Report of Student Internship Program

A
A
S
STUDY TUDY
ON ON

I
INVESTMENT NVESTMENT
P
PATTERN ATTERN
OF OF

P
PEOPLE EOPLE
(A Case Study on SHCIL) (A Case Study on SHCIL)
Report prepared by
in
Stock Holding Corporation of India Limited
J. C. Road Branch
Bangalore
For the Partial fulfillment of completion of the
Course Student Internship Program in
!erm " # of P$P (P$%& 'atch ())* " ())+)
Post Graduate Diploma in Management:
2005-07
CONTENTS
Page No.
,-ecuti.e Summary i
Chapter !
Introd"ction #
/0/ %efinition and 1.er.ie2 (
/0( Problem Identification (
/03 1b4ecti.e of the study (
Chapter #
Ind"$tr% Profile &
(0/ Industry o.er.ie2 5
(0( In.estment 6
(03 Capital mar7et and depository ()
Chapter &
Compan% Profile &!
30/'asic facts about SHCIL 3(
30( Ser.ice profile of SHCIL 3*
303 Product profile of SHCIL 58
Chapter ' (

(
)ata *nal%$i$ + Interpretation ,!
50/&ethodology 6/
50( %ata Analysis 6(
50(0/ Analy9e in.estors: preference on in.estment 6(
50(0( Comparison bet2een the in.estors: in.estment
preference in 'angalore and 'hubbanes2ar
+)
Chapter -
S"gge$tion$ and Limitation .#
*0/Findings +3
*0( Suggestion +5
*03 Limitation +*
Chapter ,
Learning O"tcome$ ..
60/1n in.estment a.enues ++
60( 1n %P Ser.ices ++
Chapter .
Reference/ and Bi0liograph% .1
+0/Article +8
+0('oo7s +8
+03 ;ebsites +8
Chapter 1
*nne2"re 13
<0/=uestionnaire </

3
E4EC5TI6E S577*R8
!his pro4ect has been done in Stoc7 Holding Corporation of India Ltd0
(SHCIL)> 2hich is one of the India:s ma4or depository participants0 Apart from
the regular acti.ity of a %P> SHCIL pro.ides a range of products to its client for
in.estment0 !he pro4ect is designed 7eeping importance of the in.estment
pattern of people and the popularity of the .arious products offered at SHCIL for
in.estment0
!his study deals 2ith .arious in.estment a.enues li7e e?uity> bonds>
debentures> ban7 deposits> insurance> mutual funds etc0 and the ris7 in.ol.ed in
it0 Apart from this> it also gi.es emphasis on the depository and .arious
functions of depository participants0
!his study also consists of the in.estment pattern of people 2ho reside in
an economically de.eloped area @ economically de.eloping area and ho2 the
in.estment pattern of people .aries according to their social classes li7e age>
education> income etc0 For this study I ha.e ta7en 'angalore as an
economically de.eloped area and 'hubanes2ar as an economically de.eloping
area0 In 'angalore> people are generally prefer to ta7e ris7 in in.estment and
in.est in such a.enues 2here the return is more but in 'hubanes2ar the
scenario is contradictory to 'angalore> 2here people are more conser.ati.e and
in.esting more in 'an7 %eposits> Postal %eposits etc0 Li7e that> the middle age
group people are in.esting more in Insurance> ,?uity and &utual Funds> 2here
as the old age group people prefer to in.est in R'I 'onds> 'an7 %eposits etc0

5
And among SHCIL:s product> in.estor are gi.ing more preference to
AStoc7 %irect: rather than any other of its products0 'ut AR'I 'onds: is the more
preferred product among older age group in.estors0 As SHCIL is one of the
ma4or %P in India> <* per cent of its client are dealing 2ith demat transaction
only and merely /* per cent of its client in.ested in other products0 Presently
SHCIL has been introducing ne2 .alue added ser.ice and products for
attracting ne2 in.estors0

*


Introd"ction
/0/ %efinition and 1.er.ie2
/0( Problem identification
/03 1b4ecti.e of the study

P*RT ' I
/
!.! Introd"ction/
!he money you earn is partly spent and the rest sa.ed for meeting future
e-penses0 Instead of 7eeping the sa.ings idle you may li7e to use sa.ings in
order to get return on it in the future> 2hich is 7no2n as Ain.estment:0 !here are
.arious in.estment a.enues such as ,?uity> 'onds> Insurance> 'an7 %eposit
etc0 A Portfolio is a combination of different in.estment assets mi-ed and
matched for the purpose of achie.ing an in.estorBs goal0 !here are .arious
factors 2hich affects in.estors: portfolio such as annual income> go.ernment
policy> natural calamities> economical changes etc
!.# Pro0lem identification/
Analy9e the in.estment pattern of people and the popularity of different
products (Fund In.est> R'I 'onds> Stoc7 %irect> Insure) pro.ided by SHCIL for
in.estment0
!.& O09ecti:e of the $t"d%/
!o study the in.estment pattern of people0
!o study the in.estment decisions of different social class people (in term
of age group> education> income le.el etc0)
!o analy9e the in.estment pattern of people 2ho reside in an
economically de.eloped area and economically de.eloping area0
!o study the difference bet2een .arious in.estment options offered at
SHCIL0
!o study the popularity of .arious products offered by SHCIL0
And> to study the role of SHCIL as a depository participant0

(

3


Ind"$tr% Profile
(0/ Industry 1.er.ie2
(0( In.estment
(03 Capital &ar7et and %epository

P*RT ' II
5
#.! Ind"$tr% O:er:ie;/
$lobali9ation of the financial mar7et has led to a manifold increase
in in.estment0 Ce2 mar7ets ha.e been openedD ne2 instruments ha.e been
de.eloped and ne2 ser.ices ha.e been launched0 Stoc7 Holding Corporation of
India Ltd0 (SHCIL)> the premier custodian of Indian capital mar7et pro.iding
ser.ices of international standards> is geared up to reposition itself in the
changed scenario0 ;ith 2orld " acclaimed automation and a team of committed
professionals> SHCIL is confident of scaling ne2 heights0 Combining its financial
strengths and technical e-pertise to ser.e the clients better> 2here.er and
2hene.er it is needed> SHCIL en.isages acting as a partner one can trust0 !he
corporation has restructured and geared itself to ser.e the gro2ing needs of
indi.idual in.estors in the paperless en.ironment0 !he organi9ation in its
2illingness to pro.ide its stateEofEtheEart financial ser.ices in securities
industries to the .arious segments of the in.estors has e-panded itself to more
than hundred cities across the country0 SHCIL desires to gi.e in.estors the time
and attention in monitoring the performance of their securities consistently0 All
aimed at pro.iding the in.estor 2ith optimum financial gain0
India has a 2ell established capital mar7et mechanism 2here in
effecti.e and efficient transfer of money capital or financial resources from the
in.esting class to the entrepreneur class in the pri.ate and public sector of the
economy occurs0 Indian capital mar7et has a long history of organi9ed trading
2hich started 2ith the transaction in loan stoc7s of the ,ast India Company from
that time it has undergone drastic changes to meet the re?uirements of the
globali9ation0 !he Indian Capital &ar7et had been dormant in the +)Bs and <)Bs
has 2itnessed unprecedented boom during the recent years0 !here has been a
shift of household sa.ings from physical assets to financial assets> particularly
the ris7 bearing securities such as shares and debentures0 Capital mar7ets
structure has also undergone sea changes 2ith number of financial ser.ices

*
and ban7ing companies> pri.ate limited companies coming in to the scene
2hich made the competition in the mar7et stiffer0
!he Companies Act /<*)> introduced the concept of limited
liability to India> ser.ed to stimulate the acti.ity in the stoc7 mar7et0 From then
number of acts are passed to boost the re.olutionary change0 !he global capital
mar7et registered spectacular gro2th in the decade of /88)Bs 2hich had an
effect on the gro2th of Indian mar7et0 !he 2orld mar7et capitali9ation gre2 at
an a.erage annual rate of /6F during the decade> it gre2 from about GS H 803
trillion in /88) to about GS H 36 trillion in ())) but fell to about GS H (< trillion
by ())/0 !he turno.er on all mar7ets ta7en together has gro2n nearly /8 times
from GS H *0* trillion in /88) to GS H 5< trillion in ())) before depleting to about
GS H 5( trillion in ())/0 !he turno.er in de.eloped mar7ets has> ho2e.er>
gro2n more sharply than that in emerging mar7ets0 !he GS alone accounted for
about +)F of 2orld 2ide turno.er in ())/0 %espite ha.ing a large number of
companies listed in its stoc7 e-changes> India accounted for a merger of *8F in
())/ do2n from /0)6F in ()))0
!he stoc7 mar7ets 2orld 2ide has gro2n in si9e as 2ell as depth
o.er last one decade0 %uring the decade /88)E()))> the 2orld mar7et
capitali9ationI$%P ratio more than doubled from */F to /()F0 #alue traded
$%P rose from (8F to /)3F and turn o.er ratio shot up from 5<F to <8F0 !he
combined mar7et capitali9ation of a select (( emerging economies increased
from GS H 338 billion in /88) to GS H (0( trillion in ()))0 !he a.erage mar7et
capitali9ation increased from 306F to +F> annual .alue of shares traded
increased from H /<) billion to H (0( trillion and $%P increased from /60+F to
5*0*F0
For India the total capitali9ation gre2 from H 3<>*6+ million at the
end of /88) to H //)>386 million at the end of ())/0 !urnEo.er of stoc7s
increased from H (/>/8< million in /88) to H (58>(8< million in ())/0 &ar7et
capitali9ation as a percentage of $%P gre2 from /(0(F in /888 to 3(05F in

6
())/ 2hile turno.er ratio 2ent up from 6*08F in /888 to /8/05F in ()))0 !he
number of listed companies in India 2as *>8+* as at end of ())/0 !here are
.ery fe2 countries> 2hich ha.e higher turno.er ratio than India0 Standard and
Poor (SP) ran7ed India> (*
th
in terms of mar7et capitali9ation> /*
th
in terms of
total .alue traded in stoc7Ee-changes and 6
th
in terms of turnEo.er ratio0
#.# In:e$tment/
In.estment means buying securities or other monetary or paper
(financial) assets in the money mar7ets or capital mar7ets> or in fairly li?uid real
assets> such as gold as an in.estment> real estate> or collectibles0 #aluation is
the method for assessing 2hether a potential in.estment is 2orth its price0
!ypes of financial in.estments include shares or other e?uity in.estment> and
bonds (including bonds denominated in foreign currencies)0 !hese in.estments
assets are then e-pected to pro.ide income or positi.e future cash flo2s> but
may increase or decrease in .alue gi.ing the in.estor capital gains or losses
#.#.! Characteri$tic$ of In:e$tment/
<i= Intere$t <ret"rn=
;hen 2e borro2 money> 2e are e-pected to pay for using it " this is
7no2n as Interest0 Interest is an amount charged to the borro2er for the
pri.ilege of using the lender:s money0 Interest is usually calculated as a
percentage of the principal balance (the amount of money borro2ed)0 !he
percentage rate may be fi-ed for the life of the loan or it may be .ariable>
depending on the terms of the loan0
;hat factors determine interest ratesJ

+
!he factors 2hich go.ern these interest rates are mostly economy related
and are commonly referred to as macroeconomic factors0 Some of these factors
are
%emand for money
Le.el of $o.ernment borro2ings
Supply of money
Inflation rate
<ii= Ri$k
Ris7 may relate to loss of capital> delay in repayment of capital nonE
payment of interest> or .ariability of return0 ;hile some in.estment such as
go.ernment securities and ban7 deposits are almost 2ithout ris7> others are
more ris7y0 !he ris7 of an in.estment is determined by the in.estment:s maturity
period> repayment capacity> nature of return commitment> and so on0
<iii= Safet%
,.ery in.estor e-pects to get bac7 the initial capacity on maturity 2ithout
loss and 2ithout delay0 In.estment safety is gauged through the reputation
established by the borro2er of the fund0 A highly reputed and successful
corporate entity assures in.estors of their initial capital0
<i:= Li>"idit%
An in.estment 2hich is easily saleable or mar7etable 2ithout loss of
money and 2ithout loss of time is said to be possess the characteristic of
li?uidity0 Some in.estments such as deposit in un7no2n corporate entities> ban7
deposit> post office deposit> national sa.ing certificate> and so on are not
mar7etable0
An investor tends to be prefer maximization of expected return,
minimization of risk, safety of fund, and liquidity of investment

<

The three golden r"le$ for all in:e$tor$ are
In.est early
In.est regularly
In.est for long term and not short term
One need$ to in:e$t for
,arn return on your idle resources
$enerate a specified sum of money for a specific goal in life
&a7e a pro.ision for an uncertain future
!o meet the cost of inflation
#.#.# T%pe$ of In:e$tment/
<i= Short term In:e$tment' It is an in.estment made by the in.estor for .ery
short period of time i0e0 for one to three years0 Such as in.estment in ban7>
money mar7et> li?uid funds etc0
<ii= Long Term In:e$tment " ;hen in.estor in.ests money for more than three
to fi.e years then it is called long term in.estment0 Such as in.estment in bonds>
mutual funds> fi-ed ban7 deposits> PPF> insurance etc
6ario"$ option$ a:aila0le for in:e$tment
Physical assets
o Real estate
o $oldI4e2elry
o Commodities
o Assets etc0

