Demat Account

SR.NO

PARTICULARS

Introduction

Aims & objectives

How to open a demat account?

Icicidirect.com: procedure, benefits

& importance.
Comparative analysis of various
stock broking companies

Data interpretation and analysis

Findings and conclusion

Suggestions and recommendations

PAGE.NO

REMARKS

Demat Account
Introduction

At the time of our grandfathers, you would have notice that they may have a black briefcase,
filled with all the physical Share certificates and confidential documents, however, in the
future, with the advent of new technologies, moved them to materialize all the documents in a
portfolio, this is the simplest description of Demat account. Demat trading through the kind
of e-portfolio, where you can keep all of their stocks and bonds.
Demat account can be defined as, The account in which shares and securities are held in
dematerialized-form.
E-trading and Demat trading has transformed the capital market in India. With the help of
Demat trading and trading account, purchase and sale of shares has become much faster and
even process than trade through physical broker.
Earlier if someone wants to invest in the stock market, he should contact the broker on the
phone or meet him personally. But with the introduction of online trading, even common or
small investor gets an opportunity to use the service at an affordable price that is much less
than physical broker charged by phone. Internet commerce gave the customer real-time
access to information on the accounts, stock quotes and interactive market research
developed trade. It helps to get rid of the painstaking process of investing in the stock market.

Demat Account

Aims & Objectives

India adopted the Demat System for electronic storing, wherein shares and securities are
represented and maintained electronically, thus eliminating the troubles associated with paper
shares. After the introduction of the depository system by the Depository Act of 1996, the
process for sales, purchases and transfers of shares became significantly easier and most of
the risks associated with paper certificates were mitigated.
In 1996, trading began on NSE for shares held in demat account form. It was the beginning of
a new paperless trading stock market trading environment. If an investor buys a share today,
it gets credited to the investor's account in two days. Today, shares get transferred to the
investor's demat account.

The following are the objectives:

To assess the perception of traders about ICICI Securities Ltd in Navi Mumbai.
To determine the satisfaction levels of consumers with ICICI Securities Ltd in Navi
Mumbai city.
To know the market share of ICICI Securities Ltd.
To know the mechanism in the De-mat.
To study the process of De-mat.
To know the advantages of the De-mat.
To compare ICICI Securities Ltd. With other broking firms in respect of brokerage
and activation charges.

Demat Account

To know about problems faced in trading by traders in Navi Mumbai City. How
Open A Demat Account?

Opening a De-mat Account

To

Documents to be attached

Getting started
1. Choose a Depository Participant.(DP)
2. Fill up an account opening form
provided by DP, and sign an
agreement with DP in a standard
format prescribed by the depository.
3. DP provides the investor with a copy
of the agreement and schedule of
charges for his future reference.
4. DP opens the account and provides

1. Passport size photographs

2. Proof of residence (POR) - Any one
of Photo Ration Card with DOB /
Photo Driving License with DOB /
Passport copy / Electricity bill /
Telephone bill
3. Proof of identity (POI) - Any one of
Passport copy / Photo Driving
License with DOB / Voters ID Card /

the investor with a unique account

PAN Card / Photo Ration Card with

number, also known as Beneficiary

DOB

Owner Identification Number (BO

ID).

Fees involved for opening a Demat Account:

1. Account-opening fee
2. Annual maintenance fee
3. Custodian fee
4. Transaction fee

4. PAN card

Demat Account

Convenience of Opening a Icicidirect.Com Demat Account

The 3-in-1 trading account gives you the convenience of opening a

trading, demat & bank account all in one go. Trade in Shares, Futures &
Options; Currencies, invest in Mutual Funds, IPOs and Life Insurance
through our seamless and secure 3-in-1 online trading account.

Demat Account

Demat Account

Earn 4% interest on unutilized funds

In a single platform, you can manage your online trading account as well as savings
account. Hence, you keep on earning 4% interest on the allocated unutilized amount for
trading.

Tracking and Review

Our Portfolio Tracker and Watch list along with SMS Alerts always keep you updated on
the status of your investments, so that you can act on them when required.

Wide range of products

You can trade in shares both on NSE and BSE, Futures & Options, Currencies and invest
in Mutual Funds, IPOs and Life Insurance through our online trading platform. Also avail
leverage plans like - Margin, Margin PLUS.

Innovative Features
Our Valid Till Cancel (VTC) feature helps you execute a buy or sell order based on a
price trigger set for a period of 45 days, therefore sparing you the effort of following the
market on a daily basis.

