Sunil Prabhakar Shcil-Depository

PROJECT REPORT
AT
STOCK HOLDING CORPORATION OF INDIA LIMITED
ON
“A Descriptive Analysis of Depository Participant With
Reference to Stock Holding Corporation of India Ltd”
A project Report submitted towards the partial fulfillment of the requirements of
The two years full-time Post Graduate Diploma in Management.
Submitted by: Sunil Prabhakar
Post Graduate Diploma in Manager (Banking& Financial services)
Roll No.:2k91/BFS/51
(2009-11 Batch)
ASIA-PACIFIC INSTITUTE OF MANAGEMENT
3 & 4, Institutional Area, Jasola, New Delhi-110025

DECLARATION
I, Sunil Prabhakar studying in Asia Pacific Institute Of Management Delhi do hereby

declare that this Project relating to Stock Holding Corporation of India Ltd (SHCIL)
and the title “A Descriptive analysis of the depository participant with Reference to
SHCIL” has been prepared by me after undergoing the prescribed industrial survey as
part of the requirement of the PGDM program of AIMA. My guide for the training was
Mr. Vijay Garg (Branch manager) and Mentor Prof AK Sinha 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. I also declare the same report has not been
submitted to any other University or Board for the award of any other degree or
diploma.
Name of student: Sunil Prabhakar

Place: New Delhi Reg. No – 2K91/BFS/51
ACKNOWLEDGEMENT
An exchange of ideas generates a new object to work in a better way. Apart from the
ability labor and time devotion, guidance and co-operation are two pillars for the success
of a project. Whenever a person is helped or co-operated by others, his heart is bound to
pay gratitude to others.
A satiation and pleasure that accompany the successful completion of task would be
incomplete without the mention of the people who have made it possible and whose
consent guidance and encouragement served as a guiding light for the completion of the
study.
I express my sincere gratitude to Dr. D.K. Banerjeee, Director, AIM, for providing me
an opportunity to undergo summer training. And also for those who have guided and
inspired me in completing this study. I would like to express my deep sense of gratitude
to Prof. AK Sinha for giving me support and helping me during my project study.
I would like to express my gratitude to my project guide Mr. Vijay Garg 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 and
suggestions.
THANKYOU ALL
SUNIL PRABHAKAR
CONTENTS
Chapter No. Contents Page
Chapter I At a Glance 1-2
Chapter II Introduction 3-6
• Background
• Purpose
• Objective
• Limitations of the study
• Plan analysis
Chapter III Industry Profile 7-21
Chapter IV Company profile 22-27
Chapter V Products and Services 28-72
Chapter VI SWOT Analysis 73-75
Chapter VII Methodology 76-77
Chapter VIII Analysis & interpretation 78-96
Chapter IX Summary of findings 97-99
Recommendations & Conclusion 100-102
Bibliography 103-104
Annexure 105-108
CONTENTS OF THE GRAPHS
Serial Title Page

Number Number
Table 1 Age group of respondents 79
Table 2 No. of shareholders trading in SHCIL 80
Table 3 No. of years the respondents holding the shares 81
in SHICL
Table 4 How safe the securities are in opting the demat 82
Table 5 Most preferred DP product 83
Table 6 Selection of the source in which information 84
is available
Table 7 Selection of Stock Exchange by the shareholders 85
and brokers.
Table 8 Attribute of services available at SHCIL 86
Table 9 Selection of investment avenues. 87
Table 10 Tailor-made services 88
Table 11 Value-added services available to the clients 89
at SHCIL
Table 12 Satisfaction in terms of Infrastructure, software 90
of the organization.
Table 13 Effectiveness of the DP services compared to 91
Other financial institutions.
Table 14 Interest rates in terms of loan against demat 92
Held in DP.
Table 15 Safety & security of the demat account. 93
Table 16 Service charges charged by SHCIL 94
Table 17 Effectiveness in settling the stock 95
Table 18 On-line trading. 96
Stock Holding Corporation of India Limited
At a Glance
Asia-Pacific Institute Of Management 1

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. For a finance manager it will be of great help to know how to
properly utilize the resources of the organization. It is not only the theory, which will
help in the corporate world, but also how things happen practically. Here there is an
opportunity to learn how the things happen practically. Every day the various
activities happening in the department are observed and understood carefully.
The study initially concentrated on obtaining the information from the investors on
various parameters. As it is a finance project mainly data was be available internally.
After finishing this task, the actual analysis of the project has been started where
certain important calculations has been done. This helped to come out with some
conclusions. Also the data pertaining to some Demat Section Managers has been
taken and analyzed which made to arrive at some interim conclusions as a part of
project.
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.
Another problem faced by it is technology; systems at stock holding are not
technologically upgraded: it follows old technology and modes of making entries of
payments into systems. Due to system error payments to franchisees are not made on
time, which in turn affects their business relationship. Since stock holding is into DP's
business from long time it still follows old methods of operations. 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”.

Introduction

Background
Depository
A depository is a facility for holding securities, which enables securities transactions
to be processed by book entry. To achieve this purpose, the depository may
immobilize the securities or dematerialise them (so that they exist only as electronic
records).' India has chosen the dematerialisation route. In India, a depository is an
organization, which holds the beneficial owner's securities in electronic form, through
a registered Depository Participant (DP). A depository functions somewhat similar to
a commercial bank. To avail of the services offered by a depository, the investor has
to open an account with it through a registered DP.
Depository Participant
A Depository Participant (DP) is an agent of the depository who is authorized to offer
depository services to investors. Financial institutions, banks, custodians and
stockbrokers complying with the requirements prescribed by SEBI/ Depositories can
be registered as DP.
Benefits of Depository
 Bad delivery eliminated
 Immediate transfer of shares
 No stamp duty on such transfers
 Elimination of risks that are normally associated in dealing with Physical
certificates - loss / theft / mutilation due to careless handling / forgery / etc
 Reduced transaction cost

Services provided by Depository
 Dematerialisation (usually known as demat) is converting physical certificates
to electronic form
 Rematerialisation, known as remat, is reverse of demat, i.e. getting physical
certificates from the electronic securities

 Transfer of securities, change of beneficial ownership

 Settlement of trades done on exchange connected to the Depository
 Pledge / Hypothecation of demat shares, viz. Loan against shares
 Electronic credit in public offering of the Companies
 Non - Cash corporate benefits, viz. Bonus / Rights - direct credit into
electronic form
No. of Depository in the country

National Securities Depository Ltd.
Central Depository Services Ltd.
Research Title
A Descriptive Analysis of Depository Participants in Delhi with reference to India’s
Largest DP “Stock Holding Corporation Of India Ltd.”
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
The main objectives of the project undertaken are-
 To understand the attitude and perception of investors/savers towards the DPs.

 To ascertain SHCIL’s position in the competitive market.

 To collect the data on various parameters
• Tariff
• Service
• Reach(No. of branches)
• Promoters
• Product
 To develop and analyze strategies of SHCIL to help improve its market
share.
 To offer suggestions based upon the findings.
Limitations of the study
 The study is limited only to SHCIL, HO Nehru Place New Delhi.
 There was a constraint of time.
 The entire study is based on the information provided by the various
respondents at SHCIL.
 For the purpose of collecting vital information, Manager of the organization
is only contacted & interviewed. Since he is an individual, his biases may have
creped into the data given.
 The policy of the company does not allow getting all the information.
PLAN ANALYSIS
The collected data will be analyzed with the help of parametric techniques such as
percentages, correlation, regression, co-efficient of variation and the like. Wherever
necessary tables charts, graphs, diagrams are used.

INDUSTRY PROFILE

INDUSTRY PROFILE
FINANCIAL MARKET
Globalization of the financial market has led to a manifold increase in the investment.
New markets have been opened: new instruments have been developed: and new
services have been launched. Besides, a number of opportunities and challenges have
also been thrown open. Stock Holding Corporation of India Limited. (SHCIL), the
premier custodian of Indian capital market providing services of international
standards, is geared up to reposition itself in the changed scenario. With world —
acclaimed automation and a team of committed professionals, SHCIL is confident of
scaling new heights. Combining its financial strength and technical expertise to serve
the clients better, wherever and whenever it is needed, SHCIL envisages acting as a
partner one can trust. 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. The Indian
capital market had been dormant in the 70’s and 80’s has witnessed unprecedented
boom during the recent years. 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 dematerialise securities
and enable their transactions in book form electronically.
In India, the Depository Act defines a depository to mean “A company formed and
registered under the companies act, 1956 and which has been granted a certificate of

registration under sub-section (la) of section 12 of the Securities and Exchange Board
of India (SEBI) act, 1992”.
Legal Framework of Depositories:
The depositories act of 1996 provides for regulation of depositories in securities and
for matter there with or incidental there to and came into from 2O” of September,
1995.
SEBI formulated the Depositories and participants regulations act, 1996 to oversee the
matter regarding admission and working of depositories and its participant. The
depositories act passed by parliament received the presidents assent on august 1, 1996
enables the setting up of multiple depositories in the country. Only a company
registered under the Companies Act Of 1956 and sponsored by the specified
categories of institution can setup depositories in India. The depository offers services
relating to holding of securities and facility processing of transactions in such
securities in book entry form. The transactions handed by depositories include
settlement of market trades, settlement of off trades, Securities lending and borrowing,
pledge and hypothecations.
Eligibility Criteria For a Depository:
Any of the following may be a depository:
1. A public financial institution as defined in section 4a of the Companies Act Of

1956.
2. A bank included in the second schedule to the RBI Act, 1934.
3. A foreign bank operating in India with the approval of the RBI.
4. Recognized stock exchanges.
5. An institution engaged in providing financial services where not less than 75% of
the equity is held jointly or severally by these institutions.
6. A custodian of securities approved by government of India.
7. A foreign financial services institutions approved by government of India.

The promoters of depository are also known as its sponsor. A depository company
must have a minimum worth of Rs. 100 Cr. The sponsor of the depository has to hold
at least 51% of capital of the depository company.
Agreement between Depository and Issuers:
If either the issuer (a company which has issued securities) or the investor opts to hold
his securities in demat form, the issuer enters into an agreement with the depository to
enable the investors to dematerialize their securities. Where an issuer has appointed a
registrar to the issue and Registrar and Transfer (R&T) agent, the case may be for the
securities declared for dematerialization
Rights and Obligations of Depositories:
1. Every depository should have adequate mechanisms for reviewing monitoring and
evaluating the controls, systems, procedures and safeguards.
2. Annual inspections of the procedures and same should be reported to SEBI.
3. To ensure that the integrity of automatic data processor systems is maintained to

safeguard information.
4. Adequate measures including insurances, to protect the interests of the beneficial

owners against any risk.
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 owners.
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
Depository participants (DPS) are described as an agent of the depository. They are
the intermediaries between the depository and the investors. The relationship between
the DP’s and the depository is governed by an arrangement made between the two
under the depositories act. In a strictly legal sense a OP is an entity who is registered
as such with SEBI under the provisions of the SEBI Act. As per the provisions of this
act a OP can offer depository services only after obtaining a certificate of registration
from SEBI.
Eligibility Criteria For Depository Participant
 A public financial institution as defined in sections of the companies act.
 A bank included for the time being in the second schedule to the RBI.

