PROCEDURE A DEMAT ACCOUNT OPENING
( BY UNICON SECURITIES PVT. LTD1”)
Summer Internship project report Submitted toward partial Fulfillment Of POST GRADUATE DIPLOMA IN MANAGEMENT / POST GRADUATE DIPLOMA IN MANAGEMENT-MM/ POST GRADUATE DIPLOMA IN MANAGEMENT-IT
(APPORVED BY AICTE,GOVT.OF INDIA) Academic session 2011-2013
Submitted by: Sunil Kumar Roll.no –BM-011224 Under the Guidance of : Industry guide Mr Sachin Gupta Branch manager(equity share) faculty guide Dr.Tapan Kumar Nayak Chair Person of pgdm
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ACKNOWLEDGEMENT
It was a great opportunity for me to work with UNICON SECURITIES PVT. 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. Sachin Gupta, branch Manager of unicon . who has been a constant source of inspiration for me during the completion of this project. He gave main valuable inputs during my end eavor to complete this project
.I am also extremely grateful to faculty guide Mr. Tapan Kumar Nayak ,and Mr Niraj Shanghi Sir who always help me made my project report. to have given me this opportunity to work with him and gain valuable insights. during the entire tenure of this project. Not to forget, all those who have kept my spirits surging and helped delivering my best.
Sunil Kumar Roll .No BM-011224 Pgdm (2011-2013)
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DECLARATION
I Sunil Kumar student of Post Graduate Diploma in Management (PGDM) 1st yaer have personally worked on the report titled ?PROCEDURE A DEMAT ACCOUNT OPENING? under the guidance of .Mr Sachin Gupta The data mentioned in this report were obtained during the field work done and collected by all of the group members. Data obtained from Internet and books have been duly acknowledged. We, hereby affirm that the work has been done by us in all its aspects and results reported in this study are genuine and true to best of our knowledge.
Sunil Kumar Roll .No BM-011224 Pgdm (2011-2013)
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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 Financial & 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 “Procedure a Demat Account opening”
Sunil Kumar Roll .No BM-011224 Pgdm (2011-2013)
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NEED OF THE STUDY
The need of the study arises because of the reason that a trainee must understand the company,Afrist step is enter in the stock market is demet account . 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 towork well for the organization. From the study I have learned very much, about the company‘s well as the strategy of the customers, which helps me a lot at my working days
Sunil Kumar Roll .No BM-011224 Pgdm (2011-2013)
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OBJECTIVE
To find the market potential and market penetration of unicon securities pvt ltd product offerings in noida and Delhi . ? To collect the real time information about preference level of customers using ofening Demat account and their inclination towards various other brokerage firms e.g.India bulls, Share khan, ICICI direct, Religare money, ? To expand the market penetration of unicon securities pvt ltd. ? To provide pricing strategy of competitors to fight cutthroat competition. ? To increase the product awareness of unicon securities pvt ltd for investment solutions. ? To awareness of the demat account to costumer.
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TABLE OF CONTENT
S.no 2
Contents Acknowledgement Declaration
page no. 2 3 4 5 6 7 9 10 12 13 14 15 16 17 18 21 22 23
3 4
Certificate Preface Objective Need of the study
Chapter1
Company profile 1.1 Unicon background 1.2 BRANCHES ALL OVER INDIA 1.3 Financial performance of unicon 1.4 Unicone product & service 1.5 Benefit of investing with unicon 1.6 Unicon plus &(features) 1.7 IPO- on line
Chapter 2 Chapter 3
Trading in equity share Unicon special charge of opening demat account 3.1 Depository charges 3.2 Brokerage charge
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3.3 Advance brokerage and ppo plan 3.4 Document required opening demat account Chepter4 Competitors 4.1 Review of the icici 4.2 Review of the reliance money 4.3 Reviews of the indiabulls 4.4 Review of the sherkhan 4.5 Comparison Table of Brokerage Charges in Chepter5 5.1 5.2 Chapter 6 Demat definition Demat benefits Disadvantages of Demat Research methodology 6.1 Methods of data collection( primary Chapter 7 Research design 7.1 Data analysis and interpretation 7.2 Chapter 10. Observation Limitation Suggestions Summary Conclusions Bibliography ANNEEXURE
24 26 28 29 33 36 38 41 42 43 46 50 51 52 53 61 63 64 65 66 67 68
Procedure of made this project report
71
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CHEPTER 1
1.INTRODUCTION TO UNICON UNICON is a financial services company which has emerged as a one-stop investment solutions provider. It was founded in 2004 by two visionary and hard working entrepreneurs, Mr. Gajendra Nagpal and Mr. Ram M. Gupta, who possess expertise in the field of Finance. The company is headquartered in New Delhi, and has its Corporate office in Mumbai with regional offices in Kolkata, Chennai, Hyderabad and Noida UNICON is a professionally managed company led by a team with outstanding managerial acumen and cumulative experience of more than 400 man years in the financial markets The Company is supported by more than 2400 Uniconians and has an extensive network of over 323 business offices in 152 cities across India. With a customer base of over 200,000 the Unicon Group has an eye for the intricate financial needs of its clients and caters to both their short – term and long – term financial needs through a comprehensive bouquet of investment services. It has been founded with the aim of providing world class investing experience to the investing community. These services range from offline & online trading in equity, commodities and currency derivatives to debt markets to corporate finance and portfolio management services. The company has a sizable presence in the distribution of 3rd party financial products like mutual funds, insurance products and property broking. It also provides expert Advisory on Life Insurance, General Insurance, Mutual Funds and IPO‘s. The distribution network is backed by in-house back office support to provide prompt and efficient customer service The Equity broking arm – UNICON Securities Pvt. Ltd offers personalized premium services on the NSE, BSE & Derivatives market. The Commodity broking arm Unicon Commodities Pvt. Ltd offers services in Commodity trading on NCDEX and MCX. The UNICON group also has a PCG division providing investments solutions for High Net Worth Individuals. The Corporate Advisory Services arm – Unicon Capital Services (P) Ltd offers entire gamut of Investment Banking services to corporates. UNICON can boast of some of the most respected names in the private equity space like Sequoia Capitals, Nexus India Capital and Subhkam Ventures as its shareholders
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Unicon background
Unicon is one of the leading retail brokerage firms in the country. It is the retail broking arm of the Delhi, which has over eight decades of experience in the stock broking business. Unicon offers its customers a wide range of equity related services including trade execution on BSE, NSE, Derivatives, depository services, online trading, investment advice etc. With more than 150 share shops in 80 cities, and India‘s premier portal, www.uniconindia.in, we reach out to customers like no one else. Unicon offers you trade execution facilities on the BSE and the NSE, for cash as well as derivatives, depository services and most importantly, investment advice tempered by 5 years of research and broking experience. ]The firm‘s online trading and investment site—www.uniconindia.in —was launched in 2004. The site gives access to superior content and transaction facility to retail customers across the country. Known for its jargon-free, investor friendly language and high quality research, the site has a registered base of over one-lakh customers. In Delhi (N.C.R) Region approx- 1000 online share trading accounts per Month are opened. The content-rich and research oriented portal has stood out among its contemporaries because of its steadfast dedication to offering customers best-of-breed technology and superior market information. The objective has been to let customers make informed decisions and to simplify the process of investing in stocks. Unicon has launched Speed Trade in 2004, a net-based executable application that emulates the broker terminals along with host of other information relevant to the Day Traders. This was for the first time that a net-based trading station of this caliber was offered to the traders. In the last six months Speed Trade has become a de facto standard for the Day Trading community over the net. Unicon ground network includes over 300 centers in 140 cities in India, of which 63 are fully owned branches.
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Unicon has always believed in investing in technology to build its business. The company has used some of the best-known names in the IT industry, like Sun Microsystems, Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette, Verisign Financial Technologies India Ltd, Spider Software Pvt Ltd. to build its trading engine and content. With a legacy of more than 5 years in the stock markets, the Unicon group ventured into institutional broking and corporate finance 5 years ago. Presently Unicon is one of the leading players in institutional broking and corporate finance activities. Unicon holds a sizeable portion of the market in each of these segments. SSKI‘s institutional broking arm accounts for 7% of the market for Foreign Institutional portfolio investment and 5% of all Domestic Institutional portfolio investment in the country. It has 60 institutional clients spread over India, Far East, UK and US. Foreign Institutional Investors generate about 65% of the organization‘s revenue, with a daily turnover of over US$ 2 million. The Corporate Finance section has a list of very prestigious clients and has many ?firsts‘ to its credit, in terms of the size of deal, sector tapped etc. The group has placed over US$ 1 billion in private equity deals. Some of the clients include BPL Cellular Holding, Gujarat Pipavav, Essar, Hutchison, Planet Asia, and Shopper‘s Stop. Unicon is ? ? ? Among the top 3 branded retail service providers No. 2 player in online business Largest network of branded broking outlets in the country servicing 100,000 clients
Unicon is the retail broking arm organization with more than eight decades of trust & credibility in the stock market. Unicon is amongst pioneers of investment research in the Indian market. In 1984 it was ventured into Institutional Broking & Corporate Finance. Unicon is a leading domestic player in Indian institutional business, which is having over US$ 5 billion of private equity deals
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1.2 BRANCHES ALL OVER INDIA
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1.3 Financial Performance of Unicon
Unicon is India's leading retail financial services company. They have over 588 share shops across 213 cities in India. While their size and strong balance sheet allow them to provide customers with varied products and services at very attractive prices, their over 750 Client Relationship Managers are dedicated to servingcustomers uniqueneeds. Unicon is lead by a highly regarded management team that has invested crores of rupees into a world class Infrastructure that provides clients with real-time service & 24/7 access to all information and products. Their flagship Unicon Professional Network offers real-time prices, detailed data and news, intelligent analytics, and electronic trading capabilities, right at your fingertips. This powerful technology complemented by their knowledgeable and customer focused Relationship Managers is creating a world of Smart Investor.
Unicon offers a full range of financial services and products ranging from Equities to Derivatives enhance your wealth and hence, achieve your financial goals.
Unicon Client Relationship Managers are available to the customers to help with their financial planning and investment needs. To provide the highest possible quality of service, Share khan provides full access to all our products and services through multi-channels.
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1.4 UNICON PRODECT & SERVICES
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1.5 BENEFITS OF INVESTING WITH UNICON ACCESSIBILITY Unicon provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for investors. These services are accessible through our centers across the country (Over 250 locations in 123 cities), over the internet (through the website www.sharekhan.com) as well as over the Voice Tool. CONVENIENCE You can call our Dial-n-Trade number (1-600-22-7050) to get investment advice and execute your transactions. We have a dedicated call-center to provide this service via a toll-free number from anywhere in India.
ADVANTAGES ? Secure Order by Voice Tool Dial-n-Trade. ? Automated Portfolio to keep track of the value of your actual purchases. ? 24x7 Voice Tool access to your trading account. ? Personalized Price and Account Alerts delivered instantly to your Cell Phone & E-mail address. ? Special Personal Inbox for order and trade confirmations. ? On-line Customer Service via Web Chat. ? Anytime Ordering.
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1.6 :UNICON PLUS This account allows the client to trade through our website and is suitable for the retail investor who is risk-averse and hence prefers to invest in stocks or who do not trade too frequently. FEATURES:? Online trading account for investing in Equity and Derivatives ? Both NSE & BSE online and Trading through website Live terminal ? Both Cash & F&O ? No brokerage commitment required ? Integration of On-line trading, Saving Bank and Demat Account. ? Instant cash transfer facility against purchase & sale of shares. ? Competitive transaction charges. ? Instant order and trade confirmation by E-mail. ? Streaming Quotes.(Cash & Derivatives) ? Personalized market watch. ? Single screen interface for Cash and derivatives and more. ? Provision to enter price trigger and view the same online in market watch.
UNICON SWIFT UNICON SWIFT is an internet-based software application that enables anyone to buy and sell in an instant. It is ideal for active traders and jobbers who transact frequently during day‘s session to capitalize on intra-day price movement.
FEATURES:? Instant order Execution and Confirmation. ? Single screen trading terminal.(NSE AND BSE BOTH)
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? Real-time streaming quotes, tic-by-tic charts. ? Market summary (Cost traded scrip, highest value etc.) ? Hot keys similar to brokers‘ terminal. ? Alerts and reminders. ? Back-up facility to place trades on Direct Phone lines. DIAL-N-TRADE Along with enabling access for their trade online, the UNICON PLUS and UNICON SWIFT ACCOUNT also gives their customers Dial-n trade services. With this service, all the customers need to do is dial to their dedicated phone lines 1-800-22-7050.
1.7: IPO On-line The customers can apply all the forthcoming IPO online hassle-free.
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CHEPTER 2
TRADING The Exchange, which had an open outcry trading system, had switchedover to a fully automation computerized mode of trading known as BOLT( BSE on line Trading) System. Through the BO System the members now e n t e r o r d e r s f r o m T r a d e r w o r k S t a t i o n s ( T W S s ) i n s t a l l e d i n t h e i r o f f i c e instead of assembling in the trading ring.Earlier, the member of the exchange were permitted to open trading terminals only in Mumbai. However, in October 1996, the Exchange obtained permission from SEBI for expansion of its BOLT network to locations outsideMumbai. In terms of the permission granted by SEBI and certain modificationannounced later, the members of the Exchange are now free to install their trading terminals at any place in the country.I n o r d e r t o e x p a n d t h e r e a c h o f B O L T n e t w o r k t o c e n t e r s o u t s i d e Mumbai and support the smaller regional, Stock Exchanges, the Exchange hasas on August, 31, 2002 admitted subsidiary companies formed by 13 Regional
Stock Exchanges as its members. The members of these Regional S t o c k Exchanges work as sub-brokers of the member-brokers of the Exchanges.The objective of the granting membership to the subsidiary companiesformed by the Regional Stock Exchanges were to reach out to investors inthese centers via the members of these Regional Exchanges and provide theinvestors in these areas access to the trading facilities in all scrips listed on theExchanges.T r a d i n g o n t h e B O L T S y s t e m i s c o n d u c t e d f r o m M o n d a y t o F r i d a y between 9:55 a.m. and 3.30 p.m. the scrips traded on the exchange under ?A‘?B2‘ ?F‘ and ?Z‘ groups. The number of scrips listed on the Exchange under ?A‘ B!‘, ?B2‘ and ?Z‘ groups, which represents the debt market (fixed income securities) segment wherein 748 securities were listed as on August 31, 2002.The ?A‘ group was introduced by the Exchange in July 1999 and covers thec o m p l a i n t s w h i c h h a v e f a i l e d t o c o m p l y w i t h l i s t i n g r e q u i r e m e n t s and/or f a i l e d t o r e s o l v e i n v e s t o r c o m p l a i n t s o r h a v e n o t m a d e t h e r e q u i r e d arrangements with both the Depositiories Viz, Central dematerialization of their securities by the specified date, i.e., September 30,2001. Companies in?Z? groups for not complying with the provisions of the listing Agreement a n d / o r p e n d i n g i n v e s t o r c o m p l a i n t s a n d t h e b a l a n c e c o m p a n i e s w e r e o n account of not making arrangements for dematerialization of their securities with both the depositories. 1516 companies have been put in ?Z? group as atemporary measure till they make arrangements for dematerialization of
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their securities. Once they finalize the arrangements for dematerialization of their s e c u r i t i e s t r a d i n g a n d s e t t l e m e n t i n t h e i r s c r i p s w o u l d b e s h i f t e d t o t h e i r respective erstwhile groups.
