DEMAT ACCOUNT

DEMAT ACCOUNT

Project report submitted towards Partial fulfilment of PGDM

Academic Session [2009-2011] UNDER THE GUIDANCE OF

Mr.Abhishek manchanda Sales Manager Edelweiss Broking Limited

Submitted by: Name Anurag Sharma Roll No:-FC09125

DEMAT ACCOUNT

CERTIFICATE

This is to certify that the project work done on DEMAT ACCOUNT is an original work carried out by Mr.Anurag Sharma under my supervision and guidance. The project report is submitted towards the partial fulfillment of two year, full time Post Graduate Diploma in Management. This work has not been submitted anywhere else for any other degree/diploma. The work was carried out from03/05/2010 to 02 /06/2010 in Edelweiss Capital .

Abhishek Manchanda

Anurag Sharma Roll No.FC09125

Date:01/07/2010

DEMAT ACCOUNT

CERTIFICATE
This is to certify that the project work done on DEMAT ACCOUNT is an original work carried out by Mr.Anurag Sharma under my supervision and guidance. The project report is submitted towards the partial fulfillment of two year, full time Post Graduate Diploma in Management. This work has not been submitted anywhere else for any other degree/diploma. The work was carried out from03/05/2010 to 30/06/2010 in Edelweiss Capital.

Arnab Ghosh Date:01/07/2010

Sheena Manchanda

Anurag Sharma FC09125

DEMAT ACCOUNT

ACKNOWLEDGEMENT

This formal piece of acknowledgement may be sufficient to express the feelings of gratitude people who have helped me in successfully completing my Final Project Report. I am grateful to Mr.Abhishek Manchanda Sales manager of EDELWEISS BROKING LIMITED for giving me a chance to do my Final Project Report on DEMAT ACCOUNT which required extensive study of various investment measures. I feel,I shall always remain indebted to Ms.Sheena Manchanda(Assistant Professor in JIMS) without whom it is being impossible to complete my project report. He gave his kind supervision, guidance, timely support and all other kind of help required in each and every moment of need. I am deeply indebted to my dear parents, friends whose blessings and inspirations have brought me up to this stage of my career.

(Anurag Sharma) FC09125

DEMAT ACCOUNT

STUDENT DECLARATION

I Anurag Sharma hereby declare that In Final Project Report on Demat Account which is submitted in partial fulfilment of the requirements of PGDM at JIMS(jagan institute of management and studies) is my original work and not submitted for the award of any other degree, diploma, fellowship or other similar titles.

Anurag Sharma

DEMAT ACCOUNT

PREFACE

The successful completion of this project was a unique experience for me because by visiting many place and interacting various person, I achieved a better knowledge about sales. The experience which I gained by doing this project was essential at this turning point of my career this project is being submitted which content detailed analysis of the research under taken by me.

The research provides an opportunity to the student to devote his/her skills knowledge and competencies required during the technical session. The research is on the topic Edelweiss Broking Demat Account

DEMAT ACCOUNT

EXECUTIVE SUMMARY

Training and development is the essential job of human resources department of every organization. It is necessary to help employees in dealing with the changes caused by the changing business environment. I, Anurag Sharma had done my project in EDELWEISS BROKING LTD. which is a leading company in finance industry. The main objective of my project was to Demat Account. The training design included departments, and their training needs, month of training, sequence of training and methods of training. A proper matrix was formed differently for each level highlighting the requirements to be trained. It also includes different skills workshop including the contents, objectives of the skills imparted to the employees. Most important in training process are the ice breakers and games which help the trainees in feeling relaxed and refreshed.

Each level in organization was considered as separate entity and training procedure for them was also different.

DEMAT ACCOUNT

TABLE OF CONTENTS FOR PROJECT REPORT

Introduction SWOT Analysis Discussion on Training Demat Account of Edelweiss Need for the study Competitors Objective Research Methodology Data Analysis and Interpretation Observation and Finding Limitation Suggestion Summary and Conclusion Bibliography ANNEXURE (contains questionnaire)

9 14 16 20 30 31 36 37 40 50 51 51 52 53 54

DEMAT ACCOUNT

INTRODUCTION

EDELWEISS GROUP started its journey in Mumbai in the year 1995, by two IIM graduates, Mr. Rashesh Shah and Mr. Venkat Ramaswami .

Ideas create, values protect is the slogan and depict the mission statement of Edelweiss group.

Our Reputation and Image is more important than any financial reward. Reputation is hard to build and even harder to rebuild. Reputation will be impacted by our ability to think for our clients, maintain confidentiality and by our adherence to our value system. Mr. Rashesh Shah Mr. Venkat Ramaswami

The Logo : Edelweiss, a rare flower found in Switzerland. A graphic flower that represents ideas! Around it, the protective arms of the letter E:

Edelweiss believes ideas create wealth, but values protect it.

It is the practice of this core thought that has led to Edelweiss becoming one of the leading financial services company in India.

DEMAT ACCOUNT

Its current businesses include:

  

Investment Banking, Securities Broking, and Investment Management.