 A foreign bank operating in India with the approval of RBI.
 A state financial corporation established under the provisions of section 3 of

the state financial corporations act, 1951.
 An institution engaged in providing financial services promoted jointly or

severally by any of the institutions mentioned above.
 A custodian of securities who has been granted a certificate of registration by

SEBI.
 A clearing corporations or a clearinghouse of stock exchange.
 A stock broker who has been granted a certificate of registration by SEBI.
 A non-banking finance company..
A person desirous of becoming a DP of NSDL should make an application to SEBI

through NSDL. NSDL evaluates and sends to SEW within 30 with recommendations.
If all the conditions are met SEBI grants the registration certificate to the applicant.
SEBI prescribes a minimum net worth of Rs.5OIakh for stock brokers, R&T agents
and non-banking finance companies (NBFCs) for granting them a certificate &
registration to act as a DR. A certificate of registration is valid for a period of 5 years.
It may be renewed after 5 years.
Rights and Obligations of Depository Participant
1. Agreement with beneficial owners:
The OP must enter into an agreement with a beneficial owner before acting as a DR
on his behalf. A DR while conducting business with a client, acts as an agent of
NSDL and is liable to the clients for all the acts and deeds performed by him.
2. Separate accounts:
The DP shall open a separate account in the name of each beneficial owner’s account
only on receipt of instructions from beneficial owner.
3. Statement of account:
The OP should provide statements of accounts to the beneficial owner as laid in the
agreement with the beneficial owner. It should be done fortnightly if any transactions

are made and at least quarterly if no transactions are done, It can be provided through
internet.
4. Transfer or withdrawal by beneficial owner:
The DP should allow a beneficial owner to withdraw or transfer securities from its
accounts in such manner as specified in the agreement with beneficial owner.
5. Connectivity:
The DP should maintain continuous electronic communication with each P0SItory 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, liabilities, taxes, actual losses and damages of any nature what so ever
suffered like failure to comply with laws, failure to deliver eligible securities etc.
10. Prohibition of Assignment:
No DP can assign or delegate its functions as a participant to any other person without
prior approval of NSDL.
11. Insurance:

DP’s should take appropriate insurance cover to insure against losses arising from any
possible 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:
Where 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 or tampered with sufficient back-up of records should
be taken and made available at all times at different places. SEBI at any time may
cancel the registration of DP if they are not in complying with the rules laid by the
depositories act. Like guilty of fraud, repeated defaults. DR may sometimes choose to
terminate its participation in the depository by giving notice of less than 30 days.
GOVERNING BODIES OF DEPOSITORY PARTICIPANT
National Securities Depository Limited (NSDL)
National securities depository limited is the first depository to be set up in India. It

was incorporated on December 12, 1995. The Industrial Development Bank Of India
(IDBI) the largest development bank in India, UTI the largest Indian mutual fund and
the National Stock Exchange in India sponsored the setting up of NSDL and
subscribed to the initial capital. NSDL commenced operations on November 8, 1996.
Following organizations are share holders of NSDL as on march 31, 2001:
a) INDUSTRIAL DEVELOPMENT BANK OF INDIA
b) UNITED TRUST OF INDIA
c) NATIONAL STOCK EXCHANGE
d) STATE BANK OF INDIA
e) GLOBAL TRUST BANK
f) CITIBANK
g) STANDARD CHARTED BANK

h) HDFC BANK
i) HSBC
j) DEUTSCHE BANK
k) DENA BANK
l) CANARA BANK
Ownership:
NSDL is a public limited company incorporated under the companies act, 1956.
NSDL had a paid up equity capital of Rs.10 crore. The paid-up capital has been
reduced to Rs.80 crore since NSDL has bought back its shares of the face value of
Rs.4.2 crore in the year 2000. However, its network is above Rs.100 crore as required
by SEBI regulations. -
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 EC etc. are governed by the bye-laws of NSDL in
this regard.
Bye-laws of NSDL:
The bye-laws approved by SEBI which contain 14 chapters they are:
a) Short title and commencement
b) Definitions
c) Board of directors
d) Executive committee
e) Business rules
f) Participates
g) Safeguards to protect interest of clients and participants
h) Securities

i) Accounts by book entry
j) Reconciliation accounts and audit
k) Disciplinary action appeal
l) Appeals
m) Conciliation
n) Arbitration
Function of NSDL:
NSDL performs the following functions through Depository participants (DP)
 Enables the surrender and withdrawal of securities to and from the depository
(dematerialisation and rematerialisation).
 Maintains investor holdings in the electronic form.
 Effects settlement of trades not done on the stock-exchange (off-market

trades).
 Transfer of securities.
 Pledging I hypothecation of companies or corporates.
 Receipt of non-cash corporate benefits like bonus rights r electronic form.
 Stock lending and borrowing.
The investors interact with a depository participant (DP) of NSDL. A DP can be a

bank, financial institution, a custodian or a broker. Just as one opens a bank account to
avail of the services of a bank, an investor has to open an account with a DP in order
to avail of the depository facilities.
Central Depository Services Of India Limited (CDSL)
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, and 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. Some of the important
milestones of CDSL system are:
. CDSL received the certificate of commencement of business from SEBI in February

1999.
• Honorable union finance minister, Shri Yashwanth Sinha flagged off the operations
of CDSL on July 15 1999.
• Settlement of trades in the demat mode through BOl shareholding limited, the
clearing house of BSE started in July 1999.
• All leading stock exchanges like national stock exchange, Calcutta stock exchange,
Delhi stock exchange, stock exchange Ahmedabad, etc have established Connectivity
with CDSL.
• At the end of December, 2007, over 5000 issuers have admitted their securities
(equities, bonds, debentures, and commercial papers), units of mutual funds,
certificate of deposits, etc. into the CDSL system.
BENEFITS AND SAFETY OF DEPOSITORY SYSTEM
In the depository system the ownership and transfer of securities take place by means
of electronic book entries. At the outset, this system capital market of the dangers
related to handling of paper. The benefits that are accrued by this system are:
> Elimination of bad deliveries:

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.
> Elimination of all risks associated with physical certificate:
Dealing fl 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.
> No stamp duty:
No stamp duty for transfer of equity instruments and units of mutual funds in this
system.
> Immediate transfer and registration of certificate:
Once the securities are credited, to the investors account on payout, he becomes the
legal owner of the securities.
> Faster settlement cycle:
The exclusive demat segment follow rolling settlement of T+2 days which enables
faster turnover of stock and enhance liquidity with the investor.
> 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.
> Faster disbursement of non-cash corporate benefits:
NSDL provides for direct credit of non-cash corporate entitlements like rights, bonus
etc., to an investors account ensuring faster disbursement.
> Reduction in rate of interest on loan:
Some banks provide these benefits against pledge of departmentalized securities.
> Increase in maximum limit of advances:
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.

> 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.
> 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.
> Periodic status reports:
DP’s need to provide periodic reports to investors on their holding and transactions.
> Dematerialized securities can be delivered in the physical segment:
From April 1998 this facility is available at stock-exchange where trading in

dematerialized securities is allowed. But physical securities are not allowed to be
delivered in the dematerialized segment, making dematerialized stocks held with the
investors more liquid than physical stocks.
>Elimination of problems related to change of address of investors, transmission etc:
Investors have to inform the change of address to the OF which will be reflected in the
database of all the companies where the investor is a registered holder of securities.
> Elimination of problems related to nominations:
An account holder can get securities in all companies transmitted transferred to his
account by completing formalities with a single entity.
> 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.
> Convenient consideration of account:
To multiple accounts opened by investors, all accounts can be consolidated into one
account by giving instructions to DP.
> Convenient portfolio monitoring:

Client can monitor portfolio by checking a single statement of holding/transactions
> Increased volumes:
Due to case in transaction and related costs, many players have entered/increased their
transaction, which increases liquidity.
> Newer services:
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.

Company profile
COMPANY PROFILE

STOCK HOLDING CORPORATION OF INDIA LIMITED

1.1 Introduction to the company:
Flagged off at the initiative of the Government of India, SHCIL enjoys an enviable
parentage that very few organizations can boast of, including leading Indian Financial
Institutions and the Insurance majors. It has been jointly promoted by IDBI, ICICI,
IFCI, IIBI, UTI, LIC, and GIC and its subsidiaries.
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 its
existence.
With sustained market leadership, the biggest investing body of the country in its
client list, SHCIL ensures that its technology support not only holds enormous
databases together but also makes sense and service out of it too.
The Smithsonian Institute’s Award for “Innovative Use of Technology in the Field
of Finance” in1996 and “Computer Society of India Award” were affirmations of its
efforts, long before information technology started leapfrogging across the country.
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.
1.2 Vision of the Company:

“To become one stop shop for all financial services”.

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.
1.3 Mission of the Company:

“To spread Quality Service through the innovative use of technology”.
1.4 Objectives of the Company:

 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.
 To provide justified service to every rupee the client pays.
 To ensure security and convenience of transaction to its clients at reasonable
price.
 To channel technology to make convenient products for financial market that
give quantum benefits to investors, corporate houses and brokers.
 To reach 37 million Internet users in the years to come with e-commerce
projection scaling USD 1.7 billion.
 To move with speed and ease, diversifying into new areas, considerably on
others and sharpening its focus and paradigms.
 To increase its customer base, this at present is 7 lakh.
 To evolve a new strategy to emerge as a broad based financial powerhouse in
the years to come.
 To find ways to make information and reporting system more effective for the
institutional clients.
 To expand to the South-East Asia, with the aim of becoming the leader.

1.5 Basic facts about SHCIL
 SHCIL is India’s largest depository participant.
 SHCIL has around 20% market share i.e. over 8 lakhs demat accounts.
SHCIL has approx, 50% market share of delivery- based transaction which amount to
1.33 crore transaction.

