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CHAPTER-1

EXECUTIVE SUMMARY
This program is like a window to corporate world. The company
provided this platform where we get the ample opportunities to learn
more about life, skill and implement them.

The security markets are in the process of an ongoing revolution, as


evidenced by the internationalization of trading, introduction of a variety
of instruments, and from improved communication abilities.

INVESTMENT MANAGEMENT: Securities Analysis and portfolio


management describes techniques, Finance vehicles, and strategies for
planning, Implementing, and overseeing the optimal allocation of the
funds of and investor(s) or an institution(s) in the changing investment
environment.
Stock Holding Corporation of India Ltd. (SHCIL) was promoted by the
public financial institutions and incorporated as a limited company on
July 28, 1986. SHCIL provides post trading and custodial services to
institutional services and mutual funds, banks, insurance companies and
retail investors. SHCIL is also India’s largest depository participant
providing depository services to a large number of clients. SHCIL has
203 offices/facilitation centers across the country.
SHCIL has received “No Action Letter” from the securities exchange
commission, USA under section 17(f) of the US Investment Company

Act, 1940 and rule 17f-5 framed there under, which enables it to grow at
custodial and related services to US-based funds as well. With the
introduction of depository system in the country, SHCIL commenced
offering depository related services to the retail segment and over the
last few years, it has come to acquire the stature of being one of the
largest depository participants besides being the country’s largest
custodial.

This project is divided into three sections:-

 Section A consists of Introduction and profile of the company.


 Section B consists of analysis and project of SHCIL.
 Section C deals with suggestion and conclusion.
INTRODUCTION
Stock Holding Corporation of India Ltd. (SHCIL) was promoted by the
public financial institutions and incorporated as a limited company on
July 28, 1986. SHCIL provides post trading and custodial services to
institutional services and mutual funds, banks, insurance companies and
retail investors. SHCIL is also India’s largest depository participant
providing depository services to a large number of clients. SHCIL has
203 offices/facilitation centers across the country. It is owned by the
India's leading Banks and Financial Institutions such as:

Industrial Development Bank of India (IDBI)

Industrial Credit and Investment Corporation of India (ICICI)

Specified Undertaking of the Unit Trust of India (SU-UTI)

Industrial Finance Corporation of India (IFCI)

Life insurance Corporation of India (LIC)

General insurance Corporation of India (GIC)

New India Assurance Company Limited (NIA)

National Insurance Corporation Limited (NIC)

United India Insurance Corporation Limited (UIC)


HISTORY
HISTORY OF PROMOTERS AND COMPANY
Stock Holding Corporation of India Ltd. was incorporated at the special
initiative of Government of India, as a public limited company as per the
Companies Act, 1956, in the year 1986, to take up the specialized
activity of providing world class custodial services in India.
After Harshad Mehta SCAM SHCIL was
endowed with the responsibility of dematerialization of securities to
avoid any such mis-endeavour by any individual and entity in future and
SHCIL was critical in stream lining of share market.

With the introduction of the depository system in the country, SHCIL


commenced offering depository related services to the retail segment
and over the last few years, it has come to acquire the stature of being
one of the largest Depository Participants, besides being the country’s
largest and premier custodian. It is owned by the India’s leading Banks
and Financial Institutions such as:

IDBI Bank ICICI Bank

SU-UTI IFCI Ltd

LIC GIC

NIA NIC

UIC TOICL
COMPANY OVERVIEW
Stock Holding Corporation of India Limited provides custodial, post
trading, and depository participant services in India including DP
services for disinvestment of various PSU’s. It offers securities services,
such as custodial, clearing and settlement, electronic and physical
safekeeping, F&O clearing, asset servicing, and premium offerings; and
depository participant services, including account opening, modification
of client’s details processing settlement and non-settlement related
transactions, execution of pledge instructions, and demat of securities.
The company also provides e-stamping, share broking, and collateral
and risk management services. In addition, it offers various financial
products ranging from fixed income investments, such as FDs, bonds,
debentures, and capital gain bonds to variable income products,
including initial public offerings (IPOs) of equities and mutual funds;
life insurance services; IPO services; loans against securities; GOI
bonds; and western union money transfer services. E-stamping The
company serves financial institutions, insurance companies, mutual
funds, foreign institutional investors, banks, Indian and foreign venture
capital companies, foreign venture capital companies, funds, PF trusts,
and corporates. It operates a network of 203 offices/facilitation centers.
Stock Holding Corporation of India Limited was incorporated in 1986
and is based in Mumbai, India.
CHAPTER-2
REGISTERED OFFICE:
Mittal Court, ‘B’ Wing, Second floor,

224, Nariman Point, Mumbai- 400021.

NAME AND DESCRIPTION OF PROMOTERS:


SHCIL has been jointly promoted and is owned by the all India
Financial Institutions namely:

 Industrial Development Bank of India (IDBI)


 Industrial Credit and Investment Corporation of India (ICICI)
 Specified Undertaking of the Unit Trust of India (SU-UTI)
 Industrial Finance Corporation of India (IFCI)
 Life insurance Corporation of India (LIC)
 General insurance Corporation of India (GIC)
OBJECTIVE OF COMPANY
To maintain the position of market leader in various financial products
and services offered by Stock Holding Corporation of India Ltd.

MISSION
To be a world class-class ‘technology has driven’ and ‘client focused’
market leader in financial and technical services.

VISION
To be market leader with the help of IT driven services and technology
based wider product range.

STRATEGY
Embracing most advanced next generation technology and providing
better financial service solute
SHCIL BOARD OF DIRECTORS
BOARD OF DIRECTORS Sanjeev Ghai

S C Jain

S. Viswanathan

N. Balasubramanian

G. M. Ramamurthy

Anup Bagchi

Siby Antony

A. R. Sekar

 Director R K Bansal Wholetime


 Company Secretary Shashikant L Nayak
 Statutory Auditors M/s. Kalyaniwalla & Mistry
 Internal Auditors M/s. Sridhar & Santhanam
 System Auditors M/s. AAA Technology Pvt. Ltd

M/s. Miel-e Securities Pvt. Ltd.


