This presentation summarizes a study on the risks involved with Religare Securities Limited, a stock broking firm, and its investors in Jaipur, India. The study found that broking firms face operational and financial risks. Investors primarily face market risk due to high volatility. Most investors want low risk investments to minimize losses. The presentation recommends that broking firms establish independent risk management departments and educate investors through regular meetings to better manage risks.

1. SUMMER INTERNSHIP PRESENTATION
ON
“A study on Risk Involved in Religare Securities
Limited and its investors at Jaipur”
Faculty Guide Presented By
Dr. R.C.Mathur Avinish Agrawal
FMS- IRM Roll No. 2833
1

2. INTRODUCTION
• There are several financial security companies playing their roles in Indian equity market. But
People don’t have basic knowledge regarding stock market. So they don’t understand there are
various risks involved in the working of broking firm.
• All investments are risky, whether in stock, capital market, banking, financial sector, real estate,
bullion, gold etc.
• The degree of risk however varies on the basis of the investments instrument, the mode of
investment, time frame etc.
• Risk management in a Broking Industry is a new concept in India, since it Posses’ maximum
risk in the financial market, managing it was felt most essential by the regulatory bodies and
exchanges.
2

3. COMPANY PROFILE
• Religare securities Ltd. (RSL) is a wholly owned subsidiary of Religare enterprises Ltd.
(REL).
• It was formed in 1984, as a stock broking firm called Religare Securities Ltd. (RSL) and was
admitted to the National Stock Exchange (NSE) in 1994.
• RSL is one of the market leading securities firms in India serving over 8 lakh clients across
both Offline and Online platforms.
• In 2008, Religare Securities Ltd. was awarded for the category ‘Best Broking House-with a
Global Presence.
3

4. PRODUCTS AND SERVICES
• Equity and Derivatives
• Commodity Trading
• Currency Trading
• Online Investment Portal
• Portfolio Management Services
• Depository Services
4

5. MAJOR PLAYERS IN THE MARKET 5

6. OBJECTIVES OF THE STUDY
1
• To understand various risks involved in
Religare Securities Limited.
2
• To study various risks faced by the investors.
3
• To study the measures to reduce the risk.
6

7. RESEARCH METHODOLOGY
Area of Sampling
UNIVERSE
JAIPUR
Investors of Religare
Securities Ltd. in Raja
park
SAMPLE SIZE
100 Investors and 20
dealers of Religare
Securities Ltd.
SAMPLING TECHNIQUE
Purposive
Sampling
RESEARCH DESIGN Descriptive Design
7

8. DATA COLLECTION
• Primary data
- Interview schedule
• Secondary Data
- Company’s website
- Books
• Primary
• Secondary
Data
Source
8

9. Tools and
Techniques
Frequency
Percentage
Graphical
representation
Bar
Diagrams
Pie Chart
9

10. DATAANALYSIS 10

11. Risk Involved in the Broking firm
Particulars Frequency Percent
Market Risk 3 15
Financial Risk 8 40
Credit Risk 1 5
Liquidity Risk 1 5
Operational Risk 7 35
Total 20 100
0
1
2
3
4
5
6
7
8
3
8
1 1
7
Frequency
Market
Risk
Financial
Risk
Credit
Risk
Liquidity
Risk
Operatio
nal Risk
11

12. AWARENESS ABOUT RISK
Particulars Frequency Percent
Yes 76 76
No 24 24
Total 100 100
76%
24%
Yes
No
12

13. TYPE OF RISK INVOLVED
Particulars Frequency Percent
Business Risk 12 15.80
Market Risk 46 60.50
Liquidity Risk 10 13.20
Credit Risk 8 10.50
Total 76 100 0
5
10
15
20
25
30
35
40
45
50
12
46
10
8
Frequency
Business Risk
Market Risk
Liquidity Risk
Credit Risk
13

14. RISK LEVEL
Particulars Frequency Percent
Low 52 52
Medium 37 37
High 11 11
Total 100 100
0
10
20
30
40
50
60
Low Medium High
52
37
11
Frequency
Low
Medium
High
14

15. INVESTMENT FACTOR
Particulars Frequency Percent
Liquidity 15 15
Low Risk 30 30
High Return 48 48
Trust 7 7
Total 100 100 0
5
10
15
20
25
30
35
40
45
50
15
30
48
7
Frequency
Liquidity
Low Risk
High Return
Trust
15

16. WAYS TO DEAL WITH THE RISK
Particulars Frequency Percent
Avoid 2 10
Retain 3 15
Reduce 11 55
Transfer 4 20
Total 20 100
2
3
11
4
0
2
4
6
8
10
12
Avoid Retain Reduce Transfer
Frequency
Avoid
Retain
Reduce
Transfer
16

17. MEASURES TAKEN BY BROKING FIRM
FOR REDUCING THE RISK
Particulars Frequency Percent
Outsourcing 4 20
Margin 16 80
Total 20 100
20%
80%
Outsourcing
Margin
17

18. FINDINGS
• It was found that the working of a broking firm is a very risky job because risk is involved in
each and every activity of the business. Generally, broking firm faces Operational and
Financial risk.
• The major risk faced by the investors is market risk , as there is high volatility of market.
• Majority of the investors want to trade at low risk level so as to minimize their losses.
• It was found that risks and their effects can be managed by reducing and transferring such
risks.
• Majority of the dealers preferred margin trading as the best measure to reduce the risk.
18

19. SUGGESTIONS
• A broking firm should have a risk management department that is independent of its trading
staff i.e. personnel responsible for the risk management function should be separate from
trading floor personnel.
• Senior management should regularly evaluate the risk management system to ensure that
they are appropriate and sound.
• Senior management should participate in active discussions with the staff of risk
management department and investors for measuring and managing risk.
• There has to be minimum qualification criteria for the member broker, sub broker and
employees especially dealers. The criteria can be various modules of NCFM OR BCFM.
(E.g. a dealer must pass the NCFM or BCFM dealer’s module.)
• Investors meet should be organized by the company at least once in a year to solve the
problems of investors.
19

20. 20

21. QUERIES
21