A PROJECT REPORT

ON
DEPOSITORY SYSTEM
FOR
JALGAON PEOPLES COOPRATIVE BANK
SUBMITTED BY URWASHI DILEEP TAYADE
Under the guidance of
"Prof. -----------------"
SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY
In the partial fulfillment of the requirements for the award of the degree of MASTERS IN BUSINESS
ADMINISTRATION (MBA)
Through
Progressive Education Societys
MODERN COLLEGE OF ENGINEERING MBA DEPARTMENT
1186A, Shivajinagar, Pune 411 005
BATCH 2015-17

Company Certificate
(ON LETTERHEAD OF COMPANY)
TO WHOM-SO-EVER IT MAY CONCERN

This is to certify that (Student Name)______________ has completed his / her Project work on the topic
_______________________________ during the period from ______ to ___________ .
She / He has been sincere, hardworking and punctual in his/ her work. We wish him/ her success in her
future endeavors.

Authorized signatory
Designation
Company Seal

DECLARATION

I (Name of Student)_________________________________________________, of
MBA :_______ Roll no_____ hereby declare that the Project work titled
____________________________________________________________________which
has been submitted to University of Pune, is an original work of the undersigned and
has not been reproduced from any other source.

Signature Date:
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Place

ACKNOWLEDGEMENT

I am highly indebted to ________________(Company name) for giving me this opportunity to do my

internship project in their esteemed organization. It has contributed immensely to my learning.
I would like to thank my external guide____________ for giving me the required support in completing
my project.
My profound gratitude towards my internal guide ______________________ for giving me valuable
guidance, suggestions and advice without which, this project could not have been completed.
I would also like to thank all my faculty mentors for giving me the necessary insight into my study.

Signature Date:

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INDEX

TABLE NO.

PARTICULARS

EXECUTIVE SUMMARY

LITERATURE REVIEW

COMPANY PROFILE

RESEARCH METHODOLOGY

DATA ANALYSIS

RECOMMENDATIONS AND SUGGESTIONS

CONCLUSIONS

ANNEXTURE

PAGE NO.

EXECUTIVE SUMMARY

For preparing the project report, I have completed internship in Jalgaon peoples
cooperative bank for 2 months during the suggested duration from 4-06-2016 to
30th-08-2016, to avail the necessary information. I have filled up the questionnaire
with the customers and employees of JPC Bank. The blend of learning and
knowledge acquired during my practical studies at the Bank is presented in
this project report. The project report starts with the research objectives, basic
information regarding the research approach, the sample size for my research is
100 and I have used simple random sampling method for my research and the
sources for data collection are both primary sources and secondary sources. I have
written findings and some of the limitations which I have faced during my research
work .I hope that the information incorporated in this project report would be
appreciated as I have put in my efforts in leaving no stone unturned as I consider it
to be true, fair and relevant in its content and context to the best of my knowledge
and ability

INTRODUCTION

Depository system essentially aims at eliminating the voluminous and cumbersome paper work
involved in the scrip-based system and offers scope for paperless trading through state-of-theart technology. It is an institution which maintains an electronic record of ownership or
securities. The storage and handling of certificates is hence immediately eliminated which
generates a reduction in costs like back office cost for handling, transporting and storing
certificates.
Depositary participant is an institution akin to bank for securities. When an investor hands over
securities to a depository participant, investors account is credited. The investors depository
system account will show their holdings. His account is updated for his transactions of sale and
purchase but without physical movement of scripts or transfer deeds. In depository system, share
certificates belonging to the investors are dematerialized (demats). Dematerialisation or Demat
is a process whereby investors securities like shares, debentures etc., are converted into
electronic data and stored in computers by a Depository. Securities registered in investors name
are surrendered to depository participant (DP) and these are sent to the respective companies
who will cancel them after Dematerialization and credit investors depository account with the
DP. The securities on Dematerialization appear as balances in ones depository account. These
balances are transferable like physical shares. If at a later date, investors wish to have these
demat securities converted back into paper certificates, the Depository does this and their
names are entered in the records of depository as beneficial owners. The beneficial ownership
will be with investor but legal ownership will be with the depository. Consequently, benefits like
interest, dividend, and rights: bonus and voting rights will be with investors. Since depository is
to get securities transferred in its name, the depository name will be registered in the ownership
register maintained by the company. Thus, instead of name of several owners, the name of
depository figures in the register of company.
Since transfer will be affected only in depository, register of company need not be updated on
every transactions of sale or purchase of companys share. It alleviates the hardships currently
faced by the investors and it also offers option for converting the shares from electronic to
physical or paper form through a process of rematerialisation (remat). Depository system is,

indeed, time tested and long prevalent in many advance countries and has been playing a
significant role in stock markets around the world.
The depository system comprises of:
1)
2)
3)
4)

Depository
Depository Participants (DPs)
Companies/issuer
Investors

The first depository was set up way back in 1947 in Germany. In India it is a relatively new
concept introduced in 1996 with the enactment of Depositories Act 1996. Their operations are
carried out in accordance with regulations made by SEBI, bye-laws and rules of Depositories Act
and SEBI (Depositories and Participants) Regulations Act 1996.
Need for Depository System :
The trading in physical segment is full of inefficiencies due to handling of large volumes of certificates
and also involves various other problems like delays in transfer, delay in settlement, loss in transit,
forgerly certificates, stolen certificates, mutilation of certificates, postal losses, court cases, litigation etc.
To overcome these deficiencies, a new system of trading, viz. Depository system was introduced, which
facilitates investor to hold securities in electronic form and to trade in these securities. The first
depository set up in India is National Securities Depository Limited (NSDL) and is promoted by IDBI,
UTI and NSE.

Objectives of the Study:

At Present the Indian stock exchanges are following screen based trading and electronic
settlement system. But investors scattered at various distant places from trading and settlement
place. So there are some problems arising in the settlement and transfer system. Thus, there is a
need to evaluate the effectiveness of Indian Depository system.
The Main objectives of the study are:
1) To evaluate the performance of the Depository system in India with reference to NSDL.
2) To study the Organizational frame work, Operational policies, Problems and Prospects
and financial performance of NSDL.

3) To present legislative measures of dematerialization and to understand the present status

of dematerialization in India.
4) To analyze services rendered and quality among the DPs and opinions of investors with
regard to the functioning of NSDL.
5) To identify the Investors expectations from the DP companies and to exhibit the
Investors perceptions on the services offered by the DP companies
6) To make appropriate and relevant recommendations to the management of the
organization under study.

