crm

1. CUSTOMER RELATIONSHIP
MANAGEMENT
(Summer Internship Project)
{May-June 2009}
For
Submitted By: -
Tushar H Sevak (Roll No. F-52)
Mohit M. Bhendarkar (Roll No. D- 08)
Under the Guidance of :
Mr. Jicky Thomas (Product & Branch Head)
Institute of Business Management & Research
8/182, Sunrise Park, Near ASIA School, Driven In Road, Ahmedabad - 380054.
Ph. : 079-26858717 / 40052917
Email : Ahmedabad@ibmrindia.org website : www.ibmrindia.org
1

2. INDEX
Particular Page No.
1. Introduction of the CRM 5
2. Objective of the CRM 16
3. Research Methodology 19
4. Literature Review 24
 Training 42
 Importance & Needs of
Training
42
 Types of Training
 Methods of Training 43
 Recommendation &
Conclusion
46
 Training Adopted by us at
Angel
47
 Training Under Different
Departments
48
 Problems Faced at the Time
of Training
50
 Suggestions to Improve 51
5. Industry Analysis
 Industry Analysis at Indian
Level
51
 Past Performance 62
 SWOT Analysis 69
 Major Players in the Industry 76
 Products & Services 80
6. Data Analysis 87
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3. 7. Limitations 94
8. Findings 95
9. Suggestions 97
10.Bibliography 98
Preface
The Summer program offered by the IBMR College, is an
enlightening course for those who are wishing to master their Business
administration skills, with their knowledge. This is an unique course
which is the collaboration of MBA. It not only developes your
management talent but also develop your technical skill. It imparts the
necessary theoretical knowledge about the field but also provides an
opportunity to practically experience the application of the business
administration fundamentals in the corporate as well as the non-
corporate sector.
I was unaware about the role of exchanges and depositories in
the secondary market. Here I really got practical knowledge about the
role of SEBI, NSE, and BSE etc. in the secondary market. Now I am
aware about the buying and selling system in the secondary market
through broking firm or sub-broker. I am very much thankful to Mr.
Jicky Thomas, Branch & Product Head, main branch Mahalaya complex
C. G. Road, Ahmedabad.
I therefore have pleasure to present my training report, which, I
hope as per the curriculum requirements.
Acknowledgement
“There is no such thing as a self made man, we all are made up
thousands of others” – George Adams.
3

4. I am indebted to my faculty, the Faculty of Social Work for
providing the students an opportunity to experience the practical
working of the knowledge imparted to us theoretically.
I am grateful to Angel Broking Limited for allowing me to
undertake my summer training in the organization. To mention, I would
like to extend my gratitude towards-
Mr. Harshit Bhavsar (Business Development Head)
Mr. Viral Kapadia (Business Development Manager)
They helped me during my entire training program. I would also
like to thank Mr. Jicky Thomas and Mrs. Pankti shah who facilitated
me in my practical learning.
Introduction to CRM
4

5. Before we begin to examine the conceptual foundations of CRM,
it will be useful to define, what is CRM? A narrow perspective of
customer relationship management is database marketing
emphasizing the promotional aspects of marketing linked to database
efforts. Another narrow, yet relevant, viewpoint is to consider CRM
only as customer retention in which a variety of after marketing
tactics is used for customer bonding or staying in touch after the sale
is made. Shani and Chalasani define relationship marketing as “an
integrated effort to identify, maintain, and build up a network with
individuals consumers and to continuously strengthen the network
for mutual benefit of both sides, through interactive, individualized
and value-added contacts over a period of time”. The core theme of all
CRM and relationship marketing perspectives is its focus on co-
operative and collaborative relationships between the firm and its
customers, and/or other marketing actors.
CRM is based on the premise that, by having a better
understanding of the customers’ needs and desires we can keep them
longer and sell more to them.
Growth Strategies International (GSI) performed a statistical
analysis of Customer satisfaction data encompassing the findings of
over 7,000+ customer surveys conducted by Angel Broking Ltd.
CRM (customer relationship management) is an information
industry term for methodologies, software, and usually Internet
capabilities that help an enterprise manage customer relationships in
an organized way. For example, an enterprise might build a database
about its customers that described relationships in sufficient detail so
that management, salespeople, people providing service, and perhaps
the customer directly could access information, match customer
needs with product plans and offerings, remind customers of service
requirements, know what other products a customer had purchased,
and so forth.
The essence of the information technology revolution and, in
particular, the World Wide Web is the opportunity to build better
relationships with customers than has been previously possible in the
offline world. By combining the abilities to respond directly to
customer requests and to provide the customer with a highly
5

6. interactive, customized experience, companies have a greater ability
today to establish, nurture, and sustain long-term customer
relationships than ever before. The ultimate goal is to transform these
relationships into greater profitability by increasing repeat purchase
rates and reducing customer acquisition costs. Indeed, this revolution
in customer relationship management or CRM.1 as it is called, has
been referred to as the new “mantra” of marketing.2 Companies like
Siebel, E.piphany, Oracle, Broadvision, Net Perceptions, Kana and
others have filled this CRM space with products that do everything
from track customer behavior on the Web to predicting their future
moves to sending direct e-mail communications. This has created a
worldwide market for CRM products and services of $34 billion in
1999 and which is forecasted by IDC to grow to $125 billion by 2004.3
The need to better understand customer behavior and focus on those
customers who can deliver long-term profits has changed how
marketers view the world.
Traditionally, marketers have been trained to acquire
customers, either new ones who have not bought the product category
before or those who are currently competitors’ customers. This has
required heavy doses of mass advertising and price-oriented
promotions to customers and channel members. Today, the tone of
the conversation has changed from customer acquisition to retention.
This requires a different mindset and a 3 different and new set of
tools. A good thought experiment for an executive audience is to ask
them how much they spend and/or focus on acquisition versus
retention activities.
While it is difficult to perfectly distinguish the two activities
from each other, the answer is usually that acquisition dominates
retention.
According to one industry view, CRM consists of:
 Helping an enterprise to enable its marketing departments to
identify and target their best customers, manage marketing
6

7. campaigns with clear goals and objectives, and generate quality
leads for the sales team.
 Assisting the organization to improve telesales, account, and
sales management by optimizing information shared by
multiple employees, and streamlining existing processes (for
example, taking orders using mobile devices)
 Allowing the formation of individualized relationships with
customers, with the aimof improving customer satisfaction and
maximizing profits; identifying the most profitable customers
and providing them the highest level of service.
 Providing employees with the information and processes
necessary to know their customers, understand their needs, and
effectively build relationships between the company, its
customer base, and distribution partners.
CRM--Customer Relationship Management--has entered the
mainstream. Despite the uncertainty of the economy, CRM is being
thrust into corporate budgets and talked about as a critical initiative
by hundreds of Fortune 1,000 and tens of thousands of other
companies. It has gone from being an important edge in the business
world to a necessary tool for survival. The notion of the customer as
king or queen is once again the rule. How you treat this is a mission-
critical business issue.
But, what is CRM and how does it change the way companies do
business? The changes in the world have been so dynamic and so
dramatic that the path is not necessarily all that obvious. How CRM
impacts that business path is a continuing source of debate in the
world of corporate management.
Managing relationships with customers has become a critical
organizational competency. Get winning strategies for acquiring and
retaining customers by leveraging the latest advanced technologies.
This course will teach you how to select the right tools for your
business-- so it can grow today--and on into the future. Lagging
means lost customers, which means damage to the bottom line. But
how do you not lag when customers are moving lightning fast to
demand constant changes in the speed to complete their
7

8. transactions? How do you keep your customers when the move to
another company is nothing more than a mouse click and a minute
away?
CRM is the answer. Customer Relationship Management, a
strategy that leverages very advanced technologies is the way to cut to
the 21st Century business chase.
History of CRM
Customer Relationship Management (CRM) is one of those
magnificent concepts that swept the business world in the 1990’s with
the promise of forever changing the way businesses small and large
interacted with their customer bases. In the short term, however, it
proved to be an unwieldy process that was better in theory than in
practice for a variety of reasons. First among these was that it was
simply so difficult and expensive to track and keep the high volume of
8

9. records needed accurately and constantly update them. In the last
several years, however, newer software systems and advanced
tracking features have vastly improved CRM capabilities and the real
promise of CRM is becoming a reality. As the price of newer, more
customizable Internet solutions have hit the marketplace;
competition has driven the prices down so that even relatively small
businesses are reaping the benefits of some custom CRM programs.
In the beginning…
The 1980’s saw the emergence of database marketing, which
was simply a catch phrase to define the practice of setting up
customer service groups to speak individually to all of a company’s
customers. In the case of larger, key clients it was a valuable tool for
keeping the lines of communication open and tailoring service to the
clients needs. In the case of smaller clients, however, it tended to
provide repetitive, survey-like information that cluttered databases
and didn’t provide much insight. As companies began tracking
database information, they realized that the bare bones were all that
was needed in most cases: what they buy regularly, what they spend,
what they do.
Advances in the 1990’s
In the 1990’s companies began to improve on Customer
Relationship Management by making it more of a two-way street.
Instead of simply gathering data for their own use, they began giving
back to their customers not only in terms of the obvious goal of
improved customer service, but in incentives, gifts and other perks for
customer loyalty. This was the beginning of the now familiar frequent
flyer programs, bonus points on credit cards and a host of other
resources that are based on CRM tracking 3333 customer activity and
spending patterns. CRM was now being used as a way to increase
sales passively as well as through active improvement of customer
service.
True CRM comes of age
9

