sushant's summer project report (1)

8/8/2019 sushant's summer project report (1)

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A PROJECT REPORT

ON

STUDY ON DEMAT A/C

&

DEMAT A/C OPEARTION PROCEDURE

BY

K.SUSHANT

SIKKIM MANIPAL UNIVERSITY(DE)

2008-10


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This is to certify that Mr. K.Sushant(Roll No. 520830352)has successfully

completed his Summer Project titled A study on DMAT A/c & DMAT A/c Operation Procedure

from 11th May,2009 to 11th July,2009 in partial

fulfilment of the requirements of the

SMU(MBA)

2008-10 Course.


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Preface

For any management course, summer training is essential and important part of curriculum of MBA

degree. It is an exposure to corporate environment and help MBA aspirants to get acquainted with

organizational norms, procedures and practices, ethics & culture. It also gives an insight of actual

functioning of the organization. It helps the student to understand and to correlate with theoretical

aspect with practical reality.

It was the great experience to work with Religare Securities Ltd. During my summer project which has

helped me to improve my communication and interpersonal skills and also give me the better

understanding if the subject Demat Account.


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Acknowledgement

I am grateful to make this report under my summer project for duration of two months in course of

Master In e-Business Administration. I have done my project work in Religare Securities Ltd. At

Aundh-Pune.

I would like to express my gratitude toward Religare company for giving me this opportunity to

work on a project at one of the prestigious and professional organization.

I would like to thank all the people who directly or indirectly helped me during my summer project

and helped me in making this report. Mr. Avinash Kumar Singh, Branch Manager, Religare :- He has

given me valuable information about stock market and depositories. Mr. Prem Prakash Trivedi,

Relationship Manager, Religare :- He helped me in my marketing research and other part of project.

At last, I would thank to all my colleagues in Religare, College who has helped in making this report.


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Synopsis

According to the curriculum of management study, I was required to do my project for two months in

any company to get practical knowledge what I had learnt theoretically and also to know the corporate

world. My area of interest is stock market, so I had taken my summer internship in Religare Securities

Ltd., which is a stock broking company.

Stock market is a face of any economy. Status of stock market shows the condition economy. Indian

stock market is very hot and preferred destination for the investors. In my point of view, this area is

critical area to study because it deals with finance that is blood of economy.

In stock exchange a lot of trading takes place. Share ownership has to transfer from sellers demat

account to buyers demat account. In this process depository plays an important role. I have selected

Depository as my summer project topic. Depository is an organization which facilitates deposit of

securities. I have covered most part of depository i.e. rule, regulation and working of depository. I

have covered about depository participant and different aspect of demat account.

This report is concentrated on demat account and its operation. What are procedure and documents

required to open a demat account. It will give information on depository function and their operation. I

have done research on demat account.

This report give you information about Religare Securities Ltd. Services offered by Religare and their

fees for services and comparison with another broking companies.


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Contents Page No

Chapter1.INDUSTRY PROFILE . 8-12

y Indian stock brokingindustry . 9

y Merge between brokers 10

y Non banking financialinstitution . 10

y Non banking financial companies 11

Chapter2.COMPANY PROFILE . 13-24

y Vision and Mission . 14

y

Retail spectrum 15

y Wealth Management 19

y Protfolio Management.. 20

Chapter 3.BUSINESS DIVISIONS - RELIGARE .. 25-36

y Mutual Fund ...... 26

y Life Insurance 26

y Private Equity fund .. 27


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Chapter 4.PROJECT :

PROCEDURE OF DEMAT ACCOUNT .. 37-63

y Stock Market Business -what and how? 40

y Risks involved in Stock Markets 44

y Documents required for Demat Account . 47

y Dematerialization 52

y Findings .. 63

y Suggestions . 63

Chapter 5. CONCLUSION .. 65

QUESTIONNAIRE. 66

GLOSSARY 67

BIBLIOGRAPHY .. 6


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Chapter-1


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1.INDUSTRY PROFILE

INDIAN STOCKBROKING INDUSTRY

The financial services sector today is characterized by globalization, consolidation and

convergence. In this scenario, technology is a major driving force for achieving competitive advantage

through cost reductions and creations of new business opportunities. Technology is creating more

efficient enterprises, enabling new ways of reaching customers through new delivery channels and

smoothly links once-disparate business practices. Changing international scenario in the stock broking

industry, and its likely effects on the Indian stock broking industry.

Over the last several decades, the decline in the trade barriers resulting from the GATT

agreements, the emergence of large trading blocks such as the European Union (EU), NAFTA,

ASEAN, etc and substantial reduction in transporting costs have significantly altered the international

competitive environment. The securities markets worldwide have gone through a dramatic structural

change, reflecting the above trend. Now, economics are not only affected by domestic changes but

also the changes taking place all over the world either directly or indirectly. Changes in the major

markets around the world, either causes changes in other securities markets directly or gives a cue to

the other markets of the changes to come in the near future.

Indian markets are slowly coming in line with the international markets, due to the efforts of

SEBI and individual exchanges. The starting of rolling settlement, internet trading, increasing circuit

filters, huge increase in volumes are all signs of the Indian market coming in line with the more

developed markets such as those of the US, UK, Japan, Germany and many of the Asian giants.


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So it is important that Indian brokers also keep in tune with and take signals from the international

markets because thats the only way they can brace themselves for the future.

Here are some of the more recent and more important changes that may give an indication of

the times to come in the Indian market.

Mergers between brokers: with stock exchanges, banks and firms at it, i.e. merging to form bigger

and better corporations can the stock broking industry cannot be far behind.

Malaysian securities commission, for instance, has ordered the 63-stockbroking firms in

Malaysia to merge into 15 or fewer firms. The commission has given the firms till yearend to merge,

with each merged entity to be formed by at least 4 brokerage firms. Those who fail to do so will not

have their licenses renewed. The merged entities will be called "Universal brokers". The universal

brokers must have a share capital of $250 million and capital adequacy ratio of 1.5 times. Starting

2002 they will be able to open branches through out the country. These steps are designed to make

Malaysia ready for foreign competition. As the name suggests, universal brokers, are aimed at

making the Malaysian firms truly global. This change has a serious impact on the brokers of any

developing market like India where the brokerage houses are small and fragmented. With international

competition coming in, and infrastructure requirements increasing, mergers could be the only way to

survive and thrive in the future.

Non-Banking Financial Institution:

Non banking Financial Institutions carry out financing activities but their resources are

not directly obtained from the savers as debt. Instead, these Institutions mobilize the public savings for

rendering other financial services including investment. All such Institutions are financialintermediaries and when they are known as Non-Banking Financial Intermediaries (NBFCs) or

Investment Institutions.


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y UNIT TRUST OF INDIA

y

LIFE INSURANCE CORPORATION (LIC)

y GENERAL INSURANCE CORPORATION(GIC)

Apart from these NBFCs, another part of Indian financial system consists of a large number of

privately owned, decentralized, and relatively small-sized financial intermediaries. Most work in

different, miniscule niches and make the market more broad-based and competitive. While some of

them restrict themselves to fund-based business, many others provide financial services of various

types. The entities of the former type are termed as Non-Banking Financial Companies (NBFCs).

The latter type are called Non-Bank financial services Companies (NBFCs).

Post 1996, Reserve Bank Of India has set in place additional regulatory and supervisory

measure that demand more financial discipline and transparency of decision making on the part of

NBFCs. NBFCs regulations are being reviewed by the RBI from time to time keeping in view the

emerging situations. Further, one can expect that some areas of co-operation between the Banks and

NBFCs may emerge in the coming era of E-commerce and Internet banking.

The Task Force on NBFCs appointed by the Government of India submitted its report inOctober, 1998, which recommended rationalization of regulations for, NBFCs, improvement of the

legislative framework for protecting the interests of depositors and development of NBFCs on sound

and healthy lines On January 2, 1998 the RBI issued detailed guidelines regarding norms of deposit

acceptance, prudential norms, etc. for various categories of the NBFCs. These were later reconsidered

and revised guidelines were issued on January 31, 1998; deposit entitlement limits were raised in

certain cases to minimize hardship without endangering the interests of depositors.

