DEMAT ACCOUNT DETAILS OF UNICON INVESTMENT SOLUTION.docx

8/9/2019 DEMAT ACCOUNT DETAILS OF UNICON INVESTMENT SOLUTION.docx

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A

PROJECT

ON

DEMAT ACCOUNT DETAILS OF UNICONINVESTMENT SOLUTION

Submitted by:

ROLY SRIVASTAVA

BBA- III

A7!"#$%

U&de' (uid)&*e +,:

F)*uty .uide:

M'/0 R)/1mi T'i2)t1i

S'0 Le*tu'e'

ABS

Amity U&i3e'/ity

4RESEARC5 PROJECT REPORT FOR T5E BAC5ELOR

BUSINESS ADMINISTRATION 46#-#%


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STUDENT’S CERTIFICATE

Certified that this report is prepared based on the summer internship project

undertaken by me in UNICON INVESTMENT SOLUTIONS PVT LTD.

from 9th May 2011 to 2nd Juy 2011! under the able guidance of M"#.Ra#h$%

T"%&ath% in partial fulfillment of the requirement for award of degree of

Bachelor of Business Administration (BBA) from Amity Uniersity! Uttar

"radesh#

$ate#

%ignature %ignature %ignature

&oly %riastaa 'rs# &ashmi ripathi 'r##"#%ahi

%tudent *aculty +uide $irector (AB%)

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FACULTY CERTIFICATE

*orwarded here with a summer internship report on ,DEMAT ACCOUNT

DETAILS - of UNICON INVESTMENT SOLUTIONS PVT LTD

submitted by! &oly %riastaa# .nrollment /o# A0112341156! student of

Bachelor of Business Administration (BBA ) 6 rd %emester (7141846)

his project work is partial fulfillment of the requirement for the degree of

Bachelor in Business Administration from Amity Uniersity ucknow

Campus! Uttar "radesh#

M"#.Ra#h$% T"%&ath%

A':; U/:.&%:;!

UC CA'"U%

UA& "&A$.%?

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Ta*+ o, Cont+nt#-

• :ntroduction to Unicon

• 'ission @ ision of Unicon

• "roducts and %erices offered by Unicon

.quity

Commodity

• =bjectie of the study

•

:ntroduction• >hat is $emat

• Ac opening

• Beneficiary Ac

• $ocuments required for $emat Account

• $ematerialisation Account

•

$emat "rocess• $epository @ $epository "articipant

• /ational %ecurities $epository imited (/%$)

• Central $epository %erices imited (C$%)

• "hysical %egment

• :nternational %ecurities :dentification /o# (:%:/)

• &esearch 'ethodology

• &esearch $esign

• %ample $esign

• $ata Collection echnique

• 'ethod used for Analysis of %tudy

• imitations of the &esearch %tudy

• %uggestions @ &eccomendations

• Bibliography

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• uestionnaire

INTRODUCTION TO UNICON

Unicon has been founded with the aim of proiding world class inesting

eperience to hitherto undersered inestor community# he technology

today has made it possible to reach out to the last person in the financial

market and gie him the same leel of serice which was aailable to only

the selected few#

Unicon gies personaliDed premium serice with reasonable commissionon

the /%.! B%. @ $.&A:.% market through their equity broking arm

Unicon %ecurities priate ltd# and commodities on /C$.E and 'CE

through their Unicon Commodities "t td# >ith their sophisticated

technology we can trade through our own computer and if we want human

touch we can also deal through our relationship managers out of more than

411 branches#

Unicon also gies personaliDed serices on insurance (ife and +eneral) @

:nestments ('utual funds @ :"=F%) needs through their :nsurance @

:nestment distribution arm Unicon :nsurance Adisors "t# td# heir

tailormade customiDed solutions are perfect match to different financial

objecties# heir distribution network is backed by in house back office

support to sere their customers promptly#

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M%##%on and V%#%on o, Un%on In/+#t$+nt Sout%on#

MISSION-

o create long term alue by empowering indiidual inestors through

superior financial serices supported by culture based on highest leel of teamwork! efficiency and integrity#

VISION-

o proide the most useful and ethical inestment solutions guided by alues

drien approach to growth! client serice and deelopment#

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PRODUCT 0 SERVICES OFFERED 12 UNICON

Unicon deals with a numbers of products @ sericesG

8.quity

8Commodity

8"riileged Client +roup

8"roperties

8$istribution

8/&: %erices

8Back =ffice

E3u%ty

Unicon offers a unique feature of a single %creen rading "latform of

/%.! B%. @ $eriaties# Unicon offers both =ffline @ =nline trading

platforms# ;ou can >alk in or place your orders through telephone at any

of our branch locations#

=nline rading "roductsG

• Unicon plus

• Unicon %wift

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Unicon "lus8

Browser based trading terminal that can be accessed by a unique :$ and

password# his facility is aailable to all our online customers the moment

they get registered with us#

Unicon %wift8

Application based terminal for actie traders# :t proides better speed!

greater analytical features @ priority access to &elationship 'anagers#

Co$$od%ty

Unicon offers a unique feature of a single screen trading platform in'CE

and /C$.E#Unicon offers both =ffline @ =nline trading platforms# ;ou can

>alk in or place your orders through telephone at any of our branch location

=nline commodity internet trading platform through unifle#

• ie 'arket >atch for commodity market (/C$.E! 'CE) in one

%creen

• Add any number of scrips in the 'arket >atch

• ick by tick lie updation of :ntraday chart

• +reater eposure for trading on the margin aailable

• Common window for market watch and order eecution

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O1JECTIVE OF T4E STUD2

he main objectie of the study is to know about the potential of

the market regarding peopleFs dealing in share market#

• o know the role of DEMAT ACCOUNT #

• o know the procedure of opening DEMAT ACCOUNT #

• he objectie is to know that how many people in the city are

aware of the UNICON SECURITIES PVT. LTD.

