GOOD AFTERNOON

Topic of Project:

Study On Progress and Investors Perception

Towards Dematerialization of Shares

Presented By:
Vriti Narayan Bohra
JKPS/PGDM/09/57
Edelweiss Group-Introduction
Edelweiss, a rare flower
found in Switzerland. A
graphic flower that represents
ideas. Around it, the
protective arms of the letter
‘E’: They believe ideas create
STUDY ON REATIONSHIP MARKETING IN CAPITAL
wealth, MARKET
but values protect it.
WITH SPECIAL REFERENCE TO EDELWEISS BROKING
It is the practice ofLTD.
this core
thought that has led to
Edelweiss becoming one of
the leading financial services
company in India.
Edelweiss Group-Introduction

Leading diversified financial services organization

Incorporated in 1995 as an investment bank –focus on Private

EquitySTUDY ON REATIONSHIP MARKETING IN CAPITAL MARKET
Syndication
WITH SPECIAL REFERENCE TO EDELWEISS BROKING LTD.
Key businesses now: Investment Banking, Brokerage -Institutional
and Retail, Asset Management, Financing and Treasury.

Group net-worth of INR 24.7 bn (~USD 500 mn)

Edelweiss Group-Introduction

Total employee strength ~1200.

One of the largest equity research teams

STUDY ON REATIONSHIP
–Differentiated MARKETING IN CAPITAL MARKET
research capabilities
WITH SPECIAL REFERENCE TO EDELWEISS BROKING LTD.
–Only Analytics team in India
–Highly respected and acknowledged Thematic Research
Retail Broking & Distribution

New growth initiative at Edelweiss –targeting the mass affluent

Centralized model of online (www.edelweiss.in) and tele-calling

based broking
STUDY ON REATIONSHIP MARKETING IN CAPITAL MARKET
WITH SPECIAL REFERENCE TO EDELWEISS BROKING LTD.
Strong product offering based on delivering services based on
client profile
Retail Broking & Distribution

One of the widest Research offering for individual clients

Current client base of around 48,000.

STUDY ON REATIONSHIP MARKETING IN CAPITAL MARKET
WITH SPECIAL REFERENCE TO EDELWEISS BROKING LTD.
Research Products:

Edelstar

Quant Basket
Researches:

Institutional Equities Research - first in India to be offered to

individual clients

Macro and Micro economy research reports on regular basis.

Fundamental and Technical analysis to pick the right stock

Brokerage Plans:

Advance Brokerage (ADB) Plans:

Brokerage Plans:

Advance Brokerage (ADB) Plans:

Brokerage Plans:

Standard Plans (For Margin Money):

Edelweiss Presence:
 Objectives of the Study
 To Study the progress of Dematerialization of
Shares.
 To identify the investor’s awareness towards

dematerialization of Shares.
 To examine the satisfaction level of the investors

towards the benefits of dematerialization of Shares.

 To identify the investor’s opinion towards various

charges levied by the depository participants.

 To offer suggestions based on the result of the

study.
RESEARCH DESIGN
Type of Research:
◦ The research was a Descriptive Research.

Sampling Technique:
◦ Random sampling is the sampling technique I have used in
my research.
Sampling Area:
◦ Gurgaon, NCR
 
Sample Size:
◦ 100
DATA COLLECTION
 
Data collection means collections of information, facts or figures for
the problem.
 
SOURCES OF DATA

• Primary Data

• Secondary Data

Primary Data:
 
 Questionnaires
 Personal Interview

Secondary Data :
 News papers & magazines
 Research articles
 Reference Books
 Websites.
FIELD WORK
The survey was conducted for 8 weeks in Gurgaon, NCR. The survey was
conducted at various financial markets like SCF market, Sector-14
market etc.
 

Data Representation:
To represent the data collected some graphical charts, tables and
statistical tools are used.
 

