INTRODUCTION

A Depository facilitates holding of securities in the electronic form and enables securities

transactions to be processed by book entry by a Depository Participant (DP), who as an

agent of the depository, offers depository services to investors. According to SEBI

guidelines, financial institutions, banks, custodians, stockbrokers, etc. are eligible to act

as DPs. The investor who is known as beneficial owner (BO) has to open a demat

account through any DP for dematerialisation of his holdings and transferring securities.

The balances in the investors account recorded and maintained with CDSL can be

obtained through the DP. The DP is required to provide the investor, at regular intervals,

a statement of account which gives the details of the securities holdings and transactions.

The depository system has effectively eliminated paper-based certificates which were

prone to be fake, forged, counterfeit resulting in bad deliveries. CDSL offers an efficient

and instantaneous transfer of securities.

CDSL was promoted by Bombay Stock Exchange Limited (BSE) jointly with leading

banks such as State Bank of India, Bank of India, Bank of Baroda, HDFC Bank, Standard

Chartered Bank, Union Bank of India and Centurion Bank.

CDSL was set up with the objective of providing convenient, dependable and secure

depository services at affordable cost to all market participants. Some of the important

milestones of CDSL system are:

CDSL received the certificate of commencement of business from SEBI in February,

1999.

Honourable Union Finance Minister, Shri Yashwant Sinha flagged off the operations of

CDSL on July 15, 1999.

Settlement of trades in the demat mode through BOI Shareholding Limited, the clearing

house of BSE, started in July 1999.

All leading stock exchanges like the National Stock Exchange, Calcutta Stock

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Exchange, Delhi Stock Exchange, The Stock Exchange, Ahmedabad, etc have

established connectivity with CDSL.

As at the end of Dec 2007, over 5000 issuers have admitted their securities (equities,

bonds, debentures, commercial papers), units of mutual funds, certificate of deposits

etc. into the CDSL system.

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DEPOSITORIES ACT 1996

ACT NO. 22 OF 1996

[10th August, 1996.]

BE it enacted by Parliament in die Forty-seventh Year of the Republic of India as

follows:- An Act to provide for regulation of depositories in securities and for matters

connected therewith or incidental thereto. CHAP PRELIMINARY CHAPTER I

PRELIMINARY

Short title extent and commencement.

1. Short title extent and commencement. (1) This Act may be called the Depositories Act,

1996.

(2) It extends to the whole of India.

(3) It shall be deemed to have come into force on the 20th day of September,

1995.

Definitions

In this Act, unless die context otherwise requires,- (a) "beneficial owner" means a person

whose name is recorded as such with depository; (b) "Board" means the Securities and

Exchange Board of India established under section 3 of die Securities and Exchange

Board of India Act, 1992 (15 of 1992): (c) "bye-laws" means bye-laws made by a

depository under section 26; (d) "Company Law Board" means the Board of Company

Law Administration constituted under section 10E of the Companies Act, 1956 (1 of

1956); (e) "depository" means a company formed and registered under the Companies

Act, 1956 (1 of 1956) and which has been granted a certificate of registration under sub-

section (1A) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of

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1992); 2 (f) "issuer" means any person making an issue of securities; (g) "participant"

means a person registered as Such tinder subsection (1A) of section 12 of the Securities

and Exchange Board of India Act, 1992 (15 of 1992); (h) "prescribed" means prescribed

by rules made under this Act; (i) "record" includes the records maintained in the form of

books or stored in a computer or in such other form as may be determined by regulations;

(j) "registered owner" means a depository whose name is entered as such in the register of

the issuer; (k) "regulations" means the regulations made by the Board; (l) "security"

means such security as may be specified by the Board; (m) "service" means any service

connected with recording of allotment of securities or transfer of ownership of securities

in the record of a depository.

Words and expressions used herein and not defined but defined in the Companies Act,

1956 (1 of 1956) or the Securities Contracts (Regulation) Act, 1956 (42 of 1956) or the

Securities and Exchange Board of India Act, 1992, (15 of 1992) shall have the meanings

respectively assigned to them in those Acts. CHAP CERTIFICATE OF

COMMENCEMENT OF BUSINESS

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CERTIFICATE OF COMMENCEMENT OF BUSINESS

Certificate of commencement of business by depositories:

No depository shall act as a depository unless it obtains a certificate of commencement of

business from the Board.

A certificate granted under subsection (1) shall be in such form as may be specified by

the regulations.

The Board shall not grant it certificate under Sub-section

Unless it is satisfied that the depository has adequate systems and safeguards to prevent

manipulation of records and transactions: Provided that no certificate shall be refused

under this section unless the depository concerned has been given a reasonable

opportunity of being heard. CHAP RIGHTS AND OBLIGATIONS OF

DEPOSITORIES, PARTICIPANTS, ISSUERS AND BENEFICIAL OWNERS

CHAPTER III RIGHTS AND OBLIGATIONS OF DEPOSITORIES, PARTICIPANTS,

ISSUERS AND BENEFICIAL OWNERS

Agreement between depository and participant

A depository shall enter into an agreement with one or more participants as its agent.

Every agreement tinder sub-section shall be in such form as may be specified by the bye-

laws.

Services of depository: Any person, through a participant, may enter into an agreement,

in such form as may be specified by the bye- laws, with any depository for availing its

services.

Surrender of certificate of security:

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Surrender of certificate of security. Any person who has entered into an agreement under

section 5 shall surrender the certificate of security, for which he seeks to avail the

services of a depository, to the issuer in such manner as may be specified by the

regulations.

The issuer, on receipt of certificate of security under sub- section (1), shall cancel the

certificate of security and substitute in its records the name of the depository as a

registered owner in respect of that security and inform the depository accordingly.

A depository shall, on receipt of information under subsection (2), enter the name of the

person referred to in sub- section (1) in its records, as the beneficial owner.

Registration of transfer of securities with depository

Registration of transfer of securities with depository Every depository shall, on receipt of

intimation from a participant, register the transfer of security in the name of the

transferee.

