A

CASE STUDY ON

HDFC DEMATE ACCOUNT

COMPARISION WITH ICICI DEMATE ACCOUNT

MASTER OF BUSINESS ADMINSTRATION

II – SEM.

JAIPUR INSTITUTE OF MANEGEMENT STUDIES,

JAIPUR

SABMITTED TO : Dr. R K Sharma

SABMITTED BY : Dipak K Prajapati

MARCH - 2010

PREFACE

As management attitude are becoming more rewarding it helps up

to acquire. The students with modern management concept it helps us in

developing entrepreneur and analytical skills as applied to business

environment and that prepare us for pressuring a professional career.

The main objectives of MBA level is to gain practical analysis

which is vast different from the bookish knowledge, it helps to develop a

practical knowledge in student, as a supplement to the theoretical study of

management general. The case study at MBA level aims at given knowledge

about particular area in the business.

Case study gave me a practical view of how actually runs and have

it is managed. This case study has enhanced my knowledge allow the

company. Case study helps me to exposure and 10% of realities which is

totally different than what it helped me to know the reality as what actual

happens in company.

The main aim of this case study is to develop the student about

the industrial environment and business practical with the help of me get

capable of facing the challenging world

Date -

Place - Dipak Prajapat

ACKNOWLEDGEMENT

A case study is not only of our subject but is the golden

opportunity for our knowledge enhancement with the great pleasure; here I

take the opportunity to express my gratitude towards all who helped me at

various stage of my practical part.

At once, I would like to place on record my thanks to the

management of our college for their kind co-operative in providing the

required data.

In a special way, I would like to place on record my practical

case study Incharge Prof.D.N.Sharma, Principal Sir – Mr. R.K.Sharma

and Lokesh Arora Madam , who though out my visit and in preparing the

case study and internet facilities.

Lastly, I would like to thanks management and officers and

staff of different department, who spend their precious of units and provided

insight. I would like to acknowledge to valuable help offered to the person.

Introduction about demate account

The term Demat, in India, refers to a dematerialized account. For

individual Indian citizens to trade in listed stocks or debentures the

Securities Exchange Board of India (SEBI) requires the investor to maintain

a Demat account. In a demat account shares and securities are held in

electronic form instead of taking actual possession of certificates. A Demat

Account is opened by the investor while registering with an investment

broker (or sub broker). The Demat account number which is quoted for all

transactions to enable electronic settlements of trades to take place.

Access to the demat account requires an internet password and a

transaction password as well as initiating and confirming transfers or

purchases of securities. Purchases and sales of securities on the Demat

account are automatically made once transactions are executed and

completed.

Just as you have to open an account with a bank if you want to save

your money, make cheque payments etc, Nowadays, you need to open a

demat account if you want to So it is just like a bank account where actual

money is replaced by shares. You have to approach the DPs (remember, they

are like bank branches), to open your demat account. Let's say your portfolio

of shares looks like this: 150 of Infosys, 50 of Wipro, 200 of HLL and 100

of ACC. All these will show in your demat account. So you don't have to

possess any physical certificates showing that you own these shares. They

are all held electronically in your account. As you buy and sell the shares,

they are adjusted in your account. Just like a bank passbook or statement, the

DP will provide you with periodic statements of holdings and transactions.

Is a demat account a must ? Nowadays, practically all trades have to

be settled in dematerialized form. Although the market regulator, the

Securities and Exchange Board of India (SEBI), has allowed trades of upto

500 shares to be settled in physical form, nobody wants physical shares any

more.

Advantages of Demat

1. The demat account reduces brokerage charges, makes

pledging/hypothecation of shares easier, enables quick ownership of

securities on settlement resulting in increased liquidity, avoids

confusion in the ownership title of securities, and provides easy

receipt of public issue allotments.

2. It also helps you avoid bad deliveries caused by signature mismatch,

postal delays and loss of certificates in transit.

3. Further, it eliminates risks associated with forgery, counterfeiting and

loss due to fire, theft or mutilation.

4. Demat account holders can also avoid stamp duty (as against 0.5 per

cent payable on physical shares), avoid filling up of transfer deeds,

and obtain quick receipt of such benefits as stock splits and bonuses.

5. Its a safe and convenient way to hold securities

6. Immediate transfer of securities is there

7. There is no stamp duty on transfer of securities

8. Elimination of risks associated with physical certificates such as bad

delivery, fake securities, delays, thefts etc

9. There is a major reduction in paperwork involved in transfer of

securities, reduction in transaction cost etc

10.No odd lot problem, even one share can be sold thus there is an

advantage

11.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;

12.Transmission of securities is done by DP eliminating correspondence

with companies;

13.Automatic credit into demat account of shares, arising out of

bonus/split/consolidation/merger etc.

14. Holding investments in equity and debt instruments in a single

account.

Benefit to the Company

a. The depository system helps in reducing the cost of new issues due to

less printing and distribution cost.

b. It increases the efficiency of the registrars and transfer agents and the

Secretarial Department of the company.

c. It provides better facilities for communication and timely services

with shareholders, investor etc.

d. Benefit to the Investor The depository system reduces risks involved

in holding physical certificated, e.g., loss, theft, mutilation, forgery,

etc.

e. It ensures transfer settlements and reduces delay in registration of

shares. It ensures faster communication to investors.

f. It helps avoid bad delivery problem due to signature differences, etc.

g. It ensures faster payment on sale of shares.

h. No stamp duty is paid on transfer of shares. It provides more

acceptability and liquidity of securities.

i. Benefit to Brokers the depository system reduces risk of delayed

settlement.

j. It ensures greater profit due to increase in volume of trading. It

eliminates chances of forgery – bad delivery.

k. It increases overall of trading and profitability. It increases confidence

in investors.

Disadvantages of Demat

1. The disadvantages of dematerialization of securities can be

summarized as follows:

2. Trading in securities may become uncontrolled in case of

dematerialized securities.

3. It is incumbent upon the capital market regulator to keep a close

watch on the trading in dematerialized securities and see to it that

trading does not act as a detriment to investors.

4. The role of key market players in case of dematerialized securities,

such as stock-brokers, needs to be supervised as they have the

capability of manipulating the market.

5. Multiple regulatory frameworks have to be confirmed to, including

the Depositories Act, Regulations and the various By-Laws of various

depositories.

6. Additionally, agreements are entered at various levels in the process

of dematerialization.

7. These may cause anxiety to the investor desirous of simplicity in

terms of transactions in dematerialized securities.

8. However, the advantages of dematerialization outweigh its

disadvantages and the changes ushered in by SEBI and the Central

Government in terms of compulsory dematerialization of securities is

important for developing the securities market to a degree of

advancement.

