A CASE STUDY ON HDFC DEMATE ACCOUNT COMPARISION WITH ICICI DEMATE ACCOUNT MASTER OF BUSINESS ADMINSTRATION II SEM.

JAIPUR INSTITUTE OF MANEGEMENT STUDIES, JAIPUR SABMITTED TO : Dr. R K Sharma SABMITTED BY : Dipak K Prajapati

MARCH - 2010

PREFACE
As management attitude are becoming more rewarding it helps up to acquire. The students with modern management concept it helps us in developing entrepreneur and analytical skills as applied to business environment and that prepare us for pressuring a professional career. The main objectives of MBA level is to gain practical analysis which is vast different from the bookish knowledge, it helps to develop a practical knowledge in student, as a supplement to the theoretical study of management general. The case study at MBA level aims at given knowledge about particular area in the business. Case study gave me a practical view of how actually runs and have it is managed. This case study has enhanced my knowledge allow the company. Case study helps me to exposure and 10% of realities which is totally different than what it helped me to know the reality as what actual happens in company. The main aim of this case study is to develop the student about the industrial environment and business practical with the help of me get capable of facing the challenging world

Date Place Dipak Prajapat

ACKNOWLEDGEMENT
A case study is not only of our subject but is the golden opportunity for our knowledge enhancement with the great pleasure; here I take the opportunity to express my gratitude towards all who helped me at various stage of my practical part. At once, I would like to place on record my thanks to the management of our college for their kind co-operative in providing the required data. In a special way, I would like to place on record my practical case study Incharge Prof.D.N.Sharma, Principal Sir Mr. R.K.Sharma and Lokesh Arora Madam , who though out my visit and in preparing the case study and internet facilities. Lastly, I would like to thanks management and officers and staff of different department, who spend their precious of units and provided insight. I would like to acknowledge to valuable help offered to the person.

Introduction about demate account

The term Demat, in India, refers to a dematerialized account. For individual Indian citizens to trade in listed stocks or debentures the Securities Exchange Board of India (SEBI) requires the investor to maintain a Demat account. In a demat account shares and securities are held in electronic form instead of taking actual possession of certificates. A Demat Account is opened by the investor while registering with an investment broker (or sub broker). The Demat account number which is quoted for all transactions to enable electronic settlements of trades to take place. Access to the demat account requires an internet password and a transaction password as well as initiating and confirming transfers or purchases of securities. Purchases and sales of securities on the Demat account are automatically made once transactions are executed and completed. Just as you have to open an account with a bank if you want to save your money, make cheque payments etc, Nowadays, you need to open a demat account if you want to So it is just like a bank account where actual money is replaced by shares. You have to approach the DPs (remember, they are like bank branches), to open your demat account. Let's say your portfolio of shares looks like this: 150 of Infosys, 50 of Wipro, 200 of HLL and 100 of ACC. All these will show in your demat account. So you don't have to possess any physical certificates showing that you own these shares. They are all held electronically in your account. As you buy and sell the shares,

they are adjusted in your account. Just like a bank passbook or statement, the DP will provide you with periodic statements of holdings and transactions. Is a demat account a must? Nowadays, practically all trades have to be settled in dematerialized form. Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of upto 500 shares to be settled in physical form, nobody wants physical shares any more.

Advantages of Demat
1. The demat account reduces brokerage charges, makes pledging/hypothecation of shares easier, enables quick ownership of securities on settlement resulting in increased liquidity, avoids confusion in the ownership title of securities, and provides easy receipt of public issue allotments. 2. It also helps you avoid bad deliveries caused by signature mismatch, postal delays and loss of certificates in transit. 3. Further, it eliminates risks associated with forgery, counterfeiting and loss due to fire, theft or mutilation. 4. Demat account holders can also avoid stamp duty (as against 0.5 per cent payable on physical shares), avoid filling up of transfer deeds, and obtain quick receipt of such benefits as stock splits and bonuses. 5. Its a safe and convenient way to hold securities 6. Immediate transfer of securities is there 7. There is no stamp duty on transfer of securities 8. Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc 9. There is a major reduction in paperwork involved in transfer of securities, reduction in transaction cost etc 10.No odd lot problem, even one share can be sold thus there is an advantage

11.Change in address recorded with DP gets registered with all companies in which investor holds securities electronically eliminating the need to correspond with each of them separately; 12.Transmission of securities is done by DP eliminating correspondence with companies; 13.Automatic credit into demat account of shares, arising out of bonus/split/consolidation/merger etc.
14.

Holding investments in equity and debt instruments in a single

account. Benefit to the Company a. The depository system helps in reducing the cost of new issues due to less printing and distribution cost. b. It increases the efficiency of the registrars and transfer agents and the Secretarial Department of the company. c. It provides better facilities for communication and timely services with shareholders, investor etc. d. Benefit to the Investor The depository system reduces risks involved in holding physical certificated, e.g., loss, theft, mutilation, forgery, etc. e. It ensures transfer settlements and reduces delay in registration of shares. It ensures faster communication to investors. f. It helps avoid bad delivery problem due to signature differences, etc. g. It ensures faster payment on sale of shares. h. No stamp duty is paid on transfer of shares. It provides more acceptability and liquidity of securities.

i. Benefit to Brokers the depository system reduces risk of delayed settlement. j. It ensures greater profit due to increase in volume of trading. It eliminates chances of forgery bad delivery. k. It increases overall of trading and profitability. It increases confidence in investors. Disadvantages of Demat
1. The

disadvantages of dematerialization of securities can be

summarized as follows: 2. Trading in securities may become uncontrolled in case of dematerialized securities. 3. It is incumbent upon the capital market regulator to keep a close watch on the trading in dematerialized securities and see to it that trading does not act as a detriment to investors. 4. The role of key market players in case of dematerialized securities, such as stock-brokers, needs to be supervised as they have the capability of manipulating the market. 5. Multiple regulatory frameworks have to be confirmed to, including the Depositories Act, Regulations and the various By-Laws of various depositories. 6. Additionally, agreements are entered at various levels in the process of dematerialization. 7. These may cause anxiety to the investor desirous of simplicity in terms of transactions in dematerialized securities. 8. However, the advantages of dematerialization outweigh its disadvantages and the changes ushered in by SEBI and the Central

