A

SUMMER TRAINING PROJECT REPORT

ON

AT
UNICON SECURITIES PVT. LTD
Submitted in partial fulfillment of the degree
Of
MASTER’S OF BUSINESS ADMINISTRATION
SESSION (2007-2009)

SUBMITTED TO: - SUBMITTED BY:-

KURUKSHETRA UNIVERSITY, Sunny Gambhir
KURUKSHETRA. MBA (3rd semester)
Marketing/finance
College Roll no. –
4019
University Roll no. _

DOON VALLEY
INSTITUTE OF ENGG. & TECHNOLOGY KARNAL, HARYANA (Approved by
AICTE, Affiliated to Kurukshetra University, Kurukshetra)

1
 DECLARATION

I sunny Gambhir, student of MBA IInd Semester, studying at Doon

Valley Institute of Engineering and Technology, Karnal, hereby declare
that the summer training report on “DEMAT ACCOUNT” submitted to
Kurukshetra University, Kurkshetra in partial fulfillment of Degree of
Master’s of Business Administration is the original work conducted by
me.

The information and data given in the report is authentic to the best of my
knowledge.

This summer training report is not being submitted to any other

University for award of any other Degree, Diploma and Fellowship.

(Sunny
Gambhir)

2
 ACKNOWLEDGEMENT

It is my pleasure to be indebted to various people, who directly or

indirectly contributed in the development of this work and who
influenced my thinking, behavior, and acts during the course of study.

I express my sincere gratitude to Dr. Harish Abhichandani, worthy

Principal for providing me an opportunity to undergo summer training at
Unicon Investment Solutions

I am thankful to Mr. Sachin Arora, zonal head of unicon investment

Solution for his support, cooperation, and motivation provided to me
during the training for constant inspiration, presence and blessings.

I also extend my sincere appreciation to Mr. Vineet sachdeva (lecturer,

D.I.E.T) who provided their valuable suggestions and precious time in
accomplishing my project report.

Lastly, I would like to thank the almighty and my parents for their moral
support and my friends with whom I shared my day-to-day experience
and received lots of suggestion that improved my quality of work.

(Sunny
Gambhir)

3
 Table of Contents

S.No. Particulars Page

No.
1. COMPANY PROFILE OF UNICON INVESTMENT 1-19
SOLUTIONS

2. OBJECTIVES OF THE STUDY 20

3. INTRODUCTION TO DEMAT ACCOUNT 21-24

4. STUDY OF “DEMAT ACCOUNT PROCEDURE” 25-54

5. RESEARCH METHODOLOGY 55-59

6. DATA ANALYSIS & INTERPRETATIONS 60-70

7. LIMITATIONS OF THE STUDY 71

8. SUGGESTIONS AND RECOMMENDATIONS 72

9. BIBLIOGRAPHY 73

10. APPENDIX 74-76

ANNEXURE – 1 QUESTIONNAIRE

4
 INTRODUCTION TO UNICON INVESTMENT
SOLUTIONS

 MISSION AND VISION

 MANAGEMENT TEAM

 PRODUCTS AND SERVICES OFFERED BY

UNICON

5
 INTRODUCTION TO UNICON

Unicon has been founded with the aim of providing world class investing
experience to hitherto underserved investor community. The technology
today has made it possible to reach out to the last person in the financial
market and give him the same level of service which was available to
only the selected few.

Unicon gives personalized premium service with reasonable commission

on the NSE, BSE & DERVATIVES market through their equity broking
arm Unicon Securities private ltd. and commodities on NCDEX and
MCX through their Unicon Commodities Pvt Ltd. With their
sophisticated technology we can trade through our own computer and if
we want human touch we can also deal through our relationships
managers out of more than 100 branches.

Unicon also give personalized services on insurance (Life and General)

&Investments ( Mutual funds & IPO’S ) needs through their Insurance &
Investment distribution arm Unicon Insurance Advisors Pvt. Ltd. Their
tailormade customized solutions are perfect match to different financial
objectives. Their distribution network is backed by in house back office
support to serve their customers promptly

6
 MISSION AND VISION OF UNICON INVESTMENT
SOLUTIONS

MISSION:

To create long term value by empowering individual investors through

superior financial services supported by culture based on highest level of
team work, efficiency and integrity

VISION:

To provide the most useful and ethical investment solutions guided by

values driven approach to growth, client service and development

7
 MANAGEMENT TEAM OF UNICON INVESTMENT
SOLUTIONS

Founder& CEO: Mr. Gajender Nagpal

Mr Nagpal with his dynamic leadership brings vision to the company. A

management graduate by qualification, Mr. Nagpal brings with him over
14 years of experience in the stock market. Before joining Unicon he has
served at senior positions for 5 years with Kotak securities at a regional
level and Indiabulls securities for 4 years at national level assignments.
Mr. Nagpal brings with him the rich experience of building a retail
broking network.
He is a familiar face on the electronic media and is well respected in the
broking industry for his stock market expertise.

Co-Founder& President: Mr. Ram M Gupta

Mr. Gupta through his aggression and dynamism brings energy to the
team. He has 8 years of stock market experience behind him and is
responsible for driving the sales team. Mr. Gupta has held senior level
postions in Karvy stock broking and Indiabulls Securities. Mr. Gupta is
supported by a team of over 850 relationship mangers spread over 89
locations across the country

Chief Operating Officer: Mr. Sandeep Arora

Mr. Sandeep Arora brings with him over 11 years of experience of

managing operations of stock broking company. Mr. Sandeep Arora
before taking over as head of operations at Unicon was responsible for
managing the operations of Indiabulls Securities Ltd. Mr. Sandeep Arora
is supported by his team of over 400 people helping him to give world
class service to the clients.

8
Chief Financial Officer: Mr. Vikas Mallan

Mr Mallan A Chartered Accountant, Company Secretary and Cost

Accountant by profession. Mr. Mallan has over 14 years of experience in
the area of finance. Before joining Unicon he has served at senior level
positions with Rediff.com, Reliance Telecom and Koshika Telecom. His
experience includes a Nasdaq listing of an Indian internet company and
Head of Finance of a leading Law firm. Mr. Mallan is heading
Distribution / Mutual Fund initiative and is supported by around 1100
dedicated employees nationwide.

Chief Compliance Officer: Ms. Anjali Mukhija

Ms. Anjali Mukhija heads compliance. She brings with her 12 years of
experience in the stock markets. Her current job profile includes broking
operations, client relations & grievance redressal, coupled with Public
dealings. Prior to joining Unicon, she was with the National Stock
Exchange, Delhi Regional Office for 10 years and had held senior
position for a brief period in a reputed broking house.

National Head (E-Broking): Mr. Trinadh Kiran

Mr Trinadh Kiran is an MBA marketing professional from Aligarh

Muslim University and has done 10 months research in Capital Markets
from IIM-Ahmedabad. He brings with him a total work experience of 7
years and has worked with almost all big giants of capital market like
India Infoline, India Bulls and Net worth Stock Broking. He is associated
with Unicon since June 2005. He has extensive knowledge of Retail
Broking and expertise in E-Broking.

9
National Head (Business Alliances): Mr. Vijay Chopra

Mr. Vijay Chopra is a management graduate from Indian Institute of

Foreign Trade, New Delhi. He has a illustrious professional track record
of spanning over 11 years wherein he has handled various assignments at
a senior levels with some of the best names in the Consulting, FMCG &
healthcare space. His forte has been supply chain management, New
Product Launches, Sales, Marketing, Product management & Training.
Mr. Chopra along with his team handles over 300 business partner
network which is spread over the entire geographical spread of the
country.

Head-Priveleged Client Group: Mr. Ashish Kukreja

Mr. Ashish has the responsibility of handling PCG business with Unicon.
He brings with him a wide industry exposure and joined Unicon in July
2006 after rendering his services to Kotak Securities, where he was
taking care of franchisee business and later started handling HNI desk.
He is an MBA (finance) from ICFAI Business School.