The Exchange has also the facility to trade ?C? group which covers theodd lot securities in ?A‘ ?B1‘ ‘B2‘, and ?Z? groups and Rights renunciationsin all the groups of scrips in the equity segment. The Exchange thus, providesa facility of market participants of on-line trading in odd, lots of securities andRights renunciations. The facility of trading in odd lots of securities not onlyoffers an exit route to investors to dispose of their odd lots of securities but also provides them an opportunity to consolidate their securities into marketlots.T h e ? C ? g r o u p c a n a l s o b e u s e d b y i n v e s t o r s f o r s e l l i n g u p t o 5 0 0 shares in physical form in respect of scrips of companies where trades are to be compulsory settled by all investors in demat mode. This scheme of selling physical shares in compulsory demat scrips is called as Exit Route Scheme.With effect from December, 3,2001, trading in all securities listed in e q u i t y s e g m e n t o f t h e E x c h a n g e t a k e s p l a c e i n o n e m a r k e t s e g m e n t , v i z , compulsory rolling Settlement Segment.
Benefits of Investing in the Stock Market Many shareholders find that trading on the stock market can be quite profitable provided that they have enough information about how likely a business is likely to increase its profits in the near future. Higher profits translate into shares that are worth higher amounts. If a share goes up a substantial amount in value, a shareholder can sell it and reap the difference between the increase and the price initially invested in the share. These types of profits are called dividends, and they can be in the form of cash payments or additional shares according to different company policies. Buying and selling shares on the stock market can bring potentially large amounts of profit for savvy traders. Some people have even built noticeable wealth from these particular investments. Owning shares also gives a trader the benefit of having a vested interest in a chosen business‘s operations and ventures.
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Basics of Stock Market Brokerage Accounts Before buying any shares, a new investor will need to open a brokerage account in order to move invested money into the stock market. This type of account is usually structured in two possible ways: as a cash account or a securities account. Cash accounts require investors to pay the initial prices of their chosen shares up front in full. Securities accounts allow them to make a partial payment for their shares and then pay the rest of the balance out of the dividends they earn once the shares increase in value. Different Types of Brokerage Accounts for Stock Market Trading In addition to the two basic structures of cash accounts and securities accounts, investors have a range of options for enlisting the help of a knowledgeable stock broker. A full service broker takes larger commission payments from any dividends but also offers the most comprehensive guidance for newcomers to stock market trading. Many investors feel that a full service broker is worth the investment because these kinds of brokers are able to give detailed advice about which shares to buy and sell within a specific time frame. Discount brokers do not offer the in-depth advice of full service brokers, but they usually charge substantially lower commissions from earned dividends. Some financial advisers can be additional sources of advice for getting started with stock market trading. New investors typically consult a financial adviser who has prior experience as a broker for the best possible outcomes. Investment bankers can be other sources of tips and guidance for selecting the optimal stock market trading options for each individual‘s initial budget and goals. Online Stock Market Trading Options Companies such as etrade and Scottrade have become familiar to many people as possible options for getting started with trading on the stock market. The process involves making a small payment per transaction, and the company offers thousands of different choices for the businesses whose shares investors can purchase. Etrade is also known for its comprehensive education resources to help new investors learn strategies to increase their chances of earning dividends from their stock market shares. Scottrade operates with a similar range of choices for opening up a stock market brokerage account that can be tailored to different investors‘ preferences and initial purchasing budgets. Opening a Stock Market Brokerage Account The typical online account requires a basic application that includes an investor‘s contact information, employer information, and either social security number or tax payer identification number. Many online stock market trading accounts also require an initial monetary deposit or minimum number of share purchases. The average opening fee is relatively low, usually between $7 and $10 for most accounts.
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CHAPTER 3
? A special charges opening demat account in stock market through unicon securities
Charge
UNICON PLUS
UNICON SWIFT
Special rate of Account Opening Rs. 400/Rs. 500/- (LIFE TIME)
Monthly Commitment Charge
Rs. NIL
Rs. NIL
Rate of Brokerages
Intraday-0.03% Delivery-0.30%
Intraday-0.03% Delivery-0.30%
*Refundable in case the brokerage is more than Rs.500/= p.m. Or quarterly For UNICON SWIFT the Monthly Recurring Fee of Rs.NIL per month is very nominal considering the benefits of the product. This access charges will be debited to all the new
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customers signed up after Sep15 2004. And at the end of the month if the client has contributed more than Rs.500 as brokerage the access charge of Rs.500 will be credited back to the clients account. Please note - this credit of Rs.500 will be refunded only to customers who have contributed more than Rs.500 as brokerage during the month.
3.1 DEPOSITORY CHARGES: Account Opening Charges Annual Maintenance Charges
Rs. 400 Rs. NIL first year Rs. 200 Per annum from second year onward
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3.2 BROKERAGE CHARGED 0.03% Plus Taxes for Each leg of Intra-day trade 0.30% Plus Taxes for trades resulting in delivery
FUNDING FACILITY:Three basic types of funding: . T + 3 : - Intraday: - unicon provides 10 times funding Source: Financial report of unicon securities ltd.Shareholding Pattern
TIE UPS: Tie up with four banks i.e. HDFC Bank Ltd, AXIS Bank, UTI bank , ICICI Bank for online money transfer.
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3.3 Off line trading in stock market Unicon advantage brokerage plans Subscri ption Fee(in inr) excludi ng Service tax Subscrip tion Fee cheque amount( in INR) Validi ty perio d in mont hs Broke rageDeliv ery in INR) Broker ageInterad ay &futur e(in INR) Broker age Option s(in INR) Aoc charg es (in INR) Advant age Tradin g softwar e charge s((in INR) Broker age Deliver y post Subscri ption Period Broker age interad ay& Future s post Subscri ption period( in INR) 4p Brokera ge Options post Subscri ption prieod
3000
3309
12
30p
3.5p
Rs.70p er or1%o f premiu m whiche ver is higher Rs.70p er or1%o f premiu m whiche ver is higher Rs.65p er or1%o f premiu m whiche ver is higher Rs.40p er or1%o f premiu
200
500
40p
Rs.70pe r or1%of premiu m whichev er is higher
6000
6618
12
25p
3p
free
free
35p
3.5
Rs.70pe r or1%of premiu m whichev er is higher
12000
13236
12
20p
2.5p
free
free
25
3p
Rs.70pe r or1%of premiu m whichev er is higher
24000
26472
12
18p
2p
free
free
25
3p
Rs.70pe r or1%of premiu m
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m whiche ver is higher 48000 52944 12 15p 1.5p Rs.30p er or1%o f premiu m whiche ver is higher Rs.25p er or1%o f premiu m whiche ver is higher free free 25 2.5
whichev er is higher
Rs.70pe r or1%of premiu m whichev er is higher
96000
105888
12
10p
1p
free
free
25
2.5
Rs.70pe r or1%of premiu m whichev er is higher
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PPO PLAN (PAY PER ORDER) PPO is a pay per order which is pay only when investor purchase/sell it is benefit off the investor on pay per order whether those order is one lakh to one crore only pay according which plan customer prefer .there are some term as u have to Sign which u give advance brokerage made by unicon company,
One order only 5 Rs weather that order is one corre or ten corre doesn‘t matter what was brokerage company give other costumer . Please tick &sing the plan of your choice PPO plan 15k PPO plan 25k PPO plan 50k PPO plan 1 Lac Subscriptio n fee(inINR) exculiding service tax Subscription Per order Validity Account Fee cheque charge in opening amount intraday,delivery charging fee(inINR) and In INR F&O(in INR) Advanced trading software charge
15000
16854
25
1 year
Free
Free
25000
28090
15
3year
Free
Free
56180 50000
15
3 year
Free
Free
100000
112360
5
10 years
Free
Free
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3.4
DOCUMENTS REQUIRED ? As per KYC guide lines there needs to be Photo Identity and Address proof of the customer. The required documents are mentioned below:-
Identity Proof
? ? ? ? ?
Residence/Address Proof
? ? ? ? ? ? ? ? ? ?
Passport Pan Card Driving License Voter's ID MAPIN UIN Card
Passport(valid) Voter's ID Driving License(valid) Bank Statement(latest) Telephone Bill(latest) Electricity Bill(latest) Ration Card Flat Maintenance Bill(latest) Insurance Policy(latest) Leave-License/Purchase Agreement(latest)
? 2 Photographs ? 1 Cheque of Rs.500 In Favor of Unicon Securities Pvt. Ltd. ( For UNICON PLUS), Or ? 1 Cheque of Rs.2500/=In Favor of Unicon Securities Pvt. Ltd. (For UNICON SWIFT Account).
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CHAPTER 4
COMPETITORS
There are many comptetitor in stock market . but brifily four major competitor of the unicon. 1. 2. 3. 4. Icici direct . Relince money Indiabulls sherekhan
4.1 Reviews
ICICI SECURITIES
ICICI Direct website (ICICIDirect.com) is an investment portal of ICICI Securities (I-Sec); an integrated securities firm part of famous Mumbai, India based ICICI Group. ICICI Group is India's 2nd largest financial institution and ICICI Bank is No.1 private bank for many years. ICICI Securities is the biggest equity house in India proving online and offline services including investment banking, institutional broking, retail broking, private wealth management, and financial product distribution. ICICIDirect.com is the flagship website of ICICI Securities providing secure and integrated 3-in-1 share trading account. The featured services provided by ICICI Direct includes equity trading in BSE and NSE, Margin Trading, Trading in Derivatives, Mutual Fund investment, Investment in Public Offers (IPO's) through ASBA, General & Life Insurances, Fixed Deposits, Pension Schemes etc. The service which made ICICIDirect top broker for retail investors is the unique 3-in-1 online trading account. This account includes a bank account, a share broker account and a demat account. All transitions between these 3 accounts are seamless and absolutely no manual or paper work involved. For example, when an investors buys a share, a trade is made though though share broker account, money get automatically deducted from the bank account and the shares are transferred to the demat account. Similarly when an investor sells a share through ICICIDirect.com, trade is made by brokerage account, shares are withdrawn from Demat account and money is credited to the bank account which is immediately available for any other transaction including buying groceries or cash withdrawal from ATM.
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Though ICICI charges much higher fees and brokerage, for retail investor who does only few trades a month, a hassle free service is worth paying extra money for it. ICICIDirect Trades In: BSE and NSE ICICIDirect's Trading Platforms ICICIDirect offers 2 trading platforms to its customers: 1. Share Trading Account (Website Based Trading) Website based online Share Trading Account by ICICIDirect is primarily for buying and selling of stocks at BSE and NSE. The ICICIDirect website allows Cash Trading, Margin Trading, MarginPLUS Trading, Spot Trading, Buy Today Sell Tomorrow, IPO Investment, Mutual Fund Investment etc. ICICIDirect.com website is the primary Investment vehicle of ICICI Limited. 2. Trade Racer (Trading Terminal) Trade Racer is a power packed Trading platform which provides an investor with Live streaming quotes & Research Calls, integrated fund transfer system along with multiple watch list facility. Investor can also do technical analysis with the help advance charting tools. Single Order entry page for Equities and Derivatives, Technical Analysis, Integrated Fund Transfer System, Customized Interface, Intraday and EOD Charts and Shortcut keys for faster access to markets are some of the key features of Trade Racer Terminal. ICICIDirect's Trading Brokerage, AMC and Fees
? ? ? ? ? ?
Trading Account Opening Charges (One Time): Rs. 975 Trading Annual maintenance charges (AMC): Rs 0 latest brokerage information on ICICIDirect website. Demat Account Opening Charges (One Time): Rs. 100 (for Agreement Stamp Paper) Demat Account Annual Maintenance Charges (AMC): Rs. 500 (Rs 0/- for 1st year with 3 in 1 Account) Other Demat Service Charges & Fees
ICICI offers 2 types of brokerage plans to its customer: 1. I-Secure Plan (Flat brokerage Plan) This plan offers Flat Brokerage (in %) irrespective of turnover value. This plan is suitable for traders / investors looking at secured and fixed brokerage. 2. I-Saver Plan (Variable brokerage plan)
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This plan offers brokerage based on the trading volume i.e. high brokerage for low volume and low brokerage for high volume trades. This plan suitable for traders / investors who trade in high volumes and can benefit from low brokerage. ICICIDirect Brokerage in Cash I - Saver Plan Effect ive Brok Brok erage erage on (%) Intra day Squa reoff I - Secure Plan Total Effect Eligib ive le Brok Turno Brok erage ver erage on (Per (%) Intra calen day dar Squa Quart reoff er)
Total Eligible Turnover (Per calendar Quarter)
Above Rs. 5 Crores
0.25
Irresp ective 0.125 of 0.55 % turnov er 0.150 % 0.175 % 0.225 % 0.275 % 0.350 %
0.275 %
Rs.2 Crores to 5 Crores
0.30
Rs.1 Crores to 2 Crores
0.35
Rs.50 Lakhs to 1 Crores
0.45
Rs.25 Lakhs to 50 Lakhs
0.55
Rs.10 Lakhs to 25 Lakhs
0.70
0.75 I - Saver Plan / I - Secure Plan
0.375 %
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For Equity/Currency Futures Total Eligible Turnover per month Above Rs. 20 Crores
Equity Future and Future Currency Futures Plus Brokerage on Second leg Brokerage on Second leg of Intraday square off (per of Intraday square off (per lot) lot) Rs.15/Rs.10/-
Brokerage (%)
0.030
Rs.10 Crores to 20 0.035 Crores Rs.5 Crores to 10 Crores Less than Rs.5 Crores 0.040
Rs.15/-
Rs.10/-
Rs.15/-
Rs.10/-
0.050
Rs.15/-
Rs.10/-
Less than Rs.10 Lakhs
ICICIDirect Brokerage in Future & Future Plus ICICI Brokerage in Margin & Margin Plus I - Saver Plan / I - Secure Plan Total Eligible Turnover per month Brokerage (%) Above Rs. 20 Crores Rs.10 Crores to 20 Crores Rs.5 Crores to 10 Crores Less than Rs.5 Crores ICICI Direct Brokerage in Options I - Saver Plan / I - Secure Plan Brokerage in Options Total Eligible Lots per month Flat brokerage per contract lot (Rs.) Brokerage on Second leg of Intraday square off (per lot) 0.030 0.035 0.040 0.050
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Above 600 301-600 151-300 61-150 0-60
65/70/75/85/95/-
Rs.15/Rs.15/Rs.15/Rs.15/Rs.15/-
How to open account with ICICI Securities Pvt Ltd.? For Online Stock Trading with ICICI, investor needs to open 3 accounts...ICICI Bank Account, ICICI Direct Trading Account and ICICI Demat Account (DP Account). Note: If you already have a bank account or demat account with ICICI, you could link it with new ICICIDirect trading account. Opening trading account with ICICI is easy. You could use one of the following options to open account with ICICIDirect.
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Visit ICICIDirect.com and fill the "Open an Account" form. Call ICICI and tell them that you are interested in opening an account with them.
In both the cases ICICI representative contact you in a day or two and tell you about the procedure to open the account. They usually send somebody to your home to collect documents, signature and for demo if required.
ICICIDirect Advantages 1. 3-in-1 account integrates your banking, broking and demat accounts. All accounts are from ICICI and very well integrated. This feature makes ICICI the most interesting player in online trading facility. There is absolutely no manual interfere require. This is truly online trading environment. 2. Unlike most of the online trading companies in India which require transferring money to the broker's pool or towards deposits, at ICICIDirect you can manage your own demat and bank accounts through ICICIdirect.com. Money from selling stock is available in ICICI bank account as soon as the ICICIDirect receive it. 3. Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes all from one website. General Insurance is also available from ICICI Lombard. 4. Trading is available in both BSE and NSE. 5. Low bandwidth website is available for slow internet connection or for trading from mobile devices. 6. Through myGTC feature, you can place buy and sell limit orders in equity scrips of your choice specifying the period for which you want the order instruction to be valid.
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ICICIDirect Disadvantages 1. ICICIDirect brokerage is high and not negotiable. 2. With ICICIdirect.com e-Invest account(3-IN-1 concept), the Demat Account has to be opened with ICICI Bank Ltd as the Depository Participant (DP) and the Bank Account has to be opened with ICICI Bank Ltd. as the Banker.