10. Real Customer Relationship Management as it’s thought of
today really began in earnest in the early years of this century. As
software companies began releasing newer, more advanced solutions
that were customizable across industries, it became feasible to really
use the information in a dynamic way. Instead of feeding information
into a static database for future reference, CRM became a way to
continuously update understanding of customer needs and behavior.
Branching of information, sub-folders, and custom tailored features
enabled companies to break down information into smaller subsets so
that they could evaluate not only concrete statistics, but information
on the motivation and reactions of customers. The Internet provided
a huge boon to the development of these huge databases by enabling
offsite information storage, where before companies had difficulty
supporting the enormous amounts of information. The Internet
provided new possibilities and CRM took off as providers began
moving toward Internet solutions. With the increased fluidity of these
programs came a less rigid relationship between sales, customer
service and marketing. CRM enabled the development of new
strategies for more cooperative work between these different
divisions through shared information and understanding, leading to
increased customer satisfaction from order to end product.
Today, CRM is still utilized most frequently by companies that
rely heavily on two distinct features: customer service or technology.
The three sectors of business that rely most heavily on CRM -- and
use it to great advantage -- are financial services, a variety of high
tech corporations and the telecommunications industry. The financial
services industry in particular tracks the level of client satisfaction
and what customers are looking for in terms of changes and
personalized features. They also track changes in investment habits
and spending patterns as the economy shifts. Software specific to the
industry can give financial service providers truly impressive
feedback in these areas.
In recent years however, several factors have contributed to the
rapid development and evolution of CRM. These include: -
1. The growing de-intermediation process in many industries due to
the advent of sophisticated computer and telecommunication
technologies that allow producers to directly interact with end-
10

11. customers. For example, in many industries such as airlines, banks
insurance, software or household appliances and even consumables,
the de-intermediation process is fast changing the nature of
marketing and consequently making relationship marketing more
popular. Databases and direct marketing tools give them the means to
individualize their marketing efforts.
2. Advances in information technology, networking and
manufacturing technology have helped companies to quickly match
competition. As a result product quality and cost are no longer
significant competitive advantages.
3. The growth in service economy. Since services are typically
produced and delivered at the same institution, it minimizes the role
of the middlemen.
4. Another force driving the adoption of CRM has been the total
quality movement. When companies embraced TQM it became
necessary to involve customers and suppliers in implementing the
program at all levels of the value chain. This needed close working
relationships with the customers. Thus several companies such as
Motorola, IBM, General Motors, Xerox, Ford, Toyota, etc formed
partnering relations with suppliers and customers to practice TQM.
Other programs such as JIT and MRP also made use of
interdependent relationships between suppliers and customers.
5. Customer expectations are changing almost on a daily basis. Newly
empowered customers, who choose, how to communicate with the
companies’ various available channels? Also nowadays consumers
expect a high degree of personalization.
6. Emerging real time, interactive channels including e-mail, ATMs
and call centre that must be synchronized with customer’s non-
electronic activities. The speed of business change, requiring
flexibility and rapid adoption to technologies.
7. In the current era of hyper competition, marketers are forced to be
more concerned with customer retention and customer loyalty.
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12. 8. As several researches have found out retaining customers is less
expensive and more sustainable competitive advantage than
acquiring new ones.
9. On the supply side it pays more to develop closer relationships with
a few suppliers than to develop more vendors.
10. The globalization of world marketplace makes it necessary to
have global account management for the customers.
Definition: -
“CRM is concerned with creating improved shareholder value
through the use of customer centric business processes and the
development of appropriate relationships with consumers.”
Implementing CRM:
CRM requires an integration of a firm's resources; people,
operations and marketing capabilities to deliver added value to the
customers. CRM should provide businesses and organizations with a
‘single view’ of their customers and across irrespective of the
interactive channel or medium through which the customer accesses
the service or product. For example, a business (e.g. hotel) customer’s
profile and personal references should be accessible to the business
(or hotel) irrespective of channel i.e. whether the customer books
online, calls in or walks into any location should not make a
difference to the service provided based on the personal profile of the
business client.
It is enabled through:
 Information
 Processes
 Technology
 Applications
12

13. A firm that wants to implement CRM must align it's business
processes cross-functionally in the best possible way to allow
increased customer focus with an aim to deliver added value to the
customer.
To implement CRM, the following steps must be followed:
 Develop a CRM framework
 Align current business processes
 Design new cross-functional business processes (where
required)
 Develop Functional Specifications (client-side services)
 Develop Technical Specifications
 Match Technical Specifications to available technology
(Systems, software, etc)
 Product Configuration
 Data Migration and Integration
 Staff Training
 Customer Segmentation: For CRM to be effective, the
organization’s customer base must be stratified into segments
based on commonalities amongst groups’ of individuals and
customers. This also requires the organization to have strategies
to target consolidated customer segments.
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14.  Reduced Cost of Service: a customer relationship strategy
should reduce the cost of service for both the organization and
it’s customers and increase satisfaction levels.
 Service as a differentiator: The more competitive a market
becomes the more a business will need to rely on its superior
product quality and quality of service to differentiate itself from
other businesses and providers.
 Tie-in’s over time: The greater the effort a customer spends on
a relationship over time, the greater the customer’s stake in
helping to ensure that the relationship works and the more
convenient and loyal the customer becomes.
Pitfalls to avoid:
Many CRM programs fail for two reasons:
1. Lack of supportive business processes: Because business
processes and organizational goals are not part of a strategic
CRM plan tied to organizational goals and objectives.
2. Lack of an enterprise perspective: For Relationship Marketing
to be effective, it requires that the organization creates a
seamless enterprise view. A lot of CRM programs fail because
they are assembled with disparate components that aren't
designed to work together as part of a complete CRM system
designed to meet organizational objectives.
14

15. Customer Relationship Management
Model
15
CREATE A DATA BASE
ANALYSIS
CUSTOMER SELECTION
CUSTOMER TARGETING
RELATIONSHIP MARKETING
PRIVACY ISSUES
METRICS

16. Customer Retention Programs
CUSTOMER
RELATIONSHIP
MANAGEMENT
SATISFACTION
16
CUSTOMER
SERVICE
FREQUENCY/
LOYALTY
PROGRAMS
CUSTOMIZATION
REWARDS
PROGRAMS
COMMUNITY
BUILDING

17. Objective of the study of CRM
CRM, in its broadest sense, means managing all interactions
and business with customers. This includes, but is not limited to,
improving customer service. A good CRM program will allow a
business to acquire customers, service the customer, increase the
value of the customer to the company, retain good customers, and
determine which customers can be retained or given a higher level of
service. A good CRM program can improve customer service by
facilitating communication in several ways:
 Provide product information, product use information, and
technical assistance on web sites that are accessible 24 hours a
day, 7 days a week
 Identify how each individual customer defines quality, and then
design a service strategy for each customer based on these
individual requirements and expectations.
 Provide a fast mechanism for managing and scheduling follow-
up sales calls to assess post-purchase cognitive dissonance,
repurchase probabilities, repurchase times, and repurchase
frequencies.
 Provide a mechanism to track all points of contact between a
customer and the company, and do it in an integrated way so
that all sources and types of contact are included, and all users
of the system see the same view of the customer (reduces
confusion).
 Help to identify potential problems quickly, before customer
occur
17

18.  Provide a user-friendly mechanism for registering customer
complaints (complaints that are not registered with the
company cannot be resolved, and are a major source of
customer dissatisfaction).
 Provide a fast mechanism for handling problems and
complaints (complaints that are resolved quickly can increase
customer satisfaction).
 Provide a fast mechanism for correcting service deficiencies
(correct the problem before other customers experience the
same dissatisfaction).
 Use internet cookies to track customer interests and personalize
product offerings accordingly
 Use the Internet to engage in collaborative customization or
real-time customization
 Provide a fast mechanism for managing and scheduling
maintenance, repair, and ongoing support (improve efficiency
and effectiveness)
 Mechanism to evaluate Potential KOMs.
 To develop integrated Database.
 Assessing the need of Potential KOMs.
 Ways to meet those needs.
 Identify the softer elements.
 Devising a way to Retain and grow with those KOMs.
 Moving further ahead Satisfaction Delightment LOYALITY
 To develop Strategy and action plan on quarter & annual basis.
 To gain knowledge about consumer behaviour
 To know, how to maintain relationship with customer?
 To know, the needs analysis of customer
 To understand, with the help of feedback form that why
customers are not trading with Angel
 To know, the customer perception about company’s products &
services
18

19.  To know, the grievances among the customers about products &
services
The CRM program can be integrated into other cross-functional
systems and thereby provide accounting and production information
to customers when they want it.
 Keeping Existing Customers
Grading customers from very satisfied to very disappointed should
help the organization in improving its customer satisfaction levels
and scores. As the satisfaction level for each customer improves, so
shall the customer retention with the organization.
 Maximizing Life time value
Exploit up-selling and cross-selling potential. By identifying life
stage and life event trigger points by customer, marketers can
maximize share of purchase potential. Thus the single adults shall
require a new car stereo and as he grows into a married couple his
needs grow into appliances.
 Increase Loyalty
Loyal customers are more profitable. Any company will like its
mindshare status to improve from being a suspect to being an
advocate. Company has to invest in terms of its product and service
offerings to its customers. It has to innovate and meet the very needs
of its customers so that they remain as advocates on the loyalty curve.
Referral sales invariably are low cost high margin sales.
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20. Research Methodology for CRM
Meeting and satisfying each customer’s need uniquely and
individually. In the mass markets individualized information on
customers is now possible at low costs due to the rapid development
in the information technology and due to availability of scalable data
warehouses and data mining products. By using online information
and databases on individual customer interactions, marketers aim to
fulfill the unique needs of each mass-market customer. Information
on individual customers is utilized to develop frequency marketing,
interactive marketing, and after marketing programs in order to
develop relationship with high-yielding customers. In the context of
business-to-business markets, individual marketing has been in place
of quite sometime. Known as Key Account Management Program,
here marketers appoint customer teams to husband the company
resources according to individual customer needs.
Continuity Marketing Programs
Take the shape of membership and loyalty card programs where
customers are often rewarded for their member and loyalty
relationships with the marketers. The basic premise of continuity
marketing programs is to retain customers and increase loyalty
through long-term special services that has a potential to increase
mutual value through learning about each other.
Partnering Programs
The third type of CRM programs is partnering relationships
between customer and marketers to serve end user needs. In the mass
20