According to these guidelines an NBFC will have to obtain the minimum prescribed investmentrating before accepting public deposits. The limit of acceptance of public deposits has been linked to

the NOF of NBFCs and its rating. While equipment leasing companies having NOF of Rs.25.00 lakh


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and above and having a credit rating of AAA, AA, A and A- can accept public deposits up to 4 times,

2.5 times, 1.5 times and 0.5 times respectively, of their NOF, a loan company having NOF of Rs.25lakh and above having credit rating of AAA, AA, A will be allowed to accept deposit from public up

to 2 times, 1 time and 0.5 time, respectively of NOF. Furthermore, NBFCs with NOF of less than Rs.

25 lakh have been prohibited from accepting public deposits with immediate effect.

Non-bank financial companies (NBFCs) also known as a non-bank or a non-bank bank, are

financial institutions that provide banking services without meeting the legal definition of a bank, i.e.

one that does not hold a banking license. Operations are, regardless of this, still exercised under bank

regulation. However this depends on the jurisdiction, as in some jurisdictions, such as New Zealand,

any company can do the business of banking, and there no banking licenses issued.

Non-bank institutions frequently acts as suppliers of loans and credit facilities,

however they are typically not allowed to take deposits from the general public and have to find other

means of funding their operations such as issuing debt instruments. In India, most NBFCs raise

capital through chit Funds.

Activities of NBFCs:

y Mutual Funds

y Consumer loan/Credit Card

y Insurance

y

Leasing

y Hire purchase


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y Factoring

y Credit Rating

y Securitization

y Venture capital

y Stock Broking

y Primary Leadership


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Chapter-2


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COMPANY PROFILE:

Religare is a diversified financial services group of India offering a multitude of investment options.

The diverse bouquet of financial services which Religare offers can be broadly clubbed across three

key verticals - Retail, Institutional and Wealth spectrums. The services extend from asset anagement,

Life Insurance, wealth management to equity broking, commodity broking, investment banking,

lending services, private equity and venture capital. Religare has also ventured into the alternative

investments sphere through its holistic arts initiative and Film fund. With a view to expand, diversify

and introduce offerings benchmarked against global best practices, Religare operates in the life

insurance space under 'Aegon Religare Life Insurance Company Limited and wealth management

under the brand name 'Religare Macquarie Private Wealth'.

Religare has a pan India presence, 1837* locations across 498* cities and towns. It also currently

operates from nine international locations following its acquisition of London's brokerage &

investment firm, Hichens, Harrison & Co. plc. (Now Religare Hichens, Harrison Plc).

The vision is to build Religare as a globally trusted brand in the financial services domain and present

it as the 'Investment Gateway of India'.


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Vision & Mission

Vision - To build Religare as a globally trusted brand in the financial services domain and present it as

the Investment Gateway of India'.

Mission- Providing complete financial care driven by the core values of diligence and transparency.

Brand Essence - Core brand essence is Diligence and Religare is driven by ethical and dynamic

processes for wealth creation.

Group Sructure

Religare Securities Limited

Equity Broking

Online Investment Portal

Portfolio Management Services

Depository Services

Religare Commodities Limited

Commodity Broking

Religare Capital Markets Limited

Investment Banking

Proposed Institutional Broking

Religare Realty Limited

In house Real Estate Management Company

Religare Finvest Limited

Lending and Distribution business

Proposed Custodial business

Religare Insurance Broking Limited

Life Insurance

General Insurance

Reinsurance

Religare Arts Initiative Limited

Business of Art

Gallery launched - arts-i

Religare Venture Capital Limited

Private Equity and Investment Manager


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Religare Hichens Harrison**

Corporate Broking

Institutional Broking

Derivatives Sales

Retail Spectrum

EQUITY TRADING - Trading in Equities with Religare truly empowers you for your investmentneeds. We ensure you have a superlative trading experience through -

y A highly process driven, diligent approach

y Powerful Research & Analytics and

y One of the "best-in-class" dealing rooms

Further, Religare also has one of the largest retail networks, with its presence in 1837* locations

across 498* cities & towns. This means, you can walk into any of these branches and connect to our

highly skilled and dedicated relationship managers to get the best services.

The Religare Edge

y Pan India footprint

y Powerful research and analytics supported by a pool of highly skilled research analysts

y Ethical business practices

y

Offline/Online delivery modelsy Single window for all investments needs through you unique Customer Relationship Number


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Commodity Trading- Religare Commodities Limited (RCL), a wholly owned subsidiary of

Religare Enterprises Limited was initiated to spearhead Exchange based Commodity Trading. As amember of NCDEX, MCX and NMCE, RCL, present in 529 locations provides options in both agri

and non-agri commodities for Exchange based commodity trading backed by incisive dedicated

research.

RCL also provides

y Dedicated Corporate Desk - The Corporate Desk educates the producers and consumers about

the available opportunities and the benefits of hedging. We already have more than 100

corporate clients registered with us.

y Dedicated Arbitrage Desk - The concept of Commodity Spot-Futures Arbitrage is based on the

price discrepancies of a particular commodity in two different markets. One needs to take

delivery of the commodity from one market (Spot/Mandis) and then deliver it to the other

market (Futures market) as and when the prices are sufficiently less in Spot compared to the

Futures platform. Religare Arbitrage Desk has its eye every second on the movement of the

different markets. As soon as the Desk notices any opportunity, we disseminate the same

suitably to capitalize.

y Nationwide presence in Mandi Locations - Aims at getting the actual producer (farmer)

directly to the market by taking the market to him and enables him to hedge his risk. Religare's

presence in all the Mandis is helping give practical solutions and platforms to manage price-

risk. Presently, Religare has more than 50 operational Mandi branches (essentially in market

areas) across India and going forward it looks at expanding this presence aggressively.

The Religare Edge

y Pan India footprint



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y Nationwide presence including Mandi Locations for in-depth and firsthand information

y

Offline/Online delivery modelsy Powerful research and analytics supported by a pool of highly skilled research analysts

y Single window for all investments needs through you unique Customer Relationship Number.

Online Investment Portal - Religare Online is your single gateway for all your financialneeds. Now

you not just trade online inEquities, Commodities, apply for IPOs, invest in Mutual Funds, buy

Insurance, but also get Trade Rewards each time you invest online with our 360 degree portal

www.religareonline.com.

With us you also enjoy a host of other revolutionary features such as Zero percent brokerage, Interest

on cash margin, exposure up to 20 times on your cash margin, etc. on our select product schemes

available through our highly sophisticated and customized platform

R-ACE (Religare Advanced Client Engine).

So get empowered, enrich your experience of investing online and open yourself to a whole new world

of possibilities for Religare Online will become Your World Online, beyond investments!

Insurance Solutions- Religare with one of the largest retail networks in the country offers a complete

range of insurance solutions though its 100% subsidiary company, Religare Insurance Broking

Limited (RIBL). The company holds a composite broker's license operating in the Life, General and

Reinsurance domains.

An insurance portfolio is designed from a choice of more than 3000 life and general insurance

products & plans from more than 30 companies. This one easy window for any brand of insurance,

any kind of cover, offers tailor made insurance solutions with not just the right kind of cover but also

the right of cover.


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Offerings include:

y Life Insurance

o Pure Insurance Solutions

o Investment Linked Plans

o Guaranteed Saving Plans

y General Insurance

o Motor Insurance

o Health Insurance Program

o Travel Protection Schemes

o Package Policies for SMEs

Loans- Structurally all business are operated through various subsidiaries held through the holding

company Religare Enterprises Limited. One such wholly owned subsidiary of REL is Religare Finvest

Limited registered with the Reserve Bank of India as a Non-Banking Finance Company (NBFC) and is

a Member of CDSL.

Religare Finvest Limited offers loans for all your needs.

Commercial Vehicle Loans - Transportation is an essential part of any business and its growth, hence

now with Religare Consumer Finance you can avail Commercial Vehicle loans for both new and used

three-wheeler, multi utility vehicle, light and heavy commercial vehicles and high end cranes which

includes LCV's, Tractor Trailers, Buses etc.

