study on progress and investor's perception towerds dematerialization of shares

EXECUTIVE SUMMARY

The Capital market in our Indian economy is undergoing a process of structural

transformation and one such change is dematerialization. Dematerialization was a major

policy measure introduced by SEBI in 1996 to improve operational efficiency of the

Indian stock markets and it was made compulsory with effect from 15th January 1998.

Dematerialization is a process by which physical certificates of an equivalent number of

securities in electronic form and credited to the investor's account maintained with the

depository participant (DP).

This report focuses the progress of investors accounts and dematerialization of shares in

NSDL and CDSL. Trend percentage and trend line are the spastical tools that have been

used to identify the progress on dematerialization. the investor’s perception towards

dematerialization of shares had been analyzed based on a sample of 100 investors

through structured questionnaire.

“Study on progress and investors perception towards dematerialization of

shares.” is the topic head of the project report.

Financial products are those products which have values in monetary terms. The

Financial products are intangible in nature that means the customer cannot even

touch, smell or feel it. In this manner, it becomes a challenge for the sales personnel

in financial sector to convince the customer to invest in it. The sales personnel can

only guarantee for the benefit that the customer will get after a certain period of time

span.

The evaluation of financial planning has been increased through decades, which is

best seen in customer rise. Now a day’s investment of saving has assumed great

importance. According to the study of the Market, it is being observed that markets

are doing well in investments like, Mutual funds, Shares, Life Insurance etc. In near

1 | JK Padampat Singhania Institute of Management and Technology

future a proper financial planning is required to invest money in all type of financial

product because there is good potential in market to invest.

The main objective of this project is to know the Progress and Consumers perception

towards the Dematerialization of Shares with the people’s awareness and various

instruments available for Personal Financial Advising facility provided by Edelweiss

Broking Ltd.


Dematerialization

Dematerialization is a process by which physical certificates of an investor are converted

into electronic form and credited to the account of the depository participant. Dematted

securities do not have any certificate numbers or distinctive numbers and are dealt only in

quantity, i.e., the securities are replaceable.

Investors can dematerialize only those certificates that are already registered in their

names and are in the list of securities admitted for dematerialization. These are: shares,

scrip’s, stocks, bonds, debentures, stock or other marketable securities of a like nature in

or of any incorporated company or other body corporate, units of mutual funds, rights

under collective investment schemes and venture capital funds, commercial paper,

certificate of deposit, securities debt, money market instruments and unlisted securities,

underlying sharing of American Depository Receipts and Global Depository Receipts

issued to non-resident holders. Dematerialization is the process of converting physical

holdings into electronic form with the depository wherein the share certificates are

shredded and corresponding entry of the number of shares is done in the opened with the

depository.

The securities held in dematerialized form are fungible; that is, they do not bear any

notable feature like distinctive number, folio number or certificate number. Once shares

get dematerialized, they lose their identity in terms of share certificate distinctive

numbers and folio numbers.


Following requisites are necessary for dematerialization of securities:

1. Investors should have a depository account.

2. Securities should be from the eligible list of securities issued by the depository.

3. Securities must be in the name of the account holders and owned by him.

4. Separate demat requisition form is required for each issuer company.

5. Dematerialization Request Form (DRF) should be signed by all the holders so as to

match specimen signature.

Object Of Demat System

India has adopted this system in which book entry is done electronically. It is the system

where no paper is involved. Physical form is extinguished and shares or securities are

held in electronic mode. Before the introduction of the depository system by the

Depository Act, 1996, the process of sale, purchase and transfer of shares was a huge

problem and the safety perspective was zero.

Securities that can be dematerialized

The entire depository system in India is governed by the rules made by the market

regulator - SEBI. According to the SEBI (Depositories and Participants) Regulations,

1996, the following securities are eligible for holding in dematerialized form.


1. Shares, scrips, stocks, bonds, debentures, debenture stock or other marketable

securities of similar nature of any incorporated company or other body corporate,

including underlying shares of ADRs and GDRs.

2. Units of mutual funds, rights under collective investment schemes and venture capital

funds, commercial paper, certificate of deposit, securitized debt, money market

instruments, government securities, national saving certificates, kisan vikas patra and

unlisted securities.

What is a Depository?

The Depositories Act defines a depository as “a company formed and registered under

the Companies Act, 1956 and which has been granted a certificate of registration under

subsection (1A) of section 12 of Securities and Exchange Board of India Act, 1992.” The

main function of a depository is to dematerialize securities and enable their transactions

in book entry form.

As per The Bank for International Settlements (BIS), depository is “a facility for holding

securities which enables securities transactions to be processed by book entry. Physical

securities may be immobilized by the depository or securities may be dematerialized (so

that they exist only as electronic records)”.

In simple terms depository is an organization where securities of an investor are held in

electronic form.

(REF: BSE—BCCD study material v3)

Who is a Depository Participant?


A Depository Participant (DP) is an agent of the depository through which it interfaces

with the investor and provides depository services. Public financial institutions,

scheduled commercial banks, foreign banks operating in India with the approval of the

Reserve Bank of India, state financial corporations, custodians, stock-brokers, clearing

corporations /clearing houses, NBFCs and Registrar to an Issue or Share Transfer Agent

complying with the requirements prescribed by

SEBI can be registered as DP. Banking services can be availed through a branch whereas

depository services can be availed through a DP.

As on September 30, 2008, a total of 711 DPs (266 NSDL, 445 CDSL) are registered

with SEBI.

(REF: http://investor.sebi.gov.in/faq/dematfaq.html)

Number of Depositories in India

At present two Depositories viz.

1.) National Securities Depository Limited (NSDL)

NSDL is a public limited company incorporated under the Companies Act, 1956. Four

renowned institutions participate in it. Unit Trust of India (UTI), Industrial Development

Bank of India (IDBI), National Stock Exchange of India (NSE), State Bank of India

(SBI).UTI is the largest mutual fund of India and IDBI is the largest development bank,

NSE is the largest stock exchange of India and SBI is the largest commercial bank of

India having clearing facility. HDFC and Citibank also share in this system. NSDL is

managed by Board of directors headed by a managing director. It is governed by its bye-

laws and its business operations are regulated by business rules. NSDL interfaces with

the investors through players or business partners. Constituents of depository

compromise of clearing corporation, brokers, clearing member, registrar and transfer


agents, company or issuer, stock exchange, bank depository participant and investors. All

are electronically linked to the main depository for the settlement of trades and to

perform a daily reconciliation of all accounts held with NSDL.

2.) Central Depository Services (India) Limited (CDSL)

Second agency is CDSL - Central Depository Service (India) Limited. Main functions of

this agency are centralized database and accounting. Major participant in CDSL are LIC,

GIC and BSE. This agency is set up with the object to keep in mind to accelerate growth

of scripless trading, with major thrust of individual participation and creating competitive

environment, responsible to the user’s interests and demands to enhance liquidity. CDSL

aims to retain the entire data of the investors in the central database of CDSL.

NSDL and CDSL essentially perform the following functions through their various

participants

1. Enable surrender and withdrawal of securities to and from the depository.

2. Maintain investor holdings in the electronic form.

3. Effect settlement of securities traded on the Exchanges.

4. Carry out settlement of trades not done on the Stock Exchanges i.e. Off Market Trades.

5. Coordination of benefits accruing on the depository accounts of investors.

(REF: https://www.ilfsdp.com/faq_general.htm)


Objectives of the Study

1. To Study the progress of Dematerialization of Shares.

2. To identify the investor’s awareness towards dematerialization of Shares

3. To examine the satisfaction level of the investors towards the benefits of

dematerialization of Shares

4. To identify the investor’s opinion towards various charges levied by the

depository participants.

5. To offer suggestions based on the result of the study.


RESEARCH METHODOLOGY:

Research methodology is a systematic way to solve the research problems. It refers to

search for knowledge, a scientific and systematic search for information.

Marketing research is the systematic design, collection, analysis and reporting of data and

finding relevant to a specific marketing design, collection, analysis and reporting of data

and finding relevant to a specific marketing situation facing the company.

RESEARCH DESIGN:

Type of Research:

The research was a Descriptive Research.

Descriptive Research:

Descriptive research is also called Statistical Research. The main goal of this type of

research is to describe the data and characteristics about the population or phenomenon


being studied. The idea behind this type of research is to study frequencies, averages, and

other statistical calculations. Descriptive research is mainly done when a researcher wants

to gain a better understanding of a topic. It is quantitative and uses surveys and panels

and also the use of probability sampling. Descriptive research is the exploration of the

existing certain phenomena. Descriptive research generally precedes explanatory

research.

SAMPLING DESIGN:

Sampling may be defined as the selection of some part of an aggregate or totality on the

basis of which a judgment or inference about the aggregate or totality is made. It is the

process of obtaining information about an entire population by examining only a part of it

in which generalizations or influences are drawn based on the samples about the

parameters of population from which the samples are taken.

Random Sampling:

Random sampling is the sampling technique I have used in my research.

SAMPLING AREA:

Gurgaon, NCR

SAMPLE SIZE:

100


INDUSTRY OVERVIEW

HISTORY

HISTORY OF THE STOCK BROKING INDUSTRY

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200

years ago. The earliest records of security dealings in India are meager and obscure.

By 1830's business on corporate stocks and shares in Bank and Cotton presses took place

in Bombay. Though the trading list was broader in 1839, there were only half a dozen

brokers recognized by banks and merchants during 1840 and 1850. The 1850's witnessed

a rapid development of commercial enterprise and brokerage business attracted many

men into the field and by 1860 the number of brokers increased into 60.


In 1860-61 the American Civil War broke out and cotton supply from United States of

Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers

increased to about 200 to 250. However, at the end of the American Civil War, in 1865, a

disastrous slump began (for example, Bank of Bombay Share which had touched Rs 2850

could only be sold at Rs. 87). At the end of the American Civil War, the brokers who

thrived out of Civil War in 1874, found a place in a street (now appropriately called as

Dalal Street) where they would conveniently assemble and transact business.