• o know where people hae already opened their demat ac and on

what basis#

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INTRODUCTION

he trading on stock echanges in :ndia used to take place through open out

cry without use of information technology for immediate matching or

recording of trades# his was time consuming and inefficient# his imposed

limits on trading olumes and efficiency# :n order to proide efficiency!

liquidity and transparency! /%. introduced a nation8wide on8line fully

automated screen based trading system where a member can punch into the

computer quantities of securities and the prices at which he likes to transact

and the transaction is eecuted as soon as it finds amatching sale or buy

order from a counter party# %creen based electronic system electronically

matches orders on a strict pricetime priority and hence cuts down on time!

cost and risk of error! as well as on fraud resulting in improed operational

efficiency# :t allows faster incorporation of price sensitie information into

preailing prices! thus increasing the informational efficiency of markets# :t

enables market participants! irrespectie of their geographical locations! to

trade with one another simultaneous! improing the depth and liquidity of the

market# :t proides full anonymity by accepting orders! big or small! from

members without reealing their identity! thus proiding equal access to

eerybody# :t also proides a perfect audit trial! which helps to resole

disputes by logging in the trade eecution process entirety# he sucked

liquidity from other echanges and in the ery first year of its operation!

/%. became the leading stock echange in the country! impacting the

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fortunes of other echanges and forcing them to adopt %B% also# oday

:ndia can boast that almost 411H trading take place through electronic order

matching#

/ow dematerialisation of shares is introduced ,A new concept- which

conerts paper based physical trading into electronic trading# :t is a safe and

conenient way to hold securities# %creen based trading system helps in

faster transfer of securities and no stamp duty is required on transfer of

securities# he trading system operates on a strict price time priority# All

orders receied on the system are sorted with the best priced order getting the

first priority for matching i#e#! the best buy order match with the best sell

order# =rders are matched automatically by the computer keeping the system

transparent! objectie and fair# he trading system proides tremendous

fleibility to the users in terms of kinds of orders that can be placed on the

system# he trading system also proides market information online#

:n order to promote dematerialiDation of securities! /%. joined hands with

leading financial institutions to establish the /ational %ecurities $epository

td# (/%$)! the first depository in the country! with the objectie of

enhancing the efficiency in settlement systems as also to reduce the menace

of fakeforged and stolen securities# his has ushered in an era of

dematerialised trading and settlement# %.B: has made dematerialised

settlement mandatory in an eer Iincreasing number of securities in a phased

manner! thus bringing about an increase in the proportion of shares deliered

in dematerialised form# here is an increasing preference to settle trades!

particularly in high alue securities!in demat form# %uch high leel of demat

settlement reassures success of rolling settlement#

(4AT IS DEMAT-

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:n :ndia! a demat account! the abbreiation for dematerialised account! is a

type of banking account which dematerialiDes paper8based physical stock

shares# Conersion of %ecurities from "hysical ("aper) 'ode into .lectronic

'ode is Called $ematerialisation# he Client opens $emat Account with any

$"# Upon $emat! the Certificates are destroyed and credit entry of eactly

equal number of %ecurities is created in $epository in .lectronic mode# he

B#=# account of holder is credited and the securities loose their identities#

he dematerialised account is used to aoid holding physical sharesG he

shares are bought and sold through a stock broker#

his account is popular in :ndia# he market regulator! securities and

echange board of :ndia (%.B:) mandates a demat account for share trading

aboe 511 shares# As of April 7112! it became mandatory that any person

holding a demat account should possess a permanent account number ("A/)!

and the deadline for submission of "A/ details to the depository lapsed on

January 7110#

$ematerialisation is the process by which physical certificates of an inestor

are conerted to an equialent number of securities in electronic form and

credited in the inestorKs account with its $"# :n order to dematerialiDe

certificatesL an inestor will hae to first open an account with a $" and then

request for the dematerialisation of certificates by filling up a

dematerialisation request form M$&*N! which is aailable with the $" and

submitting the same along with the physical certificates# he inestor has to

ensure that before the certificates are handed oer to the $" for demat! they

are defaced by marking O%urrendered for $ematerialisationO on the face of

the certificates#

ACCOUNT OPENIN)

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o aail the serices of a depository an inestor is required

to open an account with a depository participant of any

depository#

PROCEDURE FOR OPENIN) AN ACCOUNT-

A demat account are opened on the same lines as that of a Bank Account#

"rescribed Account opening forms are aailable with the $"! needs to be

filled in# %tandard Agreements are to be signed by the Client and the $"!