Edelweiss also provides a wide range of services to:    Corporations, Institutional Investors and High Net-Worth Individuals.

Headquarter based in Mumbai, India. KEY PEOPLE: Chairman & Founder: Mr. Rashesh Shah (IIM Graduate 1995 batch) and Venkat Ramaswami. Designated director: Naresh Kothari. Directors: Rashesh Shah, Venkat Ramaswami and Hiralal Chopra.

Type of industry: investment banking, brokerage and asset management firm. Total market capitalization: About Rs. 13,000 cr. Total number of employees : 645 Edelweiss was previously into niche marketing only, dealing with the High Net Worth Individuals (HNWI) clients only. Looking at the current market scenario, company is targeting the Retail Segment with its new Online Trading Portal. The company sights the need for entering into the retail segment by seeing the saturation of the niche market and the exploration of the areas which was left untouched by the organization. The idea behind this is to Reposition the company from niche marketer to mass marketer. The brand repositioning of the company is done in order to withstand the current market scenario (Global Economic Crisis).
10

DEMAT ACCOUNT

The product or the service that the company has come up with is the Prepaid Broking Plan for both the retail as well as HNI customers. Basically every broking firm offers dematerialization and the trading account with some charges associated to it and the main source of income is the brokerage that is collected on every transaction made by the customer, which is a continues source of income. The prepaid account is like mobile cash card which has to be recharge first and then can be used for a year. The client has to pay the brokerage in advance which will be deducted on every transaction. The client can recharge the account as the balance gets over before the validity expires.

PRODUCTS AND SERVICES  Investment Banking  Institutional investment  Asset management  Wealth management  Private client brokerage  Insurance brokerage  Wholesale financing

Investment Banking:

An Investment Bank is a financial institution that deals with raising capital, trading in securities and managing corporate mergers and acquisitions. Investment banks profit from companies and governments by raising money through issuing and selling securities in the capital markets (both equity, bond) and insuring bonds (selling credit default swaps), as well as providing advice on transactions such as mergers and acquisitions. At Edelweiss Securities Ltd, Investment Banking business is dedicated to providing corporations, entrepreneurs and investors, the highest quality independent financial advice and transaction execution.
11

DEMAT ACCOUNT

Institutional Investment:
Institutional investors are organizations which pool large sums of money and invest those sums in companies. They include banks, insurance companies, retirement or pension funds, hedge funds and mutual funds. Their role in the economy is to act as highly specialized investors on behalf of others.

Asset Management or Investment management:

Investment management is the professional management of various securities (shares, bonds etc.) and assets (e.g., real estate), to meet specified investment goals for the benefit of the investors. Investors may be institutions (insurance companies, pension funds, corporations etc.) or private investors (both directly via investment contracts and more
commonly via collective investment schemes e.g. mutual funds or Exchange Traded Funds)

12

DEMAT ACCOUNT

Private client brokerage:

The Private Client Services Group (PCG) at Edelweiss is focused on providing products, strategies and services to High Net worth Individuals and Corporate Clients. It has geographic reach through Branches, Channel Partners & Investment Consultants in over 19 locations in India. The PCG team has highly trained equity professionals, who act as clients Equity Advisor. Its ESL Equity Advisor proactively helps you take informed investment decisions and build a healthy portfolio.

13

DEMAT ACCOUNT

SWOT ANALYSIS
Strength:y y y y

Co-operat i ve and Exper i enced Branch Mana gers Good Databas e Reliance Br and Low pr icing

Weakness: y y y y

Inexper ienced Staff Low awar enes s due t o lack of adver t is ement. Lack of loyal cli ent age D evel opi ng pr oduct.

Opportunity:y y y y

U nt apped Mar ket Incr eas ed s pendi ng power Changi ng Minds et of Cust omer s U npr edict able S ens ex

Threat:y y y

Reach Stiff compet it ion fr om exist i ng player s in t he mar ket Bett er pr oducts

14

DEMAT ACCOUNT

WHAT DOES EDELWEISS BROKING LTD. OFFERS

1. Personalized Service
Company believes in providing personalized service and individual attention to each client to ensure that we understand their goals and help them achieve it.

2. Professional Advice
Company offers expert advice on equity and debt portfolios with an objective to provide consistent long-term return while taking calculated market risks. Companies approach helps clients build a proper mix of products, and not concentrate on just one individual product. Hence, serving long-term objectives in the best way.

3. Long-term Relationship
Company believes that long-term vision is the only means to steady wealth creation. However to achieve this one also needs to take advantage of short-term market opportunities while not losing sight of long-term objectives. Hence it partners all its clients in realizing their long-term vision.

4. Access to Research Reports

Company provides the clients with access to the expert opinion of economists and analysts.

5. Transparency and Confidentiality

Companies clients receive regular portfolio statements from relationship managers via email.

15

DEMAT ACCOUNT

DISCUSSION ON TRAINING

Students work profile (role and responsibilities)

I worked there with EDELWEISS BROKING LTD. with a profile of sales trainee. This profile offers me to understand the need of customer and provide them the best deal possible with maximization of the profit, both for the company as well as for the customer. The most important aspect for the role of trainee is trust. So far fulfilment of the targets one needs to:
y

Capitalize on the old and loyal clientele which can be building slowly by advising people in the best possible way.

