STOCK HOLDING CORPORATION OF INDIA LIMITED

A Project Submitted to
University of Mumbai for partial completion of the degree of
Bachelor of Banking and Insurance
Under the Faculty of Commerce

By
SINGH ICHCHHA NOHAR
Roll no: 83

Under the guidance of

PROF. DIPTI PATIL

Vidyavardhini’s
Annasaheb Vartak College of Arts,
Kedarnath Malhotra College of Commerce,
E.S. Andrades College of science,
Vasai (West), Dist. Palghar, Maharashtra – 401209

March 2021
 Vidyaavardhini’s
Annasaheb Vartak College of Arts,

Kedarnath Malhotra College of Commerce,

E.S. Andrades College of science,

Vasai (West), Dist. Palghar, Maharashtra – 401209

CERTIFICATE
This is to certify that Ms. Singh Ichchha Nohar has worked and duly
completed her/his Project work for degree of B.Com (Banking and
Insurance) under the faculty of Commerce in the subject of Project Work and
her/his project is entitled, ‘STOCK HOLDING CORPORATION OF INDIA
LIMITED’ under my supervision.

I further certify that the entire work has been done by the learner under my
guidance and that no part of it has been submitted previously for any Degree or
Diploma of any University.

It is her own work and facts reported by her personal findings and investigation.

PROF. DIPTI PATIL

Internal Examiner

Date of Submission: External Examiner

 DECLARATION

I, the undersigned Ms. Singh Ichchha Nohar here by, declare that the work
embodied in this project work titled, ‘STOCK HOLDING CORPORATION
OF INDIA LIMITED’ forms my own contribution to the research work
carried out under the guidance of Prof. DIPTI PATIL is a result of my own
research work and has not been previously submitted to any other University.

Whenever reference has been made to previous works of others, it has been
clearly indicated as such and included in bibliography.

I, here by further declare that all information of this document has been
obtained and presented in accordance with academic rules and ethical conduct.

SINGH ICHCHHA NOHAR

ROLL NO: 83

Certified by

Prof. DIPTI PATIL

 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and
depth is enormous.

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me

chance to do this project.

I would like to thank my Principal, Dr. Santosh Shende for providing the
necessary facilities required for the completion of this project.

I take this opportunity to thank our Self-Finance In-charge Dr. Arvind Ubale,
and our Coordinator Prof. Bhavana Chauhan for their support and guidance.

I would also like to express my sincere gratitude towards my project guide,

Prof. DIPTI PATIL whose guidance and care made the project successful.

I would also like to thank my College Library, for having provided various
reference books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly
helped me in the completion of the project especially my Parents and Peers
who supported me throughout my project.
 RESEARCH METHODOLOGY

For the purpose of project data is very much required which works as food for
process which will ultimately give output in the form of information. So before
mentioning the source of data for the project would like to mention that what
type of data have collected for the purpose of project and what it is exactly.

A research method is a systematic plan for conducting research. Methodology is

the systematic, theoretical analysis of the method applied to a field of study. It
comprises the theoretical analysis of the body of method and principles associated
with a branch of knowledge. Typically, it encompasses concepts such as paradigm,
theoretical model, phase and quantitative or qualitative techniques.

Now, this is the descriptive research paper based on secondary data. Data have
been collected through books, various websites, newspapers and publication of
recent research papers available in different websites, research articles, journals,
E-journals and etc.
 OBJECTIVE OF STUDY
The main objectives of the project are as follows:

 To analyze the genesis and growth of depository in India.

 To evaluate the operational framework of depositories in India and it

technological development.

 To analyze the management and working of SHCIL.

 To study the different services of SHCIL

 Critically examine the depository services provided by SHCIL. • To know

about the customers' expectations from the capital market

 To study depository system, its structure and operations.

 To study portfolio of investor and basis of their study

 To understand investors behaviour on various investment alternatives.

 To study investors preferences and trends.

 To develop strategies for SHCIL to improve its market share.

 INDEX

CHAPTER.NO TOPIC Pg.NO

1 Introduction to SHCIL
2 Industry profile
3 Product and service
4 Corporate social responsibility
5 Custodial service
6. Corporate structure
Conclusion
Suggestion
Bibliography
 CHAPTER NO 1:

STOCK HOLDING CORPORATION INDIA LIMITED

1.1 INTRODUCTION

A fast growing economy needs an equally robust financial ecosystem to back it.
At Stock Holding we are committed to making it happen. We were incorporated
in 1986 as a Public Limited Company and are a subsidiary of IFCI Limited. Our
equity capital is held by leading financial companies and banks like LIC, GIC,
IFCI Ltd., SU-UTI, NIA, NIC, UIC, and TOICL.
Since our inception, we have evolved steadily to be a financial powerhouse
offering a suite of offerings which help to ease the financial planning needs of
individuals. Covering short-term savings, investments in the stock market,
personal & family needs, long-term security, easy loans, retirement plans and
even protection for life & valuables.
Simultaneously, we brought an entire spectrum of financial products and
services to help businesses grow. By simplifying depository participation,
raising capital, protecting assets and life, managing documents, imparting
training and bringing exciting schemes for emloyees.
That’s not all. We have pioneered Demat services in India and our e-Stamping
service has made payment of Government dues hassle-free. As India’s Premier
Custodian, we offer a comprehensive spread of custodial services that allow
both Indian Institutional Investors and Foreign Portfolio Investors to invest in
India with confidence. Little wonder then that we manage over Rs. 34 lakh
crores in Assets Under Custody.
As peoples’ needs keep growing, we are ready with our enhanced efficiencies
and new technology to offer world-class service that delights. Little wonder
then that, we are soaring higher and happily catering to over 7.5 lakh customers,
through a growing nationwide network of over 200 branches.

Stock Holding Corporation of India Limited (SHCIL) is India's largest

custodian and depository participant, based in Mumbai, Maharashtra. SHCIL
was established in 1986 and was granted a status of a government company as
per section 2(45) of Indian Companies Act, 2013. in 2014. SHCIL is known for
its online trading portal Online Trading Portal with investors and traders. It is
also responsible for e-stamping system around India. It is also authorised by
Reserve Bank of India as Agency Bank to distribute and receive Govt. of India
savings/relief bond 2003 along with nationalized banks.

Stock Holding was incorporated as a Public Limited Company in 1986. It has

been jointly promoted by leading Banks and Financial Institutions. Stock
Holding is a subsidiary of IFCI Limited. The equity capital of Stock Holding is
presently held by LIC, GIC, IFCI Ltd., SU-UTI, NIA, NIC, UIC, and TOICL,
all leaders in their respective fields of business.
 VISION STATEMENT

‘To emerge as a partner of

choice in bringing delight to
customer experience in
financial and IT Solutions.
1.2 OBJECTIVES OF THE SHCIL:
 Stock Holding began by offering custodial and post trading services,
adding depository services and other services to its portfolio over a period
of time.

 Stock Holding has established itself in India as a one-stop solution

provider in the Financial Services domain.

 Well integrated front and back office, paper and electronic systems. A
focussed Client Relation Team to manage your needs & queries. A single
point contact for your comfort.

 In-house capability to address all IT needs in terms of software

development, maintenance, back-office processing, database
administration, network maintenance, backups and disaster recovery.

 Multilevel security is maintained in software, applications and guards to

access to various data, client and internal reports.

 Expertise in running processes utilising digital signatures.

 Regular Audits internal and external, by SEBI, Depositories, Clients and

compliance to rules and regulations.

 Constant review and benchmarking of processes to ensure adherence to

global best practices.

 Insurance cover with international re-insurance.

1.3 OUR VALUES

 Safety & Efficiency of Operations is a hallmark of Stock Holding.

