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“DEMAT ACCOUNT OPENING”

PROJECT SUBMITTED TO ANNAMALAI UNIVERSITY,

IN PARTIAL FULFILMENT OF THE REQUIREMENTS


FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION

IN APPLIED MANAGEMENT

By

Dinesh Soni

Enrolment Number : 4740700464

Under the guidance of

Mr. Sunil Asopa

Branch Manager

Arcadia Shares & Stock Brokers Ltd.

Maan Ji Ka Hatha, Paota, Jodhpur

DIRECTORATE OF DISTANCE EDUCATION

ANNAMALAI NAGAR

2009
“DEMAT ACCOUNT OPENING”

PROJECT SUBMITTED TO ANNAMALAI UNIVERSITY,

IN PARTIAL FULFILMENT OF THE REQUIREMENTS


FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION

IN APPLIED MANAGEMENT

By

Dinesh Soni

Enrolment Number : 4740700464

Under the guidance of

Mr. Sunil Asopa

Branch Manager

Arcadia Shares & Stock Brokers Ltd.

Maan Ji Ka Hatha, Paota, Jodhpur

DIRECTORATE OF DISTANCE EDUCATION

ANNAMALAI NAGAR

2009
DECLARATION

I hereby declare that the project entitled “DEMAT ACCOUNT

OPENING” submitted for the Degree of Master of Business Administration in

Applied Management is my original work and the project has not formed the

basis for the award of any degree, diploma, associate ship, fellowship or similar

other titles. It has not been submitted to any other university or Institution for

the award of any degree or diploma.

Place: Jodhpur Name: Dinesh Soni

Date: 05/03/09 Enrolment No.: 4740700464


ACKNOWLEDGEMENT

It is with real pleasure that, I record my indebtedness to my project

Guide, Mr. Sunil Aasopa for his counsel and guidance during the preparation

of this project.

I am grateful to Centre Head Mr. Praveen Mehta for providing me an

opportunity to prepare this report.

I wish to record my sincere and special thanks to Mr.Amit Sharma,

Mr.Ashish

My thanks are due to Mr.Sunil Aasopa, Mr. Hemendra to give me

great and valuable support.

Place: Jodhpur Name: Dinesh Soni

Date: 05/03/09 Enrolment No: 4740700464


TABLE OF CONTENTS

CHAPTER – I

EXECUTIVE SUMMERY

CHAPTER – II

COMPANY PROFILE
 INTRODUCATION
 ORGANISTION STRUCTURE
 INFRA-STRUCTURE SETUP
 PRODUCT & SERVICES

CHPTER – III

DEMAT ACCOUNT

 INTRODUCATION OF DEMAT ACCOUNT


 DEMAT ACCOUNT PROCESS
 REQUERMENT OF DOCUMENTS
 BENEFITS OF DEMAT ACCOUNT

CHPTER – IV

RESEARCH METHODOLOGY

 OBJECTIVES & SCOPE OF STUDY


 DATA ANALYSIS
 SOURCE OF DATA

CHPTER – V

FINDING & ANALYSIS

 PROJECT FINDING
 RESEARCH & ANALYSIS

CHPTER – VI

BIBLIOGRAPHY
CHAPTER – I

EXECUTIVE SUMMARY
EXECUTIVE SUMMARY

An organization is made up of competencies, which we can loosely call

'capital'. Its key components are 'customer capital', 'structural capital' and

'human capital'. Broadly a company's strength arises out of its customer base,

which purchases its products.

The project has broadly been carried in around Jodhpur and Other areas.

In the initial phase I visited a large number of domestic and Multinational

companies in Jodhpur area have and gathered information as far as possible for

the benefit of the project at large. After conducting the study within some

constraints, my findings were as far As transparent but chances of error are

possible as the saying “To err is Human “

In this short report you will find the description of Demat Account

Opening, the process followed and the basic requirements for the process. As

the report progress towards conclusion it gives fair idea about the needs of this

service, prospects, competitors and reason for all with some facts and figures

and supporting articles


CHAPTER – II

COMPANY PROFILE

 INTRODUCATION

 ORGANISTION STRUCTURE

 INFRASTRUCTURE SETUP

 PRODUCT & SERVICES


INTRODUCATION

Arcadia came to life in 1995, right on the wave of a post-liberalisation

market economy. As financial services became a major contributor to economic

growth, Arcadia has steadily shaped into a leading financial service provider.