In 1887, they formally established in Bombay, the "Native Share and Stock Brokers'

Association" (which is alternatively known as "The Stock Exchange"). In 1895, the Stock

Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the

Stock Exchange at Bombay was consolidated.

Thus in the same way, gradually with the passage of time number of exchanges were

increased and at currently it reached to the figure of 24 stock exchanges.

DEVELOPMENT

An important early event in the development of the stock market in India was the

formation of the Native Share and Stock Brokers’ Association at Bombay in 1875, the

precursor of the present-day Bombay Stock Exchange. This was followed by the

formation of associations /exchanges in Ahmedabad (1894), Calcutta (1908), and Madras

(1937). IN addition, a large number of ephemeral exchanges emerged mainly in buoyant

periods to recede into oblivion during depressing times subsequently.

In order to check such aberrations and promote a more orderly development of the stock

market, the central government introduced a legislation called the Securities Contracts

(Regulation) Act, 1956. Under this legislation, it is mandatory on the part of stock

exchanges to seek government recognition. As of January 2002 there were 23 stock

exchanges recognized by the central Government. They are located at Ahmedabad,


Bangalore, Baroda, Bhubaneswar, Calcutta, Chennai,(the Madras stock Exchanges ),

Cochin, Coimbatore, Delhi, Guwahati, Hyderabad, Indore, Jaipur, Kanpur, Ludhiana,

Mangalore, Mumbai(the National Stock Exchange or NSE), Mumbai (The Stock

Exchange), popularly called the Bombay Stock Exchange, Mumbai (OTC Exchange of

India), Mumbai (The Inter-connected Stock Exchange of India), Patna, Pune, and Rajkot.

Of course, the principle bourses are the National Stock Exchange and The Bombay Stock

Exchange, accounting for the bulk of the business done on the Indian stock market.

While the recognized stock exchanges have been accorded a privileged position, they are

subject to governmental supervision and control. The rules of a recognized stock

exchanges relating to the managerial powers of the governing body, admission,

suspension, expulsion, and re-admission of its members, appointment of authorized

representatives and clerks, so on and so forth have to be approved by the government.

These rules can be amended, varied or rescinded only with the prior approval of the

government.

BSE(BOMBAY STOCK EXCHANGE)

The Stock Exchange, Mumbai, popularly known as "BSE" was established in 1875 as

"The Native Share and Stock Brokers Association". It is the oldest one in Asia, even

older than the Tokyo Stock Exchange, which was established in 1878. It is a voluntary

non-profit making Association of Persons (AOP) and is currently engaged in the process

of converting itself into demutualized and corporate entity. It has evolved over the years

into its present status as the premier Stock Exchange in the country. It is the first Stock

Exchange in the Country to have obtained permanent recognition in 1956 from the Govt.

of India under the Securities Contracts (Regulation) Act, 1956.


The Exchange, while providing an efficient and transparent market for trading in

securities, debt and derivatives upholds the interests of the investors and ensures

redressed of their grievances whether against the companies or its own member-brokers.

It also strives to educate and enlighten the investors by conducting investor education

program and making available to them necessary informative inputs.

A Governing Board having 20 directors is the apex body, which decides the policies and

regulates the affairs of the Exchange. The Governing Board consists of 9 elected

directors, who are from the broking community (one third of them retire ever year by

rotation), three SEBI nominees, six public representatives and an Executive Director &

Chief Executive Officer and a Chief Operating Officer.

NSE(NATIONAL STOCK EXCHANGE)

NSE was incorporated in 1992 and was given recognition as a stock exchange in April

1993. It started operations in June 1994, with trading on the Wholesale Debt Market

Segment. Subsequently it launched the Capital Market Segment in November 1994 as a

trading platform for equities and the Futures and Options Segment in June 2000 for

various derivative instruments.

NSE has been able to take the stock market to the doorsteps of the investors. The

technology has been harnessed to deliver the services to the investors across the country

at the cheapest possible cost. It provides a nation-wide, screen-based, automated trading

system, with a high degree of transparency and equal access to investors irrespective of


geographical location. The high level of information dissemination through on-line

system has helped in integrating retail investors on a nation-wide basis. The standards set

by the exchange in terms of market practices, Products, technology and service standards

have become industry benchmarks and are being replicated by other market participants.

Within a very short span of time, NSE has been able to achieve all the objectives for

which it was set up. It has been playing a leading role as a change agent in transforming

the Indian Capital Markets to its present form. The Indian Capital Markets are a far cry

from what they used to be a decade ago in terms of market practices, infrastructure,

technology, risk management, clearing and settlement and investor service.


NCDEX (NATIONAL COMMODITIES AND DERIVATIVES

EXCHANGE)

NCDEX started working on 15th December, 2003. This exchange provides facilities to

their trading and clearing member at different 130 centers for contract.

In commodity market the main participants are speculators, hedgers and arbitrageurs.

Promoters of NCDEX are

National Stock Exchange(NSE)

ICICI bank

Life Insurance Corporation(LIC)

National Bank for Agricultural and Rural Development (NABARD)

IFFICO

Punjab National Bank (PNB)

CRISIL

WHY NCDEX?

NCDEX is nationalized screen based system which is providing transparent,

private and easy services.

NCDEX is one of the traditional media which gives online information

NCDEX is one of the Indian commodity exchange, constructed on the basis of the

current national institutes the exchange has been established with the coloration of

leading institutes like NABARD, LIC, NSI etc….

In India NCDEX has maximum settlement guarantee fund.

NCDEX has appointed two exports for checking quality at the time of delivery


FACILITIES PROVIDED BY NCDEX

NCDEX has developed facility for checking of commodity and also provides a

wear house facility

By collaborating with industrial partners, industrial companies, news agencies,

banks and developers of kiosk network NCDEX is able to provide current rates

and contracts rate.

To prepare guidelines related to special products of securitization NCDEX works

with bank.

To avail farmers from risk of fluctuation in prices NCDEX provides special

services for agricultural.

NCDEX is working with tax officer to make clear different types of sales and

service taxes.

NCDEX is providing attractive products like “weather derivatives”


MCX(MULTI COMMODITY EXCHANGE)

‘MULTI COMMODITY EXCHANGE’ of India limited is a new order exchange with

a mandate for setting up a nationwide, online multi-commodity marketplace, offering

unlimited growth opportunities to commodities market participants. As a true neutral

market, MCX has taken several initiatives for users in a new generation commodities

futures market in the process, become the country’s premier exchange.

MCX, an independent and a de-mutualized exchange since inception, is all set up to

introduce a state of the art, online digital exchange for commodities futures trading in the

country and has accordingly initiated several steps to translate this vision into reality.

Market Watch:

The market watch window is used to view the market details for a particular or group of

contracts and for a particular instrument type. This window displays the following

details: Symbol, Expiry, price quotation unit, buy qty, buy price, sell price, sell qty, last

traded price, D.P.R, volume (in 000’s), value (in lac),% change, average trade price, high,

low, open, close & open interest.


Placing Order

Settlement of trades

Decision to trade

Trade Execution

Clearing of Trades

Funds or Securities

Transaction Cycle

TRANSACTION CYCLE

A person holding assets (Securities/Funds), either to meet his liquidity needs or to

reshuffle his holdings in response to changes in his perception about risk and return of the

assets, decides to buy or sell the securities. He selects a broker and instructs him to place

buy/sell order on an exchange. The order is converted to a trade as soon as it finds a

matching sell/buy order. At the end of the trade cycle, the trades are netted to determine

the obligations of the trading member’s securities/funds as per settlement cycle.

Buyer/seller delivers funds/ securities and receives securities/funds and acquires

ownership of the securities.


A securities transaction cycle is presented above. Just because of this Transaction cycle,

the whole business of Securities and Stock Broking has emerged. And as an extension of

stock broking, the business of Online Stock broking/ Online Trading/ E-Broking has

emerged.


MAJOR PLAYERS

1. S S KANTILAL ISHWARLAL SECURITIES PVT LTD. (www.sharekhan.com)

2. ICICI WEB TRADE LTD. (www.icicidirect.com)

3. 5 PAISA.COM (www.5paisa.com)

4. KOTAK SECURITIES LTD. (www.kotakstreet.com)

5. INDIABULLS (www.indiabulls.com)

6. MOTILAL OSWAL SECURITIES LTD.

7. HDFC SECURITIES LTD. (www.hdfcsec.com)

8. UTI SECURITIES LTD.

9. IDBI CAPITAL MARKET SERIVICES LTD.

10. REFCO SIFY SECURITIES PVT LTD.

Parameters A/c Opening Fee Brokerage Interface

Trading

A/c

Demat Delivery Square

Off

Banks Associated

with

Edelweiss 750 Nil 0.50 0.10 HDFC,ICICI,AXIS,

YES Bank,

Kotak Mahindra

Sharekhan 750 NIL 0.50 0.10 HDFC, UTI, OBC,

IDBI & Citibank

ICICI Direct 750 NIL 0.75 0.18 ICICI Bank

Indiabulls 750 250 0.40 0.10 N.A.


http://www.hdfcsec.com/

http://www.indiabulls.com/

http://www.kotakstreet.com/

http://www.5paisa.com/

http://www.icicidirect.com/

http://www.sharekhan.com/

5 paisa 800 NIL 0.20 0.05 Citibank, HDFC,

OBC, UTI & ICICI

Bank

Kotak Street 500 N.A. 0.59 0.06 Kotak Bank &

Citibank

HDFC Securities 700 NIL 0.50 0.15 HDFC & Other 4

Banks

S. S. KANTILAL ISHWARLAL SECURITIES PVT. LTD. (sharekhan.com):

Sharekhan, India’s leading stock broker is the retail arm of SSKI, and offers you

depository services and trade execution facilities for equities, derivatives and

commodities backed with investment advice tempered by decades of broking experience.

