Projectsformba.blogspot.com      A Descriptive Model on ‘Demat Operations’ – A case study for                    Integrate...
Projectsformba.blogspot.comWhats the security that a person has with respect to proof of his holdings? Upon openingan acco...
Projectsformba.blogspot.comof request. Electronic holdings can be converted back into certificates, if so desired, in asim...
Projectsformba.blogspot.com                                    ♦ Faster settlement cycle –The exclusive Demat segments fol...
Projectsformba.blogspot.com     Periodic status reports to investors on their holdings and transactions, leading to      ...
Projectsformba.blogspot.comNRI Account:Repatriable/ Non-repatriable:   •   Completed Application form, duly signed by all ...
Projectsformba.blogspot.com    A duly stamped & signed Client Master report of the nominee account, if it     belongs to ...
Projectsformba.blogspot.com       At the time of dematerializations of any securities into these accounts, the        acc...
Projectsformba.blogspot.com       XYZ, but his "clearing member ALBM" account will have to necessarily be with       the c...
Projectsformba.blogspot.comTrading in dematerialised securities is quite similar to trading in physical securities. Themaj...
Projectsformba.blogspot.comtransfer will take place on the "execution date" mentioned in the instruction. Delivery toCC in...
Projectsformba.blogspot.comProcedure in case of an Off-Market Transfer Involving Two Clients:The selling client will have ...
Projectsformba.blogspot.com   •   For debiting the clearing account or the beneficial account with NSDL, the form       fo...
Projectsformba.blogspot.comSpecial services offered by DPs with respect to these accounts are asfollows:Standing Instructi...
Projectsformba.blogspot.comConsolidation of Accounts:Some clients could have opened multiple accounts to dematerialize the...
Projectsformba.blogspot.com                               INDUSTRY PROFILEAbout NSDL       Although India had a vibrant ca...
Projectsformba.blogspot.com   •   Standard Chartered Bank   •   HDFC Bank Limited   •   The Hongkong and Shanghai Banking ...
Projectsformba.blogspot.com                              18
Projectsformba.blogspot.comIssuing Companies/ their Registrar & Transfer Agents:       Securities issued by issuers who ha...
Projectsformba.blogspot.com  NSDL Facts & Figures  As on December 31, 2007  Number of certificates eliminated (Approx.)  4...
Projectsformba.blogspot.comAn Investor makes a dematerialization request, along with the investor physicalCertificates of ...
Projectsformba.blogspot.come) Brokers (clearing members (CM)                              COMPANY PROFILEABOUT INTEGRATED ...
Projectsformba.blogspot.comservices that we covered. Now, with a strong presence of 112 branches all over thecountry and a...
Projectsformba.blogspot.comb) Commitment      We have a strong commitment to serve our customers. We understand individual...
Projectsformba.blogspot.com2005 - Adds E-Return filing to its array of services2006 - Opens its 100th branch.       Entry ...
Projectsformba.blogspot.comInvestments: Marketing corporate fixed deposits, debenturesDemat services: Opening depository a...
Projectsformba.blogspot.commore than 10 years holding various positions. In view of his dynamic leadership anddecision-mak...
Projectsformba.blogspot.comMr. K.T. Vinod Kumar - General Manager, Demat DivisionMr. K. Suresh Babu - General Manager, Reg...
Projectsformba.blogspot.comP And in 1914 companies more than 75% of the investors are holding their shares inDemat account...
Projectsformba.blogspot.com                             SCOPE OF THE STUDY # The first scope is to know, what kind of age ...
Projectsformba.blogspot.com                      RESEARCH METHODOLOGYResearch design:Research design can be thought of as ...
Projectsformba.blogspot.comSampling:Convenience Sampling is used for data collection.Research tool:A well-structured Quest...
Projectsformba.blogspot.com              Here Sample size taken is 75. Out of 75, 49 are Male (65.33%)and 26 are Female (3...
Projectsformba.blogspot.com               60               50               40                                            ...
Projectsformba.blogspot.com 35-45                            12                20            32     42.66667 45-55        ...
Projectsformba.blogspot.com                                       Table 4.1.3                 Classification of Respondent...
Projectsformba.blogspot.com Retired                               10              2            12                16 Servic...
Projectsformba.blogspot.com  120  100   80                                                                      Male      ...
Projectsformba.blogspot.com Gender/Expose         Male              Female             Total         Percentage Advertisem...
Projectsformba.blogspot.com                                  Exposure to Stock Market                25                20 ...
Projectsformba.blogspot.com                  Blue Chip        Ordinary        Both              Total         Percentage M...
Projectsformba.blogspot.com                                 Kind of Securities   30   25   20                             ...
Projectsformba.blogspot.com Agro/Farm/Fer                                                   6                           4....
Projectsformba.blogspot.com                                       Population            40            35            30    ...
Projectsformba.blogspot.com Gen/Schemes            Male              Female              Total         Percentage RS.1000 ...
Projectsformba.blogspot.com                                     Scheme  20  18  16  14  12                                ...
Projectsformba.blogspot.com                      Male               Female              Total          Percentage Daily Us...
Projectsformba.blogspot.com                                      Users      25      20      15                            ...
Projectsformba.blogspot.com                       Male              Female              Total         Percentage With CUB ...
Projectsformba.blogspot.com                              Having Trading a/c  50  45  40  35  30                           ...
Projectsformba.blogspot.com <25                                                    49                        65.333333 25-...
Projectsformba.blogspot.com                                     Investors                                                 ...
Projectsformba.blogspot.com Intraday                           12                    5           17             22.666667 ...
Projectsformba.blogspot.com                                          Players   30   25   20   15                          ...
Projectsformba.blogspot.com# In case of delivery they trade once in a while. So, they trade up to 500’ s-1000.# In case of...
Projectsformba.blogspot.com(2) Most are feeling bad of power facility here. Since there is a power shut downand there is n...
Projectsformba.blogspot.com  Most of the investors are exposed to stock market through friends.  Most of the investors cho...
Projectsformba.blogspot.com  Investors must be given awareness of others Schemes, So that they can know theadvantage of ot...
