CH-1

INTRODUCTION TO DEMAT ACCOUNT

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 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
1

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.

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
Dematerialisation. 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 dematerialised 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 2007.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.

CH-2
ACCOUNT OPENING AND DEMAT PROCESS
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.
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 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.

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 to the DP.However, shares held jointly by X &
Y cannot be dematerialised in an account opened in the name of only X or only
Y or any

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)
2. Residence landline telephone bill (not more than 2 months old)
3. Leave & license agreement/agreement to sell (duly attested)
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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
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 alonwith proofs
Bank account details
7

In case of joint holdings

In case of joint holdings, POI and POA documents alongwith 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 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.
(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 & DPclient 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 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.

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PREREQUISTIES FOR DEMATERIALISATION REQUEST

1. The registered holder of the securities should make the request.
2. Securities to be dematerialised must be recognised 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 of that company/issuer are recognized
to be "available for dematerialisation".
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.
3The 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.

11

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.
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.
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 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 non-operational 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.
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 mis-use 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

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

must

be

recognised

by

Depository

Client submits DRF & physical certificates to DP. DP checks

as

eligible.

securities.

3. Client defaces certificates and DP punches two holes on name of company.

4. DP enters demat request in system for Depository.
5. DP dispatches certificates along with DRF to R&T.
6. Depository records the details and sends to R&T.
7. R&T agent verifies the details and confirms to Depository.
8. Depository credits the demat securities to BO a/c of client and intimates DP
electronically.
9. DP issues statement to client.
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.

14

CH-3
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

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 net
worth 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.

CENTRAL DEPOSITORY SERVICES (INDIA) LIMITED

(CDSL)
15

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.
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
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
16

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 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.
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

17

 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.
'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
18

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.
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.

19

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.
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.

20

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)

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.
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
21

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
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.

22

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.

9.

Please note that if physical shares are subsequently converted into electronic
form, any nomination already filed will cease to have effect; the nomination
details furnished to the Depository Participant will prevail thereafter

23

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:
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.
24

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:
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.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
25

CH-4
ONLINE TRADING
Change

is

the

law

of

nature. There

were

times

when

man

was

Wanderer or a normal. He himself had to go place to place in search of food, water and
now everything is available at your doorstep just at the click of the mouse. The growth
of information technology has affected almost all sectors of

life.

Internet

has

enabled us to get every information at our doorstep.

When Internet has affected all sectors he could stock markets the most important
player of the economy, has remained far behind? Like all other sectors Internet has
set its feet in the stock markets also. The Stock Market system provides single, nation
wide securities. It enables LAN investors in one part of the country to trade at the best
quotes with an investor located in any other part of the country through the members of
the stock exchange and subsequently clears and settle the trade in an efficient and cost
effective manner. The primary objective of the Stock Market is to provide clear
opportunity to the investors throughout the country to trade any security irrespective of
the size of the order or the broker through whom the order is routed. This provides the
facility to execute the buy order at the lowest price in the stock market located
anywhere in the country without any extra cost to the investors.There will be no
trading floor in the exchange. Instead, each trading member will have a computer at his
own office anywhere in India which will be connected to the central computer system
at the NSE through leased line or VSATs (very small aperture terminals), for an interim
transition period of 6 months & subsequently by satellite link. VSATs are relatively
smaller dishes similar to dish antenna for cable TV & have the benefit of not being
very expensive. A satellite network makes it possible to connect almost all the parts of
the nation quickly as it is easy to install, as against the ground lines such as dial up
modems leased lines, which are prone to disruptions, satellite links, on the other hands
ensure high speed, availability and quality of the connection. This mode of trading is
known as "Online Trading"
26

Online trading by NSE & BSE:

The central computer located at the Exchange is connected to the workstations of the
Brokers through satellite using Very Small Aperture Terminals (VSATs). Orders placed
at based on price and time priority. Both the exchanges have switched over from the
open outcry trading system to a fully automated computerized mode of trading known
as BOLT (BSE On Line Trading) and NEAT
Trading)

System.

It

facilitates

more

(National

Exchange Automated

efficient processing, automatic order

matching, faster execution of trades and transparency. The scrips traded on the BSE
have been classified into 'A', 'B1', 'B2', 'C', 'F' and 'Z' groups.
The 'A' group shares represent those, which are in the carry forward system (Badla).
The
'F' group represents the debt market (fixed income securities) segment. The 'Z' group
scrips are the blacklisted companies. The 'C' group covers the odd lot securities in 'A',
'B1' & 'B2' groups and Rights renunciations. key regulator governing Stock Exchanges,
Brokers, Depositories, Depository participants, Mutual Funds, FIIs and other
participants
in Indian secondary and primary market is the Securities and Exchange Board of India
(SEBI) Ltd.