A research and analysis team is constantly working to track performance and trends.

That’s why Sharekhan has the trading products, which are having one of the highest

success rates in the industry. Sharekhan is having 240 share shops in 110 cities; the

largest chain of retail share shops in India is of Sharekhan.

In future, Sharekhan is planning to enter in Mutual funds, Insurance sector and banking

sector to expand beyond the market currently covered by it. And it has started MF

(Mutual Funds) on priority basis but wants to grow in it.

ICICI WEB TRADE LTD. (ICICIdirect.com):

ICICIdirect.com was the first entrant into e-broking. ICICdirect.com provides the 3-

in-1 to the users which ties in their saving bank account and their Demat account to their

brokerage account electronically. This integration ensures that money is transferred

to/from their bank account and the shares are transferred from/to their Demat account


automatically without writing any cheques or transfer instructions while carrying out

their trades in shares.

ICICIdirect.com has the option of trading in shares in cash, margin or spot segments. An

investor can also invest in 14 Mutual Funds (Prudential ICICI MF, Franklin Templeton

India MF, Alliance Capital MF, JM MF, Birla Sun Life MF, Sundaram MF, IL&FS MF,

Principal MF, HDFC MF, Standard Chartered MF, Reliance Capital MF, Kotak

Mahindra MF, TATA MF and DSP MERRILL LYNCH MF) through their trading

account.

ICICIdirect.com doesn’t provide the facility of trading in a traditional way.

5PAISA.COM

5paisa is the trade name of India Infoline Securities Private Limited (5paisa), member of

National Stock Exchange and The Stock Exchange, Mumbai. 5paisa is a wholly owned

subsidiary of India Infoline Ltd, India’s leading and most popular finance and investment

portal. 5paisa has emerged as one of leading players in e-broking space in India.

The company’s brokerage is one of the lowest in the industry. It also provides the

research on commodities. Investors can benefit from its analysis and advice available at

the click of the mouse. For those who prefer to trade the traditional way, India Infoline

investor points are available across the country.

India Infoline was founded by a group of professionals in 1995. Its institutional investors

include Intel Capital, one of the leading technology companies in the world promoted by

the UK government, ICICI, TDA and Reeshanar. The company offers a slew of products

such as stock and derivatives broking, commodities broking and mutual funds.


KOTAK SECURITIES LIMITED (kotakstreet.com):

Kotak Securities Ltd., a strategic joint venture between Kotak Mahindra Bank and

Goldman Sachs (holding 25% - one of the world’s leading investment banks and

brokerage firms) is India’s leading stock broking house with a market share of 5 - 6 %.

Kotak Securities Ltd. has been the largest in IPO distribution - It was ranked number One

in 2003-04 as Book Running Lead Managers in public equity offerings by PRIME

Database. It has also won the Best Equity House Award from Finance Asia - April 2004.

Kotak Securities Ltd is also a depository participant with National Securities Depository

Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit

services wherein the investors can use the brokerage services of the company for

executing the transactions and the depository services for settling them. The company has

42 branches servicing around 1, 00,000 customers. Kotakstreet.com the online division of

Kotak Securities Limited offers Internet Broking services and also online IPO and Mutual

Fund Investments.

Kotak Securities Limited manages assets over 1700 crores under Portfolio Management

Services (PMS) which is mainly to the high end of the market. Kotak Securities Limited

has newly launched “Kotak Infinity” as a distinct discretionary Portfolio Management

Service which looks into the middle end of the market.

INDIA BULLS

Indiabulls is India's leading retail financial services company with 77 locations spread

across 64 cities. Its size and strong balance sheet allows providing varied products and

services at very attractive prices, our over 750 Client Relationship Managers are

dedicated to serving your unique needs.

Indiabulls is lead by a highly regarded management team that has invested crores of

rupees into a world class Infrastructure that provides real-time service & 24/7 access to


all information and products. The Indiabulls Professional Network offers real-time

prices, detailed data and news, intelligent analytics, and electronic trading capabilities,

right at your finger-tips. This powerful technology is complemented by our

knowledgeable and customer focused Relationship Managers.

Indiabulls offers a full range of financial services and products ranging from Equities,

Derivatives, Demat services and Insurance to enhance wealth and to achieve the financial

goals.

MOTILAL OSWAL SECURITIES LTD. (MOSt):

One of the top-3 stock-broking houses in India, with a dominant position in both

institutional and retail broking, MOSt is amongst the best-capitalized firms in the broking

industry in terms of net worth. MOSt was founded in 1987 as a small sub-broking unit,

with just two people running the show. Focus on customer-first-attitude, ethical and

transparent business practices, respect for professionalism, research-based value investing

and implementation of cutting-edge technology have enabled it to blossom into a

thousand-member team.

The institutional business unit has relationships with several leading foreign institutional

investors (FIIs) in the US, UK, Hong Kong and Singapore. In a recent media report

MOSt was rated as one of the top-10 brokers in terms of business transacted for

FIIs.

The retail business unit provides equity investment solutions to more than 50,000

investors through 270 outlets spanning 150 cities and 22 states. MOSt provides Advice-

Based Broking, Portfolio Management Services (PMS), E-Broking Services,

Depository Services, Commodities Trading, and IPO and Mutual Fund Investment

Advisory Services. Its Value PMS Scheme gave a 160% post-tax return for the year

ended March 2004

In AsiaMoney Brokers Poll 2003 MOSt has been rated as the Best Domestic Research

House- Mega Funds ,while in 2000 and 2002 it has been rated as the Best Domestic


Equity Research House and Second best amongst Indian Brokerage firms

respectively.

HDFC SECURITIES LTD (HDFCsec):

HDFC securities is a brand brought to you by HDFC Securities Ltd, which has been

promoted by the HDFC Bank & HDFC with the objective of providing the diverse

customer base of the HDFC Group and other investors a capability to transact in the

Stock Exchanges & other financial market transactions. The services comprise online

buying and selling of equity shares on the National Stock Exchange (NSE). Buying and

selling of select corporate debt and government securities on the NSE would be

introduced in a subsequent phase. In a few months, they will also start offering the

following online trading services on the BSE and NSE:

1. Buying and selling of shares on the BSE

2. Arbitrage between NSE & BSE

3. Trading in Derivatives on the NSE

4. Margin trading products.

They are also planning to include buying and selling of Mutual Funds, IPO subscriptions,

Right issues, purchase of Insurance policies and asset financing.

UTI SECURITIES LTD.: (UTISEL)

UTI Securities Ltd was incorporated on June 24, 1994 by Unit Trust of India as a 100%

subsidiary and on the repealing of the UTI Act, the capital is now held by the

Administrator of the Specified Undertaking of Unit Trust of India (ASUUTI). UTI


Securities has been working as an independent professional entity for providing financial

intermediary and advisory services to its corporate and retail clientele.

The Company has presence in major cities with 20 branches and 50 franchisees to service

a wide range of clients. The company has also invested in the joint-venture company with

Standard Chartered Bank viz. Standard Chartered UTI Securities (P) Ltd. that is

engaged in primary dealership and Government securities. The company is very soon

going to start Commodity Trading through its subsidiary, USEc Commodities Ltd, which

provides facility of commodity trading on NCDEX and MCX.

IDBI Capital Market Services Ltd.

IDBI Capital is a leading Indian securities firm offering a complete suite of products and

services to individual, institutional and corporate clients.

IDBI Capital Market Services Ltd. (IDBI Capital), a wholly owned subsidiary of

Industrial Development Bank of India (IDBI), is a leading Indian securities firm, offering

a complete suite of products and services to individual, institutional and corporate clients.

The services include fixed income trading, equities brokerage, debt and equity

derivatives, research, private placements, depository services, portfolio management and

distribution of financial products. Over the last five years, we have emerged as a leading

player in each of these businesses.

March 1995 - Commenced Equity Broking on NSE CM segment

July 1995 - Built agent Distribution Network across the country

October 1996 - Commenced Debt Broking on NSE WDM segment

December 1996 - Started operations as a Depository Participant

1996 - Started to act as Arranger to Privately Placed Bond issues

April 1998 - Commenced operations as a Portfolio Manager

February 1999 - Acquired membership of BSE, Mumbai

November 1999 - Started operations as a Primary Dealer

June 2000 - Acquired Derivatives memberships of BSE and NSE


March 2002 - Achieved an outright secondary market turnover exceeding

Rs100,000

October 2002- Commenced trading in Interest Rate Swaps

REFCO - SIFY SECURITIES INDIA PVT. LTD

Refco-Sify Securities India Pvt. Ltd., headquartered in Mumbai, is a joint venture

between the Refco Group Holding Ltd., USA; and Satyam Infoway Limited (NASDAQ:

SIFY) to offer online and offline equity and derivatives trading for retail customers as

well as execution and clearing services for financial institutions.

Refco also provides clients with prime brokerage services, fixed income, equities, foreign

exchange, OTC derivatives and asset management. Refco is a leader in providing clients

with the latest technological advances in products and services. Its proprietary systems

and global infrastructure provide the flexibility to meet all client requirements.


INDUSTRY ANALYSIS

INDUSTRY ANALYSIS USING PORTER’S 5 FORCES MODEL

SUPPLIERS

NSDL & CSDL are the regulatory bodies for Depository Participants like SSKI,

SHCIL, ICICIdirect.com, etc. Also these regulatory bodies have got an upper

hand as the bargaining power stock broking houses like SSKI, etc. would be less.

NSE & BSE are playgrounds where common an investor trade through stock

broking houses, for which they have to take permission from NSE/BSE.

NSE & BSE are under the purview of SEBI, that’s why stock broking houses like

SSKI, have low bargaining power. But here there is one advantage that NSE/BSE

have i.e. they cannot go for forward integration.

Web maintainers are companies which maintain web sites & technical aspects of

the same. Here stock broking houses like SSKI can have more bargaining power

due to stiff competition among web maintaining companies.

