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PROJECT REPORT ON

³CUSTOMER AWARENESS ABOUT Demat Account´


In

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE


AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION OF
RAJASTHAN TECHNICAL UNIVERSITY, KOTA

Submitted to : Submitted By: -


Mr. Atul Gupta Chandraveer Singh Shekhawat
Lecturer MBA 3rd SEM

SWAMI KESHWANAND INSTITUTE OF TECHNOLOGY MANAGEMENT


& GRAMOTHAN, JAIPUR
(2009-2011)

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[ 

PREFACE‘

The successful completion of this project was a unique experience for me


because by visiting many place and interacting various person, I achieved a
better knowledge about sales. The experience which I gained by doing this
project was essential at this turning point of my career this project is being
submitted which content detailed analysis of the research under taken by
me.

The research provides an opportunity to the student to devote his/her skills


knowledge and competencies required during the technical session.

The research is on the topic ³Parasram Holdings Demat Account´

Chandraveer singh Shekhawat






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Acknowledgement

It was a great opportunity for me to work with Parasram Holdings Ltd.,


pioneers in the field of Finance Industry. I am extremely grateful to all those
who have shared their expertise and knowledge with me and without whom
the completion of this project would have been virtually impossible.

Firstly, I would like to thank our Company Guide Mr. Aditya Parmar, Training
Manager who has been a constant source of inspiration for me during the
completion of this project. He gave me invaluable inputs during my endeavor
to complete this project.

I am also extremely grateful to Mr. Kamlesh Kumar Agnani, Training


Manager, to have given me this opportunity to work with him and gain
valuable insights.

I am indebted to all staff of Parasram Holdings Ltd for their valuable support
and cooperation during the entire tenure of this project. Not to forget, all
those who have kept my spirits surging and helped delivering my best.

I thank my faculty guide Mr. Atul Gupta who helped me out at every critical
situation that I faced in my project and gave me his valuable advice to solve
problems.

I want to give my special thanks to all members of SKIT for providing me


opportunity to work on this project with this great organization.

At last I would like to thank all the respondents met in the preparation, who
gave their valuable time to provide us required information and their honest
support to complete our project in time.

CHANDRAVEER SINGH SHEKHAWAT

Ú 

MBA III SEM

DECLARATION

I hereby declare that the Summer Training Report, which is entitled


³CUSTOMER AWARENESS ABOUT Demat Account´, is compiled and
submitted by me is my original frame work. The Procedure in the report is
based on the Standards provided in ISO 9001. I have not copied the data
from any previous report. However, my Project Guide Respected Mr. Atul
Gupta helped me at various points while preparing this report.

CHANDRAVEER SINGH SHEKHAWAT

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EXECUTIVE SUMMARY

Training and development is the essential job of human resources


department of every organization. It is necessary to help employees in
dealing with the changes caused by the changing business environment.
I, CHANDRAVEER SINGH SHEKHAWAT had done my project in PARASRAM
HOLDINGS LTD. which is a leading company in finance industry. The main
objective of my project was to ³Customer Awareness of Demat Account´.
The training design included departments, and their training needs, month of
training, sequence of training and methods of training. A proper matrix was
formed differently for each level highlighting the requirements to be trained.
It also includes different skills workshop including the contents, objectives of
the skills imparted to the employees. Most important in training process are
the ice breakers and games which help the trainees in feeling relaxed and
refreshed.

Each level in organization was considered as separate entity and training


procedure for them was also different.

 

TABLE OF CONTENTS FOR PROJECT REPORT

Introduction 8
Company Profile 9
SWOT Analysis 18
Discussion on Training 20
Demat Account of Parasram Holdings 25
Buying and Selling 34
Need for the study 38
Competitors 39
Objective 43
Research Methodology 44
Data Analysis and Interpretation 47
Observation and Finding 57
Limitation 59
Suggestion 60
Summary and Conclusion 61
Bibliography 62
ANNEXURE (contains questionnaire) 63

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Introduction

COMPANY PROFILE
Parasram Holdings House Limited

COMPANY BACKGROUND
Philosophy of the Company

Parasram group is a well-reputed and renowned Financial Market Player in


India. A pursuit that is focused on customer satisfaction and growth.

The group is a proud winner of customer¶s loyalty. Clients registered in


1996-97 are still fully active and as per the recent survey, not even one out
of one thousand clients has moved out his/her account from Parasram.

The group currently caters to more than 110,000 High Net-worth Investors,
NRIs, Corporate and retail clients through nationwide web of branch offices
and business associates.

Spread across 450 locations in more than 160 cities of India, the group aims
to become one of the largest broking houses in India.

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The group has ensured that its offices are managed by qualified,
experienced and skilled managerial staff and has full fledged office
infrastructure to serve its clients. The offices are fully equipped with ultra
modern facilities for trading, depository and other services.

From a very humble beginning, the group has achieved consistent growth
year after year and has a current net worth of Rs. 250 crores built on strong
trust of more than 110000 customer base and has also achieved a turnover
in excess of Rs. 1000 crores a day.

Mission:

To create long term value by empowering individual investors through


superior financial services supported by culture based on highest level of
teamwork, efficiency and integrity.

VISION:

‘ To provide best value for money to investors through innovative


products.
‘ Trading/Investments Strategies
‘ State of the art technology and personalized service.

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Customer Promise

They are passionate about their customers' success and promise to deliver
exceptional service with every meeting, interaction and dealing. They strive
to offer simple, straightforward, friendly and trustworthy service. They are a
financial company with a different attitude.