CURRENT MANAGEMENT TEAM
Director R K Bansal Wholetime

Executive Vice President R H Mewawala

Executive Vice President L Viswanathan

Sr. Vice President K S Iyenger

Sr. Vice President Manoj Borkar

Sr. Vice President J S Narang

Sr. Vice President Jaipal Menon

Sr. Vice President Dinesh Shah

Vice President S M Sawant

Vice President Umesh Punde

Vice President K V Ganapathy

Vice President V Sriram

Vice President B. Krishna Moorthy

Regional Managers Region

D. R. K Jagannath AP & Goa


Latika Roy South Karnataka

S. Radhakrishnan South 2

Umesh Punde Maharashtra

Prabhat Dubey Gujarat

Meena Pednekar Mumbai

Ajay Sharma North West

Amit Dassi North

Arup Bagchi East

R. Ravikumar North East

R. Anand Central
CHAPTER-3
PRODUCTS OFFERED BY SHCIL
(A) ADD SHARES
SHCIL arranges loan against DEMAT shares. Tie-up
with reputed banks which offer you the most
Competitive interest rates in the market. You can use
the shares in your free account as collateral and take a
loan from any of our empanelled banks. SHCIL
completes your documentation and processing and
gives you a cheque within 48 hours of application. This
is a pure value add to your depository account with us.
Add shares are available at SHCIL centers in the entire
major Cities.

Feature:-
 Loan against DEMAT shares held in the DP account with

SHCIL.

 Competitive interest rates from a range of banks SHCIL has

Tied up with.

 SHCIL processes the entire paperwork required with the Bank.


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

(B) EQUIBUY:-
Even after payments have been made we have to wait
patiently to see those shares reflected in the DEMAT
account. With the odd surprise of not seeing them at all
which you cannot discount!

As your depository participant SHCIL assures you safe


delivery of shares every time you buy on the exchange. We
have lined up a panel of reputed brokers who process your
orders on priority.

Our positions as the clearing corporations of leading stock

Exchanges ensure smooth and sure credits in your account.

An initial advance and timely replenishments into the


purchase
Advance account takes care of the payment for your
purchases.
Go through the detailed EQUIBUY procedure and you will
see how EQUIBUY in a one stop shop for your share
purchases.

FEATURES :-

 An EQUIBUY instruction from you gets the shares credited into


your account the next day of payout.
 Payment for your purchase made from a running account called
purchase advance into which you remit an initial advance of Rs.
1000 and maintain a minimum balance of Rs 250 at all times.
 Choose one or more brokers from a list of 77 brokers empanelled
with SHCIL. Registration with broker is not necessary if you are
already registered under any of our other product schemes.
 Purchase on BSE or NSE.

(C) FUND INVESTMENT


Fund invest is a basket of financial products
ranging from fixed income securities like fixed
deposits, infrastructure bonds and capital gain
bonds to variable income securities like initial
public offers (IPOs) of equities and mutual funds.
It is an attempt to offer financial products that that
cater to the various investment needs of our
esteemed clients. An effort to guide the investor to
a product portfolio that best suits his risk-return
profile. Applications for investments can be
sourced from any of the SHCIL offices. Apart
from guiding our investors to pick up the right
combination of investment instruments we help
them in ‘after-sales’ service by acting as an
interlocutor between the investor and the issuer of
the securities. SHCIL is an AMFI registered
mutual fund advisor (ARMFA).

FEATURES:-
At present, SHCIL is distributing schemes of 28 different
mutual funds. All these funds offer a wide variety of investment option
depending on the risk appetite of the investor. Some of the major
categories are:

 Debt funds: The debt funds have the mandate of investing


primarily in debt papers.
 Equity funds: The equity funds have the mandate of investing
primarily in equities.
 Balanced funds: The balanced funds have the mandate of
investing both in equities as well as debt papers.
 Capital gain bonds come under 54EC capital gains bonds, where
the investors get exemption from capital gain tax. These are ‘on-
tap’ issues. At present, SHCIL is distributing capital gain bonds of
rural electrification corporation, national housing bank, small
industries development bank of India and national highway
Authority of India. Infrastructures bonds are issued by ICICI bank
and IDBI, with section 88 as the main feature.
 Private placements: debt papers issued for private placement with
structural obligations by the state and central government typically
targeted for trusts and provident funds are distributed by stock
holding.
 Fixed deposits: fixed deposits with high investment rating and
issued by blue-chip corporate are distributed by us. These papers
generally offer 50 to 100 basis points more than bank fixed
deposits of comparable period. At present, we are distributing
IDBI SUVIDHA fixed deposits and HDFC fixed deposits.
 Initial Public Offer: IPOs offered by blue-chip corporate can be
subscribed from stock holding. Issues recently distributed by us
are Canara Bank, Allahabad Bank, Bharti Tele and I-Flex
(D) GOI BONDS:-
Savings bonds are issued by RBI on behalf of
government of India in the following series:

8.0% taxable bonds: These bonds are held in


electronic form in an account called bond ledger
account (BLA). Bond ledger accounts can be
opened and operated with RBI designated
receiving offices. SHCIL has been designated as
one of the receiving offices by RBI for this
purpose. Subscriptions for savings bonds can be
submitted at any of our branches.

Savings bonds being sovereign in nature are


absolutely safe and an attractive investment
option in the current volatile market situation.

Feature:-

 Investment Limit: Minimum investment is Rs.1000 and there is no


maximum limit Interest Option Payable half yearly on 1st Feb, 1st
Aug or cumulative on maturity.
 Tax Benefits Interest is taxable under IT Act 1961. Exempt from
Wealth Tax under Wealth Tax Act 1957
 Transferability Non-transferable, non-tradable and cannot be used
as collateral for borrowings
 Nomination Available. Only sole holder or surviving holder can
nominate
 Repayment: Repayable on expiry of 6 years from date of issue. No
interest would accrue after maturity

(E) INSURANCE
SHCIL, a company promoted by insurance majors
and financial institutions, is a corporate agent of LIC
for life insurance products and NIA for general
insurance products. SHCIL has a dedicated team of
IRDA certified insurance advisors to provide all
services relating to insurance. We also provide free
professional advice to clients on need base insurance.
SHCIL has 100 odd branches all over India to take care
of all your insurance related queries and needs.

