Hdfc Project

COMPARATIVE ANALYSIS OF DEMAT SERVICES OF BROKING FIRMS

A PROJECT REPORT ON MANAGEMENT OF FINANCIAL SERVICES

SUBMITTED TOWARDS PARTIAL FULFILLMENT OF POSTGRADUATE PROGRAMME IN MANAGEMENT

SUBMITTED TO PROF: SAMARJEET SEN GUPTA

SUBMITTED BY D.RAVI H2-23 AJAY KUMAR H2-19 AMIT NAWEEN KUMAR RAI rd (3 SEMESTER) SPECIALIZATION –MARKETING + FINANCE

EASTERN INSTITUTE FOR INTEGRATED LEARNING IN MANAGEMENT GILANDER HOUSE KOLKATA

NOTICE The presentation of this project is truely based on my knowledge and it may have some defaults and errors which is to the subject knowledge. this project can be taken for the purpose of understanding only and should not be taken as the real. Charges and other services provided in it may vary slightly or wholly.

ACKNOWLEDGEMENT We are thankful to MR. Samarjeet sen gupta who has given this opportunity for doing a project work on “comparative study of demat services of different broking firms”. From this study we have gathered knowledge of services which are provided by the broking firms and also find out which of the firm is having good service.

1) INTRODUCTION 2) DEMATERALIZATION 3) REMATERIALIZATION 4) DEPOSITIORY SERVICE 5) DEMAT SERVICES OF HDFC 6) DEMAT SERVICES OF OTHER FIRMS 7) COMPARISION OF DEMAT SERVICES OF HDFC WITH OTHER FIRMS 8) FINDINGS 9) CONCLUSION 10) BIBLIOGRAPHY

1) INTRODUCTION

Every modern economy is based on a sound financial system .A financial system is a set of institutional arrangements through which financial surpluses are mobilized from the units generating surplus income and transferring them to the others in need of them. The activities include production, distribution, exchange and holding of financial assets/instruments of different kinds by financial institutions, banks and other intermediaries of the market. The financial markets have two major components; they are money market and capital market. Financial Markets

Money Market Market

Capital

Securities Market other forms of Lending And Borrowing New issue (Primary)

Stock

(Secondary) Market MONEY MARKET: The Money Market refers to the market where borrowers and lenders exchange short-term funds to solve their liquidity needs. CAPITAL MARKET: The Capital Market is a market for financial investments that are direct or indirect claims to capital (Gart, 1988).

SECURITIES MARKET: It refers to the markets for those financial instruments/claims/obligations that are commonly and readily transferable by sale. It has two inter-dependent and inseparable segments, the new issues (primary) market and the stock (secondary) market. SECONDARY MARKET: The secondary market enables those who hold securities to adjust their holdings in response to changes in their assessment of risk and return. PRIMARY MARKET:

The Primary Markets provides the channel of sale of new securities.

2) DEMATERIALZATION

Demat account Definition: De-mat 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 De-mat mode only. Thus, it is advisable to have a Beneficiary Owner (BO) account to trade at the exchanges. Benefits Of De-mat Account: 1. A safe and convenient way of holding securities (equity and 2.

3. 4.

5. 6. 7. 8.

debt instruments both). Transactions involving physical securities are costlier than those involving dematerialized 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.

9. Odd-lot shares can also be traded (can be even 1 share). 10. Nomination facility available. 11. 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. 12. Securities are transferred by the DP itself, so no need to correspond with the companies. 13. Shares arising out of bonus, split, consolidation, merger etc. are automatically credited into the De-mat account of the investor. Shares allotted in public issues are directly credited into De-mat account of the applicants in quick time

Opening a De-mat Account To start dealing in securities in electronic form, one needs to open a De-mat 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. 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 inaction by removing account opening charges, transaction charges for credit of securities and custody charges, effective from January 28, 2005.

Maximum Number of holders in a De-mat Account A maximum of three persons are allowed to open a joint De-mat account in their names

3) REMATERIALISATION Definition: Dematerialization is the process of converting physical shares (share certificates) into an electronic form. Shares once converted into dematerialized form are held in a De-mat account. Dematerialization Process: An investor having securities in physical form must get them dematerialized, if he intends to sell them. This requires the investor to fill a De-mat Request Form (DRF) which is available with every DP and submit the same along with the physical certificates. Every security has an ISIN (International Securities Identification Number). If there is more than one security than the equal number of DRFs has to be filled in.

