Jayati Project
Jayati Project
Jayati Project
AT
ON
Submitted by:
Submitted to:
Jayati Poddar
Faculty Guide- Jyotika Kukrety
1340
Company Guide: Mr. Vinay Singh
(2010-2012)
My guide for the training was Mr. Vinay Singh (Branch manager) and Mentor
lecturer Mrs.Jyotika Kukrety.
I, further declare that this project work is the outcome of my efforts and not a
replica of any other report/work submitted to any university or boards.
Place: Kanpur
ACKNOWLEDGEMENT
I would like to express my gratitude to my project guide Mr. Vinay Singh for
his constant encouragement and guidance without the task would not have
been completed.
Last but not the least I would like to thank my parent and friends for their support.
THANKYOU ALL
Jayati Poddar
STOCK HOLDING CORPORATION OF INDIA LTD.
EXECUTIVE SUMMARY
The study is about describing the different services and products offered at
SHCIL.
Project mainly deals with how the resources of the organization are used in
their day to-day activities.
Stock holding has various financial Products and Services to be offered to the
clients but problem lies in the low promotional activities undertaken by it,
due to which though it has the services not offered by other DP's it fails in
captivating customers.
The past few years have seen a phenomenal growth in the capital market
leading to an explosion in transaction holding despite the transparency
offered by NSE and BSE, the primitive settlement and transfer process kept
the biggest chunk of the market risk- bad delivery, delayed transfer, fake
certificates, loss and theft etc, unresolved. The Depositories is the answer to
such risk and problems.
The main objective of this project is concerned with studying the Depository
system the services provided by the depositories to the customers and what
are procedures for opening the various types of accounts like Demat a/c etc
Thus, I got interested to conduct study on the Depository Services under the
title “Descriptive analysis of Depository Participants with reference to Stock
Holding Corporation of India limited.
How to open demat account
Before opening the account the form can be collected from any of our branches.
Write bank account number and 9 digit MICR number correctly issued by your
bank as it will facilitate effective disbursement of monetary corporate actions into
your account.
Fill the details regarding PAN card and all financial details required to be filled
For proof identity and address proof , there must be any one among them-
passport, voter ID, driving license, college ID.
Once the account is opened then, you will be allotted client identity number.
A request letter ( format available on the site) signed by all the holders is required
Along with this Photocopy of proof of identification and proof of new address is
required. Please also bring the originals with you for verification purpose. Client or
the authorized bearer can visit our branch for the same. Copy of the latest transaction
Change in signature
Request letter (format available) signed by the client. The new signature to be attested
by the bank. The request may be submitted along with the copy of POI and the
Addition of PAN/Map in
These accounts can be operated by both the client and the POA Holder. In case the
client has given the POA in favour of 2 or more persons, then the mode of operation of
the POA holders is also to be mentioned. In case the power of attorney is to be revoked,
a letter signed by the client is required.
Request letter signed by all the holders, with a photocopy of the recent telephone bill
Instruction by Fax
Clients may avail this facility by faxing their delivery instructions to SHCIL, by
executing the fax indemnity.
For recording any change in the standing instruction (for receiving direct credits) in
If you have given POA details and you wish to operate the account yourself, the POA
Transmission of account takes place in the event of death of the beneficiary account
- When the account has joint holders and one of the holder dies.
If the shares are transmitted to beneficiary accounts of surviving holders and this
Over and above the documents explained above, the client master list from the
Freezing of account
An account is frozen/suspended
Defreezing of account
Purpose
The past few years have seen a phenomenal growth in the capital market leading to
an explosion in transaction holding despite the transparency offered by NSE and
BSE, the primitive settlement and transfer process kept the biggest chunk of the
market risk- bad delivery, delayed transfer, fake certificates, loss and theft etc,
unresolved. The Depositories is the answer to such risk and problems.
Introduction of the depositories has paved the way for instituting an infrastructure
for eliminating these risks and increasing the efficiency of the system. The purpose
of this study is to provide information to both the organization and the
investors/savers, providing to the former present state and future prospect and to
the later differences among the services provided by the various depository
participants.
