Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
ON
DEPOSITORY SYSTEM
FOR
JALGAON PEOPLES COOPRATIVE BANK
SUBMITTED BY URWASHI DILEEP TAYADE
Under the guidance of
"Prof. -----------------"
SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY
In the partial fulfillment of the requirements for the award of the degree of MASTERS IN BUSINESS
ADMINISTRATION (MBA)
Through
Progressive Education Societys
MODERN COLLEGE OF ENGINEERING MBA DEPARTMENT
1186A, Shivajinagar, Pune 411 005
BATCH 2015-17
Company Certificate
(ON LETTERHEAD OF COMPANY)
TO WHOM-SO-EVER IT MAY CONCERN
This is to certify that (Student Name)______________ has completed his / her Project work on the topic
_______________________________ during the period from ______ to ___________ .
She / He has been sincere, hardworking and punctual in his/ her work. We wish him/ her success in her
future endeavors.
Authorized signatory
Designation
Company Seal
DECLARATION
I (Name of Student)_________________________________________________, of
MBA :_______ Roll no_____ hereby declare that the Project work titled
____________________________________________________________________which
has been submitted to University of Pune, is an original work of the undersigned and
has not been reproduced from any other source.
Signature Date:
Name Seat No:
Place
ACKNOWLEDGEMENT
Signature Date:
Place
INDEX
TABLE NO.
PARTICULARS
EXECUTIVE SUMMARY
LITERATURE REVIEW
COMPANY PROFILE
RESEARCH METHODOLOGY
DATA ANALYSIS
CONCLUSIONS
ANNEXTURE
PAGE NO.
EXECUTIVE SUMMARY
For preparing the project report, I have completed internship in Jalgaon peoples
cooperative bank for 2 months during the suggested duration from 4-06-2016 to
30th-08-2016, to avail the necessary information. I have filled up the questionnaire
with the customers and employees of JPC Bank. The blend of learning and
knowledge acquired during my practical studies at the Bank is presented in
this project report. The project report starts with the research objectives, basic
information regarding the research approach, the sample size for my research is
100 and I have used simple random sampling method for my research and the
sources for data collection are both primary sources and secondary sources. I have
written findings and some of the limitations which I have faced during my research
work .I hope that the information incorporated in this project report would be
appreciated as I have put in my efforts in leaving no stone unturned as I consider it
to be true, fair and relevant in its content and context to the best of my knowledge
and ability
INTRODUCTION
Depository system essentially aims at eliminating the voluminous and cumbersome paper work
involved in the scrip-based system and offers scope for paperless trading through state-of-theart technology. It is an institution which maintains an electronic record of ownership or
securities. The storage and handling of certificates is hence immediately eliminated which
generates a reduction in costs like back office cost for handling, transporting and storing
certificates.
Depositary participant is an institution akin to bank for securities. When an investor hands over
securities to a depository participant, investors account is credited. The investors depository
system account will show their holdings. His account is updated for his transactions of sale and
purchase but without physical movement of scripts or transfer deeds. In depository system, share
certificates belonging to the investors are dematerialized (demats). Dematerialisation or Demat
is a process whereby investors securities like shares, debentures etc., are converted into
electronic data and stored in computers by a Depository. Securities registered in investors name
are surrendered to depository participant (DP) and these are sent to the respective companies
who will cancel them after Dematerialization and credit investors depository account with the
DP. The securities on Dematerialization appear as balances in ones depository account. These
balances are transferable like physical shares. If at a later date, investors wish to have these
demat securities converted back into paper certificates, the Depository does this and their
names are entered in the records of depository as beneficial owners. The beneficial ownership
will be with investor but legal ownership will be with the depository. Consequently, benefits like
interest, dividend, and rights: bonus and voting rights will be with investors. Since depository is
to get securities transferred in its name, the depository name will be registered in the ownership
register maintained by the company. Thus, instead of name of several owners, the name of
depository figures in the register of company.
Since transfer will be affected only in depository, register of company need not be updated on
every transactions of sale or purchase of companys share. It alleviates the hardships currently
faced by the investors and it also offers option for converting the shares from electronic to
physical or paper form through a process of rematerialisation (remat). Depository system is,
indeed, time tested and long prevalent in many advance countries and has been playing a
significant role in stock markets around the world.
