Sophia Girls College ,Ajmer

Presentationon

WithStock Holding Corporation Of India Limited

SUBMITTED TO : SIR RAMAN TIWARIHEAD OF DEPARTMENT

SUBMITTED BY:HEMLATA TEKWANIBBA PART III

Stock Holding Corporation of India Ltd. (SHCIL) was incorporated as a Public Limited Company in 1986. It has been jointly promoted and owned by leading Banks and Financial Institutions viz., IDBI Bank Ltd., ICICI Bank Ltd., SU-UTI, IFCI Ltd., LIC, GIC, NIA, NIC, UIC, and TOICL, all leaders in their fields of business.

SHCIL began by offering custodial and post trading services, adding depository services and other services to its portfolio over a period of time.

SHCIL has established itself in India as a one-stop solution provider in the Financial Services domain.

MISSION STATEMENT

“TO BE A WORLD CLASS TECHNOLOGY

DRIVEN AND CLIENT FOCUSED MARKET

LEADER IN FINANCIAL AND TECHNICAL

SERVICES”

ACCOUNT OPENING

ACCOUNT MAINTENANCE

DEMATERIALISATION

REMATERIALISATION

MARKET TRANSFERS

OFF-MARKET TRANFERS

PLEDGE/ HYPOTHECATION

TRANSMISSION

Conversion of physical securities into

electronic form

No distinctive number to securities

required as depositing & withdrawing

money from a bank without bothering

about distinctive no. of currency

bad deliveries due to signature difference

mistakes in completion of transfer deeds

tearing and mutilation of securities

fake certificates

fraudulent interception of certificate in transit

transfer stamp duty

extra consumption of time by the Companies

postal delays and charges etc

SHAREHOLDERSWith Physical

Certificates

DEPOSITORY

PARTICIPANTS

Shareholder Goes To DP with his Physical

Share Certificates

ACCOUNT

OPENING

Shareholder opens his Account with DP

DEMAT REQUEST FORM

Shareholder fills DRF in duplicate, defaces the sharesand hands

over to DP

R & T

AGENT

The DP sends Share Certificates to R & T

agent for dematerialisation

DEPOSITORYDp sends Information

electronically to Depository

DEMATERIALISATION

Upon confirmation of Demat by R & T Agent

the Depository Confirms

Dematerialisation

CREDIT TO THE BO ACCOUNT OF THE

INVESTOR

Share Certificates Dematerialised

PROCESS OF DEMATERIALISATION :

• DEMAT is a safe and convenient way to hold securities as it allows Immediatetransfer of securities. There is no stamp duty on transfer of securities.

• Elimination of risks associated with physical certificates such as bad delivery,fake securities, delays, thefts etc.

• There is a major reduction in paperwork involved in transfer of securities.

• Change in address recorded with DP gets registered with all companies inwhich investor holds securities electronically eliminating the need tocorrespond with each of them separately.

• Automatic credit into DEMAT account of shares, arising out ofbonus/split/consolidation/merger etc

• Holding investments in equity and debt instruments in a single account

• Benefit to the Company: The depository system helps in reducing the cost ofnew issues due to less printing and distribution cost. It increases the efficiencyof the registrars and transfer agents and the Secretarial Department of thecompany. It provides better facilities for communication and timely services withshareholders, investor etc.

• Benefits to Brokers: The depository system reduces risk of delayed settlement.It ensures greater profit due to increase in volume of trading. It eliminateschances of forgery. It increases overall of trading and profitability and alsoincreases confidence in investors.

Research Methodology is a way to systematically solve the research problem.

Research Methodology concerning a research problem or study provide answers to various questions like;

why a research study has been ,undertaken , how the research problem has been defined.

what data have been collected and what particular method has been adopted to collect the data.

what technique has been used for analyzing the data and a host of similar other questions

.

