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 India’s 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

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 country’s 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 India’s 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)

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 country’s largest and premier custodian. It is owned by the India’s leading Banks and Financial Institutions such as:

IDBI Bank ICICI Bank

SU-UTI IFCI Ltd

LIC GIC

NIA NIC

UIC 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 PSU’s. 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 client’s 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.

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)

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

SHCIL BOARD OF DIRECTORS

BOARD OF DIRECTORS Sanjeev Ghai

S C Jain

S. Viswanathan

N. Balasubramanian

G. M. Ramamurthy

Anup Bagchi

Siby Antony

A. R. Sekar

Director R K Bansal Wholetime Company Secretary Shashikant L Nayak Statutory Auditors M/s. Kalyaniwalla & Mistry Internal Auditors M/s. Sridhar & Santhanam System Auditors M/s. AAA Technology Pvt. Ltd

M/s. Miel-e Securities Pvt. Ltd.

CURRENT MANAGEMENT TEAM

Director R K Bansal Wholetime

Executive Vice President R H Mewawala

Executive Vice President L Viswanathan

Sr. Vice President K S Iyenger

Sr. Vice President Manoj Borkar

Sr. Vice President J S Narang

Sr. Vice President Jaipal Menon

Sr. Vice President Dinesh Shah

Vice President S M Sawant

Vice President Umesh Punde

Vice President K V Ganapathy

Vice President V Sriram

Vice President B. Krishna Moorthy

Regional Managers Region

D. R. K Jagannath AP & Goa

Latika Roy South Karnataka

S. Radhakrishnan South 2

Umesh Punde Maharashtra

Prabhat Dubey Gujarat

Meena Pednekar Mumbai

Ajay Sharma North West

Amit Dassi North

Arup Bagchi East

R. Ravikumar North East

R. Anand Central

CHAPTER-3

PRODUCTS OFFERED BY SHCIL

(A) ADD 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.

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.

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 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 ‘on- tap’ 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 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 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 Benefits Interest is taxable under IT Act 1961. Exempt from Wealth Tax under Wealth Tax Act 1957

Transferability Non-transferable, non-tradable and cannot be used as collateral for borrowings

Nomination Available. Only sole holder or surviving holder can nominate

Repayment: Repayable on expiry of 6 years from date of issue. No interest 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 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.

(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 – India’s 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.

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. 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.

CHAPTER-4

SERVICES OFFERED BY SHCIL

(A) CUSTODIAL SERVICES: SHCIL provides first-rate custodial services to India’s leading Financial Institutions, Insurance Companies, Mutual Funds, Foreign Institutional Investors (FII’s), 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.

(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 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 client’s 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

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.

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, monitoring of CP redemptions, prepayments and providing customized reports like put/call forecasts, logical holdings and non-equity 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 client’s holding, timely collection of monetary and non-monetary 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 SHCIL’s clients and monitors put/call options. This team ensures timely monetary collection and deposits and keeps track of the outstanding amounts and reinvestments.

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 SHCIL’s 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. 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 check your account – related information, stock market reports and statistics, corporate benefits declared by companies, real-time quotes of scrip’s 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

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

SHCIL’s 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 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 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.

Chapter-5

SWOT ANALYSIS

STRENGTH

1. Wide coverage throughout the country.2. Promoted by 7 financialInstitutions.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

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

OPPURTUNITIES1. E – Broking.2. Acquisition of smaller DPs.3. Collaboration with banks.4. New products

THREAT1. 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 rural-urban areas).

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 technocrat’s team to handle workloads and provides the best of services to its customers.

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.

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.

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.

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 day’s tie-ups, M&A are a regular phenomenon in the market to beat the competition and create a place for itself. The merger and tie-

ups of financial corporations poses a bigger threat to SHCIL.

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 e-stamping as one of the services offered by SHCIL

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 focused Client Relation Team to manage your needs & queries. A single point contact for your 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 to various 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 global best practices

Insurance cover with international re-insurance

Full Confidentiality of business operations

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

CAPITAL STRUCTURE OF SHCIL

Promoter Holding pattern (%)

Life Insurance Corporation ( LIC) 14.97

Unit Trust Of India (UTI) 16.96

Industrial Development Bank ( IDBI) 16.96

Generel Insurance Corporation & it’s Subsidiaries ( GICI )

14.95

Industrial Finance Corporation of India (IFCI)

16.96

ICICI Ltd. ( ICICI Bank) 16.96

Industrial Investment Bank of India ( IIBI) 1.99

Others 0.25

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 of sanjauli, Cemetery, Dhalli and surroundings.

