Description
My Summer Internship Project
SUMMER INTERNSHIP PROJECT
CUSTOMER PERCEPTION TOWARDS FINANCIAL SERVICES PROVIDER
(A Study on DE-MAT at Monarch Projects and Finemarkets Ltd.)
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR MASTERS IN MANAGEMENT STUDIES (MMS) (2010-2012)
SUBMITTED BY
MALAY DHOLAKIYA
MASTERS IN MANAGEMENT STUDIES ROLL No. 12(MMS-II) BATCH: YEAR 2010 – 2012 H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH,
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MUMBAI 400102
STUDENT’S DECLARATION
I hereby declare that this report submitted in partial fulfillment of the requirement of the award for the MASTERS IN MANAGEMENT STUDIES (MMS) to H.K.Institute of Management Studies and Research is my original work and not submitted for award of any degree or diploma fellowship or for similar titles or prizes. I further certify that I have no objection and grant the rights to H.K.Institute of Management Studies and Research to publish any chapter/ project if they deem fit in Journals/Magazines and newspapers etc. without my permission.
Place Date Name Class
: MUMABAI : : MALAY DHOLAKIYA : MMS II- SEM.-3
Roll No. : 12
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CERTIFICATE
This is to certify that the dissertation submitted in partial fulfillment for the award of MASTERS IN MANAGEMENT STUDIES (MMS) of H K Institute of Management Studies and Research is a result of the bonafide research work carried out by Mr. MALAY DHOLAKIYA under my supervision and guidance, no part of this report has been submitted for award of any other degree, diploma, fellowship or other similar titles or prizes. The work has also not been published in any Journals/Magazines.
Date Place: MUMBAI
Industry guide Company Designation
: Mr. Prashant Mehta : Monarch Group : B.D.M
Proff.Krishna C. Panday. (DIRECTOR) H.K.I.M.S.R
Project Guide
: Proff. Tamojit G. Roy (Core Faculty) H.K.I.M.S.R
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ACKNOWLEDGEMENT
I am very grateful to an UNIVERSITY OF MUMBAI, Director Prof. Krishna C. Pandey and my internal guide and mentor Prof.Tamojit G. Roy believing in me and giving me this opportunity to exhibit my potential throughout the project. Their timely assistant and guidance has helped me to complete my project successfully. They have been very generous in imparting their knowledge and experiences, which will truly help me in my professional as well as personal career. They have indeed been my mentor for this project. In addition, I take the opportunity to thank my external Project guide Mr. Prashant Mehta BUSINESS DEVELOPMENT MANAGER (B.D.M) for introducing me to the concept of Customer Perception towards financial services provider – A study of DE-MAT at MONARCH PROJECTS AND FINEMARKETS LTD. I would like to thank the librarian staff and other faculty membersfor their assistance and valuable suggestions that helped me in formulating this report and gather reliable information from proper study material. I also would like to thank technical staff of the college for their support and coordination. I express my profound gratitude to my parents and friends who knowingly and unknowingly contributed in their own way to make my project complete, and special thanks to my brother Jigar Sangani(D.M. of Future Generally) who continuously guided me throughout this project and share his
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valuable experience.
TABLE OF CONTENT
No. no. CHAPTER 1. CHAPTER 2 : 1.1 : 2.1 : 2.1. 1 : 2.1. 2 : 2.1. 3 EXECUTIVE SUMMARY INTRODUCTION INTRODUCTON TO FINANCIAL SERVICES.
page
6. 8. 9. 18. 22.
INTRODUCTION TO THE DE-MAT ACCOUNT INTRODUCTION TO MONARCH FINEMARKETS OBJECTIVES METHODOLOGY LIMITATIONS ANALYSIS AND FINDINGS CONCLUSION RECOMMENDATIONS ANNEXURE BIBLIOGRAPHY
: 2.2 26. : 2.3 : 2.4 CHAPTER 3 CHAPTER 4 : 3.1 : 4.1 : 4.2 : 4.3 : 4.4
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27. 30. 31. 40. 41. 44. 46.
SUMMER INTERNSHIP PROJECT
EXECUTIVE SUMMARY
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EXECUTIVE SUMMARY
The project titled "Customer Perception towards Financial Services Provider" was undertaken in Monarch Projects Finemarkets Ltd. This company is one of the leading financial services providers company from Gujarat and has lately formed its operations in Mumbai. This project is a research work on how financial services providers are targeting new customers and managing old relationships through various customer oriented activities. The survey also helps in understanding the customer perception towards financial services providers in Mumbai. There are huge numbers of financial services providers today offering varied permutations and combinations of products related to DE-mat service, mutual funds, insurance, derivatives, etc. The financial market and opportunities are growing at a rapid rate in India and Mumbai being the nerve center of financial market, several companies are venturing out in the domain industry. It is a natural process that, as the competition increases the consumer orientation speeds up and the customer gets more options to select from.
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The aim of this project is about analyzing the behavior and reactions of the customer towards the increasing number of financial services providers and analysis the basis on which a customer selects the financial service provider.
INTRODUCTION.
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WHAT IS FINANCIAL SERVICES?
From time immemorial, the phrase "financial services” has been commonly used especially concerning money issues. For better understanding of its meaning, it is important therefore to first understand what finance is. Finance relates to raising of money through issuance and sale of debt or equity. It is a branch of economics whose main goals relate to allocation of resources, management of resources, how the resources are acquired and investments. In general, finance implies interacting with matters that deal with money and the markets. The concept of finance considers time, money and risk and how they relate or interrelate. A service is an equivalent of an economic good that is intangible. The person or firm offering the service boosts the ability, resources skills and or experience to offer a balanced satisfaction of client need while at the same time remaining relevant and functional in an economy. Financial services therefore are those services that are offered by the institutions, which deal with the management of money and other factors that relate to the flow of money in an economy. To clarify on this, a service and the financial service provider possess various characteristics that make the service distinct. For instance, the concept of intangibility also referred to as insubstantiality, perishability as regards to time and reversal of a service, inseparability, simultaneity and variability which refers to the distinctiveness or uniqueness of a given financial service. Following the above discussion, it can be correctly put that a financial service
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refers to those facilities such as savings accounts, leasing, money transfers, checking accounts, confirming among others that are offered by players or organizations in the finance industry. These players include banks, credit unions, stock brokerage firms, insurance firms, and foreign exchange among others. Financial services are many, wide and varied hence many institutions or organizations are involved in offering them. Other well known financial services include debt resolution, private equity, intermediation venture capital conglomerates as well as both private and public equity. The above directly implies that financial services in general relate to all those issues which affect the circulation of money and how they interrelate.