RESEARCH TOOLS
Software: Microsoft Excel
Progress of Dematerialization
120
105.85
96.86
93.72
100

79.03
75.6
80
63.01

60 52.03

37.18
34.21
40
23.22

20
3.95

0
Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10

(Data- in lacks)
40000

35114
35000

30000 28287

25000 23690 26900

20270 24228 Actual Demat Quantity(Shares in

20000 21557 Crores)
17472
18886 Trend Demat Quantity(Shares in
15000 Crores)
12866 16215

13543
10000 8369
6876 10872
5167 8201
5000 3721
1550 5530
2858
0
187
Jan-00Jan-01Jan-02Jan-03Jan-04Jan-05Jan-06Jan-07Jan-08Jan-09Jan-10
6000000 5527479

4798222
5000000

4000000

2873508
3000000

1861288
2000000

1011397

1000000 629159
247369
28545 76003 128252

0
Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09
12000
3891

10000
3422

8000
7081
2963
6000 Trend Demat Quantity(Shares in
2499
Crores)
4982
2035 Actual Demat Quantity(Shares in
4000 Crores)
1571
3125
1106 2722
2000 642 1908
1401
178 821
-286 482
0 57 192
Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09

-2000
Investor’s awareness towards
dematerialization of Shares
Nature of occupation
Objective of Investment
Knowledge of share market
Awareness about Demat Account
70

70

60

50

40

30

20 15
10

10 5
0

0
Highly Aware Aware Neutral Not Aware Highly not Aware
Procedure of account opening
60 55

50

40

30 25

20

10
8
10
2

0
Highly Aware Aware Neutral Not Aware Highly not Aware
International Securities Identification
Number
45

45
40

40

35

30

25

20

15
10

10
5

5
0

0
Highly Aware Aware Neutral Not Aware Highly not Aware
Mode of receiving corporate benefits
30

30

25

20 20

20

15 15

15

10

0
Highly Aware Aware Neutral Not Aware Highly not Aware
Transaction Statement
40

40

35
30

30

25

20
15

15
10

10
5

0
Highly Aware Aware Neutral Not Aware Highly not Aware
Nomination
43
45

40

35

30

25
20
18
20
14
15

10
5

0
Highly Aware Aware Neutral Not Aware Highly not Aware
Transmission of Demat securities
30

30
26
25

25

20
16

15

10

5 3

0
Highly Aware Aware Neutral Not Aware Highly not Aware
Rematerialization of Demat securities

35
31

30

24
23
25

19
20

15

10

3
5

0
Highly Aware Aware Neutral Not Aware Highly not Aware
Lending & Borrowing of Demat
securities
40 36

35
30

30 27

25

20

15

10 7

5
0

0
Highly Aware Aware Neutral Not Aware Highly not Aware
Freezing of Demat Account
30

30

24
25 23

20

15
12
11

10

0
Highly Aware Aware Neutral Not Aware Highly not Aware
Reduction in paper work
38
40

35

30 27

25
20

20

15
9
10
6

0
Highly Aware Aware Neutral Not Aware Highly not Aware
Quick Transfer of ownership
33
35

30

25 22 22

20
16

15

10 7

0
Highly Aware Aware Neutral Not Aware Highly not Aware
Reduction in Brokerage
40 37

35

30

25
21
19
20

13
15
10

10

0
Highly Aware Aware Neutral Not Aware Highly not Aware
Elimination of Bad deliveries
40 37

35

30

25 21
19
20

13
15
10

10

0
Highly Aware Aware Neutral Not Aware Highly not Aware
Faster Settlement Cycle
60
53

50

40

30

21

20
12 11

10
3

0
Highly Aware Aware Neutral Not Aware Highly not Aware
No Courier/postal charges
25
24
25

20

20

16
15

15

10

0
Highly Aware Aware Neutral Not Aware Highly not Aware
Low transaction cost
40

40

35

30

25
20

20
15 15

15
10

10

0
Highly Aware Aware Neutral Not Aware Highly not Aware
No Stamp duty
35

35

30
25

25
20

20
15

15

10
5

0
Highly Aware Aware Neutral Not Aware Highly not Aware
Electronic credit of shares
38
40

35 32

30

25

20
15

15
10

10
5

0
Highly Aware Aware Neutral Not Aware Highly not Aware
No odd lot problem
30
27

25
22
20

20 18

15 13

10

0
Highly Aware Aware Neutral Not Aware Highly not Aware
Faster distribution of benefits
25 23
22
21

20 18

16

15

10

0
Highly Aware Aware Neutral Not Aware Highly not Aware
Saves transaction time
35

35

30
25

25
20
18
20

15

10

5 2

0
Highly Aware Aware Neutral Not Aware Highly not Aware
Periodic Status report
29
30
27

25
21

20

15
12
11

10

0
Highly Aware Aware Neutral Not Aware Highly not Aware
Investor’s opinion towards various
charges levied by the depository
participants
Account Opening charges
13%