FEATURES

 An insurance policy compensates you against the financial impact


that can arise following loss, damage of destruction of your
property (such as home or vehicle) or your health or life.
 A fundamental principle of insurance is to put you in the same
financial position after a loss or accident that you enjoyed before
the loss. This is relatively easy with repair or replacement of (say)
a car, but is much more difficult with the loss of life. The insurance
policy is a contract and like any contract contains clauses and
conditions. Claims are settled in accordance with the conditions
detailed in the policy.

(F) STOCK DIRECT:-


From your desktop you can now send instructions
for buying/selling shares. A three way hands
shake between leading brokers, national and
international banks and Stock direct has changed
the way you look at trading in securities. SHCIL
is the crux of stock direct.

Stock direct – India’s first online trading platform


was launched in 1999. Today stock direct is the
most secure online trading platform which
combines encryption technology/digital signature
features. A few clicks will seamlessly check your
funds and security positions, route the order to the
broker of your choice and do the necessary fund
and share movements for you.
FEATURES:-

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


shares transfer with SHCIL taking care of the settlement.
 Trade from home on the internet with floppy containing stock
direct software.
 Security measures based on encryption and digital signature
technology make your online deals 100% secure.
 Open a purchase advance account with SHCIL to facilitate your
fund transfers.
 Choose the exchange to trade from BSE and NSE.

(G) PENSION FUNDS:-


SHCIL offers pension fund administration
services to pension fund trusts. The pension fund
scheme administered by the trust could be a
defined benefit or a defined contribution scheme.
For both the scheme types, SHCIL offers the
entire range of services that include design,
development and maintenance of a customized
pension

FEATURES :-
 Services Offered to a Defined Contribution Scheme Coordination
with all client locations/branches for receipt of monthly
contribution data of members.
 Pension contribution account maintained at individual member
level.
 Reconciling contributions with remittance amounts.
 Settling members claim on separation.
 Liaoning with insurer for purchase of annuity.
 Handling disbursements to members on commutation.
 Distribution of earnings to eligible members, annually.
 Providing account statement to members annually.
 Maintain books of accounts of the trust.
 Handling audit and filing tax returns.
 Services offered to a defined benefit scheme
 Service records of members maintained in electronic form.
 System generated pension orders, uniquely referenced and
supported by necessary documents.
 Tracking pension orders during the period of survival of member.
 Updating of software to incorporate changes taking from time to
time in pension rules and regulations.
CHAPTER-4
SERVICES OFFERED BY SHCIL
(A) CUSTODIAL SERVICES:
SHCIL provides first-rate custodial services
to India’s leading Financial Institutions,
Insurance Companies, Mutual Funds,
Foreign Institutional Investors (FII’s),
Banks, Indian and Foreign Venture Capital
Companies, Funds, PF Trusts & Corporate.
SHCIL,s core competence in custodial
business spans 18 years, with a dedicated
pool of trained and experienced
professionals working literally round the
clock using state-of-the-art computer
systems and world class technology. SHCIL
maintains dedicated communication
channels, well connected to client
institutions, stock exchanges, clearing
houses and depositories, thus maintaining
process and quality leadership.
As a custodian entrusted with sizable assets,
SHCIL is continuously leveraging its scale
and capabilities to help its clients mitigate
risk and optimize efficiencies with greater
control.

(1)POST TRADING SERVICES

SHCIL has specially trained personnel


handling thousands of trade instructions
involving large values on sophisticated
systems using digital signature on STP (straight
through processing) systems, ensuring smooth
trade confirmations to stock exchanges.
SHCIL provides the choice of multiple STP
service provides enabling competitive
advantage of efficient settlements. SHCIL
seamlessly monitors trades and ensures
failed trade management with reporting and
resolution of mismatches, etc. At SHCIL, a
client has the flexibility of settlement of
funds through a wide panel of banks having
RTGS facility.
(2)SETTLEMENT SERVICES

Most of the institutional trades are settled


through the clearing house of the stock
exchanges. As a custodian, SHCIL
facilitates timely settlement of funds and
securities. Funds are collected /deposited
From/to client and settled with the clearing
houses. Most of the institutional trades are
settled in the depository mode. For the
institutional segment alone, SHCIL has a
unique clearing code on the two principal
stock exchanges and separate DPM units on
both NSDL and CDSL. This ensures smooth
settlement of transactions on both
exchanges/depositories, based on the
deliverables and receivables received by
them for each settlement. Daily verification
of settlements (auction/normal) facilitates
smooth reconciliation of settlements of
client’s trades and mitigates systemic risk.
For debt market deals SHCIL ensures timely
movement of securities and funds.
For the occasional delivery and receipt of
securities in the physical mode, SHCIL
ensures prompt scrutiny, processing and
lodgment of securities with the respective
company/ registrar and transfer agent, with

The objective of final transfer to the


purchaser, with objections handling if
needed. SHCIL also ensures that delivery of
physical securities to exchanges is handled
strictly as per exchange regulations.

(3)PHYSICAL CUSTODY (VAULT) SERVICES:

SHCIL has extensive vault capacity with


state-of-the-art technology. This includes
tracking with bar-coding techniques.
Certificates are held in customized, fire
resistant ‘modular sliding storage units’,
with automated location tracking and logs
with tight security.
There are comprehensive document tracking
and storage systems in place to hold
investments in physical and electronic form.
SHCIL tracks each and every security in the
custody with absolute ease and tracks the
status of investments at any point of time.
Other security features include circuit TV,
smoke detectors and fire extinguishers
which are installed in the premises.

SHCIL relies on audit trials and physical


reconciliation continuously to reconfirm
validity of systemic data. SHCIL also
periodically seeks reconfirmations from
internal and statutory audit firms for
adherence to the established best practices.
(4)DP SERVICES:

SHCIL has installed dedicated DPMs


(depository participant modules) on both the
depositories, viz. NSDL and CDSL.

