Dematerialization Process

INTRODUCTION
FINANCE:
Finance is the process of conversion of accumulated funds to productive usage. Finance helps to direct the
flow of economic & facilitate in the firm's smooth operations.
According to HOWARD AND OPTIONS Finance is defined as "the administration area of set of
administrative functions in an organization which has to do with the management of flow of cash so that the
organization will have the means 2 carry out its objectives as satisfactory as possible and at the same time meet the
obligations as they become due".
FINANCIAL SYSTEMS:
It is a set of markets to facilitate the exchange of assets, liabilities and risks. Indian financial system comprises
of three parts viz., FINANCIAL INSTITUTIONS or INTERMEDIARIES, FINANCIAL MARKETS, FINANCIAL
INSTRUMENTS. Financial Intermediaries, provide funds by pooling the funds from investors. They are the
commercial banks, mutual funds, insurance companies, provident funds, factors &non banking financial institutions
etc...Financial instruments, through which the firm can raise funds from public or institutions. Some of them
are equity shares, preferential shares, bonds, commercial papers, certificate of deposits etc...
FINANCIAL MARKETS:
Financial markets consist of two parts.
1)

Capital market

2)

Money market
Money market is a market for short-term fund for temporary cash requirements. Capital market is a

market for long-term funds. Capital market has two

Segments.
1)

Primary market (New Issues Market)

2)

Secondary market

The primary market means new market which is deals in new securities, which are not previously offered to the
investors. The primary market does not have any organizational setup and is recognized only by the specialist
institutional services that it renders to the lenders and borrowers of capital funds.
The secondary market deals in old/existing securities, which were granted in stock exchange listing. Stock
exchanges provide liquidity to investments. It has a physical existence and a geographical area.

STATEMENT OF PROBLEM

OBJECTIVES OF THE PROJECT:

To know the mechanism in the Demat

To know the advantage of Dematerialization

To study the actual process of DEMATE

To study the actual process held by stock exchange /any appropriate institution

To study the process of Settlement

To know the advantages of the DEMAT

To know the services provided by the Depository Participant

To study the activities in primary market and secondary market

SCOPE OF THE STUDY:

The scope of the study is confined to the process of dematerialization of securities and its advantages.
The scope of the project is limited to the depository participant services through depositors.

METHODOLOGY OF THE STUDY:

The study is based on both the primary and the secondary sources of data.
The source of primary data is from the unstructured interview of the officials in the company.
The secondary data is collected from the websites:

www.nseindia.com

www.moneycontrol.com

Companies law by munish Bhandari

www.caclubindia.com

Securities Laws and Compliances (Cs Executive ICSI)

FINDING AND CONCLUTION :

LIMITATIONS OF THE PROJECT:

The study is limited to only depository participants services through Depositories

By

not

considering

the

entire

depository

participant's

implications

elating to the pattern of trading may have been missed in the study.

NSDL.
trade

Exhaustive
and

SEBI

analysis,
guidelines

problems
of

limited & keep the study in manageable limits

relating

of
there

listing
lot

and
are

not

management
covered

due

of
to

BIO DATA OF GUIDE

NAME

: Mr.Tusharkumar Prajapati

COMPANY NAME

: Ganga Hybrid Seeds Company

Mansa ,Gujarat

CONTACT

: 9725464066

EDUTATION

WORK EXPIRIANCE: Partner of Gandaseeds and also work as a finance manager in Ganga seeds.

he has experience of 3 years in finance field .