A Project titled

“A DETAILED ANAYLYSIS OF DEPOSITORY PARTICIPANT WITH RESPECT TO STOCK

HOLDING CORPORATION OF INDIA LIMITED”

Submitted to University of Mumbai

For partial completion of the degree of Master of Commerce

Under the faculty of Commerce

Submitted by

DIVYA KODEESWARAN

Roll No. 12

Under the guidance of

ASST.PROF. PRASANTH RAJAN

V.K KRISHNA MENON COLLEGE OF COMMERCE & ECONOMICS

AND SHARAD SHANKAR DIGHE COLLEGE OF SCIENCE BHANDUP (EAST), MUMBAI-
400042

ACADEMIC YEAR
2021-2022

V.K KRISHNA MENON COLLEGE OF COMMERCE & ECONOMICS

AND SHARAD SHANKAR DIGHE COLLEGE OF SCIENCE BHANDUP (EAST), MUMBAI-
400042
 V.K KRISHNA MENON COLLEGE OF COMMERCE & ECONOMICS
AND SHARAD SHANKAR DIGHE COLLEGE OF SCIENCE
BHANDUP (EAST), MUMBAI-400042

CERTIFICATE

This is to certify that MS DIVYA KODEESWARAN has worked and duly completed
her project work for the degree of Master of Commerce (Accountancy) under the
faculty of commerce and her project is entitled, “A DETAILED ANAYLYSIS OF
DEPOSITORY PARTICIPANT WITH RESPECT TO STOCK HOLDING
CORPORATION OF INDIA LIMITED” under my supervision.

INTERNAL EXAMINER EXTERNAL EXAMINER PRINCIPAL

DATE OF SUBMISSION
 DECLARATION

I DIVYA KODEESWARAN, the undersigned here by, declare that the work embodied

in this project titled “A DETAILED ANAYLYSIS OF DEPOSITORY

PARTICIPANT WITH RESPECT TO STOCK HOLDING CORPORATION OF
INDIA LIMITED”, forms my own contribution to the research work carried out under
the guidance of ASST.PROF. PRASANTH RAJAN is a result of my own research
work.

Wherever reference has been made to previous works of others, it has been clearly
indicated such and included in the bibliography.

I, hereby further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

(DIVYA KODEESWARAN)
 ACKNOWLEDGEMENT

To list all have helped me in difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channel and fresh
dimensions in the completion of this project.

I take this opportunity to thank University of Mumbai for giving me chance to do this
project.

I would like to thank my Principal, SAROJ V PHADNIS for providing the necessary
facilities required for completion of this project.

I take this opportunity to thanks our Co-ordinator ASST.PROF. ANJANA ASHOKAN

for her moral support and guidance.

I would also like to express my sincere gratitude towards my Project Guide

ASST.PROF. PRASANTH RAJAN whose guidance and care made the project
successful.

I would like to thanks my college library, for having provided various reference books
and magazines related to my project.

Lastly, I would like to thanks each and every person who directly or indirectly helped
me in completion of the project especially my parents and peers who supported me
throughout my project.
 INDEX

Sr No. Title Page No.

CHAPTER 1 Introduction 3-7

CHAPTER 2 Research Methodology 9-13

CHAPTER 3 Literature review 14-50

CHAPTER 4 Data analysis &interpretation 76-52

&presentation
CHAPTER 5 Conclusion 78

CHAPTER 6 Suggestions 80

CHAPTER 7 Annexure 81

CHAPTER 8 Bibliography 82
ABBREVIATION

• SHCIL: Stock Holding Corporation of India Limited.

• IFCI LTD: Industrial Finance Corporation of India.
• LIC: Life Insurance Corporation.
• GIC: Guaranteed Investment Certificate.
• SUUTI: Specified Undertaking of Unit Trust of India.
• NIA: The National Investigation Agency.
• NIC: The National Informatics Center.
• UIC: United Industrial Corporation.
• TICL: Tata Investment Corporation Limited.
• SEBI: The Securities and Exchange Board of India.
• BSE: The Bombay Stock Exchange.
• NSE: The National Stock Exchange of India Limited.
• CDSL: Central Depository Services (India) Ltd.
• NSDL: National Securities Depository Limited.
• OTCE: The OTC Exchange of India. (Over The Counter).
• DP: Depository Participant.
• NRI: Non-Resident Indian.
• KYC: Know Your Customer.
• SIP: Systematic Investment Plan.
• BLA: Bond Ledger Account.
• NECS: National Electronic Clearing Services.
• IRDAI: Insurance Regulatory and Development Authority of India.
• LLP: Limited Liability Partnership.
• CRA: Central Record Keeping Agency.
• CRN: Corporate Registration Number.
• PRAN: Permanent Retirement Account Number.
• IDBI: Industrial Development Bank of India.
• UTI: Unit Trust of India.
• ICICI: Industrial Credit and Investment Corporation of India.
• AMC: Annual Maintenance Contract.
• GOI BONDS: Government of India Bonds.
• CRM: Customer Relationship Management.

1
 CHAPTER 1:

INTRODUCTION

OF

PROJECT

2
 INTRODUCTION

STOCK HOLDING CORPORATION OF INDIA LIMITED (SHCIL) is India’s largest

custodian and depository participant, based in Mumbai, Maharashtra. SHCIL was
established in
1986 and was granted a status of government company as per section 2(45) of Indian
Companies Act, 2013. In 2014 SHCIL is known for its online trading portal with investors
and traders. It is also responsible for e-stamping system around India. It is also authorized
by Reserve Bank of India as Agency Bank to distribute and receive Govt. of India
savings/relief bond 2003 along with nationalized banks.
A fast-growing economy needs an equally robust financial ecosystem to back it. At
Stockholding we are committed to making it happen. We were incorporated in 1986 as a
Public Limited Company and are a subsidiary of IFCI Limited. Our equity capital is held
by leading financial companies and banks like LIC, GIC, IFCI Ltd., SU-UTI, NIA, NIC, UIC,
and TOICL.
Since our inception, we have evolved steadily to be a financial powerhouse offering a suite
of offerings which help to ease the financial planning needs of individuals. Covering short-
term savings, investments in the stock market, personal & family needs, long-term
security, easy loans, retirement plans and even protection for life & valuables.
Simultaneously, we brought an entire spectrum of financial products and services to help
businesses grow. By simplifying depository participation, raising capital, protecting assets
and life, managing documents, imparting training and bringing exciting schemes for
employees.
That’s not all. We have pioneered Demat services in India and our e-Stamping service has
made payment of Government dues hassle-free. As India’s premier custodian, we offer a
comprehensive spread of custodial services that allow both Indian Institutional Investors
and Foreign Portfolio Investors to invest in India with confidence. Little wonder then that
we manage over ₹38 lakh crores in Assets Under Custody.
As peoples’ needs keep growing, we are ready with our enhanced efficiencies and new
technology to offer world-class service that delights. Little wonder then that, we are
soaring higher and happily catering to over 5+ crore customers, through a growing
nationwide network of over 200+ branches.
After all, our customers believe that at StockHolding, we look after everything.
▪ Trusted by over 5+ crore customers in India and abroad
▪ Wide network of 200+ branches and growing
▪ Premier custodian of India
3
 ▪ Pioneer of Demat Services
▪ AUC of over ₹38 lakh crores
▪ Winner of ET ICONIC brands of India

Our Mission
“To be a world-class ‘technology driven’ and ‘client focussed’ market leader in financial
and technical services”

Our Vision
“To emerge as a partner of choice in bringing delight to customer experience in financial
and IT solution services”

OBJECTIVE OF SHCIL:

 Stock Holding began by offering custodial and post trading services, adding
depository services and other services to its portfolio over a period of time.

 Stock Holding has established itself in India as a one-stop solution provider in the
financial services domain.

 Well integrated front and back office, paper and electronic system. A focused client
relation team to manage your needs & queries.

 Regular Audits internal and external, by SEBI, Depositaries, Clients and compliance
to rules and regulations.

 Full confidently of business operations.

OUR VALUES:
 Safety and efficiency of Operations is a hallmark of Stock Holding.

 Professionalism & Integrity.

4
  Customer First.

 Relationship Building

 Commitment to Quality irrespective of asset size.

PRODUCT OFFERING:

 Equity Segment: BSE/NSE

 Depository Services: CDSL/NSDL(Stockholding)

 Derivatives NSE F&O

 Currency Derivative

 Commodity Derivative

 Mutual Fund

SHCIL SUBSIDIARIES:
 SHCIL SERVICES LIMITED

 STOCKHOLDING DOCUMENT MANAGEMENT SERVICES LIMITED

 STOCKHOLDING SECURITIES IFSC LIMITED (SSIL)

SHCIL SERVICES LIMITED

SHCIL Services Limited (SSL) is a SEBI registered corporate stock broker

providing safe and reliable services to all institutional and retail clients across
length and breadth of the country. SSL offers services in both cash and F&O
5
 segment of BSE & NSE and currency derivatives segment of NSE. SSL started
broking operations in July 2006. It has a large clientele base in retail segment.
It has also wide clientele in institutional segment comprising leading
domestic institutional investors, including Mutual Funds, Insurance
Companies, Banks and other Financial Institutions.

MANAGEMENT TEAM:

Head of Finance:

Ms. Neha Sunke.

Company Secretary, Legal and Compliance officer:

Mr. Rajneesh Singh.

• STOCKHOLDING DOCUMENT MANAGEMENT SERVICES LIMITED

Stock Holding Document Management Services Limited (Stockholding

DMS) is a wholly owned subsidiary of Stock Holding Corporation of India
Limited. Which is a single window provider to the financial services sector
in India. Stock Holding DMS has been incorporated in the year 2006 with the
objectives of providing end to end technology services to the financial service
sector. Stock Holding DMS operates from its head offices at SHCIL HOUSE.
Mahape, Navi Mumbai, along with 180 other offices. The principle business
service provide by Stock Holding DMS is Document Digitization & Record
Management and the company.

