A SYNOPSIS ON

“A STUDY ON DEMAT ACCOUNT PROCESS

WITH SPECIAL REFERENCE TO IIFL”

SUBMITTED IN PARTIAL FULFILLMENT FOR THE

AWARD OF THE DEGREE MASTERS OF

MANAGEMENT STUDIES

[FINANCE]

UNDER UNIVERSITY OF MUMBAI

SUBMITTED BY

AKSHAYA S. CHENDVANKAR

ROLL NO. MS1819012

UNDER THE GUIDENCE OF

PROJECT GUIDE

PROF. TEJASVI BHOSALE

BATCH 2018-2020

INSTITUTE OF MANAGEMENT & COMPUTER STUDIES,

THANE (W).

1
 CERTIFICATE

This is certify that AKSHAYA CHENDVANKAR of MMS (Master of Management Studies)

Semester III, Batch (2018-2020) has successfully completed the project on “A STUDY ON
DEMAT ACCOUNT PROCESS WITH SPEACIAL REFERENCE TO IIFL” under the
guidance of Prof. Tejasvi Bhosale.

Date:-

Place:- Thane

Director Project Guide/ External Examiner

2
 DECLARATION

I, AKSHAYA CHENDVANKAR the student of MMS Semester III, Batch (2018-2020)

hereby declare that, I have completed the project on “A STUDY ON DEMAT ACCOUNT
PROCESS WITH SPEACIAL REFERENCE TO IIFL” successfully. The information
submitted is true and original to the best of my knowledge.

Date:-

Place:-

Yours Faithfully,

AKSHAYACHENDVANKAR

3
 ACKNOWLEDEMENT

I take this opportunity to express my gratitude and extend my thanks to all those who helped
and guided me to make this endeavour successful.

I express my sincere thanks to Director Sir for giving us the facilities and resources in bringing
project successfully.

I would also like to thank our guide (Prof. Tejasvi Bhosale) who helped me in the completion
of project.

I cannot end this page without thanking my family and friends for their support and
encouragement while undertaking this project.

4
 INDEX

CHAPTER CHAPTER PAGE

NO. NO.
1 Chapter No .1 Introduction of study 7
1.1 Introduction of Demat Account 8
1.2 Objectives of study 8
1.3 Review of literature 9-10
1.4 Research Methodology 11
1.5 Scope of study 11
1.6 Importance of study 12
1.7 Limitation of study 12

2 Chapter No.2 Company Profile 13

Company profile , History ,Overview 14
Product & Services 15
Capital Market Service 16
Company Description 17

3 Chapter No.3 The Conceptual Background 18

What is Demat Account ? 19
Facilities of Demat Account 20
Importance & type of Demat Account 21-22
How to open & how does Demat Account work

23-24

5
 Steps, charges , advantages and disadvantages of 24-28
Demat Account
What is Depository & Depository Participant ? 29
NSDL & CSDL 29-30
What is IPO ? 31
How to close a demat account ? 31-32

4 Chapter No. 4 Data Analysis & Interpretation 33-69

5 Chapter No. 5 Findings & Suggestions 70
5.1 Findings 71-72
5.2 Suggestions 73
5.3 Conclusion 74
6 Bibliography 75
7 Annexure- Questionnaire 76-78

6
 CHAPTER 1

INTRODUCTION OF STUDY

7
 1.1 Introduction

No stamp duty is levied on transfer of securities held in demat form. A demat account offers
instant transfer of securities thereby providing liquidity. There are various benefits of opening a
demat account such as it is safe and convenient way to hold securities compared to holding
them in physical form. No stamp duty is levied on transfer of securities held in demat form. A
demat account offers instant transfer of securities thereby providing liquidity
A demat account cannot be opened directly with CDSL (Central Depository Services
(India) Ltd). It has to be opened only though a DP (depository participant) of CDS A depository
is a provider of facility for holding securities in book entry or electronic/demat form. It is a
kind of bank for securities like shares, debentures, bonds, etc. It also facilitates transactions in
the securities held by it.

1.2 Objective of study

 To know objective of the study about the potential of the market regarding the public.

 To know the role of DEMAT ACCOUNT.

 To know the procedure of opening DEMAT ACCOUNT.

8
1.3 Review of literature
Rev Bhatt & Bhatt (2012) in their paper entitled “Financial Performance Evaluation of
depositories in India (A comparative study of NSDL & CDSL)” explores the fact that the
trend of automation, especially, Dematerialization, has enabled the Indian capital market to
take the world center stage & scale to unprecedented heights. The securities market in
India has grown exponentially. The analysis of the progress of NSDL & CDSL in
economic terms clearly reveals that both the depositors have shown a remarkable progress
in terms of DEMAT accounts; DEMAT value &quantity, Settlement value and quantity and
the number of depository participants.

Chaudhary&Malik (2011) in their paper “Depository system in India: An appraisal”

states that majority of the participants are residing with NSDL with stake of 55 percent.
Thus, it acts as the primary organization with the majority of participants in the system.
Further the paper analysis concludes that the respondents have no clear & crisp idea
regarding the services offered by the DPs to their clients. In order to overcome
geographical & time barriers formal & informal communication need to be developed.

George (1996) in his article “Towards a paperless settlement system, ” explains about the
role of the NSDL in revolutionizing the paperless stock settlement system in the country.
He has examined steps taken by the depository to ensure that the scruples trading system is
a success. He has also stressed the importance of the role of the regulatory body in making
the depository system successful.

Jaunty (2007) in his research work “A study on the National Stock Exchange of India
Limited” has highlighted that the NSE has created a niche for itself not only in the national
arena but also in the international market with the adaptation of required structural
changes. Therefore, there is no doubt that NSE will be an attractive destination for the
nation & international investors to park their funds in the years to come.

Javaid (2003) in his thesis “ A study of the operations of stock exchanges with the special
reference to Delhi Stock Exchange” discussed that Indian stock market has emerged as a
major source of finance for the corporate sector. It is an institution evolved in the
industrial developed capitalist economies with free market mechanism. The stock
exchange was termed as institutional allocator of resources par excellence.

9
Kaur (2013) in her paper “Investors preference between DEMAT & REMAT and
awareness regarding depository & its various laws” explains the depository system in
India, focusing on the reasons for investors' preference between REMAT & DEMAT. To
sum up, she concludes that the growth rates of DEMAT account holder are increasing over
the years. The Indian system of capital market is a two tier system-Indian government
allows holding securities in any form, i.e. either in physical securities or in electronic
(DEMAT) form.

Olekar&Talwar (2013) in their paper “Online trading & DEMAT account in India –
Some issues” observed that the banks normally levy a lower service charges compared to
other depository participants. He also found that when the numbers of users are more
online, the speed of transactions is affected.

Rao (1995) in his paper “Depository System: A boon for India capital markets” holds the
view that the introduction of depositors would improve the market efficiency. It is also
expected to arrest the prolonged depression in the stock market. The paper analysis shows
the manner in which the depository would help to revive the stock market.

Sahoo (1995) in his article “ The depositories ordinance, 1995 explained” has explained
the provisions of Depositories Ordinance 1995, which provides a legal basis for the
establishment of depositories in securities with a view to ensure free & the expeditious
transfer of securities.

Singh &Goyal ( 2011) in their paper entitled “ Analysis of factors affecting the Decision
Making of the Investors in Depository System” holds the view that most of the investors
think that the shorter settlement period, safety of securities with the depositories, attitude
of the staff available with the DPs, timely services provided by the DPs to the investors,
reduction in transaction costs, repatriation of sales proceeds of shares / debentures are
some of the factors which affects the decision making of the investors in depository
system. Opening DEMAT account with DP is easy but they charge for providing this
service.

10
1.4 Research Methodology

Research methodology refers to the search for knowledge. It is a way to systematically

solve the research problem. In it we study the various steps that are generally adopted by
the researcher in studying his research problem along with logic behind them.

1.4.1 Research Type :

Analytical research - The researcher has to use facts and information which are available
and after collecting these data the researcher can analysis and make a critical evaluation on
the materials in the method of analytical research.

1.4.2 Data Collection :

a . Primary Data:

This method .includes the data collected from the personal interaction with authorized
members, staff members of IIFL.