8
Financial assets
o fi-ed deposits 2ith ban7s
o Small sa.ing instruments 2ith post offices
o Insurance Ipro.ident Ipension fund etc0
Securities mar7et
o Share
o 'onds
o %ebentures
o &utual fund
o %eri.ati.es etc0
#.#.& In:e$tor/
In.estor is a person or an organi9ation that in.est money in .arious
in.estment sources for specific ob4ecti.e0 Attitude of in.estment is different in
each alternati.e0 ,0g0 financial mar7et ha.e different attitude to2ards ris7 and
return0 Some in.estors are ris7 a.ers> 2hile some ha.e an affinity of ris70 !he
ris7 bearing capacity of in.estor is a function of personal> economical>
en.ironment> and situational factors such as income> family si9e> e-penditure
pattern> and age0 A person 2ith higher income is assumed to ha.e higher ris7E
bearing capacity0 !hus in.estor can be classified as ris7 s7iers> ris7 a.oiders> or
ris7 bearers
Before making an% in:e$tment? one m"$t en$"re to
1btain 2ritten documents e-plaining the in.estment
Read and understand such documents
#erify the legitimacy of the in.estment
Find out the costs and benefits associated 2ith the in.estment
Assess the ris7Ereturn profile of the in.estment

/)
Kno2 the li?uidity and safety aspects of the in.estment
Ascertain if it is appropriate for your specific goals
Compare these details 2ith other in.estment opportunities a.ailable
,-amine if it fits in 2ith other in.estments you are considering or you
ha.e already made
%eal only through an authori9ed intermediary
See7 all clarifications about the intermediary and the in.estment
,-plore the options a.ailable to you if something 2ere to go 2rong> and
then> if satisfied> ma7e the in.estment0

Portfolio
A Portfolio is a combination of different in.estment assets mi-ed and
matched for the purpose of achie.ing an in.estorBs goal0 Items that are
considered a part of your portfolio can include any financial asset you o2n> li7e
shares> debentures> bonds> mutual fund units etc0 and real assets li7e gold> art
and e.en real estate etc0 Ho2e.er> for most in.estors a portfolio has come to
signify an in.estment in financial instruments li7e shares> debentures> fi-ed
deposits> mutual fund units0
)i:er$ification
It is a ris7 management techni?ue that mi-es a 2ide .ariety of
in.estments 2ithin a portfolio0 It is designed to minimi9e the impact of any one
security on o.erall portfolio performance0 %i.ersification is possibly the best 2ay
to reduce the ris7 in a portfolio0
*d:antage$ of ha:ing a di:er$ified portfolio
A good in.estment portfolio is a mi- of a 2ide range of asset class0
%ifferent securities perform differently at any point of time0 So 2ith a mi- of
asset types> your entire portfolio does not suffer the impact of a decline of any

//
one security0 ;hen your stoc7s go do2n> you may still ha.e the stability of the
bonds in your portfolio0 !here ha.e been all sorts of academic studies and
formulas that demonstrate 2hy di.ersification is important> but itBs really 4ust the
simple practice of Lnot putting all your eggs in one bas7et0L If you spread your
in.estments across .arious types of assets and mar7ets> youBll reduce the ris7
of your entire portfolio getting affected by the ad.erse returns of any single
asset class0
#.#.( In:e$tment *:en"e$/
In India> numbers of in.estment a.enues are a.ailable for the in.estors0
Some of them are mar7etable and li?uid 2hile others are nonEmar7etable and
some of them also highly ris7y 2hile others are almost ris7 less0 !he in.estor
has to choose proper a.enue among them> depending upon his specific need>
ris7 preference> and return e-pected
In:e$tment a:en"e$ can 0roadl% categorie$ "nder the follo;ing head$
/0 Corporate securities
,?uity shares Preference shares
%ebentureI'onds $%R:sIA%R:s
;arrants %eri.ati.es
(0 %eposit in ban7 and non ban7ing companies
30 Post office deposits and certificate
50 Life insurance policies
*0 Pro.ident fund schemes
60 $o.ernment and semiEgo.ernment securities
+0 &utual fund and schemes
<0 Real estate
<i= Corporate $ec"ritie$/

/(
(a) Equity share
!otal e?uity capital of a company is di.ided into e?ual units of small
denominations> each called a share0 For e-ample> in a company the total e?uity
capital of Rs (>))>))>))) is di.ided into ()>))>))) units of Rs /) each0 ,ach
such unit of Rs /) is called a Ashare:0 !hus> the company then is said to ha.e
()> ))>))) e?uity shares of Rs /) each0 !he holders of such shares are
members of the company and ha.e .oting rights0 ;hen company ma7es profit
shareholder recei.es there share of the profit in form of di.idends0 In addition>
2hen company performs 2ell and the future e-pectation from the company is
.ery high> the price of the companies share goes up in the mar7et0
In.estor can in.est in shares either primary mar7et offerings or in the
secondary mar7et0
(b) Preference shares
Preference share as that part of share capital of the Company 2hich
en4oys preferential right as to (a) payment of di.idend at a fi-ed rate during the
life time of the CompanyD and (b) the return of capital on 2inding up of the
Company0 It is lie in bet2een pure e?uity and debt0 'ut preference shares
cannot be traded> unli7e e?uity shares> and are redeemed after a preEdecided
period0 Also> Preferential Shareholders do not ha.e .oting rights0 !hese are
issued to the public only after a public issue of ordinary shares0
Preference shares also get traded in the mar7et and gi.e li?uidity to
in.estor0 In.estor can opt for this type of in.estment 2hen their ris7 performance
is .ery lo20
(c) Debentures and Bonds
It is a fi-ed income (debt) instrument issued for a period of more than
one year 2ith the purpose of raising capital0 !he central or state go.ernment

/3
corporations and similar institutions sell bonds0 A bond is generally a promise to
repay the principal along 2ith a fi-ed rate of interest on a specified date> called
the &aturity %ate0
&any types of debenture and bonds ha.e been structured to suit
in.estors 2ith different time needs0 !hough ha.ing higher ris7 as compared to
ban7 fi-ed deposits> bonds and debentures do offer higher returns0 %ebenture
instruments re?uire scanning the mar7et and choosing specific securities that
2ill cater to in.estment ob4ecti.es of the in.estor0
(d) Depository Receipts (GDRs/ADRs)
$lobal depository receipts are the instrument in the form of a depository
receipts or certificate created by the o.erseas depository ban7 outside India and
issued to nonEresident in.estors against ordinary shares0 A $%R issued in
America> is an American %epositary Receipts0 As in.estors see7 to di.ersify
their e?uity holdings> the option of $%Rs and A%Rs is .ery lucrati.e> 2hile
in.esting in such securities> in.estors should identify the capitali9ation and ris7
characteri9es of the instrument and the companies: performance in the home
country0

(e) Warrants
A 2arrant is a certificate gi.ing its holder rights to purchase securities at
a stipulated price 2ithin a specified time limit0 !he 2arrants act as a .alue
addition because holder of the 2arrant has the right but not the obligation to
in.esting in e?uity at the indicated rate0 An option contract often sold 2ith
another security0 For instance> corporate bonds may be sold 2ith 2arrants to
buy common stoc7 of that corporation0 ;arrants are generally detachable0
1ptions generally ha.e li.es of up to one year0 !he ma4ority of options traded on
e-changes ha.e ma-imum maturity of nine months0 Longer dated options are
called ;arrants and are generally traded o.erEthe counter

/5
<ii= Sa:ing$ 0ank acco"nt ;ith commercial 0ank
'roadly spea7ing> sa.ings ban7 account> money mar7etIli?uid funds and
fi-ed deposits 2ith ban7s may be considered as shortEterm financial in.estment
options
Sa.ings 'an7 Account is often the first ban7ing product people use>
2hich offers lo2 interest (5FE*F p0a0)> ma7ing them only marginally better than
fi-ed deposits0
<iii= Bank fi2ed depo$it$
Fi-ed %eposits 2ith 'an7s are also referred to as term deposits0
&inimum in.estment period for ban7 F%s is 3) days0 Fi-ed %eposits in ban7s
are for those in.estors> 2ho ha.e lo2 ris7 appetite0 'an7 F%s is li7ely to be
lo2er than money mar7et fund returns0
<i:= Compan% fi2ed depo$it$
!hese are shortEterm (si- months) to mediumEterm (three to fi.e years)
borro2ings by companies at a fi-ed rate of interest 2hich is payable monthly>
?uarterly> semi annually or annually0 !hey can also be cumulati.e fi-ed deposits
2here the entire principal along 2ith the interest is paid at the end of the loan
period0 !he rate of interest .aries bet2een 6E8F per annum for company F%s0
!he interest recei.ed is after deduction of ta-es0
<:= Po$t Office Sa:ing$/
Post 1ffice &onthly Income Scheme is a lo2 ris7 sa.ing instrument>
2hich can be a.ailed through any Post 1ffice0 It pro.ides an interest rate of <F
per annum> 2hich is paid monthly0 &inimum amount> 2hich can be in.ested> is
Rs0 />)))IE and additional in.estment in multiples of Rs0 />)))IE0 &a-imum

/*
amount is Rs0 3>))>)))IE (if Single) or Rs0 6>))>)))IE(if held Mointly) during a
year0 It has a maturity period of 6 years0 A bonus of /)F is paid at the time of
maturity0 Premature 2ithdra2al is permitted if deposit is more than one year old0
A deduction of *F is le.ied from the principal amount if 2ithdra2n prematurely0
!he /)F bonus is also denied0
<:i= Life in$"rance policie$
Insurance companies offer many in.estment schemes to in.estors0
!hese schemes promote sa.ing and additionally pro.ide insurance co.er0 LIC is
the largest life insurance company in India0 Some of its schemes include life
policies> con.ertible 2hole life assurance policy> endo2ment assurance policy>
4ee.an Saathi> money bac7 policy etc0 Insurance policies> 2hile catering to the
ris7 compensation to be faced in the future by in.estor> also ha.e the ad.antage
of earning a reasonable interest on their in.estment insurance premiums0
<:ii= P"0lic Pro:ident @"nd/
A long term sa.ings instrument 2ith a maturity of /* years and interest
payable at <F per annum compounded annually0 A PPF account can be
opened through a nationali9ed ban7 at anytime during the year and is open all
through the year for depositing money0 !a- benefits can be a.ailed for the
amount in.ested and interest accrued is ta-Efree0 A 2ithdra2al is permissible
e.ery year from the se.enth financial year of the date of opening of the account
and the amount of 2ithdra2al 2ill be limited to *)F of the balance at credit at
the end of the 5th year immediately preceding the year in 2hich the amount is
2ithdra2n or at the end of the preceding year 2hiche.er is lo2er the amount of
loan if any0
<:iii= Ao:ernment and $emi'go:ernment $ec"ritie$

/6
It is a fi-ed income (debt) instrument issued for a period of more than one
year 2ith the purpose of raising capital0 !he central or state go.ernment>
corporations and similar institutions sell bonds0 A bond is generally a promise to
repay the principal along 2ith a fi-ed rate of interest on a specified date> called
the &aturity %ate0
!he go.ernment issues securities in the money mar7et and in the capital
mar7et0 &oney mar7et instruments are traded in ;holesale %ebt &ar7et (;%&)
trades and retail segments0 Instruments traded in the money mar7et are short
term instruments such as treasury bills and con.ertible bonds0
<i2= 7"t"al f"nd
!hese are funds operated by an in.estment company 2hich raises
money from the public and in.ests in a group of assets (shares> debentures
etc0)> in accordance 2ith a stated set of ob4ecti.es0 It is a substitute for those
2ho are unable to in.est directly in e?uities or debt because of resource> time or
7no2ledge constraints0 'enefits include professional money management>
buying in small amounts and di.ersification0
&utual fund units are issued and redeemed by the Fund &anagement
Company based on the fundBs net asset .alue (CA#)> 2hich is determined at the
end of each trading session0 CA# is calculated as the .alue of all the shares
held by the fund> minus e-penses> di.ided by the number of units issued0
&utual Funds are usually long term in.estment .ehicle though there some
categories of mutual funds> such as money mar7et mutual funds> 2hich are
short term instruments0 1n the basis of ob4ecti.e 2e can categories mutual
funds as e?uity fundsIgro2th funds> di.ersified funds> sector funds> inde- funds>
ta- sa.ing funds> debtIincome funds> li?uid fundsImoney mar7et funds> gift
funds> balanced funds0 And on the basis of fle-ibility 2e can categories them as
openEended funds> closeEended funds and inter.al funds0