The whole process goes on in the following manner:--

THINGS INVESTORS SHOULD KNOW ABOUT ACCOUNT OPENING AND DEMATERIALISATION Providing the bank account details at the time of account opening It is mandatory for an investor to provide his bank account details at the time of opening a De-mat account. This is done to safeguard investor's own interests. There are two major reasons for this: 1. The interest and dividend warrants can't be en-cashed by any unauthorized person, as the bank account number is mentioned on it. 2. It is convenient and time saving, as dividends and interests given by the companies can be directly credited to the investor's bank account (through ECS facility, wherever available).

Change in bank account details It is possible for an investor to make changes to the details of his bank account. The investor must inform any change in his bank account details to his DP. This enables him to receive the cash corporate benefits (such as dividends, interests) directly into his account in time and discourages any unauthorized use by any second party. Change in the address of investor as provided to the DP Any change in your address should be immediately informed to DP. This enables DP to make necessary changes in the records and informing the concerned companies about the same. Opening multiple accounts an investor is allowed to open more than one account with existing DP or with different DPs.

Minimum balance of securities required in De-mat account There is no stipulated minimum balance of securities to be kept in a De-mat account. Account opening and ownership pattern of securities One must make sure to open a De-mat account in the same ownership pattern in which the physical securities are held. For example: If you have two share certificates, one in your individual name (say 'X') and the other held jointly with some other individual (say 'XY'), then in such a case you will have to open two different accounts in respective ownership patterns (one in your name i.e. 'X' and the other account in the name of 'XY'). Same combination of names on certificates but different sequence of names on the certificates or De-mat account Regulations provide that the client receives a contract note indicating details like order number, trade number, time, price, brokerage, etc. within 24 hour of the trade. In case of any doubts about the details of the contract note, you (investor) can avail the facility provided by NSE, wherein you can verify the trades on your website www.nseindia.com/content/equities/eq_trdverify.htm. The Exchange generates and maintains an audit trail of orders/trades for a number of years, and you can counter check details of order/trade with the Exchange. Holding a joint account on "Either or Survivor" basis like a bank account No investor can open a De-mat account on "E or S" basis like a bank account. Allowing somebody else to operate your De-mat account It is possible for an account holder (Beneficiary Owner) to authorize some other person to operate the De-mat account on his behalf by executing a power of attorney. After submitting the power of attorney to the DP, that person can operate the account on behalf of the beneficiary owner (BO).

Addition/deletion of the names of the account holders after opening the account It is not possible to make changes in the names of the account holders of a BO account. A new account has to be opened in a desired holding/ownership pattern. Closing a demat account and transfer of securities to another account with same or different DP An investor, if he wants, can also close his demat account with one DP and transfer all the securities to another account with existing or a different DP. As per a SEBI circular issued on November 09, 2005, there are no charges for account closure or transfer of securities by an investor from one DP to another Freezing/Locking a demat account The account holder can freeze his demat account for a desired time period. A frozen account prevents securities to be transferred out of (Debit) and transferred into (Credit) the account. Dematerialized shares do not have any distinctive number Dematerialized securities are fungible assets. Therefore they are interchangeable and identical.

4) Dematerialization The process of getting the securities in an electronic form, converted back into the physical form is known as Dematerialization. An investor can rematerialize his shares by filling in a Remat Request Form (RRF). The whole process goes on as follows: ---

Trading account: It is that type of account with the help of which a De-Mat account holder can buy or sell shares. India Infoline Ltd. Provide their customer software” Trade Terminal” for trading by free of cost and unlimited number of scripts.

5) Depository Service’s



Depository - An organization that facilitates holding of securities

In the electronic form and enables DPs to provide services to investors relating to transaction in securities. There are two depositories in India, namely NSDL and CDSL. As per a SEBI guideline, the minimum net worth stipulated for a Depository is Rs.100 crore. 

NSDL/CDSL - The securities are held in depository accounts, like the funds

are held in bank accounts. There are two depositories in India namely NSDL and CDSL. NSDL (National Securities Depository limited) was established in August 1996 and is the first depository in India. CDSL (Central Depository Securities Limited) is the other depository and was established in 1999. 

