A REPORT

ON
DEMAT ACCOUNT
BY
RAGINI TIWARI
MBA IV SEMESTER

Submitted To: Mr. Chitan Bhavsar

Name of Industry Mentor : Mr. Charan Jeet Singh Shekhavat
Designation, Company Name :
Place:
I
II
 Acknowledgement

It was a great opportunity for me to work with Angel Broking Ltd., pioneers in the field of
Finance Industry. I am extremely grateful to all those who have shared their expertise and
knowledge with me and without whom the completion of this project would have been
virtually impossible.
Firstly, I would like to thank our Company Guide Mr.charanjeet Singh shekhawat
who has been a constant source of inspiration for me during the completion of this project.
He gave me invaluable inputs during my endeavor to complete this project.
I am also extremely grateful to Mr.charanjeet Singh shekhawat Training Manager, to have
given me this opportunity to work with him and gain valuable insights.

I am indebted to all staff of Angel Broking Ltd for their valuable support and
cooperation during the entire tenure of this project. Not to forget, all those who have kept my
spirits surging and helped delivering my best.
I thank my faculty guide Mr./Ms. . who helped me out at every critical situation that I
faced in my project and gave me his valuable advice to solve problems.
I want to give my special thanks to all members of ANGLE BROKING for providing me
opportunity to work on this project with this great organization.

At last I would like to thank all the respondents met in the preparation, who gave their
valuable time to provide us required information and their honest support to complete our
project in time.

RAGINI TIWARI
ROLL NO-13097

III
 ABSTRACT
Demat refers to a Dematerialized account. Just as you have to open an account with a bank if
you want to save your money, make cheque payments etc, you need to open a Demat account
if you want to buy or sell stocks. So it is just like a bank account where actual money is
replaced by shares.
The term "market" can have many different meanings. One usage of the term denotes
the primary market and the secondary market. These two markets distinguish between the
market where securities are created and the market where they are traded among investors.
Their function is the key in understanding how securities are traded. The primary market is
where securities are created. It's in this market that firms sell (float) new stocks and bonds to
the public for the first time. Secondary market is where most trading occurs, the secondary
market is the one in which securities are traded after having been initially offered in the
primary market. It is basically a market in which an investor purchases an asset from another
investor, rather than an issuing corporation. This includes the NYSE, NASDAQ and all
major exchanges around the world. The defining characteristic of the secondary market is
that investors trade among themselves. For example, if you go to buy Microsoft stock, you
are dealing only with another investor who owns shares in Microsoft. Microsoft (the
company) is in no way involved with the transaction. However there was an improvement in
the mechanism of trading whereby it was seen that there was a shift from the traditional
method of physical trading to the updated version of online trading.
The trading on stock exchanges in India used to take place through open outcry
without use of information technology for immediate matching or recording of trades. This
was time consuming and inefficient. This imposed limits on trading volumes and efficiency.
In order to provide efficiency, liquidity and transparency, NSE introduced a nation-wide on-
line fully automated screen based trading system in 1996 where a member can punch into the
computer quantities of securities and the prices at which he likes to transact and the
transaction is executed as soon as it finds a matching sale or buy order from a counter party.
Screen based electronic system electronically matches orders on a strict price/time priority
and hence cuts down on time, cost and risk of error, as well as on fraud resulting in improved
operational efficiency.
A Dematerialized account is opened by the investor while registering with an
investment broker (or sub-broker).
IV
have a Dematerialized account for the purpose of transacting shares. After the introduction of
the depository system by the Depository Act of 1996, the process for sales, purchases and
transfers of shares became significantly easier and most of the risks associated with paper
certificates were mitigated.

V
 Table of Contents
Training Certificatei
Acknowledgements ................................................................................................... ii
Abstract ....................................................................................................................iii
Table of Contents ..................................................................................................... i v
List of Figures ........................................................................................................... v
List of graph
List of table
1 Introduction .......................................................................................................... 1
1.1 Mission .......................................................................................................... 2
1.2 Vision............................................................................................................. 2
1.3 Milestones ..................................................................................................... 3
2 Company profile ................................................................................................... 4
2.1 Product ........... 5
2.2 Employees.6
2.3 Customer promise..7
2.4 Swot analysis 8
3 Review of Literature .......................................................................................... 10
4 Research Methodology ...................................................................................... 13
4.1Types of research .......................................................................................... 13
4.2 objectives of the study .................................................................................. 13
4.3 Sources of data ............................................................................................. 13
4.4 Scope of the study ......................................................................................... 13
4.5 Indian e-broking scenario ............................................................................. 14
4.5.1 Effect on offline business....14
4.5.2 Reasons for online trading...15
4.6 Recent developments.15
4.7 Limitations.....17
4.8 Description of live experience17
5 Stock market .20
5.1 introduction of stock market....20
5.1.1 Indian stock market..20
VI
 5.1.2 BSE.21
5.1.3 NSE.22
5.2 Stock broking sector in India ....23
5.3 broking house in India ......26
6 Angle demat account.....32
6.1 overview of demat account ..32
6..1.1 Why demat? ..32
6.2 Steps involved in opening demat account 33
6.2.1 Rights..34
6.2.2 Procedure34
6.2.3 Required documents 35
6.3 Angle demat account services..35
6.3.1 Benefits of having angle account ....36
6.3.2 Benefits of demat account .......37
7. Buying and selling of dematerializations........40
7.1 Introduction ....40
7.2 Buying dematerialized....41
7.3 selling dematerialized..........41
8. Data analysis .....43
8.1 method of data collection .........43
8.2 Tools of analysis .......43
8.2.1 Research design ..43
8.2.2 Data analysis and interpretation..44
8.2.3 Observation .52
9. Conclusion54
9.1 Summary.54
9.2 Suggestion..55
10. References..56

VII
 FIGURE INDEX

Figure Figure Name Page

no. number
1. Our organizational structure 5
2. Angle broking services 8
3. Flow chart of working staff with back office 18
4. Steps involve in services to customer 19
5. Satisfaction level of client in angle broking 33
6. Percentage of financial instrument 44
7. Result of awareness of online trading 45
8. Result of awareness of angle broking 46
9. Awareness of angle broking facilities 47
10. Represent a pie chart 52

Graph index

Graph Graph name

No.
1. Account opening charges 28
2. Percentages of easily available 48
3. Percentages of offers services 49
4. Percentages of brokerage rate 50
5. Percentages of products and services 51
 VIII

Table index

Figure Figure Name Page number

no.
1. Showing usage of online trading system 16
2. Showing raking of major benefit 16
3. Showing products that are traded 16
4. Data analysis of financial instrument 44
5. Data analysis of online trading 45
6. Data analysis of awareness of angle broking 46
7. Data analysis of angle broking facilities 47
8. Data analysis of easily available 49
9. Data analysis of offers 50
10. Data analysis of brokerage rate 51

I
CHAPTER 1
1.Introduction
Angel Broking's tryst with excellence in customer relations began in 1987. Today,
Angel has emerged as one of the most respected Stock-Broking and Wealth Management
Companies in India.
The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock
Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX &
MCX. Angel is also registered as a Depository Participant with CDSL. FSWA is into
FINANCIAL PLANNING which involves selling of financial products like D-mat account,
corporate FDs, mutual funds and insurance.
Angel Broking ltd Transacting and investing simplified.Get ready to change the
way you transact and invest in financial products and services.Whether you wish to transact
in equity, equity & commodity derivatives, prefer to invest in mutual funds, life & general
insurance products or avail money transfer and money changing services, you can do it all
through reliance money.Simply open a Angel demat account and enjoy the convenience of
handling all your key financial transactions through this one window.
In my project I explain in brief about the company, about financial planning, about
Demat Account, and almost all the things that I have learned so that others can also
read and learn from my experience.
Angel Group Companies

Member on the BSE and Depository Participant

Angel Broking Ltd.
with CDSL

Angel Capital & Debt Market Membership on the NSE Cash and Futures &
Ltd. Options Segment

Angel Commodities Broking

Member on the NCDEX & MCX
Ltd.

Angel Securities Ltd. Member on the BSE

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 Incorporated :1987

BSE Membership :1997

NSE membership :1998

Member of NCDEX and MCX

Depository Participants with CDSL

Angels presence-

Nation- wide network of 21 regional hubs

Presence 124 cities

6800 + sub brokers & business associates

5.9 lakh +clients

1.1 Mission:
To create long term value by empowering individual investors through superior financial
services supported by culture based on highest level of teamwork, efficiency and integrity.

1.2 VISION:
To provide best value for money to investors through innovative products.
Trading/Investments Strategies
State of the art technology and personalized service.

1.3 Milestones
2009 - 'Broking House with Largest Distribution Network' Award and 'Best Retail Broking
House' Award at BSE IPF-D&B Equity Broking Awards.

