A project report on

&

Submitted in the partial fulfillment Of the Requirement

For The Award Of Degree Of MASTER OF BUSINESS ADMINISTRATION

Submitted by:-
GEETA VERMA

Submitted to:
Mrs. PREETI SRIVASTAVA
(FACULTY GUIDE)

SAGAR INSTITUTE OF TECHNOLOGY & MANAGEMENT

BARABANKI

1
 PREFACE
The First hand experience that I have gained from the Banking Sector has

given me immense confidence, to work with full cooperation with any

Department. I am also grateful and convey my sincere thanks to the support

staff there, for the kind support extended during the completion of my

Research. I would also like to acknowledge the support and help from some

of the Financial Consultants, from whom I’ve tried to learn the practical

aspects of this industry.

2
 ACKNOWLEDGEMENT

I would like to express my sincere gratitude and thanks to the PROF.

K.K.MISHRA (H.O.D.) Department of Business Administration) for his

invaluable Guidance, immense patience and for his constant encouragement

during the Research.

The First hand experience that I have gained from the Banking Sector has

given me immense confidence, to work with full cooperation with any

Department. I am also grateful and convey my sincere thanks to the support

staff there, for the kind support extended during the completion of my

Research. I would also like to acknowledge the support and help from some

of the Financial Consultants, from whom I’ve tried to learn the practical

aspects of this industry.

I would also like to thank my sincere gratitude and thanks to

Mrs. Preeti Srivastava (faculty of Department of Business

Administration)

(GEETA VERMA)
MBA IInd year

3
CONTENT PAGE No.

Acknowledgement 3

Chapter- 1 Company profile 4

Chapter-2 Introduction about Demat 8

Chapter-3 Objective of the project 28

Chapter-4 Methodology 30

 Section A- Details of ICICI Demat Services 36

 Section B- Details of IDBI Demat Services 44
 Section C- Which is better? ICICI or IDBI 57

Chapter-5 Analysis in the Project 61

Chapter-6 Finding in the Project 63

Chapter-7 Conclusion of the Research 78

 Appendixes 86
 Questionnaires 87
 Bibliography 90

4
EXECUTIVE SUMMARY

TOPIC; Comparative Analysis Of ICICI& IDBI BANK

(Demat Account)

RESEARCH OBJECTIVE:

The objective of this research is as follows: -

 To know the functioning of stock exchange (Stock market).

 To know, how the stockbrokers earn profit by providing services

to the investors.

 To study that which type of opportunity looking by stock brokers

in coming years.

 To find out new avenues of opportunity of stock broking

companies

5
 RESEARCH METHODOLOGY

Research design

Descriptive research design includes survey & fact findings

inquiries of different kinds. The major purpose of descriptive research is

description of state of affairs as it exits at present.

Sample design : Simple random sampling

Simple random sampling also known as probability sampling

Under this sampling design every item of universe has an equal chance of

inclusion in sample. It is say to a lottery method.

Collection of Data

Primary data – Questionnaire

Secondary Data –Newpaper, website ,magazine

Sample size : - The sample size of research study is 60

6
 CHAPTER – 1

COMPANY PROFILE

7
 ICICI BANK

The Industrial Credit & investment corporation of India limited was

introduced on 5th January 1995 as a public limited company under the

Indian companies & subsequently renamed ICICI limited with effect

from 11th sept. 1955.

In 1994, the bank set up an in-house training institute at pune which

was inaugurated on 13th Oct. to case of the long time training needs

of the employees of all the company’s in ICICI group at various level.

It has been admitted as the 18th Depository Participant during the

week ended 22nd Feb. 1997.

In 1999, ICICI, the 2nd largest financial institution, has proposed a

yearly commission not exceeding 1% of net profit to its non-whole

time directors.

ICICI bank, the first commercial bank from India to get its stock listed

on NYSE in the year 2000.

8
 IDBI BANK

Set up under an Act of Parliament as a wholly owned subsidiary of

Reserve Bank of India. February 1976: Ownership transferred to

Government of India. Designated Principal Financial Institution for

coordinating the working of institutions at national and State levels

engaged in financing, promoting and developing industry. March

1982: International Finance Division of IDBI transferred to Export-

Import Bank of India, established as a wholly-owned corporation of

Government of India, under an Act of Parliament. December 1993:

Set up IDBI Capital Market Services Ltd. as a wholly-owned

subsidiary to offer a broad range of financial services, including Bond

Trading, Equity Broking, Client Asset Management and Depository

Services. IDBI Capital is currently a leading Primary Dealer in the

country. August 2000: Became the first All-India Financial Institution

to obtain ISO 9002:1994 Certification for its treasury operations. Also

became the first organisation in Indian financial sector to obtain ISO

9001:2000 Certification for its forex services. September 2004:The

new entity "Industrial Development Bank of India" was incorporated

on September 27, 2004 and Certificate of commencement of

business was issued by the Registrar of Companies on September

9
28, 2004.January 2005:The Board of Directors of IDBI Ltd., at its

meeting held on January 20, 2005, approved the Scheme of

Amalgamation, envisaging merging of IDBI Bank Ltd. with IDBI Ltd.

Pursuant to the scheme approved by the Boards of both the banks,

IDBI Ltd. will issue 100 equity shares for 142 equity shares held by

shareholders in IDBI Bank Ltd. EGM has been convened on February

23, 2005 for seeking shareholder approval for the scheme.

10
 CHAPTER – 2

INTRODUCTION ABOUT DEMAT

 Introduction
 Savings
 Bank Accounts
 Trading
 Settlement
 Charges

11
2.1: INTRODUCTION

2.1(a): Dematerialized Trading

Indian investor community has undergone see changes in the past

few years. India now has a very large investor population and ever
increasing volumes of trades. However, this continuous growth in
activities has also increased problems associated with stock trading.
Most of these problems arise due to the intrinsic nature of paper
based trading and settlement, like theft or loss of share certificates.
This system requires handling of huge volumes of paper leading to
increased costs and inefficiencies. Risk exposure of the investor due
to this trading in paper.

Some of these risks are:

1.Delay in transfer of shares.

2.Possibility of forgery on various documents leading to bad
deliveries, legal disputes etc.
3.Possibility of theft of share certificates in the market.
4.Multiplication or loss of share certificates in transit.
5.Prevalence of fake certificates in the market.

The physical form of holding and trading in securities also acts as

a bottleneck for broking community in capital market operations.

The introduction of NSE and BOLT has increased the reach of capital

12
market manifolds. The increase in number of investors participating in
the capital market has increased the possibility of being hit by a bad
delivery. The cost and time spent by the brokers for rectification of
these bad deliveries tends to be higher with the geographical spread
of the clients. The increase in trade volumes lead to exponential rise
in the back office operations thus limiting the growth potential of the
broking members. The inconvenience faced by investors (in areas
that are far flung and away from the main metros) in settlement of
trade also limits the opportunity for such investors, especially in
participating in auction trading. This has made the investors as well
as broker wary of Indian capital market. In this scenario,
dematerialized trading is certainly a welcome move.

2.1(b): What is Dematerialization?