Web maintainers are companies who make and maintain software’s for stock

broking houses. If say for example stock broking houses switches over to other

web maintainers then that company cannot understand the mechanisms of

software’s. So it is quite high switching cost.


BUYERS

There are various types of investors who trade through stock broking houses like

SSKI, which includes investors like small investors, medium net worth investors,

business partners, institutional investors and mutual fund companies.

Here the bargaining power of stock broking houses depends on how big the

investor is.

So here we can say that bargaining power of stock broking houses is high in case

of small investors & HUF.

While the bargaining power is moderate in case of HNI (High New Worth

Investors)/ MNI’s (Medium Net Worth Investors) and business partners.

But the in case of mutual fund companies and institutional investors bargaining

power is less.

There is competitive buzz in stock broking industry; competitors are offering low

brokerage and best services with added feature. So switching cost is pretty much

less. So the buyer can easily switch over to competitors product.


COMPETITORS

The company is facing the competition from local as well as national level

players. The local players provide facility for off-line trading while the national

players like ICICIdirect.com and Kotakstreet.com, HDFC Security provide online

trading services.

There are also other big names like Indiabulls, Motilal Oswal, 5paisa and

Marwadi encircles the company form both the sides by providing online and off-

line trading with competitive services.

POTENTIAL ENTRANTS

The potential entrants in like Investmart, Jeojit and Cipher which are coming in

near future to Rajkot City.

Nationalized banks are also thinking to enter in this field by tying up with broking

houses. E.g. Bank Of Baroda.

SUBSTITUES

Here substitutes are such instruments which can be used instead of investing in

shares.

The instruments like Bank FD, insurance, mutual funds are the substitutes.

If the use of this instruments increase this may be disadvantage for the stock

broking houses.

The companies and banks which are having these instruments can plunge into this

industry.


ENTRY BARRIERS

Huge capital : - Capital is necessary not only for fixed facilities but also for

customer’s credit and absorbing start up losses. To start a stock broking house,

one needs huge capital for technology up gradation and skilled manpower.

Technology : - Technology for stock broking houses is life saving device. Stock

broking requires huge capital to make their products user friendly, which in turn

requires capital to employ skilled manpower. Thus, technology could be one of

the entry barriers.

Regulatory Constraints : - Obtaining a license is a tedious job for a stock

broking house. It should comply with the regulation of the governing bodies like

SEBI, NSDL, etc. For a stock broking houses to plunge into the stock broking

industry, it needs to have some kind of financial background and expertise. Thus,

regulators constraints could be an entry barrier.

Experience curve : - The core competency in this industry is the services which

are provided to the end-users and the research based activities which includes

“TIPS”, fundamental as well as technical script analysis. Also the most important

thing which helps already established firms is-“TRUST” which people would be

having on firms like SSKI , Motilal Oswal, etc. this is very difficult for new

companies to imitate.

Network : - The “Reach” to the customer is the key factor in the industry. The

network of the companies like Motilal Oswal, Sharekhan, and ICICI is very

efficient and spreaded all over India. It will take time for a new entrant to

establish such a huge network (e.g. Marwadi), which say that, “Network can

come up as most difficult entry barrier to overcome.”


Expected Retaliation : - Whenever a new player comes in the industry, the old

companies have an option to reduce the prices of their product. This kind of

practice is called expected Retaliation which is also possible in this industry in

terms of less brokerage rates and reduced account opening charges. E.g. before

the entry of so many mew companies, Sharekhan was having two types of

accounts viz. speed trade speed trade plus, which were costing 1000 & 1500

account opening charges respectively. But due to competition, they have come up

with only one account i.e. speed trade plus with the account charges of Rs.1000.

COMPETITIVE ANALYSIS

FOLLOWER:

The followers are those who just blindly follow the other player which are

leader and challenges.

The players like 5 paisa, Motilal Oswal, HDFC Securities, Kotakstreet are the

followers.

LEADER:

Edelweiss Broking Ltd. is a leader in the online account which is having

1, 80,000 accounts in the country.

While in offline account Sharekhan is leading with 64,000 offline accounts.

NICHER:

Edelweiss Broking and ICICI Direct are the two stock broking houses which

are focusing only on online investors.


CHALLENGER:

Sharekhan, Kotakstreet and Indiabulls come under this head.

Sharekhan challenges competitors by providing quality services and research

based advice.

Indiabulls is also challenging with low brokerage rates and class one services.

Traditional Broking

Traditionally In stock Market, the investors invest their money in shares under the

guidance of the Brokers of any stock broking company. This is convenient to those

investors who are not familiar with the computer and the use of internet. But it requires

more dealers to the share broking companies to give guidance related to investment.

There was a chance of inaccuracy of price because it is a time consuming process. The

cost of the company also increases due to more paperwork. The investor point of view,

there was a problem of privacy. The information of investor may leak by the broker. So,

to remove these limitations of traditional broking, there was an emergence of new

concept e-Broking.

E- Broking

Today is world of technology. So, the person who adopt it, get the success. So, E-Broking

means broking through electronic means. E-Broking is the broking in which the investors

who are familiar with the use of computer and Internet they directly trade in stock

market. They trade any time at any place when the stock market is open. The cost of

transaction is also reducing with time. The investors have a large range of option for the

trading. It is a paperless transaction so it reduces the cost of company. There was a

facility of live streaming quotes, which give exact price of share which prevailing in the


market at that time. There are two types of online trading service: DISCOUNT BROKER

and FULL SERVICE ONLINE BROKER.

Discount online brokers allow you to trade via Internet at reduced rates. Some provide

quality research, other don’t. Full service online brokerage is linked to existing

brokerage. These brokers allow their client to place online orders with the option of

talking/chatting to brokers if advice is needed. Brokerage rates here are higher. online

trading is still in its infancy stage in India. with trading turnover at around Rs.10 crores

per day from online trading compared to a combined gross turnover of around Rs.9000-

10000 crores handled by the BSE and NSE together, online trading has a long way to go.

INTERNET TRADING IN INDIA:

In the past, investors had no option but to contact their broker to get real time access to

market data. The Net brings data to the investor on line and net broking enables him to

trade on a click. Now information has become easily accessible to both retail as well as

big investors.

The development of broking in India can be categorized in 3 phases:

1. Stock brokers offering on their sites features such as live portfolio manager, live

quotes, market research and news to attract more investors.

2. Brokers offering on line broking and relationship management by providing and

offering analysis and information to investors during broking and non-broking

hours based on their profile and needs, that is, customized services.

3. Brokers (now e-brokers) will offer value management or services such as initial

public offerings on line, asset allocation, portfolio management, financial

planning, tax planning, insurance services and enable the investors to take better

and well-considered decisions.

In the US, 82 per cent of the deals are done on line. The European on line broking market

is expected to be of $8 billions and is likely to raise five fold by 2002. In India, presently

Internet trading can take place through the order routing system, which will route client


orders to exchanges trading systems for execution of trades on stock exchanges (NSE and

BSE). This will also require interface with banks to facilitate instant cash debit or credit

and the depository system for debit or credit of securities.

COMPANY PROFILE

Edelweiss, a rare flower found in Switzerland. A graphic flower

that represents ideas. Around it, the protective arms of the letter ‘e’:

They believe ideas create wealth, but values protect it. It is the practice

of this core thought that has led to Edelweiss becoming one of the

leading financial services company in India. Its current businesses

include investment banking, securities broking, and investment management. They provide a

wide range of services to corporations, institutional investors and high net-worth individuals.

The core inspiring thought of ‘ideas creating wealth and values protecting it’ is translated

into an approach that is led by entrepreneurship and creativity and protected by intellectual

rigor, research and analysis.


Edelweiss Today

One of the leading financial services companies in India

A revenue CAGR of 103% over the last 10 years

One of the largest equity research teams

–Differentiated research capabilities

–Only Quant team in India

–Only Analytics team in India

–Highly respected and acknowledged Thematic Research

In India

–Closed over 100 transactions in investment banking

–Top 5 Domestic Brokerages in India

–Top 3 Derivatives Desks

One of the first and largest alternative investment desks


Edelweiss Approach

Client Focus

Edelweiss is driven by the emphasis we place on building long-term

relationships with our clients. We work closely with our clients to equip them

with the ability to address large, fast-growing market opportunities. Our

emphasis on long-term relationships also means that we have a significant

ongoing involvement with almost all of the clients that we work with.

Execution Orientation

Edelweiss focuses obsessively on delivering high quality execution through

its experienced team of professionals. Each team is led by senior personnel

and is highly research and ideas driven. Edelweiss places strong emphasis on

confidentiality and integrity in a sensitive business environment.

Culture

Edelweiss fosters a culture that is entrepreneurial and results-driven and that

emphasizes teamwork and intellectual rigor. It’s team is encouraged to

display higher levels of initiative, drive, and hunger for learning and taking on

additional responsibility.

Professional Integrity

Edelweiss place a strong emphasis on confidentiality, honesty and integrity in

our business dealings Edelweiss expect its people to maintain high ethical


standards, both in their professional and personal lives. Edelweiss strive to be

fair in all our dealings. It respects its competitors.

Research Driven

All businesses of Edelweiss are built on a research and analytics foundation.

The company’s understanding of underlying market trends and strong

analytical expertise has resulted in a demonstrated ability to identify

emerging trends and themes early. Edelweiss seek to provide the highest

quality research and investment opinions to its clients.

Board of Directors of Edelweiss Capital Limited


Rashesh Shah

Venkat Ramaswamy

Kunnasagaran Chinniah

Narendra Jhaveri

P. N. Venkatachalam

Ramanan Raghavendran

Sanjay Santhanam

Sunil Wadhwani

Navtej S. Nandra

Company Secretary

B. Renganathan

Statutory Auditors

B S R & Associates

Internal Auditors

M. P. Chitale & Co.

Bankers

Axis Bank Limited

Citibank N.A.