DP (Depository Participant) - A Depository Participant can be a financial

Organization like banks, brokers, financial institutions, custodians, etc., acting as an agent of the Depository to make its services available to the investors. There are a total of 1334 DPs registered with SEBI, as on March 31, 2009 and each DP

is assigned a unique identification number known as DP-ID. Under the Depositories Act, investors can avail of the services of the Depositories through Depository Participants (DP) such as HDFC BANK.

6) Demat services of HDFC

HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8 Lac demat accounts. HDFC Bank Demat services offers you a secure and convenient way to keep track of your securities and investments, over a period of time, without the hassle of handling physical documents that get mutilated or lost in transit. HDFC BANK is Depository participant both with -National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL).

Features & Benefits of demat account in HDFC As opposed to the earlier form of dealing in physical certificates with delays in transaction, holding and trading in Demat form has the following benefits Settlement of Securities traded on the exchanges as well as off market transactions. Shorter settlements thereby enhancing liquidity. Pledging of Securities Electronic credit in public issue

Auto Credit of Rights / Bonus / Public Issues / Dividend credit through ECS Auto Credit of Public Issue refunds to the bank account No stamp duty on transfer of securities held in demat form

No concept of Market Lots Change of address, Signature, Dividend Mandate, registration of power of attorney, transmission etc. can be effected across companies held in demat form by a single instruction to the Depository Participant (DP). Holding / Transaction details through Internet / email. Secured & easy transaction processing service HDFC Bank Ltd provides convenient facility called 'SPEED-e' (Internet based transaction) whereby account holder can submit delivery instructions electronically through SPEED-e website (https://speed-e.nsdl.com). SPEED-e offers secured means of transaction processing eliminating preparation of instruction slips and submission of the same across the counter to the depository participant. The 'IDEAS' facility helps in viewing the current transactions and balances (holdings) of Demat account on Internet on real time basis. Types of Demat Accounts offered by HDFC  Resident Individual Account.  Hindu Undivided Family (HUF) Account  Domestic Corporate Account  Non Resident Indian (NRI) Account  Clearing Member Account

 Commodities Account  Pool Accounts for Brokers and Clearing Members  Margin Account

Account Opening Process Anyone who wants to open a demat account in hdfc can visit the website of HDFC and can apply for the same. When any one register for demat account opening, the executive of HDFC will contact him/her and will complete further formalities needed for account opening. Or Alternatively one can visit the nearest branch to obtain the necessary applications and complete the formalities. Upon processing of application form The registrar of demat account, will receive a "Welcome Kit" which will include a Personalised Instruction Booklet along with a DP Client Master list ( CML) for the demat account. The CML will contain the following:   

Your Demat Account Number. Name(s) of the Account Holder(s). Nomination details, if applicable and opted

Instruction slips Processing

Instruction slips are like Cheque leafs, but the difference is it has to be signed by ALL the account holders, as "Either or Survivor" concept is not available in demat segment.  Please keep them under safe custody.  Do not leave "blank or signed" Delivery Instruction Slip (DIS) with the Depository Participants (DPs) or any other person/entity  Ensure Instruction slips are properly filled and signed by ALL the holders of the account.  Ensure that the Instruction slips are submitted to us well within the time for timely execution. I.e. markets transactions are to be submitted to us by 4.00 pm on the day prior to Pay-in and incase of Off-Market ensure the "execution date" is of the next day of submission. Off market with same day execution and On-Market instructions received after 4.00 pm for next day Payin will be accepted and processed at your risk and responsibility.  Ensure that the blank columns are cancelled.  Ensure that acknowledgement is obtained on ALL the duplicate copies of the instructions submitted.  In case of fresh instruction book requirement, ensure that the request is submitted in the form provided in your existing booklet. Kindly note as per recent SEBI guidelines SEBI/MRD/Dep/Cir-03/2007 dated 13th Feb 2007, only 20 instruction slips for individual accounts and 100 instruction slips for non - individual account holders, can be issued at one time. Further the same can be issued only after minimum of 75% usage on the previous issued instructions, unless reported lost/ stolen / non traceable by client.  Incase of loss / stolen / misplacement of your instruction booklets, please inform us in writing, duly signed by all the holders to make a stop transfer. 

