Study On Progress and Investor's Perception Towerds Dematerialization of Shares.

EXECUTIVE SUMMARY
The Capital market in our Indian economy is undergoing a process of structural

transformation and one such change is dematerialization. Dematerialization was a major
policy measure introduced by SEBI in 1996 to improve operational efficiency of the
Indian stock markets and it was made compulsory with effect from 15th January 1998.
Dematerialization is a process by which physical certificates of an equivalent number of
securities in electronic form and credited to the investor's account maintained with the
depository participant (DP).
This report focuses the progress of investors accounts and dematerialization of shares in
NSDL and CDSL. Trend percentage and trend line are the spastical tools that have been
used to identify the progress on dematerialization. the investor’s perception towards
dematerialization of shares had been analyzed based on a sample of 100 investors
through structured questionnaire.
“Study on progress and investors perception towards dematerialization of

shares.” is the topic head of the project report.
Financial products are those products which have values in monetary terms. The
Financial products are intangible in nature that means the customer cannot even
touch, smell or feel it. In this manner, it becomes a challenge for the sales personnel
in financial sector to convince the customer to invest in it. The sales personnel can
only guarantee for the benefit that the customer will get after a certain period of time
span.
The evaluation of financial planning has been increased through decades, which is
best seen in customer rise. Now a day’s investment of saving has assumed great
importance. According to the study of the Market, it is being observed that markets
1 | JK Padampat Singhania Institute of Management and Technology

are doing well in investments like, Mutual funds, Shares, Life Insurance etc. In near
future a proper financial planning is required to invest money in all type of financial
product because there is good potential in market to invest.
The main objective of this project is to know the Progress and Consumers perception
towards the Dematerialization of Shares with the people’s awareness and various
instruments available for Personal Financial Advising facility provided by Edelweiss
Broking Ltd.

Dematerialization
Dematerialization is a process by which physical certificates of an investor are converted

into electronic form and credited to the account of the depository participant. Dematted
securities do not have any certificate numbers or distinctive numbers and are dealt only
in quantity, i.e., the securities are replaceable.
Investors can dematerialize only those certificates that are already registered in their
names and are in the list of securities admitted for dematerialization. These are: shares,
scrip’s, stocks, bonds, debentures, stock or other marketable securities of a like nature in
or of any incorporated company or other body corporate, units of mutual funds, rights
under collective investment schemes and venture capital funds, commercial paper,
certificate of deposit, securities debt, money market instruments and unlisted securities,
underlying sharing of American Depository Receipts and Global Depository Receipts

issued to non-resident holders. Dematerialization is the process of converting physical
holdings into electronic form with the depository wherein the share certificates are
shredded and corresponding entry of the number of shares is done in the opened with the
depository.
The securities held in dematerialized form are fungible; that is, they do not bear any
notable feature like distinctive number, folio number or certificate number. Once shares
get dematerialized, they lose their identity in terms of share certificate distinctive
numbers and folio numbers.
Following requisites are necessary for dematerialization of securities:
1. Investors should have a depository account.
2. Securities should be from the eligible list of securities issued by the depository.
3. Securities must be in the name of the account holders and owned by him.
4. Separate demat requisition form is required for each issuer company.
5. Dematerialization Request Form (DRF) should be signed by all the holders so as to

match specimen signature.
Object Of Demat System
India has adopted this system in which book entry is done electronically. It is the system
where no paper is involved. Physical form is extinguished and shares or securities are

held in electronic mode. Before the introduction of the depository system by the
Depository Act, 1996, the process of sale, purchase and transfer of shares was a huge
problem and the safety perspective was zero.
Securities that can be dematerialized
The entire depository system in India is governed by the rules made by the market
regulator - SEBI. According to the SEBI (Depositories and Participants) Regulations,
1996, the following securities are eligible for holding in dematerialized form.
1. Shares, scrips, stocks, bonds, debentures, debenture stock or other marketable

securities of similar nature of any incorporated company or other body corporate,
including underlying shares of ADRs and GDRs.
2. Units of mutual funds, rights under collective investment schemes and venture capital
funds, commercial paper, certificate of deposit, securitized debt, money market
instruments, government securities, national saving certificates, kisan vikas patra and
unlisted securities.
What is a Depository?
The Depositories Act defines a depository as “a company formed and registered under
the Companies Act, 1956 and which has been granted a certificate of registration under
subsection (1A) of section 12 of Securities and Exchange Board of India Act, 1992.” The

main function of a depository is to dematerialize securities and enable their transactions
in book entry form.
As per The Bank for International Settlements (BIS), depository is “a facility for holding
securities which enables securities transactions to be processed by book entry. Physical
securities may be immobilized by the depository or securities may be dematerialized (so
that they exist only as electronic records)”.
In simple terms depository is an organization where securities of an investor are held in

electronic form.
(REF: BSE—BCCD study material v3)
Who is a Depository Participant?
A Depository Participant (DP) is an agent of the depository through which it interfaces

with the investor and provides depository services. Public financial institutions,
scheduled commercial banks, foreign banks operating in India with the approval of the
Reserve Bank of India, state financial corporations, custodians, stock-brokers, clearing
corporations /clearing houses, NBFCs and Registrar to an Issue or Share Transfer Agent
complying with the requirements prescribed by
SEBI can be registered as DP. Banking services can be availed through a branch whereas
depository services can be availed through a DP.
As on September 30, 2008, a total of 711 DPs (266 NSDL, 445 CDSL) are registered
with SEBI.
(REF: http://investor.sebi.gov.in/faq/dematfaq.html)
Number of Depositories in India
At present two Depositories viz.
1) National Securities Depository Limited (NSDL)
NSDL is a public limited company incorporated under the Companies Act, 1956. Four
renowned institutions participate in it. Unit Trust of India (UTI), Industrial Development
Bank of India (IDBI), National Stock Exchange of India (NSE), State Bank of India
(SBI).UTI is the largest mutual fund of India and IDBI is the largest development bank,
NSE is the largest stock exchange of India and SBI is the largest commercial bank of
India having clearing facility. HDFC and Citibank also share in this system. NSDL is
managed by Board of directors headed by a managing director. It is governed by its bye-
laws and its business operations are regulated by business rules. NSDL interfaces with
the investors through players or business partners. Constituents of depository
compromise of clearing corporation, brokers, clearing member, registrar and transfer
agents, company or issuer, stock exchange, bank depository participant and investors. All
are electronically linked to the main depository for the settlement of trades and to
perform a daily reconciliation of all accounts held with NSDL.
2) Central Depository Services (India) Limited (CDSL)
Second agency is CDSL - Central Depository Service (India) Limited. Main functions of
this agency are centralized database and accounting. Major participant in CDSL are LIC,

GIC and BSE. This agency is set up with the object to keep in mind to accelerate growth
of scripless trading, with major thrust of individual participation and creating competitive
environment, responsible to the user’s interests and demands to enhance liquidity. CDSL
aims to retain the entire data of the investors in the central database of CDSL.
NSDL and CDSL essentially perform the following functions through their various
participants
1. Enable surrender and withdrawal of securities to and from the depository.
2. Maintain investor holdings in the electronic form.
3. Effect settlement of securities traded on the Exchanges.
4. Carry out settlement of trades not done on the Stock Exchanges i.e. Off Market
Trades.
5. Coordination of benefits accruing on the depository accounts of investors.
(REF: https://www.ilfsdp.com/faq_general.htm)

Objectives of the Study
1. To Study the progress of Dematerialization of Shares.

2. To identify the investor’s awareness towards dematerialization of Shares
3. To examine the satisfaction level of the investors towards the benefits of
dematerialization of Shares
4. To identify the investor’s opinion towards various charges levied by the
depository participants.
5. To offer suggestions based on the result of the study.

RESEARCH METHODOLOGY:
Research methodology is a systematic way to solve the research problems. It refers to

search for knowledge, a scientific and systematic search for information.
Marketing research is the systematic design, collection, analysis and reporting of data
and finding relevant to a specific marketing design, collection, analysis and reporting of
data and finding relevant to a specific marketing situation facing the company.
RESEARCH DESIGN:
Type of Research:
The research was a Descriptive Research.
Descriptive Research:
Descriptive research is also called Statistical Research. The main goal of this type of
research is to describe the data and characteristics about the population or phenomenon
being studied. The idea behind this type of research is to study frequencies, averages, and
other statistical calculations. Descriptive research is mainly done when a researcher
wants to gain a better understanding of a topic. It is quantitative and uses surveys and
panels and also the use of probability sampling. Descriptive research is the exploration
of the existing certain phenomena. Descriptive research generally precedes explanatory
research.

SAMPLING DESIGN:
Sampling may be defined as the selection of some part of an aggregate or totality on the
basis of which a judgment or inference about the aggregate or totality is made. It is the
process of obtaining information about an entire population by examining only a part of
it
in which generalizations or influences are drawn based on the samples about the
parameters of population from which the samples are taken.
Random Sampling:
Random sampling is the sampling technique I have used in my research.
SAMPLING AREA:
Gurgaon, NCR
SAMPLE SIZE:
100

INDUSTRY OVERVIEW
HISTORY
HISTORY OF THE STOCK BROKING INDUSTRY
Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200
years ago. The earliest records of security dealings in India are meager and obscure.
By 1830's business on corporate stocks and shares in Bank and Cotton presses took place
in Bombay. Though the trading list was broader in 1839, there were only half a dozen

brokers recognized by banks and merchants during 1840 and 1850. The 1850's witnessed
a rapid development of commercial enterprise and brokerage business attracted many
men into the field and by 1860 the number of brokers increased into 60.
In 1860-61 the American Civil War broke out and cotton supply from United States of
Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers
increased to about 200 to 250. However, at the end of the American Civil War, in 1865, a
disastrous slump began (for example, Bank of Bombay Share which had touched Rs
2850 could only be sold at Rs. 87). At the end of the American Civil War, the brokers
who thrived out of Civil War in 1874, found a place in a street (now appropriately called
as Dalal Street) where they would conveniently assemble and transact business.
In 1887, they formally established in Bombay, the "Native Share and Stock Brokers'
Association" (which is alternatively known as "The Stock Exchange"). In 1895, the
Stock Exchange acquired a premise in the same street and it was inaugurated in 1899.
Thus, the Stock Exchange at Bombay was consolidated.
Thus in the same way, gradually with the passage of time number of exchanges were
increased and at currently it reached to the figure of 24 stock exchanges.
DEVELOPMENT
An important early event in the development of the stock market in India was the
formation of the Native Share and Stock Brokers’ Association at Bombay in 1875, the
precursor of the present-day Bombay Stock Exchange. This was followed by the
formation of associations /exchanges in Ahmedabad (1894), Calcutta (1908), and Madras
(1937). IN addition, a large number of ephemeral exchanges emerged mainly in buoyant
periods to recede into oblivion during depressing times subsequently.