Distinguishing Features of ICICIDirect: 1. 3-1 account offers great flexibility and worry free transaction between Bank Account, Demat Account and Share Broker Account. Also the website (ICICIDirect.com) has wide ranges of investment products available. This makes investing easy. 2. "myGTC Orders" is a unique and a very useful feature offered by ICICIDirect. Using this facility, when placing a buy/sell order, a share trader can specify the date until when the order will be valid. GTC is short form of 'Good Till Cancel'. For example – You can place an order to buy Reliance Industries shares at Rs 700 (say current market price is Rs 750) and keep the myGTC date, say, one month from now. In this case you order will be valid for next one month at Rs 700. If the share reaches at this price in next one month, the order will automatically execute. It's a hassle free service which helps a lot to many of the investors who has a price in mind and do not want to miss the opportunity to buy/sell share when it reaches to that price. ? 4.2 RELINCE MONEY REVIEWS
Reliance Money, A Reliance Capital Limited Company, is the financial services division of Reliance Anil Dhirubhai Ambani (ADA) Group. Reliance ADA group is among top 3 business houses in India with wide range of presence across various sectors. Group's major interests ranges from communications (Reliance Communications) and financial services (Reliance Capital Ltd), to generation, transmission and distribution of power (Reliance Energy), infrastructure and entertainment. Reliance Money has over 22 lakhs customers and more then 10'000 branches in around 5000 cities in India. Company is among the largest broking and distribution house of financial products and having share of more then 3% of total stock market volume at BSE & NSE. RelianceMoney.com is the web based investment portal (with Online Stock Trading) from Reliance Money. This website enables its customer to invest & manage most of the services provided by Reliance Money including Equity (Stock) Trading, Commodity Trading, Derivatives, Mutual Fund Investment, IPO Investment, Life Insurances, General insurances, Money Transfer, Forex exchange, Gold Coins and Credit Cards Services. Company recently entered in to Wealth Management with tools like investment in equity-linked portfolio management services, structured products, insurance and mutual funds.
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The Reliance Money stock trading websites uses special security features 'Security Token', which makes your online trading experience more secure without complexity. Trade In: BSE and NSE Investment Options The investment options available with Reliance Money online portal are as below: 1. 2. 3. 4. 5. Equity (Stock) Trading at BSE, NSE and NSE F&O IPO Investment Derivatives Trading Forex Trading Commodity Trading(Gold, Silver, Crude etc....) at MCX, NCDEX and NMCE (FAQ's) 6. Mutual Fund Investment 7. Life & General Insurance 8. 'Pure Swiss' Gold Coins (99.99% pure, 24 carat) Reliance Money's Trading Platforms Reliance Money provides 3 different trading platforms for equity trading: 1. Easy Trade Easy Trade ia a browser based platform for first time investors. 2. Insta Plus Insta Plus is a web browser based trading system for those who are very frequent traders & who seek to take benefit out of short-term price movement. This gives real time market data for BSE as well as NSE. 3. Insta Xpress Insta Xpress ia an EXE/Desktop based platform for Active traders and dealers. It provides Integrated funds transfer facility which allows to transfer the funds seamlessly through 24 Banks. Reliance Money Technical Analysis (A paid service) Relance Money offers a simplified, automated, sophisticated technical analysis to Indian retail broking consumers with the help of Recognia's Technical Analysis tools. Recognia, a Canada based company, has proprietary pattern recognition technology capable of recognizing patterns in the price charts of any publicly traded financial instrument including stocks, bonds, funds, commodities, currencies and indexes. The technical services are available for introductory free 7-day trail period to Reliance Money users. Post the trail period, this service is available to users at a nominal subscription of Rs. 99 for 3 months/ Rs. 179 for 6 months/ Rs. 299 for a year, i.e., less than Re 1 a day.
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Reliance Money's Trading Brokerage, AMC and Fees Reliance Money offers lowest brokerage rates in today's online stock trading industry in India. The brokerages are as low as 0.075% for delivery based trading and 0.02 for now delivery. For more detail about Reliance Money‘s brokerage and fees visit the below section of this webpage.
Fee Head Annual Services Charges - For Individuals / HUFs / Trust Annual Services Charges - For NRIs / Foreign Nationals, Corporates / Others Transaction Charges - SELL (Market & Off Market) For instructions given in physical form. Transaction Charges - SELL (Market & Off Market) For instructions received through Internet/ online trading through Reliance Securities Ltd. Reliance Money Demat Account Charges:
DP Charges Rs. 50/Rs. 1000/Rs. 25/-
Rs. 12/-
Note: The brokerage & fees on this webpage may not accurate, please contact your nearest Reliance Money broker for latest available information. Also check rates of Securities Transaction Tax Reliance Money Advantages 1. Extra security features with 'Security Token'', which is the most secure and tested technology in computer world. 2. Simple, easy and fast online stock trading. 3. Almost all investment options are available under one account including Equity Trading, Derivatives, Forex, Commodity, IPO, Mutual Funds and Insurance. 4. Branches are available in all major cities and the number is growing.
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Benefits of having a Reliance Money account: 1. 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. 500/- and transact through Reliance Money. This fee is valid for two months or a specified transaction value*. See the table for details. Validity (wichever is earlier) Turnover limit Access Fee (Rs.) 500 1350 2500 Time Validity 2 months 6 months 12 months Turnover Validity Rs. l Cr. Rs. 3 Cr. Rs. 6 Cr. Non-delivery turnover Rs. 90 Lac Rs. 2.7 Cr. Rs. 5.4 Cr. Delivery turnover Rs. 10 Lac Rs. 30 Lac Rs. 60 Lac
2. It offers Single Window Access to almost all financial products. 3. Its Convenient - Reliance Money's services are through the Internet, Transaction Kiosks and over the phone. 4. It's Safe Accounts are safe guarded with a unique security number that changes every 32 seconds. This number works as a dynamic password to keep your account extra safe. 5. It provides you a 3...in...l facility of Banking, Trading and Demat Account through a single window and transfer funds across accounts seamlessly
4.3
Indiabulls Securities (ISL) is one of the India's capital markets companies providing securities broking and advisory services. Indiabulls Securities is promoted by Indiabulls Group, is one of the country's leading business houses with business interests in Power, Financial Services, Real Estate and Infrastructure.
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Indiabulls Securities also provides depository services, equity research services and IPO distribution to its clients. Company also offers commodities trading through a separate company. These services are provided both through on-line and off-line distribution channels. Indiabulls Securities has been assigned the highest rating BQ-1 by CRISIL. Trade In: BSE and NSE
Indiabulls Securities's Trading Platforms Power Indiabulls (PIB): Power Indiabulls (PIB) is the integrated online trading platform with great speed to invest in Equity, F&O and Commodities. Power Indiabulls main features includes real-time stock prices, Live trading reports, Multiple Market watch, Intraday charting, Technical analysis, Price alerts, News Room for seasoned investors and traders. Power Indiabulls (PIB) is a dedicated desktop (PC based) application, developed specially for active traders. It also provides various kinds of trading reports according to the internet trading users needs. Main features Power Indiabulls terminal are: 1. 2. 3. 4. 5. Live Streaming Quotes and News User can create multiple market watch Instant Trade Confirmation User can set customizable alerts on various scrip-based parameters Value added tools like Financial Calculator, Intraday Charting, Technical Analysis etc. 6. Real time updated reports 7. Multiple Order Books Click here to find more detail about Power Indiabulls trading platform Indiabulls Securities's Trading Brokerage, AMC and Fees
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Trading Account Opening Charges (One Time): Rs. 750 Trading Annual maintenance charges (AMC): Demat Account Opening Charges (One Time): Demat Account Annual Maintenance Charges (AMC): Rs. 500
List of documents required to open an acount 1. Proof of Identity – Copy of PAN Card 2. Proof of Address – Copy of any one of the following (Self Attested) o Passport o Ration card o Voter‘s ID o Driving license o Electricity bill (not more than 2 months old) o Landline Telephone Bill (not more than 2 months old) o Bank Pass Book
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3. Bank Proof – Copy of Bank Pass Book or Personalized Cheque leaf (For Existing Bank Account Holders Only) 4. 3 Photographs
Indiabulls Securities Advantages 1. Brokerage is less compare to other online trading companies. 2. Provide trading terminal 'Power Indiabulls', which is very fast in terms of speed and execution. 3. Indiabulls Securities also provides Mobile Power Indiabulls (MPIB) trading platform. This application allows the client to view live streaming quotes, trade in equities as well as derivatives segment, view trading reports and account details on their Mobile 4.
4.4
Reviews
Sharekhan is online stock trading company of SSKI Group, provider of India-based investment banking and corporate finance service. Sharekhan is one of the largest stock broking houses in the country. Sharekhan's equity related services include trade execution on BSE, NSE, Derivatives,Commodities, Depository Services, Online Trading and Investment Advice. Along with Sharekhan.com website, ShareKhan has 1700 'Share Shops' in 550 cities and serving more than 10,00,000 customers across the nation. It also has international presence through its branches in the UAE. Sharekhan launched online trading portal in 2000, providing fundamental and statistical information across equity, mutual funds and IPOs. Sharekhan offers its services to all types of customers- individual investors and traders, corporate, institutional and NRI's; trade execution facilities for cash as well as derivatives, on BSE and NSE, depository services, mutual funds, initial public offerings (IPOs), commodities trading on MCX and NCDEX and currency trading facilities on NSE, USE & MCX-SX. Sharekhan provides market related news, stock quotes fundamental and statistical information across equity, mutual funds, IPOs and much more. Trade In: BSE and NSE
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Account Types 1. Classic account Allow investor to buy and sell stocks online along with the following features like multiple watch lists, Integrated Banking, demat and digital contracts, Real-time portfolio tracking with price alerts and Instant credit & transfer. a. Online trading account for investing in Equities and Derivatives b. Free trading through Phone (Dial-n-Trade) I. Two dedicated numbers for placing your orders with your cellphone or landline. II. Automtic funds tranfer with phone banking (for Citibank and HDFC bank customers) III. Simple and Secure Interactive Voice Response based system for authentication IV. get the trusted, professional advice of our telebrokers V. After hours order placement facility between 8.00 am and 9.30 am c. Integration of: Online trading + Bank + Demat account d. Instant cash transfer facility against purchase & sale of shares e. IPO investments f. Instant order and trade confirmations by e-mail g. Single screen interface for cash and derivatives 2. Trade Tiger account This is a net based executable application for active traders who trade frequently during the day's trading session. Following are few popular features of Trade Tiger account. a. A single platform for multiple exchange BSE & NSE (Cash & F&O), MCX, NCDEX b. Multiple Market Watch available on Single Screen c. Hot keys similar to a traditional broker terminal d. Tie-up with 12 banks for online transfer of funds e. Different tools available to gauge market such as Tick Query, Ticker, Market Summary, Action Watch, Option Premium Calculator, Span Calculator f. Graph Studies are available including Average, Band- Bollinger, Know SureThing, MACD, RSI, etc Sharekhan's Trading Brokerage, AMC and Fees Account Opening Fees & Annual maintenance charges (AMC)
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Trading Account Opening Charges (One Time): Rs 750 (Classic Account), Rs 1000 (Trade Tiger Account) Trading Annual maintenance charges (AMC): Demat Account Opening Charges (One Time): Demat Account Annual Maintenance Charges (AMC): Rs. 400 (Free for 1st year with trading account.)
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Trading Brokerages
? ? ? ?
Intra-day Trades: 0.1% on the buy side and 0.1% on the sell side. Delivery Based Trades: 0.5% or 10 paise per share or Rs. 16/- per scrip whichever is higher. F&O Trades: 0.1% on the first leg and 0.02% on the second leg if squared off on the same day and 0.1% if squared off on any other day. Options Trades: Rs. 100/- per contract or 2.5% on the premium (which ever is higher).
Sharekhan Advantages 1. Sharekhan offer different brokerage slabs to customers which offer reduced brokerage rates if you opt for our Prepaid Brokerage schemes depending on the volumes of trades done by you. 2. Sharekhan has ventured into trader education with US-based Online Training Academy - one of the leading organizations in trading and investment education globally. 3. Sharekhan has got a tie-up with 12 banks for online transfer of funds. These banks are HDFC, Citibank, IDBI Bank, Axis Bank, OBC, UBI, INDUSIND Bank, Yes bank, ICICI bank, Bank of India, DEUTSCHE Bank and Federal Bank. This means that if you are having a bank account with any of these banks, you can link it with your Sharekhan trading account which will enable you to place an online request for transfer and withdrawal of funds. 4. Trade upto four times of your available balance in your trading account. 5. No DP charges for shares purchased and sold by you via your Sharekhan account. Sharekhan Disadvantages 1. They charge minimum brokerage of 10 paisa per stock would not let you trade stocks below 20 rs. (If you trade, you will loose majority of your money in brokerage). 2. Lots of hidden rules and charges. 3. They do not provide facility to book limit order trades during after-hours. 4. Classic account holders cannot trade commodities. 5. Cannot purchase mutual funds online
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Comparison Table of Brokerage Charges in Here you will find a table comparing intraday brokerage charges and delivery brokerage charges charged by different online brokers in India : Sharekhan, ICICIdirect, Indiabulls, Reliance Money. I constantly try to update this table and try to keep it upto date.
Online Broker
Brokerage for Delivery
Brokerage for Intraday trading
MMC*
Unicon securities Sharekhan brokerage charges ICICI direct brokerage charges Indiabulls brokerage charges 0.03% - 0.50% 0.03% - 0.10%
NIL NIL
0.75%
0.15%
0.25% - 0.50%
0.05% - 0.10%
Reliance Money brokerage charges
0.01%
0.01%
card system
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CHAPTER 5
1. DEMAT DEFFINATION The term "demat", in India, refers to a dematerialized account for individual Indian citizens to trade in listed fsfv fdf stocks or debentures in electronic form rather than paper, as required for investors by the Securities and Exchange Board of India (SEBI). In a demat account, shares and securities are held electronically instead of the investor taking physical possession of certificates. A demat account is opened by the investor while registering with an investment broker (or sub-broker). The demat account number is quoted for all transactions to enable electronic settlements of trades to take place. Access to the demat account requires an internet password and a transaction password. Transfers or purchases of securities can then be initiated. Purchases and sales of securities on the demat account are automatically made once transactions are confirmed and completed
Demat Trading
Instead of signing the transfer deed as seller and delivering share certificates to a broker, you shall give your DP debit instruction when you sell your shares in the electronic form. You can trade through any broker of your choice registered with the stock exchanges connected with NSDL but will have to provide the details of your account with the DP. The money would be received from the broker/ paid to the broker in the same fashion as done in case of buying/ selling of physical shares. The DP will provide you a statement updated every fortnight giving details of your holdings. Shares bought in the electronic form can be pledged/ hypothecated by making application to the DP in the prescribed form. For the purpose of calculation of capital gains tax, the cost of acquisition of shares would be determined on the principle of first in first out. The process of opening an account with a DP is similar to the opening of bank account. Photograph, Introduction and signing the prescribed agreement form are some of the requirements. If there are any discrepancies in your holdings statement or pass book entries, you can contact your DP. If the problem cannot be resolved at DP end, you can approach NSDL. There is absolutely no restriction to the number od DPs you can open accounts with. Just as you can have savings or current accounts with more than one bank, you can open accounts with more than one DP. There is no minimum balance required for your account with DP. In fact you could have nil sesurity in your account. What's the security that a person have with respect to proof of his holdings? Upon opening an
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account with DP, you sign an agreement where the DP indemnifies you for any misuse of your holdings. When any company announces right, bonus or dividend for a particular security, the DP will give details of the clients having electronic holdings of that security as of record date/ book closure to the registrar. The registrar will then calculate the benefits due to all shareholders. The disbursement of cash benefits like dividend or interest will be done by the registrar whereas distribution of securities entitlements will be done by the DP based on information provided by the registrar. you will have to contact the registrar directly. s,
? Demat Process A request form together with the share certificates desired to be dematerialised is given to the DP. He sends the request along with the share certificates to the company/ registrars through NSDL for confirmation of its genuineness. After checking the records, the registrar will destroy the certificates and sends confirmation of dematerialisation to NSDL. NSDL then confirms the dematerialisation of shares to your DP to credit the holding of shares in your account electronically. This takes about 15 days from the date of request. Electronic holdings can be converted back into certificates, if so desired, in a similar fashion as that for dematrialisation. ? 5.2
Demat benefits
The benefits of demat are follows:
? ? ? ? ? ? ? ?
