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ROLL NO: 2281-14-672-077


(Affiliated to OSMANIA University)
2014 -2016


I hereby declare that this project report titled “DEMAT ACCOUNT” at ANGEL
BROKING submitted by me to the department of business management, O.U,
Hyderabad, is a bonafide work under taken by me and it is not submitted to any other
university or institution for the award of any degree diploma/certificate or published any
time before.

Name and Address of the Student
Mr. Mir Ashraf Ali
Roll No: 2281-14-672-077

Signature of the student

ACKNOWLEDGEMENT I take this opportunity to extend my profound thanks and deep sense of gratitude to the ANGEL BROKING for giving me an opportunity to undertake this project work in their esteemed organization.M. My sincere thanks to Principal. . DR. ALGI PHEBE NISSI. I extend my profuse to my parents and friends for encouraging and supporting in every part of my career.PRAKASH and my project guide MS. for the kind encouragement and constant support extended in completion of this project work.

Since then. A Demat Accounts a trust that pools the savings of a number of investors who share a common financial Goal. Public Sector Banks and Financial Institutions began to establish Demat Account in 1987. The Project has been conducted in limited geographical area in Hyderabad.ABSTRACT In India demat account started with the setting up of UTI in 1964. To understand the performance and benefits of .10.000 Crores.To conduct a Market study & find the fund preference and awareness of full schemes of AMC & dividend option opted. In collection of data from the investors. This fast growing industry is regulated by the SEBI. there are over 29 Demat Account and over 300 Schemes with total assets of approximately Rs. the history of Demat Account in India can be broadly divided into four distinct phases. Today. This Study has been conducted within specific and limited time period. personal bias may be present. at the initiative of the Government of India and Reserve Bank . financial planning services and ensuring that Demat Account . The Demat Account in India started in 1963 with the formation of Unit Trust of India.The objective then is to attract the small investors and introduce them to market investments. The Demat Account has to now take the more difficult but long-term sustainable route of gathering assets from individual investors by providing them value added. These could range from shares to debentures to money market instruments. . The Private Sector and Foreign Institutions were allowed to set up Demat Account in 1993. The money thus collected is invested by the fund manager in different types of securities depending upon the objective of the scheme. There is comprehensive knowledge and understanding of Demat Account amongst all individuals instrumental in selling the Demat Accounts Schemes to investors including employees of intermediaries. individual agents and financial planners.



Need for the Study  Create awareness among investors about the D-mat account. They also understand what information provides to investor for avoiding the risk.  Understand the total investments through d-mat account  Give basic knowledge to investors regarding risk and return companies. Equity Derivatives Trading: In order to assist market OBJECTIVE OF THE STUDY  The main objective of the study is to know about the potential of the market regarding people’s dealing in share market.  Also understand the D-mat and different way of trading Scope of the Study D-mat account Review can take review from market through this project.  To know the role of DEMAT ACCOUNT.  To know where people have already opened their demat a/c and on what basis.  To know the procedure of opening DEMAT ACCOUNT. RESEARCH METHODOLOGY 3 . Management people can get overall idea about the risk management regarding working of Investing.onwards.  The objective is to know that how many people in the city are aware of the Angel broking. T+2 days settlement cycle is being followed.

but this not enough to make the task of selecting the suitable research design simpler. how the research problem has been defined. The objective of study being the main determinant of the validity and reliability of the method adopted the degree of usefulness of the scientific method. limitations could be 4 . The fair selection can be arrived at through the objective assessment and of course comparison of various alternatives. Since there are many aspects of research methodology. what technique has been used for analyzing the data and a host of similar other questions Though there are more than one alternative approaches available to the researcher. Research Methodology concerning a research problem or study provide answers to various questions like. The choice of suitable method is further complicated by the possibility of many permutations and combinations. in line of action has to be chosen from variety of alternatives. Like the so-called suitable research design may require some in between approach. so that individual choice of suitable method is further complicated and make a viable whole.Research methodology refers to the search for Knowledge. what data have been collected and what particular method has been adopted to collect the data. the circumstances and problems also having a bearing in the choice. In it we study the various steps that are generally adopted by the researcher in studying his research problem along with logic behind them. in addition. The finally selected line of action must ensure that this is indeed best one as against those rejected by the researcher. To count a fem. It is a way to systematically solve the research problem. why a research study has been undertaken.

5 . time and urgency in conducting the research. Data collection procedure and methods of analyzing and reporting the findings.imposed in the sense of funds available. Research methodology can be said to have four major components namelyResearch design. So the final choice must be based on assessment of its advantage and disadvantages when weighted against affecting factors. Sample design.

Research Design
The research problem having been formulated in clear cut terms, the
researcher will be required to prepare a research design i.e., he will have to
state the conceptual structure with in which research would be conducted.
The preparation of such a design facilitates research to be as efficient as
possible yielding maximal information. But how all there can be achieved
depends mainly on the research purpose. Research purpose may be grouped
into four categories.
(1) Exploration
(3) Diagnoses and
(4) Experimentation.
Exploratory research studies are those whose main purpose is that of
formulating a problem for more precise investigation or of developing the
working hypotheses from on operational point of view.
Descriptive research studies are those studies which are concerned with
describing the characteristics of a particular individual, or of a group
Diagnostic research studies determine the frequency with which something
Experimental research studies are those where the researcher tests the
hypothesis of casual relationship between the variables.


Research design of this particular research study of dematerialization of
shares is primarily based on descriptive and diagnostic research design. As
descriptive and diagnostic research design describes the characteristics and
determines the frequency with which something occurs respectively,
similarly this research determines the characteristics of the individuals who
deal in share and also determine the frequency of dealing on the basis of
their characteristics.


Sample Design
All the items under consideration in any field of inquiry constitute a
‘Universe’ or ‘Population’. A complete enumeration of all the items in the
population is known as a census inquiry. This type of inquiry involves a
great ideal of time, money and energy. Hence quite often a few items so
selected constitute what is technically called a sample.
The researcher must decide the way of selecting a sample or what is
popularly known as sample design. A sample design is a definite plan
determined before any data are actually collected for obtaining a sample
from a given population. Samples can be either probability or nonprobability samples. With probability samples each element has a known
probability of being included in the sample but non-probability samples are
those based on simples do not allow the researcher to determine this
Probability samples are those based on simple random sampling, systematic
sampling , etc where as non probability samples are those based on
convenient sampling, judgment sampling etc.


in www. For this purpose questionnaire included were both open ended & close ended & mulplechoice questions. Secondary Sources: Secondary data is the data.DATA COLLECTION TECHNIQUES The required data is collected both from primary as well as secondary sources. which is collected and complied for different purposes. which are used in research for this study. Keeping in view the limited resources of time. The secondary data includes material collected from:Magazines & SIZE OF SAMPLE The overall sample involved in the study consisted of 50 individuals.sebi. The data was collected with the help of the questionnaire herself by the researcher. Internetwww. Primary Sources: The primary data was collected through structured unbiased questionnaire and personal interviews of investors. a limited sample of individuals. It was fixed before hand and every effort was made to cover the given number of individuals with available time for the collection of data for this project. Method used for analysis of study 9 of SHIRAM INSIGHT Stock Broking Limited investment solutions.

the researcher turns to the task of analyzing them. In the process of analysis. relationships or differences supporting or conflicting with original or new hypotheses should be subjected to tests of significance to determine with what validity data can be said to indicate any conclusion Interpretation The interpretation is done on the basis of the analyzed data and also some recommendations are given to fill the loopholes of the actual scenario. Thus researcher should classify the raw data into some purposeful and usable categories. The analysis of data requires a number of closely related operations such as establishment of categories. It is a time consuming and expensive method and requires more administrative planning and supervision.The methodology used for this purpose is Survey and Questionnaire Method. the application of these categories to raw data through coding. Analysis of Data After the data have been collected. 10 . tabulation and then drawing statistical inferences. It is also subjective to interviewer bias or distortion. The unwisely data should necessary be condensed into a few manageable groups and tables for further analysis.

 Money was also considered as a major constraint during the research work. 11 .  Personal biasness may be included in the research work. it was not possible for the researcher to approach all the people. they might have been in a form of expert comments which might have based the result of the study.  The respondents were asked to indicate their true responses to the questions being asked.LIMITATIONS OF THE RESEARCH STUDY  Due to the lack of time.  The results of the study may not be universally applicable due to regional constraints. but rather than giving the response.


3% Transaction Report. 13 . Insurance. Trading a/c. ICICI bank.from 3rd year.20 times for intraday. Secrecy. 10000/-for R-ALLY Pro. HDFC bank. Network. Insurance.250/. DP sell charge.Odin Software installation charge.8/Brokerage.De-Mat a/c.intraday-. Wealth Management Services. Margin money-50000/. Name of the bank with the help of which customer get the facility of net bankingAXIS bank . Margin a/c.Through mail(Free of Cost) Prepaid Scheme.Password provided to the customer has to change every after 15 days. Investment Banking.Equity. Types of trading accounts provided.for R-ALLY & R-ALLY Lite.DEMAT ACCOUNT How to open a d-mat account in Shiram Insight securities A/C opening charge. Services provided.1837 locations more than 498 cities. Commodities.450/Name of the software used.900/Maintenance charge.03% & Delivery-.Not available. Exposure.