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A descriptive model on ‘demat operations’ – a case study for integrated enterprises (india) ltd

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  1. 1. Projectsformba.blogspot.com A Descriptive Model on ‘Demat Operations’ – A case study for Integrated Enterprises (India) LtdIntroduction:Depository Participant (DP): The investor obtains Depository Services through a DP of NSDL. A DP can be abank, financial institution, a custodian, a broker, or any entity eligible as per SEBI(Depositories and Participants) Regulations, 1996. The SEBI regulations and NSDL byelaws also lay down the criteria for any of these categories to become a DP. Just as one opens a bank account in order to avail of the services of a bank, aninvestor opens a depository account with a DP in order to avail of depository facilities.Though NSDL commenced operations with just three DPs, Depository ParticipantServices are now available in most of the major cities and towns across the country.Demat Trading:Instead of signing the transfer deed as seller and delivering share certificates to a broker,you shall give your DP debit instruction when you sell your shares in the electronic form.You can trade through any broker of your choice registered with the stock exchangesconnected with NSDL but will have to provide the details of your account with the DP.The money would be received from the broker/ paid to the broker in the same fashion asdone in case of buying/ selling of physical shares. The DP will provide you a statementupdated every fortnight giving details of your holdings.Shares bought in the electronic form can be pledged/ hypothecated by making applicationto the DP in the prescribed form. For the purpose of calculation of capital gains tax, thecost of acquisition of shares would be determined on the principle of first in first out. Theprocess of opening an account with a DP is similar to the opening of bank account.Photograph, Introduction and signing the prescribed agreement form are some of therequirements.If there are any discrepancies in your holdings statement or pass book entries, you cancontact your DP. If the problem cannot be resolved at DP end, you can approach NSDL.There is absolutely no restriction to the number OD DPs you can open accounts with. Justas you can have savings or current accounts with more than one bank, you can openaccounts with more than one DP.There is no minimum balance required for your account with DP. In fact you could havenil security in your account. 1
  2. 2. Projectsformba.blogspot.comWhats the security that a person has with respect to proof of his holdings? Upon openingan account with DP, you sign an agreement where the DP indemnifies you for any misuseof your holdings.When any company announces right, bonus or dividend for a particular security, the DPwill give details of the clients having electronic holdings of that security as of recorddate/ book closure to the registrar. The registrar will then calculate the benefits due to allshareholders. The disbursement of cash benefits like dividend or interest will be done bythe registrar whereas distribution of securities entitlements will be done by the DP basedon information provided by the registrarThe investor retains the choice of receiving the corporate benefits in physical orelectronic form. For discrepancies in corporate benefits in the form of securities, you canapproach your DP who will then approach the registrar. In case of discrepancies in cashbenefits, you will have to contact the registrar directly.Features of Demat services in Integrated Enterprise (India) limited In our continuous endeavor to offer the best services to our customers, we provide thefollowing benefits: • Highly competitive service charges • Wide network of 112 branches across the country • Secured transmission and storage of data • Statement of Holdings updated on hourly basis in our websites • Complete range of demat related services • Managed by a team of well organized and specialized personnel • Quick, efficient and simple procedures • Online services such as Speed-e and IDeAS • Relationship Scheme • Trading services • Online connectivity with Head Office • Full fledged Back Office System • Tax related processing services are also conveniently available to all account holdersDemat Process:A request form together with the share certificates desired to be dematerialized is given tothe DP. He sends the request along with the share certificates to the company/ registrarsthrough NSDL for confirmation of its genuineness. After checking the records, theregistrar will destroy the certificates and sends confirmation of dematerialization toNSDL. NSDL then confirms the dematerialization of shares to your DP to credit theholding of shares in your account electronically. This takes about 15 days from the date 2
  3. 3. Projectsformba.blogspot.comof request. Electronic holdings can be converted back into certificates, if so desired, in asimilar fashion as that for dematerialization.Benefits of Demat:In the depository system, the ownership and transfer of securities takes place by means ofelectronic book entries. At the outset, this system rids the capital market of the dangersrelated to handling of paper. NSDL provides numerous direct and indirect benefits, like: ♦ Elimination of bad deliveries-In the depository environment, once holdings of an investor are dematerialized, thequestion of bad delivery does not arise i.e. they cannot be held "under objection".Statistically, in the physical environment, about 20% of delivered stock constitutes baddeliveries. Of these, about 1% is ultimately absorbed by the system as bad delivery cost.Rectification of objection usually involves extensive follow up by the investor. Also, theinvestor cannot sell the securities till they are registered. This means that in the physicalenvironment, every fifth person taking delivery of stock gets securities, the genuinenessto which there is a doubt whereas he parts with genuine funds ♦ Elimination of all risks associated with physical certificates-Dealing in physical securities have associated security risks of theft of stocks, mutilationof certificates, loss of certificates during movements through and from the registrars, thusexposing the investor to the cost of obtaining duplicate certificates and advertisements,etc. This problem does not arise in the depository environment No stamp duty for transfer of equity instruments & units of mutual funds in thedepository(In case of physical shares, stamp duty of 0.5% is payable on transfer of shares). ♦ Immediate transfer and registration of securities –In the depository environment, once the securities are credited to the investors account onpay out, he becomes the legal owner of the securities. There is no further need to send itto the companys registrar for registration. Having purchased securities in the physicalenvironment, the investor has to send it to the companys registrar so that the change ofownership can be registered. This process usually takes around three to four months andis rarely completed within the statutory framework of two months thus exposing theinvestor to opportunity cost of delay in transfer and to risk of loss in transit. To overcomethis, the normally accepted practice is to hold the securities in street names i.e. not toregister the change of ownership. However, if the investors miss a book closure thesecurities are not good for delivery and the investor would also stand to loose hiscorporate entitlements. 3
  4. 4. Projectsformba.blogspot.com ♦ Faster settlement cycle –The exclusive Demat segments follow rolling settlement cycle of T+5 i.e. the settlementof trades will be on the 5th working day from the trade day. This will enable fasterturnover of stock and more liquidity with the investor. ♦ Pay in & pay out of securities & funds is on the same day for scrip less trades –In the exclusive Demat segments the settlement of trades (both securities and funds) is onthe 5th working day from the trade day. This means that a buyer who parts with funds onthe 5th working day, gets the securities on the same day evening and a seller who partswith securities on the 5th working day gets funds on the same day evening. This reducesthe funding cost of 5-6 for a broker (in case of institutional trades) that they have to bearin the physical segment. In the physical segment, the settlement period is spread over aperiod of three to four days. ♦ Faster disbursement of non cash corporate benefits like rights, bonus, etc. –NSDL provides for direct credit of non-cash corporate entitlements to an investorsaccount, thereby ensuring faster disbursement and avoiding risk of loss of certificates intransit. ♦ Reduction in rate of interest on loans grantedThis benefit is provided by some banks against pledge of dematerialized securities asdematerialized securities eliminates the following hassles/ risks: getting securitiesregistered in their name at the time of book closure and risk of stocks coming underobjections when they are send to the companys registrar for registration if the pledgeedefaults in repayment.  Increase in maximum limit of advances from Rs.10 lakhs to Rs.20 lakhs per borrower and reduction in minimum margin from 50% to 25% by banks for advances against dematerialized securities as per the Monetary and Credit Policy for the first half of 1998-99 announced by the Reserve Bank of India.  Reduction in brokerage of 0.25% to 0.5% by many brokers for trading in dematerialized securities - Brokers provide this benefit to investors as dealing in dematerialized securities reduces their back office cost of handling paper and also eliminates the risk of being the introducing broker.  Reduction in handling of huge volumes of paper 4