2012 - BSE IPF-D&B Equity Broking Award for Best Retail Broking House.
2012-13 - Among BSE Top 10 Performers in Equity Segment (Retail Trading) FY
2012-13.
2013 - BSE-IPF D&B Equity Broking Award for Broking House with Largest
Distribution Network
2013 - BSE-IPF D&B Equity Broking Award for 'Best Retail Equity Broking House
2013-14 - Awarded Top Three Clients Traded Members in Equity by the BSE

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 2014 - BSE-IPF D&B Equity Broking Award for Broking House with Largest
Distribution Network.

Angel Broking House

Board of Director

Mr. Dinesh Thakkar Founder Chairman & Managing Director

The Angel Group of Companies was brought to life by Mr. Dinesh Thakkar. He
ventured into stock trading with an intention to raise capital for his own independent
enterprise. However, he recognised the opportunity offered by the stock market to serve
individual investors. Thus Indias first retail-focused stock-broking house was established in
1987. Under his leadership, Angel became the first broking house to embrace new
technology for faster, more effective and affordable services to retail investors.

Mr. Lalit Thakkar Director Research

Mr. Lalit Thakkar is the motivating force behind Angels highly acclaimed
Research team. Hes been a part of the senior management team since the
Angel Groups inception. His technical and fundamental outlook has
provided impetus to Angels market research team.

Mr. Amit Majumdar Chief Strategy Officer

A chartered Accountant by qualification, Mr. Amit Majumdar is a key member

of Angels strategic decision-making process. He has been with the group since
August 2004. He has handled several functions of the group like finance and
operations, to name a few. He has rich experience in finance, investment
banking, treasury, consultancy and advisory services.

3|Page
CHAPTER 2
2. Company Profile
Angel broking ltd. already has a presence in India through company Law, incorporated on
December, 1997. It offers world-class financial planning and a wide range of wealth
management products to mass affluent and affluent customer segments. Angel Broking
limited provides a complete range of financial products and services that include equity
broking (internet based online trading as well as offline trading), financial planning,
insurance, investment products, equity research, demat account and more.
Angel Broking Limited is one of the leading and professionally managed stock
broking firm involved in quality services and research. Angel Broking Limited is a corporate
member of The Stock Exchange, Mumbai. The membership of the company with The Stock
Exchange Mumbai was originally in the name of Mukesh R. Gandhi, which was eventually
turned into a corporate membership in the name of Angel Broking Limited.
Angel Broking Limited is managed by Mr. Dinesh Thakkar and he is well supported
by Mr. Mukesh Gandhi, a fifteen years veteran in the market. The group is well supported by
a professional and qualified research team and efficient operations and back office team,
which comprises of highly dedicated and qualified individuals. Angel has an in-house, state
of art research department.
Angel believes in reaching out to the customer at the farthest end rather than by reaching out
to them. The company in its endeavour to give its client the best has opened up several
branches all over Mumbai, which are efficiently integrated with the Head Office.
Angel Broking Limited is primarily into retail stock broking, with a customer base of
retail investors, which has been increasing at a compounded growth rate of 100% every year.
The company has huge network sub-brokers in Mumbai and other places outside Mumbai,
registered with SEBI, who act as Chanel partners for the company. The company presently
has total staff strength of around 150 employees who are spread accordingly across the head
office and all the branches.
Angel has empowered its physical presence throughout India through various
strategies which it has been adopting efficiently and effectively over a period of time, like
opening up of branches at various places, tie-ups with various agencies and sales agents, buy-
outs of smaller regional outfits and appointment of subbrokers and franchisees. Moreover

4|Page
Angel has been tapping and including high net worth and self-employed individuals it its vast
array of clients.
Angel has always strived in the direction of delivering ultimate client satisfaction and
developing stronger bonds with its customers and chose partners. Angel has a vision to
introduce new and innovative products and services regularly. Moreover Angel has been one
among the pioneers to introduce the latest technological innovations and integrate it
efficiently within its business.

OUR ORGANIZATIONAL STRUCTURE

CSO (Central OUR

Support ORGANIZATIONAL
Office) STRUCTURE

Regional Office Regional Office Regional Office

Branches & Branches & Branches &

Franchise Franchise Franchise
Branches Branches Branches

Business
Angel Clients
Associates

Angel Clients

Fig.1 OUR ORGANIZATIONAL STRUCTURE

2.1 Products
Angel Broking offers products such as Angel Eye,Angel SpeedPro, Angel Trade and Angel
Swift for online trading. Angel Eye is a browser trading application; SpeedPro is a trading
platform application; Angel Trade offers an online trading platform for share investors, while
Swift consists of a trading app for small devices.

5|Page
2.1.1 Products of Angel Broking

Online Trading

Commodities

DP Services

PMS (Portfolio Management Services)

Insurance

IPO Advisory

Mutual Fund

Personal loans

Quality Assurance

2.2 Employees

Shrinking profit margins are increasingly pushing broking firms to press the downsize
button. In yet another instance of the growing pressure to cut costs, domestic brokerage
Angel Broking has laid off about 2,000 employees in the past six months.
In the last six months, Angels employee count has come down from about 6,200 to
4,200. Many sales and relationship managers have been handed out pink slips, said a person
familiar with the development. Angels current employee count is similar to that of leading
retail brokerage Sharekhan, which has about 4,000 employees.
A mid-level Angel employee admitted that the firm had been reducing its manpower
for a while, but denied that the firm had resorted to mass firing. The layoffs are linked to
performance; those who have not delivered have been asked to go. We are seeing some
salary cuts as well. But its not like entire units or divisions are being done away with, he said,
requesting anonymity as he is not authorised to speak on the issue.
According to him, Angel conducts six-monthly appraisals and the layoffs began soon
after the December appraisals. The current situation, he believes, is symptomatic of the kind
of irrationality displayed by broking firms during bull runs. There is a mad scramble for
talent during a bull run and new hires are paid exorbitant sums. When things take a turn for

6|Page
the worse, there is no way to justify these salaries and broking firms are left with no choice
but to let go of people, he said.
In an emailed response, Amit Majumdar, executive director and chief strategy officer of
Angel Broking, denied that 2,000 people had been laid off: The number is not factually
correct. We have seen some natural attrition taking place in the sales division, but that is
generally the case in this business. Financial services industry has high attrition rates
predominantly in sales but it is not to the extent mentioned.
Majumdar added that the firm continues to remain a net hirer even today. Our
business model is flexible enough to run at an optimum cost and we continue to remain
profitable in current market conditions. To be sure, an annual attrition of 25% is common in
broking firms. Several people are laid off every year and several are hired. Its business as
usual, said the retail head of a leading brokerage firm.
However, according to the first person quoted above, Angel Broking may add just
about 300-400 people in the coming quarter, much less than the number laid off. Yes, if
Angel has laid off these many people and has not hired back an equal number, then its quite
something, admitted the retail broking head. Broking firms, especially those focused on retail
clients, are facing a tough time as delivery trades have plummeted and cash volumes on
exchanges have touched historic lows. In 2008, its the clients who were crying even as
brokers minted money as volumes remained more or less intact; now its the brokers who are
crying as the volumes have dipped significantly, said the Angel employee. Angel Broking is
predominantly a retail brokerage with over 7 lakh and a branch network of 175 branches
including 20 regional hubs and 8,200-plus sub-brokers.

2.3 Customer Promise

They are passionate about their customers' success and promise to deliver exceptional service
with every meeting, interaction and dealing. They strive to offer simple, straightforward,
friendly and trustworthy service. They are a financial company with a different attitude

7|Page
 Fig.2 angle broking servi ces

2.4 SWOT ANALYSIS-

Strength:-
Co-operative and Experienced Branch Managers
Good Database
Reliance Brand
Low pricing
Weakness:-
Inexperienced St aff
Low awareness due to lack of advertisement.
Lack of loyal cli entage
Devel oping product.

Opportunity:-
Untapped Market
Increased spending power
Changing Mindset of Customers
Unpredictable Sensex

8|Page
Threat:-
Reach
Stiff competition from existing players in the market
Better products

WHAT DOES ANGEL BROKING LTD. OFFERS

1. Personalized Service

Company believes in providing personalized service and individual attention to each

client to ensure that we understand their goals and help them achieve it.

2. Professional Advice

Company offers expert advice on equity and debt portfolios with an objective to
provide consistent long-term return while taking calculated market risks. Companies
approach helps clients build a proper mix of products, and not concentrate on just one
individual product. Hence, serving long-term objectives in the best way.

3. Long-term Relationship

Company believes that long-term vision is the only means to steady wealth creation.
However to achieve this one also needs to take advantage of short-term market
opportunities while not losing sight of long-term objectives. Hence it partners all its
clients in realizing their long-term vision.

4. Access to Research Reports

Company provides the clients with access to the expert opinion of economists and
analysts.

5. Transparency and Confidentiality

Companies clients receive regular portfolio statements from relationship managers

via email.