27

MECHANICS OF ONLINE TRADING

CLIENT

Places an
order the net
of the
Brokers
website
through the
distinctive Id
code

The settlement of
the deal (buy/sell
order) gets
reflected in his
Demat account.

BROKER

STOCK EXCHANGE

Accepts the
order, Checks
the clients
Identity and
Places the
Order

Accepts the order

after checking the
scrip limit of the
broker for the day

Pays the
Exchange
through his
owns account
and receives it
from the client
account.

Receives the
money and
completes the
settlement

The client is
intimated about
the execution of
the deal by e-mail.

28

CH-5
INTRODUCTION TO UNICON COMPANY
Unicon has been founded with the aim of providing world class investing experience to
hitherto underserved investor community. The technology today has made it possible to
reach out to the last person in the financial market and give him the same level of
service which was available to only the selected few. Unicon gives personalized
premium service with reasonable commission on the NSE, BSE & DERVATIVES
market through their equity broking arm Unicon Securities private ltd. and
commodities on NCDEX and MCX through their Unicon Commodities Pvt Ltd. With
their sophisticated technology we can trade through our own computer and if we want
human touch we can also deal through our relationships managers out of more than
100 branches.Unicon also give personalized services on insurance (Life and General)
&Investments ( Mutual funds & IPOS ) needs through their Insurance & Investment
distribution arm Unicon Insurance Advisors Pvt. Ltd. Their tailormade customized
solutions are perfect match to different financial objectives. Their distribution network
is backed by in house back office support to serve their customers promptly

MISSION AND VISION OF UNICON INVESTMENT SOLUTIONS

MISSION:
To create long term value by empowering individual investors through superior
financial services supported by culture based on highest level of team work, efficiency
and integrity

VISION:
To provide the most useful and ethical investment solutions guided by values driven
approach to growth, client service and development

29

PRODUCT & SERVICES OFFERED BY UNICON

Unicon deals with a numbers of products & services:
Equity
Commodity
Depository
Privileged Client Group
Properties
Equity
Unicon offers a unique feature of a single Screen Trading Platform of NSE, BSE &
Derivatives. Unicon offers both Offline & Online trading platforms. You can Walk in
or place your orders through telephone at any of our branch locations
Online Trading Products:
Unicon plus
Unicon Swift

Unicon Plus
Browser based trading terminal that can be accessed by a unique ID and password.
This facility is available to all our online customers the moment they get registered
with us.
Unicon Swift
Application based terminal for active traders. It provides better speed, greater
analytical features & priority access to Relationship Managers.
Commodity
Unicon offers a unique feature of a single screen trading platform in MCX and
NCDEX.Unicon offers both Offline & Online trading platforms. You can Walk in or

30

place your orders through telephone at any of our branch location Online commodity
internet trading platform through uniflex.
Live Market Watch for commodity market (NCDEX, MCX) in one screen
Add any number of scrips in the Market Watch
Tick by tick live updation of Intraday chart
Greater exposure for trading on the margin available
Common window for market watch and order execution
Key board driven short cuts for punching orders quicklyon
Real time updation of exposure and portfolio
Facility to customize any number of portfolios & watchlists.
Depository
Unicon depositories services offers dematerialization services as a participant in
Central Depositry Services Limited (CDSL) through its depository operations. The
company believes in efficient and cost-effective and integrated service support to its
brokerage business. Unicon Securities Private Limited, as a depository participant, will
offer depository accounts for individual investors as well as corporates which will
enable them to transact in the dematerialized segment, without any hassles. Depository
offers a safe, convenient way to hold securities as compared to holding securities in
paper form. Our service provides an integrated single platform for all our clients
ensuring a risk free, efficient and prompt depository process.
Facilities Offered by Unicon
* De-materialization:
You can submit your physical shares at the Unicon branch for dematerialization into
electronic form.
* Re-materialization:
You can also request for Re-materialization which enables you to convert the
dematerialized shares into physical form.
31

