27892958 stock holding corp of india ltd

8/9/2019 27892958 Stock Holding Corp of India Ltd

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MASTER OF FINANCE AND CONTROL

BANARAS HINDU UNIVERSITY

SUMMER TRAINING REPORT

ON

PERCEPTION OF CUSTOMERS

TOWARDS SHCIL AND ITS PRODUCTS

SESSION: 2008-10

Under the Supervision of :

Prepared By:

Mr. Kartikanand Jaiswal

Jay Prashant Ekka


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Branch Manager, SHCIL

MFC 3rd Semester

Kamachha, Varanasi.

BHU, Varanasi.

ACKNOWLEDGEMENT

Working in an organization as a trainee provides a medium to

look into and experience the practices and procedures of the

corporate sector. The Stock Holding Corporation of India Ltd. gave

me a lot of exposure of the capital market. During my training

period I received unconditional help my every member of theStock Holding Corporation.

Firstly, I would like to express my gratitude to Prof. Shyam

Chandra (Dean, Faculty of Commerce, BHU) and to Prof B. Jha for

their efforts to place me at SHCIL, Varanasi.

I am also thankful to Mr. Manu Raj Rai (Manager, SHCIL, Varanasi)

for permitting me to work as a trainee in SHCIL. My sincere thanksto Mr. Karthikanand Jaiswal (Branch Manager, SHCIL) for giving his

whole hearted support during my training period and providing

me with valuable information. I am equally obliged to Mr.

Rahul Singh for his guidance, cooperation and inspiration.

Finally, I would like to thank my friends, customers of SHCIL and

all the people who helped me in the successful completion of my

project.


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Jay Prashant

Ekka

MFC, 3rd

Semester

Faculty of Commerce, BHU.

PREFACE

In a professional course like MFC the significance of practicalknowledge through summer training is imperative as one gets an

opportunity to learn about a wide range of corporate activities.

Depositories in India till now have made way for the elimination of

market risk associated with physical holding in the settlement of

securities by providing a highly efficient clearing and settlement

system. Having pioneered dematerialization Stock Holding

Corporation of India ltd. is the first Depository Participant (DP)which is registered with the National Securities Depositories Ltd.

It has been my best and sincere effort to collect information from

various sources to make this project effective. Due to shortage of

time I am unable to give a detailed report but I have tried my

level best to do justice.

In todays competitive environment of depository services an

attempt is made to understand the trading and settlement of

securities through this project work. Any errors and omissions

that might have crept in are totally unintentional. I shall always

be grateful to all who post their valuable comments on this report.


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CONTENTS

PART 1:

Introduction to SHCIL

Dematerialization Meaning

Procedure

Re - materializ ation Introduction

Features

Procedure

Precaution

Depository Introduction

Advantages

Bank-Depository-An Analog

Services provided by depository


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Depository Participant (DP) Introduction

Opening an Account with DP

Depository in India NSDL

CDSL

PART 2:

Product s of SHCIL

Add Shares Equibuy

Fund Invest

GOI Bonds

Insurance

Stock Direct

Pension Funds

Services of SHCIL Custodial Services

Depository Participant Services

DEMAT

Pledge

Derivatives Services

Clearing Member

NRI Services

SWOT Analysis

PART 3: Project Objective

Research Methodology


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Analysis of Questionnaires

Consumer View Chart in Relation to SCHIL

Conclusion and Suggestion

Annexure

PART 1


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INTRODUCTION TO SHCIL

Stock Holding Corporation of India ltd. (SHCIL) was incorporated

at the special initiative of the government of India as a public ltd.

Company in 1986. It has been jointly promoted and owned by the

all India banks and financial institutions, viz., LIC, GIC and its

subsidiaries, ICICI bank, UTI, IDBI, IFCI and IIBI, all leaders in their

fields of business.

SHCIL began by offering custodial and post trading services

adding depository services and other services to its portfolio over

a period of time.

SHCIL has established itself in India as a one-stop solution

provider in the financial services domain.

SHCIL VALUES

Safety and efficiency of operations is a hallmark of SHCIL.

Professionalism and integrity.

Customer first.

Relationship building.

Commitment to quality irrespective of asset size.


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WHY WOULD YOU PREFER SHCIL AS A

SERVICE PROVIDER

Well integrated front and back office, paper and electronic

systems. A focused client relation team to manage your

needs and queries. A single point contact for your comfort.

In-house capability to address all it needs in terms of

software development, maintenance, back-office processing,

database administration, network maintenance, backups and

disaster recovery.

Multilevel security is maintained in software, applications

and guards to access to various data, client and internal

reports.

Expertise in running processes using digital signatures.

Regular audits, internal and external, by SEBI, depositories,

clients and compliance to rules and regulations.

Constant review and benchmarking of processes to ensure

adherence to global best practices.

Insurance cover with international re-insurance.

Full confidentiality of business operations.


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DEMATERIALIZATION

Dematerialization is a recently introduced process by which share

certificates are converted into electronic form. If you own shares

of a company then you must have the possession of the share

certificates. Dematerialization means surrendering the physical

form of shares to a depository and receiving the shares

electronically.

A depository is like the central bank of the country and depository

participants (DPs) are like the banks with which you can open an

account so as to enable the depository to credit your account with

these shares.

According to the securities and exchange board of India (SEBI)

guidelines- banks, custodians and stock-brokers can become DPs.

An investor submits his shares to the DP who will in turn send the

shares to the company for dematerialization. This is a process by

which the company cancels the physical shares and credits your

account with an equal number of shares. If you are holding shares

for many years it is quite likely that the company may ask for a

reconfirmation of your signature as there may be some

differences in the signatures in their records and your currentsignature.

Once the account is opened and shares are dematerialized buying

and selling of these shares is done through this account. The DP

gives each investor or account holder a passbook (just like a


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bank passbook) or a statement of holdings which is regularly

updated. When shares are converted into the electronic form they

will be credited to your account and if they are sold they will be

debited. At the end of every fortnight you will receive a statement

of account showing the number of shares debited and creditedinto your account.

When trading is done through the electronic mode investors have

to pay fees similar to the brokerage. However the charges are

lower than the brokerage as the physical counting of shares is

absent.

While it is yet not compulsory that all the shares listed on the

stock exchanges are dematerialized the NSDL regularly

announces the companies whose shares have to be compulsorilydematerialized. But there is a steady increase in the number of

companies trading in the dematerialized shares.

Overall, it is said that the benefits of having a dematerialized or

book-entry holding through an account are:

Modernism-electronic transactions take full account of modern IT

facilities.

Velocity of transactions-the transfer of securities by mereaccounting entries allows for a rapid and efficient disposition of

interests.

Security-risk associated with physical securities such as delay or

loss in transit, theft and mutilation are eliminated.

The concept of an odd lot in respect of dematerialized securities

stands abolished as any amount can be a market lot. Sometimes

dematerialized securities attract lower margin and lower interest

rates compared to physical securities.

IS DEMATERIALIZATION OF SECURITIES COMPULSORY ?

According to the depositories act, 1996, an investor has the

option to hold securities either in physical or electronic form.


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However, SEBI has notified that settlement of trades in listed

securities should take place only in the DEMAT mode. Although,

trades up to 500 shares can be settled in physical form, physical

settlement is virtually not taking place for the apprehension of

bad delivery on account of mismatch of signatures, forgery ofsignatures, fake certificates, etc.

PROCEDURE FOR DEMATERIALIZATION

Open a DEMAT account with DP.

Fill the DEMAT requisition form (DRF) and submit the same

with the physical certificate/s to the DP for dematerialization. DP defaces and sends the certificates to the issuer/registrar

who credits an equivalent number of securities in the DEMAT

account maintained by CDSL.

For each ISIN, a separate DRF has to be used.

REMATERIALIZATION

Re-materialization is the process by which a client can get hiselectronic holdings converted into physical certificates. The client

has to submit the re-materialization request to the DP with whom

he has an account. The DP enters the request in its system which

blocks the clients holdings to that extent automatically. The DP

releases the request to NSDL and sends the request form to the

issuer/R&T agent.