Vice President-HR &Training: Ms. Deepa Mohamed

Ms Deepa Mohamed Sqn. Ldr.(Retd). Deepa Mohamed, pioneer as first

batch of women Officer in Indian Air Force is an Electronics &
Communications engineer from Netaji Subhas Institute of Technology
(Delhi). She has also undergone Aeronautical Engineering course from
AFTC, Bangalore and Post graduation specialization in Human Resource
Management from XLRI-Jamshedpur. She has 12 years of working
experience in personnel management and administration and is associated
with Unicon since September, 2006. She has been instrumental in setting
up Human resource and Training division. She has worked as an OD
consultant and her expertise lies in Organization development and change
management.

10
 PRODUCT & SERVICES OFFERED BY UNICON

Unicon deals with a numbers of products & services:

• Equity

• Commodity

• Depository

• Privileged Client Group

• Properties

• Distribution

• NRI Services

• Back Office

11
Equity

Unicon offers a unique feature of a single Screen Trading Platform of

NSE, BSE & Derivatives. Unicon offers both Offline & Online trading
platforms. You can Walk in or place your orders through telephone at any
of our branch locations

Online Trading Products:

• Unicon plus

• Unicon Swift

Unicon Plus

Browser based trading terminal that can be accessed by a unique ID and

password. This facility is available to all our online customers the
moment they get registered with us.

Unicon Swift

Application based terminal for active traders. It provides better speed,

greater analytical features & priority access to Relationship Managers.

12
Commodity

Unicon offers a unique feature of a single screen trading platform in

MCX and NCDEX.Unicon offers both Offline & Online trading
platforms. You can Walk in or place your orders through telephone at any
of our branch location Online commodity internet trading platform
through uniflex.

• Live Market Watch for commodity market (NCDEX, MCX) in one

screen

• Add any number of scrips in the Market Watch

• Tick by tick live updation of Intraday chart

• Greater exposure for trading on the margin available

• Common window for market watch and order execution

• Key board driven short cuts for punching orders quicklyon

• Real time updation of exposure and portfolio

• Facility to customize any number of portfolios & watchlists.

• Market depth, i.e. Best 5 bids and offers, updated live for all scripts

• Facility to cancel all pending orders with a single click

• Instant trade confirmations

• Stop-loss feature.

13
Depository

Unicon depositories services offers dematerialization services as a

participant in Central Depositry Services Limited (CDSL) through its
depository operations. The company believes in efficient and cost-
effective and integrated service support to its brokerage business. Unicon
Securities Private Limited, as a depository participant, will offer
depository accounts for individual investors as well as corporates which
will enable them to transact in the dematerialized segment, without any
hassles. Depository offers a safe, convenient way to hold securities as
compared to holding securities in paper form. Our service provides an
integrated single platform for all our clients ensuring a risk free, efficient
and prompt depository process.

Facilities Offered by Unicon

* De-materialization:

You can submit your physical shares at the Unicon branch for
dematerialization into electronic form.

* Re-materialization:

You can also request for Re-materialization which enables you to convert
the dematerialized shares into physical form.

14
* Transfer:

Inter and intra depository services are available through which you can
transfer shares.

IPO:

You can apply for IPO using your demat account details and on allotment
the securities are transferred directly to your demat account.

* Corporate Actions:

While holding your stock in demat account, in case you are eligible for
any bonus and rights issues the allotment would be transferred to your
demat account.

* Easi:

You can view your demat account over the Internet and avail a host of
services. This facility empowers our clients to view, download

Priveleged client group

We provide customer focused transparent investment planning and

solutions. We offer products which benefit your special status. PCG has a
specialized advisory team which nurtures all your investment. We ensure
that your investments work for you rather than you for them.

15
 Products offered by unicon

• Unicon Signature Account

• Nifty Tracker

• Unicon Trade Plus

• Stastical Arbitrage

• Unicon Wealth Planner

Properties

Unicon is a specialized property broking company. Our highly

experienced and professional teams present retail, office, industrial and
residential property opportunities to a broad base of clients. Whether it is
a residential or commercial development, Unicon offers a total solution to
our clients inclusive of market research, marketing strategy, interaction
with the professional teams and sales or leasing of the property.

Unicon’s professional team of consultants will assist you to identify

suitable premises that satisfy your requirements. We will help you
negotiate favorable leases and assist with the preparation of all
documentation.

“Whether you are looking for a home or a place to conduct business

Unicon shall find you one”

16
Distribution

Unicon is fast emerging as a leader in the Insurance and Mutual Funds

distribution space. Unicon has over 100 branches and a huge number of
“Business Development Executives” who help to source and service the
customers throughout the country. Unicon is fast becoming the preferred
“Vendor Independent” distribution houses because of providing efficient
service like free pick-up of collection of cheques/DD’s, Keeping track of
the premiums etc to its customers.

Unicon offers the following distribution products:-

IPO's

Mutual Funds

Insurance

17
IPO

At Unicon you can invest in the Primary markets (Initial Public

Offerings) online without going through the hassles of filling up any IPO
application forms or any other paperwork.

We shall make sure that you do not miss the opportunity to

subscribe/invest in a good IPO issue by providing you an online IPO
application form, transfer of funds online through secured payment
Gateways of leading banks like ICICI, HDFC, AXIS bank.

In addition to the above we shall provide you with the In-Depth analysis
of the IPO issues which shall be hitting the Indian Markets in near future,
IPO Calendar, analysis on the recent IPO listings, prospectus, offer
documents and other IPO research reports so as to help you take an
informed decision to invest in the IPO issues.

Online IPO facility is open to all our registered clients at no cost

whatsoever. All you need is the following to subscribe online to the IPO
issues

• A trading account with Unicon

• A Demat account with Unicon
• An access to the net banking facility with the Banks through which
Unicon has operational Gateway facility (ICICI, HDFC and AXIS
Bank).
• You must have signed a Power of Attorney (POA) agreement for
applying in IPO’s online

18
Mutual Funds

Unicon Provides expert advice to its clients for their investments in

equity & debt markets through Mutual Funds. Our experts advice you the
best investment solutions that suit you and help you to reach your
financial goals.
We help you ascertain your risk profile & guide you with the right
product mix which reduce your tax liability increase your savings &
enhance your wealth. Weather you have a conservative, medium or
aggressive investment risk appetite, our experts would guide you to build
a portfolio to optimize the return of interest.

Classification of Mutual Funds

• By structure

1. Open-ended Scheme
2. Close-ended Scheme
3. Interval Schemes

• By Investment objective

1. Growth Schemes
2. Income Schemes
3. Balanced Schemes
4. Money market Schemes

• By Other Schemes

1. Tax saving schemes

2. Special schemes
3. Index Schemes

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Insurance

General Insurance

Unicon offers all products of General Insurance under one umbrella.

Unicon comprises of a team of distinguished professionals from
insurance, finance and other management disciplines who have vast
business & managerial experience.

Unicon team evaluates the client's business environment and studies the
risk profile based on the results of these evaluations, Unicon team then
suggests the most cost effective , integrated insurance package that is
perfectly suited to the client's risk profile. Unicon has a nationwide
network of branches all over India, equipped with top quality
infrastructure facilities, to provide you prompt & efficient service.

Life Insurance

Unicon offers you a Peace of Mind by offering various life insurance

plans for your unique & specific needs. Our philosophy is that for every
financial problem, there is a solution also. And we are here to give you
complete financial solutions. At the same time we offer you very Prompt
& Reliable Policy related service for enduring relationship. We offer a
very wide range of products to fulfill your particular requirements. You
can always have an access to our 83 Branch Offices situated at prime
locations of the city, or you can call our Relationship Manager to guide
on your Investments.

20
Following is the glimpse of Life Insurance Plans

• Protection Plans

• Investment Plans

• Child Plans

• Retirement/Pension Plans

• Saving Plans

• NRI Plans

• Health Plans

NRI SERVICES

With India becoming the epicentre of growth the Global Indian feels the
need to be connected to the domestic growth story.