Government in terms of compulsory dematerialization of securities is important for developing the securities market to a degree of advancement.
9. Freely traded securities are an essential component of such an

advanced market and dematerialization addresses such issues and is a step towards the advancement of the marke

Indian Market Scenario Indian capital market has seen unprecedented boom in its activity in the last 15 years in terms of number of stock exchanges, listed companies, trade volumes, market intermediaries, investor population, etc. However, this surge in activity has brought with it numerous problems that threaten the very survival of the capital markets in the long run, most of which are due to the large volume of paper work involved and paper based trading, clearing and settlement. Until the late eighties, the common man kept away from capital market and thus the quantum of funds mobilized through the market was meager. A major problem, however, continued to plague the market. The Indian markets were drowned in shares in the form of paper and hence it was problematic to handle them. Fake and stolen shares, fake signatures and signature mismatch, duplication and mutilation of shares, transfer problems, etc. The investors were scared and were under compensated for the risk borne by them. The century old system of trading and settlement requires handling of huge volumes of paper work. This has made the investors, both retail and institutional, wary of entering the capital market. However, lack of modernization become a hindrance to growth and resulted in creation of cumbersome procedures and paper work. However, the real growth and change occurred from mid-eighties in the wake of liberalization initiatives of the Government. The reforms in the

financial sector were envisaged in the banking sector, capital market, securities market regulation, mutual funds, foreign investments and Government control. These institutions and stock exchanges experienced that the certificates are the main cause of investors` disputes and arbitration cases. Since the paper work was not matching the rapid growth so there was a need for a better system to ensure removal of these impediments. Government of India decided to set up a fully automated and high technology based model exchange that could offer screen-based trading and depositories as the ultimate answer to all such reforms and eliminate various bottlenecks in the capital market, particularly, the clearing and settlement system in stock exchanges. A depository in very simple terms is a pool of pre-verified shares held in electronic mode which offers settlement of transactions in an efficient and effective way

Demat conversion Converting physical holding into electronic holding (dematerialising securities) In order to dematerialise physical securities one has to fill in a DRF (Demat Request Form) which is available with the DP and submit the same along with physical certificates one wishes to dematerialise. Separate DRF has to be filled for each ISIN Number. The complete process of dematerialisation is outlined below:
1. Surrender certificates for dematerialization to your depository

participant. 2. Depository participant intimates Depository of the request through the system. Depository participant submits the certificates to the registrar of the Issuer Company. Registrar confirms the dematerialisation request from depository
3. After dematerializing the certificates, Registrar updates accounts and

informs depository of the completion of dematerialisation. 4. Depository updates its accounts and informs the depository participant. 5. Depository participant updates the demat account of the investor.

Demat Options Banks score over others Around 200 depository participants (DPs) offer the demat account facility. A comparison of the fees charged by different DPs is detailed below. But there are three distinct advantages of having a demat account with a bank quick processing, accessibility and online transaction. Generally, banks credit your demat account with shares in case of purchase, or credit your savings accounts with the proceeds of a sale on the third day. Banks are also advantageous because of the number of branches they have. Some banks give the option of opening a demat account in any branch, while others restrict themselves to a select set of branches. Some private banks also provide online access to the demat account. So, you can check on your holdings, transactions and status of requests through the net banking facility. A broker who acts as a DP may not be able to provide these services.

Fees Involved in demate account There are four major charges usually levied on a demat account: Account opening fee, annual maintenance fee, custodian fee and transaction fee. All the charges vary from DP to DP. Account-opening fee Depending on the DP, there may or may not be an opening account fee. Private banks, such as ICICI Bank, HDFC Bank and UTI Bank, do not have one. However, players such as Karvy Consultants and the State Bank of India do so. But most players levy this when you re-open a demat account, though the Stock Holding Corporation offers a lifetime account opening fee, which allows you to hold on to your demat account over a long period. This fee is refundable. Annual maintenance fee This is also known as folio maintenance charges, and is generally levied in advance. Custodian fee This fee is charged monthly and depends on the number of securities (international securities identification numbers ISIN) held in the account. It generally ranges between Rs 0.5 to Rs 1 per ISIN per month. DPs will not

charge custody fee for ISIN on which the companies have paid one-time custody charges to the depository. Transaction fee The transaction fee is charged for crediting/debiting securities to and from the account on a monthly basis. While some DPs, such as SBI, charge a flat fee per transaction, HDFC Bank and ICICI Bank peg the fee to the transaction value, subject to a minimum amount. The fee also differs based on the kind of transaction (buying or selling). Some DPs charge only for debiting the securities while others charge for both. The DPs also charge if your instruction to buy/sell fails or is rejected. In addition, service tax is also charged by the DPs. In addition to the other fees, the DP also charges a fee for converting the shares from the physical to the electronic form or vice-versa. This fee varies for both demat and remat requests. For demat, some DPs charge a flat fee per request in addition to the variable fee per certificate, while others charge only the variable fee. For instance, Stock Holding Corporation charges Rs 25 as the request fee and Rs 3 per certificate as the variable fee. However, SBI charges only the variable fee, which is Rs 3 per certificate. Remat requests also have charges akin to that of demat. However, variable charges for remat are generally higher than demat. Some of the additional features (usually offered by banks) are as follows.Some DPs offer a frequent trader account, where they charge frequent traders at lower rates than the standard charges.Demat account holders are generally required to pay the DP an advance fee for each

account which will be adjusted against the various service charges. The account holder needs to raise the balance when it falls below a certain amount prescribed by the DP. However, if you also hold a savings account with the DP you can provide a debit authorisation to the DP for paying this charge.Finally, once you choose your DP, it will be prudent to keep all your accounts with that DP, so that tracking your capital gains liability is easier. This is because, for calculating capital gains tax, the period of holding will be determined by the DP and different DPs follow different methods. For instance, ICICI Bank uses the first in first out (FIFO) method to compute the period of holding. The proof of the cost of acquisition will be the contract note. The computation of capital gains is done account-wise.

