PROJECT REPORT ON
Submitted to IIeBM in the partial fulfillment of the requirement for degree of Master of e-Business Management (Finance)
Name –Raju Goyal International Institute of e-Business Management Roll Number –2008/MeBA/07/098
MOHALI Year -2009
PREFACE The successful completion of this project was a unique experience for me because by visiting many place and interacting various person, I achieved a better knowledge about sales. The experience which I gained by doing this project was essential at this turning point of my career this project is being submitted which content detailed analysis of the research under taken by me. The research provides an opportunity to the student to devote his/her skills knowledge and competencies required during the technical session. The research is on the topic “Angel Broking Demat Account”
Acknowledgement It was a great opportunity for me to work with Angel Broking Ltd., pioneers in the field of Finance Industry. I am extremely grateful to all those who have shared their expertise and knowledge with me and without whom the completion of this project would have been virtually impossible.
Firstly, I would like to thank our Company Guide Mr. Aditya Parmar, Training Manager who has been a constant source of inspiration for me during the completion of this project. He gave me invaluable inputs during my endeavor to complete this project.
I am also extremely grateful to Mr. Aditya Parmar, Training Manager, to have given me this opportunity to work with him and gain valuable insights.
I am indebted to all staff of Angel Broking Ltd for their valuable support and cooperation during the entire tenure of this project. Not to forget, all those who have kept my spirits surging and helped delivering my best.
I thank my faculty guide Mr./Ms. Harbajan Singh who helped me out at every critical situation that I faced in my project and gave me his valuable advice to solve problems.
I want to give my special thanks to all members of IIeBM, for providing me opportunity to work on this project with this great organization.
At last I would like to thank all the respondents met in the preparation, who gave their valuable time to provide us required information and their honest support to complete our project in time.
RAJU GOYAL ROLL NO. -2008/MeBA/07/ 098
CERTIFICATE OF COMPLETION
This is certify that the Final Project report entitled “Demat Account” submitted Summer training report of the requirement for the degree of MeBA, is a work carried out by RAJU GOYAL, Roll No. – 2008/MeBA/07/098 under my supervision and guidance.
Project Guide: (_______________________)
DECLARATION To The Director, International Institute of e-Business Management, Phase-1, Mohali. 5|Page
Respected Sir, I hereby declare that the Summer Training Report, which is entitled “Demat Account”, is compiled and submitted by me is my original frame work. The Procedure in the report is based on the Standards provided in ISO 9001. I have not copied the data from any previous report. However, my Project Guide Respected Mr. Aditya Parmar helped me at various points while preparing this report.
MR. RAJU GOYAL
Training and development is the essential job of human resources department of every organization. It is necessary to help employees in dealing with the changes caused by the changing business environment. I, RAJU GOYAL had done my project in ANGEL BROKING LTD. which is a leading company in finance industry. The main objective of my project was to “Demat Account”. The training design included departments, and their training needs, month of training, sequence of training and methods of training. A proper matrix was formed differently for each level highlighting the requirements to be trained. It also includes different skills workshop including the contents, objectives of the skills imparted to the employees. Most important in training process are the ice breakers and games which help the trainees in feeling relaxed and refreshed.
Each level in organization was considered as separate entity and training procedure for them was also different.
TABLE OF CONTENTS FOR PROJECT REPORT
Discussion on Training
Demat Account of Angel Broking
Buying and Selling
Need for the study
Data Analysis and Interpretation
Observation and Finding
Summary and Conclusion
ANNEXURE (contains questionnaire)
Introduction Angel Broking's tryst with excellence in customer relations began in 1987. Today, Angel has emerged as one of the most respected Stock-Broking and Wealth Management Companies in India. With its unique retail-focused stock trading business model, Angel is committed to providing ‘Real Value for Money’ to all its clients. The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX & MCX. Angel is also registered as a Depository Participant with CDSL. FSWA is into FINANCIAL PLANNING which involves selling of financial products like D-mat account, corporate FD’s, mutual funds and insurance. Angel Broking ltd – Transacting and investing simplified. Get ready to change the way you transact and invest in financial products and services. Whether you wish to transact in equity, equity & commodity derivatives, prefer to invest in mutual funds, life & general insurance products or avail money transfer and money changing services, you can do it all through reliance money. Simply open a Angel demat account and enjoy the convenience of handling all your key financial transactions through this one window.
In my project I explain in brief about the company, about financial planning, about Demat Account, and almost all the things that I have learned so that others can also read and learn from my experience.
Angel Broking House Limited
COMPANY BACKGROUND Philosophy of the Company
Angel broking ltd. already has a presence in India through company Law, incorporated on December, 1997. It offers world-class financial planning and a wide range of wealth management products to mass affluent and affluent customer segments. Angel Broking limited provides a complete range of financial products and services that include equity broking (internet based online trading as well as offline trading), financial planning, insurance, investment products, equity research, demat account and more. Angel Broking Limited is one of the leading and professionally managed stock broking firm involved in quality services and research. Angel Broking Limited is a corporate member of The Stock Exchange, Mumbai. The membership of the company with The Stock Exchange Mumbai was originally in the name of Mukesh R. Gandhi, which was eventually turned into a corporate membership in the name of Angel Broking Limited. Angel Broking Limited is managed by Mr. Dinesh Thakkar and he is well 10 | P a g e
supported by Mr. Mukesh Gandhi, a fifteen years veteran in the market. The group is well supported by a professional and qualified research team and efficient operations and back office team, which comprises of highly dedicated and qualified individuals. Angel has an in-house, state of art research department. Angel believes in reaching out to the customer at the farthest end rather than by reaching out to them. The company in its endeavour to give its client the best has opened up several branches all over Mumbai, which are efficiently integrated with the Head Office. Angel Broking Limited is primarily into retail stock broking, with a customer base of retail investors, which has been increasing at a compounded growth rate of 100% every year. The company has huge network sub-brokers in Mumbai and other places outside Mumbai, registered with SEBI, who act as Chanel partners for the company. The company presently has total staff strength of around 150 employees who are spread accordingly across the head office and all the branches. Angel has empowered its physical presence throughout India through various strategies which it has been adopting efficiently and effectively over a period of time, like opening up of branches at various places, tie-ups with various agencies and sales agents, buy-outs of smaller regional outfits and appointment of subbrokers and franchisees. Moreover Angel has been tapping and including high networth and self-employed individuals it its vast array of clients. Angel has always strived in the direction of delivering ultimate client satisfaction and developing stronger bonds with its customers and chose partners. Angel has a vision to introduce new and innovative products and services regularly. Moreover Angel has been one among the pioneers to introduce the latest technological innovations and integrate it efficiently within its business.