Thereafter, the clients blocked balances are debited.

FEATURES

A client can rematerialize his dematerialized holdings at any

point of time.

The re-materialization process is completed within 30 days.


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The securities sent for re-materialization cannot be traded.

PROCEDURE FOR REMATERIALIZATION

The client will submit a request to the DP for re-

materialization of holdings in its account.

On receipt of the request form the DP will verify that the

form is duly filled in and issue to the client, an

acknowledgement slip, signed and stamped.

The DP will verify the signature of the client as on the form

with the specimen available in its records.

If the signatures are different the DP will ensure the identity

of the client.

If the form is in order the DP will enter the request details in

its DPM (software provided by NSDL to the DP). While

entering the details if it is found that the clients account

does not have enough balance, the DP will not entertain the

request.

The DP will intimate the client that the request cannot be

entertained since the client does not have sufficient balance.

If there is sufficient balance in the clients account the DPwill enter the request in the DPM and the DPM will generate

a re-materialization request number (RRN).

The RRN so generated is entered in the space provided for

the purpose in the re-materialization request form.

Details recorded in the RRN should be verified by a person

other than the person who entered the data. The request is

then released to the DM by the DP.

The DM forwards the request to the issuer/R&T agentelectronically.

The DP will fill the authorization portion of the request form.

The DP will then dispatch the request form to the issuer/R&T

agent.


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While processing the request, the issuer /R&T agent may

report some objections. Depending on the nature of

objection, the issuer/R&T agent may reject the request or

process it partially, seeking rectification for the remaining

and send an objection memo to the DP. The issuer/R&T agent accepts the request for re-

materialization prints and dispatches the certificates to the

client and sends electronic confirmation to the DM.

The DP must inform the client about the changes in the

client account following the acceptance of the request.

PRECAUTIONS

The client has to mention the lot type in the re-

materialization request form.

Securities sent for re-materialization cannot be traded.

Before initiating a re-materialization request in a security,

the client must ensure that he has sufficient free balances in

that security in his depository account.

DEPOSITORY

INTRODUCTION

A depository is a facility for holding securities which enables

securities transactions to be processed by book entry. To achieve

this purpose the depository may immobilize the securities or de-

materialize them (so that they exist only as electronic records).

India has chosen the dematerialization route. In India, a

depository is an organization which holds the beneficial ownerssecurities in electronic form through a registered depository

participant (DP). A depository functions somewhat similar to a

commercial bank. To avail of the services offered by a depository

the investor has to open an account with a registered DP.


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ADVANTAGES OF DEPOSITORY SYSTEM

Elimination of bad deliveries and all risks associated with

physical certificates such as loss, theft, mutilation, etc.

No stamp duty.

Immediate transfer and registration of securities.

Faster settlement cycle.

No risk of buying fraudulent certificates.

No courier/postal charges.

Reduced record keeping.

One investor account for all shares.

DEPOSITORY PARTICIPANT

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-relatedservices only after obtaining a certificate of registration from

SEBI.

SEBI (D&P) regulations, 1996 prescribe a minimum net worth of

Rs. 50 lakhs for stockbrokers, R&T agents and non-banking


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finance companies (NBFC), for granting them a certificate of

registration to act as DPs. If a stockbroker seeks to act as a DP in

more than one depository he should comply with the net worth

criterion separately for each such depository. No minimum net

worth criterion has been prescribed for other categories of DPs.NSDL requires a minimum net worth of Rs. 100 lakhs to be eligible

to become a DP as against Rs. 50 lakh prescribed by SEBI (D&P)

regulations.

OPENING AN ACCOUNT WITH DP

First an investor has to approach a DP and fill up an account

opening form. The account opening form must be supported by

copies of any one of the approved documents to serve as proof of

identity (POI) and proof of address (POA) as specified by SEBI.

Besides, production of PAN card in original at the time of opening

of account has been made mandatory effective from April 01,

2006.

All applicants should carry original documents for verification byan authorized official of the depository participant, under his

signature.

Further the investor has to sign an agreement with DP in a

depository prescribed standard format which details the rights

and duties of the investor and the DP. The DP should provide the

investor with a copy of the agreement and the schedule of

charges for their future reference. The DP will open the account inthe system and give an account number, which is also called BO

ID (beneficiary owner identification number).

The DP may revise the charges by giving 30 days notice in

advance. SEBI has rationalized the cost structure for


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dematerialization by removing account opening charges,

transaction charges for credit of securities, and custody charges

vide circular dated January 28, 2005.

Further, SEBI has vide circular dated November 09, 2005 advisedthat with effect from January 09, 2006 that no charges shall be

levied by a depository on a DP and consequently by the DP on a

beneficiary owner (BO) when a BO transfers all the securities lying

in his account to another branch of the same DP or to another DP

of the same Depository or another depository provided the BO

account/s at transferee DP and at transferor DP are one and the

same, i.e. identical in all respects. In case the BO account at the

transferor DP is a joint account, the BO account at transferee DPshould also be a joint account in the same sequence of ownership.

BANK DEPOSITORY AN ANALOGY

BANK DEPOSITORY

Holds funds in an account. Hold securities in an account.

Transfers funds between Transfers securities between


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accounts on the instruction of

the account holder.

accounts on the instruction of

the account holder.

Facilitates transfer without

having to handle money.

Facilitates transfer of ownership

without having to handle

securities.

Facilitates safe-keeping of

money.

Facilitates safe-keeping of

securities.

SERVICES PROVIDED BY DEPOSITORY

Dematerialization (known as DEMAT) converting physical

shares into electronic form.

Re-materialization (known as REMAT) is reverse of DEMAT,

i.e. getting physical certificates from the electronic

securities.

Transfer of securities change of beneficial owner.

Settlement of trades done on exchange connected to the

depository.

Pledge/hypothecation of DEMAT shares, viz., loan against

shares. Electronic credit in public offerings of the companies.

Non-cash corporate benefits, viz. bonus/rights direct credit

into electronic form.

Depository restricts the risk of fraud.

DEPOSITORIES IN INDIA

Currently there are two depositories operational in the country:

(1)National Securities Depository Limited.

(2) Central Depository Services Limited.


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NATIONAL SECURITIES DEPOSITORY LIMITED

(NSDL)

Although India had a vibrant capital market which is more than a

century old, the paper based settlement of trades caused

substantial problems like bad delivery and delayed transfer of

title till recently. The enactment of depositories act in august

1996 paved the way for establishment of NSDL, the first

depository in India. This depository promoted by institutions of

national stature responsible for economic development of the

country has since established a national infrastructure of

international standards that handles most of the securities held

and settled in dematerialized form in the Indian capital market.

Using innovative and flexible technology systems, NSDL works to

support the investors and brokers in the capital market of the

country. NSDL aims at ensuring the safety and soundness of

Indian marketplaces by developing settlement solutions that

increase efficiency, minimize risk and reduce costs. At NSDL we

play a quiet but central role in developing products and servicesthat will continue to nurture the growing needs of the financial

services industry.

In the depository system securities are held in depository

accounts which are more or less similar to holding funds in bank

accounts. Transfer of ownership of securities is done through

simple account transfers. This method does away with all the risks

and hassles normally associated with paperwork. Consequentlythe cost of transacting in a depository environment is

considerably lower as compared to transacting in certificates.


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CENT R AL DEPOSITORY SERVICES LIMITED (CDSL)

A depository facilitates holding of securities in the electronic form

and enables securities transactions to be processed by book entry

by a depository participant (DP) who as an agent of the

depository offers depository services to investors. According to

SEBI guidelines financial institutions, banks, custodians,

stockbrokers, etc. are eligible to act as DPs. The investor who is

known as beneficial owner (BO) has to open a DEMAT account

through any DP for dematerialization of his holdings and

transferring securities.

The balances in the investors account recorded and maintained

with CDSL can be obtained through the DP. The DP is required to

provide the investor, at regular intervals, a statement of account

which gives the details of the securities holdings and transactions.

