of international investment opportunities based on -

3. Country attractiveness

4. Sector and Industry attractiveness

5. Company strengths

6. Global commodities trend.

7. Our team takes personal care in designing specific asset allocation criterion to

match each individual’s risk/return appetite based on the following behavioural

concepts:

8. Individual’s Risk Tolerance

9. Optimisation of Returns Expected

10. Portfolio: Monte Carlo Simulation

11. Client’s currency and credit risks are covered

12. Religare International division has exclusive tie-ups with top of the line

institutional research providers.

13. We encourage customer awareness through Religare’ exclusive daily newsletter-

‘International Market Wrap’.

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14. All trading platforms are online and available at client’s end giving him/her the

unique advantage of transacting on his/her own (optional) and being able to

monitor his/her portfolio real time (optional) in a transparent environment.

5) Nri desk:

Invest Back Home

India has emerged as one of the fastest growing financial markets in the world and is a

preferred destination for investment among the global investor fraternity. Religare Securities –

country’s premier financial services company will help you pick the best of products. At

Religare, we believe in partnership driven by ethical and dynamic process for wealth creation.

Investment Banking Division

We provide innovative, integrated and best-fit solutions to our corporate customers, it

is our continuous endeavor to provide value enhancement through diverse financial solution on

an on-going basis, through products like corporate debt, private equity, IPO, ECB, FCCB,

GDR/ADR etc.

Religare has set up a new TOP level sales force named Corporate Advisory Group-

(CAG) in order to create, maintain and serve excellent relationship by providing various

solutions to the corporate and Institutional sector globally.

CAG is a semantic approach where for one segment we will offer all the products.

CAG will be the one point for relationship for all big and small corporate, banks, financial

institution.

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BACK OFFICE

Client services:

CRN (Client Relationship Number)

1. Unique Number to serve as a single window login to your equity & commodity

BackOffice, depository account, mutual fund investment and portfolio management

services account.

2. View all family accounts by mapping them with a single CRN.

3. View all BackOffice Information on One screen

4. One solution for multiple investment platforms.

5. Instant and timely access to back office information.

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POPULAR STOCK INDEX FUTURES IN THE WORLD

NYSE Composite:

The NYSE composite was amongst the first stock index futures contract to be listed on May 6,

1982 at the New York Futures Exchange (NYFE) a subsidiary of NYSE. It is broadest of the

broad stock indexes available representing every common stock traded on the NYSE. It also

has three choices in terms of its contract size depending on the multiplier that best suits an

investor. The regular contract launched on May 6, 1982 has a multiplier of $500 times the

index. The NYSE Large Composite Index Contract has multiplier at $ 1000 while the NYSE

small Composite Index uses a $ 250 multiplier.

NYSE large contract was aimed at institutional users who could reduce their commission costs.

S&P 500:

It is a market-cap index representing 500 leading companies in leading industries in U.S. in

large cap blue chip stocks. Fund managers for judging their performance in US markets most

often use it as the benchmark.

S&P 500 futures contract dominates stock index trading in the US. The contract was launched

at CME in April 982 when the STP 500 Index was 117 having originally a contract multiples of

$ 500. Fifteen years later share rise in index value and consequently contract size led to

reduction in contract multiplies to $ 250.

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Value Line:

Value line stock Index is a broad based index of approximately 1600 large, mid and small cap

stocks traded on the NYSE, NASDAQ- Amex and in Canada. The price movement of each

stock is given equal weightage. Value line Index futures were the first index futures in the

world, starting on February 1982 at the KCBT. However it could not capitalize on its early

lead. It currently has a contract multiplies of $ 250 which was reduced from $ 500 on June

1998.

Dow Jones Industrial Average:

It is the oldest and most well known stock measure in the world. Dow Jones & Company

started it in May 26, 1896. The next index in US came only 60 years later. The longevity

accounts for its continued popularity today as a preferred measure of the market. It is a price-

weighted index of 30 of the largest most liquid blue chip US stocks, a number that has held

steady since 1928. When the index was first introduced it contained 12 stocks, figure that was

expanded to 20 in 1916. It is traded at Chicago board of trade with a contract multiplies of $

10.