9|Page
CHAPTER 3
3. Literature Review
Dr. Ramesh Onkareppa Olekar, (2013) in his work on Online brokerage has grown
substantially since the introduction of Internet and now account for 40%-50% of retail trade.
This change has come in because individual investors want to increase control over their
finances and do not want someone else to manage the money. Online trading has become
very popular in last couple of years because of convenience of ease and use. Numerous
companies have gone on-line to meet their customers demands enabling them to trade when
they want and how they want to. Online trade, which now accounts for 50%-60% of all retail
trade, is forecasted to increase to 70% by 2008.
At present online brokers hold $574billion in assets but this figure is expected to
grow to $4 trillion by end of 2007. The market has become saturated and very competitive.
As the number of players increase, it becomes very difficult to differentiate. The volatility in
US equity, market in 1999 and September 11 World Trade
Center attack has hurt the online brokerage trading volumes. Established E-brokerage
firms have created bearer to entry that makes it difficult for new player to enter into the
market. Dematerialization the process by which physical certificates of an investor are
converted to an equivalent number of securities in electronic form and credited in the
investor's account with his (DP) Depository Party. Only those certificates that are already
registered in your name and are in the list of securities are admitted for Dematerialization at
NSDL/ CDSL. Demat shares are supposed to obviate all the problems of physical trading.
The biggest attraction of trading in Demat shares is that the shares an investor buys comes
with a clean title and immediately after the settlement on the relevant stock exchange.
Buying shares in the Demat form always guarantees the investor a good title as soon as the
settlement is over and hence it is a preferred mode of trading today and will be so in the
future also.
Notwithstanding many problems, Indian stock market has emerged as a significant
financial intermediary, assisting efficient resource allocation, providing strong support to
Indian economy and help investors to realize the benefits of stock market investing.

The growing importance of the Indian stock market place may be noted in terms of
increased mobilization of funds and growing number of investors account. Indian stock
market industry has remained centered around a limited product range. This has happened

10 | P a g e
due to the tendency to avoid risk, inability to understand future market development and
changes in investor preference. The absence of product diversification and a confused market
situation has been made more by the absence of an innovative marketing network. Online is
considered as one of the innovative network.

The product range offered by stock broking firms needs to be redesigned to cater the
changes in the short term, medium term and long term savings and investment markets.
Management is considered to be a key for the operational efficiency of any business venture.
This factor becomes even more crucial for service ventures such as stock broking business
venture. Stock market industry must undertake a well-designed and comprehensive program
of investor education especially aimed at investors in rural and semi-urban areas. However
this has been mostly neglected in India. In India most of the broking business comes from the
small investors and efforts are concentrated on serving them efficiently, and this would help
them in being a good intermediary for providing various financial services due to its reach
to the last mile. SEBI has been playing a significant role in the regulation of stock market.
SEBIs steps like dematerializing, and trading through net etc. has increased the transparency
of the trading than before. In the global market place no industry can afford to be struck by
inertia. But it is management which is crucial to the success of any business operation.

Dr. Jasbir Singh (2012) in his work on Demat refers to a Dematerialized account. Just as
you have to open an account with a bank if you want to save your money, make cheque
payments etc, you need to open a Demat account if you want to buy or sell stocks. So it is
just like a bank account where actual money is replaced by shares.

You have to approach the DPs (remember, they are like bank branches), to open your Demat
account. Lets say your portfolio of shares looks like this: 40 of Infosys, 25 of Wipro, 45 of
HLL and 100 of ACC. All these will show in your Demat account. So you dont have to
possess any physical certificates showing that you own these shares. They are all held
electronically in your account. As you buy and sell the shares, they are adjusted in your
account. Just like a bank passbook or statement, the DP will provide you with periodic
statements of holdings and transactions. Dematerialisation of your holdings is not mandatory.
You can hold your securities either in Demat form or in physical form. You can also keep
part of your holdings (in the same scrip) in Demat form & part in physical form. However, a

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select list of securities announced by SEBI can be delivered only in Demat form in the stock
exchanges connected to NSDL.

The trading on stock exchanges in India used to take place through open outcry
without use of information technology for immediate matching or recording of trades. This
was time consuming and inefficient. This imposed limits on trading volumes and efficiency.
In order to provide efficiency, liquidity and transparency, NSE introduced a nation-wide on-
line fully automated screen based trading system in 1996 where a member can punch into the
computer quantities of securities and the prices at which he likes to transact and the
transaction is executed as soon as it finds a matching sale or buy order from a counter party.
Screen based electronic system electronically matches orders on a strict price/time priority
and hence cuts down on time, cost and risk of error, as well as on fraud resulting in improved
operational efficiency. A Dematerialized account is opened by the investor while registering
with an investment broker (or sub-broker). The Dematerialized account number is quoted for
all transactions to enable electronic settlements of trades to take place. Every shareholder will
have a Dematerialized account for the purpose of transacting shares. After the introduction of
the depository system by the Depository Act of 1996, the process for sales, purchases and
transfers of shares became significantly easier and most of the risks associated with paper
certificates were mitigated.

12 | P a g e
CHAPTER 4
4. METHODOLOGY
Throughout the study an attempt has been made to arrive at the conclusions with help of
economic reasoning, experience derived from secondary markets from the lessons of the
economic history. The study is explorative in nature as it aims in identifying the growth &
benefits of DEMAT and on-line trading. The assets, which the corporation has inherited,
have deep roots and justify full discussion in its historical perspective.
Research Methodology refers to search of knowledge .one can also define research
methodology as a scientific and systematic search for required information on a specific
topic.

4.1TYPES OF RESEARCH

ANALYTICAL RESEARCH:-
It has to used facts or information already available and analyze these to make a critical
evaluation of material.

SAMPLE SIZE:
Considering the constraints it was decided to conduct the study based on sample size of 100

people in specific age groups.

4.2 OBJECTIVES OF THE STUDY

To study the awareness level of various concepts of Demat & online trading.
To identify the benefits of Demat & online trading.
To study percentage of savings of online trading.
To identify the market leaders in this segment

4.3 SOURCES OF DATA

Secondary data: The secondary data collected from different websites, journals,
company reports and the available literature on the subject.

4.4 SCOPE OF THE STUDY

The study encompasses only the major Secondary market that have a substantial share in the
share market. The scope of the study is limited to the performance of the industry for the
limited period.

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Limitations of the study
The information provided by the managers may not be the actual figures; it may be a
virtual data in the sense conclusions based on the real data vary from the virtual data.
The study is conducted in the short period of time, and hence the results vary from time to
time.
The study covers only a particular geographical region, and hence the conclusions cannot
be considered as a whole outcome of the industry.

4.5 INDIAN E-BROKING SCENARIO

The Indian stock broking business has gone through a sea of changes. From that of a
business dominated by few individual players to institutional members, as did trading open
outcry and hidden deeds to screen best and transparency. India enters the cyber-trading era to
equal the current market trends taking into consideration the need to facilitate inflow of funds
in the capital market. The trading system will enable all categories of investors, resident and
non-resident Indian, to trade online. Online brokerage in India is still in its early days.
Though the trade through online broking is very miniscule compare to total trading, the signs
are that it will grow to 30%-35% in next few years.
4.5.1 EFFECT ON OFF-LINE BUSINESS
With the emergence of e-broking, which offers many benefits like, level playing filled to all
investors, comfort of the house, simplicity, low brokerage and value added services it could
be possible for some of the offline trade to shift to online trade.
The proportion of online broking business compare to off line broking is miniscule
about less than 1%. The offline player would not be affected unless the figure reaches a
minimum of 8-10%. Online trade has not started to eat the volumes of, off line business till
now. But at the same time it has created new set of clients for e.g., NRIs who were not very
active in the market due to lack of transparency and information, have moved to use this
facility.
Housewives are another new category. Net savvy students and retired persons are the
next expected category.
Depository services-beginning of the era of stocks at click Today it is a practical reality that
one can arrange delivery of securities (shares) sold anytime, anywhere to anyone by a click
of the mouse and it is possible to trade in securities and settlement of the accounts from the
convenience of a sitting room or via a laptop. The depository is responsible to deliver and

14 | P a g e
receive securities trade at the stock exchange, which are the business partners of the
depository. It does not deal with financial aspect of the settlement of the trade.
Dematerialization of securities (shares) was the commencement of the era of stocks. The
beginning was made in 1996, with legislation of the depository act 1996 and SEBI
regulations 1996.
4.5.2 REASONS FOR ONLINE TRADING IN INDIA
Each investor has one or other reasons to go for online trading instead of offline trading.
They are as follows:
They are independent. They fell they have control over their account, can make their
own decisions and dont have to give reasons for their actions.
They have a reason to participate in the stock market and learn about it.
They find it interesting, cheap, easy, and fast and convenience.
A lot of information is online so they can keep up-to-date with what is happening in
the trading world.
They are sure and overconfident.