The depository system has effectively eliminated paper-basedcertificates which were prone to be fake, forged, counterfeit

resulting in bad deliveries. CDSL offers an efficient and

instantaneous transfer of securities.

CDSL was promoted by Bombay stock exchange limited (BSE)

jointly with leading banks such as State Bank Of India, Bank Of

India, Bank Of Baroda, HDFC BANK, Standard Chartered Bank,

Union Bank Of India and Centurion Bank.

CDSL was set up with the objective of providing convenient,

dependable and secure depository services at affordable cost to

all market participants. Some of the important milestones of CDSL

system are:


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CDSL received the certificate of commencement of business

from SEBI in February, 1999.

Honorable union finance minister, Shri Yashwant Sinhaflagged of the operations of CDSL on July 15, 1999.

Settlement of trades in the DEMAT mode through BOI

shareholding limited, the clearing house of BSE, started in

July, 1999.

All leading stock exchanges like the national stock exchange,

Calcutta stock exchange, Delhi stock exchange, Ahmedabadstock exchange, et al have established connectivity with

CDSL.

At the end of December, 2007, over 5000 issuers have

admitted their securities (equities, bonds, debentures,

commercial papers), units of mutual funds, certificate of

deposits, etc. into the CDSL system.


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PART 2


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PRODUCTS OF FERED BY SHCIL

(A) ADD SHARES

INTRODUCTION

SHCIL arranges loan against DEMAT shares.

Tie-up with reputed banks which offer you the most

competitive interest rates in the market.

You can use the shares in your free account as collateral and

take a loan from any of our empanelled banks. SHCIL completes your documentation and processing and

gives you a cheque within 48 hours of application.

This is a pure value add to your depository account with us.

Add shares are available at SHCIL centers in all the major

cities.

FEATURES

Loan against DEMAT shares held in the DP account with

SHCIL.

Competitive interest rates from a range of banks SHCIL has

tied up with.


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SHCIL processes the entire paperwork required with the

bank.

The service is available at any of over 100 branches of

SHCIL.

ADVANTAGES

Our tie ups with banks give you a wider range of banks to

choose from. This leads to a wider range of specified and

non-specified shares to get loan against.

The add shares team helps you with the paper formalities

precedent to a loan.

You can now get a loan at a competitive interest rates andmargins. This is a resultant of their tie up with a wide range

of banks.

Add shares simplify long-winded loan procedures for you and

facilitates early disbursements of funds.

Add shares are available at any of our branches numbering

over 120.

(B) EQUIBUY

INTRODUCTION

Even after payments have been made we have to wait patiently

to see those shares reflected in the DEMAT account. With the odd

surprise of not seeing them at all which you cannot discount!

As your depository participant SHCIL assures you safe delivery of

shares every time you buy on the exchange. We have lined up a

panel of reputed brokers who process your orders on priority.


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Our positions as the clearing corporations of leading stock

exchanges ensures smooth and sure credits in your account.

An initial advance and timely replenishments into the purchase

advance account take care of the payment for your purchases.

Go through the detailed EQUIBUY procedure and you will see how

EQUIBUY in a one stop shop for your share purchases.

FEATURES

An EQUIBUY instruction from you gets the shares credited

into your account the next day of payout.

Payment for your purchase made from a running account

called purchase advance into which you remit an initial

advance of Rs. 1000 and maintain a minimum balance of Rs.

250 at all times. Choose one or more brokers from a list of 77 brokers

empanelled with SHCIL. Registration with broker is not

necessary if you are already registered under any of our

other product schemes.

Purchase on BSE or NSE.

ADVANTAGES

Buy shares with a single instruction and get an assured

credit of shares into your account the next day of payout.

Leave the settlement procedures and broker interaction to

us.

Affect a faster turnaround of your portfolio.


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EQUIBUY has a very nominal charge attached to it.

An initial advance of Rs. 1000 in the purchase advance

account and replenishments, as and when necessary, take

care of payment for your purchases.

Choose the exchange you want to buy from- BSE or NSE. Choose from a range of 77 SHCIL empanelled brokers to

execute your purchases.

EQUIBUY from the SHCIL center closest to you. Select from

120 plus SHCIL centers across the country.

PROCEDURE

If you are not already registered with one or more of our 77

empanelled brokers under any of our other product

schemes, register yourself by filling up a broker registration

form.

Fill up a remittance slip to open the purchase advanceaccount by making an initial advance of Rs. 1000.

Approach any SHCIL branch and submit a purchase request

slip.

Your request will be good till the end of the day. If the shares

are not purchased before the end of the day your request

lapses and a fresh request can be submitted the next day.

Your purchase request is transmitted to the broker as soon

as you place request. The broker executes the trade and confirms trade details to

SHCIL. The payment for the shares purchased along with the

service charge is made from the purchase advance account.

The shares get credited into your account the next day of

payout.


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TARIFF

On Delivery Basis

0.65% on the value of transaction on delivery basis with a

minimum of Rs. 65 per client per broker settlement.

(C) FUND INVEST

INTRODUCTION

Fund invest is a basket of financial products ranging from fixed

income securities like fixed deposits, infrastructure bonds andcapital gain bonds to variable income securities like initial public

offers (IPOs) of equities and mutual funds. It is an attempt to offer

financial products that that cater to the various investment needs

of our esteemed clients. An effort to guide the investor to a

product portfolio that best suits his risk-return profile. Applications

for investments can be sourced from any of the SHCIL offices.

Apart from guiding our investors to pick up the right combination

of investment instruments we help them in after-sales service byacting as an interlocutor between the investor and the issuer of

the securities. SHCIL is an AMFI registered mutual fund advisor

(ARMFA).

FEATURES


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At present, SHCIL is distributing schemes of 28 different mutual

funds. All these funds offer a wide variety of investment option

depending on the risk appetite of the investor. Some of the major

categories are:

Debt funds: The debt funds have the mandate of investing

primarily in debt papers.

Equity funds: The equity funds have the mandate of investing

primarily in equities.

Balanced funds: The balanced funds have the mandate of

investing both in equities as well as debt papers.

Capital gain bonds come under 54EC capital gains bonds, wherethe investors get exemption from capital gain tax. These are on-

tap issues. At present, SHCIL is distributing capital gain bonds of

rural electrification corporation, national housing bank, small

industries development bank of India and national highway

authority of India. Infrastructures bonds are issued by ICICI bank

and IDBI, with section 88 as the main feature.

Private placements: debt papers issued for private placement

with structural obligations by the state and central governmenttypically targeted for trusts and provident funds are distributed by

stock holding.

Fixed deposits: fixed deposits with high investment rating and

issued by blue-chip corporate are distributed by us. These papers

generally offer 50 to 100 basis points more than bank fixed

deposits of comparable period. At present, we are distributing

IDBI SUVIDHA fixed deposits and HDFC fixed deposits.

Initial Public Offer: IPOs offered by blue-chip corporate can besubscribed from stock holding. Issues recently distributed by us

are Canara Bank, Allahabad Bank, Bharti Tele and I-Flex.

(D) GOI BONDS


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INTRODUCTION

Savings bonds are issued by RBI on behalf of government of India

in the following series:8.0% taxable bonds: These bonds are held in electronic form in an

account called bond ledger account (BLA). Bond ledger accounts

can be opened and operated with RBI designated receiving

offices. SHCIL has been designated as one of the receiving offices

by RBI for this purpose. Subscriptions for savings bonds can be

submitted at any of our branches.

Savings bonds being sovereign in nature are absolutely safe and

an attractive investment option in the current volatile marketsituation.

The following categories can subscribe to savings bonds:

Category of investor

8.0% (taxable)

Individual

His or her individual capacity.

Individual capacity on joint basis.

Individual capacity on anyone or survivor basis. On basis of a minor as father/mother/legal guardian.

HUF (Hindu Undivided Family )


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Charitable Institution

Charitable institution to mean a company

registered under section 25 of the Indian

companies act, 1956.