Generating new leads through various activities.

Generation of leads
Since I was new in the field so I had to start from scratch and generate new leads to sustain in the market. Cold calling is one of the trusted ways of getting to the customers without meeting them. Although the rate of conversion remained very less, for cold calling the quality and accent remains a very important criterion. This activity gives me mixed result. I often got success and generated many leads through it but it also landed me in awkward position where the customer were in different mood and made us hear words for which a marketer should be always prepared to hear. Corporate calls always remained more difficult to crack with respect to retail sector. The corporate were the most difficult and most temping to get the business from. It took me one day to crack Hi-tech Gears. At EDELWEISS BROKING LTD. after getting the product knowledge in the first week at the branch I was also allotted distributor to work with. In the initial phase I was accompanied
16

DEMAT ACCOUNT

by more experienced staff. After I became known to the market and procedure I started attending calls alone only. After the third week my performance also improved and I was able to get close to the targets, though it looked difficult to achieve in the beginning. To get awareness of the every product I attended diversified calls. This helped me to implement cross selling to get better results.

LIMITATIONS:
1. Cold Calling Voice and accent plays a major role. The right time to call a customer cannot be decided, as the customer may in a

different mood at the time of calling. Time consuming Less success rate

2. Corporate Time consuming Contacts with higher authorities play a major role

Description of live experience

I was supposed to use the database provided by the company to make cold calls or by directly meeting people to get new leads. While making cold calls, we need to have: Good Communication Skills (Voice quality is clear and articulate) Persistent and able to bounce back from rejection Good organizational skills. Ability to project a telephone personality (Enthusiasm, friendliness) Flexibility: can adapt to different types of clients and new situations.
17

DEMAT ACCOUNT

si

a good database is very essential

Eighty percent of our business comes from 20 percent of our customers" is a frequent statement at any sales convention. There's hardly a sales executive who is not aware of the 80/20 rule.

y want to go for invest ment While tal ing to customers, I analyze their needs. Whether the purpose or insurance or both. Suggest them the plan that best suits them. If they agree to it then either we send across the agents to close the deal or close it themselves.

18

DEMAT ACCOUNT

Problems faced while selling products: Customer dissatisfied with the services. People fear that Edelweiss Broking Being a Private company and a new entrant may

be able to sustain or not. Past exper ience, word of mouth. Misguidance by agents. People do not want insurance products. Lack of knowledge and less awareness about dema t account. People risk appetite is very low, so they are afraid of mutual fund as well.

19

DEMAT ACCOUNT

Ideas create, values protect

EDELWEISS DEMAT ACCOUNTS

Overview of Demat Account
Demat account allows you to buy, sell and transact shares without the endless paperwork and delays. It is also safe, secure and convenient. In India, a demat account, the abbreviation for dematerialized account, is a type of banking account which dematerializes paper-based physical stock shares. The dematerialized account is used to avoid holding physical shares: the shares are bought and sold through a stock broker. This account is popular in India. The Securities and Exchange Board of India (SEBI) mandates a Demat account for share trading above 500 shares. As of April 2006, it became mandatory that any person holding a Demat account should possess a Permanent Account Number (PAN), and the deadline for submission of PAN details to the depository lapsed on January 2007.

Is a demat account a must?

Now a day, practically all trades have to be settled in dematerialized form. Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of
20

DEMAT ACCOUNT

up to 500 shares to be settled in physical form, nobody wants physical shares any more. So a demat account is a must for trading and investing.

Why Demat?
The demat account reduces brokerage charges, makes pledging/hypothecation of shares easier, enables quick ownership of securities on settlement resulting in increased liquidity, avoids confusion in the ownership title of securities, and provides easy receipt of public issue allotments. It also helps you avoid bad deliveries caused by signature mismatch, postal delays and loss of certificates in transit. Further, it eliminates risks associated with forgery, counterfeiting and loss due to fire, theft or mutilation. Demat account holders can also avoid stamp duty (as against 0.5 per cent payable on physical shares), avoid filling up of transfer deeds, and obtain quick receipt of such benefits as stock splits and bonuses.

Steps

involved

in

opening

demat

account

First an investor has to approach a DP and fill up an account opening form. The account opening form must be supported by copies of any one of the approved documents to serve as proof of identity (POI) and proof of address (POA) as specified by SEBI. Besides, production of PAN card in original at the time of opening of account has been made mandatory effective fromApril01,2006.All applicants should carry original documents for verification by an authorized official of the depository participant, under his signature. Further, the investor has to sign an agreement with DP in a depository prescribed standard format, which details rights and duties of investor and DP. DP should provide the investor with a copy of the agreement and schedule of charges for their future reference. The DP will open the account in the system and give an account number, which is also called BO ID (Beneficiary Owner Identification number).