/+
<2= Real E$tate
In.estment in real estate also made 2hen the e-pected returns are .ery
attracti.e0 'uying property is an e?ually strenuous in.estment decisions0 Real
estate in.estment is often lin7ed 2ith the future de.elopment plans of the
location0 At present in.estment in real assets is booming there are .arious
in.estment source are a.ailable for in.estment 2hich are directly or indirectly
in.esting real estate0
<2i= B"llion in:e$tment
!he bullion offers in.estment opportunity in the form of gold> sil.er> and
other metals> specific categories of metals are traded in the metal e-change0
!he bullion mar7et presents an opportunity for an in.estor by offering returns
and the end .alue of future0 It has been absurd that on se.eral occasions> 2hen
stoc7 mar7et failed> the gold mar7et pro.ided a return on in.estments0
#.#.- So"rce$ of $t"d% for in:e$tor$/
A loo7 out for ne2 in.estment opportunities helps in.estors to beat the
mar7et0 !here are many sources from 2hich in.estors can gather the re?uired
information0 Such asD
<i= @inancial in$tit"tion$
Corporate house> go.ernment bodies and mutual funds are the main
source of in.estment information0 &any of these enterprises ha.e their o2n
2ebsite and post in.estment related information on their 2ebsites0
<ii= @inancial market
Stoc7 e-change and regulated bodies also pro.ide useful information to
in.estor to ma7e there in.estment decisions0 ;ith respect to secondary mar7et>
the Securities and ,-change 'oard of India uses .arious modes to promote

/<
in.estors education and ta7es great effort to achie.e an in.estor friendly
secondary mar7et in India0 !he Reser.e 'an7 of India also pro.ide useful
information relating to the pre.ent interest rates and nonEban7ing financial
intermediaries that mobiles money through deposit schemes0
<iii= @inancial $er:ice intermediarie$
!hese are intermediaries 2ho promote securities among the public0
&any of these intermediaries are the agencies of specific instruments especially
ta- sa.ing instruments0 !hese intermediaries offer to share their commission
from there concerned organi9ation 2ith the indi.idual in.estor thus in.estor get
additional ad.antages 2hile in.esting through intermediaries0
<i:= 7edia
Press sources such as financial ne2s papers> financial maga9ine>
business ne2s channel> 2ebsites etc0 pro.ide information related to in.estment
to the public0 'esides information on securities> these sources also pro.ide
analysis of information and in certain instance suggest suitable in.estment
decisions to be made by in.estor
#.#., @"ndamental anal%$i$ of :ario"$ in:e$tment alternati:e$/
'efore in.esting in .arious in.estment alternati.es fundamental analysis
is .ery necessary0 A fundamental analysis belie.es that analy9ing the economy>
strength> management> production> financial status and other related information
2ill help to choose in.estment a.enues that 2ill outperform the mar7et and
pro.ide consistent gain to the in.estor
Fundamental analysis is the e-amination of the underlying forces that
affect the interests of the economy> industrial sectors> and companies0 It tries to
forecast the future mo.ement of capital mar7et using signals from the economy>

/8
industry> company0 Fundamental analysis re?uires an e-amination of the mar7et
from broader prospecti.e0 It also e-amines the economic en.ironment> industrial
performance> and company performance before ta7ing an in.estment decision0
<i= Economic *nal%$i$
!he economic analysis aims at determining if the economic climate is
conducti.e and is capable of encouraging the gro2th of business sector>
especially the capital mar7et0 ;hen the economy e-pands> most industry
groups and companies are e-pected to benefit and gro2 and 2hen the
economy declines> most sectors and companies usually face sur.i.al problems0
Hence> to predict scrip prices> an in.estor has to spend time e-ploring the
forces operating in the o.erall economy0 ,conomic analysis implies the
e-amination of $%P> go.ernment financing> go.ernment borro2ings> consumer
durable goods mar7et> nonEdurable goods and capital goods mar7et> sa.ing and
in.estment pattern> interest rates> inflation rates> ta- structure> foreign direct
in.estment> and money supply0
!he most used tools for performing economic analysis areD
$ross %omestic Product
&onetary policy and li?uidity
Inflation
Interest rate
International influences
Consumer beha.iors
Fiscal policy etc

<ii= Ind"$tr% *nal%$i$/
It is .ery important to see ho2 the industry to 2hich the company belongs
is faring0 Specifics li7e effect of $o.ernment policy> future demand of its

()
products etc0 need to be chec7ed0 At times prospects of an industry may
change drastically by any alterations in business en.ironment0 For instance>
de.aluation of rupee may brighten prospects of all e-port oriented companies0
In.estment analysts call this as Industry Analysis0 Companies producing similar
products are subset (form a part) of an IndustryISector0 For e-ample> Cational
Hydroelectric Po2er Company (CHPC) Ltd0> Cational !hermal Po2er Company
(C!PC) Ltd0> !ata Po2er Company (!PC) Ltd0 etc0 belong to the Po2er
SectorIIndustry of India0
!ools for industry analysis
Cross study of performance of the industry0
Industry performance o.er times
%ifferences in industry ris7
Prediction about mar7et beha.iors> and
Competition o.er the industry life cycle

<iii= Compan% *nal%$i$/
Company analysis in.ol.ed choice of in.estment opportunities 2ithin a
specific industry that consists of se.eral indi.idual companies0 Ho2 has the
company been faring o.er the past fe2 yearsJ See7 information on its current
operations> managerial capabilities> gro2th plans> its past performance .isENE.is
its competitors etc0
<i:= @inancial *nal%$i$/
If performance of an industry as 2ell as of the company seems good>
then chec7> if at the current price> the share is a good to buy or not0 For this>
loo7 at the financial performance of the company and certain 7ey financial

(/
parameters li7e ,arnings per Share (,PS)> PI, ratio> current si9e of e?uity etc0
for arri.ing at the estimated future price0 !his is termed as Financial Analysis0
For that you need to understand financial statements of a company i0e0 'alance
Sheet and Profit and Loss Account contained in the Annual Report of a
company0
#.& *0o"t Capital 7arket$ and )epo$itor%/
#.&.! *0o"t Capital 7arket/
!he function of the financial mar7et is to facilitate the transfer of funds
from surplus sectors (lenders) to deficit sectors (borro2ers)0 A financial mar7et
consists of in.estors or buyers of securities> borro2ers or sellers of securities>
intermediaries and regulatory bodies0 Indian financial system consists of money
mar7et and capital mar7et0
!he capital mar7et consists of primary and secondary mar7ets0 !he
primary mar7et deals 2ith the issue of ne2 instruments by the corporate sector
such as e?uity shares> preference shares and debt instruments0 !he secondary
mar7et or stoc7 e-change is a mar7et for trading and settlement of securities
that ha.e already been issued0 !he in.estors 2ill holding securities or sell
securities through registered bro7ersIsubEbro7ers of the stoc7 e-change0
!he introduction of CS, @ 'S, has increased the reach of capital mar7et
manifold 2hich in turn increased the number of in.estors participating in the
capital mar7et and thus creates the possibility of a bad deli.ery0 !he cost @ time
spend by the bro7ers for rectification of this bad deli.ery tends to be higher 2ith
the geographical spread of the clients0 !he increase in trade .olumes leads to
e-ponential rise in the bac7 office operation0 !he incon.enience faced by the
in.estors (in area that are far long @ a2ay from the main metros) in the
settlement of the trade also limits the opportunity for such in.estors in
participating in auction trading0

((
!his has made the in.estors as 2ell as bro7ers 2ary of Indian capital
mar7et0 !he erst2hile settlement system on Indian stoc7 e-changes 2as
inefficient and increased ris7> due to the time that elapsed before trades 2as
settled0 !he transfer 2as by physical mo.ement of papers0 !here had to be a
physical deli.ery of securities E a process fraught 2ith delays and resultant ris7s0
!he second aspect of the settlement related to transfer of shares in fa.or
of the purchaser by the company0 !he system of transfer of o2nership 2as
grossly inefficient as e.ery transfer in.ol.es physical mo.ement of paper
securities to the issuer for registration> 2ith the change of o2nership being
e.idenced by an endorsement on the security certificate0 In many cases the
process of transfer 2ould ta7e much longer than the t2o months stipulated in
the Companies Act and a significant proportion of transactions 2ould end up as
bad deli.ery due to faulty compliance of paper 2or70 !heft> forgery> mutilation of
certificates and other irregularities 2ere rampant0 In addition> the issuer had the
right to refuse the transfer of a security0 All this added to costs and delays in
settlement> restricted li?uidity and made in.estor grie.ance redress time
consuming and> at times> intractable0
!o ob.iate these problems> the %epositories Act> /886 2as passed0 It
pro.ides for the establishment of depositories in securities 2ith the ob4ecti.e of
ensuring free transferability of securities 2ith speed> accuracy and security0
#.&.# )epo$itor%/
%epository is an organi9ation 2here the securities of a shareholder are
held in the electronic form at the re?uest of the shareholder through a medium
of a %epository Participant (%P)0 !he principal function of a %epository is to deE
materiali9e securities and enables their transaction in boo7Eentry form
electronically0

(3
%epository functions li7e a security ban7> 2here the demateriali9ed
securities are traded and held in custody0 !his facilitates faster> ris7Efree and
lo2 cost settlement similar to ban70
Follo2ing tables compares the t2oD
B*NB )EPOSITOR8
Hold funds in account Hold securities in accounts
!ransfer funds bet2een accounts !ransfer securities bet2een accounts
!ransfer 2ithout physically handling
money
!ransfer 2ithout physically handling
securities
Safe7eeping of money Safe7eeping of securities
In India the %epository Act defines a %epository to mean> a company
formed and registered under the Companies Act> /8*6 and 2hich has been
granted a certificate of registration under subEsection (/A) of section /( of the
Securities and ,-change 'oard of India Act> /88(
)epo$itorie$ in India
!here are t2o depositories in India> 2hich pro.ide demateriali9ation of
securities0
Cational Securities %epository Limited (CS%L)
Central %epository Ser.ices Limited (C%SL)
Benefit$ of participation in a depo$itor%
Immediate transfer of securities
Co stamp duty on transfer of securities

(5
,limination of ris7s associated 2ith physical certificates such
as bad deli.ery> fa7e securities> etc0
Reduction in paper2or7 in.ol.ed in transfer of securities
Reduction in transaction cost
,ase of nomination facility
Change in address recorded 2ith %P gets registered
electronically 2ith all companies in 2hich in.estor holds securities
eliminating the need to correspond 2ith each of them separately
!ransmission of securities is done directly by the %P eliminating
correspondence 2ith companies
Con.enient method of consolidation of foliosIaccounts
Holding in.estments in e?uity> debt instruments and
$o.ernment securities in a single accountD automatic credit into demat
account of shares> arising out of splitIconsolidationImerger etc0
)epo$itor% Participant
!he %epository pro.ides its ser.ices to in.estors through its agents
called %epository Participants (%Ps)0 !hese agents are appointed by the
depository 2ith the appro.al of S,'I0 According to S,'I regulations> amongst
others> three categories of entities> i0e0 'an7s> Financial Institutions and S,'I
registered trading members can become %Ps0 !he depository has not
prescribed any minimum balance0 Customer can ha.e 9ero balance in his
account0

(*
ISIN
ISIC (International Securities Identification Cumber) is a uni?ue identification
number for a security0
C"$todian
A Custodian is basically an organi9ation> 2hich helps register and safeguard the
securities of its clients0 'esides safeguarding securities> a custodian also 7eeps
trac7 of corporate actions on behalf of its clients
&aintaining a client:s securities account
Collecting the benefits or rights accruing to the client in respect of
securities
Keeping the client informed of the actions ta7en or to be ta7en by
the issue of securities> ha.ing a bearing on the benefits or rights
accruing to the client0
)ematerialiCation of $ec"ritie$
In order to demateriali9e physical securities one has to fill a %emat Re?uest
Form (%RF) 2hich is a.ailable 2ith the %P and submit the same along 2ith
physical certificates0 Separate %RF has to be filled for each ISIC number0 1dd
lot share certificates can also be demateriali9ed0 %emateriali9ed shares do not
ha.e any distincti.e numbers0 !hese shares are fungible> 2hich means that all
the holdings of a particular security 2ill be identical and interchangeable0 1ne
can demateriali9e his debt instruments> mutual fund units> go.ernment
securities in his single demat account0
Re'materialiCation
If one 2ishes to get bac7 his securities in the physical form one has to fill

(6
in the Remat Re?uest Form (RRF) and re?uest his %P for rematerialisation of
the balances in his securities account0
Legal frame;ork/
!he %epositories Act /8*6 pro.ides the regulation of depositories in
securities0
S,'I formulated the %epositories and participants Regulation Act> /886
to o.ersee the matter regarding admission and 2or7ing of %epositories and its
participant0 !he %epositories Act passed by parliament recei.ed the President:s
assents on August /)> /8860 !he Act enables the setting up of multiple
depositories in the country0 1nly a company registered under the companies
Act (/8*6) and sponsored by the specified categories of institution can setup
depository in India0 !he %epository offers ser.ices relating to holding of
securities and facility processing of transaction in such securities in boo7 entry
form0 !he transaction handled by depositories includes settlement of mar7et
trades> settlement of offEmar7et trades> securities lending and borro2ing> pledge
@ hypothecations0
Eligi0ilit% criteria for a )epo$itor%/
Any of the follo2ing may be a %epository
A public financial institution as defined in section 5A of the
Companies Act> /8*60
A ban7 included in the second schedule to the R'I Act> /8350
A foreign ban7 operating in India 2ith the appro.al of the R'I0
A Recogni9ed Stoc7 ,-change0