Mission: To create long term value by empowering individual investors through superior financial services supported by culture based on highest level of teamwork, efficiency and integrity. 11 | P a g e
VISION: • To provide best value for money to investors through innovative products. • Trading/Investments Strategies • State of the art technology and personalized service.
Customer Promise They are passionate about their customers' success and promise to deliver exceptional service with every meeting, interaction and dealing. They strive to offer simple, straightforward, friendly and trustworthy service. They are a financial company with a different attitude.
ANGEL DEALING IN
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Awarded with 'Broking House with Largest Distribution Network' and 'Best May, 2009 Retail Broking House' at Dun & Bred street Equity Broking Awards 2009 August, 2008
Crossed 500000 trading accounts
November, ‘Major Volume Driver’ for 2007 2007 March, 2007
Crossed 200000 trading accounts
December, Created 2500 business associates 2006 October, 2006
‘Major Volume Driver’ award for 2006
September Launched Mutual Fund and IPO , 2006 business July, 2006 13 | P a g e
Launched the PMS function
Crossed 100000 trading accounts
‘Major Volume Driver’ award for 2005
September Launched Online Trading Platform , 2004 April, 2004 Initiated Commodities Broking division April, 2003 First published research report November, Angel’s first investor seminar 2002 March, 2002
Developed web-enabled back office software
November, Angel Capital and Debt Market Ltd. 1998 incorporated December, Angel Broking Ltd. incorporated 1997
Angel Broking House Board of Director Mr. Dinesh Thakkar Founder Chairman & Managing Director
The Angel Group of Companies was brought to life by Mr. Dinesh Thakkar. He ventured into stock trading with an intention to raise capital for his own independent enterprise. However, he recognised the opportunity offered by the stock market to serve individual investors. Thus India’s first retail-focused stock-broking house was established in 1987. Under his leadership, Angel became the first broking house to embrace new technology for faster, more 14 | P a g e
effective and affordable services to retail investors. Mr. Thakkar is valued for his understanding of the economy and the stock-market. The print and electronic media often seek his views on the market trend as well as investment strategies.
Mr. Lalit Thakkar Director – Research
Mr. Lalit Thakkar is the motivating force behind Angel’s highly acclaimed Research team. He’s been a part of the senior management team since the Angel Group’s inception. His technical and fundamental outlook has provided impetus to Angel’s market research team. Research-based & personalized advisory services are Angel’s forte, and Mr. Lalit Thakkar has undoubtedly been the brain behind it. When it comes to analyzing the market, Mr. Lalit Thakkar is truly a genius. His hands-on experience and fundamental knowledge of the market can predict the market trend early. His views on the market trend are often quoted in the print and electronic media.
Mr. Amit Majumdar Chief Strategy Officer
A chartered Accountant by qualification, Mr. Amit Majumdar is a key member of Angel’s strategic decision-making process. He has been with the group since August 2004. He has handled several functions of the group like finance and operations, to name a few. He has rich experience in finance, investment banking, treasury, consultancy and advisory services. Mr. Majumdar has led many successful initiatives for the group. Before joining the Angel Group, Mr. Majumdar has been associated with Rabo India Finance, Ambit Corporate Finance and Ernst & Young.
Mr. Rajiv Phadke Executive Director – HR & Corp. communications
Mr. Rajiv Phadke has actively contributed to the Group’s growth over the last four years. Holding a major in Finance, Mr. Rajiv Phadke is a strategic thinker with expertise in the field of corporate planning, international marketing, financial services, brand-building, HRD and quality management. 15 | P a g e
With over 32 years of experience, Mr. Phadke has successfully led SBUs and financial companies from concept to commissioning. His career horizon spans Motilal Oswal Securities, Times Guaranty Financials, Nagarjuna Securities and Tata Exports Ltd. He is also a well-known speaker in the HR and business development circuit and his views are featured on various electronic media as well.
Mr. Vinay Agrawal Executive Director – Equity Broking
Mr. Vinay Agrawal leads the Equity Broking business at Angel, which comprises Business Development, Operations, Product Development and Ebroking initiative. He is actively involved in exploring new ways to adopt technology for business enhancement. A Chartered Accountant by qualification, Mr. Agrawal began his career with the Angel Group as Finance and Operations Consultant, and since then he’s quickly climbed up the corporate ladder.
Mr. Nikhil Daxini Executive Director - Sales and Marketing
With an MBA in finance, Mr. Nikhil Daxini has been instrumental in introducing the concept of professional marketing of broking services at Angel. His area of focus is Business Development, Risk Management and Operations. Mr. Daxini has immense experience in the marketing of financial products and services. He has been associated with HDFC Bank Ltd. in the past.
Mr. Hitungshu Debnath Executive Director - Distribution & Wealth Management
A marketing professional and a British Chevening scholar from the London School of Economics, Mr. Hitungshu Debnath leads the Distribution and Wealth Management business at the Angel Group. It includes the distribution of Insurance, mutual funds, IPOs, personal loans and other wealth management products. 16 | P a g e
Mr. Debnath has over 18 years of industry experience. He has been associated with Times Guaranty Financial Ltd., Fortress Financial Services Ltd., Alliance Capital Asset Management and HDFC Asset Management Ltd. in the past.