This Analysis will help to have a better understanding about where SHCIL stands
in the market today and also to compare various DPs on certain parameters
Objectives
3. The entire study is based on the information provided by the various respondents
4. The policy of the company does not allow getting all the information.
STOCK HOLDING CORPORATION OF INDIA LTD
INTRODUCTION TO SHCIL
Introduction to SHCIL
Background
1. Depository:
2. Depository Participant
Benefits of Depository
7. Non - Cash corporate benefits, viz. Bonus / Rights - direct credit into
electronic form.
Industry Profile
Industry profile
Financial Markets
Stock Holding Corporation Of India Ltd. (SHCIL), the premier custodian of
Indian Capital Market providing services of international standards, is
geared up to reposition itself in the changed scenario.
The corporation has restructured and geared itself to serve the growing needs of
individual investors in the paperless environment. The organization in its
willingness to provide its state of art of financial services in securities industries to
the various segments of the investors has expanded itself to more than 100 cities
across the country. SHC desires to give investors the time and attention in
monitoring the performance of their securities consistently. All aimed at providing
the investor with optimum financial gain.
India has a well established capital market mechanism where in effective and
efficient transfer of money capital or financial resources from the investing class to
the entrepreneur class in the private and the public sector of the economy occur.
Indian capital market has a long history of organized trading which started with the
transaction in the loan stocks of the East India Company; from that time it has
undergone drastic changes to meet the requirements of the globalization.
There has been a shift of house hold savings from physical assets to financial
assets, particularly the risk bearing securities such as shares and debentures.
Capital market structure has also undergone sea changes with number of financial
services and banking companies, private limited companies coming into the scene
which made the competition in the market stiffer.
CAPITAL MARKET
The capital market consists of primary market and secondary market segments.
The primary market deals with the issue of new instruments by the corporate sector
such as equity shares, preference shares and debentures. The public sector
consisting of central and state governments, various public sector industrial units
(PSUs), statutory and other authorities such as state electricity boards and port trust
also issue bonds.
The primary market in which public issue of securities is made through a
prospectus is a retail market and there is no physical location. Direct mailing,
advertisements and brokers reach the investors. Screen based trading eliminates the
need of trading floor.
The secondary market or stock exchange where existing securities are traded is an
auction arena. Since 1995, trading in securities is screen based. Screen based
trading has also made an appearance in India. The secondary markets consist of 23
stock exchanges including the NSE and OTCE and Inter Connected Stock
Exchanges of India ltd. The secondary market provides a trading place for the
securities already issued to be bought and sold. It also provides liquidity to the
initial buyers in the primary market to re-offer the securities to any interested buyer
at a price, if mutually accepted. An active secondary market actually promotes the
growth of the primary market and capital formation because investors in the
primary market are assured of a continuous market and they can liquidate their
investments in the stock exchange.
DEPOSITORY
Depository is an organization where the securities of a share holder are kept
in the electronic form at the request of the shareholder through a medium of a
depository participant (DP). The principal function of a depository is to
dematerialize securities and enable their transactions in book form
electronically.
Functions of Depository:
Dematerlisation
One of the primary functions of depository is to eliminate or minimize the
movement of physical securities in the market. This is done through
converting securities held in physical form in to holdings in to back entry
form.
Accounts Transfer
The depository gives effects to all transfers resulting from the settlement of trade
and other transaction between various beneficial owners by recording entries in the
accounts of such beneficial owners.
Transfer and registration
A transfer is a legal change of ownership of a security in the records of the
issuer. Transfer of securities under demat occurs merely by passing book
entries in the records of the depositories, on the instructions of beneficial
owner.
Pledge and hypothecation
Depositories allow the securities placed with them to be used as collateral to
secure loans and other credits. The securities pledged are transferred to a
segregated or collateral account through book entries in the records of the
depository.
Linkages with clearing system
The clearing system performs the functions of ascertaining the pay-in (sell) or
pay (buy) of brokers who leave traded on the stock-exchange. Actual delivery
of securities to the clearing system from the selling brokers and delivery of
securities from the clearing system to the buying broker is done by
depository.
To achieve this, depositories and the clearing system are linked
electronically.
To handle the securities in electronic as per the Depositories Act 1996, two
depositories are registered with SEBI. They are: National Securities
Depository Limited (NSDL), Central Depository Services (India) Limited
(CDSL).