(+
An institution engaged in pro.iding financial ser.ices 2here not
less then +*F of the e?uity is held 4ointly or se.erally by the
institution0
A custodian of the securities appro.ed by $o.ernment of India0
A foreign financial ser.ices institution appro.ed by $o.ernment of
India0
!he promoters of %epository are also 7no2n as its sponsors0 A
depository company must ha.e a minimum net 2orth of Rs0 /)) cr0 !he
sponsor(s) of the depository ha.e to hold at least */F of the capital of the
%epository Company0
*greement 0et;een depo$itor% and i$$"er$/
If either the issuers (a company 2hich has issued securities) or the
in.estor opts to hold his securities in a demat form> the issuer enters into an
agreement 2ith the depository to enable the in.estors to demateriali9e their
securities0 Co such agreement is necessary 2here the state or central
go.ernment is the issuer of securities0 ;here an issuer has appointed a
registrar to the issue of share transfer> the depository enters into a tripartite
agreement 2ith the issuer and (R@!) agent> the case may be> for the securities
declared eligible for demateriali9ation0
Right$ and o0ligation of )epo$itorie$/
,.ery depository should ha.e ade?uate mechanism for re.ie2ing
monitoring and e.aluating the controls> system> procedures and
safeguards0
Annual inspections of the procedures and it should be reported to S,'I0
!o ensure that the integrity of automatic data processor system is
maintained to safeguards information0

(<
Ade?uate measures> including insurance> to protect the interests of the
beneficial o2ners against any ris70
#.&.#.! @"nction of )epo$itor% Participant/
)ematerialiCation/
1ne of the primary functions of depository is to eliminate or minimi9e
the mo.ement of physical securities in the mar7et0 !his is done through
con.erting securities held in physical form in to holdings in to bac7 entry form0
*cco"nt Tran$fer
!he depository gi.es effects to all transfer resulting from the settlement
of trade and other transaction bet2een .arious beneficial o2ners by recording
entries in the accounts of such beneficial o2ners0
Tran$fer + Regi$tration/
A transfer is a legal change of o2nership of a security in the records of
the insurer0 !ransfer of securities under demat occur merely by passing boo7E
entries in the records of the depositories> on the instruction of beneficial o2ners0
Pledge and h%pothecation/
%epositories allo2 the securities 2ith them to be used as collateral to
secure loans and other credits0 !he securities pledged are transferred to a
segregated or collateral account through boo7Eentries in the records of the
depository0
Linkage ;ith clearing $%$tem/

(8
!he clearing system performs the function of ascertainment in the pay in
(sell) or payout (buy) of bro7ers 2ho lea.e traded on the stoc7 e-change0
Actually deli.ery of securities from the clearing system is from the selling
bro7ers and deli.ery of securities from the clearing system to the buying bro7er
is done by depository0 !o achie.e this depositories and the clearing system are
lin7ed electronically0
!o handle the securities in electronic form as per the %epositories Act
/886 t2o depositories are registered 2ith S,'I0
!hey are
/) CS%L EE Cational securities depository limited0
() C%SL EE Central depository ser.ice (India) limited0
NS)L
India had a .ibrant capital mar7et> 2hich is more than a century old> the
paperEbased settlement of trades caused substantial problems li7e bad deli.ery
and delayed transfer of title till recently0 !he enactment of %epositories Act in
August /886 pa.ed the 2ay for establishment of CS%L> the first depository in
India0 CS%L promoted by institutions of national stature responsible for
economic de.elopment of the country has since established a national
infrastructure of international standard that handles most of the trading and
settlement in demateriali9ed form0
Gsing an inno.ati.e and fle-ible technology system> CS%L 2or7s to
support the in.estors and bro7ers in the capital mar7et of the country0 CS%L
aims at ensuring the safety and soundness of Indian mar7etplaces by
de.eloping settlement solutions that increase efficiency and minimi9ing ris7 and
cost0 In the depository system> securities are held in depository accounts> 2hich
is more or less similar to holding funds in ban7 accounts0 !ransfer of o2nership
of securities is done through simple account transfers0
!his method does a2ay 2ith all the ris7s and hassles normally
associated 2ith paper2or70 Conse?uently> the cost of transacting in a

3)
depository en.ironment is considerably lo2er as compared to transacting in
certificates0
C)SL
C%SL 2as set up 2ith the ob4ecti.e of pro.iding con.enient> dependable
and secure depository ser.ices at affordable cost to all mar7et participants0
C%SL recei.ed the certificate of commencement of business from S,'I in
February /8880
%epository facilitates holding of securities in the electronic form and
enables securities transactions to be processed by boo7Eentry by a %epository
Participant (%P)> 2ho as an agent of the depository> offers depository ser.ices
to in.estors0 According to S,'I guidelines> financial institutions> ban7s>
custodians> stoc7bro7ers> etc0 are eligible to act as %Ps0 !he in.estor 2ho is
7no2n as beneficial o2ner ('1) has to open a demat account through any %P
for demateriali9ation of his holdings and transferring securities0
!he balances in the in.estors account recorded and maintained 2ith
C%SL can be obtained through the %P0 !he %P is re?uired to pro.ide the
in.estor> at regular inter.als> a statement of account> 2hich gi.es the details of
the securities holdings and transactions0 !he depository system has effecti.ely
eliminated paperEbased certificates> 2hich 2ere prone to be fa7e> forged>
counterfeit resulting in bad deli.eries0 C%SL offers an efficient and
instantaneous transfer of securities0

3/


Compan% Profile
30/ 'asic facts about SHCIL
30( Ser.ice profile of SHCIL
303 Product profile of SHCIL

P*RT III
3(
&.3 Compan% profile/
Stoc7 Holding Corporation of India Limited (SHCIL) 2as promoted by
public financial Institutions and insurance ma4ors li7e I%'I> G!I> ICICI> LIC> $IC
and its subsidiaries> IFCI and II'I0 It 2as incorporated on (<th Muly> /8<60
SHCIL acts an intermediary bet2een in.estors and CS%L I C%SL0
SHCIL is the first %epository participant to start %epository ser.ices 2ith
the introduction of the %epository system in the country> SHCIL commenced
e-tending %epository related ser.ices to the retail segment as 2ell and o.er the
last si- years> it has come to ac?uire the stature of the largest %epository
participant besides being the country:s largest custodian0 !he Corporation
pro.ides depository related ser.ices to its retail segment through more than /5)
offices located across the length and breadth of the country0
SHCIL 2or7s in a highly computeri9ed en.ironment0 StateEofEtheEart
technologies are employed to facilitate the business and to minimi9e the ris7
from automated operations0 SHCIL is a Laureate of the Computer ;orld Honors
Program0 SHCIL has also recei.ed Cational I! a2ard from the Computer
Society of India0 !he information technology department has been assessed at
C&& le.el E 3 by iEfle- consulting0
SHCIL handling large .olumes of securities and it has been facilitated by
the stateEofEtheEart technology0 Its highly automated set up and applications
ha.e been acclaimed by both national and international organi9ations> including
the prestigious Smithsonian Institution in the GS0 SHCIL also has one of the
best infrastructures in the country in terms of net2or7ing and hard2are
e?uipment0 !he ;ide Area Cet2or7 (;AC) nic7named OSHCIL CetP is one of
the largest ;ACs in the country0 Further> SHCIL:s inEhouse de.elopment
methodology has been certified at C&& le.elE3 by iEfle-> 2hile its I! acti.ities
ha.e been certified for IS1E8))/())) by '#=I0

33
SHCIL:s %epository participant ser.ices addresses an indi.idual:s
in.estment needs 2ith a parentage of leading financial institutions and
insurance ma4ors and a pro.en trac7 record in the custodian business0 It has
reiterated its past success by establishing as the first e.er largest %epository
Participant in India> from a tentati.e foray in /8<< into the indi.idual in.estor
arena to ser.icing around se.en la7hs account0 SHCIL has endea.ored to
constantly add and inno.ate to ma7e business a pleasure for in.estors0 SHCIL
has a net2or7 of more than /5) branches spread across the country pro.iding
ser.ices at your doorstep0 Across the country> /5 %epository Participant
&achines (%P&s) connected to CS%L and + %P&s connected to C%SL> 2hich
ensure fast and direct processing of clients instructions0
&.! Ba$ic$ fact$ a0o"t SHCIL/
SHCIL is India:s first and largest depository participant and it has more than
/5) )ffices across the country0
SHCIL has around ()F mar7et share i0e0 o.er < la7hs demat accounts
SHCIL has appro-0 *)F mar7et share of deli.ery based transaction 2hich
amount to Rs0 /033 crore transactions0
Recogni9ed by Securities ,-change Commission (S,C)> GSA as an Oeligible
foreign custodianP0
SHCIL has been honored the Smithsonian A2ard by Conferry for its
O#isionary use of I!P and also from Computer Society of India for best usage
of I!0
SHCIL has installed ORe?uest !ransmitting &achinesP (R!&:s) in the
selected places by combining in.estor:s ban7> in.estor:s bro7ers> stoc7
e-change> depository and depository participants so that in.estors can ma7e
orders for saleIpurchase of securities0 'y this SHCIL became the uni.ersal
ser.ice pro.ider0

35
SHCIL has 2i de range of financial ser.i ces " %P ser.i ces>
Custodial ser.ices> Securi ti es Lending> $1I bonds> S$L ser.ices>
Fund In.estment etc0

3*
ORA*NID*TION STR5CT5RE
HEIRARHIA! "#R$#$RE %& "HI!

'1AR% 1F %IR,C!1RS
&ACA$IC$ %IR,C!1R AC% C,1
M1IC! &%
S,CI1R #P
Q'GSIC,SS %I#ISI1CR
ASSIS!AC! #PBS %I#ISI1CAL &AC$,R
S,CI1R #P
QFICACC,R
#PBS
QFGCC!I1CALR
36
ORA*NIS*TION STR5CT5RE *T SHCIL? B*NA*LORE

List of .arious Functional #Ps
#P (%epository Ser.ices)
#P (Information !echnology)
#P (Products)
#P (Personal)
#P (HR%)
#P (R@%)
#P (Facilitation centre CoEordination)
!he follo2ing Positoins are belo2 Assistant
#Ps @ %i.0 &grs in the CompanyBs
1rgani9ational Hierarchy E
Senior &anager
&anager
%eputy &anager
Assistant &anager
,-ecuti.e
Munior ,-ecuti.e
%I#ISI1CAL &ACA$,R
%eputy &anager
(Hubli FC)
'angalore FC &anager
(&angalore FC)
SKoramangala CC
S&alles2aram CC
SMayanagar CC
S%a.angere cc
SShimogaCC
S&ysoreCC
$ulbarga CC 'elgaum CC
'elgaum CC
! r a d e s S C C I C 1 P @ , '
% e r i . a t i . e S L S
% u p u t y & a n a g e r A s s t & a n a g e r ( A I c B s ) I ! @ A u t o m a t i o n A s s t 0 & a n a g e r ( ' u s % e . )
% e m a t A I c 1 p e n i n g
' i l l i n g A d m i n i s t r a t i o n
% u p u t y & a n a g e r
%eputy &anager %eputy &anager
3+
&.# Ser:ice Profile/
C"$todial $er:ice/
Since its commencement in /8<< as the premiTre custodian in the
country> SHCIL has been pro.iding custodial ser.ices of international standards
to financial institution0 Foreign institutional in.estors and domestic mutual funds
2ith +)F of the institutional business to its credit> SHCIL has guaranteed to
pro.iding speciali9ed ser.ices to large in.esting institution dedicated pool of
professional 2or7ing in inter connected offices lin7ed to client institutions0 Stoc7
,-change> %epositories and bro7ers through #SA!s> electronic mail and other
telecommunication channels is at the help of SHCIL:s custodial ser.ice0

SHCIL offer$ the follo;ing $er:ice$ to the client$/
<i= 7arket operation/
Here they ta7e care of acti.ities starting from recei.ing the order to
recei.ingIdeli.ering the securities from the clearing HouseIclearing Corporation
to facilitate purchase and or the sale transaction0 SHCIL prefers transaction
through clearing hours0 Ho2e.er they also underta7e deli.ery #s payment
transaction if the clients desire the same0 &ar7et operation also includes
customi9ed reporting to clients0
<ii= Lodgment$ and regi$tration/
!his co.ers the receipt of securities and scrutiny thereof and also their
lodgment 2ith the RegistrarsICompanies0 !he securities sent for transfer are
follo2ed up at regular inter.als0 !here is also customi9ed reporting the clients of
securities in transit0