Construction Equipment finance - India is growing at a fast pace, to develop it's infrastructure with

the same pace Religare Consumer Finance offers loans for purchase of new and used Construction

Equipments and all earth moving machinery which includes JCB, Excavators, Backhoe/wheel Loadersetc.


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Loan Against Property - You may be a Manufacturer, a Wholesaler, a Retailer, or an Exporter /

Importer or a Self Employed Professional; Religare Consumer Finance offers the best and hassle freeway to en-cash the value of your Residential or Commercial property to finance your personal or

business requirements.

The Religare Edge

y Tailor made solutions to meet your requirement

y Quick & hassle free services

y Easy documentation

y Competitive rates of Interest

Wealth Management-

Religare operates its wealth management business in partnership with Macquarie

through the joint venture - Religare Macquarie Wealth Management Limited (a 50:50 joint venture).

The JV is a combination of strengths - Macquarie's strong global expertise with Religare's strong local

insights.

The new brand - Religare Macquarie Private Wealth shall strive to manage, grow and preserve thewealth of discerning Indian HNIs.


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Religare Macquarie Private Wealth draws strength and its core essence from the values of

Religare's "Diligence" and Macquarie's "Forward Thinking".

Portfolio management services

Religare offers PMS to address varying investment preferences. As a focused service, PMS pays

attention to details, and portfolios are customized to suit the unique requirements of investors.

Religare PMS currently extends six portfolio management schemes, viz Monarque, Panther, Tortoise,

Elephant, Caterpillar and Leo. Each scheme is designed keeping in mind the varying tastes, objectives

and risk tolerance of our investors.

Our Schemes

Monarque

The portfolio aims at the ultra HNI category and is structured to provide higher returns by taking

aggressive positions across sectors and market capitalizations.

Panther

The Panther is suitable for the "High Risk High Return" investor with a strategy to invest across

sectors.

Tortoise

The Tortoise is suitable for the "Medium Risk Medium Return" investor with a strategy to invest in

companies which have consistency in earnings, growth and financial performance.


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Elephant

The is suitable for the "Low Risk Low Return" investor with a strategy to invest in blue chip

companies, as these companies have steady performance and reduce liquidity risk in the market.

Caterpillar

The Caterpillar is suitable for investors with a high risk appetite.

The Religare Edge

We serve you with a diligent, transparent & process driven approach and ensure that your money gets

the care it deserves.

y No experts, only expertise.

y No hidden profits.

y Daily disclosures.

y No charge till you profit*.

* Except fixed administrative charges.

Institutional Broking Services

With the mission to institutionalize and implement a process driven approach, the Institutional

Broking Services at Religare cater to the investment needs of leading corporate houses and

institutions. Backed by incisive research, this division would like to be seen as a one stop investment

gateway and knowledge repository for its clients, servicing their unique and sophisticated needs.

Our Institutional Broking desk is currently dealing with almost all the leading client groups, like

Mutual Funds, FIIs, Banks and Insurance Companies.


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The Religare Edge:

y Highly skilled, dedicated dealing, research and sales teams

y Dealing capabilities on the NSE, BSE and in the cash and derivatives segment

y In-depth, detailed and insightful coverage across 16 diverse sectors and 153 companies that

extends to

o Economic Research

o Result Expectations

o Derivative Strategies

o IPO Researcho Mutual Fund Research

o Special reports like impact of credit policy, budget, etc.

y The sectors covered are FMCG, Hotels, Media, Pharma, Auto, Cement, Steel pipes, Logistics,

Telecom, Construction and much more

y Access to international expertise and global practices established in mature financial markets.

Investment Banking

Our Investment Banking business offered through Religare Capital Markets Limited (RCML), a

wholly owned subsidiary of the holding company, Religare Enterprises Limited, deals in merchant

banking, transaction advisory and corporate finance servicing the Corporate, Entrepreneurs and

Investors.

Supported by a dynamic team of professionals with proven track record, our Investment Banking

division is backed by in-depth understanding of the regulatory systems. With our expertise, we create

customized capital structures that are aligned to the customers, business plan and stakeholder

objectives.


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Through its diligent processes in Investment Banking, Religare wishes to partner with the midcaps, be

it for Transaction Advisory services, Private Equity placements, Debt Syndication or even entering thePrimary Market, ECB, FCCB, GDR/ADR, etc. Religare's Investment Banking is a one-stop shop for

all these services.

At Religare, our constant endeavour is to forge strong relationships and our innovation and

uncompromising ethical standards that have enabled us to develop global distribution & execution

capabilities.

The Religare Edge

y Excellent track record in deal closing and capital raising

y End-to-End solution delivery capability and in-depth understanding of the regulatory systems.

y Global presence with offices operating in nine countries besides India.

y Pan India presence in 1550 locations across more than 460 cities & towns.

y Powerful research and analytics supported by a pool of highly skilled Research Analysts


y

Part of a large diversified Indian trans-national promoter group.

Insurance Advisory

Religare Insurance Broking Limited (RIBL), a Religare Enterprises Limited venture is one of India's

leading insurance broking firms, with one of the largest retail networks in the country. The company

holds a composite broker's license operating in the Life, General and Reinsurance domains.

RIBL not only provides customized solutions to individual clients but also to some of the leading

corporate houses and institutions across the country.


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Our team across the country is driven by the core philosophy of creating and delivering value to its

customers. Our strengths are a team of passionate professionals, a robust IT infrastructure and strongrisk analysis teams adept at identifying & analyzing your risks and providing you with tailor made

solutions.

Value Proposition

Presence Pan India foot print

Strong Domain Expertise Rich domain knowledge and Industry experts

Comprehensive Risk Portfolio

Management

Expertise to meet all your Insurance needs

Flexibility Market understanding, proactive and customer centric

Stability Part of a large diversified Indian trans-national group with

presence in over 1550 locations across more than 460

cities & towns in India and globally across 10 countries.

Infrastructure Human, technical, physical presence, CRM

Quality Best business practices and highest quality service

Strategic Partnerships Alliance with global and national players to get you the

best deals


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Chapter-3


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Our Service Offerings

Asset Management

Life Insurance


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Religare in partnership with Aegon, one of the world's largest life insurance and pension groups,

operates its Life Insurance business in India under a Joint venture, Aegon Religare Life InsuranceCompany Limited.

This venture is dedicated to build a firm future, both for customers and employees and will continue to

balance a local approach with the power of an expanding global operation.

AEGON Religare Life Insurance launched its pan-India multi-channel operations in July, 2008 with

over 30 branches spread across India. The business philosophy is to help people plan their life better

and also provide high quality advice to customers and offer a superlative overall service experience.

True to its stance of being "Refreshingly Different", powered by innovation, and bringing industry

"firsts", AEGON Religare Life Insurance offers policy servicing on the phone via Interactive Voice

Response System (IVR) by issuing the customer a T-Pin for authentication. It is also the first company

to include the customer's medical report in the policy kit.

Private Equity Fund

Milestone, one of India's premier independent fund houses and Religare have come together and

through the JV have formed an entity, Milestone Religare Investment Advisors Private Limited. The

JV entity aims at making growth stage private equity investment primarily in Education & Healthcare

sectors in India.

Milestone, one of Indias premier independent fund houses and Religare, one of the leading integratedfinancial services groups of India have come together and through the JV have formed an entity,

Milestone Religare Investment Advisors Private Limited. The JV entity aims at making growth stage


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private equity investment primarily in Education & Healthcare sectors in India, which, according to

erstwhile finance minister Mr. P Chidambaram, are the twin pillars on which rests the edifice ofsocial sector reforms."

Both education and healthcare are growth sectors and are price inelastic. They are relatively less

affected by the current market downturn, and to that extent have emerged as fairly recession proof.

With rising population and low level of government expenditure, there exists a large opportunity for

private sector participation.