1994. however. the number of listed stocks. The system was inefficient and time securities. with the main objective and responsibility for (i) protecting the interests of investors in Regulating the securities market. In order to provide efficiency. market capitalization. It was made mandatory for all Exchanges to follow a uniform weekly trading cycle in respect of scrips not under rolling settlement. continued to have different weekly trading cycles.Creation of Market Regulator: Securities and Exchange Board of India (SEBI). and (iii) consuming because of its inability to provide immediate matching or recording of trades. and turnover and investor population. Reduction of Trading Cycle: Earlier.INTRODUCTION Over a period. The following paragraphs list the principal reform measures undertaken since 1992. used to vary between 14 days to 30 days and the settlement involved another fortnight. the Securities market regulator in India. all scrips were moved to rolling settlement and the settlement period was reduced 14 . which enabled shifting of positions from one Exchange to another. the trading on stock exchanges in India was based on an open outcry system. (ii) promoting the development of the securities market. intermediaries. NSE introduced a nation-wide on-line fully automated screen based trading system (SBTS) on the CM segment on November 3. the trading cycle for stocks. was established under SEBI Act 1992. Screen Based Trading: Prior to setting up of NSE. based on type of securities. particularly in terms of resource mobilization. liquidity and transparency. In December 2001. the Indian securities market has undergone remarkable changes and grown exponentially. The Exchanges.

took off 13in 2000 with index futures after suitable legal and regulatory framework was put in place. stock exchanges were owned. In case of disputes. 1996 was passed to provide for the establishment of depositories in securities with the objective of ensuring free transferability of securities with speed and accuracy. all the stock exchanges in India have a demutualised set up. Currently. the public listed companies making IPO of any security for Rs. however. To prevent physical certificates from sneaking into circulation. the old settlement system was inefficient due to (i) the time lag for settlement and (ii) the physical movement of paper-based securities. integrity of the stock exchange suffered. There are two depositories in India. speculation and arbitrage. viz.10 crore or more have to 15 . NSDL and CDSL. single stock futures and single stock options.progressively from T+5 to T+3 days. To obviate these problems. They have been set up to provide instantaneous electronic transfer of securities. it has been made mandatory for all newly issued securities to be compulsorily traded in dematerialised form. was set up with a pure demutualised governance structure. The market presently offers index futures. Demutualisation: Historically. Demat (Dematerialised) settlement has eliminated the bad deliveries and associated problems. NSE. Now. Trading in derivatives. SC(R) A was amended in 1995 to lift the ban on options in securities. having ownership. T+2 days settlement cycle is being followed. management and trading with three different sets of people. controlled and managed by the brokers. Dematerialisation: As discussed before. Equity Derivatives Trading: In order to assist market participants in managing risks better through hedging. From April 2003 onwards. index options. the Depositories Act. however.

To address this concern.make the IPO only in dematerialised form. including government securities and tap the domestic market. The Indian stock exchanges have been permitted to set up trading terminals abroad. SEBI and the stock exchanges have also set up investor grievance / service cells for redress of investor grievance. The investments by FIIs enjoy full capital account convertibility. National Securities Clearing Corporation Ltd. Globalisation: Indian companies have been permitted to raise resources overseas through issue of ADRs. Further. (NSCCL). Investor Protection: In order to protect the interest of the investors and promote awareness. viz. as applicable to the Indian companies concerned. the Central Government (Ministry of Corporate Affairs 1) established the Investor Education and Protection Fund (IEPF) in October 2001. FIIs have been permitted to invest in all types of securities. which commenced its operations in April 1996. by passing a resolution of its Board of Directors followed by a special resolution to that effect by its general body. NSE had set up the first clearing corporation. the Exchanges and SEBI also maintain investor protection funds to take care of investor claims. They can invest in a company under portfolio investment route upto 24% of the paid up capital of the company. With the similar objectives. FCCBs and ECBs. GDRs. All these agencies and investor associations also organise investor education and awareness programmes. This can be increased up to the sectoral cap/statutory ceiling. The trading platform of Indian exchanges is now accessible through 16 . Clearing Corporation: The anonymous electronic order book ushered in by the NSE did not permit members to assess credit risk of the counter-party and thus necessitated some innovation in this area.

the Internet from anywhere in the world. which means that the investors (foreign institutional or domestic) who hold ADRs / GDRs can cancel them with the depository and sell the underlying shares in the market. It enables investors to apply for IPOs / FPOs and rights issues without making a payment. DMA allows brokers to offer their respective clients. the amount is blocked in 17 . NSE launched trading in currency future contracts in the USD-INR pair for the first time in India. Launch of India VIX 2: Volatility index is a measure of market’s expectation of volatility over the near term. Pound Sterling – INR and Japanese Yen was further made available for trading in March 2010. India VIX (based on the Nifty 50 Index Option prices) was launched by NSE in April 2014. direct access to the Exchange trading system through the broker’s infrastructure without manual intervention by the broker. Instead. Launch of Securities Lending & Borrowing Scheme: In April 2014. 1 Earlier known as Department of Company Affairs. 2014. SEBI allowed the direct market access (DMA) facility to the institutional investors. India’s first volatility index. It allows market participants to take short positions effectively with less cost. Launch of Currency Futures: On August 29. ASBA: Application Supported by Blocked Amount (ASBA) is a major primary market reform. It measures the amount by which an underlying Index is expected to fluctuate in the near term. the Securities Lending & Borrowing mechanism was allowed. RBI permitted two-way fungibility for ADRs / GDRs. Direct Market Access: In April 2014. Trading in other currency pairs like Euro – INR. based on the order book of the underlying index options.

ICDR Regulations 2015 would govern all disclosure norms regarding issue of securities. irrespective of their geographical locations. improving the depth and liquidity of the market. It allows faster incorporation of price sensitive information into prevailing prices. The trading on stock exchanges in India used to take place through open outcry without use of information technology for immediate matching or recording of trades. 2015. thus increasing the informational efficiency of markets. NSE introduced a nation-wide on-line fully automated screen based trading system where a member can punch into the computer quantities of securities and the prices at which he likes to transact and the transaction is executed as soon as it finds a matching sale or buy order from a counter party. It enables market participants. as well as on fraud resulting in improved operational efficiency. It 18 . Screen based electronic system electronically matches orders on a strict price/time priority and hence cuts down on time. to trade with one another simultaneous. liquidity and transparency. the SEBI issued Issue of Capital and Disclosure Requirements (ICDR) Regulations 2015. Launch of Interest Rate Futures: On August 31.investors’ own account and only an amount proportionate to the shares allotted goes out when allotment is finalized. This was time consuming and inefficient. This imposed limits on trading volumes and efficiency. cost and risk of error. futures on interest rate was launched on the National Stock Exchange. In order to provide efficiency. replacing the Disclosure and Investor Protection (DIP) Guidelines 2000. Issue of Capital and Disclosure Requirements (ICDR) Regulations 2015: In August 2015.

objective and fair. thus providing equal access to everybody.e. The trading system also provides market information online. (NSDL). The trading system provides tremendous flexibility to the users in terms of kinds of orders that can be placed on the system. NSE joined hands with leading financial institutions to establish the national securities depository Ltd. NSE became the leading stock exchange in the country. 19 .provides full anonymity by accepting orders. Screen based trading system helps in faster transfer of securities and no stamp duty is required on transfer of securities. with the objective of enhancing the efficiency in settlement systems as also to reduce the menace of fake/forged and stolen securities. Orders are matched automatically by the computer keeping the system transparent. The trading system operates on a strict price time priority. The sucked liquidity from other exchanges and in the very first year of its operation. the best buy order match with the best sell order. Now dematerialisation of shares is introduced “a new concept” which converts paper based physical trading into electronic trading. the first depository in the country. which helps to resolve disputes by logging in the trade execution process entirety. impacting the fortunes of other exchanges and forcing them to adopt SBTS also. It is a safe and convenient way to hold securities. All orders received on the system are sorted with the best priced order getting the first priority for matching i. This has ushered in an era of dematerialised trading and settlement. Today India can boast that almost 100% trading take place through electronic order matching. In order to promote dematerialization of securities. from members without revealing their identity. It also provides a perfect audit trial. big or small.

and the deadline for submission of PAN details to the depository lapsed on January 2011. The B. an investor will have to first open an account with a DP and then request for the dematerialisation of certificates by filling up a dematerialisation request form [DRF]. account of holder is credited and the securities loose their identities. The dematerialized account is used to avoid holding physical shares: the shares are bought and sold through a stock broker. The investor has to ensure that before the certificates are handed over to the DP for demat. they are defaced by marking "Surrendered for Dematerialisation" on the face of the certificates. the Certificates are destroyed and credit entry of exactly equal number of Securities is created in Depository in Electronic mode.O. which is available with the DP and submitting the same along with the physical certificates. Conversion of Securities from Physical (Paper) Mode into Electronic Mode is Called Dematerialization. the abbreviation for dematerialised account. is a type of banking account which dematerializes paper-based physical stock shares. In order to dematerialize certificates. Upon Demat. it became mandatory that any person holding a demat account should possess a permanent account number (PAN). 20 . This account is popular in India. securities and exchange board of India (SEBI) mandates a demat account for share trading above 500 shares.WHAT IS DEMAT In India. As of April 2006. Dematerialisation is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited in the investor's account with its DP. a demat account. The Client opens Demat Account with any DP. The market regulator.

