A

PROJECT REPORT
ON

DEMAT ACCOUNT
AT
ANGEL BROKING
Submitted
By

Mr. MIR ASHRAF ALI

ROLL NO: 2281-14-672-077
PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR
THE AWARD OF THE DEGREE OF

MASTER OF BUSSINESS ADMINISTRATION

DEPARTMENT OF BUSINESS ADMINISTRATION

ARADHANA SCHOOL OF BUSINESS
MANAGEMENT
(Affiliated to OSMANIA University)
2014 -2016

DECLARATION

I hereby declare that this project report titled DEMAT ACCOUNT at ANGEL
BROKING submitted by me to the department of business management, O.U,
Hyderabad, is a bonafide work under taken by me and it is not submitted to any other
university or institution for the award of any degree diploma/certificate or published any
time before.

Name and Address of the Student

Mr. Mir Ashraf Ali
Roll No: 2281-14-672-077

Signature of the student

ACKNOWLEDGEMENT
I take this opportunity to extend my profound thanks and deep sense of gratitude
to the ANGEL BROKING for giving me an opportunity to undertake this project work
in their esteemed organization.
My sincere thanks to Principal, DR.M.PRAKASH and my project guide
MS. ALGI PHEBE NISSI, for the kind encouragement and constant support extended in
completion of this project work.
I extend my profuse to my parents and friends for encouraging and supporting in
every part of my career.

ABSTRACT
In India demat account started with the setting up of UTI in 1964. Public Sector
Banks and Financial Institutions began to establish Demat Account in 1987. The Private
Sector and Foreign Institutions were allowed to set up Demat Account in 1993. Today,
there are over 29 Demat Account and over 300 Schemes with total assets of
approximately Rs.10,000 Crores. This fast growing industry is regulated by the SEBI.
The Demat Account in India started in 1963 with the formation of Unit Trust of India, at
the initiative of the Government of India and Reserve Bank .The objective then is to
attract the small investors and introduce them to market investments. Since then, the
history of Demat Account in India can be broadly divided into four distinct phases.
To understand the performance and benefits of .To conduct a Market study &
find the fund preference and awareness of full schemes of AMC & dividend option
opted. This Study has been conducted within specific and limited time period. The
Project has been conducted in limited geographical area in Hyderabad. In collection of
data from the investors, personal bias may be present. A Demat Accounts a trust that
pools the savings of a number of investors who share a common financial Goal. The
money thus collected is invested by the fund manager in different types of securities
depending upon the objective of the scheme. These could range from shares to
debentures to money market instruments.
There is comprehensive knowledge and understanding of Demat Account
amongst all individuals instrumental in selling the Demat Accounts Schemes to investors
including employees of intermediaries, individual agents and financial planners. The
Demat Account has to now take the more difficult but long-term sustainable route of
gathering assets from individual investors by providing them value added, financial
planning services and ensuring that Demat Account .

TABLE OF CONTENTS
CHAPTER NO.
I

CHAPTER NAME

PAGE NO.
1-11

INTRODUCTION
LITERATURE OF REVIEW

12-42

Theoretical Framework
INDUSTRY PROFILE

43-66

II

III

AND
COMPANY PROFILE
DATA ANALYSIS AND

67-87

INTERPRETATIONS
FINDINGS , SUGGESTIONS AND

88-91

IV
V

VI

CONCLUSIONS
BIBLOGRAPHY

92

QUESTIONNAIRE

94

CHAPTER I
INTRODUCTION

onwards, T+2 days settlement cycle is being followed. Equity Derivatives

Trading: In order to assist market

OBJECTIVE OF THE STUDY

The main objective of the study is to know about the potential of the

market regarding peoples dealing in share market.

To know the role of DEMAT ACCOUNT.
To know the procedure of opening DEMAT ACCOUNT.
The objective is to know that how many people in the city are aware
of the Angel broking.
To know where people have already opened their demat a/c and on
what basis.

Need for the Study

Create awareness among investors about the D-mat account.
Understand the total investments through d-mat account
Give basic knowledge to investors regarding risk and return
companies.
Also understand the D-mat and different way of trading
Scope of the Study
D-mat account Review can take review from market through this
project. Management people can get overall idea about the risk
management regarding working of Investing. They also understand
what information provides to investor for avoiding the risk.

RESEARCH METHODOLOGY
3

Research methodology refers to the search for Knowledge. It is a way to

systematically solve the research problem. In it we study the various steps
that are generally adopted by the researcher in studying his research problem
along with logic behind them.
Research Methodology concerning a research problem or study
provide answers to various questions like; why a research study has been
undertaken, how the research problem has been defined, what data have been
collected and what particular method has been adopted to collect the data,
what technique has been used for analyzing the data and a host of similar
other questions
Though there are more than one alternative approaches available to the
researcher, but this not enough to make the task of selecting the suitable
research design simpler. Like the so-called suitable research design may
require some in between approach. The objective of study being the main
determinant of the validity and reliability of the method adopted the degree
of usefulness of the scientific method. Since there are many aspects of
research methodology, in line of action has to be chosen from variety of
alternatives, so that individual choice of suitable method is further
complicated and make a viable whole. The choice of suitable method is
further complicated by the possibility of many permutations and
combinations. The fair selection can be arrived at through the objective
assessment and of course comparison of various alternatives. The finally
selected line of action must ensure that this is indeed best one as against
those rejected by the researcher. in addition, the circumstances and problems
also having a bearing in the choice. To count a fem, limitations could be
4

imposed in the sense of funds available, time and urgency in conducting the
research. So the final choice must be based on assessment of its advantage
and disadvantages when weighted against affecting factors.
Research methodology can be said to have four major components namelyResearch design, Sample design, Data collection procedure and methods of
analyzing and reporting the findings.

Research Design
The research problem having been formulated in clear cut terms, the
researcher will be required to prepare a research design i.e., he will have to
state the conceptual structure with in which research would be conducted.
The preparation of such a design facilitates research to be as efficient as
possible yielding maximal information. But how all there can be achieved
depends mainly on the research purpose. Research purpose may be grouped
into four categories.
(1) Exploration
(2)Description
(3) Diagnoses and
(4) Experimentation.
Exploratory research studies are those whose main purpose is that of
formulating a problem for more precise investigation or of developing the
working hypotheses from on operational point of view.
Descriptive research studies are those studies which are concerned with
describing the characteristics of a particular individual, or of a group
Diagnostic research studies determine the frequency with which something
occurs.
Experimental research studies are those where the researcher tests the
hypothesis of casual relationship between the variables.

Research design of this particular research study of dematerialization of

shares is primarily based on descriptive and diagnostic research design. As
descriptive and diagnostic research design describes the characteristics and
determines the frequency with which something occurs respectively,
similarly this research determines the characteristics of the individuals who
deal in share and also determine the frequency of dealing on the basis of
their characteristics.

Sample Design
All the items under consideration in any field of inquiry constitute a
Universe or Population. A complete enumeration of all the items in the
population is known as a census inquiry. This type of inquiry involves a
great ideal of time, money and energy. Hence quite often a few items so
selected constitute what is technically called a sample.
The researcher must decide the way of selecting a sample or what is
popularly known as sample design. A sample design is a definite plan
determined before any data are actually collected for obtaining a sample
from a given population. Samples can be either probability or nonprobability samples. With probability samples each element has a known
probability of being included in the sample but non-probability samples are
those based on simples do not allow the researcher to determine this
probability.
Probability samples are those based on simple random sampling, systematic
sampling , etc where as non probability samples are those based on
convenient sampling, judgment sampling etc.

DATA COLLECTION TECHNIQUES

The required data is collected both from primary as well as secondary
sources.
Primary Sources: The primary data was collected through structured
unbiased questionnaire and personal interviews of investors. For this purpose
questionnaire included were both open ended & close ended & mulplechoice questions.
Secondary Sources: Secondary data is the data, which is collected
and complied for different purposes, which are used in research for this
study. The secondary data includes material collected from:Magazines & Bulletined- Brochure of SHIRAM INSIGHT Stock Broking
Limited investment solutions.
Internetwww.sebi.gov.in
www.nseindia.com
SIZE OF SAMPLE
The overall sample involved in the study consisted of 50 individuals.
Keeping in view the limited resources of time, a limited sample of
individuals. It was fixed before hand and every effort was made to cover the
given number of individuals with available time for the collection of data for
this project. The data was collected with the help of the questionnaire herself
by the researcher.

Method used for analysis of study

9

The methodology used for this purpose is Survey and Questionnaire Method.
It is a time consuming and expensive method and requires more
administrative planning and supervision. It is also subjective to interviewer
bias or distortion.

Analysis of Data
After the data have been collected, the researcher turns to the task of
analyzing them. The analysis of data requires a number of closely related
operations such as establishment of categories, the application of these
categories to raw data through coding, tabulation and then drawing statistical
inferences. The unwisely data should necessary be condensed into a few
manageable groups and tables for further analysis. Thus researcher should
classify the raw data into some purposeful and usable categories. In the
process of analysis, relationships or differences supporting or conflicting
with original or new hypotheses should be subjected to tests of significance
to determine with what validity data can be said to indicate any conclusion

Interpretation
The interpretation is done on the basis of the analyzed data and also some
recommendations are given to fill the loopholes of the actual scenario.