Dematerialization or “Demat” is a process whereby your securities

like shares, debentures etc, are converted into electronic data and
stored in computers by a Depository. Securities registered in your
name are surrendered to depository participant (DP) and these are
sent to the respective companies who will cancel them after
“Dematerialization” and credit your depository account with the DP.
The securities on Dematerialization appear as balances in your
depository account. These balances are transferable like physical
shares. If at a later date, you wish to have these “Demat” securities
converted back into paper certificates; the Depository helps you to do
this.

13
Dematerialization is the process of converting the securities held in
physical form (certificates) to an equivalent number of securities in
electronic form and crediting the same to the investor’s Demat
account. Dematerialized securities do not have any certificate
numbers or distinctive numbers and are dealt only in quantity i.e.; the
securities are fungible.

Dematerialization of your holdings is not mandatory. You can hold

your secure Demat form or in physical form. You can also keep part
of your holdings (in the same script) in Demat form & part in physical
form. However, securities specified by SEBI can be delivered only in
Demat form in the stock exchanges connected to NSDL and / or
CDSL.

2.1(c): What is Depository?

Depository functions like a securities bank, where the dematerialized

physical securities are traded and held in custody. This facilitates
faster, risk free and low cost settlement. Depository is much like a
bank and performs many activities that are similar to a bank.
Following table compares the two.

Bank Depository
Holds funds in accounts Holds securities in account
Transfers funds between Transfers securities between
accounts accounts
Transfers without handling Transfers without handling
money securities

14
Safekeeping of money Safekeeping of securities

2.1(d): NSDL and CDSL

At present there are two depositories in India, National Securities

Depository Limited (NSDL) and Central Depository Services Limited
(CDSL). NSDL is the first Indian depository; it was inaugurated in
November 1996. NSDL was set up with an initial capital of US$28mn,
promoted by Industrial Development Bank of India (IDBI), Unit Trust
of India (UTI) and National Stock Exchange of India Ltd. (NSEIL).
Later, State Bank of India (SBI) also became a shareholder.

The other depository is Central Depository Services (CDS). It is still in

the process of linking with the stock exchanges. It has registered
around 20 DPs and has signed up with 40 companies. It had received
a certificate of commencement of business from SEBI on February 8,
1999.

These depositories have appointed different Depository Participants

(DP) for them. An investor can open an account with any of the
depositories DP. But transfers arising out of trades on the stock
exchanges can take place only amongst account-holders with NSDL’s
DPs. This is because only NSDL is linked to the stock exchanges
(nine of them including the main ones-National Stock Exchange and
Bombay Stock Exchange).

In order to facilitate transfers between investors having accounts in

15
the two existing depositories in the country the Securities and
Exchange Board of India has asked all stock exchanges to link up
with the depositories. SEBI has also directed the companies’ registrar
and transfer agents to effect change of registered ownership in its
books within two hours of receiving a transfer request from the
depositories. Once connected to both the depositories the stock
exchanges have also to ensure that inter-depository transfers take
place smoothly. It also involves the two depositories connecting with
each other. The NSDL and CDSL have signed an agreement for inter-
depository connectivity.

2.1(e): What is a DP?

A depository is like a bank where securities are held in electronic

(dematerialized) form. In India, there are two Depositories – National
securities Depositories Limited (NSDL) and Central Depository
Services Limited (CSDL).
Under the Depositories Act, investors can avail of the services of the
Depositories through Depository Participants (DP) such as ICICI
bank. DP’s are like bank branches wherein shares in physical form
need to be deposited for converting the same to electronic (Demat)
form.

NSDL carries out its activities through various functionaries called

business partners who include Depository Participants (DPs), issuing
corporate and their Registrars and Transfer Agents, Clearing
corporations/Clearing Houses etc. NSDL is electronically linked to

16
each of these business partners via a satellite link through Very Small
Aperture Terminals (VSATs). The entire integrated system (including
the VSAT linkups and the software at NSDL and each business
partner’s end) has been named as the “NEST” [National Electronic
Settlement & Transfer] system.

The investor interacts with the depository through a depository

participant of NSDL. A DP can be a bank, financial institution, a
custodian or a broker.

Just as one opens a bank account in order to avail of the services of

a bank, an investor opens a depository account with a depository
participant in order to avail of depository facilities.

2.2: SAVINGS
Trading in dematerialized shares results in
substantial savings for the investors. Following tables gives an idea
about these savings.

Savings for a person who buy shares for long term investment

(On a purchase of Rs10000)

Physical Depository (demat) Savings

Item
(Rs) (RS) (Rs)
Brokerage 75-100 50-75 25-50
*Stamp Duty 50 - 50
Postal Charges 10-30 - 10-30
Company Objection 10-30 - 10-30

17
(courier etc.)
Settlement charges - 5-10 -(5-10)
#Custody (5 years) - 10-50 -(10-50)
Total 35-100
* Stamp duty of 0.5%

# Custody charge of 0.05%- 0.1%

18
Savings for an investor who sells dematerialized shares

(For a sale of Rs10000)

Physical Depository (demat) Savings

Item
(Rs) (Rs) (Rs)
*Brokerage 75-100 50-75 25-50
Company Objection 10-30 - 10-30
(courier, etc.)
Settlement charges - -(5-10) -(5-10)
Total 25-75
· Many brokers offer reduced brokerage for selling of
dematerialized securities since they will not have the fear of
bad delivery

19
Savings for a trader who buys and sells very often.

(For a trader who turns over his portfolio of Rs10000 ten times in a
year.)

Item Physical (Rs) Depository (demat) Savings (Rs)

(Rs)
*Brokerage 750-1000 500-750 250-500
Settlement - 50-100 -(50-100)
charges
Custody (5 years) - 2-10 -(2-10)
Total 140-390

* Many brokers offer reduced brokerage for sell of dematerialized

securities since they would not have fear of bad delivery.

20
2.3: BANK ACCOUNTS

2.3(a): How to open a bank account with a DP

Opening a depository account is as simple as opening a bank

account. You can open a depository account with any DP convenient
to you.

To open an account you have to:

· Fill up the account opening form, which is available with the DP.

· Sign the DP-client agreement, which defines the rights and

duties of the DP and the person wishing to open the account.

· Receive your client account number (client ID).

· This client ID along with your DP ID gives you a unique

identification in the depository system.

There is no restriction on the number of depository accounts a person

can open. However, if your existing physical shares are in joint
names, you have to open the account in the same order of names
before you submit your share certificates for demat. A sole holder of
the share certificates cannot add more names as joint holders at the
time of dematerializing his share certificates.

However, if the investor wants to transfer the ownership from his

individual name to a joint name, he should first open an account as
the sole holder (account A) and dematerialize the share certificates.
He should then open another depository account (account B) in which

21
he is the first holder and the other person is the second holder and
make an off market transfer of the shares from the account A to
account B. The investor will incur a charge on this transaction.
Alternatively, the certificates can be transferred to the joint ownership
and then sent for Dematerialization.

Right now, as per the Companies Act, there is no nomination facility

for shares (whether in the physical or in the electronic form). The
nomination facility for shares can be availed of only when the relevant
provisions in the Companies Act are amended. NSDL captures the
details of the nominee when the account is opened so as to offer the
facility as soon as the relevant amendments are effected in the Law.

A client can choose to open more than one account with same DP. In
addition to this, he has a choice of opening accounts with more than
one DP. However a broker can open just one Clearing Member
account per card/ stock exchange for clearing purpose, but he can
still open multiple beneficiary accounts Beneficiary is the personal
account wherein brokers can keep their personal holdings.

