Executive Summary: A Study of Customer Satisfaction Towards Depository Participants

A Study of Customer Satisfaction towards Depository Participants
EXECUTIVE SUMMARY
Karvy, the FINAPOLIS Ltd. is a stock Broking Company that deals in shares. Apart
from security broking Karvy is in to Demat services, Mutual fund and Insurance services.
It offers a wide range of financial services in order to meet different individuals financial
planning.
The project emphasizes on Customer satisfaction towards depository participants
Objectives of the Study:
To know the function of DP.
To know the percentage of have satisfied the service of DP.
To know how demat account is helping in the trading
To know the exception of the customer.
To know the loops and draw backs of DP.
Research Methodology:
Data source:
Primary Data: Through Questionnaire
Secondary Data: Karvys Record & Report, Magazine & Websites.
Sample size: 100 customers of Karvy Stock Broking Ltd.
Area Covered for research: Only Dharwad KARVY customers.
Sampling Procedure: Random sampling method from available database.
In the present scenario the service industry has given an utmost importance of doing a
particular task at a fastest time in order to satisfy the customer and to attract new customer.
In this project we can find out the customer of Karvy Consultant have satisfied with demat
Belgaum Institute of Management Studies (MBA)
Page. No1

service and this DP is overcoming the disadvantages of the physical trading of the
securities in the stock exchange.
Findings:
Findings:
1) I have carried out this exercise on Dematerlisation. So in my studies I have tried to see
whether the customer have satisfied the service given by depository participants.
2) I have also seen that awareness of KARVY service given by Karvy finical consultant is
from mainly through Agents is less than friends .
3) It is also find that more than 84% of the respondent have satisfied with the service of
demat.
4) It is also find that more than 55% to 60% of the respondent has satisfied with the service
of Freezing/ Defreezing and loan against share. More than not aware abut these services.
5) Also found that nearly 2% of the respondents are dissatisfied with bill Acceptance.
6) 5% Improper format of Holding/Transaction statement and 4% Frequently reminders are
given to karvy consultant ltd., for update the information Are Dissatisfied .
7).38% of respondent feel tariff structure of Karvy Stock Broking Ltd charged is high and
very high.
8) Also find that 53% respondent have satisfied 80% of the service
9). 35% of respondent prefer Karvy Stock Broking Ltd as DP to other DP because of
Quality service. And 40% for safety service.
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Introduction
India has two hundred years old tradition in Securities. Infact that first India stock
exchange established in Bombay is the oldest in Asia. The earliest security dealings were
Transactions in loan securities of East India Company, the dominant institution of those
days. Corporate Shares came into the picture by 1830s and assumed significance with the
Companies Act of 1956. In 1887 the broker community gave birth to the Native share and
stock brokers Association which is now known as the Bombay Stock Exchange.
The Indian Capital grew at a very moderate rate from 1951 to 1980. However it registered
an impressive growth in 1980s. the process of liberalization and the transparency in
operation has raised the interest of foreign investors in India. Till 1978 there were only 8
recognized exchanges in India. Initially the exchange operated on an outcry system i.e.
manual system of trading Due to increase in the trading volumes, the number of issuer
increased substantially, and the birth of NSES highly transparent automated system come
into existence Even then there was an increase in paper work causing a gridlock at every
stage in the stock market This delays the clearance and settlement of traders, registration of
securities in the shareholder name and due this it increased the back office paper work
intermediaries These outdated systems have increased settlement risks and have rendered
the implementation of a delivery of a versus payment system impossible. National Stock
Exchange of India Limited to provide electronic depository facilities for securities traded
in the equity and the debt market. NSDL commenced its operations in the year 1996 and is
the first depository in India.
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Design of the study

Tile of the project:
Service Analysis & Customer satisfaction towards Depositary participants.
Statement of the Problem: KARVY STOCK BROKING Ltd is providing the Demat
service. Hence in this report an attempt is made to know the present customer satisfaction
towards depository participants.
RESEARCH OBJECTIVES:
To know the function of DP.
To know the percentage of have satisfied the service of DP.
To know how demat account is helping in the trading
To know the exception of the customer.
To know the loops and draw backs of DP.
.
Methods and Methodology
Sampling Design:
Sampling since segment wise investors in KARVY STOCK BROKING Ltd were
available the overall customers were considered for the study. Hundred Percent
coveraged.. Hence random sampling survey method was adopted for the purpose of
the study.
Sampling Size: A sample of 100 was chosen for the purpose of the study. Sample
consisted of small investor, large investors and traders of KARVY STOCK
BROKING Ltd.
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Sampling Procedure: From large number of customer of KARVY STOCK

BROKING Ltd. Were randomly selected from the available customer database.
Field Study: Directly approached respondents.
DATA COLLECTION METHOD:

1. PRIMARY DATA: For a study of this nature primary data is collected
through Questionnaire.
2. SECOUNDARY DATA: This is been is collected through
Karvys
Record & Report, Magazine & Websites.

MEASUREMENT TECHNIQUE:
For this purpose measurement
technique used for survey is questionnaire
to collect information from the respondent

ANALYTICAL TECHNIQUE:
Statistical technique used for measuring the response is in terms of
percentage.
Limitation of study
Since Sample size is only 100 all Hundred customers are approached .
Since segment wise investor is available in KARVY STOCK BROKING Ltd.

Overall concept is taken for the study.
Information is partly based on secondary data and hence the authenticity of the
study can be visualized and is measurable.
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Level of accuracy of the results of research is restricted to the accuracy level with
which the customers have given their answers and the accuracy level of the answers
cannot be predicted.
BACKGROUND
Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice, flows
freely towards attaining diverse goals of the customer through varied services. Creating a
plethora of opportunities for the customer by opening up investment vistas backed by
research-based advisory services. Here, growth knows no limits and success recognizes no
boundaries. Helping the customer create waves in his portfolio and empowering the
investor completely is the ultimate goal.
KARVY, is a premier integrated financial services provider, and ranked among the
top five in the country in all its business segments, services over 16 million individual
investors in various capacities, and provides investor services to over 300 corporate,
comprising the who is who of Corporate India. KARVY covers the entire spectrum of
financial services such as Stock broking, Depository Participants, Distribution of financial
products - mutual funds, bonds, fixed deposit, equities, Insurance Broking, Commodities
Broking, Personal Finance Advisory Services, Merchant Banking & Corporate Finance,
placement of equity, IPOs, among others. Karvy has a professional management team and
ranks among the best in technology, operations and research of various industrial segments.
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The birth of Karvy was on a modest scale in 1981. It began with the vision and
enterprise of a small group of practicing Chartered Accountants who founded the flagship
companyKarvy Consultants Limited. We started with consulting and financial
accounting automation, and carved inroads into the field of registry and share accounting
by 1985. Since then, we have utilized our experience and superlative expertise to go from
strength to strengthto better our services, to provide new ones, to innovate, diversify and
in the process, evolved Karvy as one of Indias premier integrated financial service
enterprise.
Thus over the last 20 years Karvy has traveled the success route, towards building a
reputation as an integrated financial services provider, offering a wide spectrum of
services. And we have made this journey by taking the route of quality service, path
breaking innovations in service, versatility in service and finallytotality in service.
Our highly qualified manpower, cutting-edge technology, comprehensive infrastructure
and total customer-focus has secured for us the position of an emerging financial services
giant enjoying the confidence and support of an enviable clientele across diverse fields in
the financial world.
Over the years we have ensured that the trust of our customers is our biggest
returns. Factors such as our success in the Electronic custody business has helped build on
our tradition of trust even more. Consequentially our retail client base expanded very fast.
Our values and vision of attaining total competence in our servicing has served as the
building block for creating a great financial enterprise, which stands solid on our fortresses
of financial strength - our various companies.
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With the experience of years of holistic financial servicing behind us and years of
complete expertise in the industry to look forward to, we have now emerged as a premier
integrated financial services provider.
And today, we can look with pride at the fruits of our mastery and experience
comprehensive financial services that are competently segregated to service and manage a
diverse range of customer requirements.
GROUP OF COMPANIES
KARVY SECURITY LTD
Deals in distribution of various investment products, viz, equities,

Mutual fund, bounds debenture fixed deposits, insurance policies & other financial
products
Member Hyderabad stock Exchange (HSF)
KARVY STOCK BROKING LTD.
Deals in buying & selling equity shares & debenture &on the national stock
exchange (NSE), the Hyderabad stock exchange & over the counter exchange of
India (OTCEI)
Member-national stock exchange (NSE)
KARVY CONSULTANTS LTD
Transfer agency services for corporate & mutual funds
Registrar for IPO\book building
Depositary participant services
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Registered with both NSDL/CDSL
It enable services MT/call center /data classification
Karvy .com comprehensive financial advisory site
KARVY INVESTER SERVICES LTD.
Deals in issue management, investor banking & merchant banking of fixed

income & other financial products.
Trading through BSE
DEPOSITARY SEVICES
Registered as DP both with NSDL & CDSL
Serving over 2 lac investors
Online connectivity at Hyderabad, Lucknow &Bangalore
Ranked among the top 5 DPS in the country
High synergy with registry & broking activities for higher services levels to
the customer information
Web based customer information
Provision of service in over 75 locations
IT SERVICES GROUP
1.Medical transcription
First strategic initiative into global processing
Among the top MT companies in India
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2.E-BUSINESS GROUP
Strategic intent: to develop a comprehensive financial services portal

which includes
Investor servicing: mutual funds, corporate shareholders & depository

clients.
Distribution of financial products
Net trading
Insurance distribution
1. Call center
2. Started with a 30 agent e-call center
MISSION
Our mission is to be a leading, preferred service provider to our customers, and we aim to
achieve this leadership position by building an innovative, enterprising and technology
driven organization which will set the highest standards of service and business ethics.
QUALITY POLICY
To achieve and retain leadership, Karvy shall aim foe complete
customers satisfaction, by combining its human and Technological resources, to provide
superior quality financial Services. In the process, Karvy will strive to exceed Customers
expectations.
QUALITY OBJECTIVES
As per the Quality Policy, Karvy will:
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10

