DEMAT Account Openings
Content
“DEMAT ACCOUNT OPENING”
PROJECT SUBMITTED TO ANNAMALAI UNIVERSITY, IN PARTIAL FULFILMENT OF THE REQUIREMENTS
FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION IN APPLIED MANAGEMENT
By
Dinesh Soni
Enrolment Number : 4740700464 Under the guidance of Mr. Sunil Asopa Branch Manager Arcadia Shares & Stock Brokers Ltd. Maan Ji Ka Hatha, Paota, Jodhpur
DIRECTORATE OF DISTANCE EDUCATION
ANNAMALAI NAGAR 2009
“DEMAT ACCOUNT OPENING”
PROJECT SUBMITTED TO ANNAMALAI UNIVERSITY, IN PARTIAL FULFILMENT OF THE REQUIREMENTS
FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION IN APPLIED MANAGEMENT
By
Dinesh Soni
Enrolment Number : 4740700464 Under the guidance of Mr. Sunil Asopa Branch Manager Arcadia Shares & Stock Brokers Ltd. Maan Ji Ka Hatha, Paota, Jodhpur
DIRECTORATE OF DISTANCE EDUCATION
ANNAMALAI NAGAR 2009
DECLARATION
I hereby declare that the project entitled “DEMAT ACCOUNT OPENING” submitted for the Degree of Master of Business Administration in Applied Management is my original work and the project has not formed the basis for the award of any degree, diploma, associate ship, fellowship or similar other titles. It has not been submitted to any other university or Institution for the award of any degree or diploma.
Place: Jodhpur Date: 05/03/09
Name: Dinesh Soni Enrolment No.: 4740700464
ACKNOWLEDGEMENT
It is with real pleasure that, I record my indebtedness to my project Guide, Mr. Sunil Aasopa for his counsel and guidance during the preparation of this project. I am grateful to Centre Head Mr. Praveen Mehta for providing me an opportunity to prepare this report. I wish to record my sincere and special thanks to Mr.Amit Sharma, Mr.Ashish My thanks are due to Mr.Sunil Aasopa, Mr. Hemendra to give me great and valuable support.
Place: Jodhpur Date: 05/03/09
Name: Dinesh Soni Enrolment No: 4740700464
TABLE OF CONTENTS
CHAPTER – I EXECUTIVE SUMMERY CHAPTER – II COMPANY PROFILE
INTRODUCATION ORGANISTION STRUCTURE
INFRA-STRUCTURE SETUP PRODUCT & SERVICES
CHPTER – III DEMAT ACCOUNT
INTRODUCATION OF DEMAT ACCOUNT DEMAT ACCOUNT PROCESS REQUERMENT OF DOCUMENTS BENEFITS OF DEMAT ACCOUNT
CHPTER – IV RESEARCH METHODOLOGY
OBJECTIVES & SCOPE OF STUDY DATA ANALYSIS
SOURCE OF DATA
CHPTER – V FINDING & ANALYSIS
PROJECT FINDING RESEARCH & ANALYSIS
CHPTER – VI BIBLIOGRAPHY
CHAPTER – I
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
An organization is made up of competencies, which we can loosely call 'capital'. Its key components are 'customer capital', 'structural capital' and 'human capital'. Broadly a company's strength arises out of its customer base, which purchases its products. The project has broadly been carried in around Jodhpur and Other areas. In the initial phase I visited a large number of domestic and Multinational companies in Jodhpur area have and gathered information as far as possible for the benefit of the project at large. After conducting the study within some constraints, my findings were as far As transparent but chances of error are possible as the saying “To err is Human “ In this short report you will find the description of Demat Account Opening, the process followed and the basic requirements for the process. As the report progress towards conclusion it gives fair idea about the needs of this service, prospects, competitors and reason for all with some facts and figures and supporting articles
CHAPTER – II
COMPANY PROFILE
INTRODUCATION
ORGANISTION STRUCTURE INFRASTRUCTURE SETUP PRODUCT & SERVICES
INTRODUCATION
Arcadia came to life in 1995, right on the wave of a post-liberalisation market economy. As financial services became a major contributor to economic growth, Arcadia has steadily shaped into a leading financial service provider.
