SHCIL DP Stock Market

PROJECT REPORT

AT

STOCK HOLDING CORPORATION OF INDIA LIMITED

ON

“A Descriptive Analysis of Depository Participant With Reference to Stock Holding Corporation of India Ltd”

A project Report submitted towards the partial fulfillment of the requirements of

The two years full-time Post Graduate Diploma in Management.

Submitted by: Sunil Prabhakar

Post Graduate Diploma in Manager (Banking& Financial services)

Roll No.:2k91/BFS/51

(2009-11 Batch)

ASIA-PACIFIC INSTITUTE OF MANAGEMENT

3 & 4, Institutional Area, Jasola, New Delhi-110025

DECLARATION

I, Sunil Prabhakar studying in Asia Pacific Institute Of Management Delhi do hereby

declare that this Project relating to Stock Holding Corporation of India Ltd (SHCIL)

and the title “A Descriptive analysis of the depository participant with Reference to

SHCIL” has been prepared by me after undergoing the prescribed industrial survey as

part of the requirement of the PGDM program of AIMA. My guide for the training was

Mr. Vijay Garg (Branch manager) and Mentor Prof AK Sinha I, further declare that this

project work is the outcome of my efforts and not a replica of any other report/work

submitted to any university or boards. I also declare the same report has not been

submitted to any other University or Board for the award of any other degree or

diploma.

Name of student: Sunil PrabhakarPlace: New Delhi Reg. No – 2K91/BFS/51

ACKNOWLEDGEMENT

An exchange of ideas generates a new object to work in a better way. Apart from the

ability labor and time devotion, guidance and co-operation are two pillars for the success

of a project. Whenever a person is helped or co-operated by others, his heart is bound to

pay gratitude to others.

A satiation and pleasure that accompany the successful completion of task would be

incomplete without the mention of the people who have made it possible and whose

consent guidance and encouragement served as a guiding light for the completion of the

study.

I express my sincere gratitude to Dr. D.K. Banerjeee, Director, AIM, for providing me

an opportunity to undergo summer training. And also for those who have guided and

inspired me in completing this study. I would like to express my deep sense of gratitude

to Prof. AK Sinha for giving me support and helping me during my project study.

I would like to express my gratitude to my project guide Mr. Vijay Garg for his constant

encouragement and guidance without the task would not have been completed.

Last but not the least I would like to thank my parent and friends for their support and

suggestions.

THANKYOU ALL

SUNIL PRABHAKAR

CONTENTS

Chapter No. Contents Page

Chapter I At a Glance 1-2

Chapter II Introduction 3-6

Background

Purpose

Objective

Limitations of the study

Plan analysis

Chapter III Industry Profile 7-21

Chapter IV Company profile 22-27

Chapter V Products and Services 28-72

Chapter VI SWOT Analysis 73-75

Chapter VII Methodology 76-77

Chapter VIII Analysis & interpretation 78-96

Chapter IX Summary of findings 97-99

Recommendations & Conclusion 100-102

Bibliography 103-104

Annexure 105-108

CONTENTS OF THE GRAPHS

Serial

Number

Title Page

Number

Table 1 Age group of respondents 79

Table 2 No. of shareholders trading in SHCIL 80

Table 3 No. of years the respondents holding the shares

in SHICL

81

Table 4 How safe the securities are in opting the demat 82

Table 5 Most preferred DP product 83

Table 6 Selection of the source in which information

is available

84

Table 7 Selection of Stock Exchange by the shareholders

and brokers.

85

Table 8 Attribute of services available at SHCIL 86

Table 9 Selection of investment avenues. 87

Table 10 Tailor-made services 88

Table 11 Value-added services available to the clients

at SHCIL

89

Table 12 Satisfaction in terms of Infrastructure, software

of the organization.

90

Table 13 Effectiveness of the DP services compared to

Other financial institutions.

91

Table 14 Interest rates in terms of loan against demat

Held in DP.

92

Table 15 Safety & security of the demat account. 93

Table 16 Service charges charged by SHCIL 94

Table 17 Effectiveness in settling the stock 95

Table 18 On-line trading. 96

Stock Holding Corporation of India Limited

At a Glance

1


Executive Summary

The study is about describing the different services and products offered at SHCIL.

Project mainly deals with how the resources of the organization are used in their day-

to-day activities. For a finance manager it will be of great help to know how to

properly utilize the resources of the organization. It is not only the theory, which will

help in the corporate world, but also how things happen practically. Here there is an

opportunity to learn how the things happen practically. Every day the various

activities happening in the department are observed and understood carefully.

The study initially concentrated on obtaining the information from the investors on

various parameters. As it is a finance project mainly data was be available internally.

After finishing this task, the actual analysis of the project has been started where

certain important calculations has been done. This helped to come out with some

conclusions. Also the data pertaining to some Demat Section Managers has been

taken and analyzed which made to arrive at some interim conclusions as a part of

project.

Stock holding has various financial Products and Services to be offered to the clients

but problem lies in the low promotional activities undertaken by it, due to which

though it has the services not offered by other DP's it fails in captivating customers.

Another problem faced by it is technology; systems at stock holding are not

technologically upgraded: it follows old technology and modes of making entries of

payments into systems. Due to system error payments to franchisees are not made on

time, which in turn affects their business relationship. Since stock holding is into DP's

business from long time it still follows old methods of operations. Thus, I got

interested to conduct study on the Depository Services under the title “Descriptive

analysis of Depository Participants with reference to Stock Holding Corporation of

India limited”.

2


Introduction

Background

Depository

3


A depository is a facility for holding securities, which enables securities transactions

to be processed by book entry. To achieve this purpose, the depository may

immobilize the securities or dematerialise them (so that they exist only as electronic

records).' India has chosen the dematerialisation route. In India, a depository is an

organization, which holds the beneficial owner's securities in electronic form, through

a registered Depository Participant (DP). A depository functions somewhat similar to

a commercial bank. To avail of the services offered by a depository, the investor has

to open an account with it through a registered DP.

Depository Participant

A Depository Participant (DP) is an agent of the depository who is authorized to offer

depository services to investors. Financial institutions, banks, custodians and

stockbrokers complying with the requirements prescribed by SEBI/ Depositories can

be registered as DP.

Benefits of Depository

Bad delivery eliminated

Immediate transfer of shares

No stamp duty on such transfers

Elimination of risks that are normally associated in dealing with Physical

certificates - loss / theft / mutilation due to careless handling / forgery / etc

Reduced transaction cost

Services provided by Depository

Dematerialisation (usually known as demat) is converting physical certificates

to electronic form

Rematerialisation, known as remat, is reverse of demat, i.e. getting physical

certificates from the electronic securities

Transfer of securities, change of beneficial ownership

Settlement of trades done on exchange connected to the Depository

Pledge / Hypothecation of demat shares, viz. Loan against shares

Electronic credit in public offering of the Companies

4


Non - Cash corporate benefits, viz. Bonus / Rights - direct credit into

electronic form

No. of Depository in the country

National Securities Depository Ltd.

Central Depository Services Ltd.

Research Title

A Descriptive Analysis of Depository Participants in Delhi with reference to India’s

Largest DP “Stock Holding Corporation Of India Ltd.”

Purpose

The past few years have seen a phenomenal growth in the capital market leading to an

explosion in transaction holding despite the transparency offered by NSE and BSE,

the primitive settlement and transfer process kept the biggest chunk of the market

risk- bad delivery, delayed transfer, fake certificates, loss and theft etc, unresolved.

The Depositories is the answer to such risk and problems.

Introduction of the depositories has paved the way for instituting an infrastructure for

eliminating these risks and increasing the efficiency of the system. The purpose of this

study is to provide information to both the organization and the investors/savers,

providing to the former present state and future prospect and to the later differences

among the services provided by the various depository participants.

This Analysis will help to have a better understanding about where SHCIL stands in

the market today and also to compare various DPs on certain parameters.

Objectives

The main objectives of the project undertaken are-

To understand the attitude and perception of investors/savers towards the DPs.

To ascertain SHCIL’s position in the competitive market.

To collect the data on various parameters

Tariff

Service

Reach(No. of branches)

Promoters

5


Product

To develop and analyze strategies of SHCIL to help improve its market

share.

To offer suggestions based upon the findings.

Limitations of the study

The study is limited only to SHCIL, HO Nehru Place New Delhi.

There was a constraint of time.

The entire study is based on the information provided by the various

respondents at SHCIL.

For the purpose of collecting vital information, Manager of the organization

is only contacted & interviewed. Since he is an individual, his biases may

have creped into the data given.

The policy of the company does not allow getting all the information.

PLAN ANALYSIS

The collected data will be analyzed with the help of parametric techniques such as

percentages, correlation, regression, co-efficient of variation and the like. Wherever

necessary tables charts, graphs, diagrams are used.

6


INDUSTRY PROFILE

INDUSTRY PROFILE

FINANCIAL MARKET

Globalization of the financial market has led to a manifold increase in the investment.

New markets have been opened: new instruments have been developed: and new

services have been launched. Besides, a number of opportunities and challenges have

7


also been thrown open. Stock Holding Corporation of India Limited. (SHCIL), the

premier custodian of Indian capital market providing services of international

standards, is geared up to reposition itself in the changed scenario. With world —

acclaimed automation and a team of committed professionals, SHCIL is confident of

scaling new heights. Combining its financial strength and technical expertise to serve

the clients better, wherever and whenever it is needed, SHCIL envisages acting as a

partner one can trust. The corporation has restructured and geared itself to serve the

growing needs of individual investors in the paperless environment. The organization

in its willingness to provide its state of art of financial services in securities industries

to the various segments of the investors has expanded itself to more than 100 cities

across the country. SHC desires to give investors the time and attention in monitoring

the performance of their securities consistently. All aimed at providing the investor

with optimum financial gain.

India has a well established capital market mechanism where in effective and efficient

transfer of money capital or financial resources from the investing class to the

entrepreneur class in the private and the public sector of the economy occur. Indian

capital market has a long history of organized trading which started with the

transaction in the loan stocks of the East India Company; from that time it has

undergone drastic changes to meet the requirements of the globalization. The Indian

capital market had been dormant in the 70’s and 80’s has witnessed unprecedented

boom during the recent years. There has been a shift of house hold savings from

physical assets to financial assets, particularly the risk bearing securities such as

shares and debentures. Capital market structure has also undergone sea Changes with

number of financial services and banking companies, private limited companies

coming into the scene which made the competition in the market stiffer.

CAPITAL MARKET

The capital market consists of primary market and secondary market segments. The

primary market deals with the issue of new instruments by the corporate sector such

as equity shares, preference shares and debentures. The public sector consisting of

central and state governments, various public sector industrial units (PSUs), statutory

and other authorities such as state electricity boards and port trust also issue bonds.

The primary market in which public issue of securities is made through a prospectus

8


is a retail market and there is no physical location. Direct mailing, advertisements and

brokers reach the investors. Screen based trading eliminates the need of trading floor.

The secondary market or stock exchange where existing securities are traded is an

auction arena. Since 1995, trading in securities is screen based. Screen based trading

has also made an appearance in India. The secondary markets consist of 23 stock

exchanges including the NSE and OTCE and Inter Connected Stock Exchanges of

India ltd. The secondary market provides a trading place for the securities already

issued to be bought and sold. It also provides liquidity to the initial buyers in the

primary market to re-offer the securities to any interested buyer at a price, if mutually

accepted. An active secondary market actually promotes the growth of the primary

market and capital formation because investors in the primary market are assured of a

continuous market and they can liquidate their investments in the stock exchange.

DEPOSITORY

Depository is an organization where the securities of a share holder are kept in the

electronic form at the request of the shareholder through a medium of a depository

participant (DP). The principal function of a depository is to dematerialise securities

and enable their transactions in book form electronically.

In India, the Depository Act defines a depository to mean “A company formed and

registered under the companies act, 1956 and which has been granted a certificate of

registration under sub-section (la) of section 12 of the Securities and Exchange Board

of India (SEBI) act, 1992”.

Legal Framework of Depositories:

The depositories act of 1996 provides for regulation of depositories in securities and

for matter there with or incidental there to and came into from 2O” of September,

1995.

SEBI formulated the Depositories and participants regulations act, 1996 to oversee the

matter regarding admission and working of depositories and its participant. The

depositories act passed by parliament received the presidents assent on august 1, 1996

enables the setting up of multiple depositories in the country. Only a company

registered under the Companies Act Of 1956 and sponsored by the specified

9


categories of institution can setup depositories in India. The depository offers services

relating to holding of securities and facility processing of transactions in such

securities in book entry form. The transactions handed by depositories include

settlement of market trades, settlement of off trades, Securities lending and

borrowing, pledge and hypothecations.

