Sarab's Project

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A PROJECT REPORT ON DEMAT
A PROJECT REPORT
On Demat Account
A project Report submitted in partial fulfillment of the requirements

for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
TO
PUNJAB TECNICALUNIVERSITY, JALANDHAR

BY
SARABMEET
ROLL NO. 90212268476
Under the guidance of
Ms. Sukhjit Kaur
CT GROUP OF INSTITUTIONS
SHAHPUR, JALANDHAR
CT INSTITUTE OF MANAGEMENT STUDIES, SHAHPUR, JALANDHAR

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Without practical training, management education is meaningless so long with the theory;
practical training is provided to management students to expose them to the actual
working environment of any organization. Such training provides a framework of
knowledge relating to the concepts and practices of the assigned topics in the
organization.
The summer training is an integral part of the course curriculum of three-year full time
management course. In this the student is in the position to analyze the integral working
of an organization with mature eyes and understand the dynamics in a much better
manner.
This particular project has been conducted at DHANLAXMI BANK. The objective of the
project is to know customer requirements from investment in Demat Account. The basic
purpose is to introduce the rural public with the company.

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I have done a research project on customer requirements from investments and Demat
Account on rural areas of Jalandhar concluded that most of the rural people preferred to
deal with nationalized banking i.e. DHANLAXMI BANK.
ACKNOWLEDGEMENT
It is the dream and aspiration of every management student to undergo Summer Training
in a reputed organization.”DHANLAXMI BANK ‘’ is also one of the reputed
organization in India.
The Project Title “ DEMAT ACCOUNT.’’ has been conducted by me during my training
at Dhanlaxmi Bank.I have completed this project, based on the Primary Research,
under the guidance of Mr.Deepak. I am very thankful to him for their busy working
hours, which helped me to do my project in a right way and in right direction.
I owe enormous intellectual debt towards my guides Mr. Deepak, who have augmented
my knowledge in the field of Demat Account. They have helped me learn about the
process and giving me valuable insight into the account.
I am obliged them for cooperation during the internship. My increased spectrum of
knowledge in this field is the result of their constant supervision and direction that
has helped me to absorb relevant and high quality information.

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I would like to thank all the respondents without whose cooperation my study would not
have been possible/complete.
SARABMEET
MBA III rd Semester

Roll No.: - 90212268476
DECLARATION
I hereby declare that the project work entitle on the “Demat Account “at Jalandhar is the
original work done by me.
This project report presented as a partial fulfillment requirement for the degree of Master
of Business Administration.
SARABMEET

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MBA 3RD semester
CT Group of Institution
Jalandhar

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EXECUTIVE SUMMARY
Training and development is the essential job of human resources department of every
organization. It is necessary to help employees in dealing with the changes caused by the
changing business environment.
I, SARABMEET had done my project in DHANLAXMI BANK which is a leading Bank
in Punjab. The main objective of my project was to “Demat Account”.
The training design included departments, and their training needs, month of training,
sequence of training and methods of training. A proper matrix was formed differently for
each level highlighting the requirements to be trained.
It also includes different skills workshop including the contents, objectives of the skills
imparted to the employees. Most important in training process are the ice breakers and
games which help the trainees in feeling relaxed and refreshed.
Each level in organization was considered as separate entity and training procedure for
them was also different.

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Table of contents
(i) Preface 2
(ii) Acknowledgements 3
(iii) Declaration 4
( ) Executive Summary 5
1 Introduction 7
2 Need, scope, Objectives and Methodology of the Study 17
Research Methodology 19
3 Main Text 24
4 Analysis, findings and suggestions of the study 47
Future Prospects 60

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(iv) Bibliography 64
(v) Annexure 65

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INTRODUCTION
Dhanalakshmi Bank was incorporated on 14th November 1927 by a group of public
spirited entrepreneurs at Thrissur, the cultural capital of Kerala with a capital of
Rs.11, 000 and 7 employees. It became a Scheduled Commercial Bank in the year
1977. It is today a pan India entity with 181 branches and 26 Extension Counters
spread over the States of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh,
Maharashtra, Gujarat, Delhi and West Bengal.
The Bank has recently received approval from the Reserve Bank of India for opening 66
branches across the country, 5 Regional Offices in Kerala at Thiruvananthapuram,
Ernakulam, Thrissur, Palakkad and Kozhikode and 2 Central Processing Centers
at Thrissur and Hyderabad. It also proposes to add 380 ATMs during the year
taking the customer touch points from the present 279 to 725 by the end of 2009-
10.

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The Bank serviced a business of Rs.8212 crores as on 31.03.2009 comprising deposits of
Rs.4969 crores and advances of Rs.3243 crores. The Bank made a net profit of
Rs.57.45 crores for the year ended 31st March 2009. The Capital Adequacy Ratio
of the Bank as on 31.03.2009 was 14.44% (Basel I) and 15.38% (Basel II) and its
networth exceeded Rs.400 crores as on that date. The Bank’s business growth rates
during the year 2008-09 far exceeded that of the banking industry.
The Bank is tech savvy and has deployed technology widely as an instrument for
enhancing the quality of customer service. It has introduced Centralised Banking
Solution (CBS) on the Flexcube Platform at all its branches for extending
Anywhere/Anytime/Anyhow banking to its clientele through multiple delivery
channels. The Bank has set-up a state-of-the-art Data Centre in Bangalore, to keep
the networked system operational round the clock. A Disaster Recovery Centre is
also operational at Trichur for meeting various contingencies.
The Bank lays stress on customizing services and personalizing relations. It has
introduced an International Debit Card through a tie-up with M/s Visa International
and has provided to its customers access free of cost to more than 30,000 ATMs in

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the country. The Bank has installed 73 networked ATMs thus far in centres of high
banking activity.
The Bank has introduced tele-banking and Internet banking at all branches. It is also
providing speedy cheque collection facilities to its constituents through Cash
Management Services (CMS) at all its branch locations.
The Bank has put in place Real Time Gross Settlement (RTGS) and National Electronic
Fund Transfer (NEFT) Systems to facilitate large value payments and settlements
in real time through on-line mode on a transaction-by-transaction basis.
The Bank has ventured into insurance business and is selling the products of M/s. Bajaj
Alliance Insurance Company Ltd., as their corporate agent. The Bank is also a
depository participant of NSDL (National Security Depository Limited) offering
Demat services through select branches.
With a view to making available value-added services to the NRIs, the Bank has set up
NRI Boutiques (Relationship Centres) at 9 locations in the State of Kerala and
Tamil Nadu. The Bank has also plans to open specialized NRI outlets with accent
on quality of service at potential locations. As at the end of March 2009, the Bank
had Rupee Drawing Arrangements with 8 Exchange Houses in the Middle East. For
fast money transfer, it has tied up with UAE Exchange & Financial Services for

