QUESTIONNAIRE NO.

1- INVESTOR’S EXPERIENCES REGARDING OPERATIONAL

FRAMEWORK OF DEPOSITORY SYSTEM

1. Do you presently have

All shares in demat form only All shares in paper certificate form

In both form (demat and paper certificate)

2. Out of your present shareholdings, roughly what percent of holdings are in demat form?

Less than 25% 25-50% 50-75% 75-100%

3. If you have not converted all or some of the shareholdings into demat form (Please tick
reasons for this)

(a) High demat charges

(b) No depository service available in your city or town

(c) Companies concerned have not joined the depository system

(d) I don’t fully understand demat system

(e) I am long term shareholder and at present don't need any demat account

(f) I have approached for conversions into demat form but because of one I I
unsolved reason or another, my sharecertificates could not be dematerialised. I I

4. What is your overall comment about 'Operational Framework of Depository System'?

Excellent Very Good Good Average Below Average

5. What is your preference regarding choosing a DP for depository services? (Kindly tick only
one choice)

Broker as DP Bank as DP Custodian as DP Others as DP

6. Have you ever changed or planning to change your demat account with any DP? Yes/No

If yes, what was the reason?

a) High costs charged by early DP

b) Poor standard of services provided by DP

c) Any other reason like________________

 7. Which statement seems to be correct with your personal experiment of operating in a demat
environment?

♦ As an investor, I never had any complaints or grievances against my DP

♦ Complaints made by me as a demat account holder were resolved satisfactorily and timely

♦ Complaints made by me were not resolved at all

♦ Though complaints were resolved but it took a long time

♦ I suffered but did not register my complaint

8. Are you satisfied with SEBI's present role regarding operational

framework of depository system? Satisfied / Not Satisfied

9. Kindly tick the benefits of system.

(You can tick many options )

a) Immediate transfer of securities

b) Increased comfort level

c) Simplified procedures of pledging and lending of securities

d) Reduction in transaction cost

e) Made the security market secured for buyer as well as for seller
due to Delivery vs. Payment system

f) Shortened settlement period to T+2 rolling system

9) Getting rid of enormous paperwork

h) High jump in frequency of securities traded in stock exchange.

□
i) Made it possible to hold all investments in a single account.
□
I) Fast and efficient communication with investors
□
k)

10.
Made securities market highly liquid

a. Have you ever received any non-cash corporate benefit through depository system?
□ Yes/No

b. If yes, are you fully satisfied with corporate benefits availed through depository system? Yes/No

11 . From where did you come to know about depository system first time? (Please tick)

TV channels Newspapers Magazines

Brokers Friends Seminar

12.
i__ I
Have you ever watched any program on TV regarding Investor Education? Yes /No

13. Depositories organise Investor-Depository Meet at regular intervals in

different cities. Have you ever attended any such meeting? Yes/No
 If yes, how beneficial such meetings are?
Very much Somewhat Not much Can't say

If no. why not?

No information regarding such meetings

No interest in attending such meetings

No such meeting was ever held in our city

□
14. Do you recommend these suggestions to make
people educate about the system? Recommended Not Recommended

a) The date of Depository-Investors Meets should be

printed on the statements of demat accounts to be
sent by DPs to investors.

b) Depository-Investors Meets should be made more

interesting, knowledgeable and interactive.

c) Frequency of such meetings should be increased.

d) Meetings should be held in different areas especially

in small cities to attract more and more investors.

15. Who should be entrusted with the task of investor education and awareness?

Govt. Depositories Depository Participants

Brokers Issuers and R&T Agents Self-Education by Investor

16. You buy shares with a view to>

(a) Selling off within the next few days/weeks/months

(b) Holding the shares for some years

(c)

17.
Using any other strategy

Please comment about these statements.