* Transfer:
Inter and intra depository services are available through which you can transfer shares.
IPO:
You can apply for IPO using your demat account details and on allotment the securities
are transferred directly to your demat account.
* Corporate Actions:
While holding your stock in demat account, in case you are eligible for any bonus and
rights issues the allotment would be transferred to your demat account.
* Easi:
You can view your demat account over the Internet and avail a host of services. This
facility empowers our clients to view, download
Priveleged client group
We provide customer focused transparent investment planning and solutions. We offer
products which benefit your special status. PCG has a specialized advisory team which
nurtures all your investment. We ensure that your investments work for you rather than
you for them.
Products offered by unicon
Unicon Signature Account
Nifty Tracker
Unicon Trade Plus
Stastical Arbitrage
Unicon Wealth Planner
Properties
32

Unicon is a specialized property broking company. Our highly experienced and

professional teams present retail, office, industrial and residential property
opportunities to a broad base of clients. Whether it is a residential or commercial
development, Unicon offers a total solution to our clients inclusive of market research,
marketing strategy, interaction with the professional teams and sales or leasing of the
property.
Unicons professional team of consultants will assist you to identify suitable premises
that satisfy your requirements. We will help you negotiate favorable leases and assist
with the preparation of all documentation.Whether you are looking for a home or a
place to conduct business Unicon shall find you one
Distribution
Unicon is fast emerging as a leader in the Insurance and Mutual Funds distribution
space. Unicon has over 100 branches and a huge number of Business Development
Executives who help to source and service the customers throughout the country.
Unicon is fast becoming the preferred Vendor Independent distribution houses
because of providing efficient service like free pick-up of collection of cheques/DDs,
Keeping track of the premiums etc to its customers.
Unicon offers the following distribution products: IPO's
Mutual Funds
Insurance
IPO
At Unicon you can invest in the Primary markets (Initial Public Offerings) online
without going through the hassles of filling up any IPO application forms or any other
paperwork.We shall make sure that you do not miss the opportunity to subscribe/invest
in a good IPO issue by providing you an online IPO

33

application form, transfer of funds online through secured payment Gateways of

leading banks like ICICI, HDFC, AXIS bank.
In addition to the above we shall provide you with the In-Depth analysis of the IPO
issues which shall be hitting the Indian Markets in near future, IPO Calendar, analysis
on the recent IPO listings, prospectus, offer documents and other IPO research reports
so as to help you take an informed decision to invest in the IPO issues.
Online IPO facility is open to all our registered clients at no cost whatsoever. All you
need is the following to subscribe online to the IPO issues
A trading account with Unicon
A Demat account with Unicon
An access to the net banking facility with the Banks through which Unicon has
operational Gateway facility (ICICI, HDFC and AXIS Bank).
You must have signed a Power of Attorney (POA) agreement for applying in
IPOs online

34

Mutual Funds
Unicon Provides expert advice to its clients for their investments in equity & debt
markets through Mutual Funds. Our experts advice you the best investment solutions
that suit you and help you to reach your financial goals.We help you ascertain your risk
profile & guide you with the right product mix which reduce your tax liability increase
your savings & enhance your wealth. Weather you have a conservative, medium or
aggressive investment risk appetite, our experts would guide you to build a portfolio to
optimize the return of interest.
Classification of Mutual Funds
By structure
1. Open-ended Scheme
2. Close-ended Scheme
3. Interval Schemes
By Investment objective
1. Growth Schemes
2. Income Schemes
3. Balanced Schemes
4. Money market Schemes
By Other Schemes
1. Tax saving schemes
2. Special schemes
3. Index Schemes

35

Insurance
General Insurance
Unicon offers all products of General Insurance under one umbrella. Unicon comprises
of a team of distinguished professionals from insurance, finance and other management
disciplines who have vast business & managerial experience.
Unicon team evaluates the client's business environment and studies the risk profile
based on the results of these evaluations, Unicon team then suggests the most cost
effective , integrated insurance package that is perfectly suited to the client's risk
profile. Unicon has a nationwide network of branches all over India, equipped with top
quality infrastructure facilities, to provide you prompt & efficient service.
Life Insurance
Unicon offers you a Peace of Mind by offering various life insurance plans for your
unique & specific needs. Our philosophy is that for every financial problem, there is a
solution also. And we are here to give you complete financial solutions. At the same
time we offer you very Prompt & Reliable Policy related service for enduring
relationship. We offer a very wide range of products to fulfill your particular
requirements. You can always have an access to our 83 Branch Offices situated at
prime locations of the city, or you can call our Relationship Manager to guide on your
Investments.
Following is the glimpse of Life Insurance Plans
Protection Plans
Investment Plans
Child Plans
Retirement/Pension Plans
Saving Plans
NRI Plans
Health Plans
36