Unicon now offers a convenient and hassle-free way of Investing in the

Indian Securities Market to the people who are living outside India and
wish to participate in the Indian Growth story.

21
Procedure for NRI operations in Indian Capital Markets

• The NRI can deal with only one bank at any point of time

• The NRI He is allowed to invest only 5% of the paid up capital of

a company. The aggregate paid up value of equity of any company
purchased by all NRI's and OCBs cannot exceed 10 percent of the
paid up capital of the company and in the case of convertible
debentures, the aggregate paid up value of each series of
debentures purchased by all NRI's and OCBs cannot exceed 10 %
of the paid up value of each series of convertible debentures.

• He can enter only into delivery based trades; all deliveries must
only be routed through beneficiary accounts and not directly
through the broker.

• Shares bought by him cannot be sold unless the payout of the same
is received from exchange.

• All purchase and sale transactions have to be reported to the RBI

by the designated bank

• Original brokers contract notes have to be submitted to the

designated Bank branch, within 24 hours of the transaction.

• He will be required to make bill to bill payments/ settlements. No

adjustments of purchase against sale consideration should be done

• Shares cannot be bought against the shares sold in the same

settlement

22
 • All Purchase and Sales will be dealt separately for payments /
receipts

• Sale proceeds of any transaction not reported/approved by the RBI

is allowed to be credited to the NRE/NRO savings/demat account.
The transaction will have to be reversed in the account and losses
if any will be borne by the client.

• All tax liabilities arising out of buying and selling of securities will
be handled by the designated bank

Back Office

Unicon through its online back-office aims to increase the transparency

and provides you the link to view the details of your account online
anytime and anywhere.

Here you have the advantage of viewing the following reports online

• Sauda Details

• Financial Ledger

• Net position for the day

• Net position Detail (for the complete financial year)

• E-Contract Note

23
 OBJECTIVE OF THE STUDY

• The main objective of the study is to know about the potential of

the market regarding people’s dealing in share market.

• To know the role of DEMAT ACCOUNT .

• To know the procedure of opening DEMAT ACCOUNT.

• The objective is to know that how many people in the city are
aware of the UNICON SECURITIES PVT. LTD.

• To know where people have already opened their demat a/c and on
what basis.

24
25
 INTRODUCTION

The trading on stock exchanges in India used to take place through open
outcry without use of information technology for immediate matching or
recording of trades. This was time consuming and inefficient. This
imposed limits on trading volumes and efficiency. In order to provide
efficiency, liquidity and transparency, NSE introduced a nation-wide on-
line fully automated screen based trading system where a member can
punch into the computer quantities of securities and the prices at which
he likes to transact and the transaction is executed as soon as it finds a
matching sale or buy order from a counter party. Screen based electronic
system electronically matches orders on a strict price/time priority and
hence cuts down on time, cost and risk of error, as well as on fraud
resulting in improved operational efficiency. It allows faster
incorporation of price sensitive information into prevailing prices, thus
increasing the informational efficiency of markets. It enables market
participants, irrespective of their geographical locations, to trade with one
another simultaneous, improving the depth and liquidity of the market. It
provides full anonymity by accepting orders, big or small, from members
without revealing their identity, thus providing equal access to everybody.
It also provides a perfect audit trial, which helps to resolve disputes by
logging in the trade execution process entirety. The sucked liquidity from
other exchanges and in the very first year of its operation, NSE became
the leading stock exchange in the country, impacting the fortunes of other
exchanges and forcing them to adopt SBTS also. Today India can boast
that almost 100% trading take place through electronic order matching.

26
Now dematerialisation of shares is introduced “a new concept” which
converts paper based physical trading into electronic trading. It is a safe
and convenient way to hold securities. Screen based trading system helps
in faster transfer of securities and no stamp duty is required on transfer of
securities. The trading system operates on a strict price time priority. All
orders received on the system are sorted with the best priced order getting
the first priority for matching i.e. the best buy order match with the best
sell order. Orders are matched automatically by the computer keeping the
system transparent, objective and fair. The trading system provides
tremendous flexibility to the users in terms of kinds of orders that can be
placed on the system. The trading system also provides market
information online.
In order to promote dematerialization of securities, NSE joined hands
with leading financial institutions to establish the national securities
depository Ltd. (NSDL), the first depository in the country, with the
objective of enhancing the efficiency in settlement systems as also to
reduce the menace of fake/forged and stolen securities. This has ushered
in an era of dematerialised trading and settlement. SEBI has made
dematerialised settlement mandatory in an ever –increasing number of
securities in a phased manner, thus bringing about an increase in the
proportion of shares delivered in dematerialised form. There is an
increasing preference to settle trades, particularly in high value securities,
in demat form. Such high level of demat settlement reassures success of
rolling settlement.

27
 WHAT IS DEMAT

In India, a demat account, the abbreviation for dematerialised account, is

a type of banking account which dematerializes paper-based physical
stock shares. Conversion of Securities from Physical (Paper) Mode into
Electronic Mode is Called Dematerialisation. The Client opens Demat
Account with any DP. Upon Demat, the Certificates are destroyed and
credit entry of exactly equal number of Securities is created in Depository
in Electronic mode. The B.O. account of holder is credited and the
securities loose their identities. The dematerialised account is used to
avoid holding physical shares: the shares are bought and sold through a
stock broker.

This account is popular in India. The market regulator, securities and

exchange board of India (SEBI) mandates a demat account for share
trading above 500 shares. As of April 2006, it became mandatory that any
person holding a demat account should possess a permanent account
number (PAN), and the deadline for submission of PAN details to the
depository lapsed on January 2007.

Dematerialisation is the process by which physical certificates of an

investor are converted to an equivalent number of securities in electronic
form and credited in the investor's account with its DP. In order to
dematerialize certificates; an investor will have to first open an account
with a DP and then request for the dematerialisation of certificates by
filling up a dematerialisation request form [DRF], which is available with

28
the DP and submitting the same along with the physical certificates. The
investor has to ensure that before the certificates are handed over to the
DP for demat, they are defaced by marking "Surrendered for
Dematerialisation" on the face of the certificates.

ACCOUNT OPENING

To avail the services of a depository an investor is required

to open an account with a depository participant of any
depository.

PROCEDURE FOR OPENING AN ACCOUNT

A demat account are opened on the same lines as that of a Bank Account.
Prescribed Account opening forms are available with the DP, needs to be
filled in. Standard Agreements are to be signed by the Client and the DP,
which details the rights and obligations of both parties

• The DP officials will make available the relevant account opening

form (depending on whether the client is a retail investor or
corporate client/clearing member) and specify the list of
documents regarding references that should be submitted along
with the form. It will also give a copy of the relevant agreement to
be entered with the client, in duplicate.

• The client will submit the duly filled in account opening form and
client has to visit personally for opening the account in DP. The DP

29
 officials have to do in person verification and affix the “IN
PERSON VERIFICATION” stamp on the account opening form. It
should also furnish such documents regarding references, as
specified by the DP, along with the account opening form. After
executing the agreement the client has to forward it to the DP.

• The DP officials will verify that the account opening form is duly
filled in. It will also verify the enclosed documents, if any.
Incomplete forms will be forwarded to the client for rectification.

• For Corporate Clients, the DP officials will verify if the board

resolution for the authorized signatories is enclosed.

• In case the documents are not proper, the DP officials will reject
the form and intimate the client of the same, stating the reasons for
doing so.

• If the form is in order; the DP officials will accept the same and
affix the stamp “verified with original” on each and every proof
after seeing the original proofs.

• After completion of all documentation, the DP officials will verify

the pan from income tax website. And affix the stamp “PAN
VERIFIED” with date and sign on the stamp.

• The DP officials will enter the client details as mentioned in the

account opening form in the DPM (software provided by NSDL &
CDSL to the Participant) screen provided for the purpose. In case
of NSDL A/c opening the SR. Assist will capture all the details in
the DPM and record the client’s signature (on the form) as
specimen for authorizations in the future.