□
a) DP's charges system is very confusing and difficult to understand True / False
b) System is costly for an investor as compared to old system of having True/False
securities in physical mode
 c) System is costly for long term investor who wants to hold shares for True / False
some years
d) System is costly for short-term investor who wants to sell off within True / False
the next few weeks/months

18. Overall comment about charges charged by DPs.

Appropriate Negligible More

□ CZ3- □
19. The system has proved an effective and efficient tool in dealing with the diseases of.

a) Fake and mutilated share certificates Yes / No / Can't say

b) Bad and improper deliveries of securities Yes / No / Can't say
c) delays in registration and transfer of scripts Yes / No / Can't say
d) Fake signatures and signatures mismatches Yes / No / Can't say
e) Delay in receipt of refund orders and allotment letters Yes / No / Can't say
f) Large settlement period for trade done in exchanges Yes / No / Can’t say
9) Less liquidity Yes / No / Can't say
h) Low volume of trade due to hurdles of post trading operations Yes / No / Can't say
i) Problem of selling and buying of odd lots Yes / No / Can't say

20. How much satisfactory you feel about different functions performed by different constitu­
ents' of Depository System?

CONSTITUENTS SATISFACTORY NOT SATISFACTORY CANT SAY

Depository

DPs

Brokers

Companies

21. How the system has effected these areas?

a) Privacy of portfolio of an individual Positive / Negative / No Effect

b) Attraction for newcomers in securities market Positive / Negative / No Effect
c) Investor interested to hold the shares for long time Positive / Negative / No Effect
d) Investor interested in trade in securities Positive / Negative / No Effect
e) A layman who has glamour for market Positive / Negative / No Effect
22. There should be.

a) Investor Protection Act for safeguard of interests of investor Yes / No

b) Investors Charter of Rights to be observed by all market participants Yes / No
 c) Simplicity of Acts related with Investments. Yes / No

d) There should be fix limits and strict rules regarding maximum charges Yes / No
to be taken by DPs from investors

23. Specify any one right you would like to include in your Investors' Charter of Rights.

24. You use Internet based service regarding operating your demat account Yes / No

25. The biggest benefit of operating in the depository environment__________________________

26. Drawback of the present system

27. Kindly specify your suggestion, especially on some topic or point that should be covered in
'Operational Framework of Depository System'.

PERSONAL PARTICULARS:

Name _____

Qualifications _____

Occupation _____

Address _____

Phone number

E-mail

Thanks For Kindly Sparing Your Valuable Time

 QUESTIONNAIRE NO. 2- DEPOSITORY PARTICIPANTS'/ DEPOSITORIES' EXPERIENCES
i REGARDING OPERATIONAL FRAMEWORK OF DEPOSITORY SYSTEM

Q1. DP business is a by-product of secondary market operational reforms. How effectively the
system has been implemented in India?

Very effectively Effectively Not effectively Less effectively

Q2. Kindly tick the benefits of system.

(You can tick many options )
......
a) Immediate transfer of securities
VMMWi

b) Increased comfort level

c) Simplified procedures of pledging and lending of securities

d) Reduction in transaction cost

e) Made the security market secured for buyer as well as for seller
due to Delivery vs. Payment system
f) Shortened settlement period to T+2 rolling system

g) Getting rid of enormous paperwork

h)

i)
High jump in frequency of securities traded in stock exchange.

Made it possible to hold all investments in a single account.

□
j) Fast and efficient communication with investors

k) Made securities market highly liquid

Q3 DPs are lifelines and nerves of Depository. Which statements seem to be correct regarding
DP-business in India?

a) This business faces strict regulations by Depository as well as by SEBI True / False
b) Number of DPs is increasing at high rate True / False
c) Business is getting centralised in hands of some big business houses True/False
d) No drastic increase in number of clients/ investors True/False
e) Business is not much profitable True / False
0 High expectations of investors regarding service standards True/False
g) Limited presence of DPs only in big cities True / False
Q.4 The number of investors joining the system is increasing but at a very slow rate. What can
be the reasons for not joining the system by all the investors?
Yes No
a) Due to charges of demat operations

b) People are not fully educated and aware about the system.

c) DPs have limited presence restricted to big cities only

d) Large number of companies have not joined depository system

e) Due to unresolved issues pending with companies regarding
dematerialisation □ □
f) Any other reason, kindly specify________________________ _

Q.5. Who should be entrusted with the task of investor education and awareness?