The new venture brings the right team structure to generate superior returns by complimenting the

strengths of Milestone and Religare. Both institutions are established players in their respective

domains Private Equity and Financial Services. The team has extensive full life cycle deal

experience of generating attractive returns across various industries and market conditions.

This venture aims at providing operational synergies to the fund as people with the domain expertise

in education and healthcare will assist in deal sourcing, evaluation and investment decisions.

Management Team

Central Leadership Team

Mr. Sunil Godhwani

CEO & Managing Director,

Religare Enterprises Limited


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Mr. Sunil Godhwani is the driving force behind the company. A man with a vision to create a global

business of excellence, he is the inspiration as he spearheads the companys management and globaloperations; strategizing and directing it through its next phase of growth. He oversees the service

brands of the promoters which include Religare Enterprises (integrated financial services) along with

Religare Technova (IT), Religare Wellness (formerly Fortis Healthworld), Super Religare

Laboratories (formerly SRL Ranbaxy; Path Labs) and Religare Voyages (private air charter and travels

business).

Mr. Godhwani brings to the company strong leadership skills, vigor & a passion for excellence. He

believes in nurturing a culture that is entrepreneurial, result oriented, customer focused and based on

team-work. He has a diverse and wide-ranging experience of over two decades in managing large

scale businesses.

Mr. Godhwani has given strategic direction to Religares growth since his joining in 2001. He has

been instrumental in establishing Religares vast network and shaping the Companys strategies in

India and abroad. He is on a constant lookout for taking the Company to new heights by managing

various acquisitions, finding new partners for joint ventures and scouting new avenues for the

business.

Mr. Godhwani is a Director in Religare Enterprises Limited, Religare Securities Limited, Religare

Finvest Limited, Religare Commodities Limited, Religare General Insurance Company Limited,

Religare Technova Limited, Religare Venture Capital Limited, Super Religare Laboratories Limited,

Religare Macquarie Wealth Management Limited, AEGON Religare Life Insurance Company

Limited, Vistaar Religare Capital Advisors Limited, Religare Voyages Limited and Fortis Healthcare

Limited.


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Mr. Shachindra Nath

Group Chief Operating Officer,


Mr. Shachindra Nath is responsible for managing all key operations of the group. His expertise and in-

depth understanding of the business is the core to all group business and development plans. Mr Nath

is a strong motivator and strategist in all the action plans of the group. His competence in tapping the

right opportunities and creating the perfect blueprint for growing the business is greatly valued and

respected.

Mr Nath received a Bachelors degree in Law from the Banaras Hindu University, Varanasi, and a

Post Graduate diploma in Intellectual Property Rights from the Amity Law College, Delhi.

Prior to joining Religare in the year 2000, Mr. Nath held various key positions across industries and

sectors. He has over 15 years of experience in the financial services industry.


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Mr. Anil Saxena

Group Chief Finance Officer,


Mr Anil Saxena plays a crucial role as the preserver of assets, cost competitiveness and value-adding

growth as he takes the final call in managing prosperity, funding the groups aggressive growth plans

and keeping the faith of the stakeholders, our biggest asset.

He is responsible for ensuring that investments give stable growth, good corporate affairs and risk

management.

He received a Bachelors degree in Commerce from the University of Delhi. He is a member of the

Institute of Chartered Accountants of India as well as the Institute of the Cost and Works Accountants

of India. He has over 16 years of experience in the financial services industry


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Board Of Directors

Mr. Malvinder Mohan Singh

Chairman (Non Executive)

Malvinder Mohan Singh, Group Chairman, Religare & Fortis Healthcare, is an entrepreneur known

for his aggressive style of management who has set a scorching pace of growth and diversification for

the group companies.

Prior to this, Malvinder was the Chairman, Managing Director and CEO of Ranbaxy Laboratories Ltd.

Malvinder put Ranbaxy in a position of leadership and consummated over 14 inorganic deals across

geographies in less than two years. He unlocked value in Ranbaxys business model and focused the

company on future growth drivers by monetizing large on-going patent challenges, investing resources

in high growth emerging markets and forging strategic research alliances with global big pharma.

Malvinder is credited of have having successfully led the company through a cultural transformation

initiating a series of enterprise wide people centric initiatives. Most recently, in a landmark deal,

Malvinder spearheaded the coming together of Ranbaxy and Daiichi Sankyo, a leading Japanese

innovator, to create a pharmaceutical powerhouse. This deal is widely acknowledged as a game

changer by the global pharma industry with other companies now trying to replicate Malvinders

success.


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Malvinder is a member of the Young Global Leaders Forum (YGL), an initiative of the World

Economic Forum (WEF). He is also a member of the board of visitors at the Fuqua School ofBusiness, Duke University and serves on the board of the INSEAD Global India Council. A member

of the Board of Trade, constituted by the Ministry of Commerce & Industry, Government of India,

Malvinder advises the Government on critical Policy issues relating to the countrys Foreign Trade,

with the objective of significantly advancing

Indias exports. Malvinder is also a member of the Board of the Indian Council for Research on

International Economic Relations (ICRIER)

Malvinder earned his MBA from the Fuqua School of Business, Duke University, USA, after

graduating in Economics from the St Stephens College, New Delhi, India.

Mr. Shivinder Mohan Singh

Non Executive Director

Mr. Shivinder Mohan Singh joined the REL Board on December 13, 2004.

Mr. Shivinder Mohan Singh is the Managing Director of Fortis Healthcare Limited and Escorts Heart

Institute & Research Centre. He is also one of the principal promoters and Director on the Board of

Super Religare Laboratories Limited.


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Mr. Singh began his career as a Management Trainee with Ranbaxy Laboratories Limited in 1996. He

progressively advanced his professional expertise and through exposure in several assignments atFortis Healthcare Limited, commencing with Executive Assistant to the Chairman in 2000 and

working through as Project Leader, Chief Operating Officer, Director Projects and Joint Managing

Director, before becoming the Group Managing Director in 2006. He is a fellow of Aspens India

Leadership Initiative and on the Board of visitors of Fuqua School of Business, Duke University, U.S.

He held the position of Chief Operating Officer of the Fortis Hospital, Mohali for two years, during

which he led his team in developing a strong work culture. He also led the acquisition of Escorts Heart

Institute & Research Center (EHIRC), the largest acquisition in the history of healthcare in India, to

make Fortis the second largest Healthcare network in India and the biggest cardiac program in the

world.

He is the Chairperson of Health Services Committee of FICCI and Member of the Indo British

Partnership (IBP)Board of FICCI. He is also the Chairman of Delhi State Council of Confederation of

Indian Industry (CII).

An alumnus of Doon School, Mr Singh graduated with a B.A. (Hons.) degree in Mathematics from St.Stephens College, Delhi and holds an MBA degree with specialization in health sector management

from the Fuqua School of Business, Duke University, U.S.A.

Mr. Harpal Singh

Non Executive Director

Mr Harpal Singh joined Board of REL on April 9, 2007.Mr. Singh has had a diverse and wide

ranging experience of over 33 years in the corporate sector and has held senior positions in various

TATA group companies, Hindustan Motors Limited, Mahindra and Mahindra Limited and Shaw

Wallace. Further, Mr. Harpal Singh is and has been on the Board of many premier educational


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institutions, including Doon School and Shriram School, and an Advisory Board Member of the SRM

University of Chennai. He is also a Member of the Punjab Education Board.

Mr. Harpal Singh has also been a member of several Government Committees and is presently a

member of the Punjab Chief Ministers Advisory Committee on Industrial Growth and Development

of Relevant Infrastructure. Mr. Harpal Singh is National Chairman of the CII Committee on Public

Health, a member of the CII National Committee on Healthcare and the National Committee on

Primary and Secondary Education. Mr. Singh is a Member of the Resource Persons Group for Delhi

on Healthcare, appointed by the Lt. Governor of Delhi.

Mr. Singh is also a member of the India-UK Round Table and is an invitee speaker in many spheres.

He has chaired the 2nd and 3rd India Health Summit in New Delhi and was invited to speak at the

Royal Institute of Great Britain on Integrating Global Healthcare. As a member of the US India

Strategic Dialogue in December 2005, he presented a strategic opportunity position for collaboration

between the U.S and Indian healthcare systems.