An institution which has obtained a

certificate of registration as a charitable

institution in accordance with a law in force.

Any institution which has obtained a certificate

from income tax authority for the purpose of

section 80G of the income tax act, 1961.

University

University means a university established or

incorporated by a central, state or provincial

Act and includes an institution declared under

Section 3 of the University Grants Commission

Act, 1956 to be a university for the purposes of

the act.

FEATURES

The salient features of the bonds are listed below:

Feature

Investment limit

8.0% (taxable)

Minimum investment is Rs.

1000 and there is no maximum


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Interest option

Tax benefits

Transferability

Nomination

Repayment

Premature encashment

limit.

Payable half yearly on 1st Feb.,

1st Aug or cumulative onmaturity.

Interest is taxable under IT Act,

1961. Exempt from wealth tax

under Wealth Tax Act, 1957.

Non- transferable, non tradable

and cannot be used as

collateral for borrowings.

Available. Only sole holder or

the surviving holder can

nominate.

Repayable on expiry of 6 years

from date of issue. No interest

would accrue after maturity.

Not available.

ADVANTAGES


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Hassle free maintenance: the GOI bonds held in electronic

form in an account called bond ledger account. This ensures

smooth investing minus paperwork.

Electronic clearing services: you can avail of electronic

clearing system (ECS) services. This ensures automaticcredit of benefits and redemptions when they accrue.

Easy access: you can apply for subscriptions into these

bonds in any SHCIL center across the country.

Dispatch: certificate of holdings are dispatched to the client

through courier on realization of subscription.

PROCEDURE

Subscription is a very simple process. Obtain the application form

from any of SHCIL notified centers across India. SHCIL officials will

assist you in filling up of your application form. Fill up all the

relevant columns provided in the application form. E.g. for ECS

facility, a proof of the ECS account like cancelled Cheque/bankers

certification authenticating the account number and MICR details.

Attach a Cheque /draft/pay order in accordance with the series of

subscription you want to make for the requisite amount in favorof:

Stock holding corporation of India ltd. a/c GOI 8.0% savings

(taxable) bonds,

A certificate of holding will be issued specifying the investment(s)

made under the bond ledger account. The date of investment will

be the date of realization of the instrument(s).

CHECKLIST

Kindly attach the following documents as per the checklist below:

Document

8.0% (taxable)


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ECS mandate documents

Power of attorney documents (if appointed)

HUF declaration (for HUF investors only)

Certificate of identity for address change and nominee

claims

Minor birth certificate, legal or natural guardian

certificate

Form 60 or PAN for investments above Rs. 50000.

Charitable institutions- TDS exemption certificate from IT

department, board resolutions, trust deed

Form 15H (individuals claiming exemption of TDS)

Universities incorporation certificate under section 3 of

the


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University Grants Commission Act, 1956.

(E) INSURANCE

INTRODUCTION

SHCIL, a company promoted by insurance majors and financial

institutions, is a corporate agent of LIC for life insurance products

and NIA for general insurance products. SHCIL has a dedicated

team of IRDA certified insurance advisors to provide all services

relating to insurance. We also provide free professional advice to

clients on need base insurance. SHCIL has 100 odd branches all

over India to take care of all your insurance related queries and

needs.

FEATURES

An insurance policy compensates you against the financial

impact that can arise following loss, damage of destruction

of your property (such as home or vehicle) or your health or

life.

A fundamental principle of insurance is to put you in the

same financial position after a loss or accident that you

enjoyed before the loss. This is relatively easy with repair orreplacement of (say) a car, but is much more difficult with

the loss of life. The insurance policy is a contract and like

any contract contains clauses and conditions. Claims are

settled in accordance with the conditions detailed in the

policy.


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SHCIL distributes life insurance policies of LIC and non-life

insurance policies of NIA.

The service is available at any of over 100 branches ofSHCIL.

LIC PRODUCTS

Key Man KEY MAN INSURANCE

Children Insurance Policy Komal Jeewan plan 159

Jeewan Kishore plan 102

Jeewan Chayya plan 103

Endowment Policy Endowment with Profits plan 14

Limited Payment Endowment

with Profits plan 48

Jeewan Mitra plan 133

Jeewan Anand plan 149

Joint Life (Jeewan Saathi)

Policy plan 89

Retirement plan Retirement plan

NIA PRODUCTS

MEDICLAIM POLICY

FIRE INSURANCE

PRIVATE CAR INSURANCE

HOUSEHOLDERS POLICYMEDICLAIM POLICY

The insurance policy can be used to protect the insured party

against expenses incurred for hospitalization for


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illness/injury/diseases as well as domiciliary hospitalization.

Suitable for:

Each and every person aged between 5 and 75 years of age.

Children aged between 3 months and 5 years have to be

insured along with their parents. Government or private institutions for their employees.

Clubs or associations for their bonafide members.

For more details contact: insurance@stockholding .com

FIRE INSURANCE

This policy offers protection against loss or damage of

property/materials caused by fire. The insurance should be takenfor a maximum amount of its current value after considering

factors of wear and tear as well as depreciation.

Suitable for:

This policy is suitable for every individual or corporate body with

Insurable interest signifies the right to insure. The person or

corporate body must be legally competent to enter into a fire

insurance contract.

PRIVATE CAR INSURANCE

Risks covered

This insurance policy protects the motor vehicle from loss or

damage:

By fire, lightening, self-ignition, explosion, burglary, housebreaking or theft.

Riot or strike.

Flood, earthquake, cyclone or inundation.

Transit by road, air, elevators or lifts.


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Liability for third partys injury or death, third party property

and towards the paid driver too.

Drunken driving.

HOUSEHOLDERS POLICY

The householders insurance policy comprises of ten sections

covering the insureds building, fixtures and fittings, contents,

jewelry and valuables, television sets and VCRS, bicycles,

accompanied baggage as well as personal accident and public

liability benefits. Of these ten, the insured party must opt for at

least three sections and section 2 is compulsory.

If the insured party opts for cover for more than 4 sectionsexcluding compulsory sections, a discount of 15 % is on the non

tariff sections. For more than 6 sections, excluding sections 1 and

2, 20 % discount is offered on non tariff sections.

(F) STOCK DIRECT

INTRODUCTION

Stock direct has changed the way you look at trading in

securities. From your desktop you can now send instructions for

buying/selling shares. A three way hands shake between leading

brokers, national and international banks and SHCIL is the crux of

stock direct.

Stock direct Indias first online trading platform was launched in

1999. Today stock direct is the most secure online tradingplatform which combines encryption technology/digital signature

features. A few clicks will seamlessly check your funds and

security positions, route the order to the broker of your choice

and do the necessary fund and share movements for you.


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FEATURES

A single instruction enables you to combine your trading,fund and shares transfer with SHCIL taking care of the

settlement.

Trade from home on the internet with floppy containing

stock direct software.

Security measures based on encryption and digital signature

technology make your online deals 100% secure.

Open a purchase advance account with SHCIL to facilitate

your fund transfers. Choose the exchange to trade from BSE and NSE.

ADVANTAGES

One Stop Shop

Give a single instruction towards funds confirmation for buy

orders, order routing to your broker and fund and share

movements for settlement purpose.

Convenience

Trade at home through net.

Security

Digital signature technology based on 128 bit encryption makes

your transactions 100% secure.

Cost effective

No minimum value of transaction.

Choice of Stock Exchanges

Buy/sell shares on BSE/NSE


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PROCEDURE

If you already have a DEMAT account with us, fill up aconversion form to convert your DEMAT account to stock

direct. If you do not have a DEMAT account, fill up a DEMAT

account opening form and submit it at any of our branches.

Register with any of our empanelled brokers by filling up the

broker registration form and submit it along with the account

opening/conversion form.

Open account with SHCIL, a running account called the

purchase advance by remitting an initial advance of Rs.1000 by way of Cheque /DD.

TARIFF

Brokerage

0.50% with a minimum of Rs.50 per client per broker per

settlement*.

Normal ISA charges applicable as per clients tariff scheme.Service tax applicable as per GOI notifications.