LITERATURE REVIEW

DEMATERIZATION OF EQUITY SHARES IN INDIA

Overview
In the present study, an attempt has been made to measure changes in the liquidity ,returns and volatility
before and after demat of shares. Volume of shares traded is considered as a surrogate for liquidity.

Continuously compounded returns are used to denote returns and standard deviation is calculated as a
proxy for volatility measure.

Understanding Depository System

What is a Depository?
A depository is an organisation which holds securities (like shares, debentures, bonds, government
securities, mutual fund units etc.) of investors in electronic form at the request of the investors through a
registered depository participant. It also provides services related to transactions in securities.

What is the minimum net worth required for a depository?

The minimum net worth stipulated by SEBI for a depository is Rs.100 crore.

How many Depositories are registered with SEBI?

At present two Depositories viz. National Securities Depository Limited (NSDL) and Central Depository
Services (India) Limited (CDSL) are registered with SEBI. Their addresses are:
National Securities Depository Limited (NSDL) Trade World, A wing, 4th & 5th Floors, Kamala Mills
Compound, Lower Parel, Mumbai-400013
Tel: (022) 2499 4200 (60 lines)
Fax: (022) 24976351
Email: info@nsdl.co.in
Central Depository Services (India) Limited (CSDL) Phiroze Jeejeebhoy Towers, 16th Floor, Dalal Street
Mumbai 400001
Phone:91-22-22723333
Fax91-22-22723199/22722072

Email : investors@cdslindia.com

Who is a Depository Participant (DP)?

A DP is an agent of the depository through which it interfaces with the investor and provides depository
services.

Who can be a DP ?
Public financial institutions, scheduled commercial banks, foreign banks operating in India with the
approval of the Reserve Bank of India, state financial corporations, custodians, stock-brokers, clearing
corporations / clearing houses, NBFCs and registrar to an issue or share transfer agent complying with the
requirements prescribed by SEBI can be registered as DP. Banking services can be availed through a bank
branch whereas depository services can be availed through a DP.

CHAPTER 2

COMPANY PROFILE
NAME :- JALGAON PEOPLE S COOPERATIVE BANK Ltd
Head office 152,polan peth,dena bazaar, jalgaon.

425001 ph. No. 2222771 to

6 Fax 0257-22227711
Manager :- Mr. Danurkar
Established in :- 1934
No of branch :- 29
Member :- 14521
Deposit :- 1042.85
Loan :- 720.43
Net profit :- 759.493

THE JAGAON PEOPLES COOPERATIVE BANK LTD JALGAON

BRANCH
HISTORY
The

jalgaon peoples Ocooperative bank

leadership

ltd was incepted in 1934 in jalgaon under

the

of Late shri raosaheb Rupchandlathi,Shri S.V Deshpande and Shri Mishrilaji

Joshi.The main motive behind this inception was to cater the needs of the common man.It was
only under the able leadership of Shri kakasahebh Ramdas Dhanu Patil (vice president )in

1948 that the bank gained its operational momentum and created an impact on peoples
mind.

In 1969,, Late Shri Yashwantrao Patil (Chairman) extended the bank's areas of operation & new
branches were setup at Ring Road, Asoda, Bhadli, Nashirabad. But it was in 1984 that the bank
established a firm footing and got recognized as a dependable peoples' bank. Late Shri
Appasaheb Prabhakar Ramdas Patil, the chairman during this period, was a man with a vision
and he led the bank through a technological and professional restructuring, eventually providing
better services to the customers.
In 1994 the bank celebrated its Diamond Jubilee under the leadership of Late Shri Appasaheb
Patil which was eventually passed on to Shri Babulal Ramlal Choube. During their tenure they
both acquainted the customers & staff members to professionalism in banking operations and
helped the bank triumph a One Crore net profit, first time ever in the bank's history till then.
In 2006, Shri Bhalchandra Patil took over the bank's charge and is still leading the bank through
its golden era. Bank has spread under his leadership through 36 branches at Jalgaon city and
district, Dhule, Nasik, Aurangabad, Pune, Mumbai, Malkapur and Burhanpur (Madhya Pradesh).

SERVICES

LIC & ICICI LOMBARD INSURANCE

The Bank is a Corporate Agent of Life Insurance Corporation of India(LIC) vide License No.
80001961 (license to act as a Corporate Agent under the Insurance Act, 1938 (IV of 1938).
The Bank also Corporate Agent of ICICI Lombard General Insurance Co. vide License No. ILG
5923705.
At Jalgaon Peoples Co-op. Bank, you can avail the services of trained & certified professional

consultants from LIC, who can guide you in ascertaining your insurance needs and assist you in
making an insurance plan that is just right for you. Customers can avail this facility at any of our
branches.

PANCARD
Back

We extend our services to accepting and processing PAN card applications for our customers and
shareholders. This facility is available at all our branches.
SMS ALERT SERVICES

On registration, a customer can get his account transaction details instantly on his mobile
through SMS
Other facilities in SMS Alert Service are:

ATM withdrawal.

Balance and Mini-Statement.

Cash withdrawal.

Inward/Outward cheque return.

IBC/OBC release.

Notifications to Pigmy A/c holder by providing total Credit/Debit and Closing balance
(Frequency 15 days)

Installment overdue SMS to Loan Account holder (Monthly)

Interest Charged SMS to Loan Account holder.

Overdue SMS alert to overdue accounts.

Minimum balance charged SMS alert

JPC Bank Mobile Banking Terms and Conditions :

1. I/We declare that all particulars and information given in this application form are true,
correct and complete and up to date to the best of my knowledge and in all respects.
2. I/We agree and understand that The Jalgaon Peoples Co-op Bank Ltd. has all rights to
reject my application for providing access to Mobile Banking facility without assigning
any reasons thereof. The bank also reserves rights to retain all documents submitted with
the application.
3. Transaction initiated through Mobile Banking application are real time / instantaneous
transactions and such are irrecoverable / non-retractable; Bank shall not entertain any
request for revocation of transaction or stop payment request for transaction initiated
through Mobile Banking.
4. Customer shall be responsible for the safe custody and security of the Mobile Banking
application downloaded on their mobile phones to avoid unauthorized usages and should
immediately inform the Bank for disabling of Mobile Banking facility in case of loss or
theft of mobile phone.
5. For security reason customer are advised not to create simple MPIN like 1234 or 1111 or
2222 etc. which can be easily tried by third persons.

