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Investors awareness Investors awareness regarding regarding
Depository in IndiaDepository in India
Taranjeet kaurMBA3rd1272395
Introduction of Stock Introduction of Stock exchangeexchange
A stock exchange is a place or a market where securities, shares, debentures, bonds, mutual funds of Joint Stock Company, central and state government organizations, local bodies and foreign government are bought and sold. S - Securities provide for investor. T - Tax Benefits planning and exemption. O - Optimum return on investment. C - Cautious Approach. K - Knowledge of Market
Ex - Exchange of Securities Transacted.C - Cyclopedia of Listed Companies.H - High Yield.A - Authentic InformationN - New Entrepreneur encouraged.G - Guidance of Investor & Company.E - Equity
LSE
• The Ludhiana Stock Exchange Limited was established in 1981, by Sh. S.P. Oswal of Vardhman Group and Sh. B.M. Lal Munjal of Hero Group.
• The vision and mission of stock Exchange is:Vision “Reaching small investors by providing services relating to Capital market including
Trading Depository operations etc and creating mass awareness by way of education and training in the field of Capital market.”
Mission “To create educated investors and fulfilling the gap of skilled work force in the
domain in Capital Market.”
Profile of LSE Securities Ltd• LSE Securities Ltd., was incorporated in January, 2000 with a view to revive the
capital market in the region and for taking full advantage of the emerging opportunities being provided by expansion of bigger stock exchanges like NSE and BSE.
• LSE Securities Limited is a subsidiary of the Ludhiana Stock Exchange, which was formed with an objective to enhance business and investment opportunities for the investors and members of Ludhiana Stock Exchange at large, through innovative products by encompassing a variety of activities related to the capital market.
Constituents of a DP Constituents of a DP SystemSystem
• DEPOSITORIES• DEPOSITORY PARTICIPANTS• ISSUER OF SHARES OR COMPANY• REGISTRAR AND TRANSFER AGENT• CLEARING CORPORATION/ CLEARING MEMBER• STOCK BROKERS• INVESTORS
DEPOSITORYDEPOSITORY
• The Depository Act defines "Depository is an organization where securities of a shareholder are held in the form of electronic accounts, in the same way as bank holds money".
• A “Depository” is a provider of facility for holding securities .
• It is a kind of bank for securities like shares, debentures, bonds, etc.
DEPOSITORYDEPOSITORY
Holds securities in accounts• Transfers securities between accounts• Transfers without handling physical securities• Safekeeping of securities
DEPOSITORY IN INDIADEPOSITORY IN INDIA
• National Securities Depository Ltd. – NSDL
Central Depository Services Ltd. – CDSL
Depository Participant• A Depository Participant (DP) is the representative (agent) of the
investor in the depository system.• Interface between depository and investor• Regulated by SEBI• Should have minimum Net Worth of Rs. 1crore
Issuers & Issuers & RTARTA
• An Issuer of share is the company which had launched its shares in the market via IPO
o RTA are appointed by Issuer companies to act on their behalf.
o RTA is a trust company, bank or similar financial institution assigned by a corporation to maintain records of investors and account balances and transactions, to cancel and issue certificates, to process investor mailings and to deal with any associated problems.
Clearing corporation/ clearing Clearing corporation/ clearing membermember
o A clearing corporation is an independent central organisation created to facilitate efficient, fast and economical settlement of transactions at SE.
o It acts as a central mechanism for consolidating and settling transactions instead of the member firms settling each trade individually amongst themselves.
o The members of Clearing Corporation are called as clearing members.
o Eg: All trades done at NSE are settled through National Securities Clearing Corporation Limited (NSCCL)
Stock exchanges/stock Stock exchanges/stock brokersbrokers
o Stock Exchange (SE) is an organised market for dealings in securities commonly referred as secondary market. One of its main functions is price discovery i.e to cause prices to reflect currently available information about a security.
o Stock Brokers (SB) are members of SE primarily engaged in 2 main activities i.e buy and sell securities for their clients charging a commission and as dealers or traders they buy and sell on their own account for trading gains.