Questionnaire survey

b. Secondary Data :

The sources of area internet

WWW.MONEYCONTROL.COM

1.4.3 Instrument :

company data

1.5 Scope of the study

The scope of the study is to create awareness about what is DEMAT ACCOUNT PROCESS
and how can do trading through their share market.

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1.6 Importance of study
1. It provides a complete knowledge of various fundamental concept of share market and
online trading.

2. It will help in analyzing the behavior of consumer and help in knowing the parameters
of investment on which they would life to invests.

3. Though this project i am not only bringing long term clients for my organization but
also creating a word of mouth publicity of my organization by offering the best services to
the clients so that more and more potential customer will come an stick my organization.

4. Also thought this project i suggest the organization the behavioral pattern of investor to
word different instrument.

1.7 Limitation of study

1. Due to the lack of time, it was not possible for the researcher to approach all the
people.

2. The result of the study may not be universally applicable due to regional constraints.

12
 CHAPTER 2

COMPANY PROFILE

13
Introduction
IIFL Holdings Limited (formerly India Infoline Limited) d/b/a IIFL and India Infoline, is
an Indian diversified financial services company headquartered in Mumbai. The
organisation was founded by Nirmala Jain. IIFL and its group companies are backed by
Canadian investor Prem Watsa, private equity firm General Atlantic and CDC Group, the
UK Government's private equity arm. IIFL is ranked among the top seven financial
conglomerates in India and as the top independent financial services firm in India in terms
of market capitalisation. Nirmal Jain is the Chairman of the group, while R Venkataraman
is the Group Managing Director and Co-Promoter.

Trade name India Infoline

Formerly India Infoline Limited

Type Public company

NSE: IIFL
Traded as

BSE: 532636
Industry Financial Services
1995
Area served India

Canada

United States

United Kingdom

Switzerland

Singapore

Hong Kong

Mauritius

UAE
Key people Balaji Vasudevan (Chairman)

R Venkataraman (Group Managing

Director)
Number of employees 10,500
Website iifl.com

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Product and services provided
Products

1 .Equities /Bonds /Mutual Fund/ Derivatives

2. .Managed Investment Services /PMS

3. Commodities

4. FX Trading

5. Wealth Management

6. Asset Management

7. Investment Banking

8. Insurance

9. Fixed Deposit

10. Loans

11. Gold Bonds

12. Offshore other small Investment

Services

1. Creation of a customized financial strategy.

2. Diversification of assets based on a formal process of asset allocation.

3. Active tracking, monitoring, and review of portfolio

4. Creation of private trusts

5. Tax planning

6. Estate planning

7. Structuring of family wealth

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 Capital Market Services
Indiainfoline is a leading underwriter of public offering and private placements for
a middle markets company in India. We' re known for our innovative financing
solutions that support complex corporate strategies as well as our long - standing
client relationship. Our a capital market business seek to leverage our operational
expertise and world class institutional and retail distribution platforms to partner
with the existing owners and management to maximize value at the time of a
public or secondary market offering. Over the course of their careers, member of
our senior team have to raised over $20 billion in equity and debt capital for
company around the world.

 Assessing the company's optimal capitalization and source of incremental

capital.

 Developing the target investor group and effectively positioning the

company 's story to the investor community.

 Preparing all the investor material and managing all communication with
potential investors

 Managing due diligence process and all investors inquires.

 Assessing with necessary documentation to expeditiously execute a

successful capital raising.

 Assessing the most appropriate group of investors to assist the company in

it's a long -term plan.

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 Company Description

Indiainfoline Limited is a leading full service investment bank founded in 1996

offering a wide range of financial services and wealth management solutions to
institutions, corporations, high - net worth individuals and families. The firm has
rapidly expanded its footprint to over 2500 location across India with international
presence in Singapore & Sri Lanka. Founded by IIFL Limited. The firm's
philosophy is entirely client centric, with a clear focus on providing long term
value addition to clients, while maintaining the highest standards of excellence,
ethics and professionalism. The entire firm activities are divided across distinct
client groups, Private clients, Corporate and Institutions. IIFL has been named The
Best broking firm house in India. The firm has emerged a winner across all key
segments in Asia money's largest survey of high net worth individuals in India.

In order to satisfy the growing demand of India investors for trading offshore
investment products. Spread Co has designed and created a new financial product
which incorporates the benefits of traditional share trading and offering leverage.
The new asset class is known as Premium Securities Indiainfoline Limited Group
has entered for a Introductory Broker relationship with Spread Co to introduce
clients for this financial product.

17
 CHAPTER 3

THE CONCEPTUAL BACKGROUND

18
 3.1 Introduction

What is Demat account?

The word ‘Demat’ is the colloquial short word for ‘Dematerialized account’ which is a type of an
account where shares and securities are held electronically to enable trading transaction &
settlements in stock exchange, thereby eliminating the need of physical financial instrument.

It was in the year 1996 when it was first introduced in India after the introduction of the
depository system by the Depository Act of 1996. It is mandatory for one to own a demat account
with an investment broker linked to a savings or other funded account, if he/she wants to
participate in the stock market trading.

The interested candidate need to approach a Depository participant (DP) which acts
as intermediaries between the trader/investor and the depository. A DP will be registered with the
Central Depository Services Ltd. (CDSL) and the National Securities Depository Ltd. (NSDL) of
the country.

The DPs are basically the stock broking firm, bank or sub- broker etc, with whom one needs to get
registered, which needs some identity proofs and other documents for verification and on its
completion provides the trader with login credentials and transaction passwords upon whose
confirmation the transfers or purchases of shares can then be initiated.

One can operate the transaction of buying/selling of shares by own or through broker personally
or online from their demat account. The broker then provides the candidate with transaction
password to carry out the share trading processes. It is possible for a person to hold more than one
demat accounts.

Share trading using demat account involves inward and outward brokerage, which varies from
broker to broker and on trading style whether intraday or delivery.

19
What are the facilities offered by a Demat Account?

 Transfer of shares

A Demat Account is used to transfer share holdings of an investor. It can be done by using
a Delivery Instruction Slip (DIS) in order to conduct share trading. You can provide all the
relevant details in this slip for smooth execution of a transaction.

 Loan facility

The securities held in your Demat Account can give you access to a variety of loans from
the bank. You can pledge these securities as a collateral to secure a loan from your bank.

 Dematerialization & rematerialisation

If you have a Demat Account, then conversion of the securities into different forms
becomes a simple task. You can give necessary instructions to your depository participant
(DP) for dematerialisation i.e. to get the physical share certificates converted into
electronic form. Conversely, you can get the electronic securities converted back to the
physical form as per your requirements.

 Multiple access options

Owing to electronic operation, a Demat Account can be accessed using numerous media.
You can conduct investing, trading, monitoring and other security related operations using
facility of the Internet on a computer, Smartphone, or other handheld devices.

 Corporate actions

Having a Demat Account can help you avail benefits associated with owning securities.
Whenever a company provides dividends, interest or refunds to its investors, all the Demat
account holders get access to these benefits automatically. Additionally, corporate actions
related to equity shares like stock split, right shares or bonus issue is updated in the
shareholders’ Demat Accounts.

 Freezing Demat accounts

Demat account holders have the option to freeze their accounts for a specific duration, as
per the requirement. It is done to avoid any unpredicted debit/credit into the Demat
Account. To avail the freezing option, the account holder needs to hold a specific quantity
of securities in his/her account.

 Speed E-Facility

20
 The National Securities Depository Limited (NSDL) keeps extending various facilities for
the Demat account holders. Instead of physical submission of the slip, the account holder
may send instruction slips electronically to the depository participant. It is done to make
the process faster and less cumbersome.

Why Demat Account is Importance ?

A demat account allows the investors to hold their securities in an electronic form instead
of the physical form. It makes the entire process of trading, investing, monitoring and holding
shares/stocks more convenient and faster.

Let’s look at some other reasons why demat account is so important:

1. Much Safer: Earlier when there were no demat accounts, the physical form of shares were
very difficult to store and maintain. There was always a risk of it being misplaced, stolen
or damaged. But with stocks being maintained in an electronic form in demat accounts,
our investments are much safer. Additionally, there are extra layers of securities,
regulations and statutory compliances that make demat accounts a much safer option.