which details the rights and obligations of both parties#

Phe $" officials will make aailable the releant account opening form

(depending on whether the client is a retail inestor or corporate

clientclearing member) and specify the list of documents regarding

references that should be submitted along with the form# :t will also gie a

copy of the releant agreement to be entered with the client! in duplicate#

Phe client will submit the duly filled in account opening form and client has

to isit personally for opening the account in $"# he $" officials hae to do

in person erification and affi the ,:/ ".&%=/ .&:*:CA:=/- stamp

on the account opening form# :t should also furnish such documents

regarding references! as specified by the $"! along with the account opening

form# After eecuting the agreement the client has to forward it to the $"#

Phe $" officials will erify that the account opening form is duly filled in#

:t will also erify the enclosed documents! if any# :ncomplete forms will be

forwarded to the client for rectification#

P*or Corporate Clients! the $" officials will erify if the board resolution for

the authoriDed signatories is enclosed#

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P:n case the documents are not proper! the $" officials will reject the form

and intimate the client of the same! stating the reasons for doing so#

P:f the form is in orderL the $" officials will accept the same and affi the

stamp ,erified with original- on each and eery proof after seeing the

original proofs#

PAfter completion of all documentation! the $" officials will erify the pan

from income ta website# And affi the stamp ,"A/ .&:*:.$- with date

and sign on the stamp#

Phe $" officials will enter the client details as mentioned in the account

opening form in the $"' (software proided by /%$ @C$% to the

"articipant) screen proided for the purpose# :n case of /%$ Ac opening

the % Assist will capture all the details in the $"' and record the clientFs

signature (on the form) as specimen for authoriDations in the future#

PAfter entering client details in the system! a client account number will be

generated by the $"'# he $" officials will enter this in the account

opening form# After that the officers will erify the details in the $"'

captured by the % Assist# and actiate the account#

Phe $" officials are not allowed to gie the $emat ac no to the clients until

the ac is actiate! this is applicable for both /%$ @ C$%#

P>hen the demat ac is actiated the $" officials hae to send the client

master and the copy of agreement between $" and client at the clientFs

address# he account holder is called KBeneficial =wnerK in a depository

system and the account is known as KBeneficiary AccountK#

F+atu"+# o, 1+n+,%a"y Aount5

P/o minimum balance is required to be retained in a beneficiary account#

PAn inestor can close a beneficiary account with one $" and open an

account with another $"#

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Po dematerialise eisting physical holdings! the beneficiary account must be

opened in the same ownership pattern in which the securities are held in the

physical form e#g#!if one certificate is in indiidual name and another

certificate is jointly held by E @ ;!two different accounts should be opened#

?oweer! in case of joint holders! securities can be dematerialised in the

same account een though share certificates are in different sequence of

names# .#g#! shares held in joint names of E @ ; can also be dematerialised

in an account opened in the names of ; @ E as well by submitting an

additional form (ransposition *orm) along with $emat &equest forms to the

dp# ?oweer! the shares held jointly by E @ ; cannot be dematerialised in an

account opened in the name of only E or only ; or any#

Dou$+nt# to *+ "+3u%"+d ,o" d+$at aount-

P"roof of identity8 ("=:)

P"assport

Poter :$ Card

P$riing icense

P"an card with photograph

P:dentity card with applicants photograph issued by

8Central or state goernment or its department

8%tatutory&egulatory authorities

8"ublic %ector Undertakings

8%cheduled Commercial Banks

8"ublic *inancial :nstitutions

8College affiliated to Uniersities

P"oo, o, add"+##- 6POA7

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P&ation card

P"assport

Poter :$ card

P$riing icense

PBank "assbook

7#&esidence landline telephone bill (not more than 7 months old)

6#eae @ license agreementagreement to sell (duly attested)

3#%elf declaration by supreme courthigh court judges! giing the new

address in respect of their own accounts#

•:dentity card with applicants photograph issued by

4#Central or state goernment and its department

7#%tatutoryregulatory authorities

6#"ublic sector undertakings

3#%cheduled commercial banks

5#"ublic financial institutions

2#College affiliated to uniersities#

•"assport8siDe photograph

•Copy of "A/ card along with original "A/ card for erification

1an8 d+ta%#9

•Copy of cancelled cheque with printed name from the bank#

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•Copy of bank passbook with name and address and copy of cancelled

cheque#

•Bank statement with name and address (duly authoriDed by the

bank! if statement is on plain paper) not more than 3 months old

and copy of cancelled cheque of ':C& @ bank detail erification#

In a#+ o, $%no"

•$ate of birth certificate duly notariDed

•"roof of address and identity documents of the guardian both

minor and guardianFs photograph and guardian to sign across both

photographs

•"A/ card of minor as well guardian is mandatory

In a#+ o, NRI

•*oreign address and &B: approal date attested copy of &B:

approal

• /&=8:ndian address along with proofs

•Bank account details

In a#+ o, :o%nt hod%n;#

:n case of joint holdings! "=: and "=A documents along with "A/ card

must be submitted in respect of all account holders# =riginal documents must

be taken to the $" for erification#

he $" will also proide a copy of the $"8Client agreement#

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Aount o&+n%n; ,o"$ "+3u%"+ th+ a&&%ant# to ;%/+ th+