Mr. Mudit Kulshreshtha Executive Intelligence & Analytics
Mr. Mudit Kulshreshtha heads the advance analytics and strategic business intelligence division at Angel. With a Bachelor’s degree in Engineering and PhD in Economics, Mr. Mudit Kulshreshtha has more than 12 years experience in the field of strategy and business consulting. He has been associated with reputed consulting firms like Deloitte Consulting India, Ernst and Young, Arthur Andersen and WNS Global. He has advised several big clients in the U.S. and U.K. He is also a known speaker at public seminars and conferences organized by CII, NASSCOM, Indian School of Business and IIT.
Mr. Santanu Syam Executive Director - Operations
Mr. Syam brings with him over 18 years of experience in the field of Transaction Banking, Wholesale Banking, Treasury Banking, Consumer Banking and CBS. He started his career with ANZ Grind lays Bank and he was also associated with Standard Chartered Bank in India as Director Transactional Banking. Mr. Syam followed up his Engineering degree with an MBA. He has also attended Banking & Technology seminars organized by SCB Singapore, BSE India & Euro Finance.
Mr. Ketan Shah Associate Director - Information Technology
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IT is a strategic function at Angel. And Mr. Ketan Shah is involved in the designing of Angel’s IT policies and Strategies. Mr. Shah leads all IT-related activities from planning and budgeting to implementation and maintenance. Mr. Shah has over 18 years of industry experience. He has been involved in various aspects of Business Operations in his previous assignments.
Ms. Pinky Kothari Associate Director - Sales And Marketing
Ms. Pinky Kothari is responsible for development and expansion of the Angel Group’s business in Southern India. She started her career at Angel as Business Development Executive. She was then appointed the head of Surat Branch and the South Gujarat region, before assuming the role of Associate Director. A qualified Company Secretary and an MBA in Finance, Ms. Kothari has vast experience in business development in the financial services industry.
Mr. Naveen 18 | P a g e
A CFA of 1997, Mr. Mathur holds a Post Graduation degree in Financial Management and Business Finance. He brings with him over 14 years of experience in the financial markets He had been associated with Religare Commodities, Karvy Consultants and with BLB Ltd in the past. He has been involved in several management activities, treasury operations, corporate and strategic planning, and research activities in Futures and Options markets in his past assignments. Mr. Mathur is a regular speaker on all the prominent financial news channels.
Co-operative and Experienced Branch Managers
Low awareness due to lack of advertisement.
Lack of loyal clientage
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Increased spending power
Changing Mindset of Customers
Stiff competition from existing players in the market
WHAT DOES ANGEL BROKING LTD. OFFERS 1. Personalized Service Company believes in providing personalized service and individual attention to each client to ensure that we understand their goals and help them achieve it.
2. Professional Advice Company offers expert advice on equity and debt portfolios with an objective to provide consistent long-term return while taking calculated market risks. Companies approach helps clients build a proper mix of products, and not concentrate on just one individual product. Hence, serving long-term objectives in the best way.
3. Long-term Relationship Company believes that long-term vision is the only means to steady wealth creation. However to achieve this one also needs to take advantage of short-term market opportunities while not losing sight of long-term objectives. Hence it partners all its clients in realizing their long-term vision. 20 | P a g e
4. Access to Research Reports Company provides the clients with access to the expert opinion of economists and analysts.
5. Transparency and Confidentiality Companies clients receive regular portfolio statements from relationship managers via email.
DISCUSSION ON TRAINING Student’s work profile(role and responsibilities) I worked there with ANGEL BROKING LTD. with a profile of sales trainee. This profile offers me to understand the need of customer and provide them the best deal possible with maximization of the profit, both for the company as well as for the customer. The most important aspect for the role of trainee is trust. So far fulfillment of the targets one needs to: • Capitalize on the old and loyal clientage which can be building slowly by advising people in the best possible way. • Generating new leads through various activities. Generation of leads Since I was new in the field so I had to start from scratch and generate new leads to sustain in the market. Cold calling is one of the trusted ways of getting to the customers without meeting them. Although the rate of conversion remained very less, for cold calling the quality and 21 | P a g e
accent remains a very important criterion. this activity give me mixed result. I often got success and generated many leads through it but it also landed me in awkward position where the customer were in different mood and made us hear words for which a marketer should be always prepared to hear. Corporate calls always remained more difficult to crack with respect to retail sector. The corporate were the most difficult and most temping to get the business from. It took me one one day to crack Hi-tech Gears. At ANGEL BROKING LTD. after getting the product knowledge in the first week at the branch I was also allotted distributor to work with. In the initial phase I was accompanied by more experienced staff. After I became known to the market and procedure I started attending calls alone only. After the third week my performance also improved and I was able to get close to the targets, though it looked difficult to achieve in the beginning. To get awareness of the every product I attended diversified calls. This helped me to implement cross selling to get better results.
LIMITATIONS: 1. Cold Calling •
Voice and accent plays a major role.
The right time to call a customer cannot be decided, as the customer may in a
different mood at the time of calling. •
Less success rate
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2. Corporate •
Contacts with higher authorities play a major role
Description of live experience I was supposed to use the database provided by the company to make cold calls or by directly meeting people to get new leads. While making cold calls, we need to have: •
Good Communication Skills (Voice quality is clear and articulate)
Persistent and able to bounce back from rejection
Good organizational skills.
Ability to project a telephone personality (Enthusiasm, friendliness)
Flexibility: can adapt to different types of clients and new situations.
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Using a good database is very essential. “Eighty percent of our business comes from 20 percent of our customers" is a frequent statement at any sales convention. There's hardly a sales executive who is not aware of the 80/20 rule”.
While talking to customers, I analyze their needs. Whether they want to go for investment purpose or insurance or both. Suggest them the plan that best suits them. If they agree to it then either we send across the agents to close the deal or close it themselves.
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Problems faced while selling products: •
Customer dissatisfied with the services.