In order to check such aberrations and promote a more orderly development of the stock
market, the central government introduced a legislation called the Securities Contracts
(Regulation) Act, 1956. Under this legislation, it is mandatory on the part of stock
exchanges to seek government recognition. As of January 2002 there were 23 stock
exchanges recognized by the central Government. They are located at Ahmedabad,
Bangalore, Baroda, Bhubaneswar, Calcutta, Chennai,(the Madras stock Exchanges ),
Cochin, Coimbatore, Delhi, Guwahati, Hyderabad, Indore, Jaipur, Kanpur, Ludhiana,
Mangalore, Mumbai(the National Stock Exchange or NSE), Mumbai (The Stock
Exchange), popularly called the Bombay Stock Exchange, Mumbai (OTC Exchange of
India), Mumbai (The Inter-connected Stock Exchange of India), Patna, Pune, and Rajkot.
Of course, the principle bourses are the National Stock Exchange and The Bombay Stock
Exchange, accounting for the bulk of the business done on the Indian stock market.
While the recognized stock exchanges have been accorded a privileged position, they are
subject to governmental supervision and control. The rules of a recognized stock
exchanges relating to the managerial powers of the governing body, admission,
suspension, expulsion, and re-admission of its members, appointment of authorized
representatives and clerks, so on and so forth have to be approved by the government.
These rules can be amended, varied or rescinded only with the prior approval of the
government.
 BSE(BOMBAY STOCK EXCHANGE)

The Stock Exchange, Mumbai, popularly known as "BSE" was established in 1875 as
"The Native Share and Stock Brokers Association". It is the oldest one in Asia, even
older than the Tokyo Stock Exchange, which was established in 1878. It is a voluntary
non-profit making Association of Persons (AOP) and is currently engaged in the process
of converting itself into demutualized and corporate entity. It has evolved over the years
into its present status as the premier Stock Exchange in the country. It is the first Stock
Exchange in the Country to have obtained permanent recognition in 1956 from the Govt.
of India under the Securities Contracts (Regulation) Act, 1956.
The Exchange, while providing an efficient and transparent market for trading in
securities, debt and derivatives upholds the interests of the investors and ensures
redressed of their grievances whether against the companies or its own member-brokers.
It also strives to educate and enlighten the investors by conducting investor education
program and making available to them necessary informative inputs.
A Governing Board having 20 directors is the apex body, which decides the policies and
regulates the affairs of the Exchange. The Governing Board consists of 9 elected
directors, who are from the broking community (one third of them retire ever year by
rotation), three SEBI nominees, six public representatives and an Executive Director &
Chief Executive Officer and a Chief Operating Officer.
 NSE(NATIONAL STOCK EXCHANGE)

NSE was incorporated in 1992 and was given recognition as a stock exchange in April
1993. It started operations in June 1994, with trading on the Wholesale Debt Market
Segment. Subsequently it launched the Capital Market Segment in November 1994 as a
trading platform for equities and the Futures and Options Segment in June 2000 for
various derivative instruments.
NSE has been able to take the stock market to the doorsteps of the investors. The
technology has been harnessed to deliver the services to the investors across the country
at the cheapest possible cost. It provides a nation-wide, screen-based, automated trading
system, with a high degree of transparency and equal access to investors irrespective of
geographical location. The high level of information dissemination through on-line
system has helped in integrating retail investors on a nation-wide basis. The standards set
by the exchange in terms of market practices, Products, technology and service standards
have become industry benchmarks and are being replicated by other market participants.
Within a very short span of time, NSE has been able to achieve all the objectives for
which it was set up. It has been playing a leading role as a change agent in transforming
the Indian Capital Markets to its present form. The Indian Capital Markets are a far cry
from what they used to be a decade ago in terms of market practices, infrastructure,
technology, risk management, clearing and settlement and investor service.


 NCDEX (NATIONAL COMMODITIES AND DERIVATIVES

EXCHANGE)
NCDEX started working on 15th December, 2003. This exchange provides facilities to
their trading and clearing member at different 130 centers for contract.
In commodity market the main participants are speculators, hedgers and arbitrageurs.
Promoters of NCDEX are
 National Stock Exchange(NSE)

 ICICI bank
 Life Insurance Corporation(LIC)
 National Bank for Agricultural and Rural Development (NABARD)
 IFFICO
 Punjab National Bank (PNB)
 CRISIL
WHY NCDEX?
 NCDEX is nationalized screen based system which is providing transparent,

private and easy services.
 NCDEX is one of the traditional media which gives online information
 NCDEX is one of the Indian commodity exchange, constructed on the basis of
the current national institutes the exchange has been established with the
coloration of leading institutes like NABARD, LIC, NSI etc….
 In India NCDEX has maximum settlement guarantee fund.
 NCDEX has appointed two exports for checking quality at the time of delivery
FACILITIES PROVIDED BY NCDEX
 NCDEX has developed facility for checking of commodity and also provides a
wear house facility
 By collaborating with industrial partners, industrial companies, news agencies,
banks and developers of kiosk network NCDEX is able to provide current rates
and contracts rate.
 To prepare guidelines related to special products of securitization NCDEX works
with bank.
 To avail farmers from risk of fluctuation in prices NCDEX provides special
services for agricultural.
 NCDEX is working with tax officer to make clear different types of sales and
service taxes.
 NCDEX is providing attractive products like “weather derivatives”

 MCX(MULTI COMMODITY EXCHANGE)
‘MULTI COMMODITY EXCHANGE’ of India limited is a new order exchange with

a mandate for setting up a nationwide, online multi-commodity marketplace, offering
unlimited growth opportunities to commodities market participants. As a true neutral
market, MCX has taken several initiatives for users in a new generation commodities
futures market in the process, become the country’s premier exchange.
MCX, an independent and a de-mutualized exchange since inception, is all set up to

introduce a state of the art, online digital exchange for commodities futures trading in the
country and has accordingly initiated several steps to translate this vision into reality.
Market Watch:
The market watch window is used to view the market details for a particular or group of
contracts and for a particular instrument type. This window displays the following
details: Symbol, Expiry, price quotation unit, buy qty, buy price, sell price, sell qty, last

traded price, D.P.R, volume (in 000’s), value (in lac),% change, average trade price,
high, low, open, close & open interest.
 TRANSACTION CYCLE
Funds
Clearing
Settlement
Decision
Placing
Trade
or of
to
Securities
of
Execution
Trades
Order
trade
trades
Transaction
Cycle
A person holding assets (Securities/Funds), either to meet his liquidity needs or to

reshuffle his holdings in response to changes in his perception about risk and return of
the assets, decides to buy or sell the securities. He selects a broker and instructs him to
place buy/sell order on an exchange. The order is converted to a trade as soon as it finds
a matching sell/buy order. At the end of the trade cycle, the trades are netted to determine
the obligations of the trading member’s securities/funds as per settlement cycle.
Buyer/seller delivers funds/ securities and receives securities/funds and acquires
ownership of the securities.
A securities transaction cycle is presented above. Just because of this Transaction cycle,
the whole business of Securities and Stock Broking has emerged. And as an extension of
stock broking, the business of Online Stock broking/ Online Trading/ E-Broking has
emerged.

MAJOR PLAYERS
1. S S KANTILAL ISHWARLAL SECURITIES PVT LTD. (www.sharekhan.com)

2. ICICI WEB TRADE LTD. (www.icicidirect.com)
3. 5 PAISA.COM (www.5paisa.com)
4. KOTAK SECURITIES LTD. (www.kotakstreet.com)
5. INDIABULLS (www.indiabulls.com)
6. MOTILAL OSWAL SECURITIES LTD.
7. HDFC SECURITIES LTD. (www.hdfcsec.com)
8. UTI SECURITIES LTD.
9. IDBI CAPITAL MARKET SERIVICES LTD.
10. REFCO SIFY SECURITIES PVT LTD.

Parameters A/c Opening Fee Brokerage Interface
Trading Demat Delivery Square Banks Associated

A/c Off with
Edelweiss 750 Nil 0.50 0.10 HDFC,ICICI,AXIS,
YES Bank,
Kotak Mahindra
Sharekhan 750 NIL 0.50 0.10 HDFC, UTI, OBC,
IDBI & Citibank
ICICI Direct 750 NIL 0.75 0.18 ICICI Bank
Indiabulls 750 250 0.40 0.10 N.A.
5 paisa 800 NIL 0.20 0.05 Citibank, HDFC,

OBC, UTI & ICICI
Bank
Kotak Street 500 N.A. 0.59 0.06 Kotak Bank &
Citibank
HDFC Securities 700 NIL 0.50 0.15 HDFC & Other 4
Banks
 S. S. KANTILAL ISHWARLAL SECURITIES PVT. LTD. (sharekhan.com):
Sharekhan, India’s leading stock broker is the retail arm of SSKI, and offers you
depository services and trade execution facilities for equities, derivatives and
commodities backed with investment advice tempered by decades of broking experience.

