Professional Documents
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BROKING FIRMS
PROJECT REPORT
ON
OF
SUBMITTED TO SUBMITTED BY
PROF: SAMARJEET SEN D.RAVI H2-23
GUPTA AJAY KUMAR H2-19
AMIT
NAWEEN KUMAR RAI
rd
(3 SEMESTER)
SPECIALIZATION –MARKETING + FINANCE
We are thankful to MR. Samarjeet sen gupta who has given this
opportunity for doing a project work on “comparative study of
demat services of different broking firms”. From this study we
have gathered knowledge of services which are provided by the
broking firms and also find out which of the firm is having good
service.
1) INTRODUCTION
2) DEMATERALIZATION
3) REMATERIALIZATION
4) DEPOSITIORY SERVICE
8) FINDINGS
9) CONCLUSION
10) BIBLIOGRAPHY
1) INTRODUCTION
Financial Markets
And Borrowing
CAPITAL MARKET:
The Capital Market is a market for financial investments that
are direct or indirect claims to capital (Gart, 1988).
SECURITIES MARKET:
It refers to the markets for those financial
instruments/claims/obligations that are commonly and readily
transferable by sale. It has two inter-dependent and inseparable
segments, the new issues (primary) market and the stock
(secondary) market.
SECONDARY MARKET:
The secondary market enables those who hold securities to
adjust their holdings in response to changes in their assessment
of risk and return.
PRIMARY MARKET:
The Primary Markets provides the channel of sale of new
securities.
2) DEMATERIALZATION
Demat account
Definition:
De-mat account is a safe and convenient means of holding
securities just like a bank account is for funds. Today, practically
99.9% settlement (of shares) takes place on De-mat mode only.
Thus, it is advisable to have a Beneficiary Owner (BO) account to
trade at the exchanges.
NOTE
Definition:
Dematerialization is the process of converting physical shares
(share certificates) into an electronic form. Shares once
converted into dematerialized form are held in a De-mat account.
Dematerialization Process:
Pledging of Securities
Margin Account
Anyone who wants to open a demat account in hdfc can visit the
website of HDFC and can apply for the same. When any one
register for demat account opening, the executive of HDFC will
contact him/her and will complete further formalities needed for
account opening.
Or
Not more than 10 loose slips instruction slips can be issued to one
account in a financial year (April to March). For issuance of loose
instruction slips, account holder shall come in person and sign the
loose slip in presence of an authorized bank official
Market Transactions
Settlement Type.
Settlement Number
Off-Market Transactions
DP ID.
DP Name.
Client ID
ISIN Number.
Scrip Name
Quantity in numbers
Quantity in words
Execution date.
Basically one can use the Speed E of NSDL and Easi of CDSL
wherein one also needs to punch in the instruction details. The
same will get processed electronically by the respective
Depositories.
Inter-Depository Transactions
Rematerialisation of securities
Verify the names on the RPF with the names on the account
Verify the signature on the RPF with the signature on the account.
You need to submit a Pledge Creation form duly filled with the
details of the security which you would like to pledge with the
counterpart (Pledgee) DP account details. The form should be
duly signed by ALL the account holders. Kindly mention the
Agreement number for reference purpose, which one should
obtain from the Pledgee before execution. Also ensure the
Execution date on which one would like to create the pledge.
Pledge Confirmation
Pledgee has to check their demat account and accept the pledge
through their DP. Upon acceptance, the securities will be marked
as "Pledge" in your demat account infavour of the Pledgee. Once
the Pledge is created, the same cannot be closed / revoked by the
Pledgor.
Pledge Closure
Invocation of Pledge
In case of Pledgee requires to take the securities into their books,
typically incase of default by the Pledgor, they can do so without
any further instruction from the Pledgor. Upon invoking the
securities will be transferred automatically into the account of
Pledgee
When one would like to defreeze the same, then he/she need to
provide another instruction as per format to do so.
One can make a fresh purchase of KVP & NSC through his/her
existing demat. I.e. no need to open a separate demat account
for the same
Check with the Post of Office whether they issue the credit in
demat mode, as only select post offices in Mumbai are issuing the
same.
Investors will be able to submit the forms either directly to post
offices or through agents, as at present.
NSC and KVP can be held by individuals. Further, Joint holders
only upto two are allowed.