1. Build in- house process that will ensure transparent and harmonious
relationship with its clients and investors to provide high quality of
services.
2. Establish a partner relationship with its investor service agents and
vendors that will help in keeping up its commitments to the customers.
3. Provide high quality of work life for all its employees and equip them
with adequate knowledge &skills so as to respond to customers need.
4. Continue to uphold the values of honesty & integrity and strive to
establish unparalleled standards in business ethics.
5. Use state of the art information technology in developing new and
innovative financial products and services to meet the changing needs of
investors and clients.
6.
Strive to be a reliable source of value-added financial products and

services and constantly guide the individuals and institutions in making a
judicious choice of it. Strive to keep all stake- holders (shareholders,
clients, investors and regulatory authorities) proud and satisfied.
Achievements
Among the top 5 stock brokers in India (4% of NSE volumes)
India's No. 1 Registrar & Securities Transfer Agents
Among the to top 3 Depository Participants
Largest Network of Branches & Business Associates
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ISO 9002 certified operations by DNV
Among top 10 Investment bankers
Largest Distributor of Financial Products
Adjudged as one of the top 50 IT uses in India by MIS Asia
Full Fledged IT driven operations
Milestone
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12
ORGANISATION CHART
Managing Director
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13
Chief Managing Director
Vice-President Vice-President
Karvy
Securities
Ltd.
Deputy
General
Manager
Senior
Manager
Karvy
Stock Broking
Ltd.
Deputy
General
Manager
Vice-President
Karvy
Consultants
Ltd.
Deputy
General
Manager
Senior
Manager
Senior
Manager
Vice-President
Karvy
Investors Services
Ltd.
Deputy
General
Manager
Senior
Manager
Branch Manager
N number of Team Leaders
N number of Executives
INTRODUCTION
Dematerialization or "Demat" is a process whereby your securities like shares,
debentures etc, are converted into electronic data and stored in computers by a Depository.
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Securities registered in your name are surrendered to depository participant (DP) and these
are sent to the respective companies who will cancel them after "Dematerialization" and
credit your depository account with the DP. The securities on Dematerialization appear as
balances in your depository account. These balances are transferable like physical shares.
If at a later date, you wish to have these "Demat" securities converted back into paper
certificates, the Depose Depository functions like a securities bank, where the
dematerialized physical securities are traded and held in custody. This facilitates faster, risk
free and low cost settlement.
In order to dematerialize certificates; an investor will have to first open an account

with a DP & then request for the dematerialization of certificate by filling up a
dematerialization request form (DRF), which is available with DP & submitting the same
along with the physical certificates. The investor has to ensure that before the certificate
are handled over to the DP For demat, they are defaced by marking Surrendered for
dematerialisation on the face of the certificates. Depository is much like a bank and
perform many activities that are similar to a bank.
Just as one opens a bank account in order to avail of the services of a bank, an
investor opens a depository account with a depository participant in order to avail of
depository facilities.
Following table compares the two.

Bank
Depository
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15
Holds funds in accounts
Holds securities in account
Transfers funds between accounts
Transfers securities between accounts
Transfers without handling money
Transfers without handling securities
Safekeeping of money
Safekeeping of securities
Transacting the depository way has several advantages over the traditional system of
transacting using share certificates. Some of the benefits are:
Trading in demat segment completely eliminates the risk of bad deliveries, which in
turn eliminates all cost and wastage of time associated with follow up for
rectification. This reduction in risk associated with bad delivery has lead to
reduction in brokerage to the extent of 0.5% by quite a few brokerage firms.
In case of transfer of electronic shares, you save 0.5% in stamp duty.
You also avoid the cost of courier/ notarization/ the need for further follow-up with
your broker for shares returned for company objection
In case the certificates are lost in transit or when the share certificates become
mutilated or misplaced, to obtain duplicate certificates, you may have to spend at
least Rs500 for indemnity bond, newspaper advertisement etc, which can be
completely eliminated in the demat form.
You can also receive your bonuses and rights into your depository account as a
direct credit, thus eliminating risk of loss in transit.
You can also expect a lower interest charge for loans taken against demat shares as
compared to the interest for loan against physical shares. This could result in a
saving of about 0.25% to 1.5%. Some banks have already announced this.
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RBI has increased the limit of loans against dematerialized securities as collateral
to Rs2mn per borrower as against Rs1mn per borrower in case of loans against
physical securities.
RBI has also reduced the minimum margin to 25% for loans against dematerialized
securities as against 50% for loans against physical securities.
In short the advantages of opening a demat account are

Shorter settlements thereby enhancing liquidity
No stamp duties on transfer of securities held in demat form.
Elimination of risk associated with physical certificated such as bad
delivery, fake securities.
Reduction in handling large volume of paper;
Nomination facility
Transmission of securities (such as shares, debentures, bonds and units) is
done by DP eliminating the need to correspond with each company
separately.
Change of name, address, dividend mandate, registration of power of
attorney, transmission etc. can be effected across companies held in demat
form by a single instruction to the DP
Though under the Depositories Act, 1996, there is no compulsion and the investor
can hold shares either in physical or in dematerialized form. But according to Sebis
directive certain shares have to be traded compulsorily in dematerialized form where the
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seller cannot sell in physical form. However, after he has bought the shares the investor can
ask for rematerialization of the shares.
The Depository Account must be opened with a Depository Participant. NSDL
interfaces with investor trough Depository Participants (DPS). A list of names and
addresses of all Authorized DPs is available with the NSDL and CDSL and one can meet
any of these DPs place and make a choice at your based on your comfort and convenience.
Opening a depository account is as simple as opening a bank account. One can open a
depository account with any DP.
To open a Depository Account, you have to submit the duly filled in Account
Opening form along with the following documents:
Fill up the account opening form, which is available with the DP.
Residential Proof - Copy of Ration Card, Passport, Driving License, Telephone
Bill, Electricity Bill or Rental Agreement.
Sign the DP-client agreement, which defines the rights and duties of the DP and the
person wishing to open the account.
Receive your client account number (client ID).
This client ID along with your DP ID gives you a unique identification in the
depository system.
There is no restriction on the number of depository accounts a person can open.
However, if your existing physical shares are in joint names, you have to open the account
in the same order of names before you submit your share certificates for demat. A sole
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holder of the share certificates cannot add more names as joint holders at the time of
dematerializing his share certificates.
However, if the investor wants to transfer the ownership from his individual name
to a joint name, he should first open an account as the sole holder (account A) and
dematerialize the share certificates. He should then open another depository account
(account B) in which he is the first holder and the other person is the second holder and
make an off market transfer of the shares from the account A to account B. The investor
will incur a charge on this transaction. Alternatively, the certificates can be transferred to
the joint ownership and then sent for Dematerialization.
Right now, as per the Companies Act, there is no nomination facility for shares
(whether in the physical or in the electronic form). The nomination facility for shares can
be availed of only when the relevant provisions in the Companies Act are amended. NSDL
captures the details of the nominee when the account is opened so as to offer the facility as
soon as the relevant amendments are effected in the Law.
A client can choose to open more than one account with same DP. In addition to
this, he has a choice of opening accounts with more than one DP. However a broker can
open just one Clearing Member account per card/ stock exchange for clearing purpose, but
he can still open multiple beneficiary accounts Beneficiary is the personal account wherein
brokers can keep their personal holdings.
Account opening
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Any investor who wishes to avail depository services must first open an account
with a depository participant of NSDL The process of opening a Demat account is very
similar to a bank account The investor can open an account with any depository participant
of NSDL An investor may open an account with several DPs or he may open several
account with single There are several DPs offering various depositary related services.
Each DP is free to fix its own fee structure Investors have the freedom to choose a DP
based on criteria like convenience , comfort has to enter into an agreement with the DP The
form and contents of this agreement are specified by the business rules of NSLD
Types of depositary account depends on the operation to be performed There are three
types of Demat accounts which can be opened with a depositary participant viz
(a) Beneficiary Account (b) Clearing member Accounts and (c) intermediary account
Types of accounts
Beneficial owner
Account
House
Clearing member
Account
Intermediary
Account
Non-House
A DP may be required to open three categories of accounts for client beneficiary

account, clearing member account and intermediary account
A beneficiary account is an ownership account The holder/s of securities in this

type of account own those securities
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The clearing member account and intermediary account are transitory account The
securities in these are held for commercial purpose only
A clearing member account is opened by a broker or a clearing member for the

purpose of settlement of trades
An intermediary account can opened by a SEBI registered intermediary for the

purpose of stock leading and borrowing
Beneficiary account
This is an account opened by investor to hold their securities in
dematerialized from with a depository and to carry out the transactions of sale purchase
of such securities in book entry form through the depositary system A beneficiary
account holder is legally entitled for all rights and liabilities attached to the securities
held in that account Therefore, the account is called beneficial owner account a
beneficial account can be in the name of individual, corporate, HUF, minor, bank,
financial institution , trust etc or the broker himself for the purpose of his personal
investments in demat form . The account is opened with a DP
House account vs. non house account opened by a DP for the custody of
and transactions in its own investment is referred to as a house account DPS
Are
required to open house accounts for their own investments to prevent co-mingling of
asset with that of their clients
Neither the depositories ACT nor the regulations made under the act lay
down any specifications about who can open a beneficiary account since all beneficial
owners are deemed to be member of a company (under section 41 (3) of the companies
act) only those who are eligible to become members of a company act can open a
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beneficiary account with a depository Thus all legal entities with the exception of
partnership firms can open an account in the depository system
Documents for verification: For the purpose of verification, all investors have to submit
the following documents along with the prescribed account opening form
Proof of identity- a beneficiary account must be opened only after obtaining a
proof of identity of the applicant The applicants signature and photograph must be
authenticated by an existing account holder or by the applicant bank or after due
verification made with the original of the applicants valid passport , voter id , driving
license or PAN card with photograph and further
Proof of address- The account opening form should be supported with proof of address
such as verified copies of ration card/ passport/ voter ID/ PAN card/driving license / bank
passbook an authorized official of the
participant, under his signature, shall verify the
original documents
In case any account holder fails o produce the original documents for verification
within the foreside period of 30 days, it must be immediately brought to the notice of
NSDL Failure to produce the original within the prescribed time would invite appropriate
action against such account holder, which could even include freezing of their accounts
Common information: The process of opening an account with a depository, nature