6. Transaction request of the Account Holder shall be processed solely based on the
information provided by Account Holder i.e Account Number, MMID, Mobile Number,
IFSC Code. Account Holder shall be solely responsible for wrong credit due to wrong
information provided by the Account Holder.
7. The Bank shall not be responsible for non-execution or delay in execution of Account
Holders request for transaction caused due to system or communication failure or due to
any other reason beyond the control of the bank.
8. Customer shall abide by the limits imposed by the Bank on maximum number of
transaction and maximum amount permitted through Mobile Banking. Bank reserves the
right to change maximum number of transaction and amount any time.
9. The Bank may levy charges for Mobile Banking facility and Account Holder shall bear
the charges as levied by the Bank from time to time for this facility. The charges as and
when levied / modified shall be displayed on the banks website and it shall be the
responsibility of Account Holder to visit the Banks website from time to time.
10. Customer shall not use Mobile Banking channel for transfer of funds for illegal activities.
11. Bank shall be at liberty to affect any change in terms and conditions from time to time,
without any prior notice. In addition to above Account Holders shall also be guided by
Terms and Conditions of Mobile Banking Facility as mentioned at the Banks website.

12. Khandesh Bhushan Puraskar

13. Our Bank's Chairman Hon.Mr. Bhalchandra Patil has been awarded by "Khandesh
Bhushan Puraskar" by Rotari & Rotaract Club Dhule.
14. Rotari & Rotaract Club Dhule.
15.

16.

17.
18. MSCBA Best CEO Award 2016
19. Bapuraoji Deshmukh Best CEO award is given to our Hon. CEO Mr Anil Patkar by
Maharashtra Urban Coop Bank Association Mumbai.
20. Maharashtra Urban Coop Bank Association Mumbai.
21. Times Accent HR leader award 2016
22. Most Influential HR leader award is given to our Hon. DGM Mrs Swati Sarda by Times
Accent.
23. Times Accent

24.

25.
26. Banko Award 2015
27. Banko award in the Rs.1001 to Rs.1750 crores Deposit category
28. Banko
29. Banking Frontiers award 2015
30. Banking Frontiers award 2015 in following categories :
31. 1) Best CIO award to Mr.Santosh Wani, General Manager- Information Technology.
32. 2) Best CBS Initiative
33. 3) Best Marketing Initiative
34. Banking Frontiers

35.

36.
37. Skoch ward 2015
38. awarded by skoch award for HR, CSR and Customer services
39. skoch consulting services
40. Banco award 2014
41. banco award 2014
42. banco

43.

44.
45. Special Loans schemes_ Banking Frontiers 2014
46. Our Bank has been awarded Special Loans schemes by Banking Frontiers.
47. Banking Frontiers
48. Best Chairman award_ Banking Frontiers 2014
49. Your bank's Chairman Mr.Bhalchandra Patil has been awarded as Best Chairman award
by Frontiers 2014.
50. Banking Frontiers

51.

52.
53. Skoch award
54. Gold Award for Excellence in Banking by Skoch Consultancy Services.
55. Skoch Consultancy Services
56. NUBA Award
57. Awarded by Nasik Urban Bank Association as Best Cooperative Bank in North
Maharashtra region.
58. NUBA

59.

60.
61. Banko Award 2013
62. The Jalgaon Peoples Co-op. Bank Ltd. Jalgaon, has achieved theBanko award for Best
Bank ( category Deposits of 500 to 1000 cr )
63. Banko
64. Banking Frontier 2013

65. The Jalgaon Peoples Co-op. Bank Ltd. Jalgaon, has achieved the Banking Frontier award
for Best Solution for Credit Rating.
66. Banking Frontier

67.
History of the banking sector
Banking sector play an important part in financing the various business and household
sector .whether the business is small scale or major industry finance for various
purpose is needed to meet the requirements due to interface this sector has
flourished .In older days due to Zamindaar and Savkari system of lending money,many
people were exploited and where force to go back lenders decision .But due to RBI and
various government bodies

Research Methodology:
Although India adopted multi-depository system model to provide competitive and healthy
depository system for surpass services to Investors. There is a chance to various entities to enter

into Depository system but only two organizations National Securities Depository Ltd (NSDL)
and Central Depository Services Ltd (CDSL) are providing depository services presently.
The data has been collected from the following sources:1.

Primary data

2.

Secondary data

Primary data:
In this study the questionnaire method have been used to collect primary data.

Secondary data:
Secondary data is collected from the website of www. jpcbank.co.in , NSDL (www.nsdl.co.in)
and CDSL (www.cdsl.ac.in), website of Indian central depository system (CDS), published
reports of NSDL and Govt. of India, Depository Act-1996, SEBI Act-1992, and Capital Market
Services, published books and printed material on financial services or Intermediaries.

Objectives of the Study:

At Present the Indian stock exchanges are following screen based trading and electronic
settlement system. But investors scattered at various distant places from trading and settlement
place. So there are some problems arising in the settlement and transfer system. Thus, there is a
need to evaluate the effectiveness of Indian Depository system.
The Main objectives of the study are:
1) To evaluate the performance of the Depository system in India with reference to NSDL.
2) To study the Organizational frame work, Operational policies, Problems and Prospects
and financial performance of NSDL.
3) To present legislative measures of dematerialization and to understand the present status
of dematerialization in India.

4) To analyze services rendered and quality among the DPs and opinions of investors with
regard to the functioning of NSDL.
5) To identify the Investors expectations from the DP companies and to exhibit the
Investors perceptions on the services offered by the DP companies .
6) To make appropriate and relevant recommendations to the management of the
organization under study.

Constituents of Depository System:

1. Depository:
Depository functions like a securities bank, where the dematerialized physical securities are
traded and held in custody. This facilitates faster risk free and low cost settlement. Depository is
much like a bank and performs many activities that are similar to a bank depository:

Enables surrender and withdrawal of securities to and from the depository through the

process of demat and remat,

maintains investors holdings in electronic form,
Effects settlement of securities traded in depository mode on the stock exchanges,
Carries out settlement of trades not done on the stock exchanges (off market trades).

