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“Stock Holding Corporation of India Limited”
(India’s Largest Depository Participant)
(ii) Review of literature and Problem Statement:
The Indian investor community has undergone a sea change in the past few years. India now has a very large investor population and ever increasing volumes of trades
This study deals with various investment avenues like equity, bonds, debentures, bank deposits, insurance, mutual funds etc. and the risk involved in it. Apart from this, it also gives emphasis on the depository and various functions of depository participants.
This study also consists of the investment pattern of people who reside in an economically developing area and how the investment pattern of people varies according to their social classes like age, education, income etc. For this study, I have taken Bangalore as an economically developing area. In Bangalore, people are generally preferred to take risk in investment and invest in such avenues where the return is more. Like that, the middle age group people are investing more in Insurance, Equity and Mutual Funds, where as the old age group people prefer to invest in government securities, Bank Deposits etc.
And among SHCIL product, investor is giving more preference to ‘Stock Direct’ rather than any other of its products. However, government securities are the more preferred product among older age group investors. As is one of the major DP in India, 85 per cent of its client are dealing with Demat Transaction only and merely 15 per cent of its client invested in other products.
The Corporation provides Depository related services to its retail segment through more than 140 offices located across the length and breadth of the country. SHCIL commenced extending Depository related services to the retail segment as well and over the last six years. SHCIL also has one of the best infrastructures in the country in terms of networking and hardware equipment. With the introduction of the Depository system in the country. ICICI. UTI. The Wide Area Network (WAN) nicknamed “SHCIL Net” is one of the largest WANs in the country. SHCIL has a network of more than 140 branches spread across the country providing services at your doorstep. LIC. Across the country. 14 Depository Participant Machines (DPMs) connected to NSDL and 7 DPMs connected to CDSL ensure fast and direct Processing of client’s instructions. including the prestigious Smithsonian Institution in the US. SHCIL acts an intermediary between investors and NSDL/CDSL. IFCI and IIBI.a) Profile of Study Stock Holding Corporation of India Limited (SHCIL) was promoted by public financial Institutions and insurance majors like IDBI. it has as come to acquire the stature of the largest Depository participant besides being the country’s largest custodian. Information Technology: SHCIL handling large volumes of Securities has facilitated by the state-of-the-art technology in use at SHCIL. GIC and its subsidiaries. Its highly automated set up and applications have been acclaimed by both national and inter national organizations. SHCIL has endeavored to constantly add and innovate to make business a pleasure for investors. while its IT activities have been certified for ISO-9001:2000 by BVQI. From a tentative foray in 1988 into the individual investor arena to servicing around seven lakhs account. 1986. SHCIL 2 . SHCIL in house development methodology has been certified at CMM level-3 by I-fex. It was incorporated on 28th July. Further. SHCIL was the first Depository participant to start Depository services.
A Portfolio is a combination of different investment assets mixed and matched for achieving an investor’s goal. This is called Investment. Instead of keeping the savings idle. These intermediaries offer to share their commission from there concerned organization with the individual investor thus investor get additional advantages while investing through intermediaries. 3 . There are various sources. Financial service intermediaries These intermediaries promote securities among the public.” There are various investment avenues such as Equity. Bonds. Many of these intermediaries are the agencies of specific instruments especially tax saving instruments. which provide information to investor undergoes various analyses some times he takes advice from experts. government bodies and mutual funds are the main source of investment information many of these enterprises have their own website and post investment related information on the site. There are various factors. which affects investor’s portfolio such as annual income. economical changes etc. natural calamities. the securities board if India uses various modes to promote investors education. Insurance. And takes great effort to achieve an investor friendly secondary market in India the reserve bank of India also provide useful information relating to the prevent interest rates and non banking financial intermediaries that mobiles money through deposit schemes. With respects to secondary market. you may like to use savings in order to get return on it in the future. Initiations floating financial securities Corporate house.b) Justification of Study The money you earn is partly spent and the rest saved for meeting future expenses. government policy. Bank deposit etc. Financial market Stock exchange and regulated bodies also provide useful information to investor to make there investment decisions.
make the investment. one must ensure to: Obtain written documents explaining the investment Read and understand such documents Verify the legitimacy of the investment Find out the costs and benefits associated with the investment Assess the risk-return profile of the investment Know the liquidity and safety aspects of the investment Ascertain if it is appropriate for your specific goals Compare these details with other investment opportunities available Examine if it fits in with other investments you are considering or you have already made Deal only through an authorized intermediary Seek all clarification about the intermediary and the investment Explore the options available to you if something were to go wrong. Besides information on securities. Objectives of the proposed Study • • • • • To understand the capital market and its various participants To study the depository system. its structure and operations To study investors preferences and trends. and so on provide investment information to the public. analysis of information and in certain instance suggest suitable investment decisions to be made by investor. These are called the twelve Important Steps to Investing 4 . financial magazine. and then.Media Press sources such as financial newspapers. if satisfied. these sources also provide. To understand investors behavior on various investment alternatives. To study portfolio of investor and basis of there study Before making any investment. internet website. (iii). business news channel. to the some extent.