Media charges (one time): Rs.100 + Service tax.

(G) PENSION FUNDS

INTR ODUCTION

SHCIL offers pension fund administration services to pension fund

trusts. The pension fund scheme administered by the trust could

be a defined benefit or a defined contribution scheme. For both

the scheme types, SHCIL offers the entire range of services that


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include design, development and maintenance of a customized

pension.

FEATURES

Services Offered to a Defined Contribution Scheme

Coordination with all client locations/branches for receipt of

monthly contribution data of members.

Pension contribution account maintained at individual

member level. Reconciling contributions with remittance amounts.

Settling members claim on separation.

Liaoning with insurer for purchase of annuity.

Handling disbursements to members on commutation.

Distribution of earnings to eligible members, annually.

Providing account statement to members annually.

Maintain books of accounts of the trust.

Handling audit and filing tax returns.

Services offered to a defined benefit scheme

Service records of members maintained in electronic form.

System generated pension orders, uniquely referenced and

supported by necessary documents.

Tracking pension orders during the period of survival of

member.

Updating of software to incorporate changes taking fromtime to time in pension rules and regulations.

ADVANTAGES


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Customized pension fund administration software to meet

the unique features of the pension scheme.

Records of members maintained in electronic form to enable

quick access and retrieval of data.

System generated pension orders, uniquely referenced withnecessary supporting documents.

Employees benefit from timely release of pension orders.

Substantial saving in cost achievable through outsourcing.

Benefit from SHCILs vast and rich experience in providing

back office services to the financial services industry as a

whole and in the area of pension administration in a

particular. Application of latest IT technology to smoothen operations

and achieve speedier settlement.

Benefit from the wide network of SHCIL offices across the

country.


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SERVICES OF FERED BY SHCIL

(1) CUSTODIAL SERVICES

INTRODUCTION

SHCIL provides first-rate custodial services to Indias leadingFinancial Institutions, Insurance Companies, Mutual Funds,Foreign Institutional Investors (FIIs), Banks, Indian and ForeignVenture Capital Companies, Funds, PF Trusts & Corporate.SHCIL,s core competence in custodial business spans 18 years,

with a dedicated pool of trained and experienced professionals

working literally round the clock using state-of-the-art computer

systems and world class technology. SHCIL maintains dedicated

communication channels, well connected to client institutions,

stock exchanges, clearing houses and depositories, thus

maintaining process and quality leadership.As a custodian entrusted with sizable assets, SHCIL is

continuously leveraging its scale and capabilities to help its

clients mitigate risk and optimize efficiencies with greater control.

CLEARING AND SETTLEMENT SERVICES

POST TRADING SERVICES

SHCIL has specially trained personnel handling thousands of trade

instructions involving large values on sophisticated systems using

digital signature on STP (straight through processing) systems,

ensuring smooth trade confirmations to stock exchanges. SHCIL

provides the choice of multiple STP service provides enabling


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competitive advantage of efficient settlements. SHCIL seamlessly

monitors trades and ensures failed trade management with

reporting and resolution of mismatches, etc. At SHCIL, a client has

the flexibility of settlement of funds through a wide panel of

banks having RTGS facility.

SETTLEMENT SERVICES

Most of the institutional trades are settled through the clearing

house of the stock exchanges. As a custodian, SHCIL facilitates

timely settlement of funds and securities. Funds are collected

/deposited from/to client and settled with the clearing houses.

Most of the institutional trades are settled in the depository mode.

For the institutional segment alone, SHCIL has a unique clearing

code on the two principal stock exchanges and separate DPM

units on both NSDL and CDSL. This ensures smooth settlement of

transactions on both exchanges/depositories, based on the

deliverables and receivables received by them for each

settlement. Daily verification of settlements (auction/normal)

facilitates smooth reconciliation of settlements of clients tradesand mitigates systemic risk.

For debt market deals SHCIL ensures timely movement of

securities and funds.

For the occasional delivery and receipt of securities in the

physical mode, SHCIL ensures prompt scrutiny, processing and

lodgment of securities with the respective company/ registrar and

transfer agent, with the objective of final transfer to the

purchaser, with objections handling if needed. SHCIL also ensuresthat delivery of physical securities to exchanges is handled

strictly as per exchange regulations.

PHYSICAL CUSTODY (VAULT) SERVICES


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SHCIL has extensive vault capacity with state-of-the-art

technology. This includes tracking with bar-coding techniques.

Certificates are held in customized, fire resistant modular sliding

storage units, with automated location tracking and logs with

tight security.There are comprehensive document tracking and storage systems

in place to hold investments in physical and electronic form.

SHCIL tracks each and every security in the custody with absolute

ease and tracks the status of investments at any point of time.

Other security features include circuit TV, smoke detectors and

fire extinguishers which are installed in the premises. SHCIL relies

on audit trials and physical reconciliation continuously to

reconfirm validity of systemic data. SHCIL also periodically seeksreconfirmations from internal and statutory audit firms for

adherence to the established best practices.

INSTITUTIONAL DP SERVICES

SHCIL has installed dedicated DPMs (depository participant

modules) on both the depositories, viz. NSDL and CDSL.

A dedicated institutional DP team at SHCIL addresses your needfor all core DP services like account opening and maintenance,

conversion of physical holdings into electronic form, settlement of

trade instructions, re-materialization, repurchase and pledge

instructions, providing of holding and transaction statements and

daily reconciliation of clients holdings.

SHCIL also provides special services like electronic credit and

corporate action follow up, reporting of saleable holding positions

required by many fund managers, monitoring of CP redemptions,prepayments and providing customized reports like put/call

forecasts, logical holdings and non equity holding reports.

ASSET SERVICING


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SHCIL has dedicated teams to handle the various aspects of asset

servicing. The corporate actions team ensures forecast of all

corporate actions and benefits accruing on a clients holding,

timely collection of monetary and non monetary benefits and

cover all activities relating to a corporate event like calculation ofentitlements, reconciling with companies/registrars prior to due

date, collection of monetary corporate actions from the premises

of company/registrar and transfer of same to clients. In case of

any shortage, active follow-up with each company. Customized

reporting to clients on the status of corporate actions is done

periodically.

The primary markets team takes care of applications on behalf of

clients for primary market issues, calculates the entitlements,follows up for allotment or refunds and sends customized reports

to clients.

The dedicated redemptions team tracks the payouts of various

debt instruments held by SHCILs clients and monitors put/call

options. This team ensures timely monetary collection and

deposits and keeps track of the outstanding amounts and

reinvestments.

At the heart is the support provided by a highly specializedDatabank team, which is unique to SHCIL. This team tracks over

8500 companies, over 12000 issued securities, 2500 registrars

besides all relevant information available in all leading stock

exchanges and depositories. The team ensures prompt

availability of information on all corporate announcements, ISIN

listings, etc. to the custodial teams and the information solely is

for the benefit of SHCILs clients.

Thus SHCIL is equipped to handle all types of instruments, listedon the BSE and NSE, money market instruments like CPs and CDs,

all kind of debt instruments and unlisted securities.

CLIENT RELATIONSHIP MANAGEMENT


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Every institutional client is assigned to an experienced client

relationship manager who assists in resolving special issues

relating to the client.

Over and above the services offered we have a premium offering

called ADVAIT, an integrated, web based, online reporting systemwhich provides a single window access to institutional reports

with enhanced security features.

(2) DEPOSITORY PARTICIPANT SERVICES

INTRODUCTION

Our depository participant services address your individualinvestment needs. With a parentage of leading financial

institutions and insurance majors and a proven track record in the

custodian business, we have reiterated our past success by

establishing ourselves as the first ever and largest depository

participant in India.

Form a tentative foray in 1998 into the individual investor arena

to servicing around seven lakhs accounts, we have endeavored to

constantly add and innovate to make business a pleasure for you.Our networked branches ensure we are available where you look

out for us. Fourteen depository participant machines (DPMs)

connected to NSDL and seven connected to CDSL ensure fast and

direct processing of your instructions.

