ACKNOWLEDGEMENT

With deep consent and pleasure, I would like to express my gratitude to all those who helped me in the preparation of this project report. Without their cooperation the work would not have been possible. First of all I wish to express my profound gratitude on sincere thanks to ManagerSHCIL, Shimla who gave me an opportunity to undertake training in this organization. I am thankful to Mr.Harmandeep Singh Sabbharwal or providing me guidance and the necessary information to complete my project. I will always be obliged to him for the knowledge that he shared with me and experience that I gained while working with him. I am thankful to all the employees of SHCIL, Shimla for their whole hearted and mobilizing behavior in making my training a real success. Thanks to all of them. I would like to thanks my parents and all my friends who helped me in preparing this project. Last, but not least, I would like to thank all those people who contributed directly or indirectly towards the completion of my project by providing relevant information and sharing their experience required by me.

PRIYA SHARMA

DECLARATION
I hereby declare that this summer training report submitted to the college in partial fulfillment of the requirement of Master Of Business Administration (M.B.A) of H.P institute of management studies, Shimla is based on primary and secondary data found by me in various departments, books, magazines and websites under the continues guidance and cooperation of our college faculty members and branch manager of SHCIL Shimla.

PRIYA SHARMA

CONTENTS CHAPTER
1

TITLE
Company profile/ Introduction
executive summary Introduction History Company Overview

PAGE NO

Organizational Structure
Registered Office Name & Description of promoter Objective of company Mission Vision Strategy SHCIL Board of Director

Product Offered By SHCIL

Add Share Equibuy Fund Investment GOI Bonds Insurance Stock Market Pension Fund

Service Offered By SHCIL

Custodial Service Depositing Participant Service Demat Derivative Service Clearing Service NRI

SWOT Analysis
Strength Weakness Opportunity Threat

Why SHCIL?
Why Customer Chose SHCIL? Value of SHCIL Capital Structure of SHCIL

7 8 9 10 11

Analysis
Customer View Regarding SHCIL Conclusion Annexure
Data base Survey

BIBLIOGRAPHY

CHAPTER-1 EXECUTIVE SUMMARY

This program is like a window to corporate world. The company provided this platform where we get the ample opportunities to learn more about life, skill and implement them. The security markets are in the process of an ongoing revolution, as evidenced by the internationalization of trading, introduction of a variety of instruments, and from improved communication abilities. INVESTMENT MANAGEMENT: Securities Analysis and portfolio management describes techniques, Finance vehicles, and strategies for planning,Implementing, and overseeing the optimal allocation of the funds of and investor(s) or an institution(s) in the changing investment environment. Stock Holding Corporation of India Ltd. (SHCIL) was promoted by the public financial institutions and incorporated as a limited company on July 28, 1986. SHCIL provides post trading and custodial services to institutional services and mutual funds, banks, insurance companies and retail investors. SHCIL is also Indias largest depository participant providing depository services to a large number of clients. SHCIL has 203 offices/facilitation centers across the country. SHCIL has received No Action Letter from the securities exchange commission, USA under section 17(f) of the US Investment Company 6

Act, 1940 and rule 17f-5 framed there under, which enables it to grow at custodial and related services to US-based funds as well. With the introduction of depository system in the country, SHCIL commenced offering depository related services to the retail segment and over the last few years, it has come to acquire the stature of being one of the largest depository participants besides being the countrys largest custodial. This project is divided into three sections: Section A consists of Introduction and profile of the company. Section B consists of analysis and project of SHCIL. Section C deals with suggestion and conclusion.

INTRODUCTION
Stock Holding Corporation of India Ltd. (SHCIL) was promoted by the public financial institutions and incorporated as a limited company on July 28, 1986. SHCIL provides post trading and custodial services to institutional services and mutual funds, banks, insurance companies and retail investors. SHCIL is also Indias largest depository participant providing depository services to a large number of clients. SHCIL has 203 offices/facilitation centers across the country. It is owned by the India's leading Banks and Financial Institutions such as: Industrial Development Bank of India (IDBI) Industrial Credit and Investment Corporation of India (ICICI) Specified Undertaking of the Unit Trust of India (SU-UTI) Industrial Finance Corporation of India (IFCI) Life insurance Corporation of India (LIC) General insurance Corporation of India (GIC) New India Assurance Company Limited (NIA) National Insurance Corporation Limited (NIC) United India Insurance Corporation Limited (UIC) TOICL

HISTORY
HISTORY OF PROMOTERS AND COMPANY Stock Holding Corporation of India Ltd. was incorporated at the special initiative of Government of India, as a public limited company as per the Companies Act, 1956, in the year 1986, to take up the specialized activity of providing world class custodial services in India. After Harshad Mehta SCAM SHCIL was endowed with the responsibility of dematerialization of securities to avoid any such mis-endeavour by any individual and entity in future and SHCIL was critical in stream lining of share market. With the introduction of the depository system in the country, SHCIL commenced offering depository related services to the retail segment and over the last few years, it has come to acquire the stature of being one of the largest Depository Participants, besides being the countrys largest and premier custodian. It is owned by the Indias leading Banks and Financial Institutions such as: IDBI Bank SU-UTI LIC NIA UIC 9 ICICI Bank IFCI Ltd GIC NIC TOICL

COMPANY OVERVIEW
Stock Holding Corporation of India Limited provides custodial, post trading, and depository participant services in India including DP services for disinvestment of various PSUs. It offers securities services, such as custodial, clearing and settlement, electronic and physical safekeeping, F&O clearing, asset servicing, and premium offerings; and depository participant services, including account opening, modification of clients details processing settlement and non-settlement related transactions, execution of pledge instructions, and demat of securities. The company also provides e-stamping, share broking, and collateral and risk management services. In addition, it offers various financial products ranging from fixed income investments, such as FDs, bonds, debentures, and capital gain bonds to variable income products, including initial public offerings (IPOs) of equities and mutual funds; life insurance services; IPO services; loans against securities; GOI bonds; and western union money transfer services. E-stamping The company serves financial institutions, insurance companies, mutual funds, foreign institutional investors, banks, Indian and foreign venture capital companies, foreign venture capital companies, funds, PF trusts, and corporates. It operates a network of 203 offices/facilitation centers. Stock Holding Corporation of India Limited was incorporated in 1986 and is based in Mumbai, India.