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FINANCIAL SERVICES IN INDIA
In last few years, India has emerged as the one of the most rapidly growing economies in the world. India has been categorized with nations like Brazil, Russia and China (BRIC Nations) who are going to be the prime drivers of world economy in next few decades. Since the time, India first opened its gates to foreign investment (FDI & FII), there has been a complete turnaround. Now the traditional Hindu rate of growth is a thing of past and clocking 8%-9% GDP growth rate is the common norm. India along with other Asian powerhouse China makes for the fastest growing nations in the entire world. Even if we take the case of ongoing global recession, India has managed to perform far better than other nations. Right from banking system to financial regularities, the country has thrived on discipline and out-performance. The booming Indian economy resulted in widespread growth and arrival of new industries. The most sparkling phenomenon is in form of financial market of India. Financial services in India has taken a giant leap from the days of standing in banks queue for several hours for opening a saving account or trying to get some fixed deposits (FD) done. The financial services have increased manifold and now people have the choice to choose the one that most suitably fits the bill. There are several services like broking firms, investment services, financial consulting, evergreen national banks, numerous private banks, mutual funds, car and home loans, equity market and other banking services. Services are many and offered by blue chip names of the industry. Most of the companies in financial segment offer taxation services, project consultancy services and all the services of wide financial gamut. Whether it’s taking a car loan or booking your favorite house, going for pension
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plan or getting your child insured, numerous attractive financial services are available at affordable costs. Personal banking services have acquired an altogether new meaning. Now customers have multiple choices to choose from. One can find all the financial services on the internet that are just a call away. The financial services industry includes firms that deal with the management, investment, transfer, and lending of money. Though every company handles money in the course of doing business, financial institutions actually make money their business; rather than selling a line of physical products, they offer customers their fiscal expertise. The industry itself is very large, encompassing everything from small, local banks to the multinational investment banks regularly featured in news headlines.
WHO ARE THE FINANCIAL SERVICES PROVIDERS?
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“Financial service providers” is a term used to describe all of the different types of businesses similar to a bank. The world of money and banking has become extremely complex, primarily due to hi-tech opportunities. Using just one word “bank” or just “bank account” targets a specific kind of financial service provider and a specific kind of financial service. While banks are the most common type of financial service provider, they are only one part of the entire financial services industry.
CAPITAL MARKET:75 per cent of the turnover.
India has 19 recognizedstock exchanges. The
NSE and the BSE are the main exchanges, with the NSE contributing more than
RETAIL BROKERAGE:-
There are more than 8,000 brokers in
addition to over 75,000 sub-brokers registered with SEBI.
MUTUAL FUND:- Mutual funds in India had assets under management
the tune of US$ 155 billion (INR 7,132 billion) as of September 2010.
NON-BANKING FINANCIAL COMPANIES (NBFCs):-More than
I2,500 NBFCs are registered with the RBI. More than 80 per cent of the equipment hire purchase segment is financed by them.
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MICROFINANCE (MFIs):-
The microfinance segment in India is
witnessing rapid growth. These institutions reach out to the grass-root level and have fewer defaults in comparison to commercial banks.
WHAT ARE THE SERICES PROVIDED BY THE FINANCIAL SERVICES PROVIDERS?
BANKING SERVICES:•
PRIVATE BANKIN :-
Private banks provide banking services
exclusively to high net worth individuals. Many financial services firms require a person or family to have a certain minimum net worth to qualify for private banking services. Private banks often provide more personal services, such as wealth management and tax planning, than normal retail banks.
•
CAPITAL MARKET BANK :-
Bank that underwrite debt and
equity, assist company deals (advisory services, underwriting and advisory fees), and restructure debt into structured finance products.
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•
BANK CARDS :-
include both credit cards and debit cards. Bank
Of America is the largest issuer of bank cards.
•
CREDIT CARD MACHINE SERVICES AND NETWORK:Companies which provide credit card machine and payment networks call themselves "merchant card providers".
FOREIGN EXCHANGE SERVICES:- Foreign include:
•
exchange
services
are
provided by many banks around the world. Foreign exchange services
CURRENCY EXCHANGE:- where clients can purchase and sell foreign currency banknotes.
•
FOREIGN CURRENCY BANKIN:- banking transactions are done in foreign currency.
•
WIRE TRANSFER:- where clients can send funds to international banks abroad.
INVESTMENT SERVICES:•
ASSET MANAGEMENT:-
The term usually given to describe
companies which run collective investment funds. Also refers to services provided by others, generally registered with the Securities and Exchange Commission as Registered Investment Advisors.
•
HEDGE FUND MANAGEMENT:- Hedge funds often employ the services of "prime brokerage" divisions at major investment banks to execute their trades.
•
CUSTODY SERVICES:-
The safe-keeping and processing of the
world's securities trades and servicing the associated portfolios. Assets under custody in the world are approximately $100 trillion. INSURANCE:•
INSURANCE BROKERAGE:-
Insurance
brokers
shop
for
insurance (generally corporate property and casualty insurance) on behalf
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of customers. Recently a number of websites have been created to give consumers basic price comparisons for services such as insurance, causing controversy within the industry.[
•
INSURANCE UNDERWRITING:-
Personal
lines
insurance
underwriters actually underwrite insurance for individuals, a service still offered primarily through agents, insurance brokers, and stock brokers. Underwriters may also offer similar commercial lines of coverage for businesses. Activities include insurance and annuities, life insurance, retirement insurance, health insurance, and property & casualty insurance.
•
REINSURANCE:-
Reinsurance is insurance sold to insurers
themselves, to protect them from catastrophic losses.
OTHER FINANCIAL SERVICES:•
INTERMEDIATION OR ADVISORY SERVICES:-services involve stock brokers (private client services) and discount brokers. Stock brokers assist investors in buying or selling shares. Primarily internet-based companies are often referred to as discount brokerages, although many now have branch offices to assist clients. These brokerages primarily target individual investors. Full service and private client firms primarily assist and execute trades for clients with large amounts of capital to invest, such as large companies, wealthy individuals, and investment management funds.
•
PRIVATE EQUITY
rivate equity funds are typically closed-end funds, which usually take controlling equity stakes in businesses that are either private, or taken private once acquired. Private equity funds often use leveraged buyouts (LBOs) to acquire the firms in which they invest.
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The most successful private equity funds can generate returns significantly higher than provided by the equity markets.
•
VENTURE CAPITAL:- It is a type of private equity capital typically provided by professional, outside investors to new, high-potential-growth companies in the interest of taking the company to an IPO or trade sale of the business.
•
ANGEL INVESTEMENT:-An angel investor or angel (known as a business angel or informal investor in Europe), is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. A small but increasing number of angel investors organize themselves into angel groups or angel networks to share research and pool their investment capital.
•
CONGLOMERATES: -
A financial services conglomerate is a
financial services firm that is active in more than one sector of the financial services market e.g. life insurance, general insurance, health insurance, asset management, retail banking, wholesale banking, investment banking, etc. A key rationale for the existence of such businesses is the existence of diversification benefits that are present when different types of businesses are aggregated i.e. bad things don't always happen at the same time. As a consequence, economic capital for a conglomerate is usually substantially less than economic capital is for the sum of its parts.