In 1995, we were a small company with just 5 employees. Today, we have a market presence across the country, with over 275 branches & franchaisee outlets. We have established a strong retail network not only in metros but also in tier two and tier three cities. Traditionally, our operation was concentrated in fast-moving capital market of Western India. But sensing great potential, we have launched strong expansion plans in the North and the South.
ORGANISATION STRUCTURE
Mr. Antony Sequeira (Founder, Managing Director) The chief promoter of Arcadia has been associated with capital markets for over 26 years. Mr. Sequeira has a rich 19 years of banking experience with Corporation Bank & Syndicate Bank. For six years he was the Chief Executive of M/S Uday S. Kotak, now known as Kotak Securities. Mr. Sequeira is respected in the organization for being a complete taskmaster. His thrust for client satisfaction is an energizing force within the organization. He is completely committed towards making Arcadia a one-stop financial service provider. Mr. Nitin Brahmbhatt (Director) The director is an arbitrage consultant by profession, with 25 years experience in the capital market. Between 1985 and 1995, he played the role of a leading market maker in the Bombay Stock Exchange. He has a rich experience in the field of arbitrage. The credit for building the arbitrage team for Arcadia goes to him. It is his innovative ideas that have made Arcadia a leading arbitrage player in the country. Under his leadership, Arcadia has created a mammoth network of branches & franchisees.
INFRA-STRUCTURE SETUP
Wide branch network of 275+ branches (Covering A, B, C cities &
Remote Locations).
Well Educated and highly trained “Feet on Street” to undertake Individual Personal Contact.
Rapid expansion as per user location and user requirements.
Working symbiotically without disturbing clients set up
PRODUCT & SERVICES
Since Arcadia is a service based company therefore the product are of nothing but the service. Provide pre and post disbursement/activation turnkey solutions so as to bridge information the gap between the principals and their prospective/existing customers. This systematic presence-building and efficient delivery of service has put Arcadia among the fastest growing retail broking houses in the country, with memberships in:
(1)
NATIONAL STOCK EXCHANGE OF INDIA (NSE) The National Stock Exchange of India Limited (NSE) is a Mumbai-
based stock exchange. It is the largest stock exchange in India in terms of daily turnover and number of trades, for both equities and derivative trading. Though a number of other exchanges exist, NSE and the Bombay Stock Exchange are the two most significant stock exchanges in India, and between them are responsible for the vast majority of share transactions. The NSE's key index is the S&P CNX Nifty, known as the Nifty, an index of fifty major stocks weighted by market capitalization.
(2)
BOMBAY STOCK EXCHANGE (BSE) The Bombay Stock Exchange Limited (BSE) (formerly, The Stock
Exchange, Mumbai; popularly called The Bombay Stock Exchange, or BSE) is the oldest stock exchange in Asia and has the greatest number of listed companies in world, with 4700 listed as of August 2007. It is located at Dalal Street, Mumbai, India. On 31 December 2007, the equity market capitalization of the companies listed on the BSE was US$ 1.79 trillion, making it the largest stock exchange in South Asia and the tenth largest in the world.
(3)
MULTI COMMODITY EXCHANGE (MCX) Multi Commodity Exchange (MCX) is an independent commodity
exchange based in India. It was established in 2003 and is based in Mumbai. It has an average daily turnover of around US$ 1.55 billion [citation needed]. MCX offers futures trading in Agricultural Commodities, Bullion, Ferrous & Nonferrous metals, Pulses, Oils & Oilseeds, Energy, Plantations, Spices and other soft commodities. MCX has also setup in joint venture the National Spot Exchange a purely agricultural commodity exchange and National Bulk Handling Corporation (NBHC) which provides bulk storage and handling of agricultural products.
(4) NATIONAL COMMODITY & DERIVATIVES EXCHANGE(NCDX)
National Commodity & Derivatives Exchange Limited (NCDEX) is an online commodity exchange based in India. It was incorporated as a private limited company incorporated on April 23, 2003 under the Companies Act, 1956. It obtained its Certificate for Commencement of Business on May 9, 2003. It has commenced its operations on December 15, 2003. NCDEX is a closely held private company which is promoted by national level institutions and has an independent Board of Directors and professionals not having vested interest in commodity markets.
(5)
DEPOSITORY PARTICIPANT OF CDSL In India, a Depository Participant (DP) is described as an agent of the
depository. They are the intermediaries between the depository and the investors. The relationship between the DPs and the depository is governed by an agreement made between the two under the Depositories Act. In a strictly legal sense, a DP is an entity who is registered as such with SEBI under the provisions of the SEBI Act. As per the provisions of this Act, a DP can offer depositoryrelated services only after obtaining a certificate of registration from SEBI.