Opening an account Steps involved in opening a demat account First an investor has to approach a DP and fill up an account opening form. The account opening form must be supported by copies of any one of the approved documents to serve as proof of identity (POI) and proof of address (POA) as specified by SEBI. Besides, production of PAN card in original at the time of opening of account has been made mandatory effective from April 1, 2006. All applicants should carry original documents for verification by an authorized official of the depository participant, under his signature. Further, the investor has to sign an agreement with DP in a depository prescribed standard format, which details rights and duties of investor and DP. DP should provide the investor with a copy of the agreement and schedule of charges for their future reference. The DP will open the account in the system and give an account number, which is also called BO ID (Beneficiary Owner Identification number). The DP may revise the charges by giving 30 days notice in advance. SEBI has rationalised the cost structure for dematerialisation by removing account opening charges, transaction charges for credit of

securities, and custody charges vide circular dated January 28, 2005. Further, SEBI has vide circular dated November 9, 2005 advised that with effect from January 9, 2006, no charges shall be levied by a depository on DP and consequently, by a DP on a Beneficiary Owner (BO) when a BO transfers all the securities lying in his account to another branch of the same DP or to another DP of the same depository or another depository, provided the BO Account/s at transferee DP and at transferor DP are one and the same, i.e. identical in all respects. In case the BO Account at transferor DP is a joint account, the BO Account at transferee DP should also be a joint account in the same sequence of ownership.

Transfer of Shares between DPs To transfer shares, we need to fill the Depository Instruction Slip Book (DIS). Firstly we need to check, whether both Demat account's Depository Participant is same or not(CDSL or NSDL) If both of them are different, then we need an INTER Depository Slip (Inter DIS). If they are same, then we need INTRA Depository Slip (Intra DIS). For example: If we have one Demat account with CDSL and other Demat account with NSDL, then we need an Inter DIS. Generally, brokers issue Intra DIS, so do check with broker. Once we identify the correct DIS, fill the relevant information

WHAT IS NSDL?

NSDL(NATIONAL STOCK DEPOSITORY LIMITED) Although India had a vibrant capital market which is more than a century old, the paperbased settlement of trades caused substantial problems like bad delivery and delayed transfer of title till recently. The enactment of Depositories Act in August 1996 paved the way for establishment of NSDL, the first depository in India. This depository promoted by institutions of national stature responsible for economic development of the country has since established a national infrastructure of international standards that handles most of the securities held and settled in dematerialized form in the Indian capital market. Using innovative and flexible technology systems, NSDL works to support the investors and brokers in the capital market of the country. NSDL aims at ensuring the safety and soundness of Indian marketplaces by developing settlement solutions that increase efficiency, minimize risk and reduce costs. At NSDL, we play a quiet but central role in developing products and services that will continue to nurture the growing needs of the financial services industry.

In the depository system, securities are held in depository accounts, which is more or less similar to holding funds in bank accounts. Transfer of ownership of securities is done through simple account transfers. This method does away with all the risks and hassles normally associated with paperwork. Consequently, the cost of transacting in a depository environment is considerably lower as compared to transacting in certificates.

Benefits of Depository System

1.

Elimination of bad deliveries In the depository environment, once holdings of an investor are dematerialized, the question of bad delivery does not arise i.e. they cannot be held "under objection". In the physical environment, buyer was required to take the risk of transfer and face uncertainty of the quality of assets purchased. In a depository environment good money certainly begets good quality of assets. Elimination of all risks associated with physical certificates- Dealing in physical securities have associated security risks of theft of stocks, mutilation of certificates, loss of certificates during movements through and from the registrars, thus exposing the investor to the cost of obtaining duplicate certificates etc. This problem does not arise in the depository environment. No stamp duty for transfer of any kind of securities in the depository. This waiver extends to equity shares, debt instruments and units of mutual funds. Immediate transfer and registration of securities - In the depository environment, once the securities are credited to the investors account on pay out, he becomes the legal owner of the securities. There is no further need to send it to the company's registrar for registration. Having purchased securities in the physical environment, the investor has to send it to the company's registrar so that the change of ownership can be registered. This process usually takes around three to four

2.

3.

4.

months and is rarely completed within the statutory framework of two months thus exposing the investor to opportunity cost of delay in transfer and to risk of loss in transit. To overcome this, the normally accepted practice is to hold the securities in street names i.e. not to register the change of ownership. However, if the investors miss a book closure the securities are not good for delivery and the investor would also stand to loose his corporate entitlements.
5.

Faster settlement cycle - The settlement cycle follow rolling settlement on T+2 basis i.e. the settlement of trades will be on the 2nd working day from the trade day. This will enable faster turnover of stock and more liquidity with the investor. Faster disbursement of non cash corporate benefits like rights, bonus, etc. - NSDL provides for direct credit of non cash corporate entitlements to an investors account, thereby ensuring faster disbursement and avoiding risk of loss of certificates in transit. Reduction in brokerage by many brokers for trading in dematerialized securities Brokers provide this benefit to investors as dealing in dematerialized securities reduces their back office cost of handling paper and also eliminates the risk of being the introducing broker. Reduction in handling of huge volumes of paper periodic status reports to investors on their holdings and transactions, leading to better controls. of problems related to change of address of investor -

6.

7.

8. 9.

10. Elimination

In case of change of address, investors are saved from undergoing the entire change procedure with each company or registrar. Investors have to only inform their DP with all relevant documents and the required

changes are effected in the database of all the companies, where the investor is a registered holder of securities.
11. Elimination

of problems related to transmission of demat shares -

In case of dematerialized holdings, the process of transmission is more convenient as the transmission formalities for all securities held in a demat account can be completed by submitting documents to the DP whereas, in case of physical securities the surviving joint holder(s)/legal heirs/nominee has to correspond independently with each company in which shares are held.
12. Elimination

of problems related to selling securities on behalf of a

minor - A natural guardian is not required to take court approval for selling demat securities on behalf of a minor.
13. Ease

in portfolio monitoring since statement of account gives a

consolidated position of investments in all instruments.

SAFETY 1. A DP can be operational only after registration by SEBI, which is based on the recommendation from NSDL and their own independent evaluation. SEBI has prescribed criteria for becoming a DP in the regulations.
2. DPs are allowed to affect any debit and credit to an account only on

the basis of valid instruction from the client. 3. Every day, there is a system driven mandatory reconciliation between DP and NSDL. 4. All transactions are recorded at NSDL Central System and in the databases maintained by business partners.
5. 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 is affected. 6. All investors have a right to receive their statement of accounts periodically from the DP. 7. Every month NSDL forwards statement of account to a random sample of investors as a counter check. 8. In the depository, the depository holds the investor accounts 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 transfer their holdings to an account held with another DP. 9. The data interchange between NSDL and its business partners is protected by protection measures of international standards such as

encryption hardware lock. The protection measures adopted by NSDL are more than what is prescribed in the SEBI Regulations.
10.