PROCEDURE FOR OPENING AN ACCOUNT A demat account are opened on the same lines as that of a Bank Account. as specified by the DP. Standard Agreements are to be signed by the Client and the DP. in duplicate. It will also give a copy of the relevant agreement to be entered with the client. 21 . The DP officials have to do in person verification and affix the “IN PERSON VERIFICATION” stamp on the account opening form.ACCOUNT OPENING To avail the services of a depository an investor is required to open an account with a depository participant of any depository. which details the rights and obligations of both parties  The DP officials will make available the relevant account opening form (depending on whether the client is a retail investor or corporate client/clearing member) and specify the list of documents regarding references that should be submitted along with the form. It should also furnish such documents regarding references.  The client will submit the duly filled in account opening form and client has to visit personally for opening the account in DP. After executing the agreement the client has to forward it to the DP. Prescribed Account opening forms are available with the DP. needs to be filled in. along with the account opening form.

And affix the stamp “PAN VERIFIED” with date and sign on the stamp. a client account number will be generated by the DPM.  For Corporate Clients.  After completion of all documentation. the DP officials will reject the form and intimate the client of the same.  In case the documents are not proper. the DP officials will accept the same and affix the stamp “verified with original” on each and every proof after seeing the original proofs.  If the form is in order.  After entering client details in the system.  The DP officials will enter the client details as mentioned in the account opening form in the DPM (software provided by NSDL & CDSL to the Participant) screen provided for the purpose. the DP officials will verify the pan from income tax website. The DP officials will verify that the account opening form is duly filled in. Incomplete forms will be forwarded to the client for rectification. if any. the DP officials will verify if the board resolution for the authorized signatories is enclosed. In case of NSDL A/c opening the SR. stating the reasons for doing so. The DP officials will enter this in the 22 . It will also verify the enclosed documents. Assist will capture all the details in the DPM and record the client’s signature (on the form) as specimen for authorizations in the future.

account opening form.. Assist..  When the demat a/c is activated the DP officials have to send the client master and the copy of agreement between DP and client at the client’s address The account holder is called 'beneficial owner' in a depository system and the account is known as 'beneficiary account'.g. shares held in joint names of X & Y can also be dematerialised in an account opened in the names of Y & X as well by submitting an additional form (Transposition Form) alongwith Demat Request Form 23 .  To dematerialise existing physical holdings. Features of Beneficiary Account·  No minimum balance is required to be retained in a beneficiary account.  The DP officials are not allowed to give the demat a/c no to the clients until the a/c is activate. this is applicable for both NSDL & CDSL. two different accounts should be opened. the beneficiary account must be opened in the same ownership pattern in which the securities are held in the physical form e.if one certificate is in individual name and another certificate is jointly held by X & Y.  An investor can close a beneficiary account with one DP and open an account with another DP. However.g. securities can be dematerialised in the same account even though share certificates are in different sequence of names e. and activate the account. After that the officers will verify the details in the DPM captured by the SR. in case of joint holders.

Public financial institutions 6. Statutory/regulatory authorities 3. Electricity bills (not more than 2 months old) 24 . College affiliated to universities Proof of Address (POA):  Ration card  Passport  Voter ID card  Driving License  Bank passbook  Verified copies of : 1. Public sector undertakings 4. Central or state government and its department 2. Scheduled commercial banks 5.DOCUMENTS SHOULD BE REQUIRED FOR DEMAT ACCOUNT Proof of Identity (POI):  Passport  Voter ID card  Driving license  PAN card with photograph  Identity card with applicant’s photograph issued by 1.

 Passport-size photograph  Copy of PAN card along with original PAN card for verification Bank details:  Copy of cancelled cheque with printed name from the bank. Leave & license agreement/agreement to sell (duly attested) 4. College affiliated to universities.  Bank statement with name and address (duly authorized by the bank. In case of minor  Date of birth certificate duly notarized 25 .2.  Copy of bank passbook with name and address and copy of cancelled cheque. Residence landline telephone bill (not more than 2 months old) 3.  Identity card with applicants photograph issued by 1. Central or state government and its department 2. Self declaration by supreme court/high court judges. if statement is on plain paper) not more than 4 months old and copy of cancelled cheque of MICR & bank detail verification. Statutory/regulatory authorities 3. Public sector undertakings 4. Public financial institutions 6. giving the new address in respect of their own accounts. Scheduled commercial banks 5.

Original documents must be taken to the DP for verification. account may be opened in any one combination. to spell to the first name as well as the middle name.. POI and POA documents along with PAN card must be submitted in respect of all account holders.  (b) Mailing and communication address(es) . i. irrespective of the sequence in which names are appearing on share certificates.e.  Account opening form require the applicants to give the following details:  (a) Name(s) of account holder(s) -The investor should ensure that the name is identical to that which appears on the certificate(s) to be dematerialised. Proof of address and identity documents of the guardian both minor and guardian’s photograph and guardian to sign across both photographs  PAN card of minor as well guardian is mandatory In case of NRI  Foreign address and RBI approval date attested copy of RBI approval  NRO-Indian address along with proofs  Bank account details In case of joint holdings In case of joint holdings.The veracity of the applicant's address is determined through the documents submitted for 26 . In case of joint holdings. This would obviate any doubts about the veracity of the information. Investors are advised to open their account in their fully expanded name.  The DP will also provide a copy of the DP-Client agreement.

etc. Companies use this information for printing them on dividend/interest warrants etc.that of the account holder as well as the constituted attorney.  (e) Details of bank account -Details of bank account of the account holder. passport. proof is required for both addresses . The guardian is required to sign the application form. the applicant must furnish original or attested copies of the power of attorney and the approval letter from RBI permitting them to invest. voter ID. For NRI accounts. 27 . PAN card. including the nine digit code number of the bank and branch appearing on the MICR cheques issued by the bank have to be filled in the application form. as the case may be. and details of his name and address need to be given in addition to the details of the minor. the registered address of the company have to be furnished.verification like ration card. Articles of Association. a copy of Memorandum of Association.  (d) Foreign Address and RBI approval details for NRI. etc. driving license. SEBI registration details along with attested copy of registration certificate issued by SEBI and authorisation letter is required. bank passbook. FII or OCB accounts -For foreign-based applicants like NRIs. Board resolution permitting opening of account.  (c) Details of guardian in case account holder is a minor -Only a guardian can open a depository account for a minor.. OCBs. Flls. If the account holder is an FII or an OCB. For corporate accounts.

For corporate investors. The DP will ensure that client's signature is recorded on the form which will serve as specimen for authorizations in future.a facility of standing instruction is provided to the investors for receiving securities to the credit of their accounts without giving a separate receipt instruction.A beneficial owner can make a nomination of his account in favour of any person by filing the nomination form with his DP.  The demat account cannot be operated on "either or survivor" basis like the bank account. In case of the joint account for the beneficial owners.  The DP will verify whether the account opening form has been duly filled in or not. (f) Nomination declaration . He will also verify the submitted documents. then the DP will accept them and give an acknowledgement slip duly signed and stamped to 28 . Such nomination is considered to be conclusive evidence of the account holder'(s) disposition in respect of all the securities in the account for which the nomination is made. all the joint holders have to sign the account opening form.  If the application form and documents are in order. the DP will also verify whether the board resolution for the authorized signatories has been enclosed.  The investor will submit to his DP the duly filled in account opening form & DP-client agreement along with the documents.  (g) Standing Instruction .

The registered holder of the securities should make the request. After entering client details in the system. Only after such connectivity is established that the securities 29 . the DP will give:  Client Id . The company/issuer should have established connectivity with NSDL/CDSL.  On successful opening of the account. The DP will execute the agreement and give a copy of it to the client. 3.the client.  After completion of all documentation. a client account number will be generated by the eight digit number to be used along with DP Id for any future transactions. 2. The DP will enter this in the account opening form. In other words. The report will be generated by the DPM. Securities to be dematerialised must be recognized by NSDL/CDSL as eligible. PREREQUISTIES FOR DEMATERIALISATION REQUEST 1. the DP will enter the client details as mentioned in the account opening form in the DPM (software provided by NSDL to the DP) screen provided for the purpose. only those securities whose ISIN has been activated by NSDL/CDSL.  A copy of the report listing the client details captured in the DPM database to the client. can be dematerialised.  Delivery Instruction slip book.