The depository system comprises of:
1)
2)
3)
4)
Depository
Depository Participants (DPs)
Companies/issuer
Investors
The first depository was set up way back in 1947 in Germany. In India it is a relatively new
concept introduced in 1996 with the enactment of Depositories Act 1996. Their operations are
carried out in accordance with regulations made by SEBI, bye-laws and rules of Depositories Act
and SEBI (Depositories and Participants) Regulations Act 1996.
Need for Depository System :
The trading in physical segment is full of inefficiencies due to handling of large volumes of certificates
and also involves various other problems like delays in transfer, delay in settlement, loss in transit,
forgerly certificates, stolen certificates, mutilation of certificates, postal losses, court cases, litigation etc.
To overcome these deficiencies, a new system of trading, viz. Depository system was introduced, which
facilitates investor to hold securities in electronic form and to trade in these securities. The first
depository set up in India is National Securities Depository Limited (NSDL) and is promoted by IDBI,
UTI and NSE.
LITERATURE REVIEW
Continuously compounded returns are used to denote returns and standard deviation is calculated as a
proxy for volatility measure.
Email : investors@cdslindia.com
Who can be a DP ?
Public financial institutions, scheduled commercial banks, foreign banks operating in India with the
approval of the Reserve Bank of India, state financial corporations, custodians, stock-brokers, clearing
corporations / clearing houses, NBFCs and registrar to an issue or share transfer agent complying with the
requirements prescribed by SEBI can be registered as DP. Banking services can be availed through a bank
branch whereas depository services can be availed through a DP.
CHAPTER 2
COMPANY PROFILE
NAME :- JALGAON PEOPLE S COOPERATIVE BANK Ltd
Head office 152,polan peth,dena bazaar, jalgaon.
leadership
the
Joshi.The main motive behind this inception was to cater the needs of the common man.It was
only under the able leadership of Shri kakasahebh Ramdas Dhanu Patil (vice president )in
1948 that the bank gained its operational momentum and created an impact on peoples
mind.
In 1969,, Late Shri Yashwantrao Patil (Chairman) extended the bank's areas of operation & new
branches were setup at Ring Road, Asoda, Bhadli, Nashirabad. But it was in 1984 that the bank
established a firm footing and got recognized as a dependable peoples' bank. Late Shri
Appasaheb Prabhakar Ramdas Patil, the chairman during this period, was a man with a vision
and he led the bank through a technological and professional restructuring, eventually providing
better services to the customers.
In 1994 the bank celebrated its Diamond Jubilee under the leadership of Late Shri Appasaheb
Patil which was eventually passed on to Shri Babulal Ramlal Choube. During their tenure they
both acquainted the customers & staff members to professionalism in banking operations and
helped the bank triumph a One Crore net profit, first time ever in the bank's history till then.
In 2006, Shri Bhalchandra Patil took over the bank's charge and is still leading the bank through
its golden era. Bank has spread under his leadership through 36 branches at Jalgaon city and
district, Dhule, Nasik, Aurangabad, Pune, Mumbai, Malkapur and Burhanpur (Madhya Pradesh).
SERVICES
The Bank is a Corporate Agent of Life Insurance Corporation of India(LIC) vide License No.
80001961 (license to act as a Corporate Agent under the Insurance Act, 1938 (IV of 1938).
The Bank also Corporate Agent of ICICI Lombard General Insurance Co. vide License No. ILG
5923705.
At Jalgaon Peoples Co-op. Bank, you can avail the services of trained & certified professional
consultants from LIC, who can guide you in ascertaining your insurance needs and assist you in
making an insurance plan that is just right for you. Customers can avail this facility at any of our
branches.
PANCARD
Back
We extend our services to accepting and processing PAN card applications for our customers and
shareholders. This facility is available at all our branches.
SMS ALERT SERVICES
On registration, a customer can get his account transaction details instantly on his mobile
through SMS
Other facilities in SMS Alert Service are:
ATM withdrawal.
Cash withdrawal.
IBC/OBC release.
Notifications to Pigmy A/c holder by providing total Credit/Debit and Closing balance
(Frequency 15 days)
1. I/We declare that all particulars and information given in this application form are true,
correct and complete and up to date to the best of my knowledge and in all respects.
2. I/We agree and understand that The Jalgaon Peoples Co-op Bank Ltd. has all rights to
reject my application for providing access to Mobile Banking facility without assigning
any reasons thereof. The bank also reserves rights to retain all documents submitted with
the application.
