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 would like to express my deep sense of gratitude to Ms. Ruchi Paliwal for giving me support and helping me during my project study.

I would like to express my gratitude to my project guide Prof. Debdeep De 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 ROOPALI GUPTA

CONTENTS
Chapter No. Chapter I Chapter II At a Glance Introduction Chapter III Chapter IV Chapter V Chapter VI Chapter VII Chapter VIII Chapter IX Background Purpose Objective Limitations of the study Plan analysis 8-23 24-29 30-79 80-82 83-84 85-104 105-107 108-110 111-112 113-116 Contents Page 1-2 3-7

Industry Profile Company profile Products and Services SWOT Analysis Methodology Analysis & interpretation Summary of findings Recommendations & Conclusion Bibliography Annexure

At a Glance

Executive Summary
The study is about comparing the different services and products offered at SHCIL with the other Depository participants. 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 will 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, the researcher got interested to conduct study on the Depository Services under the title Comparative analysis of various 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 Indias 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 SHCILs 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.

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 Institutes 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 expand to the South-East Asia, with the aim of becoming the leader.

1.5 Basic facts about SHCIL SHCIL is Indias 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

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. SHCIL 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. 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. 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 2Oth 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 president 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 DPs and the depository is governed by an arrangement made between the two under the depositories act. In a strictly legal sense an 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 an 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.50 Lakh 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 owners 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:

DPs 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 DPs 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 corporate. 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. 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 doesnt 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 dont 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: DPs need to provide periodic reports to investors on their holding and transactions. >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.

Many safety measures like investor grievances, insurances cover, computer and communication infrastructure, periodic review, certificate of registration were made necessary to protect investors.

COMPARATIVE ANALYSIS ON THE BASIS OF 7P s OF SERVICE MARKETING:Marketing mix is one of the most basic concepts in marketing, defined as the elements of the organization that can be used to satisfy or communicate with customer. The traditional marketing mix is composed of the four p s i.e. 1. Product 2. Price 3. Place 4. Promotion These are very essential to the successful marketing of services. Service are usually produced and consumed simultaneously customers are often present in the firm s interact directly with the firm s personnel and are actually part of the service production process also, because services are intangible customers will often be looking for any tangible cue to help them understand the nature of service experience. acknowledgement of the importance of these additional communication variables has led services marketers to adopt the concept of an expanded marketing mix for services includes, 5. People 6. Physical Evidence 7. Process PRODUCT:- We are well aware of the fact that services product are found intangible nature. It includes, physical goods features, quality level, assessaries, packaging, warranties, product line and branding. Therefore now we have focused on the depository services (demat & brocking). And all the competitors of SHCIL provides same products with the same product line so here no significant diffarance between provided services so there no need to compete in between SHCIL and other major competitors in this factor. PRICE:- This element of marketing mix is related to the decision influencing the fee structure includes, A/C opening charges, AMC, Transfer fee, Brokerage charged by service providing organization. Analysis on the basis of secondary data is as follows. SERVICE PROVIDERS ELEMENTS SHCIL ANAND RATHI KOTAK SECURITIES MOTILAL OSWAL ICICI DIRECT.COM A/C OPENING 550 750 2500 100 1 AMC 560 360 360 500 500 TRANSFER FEE 35 25 Nil 25 35 DEMATERIALISATION 35 25 NIl 25 3034 ANALYSIS OF AMC & A/C OPENING CHARGES 0 500 1000

1500 2000 2500 3000 SHCIL ANAND RATHI KOTAK SECURITIES MOTILAL OSWAL ICICI DIRECT.COM SERVICE PROVIDER CHARGES A/C OPENING AMC With the help of above analysis it is found that SHCIL s a/c opening charges are competitive in nature , where a/c opening charges of KOTAK SECURITIES is highest because it include Rs. 2000/- as advance brokerage. While ICICI Direct.com promoted a scheme in which they open an account in Rs. 1/- only. On the basis of above AMC analysis it is found that annual charges SHCIL is comparatively high than competitors. Where the ANAND RATHI35 ANALYSIS OF TRANSFER FEE & DEMAT. CHARGES 0 5 10 15 20 2530 35 40 SHCIL ANAND RATHI KOTAK SECURITIES MOTILAL OSWAL ICICI DIRECT.COM SERVICE PROVIDER CHARGES TRANSFER FEE DEMATERIALISATION By analyzing the above chart it finds that transfer fee & dematerialization charges of SHCIL & ICICI DIRECT .COM are slightly same. While ANAND RATHI & MOTILAL OSWAL charges same amount for the transfer fee & dematerialization. On the other hand we can see that KOTAK SECURITIES stands strong because they provide these services at free of cost. 36 BROKERAGE ANALYSIS 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% SHCIL ANAND RATHI KOTAK SECUROITIES MOTILAL OSWAL ICICI DIRECT.COM SERVICE PROVIDER BROKERAGE MAX. MIN. BROKERAGE:- BROKERAGE