Mr. Harpal Singh, graduated with a B.A. (Hons.) degree in Economics from St. Stephens College,

Delhi and holds a B.S degree in Economics and a Masters Degree in public affairs from CaliforniaState University at Hayward (C.S.C.H), California, U.S.A.

Mr.Deepak Ramchand Sabnani

Independent Director

Mr. Sabnani joined the Board of REL on April 9, 2007.Having received training in business from the

Caritas Adult Education Centre, Hong Kong, Mr. Sabnani has been engaged in the business of export

and import of goods and has more than 30 years of work experience.

Mr.Padam Bahl



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Mr Padam Bahl joined the Board of REL on April 9, 2007.Mr. Padam Bahl has been practicing as a

Chartered Accountant and an Income Tax Advisor since 1979 and has more than 27 years of workexperience. He was the Chairman of the Northern India Regional Council, Institute of Chartered

Accountants of India, Amritsar Branch for the year 1998-99. He was also a member of the Income Tax

Advisory Committee, Amritsar Chapter during the years 2002-03 and 2003-04.

Mr. Bahl holds a Bachelors degree in Commerce from the Kurukshetra University and a Bachelors

degree in Law from Guru Nanak Dev University, Amritsar. He is a fellow member of the Institute of

Chartered Accountants of India. He has also received a Diploma in Information System Audit from

SSI, Amritsar.

Mr.J.W.Balani


Mr. Balani joined the Board of REL on April 9, 2007.Mr. Balani is engaged in the business of export

and import of white goods. Mr. Balani is currently associated with Atari S. L. and Time Concepts S.L.

He has more than 39 years of work experience. Mr. J. W. Balani has undertaken studies at

Broadhembury College, Somerset, U.K.

Ms.SunitaNaidoo


Ms. Naidoo joined the Board of REL on June 26, 2008.Ms. Naidoo specializes in orthodontics. She

has been practicing in the UK for past 13 years. She has helped set up and run a reputable practice at

Clapham, Bedford 7 years ago.

Mr.R.K.Shetty

Alternate to Mr. J. W. Balani


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Chapter-4


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PROJECT

During my project, I had to study of Demat account and its operation, except this I also learned online

trading. After understanding the operation of Demat account, I had to find out client of Demat account

as many as possible. For searching these clients, I had to make cold call, tale calling, group activities,

conducting meeting etc.

During these activities I find out cold, warm & hot client. After differentiating them I had to convert

them from cold client to warm client and warm client to hot client. I had to target many segments like

software company, real state company and different consultancy.

Objective of SIP(summer internship programme)

y To understand the company.

y To understand Demat account and its operation.

y To learn online trading.

y Project work

Understanding the company

During my summer project, I got the opportunity of understanding the company profile, company

business, company products, distribution network, customer of the company, organization chart,

market share, market structure and pricing promotion strategy.

Understanding Demat account and its operation

As in my SIP, I have allotted the work of study of Demat account and its operation, so many lectures

were delivered to us. In which we learned what is Demat account, why it is necessary for online

trading, different schemes of Demat and trading account, what document are require for opening

Demat account.


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Online Trading

As online trading is apart of my SIP, I learned how to trade online which is all about of purchasing and

selling shares of different companies. During these activities, I came to know the market fluctuate,

short selling, intraday trading and delivery trading etc.

Project work

As a project work, I had to study of Demat account so after getting deep knowledge about Demat

account, I have to find those clients who are interested in online trading and want to open their Demat

account in Religare Securities Company.

Limitation ofSIP

When we used to make a call to our client, we faced the following difficulties.

y Non availability of time

y Lack of knowledge

y Lack of affordability

y

Lack of knowledge about share market

y Language

STOCKMARKET

A stock market (also known as a stock exchange) has two main functions. The first function is to

provide companies with a way of issuing shares to people who want to invest in the company. This can

be illustrated by an example:


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Suppose a company has a mining lease over an area with some rich ore deposits. It wants to exploit

these deposits, but it doesnt have any equipment. To buy the equipment it needs money. One way toraise money is through the stock market. The company issues a prospectus, which is a sort of

advertisement informing people about the prospectus of the company and inviting them to invest some

money in it. When the company is floated (established) on the stock market, interested investors can

become part-owners of the company by buying shares. If the company operates at a profit,

shareholders benefit in two ways- through the issue of dividends in the form of cash or more shares,

and through growth in the value of shares. On the other hand, if the company does not operate at a

profit (e.g., if the price of the product dips), the share holders will probably lose the money. The

second function of the stock market, related to the first, is to provide a venue for buying and selling of

shares.

STOCKMARKETS ARE BIG BUSINESS

The buying and selling of shares on the worlds stock markets is big business, which is why we hear

so much about it in the news. In 1994, the annual turnover in shares at the worlds largest stock

market, the New York Stock Exchange (also known as Wall Street), was $US 2.5 trillion (that is

about Rs. 125 trillion). Even the Australian Stock Exchange (the worlds twelfth largest) will turn

about a billion dollars worth of shares on a quiet day. Shares actually constitute a relatively small

proportion of stock markets turnover, with vast sums of money being channeled through other

financial instruments such as derivatives, futures, options and bonds. It isnt possible here to describe

what these are, but one example will show the sorts of numbers involved. In one unremarkable month

in 1995, the world financial markets are report to have traded $US 1.3 trillion worth of currency. By

comparison, Australias gross domestic product ( which is the estimated total value of all goods and

services produced in the country) for the whole year in 1995 was $US 348 billion- or less than third ofa single months currency trading.

Many Indians have investments in shares listed on the Bombay Stock Exchange:


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Some make a living by trading shares on a daily basis, while many others keep the same shares for

years, hoping they will grow in value over time. But how to do these investors know what stocks tobuy, and when? Making good investments decisions depends on obtaining as much information about

the market as possible. Cracking the codes used by the stock market would be good start.

HOW STOCKMARKET WORKS?

In order to understand what stocks are and how stock markets work, we need to dive in to history-

specifically, the history of what has come to be known as the corporation, or sometimes the limited

liability company (LLC). Corporations in one form or another have been around ever since one guy

convinced a few others to pool their resources for mutual benefit.

The first corporate charters were created in Britain as early as the sixteenth century, but these were

generally what we mighty think of today as a public corporation owned by the government, like the

postal service.

Privately owned corporations came in to being gradually during the early 19 th century in the United

States, United Kingdom and Western Europe as the governments of those countries started allowing

anyone to create corporations.

In order for a corporation to do business, it needs to get money from somewhere. Typically, one or

more people contribute an initial investment to get the company off the ground. These entrepreneurs

may commit some of their own money, but if they dont have enough, they will need to persuade other

people, such as venture capital investors or banks, to invest in their business.

They can do this in two ways: by issuing bonds, which are basically a way of selling debt( or taking

out a loan, depending on your perspective), or by issuing stock, that is, shares in the ownership of thecompany.


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Long ago stock owners realized that it would be convenient if thTere were a central place they could

go to trade stock with one another, and the public stock exchange was born. Eventually, todays stockmarkets grew out of these public places.

PRIMARY AND SECONDARY MARKETS

There are two ways for investors to get shares from the primary and secondary markets. In primary

markets, securities are bought by way of public issue directly from the company. In secondary market

share are traded between two investors.

1.PRIMARY MARKET

Market for new issues of securities, as distinguished from the secondary market, where previously

issued securities are bought and sold. A market is primary if the proceeds of sales go to the issuer of

the securities sold.

2.SECONDARY MARKET

The market where securities are traded after they are initially offered in the primary market is known

as secondary market. Most trading is done in the secondary market. Generally, most shares have a face

value (i.e. the value as in a balance sheet) of Rs.10 though not always offered to the public at this

price.