 Professionalism & Integrity.
 Customer First.
 Relationship building.
 Commitment to Quality irrespective of asset size.
‘

1.4 AWARDS AND RECOGNITION

 First Asian Company to be bestowed with the prestigious Smithsonian

Award for Visionary use of IT'
 Computer Society of India Award - National IT Award for Best IT Usage
 NSDL Award for Largest Assets Under Custody for four consecutive
years
 Accreditations received from Global Custodian for three consecutive
years in
 2016, 2017 and 2018 as Market Outperformer & Category Outperformer
 Recognised as the 'Best Custodian for 2018 by AIWMI.

1.5 Why Would You Prefer SHCIL As A Service Provider

 Well integrated front and back office, paper and electronic systems. A
focused client relation team to manage your needs and queries. A single
point contact for your comfort.
 In-house capability to address all it needs in terms of software
development, maintenance, back-office processing, database
administration, network maintenance, backups and disaster recovery.
 Multilevel security is maintained in software, applications and guards to
access. to various data, client and internal reports.
 Expertise in running processes using digital signatures
 Regular audits, internal and external, by SEBI, depositories, clients and
compliance to rules and regulations.
 Constant review and benchmarking of processes to ensure adherence to
global best practices.
 Insurance cover with international re-insurance
 Full confidentiality of business operations.
CHAPTER NO 2:
 INDUSTRY PROFILE
2.1 FINANCIAL MARKETS:

Stock Holding Corporation of India Ltd. (SHCIL), the premier custodian of

Indian Capital Market providing services of international standards, is geared up
to reposition itself in the changed scenario.
The corporation has restructured and geared itself to serve the growing needs of
individual investors in the paperless environment. The organization in its
willingness to provide its state of art of financial services in securities industries
to the various segments of the investors has expanded itself to more than 100
cities across the country. SHC desires to give investors the time and attention in
monitoring the performance of their securities consistently. All aimed at
providing the investor with optimum financial gain.
India has a well-established capital market mechanism where in effective and
efficient transfer of money capital or financial resources from the investing class
to the entrepreneur class in the private and the public sector of the economy
occur. Indian capital market has a long history of organized trading which
started with the transaction in the loan stocks of the East India Company; from
that time, it has undergone drastic changes to meet the requirements of the
globalization.
There has been a shift of house hold savings from physical assets to financial
assets, particularly the risk bearing securities such as shares and debentures.
Capital market structure has also undergone sea changes with number of
financial services and banking companies, private limited companies coming
into the scene which made the competition in the market stiffer.

2.2 CAPITAL MARKET

The capital market consists of primary market and secondary market segments.
The primary market deals with the issue of new instruments by the corporate
sector such as equity shares, preference shares and debentures. The public sector
consisting of central and state governments, various public sector industrial
units (PSUs), statutory and other authorities such as state electricity boards and
port trust also issue bonds. The primary market in which public issue of
securities is made through a prospectus is a retail market and there is no
physical location. Direct mailing, advertisements and brokers reach the
investors. Screen based trading eliminates the need of trading floor.
The secondary market or stock exchange where existing securities are traded is
an auction arena. Since 1995, trading in securities is screen based. Screen based
trading has also made an appearance in India. The secondary markets consist of
23 stock exchanges including the NSE and OTCE and Inter Connected Stock
Exchanges of India ltd. The secondary market provides a trading place for the
securities already issued to be bought and sold. It also provides liquidity to the
initial buyers in the primary market to re-offer the securities to any interested
buyer at a price, if mutually accepted. An active secondary market actually
promotes the growth of the primary market and capital formation because
investors in the primary market are assured of a continuous market and they can
liquidate their investments in the stock exchange.
2.3 DEPOSITORY
Depository is an organization where the securities of a shareholder are kept in
the electronic form at the request of the shareholder through a medium of a
depository participant (DP). The principal function of a depository is to
dematerialize securities and enable their transactions in book form
electronically.
In India, the Depository Act defines a depository to mean “A company formed
and registered under the company’s act, 1956 and which has been granted a
certificate of registration under sub-section (la) of section 12 of the Securities
and Exchange Board of India (SEBI) act, 1992”. A depository established under
the Depositories Act can provide any service connected with recording of
allotment of securities or transfer of ownership of securities in the record of a
depository. A depository cannot directly open accounts and provide services to
clients. Any person willing to avail of the services of the depository can do so
by entering into an agreement with the depository through any of its Depository
Participants.

2.4 LEGAL FRAMEWORK OF DEPOSITORIES:

The depositories act of 1996 provides for regulation of depositories in securities
and for matter there with or incidental there to and came into force on 2Oth of
September, 1995. SEBI formulated the Depositories and participants regulations
act, 1996 to oversee the matter regarding admission and working of depositories
and its participant. The depositories act passed by parliament received the
presidents‟ assent on August 10, 1996 enables the setting up of multiple
depositories in the country. Only a company registered under the Companies
Act Of 1956 and sponsored by the specified categories of institution can setup
depositories in India. The depository offers services relating to holding of
securities and facility processing of transactions in such securities in book entry
form. The transactions handed by depositories include settlement of market
trades, settlement of off trades, Securities lending and borrowing, pledge and
hypothecations.

2.5 ADVANTAGES OF DEPOSITORY SYSTEM

 Elimination of bad deliveries and all risks associated with physical

certificates such as loss, theft, mutilation, etc.
 No stamp duty
 Immediate transfer and registration of securities
 Faster settlement cycle.
 No risk of buying fraudulent certificates.
 No courier/postal charges.
 Reduce record keeping.
 One investor account for all shares.

2.5 SERVICE PROVIDED BY DEPOSITORY

 Dematerialization (known as DEMAT) - converting physical shares into

electronic form.
 Re-materialization (known as REMAT) - is reverse of DEMAT, i.e.
getting physical certificates from the electronic securities.
 Transfer of securities - change of beneficial owner.
 Settlement of trades done on exchange connected to the depository.
 Pledge/hypothecation of DEMAT shares, viz., loan against shares.
 Electronic credit in public offerings of the companies.
 Non-cash corporate benefits, viz. bonus/rights - direct credit into
electronic form.
 Depository restricts the risk of fraud.
 CHAPTER NO 3:

PRODUCTS AND SERVICES

 DEMAT
 TRADING
 MUTUAL FUND
 GOI BONDS
 IPO (INITIAL PUBLIC OFFERINGS)
 INSURANCE
 PENSION FUNDS
 CONSTITUENT SUBSIDIARY GENERAL LEDGER
 NATIONAL PENSION SYSTEM

3.1 DEMAT
Introduction

Similar to a bank account which holds your money, Deposits and so on, A
Demat account or a web Demat account is the account which holds shares,
bonds, government securities, mutual funds, and exchange-traded funds (ETFs).
In simple terms, a Demat account is a must have and primary step for
transacting in the share market.
In 1875 at BSE, stocks were traded within the “Ring”, investors shouted their
prices to shop for or sell; once the trade was performed, money was exchanged
for share certificates. Settlements took quite a few times because of the huge
amount of paperwork involved in manually keeping a track of shares
sold/offered and later agreement of those transactions. thanks to technology we
moved to a digital age and everything grew to become electronic. In 1996
Demat accounts have been added and after dematerialization technique, all
bodily share certificates have been transformed into electronic form and the
same deposited into shareholders Demat Account.
A demat account is used for holding securities in the electronic format, after
they are purchased or dematerialized. It is provided by two depositories – NSDL
and CDSL respectively. Read more about the working, functions, and use of
demat account here.

Importance of Demat Account

A demat account is the best and most secured way of holding securities. It
eliminates the risk of theft, forgery, loss and damage of physical certificates. A
demat account ensures immediate transfers of securities. Once the trade is
approved, the shares and securities are automatically transferred to your
account. Automatic credit of shares can take place in the event of a bonus
received, company merger, consolidation, etc. Demat account information
regarding these activities is available online by simply logging into the account.
You can trade on the go, from anywhere—through your smartphone or desktop.
Hence, the need to visit the stock market to make transactions is eliminated.
You enjoy the benefit of reduced transaction costs as there is no stamp duty
involved with the transfer of shares.