The quantity of shares mentioned in the DRF is more than the actual certificates sent. REASONS FOR DEMATERIALISATION REQUEST REJECTION 1. 5. Original certificates present are those for which the duplicates have already been issued. 9. 4.of that company/issuer are recognized to be "available for dematerialization". or the order of the holders name on the DRF is different from the names given on the certificates. The certificates sent are reported Stolen. Endorsements on the certificates are forged. Securities stand on a different name than those mentioned in the DRF. The scrutiny by the DP is incomplete. The quantity of shares mentioned in the DRF is less than the actual certificates sent. 8. 7. The securities attached / DRF does not pertain to the R&T Agent to whom the DRF is sent. 30 . 4. The details mentioned on the certificates do not match with the details on the DRF. 2. 5. 3. The request should be made in the prescribed dematerialisation request form. The holder of securities should have a beneficiary account in the same name as it appears on the security certificates to be dematerialised. 6. The certificates sent are fake.

stamp duty of 0. then such instructions may be given to the DP. Specimen Signature on the DRF differs from the signatures recorded with the Registrar / Transfer Agents. 12. BENEFITS OF DEMATERIALISATION  No stamp duty for transfer of securities in the Depository System. he will need to give a receipt instruction to his DP for receiving credits to his account. 31 . The certificates sent have a court injunction against them Precautions:  Corporate investors to enclose Memorandum of Association/Trust deed/Board resolution for the authorized signatories along with the account opening form.  Details with respect to the bank account details of an investor must be indicated in the space provided for the same in the account opening form. 11.10. Electronic request received but physical certificates are not received with in 15 days. In the case of physical shares.25% of sale value is payable on transfer of shares.  If an investor is interested in availing the facility of standing instructions for credits to his account. Otherwise.

theft.  Facility to pledge and hypothecate securities. In respect of shares in "compulsory Demat" category. damage. Pledging Dematerialised securities is easier and advantageous as compared to pledging physical shares. etc. In addition. Even a single share can be traded at the market rates without any reduction in realisation. Elimination of bad deliveries and all risks associated with physical certificates such as loss in transit. investor can obtain a statement of holdings as and when required for a fee. and offer better terms.  Just like a bank branch. the DP will give a periodical statement of account of holdings. 32 .  In case investor loses the statement of holdings.  Instead of filling up transfer deed(s) a simpler form is to be given `to the DP.  Odd lots are not differentiated in the electronic system.  Facility for freezing/locking of investor accounts to make it nonoperational for specified period. he can inform his DP and obtain a duplicate statement. mutilation. Investor's statement of holdings cannot be used by anybody else for trading in his account. banks prefer to lend against shares held in electronic form.

33 . 6.  Every transaction in investor's account will have to be authorised by him. Client defaces certificates and DP punches two holes on name of company. Grievances. 2. DP enters demat request in system for Depository. Client submits DRF & physical certificates to DP. Depository credits the demat securities to BO a/c of client and intimates DP electronically. Depository records the details and sends to R&T. he signs an agreement with the DP in which the DP will indemnify the investor for any misuse of his holdings. which ensures total control of the investor over his investment  A safe and convenient way to hold securities and there is immediate transfer of securities. 3. 8. R&T agent verifies the details and confirms to Depository. DP dispatches certificates along with DRF to R&T. against his DP will be resolved by the Depository. 7. 9. 5. The depository will also ensure thatthe interests of the investor are protected. DEMAT PROCESS 1. Securities must be recognized by Depository as eligible. 4. DP checks securities. if any. The registered holder of the securities makes the request. When an investor opens an account with a DP.

34 .10.DP issues statement to client.

Demat Request Form (DRF) Shareholder fills DRF in duplicate.DEMAT -PROCESS Demat Process: Shareholders Depository Participants Account Opening The DP sends Share certificates to R&T agent for dematerialisation R&T Agent With Physical Certificate Shareholder goes to DP with his physical share certificates Shareholder opens his account with DP. of the Investor 35 . the Depository confirms Dematerialisation. defaces the shares and hands over to DP Depository DP sends information electronically to Depository Dematerialisation Upon confirmation of Demat by R&T Agent. Credit to the BO A/c.

An investor can open more than one account in the same name with the same DP and also with different DPs. 36 . the investor must ensure that any subsequent change in bank account details is informed to the DP. Since in the depository system monetary benefits on the security balances are paid as per the bank account details provided by the investor at the time of account opening. who in turn will update the records. An investor has not to keep any minimum balance of securities in his/her accounts. cash corporate benefits such as dividend. This will obviate the need of informing different companies. by the company. It is for the protection of investor’s interest. Further.INFORMATION NEEDED FOR DEMAT ACCOUNT An investor has to give his bank account details at the time of account opening. interest will be credited to the investors account directly through the ECS (Electronic Clearing Service) facility. wherever available. Depository / DP can be chosen by investor as per convenience irrespective of the DP of the broker. The demat account must be opened in the same ownership pattern such as securities owned individually in which the securities are held in the physical form. g. e. two different accounts would have to be opened. if one share certificate is in the individual name and another certificate is jointly with somebody. An Investor should immediately inform his/her DP if the address of the investor changes. The bank account number will be mentioned on the interest or dividend warrant. An investor can change the details of his bank account. so that such warrant cannot be encashed by any one else.

The head office where all the technology rests and details of all accounts held is like the depository. a DP is an entity who is registered as such with SEBI under the provisions of the SEBI Act. Depository also provides services related to transactions in securities. And the DPs are the branches that cater to individuals. They are the intermediaries between the depository and the investors. Apart from holding the securities. a Depository Participant (DP) is described as an agent of the depository. Securities of the investors are held in electronic / book entry form by the Depository. National Securities Depository Limited (NSDL) and Central Depository Services (I) Limited (CDSL) are registered with SEBI 37 . In India. The relationship between the DPs and the depository is governed by an agreement made between the two under the Depositories Act. In a Strictly legal sense. Think of it like a bank.WHAT IS DEPOSITORY AND DEPOSITORY PARTICIPANT Depository can in many ways be compared to a bank. At present two Depositories viz.

registered stockbroker or a non-banking financial company subject to the approval from the Depository Company and SEBI. 38 . UTI. NSDL has minimum SHIRAM INSIGHT of Rs 100 crores. NSDL was set up to provide electronic depository facilities for securities being traded in capital market. bank. NSDL deals with shares in dematerialized form through depository participants who are agents of investor banks. The Securities and Exchange Board of India (SEBI) issued guidelines for depositories in May. and National Stock Exchange (NSE). stockbrokers and financial institutions. The depositories ordinance was promulgated by the Government of India in September 1995.NATIONAL SECURITIES DEPOSITORY LIMITED (NSDL) NSDL was the first depository organization promoted by IDBI. NSDL Depository Participant can be a public financial institution. 1996. minimize risk and reduce costs. NSDL aims at ensuring the safety and soundness of Indian capital market by developing settlement solutions that increase efficiency. custodian.

CDSL was promoted by Bombay Stock Exchange Limited (BSE) jointly with leading banks such as State Bank of India. 1999 from SEBI.CENTRAL DEPOSITORY SERVICES (INDIA) LIMITED (CDSL) CENTRAL DEPOSITORY SERVICEES LIMITED (CDSL) is second depository in India. Each and every activity of CDSL stem from the essential reason behind forming this depository. counterfeit resulting in bad deliveries. at regular intervals.e. which gives the details of the securities holdings and transactions. CDSL is secured “Certificate of Commencement” of business on Feb 8. to encourage India's individual investors to benefit from actively participating in a depository. The DP is required to provide the investor. Bank of India. is set up to meet the objective the Act & to fulfill the user’s need. 39 . The balances in the investors’ account recorded and maintained with CDSL can be obtained through the DP. i. a statement of account. which were prone to be fake. HDFC Bank. Union Bank of India and Centurion Bank. Standard Chartered Bank. CDSL offers an efficient and instantaneous transfer of securities. forged. The depository system has effectively eliminated paper-based certificates. Bank of Baroda.

e. known as remat. MRD/DoP/Dep/Cir-22 /05 dated November credit into electronic form  Depository restrict the risk of fraud The charges for account closure and securities transfer due to account closing. i.  Transfer of securities. Bonus / Rights . viz. SEBI vide Circular No. viz.Services provided by Depository system  Dematerialisation (usually known as demat) is converting physical certificates to electronic form. getting physical certificates from the electronic securities.Cash corporate benefits. 2005 advised that with effect from January 09. 2006. no charges shall be levied by a depository on DP and consequently. Loan against shares  Electronic credit in public offering of the Companies  Non .  Rematerialisation. is reverse of demat. change of beneficial ownership  Settlement of trades done on exchange connected to the Depository  Pledge / Hypothecation of demat shares. by a DP on a Beneficiary Owner (BO) when a BO transfers all the securities lying in his account to another branch of the same DP or to another DP of the same depository or another 40 .

provided the BO Account/s at transferee DP and at transferor DP are one and the same. Accounts can be frozen for debits (preventing transfer of securities out of accounts) or for credits (preventing any movements of hindrances into accounts) or for both. In case the BO Account at transferor DP is a joint account. not fulfilling the above-stated criteria. the BO Account at transferee DP should also be a joint account in the same sequence of ownership. if so desired. Freeze or lock of an account Investors can freeze or lock their accounts for any given period of time.depository. All other transfer of securities consequent to closure of account.e. would be treated like any other transaction and charged as per the schedule of charges agreed upon between the BO and the DP. i. identical in all respects. 41 .

