PRESENTATION ON DEMAT ACCOUNT

Presented By :-

Presented To:Mrs. J.J.Maini (HOD MBA Dept.)

Steffi sehdev Class Roll No. : 838 Uni. Roll No.:1174496 M.B.A. 3rd Sem.

ABOUT COMPANY
Angel Bookings tryst with excellence in customer relations began more than 20 years ago. Angel Group has emerged as one of the top 10 retail broking houses in India and incorporated in 1987. Today, Angel has emerged as a premium Indian stock-broking and wealth management house, with an absolute focus on retail business and a commitment to provide "Real Value for Money" to all its clients.

CONTD

Incorporated:1987 BSE:1997 NSE membership:1998 Depository participant with CDSL

LOGO OF ANGEL BROKING

ANGELS VISION

ANGEL TRADE BROKERAGE CHARGES

Account opening fees: Stock trading account - Rs 575/Demat account - Rs 200/Commodity trading - Rs 625/Brokerage: If Initial margin cheque is more then 25,000 Intraday (Buy & Sell): Rs. 0.04% per trade Delivery (Buy & Sell): Rs. 0.40% per trade F&O (Buy & Sell) : Rs. 0.04% per trade If Initial margin cheque is more then 50,000 Intraday (Buy & Sell) : Rs. 0.03% per tradeDelivery (Buy & Sell): Rs. 0.30% per trade F&O (Buy & Sell): Rs. 0.03% per trade If Initial margin cheque is more then 3,00,000 I\intraday (Buy & Sell) : Rs. 0.015% per trade Delivery (Buy & Sell): Rs. 0.15% per trade F&O (Buy & Sell): Rs. 0.015% per trade If Initial margin cheque is more then 5,00,000 Intraday (Buy & Sell): Rs. 0.01% per trade Delivery (Buy & Sell): Rs. 0.10% per trade F&O (Buy & Sell) : Rs. 0.01% per trade

COMPANY BUSINESS

1) 2) 3) 4) 5) 6) 7) 8) 9)

Equity trading. Commodities. Portfolio Management Services. Mutual Funds. Life Insurance. Personal Loans. IPO. Depository Services. Investment Advisory.

CONSISTUNENTS OF DEPOSITORY SYSTEM

The depository system comprises of: i) Depository ii) Depository Participants (DPs) iii) Companies/issuer iv) Beneficial owner

LEGAL FRAME WORK OF DEPOSITORY

NATIONAL SECURITIES DEPOSITORIES LIMITED

NSDL is the first and largest depository in India, and established in August 1996 It has 267 depository Participants (as on 13.12.08)

PROMOTERS OF NSDL
Industrial Development Bank of India Limited 2. Unit Trust of India 3. National Stock Exchange of India Limited
1.

SHAREHOLDERS OF NSDL

State Bank of India Oriental Bank of Commerce Citibank Standard Chartered Bank HDFC Bank Limited The Hongkong and Shanghai Banking Corporation Limited Deutsche Bank Dena Bank Canara Bank Union Bank of India

CENTRAL DEPOSITORY SERVICES (INDIA) LIMITED

This is the second depository in India. This was formed and registered in 1999. It has 455 DPs as on 4.08.08

PROMOTERS OF CDSL

Bombay Stock Exchange Limited Bank of India, Bank of Baroda, State Bank of India and HDFC Bank

SHAREHOLDERS OF CDSL

Standard Chartered Bank Centurion Bank of Punjab Ltd Canara Bank Union Bank of India Bank of Maharashtra Jammu and Kashmir Bank Limited The Calcutta Stock Exchange Association Limited Others

What is Demat

Conversion of physical securities into electronic form

Demat Account, a short form of saying Dematerialized Account is a type of banking account which dematerializes the paper based physical shares

Demat-benefits ?

Easy and convenient way to hold securities Immediate transfer of securities No stamp duty on transfer of securities Safer than paper-shares (earlier risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc. are mostly eliminated) Reduced paperwork for transfer of securities Reduced transaction cost

PROCEDURE OF OPENING
ACCOUNT
CLIENT/BO

DP

CDSL

ISSUER/ROT

Final confirmation From CDSL

Procedure of Opening An Account

Investor will choose a DP for the purposes of opening beneficiary account. The choice of the investor may be based on convenience, comfort, services offered, cost or any other reason. BO to open a demat account with a DP. BO Fill in a Demat Request Form (DRF) and submit the same with the physical Certificate/s to the DP for dematerialization. DP to verify that the DRF has been filled correctly. DP to Setup a demat request on the CDSL system. DP Send the certificates to the Issuer/Registrar an transfer Agent (RTA). confirms the demat request. On receiving confirmation from Issuer/RTA, CDSL credits an equivalent number of securities in the demat account of the BO maintained with CDSL.