  5. 5. Projectsformba.blogspot.com  Periodic status reports to investors on their holdings and transactions, leading to better controls.You can open two types of e-share (depository) accounts • Individual Account • Corporate AccountIndividual Account:The following documents are required for opening an individual e-share account  Account opening set complete in all respects  Client-DP agreement on a (Rs. 20/- or Rs.50/-) non-judicial stamp paper  1passport size photograph of all applicants with signatures across the photographs.  PAN card for all holders  Proof of Identity & Proof of Address (Any one of the following)  Voters ID Card  Driving License  PassportCorporate Account:The following documents are required for opening a corporate account • Account opening set complete in all respects • Client-DP agreement on a (Rs. 20/- or Rs. 50/-) non-judicial stamp paper • 1 passport size photograph of all Authorized Signatories with signatures across the photograph • Introduction by an existing e-share client or bank managers attestation • Certified copy of Memorandum & Articles of Association • Board resolution signed by the Chairman/MD/CEO/CS/any person above the rank of the authorized signatories • PAN card of the Company and all the authorized signatories • Latest Bank Statement • List of Directors • Proof of Address of all the authorized signatories • Cancelled cheque leaf 5
  6. 6. Projectsformba.blogspot.comNRI Account:Repatriable/ Non-repatriable: • Completed Application form, duly signed by all applicants • Execute agreement on a (Rs. 20/- or Rs. 50/-) non-judicial stamp paper • 1 passport size photograph of all applicants with signatures across the photographs • PAN card for all holders • Proof of Identity & Proof of Address (Both local and foreign address) • RBI approval wherever applicable.KINDS OF ACCOUNTSJoint Account: In the event of the death of one of the Joint holders, the securities will betransmitted to the surviving holder(s). The surviving holder(s) will have to request us(vide a form called Transmission Form) to transmit (transfer) the securities lying in thejoint account to the e-share account of the surviving holder(s). For this purpose, thesurviving holder(s) can have an e-share account with the same DP or with different DP.They must submit the following documents to effect the transmission  Transmission form complete in all respects  Notarised copy of the death certificate  Client Master report of the surviving holder account, if it belongs to any other DPThe account of the surviving holder(s) must be in the same sequence as that of theaccount with the deceased. (For e.g. if the account holding pattern is in the name of Mr.A, B & C and Mr. B has died, the surviving holders must have an account with Mr. A asthe first holder and Mr. C as the second holder.)Sole Holder Account- with nomination: If the e-share account is held by a single holder and nominee has been registered,the shares will be transmitted to the nominee. The requisition will have to be submittedby the nominee along with the following documents:  Transmission form complete in all respects  Notarised copy of the death certificate  Affidavit & verification in the prescribed format 6
  7. 7. Projectsformba.blogspot.com  A duly stamped & signed Client Master report of the nominee account, if it belongs to any other DPSole Holder Account- without nomination: In case of death of the sole holder, the legal heir(s) or legal representative(s) ofthe deceased must request us to transmit the balances lying in the Client account of thedeceased to the account of the legal heir(s) or legal representative(s). For this, the legalheir (s) or the legal representative(s) of such securities must submit an instruction calledthe transmission form to us along with the following documents: • Original death certificate/ copy of the death certificate duly notarised • A copy of the Succession certificate duly notarised or an order of a court of competent jurisdiction where the deceased has not left a Will; or • A copy of the Probate or Letter of Administration duly notarised. However, if the legal heir(s) or the legal representative(s) express inability to produce either of the documents mentioned under (b) and (c) above, and the market value of the securities held in each account of the deceased as on the date of application for transmission does not exceed Rs.1lakh, then we will process the transmission request on the basis of the following documents:  Transmission form; (Annexure O)  Copy of the death certificate, duly notarised  Letter of Indemnity duly supported by a guarantee of an independent Surety acceptable to the DP, made on appropriate non judicial stamp paper;  An Affidavit & verification made on appropriate non judicial stamp paper and  No Objection Certificate(s) from all the legal heir(s) other than the deponent.Signed & stamped Client Master report of the deponent account, if it belongs to any otherDPOperational issues pertaining to depository operations:Specific issues with respect to opening and operating depository accounts are as givenbelow  In the depository system, with respect to the status of investments, the only difference is the form in which the securities are dealt. As it does not alter investment activities per se, there is no need for any special approvals to open or operate a depository account.  The account can be opened by the person or by his/her power of attorney holder provided the POA has the necessary authorizations 7
  8. 8. Projectsformba.blogspot.com  At the time of dematerializations of any securities into these accounts, the account holder should hand over to his DP, copies of RBI approvals obtained at the time of acquiring these securities. If these securities were acquired under a scheme which does not require special approval from RBI by the acquirer, then no approval letter is needed. (For e.g. when shares are issued to NRI in public issues, RBI gives a general approval to the issuing companies and the investor need not take any separate approval.)  When securities are to be debited from the account, the account holder should provide a copy of the relevant RBI approval for sale of securities to the DP.  When securities are to be credited to the account, the account holder should provide a copy of the relevant approval for purchase of securities to the DP.  If the same approval is applicable to multiple.Account Maintenance:To avail of the various services offered by NSDL an investor/ a broker/ an approvedintermediary (for lending & borrowing) has to open a NSDL depository account with anyof its DPs.Depository accounts are of three types: • Beneficiary account: An investor who wants to hold securities in dematerialised (demat) form and receive or deliver securities by inter-account transfers must have a depository account called beneficiary account with a DP of his choice. • Clearing member account: Member brokers of those stock exchanges which have established electronic connectivity with NSDL need to open a clearing member account, with a DP of his choice, to clear and settle trades in the demat form. This account is popularly known as Settlement account or "Pool account". This account is meant only to transfer securities to and receive securities from the clearing corporation/ house and hence, the member broker does not have any ownership (beneficiary) rights over the shares held in such an account. Further, clearing members of stock exchanges permitting Automatic Lending or Borrowing Mechanism (ALBM) transactions can request for a "clearing member ALBM" account to participate in ALBM transactions. These additional CM Accounts maintained for the purpose of ALBM transactions will have to be necessarily opened with the clearing house of the concerned stock exchange e.g. a BSE clearing members "normal clearing member account" could be with a DP 8
