A

STUDY ON
DEPOSITORY SYSTEM
AT

ICICI BANK LIMITED

BY
R. SUMANJALI DEVI
H.T.NO: 1301-20-672-003
SYNOPSIS FOR THE PROJECT TO BE SUBMITTED FOR THE
AWARD OF THE
DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
By

DEPARTMENT OF BUSINESS MANAGEMENT

ANDHRA MAHILA SABHA SCHOOL OF INFORMETIC
(Affiliated To Osmania University)
2020-2022

1
 CHAPTER I
INTRODUCTION

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INTRODUCTION

India has had a vibrant capital market that is more than a century old, and the Indian
shareholders are very much involved in it, which has largely contributed to its economic
growth and development. Two of the major share markets in India, BSE and NSE, are
widely reflective of the pattern of growth of the Indian economy. We can see that a large
numbers of players are stepping into the share bazaar with an expectation of reaping huge
benefits- some for long-term investment purposes and others for windfall profits. Most of
these new players are tech-savvy and constantly in shortage of time.
Besides an economic slowdown, the Covid pandemic has brought millions of new
investors into the country's stock markets. These newbie investors, have ventured into the
market, via the DEMAT route. As per SEBI data, close to 6.3 million (63 lakh) new
Demat, or dematerialised, accounts have been opened during the April-September 2020
period, representing an increase of 130 per cent on a year-on-year basis.
Modernization in the trading and settlement system has been witnessed in the capital
market through automated trading mechanism of Demat. The advent of Electronic trading
and settlement has brought in transparency in trading and has eliminated risks associated
with Bad Delivery and handling huge load of paperwork. The country has made a
remarkable growth in the capital market by switching over to electronic trading.
Indian investor community has undergone sea changes in the past few years. India
now has a very large investor population and ever increasing volumes of trades. However,
this continuous growth in activities has also increased problems associated with stock
trading. Most of these problems arise due to the intrinsic nature of paper based trading
and settlement, like theft or loss of share certificates. This system requires handling of
huge volumes of paper leading to increased costs and inefficiencies. Risk exposure of the
investor also increases due to this trading in paper.
The main problems faced by the investors in general and FIIs in particular were:

 Inordinate delays in transfer of securities,

 Return of share certificates as bad deliveries on account of forged

signature/mismatch of signature or fake certificate/forged transfer deed,

 Delay in the receipts/non-receipts of securities after allotment/refund

orders to non -allottees,

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  Delay in getting duplicate shares/debentures certificates, and

 Inadequate infrastructure in banking and postal segments to large volume

of application and storage of share certificates.

To overcome this problem of large number of transfer deeds and shares certificates, the
concept of jumbo transfer deed and jumbo certificate had been introduced. In a jumbo
transfer deed only one transfer deed is to be executed for a large number of transfers,
while a jumbo certificate reflects a large number of certificates.

However, physical dealings in securities had to be completely eliminated to bring

the Indian stock markets at par with the international markets, through scrip less trading
in which transactions, in securities take place by a book entry method, without the
physical delivery of securities or movement of cheques for payments. The essential part
of scrip less trading is the dematerialization of share certificates through depositories.
All certificates are surrendered to the issuer company that has issued the securities.
On receipt of the certificates through the depository participants and on the advice of the
depository with company has already entered into an agreement, the certificates in respect
of these securities, and the name of beneficial owners whose name is recorded as such
with a depository are deleted. The depository system in India operates with in the frame
work of depositories Act, 1996 and the SEBI Depositories and participants Regulation,
1996.
In the depository system, securities are held in depository accounts, which is more or
less similar to holding funds in bank accounts. Transfer of ownership of securities is done
through simple account transfers. This method does away with all the risk and hassles
normally associated with paper work. Consequently, the cost of transacting in a
depository environment is considerably lower as compared to transacting in certificates.
The depository system also allows distribution of dividends through the RBI’s ECS
system, where ever the participating company has agreed to such service. Other
entitlements such as bonuses, split-ups are also directly affected by the depository into the
investor’s account.

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 The following can be held in the depository (electronic) form:
Shares (listed or unlisted)
Stocks : Government Securities (through a primarydealer)
Bonds : Units of Mutual Funds
Debentures : Commercial Paper
RBI Relief Bonds : Money Market instruments

Comparison of depository system with physical share system

 The risk of loss, mutilation is common for physical certificates and completely
removed in electronic share.
 Handling of a large number of physical certificates is ended in the Depository mode.

 In the electronic segment, there are no bad delivers as in bad delivers as physical
segment.
 There is no stamp duty payable in electronic shares compared to the duty of 0.50% in
the physical segment while transferring ownership.
 In loans against shares, banks usually charge a lower interest rate and margin money
than in the physical share certificate.
 Settlements in the Stock Exchange have commended in the electronic segment an
have proven to be far more efficient and convenient compared to physical shares.

Benefits of Depository system:

In the depository system, the ownership and transfer of securities takes place by
means of electronic book entries. At the outset, this system rids the capital market of the
dangers related to handling of paper. NSDL provides numerous direct and indirect benefits
like:
 Elimination of bad deliveries :
In the depository environment, once holdings of an investor are dematerialised, the
question of bad delivery does not arise i.e. they cannot be held "under objection". In the
physical environment, buyer was required to take the risk of transfer and face uncertainty
of the quality of assets purchased. In a depository environment good money certainly
begets good quality of assets.

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 Elimination of all risks associated with physical certificates :
Dealing in physical securities have associated security risks of theft of stocks, mutilation
of certificates, loss of certificates during movements through and from the registrars, thus
exposing the investor to the cost of obtaining duplicate certificates etc. This problem does
not arise in the depository environment.
 Elimination of stamp duty:
No stamp duty for transfer of any kind of securities in the depository. This waiver extends
to equity shares, debt instruments and units of mutual funds.
 Immediate transfer and registration of securities :
In the depository environment, once the securities are credited to the investors account
on pay out, he becomes the legal owner of the securities. There is no further need to send
it to the company's registrar for registration. Having purchased securities in the physical
environment, the investor has to send it to the company's registrar so that the change of
ownership can be registered.
This process usually takes around three to four months and is rarely completed within
the statutory framework of two months thus exposing the investor to opportunity cost of
delay in transfer and to risk of loss in transit. To overcome this, the normally accepted
practice is to hold the securities in street names i.e. not to register the change of
ownership. However, if the investors miss a book closure the securities are not good for
delivery and the investor would also stand to lose his corporate entitlements.