Under-mentioned were the questions asked from the individuals.

1) NAME2) PHONE NUMBER3) LOCATION

4) ANNUAL INCOME.5) HAVE YOU INVESTED

6)HOW MUCH YOU HAVE INVSESTED7) WHERE YOU HAVE INVESTED8) OTHER INVESTMENT9) IN WHICH COMPANY YOU HAVE INVESTED10) HAVE YOU HEARD ABOUT SHCIL?11) WOULD YOU LIKE TO MAKE INVESTMENT

THROUGH SHCIL IN FUTURE

The following is the analysis of survey:

ANALYSIS - 1

Out of the data only 0.89% of the people were having income more than 10 laces & 4.46% of the people were having income from 5 to 10 laces and remaining i.e. 94.65% were having income less than 5 laces.

10 lacs5-10 lacsless than 5 lacs

ANALYSIS – 2

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

Above 5lacsLess than 5lacs

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 SHCILNot like to invest inSHCIL

ANALYSIS – 4

From the data collected there were 81.25% people who had made investments and remaining 18.75% haven’t made any investments?

InvestedNot invested

ANALYSIS -5

There were about 25.00% people who have heard about SHCIL and 75.00% haven’t heard about SHCIL.

How many people heard about SHCIL

Heard about SHCILNot heard about SHCIL

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

InsuranceMutual FundStockBond

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 follows-LIC-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%

Chapter-8

CUSTOMERS VIEW REGARDING SHCIL

S.NO Feature Customer View1 Charges Very high2 Service Good3 Promotion Need to invest in promotion4 Personal touch Satisfactory5 Reliability Very reliable6 Speed Good7 Time management Satisfactory8 Awareness about SHCIL Less awareness9 Visit to SHCIL website Quite regular10 Depository service Good11 Billing service Unsatisfactory12 Other service Good13 Working environment Needs more improvement14 Dealing of employee

with customerGood

15 Relationship between clients and SHCIL

Good

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 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 SURVEYS.no NAME Phone No Location Annual

IncomeHave u Invt.

How Much

WhereInvt.

OtherInvt.

WhichComp.

Shcil Invt.

1 Chet Ram Chauhan 9816031504 Cemetary 5-10 lacs yes 5-10 lacs fixed deposit insuranceLIC,SBI,PNB yes yes2 Kushal Dhalta 9418589370 JubbalLess than 5 lacsyesLess than 5 lacs insuranceBirla sun life no no3 Lokinder Chauhan 9418057631 CemetaryLess than 5 lacsyesLess than 5 lacsfixed deposit insuranceBirla sun life,HDFCno no4 Mukesh khakta 9459571321 CemetaryLess than 5 lacsno insuranceBirla sun life no no5 Hitesh Khakta 9418558675 CemetaryLess than 5 lacsyesLess than 5 lacsfixed deposit insurancePost Office,LIC,SBIyes yes6 Hema 9736177802 CemetaryLess than 5 lacsno yes yes7 Yaspal thakur 9816156876 CemetaryLess than 5 lacsyes 5-10 lacs fixed deposit insuranceSBI,LIC,RD,Post officeno no8 Rajinder Chauhan 9805533303 Cemetary 5-10 lacs yesLess than 5 lacs insuranceHDFC,LIC,RD,yes no9 Amar chand chandel 9418116175 MatianaLess than 5 lacsyesLess than 5 lacsfixed deposit SBI no no10 Het Ram Chandel 9418646372 MatianaLess than 5 lacsyesLess than 5 lacs insurance LIC no no11 Hardev sarta 9418024331 CemetaryLess than 5 lacsyesLess than 5 lacsfixed deposit Post Office no no12 Prakesh Dhalta 9459380483 JubbalLess than 5 lacsyesLess than 5 lacsfixed deposit insurance LIC,SBI no no13 Pravesh Dhalta 9418091892 ShimlaLess than 5 lacsyesLess than 5 lacs insuranceBirla sun life no no14 Sandeep pantu 9459741382 DhalliLess than 5 lacsyesLess than 5 lacs insurance HDFC no yes15 Yash metha 9882300777 Sanjauli 5-10 lacs yes 5-10 lacs stock bondLIC,KARVEY,SUBHYOG SANCHAYyes yes16 Rajesh Thakur 981602593 DhalliLess than 5 lacsyesLess than 5 lacs insurance LIC no no17 Sushil Sharma 9816043555 DhalliLess than 5 lacsyesLess than 5 lacsfixed deposit insuranceCanara bank,LICno no18 Shailender Sharma 9882073163 KumarsonLess than 5 lacsyesLess than 5 lacsfixed depositmutual fundHDFC,BIRLA,RELIANCEyes no19 Rakesh Napak 0177-2645682 TheogLess than 5 lacsyesLess than 5 lacsfixed deposit insurance LIC no yes20 Vijay Sharma 9459569437 SanjauliLess than 5 lacsyesLess than 5 lacs insurance LIC no yes21 Priya kushal 9736630160 SanjauliLess than 5 lacsyesLess than 5 lacs insurance LIC no yes22 Hira singh ghezta 9816201615 CemetaryLess than 5 lacsnoLess than 5 lacs insurance LIC no no23 Vickey 9418462394 Matiana 5-10 lacs yes 5-10 lacs fixed deposit insuranceLIC,Post office no no24 Surinder verma 9816521424 DhalliLess than 5 lacsno no no25 Mast Ram Chauhan 9882063467 MatianaLess than 5 lacsyesLess than 5 lacs insurance LIC yes yes