10

CHAPTER-2

REGISTERED OFFICE:
Mittal Court, B Wing, Second floor, 224, Nariman Point, Mumbai-400021.

NAME AND DESCRIPTION OF PROMOTERS:

SHCIL has been jointly promoted and is owned by the all India Financial Institutions namely: Industrial Development Bank of India (IDBI) Industrial Credit and Investment Corporation of India (ICICI) Specified Undertaking of the Unit Trust of India (SU-UTI) Industrial Finance Corporation of India (IFCI) Life insurance Corporation of India (LIC) General insurance Corporation of India (GIC)

11

OBJECTIVE OF COMPANY
To maintain the position of market leader in various financial products and services offered by Stock Holding Corporation of India Ltd.

MISSION
To be a world class-class technology has driven and client focused market leader in financial and technical services.

VISION
To be market leader with the help of IT driven services and technology based wider product range.

STRATEGY
Embracing most advanced next generation technology and providing better financial service solute

12

SHCIL BOARD OF DIRECTORS BOARD OF DIRECTORS

SanjeevGhai S C Jain S. Viswanathan N. Balasubramanian G. M. Ramamurthy AnupBagchi Siby Antony A. R. Sekar

Director Company Secretary Statutory Auditors Internal Auditors System Auditors

R K BansalWholetime Shashikant L Nayak M/s. Kalyaniwalla&Mistry M/s. Sridhar &Santhanam M/s. AAA Technology Pvt. Ltd M/s. Miel-e Securities Pvt. Ltd.

13

CURRENT MANAGEMENT TEAM

Director Executive Vice President Executive Vice President Sr. Vice President Sr. Vice President Sr. Vice President Sr. Vice President Sr. Vice President Vice President Vice President Vice President Vice President Vice President Regional Managers Region D. R. K Jagannath Latika Roy South 14 AP & Goa Karnataka R K BansalWholetime R H Mewawala L Viswanathan K S Iyenger ManojBorkar J S Narang JaipalMenon Dinesh Shah S M Sawant UmeshPunde K V Ganapathy V Sriram B. Krishna Moorthy

S. Radhakrishnan UmeshPunde PrabhatDubey MeenaPednekar Ajay Sharma AmitDassi Arup Bagchi R. Ravikumar R. Anand

South 2 Maharashtra Gujarat Mumbai North West North East North East Central

15

Chapter-3 PRODUCTS OFFERED BY SHCIL

(A) LADS (LOAN AGAINST DEMATRERILAISED SECURITIES) SHARES SHCIL arranges loan against DEMAT shares. Tie-up with reputed banks which offer you the most Competitive interest rates in the market. You can use the shares in your free account as collateral and take a loan from any of our empanelled banks. SHCIL completes your documentation and processing and gives you a cheque within 48 hours of application. This is a pure value add to your depository account with us. Add shares are available at SHCIL centers in the entire major Cities.

Feature: Loan against DEMAT shares held in the DP account with SHCIL. Competitive interest rates from a range of banks SHCIL has Tied up with. SHCIL processes the entire paperwork required with the Bank. 16

 The service is available at any of over 100 branches of SHCIL.

(B) EQUIBUY:Even after payments have been made we have to wait patiently to see those shares reflected in the DEMAT account. With the odd surprise of not seeing them at all which you cannot discount! As your depository participant SHCIL assures you safe delivery of shares every time you buy on the exchange. We have lined up a panel of reputed brokers who process your orders on priority. Our positions as the clearing corporations of leading stock Exchanges ensure smooth and sure credits in your account. An initial advance and timely replenishments into the purchase Advance account takes care of the payment for your purchases. Go through the detailed EQUIBUY procedure and you will see how EQUIBUY in a one stop shop for your share purchases.

17

FEATURES : An EQUIBUY instruction from you gets the shares credited into your account the next day of payout. Payment for your purchase made from a running account called purchase advance into which you remit an initial advance of Rs. 1000 and maintain a minimum balance of Rs 250 at all times.

Choose one or more brokers from a list of 77 brokers empanelled with SHCIL. Registration with broker is not necessary if you are already registered under any of our other product schemes. Purchase on BSE or NSE.

(C) FUND INVESTMENT Fund invest is a basket of financial products ranging from fixed income securities like fixed deposits, infrastructure bonds and capital gain bonds to variable income securities like initial public offers (IPOs) of equities and mutual funds. It is an attempt to offer financial products that that cater to the various investment needs of our esteemed clients. An effort to guide the investor to a product portfolio that best suits his risk-return profile. Applications for investments can be 18

sourced from any of the SHCIL offices. Apart from guiding our investors to pick up the right combination of investment instruments we help them in after-sales service by acting as an interlocutor between the investor and the issuer of the securities. SHCIL is an AMFI registered mutual fund advisor (ARMFA).

FEATURES:At present, SHCIL is distributing schemes of 28 different mutual funds. All these funds offer a wide variety of investment option depending on the risk appetite of the investor. Some of the major categories are: Debt funds: The debt funds have the mandate of investing primarily in debt papers. Equity funds: The equity funds have the mandate of investing primarily in equities. Balanced funds: The balanced funds have the mandate of investing both in equities as well as debt papers. Capital gain bonds come under 54EC capital gains bonds, where the investors get exemption from capital gain tax. These are ontap issues. At present, SHCIL is distributing capital gain bonds of rural electrification corporation, national housing bank, small industries development bank of India and national highway

19

Authority of India. Infrastructures bonds are issued by ICICI bank and IDBI, with section 88 as the main feature. Private placements: debt papers issued for private placement With structural obligations by the state and central government typically targeted for trusts and provident funds are distributed by stock holding. Fixed deposits: fixed deposits with high investment rating and issued by blue-chip corporate are distributed by us. These papers generally offer 50 to 100 basis points more than bank fixed deposits of comparable period. At present, we are distributing IDBI SUVIDHA fixed deposits and HDFC fixed deposits. Initial Public Offer: IPOs offered by blue-chip corporate can be subscribed from stock holding. Issues recently distributed by us are Canara Bank, Allahabad Bank, Bharti Tele and I-Flex