3<
<iii= C"$tod% management/
Custody management co.ers physical receipt of securities upon
registration from the company and online audit of shares in custody0 SHCIL is
the first custodian to introduce the bar coding system in India 2herein a uni?ue
identify is imparted to the securities by affi-ing a bar code0 !his aids in trac7ing
of securities at any point in the processing cycle correlation of certificates
recei.ed after registration0
<i:= )ata 0ank/
!o ser.e client> the corporation re?uires a large amount of the
information from Stoc7 ,-changes> %epositories> S,'I> Companies and other
entries of the capital mar7et0 %ata ban7 departments collect information from
companies and maintain obligation that is re?uired by the corporation for
carrying out mar7et obligation0 %ataban7 maintain information of appro-imately
/(>*)) instruments> <>*)) companies> (>*)) registrars> t2o depositories and si-
Stoc7 ,-change namely 'S,> CS,> 1!C,I> %S,> CS, @ &S,> information
regarding .arious scrip (listed and unlisted) in 2hich the clients ha.e holding>
information pertaining to boo7 closuresIrecords> dates for corporate e.ents> e-E
dates and no deli.ery schedules for .arious Stoc7 ,-changes0
It also 7eeps information related to details of monetary and nonE
monetary benefits> in the electronic segment information such as ISIC data> the
Registrars handling demat for a company> the scrip under compulsory0 %emat
trades as declared by S,'I and a script included in compulsory rolling
segments etc0
<:= Corporate action$/
Corporate actions cell ensures timely collection of monetary and
nonEmonetary benefits0 It co.ers all acti.ities related to corporate actions li7e

38
calculation entitlement receipts of monitory corporate actions and transfer of the
same to client0 It also does customi9ed reporting to clients on the status
corporate actions0
<:i= Primar% market/
Here SHCIL ta7es care of applications on behalf of clients for
mar7et issues> calculates the entitlement> follo2 up for allotment or refunds and
send customi9ed reports to clients0
<:ii= Client interface/
!his is the single point contact for all client issues0 !he client
interface team prepares and reconciles holding the statement for clients0
<:iii= Reporting and market "pdate$/
SHCIL ma7es a.ailable reports on client:s holdingsD scripts a.ail
for trade and .aluation of securities based on the mar7et price on hard copy as
2ell as through file transfer mechanism0
<i2= Street name $ec"ritie$/
!his is a special ser.ice offered to clients 2ho 2ish to turn around their
portfolio in a speedy manner0 !he securities purchased by the clients are not
sent for registration> but are stored in the safe deposit .alue of the corporation>
the corporate e.ents are monitored continuously and the securities are sent for
regulation during boo7 closure or before the e-piry of the transfer deed0
Technolog% $"pport team/
SHCIL has been able to maintain its lead position in this high
.olume mission critical and securities en.ironment largely due to the emphasis
on the inno.ati.e use of technology0 SHCIL has recogni9ed the need to adopt

5)
stateEofEtheEart technology right from its inception a direct result of this is the
receipt of the Smithsonian Institutes A2ard for O#isionary use of information
technology O and the CA!I1CAL I! a2ard from CSI for O',S! I! GSA$,P
%uring the past ten years SHCIL has been a user of a 2ide range of
hard2are and has one of the best infrastructures in Indian in terms of hard2are
and net2or7ing e?uipment0 It has an enterprise 2ide net2or7 implemented
using leased lines #SA!> #PC> and IS%C0
About /5) offices are connected through the net2or70 All the
2or7stations are interconnected .ia Local Area Cet2or7 and all the branches
and facilitation centers (totaling /5) offices) of SCHIL are connected .ia ;ide
Area Cet2or70 !here is a total integration of front office 2ith central bac7 office
system and regional offices 2ith our corporate office0 SHCIL:s enterprises 2ide
net2or7 connects ser.ers of .arious platforms0
OSHCIL CetP is one of the largest ;ACs in the Country0 SHCIL:s inEhouse
de.elopment methodology has been certified at C&& le.elE3 by iEFle-> 2hile its
I! acti.ities ha.e been certified for IS1E8))/ by '#=/0
)epo$itor% Ser:ice/
SHCIL:S depository participant ser.ices addresses indi.idual
in.estment needs0 ;ith a percentage of leading financial institutions and
insurance ma4ors and a pro.en trac7 record in the custodian business> SHCIL
has registered its past success by establishing itself as the first e.er and largest
depository participant in India0
From a tentati.e foray in /88< into the indi.idual in.estor arena to
ser.icing around se.en la7h accounts> SHCIL has endea.ored to constantly add
and inno.ate to ma7e business a pleasure for its clients0 Across the country>
fourteen %epository Participant &achines (%P&s) connected to CS%L and
se.en connected to C%SL ensure fast and direct processing clients instruction0

5/
SHCILE$ )epo$itor% Ser:ice incl"de$/
Creation of demat re?uest based on client re?uirement
Follo2Eup 2ith RegistrarsIcompanies for pending demat cases0
Accounting of securities recei.ed in demateriali9ation form0
1pening and maintenance of client %emat accounts
,lectronic holding statement to clients0
Lessoning 2ith %epositories0
Settlement of !rades in electronic form0
Pledging0
Reporting0
Securities lending0
*cco"nt opening
Any in.estor 2ho 2ishes to a.ail depository ser.ices must first open an
account 2ith a %epository participant of CS%L0 !he in.estor can open an
account 2ith any depository participant of CS%L0 An In.estor may open an
account 2ith se.eral %Ps or he may open se.eral accounts 2ith single %P0
After e-ercising this choice> the in.estor has to enter into an agreement 2ith the
%P0 !he form and contents of this agreement are specified by the business
rules of CS%L0
A %P may be re?uired to open three categories of accounts for clients E
'eneficiary Account> Clearing &ember Account and Intermediary
Account0
A 'eneficiary Account is an o2nership account0 !he holderIs of
securities in this type of account o2ns those securities0

5(
!he Clearing &ember Account and Intermediary Account are transitory
accounts0 !he securities in these accounts are held for commercial
purpose only0
A Clearing &ember Account is opened by a bro7er or a Clearing &ember
for the purpose of settlement of trades0
An Intermediary Account can opened by a S,'I registered intermediary
for the purpose of stoc7 lending and borro2ing0
Check Li$t for *cco"nt Opening
Proof of Address> certified copies of ration cardI passportI .oter I%I PAC
cardI dri.ing License I ban7 passboo70
,nsure that all compulsory fields in the account opening form are filled
(e-cept PACI $IR @ nomination 2hich are optional)0
In case of corporate> ensure a copy of board resolution of authori9ed
signatories0 ,nsure proper authori9ation in case of po2er of attorney
holder0
%P should gi.e a copy of agreement to the client> including the charges0
Inform clients regarding standing instruction facility0
'ranches of %P to coEordinate @ follo2 up 2ith Head 1ffice for account
opening0
,nsure account is acti.ated before for2arding Client I% to client0
Inform settlement deadlines to clients0
)ematerialiCation
1ne of the methods for pre.enting all the problems that occur 2ith
physical securities is through demateriali9ation (demat)0 !he share certificates
are shredded (i0e0> its paper form is destroyed) and a corresponding credit entry
of the number of securities (2ritten on the certificates) is made in the account

53
opened 2ith the depository participant (%P)0 ,ach security is identified in the
depository system by ISIC and short name0
Step$ in )ematerialiCation of $hare$/
/0 ClientI In.estor submit the %RF (%emat Re?uest Form) and physical
certificates to %P0 %P chec7s 2hether the securities are a.ailable for
demat or not0 Client defaces the certificate by stamping ASurrendered for
%emateriali9ation:0 %P punches t2o holes on the name of the company
and dra2s t2o parallel lines across the face of the certificate0
(0 %P enters the demat re?uest in his system to be sent to CS%L0 %P
dispatches the physical certificates along 2ith the %RF to the R@! Agent0
30 CS%L records the details of the electronic re?uest in the system and
for2ards the re?uest to the R@! Agent0
50 R@! Agent> on recei.ing the physical documents and the electronic
re?uest> .erifies and chec7s them0 1nce the R@! Agent is satisfied>
demateriali9ation of the concerned securities is electronically confirmed
to CS%L0
*0 CS%L credits the demateriali9ed securities to the beneficiary account of
the in.estor and intimates the %P electronically0 !he %P issues a
statement of transaction to the client0
Remateriali$ation
ReEmateriali9ation is the e-act re.erse of demateriali9ation0 It
refers to the process of issuing physical securities in place of the securities held
electronically in boo7Eentry form 2ith a depository0 Gnder this process> the
depository account of a beneficial o2ner is debited for the securities sought to
be reEmateriali9ed and physical certificates for the e?ui.alent number of

55
securities isIare issued0 A beneficial o2ner holding securities 2ith a depository
has a right to get his electronic holding con.erted into physical holding at any
time0 !he beneficial o2ner desiring to recei.e physical security certificates in
place of the electronic holding should ma7e a re?uest to the issuer or it:s R@!
Agent through his %P in the prescribed reEmateriali9ation re?uest form (RRF)0
Re'7aterialiCation Proce$$/
/0 !he %P should pro.ide reEmateriali9ation re?uest forms (RRF) to clients0
(0 !he client should complete RRF in all respects and submit it to the %P0
30 If RRF is not found in order> the %P should return the RRF to the client
for rectification0
50 If RRF is found in order the %P should accept RRF and issue an
ac7no2ledgement to the client0
*0 %P should enter the reEmateriali9ation re?uest in %P&0 %P& 2ill
generate a remat re?uest number (RRC) 2hich should be mentioned on
RRF0
60 An authori9ed person> other than one 2ho entered the RRF details in
%P&> should .erify the details of RRC and release a re?uest to the
depository0
+0 !he %P should complete the authori9ation of RRF and for2ard it to the
issuer or it:s R@! Agent for reEmateriali9ation0 !he %P should for2ard
RRF to the issuer or it:s R@! Agent 2ithin se.en days of accepting it
from the client0
<0 !he issuer or its R@! Agent should .erify the RRF for .alidity>
completeness and correctness0 It should also match the details 2ith the
intimation recei.ed from the depository against the same RRC0
80 In case the issuer or its R@! Agent finds RRF in order> it should confirm
the reEmat re?uest0 !he issuer or its R@! Agent should then proceed to

5*
issue the physical security certificates and dispatch them to the beneficial
o2ner0
/)0 !he %P> on recei.ing confirmation of debit entry in %P&> should inform
the client accordingly0
The entire process takes a maximum of 30 days.
Trading and $ettlement
1ne of the basic ser.ices pro.ided by CS%L is to facilitate transfer of
securities from one account to another at the instruction of the account holder0
In CS%L depository system both transferor and transferee ha.e to gi.e
instructions to its depository participants U%PsV for deli.ering Utransferring outV
and recei.ing of securities0 Ho2e.er> transferee can gi.e BStanding InstructionsB
USIV to its %P for recei.ing in securities0 If SI is not gi.en> transferee has to gi.e
separate instructions each time securities ha.e to be recei.ed0
!ransfer of securities from one account to another may be done for any
of the follo2ing purposes
a0 !ransfer due to a transaction done on a person to person basis is called BoffE
mar7etB transaction0
b0 !ransfer arising out of a transaction done on a stoc7 e-change0
c0 !ransfer arising out of transmission and account closure0
Settlement of off'7arket tran$action

56
Step$ in $ettlement of off'market tran$action
/0 Seller gi.es deli.ery instructions to his %P to mo.e securities from his
account to the buyerBs account0
(0 'uyer automatically recei.es the credit of the securities into his account
on the basis of standing instruction for credits0
30 'uyer recei.es credit of securities into his account only if he gi.es receipt
instructions> if standing instructions ha.e not been gi.en0
50 %P needs to be e-tra careful in .erifying the signature of the client if
unusual ?uantities of securities are being debited to the account
*0 Funds mo.e from buyer to seller outside the CS%L system0

5+
A mar7et trade is one that is settled through participation of a Clearing
Corporation0 In the depository en.ironment> the securities mo.e through
account transfer0 1nce the trade is e-ecuted by the bro7er on the stoc7
e-change> the seller gi.es deli.ery instructions to his %P to transfer securities to
his bro7erBs account0
!he bro7er has to then complete the payEin before the deadline
prescribed by the stoc7 e-change0 !he bro7er remo.es securities from his
account to CCICH of the stoc7 e-change concerned> before the deadline gi.en
by the stoc7 e-change0
!he CCICH gi.es payEout and securities are transferred to the buying
bro7erBs account0 !he bro7er then gi.es deli.ery instructions to his %P to
transfer securities to the buyerBs account0
!he mo.ement of funds ta7es place outside the CS%L system0
/0 Seller gi.es deli.ery instructions to his %P to mo.e securities from his
account to his bro7erBs account