of such an account, and various factors to be considered for opening a depository
account are explained below. Some details are common to all types of accounts. These
are:
1. Name of the holder
2. Date of birth (for individual accounts)
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3. Occupation
4. Address & phone / fax number
5. Bank details like name of the bank, type of the account (current/savings), accounts
number, branch address, MICR, etc
6. PAN number, if applicable
7. Details of nomination
8. Specimen signatures
Beneficiary account- procedure for opening an account
Investor have the choice of selecting a DP based on their convenience , comfort
,service, levels , safety, reputation charges , etc they have flexibility to have more than
one account with the same DP or any other DPS No minimum balance is required for
opening a depository account Investor also have the freedom to close an account with
one DP and open another one with any other DP
The type of the account opening from to field by an investor and the list of documents
required depend on the type of beneficiary account to be opened whether it is for
NRIs or corporate or individual Further, the individual account can be in a signal name
or joint name clearing members and brokers have to open in a beneficiary account if
they have to deal with their own holdings
There are several client types in the depository system and different codes are
allotted to them. These are listed below
1. Resident
Ordinary
HUF
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2. Financial institutions
Government sponsored FI
State financial corporation
Other
3. FIIS
Mauritius based
Others
4. NRI
Repatriable
Non-Repatriable
Depository receipt
5. Body corporate
Domestic company
Overseas corporate body Repatriable
Government company
Central government
State government
Co-operative body
NBFC
Non NBFC
Broker
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24
Foreign bodies
Group companies
Others
OCB-Nonrepatriable
Depository receipt
6. CM (clearing member)
7. Foreign national national /depository receipt
8. Mutual fund depository receipt
9. Trust, Bank
10. Intermediary
Clearing Member Account
The entities that are authorized to pay out from a clearing corporation/ clearing
house against traders done by them or their clients are known as clearing members. CMs
are identified in the system through their CM-BP ID. All pay-in and pay-out transactions
are carried out through their accounts.
There are two types of clearing members:
1. All members of a stock exchange popularly know as brokers, are clearing
members;
2. Custodians who are permitted by the stock exchange to act as a clearing members.
Procedure to open a clearing member Account

The steps undertaken to open the account are same as those of the individuals,
difference lies in the type of the clearing members has to first register itself with the
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depository and obtain a business partner identification number (CM-BP-ID). The clearing
member is identified by the combination of CC-CM-ID given by the DP.
Immediately after opening a clearing account, the DP should inform the depository
the details of clearing members name, CM-BP-ID, client-ID, and date of the opening the
account in DPM system.
The clearing account should only be for clearing and settlement purpose and nit for
any other purpose, e.g., holding of securities received in a settlement received in a
settlement account should be transferred to the transferred to respective beneficial accounts
as soon as possible, but in no case later than the time prescribed by the depository/ stock
exchange/ SEBI in this regard. The opening of clearing members account constitutes a
standing instruction to receive credits from the clearing corporation when there is a payout.
The Clearing House deals with ONLY ONE designated account for pay-in and
pay-out with the Broker. This single account allows you to know to which account
securities must be delivered and received from. One Clearing Member Pool Account is
opened per card / Stock Exchange to settle trades in the Dematerialised form.
STRUCTURE OF CLEARING ACCOUNT

The clearing account is identified in the depository system by its CM-BP-ID. The
internal structure of the Clearing Account consists of three parts to facilitate easy book
keeping.
Arrangement of clearing account
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Pool Account
Delivery Account
Receipt Account
Clearing Corporation (CC)/Clearing House (CH)
Clearing Account
Receipt Account
Delivery Account
Pool Account
Selling
client
Buying
Client
a) Pool Account: It has two roles in clearing of Securities, viz., before pay-in, the
selling client of the clearing member transfers securities from his client Account to
the Clearing Account. After receiving pay-out, the clearing member transfers
securities from his Clearing Account to the account of the buying client.
b) Delivery Account: The securities before pay-in, the securities move from the Pool
Account To the Delivery Account. The movement will be automatic if clearing
member has given such an undertaking to its Clearing If the Clearing Corporation.
It will be effected on the basis of instruction received from the Clearing house/
Clearing Corporation. If the clearing house/ Clearing Corporation has not taken
such undertaking, the clearing member to its DP must submit a delivery instruction
form. At the time of pay-in, NSDL flushes out the securities in the Delivery
Account & transfers the same to the Clearing house/ Clearing Corporation.
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c) Receipt Account: On pay-out day, the Clearing house/ Clearing Corporation
transfers securities to the Pool Account (to The extent of net receipt) through the
Receipt Account. This account can be used to trace details of settlement-wise
receipt of the clearing member.
Market Type & Settlements Number: A clearing account can be broken into
compartment and sub-compartments. Each compartment can be called as market
type and be as settlement number. Hence, if securities are moved from any clearing
account, apart from the CM-BP-ID, the combination of market type and settlement
number must be provided. A diagrammatic illustration of the internal structure of a
clearing account is depicted below
Clearing Account
(IN503265)
Physical
Rolling
Action Rolling
2000014
9000152
2000248
Delivery Pool Receipt
2000015
2000016
9000153
9000152
2000248
2000249
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Settlement calendar: Settlement calendar is decided by the stock exchange. It contains
details for each market type & settlement number. The detail for each settlement consists
of the date of trading, pay-in time, pay-out date, settlement number etc. Clearing member
can obtain the settlement calendar from its own stock exchange. This is also available in
the depository software of the DP.
MARKET TRANSFERS: Any trade, which is cleared & settled by the clearing
house/ Clearing Corporation of the stock exchange, is considered as a market trade
in the depository. Consequently, the transfers routed through the clearing account.
Typically, a market trade has the following legs of transactions.
a. Receiving securities for pay-in from clients (client to clearing members)
b. Delivering securities to the clearing house/clearing corporation for pay-in. (clearing
house/clearing corporation)
c. Receiving pay-out from the clearing house/clearing corporation. (Clearing
House/clearing Corporation to clearing member)
d. Distribution of pay-out to clients. (Clearing member to client)
A diagrammatic illustration of the settlement of a market trade in a depository is
depicted below:
DP of Buyers
CM
DP of buyer
C
CH/CC
NSDL
A
DP of Sellers
CM
DP of Seller
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Receiving securities for pay-in from clients (client to clearing member)

A selling client of a clearing member (broker) would transfer securities
from his beneficial owner account to the clearing account of the clearing member
for onwards delivery to the clearing house/clearing corporation. This transfer is
effected by his DP on the basis of a delivery instruction provided by the selling
client. A diagrammatic Illustration for securities received for pay-in from clients is
depicted below:
NSDL
DP2
DP1
Seller
A
AAAlle
rA
Seller
Seller
B
C
Indicates flow of securities
Clearing
Member
Indicates paper /electronic instruction given.
OFF MARKET TRANSFERS: Any trade, which is not cleared and settled by the
clearing house/clearing corporation of the stock exchange, is considered as an offmarket trade in the depository. Consequently, the transfer is not routed through the
clearing account. Such transfers take place directly between two beneficiary
Page. No
30

accounts. Both buyer and seller may open account either with the same DP or with
different DPs. The buyer and seller will trade amongst themselves and later on will
exchange money, i.e., settle funds amongst themselves. The selling client would
deliver securities from its beneficiary account to the beneficiary account of the
buying client. This transfer is effected by the DP of the selling client on the basis of
a delivery instruction provided by the selling clients. A diagrammatic illustration of
the settlement of an off-market trade in depository is depicted below:
Indicates flow of securities

Indicates paper /electronic instruction given.
Depository:
Page. No
31

A Depository is a Company where the shares of an individual are held in the
electronic form, at the request of the shareholder. This eliminates the physical form of
holding. IDBI, UTI, SBI and NSE promoted the National Securities Depository Limited
(NSDL). The Central Securities Depository Limited (CDSL) was promoted by BSE.
Your money may be held in the form of liquid cash at your home or may be
deposited in a bank. The bank holds your funds in the electronic form and subsequently
debits or credits the account. Depending on your issuance of cheques or deposit of
cheques. The advantages of safety and convenience of dealing with a Bank overweigh the
reasons for holding liquid cash in your home. Your financial assets such as Equity Shares
may be compared to the above example. You may hold physical share certificates in your
home and be exposed to the various risks of lack of safety, mutilation, loss etc.
Alternatively, you may deposit your shares in an organization called a Depository, which
holds your shares in the electronic form. You can dematerialize shares of only those
companies that have signed agreement to dematerialize their shares with the depository.
You cannot dematerialize shares if they are not in your name, i.e. shares held in street name
(market deliveries) cannot be dematerialized. However, when you send shares to the
registrar to be transferred to your name you can request that you want those shares in
dematerialized form.
Karvy
Consultants
Ltd.
has
four
DPMs
as
on
date.
They
are:
1.Hyderabad-IN300394
2.Lucknow - IN301557
3.Bangalore- IN301926
4. Mumbai - IN302470
Page. No
32

In India depositories are required to be registered with SEBI and are governed by
the provision of the Depositories Act, 1996 and regulation and bylaws framed for
depositories by the SEBI.
The depositories work in a completely computerized environment with electronic
linkages with the point of origination for the transactions that may cause the change in
ownership of securities. A depository will be electrically linked with the Register of the
members maintained by the company/registrar, clearing and settlement system in the stock
exchanges, stock lending organization (if in existence), custodians of securities, depository
participants and brokers.
Function of Depository
Dematerlisation: one of the primary functions of depository is to eliminate or minimize
the movement of the physical securities in the market. This is achieved through
dematerialisation of securities. Dematerlisation is the process of converting securities held
in physical form into holdings in book entry form.
Account Transfer: The depository gives effect to all transfers resulting from the settlement
of trade and other transactions between various beneficial owners by recording entries in
the accounts of such beneficial owners.
Transfer and Registration: A transfer is the legal change of ownership of a security in the
records of the issuer. For effecting a transfer, certain legal steps have to be taken like
endorsement, execution of a transfer of security occurs merely by passing book entries in
the records of the depositories, on the instructions of the beneficial owners.
Corporate Actions: A depository may handle corporate actions in two ways. In the first
case, it merely provides information to the issuer about the persons entitled to receive
Page. No
33

corporate benefits. In the other case, depository itself takes the responsibility of
distribution of corporate benefits.
Pledge and hypothecation: Depositories allow the securities placed with them to be used
as collateral securities in physical form to the lender or its custodian. These securities are
verified for authenticity and often need to be transferred in the name of lender. This has a
time and money cost by way of transfer fees or stamp duty. If the borrower wants to
substitute the Pledging/Hypothecating the securities makes the process very simple and
collateral accounting through book entries in the records of the depository.
Linkage with clearing system: whether it is a separating clearing corporation attached to a
stock exchange or a clearing house (department) of a stock exchange, the clearing system
performs the function of ascertaining the pay-in (sell) or pay-out (buy) of brokers who
have traded on the stock exchange. Actual delivery of securities to the clearing system
from the selling and delivery of securities from the clearing system to the buying broker is
done by the depository. To achieve this, depositories and the clearing system should be
electronically linked.
Depository Participant:
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34

