A

PROJECT
ON

DEMAT ACCOUNT DETAILS OF UNICON

INVESTMENT SOLUTION
Submitted by:
ROLY SRIVASTAVA
BBA- III
A7006410053
Under guidance of:
Faculty Guide:

Mrs. Rashmi Tripathi

Sr. Lecturer
ABS
Amity University

(RESEARCH PROJECT REPORT FOR THE BACHELOR

BUSINESS ADMINISTRATION (2010-13)

STUDENTS CERTIFICATE
Certified that this report is prepared based on the summer internship project
undertaken by me in UNICON INVESTMENT SOLUTIONS PVT LTD.
from 9th May 2011 to 2nd July 2011, under the able guidance of Mrs.Rashmi
Tripathi in partial fulfillment of the requirement for award of degree of
Bachelor of Business Administration (BBA) from Amity University, Uttar
Pradesh.
Date.
Signature
Roly Srivastava
Student

Signature

Signature

Mrs. Rashmi Tripathi

Mr.V.P.Sahi

Faculty Guide

Director (ABS)

FACULTY CERTIFICATE

Forwarded here with a summer internship report on DEMAT ACCOUNT

DETAILS of UNICON INVESTMENT SOLUTIONS PVT LTD
submitted by, Roly Srivastava. Enrollment No. A7006410053, student of
Bachelor of Business Administration (BBA ) 3 rd Semester (2010-13)
This project work is partial fulfillment of the requirement for the degree of
Bachelor

in Business Administration from Amity University Lucknow

Campus, Uttar Pradesh.

Mrs.Rashmi Tripathi
AMITY UNIVERSITY,
LUCKNOW CAMPUS
UTTAR PRADESH

ACKNOWLEDGEMENT

First and foremost, I would like to thank my Faculty Guide Mrs.Rashmi

Tripathi and for all the support and guidance that she offered me during the
making of this project.
Secondly I would like to thank the Branch Manager, Mr.Prashant Shukla of
Unicon Investment Solutions for providing me with this opportunity to do
my Internship under him. His guidance has been overwhelming.
Last but not the least, I would like to thank all the other staff at Unicon,
including, Ms.Rekha, Mr.Rehman and everyone else for correcting me
wherever we went wrong.

Table of Contents

Introduction to Unicon

Mission & Vision of Unicon

Products and Services offered by Unicon

Equity
Commodity

Objective of the study

Introduction

What is Demat

A/c opening

Beneficiary A/c

Documents required for Demat Account

Dematerialisation Account

Demat Process

Depository & Depository Participant

National Securities Depository Limited (NSDL)

Central Depository Services Limited (CDSL)

Physical Segment

International Securities Identification No. (ISIN)

Research Methodology

Research Design

Sample Design

Data Collection Technique

Method used for Analysis of Study

Limitations of the Research Study

Suggestions & Reccomendations

Bibliography
5

Questionnaire

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 commissionon
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 relationship managers out of more than
100 branches.
Unicon also gives personalized services on insurance (Life and General) &
Investments (Mutual funds & IPOS) 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.

Mission and Vision of Unicon Investment Solutions

MISSIONTo create long term value by empowering individual investors through

superior financial services supported by culture based on highest level of
teamwork, efficiency and integrity.

VISIONTo provide the most useful and ethical investment solutions guided by values
driven approach to growth, client service and development.

PRODUCT & SERVICES OFFERED BY UNICON

Unicon deals with a numbers of products & services:

-Equity
-Commodity
-Privileged Client Group
-Properties
-Distribution
-NRI Services
-Back Office

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 PlusBrowser 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 SwiftApplication based terminal for active traders. It provides better speed,
greater analytical features & priority access to Relationship Managers.

Commodity
Unicon offers a unique feature of a single screen trading platform inMCX
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 quickly on

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.
9

OBJECTIVE OF THE STUDY

The main objective of the study is to know about the potential of
the market regarding peoples 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.

10

INTRODUCTION
The trading on stock exchanges in India used to take place through open out
cry 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 amatching 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
11

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.
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.

WHAT IS DEMAT12

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 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
13

To avail the services of a depository an investor is required

to

open

an

account

with

depository

participant

of

any

depository.

PROCEDURE FOR OPENING AN ACCOUNTA 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 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.