10

LIMITATIONS OF THE RESEARCH STUDY

Due to the lack of time, it was not possible for the researcher to
approach all the people.
The respondents were asked to indicate their true responses to the
questions being asked, but rather than giving the response, they might
have been in a form of expert comments which might have based the
result of the study.
The results of the study may not be universally applicable due to
regional constraints.
Money was also considered as a major constraint during the research
work.
Personal biasness may be included in the research work.

11

CHAPTER II
REVIEW OF LITERATURE

12

DEMAT ACCOUNT
How to open a d-mat account in Shiram Insight securities
A/C opening charge- 450/Name of the software used- Odin
Software installation charge- 900/Maintenance charge- 250/- from 3rd year.
Exposure- 20 times for intraday.
Name of the bank with the help of which customer get the facility of net bankingAXIS bank , ICICI bank, HDFC bank.
Services provided- Equity, Commodities, Insurance, Wealth Management Services,
Insurance, Investment Banking.
DP sell charge- 8/Brokerage- intraday-.03% & Delivery-.3%
Transaction Report- Through mail(Free of Cost)
Prepaid Scheme- Not available.
Types of trading accounts provided- De-Mat a/c, Trading a/c, Margin a/c.
Network- 1837 locations more than 498 cities.
Margin money-50000/- for R-ALLY & R-ALLY Lite.
10000/-for R-ALLY Pro.
Secrecy- Password provided to the customer has to change every after 15 days.

13

INTRODUCTION
Over a period, the Indian securities market has undergone remarkable
changes and grown exponentially, particularly in terms of resource
mobilization, intermediaries, the number of listed stocks, market
capitalization, and turnover and investor population.
The following paragraphs list the principal reform measures undertaken
since 1992.Creation of Market Regulator: Securities and Exchange Board of
India (SEBI), the Securities market regulator in India, was established under
SEBI Act 1992, with the main objective and responsibility for (i) protecting
the interests of investors in Regulating the securities market. Screen Based
Trading: Prior to setting up of NSE, the trading on stock exchanges in India
was based on an open outcry system.
The system was inefficient and time securities, (ii) promoting the
development of the securities market, and (iii) consuming because of its
inability to provide immediate matching or recording of trades. In order to
provide efficiency, liquidity and transparency, NSE introduced a nation-wide
on-line fully automated screen based trading system (SBTS) on the CM
segment on November 3, 1994. Reduction of Trading Cycle: Earlier, the
trading cycle for stocks, based on type of securities, used to vary between 14
days to 30 days and the settlement involved another fortnight. The
Exchanges, however, continued to have different weekly trading cycles,
which enabled shifting of positions from one Exchange to another. It was
made mandatory for all Exchanges to follow a uniform weekly trading cycle
in respect of scrips not under rolling settlement. In December 2001, all scrips
were moved to rolling settlement and the settlement period was reduced
14

progressively from T+5 to T+3 days. From April 2003 onwards, T+2 days
settlement cycle is being followed. Equity Derivatives Trading: In order to
assist market participants in managing risks better through hedging,
speculation and arbitrage, SC(R) A was amended in 1995 to lift the ban on
options in securities. Trading in derivatives, however, took off 13in 2000
with index futures after suitable legal and regulatory framework was put in
place. The market presently offers index futures, index options, single stock
futures and single stock options.
Demutualisation: Historically, stock exchanges were owned, controlled and
managed by the brokers. In case of disputes, integrity of the stock exchange
suffered. NSE, however, was set up with a pure demutualised governance
structure, having ownership, management and trading with three different
sets of people. Currently, all the stock exchanges in India have a
demutualised set up. Dematerialisation: As discussed before, the old
settlement system was inefficient due to (i) the time lag for settlement and
(ii) the physical movement of paper-based securities. To obviate these
problems, the Depositories Act, 1996 was passed to provide for the
establishment of depositories in securities with the objective of ensuring free
transferability of securities with speed and accuracy. There are two
depositories in India, viz. NSDL and CDSL.
They have been set up to provide instantaneous electronic transfer of
securities. Demat (Dematerialised) settlement has eliminated the bad
deliveries and associated problems. To prevent physical certificates from
sneaking into circulation, it has been made mandatory for all newly issued
securities to be compulsorily traded in dematerialised form. Now, the public
listed companies making IPO of any security for Rs.10 crore or more have to
15

make the IPO only in dematerialised form. Clearing Corporation: The

anonymous electronic order book ushered in by the NSE did not permit
members to assess credit risk of the counter-party and thus
necessitated some innovation in this area. To address this concern, NSE had
set up the first clearing corporation, viz. National Securities Clearing
Corporation Ltd.
(NSCCL), which commenced its operations in April 1996.
Investor Protection: In order to protect the interest of the investors and
promote awareness, the Central Government (Ministry of Corporate Affairs
1) established the Investor Education and Protection Fund (IEPF) in October
2001. With the similar objectives, the Exchanges and SEBI also maintain
investor protection funds to take care of investor claims. SEBI and the stock
exchanges have also set up investor grievance / service cells for redress of
investor grievance. All these agencies and investor associations also organise
investor education and awareness programmes.
Globalisation: Indian companies have been permitted to raise resources
overseas through issue of ADRs, GDRs, FCCBs and ECBs. Further, FIIs
have been permitted to invest in all types of securities, including government
securities and tap the domestic market. The investments by FIIs enjoy full
capital account convertibility. They can invest in a company under portfolio
investment route upto 24% of the paid up capital of the company. This can
be increased up to the sectoral cap/statutory ceiling, as applicable to the
Indian companies concerned, by passing a resolution of its Board of
Directors followed by a special resolution to that effect by its general body.
The Indian stock exchanges have been permitted to set up trading terminals
abroad. The trading platform of Indian exchanges is now accessible through
16

the Internet from anywhere in the world. RBI permitted two-way fungibility
for ADRs / GDRs, which means that the investors (foreign institutional or
domestic) who hold ADRs / GDRs can cancel them with the depository and
sell the underlying shares in the market. 1 Earlier known as Department of
Company Affairs.
Launch of India VIX 2: Volatility index is a measure of markets expectation
of volatility over the near term. It measures the amount by which an
underlying Index is expected to fluctuate in the near term, based on the order
book of the underlying index options. Indias first volatility index, India VIX
(based on the Nifty 50 Index Option prices) was launched by NSE in April
2014.
Direct Market Access: In April 2014, SEBI allowed the direct market access
(DMA) facility to the institutional investors. DMA allows brokers to offer
their respective clients, direct access to the Exchange trading system through
the brokers infrastructure without manual intervention by the broker.
Launch of Securities Lending & Borrowing Scheme: In April 2014, the
Securities Lending & Borrowing mechanism was allowed. It allows market
participants to take short positions effectively with less cost.
Launch of Currency Futures: On August 29, 2014, NSE launched trading in
currency future contracts in the USD-INR pair for the first time in India.
Trading in other currency pairs like Euro INR, Pound Sterling INR and
Japanese Yen was further made available for trading in March 2010.
ASBA: Application Supported by Blocked Amount (ASBA) is a major
primary market reform. It enables investors to apply for IPOs / FPOs and
rights issues without making a payment. Instead, the amount is blocked in
17

investors own account and only an amount proportionate to the shares

allotted goes out when allotment is finalized. Launch of Interest Rate
Futures: On August 31, 2015, futures on interest rate was launched on the
National Stock Exchange.
Issue of Capital and Disclosure Requirements (ICDR) Regulations 2015: In
August 2015, the SEBI issued Issue of Capital and Disclosure Requirements
(ICDR) Regulations 2015, replacing the Disclosure and Investor Protection
(DIP) Guidelines 2000. ICDR Regulations 2015 would govern all disclosure
norms regarding issue of securities.
The trading on stock exchanges in India used to take place through open
outcry without use of information technology for immediate matching or
recording of trades. This was time consuming and inefficient. This imposed
limits on trading volumes and efficiency. In order to provide efficiency,
liquidity and transparency, NSE introduced a nation-wide on-line fully
automated screen based trading system where a member can punch into the
computer quantities of securities and the prices at which he likes to transact
and the transaction is executed as soon as it finds a matching sale or buy
order from a counter party. Screen based electronic system electronically
matches orders on a strict price/time priority and hence cuts down on time,
cost and risk of error, as well as on fraud resulting in improved operational
efficiency.
It allows faster incorporation of price sensitive information into prevailing
prices, thus increasing the informational efficiency of markets. It enables
market participants, irrespective of their geographical locations, to trade with
one another simultaneous, improving the depth and liquidity of the market. It
18

provides full anonymity by accepting orders, big or small, from members

without revealing their identity, thus providing equal access to everybody. It
also provides a perfect audit trial, which helps to resolve disputes by logging
in the trade execution process entirety. The sucked liquidity from other
exchanges and in the very first year of its operation, NSE became the leading
stock exchange in the country, impacting the fortunes of other exchanges and
forcing them to adopt SBTS also. Today India can boast that almost 100%
trading take place through electronic order matching.

Now dematerialisation of shares is introduced a new concept which

converts paper based physical trading into electronic trading. It is a safe and
convenient way to hold securities. Screen based trading system helps in
faster transfer of securities and no stamp duty is required on transfer of
securities. The trading system operates on a strict price time priority. All
orders received on the system are sorted with the best priced order getting
the first priority for matching i.e. the best buy order match with the best sell
order. Orders are matched automatically by the computer keeping the system
transparent, objective and fair. The trading system provides tremendous
flexibility to the users in terms of kinds of orders that can be placed on the
system. The trading system also provides market information online.
In order to promote dematerialization of securities, NSE joined hands with
leading financial institutions to establish the national securities depository
Ltd. (NSDL), the first depository in the country, with the objective of
enhancing the efficiency in settlement systems as also to reduce the menace
of fake/forged and stolen securities. This has ushered in an era of
dematerialised trading and settlement.

