Neelam final

A REPORT On “The problems faced by Demat account holders and their expectations towards Depository participants.” MBA(2009-2011) Under the Supervision of- Ms Jyoti Sharma (Faculty, PCTE) Mr. Sarbjit pal (ASM, HSBC Investdirect) Submitted by- Neelam Monga Punjab College of Technical Education Ludhiana Acknowledgement “Gratitude is not a thing of expression, it is more a matter of feeling”. In this present world of competition there is a race of existence in which those who are having will to come forward will succeed. Project is a bridge between practical and theoretical working, with this will I have joined the project. I really wish to express my gratitude towards all those people who have helped me. I am really indebted to Mr. Sarbjit pal (ASM, HSBC Investdirect) Ludhiana, for his kind hearted support and expert advice in the completion of the project. I am also very thankful to Ms. Jyoti Sharma (Faculty, PCTE) for her timely guidance, supervision & encouragement that have helped me to get this golden opportunity and who provided me her expert advice, inspiration & moral support in spite of her busy schedule & assignments, has mainly provided my understanding of this project. Last , but not the least, I say only this much that all are not to be mentioned but none is forgotten and I will like to extend my special thanks and gratitude to my parents who always encourage me in pursuit of excellence. Abstract Earlier Investors used to hold shares in the paper format. Nowadays they are stored electronically in the Demat account. The document of shares that is in paper form is demated and is kept electronically in an account. A Demat account can be opened with no balance of shares and there is no minimum balance to be maintained either. One can have a Zero cash balance even in one’s Trading Account. The Depository is the custodians of securities. It helps for shorter settlement cycles and immediate transfer of title of securities. Depository Participant is an agent of the depository through which it interfaces with the investor and provides depository services to the investors. This research project is basically to analyze the problems faced by the Demat Account holders and their expectations towards Depository Participants. The research design that has been used is Descriptive and the Sample Size is 100. The convenience Sampling technique has been used. The research data is collected with the help of Questionnaire. This Research project has helped to ascertain the problems faced by the demat account holders and the customer’s expectations from the depository participants in Ludhiana city. The Customer’s expectations are identified which will help in improving the quality of working of various DP’s in Ludhiana city. The customer’s satisfaction level from their share brokers was also revealed. Ms. Jyoti Sharma Neelam Monga (Faculty PCTE) (MBA 2C) Certificate 1 This is to certify that report entitled ‘Study on the problems faced by dmat account holder and their expectation from their DP services submitted for the degree of MBA in subject of summer training report, is a bonifide research report carried out by Neelam Monga, PCTE student under my supervision & no part of this has been submitted for any other degree. The assistance and help received for the course of investigation have been fully acknowledged Ms. Jyoti Sharma (Faculty Advisor) CONTENTS Page No. Introduction 1-15 Company Profile 16-33 SWOT Analysis 34-36 Ratio Analysis 37-47 Demat Account 48-59 Need for the study 60 Review of Literature 61-66 Objectives 67-68 Research Methodology 69-71 Data Analysis and Interpretation 72-85 Observation and Findings 86-87 Suggestion 88 Conclusion and Limitation 89 Bibliography 90 ANNEXURE 91-94 List of Tables Sr.NoTables NamePage No.1Number of Demat Account holder732Demat Account in Different companies743Source of information about the above company754The occupation of investors765Preference of Mode of Trade776The frequency of trading787 Rank the preferrance while opening a demat account798 The problem faced after opening an Account809The Problems faced by you while holding the Demat8110The satisfaction level with services provided by your DP’s8211The loan availed against your DP8412Factor considered by investors while selecting a particular DP85 List of Figures Sr.NoFigurePage No.1Number of Demat Account holder732Demat Account in Different companies743Source of information about the above company754The occupation of investors765Preference of Mode of Trade776The frequency of trading787 Rank the preferrance while opening a demat account798 The problem faced after opening an Account809The Problems faced by you while holding the Demat8110The satisfaction level with services provided by your DP’s8311The loan availed against your DP8412Factor considered by investors while selecting a particular DP85 Part A Introduction to Corporate and briefing about group companies Historical background of the group : The HSBC Group is named after its founding member, The Hongkong and Shanghai Banking Corporation Limited, which was established in 1865 to finance the growing trade between Europe, India and China. The inspiration behind the founding of the bank was Thomas Sutherland, a Scot who was then working for the Peninsular and Oriental Steam Navigation Company. He realized that there was considerable demand for local banking facilities in Hong Kong and on the China coast and he helped to establish the bank, which opened in Hong Kong in March 1865 and in Shanghai a month later. Soon after its formation the bank opened agencies and branches around the world. Although that network reached as far as Europe and North America, the emphasis was on building up representation in China and the rest of the Asia-Pacific region. HSBC was a pioneer of modern banking practices in a number of countries. In Japan, where a branch was established in 1866, the bank acted as adviser to the government on banking and currency. In 1888, it was the first bank to be established in Thailand, where it printed the country’s first banknotes. From the outset trade finance was a strong feature of the local and international business of the bank, an expertise that has been recognized throughout its history. Bullion, exchange, merchant banking and note issuing also played an important part. By the 1880s, the bank was acting as banker to the Hong Kong government and also participated in the management of British government accounts in China, Japan, Penang and Singapore. In1874 the bank handled China’s first public loan and thereafter issued most of China’s public loans. What is HSBC? We are the world’s local bank. Headquarters in London, HSBC is one of the largest banking & financial services organization in the world. HSBC’s international network comprises over 9500 offices in 76 countries & territories in Europe, the Asia-Pacific region, the Americas, the Middle East & Africa. With listings on the London, Hongkong, New York, Paris & Bermuda stock exchange shares in HSBC holdings places are held by nearly 200,000 shareholders in some 100 countries & territories. The shares are traded on the New York stock exchange in the form of American Depository Receipts. Through an international network linked by advertisement techniques, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services like- 1. Personal financial services 2. Commercial Banking 3. Corporate Banking 4. Investment Banking Vision Statement To become the preferred long term financial partner to a wide base of customers whilst optimizing stakeholders value! Mission Statement To establish a base of 1 million satisfied customers by 2010. We will create this by being a responsible and trustworthy partner! Names and Location of group companies : Latin America HSBC Mexico SA HSBC Bank Brazil SA, Banco Multiplo HSBC Bank Argentina SA Asia Pacific The Hongkong and Shanghai Banking Corporation Ltd Hang Seng Bank Ltd HSBC Bank (China) Company Ltd HSBC Bank Malaysia Berhad Middle East HSBC Bank Middle East Ltd HSBC Bank Egypt SAE The Saudi British Bank North America HSBC Bank USA Inc HSBC Finance Corporation HSBC Bank Canada Europe HSBC Bank plc HSBC France HSBC Trinkaus und Burkhardt AG HSBC Private Bank (UK) Ltd Products/Services and brands : Through an international network linked by advertisement techniques, rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services like- 1. Personal financial services 2. Commercial Banking 3. Corporate Banking 4. Investment Banking Personal Financial Services(PFS) HSBC India offers a wide range of competitively priced services & products to over 1.75 million individual resident Indians as well a Non-resident Indian customers across India, USA, UK, Middle East & South East Asia. HSBC’s 150 year presence in India allows it to enjoy the advantage of deep rooted knowledge of local markets & customs. This has lead to development of products & services, which are attuned to the financial needs of Indians in the cities where HSBC operatives. The HSBC brand is associated with core values such as transparency, trust & honesty. These factors enable HSBC India to remain highly competitive & at the leading edge of the retail & commercial banking market in the country. The distribution network in India consists of 47 branches in 26 cities supported by 170 ATMs at 142 locations. In addition, self service banking channels, such as Internet Banking & a 24 hour centralized all India Call Centre provide a strong backbone to the distribution capabilities. A second load balancing Call Centre became operational in January 2005 at HSBC Operations & Processing Enterprise (India) Private Limited, Chennai Customers can apply for all products & services online at www.hsbc.co.in. The bank offers a complete suite of products & services including HSBC Premier International, HSBC Premier, Power Vantage, Savings & Current Accounts, International Debit Cards & Term Deposits in addition to consumer loan products like International Credit Cards, Mortgage, Personal Loans, Educational loans & Overdrafts. HSBC is the 6th largest credit card issuer in India with over 1.3 million cards in force. Premier & mid market customers have access to comprehensive Financial Planning & HSBC is a market leader in the provision of Wealth Management services. In 2005, HSBC was the largest distributor of Retail Mutual Funds in India, & the biggest sales channel for Banc assurance partner TATA AIG. Non-Resident Indians (NRI’s) constitute 56% of the Bank’s deposit base. The banking needs of NRIs are fulfilled from branches in India & 11 NRI centers abroad. We have over 84,000 NRI Customers, & have started referring customers to Financial Planning Managers & the Private Bank in the host countries, to address their needs for investment products. A free remittance service is offered between accounts held by NRIs with HSBC overseas & onshore. In 2006, an International Banking Centre was established facilitate cross border business referrals. In October 2005, HSBC launched an onshore Private Banking proposition branded HSBC Private Banking. The proposition targets clients with minimum assets of INR 25 M & encompasses asset classes such as Real Estate, Equity Derivatives & Commodities. This is an addition to Fixed Income & Equities, which are already being offered. The proposition uses “Active Advisory” as its cornerstone & key differentiator. The Bank has sought RBI approval to establish a separate consumer finance branch network under a non banking financial institution, which will distribute personal loans & ancillary products to a broader segment of the Indian consumer base than is currently served by the Bank’s existing product portfolio. The personal loan product is being piloted through the bank branch network & initial results are promising. Wealth Management & Branch Banking HSBC has 47 branches Pan-India across 26 locations wealth Management services are delivered to customers through qualified Wealth Management across each of these branches. Wealth Management helps customers develop & execute a realistic & practical long term savings, investments & protection plans by investing in mutual funds, bonds & purchase of insurance products manufactured by TATA AIG. Qualified, trained & accredited Wealth Management assist customers in charting a road map to achieve their individual financial goals & protect their family from unforeseen eventualities keeping in mind their available resources & based on each customers independent risk profile. Wealth Management services is currently offered to HSBC Premier & Power Vantage customers. Commercial Banking HSBC is a leading provider of financial services to small, medium-sized and middle-market enterprises. The Group has over 43,000 such customers in proprietors India, including sole, clubs and associations, incorporated businesses companies. Commercial and publicly quoted Banking provides a full range of banking services to these customers including multi-currency business accounts, payment and cash management, trade services, factoring and a range of borrowing solutions. In India, Commercial Banking has a presence in 47 branches covering 26 key cities and for the convenience of our customers, a multi channel service including Internet and Phone banking. For SME customers, HSBC offers the complete range of transaction baking services as well as unsecured loans and loans for and against property. The services are supported by a large Sales and Relationship Management team in key locations across the country India is the first country in the HSBC Group where Commercial Banking lends to Microfinance Institutions, thus providing indirect funding to hundreds of small business owned and run by members of underprivileged sections of society. A dedicated unit has been formed to focus on Microfinance and other Priority Sector institutions, with a view to further reach out to the marginalized and under banked. Factoring HSBC India offers a comprehensive range of Factoring and Supply Chain Finance Solutions, which include the following products: For Vendors/Suppliers/Purchase Channel of our corporate customers