A dedicated institutional DP team at


SHCIL addresses your need for all core DP
services like account opening and
maintenance, conversion of physical
holdings into electronic form, settlement of
trade instructions, re-materialization,
repurchase and pledge instructions,
providing of holding and transaction
statements and daily reconciliation of clients
holdings.
SHCIL also provides special services like
electronic credit and corporate action follow
up, reporting of saleable holding positions
required by many fund managers,
monitoring of CP redemptions, prepayments
and providing customized reports like
put/call forecasts, logical holdings and non-
equity holding reports.
(5)ASSET SERVICING:

SHCIL has dedicated teams to handle the various aspects


of asset servicing. The corporate actions team ensures
forecast of all corporate actions and benefits accruing on
a client’s holding, timely collection of monetary and non-
monetary benefits and cover all activities relating to a
corporate event like calculation of entitlements,
reconciling with companies/registrars prior to due date,
collection of monetary corporate actions from the
premises of company/registrar and transfer of same to
clients. In case of any shortage, active follow-up with
each company. Customized reporting to clients on the
status of corporate actions is done periodically.
The primary markets team takes care of applications on
behalf of clients for primary market issues, calculates the
entitlements, follows up for allotment or refunds and
sends customized reports to clients.

The dedicated redemptions team tracks the payouts of


various debt instruments held by SHCIL’s clients and
monitors put/call options. This team ensures timely
monetary collection and deposits and keeps track of the
outstanding amounts and reinvestments.

Specialized ‘Databank’ team, which is unique to SHCIL.


This team tracks over 8500 companies, over 12000
issued securities, 2500 registrars besides all relevant
information available in all leading stock exchanges and
depositories. The team ensures prompt availability of
information on all corporate announcements, ISIN
listings, etc. to the custodial teams and the information
solely is for the benefit of SHCIL’s clients.

Thus SHCIL is equipped to handle all types of


instruments, listed on the BSE and NSE, money market
instruments like CPs and CDs, all kind of debt
instruments and unlisted securities.
(B) DEPOSITORY PARTICIPANT SERVICES:
Our depository participant services address your
individual investment needs. With a parentage of
leading financial institutions and insurance majors
and a proven track record in the custodian
business, we have reiterated our past success by
establishing ourselves as the first ever and largest
depository participant in India.
Form a tentative foray in 1998 into the individual
investor arena to servicing around seven lakhs
accounts, we have endeavored to constantly add
and innovate to make business a pleasure for you.
Our networked branches ensure we are available
where you look out for us. Fourteen depository
Participant machines (DPMs) connected to NSDL
and seven connected to CDSL ensure fast and
direct processing of your instructions.
Our customer-centric account schemes have been
designed keeping in mind the investment psyche
of our clients. Your DP account with us takes care
of your depository needs like dematerialization,
re-materialization and pledging of shares.
Matching of your scanned signature on every
debit instruction with a digitally scanned original
in our system makes all your trading transactions
absolutely secure. A proactive backup of tour
instructions prior to execution in the depository
makes us oblivious to system crashes.
At SHCIL we place a very high premium on client
reporting. Periodic statements sent to you keep
you informed of your current account status.
Dedicated customer care lines manned by trained
staff answer your queries on
DEMAT/trades/holdings. The latest in client
response at SHCIL is Interactive Voice Response
(IVR) system for round the system for round the
clock information on your account. Registration
on our website, SHCIL interactive, enables you to
check your account – related information, stock
market reports and statistics, corporate benefits
declared by companies, real-time quotes of scrip’s
on BSE and NSE and so much more online.
(C) DEMAT:

De-materialization is the process of conversion of


shares from physical form to the electronic mode.
Our dedicated DEMAT team enable you to
convert your physical
holdings/debentures/bonds/G-SECS into
electronic mode in a quick and hassle free
manner.

(1)TRANSPOSITION CUM DEMATERIALIZATION

The clients can get the securities dematerialized in


the same account if the names appearing on the
certificates match with the names in the DEMAT
account but are in different order. This can be
done by submitting the certificates along with the
transposition form and the dematerialization
request form (DRF).
(2)TRANSMISSION AND DEMATERIALIZATION
In case of death of one or more of the joint
folders, the surviving holder(s) can get the
name(s) of the deceased deleted from the security
certificate and get the same dematerialized.

Notarized copy of the death certificate,


transmission form as per annexure OB and the
dematerialization request form (DRF) have to be
submitted by the surviving joint holder(s) along
with the security certificates.

(D) DERIVATIVE SERVICES:


SHCIL provides clearing services for derivative
segment of BSE/NSE and commodity segment of
MCX / NCDEX.
(E) CLEARING MEMBER
SHCIL’s long standing association with clearing
members has enabled it to develop services based
on an understanding of their working and their
requirement for timely and accurate information.
We accept deposits of base capital and additional
base capital requirements stipulated by NSE for
clearing members trading on its capital market
segment. Besides, our new products with a broker
empanelment clause ensure a mutually beneficial
tie-up. Clearing members stand to earn a steady
income from our product transactions and new
add to their client base, while we capitalize on
their rapports with the market.

We currently offer depository services to more


than 680 clearing members of various exchanges
connected with NSDL and CDSL. Our customer
care lines answer all your DP queries while the
Interactive Voice Response (IVR) system gives
you information on your account and other
valuable data like CC calendar details, tariff, ISIN
information, etc. via telephone, fax and e-mail.

(F) NRI:
Over the years, SHCIL has grown to become a
major player in the capital market. With a network
of offices operating across the country with
franchisees operating abroad, SHCIL provides
depository participant and other services close to
0.7 million satisfied investors out of which over
6000 are NRI clientele.

SHCIL has a fully-fledged NRI cell operating


specifically to cater needs pertaining to depository
account opening and maintenance. NRI cell
coordinates with prospective NRI customers,
Collects and assist in obtaining the relevant
documents and ensures the depository account is
opened hassle free.

NRI cell collects physical certificates to be sent


for DEMAT and ensure that the certificates are in
order and can be sent for dematerialization under
the existing guidelines issued by the depositories.
Instruction for trade is accepted by fax on request
by NRI cell to ensure timely settlement of trades.
In this case later on the client needs to regularize
by sending the original trade delivery instruction.
Any tariff and billing related query are addressed
by NRI cell.
Chapter-5

SWOT ANALYSIS
STRENGTH WEAKNESS

1. Wide coverage throughout the 1. Lack of aggressive marketing.


country. 2. Improper billings.
2. Promoted by 7 financial 3. Expensive.
Institutions. (Because separate account has to
3. Largest account holders. be opened according to holdings).
4. Largest custodian. 4. Less investment in advertising
5. Catering to Indians as well as
NRIs and FIIs.
6. One stop shop for all financial
solutions.
7. Advanced system network
OPPURTUNITIES THREAT
1. E – Broking. 1. Promoters have become
2. Acquisition of smaller DPs. competitors with strong brand
3. Collaboration with banks. equity.
4. New products 2. Increased cost as perceived by
customers.
3. Fluctuating market conditions
affect the business.
4. To increase business (by
opening new branches at rural-
urban areas).
STRENGTHS:
1.LARGEST DEPOSITPORY PARTICIPANT:
SHCIL is at the No. 1 position as depositor
participant in all over India. Being a premier
custodian SHCIL is currently holding more than
20 million certificates in etude as the largest
custodian. SHCIL accounts for more than 50% of
institutional business in the country.