In India a depository has to be promoted as a corporate body under Companies Act, 1956. It is
also to be registered as a depository with SEBI. It starts operations after obtaining a certificate of
commencement of business from SEBI. It has to develop automatic data processing systems to
protect against unauthorised access. A network to link up with depository participants, issuers
and issuers agent has to be created.
Depository, operating in India, shall have a net worth of rupees one hundred crore and
instruments for which depository mode is open need not be a security as defined in the Securities
Contract (Regulations) Act 1956. The depository, holding securities, shall maintain ownership
records in the name of each participant. Despite the fact that legal ownership is with depository,
it does not have any voting right against the securities held by it. Rights are intact with investors.

There are two depositories in India at present i.e.

1. NSDL: National Securities Depository limited
2. CDSL: Central Depository Services (India) Limited

ii) Depository Participants (DP):

A DP is investors representative in the depository system and as per the SEBI guidelines,
financial institutions/banks/custodians/stock brokers etc. can become DPs provided they meet the
necessary requirements prescribed by SEBI. DP is also an agent of depository which functions as
a link between the depository and the beneficial owner of the securities. DP has to get itself
registered as such under the SEBI Act. The relationship between the depository and the DP will
be of a principal and agent and their relation will be governed by the bye-laws of the depository
and the agreement between them. Application for registration as DP is to be submitted to a
depository with which it wants to be associated. The registration granted is valid for five years
and can be renewed. As depository holding the securities shall maintain ownership records in the
name of each DP, DP in return as an agent of depository, shall maintain ownership records of
every beneficial owner (investor) in book entry form.
A DP is the first point of contact with the investor and serves as a link between the investor and
the company through depository in dematerialisation of shares and other electronic transactions.
A company is not allowed to entertain a demat request from investors directly and investors have
to necessarily initiate the process through a DP.
Eligibility criteria for depository participants:
The following entities are eligible for becoming depository participant in accordance with
Regulation 19 of the SEBI (Depositories and Participants) Regulations, 1996.

A public financial institution as defined in Section 4A of the Companies Act, 1056.

A bank included in the second schedule of the Reserve Bank of India Act, 1934.
A foreign bank, operating in India with the approval of Reserve Bank of India.
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 by any of the four
institutions mentioned above.

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

under Section 12(1A) of the SEBI Act, 1992.

A clearing corporation or a clearing house of a stock exchange.
A stockbroker having a minimum net worth of rupees TWO CRORES. The aggregate
value of the portfolio of securities, of the BOs, held in dematerialized form in a
depository through him, shall not exceed 100 times of the net worth of the stockbroker.
(Not applicable for DPs whose net worth is Rs. ten crores). In case the stockbroker seeks
to act as a participant in more than one depository, he shall comply with the net worth

criteria separately with each such depository.

A non-banking finance company, having a net worth of not less than rupees fifty lakhs
provided that such company shall act as a participant only on behalf of itself and not on
behalf of any other person. Provided further that a non-banking finance company may act
as a participant on behalf of any other entity, if it has a net worth of Rs. fifty crores in

addition to the net worth specified by any other authority.

A registrar to an issue or share transfer agent who has a minimum net worth of
Rupees ten crores and who has been granted a certificate of registration by SEBI.

Characteristics of depository participant:

Acts as an Agent of Depository

Directly deal with customer

Functions like Securities Bank

Account opening

Facilitates dematerialization

Instant transfer on pay out

Credits to investor in IPO, rights, bonus

Settles trades in electronic segment

iii) ISSUER / Companies:

The issuer is the co. which issues the securities. It maintains a register for recording the names of
the registered owners of securities and the depositories. The issuer sends a list of shareholders
who opt for the depository system. And only that co.s can issue the securities which are
registered under stock exchanges
iv) BENEFICIAL OWNER/ INVESTOR:

Beneficial owner is a person whose name is recorded as such with a depository. It means a
person who is engaged in buying and selling of securities issued by the companies and is
registered his/ her securities with the depository in the form of book entry. And he/ she has all the
rights and liabilities associated with the securities
Facilities offered by depository system:
1) Dematerialization: It is a process of conversion of physical share certificate into
electronic form. So, when a shareholder uses the dematerialization facility, company
take back the shares, through depository system and equal numbers of shares are
credited in his account in e-form.
2) Rematerialization: Rematerialization is the exact reverse of Dematerialization. It refers
to the process of issuing physical securities in place of the securities held electronically in
book-entry form with a depository.
Other Services:
a) Pledging Dematerialized Shares: Dematerialized shares could be pledged; in fact, this
is more advantageous as compared to pledging share certificates. After loan is repaid one
can request for a closure of pledge by instructing ones DP through a standard format.
The pledgee on receiving the repayment as well as the request for closure of pledge will
instruct his DP accordingly. Even the locked-in securities can be pledged. The pledger
continues to remain the beneficiary holder of those securities even after the securities are
pledged.
b) Initial Public Offerings: Credits for public offers can be directly received into demat
account. In the public issue application form of depository eligible companies, there will
be a provision to indicate the manner in which securities should be allotted to the
applicant. One is to mention ones client account number and the name and identification
number of DP. All allotment due to investor will be credited into required account.
c) Receipt of Cash/non-cash Benefits: When any corporate event such as rights or bonus
or dividend is announced for a particular security, depository will give the details of all
the clients having electronic holdings in that security as of the record date to the registrar.
The registrar will then calculate the corporate benefits due to all the shareholders. The
disbursement of cash benefits such as dividend/ interest will be done directly by the
registrar. In case of non-cash benefits, depository will directly credit the securities

entitlements in the depository accounts of all those clients who have opted for electronic
allotment based on the information provided by the registrar.
d) Stock Lending and Borrowing: Through the depository account securities in the demat
form can be easily lent/ borrowed. Securities can be lent or borrowed in electronic form
through an approved intermediary, who has opened a special intermediary account with
a DP. Instructions are to be given to DP through a standard format (which is available
with DP) to deposit securities with the intermediary. Similarly to borrow securities from
the intermediary, one has to instruct DP through a standard format (which is available
with your DP).
e) Transmission of Securities: Transmission of securities due to death, lunacy, bankruptcy,
insolvency or by any other lawful means other than transfer is also possible in the
depository system. In the case of transmission, the claimant will have to fill in a
transmission request form, (which is available with the DP) supported by valid
documents.
f) Freezing Account with DP: If at any time as a security measure one wishes that no
transaction should be effected in ones account, one may advise ones DP accordingly. DP
will ensure that account of such investor is totally frozen until further instructions from
him.
Benefits of Depository System:
1) This system will eliminate paper work as the book entry system does not need physical
movement of certificates for transfer process.
2) The risk of bad deliveries, fraud and misplaced, mutilated and lost share certificates will
not exist.
3) The electronic media will shorten settlement time and hence the investor can save time
and increase the velocity of security movement.
4) Investors will be able to change portfolio more frequently.
5) The capital market will be more transparent as the trading, clearing and settlement
mechanism have to be highly automated and interlinked with the depository among them.
6) The market will be highly automated and efficient due to the usage of computing and
telecommunication technology for the back office activities for all the capital market
players.