Types of demat account

Demat account helps you, as an investor, to hold shares and securities in an

electronic form, instead of taking physical possession of share certificates.
Information about Demat account is shared by the depository participant who
provides the same. There are two types of demat accounts—Repatriable demat
account and Non-repatriable demat account. Repatriable funds are deposited in
a separate bank account known as the Non-Resident External Account (NRE
account). Repatriable funds are those funds which can be transferred abroad.
The investments made from these funds are maintained in a Repatriable Demat
account. On the other hand, non-repatriable funds (amounts which cannot be
taken abroad) are deposited in a different bank account known as the NRO
account. Investments made from these funds are deposited in the Non-
repatriable demat account. Money can easily be transferred from an NRE to an
NRO account. However, once the transfer is made, the reparability is lost and
thus cannot be transferred back to NRE account.

What is Demat account?

Demat Account or dematerialized account provides the facility of holding

shares and securities in electronic format. During online trading, shares are
bought and held in a demat account, thus facilitating easy trade for the users. A
Demat Account holds all the investments an individual makes in shares,
government securities, exchange traded funds, bonds and mutual funds in one
place.

Demat Account Opening Procedures

 Select a Depository Participant (DP)

 Submit your KYC Documents
 Appear for In-Person Verification
 Get Beneficiary Owner Identity (BOID)

The procedure to open demat account is almost similar for all the depository
participants, and all the brokers follow it. Here are the steps to open demat
account:
 Select a Depository Participant (DP): Select a Depository Participant
(DP) you would like to open your account with; this entity will serve as
the intermediary between you and the depository. DPs can be banks,
brokers or online investment platforms. SHCIL has been providing this
service since 1986, and is registered with the Central Depository Services
Limited (CDSL), as well as being a member of BSE (Bombay Stock
Exchange) and NSE (National Stock Exchange)

 Submit your KYC Documents: Submit the form given to you for
opening an account, the KYC form, passport size photographs, your PAN
card (Permanent Account Number), and other photocopied documents.
At this point, you will be given the option to name a person as your
nominee. They will be assigned with the responsibility of your shares if
something were to happen to you. The choice of one’s nominee can be
changed, if need be in the future, by refilling the same form.
number – that you can use during future transactions and to access your
account .The KYC form also has the Depository Participant-Investor
agreement which comprises the terms of agreement, rules and regulations,
and charges you will incur whilst holding a Demat account. This form
also includes the rights of the investor and duties of the DP.

 Appear for In-Person Verification: An In-Person Verification may be

carried out by a person from your DP’s firm to ensure that the details
provided by you in the form are authentic.

 Get Beneficiary Owner Identity (BOID): Once your application has

been processed and your DP has facilitated the opening of your account,
he/she will give you a Beneficiary Owner Identity (BOID) – a unique
account
 You need to open a trading account along with the Demat account so that
you can immediately begin buying and selling shares.

Opening a demat account is the beginning of a hassle-free investing

experience that involves neither the storage risks of paper certificates nor
the time-consuming nature of offline trading.

Documents Needed to Open a Demat Account

The documents required to open a demat account include a proof of address and
proof of identity. In addition, applicants will need to submit a copy of their PAN
card and passport-sized photographs.

Proof of Identity for opening a demat account:

 Voter’s identity card
 Income tax returns
 Bank attestation
 Electricity bill
 Identity cards issued by the central or state government along with a
photograph
 Identity cards issued by professional bodies like the Bar Council, Institute
of Chartered Accountants of India, and Institute of Cost Accountants of
India
 Passport
 Driving license
 PAN card
s
Proof of Address for opening a demat account:

 Ration card
 Identity cards issued by professional bodies like the Bar Council, Institute
of Chartered Accountants of India, and Institute of Cost Accountants of
India
 Passport
 Identity cards issued by public sector undertakings, regulatory or
scheduled authorities, public financial institutions, university-affiliated
colleges, or scheduled commercial banks
 Voter’s identity card
 Self-declaration by Supreme or High Courts judges
 Agreement for sale
 Leave and license agreement
 Verified copies of electricity bill
 Bank statement or passbook
 Driving License
 Residential telephone bill

Information to be provided on Demat Account Opening Form:

 Name/s of account holder/s: All the names on the demat account opening
form should be exactly the same as stated on the physical certificates to
ensure seamless dematerialization of securities

 Mailing and communication address: The applicant’s address must be

supported by a copy of one of the above-listed documents. Non-resident
applicants will have to provide address proof for both themselves as well
as the constituted attorney

 Guardian details for minor accounts: Guardians are only eligible to open a
demat account in the name of a minor applicant. He or she must sign the
application form and provide his or her details along with the minor

 Bank account details: All bank details, such as name of bank, branch,
MICR, and IFSC code must be provided at the time of opening the Demat
account
  Nomination declaration: Beneficial owner/s can nominate another person
to allow automatic transfer of all holdings on the death of the account
holder/s.

 While only photocopies of the following documents are necessary for

submission, originals will be need for verification purposes.

Important Points and Guidelines to Remember While Opening a Demat

Account at SHCIL:

 Self-attested copy of PAN card is mandatory for all clients.

 Copies of all the documents submitted by the applicant should be self-
attested and accompanied by originals for verification. In case the original
of any document is not produced for verification, then the copies should
be properly attested by entities authorized for attesting the documents, as
per the below mentioned list.
 If any proof of identity or address is in a foreign language, then
translation into English is required.
 Name & address of the applicant mentioned on the KYC form, should
match with document submitted.
 If correspondence & permanent address are different, then proofs for both
have to be submitted.
 Sole proprietor must make the application in his individual name &
capacity.
 For non-residents and foreign nationals, (allowed to trade subject to RBI
and FEMA guidelines), copy of passport / PIO Card / OCI Card and
overseas address proof is mandatory.
 For foreign entities, CIN is optional; and in the absence of DIN no. for
the directors, their passport copy should be given.
 In case of Merchant Navy NRI's, Mariner's declaration or certified copy
of CDC (Continuous Discharge Certificate) is to be submitted.
  For opening an account with Depository participant or Mutual Fund for a
minor, photocopy of the School Leaving Certificate/Mark sheet issued by
Higher Secondary Board/Passport of Minor/Birth Certificate must be
provided.
 Politically Exposed Persons (PEP) are defined as individuals who are or
have been entrusted with prominent public functions in a foreign country,
e.g., Heads of States or of Governments, senior politicians, senior
Government/judicial/military officers, senior executives of state-owned
corporations, important political party officials, etc.

Demat Account Opening Charges:

 Although, no charges are levied at the time of opening a Demat account,

there are certain charges applicable for its operations. All these charges
and fees are transparent and communicated to the account holders.
 No fees at the time of opening a demat account. All other charges are
payable per month. It is important for the users to bear in mind that any
delay in the payment of these monthly charges may result in the freezing
of their accounts. All information related to these is available in the
agreement signed at the time of opening a demat account.
 Users also need to bear in mind that the demat account charges are
subject to changes as per the company’s discretion under the provisions
of the National Services
 Depository Limited.
 The values of various transactions would be as per the rates provided by
the central depository or the actual value, whichever is higher.
 Service tax and other statutory fees are levied as per prevailing rates.
 Annual maintenance charges will be applicable as per current guidelines.
 In the case of no transactions, the DP may not send quarterly transaction
statements to the clients. For such demat accounts, there will be no levy
of the annual maintenance fees.
 Sole or first holders can opt for the Basic Services Demat account
(BSDA) if the value of the security holdings does not exceed INR 2
lakhs. If the BSDA is re-converted to a regular account (non-BSDA), all
the applicable charges of such accounts are levied.
 Dematerialization and re-materialization fees as per prescribed rates are
applicable.
 Re-materialization or redemption of mutual fund holdings held in the
Demat account is chargeable.
 If securities held in the demat account are pledged in favour of the DP or
another party, the Pledge Charges are applicable.
3.2 TRADING
What is a Trading Account?

 A trading account is an interface that allows buying and selling of shares.