3. Transaction initiated through Mobile Banking application are real time / instantaneous
transactions and such are irrecoverable / non-retractable; Bank shall not entertain any
request for revocation of transaction or stop payment request for transaction initiated
through Mobile Banking.
4. Customer shall be responsible for the safe custody and security of the Mobile Banking
application downloaded on their mobile phones to avoid unauthorized usages and should
immediately inform the Bank for disabling of Mobile Banking facility in case of loss or
theft of mobile phone.
5. For security reason customer are advised not to create simple MPIN like 1234 or 1111 or
2222 etc. which can be easily tried by third persons.
6. Transaction request of the Account Holder shall be processed solely based on the
information provided by Account Holder i.e Account Number, MMID, Mobile Number,
IFSC Code. Account Holder shall be solely responsible for wrong credit due to wrong
information provided by the Account Holder.
7. The Bank shall not be responsible for non-execution or delay in execution of Account
Holders request for transaction caused due to system or communication failure or due to
any other reason beyond the control of the bank.
8. Customer shall abide by the limits imposed by the Bank on maximum number of
transaction and maximum amount permitted through Mobile Banking. Bank reserves the
right to change maximum number of transaction and amount any time.
9. The Bank may levy charges for Mobile Banking facility and Account Holder shall bear
the charges as levied by the Bank from time to time for this facility. The charges as and
when levied / modified shall be displayed on the banks website and it shall be the
responsibility of Account Holder to visit the Banks website from time to time.
10. Customer shall not use Mobile Banking channel for transfer of funds for illegal activities.
11. Bank shall be at liberty to affect any change in terms and conditions from time to time,
without any prior notice. In addition to above Account Holders shall also be guided by
Terms and Conditions of Mobile Banking Facility as mentioned at the Banks website.
16.
17.
18. MSCBA Best CEO Award 2016
19. Bapuraoji Deshmukh Best CEO award is given to our Hon. CEO Mr Anil Patkar by
Maharashtra Urban Coop Bank Association Mumbai.
20. Maharashtra Urban Coop Bank Association Mumbai.
21. Times Accent HR leader award 2016
22. Most Influential HR leader award is given to our Hon. DGM Mrs Swati Sarda by Times
Accent.
23. Times Accent
24.
25.
26. Banko Award 2015
27. Banko award in the Rs.1001 to Rs.1750 crores Deposit category
28. Banko
29. Banking Frontiers award 2015
30. Banking Frontiers award 2015 in following categories :
31. 1) Best CIO award to Mr.Santosh Wani, General Manager- Information Technology.
32. 2) Best CBS Initiative
33. 3) Best Marketing Initiative
34. Banking Frontiers
35.
36.
37. Skoch ward 2015
38. awarded by skoch award for HR, CSR and Customer services
39. skoch consulting services
40. Banco award 2014
41. banco award 2014
42. banco
43.
44.
45. Special Loans schemes_ Banking Frontiers 2014
46. Our Bank has been awarded Special Loans schemes by Banking Frontiers.
47. Banking Frontiers
48. Best Chairman award_ Banking Frontiers 2014
49. Your bank's Chairman Mr.Bhalchandra Patil has been awarded as Best Chairman award
by Frontiers 2014.
50. Banking Frontiers
51.
52.
53. Skoch award
54. Gold Award for Excellence in Banking by Skoch Consultancy Services.
55. Skoch Consultancy Services
56. NUBA Award
57. Awarded by Nasik Urban Bank Association as Best Cooperative Bank in North
Maharashtra region.
58. NUBA
59.
60.
61. Banko Award 2013
62. The Jalgaon Peoples Co-op. Bank Ltd. Jalgaon, has achieved theBanko award for Best
Bank ( category Deposits of 500 to 1000 cr )
63. Banko
64. Banking Frontier 2013
65. The Jalgaon Peoples Co-op. Bank Ltd. Jalgaon, has achieved the Banking Frontier award
for Best Solution for Credit Rating.
66. Banking Frontier
67.