19

WHAT IS DEMAT
In India, a demat account, the abbreviation for dematerialised account, is a
type of banking account which dematerializes paper-based physical stock
shares. Conversion of Securities from Physical (Paper) Mode into Electronic
Mode is Called Dematerialization. The Client opens Demat Account with
any DP. Upon Demat, the Certificates are destroyed and credit entry of
exactly equal number of Securities is created in Depository in Electronic
mode. The B.O. account of holder is credited and the securities loose their
identities. 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 market regulator, 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 2011.
Dematerialisation is the process by which physical certificates of an investor
are converted to an equivalent number of securities in electronic form and
credited in the investor's account with its DP. In order to dematerialize
certificates; an investor will have to first open an account with a DP and then
request for the dematerialisation of certificates by filling up a
dematerialisation request form [DRF], which is available with the DP and
submitting the same along with the physical certificates. The investor has to
ensure that before the certificates are handed over to the DP for demat, they
are defaced by marking "Surrendered for Dematerialisation" on the face of
the certificates.
20

ACCOUNT OPENING
To avail the services of a depository an investor is required to
open an account with a depository participant of any
depository.

PROCEDURE FOR OPENING AN ACCOUNT

A demat account are opened on the same lines as that of a Bank Account.
Prescribed Account opening forms are available with the DP, needs to be
filled in. Standard Agreements are to be signed by the Client and the DP,
which details the rights and obligations of both parties
The DP officials will make available the relevant account opening
form (depending on whether the client is a retail investor or corporate
client/clearing member) and specify the list of documents regarding
references that should be submitted along with the form. It will also
give a copy of the relevant agreement to be entered with the client, in
duplicate.
The client will submit the duly filled in account opening form and
client has to visit personally for opening the account in DP. The DP
officials have to do in person verification and affix the IN PERSON
VERIFICATION stamp on the account opening form. It should also
furnish such documents regarding references, as specified by the DP,
along with the account opening form. After executing the agreement
the client has to forward it to the DP.

21

 The DP officials will verify that the account opening form is duly
filled in. It will also verify the enclosed documents, if any. Incomplete
forms will be forwarded to the client for rectification.
For Corporate Clients, the DP officials will verify if the board
resolution for the authorized signatories is enclosed.
In case the documents are not proper, the DP officials will reject the
form and intimate the client of the same, stating the reasons for doing
so.
If the form is in order; the DP officials will accept the same and affix
the stamp verified with original on each and every proof after seeing
the original proofs.
After completion of all documentation, the DP officials will verify the
pan from income tax website. And affix the stamp PAN VERIFIED
with date and sign on the stamp.
The DP officials will enter the client details as mentioned in the
account opening form in the DPM (software provided by NSDL &
CDSL to the Participant) screen provided for the purpose. In case of
NSDL A/c opening the SR. Assist will capture all the details in the
DPM and record the clients signature (on the form) as specimen for
authorizations in the future.
After entering client details in the system, a client account number
will be generated by the DPM. The DP officials will enter this in the
22

account opening form. After that the officers will verify the details in
the DPM captured by the SR. Assist. and activate the account.
The DP officials are not allowed to give the demat a/c no to the clients
until the a/c is activate, this is applicable for both NSDL & CDSL.
When the demat a/c is activated the DP officials have to send the
client master and the copy of agreement between DP and client at the
clients address
The account holder is called 'beneficial owner' in a depository system and
the account is known as 'beneficiary account'.
Features of Beneficiary Account
No minimum balance is required to be retained in a beneficiary
account.
An investor can close a beneficiary account with one DP and open an
account with another DP.
To dematerialise existing physical holdings, the beneficiary account
must be opened in the same ownership pattern in which the securities
are held in the physical form e.g.,if one certificate is in individual
name and another certificate is jointly held by X & Y, two different
accounts should be opened. However, in case of joint holders,
securities can be dematerialised in the same account even though
share certificates are in different sequence of names e.g., shares held
in joint names of X & Y can also be dematerialised in an account
opened in the names of Y & X as well by submitting an additional
form (Transposition Form) alongwith Demat Request Form
23

DOCUMENTS SHOULD BE REQUIRED FOR DEMAT

ACCOUNT
Proof of Identity (POI):
Passport
Voter ID card
Driving license
PAN card with photograph
Identity card with applicants photograph issued by
1. Central or state government and its department
2. Statutory/regulatory authorities
3. Public sector undertakings
4. Scheduled commercial banks
5. Public financial institutions
6. College affiliated to universities
Proof of Address (POA):
Ration card
Passport
Voter ID card
Driving License
Bank passbook
Verified copies of :
1. Electricity bills (not more than 2 months old)
24

2. Residence landline telephone bill (not more than 2 months old)

3. Leave & license agreement/agreement to sell (duly attested)
4. Self declaration by supreme court/high court judges, giving the new
address in respect of their own accounts.
Identity card with applicants photograph issued by
1. Central or state government and its department
2. Statutory/regulatory authorities
3. Public sector undertakings
4. Scheduled commercial banks
5. Public financial institutions
6. College affiliated to universities.
Passport-size photograph
Copy of PAN card along with original PAN card for verification
Bank details:
Copy of cancelled cheque with printed name from the bank.
Copy of bank passbook with name and address and copy of cancelled
cheque.
Bank statement with name and address (duly authorized by the bank,
if statement is on plain paper) not more than 4 months old and copy of
cancelled cheque of MICR & bank detail verification.
In case of minor
Date of birth certificate duly notarized

25

 Proof of address and identity documents of the guardian both minor

and guardians photograph and guardian to sign across both
photographs
PAN card of minor as well guardian is mandatory
In case of NRI
Foreign address and RBI approval date attested copy of RBI approval
NRO-Indian address along with proofs
Bank account details
In case of joint holdings
In case of joint holdings, POI and POA documents along with PAN card
must be submitted in respect of all account holders. Original documents must
be taken to the DP for verification.
The DP will also provide a copy of the DP-Client agreement.
Account opening form require the applicants to give the following details:
(a) Name(s) of account holder(s) -The investor should ensure that the
name is identical to that which appears on the certificate(s) to be
dematerialised. In case of joint holdings, account may be opened in
any one combination, irrespective of the sequence in which names are
appearing on share certificates. Investors are advised to open their
account in their fully expanded name, i.e., to spell to the first name as
well as the middle name. This would obviate any doubts about the
veracity of the information.

(b) Mailing and communication address(es) - The veracity of the

applicant's address is determined through the documents submitted for
26

verification like ration card, passport, voter ID, PAN card, driving
license, bank passbook, etc. For NRI accounts, proof is required for
both addresses - that of the account holder as well as the constituted
attorney. For corporate accounts, a copy of Memorandum of
Association, Articles of Association, Board resolution permitting
opening of account, the registered address of the company have to be
furnished.
(c) Details of guardian in case account holder is a minor -Only a
guardian can open a depository account for a minor. The guardian is
required to sign the application form, and details of his name and
address need to be given in addition to the details of the minor.
(d) Foreign Address and RBI approval details for NRI, FII or
OCB accounts -For foreign-based applicants like NRIs, Flls, OCBs,
etc., the applicant must furnish original or attested copies of the power
of attorney and the approval letter from RBI permitting them to invest,
as the case may be. If the account holder is an FII or an OCB, SEBI
registration details along with attested copy of registration certificate
issued by SEBI and authorisation letter is required.

(e) Details of bank account -Details of bank account of the account

holder, including the nine digit code number of the bank and branch
appearing on the MICR cheques issued by the bank have to be filled in
the application form. Companies use this information for printing
them on dividend/interest warrants etc.

27

(f) Nomination declaration - A beneficial owner can make a

nomination of his account in favour of any person by filing the
nomination form with his DP. Such nomination is considered to be
conclusive evidence of the account holder'(s) disposition in respect of
all the securities in the account for which the nomination is made.

(g) Standing Instruction - a facility of standing instruction is

provided to the investors for receiving securities to the credit of their
accounts without giving a separate receipt instruction.
The demat account cannot be operated on "either or survivor" basis like
the bank account. In case of the joint account for the beneficial owners, all
the joint holders have to sign the account opening form.
The investor will submit to his DP the duly filled in account opening form
& DP-client agreement along with the documents.
The DP will verify whether the account opening form has been duly filled
in or not. He will also verify the submitted documents. For corporate
investors, the DP will also verify whether the board resolution for the
authorized signatories has been enclosed. The DP will ensure that client's
signature is recorded on the form which will serve as specimen for
authorizations in future.
If the application form and documents are in order, then the DP will
accept them and give an acknowledgement slip duly signed and stamped to

28

the client. The DP will execute the agreement and give a copy of it to the
client.
After completion of all documentation, the DP will enter the client details
as mentioned in the account opening form in the DPM (software provided by
NSDL to the DP) screen provided for the purpose. After entering client
details in the system, a client account number will be generated by the DPM.
The DP will enter this in the account opening form.
On successful opening of the account, the DP will give:
Client Id - an eight digit number to be used along with DP Id for any
future transactions.
Delivery Instruction slip book.
A copy of the report listing the client details captured in the DPM
database to the client. The report will be generated by the DPM.