Reasons for the emergence of online trading in India

The reasons for providing online trading facility to investors by the Indian companies are
various. They are as follows:
online trading has a very good future in India as it is not exploited properly so far.
Consistent increase in the number of users of interest.
Consistent increase in the number of personal computer users.
Part of diversification.
Less investment in technology and other areas compared to the returns.
More awareness in investors about the stock

4.6 RECENT DEVELOPMENTS

The bumpy Bull Run in the stock markets has triggered a slowdown in the opening of new
account by the depository

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RESULTS AND DISCUSSION

This table shows By observing the above table we can understand that 90% usage of online trading is
made by the three continents that is W.Europe 44%, N.America 25%, Asia Pacific 21% and rest 10%
is made by the rest of the word.

This table indicate By observing the above table we can understand that by using the online
trading the bank can get so many benefits like Improved Information Transparency, Time
Saving, Cost Saving, Better understand that by using the online trading the bank can get so
many benefits like Improved Information Transparency, Time Saving, Cost Saving, Better
Security/Audit, Straight through Processing and Quality of Research /Analytics. These
benefits are changes when observation made on single bank and multi-bank.

This table shows by observing the above table we can understand that what are the products
are transacted through on-line trading and at what % the transaction will be made. Out of
100% 65% of transaction is made for shares and remaining 35% of transaction will be made
as follows. Bond 13%, commercial paper 12% and remains 10% for swaps and options.

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 Even though online trading provides privacy to the clients, trends available from the
trading room will not help most of the online traders.
Investors dealing online must possess good knowledge for analyzing the information
passed on by the companies through net.

4.7 LIMITATIONS
1. Cold Calling
Voice and accent plays a major role.
The right time to call a customer cannot be decided, as the customer may in a different
mood at the time of calling.
Time consuming
Less success rate
2. Corporate
Time consuming
Contacts with higher authorities play a major role

4.8 Description of live experience

I was supposed to use the database provided by the company to make cold calls or by directly
meeting people to get new leads.
While making cold calls, we need to have
Good Communication Skills (Voice quality is clear and articulate)
Persistent and able to bounce back from rejection
Good organizational skills.
Ability to project a telephone personality (Enthusiasm, friendliness)
Flexibility: can adapt to different types of clients and new situations .
Using a good database is very essential.
Eighty percent of our business comes from 20 percent of our customers" is a frequent
statement at any sales convention. There's hardly a sales executive who is not aware of the
80/20 rule.

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 Fig.3 flow chart of working staff with back office

While talking to customers, I analyze their needs. Whether they want to go for investment
purpose or insurance or both. Suggest them the plan that best suits them. If they agree to it
then either we send across the agents to close the deal or close it themselves.
Problems faced while selling products:
Customer dissatisfied with the services.
People fear that Angel Broking Being a Private company and a new entrant may be
able to sustain or not.
Past experience, word of mouth.
Misguidance by agents.
People do not want insurance products.
Lack of knowledge and less awareness about demat account.
People risk appetite is very low, so they are afraid of mutual fund as well.

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 Fig.4 steps involve in service to customer

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CHAPTER 5
5. Stock market
5.1 Introduction of Stock Market
In most industrialized countries, a substantial part of financial wealth is not managed directly
by savers, but through a financial intermediary, which implies the existence of an agency
contract between the investor (the principal) and a broker or portfolio manager (the agent).
Therefore, delegated brokerage management is arguably one of the most important agency
relationships intervening in the economy, with a possible impact on financial market and
economic developments at a macro level.

As the per-capita-income of the city is on the higher side, so it is quite obvious that they want
to invest their money in profitable ventures. On the other hand, a number of brokerage
houses make sure the hassle free investment in stocks. Asset management firms allow
investors to estimate both the expected risks and returns, as measured statistically. There are
mainly two types of Portfolio management strategies.

Passive Portfolio Strategy

Active Portfolio Strategy
1. Passive Portfolio Strategy: A strategy that involves minimal expectation input, and
instead relies on diversification to match the performance of some market index. A
passive strategy assumes that the marketplace will reflect all available information in
the price paid for securities
2. Active Portfolio Strategy: A strategy that uses available information and
forecasting techniques to seek a better performance than a portfolio that is simply
diversified broadly.

5.1.1 Indian Stock Market

Share or stock is a document issued by a company, which entitles its holder to be one of the
owners of the company. A share is issued by a company or can be purchased from the stock
market.

Share market where dealing of securities is done is known as share market. There are two
ways in which investors gets share from market:

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Primary market: markets in which new securities are issued are known as primary market.
This is part of the financial market where enterprises issue their new shares and bonds. It is
characterized by being the only moment when the enterprise received money in exchange for
selling its financial assets.

Secondary Market: Market in which existing securities are dealt is known as secondary
market. The market where securities are traded after, they are initially offered in the primary
market. Most trading is done in the secondary market.

The Stock Market is an invisible market that trades in stocks of various companies belonging
to both the public and private sectors. The Indian Stock Market is often referred to as the
Share Market since it deals primarily with shares of various companies.

A Stock Exchange is a place where the stocks are listed and traded. Such exchanges may be a
corporation or mutual organization which specializes in the business of introducing the
sellers with the buyers of stocks and securities.

The Indian Stock Market in India comprises of two stock exchanges:

Bombay Stock Exchange (BSE)

National Stock Exchange (NSE)

5.1.2 BSE (Bombay Stock Exchange)

The Bombay Stock Exchange (BSE) was established in 1875.The BSE India Stock Exchange
serves as the most important for companies to raise money. The chief function of the Stock
Market of India is to help raise money as capital for the growth and expansion of various
private and public sector enterprises.

Besides, the Stock Market of India provides able assistance to the individual investors
through daily updates on current position of the stocks of the respective companies that are
enlisted in the Stock Index in which the movement of prices in a section of the market are
captured in price indices.

The popular acronym for Stock Index is Sensitive index or sensex. Moreover, the
liquidity provided by the exchange enables the investors to sell securities owned by them

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easily and quickly. Hence a person, who is subjected to sudden dearth of funds, can
immediately sell his shares for cash in India Stock Market.

The BSE Sensex, also known as BSE 30 is a widely used market index not only in India
but across Asia. In terms of volume of transactions, it is ranked among the top five stock
exchanges in the world.

5.1.3 NSE(National Stock Exchange)

The National Stock Exchange of India Ltd. (NSE), set up in the year 1993, is today the
largest stock exchange in India and a preferred exchange for trading in equity, debt and
derivatives instruments by investors. NSE has set up a sophisticated electronic trading,
clearing and settlement platform and its infrastructure serves as a role model for the securities
industry. The standards set by NSE in terms of market practices; products and technology
have become industry benchmarks and are being replicated by many other market
participants.
NSE provides a screen-based automated trading system with a high degree of
transparency and equal access to investors irrespective of geographical location. The high
level of information dissemination through the on-line system has helped in integrating retail
investors across the nation.
The exchange has a network in more than 350 cities and its trading members are
connected to the central servers of the exchange in Mumbai through a sophisticated
telecommunication network comprising of over 2500 VSATs.
NSE has around 850 trading members and provides trading in equity shares and debt
securities. Besides this, NSE provides trading in various derivative products such as index
futures, index options, stock futures, stock options and interest rate futures.
In addition to these organizations there are other organizations highlighting on the share
trading in the Indian Stock Market are:

Securities and Exchange Board of India (SEBI)

NSDL
CDSL

The Nifty and the Sensex are the indicators which are the parameters denoting the
prices of the stocks of the major companies of the NSE and the BSE respectively.

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5.2 Stock Broking Sector in India
The Indian broking industry is one of the oldest trading industries that has been around even
before the establishment of the BSE in 1875.
Despite passing through a number of changes in the post liberalization period, the
industry has found its way towards sustainable growth. In this section our purpose will be of
gaining a deeper understanding about the role of the Indian stock broking industry in the
countrys economy.
What is meant by a Stock Exchange?
The Securities Contract (Regulation) Act, 1956 [SCRA] defines Stock Exchange as
anybody of individuals, whether incorporated or not, constituted for the purpose of assisting,
regulating or controlling the business of buying, selling or dealing in securities. Stock
exchange could be a regional stock exchange whose area of operation/jurisdiction is specified
at the time of its recognition or national exchanges, which are permitted to have nationwide
trading since inception. NSE was incorporated as a national stock exchange.
What is an Equity/Share?
Total equity capital of a company is divided into equal units of small denominations, each
called a share. The holders of such shares are members of the company and have voting
rights.
What is a Debt Instrument?
Debt instrument represents a contract whereby one party lends money to another on pre-
determined terms with regards to rate and periodicity of interest, repayment of principal
amount by the borrower to the lender.
In the Indian securities markets, the term bond is used for debt instruments issued
by the Central and State governments and public sector organizations and the term
debenture is used for instruments issued by private corporate sector.
What is a Derivative?
Derivative is a product whose value is derived from the value of one or more basic variables,
called underlying. The underlying asset can be equity, index, foreign exchange (forex),
commodity or any other asset. Derivative products initially emerged as hedging devices
against fluctuations in commodity prices and commodity-linked derivatives remained the
sole form of such products for almost three hundred years. The financial derivatives came
into spotlight in post-1970 period due to growing instability in the financial markets.