  9. 9. Projectsformba.blogspot.com XYZ, but his "clearing member ALBM" account will have to necessarily be with the clearing house of the BSE. • Intermediary account: Any person choosing to act as an approved intermediary for stock lending and borrowing needs to open an intermediary account with any DP of his choice. An intermediary account may be opened with the DP only after the intermediary has obtained registration from the Securities & Exchange Board of India and with the prior approval of NSDL. This account is meant only to deposit the securities received from the lender and lend them to the borrower under stock lending and borrowing scheme. The intermediary does not have any ownership (beneficiary) rights over the shares held in such an account.Dematerialization:Dematerialization is the process by which a client can get physical certificates convertedinto electronic balances.An investor intending to dematerialize its securities needs to have an account with a DP.The client has to deface and surrender the certificates registered in its name to the DP.After intimating NSDL electronically, the DP sends the securities to the concernedIssuer/ R&T agent. NSDL in turn informs the Issuer/ R&T agent electronically, usingNSDL Depository system, about the request for dematerialisation. If the Issuer/ R&Tagent finds the certificates in order, it registers NSDL as the holder of the securities (theinvestor will be the beneficial owner) and communicates to NSDL the confirmation ofrequest electronically. On receiving such confirmation, NSDL credits the securities in thedepository account of the Investor with the DP.Rematerialisation:Rematerialisation is the process by which a client can get his electronic holdingsconverted into physical certificates. The client has to submit the Rematerialisation requestto the DP with whom he has an account. The DP enters the request in its system, whichblocks the clients holdings to that extent automatically. The DP releases the request toNSDL and sends the request form to the Issuer/ R&T agent. The Issuer/ R&T agent thenprints the certificates dispatches the same to the client and simultaneously electronicallyconfirms the acceptance of the request to NSDL. Thereafter, the clients blocked balancesare debited. • A client can rematerialize his dematerialised holdings at any point of time. • The Rematerialisation process is completed within 30 days. • The securities sent for Rematerialisation cannot be traded.Market Transfers: 9
  10. 10. Projectsformba.blogspot.comTrading in dematerialised securities is quite similar to trading in physical securities. Themajor difference is that at the time of settlement, instead of delivery/receipt of securitiesin the physical form, the same is affected through account transfers.Delivery of securities to or from a clearing member are called "Market Trades" in thedepository system. A simple way of determining whether a trade is a market trade is that,either source or target in a transfer instrument is a CM account; such a transfer is a"Market Trade"Procedure in Case of Market Transfer for Retail Investors:In the diagram, the selling client and clearing member1 have their respective accountswith DP1 and the buying client and clearing member2 have their respective accounts withDP2. DP1, DP2 and the Clearing Corporation/ Clearing House have on line electronicconnectivity with NSDL. The following paragraphs, explain the flow of securities toeffect settlement of a market trade:Step-1: - Seller gives delivery instruction to DP1 to debit his account and transfersecurities to "Clearing Member1 Pool A/c" with DP1. [Clearing Member1 givescorresponding receipt instruction to DP1 to accept in his clearing account securitiestransferred by seller through DP1 if he has not already given standing receipt instructionfor all credits into his clearing account.]Step-2: - Securities are transferred from "Selling Client A/c" to "Clearing Member1 PoolA/c" with DP1.Step-3: - Clearing Member1 gives delivery to CC instruction to DP1 to debit his"Clearing Member1 Pool A/c" and credit his "Clearing Member1 Delivery A/c". The 10
  11. 11. Projectsformba.blogspot.comtransfer will take place on the "execution date" mentioned in the instruction. Delivery toCC instruction to be given as per final/ net delivery obligation.Step-4: - Securities lie in the "Clearing Member1 Delivery A/c" till settlement day. Atthe time of pay-in, securities lying in "Clearing Member1 Delivery A/c" are automaticallyflushed to the Clearing Corporation/ Clearing House. No debit instruction is needed forthis transfer. The deadline time for pay-in of securities to the Clearing Corporation/Clearing House may vary from one exchange to another.Step-5: - At the time of payout securities are transferred from the Clearing Corporation/Clearing House to "Clearing Member2 Receipt A/c" with DP2. No credit instruction isneeded because this transfer is automatic.Step-6: - Securities are transferred from "Clearing Member2 Receipt A/c" to "ClearingMember 2 Pool A/c". Receipt account of clearing members is purely a transit account formaintaining audit trail.Step-7: - Clearing Member2 gives a delivery instruction to DP2 to debit his "ClearingMember 2 Pool A/c" and credit "Buying Client A/c" with DP2. [Buyer givescorresponding receipt instruction to DP2 to accept in his account securities transferredfrom "Clearing Member2 Pool A/c" through DP2 unless he has not given a standinginstruction to receive credits to his account.]Note: - Funds are not handled by NSDL. Clearing Member2 obtains cheque from buyerand gives it to the Clearing Corporation/ Clearing House. Only after the cheque iscleared by clearing bank, the Clearing Corporation/ Clearing House allows credit ofsecurities to clearing member2 and thereafter, communicates the match to NSDL.Step-8: - Securities are transferred to "Buying Client A/c" from "Clearing Member2 PoolA/c" with DP2. Note: Until delivery instruction is given by the clearing member, thesecurities will remain in his "Pool A/c". However, if they are not transferred to a"Beneficial Owner A/c", the securities will not be eligible to any corporate benefits likebonus, dividends, etc.Off - Market Transfers:Trading in dematerialised securities is quite similar to trading in physical securities. Themajor difference is that at the time of settlement, instead of delivery/receipt of securitiesin the physical form, the same is affected through account transfers.Trades which are not settled through the Clearing Corporation/ Clearing House of anexchange are classified as "Off Market Trades". Delivery of securities to or from subbrokers, delivery for trade-for-trade transactions, by this definition are off-market trades. 11
  12. 12. Projectsformba.blogspot.comProcedure in case of an Off-Market Transfer Involving Two Clients:The selling client will have to give a delivery instruction to his DP to transfer securitiesfrom his depository account to the buying clients depository account. To receivesecurities from the selling clients depository account, the buying client must give areceipt instruction if he has not already given a standing receipt instruction to his DP.The details in the "delivery" and "receipt" instructions must match else the transfer willnot take place. The transfer will take place on the "execution date" indicated in theinstructions. If the buying client has given a standing receipt instruction, this may beignored.The payment aspect is handled outside the NSDL environment between the selling andbuying clients.Inter-Depository Transfers:Transfer of securities from an account in one depository to an account in anotherdepository is termed as an inter-depository transfer. This facility is quite similar to theaccount transfers within NSDL. • It can be done only for securities that are available for dematerialisation on both the depositories. • The account in NSDL can be either a clearing account or a beneficiary account. 12
  13. 13. Projectsformba.blogspot.com • For debiting the clearing account or the beneficial account with NSDL, the form for "Inter-depository delivery instruction" is required to be submitted by the clearing member/beneficial owner to its DP. • For crediting the clearing account or the beneficial account, the standing instruction given for automatically crediting the account is applicable. In case the standing instructions are not given, then the form for "Inter-Depository Receipt Instruction" is required to be submitted by the clearing member/beneficial owner to its DP. • As both the depositories are connected to each another, the batches to effect inter - depository transfers are presently exchanged on each working day. • Online transfer of inter depository instructions has commenced w.e.f December 14, 2002. In the online inter depository transfer (OLIDT) module, Inter Depository Transfer instructions for the day will be exchanged online between the two depositories. Thus, the instructions executed by DPs may get settled at shorter intervals. • The deadline time for DPs to verify & release Inter Depository Transfer delivery/ receipt instructions is 6 p.m. on weekdays and 2.30 p.m. on Saturdays. • The Issuer/Registrar & Transfer Agent is informed about the transfer by both the depositories and it amends its records accordingly. • Government securities cannot be transferred from one depository to another using this facility.Pledge: Securities held in a depository account can be pledged/hypothecated to avail ofloan/credit facility. Pledge of securities in NSDL depository requires that both theborrower (Pledgor) and the lender (pledgee) should have account in NSDL depository.Corporate Actions:Corporate actions are benefits given by a company to its investors. These may be eithermonetary benefits like dividend, interest or non-monetary benefits like bonus, rights, etc.NSDL facilitates distribution of corporate benefits.Monetary benefits (dividends etc):NSDL will give the beneficiary ownership details to the Issuer/R & T Agent. The Issuer/R & T Agent will carry out the necessary processing and the distribution of such benefitswill be outside the system.Non-monetary benefits (rights bonus etc):NSDL will give the beneficiary ownership details to the Issuer/ R & T Agent. The Issuer/R & T Agent will carry out the necessary processing and upload the beneficiaryownership details to NSDL. NSDL will then credit the beneficiary owners accounts bydownloading the data to the DPs. 13