For the Sales Channel of our corporate customers

Factoring (With or Without Credit Protection)

Export Factoring (With or Without Credit Protection)

Portfolio Invoice Discounting (With partial credit protection)

Distributor Finance.Payables Financing :-HSBC India’s Payable Financing product enables companies to finance their payables to vendors. This helps companies to provide immediate liquidity to vendors against their supplies at competitive rates and will enable the company to negotiate better pricing terms with vendors. It also enables the vendors to improve their cash flow by providing continuous liquidity against their receivables. Our payables financing products can be structured either against Bills of Exchange or Accepted Invoices. Purchase Order Financing is a facility to suppliers of our Corporate Banking Clients to finance their pre shipment working capital requirements Pre shipment working capital lines are sanctioned to the supplier’s against Purchase Orders issued to the suppler Factoring: -This is a service that covers the financing and collection of account receivables in domestic trade. Receivables are factored, by HSBC with added service of credit protection, collection and sales ledges administration. Thus the management of the company may concentrate on production and sales and need not concern itself with non-core activities like collection and sales ledger administration. Export Factoring enables companies to finance their open account export sales at competitive rates either in Rupees or Foreign Currency. Through a network of overseas based correspondent factors, HSBC provides credit protection against buyer default and collection services. Portfolio Invoice Discounting Essentially covers purchase of receivables with partial credit protection based on a First Loss Deficiency Guarantee. The portfolio should be well spread with acceptable levels of concentration and the debtors must have had a satisfactory track record with the company. A field audit will be conducted to determine portfolio quality based on which a First Loss Deficiency Guarantee percentage will be agreed Collection remains the responsibility of the Corporate with repayments either on a pre-agreed schedule or based on actual collections. Distributor Finance is currently offered to the distribution channel of Large Corporate Banking Clients and can be structured to suit the specific requirements of each corporate and its distribution channel. Through the Distribute Finance Program, HSBC finances company’s dealers, which will assist the company in providing steady, assured credit to its distribution chain. Payments and cash management Integrated domestic and regional cash management solutions are provided to corporate and institutional customers in India. The suite of offerings under the cash management umbrella includes comprehensive Receivables Management solutions, with an endeavor to completely integrate with the customer’s back-end operating systems and processes. HSBC is the leading foreign bank in India in providing capital market solutions, which include Bankers to Issue, Escrow account Services and Dividend payments solutions. Six Sigma measurement practices are followed for our operational capabilities. HSBC net, the HSBC Group’s online real time web-enabled corporate banking platform, allows customers to execute financial transactions, obtain international financial market information and review details of their domestic and international accounts form anywhere in the world, 24 hours a day. Trade (international and domestic) service HSBC offers a wide range of international and domestic Trade products. In India, we offer one of the largest trade processing capabilities among peer banks, spread across 5 cities. Each of our Trade processing centers is ISO 9001-2000 certified. We work closely with Group Offices overseas and leverage our extensive global network to offer structured, tailor made solutions to a wide range of customers. Our clients in India include large India and multinational companies, Mid Market companies as well as customers in the Small and Medium Enterprises segment. Corporate And Institutional Banking Corporate Banking (CB) is an integral part of the Global Banking structure which focuses on offering a full range of service to multinationals, large domestic corporate and institutional clients a wide range of banking and financial services provided to domestic and international operations of large local corporate and local operations of multinationals corporations. Services include access to commercial banking products, including working capital facilities such as domestic and international trade operations and funding, channel/distributor financing, and overdrafts, as well as domestic and international collections and payments, INR and Foreign currency term loans (external commercial borrowing in foreign currency), letters of guarantee etc. Institutional Banking drives the Group’s relationship with banks, financial institutions, securities houses, insurance companies, and asset management companies and other non-banking companies, non-government and development organizations operating in India. Market leadership position based on strong relationships with major financial institutions. Investment Banking and Markets brings together the advisory and financing, equity Securities, equity linked transactions, asset management, treasury and capital markets, and private equity activities of the Groups to complete the Global Banking structure and provide a complete range of financial products to our clients. Clients are serviced by sector based client service teams that combine relationship managers, product specialists and industry specialists to develop customized financial solutions. These form the relationship team along with the Investment Banking structure and provide a complete range of financial products to our clients. The Corporate Bank (CB) in India was top ranked (1st overall) in the 2005 Greenwich Survey with a Greenwich Quality Index (GQI) of 647. Currently CB manages approx. 470 CB relationships with total advances of approx USD 1.08Bn as at end of Dec05 and total deposits of USD .98Bn. Sectoral account management- Improved industry knowledge andsector4 expertise. The CB portfolio is largely spread within the following sectors divided as under. CORPORATES INSTITUTES Consumer Brands Banks Industrials &Technology Financial Institutions Energy and Utilities Securities Telecommunications MutualFunds/AssetManagement Companies Automotive Insurance Healthcare Financial Sponsors Transport and Logistics Business Process Outsourcing (BPO’s) Media Broker and Dealers Investment Banking 1. HSBC FIXED DEPOSITS When it comes to assured returns, choosing the right type of savings scheme makes all the difference. HSBC Fixed Deposits let you make the most of value-added benefits as you create wealth at low risk. Features & Benefits The superior Fixed Deposit to invest in, for a secure future You can now open a Fixed Deposit with Rs. 10,000 only Enjoy high rate of returns on your HSBC Fixed Deposits Choose from a wide range of tenors as per your Convenience Avail of our special rates for select tenors Certificate of Deposit Earn interest for funds invested from 15 days to one year, with HSBC’s Certificate of Deposit (CDs). CDs can be availed by individuals (other than minors), corporations banks, companies, trusts, funds, associations etc. Non-Resident Indians (NRIs) may also subscribe to CDs on a non-repatriable basis only. Advantage Tenure – A Certificate of Deposit is issued for a period not less than 15 days & not exceeding 1 year from the date of issue . Transfer Mechanism – Certificate of Deposit held in a physical form are freely transferable by endorsement & delivery. Those in demat form can be transferred as per the procedure applicable to other demat securities. Markets (Domestic & Export): Group Service Centres The HSBC Global Technology Centre in Pune, India develops software for the entire HSBC group.As a cost saving measure HSBC is off shoring processing work to lower cost economies in order to reduce the cost of providing services in developed countries. These locations take on work such as data and customer service, but also internal software engineering at Pune, Hyderabad(India), Vishakhapatnam (India), Kolkata (India), Guangzhou (China), and Curitiba (Brazil).Chief Operating Officer Alan Jebson said in March 2005 that he would be very surprised if fewer than 25,000 people were working in the centres over the next three years: “I don’t have a precise target but I would be surprised if we had less than 15 (global service centres) in three years’ time.” He went on to say that each centre cost the bank from $20m to $30m to set up, but that for every job moved the bank saves about $20,000 (£10,400). Trade unions, particularly in the US and UK, blame these centres for job losses in developed countries, and also for the effective imposition of wage caps on their members. HSBC Building, Shanghai Currently, HSBC operates centres out of eight countries, including Brazil (Curitiba), The Czech Republic (Ostrava), India (Kolkata, Hyderabad, Bangalore, Visakhapatnam, Mumbai, Gurgaon andPune), China (Shanghai, Guangzhou and Shenzhen), Malaysia (Kuala Lumpur), Poland (Krakow),Sri Lanka (Rajagiriya) and Philippines (Manila). The Malta trial for a UK high value call centre has resulted in a growing operation that country. An option under consideration is reported to be a processing centre in Vietnam to access the French skills of the population and therefore cut costs in the bank’s French operations. On June 27, 2006, HSBC reported that a \"
small number\"
of customers had suffered from fraud totaling £233,000 after an employee at the Bangalore call centre supplied confidential customer information to fraudsters. HSBC Private Bank HSBC Private Bank is the group's private banking operation, providing private banking and trustee services to wealthy individuals and their families worldwide. The Private Bank has in excess of 60 offices worldwide, with the major centres being Miami, New York, London, Geneva and Hong Kong. HSBC Premier HSBC Premier is the group's premium financial services product. The exact benefits and qualification criteria vary depending on country, but typically require deposits and investments of at least $100,000, £50,000, or €100,000. Alternatively those who have an individual annual income of at least £100,000 paid into their HSBC Premier Bank Account and are a customer of the bank's Independent Financial Advisory Service. Customers have a dedicated Premier Relationship Manager, global 24 hour access to call centres,free banking services and preferential rates. A HSBC Premier customer receives the HSBC Premier services in all countries that offer HSBC Premier, without having to meet that country's qualifying criteria. HSBC Bank International HSBC Bank International is the offshore banking arm of the HSBC Group, focusing on providing offshore solutions and cross border services to expatriates andmigrants. It provides a full range of multi-currency personal banking services to a range of customer segments, including a full internet banking and telephone banking service. Sometimes referred to as \"
HSBC Offshore\"
, the business also offers independent financial planning, and has representative offices all over the world, often working alongside local HSBC operations in those regions. HSBC Bank International originated from the business started by Midland Bank and is based in the Channel Islands with further operations on the Isle of Man. Its operations in the Channel Islands are centered around its registered headquarters on the seafront in St Helier, Jersey. Named 'HSBC House', the building comprises departments such as Premier, Global Funds & Investments, e-Business and a 24 hour 'Direct Banking Centre'. HSBCnet HSBCnet is a global service that caters to local business needs by offering specialised functionality for different regions worldwide. The system provides access to transaction banking functionality - ranging from payments and cash management to trade services features - as well as to research and analytical content from HSBC. It also includes foreign exchange and money markets trading functionality. The system is used widely by HSBC's high-end corporate and institutional clients served variously by the bank's global banking and markets, commercial banking and global transaction banking divisions. HSBCnet is also the brand under which HSBC markets its global e-commerce proposition to its corporate and institutional clients. HFC Bank (UK Operation) is a wholly owned subsidiary, with 135 High Street branches in the UK selling loans to the \"
sub-prime\"
market. During 2007 and 2008, has been trying to fend off a union recognition campaign by the Trade Union Unite. HSBC Direct HSBC Direct is a telephone/online direct banking operation which attracts customers through mortgages, accounts and savings. It was first launched in the USA in November 2005 and is now available in Britain, Canada,Taiwan, South Korea and France. Poland is launching business direct in September 2009. Other relevant information : TypePublicLSE: HSBASEHK: 005NYSE: HBCEuronext: HSBBSX: 1077223879IndustryBankingFinancial servicesInvestment servicesFoundedHong Kong (1865)Founder(s)Thomas SutherlandHeadquartersLondon, United Kingdom[1]Number of locations9,500 offices in 88 countries & territoriesArea servedWorldwideKey peopleStephen Green(Group Chairman)Michael Geoghegan(Group CEO)ProductsFinance and insuranceConsumer BankingCorporate BankingInvestment BankingInvestment ManagementGlobal Wealth ManagementPrivate EquityMortgagesCredit CardsRevenue▼ $103.74 billion (2009)Operating income▼ $7.079 billion (2009) Profit▼ $5.834 billion (2009) Total assets▼ $2.364 trillion (2009) Total equity▲ $128.299 billion (2009) Employees302,000 (2009) SubsidiariesHSBC Bank plcHSBC GLT IndiaThe Hongkong and Shanghai Banking CorporationHSBC Bank USAHSBC Bank Middle EastHSBC MexicoHSBC Bank BrazilHSBC FinanceWebsiteHSBC.com Introduction to particular firm /division PROFILE OF THE IL&FS INVESTSMART LTD. Infrastructure Leasing & Financial Services Limited (IL&FS) is one of India's leading infrastructure development and finance companies IL&FS has a distinct mandate catalyzing the development of infrastructure in the country. The organization has focused on the commercialization and development of infrastructure projects and creation of value added financial services. From concept to execution, IL&FS houses the expertise to provide the complete array of services necessary for successful project completion: visioning, documentation, finance, development, management, technology and execution. This company was started in 1980 with a major objective of financing major infrastructure and leasing services. Over the years, IL&FS has broad-based its shareholding, which today includes Life Insurance Corporation of India, ORIX Corporation – Japan, Housing Development Corporation of India, Abu Dhabi Investment Authority, State Bank of India, and Central Bank of India. IL&FS Investsmart Securities Ltd (IISL) is one of India’s leading financial services organizations. IISL, through its subsidiaries in India and Singapore, (Shown in Figure 1.1) provides a wide range of investment products to its retail and institutional banking, insurance broking & distribution, mutual funds distribution and related financing services. IISL’s 2,000 employees provide a complete range of investment solutions to over 138,000 customers in India through its 88 branches and 19 franchised outlets from 133 cities and has been recognized as “National Best Performing Financial Advisor – Retail” for two years in a row (06-07 & 07-08) BY CNBC TV 18. Fig.1(a) Subsidiaries of IL&FS Ltd. IL&FS Investsmart Securities Limited IL&FS Investsmart Securities Limited (IISL) is one of India’s leading financial services organizations providing individuals and corporate with customized financial management solutions. At IISL, they believe in \"
Realizing customer goals together\"
. One will find in them - a trusted investment partner to help customer work towards achieving investor’s financial goals. IL&FS institutional expertise, combined with a thorough understanding of the financial markets results in appropriate investment solutions for investors. The strong team of Relationship Managers, Customer Service Executives, Advisory Managers and Research Analysts, offers efficient execution backed by in-depth research, knowledge and expertise to customers across the country. With a pan-India presence of over 300 offices, IIL is geared to meet all the investment needs through its branches. IL&FS Investsmarts Limited is an initiative in the field of Financial Services started by Infrastructure Leasing & Financial Services (IL&FS), an institution known for its innovative and pioneering initiatives in the areas of Infrastructure, Corporate Finance and Investment Banking. IISL was set up in October 1997 and began retail operations in September1998. IL&FS Investsmart Securities Limited (IISL) was set up with the objective of becoming one of the leading full service brokerage houses in the country with a strong expertise in web-based technology as well as strengths in physical distribution. Today with a presence in more than 90 cities across India through more than 300 outlets, IISL has become one of the most prominent players in the Financial Services Industry with service offerings across different categories. In the year 2008 investsmarts securities received the Best Performing National Financial Advisor – Retail Segment at the CNBC TV 18 National Financial Advisor Award. The Retail Business Division at IISL is involved in dealing with a range of financial products offered to customers across India through multiple locations. The retail business is further categorized into various business divisions catering to varied needs of our customers. These include divisions catering to customers for Investment options such as Equity Trading, Derivatives Trading, IPO Investments, Fixed Income products, Mutual Fund Investments as well as Insurance and Home Loans Advisory services. In particular, IL&FS have always felt the need for a successful brokerage Group to have an international capability. IL&FS believe that the strength of the HSBC Group provides a unique opportunity for Investsmart to execute its strategic vision. It is IL&FS intention to retain a close association with Investsmart through co-operation on a number of areas that will be mutually beneficial and on an arm's length basis” Mr.Ravi Parthasarathy added, “I believe that HSBC Group will provide Investsmart employees significant opportunities to enhance the value proposition for their customers. Investsmart employees will also benefit from the training and development infrastructure that arises from being a part of one of the world’s leading banking organizations.” Corporate Action To establish a base of 1 million satisfied customers by 2010. We will create this by being a responsible and trustworthy partner !An approach to business that reflects responsibility, transparency and ethical behaviour. Respect for employees, clients & stakeholder groups.ILL’s strong team of Relationship Managers, Customer Service Executives, Advisory Managers and Research Analysts, offers efficient execution backed by in-depth research, knowledge and expertise to customers across the country. With a pan-India presence of over 300 offices, IIL is geared to meet all the customers’ investment needs through an office nearby. All the interested investors need to do is drop in at the nearest branch or call and ILL will be happy to do the rest! ILL says about its Customer At IIL, we believe in \"
Realizing your goals together\"
. Customer will find in IL&FS a trusted investment partner to help work towards achieving financial goals of clients. IL&FS institutional expertise, combined with a thorough understanding of the financial markets results in appropriate investment solutions for clients. Advantages Of IL&FS Today, IL&FS Investsmart Limited is one of India’s leading financial services organization delivering value and innovation to over 100,000 customers through more than 300 offices across the India. 7 Reasons for investing with IL&FS Investsmart Limited is smarter. Customization: They formulate investment plans based on investors’ individual requirements.

