SYDENHAM COLLEGE OF COMMERCE &

ECONOMICS B ROAD, CHURCHGATE, MUMBAI

400020
PROJECT TITLE :

ANALYSIS OF STOCK HOLDING

CORPORATION OF INDIA LTD (SHCIL) AS
DEPOSITORY PARTICIPANT
SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENT UNDER SEMESTER BASED CREDIT AND
GRADING SYSTEM FOR POST GRADUATE SEMESTER III
PROGRAM UNDER FACULTY OF COMMERCE
MASTERS OF COMMERCE PART II ( MORNING )
BANKING AND FINANCE
SUBMITTED BY :
OMKAR . S . NEMLEKAR
ROLL NO : 89
SEMESTER III
SUBJECT : RESEARCH METHODOLOGY
UNDER THE GUIDANCE OF :
PROF. DR. SAUMITRA . S . SAWANT
UNIVERSITY OF MUMBAI
ACADEMIC YEAR : 2016 - 2017

DECLARATION
I , OMKAR S NEMLEKAR, student of Masters of Commerce (M.com)
Banking and Finance Group Semester III, Roll No. 89 of SYDENHAM
COLLEGE OF COMMERCE AND ECONOMICS B ROAD,
CHURCHGATE, MUMBAI 400020, hereby declare that I have completed
the project on ANALYSIS OF STOCK HOLDING CORPORATION OF
INDIA LTD (SHCIL) AS DEPOSITORY PARTICIPANT in the subject
RESEARCH METHODOLOGY for the academic year 2016 2017

SIGNATURE OF THE STUDENT

ACKNOWLEDGEMENT

I would firstly like to thank the UNIVERSITY OF MUMBAI for giving us

the liberty of choosing such a topic which will be benefitted to use in future. I
would like to thank the PRINCIPAL DR. ANNASAHEB KHEMNAR of
SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS for giving
me the opportunity to study in this esteemed college and doing the course of
Banking and Finance. I would like to express my sincere gratitude to PROF.
DR. SAUMITRA . S . SAWANT who is my project guide, as she has been the
guiding light for this project & has also provided me with the best of his
knowledge, advice and encouragement which helped me in successful
completion of this project.
My colleagues and specially my parents who have also supported and
encouraged me, the success of this project to the large extent are also dedicated
to them.
I would like to thank all those who have helped me and whom I have forgotten
to mention in this space.

CERTIFICATE

This is to certify that OMKAR S NEMLEKAR Roll No. 89 student of

MASTERS OF COMMERCE (M.COM) PART II SEMESTER III

(2016 2017) has successfully completed the project as a part of the partial
fulfillment of the course and he has done this project under the guidance,
supervision and due consultation of PROF. DR. SAUMITRA . S. SAWANT

I. Project Guide :Date :-

II. External Examiner :Date :Place :-

INDEX
SR. NO

TOPIC

CHAPTER I

PAGE NO.

INTRODUCTION TO RESEARCH

1.1

RESEARCH

1.2

OBJECTIVES OF STUDY

1.3

STUDY PROBLEM

1.4

METHODOLOGY

CHAPTER II
2

INTRODUCTION TO DEPOSITORY
SYSTEM

2.1

INTRODUCTION

2.2

FUNCTIONS OF DEPOSITORY

11

2.3

BENEFITS OF DEPOSITORY SYSTEM

12

2.4

NEED FOR DEPOSITORY SYSTEM

13

2.5

ROLE OF DEPOSITORY SYSTEM

14

CHAPTER III
3

CASE STUDY : STOCK HOLDING

CORPORATION OF INDIA LIMITED
( SHCIL)

16

CHAPTER IV
4

41

RESEARCH METHODOLOGY

4.1

METHODOLOGY

41

CHAPTER V
5

5.1

ANALYSIS AND INTERPRETATION

OF DATA

ANALYSIS AND INTERPRETATION

42

42

CHAPTER VI
6

FINDINGS AND
RECOMMENDATIONS

53

6.1

FINDINGS

53

6.2

RECOMMENDATIONS

55

CHAPTER VII

56

CONCLUSION

CHAPTER VIII
8

BIBLIOGRAPHY

60

EXECUTIVE SUMMARY

A depository is a facility such as a building, office or warehouse where

something is deposited for storage or safeguarding. It can refer to an
organization, bank or an institution that holds and assists in the trading of
securities. The term can also refer to a depository institution that accepts
currency deposits from customers. A depository institution provides financial
services to personal and business customers.

Deposits in the institution include securities such as stocks or bonds. The

institution holds the securities in electronic form also known as book-entry
form, or in dematerialized or paper format such as a physical certificate
Transferring the ownership of shares from one investor's account to another
investor's account when a trade is executed is one of the primary functions of a
depository. This helps reduce the paperwork for executing a trade and speeds up
the transfer process. Another function of a depository is it eliminates the risk of
holding the securities in physical form such as theft, loss, fraud, damage or
delay in deliveries

Depository services also include checking and savings accounts, and the
transfer of funds and electronic payments through online banking or debit cards.
Customers give their money to a financial institution with the belief the
company holds it and gives it back when the customer requests the money.
These institutions accept customers' money and pay interest on the money over
time.

While holding the customers' money, the institutions lend it to other people or
businesses in the form of mortgages or business loans and generate more
interest on the money than the interest paid to customers.

The three main types of depository institutions are credit unions, savings
institutions and commercial banks. The main source of funding for these
institutions is through deposits from customers. Customer deposits and accounts
are FDIC insured up to certain limits. Credit unions are nonprofit companies
highly focused on customer services. Customers make deposits into a credit
union account, which is similar to buying shares in that credit union. The credit
union earnings are distributed in the form of dividends to every customer.

Savings institutions are for-profit companies also known as savings and loan
institutions. These institutions focus primarily on consumer mortgage lending
but may also offer credit cards and commercial loans. Customers deposit money
into an account, which buys shares in the company. For example, during a fiscal
year, a savings institution may approve 71,000 mortgage loans, 714 real estate
loans, 340,000 credit cards and 252,000 auto and personal consumer loans while
earning interest on all these products.

Commercial banks are for-profit companies and are the largest type of
depository institutions. These banks offer a range of services to consumers and
businesses such as checking accounts, consumer and commercial loans, credit
cards and investment products. These institutions accept deposits and primarily
use the deposits to offer mortgage loans, commercial loans and real estate loans.

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 sub
section 1A of Section 12 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. As of 2012, there were 288 DPs of NSDL and 563 DPs
of CDSL registered with SEBI.

SEBI (D&P) Regulations, 1996 prescribe a minimum net worth of Rs. 50 lakh
for stockbrokers, R&T agents and non-banking 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 specified
net worth criterion separately for each such depository. No minimum net worth
criterion has been prescribed for other categories of DPs; however, depositories
can fix a higher net worth criterion for their DPs

Depository is an institution or a kind of organization which holds securities with

it, in which trading is done among shares, debentures, mutual funds, derivatives,
F&O and commodities. The intermediaries perform their actions in variety of
securities at Depository on behalf of their clients. These intermediaries are
known as Depositories Participants. Fundamentally, there are two sorts of
depositories in India. One is the National Securities Depository Limited
(NSDL) and the other is the Central Depository Service (India) Limited
(CDSL). Every Depository Participant (DP) needs to be registered under this
Depository before it begins its operation or trade in the market.

Currently there are two depositories operational in the country :

National Securities Depository Ltd. - NSDL - Having 1.39 crores Demat
A/c as on 30-06-2016

Central Depository Service Ltd. - CDSL - Having 9800000 Demat A/c as

on 30-06-2016