14

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 clients
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 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 clients
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.
15

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) along with Demat Request forms to the
dp. However, the 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 to be required for demat accountProof of identity- (POI)

Passport
Voter ID Card
Driving License
Pan card with photograph
Identity card with applicants photograph issued by
-Central or state government or its department
-Statutory/Regulatory authorities
-Public Sector Undertakings
-Scheduled Commercial Banks
-Public Financial Institutions
-College affiliated to Universities

Proof of address- (POA)

16

Ration card
Passport
Voter ID card
Driving License
Bank Passbook
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
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.
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.
17

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 guardians photograph and guardian to sign across both
photographs
PAN card of minor as well guardian is mandatory

In case of NRI
Foreign address and RBI approval date attested copy of RBI
approval
NRO-Indian address along with proofs
Bank account details

In case of joint holdings

In case of joint holdings, POI and POA documents along with 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.

18

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 obliviate 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 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 guardianis required
to sign the application form, and details of his name andaddress need to be
given in addition to the details of the minor.

(d) Foreign Address and RBI approval details for NRI, FII or OBC
accounts -For foreign-based applicants like NRIs, Flls, OCBs, etc., the
19

applicant must furnish original or attested copies ofthe 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 isrequired.

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

account holder, including the nine digit code number of the bankand 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.

(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
20

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.

PREREQUISITES 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 recognised 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.

21

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.
3. The 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 don 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 bt the
DP is incomplete.

22

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
within 15 days.
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 maybe given to the DP.
Otherwise, he will need to give a receipt instruction to his DP for receiving
credits to his account.

23

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 .

24

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.

25

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 investors interest. The bank
accountnumber will be mentioned on the interest or dividend warrant, so
thatsuch warrant cannot be encashed by any one else.Further, cash
corporatebenefits such as dividend, interest will be credited to the
investorsaccount 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 asper
the bank account details provided by the investor at the time ofaccount
opening, the investor must ensure that any subsequent change inbank
account details is informed to the DP.

26

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/heraccounts. Depository / DP can be chosen by investor as per
convenienceirrespective of the DP of the broker.
The demat account must be opened in the same ownership pattern such
assecurities owned individually in which the securities are held in
thephysical form. e. g. if one share certificate is in the individual name
andanother certificate is jointly with somebody, two different accounts
wouldhave to be opened.

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 DepositoriesAct. In a
strictly legal sense, a DP is an entity who is registered as such with SEBI
under the provisions of the SEBI Act.

27

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.

NATIONAL SECURITIES DEPOSITORY LIMITED (NSDL)

NSDL was the 1st depository organization promoted by IDBI, UTI and
National Stock Exchange (NSE). NSDL was setup to provide electronic
depository facilities for securities being traded in capital market. The
depository ordinance was promulgated by the Government of India in
September 1995. The Securities and Exchange Board of India (SEBI) issued
guidelines for depository 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
28

stock-broker or a non-banking financial company subject from 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, minimise risk and reduce costs.

CENTRAL DEPOSITORY SERVICES (INDIA) LIMITED

(CDSL)
CENTRAL DEPOSITORY SERVICES

LIMITED (CDSL) is second

depository in India, is setup to meet the objective the act and to fulfil the
users need. CDSL is secure Certificate of Commencement of business on
Feb 8, 1999 from SEBI. The balances in the investors account recorde and
maintained with CDSL can be obtained through the DP. The DP is required
to provide the investors at regular intervals, a statement of account, which
gives the details of the securities, holdings, and transactions. The depository
system has effectively elaminated paper based certificates, which were prone

29

to be fake, forged, counterfeit resulting in bad deliveries. CDSL offers an

efficient & 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 & every activity of CDSL stern from the essential
reason behind forming this depository, i.e. , to encourage Indias individual
investors to benefit from effectively participating in a depository.

Service 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.

30

 Non-cash corporate benefits, viz. Bonus or rights-direct credit into

electronic form.
Depository restrict the risk of fraud.

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 a transferee DP and at transferor DP
are one and the same, i.e. identical in all respects.In case the BO Account at
31

transferor DP is a joint account, the BO Account a 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, ifso
desired. Accounts can be frozen for debits (preventing transfer ofsecurities
out of accounts) or for credits (preventing any movements ofhindrances into
accounts) or for both.

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 buyers
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

32

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 brokers account. Such instruction should reach the DPs office at
least 24 hours before the pay-in as other wise DP will accept the instruction
only at the investors risk.

'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:33

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
If only 1 entry is made in the DIS book, strike out remaining space to
prevent misuse by anyone.
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 & 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 & Borrowings Scheme.
34

Lending & Borrowings has to be done through Approved Intermediaries

registered with SEBI. The approved intermediary would borrow the
securities for further lendings to borrowers. Lender of the securities &
borrowers of the securities enter into separate agreements with the approved
intermediary for Lending & Borrowing the Securities.
Lending & Borrowing is affected through the depository system.
You can lend your securities through Approved Intermediaries registered
with SEBI.
One can lend his/her DEMAT securities by entering into an agreement with
the approved intermediary to be a lender under this scheme. After that , you
may lend securities anytime by submitting lending instructions to your DP.
Intermediary may return these 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 or borrower will return his securities together with the
benefits received.