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•
DEBT RESOLUTION:-
It is a consumer service that assists
individuals that have too much debt to pay off as requested, but do not want to file bankruptcy and wish to payoff their debts owed. This debt can be accrued in various ways including but not limited to personal loans, credit cards or in some cases merchant accounts. There are many services/companies that can assist with this. These can include debt consolidation, debt settlement and refinancing.
DEMAT ACCOUNT
WHAT IS DEMAT ACCOUNT? DEFINITION: The term Demat, in India, refers to a dematerialized account for individual Indian citizens to trade in listed stocks or debentures, required for investors by The Securities Exchange Board of India (SEBI). In a Demat account, shares and securities are held electronically instead of the investor taking physical possession of certificates. A Demat Account is opened by the investor while registering with an investment broker (or sub broker). The DE mat account number is quoted for all transactions to enable electronic settlements of trades to take place. DE mat account is a safe and 99.9% settlement (of shares) takes place on DE mat mode only. Thus, it is convenient means of holding securities just like a bank account is for funds. Today, practically advisable to have a Beneficiary Owner (BO) account to trade at the exchanges.
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OBJECTIVE OF DEMAT ACCOUNT: India has adopted this system of electronic bookkeeping, eliminating the need for paper when shares or securities are held in electronic form. Before the introduction of the depository system by the Depository Act, 1996, the process of sale, purchase and transfer of shares was difficult and there was a high risk of loss.
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DIFFERENCE BETWEEN BANK ACCOUNT AND DEMAT ACCOUNT
BASIS FORM HOLDING /DEPOSITE USED FOR FACILITIES Safe keeping of money Transfer of money (without actually handling money) WHERE TO OPEN A bank of choice Safe keeping of shares Transfer of shares (without actually handling shares) A DP of choice (can be a bank) REQUIREMENT OF Not Mandatory PAN NUMBER. INTEREST ACCRUAL HOLDING MINIMUM BALANCE REQUIREMENT EITHER SURVIVOR FACILITY
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OF Bank OF Funds
Demat Securities
DIFFERENTIATION
Mandatory (effective from April 01, 2006)
Interest income is ON subject to the applicable rate of interest. AQB* maintenance is specified for certain bank accounts
No interest accruals on securities held in demat account. No such requirement
OR Available
Not available
*AQB - Average Quarterly Balance
BASES OF SIMILARITIES:
SECURITY CONVIENCE Number accounts Transfer deposits
AND Both are very safe and convenient
means of holding deposits/securities of No legal barrier on the number of bank or Demat accounts that can be opened of Funds/securities are transferred only at the instruction of the account holder Physical transfer of money/securities is not involved
(funds or securities) Physical transfer of money/securities
Nomination
Facility
Available
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BENEFITS OF DEMAT ACCOUNT :
1. A safe and convenient way of holding securities (equity and debt instruments both).
2. Transactions involving physical securities are costlier than those
involving dematerialized securities (just like the transactions through a bank teller are costlier than ATM transactions).
3. Securities can be transferred therefore; charges applicable to an investor
are lesser for each transaction. At an instruction immediately.
4. Increased liquidity, as securities can be sold at any time during the
trading hours (between 9:55 AM to 3:30 PM on all working days), and payment can be received in a very short period of time. 5. No stamp duty charges. 6. Risks like forgery, thefts, bad delivery, delays in transfer etc, associated with physical certificates, are eliminated. 7. Pledging of securities in a short period of time. 8. Reduced paper work and transaction cost. 9. Odd-lot shares can also be traded (can be even 1 share). 10.Nomination facility available.. Any change in address or bank account details can be electronically intimated to all companies in which investor holds any securities, without having to inform each of them separately. 11.Securities are transferred by the DP itself, so no need to correspond with the companies
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INTRODUCTION TO COMPANY MONARCH PROJECTS AND FINEMARKETS LTD.
INCEOTION OF THE COMPANY
An Inspired Inception The answer to a prosperous tomorrow lies in the power to decipher the secret that today holds. And it takes a race of great wisdom to read the signs of today, for a better tomorrow. Like the gentle race with wise words, Monarch epitomizes proficiency in predicting accurate outcome of the financial world. The seasoned eye, fixed on the fluctuating market, enables Monarch to advocate and advice about the fruitful times, to reap rich dividends, while forewarning about the rough patches ahead. This makes Monarch the oracle of the financial world. Monarch Group was established in 1993 since then, it has been considered to be one of the most professionally managed organization and a distinguished business house in the field of financial services in Ahmadabad. Over the years we have diversified from pure stock broking services to include the entire gamut of financial services from primary market operations to mutual funds, insurance and Portfolio Management Services to comprehensive financial planning. Over the last 17 years, Monarch has made significant contributions to the development of Ahmadabad business economy in this sector and also Gujarat economy at large. Because of its long standing
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history and dedication to providing the highest standards of financial services, Monarch has become well-known in Gujarat Financial Market and attained a
large portfolio of clientele. The trust placed upon us by our small-size clients and large corporate investors alike has enabled Monarch to preserve its rank among the top 5 financial brokerage companies in Ahmadabad. This rank was preserved not only in terms of daily trading volumes and turnover, but also in terms of the clientele base. Besides our registered office in Mumbai and corporate office in Ahmadabad, we have 36 branches operating across Mumbai, Gujarat and Rajasthan catering to 71000 satisfied clients on a daily basis. In summary, Monarch has won the hearts and minds of many market players from Ahmadabad and neighboring cities.
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HISTORY OF MONARCH GROUP
PHASE 4
? Recently launch the exclusive product PMS (Portfolio Management
Service) in to the market ? Got ISO 9001 : 2008 & ISO 27001 : 2005 Certified ? More than 70000 satisfied clients on daily basis ? Expansion across metro cities in India ? More than 700 sub-brokers PHASE 3 ? Total manpower strength crossed 450 ? More than 50000 clients ? More than 400 sub brokers ? Got status of Non Banking Finance Company PHASE 2 ? Expended across Western Region Got Membership of BSE, NSDL, MCX, NCDEX, NMCE, DGCX ? More than 50000 clients ? More than 400 sub brokers
? Got status of Non-Banking Finance Company
PHASE 1 ? Started at Ahmadabad with very small team of 5 people ? One Branch - 100 clients ? Got Membership of NSE
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VISION AND MISSION OF THE COMPANY
VISION:To be recognized as the most respected and successful financial service organization, anchored on values of:-growth, innovation, trust and diversity.
MISSION:Mission As a leading investment company, providing clients with quality investment solutions and helping them build their financial securities. We will pursue our mission by delivering superior investment performance and services to meet the needs of our stakeholders based on the highest levels of teamwork, efficiency and integrity.
