Study on progress and Investor's perception towerds dematerialization of Shares.

8/9/2019 Study on progress and Investor's perception towerds dematerialization of Shares.

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Study On Progress and Investors Perception

Towards Dematerialization of Shares

Presented By:

Vriti Narayan Bohra

JKPS/PGDM/09/57


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STUDY ON REATIONSHIP MARKETING IN CAPITAL MARKET WITH

SPECIAL REFERENCE TO EDELWEISS BROKING LTD.

Edelweiss Group-IntroductionEdelweiss Group-Introduction

Edelweiss, a rare flower

found in Switzerland. Agraphic flower thatrepresents ideas. Aroundit, the protective arms ofthe letter E: They

believe idea

s crea

tewealth, but valuesprotect it. It is thepractice of this corethought that has led toEdelweiss becoming one

of the leading financialservices company inIndia.


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Leading diversified financial services organization

Incorporated in 1995 as an investment bank focus onPrivate Equity Syndication

Key businesses now: Investment Banking, Brokerage -Institutional and Retail, Asset Management, Financing

and Treasury.

Group net-worth of INR 24.7 bn (~USD 500 mn)


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Total employee strength ~1200.

One of the largest equity research teams

Differentia

ted resea

rch ca

pa

bilitiesOnly Analytics team in IndiaHighly respected and acknowledged Thematic

Research


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Retail Broking & DistributionRetail Broking & Distribution

New growth initiative at Edelweiss targeting the massaffluent

Centralized model of online (www.edelweiss.in) and

tele-ca

lling ba

sed broking

Strong product offering based on delivering servicesbased on client profile


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Retail Broking & DistributionRetail Broking & Distribution

One of the widest Research offering for individualclients

Current client ba

se ofa

round 48,

000.


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Edelstar

Quant Basket

Research Products:Research Products:


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Institutional Equities Research - first in India to beoffered to individual clients

Macro and Micro economy research reports on

regular basis.

Fundamental and Technical analysis to pick theright stock

Researches:Researches:


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Brokerage Plans:Brokerage Plans:

Advance Brokerage (ADB) Plans:


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Advance Brokerage (ADB) Plans:


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Standard Plans (For Margin Money):


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Edelweiss Presence:Edelweiss Presence:


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` To Study the progress of Dematerialization of Shares.

` To identify the investors awareness towardsdematerialization of Shares.

` To examine the satisfaction level of the investorstowards the benefits of dematerialization of Shares.

` To identify the investors opinion towards variouscharges levied by the depository participants.

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


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Type of Research: The research was a Descriptive Research.

Sampling Technique: Random sampling is the sampling technique I have used in my

research.

Sampling Area: Gurgaon, NCR

Sample Size: 100


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DATA COLLECTION

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

problem.

SOURCES OF DATA

Primary Data

Secondary Data

Primary Data:

Questionnaires

Personal Interview

Secondary Data : News papers & magazines

Research articles

Reference Books

Websites.


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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


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0

20

40

60

80

100

120

Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10

23.22

34.2137.18

3.95

52.03

63.01

75.679.03

93.7296.86

105.85

(Data- in lacks)


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1550

37215167

6876836

12866

17472

20270

236 0

28287

35114

187

2858

5530

8201

10872

13543

16215

18886

21557

24228

26 00

0

5000

10000

15000

20000

25000

30000

35000

40000

Actual Demat Quantity(Shares inCrores)

Trend Demat Quantity(Shares inCrores)


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0

1000000

2000000

3000000

4000000

5000000

6000000

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

28545 76003 128252247369

629159

1011397

1861288

2873508

4798222

5527479


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57 192482

8211401

1908

27223125

4982

7081

-286

178

642

1106

1571

2035

2499

2963

3422

3891

-2000

0

2000

4000

6000

8000

10000

12000

Trend DematQ

uantity(Shares inCrores)

Actual Demat Quantity(Shares inCrores)


