Demat Account

Demat Account SR.NO

PARTICULARS

1

Introduction

2

Aims & objectives

3

How to open a demat account?

4

Icicidirect.com: procedure, benefits & importance. Comparative analysis of various stock broking companies

5

6

Data interpretation and analysis

7

Findings and conclusion

8

Suggestions and recommendations

PAGE.NO

REMARKS

Demat Account Introduction

At the time of our grandfathers, you would have notice that they may have a black briefcase, filled with all the physical Share certificates and confidential documents, however, in the future, with the advent of new technologies, moved them to materialize all the documents in a portfolio, this is the simplest description of Demat account. Demat trading through the kind of e-portfolio, where you can keep all of their stocks and bonds. Demat account can be defined as, “The account in which shares and securities are held in dematerialized-form”. E-trading and Demat trading has transformed the capital market in India. With the help of Demat trading and trading account, purchase and sale of shares has become much faster and even process than trade through physical broker. Earlier if someone wants to invest in the stock market, he should contact the broker on the phone or meet him personally. But with the introduction of online trading, even common or small investor gets an opportunity to use the service at an affordable price that is much less than physical broker charged by phone. Internet commerce gave the customer real-time access to information on the accounts, stock quotes and interactive market research developed trade. It helps to get rid of the painstaking process of investing in the stock market.

Demat Account

Aims & Objectives India adopted the Demat System for electronic storing, wherein shares and securities are represented and maintained electronically, thus eliminating the troubles associated with paper shares. After the introduction of the depository system by the Depository Act of 1996, the process for sales, purchases and transfers of shares became significantly easier and most of the risks associated with paper certificates were mitigated. In 1996, trading began on NSE for shares held in demat account form. It was the beginning of a new paperless trading stock market trading environment. If an investor buys a share today, it gets credited to the investor's account in two days. Today, shares get transferred to the investor's demat account.

The following are the objectives:

 To assess the perception of traders about ICICI Securities Ltd in Navi Mumbai.  To determine the satisfaction levels of consumers with ICICI Securities Ltd in Navi Mumbai city.  To know the market share of ICICI Securities Ltd.  To know the mechanism in the De-mat.  To study the process of De-mat.  To know the advantages of the De-mat.  To compare ICICI Securities Ltd. With other broking firms in respect of brokerage and activation charges.

Demat Account

 To know about problems faced in trading by traders in Navi Mumbai City. How Open A Demat Account?

Opening a De-mat Account

To

Documents to be attached

Getting started 1. Choose a Depository Participant.(DP) 2. Fill up an account opening form provided by DP, and sign an agreement with DP in a standard format prescribed by the depository. 3. DP provides the investor with a copy of the agreement and schedule of charges for his future reference. 4. DP opens the account and provides

1. Passport size photographs 2. Proof of residence (POR) - Any one of Photo Ration Card with DOB / Photo Driving License with DOB / Passport copy / Electricity bill / Telephone bill 3. Proof of identity (POI) - Any one of Passport copy / Photo Driving License with DOB / Voters ID Card /

the investor with a unique account

PAN Card / Photo Ration Card with

number, also known as Beneficiary

DOB

Owner Identification Number (BO ID).

Fees involved for opening a Demat Account:

1. Account-opening fee 2. Annual maintenance fee 3. Custodian fee 4. Transaction fee

4. PAN card

Demat Account

Convenience of Opening a Icicidirect.Com Demat Account

The 3-in-1 trading account gives you the convenience of opening a trading, demat & bank account all in one go. Trade in Shares, Futures & Options; Currencies, invest in Mutual Funds, IPOs and Life Insurance through our seamless and secure 3-in-1 online trading account.

Demat Account

Demat Account

 Earn 4% interest on unutilized funds In a single platform, you can manage your online trading account as well as savings account. Hence, you keep on earning 4% interest on the allocated unutilized amount for trading.

 Tracking and Review Our Portfolio Tracker and Watch list along with SMS Alerts always keep you updated on the status of your investments, so that you can act on them when required.

 Wide range of products You can trade in shares both on NSE and BSE, Futures & Options, Currencies and invest in Mutual Funds, IPOs and Life Insurance through our online trading platform. Also avail leverage plans like - Margin, Margin PLUS.