PREREQUISTIES FOR DEMATERIALISATION REQUEST

1. The registered holder of the securities should make the request.
2. Securities to be dematerialised must be recognized by NSDL/CDSL as
eligible. In other words, only those securities whose ISIN has been activated
by NSDL/CDSL, can be dematerialised.
3. The company/issuer should have established connectivity with
NSDL/CDSL. Only after such connectivity is established that the securities

29

of

that

company/issuer

are

recognized

to

be

"available

for

dematerialization".
4. The holder of securities should have a beneficiary account in the same
name as it appears on the security certificates to be dematerialised.
5. The request should be made in the prescribed dematerialisation request
form.

REASONS FOR DEMATERIALISATION REQUEST

REJECTION

1. The quantity of shares mentioned in the DRF is more

than the actual certificates sent.
2. The quantity of shares mentioned in the DRF is less than the actual
certificates sent.
3. The certificates sent are fake.
4. The certificates sent are reported Stolen.
5. Original certificates present are those for which the duplicates have
already been issued.
6. Endorsements on the certificates are forged.
7. Securities stand on a different name than those mentioned in the DRF.
8. The details mentioned on the certificates do not match with the details
on the DRF, or the order of the holders name on the DRF is different
from the names given on the certificates. The scrutiny by the DP is
incomplete.
9. The securities attached / DRF does not pertain to the R&T Agent to
whom the DRF is sent.
30

10.

Electronic request received but physical certificates are not

received with in 15 days.

11.
Specimen Signature on the DRF differs from the signatures
recorded with the Registrar / Transfer Agents.
12.
The certificates sent have a court injunction against them

Precautions:
Corporate investors to enclose Memorandum of Association/Trust
deed/Board resolution for the authorized signatories along with the
account opening form.
Details with respect to the bank account details of an investor must be
indicated in the space provided for the same in the account opening
form.
If an investor is interested in availing the facility of standing
instructions for credits to his account, then such instructions may be
given to the DP. Otherwise, he will need to give a receipt instruction to
his DP for receiving credits to his account.

BENEFITS OF DEMATERIALISATION
No stamp duty for transfer of securities in the Depository System. In
the case of physical shares, stamp duty of 0.25% of sale value is
payable on transfer of shares.

31

 Elimination of bad deliveries and all risks associated with physical

certificates such as loss in

transit, theft, mutilation, damage, etc.

Facility for freezing/locking of investor accounts to make it nonoperational for specified period.
Instead of filling up transfer deed(s) a simpler form is to be given `to
the DP.
Facility to pledge and hypothecate securities. Pledging Dematerialised
securities is easier and

advantageous as compared to pledging

physical shares. In respect of shares in "compulsory Demat" category,

banks prefer to lend against shares held in electronic form, and offer
better terms.
Odd lots are not differentiated in the electronic system. Even a single
share can be traded at the market rates without any reduction in
realisation.
Just like a bank branch, the DP will give a periodical statement of
account of holdings. In addition, investor can obtain a statement of
holdings as and when required for a fee.
In case investor loses the statement of holdings, he can inform his DP
and obtain a duplicate statement. Investor's statement of holdings
cannot be used by anybody else for trading in his account.

32

 When an investor opens an account with a DP, he signs an agreement

with the DP in which the DP will indemnify the investor for any misuse of his holdings. The depository will also ensure thatthe interests
of the investor are protected. Grievances, if any, against his DP will
be resolved by the Depository.
Every transaction in investor's account will have to be authorised by
him, which ensures total control of the investor over his investment
A safe and convenient way to hold securities and there is immediate
transfer of securities.

DEMAT PROCESS
1. The registered holder of the securities makes the request.
2. Securities

must

be

recognized

by

Depository

as

eligible.

3. Client submits DRF & physical certificates to DP. DP checks

securities.
4. Client defaces certificates and DP punches two holes on name of
company.
5. DP enters demat request in system for Depository.
6. DP dispatches certificates along with DRF to R&T.
7. Depository records the details and sends to R&T.
8. R&T agent verifies the details and confirms to Depository.
9. Depository credits the demat securities to BO a/c of client and
intimates DP electronically.
33

10.DP issues statement to client.

34

DEMAT -PROCESS

Demat Process:
Shareholders

Depository
Participants

Account Opening

The DP sends
Share certificates
to R&T agent for
dematerialisation

R&T
Agent

With Physical Certificate

Shareholder goes to DP with his

physical share certificates

Shareholder opens his account

with DP.

Demat Request
Form (DRF)

Shareholder
fills
DRF
in
duplicate, defaces the shares
and hands over to DP

Depository

DP
sends
information
electronically to Depository

Dematerialisation

Upon confirmation of Demat by

R&T Agent, the Depository
confirms Dematerialisation.

Credit to the BO
A/c. of the Investor

35

INFORMATION NEEDED FOR DEMAT ACCOUNT

An investor has to give his bank account details at the time of account
opening. It is for the protection of investors interest. The bank account
number will be mentioned on the interest or dividend warrant, so that such
warrant cannot be encashed by any one else. Further, cash corporate benefits
such as dividend, interest will be credited to the investors account directly
through the ECS (Electronic Clearing Service) facility, wherever available,
by the company.
An investor can change the details of his bank account. Since in the
depository system monetary benefits on the security balances are paid as per
the bank account details provided by the investor at the time of account
opening, the investor must ensure that any subsequent change in bank
account details is informed to the DP.
An Investor should immediately inform his/her DP if the address of the
investor changes, who in turn will update the records. This will obviate the
need of informing different companies.
An investor can open more than one account in the same name with the
same DP and also with different DPs.
An investor has not to keep any minimum balance of securities in his/her
accounts. Depository / DP can be chosen by investor as per convenience
irrespective of the DP of the broker.
The demat account must be opened in the same ownership pattern such as
securities owned individually in which the securities are held in the physical
form. e. g. if one share certificate is in the individual name and another
certificate is jointly with somebody, two different accounts would have to be
opened.
36

WHAT IS DEPOSITORY AND DEPOSITORY

PARTICIPANT

Depository can in many ways be compared to a bank. Securities of the

investors are held in electronic / book entry form by the Depository. Apart
from holding the securities, Depository also provides services related to
transactions in securities.
In India, a Depository Participant (DP) is described as an agent of the
depository. They are the intermediaries between the depository and the
investors. The relationship between the DPs and the depository is governed
by an agreement made between the two under the Depositories Act. In a
Strictly legal sense, a DP is an entity who is registered as such with SEBI
under the provisions of the SEBI Act.
Think of it like a bank. The head office where all the technology rests and
details of all accounts held is like the depository. And the DPs are the
branches that cater to individuals.
At present two Depositories viz. National Securities Depository Limited
(NSDL) and Central Depository Services (I) Limited (CDSL) are registered
with SEBI

37

NATIONAL SECURITIES DEPOSITORY LIMITED (NSDL)

NSDL was the first depository organization promoted by IDBI, UTI, and
National Stock Exchange (NSE). NSDL was set up to provide electronic
depository facilities for securities being traded in capital market. The
depositories ordinance was promulgated by the Government of India in
September 1995. The Securities and Exchange Board of India (SEBI) issued
guidelines for depositories in May, 1996.
NSDL has minimum SHIRAM INSIGHT of Rs 100 crores. NSDL deals with
shares in dematerialized form through depository participants who are agents
of investor banks, stockbrokers and financial institutions. NSDL Depository
Participant can be a public financial institution, bank, custodian, registered
stockbroker or a non-banking financial company subject to the approval
from the Depository Company and SEBI. NSDL aims at ensuring the safety
and soundness of Indian capital market by developing settlement solutions
that increase efficiency, minimize risk and reduce costs.

38

CENTRAL DEPOSITORY SERVICES (INDIA) LIMITED (CDSL)

CENTRAL DEPOSITORY SERVICEES LIMITED (CDSL) is second
depository in India, is set up to meet the objective the Act & to fulfill the
users need. CDSL is secured Certificate of Commencement of business
on Feb 8, 1999 from SEBI. 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. Each and every activity of CDSL stem from the essential
reason behind forming this depository, i.e. to encourage India's individual
investors to benefit from actively participating in a depository.

39

Services provided by Depository system

Dematerialisation (usually known as demat) is converting physical
certificates to electronic form.
Rematerialisation, known as remat, is reverse of demat, i.e. getting
physical certificates from the electronic securities.
Transfer of securities, change of beneficial ownership
Settlement of trades done on exchange connected to the Depository
Pledge / Hypothecation of demat shares, viz. Loan against shares
Electronic credit in public offering of the Companies
Non - Cash corporate benefits, viz. Bonus / Rights - direct credit into
electronic form
Depository restrict the risk of fraud

The charges for account closure and securities transfer due to

account closing.
SEBI vide Circular No. MRD/DoP/Dep/Cir-22 /05 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
40

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.
All other transfer of securities consequent to closure of account, not fulfilling
the above-stated criteria, would be treated like any other transaction and
charged as per the schedule of charges agreed upon between the BO and the
DP.

Freeze or lock of an account

Investors can freeze or lock their accounts for any given period of time, if so
desired. Accounts can be frozen for debits (preventing transfer of securities
out of accounts) or for credits (preventing any movements of hindrances into
accounts) or for both.