Expertise: They bring within customer reach, IL&FS institutional expertise and their valuable understanding of the financial markets.

One-stop-shop: They cater to all investors’ investment needs under one roof.

Trust: They enjoy the pedigree of IL&FS and share its expertise in financial services.

Personalised Service: They help customer through the entire investment process, step by step, with innovative and efficient services.

Unbiased & Objective Advise: They partner you in your investment process, with our team of expert investment advisors.

Extensive Reach: Through a host of mediums: - offline through more than 300 offices across India.- Online through our website.

Retail Business: Retail offerings of IIL seek to cover all financial planning requirements of individuals, which include providing personalised investment management services including planning, advisory and execution and monitoring of the full range of investment services. Broadly the retail services are divided into two broad categories. HSBC in India The HSBC Group in India is represented by several entities including The Hong Kong and Shanghai Banking Corporation Limited which offers a full range of banking and financial services to its over 2 million customers in India through its 47 branches and 170 ATMs across 26 cities. HSBC is one of India’s leading financial services groups, with over 33,000 employees in its banking, investment banking and capital markets, asset management, insurance broking, two global IT development centres and six global resourcing operations in the country. The Bank is the founding and a principal member of the HSBC Group which, with over 10,000 offices in 83 countries and territories and assets of US$2,354 billion at 31 December 2007, is one of the world’s largest banking and financial services organisations. Sale of Stake in Investsmart to HSBC IL&FS agrees to sell its stake in Investsmart to HSBC. Infrastructure Leasing and Financial Services Limited (IL&FS), is to sell its 29.36 percent stake in IL&FS Investsmart Limited (Investsmart), a leading retail brokerage house in India, to HSBC. Under the terms of the agreements, HSBC, through Group subsidiaries, proposes to acquire IL&FS’s 29.36 per cent stake of Investsmart for a consideration of INR 410 crores (approximately US$ 96.9 million). In addition, IL&FS will be paid INR 82 crores (approximately US$ 19.4 million) as part of a three–year non-compete agreement. HSBC also proposes to acquire an additional 43.85 per cent stake in Investsmart from E*TRADE Mauritius Limited, an indirectly wholly-owned subsidiary of E*TRADE Financial Corporation. Both IL&FS and E*TRADE Mauritius Limited will receive a price of INR200 per share for their respective stakes. HSBC will also make an open offer to acquire up to 20 per cent of the remaining shares in Investsmart. Details of the open offer to Investsmart shareholders will be published in the Indian press and distributed to shareholders in accordance with local regulations. Established in 1997 by IL&FS, Investsmart is a financial services firm with a strong presence in retail broking. It has a national distribution network comprising 88 branches, 190 franchise outlets and more than 660 terminals in 133 cities throughout India. Its 2,000 staff serves over 138,000 clients. While strong in retail broking, it also has businesses in Institutional broking, investment banking, wealth management, insurance distribution and margin financing. Ravi Parthasarathy, Chairman of IL&FS, said “IL&FS’s goal is to position IIL as a leader in the brokerage sector. In particular, IL&FS have always felt the need for a successful brokerage Group to have an international capability. And believe that the strength of the HSBC Group provides a unique opportunity for Investsmart to execute its strategic vision. It is IL&FS intention to retain a close association with Investsmart through co-operation on a number of areas that will be mutually beneficial and on an arm's length basis” Mr. Parthasarathy added, “I believe that HSBC Group will provide Investsmart employees significant opportunities to enhance the value proposition for their customers. Investsmart employees will also benefit from the training and development infrastructure that arises from being a part of one of the world’s leading banking organizations.” HSBC will be making the acquisition through Group subsidiaries, including HSBC Securities and Capital Markets (India) Private Limited, the Group’s broking arm in India. The agreement and open offer are subject to regulatory and other approvals. With a market capitalization of approximately US$300 million, Investsmart is listed on the National Stock Exchange and the Bombay Stock Exchange and its Global Depository Shares are listed on the Luxembourg Stock Exchange ends/more. PRODUCT PROFILE All the products of ILFS can be broadly divided into the following two categories: Online Trading Products