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Xpress Money and Moneygram, Wallstreet Finance for Wallstreet instant cash and
Indusind Bank Limited for Zoha Inc. The Bank has also tied up with SBI Mutual
Fund, Birla Sunlife Mutual Fund and Principal PNB Asset Management Company
Pvt Ltd for selling their products.
On the socio-economic front, the Bank is a leading player in dispensation of Micro Credit
among Kerala-based Banks, both public and private. As at the end of March 2009,
the outstandings under micro credit were Rs.124.40 crores. This involvement is
part of the Bank’s objective to act as a catalyst for the economic prosperity of the
country. The Bank has recognized micro finance intervention as an effective tool
for poverty alleviation and has streamlined the linkage between the Bank and Self
Help Groups through nearly 130 branches. The Priority sector advances of the
Bank as at 31st March 2009 constituted 53.48% of Net Bank Credit well above the
RBI benchmark of 40%. Agricultural advances as a percentage of Net Bank Credit
was 21.40% as against the RBI norm of 18%.
DHAN LAXMI BANK

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Dhanlakshmi Bank Ltd is a private sector bank located in the city of Thrissur, Kerala.
The bank functions under the smart guidance of Mr. G.N. Bajpai and Mr. Amitabh
Chaturvedi. G.N. Bajpai is the chairman of the bank and Amitabh Chaturvedi is its
Managing Director and CEO.
Operating in full force mainly in Southern States of India
including Tamil Nadu, Karnataka, Andhra Pradesh and Kerala, the Dhanlakshmi
Bank was started with an initial investment of Rs.11, 000 only. In the year 1977, it
achieved a status of the Scheduled Commercial Bank.
Its remarkable performance in the field of banking services has
won it Reserve Bank of India's approval to launch 66 branches and 380 ATMs all
over India in 2009. With this massive expansion plan, the total count of the
customer outlets of Dhanlakshmi Bank Ltd will grow from 279 to 725. Besides, on
28th September 2009, it received an award for the best bank in the private sector.
The Dhanlakshmi Bank Ltd was opened with the clear mission
"To become a strong and innovative bank with integrity and social responsibility
and to maximize customer satisfaction and the satisfaction of its employees,
shareholders and the community".
On 31st March 2009, the bank did a business of Rs 8,212 crore inclusive of Rs
4,969 crore deposits and Rs 3,243 crore advances. With this the net profit of the
bank soared to Rs 57.45 crore for the year concluding on 31st March 2009.

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Branches & ATMs
Dhanalakshmi Bank boasts of a network of 181 branches and 26 Extension Counters,
which have been spread over the states of Kerala, Tamil Nadu, Karnataka, Andhra
Pradesh, Maharashtra, Gujarat, Delhi and West Bengal. At the same time, it has installed
72 networked ATMs in all those centers where high banking activity takes place. The
main aim behind this is to provide easy banking access to the clients.
Sometime back only, Dhanalakshmi Bank received Reserve Bank of India's nod for
opening 66 branches and 380 ATMs, across India, in 2009. With this, the total customer
outlets of Dhanalakshmi Bank will go up to 725, from the current 279. At the same time,
it has been allowed, by the RBI, to open 5 Regional Offices in Kerala, at
Thiruvananthapuram, Ernakulam, Thrissur, Palakkad and Kozhikode, apart from 2
Central Processing Centers at Thrissur and Hyderabad.
Financial Highlights
Till 31st March 2009, Dhanalakshmi Bank had serviced a business (subject to
audit) of Rs. 8212 crores. In this were included Deposits of Rs.4969 crores and
Advances of Rs. 3243 crores. In the nine-month period ending on 31st

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December 2008, the bank had made a profit of Rs. 35.20 crores, while, on the
same date, its Capital Adequacy ratio was 14.33 percent and the outstanding
amount under micro credit was Rs.130.55 crores.
Tech-Savvy Bank
Dhanalakshmi Bank is one of those financial institutions that have moved
ahead with the changing times. It has used technology widely throughout its
operations, with the aim of improving the quality of customer service. The
Centralised Banking Solution (CBS) on the Flexcube Platform, offered by the
bank in all of branches, allows its clients to reap the benefits of
Anywhere/Anytime banking, through multiple delivery channels. The 'Data
Centre' of Dhanalakshmi Bank, set up in Bangalore, keeps the networked
In keeping with the present times, Dhanalakshmi Bank has introduced tele-banking and
Internet banking for its clients, at all the branches. At the same time, it has
implemented centralized CMS software, with the CMS hub being located at the
corporate office in Thrissur. Real Time Gross Settlement (RTGS) and National
Electronic Fund Transfer (NEFT) Systems, assisting large value payments and
settlements in real time on-line mode on a transaction-by-transaction basis, are the
other tech-savvy services offered by the bank.

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Products & Services
Dhanalakshmi Bank, after its tie-up with M/s Visa International, has introduced an
International Debit Card for its clients. As a part of the effort, it has also joined
CASHNET - the first independent nation-wide shared ATM network in India, National
Financial Switch (ATM network) of the IDRBT - promoted by Reserve Bank of India
and Cash Tree. This has allowed its clients, access to more than 25,000 ATMs in India.
The bank has also ventured into life insurance (through M/s. MetLife India) & non-life
insurance (through M/s. Oriental Insurance Co).
Being a depository participant of NSDL (National Security Depository Limited),
Dhanalakshmi Bank offers Demat services as well, though through selected branches
only. The bank has set up NRI Boutiques (Relationship Centres) at 9 locations in Kerala
and has plans of opening specialized NRI outlets soon. The tie-ups with UAE Exchange
& Financial Services for Xpress Money and Moneygram, Wallstreet Finance for
Wallstreet instant cash and Indusind Bank Limited for Zoha Inc ensure fast money
transfer.

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INTRODUCTION TO DEMAT ACCOUNT
Stock exchanges are intricatly interwoven in the fabric of a nation’s economic life. A
stock exchange is a place where different kinds of securities are bought or sold. It is
an important part of capital market. The first Indian stock exchange was established
in Mumbai (1875). In stock exchanges, trade is done through only registered
members (brokers). The secondary market where all securities are traded is an
auction arena. Internet based trading also made an appearance in India which
eliminates need for a trading floor. The ministry of finance, The SEBI and the
governing board of stock exchange regulate the Indian stock exchanges and legal
framework provided by SEBI Act1992 and internal framework of rules, by laws
and regulations duly approved by Govt. of India. So, all work done in stock

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exchanges with probity and ethics. Stock exchange (Price) is said to be barometer
of economic and financial health of a Company. Now stock exchanges are well
developed.
Functions of Stock Exchanges
The stock exchange helps in mobilization and allocation of saving for industrialization
and economic development of country, which is a kind of capital formation.
The stock exchange provides liquidity on securities.
The stock exchange provides a platform for sale and purchase of securities at reasonable
and fair prices.
The stock exchange also protects the investor’s interest.
The stock exchange acts as the center of providing business information about enterprise
Whose securities are traded in stock exchange.
History, origin and Development of the Stock Exchange
The only stock exchange operation in 19th century was set up in Bombay and
Ahmedabad (1875&1894) respectively. These were organized as voluntary non-
profit making associations of brokers to regulate and protect their interests.