People fear that Angel Broking Being a Private company and a new entrant may
be able to sustain or not. •
Past experience, word of mouth.
Misguidance by agents.
People do not want insurance products.
Lack of knowledge and less awareness about demat account.
People risk appetite is very low, so they are afraid of mutual fund as well.
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“Success is a journey, not a
destination’’ ANGEL DEMAT ACCOUNTS Overview of Demat Account Demat account allows you to buy, sell and transact shares without the endless paperwork and delays. It is also safe, secure and convenient. In India, a demat account, the abbreviation for dematerialized account, is a type of banking account which dematerializes paper-based physical stock shares. The dematerialized account is used to avoid holding physical shares: the shares are bought and sold through a stock broker. This account is popular in India. The Securities and Exchange Board of India (SEBI) mandates a demat account for share trading above 500 shares. As of April 2006, it became mandatory that any person holding a demat account should possess a Permanent Account Number (PAN), and the deadline for submission of PAN details to the depository lapsed on January 2007.
Is a demat account a must? 26 | P a g e
Now a day, practically all trades have to be settled in dematerialized form. Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of up to 500 shares to be settled in physical form, nobody wants physical shares any more. So a demat account is a must for trading and investing.
Why demat? The demat account reduces brokerage charges, makes pledging/hypothecation of shares easier, enables quick ownership of securities on settlement resulting in increased liquidity, avoids confusion in the ownership title of securities, and provides easy receipt of public issue allotments. It also helps you avoid bad deliveries caused by signature mismatch, postal delays and loss of certificates in transit. Further, it eliminates risks associated with forgery, counterfeiting and loss due to fire, theft or mutilation. Demat account holders can also avoid stamp duty (as against 0.5 per cent payable on physical shares), avoid filling up of transfer deeds, and obtain quick receipt of such benefits as stock splits and bonuses.
Steps involved in opening a demat account First an investor has to approach a DP and fill up an account opening form. The account opening form must be supported by copies of any one of the approved documents to serve as proof of identity (POI) and proof of address (POA) as specified by SEBI. Besides, production of PAN card in original at the time of opening of account has been made mandatory effective from April 01, 2006. All applicants should carry original documents for verification by an authorized official of the depository participant, under his signature. Further, the investor has to sign an agreement with DP in a depository prescribed standard format, which details rights and duties of investor and DP. DP should provide the investor with a copy of the agreement and schedule of charges for their future reference. The DP will open the account in the system and give an account number, which is also called BO ID (Beneficiary Owner Identification number). The DP may revise the charges by giving 30 days notice in advance. SEBI has rationalized the cost structure for dematerialization by removing account opening 27 | P a g e
charges, transaction charges for credit of securities, and custody charges vide circular dated January 28, 2005. Further, SEBI has vide circular dated November 09, 2005 advised that with effect from January 09, 2006, no charges shall be levied by a depository on DP and consequently, by a DP on a Beneficiary Owner (BO) when a BO transfers all the securities lying in his account to another branch of the same DP or to another DP of the same depository or another depository, provided the BO Account/s at transferee DP and at transferor DP are one and the same, i.e. identical in all respects. In case the BO Account at transferor DP is a joint account, the BO Account at transferee DP should also be a joint account in the same sequence of ownership.
Rights 1. You can open more than one depository account in the same name with single DP/ multiple DPs. 2. No minimum balance is required to be maintained in a depository account. 3. You can give a onetime standing instruction to your DP to receive all the
credits coming to your depository account automatically.
Procedure 1. Fill account opening form (available with your DP). 2. Give your DP the duly filled account opening form with introduction documents as may be required. 3. Sign agreement with DP (agreement will state rights & obligations of both parties). The agreement will contain the fee structure of your DP. Your DP would give you a copy of this signed agreement for your record. 4. DP would give you Client Id no. (Account no.) Once your depository account
is opened. This Client Id no. along with your DP Id no. Forms a unique combination. Both these nos. should be quoted in all your future correspondence with DP/NSDL / Issuing Company/their registrar & transfer (R&T) agent. 28 | P a g e
5. Your DP would give you pre-printed instruction slips for depository services
viz., dematerialization, delivery instruction for trades, etc..Preserve these carefully. 6. Your DP would give you a list of deadlines for giving instructions for various
depository activities viz., transfer for effecting sale, purchase etc.. If not, check with the DP.
Required Documents The extent of documentation required to open a demat Account may vary according to your relationship with the institution. If you plan to open a demat account with a bank, a savings account holder has an edge over the non-account holder. In fact, banks usually offer additional incentives to customers who open a demat account with them. Along with the application form, your photographs (with co-applicants) and proof of identity/residence/date of birth have to be submitted. The DPs also ask for a DPclient agreement to be executed on non-judicial stamp paper. Here is a broad list (you won’t need all of them though): • PAN card • A canceled check, • Voter’s ID • Passport • Ration card • Driver’s license • Photo credit card • Employee ID card • Bank attestation • IT returns • Electricity/ Landline phone bill
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While they only ask for photocopies of the documents, they will need the originals for verification. You will have to submit a passport size photograph on which you sign across.
Procedure 1. Fill account opening form (available with your DP). 2. Give your DP the duly filled account opening form with introduction documents as may be required. 3. Sign agreement with DP (agreement will state rights & obligations of both parties). The agreement will contain the fee structure of your DP. Your DP would give you a copy of this signed agreement for your record. 4. DP would give you Client Id no. (Account no.) once your depository account
is opened. This Client Id no. along with your DP Id no. forms a unique combination. Both these nos. should be quoted in all your future correspondence with DP/NSDL / Issuing Company/their registrar & transfer (R&T) agent. 5. Your DP would give you pre-printed instruction slips for depository services
viz., dematerialization, delivery instruction for trades, etc..Preserve these carefully. 6. Your DP would give you a list of deadlines for giving instructions for various depository activities viz., transfer for effecting sale, purchase,etc.. If not, check with the DP.