SERVICE PROVIDER MAX. MIN. SHCIL 0.55% 0.15% ANAND RATHI 0.59% 0.18% KOTAK SECUROITIES 0.45% 0.15% MOTILAL OSWAL 0.59% 0.18% ICICI DIRECT.COM 0.75% 0.25% By analyzing the above schedule and bar graph we come to know that SHCIL s charges for trading is competitive in the market. It is also found that KOTAK SECURITIES charges minimum amount for trading. On the other hand it is also found that ICICI DIRECT.COM charges maximum price for trading. Though SHCIL is well in this factor they need to cut off their price to attract more customer.37 PLACE:- Another important element of marketing mix is place which focuses attention on the offering of services by the provider to the customer & the place of location for the service generating organizations. In this factor the location is preferred at the point where we find some of the essential features such as easy and convenient accessibility, safety and protection, availability of the infrastructure facilities etc. We can t neglect that these features make available to the branches. The location advantage which simplify the task of marketing effectively. DISTRIBUTION ANALYSIS:In this damnation of the analysis we found that SHCIL have two service providing centers in Nagpur, both are located in commercial areas i.e. 1. Gandhibag (main office) 2. Dhantoly (branch) And other competitors having following numbers of service providing centers in Nagpur, shown in following table. SERVICE PROVIDER NO. OF CENTERS SHCIL 2 ANAND RATHI 13 KOTAK SECURITIES 8 MOTILAL OSWAL 5 ICICI DIRECT.COM 138 0 2 4 6 8 10 12 14 NUMBER OF CENTERS 1 2 3 4 5 SERVICE PROVIDER NO. OF CENTERS By analyzing the above data we found that as compared to competitors (except icici direct.com) SHCIL have less number of branches though it having the maximum number of DP Account. In near future SHCIL is planning to expand their service area by opening branches in Yawatmal, Wardha, Chandrapur dist which are closer to the Nagpur district. 1. SHCIL 2. ANAND RATHI 3. KOTAK SECURITOES 4. MOTILAL OSWAL 5. ICICI DIRECT.COM39 PRAMOTION:- Sales do not occur automatically to be more specific in the business environment where we find the intensity of competition moving upward, it is not possible to go and remain at for the long time to come, unless we prepare the ground or set the stage for future expansion & evolve new ideas for creating favorable selling conditions. It is sales promotion which is backs up pre selling & stimulates the impulsing buying. It attracts the prospects & keeps moving the existing customers behind the product. PRAMOTIONAL ANALYSIS: SHCIL: In the period of two month of summer project we found SHCIL s promotional activities are as follows. SHCIL offers combo pack scheme i.e. DP account and Trading account, both in

Rs. 550/- only. A trading account holders get the facility of opening a saving account with UTI bank with the minimum balance of Rs. 500/- where normally charged minimum balance Rs. 5000/It also provides corporate account at competitively less charges (i.e. Rs. 550/- only) ANAND RATHI:- Maximum number of advertising hoardings found in Nagpur region in well located areas. Attractive punch line Behind Every Successful Investor. Believe in advertising in local news paper and electronic media.40 KOTAK SECURITIES:- Kotak offers saving bank account of kotak mahindra bank with Dp account. Using attractive punch line Think Investment, Think Kotak Heavy advertising strategy in print and electronic media. MOTILAL OSWAL:- Attractive punch line Solid Research, Solid Advice. Advertisement hoardings found in main commercial areas. Motilal Oswal publishes business review. ICICI DIRECT.COM:- Offers bank account with trading and demat account. Offers a scheme of account opening at Rs.1/- Account holder gets insurance of Rs. 100000/-. ANALYSIS By analyzing the above data we found that SHCIL has lagging behind comparing to their competitor in the essential element of promotion. Where ANAND RATHI & KOTAK SECURITIES believe in More Promotion More Sales. Though they entered recently in the market compared to SHCIL they are well established in the market & competing toughly because of their rational promotional activities.41 PEOPLE:- All human actors who plays the part in service delivery and thus influence the buyers perception manly the firms personnel the customer and the other customers in service environment. How these people are dressed their personal appearance & their attitudes & behavior all influence the customer s perception of the service. Stock Holding Corporation Of India Ltd hires quality people and they are trained the technical skill which are using in organization. On the other hand competitors provide the technical knowledge time to time and make them aware about up going competition. In addition to that damnation competitor has made the completion of formal dress code to their executive and employees, which indicates discipline to their duties. PHYSICAL EVIDANCE:- The environment in which the services are delivered and where the firm and customer interact and any tangible components that facilitate performance or communication of services. The physical evidence of services includes all the tangible representation of the service. Such as broachers, latter head, business card, report format and etc. SHCIL provides following thing to their customer Monthly fact sheet, Demat letter, Annual report, Demat kit. Etc. And other competitor also provides the same kind of physical things. So it is not better to compete in between this dimension of service marketing mix. 42 PROCESS:- What is process? The actual procedure, mechanism and the flow of activities by which the - services delivered and operating systems. The actual delivery steps the customer experiences, or the operational flow of services will also provide customer with evidence or which to judge the service. By analyzing the process model of SHCIL and it competitors we analyze following process model dimensions. 1. Time taken for account opening. 2. Technology employed. 3. Order processing. 4. Settlement of claim 1. Time taken for account opening:- A) SHCIL:It takes minimum 2 days to open an account and week to get it activated B) ANAND RATHI:- This firm takes 1 to 2 days for activation. C) KOTAK and ICICI DIRECT.COM and MOTILAL OSWAL take nearly 3 days to open and get it activated.43 2. Technology employed:- SHCIL uses intranet technology by which they are interconnected with each other all over India. Company offers personal e-mail a\c to all the employees so they can

connect with each other, which help to solve the problem quickly as possible. And the competitor s uses highly advanced technology like, online trading by assembling trading software with customer at home. They installed live update displays of stock exchange. They provide facility like, hot tips regarding buy and sale of stock with the help of group SMS software. 3. Order processing In SHCIL customer place their order by phone and personally. For security purpose every customer by their pin number. Competitor also provides the same kind of service and additionally they provide online trading. 4. Settlement of claim As per the norms, SHCIL settles the claims in T+2. And if any one having the account in UTI bank claim settles before T+1. Anand Rathi and Motilal Oswal also settle the claim in T+2 period. While ICIC Direct.com & Kotak Securities settle within the short span of time, because they are the bank themselves.