Stock Holding DMS provide a variety of products and services:

 Document management system

 Electronic document management system
 Record management system
 Workflow management system
 Stockholding CRM
 Block chain Solutions
 Land Acquisition / Allotment System
 Property Asset Management
 Physical record management solutions
 Digitization Services

6
• STOCKHOLDING SECURITIES IFSC LIMITED (SSIL)

Stock Holding Securities IFSC Limited has its registered office at IFSC, Gift
City, Gandhinagar and is a wholly owned subsidiary of Stock Holding. SSIL
offers a comprehensive bouquet of service solutions to all eligible investors
at IFSC, Gift City.

7
 CHAPTER 2

RESEARCH METHODOLOGY

8
 Objective of the study:

The Objective of the study was to do a descriptive analysis of Depository Participant and
broking services provided by SHCIL and its major competitors in Mumbai on the basis of
Service Marketing.

Outcome of the analysis shows that though SHCIL is on the top position as a market
share in India, but SHCIL is still behind in many more factors and they need to
improve those factors. Some recommendations are given to improve. (Project study
has been done with the help of primary and secondary data).

 Stock Holding began by offering custodial and post trading services, adding
depository services and other services to its portfolio over a period of time.

 Stock Holding has established itself in India as a one-stop solution provider in the
Financial Services domain.

 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.

9
 LIMITATIONS OF THE STUDY

• The purpose of my research study was to understand the impact of stock holding
corporation of India on business firms and organizations and how stock holding
corporation of india are performing. At times I found it difficult to go through each
and every nook and corner of stock holding corporation of india limited since the
topic is a bit vast.

I found it difficult to collect information since there wasn’t much data available
regarding the topic.

10
3.3 DATA COLLECTION

➢ Primary Data

Primary data is a type of data that is collected by researchers directly from main sources
through interviews, surveys, experiments, etc. Primary data are usually collected from the
source—where the data originally originates from and are regarded as the best kind of data
in research.

The sources of primary data are usually chosen and tailored specifically to meet the
demands or requirements of particular research. Also, before choosing a data collection
source, things like the aim of the research and target population need to be identified.

For example, when doing a market survey, the goal of the survey and the sample population
need to be identified first. This is what will determine what data collection source will be
most suitable—an offline survey will be more suitable for a population living in remote
areas without an internet connection compared to online surveys.

Examples Of Primary Data Collection Method

a) Interviews
b) Surveys & Questionnaires
c) Observations
d) Focus Groups
e) Experiments

11
 Secondary Data

Secondary data is the data that has already been collected through primary sources and
made readily available for researchers to use for their research. It is a type of data that has
already been collected in the past.

A researcher may have collected the data for a particular project, then made it available to
be used by another researcher. The data may also have been collected for general use with
no specific research purpose like in the case of the national census.

Data classified as secondary for particular research may be said to be primary for another
research. This is the case when data is being reused, making it primary data for the first
research and secondary data for the second research it is being used for.

Examples Of Secondary Data Collection Method

a) Books

b) Published Sources

c) Un Published Personal Sources

d) Journal

e) Newspapers

f) Websites

g) Diaries

h) Government Records

12
3.4 METHOD OF DATA COLLECTION

. Secondary Data:

Secondary Data used for this project work is in the form of Accounting
Magazines, Newspapers, Public Library, Websites, Wikipedia, Reference books
by authors, Blogs, etc.
Reference for this project was taken from an article by Prakash Kumar Saha and True
Tamplin BSc.

3.5 HYPOTHESIS
Statement Of Hypothesis
A hypothesis is a tentative statement about the relationship between two or more variables.
It is a specific, testable prediction about what you expect to happen in a study.

1. Null Hypothesis:
A null hypothesis is a type of hypothesis used in statistics that proposes that there is no
difference between certain characteristics of a population (or data-generating process). It is
often denoted as H0.

2. Alternative Hypothesis:
An alternative hypothesis, denoted by H1 or HA is a claim that is contradictory to the null
hypothesis. Researchers will pair the alternative hypothesis with the null hypothesis to
prove that there is no relation. If the null hypothesis is disproven, then the alternative
hypothesis will be accepted. If the null hypothesis is not rejected, then the alternative
hypothesis will not be accepted.

13
 CHAPTER 3:

LITERATURE REVIEW

14
 ORGANISATIONAL PROFILE

About The Organization:

 Financial Markets:

Stock Holding Corporation of India Ltd. (SHCIL), the premier Custodian of Indian
Capital Market providing services of International Standers, is geared up to
reposition itself in the changed scenario.

The corporation has restructured and geared itself to serve the growing needs of
individual investors in the paperless environment. The organization in its
willingness to provide its state of art of financial services in securities industries to
the various segments of the investors has expanded itself to more than 100 cities
across the country.

India has well established capital market mechanism where in effective and efficient
transfer of money capital or financial resources from the investing class to the
entrepreneur class in the private and the public sector of the economy occur.

 Capital Market:

The capital market consists of primary market and secondary market segment. The
primary market deals with the issue of new instruments by the corporate sector such
as equity shares, preference shares and debentures. The public sector consisting of
central and state government, various public sector industrial units (PSUs),
statutory and other authorities such as state electricity boards and port trust also
issue bonds.

The secondary market or stock exchange where existing securities are traded is an
auction arena. Since 1995, trading in securities is screen based. Screen based trading
has also made an appearance in India. The secondary consist of 23 stock exchanges
including the NSE and OTCE and Inter Connected Stock Exchanges of India Ltd.

The secondary market provides a trading place for the securities already issued to
be bought and sold. It also provide liquidity to the initial buyers in the primary
market to reoffer the securities to any interested buyer at price, if mutually accepted.
An active Secondary market actually promotes the growth of the primary market
and capital formation because investors in the primary market are assured of
continuous market and they can liquidate their investments in the stock exchange.

15
 Depository:

Depository is an organization where the securities of shareholder are kept in the

electronic form at the request of the shareholder through a medium of a depository
participant (DP). The principle function of depository is to dematerialize securities
and enable their transaction in book from electronically.

In India Depository act defines a depository to mean “A company formed and

registered under the companies act, 1956 and which has been granted a certificate
of registration under sub-section (la) of section 12 of the Securities and Exchange
Board of India (SEBI) act, 1992”. A depository established under the Depository Act
can provide any service connected with recording of allotment of securities or
transfer of ownership of securities in the record of depository. A depository cannot
directly open accounts and provide services to clients. Any person willing to avail
of the services of the depository can do so by entering into an agreement with the
depository through any of its Depository Participants.

Legal Frame Work of Depository:

The Depositories act of 1996 provide for regulations of depositaries in securities and
for matter there with or incidental there to and came into force on 20th of September
1995. SEBI formulated the depositaries and participants regulations act, 1996 to
oversee the matter regarding admission and working of depositaries and its
participant. The depositories act passed by parliament received the presidents
“assent on August 10, 1996 enables the setting up multiple depositories in the
country. Only a company register under the Companies Act of 1956 and sponsored
by the specified categories of Institution can setup depositories in India. The
depositary offer services relating to holding of securities and facility processing of
transection in such securities in book entry form. The transactions handed bye
depositaries include settlement of market trades, settlement of off trade, securities
lending and borrowing, pledge and hypothecation.

16
 ▪ MANAGEMENT TEAM:
• Chairman:
Shri Ramesh NGS

• Chief Operating Officer:

Shri Rohinton Hirji Mewawala

• Non-Executive Chairman:
Shri Dr. E. Sankara Rao

• Chief Financial Officer:

Shri L. Viswanathan

• Company Secretary:
Shri Shashikant L. Nayak

PRODUCTS AND SERVICES:

Personal Services:

1. DEMAT

2. TRADING

3. MUTUAL FUND

4. GOI BONDS

5. INSURANCE

17
6. NATIONAL PENSION SCHEME.

7.IPO

1.DEMAT: -

INTRODUCTION

Similar to a bank account which holds your money, Deposits and so on, A Demat account
or a web Demat account is the account which holds shares, bonds, government securities,
mutual funds, and exchange-traded funds (ETFs). In simple terms, a Demat account is a
must have and primary step for transacting in the share market.

In India depositories such as NSDL and CDSL provide Free Demat Account services.
Intermediaries, depository participants or stockbrokers facilitate these services. Each
intermediary may have demat account charges that vary as per volume held in the account,
type of subscription and terms and conditions between a depository and a stockbroker.

WHAT IS DEMAT ACCOUNT?

A Demat Account or Dematerialized Account provides the facilities of holding shares and
securities in an electronic format. During online trading, shares are bought and held in
Demat Account, thus facilitating easy trade for the users. A Demat Account holds all the
investments an individual makes in shares, government securities and exchange trade
funds, bonds and mutual funds in one place

What is Dematerialization?

18
Dematerialization is the process of converting the Physical share certificates into electronic
form which is much more easy maintain and accessible from anywhere through world.

TYPES OF DEMAT ACCOUNT

Demat Accounts are online accounts which hold the securities like Shares, Bonds etc. in
dematerialized or electronic form. There are different types of Demat Account for different
Investers.

There are three main types of Demat Account Regular

Demat Account:

A regular demat account used by investors residing in India.

Repatriable Demat Account:

A demat account used by NRI’s under which funds can be transferred aboard. This type
of demat account requires an NRE bank account associated with it.

Non-Repatriable Demat Account:

A demat account used by NRI’s under which funds cannot be transferred abroad. This type
of demat account requires an NRO bank account associated with it.

BENEFITS OF DEMAT

The benefits of demat account are as follows:

• Easy and convenient way to hold securities.

• Safer than paper-shares
• Reduce paperwork for transfer of securities. Reduced transaction cost
• No odd lot problem even one share can be sold

19
 • Change in address record with depository participant gets registered with all
companies in which investor holds securities eliminating the need to
correspond with each of them separately.
• Transmission of securities is done by the depository participant
• Automatic credit into demat account for shares arising out of bonus,
consolidation etc
• A single demat account can hold investments in both equity and debt
instruments.
• Traders can work from anywhere.