  14. 14. Projectsformba.blogspot.comSpecial services offered by DPs with respect to these accounts are asfollows:Standing Instruction Facility:DP enters the advise for the transfer of securities to or from a beneficial owners accountonly on receipt of instructions from the client. The clients need to give deliveryinstruction to transfer securities from their account & receipt instruction to get credit intotheir account. However, for ease of operation, a facility of standing instruction isprovided to the clients for receiving securities to the credit of their accounts without anyfurther instruction from them.Change in Address:The client can change his address by submitting the changes in writing to the DP alongwith proof of identity, proof of new address with original document of new address forverification and latest transaction statement received from the DP of the client. Thechanges conveyed to the DP will be automatically communicated to the companies inwhich he is holding shares in dematerialized form.Bank Account Details:Details of bank account of the client, including the 9-digit code number of the bank andbranch appearing on the MICR cheque issued by the bank have to given to the DP at thetime of account opening. Companies use this information for printing them ondividend/interest warrants preventing its misuse. In case the client wishes to change thisbank account details, he can do so by submitting the changes in writing to the DP.Nomination:A client can make a nomination of his account in favour of any person by filing thenomination form with his DP. Such nomination is considered to be conclusive evidenceof the account holder(s) disposition in respect of all the securities in the account forwhich the nomination is made.Transposition cum Demat:This is a facility whereby securities held jointly can be dematerialized in an account ofsame joint holders but having different sequence of names. e.g. securities held in jointnames of X and Y can also be dematerialised in an account opened in the names of Y andX by submitting an additional form called Transposition Form along withDematerialization Request Form (DRF) to the DP. 14
  15. 15. Projectsformba.blogspot.comConsolidation of Accounts:Some clients could have opened multiple accounts to dematerialize their shares held inmultiple combinations & sequence of names. However, they may not need so manyaccounts after they have dematerialised their securities and may want to bring all theirshareholdings into one or fewer accounts. Using off-market account transfer instructionsuch consolidation can be done.Closure of Account:A client can close a depository account by giving an application in the prescribed form.In case there is any balance in the account sought to be closed, the following steps arenecessary.(a) Re-materialization of all securities standing to the credit of the account at the time ofmaking the application for closure; or(b) Transferring the balance to the credit of another account opened by the same accountholder(s) either with the same participant or with a different participant.Freezing of Accounts:Account freezing means suspending any further transaction from the depository accounttill the account is de-frozen. A depository account maintained with a DP can be frozen ifthe DP receives a written instruction in prescribed form from the client. A frozen accountcan be de-frozen or re-activated if the client submits written instruction in prescribedform to the DP. 15
  16. 16. Projectsformba.blogspot.com INDUSTRY PROFILEAbout NSDL Although India had a vibrant capital market, which is more than a century old, thepaper-based settlement of trades caused substantial problems like bad delivery anddelayed transfer of title till recently. The enactment of Depositories Act in August 1996paved the way for establishment of NSDL, the first depository in India. This depositorypromoted by institutions of national stature responsible for economic development of thecountry has since established a national infrastructure of international standards thathandles most of the securities held and settled in dematerialized form in the Indian capitalmarket. Using innovative and flexible technology systems, NSDL works to support theinvestors and brokers in the capital market of the country. NSDL aims at ensuring thesafety and soundness of Indian marketplaces by developing settlement solutions thatincrease efficiency, minimize risk and reduce costs. At NSDL, we play a quiet but centralrole in developing products and services that will continue to nurture the growing needsof the financial services industry. In the depository system, securities are held in depository accounts, which is moreor less similar to holding funds in bank accounts. Transfer of ownership of securities isdone through simple account transfers. This method does away with all the risks andhassles normally associated with paperwork. Consequently, the cost of transacting in adepository environment is considerably lower as compared to transacting in certificates.Promoters Shareholders NSDL is promoted by Industrial Development Bank of India Limited (IDBI) - thelargest development bank of India, Unit Trust of India (UTI) - the largest mutual fund inIndia and National Stock Exchange of India Limited (NSE) - the largest stock exchangein India. Some of the prominent banks in the country have taken a stake in NSDL.Promoters • Industrial Development Bank of India Limited • Unit Trust of India • National Stock Exchange of India LimitedOther Shareholders • State Bank of India • Oriental Bank of Commerce • Citibank NA 16
  17. 17. Projectsformba.blogspot.com • Standard Chartered Bank • HDFC Bank Limited • The Hongkong and Shanghai Banking Corporation Limited • Deutsche Bank • Dena Bank • Canara Bank • Union Bank of IndiaLegal Framework As a part of its on-going market reforms, the Government of India promulgatedthe Depositories Ordinance in September 1995. Based on this ordinance, Securities andExchange Board of India (SEBI) notified its Depositories and Participants Regulations inMay 1996. The enactment of the Depositories Act the following August paved the wayfor the launch of National Securities Depository Ltd. (NSDL) in November 1996. TheDepositories Act has provided dematerialisation route to book entry based transfer ofsecurities and settlement of securities trade. In exercise of the rights conferred by the Depositories Act, NSDL framed itsByelaws and Business Rules. The Byelaws are approved by SEBI. While the Byelawsdefine the scope of the functioning of NSDL and its business partners; the Business Rulesoutline the operational procedures to be followed by NSDL and its "Business Partners."Depository System - Business Partners NSDL carries out its activities through various functionaries called "BusinessPartners" who include Depository Participants (DPs), Issuing companies and theirRegistrars and Share Transfer Agents, Clearing corporations/ Clearing Houses of StockExchanges. NSDL is electronically linked to each of these business partners via a satellitelink through Very Small Aperture Terminals (VSATs) or through Leased landlines. Theentire integrated system (including the electronic links and the software at NSDL andeach business partners end) is called the "NEST" [National Electronic Settlement &Transfer] system. 17
  18. 18. Projectsformba.blogspot.com 18
  19. 19. Projectsformba.blogspot.comIssuing Companies/ their Registrar & Transfer Agents: Securities issued by issuers who have entered into an agreement with NSDL canbe dematerialised in the NSDL depository. As per this agreement, issuer agrees to verifythe certificates submitted for dematerialisation before they are dematerialised and tomaintain electronic connectivity with NSDL. Electronic connectivity facilitatesdematerialisation, Rematerialisation, daily reconciliation and corporate actions,.Clearing Corporation / House: The clearing corporations/houses of stock exchanges also have to beelectronically linked to the depository in order to facilitate the settlement of the tradesdone on the stock exchanges for dematerialised shares. At present, all the major clearingcorporations/houses of stock exchanges are electronically connected to NSDL.The following stock exchanges have linked up with NSDL to facilitate trading andsettlement of dematerialised securities: • Madras Stock Exchange Ltd. (MSE) • National Stock Exchange of India Ltd. (NSE) • Inter-connected Stock Exchange of India Ltd. (ISE) • OTC Exchange of India (OTCEI) • The Calcutta Stock Exchange Association Ltd. (CSE) • The Delhi Stock Exchange Association Ltd. (DSE) • The Stock Exchange, Mumbai (BSE) • The Stock Exchange, Ahmedabad (ASE) 19
  20. 20. Projectsformba.blogspot.com NSDL Facts & Figures As on December 31, 2007 Number of certificates eliminated (Approx.) 467 Crore Number of companies in which more than 75% shares are dematted 1914 Average number of accounts opened per day since November 1996 3371 Presence of demat account holders in the country 74% of all pincodes in the countryThe model for Dematerialization of NSDL INVESTOR DEPOSITORY NSDL PARTICIPANT REGISTER(a) Investor surrender certificates for dematerialization to depositary participant.(b) Depositary participant intimates NSDL of the request through the system.(c) Depositary participant’s submits the certificate to the registers.(d) Registrar confirms the dematerialization request from NSDL.(e) NSDL up dates its account of informs the depositary participant.(f) Depositary participant up dates its accounts and inform the investor.The entire process of dematerialization may take about 15 days. 20