Other services.1. Online Trading Product of IL&FS Investsmart Basically IL&FS Investsmart offers three types of products to its retail customers. They are: SmartStart

SmartTradea. SmartSTART: SmartStart is a powerful browser based trading system for those who are relatively new to online investing. A unique integrated account, which integrates customer banking, broking, and demat accounts of the clients. A comprehensive trading service, which allows customer to invest in equities and derivatives. SmartStart trading platform allows customer the flexibility of trading on any internet capable system, with access to both the NSE and BSE System Requirement Browser Type: Microsoft Internet Explorer 6.0 or higher (Java enabled)

Internet Connection: Broadband/Dial-Up connection (Modem at a minimum of 28.8/33.6 Kbps)

System: Pentium 3 or 4 GHz or best available at market RAM (Physical) 128 MB or better

Operating System: Windows 98/2000 or Windows XP.Features of SmartStart Freedom of information.

Control of investor’s money.

Ensure the best price for investors.

Live financial news and analysis.

Access to NSE and BSEb. SmartINVEST SmartInvest is a browser-based system designed for customers who transact occasionally. It is ideal for investors who believe in the Buy and Hold Approach towards investment in equities. SmartInvest's capability as a browser-based trading platform gives customer the benefit of real-time streaming data with the flexibility of trading on any Internet capable system. With access to both the NSE and BSE, customers are in the driver's seat when routing their order to the best price on either of the exchanges. SmartInvest sophisticated yet easy to use point and click order entry interface allows customer to react more quickly to the markets and make better decisions. System Requirement Browser Type: Microsoft Internet Explorer 6.0 or higher (Java enabled)

System: Pentium 3 or 4 Ghz or best available at market RAM (Physical) 128 MB or better

Operating System: Windows 98/2000 or Windows XPFeatures of SmartInvest Instant Loading: The browser- based applet system allows customer to instant access to client’s account with no wait time, unlike other system that takes a few minutes to load. Works behind a proxy: This platform can be accessed on any internet-enabled network. They can be accessed even from costumer work place. Live streaming quotes: Keeps an eye on the stocks of customer’s choice with streaming real time quotes and customizable market data. Color-coded price changes help them to spot trends and in turn help the customer to react faster. Multiple watch lists: The new watch list option allows the customer to create up to 10 groups of watch list with each group accommodating 15 scripts. Each watch list can be personalized by the customers according to their choice of scripts. NSE and BSE Access: Flexibility of trading on both NSE and BSE via a single screen. Single order form for Cash and F & O: Single order form offers the customers the convenience of transacting in various segments of the market without having to switch between multiple windows. Point and click order entry: Makes order entry quick and simple with a click on the security, the same is inserted on the order form in the trade screen. Hot key functions: Using a single keystroke (hotkey) function the customer can achieve important task very similar to a broker’s terminal. Accessing important reports is also one keystroke away. Market depth window: It gives an immediate “at a glance” information about the stock they are following. The view provides the best 5 bids and offers quotes and the outstanding order quantities. Back office access: View segment wise ledger bills and contract notes, trades, positions, account balance, realized/unrealized profit and loss, and buying power all in real time. c. SmartTRADE: SmartTrade is an EXE based desktop software designed for active traders who transact frequently to capture favourable short-term price movements. The platform offers active traders the tools they need to make critical decisions with confidence. SmartTrade is designed and built from the ground up to address the needs of active traders. SmartTrade makes the most of state-of the-art technology to deliver power, speed and reliability. Through an easy-to-use interface, users are provided with the same tools and advantages that the professionals enjoy. System Requirement Browser Type: Microsoft Internet Explorer 6.0 or higher (Java enabled)

Operating System: Windows 98/2000 or Windows XP.This account is an EXE based desktop software designed for active traders who transact frequently to capture favourable short-term price movements. The platform offers active traders the tools they need to make critical decisions with confidence. Smart Trade is designed and built from the ground up to address the needs of active traders. Smart Trade makes the most of state of the art technology to deliver power, speed and reliability. Through an easy to use interface, users are provided with the same tools and advantages that the professionals enjoy. Features of SmartTrade Fully customizable display: The save desktop option allows the clients to save their created trade screen layout, so the next time they access the application the created layout is not lost. Dynamic charts with Indicators: Provides the clients a wealth of charting capabilities and timing indicators, which allow them to go right into the action with real time daily charts, and intra-day charts. Watch price movements by minutes, days or weeks. EOD Charts: Smart Trade puts up to 5 years of in depth history at their command with the power to instantly back-test any trading strategy they design, before risking one rupee of their trading capital. Real- Time market data: Get real time market data from both NSE and BSE, similar to what a professional broker gets. Advanced alert capabilities: Alert window allows the customer to be free from watching every tick. Users can be notified once a security has reached the set parameters. Multiple securities can be monitored using the set parameters. These alerts can be triggered both visually and audibly. Live order status: Tracking all their orders are made easy through the order status screen. Further drill down into all details pertaining to an order is available in the order detail sub report. Track your orders real time: Track customer stock orders and trades in real time. Real time position updates: All their positions are updated automatically and instantly. The need of refresh button is avoided. Dynamic buying power: It reflects their credits and debits instantly on every trade execution. No need to refresh each statement to know their latest buying limits. Derivative chain: This feature provides with a list of all derivative contracts available for the selected security. To view derivative prices of a security just right click on the symbol and click on derivative chain. Lock terminal option: If the system is unattended, this function locks the trading platform for the customers and can be accessed again only on providing the proper login details. Message window docking: This feature enables the customers to receive trading messages, intraday trading calls and messages from both the exchanges flashed real time onto their screens. 2. Advisory Services Basically IL&FS Investsmart offers following types of services to its retail customers. They are: Mutual fund advisory services.

Portfolio management services.

IPO Advisory and Distribution Services.

Investment Advisory services.a. Mutual Fund Advisory Services As a part of Mutual Fund Advisory Services, their team of experts across India helps investors in selecting the right scheme from over 500 offerings, matching customer needs, goals and risks. In addition to this, we also help you constantly monitor their MF portfolio, making changes according to the changing needs as per the market scenario, in order to make customers money work for investors. At IL&FS Investsmart (IIL), their expert teams of relationship managers interact with investors on a regular basis to discern customer changing needs, in tune with the changing environment. Most of investors require some assistance in making selections appropriate to their individual needs. Investors need sound advice from people who have expertise to decipher the financial jargon of investment options available today. Their Investment Advisory Team helps customer customize and execute plans, based on their individual needs towards wealth maximization. b. Portfolio Management Services (PMS) Financial markets today offer enormous growth potential. But managing investors own investments can be an extremely challenging task. Anticipating market trends, assessing the impact of socio-economic changes on customer investments, keeping abreast of latest corporate developments and financial analysis all adds up. Managing one’s investments has become nearly a full-time affair that requires considerable time and expertise. At IL&FS Investsmart, they offer customer just the solution that allows clients to relax as IL&FS put their money to work through the IIL-PMS, a Discretionary Portfolio Management Service. c. IPO Advisory and Distribution Services IL&FS Investsmart (IIL) is one of India's leading companies engaged in the activity IPO Advisory and Distribution. IL&FS primary markets division does a comprehensive research before recommending issues to clients. IL&FS pan India reach helps us in mobilising large number of applications across India during public offerings, this has ensured that constantly figure amongst the top ranking performers in the primary market distribution space. As a part of their online offering, customers can invest in IPO's not only through IL&FS branches but also through our website, which also provides customer with regular updates on the IPO scenario, Open IPO's as well as all the forthcoming IPO's at any given point of time. The primary markets distribution division works in conjunction with the retail and wholesale distribution networks, as well as IL&FS private client group. In case there are not IL&FS customers, but still want to invest in any particular IPO, IL&FS suggest client to visit any of branch locations near clients or else call us for an application form and IL&FS would courier it to customer. d. Insurance Advisory Services IL&FS Investsmart (IIL) is customer one stop shop for all Insurance & Retirement needs. They have also been recognized as India’s Best Retail Financial Advisors at the CNBC TV18 Financial Advisory Awards 2006-07, 2007-08. Their key service features include the following: Risk management solutions for all Comprehensive research for all policies available on a regular basis Recommendations on a comprehensive insurance cover based on clients needs Maintain proper records of client policies e. Investment Advisory Services The investment advisory team in the company helps customize plans, base on customer individual needs. 3. Other services Basically IL&FS Investsmart offers following types of other services to its retail customers. They are: Online services.

Research and Financial Analysis.

