A PROJECT STUDY ON VARIOUS PRODUCTS AND
SERVICES OFFERED BY RELIANCE CAPITAL LIMITED
Submitted by,
ANOOP R KRISHNAN
MZC18MBA08
Under the guidance of
[Link] RAJAN
ASSISTANT PROFESSOR, MBA DEPARTMENT
in partial fulfillment of the requirements
for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
of
A P J Abdul Kalam Technological University
SCHOOL OF BUSINESS MANAGEMENT
MOUNT ZION COLLEGE OF ENGINEERING, KADAMMANITTA
JANUARY, 2020
TABLE OF CONTENTS
[Link] Title Page No
1. Introduction
2. Company Profile
2.1 •Mission and Vision
2.2 Product profile
3. Theoretical Framework
3.1 Meaning
3.2 Definition
3.3 Classes of NBFC
3.4 Various steps involved in
forming a NBFC
4. The Study
5. Conclusions
6. References
1. INTRODUCTION
This Project Report focuses on the various products and services provided by the NBFCs. For
this, Reliance capital limited is selected as an NBFCs in order to analyze the various products
and services offered to their customers. Reliance capital is the one of the largest fundraising
overseas by Indian non-banking financial companies (NBFCs) in the last three years.
Non-Banking Financial Companies: Non-Banking Financial Companies or NBFCs, are
financial institution that provide banking services, but do not hold a banking license. These
institutions are not allowed to take deposits from the public. Nonetheless, all operations of
these institutions are still covered under banking regulation.
2. COMPANY PROFILE
Reliance Capital Limited is an Indian diversified financial services holding
company promoted by Reliance Anil Dhirubhai Ambani Group. Reliance Capital, a
constituent of Nifty Midcap 50 and MSCI Global Small Cap Index, is a part of the Reliance
Group. It is amongst India's leading and most valuable financial services companies in the
private sector. As on March 31, 2017, the net worth of the company stood at Rs 16,548 crore,
while its total assets as on the date stood at Rs 82,209 crore. In Fortune India 500 list of 2018,
Reliance Capital was ranked as the 77th largest corporation in India with 5th rank in 'Non-
Banking Finance' category.
2.1 History
Reliance Capital Limited was incorporated in 1986 at Ahmedabad in Gujarat as Reliance
Capital
& Finance Trust Limited. The name Reliance Capital came into effect on January 5, 1995.
In 2002, Reliance Capital Ltd shifted its registered office to Jamnagar in Gujarat before it
finally
moved to Mumbai in Maharashtra, in 2006.
In 2006, Reliance Capital Ventures Limited merged with Reliance Capital. With this merger
the
shareholder base of Reliance Capital rose from 0.15 million shareholders to 1.3 million.
Reliance Capital entered the capital market with a maiden public issue in 1990 and in
subsequent years further tapped the capital market through rights issue and public issues. The
equity shares were initially listed on the Ahmedabad Stock Exchange and the Stock
Exchange
Mumbai. Presently[when?] the shares are listed on the Stock Exchange Mumbai and the
National Stock Exchange of India.
In June 2019, auditors of PWC resigned citing that they weren't allowed to carry on their
audits
if Reliance Capital prevented it from exercising independent judgment in making a report to
the
members of the company In a recent development, the auditors revealed that the recoverables
of Rs. 7083 crore were actually inter corporate deposits of other Reliance group companies
that
were being diverted. On the other hand, Reliance has claimed that there has been no diversion
of money; zero loans and or liquidity have been provided by any lender in the PwC audited
period. Reliance Capital is confident that the report of the continuing auditor will establish
that
there were no irregularities.
2.2 MISSION AND VISION
Mission - General Insurance Better, smarter & innovative insurance solutions for our
customers.
Reliance Capital's performance across all core divisions: asset management, broking, life and
general insurance continue to reflect..
Vision -
"The most profitable, innovative, and most trusted financial services company in India and in
the emerging markets". and innovation-driven
MAJOR COMPETITORS
Bajaj finserv
L&T Finance
Bajaj holdings
Muthoot finance
Rel capital etc.
LOGO
2.2 PRODUCT PROFILE
The Tata Capital Financial Services Limited (TCFSL) offers different products to their
customers. The products and services offered by TCFSL are broadly classified into two. They
are:
•Asset Management
•Insurance
•Broking and Distribution
•Commercial Finance
3 THEORETICAL FRAMEWORK
3.1 MEANING
A non-banking institution which is a company and which has its principal business of
receiving deposits under any scheme or arrangement or any other manner, or lending in any
manner is also a non-banking financial company (Residuary non-banking company).