2. Indispensable for Trading: You cannot trade in the stock market if you don’t have a
demat account. Since stock trading is done electronically, unless you have a demat account
for buying and selling publically listed shares, you won’t be able to carry out any
transactions. It is mandatory to settle trades in a demat form (electronically) on any stock
exchange.

3. Multiple Securities Under One Roof: It can be extremely confusing for investors to
maintain separate accounts for various financial products like debt securities, equity,
mutual funds and so on. A demat account takes this hassle away from the investors and
allows them to preserve multiple securities in one single account. This makes it easier to
keep a track of all the financial products under one roof.

4. Flexible Workplace: Demat accounts come with multiple accessing options as they can be
operated electronically. This means you can buy, sell or simply monitor your investments
from anywhere. You don’t have to even sit in front of a computer necessarily and can
access your record using a laptop, Smartphone, tablet or other such smart devices. You can
trade while being on the move and don’t have to stick to sitting in front of your computer at
the office premises.

5. Odd Lots: When there were physical certificates for shares, it was not possible to deal in
odd lots or single security. It was only possible to deal in specified quantities back then.

21
 Ever since demat accounts got introduced in India, it has become possible for a
shareholder to sell just one share too from his holding if he wishes to.

6. Lower Costs: There were many additional costs like stamp duty and handling charges
when there were physical certificates for shares. But with the advent of demat accounts, all
such expenses have been completely eliminated. This had led to a reduction in the costs of
trading in shares and a considerable amount of savings for the investors.

7. Quick and Convenient: Dealing with physical securities would involve a visit to your
broker every time you wanted to buy or sell shares. But since demat accounts operate
electronically, you are no longer required to make frequent visits to your broker and it can
all be done online within a fraction of seconds. Also, there are no chances of any manual
errors that may happen in case you want to transfer your shares in someone else’s name as
the processes are now electronically handled.

Types of Demat Account

Demat accounts are online accounts which hold the securities like shares, bonds, etc. in
dematerialized or electronic form. Though the purpose of the demat remains same for all
investors, there are different types of demat account for different investors.

How many types of demat accounts are there?

There are 3 main types of demat accounts:

1. Regular Demat Account:

A regular demat account used by investors residing in India.

2. Repatriable Demat Account:

A demat account used by NRIs under which funds can be transferred abroad. This
type of demat account requires an NRE bank account associated with it.

3. Non-Repatriable Demat Account:

A demat account used by NRIs under which funds cannot be transferred abroad.
This type of demat account requires an NRO bank account associated with it.

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How to open a Demat Account?
You can open a Demat Account by following these easy steps:

 Firstly choose a Depository Participant (DP) with whom you would like to open a Demat
Account.
 Afterwards, fill an account opening form and attach a passport-sized photograph along
with photocopies of the required documents stating proof of address and identity. You
should have a PAN card unless otherwise exempted. Remember to carry the original
documents along for verification.

 The DP will give you a copy of the rules and regulations, the terms of the agreement and
necessary charges that you need to pay.

 During an In-Person Verification, a representative of the DP would contact you to verify

the details provided in the account opening form.

 After processing of the application, you will get an account number/ client ID from the DP.
These details will be required to access Demat Account online.

 When you become a demat account holder, you would be required to pay an annual
maintenance fee for maintenance of your account. Additionally, you would be charged a
transaction fee for conducting buying/selling transaction via the Demat Account. In case
your shares are in physical form, the DP may charge you a separate fee for
dematerialisation of the shares.

 You can open a Demat Account without having any shareholdings. Moreover, there’s no
mandate to maintain a minimum balance.

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How does Demat account work?

Trading through a Demat account is similar to the procedure of physical trading, except that a
Demat account is electronic. You begin trading by placing an order through your online trading
account. For this purpose, it is necessary to link both trading and Demat accounts. Once an order
is placed, the exchange will process the order. Demat account details the market price of shares
and the availability of shares is verified before the final processing of the order. On completion
of the processing, shares are then reflected in your statement of holdings. When a shareholder
wishes to sell shares, a delivery instruction note has to be provided with details of the stock.
Shares are then debited from the account and the equivalent cash value is credited to the trading
account.

4 steps to open a Demat account

Demat account is required to credit or debit your purchases and sales of the securities. Given
below are four simple steps to open a demat account and start trading. The Indian share market
provides you with indefinite opportunities to build wealth and to achieve your financial
goals. You can invest in numerous asset classes such as stocks, futures, options,
commodities, etc. and can earn huge amount of profits, provided you have got a strategy
in place. To be able to trade in the share market, the primary thing you will need is a
Demat account to credit or debit your purchases and sales of the securities. Given below
are four simple steps to open a demat account and start trading..
Step One :Choosing a Depository Participants (DP)

Depository participants are banks, brokerage firms, or financial institutions that

works as an intermediary between the stock exchange and the investor. They can
sell or buy shares on behalf of the investor and assist them in the investment
process. The first step in the course of opening a demat account would be to consult a DP
and an agent of depository (NSE, BSE, or any institution who holds shares and securities)
and fill an account opening form. You should always consider going with a DP who is
licensed and is listed with the concerned Depository. The list of all DPs is available on the
NSDL and CDSL websites.

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 Step Two: Documentation

Along with the account opening form, you will need to attach the following document:

Proof of identity:

PAN card with a valid photograph, with Aadhar card/ Driving license/ Voter Id/ Passport or
Identity card with a photograph and address issued by one of the following: Public sector
undertaking, central or state government institutions, regulatory/statutory bodies, public
financial institutions, or scheduled commercial banks, among others.

Any of the following:

1. Driving license/Voter ID/Aadhar card/Passport/registered lease of the current house/Ration

card/Insurance copy

2. Utility bills (not more than 3 months old) like electricity bill, telephone bill (landline only),
or gas bill

3. Identity card with a photograph and address issued by one of the following: Public sector
undertaking, central or state government institutions, regulatory/statutory bodies, public
financial institutions, or scheduled commercial banks, among others.

4. Bank account statement or passbook, not more than three months old.

5. Proof of address issued by any of the following: Elected representative of the Parliament/
Gazetted officer/ Notary public/ managers of scheduled commercial/co-operative banks.

6. Proof of address in the name of a spouse can also be accepted.

People who are authorized to attest the documents:

Gazetted officer/ Notary public/ Manager of Scheduled commercial/co-operative bank

Step Three : Contract

After the first two step are done, you will have to sign an agreement with your DP
which provides information about the duties and rights of the Depository participant and the
signing investor (you).

The rights and duties of the investor are: Right to freeze the account, right to a nominee, right
to avail a power of attorney, etc. The rights and duties of the DP, meanwhile, include selling
and buying shares on the investor’s behalf, giving a 30-day notice before increasing
25
transaction charges, the right to provide the Depository with the investor’s information if the
need arises etc .You must always read the agreement thoroughly before signing it .

Step Four : Account opening and Demat account number

After all the necessary formalities are fulfilled, and you have signed the agreement, the DP opens
a Demat account for you, and you are provided with your Demat account number, also called as
BOID ( Beneficiary Owner Identification Number)

What are the charges of Demat account?

The charges of Demat account vary as per the volume held in the account, type of account
subscribed, and the terms and conditions laid by the depository and the stockbroker. While there
are no Demat account opening charges, every stockbroker charges transaction/operation fees
including the Annual Maintenance Charge (AMC). Failure to pay these fees may result in the
freezing of the account.

Demat Account: Advantages and Disadvantages

Advantages:

26
There are several benefits associated with the Demat system:

 It is a safe and convenient way to hold securities.

 It ensures immediate transfer of securities.

 There is no stamp duty on transfer of securities.

 Risks associated with physical certificates such as bad delivery, fake securities,
delays, thefts, etc. are eliminated.

 There is a major reduction in paperwork involved in transfer of securities, and

reduction in transaction cost, etc.

 No odd lot problem exists; even one share can be sold.

 Change in address recorded with DP and gets registered with all companies in
which investor holds securities 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 of

bonus/split/consolidation/merger etc. can take place.

 Holding investments in equity and debt instruments in a single account is possible.