5<
(0 Securities are transferred from bro7erBs account to CC on the basis of
a deli.ery out instruction0
30 1n payEout> securities are mo.ed from CC to buying bro7erBs account0
50 'uying bro7er gi.es instructions and securities mo.e to the buyerBs
account0
!ransfer of securities to2ards settlement of transactions done on a stoc7
e-change is called settlement of mar7et transaction0 !his type of settlement is
done by transferring securities from a beneficiary account to a clearing member
account0
'ro7ers of stoc7 e-changes that offer settlement through depository are
re?uired to open a Bclearing member accountB0 In addition to the bro7ers>
custodians registered 2ith S,'I and appro.ed by stoc7 e-changes can open a
clearing member account0 !hese accounts are popularly 7no2n as B'ro7er
Settlement AccountB0 A client 2ho has sold shares 2ill deli.er securities into the
settlement account of the bro7er through 2hom securities 2ere sold0
Pledge and H%pothecation
!he %epositories Act permits the creation of pledge and hypothecation
against securities0 Securities held in a depository account can be pledged or
hypothecated against a loan> credit> or such other facility a.ailed by the
beneficial o2ner of such securities0 For this purpose> both the parties to the
agreement> i0e0> the pledger and the pledgee must ha.e a beneficiary account
2ith CS%L0 Ho2e.er> both parties need not ha.e their depository account 2ith
the same %P0
!he nature of control on the securities offered as collateral determines
2hether the transaction is a pledge or hypothecation0 If the lender (pledge) has
unilateral right (2ithout reference to borro2er) to appropriate the securities to

58
his account if the borro2er (pledger) defaults or other2ise> the transaction is
called a pledge0
Pledge of )emat $hare$
Step$/
/0 Agreement is signed bet2een the pledger and pledgee outside the CS%L
system
(0 Pledger gi.es a pledge creation re?uest to %P 2ho enters it in the
system0
30 !he re?uest reaches the pledgeeBs %P through the CS%L system0
Pledgee is intimated by his %P0
50 Pledgee gi.es a pledge creation confirmation to his %P 2ho enters it in
the system0
*0 Securities are transferred from Bfree balancesB head to Bpledged balancesB
head0
60 Loan is gi.en by pledgee to pledger outside the CS%L system0
Checkli$t for pledgeFh%pothecation
;hile processing a pledgeIhypothecation re?uest> the %P should ta7e care 2ith
regard to the follo2ing stepsIpoints
/0 ,nsure that the instruction form is submitted in duplicate0
(0 1n receipt of instruction for creation of pledge> chec7 2hether there is
enough balance in pledgerBs account to effect the creation of
pledgeIhypothecation or not0 If not> ad.ise the client suitably0
30 ,nsure that all compulsory fields in the instruction form are entered0
50 ,nsure that re?uest for confirmation of pledge is gi.en before the closure
date mentioned in the instruction form0
Stock Lending and Borro;ing

*)
!he transactions in.ol.ing lending and borro2ing of securities are
e-ecuted through appro.ed intermediaries duly registered 2ith S,'I under the
Securities Lending Scheme> /88+0 Such an intermediary may deal in the
depository system only through a special account (7no2n as Intermediary
Account) opened 2ith a %P0 An intermediary account may be opened 2ith the
%P only after the intermediary has obtained S,'I appro.al and registered itself
2ith S,'I under the Securities Lending Scheme0 !he intermediary also needs
to obtain an appro.al of CS%L0
)epo$it of $ec"ritie$ from lender to intermediar%
Step$/
/0 Lender for2ards re?uest to his %P0
(0 LenderBs %P electronically communicates re?uest to CS%L0
30 !he securities are bloc7ed in lenderBs account in fa.or of the
intermediary0
50 CS%L electronically informs intermediaryBs %P0
*0 Intermediary for2ards acceptance re?uest to his %P0

*/
60 IntermediaryBs %P electronically communicates acceptance to CS%L0
+0 Securities are mo.ed from lenderBs account to intermediaryBs account0
Lending of $ec"ritie$ 0% intermediar% to Borro;er
Step$/
/0 'orro2er for2ards re?uest to his %P0
(0 'orro2erBs %P electronically communicates re?uest to CS%L0
30 CS%L electronically informs intermediaryBs %P0
50 Intermediary for2ards acceptance re?uest to his %P0
*0 IntermediaryBs %P electronically communicates acceptance to CS%L0
60 Securities are mo.ed from intermediaryBs account to borro2erBs
account
Repa%ment of $ec"ritie$ 0% Borro;er to intermediar%
/0 'orro2er for2ards repayment re?uest to his %P0
(0 'orro2er:s %P electronically communicates re?uest to CS%L0
30 !he securities are bloc7ed in borro2er:s account in fa.our of the
intermediary0
50 CS%L electronically informs intermediary:s %P0

*(
*0 Intermediary for2ards acceptance re?uest to his %P0
60 Intermediary:s %P electronically communicates acceptance to CS%L0
+0 Securities are mo.ed from borro2er:s account ton Intermediary:s
account0
Repa%ment of $ec"ritie$ 0% intermediar% to lender
/0 Intermediary for2ards repayment re?uires to his %P0
(0 Intermediary:s %P electronically communicates re?uest to CS%L0
30 Securities are bloc7ed in intermediary:s account in fa.our of the
lender0
50 CS%L electronically informs lender:s %P0
*0 0Lender for2ards acceptance re?uest to his %P0
60 Lender:s %P electronically communicates acceptance to CS%L0
+0 Securities are mo.ed from intermediary:s account to lender:s account0
&.& Prod"ct$ offered 0% SHCIL/
*dd $hare$/
Stoc7 holding has tie up 2ith reputed ban7s> 2hich offer the most
competiti.e interest rates in the mar7et0 !he clients can use the shares in their
free account as collateral and ta7e a loan from any of an empanelled ban70
SCHIL completes the documentation and processing and gi.e the
che?ue to the customers0 A%% shares is a.ailable at SHCIL centers in all the
ma4or cities0
@eat"re$
Loan against demat shares held in the %P account 2ith SHCIL0

*3
Competiti.e interest rates from a range of 'an7s> 2ith 2hom SHCIL has tied
up0
SHCIL processes the entire paper2or7 re?uired 2ith the ban70
!he ser.ice is a.ailable at o.er /)) branches in the SHCIL0
*d:antage$/
!he stoc7 holding tieEups 2ith ban7s gi.es a 2ide range of ban7s to choose
from this reads as a 2ider range of specified and nonEspecified shares to get
a loan against their share0
!he A%% shares team helps customer 2ith the paper formalities precedent
to a loan0
!he clients can no2 get a loan at competiti.e interest rates and margins0
!his is a resultant of SHCIL:s tieEup 2ith a 2ide range of ban7s0
A%% a share simplifies longE2inded loan procedures for customer and
facilitates early disbursement of funds
Add shares are a.ailable at /() branches all o.er0
E>"i0"%/
As a depository participant> SHCIL assures a safe deli.ery of shares
e.ery time the client buys on the e-change0 SHCIL has lined up a panel of
reputed bro7ers 2ho process orders on priority0 As the clearing corporations of
leading stoc7 e-changes SCHIL ensures smooth and sure credits into an
account0 An initial ad.ance and timely replenishments into the Purchase
Ad.ance account ta7e care of the payment for customer purchases0
@eat"re$/

*5
An ,?uibuy instruction from clients gets the shares credited into the account
the ne-t day of payout0
Payment for purchase made from a running account called Purchase
Ad.ance into 2hich the remit an initial ad.ance of Rs0 />))) and maintain a
minimum balance of Rs0 (*) at all times0
Choosing one or more bro7ers from a list of ++ bro7ers empanelled 2ith
SHCIL0 Registration 2ith bro7er is not necessary if client is already registered
under any of SHCIL:s other product schemes
Purchase on 'S, or CS,0
*d:antage$
'uy shares 2ith a single instruction and get an assured credit of shares into
clients account the ne-t day of payout0
Lea.e the settlement procedures and bro7er interaction to SHCIL0
It affects a faster turnaround of customer portfolio0
,?uibuy has a .ery nominal charge0
An initial ad.ance of Rs0 />))) in the Purchase Ad.ance Account and
replenishments> as and 2hen necessary> it ta7es care of payment for client:s
purchases0
@"nd in:e$t/
Fund In.est is a bas7et of financial products> ranging from fi-ed income
securities li7e fi-ed deposits> Infrastructure bonds and Capital $ain 'onds to
.ariable income securities li7e Initial Public 1ffers (IP1s) of e?uities and mutual
funds0 It is an attempt to offer financial products that cater to the .arious
in.estments needs of esteemed clients of SHCIL0 An effort to guide the in.estor
to a product portfolio that best suits his ris7 returns profile0 Applications for
in.estments can be source from any of the SHCIL offices0 Apart from guiding>

**
in.estor to pic7 up the right combination of in.estment instruments> SHCIL help
them BafterEsalesB ser.ice> by acting as an interlocutor bet2een the in.estor and
the issuer of the securities0 SHCIL is an A&FI Registered &utual Fund Ad.isor
(AR&FA)0
@eat"re$/
At present> SHCIL are distributing schemes of (* different &utual Fund0
All these Funds offer 2ide .arieties of in.estment option depending on the ris7
appetite of the in.estor0
Capital $ains 'onds come under *5 ,C Capital $ains 'onds> 2here
in.estors get e-emption from Capital $ain !a-0 !hese are BonEtap B issues0 At
present> SHCIL is distributing Capital $ain 'onds of Rural ,lectrification
Corporation> Cational Housing 'an7> Small Industries %e.elopment 'an7 of
India and Cational High2ay Authority of India0 ICICI 'an7 and I%'I> 2ith Section
<< as the main feature issue infrastructure 'onds
Pri:ate Placement$
Stoc7 Holding distributes %ebt papers issued for Pri.ate Placement 2ith
Structural 1bligations by the State and Central $o.ernment> typically targeted
for !rusts and Pro.ident Funds0
@i2ed )epo$it$/
SHCIL distribute Fi-ed %eposits 2ith high in.estment rating and issued
by blueE chip corporate0 !hese papers generally offer *) to /)) basis points
more than ban7 fi-ed deposits of comparable period0 At present> they are
distributing I%'I Su.idha Fi-ed %eposits and H%FC Fi-ed %eposits0
Initial P"0lic Offer/
IP1s offered from blue chip corporate can be subscribed from SHCIL0

*6
AOI Bond$/
Sa.ings 'onds are issued by R'I on behalf of $o.ernment of India0
1.3G ta2a0le 0ond$
!hese 'onds are held in electronic form in an account called 'ond
Ledger Account ('LA)0 'ond Ledger Accounts can be opened and operated
2ith R'I designated Recei.ing 1ffices0 SHCIL has been designated as one of
the Recei.ing 1ffices by R'I for this purpose0 Subscriptions for Sa.ings 'onds
can be submitted at any of the branches0
Sa.ings 'onds being so.ereign in nature are absolutely safe and an
attracti.e in.estment option in the current .olatile mar7et situation0
*d:antage$/
Ha$$le free maintenance !he $1I 'onds are held in electronic form in
an account called 'ond Ledger Account0 !his ensures smooth in.esting minus
paper2or70
Electronic Clearing Ser:ice$/ !he in.estor can a.ail of ,lectronic
Clearing System (,CS) ser.ices0 !his ensures automatic credit of benefits and
redemptions 2hen they accrue0
Ea$% acce$$ In.estor can apply for subscriptions into these 'onds in
any SHCIL center across the country0
)i$patch/ Certificate of Holdings is dispatched to the client through
courier on reali9ation of subscription0
@eat"re$

*+
In.estment Limit
&inimum in.estment is Rs0/))) and there is no
ma-imum limit
Interest 1ption
Payable half yearly on /st Feb> /st Aug or cumulati.e
on maturity0
!a- 'enefits
Interest is ta-able under I! Act /86/0 ,-empt from
;ealth !a- under ;ealth !a- Act /8*+
!ransferability
ConEtransferable> nonEtradable and cannot be used
as collateral for borro2ings
Comination
A.ailable0 1nly sole holder or sur.i.ing holder can
nominate
Repayment
Repayable on e-piry of 6 years from date of issue0 Co
interest 2ould accrue after maturity
Premature ,ncashment Cot a.ailable
Stock direct/
!he client can send instructions for buyingIselling shares0 A threeE2ay
handsha7e bet2een leading bro7ers> national and international ban7s and
SHCIL is the cru- of Stoc7 direct0
Stoc7 direct is IndiaBs first online trading platform 2hich 2as launched in
/8880 !oday Stoc7 direct is the most secure online trading platform 2hich
combines encryption technology I digital signature as 2ell as Smart Card
security features0
A fe2 clic7s 2ill seamlessly chec7 client:s funds and security positions>
route the order to the bro7er of choice and do the necessary fund and share
mo.ements for the client0 For people 2ho are not inclined to trading on the net>
SHCIL has Re?uest !ransmitting &achines (R!&s) placed at specified SHCIL

*<
centers0 !his is an electronic touch screen 7ios7 2here client can insert smart
card and trade effortlessly0
@eat"re$/
A single instruction enables client to combine the trading> fund and share
transfers 2ith SHCIL ta7ing care of the settlement0 !rade from home on the
Internet 2ith a floppy containing the Stoc7 direct soft2are or use the Smart Card
to trade through the Re?uest !ransmitting &achines (R!&s) placed at specified
SHCIL centers and partner ban7sB designated branches0 Security measures
based on encryption and digital signature coupled 2ith smart card technology
ma7e online deals /))F secure0
*d:antage$/
1ne Stop Shop gi.es a single instruction to2ards funds confirmation for buy
orders> order routing to clients bro7er and fund and share mo.ements for
settlement purpose0
Con.enient0
!rade from home through the net or use the R!&s placed at specified
SHCIL centers
Security
%igital Signature @ Smart Card technology based on /(<Ebit ,ncryption
ma7e transactions /))F secure0
Cost ,ffecti.e
Co minimum .alue of transactions
Ser:ice$
Trade proce$$ing $er:ice$