PARASRAM DEALING IN

   


 
 


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Milestones

Awarded with 'Broking House with Largest


May, 2009 Distribution Network' and 'Best Retail Broking House'
at Dun & Bred street Equity Broking Awards 2009
August, 2008 Crossed 500000 trading accounts
November,
µMajor Volume Driver¶ for 2007
2007
March, 2007 Crossed 200000 trading accounts
December,
Created 2500 business associates
2006
October,
µMajor Volume Driver¶ award for 2006
2006
September,
Launched Mutual Fund and IPO business
2006
July, 2006 Launched the PMS function
March, 2006 Crossed 100000 trading accounts
October,
µMajor Volume Driver¶ award for 2005
2005
September,
Launched Online Trading Platform
2004
April, 2004 Initiated Commodities Broking division
April, 2003 First published research report
November,
Parasram¶s first investor seminar
2002
March, 2002 Developed web-enabled back office software
November,
Parasram Capital and Debt Market Ltd. incorporated
1998
December,
Parasram Holdings Ltd. Incorporated
1997

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Parasram Holdings House

Board of Director

Late Shri Subhash Chander ( Founder chairman of the Parasram Group )

Shri Subhash Aggarwal ji was the founder and promoter of Parasram group,
which is a living testimony of his indomitable will, unrelenting commitment,
strong conviction and selfless dedication. He had been the force behind the
stupendous growth, trust and goodwill of Parasram group for 20 long years
since inception. His encyclopedic knowledge and enterprising picks in the
stock market for more than 50 years accredit him as µMaster of Value Stocks¶
by the leaders of the securities markets. His spirit of µThink Big, Think Fast
and Think Ahead¶ will continue to be the guiding light of Parasram Group..

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Mr. Ravinder Kumar Aggarwal ( Managing Director )

Mr. R.K. Aggarwal is the promoter and co-founder of Parasram Group. He


has vast experience (more than 23 years), in-depth knowledge and strong
understanding of various intricacies of Financial Services. His exceptional
leadership skills and commitment to ethical values have made this group one
of the leading and most trusted brokerage houses esp. in North India. Under
his leadership, Parasram has not only made a mark in Stock Broking but also
diversified into Commodities Broking, Depository Services, Clearing Services,
Distribution of Mutual Funds, IPOs, Insurance, PMS, Currency Broking etc.
He brought about the ethos of µClient First¶ in the organization which has
made Parasram group the most respected house in the industry.

Mr. Vivek Sheel Aggarwal (Executive Director)

Mr. Vivek Aggarwal has co-founded and promoted the Parasram Group. He
has rich experience of more than 22 years in the securities market. He has
been instrumental in setting up complete systems and procedures, policies
and programs, technology and automation, risk management and equity
research. His passionate commitment has made Parasram a TQM (Total
Quality Management) organization. He has been a guiding force in providing
quality intermediary services with absolute transparency.

Anshu Aggarwal(Director)

Mr. Anshu Aggarwal has a long experience of almost 20 years in stock


markets. His exceptional dedication, stupendous dynamism and enormous
technological advances have made him a backbone of the Parasram group in
all fields: from IT to marketing, from CRM to back office, from HR to risk
management. His enthusiastic style of working is an inspiration to the
workforce of Parasram.

The Parasram group has an array of professionals from diverse fields


including CAs, MBAs, System Engineers, Equity Analysts shouldering the
responsibilities to take the group to its pinnacles.

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SWOT ANALYSIS:-

Strength:-
‘ Co-ope rati ve and Experi enced Branch Managers
‘ Good Database
‘ Reli ance Brand
‘ Low pri ci ng

Weakness:-
‘ Inexperi enced Staff
‘ Low awareness due to l ack of adverti sement.
‘ Lack of l oyal cli entage
‘ Devel opi ng product.

Opportunity:-
‘ Untapped Market
‘ Increased spendi ng power
‘ Changi ng Mi ndset of Customers
‘ Unpredi ctabl e Sensex

Threat:-
‘ Reach
‘ Sti ff competi ti on from exi sting pl ayers i n the market
‘ Better products

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WHAT DOES PARASRAM HOLDINGS LTD. OFFERS

1.‘ Personalized Service

Company believes in providing personalized service and


individual attention to each client to ensure that we
understand their goals and help them achieve it.

2.‘ Professional Advice

Company offers expert advice on equity and debt portfolios


with an objective to provide consistent long-term return while
taking calculated market risks. Companies approach helps
clients build a proper mix of products, and not concentrate on
just one individual product. Hence, serving long-term
objectives in the best way.

3.‘Long-term Relationship

Company believes that long-term vision is the only means to


steady wealth creation. However to achieve this one also
needs to take advantage of short-term market opportunities
while not losing sight of long-term objectives. Hence it
partners all its clients in realizing their long-term vision.

4.‘Access to Research Reports

Company provides the clients with access to the expert


opinion of economists and analysts.

5.‘Transparency and Confidentiality

Companies clients receive regular portfolio statements from


relationship managers via email.

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DISCUSSION ON TRAINING

Student¶s work profile(role and responsibilities)


I worked there with PARASRAM HOLDINGS LTD. with a profile of sales
trainee. This profile offers me to understand the need of customer and
provide them the best deal possible with maximization of the profit, both for
the company as well as for the customer.
The most important aspect for the role of trainee is trust. So far
fulfillment of the targets one needs to:
‘ Capitalize on the old and loyal clientage which can be building slowly
by advising people in the best possible way.
‘ Generating new leads through various activities.