(6)
ASSOCIATION OF MUTUAL FUNDS IN INDIA (AMFI) A Mutual Fund is a trust that pools the savings of a number of investors
who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realized are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund:
CHAPTER – III
DEMAT ACCOUNT INTRODUCATION OF DEMAT ACOUNT DEMAT ACCOUNT PROCESS REQUREMENT OF DOCUMENTS BENEFITS OF DEMAT ACCOUNT
•
•
•
INTORDUCATION OF DEMAT ACCOUNT
In India, a demat account, the abbreviation for dematerialized account, is a type of banking account which dematerializes paper-based physical stock shares. The dematerialized account is used to avoid holding physical shares: the shares are bought and sold through a stock broker. This account is popular in India. The Securities and Exchange Board of India (SEBI) mandates a demat account for share trading above 500 shares. As of April 2006, it became mandatory that any person holding a demat account should possess a Permanent Account Number (PAN), and the deadline for submission of PAN details to the depository lapsed on January 2007.
•
DEMAT ACCOUNT PROCESS
1 2. 3. 4. Fill demats request form (DRF) (obtained from a depository participant or DP with whom your depository account is opened). Deface the share certificate(s) you want to dematerialize by writing across Surrendered for dematerialization. Submit the DRF & share certificate(s) to DP. DP would forward them to the issuer / their R&T Agent. After dematerialization, your depository account with your DP would be credited with the dematerialized securities.
•
REQUREMENT OF DOCUMENTS
The extent of documentation required to open a demat account may vary
according to your relationship with the institution. If you plan to open a demat account with a bank, a savings, current and, or other account for which the holder have been issued a check book, such holder has an edge over the non-account holder. In fact, banks usually offer additional incentives to customers who open a demat account with them. Along with the application form, your photographs (with co-applicants) and proof of identity/residence/date of birth have to be submitted. The DPs also ask for a DP-client agreement to be executed on nonjudicial stamp paper. Here is a broad list: - A canceled check, preferably MICR - Proof of Identification - Proof of Address - Proof of Pan card (mandatory) - Recent photographs, one and, or more For proof of identification and, or address self-attested facsimile copies of PAN card, Voter’s ID, Passport, Ration card, Driver’s license, Photo credit card, Employee ID card, Bank attestation, latest IT returns and, or latest Electricity/Landline phone bill are sufficient. While they only ask for photocopies of the documents, they will need the originals for verification.
•
BENEFITS OF DEMAT ACCOUNT
- A safe and convenient way to hold securities; - Immediate transfer of securities; - No stamp duty on transfer of securities; - Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc.; - Reduction in paperwork involved in transfer of securities; - Reduction in transaction cost; - No odd lot problem, even one share can be sold; - Nomination facility; - Change in address recorded with DP gets registered with all companies in which investor holds securities electronically eliminating the need to correspond with each of them separately; - Transmission of securities is done by DP eliminating correspondence with companies; - Automatic credit into demat account of shares, arising out bonus/split/consolidation/merger etc. - Holding investments in equity and debt instruments in a single account.
CHAPTER – IV
RESEARCH METHODOLOGY
OBJECTIVES OF STUDY
DATA ANALYSIS SOURCE OF DATA
OBJECTIVES OF THE STUDY
• Spread awareness about this process. • Find out the companies which like to adopt this technique. • Find out the factors which influence the companies.
• •
What the companies are looking from Demat Account? Gap Analysis between Prospective Customers and Broker Agencies
DATA ANALYSIS
This part of the chapter consists of research work which work which has been undertaken by the researcher before discussing in detail let us have the clear view of some basic concept, Marketing, Marketing Research, Meaning of Survey & its Methods, Meaning of Feedback how it is important There are two types of Research Method. 1) Survey Method 2) Experimental Method
Survey Method
The Survey method is complex operations which require some technical knowledge. Usually three general methods are used for conducting this survey method they are as follows,
(i) (ii) (iii)
Interview/Questionnaire Mail Survey Telephonic Survey
Here in this research work survey method has been widely executed the three phase of this survey method i.e., personal interview/questionnaire, mail survey, telephonic survey.