? ? ? ?
Easy and convenient way to hold securities Immediate transfer of securities No stamp duty on transfer of securities Safer than paper-shares (earlier risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc. are mostly eliminated) Reduced paperwork for transfer of securities Reduced transaction cost No "odd lot" problem: even one share can be sold Change in address recorded with a DP 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 the need for notifying companies. Automatic credit into demat account for shares arising out of bonus/split, consolidation/merger, etc. A single demat account can hold investments in both equity and debt instruments. Traders can work from anywhere (e.g. even from home).
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Benefit to the companyThe 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 a company. It provides better facilities for communication and timely service to shareholders and investors. ? Benefit to the investor 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 or bad delivery. It increases overall trading and profitability. It increases confidence in their investors. Depository Participant (DP) Main article: Depository participant A depository (in simple terms) is an institution holding a pool of pre-verified shares held in electronic mode that offers efficient settlement of transactions. A Depository Participant (DP) is an intermediary between the investor and the depository. A DP is typically a financial organization like a bank, broker, financial institution, or custodian acting as an agent of the depository to make its services available to the investors. Each DP is assigned a unique identification number known as DP-ID. As of March 2006, there were a total of 538 DPs registered with SEBI. Demat conversion Converting physical records of investments into electronic records is called "dematerialising" of securities. In order to dematerialise physical securities, investors must fill in a Demat Request Form (DRF), which is available with the DP and submit the same along with physical certificates. Every security has an ISIN (International Securities Identification Number). A separate DRF must be filled for each ISIN. The complete process of dematerialisation is outlined below:
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The investor surrenders the certificates for dematerialisation to the DP. DP updates the account of the investor.
Demat options There are many hundreds of Depository Participants (DPs) offering the Demat account facility in India as of September 2011. A comparison of the fees charged by different DPs is detailed below.
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There are a few distinct advantages of having a bank as a DP. Having a Demat account with a bank DP, usually provides quick processing, accessibility, convenience, and online transaction capability to the investor. Generally, banks credit the Demat account with shares in case of purchase, or credit a savings account with the proceeds of a sale, on the third day. Banks are also advantageous because of the number of branches they have. Some banks give the option of opening a demat account in any branch, while others restrict themselves to a select set of branches. Some private banks also provide online access to the demat account. Hence, the investors can conveniently check online details of their holdings, transactions and status of requests through their bank's net-banking facility. A broker who acts as a DP may not be able to provide these services. Fees involved There are four major charges usually levied on a demat account: account opening fee, annual maintenance fee, custodian fee and transaction fee. Charges for all fees vary from DP to DP. Account-opening fee Depending on the DP, there may or may not be an opening account fee. Private banks, such as HDFC Bank and AXIS Bank, do not have one. However, players such as ICICI Bank, Globe Capital, Karvy Consultants, Bajaj Capital Limited and State Bank of India do impose an opening fee. Most players levy this when re-opening a demat account. However, the Stock Holding Corporation offers a lifetime account opening fee, which allows the investor to hold on to his/her demat account for a long period. The fee is also refundable.
Annual maintenance fee This is also known as folio maintenance charges, and is generally levied in advance... Custodian fee This fee is charged monthly and depends on the number of securities (i.e. ISINs) held in the account. It generally ranges between Rs 0.5 to Rs 1 per ISIN per month. DPs will not charge a custody fee for an ISIN on which the companies have paid one-time custody charges to the depository. Transaction fee The transaction fee is charged for crediting/debiting securities to and from the account on a monthly basis. While some DPs, such as SBI, charge a flat fee per transaction, HDFC Bank and ICICI Bank peg the fee to the transaction value, which is subject to a minimum amount. The fee also differs based on the kind of transaction (buying or selling). Some DPs charge only for debiting the securities, while others charge for both. Some DPs also charge the investor even if the instruction to buy/sell fails or is rejected. In addition, service tax is also charged by the DPs.
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In addition to the other fees, the DP also charges a fee for converting the shares from the physical to the electronic form or vice-versa. This fee varies for both demat (physical-toelectronic) and remat (electronic-to-physical) requests. For demat transactions, some DPs charge a flat fee per request in addition to the variable fee per certificate, while others charge only the variable fee. For instance, Stock Holding Corporation has charged Rs 25 as the request fee and Rs 3 per certificate as the variable fee. However, SBI has charged only the variable fee, as Rs 3 per certificate. Remat requests also have charges akin to that of demat. However, variable charges for remat are generally higher than demat.
Indian Banking System 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. An investor must have his/her PAN card in original at the time of opening of the account (mandate effective from April 1, 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 the 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 BOID (Beneficiary Owner Identification number). The DP may revise the charges by giving 30 days notice in advance. SEBI has rationalised the cost structure for dematerialisation 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 9, 2005 advised that with effect from January 9, 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.[1] 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. 5.2 Disadvantages of Demat
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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 By-Laws of various depositories.
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Agreements are entered at various levels in the process of dematerialization. These may cause anxiety to the investor desirous of simplicity.
? Transfer of shares between DPs To transfer shares, an investor has to fill one of two kinds of Depository Instruction Slip (DIS). The first check made is whether both Demat accounts are at the same depository. There are two depositories: (CDSL (Central Depository Securities Limited) and NSDL (National Securities Depository Limited)). If both demat accounts are not at the same depository, then an Inter Depository Slip (Inter DIS) has to be filled and submitted. Otherwise, an Intra Depository Slip (Intra DIS) has to be filled and submitted. For example:
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If there is one Demat account with CDSL and the other Demat account with NSDL, then an Inter-DIS is needed. (In case the investor needs an Intra-DIS, the investor should check with the broker, since brokers usually issue an Intra-DIS). Now that the correct DIS has been determined, information pertaining to the transfer transaction has to be entered: scrip name, INE number, quantity in words and figures. Finally, the investor should submit that DIS to the broker with signatures. The transfer broker shall accept that DIS in duplicate and acknowledge receipt of DIS on duplicate copy.
The investor should submit the DIS when the market is open. Accordingly, date of submission of DIS and date of execution of DIS can be same or a difference of one day is also acceptable. The investor also has to pay the broker some charges for the transfer. ? Security recommendations A Depository Instruction Slip (DIS) is almost like a cheque book, so it can be misused if issued blank. Hence, an investor should exercise sufficient caution while issuing a DIS slip. For example: an investor should deposit only a completely filled-in slip to the broker. Unfilled rows should be cancelled out so that they cannot be tampered with.
What is a depository? A depository is an organisation where share certificates of a shareholder are held in electronic form. This is done at the request of the shareholder through a depository participant (DP). If an investor wants to use services offered by a depository, he/she has to open an account with the depository through a DP - more about him later - much like opening an account with any branch of a bank to utilise its services. In fact, in many ways, a depository is similar to a bank.
Who is this DP ? A DP is your representative in the depository system. Your DP will maintain your securities account balances and intimate to you the status of your holdings from time to time.
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According to Sebi guidelines, financial institutions, banks, custodians, stock brokers etc., can become DP's. Why should investor buy/sell shares in the depository mode ? Currently, it takes an investor two and three months to get shares registered in his name. Besides, chances of shares being lost or stolen during transit are real. But when you buy shares which are already in the depository mode, you become the owner of those shares in the depository within a day of the settlement being completed. You don't have to apply to the company to register the shares in your name. The possibility of loss or theft when certificates are posted to the company is eliminated. Will there be a charge for the opening of an account or for every transaction ? There will be reasonable charges for the opening of accounts and also for every transaction in the accounts. The depository will publish its charges and the DPs will also have to make their charges known to the market. Thirty three DPs (names can be got from www.nsdl.com) are offering investors various incentives - including not charging them anything for opening an account if they sign up before January 4, 1999. How will I know that my DP has updated my account after each transaction ? Just like a bank, the DP will give you a passbook or a statement of holdings. The statement of holdings will be deposited to you periodically by the DP. However, the statement of holdings can be sent to you as and when you request it.
What happens if I lose my holdings-statement or depository passbook ? Simple. Inform your DP and obtain a duplicate holdings statement or depository passbook. Your holdings statement or passbook cannot be used by anybody else for trading in your account. Who will give me the benefits arising out of my holdings, say a bonus or dividend ? When any company announces rights, bonus or dividend, the depository will give all details of the clients having electronic holdings of that security as the corporate benefits due to all the shareholders. The disbursement of cash benefits such as dividend/interest will be done by the registrar whereas the distribution of securities entitlements (in case of rights or bonus issue) will be done by the depository based on the information provided by the registrar. Can electronic holdings be converted back into certificates ? Yes. If you wish to get back your securities in the physical form all you have to do is to request your DP for the rematerialisation of the same. Rematerialisation is the term used for converting electronic holdings back into certificates. Your DP will forward your request to the depository after verifying that you have the necessary security balances. The depository will in turn intimate the registrar who will print the certificates and dispatch them to you.
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CHAPTER 6 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 ?advance learner ?s 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.
6.1 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.
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6.1
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)
TOOLS OF ANALYSIS
In the project work quantitative technique & percentage method are has been used.
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CHAPTER 7 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 100 population was assumed to be representing entire population was interested .Demographic factor like age, income and educational background was used for the classification purpose .
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7.1
DATA ANALYSIS AND INTERPRETATION
Q1. In which of these Financial Instruments do you invest into? Financial Instrument Mutual Fund & insurance Bond Online trading Derivative Percentage of respondent 75% 16% 7% 2%
Percentage of respondent
Mutual Fund & insurance Bond Online trading Derivative
Figure 1 Result of Preference of Investment
Interpretation: This shows that although the mutual funds& insurance 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.
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Q2. Are you aware of online Share trading?
Aware of online share trading Yes No
Percentage of respondent 72% 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.
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Q3. Heard about unicon securities ?
Awareness of unicon Broking Yes No
Percentage of respondent 35% 65%
Result of Awareness of unicon scecurities
35%
yes 65% no
Interpretation: This interpretation shows that 65% respondants are not aware of UNICON securities only 35% are aware about this security..
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Q4. Do you know about the facilities provided by unicon stock Broking?
Awareness of unicon stock Broking Services Yes No
Percentage of respondent 36% 64%
Awareness of unicon Facilities
36%
yes 64% No
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.
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Q .5 Are you satisfied with the company ?
Company Name Unicon ICICI Sherkhan
Percentage of respondent 12 20 15
20 18 16 14 12 10 8 6 4 2 0 unicon ICICI sherkhan
Interpretation:30% have respondent of unicon securities , 30% have respondent of sherkhan, 40% have respondent of ICICI.
Q.6 Which broking company Demat account offered you a large no. of services?
Company Name Unicon
Percentage of respondent 12
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sherkhan ICICI
15 20
20 18 16 14 12 10 8 6 4 2 0 unicon sherkhan ICICI 4th Qtr
INTERPRETATION: 20% have respondent of unicon , 36% have respondent of HDFC, 44% have respondent of ICICI.
Q.8 Which company provide a less BROKARAGE rate ?
Company Name Unicon Sherkhan ICICI
Percentage of respondent 22 11 17
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25 20 15 10 5 0 unicon sherkhan ICICI 4th Qtr
INTERPRTETATION: 44% have respondent of unicon , 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 Unicon HDFC ICICI
Percentage of respondent 22 10 18
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18 16 14 12 10 8
6
4 2 0
unicon
sherkhan
ICICI
INTERPRETATION:22% have respondent of unicon securities Ltd., 20% have respondent of sherkhan, 36% have respondent of ICICI.
Represent a pie char
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USER OF DEMAT ACCOUNT
ICICI SHERKHAN UNICON
28% 41%
31%
OBSERVATION To study the sales and distribution management and improve the Customer Acquisition Process by anal yzing the consumer behavior, response and mindset towards the product and services the company offers.
1.
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Preference of Investment:
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Consumers want to invest 75% in Insurance 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. 4. 5.
Awareness of unicon 48% consumers are know about unicon and 52% consumers are not know about unicon Awareness about facilities provided by unicon securities : 36% consumers are aware about the facilities provided by unicon securities and 64% consumers are not know about the facilities provided by unicon. Availability of Bank 30% have respondent of unicon securities Ltd, 30% have respondent of sherkhan , 40% have respondent of ICICI. Which broking Demat account offered you a large no. of services? 15% have respondent of unicon securitites Ltd., 20% have respondent of sherkhan , 36% have respondent of ICICI. Provide a less BROKARAGE rate 44% have respondent of unicon securitites Ltd., 22% have respondent of sherkhan, 34% have respondent of ICICI. Provide a large no. of Products and services 44% have respondent of unicon securities Ltd., 20% have respondent of HDFC, 36% have respondent of ICICI.
6.
7.
8.
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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.
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SUGGESTION
1. The unicon securities pvt Ltd. Have good image 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 .ex- many social wib site
Facebok ,google ,yahoo etc 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 account . 5. For opening an account they require lots of signatures in a kit, which should be reduced.
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SUMMARY
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.
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CONCLUSION
Demat account is way to enter in the stock market . Unicon securities. 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 unicon securities is still growing industry in India Unicon account have less brokerage rate ,and provide the batter product and service . They will be better
It provide a security with the use of special type of key .
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BIBLIOGRAPHY
Websites:
www.unicon.com www.sherkhan.com www.icicidirect.com www.demataccount.com www.google.com
Reference books:
1. FINANCIAL INSTITUTIONS AND MARKETS 2.INVESTMENT MANAGEMENT
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ANNEEXURE
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QUESTIONNAIRE Name : Contect no : Gender : male female E-mail :
What is your age? 15-25 25-45 45-65 above 65
Which company you have account?
.....................................................................................
Since when are you trading in the share market? Less then 1 yr 1-3 yrs 4-6 yrs more then 6yrs
What type of trading do u prefer? Interaday delivery both
What is the brokerage charged? 0.3 - .30 paisa 0.2 - .20 paisa 01 -.10 paisa more then 03-.30 -paisa
What interest you in share market ? More some time free time not interest
What are the reasons for operating with the stared company ? ................................................................................................................................................ Are you satisfied with the company ? yes no
are you satisfied with the investment tips ? yes no ether satisfied or not satisfied
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costumer ? ............................................................................................................................................. xi) Have you switched from one firm to another? If yes then reasons and whichcompany have you switched to? …………………………………………………………………………………… xii) What are the different attributes that the client looks forward for a brokerage house?………………………………………………………………………………… .xiii) What were the areas where the MOST could not meet the client‘s expectation level? )Brokerage fees b)Services c)Research & advices d)Complaints handling e)Produ
Information and knowledge provided by ?Mr sachin gupta (branch manger Manager) and other Dealers. Data collected from Relationship Managers of other brokerage houses. • Data collected from present client and people interested in stock market.\
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PROCEDURE:-
The procedure to be followed is a simple four-step plan, which is as followed: -
STEP 1:-Firstly, to understand the products of other companies it is essential to understand the products and policies of unicon. Therefore, first a detail study of various products being offered by unicon is to carried on
.STEP 2:-After studying the working of a brokerage house and various products of unicon,a list of various houses to be visited was prepared and then the data collecting procedure was started by personally visiting these 16 houses as a customer and meeting the RM.
STEP 3:-After collecting and analyzing the data, a questionnaire is to be designed, keeping inmind various aspect to be covered. Then a set of customer and investors is to be targeted for the survey followed by the procedure of the survey.
STEP 4:-Lastly, all the data is to be reconciled and the result is to be drawn, preparing all there port and the presentation, it is to be submitted to the company and faculty guide.