21. markets, two types of partnering programs are most common: Co-
branding and affinity partnering. Missing process of CRM
Traditionally customer relationship management (CRM) revolves
around the three functions of selling, marketing and support. Various
process models have been built around how these functions are
integrated and operated in a customer oriented enterprise. There is
however a fourth critical function that is lacking in most CRM
models.
The fourth function that often is the source of a competitive
edge is that of innovation. Companies must continually reinvent
themselves to deliver an improved and often a totally new value
offering to their customer base. CRM must provide the customer
intelligence that feeds information back into the enterprise’s
knowledge management processes where it can trigger new
innovation processes. When CRM is integrated into the innovation
process, significant value can be derived from faster time to market
cycle times and with new processes and services. Marketing
automation must ensure that the innovation processes are actually
market driven. A market driven innovation process must include both
strategies that are focused on satisfying customer requirements as
well as strategies focused at redefining customer requirements. Sales
automation should be integrated with the innovation process by
ensuring that all sales channels are prepared and ready to take new
processes and services to market before competitive forces can react.
Customer service automation must be designed to empower the
customer with the option of assisting with the design of the value
offering. Redefining CRM around innovation, sales, marketing and
service can identify new competitive opportunities for an enterprise.
The remaining question is whether companies are prepared to take
the initiative and expand the definition of customer relationship
management to include the process of innovation. The pressure to
deliver results within the traditional definition of CRM already
overwhelms companies. The dialog must start rather earlier than later
because the competitive window of traditional CRM is decreasing and
customer demands for a more innovative and responsive enterprise
will increase
Architecture of CRM
There are three parts of application architecture of CRM:
21

22. 1. Operational - automation to the basic business processes
(marketing, sales, service)
2. Analytical - support to analyze customer behavior, implements
business intelligence aliketechnology
3. Collaborative - ensures the contact with customers (phone,
email, fax, web, SMS, post, in person)
1. Operational CRM
Operational CRM means supporting the "front office" business
processes, which include customer contact (sales, marketing and
service). Tasks resulting from these processes are forwarded to
resources responsible for them, as well as the information necessary
for carrying out the tasks and interfaces to back-end applications are
being provided and activities with customers are being documented
for further reference. Operational CRM provides the following
benefits:
 Delivers personalized and efficient marketing, sales, and service
through multi-channel collaboration
 Enables a 360-degree view of your customer while you are
interacting with them
 Sales people and service engineers can access complete history
of all customer interaction with your company, regardless of the
touch point. The operational part of CRM typically involves
three general areas of business:
Sales force automation (SFA)
SFA automates some of the company's critical sales and sales
force management functions, for example, lead/account
management, contact management, quote management, forecasting,
sales administration, keeping track of customer preferences, buying
habits, and demographics, as well as performance management. SFA
tools are designed to improve field sales productivity. Key
infrastructure requirements of SFA are mobile synchronization and
integrated product configuration.
22

23. Customer service and support (CSS)
CSS automates some service requests, complaints, product
returns, and information requests.
Traditional internal help desk and traditional inbound call-center
support for customer inquiries are now evolved into the "customer
interaction center" (CIC), using multiple channels (Web, phone/fax,
face-to-face, kiosk, etc). Key infrastructure requirements of CSS
include computer telephony integration (CTI) which provides high
volume processing capability, and reliability.
Enterprise marketing automation (EMA)
EMA provides information about the business environment,
including competitors, industry trends, and macro-environmental
variables. It is the execution side of campaign and lead management.
The intent of EMA applications is to improve marketing campaign
efficiencies. Functions include demographic analysis, variable
segmentation, and predictive modeling occurs on the analytical
(Business Intelligence) side.
Integrated CRM software is often also known as "front office
solutions." This is because they deal directly with the customer. Many
call centers use CRM software to store all of their customer's details.
When a customer calls, the system can be used to retrieve and store
information relevant to the customer. By serving the customer quickly
and efficiently, and also keeping all information of a customer in one
place, a company aims to make cost savings, and also encourage new
customers.
CRM solutions can also be used to allow customers to perform
their own service via a variety of communication channels. For
example, you might be able to check your bank balance via your WAP
phone without ever having to talk to a person, saving money for the
company, and saving your time.
2. Analytical CRM
23

24. In analytical CRM, data gathered within operational CRM
and/or other sources are analyzed to segment customers or to identify
potential to enhance client relationship. Customer analysis typically
can lead to targeted campaigns to increase share of customer's wallet.
Examples of Campaigns directed towards customers are:
 Acquisition: Cross-sell, up-sell
 Retention: Retaining customers who leave due to maturity or
attrition.
 Information: Providing timely and regular information to
customers.
 Modification: Altering details of the transactional nature of the
customers' relationship.
 Analysis typically covers but is not limited to:
 Decision support: Dashboards, reporting, metrics, performance
etc.
 Predictive modeling of customer attributes
 Strategy and Research Analysis of Customer data may relate to
one or more of the following analyses:
 Contact channel optimization
 Contact Optimization
 Customer Acquisition / Reactivation / Retention
 Customer Segmentation
 Customer Satisfaction Measurement / Increase
 Sales Coverage Optimization
 Fraud Detection and analysis
 Financial Forecasts
 Pricing Optimization
 Product Development
 Program Evaluation
 Risk Assessment and Management
Data collection and analysis is viewed as a continuing and
iterative process. Ideally, business decisions are refined over time,
based on feedback from earlier analysis and decisions. Therefore,
most successful analytical CRM projects take advantage of a data
warehouse to provide suitable data. Business Intelligence is a related
discipline offering some more functionality as separate application
software.
24

25. 3. Collaborative CRM
Collaborative CRM facilitates interactions with customers
through all channels (personal, letter, fax, phone, web, e-mail) and
supports co-ordination of employee teams and channels. It is a
solution that brings people, processes and data together so companies
can better serve and retain their customers. The data/activities can be
structured, unstructured, conversational and/or transactional in
nature.
Collaborative CRM provides the following benefits:
 Enable efficient productive customer interactions across all
communications channels
 Enables web collaboration to reduce customer service costs
 Integrates call centers enabling multi-channel personal
customer interaction
 Integrates view of the customer while interaction at the
transaction level
25

26. Literature Review
Company Profile:
Angel Broking Limited is one of the leading and professionally
managed stock broking firm involved in quality services and research.
Angel Broking Limited is a corporate member of The Stock Exchange,
Mumbai.
The membership of the company with The Stock Exchange
Mumbai was originally in the name of Mukesh R. Gandhi, which was
eventually turned into a corporate membership in the name of Angel
Broking Limited.
Angel Broking Limited is managed by Mr. Dinesh Thakkar and
he is well supported by Mr. Mukesh Gandhi, a fifteen years veteran in
the market.
The group is well supported by a professional and qualified
research team and efficient operations and back office team, which
comprises of highly dedicated and qualified individuals. Angel has an
in-house, state of art research department.
Angel believes in reaching out to the customer at the farthest
end rather than by reaching out to them. The company in its
Endeavour to give its client the best has opened up several branches
all over Mumbai, which are efficiently integrated with the Head
Office.
26

27. Angel Broking Limited is primarily into retail stock broking,
with a customer base of retail investors, which has been increasing at
a compounded growth rate of 100% every year. The company has
huge network sub-brokers in Mumbai and other places outside
Mumbai, registered with SEBI, who act as channel partners for the
company. The company presently has the total staff strength of
around 150 employees who are spread accordingly across the head
office and all the branches.
Angel has empowered its physical presence throughout India
through various strategies which it has been adopting efficiently and
effectively over a period of time, like opening up of branches at
various places, tie-ups with various agencies and sales agents, buy-
outs of smaller regional outfits and appointment of sub-brokers and
franchisees. Moreover, Angel Broking Ltd. has been tapping and
including high net-worth and self-employed individuals to its vast
array of clients.
Angel has always strived in the direction of delivering ultimate
client satisfaction and developing stronger bonds with its customers
and chose partners. Angel has a vision to introduce new and
innovative products and services regularly. Moreover Angel has been
one among the pioneers to introduce the latest technological
innovations and integrate it efficiently within its business.
Angel Broking Ltd tryst with excellence in customer relations
began in 1987. Today, Angel has emerged as one of the most
respected Stock-Broking and Wealth Management Companies in
India. With its unique retail-focused stock trading business model,
Angel is committed to providing ‘Real Value for Money’ to all its
clients.
The Angel Group is a member of the Bombay Stock Exchange
(BSE), National Stock Exchange (NSE) and the two leading
Commodity Exchanges in the country: NCDEX & MCX. Angel is also
registered as a Depository Participant with CDSL
Angel’s Business
 Equity Trading
27

28.  Commodities
 Portfolio Management Services
 Mutual Funds Life Insurance
 Personal Loans
 IPO
 Depository Services
 Investment Advisory
Angel’s Presence
 Nation-wide network of 21 Regional Hubs
 Presence in 124 cities
 Over 6810 Sub-Brokers & Business Associates
 More than 5.9 lakh Clients
Angel Group
 Angel Broking Ltd.
 Angel Capital & Debt Market Ltd.
 Angel Commodities Broking Ltd.
 Angel Securities Ltd.
28

29. Board of Directors: -
 Mr. Dinesh Thakkar Founder Chairman & Managing Director
The Angel Group of Companies was brought to life by Mr.
Dinesh Thakkar. He ventured into stock trading with an intention to
raise capital for his own independent enterprise. However, he
recognized the opportunity offered by the stock market to serve
individual investors. Thus India’s first retail-focused stock-broking
house was established in 1987. Under his leadership, Angel became
the first broking house to embrace new technology for faster, more
effective and affordable services to retail investors.
Mr. Thakkar is valued for his understanding of the economy
and the stock-market. The print and electronic media often seek his
views on the market trend as well as investment strategies.
 Mr. Lalit Thakkar Director – Research
29