41

Trading / Settlement
Traditionally settlement system on Indian stock exchanges gave rise to
settlement risk due to the time that elapsed before trades were settled by
physical movement of certificates. The process of physical moving the
securities from seller to his broker to clearing corporation to the buyers
broker and finally to the buyer took time with the risk of delay somewhere
along the chain. Now depository holds securities in dematerialised form. The
procedure for buying and selling dematerialised securities is similar to the
procedure for buying and selling physical securities. The difference lies in
the process of delivery (in case of sale) and receipt (in case of purchase) of
securities.
In case of purchase: The broker will receive the securities in his account on the payout day
The broker will give instruction to its DP to debit his account and
credit investor's account
Investor will give Receipt Instruction to DP for receiving credit by
filling appropriate form. However one can give standing instruction
for credit in to ones accounts that will obviate the need of giving
Receipt Instruction every time.

In case of sale:The investor will give delivery instruction to DP to debit his account and
credit the brokers account. Such instruction should reach the DPs office at
least 24 hours before the pay-in as other wise DP will accept the instruction
only at the investors risk.
42

Settlement Process in CM segment of NSE

Explanations:
(1) Trade details from Exchange to NSCCL (real-time and end of day trade
file).
(2) NSCCL notifies the consummated trade details to CMs/custodians who
affirm back. Based on the affirmation, NSCCL applies multilateral
netting and determines obligations.
(3) Download of obligation and pay-in advice of funds/securities.
(4) Instructions to clearing banks to make funds available by pay-in time.
(5) Instructions to depositories to make securities available by pay-intime.
(6) Pay-in of securities (NSCCL advises depository to debit pool account of
custodians/CMs and credit its account and depository does it).
(7) Pay-in of funds (NSCCL advises Clearing Banks to debit account of
custodians/CMs and credit its account and clearing bank does it).
(8) Pay-out of securities (NSCCL advises depository to credit pool account
of custodians/CMs and debit its account and depository does it).
43

'Standing Instruction' given in the account opening form

In a bank account, credit to the account is given only when a 'pay in' slip is
submitted together with cash/cheque. Similarly, in a depository account
'Receipt in' form has to be submitted to receive securities in the account.
However, for the convenience of investors, facility of 'standing instruction' is
given. If you say 'Yes' for standing instruction, you need not submit 'Receipt
in' slip everytime you buy securities. If you are particular that securities can
be credited to your account only with your consent, then do not say 'yes' [or
tick ] to standing instruction in the application form.

Delivery Instruction Slip (DIS) and the precautions which one

need to observe with respect to Delivery Instruction Slips
To give the delivery one has to fill a form called Delivery Instruction Slip
(DIS). DIS may be compared to cheque book of a bank account. The
following precautions are to be taken in respect of DIS: Ensure and insist with DP to issue DIS book.
Ensure

that

DIS

numbers

are

pre-printed

and

DP

takes

acknowledgment for the DIS booklet issued to investor.

Ensure that your account number [client id] is pre-stamped.
If the account is a joint account, all the joint holders have to sign the
instruction slips. Instruction cannot be executed if all joint holders
have not signed.
Avoid using loose slips.
Do not leave signed blank DIS with anyone viz., broker/sub-broker.
44

 Keep the DIS book under lock and key when not in use.
If only one entry is made in the DIS book, strike out remaining space
to prevent misuse by any one.
Investor should personally fill in target account -id and all details in
the DIS.
It is possible to give delivery instructions to the DP over Internet .Both
NSDL and CDSL have launched this facility for delivering instructions to
your DP over Internet, called SPEED-e and EASI respectively. The facility
can be used by all registered users after paying the applicable charges.

Lending and borrowing of demat securities

If any person required to deliver a security in the market does not readily
have that security, he can borrow the same from another person who is
willing to lend as per the Securities Lending and Borrowing Scheme.
Lending and borrowing has to be done through an 'Approved Intermediary'
registered with SEBI. The approved intermediary would borrow the
securities for further lending to borrowers. Lenders of the securities and
borrowers of the securities enter into separate agreements with the approved
intermediary for lending and borrowing the securities.

Lending and

borrowing is affected through the depository system.

You can lend your securities through Approved Intermediaries registered
with SEBI.
One can lend his/her demat seurities by entering into an agreement with the
approved intermediary to be a lender under this scheme. After that, you may
lend securities any time by submitting lending instruction to your DP.
45

Intermediary may return the securities at any time or at the end of the agreed
period of lending. Intermediary has to repay the securities together with any
benefits received during the period of the loan.
One can receive the corporate benefits which would accrue on these
securities during the period of lending.The benefits will be given to the
Intermediary/borrower. However, whenever the securities are being
returned / recalled. Intermediary/borrower will return the securities together
with benefits received.

46

PHYSICAL SEGMENT
Change in Name / Status
-

All requests for change of name should be accompanied by a copy of

the notification in Official Gazette or a Newspaper.

Request for change of name consequent upon marriage/divorce should

be accompanied with marriage certificate/divorce decree.

For effecting change of status from minor to major, please send proof
of age (such as attested copy of Birth Certificate or School Leaving
Certificate)

In the case of limited companies, a certified copy of the Certificate of

Incorporation consequent to Change of Name issued by the Registrar
of Companies should be submitted along with Memorandum &
Articles of Association

The new specimen signature duly attested by holder's banker should

be lodged with the Company to take on record the new signature.

Change of Address
Please inform the R&TA viz Integrated Enterprises (India) Limited
immediately if there is any change in address, quoting Folio No. Duly signed
by the main (1st) holder as per specimen signature recorded with us. This is
the reason for which we would advise you not to send change of address
request by mail. If shares are held in demat form, please advice your DP
regarding change of address.

47

Loss of Share Certificates

Any communication to the Company regarding loss of share certificates
should always be signed by the shareholder as per specimen signature
registered with the Company, accompanied by FIR lodged with local police
station giving full details of lost certificate(s) such as certificate(s) Nos.,
Distinctive Nos. etc.
- Please immediately apply for injunction order in appropriate Court of Law
for stopping transfer, giving full details of Certificate Nos., Distinctive Nos.
etc.
- Upon receipt of such communication, the procedure to be followed for
obtaining duplicate share certificates will be advised

Nomination
Nomination when shares are held in physical form
Nomination will enable smooth inheritance of ownership of the shares by the
Nominee without any procedural difficulties. (Presently, there is no difficulty
where shares are registered in joint names. But if the shares are held in an
individual name, addition of a joint name can only be done as a transfer,
involving share transfer form, stamp duty, surrender of original certificates
etc. Following the nomination procedure eliminates all this inconvenience).
Therefore, if shares are held in a single name, , with the intention of holding
them for some more time, then please advise nomination immediately
without delay

Following Instructions for the Nomination

48

1.

Nomination can be made only by individuals, holding shares on their

own behalf singly or jointly. Non-individuals including society, trust,
body corporate, partnership firm, Karta of Hindu Undivided Family,
holder of power of attorney cannot nominate.
If the shares are held jointly, all joint holders must sign the nomination
form.

2.

A minor can be nominated by a holder of shares and in that event the

name and address of the Guardian must be given by the holder.

3.

The nominee shall not be a trust, society, body corporate, partnership

firm, Karta of Hindu Undivided Family or a power of attorney holder.
A non-resident Indian can be a nominee on repatriable basis.

4.

Nomination will stand cancelled upon transfer of shares.

5.

The Company will be fully discharged from its responsibility towards

the legal heirs of a shareholder, if the shares are transmitted as per the
nomination filed with the company, without any further reference to
the legal heirs of a deceased individual shareholder(s)

6.

Where the space provided in the Form is not sufficient, shareholders

are requested to attach separate sheet(s) giving details of distinctive
nos. of shares.

7.

The Nomination Form should be filed in duplicate with the Company,

who will return one copy thereof to the shareholder.

8.

Although Form 2B as prescribed does not provide for specimen

signature of nominee, this has been suggested in order to facilitate
smooth transmission of title to the nominee when the need arises.

ISIN
49

International Securities Identification Number (ISIN)

Each of the securities dematerialised in the NSDL depository bears a

distinctive ISIN an identification number. International Securities
Identification Number (ISIN) is a unique identification number for each
security issued in any of the International Standards Organisation (ISO)
member countries in accordance with the ISIN Standard (ISO 6166). ISO
6166 was developed for use in an international (cross-border) as well as
domestic trades. ISIN is a 12-character long identification mark. It has three
components - a pre-fix, a basic number and a check digit. The pre-fix is a
two-letter country code as stated under ISO 3166 (IN for India). The basic
number comprises nine alphanumeric characters (letter and/or digits). The
check digit at the end of the ISIN is computed according to the modulus 10
"Double-Add- Double". It establishes that the ISIN is valid.
Securities issued by the same company, issued at different times or carrying
different rights, terms and conditions are considered different securities for
the purpose of allocating ISIN and are allotted distinct ISINs. In India, SEBI
assigns ISIN to various publicly traded securities. Different ISINs are
allocated to the physical and dematerialised securities of the same issue.
SEBI being the national numbering agency for India has permitted NSDL to
allot international securities identification number (ISIN) for demat shares.
The ISINs allotted by NSDL does not at any point of time breach the
uniqueness of ISIN of physical form for the same security. ISIN for a
security is allotted when the security is admitted to NSDL. The numbering
system is simple. The numbering system of ISIN is in compliance with the
structure of ISIN adopted by SEBI.
International Securities Identification Number:
50

1. Issued by International Standards Organisation (ISO) member

countries in accordance with ISO 6166.
2. ISIN is 12 digit alpha numeric number.
3. It has three components, prefix, basic & check digit.
4. Prefix is a two letter country code i.e. IN for India.
5. The basic number has nine alpha numeric characters.
6. The last digit is check digit. It ensures the ISIN is valid.