Now depository holds securities in dematerialised form. The procedure for buying and selling dematerialised securities is similar to the procedure for buying and selling physical securities. In case of sale:The investor will give delivery instruction to DP to debit his account and credit the broker’s account. However one can give standing instruction for credit in to ones accounts that will obviate the need of giving Receipt Instruction every time. In case of purchase: The broker will receive the securities in his account on the payout day  The broker will give instruction to its DP to debit his account and credit investor's account  Investor will give ‘Receipt Instruction to DP for receiving credit by filling appropriate form. 42 . The process of physical moving the securities from seller to his broker to clearing corporation to the buyer’s broker and finally to the buyer took time with the risk of delay somewhere along the chain. Such instruction should reach the DP’s office at least 24 hours before the pay-in as other wise DP will accept the instruction only at the investor’s risk.Trading / Settlement Traditionally settlement system on Indian stock exchanges gave rise to settlement risk due to the time that elapsed before trades were settled by physical movement of certificates. The difference lies in the process of delivery (in case of sale) and receipt (in case of purchase) of securities.

(5) Instructions to depositories to make securities available by pay-intime. (6) Pay-in of securities (NSCCL advises depository to debit pool account of custodians/CMs and credit its account and depository does it). NSCCL applies multilateral netting and determines obligations.Settlement Process in CM segment of NSE Explanations: (1) Trade details from Exchange to NSCCL (real-time and end of day trade file). (2) NSCCL notifies the consummated trade details to CMs/custodians who affirm back. (7) Pay-in of funds (NSCCL advises Clearing Banks to debit account of custodians/CMs and credit its account and clearing bank does it). (8) Pay-out of securities (NSCCL advises depository to credit pool account of custodians/CMs and debit its account and depository does it). (4) Instructions to clearing banks to make funds available by pay-in time. Based on the affirmation. 43 . (3) Download of obligation and pay-in advice of funds/securities.

 If the account is a joint account. in a depository account 'Receipt in' form has to be submitted to receive securities in the account. Instruction cannot be executed if all joint holders have not signed. facility of 'standing instruction' is given..  Do not leave signed blank DIS with anyone viz. 44 .  Ensure that your account number [client id] is pre-stamped. However.  Avoid using loose slips. Similarly. The following precautions are to be taken in respect of DIS: Ensure and insist with DP to issue DIS book. you need not submit 'Receipt in' slip everytime you buy securities.  Ensure that DIS numbers are pre-printed and DP takes acknowledgment for the DIS booklet issued to investor. If you are particular that securities can be credited to your account only with your consent. credit to the account is given only when a 'pay in' slip is submitted together with cash/cheque.'Standing Instruction' given in the account opening form In a bank account. then do not say 'yes' [or tick ] to standing instruction in the application form. broker/sub-broker. for the convenience of investors. Delivery Instruction Slip (DIS) and the precautions which one need to observe with respect to Delivery Instruction Slips To give the delivery one has to fill a form called Delivery Instruction Slip (DIS). DIS may be compared to cheque book of a bank account. all the joint holders have to sign the instruction slips. If you say 'Yes' for standing instruction.

 Investor should personally fill in target account -id and all details in the DIS. You can lend your securities through Approved Intermediaries registered with SEBI. you may lend securities any time by submitting lending instruction to your DP. called SPEED-e and EASI respectively. Lending and borrowing has to be done through an 'Approved Intermediary' registered with SEBI.  If only one entry is made in the DIS book. he can borrow the same from another person who is willing to lend as per the Securities Lending and Borrowing Scheme. 45 . The facility can be used by all registered users after paying the applicable charges. The approved intermediary would borrow the securities for further lending to borrowers.Both NSDL and CDSL have launched this facility for delivering instructions to your DP over Internet. Lenders of the securities and borrowers of the securities enter into separate agreements with the approved intermediary for lending and borrowing the securities. One can lend his/her demat seurities by entering into an agreement with the approved intermediary to be a lender under this scheme. Keep the DIS book under lock and key when not in use. Lending and borrowing of demat securities If any person required to deliver a security in the market does not readily have that security. After that. strike out remaining space to prevent misuse by any one. Lending and borrowing is affected through the depository system. It is possible to give delivery instructions to the DP over Internet .

One can receive the corporate benefits which would accrue on these securities during the period of lending. Intermediary has to repay the securities together with any benefits received during the period of the loan.Intermediary may return the securities at any time or at the end of the agreed period of lending. 46 .The benefits will be given to the Intermediary/borrower. However. whenever the securities are being returned / recalled. Intermediary/borrower will return the securities together with benefits received.

please advice your DP regarding change of address. please send proof of age (such as attested copy of Birth Certificate or School Leaving Certificate) - In the case of limited companies. - For effecting change of status from minor to major. If shares are held in demat form. 47 . quoting Folio No. - Request for change of name consequent upon marriage/divorce should be accompanied with marriage certificate/divorce decree. This is the reason for which we would advise you not to send change of address request by mail. a certified copy of the Certificate of Incorporation consequent to Change of Name issued by the Registrar of Companies should be submitted along with Memorandum & Articles of Association - The new specimen signature duly attested by holder's banker should be lodged with the Company to take on record the new signature. Change of Address Please inform the R&TA viz Integrated Enterprises (India) Limited immediately if there is any change in address. Duly signed by the main (1st) holder as per specimen signature recorded with us.PHYSICAL SEGMENT Change in Name / Status - All requests for change of name should be accompanied by a copy of the notification in Official Gazette or a Newspaper.

the procedure to be followed for obtaining duplicate share certificates will be advised Nomination Nomination when shares are held in physical form Nomination will enable smooth inheritance of ownership of the shares by the Nominee without any procedural difficulties. accompanied by FIR lodged with local police station giving full details of lost certificate(s) such as certificate(s) Nos.. giving full details of Certificate Nos.Loss of Share Certificates Any communication to the Company regarding loss of share certificates should always be signed by the shareholder as per specimen signature registered with the Company. Distinctive Nos. . there is no difficulty where shares are registered in joint names. (Presently. . etc. Distinctive Nos. involving share transfer form. . etc. Following the nomination procedure eliminates all this inconvenience). with the intention of holding them for some more time. if shares are held in a single name. then please advise nomination immediately without delay Following Instructions for the Nomination 48 .Please immediately apply for injunction order in appropriate Court of Law for stopping transfer. addition of a joint name can only be done as a transfer. surrender of original certificates etc. Therefore. stamp duty.Upon receipt of such communication.. But if the shares are held in an individual name.

of shares. The Nomination Form should be filed in duplicate with the Company. if the shares are transmitted as per the nomination filed with the company. all joint holders must sign the nomination form. society. Non-individuals including society. body corporate. 8. ISIN 49 .1. Nomination can be made only by individuals. trust. 5. 3. Although Form 2B as prescribed does not provide for specimen signature of nominee. Nomination will stand cancelled upon transfer of shares. If the shares are held jointly. body corporate. who will return one copy thereof to the shareholder. A minor can be nominated by a holder of shares and in that event the name and address of the Guardian must be given by the holder. partnership firm. 4. shareholders are requested to attach separate sheet(s) giving details of distinctive nos. 2. Karta of Hindu Undivided Family. partnership firm. this has been suggested in order to facilitate smooth transmission of title to the nominee when the need arises. without any further reference to the legal heirs of a deceased individual shareholder(s) 6. The Company will be fully discharged from its responsibility towards the legal heirs of a shareholder. Karta of Hindu Undivided Family or a power of attorney holder. The nominee shall not be a trust. holding shares on their own behalf singly or jointly. holder of power of attorney cannot nominate. Where the space provided in the Form is not sufficient. 7. A non-resident Indian can be a nominee on repatriable basis.

Different ISINs are allocated to the physical and dematerialised securities of the same issue. The basic number comprises nine alphanumeric characters (letter and/or digits). a basic number and a check digit. International Securities Identification Number (ISIN) is a unique identification number for each security issued in any of the International Standards Organisation (ISO) member countries in accordance with the ISIN Standard (ISO 6166). The pre-fix is a two-letter country code as stated under ISO 3166 (IN for India). The numbering system is simple. issued at different times or carrying different rights. In India.Double". International Securities Identification Number (ISIN) Each of the securities dematerialised in the NSDL depository bears a distinctive ISIN – an identification number. terms and conditions are considered different securities for the purpose of allocating ISIN and are allotted distinct ISINs. The check digit at the end of the ISIN is computed according to the modulus 10 "Double-Add. The numbering system of ISIN is in compliance with the structure of ISIN adopted by SEBI. The ISINs allotted by NSDL does not at any point of time breach the uniqueness of ISIN of physical form for the same security. International Securities Identification Number: 50 . It establishes that the ISIN is valid. ISO 6166 was developed for use in an international (cross-border) as well as domestic trades. Securities issued by the same company. SEBI being the national numbering agency for India has permitted NSDL to allot international securities identification number (ISIN) for demat shares. ISIN is a 12-character long identification mark. It has three components . SEBI assigns ISIN to various publicly traded securities. ISIN for a security is allotted when the security is admitted to NSDL.a pre-fix.