Depository Participant (DP) is an organisation that acts as an Agent of the
Depository and interacts with the investor. A DP is responsible for maintaining your
securities account and operating it only under your written instructions. The Depositories
Acts mandates that investors can use Depository facilities only through DPs. The
distribution channel and geographical spread of the DPs offices allows you to access the
Depository at a low cost. DP can only access their own clients' information. They cannot
access the client information of any other DP. The information of your holdings in the
account is completely confidential& it is similar to your account balance in a bank.
You can select your DP to open a demat account just like you select a bank for opening
a savings account. Some of the important factors for selection of a DP can be:
1. Convenience - Proximity to your office/residence, business hours.
2. Comfort - Reputation of the DP, past association with the organisation, whether the
DP is in a position to give the specific service you may need?
3. Cost - The service charges levied by DP and the service standards.
Individual accounts can be opened by Ordinary Resident, HUF, NRI ~ Repatriable
and NRI Non-Repatriable. Body Corporate, Banks, Trusts, Financial Institutions, Foreign
Institutional Investors, and Overseas Commercial Banks etc can open corporate Accounts.
An account can be opened in the name of HUF in a similar way to individual account and
mentioning the account category as HUF. However, Kartha of HUF will sign the
application, agreement and all transactions under the account
An account cannot be opened in the name of the firm. It has to be opened in the
name of any of the Partner as an Individual account only.
Page. No
35

Procedure for Dematerialisation
Dematerialisation Process
1
Investor
2A
R & T Agent
DP
2
3
NSDL
4
Steps:
1. Client/ investor submits the DRF (Demat Request Form) and Physical certificates to DP.
DP checks whether the securities are available for demat. Client defaces the certificates by
stamping Surrender for Dematerlisation. DP punches two holes on the name of the
company and draws two parallel lines across the face of the certificate.
2.DP enters the demat request in his system to be sent to NSDL. DP dispatches the physical
certificates along with the DRF to the R & T Agent.
3.NSDL records the details of the electronic request in the system and forwards the request
to the R&T Agent.
4.R&T Agent, on receiving the physical documents and the electronic request, verifies and
checks them. Once the R&T Agent is satisfied, Dematerialisation of the concerned
securities is electronically confirmed to NSDL.
5.NSDL credits the dematerialized securities to the beneficiary account of the investor and
intimates the DP electronically. The DP issues a statement of transaction to the client.
A. DPs provide Dematerlisation request forms (DRF) to their clients.
Page. No
36

B. The client completes the DRF in all respect 7 submits to the DP along with the security
certificates to be dematerialized.
C. The DP checks the DRF for validity, completeness and correctness. The following
points should be checked particularly:
The security certificate sought to be dematerialized are attached to

DRF.
The attached security certificates are marked (defaced) with the

words surrendered for dematerialisation. This is a precautionary
measure to prevent misuse of share certificates by anyone.
The certificate are not mutilated or defaced in a manner affecting

any material information.
The name of client on DRF and the certificates is exactly the same
as in the clients account in DPM. However, minor variations in the
name (like abbreviated name, initials in the place of first name,
middle name, minor name mistake in the name) may be permitted if
it can be reasonably established that both names are of the same
person. The permitted variations refer to initials not being spelt out
fully or put prior to after the surname. In such cases, if the signature
on the DRF matches the specimen signature available with the DP,
the securities can be considered for demat.
Details like security type, face value, paid-up value, pari passu
status, certificate numbers, distinctive numbers, number of
Page. No
37

certificates, total quantity of securities and lock-in statues are filledin correctly.
D. If the DRF & the accompanying security certificates are found in order, the DP should
accept the DRF and certificates.
E. If DRF and the accompanying security certificates are not found in order, the DP should
return the DRF and certificates.
F. The DP should enter the dematerialisation request in the DPM. DPM generates a request
number (DRN), which should be mentioned on DRF.
G. An autorised person, other than one who entered the DRF details in the DPM, should
verify the details of DRN and release a request to NSDL.
H. Once the DP has received the certificates defaced by investor, the DP punches two holes
on the name of the issuer or its R&T Agent for dematerialisation. DRF and enclosures have
to be sent at the address to which physical certificate to be sent communicated by NSDL.
The forwarding letter should refer to the allotted DRN and should refer to the allotted
DRN and should Be sent within seven days of accepting it from the client.
I. The issuer or its R&T Agent verify the DRF & the accompanying certificate for validity,
completeness and correctness. They also match the details with the intimation received
from NSDL against the same DRN.
J. In case DRF is not found in order, the issuer or its R&T Agent send an objection memo
to the DP, with or without DRF & security certificates depending upon the reason for
rejection.
K. DRFs & Certificate are sent back on the following grounds:
DRN does not match with message from DM
Page. No
38
Quantity of actual securities is less than DRF
Quantity of actual securities is more than DRF
L. DRF & certificate are not sent back:
If the certificate is fake
If the certificate has been reported to be stolen
If the duplicates of the original certificates sent for demat have already been issued
If the endorsements are forged
If the securities are not in the name of the account holder as per DRF
If the details of the certificates do not pertain to the R&T Agent
If the signatures differ
If there is any court order on the securities
If the certificate are received after 15 days of the electronic request.
M. The DP informs the client accordingly & requests removal of reasons for objection.
The DP removes these or provides additional information to the issuer or its R & T Agent
within 15days of receiving the objection memo.
N. The DP, if the client so requires, may generate a new dematerialisation request & send
the securities again to the issuer or R &T Agent.
Precaution to be taken while processing DRF
Ensure account to have the same sequence of names of holders and name
structure as printed on the physical certificate.
Ensure ISIN is activated
Separate DRF for:
Page. No
39
Partly & fully paid-up shares
Locked & free holding
Holdings locked in for different reasons
Locked in holdings having different release date
Different ISINs of the company
ISIN to be entered by DP.
All joint holders to sign DRF.
Check DRF form with details on certificate.

Demat process
The demat process requires defacing of securities which will make the security
certificate undeliverable unless the demat formalities are completed. Therefore, the client
should be assisted in ascertaining whether the securities in question are available for
demineralisation. Clients should be helped in filling up the demat request properly. Demat
rejection causes great inconvenience to the client. DP should attend to this area with care
and caution. One of the important reasons for demat rejection is signature mismatch.
Taking the following precaution can reduce this:
If the client is aware that the signature with the company& signature of the client
should be advised to the register the new signature.
If the signature is slightly different, client should be advised to sign as per the
signature that was recorded by the company and as recorded with the DP.
Ensure dispatch of DRFs and certificate to R &T Agents within seven days.
Page. No
40

Client may be encouraged to use the Transfer-cum-demat facility if it is offered by
the company. They should be made aware of the procedures of the scheme.
In case of joint holdings, the clients should be informed about the availability of
Transposition cum Demat facility.
Closure of account:
Closure on Clients Request- A DP can close a depository account on receipt of an
application in the prescribed format. The application should be made by the account. In
case joint-holders. An account can be closed sought to be closed, the following steps are
necessary.
a. Re-materialization of all securities standing to the credit of the same account making the
application for closure; or
b. Transferring the balance to the credit of another account opened by the same account
holder(s) either with the same participant or with a different participant.
Before closing the account the DP should ensure that all pending transactions have been
settled. The request for closure should be processed only after ensuring that there is no
balance lying in the account.
Consolidations of accounts- Some clients have opened multiple accounts to dematerialize
their shares held in multiple combination and sequence of names. However, they may not
need so many accounts after they have dematerialized their shares and may want to bring
all their share holdings into one or fewer accounts. This can be achieved by using normal
off Market transfer instruction.
Closure by DP the DP may also initiate closure of a clients account if the client has
defaulted in performing should give sufficient notice to the client before initiating closure
Page. No
41

of his account. The notice should clearly state the reasons for closure of his account. The
notice should clearly state the reasons for closure of account. The process of closing
account in such a case is the same that of client-initiated closure.
Closure/ Shifting of Clearing Account A clearing member may transfer its clearing
account from one DP to another DP. For this, simultaneously applications have to be made
for closure of account to the earlier DP and for opening of new clearing member account to
the new DP. On receipt of the application, the new DP forwards the application to the
depository for approval and allotment of a new CM-BP-ID is allotted, the new DP opens a
new Clearing account and intimates the depository about the new client- ID. On receipt of
intimation from the intimates the clearing member. All pay-out of securities, subsequent to
the closure of old clearing account, take place in the new account. Pg-17-3
Trading & Settlement:
This is the an area where the DP must the DP must take immense care while accepting and
processing request listed below should from the account of his client to another account.
The aspects listed below should be kept in mind.
Ensure that the delivery instruction book given to each client has pre-printed serial
number and client-ID.
Inform clients about the pay-in deadline of the stock exchange and the deadline of
the DP.
Each DIS received should be inwarded correctly with the date and time stamp.
Late stamp must be affixed on the instructions received after the expiry of the
deadline set by the DP.
Ensure the correctness of execution date on the DIS.
Page. No
42
Ensure signature on DIS matches with the records of the DP.
Ensure that the signatures of all holders are obtain in case of joint accounts.
If the client has not issued standing instructions, he should be made aware that a
receipt in instruction will be required to the credits into the account on purchase of
shares.
Client should be made aware of the accounting freezing facility.
Settlement
The settlement of trades in the stock exchanges is undertaken by the clearing
corporation (CC)/ clearing house (CH) of the corresponding stock exchanges. While the
settlement of dematerialized securities is effected through depository, the funds settlement
is effected through the clearing banks. The clearing members directly with the CC/ CH
settle the physical securities.
Exclusive demat segment follows rolling settlement (T+5) cycle and the unified (erstwhile
- physical) segment follows account period settlement cycle. In case of rolling settlement
cycle, the account period is reduced to one day.
In case of settlement of trades done in exclusive demat segments, the pay-in and
pay out of funds and securities are effected on the same day afternoon and evening
(same day) thus reducing the blockage of funds and limiting exposure to the
clearing corporation.
Settlement of funds is effected through the clearing banks and depository plays no
role in this.
Page. No
43
Settlement of securities is effected through NSDL depository system.
Clearing and settlement of the regular market trades is effected through the clearing
members of the clearing houses of respective stock exchanges. All trading members
of stock exchanges are clearing members of clearing houses. In addition, for
settlement of institutional trades, custodians are also allowed to act as clearing
members.
Clearing members of clearing house, dealing in dematerialized securities are