Not more than 10 loose slips instruction slips can be issued to one account in a financial year (April to March). For issuance of loose instruction slips, account holder shall come in person and sign the loose slip in presence of an authorized bank official

Market Transactions When you are required to deliver the securities to your broker's pool account, you need to complete the "Market" details on the Instruction Slip which is provided to you in the Welcome Kit. In such Case the information’s are required to be provided by the account holders. CMBP ID of your broker DP Name where your broker's pool account is held. Settlement Type. Settlement Number

Off-Market Transactions Incase if one required making an off-market transaction to transfer the securities to another account held in the same depository, please fill-up the following details of the Target account. DP ID. DP Name. Client ID The following information’s are related to the security that one is required to transfer ISIN Number. Scrip Name Quantity in numbers

Quantity in words Execution date. Customer are also required to provide Reason / Purpose of the off market Transaction, & Consideration Amount (if any) Paid / Received for ALL off market instruction (including inter depository transaction and for both delivery and receipt). In addition to the instruction slip this information can be provided in an annexure signed by ALL the holders.Click here to download the annexure format Securities Lending & Borrowing Securities Lending & Borrowing (SLB) segment delivery instructions are to be submitted on the trading day itself. It is advisable to avail SPEEDe facility for the smooth processing of instructions.

Electronic Instruction (Speed E, Easi) The above instructions can also be processed electronically by yourselves, i.e. no need to submit a physical instruction. Basically one can use the Speed E of NSDL and Easi of CDSL wherein one also needs to punch in the instruction details. The same will get processed electronically by the respective Depositories. However it is need to register for the same with the consent of one’s broker(s). You can register up to 3 brokers per DP account. Inter-Depository Transactions It is basically transfer of securities between two demat accounts held across depositories, i.e from NSDL to CDSL and vis-versa.

Transfer from NSDL account to a CDSL account In case of a client holding a Beneficiary Account with NSDL, he / she have to submit an instruction as per format. Transfer from CDSL account to a NSDL account In case of a client holding a Beneficiary Account with CDSL, he / she has to submit an instruction as per format SMS Alert facility from NSDL For demat account holders whereby investors can receive alerts a day after debits (transfers) to their demat accounts. 

Rematerialisation of securities This is a process of converting the Electronic securities into Physical, i.e reverse of Dematerialisation for which form "RPF" is required to be submitted by the account holders

In case of rematerialisation, kindly ensure the following Request "RPF" is duly signed by ALL the account holders. One RPF per ISIN per account is submitted Upon receipt of the RPF, HDFC Bank will. Verify the names on the RPF with the names on the account Verify the signature on the RPF with the signature on the account. Process the request and forward it to the Registrar / Company concerned Company/Registrar will issue a new certificate and forward it directly to the address registered in your Demat account

Pledge Creation Securities in one demat account can be pledged infavour of an another demat account within the same depository. I.e. if a Pledgor's account is in NSDL segment, the Pledge’s account has to be in NSDL Segment only. Vis versa for CDSL segment. This can be done to avail facility, loans etc You need to submit a Pledge Creation form duly filled with the details of the security which you would like to pledge with the counterpart (Pledgee) DP account details. The form should be duly signed by ALL the account holders. Kindly mention the Agreement number for reference purpose, which one should obtain from the Pledgee before execution. Also ensure the Execution date on which one would like to create the pledge. Upon receipt of the request, HDFC Bank will process the instruction in requestee demat account specified. The details processed will be sent to the counterparty demat account through NSDL automatically.

Pledge Confirmation Pledgee has to check their demat account and accept the pledge through their DP. Upon acceptance, the securities will be marked as "Pledge" in your demat account infavour of the Pledgee. Once the Pledge is created, the same cannot be closed / revoked by the Pledgor. Pledge Closure Pledgee can close the pledge through "Unilateral" option through their DP account itself. I.e. no need of Pledgor submitting a request to his DP. Invocation of Pledge

In case of Pledgee requires to take the securities into their books, typically incase of default by the Pledgor, they can do so without any further instruction from the Pledgor. Upon invoking the securities will be transferred automatically into the account of Pledgee

FREEZING/ DEFREEZING OF DEMAT ACCOUNT If anyone who would like to Freeze his/her demat account OR freeze a specific or set of ISINs in his/her account, the same can be done. One should need to submit an instruction as per format to do the same with a future execution date. When one would like to defreeze the same, then he/she need to provide another instruction as per format to do so.