Our customer-centric account schemes have been designed

keeping in mind the investment psyche of our clients. Your DP

account with us takes care of your depository needs like

dematerialization, re-materialization and pledging of shares.Matching of your scanned signature on every debit instruction

with a digitally scanned original in our system makes all your

trading transactions absolutely secure. A proactive backup of tour

instructions prior to execution in the depository makes us

oblivious to system crashes.


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At SHCIL we place a very high premium on client reporting.

Periodic statements sent to you keep you informed of your

current account status. Dedicated customer care lines manned by

trained staff answer your queries on DEMAT/trades/holdings. The

latest in client response at SHCIL is Interactive Voice Response(IVR) system for round the system for round the clock information

on your account. Registration on our website, SHCIL interactive,

enables you to check your account related information, stock

market reports and statistics, corporate benefits declared by

companies, real-time quotes of scrips on BSE and NSE and so

much more online.

OPEN ACCOUNT

Before you open your account.

You can collect your account opening form from any of our

branches or download it from our site itself.

As prescribed by depository bye-laws, accounts have to be

opened in the exact order in which the names(s) appear on

the share certificate.

Remember that holding pattern AB is not the same as BA.However, minor differences like abbreviations, spelling

mistakes can be ignored provided signatures recorded with

the registrar/company are the same.

GET YOUR ACCOUNT OPENING FORM DETAILS RIGHT

Check your form against these details:

All columns are filled in. write NA wherever not applicable. Bank account number with complete address and 9 digits

MICR numbers are filled correctly. This will facilitate effective

disbursement of monetary corporate actions into your

account.

Signature of account holders are always in black.


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If you would like to receive credit of shares purchased

directly into your account, mark standing instruction as yes.

YOUR ACCOUNT IS OPENED

Once your account is opened, you will be allotted a client identity

number. You will be sent an operating kit containing:

Details of your account as recorded by SHCIL.

Copy of the agreement entered into with SHCIL.

Delivery instruction by client booklet allotted to your

DEMAT account. This booklet helps you transfer shares from

your account to broker account and other accounts.

Now you are ready to operate your DP account.

IMPO R TANT POINTS

PAN mandatory.

SMS alerts for debits and failed trades provided by NSDL.

CDSL is providing only for debits. Hence clients may get their

mobile number and SMS flag updated.

As per the latest NSDL guidelines, client may give localaddress or correspondence address, depending on his

preference to receive the communications from the

companies.

Complete address of the bank branch, bank account number,

account type and 9 digit MICR number is mandatory. Please

provide the specimen copy of a Cheque for noting the

correct 9 digit MICR code.

At the time of account opening, clients are requested toprovide the proofs for identification and address. The list

may be provided.

Thumb impressions should be attested by a magistrate or a

notary public or a special executive magistrate.


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NSDL does not have the facility to operate a beneficiary

account on either or survivor basis.

The power of attorney should either contain a clause which

gives power to sell or to deal with securities generally or a

clause which gives power to operate depository account.NSDL has provided a sample clause in its circular number:

NSDL/PI/2000/982 dated June 23, 2000. The sample clause is

as follows:

To sell or otherwise deal with or dispose-off and to purchase,

subscribe or otherwise acquire in any manner from the market or

under public or rights issue or otherwise and accept the transfers

of any stock, funds, shares, debentures, government and otherpromissory notes, securities, bonds, annuities or other mercantile

negotiable instruments which shall or may at any time belong to

me or which hereafter be transferred to me, whether solely or

jointly and whether in my own right or having any other interest

of whatsoever nature and however arising and in any capacity

whatsoever including those belonging to others with my name

and for such purposes to sign, execute or endorse all instruments

of transfer and other documents for any purpose whatsoever byvirtue of these present.

NOMINATION FOR DP ACCOUNTS INDIVIDUAL(S)

BENEFICIARY ACCOUNTS

As per the instructions received from the depositories, we

can take cognizance of nomination only if it is submitted in

the prescribed format and the same ahs to be registered

with the depository participant (DP) under a nomination

registration number (NRN). In the absence of NRN, DP will


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not be able to transmit the securities in favor of the nominee

only if it is registered and after duly submitting the

prescribed documents.

If nomination has not been registered, account holders may

submit the nomination form in the prescribed format to thenearest SHCIL center. On registration of the nomination, the

NRN will be communicated to the account holder(s). In case

nomination is not registered, securities can be transmitted to

legal documents as per depository guidelines.

MAINTENANCE

Change in Permanent/Correspondence Address

A request letter (format available on the site) signed by all

the holders are required along with this photocopy of proof

of identification and proof of new address is required. Please

bring the originals with you for verification purpose. Client or

the authorized bearer can visit our branch for the same.

Copy of the last transaction statement received from SHCIL

is also required.

Change in Signature

Request letter (format available) signed by the client. The

new signature to be attested by the bank. The request may

be submitted along with the copy of POI and the photocopy

of the latest transaction statement received from SHCIL.

Addition of P AN /MAPIN

Request letter by the client giving the PAN/MAPIN number.


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Account with Power Of Attorney

These accounts can be operated by both the client and the

POA holder. In case the client has given the POA in favor of

two or more persons, then the mode of operation of the POAholders is also to be mentioned. In case the power of

attorney is to be revoked, a letter signed by the client is

required.

Change of Telephone Number

Request letter signed by all the holders, with a photocopy of

the recent telephone bill and proof of identification of one ofthe holder.

Instructions by Fax

Clients may avail this facility by faxing their delivery

instructions to SHCIL, by executing the fax indemnity. The

format of the indemnity is as follows:

Change in Standing Instruction

For recording any change in the standing instruction (for

receiving direct credits) in the DEMAT account, we require a

letter signed by all the holders.

Change in Power Of Attorney Details

If you have given POA details and you wish to operate the

account yourself, the POA has to be revoked by you in

writing.


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DEATH OF BENEFICIARY ACCOUNT HOLDER(S)

TRANSMISSION OF ACCOUNT

Transmission of account takes place in the event of the death of

the beneficiary account holder(s). There can be three situations intransmission of account. See which category you fit into and

follow the relevant procedure:

(1)When the account has joint holders and one dies.

(2)When the account has a sole holder with a nominee.

(3)When the account has a sole holder without a nominee.

If the shares are transmitted to beneficiary account of surviving

holders and this beneficiary account is in a DP other than

SHCIL. Classify the transmission case into the above categories.

Over and above the documents explained above, the client

master list from the target DP has to be submitted.

Freezing Of Account

An account is frozen /suspended:

Only on your instruction.

By competent authority, i.e., by the depository/SEBI. On receipt of court order.

De-freezing Of Account

De-freezing of an account takes place:

Only on your instruction.

For de-freezing pledge accounts, your instruction has to be

accompanied by bank authorization.

(3 ) DEMAT

De-materialization is the process of conversion of shares from

physical form to the electronic mode. Our dedicated DEMAT team


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enable you to convert your physical holdings/debentures/bonds/G-

SECS into electronic mode in a quick and hassle free manner.

TRANSPOSITION CUM DEMATERIALIZATION

The clients can get the securities dematerialized in the sameaccount if the names appearing on the certificates match with the

names in the DEMAT account but are in different order. This can

be done by submitting the certificates along with the

transposition form and the dematerialization request form (DRF).

TRANSMISSION AND DEMATERIALIZATION

In case of death of one or more of the joint folders, the survivingholder(s) can get the name(s) of the deceased deleted from the

security certificate and get the same dematerialized. Notarized

copy of the death certificate, transmission form as per annexure

OB and the dematerialization request form (DRF) have to be

submitted by the surviving joint holder(s) along with the security

certificates.

As per SEBI, scrips can be divided as: Scrips Eligible For DEMAT

These scrips can be traded either in physical or electronic form.

Scrips falling under compulsory DEM AT

These scrips can be traded only in electronic form.

Submit DEMAT Request Form.

Once your demat account is opened with us and you have

received your client identity number, you can start

dematerializing your shares. You can submit the shares over thecounter at any of our branches. Do go through the tips given on

filling up the DRF to avoid rejection.