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What is a Mutual Fund?
A Mutual Fund is a body corporate registered with SEBI (Securities Exchange Board of
India) that pools money from individuals/corporate investors and invests the same in a
variety of different financial instruments or securities such as equity shares, Government
securities, Bonds, debentures etc. Mutual funds can thus be considered as financial
intermediaries in the investment business that collect funds from the public and invest on
behalf of the investors. Mutual funds issue units to the investors.
The appreciation of the portfolio or securities in which the mutual fund has invested
the money leads to an appreciation in the value of the units held by investors. The investment
objectives outlined by a Mutual Fund in its prospectus are binding on the Mutual Fund
scheme. The investment objectives specify the class of securities a Mutual Fund can invest
in. Mutual Funds invest in various asset classes like equity, bonds, debentures, commercial
paper and government securities.
The schemes offered by mutual funds vary from fund to fund. Some are pure equity
schemes; others are a mix of equity and bonds. Investors are also given the option of getting
dividends, which are declared periodically by the mutual fund, or to participate only in the
capital appreciation of the scheme.

What is an Index?
An Index shows how a specified portfolio of share prices is moving in order to give an
indication of market trends. It is a basket of securities and the average price movement of the
basket of securities indicates the index movement, whether upwards or downwards.

What is a Depository?
A depository is like a bank wherein the deposits are securities (viz. shares, debentures, bonds,
government securities, units etc.) in electronic form.

What is Dematerialization?
Dematerialization is the process by which physical certificates of an investor are converted to
an equivalent number of securities in electronic form and credited to the investors account
with his Depository Participant (DP)

24 | P a g e
What is meant by Securities?
The definition of Securities as per the Securities Contracts Regulation Act (SCRA), 1956,
includes instruments such as shares, bonds, scrips, stocks or other marketable securities of
similar nature in or of any incorporate company or body corporate, government securities,
derivatives of securities, units of collective investment scheme, interest and rights in
securities, security receipt or any other instruments so declared by the Central Government.

What is the function of Securities Market?

Securities Markets is a place where buyers and sellers of securities can enter into transactions
to purchase and sell shares, bonds, debentures etc. Further, it performs an important role of
enabling corporate, entrepreneurs to raise resources for their companies and business
ventures through public issues. Transfer of resources from those having idle resources
(investors) to others who have a need for them (corporate) is most efficiently achieved
through the securities market. Stated formally, securities markets provide channels for
reallocation of savings to investments and entrepreneurship. Savings are linked to
investments by a variety of intermediaries, through a range of financial products, called
Securities.
Which are the securities one can invest in?
Shares
Government Securities
Derivative products
Units of Mutual Funds etc.

Why does Securities Market need Regulators?

The absence of conditions of perfect competition in the securities market makes the role of
the Regulator extremely important. The regulator ensures that the market participants behave
in a desired manner so that securities market continues to be a major source of finance for
corporate and government and the interest of investors are protected.

Who regulates the Securities Market?

The responsibility for regulating the securities market is shared by Department of Economic
Affairs (DEA), Department of Company Affairs (DCA), Reserve Bank of India (RBI) and
Securities and Exchange Board of India (SEBI).

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What is SEBI and what is its role?
The Securities and Exchange Board of India (SEBI) is the regulatory authority in India
established under Section 3 of SEBI Act, 1992. SEBI Act, 1992 provides for establishment of
Securities and Exchange Board of India (SEBI) with statutory powers for (a) protecting the
interests of investors in securities (b) promoting the development of the securities market and
(c ) regulating the securities market. Its regulatory jurisdiction extends over corporates in the
issuance of capital and transfer of securities, in addition to all intermediaries and persons
associated with securities market. SEBI has been obligated to perform the aforesaid functions
by such measures as it thinks fit. In particular, it has powers for:
Regulating the business in stock exchanges and any other securities markets

Registering and regulating the working of stock brokers, subbrokers etc.

Promoting and regulating self-regulatory organizations

Prohibiting fraudulent and unfair trade practice.

Calling for information from, undertaking inspection, conducting inquiries and audits
of the stock exchanges, intermediaries, self- regulatory organizations, mutual funds
and other persons associated with the securities market.

5.3 Broking houses in India

India is a country having a big list of Broking Houses. The Equity Broking Industry in India
has several unique features like it is more than a century old, dynamic, forward looking, and
good service providers, well conversant, highly innovative and even adaptable.

The regulations and reforms been laid down in the Equity Market has resulted in
rapid growth and development. Basically, the growth in the equity market is largely due to
the effective intermediaries.

The Broking Houses not only act as an intermediate link for the Equity Market but also for
the Commodity Market, Foreign Currency Exchange Market, and many more. The Broking
Houses has also made an impact on the Foreign Investors to invest in India to certain extent.

26 | P a g e
In the last decade, the Indian brokerage industry has undergone a dramatic transformation.
From being made of close groups, the broking industry today is one of the most transparent
and compliance oriented businesses.

Long settlement cycles and large scale bad deliveries are a thing of the past with the
advent of T+2 settlement cycle and dematerialization. Large and fixed commissions have
been replaced by wafer thin margins, with competition driving down the brokerage fee, in
some cases, to a few basis points.

There have also been major changes in the way business is conducted. Technology has
emerged as the key driver of business and investment advice has become research based. At
the same time, adherence to regulation and compliance has vastly increased. The scope of
services have enhanced from being equity products to a wide range of financial services.
Investor protection has assumed significance.

Some basics of stock and capital market

Investment
The money you earn is partly spent and the rest saved for meeting future expenses. Instead of
keeping the savings idle you may like to use savings in order to get return on it in the future.
This is called Investment.

Why should one invest?

Earn return on your idle resources

Generate a specified sum of money for a specific goal in life

Make a provision for an uncertain future.

27 | P a g e
 Account opening Charges
Value in Rs.

1200
999
1000 900 865
800 750
700

600 560
460
400 350

200

0
Angel Indiabulls Religare ICICI Sharekhan Anand India Hem
Broking Securities Securities Direct Securities Rahti Infoline Securities
Ltd. Securtites
Comapny Name

Graph.1 account opening charges

One of the important reasons why one needs to invest wisely is to meet the cost of Inflation.
Inflation is the rate at which the cost of living increases. The cost of living is simply what it
costs to buy the goods and services you need to live. Inflation causes money to lose value
because it will not buy the same amount of a good or a service in the future as it does now or
did in the past.
What care should one take while investing?
Obtain written documents explaining the investment

Read and understand such documents

Verify the legitimacy of the investment

Find out the costs and benefits associated with the investment

Assess the risk-return profile of the investment

Know the liquidity and safety aspects of the investment

Ascertain if it is appropriate for your specific goals

Compare these details with other investment opportunities available

Examine if it fits in with other investments you are considering

Deal only through an authorised intermediary

28 | P a g e
 Seek all clarifications about the intermediary and the investment

Explore the options available

What is meant by Interest?

When we borrow money, we are expected to pay for using it this is known as Interest.
Interest is an amount charged to the borrower for the privilege of using the lenders money.
Interest is usually calculated as a percentage of the principal balance (the amount of money
borrowed). The percentage rate may be fixed for the life of the loan, or it may be variable,
depending on the terms of the loan.
What factors determine interest rates?
When we talk of interest rates, there are different types of interest rates - rates that banks
offer to their depositors, rates that they lend to their borrowers, the rate at which the
Government borrows in the Bond/Government Securities market, rates offered to investors in
small savings schemes like NSC, PPF, rates at which companies issue fixed deposits etc. The
factors which govern these interest rates are mostly economy related and are commonly
referred to as macroeconomic factors. Some of these factors are:
Demand for money

Level of Government borrowings

Supply of money

Inflation rate

The Reserve Bank of India and the Government policies

What are various options available for investment?

One may invest in:
Physical assets like real estate, gold/jewellery, commodities etc.
Financial assets such as fixed deposits with banks, small saving instruments with post
offices, insurance/provident/pension fund etc. or securities market related instruments like
shares, bonds, debentures etc.

What are various Short-term financial options available for investment?

29 | P a g e
Broadly speaking, savings bank account, money market/liquid funds and fixed deposits with
banks may be considered as short-term financial investment options:
Savings Bank Account is often the first banking product people use, which offers low interest
(4%-5% p.a.), making them only marginally better than fixed deposits.
Money Market or Liquid Funds are a specialized form of mutual funds that invest in
extremely short-term fixed income instruments and thereby provide easy liquidity.Unlike
most mutual funds, money market funds are primarily oriented towards protecting your
capital and then, aim to maximize returns Fixed Deposits with Banks are also referred to as
term deposits and minimum investment period for bank FDs is 30 days. Fixed Deposits with
banks are for investors with low risk appetite, and may be considered for 6-12 months
investment period as normally

What are various Long-term financial options available for investment?