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applicant must furnish original or attested copies ofthe power of attorney and

the approal letter from &B: permitting them to inest! as the case may be#:f

the account holder is an *:: or an =CB! %.B: registration details along with

attested copy of registration certificate issued by %.B: and authorisation

letter isrequired#

6+7 D+ta%# o, *an8 aount -$etails of bank account of the

account holder! including the nine digit code number of the bankand branch

appearing on the ':C& cheques issued by the bank hae to be filled in the

application form# Companies use this information for printing them on

diidendinterest warrants etc#

6,7 No$%nat%on d+a"at%on - A beneficial owner can make a nomination

of his account in faour of any person by filing the nomination form with his

$"# %uch nomination is considered to be conclusie eidence of the account

holderK(s) disposition in respect of all the securities in the account for which

the nomination is made#

6;7 Stand%n; In#t"ut%on - a facility of standing instruction is

proided to the inestors for receiing securities to the credit of

their accounts without giing a separate receipt instruction# he demat

account cannot be operated on Oeither or suriorO basis like the bank

account# :n case of the joint account for the beneficial owners! all the joint

holders hae to sign the account opening form# he inestor will submit to

his $" the duly filled in account opening form @ $"8client agreement along

with the documents# he $" will erify whether the account opening form

has been duly filled in or not# ?e will also erify the submitted documents#

*or corporate inestors! the $" will also erify whether the board resolution

for the authoriDed signatories has been enclosed# he $" will ensure that

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clientKs signature is recorded on the form which will sere as specimen for

authoriDations in future# :f the application form and documents are in order!

then the $" will accept them and gie an acknowledgement slip duly signed

and stamped to the client# he $" will eecute the agreement and gie a

copy of it to the client# After completion of all documentation! the $" will

enter the client details as mentioned in the account opening form in the $"'

(software proided by /%$ to the $") screen proided for the purpose#

After entering client details in the system! a client account number will be

generated by the $"'# he $" will enter this in the account opening form#

On #u+##,u o&+n%n; o, th+ aount! th+ DP


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REASONS FOR DEMATERIALISATION RE=UEST

REJECTION

4# he quantity of shares mentioned in the $&* is more than the actual

certificates sent#

7# he quantity of shares mentioned in the $&* is less than the actual

certificates sent#

6# he certificates sent are fake#

3# he certificates sent are reported stolen#

5# =riginal certificates present are those for which the duplicates hae

already been issued#2# .ndorsements on the certificates are forged#

0# %ecurities stand on a different name than those mentioned in the $&*#

Q# he details mentioned on the certificates don not match with the

details on the $&*! or the order of the holderFs name on the $&* is

different from the names gien on the certificates# he scrutiny bt the

$" is incomplete#

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9# he securities attached $&* does not pertain to the &@ agent to

whom the $&* is sent#

41# .lectronic request receied but physical certificates are not receied

within 45 days#44# %pecimen %ignature on the $&* differs from the signatures recorded

with the &egistrar ransfer Agents#

47# he certificates sent hae a court injunction against them

P"+aut%on#9

PCorporate inestors to enclose 'emorandum of Associationrust

deedBoard resolution for the authoriDed signatories along with the account

opening form#

P$etails with respect to the bank account details of an inestor must be

indicated in the space proided for the same in the account opening form#

P:f an inestor is interested in aailing the facility of standing instructions for

credits to his account! then such instructions maybe gien to the $"#

=therwise! he will need to gie a receipt instruction to his $" for receiing

credits to his account#

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1ENEFITS OF DEMATERIALISATION

• /o stamp duty for transfer of securities in the $epository %ystem# :n the

case of physical shares! stamp duty of 1#75H of sale alue is payable on

transfer of shares#

P.limination of bad delieries and all risks associated with physical

certificates such as loss in transit! theft! mutilation! damage! etc#

P*acility for freeDinglocking of inestor accounts to make it non8operational

for specified period#

P:nstead of filling up transfer deed(s) a simpler form is to be gien to the $"#

P*acility to pledge and hypothecate securities# "ledging $ematerialised

securities is easier and adantageous as compared #

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DEMAT >PROCESS

4#he registered holder of the securities makes the request#

7#%ecurities must be recognised by $epository as eligible#

6#Client submits $&* @ physical certificates to $"# $" checks securities#

3#Client defaces certificates and $" punches two holes on name of company#

5#$" enters demat request in system for $epository#

2#$" dispatches certificates along with $&* to &@#

0#$epository records the details and sends to &@#

Q#&@ agent erifies the details and confirms to $epository#

9# $epository credits the demat securities to B= ac of client and intimates

$" electronically#

41#$" issues statement to client#

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INFORMATION NEEDED FOR DEMAT ACCOUNT

An inestor has to gie his bank account details at the time of account

opening# :t is for the protection of inestorFs interest# he bank

accountnumber will be mentioned on the interest or diidend warrant! so

thatsuch warrant cannot be encashed by any one else#*urther! cash

corporatebenefits such as diidend! interest will be credited to the

inestorsaccount directly through the .C% (.lectronic Clearing %erice)

facility!whereer aailable! by the company#

An %n/+#to" an han;+ th+ d+ta%# o, h%# *an8 aount. %ince in the

depository system monetary benefits on the security balances are paid asper

the bank account details proided by the inestor at the time ofaccount

opening! the inestor must ensure that any subsequent change inbank

account details is informed to the $"#

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An In/+#to" #houd %$$+d%at+y %n,o"$ h%#?h+" DP %, th+ add"+## o,

th+ %n/+#to" han;+#! who in turn will update the records# his will

obiate the need of informing different companies#

An %n/+#to" an o&+n $o"+ than on+ aount %n th+ #a$+ na$+


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hink of it like a bank# he head office where all the technology rests and

details of all accounts held is like the depository# And the $"s are the

branches that cater to indiiduals# At present two $epositories iD# /ational

%ecurities $epository imited(/%$) and Central $epository %erices (:)