Generation of leads
Since I was new in the field so I had to start from scratch and
generate new leads to sustain in the market.
Cold calling is one of the trusted ways of getting to the customers without
meeting them. Although the rate of conversion remained very less, for cold
calling the quality and accent remains a very important criterion. this activity
give me mixed result. I often got success and generated many leads through
it but it also landed me in awkward position where the customer were in
different mood and made us hear words for which a marketer should be
always prepared to hear. Corporate calls always remained more difficult to
crack with respect to retail sector.
The corporate were the most difficult and most temping to get the
business from. It took me one one day to crack Hi-tech Gears.
At PARASRAM HOLDINGS LTD. after getting the product knowledge in the
first week at the branch I was also allotted distributor to work with. In the
initial phase I was accompanied by more experienced staff. After I became
known to the market and procedure I started attending calls alone only.
After the third week my performance also improved and I was able to get
close to the targets, though it looked difficult to achieve in the beginning. To
get awareness of the every product I attended diversified calls. This helped
me to implement cross selling to get better results.

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LIMITATIONS:

1. Cold Calling
‡ Voice and accent plays a major role.
‡ The right time to call a customer cannot be decided, as the customer
may in a different mood at the time of calling.
‡ Time consuming
‡ Less success rate
2. Corporate
‡ Time consuming
‡ Contacts with higher authorities play a major role

Description of live experience


I was supposed to use the database provided by the company to make cold
calls or by directly meeting people to get new leads.
While making cold calls, we need to have:
‡ Good Communication Skills (Voice quality is clear and articulate)
‡ Persistent and able to bounce back from rejection
‡ Good organizational skills.
‡ Ability to project a telephone personality (Enthusiasm, friendliness)
‡ Flexibility: can adapt to different types of clients and new situations.

Chart no. 1: staff

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Using a good database is very essential.
³Eighty percent of our business comes from 20 percent of our customers" is
a frequent statement at any sales convention. There's hardly a sales
executive who is not aware of the 80/20 rule´.

While talking to customers, I analyze their needs. Whether they want to go


for investment purpose or insurance or both. Suggest them the plan that
best suits them. If they agree to it then either we send across the agents to
close the deal or close it themselves.

Chart no. 2: hierarchy of services

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Problems faced while selling products:
‡ Customer dissatisfied with the services.
‡ People fear that Parasram Holdings Being a Private company and a
new entrant may be able to sustain or not.
‡ Past experience, word of mouth.
‡ Misguidance by agents.
‡ People do not want insurance products.
‡ Lack of knowledge and less awareness about demat account.
‡ People risk appetite is very low, so they are afraid of mutual fund as
well.

³Success is a journey, not a destination¶¶

PARASRAM DEMAT ACCOUNTS


Overview of Demat Account
Demat account allows you to buy, sell and transact shares without the
endless paperwork and delays. It is also safe, secure and convenient.

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


is a type of banking account which dematerializes paper-based physical
stock shares. The dematerialized account is used to avoid holding physical
shares: the shares are bought and sold through a stock broker.

This account is popular in India. The Securities and Exchange Board of India
(SEBI) mandates a demat account for share trading above 500 shares. As of
April 2006, it became mandatory that any person holding a demat account

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should possess a Permanent Account Number (PAN), and the deadline for
submission of PAN details to the depository lapsed on January 2007.

Is a demat account a must?


Now a day, practically all trades have to be settled in dematerialized form.
Although the market regulator, the Securities and Exchange Board of India
(SEBI), has allowed trades of up to 500 shares to be settled in physical
form, nobody wants physical shares any more. So a demat account is a must
for trading and investing.

Why demat?
The demat account reduces brokerage charges, makes
pledging/hypothecation of shares easier, enables quick ownership of
securities on settlement resulting in increased liquidity, avoids confusion in
the ownership title of securities, and provides easy receipt of public issue
allotments.
It also helps you avoid bad deliveries caused by signature mismatch, postal
delays and loss of certificates in transit. Further, it eliminates risks
associated with forgery, counterfeiting and loss due to fire, theft or
mutilation. Demat account holders can also avoid stamp duty (as against 0.5
per cent payable on physical shares), avoid filling up of transfer deeds, and
obtain quick receipt of such benefits as stock splits and bonuses.

Steps involved in opening a demat account


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 by an
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 rights and duties of investor and
DP. DP should provide the investor with a copy of the agreement and
schedule of charges for their future reference. The DP will open the account
in the system and give an account number, which is also called BO ID
(Beneficiary Owner Identification number).

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The DP may revise the charges by giving 30 days notice in advance. SEBI
has rationalized the cost structure for 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 advised that with
effect from January 09, 2006, no charges shall be levied by a depository on
DP and consequently, by a 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 transferor DP is a joint account, the BO Account


at transferee DP should also be a joint account in the same sequence of
ownership.

Rights

1.‘ You can open more than one depository account in the same name with
single DP/ multiple DPs.
2.‘ No minimum balance is required to be maintained in a depository
account.
3.‘ You can give a onetime standing instruction to your DP to receive all the
credits coming to your depository account automatically.

Procedure

1.Fill account opening form (available with your DP).


2.Give your DP the duly filled account opening form with introduction
documents as may be required.
3.Sign agreement with DP (agreement will state rights & obligations of both
parties). The agreement will contain the fee structure of your DP. Your
DP would give you a copy of this signed agreement for your record.
4.DP would give you Client Id no. (Account no.) Once your depository
account is opened. This Client Id no. along with your DP Id no. Forms a
unique combination. Both these nos. should be quoted in all your future

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correspondence with DP/NSDL / Issuing Company/their registrar &
transfer (R&T) agent.
5.Your DP would give you pre-printed instruction slips for depository
services viz., dematerialization, delivery instruction for trades,
etc..Preserve these carefully.
6.Your DP would give you a list of deadlines for giving instructions for
various depository activities viz., transfer for effecting sale, purchase
etc.. If not, check with the DP.