21

DEMAT ACCOUNT

The DP may revise the charges by giving 30 days notice in advance. SEBI has rationalized the cost structure for dematerialization by removing account opening charges, transaction charges for credit of securities, and custody charges vide circular dated January 28, 2005. Further, SEBI has vide circular dated November 09, 2005 advised that with effect from January 09, 2006, no charges shall be levied by a depository on DP and consequently, by a DP on a Beneficiary Owner (BO) when a BO transfers all the securities lying in his account to another branch of the same DP or to another DP of the same depository or another depository, provided the BO Account/s at transferee DP and at transferor DP are one and the same, i.e. identical in all respects. In case the BO Account at transferor DP is a joint account, the BO Account at transferee DP should also be a joint account in the same sequence of ownership.

Rights
1. You can open more than one depository account in the same name with single DP/ multiple DPs. 2. No minimum balance is required to be maintained in a depository account. 3. You can give a onetime standing instruction to your DP to receive all the credits coming to your depository account automatically.

Procedure
1. Fill account opening form (available with your DP). 2. Give your DP the duly filled account opening form with introduction documents as may be required. 3. Sign agreement with DP (agreement will state rights & obligations of both parties). The agreement will contain the fee structure of your DP. Your DP would give you a copy of this signed agreement for your record. 4. DP would give you Client Id no. (Account no.) Once your depository account is opened. This Client Id no. along with your DP Id no. Forms a unique combination. Both these nos. should be quoted in all your future correspondence with DP/NSDL / Issuing Company/their registrar & transfer (R&T) agent.
22

DEMAT ACCOUNT

5. Your DP would give you pre-printed instruction slips for depository services viz., dematerialization, delivery instruction for trades, etc..Preserve these carefully. 6. Your DP would give you a list of deadlines for giving instructions for various depository activities viz., transfer for effecting sale, purchase etc.. If not, check with the DP.

Required Documents
The extent of documentation required to open a demat Account may vary according to your relationship with the institution. If you plan to open a demat account with a bank, a savings account holder has an edge over the non-account holder. In fact, banks usually offer additional incentives to customers who open a demat account with them.

Along with the application form, your photographs (with co-applicants) and proof of identity/residence/date of birth have to be submitted. The DPs also ask for a DP-client agreement to be executed on non-judicial stamp paper. Here is a broad list (you wont need all of them though):
y y y y y y y y y y y

PAN card A canceled check, Voters ID Passport Ration card Drivers license Photo credit card Employee ID card Bank attestation IT returns Electricity/ Landline phone bill

While they only ask for photocopies of the documents, they will need the originals for verification. You will have to submit a passport size photograph on which you sign across.

23

DEMAT ACCOUNT

Procedure
1. Fill account opening form (available with your DP). 2. Give your DP the duly filled account opening form with introduction documents as may be required. 3. Sign agreement with DP (agreement will state rights & obligations of both parties). The agreement will contain the fee structure of your DP. Your DP would give you a copy of this signed agreement for your record. 4. DP would give you Client Id no. (Account no.) once your depository account is opened. This Client Id no. along with your DP Id no. forms a unique combination. Both these nos. should be quoted in all your future correspondence with DP/NSDL / Issuing Company/their registrar & transfer (R&T) agent. 5. Your DP would give you pre-printed instruction slips for depository services viz., dematerialization, delivery instruction for trades, etc..Preserve these carefully. 6. Your DP would give you a list of deadlines for giving instructions for various depository activities viz., transfer for effecting sale, purchase,etc.. If not, check with the DP.

Edelweiss Demat Account Services

Edelweiss Broking Transacting and investing simplified. Get ready to change the way you transact and invest in financial products and services. Whether you wish to transact in equity, equity & derivatives, IPOs offshore investments or prefer to invest in mutual funds, life & general insurance products or avail money transfer and money changing services, you can do it all through Edelweiss. Simply open a Edelweiss account and enjoy the convenience of handling all your key financial transactions through this one window.

Benefits of having Edelweiss account.

Its cost effective

You pay comparatively lower transaction fees. As an Introductory offer, we invite you to pay a flat fee of just Rs. 750/- and transact through Edelweiss.
24

DEMAT ACCOUNT

Its offers single

Through Edelweiss associates, you can transact in equity, equity and derivatives, offshore investments mutual funds, IPOs life insurance, general insurance, money transfer, money changing and credit cards, amongst others.

Its convenient
You can access Edelweiss services through The internet Transaction kiosks The phone (call & transact) Our all India network of associates on an assisted trade.

It provide you value- added services at www.edelweiss.in you get

Reliable research, including views of external experts with an enviable track record Live news updates from Reuters and Dow Jones CEOs / expert views on the economy and financial markets Tools that help you plan your investments, tax, retirement, etc. in the personal finance section Risk Analyzer for analysis of your risk profile
25

DEMAT ACCOUNT

Asset allocators to build an appropriate investment portfolio Innovative use of technology for facilitating

The benefits:-

Benefits of Demat Account

A safe and convenient way to hold securities; Immediate transfer of securities; No stamp duty on transfer of securities; Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc.; Reduction in paperwork involved in transfer of securities; Reduction in transaction cost; No odd lot problem, even one share can be sold; Nomination facility; Change in address recorded with DP gets registered with all companies in which investor holds securities electronically eliminating the need to correspond with each of them separately; Transmission of securities is done by DP eliminating Correspondence with companies;
26

DEMAT ACCOUNT

Automatic

credit

into

demat

account

of

shares,

arising

out

of

bonus/split/consolidation/merger etc. Holding investments in equity and debt instruments in a single account.