26 Surat Ram Chauhan 9882180898 Matiana Less than 5 lacsno no no27 Promila Verma 9459979641 Dhalli Less than 5 lacsyes Less than 5 lacs insurance LIC no yes28 Rakesh Chauhan 9459274503 Matiana Less than 5 lacsyes Less than 5 lacs insurance LIC no yes29 Naresh Chauhan 9817577262 Matiana Less than 5 lacsyes Less than 5 lacsmutual fund insurance LIC no yes30 Rakersh Chauhan 9459959020 Matiana Less than 5 lacsyes Less than 5 lacs insurance LIC no yes31 Vikram Chandel 9459979648 Matiana Less than 5 lacsyes Less than 5 lacsbond ICICI yes no32 Ruchi 9459979646 Matiana Less than 5 lacsyes Less than 5 lacsfixed deposit insurance Post Office,LIC,SBIno no33 Rajan Verma 9418379688 Sanjauli Less than 5 lacsyes Less than 5 lacs insurance LIC no yes34 Poonam 9857136572 Sanjauli Less than 5 lacsyes Less than 5 lacsmutual fund stock HDFC,RELIANCE,SBIyes no35 Kamla Verma 9418647985 Batta kufarLess than 5 lacsno no yes36 Devi Ram Verma 9459246322 Batta kufarLess than 5 lacsno Less than 5 lacsmutual fund UTI yes yes37 Tara Chand 9459212511 Matiana Less than 5 lacsyes Less than 5 lacsfixed deposit insurance LIC,RELIANCEno no38 Shakuntla 9459385145 Matiana Less than 5 lacsyes Less than 5 lacsfixed deposit insurance LIC,Sindicate bank,SBIno no39 Balvinder Chauhan 9459979433 Matiana Less than 5 lacsyes Less than 5 lacs insurance LIC yes no40 Sarla 9817618028 Matiana Less than 5 lacsyes Less than 5 lacsstock insurance LIC,BAJAJ ALLIANZ,SBIyes yes41 Subhadra 9857201102 Matiana Less than 5 lacsyes Less than 5 lacsstock insurance SHCIL,LIC,BANK OF BADODRAyes yes42 Gyan Thakur 9418048596 Matiana Less than 5 lacsyes Less than 5 lacsfixed deposit insurance PNB,LIC no yes43 Sanjeev Thakur 9418127568 Matiana Less than 5 lacsyes Less than 5 lacsmutual fund bond UTI,RBI taxable bonds,LIC,Post Officeyes no44 Dinesh 9418658430 Matiana Less than 5 lacsyes Less than 5 lacsothers co-operative bankno yes45 Amit 9857647067 Kotkhai Less than 5 lacsyes Less than 5 lacsmutual fund insurance LIC no no46 Rita 9459046065 Cemetary Less than 5 lacsyes Less than 5 lacsmutual fund insurance LIC,Axis bank,HDFCno no47 Arun 9459032190 Malyana Less than 5 lacsyes Less than 5 lacsothers insurance LIC,PNB,Punjab and Sindh bankno no48 Arivind 9418901443 Tikkar Less than 5 lacsyes Less than 5 lacs insurance LIC yes yes49 Bantu 9459036652 Madhol Less than 5 lacsyes Less than 5 lacs insurance Max new york lifeno yes50 Deppak 9218868172 Kotkhai Less than 5 lacsyes Less than 5 lacsmutual fund insurance LIC,AVIVA LIFE INSURANCE,FUTURE GENERALYno yes51 Kaku Bekta 9805506088 New ShimlaLess than 5 lacsno no yes52 Bunny 9459033428 Dhalli Less than 5 lacsyes Less than 5 lacsbond insurance LIC,PNB,IDBIyes yes53 Bitu 9418215808 Cemetary Less than 5 lacsyes Less than 5 lacsfixed deposit insurance LIC,Post Officeno no54 Rajesh Khakta 9418102038 Kotkhai Less than 5 lacsno no yes55 Sweeti Khakta 9418213095 Cemetary Less than 5 lacsyes Less than 5 lacsothers insurance Aviva Life Insurance India Ltdno yes56 Chintu 9816177701 Sanjauli Less than 5 lacsyes Less than 5 lacsothers SBI yes no57 Dishu 9459282332 Jubbal Less than 5 lacsyes Less than 5 lacsothers SBI no yes58 Ganga Ram 9816060123 Cemetary Less than 5 lacsyes Less than 5 lacsfixed deposit insurance Indusland bank,AVIVA LIFE INSURANCEno yes59 Vijay Kumar 9459821673 Theog Less than 5 lacsyes Less than 5 lacsmutual fund stock LIC,ICICI,SBI,Post Officeno yes60 Geetu 9816765379 Cemetary Less than 5 lacsyes Less than 5 lacsothers PNB no yes61 Kapil 9816568916 Cemetary Less than 5 lacsno no no62 Baju Ram 9805374059 Sanjauli Less than 5 lacsyes Less than 5 lacsmutual fund stock AVIVA LIFE INSURANCE,SAHARA BANK,SBIno yes63 Chamel 9816341907 Sanjauli Less than 5 lacsyes Less than 5 lacsmutual fund insurance ICICI,HDFC,SBP,Axis bankno no64 Rajinder Chauhan 9816941179 Cemetary Less than 5 lacsno no no65 Gaurav 9418701300 Cemetary Less than 5 lacsyes Less than 5 lacsmutual fund insurance Kotak Mahindra,SBIyes yes66 Gopi Kishan 9817641006 Sanjauli Less than 5 lacsyes Less than 5 lacsfixed deposit insurance LIC,Canara bank,Uco bankno yes67 Hardyal Metha 9805866733 Sheelghat Less than 5 lacsyes Less than 5 lacsothers SBI no yes68 Hans Raj 9857844560 Bagi Less than 5 lacsyes Less than 5 lacs insurance LIC no no69 Hardik 9418670944 Cemetary Less than 5 lacsyes Less than 5 lacs insurance LIC no no