• After entering client details in the system, a client account number

will be generated by the DPM. The DP officials will enter this in
the account opening form. After that the officers will verify the

30
 details in the DPM captured by the SR. Assist. and activate the
account.

• The DP officials are not allowed to give the demat a/c no to the
clients until the a/c is activate, this is applicable for both NSDL &
CDSL.

• When the demat a/c is activated the DP officials have to send the
client master and the copy of agreement between DP and client at
the client’s address

The account holder is called 'beneficial owner' in a depository system and

the account is known as 'beneficiary account'.

Features of Beneficary Account·

• No minimum balance is required to be retained in a beneficiary

account.
• An investor can close a beneficiary account with one DP and open
an account with another DP.
• To dematerialise existing physical holdings, the beneficiary
account must be opened in the same ownership pattern in which
the securities are held in the physical form e.g.,if one certificate is
in individual name and another certificate is jointly held by X & Y,
two different accounts should be opened. However, in case of joint
holders, securities can be dematerialised in the same account even
though share certificates are in different sequence of names e.g.,
shares held in joint names of X & Y can also be dematerialised in
an account opened in the names of Y & X as well by submitting an
additional form (Transposition Form) alongwith Demat Request

31
 Form to the DP.However, shares held jointly by X & Y cannot be
dematerialised in an account opened in the name of only X or only
Y or any

DOCUMENTS SHOULD BE REQUIRED FOR DEMAT

ACCOUNT

.
Proof of Identity (POI):

• Passport
• Voter ID card
• Driving license
• PAN card with photograph
• Identity card with applicant’s photograph issued by
1. Central or state government and its department
2. Statutory/regulatory authorities
3. Public sector undertakings
4. Scheduled commercial banks
5. Public financial institutions
6. College affiliated to universities

Proof of Address (POA):

• Ration card
• Passport
• Voter ID card
• Driving License
• Bank passbook
• Verified copies of :
1. Electricity bills (not more than 2 months old)

32
2. Residence landline telephone bill (not more than 2 months old)
3. Leave & license agreement/agreement to sell (duly attested)
4. Self declaration by supreme court/high court judges, giving the new
address in respect of their own accounts.

• Identity card with applicants photograph issued by

Central or state government and its department

1.
Statutory/regulatory authorities
2.
Public sector undertakings
3.
Scheduled commercial banks
4.
Public financial institutions
5.
College affiliated to universities.
6.
• Passport-size photograph
• Copy of PAN card along with original PAN card for verification

Bank details:

• Copy of cancelled cheque with printed name from the bank.

• Copy of bank passbook with name and address and copy of

cancelled cheque.

• Bank statement with name and address (duly authorized by the

bank, if statement is on plain paper) not more than 4 months old
and copy of cancelled cheque of MICR & bank detail verification.

In case of minor

• Date of birth certificate duly notarized

• Proof of address and identity documents of the guardian both
minor and guardian’s photograph and guardian to sign across both
photographs
• PAN card of minor as well guardian is mandatory

33
In case of NRI

• Foreign address and RBI approval date attested copy of RBI

approval
• NRO-Indian address alonwith proofs
• Bank account details

In case of joint holdings

In case of joint holdings, POI and POA documents alongwith PAN card
must be submitted in respect of all account holders. Original documents
must be taken to the DP for verification.

The DP will also provide a copy of the DP-Client agreement.

Account opening form require the applicants to give the following

details:

• (a) Name(s) of account holder(s) -The investor should ensure that

the name is identical to that which appears on the certificate(s) to
be dematerialised. In case of joint holdings, account may be
opened in any one combination, irrespective of the sequence in
which names are appearing on share certificates. Investors are
advised to open their account in their fully expanded name, i.e., to
spell to the first name as well as the middle name. This would
obviate any doubts about the veracity of the information.

• (b) Mailing and communication address(es) - The veracity of the

applicant's address is determined through the documents submitted

34
 for verification like ration card, passport, voter ID, PAN card,
driving license, bank passbook, etc. For NRI accounts, proof is
required for both addresses - that of the account holder as well as
the constituted attorney. For corporate accounts, a copy of
Memorandum of Association, Articles of Association, Board
resolution permitting opening of account, the registered address of
the company have to be furnished.

• (c) Details of guardian in case account holder is a minor -Only a

guardian can open a depository account for a minor. The guardian
is required to sign the application form, and details of his name and
address need to be given in addition to the details of the minor.

• (d) Foreign Address and RBI approval details for NRI, FII or
OCB accounts -For foreign-based applicants like NRIs, Flls,
OCBs, etc., the applicant must furnish original or attested copies of
the power of attorney and the approval letter from RBI permitting
them to invest, as the case may be.If the account holder is an FII or
an OCB, SEBI registration details along with attested copy of
registration certificate issued by SEBI and authorisation letter is
required.

• (e) Details of bank account -Details of bank account of the

account holder, including the nine digit code number of the bank
and branch appearing on the MICR cheques issued by the bank
have to be filled in the application form. Companies use this
information for printing them on dividend/interest warrants etc.

• (f) Nomination declaration - A beneficial owner can make a

nomination of his account in favour of any person by filing the
nomination form with his DP. Such nomination is considered to be
conclusive evidence of the account holder'(s) disposition in respect
of all the securities in the account for which the nomination is
made.

35
 • (g) Standing Instruction - a facility of standing instruction is
provided to the investors for receiving securities to the credit of
their accounts without giving a separate receipt instruction.

The demat account cannot be operated on "either or survivor" basis

like the bank account. In case of the joint account for the beneficial
owners, all the joint holders have to sign the account opening form.

The investor will submit to his DP the duly filled in account opening
form & DP-client agreement along with the documents.

The DP will verify whether the account opening form has been duly
filled in or not. He will also verify the submitted documents. For
corporate investors, the DP will also verify whether the board resolution
for the authorized signatories has been enclosed. The DP will ensure that
client's signature is recorded on the form which will serve as specimen
for authorizations in future.

If the application form and documents are in order, then the DP will
accept them and give an acknowledgement slip duly signed and stamped
to the client. The DP will execute the agreement and give a copy of it to
the client.

After completion of all documentation, the DP will enter the client

details as mentioned in the account opening form in the DPM (software
provided by NSDL to the DP) screen provided for the purpose. After
entering client details in the system, a client account number will be
generated by the DPM. The DP will enter this in the account opening
form.

On successful opening of the account, the DP will give:

• Client Id - an eight digit number to be used along with DP Id for

any future transactions.
• Delivery Instruction slip book.
• A copy of the report listing the client details captured in the DPM
database to the client. The report will be generated by the DPM.

36
 PREREQUISTIES FOR DEMATERIALISATION
REQUEST

1. The registered holder of the securities should make the request.

2. Securities to be dematerialised must be recognised by NSDL/CDSL as

eligible. In other words, only those securities whose ISIN has been activated
by NSDL/CDSL, can be dematerialised.

3. The company/issuer should have established connectivity with

NSDL/CDSL. Only after such connectivity is established that the securities
of that company/issuer are recognized to be "available for
dematerialisation".

4. The holder of securities should have a beneficiary account in the same name
as it appears on the security certificates to be dematerialised.

5. The request should be made in the prescribed dematerialisation request

form.

37
 REASONS FOR DEMATERIALISATION REQUEST
REJECTION

1. The quantity of shares mentioned in the DRF is more than the actual
certificates sent.

2. The quantity of shares mentioned in the DRF is less than the actual
certificates sent.

3The certificates sent are fake.

4. The certificates sent are reported Stolen.

5. Original certificates present are those for which the duplicates have
already been issued.

6. Endorsements on the certificates are forged.

7. Securities stand on a different name than those mentioned in the DRF.

8. The details mentioned on the certificates do not match with the details
on the DRF, or the order of the holders name on the DRF is different
from the names given on the certificates. The scrutiny by the DP is
incomplete.