Besides the above benefits, there are some additional advantages listed as below:

Benefit to the Company:

The depository system helps in reducing the cost of new issues due to lower printing and
distribution costs. It increases the efficiency of the registrars and transfer agents and the
Secretarial Department of the company. It provides better facilities for communication and timely
services with shareholders, investors, etc.

Benefit to the Investors:

27
The depository system reduces risks involved in holding physical certificates, e.g., loss, theft,
mutilation, forgery, etc. It ensures transfer settlements and reduces delay in registration of shares.
It ensures faster communication to investors. It helps avoid bad delivery problems due to signature
differences, etc. It ensures faster payment on sale of shares. No stamp duty is paid on transfer of
shares. It provides more acceptability and liquidity of securities.

 Benefits to Brokers:

 It reduces risks of delayed settlement. It ensures greater profit due to increase in volume of
trading. It eliminates chances of forgery, bad delivery. It increases efficiency of trading,
profitability and confidence in investors.

 Disadvantages of the Demat Account :

The disadvantages of dematerialization of securities can be summarized as follows:

 Trading in securities may become uncontrolled in case of dematerialized securities.

 It is incumbent upon the capital market regulator to keep a close watch on the trading in
dematerialized securities and see to it that trading does not act as a detriment to investors.

 For dematerialized securities, the role of key market players such as stock-brokers needs to
be supervised as they have the capability of manipulating the market.

 Multiple regulatory frameworks have to be conformed to, including the Depositories Act,
Regulations and the various Bye-Laws of various depositories.

 Agreements are entered at various levels in the process of dematerialization. These may
cause worries to the investor desirous of simplicity.

28
  There is no provision to close a demat account, which is having illiquid shares. The
investor cannot close the account and he and his successors have to go on paying the
charges to the participant, like annual folio charges etc..

 After liquidating the holdings, many Indian investors don't close their dp account. They are
unaware that DPs charge even on dormant accounts.

what is Depository and Depository participant ?

Depository is an institution or a kind of organization which holds securities with it in De-Mat

form, 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 (DPs).
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.

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.

NATIONAL SECURITIES DEPOSITORY LIMITED (NSDL)

29
NSDL was the first depository organization promoted by IDBI , UTI , and National Stock
Exchange (NSE ). NSDL was set up to provided electronic depository facilities for securities
being traded in capital market. The depositories ordinance was promulgated by the Government of
India in September 1995. The Securities and Exchange Board of India (SEBI) Issued guidelines'
for depositories in May , 1996.

NSDL has minimum net worth of RS100 crores. NSDL deal with shares in dematerialized form
through depository participants who are agents of investor banks, stockbrokers and financial
institutional, bank, custodian, registered stockbroker or a non- banking financial company subject
to the approval from the Depository Company and SEBI. NSDL aims at ensuring the safety and
soundness of Indian capital market by developing settlement solutions that increase efficiency,
minimize risk and reduce cost.

CENTRAL DEPOSITORY SERVICES LIMITED (CSDL)

CSDL is second depository in India, is set up to meet the objective the Act & to fill the user' s
need . CSDL is secured ''Certificate of Commencement '' of business on Feb 8 , 1999 from SEBI.
The balances in the investor 's account recorded and maintained with CSDL 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 based certificates, which were prone to be fake , forged,
counterfeit resulting in bad deliveries. CSDL offers an efficient and instantaneous transfer of
securities.

CSDL 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. Each and every activity of CSDL stem from the
essential reason behind forming this depository. i.e. to encourage India's individual investors to
benefits from actively participating in a depository.

Services provided by Depository

 Dematerialisation (usually known as demat) is converting physical certificates of

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

 Transfer of securities, change of beneficial ownership

 Settlement of trades done on exchange connected to the Depository

 Pledging and Unpledging of Securities for loan against shares

30
 Corporate action benefits directly transfer to the Demat and Bank account of customer

What is the Initial Public Offer (IPO)?

IPO is the process by which a privately held company brings its shares to the market for the first
time. By way of an IPO, a company invites institutions and the general public to become a
shareholder in its company and in return raises funds to meet its various business objectives. A
company also gets listed in a stock exchange after completion of IPO.

Any individual can apply in an IPO. There are various categories under which investors can apply
in an IPO. The categories are Qualified Institutional Buyers (QIB), Non-institutional investors
(NII) and Retail individual investors (RII). There is an allotment reservation or quota for each
category with QIB- 50%, NII- 15% and RII-35%. Some companies offer a discount to retail
customers to encourage their participation.

IPOs can be categorized into 2 types based on their pricing mechanism- Book Building and Fixed
Price. A book building IPO involves investors bidding within a price range predetermined by the
company. A fixed price IPO involves bidding on a predetermined fixed price. Investors have to bid
in lots with each lot consisting of a minimum number of shares.

All IPOs have a bidding period, range from 3 days to a couple of weeks, during which bids are
invited. After the bidding process is over, the company management along with the Lead Manager
decides on the basis of allotment and the price (in the case of book building IPO). The shares are
allocated as per basis of allotment. In some cases, a lottery system is also used to pick investors
for allotment. This generally happens when an issue is oversubscribed many times the number of
lots available.

Once the allotment is done and shares transferred, the company gets listed on the exchange and
the shares of the company are eligible for trading as any other shares.

How to close a demat account

Demat accounts attract annual fees and maintenance charges. It is a good idea to close all your
inactive or zero balance demat accounts. If there are active balances, they can be consolidated into
one account and the reaming redundant demat accounts can be closed.

Closing a demat account involves visiting the DP office or branch by any of the demat account
holders and submission of requisite form and documents..

Form

31
The account holder can download the application form from the website of the depository
participant

Transfer
If the demat account has any balance (holdings), details of the account to which this balance needs
to transferred must be mentioned in the form. The transfer can also be carried out by filling up a
delivery instruction slip (DIS) before closure of the account.

Process
Once the form is submitted and is in order, it takes 7 to 10 business days to close the account.
.

Charges

There are no charges for account closure.

32
 CHAPTER 4

DATA ANALYSIS AND IINTERPRETATION

33
 4.1 Introduction

 Data analysis is based on Questionnaire

4.2 Data Analysis

Research is conducted for finding the solution of the problem. So to find the solution of
the problem data analysis and interpretation is must. There are some questions related to this
research to interpret the result.
The sample size in this study consisted of 67 individuals and data analyzed from the response of
these 67 individuals

4.2.1] Occupation
The basis purpose of this question.

Response Number of Response % of Response

Student 36 53.73

Govt. Employee 2 2.99

Business men 9 13.43

Pensioner / Retired 0 0.00

Any other 20 29.85

Total 67 100

Data : Primary Data

Graph no :4.2.1

34
Interpretation
This graph shows that occupation of student 53.73% , Govt. employee 2.99%,
Business men 13.43% ,pensioner /retired 0.00 % ,and any other 29.85%the survey of demat
account process. Most of the prefer for the student.

4.2.2] What is range of your monthly income in Rs ?

Response Number of Response % of Response

Below Rs. 5000 30 44.77

Rs. 10,000 - Rs. 20,000 27 40.30

Rs. 20,000 - Rs. 40,000 6 8.96

Rs.50,000 - Above 4 5.97

Total 67 100

Data : Primary Data

Graph no : 4.2.2

35
Interpretation
This graph shows that range of the income below Rs, 5000 44.77% , Rs.10,000
-Rs. 20,000 40.30% , Rs.20,000 - Rs 40,000 8.96% and Rs 50,000 - Above 5.97%

4.2.3.]Are you aware of stock market ?

The basic purpose of this question is to know how many people are
aware of the stock market and its activities.

Sources ( primary) No of Response % of Response

Response

Yes 57 85.07

No 10 14.93

Total 67 100

Data : Primary Data

Graph no :4.2.3

36
Interpretation
This graph shows that 57 individuals were aware of stock market. So it
can also be possible that investors will rise in near future.

4. 2.4]Are you aware of Demat Account ?

The basic purpose of this question is to know about awareness of
demat account among respondents.

Response Number of Response % of Response

Yes 53 79.10

No 14 20.90

Total 67 100

Data :Primary Data

Graph no : 4.2.4

37
Interpretation
The above table clearly shows that from a sample size of 67 respondents,
53 individuals were aware of demat account.

4.2.5] Do you trade - frequently or occasionally ?