DEPOSITORY PARTICIPANTS
5. Connectivity:
The DP should maintain continuous electronic communication with each
Depository in which it is participant.
6. Monitoring, reviewing & evaluating internet systems &
controls:
DP should have an adequate mechanism for the purposes of reviewing monitoring
and evaluating its internal accounting controls and systems. It has to get an audit
done on quarterly basis.
7. Reconciliation:
The DP shot reconcile its records with every depository in which it is participant
on a daily basis. The NSDL system is designed to do this automatically every day
at the end of the day (EOD).
8. Returns:
The DP should submit periodic returns to SEBI and to every depository in which it
is a participant.
9. DP to indemnify depository
A DP has to indemnify the depository, its officers and employees for all costs, fees,
expenses, liability, taxes, actual losses and damages of any nature whatsoever
suffered like failure to company with laws, failure to deliver eligible securities etc..
11. Insurance
DP‟s should take appropriate insurance cover to insure against losses arising from any
business risk and system failure.
12. Record Of Services
The DP should maintain and preserve the documents for all transactions for a
minimum period of 5 years.
13. DP to ensure integrity and back-up of data
While DP‟s maintain electronic records, they should ensure the integrity of the data
processing system. All necessary precautions should be taken to ensure that the
records are not lost, destroyed. It should be tampered with sufficient back-up of
records should be taken and made available at all times at different places. All
DP‟s must comply with the rules of SEBI. If not, SEBI may cancel the registration
of DP.
GOVERNING BODIES OF DEPOSITORY PARTICIPANT
Governing bodies of depository participants
National Securities Depository Limited (NSDL)
Management of NSDL:
NSDL is managed by professional board of director. The managing director
conducts the day to day operations. To assist the MD in his functions, the board
appoints an executive committee of not more than 16 members. The eligibility
criteria and period of nomination of the members of eligibility criteria etc. are
governed by the bye-laws of NSDL in this regard.
Bye-laws of NSDL:
Function of NSDL:
Central depository services of India ltd were the second depository to be granted
the commencement certificate by SEBI on 8 February 1999, inaugurated on 15
July 1999. It is promoted by the Bombay stock exchange, in association of bank of
India. Both NSDL and CDSL interface with investors through their service
providers known as DP. The depository is interconnected. It is possible to transfer
shares from one depository to another.
CDSL was promoted by The Stock Exchange, Mumbai (BSE) jointly with leading
banks such as State Bank of India, Bank of India, Bank of Baroda, HDFC Bank,
Standard Chartered Bank, Union Bank of India and Centurion Bank. CDSL was set
up with the objective of providing convenient, dependable „and secure depository
services at affordable cost to all market participants.
Once the holdings of investors are dematerialized, the question of bad deliveries
doesn‟t arise because both transfer deed and share certificate are eliminated in
depository system.
Dealing with physical securities have the associated risks of loss of certificates
during movements to and from the registrars. These expose the investor to cost of
obtaining duplicate certificates, advertisement etc., such problems don‟t arise in the
depository environment.
3. No stamp duty:
No stamp duty for transfer of equity instruments and units of mutual funds in this
system.
The exclusive demat segment follow rolling settlement of T+2 days which enables
faster turnover of stock and enhance liquidity with the investor.
6. Buyer is secured:
In physical environment, the buyer is not secured since the shares purchased may
not be transferred. This is not the case with depository system.
NSDL provides for direct credit of non-cash corporate entitlements like rights,
bonus etc., to an investors account ensuring faster disbursement.
This increases from Rs.l0 lakh to Rs.20 Lakh per borrower. There is also a
reduction in minimum margin from 50% to 25% by banks to advances against
demat securities.
10. Reduction in brokerage:
Brokers may provide a reduction in the brokerage of 0.25% to 0.5% for trading
in dematerialised securities as it reduces their back office cost of handling
paper.
11. Reduction in handling huge volumes of paper:
In the physical environment every entity involved in purchase or sale of securities
was to handle paper and pass on the paper to the next entity. But in the depository
system only the delivery instruction to be given by the client is in the form of
paper.
12. Periodic status reports:
Investors have to inform the change of address which will be reflected in the
database of all the companies where the investor is a registered holder of securities.