In 1995, we were a small company with just 5 employees. Today, we

have a market presence across the country, with over 275 branches &

franchaisee outlets. We have established a strong retail network not only in

metros but also in tier two and tier three cities. Traditionally, our operation was

concentrated in fast-moving capital market of Western India. But sensing great

potential, we have launched strong expansion plans in the North and the South.
 ORGANISATION STRUCTURE

Mr. Antony Sequeira


(Founder, Managing Director)

The chief promoter of Arcadia has been associated with capital markets for over
26 years. Mr. Sequeira has a rich 19 years of banking experience with
Corporation Bank & Syndicate Bank. For six years he was the Chief Executive
of M/S Uday S. Kotak, now known as Kotak Securities. Mr. Sequeira is
respected in the organization for being a complete taskmaster. His thrust for
client satisfaction is an energizing force within the organization. He is
completely committed towards making Arcadia a one-stop financial service
provider.

Mr. Nitin Brahmbhatt


(Director)

The director is an arbitrage consultant by profession, with 25 years experience


in the capital market. Between 1985 and 1995, he played the role of a leading
market maker in the Bombay Stock Exchange. He has a rich experience in the
field of arbitrage. The credit for building the arbitrage team for Arcadia goes to
him. It is his innovative ideas that have made Arcadia a leading arbitrage player
in the country. Under his leadership, Arcadia has created a mammoth network
of branches & franchisees.
 INFRA-STRUCTURE SETUP

 Wide branch network of 275+ branches (Covering A, B, C cities &

Remote Locations).

 Well Educated and highly trained “Feet on Street” to undertake Individual

Personal Contact.

 Rapid expansion as per user location and user requirements.

 Working symbiotically without disturbing clients set up


 PRODUCT & SERVICES

Since Arcadia is a service based company therefore the product are of

nothing but the service. Provide pre and post disbursement/activation turnkey

solutions so as to bridge information the gap between the principals and their

prospective/existing customers.

This systematic presence-building and efficient delivery of service has put

Arcadia among the fastest growing retail broking houses in the country, with

memberships in:

(1) NATIONAL STOCK EXCHANGE OF INDIA (NSE)

The National Stock Exchange of India Limited (NSE) is a Mumbai-

based stock exchange. It is the largest stock exchange in India in terms of daily

turnover and number of trades, for both equities and derivative trading. Though a

number of other exchanges exist, NSE and the Bombay Stock Exchange are the

two most significant stock exchanges in India, and between them are responsible

for the vast majority of share transactions. The NSE's key index is the S&P CNX

Nifty, known as the Nifty, an index of fifty major stocks weighted by market

capitalization.
(2) BOMBAY STOCK EXCHANGE (BSE)

The Bombay Stock Exchange Limited (BSE) (formerly, The Stock

Exchange, Mumbai; popularly called The Bombay Stock Exchange, or BSE) is

the oldest stock exchange in Asia and has the greatest number of listed

companies in world, with 4700 listed as of August 2007. It is located at Dalal

Street, Mumbai, India. On 31 December 2007, the equity market capitalization of

the companies listed on the BSE was US$ 1.79 trillion, making it the largest

stock exchange in South Asia and the tenth largest in the world.

(3) MULTI COMMODITY EXCHANGE (MCX)

Multi Commodity Exchange (MCX) is an independent commodity

exchange based in India. It was established in 2003 and is based in Mumbai. It

has an average daily turnover of around US$ 1.55 billion [citation needed]. MCX

offers futures trading in Agricultural Commodities, Bullion, Ferrous & Non-

ferrous metals, Pulses, Oils & Oilseeds, Energy, Plantations, Spices and other

soft commodities. MCX has also setup in joint venture the National Spot

Exchange a purely agricultural commodity exchange and National Bulk Handling

Corporation (NBHC) which provides bulk storage and handling of agricultural

products.
(4) NATIONAL COMMODITY & DERIVATIVES EXCHANGE(NCDX)

National Commodity & Derivatives Exchange Limited (NCDEX) is an

online commodity exchange based in India. It was incorporated as a private

limited company incorporated on April 23, 2003 under the Companies Act, 1956.