Post Office Savings Schemes, Public Provident Fund, Company Fixed Deposits, Bonds and
Debentures, Mutual Funds etc.
Post Office Savings: Post Office Monthly Income Scheme is a low risk saving instrument,
which can be availed through any post office.
Public Provident Fund: A long term savings instrument with a maturity of 15 years and
interest payable at 8% per annum compounded annually. A PPF account can be opened
through a nationalized bank at anytime during the year and is open all through the year for
depositing money. Tax benefits can be availed for the amount invested and interest accrued is
tax-free. A withdrawal is permissible every year from the seventh financial year of the date
of opening of the account and the amount of withdrawal will be limited to 50% of the
balance at credit at the end of the 4th year immediately preceding the year in which the
amount is withdrawn or at the end of the preceding year whichever is lower the amount of
loan if any.
Company Fixed Deposits: These are short-term (six months) to medium-term (three to five
years) borrowings by companies at a fixed rate of interest which is payable monthly,
quarterly, semi10 annually or annually. They can also be cumulative fixed deposits where the
entire principal along with the interest is paid at the end of the loan period.
Bonds: It is a fixed income (debt) instrument issued for a period of more than one year with
the purpose of raising capital. The central or state government, corporations and similar

30 | P a g e
institutions sell bonds. A bond is generally a promise to repay the principal along with a
fixed rate of interest on a specified date, called the Maturity Date.
Mutual Funds: These are funds operated by an investment company which raises money
from the public and invests in a group of assets (shares, debentures etc.), in accordance with
a stated set of objectives. It is a substitute for those who are unable to invest directly in
equities or debt because of resource, time or knowledge constraints.

31 | P a g e
CHAPTER 6
6. ANGEL DEMAT ACCOUNTS
6.1 Overview of Demat Account
Demat account allows you to buy, sell and transact shares without the endless paperwork and
delays. It is also safe, secure and convenient.
In India, a demat account, the abbreviation for dematerialized account, is a type of
banking account which dematerializes paper-based physical stock shares. The dematerialized
account is used to avoid holding physical shares: the shares are bought and sold through a
stock broker.
This account is popular in India. The Securities and Exchange Board of India (SEBI)
mandates a demat account for share trading above 500 shares. As of April 2006, it became
mandatory that any person holding a demat account should possess a Permanent Account
Number (PAN),and the deadline for submission of PAN details to the depository lapsed on
January 2007.
Is a demat account a must?
Now a day, practically all trades have to be settled in dematerialized form. Although the
market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of
up to 500 shares to be settled in physical form, nobody wants physical shares any more. So a
demat account is a must for trading and investing.

6.1.1 Why demat?

The demat account reduces brokerage charges, makes pledging/hypothecation of shares
easier, enables quick ownership of securities on settlement resulting in increased liquidity,
avoids confusion in the ownership title of securities, and provides easy receipt of public issue
allotments.
It also helps you avoid bad deliveries caused by signature mismatch, postal delays and loss of
certificates in transit. . Further, it eliminates risks associated with forgery, counterfeiting and
loss due to fire, theft or mutilation. Demat account holders can also avoid stamp duty (as
against 0.5 per cent payable on physical shares), avoid filling up of transfer deeds, and obtain
quick receipt of such benefits as stock splits and bonuses.

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 Satisfaction Level of clients In Angel Broking Ltd.

Unsatisfied
17%

Satisfied
83%

Fig.5 satisfaction level of clients in angle broking ltd.

6.2 Steps involved in opening demat account

First an investor has to approach a DP and fill up an account opening form. The account
opening form must be supported by copies of any one of the approved documents to serve as
proof of identity (POI) and proof of address (POA) as specified by SEBI. Further, the
investor has to sign an agreement with DP in a depository prescribed standard format, which
details rights and duties of investor and DP. DP should provide the investor with a copy of
the agreement and schedule of charges for their future reference. The DP will open the
account in the system and give an account number, which is also called BO ID (Beneficiary
Owner Identification number).

The DP may revise the charges by giving 30 days notice in advance. SEBI has rationalized
the cost structure for dematerialization by removing account opening charges, transaction
charges for credit of securities, and custody charges vide circular dated January 28, 2005.

Further, SEBI has vide circular dated November 09, 2005 advised that with effect from
January 09, 2006, no charges shall be levied by a depository on DP and consequently, by a
DP on a Beneficiary Owner (BO) when a BO transfers all the securities lying in his account
to another branch of the same DP or to another DP of the same depository or another

33 | P a g e
depository, provided the BO Account/s at transferee DP and at transferor DP are one and the
same, i.e. identical in all respects. In case the BO Account at transferor DP is a joint account,
the BO Account at transferee DP should also be a joint account in the same sequence of
ownership.

6.2.1 Rights

1. You can open more than one depository account in the same name with single DP/
multiple DPs.
2. No minimum balance is required to be maintained in a depository account.

3. You can give a onetime standing instruction to your DP to receive all the credits coming

to your depository account automatically.

6.2.2Procedure

1. Fill account opening form (available with your DP).

2. Give your DP the duly filled account opening form with introduction documents as may
be required.
3. Sign agreement with DP (agreement will state rights & obligations of both parties). The
agreement will contain the fee structure of your DP. Your DP would give you a copy of
this signed agreement for your record.
4. DP would give you Client Id no. (Account no.) Once your depository account is opened.
This Client Id no. along with your DP Id no. Forms a unique combination. Both these
nos. should be quoted in all your future correspondence with DP/NSDL / Issuing
Company/their registrar & transfer (R&T) agent.
5. Your DP would give you pre-printed instruction slips for depository services viz.,
dematerialization, delivery instruction for trades, etc..Preserve these carefully.
6. Your DP would give you a list of deadlines for giving instructions for various depository
activities viz., transfer for effecting sale, purchaseetc.. If not, check with the DP.

34 | P a g e
6.2.3 Required Documents

The extent of documentation required to open a demat Account may vary according to your
relationship with the institution. If you plan to open a demat account with a bank, a savings
account holder has an edge over the non-account holder. In fact, banks usually offer
additional incentives to customers who open a demat account with them.
Along with the application form, your photographs (with co-applicants) and proof of
identity/residence/date of birth have to be submitted. The DPs also ask for a DP-client
agreement to be executed on non-judicial stamp paper. Here is a broad list (you wont need
all of them though):

PAN card
A canceled check,
Voters ID
Passport
Ration card
Drivers license
Photo credit card
Employee ID card
Bank attestation
IT returns
Electricity/ Landline phone bill

While they only ask for photocopies of the documents, they will need the originals for
verification. You will have to submit a passport size photograph on which you sign across.

6.3 Angel Demat Account Services

Angel Broking Transacting and investing simplified.Get ready to change theway you
transact and invest in financial products and services. Whether you wish to transact in equity,
equity & commodity derivatives, IPOs offshore investments or prefer to invest in mutual
funds, life & general insurance products or avail money transfer and money changing
services, you can do it all through Angel. Simply open a Angel account and enjoy the
convenience of handling all your key financial transactions through this one window.

35 | P a g e
6.3.1 Benefits of having an Angel account

Its cost effective:-

You pay comparatively lower transaction fees. As an Introductory offer, we invite you to pay
a flat fee of just Rs. 750/- and transact through Angel.

Its offers single:-

Through Angels associates, you can transact in equity, equity and commodities derivatives,
offshore investments mutual funds, IPOs life insurance, general insurance, money transfer,
money changing and credit cards, amongst others.

Its convenient:-
You can access Angels services through
The internet
Transaction kiosks
The phone (call & transact)

Our all India network of associates on an assisted trade .

Its Safeyour:-
Account is safeguarded with a unique security number that changes every 32 seconds. This
number works as a dynamics password to keep your account extra safe.
Reliable research, including views of external experts with an enviable track record
Live news updates from Reuters and Dow Jones
CEOs / expert views on the economy and financial markets
Tools that help you plan your investments, tax, retirement, etc. in the personal finance
section
Risk Analyzer for analysis of your risk profile
Asset allocators to build an appropriate investment portfolio
Innovative use of technology for facilitating

36 | P a g e
6.3.2 Benefits of Demat Account

A safe and convenient way to hold securities;

Immediate transfer of securities;
No stamp duty on transfer of securities;
Elimination of risks associated with physical certificates such as bad delivery, fake
securities, delays, thefts etc.;
Reduction in paperwork involved in transfer of securities;
Reduction in transaction cost;
No odd lot problem, even one share can be sold;
Nomination facility;
Change in address recorded with DP gets registered with all companies in which investor
holds securities electronically eliminating the need to correspond witheach of them
separately;
Transmission of securities is done by DP eliminating Correspondence with companies;
Automatic credit into demat account of shares, arising out of
bonus/split/consolidation/merger etc.
Holding investments in equity and debt instruments in a single account.
6.3.3 Benefit for Investors
Demat account has become a necessity for all categories of investors for the
following reasons/ benefits:
SEBI has made it compulsory for trades in almost all scrips to be settled in Demat
mode. Although, trades up to 500 shares can be settled in physical form, physical
settlement is virtually not taking place for
the apprehension of bad delivery on
account of mismatch of signatures, forgery of signatures, fake certificates,
etc.
It is a safe and convenient way to hold securities compared to holding securities in
physical form..
No stamp duty is levied on transfer of securities held in Demat form.
Instantaneous transfer of securities enhances liquidity.
It eliminates delays, thefts, interceptions and subsequent misuse of certificates.