A broker has only one Clearing Member-pool-account. One Clearing

Member pool account is opened per card/ stock exchange to settle
trades in the dematerialized form. The Clearing Corporation/ House
just deals with one designated account for pay-in and payout and the
broker's clients know to which account they have to deliver and
receive securities from.

A clearing member cannot hold his personal holdings in his clearing

member account. A broker may deal in the depository system as a
clearing member only through a special account, known as the

22
Clearing Member account. This account can be used only for clearing
purposes and not for holding his own securities in it. As this is a
transitory account, the securities held in this account are not eligible
for corporate actions. Therefore, the broker will have to open a
separate beneficiary owner account to hold his investments.

There is no compulsion for the client to open his account with the
same DP as that of his broker. Even if he has an account with
another DP, he can carry out normal business with his broker. There
is no loss in operational efficiency. But it is possible that opening
account with his broker's DP may work out to his advantage, as some
DPs may offer special charge structure if the broker and his clients
are dealing through him.

2.3(b): How to choose a DP

Following are the few aspects that you should consider before
choosing a DP:

1. Branch-level service.

Most DPs offer depository services from their main branch as well as
through other branches and franchisees. Higher the number of
branches your DP has, (which offer depository services) greater will
be the geographical convenience you will have.

Recently Department of Telecommunications has allowed the DPs

(only bank-DPs at present) to connect their entire internal network to
NSDL. The NSDL is making changes in its software for DPs to meet

23
the Dot conditions. After it is done DPs will be able to execute your
instructions directly at the branch level thus saving time and
improving efficiency. So check before opening an account whether
your DP (if it is a bank-DP) intends to interconnect its branch network
with that of NSDL. Before opening an account with a DP you should
also check whether the DP is offering all the services through its
branches.

DPs mandate a time limit for submission of debit instructions before

settlement pay-in time. It should be checked whether the time limit
applies equally to all the branches (or franchisees) of the DP or
whether it varies.

2. Backup facilities

Having an adequate backup system is extremely necessary for a DP.

In case of a system failure all the data could be lost if backup facilities
are not present. Although depositories too have the data with them
but a strong system with your DP ensures no risks and hassles.

So before opening an account get details from your DP about its

computer system's technical specifications and backup facilities.

3. Safe procedures.

Your securities account can get debited only if you submit to your DP
a duly filled and signed 'delivery instruction' (debit instruction) form
(separate for market trades and off-market transfers) that authorizes
the DP to debit your account. You will execute this form only when
you have sold shares. But you could have worries that some one else
can forge your signature on such a form, which your DP will not be

24
able to detect, and your account will get debited .To get rid of these
worries you should check that delivery instruction form book that you
get from your DP must be serial-numbered with numbers unique to
your account and recorded in the DP's system.

Whenever there is a debit or credit in an A/C the DP is supposed to

send a transaction statement and a holding statement to the investors
within a fortnight. In case there have been no transactions they
generate just a holding statement every quarter. So check for the
statements regularly since all DPs are not very punctual about
sending transaction and holding statements. These statements will
ensure that you’re A/C is proper.

There is an additional safety feature available with the DPs. You can
freeze your account on the debit side if you do not want to sell the
shares from your account, this will ensure that no debit is done in
your account. Your account will continue to receive credits arising
from fresh purchases but no debit will be permitted. A special form
that you can get from the DP is executed that instructs your DP to
freeze your account (only for the debit side or completely). When you
want to sell your shares you can execute the same form to unlock
your account.

4. Customer Service

DPs should have adequate customer service facilities. This is one of

the most important aspects while deciding your DP. At some time or
other you will need some information on your account. Your DP

25
should be able to provide you quick service, so check whether your
DP has a dedicated customer service department.

If you are not happy with the service, you get from your DP or you are
not sure that your shares will be safe you should not think twice of
taking your shares to another DP.

2.4: TRADING

Trading in dematerialized securities is quite similar to trading in

physical securities. The major difference is that at the time of
settlement, instead of delivery/ receipt of securities in the physical
form, it is done through account transfer.

An investor cannot trade in dematerialized securities through his DP.

Trading at the stock exchanges can be done only through a
registered trading member (broker) of the stock exchange
irrespective of whether the securities are held in physical or
dematerialized form. DPs role will only be to facilitate settlement of
trade in the dematerialized form, by transferring securities from and to
the account of the investor, for selling and buying respectively.

Trading in dematerialized securities is presently available at NSE,

BSE, CSE, DSE,LSE, MSE, ISE & OTCEI. These exchanges have a
segment exclusive for trading in dematerialized securities and a
segment where trades could be settled either in the physical or in the
dematerialized form as per the choice of the delivering client. In
unified (erstwhile - physical) segment securities can be delivered

26
either in the physical form or in the dematerialized form at the choice
of the delivering party.

However, securities that have to be mandatorily settled in demat form

(both by institutional investors & all category of investors) cannot be
settled in physical form. Also for securities that have to be
mandatorily settled in demat form by all categories of investors the
concept of market lot is eliminated i.e. the tradable lot is one share
from the date they become compulsory.

27
2.5: SETTLEMENT

The settlement of trades in the stock exchanges is undertaken by the

clearing corporation (CC)/ clearing house (CH) of the corresponding
stock exchanges. While the settlement of dematerialized securities is
effected through depository, the funds settlement is effected through
the clearing banks. The clearing members directly with the CC/ CH
settle the physical securities.

Exclusive Demat segment follows rolling settlement (T+5) cycle and

the unified (erstwhile - physical) segment follows account period
settlement cycle. In case of rolling settlement cycle, the account
period is reduced to one day.

• In case of settlement of trades done in exclusive Demat

segments, the pay-in and pay out of funds and securities are
effected on the same day afternoon and evening (same day)
thus reducing the blockage of funds and limiting exposure to
the clearing corporation.
• Settlement of funds is effected through the clearing banks and
depository plays no role in this.
• Settlement of securities is effected through NSDL depository
system.
• Clearing and settlement of the regular market trades is affected
through the clearing members of the clearinghouses of
respective stock exchanges. All trading members of stock
exchanges are clearing members of clearing houses. In

28
 addition, for settlement of institutional trades, custodians are
also allowed to act as clearing members.
• Clearing members of clearinghouse, dealing in dematerialized
securities are expected to open a clearing account with any DP
for the purpose of settling trades in dematerialized securities.
As, in the mixed (unified) segment, there is a possibility for all
clearing members to receive dematerialized securities, they are
expected to open clearing accounts.
• If there is any short delivery at the time of pay-in of securities,
these short positions are auctioned in the Demat segment as
done in the Unified (erstwhile-physical) segment.

For trades executed on Wednesday (TD 1):

• Final/ Net obligation statement download - Friday (T+2nd

working day)
• Settlement day (SD 1) i.e. pay in and pay out of funds and
securities - next Wednesday (T+5th working day)
• Auction trade day (ATD 1) - next Thursday (T+6th working day)
• Auction settlement day (ASD 1) - Monday (2nd working day
from auction trade day i.e. T+8th working day)

Similarly, for trades executed on Thursday (TD 2):

• Final/ Net obligation statement download - Monday (T+2nd

working day)
• Settlement day (SD 2) - next Thursday (T+5th working day)
• Auction trade day (ATD 2) - next Friday (T+6th working day)
• Auction settlement day (ASD 2) - Tuesday (2nd working day
from auction trade day i.e. T+8th working day)

29
2.6: CHARGES

2.6(a): NSDL Charges for DPs

NSDL does not charge the investor directly but charges its DPs, who
are free to charge their clients.