DEMAT ACCOUNT OPENING PROCEDURE

I. The predominant point which id to be carried is to, click on the green button
“Open Demat
Account”
II. Download the demat account form, multiple question will be asked such as Name,
Address, Age etc. Do the needful and the company will call you back to share a
link of EKYC.
III. Open the link to find the form, and fill the details of identify and back i.e Adhar
Number, Pan Number, DOB, Bank Account Number and IFSC Code.
IV. Must mention complete name as it is in official documents.
V. Every answer and every detail fill will be validated by the officials of the company.
VI. After validating answers will be asked to upload the documents and documents
which are mentioned below
VII. The documents also be sent for the validation after the sign.
VIII. After the successful validation procedure, will able to access demat account.

Here are KYC documents are required to submit to SHCIL services.

• Address Proof
• DOB Proof
• Pan Card
• Adhar Card Passport Size Photo
• Bank Account Details.

20
DEMAT ACCOUNT OPENING CHARGES

Here is the reference of SHCIL Services Demat Account Charges. Demat account opening
charge is the cost paid by the customers of the SCHIL services to the company, while they
approach to open their Demat Account.
SHCIL SERVICES DEMAT ACCOUNT CHARGES

Depository Participant CDSL & NSDL

Account Opening Charges Rs.399

Demat AMC Rs.229 Per Annum

Trading AMC Free

Margin Required Minimum Rs.5000

Dematerialization Available Yes

The SHCIL services account opening charge levied on the customers of SHCIL services are
RS.399. It is a single payment customers need to pay. The SHCIL services linked with the
Depository Participant of CDSL & NSDL.

FORMS OF DEMAT:

NSDL

• Individual Account Opening Form

• Non Individual Account Opening Form
• Demat Request
• Redemption Form
• Off Market Reason Code
• Client Updation Form

CDSL

• Format for Details of promoters/Partners/Karta/Trustees & Whole time Directors

• Individual Account Opening Form
• Non Individual Account Opening Form
• Demat Request Form
• Redemption/Repurchase
• Sms Alert CDSL
• Encumberance, NDU

21
 Other forms

• Nomination Form (NSDL and CDSL)

• Declaration for same email & sms
• Know Your Customer (KYC) Application Form (Individual)
• Know Your Customer (KYC) Application Form (Related Person)
• FATCA/CRS Declaration for Individual

2.TRADING

INTRODUCTION

A trading account used to buy or sell equity shares in stock market. Previously the stock
exchange functioned on the open outcry system. In this, the traders used hand signals and
verbal communication to convey their buying/selling decisions. Soon after the stock
markets adopted the electronic system, trading account replaced the open outcry system.
In the online method, the buyers and sellers don’t have to be physically present at the stock
exchange to place orders. Instead they open a trading account with the registered stock
market broker who conduct trading on their behalf.

22
 THERE ARE TWO TYPES OF TRADING

1.Equity Trading

Stock holding facilitates equity and commodity trading through various exchanges. Our
clients can choose from a variety of service channels specially designed to suit customers’
requirements. Our offering ranges from the service through branch channel as also call-n-
trade, online trading, trading through mobile app etc. we at stock holding ensure that
clients have adequate means and proper resources for trading in capital market. Our
customer friendly trading system, attractive tariffs and well researched stock
recommendations help in enriching the client experience.

2.Derivative Trading

Stock holding facilitates derivative trading for its clients and has an exclusive Derivative
Desk. Our certified analysts and top class information systems help you in understanding
the market trends and take suitable actions either to hedge the market position or to take
fresh position in the derivative market. Attractive tariffs, investor friendly online and
offline trading systems and well researched recommendations help in enhancing the
overall customer experience.

HOW TO OPEN TRADING ACCOUNT?

I. The first step involved in opening a trading account is selecting a SEBI-registered

stockbroker. A broker with a valid registration number that is issued by SEBI is
necessary to open a Demat accounts.
II. In order to open a trading account, an individual has to submit a ‘Client
Registration Form’ and other documents as prescribed by SEBI - the regulator for

23
 the securities market in India. An Account Opening form and Know Your Client
(KYC) documents must be submitted along with the investor’s identity and address
proofs.
III. The details will then be verified through a phone call or an in-house visit.
IV. After verification, the account will be processed and the investor will receive
his account details.

DOCUMENTS REQUIRED

The basic documents required for opening a trading account are:

• Account Opening form.

• Photo ID proof: PAN card / Voter's ID / Passport / Driving license / Aadhaar card.
• Address proof: Telephone bill / Electricity bill / Bank statement / Ration
card/ Passport / Voter's ID / Registered lease or sale agreement/ Driving License.

BENEFITS

• Insightful Research:
We provide perspective and fundamental research on several stocks across sectors.
• Expert Advice:
Our stock market experts are always focused on client’s needs with innovative and
users’ friendly solutions.
• Multiple Platforms:
We help you in accessing multiple platform that unable seamless execution of
complex trades across multiple market segment.
• Thinking Beyond:
We have an exclusive directive desk which offers services on various derivatives
like currency, interest, commodities and cash
• Online Convenience:
Our robust trading platform is accessible for all kind of digital device and it easy to
access from device ranging from PC to mobile allowing end to end only experience.

24
3.MUTUAL FUND

INTRODUCTION

Mutual funds are ideal for investors who have diverse investment goals. At stock holding
we bring you a perfect line up of mutual funds that combine the best of expert fund
managers, lower transaction cost, diversification, growth, and liquidity and tax benefits.

TYPES OF MUTUAL FUND

It is important to understand the Mutual Fund type and their features, Mutual Fund types
can be classified based on the following characteristics.
Based on asset class:

1. Equity Fund
2. Debt Funds
3. Money Market Fund
4. Hybrid Fund

Based on structure:

1. Open-ended Fund
2. Close-ended Fund
3. Interval Fund

Based on investment goal:

1. Growth Fund
2. Income Fund
3. Liquid Fund
4. Tax Saving Fund
Various type of Mutual Fund exist to cater to different needs of different people. Largely
they are of three types.

25
Equity or Growth Funds

• These invest predominately in equities i.e. shares of companies.

• The primary objective is wealth creation or capital appreciation.
• They have the potential to generate higher return and are best for long-term
investments.

Examples would be

• Large Cap funds which invest predominantly in companies that run large
established business.
• Mid Cap funds which invest in mid-sized companies.
• Small Cap funds that invest in small-sized companies.
• Multi Cap funds that invest in a mix of large, mid and small sized companies.
• Sector funds that invest in companies that are related to one type of business.

For e.g. Technology Funds that invest only in technology companies.

• Thematic funds that invest in common theme. For e.g. infrastructure funds that
invest in companies that will benefit from the growth in the infrastructure segment.
Tax-Saving Funds

Income or Bond or Fixed Income Funds

• This invest in fixed income securities, like government securities or bonds,

commercial papers and debentures, bank certificate of deposits and money market
instrument like treasury bills, commercial paper etc.
• These are relatively safer investments and are suitable for both Capital Protection
and Income Generation.
• Example would be Liquid, Short term, Floating rate, Corporate debt, Dynamic
bond, Gilt fund etc

Hybrid Funds

• These invest in both equities and fixed income, thus offering the best of both, growth
potential as well as Income Generation.
• Example would be Aggressive Balanced Funds, Conservative Balanced Funds,
Pension Plans, Child Plans and Monthly Income Plans etc.

26
INVESTMENT METHODS

SIP

Systematic Investment Plan (SIP) helps you build wealth, step-by-step, over a period of
time. SIP can be started for as low as Rs. 500 per month and gives you the benefit of the
power of compounding and rupee-cost averaging. SIP payments can be automated by
providing an online mandate.

LUMPSUM

Lump-sum allows you to invest in Mutual Fund by paying a bulk amount. There is no
compulsion to buy units at regular intervals or for any fixed amount if you wish to reinvest
in the same fund.

BENEFITS

• Simplicity
Mutual Funds are easy to understand and invest in

• Accessibility
Can be bought by filling an online form or visiting any of our branches

• Diversification
Mutual Funds have broad market exposure, hence risk can be minimized.

• Professional Management
Since a team of expert fund managers work to manage your portfolio, you can
breathe easy.

FEATURES
• Completely Paperless
Get Ready to Invest in 5 Minutes after completing online KYC.

• SIP Auto Payments

Mandate done on single click and enjoy the power of auto SIP.

• Family Accounts
Manage portfolio of family members under single profile and track all investments
seamlessly.
27
 • On-board previous investments
In just one click get all your existing mutual fund investment under one roof.

• Robotic Advisory
Avail of powerful feature where a software suggests an ideal investment basket
based on your risk profile.

4.GOI BONDS

INTRODUCTION

A government bond is debt instrument issued by the Central and State Governments of
India. Issuance of such bonds occur when the issuing body (Central or State Governments)
faces a liquidity crisis and requires funds for the purpose of infrastructure development.
Government Bond in India is essentially a contract between the issuer and the investor,
where in the issuer guarantees interest earnings on the face value of bonds held by
investors along with repayment of the principle value on a stipulated date.
Government Bonds India ,fall under the broad category of government securities (G-Sec)
and are primarily long term investment tools issued for periods ranging from 5 to 40 years.
It can be issued by both Central and State governments of India. Government bonds issued
by State Governments are also called State Development Loans (SDLs).

ELIGIBILITY

Individuals (Single, Joint or Minor) and HUF’s can invest in these bonds. Face value of
bonds is Rs.1000 and the minimum investment is one bond Rs1000. Non Resident India
cannot invest.

28
LIMIT AND TENURE

There is no maximum limit on investment. Bond tenure is 7 years.

BENEFITS

• Secure
GOI bonds are issued by RBI. They are sovereign in nature and absolutely safe.

• Hassle-free maintenance
GOI bonds are issued only in the DEMAT mode on the Bond Ledger Account (BLA)
of the investor which is created on the date of realization of draft/cheque.