9. The securities attached / DRF does not pertain to the R&T Agent to
whom the DRF is sent.

10. Electronic request received but physical certificates are not received
with in 15 days.

38
11. Specimen Signature on the DRF differs from the signatures recorded
with the Registrar / Transfer Agents.

12. The certificates sent have a court injunction against them

Precautions:

• Corporate investors to enclose Memorandum of Association/Trust

deed/Board resolution for the authorized signatories along with the
account opening form.
• Details with respect to the bank account details of an investor must
be indicated in the space provided for the same in the account
opening form.
• If an investor is interested in availing the facility of standing
instructions for credits to his account, then such instructions may
be given to the DP. Otherwise, he will need to give a receipt
instruction to his DP for receiving credits to his account.

BENEFITS OF DEMATERIALISATION

• No stamp duty for transfer of securities in the Depository System.

In the case of physical shares, stamp duty of 0.25% of sale value
is payable on transfer of shares.

• Elimination of bad deliveries and all risks associated with physical

certificates such as loss in transit, theft, mutilation, damage, etc.

• Facility for freezing/locking of investor accounts to make it non-

operational for specified period.

• Instead of filling up transfer deed(s) a simpler form is to be given

`to the DP.

• Facility to pledge and hypothecate securities. Pledging

Dematerialised securities is easier and advantageous as compared

39
 to pledging physical shares. In respect of shares in "compulsory
Demat" category, banks prefer to lend against shares held in
electronic form, and offer better terms.

• Odd lots are not differentiated in the electronic system. Even a

single share can be traded at the market rates without any
reduction in realisation.

• Just like a bank branch, the DP will give a periodical statement of

account of holdings. In addition, investor can obtain a statement
of holdings as and when required for a fee.

• In case investor loses the statement of holdings, he can inform his

DP and obtain a duplicate statement. Investor's statement of
holdings cannot be used by anybody else for trading in his
account.

• When an investor opens an account with a DP, he signs an

agreement with the DP in which the DP will indemnify the
investor for any mis-use of his holdings. The depository will also
ensure thatthe interests of the investor are protected. Grievances,
if any, against his DP will be resolved by the Depository.

• Every transaction in investor's account will have to be authorised

by him, which ensures total control of the investor over his
investment

• A safe and convenient way to hold securities and there is

immediate transfer of securities.

• Change in address recorded with DP gets registered with all

companies in which investor holds securities electronically
eliminating the need to correspond with each of them separately.

• Reduction in paperwork involved in transfer of securities and

Reduction in transaction cost

• Automatic credit into demat account of shares, arising out of

bonus/split/consolidation/merger etc.

40
 DEMAT PROCESS

1. The registered holder of the securities makes the request.

2. Securities must be recognised by Depository as eligible.

3. Client submits DRF & physical certificates to DP. DP checks

securities.

4. Client defaces certificates and DP punches two holes on name of

company.

5. DP enters demat request in system for Depository.

6. DP dispatches certificates along with DRF to R&T.

7. Depository records the details and sends to R&T.

8. R&T agent verifies the details and confirms to Depository.

9. Depository credits the demat securities to BO a/c of client and

intimates DP electronically.

10.DP issues statement to client.

41
 DEMAT -PROCESS

Demat Process:

Shareholders With Physical Certificate

Depository Shareholder goes to DP with his

physical share certificates
Participants

Shareholder opens his account

Account Opening with DP.

Demat Request Shareholder fills DRF in

duplicate, defaces the shares
Form (DRF)
and hands over to DP

The DP sends R&T Depository DP sends information

Share certificates electronically to Depository
Agent
to R&T agent for
dematerialisation
Dematerialisation Upon confirmation of Demat by
R&T Agent, the Depository
confirms Dematerialisation.

Credit to the BO
A/c. of the Investor

42
 INFORMATION NEEDED FOR DEMAT ACCOUNT

An investor has to give his bank account details at the time of account
opening. It is for the protection of investor’s interest. The bank account
number will be mentioned on the interest or dividend warrant, so that
such warrant cannot be encashed by any one else. Further, cash corporate
benefits such as dividend, interest will be credited to the investors
account directly through the ECS (Electronic Clearing Service) facility,
wherever available, by the company.

An investor can change the details of his bank account. Since in the
depository system monetary benefits on the security balances are paid as
per the bank account details provided by the investor at the time of
account opening, the investor must ensure that any subsequent change in
bank account details is informed to the DP.

An Investor should immediately inform his/her DP if the address of

the investor changes, who in turn will update the records. This will
obviate the need of informing different companies.

An investor can open more than one account in the same name with
the same DP and also with different DPs.
An investor has not to keep any minimum balance of securities in his/her
accounts. Depository / DP can be chosen by investor as per convenience
irrespective of the DP of the broker.
The demat account must be opened in the same ownership pattern such as
securities owned individually in which the securities are held in the
physical form. e. g. if one share certificate is in the individual name and
another certificate is jointly with somebody, two different accounts would
have to be opened.

43
 WHAT IS DEPOSITORY AND DEPOSITORY
PARTICIPANT

Depository can in many ways be compared to a bank. Securities of the

investors are held in electronic / book entry form by the Depository.
Apart from holding the securities, Depository also provides services
related to transactions in securities.

In India, a Depository Participant (DP) is described as an agent of the

depository. They are the intermediaries between the depository and the
investors. The relationship between the DPs and the depository is
governed by an agreement made between the two under the Depositories
Act. In a
Strictly legal sense, a DP is an entity who is registered as such with SEBI
under the provisions of the SEBI Act.

Think of it like a bank. The head office where all the technology rests and
details of all accounts held is like the depository. And the DPs are the
branches that cater to individuals.

At present two Depositories viz. National Securities Depository Limited

(NSDL) and Central Depository Services (I) Limited (CDSL) are
registered with SEBI

44
NATIONAL SECURITIES DEPOSITORY LIMITED (NSDL)

NSDL was the first depository organization promoted by IDBI, UTI, and
National Stock Exchange (NSE). NSDL was set up to provide electronic
depository facilities for securities being traded in capital market. The
depositories ordinance was promulgated by the Government of India in
September 1995. The Securities and Exchange Board of India (SEBI)
issued guidelines for depositories in May, 1996.

NSDL has minimum net worth of Rs 100 crores. NSDL deals with shares
in dematerialized form through depository participants who are agents of
investor banks, stockbrokers and financial institutions. NSDL Depository
Participant can be a public financial institution, bank, custodian,
registered stockbroker or a non-banking financial company subject to the
approval from the Depository Company and SEBI. NSDL aims at
ensuring the safety and soundness of Indian capital market by
developing settlement solutions that increase efficiency, minimize risk
and reduce costs.

45
CENTRAL DEPOSITORY SERVICES (INDIA) LIMITED (CDSL)

CENTRAL DEPOSITORY SERVICEES LIMITED (CDSL) is second

depository in India, is set up to meet the objective the Act & to fulfill the
user’s need. CDSL is secured “Certificate of Commencement” of
business on Feb 8, 1999 from SEBI. The balances in the investors’
account recorded and maintained with CDSL can be obtained through the
DP. The DP is required to provide the investor, at regular intervals, a
statement of account, which gives the details of the 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. CDSL offers an efficient and instantaneous
transfer of securities.

CDSL was promoted by Bombay Stock Exchange Limited (BSE) jointly

with leading banks such as State Bank of India, Bank of India, Bank of
Baroda, HDFC Bank, Standard Chartered Bank, Union Bank of India and
Centurion Bank. Each and every activity of CDSL stem from the
essential reason behind forming this depository, i.e. to encourage India's
individual investors to benefit from actively participating in a depository.

46
Services provided by Depository system

• Dematerialisation (usually known as demat) is converting physical

certificates to electronic form.

• Rematerialisation, known as remat, is reverse of demat, i.e. getting

physical certificates from the electronic securities.