9. Freely traded securities are an essential component of such an

advanced market and dematerialization addresses such issues and is a

step towards the advancement of the marke

Indian Market Scenario

Indian capital market has seen unprecedented boom in its activity in

the last 15 years in terms of number of stock exchanges, listed companies,

trade volumes, market intermediaries, investor population, etc. However,

this surge in activity has brought with it numerous problems that threaten the

very survival of the capital markets in the long run, most of which are due to

the large volume of paper work involved and paper based trading, clearing

and settlement.

Until the late eighties, the common man kept away from capital

market and thus the quantum of funds mobilized through the market was

meager. A major problem, however, continued to plague the market. The

Indian markets were drowned in shares in the form of paper and hence it was

problematic to handle them. Fake and stolen shares, fake signatures and

signature mismatch, duplication and mutilation of shares, transfer problems,

etc. The investors were scared and were under compensated for the risk

borne by them. The century old system of trading and settlement requires

handling of huge volumes of paper work. This has made the investors, both

retail and institutional, wary of entering the capital market. However, lack of

modernization become a hindrance to growth and resulted in creation of

cumbersome procedures and paper work.

However, the real growth and change occurred from mid-eighties in

the wake of liberalization initiatives of the Government. The reforms in the

financial sector were envisaged in the banking sector, capital market,

securities market regulation, mutual funds, foreign investments and

Government control. These institutions and stock exchanges experienced

that the certificates are the main cause of investors` disputes and arbitration

cases. Since the paper work was not matching the rapid growth so there was

a need for a better system to ensure removal of these impediments.

Government of India decided to set up a fully automated and high

technology based model exchange that could offer screen-based trading and

depositories as the ultimate answer to all such reforms and eliminate various

bottlenecks in the capital market, particularly, the clearing and settlement

system in stock exchanges. A depository in very simple terms is a pool of

pre-verified shares held in electronic mode which offers settlement of

transactions in an efficient and effective way

Demat conversion

Converting physical holding into electronic holding (dematerialising

securities) In order to dematerialise physical securities one has to fill in a

DRF (Demat Request Form) which is available with the DP and submit the

same along with physical certificates one wishes to dematerialise. Separate

DRF has to be filled for each ISIN Number. The complete process of

dematerialisation is outlined below:

1. Surrender certificates for dematerialization to your depository

participant.

2. Depository participant intimates Depository of the request through the

system. •Depository participant submits the certificates to the registrar

of the Issuer Company. •Registrar confirms the dematerialisation

request from depository

3. After dematerializing the certificates, Registrar updates accounts and

informs depository of the completion of dematerialisation.

4. Depository updates its accounts and informs the depository

participant.

5. Depository participant updates the demat account of the investor.

Demat Options

Banks score over others Around 200 “depository participants” (DPs)

offer the demat account facility.

A comparison of the fees charged by different DPs is detailed below.

But there are three distinct advantages of having a demat account with

a bank — quick processing, accessibility and online transaction.

Generally, banks credit your demat account with shares in case of

purchase, or credit your savings accounts with the proceeds of a sale on the

third day.

Banks are also advantageous because of the number of branches they

have. Some banks give the option of opening a demat account in any branch,

while others restrict themselves to a select set of branches.

Some private banks also provide online access to the demat account.

So, you can check on your holdings, transactions and status of

requests through the net banking facility.

A broker who acts as a DP may not be able to provide these services.

Fees Involved in demate account

There are four major charges usually levied on a demat account:

Account opening fee, annual maintenance fee, custodian fee and transaction

fee. All the charges vary from DP to DP.

Account-opening fee

Depending on the DP, there may or may not be an opening account

fee. Private banks, such as ICICI Bank, HDFC Bank and UTI Bank, do not

have one. However, players such as Karvy Consultants and the State Bank

of India do so. But most players levy this when you re-open a demat

account, though the Stock Holding Corporation offers a lifetime account

opening fee, which allows you to hold on to your demat account over a long

period. This fee is refundable.

Annual maintenance fee

This is also known as folio maintenance charges, and is generally

levied in advance.

Custodian fee

This fee is charged monthly and depends on the number of securities

(international securities identification numbers — ISIN) held in the account.

It generally ranges between Rs 0.5 to Rs 1 per ISIN per month. DPs will not

charge custody fee for ISIN on which the companies have paid one-time

custody charges to the depository.

Transaction fee

The transaction fee is charged for crediting/debiting securities to and

from the account on a monthly basis. While some DPs, such as SBI, charge

a flat fee per transaction, HDFC Bank and ICICI Bank peg the fee to the

transaction value, subject to a minimum amount. The fee also differs based

on the kind of transaction (buying or selling). Some DPs charge only for

debiting the securities while others charge for both. The DPs also charge if

your instruction to buy/sell fails or is rejected. In addition, service tax is also

charged by the DPs.

In addition to the other fees, the DP also charges a fee for converting

the shares from the physical to the electronic form or vice-versa. This fee

varies for both demat and remat requests. For demat, some DPs charge a flat

fee per request in addition to the variable fee per certificate, while others

charge only the variable fee.

For instance, Stock Holding Corporation charges Rs 25 as the request

fee and Rs 3 per certificate as the variable fee. However, SBI charges only

the variable fee, which is Rs 3 per certificate. Remat requests also have

charges akin to that of demat. However, variable charges for remat are

generally higher than demat. Some of the additional features (usually offered

by banks) are as follows.Some DPs offer a frequent trader account, where

they charge frequent traders at lower rates than the standard charges.Demat

account holders are generally required to pay the DP an advance fee for each

account which will be adjusted against the various service charges. The

account holder needs to raise the balance when it falls below a certain

amount prescribed by the DP. However, if you also hold a savings account

with the DP you can provide a debit authorisation to the DP for paying this

charge.Finally, once you choose your DP, it will be prudent to keep all your

accounts with that DP, so that tracking your capital gains liability is easier.

This is because, for calculating capital gains tax, the period of holding will

be determined by the DP and different DPs follow different methods. For

instance, ICICI Bank uses the first in first out (FIFO) method to compute the

period of holding. The proof of the cost of acquisition will be the contract

note. The computation of capital gains is done account-wise.

Opening an account

Steps involved in opening a demat account First an investor has to

approach a DP and fill up an account opening form.

The account opening form must be supported by copies of any one of

the approved documents to serve as proof of identity (POI) and proof

of address (POA) as specified by SEBI.

Besides, production of PAN card in original at the time of opening of

account has been made mandatory effective from April 1, 2006.

All applicants should carry original documents for verification by an

authorized official of the depository participant, under his signature.

Further, the investor has to sign an agreement with DP in a depository

prescribed standard format, which details rights and duties of investor

and DP.

DP should provide the investor with a copy of the agreement and

schedule of charges for their future reference.

The DP will open the account in the system and give an account

number, which is also called BO ID (Beneficiary Owner Identification

number).

The DP may revise the charges by giving 30 days notice in advance.

SEBI has rationalised the cost structure for dematerialisation by

removing account opening charges, transaction charges for credit of

securities, and custody charges vide circular dated January 28, 2005.