 Innovative Features Our Valid Till Cancel (VTC) feature helps you execute a buy or sell order based on a price trigger set for a period of 45 days, therefore sparing you the effort of following the market on a daily basis.

 All inclusive Brokerage Our brokerage is all-inclusive and also includes the DP charges levied by Depositary Participant which is higher of 0.04% or 25 every time shares are debited from your Demat account. It is generally a common market practice to charge separately. NSDL / CDSL charges and other statutory charges are levied separately

 Accessibility on multiple platforms

Demat Account

You can access our online trading platform on the web, mobile, desktop or use our call and trade facility, so that you don’t miss out on any market opportunities.

 Investor Knowledge Center Our customer knowledge camps teach you about multiple investment options, how to build a portfolio, help define you investment goals and explain the various features of our online trading platform

 Advisory Services Our advice is categorized based on risk, return and time horizon of investments, with over 200 companies covered across multiple sectors we cover the depth and width of the market.

 Customer Service We are at your service with just a click. Our expert will call you for any assistance with respect to queries on your trading account at your convenience. You get access to a Dedicated Call Centre which is operational from morning 8:00 a.m. to evening 8:00 p.m.

Demat Account

COMPARATIVE ANALYSIS OF VARIOUS STOCK BROKING COMPANIES Online Broker

Brokerage for Delivery

Brokerage for Intraday trading

SHAREKHAN BROKERAGE CHARGES

0.03% - 0.50%

0.03% - 0.10%

MOTILAL OSWAL BROKERAGE CHARGES

0.30% - 0.50%

0.03% - 0.15%

ANGEL BROKING BROKERAGE CHARGES

0.50%

0.02% - 0.03%

ICICI DIRECT BROKERAGE CHARGES

0.75%

0.15%

INDIABULLS BROKERAGE CHARGES

0.25% - 0.50%

0.05% - 0.10%

HDFC SECURITIES BROKERAGE CHARGES

0.50%

0.15%

UTI SECURITIES BROKERAGE CHARGES

0.80%

0.15%

RELIGARE BROKERAGE CHARGES

0.20% - 0.30%

0.02% - 0.03%

0.50%

0.10%

INDIA INFO LINE BROKERAGE CHARGES

Demat Account

DATA INTERPRETATION AND ANALYSIS

1. Awareness about online tradingTable 1: Table showing awareness about online trading Options Yes No Total

% Of Responses 75% 25% 100

80% 70% 60% 50% 40% 30% 20% 10% 0% Yes

No

Fig 1: Graph Showing Awareness about online trading. Interpretation: With the increase in use of technology the awareness towards online share trading has increased a lot .The awareness is expected to increase further with the increase in internet education.

Demat Account

2. Problem faced by people regarding trading Table 2: Table showing problems faced by people regarding tradingOptions Lack of knowledge Unsatisfactory services Charges by the broking firm Total

% of Responses 50 30 20 100

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

Fig 2: Graph showing problems regarding trading among people. Interpretation: Most of the people are not having full knowledge about trading .This is the reason people are having their d-mat accounts but they don’t trade .Unsatisfactory services provided by the firms also creates problems to the clients.

Demat Account

3. Awareness about the products and services offered by ICICI Securities Ltd.

Table 3: Awareness of products and services offered by ICICI Securities Ltd. Options Yes No Total

% of Responses 40% 60% 100

60% 50% 40% 30% 20% 10% 0% Yes

No

Fig 3: Graph showing awareness about the products and services offered by ICICI Securities Ltd. Interpretation: Although ICICI is a big brand people are not aware about all the services provided by ICICI Securities Ltd. The company should concentrate towards promotional tools and focus on product awareness rather than brand awareness.

Demat Account

4. Reason for opening the Demat account

Table 4: Table showing reasons for opening demat account Options Someone suggested Have an interest in trading Total

% Of responses 60 40 100

60% 50% 40% 30% 20% 10% 0% Someone suggested

Have an interest in trading

Fig4: Graph showing the reasons for opening demat account Interpretation: It was observed that most of the people have opened their accounts on someone’s suggestion and there are only few people who actually have interest in trading and actually trades .Most of the clients were inactive.