Companies can offer a share with a face value of Rs.10 to the public at a higher price. The difference

between the offer price and the face value is called the premium. As per the SEBI guidelines, new

companies can offer shares to the public at a premium provided:

1. The promoter company has a 3 years consistent record of profitable working.

2. The promoter takes up at least 50 percent of the shares in the issue.


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3. All parties applying to the issue should be offered the same instrument at the same

terms, especially regarding the premium.4. The prospectus should provide justification for the propose premium. On the other

hand, existing companies can make a premium issue without the above restrictions. A

companys aim is to raise money and simultaneously serve the equity capital. As far

as accounting is concerned, premium is credited to reserves and surplus and it does not

increase the equity. Thus the companies seek to make premium issues. In a buoyant

stock market when good shares trade at very high prices, companies realize that its

easy to command a high premium. The biggest difference between them is the length

of time that you hold on to the assets.

An investor is more interested in the long-term appreciation of his assets, counting on that historical

rise in market equity. Hes not generally concerned about short-term fluctuation in prices, because he

will ride them out over the long haul.

An investor relies mostly on fundamental analysis, which is the analytical method of predicting long-

term prospects of particular asset. Most investors adopt a buy and hold approach to assets, which

simply means they buy shares of some company and hold on to them for long time. This approach can

be dangerous, even devastating, in an extremely volatile market such as todays BSE or NSE Indexes

show. What most investors need to remember is this: investing is not about eathering storms with your

beloved company- its about making money.

Traders, on the other hand, are attempting to profit on just those short-time price fluctuations. The

amount of time an active trader holds on to an asset is very short: in many cases minutes, or sometimes

seconds. If you can catch just two index points on an average day, you can make comfortable living as

a trader.


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Stock market (stock exchange) is a place where buying and selling of securities takes place. Person

buys or sells shares to each other. We also call it Secondary Market. This market is regulated bySEBI. All the stock exchange has to get permission of SEBI for trading purpose.

An individual investor cannot participate directly in stock market. He has to buy/sell shares through

an Exchange Member. This member is known as stock broker i.e. Religare, Karvy and Indiabulls etc.

this broker is registered with SEBI. SEBI gives unique registration and trading number for each

segment.

Broking Company makes agreement with depositories NSDL/CDSL. This broker becomes depository

participant. Securities are kept with this depositories. These works just like banks which accept money

on behalf of a client. This facilities transfer of securities from one account to another. Client who open

a demat with any of the depository gets unique client ID. His all buying and selling are shown in his

demat account.


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RISKS INVOLVED IN THE STOCKMARKET

1. To make money in the stock market, you must assume high risks.

Tips on lower your risks:

y Do not put more than 10% of your money in to anyone stock.

y Do not own more than 2-3 stocks in any industry.

y Buy your stocks overtime, not all at once.

y Buy stocks with consistent and predictable earnings growth.

y Buy stocks with grow rates greater than the total of inflation and interest rates.

y Use stop-loss orders to limit your risk.

2. Buy stocks on the Way Down and Sell on the Way Up.

False: People believe that a falling stock is cheap and a rising stock is cheap and rising stock is too

expensive. But on the way down, you have no idea how much further it may fall. If a stock is rising,

especially if it has broken previous highs, there are no unhappy owners who want to dump it. If the

stock is fairly valued, it should continue to rise.

3.

You can hedge inflation with stocks.

When interest rates rise, people start to pull money out of the market and in to bonds, so that

pushes prices down. Plus the cost of business goes up, so corporate earnings go down, along

with the stock prices.

4. Young people can afford to take high risks.

False: The only thing true about this that young people have time on their side if they lose all

their money. But young people have little disposable income to risk losing. If they follow the

tipsabove,theycan make money over many years. Young people have the time to be patient.


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Technical Analysis

It is a method of evaluating future security prices and market directions based on statistical analysis of

variables such as trading volume, price changes etc., to identify patterns. It is a stock market term

meaning- the attempt to look for numerical trends in a random function. The stock market used to be

filled with technical analysts deciding what to buy and sell, until it was decided that their success rate

is no better than chance. Now technical stock analysis is virtually non-existent. There are many

instances of investors successfully trading a security using only their knowledge of the securitys

chart, without even understanding what the company does.

Fundamental Analysis

Fundamental analysis looks at a shares market price in light of the companys underlying business

proposition and financial situation. Iot involves making both quantitative and qualitative judgments

about a company. Fundamental analysis can be contrasted with technical analysis, which seeks to

make judgments about the performance of a share based solely on its historic price behavior and

without reference to the underlying business, the sector its in, or the economy as a whole.

What is a share?

In finance a share is unit of account for various financial instruments including stocks, bonds, mutual

funds, limited partnerships. In simple words, a share or stock is a document solely to stocks is so

common that it almost replaces the word stock itself. It is issued by a company, which entitles, its

holders to be the one of the owners of the company. A share is issued by a company or can be

purchased from the stock market. Bu owning a share you can earn a portion in the firm and by selling

the shares you get capital gain. So, your return is the dividend plus in the capital gain. However, you

also run a risk of making a capital loss if you have sold the share at a price below your buying price.


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Broker

Every transaction in the stock exchanges is carried out through licensed members called broker. To

take in shares, you have to approach a broker. However, since most stock exchange brokers deal in

very high volumes, they generally do not entertain small investors. These brokers have a network of

sub-brokers who provide them with orders.

The general investors should identify sub-brokers for regular trading in shares and place his order for

purchase and sale through the sub-broker. The sub/broker is a person or a firm that trades on its clients

behalf, you tell them what you want to invest in and they will issue the buy or sell order. Some stock

brokers also give out financial advices that you are charged for.

It wasnt too long ago and investing was very expensive because you had to go through a full service

broker which would give you advice on what to so and would charge you a hefty for it.

Types of stock broker

y Full Service Broker

A full-service broker can provide a bunch of services such as investment research advice, tax planning,

retirement planning etc.

y Discount Broker

A discount broker lets you buy and sell stocks at a low rate but doesnt provide any investment

advice.

y Direct-Access Broker

A direct access broker lets you trade directly with the electronic communication network (ECNs) so

you can trade faster. Active traders such as day traders tend to use Direct-Access brokers.


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So as you can tell there a few options for stock broker and you really need to pick which one suits you

need.

PORTFOLIO MANAGEMENT SERVICES

Pro-Prime:- Research and Fundamental Analysis

Pro-Tech:- Technical Analysis

- Thrifty Nifty

- Beta Portfolio

Pro- Arbitrage:- Exploit Price Analysis

IPO ON-LINE

You can apply all the forthcoming IPO online hassle free, paperless and time saving work.

Depository Charges

Annual Maintenance Charges Rs. NIL first year, Rs. 180/= p.a.

Exposure

4 TIMES (ON MARGIN MONEY)

Tie-UP

We have tie up with eleven banks for online fund transferring i.e. ICICI BANK, HDFC, IDBI, Yes

Bank, UTI Bank, INDUSIND and Bank Of India for online money transfer.


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Following Documents Required Opening An A/C With Religare Ltd.

y Photo ID proof

y PAN Card (Mandatory)

y Passport

y Driving License

y Voters ID

MAPIN UIN CARD

y

Residence Proof (Permanent)

y Passport (Valid)

y Voters ID

y Driving License (Valid)

y Bank Statement (Latest)

y Telephone Bill (Latest)

y Electricity Bill (Latest)

y

Ration Card

y Flat Maintenance Bill (Latest)

y Insurance Policy (Latest)

y Leave-License/Purchase Agreement

2 Photographs (Passport Size & Front Face)

Cheque for classic a/c and for speed trade in the favour of Religar.


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NSE

The National Stock Exchange of India Ltd. was created one of the bases of the report of the High

Power Study Group on establishment of New Stock Exchange, which recommended promotion of

national stock exchange by financial institution to provide excess to investor from all across the

country on an equal footing.

In 1992, NSE was incorporated as a tax paying company unlike another stock exchange in the country.

In April 1993, NSE was recognized as a stock exchange under the security contract (Regulation) Act,

1956 and it commenced operation in the wholesale debt market segment in June 1994, the capital

market segment commenced operation in Nov.1994, and operations in derivative segment were

started in June 2000.