3.2 DEFINITION
Acording to RBI,”A Non-Banking Financial Company (NBFC) is a company registered
under the Companies Act, 2013 (formerly Companies Act, 1956) and is engaged in
the business of loans and advances, acquisition of shares/stock/bonds/debentures/securities
issued by Government or local authority or other securities of like marketable nature, leasing,
hire-purchase, insurance business, chit business but does not include any institution whose
principal business is that of agriculture activity, industrial activity, sale/purchase/construction
of immovable property”.
Section 45-IA provides that no NBFC shall commence or carry on the business of Non-
Banking Financial Institution without obtaining a Certificate of Registration issued under this
Chapter (Chapter –IIIB) and not having a Net Owned Fund of rupees two crores(2,00,00,000)
3.2 CLASSES OF NBFCS
“Non-Banking Financial Company means only the non-banking institution which is a loan
company or an investment company or an asset finance company or a mutual benefits finance
company.”
• “Loan Company”
Loan Company means any company which is a financial institution carrying on as its
principal business the providing of finance whether by making loans or advances or
otherwise for any activity other than its own but does not include an Asset Finance Company.
• “Investment Company”
Investment Company means any company which is a financial institution carrying on as its
principal business the acquisition of securities.
“Asset Finance Company”
Asset Finance Company means any company which is a financial institution carrying on as
its principal business the financing of physical assets supporting productive/ economic
activity, such as automobiles, tractors, lathe machines, generator sets, earth moving and
material handling equipment’s moving on own power and general purpose industrial
machines.
• “Mutual Benefit Financial Company”
Mutual Benefit Financial Company means any company which is a financial institution
notified by the Central Government under the Companies Act 2013.
3.3 THE VARIOUS STEPS INVOLVED IN FORMING A NBFC ARE GIVEN
BELOW:
Steps Required For Formation Of New NBFC:
Step-1:Formation of Company:
The first step is to form a new Company to be registered under the Companies Act, 2013.
The name must reflect the character of an NBFC. Words such as Investment, Finvest,
Finstock, Finance etc. may be used as part of the name. In general, RBI does not allow
names which are not reflecting the characteristics of NBFC.
Step-2:Minimum Net Owned Fund:
After the incorporation of a new company the Paid up Equity Share Capital of the
Company should suitably rose either at par or premium so as to attain a minimum Net
Owned Fund of Rs. 2 crores. The Capital to be raised here should be Equity Share Capital
and not Preference Share Capital. So the Minimum Paid Up Share Capital should be 2
Crores.
Step-3:Opening of a Bank Account:
The entire sum of Rs. 2 crores should be kept in a separate bank in a Deposit Account
free from all liens. Normally funds are kept in Fixed Deposit. The RBI at the time of
considering the application for the grant of Certificate of Registration verifies the deposits
held by the Company with the Bankers.
4 THE STUDY
The various products offered by Reliance Capital Limited are follows:
1..Asset Management
Asset management is the direction of all or part of a client's portfolio by a financial
services
institution, usually an investment bank, or an individual. Institutions offer investment services
along with a wide range of traditional and alternative product offerings that might not be
available to the average investor.
2..Insurance
Insurance is a contract, represented by a policy, in which an individual or entity receives
financial protection or reimbursement against losses from an insurance company. The
company
pools clients' risks to make payments more affordable for the insured.
Insurance policies are used to hedge against the risk of financial losses, both big and small,
that
may result from damage to the insured or her property, or from liability for damage or injury
caused to a third party.
3.. Broking and Distrubution
Reliance Securities, the broking & distribution arm of Reliance Capital, is one of the India's
leading retail broking houses, providing customers with access to equities, derivatives,
currency, IPOs, mutual funds, bonds, and corporate FDs amongst others.
4..Commercial finance
Commercial finance is a type of business loan which is considered as secured loan which is
a funding arrangement by a financial institution in order to grant debt to the companies for
fulfilling big capital expenditures.
5. CONCLUSION
Reliance Capital, a constituent of MSCI Global Small Cap Index, is a part of the Reliance
Group. It
is amongst India’s leading and most valuable financial services companies in the private
sector.
Reliance Capital has interests in life, general and health insurance; commercial & home
finance;
equities and commodities broking; wealth management services; distribution of financial
products; asset reconstruction; proprietary investments and other activities in financial
[Link] company operates across India and has over 20 million customers and
workforce
of approximately 15, 595 as of May 1, 2017.
6. REFERNCES
[Link]
[Link]
[Link]
[Link]
[Link]
R
E
S
c