Value added services.a. Online Services The website offers unique features such as real time news and analysis, a personal portfolio manager, research tools, corporate profiles, mutual fund and product options, IPO centres, stock alerts, investment advisory services, query solving and much more. b. Research and Financial Analysis The research team in the company thoroughly studies each asset class-equity, mutual funds, commodities and fixed income products. The qualified financial analysts in the company study the market trends and make objective recommendations, so that customers can make well-informed decisions. c. Value Added Service Smart update – Extensively researched monthly reports detailing the market performance of various investment options. Mutual fund Weekly updates – Analysis of the Mutual Fund industry, offering an overview of Mutual Fund Schemes. Flavour of Equity – Monthly reports on the change in exposure in the top 10 stocks, churning of portfolios and the entry and exit of stocks by the respective fund managers of select Mutual Fund companies. Bond Fund Snapshot – Monthly reports on analysis of bond funds of select mutual fund companies. Rolling returns – Monthly reports on the fundamental and technical call for equities and derivatives for short term. Market wrap – Daily post market analysis. Smart trader – Daily reports on the fundamental and technical call for equities and derivatives for short term. Equity Research reports – Sector and company wise reports on the fundamentals, along with a recommendation of the stock. Strategy note – Quarterly note on the broad equity market views, macro fundamentals and top stock picks. Result preview – Pre result quarterly reports on select companies. Result update – Post result quarterly reports on select companies. Event notes – Implications and analysis of major corporate events like mergers and takeovers. Visit notes – Notes on the company’s outlook and discussion during a corporate visit. Deri Watch – Weekly, sock specific technical and derivatives statistics reports. Deri Strat – Daily derivatives market strategy. IPO Updates – Analysis on the current IPO with support for and against it. Policy Updates – Updates and analysis of important announcements and policies like the budget and monetary. Morning coffee – Daily update on the Indian and International financial markets. Morning Track – Monthly research reports on the debt and money markets. Commodity reports – Daily and weekly commodity reports. Depository & Custodial services - Company also offers dematerialization services as the company is Depository Participant of NSDL. Top Management A committed and formidable management team anchors the company towards its goal and provides direction in diverse areas of business strategy, operating management, regulatory reporting, human resources development, product development etc. Equipped with excellent domain knowledge and extensive experience, they drive IIL’s vision. Mr. Manasije Mishra MD & CEO

Mr. Avdhoot DeshpandeHead - Equity and Capital Markets

Mr. Vipul Shah Head - NBFC

Mr. Dharmen shah Vice President - Institutional Equity

Mr. B.S. Shashidhar Head - IAIFL and General Insurance

Mr. Jaideep Anand Senior Vice President - Institutional Sales & Dealing

Mr. C. Diwakar Chief Information Officer (CIO)

Mr. Bhuvnesh Khanna Head - Alternate Channels

Mr. K. Venkatesh Head – DistributionFig 2(a)Organization Chart of HSBC InvestDirect Ludhiana Branch SWOT ANALYSIS INTRODUCTION SWOT Analysis is a strategic planning tool used to evaluate the strengths, weaknesses, opportunities, and threats for a business entity. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favourable and unfavourable to achieving that objective. The technique is credited to Albert Humphrey, who led a research project at Stanford University in the 1960s and 1970s using data from fortune 500companies Strengths: Attributes of the organisation which are helpful to achieving the objective.

Weaknesses: Attributes of the organisation which are harmful to achieving the objective.

Opportunities: External conditions which are helpful to achieving the objective.

Threats: External conditions which could damage the business’s performance. SWOT ANALYSIS OF IL&FS INVESTSMART LTD. Strengths Customization: It understands the dreams, needs, aspirations, concerns and resources are unique and this is reflected in every move they do for the sake of individual customer. This is the greatest value it provide online trading products like Smart Invest and Smart Trade.

Expertise: IIL brings within the customers reach their institutional expertise and the ability to effectively combine an invaluable understanding of the financial markets, with an intention of building a long-term partnership.