Further, SEBI has vide circular dated November 9, 2005 advised that

with effect from January 9, 2006, no charges shall be levied by a

depository on DP and consequently, by a DP on a Beneficiary Owner

(BO) when a BO transfers all the securities lying in his account to

another branch of the same DP or to another DP of the same

depository or another depository, provided the BO Account/s at

transferee DP and at transferor DP are one and the same, i.e. identical

in all respects.

In case the BO Account at transferor DP is a joint account, the BO

Account at transferee DP should also be a joint account in the same

sequence of ownership.

Transfer of Shares between DPs

To transfer shares, we need to fill the Depository Instruction Slip Book

(DIS). Firstly we need to check, whether both Demat account's Depository

Participant is same or not(CDSL or NSDL) If both of them are different,

then we need an INTER Depository Slip (Inter DIS). If they are same, then

we need INTRA Depository Slip (Intra DIS).

For example: If we have one Demat account with CDSL and other Demat

account with NSDL, then we need an Inter DIS.

Generally, brokers issue Intra DIS, so do check with broker.

Once we identify the correct DIS, fill the relevant information

WHAT IS NSDL?

NSDL(NATIONAL STOCK DEPOSITORY LIMITED) Although India

had a vibrant capital market which is more than a century old, the paper-

based settlement of trades caused substantial problems like bad delivery and

delayed transfer of title till recently. The enactment of Depositories Act in

August 1996 paved the way for establishment of NSDL, the first depository

in India. This depository promoted by institutions of national stature

responsible for economic development of the country has since established

a national infrastructure of international standards that handles most of the

securities held and settled in dematerialized form in the Indian capital

market.

Using innovative and flexible technology systems, NSDL works to support

the investors and brokers in the capital market of the country. NSDL aims at

ensuring the safety and soundness of Indian marketplaces by developing

settlement solutions that increase efficiency, minimize risk and reduce costs.

At NSDL, we play a quiet but central role in developing products and

services that will continue to nurture the growing needs of the financial

services industry.

In the depository system, securities are held in depository accounts, which is

more or less similar to holding funds in bank accounts. Transfer of

ownership of securities is done through simple account transfers. This

method does away with all the risks and hassles normally associated with

paperwork. Consequently, the cost of transacting in a depository

environment is considerably lower as compared to transacting in

certificates.

Benefits of Depository System

1. Elimination of bad deliveries In the depository environment, once

holdings of an investor are dematerialized, the question of bad delivery

does not arise i.e. they cannot be held "under objection". In the physical

environment, buyer was required to take the risk of transfer and face

uncertainty of the quality of assets purchased. In a depository

environment good money certainly begets good quality of assets.

2. Elimination of all risks associated with physical certificates- Dealing

in physical securities have associated security risks of theft of stocks,

mutilation of certificates, loss of certificates during movements through

and from the registrars, thus exposing the investor to the cost of

obtaining duplicate certificates etc. This problem does not arise in the

depository environment.

3. No stamp duty for transfer of any kind of securities in the depository.

This waiver extends to equity shares, debt instruments and units of

mutual funds.

4. Immediate transfer and registration of securities - In the depository

environment, once the securities are credited to the investors account on

pay out, he becomes the legal owner of the securities. There is no

further need to send it to the company's registrar for registration.

Having purchased securities in the physical environment, the investor

has to send it to the company's registrar so that the change of ownership

can be registered. This process usually takes around three to four

months and is rarely completed within the statutory framework of two

months thus exposing the investor to opportunity cost of delay in

transfer and to risk of loss in transit. To overcome this, the normally

accepted practice is to hold the securities in street names i.e. not to

register the change of ownership. However, if the investors miss a book

closure the securities are not good for delivery and the investor would

also stand to loose his corporate entitlements.

5. Faster settlement cycle - The settlement cycle follow rolling

settlement on T+2 basis i.e. the settlement of trades will be on the 2nd

working day from the trade day. This will enable faster turnover of

stock and more liquidity with the investor.

6. Faster disbursement of non cash corporate benefits like rights,

bonus, etc. - NSDL provides for direct credit of non cash corporate

entitlements to an investors account, thereby ensuring faster

disbursement and avoiding risk of loss of certificates in transit.

7. Reduction in brokerage by many brokers for trading in

dematerialized securities Brokers provide this benefit to investors as

dealing in dematerialized securities reduces their back office cost of

handling paper and also eliminates the risk of being the introducing

broker.

8. Reduction in handling of huge volumes of paper

9. periodic status reports to investors on their holdings and transactions,

leading to better controls.

10. Elimination of problems related to change of address of investor -

In case of change of address, investors are saved from undergoing the

entire change procedure with each company or registrar. Investors have

to only inform their DP with all relevant documents and the required

changes are effected in the database of all the companies, where the

investor is a registered holder of securities.

11. Elimination of problems related to transmission of demat shares -

In case of dematerialized holdings, the process of transmission is more

convenient as the transmission formalities for all securities held in a

demat account can be completed by submitting documents to the DP

whereas, in case of physical securities the surviving joint holder(s)/legal

heirs/nominee has to correspond independently with each company in

which shares are held.

12. Elimination of problems related to selling securities on behalf of a

minor - A natural guardian is not required to take court approval for

selling demat securities on behalf of a minor.

13. Ease in portfolio monitoring since statement of account gives a

consolidated position of investments in all instruments.

SAFETY

1. A DP can be operational only after registration by SEBI, which is

based on the recommendation from NSDL and their own independent

evaluation. SEBI has prescribed criteria for becoming a DP in the

regulations.

2. DPs are allowed to affect any debit and credit to an account only on

the basis of valid instruction from the client.

3. Every day, there is a system driven mandatory reconciliation between

DP and NSDL.

4. All transactions are recorded at NSDL Central System and in the

databases maintained by business partners.

5. There are periodic inspections into the activities of both DP and R&T

agent by NSDL. This also includes records based on which the

debit/credit is affected.

6. All investors have a right to receive their statement of accounts

periodically from the DP.

7. Every month NSDL forwards statement of account to a random

sample of investors as a counter check.

8. In the depository, the depository holds the investor accounts on trust.

Therefore, if the DP goes bankrupt the creditors of the DP will have

no access to the holdings in the name of the clients of the DP. These

investors can transfer their holdings to an account held with another

DP.

9. The data interchange between NSDL and its business partners is

protected by protection measures of international standards such as

encryption hardware lock. The protection measures adopted by NSDL

are more than what is prescribed in the SEBI Regulations.