 It acts as an interface between the investors’ bank and Demat accounts.
 Shares purchased through this account are credited to one’s Demat
account.
 Sold shares are debited from the Demat account and sales proceeds are
credited to the bank account.
 There is no restriction on the number of Demat accounts that an
individual can avail.

Here are few things to know about trading account:

 Features and Benefits of Trading Account.
 Benefits of Trading account
 Selecting the Best Trading account in India
 Procedures to Open a Trading Account online
 Documents required
 Getting started

Features and Benefit of Trading Account

Features:

 Buy or sell shares either on the phone or online

 Expert recommendations allow investors to access the best performers in
various categories.
 Regular market updates and free news alerts on successfully opening an
online trading account.

 Using the margin investing option, investors can increase their exposure
on various shares.
  A high-speed trading platform allows trading in the stock markets in real
time without any delays to maximize profits.
 Orders can be placed during after-market hours using special facilities.
 Expert research advice can be availed from an experienced team of
analysts.

Benefits:

A trading account allows an investor to set his own personal trading limits.
Investors are allowed to buy/sell stocks, gold ETF, Forex, ETFs, and
Derivatives using a trading account. A few benefits of trading accounts are
given below.
 It is easy to set up and offers telephonic and online access. An investor
does not need to carry physical transactions in order to buy/sell securities.
 It shows the relation between gross profit and sale. This helps to measure
an investor’s profitability position.
 It also reflects the ratio between costs of goods sold and gross profits.

Selecting the Best Trading account in India

 Based on the transaction frequency, a reliable platform that provides cost

efficient and affordable service charges should be considered.
 A service provider that offers a complete and comprehensive solution to
meet various needs for trading on the equity markets should be chosen.
 Consider long-term requirements beforehand, because most transactions,
such as transfer from one Demat account, are chargeable.
 The best trading account in India will provide advanced technology
platforms to provide access anytime, anywhere. Moreover, there will be
almost no downtime, which could restrict trading capabilities.
 Working with a service provider that offers reliable and efficient services
is crucial to ensure that one can trade without any trouble. In addition, the
customer servicing executives of the chosen service provider must be
 trained and able to provide quick and effective solutions to any issues that
may crop up.

Procedures to Open a Trading Account online

The first step involved in opening a trading account is selecting a SEBI-

registered stockbroker. A broker with a valid registration number that is issued
by SEBI is necessary to open a Demat accounts. Angel Broking offers Demat
and Trading account to eager traders, to know more about how to open trading
account with Angel Broking, Click here.
In order to open a trading account, an individual has to submit a ‘Client
Registration Form’ and other documents as prescribed by SEBI - the regulator
for the securities market in India. An Account Opening form and Know Your
Client (KYC) documents must be submitted along with the investor’s identity
and address proofs.
The details will then be verified through a phone call or an in-house visit.
After verification, the account will be processed and the investor will receive
his account details
Documents required

 The basic documents required for opening a trading account are:

 Account Opening form.
 Photo ID proof: PAN card / Voter's ID / Passport / Driving license /
Aadhaar card.
 Address proof: Telephone bill / Electricity bill / Bank statement / Ration
card/ Passport / Voter's ID / Registered lease or sale agreement / Driving
license.
Various Types of Trading Accounts and Demat Accounts

One of your primary relationship with a broker is built through a trading account. You need
to open a trading account to buy and sell shares in the stock market. However, there are a
variety of accounts that you need to be aware of. What is BO ID, what is a trading account,
what is demat account and types of demat account, separate classes of accounts are all things
you need to be aware of. Here is a quick classification.

Only Trading Account or Only demant Account

The normal belief is that you need to open a trading account and a demat account
simultaneously. Actually, you can choose to open only one of these account as the case may
be. For example, if you want to invest in an IPO then demat account alone is sufficient. Once
the shares are allotted to you, the shares will be credited to your demat account. The only
catch here is that you cannot sell the shares unless you have a trading account. In case you are
buying shares purely with a view to hold it for the long term, then demat account alone is
sufficient. Similarly, if you only want to trade in futures and options, then you need not open
a demat account. A trading account alone will be sufficient since F&O does not result in
delivery. It is only when you want to hold equities that you require a demat account.

Equity trading account and Commodity trading account

Your equity trading account is good enough to trade in equities, futures and
options. What about commodities? Currently, it is not possible to trade in
commodities with your existing equity trading account. You will need a
separate commodity trading account which you will have to open with your
broker. This is more due to the fact that commodities were under a different
regulator in the past. It is only in the last 2 years that the FMC was merged into
SEBI and the commodity market regulation was also brought under SEBI. This
could change as the regulator looks to further integrate the equities and
commodities segments. It is interesting to note that currency derivatives can be
dealt in your existing equity trading account itself.
Online versus Offline trading accounts Deciphering 2-in- 1 account versus
3-in- 1 account

Let us look at the primary classification here. Offline trading accounts are the
traditional accounts that do not offer internet trading. You can call up your
broker or walk into your broker’s office and trade. The online accounts, on the
other hand, offer internet trading. That means you can execute your trades
sitting in the comfort of your home or your office using your laptop, PC or even
your smart phone. An online account tends to attract lower brokerage and is
also a lot more convenient and flexible for the trader.
Within the ambit of online trading accounts let us also understand the difference
between 2-in- 1 accounts and 3-in- 1 trading accounts. The 2-in- 1 trading
account basically integrates the trading account and the demat account. Thus,
when you buy shares in your trading account the movement into your demat
account on T+2 day is seamless. Similarly, when you sell shares, the debit to
your demat account on T+1 date is also seamless. The 3-in-1 account is offered
by brokers that have banking operations within the group. Thus, ICICI
Securities, HDFC Securities, Axis Securities and Kotak Securities are all able to
offer 3-in- 1.
accounts due to their banking interface. While 2-in- 1 accounts are a must to
ensure seamless relationship between trading and demat, the 3-in- 1 is not a
major advantage as most broking platforms will allow you to transfer funds
almost seamlessly into your trading account.

Discount broking accounts versus full-service trading accounts

This distinction has gained prominence in the last couple of years with the
emergence of discount brokers who trade huge volumes at very low cost. These
discount brokers do not offer any research or any add-on advisory services.
They just offer plain execution of trades which is why they are able to offer
very low brokerage. Similarly, these discount brokers do not offer offline
facility for placing trades except a call-and- trade facility, which is chargeable
in most cases. The full-service model will charge a higher brokerage but comes
with a host of services. For example, there is research, there are short term calls,
3.3 MUTUAL FUND:

Types of Mutual Funds:

It is important to understand the Mutual Fund type and their features. Mutual
Fund types can be classified based on the following characteristics.

Based on Asset Class

 Equity Funds
 Debt Funds
 Money Market Funds
 Hybrid Funds
Based on Structure
 Open-ended Funds
 Closed-ended Funds
 Interval Funds
Based on Investment Goals

 Growth Funds
 Income Funds
 Liquid Funds
 Tax-Saving Funds
Various type of Mutual Funds exists to cater to different needs of different
people. Largely, they are of three types.

Equity or Growth Funds

 These invest predominantly in equities i.e., shares of companies
 The primary objective is wealth creation or capital appreciation.
 They have the potential to generate higher return and are best for long-
term investments.
 Examples would be:

 “Large Cap” funds which invest predominantly in companies that run

large established business.
 “Mid Cap” funds which invest in mid-sized companies. o “Small Cap”
funds that invest in small sized companies“Multi Cap” funds that invest
in a mix of large, mid and small sized companies.
 “Sector” funds that invest in companies that are related to one type of
business.
 For e.g., Technology funds that invest only in technology companies
 Thematic” funds that invest in a common theme. For e.g., Infrastructure
funds that invest in companies that will benefit from the growth in the
infrastructure segment.
 Tax-Saving Funds
Income or Bond or Fixed Income Funds
 These invest in Fixed Income Securities, like Government Securities or
Bonds, Commercial Papers and Debentures, Bank Certificates of
Deposits and Money Market instruments like Treasury Bills, Commercial
Paper, etc.
 These are relatively safer investments and are suitable for both Capital
Protection and Income Generation.
 Example would be Liquid, Short Term, Floating Rate, Corporate Debt,
Dynamic Bond, Gilt Funds, etc.