37

NRI SERVICES
With India becoming the epicentre of growth the Global Indian feels the need to be
connected to the domestic growth story.
Unicon now offers a convenient and hassle-free way of Investing in the Indian
Securities Market to the people who are living outside India and wish to participate in
the Indian Growth story.
Procedure for NRI operations in Indian Capital Markets
The NRI can deal with only one bank at any point of time
The NRI He is allowed to invest only 5% of the paid up capital of a company.
The aggregate paid up value of equity of any company purchased by all NRI's
and OCBs cannot exceed 10 percent of the paid up capital of the company and in
the case of convertible debentures, the aggregate paid up value of each series of
debentures purchased by all NRI's and OCBs cannot exceed 10 % of the paid up
value of each series of convertible debentures.
He can enter only into delivery based trades; all deliveries must only be routed
through beneficiary accounts and not directly through the broker.
Shares bought by him cannot be sold unless the payout of the same is received
from exchange.
All purchase and sale transactions have to be reported to the RBI by the
designated bank
Original brokers contract notes have to be submitted to the designated Bank
branch, within 24 hours of the transaction.
He will be required to make bill to bill payments/ settlements. No adjustments of
purchase against sale consideration should be done
Shares cannot be bought against the shares sold in the same settlement
All Purchase and Sales will be dealt separately for payments / receipt
38

 Sale proceeds of any transaction not reported/approved by the RBI is allowed to

be credited to the NRE/NRO savings/demat account. The transaction will have
to be reversed in the account and losses if any will be borne by the client.
All tax liabilities arising out of buying and selling of securities will be handled
by the designated bank
Back Office
Unicon through its online back-office aims to increase the transparency and provides
you the link to view the details of your account online anytime and anywhere.Here you
have the advantage of viewing the following reports online
Sauda Details
Financial Ledger
Net position for the day
Net position Detail (for the complete financial year)
E-Contract Note

39

SWOT ANALYSIS
Strengths
Very Strong Brand Image.
Low Charges with respect of its Services.
Free annual maintenance of Demat account.
Facility to trade in office.
Very Good Customer Care Unit.
Weaknesses
Only One branch in Varanasi City.
Weak Advertisement Policies.
Trading on BSE stocks is not available
Commodity trading is not available in Branch
Opportunities
Large Untapped Market.
Opportunity to educate investors about their products & inspire them to invest
more & encourage others.
Good Opportunity to Cash its Brand Image and People Trust.
Threats
Presence of very strong competitors Like, Karvy, Angel Broking, Share khan,
Religare etc.
Aggressive marketing by competitors.
Low brokerage offerings by competitors.

40

CH-6
DEPOSITORY SYSTEM IN INDIA:
The Indian capital market witnessed an explosive growth between mid Eighties and
mid Nineties. The total number of companies listed in the stock exchanges had grown
by 72.3% from 2729 in 4702 in 1995. The market capitalization of the companies
listed with stock exchanges had gone up from Rs.21, 000 crores in 1985 to more than
Rs.4, 50,000 crores in 1995.The secondary market trading activity also gathered
momentum. There has been tremendous growth in secondary market trading at BSE
and NSE. Other regional exchanges like Calcutta, New Delhi have also become active
players in the market. This sudden growth had exposed the limitations of the system.
The system used was not able to withstand the strain caused by the tremendous growth
in the securities market.
The entire securities market started experiencing a gridlock, posing obstacles in its
growth. Moreover, this sudden growth has also magnified the risks that have always
been plaguing the Indian system, viz., credit risk and systematic risk. International
institutional investors wanting to invest in India had become apprehensive about the
reliability of the trade settlement mechanisms used in the country, which did not match
international standards.
Besides affecting the inflow of foreign capital, the lack of efficient settlement systems
had affected all those operating in the stock market, be it institutional investors,
individual investors or brokers. They suffered due to lost trading days (liquidity), lost
scrips improperly paid dividends, mistaken registration, unnecessary financing cost,
inappropriate risk like failure of counter party and fraud.
Era of Scripless and Paperless trading:
To sort out the above mentioned problems and to restore the investors confidence in
the stock market the depository system was set up. It was against this background that
41