• Exemption from Wealth Tax

Interest is taxable under IT Act 1961. Exempt from Wealth Tax under Wealth Tax
Act 1957.

• Pre mature encashment for senior citizens

Pre mature encashment facility is available for investor in the age bracket of 60 to 70
years, for investor in the age group of 70-80 after 5 years and investor in the age
exceeding 80 years would be 4 years from the date of issue.

• Automated Process
Redemption and interest payment is automated through the National Electronic
Clearing System (NECS) services.

29
 5.INSURANCE

INTRODUCTION

Insurance is a contract between two parties. One party is the insured and the other party is
the insurer. Insured is the person whose life or property is insured with the insurer. That
is, the person whose risks are insured is called insured. Insurer is the insurance company
to whom risk is transferred by the insured. That is, the person who insures the risk of
insured is called insurer. Thus insurance is a contract between insurer and insured. It is a
contract in which the insurance company undertakes to indemnify the insured on the
happening of certain event for a payment of consideration. It is a contract between the
insurer and insured under which the insurer undertakes to compensate the insured for the
loss arising from the risk insured against.

Our dream a million dreams for our family. But untimely demise, serious ailments or even
sudden loss of property or valuables can disrupt your plans. Getting the right kind of
insurance can cover this risk. They bring several customized insurance solutions offering
varied benefits. Pick the best and enjoy a worry free life.

• LIFE INSURANCE

Covers life and provides protection to your family in the unfortunate event of demise or
disability.

Plans on offer

• Protection Plans (Term Insurance)

• Wealth Solutions Plans (ULIP’s)
• Saving Solutions Plans (Endowment and Money back)
• Child Care Plans (Education and Marriage Endownment0
• Pensions/ Annuity Plans (ULIP and Traditional Plans)

Life Insurance Partners:

30
 • GENERAL INSURANCE

Protects your property and valuables against theft, destruction and other unforeseen
dangers.

Plans on Offer

• Fire Insurance
• Moto Insurance
• Health Insurance
• Personal Accident Insurance
• Third Party Liability Insurance
• Marine Cargo Insurance
• Home Insurance

General Insurance Partners

31
 • HEALTH INURANCE

Protect against sudden illnesses, disability and hospitalization with the best options in
health insurance

Plans on Offer

• Individual Health Insurance

• Family Floater
• Critical illness Cover
• Overseas Travel Insurance
• Personal Accident Cover
• Group Health Insurance

BENEFITS

• All insurance solutions under one roof

We offer an exhaustive range of regular and customized insurance offering over a
single window.

• Settlement
Our services and processes ensure the fastest settlement of claims and grievance if
any.

• Reminders

Our staff will follow-up on your policy and provide you with updates/ reminders
in time so that your policy always stays in force.

• IRDAI Authorized

We are licensed by the IRDAI (Insurance Regulatory and Development Authority of

India) as corporate agents.

32
 6.NATIONAL PENSION SCHEME

INTRODUCTION

The NPS started with the decision of the Government of India to stop defined benefit
pensions for all its employees who joined after 1 January 2004. While the scheme was
initially designed for government employees only, it was opened up for all citizens of India
in 2009.

A subscriber can contribute regularly in a pension account during her working life,
withdraw a part of the corpus in a lump sum and use the remaining corpus to buy an
annuity to secure a regular income after retirement.

Contributions to NPS receive tax exemptions under Section 80C, Section 80CCC and
Section
80CCD(1) of Income Tax Act Starting from 2016, an additional tax benefit of Rs.50,000
under Section 80CCD(1b) is provided under NPS, which is over the Rs.1.5 lakh exemption
of Section 80C.Private fund managers are important parts of NPS. NPS is considered one
of the best tax saving instruments, after 40% of the corpus was made tax-free at the time of
maturity and it is ranked just below equity-linked savings scheme (ELSS).

ELIGIBILITY

• Entities registered under Companies Act and various Co-operative Acts.

• Central Public Sector Enterprises
• State Public Sector Enterprises
• Registered Partnership Firm and Limited Liability Partnership (LLP)
33
• Anybody incorporated under any act of Parliament or State legislature or by order
of Central/ State Government.
• Proprietorship Concern
• Trust/ Society

TYPES OF NPS ACCOUNTS

• Tier I:
Employer/ Employee can contribute for retirement into this non-withdrawal
account. Income Tax benefits as per Income Tax Act 1961 are available for both
employer and employee contribution.

• Tier II:
This is voluntary savings facility where the subscriber can avail the fund
management facility at low cost. Subscribers are free to withdraw amount from this
account as per their wish. However the tax benefits are not applicable to Tier II
account.

• Contributions:
Corporate NPS platform allows these variations of contribution
1. Equal contributions by employer and employee
2. Unequal contribution by the employer and the employee
3. Contribution from either the employer or the employee

FUND CHOICE

• Pension Fund Choice

The money collected through NPS is managed by fund managers appointed by the
PFRDA. They primarily invest the NPS funds in three asset classes
1. Equities (E)
2. Corporate Bond (C)
3. Gilt Fund (G)

• Active Choice

Under the active choice in investor can choose the proportion of investment in three
asset classes E, C or G in his own. However the PFRDA does not permit to invest
more that 50% in equity class.

• Auto Choice
34
 Under the auto choice the allocation in the asset classes is made after considering
the age of an investor. The higher the age of the person the lower is the investment
allocation into equities.

STEPS TO JOIN

• Corporate ties-up with Stock Holding by signing MOU

• Corporate submits the CHO-1 form to Stock Holding

New Corporate Registration Form

• Stock holding capture the data of the corporate and submits the form to Central
Record Keeping Agency (CRA). CRA registers the Corporate in the CRA system
and allots
“Corporate Registration Number” (CRN) to the corporate.
• Employees fill-up and submit CSRF 1 form with required KYC Documents to
corporates (Employer).
• Corporate verifies the employment details and sends these forms to the attached
POP.
• POP does KYC verification and sends data and forms to CRA.
• CRA registers the employees and generate a unique Permanent Retirement Account
Number (PRAN).
• PRAN’s are dispatched to employees.

BENEFITS

• Dedicated Corporate Team

We have a team that is committed to helping you open your corporate Demat
Account.

• Customized Transactions
We make it possible to customized transaction uploads and report options.

• Digital Convenience
Online transaction facility is facilitated through our unique product – Transnet.

35
 7.IPO
Initial Public Offerings (IPOs) give you the opportunity to grow your wealth in the
long-term by investing early in companies that promise a high growth potential.
With StockHolding, you can invest in such opportunities by filling in the online

Benefits
• Early action
By investing in an IPO, you can grow your wealth in the long-term if the company
progresses as expected

• Meet long-term goals

IPO investments are equity investments. So, they have the potential to bring in big
returns in the long-term

• More price transparency

The price per security issued is clearly mentioned in the IPO order document. So, you
have access to the same information as bigger investors

• Buy cheap, earn big

The IPO price is often the cheapest price if you invest in a small company that has the
potential to grow big. If you miss the IPO window, investing in that promising company
may be difficult because the stock price may skyrocket

36
 8. Sovereign Gold Bonds

SGB can be bought by paying the issue price and the bonds will be redeemed on maturity in
Indian Rupees based on previous 3 working days simple average of closing price of gold of
999 purity published by IBJA.
Features
Eligibility:
The bonds are restricted for sale to resident Indian entities including individuals, HUFs,
Trusts, Universities and Charitable institutions.
Denomination:
The bonds will be denominated in units of one gram of gold and multiples thereof.
Minimum Investment:
Minimum permissible investment will be 1 gram of gold.
Maximum Investment:
Maximum limit of subscription shall be of 4 kg for individuals, 4 kg for Hindu Undivided
Family (HUF) and 20 kg for trusts and similar entities notified by the government from
time to time
Interest rate:
The investors will be paid Interest on the amount of initial investment at the rate notified
by RBI for a particular tranche at the time of its launch and is payable semi-annually.
Tenor:
The tenor of the bond will be for a period of 8 years with an exit option from 5th year
onwards to be exercised on the interest payment dates.
Redemption:
Redemption price shall be fixed in Indian Rupees and the redemption price shall be based
on simple average of closing price of gold of 999 purity of previous 3 business days from
the date of repayment, published by the India Bullion and Jewelers Association Limited.

Benefits

37
Hassle free:
Ownership of gold in Demat form, without any physical possession(No risks and no cost
of storage)

Tax treatment:
The capital gains tax arising on redemption of SGB to an individual has been exempted.

Tradability:
Bonds will be tradable on stock exchanges within a fortnight of the issuance on a date as
notified by the RBI.

Valuable collateral:
Bonds can be used as collateral to obtain a loan from banks

Transferability:
Bonds shall be transferable by execution of an Instrument of transfer in accordance with
the provisions of the Government Securities Act.

38
 9.CAPITAL GAIN BOND
Capital Gain Bonds (54 EC) :- According to Section 54 EC of IT Act, any person (Individual,
HUFs, Partnership Firms, Companies etc) can avail exemption in respect of long term Capital
gains (arising from the sale of land or property) , if the capital gain is invested in Capital Gain
Bond. The exemption will be the amount of Capital Gain or the amount of investment made,
whichever is less and has to be availed within six months of the sale of land / property.

Features

Interest rate: 5% per annum

Lock-in-period of 5 years

Maximum investment limit of up to Rs. 50 Lakhs in a year across the four issuers for claiming
54EC benefit.
Issuers for Capital Gain Bonds

PFC (Power Finance Corporation Ltd)

IRFC (Indian Railway Finance Corporation Ltd)

REC (Rural Electrification Corporation Ltd)

Disclaimer - StockHolding acts as facilitator between the investor and issuer for accepting
deposit. Investor are requested to do own due diligence on the mentioned Deposit before
investing in any of them. Please note that StockHolding nor its employees, Directors, Agent,
Subject endorse or certify the information provided by the issuer company and hence is not liable
(legally or otherwise) under any circumstances for the information provided.