If a beneficial owner or a transferee of any security seeks to have custody of such

security, the depository shall inform the issuer accordingly. 3

Options to receive security certificate or hold securities with depository. 8. Options to

receive security certificate or hold securities with depository. Every person subscribing to

securities offered by an issuer shall have the option either to receive the security

certificates or hold securities with a depository.

Where a person opts to hold a security with a depository, the issuer shall intimate such

depository the details of allotment of the security, and on receipt of such information the

depository shall enter in its records the name of the allottee as the beneficial owner of that

security.

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Securities in depositories to be in fungible form:

All securities held by a depository shall be dematerialised and shall be in a fungible form.

Nothing contained in sections 153, 153A, 153B, 187B, 187C and 372 of the Companies

Act, 1956 (1 of 1956) shall apply to the securities held by a depository on behalf of the

beneficial owners.

Rights of depositories and beneficial owner:

Notwithstanding anything contained in any other law for the time being in force, a

depository shall be deemed to be the registered owner for the purposes of effecting

transfer of ownership of security on behalf of a beneficial owner.

Save as otherwise provided in sub-section (1), the depository as a registered owner shall

not have any voting rights or any other rights in respect of securities held by it.

The beneficial owner shall be entitled to all the rights and benefits and be subjected to all

the liabilities in respect of his securities held by a depository.

Register of beneficial owner. 11. Register of beneficial owner. Every depository shall

maintain a register and an index of beneficial owners in the manner provided in sections

150, 151 and 152 of the Companies Act, 1956 (1 of 1956).

Pledge or hypothecation of securities held in a depository. 12. Pledge or hypothecation of

securities held in a depository.

(1) Subject to such regulations and bye-laws, as may be made in this behalf, a beneficial

owner may with the previous approval of the depository create a pledge or hypothecation

in respect of a security owned by him through a depository.

(2) Every beneficial owner shall give intimation of such pledge or hypothecation to the

depository and such depository shall thereupon make entries in its records accordingly.

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(3) Any entry in the records of a depository under sub-section

Option to opt out in respect of any security:

If a beneficial owner seeks to opt out of a depository in respect of any security he shall

inform the depository accordingly.

The depository shall on receipt of intimation under sub- section (1) make appropriate

entries in its records and shall inform the issuer.

Every issuer shall, Within thirty days of the receipt of intimation from the depository and

on fulfilment of such conditions and on payment of such fees as may be specified by the

regulations, issue the certificate of securities to the beneficial owner or the transferee, as

the case may be.

Act 18 of 1891 to apply to depositories. 15. Act 18 of 1891 to apply to depositories. The

Bankers' Books Evidence Act, 1891 shall apply in relation to a depository as if it were a

bank as defined in section 2 of that Act.

Depositories to indemnify loss in certain cases:

Without prejudice to the provisions of any other law for the time being in force, any loss

caused to the beneficial owner due to the negligence of the depository or the participant,

the depository shall indemnify such beneficial owner.

Where the loss due to the negligence of the participant under sub-section (1) is

indemnified by the depository, the depository shall have the right to recover the same

from such participant.

Rights and obligations of depositories, etc:

Subject to the provisions of this Act, the rights and obligations of the deposi- tories,

participants and the issuers whose securities are dealt with by a depository shall be

specified by the regulations.

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The eligibility criteria for admission of securities into the depository shall be specified by

the regulations. CHAP ENQUIRY AND INSPECTION CHAPTER IV ENQUIRY AND

INSPECTION

Power of board to call for information and enquiry:

The Board, on being satisfied that it is necessary in the public interest or in the interest of

investors so to do, may, by order in writing,- (a) call upon any issuer, depository,

participant or beneficial owner to furnish in writing such information relating to the

securities held in a depository as it may require; or (b) authorise any person to make ail

enquiry or inspection in relation to die affairs of the issuer, beneficial owner, depository

or participant, who shall submit a report of such enquiry or inspection to it within such

period as may be specified in the order.

Every director, manager, partner, secretary, officer or employee of the depository or

issuer or the participant or beneficial owner shall on demand produce before the person

making the enquiry or inspection all information or such records and other documents in

his custody having a bearing on the subject matter of such enquiry or inspection.

Power of board to give directions in certain cases. 19. Power of board to give directions

in certain cases. Save as provided in this Act, if after making or causing to be made an

enquiry or inspection, die Board is satisfied that it is necessary- (i) in the interest of

investors, or orderly development of securities market; or (ii) to prevent the affairs of any

depository or participant being conducted in the manner detrimental to the interests of

investors or securities market, it may issue such directions- (a) to any depository or

participant or any person associated with the securities market; or (b) to any issuer, as

may be appropriate in the interest of investors or the securities market.

Whoever contravenes or attempts to contravene or abets the contravention of the

provisions of this Act or any regulations or bye-laws made thereunder shall be punishable

with imprisonment for a term which may extend to five years, or with fine, or with both.

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Offences by companies:

Where an offence under this Act has been committed by a company, every person who at

the time the offence was committed was in charge of, and was responsible to, the

company for the conduct of the business of the company, as well as the company, shall be

deemed to be guilty of the offence and shall be liable to be proceeded against and

punished accordingly: Provided that nothing contained in this sub-section shall render

any such person liable to any punishment provided in this Act, if he proves that the

offence was committed without his knowledge or that he had exercised all due diligence

to prevent the commission of such offence. 5

Notwithstanding anything contained in sub-section (1), where an offence under this Act

has been committed by a company and it is proved that the offence has been committed

with the consent or connivance of, or is attributable to any neglect on the part of, any

director, manager, secretary or other officer of the company, such director, manager,

secretary or other officer shall also be deemed to be guilty of the offence and shall be

liable to be proceeded against and punished accordingly. Explanation. -For the purposes

of this section, - (a) "company" means any body corporate and includes a firm or other

association of individuals; and (b) "director", in relation to a firm, means a partner in the

firm. CHAP MISCELLANEOUS CHAPTER VI MISCELLANEOUS

Cognizance of offences by courts:

No court shall take cognizance of any offence punishable under this Act or any

regulations or bye-laws made thereunder, save on a complaint made by the Board.