• Transfer of securities, change of beneficial ownership

• Settlement of trades done on exchange connected to the Depository

• Pledge / Hypothecation of demat shares, viz. Loan against shares

• Electronic credit in public offering of the Companies

• Non - Cash corporate benefits, viz. Bonus / Rights - direct credit

into electronic form

• Depository restrict the risk of fraud

47
 The charges for account closure and securities transfer due
to account closing.

SEBI vide Circular No. MRD/DoP/Dep/Cir-22 /05 dated November 09,

2005 advised that with effect from January 09, 2006, no charges shall be
levied by a depository on DP and consequently, by a DP on a Beneficiary
Owner (BO) when a BO transfers all the securities lying in his account to
another branch of the same DP or to another DP of the same depository
or another depository, provided the BO Account/s at transferee DP and at
transferor DP are one and the same, i.e. identical in all respects. In case
the BO Account at transferor DP is a joint account, the BO Account at
transferee DP should also be a joint account in the same sequence of
ownership.

All other transfer of securities consequent to closure of account, not

fulfilling the above-stated criteria, would be treated like any other
transaction and charged as per the schedule of charges agreed upon
between the BO and the DP.

Freeze or lock of an account

Investors can freeze or lock their accounts for any given period of time, if
so desired. Accounts can be frozen for debits (preventing transfer of
securities out of accounts) or for credits (preventing any movements of
hindrances into accounts) or for both.

48
 Trading / Settlement

Traditionally settlement system on Indian stock exchanges gave rise to

settlement risk due to the time that elapsed before trades were settled by
physical movement of certificates. The process of physical moving the
securities from seller to his broker to clearing corporation to the buyer’s
broker and finally to the buyer took time with the risk of delay
somewhere along the chain. Now depository holds securities in
dematerialised form. The procedure for buying and selling dematerialised
securities is similar to the procedure for buying and selling physical
securities. The difference lies in the process of delivery (in case of sale)
and receipt (in case of purchase) of securities.

In case of purchase:-

• The broker will receive the securities in his account on the payout
day
• The broker will give instruction to its DP to debit his account and
credit investor's account
• Investor will give ‘Receipt Instruction to DP for receiving credit by
filling appropriate form. However one can give standing
instruction for credit in to ones accounts that will obviate the need
of giving Receipt Instruction every time.

In case of sale:-

The investor will give delivery instruction to DP to debit his account and
credit the broker’s account. Such instruction should reach the DP’s office
at least 24 hours before the pay-in as other wise DP will accept the
instruction only at the investor’s risk.

49
 'Standing Instruction' given in the account opening form

In a bank account, credit to the account is given only when a 'pay in' slip
is
submitted together with cash/cheque. Similarly, in a depository account
'Receipt in' form has to be submitted to receive securities in the account.
However, for the convenience of investors, facility of 'standing
instruction' is given. If you say 'Yes' for standing instruction, you need
not submit 'Receipt in' slip everytime you buy securities. If you are
particular that securities can be credited to your account only with your
consent, then do not say 'yes' [or tick ] to standing instruction in the
application form.

Delivery Instruction Slip (DIS) and the precautions which

one need to observe with respect to Delivery Instruction
Slips

To give the delivery one has to fill a form called Delivery Instruction Slip
(DIS). DIS may be compared to cheque book of a bank account. The
following precautions are to be taken in respect of DIS:-

• Ensure and insist with DP to issue DIS book.

• Ensure that DIS numbers are pre-printed and DP takes
acknowledgment for the DIS booklet issued to investor.
• Ensure that your account number [client id] is pre-stamped.
• If the account is a joint account, all the joint holders have to sign
the
instruction slips. Instruction cannot be executed if all joint holders
have not signed.
• Avoid using loose slips.
• Do not leave signed blank DIS with anyone viz., broker/sub-
broker.
• Keep the DIS book under lock and key when not in use.

50
 • If only one entry is made in the DIS book, strike out remaining
space to prevent misuse by any one.
• Investor should personally fill in target account -id and all details
in the DIS.

It is possible to give delivery instructions to the DP over Internet .Both

NSDL and CDSL have launched this facility for delivering instructions to
your DP over Internet, called SPEED-e and EASI respectively. The
facility can be used by all registered users after paying the applicable
charges.

Lending and borrowing of demat securities

If any person required to deliver a security in the market does not readily
have that security, he can borrow the same from another person who is
willing to lend as per the Securities Lending and Borrowing Scheme.
Lending and borrowing has to be done through an 'Approved
Intermediary' registered with SEBI. The approved intermediary would
borrow the securities for further lending to borrowers. Lenders of the
securities and borrowers of the securities enter into separate agreements
with the approved intermediary for lending and borrowing the securities.
Lending and borrowing is affected through the depository system.
You can lend your securities through Approved Intermediaries registered
with SEBI.

One can lend his/her demat seurities by entering into an agreement with
the approved intermediary to be a lender under this scheme. After that,
you may lend securities any time by submitting lending instruction to
your DP.
Intermediary may return the securities at any time or at the end of the
agreed period of lending. Intermediary has to repay the securities
together with any benefits received during the period of the loan.
One can receive the corporate benefits which would accrue on these
securities during the period of lending.The benefits will be given to the
Intermediary/borrower. However, whenever the securities are being
returned / recalled. Intermediary/borrower will return the securities
together with benefits received.

51
 PHYSICAL SEGMENT

Change in Name / Status

- All requests for change of name should be accompanied by a copy
of the notification in Official Gazette or a Newspaper.

- Request for change of name consequent upon marriage/divorce

should be accompanied with marriage certificate/divorce decree.

- For effecting change of status from minor to major, please send

proof of age (such as attested copy of Birth Certificate or School
Leaving Certificate)

- In the case of limited companies, a certified copy of the Certificate

of Incorporation consequent to Change of Name issued by the
Registrar of Companies should be submitted along with
Memorandum & Articles of Association

- The new specimen signature duly attested by holder's banker

should be lodged with the Company to take on record the new
signature.

Change of Address
Please inform the R&TA viz Integrated Enterprises (India) Limited
immediately if there is any change in address, quoting Folio No. Duly
signed by the main (1st) holder as per specimen signature recorded with
us. This is the reason for which we would advise you not to send change

52
of address request by mail. If shares are held in demat form, please
advice your DP regarding change of address.

Loss of Share Certificates

Any communication to the Company regarding loss of share certificates
should always be signed by the shareholder as per specimen signature
registered with the Company, accompanied by FIR lodged with local
police station giving full details of lost certificate(s) such as certificate(s)
Nos., Distinctive Nos. etc.

- Please immediately apply for injunction order in appropriate Court of

Law for stopping transfer, giving full details of Certificate Nos.,
Distinctive Nos. etc.

- Upon receipt of such communication, the procedure to be followed for

obtaining duplicate share certificates will be advised

Nomination
Nomination when shares are held in physical form

Nomination will enable smooth inheritance of ownership of the shares by

the Nominee without any procedural difficulties. (Presently, there is no
difficulty where shares are registered in joint names. But if the shares are
held in an individual name, addition of a joint name can only be done as a
transfer, involving share transfer form, stamp duty, surrender of original
certificates etc. Following the nomination procedure eliminates all this
inconvenience). Therefore, if shares are held in a single name, , with the
intention of holding them for some more time, then please advise
nomination immediately without delay

53
Following Instructions for the Nomination

1. Nomination can be made only by individuals, holding shares on

their own behalf singly or jointly. Non-individuals including
society, trust, body corporate, partnership firm, Karta of Hindu
Undivided Family, holder of power of attorney cannot nominate.
If the shares are held jointly, all joint holders must sign the
nomination form.
2. A minor can be nominated by a holder of shares and in that event
the name and address of the Guardian must be given by the holder.
3. The nominee shall not be a trust, society, body corporate,
partnership firm, Karta of Hindu Undivided Family or a power of
attorney holder. A non-resident Indian can be a nominee on
repatriable basis.
4. Nomination will stand cancelled upon transfer of shares.
5. The Company will be fully discharged from its responsibility
towards the legal heirs of a shareholder, if the shares are
transmitted as per the nomination filed with the company, without
any further reference to the legal heirs of a deceased individual
shareholder(s)
6. Where the space provided in the Form is not sufficient,
shareholders are requested to attach separate sheet(s) giving
details of distinctive nos. of shares.
7. The Nomination Form should be filed in duplicate with the
Company, who will return one copy thereof to the shareholder.
8. Although Form 2B as prescribed does not provide for specimen
signature of nominee, this has been suggested in order to facilitate
smooth transmission of title to the nominee when the need arises.
9. Please note that if physical shares are subsequently converted into
electronic form, any nomination already filed will cease to have