Your Shares Are Dematerialized


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When the company gives you credit, these shares will reflect

under free column. Now you can sell these shares. In case

the company is not satisfied with the details furnished, it will

reject the shares.

If your shares have been rejected by the company, SHCIL willforward the shares to you on receiving them from the

company.

(4) PLEDGE

You can pledge or hypothecate your dematerialized shares

against loan or credit facilities extended by a pledgee who also

has an account with a DP.

The Pledge Procedure

Pledgor fills in a form requesting the DP to pledge the shares

and hands it over to the DP.

If the form is complete in all respects, the DP processes the

form and generates a pledge/hypothecation instruction

number for the request.

Securities to the extent of the instruction are debited from

free or locked-in balances and credited as pledged balances

of the Pledgor so that they cannot be used for any

transactions.

The pledgee will submit a form to its DP to accept/reject the

pledge/hypothecation request.

If the pledgee accepts the request by the pledgor, the

acceptance is communicated electronically to the pledgorsDP. Once the pledges DP confirms the acceptance of the

pledge, the pledgor cannot cancel the pledge/hypothecation

order. The pledgees DP executes the pledge/hypothecation

request as per the instructions given.


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In case the pledgee rejects the pledge request, the pledgors

DP is intimated electronically. Now the securities which were

earlier credited as pledged balances will be credited to

free/locked-in balances.

Once the loan is repaid by the pledgor, the pledgor initiatesthe closure of the pledge. The request for the closure is

transmitted electronically to the pledgees DP. The pledgees

acceptance/rejection of the request for the closure of pledge

is transmitted electronically to the pledgors DP.

If the pledge is closed, the securities will be reflected as

fee/locked-in balances.

In case the pledgor defaults in repaying the loan to the

pledge, the pledge instructs his DP to invoke thepledge/hypothecation.

What You Need to Do?

IF YOU ARE A PLEDGOR IF YOU

ARE A PLEDGEE

See to it that:

The pledge/hypothecation request The form for

accepting/rejecting the

Pledge/hypothec

ation request is

complete in all respects. The formagreement number, closure date, invoking the

pledge/hypothecation

pledgee details and details of the request is complete

in all respects.

securities. The form submitted for


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closure of pledge/hypothecation

is complete in all respects.

(5) DERIVATIVE SERVICES

SHCIL provides clearing services for derivative segment of

BSE/NSE and commodity segment of MCX / NCDEX.

(6) CLEARING MEMBER

INTRODUCTION

SHCILs long standing association with clearing members has

enabled it to develop services based on an understanding of their

working and their requirement for timely and accurateinformation. We accept deposits of base capital and additional

base capital requirements stipulated by NSE for clearing members

trading on its capital market segment. Besides, our new products

with a broker empanelment clause ensure a mutually beneficial

tie-up. Clearing members stand to earn a steady income from our

product transactions and new add to their client base, while we

capitalize on their rapports with the market.

We currently offer depository services to more than 680 clearing

members of various exchanges connected with NSDL and CDSL.

Our customer care lines answer all your DP queries while the

Interactive Voice Response (IVR) system gives you information on

your account and other valuable data like CC calendar details,

tariff, ISIN information, etc. via telephone, fax and e-mail.


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ADVANTAGES

For institutional and retail clearing members we have

customized tariff for clearing members benefitting. Brokers having very high average trade value.

Brokers with big retail clientele.

Special tariffs for :

CM principal accounts.

NSCCL CM accounts.

Unified settlement pool accounts on CDSL.

SHCIL customer care help lines give timely and accurate

information to CMs. The interactive voice response (IVR)

system at SHCIL gives round the clock information on

holdings and transactions, pay-in/pay-out details, overdue

cum holding details, etc. via telephone, fax or e-mail.

Updated transactions statements are available on the

website free of any charge whatsoever. Members have a

choice of accessing their statements date wise for the lastone month or settlement wise for the same period. Current

trading day transactions are also made available, updated to

the hour.

Besides the transaction statements, the delivery-out report,

which is an extremely critical report for clearing members, is

also made available on the website, updated to the hour.

OPEN ACCOUNT REQUIREMENTS

In case of proprietors account, if authorized signatory is a person

other than the account holder; then the power of attorney is to be

submitted by the proprietor giving authority to that person.


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IF YOU ARE SHIFTING ANOTHER DP TO SHCIL:

Account opening form:

Board resolution.

Memorandum of association. Authorized signatories (for corporate).

SEBI registration certificate clearing indicating that it is for

stockbroker.

Closure letter addressed to old DP duly stamped and

acknowledged by old DP.

Closure letter and shifting letter has to be on the letterhead

of CM.

Closure letter should be duly stamped and acknowledged byold DP.

Shifting letter addressed to NSDL stating :

CM name

Old CM name

Old CM BP ID

Old DP name

New DP name.

IF YOU ARE OPENING A FRESH POOL ACCOUNT:

Account opening form

Board resolution.

Memorandum of association.

Authorized signatories (for corporate).

SEBI registration certificate clearly indicating that it is for

stockbroker. Letter from stock exchange stating CC CM ID.

In case of ISE mention on the letter:

Subject: Allotment of CC CM ID.

CUSTODIAL SERVICES FOR CM


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CUSTOD IAL SERVICES FOR BASE CAPITAL/ ADDITIONAL

CAPITAL REQUIREMENTS

We accept deposits of base minimum capital (base capital)and additional base capital as stipulated by NSE for clearing

members to be able to trade on its capital market segment.

The securities being deposited shall be subject to legal and

beneficial ownership of :

TM clearing member / spouse in case of individuals.

Any of the partners/their spouses in case of

partnership.

Any of the directors in case of corporate TM clearingmember.

What qualifies as deposit?

The following securities can be deposited:

Listed equity shares of approved companies subject to

15%.

Margin.

Equity shares of approved companies in DEMAT form

subject to 15 % margin (Nifty Scrips) and 25% margin (30other scrips pertaining to junior nifty group).

Listed units of mutual funds subject to 155 margins.

Unlisted units of mutual funds subject to 15% margin of

the NAV of the units prevalent on the last day of the

preceding month.

Listed PSU bonds subject to 15% margin.

Other debt securities admitted for trading on wholesale

debt market segment of NSE subject to 15% margin. Listed GOI/treasury bills subject to 10% margin.

Units under units scheme 1964 of UTI to be valued at the

lowest of the repurchase price prevalent in the preceding

12 months.


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Deposit of fixed deposit receipts (FDRs) issued by

approved banks. In case of FDRs, the members have to

submit the following :

Original FDR issued by any approved bank and drawn

and drawn on specified cities. A letter from the bank in a specified format.

A letter from the member in a specified format.

SHCIL charges upfront.

National saving certificate and Kisan Vikas Patra issued

by post office.

SGL securities

Certificate of deposits (CDs) issued by banks/institution.

NSE members may also pledge dematerialized shares infavor of NSCCL for security base capital and additional base

capital requirements. The DEMAT shares pledged by a

member as additional base capital will be considered for the

purpose of gross exposure computation. In case of DEMAT

scrips, the following conditions apply :

(1)The member has to open a separate beneficiary account for

base capital and additional base capital :

In the name of partners / their spouse in case of partnershipfirms.

In the name of corporate / directors of the company in case

of corporate clearing members.

In the name of proprietor / spouse in case of proprietary

concerns.

(1) The securities to be pledged to be transferred to the

account. Pledge instruction along with pledge deed in a

specified format to be given to SHCIL.(2) After pledge is created in favor of NSCCL, valuation is given

to NSCCL by SHCIL.

(3)Closure of pledge takes place at the instruction of NSCCL.

(4)Replacement / additional of securities also available.


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(7) NRI

INTRODUCTION

Over the years, SHCIL has grown to become a major player in the

capital market. With a network of offices operating across the

country with franchisees operating abroad, SHCIL provides

depository participant and other services close to 0.7 million

satisfied investors out of which over 6000 are NRI clientele.