Experimental Method
This method is more related to the production aspects of an organization. The quality of the ultimate result of continuous research and experiments.
SOURCE OF DATA
Data’s are the useful information or any forms of document designed in a systematic and standardize manner which are used for some further proceedings. One of the important tools for conducting marketing research is the availability of necessary and useful data. Some time the data are available readily in one form or the other and some time the data are collected afresh. The sources of information fall under two categories, Internal Sources and External Sources.
In this particular project the major sources were as follows: Competitive Study Corporate Presentation Objections and their Possible Solutions Association with National and International Clients/Partner While providing customized solutions we learn more
There are two type of source used in project. A. Internal Sources A business organization has definitely to keep certain records such as financial accounting records, sales records, and other information relating to the business process, these records provides ample information, good use can be made by the various information which are organization usually keeps for its own purposes in the future.
B.
External Sources When the information or any forms of document are collected from outside the organization, it basically happens when the internal records are insufficient and the required information is not readily available, the organization will have to depend on the external sources. Here in this case the external sources are internet,
magazine, paper cutting etc. In external sources the research has been broadly divided in to two categories.
CHAPTER – V
FINDING & ANALYSIS
PROJECT FINDING RESULT OF SURVEY
PROJECT FINDING
• Small players/New players have also shown their interest to avail these services.
•
For many companies, demat account is either an unknown term or not wants to give time to survey/research people from their busy schedule.
• Cost of availing these services can be barrier for the companies. They don’t know how much they have to spend to avail these services.
•
Companies even don’t know much about the players who provide these kinds of services.
• It is a need of the hour because the dynamics of the Industry are changing.
•
Many companies are interested in this service but they don’t know about the process of the demat account
RESULTS AS PER THE SURVEY
Total Visit Total Converted Area of Survey Period of Study Studied on Behalf Of
: : : : :
80 Customers 25 Customers Jodhpur, Jaipur, Pali etc 1st June 2008 to 31st July 2008
ARCADIA SHARE & STOCK BROKERS PVT. LTD. MUMBAI
CHPTER – VI
BIBLIOGRAPHY
1. www.arcadia.com
2. www.nse.com 3. www.bse.com
4. Company Manuals 5. My Special thanks to Google.com 6. Company Annual Report
PROJECT SUBMITTED TO ANNAMALAI UNIVERSITY, IN PARTIAL FULFILMENT OF THE REQUIREMENTS
FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION IN APPLIED MANAGEMENT
By
Dinesh Soni
Enrolment Number : 4740700464 Under the guidance of Mr. Sunil Asopa Branch Manager Arcadia Shares & Stock Brokers Ltd. Maan Ji Ka Hatha, Paota, Jodhpur
DIRECTORATE OF DISTANCE EDUCATION
ANNAMALAI NAGAR 2009
“DEMAT ACCOUNT OPENING”
PROJECT SUBMITTED TO ANNAMALAI UNIVERSITY, IN PARTIAL FULFILMENT OF THE REQUIREMENTS
FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION IN APPLIED MANAGEMENT
By
Dinesh Soni
Enrolment Number : 4740700464 Under the guidance of Mr. Sunil Asopa Branch Manager Arcadia Shares & Stock Brokers Ltd. Maan Ji Ka Hatha, Paota, Jodhpur
DIRECTORATE OF DISTANCE EDUCATION
ANNAMALAI NAGAR 2009
DECLARATION
I hereby declare that the project entitled “DEMAT ACCOUNT OPENING” submitted for the Degree of Master of Business Administration in Applied Management is my original work and the project has not formed the basis for the award of any degree, diploma, associate ship, fellowship or similar other titles. It has not been submitted to any other university or Institution for the award of any degree or diploma.
Place: Jodhpur Date: 05/03/09
Name: Dinesh Soni Enrolment No.: 4740700464
ACKNOWLEDGEMENT
It is with real pleasure that, I record my indebtedness to my project Guide, Mr. Sunil Aasopa for his counsel and guidance during the preparation of this project. I am grateful to Centre Head Mr. Praveen Mehta for providing me an opportunity to prepare this report. I wish to record my sincere and special thanks to Mr.Amit Sharma, Mr.Ashish My thanks are due to Mr.Sunil Aasopa, Mr. Hemendra to give me great and valuable support.