1. Short title and commencement

2. Definitions
3. Board of directors
4. Executive committee
5. Business rules
6. Participates
7. Safeguards to protect interest of clients and participants
8. Securities
9. Accounts/transactions by book entry
10. Reconciliation, accounts and audit
Our Values
• Safety and Efficiency of operations is a hallmark of SHCIL
• Professionalism and Integrity
• Customer First
• Relationship Building
• Commitment to Quality irrespective of asset size

HIERARCHICAL STRUCTURE OF SHCIL
BOARD OF DIRECTORS
MANAGING DIRECTOR & CEO
JOINT MANAGING
DIRECTOR
Sr V P ( BUS. DEV) Sr VP (FINANCE) VPs (FUNCTIONAL)
ASSISTANT VPs DIVISIONAL

MANAGERS
List of various functional VPs:

• VP (Depository Services)
• VP (IT)
• VP (Products)
• VP (Personnel)
• VP (HRD)
• VP (R&D)
• VP (Facilitation centre coordination)
List of various functional Managers:
• Regional Manager
• Area Manager
• Branch Manager
• Assistant Manager
• Sr.Executive
• Executive
• Sr.Officer Trainee
• Officer Trainee

Product and services

PRODUCT PROFILE
1. ADDSHARES
INTRODUCTION
· SHCIL arranges loan against DEMAT shares.
· Tie-up with reputed banks which offer you the most competitive interest rates in
the market.
· You can use the shares in your free account as collateral and take a loan from any of
our empanelled banks.
· SHCIL completes your documentation and processing and gives you a cheque within
48 hours of application.
· This is a pure value add to your depository account with us.
· Add shares are available at SHCIL centers in all the major cities.
FEATURES
· Loan against DEMAT shares held in the DP account with SHCIL.
· Competitive interest rates from a range of banks SHCIL has tied up with.
· SHCIL processes the entire paperwork required with the bank.
· The service is available at any of over 100 branches of SHCIL.
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
2. EQUIBUY

Even after payments have been made we have to wait patiently to see those shares
reflected in the DEMAT account. With the odd surprise of not seeing them at all
which you cannot discount! As your depository participant SHCIL assures you safe
delivery of shares every time you buy on the exchange. We have lined up a panel of
reputed brokers who process your orders on priority.
Our positions as the clearing corporations of leading stock exchanges ensures smooth
and sure credits in your account. An initial advance and timely replenishments into the
purchase advance account take care of the payment for your purchases. Go through
the detailed EQUIBUY procedure and you will see how EQUIBUY in a one stop shop
for your share purchases.
FEATURES
· An EQUIBUY instruction from you gets the shares credited into your account the
next day of payout.
· Payment for your purchase made from a running account called purchase advance
into which you remit an initial advance of Rs. 1000 and maintain a minimum balance
of Rs.250 at all times.
· Choose one or more brokers from a list of 77 brokers empanelled with SHCIL.
Registration with broker is not necessary if you are already registered under any of
our other product schemes.
· Purchase on BSE or NSE.
ADVANTAGES
Buy shares with a single instruction and get an assured credit of shares into your
account the next day of payout. Leave the settlement procedures and broker
interaction to us.
· Affect a faster turnaround of your portfolio.
· EQUIBUY has a very nominal charge attached to it.
· An initial advance of Rs. 1000 in the purchase advance account and replenishments,
as and when necessary, take care of payment for your purchases.
· Choose the exchange you want to buy from- BSE or NSE.
· Choose from a range of 77 SHCIL empanelled brokers to execute your purchases.

· EQUIBUY from the SHCIL center closest to you. Select from 200 plus SHCIL
centers across the country.
PROCEDURE
· If you are not already registered with one or more of our 77 empanelled brokers
under any of our other product schemes, register yourself by filling up a broker
registration form.
· Fill up a remittance slip to open the purchase advance account by making an initial
advance of Rs. 1000.
· Approach any SHCIL branch and submit a purchase request
slip.
· Your request will be good till the end of the day. If the shares are not purchased
before the end of the day your request lapses and a fresh request can be submitted the
next day.
· Your purchase request is transmitted to the broker as soon as you place request.
· The broker executes the trade and confirms trade details to SHCIL. The payment for
the shares purchased along with the service charge is made from the purchase advance
account.
· The shares get credited into your account the next day of payout
.
TARIFF
On Delivery Basis
· 0.55% on the value of transaction on delivery basis with a minimum of Rs.50
per client per broker settlement.
3. FUNDINVEST
Introduction

Fund Invest is a basket of financial products, ranging from fixed income securities
like fixed deposits, Infrastructure bonds and Capital Gain Bonds to variable income
securities like Initial Public Offers (IPO’s) of Equities and Mutual Funds. It is an
attempt to offer financial products that cater to the various investment needs of our
esteemed clients. An effort to guide the investor to a product portfolio that best suits
his risk- return profile.
Applications for investments can be source from any of the SHCIL offices. Apart
from guiding our investor to pick up the right combination of investment instruments,
we help them 'after-sales' service, by acting as an interlocutor between the investor
and the issuer of the securities. SHCIL is an AMFI Registered Mutual Fund Advisor
(ARMFA).
Features
At present, we are distributing schemes of 25 different Mutual Funds
All these Funds offer wide varieties of investment option depending on the risk
appetite of the investor. Some of the major categories are:
Debt Funds: The Debt Funds have the mandate of investing primarily in Debt papers
Equity Funds: The Equity Funds have the mandate of investing primarily in Equities
Balanced Funds: The Balanced Funds have the mandate of investing both in Equities
as well as Debt papers.
Capital Gains Bonds come under 54 EC Capital Gains Bonds, where investors get
exemption from Capital Gain tax. These are 'on -tap ' issues. At present, SHCIL is
distributing Capital Gain Bonds of Rural Electrification Corporation, National
Housing Bank, Small Industries Development Bank of India and National Highway
Authority of India.
Infrastructure Bonds are issued by ICICI Bank and IDBI, with Section 88 as the main
feature

Private Placements: Debt papers issued for Private Placement with Structural
Obligations by the State and Central Government typically targeted for Trusts and
Provident Funds are distributed by Stock Holding.
Fixed Deposits: Fixed Deposits with high investment rating and issued by blue- chip
corporate are distributed by us. These papers generally offer 50 to 100 basis points
more than bank fixed deposits of comparable period. At present, we are distributing
IDBI Suvidha Fixed Deposits and HDFC Fixed Deposits.
Initial Public Offer: IPO’s offered from blue-chip corporate can be subscribed from
Stock Holding. Issues recently distributed by us are Canara Bank, Allahabad Bank,
Bharti Tele and I- Flex, Jaypee Infra , SJVN,
List of Mutual Funds
Alliance Capital Mutual Fund
Birla Sunlife Mutual Fund
BOB Mutual Fund
Canbank Mutual Fund
Cholamandalam Mutual Fund
Deutsche Mutual Fund
DSP ML Mutual Fund
GIC Mutual Fund
HDFC Mutual Fund
HSBC Mutual Fund
IL & FS Mutual Fund

ING Savings Mutual Fund
JM Mutual Fund
Kotak Mutual Fund
LIC Mutual Fund
Principal Mutual Fund
Prudential ICICI Mutual Fund
Reliance Mutual Fund
Sahara Mutual Fund
Standard Chartered Mutual Fund
Sundaram Mutual Fund
Tata Mutual Fund
Templeton Mutual Fund
UTI Mutual Fund
4. GOI BONDS

Savings Bonds are issued by RBI on behalf of Government of India in the following
series.
8.0% taxable bonds
These Bonds are held in electronic form in an account called Bond Ledger Account
(BLA). Bond Ledger Accounts can be opened and operated with RBI designated
Receiving Offices. SHCIL has been designated as one of the Receiving Offices by
RBI for this purpose. Subscriptions for Savings Bonds can be submitted at any of our
branches.
Savings Bonds being sovereign in nature are absolutely safe and an attractive
investment option in the current volatile market situation.
The following categories can subscribe to Savings Bonds:
Category of Investor 8.0% (Taxable)
1. Individual
His or her individual capacity.
Individual capacity on joint basis.
Individual capacity on anyone or survivor basis.
On behalf of a minor as father/mother/legal guardian.
2. HUF (Hindu Undivided Family)
3. Charitable Institution
Charitable Institution to mean a Company registered under Section 25 of the Indian

Companies Act 1956
An Institution which has obtained a Certificate of Registration as a Charitable

Institution in accordance with a law in force

Any institution which has obtained a certificate from Income tax Authority for the
purposes of Section 80G of the Income Tax Act, 1961
4. University
University means a University established or incorporated by a Central, State or

Provincial Act and includes an Institution declared under section 3 of the University
Grants Commission Act, 1956 to be a University for the purposes of that Act
Features
The salient features of the Bonds are listed below:
1. Investment Limit
Minimum investment is Rs.1000 and there is no maximum limit
2. Interest Option
Payable half yearly on 1st Feb, 1st Aug or cumulative on maturity.
3. Tax Benefits
Interest is taxable under IT Act 1961. Exempt from Wealth Tax under Wealth Tax
Act 1957
4. Transferability : Non-transferable, non-tradable and cannot be used as

collateral for borrowings
5. Nomination : Only sole holder or surviving holder can nominate
6. Repayment: Repayable on expiry of 6 years from date of issue. No interest
would accrue after maturity
7. Premature Encashment is not available.
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.
 Electronic Clearing Services: You can avail of Electronic Clearing System
(ECS) services. This ensures automatic credit of benefits and redemptions
when they accrue.
 Easy access: You can apply for subscriptions into these Bonds in any SHCIL
center across the country.
 Dispatch: Certificate of Holdings is dispatched to the client through courier on
realization of subscription.
Procedure
Subscription is a very simple process. Obtain the application form from any of SHCIL
notified centers across India.
SHCIL officials will assist you in filling up your application form.
Fill up ALL the relevant columns provided in the Application Form. e.g. For ECS
facility, a proof of the ECS Account like Cancelled Cheque / Banker's Certification
authenticating the Account No. and MICR details.
Attach a cheque / draft / pay order in accordance with the series of subscription you
want to make for the requisite amount in favour of “Stock Holding Corporation of
India Ltd. A/C GoI 8.0% Savings (Taxable) Bonds”
A Certificate of Holding will be issued specifying the investment(s) made under the
Bond Ledger Account. The Date of Investment will be the Date of Realization of the
instrument(s).
Documents required
ECS Mandate Documents
Power of Attorney Documents (If appointed

HUF Declaration (for HUF investors only)
Certificate of Identity - for address change and nominee claims
Minor - Birth certificate, Legal or Natural guardian certificate
Form 60 or PAN for investments above Rs.50,000
Charitable Institutions - TDS exemption certificate from IT Department, Board

resolution, Trust Deed
Form 15H (Individuals Claiming Exemption of TDS)
Universities - Incorporation Certificate under Section 3 of the University Grants

Commission Act, 1956
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.
Features

 An insurance policy compensates you against the financial impact that can
arise following loss, damage or destruction of your property (such as home or
vehicle) or your health or life.
 A fundamental principle of insurance is to put you in the same financial
position after a loss or accident that you enjoyed before the loss. This is
relatively easy with repair or replacement of (say) a car, but is much more
difficult with the loss of a life. The insurance policy is a contract and like any
contract contains clauses and conditions. Claims are settled in accordance with
the conditions detailed in the policy.
 SHCIL distributes Life insurance policies of LIC and Non-Life insurance
policies of NIA.
 The service is available at any of over 100 branches of SHCIL.
LIC products
1. KEY MAN INSURANCE
2. CHILDREN’S POLICY
Komal jeewan plan 159
Jeewan kishore plan102
Jeewan Chayya plan103
3. ENDOWMENT POLICY
Endowment with profits plan14
Limited payment endowment with profits plan48
Jeewan Mitra plan 133
Jeewan Mitra plan 149
Join life (Jeewan Sathi) policy plan 89

4. RETIREMENT PLAN
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. If a Key
Man is an employee/officer in the Company /firm, the quantum of sum Assured will
be limited to ten times of annual remuneration paid to the employee. The value of
perquisites can also be considered as part of remuneration to the extent of 30% of
salary for this purpose.
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. The close relations such
as grandparents, elder brothers or sisters, uncles both from paternal or maternal side

can gift 'single premium policy' for love and affection under this plan. In such cases
also, the policies will be proposed by father, mother or legal guardian.
JEEWAN KISHORE Plan102
• High bonus from day one.