RUSSEL 1000:

This is sub set of the broader Russel 3000 index, which tracks only U. S. companies. NYBOT

(New York Board of Trade) started futures and options based on Russel 1000 is march 99,

offering two contract size – one with $500 multiplier and another with a $1000 multiplier.

Russel 1000 is a market capitalization index, but each ones weighting in the index is based on

available market capitalization. The available shares exclude those held by other listed

companies, private investor holdings of 10% or more and the company’s ESOP that amount to

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more than 10% of shares outstanding. Thus it is the stocks with the most tradable outstanding

shares at the highest price that will hold the most influence on the index movement.

S & P Midcap 400:

It is a capitalization-weighted index of 400 U.S. stocks representing companies whose

capitalization is in the middle range of all firms. None of the stocks in S&P 500 can be in S&P

Midcap 400 and vice versa. Futures & Options on this index are traded at CME with a Contract

multiplier of $500.

S&P 500 / BARRA Growth Index and Value Index:

The above two indexes are constituted by splitting the S&P 500 Index into either growth or

value issues. There is no clear definition of growth versus value stock. These are determined

solely on the stock’s book- to- price ratio. The two indexes are designed to be equal in market

capitalization. As a result, more stocks are in the value index because these companies tend to

have lower market capitalization & higher book to price ratios than the growth stocks. Futures

& Options on these indices are traded on CME with a contract multiplier of $ 250.

NASDAQ 100:

It comprises of top 100 non-financial stocks, domestic as well as foreign, listed on NASDAQ.

It trades on CME with two different contract multipliers - $100 and $20. It is a market cap

index with modified capitalization to reduce the overwhelming influence of its top stocks like

Microsoft.

PSE Technology Index:

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It represents the technology sector stocks with 15 industries traded on NYSE, NASDAQ -

AMEX. It is a price-weighted index. Futures & options on the index are traded on NYBOT

with a contract multiplier of $100.

ISDEX - Internet Stock Index:

It consists of publicity traded Internet companies defined as those that exist because of the

internet and derive at least 51% of revenues from the internet. It trades on the KCBT wits a

contract multiplier of $100. It is calculated as a modified capitalization – index that limits the

percent weight of any single stock to 10% of the total market capitalization of all 50

component stocks.

All Ordinary Share Price index (Australia):

It is the benchmark index in Australia. A market cap index it comprises of the largest stocks

listed on the Australia stock exchange. Futures on the index are traded on Sydney Futures

Exchange with a contract multiplier of A $ 25.

Hang Seng Index:

This index is market capitalization weighted index of 33 stocks, representing about 70% of the

stock market’s total capitalization. Futures on Hang Seng Index are traded on Hong Kong

futures Exchange with a contract multiplier of H. K. $50.

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Nikkei 225 Average:

It is Japan’s longest running stock index. It is a price weighted stock index. Future contracts on

NIKKEI 225 trade or three exchange CME, OSE (Osaka) and Simex with contract multiples of

$5, Yen 1000 & Yen 500 respectively.

Dow Jones Stoxx 50 and Dow Jones Euro Stoxx 50:

To be included in either the Stoxx 50 or the Euro Stoxx 50, a stock must first be part of its

respective broader index, the Dow Jones Stoxx or the Dow Jones Euro Stoxx. Futures & cash

options are traded on MONEP & Eurex.

CAC 40

This benchmark Index of France consists of 40 blue chip stocks among France’s largest

companies & is weighted in the index by market capitalization. Futures & options on CAC 40

are traded on MONEP & MATIF.

DAX:

It is Germany’s blue chip index of 30 leading stocks. It is calculated on total returns basis and

not just on price basis. Income from dividends and rights issues are reinvested in the index

portfolio and are reflected in the index value. It is traded on Eurex with a contract multiplier of

Euro 25.