IN(in accordance wirh ISO 3166).1. The first two characters represent country code i. 3. It has three components. Issued by International Standards Organisation (ISO) member countries in accordance with ISO 6166. It ensures the ISIN is valid. The third characters represents the issuer type as detailed below: 51 .e. basic & check digit. 5. 2. Prefix is a two letter country code i. prefix.e. The basic number has nine alpha numeric characters. IN for India. Numbering system of ISIN The numbering structures for securities in NSDL is of 12 digit alpha numeric string. ISIN is 12 digit alpha numeric number. The last digit is check digit. 6. 4.

The first 3 characters are numeric. The next two characters (the tenth and eleventh characters) are serially issued for each security of the issuer entering the system. Baking company E Mutual funds including UTI F The list may be expanded per the needs. Last digit is double-add-double check digit.Issuers type Issuer type code allotted Central government A State government B Municipal corporation C Union territories D Company. statutory corporation. The numbering begins with ‘001A’ and continues till ‘999A’ and proceeds to ‘001B’. Maximum issuer types can be 35 (A to Z and 0 to 8. Both the characters are numeric. the pro-rata dividend shares are identified by 9). the next two characters (the eight and ninth characters) represent security type for a given issuer. The fourth character is alpha character. The next 4 characters (fourth to seventh character) represent company identity. 52 .

The security types are planned which may be expanded as per the need as detailed below:Security type Code Equity 01 Non voting equity 02 Convertible preference shares 03 Non convertible preference shares 04 Mutual fund units –close ended 05 Mutual fund units-open ended 06 Secured debentures 07 Unsecured debentures 08 Regular return bonds-promissory notes 09 Floating rate bonds 10 Deep discount bonds 11 Step discount bonds 12 Warrants 13 53 .


55 . The NSE has also proved its leadership in the Indian financial market by gaining many awards such as 'Best IT Usage Award' by Computer Society in India (in 1996 and 1997) and CHIP Web Award by CHIP magazine (1999). Capital market reforms in India and the launch of the Securities and Exchange Board of India (SEBI) accelerated the incorporation of the second Indian stock exchange called the National Stock Exchange (NSE) in 1992.INDUSTRY PROFILE NATIONAL STOCK EXCHANGE The National Stock Exchange of India (NSE) situated in Mumbai .is the largest and most advanced exchange with 1016 companies listed and 726 trading members. Today the NSE takes the 14th position in the top 40 futures exchanges in the world. Finally. the National Stock Exchange of India launched S&P CNX Nifty and CNX Junior Indices that make up 100 most liquid stocks in India. the Futures and Options segment began operating in 2000. The Wholesale Debt Market (WDM) commenced operations in June 1994 and the Capital Market (CM) segment was opened at the end of 1994. After a few years of operations. In 1996. the National Stock Exchange of India launched its web-site and was the first exchange in India that started trading stock on the Internet in 2000. The Indices are owned and managed by India Index Services and Products Ltd (IISL) that has a consulting and licensing agreement with Standard & Poor's. the NSE has become the largest stock exchange in India. Three segments of the NSE trading platform were established one after another. CNX Nifty is a diversified index of 50 stocks from 25 different economy sectors. In 1998.

Unlike most world exchanges. 56 . However. The National Stock Exchange of India has stringent requirements and criteria for the companies listed on the Exchange. the NSE uses the satellite communication system that connects traders from 345 Indian cities. the ownership as well as the management does not have a right to trade on the Exchange. Minimum capital requirements. index based derivatives and index funds. IISL is India's first specialised company focused upon the index as a core product. which is divided into three segments: Wholesale Debt Market (WDM). in the totally de-mutualised Exchange. Nifty was developed by the economists Ajay Shah and Susan Thomas.The NSE is owned by the group of leading financial institutions such as Indian Bank or Life Insurance Corporation of India. It is used for a variety of purposes such as benchmarking fund portfolios. then at IGIDR. listed companies pay variable listing fees based on their corporate capital size. In addition. the CM segment has increased by even 61% during the same period. (IISL). IISL have a consulting and licensing agreement with Standard & Poor's (S&P). Only qualified traders can be involved in the securities trading. fully electronic trading platform that is operated through a VSAT network. provides its clients with a single. Later on. Each segment has experienced a significant growth throughout a few years of their launch. and company's track record are just a few of the criteria. The National Stock Exchange of India Ltd. S&P CNX Nifty is a well diversified 50 stock index accounting for 22 sectors of the economy. which is a joint venture between NSE and CRISIL. is the leading index for large companies on the National Stock Exchange of India. project appraisal. and Futures & Options (F&O) Market. who are world leaders in index services. While the WDM segment has accumulated the annual growth of over 36% since its opening in 1994. NSE Nifty: The S&P CNX Nifty (nicknamed Nifty 50 or simply Nifty). Capital Market (CM). The NSE is one of the few exchanges in the world trading all types of securities on a single platform. The advanced technologies enable up to 6 million trades to be operated daily on the NSE trading platform. it came to be owned and managed by India Index Services and Products Ltd.

CNX stands for CRISIL NSE Indices. 'N' stands for NSE and X stands for Exchange or Index. Thus.e. NSE and CRISIL. NSE other indices:  S&P CNX Nifty  CNX Nifty Junior  CNX 100  S&P CNX 500  CNX Midcap  S&P CNX Defty  CNX Midcap 200 57 . to reflect the identities of both the promoters. 'C' stands for CRISIL. i. CNX ensures common branding of indices. The S&P prefix belongs to the US-based Standard & Poor's Financial Information Services.

BOMBAY STOCK EXCHANGE: The Bombay Stock Exchange Limited (formerly. also called the BSE 30. popularly called The Bombay Stock Exchange. 1875. Mumbai. 58 . was formally organized as the Bombay Stock Exchange (BSE). India. 33. There are around 5. As of October2006. is a widely used market index in India and Asia. In 2005. the status of the exchange changed from an Association of Persons (AoP) to a full fledged corporation under the BSE (Corporatization and Demutualization) Scheme. 2005 (and its name was changed to The Bombay Stock Exchange Limited). Mumbai. the Government of India recognized the Bombay Stock Exchange as the first stock exchange in the country under the Securities Contracts (Regulation) Act. The Stock Exchange. The BSE SENSEX (SENSitive indEX). when it was replaced by an electronic (eTrading) system named BOLT. and has a significant trading volume.In January 1899. or the BSE Online Trading system. It is located at Dalal Street. or BSE) is the oldest stock exchange in Asia. As of 2005. the stock exchange moved into the Brokers’ Hall after it was inaugurated by James M MacLean.4 trillion (US $ 730 billion). After the First World War. History: An informal group of 22 stockbrokers began trading under a banyan tree opposite the Town Hall of Bombay from the mid-1850s.600 Indian companies listed with the stock exchange. Bombay Stock Exchange was established in 1875. the BSE was shifted to an old building near the Town Hall. it is among the 5 biggest stock exchanges in the world in terms of transactions volume. the market capitalization of the BSE was about Rs. In 1956.1995.

the level of index at any point of time reflects the total market value of 30 component stocks relative to a base period. SENSEX calculation: SENSEX is calculated using a "Market Capitalization-Weighted" methodology. (The market capitalization of a company is determined by multiplying the price of its stock by the number of shares issued by the company).BSE Sensex: The BSE SENSEX (also known as the BSE 30) is a value-weighted index composed of 30 scrips. BSE website and news wire agencies. From September 2003. The "free-float Market CapitalizationWeighted" methodology is a widely followed index construction methodology on which majority of global equity benchmarks are based. The SENSEX captured all these happenings in the most judicial manner. The index is widely reported in both domestic and international markets through print as well as electronic media. The set of companies which make up the index has been changed only a few times in the last 20 years. More recently. with the base April 1979 = 100. These companies account for around one-fifth of the market capitalization of the BSE. The base year of SENSEX is 1978-79. As per this methodology. well-established and financially sound companies. SENSEX is not only scientifically designed but also based on globally accepted construction and review methodology. SENSEX. the bourses in India witnessed a similar frenzy in the 'TMT' sectors. The growth of equity markets in India has been phenomenal in the decade gone by. One can identify the booms and bust of the Indian equity market through SENSEX. The values of all BSE indices are updated every 15 seconds during the market hours and displayed through the BOLT system. Right from early nineties the stock market witnessed heightened activity in terms of various bull and bear runs. An index of a set of combined variables (such as price and 59 . first compiled in 1986 was calculated on a "Market Capitalization-Weighted" methodology of 30 component stocks representing a sample of large. the SENSEX is calculated on a free-float market capitalization methodology.

are used by the trading system to calculate SENSEX every 15 seconds and disseminated in real time. prices of the index scrips. are automatically used by the trading computer to calculate the SENSEX every 15 seconds and continuously updated on all trading workstations connected to the BSE trading computer in real time.other Indices: Apart from BSE SENSEX. This is often indicated by the notation 1978-79=100. The actual total market value of the stocks in the Index during the base period has been set equal to an indexed value of 100. at which trades are executed. The formula used to calculate the Index is fairly straightforward. which is the most popular stock index in India.During market hours. The calculation of SENSEX involves dividing the total market capitalization of 30 companies in the Index by a number called the Index Divisor. It is much easier to graph a chart based on indexed values than one based on actual values. The base period of SENSEX is 1978-79. During market hours. at which latest trades are executed. However. the calculation of the adjustments to the Index (commonly called Index maintenance) is more complex. A single indexed number is used to represent the results of this calculation in order to make the value easier to work with and track over time. BSE . prices of the index scrips. BSE uses other stock indices as well:  BSE 500  BSE PSU  BSE MIDCAP  BSE SMLCAP 60 .number of shares) is commonly referred as a 'Composite Index' by statisticians. It keeps the Index comparable over time and is the adjustment point for all Index maintenance adjustments. The Divisor is the only link to the original base period value of the SENSEX.