An account holder can get securities in all companies transmitted transferred to his
account by completing formalities with a single entity.
A natural guardian is not required to take court approval for selling demat
securities on behalf of a minor.
Opportunities like pledge / hypothecation and stock lending are given specifically
by depository system. Many safety measures like investor grievances, insurances
cover, computer and communication infrastructure, periodic review, certificate of
registration were made necessary to protect investors.
STOCK HOLDING CORPORATION OF INDIA
LIMITED
COMPANY PROFILE
STOCK HOLDING CORPORATION OF INDIA
LIMITED
Stock Holding Corporation of India ltd (SHCIL) was incorporated under the
companies Act, 1956 on July 28, 1986 at the initiative of the Government of India,
with an authorized capital of Rs.25 cores and a paid up capital of Rs.10.5 cores,
subscribed by seven All India financial and investment institutions and insurance
companies, viz.
Industrial Development Bank of India (IDBI)
Unit Trust of India (UTI)
Life insurance corporation of India (LIC)
ICICI Ltd
Industrial finance corporation of India Ltd (IFCI)
Industrial Investment Bank of India (IIBI)
General Insurance corporation of India and its subsidiaries, viz.
1. Oriental insurance co ltd
2. New India insurance co ltd
3. National insurance co ltd
4. United India insurance co ltd.
SHCIL was incorporated as a public limited company on July 28, 1986 and
provides custodial services to institutional investors and depository services to
retail investors. SHCIL commenced operations in August 1988 and has been
providing custodial and related services of international standards for nearly a
decade to the promoter and other institutions, foreign institutional investors (FIIs),
commercial banks and mutual funds.
It is headed by luminaries from its promoter institutions who constitute its Board of
Directors and take policy decisions pertinent to the affairs of the corporation. A
senior management team that reports to the Managing Director and the CEO aids,
assists and strategies business lines for the Corporation.
The primary focus of the corporation was specific – to set up custodial services of
international standards in India and in the process to manage the entire array of
post trade activities of Financial Institutions and Foreign Institutional Investors
with dedicated client relationship teams and state-of-the-art reporting systems.
The corporation quickly garnered nearly 70% market share of the domestic
custodial business and the financial figures shot up impressively for the first
decade of it existence.
SHCIL has also received “No Action Letter” from Securities Exchange
Commission (SEC) of USA, which renders it an eligible institution to hold assets
of US-based funds.
SHCIL subsidiaries:
This vision of the company is slowly being achieved with the foray of the
company into new financial services and products into its portfolio the latest
to be the Insurance product, which would be soon distributed.
1. To retain the No. 1 position in the DP industry by being ahead of all other DP service
providers with the innovative use of technology would be soon distributed.
4. To channel technology to make convenient products for financial market that give
quantum benefits to investors, corporate houses and brokers.
5. To reach 37 million Internet users in the years to come with e-commerce projection
scaling USD 1.7 billion.
6. To move with speed and ease, diversifying into new areas, considerably on others and
sharpening its focus and paradigms.
8. To evolve a new strategy to emerge as a broad based financial powerhouse in the years
to come.
9. To find ways to make information and reporting system more effective for the
institutional clients.
10. To expand to the South-East Asia, with the aim of becoming the leader.
2. SHCIL has around 20% market share i.e. over 8 lakhs demat accounts.
3. SHCIL has approx, 50% market share of delivery- based transaction which
amount to
3.Customer First
4. Relationship
Building
PRODUCT PROFILE
1. ADDSHARES
2. FUNDINVEST
3. GOI BONDS
4. INSURANCE
5. PENSION FUNDS
1. ADDSHARES
Introduction
1· Tie-up with reputed banks which offer you the most competitive interest rates in
the market.
2· You can use the shares in your free account as collateral and take a loan from
any of our empanelled banks.
Advantages
Our tie ups with banks give you a wider range of banks to choose from. This leads
to a wider range of specified and non-specified shares to get loan against.
The add shares team helps you with the paper formalities precedent to a loan. You
can now get a loan at a competitive interest rates and Margins. This is a resultant of
their tie up with a wide range of banks.
· Add shares simplify long-winded loan procedures for you and facilitates early
disbursements of funds.