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MIB-30:

The MIB-30 is a capitalization-weighted index of 30 blue chip stocks listed on the Italian

exchange. Futures & Options are traded in Italian derivatives market with a contract multiples

of Euro 5. The index typically accounts for more than 70% of the markets’ total capitalization.

IBEX- 35:

It tracks Spain’s 35 most liquid stocks. It is capitalization weighted and equals about 80% of

the market’s total value. Derivatives on the index are traded on MEFF-RV with contract

multiplier of Euro 10.

OMX:

The Swedish Equity Index (OMX) is a capital weighted index of the 30 stocks with the market

trading volumes at the Stockholm Stock exchange. They account for about 66% of the total

market capitalization. Futures on the index are traded on OM Stockholm and OM London.

FTSE 100:

The FTSE 100 represents the value of the 100 largest companies listed on the LSE. These blue

chip stocks typically equal 2/3rd of the market’s total capitalization. FISE 100 is maintained by

FTSE International Ltd, a company formed in 1995 and jointly owned by LSE and the

financial times. It is a market capitalization index. Futures & options on the index are traded on

LIFFE with a contract multiplier of Pound 10.

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SENSEX:

For the premier Stock Exchange that pioneered the stock broking activity in India, 128 years of

experience seems to be a proud milestone. A lot has changed since 1875 when 318 persons

became members of what today is called "The Stock Exchange, Mumbai"

Since then, the country's capital markets have passed through both good and bad periods. The

journey in the 20th century has not been an easy one. Till the decade of eighties, there was no

scale to measure the ups and downs in the Indian stock market. The Stock Exchange, Mumbai

(BSE) in 1986 came out with a stock index that subsequently became the barometer of the

Indian stock market.

SENSEX is not only scientifically designed but also based on globally

accepted construction and review methodology. First compiled in 1986, SENSEX is a basket

of 30 constituent stocks representing a sample of large, liquid and representative companies.

The base year of SENSEX is 1978-79 and the base value is 100. The index is widely reported

in both domestic and international markets through print as well as electronic media.

The Index was initially calculated based on the "Full Market Capitalization"

methodology but was shifted to the free-float methodology with effect from September 1,

2003. The "Free-float Market Capitalization" methodology of index construction is regarded as

an industry best practice globally. All major index providers like MSCI, FTSE, STOXX, S&P

and Dow Jones use the Free-float methodology.

Due to is wide acceptance amongst the Indian investors; SENSEX is regarded to be the pulse

of the Indian stock market. As the oldest index in the country, it provides the time series data

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over a fairly long period of time (From 1979 onwards). Small wonder, the SENSEX has over

the years become one of the most prominent brands in the country.

The growth of equity markets in India has been phenomenal in the decade gone by. Right from

early nineties the stock market witnessed heightened activity in terms of various bull and bear

runs. The SENSEX captured all these events in the most judicial manner. One can identify the

booms and busts of the Indian stock market through SENSEX.

SENSEX

CalculationMethodology:

SENSEX is calculated using the "Free-float Market Capitalization" methodology. As per this

methodology, the level of index at any point of time reflects the Free-float market value of 30

component stocks relative to a base period. The market capitalization of a company is

determined by multiplying the price of its stock by the number of shares issued by the

company. This market capitalization is further multiplied by the free-float factor to determine

the free-float market capitalization.

The base period of SENSEX is 1978-79 and the base value is 100 index points. The notation

1978-79=100 often indicates this. The calculation of SENSEX involves dividing the Free-float

market capitalization of 30 companies in the Index by a number called the Index Divisor. The

Divisor is the only link to the original base period value of the SENSEX. It keeps the Index

comparable over time and is the adjustment point for all Index adjustments arising out of

corporate actions, replacement of scrips etc. During market hours, prices of the index scrips, at

which latest trades are executed, are used by the trading system to calculate SENSEX every 15

seconds and disseminated in real time.