2.BACK OFFICE SERVER :

For perfection in work SHCIL has back office


server facility where all the branches of SHCIL
meet their necessary requirements before any
information takes place with the NSDL.

3.EXPERIENCE:
Stock holding is the oldest organization in
custodian business all over India and it has more
than 10 years of experience in the field. SHCIL
has excellent management and technocrat’s team
to handle workloads and provides the best of
services to its customers.
4. PROMOTED BY FINANCIAL INSTITUTIONS:
SHCIL is promoted by all the major financial
institutions in India, i.e.

 Industrial development bank of India.


 Life insurance Corporation of India.
 Oriental insurance co. ltd.
 Industrial credit and Investment Corporation of
India.
 New India insurance corporation ltd.
 National insurance corporation ltd.
 United India insurance co. ltd.
 It has professionals on its board to look after the
business and meet its current and future
requirements in the market.

(5)NEW PRODUCTS:
SHCIL has offered some new products in the
market like E-stamping to meet the customer
requirement as well as established benchmark.
WEAKNESS:
1. SOME BRANCHES ARE NOT CONNECTED THROUGH

VSAT:
SHCIL is the largest branch network depository
participant in the custodian market but till now
some few of the branches are not yet connected
through the VSAT.

2. LESS ADVERTISEMENT SPILLS:


SHCIL has less advertisement spill compared to
its main competitor like Kodak securities, HDFC,
IDBI bank, and ICICI bank. These are also
producing the facilities of banking services and
other related services to the customers.

OPPO RTUNITIES:
1. LARGE RURAL/SEMI-URBAN ARES ARE
STILL UNEXPLORED:
SHCIL has a growing structure of its branch
network but still our rural and urban areas are not
covered in the process whereby the common man
participates in the growth of the economy.

Therefore it has become necessary to give


attention to our rural and semi-urban sectors
immediately.

2.SELL – N- CASH:
Sell- n- cash is totally a new concept of SHCIL
where an investor can present his share to knell in
the market and can take payment within 48 hours
without delays.

3.MUTUAL FUND MARKETING:


Marketing and distribution of mutual fund is
providing the facility to the customer who do have
the time and the expertise and who are averse to
risk.

4. SGL ACCOUNT:
SHCIL is the first corporation, which got he non –
banking license to dematerialize the government
securities. This enables the institutional investors
to properly use their fund to derive the extra
return from their investment.
5. INSURANCE MARKETING:

Marketing of insurance services recently started


by SHCIL is also a great opportunity available for
its growth. This field can enhance great
opportunities and can alleviate their position in
the market.

THREATS:
1. CHARGES ARE HIGHER:
Indian customers have less money at their
disposal. Since SHCIL is the No.1 in the custodial
sector in the market and for providing the best
services, it has higher charges detrimental for
small investors.

2. TIE UP WITH EXTERNAL AGENCY:


Now day’s tie-ups, M&A are a regular
phenomenon in the market to beat the competition
and create a place for itself. The merger and tie-
ups of financial corporations poses a bigger threat
to SHCIL.

3, PRODUCTS AND SERVICES OF SHCIL


According to the findings first ranking is given to
Demat, second to mutual fund, third to broking
and fourth to insurance. No one knows about e-
stamping as one of the services offered by SHCIL
Chapter-6
WHY SHCIL?
Why customer would choose SHCIL as a preferred Service Provider?
Well integrated front and back office, paper and electronic systems. A
focused Client Relation Team to manage your needs & queries. A single
point contact for your comfort.

In-house capability to address all IT needs in terms of software


development, maintenance, back office processing, database
administration, network maintenance, backups and disaster recovery

Multilevel security is maintained in software, applications and guards to


access to various data, client and internal reports

Expertise in running processes utilizing digital signatures.

Regular Audits internal and external, by SEBI, Depositories, Clients and


Compliance to rules and regulations
Constant review and benchmarking of processes to ensure adherence to
global best practices

Insurance cover with international re-insurance

Full Confidentiality of business operations

VALUES OF SHCIL:-
 Safety & Efficiency of Operations is a hallmark of SHCIL
 Professionalism & Integrity
 Customer First
 Relationship building
 Commitment to Quality irrespective of asset size
CAPITAL STRUCTURE OF SHCIL
Promoter Holding
pattern (%)
Life Insurance Corporation ( LIC) 14.97
Unit Trust Of India (UTI) 16.96

Industrial Development Bank ( IDBI) 16.96


14.95
Generel Insurance Corporation & it’s
Subsidiaries ( GICI )
Industrial Finance Corporation of India 16.96
(IFCI)
ICICI Ltd. ( ICICI Bank) 16.96

Industrial Investment Bank of India ( IIBI) 1.99

Others 0.25
Chapter-7
ANALYSIS
This is the analysis of the survey done by me on the behalf of
the Stock Holding Corporation of India Ltd. to know the
investment pattern and investment psyche of the general public
in Shimla.
There were 112 individuals who were interviewed. This data is
based on the feedback provided by those individuals. The
sample of the individuals was selected from the area of sanjauli,
Cemetery, Dhalli and surroundings.