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Securities contracts (control) Act of 1925 used to regulate stock exchange trading
in B.S.E and ASE and both of these were recognized in 1927 and 1937
respectively.
In London stock exchange as on March1958 membership of stock exchange was
3,432 grouped into 434 firms. Other different stock exchanges were recognized and
registered under Co. Act, 1913.There were only nine recognized stock exchanges in
the country until 1981-82.
The OTCEI exchange is a co. incorporated under co. Act 1956 and recognized under
sec. 4 of securities contract (Regulation) Act 1956. In (co.’s Act, 1913) limited
liability co.’s, some are private and others public ltd. After partition, Lahore stock
exchange went into territory of Pakistan. Amritsar/LDH stock exchange came into
importance. (LSE discussed next).At present there are 23 recognized stock
exchanges in the country.
Bombay and Ahmedabad stock exchange were recognized but many
others, which were not recognized. Soon after it become a central object and a
committee headed by Shri R.D. GORWALA went into bill for securities
Regulation on the basis of this security contracts (Regd.) Act became in
1956.Mainly there are two exchanges NSE & BSE.
Who Benefit From Stock Exchange

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Investors, companies, brokers and economy receive various benefits from stock
exchange.
Moving Cause Of Change
Stock exchanges are changing rapidly, because of:
*Govt. regulation
*Economic evolution
*Dynamic society
Demat is also like a change, which is 90%, accepted by people. If changes are socially
and economically satisfactory then market can follow its own development pattern
like Dematerialization system adapted by stock market successfully. In book entry
clearing system, all kind of investors depositing their stock holdings with it and all
clearing transactions handled by only simple entry in the books, not actual
(physical) movement of securities.

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NEED OF THE STUDY
The need of the study arises because of the reason that a trainee must understand the
company, its achievements and tasks, products and services and also to collect
information
about its competitors, its products and services offered. So
that, after understanding and collecting information about
the organization and its competitors, a trainee will be able to
work well for the organization.
From the study I have learned very much, about the company as well as the strategy of
the customers, which helps me a lot at my working days.
SCOPE OF THE STUDY
1. This study would be useful to other students as a secondary data.
2. This study would be useful to form strategies according to perception of student
about more need to manager or entrepreneur.
OBJECTIVES OF THE STUDY
To analyze that what the level of customer as well as Broker when using demat
trading.

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To know about the awareness of people on demat trading.
To compare all banks services Demat account on the basis of secondary data.
To compare demat trading with physical trading.
RESEARCH DESIGN
Research design is the arrangement for condition for data collection and analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure.
A Research design is a master plan or model for the conduct of formal investigation. It is
blue print that it is fallowed in completing study. The research conducted by me is
a descriptive Research. This is descriptive in nature because study is focused on
fact finding investigation in a well structured form and is based on primary data.

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SOURCES OF DATA COLLECTION
⇒ PRIMARY SOURCE
⇒ SECONDARY SOURCE
PRIMARY DATA are those which are collected a fresh and for the first time thus
happen to be original in character. There are several methods of collecting primary
data, particularly in surveys and descriptive researchers. Important ones are:
1) Observation method
2) Interview method
3) Through questionnaires
4) Through schedules
5) Other methods which includes
a) Warranty cards
b) Pantry audits

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c) Consumer panels
d) Using mechanical devices
e) Distributive audits
Under this PRIMARY DATA COLLECTION, we used as QUESTIONNAIRE to collect
the data.
SECONDARY DATA are those which have already published by someone else and
which have already passed though the statistical process. There are normally two sources
of collecting secondary data:
1) PUBLISHED SOURCES
2) UN-PUBLISHED SOURCES
Under this study we used MAGAZINES and DATA THROUGH INTERNET SOURCE
to collect the data.
RESEARCH PLAN

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TYPE OF STUDY........
For completing my study we have gone for sample study because looking at the size of
population. And the time limitation it was not convenient for us to cover entire
population. Hence we have gone for sample study rather than census study.
SAMPLING PLAN
A Sample design is a definite plan for obtaining a sample from a given population. It
refers to the technique or the procedure that researcher would adopt in selecting
items to be inched in the sample i.e. the size of sample. Sampling plan is
determined before data are collected.
STEPS IN SAMPLING PLAN
1. SAMPLING FRAME
The list of sampling units from which sample is taken is called sampling frame. THE
Sample is taken from CT INSTITUTE.
2. SAMPLING SIZE--
Total sample size 50 investors & 50 brokers

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3. SAMPLING PROCEDURE
The selection of respondents were accordingly to be a right place at a right time and so
the sampling were quite easy to measure, evaluate and co-operative. It was
randomly area sampling method that attempts to obtain the sample of convenient
elements.
4. FIELD WORK
We have collected the data through medium caller questionnaire collecting the response
from 20 people in all. We had done our field work in many areas. We had done the
field work in many areas. We have started our project very first educating the
respondent about our entire project, and ask them to co-operate with us.
5. QUESTIONNAIRES
Through the questionnaire we were able to get an insight today need for more
entrepreneurs or manager all the quest ions mentioned in the questionnaires were
helpful to me in knowing the people.

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Limitations of the study
1. The time constraint was one of the major problems.
Any small size of 100 respondents (brokers as well as investors) may not be
representative of the universe.
The respondent bias might have crept in while filling the questionnaires.
In sample method there are also chance of error because in this each and every unit are
not considered and representative of real situation.
2. Extreme variability in MARKET.

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What's a demat account?
Demat refers to a dematerialised account.
Just as you have to open an account with a bank if you want to save your money, make
cheque payments etc, you need to open a demat account if you want to buy or sell
stocks.
So it is just like a bank account where actual money is replaced by shares.
You have to approach the DPs (remember, they are like bank branches), to open your
demat account.
Let's say your portfolio of shares looks like this: 40 of Infosys, 25 of Wipro, 45 of
HLL and 100 of ACC.
All these will show in your demat account.

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So you don't have to possess any physical certificates showing that you own these shares.
They are all held electronically in your account.
As you buy and sell the shares, they are adjusted in your account.
Just like a bank passbook or statement, the DP will provide you with periodic statements
of holdings and transactions.
Is a demat account a must?
Nowadays, practically all trades have to be settled in dematerialised form.
Although the market regulator, the Securities and Exchange Board of India (SEBI), has
allowed trades of upto 500 shares to be settled in physical form, nobody wants
physical shares any more.
So a demat account is a must for trading and investing.
Where do I begin?
Look for a DP to have an account with
Most banks are also DP participants, as are many brokers.