30. Mr. Lalit Thakkar is the motivating force behind Angel’s highly
acclaimed Research team. He’s been a part of the senior management
team since the Angel Group’s inception. His technical and
fundamental outlook has provided impetus to Angel’s market
research team. Research-based & personalized advisory services are
Angel’s forte, and Mr. Lalit Thakkar has undoubtedly been the brain
behind it.
When it comes to analyzing the market, Mr. Lalit Thakkar is
truly a genius. His hands-on experience and fundamental knowledge
of the market can predict the market trend early. His views on the
market trend are often quoted in the print and electronic media.
 Mr. Amit Majumdar Chief Strategy Officer
A chartered Accountant by qualification, Mr. Amit Majumdar is
a key member of Angel’s strategic decision-making process. He has
been with the group since August 2004. He has handled several
functions of the group like finance and operations, to name a few. He
has rich experience in finance, investment banking, treasury,
consultancy and advisory services.
Mr. Majumdar has led many successful initiatives for the group.
Before joining the Angel Group, Mr. Majumdar has been associated
with Rabo India Finance, Ambit Corporate Finance and Ernst &
Young.
30

31.  Mr. Rajiv Phadke Executive Director – HR & Corp.
Communications
Mr. Rajiv Phadke has actively contributed to the Group’s
growth over the last four years. Holding a major in Finance, Mr. Rajiv
Phadke is a strategic thinker with expertise in the field of corporate
planning, international marketing, financial services, brand-building,
HRD and quality management.
With over 32 years of experience, Mr. Phadke has successfully
led SBUs and financial companies from concept to commissioning.
His career horizon spans Motilal Oswal Securities, Times Guaranty
Financials, Nagarjuna Securities and Tata Exports Ltd. He is also a
well-known speaker in the HR and business development circuit and
his views are featured on various electronic media as well.
 Mr. Vinay Agrawal Executive Director – Equity Broking
Mr. Vinay Agrawal leads the Equity Broking business at Angel,
which comprises Business Development, Operations, Product
Development and E-broking initiative. He is actively involved in
exploring new ways to adopt technology for business enhancement.
A Chartered Accountant by qualification, Mr. Agrawal began his
career with the Angel Group as Finance and Operations Consultant,
and since then he’s quickly climbed up the corporate ladder.
31

32.  Mr. Nikhil Daxini Executive Director - Sales and Marketing
With an MBA in finance, Mr. Nikhil Daxini has been
instrumental in introducing the concept of professional marketing of
broking services at Angel. His area of focus is Business Development,
Risk Management and Operations.
Mr. Daxini has immense experience in the marketing of
financial products and services. He has been associated with HDFC
Bank Ltd. in the past.
 Mr. Hitungshu Debnath Executive Director - Distribution &
Wealth Management
A marketing professional and a British Chevening scholar from
the London School of Economics, Mr. Hitungshu Debnath leads the
32

33. Distribution and Wealth Management business at the Angel Group. It
includes the distribution of Insurance, mutual funds, IPOs, personal
loans and other wealth management products.
Mr. Debnath has over 18 years of industry experience. He has
been associated with Times Guaranty Financial Ltd., Fortress
Financial Services Ltd., Alliance Capital Asset Management and
HDFC Asset Management Ltd. in the past.
 Mr. Mudit Kulshreshtha Executive Director - Business
Intelligence & Analytic
Mr. Mudit Kulshreshtha heads the advance analytics and
strategic business intelligence division at Angel. With a Bachelor’s
degree in Engineering and PhD in Economics, Mr. Mudit
Kulshreshtha has more than 12 years experience in the field of
strategy and business consulting.
He has been associated with reputed consulting firms like
Deloitte Consulting India, Ernst and Young, Arthur Andersen and
WNS Global. He has advised several big clients in the U.S. and U.K.
He is also a known speaker at public seminars and conferences
organised by CII, NASSCOM, Indian School of Business and IIT.
 Mr. Santanu Syam Executive Director – Operations
Mr. Syam brings with him over 18 years of experience in the
field of Transaction Banking, Wholesale Banking, Treasury Banking,
33

34. Consumer Banking and CBS. He started his career with ANZ
Grindlays Bank and he was also associated with Standard Chartered
Bank in India as Director Transactional Banking.
Mr. Syam followed up his Engineering degree with an MBA. He
has also attended Banking & Technology seminars organised by SCB
Singapore, BSE India & Euro Finance.
 Mr. Ketan Shah Associate Director - Information Technology
IT is a strategic function at Angel. And Mr. Ketan Shah is
involved in the designing of Angel’s IT policies and Strategies. Mr.
Shah leads all IT-related activities from planning and budgeting to
implementation and maintenance.
Mr. Shah has over 18 years of industry experience. He has been
involved in various aspects of Business Operations in his previous
assignments.
 Ms. Pinky Kothari Associate Director - Sales And Marketing
Ms. Pinky Kothari is responsible for development and
expansion of the Angel Group’s business in Southern India. She
started her career at Angel as Business Development Executive. She
was then appointed the head of Surat Branch and the South Gujarat
region, before assuming the role of Associate Director.
34

35. A qualified Company Secretary and an MBA in Finance, Ms.
Kothari has vast experience in business development in the financial
services industry.
 Mr. Naveen Mathur Associate Director – Commodities Business
A CFA of 1997, Mr. Mathur holds a Post Graduation degree in
Financial Management and Business Finance. He brings with him
over 14 years of experience in the financial markets.
He had been associated with Religare Commodities, Karvy
Consultants and with BLB Ltd in the past. He has been involved in
several management activities, treasury operations, corporate and
strategic planning, research activities in Futures and Options markets
in his past assignments.
Mr. Mathur is a regular speaker on all the prominent financial
news channels.
35

36. Products and Services of Angel
We have been trained and introduced to Angel’s various
product and services, which are as follows:
E-Broking: -
Angel offers several user-friendly services to customers so that
they can manage their stock portfolio. Including, online capabilities
linked to an information database to help customers invest,
confidently. Our e-broking services are specially designed for the net-
savvy traders and investors who prefer operating from their home or
office, through the internet.
There are two types of software.
1. Browser-Based
 Angel Investor
 Angel Trade
2. Application-Based
 Angel Diet
 Angel Anywhere
USP’s of Angel E-broking
 Multiple Exchanges on a single screen- BSE, NSE-F&O, MCX,
NCDEX
 Hot keys similar to broker’s terminal
36

37.  Streaming quotes
 Products/Software/Back office training for all E-broking clients
 In-depth research & technical chart, intra-day calls
 24x7 Back-office
 Viewing ledger, Bills, Contracts, Sauda summary, Open
Position, Holdings, DP Transactions, Auction Details.
 Auto pay-in of shares & Online Securities Pay-Out
 Instant transfer of fund & Online Funds pay-out request
 Highly secure and confidential
Portfolio management service
Successful investing in Capital Markets demands ever more
time and expertise. Investment Management is an art and a science in
itself. Professional Investment Management Services are no longer
the privilege of only large institutional investors. Portfolio
Management Services (PMS) is one such service that is fast gaining
eminence as an investment avenue of choice for High Networth
Investors like you. PMS is a sophisticated investment vehicle that
offers a range of specialized investment strategies to capitalize on
opportunities in the market. The Portfolio Management Service
combined with competent fund management, dedicated research and
technology, ensures a rewarding experience for its clients.
PRODUCT BOUQUET
a- Angel Oyster
Chief Investment Officer Mr. Rajen Shah
Bottom up concentrated portfolio of Mid Cap & Small Cap
Companies with emphasis on Value Investing.
37

38. Investor Profile:
• The scheme would be suited for investors with medium to high risk
appetite having long term perspective
Fees and Charges
2% Asset Management Charges
0.50% brokerage on transactions
b- Angel Blue-chip
Fund Manager Mr. Phani Sekhar
Diversified Equity portfolio of Large cap & Mid Cap Companies.
Investor Profile:
• The scheme would be suited for investors with medium to low risk
appetite, having long term perspective.
Fees and Charges
• 2% Asset Management Fees
• 0.50% Brokerage on transactions
Angel Equity Derivatives Fund
Fund Manager Mr. Siddarth Bhamre
Bottom-Up concentrated portfolio with Equities & Derivatives,
and emphasis on Hedging by using volatility in the Markets.
Investor Profile:
• The scheme would be suited for investors with low to medium
risk appetite, having long term perspective.
• Suitable for HNI Clients and Corporate who want to park
money for consistent Return from the market even if market
remained flat.
Fees and Charges
• 2% Asset Management Charges
• 0.10% on Delivery and Rs.50 flat on options, 0.01% on futures
c- Angel Growth
38

39. Fund Manager Mr. Phani Sekhar
Diversified Equity portfolio of Large cap & Mid Cap Companies
with emphasis on growth Investment.
Investor Profile:
• The scheme would be suited for investors with moderate risk
appetite.
• Recommended investment horizon is 15 to 18 months.
Fees and Charges:
• 2% Asset Management Charges
• 0.5% brokerage on transactions
PMS characteristics: -
 Personalized Service
 Interaction with Fund Manager
 Regular feedback and reports
 Pro-active management of funds
 Holdings not impacted by entry/exit of big investors
 Can remain liquid for long periods
 Disciplined investment process
 Quality investments
 Limiting risk
 Low portfolio turnover
 Focus on generating Absolute returns rather than Relative
Returns
Angel Gold-
Product- Features of Angel Gold
 A premium service for clients who needs professional guidance
on
 long term investments
39

40.  Minimum funds or portfolio of Rs.1 Lakh and maximum of Rs.4
Lakhs will be eligible for Angel Gold..
 Brokerage of 0.50%-0.75% for clients. 50% sharing of brokerage
in case of Sub-broker’s clients.
 No AMC, No Entry/Exit load and No profit sharing
 Shares can be kept in Angel pool or can be transferred to the
respective DP accounts
 Intimation regarding transaction will be given to clients by
evening of the day of transaction
 No Lock-in period. Profits can be redeemed or re-investing
based on client’s wish
 Existing client account can be used for Angel GOLD. Clients can
do there own transactions in the same account as well.
 Research Director Mr. Lalit Thakkar along with 12 senior
analysts will take investment decisions
 Investment will be done for a longer time horizon. (12-18
Months)
 Browser based BO software for clients and branches
 Monthly Newsletter will be released from Angel GOLD desk
 Periodic meetings will be held in the branches
POSITIONING
 Angel GOLD is positioned as an equity investment option for all
those investors who aim for realistic return from equity as an
asset class on a long term perspective.
 It is for the investors who, wishes to seek professional advice for
their investments.
Unique selling Preposition (USP)
 A strong team of 11 sector specific analysts headed by Research
director guiding the investments
 No Entry/Exit load, No profit sharing, No Management fees
 A corpus limit as low as Rs.1 Lakh.
 A portfolio of growth stocks and not market capitalization bias.
40