Required Documents

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


according to your relationship with the institution. If you plan to open a
demat account with a bank, a savings account holder has an edge over the
non-account holder. In fact, banks usually offer additional incentives to
customers who open a demat account with them.
Along with the application form, your photographs (with co-applicants) and
proof of identity/residence/date of birth have to be submitted. The DPs also
ask for a DP-client agreement to be executed on non-judicial stamp paper.
Here is a broad list (you won¶t need all of them though):

‘ PAN card
‘ A canceled check,
‘ Voter¶s ID
‘ Passport
‘ Ration card
‘ Driver¶s license
‘ Photo credit card
‘ Employee ID card
‘ Bank attestation
‘ IT returns
‘ Electricity/ Landline phone bill

While they only ask for photocopies of the documents, they will need the
originals for verification. You will have to submit a passport size photograph
on which you sign across.

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Procedure

1.Fill account opening form (available with your DP).


2.Give your DP the duly filled account opening form with introduction
documents as may be required.
3.Sign agreement with DP (agreement will state rights & obligations of both
parties). The agreement will contain the fee structure of your DP. Your
DP would give you a copy of this signed agreement for your record.
4.DP would give you Client Id no. (Account no.) once your depository
account is opened. This Client Id no. along with your DP Id no. forms a
unique combination. Both these nos. should be quoted in all your future
correspondence with DP/NSDL / Issuing Company/their registrar &
transfer (R&T) agent.
5.Your DP would give you pre-printed instruction slips for depository
services viz., dematerialization, delivery instruction for trades,
etc..Preserve these carefully.
6.Your DP would give you a list of deadlines for giving instructions for
various depository activities viz., transfer for effecting sale,
purchase,etc.. If not, check with the DP.

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Parasram Demat Account Services

Parasram Holdings ± Transacting and investing simplified. Get ready to


change the way you transact and invest in financial products and services.
Whether you wish to transact in equity, equity & commodity derivatives,
IPO¶s offshore investments or prefer to invest in mutual funds, life & general
insurance products or avail money transfer and money changing services,
you can do it all through Parasram. Simply open a Parasram account and
enjoy the convenience of handling all your key financial transactions through
this one window.

Benefits of having an Parasram account.

‡ It¶s cost effective


You pay comparatively lower transaction fees. As an Introductory offer, we
invite you to pay a flat fee of just Rs. 750/- and transact through Parasram.

‡ Its offers single ±


Through Parasram¶s associates, you can transact in equity, equity and
commodities derivatives, offshore investments mutual funds, IPO¶s life
insurance, general insurance, money transfer, money changing and credit
cards, amongst others.

‡ Its convenient
You can access Parasram¶s services through
‡The internet
‡Transaction kiosks
‡The phone (call & transact)
‡Our all ± India network of associates on an assisted trade.

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‡ Its Safe your account is safeguarded with a unique security number that
changes every 32 seconds. This number works as a dynamics password to
keep your account extra safe.

It provide you value- added services at www.Parasrambroking.com,


you get
‡ Reliable research, including views of external experts with an enviable
track record
‡ Live news updates from Reuters and Dow Jones
‡ CEO¶s / expert views on the economy and financial markets
‡ Tools that help you plan your investments, tax, retirement, etc. in the
personal finance section
‡ Risk Analyzer for analysis of your risk profile
‡ Asset allocators to build an appropriate investment portfolio
‡ Innovative use of technology for facilitating

The benefits:-

Benefits of Demat Account

‡ A safe and convenient way to hold securities;


‡ Immediate transfer of securities;
‡ No stamp duty on transfer of securities;
‡ Elimination of risks associated with physical certificates such as bad
delivery, fake securities, delays, thefts etc.;
‡ Reduction in paperwork involved in transfer of securities;
‡ Reduction in transaction cost;
‡ No odd lot problem, even one share can be sold;
‡ Nomination facility;
‡ Change in address recorded with DP gets registered with all companies in
which investor holds securities electronically eliminating the need to
correspond with each of them separately;
‡ Transmission of securities is done by DP eliminating Correspondence with
companies;
‡ Automatic credit into demat account of shares, arising out of
bonus/split/consolidation/merger etc.

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

Benefit For Investors

Demat account has become a necessity for all categories of investors for the
following reasons/ benefits:
SEBI has made it compulsory for trades in almost all scrip¶s to be settled
in 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 of signatures, fake
certificates,
etc.
It is a safe and convenient way to hold securities compared to holding
securities in physical form..
No stamp duty is levied on transfer of securities held in Demat form.
Instantaneous transfer of securities enhances liquidity.
It eliminates delays, thefts, interceptions and subsequent misuse of
certificates.
Change of name, address, registration of power of attorney, deletion of
deceased's name, etc. - can be affected across companies by one single
instruction to the DP.
Each share is a market lot for the purpose of transactions - so no odd lot
problem.
Any number of securities can be transferred/delivered with one delivery
order. Therefore, paperwork and signing of multiple transfer forms is done
away with. It facilitates taking advances against securities on low
margin/low interest.