Eligibility Criteria For a Depository:

Any of the following may be a depository:

1. A public financial institution as defined in section 4a of the Companies Act Of

1956.

2. A bank included in the second schedule to the RBI Act, 1934.

3. A foreign bank operating in India with the approval of the RBI.

4. Recognized stock exchanges.

5. An institution engaged in providing financial services where not less than 75% of

the equity is held jointly or severally by these institutions.

6. A custodian of securities approved by government of India.

7. A foreign financial services institutions approved by government of India.

The promoters of depository are also known as its sponsor. A depository company

must have a minimum worth of Rs. 100 Cr. The sponsor of the depository has to hold

at least 51% of capital of the depository company.

Agreement between Depository and Issuers:

If either the issuer (a company which has issued securities) or the investor opts to hold

his securities in demat form, the issuer enters into an agreement with the depository to

enable the investors to dematerialize their securities. Where an issuer has appointed a

registrar to the issue and Registrar and Transfer (R&T) agent, the case may be for the

securities declared for dematerialization

Rights and Obligations of Depositories:

1. Every depository should have adequate mechanisms for reviewing monitoring and

evaluating the controls, systems, procedures and safeguards.

2. Annual inspections of the procedures and same should be reported to SEBI.

10


3. To ensure that the integrity of automatic data processor systems is maintained to

safeguard information.

4. Adequate measures including insurances, to protect the interests of the beneficial

owners against any risk.

Functions of Depository:

Dematerlisation

One of the primary functions of depository is to eliminate or minimize the movement

of physical securities in the market. This is done through converting securities held in

physical form in to holdings in to back entry form.

Accounts Transfer

The depository gives effects to all transfers resulting from the settlement of trade and

other transaction between various beneficial owners by recording entries in the

accounts of such beneficial owners.

Transfer and registration

A transfer is a legal change of ownership of a security in the records of the issuer.

Transfer of securities under demat occurs merely by passing book entries in the

records of the depositories, on the instructions of beneficial owners.

Pledge and hypothecation

Depositories allow the securities placed with them to be used as collateral to secure

loans and other credits. The securities pledged are transferred to a segregated or

collateral account through book entries in the records of the depository.

Linkages with clearing system

The clearing system performs the functions of ascertaining the pay-in (sell) or pay

(buy) of brokers who leave traded on the stock-exchange. Actual delivery of securities

to the clearing system from the selling brokers and delivery of securities from the

clearing system to the buying broker is done by depository. To achieve this,

depositories and the clearing system are linked electronically.

To handle the securities in electronic as per the Depositories Act 1996, two

depositories are registered with SEBI. They are: National Securities Depository

Limited (NSDL), Central Depository Services (India) Limited (CDSL).

11


DEPOSITORY PARTICIPANTS

Depository participants (DPS) are described as an agent of the depository. They are

the intermediaries between the depository and the investors. The relationship between

the DP’s and the depository is governed by an arrangement made between the two

under the depositories act. In a strictly legal sense a OP is an entity who is registered

as such with SEBI under the provisions of the SEBI Act. As per the provisions of this

act a OP can offer depository services only after obtaining a certificate of registration

from SEBI.

Eligibility Criteria For Depository Participant

A public financial institution as defined in sections of the companies act.

A bank included for the time being in the second schedule to the RBI.

A foreign bank operating in India with the approval of RBI.

A state financial corporation established under the provisions of section 3 of

the state financial corporations act, 1951.

An institution engaged in providing financial services promoted jointly or

severally by any of the institutions mentioned above.

A custodian of securities who has been granted a certificate of registration by

SEBI.

A clearing corporations or a clearinghouse of stock exchange.

A stock broker who has been granted a certificate of registration by SEBI.

A non-banking finance company..

A person desirous of becoming a DP of NSDL should make an application to SEBI

through NSDL. NSDL evaluates and sends to SEW within 30 with recommendations.

If all the conditions are met SEBI grants the registration certificate to the applicant.

SEBI prescribes a minimum net worth of Rs.5OIakh for stock brokers, R&T agents

and non-banking finance companies (NBFCs) for granting them a certificate &

registration to act as a DR. A certificate of registration is valid for a period of 5 years.

It may be renewed after 5 years.

12


Rights and Obligations of Depository Participant

1. Agreement with beneficial owners:

The OP must enter into an agreement with a beneficial owner before acting as a DR

on his behalf. A DR while conducting business with a client, acts as an agent of

NSDL and is liable to the clients for all the acts and deeds performed by him.

2. Separate accounts:

The DP shall open a separate account in the name of each beneficial owner’s account

only on receipt of instructions from beneficial owner.

3. Statement of account:

The OP should provide statements of accounts to the beneficial owner as laid in the

agreement with the beneficial owner. It should be done fortnightly if any transactions

are made and at least quarterly if no transactions are done, It can be provided through

internet.

4. Transfer or withdrawal by beneficial owner:

The DP should allow a beneficial owner to withdraw or transfer securities from its

accounts in such manner as specified in the agreement with beneficial owner.

5. Connectivity:

The DP should maintain continuous electronic communication with each P0SItory in

which it is participant.

6. Monitoring, reviewing & evaluating internet systems & controls: DP should have

an adequate mechanism for the purposes of reviewing monitoring and evaluating its

internal accounting controls and systems. It has to get an audit done on quarterly

basis.

7. Reconciliation:

The DP shot reconcile its records with every depository in which it is participant on a

daily basis. The NSDL system is designed to do this automatically every day at the

end of the day (EOD).

8. Returns:

13


The DP should submit periodic returns to SEBI and to every depository in which it is

a participant.

9. DP to indemnify depository:

A DP has to indemnify the depository, its officers and employees for all costs, fees,

expenses, liabilities, taxes, actual losses and damages of any nature what so ever

suffered like failure to comply with laws, failure to deliver eligible securities etc.

10. Prohibition of Assignment:

No DP can assign or delegate its functions as a participant to any other person without

prior approval of NSDL.

11. Insurance:

DP’s should take appropriate insurance cover to insure against losses arising from any

possible business risk and system failure.

12. Record of services:

The DP should maintain and preserve the documents for all transactions for a

minimum period of 5 years.

13. DP to ensure integrity and back-up of data:

Where DP’s maintain electronic records, they should ensure the integrity of the data

processing system. All necessary precautions should be taken to ensure that the

records are not lost, destroyed or tampered with sufficient back-up of records should

be taken and made available at all times at different places. SEBI at any time may

cancel the registration of DP if they are not in complying with the rules laid by the

depositories act. Like guilty of fraud, repeated defaults. DR may sometimes choose to

terminate its participation in the depository by giving notice of less than 30 days.

GOVERNING BODIES OF DEPOSITORY PARTICIPANT

National Securities Depository Limited (NSDL)

National securities depository limited is the first depository to be set up in India. It

was incorporated on December 12, 1995. The Industrial Development Bank Of India

(IDBI) the largest development bank in India, UTI the largest Indian mutual fund and

the National Stock Exchange in India sponsored the setting up of NSDL and

14


subscribed to the initial capital. NSDL commenced operations on November 8, 1996.

Following organizations are share holders of NSDL as on march 31, 2001:

a) INDUSTRIAL DEVELOPMENT BANK OF INDIA

b) UNITED TRUST OF INDIA

c) NATIONAL STOCK EXCHANGE

d) STATE BANK OF INDIA

e) GLOBAL TRUST BANK

f) CITIBANK

g) STANDARD CHARTED BANK

h) HDFC BANK

i) HSBC

j) DEUTSCHE BANK

k) DENA BANK

l) CANARA BANK

Ownership:

NSDL is a public limited company incorporated under the companies act, 1956.

NSDL had a paid up equity capital of Rs.10 crore. The paid-up capital has been

reduced to Rs.80 crore since NSDL has bought back its shares of the face value of

Rs.4.2 crore in the year 2000. However, its network is above Rs.100 crore as required

by SEBI regulations. -

Management of NSDL:

NSDL is managed by professional board of director. The managing director conducts

the day to day operations. To assist the MD in his functions, the board appoints an

executive committee of not more than 16 members. The eligibility criteria and period

of nomination of the members of EC etc. are governed by the bye-laws of NSDL in

this regard.

Bye-laws of NSDL:

The bye-laws approved by SEBI which contain 14 chapters they are:

15


a) Short title and commencement

b) Definitions

c) Board of directors

d) Executive committee

e) Business rules

f) Participates

g) Safeguards to protect interest of clients and participants

h) Securities

i) Accounts by book entry

j) Reconciliation accounts and audit

k) Disciplinary action appeal

l) Appeals

m) Conciliation

n) Arbitration

Function of NSDL:

NSDL performs the following functions through Depository participants (DP)

Enables the surrender and withdrawal of securities to and from the depository

(dematerialisation and rematerialisation).

Maintains investor holdings in the electronic form.

Effects settlement of trades not done on the stock-exchange (off-market

trades).

Transfer of securities.

Pledging I hypothecation of companies or corporates.

Receipt of non-cash corporate benefits like bonus rights r electronic form.

Stock lending and borrowing.

The investors interact with a depository participant (DP) of NSDL. A DP can be a

bank, financial institution, a custodian or a broker. Just as one opens a bank account to

16


avail of the services of a bank, an investor has to open an account with a DP in order

to avail of the depository facilities.

Central Depository Services Of India Limited (CDSL)

Central depository services of India ltd were the second depository to be granted the

commencement certificate by SEBI on 8 February 1999, inaugurated on 15 July 1999.

It is promoted by the Bombay stock exchange, in association of bank of India.

Both NSDL and CDSL interface with investors through their service providers known

as DP. The depository is interconnected. It is possible to transfer shares from one

depository to another.

CDSL was promoted by The Stock Exchange, Mumbai (BSE) jointly with leading

banks such as State Bank of India, Bank of India, and Bank of Baroda HDFC Bank,

Standard Chartered Bank, Union Bank of India and Centurion Bank.

CDSL was set up with the objective of providing convenient, dependable ‘and secure

depository services at affordable cost to all market participants. Some of the important

milestones of CDSL system are:

. CDSL received the certificate of commencement of business from SEBI in February

1999.

• Honorable union finance minister, Shri Yashwanth Sinha flagged off the operations

of CDSL on July 15 1999.

• Settlement of trades in the demat mode through BOl shareholding limited, the

clearing house of BSE started in July 1999.

• All leading stock exchanges like national stock exchange, Calcutta stock exchange,

Delhi stock exchange, stock exchange Ahmedabad, etc have established Connectivity

with CDSL.

• At the end of December, 2007, over 5000 issuers have admitted their securities

(equities, bonds, debentures, and commercial papers), units of mutual funds,

certificate of deposits, etc. into the CDSL system.

BENEFITS AND SAFETY OF DEPOSITORY SYSTEM

17


In the depository system the ownership and transfer of securities take place by means

of electronic book entries. At the outset, this system capital market of the dangers

related to handling of paper. The benefits that are accrued by this system are:

> Elimination of bad deliveries:

Once the holdings of investors are dematerialized, the question of bad deliveries

doesn’t arise because both transfer deed and share certificate are eliminated in

depository system.

> Elimination of all risks associated with physical certificate:

Dealing fl physical securities have the associated risks of loss of certificates during

movements to and from the registrars. These expose the investor to cost of obtaining

duplicate certificates, advertisement etc., such problems don’t arise in the depository

environment.

> No stamp duty:

No stamp duty for transfer of equity instruments and units of mutual funds in this

system.

> Immediate transfer and registration of certificate:

Once the securities are credited, to the investors account on payout, he becomes the

legal owner of the securities.

> Faster settlement cycle:

The exclusive demat segment follow rolling settlement of T+2 days which enables

faster turnover of stock and enhance liquidity with the investor.

> Buyer is secured:

In physical environment, the buyer is not secured since the shares purchased may not

be transferred. This is not the case with depository system.

> Faster disbursement of non-cash corporate benefits:

NSDL provides for direct credit of non-cash corporate entitlements like rights, bonus

etc., to an investors account ensuring faster disbursement.

> Reduction in rate of interest on loan:

Some banks provide these benefits against pledge of departmentalized securities.

18


> Increase in maximum limit of advances:

This increases from Rs.l0 lakh to Rs.20 Lakh per borrower. There is also a reduction

in minimum margin from 50% to 25% by banks to advances against demat securities.

> Reduction in brokerage:

Brokers may provide a reduction in the brokerage of 0.25% to 0.5% for trading in

dematerialised securities as it reduces their back office cost of handling paper.

