PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED ON 31ST MARCH, 2006

(Rupees) (Rupees)
Schedule
Income
Investment Management and Advisory fees 773,125,295 437,442,163
Portfolio Management Fees 121,053,890 5,275,879
Interest G 777,839 1,990,863
Dividend on long term investments 31,639,198 23,903,358
Profit on Sale/Redemption of long term Investment (Net) 5,124,959 14,699,879
Provision no longer required written back - 18,494,472
Interest on Income Tax Refund 494,232 142,247
Other Income 2,230,464 362,555
934,445,877 502,311,416
Expenditure
Salaries and benefits to employees H 209,597,809 128,670,176
Administrative and other expenses I 164,693,259 99,192,090
Marketing and Publicity Exps. J 97,850,533 72,948,678
Depreciation 11,342,043 7,817,493
Loss on Sale of Fixed Assets (Net) 82,107 209,236
Preliminary Expenses Written Off - 34,026
Deferred Revenue expenditure written off 11,898,233 11,898,233
495,463,984 320,769,932
Profit Before Tax 438,981,893 181,541,484
Provision Investor’s awareness about the depository systems

1. Introduction of the study

2. Need of the study
3. Objectives of the study
4. Need of the study
5. Research methodology
6. Reference period
7. Limitations of the study
8. An overview of National Security Depository Ltd (NSDL)
9. Theoritical aspects of depository aspects
10. Analysis and interpretation
11. Conclusion
12. Suggestions
13. Bibliography

Abstract : Indian project

Technology is revolutionizing every field of human endeavor and activity. Indian capital
market is barrow meter of Indian economy; one of them is introduced technology into
capital market. A major development in the Indian capital market has been setting up of
Depository system. The rapid growth in number, volume and value of securities in the
Indian capital market exposed the limitations of handling and dealing securities in the
physical / paper mode; the short coming of the market became in the manifest in terms of
bad deliveries, delays in transfer and irregular settlement etc. depository used as elixir,
bringing solution for all those problems.

The main objective’s of depository systems are to accelerate scrip less trading, to make
trust in individual investors participation in depository system and to create a competitive
environment and be responsive to user’s interest and concern. A depository holds
securities in electronic forms and provides all services related to transactions of shares/
debt instruments. A depository interacts with clients through a depository participant with
whom the client has to maintain a D-mat account.

Depository means “one place where something is deposited for safe keeping; one who
receives a deposit money, securities, investments or other property; a person to whom
something is entrusted; a trustee; a person or group entrusted with preservation or safe
keeping of something”. The rapid growth in number, volume and value of securities in
the Indian Capital Market is taking place, large number of companies issuing shares
through IPO’s, which requires the services of the Depository system. It will take much
time of allotment, refund in physical form of transactions. To reduce the delay in
transactions and to eliminate malpractices Depository system helps allot.

More abstract from Investor’s awareness about the

depository systems
[...] The NSDL apprises of the credit to Depository Participant. 7. Subsequently, the
investor is apprised of his credit in his account. Rematerialization: Rematerialization is
the exact reverse of dematerialization. It refers to the process of issuing physical
securities in the place of the securities held electronically in book-entry form with a
Depository. Under this process, depository account of a beneficial owner is debited for
the securities sought to be rematerialized and physical certificates for the equitant number
of securities are issued. [...]

[...] India has adopted dematerialization route to depository. In a Depository system the
investors stand to gain by way of efficient settlements, lower costs and lower risk of theft
or forgery, etc. But the implementation of the system has to secure and well governed.
All the players have to be conversant with rules and regulations as well as with the
technology for processing. The intermediaries in this system have to obey the rules and
regulations laid by the regulatory Authorities. Depository Services through Depository
Participants: The Depository can provide their services to investors through their agents
called Depository participants. [...]

[...] They are the intermediaries between the depository and the investors. The
relationship between the depository participants and the depository is governed by an
agreement made between the two under the depositories act. In a strictly legal sense a
depository participant is an entity that is registered as such with SEBI under the
provisions of the SEBI Act. NSDL offers a host services to the investors through its
network of depository participants. Issuer / R & T Agent: Corporate / companies which
issue any kind of security are known as “Issuer” in the Depository System. [...]
[...] d) If trades are routed through depository; there is no need to pay stamp duty. KEY
FEATURES OF DEPOSITORY SYSTEM IN INDIA Multi-Depository System: The
depository model adopted in India provides for a competitive multi- Depository system.
There can be various entitles providing depository services. DEMATERIALISATION
AS AGAINST IMMOBILIZATION The model adopted in India provides only for
dematerialization of securities. This is a significant step in the direction of achieving a
complete paper-free securities market. Many of the developed countries have opted for
immobilization (e.g. [...]

[...] • To know the awareness of investors towards Depository system. • To present

suggestions for improving efficiency. SCOPE OF STUDY It covers the depository
system of India i.e. how the depository evolved in India, functions and regulations of
depositories various institution and individuals which will be participated in the process
(DPS, CCS, R&T Agent, companies, Investors etc,) The process of various activities and
special services of depository and it covers NSDL. METHODOLOGY OF THE STUDY
In order to archive the above objectives both the primary and secondary data one
considered. [...]