NSDL as well as DPs will not charge any custody fee for holding
NSC/KVP.
Investors can pledge NSC/KVP, as per the rules of the DoP.
On redemption, the investor may not be required to go to the
issuing post office as the redemption amount may directly be
credited into the investor's bank account or a warrant can be
directly sent to the investor. For this purpose, it is necessary for
the investor to mention his bank account details in the application
form.
Investors can hold NSC/KVP in their existing demat account. This
would enable the investors to consolidate different types of
investments in a single demat account. Multiple investments in
these securities will also get reflected in a single account
statement.
Risk associated with holding physical certificate will be
eliminated.
On redemption, the investor need not go to the post office. The
investor's bank account will be credited directly or he will receive
a warrant at his residence.
As of now, dematerialisation of existing KVP / NSC certificates is
not available.
Statements
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Copy of latest demat account transaction statement needs to
be provided. Kindly ensure that the same is the latest one.
Copy of Identity Proof of ALL the holders needs to be submitted
and original needs to be shown to the bank official for
verification purpose.
Copy of the new valid address proof to be provided to us and
original needs to be shown to the bank official for verification
purpose.
Either one is needed to visit the branch OR one can authorize
their representative to do the needful.
In case one authorizes his/her representative to complete the
original needs to be shown to the bank official for verification
purpose.
Investor and their respective representative have to sign once
again in the presence of a DP official.
On receipt of a valid request, HDFC Bank will verify the photo on
the ID proofs submitted along with the request with the photo on
the original application form and effect the changes.
Also HDFC Bank will send intimation to this effect to investor’s old
and new address.
Change of Signature
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Ensure that the new signature is duly attested by the banker
with his signature, name, employee code and complete address
of the bank.
Kindly mention the reason for the change of signature.
Visit the branch personally to submit the request.
Sign once again in front of the bank official.
Submit a copy of valid ID Proof along with original for hdfc
verification purpose.
On receipt of a valid request, HDFC Bank will verify the photo on
the ID proofs submitted along with the request with the photo on
the original application form and effect the changes.
Transmission
Surviving Holders
DP on Net
If a 1st holder of a demat account maintains a Savings / Current
Account with HDFC Bank, he / she can opt for a "Netbanking"
facility. Through which the demat account status of the previous
day, i.e holding and last few transactions can be viewed. For
which the account holder has to register for "Netbanking" and
linking of demat account to his "CustID"
Demat Fees
INDIA INFOLINE
Services:
NRI demat
account
Corporate
account
HUF account
Partnership Firm
account
Proprietorship Firm
account
Types of account:
(based on securities & funds) Trading account
Depository account
-5paisa.com
-indiainfoline.com
-via franchise
Phone calls
ANGEL BROKING
Services:
Demat account offered for investor :
(based on group)
individual
account
joint account
NRI account
- ANGEL INVESTOR
-ANGEL DIET
-ANGEL ANYWHERE
depository account
Trading account
- ANGEL INVESTOR
-ANGEL DIET
-ANGEL ANYWHERE
Offline-relationship manager
Transaction detail through: sms
Phone calls
RELIGARE
individual
account
joint account
NRI account
R ACE basic
depository account
Trading account
HSBC SECURITIES
Services:
• Resident Individual
• Non Resident Indian (NRI) / Foreign National (FN)
• HUF
• Minor account
• Domestic Company
• Foreign Corporate Body
SMART POWER
Saving account
trading account
depositiry account
Pledge Charges:
Other services:
RESULTS:
NSD
L
Tran
sacti
ons
RESULTS:
8) Findings
9) Conclusion
Demat account is an easier way of holding
funds; it is a secure way of earning. There is no paper work
related with it which makes the transaction process easier and
convenient. There are various broking firms operating in the
market of which some of the leading firms are India infoline, hdfc
securities, hsbc securities, angel broking. These firms offer
various services like demat, mutual fund, insurance, commodity
trading etc. By comparison it has been found that these firms are
having different brokerage and different services for the
customers. The customers can choose the brokerage firm and
different service according to his needs and requirement.
10) Bibliography
2)url//http/:www.angelbroking.com
3)url//http/:www.hdfc.com
4)url//http/:www.traderji.com
5)url//http/:www.google.com
6)url//http/:www.nse.com
7)url//http/:www.bse.com