PHYSICAL SEGMENT
Change in Name / StatusAll requests for change of name should be accompanied by a copy of the
notification in Official Gazette or a Newspaper.
35

-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 the 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 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

certificatesshould always be signed by the shareholder as per specimen

signatureregistered with the Company, accompanied by FIR lodged with
localpolice 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.

36

- 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 thisinconvenience).
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.

Following Instructions for the Nominations

Nomination can be made only by individuals, holding shares on their own
behalf, single 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.
A minor can be nominated by a holder of share and in that event the name
& address of the guardian must be given by the holder.
The nominee shall not be a trust, society, body corporate, partnership firm,
karta of Hindu Undivided Family or holder of Power of Attorney. A nonresident Indian can be a nominee on repartiable basis.
Nomination will stand cancelled upon transfer of shares.
The company will be fully discharged from its responsibility towards the
legal heirs of shareholder, if the shares are transmitted as per the nominations
37

filed with the company, without any further reference to the legal hiers of a
deceased individual shareholders.
Where the space provided in the form is not sufficient, share holders are
requested to attach separate sheeta giving details of distinctive number of
shares.
The nomination form should be filled iin duplicate with the company, who
will return one copy there of to the shareholders.
Although form to be as prescribed does not provide for specimen signature
of the nominee, this has been suggested in ordr to facilitate smooth
transmission of title to the nominee when the need arises.
Please note that if physical shares are subsequently covered into electronic
form, any nomination already filled will ceased to have affect, the
nomination details furnished to the depository participants will prevail
thereafter.

38

ISIN
International Securities Identification Number
Each of the securities dematerialised in the NSDL
depository bias a distinctive ISIN- an identification number. ISIN is a unique
identification number for each security issued in any of the international
standard 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 trade. ISIN is a twelve-character long
identification mark. It has 3 componentsA pre-fix, a basic number and a check digit. The pre-fix is a 2-letter country
code a stated under ISO 3166 (IN for Indian). The basic number comprises 9
alpha numeric characters (letter and/ digits). The check digits 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 & 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 & dematerialised securities of the same issues.
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.

39

International Securities Identification Number

Issued by international standard organisations (ISO) member countries in
accordance with ISO 6166.
ISIN is a 12 digit alpha numeric number.
It has 3 components, pre-fix, basic and check digit.
Pre-fix is a 2 letter country code, i.e., IN for India.
The basic number has 9 alpha numeric characters.
The last digit is check digit. It ensures the ISIN is valid.

40

Numbering System Of ISIN

The numbering structures for securities in NSDL is of 2 digit alpha numeric
string. The first 2 characters represent country code, i.e., IN (in accordance
with ISO 3166). The 3rd character represents the issuer type as detailed
below:
ISSUERS TYPE
Issuer Type

Code Allotted

Central Government

State Government

Municipal Corporation

Union Territories

Company, Statutory Corporation, Banking Company

Mutual Fund including UTI

The list may be expanded per the needs. Maximum issuer types can be 35
(A-Z and 0-8. 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 001A and continues till 999A and proceeds to 001B.
The next 2 characters (the 8th and 9th characters) represent security type for a
given issuer. Both the characters are numeric. The next 2 characters (the 10 th
and 11th characters) are serially issued for each security of the issuer entering
the system. Last digit is double-add-double check digit.
41

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

discount

bonds

11
Step
12
Warrants
13

42

RESEARCH METHODOLOGY
Research methodology refers to the search for Knowledge. It is a way
tosystematically 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 isfurther
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
43

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 and problems
also having a bearing in the choice. To count a few, 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 &
disadvantage when weighted against affecting factors.
Research methodologies can be said to have four major components namelyResearch design, sample design, data collection procedure and methods of
analysing and reporting the findings.

Research DesignThere are search problems 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 within 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 their can be achieved
depends mainly on the research purpose. Research purpose may be grouped
into 4 categories Exploration
Description
Diagnosis
Experimentation
Exploratory research studies- are those whose main purpose is that of
formulating the problems for more precise investigations or of developing
the working hypothesis from an operational point of view.

