Dematerialisation ..by hemlata tekwani
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Transcript of Dematerialisation ..by hemlata tekwani
Sophia Girls College ,Ajmer
Presentationon
WithStock Holding Corporation Of India Limited
SUBMITTED TO : SIR RAMAN TIWARIHEAD OF DEPARTMENT
SUBMITTED BY:HEMLATA TEKWANIBBA PART III
Stock Holding Corporation of India Ltd. (SHCIL) was incorporated as a Public Limited Company in 1986. It has been jointly promoted and owned by leading Banks and Financial Institutions viz., IDBI Bank Ltd., ICICI Bank Ltd., SU-UTI, IFCI Ltd., LIC, GIC, NIA, NIC, UIC, and TOICL, all leaders in their fields of business.
SHCIL began by offering custodial and post trading services, adding depository services and other services to its portfolio over a period of time.
SHCIL has established itself in India as a one-stop solution provider in the Financial Services domain.
MISSION STATEMENT
“TO BE A WORLD CLASS TECHNOLOGY
DRIVEN AND CLIENT FOCUSED MARKET
LEADER IN FINANCIAL AND TECHNICAL
SERVICES”
ACCOUNT OPENING
ACCOUNT MAINTENANCE
DEMATERIALISATION
REMATERIALISATION
MARKET TRANSFERS
OFF-MARKET TRANFERS
PLEDGE/ HYPOTHECATION
TRANSMISSION
Conversion of physical securities into
electronic form
No distinctive number to securities
required as depositing & withdrawing
money from a bank without bothering
about distinctive no. of currency
bad deliveries due to signature difference
mistakes in completion of transfer deeds
tearing and mutilation of securities
fake certificates
fraudulent interception of certificate in transit
transfer stamp duty
extra consumption of time by the Companies
postal delays and charges etc
SHAREHOLDERSWith Physical
Certificates
DEPOSITORY
PARTICIPANTS
Shareholder Goes To DP with his Physical
Share Certificates
ACCOUNT
OPENING
Shareholder opens his Account with DP
DEMAT REQUEST FORM
Shareholder fills DRF in duplicate, defaces the sharesand hands
over to DP
R & T
AGENT
The DP sends Share Certificates to R & T
agent for dematerialisation
DEPOSITORYDp sends Information
electronically to Depository
DEMATERIALISATION
Upon confirmation of Demat by R & T Agent
the Depository Confirms
Dematerialisation
CREDIT TO THE BO ACCOUNT OF THE
INVESTOR
Share Certificates Dematerialised
PROCESS OF DEMATERIALISATION :
• DEMAT is a safe and convenient way to hold securities as it allows Immediatetransfer of securities. There is no stamp duty on transfer of securities.
• Elimination of risks associated with physical certificates such as bad delivery,fake securities, delays, thefts etc.
• There is a major reduction in paperwork involved in transfer of securities.
• Change in address recorded with DP gets registered with all companies inwhich investor holds securities electronically eliminating the need tocorrespond with each of them separately.
• Automatic credit into DEMAT account of shares, arising out ofbonus/split/consolidation/merger etc
• Holding investments in equity and debt instruments in a single account
• Benefit to the Company: The depository system helps in reducing the cost ofnew issues due to less printing and distribution cost. It increases the efficiencyof the registrars and transfer agents and the Secretarial Department of thecompany. It provides better facilities for communication and timely services withshareholders, investor etc.
• Benefits to Brokers: The depository system reduces risk of delayed settlement.It ensures greater profit due to increase in volume of trading. It eliminateschances of forgery. It increases overall of trading and profitability and alsoincreases confidence in investors.
Research Methodology is a way to systematically solve the research problem.
Research Methodology concerning a research problem or study provide answers to various questions like;
why a research study has been ,undertaken , how the research problem has been defined.
what data have been collected and what particular method has been adopted to collect the data.
what technique has been used for analyzing the data and a host of similar other questions
.