> Reduction in handling huge volumes of paper:

In the physical environment every entity involved in purchase or sale of securities was

to handle paper and pass on the paper to the next entity. But in the depository system

only the delivery instruction to be given by the client is in the form of paper.

> Periodic status reports:

DP’s need to provide periodic reports to investors on their holding and transactions.

> Dematerialized securities can be delivered in the physical segment:

From April 1998 this facility is available at stock-exchange where trading in

dematerialized securities is allowed. But physical securities are not allowed to be

delivered in the dematerialized segment, making dematerialized stocks held with the

investors more liquid than physical stocks.

>Elimination of problems related to change of address of investors, transmission etc:

Investors have to inform the change of address to the OF which will be reflected in

the database of all the companies where the investor is a registered holder of

securities.

> Elimination of problems related to nominations:

An account holder can get securities in all companies transmitted transferred to his

account by completing formalities with a single entity.

> Elimination of problems related to selling securities on behalf of a minor:

A natural guardian is not required to take court approval for selling demat securities

on behalf of a minor.

> Convenient consideration of account:

19


To multiple accounts opened by investors, all accounts can be consolidated into one

account by giving instructions to DP.

> Convenient portfolio monitoring:

Client can monitor portfolio by checking a single statement of holding/transactions

> Increased volumes:

Due to case in transaction and related costs, many players have entered/increased their

transaction, which increases liquidity.

> Newer services:

Opportunities like pledge / hypothecation and stock lending are given specifically by

depository system.

Many safety measures like investor grievances, insurances cover, computer and

communication infrastructure, periodic review, certificate of registration were made

necessary to protect investors.

20


Company profile

COMPANY PROFILE

21


STOCK HOLDING CORPORATION OF INDIA LIMITED

1.1 Introduction to the company:

Flagged off at the initiative of the Government of India, SHCIL enjoys an enviable

parentage that very few organizations can boast of, including leading Indian Financial

Institutions and the Insurance majors. It has been jointly promoted by IDBI, ICICI,

IFCI, IIBI, UTI, LIC, and GIC and its subsidiaries.

It is headed by luminaries from its promoter institutions who constitute its Board of

Directors and take policy decisions pertinent to the affairs of the corporation. A senior

management team that reports to the Managing Director and the CEO aids, assists and

strategies business lines for the Corporation.

The primary focus of the corporation was specific – to set up custodial services of

international standards in India and in the process to manage the entire array of post

trade activities of Financial Institutions and Foreign Institutional Investors with

dedicated client relationship teams and state-of-the-art reporting systems.

The corporation quickly garnered nearly 70% market share of the domestic custodial

business and the financial figures shot up impressively for the first decade of its

existence.

With sustained market leadership, the biggest investing body of the country in its

client list, SHCIL ensures that its technology support not only holds enormous

databases together but also makes sense and service out of it too.

The Smithsonian Institute’s Award for “Innovative Use of Technology in the Field

of Finance” in1996 and “Computer Society of India Award” were affirmations of its

efforts, long before information technology started leapfrogging across the country.

SHCIL has also received “No Action Letter” from Securities Exchange Commission

(SEC) of USA, which renders it an eligible institution to hold assets of US-based

funds.

1.2 Vision of the Company:

“To become one stop shop for all financial services”.

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This vision of the company is slowly being achieved with the foray of the company

into new financial services and products into its portfolio the latest to be the Insurance

product, which would be soon distributed.

1.3 Mission of the Company:

“To spread Quality Service through the innovative use of technology”.

1.4 Objectives of the Company:

To retain the No. 1 position in the DP industry by being ahead of all other DP

service providers with the innovative use of technology.

To provide justified service to every rupee the client pays.

To ensure security and convenience of transaction to its clients at reasonable

price.

To channel technology to make convenient products for financial market that

give quantum benefits to investors, corporate houses and brokers.

To reach 37 million Internet users in the years to come with e-commerce

projection scaling USD 1.7 billion.

To move with speed and ease, diversifying into new areas, considerably on

others and sharpening its focus and paradigms.

To increase its customer base, this at present is 7 lakh.

To evolve a new strategy to emerge as a broad based financial powerhouse in

the years to come.

To find ways to make information and reporting system more effective for the

institutional clients.

To expand to the South-East Asia, with the aim of becoming the leader.

1.5 Basic facts about SHCIL

SHCIL is India’s largest depository participant.

SHCIL has around 20% market share i.e. over 8 lakhs demat accounts.

SHCIL has approx, 50% market share of delivery- based transaction which amount to

1.33 crore transaction.

1. Short title and commencement

2. Definitions

23


3. Board of directors

4. Executive committee

5. Business rules

6. Participates

7. Safeguards to protect interest of clients and participants

8. Securities

9. Accounts/transactions by book entry

10. Reconciliation, accounts and audit

Our Values

Safety and Efficiency of operations is a hallmark of SHCIL

Professionalism and Integrity

Customer First

Relationship Building

Commitment to Quality irrespective of asset size

HIERARCHICAL STRUCTURE OF SHCIL

24

BOARD OF DIRECTORS

MANAGING DIRECTOR & CEO

JOINT MANAGING DIRECTOR

Sr V P ( BUS. DEV) Sr VP (FINANCE) VPs (FUNCTIONAL)

DIVISIONAL MANAGERS

ASSISTANT VPs


List of various functional VPs:

VP (Depository Services) VP (IT) VP (Products) VP (Personnel) VP (HRD) VP (R&D) VP (Facilitation centre coordination)

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List of various functional Managers:

Regional Manager Area Manager Branch Manager Assistant Manager Sr.Executive Executive Sr.Officer Trainee Officer Trainee

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Product and services

PRODUCT PROFILE

1. ADDSHARES

INTRODUCTION

· SHCIL arranges loan against DEMAT shares.

· Tie-up with reputed banks which offer you the most competitive interest rates in

the market.

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· You can use the shares in your free account as collateral and take a loan from any of

our empanelled banks.

· SHCIL completes your documentation and processing and gives you a cheque

within 48 hours of application.

· This is a pure value add to your depository account with us.

· Add shares are available at SHCIL centers in all the major cities.

FEATURES

· Loan against DEMAT shares held in the DP account with SHCIL.

· Competitive interest rates from a range of banks SHCIL has tied up with.

· SHCIL processes the entire paperwork required with the bank.

· The service is available at any of over 100 branches of SHCIL.

ADVANTAGES

Our tie ups with banks give you a wider range of banks to choose from. This leads to

a wider range of specified and non-specified shares to get loan against.

The add shares team helps you with the paper formalities precedent to a loan. You can

now get a loan at a competitive interest rates and

Margins. This is a resultant of their tie up with a wide range

of banks.

· Add shares simplify long-winded loan procedures for you and facilitates early

disbursements of funds.

· Add shares are available at any of our branches numbering over 120

2. EQUIBUY

Even after payments have been made we have to wait patiently to see those shares

reflected in the DEMAT account. With the odd surprise of not seeing them at all

which you cannot discount! As your depository participant SHCIL assures you safe

delivery of shares every time you buy on the exchange. We have lined up a panel of

reputed brokers who process your orders on priority.

Our positions as the clearing corporations of leading stock exchanges ensures smooth

and sure credits in your account. An initial advance and timely replenishments into

the purchase advance account take care of the payment for your purchases. Go

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through the detailed EQUIBUY procedure and you will see how EQUIBUY in a one

stop shop for your share purchases.

FEATURES

· An EQUIBUY instruction from you gets the shares credited into your account the

next day of payout.

· Payment for your purchase made from a running account called purchase advance

into which you remit an initial advance of Rs. 1000 and maintain a minimum balance

of Rs.250 at all times.

· Choose one or more brokers from a list of 77 brokers empanelled with SHCIL.

Registration with broker is not necessary if you are already registered under any of

our other product schemes.

· Purchase on BSE or NSE.

ADVANTAGES

Buy shares with a single instruction and get an assured credit of shares into your

account the next day of payout. Leave the settlement procedures and broker

interaction to us.

· Affect a faster turnaround of your portfolio.

· EQUIBUY has a very nominal charge attached to it.

· An initial advance of Rs. 1000 in the purchase advance account and replenishments,

as and when necessary, take care of payment for your purchases.

· Choose the exchange you want to buy from- BSE or NSE.

· Choose from a range of 77 SHCIL empanelled brokers to execute your purchases.

· EQUIBUY from the SHCIL center closest to you. Select from 200 plus SHCIL

centers across the country.

PROCEDURE

· If you are not already registered with one or more of our 77 empanelled brokers

under any of our other product schemes, register yourself by filling up a broker

registration form.

· Fill up a remittance slip to open the purchase advance account by making an initial

advance of Rs. 1000.

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· Approach any SHCIL branch and submit a purchase request

slip.

· Your request will be good till the end of the day. If the shares are not purchased

before the end of the day your request lapses and a fresh request can be submitted the

next day.

· Your purchase request is transmitted to the broker as soon as you place request.

· The broker executes the trade and confirms trade details to SHCIL. The payment for

the shares purchased along with the service charge is made from the purchase advance

account.

· The shares get credited into your account the next day of payout

.

TARIFF

On Delivery Basis

· 0.55% on the value of transaction on delivery basis with a minimum of Rs.50

per client per broker settlement.

3. FUNDINVEST

Introduction

Fund Invest is a basket of financial products, ranging from fixed income securities

like fixed deposits, Infrastructure bonds and Capital Gain Bonds to variable income

securities like Initial Public Offers (IPO’s) of Equities and Mutual Funds. It is an

attempt to offer financial products that cater to the various investment needs of our

esteemed clients. An effort to guide the investor to a product portfolio that best suits

his risk- return profile.

Applications for investments can be source from any of the SHCIL offices. Apart

from guiding our investor to pick up the right combination of investment instruments,

we help them 'after-sales' service, by acting as an interlocutor between the investor

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and the issuer of the securities. SHCIL is an AMFI Registered Mutual Fund Advisor

(ARMFA).

Features

At present, we are distributing schemes of 25 different Mutual Funds

All these Funds offer wide varieties of investment option depending on the risk

appetite of the investor. Some of the major categories are:

Debt Funds: The Debt Funds have the mandate of investing primarily in Debt papers

Equity Funds: The Equity Funds have the mandate of investing primarily in Equities

Balanced Funds: The Balanced Funds have the mandate of investing both in Equities

as well as Debt papers.

Capital Gains Bonds come under 54 EC Capital Gains Bonds, where investors get

exemption from Capital Gain tax. These are 'on -tap ' issues. At present, SHCIL is

distributing Capital Gain Bonds of Rural Electrification Corporation, National

Housing Bank, Small Industries Development Bank of India and National Highway

Authority of India.

Infrastructure Bonds are issued by ICICI Bank and IDBI, with Section 88 as the main

feature

Private Placements: Debt papers issued for Private Placement with Structural

Obligations by the State and Central Government typically targeted for Trusts and

Provident Funds are distributed by Stock Holding.

Fixed Deposits: Fixed Deposits with high investment rating and issued by blue- chip

corporate are distributed by us. These papers generally offer 50 to 100 basis points

more than bank fixed deposits of comparable period. At present, we are distributing

IDBI Suvidha Fixed Deposits and HDFC Fixed Deposits.

Initial Public Offer: IPO’s offered from blue-chip corporate can be subscribed from

Stock Holding. Issues recently distributed by us are Canara Bank, Allahabad Bank,

Bharti Tele and I- Flex, Jaypee Infra , SJVN,

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http://online.stockholding.com/products/fundzinvest/so_fi_listofmf.html


List of Mutual Funds

Alliance Capital Mutual Fund

Birla Sunlife Mutual Fund

BOB Mutual Fund

Canbank Mutual Fund

Cholamandalam Mutual Fund

Deutsche Mutual Fund

DSP ML Mutual Fund

GIC Mutual Fund

HDFC Mutual Fund

HSBC Mutual Fund

IL & FS Mutual Fund

ING Savings Mutual Fund

JM Mutual Fund

Kotak Mutual Fund

LIC Mutual Fund

Principal Mutual Fund

Prudential ICICI Mutual Fund

Reliance Mutual Fund

Sahara Mutual Fund

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Standard Chartered Mutual Fund

Sundaram Mutual Fund

Tata Mutual Fund

Templeton Mutual Fund

UTI Mutual Fund

4. GOI BONDS

Savings Bonds are issued by RBI on behalf of Government of India in the following

series.

8.0% taxable bonds

These Bonds are held in electronic form in an account called Bond Ledger Account

(BLA). Bond Ledger Accounts can be opened and operated with RBI designated

Receiving Offices. SHCIL has been designated as one of the Receiving Offices by

RBI for this purpose. Subscriptions for Savings Bonds can be submitted at any of our

branches.