Contd.

For the purpose of verification, investor has to submit the following documents along with the prescribed account opening form.

1. 2. 3.

Proof of Identity (POI) (voter card, pan card, driving license etc.) Proof of Address (POA) (ration card, any pass book copy voter id card etc.) Passport-size photograph

Contd.

Copy of PAN card The DP will also provide a copy of the DP-Client agreement.

Some other aspects:

In case of the joint account for the beneficial owners, all the joint holders have to sign the account opening form. The investor will submit to his DP the duly filled in account opening form & DP-client agreement along with the documents. On successful opening of the account, the DP will give: Client Id - an eight digit number to be used along with DP Id for any future transactions. Delivery Instruction slip book.

1.

2.

Some other aspects

contd.

More than one demat account can be opened in the similar / identical name and order with the same DP or different DPs.

The time involved in the process

Dematerialisation is normally completed

within 15 days after the share certificates have reached the issuer/their R&T agent. Thus it will take only a month from the date one hands over shares, to receive Demat Credit.

Trading & Settlement in Dematerialised Securities

If you are a buyer:

Purchase securities in any of the S.E.s(connected to NSDL) through a broker of your choice and make payment to your broker Broker arranges payment to clearing corpo./clearing house of the stock exchange Broker receives cr. in his clearing a/c Broker can directly transfer these securities to your a/c Broker gives instructions to your DP to debit his clearing a/c and credit your depository a/c. You give instructions to your DP for receiving Cr. If instructions match your a/c with your DP is credited

Trading & Settlement in Dematerialised Securities

If you are a seller Sell your demat securities in any of the Stock Exchanges linked to NSDL through a broker You give instructions to your DP for Debit of your Depository a/c and Credit of your brokers clearing member a/c at least 24 hrs You receive the payment accordingly.

OBJECTIVE

The objective of my project is to understand the co., its achievements and tasks, products and services and also to collect information about its services and products. To know about the role of demat account with CDSL To describe the process of opening a DEMAT account

RESEARCH METHODOLOGY

Sampling Plan:
The for the study by sample was selected Convenience sampling method. With this method, the researcher uses subjects that are easy to reach.

Sample unit:
Under this study the customers of Bathinda city are considered as the sample unit.

Sample size
The sample for research consisted of 50 people The sample size was restricted to 50 because of financial & time constraint.

SOURCES OF DATA:

In this study I have collect both the primary and secondary data.

PRIMARY DATA: Primary data is a first handed collected data. Primary data are obtained from the opinion of the clients of demat holders. SECONDARY DATA: Secondary data are those data, which have been collected and compiled earlier for some other purpose by various sources. I have collected the secondary data here in following ways: Web resources Company journals Trade Magazines

DATA COLLECTION METHOD

DATA ANALYSIS TECHNIQUE Technique used for data analysis is percentile method for analysis of data.

DATA ANALYSIS AND INTERPRETATION

Are you aware of demat account?

R es pons e

yes no

Duration for which investor has been transact in stock exchange

R es pons e
45% 40% 35% 30% 25% 20% 15% 10% 5% 0% les s than 1 year 1 year 2 more year than 2 year les s than 1 year 1 year 2 year more than 2 year

Do you trade frequently or occasionally

R es pons e
70% 60% 50% 40% 30% 20% 10% 0%
tly en s io na ly

frequently oc c as ionaly

fre

qu oc

ca

Which type of scripts you have

responses

80% 60% 40% 20% 0% physical demat

Do you convert shares electronically

res pons e

yes no

Are you satisfied with demat service provider

res pons e

yes no

. Problems faced by customer relating to trade

res pons e
45% 40% 35% 30% 25% 20% 15% 10% 5% 0% bad delivery problem no problem

bad delivery problem no problem

LIMITATIONS

The results may not applicable due to regional constraints because it is not universally applicable Money was also considered as a major constraint Lack of information sources for analysis part Due to lack of time, it was not possible to approach all people. Time period of 6 weeks is very small to carry out a bigger project. Although the staff of ANGEL is cooperative it devoted enough time on me but due to busy schedule I was unable to gain knowledge.

CONCLUSION AND RECOMMENDATIONS

As many people who dealt in share market are aware of angels name but not of its services. So company should advertise its services so that people can be made aware of services. Most of people are not finding any spare time to convert their shares electronically, so that co. should approach to such people at their door step to open their demat account. As far as preferences regarding opening of demat account is concerned then it mainly prefer two factors i.e. service and trust. so it become necessary for company to take care of two factors. From the above survey and observation it is found that most of the people who are trading in share market belongs to the employee group, next comes the business men and other class of income people.