NSDL charges its DPs under the following heads:

2.6(a)-1: Transaction Fees :

1. Market Trade :

Sale - nil;

Purchase - 5 basis points (i.e. 0.05% of the value of net receipts to a

clearing members account)

2. Off Market Trade:

Sale - nil;

Purchase - 10 basis points (i.e. 0.1% of value of securities).

2.6(a)-2: Custody Fees :

3.5 basis points p.a.(i.e. 0.035% p.a. of average value of securities)

30
 CHAPTER – 3

OBJECTIVE OF THE PROJECT

OBJECTIVE OF THE PROJECT REPORT

The objective of my project is divided into two main parts:

1. Comparison of DEMAT services of ICICI & IDBI banks.

In this objective services rendered by ICICI and

IDBI are compared and according which the result that which is better
among the two is found.
2. Awareness about DEMAT a/c.

Second objective gives the purpose of

drawing a questionnaire in which awareness about handling a Demat
A/C among salaried and self employed were found.

This objective includes sub objectives which

are as follows:

31
 How many persons interested in investment?

 How many persons are dealing with securities?

 Which investment style is most preferred by investors?

 How many persons have Demat a/c?

 What are the merits and demerits of opening a Demat a/c?

32
CHAPTER – 4

METHODOLOGY

 Details of ICICI Demat services

 Details of IDBI Demat services

33
Dematerialisation (DEMAT)

Dematerialisation is a process in which the physical certificates of an

investor are taken back by the company. The registrar destroys the
shares and equivalent number of shares are credited in the electronic
holdings of the investor. This is done at the request of the investor.

The Process
6
NSDL 2
Depository
Participant
5

1
7
3
4
Registrar Investor

1. Surrendering of certificate to Depository Participants for

dematerialisation.
2. NSDL is informed by the DP through electronic connectivity.
3. Original share certificates are submitted to the registrar by the
DP.
4. The request for dematerialisation from NSDL to the register.
5. The registrar credits an equivalent number of shares in the
account and informs NSDL.
6. The NSDL updates its own account and the depository
participants are informed.
7. The depository agent credit it in the account of the investor and
the same is informed to the investor.

34
Rematerialisation

Sometimes the investor may like to convert his electronic holdings

back into physical share certificate. The process undertaken for this
purpose is called rematerialisation. The investor has to make a
request to the depository participant for rematerialisation. The
depository participant puts forward the request to NSDL after
verifying whether the investor in having necessary security balances.
NSDL in turn will intimate the registrar who prints the certificate and
dispatch the same to the investor. The certificate has a new range of
certificate numbers and new folio number.

The Process

NSDL Depository5 Participant

2

Registrar 6
Investor

1. Investor request the DP for rematerialisation.

2. The depository participant informs it to the NSDL.
3. NSDL intimates the Registrar.
4. The Registrar of the company prints certificates with new

35
 number and informs NSDL.
5. NSDL adjusts its account and passes on the details to the DP.
6. The certificates are dispatched to the investor.

Service Charges

The stamp duty of 0.50 per cent payable in a paper-based system is

eliminated in the demat environment. The depository participants
charge on an average 0.15 per cent of the market price of the stock
per annum as custodial charges. The depository participants have to
pay 0.035 per cent to NSDL (reduced from the earlier 0.07 per cent
from August 1997).

These custodial service charges vary from one depository

participant to another. HDFC Bank charges as much as 0.18 per cent
per annum as holding charges, but there are others, such as Action
Financial Services that charges just 0.09 per cent per annum. Apart
from custodial charges there are account opening charges up to-
Rs,1,000 charged by some depository participants. This is besides,
the transaction charges which range from 0.02-0.15 per cent buy
transactions and from 0-0.12 per cent on sell transactions.
NATIONAL SECURITIES DEPOSITORY LIMITED

To meet the capital requirements companies turn towards the capital

market that is more flexible and responsive source of funds. The
savers of Indian economy a decade ago held simple pass books of
the post office and banks. Today they hold plenty of paper or
marketable financial assets or securities. The stock brokers have to
move large number of paper certificates to give delivery on he half of

36
their clients. Each transfer of a deed involves different manual
checks. Many of the share transfers are rejected because of some
technical defect and investors who sell their shares often, wait a
couple of months before they receive their money. Because of this
tiring procedure, many of the foreign institutional investors restrict
their trading with sensex scrip’s. To remove these difficulties, National
Securities Depository Limited was established.

NSDL is an organisation promoted by the Industrial

Development Bank of India the Unit Trust of India and the National
Stock Exchanges of India Ltd., to provide electronic depository
facilities for securities traded in the equity and the debt market. The
depositories’ ordinances promulgated by the Government of India in
September 1995 enabled the setting up of multiple depository
system. The securities and Exchange Board of India (SEBI) issued
the guidelines for depositories in May 1996. The Bill was passed by
the parliament in July 1996. NSDL was registered by SEBI on June 7,
1996.

37
THE FUNCTIONING

NSDL performs the following functions through its various

participants

a) Enable surrender and withdrawal of securities to and from the

depository.
b) Maintains investor’s holdings in the electronic form.
c) Effects settlement of securities traded on exchanges.
d) Carries out settlements of trader that have not been done on
the stock exchanges.

NSDL (DP) Depository Participant can be a public financial institution,

bank, custodian, registered stock broker or a NBFC subject to
approval from the depository company and the SEBI, Brokers and
NBFCs are required to have a minimum net worth of Rs. 50 lakhs. DP
has to pay a security deposit of Rs. 10 lakhs and an admission fee of
Rs. 25,000 to NSDL. The depository participants are likely to pass on
these charges to the investors.

38
 II - METHODOLOGY

SECTION - A

DETAILS OF ICICI DEMAT SERVICES

 Demat services & their charges

 NSDL charges
 Conditions

39
Two Options for the recovery of Demat services
charges

Option 1: Customers, who have only a Depository relationship with

ICICI Bank, will be required to pay an advance fees for each demat
account, which will be adjusted against service charges. The
customer will also undertake to replenish the balance immediately
when it falls below the threshold amount, as specified amount, as
specified below:

Standard / Bond Frequent Trader

Advance Amount Rs. 2,500/- Rs. 7,500/-
Threshold Rs. 1,000/- Rs. 2,000/-
Amount

Option 2: Customers who have a banking relationship with ICICI

Bank will provide a debit authorization for the recovery of service
charges.

40
 NSDL charges :

NSDL charges are chargeable extra at actual. Present NSDL

Charges are:

Sell: Market and Rs. 8/- per debit instruction (nil for
Off-Market commercial paper and short –term debt
instruments)
Rematerialization Rs. 10/- per certificate
Pledge Creation Rs. 25/- per instruction

 Conditions:

1) The value of shares and charges are calculated as per NSDL

formula and rates.