Purchase of KVP and NSC through a demat account One can make a fresh purchase of KVP & NSC through his/her existing demat. I.e. no need to open a separate demat account for the same

Guidelines for Purchase of KVP / NSC Check with the Post of Office whether they issue the credit in demat mode, as only select post offices in Mumbai are issuing the same. Investors will be able to submit the forms either directly to post offices or through agents, as at present. NSC and KVP can be held by individuals. Further, Joint holders only upto two are allowed.

NSDL as well as DPs will not charge any custody fee for holding NSC/KVP. Investors can pledge NSC/KVP, as per the rules of the DoP. On redemption, the investor may not be required to go to the issuing post office as the redemption amount may directly be credited into the investor's bank account or a warrant can be directly sent to the investor. For this purpose, it is necessary for the investor to mention his bank account details in the application form. Investors can hold NSC/KVP in their existing demat account. This would enable the investors to consolidate different types of investments in a single demat account. Multiple investments in these securities will also get reflected in a single account statement. Risk associated with holding physical certificate will be eliminated. On redemption, the investor need not go to the post office. The investor's bank account will be credited directly or he will receive a warrant at his residence. As of now, dematerialisation of existing KVP / NSC certificates is not available.

Statements Demat account holders will be provided with a monthly transaction cum billing cum holding statement, if there are any transaction took place during the month. All the demat account holders will be provided a quarterly holding statement on a quarterly basis. Incase of 1st holder of a demat account has a savings / current account with HDFC Bank, he can access his demat holdings as of the previous day through Internet. The account holder has to register for a "net banking" and "dp on net".

Change of Address A w r i t t e n r e q u e s t s i g n e d b y A L L t h e

h o l d e r s t o b e s u b m i t t e d t o u s . Copy of latest demat account transaction statement needs to be provided. Kindly ensure that the same is the latest one. Copy of Identity Proof of ALL the holders needs to be submitted and original needs to be shown to the bank official for verification purpose. Copy of the new valid address proof to be provided to us and original needs to be shown to the bank official for verification

purpose. Either one is needed to visit the branch OR one can authorize their representative to do the needful. In case one authorizes his/her representative to complete the original needs to be shown to the bank official for verification purpose. Investor and their respective representative have to sign once again in the presence of a DP official. On receipt of a valid request, HDFC Bank will verify the photo on the ID proofs submitted along with the request with the photo on the original application form and effect the changes. Also HDFC Bank will send intimation to this effect to investor’s old and new address.

Change of Signature S u b m i t a r e q u e s t a s

p e r o u r f o r m a t d u l y f i l l e d a n d s i g n e d .

Ensure that the new signature is duly attested by the banker with his signature, name, employee code and complete address of the bank. Kindly mention the reason for the change of signature. Visit the branch personally to submit the request. Sign once again in front of the bank official. Submit a copy of valid ID Proof along with original for hdfc verification purpose. On receipt of a valid request, HDFC Bank will verify the photo on the ID proofs submitted along with the request with the photo on the original application form and effect the changes.

Change of Bank Account details Submit a change request to us duly signed by the 1st holder as per our format. Submit a specimen / cancelled copy of cheque leaf. Please provide the complete address of the bank as follows:



Building / Tower / Apartment / Palace / Chamber / Mansion Street / Road / Marg / Lane / Avenue / Rasta Area Name City Name



Mention the 9-digit MICR code on the request.

  

Power of Attorney (POA) Incase if anyone like to register a POA given to another individual to operate investors demat account, one may kindly do so. POA holder is subject to KYC guidelines of HDFC Bank. Notarised copy of POA is required to submitted to HDFC Bank. Signature of both Donor and Donee should be available on the

POA. POA should have atleast the minimum clauses advised by NSDL.