History of the banking sector
Banking sector play an important part in financing the various business and household
sector .whether the business is small scale or major industry finance for various
purpose is needed to meet the requirements due to interface this sector has
flourished .In older days due to Zamindaar and Savkari system of lending money,many
people were exploited and where force to go back lenders decision .But due to RBI and
various government bodies
Research Methodology:
Although India adopted multi-depository system model to provide competitive and healthy
depository system for surpass services to Investors. There is a chance to various entities to enter
into Depository system but only two organizations National Securities Depository Ltd (NSDL)
and Central Depository Services Ltd (CDSL) are providing depository services presently.
The data has been collected from the following sources:1.
Primary data
2.
Secondary data
Primary data:
In this study the questionnaire method have been used to collect primary data.
Secondary data:
Secondary data is collected from the website of www. jpcbank.co.in , NSDL (www.nsdl.co.in)
and CDSL (www.cdsl.ac.in), website of Indian central depository system (CDS), published
reports of NSDL and Govt. of India, Depository Act-1996, SEBI Act-1992, and Capital Market
Services, published books and printed material on financial services or Intermediaries.
4) To analyze services rendered and quality among the DPs and opinions of investors with
regard to the functioning of NSDL.
5) To identify the Investors expectations from the DP companies and to exhibit the
Investors perceptions on the services offered by the DP companies .
6) To make appropriate and relevant recommendations to the management of the
organization under study.
Enables surrender and withdrawal of securities to and from the depository through the
In India a depository has to be promoted as a corporate body under Companies Act, 1956. It is
also to be registered as a depository with SEBI. It starts operations after obtaining a certificate of
commencement of business from SEBI. It has to develop automatic data processing systems to
protect against unauthorised access. A network to link up with depository participants, issuers
and issuers agent has to be created.
Depository, operating in India, shall have a net worth of rupees one hundred crore and
instruments for which depository mode is open need not be a security as defined in the Securities
Contract (Regulations) Act 1956. The depository, holding securities, shall maintain ownership
records in the name of each participant. Despite the fact that legal ownership is with depository,
it does not have any voting right against the securities held by it. Rights are intact with investors.
Account opening
Facilitates dematerialization
Beneficial owner is a person whose name is recorded as such with a depository. It means a
person who is engaged in buying and selling of securities issued by the companies and is
registered his/ her securities with the depository in the form of book entry. And he/ she has all the
rights and liabilities associated with the securities
Facilities offered by depository system:
1) Dematerialization: It is a process of conversion of physical share certificate into
electronic form. So, when a shareholder uses the dematerialization facility, company
take back the shares, through depository system and equal numbers of shares are
credited in his account in e-form.
2) Rematerialization: Rematerialization is the exact reverse of Dematerialization. It refers
to the process of issuing physical securities in place of the securities held electronically in
book-entry form with a depository.
Other Services:
a) Pledging Dematerialized Shares: Dematerialized shares could be pledged; in fact, this
is more advantageous as compared to pledging share certificates. After loan is repaid one
can request for a closure of pledge by instructing ones DP through a standard format.
The pledgee on receiving the repayment as well as the request for closure of pledge will
instruct his DP accordingly. Even the locked-in securities can be pledged. The pledger
continues to remain the beneficiary holder of those securities even after the securities are
pledged.
b) Initial Public Offerings: Credits for public offers can be directly received into demat
account. In the public issue application form of depository eligible companies, there will
be a provision to indicate the manner in which securities should be allotted to the
applicant. One is to mention ones client account number and the name and identification
number of DP. All allotment due to investor will be credited into required account.
c) Receipt of Cash/non-cash Benefits: When any corporate event such as rights or bonus
or dividend is announced for a particular security, depository will give the details of all
the clients having electronic holdings in that security as of the record date to the registrar.
The registrar will then calculate the corporate benefits due to all the shareholders. The
disbursement of cash benefits such as dividend/ interest will be done directly by the
registrar. In case of non-cash benefits, depository will directly credit the securities
entitlements in the depository accounts of all those clients who have opted for electronic
allotment based on the information provided by the registrar.
d) Stock Lending and Borrowing: Through the depository account securities in the demat
form can be easily lent/ borrowed. Securities can be lent or borrowed in electronic form
through an approved intermediary, who has opened a special intermediary account with
a DP. Instructions are to be given to DP through a standard format (which is available
with DP) to deposit securities with the intermediary. Similarly to borrow securities from
the intermediary, one has to instruct DP through a standard format (which is available
with your DP).
e) Transmission of Securities: Transmission of securities due to death, lunacy, bankruptcy,
insolvency or by any other lawful means other than transfer is also possible in the
depository system. In the case of transmission, the claimant will have to fill in a
transmission request form, (which is available with the DP) supported by valid
documents.
f) Freezing Account with DP: If at any time as a security measure one wishes that no
transaction should be effected in ones account, one may advise ones DP accordingly. DP
will ensure that account of such investor is totally frozen until further instructions from
him.