*8
SHCIL has specially trained personnel handling thousands of trade
instructions in.ol.ing large .alues on sophisticated systems using digital
signature on S!P (Straight !hrough Processing) systems> ensuring smooth
trade confirmations to Stoc7 ,-changes> reporting and resolution of mismatches
2ith Clients> etc0
Settlement $er:ice$
Institutional trades are either settled through the Clearing House of the
Stoc7 ,-changes or as %#P directly 2ith the contracting bro7er or Counter
Party0 As a Custodian SHCIL stri.es for timely settlement of Funds and
Securities> funds are collectedI deposited fromIto client and settled 2ith the
Clearing HousesI 'ro7ersI Counter Parties0
In the present conte-t> most of the Institutional trades are settled in the
%epository mode0 For the Institutional segment alone> SHCIL has a uni?ue
clearing code on the t2o principal stoc7 e-changes and separate %P& units on
both CS%L and C%SL0 !his ensures smooth settlement of transactions on both
,-changesI%epositories> based on the deli.erables and recei.ables recei.ed by
them for each settlement0
For the occasional deli.ery and receipt of securities in the physical mode>
SHCIL ensures prompt scrutiny> processing and lodgment of securities 2ith the
respecti.e CompanyIRegistrar and !ransfer Agent> 2ith the ob4ecti.e of final
transfer to the purchaser> 2ith ob4ections handling if needed> thus facilitating
deli.ery of securities to the parties concerned on sale0
Ph%$ical c"$tod% $er:ice$

6)
!he transferred physical securities> 2hen recei.ed> are held in stateEofE
theEart> highEsecurity .aults on behalf of the clients0 A pioneer in introducing the
barEcoding system to trac7 certificates> SHCIL ensures the a.ailability of each
and e.ery share certificate at a moments notice0
Int"itional )P $er:ice$
SHCIL has installed dedicated %P&:s (%epository Participant &odules)
on both the %epositories> .i90 CS%L (Cational Securities %epository Ltd) and
C%SL (Central %epository Ser.ices Ltd)0
A dedicated Institutional %P team at SHCIL addresses your need for all
core %P ser.ices li7e con.ersion of physical holdings into electronic form>
settlement of trade instructions> Rematerialisation> repurchase and pledge
instructions> pro.iding of holding and transaction statements and daily
reconciliation of client holdings0
NRI $er:ice$
1.er the years> SHCIL has gro2n to become a ma4or player in the capital
mar7et0 ;ith a net2or7 of more than /5) offices operating across the country
and franchisees operating abroad> SHCIL pro.ides %epository Participant and
related ser.ices close to )0+ million satisfied in.estors out of 2hich o.er 6)))
are CRI Clientele0
SHCIL has a fullEfledged CRI cell operating specifically to cater needs
pertaining to %epository account opening and maintenance0 CRI cell coE
ordinates 2ith prospecti.e CRI customers> collects and assists in obtaining the
rele.ant documents and ensures the %epository Account is opened hassle free0
CRI Cell collects physical certificates to be sent for demat and ensures
that the certificates are in order and can be sent for dematerialisation under the
e-isting guidelines issued by the depositories0 Instructions for trade are

6/
accepted by fa- on re?uest by CRI Cell to ensure timely settlement of trades0 In
this case later on the client needs to regularise by sending the original trade
deli.ery instruction0 Any tariff and billing related ?uery are addressed by CRI
Cell0
In short CRI Cell is a single point contact for any matter relating to CRI
%epository operations0
)eri:ati:e $er:ice$/
SHCIL pro.ides Clearing Ser.ices for deri.ati.e segment of 'S,ICS,
and Commodity segment of &CWICC%,W0 %eri.ati.e ser.ices are classified into
t2o they are
Stock derivative services,
ommodity derivative clearin! services.
As a professional clearing member> SHCIL performs the follo2ing functions
Clearing E Computing obligations of all his !&:s i0e0 determining positions
to settle0
Settlement E Performing actual settlement0
Collateral &anagement E Collection of collateral (cashIcash e?ui.alents
and securities)> .aluation on a regular basis (as per M0 R0 #arma
recommendations) and setting up e-posure limits for !&s and
Institutional clients0
Ris7 &anagement E Setting position limits based on upfront deposits I
margins for each !& and monitoring positions on a continuous basis0
Stock 0roking $er:ice
Stoc7 Holding Corporation of India ltd> 'angalore recently started the
stoc7 bro7ing ser.ice on /<
th
Mune ())60 foe a.ailing these ser.ices client must
2ant demat account 2ith SHCIL0 For those only this ser.ice is a.ailable0
Presently client can trade only in 'S,0

6(
For a.ailing this ser.ices client 2ant to opening of stoc7 bro7ing account by
submitting necessary document0 After submission of application account 2ill
open in + to /) days Personal client I% 2ill gi.e to client then client can trade0 If
he 2ant to purchase any script client 2ant to deposit margin amount in ban7
then he can buy scripts0 0
Charge$
Account opening charges /*)IE for one month (from commencement of
business)> 5*)IESecond month on2ard0 %P charges 2ill nil for trades done
through SSL0 &inimum charge of Rs0 *)IE for per transaction0
'ro7erage on transaction
Slabs 'ro7erage
'ase bro7erage )0**F
umulative transaction value
*E/) lacs )0*)F
/)E() lacs )05*F
()E*) lacs )05)F
*) lacsE/crore )03*F
/ croreE( crore )03)F
* croreE/) crore )0(*F
/) crore and abo.e )0()F

63


)ata *nal%$i$ and Interpretation
50/ &ethodology
50( %ata Analysis

P*RT I6
65

(.! 7ethodolog%/
Primar% )ata
A ?uestionnaire schedule 2as prepared and the primary data 2as
collected0
Secondar% )ata
Company 2ebsite
Customer data base
Company report A
'oo7s and publications
Related information from net
Period of St"d%/
!he study concentrates only on the past 3 years data 2ith the help of data
source a.ailable0 Period of study and analy9ing the primary data is t2o months0
T%pe of re$earch/
!his is a descripti.e research 2here sur.ey method is adopted to collect
primary information from the in.estors using different scales as re?uired and the
re?uired secondary information for the analysis0
Sampling Techni>"e
!he sampling techni?ue follo2ed in this study is nonEprobability
con.enient sampling0 Simple random techni?ues are used to select the
respondent from the a.ailable database0 !he research 2or7 2ill be carried on
the basis of structured ?uestionnaire0 !he study is restricted to the in.estors of
the 'angalore and 'hubanes2ar city only0

6*
Sample SiCe
!he population being large the sur.ey 2ill be carried among /*)
respondents 2ho are the clients of SHCIL> 'angalore Stoc7 ,-change and
'hubanes2ar Stoc7 ,-change0 !hey 2ill be considered ade?uate to represent
the characteristics of the entire population0
Tool$ "$ed for data anal%$i$
!he analysis of data collection is completed and presented systematically
2ith the use of &icrosoft ,-cel and SPSS0
(.# )ata anal%$i$/
!. In:e$tment preference among :ario"$ age gro"p$/
In:e$tment *:en"e$
*ge Aro"p <in 8ear$=
X () () E 3) 3/ E 5) 5/ E 6) Y 6)
,?uity (* (5 (+ (< /*
%ebenture I 'onds // /) 8 /* (3
'an7 %eposits /< /< /+ /6 ()
Insurance () (5 (( (/ /5
PPF 6 * < 5 +
$old @ Real ,state /< /* /* /( /+
1thers ( 5 ( 5 5
In:e$tment preference among :ario"$
age gro"p
)
*
/)
/*
()
(*
3)
X () () E
3)
3/ E
5)
5/ E
6)
Y 6)
*ge gro"p <in 8ear$=
@
r
e
>
"
e
n
c
%

<
i
n

G
=
,?uity
%ebenture I 'onds
'an7 %eposits
Insurance
PPF
$old @ Real ,state
1thers

66
Interpretation/
From the abo.e tables 2e can conclude that> all the age groups are gi.e
more preference on in.esting in e?uity> e-cept those 2ho are more than si-ty
years0 And the second more preferable in.estment a.enue is insurance0 'ut the
age group 2hich is more than si-ty years gi.es more preference to in.est in
%ebenture> !a- sa.ing bonds and then ban7 deposits0
#. In:e$tment preference among :ario"$ income le:el$/
In:e$tment
*:en"e$
*nn"al Income <in R$. lakh=
X / / E ( ( E 30* 30* E * Y *
,?uity /6 /8 (6 (6 (8
%ebenture I 'onds * 6 + + <
'an7 %eposits 3/ (5 (/ /< /5
Insurance /* /+ /< () (/
PPF /5 /6 /< /* /6
$old @ Real ,state 3 5 * < 8
1thers /6 /5 * 6 3
)
*
/)
/*
()
(*
3)
3*
@
r
e
>
"
e
n
c
%

<
i
n

G
=
X / / E ( ( E
30*
30* E
*
Y *
Income le:el
In:e$tment preference among :ario"$ income
le:el
,?uity
%ebenture I 'onds
'an7 %eposits
Insurance
PPF
$old @ Real ,state
1thers

6+
Interpretation/
!he abo.e table re.eals that higher income le.els are gi.ing more preference to
in.est in e?uity 2here as lo2er income le.els gi.en more preference to in.est in
ban7 deposits0 It implies that the higher income le.el groups are preferred to
ta7e more ris7 in in.estment rather than lo2er income le.el0 And those 2ho are
ta7en more ris7 in in.estment are preferred to in.est in e?uity rather than any
in.estment a.enues0
&. Relation$hip 0et;een income le:el and in:e$tment/
*nn"al income In:e$tment per ann"m
<Heighted *:erage=
'elo2 /0* la7hs (<*))
/0* to 3 la7hs 5*)))
3 to 50* la7hs +))))
50* la7hs and Abo.e /)))))

)
())))
5))))
6))))
<))))
/)))))
'elo2
/0*
La7hs
/0* to
3
la7hs
3 to
50*
La7hs
50*
la7hs
and
Abo.e
*nn"al Income <in
R$.=
Relation 0et;een income and in:e$tment
In.estment per annum
(;eighted A.erage)
Interpretation/

6<
T%pe$ of in:e$tment
Short !erm
In.estment
(/F
Long !erm
In.estment
55F
'oth
3*F
From abo.e table and chart 2e can come to 7no2 2hen increases in
income of in.estor his in.estment also increases and F increase of in.estment
is more than F increase in income0 It means 2hen income of in.estor changes
his portfolio also changes0 So portfolio of in.estor is depend on income of a
in.estor
(. T%pe$ of In:e$tment/
T%pe$ of in:e$tment @re>"enc%
Short !erm In.estment (/
Long !erm In.estment 55
'oth 3*

Interpretation/
Among the total sample si9e 55 per cent in.estors are prefer to in.esting
in long term and (/ percent are prefer to in.estment in short term0 ;here as 3*
per cent of in.estors are preferred to in.est in both long term as 2ell as in short
term in.estment a.enues0
-. @re>"enc% of In:e$tment/

68
@re>"enc% of In:e$tment @re>"enc%
;ee7ly /3
&onthly 3*
=uarterly (6
Half Zearly /*
Zearly //

)
*
/)
/*
()
(*
3)
3*
@
r
e
>
"
e
n
c
%
;ee7ly =uarterly Zearly
Time Period
@re>"enc% of in:e$tment

Interpretation/
!his graph re.eals that 3* percent of in.estors are in.esting monthly> (6 per
cent of in.estors are in.esting ?uarterly0 // per cent of in.estors are in.esting in
a yearly basis 2here as /3 per cent and /* per cent of in.estors are in.esting in
2ee7ly and halfEyearly basis respecti.ely0
,. Ba$i$ of in:e$tment/

+)
Ba$i$ of In:e$tment Percentage
Self Analysis *5
Financial Ad.ice /8
'ro7er Ad.ice //
FIR Ad.ice //
C A Ad.ice *
Ba$i$ of in:e$tment
*5F
/8F
//F
//F
*F
Self Analysis Financial Ad.ice 'ro7er Ad.ice
FIR Ad.ice C A Ad.ice
Interpretation/
From this 2e can come to 7no2 most of the in.estor i0e0 *5F basis of
study is self analysis and remaining 56F of in.estors ta7e ad.ice from ad.isers
such as bro7er ad.ice> financial ad.ice> friends or relati.es ad.ice or charted
account ad.ice for in.estment0 So it sho2s most of the indi.idual in.estor basis
of study is self analysis0
.. In:e$tment pattern affected 0% market mo:ement/