Freeze Facility: A depository account holder (beneficiary

account) may freeze securities lying in the account for as long as the account holder wants it. By freezing the account, account holder can prevent unexpected debits or credits or both, creeping into its account. The following types of freeze facility available in the NSDL system may be availed of by submitting freeze instruction to the DP in the prescribed form. a. Freeze for debits only b. Freeze for debits as well as credits c. Freeze a particular ISIN in the account d. Freeze a specific number of securities held under an ISIN in an account
11.

Certification

in

Depository

Operations:

NSDL

has

introduced a Certification Programmed in Depository Operations (popularly known as NCFM certification), and it has been made compulsory for all DPs to appoint a person qualified in this certification in each of its branches. This way, NSDL wants to ensure that each branch of a DP that services investors has at least one person who has thorough knowledge about depository system.
12.

Investor grievance: All grievances of the investors are to be

resolved by the concerned business partner. If they fail to do so, the investor has the right to approach NSDL at the following the investor relationship cell of NSDL would work towards resolution of the grievance.

13.

Insurance Cover: NSDL has taken a comprehensive insurance

policy to help DP to indemnifying investors for the loss accrued to them due to errors, omissions, commission or negligence of DP.
14.

Computer and communication infrastructure: NSDL and its

business partners use hardware, software and communication systems, which conform to industry standards. Further, the systems are accepted by NSDL only after a rigorous testing procedure. NSDL's central system comprises an IBM mainframe system with a back-up facility and a remote disaster back-up site.
15.

Machine level back-up: The IBM mainframe in which the data

is processed has adequate redundancy built into its configuration. There is a standby central processing unit (CPU) to which processing can be switched over to in case of main system CPU failure. The disk has RAID implementation, which ensures that a failure of hard disk will not lead to loss in data. System has spare disk configuration where data is automatically copied from the main disk upon encountering the first failure (due to RAID implementation - first failure does not result in loss of data). All network components like router, communication controllers etc., have on-line redundancy and thus a failure does not result in loss of transaction. Disaster back up site: A disaster back up site equipped with a computer identical to the mainframe computer & computing resources has been set up at a distant location about 175 km away from Mumbai. The depository operations are often switched between the

computing resources at Mumbai office and disaster back up site to ensure that the disaster site is always-operational.

16.

Back-up in case of power failure: Continuity in power supply i. Dual uninterrupted power supply (UPS) for IBMMainframe and related components wherein the two UPSs are connected in tandem. In case of failure of primary UPS, the secondary UPS takes over instantaneously and thus, there is no interruption in operation, and ii. Back-up diesel generator sets.

to the main systems is assured by providing for;

Settlement fee:

i.

A settlement fee at the rate of Rs. 5 per debit instruction in a Client's account shall be charged to the Participant of the Client.

ii.

A settlement fee at the rate of Re.1.00 per instruction in respect of securities received from the Clearing Corporation into the Pool account of each Clearing Member maintained with the Participant subject to a minimum of Rs. 1,000 and a maximum of Rs. 5,000 per quarter per CM Account shall be charged to the Participant.

iii.

A settlement fee at the rate of Rs.5 per debit instruction for transfer of securities by way of inter-settlement transfers in the CM Account(s) shall be charged to the Participant.

iv.

A settlement fee at the rate of Rs.5 per debit instruction for transfer of securities from the CM account of a Clearing Member to the CM account of another Clearing Member shall be charged to the Participant of the delivering Clearing Member.

Provided further that no settlement fee shall be charged : a. in respect of commercial papers and short term debt instruments such as certificate of deposits, MIBOR linked papers etc.; and b. in case of : i. transfers necessitated by transmission on death of the Client; and ii. transfer of the accounts of Clients from one Participant to another as a consequence of expulsion or suspension of such Participant.

Pledge fee A fee at the rate of Rs.25 per instruction for creation of pledge / hypothecation shall be charged to the Participant of the pledge/ hypothecator. No fee shall be charged when a pledge / hypothecation is closed or invoked. CUSTODY FEES Nil FEE FOR DEMATERIALISATION & REMATERIALISATION No fee shall be charged by the depository for dematerialization of securities. Participant shall be charged the following fee for dematerialization of securities: a. a fee of Rs.10 for every hundred securities or part thereof ; or b. a flat fee of Rs.10 per certificate, Whichever is higher. No rematerialisation fee shall be charged for Government Securities. MINIMUM FEE

In case the total fee billed to the Participants in a financial year is less than the minimum fee of Rs.1,00,000 then the Participant shall be charged the difference thereof. SECURITY DEPOSIT Every Participant shall pay to the Depository Rs.10 lakh by way of interest free refundable security deposit. However, a Clearing Corporation or a Clearing House of a Stock Exchange will be exempt from payment of security deposit. FEE PAYABLE BY ISSUERS ANNUAL CUSTODY FEE Nominal Value of Securities Amount (Rs.)

admitted (Rs) Up to 5 crore Above 5 crore and up to 10 crore Above 10 crore and up to 20 crore Above 20 crore 6,000 15,000 30,000 50,000

i.

With effect from April 1, 2009, an Issuer of listed securities shall pay an annual custody fee at the rate of Rs. 8 per folio (ISIN position) in NSDL, subject to a minimum amount as mentioned below, plus taxes as applicable:

ii.

The above fee would be applicable on all securities i.e. equity, debt, Units of mutual funds, pass through certificates, certificates of deposit, commercial papers, preference shares etc., except Government securities.

iii.

The fee will be based on the total ISIN positions (folios) as on March 31, of the previous financial year. Provided however that, in case the issued capital or ISIN positions increase during the financial year due to issue of further shares, by way of public offer, the annual custody fee would be charged on a pro-rata basis, at the time of such issue.

iv.

The fee will be charged every year on a financial year basis and shall be payable by April 30 of that financial year. If an Issuer fails to pay the fees mentioned under "Annual Custody Fee" by the due date, the Depository may charge interest @ 12% p.a. on the amount, from the due date of payment till the payment is received by the Depository. Provided further that the Depository may stop providing details of clients / clearing members / clearing corporation / intermediary to the Issuer and / or its Registrar and Transfer Agent as mentioned in the Bye Laws and Business Rules. Provided further that the Depository may not permit the Issuer to use its infrastructure including for issue of further securities in electronic form.