imited (C$%) are registered with %.B:#

NATIONAL SECURITIES DEPOSITOR2 LIMITED 6NSDL7

/%$ was the 4st depository organiDation promoted by :$B:! U: and

/ational %tock .change (/%.)# /%$ was setup to proide electronic

depository facilities for securities being traded in capital market# he

depository ordinance was promulgated by the +oernment of :ndia in

%eptember 4995# he %ecurities and .change Board of :ndia (%.B:) issued

guidelines for depository in 'ay! 4992#

/%$ has minimum net worth of &s 411 Crores# /%$ deals with shares in

dematerialiDed form through depository participants who are agents of

inestor banks! stockbrokers and financial institutions# /%$ depository

participant can be a public financial institution! bank! custodian! registered

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stock8broker or a non8banking financial company subject from the approal

from the depository company and %.B:# /%$ aims at ensuring the safety

and soundness of :ndian capital market by deeloping settlement solutions

that increase efficiency! minimise risk and reduce costs#

CENTRAL DEPOSITOR2 SERVICES 6INDIA7 LIMITED

6CDSL7

C./&A $."=%:=&; %.&:C.% :':.$ (C$%) is second

depository in :ndia! is setup to meet the objectie the act and to fulfil the

userFs need# C$% is secure ,Certificate of Commencement- of business on

*eb Q! 4999 from %.B:# he balances in the inestorsF account recorde and

maintained with C$% can be obtained through the $"# he $" is required

to proide the inestors at regular interals! a statement of account! which

gies the details of the securities! holdings! and transactions# he depository

system has effectiely elaminated paper based certificates! which were prone

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to be fake! forged! counterfeit resulting in bad delieries# C$% offers an

efficient @ instantaneous transfer of securities#

C$% was promoted by Bombay %tock .change imited (B%.) jointly

with leading banks such as %tate Bank of :ndia! Bank of :ndia! Bank of

Baroda! ?$*C Bank! %tandard Chartered Bank! Union Bank of :ndia and

Centurion Bank# .ach @ eery actiity of C$% stern from the essential

reason behind forming this depository! i#e# ! to encourage :ndiaFs indiidual

inestors to benefit from effectiely participating in a depository#

S+"/%+ &"o/%d+d *y D+&o#%to"y #y#t+$

P $ematerialisation (usually known as $.'A) is conerting physical

certificates to electronic form#

P &ematerialisation! known as &.'A! is reerse of $.'A! i#e# ! getting

physical certificates from the electronic securities#

P ransfer of securities! change of beneficial ownership#

P %ettlement of trades done on echange connected to the depository#

P "ledge?ypothecation of $.'A shares! iD# loan against shares#

P .lectronic credit in public offering of the companies#

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P /on8cash corporate benefits! iD# Bonus or rights8direct credit into

electronic form#

P $epository restrict the risk of fraud#

Th+ ha";+# ,o" aount o#u"+ and #+u"%t%+# t"an#,+" du+

to aount o#%n;.

%.B: ide Circular /o# '&$$o"$epCir877 15 dated /oember 19!7115

adised that with effect from January 19! 7112! no charges shall be leied by

a depository on $" and consequently! by a $" on a Beneficiary =wner (B=)

when a B= transfers all the securities lying in his account to another branch

of the same $" or to another $" of the same depository or another

depository! proided the B= Accounts a transferee $" and at transferor $"

are one and the same! i#e# identical in all respects#:n case the B= Account at

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transferor $" is a joint account! the B= Account a transferee $" should also

be a joint account in the same sequence of ownership#

All other transfer of securities consequent to closure of account! not fulfilling

the aboe8stated criteria! would be treated like any other transaction and

charged as per the schedule of charges agreed upon between the B= and the

$"#

F"++@+ o" o8 o, an aount

:nestors can freeDe or lock their accounts for any gien period of time! ifso

desired# Accounts can be froDen for debits (preenting transfer ofsecurities

out of accounts) or for credits (preenting any moements ofhindrances into

accounts) or for both#

T"ad%n; ? S+tt+$+nt

raditionally settlement system on :ndian stock echanges gae rise to

settlement risk due to the time that elapsed before trades were settled by

physical moement of certificates# he process of physical moing the

securities from seller to his broker to clearing corporation to the buyerFs

broker and finally to the buyer took time with the risk of delay somewhere

along the chain# /ow depository holds securities in dematerialised form# he

procedure for buying and selling dematerialised securities is similar to the

procedure for buying and selling physical securities#he difference lies in the

process of deliery (in case of sale) and receipt (in case of purchase) of

securities#

In a#+ o, &u"ha#+9-

Phe broker will receie the securities in his account on the payout day

Phe broker will gie instruction to its $" to debit his account and credit

inestorKs account

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P:nestor will gie R&eceipt :nstruction to $" for receiing credit by filling

appropriate form# ?oweer one can gie standing instruction for credit in to

ones accounts that will obiate the need of giing &eceipt :nstruction eery

time#

In a#+ o, #a+9-

he inestor will gie deliery instruction to $" to debit his account and

credit the brokerFs account# %uch instruction should reach the $"Fs office at

least 73 hours before the pay8in as other wise $" will accept the instruction

only at the inestorFs risk#

Stand%n; In#t"ut%on ;%/+n %n th+ aount o&+n%n; ,o"$

:n a bank account! credit to the account is gien only when a Kpay inK slip is

submitted together with cashcheque# %imilarly! in a depository accountK

&eceipt inK form has to be submitted to receie securities in the account#

?oweer! for the conenience of inestors! facility of Kstanding instructionK is

gien# :f you say K;esK for standing instruction! you need not submit K&eceipt

inK slip eerytime you buy securities# :f you are particular that securities can

be credited to your account only with your consent! then do not say KyesK Mor

tick N to standing instruction in the application form#

D+%/+"y In#t"ut%on S%& 6DIS7 and th+ &"+aut%on#


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P.nsure and insist with $" to issue $:% book#