Numbering system of ISIN

The numbering structures for securities in NSDL is of 12 digit alpha numeric
string. The first two characters represent country code i.e. IN(in accordance
wirh ISO 3166). The third characters represents the issuer type as detailed
below:

51

Issuers type

Issuer type

code allotted

Central government

State government

Municipal corporation

Union territories

Company, statutory corporation,

Baking company

Mutual funds including UTI

The list may be expanded per the needs. Maximum issuer types can be 35 (A
to Z and 0 to 8. the pro-rata dividend shares are identified by 9). The next 4
characters (fourth to seventh character) represent company identity. The first
3 characters are numeric. The fourth character is alpha character. The
numbering begins with 001A and continues till 999A and proceeds to
001B. the next two characters (the eight and ninth characters) represent
security type for a given issuer. Both the characters are numeric. The next
two characters (the tenth and eleventh characters) are serially issued for each
security of the issuer entering the system. Last digit is double-add-double
check digit.

52

The security types are planned which may be expanded as per the need as
detailed below:Security type

Code

Equity

01

Non voting equity

02

Convertible preference shares

03

Non convertible preference shares

04

Mutual fund units close ended

05

Mutual fund units-open ended

06

Secured debentures

07

Unsecured debentures

08

Regular return bonds-promissory notes

09

Floating rate bonds

10

Deep discount bonds

11

Step discount bonds

12

Warrants

13

53

CHAPTER III
INDUSTRY PROFILE
AND
COMPANY PROFILE

54

INDUSTRY PROFILE

NATIONAL STOCK EXCHANGE

The National Stock Exchange of India (NSE) situated in Mumbai - is the largest
and most advanced exchange with 1016 companies listed and 726 trading members.
Capital market reforms in India and the launch of the Securities and Exchange Board of
India (SEBI) accelerated the incorporation of the second Indian stock exchange called the
National Stock Exchange (NSE) in 1992. After a few years of operations, the NSE has
become the largest stock exchange in India.
Three segments of the NSE trading platform were established one after another. The
Wholesale Debt Market (WDM) commenced operations in June 1994 and the Capital
Market (CM) segment was opened at the end of 1994. Finally, the Futures and Options
segment began operating in 2000. Today the NSE takes the 14th position in the top 40
futures exchanges in the world.
In 1996, the National Stock Exchange of India launched S&P CNX Nifty and CNX
Junior Indices that make up 100 most liquid stocks in India. CNX Nifty is a diversified
index of 50 stocks from 25 different economy sectors. The Indices are owned and
managed by India Index Services and Products Ltd (IISL) that has a consulting and
licensing agreement with Standard & Poor's.
In 1998, the National Stock Exchange of India launched its web-site and was the first
exchange in India that started trading stock on the Internet in 2000. The NSE has also
proved its leadership in the Indian financial market by gaining many awards such as 'Best
IT Usage Award' by Computer Society in India (in 1996 and 1997) and CHIP Web Award
by CHIP magazine (1999).

55

The NSE is owned by the group of leading financial institutions such as Indian Bank or
Life Insurance Corporation of India. However, in the totally de-mutualised Exchange, the
ownership as well as the management does not have a right to trade on the Exchange.
Only qualified traders can be involved in the securities trading.
The NSE is one of the few exchanges in the world trading all types of securities on a
single platform, which is divided into three segments: Wholesale Debt Market (WDM),
Capital Market (CM), and Futures & Options (F&O) Market.
Each segment has experienced a significant growth throughout a few years of their
launch. While the WDM segment has accumulated the annual growth of over 36% since
its opening in 1994, the CM segment has increased by even 61% during the same period.
The National Stock Exchange of India has stringent requirements and criteria for the
companies listed on the Exchange. Minimum capital requirements, project appraisal, and
company's track record are just a few of the criteria. In addition, listed companies pay
variable listing fees based on their corporate capital size.
The National Stock Exchange of India Ltd. provides its clients with a single, fully
electronic trading platform that is operated through a VSAT network. Unlike most world
exchanges, the NSE uses the satellite communication system that connects traders from
345 Indian cities. The advanced technologies enable up to 6 million trades to be operated
daily on the NSE trading platform.
NSE Nifty:
The S&P CNX Nifty (nicknamed Nifty 50 or simply Nifty), is the leading index for large
companies on the National Stock Exchange of India. S&P CNX Nifty is a well diversified
50 stock index accounting for 22 sectors of the economy. It is used for a variety of
purposes such as benchmarking fund portfolios, index based derivatives and index funds.
Nifty was developed by the economists Ajay Shah and Susan Thomas, then at IGIDR.
Later on, it came to be owned and managed by India Index Services and Products Ltd.
(IISL), which is a joint venture between NSE and CRISIL. IISL is India's first specialised
company focused upon the index as a core product. IISL have a consulting and licensing
agreement with Standard & Poor's (S&P), who are world leaders in index services.
56

CNX stands for CRISIL NSE Indices. CNX ensures common branding of indices, to
reflect the identities of both the promoters, i.e. NSE and CRISIL. Thus, 'C' stands for
CRISIL, 'N' stands for NSE and X stands for Exchange or Index. The S&P prefix belongs
to the US-based Standard & Poor's Financial Information Services.
NSE other indices:
S&P CNX Nifty
CNX Nifty Junior
CNX 100
S&P CNX 500
CNX Midcap
S&P CNX Defty
CNX Midcap 200

57

BOMBAY STOCK EXCHANGE:

The Bombay Stock Exchange Limited (formerly, The Stock Exchange, Mumbai;
popularly called The Bombay Stock Exchange, or BSE) is the oldest stock exchange in
Asia. It is located at Dalal Street, Mumbai, India.
Bombay Stock Exchange was established in 1875. There are around 5,600 Indian
companies listed with the stock exchange, and has a significant trading volume. As of
October2006, the market capitalization of the BSE was about Rs. 33.4 trillion (US $ 730
billion). The BSE SENSEX (SENSitive indEX), also called the BSE 30, is a widely used
market index in India and Asia. As of 2005, it is among the 5 biggest stock exchanges in
the world in terms of transactions volume.
History:
An informal group of 22 stockbrokers began trading under a banyan tree opposite the
Town Hall of Bombay from the mid-1850s, 1875, was formally organized as the Bombay
Stock Exchange (BSE).In January 1899, the stock exchange moved into the Brokers Hall
after it was inaugurated by James M MacLean. After the First World War, the BSE was
shifted to an old building near the Town Hall. In 1956, the Government of India
recognized the Bombay Stock Exchange as the first stock exchange in the country under
the Securities Contracts (Regulation) Act.1995, when it was replaced by an electronic
(eTrading) system named BOLT, or the BSE Online Trading system. In 2005, the status
of the exchange changed from an Association of Persons (AoP) to a full fledged
corporation under the BSE (Corporatization and Demutualization) Scheme, 2005 (and its
name was changed to The Bombay Stock Exchange Limited).

58

BSE Sensex:
The BSE SENSEX (also known as the BSE 30) is a value-weighted index composed of
30 scrips, with the base April 1979 = 100. The set of companies which make up the index
has been changed only a few times in the last 20 years. These companies account for
around one-fifth of the market capitalization of the BSE.
SENSEX, first compiled in 1986 was calculated on a "Market Capitalization-Weighted"
methodology of 30 component stocks representing a sample of large, well-established and
financially sound companies. The base year of SENSEX is 1978-79. The index is widely
reported in both domestic and international markets through print as well as electronic
media. SENSEX is not only scientifically designed but also based on globally accepted
construction and review methodology. From September 2003, the SENSEX is calculated
on a free-float market capitalization methodology. The "free-float Market CapitalizationWeighted" methodology is a widely followed index construction methodology on which
majority of global equity benchmarks are based.
The growth of equity markets in India has been phenomenal in the decade gone by. Right
from early nineties the stock market witnessed heightened activity in terms of various bull
and bear runs. More recently, the bourses in India witnessed a similar frenzy in the 'TMT'
sectors. The SENSEX captured all these happenings in the most judicial manner. One can
identify the booms and bust of the Indian equity market through SENSEX.
The values of all BSE indices are updated every 15 seconds during the market hours and
displayed through the BOLT system, BSE website and news wire agencies.
SENSEX calculation:
SENSEX is calculated using a "Market Capitalization-Weighted" methodology.
As per this methodology, the level of index at any point of time reflects the total market
value of 30 component stocks relative to a base period. (The market capitalization of a
company is determined by multiplying the price of its stock by the number of shares
issued by the company). An index of a set of combined variables (such as price and
59

number of shares) is commonly referred as a 'Composite Index' by statisticians. A single

indexed number is used to represent the results of this calculation in order to make the
value easier to work with and track over time. It is much easier to graph a chart based on
indexed values than one based on actual values.
The base period of SENSEX is 1978-79. The actual total market value of the stocks in the
Index during the base period has been set equal to an indexed value of 100. This is often
indicated by the notation 1978-79=100. The formula used to calculate the Index is fairly
straightforward. However, the calculation of the adjustments to the Index (commonly
called Index maintenance) is more complex.
The calculation of SENSEX involves dividing the total market capitalization of 30
companies in the Index by a number called the Index Divisor. The Divisor is the only link
to the original base period value of the SENSEX. It keeps the Index comparable over time
and is the adjustment point for all Index maintenance adjustments. During market hours,
prices of the index scrips, at which latest trades are executed, are used by the trading
system to calculate SENSEX every 15 seconds and disseminated in real time.During
market hours, prices of the index scrips, at which trades are executed, are automatically
used by the trading computer to calculate the SENSEX every 15 seconds and
continuously updated on all trading workstations connected to the BSE trading computer
in real time.
BSE - other Indices:
Apart from BSE SENSEX, which is the most popular stock index in India, BSE uses
other stock indices as well:
BSE 500
BSE PSU
BSE MIDCAP
BSE SMLCAP

60

 BSE BANKEX

COMPANY PROFLE

61

Angel Broking's tryst with excellence in customer relations began in 1987. Today, Angel
has emerged as one of the most respected Stock-Broking and Wealth Management
Companies in India. With its unique retail-focused stock trading

business model,

Angel is committed to providing Real Value for Money to all its clients.
The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock
Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX &
MCX. Angel is also registered as a Depository Participant with CDSL.
Our Business:

Equity Trading
Commodities
Portfolio Management Services
Mutual Funds
Life Insurance
IPO
Depository Services
Investment Advisory
Angel Group
Angel Broking Ltd.
Angel Commodities Broking Ltd.
Angel Securities Ltd.