Savings Bonds being sovereign in nature are absolutely safe and an attractive

investment option in the current volatile market situation.

The following categories can subscribe to Savings Bonds:

Category of Investor 8.0% (Taxable)

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1. Individual

His or her individual capacity.

Individual capacity on joint basis.

Individual capacity on anyone or survivor basis.

On behalf of a minor as father/mother/legal guardian.

2. HUF (Hindu Undivided Family)

3. Charitable Institution

Charitable Institution to mean a Company registered under Section 25 of the Indian

Companies Act 1956

An Institution which has obtained a Certificate of Registration as a Charitable

Institution in accordance with a law in force

Any institution which has obtained a certificate from Income tax Authority for the

purposes of Section 80G of the Income Tax Act, 1961

4. University

University means a University established or incorporated by a Central, State or

Provincial Act and includes an Institution declared under section 3 of the University

Grants Commission Act, 1956 to be a University for the purposes of that Act

Features

The salient features of the Bonds are listed below:

1. Investment Limit

Minimum investment is Rs.1000 and there is no maximum limit

2. Interest Option

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Payable half yearly on 1st Feb, 1st Aug or cumulative on maturity.

3. Tax Benefits

Interest is taxable under IT Act 1961. Exempt from Wealth Tax under Wealth Tax

Act 1957

4. Transferability : Non-transferable, non-tradable and cannot be used as

collateral for borrowings

5. Nomination : Only sole holder or surviving holder can nominate

6. Repayment: Repayable on expiry of 6 years from date of issue. No interest

would accrue after maturity

7. Premature Encashment is not available.

Advantages

Hassle free maintenance: The GOI Bonds are held in electronic form in an

account called Bond Ledger Account. This ensures smooth investing minus

paperwork.

Electronic Clearing Services: You can avail of Electronic Clearing System

(ECS) services. This ensures automatic credit of benefits and redemptions

when they accrue.

Easy access: You can apply for subscriptions into these Bonds in any SHCIL

center across the country.

Dispatch: Certificate of Holdings is dispatched to the client through courier on

realization of subscription.

Procedure

Subscription is a very simple process. Obtain the application form from any of SHCIL

notified centers across India.

SHCIL officials will assist you in filling up your application form.

35


Fill up ALL the relevant columns provided in the Application Form. e.g. For ECS

facility, a proof of the ECS Account like Cancelled Cheque / Banker's Certification

authenticating the Account No. and MICR details.

Attach a cheque / draft / pay order in accordance with the series of subscription you

want to make for the requisite amount in favour of “Stock Holding Corporation of

India Ltd. A/C GoI 8.0% Savings (Taxable) Bonds”

A Certificate of Holding will be issued specifying the investment(s) made under the

Bond Ledger Account. The Date of Investment will be the Date of Realization of the

instrument(s).

Documents required

ECS Mandate Documents

Power of Attorney Documents (If appointed

HUF Declaration (for HUF investors only)

Certificate of Identity - for address change and nominee claims

Minor - Birth certificate, Legal or Natural guardian certificate

Form 60 or PAN for investments above Rs.50,000

Charitable Institutions - TDS exemption certificate from IT Department, Board

resolution, Trust Deed

Form 15H (Individuals Claiming Exemption of TDS)

Universities - Incorporation Certificate under Section 3 of the University Grants

Commission Act, 1956

5. INSURANCE

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Introduction

SHCIL, a company promoted by Insurance majors & Financial Institutions, is a

Corporate Agent of LIC for Life Insurance products and NIA for General Insurance

products.

SHCIL has a dedicated team of IRDA Certified Insurance Advisors to provide all

services relating to Insurance. We also provide Free Professional advice to clients on

need base insurance.

SHCIL has 200 plus odd Branches all over India to take care of all your Insurance

related queries and needs.

Features

An insurance policy compensates you against the financial impact that can

arise following loss, damage or destruction of your property (such as home or vehicle)

or your health or life.

A fundamental principle of insurance is to put you in the same financial

position after a loss or accident that you enjoyed before the loss. This is relatively

easy with repair or replacement of (say) a car, but is much more difficult with the loss

of a life. The insurance policy is a contract and like any contract contains clauses and

conditions. Claims are settled in accordance with the conditions detailed in the policy.

SHCIL distributes Life insurance policies of LIC and Non-Life insurance

policies of NIA.

The service is available at any of over 100 branches of SHCIL.

LIC products

1. KEY MAN INSURANCE

2. CHILDREN’S POLICY

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Komal jeewan plan 159

Jeewan kishore plan102

Jeewan Chayya plan103

3. ENDOWMENT POLICY

Endowment with profits plan14

Limited payment endowment with profits plan48

Jeewan Mitra plan 133

Jeewan Mitra plan 149

Join life (Jeewan Sathi) policy plan 89

4. RETIREMENT PLAN

KEY MAN INSURANCE

Key Man Insurance is an insurance taken by a business firm on life of an employee

(Key Man) whose services contribute substantially to the success of the business of

the firm.

The object of Key man insurance is to indemnify business firm from the loss of

earnings may occur because immediate replacement of the Key Man may not be

possible.

Section 37 (1) of the Income Tax Act ,1961 provides that any expenditure laid out or

expended wholly and exclusively for the purposes of business or profession shall be

allowed as a deduction in the computation of income from business or profession.

Only Partnership firms and Companies are eligible for Key Man Insurance. If a Key

Man is an employee/officer in the Company /firm, the quantum of sum Assured will

be limited to ten times of annual remuneration paid to the employee. The value of

38


perquisites can also be considered as part of remuneration to the extent of 30% of

salary for this purpose.

KOMAL JEEWAN Plan 159

Under this children’s plan, the payment of premium ceases on policy anniversary

immediately after the child attains 18 years of age. The plan, besides offering risk

cover, also offers payment of Sum Assured in installments at age 18, 20, 22, 24 and

Guaranteed and Loyalty additions, if any, at 26 years of age. The close relations such

as grandparents, elder brothers or sisters, uncles both from paternal or maternal side

can gift 'single premium policy' for love and affection under this plan. In such cases

also, the policies will be proposed by father, mother or legal guardian.

JEEWAN KISHORE Plan102

High bonus from day one.

Child becomes owner of the policy automatically at the age of 18 years.

Risk commences after 2 years of policy or on completion of 7 years of age,

whichever is later.

No medical examination of the child if age is less than 10 years.

JEEWAN CHAYYA Plan 103

Ideal for parents having less than a year old child.

Makes provision for education/ marriage of the child.

Extra benefit of waiver of premium in case of death of the policy holder.

39


This policy is given under non-medical scheme up to sum assured of Rs.1 lakh, if the

prospect is having a child of less than one year of age as on date of registering the

proposal. This non-medical is exclusive for other policies.

ENDOWMENT WITH PROFITS Plan 14

Moderate Premiums

High bonus

High liquidity

Savings oriented

This policy not only makes provisions for the family of the Life Assured in event of

his early death but also assures a lump sum at a desired age. The lump sum can be

reinvested to provide an annuity during the remainder of his life or in any other way

considered suitable at that time. Premiums are usually payable for the selected term of

years or until death if it occurs during the term period.

LIMITED PAYMENT ENDOWMENT WITH PROFITS Plan 48

Just as in the case of limited payment whole life polices, here, too, the payment of

premium can be limited either to a single payment or to a term shorter than the policy.

The endowment is, however, payable only at the end of the policy term, or upon death

of the policy holder if it takes place earlier.

If payment of the premiums ceases after at least three years' premiums have been

paid, a free paid-up Policy for an amount bearing the same proportion to the sum

assured as the number of premiums actually paid bears to the number stipulated for in

the policy, will be automatically secured provided the reduced sum assured, exclusive

of any attached bonus, is not less than Rs.250 Such reduced paid-up Policy will not be

entitled to participate in the profits declared thereafter, but such Bonus as has already

been declared on the Policy will remain attached thereto.

JEEWAN MITRA Plan 133

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The benefits of this policy can be considered only for standard and substandard lives

Class I and II. It cannot be allowed for people engaged in hazardous occupations.

Individuals engaged in dangerous pursuits will be rated against the revised tabular

occupational extra rates. This policy covers the risk for triple the sum assured.

JEEWAN ANAND Plan 149

Jeevan Anand is a With Profit Assurance Plan. It is a combination of the Whole Life

Plan and the most popular Endowment Assurance Plan. The plan provides the pre-

decided Sum Assured and Bonuses at the end of the stipulated premium paying term,

but the risk cover on the life continues till death.

Moderate Premiums

High bonus

High liquidity

Savings oriented

JOINT LIFE (Jeewan Saathi) POLICY Plan 89

This policy is issued on the lives of the husband and wife provided the female's life

belongs to Category I or is actively engaged in her spouse's business. In case of death

of one of the policy holder the surviving partner gets the sum assured, the premium is

stopped and on death or maturity full sum assured along with bonus is paid back.

RETIREMENT PLAN

Its once again that time of the year when most of you are on the look out for tax

saving avenues for investment. And for most, insurance has been on the top of the list

of choices. While earlier, buying insurance was mainly for tax benefits, but these days

with increased awareness, consumers have been narrowing down on picking up the

right policy that suits their future needs.

NIA Products

1. MEDICLAIM POLICY

41


2. FIRE INSURANCE

3. PRIVATE CAR INSURANCE

4. HOUSEHOLDER’S POLICY

MEDICLAIM POLICY

This insurance policy can be used to protect the insured party against expenses

incurred for hospitalization for illness/ injury/ diseases as well as domiciliary

hospitalization. Suitable for:

Each and every person aged between 5 and 75 years of age. Children aged

between 3 months and 5 years have to be insured along with their parents.

Government or private institutions for their employees.

Clubs or associations for their bona-fide members.

FIRE INSURANCE

This policy offers protection against loss or damage of property/ materials caused by

fire. The insurance should be taken for a maximum amount of its current value after

considering factors of wear and tear as well as depreciation.

Suitable for: This policy is vital for every individual or corporate body with respect

to the property where they have insurable interest. Since insurable interest signifies

the right to insure, the person or corporate body must be legally competent to enter

into a fire insurance contract.

PRIVATE CAR INSURANCE

Riskscovered

This insurance policy protects the motor vehicle from loss or damage

By fire, lightning, self-ignition, explosion, burglary, housebreaking or theft.

Riot or strike.

Flood, earthquake, cyclone or inundation.

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Transit by road, air, elevators or lifts.

Liability for third party's injury or death, third party property and towards the

paid driver too.

Drunken driving.

HOUSEHOLDER’S POLICY

The Householder's Insurance Policy comprises of ten sections covering of the

insured's building, fixtures and fittings, contents, jewellery and valuables, television

sets and VCRs, bicycles, accompanied baggage as well as personal accident and

public liability benefits. Of these ten, the insured party must opt for at least three

sections and section 2 is compulsory.

If the insured party opts for cover for more than 4 sections excluding compulsory

sections, a discount of 15 percent is offered on the Non-Tariff sections. For more than

6 sections, excluding Sections I and II, 20 percent discount is offered on Non-Tariff

sections.

5. STOCK DIRECT

Stock direct has changed the way you look at trading in securities. From your desktop

you can now send instructions for buying or selling shares. A three way hands shake

between leading brokers, national and international banks and SHCIL is the crux of

stock direct. Stock direct – India’s first online trading platform was launched in 1999.

Today stock direct is the most secure online trading platform which combines

encryption technology/digital signature features. A few clicks will seamlessly check

your funds and security positions, route the order to the broker of your choice and do

the necessary fund and share movements for you..

Features

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A single instruction enables you to combine your trading, fund and share

transfers with SHCIL taking care of the settlement.

Trade from home on the Internet with a floppy containing the STOCK direct

software or use the Smart Card to trade through the Request Transmitting

Machines (RTMs) placed at specified SHCIL centers and partner banks'

designated branches.

Security measures based on encryption and digital signature coupled with

smart card technology make your online deals 100% secure.

Open an account with our partner Banks or open a Purchase Advance account

with SHCIL to facilitate your fund transfers.

Choose the exchange to trade from BSE & NSE.

Advantages

OneStopShop

Give a single instruction towards funds confirmation for buy orders, order

routing to your broker and fund and share movements for settlement purpose.

Convenience

Trade from home through the net or use the RTMs placed at specified SHCIL

centers.

Security

Digital Signature & Smart Card technology based on 128 bit Encryption make

your transactions 100% secure.

Cost-Effective

No minimum value of transaction.