Points To Remember

1.‘ You may choose your DP based on your evaluation of their reputation,
service standards, charges, other conveniences, etc.
2.‘ Open depository account with the same holding pattern as there on
existing physical securities. You will need to open separate accounts for
every different combination of holding pattern. Eg.: If 100 securities of
company ABC & 200 securities of company PQR are registered in the
name of X as first holder & Y as second holder, one account in name of X
as first holder & Y as second holder is sufficient. Whereas, if 100
securities of company ABC are registered in the name of X as first holder

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& Y as second holder & 200 securities of company PQR are registered in
the name of Y as first holder & X as second holder, you will need to open
two accounts, one in the name of X as first holder & Y as second holder
and the second in the name of Y as first holder and X as second holder.
3.‘ Account opening procedure should typically take 2-5 days.
4.‘ In case of holdings of a partnership firm, the account should be opened
in the name of the partner(s).
5.‘ In case of holdings of a HUF, the account should be opened in the name
of the Karta.
6.‘ In case of a minor, the depository account should be opened in the
name of the minor and the guardian¶s name should be mentioned. The
guardian will sign as signatory on behalf of the minor. For selling the
securities of the minor, a court order should be obtained.
7.‘ In case of any difficulties, contact your DP.
8.‘ Only securities admitted by NSDL can be dematerialized. The list is
available with your DP.
9.‘ Only securities registered in the name of the account holder can be
dematerialized.
10.‘ Dematerialization is normally completed within 15 days after the share
certificates have reached the issuer/their R&T Agent. Thus it may take
you a month from the date you hand over shares, to receive demat
credit.
11.‘ Dematerialization would be done only when the issuer / their R&T
Agent is satisfied of genuineness of securities & ownership status
12.‘ All the joint holders should sign the DRF.
13.‘ The pattern of holding in the DRF should match the pattern of holding
on the share certificate & the pattern in which account is opened.
14.‘ Demat requests with name(s) not matching exactly with the name(s)
appearing on the certificates merely on account of initials not being spelt
out fully or put after or prior to the surname, would be processed,
provided the signature(s) of the client(s) on the DRF tallies with the
specimen signature(s) available with the issuer/ their R & T agent.
15.‘ If the signature in the DRF does not match with the signature available
with the issuer/ their R & T agent, the issuer/ their R & T agent may at
the time of demat confirmation, ask for additional documentation (like
bank attestation/ notarization, etc.) to prove that the certificate belongs
to the person who forwarded the DRF.
16.‘ In case there is any problem in processing the DRF, contact your DP
and if he cannot resolve the problem you may contact NSDL.

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Buying and Selling of Dematerialization

INTRODUCTION

The procedure for buying and selling dematerialized securities is similar to


the procedure for buying and selling physical securities. The difference lies
in the process of delivery (in case of sale) and receipt (in case of purchase)
of securities.

In case of purchase:-

‘ The broker will receive the securities in his account on the payout day
‘ The broker will give instruction to its DP to debit his account and credit
investor¶s account
‘ Investor will give µReceipt Instruction to DP for receiving credit by filling
appropriate form. However one can give standing instruction for credit in
to ones accounts that will obviate the need of giving Receipt Instruction
every time.

In case of sale:-

The investor will give delivery instruction to DP to debit his account and
credit the broker¶s account. Such instruction should reach the DP¶s office at
least 24 hours before the pay-in as otherwise DP will accept the instruction
only at the investor¶s risk.

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Rights

1.‘ Dematerialized securities can be traded on those stock exchanges


connected to NSDL. At present, NSE, BSE, CSE, DSE, LSE, BGSE, OTCEI,
MSE, ISE & ASE are connected to NSDL. At these stock exchanges, two
segments would be available to trade in dematerialized securities :
{‘ Unified (erstwhile physical) segment - In this segment delivery
obligation can be met by delivering dematerialized or physical
securities at the option of the seller. However, for a select list of
securities prescribed by SEBI, securities cannot be delivered in
physical form in the unified segment, of stock exchanges connected
to NSDL. This list presently covers 160 securities. This list has been
expanded to cover a total of 200 securities with effect from January
17, 2000. Over a period, this list would cover all actively traded
securities.
{‘ Exclusive demat segment - In this segment delivery obligation
can be met by delivering dematerialized securities only. Physical
securities cannot be delivered in the exclusive demat segment.

2.‘ Procedure
Trading in dematerialized securities is done through your broker just
like trading in physical securities. After your broker executes the
trade, your DP will help to deliver shares to your broker (in case you
sell) on the basis of valid instruction given by you to your DP and
receive shares from your broker (in case you buy) on basis of valid
instruction given by your broker to his DP.

ÿ[   

Buy dematerialized securities‘

1.‘ You purchase securities in any of the stock exchanges connected to


NSDL through a broker of your choice and make payment to your
broker. Make sure you tell your broker you want only demat shares.
2.‘ Broker arranges payment to clearing corporation/ clearing house of the
stock exchange.
3.‘ Broker receives credit in his clearing account with his DP on the pay-out
day. He can immediately transfer these securities to your depository
account, provided your account is already active.
4.‘ Broker gives instructions to his DP to debit his clearing account and
credit your depository account.
5.‘ You give instruction to your DP for receiving credit in your depository
account. If you have given standing instruction to receive credits, no
separate instruction for receiving credit will be required.
6.‘ If the instructions match, your account with your DP is credited.

Sell dematerialized securities‘

1.‘ You sell your dematerialized securities in any of the stock exchanges
linked to NSDL through a broker of your choice.
2.‘ You give instruction to your DP for debit of your depository account and
credit of your brokers clearing member account at least 24 hours i.e.
one working day prior to the pay-in date or before the deadline
prescribed by your DP, so that your brokers clearing account is credited
at the time arranged with him.
3.‘ On the pay-in day, your broker gives instruction to his DP for delivery to
clearing corporation/clearing house of the relevant stock exchange.
4.‘ The broker receives payment from the clearing corporation / clearing
house.
5.‘ You receive payment from the broker for the sale in the same manner
you would receive payment for a sale in the physical mode.