Option$ @re>"enc%
Zes *3
Co (+

+/
@actor$ infl"ence on in:e$tment
deci$ion
Ris7
In.ol.ed
/6F
Return they
gi.e
3)F
Past
performance
()F
Future
$ro2th
(5F
1ther factor
/)F
Ris7 In.ol.ed Return they gi.e Past performance
Future $ro2th 1ther factor
In:e$tment pattern affected 0% market
mo:ement
Zes
66F
Co
35F
Zes Co
Interpretation/
From this 2e can come to 7no2 that *3 in.estors in.estment
pattern 2ill affect if any mar7et mo.ement ('S, inde-> inflation rate etc)0 So
ma4ority of the in.estor:s in.estment pattern 2ill affect if any changes in the
mar7et0 &ar7et mo.ement is .ery important factor for changing in in.estment
pattern
1. @actor$ infl"ence to choice :ario"$ in:e$tment alternati:e$/


@actor$ infl"ence Percentage
Ris7 In.ol.ed /6
Return they gi.e 3)
Past performance ()
Future $ro2th (5
1ther factor /)
+(
Interpretation/
'y seeing this findings 2e can say 3)F of in.estor in.estment decision is
depend on return on in.estment> second important factor is future gro2th and
past performance of the company0 /6F of in.estor:s in.estment is based on ris7
in.ol.ed0 Choice of factor is changing from in.estor to in.estor0
I. In:e$tor$J preference in SHCILJ$ Prod"ct/
SHCILK$ Prod"ct @re>"enc% <in G=
R'I 'onds 5*
Stoc7 %irect (6
Fund in.est /8
Insure /)
)
/)
()
3)
5)
*)
@
r
e
>
"
e
n
c
%

<
i
n

G
=
R'I
'onds
Stoc7
%irect
Fund
in.est
Insure
SHCILK$ Prod"ct
In:e$tor$K Preference in SHCILK$
Prod"ct

+3
Interpretation/
SHCIL:s clients are gi.en more preference to in.est in R'I 'onds than
any other products of SHCIL0 And the second preference 2as AStoc7 %irect:
2hich is follo2ed by AFund In.est: and AInsure: respecti.ely0
!3. Compari$on 0et;een in:e$torJ$ in:e$tment option in Bangalore and
Bh"0ane$;ar/
In:e$tment *:en"e$ Bangalore Bh"0ane$;ar
,?uity 55 (/
%ebenture I 'onds 8 /(
'an7 %eposits /< 38
Insurance /3 /*
PPF + <
$old @ Real ,state * 3
1thers 5 (
)
/)
()
3)
5)
*)
f
r
e
>
"
e
n
c
%

<
i
n

G
=
,
?
u
it
y
%
e
b
e
n
t
u
r
e
I

'
o
n
d
s
'
a
n
7
%
e
p
o
s
it
s
I
n
s
u
r
a
n
c
e
P
P
F
$
o
ld

@
R
e
a
l
,
s
t
a
t
e
1
t
h
e
r
s
In:e$tment *:en"e$
In:e$tor$K preference in Bangalore and Bh"0ane$;ar
'angalore
'hubanes2ar
Interpretation/
!he abo.e graph re.eals that> the in.estors of 'angalore are prefer to in.esting
more in e?uity> 2here as in 'hubanes2ar in.estors are prefer to in.est more in
ban7 deposits> postal sa.ings etc0 In both city in.estment in insurance is the
third preference of the in.estors0

+5
!!. Compari$on of In:e$tment in SHCILJ$ Prod"ct in Bangalore and
Bh"0ane$;ar/
8ear
Bangalore Bh"0ane$;ar
Fund In.est Stoc7 %irect Fund In.est Stoc7 %irect
())3 36< //(3 (6* 5/*
())5 65) /35* *)) *(<
())* 8)) /*/6 +3* 63)
)
())
5))
6))
<))
/)))
/())
/5))
/6))
C
u
m
b
e
r

o
f

A
c
c
o
u
n
t
s
Fund
In.est
Stoc7
%irect
Fund
In.est
Stoc7
%irect
'angalore 'hubanes2ar
In:e$tment in SHCILK$ Prod"ct in Bangalore
and Bh"0ane$;ar
())3
())5
())*
Interpretation/
!he abo.e graph re.eals that> there are more accounts in Stoc7 %irect than
Fund In.est in both 'angalore and 'hubanes2ar0 And there are more account
holders in both of these products at 'angalore than 'hubanes2ar0

+*


S"mmar% and @inding$
*0/ Findings
*0/0/ 1n the products and ser.ices of SHCIL
*0/0( 1n in.estment decision of in.estors
*0( Suggestions
*03 Limitation and scope for further research

P*RT 6
+6
-.! @inding$/
-.!.! On the Prod"ct$ and $er:ice$ of SHCIL
SHCIL is India:s largest and oldest %P ser.ice> 2hich is customer friendly
and it is free from any misappropriation> scandals0 Recently S,'I 2arns
some %P ser.ices for in.ol.ing illegal acti.ities0
SHCIL pro.iding 2ide range of products and ser.ices but all the products
and ser.ices of SHCIL is not a2are to the client0
SHCIL 'angalore recently starts the bro7ing ser.ice0 'ut only (*F of
clients are a2are about the bro7ing ser.ice according to obser.ation and
most of them are not a2are about it0
In SHCIL> +*F clients are using %P ser.ice only 2here as /* to () F are
a.ailing the other products and ser.ices0
-.!.# On in:e$tment deci$ion of in:e$tor
Income le.el of an in.estor is an impotent factor 2hich affects portfolio of
the in.estor0
5* per cent of in.estors are preferred to in.est in long term a.enues
2here as 3) per cent of in.estors are preferred to in.est in both long
term and short term a.enues0
** percent of the in.estors are preferred to in.est in either monthly or
?uarterly basis0
6) per cent of the in.estors are in.esting on the basis of selfEanalysis0

++
'usiness paper is an important source of study for the in.estor0 Apart
from this> business channels and 2eb sites are some other important
sources of study0 0
"eturn on investment and risk involved is most important factor for the
in.estor before ta7ing any in.estment decisions0
"eturn on investment and credit ratin! are t2o important factors for those
in.estor 2ho are interested to in.est in 'ondsI%ebenture0
#ast record> dividend record and future !ro$th of the firm are the
important factor for those in.estors 2ho are interested to in.est in e?uity0
Higher income le.el groups and ris7 ta7ing in.estors are preferred to
in.est in e?uity rather than any other in.estment a.enues0
&iddle age group in.estors are preferred to in.est in e?uity> 2here as the
old age group in.estors are preferred to in.est in R'I 'onds or any other
type of ta- sa.ing bonds0
Lo2er income le.el groups are not preferred to ta7e ris7 and they choose
ban7 deposits> post office sa.ings and insurance as a better in.estment
option0 !hey also loo7 for ta- sa.ing in.estment a.enues0
$enerally those in.estors 2ho are in.ested in e?uity> are personally
follo2 the stoc7 mar7et fre?uently i0e0 in daily basis0 'ut those 2ho are
in.ested in mutual funds are 2atch stoc7 mar7et 2ee7ly or fortnightly0
In 'angalore> in.estors are more a2are about .arious in.estment
a.enues and the ris7 associated 2ith that0 'ut in 'hubanes2ar> in.estors
are more conser.ati.e in nature and they prefer to in.est in those
a.enues 2here ris7 is less li7e ban7 deposits> small sa.ings> post office
sa.ings etc0
-.# S"gge$tion$/

+<
Client a2areness program has to be conducted by SHCIL for Stoc7
'ro7ering Ser.ices> because most of the clients are una2are about this
ne2 ser.ice0
SHCIL should be start CS, trading and deri.ati.e trading0
Since the intent and 2eb based communication is getting popular SHCIL
should update 2eb site fre?uently and pro.ide information up to date
SHCIL can rethin7 on its tariff rate0 'ecause the charges are
comparati.ely little higher than the ser.ice charged by its competitors
and also customers are e-pressing dissatisfaction to2ards its tariff rate0
Since the in.estors e-pect better ser.ices from SHCIL> it should pro.ide
more .alue added ser.ices li7e deri.ati.e trading> CS, trading etc0
As in.estors: in.estment decision is based on the study of different
sources> SHCIL should start gi.ing ad.ertisement in business ne2spaper
and in business maga9ine0
&ost of the in.estor:s portfolio is di.ersified so there is huge scope in
.arious ne2 ser.ices0 So SHCIL should come 2ith ne2 intermediaries
ser.ices li7e add more mutual funds in to its AFund In.est: etc0
SHCIL should e-pand its business by setting up of ne2 branches in
.arious places 2here they ha.e lot of client for e-ample 'i4apure0
-.& Limitation and $cope for f"rther re$earch/
!he study is conducted by ta7ing a limited number of sample si9e 2hich
is stated earlier0 And this study reflects the perceptions of those in.estors 2ho
are residing in 'angalore and 'hubanes2ar0 !here might be a chance that the
perceptions of the in.estors: of different cities are .aried due to di.ersity in
social life> li.ing pattern> income le.el etc0

+8

Learning O"tcome$
60/ 1n in.estment a.enues
60( 1n %P ser.ices


P*RT 6I
<)


</
Learning O"tcome$
!his pro4ect has helped me to learn ho2 to use theoretical 7no2ledge in
practical 2orld and to 7no2 the methods follo2ed by the corporate 2orld to deal
2ith different situation0 I also learnt the follo2ing aspects related to in.estment
a.enues and %P
,.! On in:e$tment a:en"e$/
%ifferent type of in.estment a.enues
Ris7 in.ol.ed in different in.estment a.enues
'enefits and profits by in.estment
,.# On )P Ser:ice/
Facts related to depository
'asic function of %epository Participants

<(


Reference$ and Bi0liograph%
+0/ Articles
+0( 'oo7s
+03 ;ebsites

P*RT 6II
<3
Reference$ + Bi0liograph%/
..! *rticle
Capital &ar7et Re.ie2 ())3E)5> Published by SHCIL
..# Book$
@inancial 7anagement> PRASACCA CHAC%RA> 6
th
edition
@inancial 7anagement> KHAC @ MAIC> 3
rd
edition
Sec"rit% *nal%$i$ and Portfolio 7anagement > FISCH,R @ M1R%AC
Re$earch 7ethodolog%? %a.id 0R0 Cooper and Schindler
..& He0$ite$
2220shcil0com
2220icicidirect0com
2220nseindia0com
2220economictimes0com

<5


*nne2"re
<0/ =uestionnaire

P*RT 6III
<*
*nne2"re
L5ESTIONN*IRE
Kindly fill up the follo2ing ?uestionnaire0
/0 Came
(0 ,ducational le.el
PGC $raduation PostE$raduation
Professional 1thers (Please Specify) [[[[00
30 Age
Less than () () " 3) 3/ " 5) 5/ " 6)
&ore than 6)
50 Cumber of persons in the family
/ ( 3 5 &ore than 5
*0 1ccupation
,mployed
Pri.ate Sector
Public Sector
Self employed
'usiness
Profession (CAILa2yerI%octorI1thers [[[[[)
Cot employed
Retired
60 Annual income and sa.ings
a0 Annual income (in Rs0)
Less than / la7h
/ " ( la7hs
( " 30* la7hs

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30* " * la7hs
&ore than * la7hs
b0 Annual sa.ings (in Rs0)
Less than /)>)))
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3)>))/ " 5)>)))
5)>))/ @ abo.e
+0 In.estment a.enues that you li7e to choose
,?uity FI 'onds Corporate %ebenture
Company Fi-ed %eposits 'an7 %eposits
PPF Life Insurance Small I PostEoffice Sa.ings
$old Real ,state &utual Funds
1thers [[[[0
<0 A.erage amount (in Rs0) in.ested in a year in the follo2ing a.enues
,?uity FI 'onds Corporate %ebenture
Company Fi-ed %eposits 'an7 %eposits
PPF Life Insurance Small I PostEoffice Sa.ings
$old Real ,state &utual Funds
1thers [[[[0
80 Are you a short term or long term in.estorJ
Short term Long term 'oth
/)0 State reason behind choice of your in.estment options
Self " A2areness Financial Ad.isors 'ro7er:s Ad.ice
Friends: or Relati.es: Ad.ice &edia
//0 ;hat is your fre?uency of in.estmentsJ
;ee7ly &onthly =uarterly
HalfEyearly Zearly

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/(0 %o you personally follo2 the stoc7 mar7etJ
Zes Co
/30 If yes> then ho2 fre?uently do you 2atch mar7etJ
%aily !2ice a 2ee7 ;ee7ly Fortnightly
/50 Ha.e you in.ested in the SHCIL:s ProductJ
Zes Co
/*0 If yes> then ho2 much (in Rs0) you in.ested in SHCIL:s ProductJ
Fund In.est R'I 'onds Stoc7 %irect Insure
/60 ;hat 7ind of ne2 productIser.ice 2ould you 2ant SHCIL to pro.ideJ
a0 [[[[[00 b0 [[[[[[0 c0 [[[[[[[00
/+0 %o you ha.e any suggestion to ma7e SHCIL:s productIser.ice betterJ
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