Angel Demat Account Services Angel Broking – Transacting and investing simplified. Get ready to change the way you transact and invest in financial products and services. Whether you wish to transact in equity, equity & commodity derivatives, IPO’s offshore investments or prefer to invest in mutual funds, life & general insurance products or avail money transfer and money changing services, you can do it all through Angel. Simply open a Angel account and enjoy the convenience of handling all your key financial transactions through this one window.
Benefits of having an Angel account. 30 | P a g e
• It’s cost effective You pay comparatively lower transaction fees. As an Introductory offer, we invite you to pay a flat fee of just Rs. 750/- and transact through Angel.
• Its offers single – Through Angel’s associates, you can transact in equity, equity and commodities derivatives, offshore investments mutual funds, IPO’s life insurance, general insurance, money transfer, money changing and credit cards, amongst others.
• Its convenient You can access Angel’s services through •The internet •Transaction kiosks •The phone (call & transact) •Our all – India network of associates on an assisted trade.
• Its Safe your
account is safeguarded with a unique security number that changes every 32 seconds. This number works as a dynamics password to keep your account extra safe.
It provide you value- added services at www.angelbroking.com, you get 31 | P a g e
• Reliable research, including views of external experts with an enviable track record • Live news updates from Reuters and Dow Jones • CEO’s / expert views on the economy and financial markets • Tools that help you plan your investments, tax, retirement, etc. in the personal finance section • Risk Analyzer for analysis of your risk profile • Asset allocators to build an appropriate investment portfolio • Innovative use of technology for facilitating
The benefits:Benefits of Demat Account • A safe and convenient way to hold securities; • Immediate transfer of securities; • No stamp duty on transfer of securities; • Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc.; • Reduction in paperwork involved in transfer of securities; • Reduction in transaction cost; • No odd lot problem, even one share can be sold; • Nomination facility;
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• Change in address recorded with DP gets registered with all companies in which investor holds securities electronically eliminating the need to correspond with each of them separately; • Transmission of securities is done by DP eliminating Correspondence with companies; • Automatic credit into demat account of shares, arising out of bonus/split/consolidation/merger etc. • Holding investments in equity and debt instruments in a single account.
Benefit For Investors Demat account has become a necessity for all categories of investors for the following reasons/ benefits: • SEBI has made it compulsory for trades in almost all scrip’s to be settled in Demat mode. Although, trades up to 500 shares can be settled in physical form, physical settlement is virtually not taking place for the apprehension of bad delivery on • account of mismatch of signatures, forgery of signatures, fake certificates, etc. • It is a safe and convenient way to hold securities compared to holding securities in physical form.. • No stamp duty is levied on transfer of securities held in Demat form. • Instantaneous transfer of securities enhances liquidity. 33 | P a g e
• It eliminates delays, thefts, interceptions and subsequent misuse of certificates. • Change of name, address, registration of power of attorney, deletion of deceased's name, etc. - can be affected across companies by one single instruction to the DP. • Each share is a market lot for the purpose of transactions - so no odd lot problem. Any number of securities can be transferred/delivered with one delivery order. Therefore, paperwork and signing of multiple transfer forms is done away with. It facilitates taking advances against securities on low margin/low interest.
Points To Remember 1. You may choose your DP based on your evaluation of their reputation, service standards, charges, other conveniences, etc. 2. Open depository account with the same holding pattern as there on existing
physical securities. You will need to open separate accounts for every different combination of holding pattern. Eg.: If 100 securities of company ABC & 200 securities of company PQR are registered in the name of X as first holder & Y as second holder, one account in name of X as first holder & Y as second holder is sufficient. Whereas, if 100 securities of company ABC are registered in the name of X as first holder & Y as second holder & 200 securities of company PQR are registered in the name of Y as first holder & X as second holder, you will need to open two accounts, one in the name of X as first holder & Y as second holder and the second in the name of Y as first holder and X as second holder. 3. Account opening procedure should typically take 2-5 days. 4. In case of holdings of a partnership firm, the account should be opened in the name of the partner(s).
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5. In case of holdings of a HUF, the account should be opened in the name of the Karta. 6. In case of a minor, the depository account should be opened in the name of the
minor and the guardian’s name should be mentioned. The guardian will sign as signatory on behalf of the minor. For selling the securities of the minor, a court order should be obtained. 7. In case of any difficulties, contact your DP. 8. Only securities admitted by NSDL can be dematerialized. The list is available with your DP. 9. Only securities registered in the name of the account holder can be dematerialized. 10.Dematerialization is normally completed within 15 days after the share certificates have reached the issuer/their R&T Agent. Thus it may take you a month from the date you hand over shares, to receive demat credit. 11.Dematerialization would be done only when the issuer / their R&T Agent is satisfied of genuineness of securities & ownership status 12.All the joint holders should sign the DRF. 13.The pattern of holding in the DRF should match the pattern of holding on the share certificate & the pattern in which account is opened. 14.Demat requests with name(s) not matching exactly with the name(s) appearing on the certificates merely on account of initials not being spelt out fully or put after or prior to the surname, would be processed, provided the signature(s) of the client(s) on the DRF tallies with the specimen signature(s) available with the issuer/ their R & T agent. 15. If the signature in the DRF does not match with the signature available with
the issuer/ their R & T agent, the issuer/ their R & T agent may at the time of demat confirmation, ask for additional documentation (like bank attestation/ notarization, etc.) to prove that the certificate belongs to the person who forwarded the DRF. 16.In case there is any problem in processing the DRF, contact your DP and if he cannot resolve the problem you may contact NSDL. 35 | P a g e
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Buying and Selling of Dematerialization INTRODUCTION The procedure for buying and selling dematerialized securities is similar to the procedure for buying and selling physical securities. The difference lies in the process of delivery (in case of sale) and receipt (in case of purchase) of securities.
In case of purchase:• The broker will receive the securities in his account on the payout day • The broker will give instruction to its DP to debit his account and credit investor’s account •
Investor will give ‘Receipt Instruction to DP for receiving credit by filling appropriate form. However one can give standing instruction for credit in to ones accounts that will obviate the need of giving Receipt Instruction every time.