• Child becomes owner of the policy automatically at the age of 18 years.
• Risk commences after 2 years of policy or on completion of 7 years of age,
whichever is later.
• No medical examination of the child if age is less than 10 years.
JEEWAN CHAYYA Plan 103
• Ideal for parents having less than a year old child.

• Makes provision for education/ marriage of the child.
• 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, if the
prospect is having a child of less than one year of age as on date of registering the
proposal. This non-medical is exclusive for other policies.
ENDOWMENT WITH PROFITS Plan 14
• Moderate Premiums
• High bonus
• High liquidity
• 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. Premiums are usually payable for the selected term of
years or until death if it occurs during the term period.

LIMITED PAYMENT ENDOWMENT WITH PROFITS Plan 48
Just as in the case of limited payment whole life polices, here, too, the payment of
premium can be limited either to a single payment or to a term shorter than the policy.
The endowment is, however, payable only at the end of the policy term, or upon death
of the policy holder if it takes place earlier.
If payment of the premiums ceases after at least three years' premiums have been paid,
a free paid-up Policy for an amount bearing the same proportion to the sum assured as
the number of premiums actually paid bears to the number stipulated for in the policy,
will be automatically secured provided the reduced sum assured, exclusive of any
attached bonus, is not less than Rs.250 Such reduced paid-up Policy will not be
entitled to participate in the profits declared thereafter, but such Bonus as has already
been declared on the Policy will remain attached thereto.
JEEWAN MITRA Plan 133
The benefits of this policy can be considered only for standard and substandard lives
Class I and II. It cannot be allowed for people engaged in hazardous occupations.
Individuals engaged in dangerous pursuits will be rated against the revised tabular
occupational extra rates. This policy covers the risk for triple the sum assured.
JEEWAN ANAND Plan 149
Jeevan Anand is a With Profit Assurance Plan. It is a combination of the Whole Life
Plan and the most popular Endowment Assurance Plan. The plan provides the pre-
decided Sum Assured and Bonuses at the end of the stipulated premium paying term,
but the risk cover on the life continues till death.
• Moderate Premiums
• High bonus
• High liquidity
• Savings oriented

JOINT LIFE (Jeewan Saathi) POLICY Plan 89
This policy is issued on the lives of the husband and wife provided the female's life
belongs to Category I or is actively engaged in her spouse's business. In case of death
of one of the policy holder the surviving partner gets the sum assured, the premium is
stopped and on death or maturity full sum assured along with bonus is paid back.
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:
• 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.
• Government or private institutions for their employees.
• 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
• By fire, lightning, self-ignition, explosion, burglary, housebreaking or theft.

• Riot or strike.
• Flood, earthquake, cyclone or inundation.
• Transit by road, air, elevators or lifts.
• Liability for third party's injury or death, third party property and towards the
paid driver too.
• 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. From your desktop
you can now send instructions for buying or selling shares. 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..
Features
 A single instruction enables you to combine your trading, fund and share
transfers with SHCIL taking care of the settlement.
 Trade from home on the Internet with a floppy containing the STOCK direct
software or use the Smart Card to trade through the Request Transmitting
Machines (RTMs) placed at specified SHCIL centers and partner banks'
designated branches.
 Security measures based on encryption and digital signature coupled with
smart card technology make your online deals 100% secure.
 Open an account with our partner Banks or open a Purchase Advance account
with SHCIL to facilitate your fund transfers.
 Choose the exchange to trade from BSE & NSE.
Advantages

 OneStopShop
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.
 ChoiceofStockExchanges
Buy/Sell shares on BSE / NSE
Procedure
If you already have a demat account with us, fill up a conversion form to convert your
demat account to Stock direct. If you do not have a demat account, fill up a demat
Account Opening form and submit it at any of our branches.
Register with any of our 77 empanelled brokers by filling up the broker registration
form and submit it along with the account opening / conversion form.
Open a savings bank account with our partner banks or You have the option of
opening with SHCIL a running account called the Purchase Advance by remitting an
initial advance of Rs.1,000 by way of cash / cheque / DD.Should you decide to open a
Bank account, fill up your bank account number in the conversion form and submit a
photocopy of a cheque leaf from your cheque book for MICR details
If you have a PC with internet, you can opt for the software option; alternatively you
can opt for the Smart Card option. You may go in for both the options also.
Within a week of your account opening / conversion, you will be sent an operating kit
containing the following:

-Smart card and/or software.
-Delivery instruction slips.
-Operating manual.
Tariff
0.50% with a minimum of Rs.50 per client per broker per
Settlement*. Normal ISA charges applicable as per client’s tariff scheme. Service tax
applicable as per GOI notifications. Media charges (one time): Rs.100 + Service tax.
(G) PENSION FUNDS

SHCIL offers pension fund administration services to pension fund trusts. The
pension fund scheme administered by the trust could be a defined benefit or a defined
contribution scheme. For both the scheme types, SHCIL offers the entire range of
services that include design, development and maintenance of a customized pension.
SERVICE PROFILE

Depository participants
Introduction
Our Depository Participant services address your individual investment

needs. With a parentage of leading financial institutions and insurance
majors and a proven track record in the Custodian business, we have
reiterated our past success by establishing ourselves as the first ever and
largest Depository Participant in India.
Our Depository Participant services address your individual investment needs. With a
parentage of leading financial institutions and insurance majors and a proven track
record in the Custodian business, we have reiterated our past success by establishing
ourselves as the first ever and largest Depository Participant in India.
From a tentative foray in 1998 into the individual investor arena to servicing around
seven lakh accounts, we have endeavored to constantly add and innovate to make
business a pleasure for you.
Over 100 of our networked branches ensure we are available where you look out for
us.
Across the country, fourteen Depository Participant Machines (DPMs) connected to

NSDL and seven connected to CDSL ensure fast and direct processing of your
instructions.
Our customer-centric account schemes have been designed keeping in mind the
investment psyche of our clients. Your DP account with us takes care of your
Depository needs like dematerialisation, rematerialisation and pledging of shares.
Matching of your scanned signature on every debit instruction with a digitally scanned
original in our system makes all your trading transactions absolutely secure. Proactive
backup of your instructions prior to execution in the Depository makes us oblivious to
system crashes.

At SHCIL, we place a very high premium on client reporting. Periodic statements sent
to you keep you informed of your account status. Dedicated Customer Care lines
manned by trained staff answer your queries on demat / trades / holdings. The latest in
client response at SHCIL is Interactive Voice Response (IVR) system for round the
clock information on your account. Registration on our website, SHCIL Interactive,
enables you to check your account-related information, stock market reports and
statistics, Corporate benefits declared by companies, real-time quotes of scrip’s on
BSE and NSE and so much more online.
Open account
Before you open your account……
 You can collect your account opening form from any of our branches or
download it from our site itself.
 As prescribed by Depository bye-laws, accounts have to be opened in the
exact order in which the name(s) appear on the share certificate.
 Remember that Holding pattern A B is not the same as BA. However, minor
differences like abbreviations, spelling mistakes can be ignored provided
signatures recorded with the registrar / company is the same.
Get your account opening from details :
 Bank account number with complete address and 9 digit MICR numbers are
filled correctly. This will facilitate effective disbursement of monetary
corporate actions into your account.
 Signature of account holders are always in black.
 In case of Power of Attorney, Power of attorney holder has to sign at all places
in lieu of the holder. Certified copy of the POA has to be provided along with
the account opening forms.
 If you would like to receive credit of shares purchased directly into your
account, mark standing instruction as 'Yes'.
Your account is opened.

Once your account is opened, you will be allotted a client identity number. You will
be sent an operating kit containing:
 Details of your account as recorded by SHCIL.

 Copy of the agreement entered into with SHCIL.
 "Delivery instruction by client" booklet allotted to your demat account. This
booklet helps you transfer shares from your account to broker account and
other accounts.
 Now you are ready to operate your DP account.
Maintenance
 Change in permanent/correspondence address
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
statement received from SHCIL is also required.
 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
photocopy of the latest transaction statement received from SHCIL.
 Addition of PAN/Mapin
Request letter signed by the client giving the PAN/Mapin number.
 Accounts with Power of Attorney
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.
 Change of Telephone Number
Request letter signed by all the holders, with a photocopy of the recent telephone bill
and proof of identification of one of the holder.
 Instruction by Fax
Clients may avail this facility by faxing their delivery instructions to SHCIL, by
executing the fax indemnity.
 Change in Standing Instruction
For recording any change in the standing instruction (for receiving direct credits) in
the demat account, we require a letter signed by all the holders.
 Change in Power of Attorney Details
If you have given POA details and you wish to operate the account yourself, the POA
has to be revoked by you in writing.
Death of Beneficiary account holder(s) - Transmission of account
Transmission of account takes place in the event of death of the beneficiary account
holder(s). There can be three situations in transmission of account. See which
category you fit into and follow the relevant procedure:
- When the account has joint holders and one of the holder dies.
- When the account has a sole holder with a nominee.
- When the account has a sole holder without a nominee.
If the shares are transmitted to beneficiary accounts of surviving holders and this
beneficiary account is in a DP other than SHCIL.

 Classify the transmission case into the above categories.

 Over and above the documents explained above, the client master list from the
target DP has to be submitted.
 Freezing of account
An account is frozen/suspended
- Only on your instruction.

- By competent authority i.e. by the Depository / SEBI.
- On receipt of court order.
 Defreezing of account
Defreezing of an account takes place,
- Only on your instruction.

- For defreezing pledge accounts, your instruction has to be
accompanied by bank authorization.
Demat
Dematerialization is the process of conversion of shares from physical form to the

electronic mode. Our dedicated demat team enable you to convert your physical
holdings into electronic mode in a quick and hassle-free manner.
As per SEBI, scrips can be divided as:
 Scrips eligible for demat.
These scrips can be traded either in physical or electronic form.
 Scrips falling under compulsory demat.
These scrips can be traded only in electronic form.
 Scrips falling under transfer cum demat.