the Government of India enacted the Depositories Act in 1996, which an era of scrip
less trading and settlement, efficient market infrastructure, investor protection, reduced
risks and transparency of transaction in the securities market.
Depository Act, 1996:
The concept of Depository is known to the world since 1949 when the first depository
was set up in Germany. There were 112 depositories in operation by the year 2001.
Every depository operates under a countrys specific law and regulation in order to
ensure safety, liquidity, rights and liabilities to the security holders.
Depository:
A depository is an organization where the securities of an investor are held in
electronic form. A depository can be compared to a bank. To avail of the services of a
depository, an investor has to open an account with the depository through a depository
participant, just as he opens an account with the bank. Holding shares in the account is
a kin to holding money in the bankAt present, India has only two depositories-National
Securities Depository Ltd. (NSDL) and Central Depository Services Ltd
(CDSL).NSDL is the first depository in the county, which is promoted by three major
financial institutions - Unit Trust of India, Industrial development Bank of India and
National Stock Exchange of India Limited. The second depository of the country
(CSDL) is set up in 1999 by the Bombay Stock Exchange and Bank of India
However, most of the services offered by both these depositories are similar. Today
almost all the companies listed in dematerialized from with NSDL are available with
CDSL.
Depository participant:
A depository participant is an agent appointed by the depository and is authorized to
offer depository services to all investors. An investor cannot directly open a Demat
account with the depository. An investor has to open his account through a DP only.
42

The DP in turn opens the account with the depository. The DP in turn takes up the
responsibility of maintaining the account and updating them as per the instructions
given by the investor from time to time. The DP generates and provides the holdings
statement from time to time as required by the investor. Thus, the DP is basically the
interface between the investor and the depository.
The person who holds a Demat account is a beneficiary owner. In case of a joint
account, the account holders will be beneficiary holders of that joint account. The
Demat account number of the beneficiary holder(s) is known as the BO Id. A DP id is
the number of the depository participant allotted by the depository.
Functions of Depository:
In the depository system, securities are held in depository accounts, which is more or
less similar to holding funds in bank account.
Transfer of ownership of securities is done through simple account transfers. This
method does away with all the risks and hassles normally associated with paperwork.
Consequently, the cost of transacting in a depository environment is considerably
lower as compared to transacting in certificates. The depository system also allows
distribution of dividends through the RBIs ECS system, whenever the participating
company has agreed to such services. Other entitlements such as bonuses, split-ups are
also directly effected by the depository into the investors account. The following can
be held in the depository (electronic) form:
Shares (listed or unlisted) ,Stocks ,Bonds ,Debentures ,RBI Relief Bonds ,Government
Securities (through a primary Dealer) ,Units of Mutual Funds ,Commercial Paper
,Money Market Instruments etc.

43

CH-7
Analysiation
1. Are People aware of stock market?
(a) Yes

(b) No

Awre of Stock Market

40%

Yes
60%

Explanation:From The above pie graph,

60% of Respondent are aware of Stock Market.
40% of Respondent are not aware of Stock Market.

44

No

2. Do People deal in share?

(a) Yes

(b) No

Deal In Share Market

Yes
40%

No
60%

Explanation:From The above pie graph,

60% of Respondent are dealing in Stock Market.
40% of Respondent are not dealing in Stock Market.

45

3. Are People aware of DEMAT?

(a) Yes

(b) No

Aware of Demat Account

Yes

40%

No
60%

Explanation:From The above pie graph,

60% of Respondent are aware of Demat Account.
40% of Respondent are not aware of Demat Account.

46

4. Are People aware of REMAT?

(a) Yes

(b) No

Aware of Remat Account

30%

Yes
No

70%

Explanation:From The above pie graph,

70% of Respondent are aware of Remat Account.
30% of Respondent are not aware of Remat Account.

47

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

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

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

Long TermTransaction in Stock Market

25%

30%

Less than 1 year

1 Year
2 Year

25%

More than 5 Year

20%

Explanation:From The above pie graph,

30% of Respondent are been transacting from less than 1 year.
20% of Respondent are been transacting from 1 year.
25% of Respondent are been transacting from 2 years.
25% of Respondent are been transacting from more than 5 years.

48

6. Do Peoples trade frequently or occasionally?

(a) Frequently

(b) Occasionally

Trade Frequently Or Occasionally

30%
Frequently
Occasionally
70%

Explanation:From The above pie graph,

70% of Respondent Trade Frequently.
30% of Respondent Trade Occasionally.