Benefit For Investors

y

Demat account has become a necessity for all categories of investors for the following reasons/ benefits:

SEBI has made it compulsory for trades in almost all scrips to be settled in Demat mode. Although, trades up to 500 shares can be settled in physical form, physical settlement is virtually not taking place for

y y y y

the apprehension of bad delivery on Account of mismatch of signatures, forgery of signatures, fake certificates, etc. It is a safe and convenient way to hold securities compared to holding securities in physical form..

y y y y

No stamp duty is levied on transfer of securities held in Demat form. Instantaneous transfer of securities enhances liquidity. It eliminates delays, thefts, interceptions and subsequent misuse of certificates. Change of name, address, registration of power of attorney, deletion of deceased's name, etc. - can be affected across companies by one single instruction to the DP.

y y

Each share is a market lot for the purpose of transactions - so no odd lot problem. Any number of securities can be transferred/delivered with one delivery order. Therefore, paperwork and signing of multiple transfer forms is done away with. It facilitates taking advances against securities on low margin/low interest.
27

DEMAT ACCOUNT

Points To Remember
1. You may choose your DP based on your evaluation of their reputation, service standards, charges, other conveniences, etc. 2. Open depository account with the same holding pattern as there on existing physical securities. You will need to open separate accounts for every different combination of holding pattern. Eg.: If 100 securities of company ABC & 200 securities of company PQR are registered in the name of X as first holder & Y as second holder, one account in name of X as first holder & Y as second holder is sufficient. Whereas, if 100 securities of company ABC are registered in the name of X as first holder & Y as second holder & 200 securities of company PQR are registered in the name of Y as first holder & X as second holder, you will need to open two accounts, one in the name of X as first holder & Y as second holder and the second in the name of Y as first holder and X as second holder. 3. Account opening procedure should typically take 2-5 days. 4. In case of holdings of a partnership firm, the account should be opened in the name of the partner(s). 5. In case of holdings of a HUF, the account should be opened in the name of the Karta. 6. In case of a minor, the depository account should be opened in the name of the minor and the guardians name should be mentioned. The guardian will sign as signatory on behalf of the minor. For selling the securities of the minor, a court order should be obtained. 7. In case of any difficulties, contact your DP. 8. Only securities admitted by NSDL can be dematerialized. The list is available with your DP. 9. Only securities registered in the name of the account holder can be dematerialized. 10. Dematerialization is normally completed within 15 days after the share certificates have reached the issuer/their R&T Agent. Thus it may take you a month from the date you hand over shares, to receive demat credit. 11. Dematerialization would be done only when the issuer / their R&T Agent is satisfied of genuineness of securities & ownership status 12. All the joint holders should sign the DRF.
28

DEMAT ACCOUNT

13. The pattern of holding in the DRF should match the pattern of holding on the share certificate & the pattern in which account is opened. 14. Demat requests with name(s) not matching exactly with the name(s) appearing on the certificates merely on account of initials not being spelt out fully or put after or prior to the surname, would be processed, provided the signature(s) of the client(s) on the DRF tallies with the specimen signature(s) available with the issuer/ their R & T agent. 15. If the signature in the DRF does not match with the signature available with the issuer/ their R & T agent, the issuer/ their R & T agent may at the time of demat confirmation, ask for additional documentation (like bank attestation/ notarization, etc.) to prove that the certificate belongs to the person who forwarded the DRF.

29

DEMAT ACCOUNT

NEED OF THE STUDY

The need of the study arises because of the reason that a trainee must understand the company, its achievements and tasks, products and services and also to collect information about its competitors, its products and services offered. So that, after understanding and collecting information about the organization and its competitors, a trainee will be able to work well for the organization. From the study I have learned very much, about the company as well as the strategy of the customers, which helps me a lot at my working days.

30

DEMAT ACCOUNT

COMPETITORS

HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8 Lac demat accounts.

HDFC Bank Demat services offers you a secure and convenient way to keep track of your securities and investments, over a period of time, without the hassle of handling physical documents that get mutilated or lost in transit.

HDFC BANK is Depository participant both with National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL).

Features & Benefits

As opposed to the earlier form of dealing in physical certificates with delays in transaction, holding and trading in Demat form has the following benefits:

Settlement of Securities traded on the exchanges as well as off market transactions.

31

DEMAT ACCOUNT

Shorter settlements thereby enhancing liquidity. Pledging of Securities. Electronic credit in public issue. Auto Credit of Rights / Bonus / Public Issues / Dividend credit through ECS. Auto Credit of Public Issue refunds to the bank account. No stamp duty on transfer of securities held in demat form. No concept of Market Lots.