62

Our CRM Policy : Customer is King

A Customer is the most Important Visitor on our
premises. He is not dependent on us, but we are
dependent on him. He is not an interruption in our
work. He is the purpose of it. He is not an outsider
in our business. He is part of it. We are not doing
him a favour by serving him. He is doing us a
favour by giving us an opportunity to do so.
- Mahatma Gandhi
Business Philosophy

Ethical practices & transparency in all our dealings

Customers interest above our own

Always deliver what we promise

Effective cost management

Our Quality Assurance Policy
We are committed to providing world-class products and
services which exceed the expectations of our customers,
achieved by teamwork and a process of continuous
improvement.

63

Mr. Dinesh Thakkar

Founder Chairman & Managing Director
The Angel Group of Companies was brought to life by Mr. Dinesh Thakkar. He
ventured into stock trading with an intention to raise

capital for his own independent

enterprise. However, he recognized the opportunity offered by the stock market to

serve individual investors. Thus Indias first retail-focused stock-broking house was
established in 1987. Under his leadership, Angel became the first broking house to
embrace new technology for faster, more effective and affordable services to retail
investors.
Mr. Thakkar is valued for his understanding of the economy and the stock-market. The
print and electronic media often seek his views on the market trend as well as investment
strategies.
Mr. Lalit Thakkar
Managing Director Institutional broking
Mr. Lalit Thakkar is the motivating force behind Angels highly acclaimed Research
team. Hes been a part of the senior management team since the Angel Groups inception.
His technical and fundamental outlook has provided impetus to Angels market research
team. Research-based & personalized advisory services are Angels forte, and Mr.
Lalit Thakkar has undoubtedly been the brain behind it.
When it comes to analyzing the market, Mr. Lalit Thakkar is truly a genius. His
hands-on experience and fundamental knowledge of the market can predict the
market trend early. His views on the market trend are often quoted in the print and
electronic media.
Investing in shares or stock market is inarguably the best route to long-term
wealth accumulation. However, it can also be a very risky proposition due to high riskreturn trade-off prevalent in the stock market. Hence, it is more appropriate to take
help of an experienced and trustworthy expert who will guide you as to when, where
and how to invest. Angel provides guidance in the exciting world of stock market with

64

suitable trading solutions and value-added tools and services to enhance your trading
experience.
Online Trading
Three different online products tailored for traders & investors
Customized single screen Market Watch for multiple exchanges
Real-time rates
Flash news & intra-day calls
Intra-day & historical charts with technical tools
Online research
E-broking & back-office software training
Quality Research
Wide range of daily, weekly and special Research reports
Expert Sector Analysts with professional industry experience
Advisory
Real-time market information with News updates
Investment Advisory services
Dedicated Relationship Managers
Portfolio Management Services
Support
24x7 Web-enabled Back Office
Centralized Help Desk
Live Chat support system
The derivative segment is a highly lucrative market that gives investors an opportunity
to earn superlative profits (or losses) by paying a nominal amount of margin. Over
past few years, Future & Options segment has emerged as a popular medium for
trading in financial markets. Future contracts are available on Equities, Indices, Currency
and Commodities.
Angel with its membership as Trading and Clearing Member of NSE F&O Segment
and BSE Derivatives Segment, provides you a gateway to the exciting world of
derivative market.
65

Work Culture.At Angel, we keep exploring new paths to provide the best value to all our
internal and external customers. We consider people as our biggest asset and believe
in creating long term relationships by nurturing talent from within. A fast-growing,
forward-looking organization like ours, demands HR to be a key responsibility area of our
core management team.
Our HR team constantly explores ways to enhance and augment the knowledge
base and productivity of all Angels by providing various learning and development
Programs. Our three tier Leadership Development program helps all star performers
to grow and develop their managerial skills to become effective mentors for their
teams and thereby take on the next level of responsibility effectively. Ours is a winning
t eam of highly determined, motivated, and adaptable people, all working diligently to
take Angel's exciting success story forward.

66

HR Philosophy
At Angel, People come first. Along with our customers, our employees are equally vital to
our organization. The Business of HR is to foster an entrepreneurial spirit whereby
Angels can operate with ownership as an entrepreneur (profit center) within the confines
of their job role and earn over and above their fixed salaries.
We believe in inculcating a sense of responsibility and ownership in all Angels which
brings out the entrepreneurial zeal to explore potential within as well as beyond job
boundaries.

Our HR Philosophy is to engage employees at professional, emotional and material

levels.

We aim to create an environment conducive to both personal and professional

development of the employees, leading to a productive and happy work force

Angel believes that people impact business and therefore each and every Angel is
a key resource and a valuable asset

Our business philosophy of being transparent in all our dealings with our
customers, is equally applicable in dealings with employees

We encourage initiative, provide professional freedom and empower Angels based

on trust

67

CHAPTER IV
DATA ANALYSIS
AND
INTERPRETATION

68

Research is conducted for finding the solution of the problem. So to find the
solution of the problem data analysis and interpretation is must. There are
some questions related to this research to interpret the result. The sample
size in this study consisted of 50 individuals and data analyzed from the
response of these 50 individuals.
1. ARE YOU AWARE OF STOCK MARKET?
The basic purpose of this question is to know about how many people are
aware of the stock market and its activities.
NUMBER OF
RESPONSES

% OF
RESPONSES

YES

50

100

NO

TOTAL

50

100

RESPONSES

Analysis:This graph shows that all the 50 individuals were aware of stock market. So
it can also be possible that investors will rise in near future.
2. ARE YOU AWARE OF DEMAT ACCOUNT?
69

The basic purpose of this question is to know about awareness of demat

account among respondents.
NUMBER
OF
RESPONSES

% OF
RESPONSES

YES

40

80

NO

10

20

50

100

RESPONSES

TOTAL

Analysis:The above table clearly shows that from a sample size of 50 respondents, 40
individuals were aware of demat account.

3. DURATION FOR WHICH INVESTOR HAS BEEN TRANSACT

IN THE STOCK EXCHANGE
70

The purpose of this question is to know about the duration for which
investor has been transact in stock exchange.
DURATION

NUMBER
OF
RESPONSES

% OF
RESPONSES
[

LESS THAN 1 YEAR

20

40

1 YEAR

10

2 YEAR

10

20

15

30

50

100

MORE THAN 2YEAR

TOTAL

40
35
30
25
20
15
10
5
0

Analysis:The above table clearly shows that from a sample size of 50 respondents, 15
have been trading in the stock exchange for more than 2 years. 10 investors
were trading for 2 years and remaining 25 for one year or less than a year.
4. DO YOU TRADE- FREQUENTLY OR OCCASIONALLY?
71

This purpose of this question is to find out how many persons trade
frequently or occasionally.
NUMBER
OF
RESPONSES

% OF
RESPONSES

FREQUENTLY

20

40

OCCASIONALLY

30

60

50

100

TRADE

TOTAL

Analysis:This chart shows that 30 individuals trade occasionally and 20 individuals

trade frequently.

5. WHICH TYPE OF SCRIPTS YOU HAVE?

72

The purpose of this question is to know about which type of scripts the
respondents have.
NUMBER
OF
RESPONSES

% OF
RESPONSES

PHYSICAL

15

30

DEMATERIALISED

35

70

50

100

SCRIPTS

TOTAL

Analysis:Above graph shows that many individuals have dematerialized scripts and
some have physical scripts.

6. DO YOU CONVERT YOUR SHARES ELECTRONICALLY?

73

RESPONSE
The

NUMBER
OF
RESPONSES

% OF
RESPONSES
basic

YES

30

60

NO

20

40

50

100

TOTAL

purpose of this question is to know about how many persons are

interested to convert their shares electronically.

74

Analysis:This chart shows that 30 individuals wanted to convert their shares

electronically and rest were not.
7. ARE YOU SATISFIED WITH DEMAT SERVICE PROVIDER?
The purpose of this question is know satisfaction about demat service
provider.
NUMBER
OF
RESPONSES

% OF
RESPONSES

YES

45

90

NO

10

50

100

RESPONSES

TOTAL

75

Analysis:This graph shows that most of the people were satisfied with demat service
provider.