49

7. In which securities does People trade frequently?

(a) Equity

(b) Bonds

(c) Debentures

(d) Futures & Options

(e) All

Securtities of Trade

Equity
30%

30%

Bonds
All
Debentures
Future & Options

10%
10%

20%

Explanation:From The above pie graph,

30% of Respondent Frequently Trading Equity Share.
20% of Respondent Frequently Trading in Bonds.
10% of Respondent Frequently Trading from all of above.
10% of Respondent Frequently Trading in Debentures.
30% of Respondents Frequently Trading in Future & Options.

50

8. Which type of script People have?

(a) Physical

(b) Dematerialized

Types of Script

Physical

40%

Dematerialized
60%

Explanation:From The above pie graph,

60% of Respondent having Physical Script.
40% of Respondent having Dematerialized Script.

51

9. Why People have not dematerialized their Script?

(a) Lack of awareness

(b) Time constraint

(c) Liability of changes

Dematerialized

20%

Lack of Awarness
Time Constraint
Liablity Changes

20%

60%

Explanation:From The above pie graph,

60% of Respondent dematerialized for Lack of awareness.
40% of Respondent dematerialized for Time of Constraint.
60% of Respondent dematerialized for Liability of Changes.

52

10.Do People like to convert shares electronically?

(a) Yes

(b) No

Converting Shaers Electronically

40%

Yes
60%

Explanation:From The above pie graph,

60% of Respondent is like to Convert Shares Electronically.
40% of Respondent is not to Convert Shares Electronically.

53

No

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

(b) Changes

(c) Convenience

Operating Demat A/c

Service
40%

40%

Changes
Convenience

20%

Explanation:From The above pie graph,

40% of Respondent opens Demat Account on Service Basis.
40% of Respondent opens Demat Account on Changes Basis.
20% of Respondent opens Demat Account on Convenience Basis.

54

12.Are People satisfied with your Demat service provider?

(a) Yes

(b) No

Demat Service Provider

40%

Yes
60%

No

Explanation:From The above pie graph,

60% of Respondent are Satisfied there Demat Service Provider.
40% of Respondent are not Satisfied there Demat Service Provider.

55

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

(b) Other type of problems

(c) Bad transfer of shares

(d) No Problem

Problem Faced

20%

Non Transfer Shares

Other Types
Bad Transfer
50%

No Problem

20%

10%

Explanation:From The above pie graph,

50% of Respondent are Facing Problem of Non Transfer Shares.
10% of Respondent are Facing Other Types of Problems.
20% of Respondent are Facing Bad Transfer Problems.
20% of Respondent are not Facing any Problem.

56

CH-8
SUGGESTIONS
Broking charges should revised to make them more competitive.
More relationship managers should be appointed to increase market share.
Relationship manager's support to the clients should be improved.
Facility to trade on commodity and BSE should be added.
Indiabulls should conduct some kind of mock Classes for new Investors who
even dont know about share market.
There should be employee ID-Card for them so that When they go on it shows
good impression and Identity of employee.
IndiaBulls Organize training Program for their existing clients once or twice in a
year.

57

Conclusion
The Demat account opening is same as bank account, i.e. single or joint accounts
or with nominee. Some amount has to be paid (i.e. 350/- per year+25) for the Demat
account.

For

each

transaction

the

DPs

may

charge

nearly

Rs.30

brokerage/commission is common. The growth rates of Demat account holder in

increasing over years. The Indian system of capital market is a Two Tire System.
Indian government allows holding securities in any form i.e. either in physical
securities or in electronic (Demat) form. The transaction of securities was complex.
The investors rarely utilize the Rematerialisation Request Form. Some of the Investors
are not aware of the services offered by depositories. Most of the respondents trade
through broker pool account. Dematerialization process can be done through online
trading by utilizing computers. The respondents feel that dematerialization provides
enough services and its convenient to use. If the people those who trade dont have
enough knowledge about the facilities or services available, they take assistance from
broker so as to eliminate the risk of loss. So overall the depository is convenient and
safer and majority of people are shifting towards dematerialization as compared to the
past history and study. Investors with more experience have more knowledge of
depository system and its laws but those indulged only few years before have little
knowledge about it.

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BIBLIOGRAPHY
www.Indiabulls.com
www.Investopedia.com
www.powerindiabulls.com
www.bseindia.com
www.nseindia.com
www.moneycontrol.com
www.equitymarket.com
www.demat.com

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