 Faster settlement cycle :

The settlement cycle follow rolling settlement on T+2 bases i.e. the settlement of trades
will be on the 2nd working day from the trade day. This will enable faster turnover of
stock and more liquidity with the investor.

 Faster disbursement of non-cash corporate benefits like rights, bonus, etc.

NSDL provides for direct credit of non-cash corporate entitlements to an investors
account, thereby ensuring faster disbursement and avoiding risk of loss of certificates in
transit.
 Reduction in brokerage:
By many brokers for trading in dematerialised securities Brokers provide this benefit to
investors as dealing in dematerialised securities reduces their back office cost of handling
paper and also eliminates the risk of being the introducing broker.
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 Reduction in handling of huge volumes of paper:
Periodic status reports to investors on their holdings and transactions, leading to better
controls.
 Elimination of problems related to change of address of investor :
In case of change of address, investors are saved from undergoing the entire change
procedure with each company or registrar. Investors have to only inform their DP with all
relevant documents and the required changes are effected in the database of all the
companies, where the investor is a registered holder of securities.
 Elimination of problems related to transmission of demat shares :
In case of dematerialised holdings, the process of transmission is more convenient as the
transmission formalities for all securities held in a demat account can be completed by
submitting documents to the DP whereas, in case of physical securities the surviving joint
holder(s)/legal heirs/nominee has to correspond independently with each company in
which shares are held.
 Elimination of problems related to selling securities on behalf of a minor :
A natural guardian is not required to take court approval for selling demat securities on
behalf of a minor.
 Facilitate recording of change of address, transmission, etc.:
For all investments held in the a/c, instead of advising each company separately about the
change in address, bank account particulars, nomination, deletion of Name in case of joint
holder, one single advice to the DP takes care of all such changes.
 Ease of portfolio monitoring:
The statement of account periodically sent by the DPs provides the investor the
consolidated position of all his investments in the demat account. This makes it
convenient for an investor to compare and monitor his portfolio

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Reduction in brokerage by many brokers for trading in
dematerialised securities:
Brokers provide this benefit to investors as dealing in dematerialised securities
reduces their back office cost of handling paper and also eliminates the risk of being
the introducing broker.
 reduction in handling of huge volumes of paper

 Periodic status reports investors on their holdings and transactions, leading to

better controls.

 Elimination of problems related to change of address of investor, transmission,

etc. - In case of change of address or transmission of demat shares, investors
are saved from undergoing the entire change procedure with each company or
registrar. Investors have to only inform their DP with all relevant documents
and the required changes are effected in the database of all the companies,
where the investor is a registered holder of securities.
 Elimination of problems related to selling securities on behalf of a minor :
A natural guardian is not required to take court approval for selling
demat securities on behalf of a minor.
 Ease in portfolio monitoring: since statement of account gives a consolidated
position of investments in all instrument

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NEED FOR THE STUDY

Indian stock exchanges nowadays are following screen based trading and electronic
settlement system.
The market width is also enlarged, quantity of investors spread to various distance places
from trading and settlement places.
There are some problems arising in the settlement and transfer system, in stock and share
trading. In this circumstances there are a limited number of studies in this area
Hence there is a need for evaluation of depository system with in the area of investor's
perspective.
The present study is in this direction of research analysis covering role and performance of
DEPOSITORY SYSTEM at ICICI Bank Limited in Hyderabad and factors affecting the
decision making of investors towards depository participant

SCOPE OF THE STUDY

The scope of the study gives a detail description of the following activities:

 Dematerialization of securities
 Online trading procedure
 Investor can assess the company financial strength and factors that
affect the company.
 Scope of study is limited.

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OBJECTIVES OF THE STUDY

This study is for known about stock exchange activities anddematerialisation of

securities.
 To study various benefits of Depositors.
 To study the concept of Dematerialization of shares i.e., procedure, demat
account, transfer of securities and trading and settlement of demat securities.
 To know how trading activity is to be done with the Depository System.
 To know how to open a Demat account.
 To study the trading and settlement procedure in the Exchange with
particular online procedure and manual procedure that existed before online
trading.

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 CHAPTER-II
REVIEW OF LITERATURE

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 Chaudhary & Malik (2011) in their paper “Depository system in India:
An appraisal” supports the views that majority of the participants in the
Indian Securities Market are resided with NSDL with a stake of 57%. It,
therefore, acts as the primary organization with a holding of majority of
participants in the system. The paper also states the fact based on its
findings that the majority of respondents were comfortable with the
prevailing fee structure of depository which is an indicator that the
existing fee structure followed by NSDL is benevolent.
 Bhatt & Bhatt (2012) in their paper entitled “Financial Performance
Evaluation of depositories in India (A comparative study of NSDL &
CDSL)” explores the fact that the trend of electronization of the
operations of the securities market, particularly. Dematerialization, has
enabled the Indian capital market to move leaps and bounds and scale to
unexampled heights. Securities market in India has witnessed growth,
exponentially. The analysis of the growth and progress of NSDL &
CDSL in economic terms, clearly reveals that both the depositories have
shown a remarkable jump in the terms of demat accounts opened;
demated value & quantity of securities, settlement values and quantity
and the number of depository participants. The study reflects that both the
depositories have been working financially smoothly and efficiently over
a period of last eight financial years.
 Olekar&Talwar (2013) in their paper “Online trading & DEMAT account
in India – Some issues” observed the fact that banks normally levied a
lower service charge as against the charges by Depository Participants.
 Kaur (2014) in her paper “Investors preference between DEMAT &
REMAT and awareness regarding depository & its various laws” explains
the depository system of India with special focus on the reasons for
investors preferences between REMAT & DEMAT of securities. To