Under-mentioned were the questions asked from the


individuals.
1) NAME
2) PHONE NUMBER
3) LOCATION
4) ANNUAL INCOME.
5) HAVE YOU INVESTED

6) HOW MUCH YOU HAVE INVSESTED


7) WHERE YOU HAVE INVESTED
8) OTHER INVESTMENT
9) IN WHICH COMPANY YOU HAVE INVESTED
10) HAVE YOU HEARD ABOUT SHCIL?
11) WOULD YOU LIKE TO MAKE INVESTMENT
THROUGH SHCIL IN FUTURE
The following is the analysis of survey:
ANALYSIS - 1
Out of the data only 0.89% of the people were having
income more than 10 laces & 4.46% of the people were
having income from 5 to 10 laces and remaining i.e.
94.65% were having income less than 5 laces.
10 lacs
5-10 lacs
less than 5 lacs

ANALYSIS – 2
There were only 4.46% people who have their
investments between 5-10 laces or there were only 5
people out of 112 who have their investments above 5
laces.
Above 5lacs
Less than 5lacs

ANALYSIS – 3
There are50 .89% or 57 people out of 112 people, who
are interested to make investments through SHCIL in
future, and remaining 38.39% or 43 people who are not
interested to make investments through SHCIL.

How many would like to invest in SHCIL

Like to invest in SHCIL


Not like to invest inSHCIL

ANALYSIS – 4
From the data collected there were 81.25% people who
had made investments and remaining 18.75% haven’t
made any investments?

Invested
Not invested
ANALYSIS -5
There were about 25.00% people who have heard about
SHCIL and 75.00% haven’t heard about SHCIL.

How many people heard about SHCIL

Heard about SHCIL


Not heard about SHCIL
ANALYSIS –6
According to survey maximum of the individuals have
made their investments in insurance products followed
by the mutual funds, stock, and bonds. The investment
made in these products is as follows-
 INSURANCE-92
 MUTUAL FUNDS-21
 STOCK-13
 BONDS-11
Individual Investment

Insurance
Mutual Fund
Stock
Bond
ANALYSIS-As per the survey the most trusted corporate
for the purpose of investment was LIC. About 58% of
the interviewed strata have invested in LIC and others
are as follows-
LIC-58%

ICICI-6%

SBI-21%

PNB-9%

REC-0%

SHCIL-2%

RBI-2%

UTI-3%

GOI-1%

HDFC-8%

AVIVA-4%

MAX-2%

BIRLA-6%

POST OFFICE SAVING-7%


RELIANCE-3%

Others-12%

S.NO Feature Customer View


1 Charges Very high
2 Service Good
3 Promotion Need to invest in promotion
4 Personal touch Satisfactory
5 Reliability Very reliable
6 Speed Good
7 Time management Satisfactory
8 Awareness about SHCIL Less awareness
9 Visit to SHCIL website Quite regular
10 Depository service Good
11 Billing service Unsatisfactory
12 Other service Good
13 Working environment Needs more improvement
14 Dealing of employee Good
with customer
15 Relationship between Good
clients and SHCIL
Chapter-8

CUSTOMERS VIEW REGARDING SHCIL


Chapter-9
CONCLUSION
As the average income of the people living in Shimla is not so high due
to which the people are much tentative to the insurance product than the
other investment opportunities. The investment consciousness in Shimla
is not so high due to which they are not able to make the best use of their
savings.

The investment is limited to very few products. The general tendency of


normal investor is precautious; the investor invests into a limited range
of products. The investor is comfortable only with pristine products. The
investor is more leaned towards long term and safe financial products.
That is why LIC insurance has maximum coverage in this stratum. It
was also found that investment of single investor is also diversified to
other financial products. Many of the investors were invested through
multiple financial products.
Even Stock Holding Corporation of India Ltd. has great appeal in
general masses but still the awareness regarding the Stock Holding
Corporation (SHCIL) is less. However, people trust SHCIL for their
investments.