ChoiceofStockExchanges

Buy/Sell shares on BSE / NSE

Procedure

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If you already have a demat account with us, fill up a conversion form to convert your

demat account to Stock direct. If you do not have a demat account, fill up a demat

Account Opening form and submit it at any of our branches.

Register with any of our 77 empanelled brokers by filling up the broker registration

form and submit it along with the account opening / conversion form.

Open a savings bank account with our partner banks or You have the option of

opening with SHCIL a running account called the Purchase Advance by remitting an

initial advance of Rs.1,000 by way of cash / cheque / DD.Should you decide to open a

Bank account, fill up your bank account number in the conversion form and submit a

photocopy of a cheque leaf from your cheque book for MICR details

If you have a PC with internet, you can opt for the software option; alternatively you

can opt for the Smart Card option. You may go in for both the options also.

Within a week of your account opening / conversion, you will be sent an operating kit

containing the following:

-Smart card and/or software.

-Delivery instruction slips.

-Operating manual.

Tariff

0.50% with a minimum of Rs.50 per client per broker per

Settlement*. Normal ISA charges applicable as per client’s tariff scheme. Service tax

applicable as per GOI notifications. Media charges (one time): Rs.100 + Service tax.

(G) PENSION FUNDS

SHCIL offers pension fund administration services to pension fund trusts. The

pension fund scheme administered by the trust could be a defined benefit or a defined

contribution scheme. For both the scheme types, SHCIL offers the entire range of

services that include design, development and maintenance of a customized pension.

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SERVICE PROFILE

Depository participants

Introduction

Our Depository Participant services address your individual investment

needs. With a parentage of leading financial institutions and insurance

majors and a proven track record in the Custodian business, we have

reiterated our past success by establishing ourselves as the first ever and

largest Depository Participant in India.

Our Depository Participant services address your individual investment needs. With a

parentage of leading financial institutions and insurance majors and a proven track

record in the Custodian business, we have reiterated our past success by establishing

ourselves as the first ever and largest Depository Participant in India.

From a tentative foray in 1998 into the individual investor arena to servicing around

seven lakh accounts, we have endeavored to constantly add and innovate to make

business a pleasure for you.

46


Over 100 of our networked branches ensure we are available where you look out for

us.

Across the country, fourteen Depository Participant Machines (DPMs) connected to

NSDL and seven connected to CDSL ensure fast and direct processing of your

instructions.

Our customer-centric account schemes have been designed keeping in mind the

investment psyche of our clients. Your DP account with us takes care of your

Depository needs like dematerialisation, rematerialisation and pledging of shares.

Matching of your scanned signature on every debit instruction with a digitally

scanned original in our system makes all your trading transactions absolutely secure.

Proactive backup of your instructions prior to execution in the Depository makes us

oblivious to system crashes.

At SHCIL, we place a very high premium on client reporting. Periodic statements sent

to you keep you informed of your account status. Dedicated Customer Care lines

manned by trained staff answer your queries on demat / trades / holdings. The latest in

client response at SHCIL is Interactive Voice Response (IVR) system for round the

clock information on your account. Registration on our website, SHCIL Interactive,

enables you to check your account-related information, stock market reports and

statistics, Corporate benefits declared by companies, real-time quotes of scrip’s on

BSE and NSE and so much more online.

Open account

Before you open your account……

You can collect your account opening form from any of our branches or

download it from our site itself.

As prescribed by Depository bye-laws, accounts have to be opened in the

exact order in which the name(s) appear on the share certificate.

47


Remember that Holding pattern A B is not the same as BA. However, minor

differences like abbreviations, spelling mistakes can be ignored provided

signatures recorded with the registrar / company is the same.

Get your account opening from details :

Bank account number with complete address and 9 digit MICR numbers are

filled correctly. This will facilitate effective disbursement of monetary

corporate actions into your account.

Signature of account holders are always in black.

In case of Power of Attorney, Power of attorney holder has to sign at all places

in lieu of the holder. Certified copy of the POA has to be provided along with

the account opening forms.

If you would like to receive credit of shares purchased directly into your

account, mark standing instruction as 'Yes'.

Your account is opened.

Once your account is opened, you will be allotted a client identity number. You will

be sent an operating kit containing:

Details of your account as recorded by SHCIL.

Copy of the agreement entered into with SHCIL.

"Delivery instruction by client" booklet allotted to your demat account. This

booklet helps you transfer shares from your account to broker account and

other accounts.

Now you are ready to operate your DP account.

Maintenance

Change in permanent/correspondence address

48


A request letter ( format available on the site) signed by all the holders is required

Along with this Photocopy of proof of identification and proof of new address is

required. Please also bring the originals with you for verification purpose. Client or

the authorized bearer can visit our branch for the same. Copy of the latest transaction

statement received from SHCIL is also required.

Change in signature

Request letter (format available) signed by the client. The new signature to be attested

by the bank. The request may be submitted along with the copy of POI and the

photocopy of the latest transaction statement received from SHCIL.

Addition of PAN/Mapin

Request letter signed by the client giving the PAN/Mapin number.

Accounts with Power of Attorney

These accounts can be operated by both the client and the POA Holder. In case the

client has given the POA in favour of 2 or more persons, then the mode of operation

of the POA holders is also to be mentioned. In case the power of attorney is to be

revoked, a letter signed by the client is required.

Change of Telephone Number

Request letter signed by all the holders, with a photocopy of the recent telephone bill

and proof of identification of one of the holder.

Instruction by Fax

Clients may avail this facility by faxing their delivery instructions to SHCIL, by

executing the fax indemnity.

Change in Standing Instruction

For recording any change in the standing instruction (for receiving direct credits) in

the demat account, we require a letter signed by all the holders.

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Change in Power of Attorney Details

If you have given POA details and you wish to operate the account yourself, the POA

has to be revoked by you in writing.

Death of Beneficiary account holder(s) - Transmission of account

Transmission of account takes place in the event of death of the beneficiary account

holder(s). There can be three situations in transmission of account. See which

category you fit into and follow the relevant procedure:

- When the account has joint holders and one of the holder dies.

- When the account has a sole holder with a nominee.

- When the account has a sole holder without a nominee.

If the shares are transmitted to beneficiary accounts of surviving holders and this

beneficiary account is in a DP other than SHCIL.

Classify the transmission case into the above categories.

Over and above the documents explained above, the client master list from

the target DP has to be submitted.

Freezing of account

An account is frozen/suspended

- Only on your instruction.

- By competent authority i.e. by the Depository / SEBI.

- On receipt of court order.

Defreezing of account

Defreezing of an account takes place,

- Only on your instruction.

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- For defreezing pledge accounts, your instruction has to be

accompanied by bank authorization.

Demat

Dematerialization is the process of conversion of shares from physical form to the

electronic mode. Our dedicated demat team enable you to convert your physical

holdings into electronic mode in a quick and hassle-free manner.

As per SEBI, scrips can be divided as:

Scrips eligible for demat.

These scrips can be traded either in physical or electronic form.

Scrips falling under compulsory demat.

These scrips can be traded only in electronic form.

Scrips falling under transfer cum demat.

In this category, the shares purchased by you in the physical form can be sent to the

Registrar / Company for transfer and dematerialisation at the same time.

Submit Demat Request Form

Once your demat account is opened with us and you have received your client identity

number, you can start dematerializing your shares. You can submit the shares over the

counter at any of our branches. Do go through the tips given on filling up the DRF to

avoid rejection.

Your shares are dematerialized

When the company gives you credit, these shares will reflect under "free"

column. Now you can sell these shares. In case the company is not satisfied

with the details furnished, it will reject the shares.

If your shares have been rejected by the company, SHCIL will forward the

shares to you on receiving them from the company.

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Direct Demat

Transfer cum Demat or Direct Demat is a process wherein the shares purchased by

you in the physical form can be sent to the registrar / company for transfer and

dematerialisation at the same time.

What you need to do

Send the physical certificates along with duly executed Transfer Deeds to the

company / Registrar indicating your intention to directly demat the shares

after transfer.

The company upon effecting the transfer will send you a letter containing

details of the share certificates.

Submit this letter with a duly filled DRF to us well within the specified date

mentioned in the letter. If the letter does not reach the company / registrar

before the specified date, the Company / Registrar dispatches the physical

certificates back to you.

What happens in Direct demat

Based on guidelines issued by SEBI, the procedures for transfer cum demat is as

follows:

Firstly, you will send the physical certificates along with duly executed

Transfer Deeds directly to the company / Registrar indicating your intention

to directly demat the shares after transfer.

The company / registrar, upon effecting transfer will send you a letter. This

letter will contain all the details of certificates such as folio No. , certificate

no, Distinctive Range Number (DNR), etc.

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The certificates will be retained by the company / registrar. You will fill the

demat particulars in the DRF, attach it with the letter sent by the company and

submit the same to us.

The letter also specifies a date by which the letter needs to be returned to

them. You will have to submit the DRF along with the company letter to us

before the specified date.

If the letter does not reach the Company / Registrar before the specified date,

the Company / Registrar dispatches the physical certificates back to you.

We at our end process this letter in lieu of certificates and create a DRN and

forward the same to the company / registrar along with the DRF submitted by

you.

The company gives credit against the DRN on receipt of the DRF and ensures

defacing of certificates at their end.

The defacing of certificates at the company's end is very crucial to ensure that

the certificates are not re-circulated and misused. Hence Transfer cum Demat

procedure is admissible only in case of companies identified by NSDL and

categorized as eligible for direct demat. NSDL permits companies after due

certification by auditors on the internal controls in place at the company.

Pledge

You can pledge or hypothecate your dematerialised shares against loan or credit

facilities extended by a pledgee who also has an account with a DP

The pledge procedure

Pledgor fills in a form requesting the DP to pledge shares and hands it over to

the DP

If the form is complete in all respects, the DP processes the form and

generates a pledge / hypothecation instruction number for the request

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Securities to the extent of the instruction are debited from the free or locked-in

balances and credited as pledged balances of the pledgor so that they cannot

be used for any transactions

The pledgee will submit a form to its DP to accept / reject the pledge /

hypothecation request

If the pledgee accepts the request by the pledgor, the acceptance is

communicated electronically to the pledgor's DP. Once the pledgee's DP

confirms the acceptance of the pledge, the pledgor cannot cancel the pledge /

hypothecation order. The pledgee's DP executes the pledge / hypothecation

request as per the instructions given

In case the pledgee rejects the pledge request, the pledgor's DP is intimated

electronically. Now the securities which were earlier credited as pledged

balances will be credited to free / locked-in balances

Once the loan is repaid by the pledgor, the pledgor initiates the closure of the

plegde. The request for closure is transmitted electronically to the pledgee's

DP. The pledgee's acceptance / rejection of the request for closure of pledge is

transmitted electronically to the pledgor's DP

If the pledge is closed, the securities will be reflected as free / locked-in

balances

In case the pledgor defaults in repaying the loan to the pledgee, the pledgee

instructs his DP to invoke the pledge / hypothecation.

Reports

You get the following information at your doorstep:

Transaction cum billing and holding statement if there has been a transaction

in the account

o Weekly for traders

o Monthly for others

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The transaction cum billing and holding statement will have the following

details :

o Details of transfers executed

o Confirmation of dematerialisation / rematerialisation requests

o Rejection of dematerialisation / rematerialisation requests

o Movement of securities

Movement of securities on account of pledge creation / closure / invocation.

Information of allotment details in case of primary market issues

Quarterly holding statement if there is no transaction in the account.

Tariff

1 Annual membership charge Rs. 500/-

2 Purchase (market and off market) Nil

3 Sale (market and off market) 0.05% (min. Rs.25/-) plus

NSDL/CDSL charges

4 Custody charges NIL

5 Dematerialisation Rs.3/- per certificate

6 Postage per demat request Rs. 25/-

7 Rematerialisation Rs. 25/- per certificate

55


8 Postage per remat request Rs. 25/-

9 Creation/confirmation of creation of pledge 0.02% plus NSDL / CDSL

charges

10 Closure/confirmation of closure of pledge 0.02% plus NSDL / CDSL

charges

11 Invocation of pledge Rs. 50/- per txn.

12 Late transaction charges (per txn.) Rs. 10/-

Payment option

Client pays an Imprest of Rs.1000/- per depository account, which will be

adjusted against depository charges. The Imprest option is payable by

cheque/cash and is non-interest bearing. The client undertakes to replenish the

balance before it falls below Rs.250/-.

Client authorizes SHCIL to collect the dues through ECS facility

Clearing member(CM)

Introduction

SHCIL's long-standing association with Clearing Members has enabled it

to develop services based on an understanding of their working and their

requirement for timely and accurate information.