One-stop-shop for all the investment needs: IIL gives all the types of services and products an individual investor can dream and think off. All the financial products and services are under one-roof.Unbiased and objective advice: The teams of expert investment advisors customize plans to suit the needs of investors. Extensive reach: IIL make sure that they are always accessible to customers through a host of mediums. A customer can contact them either through website or through their branches and channel partners of more than 300 offices across India. Brand image: IIL as such is a well known brand in industry. Competitive pricing: It charges less brokerage compared to its competitors. Weaknesses Expensive products: Some of the products like SmartTrade are quite expensive. An annual charge for SmartTrade is Rs. 3000. Tedious procedures: Tedious procedures and delays in processing the data and documents of new customers. Fund transfer: It has tie-ups with only 5 banks for online fund transfer, where as other competitors have more tie-ups. Attrition: High attrition rates in trainees category. Unattractive offers: Some offers of the company like Advance Subscription Plan with a deposit of Rs.50,000 to avail low brokerage charges. The low brokerage charges will be effective for the clients for a minimum turnover of Rs. 50 Crore p.a. Opportunities Indian economy seems to be out of recession. This is the right time for inventers to re-enter the market. The company should adopt some strategies to increase the business through existing clients. The increasing number of management graduates helps to get sales force at trainee levels at less salaries or commission basis. It reduces the salaries and commissions expenses of the company. The company can tie up with reputed B Schools for trainees. Huge untapped market in rural areas, Tier2 and Tier 3 cities and towns of India can be concentrated to increase the business. Many a banks are offering fund transfer services. The company can increase the tie-ups for fund transfers at attract customers of different banks. Threats Stiff competition from existing players in the market and there is also a threat of new entrants. It has lead to cut throat competition in terms of brokerage charges and exposure. Increasing awareness of mutual funds and ULIPs created by Domestic Institutional Investors has reduced the direct investment in to stock market to some extent. This automatically reduces the business of stock brokers. Changing economic scenario in India and changes in government policies will have great impact on the revenue of this company Many a investors burnt their figures during the bearish market conditions. It has turned many a trading accounts inoperative. FINANCIAL STATEMENT ANALYSIS Ratio Analysis: - A Ratio is a simple arithmetical expression of the relationship of one number to another. The Ratio Analysis is one of the most powerful tools of financial analysis. It is with the help of ratios that the financial statements can be analyse more clearly and decisions made from such analysis. Ratio Analysis is the process of establishing & interpreting various ratios for helping in making certain decisions. Liquidity Ratio: - Liquidity refers to the ability of a concern to meet its current obligations as and when these become due. The short-term obligations are met by realising amounts from current, floating or circulating assets. The current assets should either be liquid or near liquidity. These should be convertible into cash for paying obligations of short-term nature. Current Ratio: - The current ratio is the ratio of total current assets to current liabilities. The current ratio indicates the firm’s ability to pay its current liabilities. By using this ratio the extent of the soundness of current financial position of an undertaking and the degree of safety provided to the creditors. Greater the current ratio the larger amount of rupee available to the firm per rupee of current liabilities. Current Ratio = Current Assets Current Liabilities Table 2(a) Current Ratio 200920082007Current Ratio1.902.302.20 Fig 3(a) Current Ratio Interpretation: - From the above data it can be clearly interpreted that the current ratio for the march 2009 is less as compared to previous year. For the last year it was good and it was depicting that the short term financial position of the company was very good and for this year current ratio is good but not as per the previous standards. Quick Ratio: - Quick ratio also called as Acid test ratio. The quick ratio is a fairly stringent measure of liquidity. It is based on those current assets, which are highly liquid – inventories are excluded from the numerator of this ratio because inventories are deemed to be the least liquid component of current assets. Quick ratio can be calculated by dividing the quick assets by current liabilities. Quick ratio is a liquidity ratio or 1:1 ratio this ratio indicates liquid financial position of an enterprise. Quick Ratio = Quick Assets Current liabilities Table 3 (a):- Quick Ratio 200920082007Quick Ratio1.101.101.00 Fig 4(a):- Quick Ratio Interpretation: - From the above data we can see that the quick ratio of the bank is good and satisfying the thumb rule of 1:1 also. For the last two years it is same i.e. 1.10:1 that means bank is well enough to pay off its creditors. Return on Total Assets: - It refers to a ratio that measures a company's earnings before interest and taxes (EBIT) against its total net assets. The ratio is considered an indicator of how effectively a company is using its assets to generate earnings before contractual obligations must be paid. To calculate ROTA: = EBIT Total Net Assets Table 4(a):- Return on total asset 200920082007Return on Total Assets9.9012.0012.50 Fig 5(a) :- Return on total asset Interpretation: - It can be observed from the above data that return on total assets is decreasing from the previous years. However it doesn’t mean that net profit of the bank has been decreased it is basically due to increase in total assets which is much higher than the net profit. Gross Profit Ratio: - Gross profit ratio is defined as the difference between net sales and cost of good sold. This ratio shows the margin left after the meeting manufacturing costs. It measures the efficiency of production as well as pricing. To analyze the factors underlying the variation in gross profit margin the proportion of various element of cost to sales is studied. The gross profit ratio is computed by dividing gross profit by sales Gross profit Gross Profit Ratio = *100 Sales Table 5(a):- Gross profit Ratio 200920082007Gross Profit Ratio30.2030.8031.50 Fig 6(a):- Gross profit Ratio Interpretation: - G/p ratio of the company is ranging from 30-31 for the last three years and there is however a little bit change in the ratio for the last years. There is not any standard thumb rule to compare this ratio but as per market trend this percentage is good. Net Profit Ratio: - This ratio indicates the earning left for shareholder as a percentage of net sales. It measures the overall efficiency of production, administration, selling, financing pricing, and tax management. Jointly considered, the gross and net profit margin ratios provide a valuable understanding of the cost and profit structure of the firm and enable the analyst to identify the sources of business efficiency. Net profit ratio is computed by dividing net profit by sales. Net Profit Ratio = Net profit Sales Table 6(a):- Net profit Ratio 200920082007Net Profit Ratio6.605.506.10 Fig 7(a):- Net profit Ratio Interpretation: - Net profit ratio of the company has increased from the previous year and this shows the company is performing well and the main reason for increase in the net profit is increase in sales which is more than the increase in expenses of the company. Debt Equity Ratio: - It is calculated to measure the relative claims of outsiders and the owners against the firm’s assets. This ratio indicates the relationship between the external equities or the outsiders funds and the internal equities or the shareholders’ funds. Debt-Equity Ratio = Outsiders Funds Shareholders’ Funds Table 7(a) Debt Equity Ratio 200920082007Debt-Equity Ratio2.591.421.44 Graph 8(a) Debt Equity Ratio Interpretation: - Debt equity ratio of the company has been improved from the last year and this shows that the company has increased its debts but however more increase in debt will increase the risk from the equity shareholder’s point of view. Total Debt to Total Assets Ratio: - The ratio indicates the relationship between the total liabilities to outsiders to total assets of a firm and can be calculated as follows:- = Total Liabilities to Outsiders Total Assets Table 8(a):- Total debt to total asset 200920082007Total Debt to Total Assets ratio0.690.550.54 Fig 9(a):- Total debt to total asset Interpretation: - In above data we can see that the total debt to total assets for last three years is continuously increasing that Shows Company is now increasing the share of debts in assets. But on the other hand it is also enlarging the risk profile for the creditors. Trend Analysis: - An aspect of technical analysis that tries to predict the future movement of a stock based on past data. Trend analysis is based on the idea that what has happened in the past gives traders an idea of what will happen in the future. Trend analysis tries to predict a trend like a bull market run and ride that trend until data suggests a trend reversal (e.g. bull to bear market). Trend analysis is helpful because moving with trends, and not against them, will lead to profit for an investor. Table 9(a):-Trend Analysis of Net Sales: - YearsSalesPercentage2006-20074777.641002007-20085208.38109.022008-20096106.43127.81 Fig 10(a):-Trend Analysis of Net Sales Interpretation : -From the above data we can observe that the net sales of the company is increasing which may tends to increase in the net profit of the company and also will lead to increase in the net-worth. Table 10(a):- Trend Analysis of Expenses (Administrative Selling & Distribution): - YearsExpensesPercentage2006-2007720.321002007-2008792.62110.042008-2009809.66112.40 Fig 11(a):- Trend Analysis of Expenses (Administrative Selling & Distribution): Interpretation: - From the above data we can observe that the expenses from the last years are increasing but their percentage change is not as much as in the sales which will tend to increase in the Net profit. But increase in expenses from 2006-07 to 2007-08 is more than the net sales which may tend to decreases in profit. Table 11(a):-Trend Analysis of Net Profit YearsNet ProfitPercentage2006-2007291.121002007-2008286.5098.412008-2009401.52137.92 Fig 12(a):- Trends analysis of Net Profit Interpretation: - As from the above trend it can be analyzed that Net profit for the company is continuously increasing. But however increase N/P from 2006-07 to 2007-08 was decreased due to increase in expenses as compared to previous years. PART B Chapter 1 DEMAT ACCOUNT Meaning Demat Account Demat is the abbreviation of Demateriazation .A Demat account which is needed for buying or selling shares of a company or stocks and other equities in electronic form. Just as bank accounts hold money, Demat accounts hold equities. Earlier investors used to hold shares in paper format. Nowadays they are stored electronically in the Demat account. The document of shares that is in paper form is demated and is kept electronically in an account. Demat Account dematerializes paper-based physical stock shares. The dematerialized account is used to avoid holding physical shares The market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of upto 500 shares to be settled in physical for m, nobody wants physical shares any more as it is time taking procedure. So a Demat account is a must for trading and investing. As it is more convenient to trade electronically. Number of shares needed to open a Demat Account When one opens a Bank Account, one needs to have a minimum balance. But not so with a Demat account. A Demat account can be opened with no balance of shares And there is no minimum balance to be maintained either. One can have a zero cash balance even in one's Trading Account. Depository Participant (DP): Depository They are the custodians of securities. It helps for shorter settlement cycles and immediate transfer of title of securities. The main work of Depositor y is of keeping stocks of investors in electronics form. A depository is an organisation which holds securities like shares, debentures, bonds, government securities, mutual fund units etc. of the investors in electronic form at the request of the investors through a registered Depository Participant Services related to transactions in securities are also provided by the Depository There are two main depositories in India namely: NSDL (National Securities Depository Ltd) and CDSL (Central Depository Services Ltd). Depository Participant (DP) is an agent of the depository through which it interfaces with the investor and provides depository services to the investors. As per the requirements prescribed by SEBI the following can also be registered as DP; Public financial institutions, scheduled commercial banks, foreign banks operating in India with the approval of the Reserve Bank of India, state financial corporations, custodians, stock-brokers, clearing corporations /clearing houses, NBFCs and Registrar to an Issue or Share Transfer Agent. Online Trading Account When a share trader opens a De-mat Account in any Company an Online Trading Account is also opened at the same time, as Demat Account contains all the Shares of a customer similarly a Trading Account is maintained to keep cash which assist in buying of shares and other charges. The online mode of investing largely eliminates all the major difficulties of investing: It provides relevant of information, analysis and tools that enables the investors to take more informed decisions, virtually no paperwork involved as all transaction records are online and statements available in digital for m, as such an investor can invest anytime and from anywhere at his time and convenience. To begin investing online one needs to register as a member for an integrated 3-in-1 online trading account with any of the service providers. Annual Maintenance Charges are taken from the customers for maintaining their Demat Account, Trading Account and for providing other services. Every Broking Firm now specifies for opening of three accounts by their investor or the Share Trader. These are Trading account , which enables the trader to transact online. bank account , which is Internet enabled, for online money transfers through Internet and demat account where the shares are to be deposited. There are certain factors which are to be considered while opening an Online Trading Account, these are: Credibility and credentials: There should be the backing of a reputed bank or financial institution, which provides that additional safety Which investments can be made online: The investor has to find out whether he is allowed to invest in equity shares, mutual funds and IPOs fully through the online route or in only one of them? Quality of information and content: Ensure that one is getting the best of information, research support and tools, which is provided to investor or trader in an easy and reader friendly manner. Speed of order execution Are the share traders able to place their equity orders and receive quick order confirmations during peak hours? Choice of products to choose from: Some service providers provide a choice of products - from the basic (classic) account to more advanced trading platforms with live and streaming market information on equity markets. Safety: Check for the security features inbuilt into the system to ensure security in transaction. Customer care: to ensure whether the service provider have a dedicated customer care cell to take care of the queries and problem of the customers. Besides the above, many additional features offered may be looked into, like _ Ability to sell shares next day before receiving delivery, _ SMS alerts, _ Intraday trading in equities, etc based on the investing needs INTRADAY TRADING DELIVERYTypes of Trading Account FUTURES OPTIONS MARGINS There are to things one can do with the shares or stock or equities that one buys: Intraday Trading: The trader can sell the shares on the same day itself such buying and selling Of shares on the same days is called intraday trading. The brokerage of the intraday trading is always lower than the delivery trading Intraday trading is typically completed within a day that means you have sell the stocks that you have purchased that day before the even if you do not sell the stocks yourself, they will automatically square off before the closing of the exchange. One of the disadvantages of Intraday Trading is that the trader has to sell the shares within a day even when the share price is down. Delivery Trading: The trader can choose to keep some shares in their Demat account to be sold at a later date in their discretion. Such a trade would be called \"
Delivery Trading” The brokerage charged for delivery trades is usually more than that charged for Intraday trades. With Delivery Trading the trader can hold Shares till it reaches its expected price, as long term investment can always reap good dividend. The trader can also benefit from Split Shares, Bonus Shares and other benefits that the company announces for the share holders. T+2 rule It is a rule in Delivery Trading that once a delivery order is placed for shares with the broker or on one is Online Trading Account they are not immediately deposited in the Demat account of the trader. They will only be deposited on the 3rd business day. T in T+2 refers to trade or the day on which trade has taken place. But in HSBC, T+4 rule is applied. Futures Futures on individual stock were launched in November 2001. They are transferable specific delivery forward contracts .They are agreement between two counterparties to fix the terms of exchange or lock-in the price today of an exchange that will take place between them at some fixed future date. The future trading has effective safeguards against defaults in the form of clearing corporation guarantees for trades and the daily cash adjustment to the accounts of trading members, based on daily price change. Options Options are the contract that gives the holder the right to buy or sell securities at a predetermined price within or at the end of specific period. There can be options on commodities, currencies, securities, stock index, and individual stocks and even on futures. In order to acquire the right of option, the option buyer pays the option seller an option premium, which is the price paid for the right. CONSIDERATIONS FOR OPENING A DEMAT ACCOUNT: The following are the points that one should consider before choosing or opening a DEMAT Accounts are: Price: One may incur the following costs while operating a Demat Account. Though there are many charges but these matter the most: Demat Account Opening Charges

Demat Account Maintenance ChargesCharges for Buy/Sell Trades. Quality

Ease of Access of the Demat Account: It means to access Demat Account

Customer Service: This would play a role if one decides to buy/sell shares directly through the Depository Participant/DP or if one likes to keep shares in paper form.Benefits of Demat Account: It is safe and convenient way to hold securities or shares. It reduces paperwork that is involved in transfer of securities. Reduction in transaction cost while trading Nomination facility is also available. The transmission of securities/ shares is done by DP (Depository Participant) eliminating correspondence with companies. It enables holding investments in equity and debt instruments in a single account. ACCOUNT OPENING To avail the services of a depository an investor is required to open an account with a depository participant of any depository. PROCEDURE FOR OPENING AN ACCOUNT A demat account are opened on the same lines as that of a Bank Account. Prescribed Account opening forms are available with the DP, needs to be filled in. Standard Agreements are to be signed by the Client and the DP which details the rights and obligations of both parties The DP officials will make available the relevant account opening form (depending on whether the client is a retail investor or corporate client/clearing member) and specify the list of documents regarding references that should be submitted along with the form. It will also give a copy of the relevant agreement to be entered with the client, in duplicate.

The client will submit the duly filled in account opening form and client has to visit personally for opening the account in DP. The DP officials have to do in person verification and affix the “IN PERSON VERIFICATION” stamp on the account opening form. It should also furnish such documents regarding references, as specified by the DP, along with the account opening form. After executing the agreement the client has to forward it to the DP.

DP officials will verify that the account opening form is duly filled in. It will also verify the enclosed documents, if any. Incomplete forms will be forwarded to the client for rectification.

For Corporate Clients, the DP officials will verify if the board resolution for the authorized signatories is enclosed

In case the documents are not proper, the DP officials will reject the form and intimate the client of the same, stating the reasons for doing so.

If the form is in order; the DP officials will accept the same and affix the stamp “verified with original” on each and every proof after seeing the original proofs

After completion of all documentation, the DP officials will verify the pan from income tax website. And affix the stamp “PAN VERIFIED” with date and sign on the stamp.

The DP officials will enter the client details as mentioned in the account opening form in the DPM (software provided by NSDL & CDSL to the Participant) screen provided for the purpose. In case of NSDL A/c opening the SR. Assist will capture all the details in the DPM and record the client’s signature (on the form) as specimen for authorizations in the future. After entering client details in the system, a client account number will be generated by the DPM. The DP officials will enter this in details in the DPM captured by the SR. Assist and activate the account.