expected to open a clearing account with any DP for the purpose of settling trades
in dematerialized securities. As, in the mixed (unified) segment, there is a
possibility for all clearing members to receive dematerialized securities, they are
expected to open clearing accounts.
If there is any short delivery at the time of pay-in of securities, these short positions are
auctioned in the Demat segment as done in the Unified (erstwhile-physical) segment.
Selling And Buying Of Shares: Selling dematerialized shares in stock exchanges is

similar to the procedure for selling physical shares. Instead of delivering physical shares to
the broker, you instruct your DP to debit your account with the number of shares sold by
you and credit your broker's clearing account.
Page. No
44

For this, a delivery instruction has to be given to your DP in a standardized format, which
will be available with your DP.
In short, for selling demat shares;
You can sell shares in any of the stock exchanges linked to a depository through a
broker of your choice.
Give an instruction to your DP to debit your account and credit your broker's
clearing member pool account. (this is a depository account used exclusively for
settling transactions by a broker)
On the pay-in day, your broker gives instruction to his DP for delivery of the shares
to clearing corporation of the relevant stock exchange.
The broker receives payment from the clearing corporation
You receive payment from your broker for the sale in the same manner you would
receive payment for a sale in the physical mode.
Buying Demat Shares: The procedure for buying dematerialized shares in stock
exchanges is similar to the procedure for buying physical shares. When you
want to purchase shares in electronic form, you have to instruct your broker to
purchase the dematerialized shares from the stock exchanges linked to a
depository.
Once the order is executed, you have to instruct your DP (vide a simple format
which is available with the DP) to receive securities from your broker's clearing account.
Page. No
45

Alternatively, you may give a standing instruction to receive credits into your
account and do away with giving a separate receipt instruction each time you expect a
credit. You have to ensure that your broker too gives a matching instruction to his DP to
transfer the shares purchased on your behalf into your depository account.
You should also ensure that your broker transfers the shares purchased from his
clearing account to your depository account, before the book closure. This is really
important because shares that remain in the clearing account of the broker on the book
closure/ record date will not be eligible for corporate benefits.
In brief, the transactions relating to purchase of shares are:
You can purchase shares in any of the stock exchanges connected to a depository
through a broker of your choice and make a payment to your broker;
Your broker receives credit in his clearing account with his DP on the pay-out day;
Broker gives instructions to his DP to debit his clearing account and credit your
account;
You instruct your DP for receiving credit into your depository account either
through a specific receipt instruction or using the "standing instruction" facility.
In case you are not using the "standing instruction" facility then, your depository
account is credited only if the instructions given by you and your broker match.
Other Services
Besides demat and trading Depositories also offer other services, these are:
Page. No
46

o Pledging/ hypothecation of dematerialized securities.
o Electronic credit in public offerings of companies.
o Receipt of non-cash corporate benefits such as bonus, rights in electronic form.
o Stock lending and borrowing.
o Transmission of securities.
Pledging: Dematerialized shares could be pledged; in fact, this is more advantageous as
compared to pledging share certificates.
To pledge your Demat shares
Both you (pledgor) as well as the lender (pledgee) must have depository accounts.
You must initiate the pledge by submitting the details of the securities to be pledged
in a standard format (available with DPs).
The pledgee should confirm the request through his DP.
Once this is done, your securities are pledged
All commercial documentation between the pledgor and the pledgee are handled
outside the depository system.
After you have repaid your loan, you can request for a closure of pledge by instructing
your DP through a standard format. The pledgee on receiving the repayment as well as the
request for closure of pledge will instruct his DP accordingly.
Page. No
47

Even the locked-in securities can be pledged, however they cannot be invoked before the
lock-in release date.
Even after the securities are pledged, the pledgor continues to remain the beneficiary
holder of those securities and will receive benefits of a corporate action, if any.
Initial Public Offerings: Credits for public offers can be directly received into demat
account. In the public issue application form of depository eligible companies, there will
be a provision to indicate the manner in which securities should be allotted to the applicant.
All you have to do is to mention your client account number and the name and
identification number of your DP.
Any allotment due to you will be credited into your account.
If the applicant is allotted securities in dematerialized form, but the details
regarding the beneficiary account are incomplete/ wrong, the person will get physical
delivery of allotted securities.
If securities were allotted in the dematerialized form, these would be credited to
applicants account any day between allotment date and listing date, at the discretion of the
company.
The issuer company/ their R&T agent will forward the applicant the allotment
advice giving the number of shares allotted in dematerialized form. Through this you can
come to know that you have been allotted shares.
Page. No
48

An amendment to the company law requiring all future public issues above
Rs100mn to compulsorily offer securities in dematerialized form is awaiting legislative
approval. After this all the issues above Rs100mn will require investors to trade only in
demat way.
Partly paid up and fully paid up shares in the depository, will be given separate
ISINs (International Securities Identification Number). These are also traded separately at
the stock exchanges.
The company issues call notices to the beneficial holders of securities in the
electronic form. The details of such beneficial holders will be provided to the issuer/ their
R&T agent by NSDL. After the call money realization, issuer/ their R&T agent will
electronically convert the partly paid up shares to fully paid up shares.
Receipt Of Cash/ Non-Cash Benefits: When any corporate event such as rights or bonus
or dividend is announced for a particular security, depository will give the details of all the
clients having electronic holdings in that security as of the record date to the registrar. The
registrar will then calculate the corporate benefits due to all the shareholders. The
disbursement of cash benefits such as dividend/ interest will be done directly by the
registrar. In case of non-cash benefits, depository will directly credit the securities
entitlements in the depository accounts of all those clients who have opted for electronic
allotment based on the information provided by the registrar.
Page. No
49

The bonus/ rights issue against holding in dematerialized form can be either in the
physical/ dematerialized form as per the choice of the investor. If no choice is given, by
default, the securities will be issued in the physical form.
Even if an investor has holdings in physical form, he can receive the bonus/ rights
issue against this in the dematerialized form.
In case of fractional part, as in the physical segment, it would be paid in cash and
the remaining whole part would be credited to the investors account.
The statement of holding and transaction statement is sent by the investors DP, it
will show the bonus/ rights credit into investors account. This report is sent to the investor
every fifteen days. In addition, an allotment advise will be send by the issuer/ their R&T
agent for bonus/ rights entitlement.
Stock Lending and borrowing: Through the depository account securities in the demat
form can be easily lent/ borrowed. Securities can be lent or borrowed in electronic form
through an approved intermediary, who has opened a special 'intermediary' account with a
DP.
To Lend Securities: You have to instruct your DP through a standard format (which is
available with your DP) to deposit your securities with the intermediary.
If the intermediary accepts your deposit of securities, the securities will be moved from
your account into the intermediary's account. If you wish to recall the securities lent by
you, you can make a request vide a standard format available with your DP.
Page. No
50

To Borrow Securities: You have to instruct your DP through a standard format (which is
available with your DP) to borrow securities from the intermediary.
If the intermediary accepts your request, the securities will be moved from the
intermediary's account to your account. If you wish to return the securities borrowed by
you, you can make a request vide a standard format available with your DP.
Transmission Of Securities: Transmission of securities due to death, lunacy, bankruptcy,
and insolvency or by any other lawful means other than transfer is also possible in the
depository system. In the case of transmission, the claimant will have to fill in a
transmission request form, (which is available with the DP) supported by valid documents.
The DP, after ensuring that the application is genuine, will transfer securities to the account
of the claimant. For this, the claimant must have a depository account. The major
advantage in transmission of dematerialized holdings is that the transmission formalities
for all securities held with a DP can be completed in one go, unlike in the case of share
certificates, where the claimant will have to interact with each issuing company or its R&T
Agent.
In case where the deceased was one of the joint holders in the Client account, the
surviving client(s) shall be the person(s) recognized by depository as having title to the
securities held in that joint Client account. In case where the deceased was a sole holder of
the Client account, his legal heir(s) or the legal representative(s) will be the person(s)
recognized by depository as having title to the securities held in that sole Client account.
Page. No
51

Security: National Security and Depository Limited claims to have undertaken sufficient
security measures. These measures are:
A DP can be operational only after registration by Sebi, which is based on the

recommendation from NSDL and Sebis own independent evaluation. Sebi has
prescribed criteria for becoming a DP in the regulations.
DPs are allowed to effect any debit and credit to an account only on the basis of
valid instruction from the client.
Every day, there is a system driven mandatory reconciliation between the DP and
NSDL.
There are periodic inspections into the activities of both DP and R&T agent by
NSDL. This also includes records based on which the debit/ credit are effected.
The data interchange between NSDL and its business partners is protected by
standard protection measures such as encryption. This is a SEBI requirement.
There are no direct communication links between two business partners and all
communications between two business partners are routed through NSDL
All investors have a right to receive their statement of accounts periodically from
the DP.
Every month NSDL forwards statement of accounts to a random sample of

investors as a counter check.
Page. No
52
In the depository, the depository holds the investor holdings on trust. Therefore, if
the DP goes bankrupt the creditors of the DP will have no access to the holdings in
the name of the clients of the DP. These investors can then either dematerialize
their holdings or transfer them to a different account held with another DP.
Investor grievance: All grievances of the investors are to be resolved by the

concerned DP. If they fail to do so the investor has the right to approach NSDL.
Insurance Cover: NSDL has taken a comprehensive insurance policy to protect the
interest of the investors in cases of failure of the DP to resolve a genuine loss. The
details of the policy is as under:
Upper limit per claim: Rs200mn.
Number of claims allowed: unlimited
Minimum value of the claim: Rs150, 000
To cover claims valued less than Rs150, 000 NSDL has an investor protection fund
in place.
Besides all these safety measures efforts have been done to make this electronic system
foolproof.
Demat Shares: Are They 100% Safe
When you buy physical shares from the stock market, you could never be certain of
the validity of the title of shares. There were many reasons- the sellers' signature did not
match, or the certificates were fake, forged or stolen, and so on.
Page. No
53