SHCIL has a fully fledged NRI cell operating specifically to cater

needs pertaining to depository account opening and

maintenance. NRI cell coordinates with prospective NRI

customers, collects and assist in obtaining the relevant

documents and ensures the depository account is opened hassle

free.

NRI cell collects physical certificates to be sent for DEMAT and

ensure that the certificates are in order and can be sent for

dematerialization under the existing guidelines issued by thedepositories. Instruction for trade is accepted by fax on request

by NRI cell to ensure timely settlement of trades. In this case later

on the client needs to regularize by sending the original trade

delivery instruction. Any tariff and billing related query are

addressed by NRI cell.

In short NRI cell is a single point contact for any matter elating to

NRI depository operations.OPEN ACCOUNT

Before you open your account .

Ascertain your NRI depository account status as per

guidelines issued by RBI from time to time.


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In case of joint account, status of the first holder is reckoned

for all purposes.

If a scrip is held by three holders of whom the first is a NRI

and the other two or residents, then the account falls under

the NRI category. Accounts have to be opened in the exact order in which the

names appear in the certificate. Holding pattern AB is not

the same as BA.

CHECK YOUR FORM AGAINST THESE DETAILS:

All columns are filled in. write NA wherever not applicable.

Specify status as Non Repatriable (NRO) or Repatriable(NRE). Status cannot be changed once account is opened.

Bank account details should be compulsorily provided along

with 9 digit MICR code.

Ensure that the account status and the bank details are as

below :

(a) If the status is NRE, bank details can be NRE or NRO.

(b) If the status is NRO, bank details can be NRO only.

Copy of RBI approval is not mandatory and the standinginstruction for automatic credits may be marked as Y

without furnishing RBI approval. However, the onus of

reporting to RBI is on the client.

Proof of identity by way of copy of your passport and bank

account attestation is compulsory.

Initial the agreement on the front side and sign in the order

of of holders in the backside of the agreement.

Nomination.(a)Nominee may be any person other than the account holders.

(b)Photograph of the nominee has to be affixed on the

nomination form.

(c)The nominee must sign across the photograph and in the

space provided below.


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(d)If the nominee is a minor, the guardian shall sign at all

places where the nominee is supposed to sign.

(e)Photograph of the guardian also has to be affixed on the

nomination form.

YOUR ACCOUNT IS OPENED...

Once your account is opened, you will be allotted a client identity

number. You will be sent an operating kit containing:

Details of your account as provided by you and as recorded

by SHCIL.

Copy of the agreement entered into with SHCIL.

Delivery instruction by client booklet allotted to yourDEMAT account. This booklet helps you transfer shares from

your account to broker account and other accounts.

SWOT ANALYSIS


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STRENGTH

1. Wide coverage throughout

the country.

2. Promoted by 7 financial

institutions.

3. Largest account holders.

4. Largest custodian.

5. Catering to Indians as well

as NRIs and FIIs.

6. One stop shop for all

financial solutions.

7. Advanced system network.

WEAKNESS

1. Lack of aggressive

marketing.

2. Improper billings.

3. Expensive.

(Because separate account has

to be opened according toholdings).

4. Less investment in

advertising.

OPPURTUNITIES

1. E Broking.

2. Acquisition of smaller DPs.

3. Collaboration with banks.

4. New products.

THREAT

1. Promoters have become

competitors with strong

brand equity.

2. Increased cost as

perceived by customers.

3. Fluctuating market

conditions affect the

business.


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5. To increase business (by

opening new branches at

rural-urban areas.

STRENGTHS:

1. LARGEST DEPOSITPORY PARTICIPANT :

SHCIL is at the No. 1 position as depositor participant in all over

India. Being a premier custodian SHCIL is currently holding more

than 20 million certificates in etude as the largest custodian.

SHCIL accounts for more than 50% of institutional business in the

country.

2. BACK OFFICE SERVER :

For perfection in work SHCIL has back office server facility where

all the branches of SHCIL meet their necessary requirementsbefore any information takes place with the NSDL.

3. EXPERIENCE :

Stock holding is the oldest organization in custodian business all

over India and it has more than 10 years of experience in the

field. SHCIL has excellent management and technocrats team to

handle workloads and provides the best of services to itscustomers.

4. PROMOTED BY FINANCIAL INSTITUTIONS :


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SHCIL is promoted by all the major financial institutions in India,

i.e.

Industrial development bank of India.

Life insurance Corporation of India.

Oriental insurance co. ltd. Industrial credit and Investment Corporation of India.

New India insurance corporation ltd.

National insurance corporation ltd.

United India insurance co. ltd.

It has professionals on its board to look after the business and

meet its current and future requirements in the market.

NEW PRODUCTS :

SHCIL has offered some new products in the market like E-

stamping to meet the customer requirement as well as

established benchmark.

WEAKNESS:

1. SOME BRANCHES ARE NOT CONNECTED THROUGH

VSAT:

SHCIL is the largest branch network depository participant in the

custodian market but till now some few of the branches are not

yet connected through the VSAT.

2. LESS ADVERTISEMENT SPILLS :

SHCIL has less advertisement spill compared to its main

competitor like Kotak securities, HDFC, IDBI bank, and ICICI bank.

These are also producing the facilities of banking services and

other related services to the customers.


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OPPO RTUNITIES:

1. LARGE RURAL/SEMI-URBAN ARES ARE STILL

UNEXPLORED :

SHCIL has a growing structure of its branch network but still our

rural and urban areas are not covered in the process whereby the

common man participates in the growth of the economy.

Therefore it has become necessary to give attention to our rural

and semi-urban sectors immediately.

2. SELL N- CASH :

Sell- n- cash is totally a new concept of SHCIL where an investor

can present his share to knell in the market and can take

payment within 48 hours without delays.

3. MUTUAL FUND MARKETING :

Marketing and distribution of mutual fund is providing the facility

to the customer who do have the time and the expertise and who

are averse to risk.

4. SGL ACCOUNT :

SHCIL is the first corporation, which got he non banking license

to dematerialize the government securities. This enables the

institutional investors to properly use their fund to derive theextra return from their investment.

5. INSURANCE MARKETING :


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Marketing of insurance services recently started by SHCIL is also a

great opportunity available for its growth. This field can enhance

great opportunities and can alleviate their position in the market.

THREATS

1. CHARGES ARE HIGHER :

Indian customers have less money at their disposal. Since SHCIL

is the No.1 in the custodial sector in the market and for providing

the best services, it has higher charges detrimental for small

investors.

2. TIE UP WITH EXTERNAL AGENCY :

Now days tie-ups, M&A are a regular phenomenon in the market

to beat the competition and create a place for itself. The merger

and tie-ups of financial corporations poses a bigger threat to

SHCIL.


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PART 3


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NUMBER OF PEOPLE INVESTING IN STOCK MARKET

According to the findings 85% of people invest in the stock

market, while 15% dont invest in the stock market or invest

elsewhere.

YES NO

85% 15%

After analyzing the data it was concluded that 85% of the people

invest in the stock market through different DPs while 15% of

them dont invest in the stock market because they consider it

more risky or they have little idea about stock market.


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IMPORTANT FEATURES WHILE MAKING INVESTMENTS

The findings say that 58% think that return is the most important

feature while making investments; 38% think safety as important;

24% give priority to liquidity and 19% think tax benefit as

important.

SAFETY RETURN LIQUIDITY TAX BENEFIT

38% 58% 34% 19%

Return on investment is the prime motive behind investments.Investors also expect safety. Liquidity needs of the investors

cannot be neglected as the demand for cash forms an important

objective of investment. Lastly, it was observed that tax benefit

also accounts for making various investment decisions.

MODES OF INVESTMENT

The given findings say that 59% of the people invest through

banks; 66% through equity; 7% through bonds and 61% through

mutual fund.


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BANK EQUITY BONDS MUTUAL FUND

59 66 7 61

After the analysis we can say that most of the people invest in

equity as it provides growth oppor

27892958 stock holding corp of india ltd

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