FEE FOR DISTRIBUTION OF NON-CASH CORPORATE BENEFITS

i.

In case of offers for sale by an offered or disinvestment by GOI, bonus, rights, public issue, preferential issue, split, merger, demerger, capital reduction, redemption, etc., a fee at the rate of Rs. 10 per record for debits or credits to accounts as the case may be, shall be charged to the Issuer, subject to a minimum fee of Rs.1000 per corporate action.

ii.

In case of issue of Commercial Papers, a fee of Rs.10,000/- (plus taxes) shall be levied on the Issuer for five issues of Commercial Papers during the financial year. Provided however that an additional fee of Rs. 10,000/- (plus taxes) shall be levied on the Issuer for every additional five issues.

iii.

In case of issue of short term debt instruments viz; certificate of deposits, MIBOR linked papers etc., a fee of Rs. 10,000/- (plus taxes) shall be levied on the Issuer for five such issues made in a financial year. Provided however an additional fee of Rs.10,000/- (plus taxes) shall be levied on the Issuer for every additional five issues.

ONE TIME CUSTODY FEES An Issuer may pay a one time custody fee to NSDL at the rate of 0.05% plus taxes as applicable on the market capitalization of the company. The market capitalization of a company will be determined on the basis of the average

market price for a period of 26 weeks preceding the date on which the company agrees to make such payment. Consequent upon such payment, NSDL shall not levy any custody fee on the Participants or annual custody fee on the Issuer. If a company opts to pay the aforesaid one time fee, it will also be required to agree to pay on the newly issued shares, a custody fee at the rate of 0.05% (five basis points) on the value of shares calculated on the basis of issue price of newly issued shares. In case the company does not pay this amount, NSDL shall charge annual custody fee or custody fee as per provision mentioned hereunder, as the case may be. However, the Issuer shall not be required to pay any one time custody fee on any subsequent issue of Bonus shares by the company. JOINING FEE BY ISSUERS An Issuer of unlisted securities shall pay a joining fee of Rs. 20,000 plus taxes at the applicable rate at the time of joining NSDL, for the purpose of making its shares available for dematerialization. Provided however that in case the Issuer gets its securities listed on any recognized stock exchange within one year of joining NSDL, the joining fee paid by the Issuer will get adjusted against the one time custody fee or Annual Custody Fee, as the case may be. If an issuer gets its securities delisted from all stock exchanges where its securities were listed, it shall pay joining fee of Rs. 20,000 plus taxes at the

applicable rate. If an Issuer fails to pay the fees, the Depository may stop providing details of clients/ clearing members/ clearing corporation/ intermediary to the Issuer and / or its Registrar and Transfer Agent as mentioned in the Bye Laws and Business Rules. Provided further that the Depository may not permit the Issuer to use its infrastructure including for issue of further securities in electronic form.

WHAT IS CSDL? CSDL(CENTRAL DEPOSITORY SERVICE (INDIA) LTD.) was set up with the objective of providing convenient, dependable and secure

depository services at affordable cost to all market participants. Some of the important milestones of CDSL system are:

CDSL received the certificate of commencement of business from SEBI Honorable Union Finance Minister, Shri Yashwant Sinha flagged off Settlement of trades in the demat mode through BOI Shareholding All leading stock exchanges like the National Stock Exchange, Calcutta Exchange, Ahmedabad, etc have established connectivity with CDSL. As at the end of Dec 2007, over 5000 issuers have admitted their

in February, 1999. the operations of CDSL on July 15, 1999. Limited, the clearinghouse of BSE Stock Exchange, Delhi Stock Exchange, The Stock

securities (equities, bonds, debentures, commercial papers)units of mutual funds, certificate of deposits etc. into the CDSL system.

CDSL was promoted by Bombay Stock Exchange Limited (BSE) in association with Bank of India, Bank of Baroda, State Bank of India and HDFC Bank. BSE has been involved with this venture right from

the inception and has contributed overwhelmingly to the fruition of the project. The initial capital of the Company is Rs.104.50 crores. The list of shareholders with effect from 5th April, 2010 is as under. Sr.No Name of shareholder Value holding of % terms to total

(in equiy

Rupees Laces) 1 2 3 4 5 6 7 8 9 10 11 Bombay Stock Exchange 4,025.46 1 1,000.00 7 Bank of Baroda State Bank of India HDFC Bank limited Standard Chartered Bank Canara Bank Union Bank of India Bank of Maharashtra The Calcutta Stock Exchange Association Limited Other Total 0 0.08 10,450.0 100.00 1,000.00 7 1,000.00 7 1,500.00 6 750.00 8 674.46 200.00 200.00 100.00 6.45 1.91 1.91 0.96 7.1 14.3 9.5 9.5 9.5 38.5

Limited Bank of India

BOARD OF DIRECTOR Mr. S.S. Thahur Mr.V.V. Raut Mr. P.S.Reddy Chairman Managing Director and Chief Exe. Officer Executive Director

Mr. M.R.Mayya Mr. Madhu Kannan Mr. Prakash R. Kacholia Mr. Ashishk Chauhan Mr. Anjan Barua Mr. A.D.M. Chavali Mr. A.R.Kuppuswamy

Independent Director Sponsor DirectorBombay Stock Exchange Ltd. Sponsor Director-Bombay Stock Exchange Ltd. Sponsor Director-Bombay Stock Exchange Ltd. Sponsor Director State Bank of India. Sponsor Director Bank of Baroda Sponsor Director Bank of India

SECURITIES AVAILABLE FOR DEMATE Securities available for demat Equity securities, certificates of deposits, commercial paper, pass 5,715 Debt instruments including debentures, bonds, Government 4582

through certificates and Others Mutual fund units Depository Participants Number of Depository Participants Number of branches with LIVE Connectivity Number of cities/ towns with LIVE connectivity Number of locations with LIVE connectivity Demat Custody Number of securities in million Value (Rs. in million) Demat Settlement (April 2010) Number of securities in million Value (Rs. in million) Investor accounts(Excluding closed accounts) 699 60,174 78,470 84,40,100 500 265 120 278 1900

