I got the opportunity to do my summer training in “Reliance Money Ltd.” through my college, Master School Of Management, MEERUT. This exposure was unique and everlasting.
I got the opportunity to do my summer internship program in the esteemed organization i.e. “Reliance Money Ltd.” on the topic “Exposure in equity market”. This is amongst the top 3 banking and financial services companies in the private sector.
I would like to thanks to Mr. Sudhanshu Parida, Center manager, for providing me the golden opportunity to undertake my summer internship project in “Reliance Money Ltd.” I also thank Mr. Suresh sahoo, Associate center manager, who was my project guide, for his invaluable support, guidance, inspiration and timely monitoring my activities which has helped me a lot to complete my project and make it a success.
I would like to thanks to Mr. Puneet kansal to guide me and make me clear about the various problem and help me at every step of my project preparation.
I also want to thank all the members of Reliance Money Ltd. for taking pains to explain me everything related to the project and taking time out of their busy working schedule and clearing all my doubts related to the products of the company, thus making it easy for me to learn. I would also like to extend my thanks to “Master School Of Management” for providing me the opportunity to take my internship project in such a reputed organization.
Thank You All
EXECUTIVE SUMMARY
Equity market is a place where one can get a return more then any other investment instrument. It gives return more then any body expectation, simultaneously it is also true that the equity market is the most risky investment option then any other investment instrument.
Many regulative bodies like SEBI and other, and the participant like BSE, NSE, NSDL, CDSL etc. are there just to guide the equity market and to have good control over there. The main objective of all these participant are to protect the interest of investor and to help them to get maximum return from there investment.
Banking institution and other financial institution are also take the benefit of these risk and return in the equity market by the way of advances against the stock, direct investment in stock market etc.
Mutual fund and asset management company are also able to meet the expectation of there unit holder by the help of exposure of equity market. Many reliance mutual fund are invested in equity market more then 60% of its total allocation and able to generate the return more then even index.
Foreign Institutional Investment is also desire to become a part of these equity markets. This helps the economy to make a balance of its currency. Of course there are many rules and regulation on these FIIS investment still the exposure of this equity market attract them and also benefited them.
This report try to cover some exposure towards the equity market, rules and regulation on the equity market, define the regulator body for equity market, discuss some of the financial instrument, try to analyze the risk perception and return expectation of the investor, and try to justify that the equity market is the best investment instrument in comparison to other financial instrument based on return.
TABLE OF CONTENTS
Acknowledgments 3
Abstract/executive summary 4
About my college 6
1. Introduction 7
1.1 Purpose, Scope and Limitations 8
2. Company Analysis
2.1 company history and structure 9
2.2 About Reliance Money Ltd. 11
3. Understanding of financial market 12
4. Meaning of equity 15
5. About the product and charges 18
6. Exposure of banks to equity market 22
7. Mutual fund and its structure 22
8. Exposure of mutual Fund 25
9. Exposure of FII 27
10. Questionnaire and analysis 28
11. Financial Planning 33
12. Conclusion 34
13. References 35
ABOUT MY COLLEGE
Master school of management, an institute approved for conducting full time post-graduate diploma in business management by AICTE, New Delhi, came into being in 1996 as a philanthropic, Non – profit making venture under the aegis of “SIYA RAM KASTURI DEVI” education society comprising of renowned academician, business professional and social activist.
Lush green campus situated at peaceful Shastri Nagar, a posh locality of MEERUT. MSM’s sylvan surroundings are ideal for academician pursuit. A part of the national capital region, and a mere 70 km, from the national capital, which has high concentration of technology growth, output and jobs , Meerut is nonetheless , a very important city of Uttar Pradesh, being one of the largest producers of sports goods, Meerut has witnessed increasing employment opportunity for professionals.
MSM aims to break new grounds in transferring managerial and entrepreneurial skills to its student managers. Its programs aim to provide knowledge and skills through scientifically and specifically designed curriculum, responsible corporate ethics and values are closely allied with formulation and implementation of the programs. MSM endeavors for a regular evaluation, adjustment restructuring and adaptation of its curriculum to keep up with the moving times. Innovative classroom lectures, case study, seminars, quizzes, simulations, debates, projects, industry awareness training, summer training and personality development programs make up for a rigorous grounding in a core subject so that a strong foundation is built in the basic disciplines of management. Much more than student placement, the career development cell at MSM aims at strengthening the student’s foundation to make us capable business manager in long run.