Place: Jodhpur Date: 05/03/09
Name: Dinesh Soni Enrolment No: 4740700464
TABLE OF CONTENTS
CHAPTER – I EXECUTIVE SUMMERY CHAPTER – II COMPANY PROFILE
INTRODUCATION ORGANISTION STRUCTURE
INFRA-STRUCTURE SETUP PRODUCT & SERVICES
CHPTER – III DEMAT ACCOUNT
INTRODUCATION OF DEMAT ACCOUNT DEMAT ACCOUNT PROCESS REQUERMENT OF DOCUMENTS BENEFITS OF DEMAT ACCOUNT
CHPTER – IV RESEARCH METHODOLOGY
OBJECTIVES & SCOPE OF STUDY DATA ANALYSIS
SOURCE OF DATA
CHPTER – V FINDING & ANALYSIS
PROJECT FINDING RESEARCH & ANALYSIS
CHPTER – VI BIBLIOGRAPHY
CHAPTER – I
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
An organization is made up of competencies, which we can loosely call 'capital'. Its key components are 'customer capital', 'structural capital' and 'human capital'. Broadly a company's strength arises out of its customer base, which purchases its products. The project has broadly been carried in around Jodhpur and Other areas. In the initial phase I visited a large number of domestic and Multinational companies in Jodhpur area have and gathered information as far as possible for the benefit of the project at large. After conducting the study within some constraints, my findings were as far As transparent but chances of error are possible as the saying “To err is Human “ In this short report you will find the description of Demat Account Opening, the process followed and the basic requirements for the process. As the report progress towards conclusion it gives fair idea about the needs of this service, prospects, competitors and reason for all with some facts and figures and supporting articles
CHAPTER – II
COMPANY PROFILE
INTRODUCATION
ORGANISTION STRUCTURE INFRASTRUCTURE SETUP PRODUCT & SERVICES
INTRODUCATION
Arcadia came to life in 1995, right on the wave of a post-liberalisation market economy. As financial services became a major contributor to economic growth, Arcadia has steadily shaped into a leading financial service provider.
In 1995, we were a small company with just 5 employees. Today, we have a market presence across the country, with over 275 branches & franchaisee outlets. We have established a strong retail network not only in metros but also in tier two and tier three cities. Traditionally, our operation was concentrated in fast-moving capital market of Western India. But sensing great potential, we have launched strong expansion plans in the North and the South.
ORGANISATION STRUCTURE
Mr. Antony Sequeira (Founder, Managing Director) The chief promoter of Arcadia has been associated with capital markets for over 26 years. Mr. Sequeira has a rich 19 years of banking experience with Corporation Bank & Syndicate Bank. For six years he was the Chief Executive of M/S Uday S. Kotak, now known as Kotak Securities. Mr. Sequeira is respected in the organization for being a complete taskmaster. His thrust for client satisfaction is an energizing force within the organization. He is completely committed towards making Arcadia a one-stop financial service provider. Mr. Nitin Brahmbhatt (Director) The director is an arbitrage consultant by profession, with 25 years experience in the capital market. Between 1985 and 1995, he played the role of a leading market maker in the Bombay Stock Exchange. He has a rich experience in the field of arbitrage. The credit for building the arbitrage team for Arcadia goes to him. It is his innovative ideas that have made Arcadia a leading arbitrage player in the country. Under his leadership, Arcadia has created a mammoth network of branches & franchisees.
INFRA-STRUCTURE SETUP
Wide branch network of 275+ branches (Covering A, B, C cities &
Remote Locations).
Well Educated and highly trained “Feet on Street” to undertake Individual Personal Contact.
Rapid expansion as per user location and user requirements.
Working symbiotically without disturbing clients set up
PRODUCT & SERVICES
Since Arcadia is a service based company therefore the product are of nothing but the service. Provide pre and post disbursement/activation turnkey solutions so as to bridge information the gap between the principals and their prospective/existing customers. This systematic presence-building and efficient delivery of service has put Arcadia among the fastest growing retail broking houses in the country, with memberships in:
(1)
NATIONAL STOCK EXCHANGE OF INDIA (NSE) The National Stock Exchange of India Limited (NSE) is a Mumbai-
based stock exchange. It is the largest stock exchange in India in terms of daily turnover and number of trades, for both equities and derivative trading. Though a number of other exchanges exist, NSE and the Bombay Stock Exchange are the two most significant stock exchanges in India, and between them are responsible for the vast majority of share transactions. The NSE's key index is the S&P CNX Nifty, known as the Nifty, an index of fifty major stocks weighted by market capitalization.