41.  Flexibility of reinvesting, redeeming and liquidating the
portfolio
 A low cost solution for investing.
Product Segment
 Angel GOLD is for the people who fall in middle class – higher
middle class section of the society
 People who are not risk averse and can understand the return
 benefits vis-à-vis calculated risk taken
 People who are new entrant to the equity markets, normally
coming through the Mutual Fund route.
Target Customers
 Young professionals earning salaries around Rs.3 Lacs to Rs.6
Lacs with one or two years experience
 Middle aged professionals considering traditional ways of
investing i.e. FDs, PPF, gold, bonds, etc.
 Small scale businessmen who are not risk averse and will
understand the importance of reasonable returns
 Retired people who have taken hefty VRS or has savings of
which 20-25% can be invested in equities
Margin Funding and prepaid brokerage
Margin Funding
“Margin Funding” allow you to take higher exposure on the
funds as well as unlock the value of your existing portfolio & take
advantage of investment opportunities in the market without the
involvement of fresh funds. One can use the shares in his current
portfolio to make fresh purchases in the market. If utilized prudently,
this product can help unlock the value of Securities even during
depressed Stock Market conditions and provide customers with the
much-needed liquidity during pressing times.
41

42. Advantages:
 Provide instant liquidity without having to sell your Securities.
 Allow you to grab investment opportunities instantly without
any need to pay first.
 Leverage your funds available for investments.
 Benefits like bonuses and dividends continue to accrue to the
borrower.
 Any appreciation in the value of the Securities given as margin
would automatically allow enhancement in drawing power.
 Interest calculated on the amount utilized & the time for which
it is utilized.
Pre-Paid Brokerage
Pre-paid brokerage is one of the best schemes for customers to
take the advantages of less brokerage. Different pre-paid recharge are
available with different validity. Some characteristics of pre-paid
brokerage are as follows: -
 Zero account opening charges
 Attractive Brokerage Rate
 Free DP AMC for 1 year
 Assured gifts worth thousands with every account.
 Easy & Fast Recharge
 Free Financial Investment Application with every account
Quality Assurance by Angel
Angel Broking is the First Brokerage House to have a Quality
Assurance Cell across Industry Dedicated QA teams at CSO &
branches to resolve client queries/ complaints through telephone,
email or visit. Quality assurance cell is one such significant milestone
achieved by the company, which stands for its performance.
Established in 2005,the cell was set up as the compelling need was
felt to shift from ‘customer satisfaction to customer delight” Angel’s
definition of Quality- Product and services that totally satisfy and
42

43. often exceed customer needs and expectations in all respect to delight
him.
Simply put, Quality is achieving a high degree of excellence in
all forms of activities from design, development, serving and
documentation. “Right First Time and Right Every Time”. And to
achieve that, they follow the 4 ‘P’ Quality model:
 Problem solving-continuous improvement and learning
 People and Partners-Respect, challenge, growth
 Process-Standardized tasks for continuous improvement
 Philosophy-Long term thinking
Research & Advisory
The markets ended Monday marginally in the green, after
opening weak due to concerns about Swine flu. The Indices were
weak at the outset of the Tuesday ending the day in red. Markets
surged on Wednesday on positive global cues and short covering in
April 2009 derivatives contracts. The markets remained closed both
on Thursday and Friday. The markets just ended the week positive,
with the Sensex gaining 0.7% and the Nifty closing marginally lower
by 0.2%
Fundamental Analysis
Fundamental analysis is one of the most useful tools that
investors use when making decisions about which stocks they’re
going to buy. It is a process of examining key ratios that show the
current worth of a stock and the recent performance of a company.
Fundamental analysis is used to determine the amount of money a
company can make and the kind of earnings an investor can expect.
Future earnings may be subject to interpretation but good earning
histories create confidence among investors. The stock prices may
increase and the dividends may pay out.
43

44. Stock market analysts determine whether a company is meeting
its expected growth by examining the earnings that are reported by
the company on a regular basis. If the company doesn’t meet its
expected growth, the prices of its stocks usually experience a
downturn.
There are a lot of tools that are used to determine the earnings
and the value of a company on the stock market. Most of these tools
rely on the financial statements released by the company. Details
about the value of a company which include competitive advantages
and ownership ratios between the management and the outside
investors can be revealed through further fundamental analyses.
Fundamental analysis is for the rational man
 To make financial forecasts
 To conduct a company stock valuation & predict its
probable price evolution
 To make a projection on its business performance
 To evaluate its management and make internal business
decisions
 To calculate its credit risk
Technical Analysis
The art and science of examining stock chart data and
predicting future stock market movements is called technical
analysis. This style of analysis is used by investors who are often
concerned about the nature and the value of the companies
where they trade their stocks in. The holdings are usually short-
term since the investors drop the stocks once they reach their
projected profit.
44

45. The belief that stock prices move in predictable patterns is
the basis for technical analysis. The factors that influence the
movement of the price are supposedly reflected in the stock
market with great efficiency. These factors include company
performance, economic status, and natural disasters. The
efficiency, when coupled with historical trends, produces
movements that can be analyzed and applied to the future
movements of the stock market. Because the fundamental
information about the potential growth of a company is not taken
into account, technical analysis is not intended for long-term
investments. Trades are entered and exited at precise times so
technical analysts need to spend a lot of time watching the
movements of the stock market. Investors can take advantage of
both upswings and downswings in price by going either long or
short. In the event that the market doesn’t move as expected, the
losses can be limited by stop-loss orders.
Hundreds of stock patterns have been developed over time.
Most of these patterns rely on the basic concepts of “support”
and “resistance.” The level where downward prices are expected
to rise from is called the support while the level where the
upward prices are expected to reach before falling again is called
the resistance. Once they hit the support or the resistance levels,
the prices tend to bounce.
Value Added Services
 NRI Service Desk for personalized Assistance
 Dedicated Offline Equity Dealing Desk
 Online Equity Trading Platform
 NRI Investment Advisory Desk
 PAN card Assistance
 Support for Banking & PIS Account
 Portfolio Management, Mutual Fund, IOP Services
45

46. Training
A training program can serve a range of diverse purposes, and
organizations initiate training programs for many different reasons.
One of the strongest need of training is to respond to challenges
presented by new technology. Customer Relationship Management
training at Angel Broking helped us to meet the challenges in current
market scenario. We came to know about maintaining long lasting
customer relationship. We were covered by Motivational speeches by
Board of directors, Product and services, Role plays, Brain storming,
Scrip designing, Back office, Different departments at Angel and the
way they execute their tasks, Research and Advisory, Wealth
management services, Value added services and healthy
discussions ,Which are as follows in detail:
Importance & Needs of Training
Optimum Utilization of Human Resources – Training helps in
optimizing the utilization of human resource that further helps the
employee to achieve the organizational goals as well as their
individual goals.
46

47. Development of Human Resources – Training helps to provide an
opportunity and broad structure for the development of human
resources’ technical and behavioral skills in an organization. It also
helps the employees in attaining personal growth.
Development of skills of employees – Training helps in increasing the
job knowledge and skills of employees at each level. It helps to
expand the horizons of human intellect and an overall personality of
the employees.
Productivity – Training helps in increasing the productivity of the
employees that helps the organization further to achieve its long-term
goal.
Team spirit – Training helps in inculcating the sense of team work,
team spirit, and inter-team collaborations. It helps in inculcating the
zeal to learn within the employees.
Organization Culture – Training helps to develop and improve the
organizational health culture and effectiveness. It helps in creating
the learning culture within the organization.
Organization Climate – Training helps building the positive
perception and feeling about the organization. The employees get
these feelings from leaders, subordinates, and peers.
Quality – Training helps in improving upon the quality of work and
work-life.
Healthy work-environment – Training helps in creating the healthy
working environment. It helps to build good employee, relationship
so that individual goals aligns with organizational goal.
Health and Safety – Training helps in improving the health and
safety of the organization thus preventing obsolescence.
Morale – Training helps in improving the morale of the work force.
Image – Training helps in creating a better corporate image.
47

48. Profitability – Training leads to improved profitability and more
positive attitudes towards profit orientation.
Training aids in organizational development i.e. Organization
gets more effective decision making and problem solving. It helps in
understanding and carrying out organizational policies.
Training helps in developing leadership skills, motivation,
loyalty, better attitudes, and other aspects that successful workers
and managers usually display.
METHODS OF TRAINING
The most widely used methods of training used by
organizations are classified into two categories: On-the-Job Training
& Off-the-Job Training.
ON-THE-JOB TRAINING is given at the work place by superior in
relatively short period of time. This type of training is cheaper & less
time-consuming. This training can be imparted by basically four
methods: -
Coaching is learning by doing. In this, the superior guides his sub-
ordinates & gives him/her job instructions. The superior points out
the mistakes & gives suggestions for improvement.
Job Rotation: - In this method, the trainees move from one job to
another, so that he/she should be able to perform different types of
tasks. E.g. In banking industry, employees are trained for both back-
end & front-end jobs. In case of emergency, (absenteeism or
resignation), any employee would be able to perform any type of job.
OFF THE JOB TRAINING is given outside the actual work place.
Lectures/Conferences:- This approach is well adapted to convey
specific information, rules, procedures or methods. This method is
48