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We accept deposits of base capital and Additional base capital requirements stipulated

by NSE for clearing members trading on its capital market segment. Besides, our new

products with a broker empanelment clause ensure a mutually beneficial tie-up.

Clearing members stand to earn a steady income from our product transactions and

new adds to their client-base, while we capitalize on their rapport with the market.

We currently offer Depository services to more than 680 clearing members of various

exchanges connected with NSDL and CDSL. Our Customer Care lines answer all

your DP queries while the Interactive Voice Response (IVR) system gives you

information on your account and other valuable data like CC calendar details, tariff,

ISIN information, etc. via telephone, fax and e-mail.

Advantages

For Institutional & Retail clearing members We have customized tariff for

clearing members benefiting

o brokers having very high average trade value

o brokers with big retail clientele

Special tariffs for :

o CM Principal Accounts

o NSCCL CM Accounts

o Unified Settlement Pool Accounts on CDSL.

Our Customer Care help lines give timely and accurate information to CMs.

The Interactive Voice Response (IVR) system at SHCIL gives round the clock

information on holdings & transactions, Pay in / Pay out details, overdue cum

holding details, etc. via telephone, fax or e-mail.

Updated Transaction Statements are available on the website FREE of any

charge whatsoever. Members have a choice of accessing their statements date-

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wise for the last one month or settlement-wise for the same period. Current

trading day transactions are also made available, updated to the hour.

Besides the transaction statements, the Delivery-Out report, which is an

extremely critical report for Clearing Members, is also made available on the

website, updated to the hour.

Open an account – Requirements

In case of Proprietor's account, if authorized signatory is a person other

than the account holder, then Power Of Attorney is to be submitted by

Proprietor giving authority to that person

If you are shifting from another DP

to SHCIL

If you are opening a fresh Pool

account .

Account opening form Account opening form

Board resolution

Memorandum Of

Association

Authorised Signatories (for

corporates)

Board resolution

Memorandum Of

Association

Authorized Signatories

(for corporates)

SEBI Registration Certificate clearly

indicating that it is for stockbroker.

SEBI Registration Certificate clearly

indicating that it is for stockbroker.

Closure Letter addressed to

old DP duly stamped and

acknowledged by old DP.

Closure letter and Shifting

letter has to be on the

letterhead of CM

Letter from Stock

Exchange stating CC CM

ID.

In case of ISE mention on

the letter :

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Closure letter should be

duly stamped and

acknowledged by old DP.

Subject : Allotment of CC

CM ID

Shifting Letter addressed to NSDL stating

:

CM Name

old CM BP ID

old DP Name

New DP name.

Custodial services

Custodial services for Base Capital / Additional Capital requirements

We accept deposits of Base Minimum Capital (Base Capital) and Additional

Base Capital as stipulated by NSE for clearing members to be able to trade on

its capital market segment.

The securities being deposited shall be subject to legal and beneficial ownership of:

TM clearing member / spouse in case of individuals

Any of the partners / their spouses in case of partnership.

Any of the directors in case of corporate TM clearing member.

The following securities can be deposited to qualify as deposit

Listed equity shares of approved companies subject to 15%

margin

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Equity shares of Approved companies in demat form subject to

15% margin (Nifty Scrips) and 25% margin (30 other scrips pertaining to

Junior Nifty group)

Listed units of mutual funds subject to 15% margin

Unlisted units of mutual funds subject to 15% margin of the

NAV of the units prevalent on the last day of the preceding month

Listed PSU bonds subject to 15% margin

Other debt securities admitted for trading on Wholesale debt

market segment of NSE subject to 15% margin

Listed GOI / Treasury bills subject to 10% margin

Units under Unit Scheme 1964 of UTI to be valued at the

lowest of the repurchase prices prevalent in the preceding 12 months

Deposit of Fixed Deposit Receipts (FDRs) issued by approved

Banks. In case of FDRs, the members have to submit the following:

A Letter from the Bank in a specified format.

A Letter from the Member in a specified format

SHCIL Charges upfront

National Savings Certificate and Kisan Vikas Patra issued by Post office,

SGL Securities,

Certificate of Deposits (CDs) issued by Banks / Institution.

NSE members may also pledge dematerialised shares in favour of NSCCL for

security Base Capital and additional base capital requirements. The demat

shares pledged by a member as additional base capital will be considered for

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the purpose of gross exposure computation. In case of demat scrips, the

following conditions apply:

The member has to open a separate beneficiary account for Base Capital and

Additional Base Capital-Closure of pledge takes place at the instruction of

NSCCL Replacement / Addition of securities also available-in the name of

Corporate / Directors of the Company in case of Corporate clearing members -

in the name of Proprietor / spouse in case of Proprietary concerns,

The securities to be pledged to be transferred to the account. Pledge

Instruction along with pledge deed in specified format to be given to SHCIL

After pledge is created in favour of NSCCL, valuation is given to NSCCL by

SHCIL

Closure of pledge takes place at the instruction of NSCCL Replacement /

Addition of securities also available

Reporting

Among the host of reporting features offered by SHCIL, the notable ones are

Online Transaction updates during the day.

Online date-wise transaction reports, settlement number wise reports etc

Online redresses of queries through email

Intimation of failed trades

Settlement wise holding statements after payout

Faxes / Emails on specific request

DO Reporting

Some of these highly specialized reports are provided to you ONLINE and FREE

only by SHCIL.

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Derivatives

Introduction

SHCIL is a Custodian/Professional Clearing Member of derivative

segment at the Bombay Stock Exchange and at the Futures & Options

Segment of the NSEIL respectively.

We have developed in-house Back Office systems and procedures to cater to the

needs of various entities in the segment. A dedicated team of professionals handle

derivative operations and assist its clients.

As a professional clearing member, SHCIL performs the following functions:

Clearing - Computing obligations of all his TM’s i.e. determining positions to

settle.

Settlement - Performing actual settlement.

Collateral Management - Collection of collateral (cash/cash equivalents and

securities), valuation on a regular basis (as per J. R. Varma recommendations)

and setting up exposure limits for TMs and Institutional clients.

Risk Management - Setting position limits based on upfront deposits/margins

for each TM and monitoring positions on a continuous basis.

Advantages

SHCIL has always been a pioneer in clearing and settlement services in the cash

segment at both the exchanges. SHCIL has the capability to handle large volumes of

business with greatest accuracy, keeping customer interests as the top priority.

SHCIL in its endeavor to serve various entities in the derivatives segment has

developed indigenous solution keeping in view the strict regulatory requirements.

Privacy of each TM’s operations strictly maintained :SHCIL being a

professional clearing member has no trading interests in the derivatives

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segment. There is strictly no dissemination of information on trading or any

other operation of any of its clients.

One-point contact for all the activities: SHCIL’s Derivatives segment is

centralized and all operations are handled by an exclusive derivatives team.

Dedicated team of professionals to handle Derivatives operations: SHCIL has

a well-trained team of professionals supported by best systems, to handle

derivatives operations at NSE and BSE. Clients can approach the team for

troubleshooting, conceptual understanding or any other operational issue

related to derivatives trading.

Tie-up with banks having nation-wide reach for banking activities :Since

settlement in derivatives trading takes place daily. Funds movement has to be

fast. SHCIL has tie up with banks (HDFC Bank, ICICI Bank, GTB, IDBI

Bank, UTI Bank, Canara Bank etc.) having wide reach and modern facilities

like TT/anywhere banking etc. to contain the time lag in banking transactions.

Network of more than 200 branches to support outstation clients: SHCIL has

nation wide reach with its 200 plus branches across the country to support

outstation clients. SHCIL’s branches are geared up to provide derivatives

clearing and settlement services to trading members operating from respective

branches.

In built checks and controls: SHCIL has indigenously designed systems that

take care of the stringent regulatory requirements for derivatives trading in

India.

Collateral Management: SHCIL has excellent system to manage cash/cash

equivalents/securities deposited as collateral for derivatives trading. Clients

are informed as and when expiry of any instrument approaches. Securities are

transferred in minimum possible time. Corporate actions on securities are

monitored and clients are being informed accordingly.

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Support from Institutional participants: SHCIL being a custodian clearing

member having major institutional clients like UTI, IDBI etc. who are also

promoters of SHCIL, provides more credibility to its clients.

Competitive service charges: SHCIL is the pioneer in introducing Derivatives

Clearing and Settlement services in the country. To promote derivatives

trading, the service charges are designed not become a hindrance for anybody

entering this market.

More leverage: There is no need to block assets worth Rs. 50 lakh as initial

margin deposits with exchange. Instead a Trading member can take huge

exposures by investing the same amount through a PCM like SHCIL.

Low investments: Derivatives trading require complying with stringent

regulatory requirements and huge investment in back office systems for a

Clearing Member. By choosing a PCM like SHCIL, a trading member can

start trading with very little investment in back office systems since a PCM

takes care of the back office activities.

Institutional Advantage: Advantage of trading for institutional clients. A

trading member can execute institutional orders without shrinking his own

exposure limits as institutional trades are confirmed online by the respective

PCM.

Confidentiality of Trades: Since SHCIL has no trading rights, the business

details of a trading member are not likely to be misused .There is no

overlapping of business interests.

Focus: Due to highly competitive nature of the market, SHCIL’s service

charges are normally very low and it makes more business sense for a TM to

outsource the clearing and settlement activities and focus on the core business

of trading.

Open an account – Requirements

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Agreement: The TM has to sign an agreement with SHCIL to clear his trade in

the format prescribed by NSE/BSE and suitably modified by SHCIL. The

agreement has to be signed before the TM begins his trading. A copy of the

CM-TM agreement will be forwarded to NSCCL/BSE along with the

agreement the trading member should also submit :

o Board Resolution appointing SHCIL as clearing member

o Attested copy of Memorandum & Articles of Association

o Copy of SEBI registration certificate

Consent: At the application stage, a TM must mention that Stock Holding

Corporation of India Ltd. (SHCIL) will clear his trades.

o Letter of consent from SHCIL can be obtained, which the TM has to

forward to BSE/NSE as the case may be.

Application Form: An application form, provided by SHCIL, to be filled by

TM, giving details of addresses, phones, accounts etc. Approved e-mail

addresses should be mentioned in the application for receiving daily bills.

MARGINS: Trading Members have to deposit margins with the Clearing

Member for the purpose of taking Exposure on the Exchange and for daily

settlement. At SHCIL, there are two components of

Margins i.e. initial margin (IM) for exposure and maintenance margin (MM) for

daily settlement.

Initial Margin(IM)

Minimum Rs. 10 lakh as initial margin (IM) in either of the following ways:

Entire Rs. 10 lakh in cash OR

Rs. 2 lakh in cash and Rs. 8 lakh as cash equivalent * OR

65


Rs 2 lakh in cash, balance Rs. 8 lakh as a combination of cash

equivalent * and specified demat securities (subject to maximum of Rs.

5 lakh after valuation)

Note: The above proportion is valid for NSE. For BSE minimum cash requirements

are Rs.2.5 lakh. BSE Members can start trading with Rs 7.50 lakh(Rs.2.5 lakh in cash,

balance Rs. 5.00 lakhs as a combination of cash equivalent and specified demat

securities (subject to maximum of Rs. 2.50 lakhs after valuation)

Maintenance Margin (MM)

A trading member has to deposit a certain percentage of initial margin (IM) in cash

only towards his daily settlement of marked-to-market margins, premiums or any

other charges payable by the TM.

Initial Margin(IM) ** Maintenance Margin (MM)

More than or equal to Rs. 50 lakh 10% of initial margin in cash only ***

Less than Rs. 50 lakh 20% of initial margin in cash only

* Cash equivalent includes Bank guarantee, fixed deposit receipts or govt. securities

(As per J R Varma Committee report on derivatives)

** The specified initial margin range should be for a period of at least one continuous

month

** Subject to bank operating powers and banker’s certificate on credit limits for the

bank account

Reporting

SHCIL provides various reports relating to the trading and settlement of its clients on

its website .These reports can be downloaded by the client by using a unique PIN

number and password. The main reports that are provided are :

Daily trades reports

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Marked-to-market profit/loss reports

Collateral margin reports

Account statements

Outstanding position reports

Span margins requirement report three times during the day based on the

parameters specified by the exchange

Monthly ledger reports and any other relevant report required by a client is

also provided.

Non-resident Indian

Introduction

Over the years, SHCIL has grown to become a major player in the capital

market. With a network of more than 120 offices operating across the

country and franchisees operating abroad, SHCIL provides Depository

Participant and related services close to 0.7 million satisfied investors out

of which over 6000 are NRI Clientele.