Type of research descriptive and exploratory
research
• sampling technique non- probability sampling
sample size 50
sample description SHCIL clients, ajmer public
instrumental technique interview, questionnaire
sources of data collection primary data was collected by
conducting interview.
secondary data was collected
from ,
books and internet.
Software use for data analysis Ms word and MS office
Method used for Analysis of DataThe methodology used for this purpose is Survey a Questionnaire Method. It is a time consuming and expensive method and requires more administrative planning and supervision. It is also subjective to interviewer bias or distortion
1) Are you aware of Stock Market?
Analysis:-
This graph shows that all the 50 individuals were aware of stock market. So it can also be possible that investors will rise in near future.
0 20 40 60 80 100 120
YES
NO
No. of Responding
No. of Responding
2) Are you aware of Demat Account?
Analysis :-The above table clearly shows that from a sample size of 50 respondents, 40 individuals were aware of demataccount
0 10 20 30 40 50
No
Yes
Awareness of Demat Account
Awareness of Demat Account
3) Duration for which investor has been transacted in Stock Market?
0 5 10 15 20
Less than 1 year
1 year
2 year
More than 2 year
Duration of investors trading through Shcil
amount of duration
Analysis:-The above table clearly shows that from a sample size of 50respondents, 12 have been trading in the stock exchange for more than 2 years. 10 investors were trading for 2 years and remaining 28 for one year or less than a year.
4) WHICH TYPE OF SCRIPTS YOU HAVE ?
0
5
10
15
20
25
30
35
40
PHYSICAL DEMATERIALISED
TYPE OF SCRIPTS
TYPE OF SCRIPTS
Analysis:-Above graph shows that many individuals have dematerialised scripts and some have physical scripts.
5) Do you convert your shares Electronically?
0
5
10
15
20
25
30
35
YES NO
Series 1
Analysis:-This chart shows that 30 individuals wanted to convert their shareselectronically and rest were not.
6)Are you satisfied with Demat Service Provider by SHCIL ?
0
5
10
15
20
25
30
35
40
45
YES NO
Series 1
Analysis:This graph shows that most of the people were satisfied with demat service provider
7) what respondents think how secure the securities are in demat a/c in SHCIL ?
a. excellent b. very good c. good d. average
0
5
10
15
20
25
30
EXCELLENT VERY GOOD GOOD AVERAGE
Graph showing the securities secure in demat account
Graph showing the degree ofsecurities in demat account
Analysis:24 of the respondents said there securities are excellently secure,8 said very good security , 6 said good security and 2 of the respondents said average security of there accounts.
1) Most of the people were aware of stock market.
2) 40% of individuals were aware of demat account out of 50%.
3) More investors have stared trading from one year or less than one year
4) More of the individuals are trade occasionally and than individuals tra.de frequently
5)Many individuals have dematerialised scripts and some have physical scripts.
6) More than half of the individuals wanted to convert their shares electronically and rest were not.
7) Most of the people were satisfied with demat service provider.
8) The survey indicates that the investors are more safe and secured from the demat in SHCIL
The respondents were asked to indicate their true responses to the questions being asked, but rather than giving the response, they might have been in a form of expert comments which might have based the result of the study.
The results of the study may not be universally applicable due to regional constraints.
Some of the persons did not responded questionnaire.
Personal biasness may be included in the research work
On the whole, my project at SHCIL was worthwhile as i got opportunity to learn a lot about the capital market and dematerialization. It was a wonderful experience interacting with employees of the organization and simultaneously enhancing my knowledge and skills about stock market operations. I got to know about the process of dematerialization, account opening and how the trades department settles the various transactions.
Working at SHCIL and preparing this project was a learning experiences and I shall make immense use of it in my career.
• Study material of capital market
Zikmund , William G; “Business Research Methodology”, Seventh Edition, Thompson South Western Publication
• Websites Visited
www.shcil.co.in
www.sebi.gov.in
www.nseindia.com
www.bseindia.com
www.businessweek.com