Change of address, Signature, Dividend Mandate, registration of power of attorney, transmission etc. can be effected across companies held in demat form by a single instruction to the Depository Participant (DP). Holding / Transaction details through Internet / email.

In case you need any more information or have any queries , feedback & complaints , you may please mail us at dphelp@hdfcbank.com

Secured & easy transaction processing

HDFC Bank Ltd provides convenient facility called 'SPEED-e' (Internet based transaction) whereby account holder can submit delivery instructions electronically through SPEED-e website (https://speede.nsdl.com). SPEED-e offers secured means of transaction processing
32

DEMAT ACCOUNT

eliminating preparation of instruction slips and submission of the same across the counter to

the depository participant. The 'IDEAS' facility helps in viewing the current transactions and balances (holdings) of Demat account on Internet on real time basis.

Disclaimer:

Whatever have been stated above are in the good interest of the Investor / Demat Applicants / holders to provide a brief picture about the depository system. You are requested go through the guidelines of the depositories before taking any further action. For detailed guidelines, you are requested to approach your nearest HDFC Bank branch. HDFC Bank will not be responsible for any misunderstanding / act based on the above. Also HDFC Bank might ask for additional information / documentation than what has been stated above to process your application / instruction.

33

DEMAT ACCOUNT

ICICI DIRECT

ICICI Direct (or ICICIDirect.com) is stock trading company of ICICI Bank. Along with stock trading and trading in derivatives in BSE and NSE, it also provides facility to invest in IPOs, Mutual Funds and Bonds.

Trading is available in BSE and NSE

ICICI Direct offers 3 different online trading platforms to its customers Type of Account

1. Share Trading Account

Share Trading Account by ICICI Direct is primarily for buying and selling of stocks in BSE and NSE. This account allows Cash Trading, Margin Trading,

Margin PLUS Trading, Spot Trading, Buy Today Sell Tomorrow and Call and Trade on phone. ICICIDirect.com website is the primary trading platform for this trading account. They also provide installable application terminal based application for high volume trader.

34

DEMAT ACCOUNT

2. Wise Investment Account

1. Online Mutual funds investment allows investor to invest on-line in around 19 Mutual Fund companies. ICICI Direct offers various options while investing in Mutual Funds like Purchase Mutual Fund, Redemption and switch between different schemes, Systematic Investment plans, Systematic withdrawal plan and transferring existing Mutual Funds in to electronic mode. This account also provides facility to invest in Government of India Bonds and ICICI Bank Tax Saving Bonds. 2. Active Trader account gives more personalized investment options to the investors. It allows investor to use online and offline stock trading. It also provides with independent market expertise and support through a dedicated Relationship Manager from ICICI.

Active Trader also provides commodity trading.

Brokerage and fees

Account opening fees : Rs 750/- (One time nonrefundable) Brokerage: ICICIDirect.com brokerage varies on volume of trade and inclusive of demat transaction charges, service taxes and courier charges for contract notes. It ranges from 0.1% to 0.15% for margin trades, 0.2% to 0.425% for squared off trades and 0.4% to 0.85% on delivery based trades.

Disadvantages of ICICI Direct

1. Getting access to ICICIDirect.com website during market session can be frustrating. 2. Brokerage rates are too high
35

DEMAT ACCOUNT

OBJECTIVE

To find the market potential and market penetration of Edelweiss broking product offerings in Delhi,Gurgaon,Noida and local area nearby them.

To collect the real time information about preference level of customers using Demat account and their inclination towards various other brokerage firms e.g. India bulls, Share khan, India in foline, Religare, Alan- kit, Unicon.

y y y

To expand the market penetration of Edelweiss broking ltd. To provide pricing strategy of competitors to fight cut throat competition. To increase the product awareness of Edelweiss broking as single window shop for investment solutions.

36

DEMAT ACCOUNT

RESEARCH METHODOLOGY
INTRODUCTION
Research Methodology refers to search of knowledge .one can also define research methodology as a scientific and systematic search for required information on a specific topic. The word research methodology comes from the word advance learner s dictionary

meaning of research as a careful investigation or inquiry especially through research for new facts in my branch of knowledge for example some author have define research methodology as systematized effort to gain new knowledge.

TYPES OF RESEARCH

ANALYTICAL RESEARCH:It has to used facts or information already available and analyze these to make a critical evaluation of material.

SAMPLE SIZE:
Considering the constraints it was decided to conduct the study based on sample size of 100 people in specific age groups.

37

DEMAT ACCOUNT

METHODS OF DATA COLLECTION

In the project work Primary data secondary data (both) sources of data has been used .

1. Primary data collection:

In dealing with real life problem it is often found that data at hand are inadequate, and hence, it becomes necessary to collect data that is appropriate. There are several ways of collecting the appropriate data which differ considerably in context of money costs, time and other resources at the disposal of the researcher.

Primary data can be collected either through experiment or through survey.

The data collection for this study was done in the following manner:

Through personal interviews:A rigid procedure was followed and we were seeking answers to many pre-conceived questions through personal interviews.