This purpose of this question is to find out how many
persons trade frequently or occasionally
Response Number of Response % of Response
Frequently 24 35.82
Occasionally 43 64.18
Total 67 100
Data :Primary Data
Graph no :4.2.5

38
Interpretation
This chart shows that 43 individuals trade occasionally and 24
individuals trade frequently.

4.2.6] Are you satisfied with demat service provider ?

The purpose of this question is know satisfaction about demat

service provider.
Response Number of Response % of Response
Yes 50 74.63
No 17 25.37
Total 100 100
Data :Primary Data
Graph no : 4.2.6

39
Interpretation
This graph shows that most of the people were satisfied with demat
service provider.

4.2.7] In which of these financial Instrument do you invest into ?

This purpose of question know about the financial
instrument.
Response Number of Response % of Response
Mutual Fund 35 52.24
Bond 1 1.49
Online trading 26 38.81
Derivatives 5 7.46
Total 67 100
Data : Primary Data
Graph no : 4.2.7

40
Interpretation
This shows that although the mutual funds market is on the rise yet, the
most favored investment continues to be in the share market. So, with a more
transparent system, investment in the stock market can definitely be increased.

4.2.8] Heard about IIFL.Ltd ?

Response Number of Response % of Response

Yes 41 61.19
No 26 38.81
Total 67 100
Data : Primary Data
Graph no : 4.2.8

41
Interpretation
This graph shows that this brand image should be further leverage by the
company to increase is market share over its competitors.

4.2.9] Do you know about the facilities provided by IIFL.Ltd ?

Response Number of Response % of Response
Yes 36 53.74
No 31 46.26
Total 67 100
Data : Primary Data
Graph no : 4.2.9

42
Interpretation
Although there is sufficiently high brand equity among the target
audience yet, it o be noted that the aware of facilities provided by company.

4.2.10] Which company provided you a large number of product and services ?
Response Number of Response % of Response
IIFL.Ltd 28 41.80
ICICI 32 47.76
Angel broking 7 10.44
Total 67 100
Data : Primary Data
Graph no :4.2.10

43
Interpretation
41.80% have response of IIFL.Ltd , 47.76% have response of ICICI ,
10.44% have respondent of Angel broking.

IIFL Demat Account Review

Incorporated in 1995, Mumbai based India Infoline Limited is a diversified financial services
group. India Infoline Limited (IIFL) Securities is the retail broking wing of IIFL and offers equity,
commodities, currency, Futures and Options broking to retail and institutional and mutual funds to
its customers.

India Infoline Limited is one of the few broking houses that are depository participants with
NSDL customers. The company also offers other services such as research advisory and CDSL.
India Infoline Limited offers a 2-in-1 account wherein a demat account and a trading account is
linked together for seamless transactions between the two accounts.

Key Facts about IIFL

 23+ years of experience in the broking industry
 Part of a reputed financial services group with a global footprint

 1600+ branches across the country

 500+ stocks under research

 Member of SEBI, BSE, NSE, MCX, NCDEX, NSDL and CDSL

44
  Next generation trading platforms and tools

 Winner of several awards

India Infoline Demat Account

IIFL is the depository participant (DP) of NSDL and CDSL. IIFL only acts as an intermediary
between the customers and central depositories. The demat accounts are opened and managed
with NSDl and CDSL through India Infoline Limited.

IIFL charges an account opening fee from its customers. The depositories also charge demat
transaction charges for every transaction. There is also an Annual Maintenance Charge (AMC)
which customers have to pay every year.

10 Reasons to open Demat Account with India Infoline

1. 100% paperless account opening process
2. Flexibility to choose your central depository

3. Linked with the Trading A/c for seamless trading

4. Hold all your shares, mutual funds in electronic format

5. Access to in-depth research and expert recommendation

6. Dedicated Relationship Manager

7. Facility to freeze the demat account

8. Online access to the Demat account

9. Dedicated Customer Support with multiple channels of servicing

10. Branch facility to address demat related issues

IIFL Demat Acct Opening Fee

To open a new demat account with IIFL, customer has to pay demat account opening fee. Most
share brokers also charge Annual Maintenance Charges (AMC). AMC is yearly fee charged to the
customer to maintain the demat account with the broker. Find the IIFL Demat Account Opening
Charges and IIFL AMC as below:

45
  IIFL DP Account Opening Fee: ₹555
 IIFL DP Account AMC: ₹ 400 (One time)

 Share Debit Transaction Fee: 0.05% (Min ₹15 and max ₹100)

 Is demat account mandatory?: No

IIFL Demat Account Charges

India Infoline (IIFL) Depository Service Charges for Resident Retail Customers

Sr Services Charges

1 Annual Maintenance Charges (AMC) ₹400

2 Debit Charges 0.025% (minimum ₹25 per

transaction)

3 Credit Charges Nil

4 Pledge creation ₹50

5 Pledge closure -

6 DEMAT - Per certificate ₹15

7 REMAT - Per certificate Per 100 Units/shares ₹15

(Whichever is higher)

8 Conversion of MF units/Destatmentisation Per SOA ₹15

9 Reconversion of MF units in to SOA or ₹15

Redemption/Restatmentisation Per SOA

10 Postal Charges per request shall be charged separately ₹40

46
IIFL NRI Account Review
IIFL Securities is a full-service broker offering online trading services to NRIs. It offers 2-in-1
accounts, combining demat and trading accounts, to NRIs. The 2-in-1 account enables trading
across stocks, equity derivatives and investments in Mutual Funds, IPOs, and Bonds.

The company is awarded Qadat Al Tagheer (QAT) awards by UAE in 2018 for offering the best
NRI financial advisory services in the country. It has a global presence with offices in India,
Canada, Hong Kong, Mauritius, Singapore, Switzerland, United States, UK, and UAE.

IIFL NRI brokerage charges for equity delivery are 0.50% per executed order.

IIFL NRI Investment USP:

 Wide Range of Investment Products

 Dedicated Relationship Managers

 In-house Research Team

 Online Account Opening through Video Verification

IIFL NRI Services

To trade or invest in the Indian stock market, NRIs need to open the following account:

1. NRI Trading Account

2. NRI Demat Account

3. NRI Bank account (NRE or NRO PIS)

4. Custodial Account (For trading in Equity F&O)

IIFL offers trading & demat accounts. The bank and custodial account have to be opened with
other companies. In addition, NRIs needs PIS permission for investing in stocks and custodial
participant code (CP code) to trade in equity derivatives (F&O).

IIFL supports Axis Bank HDFC Bank and Yes Bank for NRI Bank accounts. These banks are
designated by RBI to provide PIS Certificate to NRIs.

IIFL supports ICICI for the custodial account which is required for trading in equity derivatives.

1. IIFL NRI Trading Account

NRI Trading account is for NRIs to place buy or sell orders at stock exchanges in India. IIFL
provides online trading platforms to invest/trade in equity, derivatives, mutual funds, bonds and
IPOs.

47
NRIs need NRE account to invest in equity delivery segment and NRO account to invest in
mutual funds, and F&O segments.

NRIs can open two separate accounts based on NRE/NRO benefits.

2. IIFL NRI Demat Account

IIFL NRI Demat account is an online account used to hold the securities purchased through the
IIFL trading account. This account ensures the safekeeping of shares from physical theft and
damages.

IIFL is a depository participant (DP) of NSDL and CDSL, the central depositories. This
membership allows IIFL to offer demat services to resident and non-resident Indians.

IIFL NRI Demat Account Highlights:

 The NRI Demat Account is the same as the Resident Demat Account.
 Demat account is mandatory to invest in Indian stock market.

 Corporate benefits like dividend and interest are automatically credited in your linked NRI
Bank Account.

 Allow investing in mutual funds, IPOs, and Bonds.

 Get online access to your demat account.

NRI demat account charges and rules to know more about demat accounts for NRIs.

IIFL NRI Trading Process

Once all the accounts are opened, NRIs can trade online in desired stocks. Here are steps to trade
online:

1. Transfer money into PIS account

NRIs have to transfer the money for investing or trading in their PIS Bank Account. The bank will
inform the broker about the account balance in PIS Account and the broker will update the trading
limit accordingly.