P.nsure that $:% numbers are pre8printed and $" takes acknowledgment for

the $:% booklet issued to inestor#

P.nsure that your account number Mclient idN is pre8stamped#

P:f the account is a joint account! all the joint holders hae to sign the

instruction slips# :nstruction cannot be eecuted if all joint holders hae not

signed#

PAoid using loose slips#

P$o not leae signed blank $:% with anyone iD#! brokersub8broker#

P


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ending @ Borrowings has to be done through ,Approed :ntermediaries-

registered with %.B:# he approed intermediary would borrow the

securities for further lendings to borrowers# ender of the securities @

borrowers of the securities enter into separate agreements with the approed

intermediary for ending @ Borrowing the %ecurities#

ending @ Borrowing is affected through the depository system#

;ou can lend your securities through Approed :ntermediaries registered

with %.B:#

=ne can lend hisher $.'A securities by entering into an agreement with

the approed intermediary to be a lender under this scheme# After that ! you

may lend securities anytime by submitting lending instructions to your $"#

:ntermediary may return these securities at any time or at the end of the

agreed period of lending# :ntermediary has to repay the securities together

with any benefits receied during the period of the loan#

=ne can receie the corporate benefits which would accrue on these

securities during the period of lending# he benefits will be gien to the

intermediary! borrower# ?oweer! wheneer the securities are being returned!

recalled intermediary or borrower will return his securities together with the

benefits receied#

P42SICAL SE)MENT

Chan;+ %n Na$+ ? Statu#-

All requests for change of name should be accompanied by a copy of the

notification in =fficial +aDette or a /ewspaper#

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8&equest for change of name consequent upon marriagediorce should be

accompanied with marriage certificatediorce decree#

8*or effecting change of status from minor to major! please send proof of age

(such as attested copy of Birth Certificate or %chool eaing Certificate)

8:n the case of limited companies! a certified copy of the Certificate of

:ncorporation consequent to Change of /ame issued by the &egistrar of

Companies should be submitted along with the 'emorandum @ Articles of

Association

8he new specimen signature duly attested by holderKs banker should be

lodged with the Company to take on record the new signature#

Chan;+ o, Add"+##

"lease inform the &@A iD :ntegrated .nterprises (:ndia) imited

immediately if there is any change in address! quoting *olio /o# $uly signed

by the main (4st) holder as per specimen signature recorded with us# his is

the reason for which we would adise you not to send change of address

request by mail# :f shares are held in demat form! please adice your $"

regarding change of address#

Lo## o, Sha"+ C+"t%,%at+#

Any communication to the Company regarding loss of share

certificatesshould always be signed by the shareholder as per specimen

signatureregistered with the Company! accompanied by *:& lodged with

localpolice station giing full details of lost certificate(s) such as

certificate(s)/os#! $istinctie /os# etc#

8 "lease immediately apply for injunction order in appropriate Court of aw

for stopping transfer! giing full details of Certificate /os#! $istinctie /os#

etc#

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8 Upon receipt of such communication! the procedure to be followed for

obtaining duplicate share certificates will be adised

No$%nat%on

/omination when shares are held in physical form#

/omination will enable smooth inheritance of ownership of the shares by the

/ominee without any procedural difficulties# ("resently! there is no difficulty

where shares are registered in joint names# But if the shares are held in an

indiidual name! addition of a joint name can only be done as a transfer!

inoling share transfer form! stamp duty! surrender of original certificates

etc# *ollowing the nomination procedure eliminates all thisinconenience)#

herefore! if shares are held in a single name! with the intention of holding

them for some more time! then please adise nomination immediately

without delay#

Foo


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filed with the company! without any further reference to the legal hiers of a

deceased indiidual shareholders#

P >here the space proided in the form is not sufficient! share holders are

requested to attach separate sheeta giing details of distinctie number of

shares#

P he nomination form should be filled iin duplicate with the company! who

will return one copy there of to the shareholders#

P Although form to be as prescribed does not proide for specimen signature

of the nominee! this has been suggested in ordr to facilitate smooth

transmission of title to the nominee when the need arises#

P "lease note that if physical shares are subsequently coered into electronic

form! any nomination already filled will ceased to hae affect! the

nomination details furnished to the depository participants will preail

thereafter#

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ISIN

Int+"nat%ona S+u"%t%+# Id+nt%,%at%on Nu$*+"

.ach of the securities dematerialised in the /%$

depository bias a distinctie :%:/8 an identification number# :%:/ is a unique

identification number for each security issued in any of the international

standard organisation (:%=) member countries in accordance with the :%:/

standard (:%= 2422)# :%= 2422 was deeloped for use in an international

(cross8border) as well as domestic trade# :%:/ is a twele8character long

identification mark# :t has 6 components8

A pre8fi! a basic number and a check digit# he pre8fi is a 78letter country

code a stated under :%= 6422 (:/ for :ndian)# he basic number comprises 9

alpha numeric characters (letter and digits)# he check digits at the end of

the :%:/ is computed according to the modulus 41 ,$ouble8Add8$ouble-# :t

establishes that the :%:/ is alid#

%ecurities issued by the same company! issued at different times or carrying

different rights! terms @ conditions are considered different securities for the

purpose of allocating :%:/ and are allotted distinct :%:/s# :n :ndia! %.B:

assigns :%:/ to arious publicly traded securities# $ifferent :%:/s are

allocated to the physical @ dematerialised securities of the same issues#

%.B: being the national numbering agency for :ndia has permitted /%$ to

allot international securities identification number (:%:/) for $.'A shares#

he :%:/s allotted by /%$ does not at any point of time breach the

uniqueness of :%:/ of physical form for the same security# :%:/ for a

security is allotted when the security is admitted to /%$# he numbering

system is simple# he numbering system of :%:/ is in compliance with the

structure of :%:/ adopted by %.B:#

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Int+"nat%ona S+u"%t%+# Id+nt%,%at%on Nu$*+"