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ONLINE TRADING AND OFFLINE TRADING

The equity market is all excited, and going places. No doubt, We want to get our

share of the action. Till recently, one could buy or sell stocks only through individual

stockbrokers and broking firms/companies. But now stock trading has gone online, and there

are many Web-based share-trading platforms such as icicidirect.com, hdfcsecurities.com,

investsmartindia.com and sharekhan.com. Most people just go to the broker their friends or

relatives deal with or recommend.

How easy is it to open an account, and does it match your trading requirements?

Brokerage houses are fast simplifying the account opening process which is rigorous though.

We must check if the broker is a trading member in more than one exchange. We also need to

consider the minimum margin requirement. Brokers usually specify that you open an account

with specific banks.

We need to factor in the minimum balance requirement of the bank before opting for the

broker. For instance, IndiaBulls has trading membership only in the NSE. So, you may not be

able to transact on the BSE if you choose that firm. IndiaBulls also requires you to open a

savings bank account with HDFC Bank, for which the opening balance is Rs 1,000. We will

also be required to maintain a quarterly minimum balance of Rs 25,000.

Some brokers also stipulate a minimum lot or transaction size for each deal.

Check if the lot is in keeping with the usual size of your transactions. High minimum lot sizes

or minimum values can constrain your trading. For instance, ICICI Direct stipulates a

minimum value of Rs 1,000.

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Does the broker allow us to short sell or margin trade? Some online brokerages do not. Many

do, but may charge extra.

Some brokers require you to hold your Demat account with them.

Offline or online, most brokers require you to maintain a minimum balance which determines

the trading limits.

IndiaBulls allows you to trade eight times the amount maintained in your account. For

delivery-based transactions, you can trade four times the amount. The remaining value should

be transferred before the start of the next trading day. If not, an interest of 21 per cent per

annum is levied on the outstanding balance. In the case of ICICI Direct, on placing your order,

the entire value of the transaction is earmarked and blocked in your savings bank account for

this purpose. This is possible as all the three accounts — trading, savings bank and demat —

are linked. A 4 per cent interest accrues for the amount until the order is executed.

Check the clauses carefully to see how much leverage (4/8 times) you get on the balance

maintained, the penalty on non-remittance and whether interest accrues on the capital

maintained with the broker.

Brokers usually have recurring and one-time charges (account opening fees). Recurring

charges are the annual maintenance fee and the brokerages on transactions.

Brokerage is usually 0.25-0.85 per cent of the transaction value or a flat rate (between Rs 10

and Rs 50) on a per trade basis, whichever is less. Some brokerages charge customers with

large accounts less. Annual charges for the demat account can be anything between Rs 250 and

Rs 750. The brokerage may or may not include service tax.

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 If we are an active investor with a high trading turnover, brokerage charges will leave a dent

on the profits. Obviously, the lower the percentage rate, the better.

 If we are a low volume investor — active or passive — a stiff minimum charge will hurt.

Therefore, choose a broker or a Web trader that either does not specify a minimum charge or

levies a low one.

Trading Web sites have their own order book, which is matched in the exchange's order book.

Brokers may not always trade in your name. This could mean a potential conflict of interest.

However, this is not a major problem now, as you can cross-check on the same day whether

your broker has carried out the trading instructions in the NSE or the BSE. You can use the

trade confirmation feature offered on the Web sites of both exchanges to track your trades. The

facility allows you to check your trades of the last five days too. You can verify the same day's

trades after 7 p.m. on the NSE, and the next day on the BSE. You can also track your

derivatives trades on the NSE site. To track the trades on the Web site of the exchanges, you

need a client code, order size and time among other things. In the case of web trading, there are

three ways to confirm your trade. One, the confirmation of the trade executed is available

immediately on the screen. Second through e-mail and, third, through the electronic contract

note.