Benefits of Depository System:
1) This system will eliminate paper work as the book entry system does not need physical
movement of certificates for transfer process.
2) The risk of bad deliveries, fraud and misplaced, mutilated and lost share certificates will
not exist.
3) The electronic media will shorten settlement time and hence the investor can save time
and increase the velocity of security movement.
4) Investors will be able to change portfolio more frequently.
5) The capital market will be more transparent as the trading, clearing and settlement
mechanism have to be highly automated and interlinked with the depository among them.
6) The market will be highly automated and efficient due to the usage of computing and
telecommunication technology for the back office activities for all the capital market
players.
DEMATERIALISATION PROCESS:
NSDL
REGISTRAR
Depository
participant
INVESTOR
1. Appointing DP:
Any investor who intends to transact through depository system has to engage one depository
participant (DP). He can approach a DP of his choice and open an account with him just like one
opens an account with a bank. Investor gets an identification number called Client ID (just as one
gets ones bank account number) which serves as a reference point for all his transactions with
D.P.
Every investor before getting his holding dematerialised has to enter into an agreement with the
depository through a participant. This step is necessary whether investor already has securities or
securities are yet to be issued in a fresh issue. The investor contracts only with that depository
which accepts his security in depository mode since it is not necessary that all eligible securities
must be in depository mode and with all the depositories. The decision on whether or not to hold
securities within the depository mode and if in depository mode, with which depository or
participants, would be entirely with the investor.
2. Request for Demat:
After any agreement is entered for getting securities dematerialised and his account is opened,
the investor makes an application to depository participants in form called Dematerialisation
Request Form (DRF) to be provided by the DP and hands over his share certificates duly
cancelled by writing surrendered for dematerialisation to them for demat. The DP will accept
certificates registered only in investors name.
The request for dematerialisation with the depository participants is sent to the depository
through depository network with which DP is connected.
Simultaneously DP submits the securities certificates to the issuer company or its Registrar of
transfer.
3. Approach the Company or Registrar of Transfer
The depository will electronically intimate the issuer or its Registrar and transfer agent of the
dematerialisation request. The issuer or the Registrar and transfer
Agent has to verify the validity of the security certificates as well as the fact that the DRF has
been made by the person recorded as a member in its Register of Members. If the issuer or its
Registrar is satisfied, it dematerialises the scrip and updates its record.
4. Confirmation of Demat
The Registrar to transfer or the concerned company when satisfied with the case of demat has to
inform the depository of the completion of dematerialisation authorising an electronic credit for
that security in favour of the investor.
5. Crediting the Clients Account
DP credits investors account with the number of shares so dematerialised and thereafter investor
hold the securities in electronic form. If there is rejection of demat request then such credit is not
given. After crediting the account, the client is sending the necessary information in form of a
statement like we get bank statement after bank transactions.
Demat Account:
Demat account is a safe and convenient means of holding securities just like a bank account is
for funds. Today, practically 99.9% settlement (of shares) takes place on demat mode only. Thus,
it is advisable to have a Beneficiary Owner (BO) account to trade at the exchanges.
Benefits Of Demat Account:
A safe and convenient way of holding securities (equity and debt instruments both).
Transactions involving physical securities are costlier than those involving dematerialised
securities (just like the transactions through a bank teller are costlier than ATM
transactions). Therefore, charges applicable to an investor are lesser for each transaction.
Securities can be transferred at an instruction immediately.
Increased liquidity, as securities can be sold at any time during the trading hours
(between 9:55 AM to 3:30 PM on all working days), and payment can be received in a
separately.
Securities are transferred by the DP itself, so no need to correspond with the companies.
Shares arising out of bonus, split, consolidation, merger etc. are automatically credited
Documents to be attached
Getting started
1. Choose a DP
by the depository.