39
 10. Non-Convertible Debentures (NCDs)

Non Convertible Debentures (NCDs) are issued by reputed companies having rating of
atleast AA and above. The rate of interest is generally higher as compared to Bank and
Corporate Fixed Deposits.

Benefits

Higher Interest Rate

The tenure can be as low as 1 year and maximum tenure can be 10 years

Security
The NCD can be secured / unsecured which is mentioned during issuance

Ease of Investing
Compulsory on the Demat / ASBA mode.

Taxation
As per applicable tax bracket of the Investor. No Tax Deducted at Source (TDS)

Securities investments are subject to market risks. Please read the Offer
Document/Prospectus, the issue terms and conditions, carefully before taking any
investment decision.

Disclaimer - StockHolding Corporation of India Limited (SHCIL) acts only as a mediator

between its clients and the company inviting/accepting fixed deposits, known as
Principal Company. Neither Stockholding nor its employees, officers or permitted
assigns accept any liability whatsoever, for any direct or consequential loss arising
however from any investment made or otherwise arising in connection herewith.

40
 11.Secondary Market Bonds
The secondary bond market is the marketplace where investors (Individual and Non-
Individual) can buy and sell bonds. These transactions are routed through the stock
exchange platform or through an OTC contract through ICCL / NSCCL.
There are various papers available in the Secondary Market suited to meet every investor
investment requirement like :-

Perpetual Bonds of Banks / Corporates

Public Sector Bonds

Tax Free Bonds

G-secs and State Development Loans (SDL)

Benefits

Higher Interest rate as compared to traditional fixed deposits.

Multiple options available to suit the requirement of the Investor like earning a regular income,
higher (compared to Bank FD Rates) interest or Tax free Income is available for investment.

These instruments carry a fixed rate of interest during the tenure of the bond. However the yield
of these bonds depends on demand and supply for the respective bond in the Secondary Market.

41
Corporate Services:
1. Demat Services for Business
2. CSGL Services (Government Bond)
3. Trading Accounts
4. NPS Accounts
5. Bullion (Gold and Silver)

Demat Services For Business:

Join Demat Account:

For Trust registered under the Public Trust Act 1860/ Societies Registration Act/
Bombay Public Trust Act/ Public Trust Act in force in the state open a demat account
in the name of the trust.

Nominee Shareholders:

Open a Demat account for nominee shareholder holding jointly with the holding
company. The account also allows for conversion from physical to demat.

Partnership Firm/ Limited Liability Partnership:

Opening of Demat account only in the names of partners and operated by the
partners for safe keeping of securities that belong to the Partnership Firm. Facility to
open Limited Liability Partnership Firm Demat account in the name of the LLP.

Corporate/ Overseas Body Corporate

Seamless account opening for Banks/ Institutional Investors/ Foreign Institutional

Investors (FIIs).
Government Bodies:

Expertise in opening of Government Bodies Demat account with many such accounts
already making Stock Holding one of the leading Depository participant to hold such
accounts.

Escrow:

42
 The account should be opened in the name as mentioned in the scheme, which is
approved by competent authority and is in accordance with SEBI regulations.
Further the operation of such account should be governed by the terms and
conditions of escrow agreement.

Unclaimed Dividend:

The Demat account will be opened in the name as- Unclaimed Suspense Account and
the demat account will only be used for specified purpose.

Unlisted Physical Conversion/ ISIN Creation:

Especially if you are an unlisted company wanting to transact in your physical

shares, opening a Demat Account with us will make it happen faster and includes
ISIN creation as well.

BENEFITS

• Dedicated Corporate Team

We have a team that is committed to helping you open your corporate Demat
Account.

• Customized Transactions

We make it possible to customized transaction uploads and report options.

• Digital Convenience

Online transaction facility is facilitated through our unique product – Transnet.

CSGL Services (Government Bond)

43
 Stock holding helps Banks, Corporates, PF Trusts, Individuals, State Governments,
NRIs, OCBs, and FIIs to open a Constituent Subsidiary General Ledger (CSGL)
account to facilitate investments in Government Securities and treasury bills.

BENEFITS:

• Safe:

Investment in Government Securities and Treasury Bills under the strict guidelines
of the Reserve Bank of India.

• Quick Payments:

Periodic coupon payments are automatically credited to the SB/CD account of

constituents. Securities are credited to the gilt account on the value date of purchase/
allotment. Delay in transfer of securities fully eliminated. Periodic interest and
redemption amount are credited to the fund account on due dates.

• Peace of Mind:

No risk of theft, fraud, misappropriation or loss as the holdings are in DEMAT form.
Statement of balance is available on demand. Delivery and settlement is guaranteed
by CCIL.

Trading Accounts:

At stock holding we support your company’s need to participate in the Capital

Market. To make this happen seamlessly, we bring you the widest range of trading
facilities and investment opportunities across various market segments with strong
research backing. Our trading services can be accessed by opening an account that
has been hardcoded to customized tariffs.

44
 Equity Trading:

Stock Holding facilitates equity and commodity trading through various exchanges.
Our clients can choose from a variety of service channels specially designed to suit
customer requirements. Our offering ranges from the service through branch channel
as also call-ntrade, online trading, trading through mobile app, etc. we at Stock
Holding ensure that clients have adequate means and proper resources for trading
in Capital Market. Our customer friendly trading systems, attractive tariffs and well
researched stock recommendations help in enriching the client experience.

Derivative Trading:

Stock holding facilitates derivative trading for its clients and has an exclusive
derivative desk. Our certified analyst and top class information system help you in
understanding the market trends and take suitable actions either to hedge the market
position or to take fresh position in the derivative market.

BENEFITS:

• Insightful Research:

We provide perspective and fundamental research on several stocks across sectors.

• Expert Advice:

Our stock market experts are always focused on a client’s needs with innovation and
userfriendly solutions.

• Multiple Platforms:

We help you in accessing multiple platforms that enable seamless execution of

complex trades across multiple market segments.

45
• Thinking Beyond:

We have an exclusive derivative desk which offers services on various derivatives

like currency, interest, commodities and cash.

• Online Convenience:

Our robust trading platform is accessible for all kinds of digital devices and is easy
to access from devices ranging from a PC to a mobile allowing end-to-end online
trading experience.

NPS ACCOUNTS:

NPS corporate model provides a platform for the employers to extend the old age
social security benefits to their employees and co-contribute for their pension.
Employers get tax contribution to the employees NPS account. Furthermore,
employees will get additional tax benefit of Rs.50000/- on their tax.

Eligibility:

A. Entities registered under companies act and various co-operative acts.

B. Central public sector enterprises
C. State public sector enterprises
D. Registered partnership firm and limited liability partnership (LLPs)
E. Anybody incorporated under any act of parliament or state legislature or by
order of Central / State Government.
F. Proprietorship Concern
G. Trust/ Society

BILLION (GOLD AND SILVER)

Stock holding provides Billion coins minted by MPIPL – India’s first and only
refinery to have LBMA accreditation. We offer a comprehensive bouquet of previous
metals for all consumers for investment, gifting, collectibles and awards.

46
 Gold:

Corporates can buy bullion coins for employee’s incentives, target achievement,
gifting on retirement and company foundation day. Individuals can buy bullion
coins for investment/ collectibles or gifting.

Certified coins of 999.9 purity available in various denominations of 1gr, 2gr, 5gr,
10gr, 20gr, 50gr, 100gr oval pendants in 2.65gr.

The full Sovereign:

The full sovereign is the only authentic sovereign in India. The Sovereign is the
flagship coin of the Royal Mint, UK and the most tightly specified 22 carat gold coin
in the world. MMTC PAMP India having exclusive license from Royal Mint to
manufacture the sovereign.

Feature:

a) Sovereign made in fine gold of 916.7 purity.

b) Sovereign coin minted in India by MMTC PAMP is distinguished by the “I”
mintmark above its year of manufacture.
c) Sovereign comes in tamper proof packaging – ideal for gifting.

BENEFITS

➢ Certified:

The sovereign has been certified by the British Royal Mint for 7.98805g weight,
91.67% gold and 22.05mm diameter.

➢ Unique Mark:

The genuine sovereign comes with a unique mint-mark “I” just above the year of
minting on each coin manufactured in India.

➢ Tamperproof Seal:

Comes in a sealed international packaging with a certificate and unique serial

number.

47
Custodial Services:

Custodial services include any safekeeping, administration, transaction and further

activities done on behalf of a company by its custodian, and include:

➢ Fund Accounting
➢ FDI (Foreign Direct Investment)
➢ Company Valuation
➢ Vaults
➢ Customized Reporting
➢ Electronic and Physical Safekeeping Services Clearing and Settlement Services.

48
 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

49
CUSODIAL SEGMENT:

Since its commencement in 1988 as the first dedicated Custodian in the country, SHCIL
has been providing Custodial Services of international standards to Domestic Mutual
Funds, Financial Institutions and Foreign Institutional Investors

With almost 70% of the Institutional business in its fold, SHCIL has evolved over the
times to meet the changing requirements of dynamic markets and demanding clients.

A dedicated pool of trained and highly experienced professionals work literally

round the clock on state of the art computer systems, dedicated communication
channels, well connected to Client institutions, Stock Exchanges, Clearing houses,
Depositories and leading Institutional brokers. In terms of collective man-years,
SHCIL has the most experienced team in the entire Industry.