DEMATERIALISATION PROCESS:

NSDL
REGISTRAR

Depository
participant

INVESTOR

1. Appointing DP:
Any investor who intends to transact through depository system has to engage one depository
participant (DP). He can approach a DP of his choice and open an account with him just like one
opens an account with a bank. Investor gets an identification number called Client ID (just as one
gets ones bank account number) which serves as a reference point for all his transactions with
D.P.
Every investor before getting his holding dematerialised has to enter into an agreement with the
depository through a participant. This step is necessary whether investor already has securities or
securities are yet to be issued in a fresh issue. The investor contracts only with that depository
which accepts his security in depository mode since it is not necessary that all eligible securities

must be in depository mode and with all the depositories. The decision on whether or not to hold
securities within the depository mode and if in depository mode, with which depository or
participants, would be entirely with the investor.
2. Request for Demat:
After any agreement is entered for getting securities dematerialised and his account is opened,
the investor makes an application to depository participants in form called Dematerialisation
Request Form (DRF) to be provided by the DP and hands over his share certificates duly
cancelled by writing surrendered for dematerialisation to them for demat. The DP will accept
certificates registered only in investors name.
The request for dematerialisation with the depository participants is sent to the depository
through depository network with which DP is connected.
Simultaneously DP submits the securities certificates to the issuer company or its Registrar of
transfer.
3. Approach the Company or Registrar of Transfer
The depository will electronically intimate the issuer or its Registrar and transfer agent of the
dematerialisation request. The issuer or the Registrar and transfer
Agent has to verify the validity of the security certificates as well as the fact that the DRF has
been made by the person recorded as a member in its Register of Members. If the issuer or its
Registrar is satisfied, it dematerialises the scrip and updates its record.
4. Confirmation of Demat
The Registrar to transfer or the concerned company when satisfied with the case of demat has to
inform the depository of the completion of dematerialisation authorising an electronic credit for
that security in favour of the investor.
5. Crediting the Clients Account
DP credits investors account with the number of shares so dematerialised and thereafter investor
hold the securities in electronic form. If there is rejection of demat request then such credit is not
given. After crediting the account, the client is sending the necessary information in form of a
statement like we get bank statement after bank transactions.

Demat Account:

Demat account is a safe and convenient means of holding securities just like a bank account is
for funds. Today, practically 99.9% settlement (of shares) takes place on demat mode only. Thus,
it is advisable to have a Beneficiary Owner (BO) account to trade at the exchanges.
Benefits Of Demat Account:

A safe and convenient way of holding securities (equity and debt instruments both).
Transactions involving physical securities are costlier than those involving dematerialised
securities (just like the transactions through a bank teller are costlier than ATM

transactions). Therefore, charges applicable to an investor are lesser for each transaction.
Securities can be transferred at an instruction immediately.
Increased liquidity, as securities can be sold at any time during the trading hours
(between 9:55 AM to 3:30 PM on all working days), and payment can be received in a

very short period of time.

No stamp duty charges.
Risks like forgery, thefts, bad delivery, delays in transfer etc., associated with physical

certificates, are eliminated.

Pledging of securities in a short period of time.
Reduced paper work and transaction cost.
Odd-lot shares can also be traded (can be even 1 share).
Nomination facility available.
Any change in address or bank account details can be electronically intimated to all
companies in which investor holds any securities, without having to inform each of them

separately.
Securities are transferred by the DP itself, so no need to correspond with the companies.
Shares arising out of bonus, split, consolidation, merger etc. are automatically credited

into the demat account of the investor.

Shares allotted in public issues are directly credited into demat account of the applicants
in quick time.

Opening a Demat Account:

To start dealing in securities in electronic form, one needs to open a demat account with a DP of
his choice. An investor already having shares in physical form should ensure that he gets the
account opened in the same set of names as appearing on the share certificate; otherwise a new
account can be opened in any desired pattern by the investor.

Opening a Demat Account

Documents to be attached

Getting started
1. Choose a DP

1. Passport size photographs

2. Fill up an account opening form

2. Proof of residence (POR) - Any one of

provided by DP, and sign an agreement

Photo Ration Card with DOB / Photo

with DP in a standard format prescribed

Driving License with DOB / Passport

by the depository.

copy / Electricity bill / Telephone bill

3. DP provides the investor with a copy of

3. Proof of identity (POI) - Any one of

the agreement and schedule of charges

Passport copy / Photo Driving License

for his future reference.

with DOB / Voters ID Card / PAN

4. DP opens the account and provides the

investor with a unique account number,
also known as Beneficiary Owner
Identification Number (BO ID).

Card / Photo Ration Card with DOB

4. PAN card

Note:

The agreement required to be signed by the investor details the rights and duties of the

investor and DP.

DP may revise the charges by giving a 30 days prior notice. SEBI has rationalized the
cost structure for isation by removing account opening charges, transaction charges for
credit of securities and custody charges, effective from January 28, 2005.

Re materialisation process:
Rematerialisation is a process of converting electronic holdings of investor back into share
certificates in paper form. The process of rematerialisation is also carried out through DP and
the process has to be completed within a period of 30 days. Thus, once security is
dematerialised it is not necessary that investor is to continue in depository mode for all times
to come. He can switch over to remat whereby he gets back physical possession of security
scripts. The client of DP has to submit a request for remat. This request is forwarded for
necessary action to depository. The depository confirms the rematerialisation request to the
Registrar and Transfer Agents. The Registrar updates the accounts and prints the desired
certificate. The depository is informed by Registrar and certificate is sent to the investor. The
depository updates its records and communicates to DP to incorporate necessary changes in
the account of the client.