70 Inder 9816626226 Totu Less than 5 lacsyes Less than 5 lacsothers insurance LIC,SBI,HDFC,ICICIno yes71 Rajesh 9418171426 Gumma Less than 5 lacsyes Less than 5 lacsothers insurance LIC,PNB,Oriental bankno no72 Lokinder Chauhan 9816187733 Kotkhai Less than 5 lacsyes Less than 5 lacsothers Axis bank,Oriental bank,Canara bankyes yes73 Harish Sathan 9857844858 Kotkhai Less than 5 lacsyes Less than 5 lacs insurance LIC yes yes74 Man Singh Manta 9459581196 Rohru Less than 5 lacsyes Less than 5 lacsothers insurance LIC,SBI yes no75 Lakashya 9418040922 Sanjauli Less than 5 lacsno no yes76 Lucky 9459974211 Kotkhai Less than 5 lacsyes Less than 5 lacsothers insurance ICICI,SBI no yes77 Mahesh 9736277999 Matiana Less than 5 lacsyes Less than 5 lacsothers insurance LIC,PNB,UCO BANKyes no78 Ashish 9816131947 Shimla Less than 5 lacsyes Less than 5 lacsfixed deposit insurance LIC, no yes79 Mohit 9459747447 Kotkhai Less than 5 lacsyes Less than 5 lacs insurance LIC yes no80 Mohit 9459382808 Batta kufarLess than 5 lacsyes Less than 5 lacs insurance LIC no no81 Mukesh 9816539775 Tikkar Less than 5 lacsyes Less than 5 lacsothers insurance LIC no yes82 Joginder 9418561844 Kotkhai Less than 5 lacsyes Less than 5 lacs insurance Max new york lifeno yes83 Prakesh 9418190319 Kotkhai Less than 5 lacsyes Less than 5 lacsstock insurance SHCIL,LIC,GOIyes yes84 Rajinesh 9418588949 Cemetary Less than 5 lacsno no yes85 Rajinder 8894330029 Nankhari Less than 5 lacsyes Less than 5 lacsothers insurance LIC no no86 Rakesh Sharma 9418678867 Cemetary Less than 5 lacsyes Less than 5 lacsfixed deposit insurance LIC,PNB no no87 Ram Gopal 9418678867 Cemetary Less than 5 lacsyes Less than 5 lacs insurance LIC no no88 Rohit Chauhan 9418121601 Cemetary Less than 5 lacsyes Less than 5 lacsmutual fund insurance UTI,LIC,SBIno yes89 Sanjeev 9805648774 Batta KuffarLess than 5 lacsyes Less than 5 lacsbond insurance RBI,LIC,ICICI,SBIno yes90 Sunny 9418249524 Cemetary Less than 5 lacsyes Less than 5 lacsmutual fund insurance ICICI,LIC,SBIno yes91 Statish 9129005100 Cemetary Less than 5 lacsno no yes92 Shushil 9816432903 Tikkar Less than 5 lacsno yes yes93 Shushil 9459580009 Sanjauli Less than 5 lacsyes Less than 5 lacs insurance LIC no yes94 Sohan Thakur 9805409904 Nearva Less than 5 lacsno no yes95 Suresh 9817165267 Nankhari Less than 5 lacsyes Less than 5 lacs insurance LIC yes yes96 Surinder 9817210803 Shimla Less than 5 lacsno no no97 Vikram Thakur 9816041082 Shimla Less than 5 lacsno no yes98 Bupinder 9418579508 Matiana Less than 5 lacsyes Less than 5 lacs insurance LIC no yes99 Tarun 9418325511 Shimla Less than 5 lacsno yes yes