All inclusive Brokerage

Our brokerage is all-inclusive and also includes the DP charges levied by Depositary
Participant which is higher of 0.04% or 25 every time shares are debited from your Demat
account. It is generally a common market practice to charge separately. NSDL / CDSL
charges and other statutory charges are levied separately

Accessibility on multiple platforms

Demat Account

You can access our online trading platform on the web, mobile, desktop or use our call
and trade facility, so that you dont miss out on any market opportunities.

Investor Knowledge Center

Our customer knowledge camps teach you about multiple investment options, how to
build a portfolio, help define you investment goals and explain the various features of our
online trading platform

Advisory Services
Our advice is categorized based on risk, return and time horizon of investments, with over
200 companies covered across multiple sectors we cover the depth and width of the
market.

Customer Service
We are at your service with just a click. Our expert will call you for any assistance with
respect to queries on your trading account at your convenience. You get access to a
Dedicated Call Centre which is operational from morning 8:00 a.m. to evening 8:00 p.m.

Demat Account

COMPARATIVE ANALYSIS OF VARIOUS STOCK BROKING COMPANIES

Online Broker

Brokerage for
Delivery

Brokerage for Intraday

trading

SHAREKHAN
BROKERAGE CHARGES

0.03% - 0.50%

0.03% - 0.10%

MOTILAL OSWAL
BROKERAGE CHARGES

0.30% - 0.50%

0.03% - 0.15%

ANGEL BROKING
BROKERAGE CHARGES

0.50%

0.02% - 0.03%

ICICI DIRECT
BROKERAGE CHARGES

0.75%

0.15%

INDIABULLS
BROKERAGE CHARGES

0.25% - 0.50%

0.05% - 0.10%

HDFC SECURITIES
BROKERAGE CHARGES

0.50%

0.15%

UTI SECURITIES
BROKERAGE CHARGES

0.80%

0.15%

RELIGARE
BROKERAGE CHARGES

0.20% - 0.30%

0.02% - 0.03%

0.50%

0.10%

INDIA INFO LINE BROKERAGE

CHARGES

Demat Account

DATA INTERPRETATION AND ANALYSIS

1. Awareness about online tradingTable 1: Table showing awareness about online trading
Options
Yes
No
Total

% Of Responses
75%
25%
100

80%
70%
60%
50%
40%
30%
20%
10%
0%
Yes

No

Fig 1: Graph Showing Awareness about online trading.

Interpretation:
With the increase in use of technology the awareness towards online share trading has
increased a lot .The awareness is expected to increase further with the increase in internet
education.

Demat Account

2. Problem faced by people regarding trading

Table 2: Table showing problems faced by people regarding tradingOptions
Lack of knowledge
Unsatisfactory services
Charges by the broking firm
Total

% of Responses
50
30
20
100

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

Fig 2: Graph showing problems regarding trading among people.

Interpretation:
Most of the people are not having full knowledge about trading .This is the reason people are
having their d-mat accounts but they dont trade .Unsatisfactory services provided by the
firms also creates problems to the clients.

Demat Account

3. Awareness about the products and services offered by ICICI Securities Ltd.

Table 3: Awareness of products and services offered by ICICI Securities Ltd.

Options
Yes
No
Total

% of Responses
40%
60%
100

60%
50%
40%
30%
20%
10%
0%
Yes

No

Fig 3: Graph showing awareness about the products and services offered by ICICI Securities
Ltd.
Interpretation:
Although ICICI is a big brand people are not aware about all the services provided by ICICI
Securities Ltd. The company should concentrate towards promotional tools and focus on
product awareness rather than brand awareness.

Demat Account

4. Reason for opening the Demat account

Table 4: Table showing reasons for opening demat account

Options
Someone suggested
Have an interest in trading
Total

% Of responses
60
40
100

60%
50%
40%
30%
20%
10%
0%
Someone suggested

Have an interest in trading

Fig4: Graph showing the reasons for opening demat account

Interpretation:
It was observed that most of the people have opened their accounts on someones suggestion
and there are only few people who actually have interest in trading and actually trades .Most
of the clients were inactive.

Demat Account

5. Investment in share market by people.

Table5: Table showing percentage of investment in share market by people

Options
Yes
No
Total

% of Responses
35%
65%
100

70%
60%
50%
40%
30%
20%
10%
0%
Yes

No

Fig5: Graph showing percentage of people investing in share market

Interpretation:
Most of the people do not invest in share market and the reasons are lack of proper
knowledge and they think that it is more risky.