Chapter-10
DATA BASE SURVEY
S.no NAME Phone No Location Annual Have How Where Other Which Shcil In
Income u Invt. Much Invt. Invt. Comp. vt.
1 Chet Ram Chauhan 9816031504 Cemetary 5-10 lacs yes 5-10 lacs fixed deposit insuranceLIC,SBI,PNB yes yes
2 Kushal Dhalta 9418589370 JubbalLess than 5 lacsyesLess than 5 lacs insuranceBirla sun life no no
3 Lokinder Chauhan 9418057631 CemetaryLess than 5 lacsyesLess than 5 lacs
fixed deposit insurance
Birla sun life,HDFC
no no
4 Mukesh khakta 9459571321 CemetaryLess than 5 lacsno insuranceBirla sun life no no
5 Hitesh Khakta 9418558675 CemetaryLess than 5 lacsyesLess than 5 lacs
fixed deposit insurance
Post Office,LIC,SBI
yes yes
6 Hema 9736177802 CemetaryLess than 5 lacsno yes yes
7 Yaspal thakur 9816156876 CemetaryLess than 5 lacsyes 5-10 lacs fixed deposit insuranceSBI,LIC,RD,Post office
no no
8 Rajinder Chauhan 9805533303 Cemetary 5-10 lacs yesLess than 5 lacs insuranceHDFC,LIC,RD,yes no
9 Amar chand chandel 9418116175 MatianaLess than 5 lacsyesLess than 5 lacs
fixed deposit SBI no no
10 Het Ram Chandel 9418646372 MatianaLess than 5 lacsyesLess than 5 lacs insurance LIC no no
11 Hardev sarta 9418024331 CemetaryLess than 5 lacsyesLess than 5 lacs
fixed deposit Post Office no no
12 Prakesh Dhalta 9459380483 JubbalLess than 5 lacsyesLess than 5 lacsfixed deposit insurance LIC,SBI no no
13 Pravesh Dhalta 9418091892 ShimlaLess than 5 lacsyesLess than 5 lacs insuranceBirla sun life no no
14 Sandeep pantu 9459741382 DhalliLess than 5 lacsyesLess than 5 lacs insurance HDFC no yes
15 Yash metha 9882300777 Sanjauli 5-10 lacs yes 5-10 lacs stock LIC,KARVEY,SUBHYOG bond yes
SANCHAY
yes
16 Rajesh Thakur 981602593 DhalliLess than 5 lacsyesLess than 5 lacs insurance LIC no no
17 Sushil Sharma 9816043555 DhalliLess than 5 lacsyesLess than 5 lacs
fixed deposit insurance
Canara bank,LICno no
18 Shailender Sharma 9882073163 KumarsonLess than 5 lacsyesLess than 5 lacs
fixed depositmutual
HDFC,BIRLA,RELIANCE
fund yes no
19 Rakesh Napak 0177-2645682 TheogLess than 5 lacsyesLess than 5 lacsfixed deposit insurance LIC no yes
20 Vijay Sharma 9459569437 SanjauliLess than 5 lacsyesLess than 5 lacs insurance LIC no yes
21 Priya kushal 9736630160 SanjauliLess than 5 lacsyesLess than 5 lacs insurance LIC no yes
22 Hira singh ghezta 9816201615 CemetaryLess than 5 lacsnoLess than 5 lacs insurance LIC no no
23 Vickey 9418462394 Matiana 5-10 lacs yes 5-10 lacs fixed deposit insuranceLIC,Post office no no
24 Surinder verma 9816521424 DhalliLess than 5 lacsno no no
25 Mast Ram Chauhan 9882063467 MatianaLess than 5 lacsyesLess than 5 lacs insurance LIC yes yes
26 Surat Ram Chauhan 9882180898 Matiana Less than 5nolacs no no
27 Promila Verma 9459979641 Dhalli Less than 5yes
lacs Less than 5 lacs insurance LIC no yes
28 Rakesh Chauhan 9459274503 Matiana Less than 5yes
lacs Less than 5 lacs insurance LIC no yes
29 Naresh Chauhan 9817577262 Matiana Less than 5yes
lacs Less than 5mutual
lacs fund insurance LIC no yes
30 Rakersh Chauhan 9459959020 Matiana Less than 5yes
lacs Less than 5 lacs insurance LIC no yes
31 Vikram Chandel 9459979648 Matiana Less than 5yes
lacs Less than 5bond
lacs ICICI yes no
32 Ruchi 9459979646 Matiana Less than 5yes
lacs Less than 5fixed
lacsdeposit insurance Post Office,LIC,SBI
no no
33 Rajan Verma 9418379688 Sanjauli Less than 5yes
lacs Less than 5 lacs insurance LIC no yes
34 Poonam 9857136572 Sanjauli Less than 5yes
lacs Less than 5mutual
lacs fund stock HDFC,RELIANCE,SBI
yes no
35 Kamla Verma 9418647985 Batta kufarLess than 5nolacs no yes
36 Devi Ram Verma 9459246322 Batta kufarLess than 5nolacs Less than 5mutual
lacs fund UTI yes yes
37 Tara Chand 9459212511 Matiana Less than 5yes
lacs Less than 5fixed
lacsdeposit insurance LIC,RELIANCE no no
38 Shakuntla 9459385145 Matiana Less than 5yes
lacs Less than 5fixed
lacsdeposit insurance LIC,Sindicateno bank,SBI
no
39 Balvinder Chauhan 9459979433 Matiana Less than 5yes
lacs Less than 5 lacs insurance LIC yes no
40 Sarla 9817618028 Matiana Less than 5yes
lacs Less than 5stock
lacs insurance LIC,BAJAJ yesALLIANZ,SBI
yes
41 Subhadra 9857201102 Matiana Less than 5yes
lacs Less than 5stock
lacs insurance SHCIL,LIC,BANK
yes OF yesBADODRA
42 Gyan Thakur 9418048596 Matiana Less than 5yes
lacs Less than 5fixed
lacsdeposit insurance PNB,LIC no yes
43 Sanjeev Thakur 9418127568 Matiana Less than 5yes
lacs Less than 5mutual
lacs fund bond UTI,RBI taxable
yes bonds,LIC,Post
no Of
44 Dinesh 9418658430 Matiana Less than 5yes
lacs Less than 5others
lacs co-operativenobank yes
45 Amit 9857647067 Kotkhai Less than 5yes
lacs Less than 5mutual
lacs fund insurance LIC no no
46 Rita 9459046065 Cemetary Less than 5yes
lacs Less than 5mutual
lacs fund insurance LIC,Axis bank,HDFC
no no
47 Arun 9459032190 Malyana Less than 5yes
lacs Less than 5others
lacs insurance LIC,PNB,Punjab
no and no Sindh bank
48 Arivind 9418901443 Tikkar Less than 5yes
lacs Less than 5 lacs insurance LIC yes yes
49 Bantu 9459036652 Madhol Less than 5yes
lacs Less than 5 lacs insurance Max new york no life yes
50 Deppak 9218868172 Kotkhai Less than 5yes
lacs Less than 5mutual
lacs fund insurance LIC,AVIVA no LIFE INSURANCE,FUT
yes
51 Kaku Bekta 9805506088 New ShimlaLess than 5nolacs no yes
52 Bunny 9459033428 Dhalli Less than 5yes
lacs Less than 5bond
lacs insurance LIC,PNB,IDBI yes yes
53 Bitu 9418215808 Cemetary Less than 5yes
lacs Less than 5fixed
lacsdeposit insurance LIC,Post Office
no no
54 Rajesh Khakta 9418102038 Kotkhai Less than 5nolacs no yes