SHCIL has a full fledged NRI cell operating specifically to cater needs pertaining to

Depository account opening and maintenance. NRI cell co-ordinates with prospective

NRI customers, collects and assists in obtaining the relevant documents and ensures

the Depository Account is opened hassle free. NRI Cell collects physical certificates

to be sent for demat and ensures that the certificates are in order and can be sent for

dematerialisation under the existing guidelines issued by the depositories. Instructions

for trade are accepted by fax on request by NRI Cell to ensure timely settlement of

trades. In this case later on the client needs to regularize by sending the original trade

delivery instruction. Any tariff and billing related query are addressed by NRI Cell. In

short NRI Cell is a single point contact for any matter relating to NRI Depository

operations.

Open account

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Before you open your account….

Ascertain your NRI Depository Account status as per guidelines issued by

RBI from time to time.

In case of Joint Account, status of the first holder is reckoned for all purposes.

If scrip is held by three holders of whom the first is a NRI and the other two or

residents, then the account falls under NRI category.

Accounts have to be opened in the exact order in which the names appear on

the certificate. Holding pattern A B is not the same as B A.

Get your account opening form details right….

All columns are filled in. Write NA wherever not applicable.

Specify status as Non Repatriable (NRO) or repatriable (NRE). Status cannot

be changed once account is opened.

Bank account details should be compulsorily provided along with 9 digit

MICR code

Ensure that the account status and bank details are as below :

- If the status is NRE, bank details can be "NRE' or 'NRO'.

- If the status is NRO, bank details can be 'NRO' only.

Copy of RBI approval is not mandatory and the standing instruction for

automatic credits may be marked as 'Y' without furnishing RBI approval.

However, the onus of reporting to RBI is on the client.

Proof of identity by way of Copy of your Passport and Bank Account

attestation is compulsory.

Initial the agreement on the front side and sign in the order of holders in the

backside of the agreement

Where the account is being opened by POA(proof of address)

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i. The POA shall sign at all places in lieu of the original holder(s).

However, the photographs will be those of the original holder(s) only.

ii. A certified true copy of the POA has to be provided with the account

opening form along with the signature and photograph of the POA.

iii. The account may be operated either by the original holder or by the

POA.

Nomination

i. Nominee may be any person other than the account holders.

ii. Photograph of the nominee has to be affixed on the nomination form.

iii. The nominee must sign across the photograph and in the space

provided below.

iv. If the nominee is a minor, the guardian shall sign at all places where

the nominee is supposed to sign.

v. Photograph of the guardian also has to be affixed on the nomination

form.

Custodial

Introduction

Since its commencement in 1988 as the first dedicated Custodian in the

country, SHCIL has been providing Custodial Services of international

standards to Domestic Mutual Funds, Financial Institutions and Foreign

Institutional Investors.

With almost 70% of the Institutional business in its fold, SHCIL has evolved over the

times to meet the changing requirements of dynamic markets and demanding clients.

A dedicated pool of trained and highly experienced professionals work literally round

the clock on state of the art computer systems, dedicated communication channels,

69


well connected to Client institutions, Stock Exchanges, Clearing houses, Depositories

and leading Institutional brokers. In terms of collective man-years, SHCIL has the

most experienced team in the entire Industry.

Trade processing services

SHCIL has specially trained personnel handling thousands of trade instructions

involving large values on sophisticated systems using digital signature on STP

(Straight Through Processing) systems, ensuring smooth trade confirmations to Stock

Exchanges, reporting and resolution of mismatches with Clients, etc.

Settlement services

Institutional trades are either settled through the Clearing House of the Stock

Exchanges or as DVP directly with the contracting broker or Counter Party. As a

Custodian SHCIL strives for timely settlement of Funds and Securities.

Funds are collected/ deposited from/to client and settled with the Clearing Houses/

Brokers/ Counter Parties.

In the present context, most of the Institutional trades are settled in the Depository

mode. For the Institutional segment alone, SHCIL has a unique clearing code on the

two principal stock exchanges and separate DPM units on both NSDL and CDSL.This

ensures smooth settlement of transactions on both Exchanges/Depositories, based on

the deliverables and receivables received by them for each settlement.

For the occasional delivery and receipt of securities in the physical mode, SHCIL

ensures prompt scrutiny, processing and lodgment of securities with the respective

Company/Registrar and Transfer Agent, with the objective of final transfer to the

purchaser, with objections handling if needed, thus facilitating delivery of securities

to the parties concerned on sale.

Physical custody services

The transferred physical securities, when received, are held in state-of-the-art, high-

security vaults on behalf of the clients. A pioneer in introducing the bar-coding

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system to track certificates, SHCIL ensures the availability of each and every share

certificate at a moments notice.

Institutional DP services

SHCIL has installed dedicated DPM’s (Depository Participant Modules) on both the

Depositories, viz. NSDL (National Securities Depository Ltd) and CDSL (Central

Depository Services Ltd). A dedicated Institutional DP team at SHCIL addresses

your need for all core DP services like conversion of physical holdings into electronic

form, settlement of trade instructions, rematerialisation, repurchase and pledge

instructions, providing of holding and transaction statements and daily reconciliation

of client holdings.

SHCIL also provides special services like providing dematerialisation and corporate

action follow-up, saleable holding reports used by many fund managers, monitoring

of CP Redemptions, prepayments and providing customized reports like put/call

forecasts and non equity holding reports.

Corporate Actions, Primary markets and related services

The Corporate Actions team ensures timely collection of monetary and non-monetary

benefits on behalf of the client. It covers all activities relating to Corporate Actions

like calculation of entitlements, reconciling with companies/registrars prior to due

date, collection of monetary Corporate Actions from the premises of the

company/registrar and transfer of the same to clients. In case of any shortage, active

follow up is done with each company. Customized reporting to clients on the status of

Corporate Actions is done periodically.

This team is supported by a highly specialized ‘Databank’ team, which is unique to

SHCIL. This team tracks over 8500 Companies, over 12000 issued securities, 2500

Registrars, besides all relevant information available in all main stock Exchanges and

Depositories. The team ensures prompt availability of information on all Corporate

Announcements, ISIN listings etc to the Corporate Actions team. The Primary

Markets team takes care of applications on behalf of clients for primary market issues,

71


calculates the entitlements, follows up for allotment or refunds and sends customized

reports to clients.

Client relationship management

Every Institutional client is assigned to an experienced Manager with a dedicated

team whose sole task is in resolving special issues relating to the client. This team acts

as a single point contact for all Client matters. They also ensure standardized and

highly customized reports to clients at desired intervals.

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Swot analysis

SWOT ANALYSIS

STRENGTHS:

1. Wide coverage throughout the country.

2. Promoted by 7 financial institutions.

3. Largest account holders

4. Largest custodian.

5. Catering to Indians as well as NRIs and FIIs.

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6. One stop shop for all financial solutions.

7. Advanced system network.

8. SHCIL is the first depository participant. It has the opportunity of holding

more than 7000000 accounts at all centers.

9. Multiple products and services: SHCIL provides a variety of services under

the same roof.

10. It is the member of both NSDL and CDSL.

11. The company has highly computerized, state of art technology to facilitate the

business and minimize the risk from automated operations. .

12. Since the main business of the company is providing DP services, unlike the

service provided by banks it leads in specialization.

13. The variety of services offered has enabled SHCIL to have a much more

competitive edge about financial services than its competitors.

WEAKNESS

1. Lack of aggressive marketing.

2. Improper billings.

3. Expensive.(Because separate account has to be opened according to holdings).

4. Less investment in advertising.

5. The clients are not provided any incentives or motivations, which would

encourage them to make timely payment.

6. The company has not undertaken sufficient steps to create awareness among

the clients about SHCIL. The only procedure adopted is the Internet.

7. The HR department is placed in Mumbai. So the newly recruited employees

lack sufficient training facilities.

OPPORTUNITIES

1. E – Broking.

2. Acquisition of smaller DPs.

3. Collaboration with banks.

4. New products.

74


5. The company can take steps to increase the awareness among the clients and

thereby increase the business.

6. The company can attract more number of franchises.

THREATS

1. Increased cost as perceived by customers.

2. Fluctuating market conditions affect the business.

3. The number of competitors is increasing at a higher rate. Their charges are

also low when compared to the charges of SHCIL. The nearest competitors are

banks providing DP services along with their regular services.

4. The company does not charge any amount for closing the account. Since

retaining the customer is very important and most of the customers will not

think of closing the account at time of opening the account the company can

charge some for closure.

5. The discounts and offers given by other DP’s when compared to offers of

SHCIL are leading to reduction in the number of clients.

75


76


Methodology

77


Methodology

Type of research Descriptive and Exploratory

research.

Sampling technique Non probability sampling.

Sampling size 50

Sample description Delhi stock exchange, ICICI,

IL&FS, UTI, SHCIL.

Instrumentation technique Interview, questionnaire

Sources of data collection Primary data was collected by

conducting Interview and secondary

data was collected from magazines,

books, and internet.

Software used for data analysis MS excel

It is a survey method. The questionnaire and interview schedule, personal interview

will be relied upon for gathering primary data. An aggregate of 40 respondents from

various Depository Participants responded to the questionnaire.

For the purpose of secondary data books, articles, reports, annual reports of the stock

exchanges, news papers, CD-ROM, Internet, Nifty, BSE, BGSE, are planned to be

used.

78


Analysis & Interpretation

79


ANALYSIS

I used a structured questionnaire for eliciting the required responses relating to Depository Services at SHCIL.

50 respondents were approached for this purpose, out of which 40 respondents co-operated with the researcher in filling the questionnaire.

The various responses were classified, and tabulated. A simple statistical analysis

was made by the researcher.

An attempt is made to present the analysis covering different aspects of Depository

Services at Stock Holding Corporation of India Limited.

80


1. Table showing the age group of respondents

Age (In years) Frequency %

20-30 8 20

30-40 12 30

40-50 16 40

50 & above 4 10

Total 40 100

Table No: 1

Graph showing age group of Depository Holders

Graph No: 1

Analysis: From the above table we can see that the normal range of Depository

Holders age varies between 20-50 yrs, with the highest 40% falling between 40-60

followed by 30% falling between 30-40 and 20% between the age group 20-30 and

the lowest is 60 & above.

Inference: 40% of brokers and investors fall in the age group 40-60yrs.

81

05

1015202530354045

20-30 30-40 40-50 50 &above

Age

Respondents


2. Table showing the number of respondents investing in shares

Particulars Frequency %

Yes 32 80

No 8 20

Total 40 100

Table No: 2

Graph showing the Number of share holders

80

20

yes

no

Graph No: 2

Analysis: From the above Graph it can be analyzed that 80% of the respondents are

Stock Holders. Remaining 20% of the respondents are not.

Inference: 80% of the respondents are the stock holders.

82


3. Table showing the No. of years holding & trading in SHCIL.

Years Frequency %

0-5 16 40

5-10 12 30

10-15 8 20

15-20 4 10

Total 40 100

Table No: 3

Graph showing the No. of years the respondents holding and trading in SHCIL

Graph No: 3

Analysis: From the above it can be analyzed that the company has been grown well

from past 5 to 10 yrs. 30% of the people are trading from 5-10 years & 40% from 0-5

years.

Inference: 40% of the Depository Holders are trading between 0-5 years.

4. Table showing how secure the securities in opting the demat.

83

0

5

10

15

20

25

30

35

40

Respondents

0-5yrs 5-10yrs 10-15yrs 15-20yrs

Years


Particulars Frequency Percentage

Excellent 24 60

Very Good 8 20

Good 6 15

Average 2 5

Total 40 100

Table No: 4

Graph showing the degree of securities in Demat Account

Graph No: 4

Analysis: From the above table survey inferred that 60% of the Depository Holders

are giving their consent as excellent about Demat. That is the securities of the

shareholders in electronic form is more safe and secured.

Inference: Dematerialization plays a major role in providing safety and security to

the holders.

5. Table showing the most preferred DP Product


Broking/Internet

Trading

8 20

84

ExcellentVeryGood

GoodAverage

60

2015

50

10

20

30

40

50

60

%


Mutual Funds 16 40

Government Bonds 8 20

Insurance 8 20

Total 40 100

Table No: 5

Graph showing the most preferred DP Product

ern

et

Tra

din

g

Bro

kin

g/I

nte

rne

t

Mutu

al F

unds

Govt.

Bonds

Insura

nce

20

40

20 20

0

10

20

30

40

Graph No: 5

Analysis: The above survey reveals that 40% of the holders are interested to invest

their savings in Mutual funds because they are less risky. The Government bonds,

Broking, & Insurance constitute the next preferred DP product.

Inference: Majority of 40% of holders are interested in Mutual Funds.

