PROJECT SYNOPSIS“Working Of Depository System in Indian Stock Market” With reference to “SHARE KHAN STOCK BROKING PVT LTD”VIJAYAWADA Project synopsis submitted to the Andhra University, Visakhapatnam in partialfulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION Submitted BY Ms. TEJASWINI.N Regd No: 110278602050 PROJECT GUIDE Mr. S.RAVI KUMAR DEPARTMENT OF MANAGEMENT STUDIES VESTAL ACADEMY OF I.T AND MANAGEMENT (Approved by A.I.C.T.E, New Delhi & Affiliated to Andhra University, Visakhapatnam) G.N.T. ROAD, VATLURU, ELURU W.G. – 534 007 2010-2012
INTRODUCTION A depository system where is a place to deposit something for safekeeping as bankin which funds or securities are deposited by other under the terms of depository agreements.The principal function of a depository is to dematerialize securities and enable theirtransactions in book-entry form. The securities are transferred by debiting the transferor’sdepository account and crediting the transferee’s depository account. The main objective is tostudy the trading and settlement procedure in the exchange with particular online procedureand manual procedure that existed before online trading. The another objective of the studythe greater benefits of the depositories. The study of dematerialization of shares procedures,demat account, transfer of securities and trading and settlement of demat securities. The studyof services provided by NSDL. The inception of the depository system in the Indian CapitalMarket has been only during the 90’s. However, when it has finally arrived it was a welcomechange for the investors who were bogged down with many a problem of scrip based trading.The role played by the companies in encouraging its shareholders to convert their stock intoelectronic form. Their attitude of being receptive to changing conditions, and to go in for“demat” is a step in the right directions.
OBJECTIVE OF THE STUDYTo understand the basic term and process in depositary system.Get specific knowledge about NSDL and CSDL and its investor partners.Provide adulate and desirable information for the readers.To find out that factors or speculations those are responsible for creating anegative image of DS in the mind of investor.Getting the information about the awareness of depository system.Find out the satisfactory level of the investors regarding this system.
SCOPE OF THE STUDYThe scope of the study gives a detail description of the following activities: Dematerialization Rematerialisation Electronic settlement of trade Electronic credit of securities allotted in public, rights and bonus issue. Pledging or hypothecation of dematerialized securities. Freezing of demat account.
RESEARCH METHODOLOGYResearch Methodology refers to search of knowledge .one can also define researchmethodology as a scientific and systematic search for required information on a specific topic.TYPES OF RESEARCHANALYTICAL RESEARCH: It has to used facts or information already available and analyzesthese to make a critical evaluation of material.SAMPLE SIZE: Considering the constraints it was decided to conduct the study based onsample size of 50 people in specific age groups.PRIMARY SOURCE:I have gathered information about our project from the interaction with the customers of ourcompany i.e. Sharekhan. The sampling method used was basically convenience samplingand most of the calls made were cold calls made on the generated database of recipients ofother companies.SECONDARY SOURCE:The secondary data, I have collected from the various websites of Sharekhan, variousjournals, magazines etc.
LIMITATIONS OF STUDYPeople were not willing to answer the entire questionnaire due to the less timeavailable to them.Some respondents might be hesitant to divulge personal and financialinformation which can affect the validity of all responses.There is lack of awareness among people about investing in stock market. So thepeople who are aware of such things were found in specific areas for surveypurposes.Most people are comfortable with traditional system in small towns and like totrade from their respective brokers, hence not providing a true opinion of theirs.Some of the respondents who did not do online trading were able to respond toonly few questions.The survey was done in the city and may not truly express the opinion of wholecountry.