HDFC Bank Limited

HSBC Limited

ICICI Bank Limited


IDBI Limited

Standard Chartered Bank

State Bank of India

Senior Management Team

Rashesh Shah

Chairman & CEO

Deepak Mittal

CEO, Edelweiss Tokio Life Insurance Company Limited

Naresh Kothari

President & Co-head Institutional Equities, Private Client Services

Peeyoosh Chadda

Co-head - Asset Management

Vikas Khemani

Executive Vice President &Co-head - Institutional Equities

Venkat Ramaswamy

Executive Director

Himanshu Kaji

CFO & Group COO

Rujan Panjwani

President & Co-head - Asset Management

Rajeev Mehrotra

Executive Vice President & Head - Special Opportunities Investments

Ravi Bubna

Executive Vice President & Co-Head - ECL Finance

Edelweiss Business Principles


‘Ideas create, values protect’ is how we define what Edelweiss believes in. But when we say ‘values protect’ what do we mean? Here’s a handy guide to the values and principles we will live by and live up to.

We will be a Thinking Organization. We will constantly bring ‘thought’ to everything we do. Our clients’ and our own success depends on our ability to use greater ideation and more imagination in our approach.

We will be Fair to our clients, our employees and all stake holders. We want our clients and our employees to be ‘richer’ for their relationship with us.

We will take care of our People seriously. Our policies – in spirit and in letter – will ensure transparency and equal opportunity for all. We will go beyond the normal goals of attracting, recruiting, retaining and rewarding fine talent: We will ensure that every individual in Edelweiss has an opportunity to achieve their fullest potential.

We will operate as a Partnership, internally and externally. Though individuals are very often brilliant, we believe teamwork and collaboration will always ensure a better and more balanced organization. We will also treat our clients as partners and show them the same respect and consideration that we would toward our internal team members.

We will focus on the Long Term. Though the world will change a lot in the coming years and our assumptions for the future may not hold up, we will reflect on the long-term implications of our actions. Even when making short-term decisions we will be aware of the long-term implications.

We will focus on Growth for our clients, employees and shareholders.

Our Reputation and image is more important than any financial reward. Reputation is hard to build and even harder to rebuild. Reputation will be impacted by our ability to think for our clients, maintain confidentiality and by


our adherence to our value system.

We will Obey and Comply with the rules of the land. We will maintain the highest standard of integrity and honesty. When we are unclear we will seek clarifications.

We will respect Risk. Our business is going to be a constant challenge of balancing risk and reward. Our ability to constantly keep one eye on risk will guide us through this fine balance.

Our Financial Capital is a critical resource for growth. We will endeavor to grow, protect, and use our financial capital wisely.


Brokerage Plans:

Advance Brokerage (ADB) Plans:

Standard Plans (For Margin Money):


Value added services with each subscription plan:

Plan 1 (Code: EBSPN01)*

• Client profiling and investment need analysis

• Weekly call on products that suit client profile


• Free subscription to Xpress – Web-based Trader Terminal Screen






• Fundamental research reports from Edelweiss' coverage of client's choice

and the updates on those stocks


• Special analytical reports as published by Edelweiss from time to time,

which suit the client's profile and requirement




• Invitation to participate in select EW conferences and seminars









• Quarterly meeting with analyst









Plan Code: EBSPN06-08*

• Free subscription to Xpress – Web based Trader Terminal Screen

• Quarterly meeting with analyst


• Fundamental research reports from edelweiss coverage of client’s choice

and the updates on those Stocks


• Special analytical reports as published by edelweiss from time to time,

which suit the client’s profile and requirement



Edelweiss USP’s:

Trading system

Integrated online and offline

You can call a dealer and trade, and monitor your trades

Easy and clutter free trading pages

Convert delivery position to intraday and vis a versa whenever you

want

Auto suggest for selection of stock

Simple and common stock code across BSE and NSE

See your DP holding value real-time

Xpress - simulates a broking terminal experience

Alerts

Choose your own user id - no need to remember tough system

generated usernames

Trading data flowing into Portfolio automatically for easy monitoring

Easy to use payment gateway

Personalized service with online support

IBT terminal to implement strategies like Pair

Easy and quick execution

Basket Trades

After Market Orders

Cross Referencing between strategies and Trade Pages for immediate

execution

Limits and risk


Fungible limits between equity and F&O markets

Sell stocks and get limits for FNO.

Limits against stocks in FNO and equity

Lower margins for Intraday stock future and options

Realized profit is considered as part of limit during the day

Large number of scripts with lower margin for intraday product

Appropriate margin call for containing risk

Leverage products like T+5, Intraday F&O, MTF

Info

Clutter and noise free site

Rich info no need to visit any other site for info

Neatly classified data

Information available on all equity, MF, Commodity, derivatives

Advanced stock screener for equity and MF

Compare price performance of multiple stocks over any time period

Comprehensive stock snapshot page, helps in making decision

Charting tool for technical analysis

Call Centre for dealing and responsive customer service

Minimum clicks for maximum info

Neatly designed WAP site

Access quotes, stock snapshot, world markets in a snap

Access your portfolio and Watch list on mobile - only service to do so

Unique Desktop tool - no other service offers this

Fabulous Desktop tool - access Research and Portfolio offline, anytime,

anywhere

Desktop captures the entire MyEdelweiss section


Customize your view and the way you want to look at stocks through

the MyEdelweiss section

My Edelweiss offers portfolio tracker, research and strategies - fully

customizable

Don’t track research - research tracks you – MyEdelweiss section offers

Research on 1. your stock portfolio 2. Stock you wish to track 3. Type

of research 4. investment horizon

Research

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

clients

Research reports from Edelweiss Research, ranked 4th by Asia Money

for 2008.

Research coverage across 20+ sectors covering 70% of Market Cap.

Consolidated financial statements provided on the companies - only

site to do so. View both consolidated and stand alone results

Macro and Micro economy research reports on regular basis.

Fundamental and Technical analysis to pick the right stock

Peer group comparison based on fundamental and technical analysis.

Unique stock views - bucketing stocks based on qualitative and

quantitative parameters

7 Daily Reports offering a view on cash, F&O, technical and

fundamental view on the overall market

Sectoral research on various sectors on regular basis.

In-depth and incisive Quarterly result analysis on the same day as

results for all stocks covered - with a view on the future

Edelweiss ratios based on factors such as solvency, growth,

profitability

Continuous Market commentary based on events, actions and

announcements.

Regular updates on forthcoming and past IPO's.


Daily reports and updates on commodities, currencies and debt

markets.

Easy and relevant access to Research with links at the right places - no

need to hunt for research on your stocks

Quarterly and Monthly research on Current and Future Environment.

Derivative calls and updates on daily basis.

Live commodity prices and news of all the commodities traded.

Comprehensive commodity coverage - Base metals, bullion, Agro and

Energy

Technical charting based on graphical description, stock movements

and allows analytical interpretations using SMA, EMA, RSI, MACD and

other tools.

Stock screener based on 70 parameters - price, growth, returns and

valuations. Zero in on stocks to meet your criteria in a jiffy

Mutual funds comparison based on peer performance and sectoral

performance.

Detailed updates on Mutual Funds based on performance ,schemes

and offerings.

Track movements in AUM and portfolios - who buying and selling

Daily MF investment activity updates

Intuitive scheme selector to arrive at MF schemes to match your

investment profile and needs

Stay ahead with regular updates on SMS and email - also updated on

web site instantly

Edelweiss Stock Ranks on 200 stocks based on price, value, growth.

Also composite ranking for each stock in coverage universe


Edelweiss presence:


Product Profile

1. Investment Banking

2. Institutional Equities


3. Asset Management

4. Wealth Management

5. Private Client Brokerage

6. Wholesale Financing

7. Client Advisory Services

Investment Banking

Edelweiss Investment Banking business is dedicated to providing corporations,

entrepreneurs and investors, the highest quality independent financial advice and

transaction execution. Its professionals offer a full range of services and transaction


expertise, including private placements of equity, capital raising services in public

markets, mezzanine and convertible debt, mergers and acquisition and restructuring

advisory services. It have a track record of successfully closing more than 100

transactions to date.

Edelweiss focused effort and research-driven approach enable its professionals to be

among the most knowledgeable and best in the business. Their business has been built on

strong relationships, innovation, and uncompromising ethical standards. They aim to

create significant value for entrepreneurs and mature companies by helping them execute

the right capitalization strategy.

Offerings

Private Equity Advisory

Structured Finance Advisory

Mergers and Acquisitions Advisory

Real Estate Advisory

Equity Capital Markets

Infrastructure Advisory

Debt Restructuring Advisory

Institutional Equities

Edelweiss Securities Ltd., a subsidiary of Edelweiss Capital Ltd., is the equities arm of

the Edelweiss Group. The company is a corporate member of both The Bombay Stock

Exchange and The National Stock Exchange of India Limited, providing equity broking

and research services, as well as marketing of equity related products, including

IPOs/FCCBs, to domestic and foreign institutional investors.

Institutional Equities – Insightful Research. Winning Strategies

In their approach lies our difference. In a short span of six years, Edelweiss Capital’s


Institutional Equities Business (IE) has become one of the top five domestic brokerage

houses and top three derivatives desks. They are the only brokerage on the Street with a

quant desk that provides a wide product range, servicing all investor categories. Our

innovative mindset, unparalleled research, agile sales teams, and intensive execution

systems have enabled them to relentlessly service their clients in newer and different

ways.

Edelweiss cater to a wide clientele comprising leading domestic and international

institutional investors, including Pension Funds, Hedge Funds, Mutual Funds, insurance

companies, and banks.

Theme Research

Theme-based fundamental research

What is theme-based research?

Inductive research or connecting the dots across economy-wide trends, thereby

providing a different perspective. Creating a hypothesis of the evolution of trends

over a longer period of time.