It obtained its Certificate for Commencement of Business on May 9, 2003. It has

commenced its operations on December 15, 2003. NCDEX is a closely held

private company which is promoted by national level institutions and has an

independent Board of Directors and professionals not having vested interest in

commodity markets.

(5) DEPOSITORY PARTICIPANT OF CDSL

In India, a Depository Participant (DP) is described as an agent of the

depository. They are the intermediaries between the depository and the investors.

The relationship between the DPs and the depository is governed by an

agreement made between the two under the Depositories Act. In a strictly legal

sense, a DP is an entity who is registered as such with SEBI under the provisions

of the SEBI Act. As per the provisions of this Act, a DP can offer depository-

related services only after obtaining a certificate of registration from SEBI.


(6) ASSOCIATION OF MUTUAL FUNDS IN INDIA (AMFI)

A Mutual Fund is a trust that pools the savings of a number of investors

who share a common financial goal. The money thus collected is then invested in

capital market instruments such as shares, debentures and other securities. The

income earned through these investments and the capital appreciation realized are

shared by its unit holders in proportion to the number of units owned by them.

Thus a Mutual Fund is the most suitable investment for the common man as it

offers an opportunity to invest in a diversified, professionally managed basket of

securities at a relatively low cost. The flow chart below describes broadly the

working of a mutual fund:


CHAPTER – III

DEMAT ACCOUNT

• INTRODUCATION OF DEMAT ACOUNT

DEMAT ACCOUNT PROCESS

• REQUREMENT OF DOCUMENTS

• BENEFITS OF DEMAT ACCOUNT


INTORDUCATION OF DEMAT ACCOUNT

In India, a demat account, the abbreviation for dematerialized account, is a

type of banking account which dematerializes paper-based physical stock shares.

The dematerialized account is used to avoid holding physical shares: the shares

are bought and sold through a stock broker.

This account is popular in India. The Securities and Exchange Board of India

(SEBI) mandates a demat account for share trading above 500 shares. As of April

2006, it became mandatory that any person holding a demat account should

possess a Permanent Account Number (PAN), and the deadline for submission of

PAN details to the depository lapsed on January 2007.

• DEMAT ACCOUNT PROCESS

1 Fill demats request form (DRF) (obtained from a depository participant or


DP with whom your depository account is opened).
2. Deface the share certificate(s) you want to dematerialize by writing across
Surrendered for dematerialization.
3. Submit the DRF & share certificate(s) to DP. DP would forward them to
the issuer / their R&T Agent.
4. After dematerialization, your depository account with your DP would be
credited with the dematerialized securities.
• REQUREMENT OF DOCUMENTS

The extent of documentation required to open a demat account may vary

according to your relationship with the institution. If you plan to open a demat

account with a bank, a savings, current and, or other account for which the holder

have been issued a check book, such holder has an edge over the non-account

holder. In fact, banks usually offer additional incentives to customers who open a

demat account with them. Along with the application form, your photographs

(with co-applicants) and proof of identity/residence/date of birth have to be

submitted. The DPs also ask for a DP-client agreement to be executed on non-

judicial stamp paper. Here is a broad list:

- A canceled check, preferably MICR

- Proof of Identification

- Proof of Address

- Proof of Pan card (mandatory)

- Recent photographs, one and, or more

For proof of identification and, or address self-attested facsimile copies of PAN

card, Voter’s ID, Passport, Ration card, Driver’s license, Photo credit card,

Employee ID card, Bank attestation, latest IT returns and, or latest

Electricity/Landline phone bill are sufficient. While they only ask for

photocopies of the documents, they will need the originals for verification.
• BENEFITS OF DEMAT ACCOUNT

- A safe and convenient way to hold securities;

- Immediate transfer of securities;

- No stamp duty on transfer of securities;

- Elimination of risks associated with physical certificates such as bad delivery,

fake securities, delays, thefts etc.;

- Reduction in paperwork involved in transfer of securities;

- Reduction in transaction cost;

- No odd lot problem, even one share can be sold;

- Nomination facility;

- Change in address recorded with DP gets registered with all companies in

which investor holds securities electronically eliminating the need to correspond

with each of them separately;

- Transmission of securities is done by DP eliminating correspondence with

companies;

- Automatic credit into demat account of shares, arising out

bonus/split/consolidation/merger etc.