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0

10

20

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40

50

60

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Highly Aware Aware Neutral Not Aware Highly notAware

15

70

10

5

0


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0

10

20

30

40

50

0

Highly Aware Aware Neutral Not Aware Highly not Aware

25

55

108

2


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16

222

21

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48%

39%

13%

High

Medium

Low


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19%

29%

52%

High

Medium

Low


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21%

55%

24%

HighMedium

Low


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25%

46%

29%

High

i

Low


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25%

36%

39%

High

i

Low


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50%

24%

26%

High

Medium

Low


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28%

44%

28%

High

Medium

Low


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0

5

10

15

20

25

30

35

i l ti fi ti fi tr l i t fi i l i ti fi

21

35

19

16

9


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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Rematerialization of Demat Securities

Lending & Borrowing of Demat securities

Freezing of Demat Account

Reduction in Paper work

Quick Transfer of ownership

Reduction in Brokerage

Elimination of Bad deliveries

Faster settlement Cycle

3

0

11

27

22

10

6

12

24

7

24

38

33

37

42

53

31

36

30

20

22

21

20

21

23

27

23

9

16

19

18

11

19

30

12

6

7

13

14

3

Highly Aware

Aware

Neutral

Not Aware

Highly not Aware

Cont.


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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

No courier/Postal charges

Low transaction cost

No stamp Duty

Electronic credit of shares

No odd lot problem

Faster disbursement of benefits

Saves transaction time

Periodic status report

16

10

5

5

13

16

25

11

20

15

35

32

20

23

35

21

25

15

20

10

27

22

20

12

24

20

15

15

22

21

18

29

15

40

25

38

18

18

2

27

Highly Aware

Aware

Neutral

Not Aware

Highly not Aware

Cont.


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0 20 40 60 80 100

Account opening charges

Annual maintenance charges

Custodian Charges

Transaction charges

Market/off market charges

Pledge/Hypothecation Charges

emateriali ation Charges

48

19

22

25

25

50

28

39

29

57

46

36

24

44

13

52

25

29

39

26

28

High

Medium

Low

Charges Levied By epository Participant


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Suggestions for the Study:

` The Investors should be provided with their statement of accounts at regular intervalswithout any delays after the transaction takes place. The depository participants shouldalso inform the investors about their day to day trading activities and their account balance

` Depository Participants should send pamphlets and magazines containing informationabout the latest changes in the demat segment to their client. When there are any newfacilities offered by the depositories to the investors, it should be properly intimated toinvestors. Depository participant are also advised to conduct a number of investorsawareness programs and advertise their offer of services in various newspapers andpopular magazines.

` The investors can put their complaints to their depository participants and in case of failureof depository participants to resolve the complaints, then the investor can write to theInvestor Grievance cell of NSDL or CDSL.


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` NSDL and CDSL are asked to create a Net Forum/E-Forum in order toexchange their market information regularly between the investors anddepository or investors and depository participants or depositoryParticipant and depository.

` Depository Participants can make it a regular practice to organize

frequent meetings for their investors so as to strengthen theirrelationship with the existing investors. This would definitely give anopportunity for the DPs to take note of grievances if any and offerprompt settlement of issues.

` In order to retain the investors, the depository participants should offertheir services promptly and kindly, In addition to this, Depository

Participants can also select one long time investor year by year andprovide them with Gifts.


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Now a days, share markets occupy a key role both in thedevelopment of economy and individual investors in theirbusiness, The Indian capital market had thus witnessednumerous changes in the recent years, and one such changeis Dematerialization.

Dematerialization of securities play a vital role in improvingand modernizing the capital market and enhance the levelsof investor's perception measures which aim at eliminatingthe bad deliveries and forgery of shares. Thus, the studyshows a clear picture on the progress of investor's

accounts and dematerialization of shares in NSDL andCDSL and the Investor's perception towardsDematerialization ofShares.


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Study on progress and Investor's perception towerds dematerialization of Shares.

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