No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first

class shall try any offence punishable under this Act.

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Appeals:

Any person aggrieved by an order of the Board made under this Act, or the regulations

made thereunder may prefer an appeal to the Central Government within such time as

may be prescribed.

No appeal shall be admitted if it is preferred after the expiry of the period prescribed

therefor: Provided that an appeal may be admitted after the expiry of the period

prescribed therefor if the appellant satisfies the Central Government that he had sufficient

cause for not preferring the appeal within the prescribed period.

Every appeal made under this section shall be made in such form and shall be

accompanied by a copy of the order appealed against and by such fees as may be

prescribed.

The procedure for disposing of an appeal shall be such as may be prescribed: Provided

that before disposing of an appeal, the appellant shall be given a reasonable opportunity

of being heard.

Power of Central Government to make rules:

The Central Government may, by notification in the Official Gazette, make rules for

carrying out the provisions of this Act.

In particular, and without prejudice to the generality of the foregoing power, such rules

may provide for all or any of the following matters, namely: - (a) the time within which

an appeal may be preferred under sub-section (1) of section 23; (b) the form in which an

appeal may be preferred under sub-section (3) of section 23 and the fees payable in

respect of such appeal; (c) the procedure for disposing of an appeal under sub-section (4)

of section 23.

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Power of board to make regulations:

Without prejudice to the provisions contained in section 30 of the Securities and

Exchange Board of India Act, 1992 (15 of 1992), the Board may, by notification in the

Official Gazette, make regulations consistent with the provisions of this Act and the rules

made thereunder to carry out the purposes of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such

regulations may provide for- (a) the form in which record is to be maintained under

clause (i) of sub-section (1) of section 2; (b) the form in which the certificate of

commencement of business shall be issued under sub-section (2) of section 3; (c) the

manner in which the certificate of security shall be surrendered under sub-section (1) of

section 6; (d) the manner of creating a pledge or hypothecation in respect of security

owned by a beneficial owner under sub- section (1) of section 12; (e) the conditions and

the fees payable with respect to the issue of certificate of securities under sub-section (3)

of section 14; 6 the rights and obligations of the depositories, participants and the issuers

under sub-section (1) of section 17; (g) the eligibility criteria for admission of securities

into the depository under sub-section (2) of section 17.

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Power of depositories to make bye-laws

A depository shall, with the previous approval of the Board, make bye-laws consistent

with the provisions of this Act and the regulations.

In particular, and without prejudice to the generality of the foregoing power, such bye-

laws shall Provide for- (a) the eligibility criteria for admission and removal of securities

in the depository; (b) the conditions subject to which the securities shall be dealt with; (c)

the eligibility criteria for admission of any person as a participant; (d) the manner and

procedure for dematerialisation of securities; (e) the procedure for transactions within the

depository; (f) the mariner in which securities shall be dealt with or withdrawn from a

depository; (g) the procedure for ensuring safeguards to protect the interests of

participants and beneficial owners; (h) the conditions of admission into and withdrawal

from a participant by a beneficial owner; (i) the procedure for conveying information to

the participants and beneficial owners on dividend declaration, shareholder meetings and

other matters of interest to the beneficial owners; (j) the manner of distribution of

dividends, interest and monetary benefits received from the company among beneficial

owners; (k) the manner of creating pledge or hypothecation in respect of securities held

with a depository; (l) inter se rights and obligations among the depository, issuer,

participants and beneficial owners; (m) the manner and the periodicity of furnishing

information to the Board, issuer and other persons; (n) the procedure for resolving

disputes involving depository, issuer, company or a beneficial owner; (o) the procedure

for proceeding against the participant committing breach of the regulations and

provisions for suspension and expulsion of participants from the depository and

cancellation of agreements entered with the depository; (p) the internal control standards

including procedure for auditing, reviewing and monitoring.

Where the Board considers it expedient so to do, it may, by order in writing, direct a

depository to make any bye-laws or to amend or revoke any bye-laws already made

within such period as it may specify in this behalf.

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If the depository fails or neglects to comply with such order within the specified period,

the Board may make the bye-laws or amend or revoke the bye-laws made either in the

form specified in the order or with such modifications thereof as the Board thinks fit.

Rules and regulations to be laid before parliament. Rules and regulations to be laid before

parliament. Every rule and every regulation made under this Act shall be laid, as soon as

may be after it is made, before each House of Parliament, while it is in session, for a total

period of thirty days which may be comprised in one, session or in two or more

successive sessions, and if, before the expiry of the session immediately following the

session or the successive sessions aforesaid, both Houses agree in making any

modification in the rule or regulation or both Houses agree that the rule or regulation

should not be made, the rule or regulation shall thereafter have effect only in such

modified form or be of no effect, as the case may be; so, however, that any such

modification or annulment shall be without prejudice to the validity of anything

previously done under that rule or regulation.

Application of other laws not barred. The provisions of this Act shall be in addition to,

and not in derogation of, any other law for the time being in force relating to the holding

and transfer of securities.

Removal of difficulties:

If any difficulty arises in giving effect to the provisions of this Act, the Central

Government may, by order published in the Official Gazette, make such provisions not

inconsistent with the provisions of this Act as appear to it to be necessary or expedient for

removing the difficulty: Provided that no order shall be made under this section after the

expiry of a period of two years from the commencement of this Act.

Every order made under this section shall be laid, as soon as may be after it is made,

before each House of Parliament.

Amendments to certain enactments. The enactments specified in the Schedule to this Act

shall be amended in the manner provided therein.

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IMPORTANCE OF DEPOSITORIES

The recent exparte interim order of Sebi concerning IPOs has raised several issues and

has also pointed a finger against quite a few market intermediaries for their failure to

discharge their role in accordance with the applicable law. Among the important agencies

that figure prominently in the Sebi order are the depositories.

Investors would recall that not very long ago, securities in the capital market in India

were traded in the physical form. As a result, the market suffered from various drawbacks

including thefts and forgeries of share certificates. Moreover, dealing in the physical

mode had its own limitations which inhibited the growth of the capital market in India.