49. useful, where the information is to be shared among a large number
of trainees. The cost per trainee is low in this method.
Video Clips can provide information & explicitly demonstrate skills
that are not easily presented by other techniques. Motion pictures are
often used in conjunction with Conference, discussions to clarify &
amplify those points that the film emphasized.
Simulation Exercise: - Any training activity that explicitly places the
trainee in an artificial environment that closely mirrors actual
working conditions can be considered a Simulation. Simulation
activities include case experiences, experiential exercises, vestibule
training, management games & role-play.
Cases: - present an in depth description of a particular problem an
employee might encounter on the job. The employee attempts to find
and analyze the problem, evaluate alternative courses of action &
decide what course of action would be most satisfactory.
Experiential Exercises: - are usually short, structured learning
experiences where individuals learn by doing. For instance, rather
than talking about inter-personal conflicts & how to deal with them,
an experiential exercise could be used to create a conflict situation
where employees have to experience a conflict personally & work out
its solutions.
Vestibule Training: - Employees learn their jobs on the equipment
they will be using, but the training is conducted away from the actual
work floor. While expensive, Vestibule training allows employees to
get a full feel for doing task without real world pressures.
Additionally, it minimizes the problem of transferring learning to the
job.
Role Play: - Its just like acting out a given role as in a stage play. In
this method of training, the trainees are required to enact defined
roles on the basis of oral or written description of a particular
situation.
Management Games: - The game is devised on a model of a business
situation. The trainees are divided into groups who represent the
management of competing companies. They make decisions just like
49

50. these are made in real-life situations. Decisions made by the groups
are evaluated & the likely implications of the decisions are fed back to
the groups. The game goes on in several rounds to take the time
dimension into account.
In-Basket Exercise: - Also known as In-tray method of training. The
trainee is presented with a pack of papers & files in a tray containing,
administrative problems & is asked to take decisions on these
problems & are asked to take decisions on these within a stipulated
time. The decisions taken by the trainees are compared with one
another. The trainees are provided feedback on their performance.
RECOMMENDATIONS & CONCLUSION
No doubt Training is a very powerful tool for the smooth
functioning of the organization, but it needs to be used with care in
order to derive all the benefits. Here are seven recommendations for
getting the best out of this tool: -
1. Learn about the needs and proficiency of each and every employee
before an organization invests its effort, time & money on training. Its
better to identify the needs & shortcomings in an employee before
actually imparting training to him/her.
2. Experienced & skilled trainer, who possesses good amount of
knowledge & understanding about the organization's objectives,
individual abilities & the present environment, should give training.
3. Active participation from the trainees should be encouraged. There
should be a two-way communication between the trainer & trainee.
4. Feedback should be taken from the trainees after the training is
over, so that the organization comes to know about the deficiencies in
the training program & also suggestions to improve upon the same.
5. Focus of training should be on priority development needs and to
produce strong motivation to bring change in employees.
50

51. 6. The cost incurred on the training program should not exceed its
benefits.
7. The method or type of training should be very cautiously selected
by the organization depending upon the organizations' resources & an
employee's individual need for training.
Thus, training is a vital tool to cope up with the changing needs
& technologies, & ever-changing environment. It benefits both the
organization as well as the employees.
Training adopted by us at Angel-
We adopted a procedural training to execute our given tasks. A
procedure is a sequence of steps that must be followed to accomplish
a task. These steps may be required a certain level of knowledge or
have mental or physical skills associated with them. A procedure may
be linear, that is, progress from one step to the next until the task is
completed, or a procedure may have one or more decision points
where the student will have to decide which branch of the procedure
to follow next.
For short, simple, linear procedures, the following method of
explanation and demonstration is recommended:
a. The instructor demonstrates the entire procedure and explains
each step as it is done.
b. The instructor repeats the demonstration but has the trainee
explain what actions are occurring.
c. The trainee demonstrates the procedure and explains what he/she
is doing at each step.
d. The trainee demonstrates the procedure again so that the
instructor can check for full mastery.
51

52. The instructor continues this "progressive parts" approach until
the entire procedures is explained. It is sometimes appropriate to
combine several simpler steps during the training or address a more
complex step individually before combining it with the entire
training.
For procedures that have decision points, an overview of the
entire procedure is a good starting point. After that the procedure
should be broken up into segments for further instruction. The
decision points within a procedure are good break points for the
segments. An instructor can talk about the sequence of steps prior a
decision point, or the steps between decision points. Depending upon
whether the segments are simple or complex, the methods outlined
above can be used for each segment. The information needed to make
the decisions also needs to be covered at the appropriate point in the
lesson. For more complex decision points, it is recommended that all
segments be explained and demonstrated before discussing the
decision points. It is easier for a person to make a more complex
decision when they understand the steps that make up the alternative
branches of the procedure.
Training Under Different Department-
We have been trained under following departments-
1-Commodities
Commodity markets are markets where raw or
primary products are exchanged. These raw commodities are traded
on regulated commodities exchanges, in which they are bought and
sold in standardized contracts.
 Commodities are easy to Understand and have positive
correlation with Inflation.
 The Commodity market are global in nature , hence less risk for
manipulation.
52

53.  Every commodity have separate market in Itself and hence
many such market is simulated at one single screen.
 The trend in one commodity not necessarily have correlation
with the trend of other.
 Historically Commodities have outperformed the Stock Market .
 Diversification through a different asset class.
 Low Margins – 5% - 10% only
Commodities Segment wise (MCX & NCDEX)
Metals Oils Energy Softs
Agri.Comm.
Gold Crude palm Oil Brent crude Cotton
Pepper
Silver Mustard Seed Sweet Crude Sugar
Guar seed
Steel Castor oil Furnace oil Guar
Soy Bean
Copper
Jeera
Zinc
Chili
Nickel
Turmeric
Lead &
Aluminum
etc.
53

54. Problems faced at the time of training
Though we successfully executed our tasks in our training, we
had to face few problems also and they are-
 Client Data Sheet was not updated, most of them had been
shown with wrong information.
 Most of the clients were not giving appointments and some of
them did not even talk on phone.
 Many of the time when we went to meet the clients with whom
appointments was fixed, after reaching the client’s place they
said we are not available and not even interested.
 A big problem was transportation, Most of the students are out
of the state and not having vehicle, We faced lot many problems
to meet the clients at different corners of Ahmedabad.
 At angel while calling to the customers, it happened that we did
not have sufficient phone available.
 Training room was pre-occupied by full time joined fresher
employee. We faced this problem only 2 to 3 times.
 Variable strategy to execute the tasks
54

55.  Wastage of time because of a poor time management by Angel
Suggestions to Improve
 There should be a fixed strategy for SIP training.
 Team work should be there.
 Data should be up to date, so that we can save the time.
 Participation should be there.
 We should utilize every second.
 The MIS Procedure of company was not proper.
55

56. Industry Analysis
Industry Analysis at Indian level
1. Introduction
There are two types of market in India.
MONEY MARKET
Money market is a market for debt securities that pay off in the
short term usually less than one year, for example the market for 90-
days treasury bills. This market encompasses the trading and issuance
of short term non equity debt instruments including treasury bills,
commercial papers, bankers acceptance, certificates of deposits, etc.
In other word we can also say that the Money Market is basically
concerned with the issue and trading of securities with short term
maturities or quasi-money instruments. The Instruments traded in the
money-market are Treasury Bills, Certificates of Deposits (CDs),
Commercial Paper (CPs), Bills of Exchange and other such instruments
of short-term maturities (i.e. not exceeding 1 year with regard to the
original maturity)
56

57. CAPITAL MARKET
Capital market is a market for long-term debt and equity shares. In
this market, the capital funds comprising of both equity and debt are
issued and traded. This also includes private placement sources of
debt and equity as well as organized markets like stock exchanges.
Capital market can be divided into Primary and Secondary Markets.
Primary Market
In the primary market, securities are offered to public for subscription
for the purpose of raising capital or fund. Secondary market is an
equity trading avenue in which already existing/pre- issued securities
are traded amongst investors. Secondary market could be either
auction or dealer market. While stock exchange is the part of an
auction market, Over-the-Counter (OTC) is a part of the dealer market.
Secondary Market
Secondary Market refers to a market where securities are traded
after being initially offered to the public in the primary market and/or
listed on the Stock Exchange. Majority of the trading is done in the
secondary market. Secondary market comprises of equity markets and
the debt markets.
For the general investor, the secondary market provides an
efficient platform for trading of his securities. For the management of
the company, Secondary equity markets serve as a monitoring and
control conduit—by facilitating value-enhancing control activities,
enabling implementation of incentive-based management contracts,
and aggregating information (via price discovery) that guides
management decisions.
Difference between the primary market and the secondary
market
In the primary market, securities are offered to public for subscription
for the purpose of raising capital or fund. Secondary market is an
57

58. equity trading avenue in which already existing/pre- issued securities
are traded amongst investors. Secondary market could be either
auction or dealer market. While stock exchange is the part of an
auction market, Over-the-Counter (OTC) is a part of the dealer market.
Main financial products/instruments dealt in the secondary
market
 Equity: The ownership interest in a company of holders of its
common and preferred stock. The various kinds of equity shares
are as follows –
 Equity Shares:
 An equity share, commonly referred to as ordinary share also
represents the form of fractional ownership in which a
shareholder, as a fractional owner, undertakes the maximum
entrepreneurial risk associated with a business venture. The
holders of such shares are members of the company and have
voting rights. A company may issue such shares with
differential rights as to voting, payment of dividend, etc.
 Rights Issue/ Rights Shares: The issue of new securities to
existing shareholders at a ratio to those already held.
 Bonus Shares: Shares issued by the companies to their
shareholders free of cost by capitalization of accumulated
reserves from the profits earned in the earlier years.
 Preferred Stock/ Preference shares: Owners of these kind of
shares are entitled to a fixed dividend or dividend calculated at
a fixed rate to be paid regularly before dividend can be paid in
respect of equity share. They also enjoy priority over the equity
shareholders in payment of surplus. But in the event of
liquidation, their claims rank below the claims of the company’s
creditors, bondholders / debenture holders.
 Cumulative Preference Shares: A type of preference shares on
which dividend accumulates if remains unpaid. All arrears of
preference dividend have to be paid out before paying dividend
on equity shares.
58