Hybrid Funds

 These invest in both Equities and Fixed Income, thus offering the best of
both, Growth Potential as well as Income Generation.
  Example would be Aggressive Balanced Funds, Conservative Balanced
Funds, Pension Plans, Child Plans and Monthly Income Plans, etc.

Investment Methods:
SIP (Systematic Investment Plan):

Systematic Investment Plan (SIP) helps you build wealth, step - by - step, over a
period of time. SIP can be started for as low as Rs. 500 per month and gives you
the benefit of the power of compounding and rupee-cost averaging. SIP
payments can be automated by providing an online mandate.

LUMPSUM

Lump-sum allows you to invest in a Mutual Fund by paying a bulk amount.

There is no compulsion to buy units at regular intervals or for any fixed amount
if you wish to reinvest in the same fund.
List of Fund Houses:

The scheme of the following Fund Houses is distributed by Stockholding.

 Aditya Birla Sun Life Mutual Fund
 Baroda Pioneer Mutual Fund
 BOI AXA Mutual Fund
 DSP Mutual Fund
 Essel Mutual Fund
 HSBC Mutual Fund
 HDFC Mutual Fund
 IDBI Mutual Fund
 Invesco Mutual Fund
 ITI Mutual Fund
Fund Finder:
Fund Finder is a paperless and Intelligent Online Mutual Fund Investment
Platform for seamless investment, management and monitoring of all Mutual
Fund investments at one place. The platform is completely user-friendly and
helps you to invest, redeem or switch your Mutual Fund holdings at a click of
the button. The auto-risk-profiler feature guides you to an ideal asset allocation
basis which you get to invest in top ranked Mutual Funds according to your
requirement.

FEATURES

 Completely paperless
Get ready to invest in 5 minutes, after completing online KYC.

 SIP Auto Payments

Mandate done on a single click and enjoy the power of auto SIP.

 Family accounts
Manage portfolio of family members under single profile and track all
investments seamlessly.

 On-board previous investments

In just one click, get all your existing Mutual Fund investment under one roof.
Hassle-free monitoring and redemption of previous investment can be done in
one click too. The system also calculates yearly returns on Mutual Fund
investment and provides a health score for the investment.

 Robotic Advisory
Avail of a powerful feature where a software suggests an ideal investment
basket based on your risk profile.
e-MF: Enjoy the ease of seamless investment with e-MF through
Stockholding. It allows you to invest in Mutual Funds 24 x 7 on a click using a
Common Account Number (CAN). This unique number maps all your Mutual
Fund folios from various fund houses, consolidating all your investments at one
place. Furthermore, it allows transactions in multiple schemes across fund
houses by making a single consolidated payment and eliminating the need to
fill-new account opening forms for every mutual fund.
BENEFITS

Simplicity
Mutual Funds are easy to understand and invest in.
Accessibility
Can be bought by filling an online form or visiting any of our branches.
Diversification
Mutual Funds have broad market exposure. Hence risk can be minimised.
Professional Management
Since a team of expert fund managers work to manage your portfolio, you can
breathe easy.
Types of Mutual Funds Scheme in India
Wide variety of Mutual Fund Schemes exist to cater to the needs such as
financial position, risk tolerance and return expectations etc. The table below
gives an overview into the existing types of schemes in the Industry.
 By Structure
 Open - Ended Schemes
 Close - Ended Schemes
 Interval Schemes
 By Investment Objective
 Growth Schemes
 Income Schemes
 Balanced Schemes
 Money Market Schemes
 Other Schemes
  Tax Saving Schemes
 Special Schemes
 Index Schemes
 Sector Specific

Diversification

The nuclear weapon in your arsenal for your fight against Risk. It simply means
that you must spread your investment across different securities (stocks, bonds,
money market instruments, real estate, fixed deposits etc.) and different sectors
(auto, textile, information technology etc.).

Tax Benefits

Any income distributed after March 31, 2002 will be subject to tax in the
assessment of all Unit holders. However, as a measure of concession to Unit
holders of open-ended equity-oriented funds, income distributions for the year
ending March 31, 2003, will be taxed at a concessional rate of 10.5%.
Regulations

Securities Exchange Board of India (“SEBI”), the mutual funds regulator has
clearly defined rules, which govern mutual funds. These rules relate to the
formation, administration and management of mutual funds and also prescribe
disclosure and accounting requirements. Such a high level of regulation seeks to
protect the interest of investors

Affordability

A mutual fund invests in a portfolio of assets, i.e., bonds, shares, etc. depending
upon the investment objective of the scheme. An investor can buy in to a
portfolio of equities, which would otherwise be extremely expensive.

Features related mutual funds

  Reliance was the first fund house to launch sector funds with flexibility to
invest In a range of 0% to 100% in either equity or debt instruments.

 Mutual fund investments linked to an ATM/debit card a Reliance

innovation India’s first long-short fund comes from Reliance Mutual
Fund.

3.4 GOVERNMENT OF INDIA BOND (GOI Bond)

Savings Bonds are issued by RBI on behalf of Government of India in the
following series. 8.0% taxable bonds .These Bonds are held in electronic form
in an account called Bond Ledger Account (BLA).Bond Ledger Accounts can
be opened and operated with RBI designated Receiving Offices. SHCIL has
been designated as one of the Receiving Offices by RBI for this
purpose .Subscriptions for Savings Bonds can be submitted at any of our
branches.

The following categories can subscribe to Savings Bonds: Category of

Investor 8.0% (Taxable)
 Individual His or her individual capacity. Individual capacity on joint
basis. Individual capacity on anyone or survivor basis. On behalf of a
minor as father/mother/legal guardian.
 HUF (Hindu Undivided Family)
 Charitable Institution Charitable Institution to mean a Company
registered under Section 25 of the Indian Companies Act 1956 An
Institution which has obtained a Certificate of Registration as a
Charitable Institution in accordance with a law in force. Any institution
which has obtained a certificate from Income tax Authority for the
purposes of Section 80G of the Income Tax Act, 1961.

Advantages
  HASSLE FREE MAINTENANCE: The GOI Bonds are held in electronic
form in an account called Bond Ledger Account. This ensures smooth
investing minus paperwork.
 ELECTRONIC CLEARING SERVICES: You can avail of Electronic
Clearing System (ECS) services. This ensures automatic credit of benefits
and redemptions when they accrue.
 EASY ACESS: You can apply for subscriptions into these Bonds in any
SHCIL centre across the country.
 DISPATCH: Certificate of Holdings is dispatched to the client through
courier on realization of subscription. .
 INSURANCE: SHCIL, a company promoted by Insurance majors &
Financial Institutions, is a Corporate Agent of LIC for Life Insurance
products and NIA for General Insurance products.

SHCIL has a dedicated team of IRDA Certified Insurance Advisors to provide

all services relating to Insurance. We also provide Free Professional advice to
clients on need base insurance. SHCIL has 200 plus odd Branches all over India
to take care of all your Insurance related queries and needs. LIC products: Key
Man Insurance is an insurance taken by a business firm on life of an employee
(Key Man) whose services contribute substantially to the success of the
business of the firm. The object of Key man insurance is to indemnify business
firm from the loss of earnings may occur because immediate replacement of the
Key Man may not be possible. Section 37 (1) of the Income Tax Act ,1961
provides that any expenditure laid out or expended wholly and exclusively for
the purposes of business or profession shall be allowed as a deduction in the
computation of income from business or profession. Only Partnership firms and
Companies are eligible.
3.5 IPO (Initial Public Offering):
Initial Public Offerings (IPOs) give you the opportunity to grow your wealth in
the long-term by investing early in companies that promise a high growth
potential. With Stockholding, you can invest in such opportunities by filling in
the online form above.