These shortcomings were acutely felt more so after the liberalisation of the economy. To

address all such issues the Central Government enacted the Depositories Act, 1996, with

retrospective effect from September 20, 1995.

Is it compulsory for every investor to hold securities in the demat form or can he also

hold shares in the physical form? The Depositories Act provides that every person

subscribing to securities offered by an issuer has the option to receive the security

certificates or hold securities with a depository. However, investors need to note that

while securities can be held by way of certificates, dealing in the market is permitted only

if the securities are in the demat mode.

When an investor holds securities in the physical form, the certificates bear serial

numbers, the distinctive numbers, etc. However, when the securities are held in demat

mode, they are akin to money lying in the bank account. Therefore, there is no question

of certificate numbers or distinctive numbers, though the quantity will remain the same.

As in the case of certificates, holders of securities in demat mode (called beneficial

owners) can create a pledge or hypothecation in respect of the securities held by them. In

such cases, it is necessary for the beneficial owner to inform the depository of the pledge

or hypothecation created by him. The depository concerned has to make a noting in its

records to that effect.

15

Can the investor, who has opted for holding the securities in demat form, ask for

certificates on opting out of the depository? A beneficial owner has a right to opt out of

the depository at any time he or she may desire. In fact, the depository has to note the

request in its records and also...

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REVIEW OF EXISTING LITERATURE

Access to finance – it is not considered that anyone of a particular race, gender, disability,

sexuality, or religion would have difficulties in accessing the necessary finances to be

able to sustain the tenancy (and hence be eligible for the scheme). As mentioned

previously, tenants’ or residents’ debts to former landlords or the Council are a barrier to

accessing the service, but this can be mitigated if it is proven that the applicant is making

arrangements to repay the debt. Additionally, administrative fees charged by the landlord

for credit checks and contract preparation are not eligible for the loan, but, where this has

been an issue, the money has been paid from the prevention budget. None of the above

issues are gender, disability, sexuality, or religion specific. As regards race, a proportion

of migrants, legal and illegal, have no recourse to public funds, including the rental

deposit scheme – and it could be argued that this is directly discriminatory.

Huntingdonshire District Council

Researcher found that deposit schemes are most popular in the public because they want

to secure their life and want to earn some extra money with their existing income

Researcher

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INDUSTRY PROFILE

INDUSTRY DESCRIPTION

The Deposit Banking industry includes firms engaged in deposit banking or closely

related functions, including fiduciary activities. This industry is a compilation of several

sectors: central reserve depository institutions (SIC 6011-

6019); commercial banks (SIC 6021-6029); savings institutions (SIC 6035-6036); credit

unions (SIC 6061-6062); foreign banks and branches (SIC 6081-6082); and other

functions related to depository banking (SIC 6091-6099).

EMPLOYMENT AND SPECIALIZATION, 2000

In 2000, the majority of deposit banking jobs were located in metropolitan St. Louis,

Kansas City, Columbia and Springfield. Additionally, deposit banking jobs are present in

many rural areas of the state.

According to specialization ratios (location quotients), 30 Missouri counties were highly

specialized in deposit banking employment. These areas were concentrated in north

Missouri, south central Missouri, and St. Louis City. The most specialized counties in the

state were Maries, Putnam, Chariton, Daviess, and Worth. It is important to note that SRs

measure the proportion of industry employment relative to the state average, not the total

number of jobs.

Banking in India originated in the last decades of the 18th century. The oldest bank in

existence in India is the State Bank of India, a government-owned bank that traces its

origins back to June 1806 and that is the largest commercial bank in the country. Central

banking is the responsibility of the Reserve Bank of India, which in 1935 formally took

over these responsibilities from the then Imperial Bank of India, relegating it to

commercial banking functions. After India's independence in 1947, the Reserve Bank

was nationalized and given broader powers. In 1969 the government nationalized the 14

largest commercial banks; the government nationalized the six next largest in 1980.

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Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks

(that is with the Government of India holding a stake), 31 private banks (these do not

have government stake; they may be publicly listed and traded on stock exchanges) and

38 foreign banks. They have a combined network of over 53,000 branches and 17,000

ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks

hold over 75 percent of total assets of the banking industry, with the private and foreign

banks holding 18.2% and 6.5% respectively

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EARLY HISTORY

Banking in India originated in the last decades of the 18th century. The first banks were

The General Bank of India which started in 1786, and the Bank of Hindustan, both of

which are now defunct. The oldest bank in existence in India is the State Bank of India,

which originated in the Bank of Calcutta in June 1806, which almost immediately

became the Bank of Bengal. This was one of the three presidency banks, the other two

being the Bank of Bombay and the Bank of Madras, all three of which were established

under charters from the British East India Company. For many years the Presidency

banks acted as quasi-central banks, as did their successors. The three banks merged in

1925 to form the Imperial Bank of India, which, upon India's independence, became the

State Bank of India.

Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as

a consequence of the economic crisis of 1848-49. The Allahabad Bank, established in

1865 and still functioning today, is the oldest Joint Stock bank in India. It was not the

first though. That honor belongs to the Bank of Upper India, which was established in

1863, and which survived until 1913, when it failed, with some of its assets and liabilities

being transferred to the Alliance Bank of Simla.

When the American Civil War stopped the supply of cotton to Lancashire from the

Confederate States, promoters opened banks to finance trading in Indian cotton. With

large exposure to speculative ventures, most of the banks opened in India during that

period failed. The depositors lost money and lost interest in keeping deposits with banks.

Subsequently, banking in India remained the exclusive domain of Europeans for next

several decades until the beginning of the 20th century.

Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire

d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in

1862; branches in Madras and Pondichery, then a French colony, followed. HSBC

established itself in Bengal in 1869. Calcutta was the most active trading port in India,

mainly due to the trade of the British Empire, and so became a banking center.