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 conclude, she adds that the growth rates of DEMAT account holder has
been substantially increasing over a period of few years.
The Indian Government allows holding securities in any form i.e. either
in physical mode or in electronic (DEMAT) form, though with its latest
circulars, SEBI has made it mandatory for all the public limited
companies to have their securities in demat mode only. The respondents,
in her research reveal that dematerialization supports excellent services &
it is convenient to operate as well. Majority of the investors are now
shifting towards dematerialization owing to the immense benefits it offers
and the ease of operation it supports.
 B.K Surya Prakash Rao, B.HariBabu (2016) in their paper “Role and
Growth of NSD (National Securities Depository Limited) In India”
explains that Depository system where a place to deposit something for
safekeeping as bank in which funds or securities are deposited by other
under the terms of depository agreements. The principal function of
depository is to dematerialize securities and enable their transactions in
book-entry form. The securities are transferred by debiting the
transferor’s depositoryaccount and crediting the transferee’s depository
account. The present study is an attempt toknow the role of NSDL in
Indian depository system, analyze the performance and growth of NSDL
for a period of 7 years, i.e. 2006-2012. On the basis of results, it is
concluded thatnumber of beneficiary accounts, depository participants
growth, number of companies available for DEMAT, DEMAT custody
and number of depository participants service centers in NSDL.
 Srinivasa Rao Boyapati (2016) in their paper “A Study On Investors'
Perceptions Towards Dematerialisation And Indian Depository System
With Reference To Krishna And Guntur Districts Of A.P” says that the
present studyis an attempt to explore about dematerialization,
depositories and to know the investors perceptions towardsof

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 Dematerialisation and Indian Depository System with reference to Guntur
and Krishna Districts of AndhraPradesh, India through a survey. On the
basis of results, it is concluded that the statements related toawareness,
opinions, feelings and perceptions of DEMAT A/c holders are dependent.
 M. Sajithra, M. Kannappan (2018) in their paper “A Study on the Role
and Functions of Depositories” observed the fact that various studies have
been carried out to highlight one or the other issue related with depository
System or environment. These studies partially covered the various
aspects of the depository System. Different aspects covered in the earlier
studies are legal framework, rights and obligations of Depositories, role
ofDepository in Stock and capital market and Depository System. All
these studies have been concentrated on one issue or other. But
noconcrete study has been carried out to covered the whole system, as
projected by the end useri.e. investors. The present study has thrown light
on the untouched issues of performance ofthe NSDL and evaluation of
the progress of the Demat System.
 Dr. Shree Bhagwat & Ritesh Om (2018) in their paper “A Study on
Indian Depository System Growth & Role in Indian Financial Market”
explains that there are two depositories NSDL & CDSL are workingin
India. The present study is an attempt to know the role and growth of
their depositories in Indian capital market for 22years (i.e. from March,
1997 to June, 2018). On the basis of results, it is concluded that number
of beneficiary accounts, number of companies for Demat, number of
depository participants, number of depository participant’s centres,
quantity of Demat sharesandvalue of Demat shares of depository
organizations. This paper is divided into six sections namely,
Introduction, Research Methodology, Role of Depositories, Growth and
Comparison of NSDL & CDSL, Findings, and Conclusion.

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 Dr. Rajnikant Kumar (2020) in their paper “Role And Growth Of
Depository System: In Indian Financial Market” explains that the
contribution of the depository mode in the promotion of scrip less trading
in securities through dematerialisation of securities in India and the
contribution the depository system has made in helping to remove the
inherent weaknesses in the traditional system like loss/theft of
certificates, forged/fake certificates, cumbersome and time consuming
procedure for transfer of shares, etc.The study is an attempt to know the
role and growth of depositories in Indian Financial Market for the period
of24 years from 1996-1997 to 2019-2020. On the basis of results, it is
concluded that Number of Beneficiary Accounts, Number of Companies
available for Demat, Number of Depository Participants, Number of
Depository Participants Service Centers, Quantity ofDemat Shares and
Value of Demat Shares of Depository.
 Nithya C Devanand (2021) in their paper “A Study on Central Depository
Services (India) Limited” explains that the Central Depository Services
(India) Limited was started in February 1999 by the Bombay Stock
Exchange Limited (BSE) to provide securities trading in electronic form.
CDSL is the first depository to be listed inIndia atNational Stock
Exchange (NSE) on June 30, 2017. It provides userfriendly, consistentand
secured depository services to all capital market participants to transact
securities in electronic form. CDSL has eliminated the huge paper work
and minimized the risk in securities transactions. CDSL maintains and
services more than three croredemat accounts of investors as on March
31, 2021.Its performance has been analysed by using tools such as trend
analysis, mean, standard deviation, co-efficient of variationand compound
annual growth rate.

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 CHAPTER-III
RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

The data collection methods include both primary and secondary Collection
methods.
 Primary method:
 This method includes the data collected from the personal interaction
with authorized members of ICICI BANK LIMITED in Hyderabad,
and also based on the questionnaire.
 Secondary method:
• The secondary data collection method includes:
• The brochures and printed material provided in internet.
• The information provided in the company website www.icicibank.com

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 CHAPTER-IV
THEORETICAL FRAMEWORK

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Theoretical Framework
Depository System:
A depository is an organization which holds securities (like shares, debentures, bonds,
government securities, mutual fund units etc.) of investors in electronic form at the request of
the investors through a registered Depository Participant. It also provides services related to
transactions in securities. At present two Depositories viz. National Securities Depository
Limited (NSDL) and Central Depository Services (India) Limited (CDSL) are registered with
SEBI. The minimum net worth stipulated by SEBI for a depository is Rs. 100 crore.
As per the available statistics at BSE and NSE, 99.9 per cent transactions take place in
dematerialised mode only. Therefore, in view of the convenience of trading in dematerialised
mode, it is advisable to have a beneficial owner (BO) account for trading at the exchanges.
It is a system whereby the transfer and settlement of scrip’s take place not through the
traditional method of transfer deeds and physical delivery of scrip’s but through the modern
system of effecting transfer of ownership of securities by means of book entry on the ledgers
or the depository without the physical movement of scrip’s.
The new system, thus, eliminates paper work, facilitates automatic and transparent
trading in scrip’s, shortens the settlement period and ultimately contributes to the liquidity of
investment in securities. This system is also known as ‘scrip less trading system’.
Dematerialization or “Demat” is a process whereby your securities like shares,
debentures etc., are converted into electronic data and stored in computers by a Depositor.
Depository functions like a securities bank, where the dematerialized physical securities are
traded and held in custody. This facilitates faster and low cost settlement. Depository is much
like a bank and performs many activities that are similar to a bank. Following table compares
the two:

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Bank Depository

Holds funds in accounts Holds securities in account

Transfers securities between accounts

Transfers funds between accounts

Transfers without handling money Transfers without handling securities

Safekeeping of
Safekeeping of securities”
money

A Depository is like a bank where securities are held in electronic (dematerialised) form. In
India, there are two Depositories -National Securities Depositories Limited (NSDL) and
Central Depository Services Limited (CDSL).
 NSDL and CDSL :

At present there are two depositories in India, National Securities Depository. Limited
(NSDL) and Central Depository Services Limited (CDSL).
• NSDL is the first Indian depository; it was inaugurated in November 1996. NSDL
was set up with an initial capital of US$28mn, promoted by Industrial
Development Bank of India (IDBI), Unit Trust of India (UTI) and National Stock
Exchange of India Ltd. (NSEIL
• Central Depository Services (CDS) it has registered around 20 DPs and has signed
up with 40 companies. It had received a certificate of commencement of business
from SEBI on February 8, 1999. In order to facilitate transfers between investors
having accounts in the two existing depositories in the country the Securities and
Exchange Board of India has asked all stock exchanges to link up with the
depositories. The NSDL and CDS have signed an agreement for inter-

depository connectivity.

DEPOSITORYPATICIPANT (DP)

 What is a DP?

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 In India, a Depository Participant (DP) is described as an Agent of the depository.
They are the intermediaries between the depository and the investors.
 Who can be a DP?
 Public Financial Institutions.
 Scheduled banks.
 RBI Approved Foreign banks operating in India state financial corporations.
 Institutions engaged in providing financial services, promoted by any of the
institutions mentioned above either jointly or severally.
 Custodians of securities who are registered with SEBI.
 Clearing Corporations or Clearing Houses of Stock Exchanges.
 Stock Brokers registered with SEBL.
 Non-Banking Finance Companies.

1. Investors surrenders defaced certificate along with Dematerialisation Request Form

(DRF) to his DP.
2. DP intimates Depository of the request through the system.
3. DP submits the certificate with DRF to registrar.
4. Registrar confirms the Demat from Depository.
5. Registrar validates the request, updates records & informs the Depository.
6. Depository credits the DP a/c & informs DP
7. DP updates the investor’s a/c & informs the investor.

Why should an Investor join a depository?

The present system of trading revolves around movement of paper at all stages, be it
purchases, sales or transfer and sales with the normal risks like delays, loss in transit and bad
deliveries at every stage. The only solution to these problems is trading by the advent of the

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depository. Three things basically considered by Investor while joining Depository which are
Cost, Comfort, Convenience.
Advantages Enjoyed by Investors:

 Faster Transfer of transaction-Transaction take place much faster in electronic form

trading compared to a 30-60 days settlement cycle that usually takes place in the case
of physical transfer of securities.
 Elimination of Bad Deliveries and all risks associated with physical certificate such as
loss, theft, mutilation, forgery etc.
 Easy and Enhanced Liquidity No Stamp Duty on transfer.
 No Postage/Courier Charges.
 Faster Disbursement of corporate benefit like rights, bonus, etc.
 Facilities of Creating Charges on dematerialized shares for granting loans
andadvances against shares.
 No Delay in Transfer of Securities
 Lower Interest on Loans Against Demat Shares
 Nomination Facilities at The Time of Account Opening
 Much Faster Payment on Sale of Shares Minimum Handling of Paper
 No Scope for Forgery/Damage of Share Certificate
 Investors are not required to open multiple accounts just because they have
Spelled their names differently in different companies so long as signature
isconsistent.

Dematerialization Process and Procedure:

Opening a Depository Account

The Investors can open two types of demat accounts. They are:
• Individual Account.
• Corporate Account.

Documents required to be submitted at the time of opening a demat

account:

Individual Investors:

 An application in the prescribed form duly completed.

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  Certified copy of an election-ID card/passport/ration card /PAN card or in the absence
of these documents, an introduction by an existing account holder of the DP giving
the introducer's name, address, and contact number.
 A certified copy of birth certificate and guardian's name, in case of a minor.
 A passport size photograph of each of the applicants with his/their signature/s put
across the photograph/s
 In case of any attestation by a Magistrate / Notary Public / Special Executive
Magistrate, the name, address and telephone number of the Magistrate/Notary
Public/Special Executive Magistrate.
 A copy of the power of attorney, if desired and agreement in the prescribed form duly
executed.

Corporate investors:

 An application in the prescribed form duly completed.

 A certified copy of the Memorandum and Articles of Association of the company.
 A certified true copy of the board resolution authorizing opening of demat account
and listing out the names of the officials authorized by the board to act as authorized
signatory(ies)
 Names, designation of the authorized signatories with specimen sign.
 A copy of power of attorney duly executed.
 In case of attestation by any Magistrate/Notary. Public/Special Executive Magistrate,
their name, address and telephone number.
 Agreement in the prescribed form duly executed.

Additional Requirements for Some Categories of Investors

BO Category Additional Requirement

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Non Resident Indian Nationals or In case of a NRI opening BO a/c singly
persons of Indian origin(NRI) or jointly with another NRI and/or
resident Indian, a declaration by the first
or sole NRI applicant who is eligible to
invest on repatriable basis in terms of
FEMA notification no.20/2000-RB dated
03/05/2002 together with a proof of
residence outside India.
HUF Name of the Karta , if the account is
opened in the name of a HUF

Trust A certified copy of the trust deed along

with the List of authorized signatories
with specimen signatures.
Partnership firm The account has to be opened in the
names of the partners.
Proprietorship firm The account should be opened in the
name of the sole proprietor.
Clearing (CM) Members A certified copy of SEBI
registration along with a conduct
certificate from each of the exchanges
where the CM is a member/registered.