· Add shares are available at any of our branches numbering over 120.
3. FUNDINVEST
Introduction
4. GOI BONDS
Advantages
Hassle free maintenance: The GOI Bonds are held in electronic form in an account
called Bond Ledger Account. This ensures smooth investing minus paperwork.
1. Electronic Clearing Services: You can avail of Electronic Clearing System
(ECS) services. This ensures automatic credit of benefits and redemptions
when they accrue.
2. Easy access: You can apply for subscriptions into these Bonds in any SHCIL
center across the country.
3. Dispatch: Certificate of Holdings is dispatched to the client through courier on
realization of subscription.
5. INSURANCE:
Introduction:
SHCIL, a company promoted by Insurance majors & Financial Institutions, is a
Corporate Agent of LIC for Life Insurance products and NIA for General
Insurance products.
SHCIL has a dedicated team of IRDA Certified Insurance Advisors to provide all
services relating to Insurance. We also provide Free Professional advice to clients
on
need base insurance. SHCIL has 200 plus odd Branches all over India to take care
of all your Insurance related queries and needs.
LIC products:
1. KEY MAN INSURANCE
Key Man Insurance is an insurance taken by a business firm on life of an employee
(Key Man) whose services contribute substantially to the success of the business of
the firm.
The object of Key man insurance is to indemnify business firm from the loss of
earnings may occur because immediate replacement of the Key Man may not be
possible. Section 37 (1) of the Income Tax Act ,1961 provides that any expenditure
laid out or
expended wholly and exclusively for the purposes of business or profession shall
be
allowed as a deduction in the computation of income from business or profession.
Only Partnership firms and Companies are eligible for Key Man Insurance.
2. CHILDREN POLICY
KOMAL JEEWAN Plan 159
Under this children‟s plan, the payment of premium ceases on policy
anniversary immediately after the child attains 18 years of age. The plan,
besides offering risk cover, also offers payment of sum assured in
installments at age 18, 20, 22, 24 and guaranteed and loyalty additions, if
any, at 26 years of age.
JEEWAN KISHORE Plan102
1. High bonus from day one.
2. Child becomes owner of the policy automatically at the age of 18 years.
JEEWAN CHAYYA Plan 103
1. Ideal for parents having less than a year old child.
2. Makes provision for education/ marriage of the child.
3. Extra benefit of waiver of premium in case of death of the policy holder.
This policy is given under non-medical scheme up to sum assured of Rs.1 lakh,
3. ENDOWMENT POLICY
ENDOWMENT WITH PROFITS Plan 14
1. Moderate Premiums
2. High bonus
3. High liquidity
4. Savings oriented
This policy not only makes provisions for the family of the Life Assured in event
of his early death but also assures a lump sum at a desired age. The lump sum can
be reinvested to provide an annuity during the remainder of his life or in any other
way considered suitable at that time.
4. RETIREMENT PLAN
Its once again that time of the year when most of you are on the look out for tax
saving avenues for investment. And for most, insurance has been on the top of the
list of choices. While earlier, buying insurance was mainly for tax benefits, but
these days with increased awareness, consumers have been narrowing down on
picking up the right policy that suits their future needs.
NIA Products:
1. MEDICLAIM POLICY
2. FIRE INSURANCE
3. PRIVATE CAR INSURANCE
4. HOUSEHOLDER‟S POLICY
MEDICLAIM POLICY
This insurance policy can be used to protect the insured party against expenses
incurred for hospitalization for illness/ injury/ diseases as well as domiciliary
hospitalization.
Suitable for:
1. Each and every person aged between 5 and 75 years of age. Children aged
between 3 months and 5 years have to be insured along with their parents.
2. Government or private institutions for their employees.
3. Clubs or associations for their bona-fide members.
FIRE INSURANCE
This policy offers protection against loss or damage of property/ materials caused
by
fire. The insurance should be taken for a maximum amount of its current value
after
considering factors of wear and tear as well as depreciation.
Suitable for: This policy is vital for every individual or corporate body with respect
to the property where they have insurable interest. Since insurable interest signifies
the right to insure, the person or corporate body must be legally competent to enter
into a fire insurance contract.
