Reliance Money Ltd was providing Demat, trading,
commodities and Forex account in Rs.750 only. The charge of trading account is
NIL. Person who has Demat account in other company can do trading with Reliance
Money Ltd. with without paying extra charges. If person has saving account in IDBI, UTI & HDFC BANK can transfer and withdraw their fund
online same day. All type of people can trade with Reliance Money because their
is no brokerage charge as this company works on Fee-Base broking (Prepaid Brokerage System),which is an
advantageous than other companies.
SWOT ANALYSIS
Strengths:
1. All four accounts Trading, Demat, Forex,
Commodities are opened just for Rs.750.
2. Trading account is interlinked (if saving
account is in IDBI, UTI and HDFC Bank)
3. A very strong IT
setup with huge investment to provide best standards and effective
systems for smooth functioning of operations
4. Flexibility and
adaptability to the dynamic need of capital market.
5. Traders can also invest in Mutual Funds.
6. Reliance
Money unlike other brokering houses has
introduced a new prepaid system of
brokerage for the share trading in which it provides the lowest form of
brokerage charged from an investor.
7. It’s convenient: You can access Reliance Money’s services through:
- The Internet
- Transaction Kiosks
- The phone (Franchise)
- Call center
8. Its safe: Your account is
safeguarded with a unique security number in the security token key that
changes every 32 seconds. This number works
as a dynamic password to keep your account safe.
9. It provides you a Demat Account: You get your
own Demat Account with Reliance Capital at an annual fee of just Rs.50 (AMC of
Demat)
10. It provides you a 3-in-1 facility, You can access your Banking, Trading and Demat account through a single
window and transfer funds across accounts seamlessly.
11. Products: Company’s product line is quite
flexible in the sense that there is a product for every kind of investors.
12. It also provides investment in General
Insurance and Life Insurance.
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Weakness:
1. Against security: In Reliance Money, if you
have some shares in your Demat account then you don’t get margin against your
securities, whereas some companies are providing margin on securities in the
range of 60-70%. Whereas some brokers are also providing margin on share in the
pool account.
2. Less number of branches in India
3. Do not have access on Regional Exchanges
(such as UPSE)
4. Competition from banks.
5. Saving
Account: In
Reliance Money customer had the problem of saving account. As Reliance Money
had tie up with three banks namely IDBI,UTI and HDFC as this gives the advantage of linking the trading accounts of their
customers to saving accounts. This makes trading easier, and at the same time a
trader withdraws exactly as much money from his account as is needed to
complete the trade.
But if customer had account in some other bank
then they had to give a cheque in favour of ‘Reliance Securities Limited’ and
money comes in their trading account after 5 working days, as Reliance Money
had tie up with City Bank.But some companies are providing free account
of those banks through which they have tie up.
6. No interest on cash margin.
7. Do not take cash.
Opportunities:
1. Already having a good market access through
different products.
2. Market share of company is increase
rapidly.
3. Reliance Money Ltd is not so longer in the
financial securities area but at present it has a very good response of
investors.
4. Since Reliance Money is coming with its own
Bank and Stock Exchange, and is also planning to tie up with other banks the
prospects are very good.
Threats:
New Competitors: A lot of new competitors are trying to enter
the market in this bullish run to taste the flavor of this cherry. This is
creating a lot of competition for large players and it is creating little
confusion in the minds of the customers about the services provided by the
broker. Also many banking firms are entering into the market with huge
investment.
Competitors like ICICI, Kotak, HDFC,
and 5-paisa etc, Religare,are posing a lot of threats to the company. Some of the key points in which
the company is facing threats are:
- No margin on delivery.
- Basically very small limit of delivery.
- Other threats are: Sub broker, Brokers, Suppliers.
- No arbitrage.
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