54
 effect; the nomination details furnished to the Depository
Participant will prevail thereafter

ISIN

 International Securities Identification Number (ISIN)

Each of the securities dematerialised in the NSDL depository bears a

distinctive ISIN – an identification number. International Securities
Identification Number (ISIN) is a unique identification number for each
security issued in any of the International Standards Organisation (ISO)
member countries in accordance with the ISIN Standard (ISO 6166). ISO
6166 was developed for use in an international (cross-border) as well as
domestic trades. ISIN is a 12-character long identification mark. It has
three components - a pre-fix, a basic number and a check digit. The pre-
fix is a two-letter country code as stated under ISO 3166 (IN for India).
The basic number comprises nine alphanumeric characters (letter and/or
digits). The check digit at the end of the ISIN is computed according to
the modulus 10 "Double-Add- Double". It establishes that the ISIN is
valid.

Securities issued by the same company, issued at different times or

carrying different rights, terms and conditions are considered different
securities for the purpose of allocating ISIN and are allotted distinct
ISINs. In India, SEBI assigns ISIN to various publicly traded securities.
Different ISINs are allocated to the physical and dematerialised securities
of the same issue.

55
SEBI being the national numbering agency for India has permitted NSDL
to allot international securities identification number (ISIN) for demat
shares. The ISINs allotted by NSDL does not at any point of time breach
the uniqueness of ISIN of physical form for the same security. ISIN for a
security is allotted when the security is admitted to NSDL. The
numbering system is simple. The numbering system of ISIN is in
compliance with the structure of ISIN adopted by SEBI.

International Securities Identification Number:

1. Issued by International Standards Organisation (ISO) member

countries in accordance with ISO 6166.
2. ISIN is 12 digit alpha numeric number.
3. It has three components, prefix, basic & check digit.
4. Prefix is a two letter country code i.e. IN for India.
5. The basic number has nine alpha numeric characters.
6. The last digit is check digit. It ensures the ISIN is valid.

Numbering system of ISIN

The numbering structures for securities in NSDL is of 12 digit alpha

numeric string. The first two characters represent country code i.e. IN(in
accordance wirh ISO 3166). The third characters represents the issuer
type as detailed below:

56
 Issuers type

Issuer type code allotted

Central government A

State government B

Municipal corporation C

Union territories D

Company, statutory corporation, E

Baking company

Mutual funds including UTI F

The list may be expanded per the needs. Maximum issuer types can be 35
(A to Z and 0 to 8. the pro-rata dividend shares are identified by 9). The
next 4 characters (fourth to seventh character) represent company
identity. The first 3 characters are numeric. The fourth character is alpha
character. The numbering begins with ‘001A’ and continues till ‘999A’
and proceeds to ‘001B’. the next two characters (the eight and ninth
characters) represent security type for a given issuer. Both the characters
are numeric. The next two characters (the tenth and eleventh characters)

57
are serially issued for each security of the issuer entering the system. Last
digit is double-add-double check digit.

The security types are planned which may be expanded as per the need as
detailed below:-

Security type code

Equity 01

Non voting equity 02

Convertible preference shares 03

Non convertible preference shares 04

Mutual fund units –close ended 05

Mutual fund units-open ended 06

Secured debentures 07

Unsecured debentures 08

Regular return bonds-promissory notes 09

Floating rate bonds 10

Deep discount bonds 11

Step discount bonds 12

58
Warrants 13

RESEARCH METHODOLOGY

Research methodology refers to the search for Knowledge. It is a way to

systematically solve the research problem. In it we study the various
steps that are generally adopted by the researcher in studying his research
problem along with logic behind them.

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

Though there are more than one alternative approaches available to the
researcher, but this not enough to make the task of selecting the suitable
research design simpler. Like the so-called suitable research design may
require some in between approach. The objective of study being the main
determinant of the validity and reliability of the method adopted the
degree of usefulness of the scientific method. Since there are many
aspects of research methodology, in line of action has to be chosen from
variety of alternatives, so that individual choice of suitable method is
further complicated and make a viable whole. The choice of suitable
method is further complicated by the possibility of many permutations
and combinations. The fair selection can be arrived at through the
objective assessment and of course comparison of various alternatives.
The finally selected line of action must ensure that this is indeed best one
as against those rejected by the researcher. in addition, the circumstances

59
and problems also having a bearing in the choice. To count a fem,
limitations could be imposed in the sense of funds available, time and
urgency in conducting the research. So the final choice must be based on
assessment of its advantage and disadvantages when weighted against
affecting factors.

Research methodology can be said to have four major components

namely-Research design, Sample design, Data collection procedure and
methods of analyzing and reporting the findings.

Research Design

The research problem having been formulated in clear cut terms, the
researcher will be required to prepare a research design i.e., he will have
to state the conceptual structure with in which research would be
conducted. The preparation of such a design facilitates research to be as
efficient as possible yielding maximal information. But how all there can
be achieved depends mainly on the research purpose. Research purpose
may be grouped into four categories.

(1) Exploration
(2)Description
(3) Diagnoses and
(4) Experimentation.

Exploratory research studies are those whose main purpose is that of

formulating a problem for more precise investigation or of developing the
working hypotheses from on operational point of view.

Descriptive research studies are those studies which are concerned with
describing the characteristics of a particular individual, or of a group

Diagnostic research studies determine the frequency with which

something occurs.

Experimental research studies are those where the researcher tests the
hypothesis of casual relationship between the variables.

60
Research design of this particular research study of dematerialization of
shares is primarily based on descriptive and diagnostic research design.
As descriptive and diagnostic research design describes the
characteristics and determines the frequency with which something
occurs respectively, similarly this research determines the characteristics
of the individuals who deal in share and also determine the frequency of
dealing on the basis of their characteristics.

Sample Design

All the items under consideration in any field of inquiry constitute a

‘Universe’ or ‘Population’. A complete enumeration of all the items in
the population is known as a census inquiry. This type of inquiry involves
a great ideal of time, money and energy. Hence quite often a few items so
selected constitute what is technically called a sample.

The researcher must decide the way of selecting a sample or what is

popularly known as sample design. A sample design is a definite plan
determined before any data are actually collected for obtaining a sample
from a given population. Samples can be either probability or non-
probability samples. With probability samples each element has a known
probability of being included in the sample but non-probability samples
are those based on simples do not allow the researcher to determine this
probability.

Probability samples are those based on simple random sampling,

systematic sampling , etc where as non probability samples are those
based on convenient sampling, judgment sampling etc.

61
 Data collection techniques

The required data is collected both from primary as well as

secondary sources.

Primary Sources: The primary data was collected through

structured unbiased questionnaire and personal interviews of
investors. For this purpose questionnaire included were both open
ended & close ended & mulple-choice questions.

Secondary Sources: Secondary data is the data, which is

collected and complied for different purposes, which are
used in research for this study. The secondary data includes
material collected from:-

Megazines & Bulletines- Brochure of unicon investment solutions.

Internet-
www.sebi.gov.in
www.nseindia.com
www.uniconindia.in

SIZE OF SAMPLE

62
The overall sample involved in the study consisted of 50 individuals.
Keeping in view the limited resources of time, a limited sample of
individuals. It was fixed before hand and every effort was made to cover
the given number of individuals with available time for the collection of
data for this project. The data was collected with the help of the
questionnaire herself by the researcher.