P :ssued by international standard organisations (:%=) member countries in

accordance with :%= 2422#

P :%:/ is a 47 digit alpha numeric number#

P :t has 6 components! pre8fi! basic and check digit#

P "re8fi is a 7 letter country code! i#e#! :/ for :ndia#

P he basic number has 9 alpha numeric characters#

P he last digit is check digit# :t ensures the :%:/ is alid#

40


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Nu$*+"%n; Sy#t+$ O, ISIN

he numbering structures for securities in /%$ is of 7 digit alpha numeric

string# he first 7 characters represent country code! i#e#! :/ (in accordance

with :%= 6422)# he 6rd character represents the issuer type as detailed

belowG

:%%U.&% ;".

:ssuer ype Code Allotted

Central +oernment A

%tate +oernment B

'unicipal Corporation C

Union erritories $

Company! %tatutory Corporation! Banking Company .

'utual *und including U: *

he list may be epanded per the needs# 'aimum issuer types can be 65

(A8S and 18Q# he pro8rata diidend shares are identified by 9#) he net 3

characters (fourth to seenth character) represent company identity# he first

6 characters are numeric# he fourth character is alpha character# he

numbering begins R114AF and continues till R999AF and proceeds to R114BF#

he net 7 characters (the Q th and 9th characters) represent security type for a

gien issuer# Both the characters are numeric# he net 7 characters (the 41 th

and 44th characters) are serially issued for each security of the issuer entering

the system# ast digit is double8add8double check digit#

41


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he security types are planned which may be epanded as per the need as

detailed below9-

S+u"%ty ty&+ Cod+

.quity 14

/on oting equity 17

Conertible preference shares 16

/on conertible preference shares 13

'utual fund units Iclose ended 15

'utual fund units8open ended 12

%ecured debentures 10

Unsecured debentures 1Q

&egular return bonds8promissory notes 19

*loating rate bonds 41

$eep discount bonds

11

%tep discount bonds

12

>arrants

13

42


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RESEARC4 MET4ODOLO)2

&esearch methodology refers to the search for


44/53

assessment and of course comparison of arious alternaties#he finally

selected line of action must ensure that this is indeed best one as against

those rejected by the researcher# :n addition! the circumstances and problems

also haing a bearing in the choice# o count a few! limitations could be

imposed in the sense of funds aailable! time and urgency in conducting the

research# %o the final choice must be based on assessment of its adantage @

disadantage when weighted against affecting factors#

&esearch methodologies can be said to hae four major components namely8

&esearch design! sample design! data collection procedure and methods of

analysing and reporting the findings#

R+#+a"h D+#%;n-

here are search problems haing been formulated in clear cut terms! the

researcher will be required to prepare a research design! i#e#! he will hae to

state the conceptual structure within which research would be conducted#

he preparation of such a design facilitates research to be as efficient as

possible yielding maimal information# But how all their can be achieed

depends mainly on the research purpose# &esearch purpose may be grouped

into 3 categories8

P .ploration

P $escription

P $iagnosis

P .perimentation

.ploratory research studies8 are those whose main purpose is that of

formulating the problems for more precise inestigations or of deeloping

the working hypothesis from an operational point of iew#

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45/53

$escriptie research studies8 are those studies which are concerned with

describing the characteristics of a particular indiidual! or of a group#

$iagnostic research studies8 determines the frequencies with which

something occurs#

.perimental research studies8 are those where the researcher tests the

hypothesis of casual relationship between the ariables#

&esearch design of this particular research study of dematerialisation

of shares is primarily based on descriptie and diagnostic research design# As

descriptie and diagnostic research design describe the characteristics and

determines the frequencies with which something occurs respectiely!

similarly this research determines the characteristics of the indiiduals who

deal in shares and also determine the frequency of dealing on the basis of

their characteristics#

SAMPLE DESI)N

All the items under consideration in any field of enquiry constitute a

RUnierseF or R"opulationF# A complete enumeration of all the items in the

population is known as a census enquiry# his type of enquiry inoles a

great deal of time! money and energy# ?ence quite often a few items so

selected constitute what is technically called a sample#

here search are must decide the way of selecting a sample of what is

popularly known as sample design# A sample design is a definite plan

determined before any data are actually collected for obtaining a sample

from a gien population# %amples can be either probability samples# >ith the

probability samples each element has a known probability of being included

in the sample but non8probability sample are those based on samples do not

allow the researcher to determine this probability#

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46/53

"robability samples are those based on simple and random sampling!