In Oct.1995, NSE became the largest stock exchange in the country. NSE launched S&P CNX Nifty in

April 1996.

NSE is one of the largest interactive VSAT based stock exchanges in the world. Presently, it supports

more than 3000 VSATs. The NSE network is the largest private wide area network in the India and the

first extended C-Band VSAT network in the world.


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BSE

The Bombay Stock Exchange Ltd. is the oldest stock exchange in Asia. It is also the biggest stock

exchange in the world in terms of listed co. with 4800 listed companies as of Aug. 2007. It is located

at Dalal Street, Mumbai, India. In Oct.2007, the equity capitalization of the companies listed on the

BSE was US dollar 1.61 trillion, making it the largest stock exchange in South Asia and tenth largest

in the World.

Bombay Stock Exchange was established in 1875. Around 4800 companies are listed on the exchange,

and it has a significant trading volume. The BSE SENSEX (SENSITIVE INDEX), also called the

BSE 30, is a widely used market index in India and Asia. Though many other exchanges exist, BSE

and NSE account for most of the trading in shares in India.

Bombay Stock Exchange Limited is popularly known as BSE. It was established the native share and

stock brokers association in 1875. It is the first stock exchange in India to obtain permanent

recognition in 1956 from the Govt. of India SC(R) act 1956.

BSE played a vital role in the development of the Indian Capital market and its index, SENSEX is

tracked worldwide. The exchange was nationwide reach with a presence in 417 cities and towns of

India. BSE provides efficient and transparent market for trading in equity, debt and derivative

instruments.


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NSDL

Although India had a vibrant capital market which is more than a century old, the paper based

settlement of trades caused substantial problems like, bad delivery and delayed transfer of title till

recently. The enactment of depositories Act in Aug 1996 paved the way for establishment of NSDL,

the first depository. This depository was promoted by institution of national stature responsible for

economic development of the country, has since established a national infrastructure of international

standards that handles most of the securities and settled in dematerialized form in the Indian capital

market.

Using innovative and flexible technology systems, NSDL works to support the investors and brokers

in the capital market of the country, NSDL aims at ensuring the safety and soundness of Indian Market

places by developing settlement solutions that increase efficiency minimize risk and reduce cost.

Promoters

NSDL is promoted by IDBI-the largest development bank of India, UTI- the largest mutual fund in

India and NSE- the largest stock exchange in India. Some of the prominent banks in the country have

taken a stack in NSDL.

Depository System- Business Partners

NSDL carries out its activity through functionaries called Business Partner who include DPs, issuing

companies and their registrars, Share Transfer Agents, Clearing Corporations/Clearing Houses of

Stock Exchanges. NSDL is electronically linked to each of these business partners via a satellite link

through VSATs or through leased landlines. The entire integrated system (including the electronic

links and the software at NSDL and each business partners end) is called the NEST (nationalelectronic settlement and transfer system).


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CDSL

CDSL was promoted by Bombay Stock Exchange Limited jointly with leading banks such as SBI,

Bank Of India, Bank Of Baroda, HDFC Bank, Standard Chartered Bank, Union Bank Of India,

Centurion Bank Of Punjab.

CDSL was set up with the objective of providing convenient, dependable and secured depository

services at affordable cost to all the market participants. Some of the important milestones of CDSL

system are:

CDSL received the certificate of commencement of business from SEBI in February, 1999. Honorable

Union Finance Minister, Shri Yashwant Sinha flagged of the operation of CDSL on July 15th 1999.

Settlements of trades in the demat mode through BOI shareholding limited, the clearing house of BSE,

started in July 1999. All leading stock exchanges like National Stock Exchange, Calcutta Stock

Exchange, Delhi Stock Exchange, The Stock Exchange of Ahmedabad etc. have established

connectivity with CDSL.

As the end of Dec.2007, over 5000 issuers have admitted their securities(Equities, Bonds, Debentures,

CP, units of Mutual Funds, and cert ificates of deposits etc.) in to the CDSL system.

Depository

A depository facilitates holding of securities in the electronic form and enables securities transactions

to be processed by a depository participant (DP), who as an agent of the depository, offers depository

services to investors. According to SEBI guidelines, financial institutions, banks, custodians, stock

brokers etc. are eligible to act as DPs. The investor who is known as beneficial owner (BO) has to

open a demat account through any DP for dematerialization of his holdings and transferring securities.


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The balance in the investors account recorded and maintained with NSDL/CDSL can be obtained

through the DP. The DP is required to provide the investor, at regular intervals, a statement of accountwhich gives the detail of securities holdings and transactions. The depository system has effectively

eliminated paper based certificates, which were prone to be fake, forged, counterfeit resulting in bad

deliveries.

Dematerialization

Dematerialization is a process by which a physical certificates are converted in to electronic form.

Securities are kept stored with the depository in the electronic form on the behalf of BO.

Beneficial owner is a person on whose name a demat account is opened with NSDL/CDSL for the

purpose of holding securities in the electronic form and whose name is recorded as such with

NSDL/CDSL through DP.

Company which issue shares to the public is called as issuer. The company is listed on any of stock

exchange. ISIN is given to a security of an issuer at the of admitting such security in the depository

system. This number can be identified internationally. Different securities issued by the same issuer

will have different ISINs.

Services Provided by a DP

Following services can be availed of through a DP:

Dematerialization, i.e. getting physical securities converted in to electronic form.

Rematerialization, i.e. getting electronic securities held in a BO account converted in to physical

form.

To maintain record of holding in the electronic form.


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Settlement of trades by delivering/receiving underlying securities form in BO account.

Settlement of off-market trades i.e. transaction between BOs entered outside the stock exchange.

Providing electronic credit in respect of securities allotted by issuer under IPO or otherwise.

Receiving on behalf of demat account holders non cash corporate benefits, such as, allotment of bonus

and right shares in electronic form or securities resulting upon consolidation, stock split or

merger/amalgamation of companies.

Pledging of dematerialization of securities and facilitating loans against shares.

Freezing of demat account for debit, credit or both.

Benefits of Opening a Demat Account

A demats account has become necessity for all categories of investors for following reasons:

SEBI has made it mandatory for trades in all listed scrip to be settled in demat mode. Although, trades

up to 500 shares can be settled in physical form. Physical settlement virtually not taking place for

apprehension of bad delivery on account of mismatch of signatures, forgery of signature, fake

certificates etc.

It is a safe and convenient way to hold securities compared to holdind in physical form.

No stamp duty is levied on transfer of securities held in demat form.

Instantaneous transfer of securities enhances liquidity.

It eliminates delays, thefts, interceptions and subsequent misuse of certificates.

Change of address, registration of power of attorney-can be effected across companies by one single

instruction tom the DP.


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Each Share is a market lot for the purpose of the transaction, so odd lot is not a problem. Any number

of securities can be transferred /delivered with one delivery order.

Immediate credit in case of any allotment in bonus, right issues and IPOs. SEBI has directed that no

investor should pay account opening charges, besides the statutory charges.

Any number of securities admitted with CDCL can be dematerialized and held in one demat account.

An investor has do to open an account with a DP.

The process of opening a demat account through a DP of CDSL is very simple and easy. It is similar to

the opening of an bank account. Investor has to first choose a DP based on his convenience and the

DPs charges. Besides submitting an application in the prescribed form, the investor should submit a

photocopy of the PAN card along with the original as proof of identify and address proof such as

passport, ration card, etc to the DP.

Before opening the demat account, the investor will have to execute and agreement on a stamp paper

to be provided by DP, which define the rights and the obligations of both, the investor and the DP. On

opening a demat account, a unique BO ID (Beneficial Owner Identification). Number is allotted,

which should be quoted in all future transactions.

Restriction to have demat account with only in one DP

Under the depository system, there is no restriction on opening a BO account with the same or other

DPs subject to the condition that all account opening requirements are complied with. A investor can

open any number of demat with depositories. Investor is not required to open his demat account with

the same DP as that of his broken. Investor can open account with the DP of his choice and can carry

on his trading activity through a broken of his choice.