Transmission In the event of unfortunate death of any of the account holder, the securities held in the demat account of the deceased can be transmitted to the surviving holders / valid nominee / legal heirs as the case may be. Surviving Holders In case of death of one of the joint holder, the surviving holders can get the securities transmitted into their account. Surviving holder(s) has to maintain / open the demat account in the same holding pattern, except the deceased holder. Transmission into Nominee's account In case of death of the sole / all holders of a demat account, and if a valid nomination is registered in the demat account, the nominee can make a request as per format, (The provisions relating to format shall apply mutatis mutandis to the process of transmission of securities to the Nominee) along with a notarized copy of Death Certificate to the bank to get the securities transferred into his / her account held singly. Transmission into Legal Heir(s) account In case of no surviving joint holders and no nomination registered, the transmission can be effected to the account of the legal heir. Succession Certificate or Probate of will or letter of administration duly notarized is required to submit. In such case the demat

account needs to be held / opened as required by the document submitted for the claim. For all the above 3 categories, a specific request as per format is required to be submitted along with a notarized copy of death certificate of the deceased. For the 3rd Category in where there is no surviving holder or nomination, the following additional documents would be required: A Copy of Succession Certificate duly notarized or an order of a Court Competent jurisdiction where the deceased has not left a Will; or A Copy of Probate or letter of administration duly notarized is required to be submitted. In case of any further attachment to the annexure, the same is required to be signed by all concerned. However, if the legal heir(s) or the legal representative(s) express inability to produce either of the documents mentioned under (ii) and (iii) above, and the market value of the securities held in each of the account of the deceased as on the date of application for transmission does not exceed Rs. 1,00,000/- then the Participant shall process the transmission request on the basis of the following documents: Request for transmission as per the format; Copy of the death certificate duly notarized; Letter of Indemnity duly supported by a guarantee of an independent Surety acceptable to the Participant, made on appropriate non judicial stamp paper; An Affidavit made on appropriate non judicial stamp paper; and No Objection Certificate(s) from all the legal heir(s) who do not object to such transmission.

DP on Net

If a 1st holder of a demat account maintains a Savings / Current Account with HDFC Bank, he / she can opt for a "Netbanking" facility. Through which the demat account status of the previous day, i.e holding and last few transactions can be viewed. For which the account holder has to register for "Netbanking" and linking of demat account to his "CustID"

Demat Fees Curently Transaction charges are charged on a monthly basis which includes NSDL / CDSL Charges as other statutory charges like Service Tax and Cess. Details of the same are provided in the monthly "Transaction cum Billing" Statement Dematerialisation charges are charged on a monthly basis for the DRF and certificates submitted to us. Annual Maintenance charges are charged on a yearly basis. The same is charged at the expiry of every 12 months for the next year. All such charges are debited to the Savings / Current Account to which you have authorized the bank to debit the charges FEE HEAD Account Opening Dematerialization s

CHARGES NILL Rs. 3 per certificate, plus Rs. 35/- per request Rematerialisation At actuals, as levied by the Depository Currently Rs. 10/per certificate Equity Transaction 0.04 % of the value – SELL of the transaction Equity Transaction NILL – Buy Folio Maintenance Rs. 500.00 per

MINMUM FEES RS 38.00 -----

** Minimum Rs.20.00

Rs. 500.00

Pledge Services * Asset Holding Debt Transactions – Sell

Debt Transactions – Buy Mailing Charges for non periodic statements and other communication

demat account per annum 0.04% of the value of the shares NILL 0.04 % of the value of the transaction. Minimum Rs 500/and Maximum Rs 5000/- per Txn NILL

RS25.00 Rs. 500.00 per txn.

Rs. 25/- per request ----for inland address Rs. 500/- per request for foreign address

7) DEMAT SERVICES OF OTHER FIRMS INDIA INFOLINE Services: Demat account offered for investor: (based on group) accounts demat

Individual

NRI demat account Corporate account HUF account

Partnership Firm account Proprietorship Firm account

Types of account: (based on securities & funds)

Trading account Depository account

Share trading through: Online- trader terminal software -5paisa.com -indiainfoline.com : Offline- relationship manager -via franchise Transaction detail through: sms Transaction report via courier Phone calls Demat charge Remat charge Transaction (Debit)

ANGEL BROKING Services:

:Rs 10/- per cert + Rs 40/- as postal charges Rs 15/- per cert + Rs 40/- as postal charges Min Rs 15/- Max Rs 100/- or 0.05% of the value of the securities

Demat account offered for investor : (based on group) individual account joint account NRI account Types of demat account: ANGEL TRADE - ANGEL INVESTOR -ANGEL DIET -ANGEL ANYWHERE

Type of account offered: (based on securities & funds) depository account Trading account

Share trading through: Online- ANGEL TRADE - ANGEL INVESTOR -ANGEL DIET -ANGEL ANYWHERE Offline-relationship manager

Transaction detail through: sms Transaction report via courier quarterly Phone calls Research: Research on 25 Agro Commodities, Precious and Base Metals, Energy products and Polymers. Other services: Seminars, workshops and investment camps for investors. Publishing daily reports pertinent to the respective market situation. No charges for extra transaction statement and holding statement.