COMPETITORS OF SHCIL IN MUMBAI

Following are the various competitors of the SHCIL

• ICICI DIRECT
• KOTAK SECURITIES
• MOTILAL OSWAL
• HDFC
• ANAND RATHI FINANCIAL SERVICE LTD
• KARVYA SECURITIES
• SHARE KHAN
• INDIA BULLES
• OTHER LOCAL AGENCIES

Major Competitors

• ANAND RATHI FINANCIAL SERVICE LTD

• KOTAK SECURITIES
• MOTILAL OSWAL
• ICICI DIRECT

50
FRAMEWORK FOR THE COMPETITIVE ANALYSIS:-

ANALYSING THE COMPETITORS STRENGTH & WEAKNESS:

Competition, being an important market force needs to be tracked, analyzed & preempted.
Market leader always have a system to help them preempt any competitive moves. For
this, it is not just important to know competitor by name, but also critical to understand it’s
major strength & weaknesses. A competitor s strength may be its marketing systems,
aggressive sales force, and its relationship with major external environmental variables like
government & financial institute or a financial resources base. For the effective competitive
analysis only strength & weaknesses are not sufficient we need to consider other key factors
like market share of the company.

COMPETITATIVE ANALYSIS

“YOU MAY BE GOOD BUT IF YOUR

COMETITORS ARE BETTER THEN YOU
NEED TO
CHANGE”

STRENGTH AND WEEKNESS

SHCIL:

Strength:
• SHCIL was incorporated under the companies’ act 1956 at the imitative of the
government of India
• SHCIL is promoted by the all India financial and investment institutions and
insurance companies, viz. IDBI, UTI, ICICI, IFCI, LIC, GIC and its subsidiaries.
SHCIL is the oldest DP service provider.
• Largest number of DP A/C s operations carried by SHCIL.

51
Weakness:
• Price factor affects customer satisfaction many more Times.
• Number of unsatisfied customers is increasing day by day.

ANAND RATHI FINANCIAL SERVICES

Strength:

• Clients deal with a relationship manager who leverages and brings together the
product specialists from across the firm to create an optimum solution to the client
needs.
• AR brings together a highly professional core management team that comprises of
individuals with extensive business as well as industry experience.

Weakness:
• The name of the organization ANANDERATH indirectly indicates that it belongs to
an individual.
• Small range of product line.

MOTILAL OSWAL
Strength:
• The organization finds its strength in its team of young, talented and confident
individuals. Qualified professionals carry out different functions under the able
leadership of its promoters, Mr. Motilal Oswal and Mr. Raamdeo Agrawal. Stringent
employee selection process, focus on continuous training and adoption of best
management practices drive the quest to achieving their core purpose and values.
• Motilal Oswal having strong fund management.

Weakness:
• The name of the organization MOTILAL OSWAL indirectly indicates that it belongs
to an individual.

52
KOTAK SECURITIES
Strength:
• Kotak Securities has 195 branches servicing more than 2, 20,000 customers and a
coverage of 231 Cities.
• Largest distributor of IPO's.
• Kotak securities having strong equity research and portfolio management.

Weakness:
• Kotak group is basically known for their banking services as their core business.

ICICI DIRECT
Strength:
• The 3-in-1 account integrates your banking, investment and demat accounts.
• ICICI direct comes from ICICI, the organization trusted by millions of Indians.
• More flexible than other service provider.
• Known for more efficient management.

Weakness:
• Kotak group is basically known for their banking services as their core business.
• Comparatively high charges.

COMPARITIVE ANALYSIS ON THE BASIS OF SEVICE MARKETING

Product:

We are well aware of the fact that services product are found intangible nature. It
includes, physical goods features, quality level, accessories, packaging, warranties,
product line and branding.
Therefore now we have focused on the depository services (demat & broking). And
all the competitors of SHCIL provides same products with the same product line so
here no significant difference between provided services so there no need to compete
in between SHCIL and other major competitors in this factor.

53
 Price:

This element of marketing mix is related to the decision influencing the fee
structure includes, A/C opening charges, AMC, Transfer fee, Brokerage
charged by service providing organization.

Analysis on the basis of secondary data is as follows.

SERVICES PROVIDERS

ELEMENTS SHCIL
ANAND KOTAK MOTILAL ICICI
RATHI SECURITIES OSWAL DIRECT

A/c Opening 399 750 0 0 0

AMC 229 300 300 300 500

Margin Money Min 5000 25000 Min 25000 Min 10000 Min 20000

54
 SERVICE PROVIDERS
ICICI DIRECT 500
0
MOTILAL OSWAL 300
0
KOTAK SECURITIES 300
0
ANAND RATHI 300
750
SHCIL 229
399
0 100 200 300 400 500 600 700 800
CHARGES

AMC A/c Opening

➢ With the help of above analysis it is found that SHCIL’s Account Opening Charges
are competitive in nature, where account opening charges of Anand Rathi is highest.
While others promoted a scheme in which they open an account in zero.
➢ On the basis of above AMC analysis it is found that annual charges SHCIL is
comparatively lower than competitors.

Brokerage:

BROKERAGE
MIN MAX
SERVICE
PROVIDER

SHCIL 0.1% 0.2%

Anand Rathi 0.5% 0.15%

Kotak Securities 0.49% 0.49%

Motilal Oswal 0.5% 0.50%

ICICI Direct 0.55% 0.275%

55
 BROKERAGE
ICICI DIRECT 0.0275%
0.55%

MOTILAL OSWAL 0.50%

0.05%

KOTAK SECURITIES 0.49%

0.49%

ANAND RATHI 0.15%

0.05%

SHCIL 0.02%
0.01%

0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60%

MAX MIN

By analyzing the above schedule and bar graph we come to know that SHCIL’s charges for
trading is competitive in the market. It is also found that ICICI Direct charges maximum
amount of trading. On the other hand it is also found that SHCIL charges minimum amount
of trading. Though SHCIL is well in this factor so they can attract more customer.

Place:
Another important element of marketing is place which focuses attention on the
offering of services by the provider to the customer & the place of location for the
service generating organizations.
In this factor the location is preferred at the point where we find some of the essential
features such as easy and convenient accessibility, safety and protection, availability
of the infrastructure facilities etc.
We can’t neglect that these features make available to the branches. The location
advantage which simplify the task of marketing effectively.

Distribution Analysis:

In this damnation of the analysis we found that SHCIL have Nine Hundred Twenty
Customer Support Branches in all over the India.

And other competitors having following numbers of Customer Support Branches in

all over India shown in the following table.

56
 SERVICE PROVIDER NO. OF BRANCHES

SHCIL 920

ANAND RATHI 120

KOTAK SECURITIES 160

MOTILAL OSWAL 85

ICICI DIRECT 226

NO.OF BRANCHES
920

226
120 160 NO.OF BRANCHES
85

By analyzing the above data we found that as compared to competitors SHCIL have
maximum number of branches which is great thing.

Promotion:

57
 Sales do not occur automatically to be more specific in the business environment
where we find the intensity of competition moving upward, it is not possible to go
and remain at for the long time to come, unless we prepare the ground or set the stage
for future expansion & evolve new ideas for creating favorable selling conditions. It
is sales promotion which is backs up pre selling & stimulates the impulsion buying.
It attracts the prospects & keeps moving the existing customers behind the product.

Promotional Analysis:

SHCIL:

In the period of two month of summer project we found SHCIL s promotional

activities are as follows.
➢ SHCIL offers combo pack scheme i.e. DP account and Trading account, both in
Rs.550/- only
➢ A trading account holders get the facility of opening a saving account with UTI
bank with the minimum balance of Rs.500/- where normally charged minimum
balance Rs.5000/-
➢ It also provides corporate account at competitively less charges (i.e. Rs.550/-
only).

ANAND RATHI:

➢ Maximum number of advertising hoardings found in India in well located

areas.
➢ Attractive punch line “Behind Every Successful Investor”.
➢ Believe in advertising in local newspaper and electronic media.

KOTAK SECURITIES:

➢ Kotak offers saving bank account of Kotak Mahindra bank with DP account.
➢ Using attractive punch line “Think Investment, Think Kotak”. Heavy
advertising strategy in print and electronic media.

MOTILAL OSWAL:
58
 ➢ Attractive punch line “Solid Research, Solid Advice”.
➢ Advertisement hoardings found in main commercial areas. Motilal Oswal
publishes business review.

ICICI DIRECT:

➢ Offers bank account with trading and demat account.

➢ Offers a scheme of account opening at Rs.0/-.
➢ Account holder gets insurance of Rs.100000/-.

ANALYSIS

By analyzing the above data we found that SHCIL has lagging behind comparing to
their competitor in the essential element of promotion.
Where ANAND RATHI & KOTAK SECURITIES believe in More Promotion More
Sales. Though they entered recently in the market compared to SHCIL they are well
established in the market & competing toughly because of their rational promotional
activities.

People:

All human actors who plays the part in service delivery and thus influence the buyers
perception manly the firms personnel the customer and the other customers in service
environment.
How these people are dressed their personal appearance & their attitudes & behavior
all influence the customer s perception of the service. Stock Holding Corporation Of
India Ltd hires quality people and they are trained the technical skill which are using
in organization. On the other hand competitors provide the technical knowledge time
59
 to time and make them aware about up going competition. In addition to that
damnation competitor has made the completion of formal dress code to their executive
and employees, which indicates discipline to their duties.
The environment in which the services are delivered and where the firm and customer
interact and any tangible components that facilitate performance or communication of
services. The physical evidence of services includes all the tangible representation of
the service. Such as broachers, latter head, business card, report format and etc.

SHCIL provides following thing to their customer:

➢ Monthly Fact Sheet
➢ Demat Letter
➢ Annual Report Demat Kit etc.
And other competitor also provides the same kind of physical things. So it is not better
to compete in between this dimension of service marketing mix.

Process:
The actual procedure, mechanism and the flow of activities by which the - services
delivered and operating systems.
The actual delivery steps the customer experiences, or the operational flow of services
will also provide customer with evidence or which to judge the service.
By analyzing the process model of SHCIL and its competitors we analyze following
process model dimensions.
I. Time Taken for Account Opening
II. Technology Employed
III. Order Processing
IV. Settlement of Claim

• Time Taken for Account Opening

A) SHCIL:-
It takes minimum 2 days to open an account and week to get it activated
B) ANAND RATHI:-
This firm takes 1 to 2 days for activation.
C) KOTAK SECURITIES and ICICI DIRECT and MOTILAL OSWAL take nearly
60
 3 days to open and get it activated.