F. I. Investors and Overseas A Certified copy of SEBI/RBI

Corporate Bodies registration.

For NRI’s:
 No approval from the Reserve Bank of India (RBI) is required for opening
aDepository Participant (DP) Account. However, if customers do not hold any shares
at the time of opening the account, enter in the account openingform as follows:
1. Submission of Passport and Valid Visa Copy is mandatoryfor NRI customers for
opening a Depository Participant (DP) Account with effect from 7th May 2007.
2. RBI reference no: No Holdings
3. RBI approval date: Present date

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  If hold shares that were allotted in the primary market (under the DirectInvestment
Scheme), enter in the account opening form as follows:
1. RBI reference no: Under General Permission.
2. RBI approval date: Present date
 If customers are providing their foreign address as their address ofCommunication.
NRI rate card will be applicable to them. Else they can open account in Standard Rate
Card.

Tips for deciding NRI account combinations.

NRI Investments are classified on the following basis:
A. Repatriability and
B. Mode of investment

A. Repatriable
Repatriable funds (i.e. those which can be taken abroad) need to be kept in a
separate bank account, i.e. NRE Bank account. Typically, funds brought in from
abroad are permitted in such an account. Investments made from such funds can
be repatriated, i.e. proceeds from sale or otherwise from such investments can be
taken abroad. Such investments are maintained in a Repatriable Demat account.
B. Non-repatriable
Non-repatriable funds (i.e. those which cannot be taken abroad) need to be kept
separate from repatriable funds in a separate bank account i.e. NRO Bank account.
Investments made from such funds cannot be repatriated, i.e. proceeds from sale
or otherwise from such investments cannot be taken abroad. Such investments are
maintained in a Non-Repatriable Demat account. Money once transferred from
NRE account to NRO account loses its reparability and hence, cannot be
transferred back to NRE account.

Mode of Investment:
A. Portfolio Investment Scheme (PINS)
Portfolio Investment Scheme (PINS) is a scheme of the Reserve Bank of India (RBI)
under which the ‘Non Resident Indians (NRIs)’ and ‘Person of Indian Origin (PIOs)
can purchase and sell shares and convertible debentures of Indian Companies on a
recognized stock exchange in India by routing all suchpurchase/sale transactions

25
 through their account held with a designated Bank Branch. The Designated Bank
maintains a record of all investments done under PINS (PINS portfolio).
B. Non-PINS
Any investment other than under PINS is typically, this includes:
1. Subscription to Primary market offerings (IPOs)
2. Investments made when resident in India.
3. Investments in Mutual funds
4. Investments in derivatives
5. Gifts and Inheritance

Procedure for Demat

 Form
Submit a completely filled up Demat Request Form (DRF) in triplicate for each ISIN
along with defaced physical securities. We have provided you with one blank
Dematerialisation Request Form (DRF). Additional forms are available at any of the
ICICI Bank branches offering Demat Services.

 Filling up the form

 Ensure that security mentioned on the certificates is eligible for Demat. For being
eligible for demat, the company has to sign up with NSDL. You can check eligibility
on www.icicibank.com or ask the nearest Branch,
 Use a separate DRF for each security having a unique International
SecurityIdentification Number (ISIN). Verify the certificates carefully and mention
the correct ISIN. In case two or more sets of certificates of the same security have
different ISIN (this is possible in case of partly paid up shares and non-pariPassu
shares), use separate DRFs for each ISIN. However,you candematerialise multiple
folio nos. of the same pattern of holders relating to the same ISIN under a single DRF.
 Submit certificates under lock-in under separate DRF. Do not mix the same with free
securities. In case of locked-in securities, fill up the lock-in reason & lock-in release
date on the DRF. Amongst lock-in securities belonging to the same ISIN but having
different lock-in release dates or lock-in reason, make separate DRF requests.

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 Demat requests received from client(s) with name(s) not matching exactly with the
name(s) appearing on the certificates merely on account of initials not being spelt out
fully or put after or prior the surname, can be processed. However, this is possible
only if the signature(s) of the client(s) on the DRF tallies with the specimen
signature(s) available with the Issuer or its Registrar. For example, the shareholder
may have opened the depository account in the name of Sushil Ramesh Shah but his
name on the share certificate may appear as S. R. Shah or Sushil R Shah etc.
 The combination and the order of holders’ names on DRF and as printed on the
Certificates should be identical with that in the DP account.
 For example, if the shares are in the name of X, Y (X as first holder and Y and second
holder) it cannot be dematerialised in the account of either X or Y alone. Also if the
shares are in the name of X, they cannot be dematerialised in the account of X, Y (X
as first holder and Y as second holder).
 However, where the combination of holders is the same in the certificates and in the
demat account, and the difference is only in the order in which the name of the
holders appear on the share certificates and in the demat account, dematerialisation is
possible. Here, you have to submit a Transposition Request Form along with the DRF.
The form is also available at the nearest Branch.
 The DRF must be signed by all the account holders and should be in the same order.
The signature on the DRF should match with the specimen signature with ICICI
Bank. If the signature differs, you should sign the DRF in the presence of the Branch
Officer. If you have a doubt that the signature on the DRF may not match with that
registered with the Registrar, you can get the signature on the DRF attested by your
banker.
 The details of certificates such as the folio no. certificate no. & distinctive no. be
filled up correctly on the DRF.

Submitting the form

 You must deface the certificates by putting a stamp or by writing “Surrendered for
Dematerialisation”. However defacing should be done only after checking the
eligibility of security, as defaced securities cannot be sold in physical form. If
defacing has been done by mistake then you should send the same to registrar for
replacement
NSDL Business Rule 11.1.7.:

27
 (The Participant shall ensure that the certificates submitted for dematerialisation are
marked by the Client (customer) with the words. “Surrendered for Dematerialisation”
 Certificates should not be mutilated or defaced in such a way that the material
information is not readable.
 Ensure that the certificates are attached in the same order as mentioned in the DRF.
You should submit the DRF in triplicate. You can submit the DRF at any ICICI Bank
branch. The acknowledgement slip at the bottom of the form will be stamped and
handed over to you after verification by the ICICI Bank official.