- Holding investments in equity and debt instruments in a single account.


CHAPTER – IV

RESEARCH METHODOLOGY

 OBJECTIVES OF STUDY

DATA ANALYSIS

SOURCE OF DATA
 OBJECTIVES OF THE STUDY

• Spread awareness about this process.

• Find out the companies which like to adopt this technique.

• Find out the factors which influence the companies.

• What the companies are looking from Demat Account?

• Gap Analysis between Prospective Customers and Broker Agencies

 DATA ANALYSIS

This part of the chapter consists of research work which work which has been

undertaken by the researcher before discussing in detail let us have the clear view

of some basic concept, Marketing, Marketing Research, Meaning of Survey & its

Methods, Meaning of Feedback how it is important

There are two types of Research Method.

1) Survey Method

2) Experimental Method

Survey Method

The Survey method is complex operations which require some technical

knowledge. Usually three general methods are used for conducting this survey

method they are as follows,


(i) Interview/Questionnaire

(ii) Mail Survey

(iii) Telephonic Survey

Here in this research work survey method has been widely executed the three

phase of this survey method i.e., personal interview/questionnaire, mail survey,

telephonic survey.

Experimental Method

This method is more related to the production aspects of an organization. The

quality of the ultimate result of continuous research and experiments.

 SOURCE OF DATA

Data’s are the useful information or any forms of document designed in a

systematic and standardize manner which are used for some further proceedings.

One of the important tools for conducting marketing research is the availability of

necessary and useful data. Some time the data are available readily in one form or

the other and some time the data are collected afresh. The sources of information

fall under two categories, Internal Sources and External Sources.


In this particular project the major sources were as follows:-

 Competitive Study

 Corporate Presentation

 Objections and their Possible Solutions

 Association with National and International Clients/Partner

 While providing customized solutions we learn more

There are two type of source used in project.

A. Internal Sources

A business organization has definitely to keep certain records such as financial

accounting records, sales records, and other information relating to the business

process, these records provides ample information, good use can be made by the

various information which are organization usually keeps for its own purposes in

the future.

B. External Sources

When the information or any forms of document are collected from outside the

organization, it basically happens when the internal records are insufficient and

the required information is not readily available, the organization will have to

depend on the external sources. Here in this case the external sources are internet,
magazine, paper cutting etc. In external sources the research has been broadly

divided in to two categories.

CHAPTER – V

FINDING & ANALYSIS

 PROJECT FINDING

 RESULT OF SURVEY
 PROJECT FINDING

• Small players/New players have also shown their interest to avail these

services.

• For many companies, demat account is either an unknown term or not

wants to give time to survey/research people from their busy schedule.

• Cost of availing these services can be barrier for the companies. They

don’t know how much they have to spend to avail these services.

• Companies even don’t know much about the players who provide these

kinds of services.

• It is a need of the hour because the dynamics of the Industry are changing.

• Many companies are interested in this service but they don’t know about

the process of the demat account


 RESULTS AS PER THE SURVEY

Total Visit : 80 Customers

Total Converted : 25 Customers

Area of Survey : Jodhpur, Jaipur, Pali etc

Period of Study : 1st June 2008 to 31st July 2008

Studied on Behalf Of : ARCADIA SHARE & STOCK BROKERS

PVT. LTD. MUMBAI


CHPTER – VI

BIBLIOGRAPHY
1. www.arcadia.com

2. www.nse.com

3. www.bse.com

4. Company Manuals

5. My Special thanks to Google.com

6. Company Annual Report

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