A research and analysis team is constantly working to track performance and trends.
That’s why Sharekhan has the trading products, which are having one of the highest
success rates in the industry. Sharekhan is having 240 share shops in 110 cities; the
largest chain of retail share shops in India is of Sharekhan.
In future, Sharekhan is planning to enter in Mutual funds, Insurance sector and banking
sector to expand beyond the market currently covered by it. And it has started MF
(Mutual Funds) on priority basis but wants to grow in it.
 ICICI WEB TRADE LTD. (ICICIdirect.com):
ICICIdirect.com was the first entrant into e-broking. ICICdirect.com provides the 3-
in-1 to the users which ties in their saving bank account and their Demat account to their
brokerage account electronically. This integration ensures that money is transferred
to/from their bank account and the shares are transferred from/to their Demat account
automatically without writing any cheques or transfer instructions while carrying out
their trades in shares.
ICICIdirect.com has the option of trading in shares in cash, margin or spot segments. An
investor can also invest in 14 Mutual Funds (Prudential ICICI MF, Franklin Templeton
India MF, Alliance Capital MF, JM MF, Birla Sun Life MF, Sundaram MF, IL&FS MF,
Principal MF, HDFC MF, Standard Chartered MF, Reliance Capital MF, Kotak
Mahindra MF, TATA MF and DSP MERRILL LYNCH MF) through their trading
account.
ICICIdirect.com doesn’t provide the facility of trading in a traditional way.

 5PAISA.COM
5paisa is the trade name of India Infoline Securities Private Limited (5paisa), member of
National Stock Exchange and The Stock Exchange, Mumbai. 5paisa is a wholly owned
subsidiary of India Infoline Ltd, India’s leading and most popular finance and investment
portal. 5paisa has emerged as one of leading players in e-broking space in India.
The company’s brokerage is one of the lowest in the industry. It also provides the
research on commodities. Investors can benefit from its analysis and advice available at
the click of the mouse. For those who prefer to trade the traditional way, India Infoline
investor points are available across the country.
India Infoline was founded by a group of professionals in 1995. Its institutional investors
include Intel Capital, one of the leading technology companies in the world promoted by
the UK government, ICICI, TDA and Reeshanar. The company offers a slew of products
such as stock and derivatives broking, commodities broking and mutual funds.
 KOTAK SECURITIES LIMITED (kotakstreet.com):
Kotak Securities Ltd., a strategic joint venture between Kotak Mahindra Bank and
Goldman Sachs (holding 25% - one of the world’s leading investment banks and
brokerage firms) is India’s leading stock broking house with a market share of 5 - 6 %.
Kotak Securities Ltd. has been the largest in IPO distribution - It was ranked number One
in 2003-04 as Book Running Lead Managers in public equity offerings by PRIME
Database. It has also won the Best Equity House Award from Finance Asia - April 2004.

Kotak Securities Ltd is also a depository participant with National Securities Depository
Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual
benefit services wherein the investors can use the brokerage services of the company for
executing the transactions and the depository services for settling them. The company
has 42 branches servicing around 1, 00,000 customers. Kotakstreet.com the online
division of Kotak Securities Limited offers Internet Broking services and also online IPO
and Mutual Fund Investments.
Kotak Securities Limited manages assets over 1700 crores under Portfolio Management
Services (PMS) which is mainly to the high end of the market. Kotak Securities Limited
has newly launched “Kotak Infinity” as a distinct discretionary Portfolio Management
Service which looks into the middle end of the market.
 INDIA BULLS
Indiabulls is India's leading retail financial services company with 77 locations spread
across 64 cities. Its size and strong balance sheet allows providing varied products and
services at very attractive prices, our over 750 Client Relationship Managers are
dedicated to serving your unique needs.
Indiabulls is lead by a highly regarded management team that has invested crores of
rupees into a world class Infrastructure that provides real-time service & 24/7 access to
all information and products. The Indiabulls Professional Network offers real-time
prices, detailed data and news, intelligent analytics, and electronic trading capabilities,
right at your finger-tips. This powerful technology is complemented by our
knowledgeable and customer focused Relationship Managers.

Indiabulls offers a full range of financial services and products ranging from Equities,
Derivatives, Demat services and Insurance to enhance wealth and to achieve the financial
goals.
 MOTILAL OSWAL SECURITIES LTD. (MOSt):

One of the top-3 stock-broking houses in India, with a dominant position in both
institutional and retail broking, MOSt is amongst the best-capitalized firms in the
broking industry in terms of net worth. MOSt was founded in 1987 as a small sub-
broking unit, with just two people running the show. Focus on customer-first-attitude,
ethical and transparent business practices, respect for professionalism, research-based
value investing and implementation of cutting-edge technology have enabled it to
blossom into a thousand-member team.
The institutional business unit has relationships with several leading foreign institutional
investors (FIIs) in the US, UK, Hong Kong and Singapore. In a recent media report
MOSt was rated as one of the top-10 brokers in terms of business transacted for
FIIs.
The retail business unit provides equity investment solutions to more than 50,000
investors through 270 outlets spanning 150 cities and 22 states. MOSt provides Advice-
Based Broking, Portfolio Management Services (PMS), E-Broking Services,
Depository Services, Commodities Trading, and IPO and Mutual Fund Investment
Advisory Services. Its Value PMS Scheme gave a 160% post-tax return for the year
ended March 2004
In AsiaMoney Brokers Poll 2003 MOSt has been rated as the Best Domestic Research
House- Mega Funds ,while in 2000 and 2002 it has been rated as the Best Domestic

Equity Research House and Second best amongst Indian Brokerage firms
respectively.
 HDFC SECURITIES LTD (HDFCsec):

HDFC securities is a brand brought to you by HDFC Securities Ltd, which has been
promoted by the HDFC Bank & HDFC with the objective of providing the diverse
customer base of the HDFC Group and other investors a capability to transact in the
Stock Exchanges & other financial market transactions. The services comprise online
buying and selling of equity shares on the National Stock Exchange (NSE). Buying and
selling of select corporate debt and government securities on the NSE would be
introduced in a subsequent phase. In a few months, they will also start offering the
following online trading services on the BSE and NSE:
1. Buying and selling of shares on the BSE
2. Arbitrage between NSE & BSE
3. Trading in Derivatives on the NSE
4. Margin trading products.
They are also planning to include buying and selling of Mutual Funds, IPO subscriptions,
Right issues, purchase of Insurance policies and asset financing.
 UTI SECURITIES LTD.: (UTISEL)

UTI Securities Ltd was incorporated on June 24, 1994 by Unit Trust of India as a 100%
subsidiary and on the repealing of the UTI Act, the capital is now held by the
Administrator of the Specified Undertaking of Unit Trust of India (ASUUTI). UTI
Securities has been working as an independent professional entity for providing financial
intermediary and advisory services to its corporate and retail clientele.
The Company has presence in major cities with 20 branches and 50 franchisees to
service a wide range of clients. The company has also invested in the joint-venture
company with Standard Chartered Bank viz. Standard Chartered UTI Securities (P)
Ltd. that is engaged in primary dealership and Government securities. The company is
very soon going to start Commodity Trading through its subsidiary, USEc Commodities
Ltd, which provides facility of commodity trading on NCDEX and MCX.
 IDBI Capital Market Services Ltd.
IDBI Capital is a leading Indian securities firm offering a complete suite of products and
services to individual, institutional and corporate clients.
IDBI Capital Market Services Ltd. (IDBI Capital), a wholly owned subsidiary of
Industrial Development Bank of India (IDBI), is a leading Indian securities firm, offering
a complete suite of products and services to individual, institutional and corporate
clients. The services include fixed income trading, equities brokerage, debt and equity
derivatives, research, private placements, depository services, portfolio management and
distribution of financial products. Over the last five years, we have emerged as a leading
player in each of these businesses.
 March 1995 - Commenced Equity Broking on NSE CM segment

 July 1995 - Built agent Distribution Network across the country
 October 1996 - Commenced Debt Broking on NSE WDM segment
 December 1996 - Started operations as a Depository Participant
 1996 - Started to act as Arranger to Privately Placed Bond issues

 April 1998 - Commenced operations as a Portfolio Manager
 February 1999 - Acquired membership of BSE, Mumbai
 November 1999 - Started operations as a Primary Dealer
 June 2000 - Acquired Derivatives memberships of BSE and NSE
 March 2002 - Achieved an outright secondary market turnover exceeding
Rs100,000
 October 2002- Commenced trading in Interest Rate Swaps
 REFCO - SIFY SECURITIES INDIA PVT. LTD

Refco-Sify Securities India Pvt. Ltd., headquartered in Mumbai, is a joint venture
between the Refco Group Holding Ltd., USA; and Satyam Infoway Limited (NASDAQ:
SIFY) to offer online and offline equity and derivatives trading for retail customers as
well as execution and clearing services for financial institutions.
Refco also provides clients with prime brokerage services, fixed income, equities,
foreign exchange, OTC derivatives and asset management. Refco is a leader in providing
clients with the latest technological advances in products and services. Its proprietary
systems and global infrastructure provide the flexibility to meet all client requirements.

INDUSTRY ANALYSIS
INDUSTRY ANALYSIS USING PORTER’S 5 FORCES MODEL
SUPPLIERS
 NSDL & CSDL are the regulatory bodies for Depository Participants like SSKI,
SHCIL, ICICIdirect.com, etc. Also these regulatory bodies have got an upper
hand as the bargaining power stock broking houses like SSKI, etc. would be less.
 NSE & BSE are playgrounds where common an investor trade through stock
broking houses, for which they have to take permission from NSE/BSE.
 NSE & BSE are under the purview of SEBI, that’s why stock broking houses like
SSKI, have low bargaining power. But here there is one advantage that NSE/BSE
have i.e. they cannot go for forward integration.
 Web maintainers are companies which maintain web sites & technical aspects of
the same. Here stock broking houses like SSKI can have more bargaining power
due to stiff competition among web maintaining companies.

 Web maintainers are companies who make and maintain software’s for stock
broking houses. If say for example stock broking houses switches over to other
web maintainers then that company cannot understand the mechanisms of
software’s. So it is quite high switching cost.
BUYERS
 There are various types of investors who trade through stock broking houses like
SSKI, which includes investors like small investors, medium net worth investors,
business partners, institutional investors and mutual fund companies.
 Here the bargaining power of stock broking houses depends on how big the
investor is.
 So here we can say that bargaining power of stock broking houses is high in case
of small investors & HUF.
 While the bargaining power is moderate in case of HNI (High New Worth
Investors)/ MNI’s (Medium Net Worth Investors) and business partners.
 But the in case of mutual fund companies and institutional investors bargaining
power is less.