National Securities Depository Limited:

In a span of about nine years, investors have switched over to electronic [demat] settlement and
National Securities Depository Limited (NSDL) stands at the centre of this change. In order to
provide quality service to the users of depository, NSDL launched a certification programme in
depository operations in May 1999. This certification is conducted using NCFM infrastructure
created by NSE and is called "NSDL - Depository Operations Module". The programme is aimed
at certifying whether an individual has adequate knowledge of depository operations, to be able
to service investors. Depository Participants are required to appoint at least one person who has
qualified in the certification programme at each of their service centres. This handbook is meant
to help the candidates in their preparation for the certification programme.

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, Unit Trust of India (UTI) - the largest Indian mutual fund and
the National Stock Exchange (NSE) - the largest stock exchange in India, sponsored the setting
up of NSDL and subscribed to the initial capital. NSDL commenced operations on November 8,
1996.

Ownership
NSDL is a public limited company incorporated under the Companies Act, 1956. NSDL had a
paidup equity capital of Rs. 105 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. 25 crore in the year 2000. However, its
net worth is above the Rs. 100 crore, as required by SEBI regulations.
The following organisations are shareholders of NSDL as on March 31, 2005.
1. Industrial Development Bank of India
2. Administrator of the Specified Undertaking of the Unit Trust of India - DRF
3. National Stock Exchange
4. State Bank of India
5. Oriental Bank of Commerce
6. Citibank N.A.
7. Standard Chartered Bank
8. HDFC Bank Limited
9. The Hongkong and Shanghai Banking Corporation Limited
10. Deutsche Bank A.G.
11. Dena Bank
12. Canara Bank
Management of NSDL:
NSDL is a public limited company managed by a professional Board of Directors. The day-today
operations are conducted by the Chairman & Managing Director (CMD). To assist the CMD in
his functions, the Board appoints an Executive Committee (EC) of not more than 15 members.
The eligibility criteria and period of nomination, etc. are governed by the Bye-Laws of NSDL in
this regard.

Bye-Laws of NSDL:

Bye-Laws of National Securities Depository Limited have been framed under powers conferred
under section 26 of the Depositories Act, 1996 and approved by Securities and Exchange Board
of India. The Bye-Laws contain fourteen chapters and pertain to the areas listed below:
1. Short title and commencement
2. Definitions
3. Board of Directors
4. Executive Committee
5. Business Rules
6. Participants
7. Safeguards to protect interest of clients and participants.
8. Securities
9. Accounts/transactions by book entry
10. Reconciliation, accounts and audit
11. Disciplinary action
12. Appeals
13. Conciliation
ArbitrationAmendments to NSDL Bye-Laws require the approval of the Board of Directors of
NSDL and SEBI.
Business Rules of NSDL
Amendments to NSDL Business Rules require the approval of NSDL Executive Committee
andfiling of the same with SEBI at least a day before the effective date for the amendments.
Functions:

NSDL performs the following functions through depository participants:

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 securities traded on the exchanges.
Carries out settlement of trades not done on the stock exchange (off-market trades).
Transfer of securities.
Pledging/hypothecation of dematerialised securities.
Electronic credit in public offerings of companies or corporate actions.
Receipt of non-cash corporate benefits like bonus rights, etc. in electronic form.
Stock Lending and Borrowing.

Services Offered by NSDL:

NSDL offers a host of services to the investors through its network of DPs:

Maintenance of beneficiary holdings through DPs

Dematerialisation
Off-market Trades

Settlement in dematerialised securities

Receipt of allotment in the dematerialised form
Distribution of corporate benefits
Rematerialisation
Pledging and hypothecation facilities
Freezing/locking of investor's account
Stock lending and borrowing facilities

Fee Structure of NSDL

NSDL charges the DPs and not the investors directly. These charges are fixed. The DPs in turn,
are free to charge their clients, i.e., the investors for their services. Thus, there is a two tier fee
structure.
Inspection, Accounting and Internal Audit
NSDL obtains audited financial reports from all its DPs once every year. NSDL also carries out
periodic visits to the offices of its constituents - R&T agents, DPs and clearing corporations to
review the operating procedures, systems maintenance and compliance with the Bye-Laws,
Business Rules and SEBI Regulations.
Additionally, DPs are required to submit to NSDL, internal audit reports every quarter. Internal
audit has to be conducted by a chartered accountant or a company secretary in practice.
The Board of Directors appoints a Disciplinary Action Committee (DAC) to deal with any matter
relating to DPs clients, Issuers and R&T agents. The DAC is empowered to suspend or expel a
DP, declare a security as ineligible on the NSDL system, freeze a DP account and conduct
inspection or call for records and issue notices.
If a DP is aggrieved by the action of the DAC, it has the right to appeal to the EC against the
action of the DAC. This has to be done within 30 days of the action by DAC. The EC has to hear
the appeal within two months from the date of filing the appeal. The EC has the power to stay the
operation of the orders passed by the DAC. The information on all such actions has to be
furnished to SEBI.
Settlement of Disputes:
All disputes, differences and claims arising out of any dealings on the NSDL, irrespective of
whether NSDL is a party to it or not, have to be settled under the Arbitration and Conciliation
Act 1996.

Technology and Connectivity in NSDL

System View of NSDL Depository System:

Account holders (investors) open account with the DPs. The account details, entered in a
computer system maintained by Depository Participants called DPM, are electronically conveyed
to the central system of NSDL called DM. Companies who have agreed to offer demat facility to
their shareholders use a computer system called DPM (SHR) to connect to the NSDL central
system. DPM (SHR) may be installed by the company itself or through its R&T Agent. This
system is used to electronically receive demat requests, confirm such requests or to receive
beneficial owner data (Benpos) from the depository. Stock exchanges receive pay-in (receiving
securities against sales made by brokers) or to payout (giving securities to brokers against their
purchases) using a computer system connected to NSDL called DPM (CC).
All the computer systems installed by DPs (DPM-DP), companies (DPM-SHRs), and stock
exchanges (DPM-CC) are connected to NSDL central system (DM) through V-SAT (very small
aperture terminal) or leased lines. These are collectively called Business Partner Systems. Any
transaction conducted by any computer system in the NSDL depository system which is targetted
to reach any other computer system first gets recorded in DM and then will reach the target. No
two business partners' systems can communicate to each other without passing through the DM.
Maintenance of Accounts at the Central System:
The NSDL central system known as DM maintains accounts of all account holders in the
depository system. All the transactions entered at any point in the computer system connected to
it are first effected in the central system and subsequently at these computers. Thus, the central
system of NSDL has the records of all details of every transaction conducted in the depository
system.
Distributed Database:
Each of the computer systems connected to NSDL system has its own database relating to its
clients. This helps in giving prompt and accurate service to the clients. However each of the
databases is reconciled with the data at the central system everyday in order to ensure that the
data in the distributed database tallies with the central database.
Common Software:
NSDL develops software required by depository participants, companies, R&T Agents and
clearing corporations for conducting depository operations. Thus, the computer systems used by
all the entities will have common software given by NSDL. However, depending on the business
potential, branch networks and any other specific features, DPs may develop software of their