Demat Account

5. Investment in share market by people.

Table5: Table showing percentage of investment in share market by people Options Yes No Total

% of Responses 35% 65% 100

70% 60% 50% 40% 30% 20% 10% 0% Yes

No

Fig5: Graph showing percentage of people investing in share market Interpretation: Most of the people do not invest in share market and the reasons are lack of proper knowledge and they think that it is more risky.

Demat Account

6. Frequency of trading

Table 6: Table showing frequency of trading Options Weekly Monthly Yearly Total

% of Responses 7% 23% 70% 100

70% 60% 50% 40% 30% 20% 10% 0% Weekly

Monthly

Yearly

Fig6. Graph showing frequency of trading Interpretation: Among the people who invest in share market very few are there who do regular investments and most of them do it very often.

Demat Account

7. Broking firm with which investment is done

Table7: Table showing Broking firm with which investment is done Options ICICI Securities Ltd. India Info line Angel Broking Others Total

%of Responses 25% 18% 12% 45% 100

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% ICICI Securities Ltd. India Info Line

Angel Broking

Fig7: Graph showing Broking firm with which investment is done. Interpretation: Many people are associated with Reliance Securities Ltd.

Others

Demat Account

8. Satisfaction with the Broking firm

Table8:Table showing satisfaction with the broking firm Options Satisfied Not satisfied Neither satisfied nor dissatisfied Total

% Of Responses 45% 30% 25% 100

45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

Fig8: Graph showing satisfaction with the broking firm Interpretation: Some people were satisfied and some were not satisfied by the services provided by the broking firms and wanted improvements in the services so that they can trade easily.

Demat Account

9. Perception regarding ICICI Securities Ltd.

Table9: Table showing perception regarding Reliance Securities Ltd. Options Good Average Bad Total

% Of Responses 65% 25% 10% 100

70% 60% 50% 40% 30% 20% 10% 0% Good

Average

Bad

Fig9: Graph showing perception regarding Reliance Securities Ltd. Interpretation: Except a few most of the people have good image about the company .The people not having good image had problems regarding services.

Demat Account

10. Improvements required by ICICI Securities Ltd. Table10: Table showing improvements required by ICICI Securities Ltd Options Customer service Products Technical improvement Relationship manager’s support Total

% Of Responses 40% 25% 20% 15% 100

40% 35% 30% 25% 20% 15% 10% 5% 0%

Fig10: Graph showing improvements required by ICICI Securities Ltd. Interpretation: ICICI securities need to improve their services so that more and more people invest through them .Many of the clients had the problems related to services.

Demat Account

FINDINGS AND CONCLUSION

ICICI Securities Ltd. Have a good image among the people of Navi Mumbai city and most of the people are having their trading accounts with ICICI Securities Ltd. The services provided by the firm are also satisfactory. The firm should focus on the people who are not trading inspite of having the accounts and they should provide full knowledge to their customers and the customers who are having issues related to services ,the services should be improved and their queries should be handled efficiently .At last all can be concluded that ICICI Securities Ltd. Is still a growing industry and it provides a security to the people having account with them by the special use of key

 Most of the traders find lack of knowledge and unsatisfactory services of    

broking firm as biggest problem in trading. Most of traders perceive ICICI Securities Ltd. as a good broking firm. The clients of Reliance Securities Ltd suggested that it should improve more in Customer services need an up gradation. People are aware about Reliance but not totally aware about the product and services

offered by it.  Due to more use of technology, more people are aware about online trading.

Demat Account

SUGGESTIONS AND RECOMMENDATIONS

While interacting with the people I found that most of the customers do not invest after opening their demat account .They are not aware about investing in securities market. So some suggestions are:



The brand image of ICICI Securities is good in market but according to customers the



company should focus on providing better services. They should focus on print and electronic media advertisement to make people more

 

about them. They should provide proper guidance to their customers about demat. They should provide offers and facilities to their customers to increase their



attractiveness about demat. Only demat accounts of those people should be opened who are really interested in



trading. ICICI Securities Ltd. should conduct some kind of mock classes for new Investors who even don’t know about share market. Refrences:

http://content.icicidirect.com/newsitecontent/Home/Home.asp http://www.angelbroking.com/ http://en.wikipedia.org/wiki/Demat_account http://www.scribd.com/doc/13020048/Depository-System

ANNEXURE

Demat Account

Personal Details 1. Name of the Respondent …………………………………………. 2. Occupation

………………………………………….