 There is competitive buzz in stock broking industry; competitors are offering low
brokerage and best services with added feature. So switching cost is pretty much
less. So the buyer can easily switch over to competitors product.
COMPETITORS
 The company is facing the competition from local as well as national level
players. The local players provide facility for off-line trading while the national
players like ICICIdirect.com and Kotakstreet.com, HDFC Security provide
online trading services.
 There are also other big names like Indiabulls, Motilal Oswal, 5paisa and
Marwadi encircles the company form both the sides by providing online and off-
line trading with competitive services.
POTENTIAL ENTRANTS
 The potential entrants in like Investmart, Jeojit and Cipher which are coming in
near future to Rajkot City.

 Nationalized banks are also thinking to enter in this field by tying up with
broking houses. E.g. Bank Of Baroda.
SUBSTITUES
 Here substitutes are such instruments which can be used instead of investing in
shares.
 The instruments like Bank FD, insurance, mutual funds are the substitutes.
 If the use of this instruments increase this may be disadvantage for the stock
broking houses.
 The companies and banks which are having these instruments can plunge into
this industry.
ENTRY BARRIERS
 Huge capital: - Capital is necessary not only for fixed facilities but also for
customer’s credit and absorbing start up losses. To start a stock broking house,
one needs huge capital for technology up gradation and skilled manpower.
 Technology: - Technology for stock broking houses is life saving device. Stock
broking requires huge capital to make their products user friendly, which in turn
requires capital to employ skilled manpower. Thus, technology could be one of
the entry barriers.

 Regulatory Constraints: - Obtaining a license is a tedious job for a stock
broking house. It should comply with the regulation of the governing bodies like
SEBI, NSDL, etc. For a stock broking houses to plunge into the stock broking
industry, it needs to have some kind of financial background and expertise. Thus,
regulators constraints could be an entry barrier.
 Experience curve: - The core competency in this industry is the services which
are provided to the end-users and the research based activities which includes
“TIPS”, fundamental as well as technical script analysis. Also the most important
thing which helps already established firms is-“TRUST” which people would be
having on firms like SSKI , Motilal Oswal, etc. this is very difficult for new
companies to imitate.
 Network: - The “Reach” to the customer is the key factor in the industry. The
network of the companies like Motilal Oswal, Sharekhan, and ICICI is very
efficient and spreaded all over India. It will take time for a new entrant to
establish such a huge network (e.g. Marwadi), which say that, “Network can
come up as most difficult entry barrier to overcome.”
 Expected Retaliation: - Whenever a new player comes in the industry, the old
companies have an option to reduce the prices of their product. This kind of
practice is called expected Retaliation which is also possible in this industry in
terms of less brokerage rates and reduced account opening charges. E.g. before
the entry of so many mew companies, Sharekhan was having two types of
accounts viz. speed trade speed trade plus, which were costing 1000 & 1500
account opening charges respectively. But due to competition, they have come up
with only one account i.e. speed trade plus with the account charges of Rs.1000.

COMPETITIVE ANALYSIS
FOLLOWER:
 The followers are those who just blindly follow the other player which are
leader and challenges.
 The players like 5 paisa, Motilal Oswal, HDFC Securities, Kotakstreet are the
followers.
LEADER:
 Edelweiss Broking Ltd. is a leader in the online account which is having

1, 80,000 accounts in the country.
 While in offline account Sharekhan is leading with 64,000 offline accounts.
NICHER:
 Edelweiss Broking and ICICI Direct are the two stock broking houses which
are focusing only on online investors.
CHALLENGER:
 Sharekhan, Kotakstreet and Indiabulls come under this head.

 Sharekhan challenges competitors by providing quality services and research
based advice.
 Indiabulls is also challenging with low brokerage rates and class one services.
Traditional Broking
Traditionally In stock Market, the investors invest their money in shares under the
guidance of the Brokers of any stock broking company. This is convenient to those
investors who are not familiar with the computer and the use of internet. But it requires
more dealers to the share broking companies to give guidance related to investment.
There was a chance of inaccuracy of price because it is a time consuming process. The
cost of the company also increases due to more paperwork. The investor point of view,
there was a problem of privacy. The information of investor may leak by the broker. So,
to remove these limitations of traditional broking, there was an emergence of new
concept e-Broking.
E- Broking
Today is world of technology. So, the person who adopt it, get the success. So, E-
Broking means broking through electronic means. E-Broking is the broking in which the
investors who are familiar with the use of computer and Internet they directly trade in
stock market. They trade any time at any place when the stock market is open. The cost
of transaction is also reducing with time. The investors have a large range of option for
the trading. It is a paperless transaction so it reduces the cost of company. There was a
facility of live streaming quotes, which give exact price of share which prevailing in the
market at that time. There are two types of online trading service: DISCOUNT BROKER
and FULL SERVICE ONLINE BROKER.

Discount online brokers allow you to trade via Internet at reduced rates. Some provide
quality research, other don’t. Full service online brokerage is linked to existing
brokerage. These brokers allow their client to place online orders with the option of
talking/chatting to brokers if advice is needed. Brokerage rates here are higher. online
trading is still in its infancy stage in India. with trading turnover at around Rs.10 crores
per day from online trading compared to a combined gross turnover of around Rs.9000-
10000 crores handled by the BSE and NSE together, online trading has a long way to go.
INTERNET TRADING IN INDIA:
In the past, investors had no option but to contact their broker to get real time access to
market data. The Net brings data to the investor on line and net broking enables him to
trade on a click. Now information has become easily accessible to both retail as well as
big investors.
The development of broking in India can be categorized in 3 phases:
1. Stock brokers offering on their sites features such as live portfolio manager, live
quotes, market research and news to attract more investors.
2. Brokers offering on line broking and relationship management by providing and
offering analysis and information to investors during broking and non-broking
hours based on their profile and needs, that is, customized services.
3. Brokers (now e-brokers) will offer value management or services such as initial
public offerings on line, asset allocation, portfolio management, financial
planning, tax planning, insurance services and enable the investors to take better
and well-considered decisions.
In the US, 82 per cent of the deals are done on line. The European on line broking market
is expected to be of $8 billions and is likely to raise five fold by 2002. In India, presently

Internet trading can take place through the order routing system, which will route client
orders to exchanges trading systems for execution of trades on stock exchanges (NSE
and BSE). This will also require interface with banks to facilitate instant cash debit or
credit and the depository system for debit or credit of securities.
COMPANY PROFILE
Edelweiss, a rare flower found in Switzerland. A

graphic flower that represents ideas. Around it, the
protective arms of the letter ‘e’: They believe ideas
create wealth, but values protect it. It is the practice of
this core thought that has led to Edelweiss becoming
one of the leading financial services company in India. Its current businesses
include investment banking, securities broking, and investment
management. They provide a wide range of services to corporations,
institutional investors and high net-worth individuals.
The core inspiring thought of ‘ideas creating wealth and values

protecting it’ is translated into an approach that is led by entrepreneurship
and creativity and protected by intellectual rigor, research and analysis.

Edelweiss Today
• One of the leading financial services companies in India

• A revenue CAGR of 103% over the last 10 years
• One of the largest equity research teams
–Differentiated research capabilities
–Only Quant team in India
–Only Analytics team in India
–Highly respected and acknowledged Thematic Research
• In India
–Closed over 100 transactions in investment banking
–Top 5 Domestic Brokerages in India
–Top 3 Derivatives Desks
• One of the first and largest alternative investment desks

Edelweiss Approach
Client Focus
Edelweiss is driven by the emphasis we place on building long-term

relationships with our clients. We work closely with our clients to equip them
with the ability to address large, fast-growing market opportunities. Our
emphasis on long-term relationships also means that we have a significant
ongoing involvement with almost all of the clients that we work with.
Execution Orientation
Edelweiss focuses obsessively on delivering high quality execution through

its experienced team of professionals. Each team is led by senior personnel
and is highly research and ideas driven. Edelweiss places strong emphasis on
confidentiality and integrity in a sensitive business environment.
Culture
Edelweiss fosters a culture that is entrepreneurial and results-driven and that

emphasizes teamwork and intellectual rigor. It’s team is encouraged to
display higher levels of initiative, drive, and hunger for learning and taking
on additional responsibility.
Professional Integrity
Edelweiss place a strong emphasis on confidentiality, honesty and integrity

in our business dealings Edelweiss expect its people to maintain high ethical
standards, both in their professional and personal lives. Edelweiss strive to
be fair in all our dealings. It respects its competitors.
Research Driven
All businesses of Edelweiss are built on a research and analytics foundation.

The company’s understanding of underlying market trends and strong
analytical expertise has resulted in a demonstrated ability to identify
emerging trends and themes early. Edelweiss seek to provide the highest
quality research and investment opinions to its clients.

Board of Directors of Edelweiss Capital Limited
• Rashesh Shah
• Venkat Ramaswamy
• Kunnasagaran Chinniah
• Narendra Jhaveri
• P. N. Venkatachalam
• Ramanan Raghavendran
• Sanjay Santhanam
• Sunil Wadhwani
• Navtej S. Nandra
Company Secretary
• B. Renganathan
Statutory Auditors

• B S R & Associates
Internal Auditors
• M. P. Chitale & Co.
Bankers
• Axis Bank Limited

• Citibank N.A.
• HDFC Bank Limited
• HSBC Limited
• ICICI Bank Limited
• IDBI Limited
• Standard Chartered Bank
• State Bank of India
Senior Management Team
Rashesh Shah Venkat Ramaswamy
Chairman & CEO Executive Director
Deepak Mittal Himanshu Kaji
CEO, Edelweiss Tokio Life Insurance CFO & Group COO

Company Limited
Rujan Panjwani

Naresh Kothari
President & Co-head Institutional Equities, President & Co-head - Asset Management
Private Client Services

Rajeev Mehrotra
Peeyoosh Chadda
Executive Vice President & Head - Special
Opportunities Investments
Co-head - Asset Management
Ravi Bubna
Vikas Khemani
Executive Vice President
Executive Vice President & & Co-Head - ECL Finance
Co-head - Institutional Equities
Edelweiss Business Principles
‘Ideas create, values protect’ is how we define what Edelweiss believes

in. But when we say ‘values protect’ what do we mean? Here’s a handy guide
to the values and principles we will live by and live up to.
We will be a Thinking Organization. We will constantly bring ‘thought’ to

everything we do. Our clients’ and our own success depends on our ability to
use greater ideation and more imagination in our approach.