In this category, the shares purchased by you in the physical form can be sent to the
Registrar / Company for transfer and dematerialisation at the same time.
 Submit Demat Request Form
Once your demat account is opened with us and you have received your client identity
number, you can start dematerializing your shares. You can submit the shares over the
counter at any of our branches. Do go through the tips given on filling up the DRF to
avoid rejection.
Your shares are dematerialized
 When the company gives you credit, these shares will reflect under "free"
column. Now you can sell these shares. In case the company is not satisfied
with the details furnished, it will reject the shares.
 If your shares have been rejected by the company, SHCIL will forward the
shares to you on receiving them from the company.
Direct Demat
Transfer cum Demat or Direct Demat is a process wherein the shares purchased by
you in the physical form can be sent to the registrar / company for transfer and
dematerialisation at the same time.
What you need to do
 Send the physical certificates along with duly executed Transfer Deeds to the
company / Registrar indicating your intention to directly demat the shares
after transfer.

 The company upon effecting the transfer will send you a letter containing
details of the share certificates.
 Submit this letter with a duly filled DRF to us well within the specified date
mentioned in the letter. If the letter does not reach the company / registrar
before the specified date, the Company / Registrar dispatches the physical
certificates back to you.
What happens in Direct demat
Based on guidelines issued by SEBI, the procedures for transfer cum demat is as
follows:
 Firstly, you will send the physical certificates along with duly executed
Transfer Deeds directly to the company / Registrar indicating your intention
to directly demat the shares after transfer.
 The company / registrar, upon effecting transfer will send you a letter. This
letter will contain all the details of certificates such as folio No. , certificate
no, Distinctive Range Number (DNR), etc.
 The certificates will be retained by the company / registrar. You will fill the
demat particulars in the DRF, attach it with the letter sent by the company and
submit the same to us.
 The letter also specifies a date by which the letter needs to be returned to
them. You will have to submit the DRF along with the company letter to us
before the specified date.
 If the letter does not reach the Company / Registrar before the specified date,
the Company / Registrar dispatches the physical certificates back to you.
 We at our end process this letter in lieu of certificates and create a DRN and
forward the same to the company / registrar along with the DRF submitted by
you.
 The company gives credit against the DRN on receipt of the DRF and ensures
defacing of certificates at their end.
 The defacing of certificates at the company's end is very crucial to ensure that
the certificates are not re-circulated and misused. Hence Transfer cum Demat

procedure is admissible only in case of companies identified by NSDL and

categorized as eligible for direct demat. NSDL permits companies after due
certification by auditors on the internal controls in place at the company.
Pledge
You can pledge or hypothecate your dematerialised shares against loan or credit
facilities extended by a pledgee who also has an account with a DP
The pledge procedure
 Pledgor fills in a form requesting the DP to pledge shares and hands it over to
the DP
 If the form is complete in all respects, the DP processes the form and generates
a pledge / hypothecation instruction number for the request
 Securities to the extent of the instruction are debited from the free or locked-in
balances and credited as pledged balances of the pledgor so that they cannot be
used for any transactions
 The pledgee will submit a form to its DP to accept / reject the pledge /
hypothecation request
 If the pledgee accepts the request by the pledgor, the acceptance is
communicated electronically to the pledgor's DP. Once the pledgee's DP
confirms the acceptance of the pledge, the pledgor cannot cancel the pledge /
hypothecation order. The pledgee's DP executes the pledge / hypothecation
request as per the instructions given
 In case the pledgee rejects the pledge request, the pledgor's DP is intimated
electronically. Now the securities which were earlier credited as pledged
balances will be credited to free / locked-in balances
 Once the loan is repaid by the pledgor, the pledgor initiates the closure of the
plegde. The request for closure is transmitted electronically to the pledgee's
DP. The pledgee's acceptance / rejection of the request for closure of pledge is
transmitted electronically to the pledgor's DP

 If the pledge is closed, the securities will be reflected as free / locked-in

balances
 In case the pledgor defaults in repaying the loan to the pledgee, the pledgee
instructs his DP to invoke the pledge / hypothecation.
Reports
You get the following information at your doorstep:
 Transaction cum billing and holding statement if there has been a transaction
in the account
o Weekly for traders
o Monthly for others
 The transaction cum billing and holding statement will have the following
details :
o Details of transfers executed

o Confirmation of dematerialisation / rematerialisation requests
o Rejection of dematerialisation / rematerialisation requests
o Movement of securities
 Movement of securities on account of pledge creation / closure / invocation.

 Information of allotment details in case of primary market issues
 Quarterly holding statement if there is no transaction in the account.
Tariff
1 Annual membership charge Rs. 500/-

2 Purchase (market and off market) Nil
3 Sale (market and off market) 0.05% (min. Rs.25/-) plus
NSDL/CDSL charges

4 Custody charges NIL

5 Dematerialisation Rs.3/- per certificate
6 Postage per demat request Rs. 25/-
7 Rematerialisation Rs. 25/- per certificate
8 Postage per remat request Rs. 25/-
9 Creation/confirmation of creation of pledge 0.02% plus NSDL / CDSL
charges
10 Closure/confirmation of closure of pledge 0.02% plus NSDL / CDSL
charges
11 Invocation of pledge Rs. 50/- per txn.
12 Late transaction charges (per txn.) Rs. 10/-
Payment option
 Client pays an Imprest of Rs.1000/- per depository account, which will be

adjusted against depository charges. The Imprest option is payable by
cheque/cash and is non-interest bearing. The client undertakes to replenish the
balance before it falls below Rs.250/-.
 Client authorizes SHCIL to collect the dues through ECS facility
Clearing member(CM)
Introduction
SHCIL's long-standing association with Clearing Members has enabled it

to develop services based on an understanding of their working and their
requirement for timely and accurate information.

We accept deposits of base capital and Additional base capital requirements stipulated
by NSE for clearing members trading on its capital market segment. Besides, our new
products with a broker empanelment clause ensure a mutually beneficial tie-up.
Clearing members stand to earn a steady income from our product transactions and
new adds to their client-base, while we capitalize on their rapport with the market.
We currently offer Depository services to more than 680 clearing members of various
exchanges connected with NSDL and CDSL. Our Customer Care lines answer all
your DP queries while the Interactive Voice Response (IVR) system gives you
information on your account and other valuable data like CC calendar details, tariff,
ISIN information, etc. via telephone, fax and e-mail.
Advantages
 For Institutional & Retail clearing members We have customized tariff for
clearing members benefiting
o brokers having very high average trade value
o brokers with big retail clientele
 Special tariffs for :
o CM Principal Accounts
o NSCCL CM Accounts
o Unified Settlement Pool Accounts on CDSL.
 Our Customer Care help lines give timely and accurate information to CMs.
The Interactive Voice Response (IVR) system at SHCIL gives round the clock
information on holdings & transactions, Pay in / Pay out details, overdue cum
holding details, etc. via telephone, fax or e-mail.
 Updated Transaction Statements are available on the website FREE of any
charge whatsoever. Members have a choice of accessing their statements date-
wise for the last one month or settlement-wise for the same period. Current
trading day transactions are also made available, updated to the hour.

 Besides the transaction statements, the Delivery-Out report, which is an

extremely critical report for Clearing Members, is also made available on the
website, updated to the hour.
Open an account – Requirements
 In case of Proprietor's account, if authorized signatory is a person other than

the account holder, then Power Of Attorney is to be submitted by Proprietor
giving authority to that person
If you are shifting from another DP If you are opening a fresh Pool
to SHCIL account .
Account opening form Account opening form
• Board resolution • Board resolution
• Memorandum Of • Memorandum Of
Association Association
• Authorized Signatories
• Authorised Signatories (for
(for corporates)
corporates)
SEBI Registration Certificate clearly SEBI Registration Certificate clearly

indicating that it is for stockbroker. indicating that it is for stockbroker.
• Closure Letter addressed to • Letter from Stock
old DP duly stamped and Exchange stating CC CM
acknowledged by old DP. ID.
• Closure letter and Shifting • In case of ISE mention on
letter has to be on the the letter :
letterhead of CM
Subject : Allotment of CC
• Closure letter should be
CM ID
duly stamped and
acknowledged by old DP.

Shifting Letter addressed to NSDL stating

:
• CM Name
• old CM BP ID
• old DP Name
• New DP name.
Custodial services
Custodial services for Base Capital / Additional Capital requirements
 We accept deposits of Base Minimum Capital (Base Capital) and Additional

Base Capital as stipulated by NSE for clearing members to be able to trade on
its capital market segment.
The securities being deposited shall be subject to legal and beneficial ownership of:
 TM clearing member / spouse in case of individuals

 Any of the partners / their spouses in case of partnership.
 Any of the directors in case of corporate TM clearing member.
 The following securities can be deposited to qualify as deposit
 Listed equity shares of approved companies subject to 15%
margin
 Equity shares of Approved companies in demat form subject to
15% margin (Nifty Scrips) and 25% margin (30 other scrips pertaining to
Junior Nifty group)
 Listed units of mutual funds subject to 15% margin
 Unlisted units of mutual funds subject to 15% margin of the
NAV of the units prevalent on the last day of the preceding month

 Listed PSU bonds subject to 15% margin

 Other debt securities admitted for trading on Wholesale debt
market segment of NSE subject to 15% margin
 Listed GOI / Treasury bills subject to 10% margin
 Units under Unit Scheme 1964 of UTI to be valued at the
lowest of the repurchase prices prevalent in the preceding 12 months
 Deposit of Fixed Deposit Receipts (FDRs) issued by approved
Banks. In case of FDRs, the members have to submit the following:
 A Letter from the Bank in a specified format.

 A Letter from the Member in a specified format
 SHCIL Charges upfront
 National Savings Certificate and Kisan Vikas Patra issued by Post office,
 SGL Securities,
 Certificate of Deposits (CDs) issued by Banks / Institution.
 NSE members may also pledge dematerialised shares in favour of NSCCL for
security Base Capital and additional base capital requirements. The demat
shares pledged by a member as additional base capital will be considered for
the purpose of gross exposure computation. In case of demat scrips, the
following conditions apply:
 The member has to open a separate beneficiary account for Base Capital and
Additional Base Capital-Closure of pledge takes place at the instruction of
NSCCL Replacement / Addition of securities also available-in the name of
Corporate / Directors of the Company in case of Corporate clearing members
-in the name of Proprietor / spouse in case of Proprietary concerns,
 The securities to be pledged to be transferred to the account. Pledge
Instruction along with pledge deed in specified format to be given to SHCIL
 After pledge is created in favour of NSCCL, valuation is given to NSCCL by
SHCIL
 Closure of pledge takes place at the instruction of NSCCL Replacement /
Addition of securities also available

Reporting
Among the host of reporting features offered by SHCIL, the notable ones are
 Online Transaction updates during the day.