Credit in the Demat Account

 The defaced shares along with the DRF are sent by ICICI Bank to the registrar who
will the credit the customer's account. The normal time taken for credit of shares to
the account after confirmation by the Registrar is about 30 days. However the time
taken would vary from one registrar to another over which ICICI Bank has no control.
 To check whether your account has been credited, you can refer to the transaction
statement .The same will be reflected in pending demat balance on receiving your
request. After dematerialisation, the same will be reflected under free balance.
Alternatively you can use the web (register on www.icicibank.com), phone us or visit
the ICICI Bank branch. In case your account does not get credited within a month of
submission, you can either phone us or send an email to
[email protected]
 In case there is a delay beyond 40 days, if you so wish, ICICI Bank can giveyou the
registrar's name and telephone number as well as your Demat RequestNumber
(DRN).

 Rejection of Demat Requests.

 Your request may get rejected for various reasons either at the Central Processing
Office of ICICI Bank or by the Registrar. Dematerialisation is done by the Registrar
only when it is satisfied of genuineness of securities & ownership status.

 On a rejection, the securities are sent back to you stating the reason for the rejection.

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  You can resubmit the certificates for dematerialisation after resolving the reason for
the rejection. Please resubmit on a fresh DRF. Do not use the same DRF on which the
objection was made.

 Transmission-cum-Demat

In case of certificates held jointly, on the death of any one or more of the joint
holder(s) mentioned on the certificate, the surviving joint holder(s) can get the
name(s) of the deceased deleted from the physical certificate(s) and get the securities
dematerialised in the DP account of the surviving holder(s) by submitting the
following documents along with the DRF:
 A copy of the death certificate duly notarized
 A copy of the Succession certificate duly notarized or an order of a court ofCompetent
jurisdiction where the deceased has not left a Will or
 A copy of the Probate or Letter of Administration duly notarized.

Sale / Buy of Securities

Securities transactions can be settled in demat form for the transactions done on stock
exchanges connected to NSDL. At present, NSE, BSE, CSE, DSE, LSE, BgSE, OTCEL
MSE, ISE & ASE are connected toNSDL Trading in dematerialised securities is done
through your broker just like trading in physical securities.
 Sell dematerialised securities
 You can sell your dematerialised securities in any of the stock exchanges. Linked to
NSDL through a broker of your choice.

 You need to give a “delivery instruction to your DP for debit of your depository
account and credit of your broker’s clearing member account.

 You receive payment from the broker for the sale in the same manner you would
receive payment for a sale in the physical mode.

 Buy dematerialised securities

 You can purchase securities in any of the stock exchanges connected to NSDL
through a broker of your choice and make payment to your broker.Make sure you tell
your broker you want only demat shares.

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 Broker receives credit in his clearing account with his DP on the day ofPayout. He
can immediately transfer these securities to your depository account, provided your
account is already active.

 Broker gives instructions to his DP to debit his clearing member account and credit
your depository account.

Getting Instruction Slips (TIFD/IDT booklets)

 You are provided a “Personalized TIFD booklet” at the time of opening the account.
You will need to use slips from this booklet for all your transfers.

 For IDT (Inter Depository Transfer slips), request for the same in writing to the
nearest Branch. The request should be signed in presence of the Branch. Officer.
Ensure you use slips allotted to your demat account only as per 1 business rules of
NSDL.

 Please do not use someone else’s slip since that will not be accepted by the system
and also cannot be processed as per business rules of NSDL.

 Please do not give your blank slip to anyone as this may lead to frauds and associated
complications. If you lose your booklet, report the same in writing (under signature of
all account holders) to the nearest Branch. Immediately.

 If you are nearing exhaustion of all slips in the booklet, you can request for reissue of
a new booklet by visiting nearest bank branch. Submit the request on the requisition
slip present in your existing booklet. Where you are. Unable to present the request on
the requisition slip, you can submit a letter. However, the letter should be signed in
presence of the Branch Officer You can also register for the Internet Banking and
Phone Banking facilities to submit the request on Internet / Phone.

 The booklet will be couriered to you and will reach you within a week from date of
submitting the request.

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  On receiving your booklet, verify that your DPID, DP Account No. and name present
on all slips including the Requisition slip.

 In emergencies where you have exhausted your TIFD/IDT booklet and can) wait for
the time required to fulfill your request for a new booklet, you can: get TIFD/IDT
slips issued across the counter for emergency use.

 For getting an emergency slip from your branch.

 You have to personally visit your home branch

 You have to request for the slip on the prescribed form available at the branch

 TIFD/IDT issued in such a manner is valid only for immediate use.

Filling up an instruction slip (TIFD/IDT)

 The request should be filled up in the appropriate slip issued to you. For transferring
securities to an account within NSDL, use TIFD slips. For transferring securities from
an account within NSDL to an account with CDSL, use IDT slips. There are two
common types of accounts within NSDL - beneficiary accounts (opened by the
normal investors) and clearing member pool accounts (opened by brokers).
Accordingly there are two types of transfers possible with TIFDs. instruction for
transfer of security from a Beneficiary. Account to a Clearing Member Account
(Broker's pool account) is termed as a Market TIFD. This is for delivering securities
to the broker for onward delivery to the stock exchange towards fulfilling settlement
obligations in respect of trades done on a stock exchange (Market Trades).