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Offline trading:

With a broker, it becomes tedious to place orders when you are travelling. Broking houses do

have tie-ups and branches in important cities. Check about the availability of such services.

The online broking sites remove this difficulty from trading. But check whether an offline trade

order can be placed if the site is not accessible.

An immediate concern for investors using Net trading facilities is safety. SEBI

mandates security measures for web trade, besides the usual user ID and multi-level

passwords. However, it still pays to check with existing clients about the web trade site. In

absence of such contacts, stay away from lesser-known sites. For a first time investor, it is

prudent to trade with the facility backed by good institutional support even if it means

sacrificing some profits. It is helpful if your on-line/offline brokerages have customer service

to answer queries.

Online trading gives first-time and low-volume investors an edge over physical broker

trading in terms of convenience. Also, it is more transparent. Banks that offer trading platforms

make for seamless trading and payment options.

The entire transaction process — from placing the order to making payments and

delivery — takes place seamlessly, and requires minimal follow-up. The brokerage and demat

rates are determined by the frequency and value of trades. The existing slab structures of

brokerages tend to favour active traders. However, the costs are largely the same regardless of

whether you are trading offline or online.

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Once you get the hang of the process you can shift to an offline broker, if needed. Given the

present cost structures, there may be some savings to be had by making such a shift.

This could change if the scale of online trading picks up. Then, online platforms may

be able to lower their costs. So keep a tab on who offers what to use the cost-effective trading

platform.

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HUMAN
RESOURCE

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Organization Chart

RELIGARE SOLAPUR BR.

DEALING AND MARKETING

BRANCH MANAGER

PMS, HNI, CORPORATE

EQUITY
CONTROLER TELI-CALLER
CONTROLLER

COMMODITY BDR DEVELOPMENT &

CONTROLER BUSINESS
DEVELPOMENT

ONLINE -RACE

BUSINESS
AMBASSADOR

BACK OFFICE & IPO CROSS SALE OF

MANAGER EQ,COMMO, MF,

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THE HIERARCHY OF MANAGEMENT

Senior Management II

Senior Management I

Middle Management II

Middle Management I

Junior Management II

Junior Management I

Senior Executive

Executive

Trainee

Assistant

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The previous name of Religare Securities Ltd is FORTIS FINANCIAL SERVICES Ltd. The

branch has 14 Business Development Representatives (BDR). And also 370 clients. The branch

has good internal communication. The office starts from 9.55am and closes on 11.55pm. The

branch gives better facilities than other companies. The Branch collects 20000 to 22000

Brokerage daily.

Brokerage Structure

Cash Segment

Brokerage Slab Slab % Min. Paise One side/Both side

Delivery based 0.50 % 0.02 Both side
Daily square up 0.05 % 0.02 Both side
Settlement square --- --- --
up

Derivatives Segment

Brokerage Futures Options Minimum

Slab
Normal 0.05 % 0.05 % 0.02 %
Square up 0.05 % 0.05 % 0.02 %
Spread --- --- ---

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We can view the break up of the capital of the company

FORTIS FINANCIAL SERVICES LTD. CAPITAL
From To Class Authorized Issued PaidSTRUCTURE
Up Paid Paid
Year Year Of Capital Capital Shares Up Up
Share (Crores) (Crores) (Nos) Face Capital
Value (Crores
)
Equity
2005 2006 47.00 25.86 25860375 10 25.86
Share
Equity
2004 2005 26.00 25.86 25860375 10 25.86
Share
Equity
2003 2004 26.00 25.86 25860375 10 25.86
Share
Equity
2002 2003 26.00 25.86 25860375 10 25.86
Share
Equity
2001 2002 26.00 25.86 25860375 10 25.86
Share
Equity
2000 2001 26.00 25.86 25860375 10 25.86
Share
Equity
1999 2000 26.00 25.86 25860375 10 25.86
Share
Equity
1996 1999 26.00 25.86 25860375 10 25.86
Share
Equity
1995 1996 24.00 4.56 4860375 10 4.86
Share
Equity
1994 1995 24.00 3.00 3000000 10 3.00
Share