55 Sweeti Khakta 9418213095 Cemetary Less than 5yes
lacs Less than 5others
lacs insurance Aviva Life Insurance
no yes
India Ltd
56 Chintu 9816177701 Sanjauli Less than 5yes
lacs Less than 5others
lacs SBI yes no
57 Dishu 9459282332 Jubbal Less than 5yes
lacs Less than 5others
lacs SBI no yes
58 Ganga Ram 9816060123 Cemetary Less than 5yes
lacs Less than 5fixed
lacsdeposit insurance Indusland bank,AVIVA
no yes LIFE INSUR
59 Vijay Kumar 9459821673 Theog Less than 5yes
lacs Less than 5mutual
lacs fund stock LIC,ICICI,SBI,Post
no yes
Office
60 Geetu 9816765379 Cemetary Less than 5yes
lacs Less than 5others
lacs PNB no yes
61 Kapil 9816568916 Cemetary Less than 5nolacs no no
62 Baju Ram 9805374059 Sanjauli Less than 5yes
lacs Less than 5mutual
lacs fund stock AVIVA LIFEnoINSURANCE,SAHAR
yes
63 Chamel 9816341907 Sanjauli Less than 5yes
lacs Less than 5mutual
lacs fund insurance ICICI,HDFC,SBP,Axis
no no bank
64 Rajinder Chauhan 9816941179 Cemetary Less than 5nolacs no no
65 Gaurav 9418701300 Cemetary Less than 5yes
lacs Less than 5mutual
lacs fund insurance Kotak Mahindra,SBI
yes yes
66 Gopi Kishan 9817641006 Sanjauli Less than 5yes
lacs Less than 5fixed
lacsdeposit insurance LIC,Canarano bank,Uco
yes bank
67 Hardyal Metha 9805866733 Sheelghat Less than 5yes
lacs Less than 5others
lacs SBI no yes
68 Hans Raj 9857844560 Bagi Less than 5yes
lacs Less than 5 lacs insurance LIC no no
69 Hardik 9418670944 Cemetary Less than 5yes
lacs Less than 5 lacs insurance LIC no no
70 Inder 9816626226 Totu Less than 5yes
lacs Less than 5others
lacs insurance LIC,SBI,HDFC,ICICI
no yes
71 Rajesh 9418171426 Gumma Less than 5yes lacs Less than 5others
lacs insurance LIC,PNB,Oriental
no bank no
72 Lokinder Chauhan 9816187733 Kotkhai Less than 5yes lacs Less than 5others
lacs Axis bank,Oriental
yes yes bank,Canara bank
73 Harish Sathan 9857844858 Kotkhai Less than 5yes lacs Less than 5 lacs insurance LIC yes yes
74 Man Singh Manta 9459581196 Rohru Less than 5yes lacs Less than 5others
lacs insurance LIC,SBI yes no
75 Lakashya 9418040922 Sanjauli Less than 5nolacs no yes
76 Lucky 9459974211 Kotkhai Less than 5yes lacs Less than 5others
lacs insurance ICICI,SBI no yes
77 Mahesh 9736277999 Matiana Less than 5yes lacs Less than 5others
lacs insurance LIC,PNB,UCOyes BANKno
78 Ashish 9816131947 Shimla Less than 5yes lacs Less than 5fixed
lacsdepositinsurance LIC, no yes
79 Mohit 9459747447 Kotkhai Less than 5yes lacs Less than 5 lacs insurance LIC yes no
80 Mohit 9459382808 Batta kufarLess than 5yes
lacs Less than 5 lacs insurance LIC no no
81 Mukesh 9816539775 Tikkar Less than 5yes lacs Less than 5others
lacs insurance LIC no yes
82 Joginder 9418561844 Kotkhai Less than 5yes lacs Less than 5 lacs insurance Max new york
no life yes
83 Prakesh 9418190319 Kotkhai Less than 5yes lacs Less than 5stock
lacs insurance SHCIL,LIC,GOI
yes yes
84 Rajinesh 9418588949 Cemetary Less than 5nolacs no yes
85 Rajinder 8894330029 Nankhari Less than 5yes lacs Less than 5others
lacs insurance LIC no no
86 Rakesh Sharma 9418678867 Cemetary Less than 5yes lacs Less than 5fixed
lacsdepositinsurance LIC,PNB no no
87 Ram Gopal 9418678867 Cemetary Less than 5yes lacs Less than 5 lacs insurance LIC no no
88 Rohit Chauhan 9418121601 Cemetary Less than 5yes lacs Less than 5mutual
lacs fund insurance UTI,LIC,SBIno yes
89 Sanjeev 9805648774 Batta KuffarLess than 5yes
lacs Less than 5bond
lacs insurance RBI,LIC,ICICI,SBI
no yes
90 Sunny 9418249524 Cemetary Less than 5yes lacs Less than 5mutual
lacs fund insurance ICICI,LIC,SBI
no yes
91 Statish 9129005100 Cemetary Less than 5nolacs no yes
92 Shushil 9816432903 Tikkar Less than 5nolacs yes yes
93 Shushil 9459580009 Sanjauli Less than 5yes lacs Less than 5 lacs insurance LIC no yes
94 Sohan Thakur 9805409904 Nearva Less than 5nolacs no yes
95 Suresh 9817165267 Nankhari Less than 5yes lacs Less than 5 lacs insurance LIC yes yes
96 Surinder 9817210803 Shimla Less than 5nolacs no no
97 Vikram Thakur 9816041082 Shimla Less than 5nolacs no yes
98 Bupinder 9418579508 Matiana Less than 5yes lacs Less than 5 lacs insurance LIC no yes
99 Tarun 9418325511 Shimla Less than 5nolacs yes yes
100 Suman 8091497305 Shimla Less than 5yes
lacs Less than 5fixed
lacsdepositinsurance LIC,PNB yes yes
101 Sanju 9882207200 Cemetary Less than 5yes
lacs Less than 5fixed
lacsdeposit SBI no no
102 Ume 9857747179 Totu Less than 5yes
lacs Less than 5fixed
lacsdepositinsurance Bajaj Allianceno no
103 Vickey 9418589859 Cemetary Less than 5nolacs no no
104 Yashpal 9805312759 Kotkhai Less than 5yes
lacs Less than 5stock
lacs insurance Birla sun lifeno no
105 Aashu 9816022140 Sanjauli Less than 5yes
lacs Less than 5 lacs insurance LIC no no
106 Anu 9459960394 Kotkhai Less than 5nolacs no no
107 Yogesh Thakur 9816036603 Kotkhai Less than 5yes
lacs Less than 5fixed
lacsdepositinsurance LIC,PNB no no
108 Pradeep 9418086921 Kotkhai Less than 5yes
lacs Less than 5 lacs insurance Birla sun lifeno no
109 Arvind klanta 9857258693 Jubbal 5-10 lacs yes Less than 5fixed lacsdepositinsurance LIC,AVIVA no no
110 Vijay Sharma 9459972174 Cemetary Less than 5yes
lacs Less than 5 lacs insurance LIC no no
111 Ramesh 9816071964 Jubbal Above 10 lacs
yes 5-10 lacs fixed depositinsurance LIC,HDFC,BAJAJno no
112 Anil Chauhan 9418940957 Cemetary Less than 5yes
lacs Less than 5 lacs insurance LIC,BAJAJ,SBI no no
Chapter-11

BIBLIOGRAPHY
www.onlinestockholding.com
www.sebiindia.com
www.nsdl.com
www.moneycontrol.com
www.investopedia.com
www.shcil.com