Corporate / Companies which issue any kind of security are known as 'Issuer' in the depository system. Only those securities, which are admitted into the CDSL system are available for dematerialization to the holders of such securities or can be allotted in electronic record form by the issuer. Securities include shares, debentures, bonds, commercial paper (C.P.), and certificate of deposits (C.D.), pass

through certificates (PTCs), government securities and mutual fund units. Both listed and unlisted securities can be admitted into the CDSL system. CDSL functions as the central accounting and record keeping office in respect of the securities admitted by issuer companies. It is mandatory for all listed companies to have their securities admitted for dematerialization with both the depositories viz CDSL & NSDL. It is however desirable that all securities are admitted on both the depositories so that investors having account with any of the depositories can acquire that security. Before the admission of any security into the CDSL system, it is necessary for the issuer to establish an electronic connectivity with CDSL either directly or through a registrar and transfer agent (RTA), who has already established connectivity with CDSL. All leading RTAs have already established electronic connectivity with CDSL. The procedure and CDSL charges to obtain direct connectivity by an issuer are similar to that as for a RTA. It may please be noted that SEBI, vide its circular dated 27-12-2002, has advised issuers that "all the work related to share registry in terms of both physical and electronic should be maintained at a single point i.e either in-house by the company or by a SEBI registered R & T Agent". At CDSL, data is centrally stored with state-of-the-art systems and having a 'Disaster Recovery Site' facility as back up. The centralized database architecture of CDSL places it in a unique position to provide issuers up-to-the-moment details of holdings of the security.

HDFC BANK Housing Development Finance Corporation Limited, more popularly known as HDFC Bank Ltd, was established in the year 1994, as a part of the

liberalization of the Indian Banking Industry by Reserve Bank of India (RBI). It was one of the first banks to receive an 'in principle' approval from RBI, for setting up a bank in the private sector. The bank was incorporated with the name 'HDFC Bank Limited', with its registered office in Mumbai. The following year, it started its operations as a Scheduled Commercial Bank. Today, the bank boasts of as many as 1412 branches and over 3275 ATMs across India.

HDFC Bank Ltd. is a commercial bank of India, incorporated in August 1994, after the Reserve Bank of India allowed establishing private sector banks. The Bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India. HDFC Bank has 1,412 branches and over 3,295 ATMs, in 528 cities in India, and all branches of the bank are linked on an online real-time basis. As of September 30, 2008 the bank had total assets of INR 1006.82 billion. For the fiscal year 2008-09, the bank has reported net profit of Rs.2,244.9 crore, up 41% from the previous fiscal. Total annual earnings of the bank increased by 58% reaching at Rs.19,622.8 crore in 2008-09 History HDFC Bank was incorporated in the year of 1994 by Housing Development Finance Corporation Limited (HDFC), India's premier housing finance company. It was among the first companies to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. The Bank commenced its operations as a Scheduled

Commercial Bank in January 1995 with the help of RBI's liberalization policies. In a milestone transaction in the Indian banking industry, Times Bank Limited (promoted by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., in 2000. This was the first merger of two private banks in India. As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than 1,000. The amalgamated bank emerged with a strong deposit base of around Rs. 1,22,000 crore and net advances of around Rs. 89,000 crore. The balance sheet size of the combined entity is over Rs. 1,63,000 crore. The amalgamation added significant value to HDFC Bank in terms of increased branch network, geographic reach, and customer base, and a bigger pool of skilled manpower. Business Focus HDFC Bank deals with three key business segments - Wholesale Banking Services, Retail Banking Services, Treasury. It has entered the banking consortia of over 50 corporate for providing working capital finance, trade services, corporate finance and merchant banking. It is also providing sophisticated product structures in areas of foreign exchange and derivatives, money markets and debt trading and equity research.

Wholesale Banking Services The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian corp. to small & mid-sized corporate and agricbased businesses. For these customers, the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of structured solutions, which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. HDFC Bank has made significant inroads into the banking consortia of a number of leading Indian corporate including multinationals, companies from the domestic business houses and prime public sector companies. It is recognized as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks. Retail Banking Services The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class service and delivered to customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking.

HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank launched its credit card business in late 2001. By March 2009, the bank had a total card base (debit and credit cards) of over 13 million. The Bank is also one of the leading players in the merchant acquiring business with over 70,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank is well positioned as a leader in various net based B2C opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc. Treasury Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. These services are provided through the bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio.

Distribution Network

An HDFC Bank Branch HDFC Bank is headquartered in Mumbai. The Bank has an network of 1,725 branches spread in 771 cities across India. All branches are linked on an online real-time basis. Customers in over 500 locations are also

serviced through Telephone Banking. The Bank has a presence in all major industrial and commercial centers across the country. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centers where the NSE/BSE have a strong and active member base. The Bank also has 3,898 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

Capital Structure At present, HDFC Bank boasts of an authorized capital of Rs 550 crore (Rs5.5 billion), of this the paid-up amount is Rs 424.6 crore (Rs.4.2 billion). In terms of equity share, the HDFC Group holds 19.4%. Foreign Institutional Investors (FIIs) have around 28% of the equity and about 17.6% is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). The bank has about 570,000 shareholders. Its shares find a listing on the Stock Exchange, Mumbai and National Stock Exchange, while its American Depository Shares are listed on the New York Stock Exchange (NYSE), under the symbol 'HDB'. HSBC Demat Accounts are especially designed to give you the edge in the stock markets today

You can purchase, hold and sell shares in electronic form

Get your Holding statement every 3 months, showing current portfolio of shares Avail of an Overdraft up to Rs.20 lakhs available against Demat shares through Asset Link# As an NRI, you can easily dematerialize your portfolio of shares in India with us* If you already hold an HSBC Current/Savings account, there be no account opening charges and no minimum balance requirements for your Demat Account You can save on transaction costs with quick transfers Say goodbye to risk of loss, theft or mutilation of shares Now, stop worrying about bad deliveries, forgeries and duplicate share certificates

Products & Services

Personal Banking

Savings Accounts Salary Accounts Current Accounts Fixed Deposits Demat Account Safe Deposit Lockers Loans

Credit Cards Debit Cards Prepaid Cards Investments & Insurance Forex Services Payment Services Net Banking InstaAlerts Mobile Banking InstaQuery ATM Phone Banking