(D) GOI BONDS:Savings bonds are issued by RBI on behalf of government of India in the following series: 8.0% taxable bonds: These bonds are held in electronic form in an account called bond ledger account (BLA). Bond ledger accounts can be opened and operated with RBI designated receiving offices. SHCIL has been designated as one of the receiving offices by RBI for this 20

purpose. Subscriptions for savings bonds can be submitted at any of our branches. Savings bonds being sovereign in nature are absolutely safe and an attractive investment option in the current volatile market situation. Feature: Investment Limit: Minimum investment is Rs.1000 and there is no maximum limit Interest Option Payable half yearly on 1st Feb, 1st Aug or cumulative on maturity. Tax BenefitsInterest is taxable under IT Act 1961. Exempt from Wealth Tax under Wealth Tax Act 1957 TransferabilityNon-transferable, non-tradable and cannot be used ascollateral for borrowings NominationAvailable. Only sole holder or surviving holder cannominate Repayment: Repayable on expiry of 6 years from date of issue. Nointerest would accrue after maturity

(E) INSURANCE SHCIL, a company promoted by insurance majors and financial institutions, is a corporate agent of LIC for life insurance products and NIA for general insurance products. SHCIL has a

21

Dedicated team of IRDA certified insurance advisors to provide all services relating to insurance. We also provide free professional advice to clients on need base insurance. SHCIL has 100 odd branches all over India to take care of all your insurance related queries and needs. FEATURES An insurance policy compensates you against the financial impact that can arise following loss, damage of destruction of your property (such as home or vehicle) or your health or life. A fundamental principle of insurance is to put you in the same financial position after a loss or accident that you enjoyed before the loss. This is relatively easy with repair or replacement of (say) a car, but is much more difficult with the loss of life. The insurance policy is a contract and like any contract contains clauses and conditions. Claims are settled in accordance with the conditions detailed in the policy.

22

(F) STOCK DIRECT:From your desktop you can now send instructions for buying/selling shares. A three way hands shake between leading brokers, national and international banks and Stock direct has changed the way you look at trading in securities. SHCIL is the crux of stock direct. Stock direct Indias first online trading platform was launched in 1999. Today stock direct is the most secure online trading platform which combines encryption technology/digital signature features. A few clicks will seamlessly check your funds and security positions, route the order to the broker of your choice and do the necessary fund and share movements for you. FEATURES: A single instruction enables you to combine your trading, fund and shares transfer with SHCIL taking care of the settlement. Trade from home on the internet with floppy containing stock direct software. Security measures based on encryption and digital signature technology make your online deals 100% secure. Open a purchase advance account with SHCIL to facilitate your fund transfers. 23

 Choose the exchange to trade from BSE and NSE.

(G) PENSION FUNDS:SHCIL offers pension fund administration services to pension fund trusts. The pension fund scheme administered by the trust could be a defined benefit or a defined contribution scheme. For both the scheme types, SHCIL offers the entire range of services that include design, development and maintenance of a customized pension FEATURES : Services Offered to a Defined Contribution Scheme Coordination with all client locations/branches for receipt of monthly contribution data of members. Pension contribution account maintained at individual member level. Reconciling contributions with remittance amounts. Settling members claim on separation. Liaoning with insurer for purchase of annuity.

Handling disbursements to members on commutation. 24

Distribution of earnings to eligible members, annually. Providing account statement to members annually. Maintain books of accounts of the trust. Handling audit and filing tax returns. Services offered to a defined benefit scheme Service records of members maintained in electronic form. System generated pension orders, uniquely referenced and supported by necessary documents. Tracking pension orders during the period of survival of member. Updating of software to incorporate changes taking from time to time in pension rules and regulations.

25

Chapter-4

SERVICES OFFERED BY SHCIL

(A) CUSTODIAL SERVICES: SHCIL provides first-rate custodial services to Indias leading Financial Institutions, Insurance Companies, Mutual Funds, Foreign Institutional Investors (FIIs), Banks, Indian and Foreign Venture Capital Companies, Funds, PF Trusts & Corporate. SHCIL,s core competence in custodial business spans 18 years, with a dedicated pool of trained and experienced professionals working literally round the clock using state-of-the-art computer systems and world class technology. SHCIL maintains dedicated communication channels, well connected to client institutions, stock exchanges, clearing houses and depositories, thus maintaining process and quality leadership. As a custodian entrusted with sizable assets, SHCIL is continuously leveraging its scale and capabilities to help its clients mitigate risk and optimize efficiencies with greater control. 26

(1)POST TRADING SERVICES

SHCIL has specially trained personnel handling thousands of trade instructions involving large values on sophisticated systems using digital signature on STP (straight
through processing) systems, ensuring smooth

trade confirmations to stock exchanges. SHCIL provides the choice of multiple STP service provides enabling competitive advantage of efficient settlements. SHCIL seamlessly monitors trades and ensures failed trade management with reporting and resolution of mismatches, etc. At SHCIL, a client has the flexibility of settlement of funds through a wide panel of banks having RTGS facility.
(2)SETTLEMENT SERVICES

Most of the institutional trades are settled through the clearing house of the stock exchanges. As a custodian, SHCIL facilitates timely settlement of funds and securities. Funds are collected /deposited

27

From/to client and settled with the clearing houses. Most of the institutional trades are settled in the depository mode. For the institutional segment alone, SHCIL has a unique clearing code on the two principal stock exchanges and separate DPM units on both NSDL and CDSL. This ensures smooth settlement of transactions on both exchanges/depositories, based on the deliverables and receivables received by them for each settlement. Daily verification of settlements (auction/normal) facilitates smooth reconciliation of settlements of clients trades and mitigates systemic risk. For debt market deals SHCIL ensures timely movement of securities and funds. For the occasional delivery and receipt of securities in the physical mode, SHCIL ensures prompt scrutiny, processing and lodgment of securities with the respective company/ registrar and transfer agent, with

28

The objective of final transfer to the purchaser, with objections handling if needed. SHCIL also ensures that delivery of physical securities to exchanges is handled strictly as per exchange regulations.