We will be Fair to our clients, our employees and all stake holders. We want
our clients and our employees to be ‘richer’ for their relationship with us.
We will take care of our People seriously. Our policies – in spirit and in letter –
will ensure transparency and equal opportunity for all. We will go beyond the
normal goals of attracting, recruiting, retaining and rewarding fine talent: We
will ensure that every individual in Edelweiss has an opportunity to achieve
their fullest potential.
We will operate as a Partnership, internally and externally. Though

individuals are very often brilliant, we believe teamwork and collaboration
will always ensure a better and more balanced organization. We will also
treat our clients as partners and show them the same respect and
consideration that we would toward our internal team members.
We will focus on the Long Term. Though the world will change a lot in the
coming years and our assumptions for the future may not hold up, we will
reflect on the long-term implications of our actions. Even when making short-
term decisions we will be aware of the long-term implications.
We will focus on Growth for our clients, employees and shareholders.
Our Reputation and image is more important than any financial reward.
Reputation is hard to build and even harder to rebuild. Reputation will be
impacted by our ability to think for our clients, maintain confidentiality and
by our adherence to our value system.
We will Obey and Comply with the rules of the land. We will maintain the
highest standard of integrity and honesty. When we are unclear we will seek
clarifications.
We will respect Risk. Our business is going to be a constant challenge of

balancing risk and reward. Our ability to constantly keep one eye on risk will

guide us through this fine balance.
Our Financial Capital is a critical resource for growth. We will endeavor to

grow, protect, and use our financial capital wisely.

Brokerage Plans:
Advance Brokerage (ADB) Plans:

Standard Plans (For Margin Money):
Value added services with each subscription plan:

Plan 1 (Code: EBSPN01)*
• Client profiling and investment need analysis
• Weekly call on products that suit client profile
• Free subscription to Xpress – Web-based Trader Terminal Screen
• Fundamental research reports from Edelweiss' coverage of client's choice

and the updates on those stocks
• Special analytical reports as published by Edelweiss from time to time,

which suit the client's profile and requirement

• Invitation to participate in select EW conferences and seminars


• Quarterly meeting with analyst


Plan Code: EBSPN06-08*

• Free subscription to Xpress – Web based Trader Terminal Screen
• Quarterly meeting with analyst
• Fundamental research reports from edelweiss coverage of client’s choice

and the updates on those Stocks
• Special analytical reports as published by edelweiss from time to time,

which suit the client’s profile and requirement
Edelweiss USP’s:

Trading system
Integrated online and offline

You can call a dealer and trade, and monitor your trades
Easy and clutter free trading pages
Convert delivery position to intraday and vis a versa whenever you
want
Auto suggest for selection of stock
Simple and common stock code across BSE and NSE
See your DP holding value real-time
Xpress - simulates a broking terminal experience
Alerts
Choose your own user id - no need to remember tough system
generated usernames
Trading data flowing into Portfolio automatically for easy monitoring
Easy to use payment gateway
Personalized service with online support
IBT terminal to implement strategies like Pair
Easy and quick execution
Basket Trades
After Market Orders
Cross Referencing between strategies and Trade Pages for immediate
execution

Limits and risk
Fungible limits between equity and F&O markets

Sell stocks and get limits for FNO.
Limits against stocks in FNO and equity
Lower margins for Intraday stock future and options
Realized profit is considered as part of limit during the day
Large number of scripts with lower margin for intraday product
Appropriate margin call for containing risk
Leverage products like T+5, Intraday F&O, MTF
Info
Clutter and noise free site

Rich info no need to visit any other site for info
Neatly classified data
Information available on all equity, MF, Commodity, derivatives
Advanced stock screener for equity and MF
Compare price performance of multiple stocks over any time period
Comprehensive stock snapshot page, helps in making decision
Charting tool for technical analysis
Call Centre for dealing and responsive customer service
Minimum clicks for maximum info
Neatly designed WAP site
Access quotes, stock snapshot, world markets in a snap
Access your portfolio and Watch list on mobile - only service to do so
Unique Desktop tool - no other service offers this
Fabulous Desktop tool - access Research and Portfolio offline, anytime,
anywhere
Desktop captures the entire MyEdelweiss section
Customize your view and the way you want to look at stocks through
the MyEdelweiss section
My Edelweiss offers portfolio tracker, research and strategies - fully
customizable
Don’t track research - research tracks you – MyEdelweiss section offers
Research on 1. your stock portfolio 2. Stock you wish to track 3. Type
of research 4. investment horizon
Research
Institutional Equities Research - first in India to be offered to individual
clients
Research reports from Edelweiss Research, ranked 4th by Asia Money
for 2008.
Research coverage across 20+ sectors covering 70% of Market Cap.
Consolidated financial statements provided on the companies - only
site to do so. View both consolidated and stand alone results
Macro and Micro economy research reports on regular basis.
Fundamental and Technical analysis to pick the right stock
Peer group comparison based on fundamental and technical analysis.
Unique stock views - bucketing stocks based on qualitative and
quantitative parameters
7 Daily Reports offering a view on cash, F&O, technical and
fundamental view on the overall market
Sectoral research on various sectors on regular basis.
In-depth and incisive Quarterly result analysis on the same day as
results for all stocks covered - with a view on the future
Edelweiss ratios based on factors such as solvency, growth,
profitability
Continuous Market commentary based on events, actions and
announcements.
Regular updates on forthcoming and past IPO's.
Daily reports and updates on commodities, currencies and debt
markets.
Easy and relevant access to Research with links at the right places - no
need to hunt for research on your stocks
Quarterly and Monthly research on Current and Future Environment.
Derivative calls and updates on daily basis.
Live commodity prices and news of all the commodities traded.
Comprehensive commodity coverage - Base metals, bullion, Agro and
Energy
Technical charting based on graphical description, stock movements
and allows analytical interpretations using SMA, EMA, RSI, MACD and
other tools.
Stock screener based on 70 parameters - price, growth, returns and
valuations. Zero in on stocks to meet your criteria in a jiffy
Mutual funds comparison based on peer performance and sectoral
performance.
Detailed updates on Mutual Funds based on performance ,schemes
and offerings.
Track movements in AUM and portfolios - who buying and selling
Daily MF investment activity updates

Intuitive scheme selector to arrive at MF schemes to match your
investment profile and needs
Stay ahead with regular updates on SMS and email - also updated on
web site instantly
Edelweiss Stock Ranks on 200 stocks based on price, value, growth.
Also composite ranking for each stock in coverage universe

Edelweiss presence:

Product Profile

1. Investment Banking
2. Institutional Equities
3. Asset Management
4. Wealth Management
5. Private Client Brokerage
6. Wholesale Financing
7. Client Advisory Services

Investment Banking
Edelweiss Investment Banking business is dedicated to providing corporations,

entrepreneurs and investors, the highest quality independent financial advice and
transaction execution. Its professionals offer a full range of services and transaction
expertise, including private placements of equity, capital raising services in public
markets, mezzanine and convertible debt, mergers and acquisition and restructuring
advisory services. It have a track record of successfully closing more than 100
transactions to date.
Edelweiss focused effort and research-driven approach enable its professionals to be

among the most knowledgeable and best in the business. Their business has been built
on strong relationships, innovation, and uncompromising ethical standards. They aim to
create significant value for entrepreneurs and mature companies by helping them execute
the right capitalization strategy.
Offerings
• Private Equity Advisory
• Structured Finance Advisory
• Mergers and Acquisitions Advisory
• Real Estate Advisory
• Equity Capital Markets
• Infrastructure Advisory
• Debt Restructuring Advisory

Institutional Equities
Edelweiss Securities Ltd., a subsidiary of Edelweiss Capital Ltd., is the equities arm of
the Edelweiss Group. The company is a corporate member of both The Bombay Stock
Exchange and The National Stock Exchange of India Limited, providing equity broking
and research services, as well as marketing of equity related products, including
IPOs/FCCBs, to domestic and foreign institutional investors.
Institutional Equities – Insightful Research. Winning Strategies
In their approach lies our difference. In a short span of six years, Edelweiss Capital’s
Institutional Equities Business (IE) has become one of the top five domestic brokerage
houses and top three derivatives desks. They are the only brokerage on the Street with a
quant desk that provides a wide product range, servicing all investor categories. Our
innovative mindset, unparalleled research, agile sales teams, and intensive execution
systems have enabled them to relentlessly service their clients in newer and different
ways.
Edelweiss cater to a wide clientele comprising leading domestic and international

institutional investors, including Pension Funds, Hedge Funds, Mutual Funds, insurance
companies, and banks.
Theme Research
Theme-based fundamental research
What is theme-based research?

Inductive research or connecting the dots across economy-wide trends, thereby

providing a different perspective. Creating a hypothesis of the evolution of
trends over a longer period of time.
Why are themes important?

