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AN
ANALYTICAL
STUDY
OF
DEMAT
ACCOUNT-WITH
Maninder Bedi
Student, BBA
DSPSR
INTRODUCTION
In India, shares and securities are held electronically in a dematerialized (or "Demat")
account, instead of the investor taking physical possession of certificates. A Dematerialized
account is opened by the investor while registering with an investment broker (or subbroker). The Dematerialized account number is quoted for all transactions to enable
electronic settlements of trades to take place. Every shareholder will have a Dematerialized
account for the purpose of transacting shares. In india, shares and securities are held
electronically in a dematerialized (or "Demat") account, instead of the investor taking
physical possession of certificates. A Dematerialized account is opened by the investor while
registering with an investment broker (or sub-broker). The Dematerialized account number is
quoted for all transactions to enable electronic settlements of trades to take place. Every
shareholder will have a Dematerialized account for the purpose of transacting shares.
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India(SEBI) mandates a demat account for share trading above 500 shares. As of
April2 0 0 6 , i t b e c a m e m a n d a t o r yt h a t a n yp e r s o n h o l d i n g a
f o r d e m a t a c c o u n t s h o u l d 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
alltrades
have
to
be
settled
and
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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 s h a r e s e a s i e r , e n a b l e s q u i c k o w n e r s h i p o f s e c u r i t i e s o n s e t t l e m e n t
r e s u l t i n g i n i n c r e a s e d l i q u i d i t y, a v o i d s c o n f u s i o n i n t h e o w n e r s h i p t i t l e
of securities and provide easy receipt of public issue allotment.
It also helps you avoid bad deliveries caused by signature mismatch, postal delays a n d l o s s
of certificates in transit. Further, it eliminates risks associated
with
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DP
You can open more than one depository account in the same name
w i t h single DP/ multiple DPs.
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You can give a onetime standing instruction to your DP to receive all the
credits coming to your depository account automatically.
DEMAT Benefits?
Nomination facility.
Advantages of demat
The bonus/right shares allotted to the investor will be immediately credited into his
account.There is no risk due to loss on account of fire, theft or mutilation. Transaction costs
are usually lower than that in the physical segment. A demat account also helps avoid
problems typically associated with physical share certificates. For example: delivery failures
caused by signature mismatch, postal delays and loss of certificate during transit. Further, it
eliminates the risks associated with Forgery and due to damaged stock certificates. Demat
account holders also avoid stamp duty (as against 0.5 per cent payable on physical shares)
and filling up of transfer deeds. The biggest advantage of having demat account is that you
don't have to pay for stamp since these are electronically stored which reduces the transaction
cost.. .
Disadvantages of Demat
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After liquidating the holdings, many Indian investors don't close their dp account.
They are unaware that DPs charge even on dormant accounts.
PAN (Compulsory)
Address Proof
KYC details
OBJECTIVE OF STUDY
The primary objective is:
RESEARCH METHODOLOGY:
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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.
Methodology of the project starts with
In the first phase we are trained and they teach us different things about market.
After that they conduct a mock viva, in this they ask about the real life problem faced
by the customers.
Then we have to visit them and get the formed filled from them.
In the project work Primary data secondary data (both) sources of data has been used:
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surveys, and organizational records. In sociology primary data is data you have collected
yourself and secondary data is data you have gathered from primary sources to create new
research. In terms of historical research, these two terms have different meanings. A primary
source is a book or set of archival records. A secondary source is a summary of a book or set
of records.
LIMITATION
Since the area is not known before it takes lot of time in convincing
people tostart investing in shares primarily in IPOs.
Percentage of respondent
Yes
70%
No
30%
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1st Qtr
2nd Qtr
YES-70%
NO-30%
Financial Instrument
Percentage of respondent
Mutual Fund
75%
Bond
16%
Online trading
7%
Derivative
2%
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1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Mutual fund-75%
Bond-16%
Online Trading-7%
Deivativre-2%
Interpretation
This shows that although the mutual funds market is on the rise yet, the most favored
investment continues to be in the Share Market. So, with a more transparent system,
investment in the Stock Market can definitely be increased.
Percentage of respondent
Yes
72%
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No
28%
1st Qtr
2nd Qtr
YES-72%
NO-28%
Interpretation:
With the increase in cyber education, the awareness towards online share trading has
increased by leaps and bounds. This awareness is expected to increase further with the
increase in Internet education.
percentage of respondent
YES
70%
NO
30%
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1st Qtr
2nd Qtr
70% YES
30% NO
Interpretation:
This pie-chart shows that this brand image should be further leveraged by thecompany to
increase its market share over its competitors.
Percentage of respondent
YES
36%
NO
64%
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1st Qtr
2nd Qtr
YES 64%
NO 34%
Interpretation:
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.
Company Name
Percentage of Respondent
Sharekhan ltd.
22
HDFC
11
ICICI
17
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25
20
15
10
Sharekhan ltd.
HDFC
ICICI
INTERPRTETATION:
44% have respondent of Sharekhan ltd., 22% have respondent of HDFC, 34% have
respondent of ICICI.
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FINDINGS
1. Preference of Investment:
Consumers want to invest 75% in Mutual funds, 16% in Bonds, 7% inonline trading and 2%
in Derivatives.
consumers
are
aware
about
the
facilities
provided
by
Sharekhan
ltd.and 64% consumers are not know about the facilities provided bySharekhan ltd.
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44% have respondent of Sharekhan ltd., 22% have respondent of HDFC,34% have
respondent of ICICI.
The company should also organize seminars and similar activities to enhance
theknowledge of prospective and existing customers, so that they feel morecomfortable while
investing in the stock market.
References
Websites:
https://www.scribd.com/doc/31134020/Share-Khan
www.slideshare.net/gandhichintan/project-report-of-share-khan
www.sharekhan.com/stock-market/company.../company-snapshot.htm
www.sharekhan.com/AboutUs/AboutUs.htm
www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId.
www.sharekhan.com/businesspartner/howtopartner.aspx
www.sharekhan.com/Brochures/74/PMSProductHome.htm
www.sharekhan.com/stock-market/company.../company-snapshot.htm
ww.sharekhan.com/Trade Tiger
www.sharekhan.com/sfsl/finance.htm
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BOOKS:
Marketing research bydavid j. luck ,Ronald s. rubin :7 edition
Market research by gcbery: 4 edition
Marketing research by harper w. boyd, jr, ralph westfall, Stanley f. stasch: 7 edition
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