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doc_338132161.docx
( BY UNICON SECURITIES PVT. LTD1”)
Summer Internship project report Submitted toward partial Fulfillment Of POST GRADUATE DIPLOMA IN MANAGEMENT / POST GRADUATE DIPLOMA IN MANAGEMENT-MM/ POST GRADUATE DIPLOMA IN MANAGEMENT-IT
(APPORVED BY AICTE,GOVT.OF INDIA) Academic session 2011-2013
Submitted by: Sunil Kumar Roll.no –BM-011224 Under the Guidance of : Industry guide Mr Sachin Gupta Branch manager(equity share) faculty guide Dr.Tapan Kumar Nayak Chair Person of pgdm
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ACKNOWLEDGEMENT
It was a great opportunity for me to work with UNICON SECURITIES PVT. 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. Sachin Gupta, branch Manager of unicon . who has been a constant source of inspiration for me during the completion of this project. He gave main valuable inputs during my end eavor to complete this project
.I am also extremely grateful to faculty guide Mr. Tapan Kumar Nayak ,and Mr Niraj Shanghi Sir who always help me made my project report. to have given me this opportunity to work with him and gain valuable insights. during the entire tenure of this project. Not to forget, all those who have kept my spirits surging and helped delivering my best.
Sunil Kumar Roll .No BM-011224 Pgdm (2011-2013)
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DECLARATION
I Sunil Kumar student of Post Graduate Diploma in Management (PGDM) 1st yaer have personally worked on the report titled ?PROCEDURE A DEMAT ACCOUNT OPENING? under the guidance of .Mr Sachin Gupta The data mentioned in this report were obtained during the field work done and collected by all of the group members. Data obtained from Internet and books have been duly acknowledged. We, hereby affirm that the work has been done by us in all its aspects and results reported in this study are genuine and true to best of our knowledge.
Sunil Kumar Roll .No BM-011224 Pgdm (2011-2013)
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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 Financial & 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 “Procedure a Demat Account opening”
Sunil Kumar Roll .No BM-011224 Pgdm (2011-2013)
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NEED OF THE STUDY
The need of the study arises because of the reason that a trainee must understand the company,Afrist step is enter in the stock market is demet account . 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 towork well for the organization. From the study I have learned very much, about the company‘s well as the strategy of the customers, which helps me a lot at my working days
Sunil Kumar Roll .No BM-011224 Pgdm (2011-2013)
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OBJECTIVE
To find the market potential and market penetration of unicon securities pvt ltd product offerings in noida and Delhi . ? To collect the real time information about preference level of customers using ofening Demat account and their inclination towards various other brokerage firms e.g.India bulls, Share khan, ICICI direct, Religare money, ? To expand the market penetration of unicon securities pvt ltd. ? To provide pricing strategy of competitors to fight cutthroat competition. ? To increase the product awareness of unicon securities pvt ltd for investment solutions. ? To awareness of the demat account to costumer.
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TABLE OF CONTENT
S.no 2
Contents Acknowledgement Declaration
page no. 2 3 4 5 6 7 9 10 12 13 14 15 16 17 18 21 22 23
3 4
Certificate Preface Objective Need of the study
Chapter1
Company profile 1.1 Unicon background 1.2 BRANCHES ALL OVER INDIA 1.3 Financial performance of unicon 1.4 Unicone product & service 1.5 Benefit of investing with unicon 1.6 Unicon plus &(features) 1.7 IPO- on line
Chapter 2 Chapter 3
Trading in equity share Unicon special charge of opening demat account 3.1 Depository charges 3.2 Brokerage charge
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3.3 Advance brokerage and ppo plan 3.4 Document required opening demat account Chepter4 Competitors 4.1 Review of the icici 4.2 Review of the reliance money 4.3 Reviews of the indiabulls 4.4 Review of the sherkhan 4.5 Comparison Table of Brokerage Charges in Chepter5 5.1 5.2 Chapter 6 Demat definition Demat benefits Disadvantages of Demat Research methodology 6.1 Methods of data collection( primary Chapter 7 Research design 7.1 Data analysis and interpretation 7.2 Chapter 10. Observation Limitation Suggestions Summary Conclusions Bibliography ANNEEXURE
24 26 28 29 33 36 38 41 42 43 46 50 51 52 53 61 63 64 65 66 67 68
Procedure of made this project report
71
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CHEPTER 1
1.INTRODUCTION TO UNICON UNICON is a financial services company which has emerged as a one-stop investment solutions provider. It was founded in 2004 by two visionary and hard working entrepreneurs, Mr. Gajendra Nagpal and Mr. Ram M. Gupta, who possess expertise in the field of Finance. The company is headquartered in New Delhi, and has its Corporate office in Mumbai with regional offices in Kolkata, Chennai, Hyderabad and Noida UNICON is a professionally managed company led by a team with outstanding managerial acumen and cumulative experience of more than 400 man years in the financial markets The Company is supported by more than 2400 Uniconians and has an extensive network of over 323 business offices in 152 cities across India. With a customer base of over 200,000 the Unicon Group has an eye for the intricate financial needs of its clients and caters to both their short – term and long – term financial needs through a comprehensive bouquet of investment services. It has been founded with the aim of providing world class investing experience to the investing community. These services range from offline & online trading in equity, commodities and currency derivatives to debt markets to corporate finance and portfolio management services. The company has a sizable presence in the distribution of 3rd party financial products like mutual funds, insurance products and property broking. It also provides expert Advisory on Life Insurance, General Insurance, Mutual Funds and IPO‘s. The distribution network is backed by in-house back office support to provide prompt and efficient customer service The Equity broking arm – UNICON Securities Pvt. Ltd offers personalized premium services on the NSE, BSE & Derivatives market. The Commodity broking arm Unicon Commodities Pvt. Ltd offers services in Commodity trading on NCDEX and MCX. The UNICON group also has a PCG division providing investments solutions for High Net Worth Individuals. The Corporate Advisory Services arm – Unicon Capital Services (P) Ltd offers entire gamut of Investment Banking services to corporates. UNICON can boast of some of the most respected names in the private equity space like Sequoia Capitals, Nexus India Capital and Subhkam Ventures as its shareholders
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Unicon background
Unicon is one of the leading retail brokerage firms in the country. It is the retail broking arm of the Delhi, which has over eight decades of experience in the stock broking business. Unicon offers its customers a wide range of equity related services including trade execution on BSE, NSE, Derivatives, depository services, online trading, investment advice etc. With more than 150 share shops in 80 cities, and India‘s premier portal, www.uniconindia.in, we reach out to customers like no one else. Unicon offers you trade execution facilities on the BSE and the NSE, for cash as well as derivatives, depository services and most importantly, investment advice tempered by 5 years of research and broking experience. ]The firm‘s online trading and investment site—www.uniconindia.in —was launched in 2004. The site gives access to superior content and transaction facility to retail customers across the country. Known for its jargon-free, investor friendly language and high quality research, the site has a registered base of over one-lakh customers. In Delhi (N.C.R) Region approx- 1000 online share trading accounts per Month are opened. The content-rich and research oriented portal has stood out among its contemporaries because of its steadfast dedication to offering customers best-of-breed technology and superior market information. The objective has been to let customers make informed decisions and to simplify the process of investing in stocks. Unicon has launched Speed Trade in 2004, a net-based executable application that emulates the broker terminals along with host of other information relevant to the Day Traders. This was for the first time that a net-based trading station of this caliber was offered to the traders. In the last six months Speed Trade has become a de facto standard for the Day Trading community over the net. Unicon ground network includes over 300 centers in 140 cities in India, of which 63 are fully owned branches.
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Unicon has always believed in investing in technology to build its business. The company has used some of the best-known names in the IT industry, like Sun Microsystems, Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette, Verisign Financial Technologies India Ltd, Spider Software Pvt Ltd. to build its trading engine and content. With a legacy of more than 5 years in the stock markets, the Unicon group ventured into institutional broking and corporate finance 5 years ago. Presently Unicon is one of the leading players in institutional broking and corporate finance activities. Unicon holds a sizeable portion of the market in each of these segments. SSKI‘s institutional broking arm accounts for 7% of the market for Foreign Institutional portfolio investment and 5% of all Domestic Institutional portfolio investment in the country. It has 60 institutional clients spread over India, Far East, UK and US. Foreign Institutional Investors generate about 65% of the organization‘s revenue, with a daily turnover of over US$ 2 million. The Corporate Finance section has a list of very prestigious clients and has many ?firsts‘ to its credit, in terms of the size of deal, sector tapped etc. The group has placed over US$ 1 billion in private equity deals. Some of the clients include BPL Cellular Holding, Gujarat Pipavav, Essar, Hutchison, Planet Asia, and Shopper‘s Stop. Unicon is ? ? ? Among the top 3 branded retail service providers No. 2 player in online business Largest network of branded broking outlets in the country servicing 100,000 clients
Unicon is the retail broking arm organization with more than eight decades of trust & credibility in the stock market. Unicon is amongst pioneers of investment research in the Indian market. In 1984 it was ventured into Institutional Broking & Corporate Finance. Unicon is a leading domestic player in Indian institutional business, which is having over US$ 5 billion of private equity deals
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1.2 BRANCHES ALL OVER INDIA
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1.3 Financial Performance of Unicon
Unicon is India's leading retail financial services company. They have over 588 share shops across 213 cities in India. While their size and strong balance sheet allow them to provide customers with varied products and services at very attractive prices, their over 750 Client Relationship Managers are dedicated to servingcustomers uniqueneeds. Unicon is lead by a highly regarded management team that has invested crores of rupees into a world class Infrastructure that provides clients with real-time service & 24/7 access to all information and products. Their flagship Unicon Professional Network offers real-time prices, detailed data and news, intelligent analytics, and electronic trading capabilities, right at your fingertips. This powerful technology complemented by their knowledgeable and customer focused Relationship Managers is creating a world of Smart Investor.
Unicon offers a full range of financial services and products ranging from Equities to Derivatives enhance your wealth and hence, achieve your financial goals.
Unicon Client Relationship Managers are available to the customers to help with their financial planning and investment needs. To provide the highest possible quality of service, Share khan provides full access to all our products and services through multi-channels.
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1.4 UNICON PRODECT & SERVICES
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1.5 BENEFITS OF INVESTING WITH UNICON ACCESSIBILITY Unicon provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for investors. These services are accessible through our centers across the country (Over 250 locations in 123 cities), over the internet (through the website www.sharekhan.com) as well as over the Voice Tool. CONVENIENCE You can call our Dial-n-Trade number (1-600-22-7050) to get investment advice and execute your transactions. We have a dedicated call-center to provide this service via a toll-free number from anywhere in India.
ADVANTAGES ? Secure Order by Voice Tool Dial-n-Trade. ? Automated Portfolio to keep track of the value of your actual purchases. ? 24x7 Voice Tool access to your trading account. ? Personalized Price and Account Alerts delivered instantly to your Cell Phone & E-mail address. ? Special Personal Inbox for order and trade confirmations. ? On-line Customer Service via Web Chat. ? Anytime Ordering.
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1.6 :UNICON PLUS This account allows the client to trade through our website and is suitable for the retail investor who is risk-averse and hence prefers to invest in stocks or who do not trade too frequently. FEATURES:? Online trading account for investing in Equity and Derivatives ? Both NSE & BSE online and Trading through website Live terminal ? Both Cash & F&O ? No brokerage commitment required ? Integration of On-line trading, Saving Bank and Demat Account. ? Instant cash transfer facility against purchase & sale of shares. ? Competitive transaction charges. ? Instant order and trade confirmation by E-mail. ? Streaming Quotes.(Cash & Derivatives) ? Personalized market watch. ? Single screen interface for Cash and derivatives and more. ? Provision to enter price trigger and view the same online in market watch.
UNICON SWIFT UNICON SWIFT is an internet-based software application that enables anyone to buy and sell in an instant. It is ideal for active traders and jobbers who transact frequently during day‘s session to capitalize on intra-day price movement.
FEATURES:? Instant order Execution and Confirmation. ? Single screen trading terminal.(NSE AND BSE BOTH)
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? Real-time streaming quotes, tic-by-tic charts. ? Market summary (Cost traded scrip, highest value etc.) ? Hot keys similar to brokers‘ terminal. ? Alerts and reminders. ? Back-up facility to place trades on Direct Phone lines. DIAL-N-TRADE Along with enabling access for their trade online, the UNICON PLUS and UNICON SWIFT ACCOUNT also gives their customers Dial-n trade services. With this service, all the customers need to do is dial to their dedicated phone lines 1-800-22-7050.
1.7: IPO On-line The customers can apply all the forthcoming IPO online hassle-free.
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CHEPTER 2
TRADING The Exchange, which had an open outcry trading system, had switchedover to a fully automation computerized mode of trading known as BOLT( BSE on line Trading) System. Through the BO System the members now e n t e r o r d e r s f r o m T r a d e r w o r k S t a t i o n s ( T W S s ) i n s t a l l e d i n t h e i r o f f i c e instead of assembling in the trading ring.Earlier, the member of the exchange were permitted to open trading terminals only in Mumbai. However, in October 1996, the Exchange obtained permission from SEBI for expansion of its BOLT network to locations outsideMumbai. In terms of the permission granted by SEBI and certain modificationannounced later, the members of the Exchange are now free to install their trading terminals at any place in the country.I n o r d e r t o e x p a n d t h e r e a c h o f B O L T n e t w o r k t o c e n t e r s o u t s i d e Mumbai and support the smaller regional, Stock Exchanges, the Exchange hasas on August, 31, 2002 admitted subsidiary companies formed by 13 Regional
Stock Exchanges as its members. The members of these Regional S t o c k Exchanges work as sub-brokers of the member-brokers of the Exchanges.The objective of the granting membership to the subsidiary companiesformed by the Regional Stock Exchanges were to reach out to investors inthese centers via the members of these Regional Exchanges and provide theinvestors in these areas access to the trading facilities in all scrips listed on theExchanges.T r a d i n g o n t h e B O L T S y s t e m i s c o n d u c t e d f r o m M o n d a y t o F r i d a y between 9:55 a.m. and 3.30 p.m. the scrips traded on the exchange under ?A‘?B2‘ ?F‘ and ?Z‘ groups. The number of scrips listed on the Exchange under ?A‘ B!‘, ?B2‘ and ?Z‘ groups, which represents the debt market (fixed income securities) segment wherein 748 securities were listed as on August 31, 2002.The ?A‘ group was introduced by the Exchange in July 1999 and covers thec o m p l a i n t s w h i c h h a v e f a i l e d t o c o m p l y w i t h l i s t i n g r e q u i r e m e n t s and/or f a i l e d t o r e s o l v e i n v e s t o r c o m p l a i n t s o r h a v e n o t m a d e t h e r e q u i r e d arrangements with both the Depositiories Viz, Central dematerialization of their securities by the specified date, i.e., September 30,2001. Companies in?Z? groups for not complying with the provisions of the listing Agreement a n d / o r p e n d i n g i n v e s t o r c o m p l a i n t s a n d t h e b a l a n c e c o m p a n i e s w e r e o n account of not making arrangements for dematerialization of their securities with both the depositories. 1516 companies have been put in ?Z? group as atemporary measure till they make arrangements for dematerialization of
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their securities. Once they finalize the arrangements for dematerialization of their s e c u r i t i e s t r a d i n g a n d s e t t l e m e n t i n t h e i r s c r i p s w o u l d b e s h i f t e d t o t h e i r respective erstwhile groups.
The Exchange has also the facility to trade ?C? group which covers theodd lot securities in ?A‘ ?B1‘ ‘B2‘, and ?Z? groups and Rights renunciationsin all the groups of scrips in the equity segment. The Exchange thus, providesa facility of market participants of on-line trading in odd, lots of securities andRights renunciations. The facility of trading in odd lots of securities not onlyoffers an exit route to investors to dispose of their odd lots of securities but also provides them an opportunity to consolidate their securities into marketlots.T h e ? C ? g r o u p c a n a l s o b e u s e d b y i n v e s t o r s f o r s e l l i n g u p t o 5 0 0 shares in physical form in respect of scrips of companies where trades are to be compulsory settled by all investors in demat mode. This scheme of selling physical shares in compulsory demat scrips is called as Exit Route Scheme.With effect from December, 3,2001, trading in all securities listed in e q u i t y s e g m e n t o f t h e E x c h a n g e t a k e s p l a c e i n o n e m a r k e t s e g m e n t , v i z , compulsory rolling Settlement Segment.