• Technology Employed

SHCIL uses intranet technology by which they are interconnected with each other all
over India. Company offers personal e-mail a\c to all the employees so they can
connect with each other, which help to solve the problem quickly as possible.
And the competitor s uses highly advanced technology like, online trading by
assembling trading software with customer at home. They installed live update
displays of stock exchange. They provide facility like, hot tips regarding buy and sale
of stock with the help of group SMS software.

• Order Processing

In SHCIL customer place their order by phone and personally. For security purpose
every customer by their pin number.
Competitor also provides the same kind of service and additionally they provide
online trading.

• Settlement of Claim
As per the norms, SHCIL settles the claims in T+2. And if anyone having the account
in UTI bank claim settles before T+1.
Anand Rathi and Motilal Oswal also settle the claim in T+2 period. While ICIC
Direct.com & Kotak Securities settle within the short span of time, because they are the
bank themselves.

ANALYSIS ON THE BASIS OF MARKET SHARE:

The term market share means contribution of the organization in the total competitive
market. This acquires the particular part of the market. Market share of any organization
shows it stability in the competition it helps to create the prospects on the basis of present
position. Large market share helps to dominate the market which results awareness about
the organization in the minds of people on the basis of present market share. It is convenient
to decide their target regarding sells, advertising and marketing strategy.

61
 PRESENTING THE 26TH ANNUAL REPORT OF SHCIL:

PRESENTING THE 26TH ANNUAL REPORT OF SHCIL:

Board of Directors (as on July 23,2021)

Ramesh N.G.S. - Non - Executive Chairman
G. Anantharaman
D. C. Jain
Amit Dassi
Sarala Menon
Sanjay Pote - Managing Director & CEO
Rajneesh Singh - Company Secretary
Hemang Ladani - Chief Financial officer
Statutory Auditors - Laxmi Tripti & Associates, Chartered Accountant, Mumbai
Internal Auditors - Kochar & Associates, Chartered Accountants, Mumbai
Concurrent Auditors - PF Sridhar & Santhaman, LLP Chartered Accounts,
Mumbai
Compliance Auditors - Mehta Sanghvi & Associates, Chartered Accountants,
Mumbai
Secretarial Auditors - D.A. Kamat & Co., Practicing Company Secretary,
Mumbai
Registered Office - SHCIL House, P-51, T.T.C. Industrial Area,
MIDC, Mahape, Navi Mumbai 400 710
CIN NO: U65990MH1995GOI085602
Tel: 91 - 22 6177 8600 Fax: 91-22 6177 8609

62
 Directors’ Report
To the Members,
Your Directors are pleased to present the Twenty Sixth Annual Report of your Company
along with the Audited Statement of Accounts for the financial year ended March 31,
2021.

Financial Performance
During the year ended March 31, 2021, your company earned gross total income of
`9574.42 lakhs which was higher by 80% as compared to previous year. The Profit after
tax was `1715.38 lakhs registering a growth of 186% as compared to previous year. The
financial results are summarized below:
(`In lacs)
Particulars 2020-21 2019-20
Total Income 9574.42 5304.90
Total Expenditure 7265.57 4658.52
Profit/ (Loss) 2308.85 646.38
Before Tax
Profit/ (Loss) After 1715.38 600.48
Tax
Total 1717.85 593.37
Comprehensive
Income
Net Worth 7922.00 6935.00
Book Value per 130.09 113.88
Equity Share (`)
Earnings per share 28.17 9.86
(`)
Dividend
Your Company has performed well during the year and considering the good
performance the Board had approved and paid an 1st interim dividend of `3/- per equity
share (30%) and 2nd interim dividend of `5/- per equity share (80%) on face value of
`10/- each to its shareholders.

The Board of Directors are pleased to recommend a final dividend of `8 per equity share
(80%) of face value of `10/- making the total dividend of `16/- (160%) on the face value
of `10/- each for the financial year ended March 31, 2021. The dividend payment is
subject to approval of members at the ensuing Annual General Meeting.
Transfer to reserves
The Company does not propose to transfer any amount to the general reserve. An amount of
`1717.85 lakhs is retained in the Profit & Loss Account.
63
 Economic and capital market developments
After a 3.5 percent contraction due to the COVID-19 pandemic in the year 2020, global
economic activities have gained significant momentum; though, it remains well below
pre-pandemic projections. Economic recoveries are diverging across countries and
sectors, reflecting variation in pandemic-induced disruptions and the extent of policy
support.
Growing vaccine campaigns have lifted global sentiments; however as per World Bank,
in spite of recovery; global output will be about 2 percent below pre-pandemic
projections and the per capita income losses will not be unwound by 2022 for about two-
thirds of emerging market and developing economies. Among low-income economies,
where vaccination has lagged, the effects of the pandemic have increased the challenges
and insecurity.
Despite continued waves of infection, the impact of the virus and associated lockdown
measures on economic activity are diminishing in most countries in the globe. The
International Monetary Fund (IMF) has projected worldwide growth at 6% in 2021,
moderating to 4.4% in 2022. While recent vaccine has raised hopes of a turnaround in the
pandemic later this year, renewed waves and new variants of the virus pose concerns for
the outlook.

Indian economy grew at 1.6 percent in the last quarter of FY2020-21, recording a slight
pickup in GDP growth amid the Covid-19 second wave. In the full fiscal year, the
economy shrank -7.3 percent due to the Covid-19 pandemic. In the financial year 2020-
21, India attracted the highest ever total Foreign Direct Investment (FDI) of $81.72 billion,
around 10 percent higher than the corresponding financial year of 2019-20, when the
inflows were recorded at $74.39 billion.
On the capital market front, the equity market in India made a V-shaped recovery in line
with the global markets on the back of massive monetary stimuli and the gradual easing
of lockdown-like restrictions. The Sensex gained 91 percent from its post-pandemic lows
during 2020-21. The total market capitalization of BSE-listed companies scaled to a
record level of `204.3 lakh crore at the end of March 2021 which is an increase of 80%
over `113.5 lakh crore at the end of March 2020. There has been a tremendous surge in
IPOs listing in FY2020-21. Foreign Portfolio Investors remained net buyers in the Indian
equity market with November-2020 witnessing record inflows of `70,896 crores. The
Indian equity market has received a net FPI inflow of `2.8 lakh crore in 2020-21, as against
a net FPI outflow of `6,204 crores during the previous year.
The Indian financial system has proved its resilience with time as the Indian markets
have shown quick signs of recovery, positively impacting the general global economic
front. Going ahead, movements in the financial market would be guided by progress in
containing the COVID-19 pandemic, through the administration of vaccines, the pace of
recovery of the global and the domestic economies, and developments in global liquidity
and financial conditions.

64
 Operations review
Your Company is in the business of Stock Broking and is a member of BSE- Cash, Equity
Derivatives, Currency Derivatives, NSE-Cash, Equity Derivatives, Currency Derivatives
and MCX commodities segment. The Stock
Broking services are offered to both retail investors and

institutional clients. To achieve better growth and improve its product offering your
company has taken Depository Participant license of Central Depository Services India
Limited (CDSL) and also applied for Depository Participant license with National
Securities Depository Limited (NSDL). Your company has also applied for the Portfolio
management services (PMS) registration with Securities and Exchange Board of India
(SEBI).
Your company is constantly upgrading its Online & Mobile Trading Platform, and is also
in process of further investing in the overhauling Back-Office by shifting to advanced
software which has additional features to improve customer experience and streamline
the processes. With the improved trading & operation platforms, your Company is
actively looking to enhance the business through its StockHolding, Alternate Channel
Partners in the Retail space and Foreign Portfolio Investors in the Institutional space.

Business Profitability
It is difficult to assess the magnitude of impact of COVID-19, however due to surplus
liquidity in global markets, large retail participation and increase in stock market
transactions in the Capital markets and with help of digital initiatives, the PAT of
your Company was up by impressive 186%. Your company is taking all possible
measures to generate businesses using digital means, cost rationalization and other
measures to lessen the impact of pandemic to the extent possible.

Your Company has shown efficient adaptation and effective resilience to minimize
the impact of this unforeseen business disruption. There was no disruption in
business activities and all the clients were serviced promptly and continuation of
operations & services was ensured.

Number of Meetings of the Board

Regular meetings of the Board and its committees are held to discuss and decide on
various business policies, strategies, etc.

During the year, five Board Meetings were convened and held. The intervening gaps
between the meetings were within the period prescribed under the Companies Act,
2013. The details of meetings of the Board and various Committees of the Board are
given in the Corporate Governance Report.