8. PROBLEMS

BEING

FACED

BY

THE

RESPONDENTS

RELATING TO TRADING
This question tells us about the type of problems faced by the
respondents.
NUMBER
OF
RESPONSES

% OF
RESPONS
ES

10

20

OTHER TYPE
OF PROBLEM

20

40

NO PROBLEM

20

40

50

100

PROBLEMS
NO TRANSFER OR BAD
DELIVERY OF SHARES

TOTAL

76

Analysis:From the above chart we can see that 20 investors faced no problem due to
the introduction of DEMAT. Nearly 10 respondents faced problems due to
non-transfer and bad delivery of shares. Because of many sick companies
being listed in the stock exchange, the problem of non-receipt of dividend
can be found among 7 investors. There were 20 persons who were facing
other problems.

9. Why do you like Your Securities In Electronic form

Chart Title

Axis Title

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

Interpretation
In above chart showing 92% people for security reason they are investing dmat form and
89% people for flexibility in dmat account buying and selling is easy to trade 97% people
telling easy way to buy sell securities

77

10. Do you know Rules and Regulation of D-mat account

Chart Title
100%
90%
80%
70%
60%
Axis Title

50%
40%
30%
20%
10%
0%

PAN Card

SBTS

Adress Proof Bank Account

Steps involved in opening a 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 from April 1, 2012
in above chart 55 people not aware of pan card is mandatory for dmat account

78

11.Do you Aware of D-mat Account Charges

Chart Title

Axis Title

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

Depending on the DP, there may or may not be an opening account fee. Private banks,
such as HDFC Bank and AXIS Bank, do not have one. However, players such as ICICI
Bank, Globe Capital, Karvy Consultants Bajaj capital limited and the State Bank of India
to do so. But most players levy this when you re-open a demat account, though the Stock
Holding Corporation offers a lifetime account opening fee, which allows you to hold on
to your demat account over a long period. This fee is refundable
This is also known as folio maintenance charges, and is generally levied in advance
The transaction fee is charged for crediting/debiting securities to and from the account on
a monthly basis. While some DPs, such as SBI, charge a flat fee per transaction, HDFC
Bank and ICICI Bank peg the fee to the transaction value, subject to a minimum amount.
The fee also differs based on the kind of transaction (buying or selling). Some DPs charge
only for debiting the securities while others charge for both. The DPs also charge if your
instruction to buy/sell fails or is rejected. In addition, service tax is also charged by the
DPs.

79

12.

Please specify reasons D-mat Account With This Company

Chart Title

Axis Title

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

Most people satisfied with 84% good and only 10% people
telling services are bad brokerage also very good 60% telling
company need to change the transparency way

80

13.What is Your Turnover in D-mat account ?

Turnover
A

10,000-50,000

32

50,001-100000

58

1,00,001-above

10

Chart Title

Turnover
A
B
C

81

14,How much you are generating brokerage per day in your

d-mat account ?
Brokerage
A

1000-5000

75

5,001-10,000

22

10,001-above

B; 3
A; 22

Brokerage; 75

82

15.. where you have invested?

a) Futures
c) Commodities

b) Options
d) Others

Futures
Commodities
Others
Total
Missing
Total

where you have invested?

Percent
12
8
28
48
52
100

Valid Percent
25
16.67
58.33
100

where you have invested?

If yes then where you have invested?

Futures

Commodities

Others

Total

Missing

Graph 15: if yes then where you have invested?

Interpretation: Out of 50 Investors

[Majority of investors has invested in others, 12% investors have invested in
Futures, & only 8% investors have invested in commodities.]

83

16. Which type of Investment do you prefer?

a) Bank Deposit
b) Stock Market
c) Commodities
d) Real Estate
e) Insurance
f) Others

Type of Investment respondents Prefer

Frequency
Percent
Valid Percent
56
56
Bank Deposit
26
26
Stock Market
2
2
Real Estate
8
8
Insurance
8
8
Others
100
100
Total
Type of Investment Investors Prefer

8%
8%
2%
Bank Depost

Stock Market

Real Estate

26%

56%

Insurance

others

Graph-: Type of Investment Investors Prefer

Interpretation: Out of 100 Investors
[Majority of investors invest still in bank & later followed by Stock market, investors still
consider banks as a safe way to invest & were the returns are assured when compared to stock
market because of its recent fluctuation, global meltdown etc.]

84

17.in which segment you investing or trading?

Capital market Derivatives

85

Commodity Market

Currency market Derivatives

Interstate derivatives

Total

100

investing

Currency market Derivatives; 7% Interstate derivatives; 1%

Commodity Market ; 7%

Capital market Derivatives; 85%

Majority of investors invest still in bank & later followed by Stock market, investors
still consider banks as a safe way to invest & were the returns are assured when compared
to stock market because of its recent fluctuation, global meltdown etc.]

85

18.you are using D-mat account for Intraday Short term Long Term?

Intraday

52

Short Term

28

Long Term

20
100

Investing Term
Intraday

Short Term

Long Term

20%
52%
28%

86

19. From whom do you take advice?

a) Brokers
c) Friends

Brokers
Family
Friends
Others
Total
Missing
Total

b) Family
d) Others
From whom do you take advice?
Percent
Valid Percent
18
64.28
6
21.42
2
7.14
2
7.14
28
100
72
100
From whom do you take advice?

2%
Brokers

Family

Friends

Others

Total

Missing

If yes then from whom do you take advice?

Interpretation: Out of 100 Investors
[Majority of investors takes advice from brokers, 6% investors take advice from
family, & 2% each take advice from Friends & others while investing in derivatives. the
outcome says that Brokers can educate well to the investors while investing in
derivatives.]

Do you Aware Any Security Analysis?

87

Fundamental analysis

15

Technical Analysis

No Idea

76

Analysis

Fundamental analysis
Technical Analysis
No Idea

Above Chart Showing there is no any education about technical

analysis major people not aware of security analysi 76%

88

CHAPTER V
FINDINGS, SUGGESTION
AND
CONCLUSION

89

FINDING
The major finding of project is 100 individuals were aware of stock
market. So it can also be possible that investors will rise in near future.
clearly shows that from a sample size of 100 respondents, 40
individuals were aware of demat account
15 have been trading in the stock exchange for more than 2 years. 10
investors were trading for 2 years and remaining 25 for one year or
less than a year
20 investors faced no problem due to the introduction of DEMAT.
Nearly 10 respondents faced problems due to non-transfer and bad
delivery of shares. Because of many sick companies being listed in the
stock exchange, the problem of non-receipt of dividend can be found
among 7 investors. There were 20 persons who were facing other
problems
92% people for security reason they are investing dmat form and 89%
people for flexibility in dmat account buying and selling is easy to
trade 97% people telling easy way to buy sell securities
Steps involved in opening a 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 from April 1, 2012
in above chart 55 people not aware of pan card is mandatory for d
mat account
This is also known as folio maintenance charges, and is generally
levied in advance

SUGGESTIONS AND RECOMMENDATIONS

90

 As many of the people who dealt in share market are aware of

SHIRAM INSIGHT STOCK BROKING LIMITED S name but not
of its services. So company should advertise its services , so that
people can be made aware of all the services provided by the
company.
Most if the people are not finding any spare time to convert their
shares electronically. So company should approach to such people at
their doorstep to open their demat account.
As far as people preference regarding opening of demat a/c is
concerned then they mainly prefer two factors i.e. service and trust. So
it becomes necessary for the company to take care of these two
factors.

CONCLUSION

91

 From the above analysis we have come to this conclusion that most of
the people are aware of Demat Account and very much interested
in screen based trading.

This graph shows that most of the people were satisfied with demat
service provider.

The company can think of tapping the existing demat account holders
and provide them enough information on capital market and enable
them to trade in the same. This will help the company also to increase
their income.
The company has to create and maintain a database of prospective
customers from time to time, to keep track of the people falling in
different income levels and their investing patterns. This is possible if
continuous contacts are maintained with the customers.

92

BIBLIOGRAPHY

93

BIBLIOGRAPHY
SHIRAM INSIGHT Stock Broking Limited forms for opening
depository and trading account.
Study material of capital market and derivatives market of
NCFM.

Study material of capital market and derivatives market of

BCFM.
Zikmund, William G; Business Research Methodology, Seventh
Edition, Thompson South Western Publication
Websites Visited
www.sebi.gov.in
www.nseindia.com
www.bseindia.com
www.nseindia.com

94

QUESTIONAIRE
NAME:

_________________________________

CONTACT NUMBER:

_________________________________

OCCUPATION:

_________________________________

ADDRESS:

_________________________________

1. Are you aware of stock market?

(a) Yes

(b) No

2. Do you deal in share?

(a) Yes

(b) No

3. Are you aware of DEMAT?

(a) Yes

(b) No

4. Are you aware of REMAT?

(a) Yes

(b) No

5. How long have you been transacting in the stock exchange?

(a) Less than 1 year
(c) 2 year

(b) 1 year
(d) More than 3 year

6. Do you trade frequently or occasionally?

(a) Frequently

(b) Occasionally

95

7. In which securities do you trade frequently?

(a) Equity

(b) Bonds

(c) Debentures

(d) Futures & Options

(e) All

8. Which type of script you have?

(a) Physical

(b) Dematerialized

9. Why you have not dematerialized your script?

(a) Lack of awareness

(b) Time constraint

(c) Liability of changes

10.Do you like to convert your shares electronically?
(a) Yes

(b) No

11.On what basis you have taken your decisions of opening of demat
A/c?
(a) Service

(b) Changes

(c) Convenience

12.Are you satisfied with your demat service provider?

(a) Yes

(b) No

13. What type of problems do you centrally face when you trade in
securities?
(a) Non transfer of shares

(b) Other type of problems

(c) Bad transfer of shares

(d) No Problem

96