Note:
The agreement required to be signed by the investor details the rights and duties of the
Re materialisation process:
Rematerialisation is a process of converting electronic holdings of investor back into share
certificates in paper form. The process of rematerialisation is also carried out through DP and
the process has to be completed within a period of 30 days. Thus, once security is
dematerialised it is not necessary that investor is to continue in depository mode for all times
to come. He can switch over to remat whereby he gets back physical possession of security
scripts. The client of DP has to submit a request for remat. This request is forwarded for
necessary action to depository. The depository confirms the rematerialisation request to the
Registrar and Transfer Agents. The Registrar updates the accounts and prints the desired
certificate. The depository is informed by Registrar and certificate is sent to the investor. The
depository updates its records and communicates to DP to incorporate necessary changes in
the account of the client.
National Securities Depository Limited is the first depository to be set-up in India. It was
incorporated on December 12, 1995. The Industrial Development Bank of India (IDBI) - the
largest development bank in India, Unit Trust of India (UTI) - the largest Indian mutual fund and
the National Stock Exchange (NSE) - the largest stock exchange in India, sponsored the setting
up of NSDL and subscribed to the initial capital. NSDL commenced operations on November 8,
1996.
Ownership
NSDL is a public limited company incorporated under the Companies Act, 1956. NSDL had a
paidup equity capital of Rs. 105 crore. The paid up capital has been reduced to Rs. 80 crore since
NSDL has bought back its shares of the face value of Rs. 25 crore in the year 2000. However, its
net worth is above the Rs. 100 crore, as required by SEBI regulations.
The following organisations are shareholders of NSDL as on March 31, 2005.
1. Industrial Development Bank of India
2. Administrator of the Specified Undertaking of the Unit Trust of India - DRF
3. National Stock Exchange
4. State Bank of India
5. Oriental Bank of Commerce
6. Citibank N.A.
7. Standard Chartered Bank
8. HDFC Bank Limited
9. The Hongkong and Shanghai Banking Corporation Limited
10. Deutsche Bank A.G.
11. Dena Bank
12. Canara Bank
Management of NSDL:
NSDL is a public limited company managed by a professional Board of Directors. The day-today
operations are conducted by the Chairman & Managing Director (CMD). To assist the CMD in
his functions, the Board appoints an Executive Committee (EC) of not more than 15 members.
The eligibility criteria and period of nomination, etc. are governed by the Bye-Laws of NSDL in
this regard.
Bye-Laws of NSDL:
Bye-Laws of National Securities Depository Limited have been framed under powers conferred
under section 26 of the Depositories Act, 1996 and approved by Securities and Exchange Board
of India. The Bye-Laws contain fourteen chapters and pertain to the areas listed below:
1. Short title and commencement
2. Definitions
3. Board of Directors
4. Executive Committee
5. Business Rules
6. Participants
7. Safeguards to protect interest of clients and participants.
8. Securities
9. Accounts/transactions by book entry
10. Reconciliation, accounts and audit
11. Disciplinary action
12. Appeals
13. Conciliation
ArbitrationAmendments to NSDL Bye-Laws require the approval of the Board of Directors of
NSDL and SEBI.
Business Rules of NSDL
Amendments to NSDL Business Rules require the approval of NSDL Executive Committee
andfiling of the same with SEBI at least a day before the effective date for the amendments.
Functions:
Account holders (investors) open account with the DPs. The account details, entered in a
computer system maintained by Depository Participants called DPM, are electronically conveyed
to the central system of NSDL called DM. Companies who have agreed to offer demat facility to
their shareholders use a computer system called DPM (SHR) to connect to the NSDL central
system. DPM (SHR) may be installed by the company itself or through its R&T Agent. This
system is used to electronically receive demat requests, confirm such requests or to receive
beneficial owner data (Benpos) from the depository. Stock exchanges receive pay-in (receiving
securities against sales made by brokers) or to payout (giving securities to brokers against their
purchases) using a computer system connected to NSDL called DPM (CC).
All the computer systems installed by DPs (DPM-DP), companies (DPM-SHRs), and stock
exchanges (DPM-CC) are connected to NSDL central system (DM) through V-SAT (very small
aperture terminal) or leased lines. These are collectively called Business Partner Systems. Any
transaction conducted by any computer system in the NSDL depository system which is targetted
to reach any other computer system first gets recorded in DM and then will reach the target. No
two business partners' systems can communicate to each other without passing through the DM.