44

Descriptive research studies- are those studies which are concerned with
describing the characteristics of a particular individual, or of a group.
Diagnostic research studies- determines the frequencies with which
something occurs.
Experimental research studies- are those where the researcher tests the
hypothesis of casual relationship between the variables.
Research design of this particular research study of dematerialisation
of shares is primarily based on descriptive and diagnostic research design. As
descriptive and diagnostic research design describe the characteristics and
determines the frequencies with which something occurs respectively,
similarly this research determines the characteristics of the individuals who
deal in shares and also determine the frequency of dealing on the basis of
their characteristics.

SAMPLE DESIGN
All the items under consideration in any field of enquiry constitute a
Universe or Population. A complete enumeration of all the items in the
population is known as a census enquiry. This type of enquiry involves a
great deal of time, money and energy. Hence quite often a few items so
selected constitute what is technically called a sample.
There search are must decide the way of selecting a sample of 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 samples. With the
probability samples each element has a known probability of being included
in the sample but non-probability sample are those based on samples do not
allow the researcher to determine this probability.
45

Probability samples are those based on simple and random sampling,

systematic sampling, etc whereas non-probability samples are those based on
communion sampling, judgement sampling, etc.

Data collection techniqueThe required data is collected both from primiary 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 and closed-ended and
multiple-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:MAGAZINES & BULLETINES- Broucher of Unicon Investment Solutions
INTERNET- www.sebi.gov.in
www.nscindia.com
www.uniconindia.in
Size of Sample- The overall sample involved in the study consisted of 50
individuals. Keeping in view the limited resources of time, a limited sample
46

of individuals. It was fixed before hand and every effort was made to cover
the given no. of individuals with available time for the collection of data for
his project. The data was collected with the help of the questionnaire herself
by the researcher.

Method used for analysis of studyThe methodology used for this purpose is survey & 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 DataAfter the data have been collected, the researcher turns to the task of
analysing them. The analysis of data requires a number of closely related
operation such as establishment of categories, the application of these
categories to raw data through coding, tabulation and then drawing statistical
inferences. The wisely data shpuld necessarily be condensed into a few
manageable groups and tables for further analysis. Thus, researcher should
classify the raw data into some purposeful and useable categories. In the
process of analysis, relationship or differences supporting or conflicting with

47

original or new hypothesis should be subjected to tests of significance to

determine with what validity data can be set to indicate any conclusion.
INTERPRETATION- the interpretation is done on the basis of the analysed
data and also some recommendations are given to fill the loopholes of the
actual scenario.

DATA ANALYSIS AND INTERPRETATIONResearch 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 search to interpret the result.
The sample size in this study consisted of 50 individuals & data analysed
from the response of these 50 individuals

48

Q1) Are you aware of the stock market?

A) The basic purpose of the question is to know about how many people are
aware of the stock market and its activities
Q2) Are you aware of the Demat Account ?
The basic purpose of this question is to know about awareness of
demat account among respondents.
Responses
Yes
No
Total

No. of Responses
40
10
50

% of Responses
80
20
100

49

Column1

Yes
No

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 responses they might
have been in a form of expert commentswhich might have been based
the result of 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.

50

Suggestions and Recommendations

As many of the people who dealt in share market are aware of
UNICONS 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.

BIBLIOGRAPHY

- Unicon forms for opening Depository and Trading account.

- Study material of capital market and derivatives market of NCFM.
51

- Zikmund, William G;

Business Research Methodology Seventh

edition, Thompson South Western Publication.

- Websites visited
www.sebi.gov.in
www.nseindia.com
www.bseindia.com

QUESTIONNAIRE
I am a student of B.B.A. from Amity University, Lucknow, Uttar Pradesh.
You are required to fill this questionnaire to enable me to undertake the study
on the said project.
NAME:
CONTACT NO.:
OCCUPATION:
ADDRESS:
1. Are you aware of the stock market?
(a) Yes
(b) No
2. Do you deal in share?
(a) Yes

(b) No
52

3. Are you aware of Demat?

(a) Yes
(b) No
4. Are you aware of Remat?
(a) Yes
(b) No
5. How long have you been transacting in the Stock Exchange?
(a) Less than 1 year
(c) 1 yr
(b) 2 yr
(d) More than 3 yrs
6. Dou you trade occasionally or frequently?
(a) Frequently
(b) Occasionally
7. In which securities do you deal frequently?
(a) Equity
(d) Bonds
(b) Debentures
(e) Future and Options
(c) All
8. Which type of script do you have?
(a) Physical
(b) Dematerialised
9. Why have you not dematerialised your script?
(a) Lack of Awareness
(c) Time constraint
(b) Liability of changes
10. Do you like to convert your shares electronically?
(a) Yes
(b) No
11. On what basis have you taken your decision of opening of your
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 (c) Bad transfer of shares
(b) Other type of problems (d) No problem

53