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We are not doing him a favour by serving him.Our CRM Policy : Customer is King “A Customer is the most Important Visitor on our premises.” . He is part of it. He is not an interruption in our work. but we are dependent on him. achieved by teamwork and a process of continuous improvement. 63 . He is doing us a favour by giving us an opportunity to do so. He is the purpose of it. He is not an outsider in our business. He is not dependent on us.Mahatma Gandhi Business Philosophy  Ethical practices & transparency in all our dealings  Customers interest above our own  Always deliver what we promise  Effective cost management Our Quality Assurance Policy We are committed to providing world-class products and services which exceed the expectations of our customers.

He ventured into stock trading with an intention to raise capital for his own independent enterprise. Thus India’s first retail-focused stock-broking house was established in 1987. His technical and fundamental outlook has provided impetus to Angel’s market research team. Dinesh Thakkar. Thakkar is valued for his understanding of the economy and the stock-market. Investing in shares or stock market is inarguably the best route to long-term wealth accumulation. Research-based & personalized advisory services are Angel’s forte. Mr. Mr. Dinesh Thakkar Founder Chairman & Managing Director The Angel Group of Companies was brought to life by Mr.Mr. He’s been a part of the senior management team since the Angel Group’s inception. However. he recognized the opportunity offered by the stock market to serve individual investors. more effective and affordable services to retail investors. Lalit Thakkar is truly a genius. where and how to invest. Angel became the first broking house to embrace new technology for faster. His views on the market trend are often quoted in the print and electronic media. Lalit Thakkar is the motivating force behind Angel’s highly acclaimed Research team. Lalit Thakkar has undoubtedly been the brain behind it. it is more appropriate to take help of an experienced and trustworthy expert who will guide you as to when. Mr. However. His hands-on experience and fundamental knowledge of the market can predict the market trend early. When it comes to analyzing the market. and Mr. Lalit Thakkar Managing Director – Institutional broking Mr. Hence. it can also be a very risky proposition due to high riskreturn trade-off prevalent in the stock market. Angel provides guidance in the exciting world of stock market with 64 . Under his leadership. The print and electronic media often seek his views on the market trend as well as investment strategies.

Online Trading Three different online products tailored for traders & investors Customized single screen Market Watch for multiple exchanges Real-time rates Flash news & intra-day calls Intra-day & historical charts with technical tools Online research E-broking & back-office software training Quality Research Wide range of daily. Currency and Commodities. 65 .suitable trading solutions and value-added tools and services to enhance your trading experience. Future contracts are available on Equities. Over past few years. weekly and special Research reports Expert Sector Analysts with professional industry experience Advisory Real-time market information with News updates Investment Advisory services Dedicated Relationship Managers Portfolio Management Services Support 24x7 Web-enabled Back Office Centralized Help Desk Live Chat support system The derivative segment is a highly lucrative market that gives investors an opportunity to earn superlative profits (or losses) by paying a nominal amount of margin. Future & Options segment has emerged as a popular medium for trading in financial markets. provides you a gateway to the exciting world of derivative market. Indices. Angel with its membership as Trading and Clearing Member of NSE F&O Segment and BSE Derivatives Segment.

motivated. demands HR to be a key responsibility area of our core management team. forward-looking organization like ours.Work Culture. A fast-growing. all working diligently to take Angel's exciting success story forward.At Angel. Ours is a winning t eam of highly determined. We consider people as our biggest asset and believe in creating long term relationships by nurturing talent from within. we keep exploring new paths to provide the best value to all our internal and external customers. Our HR team constantly explores ways to enhance and augment the knowledge base and productivity of all Angels by providing various learning and development Programs. Our three tier Leadership Development program helps all star performers to grow and develop their managerial skills to become effective mentors for their teams and thereby take on the next level of responsibility effectively. 66 . and adaptable people.

The Business of HR is to foster an entrepreneurial spirit – whereby Angels can operate with ownership as an entrepreneur (profit center) within the confines of their job role and earn over and above their fixed salaries. People come first. Along with our customers. leading to a productive and happy work force  Angel believes that people impact business and therefore each and every Angel is a key resource and a valuable asset  Our business philosophy of being transparent in all our dealings with our customers. We believe in inculcating a sense of responsibility and ownership in all Angels which brings out the entrepreneurial zeal to explore potential within as well as beyond job boundaries. emotional and material levels.  We aim to create an environment conducive to both personal and professional development of the employees. is equally applicable in dealings with employees  We encourage initiative. our employees are equally vital to our organization.HR Philosophy At Angel. provide professional freedom and empower Angels based on trust 67 . Our HR Philosophy is to engage employees at professional.


Research is conducted for finding the solution of the problem. ARE YOU AWARE OF DEMAT ACCOUNT? 69 . So it can also be possible that investors will rise in near future. The sample size in this study consisted of 50 individuals and data analyzed from the response of these 50 individuals. There are some questions related to this research to interpret the result. ARE YOU AWARE OF STOCK MARKET? The basic purpose of this question is to know about how many people are aware of the stock market and its activities. 2. 1. NUMBER OF RESPONSES % OF RESPONSES YES 50 100 NO 0 0 TOTAL 50 100 RESPONSES Analysis:This graph shows that all the 50 individuals were aware of stock market. So to find the solution of the problem data analysis and interpretation is must.

3. 40 individuals were aware of demat account.The basic purpose of this question is to know about awareness of demat account among respondents. NUMBER OF RESPONSES % OF RESPONSES YES 40 80 NO 10 20 50 100 RESPONSES TOTAL Analysis:The above table clearly shows that from a sample size of 50 respondents. DURATION FOR WHICH INVESTOR HAS BEEN TRANSACT IN THE STOCK EXCHANGE 70 .

DURATION NUMBER OF RESPONSES % OF RESPONSES [ LESS THAN 1 YEAR 20 40 1 YEAR 5 10 2 YEAR 10 20 15 30 50 100 MORE THAN 2YEAR TOTAL 40 35 30 25 20 15 10 5 0 Analysis:The above table clearly shows that from a sample size of 50 respondents.FREQUENTLY OR OCCASIONALLY? 71 . 4. DO YOU TRADE.The purpose of this question is to know about the duration for which investor has been transact in stock exchange. 15 have been trading in the stock exchange for more than 2 years. 10 investors were trading for 2 years and remaining 25 for one year or less than a year.

This purpose of this question is to find out how many persons trade
frequently or occasionally.

% OF











Analysis:This chart shows that 30 individuals trade occasionally and 20 individuals
trade frequently.


The purpose of this question is to know about which type of scripts the
respondents have.

% OF











Analysis:Above graph shows that many individuals have dematerialized scripts and
some have physical scripts.




% OF










purpose of this question is to know about how many persons are
interested to convert their shares electronically.


ARE YOU SATISFIED WITH DEMAT SERVICE PROVIDER? The purpose of this question is know satisfaction about demat service provider. 7. NUMBER OF RESPONSES % OF RESPONSES YES 45 90 NO 5 10 50 100 RESPONSES TOTAL 75 .Analysis:This chart shows that 30 individuals wanted to convert their shares electronically and rest were not.

Analysis:This graph shows that most of the people were satisfied with demat service provider. NUMBER OF RESPONSES % OF RESPONS ES 10 20 OTHER TYPE OF PROBLEM 20 40 NO PROBLEM 20 40 50 100 PROBLEMS NO TRANSFER OR BAD DELIVERY OF SHARES TOTAL 76 . PROBLEMS BEING FACED BY THE RESPONDENTS RELATING TO TRADING This question tells us about the type of problems faced by the respondents. 8.