10.Freeze Facility: A depository account holder (beneficiary account)

may freeze securities lying in the account for as long as the account

holder wants it. By freezing the account, account holder can prevent

unexpected debits or credits or both, creeping into its account. The

following types of freeze facility available in the NSDL system may

be availed of by submitting freeze instruction to the DP in the

prescribed form.

a. Freeze for debits only

b. Freeze for debits as well as credits

c. Freeze a particular ISIN in the account

d. Freeze a specific number of securities held under an ISIN in an

account

11.Certification in Depository Operations: NSDL has introduced a

Certification Programmed in Depository Operations (popularly known

as NCFM certification), and it has been made compulsory for all DPs

to appoint a person qualified in this certification in each of its

branches. This way, NSDL wants to ensure that each branch of a DP

that services investors has at least one person who has thorough

knowledge about depository system.

12.Investor grievance: All grievances of the investors are to be resolved

by the concerned business partner. If they fail to do so, the investor

has the right to approach NSDL at the following the investor

relationship cell of NSDL would work towards resolution of the

grievance.

13.Insurance Cover: NSDL has taken a comprehensive insurance policy

to help DP to indemnifying investors for the loss accrued to them due

to errors, omissions, commission or negligence of DP.

14.Computer and communication infrastructure: NSDL and its

business partners use hardware, software and communication systems,

which conform to industry standards. Further, the systems are

accepted by NSDL only after a rigorous testing procedure. NSDL's

central system comprises an IBM mainframe system with a back-up

facility and a remote disaster back-up site.

15.Machine level back-up: The IBM mainframe in which the data is

processed has adequate redundancy built into its configuration. There

is a standby central processing unit (CPU) to which processing can be

switched over to in case of main system CPU failure. The disk has

RAID implementation, which ensures that a failure of hard disk will

not lead to loss in data. System has spare disk configuration where

data is automatically copied from the main disk upon encountering the

first failure (due to RAID implementation - first failure does not result

in loss of data).

All network components like router, communication controllers etc.,

have on-line redundancy and thus a failure does not result in loss of

transaction.

Disaster back up site: A disaster back up site equipped with a

computer identical to the mainframe computer & computing resources

has been set up at a distant location about 175 km away from

Mumbai. The depository operations are often switched between the

computing resources at Mumbai office and disaster back up site to

ensure that the disaster site is always-operational.

16.Back-up in case of power failure: Continuity in power supply to the

main systems is assured by providing for;

i. Dual uninterrupted power supply (UPS) for IBM-

Mainframe and related components wherein the two

UPSs are connected in tandem. In case of failure of

primary UPS, the secondary UPS takes over

instantaneously and thus, there is no interruption in

operation, and

ii. Back-up diesel generator sets.

Settlement fee:

i. A settlement fee at the rate of Rs. 5 per debit instruction in a Client's

account shall be charged to the Participant of the Client.

ii. A settlement fee at the rate of Re.1.00 per instruction in respect of

securities received from the Clearing Corporation into the Pool

account of each Clearing Member maintained with the Participant

subject to a minimum of Rs. 1,000 and a maximum of Rs. 5,000 per

quarter per CM Account shall be charged to the Participant.

iii. A settlement fee at the rate of Rs.5 per debit instruction for transfer of

securities by way of inter-settlement transfers in the CM Account(s)

shall be charged to the Participant.

iv. A settlement fee at the rate of Rs.5 per debit instruction for transfer of

securities from the CM account of a Clearing Member to the CM

account of another Clearing Member shall be charged to the

Participant of the delivering Clearing Member.

Provided further that no settlement fee shall be charged :

a. in respect of commercial papers and short term debt instruments such

as certificate of deposits, MIBOR linked papers etc.; and

b. in case of :

i. transfers necessitated by transmission on death of the Client;

and

ii. transfer of the accounts of Clients from one Participant to

another as a consequence of expulsion or suspension of such

Participant.

Pledge fee

A fee at the rate of Rs.25 per instruction for creation of pledge /

hypothecation shall be charged to the Participant of the pledge/

hypothecator. No fee shall be charged when a pledge / hypothecation is

closed or invoked.

CUSTODY FEES

                    Nil

FEE FOR DEMATERIALISATION & REMATERIALISATION

No fee shall be charged by the depository for dematerialization of securities.

Participant shall be charged the following fee for dematerialization of

securities:

a. a fee of Rs.10 for every hundred securities or part thereof ; or

b. a flat fee of Rs.10 per certificate,

Whichever is higher.

No rematerialisation fee shall be charged for Government Securities.

MINIMUM FEE

In case the total fee billed to the Participants in a financial year is less than

the minimum fee of Rs.1,00,000 then the Participant shall be charged the

difference thereof.

SECURITY DEPOSIT

Every Participant shall pay to the Depository Rs.10 lakh by way of interest

free refundable security deposit. However, a Clearing Corporation or a

Clearing House of a Stock Exchange will be exempt from payment of

security deposit.

FEE PAYABLE BY ISSUERS

ANNUAL CUSTODY FEE

Nominal Value of Securities

admitted (Rs)

Amount (Rs.)

Up to 5 crore 6,000

Above 5 crore and up to 10 crore 15,000

Above 10 crore and up to 20 crore 30,000

Above 20 crore 50,000

i. With effect from April 1, 2009, an Issuer of listed securities shall pay

an annual custody fee at the rate of Rs. 8 per folio (ISIN position) in

NSDL, subject to a minimum amount as mentioned below, plus taxes

as applicable:

ii. The above fee would be applicable on all securities i.e. equity, debt,

Units of mutual funds, pass through certificates, certificates of

deposit, commercial papers, preference shares etc., except

Government securities.

iii. The fee will be based on the total ISIN positions (folios) as on March

31, of the previous financial year.

Provided however that, in case the issued capital or ISIN positions

increase during the financial year due to issue of further shares, by

way of public offer, the annual custody fee would be charged on a

pro-rata basis, at the time of such issue.

iv. The fee will be charged every year on a financial year basis and shall

be payable by April 30 of that financial year.

If an Issuer fails to pay the fees mentioned under "Annual Custody

Fee" by the due date, the Depository may charge interest @ 12% p.a.

on the amount, from the due date of payment till the payment is

received by the Depository. Provided further that the Depository may

stop providing details of clients / clearing members / clearing

corporation / intermediary to the Issuer and / or its Registrar and

Transfer Agent as mentioned in the Bye Laws and Business Rules.

Provided further that the Depository may not permit the Issuer to use

its infrastructure including for issue of further securities in electronic

form.

FEE FOR DISTRIBUTION OF NON-CASH CORPORATE

BENEFITS

i. In case of offers for sale by an offered or disinvestment by GOI,

bonus, rights, public issue, preferential issue, split, merger, demerger,

capital reduction, redemption, etc., a fee at the rate of Rs. 10 per

record for debits or credits to accounts as the case may be, shall be

charged to the Issuer, subject to a minimum fee of Rs.1000 per

corporate action.

ii. In case of issue of Commercial Papers, a fee of Rs.10,000/- (plus

taxes) shall be levied on the Issuer for five issues of Commercial

Papers during the financial year. Provided however that an additional

fee of Rs. 10,000/- (plus taxes) shall be levied on the Issuer for every

additional five issues.

iii. In case of issue of short term debt instruments viz; certificate of

deposits, MIBOR linked papers etc., a fee of Rs. 10,000/- (plus taxes)

shall be levied on the Issuer for five such issues made in a financial

year. Provided however an additional fee of Rs.10,000/- (plus taxes)

shall be levied on the Issuer for every additional five issues.