ÿÿ   

Points To Remember‘

1.‘ Trading continues to be through brokers. In case of any problem in


execution of trade, contact your broker and if he fails to resolve the
problem you may contact the stock exchange.
2.‘ When you buy securities through the stock exchange, your brokers
clearing account is credited to the extent of the securities purchased, on
receipt of instruction from clearing corporation/ clearing house of the
stock exchange. Your depository account is credited only when your
broker gives a delivery instruction to his DP. Securities are not directly
credited to your account by the clearing corporation/ clearing house of
the stock exchange. In case your broker does not give a delivery
instruction, contact him or concerned stock exchange or SEBI. If your
depository account is not credited, in spite of your broker giving valid
instruction to his DP, contact the DP and if he fails to resolve the same
you may contact NSDL.
3.‘ When you sell securities, you have to give a delivery instruction to your
DP to transfer the securities to your brokers clearing account. They are
not automatically debited from your account by NSDL or by the clearing
corporation/ clearing house of the stock exchange. In case the DP
defaults in executing your instruction, the DP is liable to compensate you
for the loss incurred, provided your instruction was in
order and has been submitted to the DP at least 24 hours i.e. one
working day prior to the pay-in date or before the deadline prescribed by
DP. In case the DP fails to resolve your problem, you can contact NSDL.

ÿÚ   

NEED OF THE STUDY

The need of the study arises because of the reason that a trainee must
understand the company, its achievements and tasks, products and services
and also to collect information about its competitors, its products and
services offered. So that, after understanding and collecting information
about the organization and its competitors, a trainee will be able to work
well for the organization.
From the study I have learned very much, about the company as well as the
strategy of the customers, which helps me a lot at my working days.

ÿ~   

ÿ   

ÿA   

COMPETITORS

HDFC BANK is one of the leading Depository Participant (DP) in the country
with over 8 Lac demat accounts.

HDFC Bank Demat services offers you a secure and convenient way to keep
track of your securities and investments, over a period of time, without the
hassle of handling physical documents that get mutilated or lost in transit.

HDFC BANK is Depository participant both with National Securities


Depositories Limited (NSDL) and Central Depository Services Limited
(CDSL).

Features & Benefits

As opposed to the earlier form of dealing in physical certificates with delays


in transaction, holding and trading in Demat form has the following benefits:

Settlement of Securities traded on the exchanges as well as off market


transactions.
Shorter settlements thereby enhancing liquidity.
Pledging of Securities.
Electronic credit in public issue.
Auto Credit of Rights / Bonus / Public Issues /
Dividend credit through ECS.
Auto Credit of Public Issue refunds to the bank account.
No stamp duty on transfer of securities held in demat form.
No concept of Market Lots.

Change of address, Signature, Dividend Mandate, registration of power of


attorney, transmission etc. can be effected across companies held in demat
form by a single instruction to the Depository Participant (DP).
Holding / Transaction details through Internet / email.

ÿX   

In case you need any more information or have any queries , feedback &
complaints , you may please mail us at dphelp@hdfcbank.com

Secured & easy transaction processing

HDFC Bank Ltd provides convenient facility called 'SPEED-e' (Internet based
transaction) whereby account holder can submit delivery instructions
electronically through SPEED-e website (https://speede.nsdl.com). SPEED-e
offers secured means of transaction processing eliminating preparation of
instruction slips and submission of the same across the counter to the
depository participant. The 'IDEAS' facility helps in viewing the current
transactions and balances (holdings) of Demat account on Internet on real
time basis.

Disclaimer:

Whatever have been stated above are in the good interest of the Investor /
Demat Applicants / holders to provide a brief picture about the depository
system. You are requested go through the guidelines of the depositories
before taking any further action. For detailed guidelines, you are requested
to approach your nearest HDFC Bank branch. HDFC Bank will not be
responsible for any misunderstanding / act based on the above. Also HDFC
Bank might ask for additional information / documentation than what has
been stated above to process your application / instruction.

ÿ‰   

ICICI DIRECT

ICICI Direct (or ICICIDirect.com) is stock trading company of ICICI Bank.


Along with stock trading and trading in derivatives in BSE and NSE, it also
provides facility to invest in IPOs, Mutual Funds and Bonds.

Trading is available in BSE and NSE

ICICI Direct offers 3 different online trading platforms to its


customers Type of Account

1. Share Trading Account


Share Trading Account by ICICI Direct is primarily for buying and selling of
stocks in BSE and NSE.
This account allows Cash Trading, Margin Trading,

Margin PLUS Trading, Spot Trading, Buy Today Sell


Tomorrow and Call and Trade on phone.

ICICIDirect.com website is the primary trading platform for this trading


account. They also provide installable application terminal based application
for high volume trader.

2.‘Wise Investment Account

1.‘ Online Mutual funds investment allows investor to invest on-line in


around 19 Mutual Fund companies. ICICI Direct offers various options
while investing in Mutual Funds like Purchase Mutual Fund,
Redemption and switch between different schemes, Systematic
Investment plans, Systematic withdrawal plan and transferring
existing Mutual Funds in to electronic mode. This account also provides
facility to invest in Government of India Bonds and ICICI Bank Tax
Saving Bonds.

Ú   

2.‘ Active Trader account gives more personalized investment options to
the investors. It allows investor to use online and offline stock
trading. It also provides with independent market expertise and
support through a dedicated Relationship Manager from ICICI.