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OBJECTIVES OF THE STUDY:
TO
STUDY
THE
CUSTOMER
PERCEPTION
TOWERDS
FINANCIAL SERVICES PROVIDER OF DE-MAT
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METHODOLOGY:
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METHODOLOGY USED IN THE RESEARCH WORK : In order to achieve the above set of objective, two types of data was necessary Hence the two types of data collected are: I Primary Data
II Secondary Data
SAMPLE SIZE: The size of the sample collected was 120 people. That all the customers were asked to fill the questionnaire and fill free to give the required information and suggestions.
METHOD: The method selected was random to make easy for the researcher. AREA COVERED: The area covered was Churchgate, Dalal Street.
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SCOPE OF THE RESEARCH WORK:
• The scope of the study is limited only to Monarch group at Mumbai. • To develop strong and commendable customer profile for their future reference. • It would enable the Monarch group to build the favorable image in the market.
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LIMITATIONS OF THE STUDY:
?
Sample collected or tested was limited to Dalal Street at churchgate only. The respondents were apprehensive of sharing actual information.
?
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ANALYSIS AND FINDINGS
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QUE:-YOUR ANNUAL INCOME : (Just tick mark your option)
ANS:-from the above graphical representation it can be identify that there are lots of customers whose income is belove rs.400000/- they are more interested to invest their money or their savings in these kind of financial services. Hence if good services at a reasonable prices can attract the customers most.
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QUE:-Which of the financial instruments do you invest into?
ANS:-From the above data we can identify that the most preferable instrument of investment is SHARES. Out of 120 customers there are 54, that is 45% of the customers are investing their money in to share market. Hence in the modern world it becomes the most favorable instrument of investment and there for the share market of India is booming.
There are various options available in the share market to invest, which is also known as equity market. The various options available is mentioned belove:SHARES: • ORDINARY SHARES • PARTLY PAID UP SHARES HYBRID SECURITIES: • PREFERENCE SHARES • CONVERTIBLE SHARES MUTUAL FUND:
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• Income oriented mutual fund • Equity oriented MF • Exchange traded funds DERIVATIVES: • Futures • Options • Warrants DEBT SECURITIES: • Bonds • Debentures. The most common form of share trade on the share market is the ordinary shares, which represents a share in the ownership of the company.
QUE:-
Are you aware of online trading?
ANS:-
As per the modern market trend you can trade
or invest in share market from your home only, if you have a internet facility at home. This facility is very popular in the modern market.
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QUE:-
In which company you have your DEMAT account?
Also mention if more than one?
ANS:-
From the above classification of data it can be identify that out of
120 only 90 that is 75% of the customers disclose this information for their privacy purpose. Also out of this 75% that 90 customers only 20% that is 18 customers mention or disclose the name of their brokers where they have their another account. So, it can be analyzed that the today’s customers are so smart and they are aware of the competition in the market of financial services provider and they know how to take a benefit out of it.
QUE:-
Are you aware of Monarch Fine markets ltd..?
ANS:-Today’s customers are so smart and knowledgeable. They are not ready to accept new things or things which are not so renowned in the market.
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The above data proves the above sentence. Out of 120, only 66 customers that is 55%, knows the Monarch group. But out of that same 120 customers only 11% that is 14 customers having their Demat account with it. Hence, in this world companies have to be customer oriented. They should continuously try to read their customers mind or philosophy so they can do their best to retain their customers.
QUE:-
Are you an active investor?
ANS:-
We can analyze from the above graphical representation that 69%
that is 83 customers are the regular investors and the regular user of the financial services which shows the positivity for the financial services providers and it also gives the idea of customers perception towards financial services providers.
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QUE:-
what is your trading limit at a time?
ANS:100000/-
There are 30% of the customers who are investing more thenRs.
We can identify that people want to invest more and more so that they can get more and more return
CONCLUSION
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• After completing the research work it can be analyzed that the customers perception towards financial services provider is positive.
•
The demand for the financial services and the provider is very high.
• Monarch group is well growing broking firm in the Mumbai's competitive market.
OBSERVATIONS AND RECOMMENDATIONS
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1. The competition among financial services provider is intensifying
and hence new companies like Monarch in the domain should implement organized customer relationship initiatives, including loyalty programmes, referral incentives etc. 2. Free mock sessions should be instituted for college students or young professionals in the early period of their career, such that they could be helped in developing as intelligent investors. 3. Many customers are not aware of Online Trading, so promotional activities on building awareness about Online Trading should be initiated by financial services providers.
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ANNEXURE & BIBLIOGRAPHY
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ANNEXURE
DATE:-________
MONARCH PROJECTS AND FINEMARKETS LTD QUESTIONAIRRE
NAME: - __________________________________________________ ADD: - __________________________________________________ _________________________________________________________ CONTACT NO.: - _________________ AGE E-MAIL:-__________________________________________ OCCUPATION: ____________________________________ YOUR ANNUAL INCOME
Just tick mark your option) 0-4 L 8 L-12 L 4L TO 8 L 12 L TO 15 L
?Which of the financial instruments do you invest into?
? Mutual fund Bonds ? Share Derivatives Others
?Are you aware of online trading?
Yes No
? In which company you have your DEMAT account? Also mention if more than one? _________________________________________________________ _________________________________________________________ ______________________________________________________
• Are you aware of Monarch Fine markets ltd..?
Yes 42 | P a g e SUMMER INTERNSHIP PROJECT No
? From where do you come to know about Monarch Fine markets ltd..?
?Online ads. Phone calls ? Pamphlets ? News paper Executives
• Are you aware and satisfied with the present Products and Services provided by the Monarch Fine markets ltd..?
Yes ? No
• Which product and services do you like most provided by Monarch Fine markets ltd..?
Share Online trading ? Insurance ? E-mail / SMS alerts Mutual fund Payment option
• Give rank between 1 to 5 to below ask questions about Monarch Fine markets ltd.. (1 is average and 5 is excellent )
A).Tips provided.. _______________________ B).Delivery provided.._______________________ C).Payment options.._______________________ D).Response to customer queries.._______________________
• Are you an active investor?
?Yes no
? If yes than what is your trading limit at a time?
? 20000-50000 ? 75001-100000 ? 50001-75000 ? 100001 and more
? Please feel free for any kind of suggestions if any…. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________
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BIBLIOGRAPHY
•
http://business.mapsofindia.com/finance/top-microfinancecompanies-in-india.html http://www.blurtit.com/q680868.html www.google.com http://en.wikipedia.org/wiki/Demat_account
•
• •
• http://www.thewealthwisher.com/2011/07/04/how-to-open-ademat-account-in-india/Monarch Project &Finemarkets Ltd. • CAPITAL MARKETS AND FINANCIAL SERVICESrof. ANIL AGASHE
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doc_344896058.docx
My Summer Internship Project
SUMMER INTERNSHIP PROJECT
CUSTOMER PERCEPTION TOWARDS FINANCIAL SERVICES PROVIDER
(A Study on DE-MAT at Monarch Projects and Finemarkets Ltd.)