2) There will be a charge of Rs. 100/- for dishonor of any cheque or

unsuccessful attempt to recover payment through direct debit or
ECS. The depository services are liable to discontinuation if ICICI
Bank is unable to recover charges from the customer, fro any
reason whatsoever. In such cases, there will be a charge of Rs.
250/- for resumption of services and the services will be resumed
after a minimum of three working days from the date of receipt of
request at Central Processing Office, Mumbai.

3) Any service that is not indicated above will be charged separately

as per the rates applicable from time to time.

41
4) ICICI Bank reserves the right to revise the tariff structure from time
to time, with a notice of 30 days. The notice may be given by
ordinary post or by an advertisement in a national daily.

5) If the Demat Account is closed during the year, no pro-rata refund

of Annual Charge will be made.

42
 ICICI BANK DEMAT CHARGES

Charge Head Standard Charges

Frequent/Sub-brokers

Charges

A/c Opening Nil Nil

Annual Services Charges Rs. 500/- (450/-for Rs. 1250/-

Customers receiving statements
by e-mail)

Agreements Stamp Paper Rs.100/- Rs.100/-

Buy-Market and Off-Market Nil Nil

Sell-Market and Off-Market (% of transaction value of each ISIN)-

Max. Rs. 500 for debit instruments

• For trade done on www. icicidirect.com Nil Nil

• For instruction submitted through Internet (e-instructions)
0.04% (Min. Rs. 10/-) 0.02% (Min. Rs. 5/-)
• For instruction submitted through Call Centre (e-instructions)
0.04% (Min. Rs. 15/-) 0.02% (Min. Rs. 10/-)
• For instruction submitted through Branches 0.04%
(Min. Rs. 30/-) 0.02% (Min. Rs. 15/-)

Rejection/fails Rs. 30/- Rs. 15/-

Extra charges for processing of instructions submitted on the

execution date late (accepted at Client’s risk)

• For instruction submitted through Internet (e-instructions)

Nil Nil
• For instruction submitted through Call Centre (e-instructions)
Nil Nil

43
• For instruction submitted through Branches
Rs. 10/- per ISIN Rs. 10/-per ISIN

Dematerialisation

• For each request form Rs. 35/- Rs. 35/-

• Extra for each certificate Rs. 2/- Rs. 2/-
Rematerialisation (For each request form)Rs. 20/- Rs. 20/-
Closure of Account Nil Nil

Pledge Creation/Closure/Confirmation/Invocation
(% Of value for each ISIN in each request)

• If ICICI Bank is the counter party 0.02%

(Min. Rs. 15/-)0.02% (Min. Rs. 15/-)
• If ICICI Bank is not the counter party 0.04%
(Min. Rs. 30/-)0.02% (Min. Rs. 30/-)

Additional Account Statements Rs. 20/- Rs. 20/-

NSDL charges are chargeable extra at actuals. Present NSDL

Charges are:

Sell – Market and Off-Market Rs. 6/- per debit

instruction (nil for commercial paper & short-term
debt instruments)

Remat Rs. 10 for every hundred securities or part thereof; or a

flat fee of
Rs. 10 per certificate whichever
is higher.

Pledge Creation Rs. 25/- per instruction

44
Conditions:

• The value of shares and charges is calculated as per NSDL

formula and rates.

• There will be a charge of Rs. 100/- for dishonor of any cheque or

unsuccessful attempt to recover payment through direct debit or

ECS. The depository services are liable to discontinuation if ICICI

Bank is unable to recover charge from the customer for any

reason whatsoever. In such cases there will be a charge of Rs.

250/- for resumption of services and the services will be resumed

after a minimum of three working days from the date of receipt

request at Central Processing Office. Mumbai.

• Any service that is not indicated above will be charged separately

as per the rates applicable from time to time.

• ICICI Bank reserves the right to revise the tariff structure from time

to time, with notice of 30 days. The notice may be given by

ordinary post or by advertisement in a national daily.

• If the Demat Account is dosed during the year, no pro-rate refund

of Annual Service Charge will be made.

45
 SECTION - B

DETAILS OF IDBI DEMAT SERVICES

 Services & its charges

 Statement & its charges

 Transaction & its charges

 Pledge & its charges

 Lending & Borrowing & its charges

 Other & its charges

 Additional note

46
 IDBI BANK DEMAT CHARGES

DEMAT SERVICES AND CHARGES SCHEDULE FOR CORPORATE

WITH NSDL DEMAT ACCOUNT

SERVICES AMOUNT MINIMUM

(where
applicable)
Account Opening FREE
(Stamp duty as
applicable)
Account Maintenance for idbi bank Rs. 350/- per annum
SB/Current
AC Holders
(Payable in advance in the month of
account opening and on anniversary
basis every year thereafter)
Account Maintenance for non-idbi bank Rs. 500/- per annum
account holders
(Payable in advance in the month of
account opening and on anniversary
basis every year thereafter)
STATEMENTS
Quarterly statement by post FREE
Fortnightly statement by post (only if FREE
transactions take place during the
period)
Monthly statement by email FREE
On request statement on IVR FREE
On request statement by email for FREE
requests logged over IVR
On request statement at the branch Rs. 25 each
O request statement by post (address Rs. 500 each
outside India)
Optional Monthly Holding Statement Rs. 200 per annum
(payable in advance in the month of
account opening and on anniversary
basis every year thereafter)
TRANSACTIONS
Dematerialisation of EQUITY 0.2% of face value, Postage Rs. 35 per
Instruments plus postage request
Dematerialisation of DEBT instruments Rs. 2 per certificate, Postage Rs. 35 per

47
 pus postage request
Rematerialisation of Securities 0.04% of market value Rs. 20 per
certificate
Market Equity BUY transactions FREE
Market Debt BUY Transactions FREE
Market Equity SELL Transaction 0.04% of market value* Rs. 30 per
transaction
Market Debt SELL Transactions 0.04% of market value* Rs. 30 per
transaction
Off Market Equity BUY Transaction FREE
Off Market Debt BUY Transaction FREE
Off Market Equity SELL Transaction 0.04% of market value* Rs. 30 per
transaction
Off Market Debt SELL Transactions 0.04% of market value* Rs. 30 per
transaction
Inter-Depository Transfer (Buy) FREE
Inter-Depository Transfer (Sell) 0.04% of market value* Rs. 30 per
transaction

Late Instruction Fees, payable 0.25% of market value* Rs. 50 per

upfront** instruction

Freeze Rs. 100 per instruction

De-Freeze Rs. 100 per instruction

PLEDGE
Pledge Creation 0.05% of market value* Rs. 50 per
transaction
Pledge Closure 0.05% of market value* Rs. 25 per
transaction
Pledge Invocation 0.15% of market value* Rs. 25 per
transaction

LENDING & BORROWING

Securities Lending / Borrowing Rs. 50 per instruction
Initiation
Securities Lending / Borrowing Rs. 50 per instruction
Confirmation
Securities Recall / Repay Initiation Rs. 50 per instruction

48
Securities Recall / Repay Confirmation Rs. 50 per instruction

OTHERS
Service Tax 12.24% of charges for
(Subject to change, as prescribed by Depository Services
Tax Authorities from time to time)

# IDBI Bank SB/Current A/c holders must provide Standing

Instructions for recovery of the service charges.

* For calculation of charges, market value of transaction / holding

will be as per NSDL

** All instructions for transfer must be received at respective

branches of the Bank on or before 4.00 pm of previous working day
of the pay in /execution date. Instructions received after the
above deadline will be accepted only at client’s risk. Such late
instructions will invite additional charges as specified in the
table above.