(iv). Research Methodology & Analytical Tools a) Source of Data: Methodology: Collection of data from primary and secondary source Primary source • • • • • • • • Questionnaire Personal interaction Observation Secondary Source Company website Customer data base Company report Books and publications Related information from net b) Sampling & Sample Survey Selection of sample • • • • Population : investor of SHCIL and BGSE Sample Frame: people who are investing regularly Sample size : 80 investors Sample method : Random Sample c) Tools of Analysis Measurement and analysis technique • Simple percentage method 5 .
How ahs the company been faring over the past few years? Seek information on its current operations. devaluation of rupee may brighten prospects of all export-oriented companies. For instance.• • Graphical representation using data code sheet Applying various mathematical calculation The most used tools for performing economic analysis are Gross Domestic Product Monetary policy and liquidity Inflation Interest rate International influences Consumer sentiments Fiscal policy etc Industry Analysis: It is very important to see how the industry to which the company belongs is faring. growth plans. 6 .. National Hydroelectric power Company (NHPC) Ltd. Etc. For example. and Competition over the industry life cycle Company Analysis: Company analysis involved choice of investment opportunities within a specific industry that companies of several individual companies. managerial capabilities. need to be checked. Companies producing similar products are subset (form a part) of an Industry/Sector. Tools for industry analysis Cross study industry performance Industry performance over times Differences in industry risk Prediction about market behaviors. its past performance vis-à-vis its competitors etc. Specifics like effect of Government policy. belong to the Power Sector/Industry of India. future demand of its products etc. Investment analysts call this as Industry Analysis. At times prospects of an industry may change drastically by any alterations in business environment.. Tata power company (TPC) Ltd. National Thermal Power Company (NTPC) Ltd.
income level etc.e. protected markets. (v) .Financial Analysis: If performance of an industry as well as of the company seems good. Scope/ Relevance of Proposed Study Business research courses are recognition that students in business. For this. There might be a chance that the perceptions of the investors’ of different nature are varied due to diversity in social life. current size of equity etc. living pattern. you need to understand financial statements of a company i. For that. for arriving at the estimated future price. d) Limitations of Study The study is conducted by taking a limited number of sample sizes which is stated earlier and this study reflects the perceptions of those investors who are residing in Bangalore. then check if at the current price. look at the financial performance of the company and certain key financial parameters like Earnings per Share (EPS). and macroeconomic savings – investment issues. trade policies. Two factors stimulate an interest in more scientific decision making: (1) The manager’s increased need for more and better information and (2) The availability of improved techniques and tools to meet this need. These changes have created new knowledge needs for the manager. and public organizations – in all functional areas – need training in the scientific method and its application to decision making. not-for-profit. the share is a good buy. Other knowledge demands have arisen from problems with mergers. P/E ratio. This is termed as Financial Analysis. Balance Sheet and Profit and Loss Account contained in the Annual Report of a company. technology transfers. 7 .
Proposed questionnaire 1. Name of investor: _____________________ 2. Occupation: Employed: О Private Sector О Public Sector Self-Employed: О Business О Profession Retired: Not Employed: 4.(vi). Annual income: Below 150000 150000 to 300000 300000 to 450000 8 . Age group: Below 20 20 to 35 35 to 50 50 and above 3.
Are you short term investor or long term investor: Short term investment Long term investment Both 6. How frequently do you invest? Weekly Monthly Quarterly Half yearly Yearly 8. What is your investment per annum? Below 20000 20000 to 40000 40000 to 80000 80000 to above 7.450000 and above 5. What are your various investment alternatives? Equity Real Estate PPF Mutual Fund Debentures/Bonds Gold/Silver Bank Deposits 9 .
RANGNATHAN) Security Analysis & Portfolio Management (FISCHER & JORDAN) 10 .shcil.com www. References Web sites www.com Text Books Financial management (PRASANNA CHANDRA) Investment Analysis & Portfolio Management (M.com www.bseindia.com www.Insurance Others Please specify: __________________ 9. Basis of Investment: Self Analysis Financial Advice Brokers Advice Friends/Relatives Advice Charted Accountant Advice 10. Source of study Business Channels Business papers Business Magazines Internet (vii).nseindia.onlinestockholding.
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