  21. 21. Projectsformba.blogspot.comAn Investor makes a dematerialization request, along with the investor physicalCertificates of securities, to the issuer or its registrar through a depositary participant.After prescribed verification and confirmation, their registrar substitutes in its recordsNSDL as registered owner in respect of the securities and inform NSDL accordingly.NSDL then enters the name of the investor as the beneficial owner of the securities,credits the investor’s account, and informs the investor’s depositary participantaccordingly.Need and Objectives for a Depositary in IndiaThe present system of settlement based on physical delivery of paper certificateswas probably adequate in the past when there was small number of investors participatingin the transaction of the capital market.Increasing market and operational inefficiencies features the old system of stockTrading and settlement. This section of the market comprised the secondary market,which is popularly called as the ‘stock market’, comprising 23 recognized stockexchanges and is the organized market regulated by the Securities and Exchange Boardof India (SEBI) for purchase and sale of securities through, intermediaries called stock-brokers and Sub Brokers. The old trading system is affected(A) Unwarranted delay in transfer of shares,(B) Duplicate / fake forged shares,(C) Court injunction cases,(D) Bad deliveries(E) Loss in transits/ theft/mutilation,(G) Disputes or corporate actions,(H) Huge transaction cost,(I) Longer settlement cycles.(J) Poor infrastructure, large paper volume.All these factors serve as barriers to entry of an investors in to the market. Thisfailure gave the idea of setting up of an electronic system with scrip less trading andquick settlements cycle.The main depository players area) Depositary (new NSDL and CDSL)b) Issuer companies/Registrars of transfer agent (RTA)c) Depositary participantd) Investors 21
  22. 22. Projectsformba.blogspot.come) Brokers (clearing members (CM) COMPANY PROFILEABOUT INTEGRATED ENTERPRISES (INDIA) LIMITED With our 34 years expertise in investments consulting, we provide you the bestinvestment solutions that are suitable to reach your financial goals successfully. Ourgamut of investment solutions include fixed deposits, post office schemes, bonds andmutual funds. We ascertain your risk profile and guide you with the right mix of variousproducts, which effectively reduces your tax liability, increases your savings andultimately enhances your wealth. We take care of your complete investment process -from identifying the best investment avenue to restructuring your portfolio on a regularbasis. Whether you have a conservative, balanced or aggressive investment risk appetite,our experts will guide you to build a portfolio to optimize the return on investments. With service excellence always at the fore, Integrated Enterprises is one of Indiasmarket-leading financial solutions providers serving over 6 lac investor families. Wecommenced operations in 1974, when there were very few companies to offer the 22
  23. 23. Projectsformba.blogspot.comservices that we covered. Now, with a strong presence of 112 branches all over thecountry and a comprehensive suite of products and services, we take care of the needs ofthe investor community as a whole. Our services include distribution of financial products - Mutual Funds, IPO’s,Fixed Deposits, Bonds, Insurance and Post office Schemes. Integrated also providesDemat services and has built a strong customer base of more than 2 lakhs Demat accountholders. Our processing services include PAN, TAN applications, e-TDS returns. Weundertake merchant banking activities and also act as share transfer agent and registrar toan issue. Our core competence lies in reaching out to all prospective investors andsatisfying their financial needs by providing them with the best product that suits them.We achieve this with the help of well-experienced manpower with vast domainknowledge and varied skill sets. Integrated Enterprises provide innovative and tailored solutions to all financialneeds of its customers.VISION A fully diversified financial services company providing quality service tocorporates and retail investors with absolute integrityMOTTO “Building relationship with absolute integrity”VALUES Integrated has grown over the last decades based on a foundation of core valuesand vision. This has been our vantage point in building a strong customer relationshipand reaching new heights in the future.a) Integrity We are trustworthy of customers and provide high quality services to their utmostsatisfaction. We follow an honest and ethical approach in all our dealings with thecustomers 23
  24. 24. Projectsformba.blogspot.comb) Commitment We have a strong commitment to serve our customers. We understand individualcustomer needs and make them choose the right product that suits them.c) Workforce Our people are our greatest strengths. We have a well-managed workforce whohave domain knowledge and are expertise in their field of operationd) Customer focus We are driven by our customers. We provide them with outstanding service bycatering to all their financial needs under one roof. We continuously strive to understandand exceed customer expectations and ensure long-term satisfactione) Teamwork Our efforts are based on teamwork and collaboration. We create a work culturethat is conducive to innovative ideas and thoughts. We achieve our goals throughefficient teamwork, partnership and joint effort. We work towards a unified approach inproviding financial solutions to all investors.MILESTONES1974 - Integrated begins operations Investors start investing in companies through us Accepts company deposits, post office schemes and bonds1984 - Expansion of Integrated Branch Network across the country1993 - Starts offering Merchant Banking services. Approved by SEBI as Category 1 Merchant Banker1994 - Starts acting as Share Transfer Agent approved by SEBI as Category I RTI/STA1998 - Diversified its activities as a Depository Participant offering Demat services to its Customers2004 - Integrated expands its product range to include tax related services such as PAN, TAN and e-TDS filing 24
  25. 25. Projectsformba.blogspot.com2005 - Adds E-Return filing to its array of services2006 - Opens its 100th branch. Entry into Share Broking Services through its subsidiary company Integrated becomes a one-stop shop offering wide range of financial services Personalized Financial Planning to Retail InvestorsCREDENTIALS • 34 years of experience as Total Financial Solutions Provider • Wide spectrum of products and services to cater to the diversified needs of investors • Serving over 6 lakhs investor families • Investors have the facility of choosing all services under one roof • Wide network of 112 branches across the country • State-of-the-Art infrastructure is being used to provide effective service to the clients • Highly competent workforce with professional knowledge and expertise • Largest Depository Participant in India with a strong customer base of more than 2 lakhs Demat account holders • More than 20 lakhs PAN applications have been made through us • Category 1 Merchant Banker approved by SEBI • Category 1 Registrar & STA approved by SEBI with more than 200 major client.SERVICES DONE BY IEP 25
  26. 26. Projectsformba.blogspot.comInvestments: Marketing corporate fixed deposits, debenturesDemat services: Opening depository accounts, DematShare broking services: Facilitating buying and selling of securities through NSEInsurance: Marketing life, health and general insurance schemesCorporate services: Merchant banking, registrar to an issueTax related services: Processing of PAN, TAN, and e- TCS MANAGEMENTSHRI. P. VAIDYANATHANChairman He is the Chairman and founder of the Company. He is the architect of thecompanys growth and success. He has been a driving force for the Company to reachgreat heights. He has more than 35 years experience in Financial Services Industry. Hisinnovative ideas and envisioned future have fetched best results to the organization. Inview of his experience and expertise in the field of Finance, he is in the Board of CityUnion Bank, Franklin Templeton Asset Management Company, Hatsun Agro Productsand a member of executive committee of National Securities Depository Limited(NSDL). He is a Chartered Accountant, Cost Accountant and a Company Secretary byqualification.SHRI. S. BALASUBRAMANIANDirector & Chief Operating Officer He is the Chief Operating Officer and Director of the Company. He has more than15 years of experience with a Private Sector Bank and has been with the Company for 26