RELIGARE Demat account offered for investor : (based on group) individual account joint account NRI account

Types of demat account offered: R ACE basic R ACE lite (advanced)

R ACE PRO (professional)

Type of account offered: (based on securities & funds) depository account Trading account Share trading through: ONLINE – ODIN software OFFLINE- relationship manager

Transaction detail through: sms, courier, calls HSBC SECURITIES Services: Demat account offered for investor : (based on group) • • • • • •

Resident Individual Non Resident Indian (NRI) / Foreign National (FN) HUF Minor account Domestic Company Foreign Corporate Body

Types of DEMAT account :

SMART PLUS

SMART ELITE SMART POWER

Types of account offered: (based on securities & funds) Saving account trading account depositiry account Share trading through: online: available Offline: relationship manager Transaction detail through:

SMS, EMAIL, COURIER

Pledge Charges: Creation/Closure 0.02% of the transaction Charges mini Rs.50 plus NSDL/CDSL charges at actual .Pledge Charges for Invocation 0.05% of transaction charges subject to a mini. Rs 50

Remat charge: Rs.25 per certificate or 0.05% of the value whichever is higher Other services:

 Live Trading Calls  Research Reports on Mail  Invitation to HNI MEET’s

 Tele Trade Facility  SMS Alerts  Demo On Phone

COMPARATIVE CHART OF BROKING CHARGE’S OFFERED BY VARIOUS FIRMS. BROKING FIRM

ACCOUN T OPENIN G CHARGE

BROKERA GE RATE

HDFC

0/-

INDIA INFOLINE ANGEL BROKING HSBC SECURITI ES RELIGAR E

0/-

MIN 5000/20/-,0.O4 % 0.05- 0.50 2555/-

731/-

0.03- 0.30 5000/-

250/-,5 8 TIMES 55 LT 300/4 TIMES

650/-

0.01- 0.60 5000/-

300/-

4 TIMES

0/-

0.03-0.30

299/LT

20 TIMES

IntraDelivery (%)

MARGI N MONEY

5000/-

AMC

EXPOSU RE

500/-

5 TIMES

[AMC-account maintenance charge, LT-life time]

RESULTS: 1) From the comparative chart it is found that account opening charge of indiainfoline, HDFC & religare is zero rupees. 2) Brokerage rate of Angel broking & religare is lesser than other firm’s brokerage rate for transactions in share trading.

3) Yearly account maintenance charge of India infoline is less than others. 4) Religare provides the maximum exposure. 5) Brokerage charge of HSBC for delivery is higher than other firms. 6) Minimum brokerage charge for intraday is provided by HSBC.

COMPARATIVE CHART FOR SERVICES OFFERED BY VARIOUS FIRMS

SERV HDFC ICES

RELIGA RE

HSBC

Type s of acco unt( grou p)