Demat shares are supposed to obviate these problems. Buying shares in the demat
form always guarantees you a good title as soon as the settlement is over. The biggest
attraction of trading in demat shares is that the shares you buy come with a clean title and
immediately after the settlement on the relevant stock exchange.
Rule 100 of market regulator SEBI determines whether the shares delivered in a
settlement, are good or not. Under rule 100, the shares that have been transferred the
company can still withdraw any number of times, if a transfer is found to be invalid for any
reason.
Suppose a sells physical shares to B and B gets them dematerialized. Later B sells
the shares in the stock exchange and C buys them. Meanwhile A discovers that his share
certificates were stolen and fraudulently sold by someone else. He gets a court order
restraining the company from further transferring the shares and attaching them (currently
in possession of C). This is known as 'stop transfer'. So C who has bought dematerialized
shares is now struck with the shares. He cannot sell these shares since they would be
frozen in his account
In demat shares, pre-demat problems about the validity of a share do not effect the
interest of the buyers after dematerialization. Shares go through a verification process at
the registrars' before they are dematerialized.
Therefore the responsibility lies with the registrar. The registrar must find a remedy
if the original transfer of shares, before their dematerialization comers under doubt. But
there is a catch. The company and its registrars are not responsible if the reasons for
Page. No
54

original transfer being invalid were not available at the time of dematerialization. Matters
have to be dealt with on a case-to-case basis. Which means that even demat buyer may find
that his shares have been frozen in his demat account. This kind of case has to be contested
in court by the parties involved.
This issue is not directly addressed in The Depositories Act, 1996. Sebis
regulations on depositories and depository participants also do not mention the issue.
Matters get more complex if an investor has traded further in shares of the same
company in his demat account. Demat shares are fungible and dont have distinctive
numbers. It is not easy to track the sale or trade of shares after they are dematerialized.
In a rare event of your DP going bankrupt or closing the operations, the interests of
the investors will be fully protected. In such a situation, the investors will be given an
option of either transferring the securities to a new DP or they may rematerialise the
securities
Analysis of customer satisfaction

A. Sample size selected: 100
Total Number of customer available for survey: 100
Page. No
55

sample Available for survy
100
Series1
50
0
1
The sample size selected for the survey was 100.(Hundred) customers of KARVY
CONSLUTANT STOCK BROKING were available for survey. So opinion was taken to
know the customer satisfactions towards demat account.
1.Customer came to know the about KARVY FINANCIAL CONSULTANT

Total no. Of sample taken: 100
Page. No
56
1
Friends
47
2
News Papers/
Business Magazines
18
Online
10
Agent/Financial
14
Others
11
Friends
11%
14%
47%
News
Papers/BusinessM
agazines
Online
10%
Agent/Financial
18%
Others
Source: Survey Data
The above table and chart shows the respondents know KARVY FINANCIAL
CONSULTANT is from the friends is more. Nearly 47.00% of respondent will know .
18% of Customer through
News paper ,10% of Customer through online ,14% of
Customer through Agent and financial consultant and 11% of Customer know through.
Others.
Page. No
57

2.They are interested to visit KARVY FINACIAL CUNCALTANT
1
Yes
94
2
No
6
No
6%
Yes
No
Yes
94%
Source: Survey Data

The above table and chart shows the respondents interested to visit KARVY
FINANCIAL CONSULTANT 94 % and only 6% of Customer are not interested
to visit .
Page. No
58
3. They have been use service of KARVY FINACIAL CUNCALTANT

Because of visual pleasure ,hospitality, communication etc
Q-3
1
Agree
47
50
2
Just agree
45
47
3
No Opinion
8
4
Just Disagree
0
5
Disagree
0
45
40
30
Series1
20
10
0
Agree
Just agree No Opinion
0
Just
Disagree
0
Disagree
Source: Survey Data

The above table and chart shows they have been use service of KARVY
FINACIAL CUNCALTANT 47% of Customer agree ,and , 45% of Customer just
agree only 8% of Customer are not interest to give there opinion .
Page. No
59

4.They will definitely use service KARVY FINACIAL CUNCALTANT because
attitude of employee.
Q-4
1
Agree
69
2
Just agree
24
No Opinion
7%
Just agree
24%
3
No Opinion
7
4
Just Disagree
0
5
Disagree
0
Just Disagree
0%
Disagree
0%
Agree
Just agree
No Opinion
Agree
69%
Just Disagree
Disagree
Source: Survey Data

The above table and chart shows they have been use service of KARVY
FINACIAL CUNCALTANT Because of there attitude 69% of Customer
agree ,and , 24% of Customer just agree only 7% of Customer are not interest to
give there opinion.
Page. No
60

5.they will definitely use of KARVY FINACIAL CUNCALTANT because what they
benefit get from them.
Q-5
1
Agree
50
2
Just agree
41
3
No Opinion
8
4
Just Disagree
1
5
Disagree
0
0%
8%1%
Agree
Just agree
50%
41%
No Opinion
Just Disagree
Disagree
Source: Survey Data

The above table and chart shows they have been use service of KARVY FINACIAL
CUNCALTANT Because what benefit get from them 50% of Customer agree ,and ,
41% of Customer just agree only 8% of Customer are not interest to give there opinion.1%
of Customer just disagree .
Page. No
61
6. They will interested KARVY FINACIAL CUNCALTANT because they

introduce new scheme and we get benefit .
Q-6
1
Yes
86
2
No
14
No
14%
Yes
No
Yes
86%
Source: Survey Data

The above table and chart shows they have been interested to use service of KARVY
FINACIAL CUNCALTANT because they introduce new scheme and we get benefit .
86%of Customer say Yes .only 14% of Customer are not satisfied ..
Page. No
62

7.They use KARVY FINACIAL CUNCALTANT they know customer value and
money value
Q-7
1
Agree
54
60
50
40
2
Just agree
39
3
No Opinion
6
4
Just Disagree
1
5
Disagree
0
54
Agree
39
Just agree
30
No Opinion
20
Just Disagree
10
Disagree
0
Source: Survey Data

The above table and chart shows they have been interested to use service of KARVY
FINACIAL CUNCALTANT because they know customer value and money
value.54% of say agree .39% Customer say just agree .6%of parole say no opinion
and only 1% of Customer say just disagree.
Page. No
63
8.they want to specify use KARVY FINACIAL CUNCALTANT better then other .
Q-8
1
Agree
41
2
Just agree
37
3
No Opinion
20
Just
Disagree
1% Disagree
No Opinion
1%
20%
4
Just Disagree
1
5
Disagree
1
Agree
41%
Just agree
37%
Source: Survey Data

The above table and chart shows they have been specifically said KARVY FINACIAL
CUNCALTANT better then other Dp services. 41% of customer agree.31% of
customer are just agree. 20 % of Customers are not given any opinion. Only 1% of
customer just disagree 1% of customer disagree.
Page. No
64
9a. Demat
Extremely satisfied Satisfied

38
46
38
Neither satisfied/nor
Unsatisfied
16
Extremely
Unsatisfied unsatisfied
0
0
46
unsatisfie
d
Extremely
unsatisfied
Neither
satisfied/n
or
unsatisfied
Satisfied
Extremely
satisfied
16
S1
Source: Survey Data

The above table and chart shows demat services offered is satisfied.38% of the
customers are extremely satisfied, 46% Satisfied,16%of of customer Neither satisfied/nor
Unsatisfied.
Page. No
65
b. Settlement (Selling/ Buying)

b
Extremely
Satisfied
25
Satisfied
49
Unsatisfied
26
Extremely
Unsatisfied unsatisfied
0
0
Extremely satisfied
26%
0%
25%
Satisfied
unsatisfied
unsatisfied
49%
Extremely unsatisfied
Source: Survey Data

The above table and chart shows that service offered is Extremely
Satisfied
for25% of the respondents; 49% of respondent are satisfied and 26% of
respondent are having neutral opinion of the settlement service
Page. No
66
c. Freezing/Defreezing
c
Extremely
Satisfied
6
Satisfied
49
Unsatisfied
45
Unsatisfied
0
Extremely
unsatisfied
0
0
unsatisfied
0
1
45
unsatisfied
49
6
Satisfied
20
40
60
Extremely satisfied
Source: Survey Data

The above table and chart shows the services of freezing/defreezing 49% of the
respondent are satisfied. and Out of 45% of respondent who are respondent are having
neutral opinion about freezing/defreezing 6% of respondent are Extremely Satisfied with this
service because they are have understood the core concept.
Page. No
67

d. Loan Against Shares
d
Extremely
satisfied
22
Satisfied
33
Neither
satisfied/nor
unsatisfied
45
Unsatisfied
0
Extremely
unsatisfied
0
Extremely
satisfied
0%
22%
45%
Satisfied
Neither
satisfied/nor
unsatisfied
33%
unsatisfied
Extremely
unsatisfied
Source: Survey Data

The above table and chart shows most of the respondent are having neutral
opinion i.e., 45% and 33% have satisfied this service. 22% of respondent are Extremely
satisfied.
Page. No
68

f. Share Trading
49
Unsatisfied
4
Unsatisfied
0
Extremely
unsatisfied
0
Neither
satisfied/nor
unsatisfied
unsatisfied
Extremely
unsatisfied
47
Extremely
satisfied
60
50
40
30
20
10
0
Satisfied
47
Satisfied
e
Extremely
Satisfied
49
Source: Survey Data