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR MASTERS IN MANAGEMENT STUDIES (MMS) (2010-2012)
SUBMITTED BY
MALAY DHOLAKIYA
MASTERS IN MANAGEMENT STUDIES ROLL No. 12(MMS-II) BATCH: YEAR 2010 – 2012 H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH,
1|Page SUMMER INTERNSHIP PROJECT
MUMBAI 400102
STUDENT’S DECLARATION
I hereby declare that this report submitted in partial fulfillment of the requirement of the award for the MASTERS IN MANAGEMENT STUDIES (MMS) to H.K.Institute of Management Studies and Research is my original work and not submitted for award of any degree or diploma fellowship or for similar titles or prizes. I further certify that I have no objection and grant the rights to H.K.Institute of Management Studies and Research to publish any chapter/ project if they deem fit in Journals/Magazines and newspapers etc. without my permission.
Place Date Name Class
: MUMABAI : : MALAY DHOLAKIYA : MMS II- SEM.-3
Roll No. : 12
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CERTIFICATE
This is to certify that the dissertation submitted in partial fulfillment for the award of MASTERS IN MANAGEMENT STUDIES (MMS) of H K Institute of Management Studies and Research is a result of the bonafide research work carried out by Mr. MALAY DHOLAKIYA under my supervision and guidance, no part of this report has been submitted for award of any other degree, diploma, fellowship or other similar titles or prizes. The work has also not been published in any Journals/Magazines.
Date Place: MUMBAI
Industry guide Company Designation
: Mr. Prashant Mehta : Monarch Group : B.D.M
Proff.Krishna C. Panday. (DIRECTOR) H.K.I.M.S.R
Project Guide
: Proff. Tamojit G. Roy (Core Faculty) H.K.I.M.S.R
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ACKNOWLEDGEMENT
I am very grateful to an UNIVERSITY OF MUMBAI, Director Prof. Krishna C. Pandey and my internal guide and mentor Prof.Tamojit G. Roy believing in me and giving me this opportunity to exhibit my potential throughout the project. Their timely assistant and guidance has helped me to complete my project successfully. They have been very generous in imparting their knowledge and experiences, which will truly help me in my professional as well as personal career. They have indeed been my mentor for this project. In addition, I take the opportunity to thank my external Project guide Mr. Prashant Mehta BUSINESS DEVELOPMENT MANAGER (B.D.M) for introducing me to the concept of Customer Perception towards financial services provider – A study of DE-MAT at MONARCH PROJECTS AND FINEMARKETS LTD. I would like to thank the librarian staff and other faculty membersfor their assistance and valuable suggestions that helped me in formulating this report and gather reliable information from proper study material. I also would like to thank technical staff of the college for their support and coordination. I express my profound gratitude to my parents and friends who knowingly and unknowingly contributed in their own way to make my project complete, and special thanks to my brother Jigar Sangani(D.M. of Future Generally) who continuously guided me throughout this project and share his
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valuable experience.
TABLE OF CONTENT
No. no. CHAPTER 1. CHAPTER 2 : 1.1 : 2.1 : 2.1. 1 : 2.1. 2 : 2.1. 3 EXECUTIVE SUMMARY INTRODUCTION INTRODUCTON TO FINANCIAL SERVICES.
page
6. 8. 9. 18. 22.
INTRODUCTION TO THE DE-MAT ACCOUNT INTRODUCTION TO MONARCH FINEMARKETS OBJECTIVES METHODOLOGY LIMITATIONS ANALYSIS AND FINDINGS CONCLUSION RECOMMENDATIONS ANNEXURE BIBLIOGRAPHY
: 2.2 26. : 2.3 : 2.4 CHAPTER 3 CHAPTER 4 : 3.1 : 4.1 : 4.2 : 4.3 : 4.4
5|Page
27. 30. 31. 40. 41. 44. 46.
SUMMER INTERNSHIP PROJECT
EXECUTIVE SUMMARY
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EXECUTIVE SUMMARY
The project titled "Customer Perception towards Financial Services Provider" was undertaken in Monarch Projects Finemarkets Ltd. This company is one of the leading financial services providers company from Gujarat and has lately formed its operations in Mumbai. This project is a research work on how financial services providers are targeting new customers and managing old relationships through various customer oriented activities. The survey also helps in understanding the customer perception towards financial services providers in Mumbai. There are huge numbers of financial services providers today offering varied permutations and combinations of products related to DE-mat service, mutual funds, insurance, derivatives, etc. The financial market and opportunities are growing at a rapid rate in India and Mumbai being the nerve center of financial market, several companies are venturing out in the domain industry. It is a natural process that, as the competition increases the consumer orientation speeds up and the customer gets more options to select from.
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The aim of this project is about analyzing the behavior and reactions of the customer towards the increasing number of financial services providers and analysis the basis on which a customer selects the financial service provider.
INTRODUCTION.
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WHAT IS FINANCIAL SERVICES?
From time immemorial, the phrase "financial services” has been commonly used especially concerning money issues. For better understanding of its meaning, it is important therefore to first understand what finance is. Finance relates to raising of money through issuance and sale of debt or equity. It is a branch of economics whose main goals relate to allocation of resources, management of resources, how the resources are acquired and investments. In general, finance implies interacting with matters that deal with money and the markets. The concept of finance considers time, money and risk and how they relate or interrelate. A service is an equivalent of an economic good that is intangible. The person or firm offering the service boosts the ability, resources skills and or experience to offer a balanced satisfaction of client need while at the same time remaining relevant and functional in an economy. Financial services therefore are those services that are offered by the institutions, which deal with the management of money and other factors that relate to the flow of money in an economy. To clarify on this, a service and the financial service provider possess various characteristics that make the service distinct. For instance, the concept of intangibility also referred to as insubstantiality, perishability as regards to time and reversal of a service, inseparability, simultaneity and variability which refers to the distinctiveness or uniqueness of a given financial service. Following the above discussion, it can be correctly put that a financial service
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refers to those facilities such as savings accounts, leasing, money transfers, checking accounts, confirming among others that are offered by players or organizations in the finance industry. These players include banks, credit unions, stock brokerage firms, insurance firms, and foreign exchange among others. Financial services are many, wide and varied hence many institutions or organizations are involved in offering them. Other well known financial services include debt resolution, private equity, intermediation venture capital conglomerates as well as both private and public equity. The above directly implies that financial services in general relate to all those issues which affect the circulation of money and how they interrelate.