In case of sale:The investor will give delivery instruction to DP to debit his account and credit the broker’s account. Such instruction should reach the DP’s office at least 24 hours before the pay-in as otherwise DP will accept the instruction only at the investor’s risk.
Rights 37 | P a g e
1. Dematerialized securities can be traded on those stock exchanges connected to
NSDL. At present, NSE, BSE, CSE, DSE, LSE, BGSE, OTCEI, MSE, ISE & ASE are connected to NSDL. At these stock exchanges, two segments would be available to trade in dematerialized securities : ○
Unified (erstwhile physical) segment - In this segment delivery obligation can be met by delivering dematerialized or physical securities at the option of the seller. However, for a select list of securities prescribed by SEBI, securities cannot be delivered in physical form in the unified segment, of stock exchanges connected to NSDL. This list presently covers 160 securities. This list has been expanded to cover a total of 200 securities with effect from January 17, 2000. Over a period, this list would cover all actively traded securities.
Exclusive demat segment - In this segment delivery obligation can be met by delivering dematerialized securities only. Physical securities cannot be delivered in the exclusive demat segment.
Procedure Trading in dematerialized securities is done through your broker just like trading in physical securities. After your broker executes the trade, your DP will help to deliver shares to your broker (in case you sell) on the basis of valid instruction given by you to your DP and receive shares from your broker (in case you buy) on basis of valid instruction given by your broker to his DP.
Buy dematerialized securities 1. You purchase securities in any of the stock exchanges connected to NSDL through a broker of your choice and make payment to your broker. Make sure you tell your broker you want only demat shares.
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2. Broker arranges payment to clearing corporation/ clearing house of the stock exchange. 3. Broker receives credit in his clearing account with his DP on the pay-out day. He can immediately transfer these securities to your depository account, provided your account is already active. 4. Broker gives instructions to his DP to debit his clearing account and credit your depository account. 5. You give instruction to your DP for receiving credit in your depository account. If you have given standing instruction to receive credits, no separate instruction for receiving credit will be required. 6. If the instructions match, your account with your DP is credited.
Sell dematerialized securities 1. You sell your dematerialized securities in any of the stock exchanges linked to
NSDL through a broker of your choice. 2. You give instruction to your DP for debit of your depository account and credit of your brokers clearing member account at least 24 hours i.e. one working day prior to the pay-in date or before the deadline prescribed by your DP, so that your brokers clearing account is credited at the time arranged with him. 3. On the pay-in day, your broker gives instruction to his DP for delivery to clearing corporation/clearing house of the relevant stock exchange. 4. The broker receives payment from the clearing corporation / clearing house. 5. You receive payment from the broker for the sale in the same manner you
would receive payment for a sale in the physical mode.
Points To Remember 39 | P a g e
1. Trading continues to be through brokers. In case of any problem in execution of trade, contact your broker and if he fails to resolve the problem you may contact the stock exchange. 2. When you buy securities through the stock exchange, your brokers clearing account is credited to the extent of the securities purchased, on receipt of instruction from clearing corporation/ clearing house of the stock exchange. Your depository account is credited only when your broker gives a delivery instruction to his DP. Securities are not directly credited to your account by the clearing corporation/ clearing house of the stock exchange. In case your broker does not give a delivery instruction, contact him or concerned stock exchange or SEBI. If your depository account is not credited, in spite of your broker giving valid instruction to his DP, contact the DP and if he fails to resolve the same you may contact NSDL. 3. When you sell securities, you have to give a delivery instruction to your DP to
transfer the securities to your brokers clearing account. They are not automatically debited from your account by NSDL or by the clearing corporation/ clearing house of the stock exchange. In case the DP defaults in executing your instruction, the DP is liable to compensate you for the loss incurred, provided your instruction was in order and has been submitted to the DP at least 24 hours i.e. one working day prior to the pay-in date or before the deadline prescribed by DP. In case the DP fails to resolve your problem, you can contact NSDL.
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NEED OF THE STUDY The need of the study arises because of the reason that a trainee must understand the company, its achievements and tasks, products and services and also to collect information about its competitors, its products and services offered. So that, after understanding and collecting information about the organization and its competitors, a trainee will be able to work well for the organization. From the study I have learned very much, about the company as well as the strategy of the customers, which helps me a lot at my working days.
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HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8 Lac demat accounts.
HDFC Bank Demat services offers you a secure and convenient way to keep track of your securities and investments, over a period of time, without the hassle of handling physical documents that get mutilated or lost in transit.
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HDFC BANK is Depository participant both with National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL).
Features & Benefits As opposed to the earlier form of dealing in physical certificates with delays in transaction, holding and trading in Demat form has the following benefits:
Settlement of Securities traded on the exchanges as well as off market transactions. Shorter settlements thereby enhancing liquidity. Pledging of Securities. Electronic credit in public issue. Auto Credit of Rights / Bonus / Public Issues / Dividend credit through ECS. Auto Credit of Public Issue refunds to the bank account. No stamp duty on transfer of securities held in demat form. No concept of Market Lots. Change of address, Signature, Dividend Mandate, registration of power of attorney, transmission etc. can be effected across companies held in demat form by a single instruction to the Depository Participant (DP). Holding / Transaction details through Internet / email. 43 | P a g e
In case you need any more information or have any queries , feedback & complaints , you may please mail us at [email protected]
Secured & easy transaction processing
HDFC Bank Ltd provides convenient facility called 'SPEED-e' (Internet based transaction) whereby account holder can submit delivery instructions electronically through SPEED-e website (https://speede.nsdl.com). SPEED-e offers secured means of transaction processing eliminating preparation of instruction slips and submission of the same across the counter to the depository participant. The 'IDEAS' facility helps in viewing the current transactions and balances (holdings) of Demat account on Internet on real time basis.