NOTE:

Bills for service charges will be raised monthly. Charges quoted

above are for the services listed. Any service not listed will be
charged separately as per Bank’s policy.

49
 IDBI BANK DEMAT CHARGES

DEMAT SERVICES AND CHARGES SCHEDULE FOR INDIVIDUALS &

CORPORATES WITH CDS DEMAT ACCOUNT FROM MARCH, 2005

SERVICES AMOUNT MINIMUM

(where
applicable)
Account Opening (for idbi bank savings FREE
& current account holders) (Stamp duty as
applicable)
Custody Charges FREE
Account Maintenance for idbi bank SB/ Rs. 350/- per annum#
Current
AC Holders $
(Payable in advance in the month of
account opening and on anniversary
basis every year thereafter)
Account Maintenance for non-idbi bank Rs. 500/- per annum
account holders $
(Payable in advance in the month of
account opening and on anniversary
basis every year thereafter)
STATEMENTS
Quarterly statement by post FREE
Fortnightly statement by post (only if FREE
transactions take place during the
period)
Monthly statement by email FREE
On request statement on IVR FREE
On request statement by email for FREE
requests logged over IVR
On request statement at the branch Rs. 25 each
On request statement by post (address Rs. 500 each
outside India)
Optional Monthly Holding Statement Rs. 200 per annum
(payable in advance in the month of
account opening and on anniversary
basis every year thereafter)
TRANSACTIONS
Dematerialisation of EQUITY 0.2% of face value, plus Postage Rs. 35 per
Instruments postage request
Dematerialisation of DEBT instruments Rs. 2 per certificate, pus Postage Rs. 35 per
postage request

50
Dematerialization of Securities 0.04% of market value Rs. 20 per
certificate
Market Equity BUY transactions FREE
Market Debt BUY Transactions FREE
Market Equity SELL Transaction 0.04% of market value* Rs. 30 per
transaction
Market Debt SELL Transactions 0.04% of market value* Rs. 30 per
transaction
Off Market Equity BUY Transaction FREE
Off Market Debt BUY Transaction FREE
Off Market Equity SELL Transaction 0.04% of market value* Rs. 30 per
transaction
Off Market Debt SELL Transactions 0.04% of market value* Rs. 30 per
transaction
Inter-Depository Transfer (Buy) FREE
Inter-Depository Transfer (Sell) 0.04% of market value* Rs. 30 per
transaction

Late Instruction Fees, payable 0.25% of market value* Rs. 50 per

upfront** instruction

Freeze Rs. 100 per instruction

De-Freeze Rs. 100 per instruction
PLEDGE
Pledge Creation 0.05% of market value* Rs. 50 per
transaction
Pledge Closure 0.05% of market value* Rs. 25 per
transaction
Pledge Invocation 0.15% of market value* Rs. 25 per
transaction
OTHERS
Service Tax 12.24% of charges for
(Subject to change, as prescribed by Depository Services
Tax Authorities from time to time)

$ For Corporate Account, and additional AMC of Rs. 500 p.a.

payable to CDSL will be charged.

# IDBI Bank SB/Current A/c holders must provide Standing

Instructions for recovery of the service charges.

51
* For calculation of charges, market value of transaction / holding
will be as per NSDL

** All instructions for transfer must be received at respective

branches of the Bank on or before 4.00 pm of previous working day
of the pay in /execution date. Instructions received after the
above deadline will be accepted only at client’s risk. Such late
instructions will invite additional charges as specified in the
table above.

NOTES:

Bills for service charges will be raised monthly. Charges quoted

above are for the services listed. Any service not listed will be
charged separately as per Bank’s policy.

52
DEMAT SERVICES AND CHARGES SCHEDULE

EFFECTIVE MAY 01, 2005

SERVICES CHARGES MINIMUM

(Where
applicable)
Account Opening (for IDBI FREE
bank savings & current
(Stamp duty as
account holders)
applicable)
Account opening (for non Rs. 200
IDBI account holders) (Plus stamp duty as
applicable)
Custody Charges Rs. 1.25 per ISIN per Rs. 7.50 per
month in the Demat account per
account month
Account Maintenance for Rs. 250/- per annum
IDBI bank SB/Current A/C
Holders (Payable in
advance in the month of
account opening and on
anniversary basis every
year thereafter)
Account Maintenance for Rs. 400/- per annum
non IDBI bank A/C Holders
(Payable in advance at the
time of account opening
and on anniversary basis

53
every year thereafter)
STATEMENTS CHARGES MINIMUM
(Where
applicable)
Quarterly statement by post FREE
Fortnightly statement by post FREE
(only if transactions take
place during the period)
Monthly statement by email FREE
On request statement on IVR FREE
On request statement by FREE
email for requests logged
over IVR
On request statement at the Rs. 25 each
branch
Optional monthly Holding
Statement (payable in
advance in the month of
account opening and on
anniversary basis every year
thereafter

TRANSACTIONS CHARGES MINIMUM

(Where
applicable)
Dematerialization of 0.2% on face value, Postage
EQUITY instruments
Plus postage Rs. 35 per

54
 request

Dematerialization of DEBT Rs. 2 per certificate, Postage

instruments
Plus postage Rs. 35 per
request
Rematerializtaion of 0.40% of market Rs. 20 per
Securities value certificate
Market Equity BUY 0.02% of market Rs. 20 per
Transactions value scrip
Market Debt BUY 0.02% of market Rs. 20 per
Transactions value scrip
Market Equity SELL 0.02% of market Rs. 20 per
Transactions value scrip
Market Debt SELL 0.02% of market Rs. 20 per
Transactions value scrip
Off Market Equity BUY 0.02% of market Rs. 20 per
Transactions value scrip
Off Market Debt BUY 0.02% of market Rs. 20 per
Transactions value scrip
Off Market Equity SELL 0.02% of market Rs. 20 per
Transactions value scrip
Off Market Debt SELL 0.02% of market Rs. 20 per
Transactions value scrip
Late instruction Fees, 0.25% of market Rs. 50 per
payable upfront value instruction
Inter-Depository Transfer 0.02% of market Rs. 20 per
(Buy) value scrip
Inter-Depository Transfer 0.02% of market Rs. 20 per
(Sell) value scrip
Freeze Rs. 100 per
instruction

55
De-Freeze Rs. 100 per
instruction
PLEDGE CHARGES MINIMUM
(Where
applicable)
Pledge Creation 0.05% of market Rs. 50 per
value Transaction
Pledge Closure 0.05% of market Rs. 25 per
value Transaction
Pledge Innovation 0.15% of market Rs. 25 per
value Transaction
LENDING & BORROWING CHARGES MINIMUM
(Where
applicable)
Securities lending / Rs. 50 per instruction
Borrowing Initiation
Securities Lending / Rs. 50 per instruction
Borrowing Confirmation
Securities Recall / Repay Rs. 50 per instruction
Initiation
Securities Recall / Repay Rs. 50 per instruction
Confirmation
OTHERS CHARGES MINIMUM
(Where
applicable)
Service Tax 10.2% of charges for

(Subject to change, as Depository Services

prescribed by Tax
Authorities from time to
time)

56
57
Additional Note:

 IDBI Bank SB / Current A/C holders must provide Standing

Instructions for recovery of the service charges.