Benefits

 Early action: By investing in an IPO, you can grow your wealth in the
long-term if the company progresses as expected.
 Meet long-term goals: IPO investments are equity investments. So,
they have the potential to bring in big returns in the long-term.
 More price transparency: The price per security issued is clearly
mentioned in the IPO order document. So, you have access to the same
information as bigger investors.
 Buy cheap, earn big: The IPO price is often the cheapest price if you
invest in a small company that has the potential to grow big. If you miss
the IPO window, investing in that promising company may be difficult
because the stock price may skyrocket.
3.6 INSURANCE:
At Stock Holding we bring you a range of insurance solutions. Covering people
and various operational risks such as theft, financial losses, employees' health
benefits and accidents. Helping you to financially protect the organisation and
keep businesses running.

Types of Corporate Insurance

We offer a wide variety of insurance solutions and will help you choose the
perfect one to address your business needs.

Business Asset Insurance

Including Fire Policy and Allied Perils.

Business Liability Insurance

Credit Liability, Product Liability, Environment Liability, Directors’ and
Officers’ Liability, Commercial General Liability, Employment practices
Liability, Clinical Trials liability, Crime Insurance and Marine Insurance Policy.

Group Insurance Schemes

For corporate employees offers range of products for life, accidental death and
health insurance.

Benefits
 Reliable: All our insurance advisors are IRDAI certified.
 Tailor-made solutions: We provide Need Based Analysis and
Recommendations.
 One-window solutions: We provide all kinds of insurance solutions
from one point.
 Protects business: Corporate insurance helps keep the business running
in the face of an adverse event. It can also protect your company from
loss of income caused due to the disruption.
 Employees’ protection: With our various insurance offerings, you can
provide your employees regular healthcare facilities, check-ups and
compensation in case of disability or demise.
3.7 PENSION FUNDS SHCIL

Offers pension fund administration services to pension fund trusts. The pension
fund scheme administered by the trust could be a defined benefit or a defined
contribution scheme. For both the scheme types, SHCIL offers the entire range
of services that include design, development and maintenance of a customized
pension. SERVICE PROFILE Various Services Provided by Stock Holding
Corporation of India Limited.

DP SERVICES:

SHCIL Depository Participant services address customers individual investment

needs. With a parentage of leading financial institutions and insurance majors
and a proven track record in the Custodian business, Company have reiterated
their past success by establishing ourselves as the first ever and largest
Depository Participant in India. From a tentative foray in 1998 into the
individual investor arena to servicing around seven lakh accounts, it has
endeavoured to constantly add and innovate to make business a pleasure for
you. At SHCIL, company places a very high premium on client reporting.
Periodic statements sent to you keep you informed of customers account status.
Dedicated Customer Care lines manned by trained staff answer customer
queries on demat / trades / holdings. The latest in client response at SHCIL is
Interactive Voice Response (IVR) system for round the clock information on
customer’s account. DEMAT: - Dematerialisation is the process of conversion
of shares from physical form to the electronic mode. Companies dedicated
demat team enable you to convert customer’s physical holdings into electronic
mode in a quick and hassle-free manner. CLEARING MEMBER SERVICES: -
SHCIL's long-standing association with Clearing Members has enabled it to
develop services based on an understanding of their working and their
requirement for timely and accurate information. It accepts deposits of base
capital and Additional base capital requirements stipulated by NSE for clearing
members trading on its capital market segment. Besides, SHCIL s new products
with a broker empanelment clause ensure a mutually beneficial tie-up. Clearing
members.
stand to earn a steady income from SHCIL s product transactions and new add
to their client-base, while they capitalize on their rapport with the market. It
currently offers Depository services to more than 680 clearing members of
various exchanges connected with NSDL and CDSL. SHCIL s Customer Care
lines answer all customers DP queries while the Interactive Voice Response
(IVR) system gives you information on customers account and other valuable
data like CC calendar details, tariff, ISIN information, etc. via telephone, fax
and e-mail. Advantage: - SHCIL s Customer Care help lines give timely and
accurate information to CMs. The Interactive Voice Response (IVR) system at
SHCIL gives round the clock information on holdings & transactions Pay in /
Pay out details, overdue cum holding details, etc. via telephone, fax or e-mail.

DERIVATIVE SERVICES: SHCIL provides Clearing Services for derivative

segment of BSE/NSE and Commodity segment of MCX/NCDEX. STOCK
DERIVATIVES- SHCIL is a Custodian/Professional Clearing Member of
derivative segment at the Bombay Stock Exchange and at the Futures & Options
Segment of the NSEIL respectively.
COMMODITY DERIVATIVES: SHCIL is the first Professional Clearing
Member of Commodity segment on the Multi Commodity Exchange (MCX)
and National Commodity & Derivative Exchange (NCDEX). SHCIL has a full-
fledged in-house back-office systems and procedures to cater to the needs of
trading members and other institutional / corporate clients in this segment. A
dedicated team of professionals handles derivative operations and assists its
clients. As a professional clearing member, SHCIL performs the following
functions; Clearing - Computing obligations of all his TM s i.e., determining
positions to settle. Settlement - Performing actual settlement. Collateral
Management - Collection of collateral (cash and cash/cash equivalents and
setting up exposure limits for TMs and Institutional clients. Risk Management -
Setting position limits based on upfront deposits/margins for each TM and
monitoring positions on a continuous basis.
Advantage: SHCIL has always been a pioneer in clearing and settlement
services in the cash. SHCIL has the capability to handle large volumes of
business with greatest accuracy, keeping customer interests as the top priority.
SHCIL being a professional clearing member has no trading interests in the
Commodity segment. There is strictly no dissemination of information on
trading or any other operation of any of its clients. Collateral Management
SHCIL has excellent system to manage cash and cash equivalents deposited as
collateral for derivatives trading. Continuous Patronage from Institutional
clients: SHCIL being a custodian clearing member having major institutional
clients, provides more credibility. Tie-up with banks having nation-wide reach
for banking activities: Since settlement in derivatives trading takes place daily.
Funds movement has to be fast. SHCIL has tie up with new generation banks
having wide reach and modern facilities like TT / anywhere banking etc. to
contain the time lag in banking transactions.
Competitive service charges: SHCIL is the pioneer in introducing Derivatives
Clearing and Settlement services in the country. Service charges are so
competitively structured to facilitate any entrant. Low investment: The clearing
function in the Commodity derivative segment requires huge investment in
back-office systems and requires strict compliance to the regulatory framework.
BROKING Stock Holding Corporation of India Ltd. (SHCIL) in its endeavour
to provide one stop shop to its large retail & institutional clients has promoted
SHCIL Services Limited (SSL) as its broking arm. SHCIL has been promoted
by All India Public Financial Institutions and Insurance Majors. SHCIL is
known for its Security, Integrity, wide network and focus on technology.
3.8 CONSTITUENT SUBSIDIARY GENERAL
LEDGER:
Stockholding helps Banks, corporates, PF Trusts, individuals, institutions, State
Governments, NRIs, OCBs, FIIs to open a Constituent Subsidiary General
Ledger (CSGL) account to facilitate investments in Government securities and
treasury bills.

Benefits

o Safe: Invest in Government Securities and Treasury Bills under the

strict guidelines of the Reserve Bank of India.

o Quick Payments: Periodic coupon payments are automatically credited

to the SB/CD account of constituents. Securities are credited to the gilt
account on the value date of purchase/allotment. Delay in transfer of
securities is fully eliminated. Periodic interest and redemption amount are
credited to the fund account on due dates.
o Peace of mind: No risk of theft, fraud, misappropriation or loss as the
holdings are in DEMAT form. Statement of Balance is available on
demand. Delivery and settlement are guaranteed by CCIL.
3.9 NATIONAL PENSION SYSTEM:
Eligibility
 Entities registered under Companies Act and various Co-operative Acts

 Central Public Sector Enterprises

 State Public Sector Enterprises

 Registered Partnership firm and Limited Liability Partnership (LLPs)

 Anybody incorporated under any act of Parliament or State legislature

or by order of Central / State Government

 Proprietorship Concern

 Trust/Society

Benefits
NPS brings about the following advantages for the employers and the
employees

Low-cost Investment: The investment cost is very low as compared to other

investment products available in the market.