2. Place Buy/Sell Order

Using any of the IIFL NRI trading software, place a buy or sell order. If the bank has sufficient
funds to proceed with the order, the trade is executed per order basis. You will receive a
confirmation message.

48
3. Submit Contract Note

IIFL sends the contract notes for buy/sell transactions to the banks at the end of the day. The bank
transfers the fund to the broker or broker transfers fund to the bank based on buy/sell order.

4. Stock Settlement

The stocks are credited or debited to/from Demat account in T+2 days based on buy or sell order
request.

Note:

 The investment amount for IPOs, Rights and Bonus shares will be debited or credited from
Non-PIS Bank Account instead of PIS account.
 Separate transactions will be settled by the banks based on the purchase and sale of
securities.

 In case of insufficient balance in PIS bank account, the payment will be rejected,

 The NRIs have to transfer the amount from a savings bank account to PIS account before
placing an order.

 Do not trade or invest in banned and caution scrip's. The list of banned scrip's is available
on the RBI website.

 NRIs cannot place intraday and BTST orders.

 NRIs cannot trade in commodities, currencies and their derivatives.

IIFL NRI Trading Account Chargers

IIFL NRI brokerage charges for trading in Equity and Equity Derivatives.
Transaction Fee

NRI Account Opening Charges ₹750

NRI Account AMC ₹400 + GST

Equity Delivery Brokerage 0.50%

Equity Future Brokerage

49
Equity Options Brokerage

Other

IIFL NRI Trading Software Review

IIFL offers free access to multiple trading software to NRIs.

1. IIFL Trader Terminal (Desktop Trading Software)

2. IIFL Trader Terminal Web (Online Trading Website)

3. IIFL Markets App (Mobile Trading App)

4. IIFL Mutual Fund App

1. IIFL Trader Terminal

Trader Terminal is an Installable Trading Software for high-frequency traders. It is the

most advanced trading platform with superior charts, analysis and faster execution. IIFL
NRI customers can use this platform to trade at BSE and NSE.

2. IIFL Trader Terminal Web

Trader Terminal Web is a browser-based website for IIFL customers. It offers convenient
investing from any computer.

3. IIFL Markets App

IIFL Market App is a mobile trading app by IIFL. This advanced trading app is designed.

4. IIFL Mutual Fund Web and Mobile App

IIFL offers Online Mutual Fund (MF) investment to NRI through its website and mobile
app. The IIFL Mutual Fund App offers online paperless MF investment from anywhere in
the world.

50
 IIFL Investment Options
. The investment options available to an NRI at IIFL
Investment Option Status

Stocks Yes

Mutual Funds Yes

IPO Yes

Others

IIFL NRI Account Opening Process

The IIFL NRI account can be opened online as well as offline. Follow the steps below for online
account opening:

51
 1. Get PIS Permission

NRIs have to open NRE/NRO account with the designated banks (Axis, HDFC, Federal
and Yes Bank) and get PIS permission from RBI through the bank.

2. Login Details

Visit the company website and click on 'NRI' under 'Personal Finance' on the top menu.
NRIs have to fill the Name, Email ID and mobile number to register with IIFL for the
further process.

3. Personal Details

Just fill your PAN number, Aadhar number, and Date of Birth, and the rest of the details
will be fetched from the ID cards.

4. Address Details

NRIs have to mention their address to get in touch with the broker.

5. Bank Details

You have to fill NRE bank name, account number and branch name or IFSC code to add
the bank.

6. Other Details

If you are a US resident, then you have to provide a few details under FATCA as well.

7. Upload Documents

Upload the required documents and submit the application.

Alternatively, NRIs can give a missed call on 08066719101 or fill and online inquiry form to get a
call back from a Relationship Manager. The RM will assist you in account opening.

IIFL NRI Trading Account Documents

An NRI has to submit below-mentioned documents while opening an IIFL 2-in-1 account. All the
photocopies should be attested by a notary public.

 Passport (PIO and OCI card is required and Place of birth as India)
 Visa
 PAN Card

52
  Overseas Address Proof
 PIS Permission Letter
 Proof of Bank Account

IIFL NRI Mutual Fund

IIFL customers can use the IIFL Mutual Funds mobile app for investing in various schemes. With
this app, you can Buy, Sell, Start SIP, Track and Monitor various types of Mutual Funds and get
recommendations anytime, anywhere. Key features of IIFL NRI Mutual Fund includes:

 Free mobile platform to buy or sell mutual funds from the top AMCs.
 NRIs can also choose SIP investment option through E-mandate.
 Get research insights on mutual funds for better investment decision making.
53
  Monitor your fund performance from anywhere, anytime.

IIFL NRI Customer Care

IIFL NRI Support Desk contact information. Find IIFL NRI contact number.

IIFL NRI Helpline Number

IIFL NRI Customer Care Number +91 22 4007 1000

IIFL NRI Customer Care Email ID cs@indiainfoline.com

IIFL NRI Trading Account Advantages

 Full-service broker with a dedicated relationship manager, research reports and a wide
range of products & services.
 Online account opening process for NRIs.

 Convenient Mutual Fund investment through a mobile app or website.

 Part of IIFL Group, a financial services conglomerate.

IIFL NRI Trading Account Disadvantages

 Charges high brokerage as compared to discount brokers such as Zerodha and ProStocks.
 Doesn't offer an NRI 3-in-1 account. NRIs have to open an NRI bank account and
custodian account on their own.

IIFL Open Account | Account Opening Process Review

India Infoline (IIFL), subsidiary of India Infoline Group is a financing company based in India.
They offers research based advice for financial products which includes Stocks, Derivatives,
Commodities, Insurance, FD's, Loans, Bonds etc.

54
IIFL Account Opening
To open a demat account with IIFL, customer has to fill up an account opening form by
approaching a depository participant (DP). Along with the account opening form, customer has to
attach photocopies of some documents for proof of identity and proof of address. Once the
account opens they gets the demat account number. Customers are required to pay the charges
towards:

1. Dematerialisation and rematerialisation of your securities

2. Annual account maintenance

3. Transactions fees (only for sell transactions)

Similar to the bank account, one can open demat account in single / joint names / multiple
accounts. If the account is open for the minor, guardian should be appointed for operating the
account.

IIFL Account Charges

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

2. IIFL customer may close the accounts at any point of time. No charge is applicable for
closure of DP account.

3. There is no minimum number of shares that have to be kept in the demat account.

4. If demat account is closed in between of the year, annual maintenance charges shall be
levied proportionately for each quarter.

5. No charge for transfer of holdings from one DP to another DP, if investor is not satisfied
with the services of your existing DP.

IIFL Account Nomination

Nomination smoothens the process of transmission of your securities to your heirs, upon demise.
For physical shares, you have to avail nomination separately for each company in which you hold
shares / debentures. Whereas, by availing nomination for your demat account, all your
investments in that account is covered under that nomination.

Dematerialization/Demat your shares with IIFL

To demat your physical certificates, you should approach the DP and submit the following
documents:

1. Dematerialization Request Form (DRF)

55
 2. Physical certificates by marking ââ‚Â-Å“Surrendered for
Dematerializationââ‚Â-

3. Separate DRF has to be filled for each ISIN.

IIFL Account Opening Charges

Customer pays account opening fee for trading account opening with IIFL. The account opening
fees are as below:

 IIFL Account Opening Charges (Trading Acct): ₹750

 IIFL AMC Charges (Trading Acct): ₹0

 IIFL Account Opening Charges (Demat Acct): ₹555

 IIFL AMC Charges (Demat Acct): ₹ 400 (One time)

IIFL Brokerage Charges, Fees, AMC, Transaction Charges 2019

Incorporated in 1995, India Infoline (IIFL) is the brokerage firm of India Infoline Group, a fastest
growing financial services solution provider in India. India Infoline is listed on BSE (532636) and
NSE (INDIAINFO) for securities trading. IIFL offers trading platform and research-based advice
for entire range of financial products including Stock.

IIFL offers stock trading account and demat account services. Customer pays the fees,
commission and taxes while trading with IIFL. IIFL fee structure and trading commission rates
are explained as below.