own for co-ordination, communication and control and provide service to their clients. Such
exclusive software is called "back office software". DPM system given by NSDL gives "export
and import" facility to take out the transaction details to be used by back office software and to
feed in transaction details generated from the back office software.
Connectivity:
The computer system used by DPs, companies, R&T Agents and stock exchanges may be
connected to NSDL central system through V-SAT network or leased line network. NSDL uses
NSE's V-SAT network for the connectivity purposes. Thus, V-SATs used by NSE brokers can
connect to NSDL if the software supplied by NSDL is used. V-SAT uses satellites for
communication purposes. Some business partners may connect using leased lines provided by
MTNL/ BSNL. V-SAT or leased line connections are called primary connectivity. If primary
connectivity fails for any reason, BPs must have the ability to connect through other means. Such
other means are PSTN lines, ISDN lines, POP lines(normal telephone lines) through which they
can dial in to the NSDL system and conduct their transactions.
NSDL Facts & Figures:
As on January 31, 2016
Number of certificates eliminated (Approx.)
Number of companies in which more than 75% shares are

2092 crore

6267
dematted
Average number of accounts opened per day since November 1996 3590
Presence of demat account holders in the country
89% of all pin codes in the country

Central Depositary Securities Limited:

A Depository facilitates holding of securities in the electronic form and enables securities
transactions to be processed by book entry by a Depository Participant (DP), who as an agent of
the depository, offers depository services to investors. According to SEBI guidelines, financial
institutions, banks, custodians, stockbrokers, etc. are eligible to act as DPs. The investor who is
known as beneficial owner (BO) has to open a demat account through any DP for
dematerialisation of his holdings and transferring securities.

The balances in the investors account recorded and maintained with CDSL can be obtained
through the DP. The DP is required to provide the investor, at regular intervals, a statement of
account which gives the details of the securities holdings and transactions. The depository
system has effectively eliminated paper-based certificates which were prone to be fake, forged,
counterfeit resulting in bad deliveries. CDSL offers an efficient and instantaneous transfer of
securities.
CDSL was promoted by Bombay Stock Exchange Limited (BSE) jointly with leading banks such
as State Bank of India, Bank of India, 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

Honourable Union Finance Minister, Shri Yashwant Sinha flagged off the operations of

CDSL on july 15,1999.

Settlement of trades in the demat mode through BOI Shareholding Limited, the clearing

house of BSE, started in july 1999.

All leading stock exchanges like the National Stock Exchange, Calcutta Stock Exchange,
Delhi stock Exchange, The Stock Exchange, Ahmedabad, etc have established

connectivity with CDSL.

As at the end of Dec 2007, over 5000 issuers have admitted their securities (equities,
bonds, debentures, commercial papers), units of mutual funds, certificate of deposits etc.
into the CDSL system.

Shareholders of CDSL:
CDSL was promoted by Bombay Stock Exchange Limited (BSE) in association with Bank of
India, Bank of Baroda, State Bank of India and HDFC Bank. BSE has been involved with this
venture right from the inception and has contributed overwhelmingly to the fruition of the
project. The initial capital of the company is Rs.104.50 crores. The list of shareholders with
effect from 11th December, 2008 is as under.
A professional Board of Directors with vast and varied experience in capital markets and banking
is at the helm of affairs at CDSL.

Directors

Shri T. S. Krishna MurthyChairman

Former Indian Revenue Service officer and the Chief Election Commissioner of India

Smt. Jayshree VyasDirector

Managing Director
Shree Mahila Sewa Sahakari Bank, Ahmedabad

Shri R. M. MallaDirector
Former Chairman & Managing Director- IDBI Bank Ltd

Shri A. KrishnakumarDirector
Former Managing Director, International Banking Group, State Bank of India

Shri V. BalasubramaniamDirector
Chief Business Officer
BSE Limited

Shri C. Venkat NageswarDirector

Deputy Managing Director
State Bank of India

Shri Ananth Narayan GDirector

Regional Head, Financial Markets - South Asia
Standard Chartered Bank

Shri Nehal VoraDirector

Chief Regulatory Officer
BSE Limited

Shri P. S. ReddyManaging Director & CEO

Management Team

Shri P. S. ReddyManaging Director & CEO

Shri Cyrus KhambataExec. VP(On deputation to subsidiary as MD)

Shri Joydeep DuttaGroup Chief Technology Officer

Shri Jitendra ChadVice President Information Technology

Shri Vishwas NagleVice President Information Technology

Shri Suresh AhirekarVice President Information Technology

Shri Prithwijit DindaVice President Information Technology

Shri S.V.A.N. AcharyuluVice President Information Technology

Smt. Nayana OvalekarSenior Vice President Operations

Shri Bharat ShethSenior Vice President &

Chief Financial Officer

Shri Ramkumar K.Senior Vice President New Projects & Insurance Repository matters

Shri Sunil AlvaresSenior Vice President Business Development & Admission Cell

Shri Yogesh KundnaniVice President Business Development

Shri Farokh PatelVice President Audit, Inspection & Compliance

FEE STRUCTURE OF CDSL

CDSL fees structure to its depository participants is as follows:
SR.NO.
1
2

Details of Charges
Account Opening Charges
Account Maintenance Charges

CDSL
NIL
NIL for individuals
Rs.500/- p.a. to Corporates

Transaction Charges

Market & Off-Market

Transaction Charges Clearing

Flat charge of Rs.500/- per month on CM accounts

5
6
7

Member Accounts
Custody Charges
Demat Charges
Remat Charges

for pay-in and pay-outs received from CH

NIL
NIL
Rs.10/- per 100 securities or part quantity or

Pledge/Hypothecation Charges

Rs. 10/- per cert. whichever is higher.