Demat Account

6. Frequency of trading

Table 6: Table showing frequency of trading

Options
Weekly
Monthly
Yearly
Total

% of Responses
7%
23%
70%
100

70%
60%
50%
40%
30%
20%
10%
0%
Weekly

Monthly

Yearly

Fig6. Graph showing frequency of trading

Interpretation:
Among the people who invest in share market very few are there who do regular investments
and most of them do it very often.

Demat Account

7. Broking firm with which investment is done

Table7: Table showing Broking firm with which investment is done

Options
ICICI Securities Ltd.
India Info line
Angel Broking
Others
Total

%of Responses
25%
18%
12%
45%
100

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
ICICI Securities Ltd. India Info Line

Angel Broking

Fig7: Graph showing Broking firm with which investment is done.

Interpretation:
Many people are associated with Reliance Securities Ltd.

Others

Demat Account

8. Satisfaction with the Broking firm

Table8:Table showing satisfaction with the broking firm

Options
Satisfied
Not satisfied
Neither satisfied nor dissatisfied
Total

% Of Responses
45%
30%
25%
100

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

Fig8: Graph showing satisfaction with the broking firm

Interpretation:
Some people were satisfied and some were not satisfied by the services provided by the
broking firms and wanted improvements in the services so that they can trade easily.

Demat Account

9. Perception regarding ICICI Securities Ltd.

Table9: Table showing perception regarding Reliance Securities Ltd.

Options
Good
Average
Bad
Total

% Of Responses
65%
25%
10%
100

70%
60%
50%
40%
30%
20%
10%
0%
Good

Average

Bad

Fig9: Graph showing perception regarding Reliance Securities Ltd.

Interpretation:
Except a few most of the people have good image about the company .The people not having
good image had problems regarding services.

Demat Account

10. Improvements required by ICICI Securities Ltd.

Table10: Table showing improvements required by ICICI Securities Ltd
Options
Customer service
Products
Technical improvement
Relationship managers support
Total

% Of Responses
40%
25%
20%
15%
100

40%
35%
30%
25%
20%
15%
10%
5%
0%

Fig10: Graph showing improvements required by ICICI Securities Ltd.

Interpretation:
ICICI securities need to improve their services so that more and more people invest through
them .Many of the clients had the problems related to services.

Demat Account

FINDINGS AND CONCLUSION

ICICI Securities Ltd. Have a good image among the people of Navi Mumbai city and most of
the people are having their trading accounts with ICICI Securities Ltd. The services provided
by the firm are also satisfactory. The firm should focus on the people who are not trading
inspite of having the accounts and they should provide full knowledge to their customers and
the customers who are having issues related to services ,the services should be improved and
their queries should be handled efficiently .At last all can be concluded that ICICI Securities
Ltd. Is still a growing industry and it provides a security to the people having account with
them by the special use of key

Most of the traders find lack of knowledge and unsatisfactory services of

broking firm as biggest problem in trading.

Most of traders perceive ICICI Securities Ltd. as a good broking firm.
The clients of Reliance Securities Ltd suggested that it should improve more in
Customer services need an up gradation.
People are aware about Reliance but not totally aware about the product and services

offered by it.
Due to more use of technology, more people are aware about online trading.

Demat Account

SUGGESTIONS AND RECOMMENDATIONS

While interacting with the people I found that most of the customers do not invest after
opening their demat account .They are not aware about investing in securities market. So
some suggestions are:

The brand image of ICICI Securities is good in market but according to customers the

company should focus on providing better services.

They should focus on print and electronic media advertisement to make people more

about them.
They should provide proper guidance to their customers about demat.
They should provide offers and facilities to their customers to increase their

attractiveness about demat.

Only demat accounts of those people should be opened who are really interested in

trading.
ICICI Securities Ltd. should conduct some kind of mock classes for new
Investors who even dont know about share market.
Refrences:

http://content.icicidirect.com/newsitecontent/Home/Home.asp
http://www.angelbroking.com/
http://en.wikipedia.org/wiki/Demat_account
http://www.scribd.com/doc/13020048/Depository-System

ANNEXURE

Demat Account

Personal Details
1. Name of the Respondent .
2. Occupation

Thank you for your cooperation.

