PROJECT REPORT ON DEPOSITORY

SUMMER TRAINING AT LUDHIANA STOCK EXCHANGE (LSE)

STOCK EXCHANGE
A stock market or equity market is a public entity for the trading of company stock (shares) and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.

STOCK EXCHANGES IN INDIA

NSE(NATIONAL STOCK EXCHANGE) BSE(BOMBAY STOCK EXCHANGE)

Index of NSE is NIFTY, it includes top 50 companies Index of BSE is SENSEX , it includes top 30 companies.

OBJECTIVE OF THE STUDY

To study securities market To know difference between NSDL and CDSL To know overall functioning of depository To understand functioning of LSE. To know brokers perception about NSDL and CDSL To know about DEMATERIALIZATION.

LUDHIANA STOCK EXCHANGE

The Ludhiana Stock Exchange Limited was established in 1981, by Sh. S.P. Oswal of Vardhman Group and Sh. B.M. Munjal of Hero Group.
Ludhiana Stock Exchange is one of the leading Regional Stock Exchange.

TOTAL MEMBERS = 295 162 are registered with NSE 121 are registered with BSE
TOTAL LISTED COMPANIES = 330 214- REGIONAL Companies 116 NON REGIONAL Companies

No. of Directors 12

Shareholder Directors 6

Trading Member Directors 3

Public Interest Directors 3

DEPOSITORY

A depository is an organisation which holds securities (like shares, debentures, bonds, government securities, mutual fund units etc.) of investors in electronic form at the request of the investors through a registered Depository Participant. It also provides services related to transactions in securities. A depository can be compared to a bank for shares. Just as a bank holds cash in your account and provides all services related to transactions of cash, a depository holds securities in electronic form and provides all services related to transaction of shares/ debt instruments.

DEPOSITORIES IN INDIA

NSDL (NATIONAL SECURITIES DEPOSITORY LIMITED)

CDSL (CENTRAL DEPOSITORY SERVICES LIMITED)

NSDL
NSDL, the first depository in India, commenced operations on Nov.4, 1996.

Holding and handling of securities in electronic form eliminates problem that are normally associated with physical certificates, like loss in transit, problem of bad delivery etc. further it facilitates faster settlement cycles.

CDSL

A Depository facilitates holding of securities in the electronic form and enables securities transactions to be processed by book entry by a Depository Participant (DP), who as an agent of the depository, offers depository services to investors.

IMPORTANT FUNCTIONS IN DEPOSITORY SYSTEM

Dematerialisation Re-materialisation Initial Public Offer Trading and Settlement

DEMATERIALIZATION
Dematerialization is the process by which a client can get physical certificates converted into electronic form.

REQUIREMENTS FOR OPENING DEMAT A/C

Identification Address Photographs Agreement Nomination form Bank Details PAN Intro by existing a\c holder

DEMAT PROCESS
SHAREHOLDER DP A\C OPENING R&T AGENT

DRF
DEPOSITORY

DEMATERIALIZATION
CREDIT TO THE BENEFICIARY OWNER INVESTORS A/C OF THE

REMATERIALIZATION

Re-materialisation is a process by which a beneficiary can convert the electronic balances in his account into physical share certificate. This entire procedure normally takes 30 days.

REMAT PROCESS

INITIAL PUBLIC OFFER (IPO)

An initial public stock offering (IPO) referred to simply as an "offering" or "flotation," is when a company (called the issuer) issues common stock or shares to the public for the first time .

DATA SOURCES: Primary data Secondary data Primary data: In this study questionnaire and personal interview methods have been used for receiving primary data.

Secondary data: In this study information from various website has been used. Sample Size- 50 Respondents

Ques.: Do you have demat account?

30% Yes No

70%

QUES. :DO you have sufficient knowledge and awareness about NSDL and CDSL?

12 23

YES NO TO SOME EXTENT

15

Ques.: Do you satisfied with the fee structures of Depository Participant?

No. of respondent

18 30

Yes
No Up to some extent

22

QUES: Which one is the most important factor for trading company to enhance loyalty and customer?

Ques: Preferred Portfolio by Investors.

Age Distribution of the Investors of Ludhiana

Age Groups <30 31-35 35-40 41-45

No. of Investors 12 18 30 20

46-50
>50

24
16

Investors No. of 35 30 25 20 15 10 5 0 <= 30 31-35 36-40 41-45 46-50 >50

According to this chart out of 120 Mutual Fund investors of Ludhiana the most are in the age group of 36-40 yrs. i.e. 25%, the second most investors are in the age group of 41-45yrs i.e. 20% and the least investors are in the age group of below 30 yrs.

Ques. : Is there any grievance to parties for NSDL?

NO. OF RESPONDENT
0 30%
YES NO 70%

Ques.: How much time period is given to the parties to resolve their grievances for NSDL?
NO. OF RESPONDENT

6 15

15

30 DAYS 21 DAYS 45 DAYS 25 DAYS

34

FINDINGS

It is found that the most of people know about depository system. It is found that many people know about the demat securities. It is found that many customers dont want hidden charges for trading company. It is found that many investors preferred the equity portfolio.

CONCLUSION

To conclude, it can be said that the research findings clearly reveal the goodwill and reputation of depository system among the customers. But there is a need to strengthen this depository system by spreading awareness about the services offered by NSDL, CSDL and its trading companies through advertisement and by expanding the more branches of this system all over the country and also by tapping the potential customers through innovative means.

THANK YOU