ONE TIME CUSTODY FEES

An Issuer may pay a one time custody fee to NSDL at the rate of 0.05% plus

taxes as applicable on the market capitalization of the company. The market

capitalization of a company will be determined on the basis of the average

market price for a period of 26 weeks preceding the date on which the

company agrees to make such payment. Consequent upon such payment,

NSDL shall not levy any custody fee on the Participants or annual custody

fee on the Issuer.

If a company opts to pay the aforesaid one time fee, it will also be required

to agree to pay on the newly issued shares, a custody fee at the rate of 0.05%

(five basis points) on the value of shares calculated on the basis of issue

price of newly issued shares. In case the company does not pay this amount,

NSDL shall charge annual custody fee or custody fee as per provision

mentioned hereunder, as the case may be. However, the Issuer shall not be

required to pay any one time custody fee on any subsequent issue of Bonus

shares by the company.

JOINING FEE BY ISSUERS

An Issuer of unlisted securities shall pay a joining fee of Rs. 20,000 plus

taxes at the applicable rate at the time of joining NSDL, for the purpose of

making its shares available for dematerialization.

Provided however that in case the Issuer gets its securities listed on any

recognized stock exchange within one year of joining NSDL, the joining fee

paid by the Issuer will get adjusted against the one time custody fee or

Annual Custody Fee, as the case may be.

If an issuer gets its securities delisted from all stock exchanges where its

securities were listed, it shall pay joining fee of Rs. 20,000 plus taxes at the

applicable rate. If an Issuer fails to pay the fees, the Depository may stop

providing details of clients/ clearing members/ clearing corporation/

intermediary to the Issuer and / or its Registrar and Transfer Agent as

mentioned in the Bye Laws and Business Rules. Provided further that the

Depository may not permit the Issuer to use its infrastructure including for

issue of further securities in electronic form.

WHAT IS CSDL?

CSDL(CENTRAL DEPOSITORY SERVICE (INDIA) LTD.) was set

up with the objective of providing convenient, dependable and secure

depository services at affordable cost to all market participants. Some of

the important milestones of CDSL system are:

CDSL received the certificate of commencement of business from SEBI

in February, 1999.

Honorable Union Finance Minister, Shri Yashwant Sinha flagged off

the operations of CDSL on July 15, 1999.

Settlement of trades in the demat mode through BOI Shareholding

Limited, the clearinghouse of BSE

All leading stock exchanges like the National Stock Exchange, Calcutta

Stock Exchange, Delhi Stock Exchange, The Stock

Exchange, Ahmedabad, etc have established connectivity with CDSL.

As at the end of Dec 2007, over 5000 issuers have admitted their

securities (equities, bonds, debentures, commercial papers)units of

mutual funds, certificate of deposits etc. into the CDSL system.

CDSL was promoted by Bombay Stock Exchange Limited

(BSE) in association with Bank of India, Bank of Baroda, State Bank of

India and HDFC Bank. BSE has been involved with this venture right from

the inception and has contributed overwhelmingly to the fruition of the

project. The initial capital of the

Company is Rs.104.50 crores. The list of shareholders with effect from 5th

April, 2010 is as under.

Sr.No Name of shareholder Value of

holding (in

Rupees Laces)

% terms to total

equiy

1 Bombay Stock Exchange

Limited

4,025.46 38.5

1

2 Bank of India 1,000.00 9.5

7

3 Bank of Baroda 1,000.00 9.5

7

4 State Bank of India 1,000.00 9.5

7

5 HDFC Bank limited 1,500.00 14.3

6

6 Standard Chartered Bank 750.00 7.1

8

7 Canara Bank 674.46 6.45

8 Union Bank of India 200.00 1.91

9 Bank of Maharashtra 200.00 1.91

10 The Calcutta Stock Exchange

Association Limited

100.00 0.96

11 Other 0.08 -

Total 10,450.0

0

100.00

BOARD OF DIRECTOR

Mr. S.S. Thahur Chairman

Mr.V.V. Raut Managing Director and Chief Exe. Officer

Mr. P.S.Reddy Executive Director

Mr. M.R.Mayya Independent Director

Mr. Madhu Kannan Sponsor Director–Bombay Stock Exchange Ltd.

Mr. Prakash R. Kacholia Sponsor Director-Bombay Stock Exchange Ltd.

Mr. Ashishk Chauhan Sponsor Director-Bombay Stock Exchange Ltd.

Mr. Anjan Barua Sponsor Director – State Bank of India.

Mr. A.D.M. Chavali Sponsor Director – Bank of Baroda

Mr. A.R.Kuppuswamy Sponsor Director – Bank of India

SECURITIES AVAILABLE FOR DEMATE

Securities available for demat

Equity 5,715

Debt instruments including debentures, bonds, Government

securities, certificates of deposits, commercial paper, pass

through certificates and Others

4582

Mutual fund units 1900

Depository Participants

Number of Depository Participants 500

Number of branches with LIVE Connectivity 265

Number of cities/ towns with LIVE connectivity 120

Number of locations with LIVE connectivity 278

Demat Custody

Number of securities in million 78,470

Value (Rs. in million) 84,40,100

Demat Settlement (April 2010)

Number of securities in million 699

Value (Rs. in million) 60,174

 

Investor accounts(Excluding closed accounts)

Corporate / Companies which issue any kind of security are

known as 'Issuer' in the depository system. Only those securities, which

are admitted into the CDSL system are available for dematerialization

to the holders of such securities or can be allotted in electronic record

form by the issuer. Securities include shares, debentures, bonds,

commercial paper (C.P.), and certificate of deposits (C.D.), pass

through certificates (PTCs), government securities and mutual fund

units. Both listed and unlisted securities can be admitted into the CDSL

system. CDSL functions as the central accounting and record keeping

office in respect of the securities admitted by issuer companies.

It is mandatory for all listed companies to have their securities

admitted for dematerialization with both the depositories viz CDSL &

NSDL. It is however desirable that all  securities are admitted on both

the depositories so that investors having account with any of the

depositories can acquire  that security.

Before the admission of any security into the CDSL system, it

is necessary for the issuer to establish an electronic connectivity with

CDSL either directly or through a registrar and transfer agent (RTA),

who has already established connectivity with CDSL. All leading RTAs

have already established electronic connectivity with CDSL. The

procedure and CDSL charges to obtain direct connectivity by an issuer

are similar to that as for a RTA. It may please be noted that SEBI, vide

its circular dated 27-12-2002, has advised issuers that "all the work

related to share registry in terms of both physical and electronic should

be maintained at a single point i.e either in-house by the company or by

a SEBI registered R & T Agent".