PRIVATE CAR INSURANCE
Riskscovered
This insurance policy protects the motor vehicle from loss or damage
1. By fire, lightning, self-ignition, explosion, burglary, housebreaking or theft.
2. Riot or strike.
3. Flood, earthquake, cyclone or inundation.
4. Transit by road, air, elevators or lifts.
5. Liability for third party's injury or death, third party property and towards the
paid driver too.
6. Drunken driving.
HOUSEHOLDER’S POLICY
The Householder's Insurance Policy comprises of ten sections covering of the
insured's building, fixtures and fittings, contents, jewellery and valuables,
television sets and VCRs, bicycles, accompanied baggage as well as personal
accident and public liability benefits. Of these ten, the insured party must opt for at
least three sections and section 2 is compulsory.
If the insured party opts for cover for more than 4 sections excluding compulsory
sections, a discount of 15 percent is offered on the Non-Tariff sections. For more
than
6 sections, excluding Sections I and II, 20 percent discount is offered on Non-
Tariff sections.
5. STOCK DIRECT
Stock direct has changed the way you look at trading in securities.
A three way hands shake between leading brokers, national and international banks
and SHCIL is the crux of stock direct. Stock direct – India‟s first online trading
platform was launched in 1999.
Today stock direct is the most secure online trading platform which combines
encryption technology/digital signature features. A few clicks will seamlessly
check your funds and security positions, route the order to the broker of your
choice and do the necessary fund and share movements for you.
Advantages
One Stop Shop
Give a single instruction towards funds confirmation for buy orders, order routing
to your broker and fund and share movements for settlement purpose.
Convenience
Trade from home through the net or use the RTMs placed at specified SHCIL
centers.
Security
Digital Signature & Smart Card technology based on 128 bit Encryption make
your transactions 100% secure.
Cost-Effective
No minimum value of transaction.
Choice of Stock Exchanges
Buy/Sell shares on BSE / NSE
DERIVATIVE SERVICES:-
SHCIL provides Clearing Services for derivative segment of BSE/NSE and
Commodity segment of MCX/NCDEX.
STOCK DERIVATIVES-
SHCIL is a Custodian/Professional Clearing Member of derivative segment at the
Bombay Stock Exchange and at the Futures & Options Segment of the NSEIL
respectively.
COMMODITY DERIVATIVES:-
SHCIL is the first Professional Clearing Member of Commodity segment on the
Multi Commodity Exchange (MCX) and National Commodity & Derivative
Exchange (NCDEX).
SHCIL has a full fledged in-house back office systems and procedures to cater to
the needs of trading members and other institutional / corporate clients in this
segment. A dedicated team of professionals handles derivative operations and
assists its clients.
As a professional clearing member, SHCIL performs the following functions;
Clearing - Computing obligations of all his TM s i.e. determining positions
to settle.
Settlement - Performing actual settlement.
Collateral Management - Collection of collateral (cash and cash/cash
equivalents and setting up exposure limits for TMs and Institutional clients.
Risk Management - Setting position limits based on upfront
deposits/margins for each TM and monitoring positions on a continuous
basis.
Advantage:
SHCIL has always been a pioneer in clearing and settlement services in the cash.
SHCIL has the capability to handle large volumes of business with greatest
accuracy, keeping customer interests as the top priority.
SHCIL being a professional clearing member has no trading interests in the
Commodity segment. There is strictly no dissemination of information on trading
or any other operation of any of its clients.
Collateral Management
SHCIL has excellent system to manage cash and cash equivalents deposited as
collateral for derivatives trading.
Continuous Patronage from Institutional clients:
SHCIL being a custodian clearing member having major institutional clients,
provides more credibility. Tie-up with banks having nation-wide reach for banking
activities: Since settlement in derivatives trading takes place daily. Funds
movement has to be fast. SHCIL has tie up with new generation banks having wide
reach and modern
facilities like TT / anywhere banking etc. to contain the time lag in banking
transactions.
2. Purchase Nil
Settlement services:
Institutional trades are either settled through the Clearing House of the Stock
Exchanges or as DVP directly with the contracting broker or Counter Party. As a
Custodian SHCIL strives for timely settlement of Funds and Securities. Funds are
collected/ deposited from/to client and settled with the Clearing Houses/ Brokers/
Counter Parties.