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FINANCIAL SERVICES IN INDIA
In last few years, India has emerged as the one of the most rapidly growing economies in the world. India has been categorized with nations like Brazil, Russia and China (BRIC Nations) who are going to be the prime drivers of world economy in next few decades. Since the time, India first opened its gates to foreign investment (FDI & FII), there has been a complete turnaround. Now the traditional Hindu rate of growth is a thing of past and clocking 8%-9% GDP growth rate is the common norm. India along with other Asian powerhouse China makes for the fastest growing nations in the entire world. Even if we take the case of ongoing global recession, India has managed to perform far better than other nations. Right from banking system to financial regularities, the country has thrived on discipline and out-performance. The booming Indian economy resulted in widespread growth and arrival of new industries. The most sparkling phenomenon is in form of financial market of India. Financial services in India has taken a giant leap from the days of standing in banks queue for several hours for opening a saving account or trying to get some fixed deposits (FD) done. The financial services have increased manifold and now people have the choice to choose the one that most suitably fits the bill. There are several services like broking firms, investment services, financial consulting, evergreen national banks, numerous private banks, mutual funds, car and home loans, equity market and other banking services. Services are many and offered by blue chip names of the industry. Most of the companies in financial segment offer taxation services, project consultancy services and all the services of wide financial gamut. Whether it’s taking a car loan or booking your favorite house, going for pension
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plan or getting your child insured, numerous attractive financial services are available at affordable costs. Personal banking services have acquired an altogether new meaning. Now customers have multiple choices to choose from. One can find all the financial services on the internet that are just a call away. The financial services industry includes firms that deal with the management, investment, transfer, and lending of money. Though every company handles money in the course of doing business, financial institutions actually make money their business; rather than selling a line of physical products, they offer customers their fiscal expertise. The industry itself is very large, encompassing everything from small, local banks to the multinational investment banks regularly featured in news headlines.
WHO ARE THE FINANCIAL SERVICES PROVIDERS?
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“Financial service providers” is a term used to describe all of the different types of businesses similar to a bank. The world of money and banking has become extremely complex, primarily due to hi-tech opportunities. Using just one word “bank” or just “bank account” targets a specific kind of financial service provider and a specific kind of financial service. While banks are the most common type of financial service provider, they are only one part of the entire financial services industry.
CAPITAL MARKET:75 per cent of the turnover.
India has 19 recognizedstock exchanges. The
NSE and the BSE are the main exchanges, with the NSE contributing more than
RETAIL BROKERAGE:-
There are more than 8,000 brokers in
addition to over 75,000 sub-brokers registered with SEBI.
MUTUAL FUND:- Mutual funds in India had assets under management
the tune of US$ 155 billion (INR 7,132 billion) as of September 2010.
NON-BANKING FINANCIAL COMPANIES (NBFCs):-More than
I2,500 NBFCs are registered with the RBI. More than 80 per cent of the equipment hire purchase segment is financed by them.
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MICROFINANCE (MFIs):-
The microfinance segment in India is
witnessing rapid growth. These institutions reach out to the grass-root level and have fewer defaults in comparison to commercial banks.
WHAT ARE THE SERICES PROVIDED BY THE FINANCIAL SERVICES PROVIDERS?
BANKING SERVICES:•
PRIVATE BANKIN :-
Private banks provide banking services
exclusively to high net worth individuals. Many financial services firms require a person or family to have a certain minimum net worth to qualify for private banking services. Private banks often provide more personal services, such as wealth management and tax planning, than normal retail banks.
•
CAPITAL MARKET BANK :-
Bank that underwrite debt and
equity, assist company deals (advisory services, underwriting and advisory fees), and restructure debt into structured finance products.
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•
BANK CARDS :-
include both credit cards and debit cards. Bank
Of America is the largest issuer of bank cards.
•
CREDIT CARD MACHINE SERVICES AND NETWORK:Companies which provide credit card machine and payment networks call themselves "merchant card providers".
FOREIGN EXCHANGE SERVICES:- Foreign include:
•
exchange
services
are
provided by many banks around the world. Foreign exchange services
CURRENCY EXCHANGE:- where clients can purchase and sell foreign currency banknotes.
•
FOREIGN CURRENCY BANKIN:- banking transactions are done in foreign currency.
•
WIRE TRANSFER:- where clients can send funds to international banks abroad.
INVESTMENT SERVICES:•
ASSET MANAGEMENT:-
The term usually given to describe
companies which run collective investment funds. Also refers to services provided by others, generally registered with the Securities and Exchange Commission as Registered Investment Advisors.
•
HEDGE FUND MANAGEMENT:- Hedge funds often employ the services of "prime brokerage" divisions at major investment banks to execute their trades.
•
CUSTODY SERVICES:-
The safe-keeping and processing of the
world's securities trades and servicing the associated portfolios. Assets under custody in the world are approximately $100 trillion. INSURANCE:•
INSURANCE BROKERAGE:-
Insurance
brokers
shop
for
insurance (generally corporate property and casualty insurance) on behalf
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of customers. Recently a number of websites have been created to give consumers basic price comparisons for services such as insurance, causing controversy within the industry.[
•
INSURANCE UNDERWRITING:-
Personal
lines
insurance
underwriters actually underwrite insurance for individuals, a service still offered primarily through agents, insurance brokers, and stock brokers. Underwriters may also offer similar commercial lines of coverage for businesses. Activities include insurance and annuities, life insurance, retirement insurance, health insurance, and property & casualty insurance.
•
REINSURANCE:-
Reinsurance is insurance sold to insurers
themselves, to protect them from catastrophic losses.
OTHER FINANCIAL SERVICES:•
INTERMEDIATION OR ADVISORY SERVICES:-services involve stock brokers (private client services) and discount brokers. Stock brokers assist investors in buying or selling shares. Primarily internet-based companies are often referred to as discount brokerages, although many now have branch offices to assist clients. These brokerages primarily target individual investors. Full service and private client firms primarily assist and execute trades for clients with large amounts of capital to invest, such as large companies, wealthy individuals, and investment management funds.
•
PRIVATE EQUITY
rivate equity funds are typically closed-end funds, which usually take controlling equity stakes in businesses that are either private, or taken private once acquired. Private equity funds often use leveraged buyouts (LBOs) to acquire the firms in which they invest.16 | P a g e SUMMER INTERNSHIP PROJECT
The most successful private equity funds can generate returns significantly higher than provided by the equity markets.
•
VENTURE CAPITAL:- It is a type of private equity capital typically provided by professional, outside investors to new, high-potential-growth companies in the interest of taking the company to an IPO or trade sale of the business.
•
ANGEL INVESTEMENT:-An angel investor or angel (known as a business angel or informal investor in Europe), is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. A small but increasing number of angel investors organize themselves into angel groups or angel networks to share research and pool their investment capital.
•
CONGLOMERATES: -
A financial services conglomerate is a
financial services firm that is active in more than one sector of the financial services market e.g. life insurance, general insurance, health insurance, asset management, retail banking, wholesale banking, investment banking, etc. A key rationale for the existence of such businesses is the existence of diversification benefits that are present when different types of businesses are aggregated i.e. bad things don't always happen at the same time. As a consequence, economic capital for a conglomerate is usually substantially less than economic capital is for the sum of its parts.