Benefits of Investing in the Stock Market Many shareholders find that trading on the stock market can be quite profitable provided that they have enough information about how likely a business is likely to increase its profits in the near future. Higher profits translate into shares that are worth higher amounts. If a share goes up a substantial amount in value, a shareholder can sell it and reap the difference between the increase and the price initially invested in the share. These types of profits are called dividends, and they can be in the form of cash payments or additional shares according to different company policies. Buying and selling shares on the stock market can bring potentially large amounts of profit for savvy traders. Some people have even built noticeable wealth from these particular investments. Owning shares also gives a trader the benefit of having a vested interest in a chosen business‘s operations and ventures.
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Basics of Stock Market Brokerage Accounts Before buying any shares, a new investor will need to open a brokerage account in order to move invested money into the stock market. This type of account is usually structured in two possible ways: as a cash account or a securities account. Cash accounts require investors to pay the initial prices of their chosen shares up front in full. Securities accounts allow them to make a partial payment for their shares and then pay the rest of the balance out of the dividends they earn once the shares increase in value. Different Types of Brokerage Accounts for Stock Market Trading In addition to the two basic structures of cash accounts and securities accounts, investors have a range of options for enlisting the help of a knowledgeable stock broker. A full service broker takes larger commission payments from any dividends but also offers the most comprehensive guidance for newcomers to stock market trading. Many investors feel that a full service broker is worth the investment because these kinds of brokers are able to give detailed advice about which shares to buy and sell within a specific time frame. Discount brokers do not offer the in-depth advice of full service brokers, but they usually charge substantially lower commissions from earned dividends. Some financial advisers can be additional sources of advice for getting started with stock market trading. New investors typically consult a financial adviser who has prior experience as a broker for the best possible outcomes. Investment bankers can be other sources of tips and guidance for selecting the optimal stock market trading options for each individual‘s initial budget and goals. Online Stock Market Trading Options Companies such as etrade and Scottrade have become familiar to many people as possible options for getting started with trading on the stock market. The process involves making a small payment per transaction, and the company offers thousands of different choices for the businesses whose shares investors can purchase. Etrade is also known for its comprehensive education resources to help new investors learn strategies to increase their chances of earning dividends from their stock market shares. Scottrade operates with a similar range of choices for opening up a stock market brokerage account that can be tailored to different investors‘ preferences and initial purchasing budgets. Opening a Stock Market Brokerage Account The typical online account requires a basic application that includes an investor‘s contact information, employer information, and either social security number or tax payer identification number. Many online stock market trading accounts also require an initial monetary deposit or minimum number of share purchases. The average opening fee is relatively low, usually between $7 and $10 for most accounts.
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CHAPTER 3
? A special charges opening demat account in stock market through unicon securities
Charge
UNICON PLUS
UNICON SWIFT
Special rate of Account Opening Rs. 400/Rs. 500/- (LIFE TIME)
Monthly Commitment Charge
Rs. NIL
Rs. NIL
Rate of Brokerages
Intraday-0.03% Delivery-0.30%
Intraday-0.03% Delivery-0.30%
*Refundable in case the brokerage is more than Rs.500/= p.m. Or quarterly For UNICON SWIFT the Monthly Recurring Fee of Rs.NIL per month is very nominal considering the benefits of the product. This access charges will be debited to all the new
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customers signed up after Sep15 2004. And at the end of the month if the client has contributed more than Rs.500 as brokerage the access charge of Rs.500 will be credited back to the clients account. Please note - this credit of Rs.500 will be refunded only to customers who have contributed more than Rs.500 as brokerage during the month.
3.1 DEPOSITORY CHARGES: Account Opening Charges Annual Maintenance Charges
Rs. 400 Rs. NIL first year Rs. 200 Per annum from second year onward
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3.2 BROKERAGE CHARGED 0.03% Plus Taxes for Each leg of Intra-day trade 0.30% Plus Taxes for trades resulting in delivery
FUNDING FACILITY:Three basic types of funding: . T + 3 : - Intraday: - unicon provides 10 times funding Source: Financial report of unicon securities ltd.Shareholding Pattern
TIE UPS: Tie up with four banks i.e. HDFC Bank Ltd, AXIS Bank, UTI bank , ICICI Bank for online money transfer.
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3.3 Off line trading in stock market Unicon advantage brokerage plans Subscri ption Fee(in inr) excludi ng Service tax Subscrip tion Fee cheque amount( in INR) Validi ty perio d in mont hs Broke rageDeliv ery in INR) Broker ageInterad ay &futur e(in INR) Broker age Option s(in INR) Aoc charg es (in INR) Advant age Tradin g softwar e charge s((in INR) Broker age Deliver y post Subscri ption Period Broker age interad ay& Future s post Subscri ption period( in INR) 4p Brokera ge Options post Subscri ption prieod
3000
3309
12
30p
3.5p
Rs.70p er or1%o f premiu m whiche ver is higher Rs.70p er or1%o f premiu m whiche ver is higher Rs.65p er or1%o f premiu m whiche ver is higher Rs.40p er or1%o f premiu
200
500
40p
Rs.70pe r or1%of premiu m whichev er is higher
6000
6618
12
25p
3p
free
free
35p
3.5
Rs.70pe r or1%of premiu m whichev er is higher
12000
13236
12
20p
2.5p
free
free
25
3p
Rs.70pe r or1%of premiu m whichev er is higher
24000
26472
12
18p
2p
free
free
25
3p
Rs.70pe r or1%of premiu m
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m whiche ver is higher 48000 52944 12 15p 1.5p Rs.30p er or1%o f premiu m whiche ver is higher Rs.25p er or1%o f premiu m whiche ver is higher free free 25 2.5
whichev er is higher
Rs.70pe r or1%of premiu m whichev er is higher
96000
105888
12
10p
1p
free
free
25
2.5
Rs.70pe r or1%of premiu m whichev er is higher
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PPO PLAN (PAY PER ORDER) PPO is a pay per order which is pay only when investor purchase/sell it is benefit off the investor on pay per order whether those order is one lakh to one crore only pay according which plan customer prefer .there are some term as u have to Sign which u give advance brokerage made by unicon company,
One order only 5 Rs weather that order is one corre or ten corre doesn‘t matter what was brokerage company give other costumer . Please tick &sing the plan of your choice PPO plan 15k PPO plan 25k PPO plan 50k PPO plan 1 Lac Subscriptio n fee(inINR) exculiding service tax Subscription Per order Validity Account Fee cheque charge in opening amount intraday,delivery charging fee(inINR) and In INR F&O(in INR) Advanced trading software charge
15000
16854
25
1 year
Free
Free
25000
28090
15
3year
Free
Free
56180 50000
15
3 year
Free
Free
100000
112360
5
10 years
Free
Free
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3.4
DOCUMENTS REQUIRED ? As per KYC guide lines there needs to be Photo Identity and Address proof of the customer. The required documents are mentioned below:-
Identity Proof
? ? ? ? ?
Residence/Address Proof
? ? ? ? ? ? ? ? ? ?
Passport Pan Card Driving License Voter's ID MAPIN UIN Card
Passport(valid) Voter's ID Driving License(valid) Bank Statement(latest) Telephone Bill(latest) Electricity Bill(latest) Ration Card Flat Maintenance Bill(latest) Insurance Policy(latest) Leave-License/Purchase Agreement(latest)
? 2 Photographs ? 1 Cheque of Rs.500 In Favor of Unicon Securities Pvt. Ltd. ( For UNICON PLUS), Or ? 1 Cheque of Rs.2500/=In Favor of Unicon Securities Pvt. Ltd. (For UNICON SWIFT Account).
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CHAPTER 4
COMPETITORS
There are many comptetitor in stock market . but brifily four major competitor of the unicon. 1. 2. 3. 4. Icici direct . Relince money Indiabulls sherekhan
4.1 Reviews
ICICI SECURITIES
ICICI Direct website (ICICIDirect.com) is an investment portal of ICICI Securities (I-Sec); an integrated securities firm part of famous Mumbai, India based ICICI Group. ICICI Group is India's 2nd largest financial institution and ICICI Bank is No.1 private bank for many years. ICICI Securities is the biggest equity house in India proving online and offline services including investment banking, institutional broking, retail broking, private wealth management, and financial product distribution. ICICIDirect.com is the flagship website of ICICI Securities providing secure and integrated 3-in-1 share trading account. The featured services provided by ICICI Direct includes equity trading in BSE and NSE, Margin Trading, Trading in Derivatives, Mutual Fund investment, Investment in Public Offers (IPO's) through ASBA, General & Life Insurances, Fixed Deposits, Pension Schemes etc. The service which made ICICIDirect top broker for retail investors is the unique 3-in-1 online trading account. This account includes a bank account, a share broker account and a demat account. All transitions between these 3 accounts are seamless and absolutely no manual or paper work involved. For example, when an investors buys a share, a trade is made though though share broker account, money get automatically deducted from the bank account and the shares are transferred to the demat account. Similarly when an investor sells a share through ICICIDirect.com, trade is made by brokerage account, shares are withdrawn from Demat account and money is credited to the bank account which is immediately available for any other transaction including buying groceries or cash withdrawal from ATM.
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Though ICICI charges much higher fees and brokerage, for retail investor who does only few trades a month, a hassle free service is worth paying extra money for it. ICICIDirect Trades In: BSE and NSE ICICIDirect's Trading Platforms ICICIDirect offers 2 trading platforms to its customers: 1. Share Trading Account (Website Based Trading) Website based online Share Trading Account by ICICIDirect is primarily for buying and selling of stocks at BSE and NSE. The ICICIDirect website allows Cash Trading, Margin Trading, MarginPLUS Trading, Spot Trading, Buy Today Sell Tomorrow, IPO Investment, Mutual Fund Investment etc. ICICIDirect.com website is the primary Investment vehicle of ICICI Limited. 2. Trade Racer (Trading Terminal) Trade Racer is a power packed Trading platform which provides an investor with Live streaming quotes & Research Calls, integrated fund transfer system along with multiple watch list facility. Investor can also do technical analysis with the help advance charting tools. Single Order entry page for Equities and Derivatives, Technical Analysis, Integrated Fund Transfer System, Customized Interface, Intraday and EOD Charts and Shortcut keys for faster access to markets are some of the key features of Trade Racer Terminal. ICICIDirect's Trading Brokerage, AMC and Fees
? ? ? ? ? ?
Trading Account Opening Charges (One Time): Rs. 975 Trading Annual maintenance charges (AMC): Rs 0 latest brokerage information on ICICIDirect website. Demat Account Opening Charges (One Time): Rs. 100 (for Agreement Stamp Paper) Demat Account Annual Maintenance Charges (AMC): Rs. 500 (Rs 0/- for 1st year with 3 in 1 Account) Other Demat Service Charges & Fees
ICICI offers 2 types of brokerage plans to its customer: 1. I-Secure Plan (Flat brokerage Plan) This plan offers Flat Brokerage (in %) irrespective of turnover value. This plan is suitable for traders / investors looking at secured and fixed brokerage. 2. I-Saver Plan (Variable brokerage plan)
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This plan offers brokerage based on the trading volume i.e. high brokerage for low volume and low brokerage for high volume trades. This plan suitable for traders / investors who trade in high volumes and can benefit from low brokerage. ICICIDirect Brokerage in Cash I - Saver Plan Effect ive Brok Brok erage erage on (%) Intra day Squa reoff I - Secure Plan Total Effect Eligib ive le Brok Turno Brok erage ver erage on (Per (%) Intra calen day dar Squa Quart reoff er)
Total Eligible Turnover (Per calendar Quarter)
Above Rs. 5 Crores
0.25
Irresp ective 0.125 of 0.55 % turnov er 0.150 % 0.175 % 0.225 % 0.275 % 0.350 %
0.275 %
Rs.2 Crores to 5 Crores
0.30
Rs.1 Crores to 2 Crores
0.35
Rs.50 Lakhs to 1 Crores
0.45
Rs.25 Lakhs to 50 Lakhs
0.55
Rs.10 Lakhs to 25 Lakhs
0.70
0.75 I - Saver Plan / I - Secure Plan
0.375 %
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For Equity/Currency Futures Total Eligible Turnover per month Above Rs. 20 Crores
Equity Future and Future Currency Futures Plus Brokerage on Second leg Brokerage on Second leg of Intraday square off (per of Intraday square off (per lot) lot) Rs.15/Rs.10/-
Brokerage (%)
0.030
Rs.10 Crores to 20 0.035 Crores Rs.5 Crores to 10 Crores Less than Rs.5 Crores 0.040
Rs.15/-
Rs.10/-
Rs.15/-
Rs.10/-
0.050
Rs.15/-
Rs.10/-
Less than Rs.10 Lakhs
ICICIDirect Brokerage in Future & Future Plus ICICI Brokerage in Margin & Margin Plus I - Saver Plan / I - Secure Plan Total Eligible Turnover per month Brokerage (%) Above Rs. 20 Crores Rs.10 Crores to 20 Crores Rs.5 Crores to 10 Crores Less than Rs.5 Crores ICICI Direct Brokerage in Options I - Saver Plan / I - Secure Plan Brokerage in Options Total Eligible Lots per month Flat brokerage per contract lot (Rs.) Brokerage on Second leg of Intraday square off (per lot) 0.030 0.035 0.040 0.050
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Above 600 301-600 151-300 61-150 0-60
65/70/75/85/95/-
Rs.15/Rs.15/Rs.15/Rs.15/Rs.15/-
How to open account with ICICI Securities Pvt Ltd.? For Online Stock Trading with ICICI, investor needs to open 3 accounts...ICICI Bank Account, ICICI Direct Trading Account and ICICI Demat Account (DP Account). Note: If you already have a bank account or demat account with ICICI, you could link it with new ICICIDirect trading account. Opening trading account with ICICI is easy. You could use one of the following options to open account with ICICIDirect.
? ?
Visit ICICIDirect.com and fill the "Open an Account" form. Call ICICI and tell them that you are interested in opening an account with them.
In both the cases ICICI representative contact you in a day or two and tell you about the procedure to open the account. They usually send somebody to your home to collect documents, signature and for demo if required.
ICICIDirect Advantages 1. 3-in-1 account integrates your banking, broking and demat accounts. All accounts are from ICICI and very well integrated. This feature makes ICICI the most interesting player in online trading facility. There is absolutely no manual interfere require. This is truly online trading environment. 2. Unlike most of the online trading companies in India which require transferring money to the broker's pool or towards deposits, at ICICIDirect you can manage your own demat and bank accounts through ICICIdirect.com. Money from selling stock is available in ICICI bank account as soon as the ICICIDirect receive it. 3. Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes all from one website. General Insurance is also available from ICICI Lombard. 4. Trading is available in both BSE and NSE. 5. Low bandwidth website is available for slow internet connection or for trading from mobile devices. 6. Through myGTC feature, you can place buy and sell limit orders in equity scrips of your choice specifying the period for which you want the order instruction to be valid.
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ICICIDirect Disadvantages 1. ICICIDirect brokerage is high and not negotiable. 2. With ICICIdirect.com e-Invest account(3-IN-1 concept), the Demat Account has to be opened with ICICI Bank Ltd as the Depository Participant (DP) and the Bank Account has to be opened with ICICI Bank Ltd. as the Banker.