Govt. Depositories Depository Participants

Brokers Issuers and R&T Agents Self-Education by Investor

Q.6 On cost-benefit aspect of the system which statement seems to be true.(Please tick only
one statement)

♦ Charges are appropriate in comparison of benefits and services to investors

□
♦ Charges are negligible (or Less) keeping in view so many advantages of
□
□
the system to account holders

♦ Charges are more having regard to the services provided

Q.7 The system has proved an effective and efficient tool in dealing with the diseases of.

a) Fake and mutilated share certificates Yes / No / Can't say

b) Bad and improper deliveries of securities Yes / No / Can't say

c) delays in registration and transfer of scripts Yes / No / Can't say

d) Fake signatures and signatures mismatches Yes / No / Can't say

e) Delay in receipt of refund orders and allotment letters Yes / No / Can't say

f) Large settlement period for trade done in exchanges Yes / No / Can't say

g) Less liquidity Yes / No I Can't say

h) Low volume of trade due to hurdles of post trading operations Yes / No / Can't say

i) Problem of selling and buying of odd lots Yes / No / Can't say

Q.8 What type of operational problems do you generally face while working in present depository
environment?
Yes No

a) Lack of alertness by investor in filling up the Delivery Instruction Slips.

b) Negligence in submitting delivery instructions in time before pay-in.

c) Tough competition regarding charges.

d) Problem to keep the system up-to-date on daily basis.

e) Rectification of any error is not possible without consent of account-holder

f)

g)
Duty to provide Transaction and Holding-Statements at regular intervals

Any other problem (please specify)___________________________________

□
Q.9 (a) Depository organises Investor-Depository Meets at regular intervals in different cities.
Which statement seems to be correct regarding these meetings?

(i) Meetings are attended by large number of investors True/False

(ii) Sufficient number of meetings are held throughout the year True / False
(iii) Meetings are held in almost all cities True / False

(b) How much effective and helpful these meetings are?

Very much Somewhat Not much Can't say

Q.10 Do you recommend these suggestions to make

people educate about the system? Recommended Not Recommended

a) The date of Depository-Investors Meets shojld be

printed on the sta tements of demat accounts to be
sent by DPs to investors.
□ □
b) Depository-Investors Meets should be made more
interesting, knowledgeable and interactive. □ □
c) Frequency of such meetings should be increased.
□
d) Meetings should Ise held in different areas especially
in small cities to attract more and more investors. □ □
Q. 11 (a) Do you have any regular monthly publication of any magazine covering latest news and
important circulars about depository system?
Yes/No

(b) If yes, how many numbers of copies are approximately printed and distributed for your monthly
magazine?

In hundreds In thousands In lakhs

(c) There is a booklet 'Investor's Guide to Depository'. How many times this book has been
revised?

Once Twice Many Time Never

Q. 12 Is there any established help-desk which can direct investors to appropriate agency in case
of any discrepancy?
Yes/No

If yes, please give the address

phone number
Q.13. How the system has effected these areas?

a) Privacy of portfolio of an individual Positive / Negative / No Effect

b) Attraction for newcomers in securities market Positive / Negative / No Effect
c) Investor interested to hold the shares for long time Positive / Negative / No Effect
d) Investor interested in trade in securities Positive / Negative / No Effect
e) A layman who has glamour for market Positive / Negative / No Effect

Q.14. There should be.

a) Investor Protection Act for safeguard of interests of investor Yes / No

b) Investors Charter of Rights to be observed by all market participants Yes/No
c) Simplicity of Acts related with Investments. Yes / No
d) There should be fix limits and strict rules regarding maximum charges Yes / No
to be taken by DPs from investors

Q. 15. The biggest benefit of operating in the depository environment

Q16. Drawback of the present system

Q17. Kindly specify your suggestion, especially on some topic or point that should be covered in
'Operational Framework of Depository System'.