(3)PHYSICAL CUSTODY (VAULT) SERVICES:

SHCIL has extensive vault capacity with state-of-the-art technology. This includes tracking with bar-coding techniques. Certificates are held in customized, fire resistant modular sliding storage units, with automated location tracking and logs with tight security. There are comprehensive document tracking and storage systems in place to hold investments in physical and electronic form. SHCIL tracks each and every security in the custody with absolute ease and tracks the status of investments at any point of time. Other security features include circuit TV, smoke detectors and fire extinguishers which are installed in the premises.

29

SHCIL relies on audit trials and physical reconciliation continuously to reconfirm validity of systemic data. SHCIL also periodically seeks reconfirmations from internal and statutory audit firms for adherence to the established best practices.
(4)DP SERVICES:

SHCIL has installed dedicated DPMs (depository participant modules) on both the depositories, viz. NSDL and CDSL. A dedicated institutional DP team at SHCIL addresses your need for all core DP services like account opening and maintenance, conversion of physical holdings into electronic form, settlement of trade instructions, re-materialization, repurchase and pledge instructions, providing of holding and transaction statements and daily reconciliation of clients holdings. SHCIL also provides special services like electronic credit and corporate action follow up, reporting of saleable holding positions required by many fund managers, 30

monitoring of CP redemptions, prepayments and providing customized reports like put/call forecasts, logical holdings and nonequity holding reports.
(5)ASSET SERVICING: SHCIL has dedicated teams to handle the various aspects of asset servicing. The corporate actions team ensures forecast of all corporate actions and benefits accruing on a clients holding, timely collection of monetary and nonmonetary benefits and cover all activities relating to a corporate event like calculation of entitlements, reconciling with companies/registrars prior to due date, collection of monetary corporate actions from the premises of company/registrar and transfer of same to clients. In case of any shortage,active follow-up with each company. Customized reporting to clients on the status of corporate actions is done periodically. The primary markets team takes care of applications on behalf of clients for primary market issues, calculates the entitlements, follows up for allotment or refunds and sends customized reports to clients. The dedicated redemptions team tracks the payouts of various debt instruments held by SHCILs clients and monitors put/call options. This team ensures timely monetary collection and deposits and keeps track of the outstanding amounts and reinvestments.

31

specialized Databank team, which is unique to SHCIL. This team tracks over 8500 companies, over 12000 issued securities, 2500 registrars besides all relevant information available in all leading stock exchanges and depositories. The team ensures prompt availability of information on all corporate announcements, ISIN listings, etc. to the custodial teams and the information solely is for the benefit of SHCILs clients. Thus SHCIL is equipped to handle all types of instruments, listed on the BSE and NSE, money market instruments like CPs and CDs, all kind of debt instruments and unlisted securities.

(B) DEPOSITORY PARTICIPANT SERVICES: Our depository participant services address your individual investment needs. With a parentage of leading financial institutions and insurance majors and a proven track record in the custodian business, we have reiterated our past success by establishing ourselves as the first ever and largest depository participant in India. Form a tentative foray in 1998 into the individual investor arena to servicing around seven lakhs accounts, we have endeavored to constantly add and innovate to make business a pleasure for you. 32

Our networked branches ensure we are available where you look out for us. Fourteen depository Participant machines (DPMs) connected to NSDL and seven connected to CDSL ensure fast and direct processing of your instructions. Our customer-centric account schemes have been designed keeping in mind the investment psyche of our clients. Your DP account with us takes care of your depository needs like dematerialization, re-materialization and pledging of shares. Matching of your scanned signature on every debit instruction with a digitally scanned original in our system makes all your trading transactions absolutely secure. A proactive backup of tour instructions prior to execution in the depository makes us oblivious to system crashes. At SHCIL we place a very high premium on client reporting. Periodic statements sent to you keep you informed of your current account status. Dedicated customer care lines manned by trained staff answer your queries on DEMAT/trades/holdings. The latest in client response at SHCIL is Interactive Voice Response (IVR) system for round the system for round the clock information on your account. Registration on our website, SHCIL interactive, enables you to 33

check your account related information, stock market reports and statistics, corporate benefits declared by companies, real-time quotes of scrips on BSE and NSE and so much more online.

(C) DEMAT: De-materialization is the process of conversion of shares from physical form to the electronic mode. Our dedicated DEMAT team enable you to convert your physical holdings/debentures/bonds/G-SECS into electronic mode in a quick and hassle free manner.
(1)TRANSPOSITION CUM DEMATERIALIZATION

The clients can get the securities dematerialized in the same account if the names appearing on the certificates match with the names in the DEMAT account but are in different order. This can be done by submitting the certificates along with the transposition form and the dematerialization request form (DRF). (2)TRANSMISSION AND DEMATERIALIZATION

34

In case of death of one or more of the joint folders, the surviving holder(s) can get the name(s) of the deceased deleted from the security certificate and get the same dematerialized.

Notarized copy of the death certificate, transmission form as per annexure OB and the dematerialization request form (DRF) have to be submitted by the surviving joint holder(s) along with the security certificates. (D) DERIVATIVE SERVICES: SHCIL provides clearing services for derivative segment of BSE/NSE and commodity segment of MCX / NCDEX. (E) CLEARING MEMBER SHCILs long standing association with clearing members has enabled it to develop services based on an understanding of their working and their requirement for timely and accurate information. We accept deposits of base capital and additional base capital requirements stipulated by NSE for clearing members trading on its capital market segment. Besides, our new products with a broker empanelment clause ensure a mutually beneficial 35

tie-up. Clearing members stand to earn a steady income from our product transactions and new add to their client base, while we capitalize on their rapports with the market.

We currently offer depository services to more than 680 clearing members of various exchanges connected with NSDL and CDSL. Our customer care lines answer all your DP queries while the Interactive Voice Response (IVR) system gives you information on your account and other valuable data like CC calendar details, tariff, ISIN information, etc. via telephone, fax and e-mail.

(F) NRI: Over the years, SHCIL has grown to become a major player in the capital market. With a network of offices operating across the country with franchisees operating abroad, SHCIL provides depository participant and other services close to 0.7 million satisfied investors out of which over 6000 are NRI clientele. SHCIL has a fully-fledged NRI cell operating specifically to cater needs pertaining to depository 36

account opening and maintenance. NRI cell coordinates with prospective NRI customers,

Collects and assist in obtaining the relevant documents and ensures the depository account is opened hassle free.