 For calculation of charges, market value of transaction / holding

will be as per NSDL.

 All instructions for transfer must be received at respective

branches of the bank, one day before the date of execution, not

later then 4 pm of the previous day. Instructions received after

the above deadline will be accepted only at client’s risk.

Such late instructions will invite additional charges as

specified in the table above.

NOTES:

1) Bills for service charges will be raised monthly. Charges

quoted above are for the services listed. Any service not
listed above will be charged separately as per Bank’s policy.

2) Statement of Account will be mailed monthly for accounts

where transactions have place during then period, for FREE.

58
 SECTION – C

WHICH IS BETTER? ICICI OR IDBI

 Differences

59
 DIFFERENCES

Through personal interview, it is found that ICICI is

best among the two. On the basis of:

DIFFERENCES
Sr.No. ICICI IDBI
1 Online trading facility It is a pioneer in providing
Initially it was ICICI which trading, DEMAT &
introduce online trading investment service.
2. Annual service charges
ICICI has charges of Rs. 550 IDBI has Rs 650,
only
3 Speak to transfer
It is an USP of ICICI bank, in
which securities in any other
bank DEMAT A/C can be
transferred to ICICI Demat A/C in
a phone itself
4 Web trade DEMAT
In it ICICI itself work as a broker
for its investor through eye direct,
costing Rs. 750 for it
5 More number of DEMAT A/C Where in IDBI there are
ICICI bank are nearly about 8000 approx. 6000 a/c’s..

60
 RESEARCH METHODOLOGY

RESEARCH OBJECTIVE:

The objective of this research is as follows: -

 To know the functioning of stock exchange (Stock market).

 To know, how the stockbrokers earn profit by providing services

to the investors.

 To study that which type of opportunity looking by stock brokers

in coming years.

 To find out new avenues of opportunity of stock broking

companies

61
 Research design

Descriptive research design includes survey & fact findings

inquiries of different kinds. The major purpose of descriptive research is

description of state of affairs as it exits at present.

Sample design : Simple random sampling

Simple random sampling also known as probability sampling

Under this sampling design every item of universe has an equal chance of

inclusion in sample. It is say to a lottery method.

Collection of Data

Primary data – Questionnaire

Secondary Data –Newpaper, website ,magazine

Sample size : - The sample size of research study is 60

62
CHAPTER – 5

ANALYSIS IN THE PROJECT

63
 ANALYSIS IN THE PROJECT

To clear my second objective that is ‘Awareness program on Demat’ it

become necessary to analyze among salaried and self-employed
persons answers for following questions arose for it. They are:

(I) To find out the number of persons investing or interested in

investing, in securities.

(II) How much does a persons have knowledge about DEMAT A/C?

(III) To find out the number of persons having or wanted to have

DEMAT A/C

(IV) Point of view of investor’s regarding DEMAT services provided

by the bank.

64
 CHAPTER – 6

FINDINGS IN THE PROJECT

Q.1: Are you interested in investment?

Yes 55
No 5
Total 60

Are you interested in investment?

no, 5, 8%

yes
no

ye s , 55, 92%

Interpretation:
The given bar diagram shows that 55% of respondents are willing to
invest their money, 5% are not interested.

65
Q.2: What percentage of your annual income you can keep for
investment?

More than 5% 9
More than 10% 21
More than 15% 16
More than 20% 10
Above 4

Share of investment in annual income

7% 15%
17% More than 5%

more than 10%

More than 15%

34%
27% More than 20%

above

Interpretation:
The given pie chart shows that (out of 60 respondents), the
percentage share of investment from annual income is
more than 10% maximum
more than 5% average no. Of people
more than 20% average no. Of people

Q.3: In which category of income you will describe yourself?

66
Upper level income 10
Middle level income 45
Low level income 5

In which income level you fall ?

8% 17%
Upper level
income

Middle level
income
75%
low level
income

Interpretation:
The given bar chart shows that maximum respondents are fall in to
the middle income group, which shows that chances of investment
are bright because they want on extra source of fund generation.

67
Q.4: Are you dealing or interested in dealing with any security?

Yes 45
No 15

Are you interested in investing in securities?

no
25%

yes
75% yes
no

Out of 60 respondents 45 are willing to invest in securities like shares

debentures Mutual funds etc. & 15 are not interested at all.

68
Q.5: What type of investment style are you looking for?

Bonds, debenture etc. 5

Shares & warrants 28
Mutual funds 15
All of these 6
None of these 6

What type of investement style you prefer?

bonds,
debenture etc.
10% 8% shares &
warrants
10%
mutual funds

all of these
25% 47%
none of these

Approx. half of the persons want to invest in shares & warrants. It

may be the reason that they are the oldest investment style and
bears low risk than any other.

69
Q.6: What type of occupation do you have?

Salaried 51
Self employed 6
Retired 3

Whic h type of occupation you have ?

5%
10%
Salaried
Self empoyed
Retired
85%

Mostly there are salaried persons among all. There are near about
85% of the persons are salaried once.

Q. 7: Which of these best describes your job?

70
Managerial 15
Professional 21
Clerical 6
Skilled 6
Manual worker 3
Retired 3
Other 6

Description of your job.

10% Managerial
5% 25%
5% professional

Clerical
10%
Skilled
10%
mannual worker
35%
retired

other

There are managerial and professional persons are more in number

than any other. Where professionals are 21 in number and
managerial are 15 in number.

Q.8: Do you know about DEMAT ACCOUNT?

yes 20

71
 No 40

yes
33%

yes
No

No
67%

Due to less knowledge about DEMAT a/c 20 person are aware

& 40 person are not aware the DEMAT A/C

Q.9: Do you have a DEMAT A/C?

Yes 12

72
No 48

Do you have a DEMAT account?

yes
20%

No yes
80%
No

Due to less knowledge about Demat A/C percentage of having Demat

A/C is less in number. Therefore, only 12 persons are having Demat
A/C among which many of them doesn’t have full knowledge about it.

Q.10: If yes, then where?

Banks(ICICI & IDBI) 8

Broker 2
DP 2

73
 DP
17%

Banks
Broker
Broker
17%
DP
Banks
66%

As the diagram and table shows there are very less persons
who are having Demat A/C, and among them all have their A/C'S in
Bank only.

Q.11 If no,then where do you want to open?

Broker 5
Bank(ICICI & IDBI) 30
DP 5

74
 DP Broker
13% 13%

Broker
Bank
DP

Bank
74%

Where persons have no Demat A/C'S i.e.; 40 persons among 60,

Every 5 wants to open their A/C'S through broker & DP
and 30 Persons wants to open it personally in banks.

Q.12: In today’s investment management is it necessary to have a

DEMAT A/C for investors?

75
Yes 24
No 7
Can’t say 29

Today DEMAT accounts are necessary or

not?

Ye s
Can't s ay 40%
48% Yes
No
No
12% Can't say

Due to less knowledge percentage of can’t say is more, but many of

the persons give their answers in yes.

76
Q.13: Do you think your securities will be safe in DEMAT A/C?

Yes 36
No 0
Can’t say 24

Your securities will be safe in DEMAT

account or not.