Pledge acceptance - Rs.12/- per request.

Rs.6/-

**

Unpledge acceptance - Rs.12/- per request.

9
10

Internet Facility 'easi'

Internet Facility 'easiest'

Pledge Invocation Acceptance -Nil

Rs.20,000/- one time for registration
Rs.30,000/- one time for registration Rs.1,150/-p.a.
for renewal of digital signature

For Main DPs: Rs.5,000/- per month or the amount of the actual bill for a given month
whichever is higher.
For DP-Branches: Rs.5,000/- per month or the amount of the actual bill for a given month
whichever is higher.
Fees for Clearing Members
CDSL collects only Rs. 500/ - per month from its DPs for a CM except for CM Investors
Securities Account.
The following tariff structure will be effective from Thursday , April 01, 2010.

Monthly Transaction bill amount

Rate per

(@Rs.6/-per transaction)

Debit Transaction

(in Rs.)

(in Rs.)

More than Rs.15 lakhs

4.25

More than Rs.4 lakhs and upto Rs.15 lakhs

4.50

More than Rs.1 lakh and upto Rs.4 lakhs

5.00

Upto Rs.1 lakh

5.50

DATA ANALYSIS AND FINDINGS

The analysis of collected facts and figures through questionnaire is detailed as under:

QUES. 1: Do you know about depository system?

ANS:
Options

No. of respondent

Yes

94%

No

06%

6%

yes
no

94%

Inference: From the sample size of 100, 90 respondents know about depository system .

Ques.2: Do you have demat account?

Ans:

no. of respondent

Yes

70%

No

30%

30%
Yes
No
70%

Inference: From the sample size of 100, 70 respondents having their depository account.

Ques.3: Do you satisfied with the fee structures of Depository Participant?

Ans :

Options

No. of respondent

percentage

Yes

30

50%

No

22

31%

Up to some extent

18

19%

No. of respondent

Yes

18
30

No
Up to some extent

22

Inference: out of 70 respondents, 50% respondents are satisfied,31% are not satisfied and
19% respondents are satisfied upto some extent with the fees structure of Depository Participant

Ques.4: What were the criteria for choosing the DP:

Ans:
Options

No. of respondent

percentage

Distance convenience

17

24

Service level

22

31

Charges

20

28

Reputation

11

17

No. of respondent
11

17

Distance convenience
Service level
Charges
Reputation

20
22

Inference: There is a close response from the respondents,31% respondents are choosing their
DP from the services provided by them and 28% are choosing by the charges.

Ques.5: Do you have individual account or with company?

Ans
Types

No. of respondent(%age)

Individual

40%

Company

60%

No. of respondent(%age)

individual
40%

company

60%

Inference: It shows that 60% respondent having account with company while 40% respondent
having individual account .

Ques.6: Who can make a request for the demat of the security?
Ans :
Types

No. of respondent

%age

Company

10

Registered holder of the company

29

43

Depository

15

20

Depository participant

19

27

No.of respondent
Company

Registered holder of
the company

19

Depository
29
15

Inference:

Depository participant

Ques.7 : Is there any grievance to parties for NSDL?

Ans :
Options

NO. OF RESPONDENT
30%

YES
NO

70%

NO. OF RESPONDENT

30%

YES
NO

70%

Inference: It shows that 30% respondent having grievance to parties for NSDL while 70% having
not.

Ques.8: How much time period is given to the parties to resolve their grievances for NSDL?
Ans:
DAYS

NO. OF RESPONDENT

PERCENTAGE

30 DAYS

15

21%

21 DAYS

34

48%

45 DAYS

15

22%

25 DAYS

9%

NO. OF RESPONDENT
6

15

15

30 DAYS
21 DAYS
45 DAYS
25 DAYS

34

Inference: 48% respondents replied for the ii) option which is right.

Ques.9: In case of partnership firm account will be open in the name of:
ANS:
OPTIONS
MAXIMUM
PARTNER

NO. OF RESPONDENT
HOLDING 37

%AGE
39

ANY AUTHORIZED PARTNER

36

37

FIRM

27

24

Chart Title

firm; 24%
maximum holding partner; 39%

any authorised partner; 37%

Inference: The respondents are also not too much aware about this question; the percentage of
any authorized partner is less than the percentage of maximum holding partner

QUES.10: From which depository participant you make trading?

a)
b)
c)
d)
e)

Sharekhan
India bulls
Reliance
ICICI direct.com
Others

Sharekhan

07

India Bulls

11

Reliance

14

ICICI direct.com

08

Others

10

Chart Title
Sharekhan

10

India Bulls
Reliance
11

14

ICICI direct.com
others

QUES.11: If your selected trading company increases their annual charges will you go with it?
Ans:
YES

02

NO

29

IF CHARGES ARE
REASONABLE

19

QUES.12: According to you which one is the most important factor for trading company to
enhance loyalty and customer?
A)
B)
C)
D)

Provide maximum profit

Provide tips time to time
No hidden charges
Other factors
Provide maximum profit

17

Provide tips time to time

08

No hidden charges

18

Other factors

07

Ques13: Preferred Portfolio by Investors

Ans:
Portfolio

No. of Investors

Equity

46%

Debt

17%

Balanced

37%

No. of Investors

Equity
Debt

37%

46%

Balanced

17%

From the above graph 46% preferred Equity Portfolio, 37% preferred Balance and 17% preferred
debt portfolio.

FINDINGS

1.
2.
3.
4.
5.
6.

It is found that the most of people know about depository system.

It is found that the many people have their demat account.
It is found that the many people have an account with company.
It is found that most of parties have no grievances for NSDL.
It is found that many people know about the demat securities.
It is found that many people disagree with the increasing the annual charges of trading

company.
7. It is found that many customers dont want hidden charges for trading company.
8. It is found that many investors preferred the equity portfolio.

CONCLUSION

To conclude, it can be said that the research findings clearly reveal the goodwill and reputation of
depository system among the customers. But there is a need to strengthen this depository system
by spreading awareness about the services offered by NSDL, CSDL and its trading companies
through advertisement and by expanding the more branches of this system all over the country
and also by tapping the potential customers through innovative means.