65
 Balance Sheet
as at March 31, 2021
(Amount in `)
Particulars Note As at As at
March 31, March 31,
2021 2020
ASSETS

I. Financial Assets

(a) Cash and cash equivalents 2 1,305,789,840 1,467,978,970

(b) Bank balances other than (a) above 3 367,800,000 282,148,397
(c) Receivables 4

(i) Trade receivables 1,297,924,541 433,884,189

(d) Investments 5 55,580,919 17,958,439

(e) Other financial assets 6 790,156,661 299,643,603
3,817,251,961 2,501,613,598

II. Non-financial assets

(a) Current tax assets (net) 7 5,927,697 41,100,678

(b) Deferred tax assets (net) 8 5,916,559 11,806,243
(c) Property, plant and equipment 9(a) 9,764,878 11,308,395
(d) Other Intangible assets 9(b) 18,326,960 12,368,120
(e) Other non-financial assets 10 48,509,530 33,493,769
88,445,624 110,077,205
2,611,690,803
Total Assets 3,905,697,585

LIABILITIES AND EQUITY

LIABILITIES

I. Financial Liabilities

(a) Payables 11

(i) Trade payables

- total outstanding dues of micro enterprises and - -

small enterprises
- total outstanding dues of creditors other than micro 2,842,154,934 1,734,566,941
enterprises and small enterprises

66
(ii) Other payables

- total outstanding dues of micro enterprises and - -

small enterprises
- total outstanding dues of other than micro 20,398,790 8,307,635
enterprises and small enterprises
(b) Other financial liabilities 12 152,767,048 93,330,877
3,015,320,772 1,836,205,453

II. Non-financial Liabilities

(a) Provisions 13 3,878,463 3,593,663

(b) Other non-financial liabilities 14 94,300,832 78,402,667
98,179,295 81,996,330

III. EQUITY

(a) Equity Share Capital 15 60,897,030 60,897,030

(b) Other equity 16 731,300,488 632,591,990
792,197,518 693,489,020
2,611,690,803
Total Liabilities and Equity 3,905,697,585

The accompanying notes 1 to 50 are from an integral part of these financial statements

67
 Statement of Profit and Loss
for the year ended March 31, 2021
(Amount in `)
Particulars Note Year ended Year ended
March 31, March 31,
2021 2020
I. Revenue from Operations

(a) Interest income 17 43,644,626 35,353,390

(b) Dividend income 18 2,028,610 6,712,836
(c) Fees and commission income 19 868,863,214 478,837,168
(d) Other operating income 20 7,527,459 7,301,593
I. Total revenue from operations 922,063,909 528,204,987

II. Other income 21 35,377,843 2,285,229

III. Total Income (I+II) 957,441,752 530,490,216

IV. Expenses

(a) Finance costs 22 1,019,345 432,341

(b) Fees and commission expense 23 550,245,633 290,095,652
(c) Impairment on financial instruments 24 4,446,837 29,442,982
(d) Employee benefits expenses 25 62,465,849 53,583,444
(e) Depreciation, amortization and impairment 26 12,466,721 11,558,933
(f) Other expenses 27 95,912,621 80,739,188
Total Expenses 726,557,006 465,852,540

V. Profit/(loss) before tax (III-IV) 230,884,746 64,637,676

VI. Tax expense 28

(a) Current Tax 53,539,446 11,913,760

(b) Deferred Tax 5,806,801 (7,323,969)

59,346,247 4,589,791

VII. Profit/(loss) for the year (V-VI) 171,538,499 60,047,885

68
VIII. Other comprehensive income/(expenses)

(a) (i) Items that will not be reclassified to profit or loss

- Remeasurement of defined employee benefit plans 329,318 (711,213)

(ii) Income tax related to items that will not be (82,883) -

reclassified to profit or loss
Other comprehensive income/(expenses) 246,435 (711,213)

IX. Total comprehensive income/(expenses) for the year 171,784,934 59,336,672

(VII+VIII)
X. Earnings per equity share: 30

(a) Basic (`) 28.17 9.86

(b) Diluted (`) 28.17 9.86

69
 Statements of Change in Equity
for the year ended March 31, 2021

(A) Equity share capital

Particulars No. of shares Amount

(`)
Opening balance as at April 1, 2019 6,089,703 60,897,030
Changes during the year - -
Closing balance as at March 31, 2020 6,089,703 60,897,030

Opening balance as at April 1, 2020 6,089,703 60,897,030

Changes during the year - -
Closing balance as at March 31, 2021 6,089,703 60,897,030

70
 (B)OTHER EQUITY

Particulars Securities premium RetainedTotal

Erng
Opening balance as at April 1, 2019 92,845,447 506,530,145 599,375,592
Addition during the year - 60,047,885 60,047,885
Dividends including dividend distribution - (26,120,274) (26,120,274)
tax
Other Comprehensive income - (711,213) (711,213)
Closing balance as at March 31, 2020 92,845,447 539,746,543 632,591,990

Opening balance as at April 1, 2020 92,845,447 539,746,543 632,591,990

Addition during the year - 171,538,499 171,538,499
Dividends - (73,076,436) (73,076,436)
Other Comprehensive income - 246,435 246,435
Closing balance as at March 31, 2021 92,845,447 638,455,041 731,300,488

71
 Statement of Cash Flow
for the year ended March 31, 2021
(Amount in `)
Particulars Year ended Year ended
March 31, March 31,
2021 2020
A. Cash flow from operating activities

Profit/(Loss) before tax 230,884,746 64,637,676

Adjustments to reconcile profit before tax to net cash flows :
Depreciation, amortization and impairment 12,466,721 11,558,933
Interest Income (39,280,273) (31,888,036)
Interest On Income Tax Refund (5,054,058) (1,272,690)
Dividend from Mutual Funds (2,028,610) (6,712,836)
Interest cost on Lease liability 1,019,345 432,341
Profit on sale of Property, plant and equipment (311,099) -
Reversal of Provisions (739,276) (553,090)
Impairments on financial instruments 4,446,837 29,442,982
Remeasurement of net defined benefit liability 329,318 (711,213)
Operating profit before working capital changes 201,733,651 64,934,067
Working capital adjustments :

(Increase)/ Decrease in other bank balance (85,651,603) 70,913,637

(Increase)/ Decrease in trade receivables (867,747,913) 232,679,474
(Increase)/Decrease in other financial assets (488,186,442) (212,858,013)
Increase/ (Decrease) in other non-financial assets (15,015,761) 2,566,559
Increase/ (Decrease) in trade and other payables 1,119,679,148 695,137,917
(Increase)/Decrease in other financial liabilities 49,651,304 19,580,121
(Increase)/Decrease in provisions 284,800 1,188,755
Increase/ (Decrease) in other non-financial liabilities 15,898,165 23,357,407
Cash generated from operations (69,354,651) 897,499,924
Direct Taxes paid (13,312,407) (10,413,634)
Net cash generated/(used in) from operating activities (A) (82,667,058) 887,086,290
B. Cash flow from investing activities

Purchase of property plant and equipments (2,389,523) (7,739,994)

Sale of property plant and equipments 311,100 -
Purchase of Intangible assets (2,100,000) (9,243,221)
Sale/(Purchase) of Investments (37,622,480) 145,807,717
Dividends from Mutual Funds 2,028,610 6,712,836
Interest Earned 36,953,657 32,833,020
Net cash generated/(used in) from investing activities (B) (2,818,636) 168,370,358

72
C. Cash flow from financing activities

Dividend Paid (73,076,436) (26,120,274)

Repayment of lease liabilities (3,627,000) (3,930,000)
Net cash generated/(used in) from financing activities (C) (76,703,436) (30,050,274)
Net increase/(decrease) in cash and cash equivalents (162,189,130) 1,025,406,374
(A+B+C)
Cash and Cash equivalents at the beginning of the year 1,467,978,970 442,572,596
Cash and Cash equivalents at the end of the year 1,305,789,840 1,467,978,970

73
 CHAPTER -5

CONCLUSIONS

74
 CONCLUSION

On the whole, my project at SHCIL was worthwhile as I got opportunity to learn

a lot about the depository system, it was a wonderful experience and simultaneously
enhancing my knowledge and skills about Stock Market Operations.
I got to know about the process of depository system of Demat, Trading, Mutual
Fund, GOI Bonds, Insurance and National Pension Scheme etc.
One more thing I learned is a good brand is always welcomed over here people
are more aware and conscious for the brand so they are ready to spend some extra
bucks for the quality.
Working on SHCIL and preparing this project was a learning experience and I
shall make immense use of it in my career.

• FINDINGS

I. Most of the people were aware about the Stock Market

II. 40% of Individuals were aware about the Demat Account out of 50%.
III. More Investors have started trading from one year or less that one year
IV. More of the individuals trade occasionally and then individuals trade
frequently.
V. Most of the people were satisfied with Demat service provider.
VI. Over all indicates that the investors are more safe and secured from the
Demat in SHCIL.

• LIMITATIONS

I. The result of the study may not be universally applicable due to regional
constraints.
II. Personal biasness may be included in the research work.
III. The respondents were asked to indicate their true response to the questions
being asked.

75
 CHAPTER 6

SUGGESTIONS/ RECOMMENDATIONS

76
Recommendations:

By analyzing the present scenario SHCIL needs to improve in various factors, so

that they can maintain their position in the competition & increase their market
share.

Following are some recommendations which should be implement.

 As per client response to pricing factor, SHCIL should try to cut off the
prices slightly to maintain their lead.

 There is need to be focus on relation between SHCIL and its customer

which need to minimize the gap by maintaining CRM with efficient
marketing team.

 More regular contact should be making with customer by arranging

seminars and events. To maintain the good relationship with customers
and can be used as a promotional activity.

 Special attention should be given on promotional advertising activities.

 Advance technology should be adopted so that delivery of services can be

gear up.

 Try to satisfy unsatisfied customers.

77
 CHAPTER 7

ANNEXURES

FINANCIAL- 34th Annual Report 2020-2021.

Present the Thirty-Fourth Annual Report of Corporation for the Financial Year
ended March 31, 2021.

Financial Performance

Pursuant to the notification dated February 16, 2015 issued by the Ministry of
Corporate Affairs, SHCIL has adopted the Indian Accounting Standard (Ind AS)
notified under the Companies (India Accounting Standards) Rules. 2015 w.e.f.
April 1, 2016.
During the year, SHCIL earned Profit after Tax (PAT) of Rs.17 Crore as against PAT
of Rs.6 Crore in 2019-20. The Board of Directors has approved the appropriation of
net profit as given under.

Particulars March 31,2021 March 31,2020

Total Assets 3,90,56,97,585 2,61,16,90,803
Profit before Tax 2,30,884,746 64,637,676
Provision for Tax 53,539,446 11,913,760
Provision for Deferred 5,806,801 -7,323,969
Tax
Profit after Tax (a) 17,15,38,499 6,00,47,885
Earning equity per share 28.17 9.86

closing balance of equity 6,08,97,030 -

share capital
closing balance of other 73,13,00,488 -
equity
78
 CHAPTER 8

REFERENCES/BIBLIOGRAPHY

I. WEBLINK/WEBSITE:

 www.google.com

 www.stockholding.com

 www.shcilservices.com

 www.taxguru.in

 en.wikipedia.org

 https://corporate.stockholding.com/

79