100 Suman 8091497305 Shimla Less than 5 lacsyes Less than 5 lacsfixed deposit insurance LIC,PNB yes yes101 Sanju 9882207200 Cemetary Less than 5 lacsyes Less than 5 lacsfixed deposit SBI no no102 Ume 9857747179 Totu Less than 5 lacsyes Less than 5 lacsfixed deposit insurance Bajaj Allianceno no103 Vickey 9418589859 Cemetary Less than 5 lacsno no no104 Yashpal 9805312759 Kotkhai Less than 5 lacsyes Less than 5 lacsstock insurance Birla sun lifeno no105 Aashu 9816022140 Sanjauli Less than 5 lacsyes Less than 5 lacs insurance LIC no no106 Anu 9459960394 Kotkhai Less than 5 lacsno no no107 Yogesh Thakur 9816036603 Kotkhai Less than 5 lacsyes Less than 5 lacsfixed deposit insurance LIC,PNB no no108 Pradeep 9418086921 Kotkhai Less than 5 lacsyes Less than 5 lacs insurance Birla sun lifeno no109 Arvind klanta 9857258693 Jubbal 5-10 lacs yes Less than 5 lacsfixed deposit insurance LIC,AVIVA no no110 Vijay Sharma 9459972174 Cemetary Less than 5 lacsyes Less than 5 lacs insurance LIC no no111 Ramesh 9816071964 Jubbal Above 10 lacsyes 5-10 lacs fixed deposit insurance LIC,HDFC,BAJAJno no112 Anil Chauhan 9418940957 Cemetary Less than 5 lacsyes Less than 5 lacs insurance LIC,BAJAJ,SBIno no

Chapter-11

BIBLIOGRAPHY

www.onlinestockholding.com

www.sebiindia.com

www.nsdl.com

www.moneycontrol.com

www.investopedia.com

www.shcil.com