Through questionnaire:Information to find out the investment potential and goal was found out through questionnaires.

Through Tele-Calling:Information was also taken through telephone calls.

38

DEMAT ACCOUNT

2. Secondary sources of data:

In the secondary sources of data is used. (Internet , mazazine ,books, journals)

TOOLS OF ANALYSIS

In the project work quantitative technique & percentage method are has been used.

RESEARCH DESIGN

For the proper analysis of data simple quantitative technique such as percentage were used. It help in marketing more accurate generalization From the data available .The data which was collected from a sample of population was assumed to be representing entire population was interested .Demographic factor like age, income and educational background was used for the classification purpose .

39

DEMAT ACCOUNT

DATA ANAL

AND NTE P ETAT

Q1 In which of these Fin nci l Inst u ents do you invest into?

Fin nci l Inst u ent

utul Fund

Pe cent e of espondent
75% 16% 7%
2%

nline t din eivtive

Bond

Result of Preference of Investment

Interpretati n:
This shows that although the mutual funds market is on the rise yet, the most favoured investment continues to be in the Share Market. So, with a more transparent syst em, invest ment in the Stock Market can definitely be increased.

40

DEMAT ACCOUNT

Q2 A e you w e of online h e t din ?

Aw e of online sh e t din

Pe cent e of espondent

Yes No

72% 28%

Result of w eness of online t din

Interpretati n:
With the increase in cyber education, the awareness towards online share trading has increased by leaps and bounds. This awareness is expect ed to increase further with the increase in Internet education.
41

DEMAT ACCOUNT

Q3 He d bout delweiss B okin Ltd ?

Aw eness of delweiss B okin Ltd Yes

Pe cent e of espondent

48%

Result of Aw eness of delweiss b okin Ltd

8%
52% yes

No

52%

Interpretati n: This pie-chart shows that Edelweiss has a reasonable amount of Brand
awareness in terms of a premier Retail stock broking company. This brand image should be further leveraged by the company to increase its market share over its competitors.
42

DEMAT ACCOUNT

Q4 o you know bout the f cilities p ovided by delweiss B okin Ltd ?

Aw eness of delweiss B okin e vices Yes No

Pe cent e of espondent

36% 64%

Aw eness of delweiss B okin F cilities

36%

yes 64% No

Interpretati n:
Although there is sufficiently high brand equity among the target audience yet,it is to be noted that the customers are not aware of the facilities provided by the company meaning thereby, that, the company should concentrate more towards promotional tools and increase its focus on product awareness rather than brand awareness.
43

DEMAT ACCOUNT

Q 5 Which b nk is B okin house is v il ble eve ywhe e?

Co p ny N delweiss ICICI H FC

Pe cent e of espondent 15 20 15

20 18 16 14 12 10 8 6 4 2 0 E lw iss I I I H F

Interpretati n:30% have respondent of Edelweiss Broking Ltd, 30% have respondent of HDFC, 40% have respondent of ICICI.

44

DEMAT ACCOUNT

Q 6 Which b nkin of se vices?

t ccount offe ed you

e no

Co p ny N

Pe cent e of espondent 22 10 18

delweiss B okin Ltd H FC ICICI

25 20 15 10 5 0 E lw iss H F I I I

INTE P ETATION:
44% have respondent of Edelweiss Broking Ltd, 20% have respondent of HDFC, 36% have respondent of ICICI.

45

DEMAT ACCOUNT

Q 7 Which b okin house p ovide you f cility?

bette e

il

Co p ny N delweiss H FC ICICI

Pe cent e of espondent 15 13 22

25 20 15

10 5 0 Edelweiss H

INTE P ETATION:

30% have respondent of Edelweiss Broking Ltd., 26% have respondent of HDFC, 44% have respondent of ICICI

46

DEMAT ACCOUNT

Q 8 Which co p ny p ovide less BR KARAG

te ?

Co p ny N delweiss H FC ICICI

Pe cent e of espondent 22 11 17

25
20 15 10 5 0

E elw eiss

H F



I I I



44% have respondent of Edelweiss broking ltd., 22% have respondent of HDFC, 34% have respondent of ICICI.

IN RPR A I N:

47

DEMAT ACCOUNT

Q 9 Which co p ny p ovide you l nd se vices?

e nu be of p oduct

Co p ny N delweiss H FC ICICI

Pe cent e of espondent 22 10 18

25 20 15 10 5 0 E elweiss H F I I I

INTE P ETATION:- 44% have respondent of Edelweiss Broking Ltd., 20% have
respondent of HDFC, 36% have respondent of ICICI.

48

DEMAT ACCOUNT

Re pr e s e nt a pi e c hart

USE OF DE
Edelweiss

T ACCOUNT
I CI CI HDFC

28% 41%

3 1%

49

DEMAT ACCOUNT

O B SERVATION
T o st udy t he sales and dis tr ibut ion ma nagement and i mpr ove t he Cust omer Acquis it ion Pr oces s by anal yzi ng t he cons umer beha vi or, r es pons e a nd mi nds et t owar ds t he pr oduct a nd s er vi ces t he company off er s.