We can view the latest three shareholding pattern for the company under two broa

categories (Promoter & Non Promters)

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Share Holding Pattern as
30/09/2006 30/06/2006 31/03/2006
on :
Face Value
10.00 10.00 10.00
No. of Share holding %

PROMOTER'S HOLDING

Indian Promoters
20588249 76.45 20588249 79.61 20354799 78.71
Sub Total
20588249 76.45 20588249 79.61 20354799 78.71
NON PROMOTER'S HOLDING

Institutional Investors

Banks Fin. Inst. and

950 0.00 0 0.00 0 0.00
Insurance
FII's
0 0.00 0 0.00 1356 0.01
Sub Total
950 0.00 0 0.00 1356 0.01

Other Investors
Private Corporate Bodies
1307017 4.85 980714 3.79 941269 3.64
NRI's/OCB's/Foreign
1073681 3.99 1075631 4.16 1073951 4.15
Others
Directors/Employees
1400 0.01 1850 0.01 0 0.00
Sub Total
2382098 8.84 2058195 7.96 2015220 7.79
General Public
3960478 14.71 3213931 12.43 3489000 13.49
GRAND TOTAL
26931775 100.00 25860375 100.00

FORTIS FINANCIAL SERVICES DIRECTOR’S REPORT

LTD
We can view full text of the latest Director's Report for the company.

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ANNUAL REPORT 2005-2006 Year End: 2006

DIRECTORS' REPORT
The Directors are pleased to present the Eleventh Annual
Report along with Audited Accounts.
For the yea ended 31 march 2006.

FINANCIAL HIGHLIGHTS

(Rs. Lacs)
Particulars March 31 March 31
2006 2005
Gross Income 2623.16 918.73
Profit Before Tax (PBT) 243.59 41.17
Amounts written off 900.14 0.00
Provision for Tax 7.18 0.00
Profit After Tax (PAT) 236.41 41.17
Reversal of Provision for 1205.09 894.20
Non Performing Assets/
Diminution in value of
Investments
Balance Brought (3692.35) (2975.68)
Forward from last year
Balance Carried Forward (2224.63) (3692.34)

We can view the entire product mix with Product names, Sales quantity &
Value along with percentage contribution.
From each individual product.

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Sales Sales Value Product
Product Name Year Month UOM
Quantity (Crores) Mix
Income From Sale
Of Share & 2005 12 0 1.83 48.82
Securities
Finance & Service
2005 12 0 0.91 24.38
Charges
Income From
2005 12 0 0.58 15.40
Finance
Income From
Brokerage & 2005 12 0 0.21 5.51
Commission
Lease Rentals
2005 12 0 0.12 3.11
Dividend
2005 12 0 0.05 1.38
Interest
2005 12 0 0.05 1.36

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CONCLUSION

It was a great experience for having studied about Religare Securities Ltd

Solapur. Here I gained enough knowledge about particular aspect of share market. I hope this

project will me in my career also.

From this project I conclude that Now a days, foreign Institutional Investors (FII),

Foreign Direct Investments (FDI) playing a vital role in the economy. They are pumping huge

money in our country and because of this Nifty have given 37% return and SENSEX has given

nearly 45% returned in 2005.

To mint money in the share market you must have some knowledge about the company

in which you are putting your funds, patience, etc… but this is not taken into consideration by

most of the people because of “Greed”. That’s why this is game of “FEAR & GREED” and

Tussle between “BULLS AND BEARS”

“INVEST TIME BEFORE INVEST”

KARNATAK UNIVERSITY, DHARWAD Page 44

Share Holding Pattern as on :
Face Value

Siba
Indian Promoters

BIBLIOGRAPHY

1. Principles of Marketing

- By Philip Kotler

2. Internet websites:-

www.google.com

www.rediff.com

www.religare.in

www.bse-india.com

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