NRI cell collects physical certificates to be sent for DEMAT and ensure that the certificates are in order and can be sent for dematerialization under the existing guidelines issued by the depositories. Instruction for trade is accepted by fax on request by NRI cell to ensure timely settlement of trades. In this case later on the client needs to regularize by sending the original trade delivery instruction. Any tariff and billing related query are addressed by NRI cell.

37

Chapter-5

SWOT ANALYSIS
STRENGTH 1. Wide coverage throughout the country. 2. Promoted by 7 financial Institutions. 3. Largest account holders. 4. Largest custodian. 5. Catering to Indians as well as NRIs and FIIs. 6. One stop shop for all financial solutions. 7. Advanced system network OPPURTUNITIES 1. E Broking. 2. Acquisition of smaller DPs. 3. Collaboration with banks. 4. New products WEAKNESS 1. Lack of aggressive marketing. 2. Improper billings. 3. Expensive. (Because separate account has to be opened according to holdings). 4. Less investment in advertising

THREAT 1. Promoters have become competitors with strong brand equity. 2. Increased cost as perceived by customers. 3. Fluctuating market conditions affect the business. 4. To increase business (by opening new branches at ruralurban areas).

38

STRENGTHS:
1.LARGEST DEPOSITPORY PARTICIPANT: SHCIL is at the No. 1 position as depositor participant in all over India. Being a premier custodian SHCIL is currently holding more than 20 million certificates in etude as the largest custodian. SHCIL accounts for more than 50% of institutional business in the country. 2.BACK OFFICE SERVER : For perfection in work SHCIL has back office server facility where all the branches of SHCIL meet their necessary requirements before any information takes place with the NSDL. 3.EXPERIENCE: Stock holding is the oldest organization in custodian business all over India and it has more than 10 years of experience in the field. SHCIL has excellent management and technocrats team to handle workloads and provides the best of services to its customers.

39

4. PROMOTED BY FINANCIAL INSTITUTIONS: SHCIL is promoted by all the major financial institutions in India, i.e. Industrial development bank of India. Life insurance Corporation of India. Oriental insurance co. ltd. Industrial credit and Investment Corporation of India. New India insurance corporation ltd. National insurance corporation ltd. United India insurance co. ltd. It has professionals on its board to look after the business and meet its current and future requirements in the market.

(5)NEW PRODUCTS: SHCIL has offered some new products in the market like E-stamping to meet the customer requirement as well as established benchmark.

40

WEAKNESS:
1. SOME BRANCHES ARE NOT CONNECTED THROUGH VSAT: SHCIL is the largest branch network depository participant in the custodian market but till now some few of the branches are not yet connected through the VSAT. 2. LESS ADVERTISEMENT SPILLS: SHCIL has less advertisement spill compared to its main competitor like Kodak securities, HDFC, IDBI bank, and ICICI bank. These are also producing the facilities of banking services and other related services to the customers.

OPPO RTUNITIES:
1. LARGE RURAL/SEMI-URBAN ARES ARE STILL UNEXPLORED: SHCIL has a growing structure of its branch network but still our rural and urban areas are not covered in the process whereby the common man participates in the growth of the economy. 41

Therefore it has become necessary to give attention to our rural and semi-urban sectors immediately. 2.SELL N- CASH: Sell- n- cash is totally a new concept of SHCIL where an investor can present his share to knell in the market and can take payment within 48 hours without delays. 3.MUTUAL FUND MARKETING: Marketing and distribution of mutual fund is providing the facility to the customer who do have the time and the expertise and who are averse to risk. 4. SGL ACCOUNT: SHCIL is the first corporation, which got he non banking license to dematerialize the government securities. This enables the institutional investors to properly use their fund to derive the extra return from their investment.

42

5. INSURANCE MARKETING:

Marketing of insurance services recently started by SHCIL is also a great opportunity available for its growth. This field can enhance great opportunities and can alleviate their position in the market.

THREATS:
1. CHARGES ARE HIGHER: Indian customers have less money at their disposal. Since SHCIL is the No.1 in the custodial sector in the market and for providing the best services, it has higher charges detrimental for small investors. 2. TIE UP WITH EXTERNAL AGENCY: Now days tie-ups, M&A are a regular phenomenon in the market to beat the competition and create a place for itself. The merger and tieups of financial corporations poses a bigger threat to SHCIL. 43

3, PRODUCTS AND SERVICES OF SHCIL According to the findings first ranking is given to Demat, second to mutual fund, third to broking and fourth to insurance. No one knows about estamping as one of the services offered by SHCIL

44

Chapter-6

WHY SHCIL?
Why customer would choose SHCIL as a preferred Service Provider? Well integrated front and back office, paper and electronic systems. A focusedClient Relation Team to manage your needs & queries. A single point contact foryour comfort. In-house capability to address all IT needs in terms of software development,maintenance, back office processing, database administration, network maintenance, backups and disaster recovery Multilevel security is maintained in software, applications and guards to access tovarious data, client and internal reports Expertise in running processes utilizing digital signatures. Regular Audits internal and external, by SEBI,Depositories, Clients and Compliance to rules and regulations Constant review and benchmarking of processes to ensure adherence to globalbest practices Insurance cover with international re-insurance Full Confidentiality of business operations

45

VALUES OF SHCIL: Safety & Efficiency of Operations is a hallmark of SHCIL Professionalism & Integrity Customer First Relationship building Commitment to Quality irrespective of asset size

46

CAPITAL STRUCTURE OF SHCIL

Promoter Life Insurance Corporation ( LIC) Unit Trust Of India (UTI) Industrial Development Bank ( IDBI) Generel Insurance Corporation & its Subsidiaries ( GICI ) Industrial Finance Corporation of India (IFCI) ICICI Ltd. ( ICICI Bank) Industrial Investment Bank of India ( IIBI) Others Holding pattern (%) 14.97 16.96 16.96 14.95 16.96 16.96 1.99 0.25

47

Chapter-7

ANALYSIS
This is the analysis of the survey done by me on the behalf of the Stock Holding Corporation of India Ltd. to know the investment pattern and investment psyche of the general public in Shimla. There were 112 individuals who were interviewed. This data is based on the feedback provided by those individuals. The sample of the individuals was selected from the area ofsanjauli, Cemetery,Dhalli and surroundings.