In the present context, most of the Institutional trades are settled in the Depository
mode. For the Institutional segment alone, SHCIL has a unique clearing code on
the two principal stock exchanges and separate DPM units on both NSDL and
CDSL. This ensures smooth settlement of transactions on both
Exchanges/Depositories, based on the deliverables and receivables received by
them for each settlement. For the occasional delivery and receipt of securities in
the physical mode,
Institutional services:
SHCIL has installed dedicated DPM‟s (Depository Participant Modules) on both
the Depositories, viz. NSDL (National Securities Depository Ltd) and CDSL
(Central Depository Services Ltd). A dedicated Institutional DP team at SHCIL
addresses your need for all core DP services like conversion of physical holdings
into electronic form, settlement of trade instructions, rematerialisation, repurchase
and pledge instructions, providing of holding and transaction statements and daily
reconciliation of client holdings.
COMPETITORS:
Kotak Securities
Karvy Securities
Motilal Oswal
Anand Rathi
India Bull
1. Kotak Securities Limited, a subsidiary of Kotak Mahindra Bank, is the stock broking and
distribution arm of the Kotak Mahindra Group. One of the oldest broking houses in India, its
operations include stock broking and distribution of various financial products. It is a corporate
member of both the Bombay Stock Exchange and the National Stock Exchange of India. Kotak
Securities was founded in 1994 and is headquartered in Mumbai, India.
Anand Rathi is a leading full service securities firm providing the entire gamut of
financial services. The firm, founded in 1994 by Mr. Anand Rathi, today has a pan
India presence as well as an international presence through offices in Dubai and
Bangkok. AR provides a breadth of financial and advisory services including
wealth management, investment banking, corporate advisory, brokerage &
distribution of equities, commodities, mutual funds and insurance, structured
products - all of which are supported by powerful research teams. The firm's
philosophy is entirely client centric, with a clear focus on providing long term
value addition to clients, while maintaining the highest standards of excellence,
ethics and professionalism. The entire firm activities are divided across distinct
client groups: Individuals, Private Clients, Corporates and Institutions and was
recently ranked by Asia Money 2006 poll amongst South Asia's top 5 wealth
managers for the ultra-rich. In year 2007 Citigroup Venture Capital International
joined the group as a financial partner.
India bulls is an Indian company with its presence in the Real Estate,
Infrastructure, Financial Services, Securities, Retail, Multiplex and Power sectors.
The company was founded in May 2000 as an online stock brokerage and has since
then diversified into its current portfolio. India bulls Group is one of India's large
Business houses. The Group has several businesses which cover a wide spectrum
of Real Estate, Financial Services, Securities, Power and Chartered Aviation.
Many of the companies are public entities and are listed on Indian stock markets.
Karvy has presence with leadership position in a wide range of financial services
including Broking, Commodities, Registry Services, Merchant Banking, Realty
services etc. The group also has presence in the BPO services and technology
services space. A professionally managed and highly focused financial
intermediary in the Indian markets.
SWOT ANALYSIS
STOCK HOLDING CORPORATION OF INDIA LIMITED
STRENGTH
OPPORTUNITIES
1. E – Broking.
2. Acquisition of smaller DPs.
3. Collaboration with banks.
4. New products.
5. The company can take steps to increase the awareness among the
clients and thereby increase the business.
6. The company can attract more number of franchises.
THREATS
3. The number of competitors is increasing at a higher rate. Their charges are also
low when compared to the charges of SHCIL. The nearest competitors are banks
providing DP services along with their regular services.
4. The company does not charge any amount for closing the account. Since
retaining the customer is very important and most of the customers will not think
of closing the account at time of opening the account the company can charge
some for closure.
5. The discounts and offers given by other DP‟s when compared to offers of
SHCIL are leading to reduction in the number of clients.
STRENGTH
WEAKNESS
OPPORTUNITIES
1. Financial services like banking .
2. Market expansion i.e. opening branches at untapped areas.
3. India bulls is registered with Luxembourg stock exchange and so can
target other stock exchanges.