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The post 1990s brought about a paradigm shift in the scenario of Indian financial

market. The economic renaissance brought by liberation of Indian economy had a

stupendous effect on the financial health of India. The Indian financial market was

previously insulated from foreign investors and public sector undertakings / government

institutions was in total control of Indian financial market. With the advent of modern

economic policies at par with western counterparts large foreign direct investments /

FDI started to flow into the Indian market. The rise in business activities and its

subsequent rise in financial activities led to the need of proper and accurate information

on activities of financial market. Further, this led to the rise of Economic / Financial

dailies in India. These dailies provides businessman, investors and also the common man

with ready-to-use data, projections and informations on India's economy. The

projections / future-movements of the financial market are based on information and data

collected from daily activities of the finance market. Financial Times India not only

provides information on financial markets but also important decisions of the

Government which compliments the financial health of the country. Financial Times

India also reflects details of all indexes of financial markets, like –

Derivative Market

Commodity Market

Bullion Market

Equity Market

Debt Market

Bond Market

Mutual funds

Insurance Market

Banking Industry

WTO

Micro finance

Farmers guide

Others.

Financial Times India also quotes daily details of opening and closing high and low

respectively, of each and every market that operates in India. Details of auctions also

21

indicated in Financial Times India. Financial Times India also powers its readers with

comprehensive information on other relevant markets, sectors and sub-sectors not only

featuring India but also International market. Manufacturing, Pharmaceuticals and

Biotechnology, Chemicals, Retail, Food and Beverages, Electronics, Information

Technology, Telecommunications and host of other industries are covered in its column.

Government laws, rules and its amendment are also reflected promptly to keep Financial

Times India readers / users abreast with latest and seamless market information.

22

COMPANY PROFILE

Sahara India Pariwar is a major entity on the corporate scene having diversified

business interests that include Finance, Infrastructure & Housing, Media &

Entertainment, Consumer Products, Manufacturing, Services & Trading.

Quality

Quality is our essence and we, at Sahara India Pariwar, have always stressed on the

Qualitative aspect. Consequently in this run for quality, quantity has always pursued us.

We look forward to reaching the zenith and reaffirm our commitment to the process of

sound nation-building.

Emotion

Emotion is in Performance of genuine duties towards the loved ones primarily in their

benefit, from their point of view. EMOTION is THE KEY that generates the required

energy and enthusiasm for desired quality performance.

Discipline

The enthusiastic obedience of laws and orders, which are given by the rightful authority.

Duty

The enthusiastic obedience of laws and orders, which are given by our CONSCIENCE.

No Discrimination

Never should we discriminate in any of our actions, reactions, attitudes, decisions,

conclusions, in any of our expressions while caring for the six healths of other human

beings, namely physical, material, mental, emotional, social and professional healths.

Quality

Results from honouring Rules, Regulations, Commitments, Values, Fairness,

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Performance of Duties by honestly balancing one's own and others' reasonable point of

view in the matters of Material & Emotional aspects.

Give Respect

To definitely make others feel important and respected by giving sincere regard to others'

feelings, reasonable wishes & thoughts with an open and receptive mind and warmth.

Self-Respect

To develop a sense of respect for oneself in others' mind, i.e. to generate genuine & warm

feelings for oneself among others on a continuous basis.

Truth

Means total transparency in action, reaction, attitude and all other expressions and the

conviction to follow the right course.

Collective Materialism

Means to progress and prosper together for collective sharing and caring and not

individually or for a select group.

Religion

There is a religion higher than religion itself - it is NATIONALITY. We may practise our

religions in the confines of our homes, but outside, we should be Indians and only

Indians. 'Bharatiyata' or Nationalism thus becomes our supreme religion. 

Absolute Honesty

People generally manipulate and deceive for achieving their unreasonable desires and

greed if others do not or can not see, hear or understand. But we firmly believe that our

mind inside knows the truth and we should be absolutely honest to our mind inside and

accordingly our actions, reactions, directions, decisions and all our expressions should be

present in all human dealings.

24

BUSINESSES

FINANCE

INDIA'S LARGEST RESIDUARY NON-BANKING COMPANY IN THE

PRIVATE SECTOR WITH THE HIGHEST YEARLY DEPOSIT LEVEL

First RNBC to be granted a certificate of registration by the Reserve Bank of

India.

Number of deposit accounts as on July 2009 - 3.25 crore

1508 Service Centres

Succeeded in inculcating the savings habit amongst the common

man-middle/lower middle/lower class of the society with even a minimum daily

deposit of Re.1.

Contributing to the national economy for the overall development of the country,

through money invested in Government Securities, Banks & Institutions.

Compliance of 'KYC' and Anti Money Laundering standards of RNBC's issued by

the Reserve Bank of India.

Sponsor of Sahara Mutual Fund.

Co-promoter of Life Insurance business under the name and style of Sahara India

Life Insurance Company Limited.

Registration by Reserve Bank of India

Sahara India Financial Corporation Limited is the first Residury Non-Banking Company

of the country that has been granted Certificate of Registration by Reserve Bank of India

in conformity with directions applicable on Residuary Non-Banking Financial

Companies (RNBCs)

Our Strong and Strict Fundamentals-

Stringent Expense Control with the Cost of Fund including Interest Cost about 7%

per annum.

25

No Speculative Investment with total Investment in Equity at 0.85% of the Total

Assets.

High-Class Quality Investment which restrict our Non-Performing Assets ratio to

0.04% only.

Capital Adequacy Ratio of 28.96% while the statutory requirement is for 12%

only.

Our Controls & Checks-

Customised Application softwares are being used to provide prompt, error free &

secure services to our Esteemed Depositors.

All Receipts & Payments are possible after a set of foolproof controls without any

need for human reconciliation.

Each & every payment, at all Service Centers is through a computer processed

advice issued from Command Office.

1493 Service Centers have online connectivity through a network of VSAT's

making communication fast & reliable.

"RESIDUARY NON-BANKING COMPANIES (RESERVE BANK OF INDIA)

DIRECTIONS, 1987" WHICH ARE TOTALLY APPLICABLE ON SIFO.

THE DIRECTION: To invest and keep invested 100% of deposit liabilities along with

interest accrued thereon in high quality securities as specified/approve d by Reserve Bank

Of India (including Government Securities and/or Government Guaranteed Bonds and

Fixed/Certificate of Deposit of Scheduled Commercial Banks and/or Government

Financial Institutions).