Under-mentioned were the questions asked from the individuals. 1) NAME 2) PHONE NUMBER 3) LOCATION 4) ANNUAL INCOME. 5) HAVE YOU INVESTED
48

6) HOW MUCH YOU HAVE INVSESTED 7) WHERE YOU HAVE INVESTED 8) OTHER INVESTMENT 9) IN WHICH COMPANY YOU HAVE INVESTED 10) HAVE YOU HEARD ABOUT SHCIL? 11) WOULD YOU LIKE TO MAKE INVESTMENT
THROUGH SHCIL IN FUTURE

49

The following is the analysis of survey: ANALYSIS - 1 Out of the data only0.89% of the people were having income more than 10 lacs&4.46% of the people were having income from 5 to 10 lacs and remaining i.e.94.65% were having income less than 5 lacs.

10 lacs 5-10 lacs less than 5 lacs

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ANALYSIS 2 There were only 4.46% people who have their investments between 5-10 lacs or there were only 5 people out of 112 who have their investments above 5 lacs.

Above 5lacs Less than 5lacs

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ANALYSIS 3 There are50 .89% or 57 people out of 112 people, who are interested to make investments through SHCIL in future, and remaining 38.39% or 43 people who are not interested to make investments through SHCIL.

How many would like to invest in SHCIL

Like to invest in SHCIL Not like to invest inSHCIL

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ANALYSIS 4 From the data collected there were 81.25% people who had made investments and remaining 18.75% havent made any investments?

Invested Not invested

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ANALYSIS -5 There were about 25.00% people who have heard about SHCIL and 75.00% havent heard about SHCIL.
How many people heard about SHCIL

Heard about SHCIL Not heard about SHCIL

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ANALYSIS 6 According to survey maximum of the individuals have made their investments in insurance products followed by the mutual funds, stock, and bonds. The investment made in these products is as follows INSURANCE-92 MUTUAL FUNDS-21 STOCK-13

BONDS-11

Individual Investment

Insurance Mutual Fund Stock Bond

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ANALYSIS-As per the survey the most trusted corporate for the purpose of investment was LIC. About 58% of the interviewed strata have invested in LIC and others are as followsLIC-58% ICICI-6% SBI-21% PNB-9% REC-0% SHCIL-2% RBI-2% UTI-3% GOI-1% HDFC-8% AVIVA-4% MAX-2% BIRLA-6% POST OFFICE SAVING-7% RELIANCE-3% Others-12%

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Chapter-8

CUSTOMERS VIEW REGARDING SHCIL S.NO

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Feature
Charges Service Promotion Personal touch Reliability Speed Time management Awareness about SHCIL Visit to SHCIL website Depository service Billing service Other service Working environment Dealing of employee with customer Relationship between clients and SHCIL

Customer View
Very high Good Need to invest in promotion Satisfactory Very reliable Good Satisfactory Less awareness Quite regular Good Unsatisfactory Good Needs more improvement Good Good

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Chapter-9 CONCLUSION
As the average income of the people living in Shimla is not so high due to which the people are much tentative to the insurance product than the other investment opportunities. The investment consciousness in Shimla is not so high due to which they are not able to make the best use of their savings. The investment is limited to very few products. The general tendency of normal investor is precautious; the investor invests into a limited range of products. The investor is comfortable only with pristine products. The investor is more leaned towards long term and safe financial products. That is why LIC insurance has maximum coverage in this stratum. It was also found that investment of single investor is also diversified to 58

other financial products. Many of the investors were invested through multiple financial products. Even Stock Holding Corporation of India Ltd. has great appeal in general masses but still the awareness regarding the Stock Holding Corporation (SHCIL) is less. However, people trust SHCIL for their investments.

Chapter-10 DATA BASE SURVEY

S.no NAME Phone No Location Annual Income Have u Invt. How Much Where Invt. Other Invt. Which Comp. Shcil In vt.

59

New 1 Ashish Kaushal09459657388Shimla 5-10 lacs 5-10 lacs deposit LIC,SBI,PNB yes yes fixed insurance yes 2 Anshul 9418589370 Less than yes Jubbal 5 Less than 5 lacs insurance sun life no lacs Birla no New Less 3 Pritesh Cauhan 9816064053 Shimla than yes 5 Less thanfixed deposit Birla sun life,HDFC lacs 5 lacs insurance no no 4 Er. Piyush Ranta9569917369 Less than 5 lacs khaiKothy no insurance sun life no Birla no 5 Hitesh Khakta 9418558675 Less than yes Cemetary 5 Less thanfixed deposit Post Office,LIC,SBI lacs 5 lacs insurance yes yes 6 Hema 9736177802 Less than 5 lacs Cemetary no yes yes 7 Yaspal thakur 9816156876 Less than yes 5-10 lacs depositSBI,LIC,RD,Post no Cemetary 5 lacs fixed insurance no office 8 Rajinder Chauhan 9805533303 Cemetary lacs Less than 5 lacs insurance 5-10 yes HDFC,LIC,RD,no yes 9 Amar chand chandel 9418116175 Less than yes Matiana 5 Less thanfixed deposit lacs 5 lacs SBI no no 10 Het Ram Chandel 9418646372 Less than yes Matiana 5 Less than 5 lacs insuranceLIC no no lacs 11 Hardev sarta9418024331 Less than yes Cemetary 5 Less thanfixed deposit lacs 5 lacs Post Office no no 12 Prakesh Dhalta 9459380483 Less than yes Jubbal 5 Less thanfixed deposit lacs 5 lacs insurance LIC,SBI no no 13 Pravesh Dhalta 9418091892 Less than yes Shimla 5 Less than 5 lacs insurance sun life no lacs Birla no 14 Sandeep pantu 9459741382 Less than yes Dhalli 5 Less than 5 lacs insurance lacs HDFC no yes 15 Yash metha 9882300777 Sanjauli 5-10 lacs 5-10 lacs stockLIC,KARVEY,SUBHYOG SAN yes bond yes yes 16 Rajesh Thakur 981602593Dhalli Less than yes 5 Less than 5 lacs insuranceLIC no no lacs 17 Sushil Sharma 9816043555 Less than yes Dhalli 5 Less thanfixed deposit Canara bank,LIC lacs 5 lacs insurance no no 18 Shailender Sharma 9882073163 Less than yes Kumarson 5 Less thanfixed deposit fund lacs 5 lacs mutual HDFC,BIRLA,RELIANCE yes no 19 Rakesh Napak 0177-2645682 Less than yes Theog 5 Less thanfixed deposit lacs 5 lacs insuranceLIC no yes 20 Vijay Sharma9459569437 Less than yes Sanjauli 5 Less than 5 lacs insuranceLIC no yes lacs 21 Priya kushal 9736630160 Less than yes Sanjauli 5 Less than 5 lacs insuranceLIC no yes lacs 22 Hira singh ghezta 9816201615 Less than 5 Less than 5 lacs insuranceLIC no no Cemetary no lacs 23 Vickey 9418462394 Matiana 5-10 lacs 5-10 lacs deposit LIC,Post officeno yes fixed insurance no 24 Surinder verma 9816521424 Less than 5 lacs Dhalli no no no 25 Mast Ram Chauhan 9882063467 Less than yes Matiana 5 Less than 5 lacs insuranceLIC yes yes lacs