The above table and chart shows the service of share trading 49% of the
respondent have Extremely Satisfied with this service and 47% of respondent are satisfied;
In all we can say that 96% respondent have satisfied with the services of
Share trading.
Page. No
69

i. Periodic statements
f
Extremely
Satisfied
48
Satisfied
44
unsatisfied
8
Unsatisfied
0
Extremely
unsatisfied
0
Extremely satisfied
8% 0%
Satisfied
48%
44%
unsatisfied
unsatisfied
Source: Survey Data

The above table and chart shows the services of the Periodic statements 48% of
the respondent are extremely Satisfied & 44% of the respondent are satisfied with this
service. In all 92%(appr) of respondent have satisfied with this service.
Page. No
70

h. Telephone Quires
g
Extremely
Satisfied
40
Satisfied
48
Unsatisfied
Unsatisfied
12
0
Extremely
unsatisfied
0
60
50
Satisfied
Extremely
satisfied
40
30
Series1
20
10
0
0
Neither
satisfied/nor
unsatisfied
Extremely
unsatisfied
unsatisfied
3
4
5
6
Source: Survey Data

The above table and chart shows the 48% of the respondent are satisfied with the
Telephonic service; 40% of the respondent are mostly satisfied & In all 88% of the
customer satisfied; 12% having neutral opinion.
Page. No
71

h. Co-operation by Staff
h
Extremely
satisfied
60
Neither
satisfied/nor
unsatisfied
5
Satisfied
35
unsatisfied
0
Extremely
unsatisfied
0
46
60
50
40
30
60
20
35
10
0
Extremely
Series1
5
unsatisfied
satisfi ed
Source: Survey Data

The above table and chart shows overall 60% of the respondent are Extremely
satisfied;
35% of the respondents are satisfied & 5% of the respondents are having neutral
opinion.
Page. No
72

I. Bills acceptance .
I
Extremely
satisfied
50
Satisfied
32
16
Neither
satisfied/nor
unsatisfied
16
unsatisfied
1
Extremely
unsatisfied
1
Extremely satisfied
11
Satisfied
50
32
unsatisfied
unsatisfied
Extremely
unsatisfied
Source: Survey Data

The above table and chart shows overall 50% of the respondent are Extremely
satisfied;
32% of the respondents are satisfied &16% of the respondents are having neutral
opinion..
Page. No
73
10. Dissatisfied with services/ scheme

1. Frequently reminders are given to karvy consultant ltd., for 4
update the information
2. Irregular receipt of Holding/Transaction statement
1
3. Improper attention given to the enquires
5
4%
4. Improper format of Holding/Transaction statement

5. Billing problems
1
1
1%
1%
6. Inadequate information
7. Others
2
0
2%
0%
a
4
b
1
c
5
d
1
e
1
1%
5%
f
2
6
5
5
4
b
c
3
2
2
1
d
e
f
0
1
Source: Survey Data

The above table and chart shows that 5% of the respondents are unsatisfied with
Improper attention given to the enquires.& 4% of the respondent are unsatisfied with
Frequently reminders are given to karvy consultant ltd., for update the information given
by DP. So proper communication with the customer & update information is required.
Page. No
74
11. Tariff Structure

11
Very high
13
High
25
Reasonable
62
70
Low
0
60
50
Veryhigh
High
40
30
20
10
Very low
0
resonable
low
1
1
verylow
Source: Survey Data

The above table and chart shows that 62% of the respondents think the
tariff structure of the KARVY CONSULTANT is very reasonable.25% of the respondent
thinks the tariff structure is high. 13% of the respondent feel the tariff structure is very
high.
Page. No
75
12. Rate of Satisfaction for DP services

12
0%
0
20%
0
70
40%
11
80%
53
100%
5
60
Veryhigh
50
High
40
resonable
30
20
60%
31
low
verylow
10
Source: Survey Data

The above table and chart shows that 53% of the respondent have satisfied
80% of service given by DP; 31% of the respondent have satisfied 60% of service and 11%
of the respondent have satisfied 40% of the service. only 5% of respondent have satisfied
100 of the service.
Page. No
76

13. Preference of own DP over other DP
13
Quality
service
35
Rate Charged
14
Nothing in particular
10
Safety
40
Reach
1
Qulity service
Reach
Safety
Nothing in
paricular
Qulity
service
Rate
Charged
Rate Charged
Nothing in
paricular
Safety
Reach
Source: Survey Data

The above table and chart shows that 40% of the respondents preferred this DP to
the DP because of Safety & 35% of the respondents preferred this DP to the DP because of
the quality service. In all 75% prefer KARVY CONSULTANT to the other DP because of
the Safety.
Page. No
77
QUESTIONNAIRE
Dear Sir/Madam
I am pleased to introduced myself as MBA student of PES&T Belgaum institute of
Management studies, Belgaum as pat of curriculum I have undertaken research to study
the Service analysis and customer satisfaction. towards depositary participant in
KARVY FININCIAL CONSULTANTS Dharwad the information provided by you
strictly kept confidential and for academic purpose only .
NAME
____________________________
ADDRESS
____________________________
____________________________
OCCUPATION:
1.
2.
____________________________ Phone No: __________
I came to know about KARVY FININCIAL CONSULTANTS from

1
2
3
4
Friends
News Papers
Online
Agent/Financial
/Business
Agency
Magazine
I am interested in visiting KARVY FININCIAL CONSULTANTS because

they provide quick and timely service.
1) Yes
3.
5
Others
2) No
I have been using service of KARVY FININCIAL CONSULTANTS

because of the low cost, visual pleasure, Hospitality, Communication, and new
concept of financial consultancy
1
Agree
2
Just Agree
3
No opinion
4
Just disagree
5
Disagree
4.
In future I will be definitely using the service of KARVY FININCIAL
CONSULTANTS because of the attitude of the employees towards customers.
1
Agree
2
Just Agree
3
No opinion
4
Just disagree
5
Disagree
Page. No
78
5.
I will definitely use service of KARVY FININCIAL CONSULTANTS because
of the benefit I get from KARVY FININCIAL CONSULTANTS
1
Agree
2
Just Agree
3
No opinion
4
Just disagree
5
Disagree
6.
I am interested in KARVY FININCIAL CONSULTANTS because of the new
scheme introduced frequently and benefit from such scheme
1) Yes
2) No
7.
I use KARVY FININCIAL CONSULTANTS because they know customer
value as well as money value of customers
1
Agree
8.
2
Just Agree
3
No opinion
4
Just disagree
5
Disagree
KARVY FININCIAL CONSULTANTS service of dp are better then other dp

services.
1
2
3
4
5
Agree
Just Agree
No opinion
Just disagree
Disagree
9. Express your satisfaction level about the following scheme/service please tick.
Extremely
Satisfied Neither
unsatisfie Extremely
Satisfied
satisfied/nor
d
Unsatisfied
Schemes/services
unsatisfied
a. Demat
b. Settlement
(Selling/purchasing)
c. Freezing/
defreezing Of
an account
d. Loan against
shares
e. Share trading
f Periodic statements
g. Telephone queries
h. Co-operation by
staff
i. Bills Acceptance
Page. No
79
10.
If you have faced any when dealing through your DP or you are unsatisfied with the
above mentioned services/schemes.
Frequently reminders are given to KARVY FININCIAL CONSULTANTS., for
update the information
Irregular receipt of Holding/Transaction statement
Improper attention given to the enquires
Improper format of Holding/Transaction statement
Billing problems
Inadequate information
Other specify___________________
11.
Please tick the following:

Tariff
Structure
12.
Very High
High
Reasonable
Low
Very Low
How do you rate the services of your DP

0%
20%
40%
60%
80%
13.
How do you justify your preference for your KARVY
CONSULTANTS DP over other DPs?
100%
FININCIAL
Quality
Service
Rates
Charged
Nothing in
particular
Safety
Reach
Page. No
80

14.
A) Your age (Yrs)
<25
B) Income (Pa)
<60000
2.4 L 3.6L
C) Education
Up to Xth
26-35
Suggestion
46-60
> 60
60000-1.2 L 1. 2 L 2.4 L
3.6 L 6.0.L
Graduate
D) Yearly of investment.
1L-5 L
5L-10L
15.
36-45
6.0 L 12.0 L
Post Graduate.
PhD.
Others.
>10L
______________________________________________
______________________________________________
Thank you for your co-operation
Page. No
81

code Sheet of Customer Response
Q9. Extremely Satisfied: 1; Satisfied: 2;Neither Satisfied/Nor Dissatisfied: 3;Unssatisfied:4;
Extremely Dissatisfied: 5+
Q11. Very High: 1;High: 2;Reasonable: 3;Low: 4;Very Low:
Q12. 0%: 1; 20%: 2; 40%: 3; 60%: 4;80%: 5;100%:
Q813. Quality Service: 1;Rates charged: 2;Nothing in particular: 3; Safety: 4;Reach: 5
DATA CODE - SHEET

Sl
No
1
9a 9b 9c 9d 9e 9f 9g 9h 9i 10a 10b 10c 10d 10e 10f 11 12 13a 13b 13c 13d 13e
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
3
1
4
3
1
4
1
4
1
3
2
1
3
1
4
1
3
Page. No
82

30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
5
3
1
4
4
3
1
4
3
4
1
4
1
2
3
1
2
3
2
1
3
1
2
4
2
1
4
2
1
2
4
Page. No
83