NRI Banking

Rupee Savings Accounts Rupee Current Accounts Rupee Fixed Deposits Foreign Currency Deposits Accounts for Returning Indians Quick remit (North America, UK, Europe, Southeast Asia) India Link (Middle East, Africa) Cheque Lockbox Telegraphic / Wire Transfer Funds Transfer through Cheques / DDs / TCs Mutual Funds Private Banking Portfolio Investment Schemes

Loans Payment Services Net Banking InstaAlerts Mobile Banking InstaQuery ATM Phone Banking

FEE AND CHARGES HDFC 1 2 3 Account Opening Account Maintenance Dematerializations NIL Rs. 500/- per anum Rs. 3 per certificate, plus Rs. 35/- per request At actual, as levied by the 4 5 Rematerialisation SELL Depository Currently Rs. -10/- per certificate 0.04 % of the value of the ** Minimum Minimum -Rs. 500/Rs. 38.00

transaction 6 7 8 BUY Pledge Services * Asset Holding NIL 0.04% of the value of the shares NIL 0.04 % of the value of the 9 Debt Transactions Sell

Rs.20.00 -Rs. 25.00 -500.00

transaction. Minimum Rs Rs. 5000/- per Txn

500/- and Maximum Rs per txn. NIL --

10 Debt Transactions Buy

Mailing Charges for non Rs. 25/- per request for 11 periodic statements and other inland address Rs. 500/- per communication request for foreign address

HOW TO OPEN A DEMATE ACCOUNT ?

There are two options available to open a demat account with our bank:
1.

Customers could have/can open a savings/current account with HDFC Bank. OR Customers could pay an advance fee of Rs.2500/- for each demat account which will be adjusted against service charges.

2.

Requirements:1. Account opening form duly completed in all respects.

2. Photographs of all the authorized signatories duly signed across

to be affixed on the reverse of the specimen signature card. 3. Copy of Memorandum and Articles of Association duly attested by the Company Secretary / Director of the company.
4. Board Resolution along with the name of the authorized

signatories & their specimen signature on the company's letterhead stating that the company desires to open a demat account with HDFC bank and that the authorized signatories will be operating the said account as per the mode of operation given

in the board resolution. 5. DP Agreement to be executed on a stamp paper (value of stamp paper as per the place of execution of agreement)
6. Tariff Sheet duly signed by all the authorized signatories. 7. Debit Authorization signed by the bank account holders as per

the mode of operation in the board resolution for the bank account. 8. Proof of address of the corporate: Document registered with ROC/ acknowledged copy of Income Tax return/ Bank statement/ Leave & License agreement/ Agreement for purchase of office premises. 9. Introduction by existing account holder or by applicant's bank.

The Requirements for opening a trust account are:

1. 2.

Attested copy of the trust resolution. Attested copy of the registration certificate (Public Trust Account) if the trust is registered under the Society Registration Act of 1850, Indian Public Trust Act of 1950 or Indian Trust act. Photographs of the trustees signed across. Income Tax Exemption Certificate (optional). However, in case of a company retirement trust (i.e. Provident Fund Trust, Pension Fund, Gratuity fund, Super-annotations fund) the demat account will be opened in the name of the trust. PAN copy of the Trust. PAN coy of the Trustees, incase of an unregistered trust.

3. 4.

5.

6.

HDFC SECURITIES HDFC Securities (HDFCsec) is Equity Trading Company of HDFC Bank. HDFC Securities provide both online trading and trading on phone. The HDFC Securities trading account has a unique 3-in-1 feature that integrates your HDFC Securities trading account with your existing HDFC bank savings account and existing Demat account. Funds / shares are seamlessly moved from the linked Demat/Bank account to execute the transactions. HDFC sec provides Cash-n-Carry on NSE and BSE, Day trading on both NSE and BSE, Trade on Futures & Options on the NSE and Online IPO Investment. Features on HDFC Securities online trading 1. Seamless Transactions - By integrating your accounts, we ensure minimal waste of time during movement of your funds and shares. 2. Speed - Orders are placed electronically, so proceeds are available instantly. 3. No manipulation - To prevent any mismanagement, we will send you an email confirmation, the minute your order is executed. 4. Safety and Security - HDFC Securities offer the highest level of security such as 128-bit encryption technology.

5. Dedicated and Separate contact numbers - for trading over the phone as well as for customer care. Document required to open account with HDFC sec Any Indian resident/non resident individual NRI (except for the US NRIs) or an Indian Corporate can register with HDFCsec. However, to become a member, you will have to open savings/current and demat accounts with HDFC Bank. Following documents are required to open accouunt with HDFCsec 1. One passport size photograph. 2. Copy of PAN card. 3. Identity proof - copy of passport or PAN card or voter ID or driving license or ration card. 4. Address proof - copy of driving license or passport or ration card or voter card or telephone bill or electricity bill or bank statement. Brokerage and fees:
1. Rs. 799/- (Including trading account, bank account and DP account

with HDFC) HDFC Bank savings account required a quarterly minimum balance of Rs. 2,500/-. If you already have saving account or DP account with HDFC, you could link them with trading account.

ICICI DEMATE ACCOUNT

Type of Account ICICI Direct offers 3 different online trading platforms to its customers: 1. Share Trading Account Share Trading Account by ICICI Direct is primarily for buying and selling of stocks in BSE and NSE. This account allows Cash Trading, Margin Trading, Margin PLUS Trading, Spot Trading, Buy Today Sell Tomorrow and Call and Trade on phone. ICICIDirect.com website is the primary trading platform for this trading account. They also provide installable application terminal based application for high volume trader. 2. Wise Investment Account Along with stock trading and IPO investing in BSE and NSE, Wise Investment account also provide options to invest in Mutual Funds and Bonds online.Online Mutual funds investment allows investor to invest on-line in around 19 Mutual Fund companies. ICICI Direct offers various options while investing in Mutual Funds like Purchase Mutual Fund, Redemption and switch between different schemes,

Systematic Investment plans, Systematic withdrawal plan and transferring existing Mutual Funds in to electronic mode. This account also provides facility to invest in Government of India Bonds and ICICI Bank Tax Saving Bonds.

3. Active Trader Account

Active Trader account gives more personalized investment options to the investors. It allows investor to use online and offline stock trading. It also provides with independent market expertise and support through a dedicated Relationship Manager from ICICI.