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You can choose your very own DP.
To get a list, visit the NSDL and CDSL websites and see who the registered DPs are.
A broker is separate from a DP. A broker is a member of the stock exchange, who buys
and sells shares on his behalf and on behalf of his clients.
A DP will just give you an account to hold those shares.
You do not have to take the same DP that your broker takes. You can choose your own.
But many brokers offer special incentives in the form of lower charges for opening demat
accounts with their DPs.
• Get your documents in place
Once you approach your DP, you will be guided through the formalities of opening an
account.
You must fill up an account opening form and sign an agreement with your DP.
The DP will ask for some documents as proof of your identity and address.
Check with them what they require. For instance, some may accept a driver's license,
others may not.
Here is a broad list (you won't need all of them though):
• PAN card
• Voter's ID

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• Passport
• Ration card
• Driver's license
• Photo credit card
• Employee ID card
• Bank attestation
• IT returns
• Electricity/ Landline phone bill
While they only ask for photocopies of the documents; they will need the originals
for verification.
You will have to submit a passport size photograph on which you sign across.
•
How many shares you need to have to open an account
When opening an account with a bank, you need a minimum balance.
Not so with a demat account. A demat account can be opened with no balance of shares.
And there is no minimum balance to be maintained either. You can have a zero balance
in your account.

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•
What will it cost?
The charges for account opening, annual account maintenance fees and transaction
charges vary between DPs. To get a comparative idea, visit the websites
of NSDL and CDSL.
•
Can I nominate?
Sure. You can nominate whoever you like by filling up the nomination details in the
account opening form.
This is to enable the nominee to receive the securities after the death of the holder of the
demat account.
• All set?
When you open an account, the DP will allot a unique BO ID (Beneficial Owner
Identification) Number, which you need to quote for all future transactions.
If you want to sell your shares, you need to place an order with your broker and give a
'Delivery Instruction' to your DP.
The DP will debit your account with the number of shares sold. You will receive the
payment from your broker.

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Advantages of Demat
The demat account reduces brokerage charges, makes pledging/hypothecation of shares
easier, enables quick ownership of securities on settlement resulting in increased
sof public issue allotments.
It also helps you avoid bad deliveries caused by signature mismatch, postal delays and
loss of certificates in transit. Further, it eliminates risks associated with forgery,
counterfeiting and loss due to fire, theft or mutilation. Demat account holders can also
avoid stamp duty (as against 0.5 per cent payable on physical shares), avoid filling
up of transfer deeds, and obtain quick receipt of such benefits as stock splits and
bonuses.
Indian Market Scenario
Indian capital market has seen unprecedented boom in its activity in the last 15 years in
terms of number of stock exchanges, listed companies, trade volumes, market
intermediaries, investor population, etc. However, this surge in activity has brought
with it numerous problems that threaten the very survival of the capital markets in
the long run, most of which are due to
the large volume of paper work involved and paper based trading, clearing and
settlement.

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Until the late eighties, the common man kept away from capital market and thus the
quantum of funds mobilized through the market was meager. A major problem,
however, continued to plague the market. The Indian markets were drowned in
shares in the form of paper and hence it was problematic to handle them. Fake and
stolen shares, fake signatures and signature mismatch, duplication and mutilation of
shares, transfer
problems, etc. The investors were scared and were under compensated for the risk borne
by them. The century old system of trading and settlement requires handling of
huge volumes of paper work. This has made the investors, both retail and
institutional, wary of entering the capital market. However, lack of modernization
become a hindrance to growth and resulted in creation of cumbersome procedures
and paper work.
However, the real growth and change occurred from mid-eighties in the wake of
liberalization initiatives of the Government. The reforms in the financial sector
were envisaged in the banking sector, capital market, securities market regulation,
mutual funds, foreign investments and Government control. These institutions and
stock exchanges experienced that the certificates are the main cause of investors`
disputes and arbitration cases. Since the paper work was not matching the rapid

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growth so there was a need for a better system to ensure removal of these
impediments.
Government of India decided to set up a fully automated and high technology based
model exchange that could offer screen-based trading and depositories as the
ultimate answer to all such reforms and eliminate various bottlenecks in the capital
market, particularly, the clearing and settlement system in stock exchanges.[1] A
depository in very simple terms is a pool of pre-verified shares held in electronic
mode which offers settlement of transactions in an efficient and effective way.
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.
Demat Benefits
The benefits are enumerated as follows:
. It’s a safe and convenient way to hold securities

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. Immediate transfer of securities is there
. There is no stamp duty on transfer of securities
. Elimination of risks associated with physical certificates such as bad delivery, fake
securities, delays, thefts etc
. There is a major reduction in paperwork involved in transfer of securities, reduction in
transaction cost etc
. No odd lot problem, even one share can be sold thus there is an advantage
. Change in address recorded with DP gets registered with all companies in which
investor holds securities electronically eliminating the need to correspond with each
of them separately;
• Transmission of securities is done by DP eliminating correspondence with companies;
• Automatic credit into demat account of shares, arising out of
bonus/split/consolidation/merger etc.
• Holding investments in equity and debt instruments in a single account.
Benefit to the Company

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The depository system helps in reducing the cost of new issues due to less printing and
distribution cost. It increases the efficiency of the registrars and
transfer agents and the Secretarial Department of the company. It provides better
facilities for communication and timely services with shareholders, investor etc.
Benefit to the Investor The depository system reduces risks involved in holding physical
certificated, e.g., loss, theft, mutilation, forgery, etc.It ensures transfer settlements
and reduces delay in registration of shares. It ensures faster communication to
investors. It helps avoid bad delivery problem due to signature differences, etc.It
ensures faster payment on sale of shares. No stamp duty is paid on transfer of
shares. It provides more acceptability and liquidity of securities.
Benefit to Brokers The depository system reduces risk of delayed settlement. It ensures
greater profit due to increase in volume of trading. It eliminates chances of forgery
– bad delivery. It increases overall of trading and profitability.It increases
confidence in investors.
Demat conversion
Converting physical holding into electronic holding (dematerialising securities) In order
to dematerialise physical securities one has to fill in a DRF (Demat Request Form)
which is available with the DP and submit the same along with physical certificates
one wishes to dematerialise. Separate DRF has to be filled for each ISIN Number.

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The complete process of dematerialisation is outlined below: •Surrender certificates
for dematerialisation to your depository participant. •Depository participant
intimates
Depository of the request through the system. •Depository participant submits the
certificates to the registrar of the Issuer Company. •Registrar confirms the
dematerialisation request from depository. •After dematerialising the certificates,
Registrar updates accounts and informs depository of the completion of
dematerialisation. •Depository updates its accounts and informs the depository
participant. •Depository participant updates the demat account of the investor.
Demat Options
Banks score over others Around 200 “depository participants” (DPs) offer the demat
account facility. A comparison of the fees charged by different
DPs are detailed below. But there are three distinct advantages of having a demat account
with a bank — quick processing, accessibility and online transaction. Generally,
banks credit your demat account with shares in case of purchase, or credit your
savings accounts with the proceeds of a sale on the third day. Banks are also
advantageous because of the number of branches they have. Some banks give the
option of opening a demat account in any branch, while others restrict themselves

41

to a select set of branches. Some private banks also provide online access to the
demat account. So, you can check on your holdings, transactions and status of
requests through the net banking facility. A broker who acts as a DP may not be
able to provide these services.
Fees Involved
There are four major charges usually levied on a demat account: Account opening fee,
annual maintenance fee, custodian fee and transaction fee. All the charges vary
from DP to DP.
Account-opening fee
Depending on the DP, there may or may not be an opening account fee. Private Banks,
such as ICICI Bank, HDFC Bank and UTI Bank, do not have one. However,
players such as Globe Capital, Karvy Consultants and the State Bank of India do
so. But most players levy this when you re-open a demat account, though the Stock
Holding Corporation offers a lifetime account opening fee, which allows you to
hold on to your demat account over a long period. This fee is refundable.
Annual maintenance fee
This is also known as folio maintenance charges, and is generally levied in advance.