The DP officials are not allowed to give the demat a/c no to the clients until the a/c is activate, this is applicable for both NSDL & CDSL.

When the demat a/c is activated the DP officials have to send the client master and the copy of agreement between DP and client at the client’s addressThe account holder is called 'beneficial owner' in a depository system and the account is known as 'beneficiary account' DOCUMENTS SHOULD BE REQUIRED FOR DEMAT ACCOUNT Proof of Identity (POI): Passport Voter ID card Driving license PAN card with photograph Proof of Address (POA): Ration card Passport Voter ID card Driving License Bank passbook Verified copies of : its department Electricity bills (not 2 months old) Residence landline telephone bill (not more than 2 months old) Leave & license agreement/agreement to sell (duly attested) Self declaration by supreme court/high court judges, giving the new address in respect of their own accounts.

Passport-size photograph Copy of PAN card along with original PAN card for verification In case of NRI Foreign address and RBI approval date attested copy of RBi approval NRO-Indian address alonwith proofs Bank account details In case of joint holdings In case of joint holdings, POI and POA documents alongwith PAN card must be submitted in respect of all account holders. Original documents must be taken to the DP for verification. The DP will also provide a copy of the DP-Client agreement. Account opening form require the applicants to give the following details: (a) Name(s) of account holder(s) - The investor should ensure that the name is identical to that which appears on the certificate(s) to be dematerialized. In case of joint holdings, account may be opened in any one combination, irrespective of the sequence in which names are appearing on share certificates. Investors are advised to open their account in their fully expanded name, i.e., to spell to the first name as well as the middle name. This would obviate any doubts about the veracity of the information. (b) Mailing and communication address(es) - The veracity of the applicant's address is determined through the documents submitted for verification like ration card, passport, voter ID, PAN card driving license, bank passbook, etc. For NRI accounts, proof is required for both addresses - that of the account holder as well as the constituted attorney. For corporate accounts, a copy of Memorandum of Association, Articles of Association, Board resolution permitting opening of account, the registered address of the company have to be furnished. (c) Details of guardian in case account holder is a minor Only a guardian can open a depository account for a minor. The guardian is required to sign the application form, and details of his name and address need to be given in addition to the details of the minor. (d) Details of bank account Details of bank account of the account holder, including the nine digit code number of the bank and branch appearing on the MICR cheques issued by the bank have to be filled in the application form. Companies use this information for printing them on dividend/interest warrants etc. (e) Nomination declaration - A beneficial owner can make a nomination of his account in favour of any person by filing the nomination form with his DP. Such nomination is considered to be conclusive evidence of the account holder'(s) disposition in respect of all the securities in the account for which the nomination is made. The demat account cannot be operated on \"
either or survivor\"
basis like the bank account. In case of the joint account for the beneficial owners, all the joint holders have to sign the account opening form. The investor will submit to his DP the duly filled in account opening form & DP-client agreement along with the documents. On successful opening of the account, the DP will give: Client Id - an eight digit number to be used along with DP Id for any future transactions.

Delivery Instruction slip book

A copy of the report listing the client details captured in the DPM database to the client. The report will be generated by the DPM.Services provided by Depository system Dematerialization (usually known as demat) is converting physical certificates to electronic form

Rematerialisation, known as remat, is reverse of demat, i.e. getting physical certificates from the electronic securities

Transfer of securities, change of beneficial ownership

Settlement of trades done on exchange connected to the Depository

Pledge / Hypothecation of demat shares, viz. Loan against shares

Electronic credit in public offering of the Companies

Non - Cash corporate benefits, viz. Bonus / Rights – direct into electronic form

Depository restrict the risk of fraudBuying and Selling of Dematerialization 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 investor’s 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 broker’s account. Such instruction should reach the DP’s office at least 24 hours before the pay-in as otherwise DP will accept the instruction only at the investor’srisk. NEED OF THE STUDY The need of the study arises because of the reason that a trainee must understand the company, its achievements and tasks, products and services and also to collect information about its competitors, its products and services offered. So that, after understanding and collecting information about the organization and its competitors, a trainee will be able to work well for the organization. From the study I have learned very much, about the company as well as the strategy of the customers, which helps me a lot at my working days. Chapter2 Review Of Literature Review of Literature This chapter deals with the empirical work done at National and international level by various management scholars in the area. A literature review is a body of text that aim to review the critical point of current knowledge on a particular topic .Its ultimate goal is to bring the reader up to date with current literature on the topic and forms the basis for another goal such as the justification for future area of research. Shah (2009) examined in his book “emergence of securities depositories in India”. Acc. to him Dematerialization of securities has ended the days of bad deliveries, payment delays, paper movement and slower settlement.

Sofat and Hiro (2009) revealed that the customer’s satisfaction level from their share brokers. It was identify the customers expectations and to improve the quality of working of various DP’s.It was found from the study that LSE securities is a new star in DP market.

Arora, Singh & jain(2009) in their research “Exploring customer preference for mutual fund” has remarked that Past performance, core product features, expense ratio, risk-return trade off and liquidity are the five most important factors in a mutual fund. Hence investor prefer benefit for the cost given, flexible return, additional facilities, proper performance delivery, service quality and focus of service provided beside the core product facilities offered. A prudent product design, by adding the features expected by the investors that are spelt out in this research will make the mutual fund scheme more attractive to the investors.

Manjunatha (2009) in his study titled “Risk-Return Analysis of BSE Sensex Companies” analyzed that the study of the relationship between risks & returns is required for the investment in securities.There is direct relationship between returns & Beta.It shows Investment in Equity market presupposes the existence of risk for which higher returns are expected. Further, investors in equities & market Index expect higher returns than risk-free returns in the long-run.

Kumar (2009) in his study titled “Do Investors Behave Rationally in Stock Markets- A Behavioral Finance Perspective” remarked that A new perspective came into existence which is referred to Behavioral Finance that is an explanation of the various Puzzles of Finance and these Puzzles are : Stock Price, Under- & Overreactions, Excessive trading & the gender puzzle, financial hypes & panic, the Equity premium Puzzle & the winner/loser Puzzle. This perspective based on the alternative notion that Investors, or at least significant majority of them are subject to Behavioral biases that mean their financial decisions can be less than fully rational.Confidence amongst Investors as a whole is the key factor in determining how market behaves.

Aggarwal & Nayak (2009) in their study titled “A Study of Investors’ expected rate of return on their Investment” analyzed that In particular, this study aims at understanding & interpreting the behavior of working employees of Private & Public sector on their Investment decisions. The study shows how an Investment is chosen on the basis of expected rate of return gets affected by demographic variables, which helps to advise the clients better. The result shows that 68% of the Investors reveal that maximum Investors are likely to invest in Stock market & Mutual fund. The data suggests people those mostly invest in the market are Service class Investors who don’t have enough time to keep continuous watch on the market Fluctuation; they need regular assistance from their relationship manager who is assigned to them.Prasad (2009) in his study on “ULIP- The Tasters Perception on the Mixed Bag of Fruits” concluded that Majority of investors prefer insurance as an investment for mitigating the future risk. They are interested in ULIPs as they offer fund o options and flexibility. The variables affecting the choice for ULIP products are correlated and they are fund management charges, reliability of insurer, insurance coverage charges. Demographic factors also have significant impact over the level of investment in ULIPs. Also, agents are the most preferred channels of distribution of insurance policies. Jha (2009) in his article “ELSS – Save tax and create wealth” has remarked that Insurance scheme seeks to build a diversified portfolio comprising of stocks of companies with strong fundamental that is available. It tries to develop a portfolio wherein stock is selected on the basis of intrinsic value of the company. The best way to select the ELSS is through systematic investment plan. Choudhary (2008) in his study titled “ The Components of Investments Performance of Fund Managers: Evidences from Indian Capital Market” remarked that The Investment Performance of the Investment Managers can be judged on the various components such as Market Timing, Stock Selection, Risk Bearing & Diversification.This shows that Investment managers’ stock selection, risk bearing & diversification performance was not affected by choice of Benchmark Indices but market timing performance was quite sensitive to choice of market proxies.

Sinha (2008) in his study titled “Human Behavior & Investments” found that People’s emotions, biases and misadjustments affect their Investment decisions most even if it is assumed that human beings are rational.Most Financial theories are based on the idea that everyone takes careful account of all available information before making Investment decisions.Kumar (2008) in his article “Bancassurance in India: Issues & Implications” has remarked that With the opening up of insurance sector and so many players entering in the insurance industry it is required by the insurance company to come up with well established infrastructure facilities with good call centre service to attract and provide information to customers regarding different good policies and their premium pay scheme.The size of country, a diverse set of people combined with problems of connectivity in the rural areas, Makes insurance selling in India is a very difficult task. Life insurance companies require good distribution strength and tremendous man power to reach out such a huge customer base. Dala (2008) gives overview on the Dematerialization costs, insurance and other issues. She has founded that although high dematerialization costs may have retarded the growth of India investor population, things are beginning to change. Acc. to her opinion it is now p to Govt. to encourage the investors and DP's the market manipulators.Fischer (2007) in his study titled “Do Investors in Structured products act rationally” analyzed the strategies Individual Investors pursue when purchasing structured products. However, a considerable part shows Inconsistent strategies.Higher Risk attitude & Investment activity are connected with this Irrational Behaviour. Financial advice has a positive effect on Investment strategies of Individual Investors. Gupta (2006) the requirement of having a PAN has been made mandatory by the Securities and Exchange Board of India .In accordance with SEBI guidelines, Depositories NSDL and CSDL requirements state that PAN card is now compulsory documents for all categories of demat account holders.If the account holders fails to produce the PAN Card within the stipulated period of six months DP’s will freeze the account.

Oommen (2004) this article has discussed about NSDL’s success in depository services.Today all custodian operating in India .Major stock exchanges,brokers,institutional and retail investors are extensively using the infrasture and more than 99% of settlements are taking place in dematerialized form.