Why are themes important?

Themes play out over long periods of time; potential payouts are also over a

longer duration. The breadth of the pay-back is also not restricted to a few

companies, but potentially a number of multi-baggers are created in different

sectors.

Edelweiss have been one of the earliest to cover the private capital markets in

India and profile high growth sectors and companies. Edelweiss' research has

helped in developing an in-depth understanding of these new, high growth areas,

particularly in the Indian context, by analyzing industry dynamics and emerging

trends as well as showcasing some of the exciting private companies in each

sector. Their goal is to find companies in the early stages of significant growth.

Asset Management


Edelweiss Asset Management offers a range of investment products and advisory

services across the risk return spectrum to individual and institutional investors. Their

close focus on client requirements is their inspiration in designing products which offer

the best opportunity for asset growth with a constant focus on risk and preservation of

capital.

Over the past 7 years Edelweiss have significantly strengthened our equity product

offerings to cover the entire gamut of products. It have developed significant expertise in

providing advisory services in the alternative investments space through a deep

knowledge of non traditional asset classes such as derivatives.

Their products are designed to provide their clients with superior performance through

market cycles by virtue of their deep understanding of the equities markets and analytical

approach to risks and return.

Offerings

Portfolio Management

Mutual Funds

Other Products

Bespoke Advice - Discretionary Portfolio Services give you the benefit of investment

advice designed to achieve your financial objectives.

Professional Management - The service provides professional management of equity

portfolios with the objective of delivering consistent long-term performance while

controlling risk.

Continuous Monitoring - We recognize that portfolios need to be constantly monitored

and periodic changes made to optimize the results.


Risk Control - Risk team is responsible for establishing our investment strategy and

providing us real time information to support our portfolio managers.

‘Personal’ Fund Manager – The client’s portfolio is professionally managed by a fund

manager who is easily accessible to the investor unlike in a Mutual Fund in addition to

which we provide a designated Relationship Manager for the client who can offer asset

allocation advisory on your entire portfolio

Superior Returns – Portfolio returns are protected in volatile markets through hedging in

derivatives and short-term capital gains can be set-off against business income for clients

in a PMS as compared to Mutual Fund

Wealth Management

At Edelweiss, Wealth Management is a Practice

It is a specialized profession where experts combine their efforts to meet the wealth

planning, investment, and financial management needs of individuals, families, family

offices, or corporates.

More than just Financial Services

Edelweiss Wealth Management takes one step closer to clients, by providing an "all-in-

one approach”.

Customized Financial Solutions

Advice on asset allocation and thereby creating customized financial solutions for

HNWIs, NRIs, Trusts and Corporates

Wide range of Innovative Advisory services


Edelweiss offer advisory services on Structured Products, Portfolio Management, Mutual

Funds, Insurance, Derivative Strategies, Direct Equity, IPOs, Real Estate Funds and Art

Funds.

Based on Edelweiss holistic investment approach they advise clients, using a mix of asset

classes & innovative products.

Portfolio Management Services

Advise on Portfolio Management Services

Direct Equity

Providing in-house research based advice on select stocks

Structured Products

Products that offer our clients unique risk-reward equations that are customized to their

investment objectives

Mutual Funds

Research based recommendations on Top Picks in Mutual Funds

Insurance

Life & General Insurance Advisory

Real Estate Funds

Advise on Investment in Real Estate through Fund Structure

IPOs

Advising & facilitating financing on select IPOs based on their in-house research

Art Funds

Advise on Investment in Art through Fund Structure


Derivatives Strategies

Advise on Arbitrage Strategies offering superior risk-return characteristics

Advisory Process

Identify lifestyle Goals

Identify and quantify lifestyle goals

Detail current personal & financial situation

Assess Identify Key Issues

Evaluate current financial position

Review wealth creation, retirement estate planning

Review tax structures e.g. individual, family offices & private companies

Analysis & Planning

Assess financial strategy options to meet goals gap analysis

Identify most appropriate investments to match risk profile

Wealth Management Strategy

Tailored financial strategies to achieve stated goals

Detail recommended asset allocation & investments

Wealth creation & estate planning advise to protect wealth

Strategy Presentation & Implementation

Strategies & rationale discussed

Wealth Manager facilitates the implementation of all recommendations

Review


Review progress towards achieving lifestyle goals

Review appropriateness of asset allocation & investments

Review new goals

Private Client Brokerage

The Private Client Services Group at Edelweiss is focused on providing products,

strategies and services to High Net worth Individuals and Corporate Clients. We have

geographic reach through our Branches, Channel Partners & Investment Consultants in

over 19 locations in India. The PCG team has highly trained equity professionals, who

act as your Equity Advisor. Our ESL Equity Advisor proactively helps you take informed

investment decisions and build a healthy portfolio.

Edelweiss draw on its strong presence and industry leadership to develop a portfolio of

offerings designed to serve the spectrum of financial needs.

Edelweiss main objective is to provide clients with all the tools and services they need to

reduce the administrative burdens of managing money and focus on what you do best -

maximizing your trading performance, building your business, and attracting new sources

of capital.

Edelweiss investment philosophy is rooted in the following :

Capital preservation is key - Capital gains follow from a well-thought out

investment strategy.

Invest in stocks with a long term view.

Use a combination of top-down and bottom-up approach to arrive at a basket of

investment worthy stocks


Invest on the basis of fundamental analysis of companies taking into account

market sentiments.

Maintain discipline in booking profits and use index futures to manage short term

volatility.

Wholesale Financing

Edelweiss Financing understands your needs and helps you meet liquidity requirements.

We offer various products and services to individuals and corporates with a close focus

on client requirements while designing our products.

Over a period of time we have been offering short term loans against securities and/or to

buy new securities. We also provide finance for investment in primary market issues. We

help promoters by financing against their share holding to meet their business

requirements, expansion of businesses and for diversification of the lines of business.

We possess expertise in financing short and long term loan facility, risk analysis, transfer

and assessment besides a broad spectrum of services. The company is headquartered in

Mumbai and our network of branches across India enables us to service you across

locations.

Offerings

IPO Financing

Loan against securities

Promoter Funding

ESOP Funding

Client Advisory Services


At Edelweiss Client Advisory Services, our team is driven not just by the quality of our

ideas, but also professional ethics and integrity. We take pride in our philosophy of

offering advice which is in the best interest of our clients. Our emphasis on building long

term relationship ensures that we work closely with our clients empowering them to gain

from market opportunities through our online portal www.edelweiss.in

www.edelweiss.in is a product that offers a unique online investment experience that is

intuitive, information rich and a hassle-free way to trade online. It defines the next level

in online trading technology. It enables intelligent investing with market strategies

custom suited to the client’s investment profile and current portfolio.

Marketing Strategies of Edelweiss


http://www.edelweiss.in/

http://www.edelweiss.in/

Business Advertisements

Asset Management


Institutional Equities


Insurance Broking


Investment Banking


Private Client Services


Wealth Management


DATA COLLECTION

Data collection means collections of information, facts or figures for the problem.

SOURCES OF DATA

Primary Data:

Primary data is the first hand information obtained by investigating. Primary source is

one itself collects the data. Primary data can be collected by observation, by interviews,

by face to face questioning, by using questionnaire, when the needed data do not exist or

are dated, inaccurate, incomplete, or unreliable.

Secondary Data:

Secondary data is collected by others already and the researcher is using that information

for his own research purpose. Secondary data can be collected from published reports,

newspaper, websites, journals, publications of national and international organization.

Primary Data:

1. Questionnaires

2. Personal Interview

CONTACT METHODS:

The respondents were contacted directly (Personal Interviewing). It is the most versatile

method. The interview was of intercept type in which respondents were asked to answer

the questions on the spot. The method is time consuming but it provides better results as

it involves face to face to interaction with the respondent which is missing in case of

telephonic, mail and other methods of interviewing.

Secondary Data :

1. News papers & magazines

2. Research articles


3. Reference Books

4. Websites.

DATA ANALYSIS

Based on what the various respondents’ opinion, the data collected was analyzed using

figures. No rigorous mathematical analysis could be done. All estimations are solely on

judgment. For questions percentage was calculated and represented in the form of charts.

After representing the data in the form of charts the same were interpreted to get in-depth

knowledge about the problem as well as general information, which helped the researcher

to come at appropriate conclusions about the study and to give relevant

recommendations.

FIELD WORK

The survey was conducted for 8 weeks in Gurgaon, NCR. The survey was conducted at

various financial markets like SCF market, Sector-14 market etc.

Data Representation:

To represent the data collected some graphical charts, tables and statistical tools are

used.