59.  Cumulative Convertible Preference Shares: A type of preference
shares where the dividend payable on the same accumulates, if
not paid. After a specified date, these shares will be converted
into equity capital of the company.
 Participating Preference Share: The right of certain preference
shareholders to participate in profits after a specified fixed
dividend contracted for is paid. Participation right is linked
with the quantum of dividend paid on the equity shares over
and above a particular specified level.
 Security Receipts: Security receipt means a receipt or other
security, issued by a securitisation company or reconstruction
company to any qualified institutional buyer pursuant to a
scheme, evidencing the purchase or acquisition by the holder
thereof, of an undivided right, title or interest in the financial
asset involved in securitisation.
 Government securities (G-Secs): These are sovereign (credit
risk-free) coupon bearing instruments which are issued by the
Reserve Bank of India on behalf of Government of India, in lieu
of the Central Government's market borrowing programme.
These securities have a fixed coupon that is paid on specific
dates on half-yearly basis. These securities are available in wide
range of maturity dates, from short dated (less than one year) to
long dated (upto twenty years).
 Debentures: Bonds issued by a company bearing a fixed rate of
interest usually payable half yearly on specific dates and
principal amount repayable on particular date on redemption of
the debentures. Debentures are normally secured/ charged
against the asset of the company in favour of debenture holder.
 Bond: A negotiable certificate evidencing indebtedness. It is
normally unsecured. A debt security is generally issued by a
company, municipality or government agency. A bond investor
lends money to the issuer and in exchange, the issuer promises
to repay the loan amount on a specified maturity date. The
issuer usually pays the bond holder periodic interest payments
59

60. over the life of the loan. The various types of Bonds are as
follows-
 Zero Coupon Bond: Bond issued at a discount and repaid at a
face value. No periodic interest is paid. The difference between
the issue price and redemption price represents the return to
the holder. The buyer of these bonds receives only one payment,
at the maturity of the bond.
 Convertible Bond: A bond giving the investor the option to
convert the bond into equity at a fixed conversion price.
 Commercial Paper: A short term promise to repay a fixed
amount that is placed on the market either directly or through a
specialized intermediary. It is usually issued by companies with
a high credit standing in the form of a promissory note
redeemable at par to the holder on maturity and therefore,
doesn’t require any guarantee. Commercial paper is a money
market instrument issued normally for a tenure of 90 days.
Treasury Bills: Short-term (up to 91 days) bearer discount security
issued by the Government as a means of financing its cash
requirements.
2. SEBI
Security Exchange Board of India
SEBI & Its Role In Secondary Market
The SEBI is the regulatory authority established under Section 3 of
SEBI Act 1992 to protect the interests of the investors in securities and
to promote the development of, and to regulate, the securities market
and for matters connected therewith and incidental thereto.
Securities and Exchange Board of India constituted under the
Resolution of the Government of India in the Department of Economic
Affairs No.1 (44)SE/86, dated the 12th day of April, 1988;
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61. The Board shall consist of the following members, namely:-
1. A Chairman
2. Two members from amongst the officials of the Ministry of the
Central Government dealing with Finance (and administration of
the Companies Act, 1956;) 2 of 1934
3. One member from amongst the officials of [the Reserve Bank
4. Five other members of whom at least three shall be the whole-time
members
BOMBAY STOCK EXCHANGE
OF INDIA LIMITED
Bombay Stock Exchange Limited is the oldest stock exchange in
Asia with a rich heritage. Popularly known as "BSE", it was established
as "The Native Share & Stock Brokers Association" in 1875. It is the
first stock exchange in the country to obtain permanent recognition in
1956 from the Government of India under the Securities Contracts
(Regulation) Act, 1956.
The Exchange's pivotal and pre-eminent role in the
development of the Indian capital market is widely recognized and its
index, SENSEX, is tracked worldwide. Earlier an Association of
Persons (AOP), the Exchange is now a demutualised and corporative
entity incorporated under the provisions of the Companies Act, 1956,
pursuant to the BSE (Corporatization and Demutualization) Scheme,
2005 notified by the Securities and Exchange Board of India (SEBI).
With demutualization, the trading rights and ownership rights
have been de-linked effectively addressing concerns regarding
perceived and real conflicts of interest. The Exchange is professionally
managed under the overall direction of the Board of Directors.
The Board comprises eminent professionals, representatives of
Trading Members and the Managing Director of the Exchange. The
61

62. Board is inclusive and is designed to benefit from the participation of
market intermediaries.
In terms of organization structure, the Board formulates larger
policy issues and exercises over-all control. The committees constituted
by the Board are broad-based. The day-to-day operations of the
Exchange are managed by the Managing Director and a management
team of professionals.
The Exchange has a nation-wide reach with a presence in 417
cities and towns of India. The systems and processes of the Exchange
are designed to safeguard market integrity and enhance transparency
in operations. During the year 2004-2005, the trading volumes on the
Exchange showed robust growth.
The Exchange provides an efficient and transparent market for
trading in equity, debt instruments and derivatives. The BSE's On Line
Trading System (BOLT) is a proprietary system of the Exchange and is
BS 7799-2-2002 certified. The surveillance and clearing & settlement
functions of the Exchange are ISO 9001:2000 certified.
Bombay Stock Exchange Limited (BSE) which was founded in
1875 with six brokers has now grown into a giant institution with over
874 registered Broker-Members spread over 380 cities across the
country. Today, BSE's Wide Area Network (WAN) connecting over
8000 BSE Online Trading (BOLT) System Trader Work Stations
(TWS) is one of the largest of its kind in the country.
With a view to provide efficient and integrated services to the
investing public through the members and their associates in the
operations pertaining to the Exchange, Bombay Stock Exchange
Limited (BSE) has set up a unique Member Services and Development
to attend to the problems of the Broker-Members.
Member Services and Development Department is the single
point interface for interacting with the Exchange Administration to
address to Members' issues. The Department takes care of various
problems and constraints faced by the Members in various products
such as Cash, Derivatives, Internet Trading, and Processes such as
Trading, Technology, Clearing and Settlement, Surveillance and
Inspection, Membership, Training, Corporate Information, etc.
62

63. COMMODITY EXCHANGES
There are three categories:
 NCDEX
 MCX
 NMCE
A brief description of commodity exchanges are those which
trade in particular commodities, neglecting the trade of securities,
stock index futures and options etc.
In the middle of 19th century in the United States, businessmen
began organizing market forums to make the buying and selling of
commodities easier. These central marketplaces provided a place for
buyers and sellers to meet, set quality and quantity standards, and
establish rules of business.
Agricultural commodities were mostly traded but as long as
there are buyers and sellers, any commodity can be traded. In 1872, a
group of Manhattan dairy merchants got together to bring chaotic
condition in New York market to a system in terms of storage,
pricing, and transfer of agricultural products.
In 1933, during the Great Depression, the Commodity
Exchange, Inc., was established in New York through the merger of
four small exchanges – the National Metal Exchange, the Rubber
.
63

64. Exchange of New York, the National Raw Silk Exchange, and the New
York Hide Exchange.
The major commodity markets are in the United Kingdom and
in the USA. In India there are 25 recognized future exchanges, of
which there are three national level multi-commodity exchanges.
After a gap of almost three decades, Government of India has allowed
forward transactions in commodities through Online Commodity
Exchanges, a modification of traditional business known as Adhat
and Vayda Vyapar to facilitate better risk coverage and delivery of
commodities.
The three exchanges are:
1. National Commodity & Derivatives Exchange Limited (NCDEX)
2. Multi Commodity Exchange of India Limited (MCX)
3. National Multi-Commodity Exchange of India Limited (NMCEIL)
All the exchanges have been set up under overall control of
Forward Market Commission (FMC) of Government of India.
1. National Commodity & Derivatives Exchange Limited
(NCDEX)
National Commodity & Derivatives Exchange Limited (NCDEX)
located in Mumbai is a public limited company incorporated on April
23, 2003 under the Companies Act, 1956 and had commenced its
operations on December 15, 2003.This is the only commodity exchange
in the country promoted by national level institutions.
It is promoted by ICICI Bank Limited, Life Insurance
Corporation of India (LIC), National Bank for Agriculture and Rural
Development (NABARD) and National Stock Exchange of India
Limited (NSE).
It is a professionally managed online multi commodity
exchange. NCDEX is regulated by Forward Market Commission and is
subjected to various laws of the land like the Companies Act, Stamp
64

65. Act, Contracts Act, Forward Commission (Regulation) Act and various
other legislations.
2. Multi Commodity Exchange of India Limited(MCX)
Headquartered in Mumbai Multi Commodity Exchange of India
Limited (MCX), is an independent and de-mutulised exchange with a
permanent recognition from Government of India. Key shareholders
of MCX are Financial Technologies (India) Ltd., State Bank of India,
Union Bank of India, Corporation Bank, Bank of India and Canara
Bank. MCX facilitates online trading, clearing and settlement
operations for commodity futures markets across the country.
MCX started offering trade in November 2003 and has built
strategic alliances with Bombay Bullion Association, Bombay Metal
Exchange, Solvent Extractors’ Association of India, Pulses Importers
Association and Shetkari Sanghatana.
4. National Multi-Commodity Exchange of India Limited
(NMCEIL)
National Multi Commodity Exchange of India Limited
(NMCEIL) is the first de-mutualzed, Electronic Multi-Commodity
Exchange in India. On 25th July, 2001, it was granted approval by the
Government to organize trading in the edible oil complex.
It has operationalised from November 26, 2002. It is being
supported by Central Warehousing Corporation Ltd., Gujarat State
Agricultural Marketing Board and Neptune Overseas Limited. It got
its recognition in October 2000.
Commodity exchange in India plays an important role where
the prices of any commodity are not fixed, in an organized way.
Earlier only the buyer of produce and its seller in the market judged
upon the prices. Others never had a say.
Today, commodity exchanges are purely speculative in nature.
Before discovering the price, they reach to the producers, end-users,
65