Nearly 10 respondents faced problems due to non-transfer and bad delivery of shares. Because of many sick companies being listed in the stock exchange. Why do you like Your Securities In Electronic form Chart Title Axis Title 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Interpretation In above chart showing 92% people for security reason they are investing dmat form and 89% people for flexibility in dmat account buying and selling is easy to trade 97% people telling easy way to buy sell securities 77 . the problem of non-receipt of dividend can be found among 7 investors. There were 20 persons who were facing other problems.Analysis:From the above chart we can see that 20 investors faced no problem due to the introduction of DEMAT. 9.

production of PAN card in original at the time of opening of account has been made mandatory effective from April 1. The account opening form must be supported by copies of any one of the approved documents to serve as proof of identity (POI) and proof of address (POA) as specified by SEBI. Besides.10. Do you know Rules and Regulation of D-mat account Chart Title 100% 90% 80% 70% 60% Axis Title 50% 40% 30% 20% 10% 0% PAN Card SBTS Adress Proof Bank Account Steps involved in opening a demat account First an investor has to approach a DP and fill up an account opening form. 2012 in above chart 55 people not aware of pan card is mandatory for d—mat account 78 .

though the Stock Holding Corporation offers a lifetime account opening fee. The fee also differs based on the kind of transaction (buying or selling). do not have one. This fee is refundable This is also known as folio maintenance charges. But most players levy this when you re-open a demat account. While some DPs. and is generally levied in advance The transaction fee is charged for crediting/debiting securities to and from the account on a monthly basis. However. Private banks. service tax is also charged by the DPs. HDFC Bank and ICICI Bank peg the fee to the transaction value. In addition. Some DPs charge only for debiting the securities while others charge for both. subject to a minimum amount. charge a flat fee per transaction. such as SBI. Karvy Consultants Bajaj capital limited and the State Bank of India to do so.Do you Aware of D-mat Account Charges Chart Title Axis Title 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Depending on the DP.11. which allows you to hold on to your demat account over a long period. players such as ICICI Bank. there may or may not be an opening account fee. 79 . The DPs also charge if your instruction to buy/sell fails or is rejected. Globe Capital. such as HDFC Bank and AXIS Bank.

Please specify reasons D-mat Account With This Company Chart Title Axis Title 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Most people satisfied with 84% good and only 10% people telling services are bad brokerage also very good 60% telling company need to change the transparency way 80 .12.

001-100000 58 C is Your Turnover in D-mat account ? Turnover A 10.000 32 B 50.001-above 10 Chart Title Turnover A B C 81 .

3 A. 22 Brokerage. 75 82 .14.001-above 3 B.001-10.000 22 C 10.How much you are generating brokerage per day in your d-mat account ? Brokerage A 1000-5000 75 B 5.

& only 8% investors have invested in commodities.. where you have invested? a) Futures c) Commodities b) Options d) Others Futures Commodities Others Total Missing Total where you have invested? Percent 12 8 28 48 52 100 Valid Percent 25 16.67 58. 12% investors have invested in Futures.] 83 .33 100 where you have invested? If yes then where you have invested? Futures Commodities Others Total Missing Graph 15: if yes then where you have invested? Interpretation: Out of 50 Investors [Majority of investors has invested in others.15.

] 84 .16. Which type of Investment do you prefer? a) Bank Deposit b) Stock Market c) Commodities d) Real Estate e) Insurance f) Others Type of Investment respondents Prefer Frequency Percent Valid Percent 56 56 Bank Deposit 26 26 Stock Market 2 2 Real Estate 8 8 Insurance 8 8 Others 100 100 Total Type of Investment Investors Prefer 8% 8% 2% Bank Depost Stock Market Real Estate 26% 56% Insurance others Graph-: Type of Investment Investors Prefer Interpretation: Out of 100 Investors [Majority of investors invest still in bank & later followed by Stock market. investors still consider banks as a safe way to invest & were the returns are assured when compared to stock market because of its recent fluctuation. global meltdown etc.

7% Capital market Derivatives.17. investors still consider banks as a safe way to invest & were the returns are assured when compared to stock market because of its recent fluctuation. global meltdown etc.] 85 .in which segment you investing or trading? Capital market Derivatives 85 Commodity Market 7 Currency market Derivatives 7 Interstate derivatives 1 Total 100 investing Currency market Derivatives. 85% Majority of investors invest still in bank & later followed by Stock market. 1% Commodity Market . 7% Interstate derivatives.

you are using D-mat account for Intraday Short term Long Term? Intraday 52 Short Term 28 Long Term 20 100 Investing Term Intraday Short Term Long Term 20% 52% 28% 86 .18.

& 2% each take advice from Friends & others while investing in derivatives. From whom do you take advice? a) Brokers c) Friends Brokers Family Friends Others Total Missing Total b) Family d) Others From whom do you take advice? Percent Valid Percent 18 64.19.28 6 21.14 2 7. 6% investors take advice from family.] Do you Aware Any Security Analysis? 87 . the outcome says that Brokers can educate well to the investors while investing in derivatives.42 2 7.14 28 100 72 100 From whom do you take advice? 2% Brokers Family Friends Others Total Missing If yes then from whom do you take advice? Interpretation: Out of 100 Investors [Majority of investors takes advice from brokers.

Fundamental analysis 15 Technical Analysis 9 No Idea 76 Analysis Fundamental analysis Technical Analysis No Idea Above Chart Showing there is no any education about technical analysis major people not aware of security analysi 76% 88 .


Because of many sick companies being listed in the stock exchange. Besides. There were 20 persons who were facing other problems  92% people for security reason they are investing dmat form and 89% people for flexibility in dmat account buying and selling is easy to trade 97% people telling easy way to buy sell securities  Steps involved in opening a demat account First an investor has to approach a DP and fill up an account opening form. and is generally levied in advance SUGGESTIONS AND RECOMMENDATIONS 90 . 10 investors were trading for 2 years and remaining 25 for one year or less than a year  20 investors faced no problem due to the introduction of DEMAT.  clearly shows that from a sample size of 100 respondents. So it can also be possible that investors will rise in near future. 40 individuals were aware of demat account  15 have been trading in the stock exchange for more than 2 years. The account opening form must be supported by copies of any one of the approved documents to serve as proof of identity (POI) and proof of address (POA) as specified by SEBI. production of PAN card in original at the time of opening of account has been made mandatory effective from April 1.FINDING  The major finding of project is 100 individuals were aware of stock market. Nearly 10 respondents faced problems due to non-transfer and bad delivery of shares. the problem of non-receipt of dividend can be found among 7 investors. 2012  in above chart 55 people not aware of pan card is mandatory for d— mat account  This is also known as folio maintenance charges.

So it becomes necessary for the company to take care of these two factors. So company should advertise its services . so that people can be made aware of all the services provided by the company. CONCLUSION 91 .  As far as people preference regarding opening of demat a/c is concerned then they mainly prefer two factors i. As many of the people who dealt in share market are aware of SHIRAM INSIGHT STOCK BROKING LIMITED ’S name but not of its services. service and trust.  Most if the people are not finding any spare time to convert their shares electronically.e. So company should approach to such people at their doorstep to open their demat account.

 This graph shows that most of the people were satisfied with demat service provider. This is possible if continuous contacts are maintained with the customers.  The company can think of tapping the existing demat account holders and provide them enough information on capital market and enable them to trade in the same. This will help the company also to increase their income.  The company has to create and maintain a database of prospective customers from time to time. 92 . to keep track of the people falling in different income levels and their investing patterns. From the above analysis we have come to this conclusion that most of the people are aware of Demat Account and very much interested in screen based trading.


“Business Research Methodology”.in www.sebi.  Zikmund. Seventh Edition. Thompson South Western Publication  Websites Visited www.  Study material of capital market and derivatives market of BCFM.nseindia.BIBLIOGRAPHY  SHIRAM INSIGHT Stock Broking Limited forms for opening depository and trading account.  Study material of capital market and derivatives market of 94 . William G.

How long have you been transacting in the stock exchange? (a) Less than 1 year (c) 2 year (b) 1 year (d) More than 3 year 6. Are you aware of stock market? (a) Yes (b) No 2. Are you aware of DEMAT? (a) Yes (b) No 4. Do you deal in share? (a) Yes (b) No 3. Are you aware of REMAT? (a) Yes (b) No 5. Do you trade frequently or occasionally? (a) Frequently (b) Occasionally 95 .QUESTIONAIRE NAME: _________________________________ CONTACT NUMBER: _________________________________ OCCUPATION: _________________________________ ADDRESS: _________________________________ 1.

7. What type of problems do you centrally face when you trade in securities? (a) Non transfer of shares (b) Other type of problems (c) Bad transfer of shares (d) No Problem 96 . Why you have not dematerialized your script? (a) Lack of awareness (b) Time constraint (c) Liability of changes 10.Are you satisfied with your demat service provider? (a) Yes (b) No 13. In which securities do you trade frequently? (a) Equity (b) Bonds (c) Debentures (d) Futures & Options (e) All 8.On what basis you have taken your decisions of opening of demat A/c? (a) Service (b) Changes (c) Convenience 12. Which type of script you have? (a) Physical (b) Dematerialized 9.Do you like to convert your shares electronically? (a) Yes (b) No 11.