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26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69

Surat Ram Chauhan Promila Verma Rakesh Chauhan Naresh Chauhan Rakersh Chauhan Vikram Chandel Ruchi Rajan Verma Poonam Kamla Verma Devi Ram Verma Tara Chand Shakuntla Balvinder Chauhan Sarla Subhadra Gyan Thakur Sanjeev Thakur Dinesh Amit Rita Arun Arivind Bantu Deppak Kaku Bekta Bunny Bitu Rajesh Khakta Sweeti Khakta Chintu Dishu Ganga Ram Vijay Kumar Geetu Kapil Baju Ram Chamel Rajinder Chauhan Gaurav Gopi Kishan Hardyal Metha Hans Raj Hardik

9882180898 9459979641 9459274503 9817577262 9459959020 9459979648 9459979646 9418379688 9857136572 9418647985 9459246322 9459212511 9459385145 9459979433 9817618028 9857201102 9418048596 9418127568 9418658430 9857647067 9459046065 9459032190 9418901443 9459036652 9218868172 9805506088 9459033428 9418215808 9418102038 9418213095 9816177701 9459282332 9816060123 9459821673 9816765379 9816568916 9805374059 9816341907 9816941179 9418701300 9817641006 9805866733 9857844560 9418670944

Matiana Less Dhalli Less Matiana Less Matiana Less Matiana Less Matiana Less Matiana Less Sanjauli Less Sanjauli Less Batta kufarLess Batta kufarLess Matiana Less Matiana Less Matiana Less Matiana Less Matiana Less Matiana Less Matiana Less Matiana Less Kotkhai Less Cemetary Less Malyana Less Tikkar Less Madhol Less Kotkhai Less New Shimla Less Dhalli Less Cemetary Less Kotkhai Less Cemetary Less Sanjauli Less Jubbal Less Cemetary Less Theog Less Cemetary Less Cemetary Less Sanjauli Less Sanjauli Less Cemetary Less Cemetary Less Sanjauli Less Sheelghat Less Bagi Less Cemetary Less

than 5 lacs no than 5 lacs yes than 5 lacs yes than 5 lacs yes than 5 lacs yes than 5 lacs yes than 5 lacs yes than 5 lacs yes than 5 lacs yes than 5 lacs no than 5 lacs no than 5 lacs yes than 5 lacs yes than 5 lacs yes than 5 lacs yes than 5 lacs yes than 5 lacs yes than 5 lacs yes than 5 lacs yes than 5 lacs yes than 5 lacs yes than 5 lacs yes than 5 lacs yes than 5 lacs yes than 5 lacs yes than 5 lacs no than 5 lacs yes than 5 lacs yes than 5 lacs no than 5 lacs yes than 5 lacs yes than 5 lacs yes than 5 lacs yes than 5 lacs yes than 5 lacs yes than 5 lacs no than 5 lacs yes than 5 lacs yes than 5 lacs no than 5 lacs yes than 5 lacs yes than 5 lacs yes than 5 lacs yes than 5 lacs yes

Less Less Less Less Less Less Less Less Less Less Less Less Less Less Less Less Less Less Less Less Less Less Less

than 5 lacs insurance than 5 lacs insurance than 5 lacs fund insurance mutual than 5 lacs insurance than 5 lacs bond than 5 lacsdeposit insurance fixed than 5 lacs insurance than 5 lacs fund stock mutual than 5 lacs fund mutual than 5 lacsdeposit insurance fixed than 5 lacsdeposit insurance fixed than 5 lacs insurance than 5 lacs stock insurance than 5 lacs stock insurance than 5 lacsdeposit insurance fixed than 5 lacs fund bond mutual than 5 lacs others than 5 lacs fund insurance mutual than 5 lacs fund insurance mutual than 5 lacs others insurance than 5 lacs insurance than 5 lacs insurance than 5 lacs fund insurance mutual

Less than 5 lacs bond insurance Less than 5 lacsdeposit insurance fixed Less Less Less Less Less Less than 5 lacs others insurance than 5 lacs others than 5 lacs others than 5 lacsdeposit insurance fixed than 5 lacs fund stock mutual than 5 lacs others

Less than 5 lacs fund stock mutual Less than 5 lacs fund insurance mutual Less Less Less Less Less than 5 lacs fund insurance mutual than 5 lacsdeposit insurance fixed than 5 lacs others than 5 lacs insurance than 5 lacs insurance

no no LIC no yes LIC no yes LIC no yes LIC no yes ICICI yes no Post Office,LIC,SBI no no LIC no yes HDFC,RELIANCE,SBI yes no no yes UTI yes yes LIC,RELIANCE no no LIC,Sindicate bank,SBI no no LIC yes no LIC,BAJAJ yes ALLIANZ,SBI yes SHCIL,LIC,BANK OF BADODRA yes yes PNB,LIC no yes UTI,RBI taxable bonds,LIC,Post Of yes no co-operative bank yes no LIC no no LIC,Axis bank,HDFC no no LIC,PNB,Punjab and Sindh bank no no LIC yes yes Max new york life yes no LIC,AVIVA no INSURANCE,FUT LIFE yes no yes LIC,PNB,IDBI yes yes LIC,Post Office no no no yes Aviva Life Insurance India Ltd no yes SBI yes no SBI no yes Indusland bank,AVIVA LIFE INSUR no yes LIC,ICICI,SBI,Postyes no Office PNB no yes no no AVIVA LIFE INSURANCE,SAHAR no yes ICICI,HDFC,SBP,Axis bank no no no no Kotak Mahindra,SBI yes yes LIC,Canarano bank,Uco bank yes SBI no yes LIC no no LIC no no