66. and even the retail investors, at a grassroots level. It brings a price
transparency and risk management in the vital market.
A big difference between a typical auction, where a single
auctioneer announces the bids, and the Exchange is that people are
not only competing to buy but also to sell.
By Exchange rules and by law, no one can bid under a higher
bid, and no one can offer to sell higher than someone else’s lower
offer. That keeps the market as efficient as possible, and keeps the
traders on their toes to make sure no one gets the purchase or sale
before they do.
NSE - A New ideology
The broad objective for which the exchange was set up has
made it to play a leading role in enlarging the scope of market
reforms in securities market in India. During last one decade it has
been playing the role of a catalytic agent in reforming the markets in
terms of market microstructure and in evolving the best market
practices keeping in mind the investors.
The Exchange is set up on a de-mutual zed model wherein the
ownership, management and trading rights are in the hands of three
different sets of people. This has completely eliminated any conflict of
interest. This has helped NSE to aggressively pursue policies and
practices within a public interest framework.
66

67. NSE's nationwide, automated trading system has helped in
shifting the trading platform from the trading hall in the premises of
the exchange to the computer terminals at the premises of the trading
members located at different geographical locations in the country
and subsequently to the personal computers in the homes of investors
and even to hand held portable devices for the mobile investors. It
has been encouraging corporation of membership in securities
market.
It has also proved to be instrumental in ushering in scrip less
trading and providing settlement guarantee for all trades executed on
the Exchange. Settlement risks have also been eliminated with NSE's
innovative endeavors in the area of clearing and settlement viz.,
establishment of the clearing corporation (NSCCL), setting up a
settlement guarantee fund (SGF), reduction of settlement cycle,
implementing on-line, real-time risk management systems,
dematerialization and electronic transfer of securities to name few of
them.
As a consequence, the market today uses state-of-the-art
information technology to provide an efficient and transparent
trading, clearing and settlement mechanism. In order to take care of
investors interest, it has also created an investors protection fund
(IPF), that would help investors who have incurred financial loss due
to default of brokers.
Ownership and Management the NSE
The day-to-day management of the Exchange is delegated to the
Managing Director and CEO who is supported by a team of
professional staff. Therefore, though the role of trading members at
NSE is to the extent of providing only trading services to the
investors, the Exchange involves trading members in the process of
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68. consultation and participation in vital inputs towards decision
making.
68

69. 69

70. Market Segments and Products
NSE provides an electronic trading platform for of all types of
securities for investors under one roof - Equity, Corporate Debt,
Central and State Government Securities, T-Bills, Commercial Paper,
Certificate of Deposits (CDs), Warrants, Mutual Funds units, Exchange
Traded Funds, Derivatives like Index Futures, Index Options, Stock
Futures, Stock Options, Futures on Interest Rates etc., which makes it
one of the few exchanges in the world providing trading facility for all
types of securities on a single exchange.
The Exchange provides trading in 3 different segments viz.
 Wholesale debt market (WDM)
 Capital market (CM) segment and
 The futures & options (F&O) segment.
4. NSE FAMILY
NSCCL
National Securities Clearing Corporation Ltd. (NSCCL), a
wholly-owned subsidiary of NSE, was incorporated in August 1995
and commenced clearing operations in April 1996. It was the first
clearing corporation in the country to provide notation/settlement
guarantee that revolutionized the entire concept of settlement system
in India. It was set up to bring and 9 sustain confidence in clearing
and settlement of securities; to promote and maintain short and
consistent settlement cycles; to provide counter-party risk guarantee,
and to operate a tight risk containment system. It carries out the
clearing and settlement of the trades executed in the equities and
derivatives segments of the NSE.
70

71. IISL
India Index Services and Products Limited (IISL), a joint
venture of NSE and Credit Rating Information Services of India
Limited (CRISIL), was set up in May 1998 to provide indices and index
services. It has a consulting and licensing agreement with Standard
and Poor's (S&P), the world's leading provider of invest able equity
indices, for co-branding equity indices. IISL pools the index
development efforts of NSE and CRISIL into a coordinated whole. It is
India's first specialized company which focuses upon the index as a
core product. It provides a broad range of products and professional
index services. It maintains over 70 equity indices comprising broad-
based benchmark indices, sectoral indices and customized indices.
Many investment and risk management products based on IISL
indices have been developed in the recent past. These include index
based derivatives on NSE, a number of index funds and India's first
exchange traded fund.
NSDL
Prior to trading in a dematerialized environment, settlement of
trades required moving the securities physically from the seller to the
ultimate buyer, through the seller's broker and buyer's broker, which
involved lot of time and the risk of delay somewhere along the chain.
NSE.IT
NSE.IT Limited, a 100% technology subsidiary of NSE, was
incorporated in October 1999 to provide thrust to NSE’s technology
edge, concomitant with its overall goal of harnessing latest technology
for optimum business use.
It provides the securities industry with technology that ensures
transparency and efficiency in the trading, clearing and risk
71

72. management systems. Additionally, NSE.IT provides consultancy
services in the areas of data warehousing, internet and business
continuity plans.
NCDEX
NSE joined hand with other financial institutions in India viz.,
ICICI Bank, NABARD, LIC, PNB, CRISIL, Canara Bank and IFFCO to
promote the NCDEX which provide a platform for market participants
to trade in wide spectrum of commodity derivatives. Currently NCDEX
facilitates trading of 37 agro based commodities, 1 base metal and 2
precious metal.
5. LISTING OF SECURITIES
The stocks, bonds and other securities issued by issuers require
listing for providing liquidity to investors. Listing means formal
admission of a security to the trading platform of the Exchange. It
provides liquidity to investors without compromising the need of the
issuer for capital and ensures effective monitoring of conduct of the
issuer and trading of the securities in the interest of investors. The
issuer wishing to have trading privileges for its securities satisfies
listing requirements prescribed in the relevant statutes and in the
listing regulations of the Exchange. It also agrees to pay the listing fees
and comply with listing requirements on a continuous basis. All the
issuers who list their securities have to satisfy the corporate
governance requirement framed by regulators.
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73. 73

74. 6. MEMBERSHIP ADMINISTRATION
The trading in NSE has a three tier structure-the trading
platform provided by the Exchange, the broking and intermediary
services and the investing community. The trading members have been
provided exclusive rights to trade subject to their continuously
fulfilling the obligation under the Rules, Regulations, Byelaws,
Circulars, etc. of the Exchange. The trading members are subject to its
regulatory discipline. Any entity can become a trading member by
complying with the prescribed eligibility criteria and exit by
surrendering trading membership. There are no entry/exit barriers to
trading membership.
7. INVESTOR GRIEVANCES
Investors are the backbone of the securities market. Protection
of their interests is paramount for NSE. In furtherance of their
interests, NSE has put in place systems to ensure availability of
adequate, up-to-date and correct information to investors to enable
them to take informed decisions. It ensures that critical and price-
sensitive information reaching the exchange is made available to all
classes of investor at the same point of time.
Such price-sensitive information as bonus announcements,
mergers, new line of business, etc. received from the companies is
disseminated to all the market participants through the network of
NSE terminals all over India. Action is initiated by the Exchange
whenever any kind of price sensitive information is not provided to the
Exchange at the prescribed time by companies listed on the Exchange.
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75. 8. DEMATERIALISATION &
REMATERIALISATION
DEMATERIALISATION
Meaning
Dematerialisation is the process by which physical certificates
of an investor are converted to an equivalent number of securities in
electronic form and credited into the investor's account with his/her
DP.
Dematerialising securities (physical holding into electronic
holding)
In order to dematerialise physical securities one has to fill in a
DRF (Demat Request Form) which is available with the DP and submit
the same along with physical certificates one wishes to dematerialise.
Separate DRF has to be filled for each ISIN Number. The complete
process of dematerialisation is outlined below:
 Surrender certificates for dematerialisation to your depository
participant.
 Depository participant intimates Depository of the request
through the system.
 Depository participant submits the certificates to the registrar of
the Issuer Company.
Registrar confirms the dematerialisation request from depository.
 After dematerialising the certificates, Registrar updates accounts
and informs depository of the completion of dematerialisation.
 Depository updates its accounts and informs the depository
participant.
 Depository participant updates the demat account of the
investor.
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76. REMATERIALISATION
The process of re-materialisation is used to convert the electronic
holding into physical holdings. If one wishes to get back his securities
in the physical form one has to fill in the RRF (Re-mat Request Form)
and request his DP for re-materialisation of the balances in his
securities account. The process of re-materialisation is outlined below:
 One makes a request for dematerialisation.
 Depository participant intimates depository of the request
through the system.
 Depository confirms dematerialisation request to the registrar.
 Registrar updates accounts and prints certificates.
 Depository updates accounts and downloads details to depository
participant.
Registrar dispatches certificates to investor.
9. Broker & Sub-Broker
Broker
A broker is a member of a recognized stock exchange, who is
permitted to do trades on the screen-based trading system of different
stock exchanges. He is enrolled as a member with the concerned
exchange and is registered with SEBI.
Sub Broker
A sub broker is a person who is registered with SEBI as such
and is affiliated to a member of a recognized stock exchange.
10. PAY-IN DAY AND PAY- OUT DAY
Pay in day is the day when the brokers shall make payment or
delivery of securities to the exchange. Pay out day is the day when the
exchange makes payment or delivery of securities to the broker.
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77. Settlement cycle is on T+2 rolling settlement basis w.e.f. April
01, 2003. The exchanges have to ensure that the pay out of funds and
securities to the clients is done by the broker within 24 hours of the
payout. The Exchanges will have to issue press release immediately
after pay out.
11. Auction
What is an Auction?
The Exchange purchases the requisite quantity in the Auction
Market and gives them to the buying trading member. The shortages
are met through auction process and the difference in price indicated
in contract note and price received through auction is paid by
member to the Exchange, which is then liable to be recovered from
the client.
77