56
 IIFL account opening charge & IIFL AMC 2019

Transaction Fee

Trading Account Opening Charges (One ₹750

Time)

Trading Annual Maintenance Charges ₹0

AMC (Yearly Fee)

Demat Account Opening Charges (One ₹555

Time)

Demat Account Annual Maintenance ₹ 400 (One time)

Charges AMC (Yearly Fee)

57
 IIFL Brokerage Charges 2019

Customer pays commission (brokerage) when buying or selling stocks through IIFL. The brokerage
charges for equity, commodities and currency derivative trading for IIFL are explain as below.

IIFL Brokerage Plan - Standard Account

Segment Brokerage Fee

Monthly Fee (Fixed)

Equity Delivery 0.50%

Equity Intraday 0.05%

Equity Futures 0.05%

Equity Options 1% of Premium or ₹100 per lot

whichever is high

Currency Futures ₹25 per lot

Currency Options 1% of Premium or ₹100 per lot

whichever is high

Commodity Futures 0.05%

Commodity Options

58
IIFL Transaction Charges (Exchange Turnover Charge)
A combination of Exchange Turnover Charge and Trade Clearing Charge. Know more
about Transaction Charges .

IIFL transaction charges

Segment Transaction Fee

Equity Delivery 0.00325%

Equity Intraday 0.00325%

Equity Futures 0.0021%

Equity Options 0.051% on premium

Currency 0.0021%
Futures

Currency 0.051% on premium

Options

Commodity 0.0028%

IFL Ratings

59
 IIFL Review Ratings (based on 106 votes by the customers)

Overall Fees Brokerage Usability Customer

Rating Service

2.7/5 2.9/5 2.6/5 3.3/5 2.7/5

IIFL Mobile App Review | App Demo, Charges and Download

IIFL Group is a diversified financial services company with a global footprint. Retail broking
services are provided by IIFL Securities, a part of the IIFL group. IIFL Securities offers trading
and research advisory services in Equities, Commodities, Currency, Future and Options across
NSE< BSE, MCX and NCDEX. It also offers Mutual Fund investments and IPO application
services to its customers.

India Infoline Limited offers access to next-generation trading platforms to its customers. IIFL
customers can use platforms like TT Exe, TT Web, IIFL Markets app and IIFL MF app to trade in
their desired instruments.

IIFL TT Trading Platform

Trader Terminal (TT) is the flagship trading platform offered by IIFL. TT is available in desktop,
web and mobile versions. TT is the proprietary software of the company.

TT is a powerful trading tool with advanced features, user-friendly interface and offers single-
click access to all exchanges and segments. The platform offers IIFL customers the convenience
to trade in stocks, derivatives, mutual funds, IPOs, currency and commodity, from a single screen.

TT Edge

TT Edge is a next generation trading terminal by IIFL. IT enables customers to become a smarter
and informed investor through real time position build-up, company news, IIFL views, alerts, etc.

Key tools available in TT Edge include:

 Company Healthscrore
 Technical Analysis

 Peer Comparison

 Market Analysis

60
  Heat map

 Investment strategies based on risk profile

 Portfolio Analysis

 Real Time News

TT Edge is build with later internet technology. It is easy of navigate and high speed trading
terminal. It offers superior charting and analytics capabilities for frequent traders.

TT Trading Platform Features:

 Live Streaming quotes

 Create multiple market watches

 Single-click access to depository and MTM profit/loss statement

 Advanced charting with tools for deep technical analysis

 Market Depth and Market Analyser

 Customizable view to suit individual trading needs

 Hot Keys for faster trading

 Access to P/L summary, digital contract notes, bills, and confirmation notes etc.

 Access to research reports and news updates

IIFL Mobile Trading App - IIFL Markets

IIFL Markets is a mobile trading app developed by IIFL. The app has won the best mobile app for
stock markets at Zee Business awards.

The IIFL Markets mobile enables faster trading and provides good trading features for faster
trading, charts for in-depth analysis, live stock quotes, market watch and access to expert research
reports etc. It also gives a complete view of P&L, net positions and margins etc.

The app is available for Android, iPhone and iPad.

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 IIFL Markets Features
The IIFL Markets is a mobile trading app. Some of the major features of the mobile app are-

 Place Buy/Sell orders for Equities, Commodity, Currency and Derivatives

 Single platform access to NSE, BSE, MCX and NCDEX

 Apply for IPOs

 Create customized market watch

 Secured trading with MPIN based login

 Advanced charts with the facility to draw, study and analyze

 Notifications and alerts

 Free access to research reports

 Updates on the latest events with Live TV and videos

 One tap to customer support

 What's not available on IIFL Markets?

 Back testing

 Scanners

 Market Depth

Supported Platform / Devices

India Infoline Limited is available on both Apple is and Google Android smart phones.

1. IIFL Markets Trading App for iPhone (Apple)

IIFL Mobile Trading app for is (Apple iPhone) is available at iTunes.

2. IIFL Markets App for Android Phone

IIFL Mobile Trading app for Android phones is available at Android Play Store.

IIFL Margin Exposure Limit, Leverage for Intraday and F&O

IIFL Span and Exposure Margin

Trading Segment Margin IIFL

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 Equity Delivery Upto 3x with 18% interest per year

Equity Intraday Upto 20x

Equity Future Upto 3x

Equity Options 3x for shorting

Currency Future Upto 2x

Currency Options 2x for shorting

Commodity Future Upto 3x

IIFL IPO Review

India Infoline Securities is a part of IIFL group, a diversified financial services company. The
company offers broking and research services to individuals and institutions. It offers trading
services in equity, derivatives, currency and commodities across BSE, NSE, MCX and
NCDEX. It also offers Mutual Fund services to its customers.

IIFL offers research and expert recommendations to its customers. It has an experienced team
of over 30 research experts who publish a range of daily/weekly/monthly reports on market
view, IPOs, company stocks and sectors.

India Infoline Limited offers advanced trading platforms and tools to deliver fast and reliable
trading experience. Customers can access the platform on desktop, web and mobile app and
trade as per their requirements.

How to apply in an IPO through IIFL?

IIFL offers IPO application services to its customers.

India Infoline Limited offers IPO application services as a key product offering. IIFL
customers can use the proprietary trading platform of the company as well as its website to

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 apply for an IPO. It is one of the most convenient and the fastest way to apply for an IPO. You
can apply for both IPO and FPO (follow-on public offer) with IIFL.

IIFL IPO Charges

There are no charges or fees to apply for an IPO with IIFL. However, you will have to pay
standard brokerage fees when you sell the shares allotted through IPO.

Checking IPO application status with IIFL

On allotment, you will get a message/email from the company for credit of shares in your
Demat account.

You can check the IPO application status on the IPO registrar or Lead Manager's website.

Comparison Sharekhan vs. IIFL

Overview of Sharekhan & IIFL

Overview Sharekhan IIFL

Company Type Private Public
Broker Type Full Service Broker Full Service Broker
Headquarters Mumbai, India Mumbai, India
Founder Jaideep Arora Nirmal Jain
Established Year 2000 1995

Sharekhan vs. IIFL Customer Ratings

Customer Ratings Sharekhan IIFL

Experience 7.5/10 8.0/10
Products & Services 7.0/10 8.0/10
Brokerage Charges & Fees 6.5/10 6.3/10
Stock Research & Advisory 7.0/10 6.5/10
Trading Platforms 7.5/10 7.0/10
Overall Ratings 7.1/10
Star Ratings ★★★★☆ ★★★★☆
Total Client Reviews 1236 293

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 Sharekhan vs. India Infoline Demat Account

Demat Services Sharekhan IIFL

Depository Source NSDL & CDSL NSDL & CDSL
Account Opening Charges Zero Rs.1300
Demat AMC Charges Free or Rs.300 per Annum Free or Rs.300 per Annum
Trading AMC Charges Free Free
Margin Money Zero Minimum Rs.25,000
Offline to Online Yes Yes

IIFL vs. Sharekhan Brokerage Charges

Sharekhan
Brokerage Charge & Fees IIFL
Equity Delivery Trading 0.50% 0.50%
Equity Intraday Trading 0.10% 0.05%
Commodity Options Trading 0.10% 0.05%
Equity Futures Trading 0.10% 0.05%
Rs.100 per Lot or 2.5% on Rs.100 per Lot or 1% of
Premium (Takes higher Premium (Takes higher
Equity Options Trading amount) Amount)
Currency Futures Trading 0.10% 0.05%
Rs.30 per Lot or 2.5% on Rs.100 per Lot or 1% of
Premium (Takes higher Premium (Takes higher
Currency Options Trading amount) Amount)
Minimum Brokerage Rs.20 Rs.0.05 per Share
Demat AMC Charges Free or Rs.300 per Annum Free or Rs.300 per Annum
Trading AMC Charges Free Free
Margin Money Zero Minimum Rs.25,000
Sharekhan Brokerage
Brokerage Calculator Calculator IIFL Brokerage Calculator