At CDSL, data is centrally stored with state-of-the-art systems

and having a 'Disaster Recovery Site' facility as back up. The

centralized database architecture of CDSL places it in a unique position

to provide issuers up-to-the-moment details of holdings of the security.

HDFC BANK

Housing Development Finance Corporation Limited, more popularly

known as HDFC Bank Ltd, was established in the year 1994, as a part of the

liberalization of the Indian Banking Industry by Reserve Bank of India

(RBI). It was one of the first banks to receive an 'in principle' approval from

RBI, for setting up a bank in the private sector. The bank was incorporated

with the name 'HDFC Bank Limited', with its registered office in Mumbai.

The following year, it started its operations as a Scheduled Commercial

Bank. Today, the bank boasts of as many as 1412 branches and over 3275

ATMs across India.

HDFC Bank Ltd. is a commercial bank of India, incorporated in August

1994, after the Reserve Bank of India allowed establishing private sector

banks. The Bank was promoted by the Housing Development Finance

Corporation, a premier housing finance company (set up in 1977) of India.

HDFC Bank has 1,412 branches and over 3,295 ATMs, in 528 cities in

India, and all branches of the bank are linked on an online real-time basis.

As of September 30, 2008 the bank had total assets of INR 1006.82 billion.

For the fiscal year 2008-09, the bank has reported net profit of Rs.2,244.9

crore, up 41% from the previous fiscal. Total annual earnings of the bank

increased by 58% reaching at Rs.19,622.8 crore in 2008-09

History

HDFC Bank was incorporated in the year of 1994 by Housing

Development Finance Corporation Limited (HDFC), India's premier housing

finance company. It was among the first companies to receive an 'in

principle' approval from the Reserve Bank of India (RBI) to set up a bank in

the private sector. The Bank commenced its operations as a Scheduled

Commercial Bank in January 1995 with the help of RBI's liberalization

policies.

In a milestone transaction in the Indian banking industry, Times Bank

Limited (promoted by Bennett, Coleman & Co. / Times Group) was merged

with HDFC Bank Ltd., in 2000. This was the first merger of two private

banks in India. As per the scheme of amalgamation approved by the

shareholders of both banks and the Reserve Bank of India, shareholders of

Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times

Bank.

In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its

total branches to more than 1,000. The amalgamated bank emerged with a

strong deposit base of around Rs. 1,22,000 crore and net advances of around

Rs. 89,000 crore. The balance sheet size of the combined entity is over Rs.

1,63,000 crore. The amalgamation added significant value to HDFC Bank in

terms of increased branch network, geographic reach, and customer base,

and a bigger pool of skilled manpower.

Business Focus

HDFC Bank deals with three key business segments - Wholesale

Banking Services, Retail Banking Services, Treasury. It has entered the

banking consortia of over 50 corporate for providing working capital

finance, trade services, corporate finance and merchant banking. It is also

providing sophisticated product structures in areas of foreign exchange and

derivatives, money markets and debt trading and equity research.

Wholesale Banking Services

The Bank's target market ranges from large, blue-chip manufacturing

companies in the Indian corp. to small & mid-sized corporate and agric-

based businesses. For these customers, the Bank provides a wide range of

commercial and transactional banking services, including working capital

finance, trade services, transactional services, cash management, etc. The

bank is also a leading provider of structured solutions, which combine cash

management services with vendor and distributor finance for facilitating

superior supply chain management for its corporate customers. HDFC Bank

has made significant inroads into the banking consortia of a number of

leading Indian corporate including multinationals, companies from the

domestic business houses and prime public sector companies. It is

recognized as a leading provider of cash management and transactional

banking solutions to corporate customers, mutual funds, stock exchange

members and banks.

Retail Banking Services

The objective of the Retail Bank is to provide its target market

customers a full range of financial products and banking services, giving the

customer a one-stop window for all his/her banking requirements. The

products are backed by world-class service and delivered to customers

through the growing branch network, as well as through alternative

delivery channels like ATMs, Phone Banking, Net Banking and

Mobile Banking.

HDFC Bank was the first bank in India to launch an International

Debit Card in association with VISA (VISA Electron) and issues the

MasterCard Maestro debit card as well. The Bank launched its credit card

business in late 2001. By March 2009, the bank had a total card base (debit

and credit cards) of over 13 million. The Bank is also one of the leading

players in the “merchant acquiring” business with over 70,000 Point-of-sale

(POS) terminals for debit / credit cards acceptance at merchant

establishments. The Bank is well positioned as a leader in various net based

B2C opportunities including a wide range of internet banking services for

Fixed Deposits, Loans, Bill Payments, etc.

Treasury

Within this business, the bank has three main product areas - Foreign

Exchange and Derivatives, Local Currency Money Market & Debt

Securities, and Equities. These services are provided through the bank's

Treasury team. To comply with statutory reserve requirements, the bank is

required to hold 25% of its deposits in government securities. The Treasury

business is responsible for managing the returns and market risk on this

investment portfolio.

Distribution Network

An HDFC Bank Branch

HDFC Bank is headquartered in Mumbai. The Bank has an network

of 1,725 branches spread in 771 cities across India. All branches are linked

on an online real-time basis. Customers in over 500 locations are also

serviced through Telephone Banking. The Bank has a presence in all major

industrial and commercial centers across the country. Being a

clearing/settlement bank to various leading stock exchanges, the Bank has

branches in the centers where the NSE/BSE have a strong and active

member base.

The Bank also has 3,898 networked ATMs across these cities.

Moreover, HDFC Bank's ATM network can be accessed by all domestic and

international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and

American Express Credit/Charge cardholders.

Capital Structure

At present, HDFC Bank boasts of an authorized capital of Rs 550 crore

(Rs5.5 billion), of this the paid-up amount is Rs 424.6 crore (Rs.4.2 billion).

In terms of equity share, the HDFC Group holds 19.4%. Foreign

Institutional Investors (FIIs) have around 28% of the equity and about 17.6%

is held by the ADS Depository (in respect of the bank's American

Depository Shares (ADS) Issue). The bank has about 570,000 shareholders.

Its shares find a listing on the Stock Exchange, Mumbai and National Stock

Exchange, while its American Depository Shares are listed on the New York

Stock Exchange (NYSE), under the symbol 'HDB'.