RESEARCH TOOLS

Software: Microsoft Excel

Data Analysis and Interpretation


Month-Year

Number of Investor's

Accounts

(In Lacks) Trend Percentage(%)

Jan-00 23.22 100

Jan-01 34.21 147

Jan-02 37.18 160

Jan-03 3.95 163

Jan-04 52.03 224

Jan-05 63.01 271

Jan-06 75.6 326

Jan-07 79.03 340

Jan-08 93.72 403

Jan-09 96.86 417

Jan-10 105.85 456

Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-100

20

40

60

80

100

120

23.22

34.21 37.18

3.95

52.03

63.01

75.679.03

93.72 96.86

105.85


Month-Year

Actual Demat

Quantity(Shares in

Crores)

Trend Demat

Quantity(Shares in

Crores)

Increase or

Decrease

Jan-00 1550 187 1363

Jan-01 3721 2858 863

Jan-02 5167 5530 -363

Jan-03 6876 8201 -1325

Jan-04 8369 10872 -2503

Jan-05 12866 13543 -677

Jan-06 17472 16215 1257

Jan-07 20270 18886 1384

Jan-08 23690 21557 2133

Jan-09 28287 24228 4059

Jan-10 35114 26900 8214

Jan-00

Jan-01

Jan-02

Jan-03

Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

0

5000

10000

15000

20000

25000

30000

35000

40000

15503721

51676876

8369

12866

1747220270

23690

28287

35114

1872858

55308201

1087213543

1621518886

2155724228

26900

Actual Demat Quantity(Shares in Crores)Trend Demat Quantity(Shares in Crores)


Month-Year

Number of Investor's

Accounts Trend Percentage(%)

Jan-00 28545 100

Jan-01 76003 266.2567875

Jan-02 128252 449.2976003

Jan-03 247369 866.5930986

Jan-04 629159 2204

Jan-05 1011397 3543

Jan-06 1861288 6521

Jan-07 2873508 10066.5896

Jan-08 4798222 16809.32563

Jan-09 5527479 19364.08828

Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-090

1000000

2000000

3000000

4000000

5000000

6000000

28545 76003 128252 247369629159

1011397

1861288

2873508

4798222

5527479


Month-Year

Actual Demat

Quantity(Shares in

Crores)

Trend Demat

Quantity(Shares in

Crores)

Increase or

Decrease

Jan-00 57 -286 343

Jan-01 192 178 14

Jan-02 482 642 -160

Jan-03 821 1106 -285

Jan-04 1401 1571 -170

Jan-05 1908 2035 -127

Jan-06 2722 2499 223

Jan-07 3125 2963 162

Jan-08 4982 3422 1560

Jan-09 7081 3891 3190

Jan-00

Jan-01

Jan-02

Jan-03

Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

-2000

0

2000

4000

6000

8000

10000

12000

57 192 482 8211401

19082722

3125

4982

7081

-286178

6421106

1571

2035

24992963

3422

3891

Trend Demat Quantity(Shares in Crores)Actual Demat Quantity(Shares in Crores)


Data analysis of this report depends upon a strong convention that perception of a

individual highly depends upon the awareness of individual towards the topic. Along

with the awareness other things which matters in this topic are Source of Income, Reason

of Investment, Income of an Individual, Age Factor. There are several other factors which

affect an investor’s perception but they all depend upon individual and also for short

term. Hence we are concise to important factors only.

1. Nature of occupation

Objective: To determine the difference of perception due to difference in source of

Income.

Table:

Nature of

Occupation

No. of Respondents

Salaried 42

Self-employed 32

Retired 8

Others 18

Total 100


Graph:

Interpretation:

The study was conducted only on investors who are classified on the basis of the

occupation, respondent among the salaried are 42%, self-employed are 32%, retired are

8% and others are 18%.The possible of the respondent is dominated by salaried followed

by self-employed which may lead to positive impact on Online trading.


2. Objective of Investment

Objective: To determine the difference in perception due to difference in objective of

Investment

Table:

Objective of Investment No. of Respondents

Liquidity 25

Source of income 25

Tax Benefit 15

Capital appreciation 25

Others 10

Total 100

Graph:

Interpretation:

75% people are interested in (25%) liquidity, (25%) source of income and (25%) capital

appreciation. And remaining 25% are interested in (15%) tax benefit, and (10%) others.


3. Knowledge of share market

Objective: Difference in Knowledge of market also play an important role on the

perception of investors, hence it is necessary to know about the investor knowledge about

market. Also to know whether promotional activities are required to improve perceptions

or not.

Table:

Knowledge of share market No. of respondents

Partial 55

Completed 25

Nil 20

Total 100

Graph:

Interpretation:

On that basis, we conclude that 25% people know about the securities investment and

20% people know nothing about the securities investments and 55% people have partial

knowledge about it, so, some promotional activities are required for increasing the

awareness about security market.


Rated in 5 parameters as

1-Highly Aware 2- Aware 3- Neutral 4- Not Aware 5- Highly not aware

Assessment of the customer’s awareness and knowledge about the following details of

the securities and capitals industry. Questionnaire is divided in two parts (i) Awareness

towards Services & (ii) Awareness towards the charges levied by the DP.

1. Awareness about Demat Account

Table:

Rating Parameters No. of Respondents

Highly Aware 15

Aware 70

Neutral 10

Not Aware 5

Highly not aware 0

Graph:

Highly Aware Aware Neutral Not Aware Highly not Aware0

10

20

30

40

50

60

70

15

70

105

0


Interpretation:

From the graph, it is evident that 70 % of the respondents are aware about the demat

account. 15 % are highly aware whereas only 5 % are not aware about the demat account.

2. Procedure of account opening:

Table:


Highly Aware 25

Aware 55

Neutral 10

Not Aware 8

Highly not aware 2

Graph:


10

20

30

40

50

60

25

55

108

2

Interpretation


55 % of the respondents are aware about the procedures of opening demat account, 25 %

are highly aware, hence 75 % are aware about the process. Only 8 % are not aware and 2

% are highly not aware, hence 10 % are not aware about the process.

3. International Securities Identification Number:

Table:


Highly Aware 0

Aware 5

Neutral 10

Not Aware 45

Highly not aware 40

Graph:


5

10

15

20

25

30

35

40

45

0

5

10

45

40

Interpretation:


Only 5 % of the respondents are aware about the International Securities Identification

number.45 % are not aware and 40 % are highly not aware, hence 85 % have no

awareness related to this subject.

4. Mode of receiving corporate benefits

Table:


Highly Aware 15

Aware 30

Neutral 20

Not Aware 20

Highly not aware 15

Graph:


5

10

15

20

25

30

15

30

20 20

15

Interpretation:


30 % of the respondents are aware and 15 % are highly aware about the corporate

benefits. 20 % of the respondents are neutral and not aware about the benefits.

5. Transaction Statement

Table:


Highly Aware 10

Aware 40

Neutral 30

Not Aware 15

Highly not aware 5

Graph:


5

10

15

20

25

30

35

40

10

40

30

15

5


Interpretation:

40 % of the respondents are aware about the transaction statement, 30 % are neutral,

whereas only 10 % are highly aware about the transaction statement.

6. Nomination

Table:


Highly Aware 20

Aware 43

Neutral 14

Not Aware 18

Highly not aware 5

Graph:


5

10

15

20

25

30

35

40

45

20

43

14

18

5

Interpretation:


43 % of the respondents are aware about the nominations, 20 % are highly aware and 5 %

of the respondents are highly not aware about the subject.

7. Transmission of Demat securities

Table:


Highly Aware 3

Aware 16

Neutral 25

Not Aware 26

Highly not aware 30

Graph:


5

10

15

20

25

30

3

16

2526

30


Interpretation

30 % of the respondents are highly not aware and 26 % of the respondents are not

aware about the subject. Only 16 % are aware about the transmission of demat

securities and 3 % are highly aware.

8. Rematerialization of Demat securities

Table


Highly Aware 3

Aware 24

Neutral 31

Not Aware 23

Highly not aware 19

Graph


5

10

15

20

25

30

35

3

24

31

23

19

Interpretation


24 % of the respondents are aware about the rematerialization of the demat securities.

31 % have neutral view and 23 % are not aware about the subject.

9. Lending & Borrowing of Demat securities

Table


Highly Aware 0

Aware 7

Neutral 36

Not Aware 27

Highly not aware 30

Graph


5

10

15

20

25

30

35

40

0

7

36

27

30

Interpretation


Only 7 % of the respondents are aware about the lending and borrowing of demat

securities whereas 27 % are not aware and 30 % respondents are not highly aware

about the subjects.

10. Freezing of Demat Account

Table


Highly Aware 11

Aware 24

Neutral 30

Not Aware 23

Highly not aware 12

Graph


5

10

15

20

25

30

11

24

30

23

12

Interpretation


24 % of the respondents are aware of the freezing of the demat account, 11 % are

highly aware. On the other hand, 23 % are not aware and 12 % are not highly aware

about the subject.

11. Reduction in paper work

Table


Highly Aware 27

Aware 38

Neutral 20

Not Aware 9

Highly not aware 6

Graph


5

10

15

20

25

30

35

40

27

38

20

9

6

Interpretation


38% of the respondents are aware about the reduction in paper work due to

dematerialization of shares, 27% are highly aware hence it can be said that this process

have a high awareness.

Only 9% of the respondents are not aware and 6% are not highly aware of the subject.

12. Quick Transfer of ownership

Table:


Highly Aware 22

Aware 33

Neutral 22

Not Aware 16

Highly not aware 7

Graph:


5

10

15

20

25

30

35

22

33

22

16

7

Interpretation:


33% of the respondents are aware about the quick transfer of ownership of shares due

to dematerialization of shares, 22% of respondents are highly aware whereas 16% of

respondents are not aware and 7% are highly not aware.

13. Reduction in Brokerage

Table:


Highly Aware 10

Aware 37

Neutral 21

Not Aware 19

Highly not aware 13

Graph:


5

10

15

20

25

30

35

40

10

37

2119

13


Interpretation:

It is evident from the graph that 37% of the respondents are aware about the reduction

in brokerage but only 10% are highly aware about the subject. On the other hand 19%

of the respondents are not aware and 13% are Highly not aware about the subject.

14. Elimination of Bad deliveries

Table


Highly Aware 6

Aware 42

Neutral 20

Not Aware 18

Highly not aware 14

Graph


5

10

15

20

25

30

35

40

10

37

2119

13

Interpretation:


It is evident from the graph that 37% of the respondents are aware about elimination of

Bad deliveries, but only 10% are highly aware about the subject on the other hand

19% of the respondents are ot aware and 13% are not highly not aware about the

subject.

15. Faster Settlement Cycle

Table


Highly Aware 12

Aware 53

Neutral 21

Not Aware 11

Highly not aware 3

Graph



10

20

30

40

50

60

12

53

21

11

3

Interpretation:

More than half of the respondents i.e. 53% are aware about the faster settlement cycle,

12% are highly aware and only 11% are not aware about the subject.