(2)
BOMBAY STOCK EXCHANGE (BSE) The Bombay Stock Exchange Limited (BSE) (formerly, The Stock
Exchange, Mumbai; popularly called The Bombay Stock Exchange, or BSE) is the oldest stock exchange in Asia and has the greatest number of listed companies in world, with 4700 listed as of August 2007. It is located at Dalal Street, Mumbai, India. On 31 December 2007, the equity market capitalization of the companies listed on the BSE was US$ 1.79 trillion, making it the largest stock exchange in South Asia and the tenth largest in the world.
(3)
MULTI COMMODITY EXCHANGE (MCX) Multi Commodity Exchange (MCX) is an independent commodity
exchange based in India. It was established in 2003 and is based in Mumbai. It has an average daily turnover of around US$ 1.55 billion [citation needed]. MCX offers futures trading in Agricultural Commodities, Bullion, Ferrous & Nonferrous metals, Pulses, Oils & Oilseeds, Energy, Plantations, Spices and other soft commodities. MCX has also setup in joint venture the National Spot Exchange a purely agricultural commodity exchange and National Bulk Handling Corporation (NBHC) which provides bulk storage and handling of agricultural products.
(4) NATIONAL COMMODITY & DERIVATIVES EXCHANGE(NCDX)
National Commodity & Derivatives Exchange Limited (NCDEX) is an online commodity exchange based in India. It was incorporated as a private limited company incorporated on April 23, 2003 under the Companies Act, 1956. It obtained its Certificate for Commencement of Business on May 9, 2003. It has commenced its operations on December 15, 2003. NCDEX is a closely held private company which is promoted by national level institutions and has an independent Board of Directors and professionals not having vested interest in commodity markets.
(5)
DEPOSITORY PARTICIPANT OF CDSL In India, a Depository Participant (DP) is described as an agent of the
depository. They are the intermediaries between the depository and the investors. The relationship between the DPs and the depository is governed by an agreement made between the two under the Depositories Act. In a strictly legal sense, a DP is an entity who is registered as such with SEBI under the provisions of the SEBI Act. As per the provisions of this Act, a DP can offer depositoryrelated services only after obtaining a certificate of registration from SEBI.
(6)
ASSOCIATION OF MUTUAL FUNDS IN INDIA (AMFI) A Mutual Fund is a trust that pools the savings of a number of investors
who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realized are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund:
CHAPTER – III
DEMAT ACCOUNT INTRODUCATION OF DEMAT ACOUNT DEMAT ACCOUNT PROCESS REQUREMENT OF DOCUMENTS BENEFITS OF DEMAT ACCOUNT
•
•
•
INTORDUCATION OF DEMAT ACCOUNT
In India, a demat account, the abbreviation for dematerialized account, is a type of banking account which dematerializes paper-based physical stock shares. The dematerialized account is used to avoid holding physical shares: the shares are bought and sold through a stock broker. This account is popular in India. The Securities and Exchange Board of India (SEBI) mandates a demat account for share trading above 500 shares. As of April 2006, it became mandatory that any person holding a demat account should possess a Permanent Account Number (PAN), and the deadline for submission of PAN details to the depository lapsed on January 2007.
•
DEMAT ACCOUNT PROCESS
1 2. 3. 4. Fill demats request form (DRF) (obtained from a depository participant or DP with whom your depository account is opened). Deface the share certificate(s) you want to dematerialize by writing across Surrendered for dematerialization. Submit the DRF & share certificate(s) to DP. DP would forward them to the issuer / their R&T Agent. After dematerialization, your depository account with your DP would be credited with the dematerialized securities.
•
REQUREMENT OF DOCUMENTS
The extent of documentation required to open a demat account may vary
according to your relationship with the institution. If you plan to open a demat account with a bank, a savings, current and, or other account for which the holder have been issued a check book, such holder has an edge over the non-account holder. In fact, banks usually offer additional incentives to customers who open a demat account with them. Along with the application form, your photographs (with co-applicants) and proof of identity/residence/date of birth have to be submitted. The DPs also ask for a DP-client agreement to be executed on nonjudicial stamp paper. Here is a broad list: - A canceled check, preferably MICR - Proof of Identification - Proof of Address - Proof of Pan card (mandatory) - Recent photographs, one and, or more For proof of identification and, or address self-attested facsimile copies of PAN card, Voter’s ID, Passport, Ration card, Driver’s license, Photo credit card, Employee ID card, Bank attestation, latest IT returns and, or latest Electricity/Landline phone bill are sufficient. While they only ask for photocopies of the documents, they will need the originals for verification.