Type of research descriptive and exploratory

research

• sampling technique non- probability sampling

sample size 50

sample description SHCIL clients, ajmer public

instrumental technique interview, questionnaire

sources of data collection primary data was collected by

conducting interview.

secondary data was collected

from ,

books and internet.

Software use for data analysis Ms word and MS office

Method used for Analysis of DataThe methodology used for this purpose is Survey a Questionnaire Method. It is a time consuming and expensive method and requires more administrative planning and supervision. It is also subjective to interviewer bias or distortion

1) Are you aware of Stock Market?

Analysis:-

This graph shows that all the 50 individuals were aware of stock market. So it can also be possible that investors will rise in near future.

0 20 40 60 80 100 120

YES

NO

No. of Responding

No. of Responding

2) Are you aware of Demat Account?

Analysis :-The above table clearly shows that from a sample size of 50 respondents, 40 individuals were aware of demataccount

0 10 20 30 40 50

No

Yes

Awareness of Demat Account

Awareness of Demat Account

3) Duration for which investor has been transacted in Stock Market?

0 5 10 15 20

Less than 1 year

1 year

2 year

More than 2 year

Duration of investors trading through Shcil

amount of duration

Analysis:-The above table clearly shows that from a sample size of 50respondents, 12 have been trading in the stock exchange for more than 2 years. 10 investors were trading for 2 years and remaining 28 for one year or less than a year.

4) WHICH TYPE OF SCRIPTS YOU HAVE ?

0

5

10

15

20

25

30

35

40

PHYSICAL DEMATERIALISED

TYPE OF SCRIPTS

TYPE OF SCRIPTS

Analysis:-Above graph shows that many individuals have dematerialised scripts and some have physical scripts.

5) Do you convert your shares Electronically?

0

5

10

15

20

25

30

35

YES NO

Series 1

Analysis:-This chart shows that 30 individuals wanted to convert their shareselectronically and rest were not.

6)Are you satisfied with Demat Service Provider by SHCIL ?

0

5

10

15

20

25

30

35

40

45

YES NO

Series 1

Analysis:This graph shows that most of the people were satisfied with demat service provider

7) what respondents think how secure the securities are in demat a/c in SHCIL ?

a. excellent b. very good c. good d. average

0

5

10

15

20

25

30

EXCELLENT VERY GOOD GOOD AVERAGE

Graph showing the securities secure in demat account

Graph showing the degree ofsecurities in demat account

Analysis:24 of the respondents said there securities are excellently secure,8 said very good security , 6 said good security and 2 of the respondents said average security of there accounts.

1) Most of the people were aware of stock market.

2) 40% of individuals were aware of demat account out of 50%.

3) More investors have stared trading from one year or less than one year

4) More of the individuals are trade occasionally and than individuals tra.de frequently

5)Many individuals have dematerialised scripts and some have physical scripts.

6) More than half of the individuals wanted to convert their shares electronically and rest were not.

7) Most of the people were satisfied with demat service provider.

8) The survey indicates that the investors are more safe and secured from the demat in SHCIL

The respondents were asked to indicate their true responses to the questions being asked, but rather than giving the response, they might have been in a form of expert comments which might have based the result of the study.

The results of the study may not be universally applicable due to regional constraints.

Some of the persons did not responded questionnaire.

Personal biasness may be included in the research work

On the whole, my project at SHCIL was worthwhile as i got opportunity to learn a lot about the capital market and dematerialization. It was a wonderful experience interacting with employees of the organization and simultaneously enhancing my knowledge and skills about stock market operations. I got to know about the process of dematerialization, account opening and how the trades department settles the various transactions.

Working at SHCIL and preparing this project was a learning experiences and I shall make immense use of it in my career.

• Study material of capital market

Zikmund , William G; “Business Research Methodology”, Seventh Edition, Thompson South Western Publication

• Websites Visited

www.shcil.co.in

www.sebi.gov.in

www.nseindia.com

www.bseindia.com

www.businessweek.com