HSBC Demat Accounts are especially designed to give you the edge in

the stock markets today

You can purchase, hold and sell shares in electronic form

Get your Holding statement every 3 months, showing current

portfolio of shares

Avail of an Overdraft up to Rs.20 lakhs available against Demat

shares through Asset Link#

As an NRI, you can easily dematerialize your portfolio of shares in

India with us*

If you already hold an HSBC Current/Savings account, there be no

account opening charges and no minimum balance requirements for

your Demat Account

You can save on transaction costs with quick transfers

Say goodbye to risk of loss, theft or mutilation of shares

Now, stop worrying about bad deliveries, forgeries and duplicate

share certificates

Products & Services

Personal Banking

Savings Accounts

Salary Accounts

Current Accounts

Fixed Deposits

Demat Account

Safe Deposit Lockers

Loans

Credit Cards

Debit Cards

Prepaid Cards

Investments & Insurance

Forex Services

Payment Services

Net Banking

InstaAlerts

Mobile Banking

InstaQuery

ATM

Phone Banking

NRI Banking

Rupee Savings Accounts

Rupee Current Accounts

Rupee Fixed Deposits

Foreign Currency Deposits

Accounts for Returning Indians

Quick remit (North America, UK, Europe, Southeast Asia)

India Link (Middle East, Africa)

Cheque Lockbox

Telegraphic / Wire Transfer

Funds Transfer through Cheques / DDs / TCs

Mutual Funds

Private Banking

Portfolio Investment Schemes

Loans

Payment Services

Net Banking

InstaAlerts

Mobile Banking

InstaQuery

ATM

Phone Banking

FEE AND CHARGES

HDFC Minimum

1 Account Opening NIL --

2 Account Maintenance Rs. 500/- per anum Rs. 500/-

3 DematerializationsRs. 3 per certificate, plus

Rs. 35/- per requestRs. 38.00

4 Rematerialisation

At actual, as levied by the

Depository Currently Rs.

10/- per certificate

--

5 SELL0.04 % of the value of the

transaction

**

Minimum

Rs.20.00

6 BUY NIL --

7 Pledge Services *0.04% of the value of the

sharesRs. 25.00

8 Asset Holding NIL --

9 Debt Transactions – Sell

0.04 % of the value of the

transaction. Minimum Rs

500/- and Maximum Rs

5000/- per Txn

Rs. 500.00

per txn.

10 Debt Transactions – Buy NIL --

11

Mailing Charges for non

periodic statements and

other communication

Rs. 25/- per request for

inland address Rs. 500/-

per request for foreign

address

HOW TO OPEN A DEMATE ACCOUNT ?

There are two options available to open a demat account with our bank:

1. Customers could have/can open a savings/current account with

HDFC Bank. OR

2. Customers could pay an advance fee of Rs.2500/- for each demat

account which will be adjusted against service charges.

Requirements:-

1. Account opening form duly completed in all respects.

2. Photographs of all the authorized signatories duly signed across

to be affixed on the reverse of the specimen signature card.

3. Copy of Memorandum and Articles of Association duly attested

by the Company Secretary / Director of the company.

4. Board Resolution along with the name of the authorized

signatories & their specimen signature on the company's

letterhead stating that the company desires to open a demat

account with HDFC bank and that the authorized signatories will

be operating the said account as per the mode of operation given

in the board resolution.

5. DP Agreement to be executed on a stamp paper (value of stamp

paper as per the place of execution of agreement)

6. Tariff Sheet duly signed by all the authorized signatories.

7. Debit Authorization signed by the bank account holders as per

the mode of operation in the board resolution for the bank

account.

8. Proof of address of the corporate: Document registered with

ROC/ acknowledged copy of Income Tax return/ Bank

statement/ Leave & License agreement/ Agreement for purchase

of office premises.

9. Introduction by existing account holder or by applicant's bank.

The Requirements for opening a trust account are:

1. Attested copy of the trust resolution.

2. Attested copy of the registration certificate (Public Trust

Account) if the trust is registered under the Society Registration

Act of 1850, Indian Public Trust Act of 1950 or Indian Trust act.

3. Photographs of the trustees signed across.

4. Income Tax Exemption Certificate (optional). However, in case

of a company retirement trust (i.e. Provident Fund Trust, Pension

Fund, Gratuity fund, Super-annotations fund) the demat account

will be opened in the name of the trust.

5. PAN copy of the Trust.

6. PAN coy of the Trustees, incase of an unregistered trust.

HDFC SECURITIES

HDFC Securities (HDFCsec) is Equity Trading Company of

HDFC Bank. HDFC Securities provide both online trading and trading on

phone. The HDFC Securities trading account has a unique 3-in-1 feature that

integrates your HDFC Securities trading account with your existing HDFC

bank savings account and existing Demat account. Funds / shares are

seamlessly moved from the linked Demat/Bank account to execute the

transactions.

HDFC sec provides Cash-n-Carry on NSE and BSE, Day trading

on both NSE and BSE, Trade on Futures & Options on the NSE and Online

IPO Investment.

Features on HDFC Securities online trading

1. Seamless Transactions - By integrating your accounts, we ensure

minimal waste of time during movement of your funds and shares.

2. Speed - Orders are placed electronically, so proceeds are available

instantly.

3. No manipulation - To prevent any mismanagement, we will send you

an email confirmation, the minute your order is executed.

4. Safety and Security - HDFC Securities offer the highest level of

security such as 128-bit encryption technology.

5. Dedicated and Separate contact numbers - for trading over the phone

as well as for customer care.

Document required to open account with HDFC sec

Any Indian resident/non resident individual NRI (except for the US NRIs) or

an Indian Corporate can register with HDFCsec. However, to become a

member, you will have to open savings/current and demat accounts with

HDFC Bank. Following documents are required to open accouunt with

HDFCsec

1. One passport size photograph.

2. Copy of PAN card.

3. Identity proof - copy of passport or PAN card or voter ID or driving

license or ration card.

4. Address proof - copy of driving license or passport or ration card or

voter card or telephone bill or electricity bill or bank statement.

Brokerage and fees:

1. Rs. 799/- (Including trading account, bank account and DP account

with HDFC)

HDFC Bank savings account required a quarterly minimum balance

of Rs. 2,500/-. If you already have saving account or DP account with

HDFC, you could link them with trading account.

ICICI DEMATE ACCOUNT

Type of Account

ICICI Direct offers 3 different online trading platforms to its customers:

1. Share Trading Account

Share Trading Account by ICICI Direct is primarily for buying and

selling of stocks in BSE and NSE.

This account allows Cash Trading, Margin Trading, Margin PLUS

Trading, Spot Trading, Buy Today Sell Tomorrow and Call and Trade

on phone.

ICICIDirect.com website is the primary trading platform for this

trading account. They also provide installable application terminal

based application for high volume trader.

2. Wise Investment Account

Along with stock trading and IPO investing in BSE and NSE, Wise

Investment account also provide options to invest in Mutual Funds

and Bonds online.Online Mutual funds investment allows investor to

invest on-line in around 19 Mutual Fund companies. ICICI Direct

offers various options while investing in Mutual Funds like Purchase

Mutual Fund, Redemption and switch between different schemes,

Systematic Investment plans, Systematic withdrawal plan and

transferring existing Mutual Funds in to electronic mode. This account

also provides facility to invest in Government of India Bonds and

ICICI Bank Tax Saving Bonds.