Method used for analysis of study

The methodology used for this purpose is Survey and 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.

Analysis of Data

After the data have been collected, the researcher turns to the task of
analyzing them. The analysis of data requires a number of closely related
operations such as establishment of categories, the application of these
categories to raw data through coding, tabulation and then drawing
statistical inferences. The unwisely data should necessary be condensed
into a few manageable groups and tables for further analysis. Thus
researcher should classify the raw data into some purposeful and usable
categories. In the process of analysis, relationships or differences
supporting or conflicting with original or new hypotheses should be
subjected to tests of significance to determine with what validity data can
be said to indicate any conclusion

63
Interpretation

The interpretation is done on the basis of the analyzed data and also some
recommendations are given to fill the loopholes of the actual scenario.

DATA ANALYSIS AND

INTERPRETATION

Research is conducted for finding the solution of the problem. So to find

the solution of the problem data analysis and interpretation is must. There
are some questions related to this research to interpret the result.

The sample size in this study consisted of 50 individuals and data

analyzed from the response of these 50 individuals.

1. ARE YOU AWARE OF STOCK MARKET?

The basic purpose of this question is to know about how many people
are
aware of the stock market and its activities.
NUMBER % OF
RESPONSES OF RESPONSES
RESPONSES

YES 50 100

NO 0 0
64
TOTAL 50 100
 NO

Series1

YES

0 20 40 60 80 100 120

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.

65
2. ARE YOU AWARE OF DEMAT ACCOUNT?

The basic purpose of this question is to know about awareness of

demat account among respondents.

NUMBER % OF
RESPONSES OF RESPONSES
RESPONSES

YES 40 80

NO 10 20

TOTAL 50 100

66
 YES
NO

Analysis:-

The above table clearly shows that from a sample size of 50

respondents, 40 individuals were aware of demat account.

3. DURATION FOR WHICH INVESTOR HAS BEEN TRANSACT

IN THE STOCK EXCHANGE

The purpose of this question is to know about the duration for which
investor has been transact in stock exchange.

67
 NUMBER % OF
DURATION OF RESPONSES
RESPONSES

LESS THAN
1 YEAR 20 40

1 YEAR 5 10

2 YEAR 10 20

MORE THAN
2YEAR 15 30

TOTAL 50 100

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 LESS THAN 1 YEAR
1 YEAR
2 YEAR
MORE THAN 2 YEAER

Analysis:-

The above table clearly shows that from a sample size of 50

respondents, 15 have been trading in the stock exchange for more
than 2 years. 10 investors were trading for 2 years and remaining 25
for one year or less than a year.

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4. DO YOU TRADE- FREQUENTLY OR OCCASIONALLY?

This purpose of this question is to find out how many persons trade
frequently or occasionally.

NUMBER % OF
TRADE OF RESPONSES
RESPONSES

FREQUENTLY 20 40

OCCASIONALLY 30 60

TOTAL 50 100

70
 FREQUENTLY
OCCASIONALLY

Analysis:-

This chart shows that 30 individuals trade occasionally and 20

individuals trade frequently.

5. WHICH TYPE OF SCRIPTS YOU HAVE?

The purpose of this question is to know about which type of scripts

the respondents have.

71
 NUMBER % OF
SCRIPTS OF RESPONSES
RESPONSES

PHYSICAL 15 30

DEMATERIALISED 35 70

TOTAL 50 100

40
35
30

25
20 Series1
15
10
5
0
PHYSICAL DEMATERIALISED

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Analysis:-

Above graph shows that many individuals have dematerialised

scripts and some have physical scripts.

NUMBER % OF
RESPONSE OF RESPONSES
RESPONSES

YES 30 60

NO 20 40

TOTAL 50 100

6. DO YOU CONVERT YOUR SHARES ELECTRONICALLY?

The basic purpose of this question is to know about how many

persons are interested to convert their shares electronically.

73
 YES
NO

Analysis:-

This chart shows that 30 individuals wanted to convert their shares

electronically and rest were not.

7. ARE YOU SATISFIED WITH DEMAT SERVICE PROVIDER?

The purpose of this question is know satisfaction about demat

service provider.

74
 NUMBER % OF
RESPONSES OF RESPONSES
RESPONSES

YES 45 90

NO 5 10

TOTAL 50 100

100
90
80
70
60
50 Series1
40
30
20
10
0
YES NO

Analysis:-

75
This graph shows that most of the people were satisfied with demat
service provider.

8. PROBLEMS BEING FACED BY THE RESPONDENTS

RELATING TO TRADING

This question tells us about the type of problems faced by the

respondents.

NUMBER % OF
PROBLEMS OF RESPONSES
RESPONSES

NO TRANSFER OR
BAD DELIVERY OF 10 20
SHARES

OTHER TYPE 20 40
OF PROBLEM

NO PROBLEM 20 40

TOTAL 50 100

76
 NO TRANSFER OR BAD
DELIVERY OF SHARES
OTHER TYPE OF PROBLEM

NO PROBLEM

77
Analysis:-

From the above chart we can see that 20 investors faced no problem
due to the introduction of DEMAT. Nearly 10 respondents faced
problems due to non-transfer and bad delivery of shares. Because of
many sick companies being listed in the stock exchange, the problem
of non-receipt of dividend can be found among 7 investors. There
were 20 persons who were facing other problems.

Limitations Of The Research Study

• Due to the lack of time, it was not possible for the researcher to
approach all the people.

• The respondents were asked to indicate their true responses to the

questions being asked, but rather than giving the response, they

78
 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.

• Money was also considered as a major constraint during the

research work.

• Personal biasness may be included in the research work.

SUGGESTIONS AND RECOMMENDATIONS

79
• As many of the people who dealt in share market are aware of
UNICON’S name but not of its services. So company should
advertise its services , so that people can be made aware of all the
services provided by the company.

• Most if the people are not finding any spare time to convert their
shares electronically. So company should approach to such people
at their doorstep to open their demat account.

• As far as people preference regarding opening of demat a/c is

concerned then they mainly prefer two factors i.e. service and trust.
So it becomes necessary for the company to take care of these two
factors.

80
 BIBLIOGRAPHY

• Unicon forms for opening depository and trading account.

• Study material of capital market and derivatives market of

NCFM.

• Zikmund, William G; “Business Research Methodology”,

Seventh Edition, Thompson South Western Publication

• Websites Visited
www.sebi.gov.in
www.nseindia.com
www.bseindia.com
www.nseindia.com

81
 QUESTIONAIRE

I am a student of M.B.A. from Doon Valley Institute of Engineering &

Technology, Karnal, Haryana. You are required to fill this questionnaire
to enable me to undertake the study on the said project.

NAME: _________________________________

CONTACT NUMBER: _________________________________

OCCUPATION: _________________________________

ADDRESS: _________________________________

1. Are you aware of stock market?

(a) Yes (b) No

2. Do you deal in share?

(a) Yes (b) No

3. Are you aware of DEMAT?

(a) Yes (b) No

4. Are you aware of REMAT?

(a) Yes (b) No

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5. How long have you been transacting in the stock exchange?

(a) Less than 1 year (b) 1 year

(c) 2 year (d) More than 3 year

6. Do you trade frequently or occasionally?

(a) Frequently (b) Occasionally

7. In which securities do you trade frequently?

(a) Equity (b) Bonds (e) All

(c) Debentures (d) Futures & Options

8. Which type of script you have?

(a) Physical (b) Dematerialized

9. Why you have not dematerialized your script?

(a) Lack of awareness (b) Time constraint

(c) Liability of changes
10.Do you like to convert your shares electronically?

(a) Yes (b) No

83
11. On what basis you have taken your decisions of opening of demat

A/c?

(a) Service (b) Changes (c)

Convenience
12.Are you satisfied with your demat service provider?

(a) Yes (b) No

13. What type of problems do you centrally face when you trade in
securities?

(a) Non transfer of shares (b) Other type of problems

(c) Bad transfer of shares (d) No Problem

84
85