Disclaimer: Whatever have been stated above are in the good interest of the Investor / Demat Applicants / holders to provide a brief picture about the depository system. You are requested go through the guidelines of the depositories before taking any further action. For detailed guidelines, you are requested to approach your nearest HDFC Bank branch. HDFC Bank will not be responsible for any misunderstanding / act based on the above. Also HDFC Bank might ask for additional information / documentation than what has been stated above to process your application / instruction. 44 | P a g e
ICICI Direct (or ICICIDirect.com) is stock trading company of ICICI Bank. Along with stock trading and trading in derivatives in BSE and NSE, it also provides facility to invest in IPOs, Mutual Funds and Bonds.
Trading is available in BSE and NSE
ICICI Direct offers 3 different online trading platforms to its customers
Type of Account
1. Share Trading Account Share Trading Account by ICICI Direct is primarily for buying and selling of stocks in BSE and NSE. 45 | P a g e
This account allows Cash Trading, Margin Trading,
Margin PLUS Trading, Spot Trading, Buy Today Sell Tomorrow and Call and Trade on phone.
ICICIDirect.com website is the primary trading platform for this trading account. They also provide installable application terminal based application for high volume trader.
2.Wise Investment Account 1. Online Mutual funds investment allows investor to invest on-
line in around 19 Mutual Fund companies. ICICI Direct offers various options while investing in Mutual Funds like Purchase Mutual Fund, Redemption and switch between different schemes, Systematic Investment plans, Systematic withdrawal plan and transferring existing Mutual Funds in to electronic mode. This account also provides facility to invest in Government of India Bonds and ICICI Bank Tax Saving Bonds.
2. Active Trader account gives more personalized investment
options to the investors. It allows investor to use online and offline stock trading. It also provides with independent market expertise and support through a dedicated Relationship Manager from ICICI.
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Active Trader also provides commodity trading. Brokerage and fees Account opening fees : Rs 750/- (One time nonrefundable)
Brokerage: ICICIDirect.com brokerage varies on volume of trade and inclusive of demat transaction charges, service taxes and courier charges for contract notes. It ranges from 0.1% to 0.15% for margin trades, 0.2% to 0.425% for squared off trades and 0.4% to 0.85% on delivery based trades.
Disadvantages of ICICI Direct
1. Getting access to ICICIDirect.com website during market session can be frustrating.
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OBJECTIVE • To find the market potential and market penetration of angel broking product offerings in Panchkula, Zirkpur, and local area nearby them. • To collect the real time information about preference level of customers using Demat account and their inclination towards various other brokerage firms e.g. India bulls, Share khan, India in foline, Religare, Alan- kit, Unicon. 48 | P a g e
• To expand the market penetration of Angel broking ltd. • To provide pricing strategy of competitors to fight cut throat competition. • To increase the product awareness of Angel broking as single window shop for investment solutions.
RESEARCH METHODOLOGY INTRODUCTION 49 | P a g e
Research Methodology refers to search of knowledge .one can also define research methodology as a scientific and systematic search for required information on a specific topic. The word research methodology comes from the word “advance learner ‘s dictionary meaning of research
as a careful
investigation or inquiry especially through research for new facts in my branch of knowledge for example some author have define research methodology as systematized effort to gain new knowledge.
TYPES OF RESEARCH
ANALYTICAL RESEARCH:It has to used facts or information already available and analyze these to make a critical evaluation of material.
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Considering the constraints it was decided to conduct the study based on sample size of 100 people in specific age groups.
METHODS OF DATA COLLECTION In the project work Primary data secondary data (both) sources of data has been used .
1. Primary data collection: In dealing with real life problem it is often found that data at hand are inadequate, and hence, it becomes necessary to collect data that is appropriate. There are several ways of collecting the appropriate data which differ considerably in context of money costs, time and other resources at the disposal of the researcher.
Primary data can be collected either through experiment or through survey. The data collection for this study was done in the following manner:
Through personal interviews:A rigid procedure was followed and we were seeking answers to many preconceived questions through personal interviews.
Through questionnaire:Information to find out the investment potential and goal was found out through questionnaires.
Through Tele-Calling:51 | P a g e
Information was also taken through telephone calls.
2. Secondary sources of data: In the secondary sources of data is used. (Internet , mazazine ,books, journals)
TOOLS OF ANALYSIS In the project work quantitative technique & percentage method are has been used.
RESEARCH DESIGN For the proper analysis of data simple quantitative technique such as percentage were used. It help in marketing more accurate generalization From the data available .The data which was collected from a sample of population was assumed to be representing entire population was interested .Demographic factor like age, income and educational background was used for the classification purpose .
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DATA ANALYSIS AND INTERPRETATION Q1. In which of these Financial Instruments do you invest into? Financial Instrument
Percentage of respondent
Mutual Fund Bond Online trading Derivative
75% 16% 7% 2%
Result of Preference of Investment
Interpretation: 53 | P a g e
This shows that although the mutual funds market is on the rise yet, the most favored investment continues to be in the Share Market. So, with a more transparent system, investment in the Stock Market can definitely be increased.
Q2. Are you aware of online Share trading? Aware of online share trading
Percentage of respondent
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Result of awareness of online trading
Interpretation: With the increase in cyber education, the awareness towards online share trading has increased by leaps and bounds. This awareness is expected to increase further with the increase in Internet education.
Q3. Heard about Angel Broking? Awareness of Angel Broking Yes No
Interpretation: 55 | P a g e
Percentage of respondent
This pie-chart shows that reliance money has a reasonable amount of Brand awareness in terms of a premier Retail stock broking company. This brand image should be further leveraged by the company to increase its market share over its competitors.
Q4. Do you know about the facilities provided by Angel Broking? Awareness of Angel Broking
Percentage of respondent
services Yes No
Interpretation: Although there is sufficiently high brand equity among the target audience yet, it is to be noted that the customers are not aware of the facilities provided by the company meaning thereby, that, the company should concentrate more towards promotional tools and increase its focus on product awareness rather than brand awareness. 56 | P a g e
Q .5 Which bank is easily available everywhere?