Thank you for your cooperation. QUESTIONNAIRE Q1.Are you aware about online trading ? a) Yes b) No Q2.What problems are related to trading? a) Lack of knowledge b) Unsatisfactory services c) Brokerage charges Q3.Are you aware about the products and services offered by ICICI Securities Ltd.? a) Yes b) No Q4.Why you opened the De-mat account? a) Someone suggested b) Have an interest in trading Q5.Do you invest in share market? a)Yes b) No Q6.How frequently you trade? a) Weekly b) Monthly c) Yearly Q7.Which Broking firm you investment? a) ICICI Securities Ltd. b) India Info line c) Angel Broking Ltd. Q8. Satisfaction with the Broking firm a) Satisfied b) Dissatisfied c) Neither satisfied nor dissatisfied

Demat Account

Q9.What is the perception regarding ICICI Securities Ltd.? a) Good b) Average c) Bad Q10.What improvements are required by ICICI Securities Ltd.? a) Customer service b) Products c) Technical improvement d) Relationship manager’s support

Demat Account

1. What is a demat account and why it is required? Shares and securities are held in dematerialized form in demat account. It is mandatory to have a demat account to carry out a transaction in stock exchange. Once an account is opened, you can buy shares by visiting a broker personally or online. 2. How to open a demat account? To open a demat account, you need to get in touch with a registered depository participant (DP). It is just like a bank or broker. You can get a list of registered DPs from NSDL or CDSL websites, then download or collect an account opening form from the registered DP’s office or website. It usually takes a week or two to open your account. It is important to add nominee while applying for demat account. You can open a demat account with banks. However, banks have an option of opening an account with any branch while some have a set of selected branches. 3. Are there any charges levied on demat account? Account opening charges vary from bank to bank. Some private banks such as HDFC Bank and Axis Bank do not charge account opening fee while others may charge. The fees are also refundable. Other types of fee charged are annual maintenance fee, custodian fee and transaction fee. 4. What is depository? A depository is an organization which holds securities like shares, debentures, bonds, government securities, mutual fund units etc. of investors in an electronic form. The securities are held at the request of the investors through a registered Depository Participant. The depository also provides services related to transactions in securities. 5. What is dematerialization? Dematerialization is the process by which physical certificates of an investor are converted to an equivalent number of securities in an electronic form and are credited into the beneficiary’s account with his DP. 6. Can multiple demat accounts be opened? Yes, you can open more than one account at the same name either with same or different Depository Participants (DP). An investor has to fill the KYC form every time he opens a new account. The KYC norms include Proof of Identity, Proof of Address requirements as stipulated by SEBI and PAN number. The investor has to show the original PAN card at the time of opening of demat account.

7. What is rematerialisation?

Demat Account

The process to convert shares back to the physical holding is called as rematerialisation. He needs to fill remat request form (RRF) and request his DP to rematerialize the shares in his account. 8. Can an investor operate a joint account? No, an investor cannot operate a joint account on ‘either or survivor’ basis like a normal bank account. But if the beneficial owner authorises any person to operate his account by executing a power of attorney and submitting it to the DP, that person can operate the account on behalf of the beneficial owner. 9. Is there any rule to keep minimum balance of securities in demat account? No, there is no such rule to keep any minimum balance in demat account 10. Who is the registered depository in India? Depository registered with SEBI are called as registered depository and currently there are two registered depositories - National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL). 11. What are the benefits of dematerializing securities? There are various benefits of dematerializing securities such as a) It is a convenient and safe to hold securities in demat form b) Smooth and immediate transfer of securities c) You don’t need to pay any stamp duty on transfer of securities d) Minimizes your paper work e) Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc. f) There is no odd lot problem (you can even trade single share) g) Reduction in transaction cost 12. What are the KYC norms to open a demat account? KYC (Know Your Customer) is a customer identification process, which is done to prevent any criminal activity. SEBI has made it mandatory to fulfill the KYC norms in order to open a demat account. These norms include a) Proof of identity: PAN card with photograph, voter id card, passport, Aadhar card b) Proof of address: This includes your ration card/ passport/bank account statement, driving license, utility bills like electricity bill, telephone bill. (PAN card is compulsory) c) You need to give your bank account number to open a DP account.