1. Preference of Investment:
Consumers want to invest 75% in Mutual funds, 16% in Bonds, 7% in online trading and 2% in Derivatives.

2. Awareness on Online Share Trading

72% consumers are aware of online share trading and 28% consumers are not aware of online share trading.

3. Awareness of Edelweiss Broking

48% consumers are know about Edelweiss Broking and 52% consumers are not know about Edelweiss Broking.

4. Awareness about facilities provided by Edelweiss Broking:

36% consumers are aware about the facilities provided by Edelweiss Broking and 64% consumers are not know about the facilities provided by Edelweiss Broking.

5 . Availability of Bank
30% have respondent of Edelweiss Broking Ltd, 30% have respondent of HDFC, 40% have respondent of ICICI.

6. Which banking Demat account offered you a large no. of services?

4% have respondent of Edelweiss Broking Ltd., 20% have respondent of HDFC, 36% have respondent of ICICI.

7. Better email facility provided by bank

30% have respondent of Edelweiss Broking Ltd., 26% have respondent of HDFC, 44% have respondent of ICICI.

8. Provide a less BROKARAGE rate

44% have respondent of Edelweiss Broking Ltd., 22% have respondent of HDFC, 34% have respondent of ICICI.

9. Provide a large no. of Products and services

44% have respondent of Edelweiss Broking Ltd., 20% have respondent of HDFC, 36% have respondent of ICICI.
50

DEMAT ACCOUNT

LIMITATION
y The time constraint was one of the major problems. y The study is limited to the different schemes available under the Demat

account selected.
y

The lack of information sources for the analysis part.

y Geographical locations.

Extreme variability in MARKET .

SUGGESTION

1. The Brand image of Edelweiss Broking Ltd. is good in market but according to customer satisfaction the company has to provide the better service. And also change the Market strategy. 2. They should focus on print and electronic media advertisements to make more people aware about them. 3. They should provide proper guidance to their customers about demat. 4. They should provide should offers and facilities to their customers to increase their attractiveness about demat. 5. For opening an account they require lots of s ignatures in a kit, which should be reduced.

51

DEMAT ACCOUNT

SUMMARY AND CONCLUSION

SUMMARY OF LEARNINGS EXPERIENCE

To get initial success in this field is very difficult. Although the business generation

becomes easier with time as we serve more people who then get added up in the loyal clientele. Thus time and service are two most factors to get in this field. Also the corporate remains a very important segment which gets business in bulk but

retail cannot be ignored which makes your business ticking. Customer remains in the pivotal position.

CONCLUSION
Edelweiss Demat Account is better than other Demat account. Edelweiss Broking Ltd. have good return of investment. A good brand is always welcomed over here people are aware of quality so they go for ready to spend bucks of money. At last all conclusion be concluded by that Edelweiss Broking Ltd. is still growing industry in India Edelweiss Broking Ltd. account have less brokerage rate . It provide a security with the use of special type of key .

52

DEMAT ACCOUNT

BIBLIOGRAPHY

Websites:

www.edelweiss.in www.hdfc.com www.icicidirect.com www.demataccount.com www.google.com

Reference boo s:
1. FINANCIAL INSTITUTIONS AND MARKETS 2.INVESTMENT MANAGEMENT

53

DEMAT ACCOUNT

ANNEXURE

MARKET RESEARC QUESTIONNAIRE PLEASE TICK MARK T E APPROPRIATE C OICES

DEMOGRAPHIC

NAME: .

Address

Phone no: .. Tpes of business: ..

Gender a. Male b. Female

54

DEMAT ACCOUNT

Your annual income?

  0-4,00,000 b  4,00,001-8,00,000 c  8,00,001-12,00,000 d  12,00,001-15,00,000

Q I NNAIR

Q1 In which of these Fin nci l Inst u ents do you invest into?

h es e iv tives

utu l Funds

Bonds

Q2 A e you w e of online h e t din ?

Yes

No

Q3 He d bout delweiss B okin Ltd ?

Yes

No
55

DEMAT ACCOUNT

Q4 o you know bout the f cilities p ovided by delweiss B okin Ltd ?

Yes

No

Q5 With which co p ny do you h ve you ccount?

delweiss B okin

ICICI i ect

H FC

the s (ple se specify)

Q6 Which b nk is e sily v il ble eve ywhe e?  Edelweiss b okin Ltd  H FC  ICICI

56

DEMAT ACCOUNT

Q7. Which ban ing Demat account offered you a large no. of ser ices  Edelweiss bro ing Ltd.  HDFC  ICICI

Q8. Which ban pro ides you a better email facility?

 Edelweiss bro ing Ltd.  HDFC  ICICI

Q9. Which companies pro ide a less BROKARAGE rate?  Edelweiss bro ing Ltd.  HDFC  ICICI

57

DEMAT ACCOUNT

Q10. Which company pro ide you a large number of product and ser ices?  Edelweiss bro ing Ltd.  HDFC  ICICI

58