42

Custodian fee
This fee is charged monthly and depends on the number of securities (international
securities identification numbers — ISIN) held in the account. It generally ranges
between Rs 0.5 to Rs 1 per ISIN per month. DPs will not
charge custody fee for ISIN on which the companies have paid one-time custody charges
to the depository.
Transaction fee
The transaction fee is charged for crediting/debiting securities to and from the account on
a monthly basis. While some DPs, such as SBI, charge a flat fee per transaction,
HDFC Bank and ICICI Bank peg the fee to the transaction value, subject to a
minimum amount. The fee also differs based on the kind of transaction (buying or
selling). Some DPs
charge only for debiting the securities while others charge for both. The DPs also charge
if your instruction to buy/sell fails or is rejected. In addition, service tax is also
charged by the DPs.
In addition to the other fees, the DP also charges a fee for converting the shares from the
physical to the electronic form or vice-versa. This fee varies for both demat and

43

remat requests. For demat, some DPs charge a flat fee per request in addition to the
variable fee per certificate, while others charge only the variable fee.
For instance, Stock Holding Corporation charges Rs 25 as the request fee and Rs 3 per
certificate as the variable fee. However, SBI charges only the variable fee, which is
Rs 3 per certificate. Remat requests also have charges akin to that of demat.
However, variable charges for remat are generally higher than demat. Some of the
additional features (usually offered by banks) are as follows.Some DPs offer a
frequent trader account, where they charge frequent traders at lower rates than the
standard charges.Demat account holders are generally required to pay the DP an
advance fee for each account which will be adjusted against the various service
charges. The account holder needs to raise the balance when it falls below a certain
amount prescribed by the DP. However, if you also hold a savings account with the
DP you can provide a debit authorisation to the DP for paying this charge.Finally,
once you choose your DP, it will be prudent to keep all your accounts with that DP,
so that tracking your capital gains liability is easier. This is because, for calculating
capital gains tax, the period of holding will be determined by the DP and different
DPs follow different methods.

44

Opening an account
Steps involved in opening a demat account First an investor has to approach a DP and fill
up an account opening form. The account opening form must be supported by
copies of any one of the approved documents to serve as proof of identity (POI)
and proof of address (POA) as specified by SEBI. Besides, production of PAN card
in original at the time of opening of account has been made mandatory effective
from April 1, 2006.
All applicants should carry original documents for verification by an authorized official
of the depository participant, under his signature. Further, the investor has to sign
an agreement with DP in a depository prescribed standard format, which details
rights and duties of investor and DP. DP should provide the investor with a copy of
the agreement and schedule of charges for their future reference. The DP will open
the account in the system and give an account number, which is also called BO ID
(Beneficiary Owner Identification number). The DP may revise the charges by
giving 30 days notice in advance. SEBI has rationalised the cost structure for
dematerialisation by removing account opening charges, transaction charges for
credit of securities, and custody charges vide circular dated January 28, 2005.
Further, SEBI has vide circular dated November 9, 2005 advised that with effect
from January 9, 2006, no charges shall be levied by a depository on DP and
consequently, by a DP on a Beneficiary Owner (BO) when a BO transfers all the
securities lying in his account to another branch of the same DP or to another DP of

45

the same depository or another depository, provided the BO Account/s at transferee
DP and at transferor DP are one and the same, i.e. identical in all respects. In case
the BO Account at transferor DP is a joint account, the BO Account at transferee
DP should also be a joint account in the same sequence of ownership.
Disadvantages of Demat
The disadvantages of dematerialization of securities can be summarised as follows:
Trading in securities may become uncontrolled in case of dematerialized securities.
It is incumbent upon the capital market regulator to keep a close watch on the trading in
dematerialized securities and see to it that trading does not act as a detriment to
investors.
The role of key market players in case of dematerialized securities, such as stock-brokers,
needs to be supervised as they have the capability of manipulating the market.
Multiple regulatory frameworks have to be confirmed to, including the Depositories Act,
Regulations and the various By-Laws of various depositories.

46

Additionally, agreements are entered at various levels in the process of dematerialization.
These may cause anxiety to the investor desirous of simplicity in terms of
transactions in dematerialized securities.
However, the advantages of dematerialization outweigh its disadvantages and the
changes ushered in by SEBI and the Central Government in terms of compulsory
dematerialization of securities is important for developing the securities market to a
degree of advancement. Freely traded securities are an essential component of such
an advanced market and dematerialization addresses such issues and is a step
towards the advancement of the market.
Physical Trading
Indian investor community has undergone sea changes in the past few years. India now
has a very large investor population and ever increasing volumes of trades.
However, this continuous growth in activities has also increased problems
associated with stock trading.
Most of these problems arise due to the intrinsic nature of paper based trading and
settlement, like theft or loss of share certificates. This

47

System requires handling of huge volumes of paper leading to increased costs and
inefficiencies. Risk exposure of the investor also increases due to this trading in
paper.
The risks involved are a follows:
• Delay in transfer of shares.
• Possibility of forgery on various documents leading to bad
Deliveries, legal disputes etc.
• Possibility of theft of share certificates.
• Prevalence of fake certificates in the market.
• Mutilation or loss of share certificates in transit.
The physical form of holding and trading in securities also acts as a
Bottleneck for broking community in capital market operations.
The introduction of NSE and BOLT has increased the reach of capital market manifolds.
The increase in number of investors participating in the capital market has

48

increased the possibility of being hit by a bad delivery. The cost and time spent by
the brokers for rectification of these bad
Deliveries tend to be higher with the geographical spread of the clients. The increase in
trade volumes lead to exponential rise in the back office operations thus limiting
the growth potential of the broking members.
The inconvenience faced by investors (in areas that are far flung and away from the main
metros) in settlement of trade also limits the opportunity for such investors,
especially in participating in auction trading. This has made the investors as well as
broker wary of Indian capital market. In this scenario Dematerialized trading is
certainly a welcome move.
DEPOSITARY SYSTEM
Your money may be held in the form of liquid cash at your home or may be deposited in
a bank. The bank holds your funds in the electronic form and subsequently debits
or credits the account, depending on your issuance of cheques or deposit ofcheques.
The advantages of safety and convenience of dealing with a bank overweigh the
reasons for holding liquid cash in your home. Your financial assets such as Equity
Shares may be compared to the above example. You may hold physical share
certificates in your home and be exposed to the various risks of lack of safety,
mutilation, loss etc.Alternatively; you may deposit your shares in an organization
called a Depository, which holds your shares in the electronic form.