48%
High
Medium
Low

39%
Annual Maintenance charges
19%

52% High
Medium
Low

29%
Custodian Charges
21%
24%

High
Medium
Low

55%
Transaction charges
25%
29%

High
Medium
Low

46%
Market/Off market Charges
25%

39%

High
Medium
Low

36%
Pledge/Hypothecation charges
26%

50%
High
Medium
Low

24%
Dematerialization Charges
28% 28%

High
Medium
Low

44%
 Satisfaction Level Of Investors
towards Demat Account
35

35

30

25
21
19
20
16

15

9
10

0
Highly Satisfied Satisfied Neutral Dissatsfied Highly Dissatisfied
Investor’s awareness towards dematerialization of
Shares
3 16 25 26 30
Transmission of Demat Securities

20 43 14 18 5
Nomination

10 40 30 15 5
Transaction Statement
Highly Aware
Aware
15 30 20 20 15
Mode of receiving corporate benefits Neutral
Not Aware
50 10 45 40 Highly not Aware
International Securities Identification Number

25 55 10 8 2
Procedure of account opening

15 70 10 50
De Mat Account

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
 Cont….
12 53 21 11 3
Faster settlement Cycle

6 42 20 18 14
Elimination of Bad deliveries

10 37 21 19 13
Reduction in Brokerage

22 33 22 16 7 Highly Aware
Quick Transfer of ownership
Aware
Neutral
27 38 20 9 6
Reduction in Paper work Not Aware
Highly not Aware
11 24 30 23 12
Freezing of Demat Account

7
0 36 27 30
Lending & Borrowing of Demat securities

3 24 31 23 19
Rematerialization of Demat Securities

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
 Cont….
11 21 12 29 27
Periodic status report

25 35 20 18 2
Saves transaction time

16 23 22 21 18
Faster disbursement of benefits

13 20 27 22 18 Highly Aware
No odd lot problem
Aware
Neutral
5 32 10 15 38
Electronic credit of shares Not Aware
Highly not Aware
5 35 20 15 25
No stamp Duty

10 15 15 20 40
Low transaction cost

16 20 25 24 15
No courier/Postal charges

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
 Charges Levied By Depository Participant

28 44 28
Dematerialization Charges

50 24 26
Pledge/Hypothecation Charges

25 36 39
Market/off market charges

High
25 46 29
Transaction charges
Medium
Low
22 57 25
Custodian Charges

19 29 52
Annual maintenance charges

48 39 13
Account opening charges

0 10 20 30 40 50 60 70 80 90 100
Suggestions & Recommendations
Suggestions for the Study:

 The Investors should be provided with their statement of accounts at regular

intervals without any delays after the transaction takes place. The depository
participants should also inform the investors about their day to day trading
activities and their account balance
 
 Depository Participants should send pamphlets and magazines containing
information about the latest changes in the demat segment to their client. When
there are any new facilities offered by the depositories to the investors, it should
be properly intimated to investors. Depository participant are also advised to
conduct a number of investors awareness programs and advertise their offer of
services in various newspapers and popular magazines.

 The investors can put their complaints to their depository participants and in case
of failure of depository participants to resolve the complaints, then the investor
can write to the Investor Grievance cell of NSDL or CDSL.
 
Cont….
 NSDL and CDSL are asked to create a Net Forum/E-Forum in order
to exchange their market information regularly between the
investors and depository or investors and depository participants
or depository Participant and depository.

 Depository Participants can make it a regular practice to organize

frequent meetings for their investors so as to strengthen their
relationship with the existing investors. This would definitely give
an opportunity for the DPs to take note of grievances if any and
offer prompt settlement of issues.

 In order to retain the investors, the depository participants should

offer their services promptly and kindly, In addition to this,
Depository Participants can also select one long time investor year
by year and provide them with Gifts.
Conclusion
Now a days, share markets occupy a key role both in the
development of economy and individual investors in their
business, The Indian capital market had thus witnessed
numerous changes in the recent years, and one such
change is Dematerialization.
Dematerialization of securities play a vital role in
improving and modernizing the capital market and
enhance the levels of investor's perception measures
which aim at eliminating the bad deliveries and forgery of
shares. Thus, the study shows a clear picture on the
progress of investor's accounts and dematerialization of
shares in NSDL and CDSL and the Investor's perception
towards Dematerialization of Shares.
Thank You

Any Query