Details are to be filled up only for Market Trades on a

TIFD slip:
a. CM-BP-ID:
This is the Clearing Member Business Partner ID of the Broker to whom the
securities are to be transferred. The CM-BP-ID is an 8 character code starting with
"IN' provided by NSDL to the clearing member. You should find this out from
your broker. Any incorrect entry can result in transfers to the wrong account.

b. CM Name:

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 This is the name of the Broker to whom the securities are to be transferred. This is
the market type on which the trade has been done by your broker. The stock
exchange has separate segments for each market type in which the orders are
matched e.g. Rolling, Rolling Odd Lot, etc. You should confirm this with your
broker.

c. Market Type:
This is the market type on which the trade has been done by your broker. The
stock exchange has separate segments for each market type in which the orders
are matched e.g. Rolling, Rolling Odd Lot, etc. You should confirm this with your
broker.

d. Settlement no:
This is the settlement no. in which the trade has been done by your broker. This is
a 7-character code. Confirm this with your broker.

You should submit the slip latest by 4 p.m. on business day prior to the execution date.
TIFDs received after 4 p.m. will be accepted on 'Best Effort' basis and ICICI Bank does
not undertake any liability for its non-execution. They may also attract a late charge
(Please refer the rate card). In case of market trades, also ensure that the execution date is
specified such that securities are transferred to the pool account before the exchange pay-
in deadline. Strike out the portion relating to Off-Market Trades.

Example: Off-Market Instructions

Sr. No Date of submission Execution date Pay in deadline Client’s risk
1 19-Oct-07 20-Oct-07 N.A No
2 19-Oct-07 20-Oct-07 N.A No
3 19-Oct-07 20-Oct-07 N.A No

On-Market Instructions
Sr. No Date of submission Execution date Pay in deadline Client’s risk

1 19-Oct-07 19-Oct-07 19-Oct-07 Yes

2 19-Oct-07 (Before 4 pm) 19-Oct-07 20-Oct-07 Yes

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 3 19-Oct-07(After 4 pm) 19-Oct-07 20-Oct-07 Yes
4 19-Oct-07(Before 4 pm) 20-Oct-07 20-Oct-07 No
5 19-Oct-07(After 4 pm) 20-Oct-07 20-Oct-07 Yes
6 19-Oct-07 19-Oct-07 21-Oct-07 Yes
7 19-Oct-07 20-Oct-07 21-Oct-07 No

Details to be filled up only for Off-Market Trades on a TIFD Slip.

DP ID:
This is the Depository Participant ID with whom the target account (the account to which the
securities are to be transferred) is maintained. It is 8-character starting with ‘IN’. You should
find this from the target account holder. Incorrect DP ID may result in transfer of securities to
a wrong account.
DP Name:
This is the name of the Depository Participant with whom the target account ismaintained.
You should find this from the target account holder. Please note that this is not the name of
the account holder.
Client ID:
This is the 8-digit account number of the target account. You should find this from the target
account holder. Any incorrect entry can result in transfers to the wrong account.

Details to be filled up only in an IDT slip.

Depository ID: This is the Depository ID for CDSL. It is “IN000026”.
Client ID:This is the 16-digit account number of the target account (the account to which
the securities are to be transferred). You should find this from the target account holder. Any
incorrect entry can result in transfers to the wrong account.

Submitting the form

You can submit the TIFD at any ICICI Bank branch. Take the acknowledgement copy
after stamping by the ICICI Bank official.
You may issue the instruction well in advance of the date on which you want the
securities to be debited from your account. By giving a future dated instruction you cover the
risk against non-execution of instruction due to lack of time or last minute rush. You should

33
submit the slip latest by 4 p.m. of the business day before the execution date (i.e. there should
be one clear working day gap between the date of submission of the TIFD and the execution
date).
Transfer instructions should not be submitted for execution day as holiday. If there a
holiday in between, instruction should be submitted one day in advance.
Submitting TIFD/IDT through Internet:
 You have to first register for the e-Instruction facility by filling up the prescribed form
available at the branch. You can specify up to five accounts to which you can transfer
securities through Internet/Phone.
 Login to www.icicibank.com using infinity user id and password provided to you.
 Click on required Demat account number appearing on “My Accounts” page of
www.icicibank.com.
 Holdings of the selected demat account will be displayed on the next page.
 The next page will display the target accounts linked with demat account selected in
3.4.3. Select the target account as required by you and click“GO” button.
 Fill up the execution date, ISIN, Quantity and settlement number (If required) on the
next page and click on button “Submit”.
 Next page will display all the details entered by you till now. Please check the same
and click on “Back” button you wish to change the same or on “Confirm” button if
you want proceed.
 A reference number will appear on the next screen, Note the same for future
reference.

Submitting TIFD/IDT through IVR

 You have to first register for the e-Instruction facility by filling up theprescribed form
available at the branch. You need to specify up to five accounts to which you can
transfer securities through Internet / Phone.
 Call up our Phone banking numbersSelect Demat menu from all theoptions read by
IVR. Get yourself authenticated by entering DPID &Demat a/c no, with TPIN
provided to you.
 Enter your demat account number.
 Select the option to submit transfer instructions from Demat menu.
 Next menu will read all the accounts linked to your Demat Account.Press 1, 2 or 3 up
to 5 select the Target Account Number.
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  Enter the last 3 digits of settlement number pertaining to that markettype.
 System will ask for execution date. Enter the execution date in the format dd-mm-
yyyy (for example, to enter 5th June, 2003, enter05062003), System will verify all the
details and will proceed to thenext option if punched in details are correct.
 Enter the numeric digits of the ISIN.
 Enter the quantity to be transferred.
 System will read all the details entered by you along with availablequantity make
appropriate choice by entering 1, 2, 3 or 4.

Submitting TIFD/IDT through "Speak to Transfer"

 You have to first register for the e-Instruction facility by filling up theprescribed form
available at the branch. You need to specify up to five accounts to which you can
transfer your securities through Internet /Phone.
 Call up our Phone banking numbers Select Demat menu from all theoptions read by
IVR. Get yourself authenticated by entering DPID &Demat a/c no. with TPIN revised
to you.
 Select the option 5 of Speak to Transfer to submit transfer instructionsfrom Demat
menu.
 Our Phone Banking Officer will attend to you and will ask for the information
required for transferring your securities.
 After confirmation from your side. Phone Banking Officer will giveTIFD Reference
number for your completed transaction.