Company Name Angel ICICI HDFC
Percentage of respondent 15 20 15
Interpretation:30% have respondent of Angel Broking Ltd, 30% have respondent of HDFC, 40% have respondent of ICICI.
Q.6 Which banking Demat account offered you a large no. of services? Company Name Angel Broking HDFC 57 | P a g e
Percentage of respondent 22 10
INTERPRETATION: 44% have respondent of Angel Broking Ltd, 20% have respondent of HDFC, 36% have respondent of ICICI.
Q.7 Which bank provide you a better email facility? Company Name Angel Broking HDFC ICICI
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Percentage of respondent 15 13 22
INTERPRETATION: 30% have respondent of Angel Broking Ltd.,
26% have respondent of HDFC, 44% have respondent of ICICI.
Q.8 Which company provide a less BROKARAGE rate ?
Company Name Angel Broking HDFC ICICI
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Percentage of respondent 22 11 17
INTERPRTETATION: 44% have respondent of Angel broking
ltd., 22% have respondent of HDFC, 34% have respondent of ICICI. Q. 9 Which company provide you a large number of product and services? Company Name Angel Broking HDFC ICICI
Percentage of respondent 22 10 18
INTERPRETATION:44% have respondent of Angel Broking
Ltd., 20% have respondent of HDFC, 36% have respondent of ICICI.
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Represent a pie chart
OBSERVATION To study the sales and distribution management and improve the Customer Acquisition Process by analyzing the consumer behavior, response and mindset towards the product and services the company offers. 1. Preference of Investment: 61 | P a g e
Consumers want to invest 75% in Mutual funds, 16% in Bonds, 7% in online trading and 2% in Derivatives. 2. Awareness on Online Share Trading 72% consumers are aware of online share trading and 28% consumers are not aware of online share trading. 3. Awareness of Angel Broking 48% consumers are know about Angel Broking and 52% consumers are not know about Angel Broking. 4. Awareness about facilities provided by Angel Broking: 36% consumers are aware about the facilities provided by Angel Broking and 64% consumers are not know about the facilities provided by Angel Broking. 5. Availability of Bank 30% have respondent of Angel Broking Ltd, 30% have respondent of HDFC, 40% have respondent of ICICI. 6. Which banking Demat account offered you a large no. of services? 4% have respondent of Angel Broking Ltd., 20% have respondent of HDFC, 36% have respondent of ICICI. 7. Better email facility provided by bank 30% have respondent of Angel Broking Ltd., 26% have
respondent of HDFC, 44% have respondent of ICICI. 8.
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Provide a less BROKARAGE rate
44% have respondent of Angel Broking Ltd., 22% have
respondent of HDFC, 34% have respondent of ICICI. 9. Provide a large no. of Products and services 44% have respondent of Angel Broking Ltd., 20% have respondent of HDFC, 36% have respondent of ICICI.
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LIMITATION • The time constraint was one of the major problems. • The study is limited to the different schemes available under the Demat account selected. • The lack of information sources for the analysis part. • Geographical locations. •
Extreme variability in MARKET.
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The Brand image of Angel Broking Ltd. is good in market but according to customer satisfaction the company has to provide the better service. And also change the Market strategy.
2. They should focus on print and electronic media advertisements to make more people aware about them. 3. They should provide proper guidance to their customers about demat. 4. They should provide should offers and facilities to their customers to increase their attractiveness about demat. 5. For opening an account they require lots of signatures in a kit, which should be reduced.
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SUMMARY AND CONCLUSION SUMMARY OF LEARNINGS EXPERIENCE •
To get initial success in this field is very difficult. Although the business
generation becomes easier with time as we serve more people who then get added up in the loyal clientage. Thus time and service are two most factors to get in this field. •
Also the corporate remains a very important segment which gets business in
bulk but retail cannot be ignored which makes your business ticking. •
Customer remains in the pivotal position.
CONCLUSION Angel Demat Account is better than other Demat account. Angel Broking Ltd. have good return of investment. A good brand is always welcomed over here people are aware of quality so they go for ready to spend bucks of money. At last all conclusion be concluded by that Angel Broking Ltd. is still growing industry in India Angel Broking Ltd. account have less brokerage rate . It provide a security with the use of special type of key . 66 | P a g e
BIBLIOGRAPHY Websites: www.angelbroking.com www.hdfc.com www.icicidirect.com www.demataccount.com www.google.com
Reference books: 67 | P a g e
1. FINANCIAL INSTITUTIONS AND MARKETS 2.INVESTMENT MANAGEMENT
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MARKET RESEARCH QUESTIONNAIRE PLEASE TICK MARK THE APPROPRIATE CHOICES
DEMOGRAPHIC NAME: …………………………………………………………………………… ……….
Address …………………………………………………………………………… ………
Phone no: ………………………………………………………………………… ………..
Types of business: ………………………………………………………………… ………………..
Gender a. Male b. Female
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Your annual income? a. b. c. d.
0-4,00,000 4,00,001-8,00,000 8,00,001-12,00,000 12,00,001-15,00,000
QUESTIONNAIRE Q1. In which of these Financial Instruments do you invest into? Shares Derivatives
Q2. Are you aware of online Share trading? Yes
Q3. Heard about Angel Broking?
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Q4. Do you know about the facilities provided by Angel Broking? Yes
Q5. With which company do you have your DEMAT account? Angel Broking
Others (please specify)
Q6. Which bank is easily available everywhere? Angel broking HDFC ICICI
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Q7. Which banking Demat account offered you a large no. of services? Angel broking HDFC ICICI
Q8. Which bank provides you a better email facility? Angel broking HDFC ICICI
Q9. Which companies provide a less BROKARAGE rate? Angel broking HDFC ICICI Q10. Which company provide you a large number of product and services? 73 | P a g e
Angel broking HDFC ICICI
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