 Online date-wise transaction reports, settlement number wise reports etc
 Online redresses of queries through email
 Intimation of failed trades
 Settlement wise holding statements after payout
 Faxes / Emails on specific request
 DO Reporting
Some of these highly specialized reports are provided to you ONLINE and FREE only
by SHCIL.
Derivatives
Introduction
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.
We have developed in-house Back Office systems and procedures to cater to the
needs of various entities in the segment. A dedicated team of professionals handle
derivative operations and assist 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/cash equivalents and

securities), valuation on a regular basis (as per J. R. Varma recommendations)
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.
Advantages
SHCIL has always been a pioneer in clearing and settlement services in the cash
segment at both the exchanges. SHCIL has the capability to handle large volumes of
business with greatest accuracy, keeping customer interests as the top priority.
SHCIL in its endeavor to serve various entities in the derivatives segment has
developed indigenous solution keeping in view the strict regulatory requirements.
 Privacy of each TM’s operations strictly maintained :SHCIL being a

professional clearing member has no trading interests in the derivatives
segment. There is strictly no dissemination of information on trading or any
other operation of any of its clients.
 One-point contact for all the activities: SHCIL’s Derivatives segment is
centralized and all operations are handled by an exclusive derivatives team.
 Dedicated team of professionals to handle Derivatives operations: SHCIL has
a well-trained team of professionals supported by best systems, to handle
derivatives operations at NSE and BSE. Clients can approach the team for
troubleshooting, conceptual understanding or any other operational issue
related to derivatives trading.
 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 banks (HDFC Bank, ICICI Bank, GTB, IDBI
Bank, UTI Bank, Canara Bank etc.) having wide reach and modern facilities
like TT/anywhere banking etc. to contain the time lag in banking transactions.
 Network of more than 200 branches to support outstation clients: SHCIL has
nation wide reach with its 200 plus branches across the country to support

outstation clients. SHCIL’s branches are geared up to provide derivatives

clearing and settlement services to trading members operating from respective
branches.
 In built checks and controls: SHCIL has indigenously designed systems that
take care of the stringent regulatory requirements for derivatives trading in
India.
 Collateral Management: SHCIL has excellent system to manage cash/cash
equivalents/securities deposited as collateral for derivatives trading. Clients
are informed as and when expiry of any instrument approaches. Securities are
transferred in minimum possible time. Corporate actions on securities are
monitored and clients are being informed accordingly.
 Support from Institutional participants: SHCIL being a custodian clearing
member having major institutional clients like UTI, IDBI etc. who are also
promoters of SHCIL, provides more credibility to its clients.
 Competitive service charges: SHCIL is the pioneer in introducing Derivatives
Clearing and Settlement services in the country. To promote derivatives
trading, the service charges are designed not become a hindrance for anybody
entering this market.
 More leverage: There is no need to block assets worth Rs. 50 lakh as initial
margin deposits with exchange. Instead a Trading member can take huge
exposures by investing the same amount through a PCM like SHCIL.
 Low investments: Derivatives trading require complying with stringent
regulatory requirements and huge investment in back office systems for a
Clearing Member. By choosing a PCM like SHCIL, a trading member can
start trading with very little investment in back office systems since a PCM
takes care of the back office activities.
 Institutional Advantage: Advantage of trading for institutional clients. A
trading member can execute institutional orders without shrinking his own
exposure limits as institutional trades are confirmed online by the respective
PCM.

 Confidentiality of Trades: Since SHCIL has no trading rights, the business

details of a trading member are not likely to be misused .There is no
overlapping of business interests.
 Focus: Due to highly competitive nature of the market, SHCIL’s service
charges are normally very low and it makes more business sense for a TM to
outsource the clearing and settlement activities and focus on the core business
of trading.
Open an account – Requirements
 Agreement: The TM has to sign an agreement with SHCIL to clear his trade in
the format prescribed by NSE/BSE and suitably modified by SHCIL. The
agreement has to be signed before the TM begins his trading. A copy of the
CM-TM agreement will be forwarded to NSCCL/BSE along with the
agreement the trading member should also submit :
o Board Resolution appointing SHCIL as clearing member
o Attested copy of Memorandum & Articles of Association
o Copy of SEBI registration certificate
 Consent: At the application stage, a TM must mention that Stock Holding
Corporation of India Ltd. (SHCIL) will clear his trades.
o Letter of consent from SHCIL can be obtained, which the TM

has to forward to BSE/NSE as the case may be.
 Application Form: An application form, provided by SHCIL, to be filled by

TM, giving details of addresses, phones, accounts etc. Approved e-mail
addresses should be mentioned in the application for receiving daily bills.
 MARGINS: Trading Members have to deposit margins with the Clearing
Member for the purpose of taking Exposure on the Exchange and for daily
settlement. At SHCIL, there are two components of
Margins i.e. initial margin (IM) for exposure and maintenance margin (MM) for
daily settlement.

Initial Margin(IM)
Minimum Rs. 10 lakh as initial margin (IM) in either of the following ways:
 Entire Rs. 10 lakh in cash OR

 Rs. 2 lakh in cash and Rs. 8 lakh as cash equivalent * OR
 Rs 2 lakh in cash, balance Rs. 8 lakh as a combination of cash
equivalent * and specified demat securities (subject to maximum of Rs.
5 lakh after valuation)
Note: The above proportion is valid for NSE. For BSE minimum cash requirements
are Rs.2.5 lakh. BSE Members can start trading with Rs 7.50 lakh(Rs.2.5 lakh in cash,
balance Rs. 5.00 lakhs as a combination of cash equivalent and specified demat
securities (subject to maximum of Rs. 2.50 lakhs after valuation)
Maintenance Margin (MM)
A trading member has to deposit a certain percentage of initial margin (IM) in cash
only towards his daily settlement of marked-to-market margins, premiums or any
other charges payable by the TM.
Initial Margin(IM) ** Maintenance Margin (MM)

More than or equal to Rs. 50 lakh 10% of initial margin in cash only ***
Less than Rs. 50 lakh 20% of initial margin in cash only
* Cash equivalent includes Bank guarantee, fixed deposit receipts or govt. securities
(As per J R Varma Committee report on derivatives)
** The specified initial margin range should be for a period of at least one continuous
month
** Subject to bank operating powers and banker’s certificate on credit limits for the
bank account
Reporting

SHCIL provides various reports relating to the trading and settlement of its clients on
its website .These reports can be downloaded by the client by using a unique PIN
number and password. The main reports that are provided are :
 Daily trades reports

 Marked-to-market profit/loss reports
 Collateral margin reports
 Account statements
 Outstanding position reports
 Span margins requirement report three times during the day based on the
parameters specified by the exchange
 Monthly ledger reports and any other relevant report required by a client is
also provided.
Non-resident Indian
Introduction
Over the years, SHCIL has grown to become a major player in the capital
market. With a network of more than 120 offices operating across the
country and franchisees operating abroad, SHCIL provides Depository
Participant and related services close to 0.7 million satisfied investors out
of which over 6000 are NRI Clientele.
SHCIL has a full fledged NRI cell operating specifically to cater needs pertaining to
Depository account opening and maintenance. NRI cell co-ordinates with prospective
NRI customers, collects and assists in obtaining the relevant documents and ensures
the Depository Account is opened hassle free. NRI Cell collects physical certificates
to be sent for demat and ensures that the certificates are in order and can be sent for
dematerialisation under the existing guidelines issued by the depositories. Instructions
for trade are accepted by fax on request by NRI Cell to ensure timely settlement of
trades. In this case later on the client needs to regularize by sending the original trade
delivery instruction. Any tariff and billing related query are addressed by NRI Cell. In

short NRI Cell is a single point contact for any matter relating to NRI Depository
operations.
Open account
Before you open your account….
 Ascertain your NRI Depository Account status as per guidelines issued by RBI
from time to time.
 In case of Joint Account, status of the first holder is reckoned for all purposes.
 If scrip is held by three holders of whom the first is a NRI and the other two or
residents, then the account falls under NRI category.
 Accounts have to be opened in the exact order in which the names appear on
the certificate. Holding pattern A B is not the same as B A.
Get your account opening form details right….
 All columns are filled in. Write NA wherever not applicable.

 Specify status as Non Repatriable (NRO) or repatriable (NRE). Status cannot
be changed once account is opened.
 Bank account details should be compulsorily provided along with 9 digit
MICR code
 Ensure that the account status and bank details are as below :
- If the status is NRE, bank details can be "NRE' or 'NRO'.
- If the status is NRO, bank details can be 'NRO' only.
 Copy of RBI approval is not mandatory and the standing instruction for
automatic credits may be marked as 'Y' without furnishing RBI approval.
However, the onus of reporting to RBI is on the client.
 Proof of identity by way of Copy of your Passport and Bank Account
attestation is compulsory.

 Initial the agreement on the front side and sign in the order of holders in the
backside of the agreement
 Where the account is being opened by POA(proof of address)
i. The POA shall sign at all places in lieu of the original holder(s).
However, the photographs will be those of the original holder(s) only.
ii. A certified true copy of the POA has to be provided with the account
opening form along with the signature and photograph of the POA.
iii. The account may be operated either by the original holder or by the
POA.
 Nomination
i. Nominee may be any person other than the account holders.

ii. Photograph of the nominee has to be affixed on the nomination form.
iii. The nominee must sign across the photograph and in the space
provided below.
iv. If the nominee is a minor, the guardian shall sign at all places where
the nominee is supposed to sign.
v. Photograph of the guardian also has to be affixed on the nomination
form.
Custodial
Introduction
Since its commencement in 1988 as the first dedicated Custodian in the

country, SHCIL has been providing Custodial Services of international
standards to Domestic Mutual Funds, Financial Institutions and Foreign
Institutional Investors.
With almost 70% of the Institutional business in its fold, SHCIL has evolved over the
times to meet the changing requirements of dynamic markets and demanding clients.

A dedicated pool of trained and highly experienced professionals work literally round
the clock on state of the art computer systems, dedicated communication channels,
well connected to Client institutions, Stock Exchanges, Clearing houses, Depositories
and leading Institutional brokers. In terms of collective man-years, SHCIL has the
most experienced team in the entire Industry.
Trade processing services
SHCIL has specially trained personnel handling thousands of trade instructions

involving large values on sophisticated systems using digital signature on STP
(Straight Through Processing) systems, ensuring smooth trade confirmations to Stock
Exchanges, reporting and resolution of mismatches with Clients, etc.
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, SHCIL
ensures prompt scrutiny, processing and lodgment of securities with the respective
Company/Registrar and Transfer Agent, with the objective of final transfer to the
purchaser, with objections handling if needed, thus facilitating delivery of securities to
the parties concerned on sale.
Physical custody services

The transferred physical securities, when received, are held in state-of-the-art, high-
security vaults on behalf of the clients. A pioneer in introducing the bar-coding system
to track certificates, SHCIL ensures the availability of each and every share certificate
at a moments notice.
Institutional DP 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.
SHCIL also provides special services like providing dematerialisation and corporate
action follow-up, saleable holding reports used by many fund managers, monitoring
of CP Redemptions, prepayments and providing customized reports like put/call
forecasts and non equity holding reports.
Corporate Actions, Primary markets and related services
The Corporate Actions team ensures timely collection of monetary and non-monetary
benefits on behalf of the client. It covers all activities relating to Corporate Actions
like calculation of entitlements, reconciling with companies/registrars prior to due
date, collection of monetary Corporate Actions from the premises of the
company/registrar and transfer of the same to clients. In case of any shortage, active
follow up is done with each company. Customized reporting to clients on the status of
Corporate Actions is done periodically.
This team is supported by a highly specialized ‘Databank’ team, which is unique to

SHCIL. This team tracks over 8500 Companies, over 12000 issued securities, 2500
Registrars, besides all relevant information available in all main stock Exchanges and
Depositories. The team ensures prompt availability of information on all Corporate

Announcements, ISIN listings etc to the Corporate Actions team. The Primary
Markets team takes care of applications on behalf of clients for primary market issues,
calculates the entitlements, follows up for allotment or refunds and sends customized
reports to clients.
Client relationship management
Every Institutional client is assigned to an experienced Manager with a dedicated team

whose sole task is in resolving special issues relating to the client. This team acts as a
single point contact for all Client matters. They also ensure standardized and highly
customized reports to clients at desired intervals.