  27. 27. Projectsformba.blogspot.commore than 10 years holding various positions. In view of his dynamic leadership anddecision-making skills, he has been inducted in the Board. He is a qualified CharteredAccountant and a Cost Accountant. He is also technically qualified with CAIIB.SHRI. M. JAYARAMANWhole Time Director He is heading the IT Division of the Company. He has been associated with theCompany for more than 12 years. He has contributed materially towards the Networkingof the Branches through Internet and processing of applications on a real-time basis. Hehas given his valuable inputs in designing the MIS of the Company. He is basically anEngineer with 22 years of experience.TOP MANAGEMENT TEAMShri. S. Balasubramanian - Chief Operating Officer & Whole Time DirectorShri. M. Jayaraman - Whole Time Director, In charge of e-TDS DivisionMr. V. Krishnan - Vice President, In charge of North & West India OperationsMr. S. Narayanan - Asst. Vice President, MarketingMr. R. Murali - Asst. Vice President, Systems & OperationsMr. S. Vasudevan - Asst. Vice President, e-TDS DivisionMr. K. Arun - General Manager, Marketing 27
  28. 28. Projectsformba.blogspot.comMr. K.T. Vinod Kumar - General Manager, Demat DivisionMr. K. Suresh Babu - General Manager, Registry DivisionMr. R. Sivakumar - General Manager, SystemsMr. N. Ramesh - Senior Executive, Share Broking DivisionMr. K. Gurumurthy - Senior Executive, HR STATEMENT OF THE PROBLEMS There are many investors who have their shares in physical format (i.e.) nearly 25% ofthe investors are holding their shares in physical format.t So to make them understand the necessity of making those Physical shares (i.e.) paperformat shares into Demat form. Where they can avoid the problem of carrying thosepaper form shares with them while they go out for trade.p This also helps the investors to keep them aware of the fraudulent forms that run in themarket. In case if they have the Demat form they need not want to worry about theduplicate paper forms prevail in the market.d Here, with the help of the DP’s they can get the information of those scrips, which arein their Demat, account.i Here this, will also simplify their trading process. By the help of having the Demataccount they get the shares or value of the shares within 2-4 days.a It was studied that, from 1996 till 31/December/2007 there where 74% of the investorshold their shares in Demat account. 28
  29. 29. Projectsformba.blogspot.comP And in 1914 companies more than 75% of the investors are holding their shares inDemat account. (Till: 31-12-2007).D Till 31-12-2007, the number of Demat accounts opened per day are 337 with variousDP’s.D Given the volume of Demat Operation, the researcher is interested in making a Dematstudy with regard to Integrated Enterprises (India) Ltd (i.e.) Why many of the Investorsopen Demat account with Integrated Enterprises (India) Ltd. OBJECTIVES# To study the profile of capital market investors.# To study the securities held under Demat System.# To study the profile of Relationship account.# To study the trading pattern through Demat. 29
  30. 30. Projectsformba.blogspot.com SCOPE OF THE STUDY # The first scope is to know, what kind of age group investors are they. And also toknow their exposure to market.# The next scope is to know the securities of which kind they go for. And what kind ofsectors they mainly prefer to invest.# The next scope is related with the company (i.e.) in which scheme the investors haveopened is Demat account, and maintaining his shares. In case of Integrated there are fourschemes, which have their own benefits.# The next scope of the study is to know, how the investors trade. And what kind ofpattern and volume they trade. 30
  31. 31. Projectsformba.blogspot.com RESEARCH METHODOLOGYResearch design:Research design can be thought of as the structure of research -- it is the "glue" that holdsall of the elements in a research project together. We often describe a design using aconcise notation that enables us to summarize a complex design structure efficiently.Analysis:By the time you get to the analysis of your data, most of the really difficult work has beendone. Its much more difficult to: define the research problem; develop and implement asampling plan; conceptualize, operationally and test your measures; and develop a designstructure. If you have done this work well, the analysis of the data is usually a fairlystraightforward affair.Descriptive Statistics are used to describe the basic features of the data in a study. Theyprovide simple summaries about the sample and the measures. Together with simplegraphics analysis, they form the basis of virtually every quantitative analysis of data.With descriptive statistics you are simply describing what is, what the data shows.O Here descriptive Analysis is used, since the clients are walk-in clients.O These clients are who come to trade (buy& sell) shares.O Data collected are primary data. 31
  32. 32. Projectsformba.blogspot.comSampling:Convenience Sampling is used for data collection.Research tool:A well-structured Questionnaire is used for collecting data from clients.This Questionnaire is prepared on the basis of the objectives of the case. CHAPTER- 4 ANALYSIS AND INTERPRETATION  To study the profile of Capital Market investors4.1 PERCENTAGE ANALYSIS; Table 4.1.1 Classification of Respondents based on Gender Male Female Total Total 49 26 75 Percentage 65.33333 34.66667 100Interpretation: 32
  33. 33. Projectsformba.blogspot.com Here Sample size taken is 75. Out of 75, 49 are Male (65.33%)and 26 are Female (34.67%). And this clearly shows that Males are dominating to invest inshares and take risks. Whereas Females are not taking risk by investing inshares rather they go for safety investment (i.e.) Mutual Funds where it is aindirect investment in shares and risks involved also less. Figure 4.1.1 Classification of Respondents based on Gender 33
  34. 34. Projectsformba.blogspot.com 60 50 40 Male Population 30 Female 20 10 0 1 Male&Female Table 4.1.2 Classification of Respondents based on Age Percentage Gender/Age Male Female Total (%) <25 1 0 1 1.333333 25-35 9 0 9 12 34
  35. 35. Projectsformba.blogspot.com 35-45 12 20 32 42.66667 45-55 19 6 25 33.33333 >55 8 0 8 10.66667 Total 49 26 75 100 Percent 65.33333 34.66667 100Interpretation: In case of age most of the investors are from the age group 35-45.There are totally 32 investors falling under this category at 42.67%. Where Males are 12and Females are 20. Here, Females dominate because, Males of this age belongs toworking category and are busy earning people. So on behalf of them they approve theirwife’s to trade (or) open the account in their wife’s name and by call they trade.These 35-45 age groups dominate because they like to take more risk and earn morereturns since this peer group is the working group. Then, followed by 45-55 age group investors. There are totally 25 investorsfalling under this category at 33.33%. Where Males are 19 and Females are 6.Here they are standing at next stage door (where they are nearing their retiring stage). Sothey like to take the advantage of earning more profit for their future and be safe. In case of other groups they are Safety considering people .So only few ofthose groups invest in shares. Figure 4.1.2 Splitting of Population Age wise Classification of Respondents based on Age 25 20 Population 15 Male 10 Female 5 0 <25 25-35 35-45 35 45-55 >55 Age
  36. 36. Projectsformba.blogspot.com Table 4.1.3 Classification of Respondents based on their Profession Gender/Occupation Male Female Total Percentage Bank 2 0 2 2.66666667 Business 6 0 6 8 Engineer/Tech 9 0 9 12 Government staff 1 3 4 5.33333333 House Wife 0 15 15 20 36
  37. 37. Projectsformba.blogspot.com Retired 10 2 12 16 Service 17 5 22 29.3333333 Teacher 2 1 3 4 Others 2 0 2 2.66666667 Total 49 26 75 100 Percentage 65.33333 34.66667 100Interpretation: Here, most of the investors belong to Service category. They are 22 innumber. Here, they go for investing because they want to diversify their capital and to getreturns out of that. Then, followed by House Wife’s because they go as per the information oftheir Husband’s who want their belonging’s to trade. They are nearly 15 in number. Then, it is the Retired group who play this, as they have capital with themto invest and they also get the enough capital from their children. So they take risk andinvest to make more profit out of that. Other occupation persons are very less since they are busy and they are ofidea, that they don’t wish to take risk. Figure 4.1.3 Classification of Respondents based on their Profession 37
  38. 38. Projectsformba.blogspot.com 120 100 80 Male Female 60 40 20 0 se ff Te ce ge R e rc tal Bu ank s Se d en h O r G ine ess he a if er ire nm ec H t st W i Pe To ta rv th ac B et n er r/T en si e ou g En ov Table 4.1.4 Classification of Respondents based on their Exposure 38
  39. 39. Projectsformba.blogspot.com Gender/Expose Male Female Total Percentage Advertisement 7 0 7 9.3333333 Friends 21 10 31 41.333333 Relatives 11 12 23 30.666667 Others 10 4 14 18.666667 Total 49 26 75 100 Percentage 65.33333 34.66667 100Interpretation: Here, most of the investors are exposed to the market by their Friends(31). This is because they are those who work with them and who live nearby of them.And they have the experience and knowledge in the market. Then, followed by the Relatives (23) who are the well wishers of them.And they need them to follow the market. Then, it is Others and Advertisement’s which make them less expose tothe market. Because, in case of Others very few has the idea of Stock Market and theyinvest on their own interest. Whereas in case of Advertisement no one will go forinvesting and take the risk. Figure 4.1.4 Classification of Respondents based on their Exposure 39