PROFILE OF INDUSTRYA stock market or equity market is a public entity (a loose network of economictransactions, not a physical facility or discrete entity) for the trading ofcompany stock(shares) and derivatives at an agreed price; these are securities listedon a stock exchange as well as those only traded privately.A stock market is a market where company stock is traded between people whowant to buy the stock and people who want to sell stock. Just the same as a fishmarket where people want to buy and sell fish or a cattle market where cows areexchanged between buyers and sellers. Stock is just a slice of a company/organisation, if you own over 50% of the stock then you own a company.The size of the world stock market was estimated at about $36.6 trillion at the startof October 2008.The total world derivatives market has been estimated at about$791 trillion face or nominal value,11 times the size of the entire worldeconomy.The value of the derivatives market, because it is stated in termsof notional values, cannot be directly compared to a stock or a fixed incomesecurity, which traditionally refers to an actual valueA stock market is made up of several components... Stock Exchanges Companies Brokers Traders Indexs
PROFILE OF SHAREKHAN LTDSharekhan is stock broking company. Share Khan comes under retail arm of SSKI(Shripal Sevantilal Kantilal Ishwarlal ) investors Services Pvt. Ltd. offers World-class facilities for buying and selling Shares on BSE and NSE, Demat Services(DP) Derivatives (F&O). SSKI group also comprises of Institutional broking andCorporate Finance. Sharekhan does not claim expertise in too many things.Infact Sharekhan runs Indias largest chain of share shops with over hundredoutlets in more than 80 cities! They have 14 branches, 400 franchises also having466 shops in 210 cities. 400 crore daily dealing allover India with almost 4000employees and 100000 trading customers.CURRENT POSITION VISIONTo empower the investor with quality advice and superior service to help him takebetter investment decisions. We believe that our growth depends on clientsatisfaction.MISSION To provide the best customer service and product innovation tuned to diverse needs of clientele Continuous up-gradation with changing technology, while maintaining human values. Respond to progressive globalization and achieving international standard.
THEORETICAL FRAMEWORKDEPOSITORYA depository is an organization which holds securities of investors in electronicform at the request of the investors through a registered Depository Participant. Italso provides services related to transactions in securities. In the DepositorySystem, the securities of a shareholder are held in the electronic form b yconversion of physical securities to electronic formt h r o u g h a p r o c e s s c a l l e d dematerialization (demat) of share certificatesand facilitates transactions electronically without involving any share certificate ortransfer deed. Depository system is playing a significan t role in stockmarkets around the world and h e n c e h a s b e c o me p o p u l a r a n dp r e v a l e n t i n ma n y a d v a n c e d c o u n tr i e s . I n I n d i a t h e NationalSecurities Depository Ltd. (NSDL), promoted by Industrial Development Bank ofIndia, Unit Trust of India, and National Stock Exchange is the firstdepository. A second Depository by name Central Depository Services(India) Ltd, promoted by The S t o c k Ex c h a n g e , M u mb a i a n d B a n k o fI n d i a h a s b e e n r e g i s t e r e d r e c e n t l y a n d wi l l commence its operationsshortly. Investors have choice of two depositories now National SecuritiesDepository Limited (NSDL) and C e n t r a l D e p o s i t o r y S e r v i c e s ( I )Limited (CDSL)C o n s t i t u e n t s o f Depository system:- Depository Depository Participants (DPs) Share Registrar/Issuers Investor Clearing Corporation/Member .
FINDING1. Which current broker are you trading? I found that 35% people are trading with India Bulls, 30% people are trading with Religare broker, 25% people are doing trading with Karvy and 10% people said that they are trading with Reliance Money.2. Do you have a PAN card? According to this survey, we find that 65% people have PAN card and only 35% peoplehave not PAN card.3. Do you know about DEPOSITORY services? It was found that 30% people know about depository services, 28% people have noknowledge about it, 42% people have a little knowledge of depository services4. Do you know about who has control over depository services? 65% respondents said that CDSL have control over all depository services,25% peoplesaid that NSDL have control over depository system while 10% people said that both have acontrol on depository services.5. How much charges do you pay for Demat account? 65% people pay less than Rs. 500 for Demat a/c,35% people pay more than500 as Dematcharges.6. Is nomination facility available in Demat account? It was found the nomination facility is also available in demat account.7. Who levy charges for dematerialization of securities? Out of 10 people , 25% people said that CDSL imposed charges for dematerialization, 13%people said that NSDL and 62% people said that depository participant may levy charges fordematerialization of securities.
SUGGESTIONRegular statements of holdings should be made available at regular intervals.The statement of holdings should be provided with the sale and purchase ofthe shares.Awareness of functioning of this system should be spread to the publicthrough advertisement.Clear picture of the deductions made by depository participant or the chargeslevied on the customers should be provided in black and white.Proper feedback should be taken into consideration. For e.g. calls should bemade when the account is opened.Sharekhan should expand its network by opening its more branches andfranchise and there should be easy accessibility of services rendered by thissystem.The company should launch more welfare schemes from time to time.
CONCLUSION Sharekhan Demat Account is better than any other Demat account. Sharekhan have good return of investment. A good brand is always welcomed over here. People are aware of quality so they go for ready to spend bucks of money. At last all conclusion be concluded by that Broking is still growing industry in India.