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 Change of name, address, registration of power of attorney, deletion of deceased's
name, etc. - can be affected across companies by one single instruction to the DP.
Each share is a market lot for the purpose of transactions - so no odd lot problem.
Any number of securities can be transferred/delivered with one delivery order.
Therefore, paperwork and signing of multiple transfer forms is done away with. It
facilitates taking advances against securities on low margin/low interest.

Points To Remember

1. You may choose your DP based on your evaluation of their reputation, service
standards, charges, other conveniences, etc.
2. Open depository account with the same holding pattern as there on existing physical
securities. You will need to open separate accounts for every different combination of
holding pattern. Eg.: If 100 securities of company ABC & 200 securities of company
PQR are registered in the name of X as first holder & Y as second holder, one account
in name of X as first holder & Y as second holder is sufficient. Whereas, if 100
securities of company ABC are registered in the name of X as first holder & Y as
second holder & 200 securities of company PQR are registered in the name of Y as first
holder & X as second holder, you will need to open two accounts, one in the name of X
as first holder & Y as second holder and the second in the name of Y as first holder and
X as second holder.
3. Account opening procedure should typically take 2-5 days.
4. In case of holdings of a partnership firm, the account should be opened in the name of
the partner(s).
5. In case of holdings of a HUF, the account should be opened in the name of the Karta.
6. In case of a minor, the depository account should be opened in the name of the minor
and the guardians name should be mentioned. The guardian will sign as signatory on
behalf of the minor. For selling the securities of the minor, a court order should be
obtained.
7. In case of any difficulties, contact your DP.
8. Only securities admitted by NSDL can be dematerialized. The list is available with your
DP.
9. Only securities registered in the name of the account holder can be dematerialized.

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 10. Dematerialization is normally completed within 15 days after the share certificates have
reached the issuer/their R&T Agent. Thus it may take you a month from the date you
hand over shares, to receive demat credit.
11. Dematerialization would be done only when the issuer / their R&T Agent is satisfied of
genuineness of securities & ownership status
12. All the joint holders should sign the DRF.
13. The pattern of holding in the DRF should match the pattern of holding on the share
certificate & the pattern in which account is opened.
14. Demat requests with name(s) not matching exactly with the name(s) appearing on the
certificates merely on account of initials not being spelt out fully or put after or prior to
the surname, would be processed, provided the signature(s) of the client(s) on the DRF
tallies with the specimen signature(s) available with the issuer/ their R & T agent.
15. If the signature in the DRF does not match with the signature available with the issuer/
their R & T agent, the issuer/ their R & T agent may at the time of demat confirmation,
ask for additional documentation (like bank attestation/ notarization, etc.) to prove that
the certificate belongs to the person who forwarded the DRF.
16. In case there is any problem in processing the DRF, contact your DP and if he cannot
resolve the problem you may contact NSDL.

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CHAPTER 7
7. Buying and Selling of Dematerialization
7.1 INTRODUCTION
The procedure for buying and selling dematerialized securities is similar to the procedure for
buying and selling physical securities. The difference lies in the process of delivery (in case
of sale) and receipt (in case of purchase) of securities.
In case of purchase:-
The broker will receive the securities in his account on the payout day
The broker will give instruction to its DP to debit his account and credit investors
account
Investor will give Receipt Instruction to DP for receiving credit by filling appropriate
form. However one can give standing instruction for credit in to ones accounts that
will obviate the need of giving Receipt Instruction every time.

In case of sale:- The investor will give delivery instruction to DP to debit his account and
credit the brokers account. Such instruction should reach the DPs office at least 24 hours
before the pay-in as otherwise DP will accept the instruction only at the investors risk.

Rights

1. Dematerialized securities can be traded on those stock exchanges connected to NSDL.

At present, NSE, BSE, CSE, DSE, LSE, BGSE, OTCEI, MSE, ISE &ASE are
connected to NSDL. At these stock exchanges, two segments would be available to
trade in dematerialized securities :
o Unified (erstwhile physical) segment - In this segment delivery obligation can be
met by delivering dematerialized or physical securities at the option of the seller.
However, for a select list of securities prescribed by SEBI, securities cannot be
delivered in physical form in the unified segment, of stock exchanges connected to
NSDL. This list presently covers 160 securities. This list has been expanded to
cover a total of 200 securities with effect from January 17, 2000. Over a period,
this list would cover all actively traded securities.

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 o Exclusive demat segment - In this segment delivery obligation can be met by
delivering dematerialized securities only. Physical securities cannot be delivered in
the exclusive demat segment.

2. Procedure
Trading in dematerialized securities is done through your broker just like trading in
physical securities. After your broker executes the trade, your DP will help to deliver
shares to your broker (in case you sell) on the basis of valid instruction given by you
to your DP and receive shares from your broker (in case you buy) on basis of valid
instruction given by your broker to his DP.

7.2 Buy dematerialized securities

1. You purchase securities in any of the stock exchanges connected to NSDL through a
broker of your choice and make payment to your broker. Make sure you tell your broker
you want only demat shares.
2. Broker arranges payment to clearing corporation/ clearing house of the stock exchange.
3. Broker receives credit in his clearing account with his DP on the pay-out day. He can
immediately transfer these securities to your depository account, provided your account
is already active.
4. Broker gives instructions to his DP to debit his clearing account and credit your
depository account.
5. You give instruction to your DP for receiving credit in your depository account. If you
have given standing instruction to receive credits, no separate instruction for receiving
credit will be required.
6. If the instructions match, your account with your DP is credited.

7.3 Sell dematerialized securities

1. You sell your dematerialized securities in any of the stock exchanges linked to NSDL
through a broker of your choice.
2. You give instruction to your DP for debit of your depository account and credit of your
brokers clearing member account at least 24 hours i.e. one working day prior to the pay-

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 in date or before the deadline prescribed by your DP, so that your brokers clearing
account is credited at the time arranged with him.
3. On the pay-in day, your broker gives instruction to his DP for delivery to clearing
corporation/clearing house of the relevant stock exchange.
4. The broker receives payment from the clearing corporation / clearing house.
5. You receive payment from the broker for the sale in the same manner you would receive
payment for a sale in the physical mode.

Points To Remember

1. Trading continues to be through brokers. In case of any problem in execution of trade,

contact your broker and if he fails to resolve the problem you may contact the stock
exchange.
2. When you buy securities through the stock exchange, your brokers clearing account is
credited to the extent of the securities purchased, on receipt of instruction from clearing
corporation/ clearing house of the stock exchange. Your depository account is credited
only when your broker gives a delivery instruction to his DP. Securities are not directly
credited to your account by the clearing corporation/ clearing house of the stock
exchange. In case your broker does not give a delivery instruction, contact him or
concerned stock exchange or SEBI. If your depository account is not credited, in spite of
your broker giving valid instruction to his DP, contact the DP and if he fails to resolve
the same you may contact NSDL.
3. When you sell securities, you have to give a delivery instruction to your DP to transfer
the securities to your brokers clearing account. They are not automatically debited from
your account by NSDL or by the clearing corporation/ clearing house of the stock
exchange. In case the DP defaults in executing your instruction, the DP is liable to
compensate you for the loss incurred, provided your instruction was in
order and has been submitted to the DP at least 24 hours i.e. one working day prior to
the pay-in date or before the deadline prescribed by DP. In case the DP fails to resolve
your problem, you can contact NSDL.

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CHAPTER 8
8. DATA ANALYSIS
8.1 METHODS OF DATA COLLECTION
In the project work Primary data secondary data (both) sources of data has been used.
1. Primary data collection:
In dealing with real life problem it is often found that data at hand are inadequate, and hence,
it becomes necessary to collect data that is appropriate. There are several ways of collecting
the appropriate data which differ considerably in context of money costs, time and other
resources at the disposal of the researcher.
Primary data can be collected either through experiment or through survey.
The data collection for this study was done in the following manner:
Through personal interviews:-
A rigid procedure was followed and we were seeking answers to many pre-conceived
questions through personal interviews.
Through questionnaire:-
Information to find out the investment potential and goal was found out through
questionnaires.
Through Tele-Calling:-
Information was also taken through telephone calls.