systematic sampling! etc whereas non8probability samples are those based on

communion sampling! judgement sampling! etc#

Data o+t%on t+hn%3u+-

he required data is collected both from primiary as well as secondary

sources#

"rimary sourcesG he primary data was collected through structured unbiased

questionnaire and personal interiews of inestors# *or this purpose

questionnaire included were both open8ended and closed8ended and

multiple8choice questions#

%econdary sourcesG %econdary data is the data! which is collected and

complied for different purposes! which are used in research for this study#

he secondary data includes material collected fromG8

'A+AS:/.% @ BU.:/.%8 Broucher of Unicon :nestment %olutions

:/.&/.8 www#sebi#go#in

www#nscindia#com

www#uniconindia#in

%iDe of %ample8 he oerall sample inoled in the study consisted of 51

indiiduals#


47/53

of indiiduals# :t was fied before hand and eery effort was made to coer

the gien no# of indiiduals with aailable time for the collection of data for

his project# he data was collected with the help of the questionnaire herself

by the researcher#

M+thod u#+d ,o" anay#%# o, #tudy-

he methodology used for this purpose is surey @ questionnaire method# :t

is a time consuming and epensie method and requires more administratie

planning and superision# :t is also subjectie to interiewer bias or

distortion#

Analysis of $ata8

After the data hae been collected! the researcher turns to the task of

analysing them# he analysis of data requires a number of closely related

operation such as establishment of categories! the application of these

categories to raw data through coding! tabulation and then drawing statistical

inferences# he wisely data shpuld necessarily be condensed into a few

manageable groups and tables for further analysis# hus! researcher should

classify the raw data into some purposeful and useable categories# :n the

process of analysis! relationship or differences supporting or conflicting with

47


48/53

original or new hypothesis should be subjected to tests of significance to

determine with what alidity data can be set to indicate any conclusion#

:/.&"&.A:=/8 the interpretation is done on the basis of the analysed

data and also some recommendations are gien to fill the loopholes of the

actual scenario#

DATA ANAL2SIS AND INTERPRETATION-

&esearch is conducted for finding the solution of the problem# %o to find the

solution of the problem# $ata analysis and interpretation is must# here are

some questions related to this search to interpret the result#

he sample siDe in this study consisted of 51 indiiduals @ data analysed

from the response of these 51 indiiduals

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49/53

4) Are you aware of the stock marketT

A) he basic purpose of the question is to know about how many people are

aware of the stock market and its actiities

7) Are you aware of the $emat Account T

he basic purpose of this question is to know about awareness of

demat account among respondents#

Responses No. of Responses % of Responses Yes 40 80

No 10 20

Total 50 100

49


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Column1

Yes

No

L%$%tat%on# o, th+ R+#+a"h Study-

8 $ue to the lack of time! it was not possible for the researcher to

approach all the people#

8 he respondents were asked to indicate their true responses to the

questions being asked! but rather than giing responses they might

hae been in a form of epert commentswhich might hae been based

the result of study#

8 he results of the study may not be uniersally applicable due to

regional constraints#

8 'oney was also considered as a major constraint during the research

work#

8 "ersonal biasness may be included in the research work#

50


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Su;;+#t%on# and R+o$$+ndat%on#

As many of the people who dealt in share market are aware of

U/:C=/F% name but not of its serices# %o company should adertise its

serices ! so that people can be made aware of all the serices proided by

the company#

P'ost if the people are not finding any spare time to conert their shares

electronically# %o company should approach to such people at their doorstep

to open their demat account#

PAs far as people preference regarding opening of demat ac is concerned

then they mainly prefer two factors i#e# serice and trust#%o it becomes

necessary for the company to take care of these two factors#

1I1LIO)RAP42

8 Unicon forms for opening $epository and rading account#

8 %tudy material of capital market and deriaties market of /C*'#

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8 Sikmund! >illiam +L ,Business &esearch 'ethodology- %eenth

edition! hompson %outh >estern "ublication#

8 >ebsites isited

www#sebi#go#in

www#nseindia#com

www#bseindia#com

=UESTIONNAIRE

: am a student of B#B#A# from Amity Uniersity! ucknow! Uttar "radesh#

;ou are required to fill this questionnaire to enable me to undertake the study

on the said project#

/A'.G

C=/AC /=#G=CCU"A:=/G

A$$&.%%G

4# Are you aware of the stock marketT

(a) ;es (b) /o

7# $o you deal in shareT

(a) ;es (b) /o

52

http://www.sebi.gov.in/http://www.nseindia.com/http://www.bseindia.com/http://www.sebi.gov.in/http://www.nseindia.com/http://www.bseindia.com/


53/53

6# Are you aware of $ematT

(a) ;es (b) /o

3# Are you aware of &ematT

(a) ;es (b) /o

5# ?ow long hae you been transacting in the %tock .changeT

(a) ess than 4 year (c) 4 yr

(b)7 yr (d) 'ore than 6 yrs

2# $ou you trade occasionally or frequentlyT

(a) *requently (b) =ccasionally

0# :n which securities do you deal frequentlyT(a) .quity (d) Bonds

(b) $ebentures (e) *uture and =ptions

(c) All

Q# >hich type of script do you haeT

(a) "hysical (b) $ematerialised

9# >hy hae you not dematerialised your scriptT

(a) ack of Awareness (c) ime constraint(b) iability of changes

41# $o you like to conert your shares electronicallyT

(a) ;es (b) /o

44# =n what basis hae you taken your decision of opening of your

$emat ACT

(a) %erice (c) Conenience

(b) Changes

47# Are you satisfied with your $emat serice proiderT

(a) ;es (b) /o

46# >hat type of problems do you centrally face when you trade in

securitiesT

Documents

DEMAT ACCOUNT DETAILS OF UNICON INVESTMENT SOLUTION.docx