Themes play out over long periods of time; potential payouts are also over a
longer duration. The breadth of the pay-back is also not restricted to a few
companies, but potentially a number of multi-baggers are created in different
sectors.
Edelweiss have been one of the earliest to cover the private capital markets in
India and profile high growth sectors and companies. Edelweiss' research has
helped in developing an in-depth understanding of these new, high growth areas,
particularly in the Indian context, by analyzing industry dynamics and emerging
trends as well as showcasing some of the exciting private companies in each
sector. Their goal is to find companies in the early stages of significant growth.
Asset Management
Edelweiss Asset Management offers a range of investment products and advisory

services across the risk return spectrum to individual and institutional investors. Their
close focus on client requirements is their inspiration in designing products which offer
the best opportunity for asset growth with a constant focus on risk and preservation of
capital.
Over the past 7 years Edelweiss have significantly strengthened our equity product
offerings to cover the entire gamut of products. It have developed significant expertise in

providing advisory services in the alternative investments space through a deep
knowledge of non traditional asset classes such as derivatives.
Their products are designed to provide their clients with superior performance through
market cycles by virtue of their deep understanding of the equities markets and
analytical approach to risks and return.
Offerings
• Portfolio Management
• Mutual Funds
• Other Products
Bespoke Advice - Discretionary Portfolio Services give you the benefit of investment
advice designed to achieve your financial objectives.
Professional Management - The service provides professional management of equity

portfolios with the objective of delivering consistent long-term performance while
controlling risk.
Continuous Monitoring - We recognize that portfolios need to be constantly monitored

and periodic changes made to optimize the results.
Risk Control - Risk team is responsible for establishing our investment strategy and
providing us real time information to support our portfolio managers.
‘Personal’ Fund Manager – The client’s portfolio is professionally managed by a fund

manager who is easily accessible to the investor unlike in a Mutual Fund in addition to
which we provide a designated Relationship Manager for the client who can offer asset
allocation advisory on your entire portfolio
Superior Returns – Portfolio returns are protected in volatile markets through hedging in
derivatives and short-term capital gains can be set-off against business income for clients
in a PMS as compared to Mutual Fund
Wealth Management
At Edelweiss, Wealth Management is a Practice

It is a specialized profession where experts combine their efforts to meet the wealth
planning, investment, and financial management needs of individuals, families, family
offices, or corporates.
More than just Financial Services

Edelweiss Wealth Management takes one step closer to clients, by providing an "all-in-
one approach”.
Customized Financial Solutions

Advice on asset allocation and thereby creating customized financial solutions for
HNWIs, NRIs, Trusts and Corporates
Wide range of Innovative Advisory services

Edelweiss offer advisory services on Structured Products, Portfolio Management, Mutual
Funds, Insurance, Derivative Strategies, Direct Equity, IPOs, Real Estate Funds and Art
Funds.

Based on Edelweiss holistic investment approach they advise clients, using a mix of
asset classes & innovative products.
Portfolio Management Services

Advise on Portfolio Management Services
Direct Equity
Providing in-house research based advice on select stocks
Structured Products
Products that offer our clients unique risk-reward equations that are customized to their
investment objectives
Mutual Funds
Research based recommendations on Top Picks in Mutual Funds
Insurance
Life & General Insurance Advisory
Real Estate Funds

Advise on Investment in Real Estate through Fund Structure
IPOs
Advising & facilitating financing on select IPOs based on their in-house research
Art Funds
Advise on Investment in Art through Fund Structure

Derivatives Strategies
Advise on Arbitrage Strategies offering superior risk-return characteristics
Advisory Process
Identify lifestyle Goals
• Identify and quantify lifestyle goals
• Detail current personal & financial situation
Assess Identify Key Issues
• Evaluate current financial position
• Review wealth creation, retirement estate planning
• Review tax structures e.g. individual, family offices & private companies
Analysis & Planning
• Assess financial strategy options to meet goals gap analysis
• Identify most appropriate investments to match risk profile
Wealth Management Strategy
• Tailored financial strategies to achieve stated goals
• Detail recommended asset allocation & investments
• Wealth creation & estate planning advise to protect wealth
Strategy Presentation & Implementation
• Strategies & rationale discussed
• Wealth Manager facilitates the implementation of all recommendations
Review
• Review progress towards achieving lifestyle goals
• Review appropriateness of asset allocation & investments
• Review new goals
Private Client Brokerage
The Private Client Services Group at Edelweiss is focused on providing products,

strategies and services to High Net worth Individuals and Corporate Clients. We have
geographic reach through our Branches, Channel Partners & Investment Consultants in
over 19 locations in India. The PCG team has highly trained equity professionals, who
act as your Equity Advisor. Our ESL Equity Advisor proactively helps you take
informed investment decisions and build a healthy portfolio.
Edelweiss draw on its strong presence and industry leadership to develop a portfolio of
offerings designed to serve the spectrum of financial needs.
Edelweiss main objective is to provide clients with all the tools and services they need to
reduce the administrative burdens of managing money and focus on what you do best -
maximizing your trading performance, building your business, and attracting new
sources of capital.
Edelweiss investment philosophy is rooted in the following :
• Capital preservation is key - Capital gains follow from a well-thought out

investment strategy.
• Invest in stocks with a long term view.

• Use a combination of top-down and bottom-up approach to arrive at a basket of
investment worthy stocks
• Invest on the basis of fundamental analysis of companies taking into account

market sentiments.
• Maintain discipline in booking profits and use index futures to manage short term
volatility.
Wholesale Financing
Edelweiss Financing understands your needs and helps you meet liquidity requirements.
We offer various products and services to individuals and corporates with a close focus
on client requirements while designing our products.
Over a period of time we have been offering short term loans against securities and/or to
buy new securities. We also provide finance for investment in primary market issues. We
help promoters by financing against their share holding to meet their business
requirements, expansion of businesses and for diversification of the lines of business.
We possess expertise in financing short and long term loan facility, risk analysis, transfer
and assessment besides a broad spectrum of services. The company is headquartered in
Mumbai and our network of branches across India enables us to service you across
locations.
Offerings
• IPO Financing
• Loan against securities

• Promoter Funding
• ESOP Funding
Client Advisory Services
At Edelweiss Client Advisory Services, our team is driven not just by the quality of our
ideas, but also professional ethics and integrity. We take pride in our philosophy of
offering advice which is in the best interest of our clients. Our emphasis on building long
term relationship ensures that we work closely with our clients empowering them to gain
from market opportunities through our online portal www.edelweiss.in
www.edelweiss.in is a product that offers a unique online investment experience that is

intuitive, information rich and a hassle-free way to trade online. It defines the next level
in online trading technology. It enables intelligent investing with market strategies
custom suited to the client’s investment profile and current portfolio.

Marketing Strategies of Edelweiss
Business Advertisements
Asset Management

Institutional Equities

Insurance Broking

Investment Banking

Private Client Services

Wealth Management

DATA COLLECTION
Data collection means collections of information, facts or figures for the problem.
SOURCES OF DATA
Primary Data:
Primary data is the first hand information obtained by investigating. Primary source is
one itself collects the data. Primary data can be collected by observation, by interviews,
by face to face questioning, by using questionnaire, when the needed data do not exist or
are dated, inaccurate, incomplete, or unreliable.
Secondary Data:
Secondary data is collected by others already and the researcher is using that information
for his own research purpose. Secondary data can be collected from published reports,
newspaper, websites, journals, publications of national and international organization.
Primary Data:
1. Questionnaires
2. Personal Interview
CONTACT METHODS:
The respondents were contacted directly (Personal Interviewing). It is the most versatile
method. The interview was of intercept type in which respondents were asked to answer

the questions on the spot. The method is time consuming but it provides better results as
it involves face to face to interaction with the respondent which is missing in case of
telephonic, mail and other methods of interviewing.
Secondary Data :
1. News papers & magazines
2. Research articles
3. Reference Books
4. Websites.
DATA ANALYSIS
Based on what the various respondents’ opinion, the data collected was analyzed using
figures. No rigorous mathematical analysis could be done. All estimations are solely on
judgment. For questions percentage was calculated and represented in the form of charts.
After representing the data in the form of charts the same were interpreted to get in-depth
knowledge about the problem as well as general information, which helped the
researcher
to come at appropriate conclusions about the study and to give relevant
recommendations.
FIELD WORK
The survey was conducted for 8 weeks in Gurgaon, NCR. The survey was conducted at
various financial markets like SCF market, Sector-14 market etc.
Data Representation:

To represent the data collected some graphical charts, tables and statistical tools are
used.
RESEARCH TOOLS
Software: Microsoft Excel
Data Analysis and Interpretation
Number of Investor's
Accounts
Month-Year (In Lacks) Trend Percentage(%)
Jan-00 23.22 100
Jan-01 34.21 147
Jan-02 37.18 160
Jan-03 3.95 163
Jan-04 52.03 224
Jan-05 63.01 271
Jan-06 75.6 326
Jan-07 79.03 340

Jan-08 93.72 403
Jan-09 96.86 417
Jan-10 105.85 456
Actual Demat Trend Demat

Quantity(Shares in Quantity(Shares in Increase or
Month-Year Crores) Crores) Decrease
Jan-00 1550 187 1363
Jan-01 3721 2858 863
Jan-02 5167 5530 -363
Jan-03 6876 8201 -1325
Jan-04 8369 10872 -2503
Jan-05 12866 13543 -677
Jan-06 17472 16215 1257
Jan-07 20270 18886 1384
Jan-08 23690 21557 2133
Jan-09 28287 24228 4059
Jan-10 35114 26900 8214

Number of Investor's
Month-Year Accounts Trend Percentage(%)
Jan-00 28545 100
Jan-01 76003 266.2567875
Jan-02 128252 449.2976003
Jan-03 247369 866.5930986
Jan-04 629159 2204
Jan-05 1011397 3543
Jan-06 1861288 6521
Jan-07 2873508 10066.5896
Jan-08 4798222 16809.32563
Jan-09 5527479 19364.08828

Actual Demat Trend Demat
Quantity(Shares in Quantity(Shares in Increase or
Month-Year Crores) Crores) Decrease
Jan-00 57 -286 343
Jan-01 192 178 14
Jan-02 482 642 -160
Jan-03 821 1106 -285
Jan-04 1401 1571 -170
Jan-05 1908 2035 -127
Jan-06 2722 2499 223
Jan-07 3125 2963 162
Jan-08 4982 3422 1560
Jan-09 7081 3891 3190

Data analysis of this report depends upon a strong convention that perception of a
individual highly depends upon the awareness of individual towards the topic. Along
with the awareness other things which matters in this topic are Source of Income, Reason
of Investment, Income of an Individual, Age Factor. There are several other factors
which affect an investor’s perception but they all depend upon individual and also for
short term. Hence we are concise to important factors only.
1. Nature of occupation
Objective: To determine the difference of perception due to difference in source of

Income.
Table:
Nature of No. of Respondents

Occupation
Salaried 42
Self-employed 32
Retired 8
Others 18
Total 100

Graph:
No. of respondents
50
40 Salaried
42
30
32 Self-employed
20
18 Retired
10 8
0 Others
Salaried Self-employed Retired Others
Interpretation:
The study was conducted only on investors who are classified on the basis of the
occupation, respondent among the salaried are 42%, self-employed are 32%, retired are
8% and others are 18%.The possible of the respondent is dominated by salaried followed
by self-employed which may lead to positive impact on Online trading.