Yes
40%
No
60% Can't say

0%

60% persons think that securities will be safe in Demat A/C'S than
any other place as it is totally a paper less work and there is no case
of misplace of it.

77
Q.14: In your point of view DEMAT A/C is for?

Easy to selling security 20

Purchase in primary market 7
Helps in fast money growth 4
Helps in income & money growth 16
Helps in stable income 13

In your point of view DEMAT account is for?

Securities

Purcase in prim ary

22% m arket
32%
Helps in fast
m oney grow th

Helps in incom e &

27%
12% m oney grow th
7%
Helps in stable
incom e

In many persons point of view Demat A/C is

generally for two major thinks i.e. they are for easy in selling
securities and helps in earn income & also grow money, as both are
scoring equal number of response. Other also thinks that it helps in
purchase in primary market and helps in earn a stable income.

78
Q.15: How frequently you are going to use your DEMAT a/c?

Daily 1
Weekly 3
Fortnightly 8

How frequently you use your DEMAT

account?

9%
Daily
27% Weekly
64% Fortnightly

24 persons prefer to use their A/C'S monthly in

a given period, where 21 persons were use it fortnightly, 9 were going
to use there A/C'S weekly and rest of all were use it daily.

79
 CHAPTER – 7

CONCLUSION OF THE PROJECT

 Conclusion from analysis

 Learnt from analysis

80
 CONCLUSION

1) Hardly 5% investor (among salaried and self-employed)

knows about DEMAT a/c.

2) Online trading facility given by bank is beneficial to investors,

through which they can easily transact from anywhere in the
country.

3) Without DEMAT A/C no sale of shares and warrants can take

place.

4) More than 5 lakh people have opened new DEMAT A/C'S in

this boom period of stock market.

5) Still there are many investors who are having share/

warrants in their hands but not having Demat A/C'S due to
lack of knowledge in services provided by bank’s.

81
 LEARNT FROM ANALYSIS

From all the analysis done through questionnaire and other sources

of generating knowledge about Demat A/C and services provided in

it. It is drawn out that where there are merits of opening a Demat A/C

there are certain demerits also.

Merits:

a) Safe for securities: From research and analysis I have found

that securities will be safe in Demat A/C’s. As by keeping

securities in such A/C'S investors does not have to bother about

there securities selling and also there is no chances of loss of

certificates.

b) Easy in selling securities: Through training I have got a result

that Demat A/C helps in selling securities of investors more easily

than any other sources. When a n investor keeps its share in a

Demat A/C then its banks responsibility to sell that security on

the action of investor.

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c) Fast money growth: In a Demat a/c, money invested on shares

/ warrants by an investor grows, if it is used by him frequently as

per the norms of share market.

d) Purchase in primary market: Basically Demat services doesn’t

provide services of purchasing shares through it, accept the

shares will be purchased in primary market, which helps

investors.

e) Paperless work: Before facility given by banks to open a Demat

A/C for keeping their shares in such a/c’s, investors keep it as a

share certificate which makes some time worry about loss of

share certificate. But through Demat A/C it is no more as in it

there is no need of doing paper work.

Now, government has made it compulsory to do

trading through Demat A/C only. This means now any share/warrant

can be sold only through Demat A/C’s.

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Demerits:

a) More enquiries: For opening a Demat A/C in bank, they require

lots of information about an individual for which they enquire

more and more to them.

b) Charges applied: Charges for opening a Demat A/C in a bank is

very high, there are the charges like transaction charges,

statement charges, pledge charges, etc.

c) Risky in terms of operation: As in the stock exchange when

their will be fall or rise in the price of shares / warrants it is not

defined, similarly when an investor open a Demat A/C he does

not know how long its profit will be occur.

d) Technical in nature: Demat services are fully system based

services. Today the world of new technology the process of

Dematerialization is based on it which may new to an individual 7

makes the process more technical in nature.

e) Lack of basic awareness: Due to its technicality the procedure

of handling a Demat A/C creates many problems for an investor.

As it is new an investor it create unawareness among them.

APPENDIXES

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Destruction of Certificates:

The issuer / R&T Agent may share the certificates after making
entries in the register of Destroyed Certificates.

Share Holder
Depository Participant
Opens Client Account Number
Dematerialization Request Form (DRF)
In duplicate to DP
DP to Depository (NSDL)
(For Dematerialization)
DRF+ Share Certificate
To
Issuer Company/STA (in &days)
Issuer Company/STA records and authorities.
Electronic Credit (within 15 Days)
STA intimates DP
Authorizing Dematerialization of Investor’s physical holdings and
adjustment of
Physical holdings NSDL will add
Dematerialized holdings to
Beneficial Owner’s Account

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 QUESTIONNAIRE

Name: __________________________________________________ Address:

__________________________________________________
Occupation:
_____________________________________________________________
Telephone: _________________________ Date:
________________________

Questionnaire for Awareness of DEMAT a/c

Quo.1: Are you interested in investment?

(a) Yes
(b) No

Quo.2: What percentage of your annual income you can keep for investment?
(a) < 5%
(b) < 10%
(c) <15%
(d) < 20%
(e) < 25%
(f) Above

Quo.3: In which category of income you will describe yourself?

(a) Lower income group
(b) Middle income group
(c) Higher income group

Quo.4: Are you dealing or interested in dealing with any security?

(a) Yes
(b) No

Quo.5: What type of investment style are you looking for?

(a) Bonds, debentures & debit investment

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 (b) Shares & warrants
(c) Mutual funds
(d) All of these
(e) None of these
Quo.6: What type of occupation do you have?
(a) Salaried
(b) Self employed

Quo.7: Which of these best describes your job?

(a) Managerial
(b) Professional
(c) Clerical
(d) Skilled
(e) Manual worker
(f) (j) Other (PLEASE WRITE IN)

Quo.8: Do you know about DEMAT a/c?

(a) Yes
(b) No

Quo.9: Do you have a DEMAT a/c?

(a) Yes
(b) No

Quo.10: If yes, then where?

(a) Broker
(b) Bank
(c) Depository Participant (DP)
[Note: Kindly mentions DP & Bank name]

Quo.11: If No, then where do you want to open?

(a) Broker
(b) Bank
(c) Depository Participant (DP)
[Note: Kindly mentions DP & Bank name]

Quo.12: In today’s investment management is it necessary to have a DEMAT A/C

for investors?
(a) Yes
(b) No

Quo.13: Do you think your securities will be safe in DEMAT a/c?

(a) Yes
(b) No
(c) Can’t say

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Quo.14: In your point of view DEMAT A/C is for?
(a) Easy in selling securities
(b) Purchase in primary market
(c) Helps in fast money growth
(d) Helps in earn income & also grow money
(e) Helps in earn a stable income

Quo.15: How frequently you are going to use your DEMAT a/c?
(a) Daily
(b) Weekly
(c) Fortnightly
(d) Monthly

Quo.16: What are the merits and demerits of DEMAT A/C in your views?

Merits Demerits
(a) ____________________________ (a)__________________________
(b) ____________________________ (b)__________________________
(c) ____________________________ (c) __________________________

Signature of Respondent: _________________________

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 BIBLIOGRAPHY

SOURCES OF INFORMATION

• Books:

 Bhalla V. K., Investment Management, S.Chand

• Internet:

 http://www.nsdl.co.in/
 http://www.icicidirect.com
 http://www.timebankindia.com

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