  40. 40. Projectsformba.blogspot.com Exposure to Stock Market 25 20 Population 15 Series1 10 Series2 5 0 0 1 2 3 4 5 Guides  To study the securities held under Demat System Table 4.1.5 Classification of Respondents based on the Securities held by them 40
  41. 41. Projectsformba.blogspot.com Blue Chip Ordinary Both Total Percentage Male 9 14 26 49 65.333333 Female 8 6 12 26 34.666667 Total 17 20 38 75 100 Percentage 22.66667 26.66667 50.66667 100Interpretation: Here, 38 of the investors hold Both Blue chip & Ordinary Securities intheir DEMAT System because they want to diversify their capital in all sectors so thatthey can get return of all kind.Then, followed by the investors who hold the Ordinary securities is 20.They feel that, by going for the Ordinary one’s they can get normal profit and if there isloss also it will be less while comparing to Blue chips.Next, followed by 17 investors who go for the Blue Chip. Because they make more profitthen Ordinary ones. Figure 4.1.5 Classification of Respondents based on the Securities held by them 41
  42. 42. Projectsformba.blogspot.com Kind of Securities 30 25 20 Male Female 15 10 5 0 Blue Chip Ordinary Both Table 4.1.6 Classification of Respondents based on different Scrips held in Demat Sectors Population Percentage IT/Tele/Comm. 23 16 42
  43. 43. Projectsformba.blogspot.com Agro/Farm/Fer 6 4.17 Pharmacy 1 0.69 Realties 3 2.08 Infrastructure 21 14.59 Power 12 8.33 Textile 4 2.78 Banking 20 13.89 Oil Petroleum 3 2.08 Cement 8 5.56 Industrial 4 2.78 Resource 1 0.69 Media 1 0.69 Mixture 37 25.69Interpretation: Here, Most of the investors belong to Diversification/Mixture (37/75).This is because, they can split (or) diversify their capital in different sectors, so that theycan gain more profit. Next, followed by IT/Telecom/Communication (23/75). Because it was a boomingsector, So all go for this.Then, it is Infrastructure (21/75) investors go for this sector, because everyone thinks it isa developing sector. Figure 4.1.6 Classification of Respondents based on different Scrips held in Demat 43
  44. 44. Projectsformba.blogspot.com Population 40 35 30 25 20 Population 15 10 5 0 ia le ma l m re ria m ed xti om tu leu st ar Te M uc du Ph /C tro str In ele Pe fra /T l& In IT Oi Sectors  To study the profile of Relationship account Table 4.1.7 Classification of Respondents based on the Schemes 44
  45. 45. Projectsformba.blogspot.com Gen/Schemes Male Female Total Percentage RS.1000 14 9 23 30.666667 RS.4000 19 9 28 37.333333 RS.5000 5 5 10 13.333333 RS.10000 11 3 14 18.666667 Total 49 26 75 100 Percentage 65.33333 34.66667 100Interpretation: Here, 28 of the investors have opened their DEMAT a/c under Rs.4000scheme. Because the amount is repaid after deducting the monthly maintenance whenthey are closing their a/c. And other charges are also less.Then followed by the Rs.1000 scheme, where 23 have opened their a/c.Here mainly those who trade rarely open their a/c. And they can give cheque for extraamount so that they can maintain their 1000 balance. And at the time of closing they canget that the amount back. The only difference between this scheme and 4000 scheme ishere, the charges are little higher. But while comparing to other DP’s it is less. Then it is Rs.10000 scheme, 14 have opened their a/c. Here, they are mainly Intradayplayers. And they are execution of all charges.Then, it is Rs.5000 Scheme (2 in one scheme), 10 have opened their a/c. Here they can doIntraday also. And the charges will be as 4000 scheme Figure 4.1.7 Classification of Respondents based on the Schemes 45
  46. 46. Projectsformba.blogspot.com Scheme 20 18 16 14 12 Male 10 Female 8 6 4 2 0 RS.1000 RS.4000 RS.5000 RS.10000  To study the Trading pattern through Demat Table 4.1.8 Classification of Respondents based on the usage of demat account 46
  47. 47. Projectsformba.blogspot.com Male Female Total Percentage Daily User 11 3 14 18.666667 Weekly 22 10 32 42.666667 Fortnightly 12 11 23 30.666667 Any Other 4 2 6 8 Total 49 26 75 100 Percentage 65.33333 34.66667 100Interpretation: Here, 32 of the investors use weekly. Because they are mainly the deliveryplayers.Next, followed by the fortnightly users. Where they are 23 players in my study who usefortnightly. They are the working category people.Next, 14 of them are Daily users. They are mostly Intraday players.Then, only it is any other, where 6 are there. Hey are mainly the Long term players. Figure 4.1.8 Classification of Respondents based on the usage of demat account 47
  48. 48. Projectsformba.blogspot.com Users 25 20 15 Male 10 Female 5 0 Daily User Weekly Fortnightly Any Other Table 4.1.9 Classification of Respondents based on their Trading Account 48
  49. 49. Projectsformba.blogspot.com Male Female Total Percentage With CUB 44 22 66 88 With Others 5 4 9 12 Total 49 26 75 100 Percentage 65.33333 34.66667 100Interpretation: Here, most of the investors who use their Demat a/c in IEP, have theirTrading a/c with CUB Share Broking, which is the Subsidiary of IEP. And this is alsoinside the IEP itself. Where they don’t want to go to trade with others. And they canreduce their job. Figure 4.1.9 Classification of Respondents based on their Trading Account 49
  50. 50. Projectsformba.blogspot.com Having Trading a/c 50 45 40 35 30 With CUB 25 With Others 20 15 10 5 0 Male Female Table 4.1.10 Classification of Respondents based on holding Scrips Investors Percentage 50
  51. 51. Projectsformba.blogspot.com <25 49 65.333333 25-50 18 24 50-75 3 4 75-100 1 1.3333333 >100 4 5.3333333 Total 75 100 Percentage 100Interpretation: Here, Most of the investors hold <25 Scrips (49) in their Demat a/c.Because they don’t want to take more risk by investing in more Scrips. And some aremainly the Intraday players who buy& sell on spot itself. So, they always hold very lessonly. And the others will be who do delivery and some may get shares from theircompany itself when the company issues. Figure 4.1.10 Classification of Respondents based on holding Scrips 51
  52. 52. Projectsformba.blogspot.com Investors <25 25-50 50-75 75-100 >100 Table 4.1.11 Classification of Respondents based on their trading pattern Male Female Total Percentage 52
  53. 53. Projectsformba.blogspot.com Intraday 12 5 17 22.666667 Delivery 27 19 46 61.333333 Long 6 2 8 10.666667 Short 0 0 0 0 All The above 4 0 4 5.3333333 Total 49 26 75 100Interpretation: Here, most of them are delivery players. Totally 46 investors are deliveryplayers. Here, think and do business. They buy whey the market is in negative and sellwhen the market is at the peak.Next, it is Intraday players 17. These players are retired and house wives. They take morerisk. This is that, they buy at morning and sell at evening or afternoon. Even it goes inloss they sell it out. Figure 4.1.11 Classification of Respondents based on their trading pattern 53
  54. 54. Projectsformba.blogspot.com Players 30 25 20 15 Male 10 Female 5 0 -5 0 1 2 3 4 5 6 InvestorsTo know the Volume the investor’s trade:# If we see the Intraday player’s trade in 100’s. Because they buy and sell them in theevening itself. And these players will hold only less volume of shares in their Scrips & inDemat a/c. They may also trade with other broker’s and have Demat a/c. But there theycan make only delivery. 54
  55. 55. Projectsformba.blogspot.com# In case of delivery they trade once in a while. So, they trade up to 500’ s-1000.# In case of Long it also like Delivery, where they after one year sell (i.e.) if they buytoday they may sell after 12 months, and at that time they will sell at large volume.# In case of Short term, here no one are trading. Here the tax involved has been increasedfrom 10% - 15%, at the time of budget. So most of them stopped trading in short term. Itis <1 year.# In case of combination they are as per the investor’s wish. CONTENT ANALYSISIn Case of Suggestions and Facilities:(1) Most of the investor’s are asking for one more thermal, so that they can sitand give order. 55
  56. 56. Projectsformba.blogspot.com(2) Most are feeling bad of power facility here. Since there is a power shut downand there is no good backup for them. And all ask for Generators so that theycan trade even when power goes of.(3) Some say the service is good and some say still it has to de improved.(4) Some ask for good customer service. FINDINGS The middle-aged group people come to invest in shares at Integrated. All those invest are the persons in Service 56
  57. 57. Projectsformba.blogspot.com Most of the investors are exposed to stock market through friends. Most of the investors choose to invest in both Blue Chip and Ordinary Shares. Most of the investors go for the Mixture of Scrips Investors selectedly go to Rs.4000 Scheme Investors Mainly go for Using Demat a/c Weekly. Investors are mainly belonging to CUB Share Broking. Investors go for safe trading mainly (i.e.) they go for Delivery.Suggestions: The investors greater than 55-aged group must be focused mainly. Advertisement must be given more priority to attract the investors, which is less in caseof Integrated. 57
  58. 58. Projectsformba.blogspot.com Investors must be given awareness of others Schemes, So that they can know theadvantage of other schemes to invest. Most of the investors are feeling Uncomfortable while Opening Demat account withIEP, Because of more process involved and strict rules. 58

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