SAFETY OF THE INVESTED SCRIPS: To keep scrips in safe custody with a

nationalised bank. Not even a single paisa withdrawal from its investments for its

expenses or other use. Withdrawals can only be possible for discharge of liabilities to the

depositors.

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SECURITY FOR DEPOSITORS: All these securities are to be valued at their current

market price and the realisable value of all these assets should at any point of time be

100% or more of the aggregate deposit liabilities alongwith interest accrued thereon.

Thus there is a full cover for all the depositors.

AUTHENTICATION: The above pattern of investment is authenticated on a quarterly

basis by the statutory auditors and the auditors' certificate issued at the end of every

March, June, September & December, is submitted to the Reserve Bank of India within a

specified time. Various other returns as per statutory requirements are also furnished

regularly.

27

INSURANCE

Sahara India Life Insurance Company Ltd.

First Wholly Indian Life Insurance Company in the Private Sector

With Life Insurance Penetration in India at just about 22% of the Insurable

population and premium income of 2% of GDP, the group sees it as a very high

growth sector of Indian economy

Sahara India Life Insurance Company Ltd. (SILICL) is today the first wholly Indian-

owned Life Insurance Company in the private sector. We launched our operations on 30

October 2004 after being granted license to operate as a life insurer in India by Insurance

Regulatory and Development Authority on 6 February 2004 .

The range of products:

Sahara Nidhi - Endowment (with profit)

Sahara Sampann - Money back (with profit)

Sahara Amar Jeevan - Deferred Annuity

Sahara Kavach – A pure term policy

Sahara Sanchay-R - Unit Linked plan

Sahara Swabhimaan - Unit Linked Pension Plan

Sahara Ankur – A unit linked policy for children

Sahara Samriddhi – Money back with profits

Sahara Sahyog - Micro Endowment Insurance Plan

Sahara Samooh Samyojana - Unit Linked Group Savings cum Insurance plan

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Sahara Jamakarta Samooh Bima - Group Term Insurance Plan-Non-Par

We also offer Accident Benefit and Critical Illness Riders. SILICL has been set up with

the state-of-the-art technology. Leading Actuarial consultants M/s Watson Wyatt

Consulting Pvt. Ltd. train our officials on Actuarial VIP software system and other

matters including product development and pricing. The re-insurers of SILICL are world

renowned Gen Re and Munich Re Insurance Companies.

29

INFRASTRUCTURE AND HOUSING

SAHARA Grace - Gurgaon

Sahara Grace township launched in April 2003, popularly known as the residing place of

the Modern Maharajas has shaped new parameters of excellence. The project is a

phenomenon, specifically designed as a status symbol for all those who have excelled in

life with a penchant for the best and an attitude of no compromise. With an impeccable

blend of premium apartments, magnificent villas and exclusive pent houses, it is an

address that matches their style. With optimum quality and durability that exudes the

majestic touch of value added living, it is spread over an area of 10.98 acre and covers

around 207 units. It is strategically located in the vicinity of Delhi on the main Mehrauli-

Gurgaon Road besides the famous Sahara Mall. This is the most irresistible home ever

offered in India. Comprehensive security measures are an integral part of this township

with dome cameras, separate entry/exit for the residents, panic buttons in each apartment

etc.

SAHARA STATES

Sahara States are developed in a step with the avowed objective of the company to

promote urban development in a planned manner to fulfill existing gap between demand

and supply.

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It is the commitment of Sahara India Pariwar to build a better India that reflects clearly in

every project of Sahara Infrastructure & Housing. Sahara States is a techno-residential

township providing an ideal living environment to all at an affordable cost.

Developed infrastructure, environment friendly avenues, playgrounds, parks, greenery,

meticulously planned houses and buildings are the exclusive highlights of this township.

The 1, 2 & 3 bedroom houses in three storied blocks and 3-4 room independent-

expandable bungalows have been specifically designed to meet the requirements of the

people. The names of these residences based on the ragas of Indian classical music

resonate symphony.

Sahara States aims at the realization of modern living facilitated by quality construction,

value enhancing conveniences - fully secured by round-the-clock security assuring peace

of mind - all at an affordable price. Therefore the 4 earmarked cities: Lucknow,

Hyderabad, Bhopal & Gorakhpur have become landmarks and revolutionized the real

estate scenario as a whole in India.

SAHARA TRADE CENTER

Launched in April 1999 in Lucknow, this trade centre is another commercial outlet in the

vicinity of Sahara Shopping Center. It has the same kind of tenant mix as the later

SAHARA PLAZA

Sahara Plaza was launched in Oct. 2001 at Gomti Nagar area in Lucknow. Built with the

concept of serving daily needs of the near-by residents, it offers apparel shops, jewellery

shops, restaurants and other such shops.

SAHARA GANJ - LUCKNOW

Lucknow is going through a transformation in its lifestyle with Sahara Infrastructure &

Housing generating ample avenues. Be it residential or commercial, our projects are

making a statement that is bound to turn eyes. In the same lines the recent project Sahara

Ganj, opened in November 2005 to provide the city with the best entertainment arena. A

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brand Super Mall, it is self sufficient in its offerings & specifications of the highest order.

The built up area of approx 525 Thousand sq. ft. Matching international standards &

having the best value additions, it truly orchestrates a synergistic symphony of retailing

amidst an environment of recreation and pleasure with state-of-the-art facilities. With its

majestic elevation, massive atrium, spacious corridors, multiple escalators &

designer capsule lifts it is altogether a different world. The façade comprising of ground

plus 4 floors all imbibed with the highest order of security provide the customers a safe

environment to shop, relax, enjoy & is a part of the modern world. Big Bazaar &

Pantaloons are the anchors along with the other occupants who are in the sections of

garments, entertainment, furniture etc. Further, the food chain McDonald is an integral

part of the Mall.