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•
DEBT RESOLUTION:-
It is a consumer service that assists
individuals that have too much debt to pay off as requested, but do not want to file bankruptcy and wish to payoff their debts owed. This debt can be accrued in various ways including but not limited to personal loans, credit cards or in some cases merchant accounts. There are many services/companies that can assist with this. These can include debt consolidation, debt settlement and refinancing.
DEMAT ACCOUNT
WHAT IS DEMAT ACCOUNT? DEFINITION: The term Demat, in India, refers to a dematerialized account for individual Indian citizens to trade in listed stocks or debentures, required for investors by The Securities Exchange Board of India (SEBI). In a Demat account, shares and securities are held electronically instead of the investor taking physical possession of certificates. A Demat Account is opened by the investor while registering with an investment broker (or sub broker). The DE mat account number is quoted for all transactions to enable electronic settlements of trades to take place. DE mat account is a safe and 99.9% settlement (of shares) takes place on DE mat mode only. Thus, it is convenient means of holding securities just like a bank account is for funds. Today, practically advisable to have a Beneficiary Owner (BO) account to trade at the exchanges.
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OBJECTIVE OF DEMAT ACCOUNT: India has adopted this system of electronic bookkeeping, eliminating the need for paper when shares or securities are held in electronic form. Before the introduction of the depository system by the Depository Act, 1996, the process of sale, purchase and transfer of shares was difficult and there was a high risk of loss.
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DIFFERENCE BETWEEN BANK ACCOUNT AND DEMAT ACCOUNT
BASIS FORM HOLDING /DEPOSITE USED FOR FACILITIES Safe keeping of money Transfer of money (without actually handling money) WHERE TO OPEN A bank of choice Safe keeping of shares Transfer of shares (without actually handling shares) A DP of choice (can be a bank) REQUIREMENT OF Not Mandatory PAN NUMBER. INTEREST ACCRUAL HOLDING MINIMUM BALANCE REQUIREMENT EITHER SURVIVOR FACILITY
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OF Bank OF Funds
Demat Securities
DIFFERENTIATION
Mandatory (effective from April 01, 2006)
Interest income is ON subject to the applicable rate of interest. AQB* maintenance is specified for certain bank accounts
No interest accruals on securities held in demat account. No such requirement
OR Available
Not available
*AQB - Average Quarterly Balance
BASES OF SIMILARITIES:
SECURITY CONVIENCE Number accounts Transfer deposits
AND Both are very safe and convenient
means of holding deposits/securities of No legal barrier on the number of bank or Demat accounts that can be opened of Funds/securities are transferred only at the instruction of the account holder Physical transfer of money/securities is not involved
(funds or securities) Physical transfer of money/securities
Nomination
Facility
Available
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BENEFITS OF DEMAT ACCOUNT :
1. A safe and convenient way of holding securities (equity and debt instruments both).
2. Transactions involving physical securities are costlier than those
involving dematerialized securities (just like the transactions through a bank teller are costlier than ATM transactions).
3. Securities can be transferred therefore; charges applicable to an investor
are lesser for each transaction. At an instruction immediately.
4. Increased liquidity, as securities can be sold at any time during the
trading hours (between 9:55 AM to 3:30 PM on all working days), and payment can be received in a very short period of time. 5. No stamp duty charges. 6. Risks like forgery, thefts, bad delivery, delays in transfer etc, associated with physical certificates, are eliminated. 7. Pledging of securities in a short period of time. 8. Reduced paper work and transaction cost. 9. Odd-lot shares can also be traded (can be even 1 share). 10.Nomination facility available.. Any change in address or bank account details can be electronically intimated to all companies in which investor holds any securities, without having to inform each of them separately. 11.Securities are transferred by the DP itself, so no need to correspond with the companies
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INTRODUCTION TO COMPANY MONARCH PROJECTS AND FINEMARKETS LTD.
INCEOTION OF THE COMPANY
An Inspired Inception The answer to a prosperous tomorrow lies in the power to decipher the secret that today holds. And it takes a race of great wisdom to read the signs of today, for a better tomorrow. Like the gentle race with wise words, Monarch epitomizes proficiency in predicting accurate outcome of the financial world. The seasoned eye, fixed on the fluctuating market, enables Monarch to advocate and advice about the fruitful times, to reap rich dividends, while forewarning about the rough patches ahead. This makes Monarch the oracle of the financial world. Monarch Group was established in 1993 since then, it has been considered to be one of the most professionally managed organization and a distinguished business house in the field of financial services in Ahmadabad. Over the years we have diversified from pure stock broking services to include the entire gamut of financial services from primary market operations to mutual funds, insurance and Portfolio Management Services to comprehensive financial planning. Over the last 17 years, Monarch has made significant contributions to the development of Ahmadabad business economy in this sector and also Gujarat economy at large. Because of its long standing
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history and dedication to providing the highest standards of financial services, Monarch has become well-known in Gujarat Financial Market and attained a
large portfolio of clientele. The trust placed upon us by our small-size clients and large corporate investors alike has enabled Monarch to preserve its rank among the top 5 financial brokerage companies in Ahmadabad. This rank was preserved not only in terms of daily trading volumes and turnover, but also in terms of the clientele base. Besides our registered office in Mumbai and corporate office in Ahmadabad, we have 36 branches operating across Mumbai, Gujarat and Rajasthan catering to 71000 satisfied clients on a daily basis. In summary, Monarch has won the hearts and minds of many market players from Ahmadabad and neighboring cities.
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HISTORY OF MONARCH GROUP
PHASE 4
? Recently launch the exclusive product PMS (Portfolio Management
Service) in to the market ? Got ISO 9001 : 2008 & ISO 27001 : 2005 Certified ? More than 70000 satisfied clients on daily basis ? Expansion across metro cities in India ? More than 700 sub-brokers PHASE 3 ? Total manpower strength crossed 450 ? More than 50000 clients ? More than 400 sub brokers ? Got status of Non Banking Finance Company PHASE 2 ? Expended across Western Region Got Membership of BSE, NSDL, MCX, NCDEX, NMCE, DGCX ? More than 50000 clients ? More than 400 sub brokers
? Got status of Non-Banking Finance Company
PHASE 1 ? Started at Ahmadabad with very small team of 5 people ? One Branch - 100 clients ? Got Membership of NSE
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VISION AND MISSION OF THE COMPANY
VISION:To be recognized as the most respected and successful financial service organization, anchored on values of:-growth, innovation, trust and diversity.
MISSION:Mission As a leading investment company, providing clients with quality investment solutions and helping them build their financial securities. We will pursue our mission by delivering superior investment performance and services to meet the needs of our stakeholders based on the highest levels of teamwork, efficiency and integrity.