Gupta and jain (2003) in a paper on ‘India Securities Depository System:What has gone wrong?’ stated that unknowingly and unintentionly,the share depository system is adversely affecting millions of small Investors and also hurting the equity markets growth by causing such investors to gradually withdraw from the market. This paper attempts to explain how this has come about and what corrective action is needed.

Dash (2001), his paper titled ‘Basics Of investment’ he discusses The basic of investment and need for investment. Investment benefits both economy and the society. It is an outgrowth of economic development and the maturation of modern capitalism. For the economy as a whole, aggregate investment sanctioned in the current period is a major factor in determining aggregate demand and, hence, the level of employment. In the long term, current investment determines theeconomy’s futureproductive capacity and, ultimately, a growth in the standard of living. By increasing personal wealth, investing can contribute to higher overall economic growth and prosperity.

Nagpal (2000) in his paper titled “Psychology of Investments and Investor’s Preferences” founded that Every individual investor must follow three principles of investing.Using a long-term investing approach, following the right strategy to maximize the return on investment and proper allocation of investible funds. While applying these three principles, an individual investor has to confront his/her demographics, lifestyle and investment psychology. The knowledge of all these aspects is imperative for all progressive investors, researchers, financial consultants, academicians, students and the marketer of the financial products.

Rao(2000) in his white paper on Dematerialization defined that Dematerialization as a process by which company through the depository takes share certificates of shareholders participants credits equal number of share to account holder as electronic holding. The article explains the step by step process involved in depository systems with particular reference to Dematerialization process. Depository in an organization where the securities of an investor are held in electronic form through the medium of DP’s.It enables surrender and withdrawal of securities to and from the depository through the process of dematerialization.

Sung & Hanna (1996) in their study titled “ Factors Related to Risk Tolerance”, analyzed that Education is also a factor that is thought to increase a person’s capacity to evaluate risks inherent to the Investment Process & therefore endow them with a higher financial risk tolerance.However, he derives a model that suggests an element of circularity in this argument, as the relative risk aversion of an Individual is shown to determine the rate of human capital acquisition.

Yoo (1994) in his study titled “Behavioral factors affecting Investment Decisions” found that The change in the risky asset holdings were not uniform. He found individuals to increase their investments in risky assets throughout their working life time, and decrease their risk exposure once they retire. While identifying the systematic patterns of investment behavior exhibited by individuals found age and expressed risk taking propensities to be inversely related with major shifts taking place at age 55 and beyond.Gap in the Research: - These all studies that have been used as a review of literature are showing some Gap in the researches. The very first Gap is that none of the research had been done with the problems faced by Demat Account holders.

No research has studied their Expectations towards their DP’s.

PAN is mandatory for the opening of Demat Account.

Loans are availed on DP’s.So, these all are the gaps for which this research study has been conducted by me. Objectives Objectives To find out the most preferred broking firm among the firms.

To understand the customers’ expectations from depository participants.

To understand the satisfaction level of the customers.

To find the choice of customer for improvement in DP services.Chapter 3 Research Methodology RESEARCH METHODOLOGY Research can be defined as logical and systematized application of the fundamental science to the general and overall question of study and scientific techniques which provide precise tools, specific procedures and technical, rather than philosophical means for getting and ordering the data prior to their logical and manipulations. Research methodology is a way to systematically solve the research problem .It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them Descriptive Research Design:- Descriptive Research studies are those, which are concerned with describing the characteristics of a particular individual, or of a group. In descriptive studies the researcher must be able to define clearly, what he wants to measure and must find adequate methods for measuring it along with a clear cut definition of ‘population’ he wants to study. Size of sample-100 Area of research study-Ludhiana (Ferozegandhi market) Sampling procedure- Convenience sampling Convenience sampling (sometimes known as grab or opportunity sampling) is a type of non-probability sampling which involves the sample being drawn from that part of the population which is close to hand. That is, a sample population selected because it is readily available and convenient. The researcher using such a sample cannot scientifically make generalizations about the total population from this sample because it would not be representative enough. METHOD FOR DATA COLLECTION Primary Data - The primary data are those, which are collected a fresh and for the first time, and thus happened to be original in character. We can obtain primary data either through observation or through direct communication with respondent in one form or another or through personal interview Procedure of data collection- Survey Tools for data collection- Questionnaires Secondary Data- The secondary data on the other hand, are those which have already been collected by someone else and which have already been passed through the statistical processes. When the researcher utilizes secondary data then he has to look into various sources from where he can obtain them. For e.g. Books, magazine, newspaper, Internet, publications and reports. In the present study I have made use of secondary data collected from their website and from their records.Data has been collected from secondary source. The secondary data as it has always been important for the completion of any report provides a reliable, suitable, adequate and specific knowledge. Chapter 4 DATA ANALYSIS AND INTERPRETATION Table4.1 Number of Demat Account holder OptionNo. of responsesPercentageYes100100No00 Fig.4.1 Number of Demat Account holder Analysis and Interpretation: Almost all the peoples are having demat account so we can say that demat account are quite popular now a days. The another reason may be is that because of the population which is chosen for the research. Table 4.2 Demat Account in Different companies OpinionNumber of ResponsesPercentageHSBC2828%LSE3232%KRAVY1313%Others2727%Total100100% Fig.4.2 Demat Account in Different companies Analysis and Interpretation: As shown in the above graph that LSE is more popular in Ludhiana. The reason may behind that it is older Stock Exchange in Ludhiana. HSBC is providing more facilities and competitive charges. But it is not very popular to market because as it is new to the market. Table4.3 Source of information about the above company OPTIONNO.OF RESPONSESPECENTAGET.V.77%NEWSPAPER2828%PERSONAL CONTACT3535%BROKER/AGENT3030%Total100100%. Fig 4.3 Source of information about the above company Analysis and Interpretation: As it clear from the above table that most of the people preferring the personal contact because of the convenience and friendly advice. Therefore personal contact scoring 35% for the source of information. After personal contact people prefer broker and agents which constitute 30%for the source of information. Table 4.4 The occupation of investors OPTIONNo of ResponsesPercentageBUSINESS4444%GOVT3131%STUDENT1414%HOME MAKER1111%Total100100%Fig.4.4 The occupation of investors Analysis and Interpretation: It is interpreted from the graph that most of the investors are from the business class as it is 44%are belong to business class.About 31%investors are the govt. employee. And about 11% are the homemaker, It may because of less knowledge of trading. Table4.5 Preference of Mode of Trade OptionNo of ResponsesPercentageOnline4444%Offline5656%Total100100%Fig.4.5 Preference of Mode of Trade Analysis and Interpretation: As we know that the online trading is more convenient and it provide more facility and less brokerage charges. After that more of the people prefer offline trading.The reason behind that may be lack of knowledge or we can say that most of the traders are less techno-free. Table4.6.The frequency of trading OptionNo of ResponsesPercentageDaily 2929%Weekly4141%Monthly 2525%Yearly55%Total100100% Fig.4.6.The frequency of trading Analysis and Interpretation: From the above it is shown that most of the individual who are investing in the market in weekly basis. It is clear from the graph that 41% are trading on the weekly basis. And a few are investing on the yearly basis, it may be because of they have extra money to invest or they want high risk and high profit. Table4.7 Rank the preference while opening a demat account OptionNo of responsesMeanBrokerage3753.75Opening Charges3903.90Customer service1501.50Security3153.15Convenient2552.55

Preferance while opening a demat account

Fig.4.7 Rank the preference while opening a demat accountAnaysis and Interpretation: Above graph and table shows the factor that is most considered by the investors while opening the demat account is opening charges and after that another factor which is considered by the investors is the brokerage charges.Table4.8. The problem faced after opening an Account OpinionNumber of responsesPercentageYes7272%No1818%Total100100% Fig.4.8 The problem faced after opening an Account Analysis and Interpretation: It is clear from the above table that most of the demat account holders are facing the different types of problems. Therefore, 72% people are facing the problem of different type after opening the demat account. Only 18% demat account holders are said that they are not facing any problem, they may not be an active traders. Table4.9 The Problems faced by you while holding the Demat OptionsNo of responsesPercentageLog in problem4530%Difficulty in Operating account3423%Delay in order execution3222%Incorrect Entry of trade orders2316%Lack of proper customer Service139% Fig.4.9 The Problems faced by you while holding the Demat Interpretation:As seen in above maximum respondents are facing the log in problem followed by difficulty in operating and delay in order. Table 4.10. Highly satisfied+2satisfied+1Neutral0Dissatisfied-1 Highly Dissatisfied-2Total MeanOnline Facility 1530 19 19 9 0 11-11 14-28100.10Brokerage 2958 11 11 490 7 -14 4-8470.47Customercare 2550 1919 440 7 -7 5-10520.52Research Analyst 3162 1616 450 5 -5 3 -6 670.67 The satisfaction level with services provided by your DP’s Fig.4.10 The satisfaction level with services provided by your DP’s 171450-407670 Analysis and Interpretation: It is analyzed that most of respondents satisfied by the research facility provided to them.After that the second factor on which the respondents are satisfied is the customer care and most of the respondents are not satisfied with online facilities due to lack of knowledge regarding online trading. Table 11 The loan availed against your DP OptionNo of responsesPercentageYes8686%No1414% 57150top Fig 4.11 The loan availed against your DP Interpretation: It can be easily analysed from the graph that almost all investors are getting the facility of loan against their DP’s. So we can say that almost every firm is providing this loan facility. Table4.12 Factor considered by investors while selecting a particular DP OptionNo of responsesPercentageConvenience2626%Safety1818%min.processing time1414%Better analysts2929%Less maintenance2323%Total100100 left281940 Fig.4.12 Factor considered by investors while selecting a particular DP Analysis and Interpretation:As shown in above graph, most of the respondents prefer better Analystic factor is first parameter for selecting their depository participant and then they consider convenience factor more while others get minimum percentage. Chapter 5 Findings And Suggestions Findings LSE securities have done the wonders in just 5 years and they have a very good customer base. Actually it is only because of LSESL, which created a shock wave among the others players and customers are satisfied with DP’ services.

HSBC is new to market and it is also growing with great speed.

It is found from the analysis that dematerialization of the securities is the most favorable among respondents.

It is found from the analysis that almost all respondents have rated their DP services as either good or average.

It is found from the analysis that 70% of the respondents want to remain with their existing DP and only very few want to shift to a new DP.

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