QUESTIONNAIRE
Q1.Are you aware about online trading ?
a) Yes
b) No
Q2.What problems are related to trading?
a) Lack of knowledge
b) Unsatisfactory services
c) Brokerage charges
Q3.Are you aware about the products and services offered by ICICI Securities Ltd.?
a) Yes
b) No
Q4.Why you opened the De-mat account?
a) Someone suggested
b) Have an interest in trading
Q5.Do you invest in share market?
a)Yes
b) No
Q6.How frequently you trade?
a) Weekly
b) Monthly
c) Yearly
Q7.Which Broking firm you investment?
a) ICICI Securities Ltd.
b) India Info line
c) Angel Broking Ltd.
Q8. Satisfaction with the Broking firm
a) Satisfied
b) Dissatisfied
c) Neither satisfied nor dissatisfied

Demat Account

Q9.What is the perception regarding ICICI Securities Ltd.?

a) Good
b) Average
c) Bad
Q10.What improvements are required by ICICI Securities Ltd.?
a) Customer service
b) Products
c) Technical improvement
d) Relationship managers support

Demat Account

1. What is a demat account and why it is required?

Shares and securities are held in dematerialized form in demat account. It is
mandatory to have a demat account to carry out a transaction in stock exchange.
Once an account is opened, you can buy shares by visiting a broker personally or
online.
2. How to open a demat account?
To open a demat account, you need to get in touch with a registered depository
participant (DP). It is just like a bank or broker. You can get a list of registered
DPs from NSDL or CDSL websites, then download or collect an account opening
form from the registered DPs office or website. It usually takes a week or two to
open your account. It is important to add nominee while applying for demat
account. You can open a demat account with banks. However, banks have an
option of opening an account with any branch while some have a set of selected
branches.
3. Are there any charges levied on demat account?
Account opening charges vary from bank to bank. Some private banks such as
HDFC Bank and Axis Bank do not charge account opening fee while others may
charge. The fees are also refundable. Other types of fee charged are annual
maintenance fee, custodian fee and transaction fee.
4. What is depository?
A depository is an organization which holds securities like shares, debentures,
bonds, government securities, mutual fund units etc. of investors in an electronic
form. The securities are held at the request of the investors through a registered
Depository Participant. The depository also provides services related to
transactions in securities.
5. What is dematerialization?
Dematerialization is the process by which physical certificates of an investor are
converted to an equivalent number of securities in an electronic form and are
credited into the beneficiarys account with his DP.
6. Can multiple demat accounts be opened?
Yes, you can open more than one account at the same name either with same or
different Depository Participants (DP). An investor has to fill the KYC form every
time he opens a new account. The KYC norms include Proof of Identity, Proof of
Address requirements as stipulated by SEBI and PAN number. The investor has to
show the original PAN card at the time of opening of demat account.

7. What is rematerialisation?

Demat Account

The process to convert shares back to the physical holding is called as

rematerialisation. He needs to fill remat request form (RRF) and request his DP to
rematerialize the shares in his account.
8. Can an investor operate a joint account?
No, an investor cannot operate a joint account on either or survivor basis like a
normal bank account. But if the beneficial owner authorises any person to operate
his account by executing a power of attorney and submitting it to the DP, that
person can operate the account on behalf of the beneficial owner.
9. Is there any rule to keep minimum balance of securities in demat account?
No, there is no such rule to keep any minimum balance in demat account
10. Who is the registered depository in India?
Depository registered with SEBI are called as registered depository and currently
there are two registered depositories - National Securities Depository Ltd (NSDL)
and Central Depository Services Ltd (CDSL).
11. What are the benefits of dematerializing securities?
There are various benefits of dematerializing securities such as a) It is a
convenient and safe to hold securities in demat form b) Smooth and immediate
transfer of securities c) You dont need to pay any stamp duty on transfer of
securities d) Minimizes your paper work e) Elimination of risks associated with
physical certificates such as bad delivery, fake securities, delays, thefts etc. f)
There is no odd lot problem (you can even trade single share) g) Reduction in
transaction cost
12. What are the KYC norms to open a demat account?
KYC (Know Your Customer) is a customer identification process, which is done
to prevent any criminal activity. SEBI has made it mandatory to fulfill the KYC
norms in order to open a demat account. These norms include a) Proof of identity:
PAN card with photograph, voter id card, passport, Aadhar card b) Proof of
address: This includes your ration card/ passport/bank account statement, driving
license, utility bills like electricity bill, telephone bill. (PAN card is compulsory)
c) You need to give your bank account number to open a DP account.