Active Trader also provides commodity trading.

Brokerage and fees

Account opening fees : Rs 750/- (One time nonrefundable)

Brokerage: ICICIDirect.com brokerage varies on volume of trade and


inclusive of demat transaction charges, service taxes and courier charges for
contract notes. It ranges from 0.1% to 0.15% for margin trades, 0.2% to
0.425% for squared off trades and 0.4% to 0.85% on delivery based trades.

Disadvantages of ICICI Direct

1. Getting access to ICICIDirect.com website during


market session can be frustrating.

Úc   

OBJECTIVE

To find the market potential and market penetration of Parasram


Holdings product offerings in Panchkula, Zirkpur, and local area nearby
them.

To collect the real time information about preference level of customers


using Demat account and their inclination towards various other brokerage
firms e.g.
India bulls, Share khan, India in foline, Religare, Alan- kit, Unicon.

To expand the market penetration of Parasram Holdings ltd.

To provide pricing strategy of competitors to fight cut throat


competition.

To increase the product awareness of Parasram Holdings as single


window shop for investment solutions.

Ú[   

Úÿ   

RESEARCH METHODOLOGY

INTRODUCTION
Research Methodology refers to search of knowledge .one can also
define research methodology as a scientific and systematic search for
required information on a specific topic.

The word research methodology comes from the word ³advance learner µs
dictionary meaning of research as a careful investigation or inquiry
especially through research for new facts in my branch of knowledge for
example some author have define research methodology as systematized
effort to gain new knowledge.

TYPES OF RESEARCH

ANALYTICAL RESEARCH:-

It has to used facts or information already available and analyze


these to make a critical evaluation of material.

SAMPLE SIZE:
Considering the constraints it was decided to conduct the study based
on sample size of 100 people in specific age groups.

ÚÚ   

METHODS OF DATA COLLECTION

In the project work Primary data secondary data (both) sources of data has
been used .
1.‘Primary data collection:

In dealing with real life problem it is often found that data at hand are
inadequate, and hence, it becomes necessary to collect data that is
appropriate. There are several ways of collecting the appropriate data which
differ considerably in context of money costs, time and other resources at
the disposal of the researcher.

Primary data can be collected either through experiment or


through survey.

The data collection for this study was done in the following manner:

Through personal interviews:-


A rigid procedure was followed and we were seeking answers to many pre-
conceived questions through personal interviews.

Through questionnaire:-
Information to find out the investment potential and goal was found out
through questionnaires.

Through Tele-Calling:-
Information was also taken through telephone calls.

2.‘Secondary sources of data:


In the secondary sources of data is used. (Internet , mazazine ,books,
journals)

Ú~   

TOOLS OF ANALYSIS

In the project work quantitative technique & percentage method are has
been used.

RESEARCH DESIGN

For the proper analysis of data simple quantitative technique such as


percentage were used. It help in marketing more accurate generalization
From the data available .The data which was collected from a sample of
population was assumed to be representing entire population was interested
.Demographic factor like age, income and educational background was used
for the classification purpose .

Ú   

ÚA   

ÚX   

DATA ANALYSIS AND INTERPRETATION

Q1. In which of these Financial Instruments do you invest into?

Financial Instrument Percentage of respondent


Mutual Fund 75%
Bond 16%
Online trading 7%
Derivative 2%

Result of
Preference of
Investment

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.

ډ   

Q2. Are you aware of online Share trading?

Aware of online share trading Percentage of respondent


Yes 72%
No 28%

Result of awareness of online trading

Interpretation:
With the increase in cyber education, the awareness towards online share
trading has increased by leaps and bounds. This awareness is expected to
increase further with the increase in Internet education.

~   

Q3. Heard about Parasram Holdings?

Awareness of Parasram Holdings Percentage of respondent


Yes 48%
No 52%

Æ 



 

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Interpretation:
This pie-chart shows that reliance money has a reasonable amount of Brand
awareness in terms of a premier Retail stock broking company. This brand
image should be further leveraged by the company to increase its market
share over its competitors.

~c   

Q4. Do you know about the facilities provided by Parasram Holdings?

Awareness of Parasram Holdings Percentage of respondent


Services
Yes 36%
No 64%





 
 

ÿ 


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Interpretation:
Although there is sufficiently high brand equity among the target audience
yet, it is to be noted that the customers are not aware of the facilities
provided by the company meaning thereby, that, the company should
concentrate more towards promotional tools and increase its focus on
product awareness rather than brand awareness.

~[   

Q .5 Which bank is easily available everywhere?

Company Name Percentage of respondent


Parasram 15
ICICI 20
HDFC 15

r




r




r





Interpretation:-
30% have respondent of Parasram Holdings Ltd, 30% have
respondent of HDFC, 40% have respondent of ICICI.

~ÿ   

Q.6 Which banking Demat account offered you a large no. of
services?

Company Name Percentage of respondent


Parasram Holdings 22
HDFC 10
ICICI 18



r

r
 


‘

INTERPRETATION:
44% have respondent of Parasram Holdings Ltd, 20%
have respondent of HDFC, 36% have respondent of ICICI.

~Ú   

Q.7 Which bank provide you a better email facility?

Company Name Percentage of respondent


Parasram Holdings 15
HDFC 13
ICICI 22



r

r
 

INTERPRETATION:

30% have respondent of Parasram Holdings Ltd., 26%


have respondent of HDFC, 44% have respondent of ICICI.

~~   

Q.8 Which company provide a less BROKARAGE rate ?