6. Table showing the source in which the information is available regarding SHCIL


Newspaper 4 10

Magazines 4 10

85


Word of mouth 16 40

Internet 16 40

Total 40 100

Table No: 6

Graph showing the source in which the information is available

1010

40

40Newspapers

Magazins

Word of mouth

Internet

Graph No: 6

Analysis: From the above survey it is revealed that the information about the SHCIL

is more effective through Internet and Word of mouth, i.e. the 40% from Internet &

40% from Word of mouth, 10% is followed by Newspapers & 10% by Magazines

Inference: Internet constitute the largest source of SHCIL related information..

7. Table showing the selection of stock exchange to traded by both

shareholders and brokers.


NSE 20 50

BSE 20 50

TOTAL 40 100

86


Table No: 7

Graph showing the selection of stock exchange to trade by the shareholders

50 50

0

10

20

30

40

50

BSE NSE

Graph No: 7

Analysis: From the above survey it is clearly inferred that 50% of shareholders are

using BSE for trading and also remaining 50% are trading in NSE.

Inference: Both NSE & BSE are equally preferred for trading purpose, accounting

for 50% each of the responses.

8. Table showing the attribute of services expected by the investor


Quality of Service 8 20

Market Updates 8 20

Returns Provided 12 30

Safety & Security 12 30

Total 40 100

Table No: 8

87


Graph showing the attribute of services influences the investors

Graph No: 8

Analysis: From the above table it can be inferred that equal number of respondents

i.e. 30% each consider Returns and Safety as important attributes followed by other

attributes such as 20% each consider Quality of service and Market updates.

Inference: Safety & Security, Returns constitute the most preferred attributes.

9. Table showing areas of investment that most investors prefer in SHCIL


Equity Shares 16 40

Mutual Funds 12 30

Bonds 8 20

Others 4 10

Total 40 100

Table No: 9

Graph showing areas of investment that the most investors prefer

88

0

5

10

15

20

25

30

Quality ofService

MarketUpdates

ReturnsProvided

Safety &Security


40

30

20

10

0

5

10

15

20

25

30

3540

EquityShares

MutualFunds

Bonds Others

Graph No: 9

Analysis: Majority 40% of the investors are having the habit of investing in the

Equity shares, 30% of them have invested in Mutual funds and 20% are invested in

Bonds & 10% in others.

Inference: Equity shares are the best options for investment in which investors are

preferring it first.

10. Table showing whether SHCIL provide Tailor made services


Yes 16 40

No 24 60

Total 40 100

Table No: 10

Graph showing the Services provide are Tailor made or not

89

40

60

Yes

No


Graph No: 10

Analysis: From the above table we can analyze that 60% of the Depository holders

are not satisfied with the services. Out of 100 only 40% of investors are accepted as

Tailor made services.

Inference: From the above analysis we can infer that majority of investors will

expect better service.

11. Table showing through which SHCIL provides the Value-added services

to clients


Online transaction

updates

16 40

Faxes / E-mails 8 20

Portfolio updates 4 10

Daily updates (Website) 12 30

Total 40 100

Table No: 11

Graph showing the Value-added services provided by SHCIL

90


Graph No: 11

Analysis: From the above table we can analyze that the 40% of the respondents says

that the value-added services provided by SHCIL is through online transaction, 30%

by website, 20% E-mails, 10% portfolio updates.

Inference: Majority of the respondents accept that the value-added services are

through online transaction updates.

12. Table showing how satisfying is SHCIL in terms of Infrastructure & the

hardware, software installed for serving clients


Excellent 12 30

Very Good 20 50

Good 6 15

Average 2 5

Total 40 100

Table No: 12

Graph showing how satisfying SHCIL is in terms of Infrastructure, software etc

91

40

20

10

30

05

1015202530354045

tes

Online trans.Updates

Faxes / E-mails

Portfolioupdates

Dailyupdates/website

30

50

15

5

0

10

20

30

40

50

excellent Very Good Good Average


Graph No: 12

Analysis: The above survey reveals that the Depository holders are satisfied in terms

of infrastructure and software with the result of 30% as excellent, 50% as Very good

followed by 15% as Good and 5% as Average.

Inference: Majority of the DP holders are satisfied.

13. Table showing how efficient & effective the DP services of SHCIL

compared to other financial institutions

Particulars Frequency PercentageExcellent 20 50Very Good 16 40Good 4 10Average 0 0Total 40 100

Table No: 13

Graph showing how efficient & effective the DP services of SHCIL compared to

other financial institutions

92

50

40

10

00

10

20

30

40

50

60

Excellent Very Good Good Average


Graph No: 13

Analysis: From the above table it is analyzed that 50% of respondents are agreed as

excellent & more effective DP services in SHCIL when compare to other institution.

40% of respondents agreed as Very good, 10% as Good & 0% as average.

Inference: DP services of SHCIL is excellent when compare to other financial

institutions.

14. Table showing how satisfactory are the interest rates in terms of loan

against demat held in DP.


Yes 16 40

No 24 60

Total 40 100

Table No: 14

Graph showing the interest rates in terms of loan against demat.

93

40

60

Yes

No


Graph No: 14

Analysis: From the above table it is analyzed that 60% of respondents are not

satisfied with interest rates in terms of loan against demat.

Inference: Through the graph we can say that the interest rates are high.

15. Table showing how safe & secure the demat is


Yes 36 90

No 4 10

Total 40 100

Table No: 15

Graph showing how safe the demat is

94

90

10

Yes

No


Graph No: 15

Analysis: From the table it is analyzed that 90% of Depository holders are feeling

that demat is safe & secure, whereas only 10% are feeling unsatisfied.

Inference: Majority of respondents are safe with demat.

16. Table showing service charges charged by SHCIL.


High 24 60

Reasonable 16 40

Low 0 0

Total 40 100

Table No: 16

Graph showing service charges charged by SHCIL.

95

60

40

00

10

20

30

40

50

60

70

High Reasonable Low


Graph No: 16

Analysis: From the above survey it has inferred that 60% of respondents are feeling

that the service charges charged by SHCIL is high, and 40% as reasonable, 0% as

low.

Inference: Majority that is 60% of respondents are not satisfied with service charges.

17. Table showing how effective the SHCIL in settling the stock.


Fast 20 50

Slow 20 50

Total 40 100

Table No: 17

Graph showing how effective the SHCIL in settling the stock.

Graph No: 17

96

50 50

0

10

20

30

40

50

60

Fast Slow


Analysis: From the above table it can be interred that 50% of the respondents are

telling fast in settling the stock & other 50% are telling slow in settling.

Inference: The respondents are equally responding for the effectiveness in settling

the stock.

18. Table showing how satisfactory is the on-line trading


Excellent 20 50

Very Good 8 20

Good 12 30

Average 0 0

Total 40 100

Table No: 18

Graph showing how satisfactory is the on-line trading

97

50

20

30

00

10

20

30

40

50

60

Excellent Very Good Good Average


Graph No: 18

Analysis: The responses to the On-line trading ranges between ‘Good’ and

‘Excellent’, 100% of the respondents record their responses between ‘Good and

Excellent.

Inference: It is inferred that the number of respondents are very much satisfied with

the on-line trading in SHCIL.

Summary of Findings

98


FINDINGS

Based on the data analysis and interpretation, the following findings noted:

20% of the respondents, who are not stock holders are under the age group of

20-30 and 50 and above.

Out of the entire DP holders 10% of them trading in 15-20 years, 20% are 10-

15 years, 30% are 5-10 years, 40% are 0-5years. This indicates the popularity

of the organization in the last 10 years, during which time 70% of the existing

members are trading from

0-5 years, whereas the previous 10 years the total percentage is only 30%.

This indicates a healthy trend form last 10 years.

From the analysis part it shows the most preferred DP product is Mutual

Funds. It shows that the Interest of the investors would be funds which has

less risk and high returns. This is substantiated the fact that 40% of the

holders are interested to invest in Mutual Funds and other investments are

distributed as Bonds, Broking and Insurance.

99


From the survey it is noted that the best method of spreading information

seems to be Internet, which draws the interest of investors better than any

other media.

The survey indicates the trading is equally shared between BSE and NSE.

The respondents gave equal interest to Safety and Security, Returns provided

and quality of service, only 10% as Market updates.

Therefore it is essential for the company to give more priority about

Safety and Security and returns.

Though the Equity shares has got the highest risk, the investors are willing to

take risk by investing in Equity shares for higher returns since the SHCIL is

doing well.

It is also noted that 60% of the investors expect Tailor-made services.

It is noted from the survey the Value-added services provided by SHCIL is

through Online updates.

The survey indicates majority of respondents are satisfied in terms of

Infrastructure, hardware and software installed for serving clients.

The services provided by the SHCIL is better when compared to other

financial institutions.

The investors feel that the Interest rates provided or charged by SHCIL is high

against demat held in DP.

The survey indicates that the investors are more safe and secured from the

demat in SHCIL

100


Recommendations &

Conclusion

101


RECOMMENDATIONS

Since the interest and web based communication is getting popular SHCIL

should update their website at least on a weekly basis so that the major

percentage of the remaining i.e. 20% can be brought in.

Since Dematerialization plays a major role in influencing DP holders there

must be increased effort in promoting enhanced services involving security

and safety.

To encourage the existing and prospective shareholders good returns must be

ensured in addition to security and safety.

Since the Investors expect better service form SHCIL, it should provide value-

added services.

It is necessary for the organization to sustain their primary position as compare

to other Financial Institutions as innovative and useful services.

It is necessary to reduce the service charges charged by SHCIL

It is also necessary to reduce the Interest rates on loans against demat.

The online trading efforts must be made more scientific and effective.

102


Conclusion

On the whole, my project at SHCIL was worthwhile as I got the opportunity to learn a

lot about the capital market. It was a wonderful experience interacting with employees

of the organization and simultaneously enhancing my knowledge and skills about

stock market operations. I got to know about the process of dematerialization, account

opening and how the trades department settles the various transactions etc.

Working at SHCIL and preparing this project report was a learning experience and I

shall make immense use of it in my career.

103


ANNEXURE.1

BIBLIOGRAPHY

BOOKS:

AUTHOR TITLE OF THE PUBLISHER’S PLACE OFPUBLICATION BOOK NAME

GORDEN “Financial Markets and Himalaya Delhi AND Services”NATRAJ

AVADHANI “Investment and Securities Himalaya Delhi Markets in India”

PRASSANNA “Financial Management” Tata McGraw DelhiCHANDRA Hill

IM PANDEY Financial management Vikas Delhi

104


MAGAZINES:

Dalal Street

Business today

Money

Business India.

NEWS PAPERS:

The Economic Times

Business standard

Outlook money

INTERNET / WEBSITE

www.google.com

www.online.stockholding.com

www.Sharekhan.com

www.businessweek.com

105


ANNEXURE.2

STUDY ON DESCRIPTIVE ANLYSIS OF THE DEPOSITORY

PARTICIPANTS

QUESTIONNAIRE

1. Name of the Respondent …………………………………….

2. Address and Phone No. ………………………………...........

3. Sex

Male Female

4. Occupation

5. Age Group (in years)

20-30 30-40

40-50 50-60

6. Are you a Share holder?

Yes No

7. Since how long are you holding and trading the securities in SHCIL?

0-5yrs 5-10yrs

10-15yrs 15-20yrs

106


8. How secure do you feel by opting your securities in demat form?

Excellent Very Good

Good Average

9. Which DP Product do you prefer?

Broking/Internet trading

MF Mobilization

Government Bonds

Insurance

10. Through which source do you avail information regarding SHCIL?

Newspaper

Magazines

Word of mouth

Internet

11. What is the most preferred area of avenues of investment?

Mutual Funds

Government Bonds

Equity Shares

Others Specify

12. Does SHCIL provide Tailor- made services?

Yes No

13. What are the attribute of services expected by the investor?

Quality of Service

107


Market Updates

Returns Provided

Safety and Security

14. The SHCIL provide Value-added services to client by

Online transaction updates

Faxes / E-mails

Portfolio updates

Daily updates

15. How satisfying is SHCIL in terms of Infrastructure and the hardware and

software installed for serving its clients?

Excellent Very Good

Good Average

16. How efficient and effective is the DP services of SHCIL when compared to other

financial institution?

Excellent Very Good

Good Average

17. The loan against demat shares held in the DP a/c with SHCIL is satisfactory in

terms of interest rates

Yes No

108


18. Do you think demat is safe and secure?

Yes No

19. The service charges charged by SHCIL?

High Reasonable Low

20. How often the stocks are settled?

Fast Slow

21. How satisfying is the On-line trading for you?

Excellent Very Good

Good Average

109