Advantages of ICICI Demate Account 1. 3-in-1 account integrates your banking, broking and demat accounts. All accounts are from ICICI and very well integrated. This feature makes ICICI the most interesting player in online trading facility. There is absolutely no manual interfere require. This is truly online trading environment.
2. Unlike most of the online trading companies in India which require

transferring money to the broker's pool or towards deposits, at ICICI Direct you can manage your own demat and bank accounts through ICICIdirect.com. Money from selling stock is available in ICICI bank account as soon as the ICICI Direct receives it. 3. Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes all from one website. General Insurance is also available from ICICI Lombard. 4. Trading is available in both BSE and NSE. Disadvantages 1. Getting access to ICICIDirect.com website during market session can be frustrating.
2. ICICI Direct brokerage is high and not negotiable. 3. Not all stocks are available under Margin Plus

OPENING DEMATE ACCOUNT

Demat account There is no fee for opening a DP account with ICICI Bank. However, a nominal fee towards services is levied as per our tariff. Opt for Standard Rate Card or Frequent Trader Rate Card depending on your trading volume. Or, if you wish to hold your Bonds in Demat form you can choose Bond Rate Card. Account Opening Form to Open Securities Account Resident Non Corporate Account Opening Form

Resident Corporate Account Opening Form

Reparability A. Reparable Demat Account Reparable funds (i.e. those which can be taken abroad) need to be kept in a separate bank account, i.e. NRE Bank account. Typically, funds brought in from abroad are permitted in such an account. Investments made from such funds can be repatriated, i.e. proceeds from sale or otherwise from such investments can be taken abroad. Such investments are maintained in a Reparable Demat account.

B. Non-reparable Demat Account Non-reparable funds (i.e. those which cannot be taken abroad) must be kept

separate from repairable funds in a separate bank account i.e. NRO Bank account. Investments made from such funds cannot be repatriated, i.e. proceeds from sale or otherwise from such investments cannot be taken abroad. Such investments are maintained in a Non-Reparable Demat account. Money once transferred from NRE account to NRO account loses its reparability and hence, cannot be transferred back to NRE account. Mode of Investment A. Portfolio Investment Scheme (PINS) Portfolio Investment Scheme (PINS) is a scheme of the Reserve Bank of India (RBI) under which the 'Non Resident Indians (NRI's)' and 'Person of Indian Origin (PIOs)' can purchase and sell shares and convertible debentures of Indian Companies on a recognized stock exchange in India by routing all such purchase/ sale transactions through their account held with a designated Bank Branch. The designated Bank maintains a record of all investments done under PINS (PINS portfolio). B. Non - PINS Any investment other than under PINS is Typically, this includes: 1. Subscription to Primary market offerings (IPOs) 2. Investments made when resident in India. 3. Investments in Mutual funds 4. Investments in derivatives 5. Gifts and Inheritance Deciding Combination

You may have to open demat accounts of a specific combination if you already hold physical shares in that combination. Physical shares can be converted into electronic form in your demat account by submitting the certificates along with a demat request form. You should also open the required combination under the correct type of demat account: PINS NRE - For shares acquired earlier under PINS on repatriation basis PINS NRO - For shares acquired earlier under PINS on non-repatriation basis Non-PINS NRE - For shares acquired earlier other than under PINS on repatriation basis Non-PINS NRO - For shares acquired earlier other than under PINS on non-repatriation basis and also when 'Resident' in India

Charges of ICICI demate account Particular Opening account Amt. 975/-

Margin trade Squared off trade Delivery bases trade Average trading volume Annual maintenance fee Average balance Demat transaction rate Trading volume rate Transaction value Brokerage rate Services (0.05% of the brokerage) Demate charges Annual services Agreement stamp charge Buying and selling share

0.3 to 0.1% 0.2% to 0.425% 0.25% to 0.75%. 65000/500/- (actual 450/- ,50for including e-mail or post statement. 5000/0.75% brokerage 0.05% brokerage 10000/85/nil nil 500/100/Nil

No amount is required for opening the demat account. These are applicable as both standard charges and frequent/sub broker charges. The ICICI demat account charge for annual service is Rs 500 and for frequent/sub brokers is Rs 1200. An agreement is required to make in a stamp paper of Rs 100. The ICICI demat account charges are nil for buying shares. The selling charges applicable are Nil for trade on icicidirect.com

For internet submitted instructions 0.02% (frequent/sub broker) and 0.04% (standard charges). For instructions submitted through call centers 0.02% (frequent/sub broker) and 0.04% (standard charges). For instructions submitted through branches 0.02% (frequent/sub broker) and 0.04% (standard charges). If rejection fails Rs 30 are the standard applicable charges and Rs 15 are the applicable charges for frequent/sub brokers. Dematerialization charges for each request form Rs 35 and Rs 2 for each extra certificate. Rematerialisation charges are Rs 20 for every 100 securities ICICI demat account charges are nil for the closure of the account. Rs 10 per ISIN are applicable for instruction submitted through branches. Additional account statements charge Rs 20 both standard rates and for frequent and sub brokers.

Brokerage and fees

1. Account opening fees : Rs 750/- (One time non-refundable) 2. Brokerage : ICICIDirect.com brokerage varies on volume of trade

and inclusive of demat transaction charges, service taxes and courier charges for contract notes. It ranges from 0.1% to 0.15% for margin trades, 0.2% to 0.425% for squared off trades and 0.4% to 0.85% on delivery based trades.

CONCLUSION Comparison of two companies with fees and brokerage chares. Particular Account opening Annual maintenance Fee HDFC Nill 500/ICICI 975/500/-

Dematerialization

3/-

per certificate ,

2/- for each extra certificate and 35/- per request. 20/- for every 100

35/- per request. Rematerialisation Sell Buy Pledge services 10/- per certificate,

securities. 0.04% of the value. Nil Minimum 20/-. Nil 0.04% value of per transaction or minimum 25/Nil Nil

Data transaction Communication Data Transaction

1000/20 rs per request and

1000/Call centre 0.02% to

500 per foreign address. 0.04% of value. on Nil Nil

Buy a share

Conclusion: By studying comparative analysis of both hdfc and icici bank demat account we should promote more hdfc bank demat accounts since charges are minimum and sell are more.