61

70 Inder 71 Rajesh 72 Lokinder Chauhan 73 Harish Sathan 74 Man Singh Manta 75 Lakashya 76 Lucky 77 Mahesh 78 Ashish 79 Mohit 80 Mohit 81 Mukesh 82 Joginder 83 Prakesh 84 Rajinesh 85 Rajinder 86 Rakesh Sharma 87 Ram Gopal 88 Rohit Chauhan 89 Sanjeev 90 Sunny 91 Statish 92 Shushil 93 Shushil 94 Sohan Thakur 95 Suresh 96 Surinder 97 Vikram Thakur 98 Bupinder 99 Tarun

9816626226 Totu Less than 5 lacs Less than 5 lacs yes others insurance 9418171426 Gumma Less than 5 lacs Less than 5 lacs yes others insurance 9816187733 Kotkhai Less than 5 lacs Less than 5 lacs yes others 9857844858 Kotkhai Less than 5 lacs Less than 5 lacs yes insurance 9459581196 Rohru Less than 5 lacs Less than 5 lacs yes others insurance 9418040922 Sanjauli Less than 5 lacs no 9459974211 Kotkhai Less than 5 lacs Less than 5 lacs yes others insurance 9736277999 Matiana Less than 5 lacs Less than 5 lacs yes others insurance 9816131947 Shimla Less than 5 lacs Less than 5 lacsdepositinsurance yes fixed 9459747447 Kotkhai Less than 5 lacs Less than 5 lacs yes insurance 9459382808 Batta kufarLess than 5 lacs Less than 5 lacs yes insurance 9816539775 Tikkar Less than 5 lacs Less than 5 lacs yes others insurance 9418561844 Kotkhai Less than 5 lacs Less than 5 lacs yes insurance 9418190319 Kotkhai Less than 5 lacs Less than 5 lacs yes stock insurance 9418588949 Cemetary Less than 5 lacs no 8894330029 Nankhari Less than 5 lacs Less than 5 lacs yes others insurance 9418678867 Cemetary Less than 5 lacs Less than 5 lacsdepositinsurance yes fixed 9418678867 Cemetary Less than 5 lacs Less than 5 lacs yes insurance 9418121601 Cemetary Less than 5 lacs Less than 5 lacs fund insurance yes mutual 9805648774 Batta Kuffar ess than 5 lacs Less than 5 lacs L yes bond insurance 9418249524 Cemetary Less than 5 lacs Less than 5 lacs fund insurance yes mutual 9129005100 Cemetary Less than 5 lacs no 9816432903 Tikkar Less than 5 lacs no 9459580009 Sanjauli Less than 5 lacs Less than 5 lacs yes insurance 9805409904 Nearva Less than 5 lacs no 9817165267 Nankhari Less than 5 lacs Less than 5 lacs yes insurance 9817210803 Shimla Less than 5 lacs no 9816041082 Shimla Less than 5 lacs no 9418579508 Matiana Less than 5 lacs Less than 5 lacs yes insurance 9418325511 Shimla Less than 5 lacs no

LIC,SBI,HDFC,ICICI no yes LIC,PNB,Oriental bank no no Axis bank,Orientalyes yes bank,Canara bank LIC yes yes LIC,SBI yes no no yes ICICI,SBI no yes LIC,PNB,UCO BANK yes no LIC, no yes LIC yes no LIC no no LIC no yes Max new york life yes no SHCIL,LIC,GOI yes yes no yes LIC no no LIC,PNB no no LIC no no UTI,LIC,SBIno yes RBI,LIC,ICICI,SBI yes no ICICI,LIC,SBI yes no no yes yes yes LIC no yes no yes LIC yes yes no no no yes LIC no yes yes yes

62

100 Suman 8091497305 Less than Less than 5 deposit LIC,PNB yes Shimla yes 5 lacs fixed lacs insurance yes 101 Sanju 9882207200 Less than Less than 5 deposit SBI no no Cemetary yes 5 lacs fixed lacs 102 Ume 9857747179 Less than Less than 5 deposit Bajaj Alliance Totu yes 5 lacs fixed lacs insurance no no 103 Vickey 9418589859 Less than 5 lacs Cemetary no no no 104 Yashpal 9805312759 Less than Less than 5 lacs Kotkhai yes 5 lacs stock insurance sun life Birla no no 105 Aashu 9816022140 Less than Less than 5 lacs Sanjauli yes 5 lacs insurance no no LIC 106 Anu 9459960394 Less than 5 lacs Kotkhai no no no 107 Yogesh Thakur 9816036603 Less than Less than 5 deposit LIC,PNB no Kotkhai yes 5 lacs fixed lacs insurance no 108 Pradeep 9418086921 Less than Less than 5 lacs Kotkhai yes 5 lacs insurance sun life Birla no no 109 Arvind klanta 9857258693 5-10 lacs Less than 5 deposit LIC,AVIVAno Jubbal yes fixed lacs insurance no 110 Vijay Sharma 9459972174 Less than Less than 5 lacs Cemetary yes 5 lacs insurance no no LIC 111 Raghuvanshi Ajay 9459225123 Shimla yes 5-10 lacs deposit LIC,HDFC,BAJAJ New Above 10 lacs fixed insurance no no 112 insurance no no LIC,BAJAJ,SBI Raman Ranta 9805302315 Patharthan Less than 5 lacs Khara Less yes 5 lacs

63

Chapter-11

BIBLIOGRAPHY www.onlinestockholding.com www.sebiindia.com www.nsdl.com www.moneycontrol.com www.investopedia.com www.shcil.com

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