InvestorsInvestors
o May be individuals or corporate who have acquired shares either in primary market or in secondary market
Objective of the studyObjective of the study
1. To understand the basic concept of depository.
2. To Know the awareness of people regarding Stock exchange.
3. To know that how many people in the city are aware of the depository system & invest in share market.
4. To know the where people have already opened their demat account and on what basis.
RESEARCH METHODOLOGYRESEARCH METHODOLOGY
Analysis and Interpretation Analysis and Interpretation of the Dataof the Data
• The collected data were not easily understandable, so I like to analyze the collected data in a systematic manner and interpreted with simple method. The analysis and interpretation of the data involves the analyzing of the collected data and interpretation it with pictorial representation such as bar charts, pie charts and others.
GenderGenderGender play vital role in investment decisions. Gender classified on sex Basis i.e. male and female. Gender classification is requiring to marketer because different gender exhibit different perception . •
From the above table we conclude that , the majority of the respondents belong to the male group.
Gender No of respondents %
Male 70 70Female 30 30
Total 100 10070%
30%
no of respondents
malefemale
OccupationOccupation• Occupation is also influences a person’s investment
pattern. Business men will more invest in underlying securities, rather than other .
Occupation No of respondents
Business 60Employees 20House wives 00Student 20
Total 100
AGEAGE
Age No of respondents
18-24 20
25-30 30
Above 30 50
Total 100
Knowledge about stock Knowledge about stock exchange exchange
response Respondents
Yes 76
No 24
Total 100
yes
nototal
respondents
Have you ever invested in Have you ever invested in share marketshare market
Response Respondents
Yes 60
No 40
total 100 0 100 200
yes
no
total
respondents
How long you have been How long you have been transacting in the stock transacting in the stock
marketmarketTime no of
respondentLess than 1 year 10
1 year 20
2 year 30
More than 3 year
40
Total respondents
100
Respondents having Demat Respondents having Demat A/CA/C
Response no of respondents
Yes 70
No 30
Total 100
Would you like to openWould you like to openresponse Respon
dentPercentage
Yes 18 60
No 12 40
total 30 100
In which In which depositorydepository would would you want you want toto open demat open demat
accountaccountdepository
No of respondent
percentage
NSDL 22 73
CDSL 8 27
In which security do you In which security do you Trade Trade
Security No of respondents
Equity 20
Bonds 20debenture 40All 20total 100
Name the DP in which you Name the DP in which you have Demat A/Chave Demat A/C
respondentsLSE securities 50
Bank DP 30
Any other 20
Total 100
0 20 40 60
LSE Security
Bank DP
Any otherno of respondents
no of respondents
FindingFinding• Among the people surveyed majority of the male respondents are
more than female.
• Out of the survey of 100customers 50% have a Demat account. There are basically two depositories in India. They are NSDL and
CDSL. Out of the survey 73% of accounts are open in NSDL and rest are open in the NSDL etc.
In future aspect of the people were interested to open a account in LSE 50% and 30% are in the banks and rest are the hands of other companies.
• Depositary system provides the fast settlement of the tractions.
ConclusionsConclusions• From the survey conducted it is observed that depository provides
various benefit to both investors and companies. From the study conducted the following conclusions can be drawn.
• Indian stock markets are growing and are showing new path ways to trade in various financial instruments.
• Investors are using all services that provided by Stock exchange and Depository.
• It shows that lack of knowledge and awareness regarding Stoke exchange and Depository it reason that more investors are away from stoke market.
SuggestionsSuggestions• We have made a survey regarding the customer awareness regarding
the depository. In our survey we had confronted with different difficulties, which are faced by investors, and in this regard our suggestions are:
• The DP's should provide the facility to check the accounts on Internet, The DP's should send the statement of holdings to their clients in time,DP's should create more awareness among the investors through advertising campanies,DP's should try to open their branches in every city so that volumes should increase, The DP's are lacking in management area so effective management in overall depository section can help the DP's in improving their quality of service.
• The overall trend says that all are having problem with the high charge structure of the DP's and that should be reduced so that small investors could not find any hesitation in opening an account with the DP's.
•