Distinguishing Features of ICICIDirect: 1. 3-1 account offers great flexibility and worry free transaction between Bank Account, Demat Account and Share Broker Account. Also the website (ICICIDirect.com) has wide ranges of investment products available. This makes investing easy. 2. "myGTC Orders" is a unique and a very useful feature offered by ICICIDirect. Using this facility, when placing a buy/sell order, a share trader can specify the date until when the order will be valid. GTC is short form of 'Good Till Cancel'. For example – You can place an order to buy Reliance Industries shares at Rs 700 (say current market price is Rs 750) and keep the myGTC date, say, one month from now. In this case you order will be valid for next one month at Rs 700. If the share reaches at this price in next one month, the order will automatically execute. It's a hassle free service which helps a lot to many of the investors who has a price in mind and do not want to miss the opportunity to buy/sell share when it reaches to that price. ? 4.2 RELINCE MONEY REVIEWS
Reliance Money, A Reliance Capital Limited Company, is the financial services division of Reliance Anil Dhirubhai Ambani (ADA) Group. Reliance ADA group is among top 3 business houses in India with wide range of presence across various sectors. Group's major interests ranges from communications (Reliance Communications) and financial services (Reliance Capital Ltd), to generation, transmission and distribution of power (Reliance Energy), infrastructure and entertainment. Reliance Money has over 22 lakhs customers and more then 10'000 branches in around 5000 cities in India. Company is among the largest broking and distribution house of financial products and having share of more then 3% of total stock market volume at BSE & NSE. RelianceMoney.com is the web based investment portal (with Online Stock Trading) from Reliance Money. This website enables its customer to invest & manage most of the services provided by Reliance Money including Equity (Stock) Trading, Commodity Trading, Derivatives, Mutual Fund Investment, IPO Investment, Life Insurances, General insurances, Money Transfer, Forex exchange, Gold Coins and Credit Cards Services. Company recently entered in to Wealth Management with tools like investment in equity-linked portfolio management services, structured products, insurance and mutual funds.
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The Reliance Money stock trading websites uses special security features 'Security Token', which makes your online trading experience more secure without complexity. Trade In: BSE and NSE Investment Options The investment options available with Reliance Money online portal are as below: 1. 2. 3. 4. 5. Equity (Stock) Trading at BSE, NSE and NSE F&O IPO Investment Derivatives Trading Forex Trading Commodity Trading(Gold, Silver, Crude etc....) at MCX, NCDEX and NMCE (FAQ's) 6. Mutual Fund Investment 7. Life & General Insurance 8. 'Pure Swiss' Gold Coins (99.99% pure, 24 carat) Reliance Money's Trading Platforms Reliance Money provides 3 different trading platforms for equity trading: 1. Easy Trade Easy Trade ia a browser based platform for first time investors. 2. Insta Plus Insta Plus is a web browser based trading system for those who are very frequent traders & who seek to take benefit out of short-term price movement. This gives real time market data for BSE as well as NSE. 3. Insta Xpress Insta Xpress ia an EXE/Desktop based platform for Active traders and dealers. It provides Integrated funds transfer facility which allows to transfer the funds seamlessly through 24 Banks. Reliance Money Technical Analysis (A paid service) Relance Money offers a simplified, automated, sophisticated technical analysis to Indian retail broking consumers with the help of Recognia's Technical Analysis tools. Recognia, a Canada based company, has proprietary pattern recognition technology capable of recognizing patterns in the price charts of any publicly traded financial instrument including stocks, bonds, funds, commodities, currencies and indexes. The technical services are available for introductory free 7-day trail period to Reliance Money users. Post the trail period, this service is available to users at a nominal subscription of Rs. 99 for 3 months/ Rs. 179 for 6 months/ Rs. 299 for a year, i.e., less than Re 1 a day.
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Reliance Money's Trading Brokerage, AMC and Fees Reliance Money offers lowest brokerage rates in today's online stock trading industry in India. The brokerages are as low as 0.075% for delivery based trading and 0.02 for now delivery. For more detail about Reliance Money‘s brokerage and fees visit the below section of this webpage.
Fee Head Annual Services Charges - For Individuals / HUFs / Trust Annual Services Charges - For NRIs / Foreign Nationals, Corporates / Others Transaction Charges - SELL (Market & Off Market) For instructions given in physical form. Transaction Charges - SELL (Market & Off Market) For instructions received through Internet/ online trading through Reliance Securities Ltd. Reliance Money Demat Account Charges:
DP Charges Rs. 50/Rs. 1000/Rs. 25/-
Rs. 12/-
Note: The brokerage & fees on this webpage may not accurate, please contact your nearest Reliance Money broker for latest available information. Also check rates of Securities Transaction Tax Reliance Money Advantages 1. Extra security features with 'Security Token'', which is the most secure and tested technology in computer world. 2. Simple, easy and fast online stock trading. 3. Almost all investment options are available under one account including Equity Trading, Derivatives, Forex, Commodity, IPO, Mutual Funds and Insurance. 4. Branches are available in all major cities and the number is growing.
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Benefits of having a Reliance Money account: 1. 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. 500/- and transact through Reliance Money. This fee is valid for two months or a specified transaction value*. See the table for details. Validity (wichever is earlier) Turnover limit Access Fee (Rs.) 500 1350 2500 Time Validity 2 months 6 months 12 months Turnover Validity Rs. l Cr. Rs. 3 Cr. Rs. 6 Cr. Non-delivery turnover Rs. 90 Lac Rs. 2.7 Cr. Rs. 5.4 Cr. Delivery turnover Rs. 10 Lac Rs. 30 Lac Rs. 60 Lac
2. It offers Single Window Access to almost all financial products. 3. Its Convenient - Reliance Money's services are through the Internet, Transaction Kiosks and over the phone. 4. It's Safe Accounts are safe guarded with a unique security number that changes every 32 seconds. This number works as a dynamic password to keep your account extra safe. 5. It provides you a 3...in...l facility of Banking, Trading and Demat Account through a single window and transfer funds across accounts seamlessly
4.3
Indiabulls Securities (ISL) is one of the India's capital markets companies providing securities broking and advisory services. Indiabulls Securities is promoted by Indiabulls Group, is one of the country's leading business houses with business interests in Power, Financial Services, Real Estate and Infrastructure.
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Indiabulls Securities also provides depository services, equity research services and IPO distribution to its clients. Company also offers commodities trading through a separate company. These services are provided both through on-line and off-line distribution channels. Indiabulls Securities has been assigned the highest rating BQ-1 by CRISIL. Trade In: BSE and NSE
Indiabulls Securities's Trading Platforms Power Indiabulls (PIB): Power Indiabulls (PIB) is the integrated online trading platform with great speed to invest in Equity, F&O and Commodities. Power Indiabulls main features includes real-time stock prices, Live trading reports, Multiple Market watch, Intraday charting, Technical analysis, Price alerts, News Room for seasoned investors and traders. Power Indiabulls (PIB) is a dedicated desktop (PC based) application, developed specially for active traders. It also provides various kinds of trading reports according to the internet trading users needs. Main features Power Indiabulls terminal are: 1. 2. 3. 4. 5. Live Streaming Quotes and News User can create multiple market watch Instant Trade Confirmation User can set customizable alerts on various scrip-based parameters Value added tools like Financial Calculator, Intraday Charting, Technical Analysis etc. 6. Real time updated reports 7. Multiple Order Books Click here to find more detail about Power Indiabulls trading platform Indiabulls Securities's Trading Brokerage, AMC and Fees
? ? ? ?
Trading Account Opening Charges (One Time): Rs. 750 Trading Annual maintenance charges (AMC): Demat Account Opening Charges (One Time): Demat Account Annual Maintenance Charges (AMC): Rs. 500
List of documents required to open an acount 1. Proof of Identity – Copy of PAN Card 2. Proof of Address – Copy of any one of the following (Self Attested) o Passport o Ration card o Voter‘s ID o Driving license o Electricity bill (not more than 2 months old) o Landline Telephone Bill (not more than 2 months old) o Bank Pass Book
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3. Bank Proof – Copy of Bank Pass Book or Personalized Cheque leaf (For Existing Bank Account Holders Only) 4. 3 Photographs
Indiabulls Securities Advantages 1. Brokerage is less compare to other online trading companies. 2. Provide trading terminal 'Power Indiabulls', which is very fast in terms of speed and execution. 3. Indiabulls Securities also provides Mobile Power Indiabulls (MPIB) trading platform. This application allows the client to view live streaming quotes, trade in equities as well as derivatives segment, view trading reports and account details on their Mobile 4.
4.4
Reviews
Sharekhan is online stock trading company of SSKI Group, provider of India-based investment banking and corporate finance service. Sharekhan is one of the largest stock broking houses in the country. Sharekhan's equity related services include trade execution on BSE, NSE, Derivatives,Commodities, Depository Services, Online Trading and Investment Advice. Along with Sharekhan.com website, ShareKhan has 1700 'Share Shops' in 550 cities and serving more than 10,00,000 customers across the nation. It also has international presence through its branches in the UAE. Sharekhan launched online trading portal in 2000, providing fundamental and statistical information across equity, mutual funds and IPOs. Sharekhan offers its services to all types of customers- individual investors and traders, corporate, institutional and NRI's; trade execution facilities for cash as well as derivatives, on BSE and NSE, depository services, mutual funds, initial public offerings (IPOs), commodities trading on MCX and NCDEX and currency trading facilities on NSE, USE & MCX-SX. Sharekhan provides market related news, stock quotes fundamental and statistical information across equity, mutual funds, IPOs and much more. Trade In: BSE and NSE
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Account Types 1. Classic account Allow investor to buy and sell stocks online along with the following features like multiple watch lists, Integrated Banking, demat and digital contracts, Real-time portfolio tracking with price alerts and Instant credit & transfer. a. Online trading account for investing in Equities and Derivatives b. Free trading through Phone (Dial-n-Trade) I. Two dedicated numbers for placing your orders with your cellphone or landline. II. Automtic funds tranfer with phone banking (for Citibank and HDFC bank customers) III. Simple and Secure Interactive Voice Response based system for authentication IV. get the trusted, professional advice of our telebrokers V. After hours order placement facility between 8.00 am and 9.30 am c. Integration of: Online trading + Bank + Demat account d. Instant cash transfer facility against purchase & sale of shares e. IPO investments f. Instant order and trade confirmations by e-mail g. Single screen interface for cash and derivatives 2. Trade Tiger account This is a net based executable application for active traders who trade frequently during the day's trading session. Following are few popular features of Trade Tiger account. a. A single platform for multiple exchange BSE & NSE (Cash & F&O), MCX, NCDEX b. Multiple Market Watch available on Single Screen c. Hot keys similar to a traditional broker terminal d. Tie-up with 12 banks for online transfer of funds e. Different tools available to gauge market such as Tick Query, Ticker, Market Summary, Action Watch, Option Premium Calculator, Span Calculator f. Graph Studies are available including Average, Band- Bollinger, Know SureThing, MACD, RSI, etc Sharekhan's Trading Brokerage, AMC and Fees Account Opening Fees & Annual maintenance charges (AMC)
? ? ? ?
Trading Account Opening Charges (One Time): Rs 750 (Classic Account), Rs 1000 (Trade Tiger Account) Trading Annual maintenance charges (AMC): Demat Account Opening Charges (One Time): Demat Account Annual Maintenance Charges (AMC): Rs. 400 (Free for 1st year with trading account.)
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Trading Brokerages
? ? ? ?
Intra-day Trades: 0.1% on the buy side and 0.1% on the sell side. Delivery Based Trades: 0.5% or 10 paise per share or Rs. 16/- per scrip whichever is higher. F&O Trades: 0.1% on the first leg and 0.02% on the second leg if squared off on the same day and 0.1% if squared off on any other day. Options Trades: Rs. 100/- per contract or 2.5% on the premium (which ever is higher).
Sharekhan Advantages 1. Sharekhan offer different brokerage slabs to customers which offer reduced brokerage rates if you opt for our Prepaid Brokerage schemes depending on the volumes of trades done by you. 2. Sharekhan has ventured into trader education with US-based Online Training Academy - one of the leading organizations in trading and investment education globally. 3. Sharekhan has got a tie-up with 12 banks for online transfer of funds. These banks are HDFC, Citibank, IDBI Bank, Axis Bank, OBC, UBI, INDUSIND Bank, Yes bank, ICICI bank, Bank of India, DEUTSCHE Bank and Federal Bank. This means that if you are having a bank account with any of these banks, you can link it with your Sharekhan trading account which will enable you to place an online request for transfer and withdrawal of funds. 4. Trade upto four times of your available balance in your trading account. 5. No DP charges for shares purchased and sold by you via your Sharekhan account. Sharekhan Disadvantages 1. They charge minimum brokerage of 10 paisa per stock would not let you trade stocks below 20 rs. (If you trade, you will loose majority of your money in brokerage). 2. Lots of hidden rules and charges. 3. They do not provide facility to book limit order trades during after-hours. 4. Classic account holders cannot trade commodities. 5. Cannot purchase mutual funds online
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Comparison Table of Brokerage Charges in Here you will find a table comparing intraday brokerage charges and delivery brokerage charges charged by different online brokers in India : Sharekhan, ICICIdirect, Indiabulls, Reliance Money. I constantly try to update this table and try to keep it upto date.
Online Broker
Brokerage for Delivery
Brokerage for Intraday trading
MMC*
Unicon securities Sharekhan brokerage charges ICICI direct brokerage charges Indiabulls brokerage charges 0.03% - 0.50% 0.03% - 0.10%
NIL NIL
0.75%
0.15%
0.25% - 0.50%
0.05% - 0.10%
Reliance Money brokerage charges
0.01%
0.01%
card system
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CHAPTER 5
1. DEMAT DEFFINATION The term "demat", in India, refers to a dematerialized account for individual Indian citizens to trade in listed fsfv fdf stocks or debentures in electronic form rather than paper, as required for investors by the Securities and Exchange Board of India (SEBI). In a demat account, shares and securities are held electronically instead of the investor taking physical possession of certificates. A demat account is opened by the investor while registering with an investment broker (or sub-broker). The demat account number is quoted for all transactions to enable electronic settlements of trades to take place. Access to the demat account requires an internet password and a transaction password. Transfers or purchases of securities can then be initiated. Purchases and sales of securities on the demat account are automatically made once transactions are confirmed and completed
Demat Trading
Instead of signing the transfer deed as seller and delivering share certificates to a broker, you shall give your DP debit instruction when you sell your shares in the electronic form. You can trade through any broker of your choice registered with the stock exchanges connected with NSDL but will have to provide the details of your account with the DP. The money would be received from the broker/ paid to the broker in the same fashion as done in case of buying/ selling of physical shares. The DP will provide you a statement updated every fortnight giving details of your holdings. Shares bought in the electronic form can be pledged/ hypothecated by making application to the DP in the prescribed form. For the purpose of calculation of capital gains tax, the cost of acquisition of shares would be determined on the principle of first in first out. The process of opening an account with a DP is similar to the opening of bank account. Photograph, Introduction and signing the prescribed agreement form are some of the requirements. If there are any discrepancies in your holdings statement or pass book entries, you can contact your DP. If the problem cannot be resolved at DP end, you can approach NSDL. There is absolutely no restriction to the number od DPs you can open accounts with. Just as you can have savings or current accounts with more than one bank, you can open accounts with more than one DP. There is no minimum balance required for your account with DP. In fact you could have nil sesurity in your account. What's the security that a person have with respect to proof of his holdings? Upon opening an
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account with DP, you sign an agreement where the DP indemnifies you for any misuse of your holdings. When any company announces right, bonus or dividend for a particular security, the DP will give details of the clients having electronic holdings of that security as of record date/ book closure to the registrar. The registrar will then calculate the benefits due to all shareholders. The disbursement of cash benefits like dividend or interest will be done by the registrar whereas distribution of securities entitlements will be done by the DP based on information provided by the registrar. you will have to contact the registrar directly. s,
? Demat Process A request form together with the share certificates desired to be dematerialised is given to the DP. He sends the request along with the share certificates to the company/ registrars through NSDL for confirmation of its genuineness. After checking the records, the registrar will destroy the certificates and sends confirmation of dematerialisation to NSDL. NSDL then confirms the dematerialisation of shares to your DP to credit the holding of shares in your account electronically. This takes about 15 days from the date of request. Electronic holdings can be converted back into certificates, if so desired, in a similar fashion as that for dematrialisation. ? 5.2
Demat benefits
The benefits of demat are follows:
? ? ? ? ? ? ? ?