49
A Depository is a securities "bank," where dematerialized physical securities are held in
custody, and from where they can be traded. This facilitates faster, risk-free and
low cost settlement. Thus, a Depository is akin to a bank and performs activities
similar in nature.
Comparison of depositary with bank
Depository functions like a securities bank, where the dematerialized physical securities
are traded and held in custody. This facilitates faster, risk free and low cost
settlement. Depository is much like a bank and performs many activities that are
similar toa bank. Following table compares the two.
Bank Depository
Holds funds in accounts Holds securities in account
Transfers funds between accounts Transfers securities between
accounts
Transfers without handling money Transfers without handling
securities
Safekeeping of money Safekeeping of securities

50

COMPARISON OF DEPOSITARY SYSTEM WTH PHYSICAL
SHARE SYSTEM
 The risk of loss, mutilation is common for physical certificates and completely
removed in electronic shares.
Handling of a large number of physical certificates is ended in the Depository Mode.
In the electronic segment, there are no bad delivers as in physical segment.
There is no stamp duty payable in electronic shares compared to the duty of 0.50% in
the physical segment while transferring ownership.
In loans against shares, banks usually charge a lower interest rate and margin money
than in the physical share certificates.
Settlements in the Stock Exchanges have commenced in the electronic segment

51
HDFC demat
HDFC BANK is one of the leading Depository Participant (DP) in the country with over
8 Lac demat accounts.
HDFC Bank Demat services offers you a secure and convenient way to keep track
of your securities and investments, over a period of time, without the hassle of
handling physical documents that get mutilated or lost in transit.
HDFC BANK is Depository particpant both with -National Securities Depositories

52

Limited (NSDL) and Central Depository Services Limited (CDSL).
FEATURES & BENIFITS
As opposed to the earlier form of dealing in physical certificates with delays in
transaction, holding and trading in Demat form has the following benefits:
Settlement of Securities traded on the exchanges as well as off market transactions.
Shorter settlements thereby enhancing liquidity.
Electronic credit in public issue.
Auto Credit of Rights / Bonus / Public Issues / Dividend credit through ECS.
Auto Credit of Public Issue refunds to the bank account.
No stamp duty on transfer of securities held in demats form.
No concept of Market Lots.
Change of address, Signature, Dividend Mandate, registration of power of attorney,
transmission etc. can be effected across companies held in demat form by a
single instruction to the Depository Participant (DP).
Holding / Transaction details through Internet / email.
HSBC Demat Account
As someone who's interested in regular trading, you need a well-resourced account to
match your needs in a dynamic market scenario. As a leading depository
participant, we offer you HSBC Demat Accounts, armed with an entire range of

53

conveniences specially designed to make your money work harder.
Know more
•
Features & Benefits
Demat Account Features & Benefits
HSBC Demat Accounts are especially designed to give you the edge in the stock markets
today
You can purchase, hold and sell shares in electronic form
Get your Holding statement every 3 months, showing current portfolio of shares
Avail of an Overdraft up to Rs.20 lakhs available against Demat shares through Asset
#
Link
As an NRI, you can easily dematerialise your portfolio of shares in India with us*
If you already hold an HSBC Current/Savings account, there be no account opening
charges and no minimum balance requirements for your Demat Account
You can save on transaction costs with quick transfers
Say goodbye to risk of loss, theft or mutilation of shares
Now, stop worrying about bad deliveries, forgeries and duplicate share certificates

54
HSBC Demat Account
Features / Services Charges
Annual Charges INR 750 per annum for customers

who maintain a Savings/Current
account with HSBC in India.**
Market Trade / Off Market Trade/Inter Depository Transaction
Purchase Free
Sale Upto 10 ISIN sale transactions per
month* - Free;
INR 100 per ISIN per transaction
thereafter
Custody Fee Free
Pledge
(a) HSBC
- Creation Free
- Closure Free
- Invocation Free
(b) Third Party
- Creation INR 50 per instruction
- Closure INR 50 per instruction
- Invocation INR 50 per instruction
Dematerialization Free
Dematerialization INR 100 per certificate
Ad hoc Statements Mailed Abroad INR 50 per statement

55

Ad hoc Statements INR 25 per statement
ICICI bank demat
Account Opening
You can download the account opening forms from the site and submit them at
our branches offering Demat services.
You can also visit the branches offering Demat service for opening the
Demat Account
There is no fee for opening a DP account with ICICI Bank. However, a nominal fee
towards services is levied as per our tariff. Opt forStandard Rate Card or
Frequent Trader Rate Card depending on your trading
Volume. Or, if you wish to hold your Bonds in Demat form you can choose Bond Rate
Card.
Account Opening Form to Open Securities Account

Resident Non Corporate Account Opening Form
Resident Corporate Account Opening Form

56

Repatriability
A. Repatriable Demat Account
Repatriable funds (i.e. those which can be taken abroad) need to be kept in
a separate bank account, i.e. NRE Bank account. Typically, funds
brought in from abroad are permitted in such an account. Investments
made from such funds can be repatriated, i.e. proceeds from sale or
otherwise from such investments can be taken abroad. Such
investments are maintained in a Repatriable Demat account.
B. Non-repatriable Demat Account
Non-repatriable funds (i.e. those which cannot be taken abroad) must

be kept separate from repatriable funds in a separate bank account i.e.
NRO Bank account. Investments made from such funds cannot be
repatriated, i.e. proceeds from sale or otherwise from such investments
cannot be taken abroad. Such investments are maintained in a Non-
Repatriable Demat account. Money once transferred from NRE
account to NRO account loses its repatriability and hence, cannot be
transferred back to NRE account.
Mode of Investment
A. Portfolio Investment Scheme (PINS)

57
Portfolio Investment Scheme (PINS) is a scheme of the Reserve Bank of
India (RBI) under which the 'Non Resident Indians (NRI's)' and 'Person of Indian Origin
(PIOs)' can purchase and sell shares and convertible debentures of Indian
Companies on a recognised stock exchange in India by routing all such purchase/
sale transactions through their account held with a designated Bank Branch. The
designated Bank maintains a record of all investments done under PINS (PINS
portfolio).
B. Non - PINS
Any investment other than under PINS is Typically, this includes:
Subscription to Primary market offerings (IPOs)
Investments made when resident in India.
Investments in Mutual funds
Investments in derivatives
Gifts and Inheritance

58

Deciding Combination
You may have to open demat accounts of a specific combination if you already
hold physical shares in that combination. Physical shares can be converted into
electronic form in your demat account by submitting the certificates along with a
demat request form. You should also open the required combination under the
correct type of demat account:
PINS NRE - For shares acquired earlier under PINS on repatriation basis
PINS NRO - For shares acquired earlier under PINS on non-repatriation basis
Non-PINS NRE - For shares acquired earlier other than under PINS on
repatriation basis
Non-PINS NRO - For shares acquired earlier other than under PINS on non-
repatriation basis and also when 'Resident' in India
SBI Demat Services:
Overview
SBI offers Demat services that would ensure free transferability of securities with speed,
accuracy and security.
SBI is Depository Participant both with -National Securities Depositories Limited

59

(NSDL) and Central Depository Services Limited (CDSL) through more than 1000
branches.
Features & Benefits
As opposed to the earlier form of dealing in physical certificates with delays in
transaction, holding and trading in Demat form has the following benefits:
Account Maintenance & Safe custody: Facilitates Maintaining Security
Balance in electronic form
Dematerialization: Facilitates converting physical share certificate into electronic
balances.
Rematerialization: Facilitates converting the electronic balances to physical (share
certificate) form.
Account Transfers: Facilitates delivery/receipt of electronic balances consequent to
market / off-market trades.
Pledge/Hypothecation: Facilitates blocking securities balance of borrowers in
favour of lenders for obtaining Loans / advances against shares.