Maintenance of Accounts at the Central System:
The NSDL central system known as DM maintains accounts of all account holders in the
depository system. All the transactions entered at any point in the computer system connected to
it are first effected in the central system and subsequently at these computers. Thus, the central
system of NSDL has the records of all details of every transaction conducted in the depository
system.
Distributed Database:
Each of the computer systems connected to NSDL system has its own database relating to its
clients. This helps in giving prompt and accurate service to the clients. However each of the
databases is reconciled with the data at the central system everyday in order to ensure that the
data in the distributed database tallies with the central database.
Common Software:
NSDL develops software required by depository participants, companies, R&T Agents and
clearing corporations for conducting depository operations. Thus, the computer systems used by
all the entities will have common software given by NSDL. However, depending on the business
potential, branch networks and any other specific features, DPs may develop software of their
own for co-ordination, communication and control and provide service to their clients. Such
exclusive software is called "back office software". DPM system given by NSDL gives "export
and import" facility to take out the transaction details to be used by back office software and to
feed in transaction details generated from the back office software.
Connectivity:
The computer system used by DPs, companies, R&T Agents and stock exchanges may be
connected to NSDL central system through V-SAT network or leased line network. NSDL uses
NSE's V-SAT network for the connectivity purposes. Thus, V-SATs used by NSE brokers can
connect to NSDL if the software supplied by NSDL is used. V-SAT uses satellites for
communication purposes. Some business partners may connect using leased lines provided by
MTNL/ BSNL. V-SAT or leased line connections are called primary connectivity. If primary
connectivity fails for any reason, BPs must have the ability to connect through other means. Such
other means are PSTN lines, ISDN lines, POP lines(normal telephone lines) through which they
can dial in to the NSDL system and conduct their transactions.
NSDL Facts & Figures:
As on January 31, 2016
Number of certificates eliminated (Approx.)
Number of companies in which more than 75% shares are
2092 crore
6267
dematted
Average number of accounts opened per day since November 1996 3590
Presence of demat account holders in the country
89% of all pin codes in the country
The balances in the investors account recorded and maintained with CDSL can be obtained
through the DP. The DP is required to provide the investor, at regular intervals, a statement of
account which gives the details of the securities holdings and transactions. The depository
system has effectively eliminated paper-based certificates which were prone to be fake, forged,
counterfeit resulting in bad deliveries. CDSL offers an efficient and instantaneous transfer of
securities.
CDSL was promoted by Bombay Stock Exchange Limited (BSE) jointly with leading banks such
as State Bank of India, Bank of India, Bank of Baroda, HDFC Bank, Standard Chartered Bank,
Union Bank of India and Centurion Bank.
CDSL was set up with the objective of providing convenient, dependable and secure depository
services at affordable cost to all market participants. Some of the important milestones of CDSL
system are:
CDSL received the certificate of commencement of business from SEBI in February, 1999
Honourable Union Finance Minister, Shri Yashwant Sinha flagged off the operations of
Shareholders of CDSL:
CDSL was promoted by Bombay Stock Exchange Limited (BSE) in association with Bank of
India, Bank of Baroda, State Bank of India and HDFC Bank. BSE has been involved with this
venture right from the inception and has contributed overwhelmingly to the fruition of the
project. The initial capital of the company is Rs.104.50 crores. The list of shareholders with
effect from 11th December, 2008 is as under.
A professional Board of Directors with vast and varied experience in capital markets and banking
is at the helm of affairs at CDSL.
Directors
Shri R. M. MallaDirector
Former Chairman & Managing Director- IDBI Bank Ltd
Shri A. KrishnakumarDirector
Former Managing Director, International Banking Group, State Bank of India
Shri V. BalasubramaniamDirector
Chief Business Officer
BSE Limited
Shri Ramkumar K.Senior Vice President New Projects & Insurance Repository matters
Shri Sunil AlvaresSenior Vice President Business Development & Admission Cell
Details of Charges
Account Opening Charges
Account Maintenance Charges
CDSL
NIL
NIL for individuals
Rs.500/- p.a. to Corporates
Transaction Charges
5
6
7
Member Accounts
Custody Charges
Demat Charges
Remat Charges
Pledge/Hypothecation Charges
Rs.6/-
**
For Main DPs: Rs.5,000/- per month or the amount of the actual bill for a given month
whichever is higher.