16. No Courier/postal charges

Table


Highly Aware 16

Aware 20

Neutral 25

Not Aware 24

Highly not aware 15

Graph



5

10

15

20

25

16

20

2524

15

Interpretation

20% of the respondents are aware about the absence of postal/courier charges , 16%

are highly aware of the subject. Where is 24% of the respondents are unaware about

the absence of courier charges.

17. Low transaction cost

Table


Highly Aware 10

Aware 15

Neutral 15

Not Aware 20

Highly not aware 40


Graph


5

10

15

20

25

30

35

40

10

15 15

20

40

Interpretation:

Only 15% of the respondents are aware about the reduction in transaction cost whereas

40% are highly not aware about the subject, hence awareness should be created among

the customers regarding the subject.

18. No Stamp duty

Table


Highly Aware 5

Aware 35

Neutral 20

Not Aware 15

Highly not aware 25


Graph


5

10

15

20

25

30

35

5

35

20

15

25

Interpretation

From the graph it is evident that 35% of the respondents are aware about the absence

of stamp duty but as much as 25% are highly not aware about the subject, Hence

awareness should be created regarding subject.

19. Electronic credit of shares

Table


Highly Aware 5

Aware 32

Neutral 10

Not Aware 15

Highly not aware 38


Graph


5

10

15

20

25

30

35

40

5

32

10

15

38

Interpretation

It is evident from the graph that 38 % of the respondents are highly not aware about

electronic credit of shares , 32% are aware about the subject, Hence awareness should

be created regarding the subject.

20. No odd lot problem

Table


Highly Aware 13

Aware 20

Neutral 27

Not Aware 22

Highly not aware 18


Graph


5

10

15

20

25

30

13

20

27

22

18

Interpretation

Only 20% of the respondents are aware about the elimination of odd lot problem, 13%

are highly aware but 22% are not aware about the subject.

21. Faster distribution of benefits

Table


Highly Aware 16

Aware 23

Neutral 22

Not Aware 21

Highly not aware 18


Graph


5

10

15

20

25

16

2322

21

18

Interpretation

23% of the respondents are aware about the faster distribution of benefits but 21% are

not aware and 18% are not highly aware about the subject.

22. Saves transaction time

Table


Highly Aware 25

Aware 35

Neutral 20

Not Aware 18

Highly not aware 2


Graph


5

10

15

20

25

30

35

25

35

2018

2

Interpretation

35% of the respondents are aware about the reduction in transaction time due to

dematerialization of shares, 25% are highly aware but only 18% are not aware about

the subject.

23. Periodic Status report

Table


Highly Aware 11

Aware 21

Neutral 12

Not Aware 29

Highly not aware 27


Graph


5

10

15

20

25

30

11

21

12

2927

Interpretation

29% of the respondents are not aware about the periodic transaction reports and 27%

are not highly aware about the subject. On the other hand only 21% are aware about

the subject.

Respondents opinion about the different charges levies by depository participants

24. Account Opening charges

Table


High 48

Medium 39

Low 13

Graph


48%

39%

13%

HighMediumLow

Interpretation

48% of the respondents think that the account opening charges are high. 39% think

that it is moderate whereas only 13% feel that its is low.

25. Annual Maintenance charges

Table


High 19

Medium 29

Low 52

Graph


19%

29%

52% HighMediumLow

Interpretation

52% of the respondents think that the annual maintenance charges are low but only

19% think that it is high.

26. Custodian Charges

Table


High 22

Medium 57

Low 25

Graph


21%

55%

24%

HighMediumLow

Interpretation

55% of the respondents think that custodian charges are moderate whereas 24% of the

respondents think it is low but 21% think it is high.

27. Transaction charges

Table


High 25

Medium 46

Low 29


Graph

25%

46%

29%

HighMediumLow

Interpretation

46% of the respondents think transection charges are moderate where as 29% and 25%

of respondents think its low and high respectively.

28. Market/Off market Charges

Table


High 25

Medium 36


Low 39

Graph

25%

36%

39%

HighMediumLow

Interpretation

39% of the respondents think the Market/off Market charges are low 36% think its

moderate whereas 25% think its high.

29. Pledge/Hypothecation charges

Table


High 50

Medium 24

Low 26


Graph

50%

24%

26%

HighMediumLow

Interpretation

50% of the respondents think that Pledge/Hypothecation charges are high, whereas 26%

and 24% think low and moderate respectively.

30. Dematerialization Charges

Table


High 28

Medium 44

Low 28


Graph

28%

44%

28%

HighMediumLow

Interpretation

44% of respondent think that dematerialization charges are moderate while 28% think

its low but 28% of the respondents feel it to be high.

31. Satisfaction Level Of Investors towards Demat Account

Table


Highly Satisfied 21


Satisfied 35

Neutral 19

Dissatisfied 16

Highly Dissatisfied 9

Graph

Highly Satisfied Satisfied Neutral Dissatsfied Highly Dissatisfied0

5

10

15

20

25

30

35

21

35

19

16

9

Interpretation

35% of the respondents are satisfied by the dematerialization of shares , 21% are highly

satisfied whereas 16% are dissatisfied and 9% are highly dissatisfied.


Suggestions & Recommendations

Suggestions for the Study:

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

intervals without any delays after the transaction takes place. The depository


participants should also inform the investors about their day to day trading

activities and their account balance

Depository Participants should send pamphlets and magazines containing

information about the latest changes in the demat segment to their client. When

there are any new facilities offered by the depositories to the investors, it should

be properly intimated to investors. Depository participant are also advised to

conduct a number of investors awareness programs and advertise their offer of

services in various newspapers and popular magazines.

The investors can put their complaints to their depository participants and in case

of failure of depository participants to resolve the complaints, then the investor

can write to the Investor Grievance cell of NSDL or CDSL.

NSDL and CDSL are asked to create a Net Forum/E-Forum in order to exchange

their market information regularly between the investors and depository or

investors and depository participants or depository Participant and depository.

Depository Participants can make it a regular practice to organize frequent

meetings for their investors so as to strengthen their relationship with the existing

investors. This would definitely give an opportunity for the DPs to take note of

grievances if any and offer prompt settlement of issues.

In order to retain the investors, the depository participants should offer their

services promptly and kindly, In addition to this, Depository Participants can also

select one long time investor year by year and provide them with Gifts.

Conclusion


Now a days, share markets occupy a key role both in the development of economy and

individual investors in their business, The Indian capital market had thus witnessed

numerous changes in the recent years, and one such change is Dematerialization.

Dematerialization of securities play a vital role in improving and modernizing the capital

market and enhance the levels of investor's perception measures which aim at eliminating

the bad deliveries and forgery of shares. Thus, the study shows a clear picture on the

progress of investor's accounts and dematerialization of shares in NSDL and CDSL

and the Investor's perception towards Dematerialization of Shares.


Bibliography


National Electronic Settlement and Transfer (NEST UPDATE), April2000.




CDSL Annual Report 1999-00.






Paperless trading- A Financial Express Guide, January 2007.

Investor's Guide to Depository- NSDL Publications.

Handbook for NSDL Depository Operations Module- NSDL Publication, November 2005.

National Securities Depository Ltd. , "Demat Simplified-A guide", NSDL, Mumbai,1999.

A Quick Reference Guide for Investors - Security and Exchange Board Of India.

WWW.nsdl.co.in.

www.cdslindia.com.


www.edelcap.com.


Questionnaire


Instruction: Please use the following divisions for answering the questions:

1- Highly Aware 2- Aware 3- Neutral 4- Not Aware 5- Highly not aware

Do you know about the-

1).De Mat Account: 1. 2. 3. 4. 5.

2).Procedure of account opening:

1. 2. 3. 4. 5.

3).International Securities Identification Number:

1. 2. 3. 4. 5.

4).Mode of receiving corporate benefits:

1. 2. 3. 4. 5.

5).Transaction Statement

1. 2. 3. 4. 5.

6).Nomination

1. 2. 3. 4. 5.

7).Transmission of Demat Securities:

1. 2. 3. 4. 5.

8).Rematerialization of Demat Securities:

1. 2. 3. 4. 5.

9).Lending & Borrowing of Demat securities:

1. 2. 3. 4. 5.

10).Freezing of Demat Account:


1. 2. 3. 4. 5.

11).Reduction in Paper work

1. 2. 3. 4. 5.

12).Quick Transfer of ownership

1. 2. 3. 4. 5.

13).Reduction in Brokerage

1. 2. 3. 4. 5.

14).Elimination of Bad deliveries

1. 2. 3. 4. 5.

15).Faster settlement Cycle

1. 2. 3. 4. 5.

16).No courier/Postal charges1. 2. 3. 4. 5.

17).Low transaction cost

1. 2. 3. 4. 5.

18).No stamp Duty

1. 2. 3. 4. 5.

19).Electronic credit of shares

1. 2. 3. 4. 5.

20).No odd lot problem


1. 2. 3. 4. 5.

21).Faster disbursement of benefits

1. 2. 3. 4. 5.

22).Saves transaction time

1. 2. 3. 4. 5.

23).Periodic status report

1. 2. 3. 4. 5.

Are you aware about the different charges levies by depository participants?

If yes then what is your opinion about these charges:

24).Account opening charges

1. 2. 3.

25).Annual maintenance charges

1. 2. 3.

26).Custodian Charges

1. 2. 3.

27).Transaction charges

1. 2. 3.

28).Market/off market charges

1. 2. 3.

29).Pledge/Hypothecation Charges

1. 2. 3.

30).Dematerialization Charges

1. 2. 3.

31).Satisfaction level of investors towards Demat Account:


Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

Personal Details :

Name: _______________________________________________________________________

Gender: Male/Female Marital Status: Married/Single

Occupation: Salaried Self Employed Student Retired Others

Income: < Rs.10, 000, Rs.10,000 – Rs. 20,000, Rs. 20,000- Rs. 50,000 Above 50,000

Address: _____________________________________________________________________

Phone No: ____________________________________________________________________


study on progress and investor's perception towerds dematerialization of shares

Documents