32

MEDIA AND ENTERTAINMENT

About SaharaOne Television

Sahara India Pariwar’s foray into the field of media and entertainment began with the

launch of Sahara TV on 28 March 2000 with the 24-hour free-to-air Digital Hindi

General Entertainment Channel beamed across 66 countries. On 10th October 2004, the

channel was rechristened Sahara One Television with the launch of the First Indian

Sangeet Awards held at the Royal Albert Hall, London. Sahara One subsequently

converted into a pay channel mode and is part of the Sahara One bouquet of channels.

Today, Sahara One Television reaches out to over 40 million Cable and Satellite

Television homes.

SaharaOne Television provides a strong mix of engrossing fiction & non-fiction

entertainment and is popular for its star-studded mega events, dramas, kids programs,

thrillers, feature films & film-based programmes, and much more.  Even as it provides a

variety of shows across all the above genres, SaharaOne Television is also focusing on

providing an entertaining and engrossing portrayal of strong, independent thinking Indian

women in its soaps and serials. These include Vaishnavi of Mata Ki Chowki , Pari of

Woh Rehne Waali Mehlon Ki, Kakul from Ghar… Ek Sapnaa, Anupama of Doli

Saja Ke and Pratha of Kaisi Laagi Lagan – all of whom have become household names

among television viewers.

Offering a range of Consumer Products

At present our product division offers a range of products of everyday use as well as

objects of desire through a chain of showrooms called 'Unique' in various locations of

India. The number of these showrooms is proposed to be increased to

6000. The products offered come under three categories

   1. Sahara Select - Fashion & Lifestyle Products

33

   2. Sahara Care - Daily Need Products and

   3. Sahara Sports - Fitness & Leisure Products

Sahara Select

Personal & Beauty Care

Home Care

Clothing

Jewellery & Watches

Accessories

Home Decor

Houseware

Home Furnishings

Kids Products

Furniture

Sahara Care

Personal & Beauty Care

Home Care

Food items

Sahara Sports

Sports Wear

Sports Accessories

34

Providing IT Services, Outsourcing, Web Media and Mobile Interactivity &

Application Solution

Sahara Next is part of $ 50 Billion Group managing one of the Largest IT & Telecom

Infrastructure in the country. Applied Innovation is the ability that Sahara Next uses to

infuse newer ideas and newer ways of addressing objectives.

A 360-degree business approach covering process, delivery, business and technology

innovations that help Sahara Next to work collaboratively with clients for cost take-outs,

speed to market and new business opportunities. We bring for our clients a credible and

experienced global leadership team driving service delivery through the next generation

global delivery model.The gamut of services offered by Sahara Next involves:

1. IT Services

2. Web Media

3. Business Process Outsourcing

4. Mobile Interactivity and Application solution

We create VALUE for ALL by providing Quality Consultation, Solutions, Services &

Support while being a Customer Empathic Organization.

Sahara Next is engaged in activities with Recurring, Mid-term & Long-term RETURNS

while ensuring Customer Delight at all levels. We have standardized processes,

integrated architectures, and delivered significant cost savings in multiple project-based

enterprise IT client relationships. Our domain expertise spans a diverse set of systems and

technologies that comprise enterprise IT infrastructures of organizations. Sahara Next

believes in QUALITY LEADERSHIP through robust methodologies and processes,

consolidate years of software development and maintenance experience in delivering

support for enterprise applications and products.

Our mature process frameworks effectively reduce risk and unpredictability across the

software development life cycle and flexibly integrate with our clients' processes. Our

quality systems create strong predictive and diagnostic focus, delivering measurable

35

performance to clients' 'Critical to Quality' parameters - faster turnaround, higher

productivity and on-time, and first-time-right deliveries. We provide full visibility on our

projects through integrated web-based project management and monitoring tools.

Sahara Next is an ISO 9001:2000 certified organization

At Sahara Next. we believe in "knowing what we know and profiting from it". We

therefore channelize our energy in generating value from our intellectual and knowledge-

based assets.

Our KNOWLEDGE MANAGEMENT INITIATIVE (KMI) focuses on achieving

sustained individual and business performance through the synergy of people, processes,

technology, by ongoing learning, unlearning and adaptation. We believe that efficient

knowledge exploitation leads to faster response times, builds a competent organization,

identifies areas for expansion and leads to greater customer satisfaction. Through

continuous knowledge acquisition, retention and augmentation, we ensure that on an

ongoing basis best practices are institutionalized and leveraged to deliver value to our

customers.

OBJECTIVES OF THE STUDY

To study the various deposit schemes of the Sahara India.

To know the customers preferences to the schemes given by the Sahara

India.

36

To study the various rules & regulations of the company regarding deposit

schemes.

To know the conditions of the market in the depositor markets.

To study the revise policies provided to the customers.

SCOPE OF THE STUDY

37

It become quite difficult rather impossible to make judgment about the position of any

business by way of analyze the cost statements of one year. To get a view about the

business happenings, the past data of some years relating to the problem are studied and

is determined. The present study covers a period of two years from March 2007 to March

2008. A large period may prove inconvenient while a shorter period would not give

desired results. A period of four to six years is to be considered to be the optimum one.

RESEARCH METHODOLOGY

38

The procedure adopted for conducting the research requires a lot of attention as it has

direct bearing on the accuracy, reliability and adequacy of results obtained. It is due to

this reason that research methodology, which we used at the time of conducting, the

research needs to be elaborated upon. It provides the researcher criteria by which we can

decide which techniques and procedures will be applicable to a given problem. At the

same times it helps the researcher to clearly state what course of action he selects at the

time of conducting the research and why he select then so that they can be evaluated by

others also.

RESEARCH PROBLEM: -

In research process, the first and foremost step happens to be that of selecting and

properly defining a research problem. A research problem, in general refer to some

difficulty which a researcher experiences in the context of either a theoretical or practical

situation and wants to obtain a solution for the same.

The present project has been undertaken to analyse the various type of deposit schemes of

the Sahara India.

RESEARCH DESIGN: -

A research design is the arrangement of conditions for collection and analysis of data in a

manner that aims to combine relevance to the research purpose with economy in

procedure. In fact research is the conceptual structure within which research is

conducted; it constitutes the blueprint for the collection, measurement and analysis of

data.