PERSONAL PARTICULARS:

Name _____

Qualifications _____

Designation _____

Address ____

Phone number

Thanks For Kindly Sparing Your Valuable Time

 PERSONAL INTERVIEW WITH ISSUERS AND RTAs / CLEARING MEMBERS OF CLEARING
CORPORATION/STOCK EXCHANGES ABOUT THEIR EXPERIENCES REGARDING
OPERATIONAL FRAMEWORK OF DEPOSITORY SYSTEM

Q. 1 How do you find the operational aspect of depository system in comparison to physical
mode of transfer and holding Securities?

Q.2 In your opinion whether the system has been welcomed by all as desired and has been
implemented effectively?

Q.3 Do you agree with these benefits of the system

(Please say yes or no)

a) Immediate transfer of securities

b) Increased comfort level

c) Simplified procedures of pledging and lending of securities

d) Reduction in transaction cost

e) Made the security market secured for buyer as well as for seller
due to Delivery vs. Payment system
f) Shortened settlement period to T+2 rolling system

g) Getting rid of enormous paperwork

h) High jump in frequency of securities traded in stock exchange.

i) Made it possible to hold all investments in a single account.

j) Fast and efficient communication with investors

k) Made securities market highly liquid

Q.4 Who should be entrusted with the task of investor education and awareness?

Govt. Depositories Depository Participants

Brokers issuers and R&T Agents Self-Education by Investor

 Q.5 On cost-benefit aspect of the system which statement seems to be true.(Please tick only
one statement)

♦ Charges are appropriate in comparison of benefits and services to investors

□
♦ Charges are negligible (or Less) keeping in view so many advantages of
the system to account holders □
♦ Charges are more having regard to the services provided
□
Q.6. The system has proved an effective and efficient tool in dealing with the diseases of.

a) Fake and mutilated share certificates Yes / No / Can't say

b) Bad and improper deliveries of securities Yes / No / Can't say

c) delays in registration and transfer of scripts Yes / No / Can't say

d) Fake signatures and signatures mismatches Yes / No / Can't say

e) Delay in receipt of refund orders and allotment letters Yes / No / Can't say

f) Large settlement period for trade done in exchanges Yes / No / Can't say

g) Less liquidity Yes / No / Can't say

h) Low volume of trade due to hurdles of post trading operations Yes / No / Can't say

i) Problem of selling and buying of odd lots Yes / No / Can't say

Q. 7 (For clearing member only)

A) You use Internet based service regarding operating your clearing account Yes / No

B) Do you face any operational problem in these routes of settlement of transaction.

i) Receiving securities for pay-in from investors/clients Yes /No

ii) Delivering securities to the clearing house/corporation for pay-in Yes /No

iii) Receving pay-out from the clearing house/corporation Yes /No

iv) Distribution of pay-out to investors/clients Yes /No

C) Settlement of a trade through Auction or Square off is faced by an investor because of

a) Investor's own negligence b) Without any negligence of investor

c) a & b both cases

Q.8 (For Issuers/RTAs only)

A) Generally what type of grievances are faced by investors while operating in depository
environment?

i) Unanswered and unsolved problems regarding dematerialisation of securities True / False

ii) Mismatch of records creating problems in distribution of corporate benefits True / False

iii) Problems arising due to lack of alertness of investor. True / False

iv) Any other type of problem faced by investor________________________________________

B) You are an important part of Depository System. In your opinion who should be the final
authority regarding settlement of all the disputes concerning with dematerialisation of old
certificates?

SEBI Depositories Issuers of Securities RTAs

Q.9 There should be.

a) Investor Protection Act for safeguard of interests of investor Yes / No

b) Investors Charter of Rights to be observed by all market participants Yes / No

c) Simplicity of Acts related with Investments. Yes / No

d) There should be fix limits and strict rules regarding maximum charges Yes / No
to be taken by DPs from investors

Q. 10 The biggest benefit of operating in the depository environment________

Q. 11 Drawback of the present system

Q.12. Kindly specify your suggestion, especially on some topic or point that should be covered in
'Operational Framework of Depository System'.

PERSONAL PARTICULARS:

Name _____

Qualifications _____

Designation _____

Official Address : _____

Phone number

E-mail ■■ifr—
rT 332,1752 R 279 O

Thanks For Kindly Sparing Your Valuable Time