60

Initial Public offer: Facilitates faster and direct credit of security balances into DP
account on allotment through public issue of companies
Disbursement of corporate benefits: Facilitates faster and direct credit of
security balance into DP account on account of non-monetary corporate benefits as
bonus and rights issues.
Security Lending: Facilitates earning extra income on your dematerialized holdings
by the way of securities lending.
In fact what makes scripless holding in SBI DP account most attractive is the total ease of
operation.
Once you open your account, you can easily convert your physical holdings to
paperless form by surrendering your share certificate together with a Demat request
form. Thereafter, on selling / purchasing securities, you only need to give an
appropriate instruction to effect settlement.

61
DATA ANALYSIS AND INTERPETATION
To know the perception of brokers and investor’s about the Demat trading well-designed
questionnaires were supplied to 50 brokers and 50 investors. Some of them were

62

personally interviewed. All these have been explained with the help of graphs in the
following pages: -
Broker’s Perception
Q1:- Is Demat trading increasing volume of stock trading?

63
Yes (%) No (%)

85 15
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Increase vol.of Not increase in
trade vol of trade
INTERPRETATION
The question has got the favorable response. In other way it can be said that about 85%
brokers gave answers in yes. So demat trading greatly helpful to increase volume of
stock trading.
Q2:- Is the Demat Trading helpful in reducing the communication Gap?

64
Accept (%) Don’t accept (%)

55 45
60
50
40
30
20
10
0
Yes No
INTERPRETATION
The question has got mixed views of the brokers 55% brokers accept, that demat trading
helps in reducing communication Gap, but 45% does not accept this viewpoint
because for them lack of computer knowledge is the reason for communication gap.
Q3:-Is there Limitation of demats trading?

65
High capital outlay (%) Less interest base (%) Serialisation (%)
50 40 10
50
45
40
35
30
25
20
15
10
5
0
high capital less interset serialisation
rate
INTERPRETATION
In limitation of demat trading 50% brokers say that the basic limitation of demat is high
capital outlay and 40% are in the view of less internet base and rest 10% are in the
opinion of serialization of internet system. Their limitation restricts the area of
Demat.

66

Q4:- Are you trading with Demat?
Yes (%) No (%)

90 10
Yes
No
INTERPRETATION
90%brokers has given answer to this question ‘yes’ because some type of securities is
restricted to trade in Demat form only. So only 10% brokers used physical trading.
Q5:- Is the Demat trading is better than physical trading?

67
Better Demat Trading (%) Better Physical Trading (%)

90 10
Better Demat Trading

Better Physical Trading
INTERPRETATION
90% brokers have favored Demat system.10 % brokers have not supported to Demat
system because they think it is not reliable.
Q6:- Do you have any experience in the market about demat trading?

68

0 to 5 year Exp. 5 to 10 year Exp. 10 & above year Exp.
10 30 60
0 to 5 year
5 to 10
10 & above
INTERPRETATION
While analyzing the experience of brokers in stock market, it was found that 60% of
brokers have 10 or more years experience in stock exchange, 30% brokers have
experience of 5- 10 years in the market and rest 10% brokers have experience of
less than five years.

69
INVESTORS PERCEPTION
Q1:- Awareness of Demat trading?
Aware (%) Not aware (%)

90 10
Aware
Not Aware
INTERPRETATION
90% investor’s are aware of Demat trading but still 10% are those who do not know
what Demat Trading is. So future of Demat trading depends on the awareness of
the investors.

70
Q2:- Will demat trading benefit the investors?
Beneficial (%) Against (%) Can’t say (%)

80 10 10
Beneficial
Against
Can't Say
INTERPRETATION
80% investors feel that it will beneficial, but 10% are against the Demat trading and 10 %
respondent does not have any opinion regarding it.

71

Q3:-Which type of trading is better and economical?
Demat (%) Physical (%)

90 10
Demat
Physical
INTERPRETATION
95% respondent gave demat trading first preference. 5% are preferred
physical.

72
Q4:-Why do you go for Demat trading?
To avoid risk (%) Compulsory (%)

80 20
To Avoid Risk
Compulsary
INTERPRETATION
80% of the investors feel that they are using demat trading to avoid risk and to save
time. But 20% investors are of the view that it is compulsion.

73
Q5:- In which bank do you have DP account?
LSESec.LTD (%) HDFC & ICICI BANKS (%)

90 10
LSESec.LTD
icici & hdfc
INTERPRETATION
90% investors having response that their DP account going on in the LSE Sec. LTD.
because of quickness and good deliveries and 10% are those who are having
accounts in others like HDFC bank and ICICI bank etc.

74
FUTURE PROSPECTS, SUGGESTIONS AND CONCLUSION
In India demat trading have a very bright future. Demat trading have number of
advantages. The demat is adopted by the investors & brokers, that is between 90%-
99 %( approx.) But not 100%.
According to me,” HSBC provide the best for demat and providing the best features like:-
You can purchase, hold and sell shares in electronic form

Get your Holding statement every 3 months, showing current portfolio of shares
Avail of an Overdraft up to Rs.20 lakhs available against Demat shares through Asset
Link#
As an NRI, you can easily dematerialise your portfolio of shares in India with us*
If you already hold an HSBC Current/Savings account, there be no account opening
charges and no minimum balance requirements for your Demat Account
You can save on transaction costs with quick transfers
Say goodbye to risk of loss, theft or mutilation of shares
Now, stop worrying about bad deliveries, forgeries and duplicate share certificates
If demat process will overcome all limitations, then there will be a possibility that demat
trading will be used by all investors & brokers. In future all the shares trading will
be in demat form because there are everyday new innovations. If anyone did not
accept new inventions then he will doom to fail.

75
FINDINGS
1. DLB is having good brand image in the minds of customers.
2. Most of the customers are not aware of the products of DLB Demat service.
3. The awareness levels among investors regarding Demat account and related
services are moderate.
4. Online share trading and Demat services are considered to be a convenience
factor.
5. The investors are mainly influenced to involve in online trading on their personal
choice as they are rational, well - informed and decisive.
6. Television and Internet are the most important sources of information for the
investors regarding Demat services.