For DP-Branches: Rs.5,000/- per month or the amount of the actual bill for a given month
whichever is higher.
Fees for Clearing Members
CDSL collects only Rs. 500/ - per month from its DPs for a CM except for CM Investors
Securities Account.
The following tariff structure will be effective from Thursday , April 01, 2010.
Rate per
(@Rs.6/-per transaction)
Debit Transaction
(in Rs.)
(in Rs.)
4.25
4.50
5.00
5.50
No. of respondent
Yes
94%
No
06%
6%
yes
no
94%
Inference: From the sample size of 100, 90 respondents know about depository system .
Ans:
no. of respondent
Yes
70%
No
30%
30%
Yes
No
70%
Inference: From the sample size of 100, 70 respondents having their depository account.
Ans :
Options
No. of respondent
percentage
Yes
30
50%
No
22
31%
Up to some extent
18
19%
No. of respondent
Yes
18
30
No
Up to some extent
22
Inference: out of 70 respondents, 50% respondents are satisfied,31% are not satisfied and
19% respondents are satisfied upto some extent with the fees structure of Depository Participant
No. of respondent
percentage
Distance convenience
17
24
Service level
22
31
Charges
20
28
Reputation
11
17
No. of respondent
11
17
Distance convenience
Service level
Charges
Reputation
20
22
Inference: There is a close response from the respondents,31% respondents are choosing their
DP from the services provided by them and 28% are choosing by the charges.
No. of respondent(%age)
Individual
40%
Company
60%
No. of respondent(%age)
individual
40%
company
60%
Inference: It shows that 60% respondent having account with company while 40% respondent
having individual account .
Ques.6: Who can make a request for the demat of the security?
Ans :
Types
No. of respondent
%age
Company
10
29
43
Depository
15
20
Depository participant
19
27
No.of respondent
Company
Registered holder of
the company
19
Depository
29
15
Inference:
Depository participant
NO. OF RESPONDENT
30%
YES
NO
70%
NO. OF RESPONDENT
30%
YES
NO
70%
Inference: It shows that 30% respondent having grievance to parties for NSDL while 70% having
not.
Ques.8: How much time period is given to the parties to resolve their grievances for NSDL?
Ans:
DAYS
NO. OF RESPONDENT
PERCENTAGE
30 DAYS
15
21%
21 DAYS
34
48%
45 DAYS
15
22%
25 DAYS
9%
NO. OF RESPONDENT
6
15
15
30 DAYS
21 DAYS
45 DAYS
25 DAYS
34
Inference: 48% respondents replied for the ii) option which is right.
Ques.9: In case of partnership firm account will be open in the name of:
ANS:
OPTIONS
MAXIMUM
PARTNER
NO. OF RESPONDENT
HOLDING 37
%AGE
39
36
37
FIRM
27
24
Chart Title
firm; 24%
maximum holding partner; 39%
Inference: The respondents are also not too much aware about this question; the percentage of
any authorized partner is less than the percentage of maximum holding partner
Sharekhan
India bulls
Reliance
ICICI direct.com
Others
Sharekhan
07
India Bulls
11
Reliance
14
ICICI direct.com
08
Others
10
Chart Title
Sharekhan
10
India Bulls
Reliance
11
14
ICICI direct.com
others
QUES.11: If your selected trading company increases their annual charges will you go with it?
Ans:
YES
02
NO
29
IF CHARGES ARE
REASONABLE
19
QUES.12: According to you which one is the most important factor for trading company to
enhance loyalty and customer?
A)
B)
C)
D)
17
08
No hidden charges
18
Other factors
07
No. of Investors
Equity
46%
Debt
17%
Balanced
37%
No. of Investors
Equity
Debt
37%
46%
Balanced
17%
From the above graph 46% preferred Equity Portfolio, 37% preferred Balance and 17% preferred
debt portfolio.
FINDINGS
1.
2.
3.
4.
5.
6.
company.
7. It is found that many customers dont want hidden charges for trading company.
8. It is found that many investors preferred the equity portfolio.
CONCLUSION
To conclude, it can be said that the research findings clearly reveal the goodwill and reputation of
depository system among the customers. But there is a need to strengthen this depository system
by spreading awareness about the services offered by NSDL, CSDL and its trading companies
through advertisement and by expanding the more branches of this system all over the country
and also by tapping the potential customers through innovative means.