Flexible: The employer can have the option to select the investment choice for
all its employees or may give the option to the employees. The employees have
the option to choose from an assortment of asset classes (Equity, Corporate
Debt & Government Securities) and can have the freedom to invest in a variety
of Pension Funds

Online Access- Round the clock: Riding on a highly efficient technological

platform NPS provides online access to accounts to the subscribers

Regulated: The funds are managed by Pension Funds appointed and actively
monitored and regulated by PFRDA, the Regulator set up through an Act of
Parliament

Portable: The NPS can be operated from anywhere in the country even if one
changes the job location or the job itself.
3.10 GOLD RUSH:

Looking for a simple way to accumulate gold? Presenting Gold Rush. Now buy
high purity gold by investing as little as ₹100/- and build it securely over a
period of time. You can withdraw it by taking physical delivery of the gold at
any point of time.
Minimum and maximum amount
The minimum amount at the time of application is ₹100/- and thereafter there is
no limit on the amount you can invest.

How it works

 Open a Gold Rush account online free of cost.

 After opening the account your first purchase will be ₹100/- and multiples of
₹1/- thereafter Build a collection by investing in gold regularly.

 Withdraw it anytime when you need it.

 Gold withdrawn will be delivered at your registered address. Minimum amount
for delivery is 1 gram.

Benefits

 Buy gold 24/7 online: Now you can buy gold anytime at your convenience

 Value investment: Start your collection early on and keep building a good
value investment for future

 Assured safety: Gold accumulated is safe from theft and other risks as it’s
stored in a special vault and covered by insurance

 Assured purity & quantity: Gold provided is of 999.9 purity, 24 karat and
accurate to the weight promised

 Doorstep delivery: Gold accumulated in the Gold Rush Account will be

delivered at your registered address
 CHAPTER NO 4:

CORPORATE SOCIAL RESPONSIBILITY (CSR)

Stock Holding is committed to operate and grow its business in a socially

responsible way. Our vision is to grow our business whilst reducing the
environmental impact of our operations and increasing our positive social
impact.
4.1 CSR INITIATIVES AT STOCK HOLDING

 Donation of school kits to underprivileged children.

 SHCIL has undertaken to re-establish the defunct Industrial Training
Institute at Mankhurd. Celebration of the institute day cum re
establishment day on March 06, 2017 at ITI Premises Mankhurd.
 Toilets constructed by SHCIL under Swach Bharat Mission.

4.2 CSR POLICY

A. INTRODUCTION:

 Stock Holding Corporation of India Limited (Stock Holding) strongly

believes that Business & Corporate Social Responsibility (CSR) go hand-
in-hand. Currently, all the CSR activities of Stock Holding are being
undertaken through SHCIL Foundation Trust, a public charitable trust
registered under Section 12 (A) of the Income Tax Act, 1961 with Stock
Holding as a Settlor.
 Ministry of Corporate Affairs (MCA) has notified Section 135 and
Schedule VII of Companies Act, 2013 (hereinafter referred to as ‘Act’)
along with the Companies (Corporate Social Responsibility Policy)
 Rules, 2014 (hereinafter referred to as ‘CSR Rules’) to come into effect
from April 1, 2014.
 The CSR policy of Stock Holding has been prepared pursuant to the
Section 135 of the Act and the CSR Rules. The CSR policy would serve
as the referral document for all CSR related activities of Stock Holding.

B. FINANCIAL RESOURCES:

Every financial year, Stock Holding shall with the approval of its Board of
Directors make a budgetary allocation for CSR activities. In line with the
provisions of the Act and the CSR Rules, the budgetary allocation will be
atleast 2% of the average net profits of Stock Holding made during the three
immediately preceding financial years. The surplus arising out of CSR activities
shall not form part of the business profit of Stock Holding.

C. CSR ACTIVITIES:

 Eradicating hunger, poverty and malnutrition, promoting preventive

health care and sanitation (including contribution to the swach bharat
kosh set up by Central Govt. for promotion of sanitation) and making
available safe drinking water
 Promoting education, including special education and employment
enhancing vocation skills especially among children, women, elderly and
the differently abled and livelihood enhancement projects;
 Promoting gender equality, empowering women, setting up homes and
hostels for women and orphans; setting up old age homes, day care
centres and such other facilities for senior citizens and measures for
reducing inequalities faced by socially and economically backward
groups.
  Ensuring environmental sustainability, ecological balance, protection of
flora and fauna, animal welfare, agroforestry, conservation of natural
resources and maintaining quality of soil, air and water (including
contribution to the clean Ganga fund set up by the Central Govt. for
rejuvenation of river Ganga)
 protection of natural heritage, art and culture including restoration of
buildings and sites of historical importance and works of art; setting up
public libraries; promotion and development of traditional arts and
handicrafts.

D. CSR EXPENDITURE:

 CSR expenditure shall include all expenditure including contribution to

corpus, for projects or programs relating to CSR activities approved by
the Stock Holding-CSR policy Page 5 of 10 Board on the
recommendations of the CSR Committee but will not include any
expenditure on any item not in conformity or in line with activities which
fall within the purview of Schedule VII of the Act.
 It is proposed that Stock Holding & its subsidiaries may undertake CSR
activities either on their own or contribute by way of donation to SHCIL
Foundation Trust or any other Trust for projects and program undertaking
CSR activities directly related to subject covered in Schedule VII of the
Act after the same are approved by the Board on recommendations of
CSR committee/CSR Policy.
 Stock Holding will give preference to the local area and areas where it
operates, for spending the amount ear-marked for CSR activities.
E. GOVERNOR STRUCTURE:

 Board of Directors
 CSR Committee of the Board
 SHCIL Foundation Trust
 CSR Nodal Officer
 Stock Holding Volunteers

F. ROLE OF THE BOARD:

The role of SHCIL Board shall include the following:
 Based on the recommendations made by the CSR Committee, approve
the CSR policy for Stock Holding and disclose contents of such policy in
its report and also place it on its website in prescribed manner.
 Ensure that the activities as are included in the CSR policy are
undertaken.
 If Stock Holding fails to spend the required amount, i.e. atleast 2% of the
average net profits of the Company made during the immediately three
preceding financial years, the Board shall in its report made under Clause
(o) of sub-section 3 of Section 134 of the Companies Act, 2013, specify
the reasons for not spending the amount and ensure that the requirements
w.r.t. unspent amount whether for an ongoing project or otherwise are
complied.
G. ROLE OF CSR COMMITTEE:

The CSR Committee shall consist of 3 or more Directors out of which atleast
one Director shall be an Independent Director.
The role of the CSR Committee will be guided by the Act,
Rules and any circulars / notifications issued by the MCA.
The role of CSR Committee shall include:
  Formulating and recommending to the Board of Directors the CSR policy
and indicating activities to be undertaken.
 Recommending the amount of expenditure for the CSR activities.
 Monitoring CSR activities from time to time.
H. SHCIL FOUNDATION:

 As specified under the Regulation no.4 (2) of the CSR Rules, 2014, the
Board of a Company may decide to undertake its CSR activities approved
by the CSR Committee through a registered trust. As per the general
circular no 21/ 2014 issued by the MCA dated June 18, 2014, a
‘registered trust’ would include trusts registered under the Income Tax
Act. 15.
 SHCIL Foundation Trust is a public charitable trust with Stock Holding
as a Settlor. The Trust is registered under Section 12(A) of Income Tax
Act, 1961 for public charitable purposes. Currently, the Trust with
support from Stock Holding-CSR policy Page 7 of 10 .
 Stock Holding Volunteers reaches out to the underprivileged and
deprived sections of the Society.
 CHAPTER NO 5:

CUSTODIAL SERVICE

Stock Holding was incorporated in 1986 at the initiative of the Government and
commenced Custody operations in 1988 and since then has been a pioneer &
leader in Custody Services presently managing an AUC of approximately USD
535 Billion of which the institutional assets are approximately 235 Billion USD.
Today our services cater to a diverse set of Domestic & Cross-Border investors.
Stock Holding’s elite client list includes Large Financial Institutions, Insurance
Companies, Banks, Mutual Funds, Foreign Portfolio Investors, Pension Funds
(regulated by PFRDA), Retiral Funds (Pension/ Provident/ Gratuity/
Superannuation Fund), Alternative Investment Funds & Foreign Direct
Investors. Stock Holding also holds a ‘No Action Letter’ issued by US SEC
under section 17(f)5 of the SEC Regulation enabling us to offer Custody
Services to US based funds
5.1 CLEARING AND SETTLEMENT SERVICE:
 Smooth Straight Through Processing (STP) systems with a choice of two
reputed service providers, enabling the competitive advantage of efficient
settlements.
 Seamless monitoring and constant updates on failed trades and status
(T+2 basis)
 Daily verification of settlements (Normal/Auction), thus mitigating
systemic risks.
 Efficient fund transfer facilities offering flexibility of settlement of funds
through wide panel of banks having RTGS (Real Time Gross Settlement)
capabilities.
 Effortless handling of residual trades in physical mode, since it has the
necessary infrastructure in place.
5.2 CUSTOMISED REPORTING:

 Customised reporting (delivery by paper & electronic media) to provide

maximum value for clients
 Daily Saleable Holding Report provided before market hours to facilitate
trading.
 Timely Put/Call Intimations
 Forecast of redemptions and corporate actions.

5.3 PREMIUM OFFERINGS:

 Online reporting / web - based of market information
 New Issue services i.e. handling IPO applications, allotments, open
offers, buy-backs, ADR/GDR, etc..
 Daily verification of settlements (Normal/Auction), thus mitigating
systemic risks.
 Corporate Actions viz. Calculation of entitlements, benefit collections,
Cheque/Warrant deposits, reconciliation and follow-ups.

5.4 TECHNOLOGY:

 Stock Holding has a dedicated in-house information technology

support, which has won laurels from the Smithsonian Institute,
Washington and the Computer Society of India for innovative use
of technology. Stock Holding uses leased lines, V-SATS (Very
Small Aperture Terminals), Multi Protocol Label Systems, Fibre-
optics, WIMAX, CDMA, ADSLOVPN, FTTHOVPN and Radio links
to ensure redundant connectivity to clients, stock exchanges and
depositories, besides maintaining a ‘hot-site disaster recovery’
using mirroring of data. The technology used ensures that high
 volume time critical transactions are handled within a secured
environment, with a zero error approach towards delivery of
products and services and a single window view of business. The
sizable (over 1.2 terabytes) Oracle database is efficiently managed
in a secure environment using adequate Network Security
(Firewall, Proxy, Intrusion Detection Systems, Intrusion Prevention
Systems) while the Internet products have built in PKI features.

5.5 WEB-DELIVERY:

 Daily trades reports, mark-to-market profit/loss reports, collateral margin

reports, account statements, outstanding position reports, span margins
requirement report, and any other relevant reports.

5.6 ASSEST SERVICING:

 An exhaustive cross-country database of Corporate Events, Book

Closures, R&T Agents, Depositories, Stock Exchanges as well as other
industry-related information assiduously built up by continuous tracking
of Company, Exchange & Depository announcements by dedicated
Databank Team.
 A dedicated Corporate Actions team to ensure the timely forecast of all
corporate actions & benefits accruing on client holdings
 The handling of all instrument types listed on both exchanges Bombay
Stock Exchange & National Stock Exchange, money market instruments
(CPs & CDs), debt instruments PTC’s (Pass through certificates).
 Tracking data for unlisted securities
 CHAPTER NO 6:

CORPORATE STRUCTURES

The Stock Holding Corporation has three subsidiaries:

 SHCIL Services Ltd (stock brokering services)

 Stockholding Document Management Services Limited (provides end-to-end
document storage and digitization services)
 Stockholding Securities IFSC Limited (A SEBI registered intermediary operating out
of GIFT IFSC, Gandhinagar, Gujarat and catering to Eligible Foreign Investors
(EFIs), FPIs and NRIs from FATF compliant jurisdictions as of now)

6.1 Opportunity to acquire stake in SHCIL, India’s

largest custodian & depository participant
6.2 Wide range of services offered to Institutional and Retail
customers, centred around SHCIL’s core capabilities
6.3 Market leadership in established businesses and fast growing
new businesses…
Led by sustainable differentiators for market
leadership
Differentiators of key business
segments

Institutional Segment Retail Document

Segment Management
 CONCLUSION
SHCIL has been able to maintain a lead position in a highly competitive
environment which is no small achievement by any standards To further
augment its client base and maintain the lead SHCIL has decided to leverage on
the strength to identify new products which would enable it to achieve the
desired objectives Being un important constituent of the capital market the
future of SHCIL is extricable intertwined with the fortunes of the capital market
in general and the stock market in particular. SHCIL is aware of the need to
utilize the existing infrastructure and exploit its strength to the maximum
The advisors should target for more and more young investors. Young investors
as well as persons at the height of their career would like to go for advisor due
to lack of expertise and time. The advisor may try to highlight some of the value
wide benefits of MFs such as tax benefit, rupee cost averaging, and systematic
transfer plan, rebalancing to these benefits are not offered by other options
single handed. The advisor should try to increase the spectrum of services
offered. The advisor should try to charge a nominal fee at the beginning but if
not possible then they could go for offering more services and benefits at the
existing rate They should also maintain their decency and follow the code of
ethics so that the investors could trust upon them Thus the advisor should try to
attract more and more persons and turn them into investors and finally their
clients.
It has already introduced several innovative products like sell-n-cash, cash-on-
pay out, loans against Demat shares, fund invest, mutual fund distribution,
Equably, etc. the objective is to provide the investors different investment
options and financial products all under the same roof - a one stop shop for all
financial products and services
SHCIL suits if you are someone who has almost no trust in any stockowner in
India and wants to play completely safe.
 SUGGESTIONS

As the number of DPs has increased in recent years efforts should he made to provide best
services to their existing as well as potential clients. SHCIL should adopt an intensive
marketing campaign to promote new products the cost structure needs to be revised so as to
attract potential customers and compete in the market SHCIL should create awareness among
the public of the products that it currently deals with in order to provide various investment
opportunities for the investing community, they should create more employment
opportunities so as to tap best workforce available in the market
There should be a HR department on high priority basis because they can understand the
nature of employees, their need and demands or requirements. Can try to understand their
problem or any grievances and can give immediate solutions to it, and create working
atmosphere for the employees so that they can wort smoothly and happily without any
tension or fest in mind. Long term and mid-term investor are not giving more emphasis to
safe and service of broker. Those are the investors who want to create wealth: they don't have
speculative intention or short-term gain So if they can get best of the services from broker
they will get secured to some extent. Data also indicates one thing that investors are prefer to
keep their demat and broking account a same place (with same company).
This might be because of charges and conveniences, generally as there are now many players
in the DP and BROKING segment. This competition leads to give
services better and cheaper and as a result they are offering such packages that provide
customers convenience as well as fair charges. Here one positive side of the SHCIL, I would
like to lime light on that is the customer convenience are providing on time. It is also
appreciable for SHCIL is that, SHCIL Rajkot has got very enthusiastic, hardworking,
intelligent, and sincere and customer-oriented staff, which is very important for ever
organization. One point of SHCIL, which I want to note here is that, for surviving in this
competitive era, SHCIL will have to decrease their demat charges as well as their broking
charges which are little bit higher than the other competitors.
 BIBLIOGRAPHY
Websites:
• Www.stoskholding.com
• www.sebiindia.com
• www.nsdl.com
• www.monecontrol.com
• www.sharekhan.com
• www.investopedia.com
• www.icicidirect.com