IND, HUF , DM C, NRI ,CMA,CA,P A

IND,NRI, IND, JOINT NRI,JOI NT,COR P,HUF

Type s of dem at acco unt Type s of acco unts( secu

SINGLE

R ACE , R LITE, R PRO BASIC

TRADE,DEP OSITORY,S AVING

TRADE, DEPOSI TORY

S PLUS, S ELITE, S POWER TRADE, DEPOS OITORY ,SAVIN G

ANGELBROKI NG

INDIAINFOLI NE

IND, JOINT, NRI

IND, HUF, NRI,CORP,PF A,PRFA

ANG T,ANG I ,ANG D,ANG A

SINGLE

TRADE,DEPO SITORY

TRADE,DEPO SITORY

rities ) Mark AVL et Tran sacti ons

AVL

AVL

AVL

AVL

OFF AVL MAR KET TAN SACT IONS

AVL

AVL

AVL

AVL

Secu AVL rities Lend ing & Borr owin g

AVL

AVL

AVL

AVL

Inter AVL Depo sitor y

AVL

AVL

AVL

AVL

NSD L Tran sacti

ons PLED AVL GE

AVL

AVL

AVL

AVL

FREE AVL ZING /DEF REZI NG OF DEM AT ACC OUN T

AVL

AVL

AVL

AVL

TRA NSA CTIO N Stat eme nts

SMS,CO SMS,C SMS,COR,CA R,CALLS OR,CAL LLS LS

SMS,COR,CA LLS

CHA AVL NGE OF SIGN ATU RE

AVL

AVL

AVL

AVL

CHA NGE

AVL

AVL

AVL

AVL

SMS,COR,C ALLS

AVL

OF ADD RESS E CHA NGE OF BAN K ACC OUN T DET AILS

AVL

AVL

AVL

AVL

AVL

POW AVL ER OF ATTR ONE Y

AVL

AVL

AVL

AVL

ONLI NE SHA RE TRA D ING FACI LITY

ODIN

S ANG T,ANG TT,5PAISA,II PLUS, I ,ANG D,ANG FLWESITE S A ELITE, S POWER

SPEEDe(easy)

[AVL-available, TT-trader terminal, ANG I-angel investor, ANG Dangel diet, ANG A-angel investor, ANG T-angel trade, IIFLIndiainfoline, IND-individual account, COR-courier, CAcommodities account, CMA-clearing member account, PA-pool account, S PLUS-smart plus, S ELITE- smart elite, SPOWER- smart power, CORP-corporate, HUF-hindu undivided family,PFAPartnership firm account,PRFA –Proprietorship firm account]

RESULTS: HDFC ,INDIA INFOLINE & HSBC provide more accounts based on group to the investor rather than the three accounts like individual account, joint account, NRI account, which other firms provide. 2) HDFC, HSBC and RELIGARE gives facility of three type of accounts based on securities & funds at the time of DEMAT account opening, i.e. DEMAT account, Trading account, & additional SAVING account. 3) All of the firms provide the facility of securities lending & borrowing. 4) These firms also provide the investors with the facility of inter depository transaction of securities. 5) An investor can avail the facility of pledge creation from atmost all of the above broking firms taken for comparision 6) All the firms’ freeze the investors demat account in the chance of not using it for transactions or securities trading. And also defreeze it on the request of the requestor. 7) The transaction statement of the daily transactions of trading is provide to the customer on quarterly basis by all the broking firms via sms, courier and active trading calls. 8) An investor can change the addresse or bank account details and even can change signature, if he/she want to do so by applying to their respective firms. 1)

Power of attorney service is provided by all broking firms. 10) ONLINE & OFFLINE services is provided by every firm. 9)

8) Findings

Maximum exposure is provided by REILGARE for the intraday trading, while other firms provided exposure not more than 8 times. An investor can avail the facility of maximum exposure for more returns. 2) Account maintenance charge of the firms varies between 200 Rs-600Rs. There are only two LIFE TIME account provider firms with no annual maintenance charge, INDIA INFOLINE and RELIGARE. 3) Account opening charge is NILL of HDFC , INDIA INFOLINE & RELIGARE 4) HDFC has the barier of minimum amount 0f 20 Rs for the intraday transaction. While HSBC has the lowest intraday charge of 0.01 % for intraday transaction. 5) SAVING account is much benefiter for he investor to transfer his demat securities funds. Three of the firms are providing these facilities of saving account with the opening of demat account. 6) As the account opening charge is nill and also there is no annual maintenance charge, and the most important thing the brokerage of the firm is much conventional RELIGARE can be one of the best firm through which one can invest in the securities market. 1)

9) Conclusion

Demat account is an easier way of holding funds; it is a secure way of earning. There is no paper work related with it which makes the transaction process easier and convenient. There are various broking firms operating in the market of which some of the leading firms are India infoline, hdfc securities, hsbc securities, angel broking. These firms offer various services like demat, mutual fund, insurance, commodity trading etc. By comparison it has been found that these firms are having different brokerage and different services for the customers. The customers can choose the brokerage firm and different service according to his needs and requirement.

As the comparision shows every firm work to its best and more or less all are providing the same facility and services to the investors. But the investor can choose according to the brokerage rate and convenience to the firm.

10) Bibliography

1) Url//http/: www.india infoline.com 2)url//http/:www.angelbroking.com 3)url//http/:www.hdfc.com 4)url//http/:www.traderji.com 5)url//http/:www.google.com 6)url//http/:www.nse.com 7)url//http/:www.bse.com