Swot analysis
SWOT ANALYSIS
STRENGTHS:

1. Wide coverage throughout the country.

2. Promoted by 7 financial institutions.
3. Largest account holders
4. Largest custodian.
5. Catering to Indians as well as NRIs and FIIs.
6. One stop shop for all financial solutions.
7. Advanced system network.
8. SHCIL is the first depository participant. It has the opportunity of holding
more than 7000000 accounts at all centers.
9. Multiple products and services: SHCIL provides a variety of services under
the same roof.
10. It is the member of both NSDL and CDSL.
11. The company has highly computerized, state of art technology to facilitate the
business and minimize the risk from automated operations. .
12. Since the main business of the company is providing DP services, unlike the
service provided by banks it leads in specialization.
13. The variety of services offered has enabled SHCIL to have a much more
competitive edge about financial services than its competitors.
WEAKNESS
1. Lack of aggressive marketing.

2. Improper billings.
3. Expensive.(Because separate account has to be opened according to holdings).
4. Less investment in advertising.
5. The clients are not provided any incentives or motivations, which would
encourage them to make timely payment.
6. The company has not undertaken sufficient steps to create awareness among
the clients about SHCIL. The only procedure adopted is the Internet.
7. The HR department is placed in Mumbai. So the newly recruited employees
lack sufficient training facilities.

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
1. Increased cost as perceived by customers.
2. Fluctuating market conditions affect the business.
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.

Methodology
Methodology
Type of research Descriptive and Exploratory

research.
Sampling technique Non probability sampling.
Sampling size 50
Sample description Delhi stock exchange, ICICI,
IL&FS, UTI, SHCIL.
Instrumentation technique Interview, questionnaire
Sources of data collection Primary data was collected by
conducting Interview and secondary
data was collected from magazines,
books, and internet.
Software used for data analysis MS excel
It is a survey method. The questionnaire and interview schedule, personal interview

will be relied upon for gathering primary data. An aggregate of 40 respondents from
various Depository Participants responded to the questionnaire.
For the purpose of secondary data books, articles, reports, annual reports of the stock
exchanges, news papers, CD-ROM, Internet, Nifty, BSE, BGSE, are planned to be
used.

Analysis & Interpretation
ANALYSIS
I used a structured questionnaire for eliciting the required responses relating to

Depository Services at SHCIL.
50 respondents were approached for this purpose, out of which 40 respondents co-
operated with the researcher in filling the questionnaire.
The various responses were classified, and tabulated. A simple statistical analysis was
made by the researcher.

An attempt is made to present the analysis covering different aspects of Depository

Services at Stock Holding Corporation of India Limited.
1. Table showing the age group of respondents
Age (In years) Frequency %
20-30 8 20
30-40 12 30
40-50 16 40
50 & above 4 10
Total 40 100
Table No: 1
Graph showing age group of Depository Holders
45
Respondents
40 Graph No: 1
35
Analysis: From the above table we can see that the normal range of Depository
Holders age varies between 20-50 yrs, with the highest 40% falling between 40-60
30
followed by 30% falling between 30-40 and 20% between the age group 20-30 and
the lowest is 60 & above.
25
Inference: 40% of brokers and investors fall in the age group 40-60yrs.
20
2. Table showing the number of respondents investing in shares
15
10
5
Particulars Frequency %
Yes 32 80
No 8 20
Total 40 100
Table No: 2
Graph showing the Number of share holders
20
yes
no
80
Graph No: 2
Analysis: From the above Graph it can be analyzed that 80% of the respondents are
Stock Holders. Remaining 20% of the respondents are not.
Inference: 80% of the respondents are the stock holders.
3. Table showing the No. of years holding & trading in SHCIL.
Years Frequency %
0-5 16 40
5-10 12 30

10-15 8 20
15-20 4 10
Total 40 100
Table No: 3
Graph showing the No. of years the respondents holding and trading in SHCIL
40
35
30
Graph No: 3 25
Responde
20
Analysis: From the above it can be analyzed that the company has been grown well
nts
from past 5 to 10 yrs. 30% of the people are trading from 5-10 years & 40% from 0-5
years.
15
Inference: 40% of the Depository Holders are trading between 0-5 years.
10
4. Table showing how secure the securities in opting the demat.
Particulars Frequency Percentage 5

Excellent 24 60
Very Good 8 20 0
0-5yrs
Good 6 15
Average 2 5
Total 40 100
Table No: 4
Graph showing the degree of securities in Demat Account
60 60
50
40
30
Graph No: 4
Analysis: From the above table survey inferred that 60% of the Depository Holders
are giving their consent as excellent about Demat. That is the securities of the
20
shareholders in electronic form is more safe and secured. 20
10
Inference: Dematerialization plays a major role in providing safety and security to
the holders.
0
5. Table showing the most preferred DP Product
Particulars
Excellent
Frequency Percentage
Very
Broking/Internet 8 20
Trading
Mutual Funds 16 40
Government Bonds
Insurance
8
8
20
20
Good
Total 40 100

Table No: 5
Graph showing the most preferred DP Product
40 40
30
20 20
20 20
10
Broking/Interne
ernet Trading
Mutual Funds
Govt.Bonds
0
Insurance
t
Graph No: 5
Analysis: The above survey reveals that 40% of the holders are interested to invest
their savings in Mutual funds because they are less risky. The Government bonds,
Broking, & Insurance constitute the next preferred DP product.
Inference: Majority of 40% of holders are interested in Mutual Funds.
6. Table showing the source in which the information is available regarding

SHCIL
Particulars Frequency Percentage

Newspaper 4 10
Magazines 4 10
Word of mouth 16 40
Internet 16 40
Total 40 100

Table No: 6
Graph showing the source in which the information is available
10
10 Newspapers
40
Magazins
Word of mouth
Internet
40
Graph No: 6
Analysis: From the above survey it is revealed that the information about the SHCIL
is more effective through Internet and Word of mouth, i.e. the 40% from Internet &
40% from Word of mouth, 10% is followed by Newspapers & 10% by Magazines
Inference: Internet constitute the largest source of SHCIL related information..
7. Table showing the selection of stock exchange to traded by both

shareholders and brokers.

NSE 20 50
BSE 20 50
TOTAL 40 100
Table No: 7

Graph showing the selection of stock exchange to trade by the shareholders
50 50
50
40
30
20
10
0
BSE NSE
Graph No: 7
Analysis: From the above survey it is clearly inferred that 50% of shareholders are
using BSE for trading and also remaining 50% are trading in NSE.
Inference: Both NSE & BSE are equally preferred for trading purpose, accounting
for 50% each of the responses.
8. Table showing the attribute of services expected by the investor

Quality of Service 8 20
Market Updates 8 20
Returns Provided 12 30
Safety & Security 12 30
Total 40 100
Table No: 8
Graph showing the attribute of services influences the investors

30
25
20Graph No: 8
Analysis: From the above table it can be inferred that equal number of respondents
15
i.e. 30% each consider Returns and Safety as important attributes followed by other
attributes such as 20% each consider Quality of service and Market updates.
10
Inference: Safety & Security, Returns constitute the most preferred attributes.
5
9. Table showing areas of investment that most investors prefer in SHCIL
0
Particulars
Equity Shares
Frequency
16 Quality of Percentage
40 Market
Mutual Funds 12 30
Bonds
Others
8
4
Service 20
10
Updates
Total 40 100
Table No: 9
Graph showing areas of investment that the most investors prefer

40
40
35
30
30
25
20
20
15
10
10
5
0
Equity Mutual Bonds Others
Shares Funds
Graph No: 9
Analysis: Majority 40% of the investors are having the habit of investing in the
Equity shares, 30% of them have invested in Mutual funds and 20% are invested in
Bonds & 10% in others.
Inference: Equity shares are the best options for investment in which investors are
preferring it first.
10. Table showing whether SHCIL provide Tailor made services
Yes 16 40
No 24 60
Total 40 100
Table No: 10
Graph showing the Services provide are Tailor made or not

Graph No: 10
Analysis: From the above table we can analyze that 60% of the Depository holders
are not satisfied with the services. Out of 100 only 40% of investors are accepted as
Tailor made services.
Inference: From the above analysis we can infer that majority of investors will
expect better service.
11. Table showing through which SHCIL provides the Value-added services
to clients

Online transaction 16 40
updates
Faxes / E-mails 8 20
Portfolio updates 4 10
Daily updates (Website) 12 30
Total 40 100
Table No: 11

Graph showing the Value-added services provided by SHCIL
45 40
40
35
30
25 Graph No: 11 20
20
Analysis: From the above table we can analyze that the 40% of the respondents says
that the value-added services provided by SHCIL is through online transaction, 30%
15
by website, 20% E-mails, 10% portfolio updates.
10
Inference: Majority of the respondents accept that the value-added services are
5
through online transaction updates.
0
12. Table showing how satisfying is SHCIL in terms of Infrastructure & the
hardware, software installed for serving clients

Excellent 12 30
Very Good Online trans.
20 50 Faxes
Good 6 15
Average 2 Updates 5 mai
Total 40 100
Table No: 12

Graph showing how satisfying SHCIL is in terms of Infrastructure, software etc
50
50
40
30
Graph No: 12
30
Analysis: The above survey reveals that the Depository holders are satisfied in terms
of infrastructure and software with the result of 30% as excellent, 50% as Very good
followed by 15% as Good and 5% as Average.
20
Inference: Majority of the DP holders are satisfied.
13. Table showing how efficient & effective the DP services of SHCIL
compared to other financial institutions
Particulars 10 Frequency Percentage

Excellent 20 50
Very Good 16 40
Good 4 10
Average
Total 0 0
40
0
100
excellent Very Good

Table No: 13
Graph showing how efficient & effective the DP services of SHCIL compared to
other financial institutions

60
50
50
40
40 Graph No: 13
Analysis: From the above table it is analyzed that 50% of respondents are agreed as
30
excellent & more effective DP services in SHCIL when compare to other institution.
40% of respondents agreed as Very good, 10% as Good & 0% as average.
Inference: DP services of SHCIL is excellent when compare to other financial

institutions. 20
14. Table showing how satisfactory are the interest rates in terms of loan
10
against demat held in DP.
Yes
No
0 16
24
40
60
Total 40
Excellent 100
Very Go
Table No: 14
Graph showing the interest rates in terms of loan against demat.