2. Objective of Investment
Objective: To determine the difference in perception due to difference in objective of

Investment
Table:
Objective of Investment No. of Respondents
Liquidity 25
Source of income 25
Tax Benefit 15
Capital appreciation 25
Others 10
Total 100
Graph:

Interpretation:
75% people are interested in (25%) liquidity, (25%) source of income and (25%) capital
appreciation. And remaining 25% are interested in (15%) tax benefit, and (10%) others.
3. Knowledge of share market
Objective: Difference in Knowledge of market also play an important role on the

perception of investors, hence it is necessary to know about the investor knowledge
about market. Also to know whether promotional activities are required to improve
perceptions or not.
Table:
Knowledge of share market No. of respondents
Partial 55
Completed 25
Nil 20
Total 100
Graph:

Interpretation:
On that basis, we conclude that 25% people know about the securities investment and
20% people know nothing about the securities investments and 55% people have partial
knowledge about it, so, some promotional activities are required for increasing the
awareness about security market.
Rated in 5 parameters as
1-Highly Aware 2- Aware 3- Neutral 4- Not Aware 5- Highly not aware
Assessment of the customer’s awareness and knowledge about the following details of
the securities and capitals industry. Questionnaire is divided in two parts (i) Awareness
towards Services & (ii) Awareness towards the charges levied by the DP.
1. Awareness about Demat Account
Table:
Rating Parameters No. of Respondents

Highly Aware 15

Aware 70
Neutral 10
Not Aware 5
Highly not aware 0
Graph:
Interpretation:
From the graph, it is evident that 70 % of the respondents are aware about the demat
account. 15 % are highly aware whereas only 5 % are not aware about the demat
account.
2. Procedure of account opening:
Table:

Highly Aware 25
Aware 55
Neutral 10
Not Aware 8
Highly not aware 2

Graph:
Interpretation
55 % of the respondents are aware about the procedures of opening demat account, 25 %
are highly aware, hence 75 % are aware about the process. Only 8 % are not aware and 2
% are highly not aware, hence 10 % are not aware about the process.
3. International Securities Identification Number:
Table:

Highly Aware 0
Aware 5
Neutral 10
Not Aware 45
Highly not aware 40
Graph:
Interpretation:

Only 5 % of the respondents are aware about the International Securities Identification
number.45 % are not aware and 40 % are highly not aware, hence 85 % have no
awareness related to this subject.
4. Mode of receiving corporate benefits
Table:

Highly Aware 15
Aware 30
Neutral 20
Not Aware 20
Highly not aware 15
Graph:
Interpretation:
30 % of the respondents are aware and 15 % are highly aware about the corporate
benefits. 20 % of the respondents are neutral and not aware about the benefits.

5. Transaction Statement
Table:

Highly Aware 10
Aware 40
Neutral 30
Not Aware 15
Highly not aware 5
Graph:
Interpretation:
40 % of the respondents are aware about the transaction statement, 30 % are neutral,
whereas only 10 % are highly aware about the transaction statement.
6. Nomination
Table:

Highly Aware 20
Aware 43
Neutral 14
Not Aware 18
Highly not aware 5
Graph:
Interpretation:
43 % of the respondents are aware about the nominations, 20 % are highly aware and 5
% of the respondents are highly not aware about the subject.
7. Transmission of Demat securities
Table:

Highly Aware 3
Aware 16
Neutral 25

Not Aware 26
Highly not aware 30
Graph:
Interpretation
30 % of the respondents are highly not aware and 26 % of the respondents are not
aware about the subject. Only 16 % are aware about the transmission of demat
securities and 3 % are highly aware.
8. Rematerialization of Demat securities
Table

Highly Aware 3
Aware 24
Neutral 31
Not Aware 23
Highly not aware 19

Graph
Interpretation
24 % of the respondents are aware about the rematerialization of the demat securities.
31 % have neutral view and 23 % are not aware about the subject.
9. Lending & Borrowing of Demat securities
Table

Highly Aware 0
Aware 7
Neutral 36
Not Aware 27
Highly not aware 30
Graph

Interpretation
Only 7 % of the respondents are aware about the lending and borrowing of demat
securities whereas 27 % are not aware and 30 % respondents are not highly aware
about the subjects.
10. Freezing of Demat Account
Table

Highly Aware 11
Aware 24
Neutral 30
Not Aware 23
Highly not aware 12
Graph
Interpretation
24 % of the respondents are aware of the freezing of the demat account, 11 % are
highly aware. On the other hand, 23 % are not aware and 12 % are not highly aware
about the subject.

11. Reduction in paper work
Table

Highly Aware 27
Aware 38
Neutral 20
Not Aware 9
Highly not aware 6
Graph
Interpretation
38% of the respondents are aware about the reduction in paper work due to
dematerialization of shares, 27% are highly aware hence it can be said that this
process have a high awareness.
Only 9% of the respondents are not aware and 6% are not highly aware of the subject.
12. Quick Transfer of ownership
Table:

Highly Aware 22
Aware 33
Neutral 22
Not Aware 16
Highly not aware 7
Graph:
Interpretation:
33% of the respondents are aware about the quick transfer of ownership of shares due
to dematerialization of shares, 22% of respondents are highly aware whereas 16% of
respondents are not aware and 7% are highly not aware.
13. Reduction in Brokerage
Table:

Highly Aware 10
Aware 37
Neutral 21

Not Aware 19
Highly not aware 13
Graph:
Interpretation:
It is evident from the graph that 37% of the respondents are aware about the reduction
in brokerage but only 10% are highly aware about the subject. On the other hand 19%
of the respondents are not aware and 13% are Highly not aware about the subject.
14. Elimination of Bad deliveries
Table

Highly Aware 6
Aware 42
Neutral 20
Not Aware 18
Highly not aware 14
Graph

Interpretation:
It is evident from the graph that 37% of the respondents are aware about elimination
of Bad deliveries, but only 10% are highly aware about the subject on the other hand
19% of the respondents are ot aware and 13% are not highly not aware about the
subject.
15. Faster Settlement Cycle
Table

Highly Aware 12
Aware 53
Neutral 21
Not Aware 11
Highly not aware 3
Graph
Interpretation:

More than half of the respondents i.e. 53% are aware about the faster settlement cycle,
12% are highly aware and only 11% are not aware about the subject.
16. No Courier/postal charges
Table

Highly Aware 16
Aware 20
Neutral 25
Not Aware 24
Highly not aware 15
Graph
Interpretation
20% of the respondents are aware about the absence of postal/courier charges , 16%
are highly aware of the subject. Where is 24% of the respondents are unaware about
the absence of courier charges.

17. Low transaction cost
Table

Highly Aware 10
Aware 15
Neutral 15
Not Aware 20
Highly not aware 40
Graph
Interpretation:
Only 15% of the respondents are aware about the reduction in transaction cost whereas
40% are highly not aware about the subject, hence awareness should be created among
the customers regarding the subject.
18. No Stamp duty
Table

Highly Aware 5
Aware 35
Neutral 20
Not Aware 15
Highly not aware 25
Graph
Interpretation
From the graph it is evident that 35% of the respondents are aware about the absence
of stamp duty but as much as 25% are highly not aware about the subject, Hence
awareness should be created regarding subject.
19. Electronic credit of shares
Table

Highly Aware 5
Aware 32
Neutral 10
Not Aware 15

Highly not aware 38
Graph
Interpretation
It is evident from the graph that 38 % of the respondents are highly not aware about
electronic credit of shares , 32% are aware about the subject, Hence awareness should
be created regarding the subject.
20. No odd lot problem
Table

Highly Aware 13
Aware 20
Neutral 27
Not Aware 22
Highly not aware 18
Graph
Interpretation
Only 20% of the respondents are aware about the elimination of odd lot problem, 13%
are highly aware but 22% are not aware about the subject.
21. Faster distribution of benefits
Table

Highly Aware 16
Aware 23
Neutral 22
Not Aware 21
Highly not aware 18
Graph
Interpretation

23% of the respondents are aware about the faster distribution of benefits but 21% are
not aware and 18% are not highly aware about the subject.
22. Saves transaction time
Table

Highly Aware 25
Aware 35
Neutral 20
Not Aware 18
Highly not aware 2
Graph
Interpretation
35% of the respondents are aware about the reduction in transaction time due to
dematerialization of shares, 25% are highly aware but only 18% are not aware about
the subject.

23. Periodic Status report
Table

Highly Aware 11
Aware 21
Neutral 12
Not Aware 29
Highly not aware 27
Graph
Interpretation
29% of the respondents are not aware about the periodic transaction reports and 27%
are not highly aware about the subject. On the other hand only 21% are aware about
the subject.
Respondents opinion about the different charges levies by depository participants
24. Account Opening charges
Table

High 48
Medium 39
Low 13
Graph
Interpretation
48% of the respondents think that the account opening charges are high. 39% think
that it is moderate whereas only 13% feel that its is low.
25. Annual Maintenance charges
Table

High 19
Medium 29
Low 52

Graph
Interpretation
52% of the respondents think that the annual maintenance charges are low but only
19% think that it is high.
26. Custodian Charges
Table

High 22
Medium 57
Low 25
Graph
Interpretation

55% of the respondents think that custodian charges are moderate whereas 24% of the
respondents think it is low but 21% think it is high.
27. Transaction charges
Table

High 25
Medium 46
Low 29
Graph
Interpretation
46% of the respondents think transection charges are moderate where as 29% and
25% of respondents think its low and high respectively.