Introduction
Summer training is a very essential part of a management program. It provides us with the valuable exposure to the corporate environment and also tells us how work is done in an organization. Through this a student also learns how to conduct himself in an organization and how to tackle various situations that may arise during his work. These experience help in developing his overall personality and enriches his knowledge base, i.e., practical as well as theoretical.
My institute, MASTER SCHOOL OF MANAGEMENT, has provided us with an opportunity to get such an exposure in big organizations. I have got the opportunity to do my internship project in Reliance Money Ltd., Balasore, and have chosen “EXPOSURE ON EQUITY MARKET” as my project topic. My study will give a brief insight of the workings taking place in Broking Houses related to Stock Exchange, and how the funds of the investors are being managed by the wealth managers.
Stock exchange is a highly organized capital market governed by rules and regulations where listed securities, viz. shares and debentures of private sector, public companies and govt. and quasi-govt. companies are regularly transacted. Hedging, speculation and arbitrage also plays an important part in dealing in stock exchange. India’s growth prospect, globalization, liberalization and economic integration play an important role in attracting investors from abroad too. Stock exchange is the nucleus around which different component of financial market rotates and get nourishment. It is the barometer of national economic health and mirror of national economy. Stock exchange provides necessary inducement in savings. It also provides a ready market for purchase of securities of different companies. It provides a scope for getting the securities liquidated as and when urgency occurs. The private sector public companies virtually depend on the stock exchanges for the procurement of both fixed and working capital by selling shares and debentures. It forms the nucleus around which the investing society rotates and gets nourished. It encourages the savings habit of the people of the society.
Thus, my project consists of the Demat and mutual fund prospect in India; and the organization’s culture and responsiveness towards its existing customers and tries to acquire new clients. So, Reliance Money Ltd. taught me a lot of things on my way to conclusion of my project. It was an experience which would help me a lot in future when I get in the corporate culture.
Purpose
Main objective of the project is to learn the prospect of equity market. The process of dealing with various securities according to different objectives, the various rules and regulations related to the financial market operations, gather knowledge about the whole process. The company has its own trading system, financial analyzers’, brokers etc. Along the way analyzing the processes and assessing if there could be any improvement in such used methods.
Scope of study
In this I have tried to cover the exposure of bank, mutual fund, insurance and foreign institutional investor in equity market. Still there is a further scope of understanding the indirect exposure of FDI, Govt. of India and many other financial institutions on the equity market.
Limitation of the study
I feel that equity market is much volatile then any other market and I feel very difficult to understand the effect or implication of any activity or event in the equity market. Many activity and event compensate each other and there for it became difficult for me to understand whether an activity or event will favour the equity market or it will bring down the market. Again 8 weeks time period is too less to understand the equity market from the depth.
Company analysis
COMPANY BACKGROUND: Reliance Money Ltd. Is introduced by the reliance capital which is part of the Reliance – Anil Dhirubhai Ambani Group (i.e. Reliance ADA’s group).
Reliance Anil Dhirubhai Ambani Group is among India’s top three private sector business houses on all major financial parameters, with a market capitalisation of Rs. 1,00,000 crore (US$ 22 billion), net assets in excess of Rs. 31,500 crore (US$ 7 billion), and net worth to the tune of Rs 27,500 crore (US$ 6 billion).
Now let’s talk about Reliance Capital, Reliance capital Limited (RCL) is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934. RCL was incorporated as a public limited company in 1986 and is now listed on the Bombay Stock Exchange and the National Stock Exchange (India).
It has a net worth of over Rs. 3,300 crore and over 165,000 shareholders. Reliance Capital ranks among the top 3 private sector financial services and banking companies, in terms of net worth.
Reliance Capital has interests in asset management and mutual funds, life and general insurance, private equity and proprietary investments, stock broking, depository services, distribution of financial products, consumer finance and other activities in financial services. So now let us talk about the Reliance Money Ltd.
(The structure of Reliance ADA’s Group is shown on next page)