2. Secondary sources of data:

In the secondary sources of data is used. (Internet , mazazine ,books, journals)

8.2 Tools of analysis

In the project work quantitative technique & percentage method are has been used.
8.2.1 RESEARCH DESIGN
For the proper analysis of data simple quantitative technique such as percentage were used. It
help in marketing more accurate generalization From the data available .The data which was
collected from a sample of population was assumed to be representing entire population was
interested .Demographic factor like age, income and educational background was used for
the classification purpose .

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8.2.2 DATA ANALYSIS
S AND INTERPRETATION
Q1. In which of these Financial Instruments do you invest into?

Financial Instrument Percentage of respondent

Mutual Fund 75%
Bond 16%
Online trading 7%
Derivative 2%
Table
Table.4 data analysis of financial instrument

Result of
Preference of
Investment

Fig. 6 Percentage of Financial Instruments

Interpretation:
This shows that although the mutual funds marke
markett is on the rise yet, the most favored
investment continues to be in the Share Market. So, with a more transparent system,
investment in the Stock Market can definitely be increased.

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Q2. Are you aware of online Share trading?

Aware of online share trading Percentage of respondent

Yes 72%
No 28%
Table.5 data analysis of online share trading

Fig .7 Result of awareness of online trading

Interpretation:
With the
he increase in cyber education, the awareness towards online share trading has
increased by leaps and bounds. This awareness is expected to increase further with the
increase in Internet education
education.

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Q3. Heard about Angel Broking?

Awareness of Angel Broking Percentage of respondent

Yes 48%
No 52%
Table.6
.6 data analysis of awareness of angel broking

Fig.8 result of awareness of angle broking

Interpretation:
This pie-chart
chart shows that re
reliance
liance money has a reasonable amount of Brand awareness in
terms of a premier Retail stock broking company. This brand image should be further
leveraged by the company to increase its market share over its competitors .

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Q4. Do you know about the facilities provided by Angel
Broking?

Awareness of Angel Broking Percentage of respondent

services
Yes 36%
No 64%
Table.7 data analysis of facilities by angel broking

Fig.9 Awarenes
Awareness of angle broking facilities
Interpretation:
Although there is sufficiently high brand equity among the target audience yet, it is to be
noted that the customers are not aware of the facilities provided by the company meaning
thereby, that, the company sh
should
ould concentrate more towards promotional tools and increase
its focus on product awareness rather than brand awareness

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Q .5 Which bank is easily available every
everywhere?
ere?

Company Name Percentage of respondent

Angel 15
ICICI 20
HDFC 15
Table.8 data analysis of easily available

20
18
16
14
12
10
8
6
4
2
0
Angel ICICI HDFC

Graph
Graph.2 Percentage of easily available

Interpretation:-
30% have respondent of Angel Broking Ltd, 30% have re
respondent
spondent of HDFC, 40% have

respondent of ICICI.

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Q.6 Which banking Demat account offered you a large
no. of services?

Company Name Percentage of respondent

Angel Broking 22
HDFC 10
ICICI 18
Table.9 data analysis of offers services

25

20

15

10

0
Angel HDFC ICICI

Graph
Graph.3 Percentage of offers services

INTERPRETATION:
30% have respondent of Angel Broking Ltd., 26% have respondent of HDFC, 44% have
respondent of ICICI.

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Q.8 Which company provide a less BROKARAGE
BROKARAG rate ?

Company Name Percentage of respondent

Angel Broking 22
HDFC 11
ICICI 17
Table.
Table.10 data analysis of brokerage rate

25

20

15

10

0
Angel HDFC ICICI 4th Qtr

Graph.4 percentage of brokerage rate

INTERPRTETATION:
44% have respondent of Angel broking ltd., 22% have respondent of HDFC, 34% have
respondent of ICICI.

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Q. 9 Which company provide you a large number of
product and services?

Company Name Percentage of respondent

Angel Broking 22
HDFC 10
ICICI 18
Table.11 data analysis of product and services

25

20

15

10

0
Angel HDFC ICICI

Graph.5 percentage of product and services

INTERPRETATION:
INTERPRETATION:-
44% have respondent of Angel Broking Ltd., 20% have respond
respondent
ent of HDFC, 36% have
respondent of ICICI.

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Represent a pie chart

Fig.10 Represent a pie chart

OBSERVATION

To study the sal es and distribution m anagement and impro ve the Customer
Acquisition Process by anal yzing thee consumer beh avior, response and
minds et towards the product and services the compan y offers.

1. Preference of Investment:
Consumers want to invest 75% in Mutual funds, 16% in Bonds, 7% in online
trading and 2% in Derivatives.

2. Awareness on Online Share Trading

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 72% consumers are aware of online share trading and 28% consumers are not
aware of online share trading.

3. Awareness of Angel Broking

48% consumers are know about Angel Broking and 52% consumers are not know
about Angel Broking.

4. Awareness about facilities provided by Angel Broking:

36% consumers are aware about the facilities provided by Angel Broking and
64% consumers are not know about the facilities provided by Angel Broking.

5. Availability of Bank
30% have respondent of Angel Broking Ltd, 30% have respondent of HDFC, 40%
have respondent of ICICI.

6. Which banking Demat account offered you a large no. of services?

4% have respondent of Angel Broking Ltd., 20% have respondent of HDFC, 36%
have respondent of ICICI.

7. Better email facility provided by bank

30% have respondent of Angel Broking Ltd., 26% have respondent of HDFC,
44% have respondent of ICICI.

8. Provide a less BROKARAGE rate

44% have respondent of Angel Broking Ltd., 22% have respondent of HDFC,
34% have respondent of ICICI.

9. Provide a large no. of Products and services

44% have respondent of Angel Broking Ltd., 20% have respondent of HDFC,
36% have respondent of ICICI.

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CONCLUSION
SUMMARY OF LEARNINGS EXPERIENCE
To get initial success in this field is very difficult. Although the business generation
becomes easier with time as we serve more people who then get added up in the loyal
clientage. Thus time and service are two most factors to get in this field.
Also the corporate remains a very important segment which gets business in bulk but retail
cannot be ignored which makes your business ticking.
Customer remains in the pivotal position.
Angel Demat Account is better than other Demat account. Angel Broking Ltd. have good
return of investment. A good brand is always welcomed over here people are aware of
quality so they go for ready to spend bucks of money.
At last all conclusion be concluded by that Angel Broking Ltd. is still growing industry in
India Angel Broking Ltd. account have less brokerage rate .
It provide a security with the use of special type of key .
Notwithstanding many problems, Indian stock market has emerged as a
significant financial intermediary, assisting efficient resource allocation, providing strong
support to Indian economy and help investors to realize the benefits of stock market
investing. The growing importance of the Indian stock market place may be noted in terms of
increased mobilization of funds and growing number of investors account. Indian stock
market industry has remained centered around a limited product range. This has happened
due to the tendency to avoid risk, inability to understand future market development and
changes in investor preference. The absence of product diversification and a confused market
situation has been made more by the absence of an innovative marketing network. Online is
considered as one of the innovative network. The product range offered by stock broking
firms needs to be redesigned to cater the changes in the short term, medium term and long
term savings and investment markets. Management is considered to be a key for the
operational efficiency of any business venture. This factor becomes even more crucial for
service ventures such as stock broking business venture. Stock market industry must
undertake a well-designed and comprehensive program of investor education especially
aimed at investors in rural and semi-urban areas. However this has been mostly neglected in

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India. In India most of the broking business comes from the small investors and efforts are
concentrated on serving them efficiently, and this would help them in being a good
intermediary for providing various financial services due to its reach to the last mile. SEBI
has been playing a significant role in the regulation of stock market. SEBIs steps like
dematerializing, and trading through net etc. has increased the transparency of the trading
than before. In the global market place no industry can afford to be struck by inertia. But it is
management which is crucial to the success of any business operation.

SUGGESTION/RECOMMENDATIONS

1. The Brand image of Angel Broking Ltd. is good in market but according to customer
satisfaction the company has to provide the better service.And also change the Market
strategy.
2. They should focus on print and electronic media advertisements to make more people
aware about them.
3. They should provide proper guidance to their customers about demat.
4. They should provide should offers and facilities to their customers to increase their
attractiveness about demat.
For opening an account they require lots of signatures in a kit, which should be reduced.

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REFERENCES
www.angelbroking.com
www.hdfc.com
www.icicidirect.com
www.demataccount.com
www.gooInternational Journal of Management and Social Sciences Research (IJMSSR)
ISSN: 2319-4421 Volume 2, No. 4, April 2013
International Journal of Transformations in Business Management http://www.ijtbm.com
(IJTBM) 2012, Vol. No. 1, Issue No. 6, Apr-Jun

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