4. ATM facility should be provided for easy withdrawals.
5. The Capital market in the last few years has turned out to be one of
the favorable avenues for the retail investors
6. Scope of online trading on BSE.
7. India bulls has tied up with other third party companies to sell their
products. Due to the high client base of India bulls, there exists an
opportunity to cross sell these products in the market.
THREATS
1. Companies like Share khan, ICICI Direct, Kotak, and Private Brokers
are major threats to India bulls.
2. Banks with demat facility jockeying for position.
3. Local brokers capable of charging lower brokerage.
4. Industry competitors vying for the same target segment.
5. Changes in SEBI guidelines & other tax implications.
6. Government Regulations.
STRENGTH:
Breadth of Services
In line with its client-centric philosophy, the firm offers to its clients the entire
spectrum of financial services ranging from brokerage services in equities and
commodities, distribution of mutual funds, IPOs and insurance products, real
estate, investment banking, merger and acquisitions, corporate finance and
corporate advisory.
Clients deal with a relationship manager who leverages and brings together the
product specialists from across the firm to create an optimum solution to the client
needs.
Management Team
Anand Rathi brings together a highly professional core management team that
comprises of
individuals with extensive business as well as industry experience.
In-Depth Research
Our research expertise is at the core of the value proposition that we offer to our
clients. Research teams across the firm continuously track various markets and
products. The aim is however common - to go far deeper than others, to deliver
incisive insights and ideas and be accountable for results
WEAKNESS
The name of the organization ANAND RATHI indirectly indicates that it belongs
to an individual.
Small range of product line.
METHODOLOGY
Sample size 88
For the purpose of secondary data books, articles, reports, annual reports of the
stock exchanges, Internet are used.
Analysis:
Age-investment amount
Income-investment amount
Education-investment amount
Research Hypothesis
Formula:
X2 = ∑∑(fo-fe)^2/fe
α=5% (assume)
df= (r-1)(c-1)=2
X2 0.05,2= 5.9915
investment amount
age
20-40 20 5 25
40-50 15 6 21
50-above 60 33 8 41
68 19 87
I II III=(I-II)^2 IV=III/II
observed expected (O-E)^2
20 19.54023 0.211388559 0.010818
5 5.45977 0.211388559 0.038717
15 16.41379 1.998810939 0.121776
6 4.586207 1.998810939 0.435831
33 32.04598 0.910159863 0.028402
8 8.954023 0.910159863 0.101648
0.737193
X2 calculated= 0.737193
5.9915> 0.737193
Business Implication:
As the null hypothesis is accepted, it means that the investment amount invested by the investors is
independent of age.
Research methodology
X2 = ∑∑(fo-fe)^2/fe
α=5% (assume)
investment amount
income
below 1L 1L-1.5L
10000-20000 32 5 37
20001-30000 12 5 17
above 30000 24 9 33
68 19 87
I II III=(I-II)^2 IV=III/II
observed expected (O-E)^2
32 28.91954 9.4892324 0.328125
5 8.08046 9.4892324 1.174343
12 13.28736 1.6572863 0.124727
5 3.712644 1.6572863 0.44639
24 25.7931 3.21522 0.124654
9 7.206897 3.21522 0.446131
Calculated value 2.64437
X2 calculated= 2.64437
X2table value< X2 calculated
X2 calculated = 2.64437
5.9915> 2.64437
Business Implication:
As the null hypothesis is accepted which means that the amount invested on the preferred investment
is independent of their education.
Research hypothesis:
Formula:
X2 = ∑∑(fo-fe)^2/fe
α=5% (assume)
df= (r-1)(c-1)= 2
X20.05,1= 3.8415
investment amount
education below1L 1L-1.5L
GRAD 31 9 40
PG+UG+OTHER 37 10 47
68 19 87
e11 31.26437
e12 8.735632
e21 36.73563
e22 10.26437
III=(I-
I II II)^2 IV=III/II
observed expected (O-E)^2
31 31.26437 0.06989 0.002235
9 8.735632 0.06989 0.008001
37 36.73563 0.06989 0.001903
10 10.26437 0.06989 0.006809
calculated value 0.018948
X2 calculated= 0.018948
3.8415< 0.018948
As the null hypothesis is accepted which means that the amount invested on the preferred investment
is independent of their education.