70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
1
4
1
4
2
1
4
2
5
4
1
Glossary
Account Freezing: The Depository Participant may freeze the account of a client
maintained with him on written instructions received by the Participant in that regard from
Page. No
84

the
client
concerned
in
the
form
specified
under
the
Business
Rules.
Account Opening: Any person willing to avail the services offered by a Depository shall
open an account with a Depository Participant.
Beneficiary: A person who benefits from a trust set up on his / her behalf & anyone who
benefits from the proceeds of a will
A person who benefits from a contractual or fiduciary relationship
Beneficiary ID No: Each beneficiary is allotted an ID No. generated by DP by which a
beneficiary is identified. This is similar to your Bank A/c No. Or the Folio No.
BSE: Bombay Stock exchange is one of the oldest stock exchanges in Asia with over
6,000 stocks listed.
Beneficiary Account: An investor or a broker who wants to hold shares in dematerialised
(demat) form and undertake scrip less trading must have a depository account called
beneficiary account with Depository Participant of his choice.
CDSL: Central Depository Securities Ltd is an organization promoted by the stock
exchange Mumbai, (BSE) in association with Bank of India, Bank of Baroda, State Bank
of India and HDFC Bank to provide electronic depository facilities for securities traded in
the equity and the debt market. CDSL is the second depository in India. Karvy is one of the
Depository Participants of CDSL.
Page. No
85

Client Id: Whenever any client opens an account with a Depository Participant he /she is
provided with an account number which is known as the beneficiary account number or the
Client Id. The combination of the Client Id and the Depository Participant Id is unique.
Deface: The client (registered owner) shall submit a request to the DP in the DRF for
dematerialisation along with the certificates of securities to be dematerialised. Before
submission, the client has to deface or cancel the certificates by writing "SURRENDERED
FOR DEMATERIALISATION.
Defreezing of an account: The client can request his depository participant to release the
suspension order and defreeze the account for regular operations. The Depository
participant shall defreeze the account only after receipt of the application for defreezing
signed by all the account holders
Delivery Instructions by client: In order to transfer securities from his account to another
a beneficial account owner must give an instruction to his / her Depository Participant. A
beneficial account owner must give instruction to his / her DP to transfer
DRN: When the securities are found in order with the details of the request as mentioned
in the form, the depository participant enters the details in the DPM (Depository
participant Module, provided by NSDL to the DP) a Dematerialization Request Number
(DRN) is generated by the system. The DRN so generated is entered in the space provided
for the purpose in the Dematerialization Request Form. The request is then released to DM
(Depository Module Depositorys software system). The DM forwards the requests to the
Issuer / R & T agent electronically. Once the DRN is confirmed or accepted by the Issuer /
Page. No
86

R & T agent the DM electronically authorize the creation of appropriate credit balances in
the clients account. The DPM shall credit the clients account automatically.
Electronic Public Offering (EPO): An initial public offering, or new issue of shares, in
which the process of applying for shares is handled electronically (via websites).
Freezing of an account: Any client can give instructions, in the prescribed form, to his
Depository Participant to freeze his account either for debit or for all operations. Only after
receipt of the application for freezing the account signed by all the account holders the
Depository Participant shall freeze the account till further notice received from the client in
this regard.
Fungible: Dematerialized shares do not have any distinctive numbers or certificate
numbers. These shares are fungible which means that 100 shares of a security are the
same as any other 100 shares of that security.
Hypothecation: The pledging of securities as collateral. A client having a beneficiary
account with a DP can hypothecate securities in electronic form against loan / credit
facilities extended by a pledge, who has a beneficiary account with a DP. The creation of
pledge / hypothecation will be initiated by the pledgor through its DP and the pledgee will
instruct its DP to confirm the creation of the pledge. The pledge / hypothecation so created
can either be closed on repayment of loan or invoked on default. After the pledgor repays
the loan to the pledgee the pledgor will initiate the closure of pledge / hypothecation. In
case of default by the pledgor in repaying the loan to the pledgee, the pledgee may initiate
invocation of pledge / hypothecation, after taking such steps as may be necessary as per
Page. No
87

the terms of the underlying agreement with the pledgor and the Bye Laws and Business
Rules of NSDL and SEBI Regulations. In case of hypothecation, the pledgor will instruct
its DP to confirm the invocation of the hypothecation.
Initial Public Offering (IPO) : The first offering of a companys shares to the public. The
shares offered may be existing ones held privately, or the company may issue new shares
to the public.
Inter Depository Instructions: Inter-Depository Transfer means transfer of securities
which are admitted for dematerialisation on both the depositories from an account held in
one depository to an account held in the other depository
ISIN: International Securities Identification Number (ISIN) is a code that uniquely
identifies a specific securities issue.
Market Trade: Trades which are settled through the Clearing Corporation / Clearing
House of an exchange are classified as " Market Trades ".
NSDL: The National Securities Depository Limited is an organisation promoted by the
Industrial Development Bank of India, the Unit Trust of India and the National Stock
Exchange of India Limited to provide electronic depository facilities for securities traded
in the equity and the debt market. NSDL commenced its operations in the year 1996 and is
the first depository in India.
Page. No
88

NSE: National Stock Exchange is one of the leading stock exchanges in India. The NSE
has been set up by leading institutions to provide a modern, fully automated screen
based trading system with national reach.
Off Market Trade: Trades which are not settled through the Clearing Corporation /
Clearing House of an exchange are classified as " Off Market Trades ". Negotiated trades
which are not cleared and settled through the Clearing Corporation / Clearing House are
off-market trades.
Pledge: To deposit personal property as security for a personal loan of money. If the loan is
not repaid when due, the personal property pledged shall be forfeit to the lender. A client
(pledgor) having a beneficiary account with a Depository Participant can pledge securities
in electronic form against loan / credit facilities extended by a pledgee, who too has a
beneficiary account with a Depository Participant.
Rematerialisation: It is the process by which a client can get his electronic holdings
converted into physical certificates. The client has to submit the rematerialisation request
to the DP with whom he has an account. The DP enters the request in its system, which
blocks the clients holdings to that extent automatically. The Issuer / R& T agent then
prints the certificates, dispatches the same to the client and simultaneously electronically
confirms the acceptance of the request to NSDL. Thereafter, the clients blocked balances
are debited.
Registrar and Transfer Agent (RTA) : A transfer agent and registrar for a publicly held
company keeps record of every outstanding share certificate and the name of the person to
Page. No
89

whom it is registered. When the share changes hands, the transfer agent transfers the
ownership of the stock from the sellers name to the buyers name. The registrar reconciles
all transfer records and makes sure that the number of shares debited is equal to the number
of shares credited.
Settlement: It is the process by which investors pay for shares they have bought and
receive payment for shares they have sold. It is also the process by which the investor
delivers the shares he has sold to the clearing house and receives the shares which he has
purchased from the clearing house of a recognized stock exchange.
Settlement Day: The day on which purchased securities are due for delivery to the buyer
and payment is due to be made to the seller.
Statement of Holding: A statement of holding details out the current balance in a
depository account. At least once every fortnight the Depository participant sends a
statement of Holdings to its clients.
Statement of transaction: A statement of transaction details out the various transactions
done through that depository account. At least once in every fortnight the Depository
Participant sends a statement of transaction to its clients. Karvys Online Demat services
enable its clients to view their statement of transactions on the net.
Transferability of Shares: Shares in a company are freely transferable, subject to certain
conditions, such that no shareholder is permanently or necessarily wedded to a company.
When a member transfers his shares to another person, the transferee steps into the shoes
of the transferor and acquires all rights of the transferor in respect of those shares. For
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90

dematerialised shares the depository participant debits and credits the account of the client
with an authorisation from such client.
Transmission: Transmission of shares denotes a process by which ownership of share is
transferred on legal heir or to some other person by operation of law. In case of
transmission no transfer deed and no stamp duty is required. Transmission of shares
generally takes place in case of death, insolvency or mental illness or purchase in case of
shares by court or in case of amalgamation, where the amalgamating company holds shares
in various companies.
Bibliography
Web sites
www.karvy.com
www.indiainfoline.com
www.sharekhan.com
info@nsdl.co.in
Books
Company books & Brochures
NSDL Books
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Executive Summary: A Study of Customer Satisfaction Towards Depository Participants

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A Study of Customer Satisfaction towards Depository Participants

To know the function of DP.

To know the percentage of have satisfied the service of DP.

To know how demat account is helping in the trading

To know the exception of the customer.

To know the loops and draw backs of DP.

Belgaum Institute of Management Studies (MBA)

A Study of Customer Satisfaction towards Depository Participants

Belgaum Institute of Management Studies (MBA)

A Study of Customer Satisfaction towards Depository Participants

Belgaum Institute of Management Studies (MBA)

A Study of Customer Satisfaction towards Depository Participants

Design of the study

To know the function of DP.

To know the percentage of have satisfied the service of DP.

To know how demat account is helping in the trading

To know the exception of the customer.

To know the loops and draw backs of DP.

Belgaum Institute of Management Studies (MBA)

A Study of Customer Satisfaction towards Depository Participants

Sampling Procedure: From large number of customer of KARVY STOCK

Field Study: Directly approached respondents.

DATA COLLECTION METHOD:

Record & Report, Magazine & Websites.

technique used for survey is questionnaire

to collect information from the respondent

Since segment wise investor is available in KARVY STOCK BROKING Ltd.

Belgaum Institute of Management Studies (MBA)

A Study of Customer Satisfaction towards Depository Participants

Belgaum Institute of Management Studies (MBA)

A Study of Customer Satisfaction towards Depository Participants

Belgaum Institute of Management Studies (MBA)

A Study of Customer Satisfaction towards Depository Participants

Deals in distribution of various investment products, viz, equities,

Member Hyderabad stock Exchange (HSF)

KARVY STOCK BROKING LTD.

Member-national stock exchange (NSE)

KARVY CONSULTANTS LTD

Transfer agency services for corporate & mutual funds

Registrar for IPO\book building

Depositary participant services

Belgaum Institute of Management Studies (MBA)

A Study of Customer Satisfaction towards Depository Participants

Registered with both NSDL/CDSL

It enable services MT/call center /data classification

Karvy .com comprehensive financial advisory site

KARVY INVESTER SERVICES LTD.

Deals in issue management, investor banking & merchant banking of fixed

Trading through BSE

Registered as DP both with NSDL & CDSL

Serving over 2 lac investors

Online connectivity at Hyderabad, Lucknow &Bangalore

Ranked among the top 5 DPS in the country

Web based customer information

Provision of service in over 75 locations

First strategic initiative into global processing

Among the top MT companies in India

Belgaum Institute of Management Studies (MBA)

A Study of Customer Satisfaction towards Depository Participants

Strategic intent: to develop a comprehensive financial services portal

Investor servicing: mutual funds, corporate shareholders & depository

Distribution of financial products