3. Active Trader Account

Active Trader account gives more personalized investment options to

the investors. It allows investor to use online and offline stock trading.

It also provides with independent market expertise and support

through a dedicated Relationship Manager from ICICI.

Advantages of ICICI Demate Account

1. 3-in-1 account integrates your banking, broking and demat accounts.

All accounts are from ICICI and very well integrated. This feature

makes ICICI the most interesting player in online trading facility.

There is absolutely no manual interfere require. This is truly online

trading environment.

2. Unlike most of the online trading companies in India which require

transferring money to the broker's pool or towards deposits, at ICICI

Direct you can manage your own demat and bank accounts through

ICICIdirect.com. Money from selling stock is available in ICICI bank

account as soon as the ICICI Direct receives it.

3. Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal

Savings Schemes all from one website. General Insurance is also

available from ICICI Lombard.

4. Trading is available in both BSE and NSE.

Disadvantages

1. Getting access to ICICIDirect.com website during market session can

be frustrating.

2. ICICI Direct brokerage is high and not negotiable.

3. Not all stocks are available under Margin Plus

OPENING DEMATE ACCOUNT  

 

Demat account

There is no fee for opening a DP account with ICICI Bank. However, a

nominal fee towards services is levied as per our tariff. Opt for Standard

Rate Card or Frequent Trader Rate Card depending on your trading volume.

Or, if you wish to hold your Bonds in Demat form you can choose Bond

Rate Card.

 Account Opening Form to Open Securities Account

  Resident Non Corporate Account Opening Form

Resident Corporate Account Opening Form

 

Reparability

A. Reparable Demat Account

Reparable funds (i.e. those which can be taken abroad) need to be kept in a

separate bank account, i.e. NRE Bank account. Typically, funds brought in

from abroad are permitted in such an account. Investments made from such

funds can be repatriated, i.e. proceeds from sale or otherwise from such

investments can be taken abroad. Such investments are maintained in a

Reparable Demat account.

B. Non-reparable Demat Account

Non-reparable funds (i.e. those which cannot be taken abroad) must be kept

separate from repairable funds in a separate bank account i.e. NRO Bank

account. Investments made from such funds cannot be repatriated, i.e.

proceeds from sale or otherwise from such investments cannot be taken

abroad. Such investments are maintained in a Non-Reparable Demat

account. Money once transferred from NRE account to NRO account loses

its reparability and hence, cannot be transferred back to NRE account.

Mode of Investment

A. Portfolio Investment Scheme (PINS)

Portfolio Investment Scheme (PINS) is a scheme of the Reserve Bank of

India (RBI) under which the 'Non Resident Indians (NRI's)' and 'Person of

Indian Origin (PIOs)' can purchase and sell shares and convertible

debentures of Indian Companies on a recognized stock exchange in India

by routing all such purchase/ sale transactions through their account held

with a designated Bank Branch. The designated Bank maintains a record of

all investments done under PINS (PINS portfolio).

B. Non - PINS

Any investment other than under PINS is Typically, this includes:

1. Subscription to Primary market offerings (IPOs)

2. Investments made when resident in India.

3. Investments in Mutual funds

4. Investments in derivatives

5. Gifts and Inheritance

 

Deciding Combination

You may have to open demat accounts of a specific combination if you

already hold physical shares in that combination. Physical shares can be

converted into electronic form in your demat account by submitting the

certificates along with a demat request form. You should also open the

required combination under the correct type of demat account:

PINS NRE - For shares acquired earlier under PINS on repatriation basis

PINS NRO - For shares acquired earlier under PINS on non-repatriation

basis

Non-PINS NRE - For shares acquired earlier other than under PINS on

repatriation basis

Non-PINS NRO - For shares acquired earlier other than under PINS on

non-repatriation basis and also when 'Resident' in India

Charges of ICICI demate account

Particular Amt.

Opening account 975/-

Margin trade 0.3 to 0.1%

Squared off trade 0.2% to 0.425%

Delivery bases trade 0.25% to 0.75%.

Average trading volume 65000/-

Annual maintenance fee 500/- (actual 450/- ,50for including

e-mail or post statement.

Average balance 5000/-

Demat transaction rate 0.75% brokerage

Trading volume rate 0.05% brokerage

Transaction value 10000/-

Brokerage rate 85/-

Services (0.05% of the brokerage) nil

Demate charges nil

Annual services 500/-

Agreement stamp charge 100/-

Buying and selling share Nil

• No amount is required for opening the demat account.

These are applicable as both standard charges and frequent/sub broker

charges.

The ICICI demat account charge for annual service is Rs 500 and for

frequent/sub brokers is Rs 1200.

An agreement is required to make in a stamp paper of Rs 100.

The ICICI demat account charges are nil for buying shares.

The selling charges applicable are – Nil for trade on icicidirect.com

For internet submitted instructions – 0.02% (frequent/sub broker) and

0.04% (standard charges).

For instructions submitted through call centers – 0.02% (frequent/sub

broker) and 0.04% (standard charges).

For instructions submitted through branches – 0.02% (frequent/sub

broker) and 0.04% (standard charges).

If rejection fails Rs 30 are the standard applicable charges and Rs 15

are the applicable charges for frequent/sub brokers.

Dematerialization charges for each request form Rs 35 and Rs 2 for

each extra certificate.

Rematerialisation charges are Rs 20 for every 100 securities

ICICI demat account charges are nil for the closure of the account.

Rs 10 per ISIN are applicable for instruction submitted through

branches.

Additional account statements charge Rs 20 both standard rates and

for frequent and sub brokers.

Brokerage and fees

1. Account opening fees : Rs 750/- (One time non-refundable)

2. Brokerage : ICICIDirect.com brokerage varies on volume of trade

and inclusive of demat transaction charges, service taxes and courier

charges for contract notes. It ranges from 0.1% to 0.15% for margin

trades, 0.2% to 0.425% for squared off trades and 0.4% to 0.85%

on delivery based trades.

CONCLUSION

Comparison of two companies with fees and brokerage chares.

Particular HDFC ICICI

Account opening Nill 975/-

Annual maintenance Fee 500/- 500/-

Dematerialization 3/- per certificate ,

35/- per request.

2/- for each extra

certificate and 35/- per

request.

Rematerialisation 10/- per certificate, 20/- for every 100

securities.

Sell 0.04% of the value. Nil

Minimum 20/-.

Buy Nil Nil

Pledge services 0.04% value of per

transaction or minimum

25/-

Nil

Data transaction 1000/- 1000/-

Communication 20 rs per request and

500 per foreign address.

Call centre 0.02% to

0.04% of value.

Data Transaction on

Buy a share

Nil Nil

Conclusion: By studying comparative analysis of both

hdfc and icici bank demat account we should promote more

hdfc bank demat accounts since charges are minimum and sell

are more.