76
SUGGESTIONS FOR BRIGHT FUTURE
Behave in ethical manner and more & more transparent transactions.
Awareness of demat:- If SEs want that demat more & more used by investors then
there are urgent need to aware peoples through seminars and other ways.
Introduced confidence in invertors: - There is need to increase investor’s
confidence in demats system through their services.
Remove hesitation: - People think that they will not understand the tuff procedure of
demats. But DPs can helps to remove this hesitation by providing them knowledge
about the system.
DPs help to reduce risk by becoming reliable: - If DPs will provide their
services in proper manner then there will be less risk, and it leads to more use of
demat.
Adequate safeguard:- Every depository have to be established proper safeguard,
which shows that if any problem arise then invertors can easily get the remedy.
Prompt relief: - NSDL must have some arrangements for investor’s grievances.
Improve liquidity: - There is no any doubts that demat improve liquidity as
compared to physical system. But still there is some space for improvement. Ethics

77

and transparency: - Every depository, DPs and other related parties should behave
in ethical manner and more & more transparent transactions.
Concern for the investors: - Depositories must have to show concern for their
investors and should provide them all benefits and services.
CONCLUSION-
If depositories consider all the above suggestions then customers will be highly satisfied
and will use demat. So, last but not least customer satisfaction is must for success
of demats. However Customers are satisfied, but there is a need for improvements.
So customer’s satisfaction level is neither too bad nor too satisfactory. SEBI, DP
Act 1996 should make some amendments to increase level of customer satisfaction.
It is coherent to say that

Dematerialization is a positive process which mobilizes and channelizes the savings of
investors into the development of the industry and thereby the entire economy. Therefore
the investors must be made aware of these benefits that they will derive on usage of the
services and thereby promote the development of online trading by moving in the right
direction.

78
WEBSIDES
www.scribd.com
www.docstore.com
Www. demataccount.com
www.google.com
www.angelbrocking.com
www.online.citibank.co.in
www.sharemarketbasics.com
www.hdfcbank.com
www.traderji.com

79

JOURNALS
THE ECONOMIC TIMES
THE TIMES OF INDIA

80
Broker’s Perception
Is Demat trading increasing volume of stock trading?

81

Yes ( ) no ( )
Is the Demat Trading helpful in reducing the communication Gap?
Yes ( ) no ( )
Is there Limitation of demats trading?
High Capital Outlay ( ) Less Interest Base ( )
Serialization ( )
Are you trading with Demat?
Yes ( ) no ( )
Is the Demat trading is better than physical trading?
Better Demat Trading ( )
Better Physical Trading ( )
Do you have any experience in the market about demat trading?
0 To 5 year exp. ( ) 5 To 10 year exp. ( )
10 & Above ( )

82
INVESTORS PERCEPTION
Awareness of Demat trading?
Aware ( ) Not Aware ( )
Will demat trading benefit the investors?
Beneficial ( ) Against ( )
Can’t Say ( )
Which type of trading is better and economical?
Demat ( ) Physical ( )
Why do you go for Demat trading?
To Avoid Risk ( ) Compulsory ( )
In which bank do you have DP account?
LSESec.LTD ( ) HDFC & ICICI Banks ( )

83
PROFILE OF THE RESPODENT
NAME : -- __________________________
GENDER : -- MALE ( ) FEMALE ( )
AGE : -- ___________________________
OCCUPATION : -- ___________________________
QUALIFICATION : - ____________________________
THANKS FOR PARTICIPATING IN THE SERVEY

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1

A PROJECT REPORT ON DEMAT

A project Report submitted in partial fulfillment of the requirements

PUNJAB TECNICALUNIVERSITY, JALANDHAR

CT INSTITUTE OF MANAGEMENT STUDIES, SHAHPUR, JALANDHAR

A PROJECT REPORT ON DEMAT

practical training is provided to management students to expose them to the actual

working environment of any organization. Such training provides a framework of

purpose is to introduce the rural public with the company.

CT INSTITUTE OF MANAGEMENT STUDIES, SHAHPUR, JALANDHAR

A PROJECT REPORT ON DEMAT

deal with nationalized banking i.e. DHANLAXMI BANK.

in a reputed organization.”DHANLAXMI BANK ‘’ is also one of the reputed

hours, which helped me to do my project in a right way and in right direction.

process and giving me valuable insight into the account.

I am obliged them for cooperation during the internship. My increased spectrum of

has helped me to absorb relevant and high quality information.

CT INSTITUTE OF MANAGEMENT STUDIES, SHAHPUR, JALANDHAR

A PROJECT REPORT ON DEMAT

have been possible/complete.

MBA III rd Semester

original work done by me.

CT INSTITUTE OF MANAGEMENT STUDIES, SHAHPUR, JALANDHAR

A PROJECT REPORT ON DEMAT

CT INSTITUTE OF MANAGEMENT STUDIES, SHAHPUR, JALANDHAR

A PROJECT REPORT ON DEMAT

changing business environment.

I, SARABMEET had done my project in DHANLAXMI BANK which is a leading Bank

in Punjab. The main objective of my project was to “Demat Account”.

each level highlighting the requirements to be trained.

games which help the trainees in feeling relaxed and refreshed.

them was also different.

CT INSTITUTE OF MANAGEMENT STUDIES, SHAHPUR, JALANDHAR

A PROJECT REPORT ON DEMAT

2 Need, scope, Objectives and Methodology of the Study 17

4 Analysis, findings and suggestions of the study 47

CT INSTITUTE OF MANAGEMENT STUDIES, SHAHPUR, JALANDHAR

A PROJECT REPORT ON DEMAT

CT INSTITUTE OF MANAGEMENT STUDIES, SHAHPUR, JALANDHAR

A PROJECT REPORT ON DEMAT

Dhanalakshmi Bank was incorporated on 14th November 1927 by a group of public

spirited entrepreneurs at Thrissur, the cultural capital of Kerala with a capital of

Maharashtra, Gujarat, Delhi and West Bengal.

branches across the country, 5 Regional Offices in Kerala at Thiruvananthapuram,

Ernakulam, Thrissur, Palakkad and Kozhikode and 2 Central Processing Centers

CT INSTITUTE OF MANAGEMENT STUDIES, SHAHPUR, JALANDHAR

A PROJECT REPORT ON DEMAT

The Bank serviced a business of Rs.8212 crores as on 31.03.2009 comprising deposits of

enhancing the quality of customer service. It has introduced Centralised Banking

Anywhere/Anytime/Anyhow banking to its clientele through multiple delivery

also operational at Trichur for meeting various contingencies.

CT INSTITUTE OF MANAGEMENT STUDIES, SHAHPUR, JALANDHAR

A PROJECT REPORT ON DEMAT

providing speedy cheque collection facilities to its constituents through Cash

Management Services (CMS) at all its branch locations.

in real time through on-line mode on a transaction-by-transaction basis.

depository participant of NSDL (National Security Depository Limited) offering

Demat services through select branches.

NRI Boutiques (Relationship Centres) at 9 locations in the State of Kerala and

CT INSTITUTE OF MANAGEMENT STUDIES, SHAHPUR, JALANDHAR

A PROJECT REPORT ON DEMAT

Pvt Ltd for selling their products.

RBI benchmark of 40%. Agricultural advances as a percentage of Net Bank Credit

Sarab's Project

Sarab's Project