28. Market/Off market Charges
Table

High 25
Medium 36
Low 39
Graph
Interpretation
39% of the respondents think the Market/off Market charges are low 36% think its
moderate whereas 25% think its high.
29. Pledge/Hypothecation charges

Table

High 50
Medium 24
Low 26
Graph
Interpretation
50% of the respondents think that Pledge/Hypothecation charges are high, whereas 26%
and 24% think low and moderate respectively.
30. Dematerialization Charges
Table

High 28
Medium 44
Low 28

Graph
Interpretation
44% of respondent think that dematerialization charges are moderate while 28% think
its low but 28% of the respondents feel it to be high.
31. Satisfaction Level Of Investors towards Demat Account
Table

Highly Satisfied 21
Satisfied 35
Neutral 19
Dissatisfied 16
Highly Dissatisfied 9

Graph
Interpretation
35% of the respondents are satisfied by the dematerialization of shares , 21% are highly
satisfied whereas 16% are dissatisfied and 9% are highly dissatisfied.

Suggestions & Recommendations
Suggestions for the Study:

• The Investors should be provided with their statement of accounts at regular
intervals without any delays after the transaction takes place. The depository
participants should also inform the investors about their day to day trading
activities and their account balance
• Depository Participants should send pamphlets and magazines containing

information about the latest changes in the demat segment to their client. When
there are any new facilities offered by the depositories to the investors, it should
be properly intimated to investors. Depository participant are also advised to

conduct a number of investors awareness programs and advertise their offer of
services in various newspapers and popular magazines.
• The investors can put their complaints to their depository participants and in case
of failure of depository participants to resolve the complaints, then the investor
can write to the Investor Grievance cell of NSDL or CDSL.
• NSDL and CDSL are asked to create a Net Forum/E-Forum in order to exchange
their market information regularly between the investors and depository or
investors and depository participants or depository Participant and depository.
• Depository Participants can make it a regular practice to organize frequent

meetings for their investors so as to strengthen their relationship with the existing
investors. This would definitely give an opportunity for the DPs to take note of
grievances if any and offer prompt settlement of issues.
• In order to retain the investors, the depository participants should offer their
services promptly and kindly, In addition to this, Depository Participants can also
select one long time investor year by year and provide them with Gifts.
Conclusion
Now a days, share markets occupy a key role both in the development of economy and
individual investors in their business, The Indian capital market had thus witnessed
numerous changes in the recent years, and one such change is Dematerialization.
Dematerialization of securities play a vital role in improving and modernizing the capital
market and enhance the levels of investor's perception measures which aim at eliminating
the bad deliveries and forgery of shares. Thus, the study shows a clear picture on the
progress of investor's accounts and dematerialization of shares in NSDL and CDSL
and the Investor's perception towards Dematerialization of Shares.

Bibliography
➢ National Electronic Settlement and Transfer (NEST UPDATE), April2000.
➢ CDSL Annual Report 1999-00.
➢ Paperless trading- A Financial Express Guide, January 2007.
➢ Investor's Guide to Depository- NSDL Publications.
➢ Handbook for NSDL Depository Operations Module- NSDL Publication,

November 2005.
➢ National Securities Depository Ltd. , "Demat Simplified-A guide", NSDL,

Mumbai,1999.
➢ A Quick Reference Guide for Investors - Security and Exchange Board Of India.

➢ WWW.nsdl.co.in.
➢ www.cdslindia.com.
➢ www.edelcap.com.

Questionnaire
Instruction: Please use the following divisions for answering the questions:
1- Highly Aware 2- Aware 3- Neutral 4- Not Aware 5- Highly not aware
Do you know about the-
1).De Mat Account: 1. 2. 3. 4. 5.
2).Procedure of account opening:
1. 2. 3. 4. 5.
3).International Securities Identification Number:
1. 2. 3. 4. 5.
4).Mode of receiving corporate benefits:
1. 2. 3. 4. 5.

5).Transaction Statement
1. 2. 3. 4. 5.
6).Nomination
1. 2. 3. 4. 5.
7).Transmission of Demat Securities:
1. 2. 3. 4. 5.
8).Rematerialization of Demat Securities:
1. 2. 3. 4. 5.
9).Lending & Borrowing of Demat securities:
1. 2. 3. 4. 5.
10).Freezing of Demat Account:
1. 2. 3. 4. 5.
11).Reduction in Paper work
1. 2. 3. 4. 5.
12).Quick Transfer of ownership
1. 2. 3. 4. 5.
13).Reduction in Brokerage
1. 2. 3. 4. 5.

14).Elimination of Bad deliveries
1. 2. 3. 4. 5.
15).Faster settlement Cycle
1. 2. 3. 4. 5.
16).No courier/Postal charges

1. 2. 3. 4. 5.
17).Low transaction cost
1. 2. 3. 4. 5.
18).No stamp Duty
1. 2. 3. 4. 5.
19).Electronic credit of shares
1. 2. 3. 4. 5.
20).No odd lot problem
1. 2. 3. 4. 5.
21).Faster disbursement of benefits
1. 2. 3. 4. 5.
22).Saves transaction time
1. 2. 3. 4. 5.

23).Periodic status report
1. 2. 3. 4. 5.
Are you aware about the different charges levies by depository participants?
If yes then what is your opinion about these charges:
24).Account opening charges
1. 2. 3.
25).Annual maintenance charges
1. 2. 3.
26).Custodian Charges
1. 2. 3.
27).Transaction charges
1. 2. 3.
28).Market/off market charges
1. 2. 3.
29).Pledge/Hypothecation Charges
1. 2. 3.
30).Dematerialization Charges
1. 2. 3.
31).Satisfaction level of investors towards Demat Account:
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
Personal Details :
Name: _______________________________________________________________________
Gender: Male/Female Marital Status: Married/Single
Occupation: Salaried Self Employed Student Retired Others
Income: < Rs.10, 000, Rs.10,000 – Rs. 20,000, Rs. 20,000- Rs. 50,000
Above 50,000
Address: _____________________________________________________________________
Phone No: ____________________________________________________________________

Study On Progress and Investor's Perception Towerds Dematerialization of Shares.

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Study On Progress and Investor's Perception Towerds Dematerialization of Shares.

Uploaded by

Copyright:

Available Formats

EXECUTIVE SUMMARY

The Capital market in our Indian economy is undergoing a process of structural

“Study on progress and investors perception towards dematerialization of

1 | JK Padampat Singhania Institute of Management and Technology

2 | JK Padampat Singhania Institute of Management and Technology

Dematerialization is a process by which physical certificates of an investor are converted

4 | JK Padampat Singhania Institute of Management and Technology

Following requisites are necessary for dematerialization of securities:

1. Investors should have a depository account.

4. Separate demat requisition form is required for each issuer company.

5. Dematerialization Request Form (DRF) should be signed by all the holders so as to

Object Of Demat System

5 | JK Padampat Singhania Institute of Management and Technology

Securities that can be dematerialized

1. Shares, scrips, stocks, bonds, debentures, debenture stock or other marketable

6 | JK Padampat Singhania Institute of Management and Technology

In simple terms depository is an organization where securities of an investor are held in

Who is a Depository Participant?

A Depository Participant (DP) is an agent of the depository through which it interfaces

Number of Depositories in India

At present two Depositories viz.

1) National Securities Depository Limited (NSDL)

2) Central Depository Services (India) Limited (CDSL)

8 | JK Padampat Singhania Institute of Management and Technology

1. Enable surrender and withdrawal of securities to and from the depository.

2. Maintain investor holdings in the electronic form.

3. Effect settlement of securities traded on the Exchanges.

5. Coordination of benefits accruing on the depository accounts of investors.

9 | JK Padampat Singhania Institute of Management and Technology

1. To Study the progress of Dematerialization of Shares.

14 | JK Padampat Singhania Institute of Management and Technology

Research methodology is a systematic way to solve the research problems. It refers to

The research was a Descriptive Research.

16 | JK Padampat Singhania Institute of Management and Technology

Random sampling is the sampling technique I have used in my research.

17 | JK Padampat Singhania Institute of Management and Technology

HISTORY OF THE STOCK BROKING INDUSTRY

19 | JK Padampat Singhania Institute of Management and Technology

20 | JK Padampat Singhania Institute of Management and Technology

 BSE(BOMBAY STOCK EXCHANGE)

21 | JK Padampat Singhania Institute of Management and Technology

 NSE(NATIONAL STOCK EXCHANGE)

22 | JK Padampat Singhania Institute of Management and Technology

23 | JK Padampat Singhania Institute of Management and Technology

 NCDEX (NATIONAL COMMODITIES AND DERIVATIVES

Promoters of NCDEX are

 National Stock Exchange(NSE)

 NCDEX is nationalized screen based system which is providing transparent,

FACILITIES PROVIDED BY NCDEX

25 | JK Padampat Singhania Institute of Management and Technology

‘MULTI COMMODITY EXCHANGE’ of India limited is a new order exchange with

MCX, an independent and a de-mutualized exchange since inception, is all set up to

27 | JK Padampat Singhania Institute of Management and Technology

A person holding assets (Securities/Funds), either to meet his liquidity needs or to

29 | JK Padampat Singhania Institute of Management and Technology

1. S S KANTILAL ISHWARLAL SECURITIES PVT LTD. (www.sharekhan.com)

30 | JK Padampat Singhania Institute of Management and Technology

Trading Demat Delivery Square Banks Associated

Indiabulls 750 250 0.40 0.10 N.A.

5 paisa 800 NIL 0.20 0.05 Citibank, HDFC,

 S. S. KANTILAL ISHWARLAL SECURITIES PVT. LTD. (sharekhan.com):

31 | JK Padampat Singhania Institute of Management and Technology

 ICICI WEB TRADE LTD. (ICICIdirect.com):