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Nomination Facility in Demat Account

An can nominate any person for claims in case of any miss happening. A minor can also be nominated

by an investor only if he is represented by a court appointed/natural guardian. Both resident Indians as

well as NRIs. Similarly, an NRI can nominate a resident Indian or another NRI. Only on e person is

nominated by BO.

It is advisable for all individual BOs to avail of his facility. It gives convenience to related person to

claim fast. If nomination is not done they have to prove their relationship with investor.

Who can nominate?

Individual, having/opening demat accounts, either, singly or jointly with one or two persons can make

nomination. If the shares are held jointly, all the joint holders are required to sign the nomination form.

Who cannot nominate?

Non-individuals including societies, trusts, body corporate, kartas of Hindu Undivided Family, holders

of power of attorney cannot make a nomination.

Who cannot be appointed as nominee?

Trusts, societies, body corporate, kartas of Hindu Undivided Family, holders of power of attorney

cannot make a nominee.

Sole holder of share certificate and add/delete any name as a joint holder, at the time of

dematerializing the share certificate.

It is not possible toad or delete any name while dematerializing share certificate. If the shares are held

in single name are intended to be held in any joint account, they have to be transferred to such names

before they are dematerialized. Alternatively, such shares can he dematerialized first in the demat


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Transposition

Change in the order of names in which certificates are issued in termed as transposition. Sometimes, a

titleholder of securities holds them jointly with one/two/three persons in different order of names.

Since, dematerializations can take place through a demat account only in the identical order names,

such investor would have to open multiple demat accounts as per the order of name. To avoid such a

situation, the investor could consider using the transportation-cum-demat facility.

Transportation-cum-demat

Transportation-cum-demat facility enables an investor to transpose names of the joint holders in

desired order along with the process of dematerialization of certificates. Transportation-cum-

dematerialization facilities dematerialization of certificates held in different order of names through

one demats account, provided the securities to be transposed are held in the same name joint names,

but, in a different order. Illustratively if A owns a security. Which held in the joint names if ABC,

ACB etc.

He can first transpose them in the name of, say, ABC in which order demat account might have been

opened. No new name can be added through transposition process. Similarly, existing names cannot be

deleted.

Procedure for transportation-cum-dematerialization request

The BO should submit his application in Transposition Request Form(TRPF) along with the Demat

Request Form(DRF) and the share/securities certificates to his DP. Separate TRPF is required to filled

for each ISIN. Different combination of names can be listed in separate boxes in section (c) of the

TRPF.

Requirements for availing of the transposition-cum-demat facility


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The application for transposition should contain only those names in which the BO account has been

opened. Signatures of all the holders affixed on TRPF should tally with the DPs records.

Procedure for delivery of securities in demat form in case of sale of securities

The procedure for selling dematerialized securities through any stock exchange is similar to the

procedure for selling physical shares. However the

procedure for delivery of securities is much simpler when compared to the delivery of securities in

physical segment in case of sale of demat security.

Procedure for receipt of securities in demat form in case of purchase of securities

A purchase of securities can give on-time standing instruction to his DP for receiving securities in his

account. This standing instruction can be given at the time of opening of account or later.

Alternatively, a BO may chose to issue separate receipt instruction to his DP every time he makes any

purchase of securities.


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On market and off market transaction

Any transaction for sale and purchase of securities through a broker on the stock exchange to be

settled through clearing corporation/ clearing house i.e. NSCCL, is generally termed on market

transaction.

Off market transaction is one which is settled directly between two BOs with or without using the

broker and where no Clearing Corporation/ Clearing House is involved.

Inter depository transfer

Any transfer of securities between two BOs not having demat accounts with the same depository is

termed as an inter depository transfer. Inter depository transfers can be executed through the same

instruction slips used,

for on market and off market transactions. Securities can be bought and sold only through a stock

broker. DP facilitates delivery of securities against a sell transaction or receipt of securities for a buy

transaction.

Transaction charge in respect of transfer of demat securities

Transaction charges for each debit in a BO account is levied by CDSL and collected by DPs. DPs after

adding their markup, if any, fix a compositecharge which is intimated by them to their clients.

Settlement no. is indicated by seven digits, the first four digits represent the year and remaining three

digits represent the settlement no. of the exchange on which the transaction has been executed.

Client level pay-in benefits

Facility to deliver securities to Clearing Corporation/ Clearing House directly from the demat account

of investor is termed as client level pay-in, benefits of client level pay-in are:


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In the present market environment of T+2 pay-in settlement cycle, faster settlement of securities can

be facilitated.

Client level pay-in avoids issuance of multiple instructions i.e. first from client to CM and then from

CM to Clearing Corporation/ Clearing House. Last minute pay-in is possible through the client level

pay-in.

Client level pay-in avoids counter party risks associated with the delivery of securities through an

intermediary. Last minutes credits received in a BO accounts before pay-in time can be used for pay-

in. part pay-in of securities is possible, thereby, reducing losses due to auction.

Debt instruments available for demat at CDSL/NSDL

All types of debt instrument viz. bonds, debentures, CPs, CDs, government securities etc. irrespective

of whether these instruments are listed/unlisted/privately placed can be dematerialized with CDSL, if

they had been admitted with CDSL/NSDL. CDSL/NSDL has also provide the facility of

maintaining warehouse receipts pertaining to commodities in dematerialized form. Debt instruments,

mutual funds units and govt. securities can also be dematerialized in the same demat account where

equities are held.

Commodity warehouse receipts be dematerialized in the same demat account

Investors and brokers are required to open separate demat accounts for holding warehouse receipts.

These accounts can be used only for holding warehouse receipts.

Corporate action

Distribution of dividend or interest payment, issue of rights of bonus securities, consolidations of

holdings or issue of another security on account of merger or demerger, calling money on partly paid


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securities, buy back or open offer, etc. are normally the purpose for which issuer sets up corporate

action to consider benefits or entitlement of holder.

Initial Public Offer (IPO)

When a company issues securities to the public through a prospectus it is popularly known as IPO.

Credit of securities allotted in IPOs can directly effected in the investor demat accounts.

TERMS OF REFRENCE

This report has been prepared as Summer Internship report. It is prepared at ending of summer

project as the part of MeBA curriculum. It has been prepared while I am in 3 rd Semester of 2nd year of

MeBA and has been prepared by me.

This report has certain limitations :

The time period allotted to us for submission of this report was two and a half months. I have to cover

the report in Indian reference only. I was required to restrict my report with him 60 to 80 pages. The

information I have collected for writing this report is from the internet, some books and our summer

project guide. All the expenses in preparing this report were incurred by me. According to company

policy confidential data was not provided/ shown to me.


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REASONS TO CHOOSE RELIGARE

EXPERIENCE: SSKI has more than eight decades of trust and credibility in the Indian Stock Market.

In the Asia money brokers poll held recently. SSKI won the Indias best broking house for 2004

award. Ever since it launched Religare as it retail broking division in Feb 00, it has been providing

institutional level research and broking services to individual investors.

TECHNOLOGY: With our online trading A/c you can buy and sell shares in an instant from any PC

with an internet connection. You will get access to our powerful online trading tools that will help you

take complete control over your invest in shares.

ACCESIBILITY: Religare provides advice, education, tools and execution services for investors.

These services are accessible through our centers across the country (over 588 locations in 148 cities)

over the internet ( through the website www. Religare.in) as well as over the voice tool.

KNOWLEDGE: In a business where the right information at the right time can translate in to direct

profits, you get access to a wide range of information on our content rich portal religare. You will also

get a useful set of knowledge based tools that will empower you to take informed decisions.

CUSTOMER SERVICE: Our customer service team will assist you for any help that you need relating

to transactions, billing, demat and other queries. Our customer service can be contracted via a toll free

no. email or live chat on www.religare.in


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ANALYSIS ABOUT RELIGARE

OUR BUSINESS FOCUS; Their main focus is our customer service, customer education, customer

support, customer relations and last but not the least customer acquisitions.

STRONG PRODUCT BASKET: Specific products catering to each customer segment.

TRAINING SESSIONS: Comprehen