•
BENEFITS OF DEMAT ACCOUNT
- A safe and convenient way to hold securities; - Immediate transfer of securities; - No stamp duty on transfer of securities; - Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc.; - Reduction in paperwork involved in transfer of securities; - Reduction in transaction cost; - No odd lot problem, even one share can be sold; - Nomination facility; - Change in address recorded with DP gets registered with all companies in which investor holds securities electronically eliminating the need to correspond with each of them separately; - Transmission of securities is done by DP eliminating correspondence with companies; - Automatic credit into demat account of shares, arising out bonus/split/consolidation/merger etc. - Holding investments in equity and debt instruments in a single account.
CHAPTER – IV
RESEARCH METHODOLOGY
OBJECTIVES OF STUDY
DATA ANALYSIS SOURCE OF DATA
OBJECTIVES OF THE STUDY
• Spread awareness about this process. • Find out the companies which like to adopt this technique. • Find out the factors which influence the companies.
• •
What the companies are looking from Demat Account? Gap Analysis between Prospective Customers and Broker Agencies
DATA ANALYSIS
This part of the chapter consists of research work which work which has been undertaken by the researcher before discussing in detail let us have the clear view of some basic concept, Marketing, Marketing Research, Meaning of Survey & its Methods, Meaning of Feedback how it is important There are two types of Research Method. 1) Survey Method 2) Experimental Method
Survey Method
The Survey method is complex operations which require some technical knowledge. Usually three general methods are used for conducting this survey method they are as follows,
(i) (ii) (iii)
Interview/Questionnaire Mail Survey Telephonic Survey
Here in this research work survey method has been widely executed the three phase of this survey method i.e., personal interview/questionnaire, mail survey, telephonic survey.
Experimental Method
This method is more related to the production aspects of an organization. The quality of the ultimate result of continuous research and experiments.
SOURCE OF DATA
Data’s are the useful information or any forms of document designed in a systematic and standardize manner which are used for some further proceedings. One of the important tools for conducting marketing research is the availability of necessary and useful data. Some time the data are available readily in one form or the other and some time the data are collected afresh. The sources of information fall under two categories, Internal Sources and External Sources.
In this particular project the major sources were as follows: Competitive Study Corporate Presentation Objections and their Possible Solutions Association with National and International Clients/Partner While providing customized solutions we learn more
There are two type of source used in project. A. Internal Sources A business organization has definitely to keep certain records such as financial accounting records, sales records, and other information relating to the business process, these records provides ample information, good use can be made by the various information which are organization usually keeps for its own purposes in the future.
B.
External Sources When the information or any forms of document are collected from outside the organization, it basically happens when the internal records are insufficient and the required information is not readily available, the organization will have to depend on the external sources. Here in this case the external sources are internet,
magazine, paper cutting etc. In external sources the research has been broadly divided in to two categories.
CHAPTER – V
FINDING & ANALYSIS
PROJECT FINDING RESULT OF SURVEY
PROJECT FINDING
• Small players/New players have also shown their interest to avail these services.
•
For many companies, demat account is either an unknown term or not wants to give time to survey/research people from their busy schedule.
• Cost of availing these services can be barrier for the companies. They don’t know how much they have to spend to avail these services.
•
Companies even don’t know much about the players who provide these kinds of services.
• It is a need of the hour because the dynamics of the Industry are changing.
•
Many companies are interested in this service but they don’t know about the process of the demat account
RESULTS AS PER THE SURVEY
Total Visit Total Converted Area of Survey Period of Study Studied on Behalf Of
: : : : :
80 Customers 25 Customers Jodhpur, Jaipur, Pali etc 1st June 2008 to 31st July 2008
ARCADIA SHARE & STOCK BROKERS PVT. LTD. MUMBAI
CHPTER – VI
BIBLIOGRAPHY
1. www.arcadia.com
2. www.nse.com 3. www.bse.com
4. Company Manuals 5. My Special thanks to Google.com 6. Company Annual Report