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 India Infoline & Sharekhan Other Charges

Other Charges Sharekhan IIFL

Transaction Charges 0.00275% of Total Turnover
STT 0.0126% of Total Turnover
SEBI Turnover Charges 0.0002% of Total Turnover
Depends on State (very
Stamp Duty minimal)
18% of (Brokerage +
GST Transaction Charges)
0.00325% of Total Turnover
0.0126% of Total Turnover
0.0002% of Total Turnover
Depends on State (very
minimal)
18% of (Brokerage +
Transaction Charges)

Compare IIFL & Sharekhan Offers

Offers Sharekhan IIFL

Free Demat Account ✔ ✔
Free Trading Account ✔ ✖
Discount on Brokerage ✔ ✖
Trading Happy Hours ✖ ✖
Flexible Brokerage Plans ✔ ✔
1 Month Brokerage Free ✔ ✖
Holiday Offers ✖ ✖
Referral Offers ✔ ✔
Zero Brokerage for Loss
Making Trades ✖ ✖

Services of Sharekhan vs. IIFL

Services Sharekhan IIFL

Demat Services ✔ ✔

Trading Services ✔ ✔

3 in 1 Account ✖ ✖

Intraday Services ✔ ✔

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 IPO Services ✔ ✔

Stock Recommendations ✔ ✔

Robo Advisory ✔ ✖

PMS ✔ ✔

Trading Institution ✔ ✖

Trading Exposure Upto 32x Upto 10x

IIFL & Sharekhan Research& Advisory

Research & Advisory Sharekhan IIFL

Fundamental Reports ✔ ✔
Research Reports ✔ ✔
Company Reports ✔ ✔
Annual Reports ✔ ✔
Company Stock Review ✔ ✔
Free Stock Tips ✔ ✔
IPO Reports ✖ ✔
Top Picks ✔ ✔
Daily Market Review ✖ ✔
Monthly Reports ✔ ✔
Weekly Reports ✔ ✔
Offline Advisory ✔ ✔
Relationship Manager ✔ ✔

Sharekhan vs. IIFL Exposure/Leverage

Exposure / Leverage Sharekhan IIFL

Equity Delivery Upto 15x Upto 5x
Equity Intraday Upto 32x Upto 10x
Equity Futures Upto 15x Upto 7x
Equity Options Upto 10x Upto 5x
Currency Futures Upto 8x Upto 8x
Currency Options Upto 10x Upto 5x
Commodities Upto 10x Upto 8x
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 Sharekhan vs. IIFL Product

Products Sharekhan IIFL

Equity Trading ✔ ✔
Commodity Trading ✔ ✔
Currency Trading ✔ ✔
Options ✔ ✔
Futures ✔ ✔
Mutual Funds ✔ ✔
Forex ✖ ✔
Banking ✖ ✖
SIP ✔ ✔
Insurance ✖ ✖

Sharekhan vs. IIFL Trading Platform

Trading Platforms Sharekhan IIFL

Desktop Platform – Windows ✔ ✔

Desktop Platform – Mac ✔ ✔

Desktop Browser Platform ✔ ✔

Mobile Site Platform ✖ ✔

Android App Platform ✔ ✔

iOS App Platform ✔ ✔

Windows App Platform ✖ ✖

Other Mobile OS Platform ✖ ✖

Real time Updates ✔ ✔

Portfolio Details ✔ ✔

Online MF Buy ✔ ✔

News Flash ✔ ✔

Research Reports ✔ ✔

Easy Installation ✔ ✔

Global Indices ✔ ✔

Stock Tips ✔ ✔

Personalized Advisory ✔ ✔
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 Interactive Charts ✔ ✔

Live Markets ✔ ✔

SMS Alerts ✔ ✔

Email Alerts ✔ ✔

Multi Account Management ✔ ✔

Sharekhan vs. IIFL Customer Support

Customer Support Sharekhan IIFL

Dedicated Dealer ✔ ✔
Offline Trading ✔ ✖
Online Trading ✔ ✔
24*7 Support ✖ ✖
Support Number 1800 22 7500 1800 3000 1155
Email Support ✔ ✔
Chat Support ✔ ✔
Toll Free Number 1800 22 7500 1800 3000 1155
Branches 126 120

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 CHAPTER 5

FINDINS AND SUGGESTIONS

70
5.1 Findings

1. Preference of Investment :

Consumers want to invest 52.24 % Mutual Fund , 1.49% Bond , 38.81 %

online trading & 7.46% derivatives.

2. Awareness on stock market :

85.07% consumers are aware of stock market and 14.93% consumer are
not aware of stock market .

3. Awareness of IIFL.Ltd :

61.19% consumers are know about IIFL.Ltd and 38.81% consumers are
not know about IIFL.Ltd.

4. Awareness about facilitates provided by IIFL.Ltd :

53.74 % consumers are aware about the facilities provided by IIFL .Ltd
and 46.26% consumers are not know about the facilities provided by IIFL.Ltd.

5. Awareness of demat account :

79.10% of people have heard about demat account and 20.90% of

people are not aware of demat account.

6. Awareness about satisfied with demat service provider :

74.63% consumers are aware about satisfied the demat service provider
and 25.37 % consumers are not satisfied the demat service provider.

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7. Preference of large number of product and service :

41.80 % IIFL.Ltd, 47.76% ICICI, 10.44% Angel broking of

large number of product and service.

8. Trade frequently or occasionally :

735.82% consumers are trade frequently and 64.18%

consumers are trade occasionally.

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5.2 Suggestions

1. The Brand image of IIFL LTD. is good in market but according to customer satisfaction
the company has to provide the better service. And also change the Market strategy.

2. They should focus on print and electronic media advertisements to make more people
aware about them.

3. They should provide proper guidance to their customers about demat.

4. They should provide offer and facilities to their customers to increase their attractiveness
about demat.

5. For opening an account they require lots of signatures in a kit, which should be reduced.

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 5.3 Conclusion

 It's not mandatory to have Demat to invest in mutual funds. However , Whether it's wise
or not to open a Demat account depends on investors' requirement and understanding of
the product.

 Demat account is compulsory to trade in equity shares, but these day due to advancement
in technology stock exchange came up with their platform for mutual funds investments,
so for associated benefits, these depository participants have also started offerings
transaction in mutual funds, along with other products like NPS , Bonds, corporate FD S,
etc.

 Demat Accounts are not limited to your stock market A demat account can get you allot
more benefits that you can look for. Here is one of the article that can help you know other
investment options where you can invest your money in.

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 BIBLIOGRAPHY

 www.iifl.com

 wwwmoneycontrol.com

 Wikipedia

75
 ANNEXURE

NAME :

AGE :

SEX : a) Male b) Female

OCCUPTION :

INCOME :

1. Occupation

a) student

b) Govt. employee

c) Business men

d) Pensioner / Retired

e) Any other

2. What is range of your monthly income in Rs ?

a) Below Rs.5000
b) Rs. 10,000 - Rs. 20,000
c) Rs.20,000 - Rs. 40,000
d) Rs.50,000 - Above

3. Are you aware of stock market ?

a) Yes

b) No

4. Are you aware of Demat Account ?

a) Yes

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 b) No

5. Do you trade - frequently or occasionally ?

a) Frequently

b) Occasionally

6. Are you satisfied with demat service provider ?

a) Yes

b) No

7. In which of these financial Instrument do you invest into ?

a) Mutual fund

b) Bond

c) Online trading

d) Derivatives

8. Heard about IIFL.Ltd ?

a) Yes

b) No

9. Do you know about the facilities provided by IIFL.Ltd ?

a) Yes

b) No

10. Which company provided you a large number of product and

services ?
a) IIFL.Ltd

b) ICICI
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c) Angel broking

78