? ? ? ?
Easy and convenient way to hold securities Immediate transfer of securities No stamp duty on transfer of securities Safer than paper-shares (earlier risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc. are mostly eliminated) Reduced paperwork for transfer of securities Reduced transaction cost No "odd lot" problem: even one share can be sold Change in address recorded with a DP 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 the need for notifying companies. Automatic credit into demat account for shares arising out of bonus/split, consolidation/merger, etc. A single demat account can hold investments in both equity and debt instruments. Traders can work from anywhere (e.g. even from home).
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Benefit to the companyThe 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 a company. It provides better facilities for communication and timely service to shareholders and investors. ? Benefit to the investor 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 or bad delivery. It increases overall trading and profitability. It increases confidence in their investors. Depository Participant (DP) Main article: Depository participant A depository (in simple terms) is an institution holding a pool of pre-verified shares held in electronic mode that offers efficient settlement of transactions. A Depository Participant (DP) is an intermediary between the investor and the depository. A DP is typically a financial organization like a bank, broker, financial institution, or custodian acting as an agent of the depository to make its services available to the investors. Each DP is assigned a unique identification number known as DP-ID. As of March 2006, there were a total of 538 DPs registered with SEBI. Demat conversion Converting physical records of investments into electronic records is called "dematerialising" of securities. In order to dematerialise physical securities, investors must fill in a Demat Request Form (DRF), which is available with the DP and submit the same along with physical certificates. Every security has an ISIN (International Securities Identification Number). A separate DRF must be filled for each ISIN. The complete process of dematerialisation is outlined below:
? ?
The investor surrenders the certificates for dematerialisation to the DP. DP updates the account of the investor.
Demat options There are many hundreds of Depository Participants (DPs) offering the Demat account facility in India as of September 2011. A comparison of the fees charged by different DPs is detailed below.
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There are a few distinct advantages of having a bank as a DP. Having a Demat account with a bank DP, usually provides quick processing, accessibility, convenience, and online transaction capability to the investor. Generally, banks credit the Demat account with shares in case of purchase, or credit a savings account with the proceeds of a sale, on the third day. Banks are also advantageous because of the number of branches they have. Some banks give the option of opening a demat account in any branch, while others restrict themselves to a select set of branches. Some private banks also provide online access to the demat account. Hence, the investors can conveniently check online details of their holdings, transactions and status of requests through their bank's net-banking facility. A broker who acts as a DP may not be able to provide these services. Fees involved There are four major charges usually levied on a demat account: account opening fee, annual maintenance fee, custodian fee and transaction fee. Charges for all fees vary from DP to DP. Account-opening fee Depending on the DP, there may or may not be an opening account fee. Private banks, such as HDFC Bank and AXIS Bank, do not have one. However, players such as ICICI Bank, Globe Capital, Karvy Consultants, Bajaj Capital Limited and State Bank of India do impose an opening fee. Most players levy this when re-opening a demat account. However, the Stock Holding Corporation offers a lifetime account opening fee, which allows the investor to hold on to his/her demat account for a long period. The fee is also refundable.
Annual maintenance fee This is also known as folio maintenance charges, and is generally levied in advance... Custodian fee This fee is charged monthly and depends on the number of securities (i.e. ISINs) held in the account. It generally ranges between Rs 0.5 to Rs 1 per ISIN per month. DPs will not charge a custody fee for an ISIN on which the companies have paid one-time custody charges to the depository. Transaction fee The transaction fee is charged for crediting/debiting securities to and from the account on a monthly basis. While some DPs, such as SBI, charge a flat fee per transaction, HDFC Bank and ICICI Bank peg the fee to the transaction value, which is subject to a minimum amount. The fee also differs based on the kind of transaction (buying or selling). Some DPs charge only for debiting the securities, while others charge for both. Some DPs also charge the investor even if the instruction to buy/sell fails or is rejected. In addition, service tax is also charged by the DPs.
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In addition to the other fees, the DP also charges a fee for converting the shares from the physical to the electronic form or vice-versa. This fee varies for both demat (physical-toelectronic) and remat (electronic-to-physical) requests. For demat transactions, some DPs charge a flat fee per request in addition to the variable fee per certificate, while others charge only the variable fee. For instance, Stock Holding Corporation has charged Rs 25 as the request fee and Rs 3 per certificate as the variable fee. However, SBI has charged only the variable fee, as Rs 3 per certificate. Remat requests also have charges akin to that of demat. However, variable charges for remat are generally higher than demat.
Indian Banking System 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. An investor must have his/her PAN card in original at the time of opening of the account (mandate effective from April 1, 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 the 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 BOID (Beneficiary Owner Identification number). The DP may revise the charges by giving 30 days notice in advance. SEBI has rationalised the cost structure for dematerialisation 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 9, 2005 advised that with effect from January 9, 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.[1] 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. 5.2 Disadvantages of Demat
? ?
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 By-Laws of various depositories.
?
?
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?
Agreements are entered at various levels in the process of dematerialization. These may cause anxiety to the investor desirous of simplicity.
? Transfer of shares between DPs To transfer shares, an investor has to fill one of two kinds of Depository Instruction Slip (DIS). The first check made is whether both Demat accounts are at the same depository. There are two depositories: (CDSL (Central Depository Securities Limited) and NSDL (National Securities Depository Limited)). If both demat accounts are not at the same depository, then an Inter Depository Slip (Inter DIS) has to be filled and submitted. Otherwise, an Intra Depository Slip (Intra DIS) has to be filled and submitted. For example:
?
? ? ?
If there is one Demat account with CDSL and the other Demat account with NSDL, then an Inter-DIS is needed. (In case the investor needs an Intra-DIS, the investor should check with the broker, since brokers usually issue an Intra-DIS). Now that the correct DIS has been determined, information pertaining to the transfer transaction has to be entered: scrip name, INE number, quantity in words and figures. Finally, the investor should submit that DIS to the broker with signatures. The transfer broker shall accept that DIS in duplicate and acknowledge receipt of DIS on duplicate copy.
The investor should submit the DIS when the market is open. Accordingly, date of submission of DIS and date of execution of DIS can be same or a difference of one day is also acceptable. The investor also has to pay the broker some charges for the transfer. ? Security recommendations A Depository Instruction Slip (DIS) is almost like a cheque book, so it can be misused if issued blank. Hence, an investor should exercise sufficient caution while issuing a DIS slip. For example: an investor should deposit only a completely filled-in slip to the broker. Unfilled rows should be cancelled out so that they cannot be tampered with.
What is a depository? A depository is an organisation where share certificates of a shareholder are held in electronic form. This is done at the request of the shareholder through a depository participant (DP). If an investor wants to use services offered by a depository, he/she has to open an account with the depository through a DP - more about him later - much like opening an account with any branch of a bank to utilise its services. In fact, in many ways, a depository is similar to a bank.
Who is this DP ? A DP is your representative in the depository system. Your DP will maintain your securities account balances and intimate to you the status of your holdings from time to time.
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According to Sebi guidelines, financial institutions, banks, custodians, stock brokers etc., can become DP's. Why should investor buy/sell shares in the depository mode ? Currently, it takes an investor two and three months to get shares registered in his name. Besides, chances of shares being lost or stolen during transit are real. But when you buy shares which are already in the depository mode, you become the owner of those shares in the depository within a day of the settlement being completed. You don't have to apply to the company to register the shares in your name. The possibility of loss or theft when certificates are posted to the company is eliminated. Will there be a charge for the opening of an account or for every transaction ? There will be reasonable charges for the opening of accounts and also for every transaction in the accounts. The depository will publish its charges and the DPs will also have to make their charges known to the market. Thirty three DPs (names can be got from www.nsdl.com) are offering investors various incentives - including not charging them anything for opening an account if they sign up before January 4, 1999. How will I know that my DP has updated my account after each transaction ? Just like a bank, the DP will give you a passbook or a statement of holdings. The statement of holdings will be deposited to you periodically by the DP. However, the statement of holdings can be sent to you as and when you request it.
What happens if I lose my holdings-statement or depository passbook ? Simple. Inform your DP and obtain a duplicate holdings statement or depository passbook. Your holdings statement or passbook cannot be used by anybody else for trading in your account. Who will give me the benefits arising out of my holdings, say a bonus or dividend ? When any company announces rights, bonus or dividend, the depository will give all details of the clients having electronic holdings of that security as the corporate benefits due to all the shareholders. The disbursement of cash benefits such as dividend/interest will be done by the registrar whereas the distribution of securities entitlements (in case of rights or bonus issue) will be done by the depository based on the information provided by the registrar. Can electronic holdings be converted back into certificates ? Yes. If you wish to get back your securities in the physical form all you have to do is to request your DP for the rematerialisation of the same. Rematerialisation is the term used for converting electronic holdings back into certificates. Your DP will forward your request to the depository after verifying that you have the necessary security balances. The depository will in turn intimate the registrar who will print the certificates and dispatch them to you.
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CHAPTER 6 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 ?advance learner ?s 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.
6.1 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.
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6.1
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)
TOOLS OF ANALYSIS
In the project work quantitative technique & percentage method are has been used.
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CHAPTER 7 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 100 population was assumed to be representing entire population was interested .Demographic factor like age, income and educational background was used for the classification purpose .
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7.1
DATA ANALYSIS AND INTERPRETATION
Q1. In which of these Financial Instruments do you invest into? Financial Instrument Mutual Fund & insurance Bond Online trading Derivative Percentage of respondent 75% 16% 7% 2%
Percentage of respondent
Mutual Fund & insurance Bond Online trading Derivative
Figure 1 Result of Preference of Investment
Interpretation: This shows that although the mutual funds& insurance 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.
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Q2. Are you aware of online Share trading?
Aware of online share trading Yes No
Percentage of respondent 72% 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.
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Q3. Heard about unicon securities ?
Awareness of unicon Broking Yes No
Percentage of respondent 35% 65%
Result of Awareness of unicon scecurities
35%
yes 65% no
Interpretation: This interpretation shows that 65% respondants are not aware of UNICON securities only 35% are aware about this security..
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Q4. Do you know about the facilities provided by unicon stock Broking?
Awareness of unicon stock Broking Services Yes No
Percentage of respondent 36% 64%
Awareness of unicon Facilities
36%
yes 64% No
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.
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Q .5 Are you satisfied with the company ?
Company Name Unicon ICICI Sherkhan
Percentage of respondent 12 20 15
20 18 16 14 12 10 8 6 4 2 0 unicon ICICI sherkhan
Interpretation:30% have respondent of unicon securities , 30% have respondent of sherkhan, 40% have respondent of ICICI.
Q.6 Which broking company Demat account offered you a large no. of services?
Company Name Unicon
Percentage of respondent 12
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sherkhan ICICI
15 20
20 18 16 14 12 10 8 6 4 2 0 unicon sherkhan ICICI 4th Qtr
INTERPRETATION: 20% have respondent of unicon , 36% have respondent of HDFC, 44% have respondent of ICICI.
Q.8 Which company provide a less BROKARAGE rate ?
Company Name Unicon Sherkhan ICICI
Percentage of respondent 22 11 17
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25 20 15 10 5 0 unicon sherkhan ICICI 4th Qtr
INTERPRTETATION: 44% have respondent of unicon , 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 Unicon HDFC ICICI
Percentage of respondent 22 10 18
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18 16 14 12 10 8
6
4 2 0
unicon
sherkhan
ICICI
INTERPRETATION:22% have respondent of unicon securities Ltd., 20% have respondent of sherkhan, 36% have respondent of ICICI.
Represent a pie char
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USER OF DEMAT ACCOUNT
ICICI SHERKHAN UNICON
28% 41%
31%
OBSERVATION To study the sales and distribution management and improve the Customer Acquisition Process by anal yzing the consumer behavior, response and mindset towards the product and services the company offers.
1.
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Preference of Investment:
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Consumers want to invest 75% in Insurance 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. 4. 5.
Awareness of unicon 48% consumers are know about unicon and 52% consumers are not know about unicon Awareness about facilities provided by unicon securities : 36% consumers are aware about the facilities provided by unicon securities and 64% consumers are not know about the facilities provided by unicon. Availability of Bank 30% have respondent of unicon securities Ltd, 30% have respondent of sherkhan , 40% have respondent of ICICI. Which broking Demat account offered you a large no. of services? 15% have respondent of unicon securitites Ltd., 20% have respondent of sherkhan , 36% have respondent of ICICI. Provide a less BROKARAGE rate 44% have respondent of unicon securitites Ltd., 22% have respondent of sherkhan, 34% have respondent of ICICI. Provide a large no. of Products and services 44% have respondent of unicon securities Ltd., 20% have respondent of HDFC, 36% have respondent of ICICI.
6.
7.
8.
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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.
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SUGGESTION
1. The unicon securities pvt Ltd. Have good image 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 .ex- many social wib site
Facebok ,google ,yahoo etc 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 account . 5. For opening an account they require lots of signatures in a kit, which should be reduced.
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SUMMARY
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.
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CONCLUSION
Demat account is way to enter in the stock market . Unicon securities. 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 unicon securities is still growing industry in India Unicon account have less brokerage rate ,and provide the batter product and service . They will be better
It provide a security with the use of special type of key .
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BIBLIOGRAPHY
Websites:
www.unicon.com www.sherkhan.com www.icicidirect.com www.demataccount.com www.google.com
Reference books:
1. FINANCIAL INSTITUTIONS AND MARKETS 2.INVESTMENT MANAGEMENT
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ANNEEXURE
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QUESTIONNAIRE Name : Contect no : Gender : male female E-mail :
What is your age? 15-25 25-45 45-65 above 65
Which company you have account?
.....................................................................................
Since when are you trading in the share market? Less then 1 yr 1-3 yrs 4-6 yrs more then 6yrs
What type of trading do u prefer? Interaday delivery both
What is the brokerage charged? 0.3 - .30 paisa 0.2 - .20 paisa 01 -.10 paisa more then 03-.30 -paisa
What interest you in share market ? More some time free time not interest
What are the reasons for operating with the stared company ? ................................................................................................................................................ Are you satisfied with the company ? yes no
are you satisfied with the investment tips ? yes no ether satisfied or not satisfied
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costumer ? ............................................................................................................................................. xi) Have you switched from one firm to another? If yes then reasons and whichcompany have you switched to? …………………………………………………………………………………… xii) What are the different attributes that the client looks forward for a brokerage house?………………………………………………………………………………… .xiii) What were the areas where the MOST could not meet the client‘s expectation level? )Brokerage fees b)Services c)Research & advices d)Complaints handling e)Produ
Information and knowledge provided by ?Mr sachin gupta (branch manger Manager) and other Dealers. Data collected from Relationship Managers of other brokerage houses. • Data collected from present client and people interested in stock market.\
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PROCEDURE:-
The procedure to be followed is a simple four-step plan, which is as followed: -
STEP 1:-Firstly, to understand the products of other companies it is essential to understand the products and policies of unicon. Therefore, first a detail study of various products being offered by unicon is to carried on
.STEP 2:-After studying the working of a brokerage house and various products of unicon,a list of various houses to be visited was prepared and then the data collecting procedure was started by personally visiting these 16 houses as a customer and meeting the RM.
STEP 3:-After collecting and analyzing the data, a questionnaire is to be designed, keeping inmind various aspect to be covered. Then a set of customer and investors is to be targeted for the survey followed by the procedure of the survey.
STEP 4:-Lastly, all the data is to be reconciled and the result is to be drawn, preparing all there port and the presentation, it is to be submitted to the company and faculty guide.
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doc_338132161.docx