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OBJECTIVES OF THE STUDY:
TO
STUDY
THE
CUSTOMER
PERCEPTION
TOWERDS
FINANCIAL SERVICES PROVIDER OF DE-MAT
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METHODOLOGY:
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METHODOLOGY USED IN THE RESEARCH WORK : In order to achieve the above set of objective, two types of data was necessary Hence the two types of data collected are: I Primary Data
II Secondary Data
SAMPLE SIZE: The size of the sample collected was 120 people. That all the customers were asked to fill the questionnaire and fill free to give the required information and suggestions.
METHOD: The method selected was random to make easy for the researcher. AREA COVERED: The area covered was Churchgate, Dalal Street.
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SCOPE OF THE RESEARCH WORK:
• The scope of the study is limited only to Monarch group at Mumbai. • To develop strong and commendable customer profile for their future reference. • It would enable the Monarch group to build the favorable image in the market.
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LIMITATIONS OF THE STUDY:
?
Sample collected or tested was limited to Dalal Street at churchgate only. The respondents were apprehensive of sharing actual information.
?
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ANALYSIS AND FINDINGS
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QUE:-YOUR ANNUAL INCOME : (Just tick mark your option)
ANS:-from the above graphical representation it can be identify that there are lots of customers whose income is belove rs.400000/- they are more interested to invest their money or their savings in these kind of financial services. Hence if good services at a reasonable prices can attract the customers most.
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QUE:-Which of the financial instruments do you invest into?
ANS:-From the above data we can identify that the most preferable instrument of investment is SHARES. Out of 120 customers there are 54, that is 45% of the customers are investing their money in to share market. Hence in the modern world it becomes the most favorable instrument of investment and there for the share market of India is booming.
There are various options available in the share market to invest, which is also known as equity market. The various options available is mentioned belove:SHARES: • ORDINARY SHARES • PARTLY PAID UP SHARES HYBRID SECURITIES: • PREFERENCE SHARES • CONVERTIBLE SHARES MUTUAL FUND:
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• Income oriented mutual fund • Equity oriented MF • Exchange traded funds DERIVATIVES: • Futures • Options • Warrants DEBT SECURITIES: • Bonds • Debentures. The most common form of share trade on the share market is the ordinary shares, which represents a share in the ownership of the company.
QUE:-
Are you aware of online trading?
ANS:-
As per the modern market trend you can trade
or invest in share market from your home only, if you have a internet facility at home. This facility is very popular in the modern market.
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QUE:-
In which company you have your DEMAT account?
Also mention if more than one?
ANS:-
From the above classification of data it can be identify that out of
120 only 90 that is 75% of the customers disclose this information for their privacy purpose. Also out of this 75% that 90 customers only 20% that is 18 customers mention or disclose the name of their brokers where they have their another account. So, it can be analyzed that the today’s customers are so smart and they are aware of the competition in the market of financial services provider and they know how to take a benefit out of it.
QUE:-
Are you aware of Monarch Fine markets ltd..?
ANS:-Today’s customers are so smart and knowledgeable. They are not ready to accept new things or things which are not so renowned in the market.
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The above data proves the above sentence. Out of 120, only 66 customers that is 55%, knows the Monarch group. But out of that same 120 customers only 11% that is 14 customers having their Demat account with it. Hence, in this world companies have to be customer oriented. They should continuously try to read their customers mind or philosophy so they can do their best to retain their customers.
QUE:-
Are you an active investor?
ANS:-
We can analyze from the above graphical representation that 69%
that is 83 customers are the regular investors and the regular user of the financial services which shows the positivity for the financial services providers and it also gives the idea of customers perception towards financial services providers.
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QUE:-
what is your trading limit at a time?
ANS:100000/-
There are 30% of the customers who are investing more thenRs.
We can identify that people want to invest more and more so that they can get more and more return
CONCLUSION
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• After completing the research work it can be analyzed that the customers perception towards financial services provider is positive.
•
The demand for the financial services and the provider is very high.
• Monarch group is well growing broking firm in the Mumbai's competitive market.
OBSERVATIONS AND RECOMMENDATIONS
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1. The competition among financial services provider is intensifying
and hence new companies like Monarch in the domain should implement organized customer relationship initiatives, including loyalty programmes, referral incentives etc. 2. Free mock sessions should be instituted for college students or young professionals in the early period of their career, such that they could be helped in developing as intelligent investors. 3. Many customers are not aware of Online Trading, so promotional activities on building awareness about Online Trading should be initiated by financial services providers.
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ANNEXURE & BIBLIOGRAPHY
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ANNEXURE
DATE:-________
MONARCH PROJECTS AND FINEMARKETS LTD QUESTIONAIRRE
NAME: - __________________________________________________ ADD: - __________________________________________________ _________________________________________________________ CONTACT NO.: - _________________ AGE E-MAIL:-__________________________________________ OCCUPATION: ____________________________________ YOUR ANNUAL INCOME
Just tick mark your option) 0-4 L 8 L-12 L 4L TO 8 L 12 L TO 15 L?Which of the financial instruments do you invest into?
? Mutual fund Bonds ? Share Derivatives Others
?Are you aware of online trading?
Yes No
? In which company you have your DEMAT account? Also mention if more than one? _________________________________________________________ _________________________________________________________ ______________________________________________________
• Are you aware of Monarch Fine markets ltd..?
Yes 42 | P a g e SUMMER INTERNSHIP PROJECT No
? From where do you come to know about Monarch Fine markets ltd..?
?Online ads. Phone calls ? Pamphlets ? News paper Executives
• Are you aware and satisfied with the present Products and Services provided by the Monarch Fine markets ltd..?
Yes ? No
• Which product and services do you like most provided by Monarch Fine markets ltd..?
Share Online trading ? Insurance ? E-mail / SMS alerts Mutual fund Payment option
• Give rank between 1 to 5 to below ask questions about Monarch Fine markets ltd.. (1 is average and 5 is excellent )
A).Tips provided.. _______________________ B).Delivery provided.._______________________ C).Payment options.._______________________ D).Response to customer queries.._______________________
• Are you an active investor?
?Yes no
? If yes than what is your trading limit at a time?
? 20000-50000 ? 75001-100000 ? 50001-75000 ? 100001 and more
? Please feel free for any kind of suggestions if any…. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________
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BIBLIOGRAPHY
•
http://business.mapsofindia.com/finance/top-microfinancecompanies-in-india.html http://www.blurtit.com/q680868.html www.google.com http://en.wikipedia.org/wiki/Demat_account
•
• •
• http://www.thewealthwisher.com/2011/07/04/how-to-open-ademat-account-in-india/Monarch Project &Finemarkets Ltd. • CAPITAL MARKETS AND FINANCIAL SERVICES
rof. ANIL AGASHE44 | P a g e SUMMER INTERNSHIP PROJECT
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