SAMPLE DESIGN: -

A sample design is a definite plan determined before any data are actually collected for

obtaining a sample from a given population. The amount of research work is always

limited by shortage of time and resources. Due to these limitations information should be

such that it may be representative of entire universe. So only alternative is of sampling.

39

In present project a sample size of past two years (2006-2007 and 2007-2008) is taken to

study the problem. It has been done due to the time constraint.

DATA COLLECTION: -

In dealing with any real life problem it is often found that data at hand are inadequate,

and hence, it becomes necessary to collect data that are appropriate. The task of data

collection begins after a research problem has been defined and research design chalked

out. While deciding about the method of data collection to be used for the study, the

researcher should keep in mind two types of data viz., primary and secondary.

In present study we have made use of secondary data collected from employees and

customers of Sahara India.

LIMITATIONS

40

The study of competitive firms could not be made. Thus comparative study could not

be possible.

The data could have been analyzed and probed form different angles, interpreted and

studied more deeply, but it could be studied upto a limit. A deeper insight could have

revealed more and better results.

The scope of the present study had to be limited due to paucity of time.

The secret policies of Sahara doesn’t allow us to use more data.

It is only the study of interim of reports.

DATA ANALYSIS AND INTERPRETATION

41

Q.1 Have you any deposit Scheme in Sahara?

Yes No

35 15

Yes No0

5

10

15

20

25

30

35

40

INTERPRETATION

35 respondents have the deposit schemes in the Sahara and rest has not.

Q.2 What kind of schemes you are availing?

Sahara city Sahara life insurance Sahara RD

42

15 20 25

Sahara city Sahara life insurance Sahara RD0

5

10

15

20

25

30

INTERPRETATION

Most of the respondents availing Sahara RD schemes and Sahara Life Insurance

and only 15 respondents availing Sahara city Schemes.

Q.3 Do you think that your money is safe with these deposits?

43

Yes No

40 10

Yes No0

5

10

15

20

25

30

35

40

45

INTERPRETATION

40 respondents feel safe about their money and 10 respondents doesn’t feel so.

Q.4 For what purpose you are availing these schemes?

For life insurance Tax saving Earn interest

44

20 15 15

For life insurance Tax saving Earn interest0

5

10

15

20

25

INTERPRETATION

20 respondents availing the scheme for life insurance purpose and other are for

tax savings and to earn interest.

Q.5 Have your company any loan facilities on your deposits?

45

Yes No

50 0

Yes No0

10

20

30

40

50

60

INTERPRETATION

All respondents says that Sahara provides the loan facility on their deposits.

Q.6 Do you think that deposit schemes of Sahara bank is beneficiary than other banks?

Yes No

46

30 20

Yes No0

5

10

15

20

25

30

35

INTERPRETATION

30 respondents think that Sahara Banking is beneficiary than other banking

services and 20 respondents don’t feel so.

Q.7 what type of investment plan you like to avail?

47

Long term Short term

40 10

Long term Short term0

5

10

15

20

25

30

35

40

45

INTERPRETATION

Most of respondents availing long term plans.

Q.8 Have your company any special plans for children and senior citizens?

Yes No

48

50 0

Yes No0

10

20

30

40

50

60

INTERPRETATION

All respondents says yes to special plans for children and senior citizens.

Q.9 Are you satisfied with the interest amount given on your investments by the

company?

49

Yes No

25 25

Yes No0

5

10

15

20

25

30

INTERPRETATION

25 respondents are satisfied and 25 respondents are not with the interest paid by

the company.

Q.10 Can you invest your money without the lock in period?

Yes No

50

0 50

Yes No0

10

20

30

40

50

60

INTERPRETATION

All respondents says no because company don’t have any plan without lock in

period.

FINDINGS OF THE STUDY

51

Company provides the loan facilities to their customers on their

investments.

Company provides the deposit schemes for all age groups and special

plans for children and senior citizens.

Company has the lock in period.

Company has several deposit plans such as RD, Sahara city, life insurance

etc.

Most of the people are satisfied with the deposit plans and the growth in

their money.

Company also provides the tax rebate on their plans.

Company has their money collector for the Sahara daily schemes.

52

SUGGESTIONS OF THE STUDY

Company should avoid the lock in period.

Company should start some plans for the short term period such as one

year.

Company should improve their advertisements in the market.

Company should introduce their mutual funds plan all over the country.

Company should increase the rate of interest given to the customers.

Company should move fast with their Sahara city homes projects.

53

QUESTIONNAIRE

Q.1 Have you any deposit Scheme in Sahara?

Yes No

Q.2 What kind of schemes you are availing?

Sahara city Sahara Life insurance Sahara RD

Q.3 Do you think that your money is safe with these deposits?

Yes No

Q.4 For what purpose you are availing these schemes?

For life insurance Tax saving Earn interest

Q.5 Have your company any loan facilities on your deposits?

Yes No

Q.6 Do you think that deposit schemes of Sahara bank is beneficiary than other banks?

Yes No

Q.7 what type of investment plan you like to avail?

54

Long Term Short Term

Q.8 Have your company any special plans for children and senior citizens?

Yes No

Q.9 Are you satisfied with the interest amount given on your investments by the

company?

Yes No

Q.10 Can you invest your money without the lock in period?

Yes No

55

BIBLIOGRAPHY

BOOKS

Hand Book of National Securities Depository Limited, Depository

Operation Module- Capital Market And NSDL Overview.

Kothari, C.R., Research Methodology, Vishwa Publications Pvt.

Limited, New Delhi.

Machiraju, H. R., Indian Financial System, Vikas Publishing House

Pvt. Limited, New Delhi, 1999.

Chhabra, Dr. T.N., Business Studies, Arya Publications, New Delhi,

2003.

Avadhani, V. A, Security Analysis And Portfolio Management,

Himalaya Publishing House, New Delhi, 2001.

WEB SITES

www.willyancey.com/firmdata

www.sba.gov/smallbusinessplanner/manage/index.html

www.saharaidnia.com

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