Graph No: 14
Analysis: From the above table it is analyzed that 60% of respondents are not
satisfied with interest rates in terms of loan against demat.
Inference: Through the graph we can say that the interest rates are high.
60
15. Table showing how safe & secure the demat is

Yes 36 90
No 4 10
Total 40 100
Table No: 15
Graph showing how safe the demat is
Asia-Pacific Institute Of Management

10 92
Graph No: 15
Analysis: From the table it is analyzed that 90% of Depository holders are feeling
that demat is safe & secure, whereas only 10% are feeling unsatisfied.
Inference: Majority of respondents are safe with demat.
16. Table showing service charges charged by SHCIL.
High 24 60
Reasonable 16 40
Low 0 0
Total 40 100
Table No: 16
Graph showing service charges charged by SHCIL.

70
60
60
Graph No: 16
Analysis: From the above survey it has inferred that 60% of respondents are feeling
that the service charges charged by SHCIL is high, and 40% as reasonable, 0% as low.
Inference: Majority that is 60% of respondents are not satisfied with service charges.
17. Table showing how effective the SHCIL in settling the stock.
Fast 20 50
Slow 20 50
Total 40 100
Table No: 17
Graph showing how effective the SHCIL in settling the stock.
60
50
50
Graph No: 17
Analysis: From the above table it can be interred that 50% of the respondents are
telling fast in settling the stock & other 50% are telling slow in settling.
Inference: The respondents are equally responding for the effectiveness in settling
the stock.
18. Table showing how satisfactory is the on-line trading

Excellent 20 50
Very Good 8 20
Good 12 30
Average 0 0
Total 40 100
Table No: 18
Graph showing how satisfactory is the on-line trading
60
50
50
Graph No: 18
Analysis: The responses to the On-line trading ranges between ‘Good’ and
‘Excellent’, 100% of the respondents record their responses between ‘Good and
Excellent.
Inference: It is inferred that the number of respondents are very much satisfied with
the on-line trading in SHCIL.

Summary of Findings

FINDINGS
Based on the data analysis and interpretation, the following findings noted:
• 20% of the respondents, who are not stock holders are under the age group of
20-30 and 50 and above.
• Out of the entire DP holders 10% of them trading in 15-20 years, 20% are 10-
15 years, 30% are 5-10 years, 40% are 0-5years. This indicates the popularity
of the organization in the last 10 years, during which time 70% of the existing
members are trading from
• 0-5 years, whereas the previous 10 years the total percentage is only 30%.
This indicates a healthy trend form last 10 years.
• From the analysis part it shows the most preferred DP product is Mutual
Funds. It shows that the Interest of the investors would be funds which has
less risk and high returns. This is substantiated the fact that 40% of the
holders are interested to invest in Mutual Funds and other investments are
distributed as Bonds, Broking and Insurance.
• From the survey it is noted that the best method of spreading information
seems to be Internet, which draws the interest of investors better than any
other media.
• The survey indicates the trading is equally shared between BSE and NSE.
• The respondents gave equal interest to Safety and Security, Returns provided
and quality of service, only 10% as Market updates.
Therefore it is essential for the company to give more priority about
Safety and Security and returns.

• Though the Equity shares has got the highest risk, the investors are willing to
take risk by investing in Equity shares for higher returns since the SHCIL is
doing well.
• It is also noted that 60% of the investors expect Tailor-made services.
• It is noted from the survey the Value-added services provided by SHCIL is

through Online updates.
• The survey indicates majority of respondents are satisfied in terms of

Infrastructure, hardware and software installed for serving clients.
• The services provided by the SHCIL is better when compared to other

financial institutions.
• The investors feel that the Interest rates provided or charged by SHCIL is high
against demat held in DP.
• The survey indicates that the investors are more safe and secured from the
demat in SHCIL

Recommendations &
Conclusion

RECOMMENDATIONS
• Since the interest and web based communication is getting popular SHCIL
should update their website at least on a weekly basis so that the major
percentage of the remaining i.e. 20% can be brought in.
• Since Dematerialization plays a major role in influencing DP holders there

must be increased effort in promoting enhanced services involving security
and safety.
• To encourage the existing and prospective shareholders good returns must be

ensured in addition to security and safety.
• Since the Investors expect better service form SHCIL, it should provide value-
added services.
• It is necessary for the organization to sustain their primary position as compare

to other Financial Institutions as innovative and useful services.
• It is necessary to reduce the service charges charged by SHCIL
• It is also necessary to reduce the Interest rates on loans against demat.
• The online trading efforts must be made more scientific and effective.

Conclusion
On the whole, my project at SHCIL was worthwhile as I got the opportunity to learn a
lot about the capital market. 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 etc.
Working at SHCIL and preparing this project report was a learning experience and I
shall make immense use of it in my career.

ANNEXURE.1
BIBLIOGRAPHY
BOOKS:
AUTHOR TITLE OF THE PUBLISHER’S PLACE

OF
PUBLICATION BOOK NAME
GORDEN “Financial Markets and Himalaya Delhi

AND Services”
NATRAJ
AVADHANI “Investment and Securities Himalaya Delhi

Markets in India”
PRASSANNA “Financial Management” Tata McGraw Delhi

CHANDRA Hill
IM PANDEY Financial management Vikas Delhi
MAGAZINES:

• Dalal Street
• Business today
• Money
• Business India.
NEWS PAPERS:
• The Economic Times
• Business standard
• Outlook money
INTERNET / WEBSITE
www.google.com
www.online.stockholding.com
www.Sharekhan.com
www.businessweek.com

ANNEXURE.2
STUDY ON DESCRIPTIVE ANLYSIS OF THE DEPOSITORY

PARTICIPANTS
QUESTIONNAIRE
1. Name of the Respondent …………………………………….
2. Address and Phone No. ………………………………...........
3. Sex
Male Female
4. Occupation
5. Age Group (in years)

20-30 30-40
40.50 50-60
6. Are you a Share holder?
Yes No
7. Since how long are you holding and trading the securities in SHCIL?
0-5yrs 5-10yrs
10-15yrs 15-20yrs

8. How secure do you feel by opting your securities in demat form?
Excellent Very Good
Good Average
9. Which DP Product do you prefer?
• Broking/Internet trading
• MF Mobilization
• Government Bonds
• Insurance
10. Through which source do you avail information regarding SHCIL?
• Newspaper
• Magazines
• Word of mouth
• Internet
11. What is the most preferred area of avenues of investment?
• Mutual Funds
• Government Bonds
• Equity Shares
• Others Specify
12. Does SHCIL provide Tailor- made services?
Yes No

13. What are the attribute of services expected by the investor?
• Quality of Service
• Market Updates
• Returns Provided
• Safety and Security
14. The SHCIL provide Value-added services to client by
• Online transaction updates

• Faxes / E-mails
• Portfolio updates
• Daily updates
15. How satisfying is SHCIL in terms of Infrastructure and the hardware and
software installed for serving its clients?
Excellent Very Good
Good Average
16. How efficient and effective is the DP services of SHCIL when compared to other
financial institution?
Excellent Very Good
Good Average

17. The loan against demat shares held in the DP a/c with SHCIL is satisfactory in
terms of interest rates
Yes No
18. Do you think demat is safe and secure?
Yes No
19. The service charges charged by SHCIL?
High Reasonable Low
20. How often the stocks are settled?
Fast Slow
21. How satisfying is the On-line trading for you?
Excellent Very Good
Good Average

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PROJECT REPORT

STOCK HOLDING CORPORATION OF INDIA LIMITED

“A Descriptive Analysis of Depository Participant With

Reference to Stock Holding Corporation of India Ltd”

A project Report submitted towards the partial fulfillment of the requirements of

The two years full-time Post Graduate Diploma in Management.

Submitted by: Sunil Prabhakar

Post Graduate Diploma in Manager (Banking& Financial services)

ASIA-PACIFIC INSTITUTE OF MANAGEMENT

3 & 4, Institutional Area, Jasola, New Delhi-110025

I, Sunil Prabhakar studying in Asia Pacific Institute Of Management Delhi do hereby

Name of student: Sunil Prabhakar

Chapter I At a Glance 1-2

Chapter II Introduction 3-6

Chapter III Industry Profile 7-21

Chapter IV Company profile 22-27

Chapter V Products and Services 28-72

Chapter VI SWOT Analysis 73-75

Chapter VII Methodology 76-77

Chapter VIII Analysis & interpretation 78-96

Chapter IX Summary of findings 97-99

Recommendations & Conclusion 100-102

Serial Title Page

Asia-Pacific Institute Of Management 1

Asia-Pacific Institute Of Management 2

Asia-Pacific Institute Of Management 3

Asia-Pacific Institute Of Management 4

 Transfer of securities, change of beneficial ownership

No. of Depository in the country

Asia-Pacific Institute Of Management 5

 To ascertain SHCIL’s position in the competitive market.

Asia-Pacific Institute Of Management 6

Asia-Pacific Institute Of Management 7

Asia-Pacific Institute Of Management 8

Asia-Pacific Institute Of Management 9

Legal Framework of Depositories:

Eligibility Criteria For a Depository:

Any of the following may be a depository:

1. A public financial institution as defined in section 4a of the Companies Act Of

2. A bank included in the second schedule to the RBI Act, 1934.

3. A foreign bank operating in India with the approval of the RBI.

4. Recognized stock exchanges.

6. A custodian of securities approved by government of India.

7. A foreign financial services institutions approved by government of India.

Asia-Pacific Institute Of Management 10

Agreement between Depository and Issuers:

Rights and Obligations of Depositories:

2. Annual inspections of the procedures and same should be reported to SEBI.

3. To ensure that the integrity of automatic data processor systems is maintained to

4. Adequate measures including insurances, to protect the interests of the beneficial

One of the primary functions of depository is to eliminate or minimize the movement

Transfer and registration

Asia-Pacific Institute Of Management 11

A transfer is a legal change of ownership of a security in the records of the issuer.

Pledge and hypothecation

Linkages with clearing system

Eligibility Criteria For Depository Participant

 A public financial institution as defined in sections of the companies act.

Asia-Pacific Institute Of Management 12

 A foreign bank operating in India with the approval of RBI.

 A state financial corporation established under the provisions of section 3 of

 An institution engaged in providing financial services promoted jointly or

 A custodian of securities who has been granted a certificate of registration by