Company Name Percentage of respondent


Parasram Holdings 22
HDFC 11
ICICI 17



r

r
 


‘

INTERPRTETATION:
44% have respondent of Parasram Holdings
ltd., 22% have respondent of HDFC, 34% have respondent of ICICI.

~   

Q. 9 Which company provide you a large number of product and
services?

Company Name Percentage of respondent


Parasram Holdings 22
HDFC 10
ICICI 18



r

r
 

INTERPRETATION:-
44% have respondent of Parasram Holdings
Ltd., 20% have respondent of HDFC, 36% have respondent of ICICI.

~A   

Represent a pie chart

• Æ•
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ÿ


~X   

OBSERVATION

To study the sal es and di stri buti on management and i mprove the
Customer Acqui si ti on Process by anal yzi ng the consumer
behavi or, respon se and mi ndset towards the product and servi ces
the company offers.
1.‘Preference of Investment:
Consumers want to invest 75% in Mutual funds, 16% in Bonds, 7%
in online trading and 2% in Derivatives.
2.‘Awareness on Online Share Trading
72% consumers are aware of online share trading and 28%
consumers are not aware of online share trading.
3.‘Awareness of Parasram Holdings
48% consumers are know about Parasram Holdings and 52%
consumers are not know about Parasram Holdings.
4.‘Awareness about facilities provided by Parasram Holdings:
36% consumers are aware about the facilities provided by
Parasram Holdings and 64% consumers are not know about the
facilities provided by Parasram Holdings.
5.‘ Availability of Bank
30% have respondent of Parasram Holdings Ltd, 30% have
respondent of HDFC, 40% have respondent of ICICI.
6.‘Which banking Demat account offered you a large no. of
services?
4% have respondent of Parasram Holdings Ltd., 20% have
respondent of HDFC, 36% have respondent of ICICI.
7.‘Better email facility provided by bank
30% have respondent of Parasram Holdings Ltd., 26% have
respondent of HDFC, 44% have respondent of ICICI.
8.‘Provide a less BROKARAGE rate
44% have respondent of Parasram Holdings Ltd., 22% have
respondent of HDFC, 34% have respondent of ICICI.
9.‘Provide a large no. of Products and services
44% have respondent of Parasram Holdings Ltd., 20% have
respondent of HDFC, 36% have respondent of ICICI.

~‰   

LIMITATION

‘ The time constraint was one of the major problems.


‘ The study is limited to the different schemes available under the
Demat account selected.
‘ The lack of information sources for the analysis part.
‘ Geographical locations.
‘ Extreme variability in MARKET.

SUGGESTION

1.‘ The Brand image of Parasram Holdings 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 should offers 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.

   

c   

[   

SUMMARY AND CONCLUSION

SUMMARY OF LEARNINGS EXPERIENCE


‡ To get initial success in this field is very difficult. Although the business
generation becomes easier with time as we serve more people who then get
added up in the loyal clientage. Thus time and service are two most factors
to get in this field.
‡ Also the corporate remains a very important segment which gets
business in bulk but retail cannot be ignored which makes your business
ticking.
‡ Customer remains in the pivotal position.

CONCLUSION
Parasram Demat Account is better than other Demat account. Parasram
Holdings Ltd. have good return of investment. A good brand is always
welcomed over here people are aware of quality so they go for ready to
spend bucks of money.
At last all conclusion be concluded by that Parasram Holdings Ltd. is still
growing industry in India
Parasram Holdings Ltd. account have less brokerage rate .
It provide a security with the use of special type of key .

ÿ   

ANNEXURE

MARKET RESEARCH QUESTIONNAIRE


PLEASE TICK MARK THE APPROPRIATE CHOICES

DEMOGRAPHIC
‘
AME: ««««««««««««««««««««««««««««««««.

Address ««««««««««««««««««««««««««««««««

Phone no:
«««««««««««««««««««««««««««««««..
‘
Types of business:
«««««««««««««««««««««««««««««««..

‘
a.‘ Male
b.‘ Female

‘ 
‘   
a.‘ 0-4,00,000
b.‘ 4,00,001-8,00,000
c.‘ 8,00,001-12,00,000
d.‘ 12,00,001-15,00,000

Ú   

QUESTIONNAIRE

Q1. In which of these Financial Instruments do you invest into?

Shares Mutual Funds Bonds Derivatives

Q2. Are you aware of online Share trading?

Yes No

Q3. Heard about Parasram Holdings?

Yes No

Q4. Do you know about the facilities provided by Parasram Holdings?

Yes No

Q5. With which company do you have your DEMAT account?

Parasram Holdings ICICI Direct HDFC

Others (please specify)

Q6. Which bank is easily available everywhere?


ȑ Parasram Holdings
ȑ HDFC
ȑ ICICI

Q7. Which banking Demat account offered you a large no. of


services?
ȑ Parasram Holdings
ȑ HDFC
ȑ ICICI

~   

Q8. Which bank provides you a better email facility?

ȑ Parasram Holdings
ȑ HDFC
ȑ ICICI

Q9. Which companies provide a less BROKARAGE rate?


ȑ Parasram Holdings
ȑ HDFC
ȑ ICICI

Q10. Which company provide you a large number of product and


services?
ȑ Parasram Holdings
ȑ HDFC
ȑ ICICI

   

BIBLIOGRAPHY

Websites:

http://www.parasramindia.com
www.hdfc.com
www.icicidirect.com
www.demataccount.com
www.google.com

Reference books:

1. FINANCIAL INSTITUTIONS AND MARKETS


2.INVESTMENT MANAGEMENT

A