Debit in the Demat Account

 There will be a debit your account on the execution date specified in the instruction.
You can check the same in your transaction statement. You can also check the same
on www.icicibank.com or through IVR or visit the nearest Branch. You will also
receive an alert for the success/failure of the transfer on SMS (registration form for
"Mobile Alerts" on www.icicibank.com

Failure to execute Instructions

 An instruction can fail either at the Central Processing Office of ICICI Bank or
atNSDL

35
  A failure can happen at the Central Processing Office on account of signature
mismatch or if the TIFD slip is incomplete or not properly filled up. Please take due
care while filling up the TIFD. There can be a failure at NSDL if your account does
not have the required number of specified shares or problem with the target a/c.
 You will be intimated about the failure through a letter. On receipt of such intimation,
the customer should do the needful in terms of submitting a correctly filled TIFD.

Dematerialization
 Dematerialization is the process of converting the securities held in electronic form in
a demat account to an equivalent number of securities in physical form (certificates)
after debiting the same from the demat account.
 Form
 Submit a completely filled up Remat Request Form (RRF) in triplicate for eachISIN.
Forms are available at any of the ICICI Bank branches.
 Filling up the form
 Ensure that the RRF is completely filled up. Incomplete details may lead to rejection
of the remat request.
 Use a separate RRF for each eligible security. Please ensure that name of the security
and the ISIN number is entered correctly.
 Submit requests for balances under lock-in through a separate RRF. Do not mix the
same with free securities. Amongst lock-in securities belonging to the same ISIN but
having different lock-in release dates or lock-in reason, make separate RRF requests.
 You should mention the lot types whether Jumbo or Market Lot clearly. If the same is
not filled up then the registrar will send certificates in market lot. Youmust have
sufficient free balance in your account for the ISIN for which the RRF is submitted.
 The RRF must be signed by all the account holders and should be in the same order.
The signature on the RRF should match with the specimen signature with ICICI Bank.

Submitting the form

36
  You should submit the RRF in triplicate. You can submit the RRF at any ICICIBank
branch. The acknowledgement slip at the bottom of the form will be s tamped and
handed over to you after verification by the ICICI Bank official.

Receipt of Physical Shares.

 The RRF is forwarded to the registrar. On acceptance of the remat request by the
registrar, your account will be debited. The physical share certificate will be sent
directly to you by the registrar. You can also check the same on www.icicibank.com
or through IVR or phone us or visit the nearest Branch. You will also receive an alert
for the success/failure of your request on SMS (registration form for "Mobile Alerts"
on www.icicibank.com).
 The normal time taken for receipt of the physical shares is within a period of 30 days.
However the time taken would vary from one registrar to another over which ICICI
Bank has no control.
 In case you do not receive the physical shares within a month of submission, you can
either phone us or send an email to [email protected]
 So that we can check with the registrar.
 In case there is a delay beyond 40 days, if you so wish, ICICI Bank can give you the
registrar’s name and telephone number as well as your RematRequest Number
(RRN).

Rejection of Remat Requests

Your request may get rejected for various reasons either at the Central Processing
Office of ICICI Bank or by the Registrar. On a rejection, you will be informed about
the reason for rejection of the request. You can submit a fresh request after resolving
the reason for the rejection.

Pledge
 Securities held in demat form can be pledged/hypothecated by the client to avail of
loan/credit facility. Pledge of securities in NSDL depository requires that both the
borrower (pledgor) and the lender (pledgee) should have a demat account with any of
the DPs with NSDL The facility for Inter Depository pledge (where) pledgor and
pledgee has a demat account with different depositories) is not available.
 Please note that financial transactions are handled outside the depository system.
However, even after the securities are pledged, the pledgor continues to remain

37
 thebeneficiary holder of those securities and will receive benefits of a corporate
action, if any.
 With “Speak to Transfer”, transfer or pledge your Securities by just speaking to our
through our Phone Banking Officer. No need to submit physical instructions at the
Branches. Visit the nearest ICICI Bank branch and register for e-instruction.

Form
There is a common form for all pledge requests given above. Typically, you would need
to use it at the time of creation and at the time of closure of a pledge.
Filling up the form
 There is a common pledge/hypothecation form for all types of instruction.You
must tick the appropriate boxindicate the instruction type.
 You should clearly indicate whether the instruction is for Pledge orHypothecation.
 Ensure that the Pledge form is completely filled up. Incomplete details maylead
to rejection of the pledge request.
 Enter the DP ID and Account number correctly on the space provided on theleft-
hand side of the form. You should enter the counter-party detailscorrectly on the
space provided on right hand side of the form.
 You must fill up the Agreement number as provided by the pledgee. Thisrefers to
the pledge agreement signed between the pledgor and the pledgee.
 You must fill up the Closure date as provided by the pledgee. This isreferred in
the pledge agreement signed between the pledgor and the pledgee
 You must fill up the ISIN & security name of the security to be pledged. If the
shares are under lock-in then you should fill up the lock-in reason and lock-in
release date in the space provided.
 The number of securities should be filled up correctly in the space provided. In
case of pledge creation, you must have free balance in the ISINmentioned.
 The instruction must be signed by all the account holders and should the same
order. The signature on the request should match with the specimen signature with
ICICI Bank.
 Enter the Pledge order number for all types of pledge instructions other
thanpledge creation instruction.

Submitting the form

38
 You can submit the pledge request at any ICICI Bank branch. The
acknowledgement portion will be stamped and handed over to you after
verification by the ICICI Bank official
Execution of the Instruction
The instruction is executed at the Central Processing Office of ICICI Bank. On
execution date, the transaction will be executed and you can check the same in
your transaction statement.
Rejection of Pledge Requests
 Your request may get rejected for various reasons either at the Central
ProcessingOffice of ICICI Bank or by the counter-party. On a rejection at the
CentralProcessing Office, you will be informed about the reason for rejection
of therequest.
 You can submit a fresh request after resolving the reason for the rejection.
 If a creation request is rejected by the counter-party the balance will
gettransferred from the pledged balance to the free balance.

Freezing/Defreezing
 The client has an option to freeze his account à case he does not intend to do any
transaction in the near future. These helps in curbing unauthorized use of demat
account & prevention of frauds. Once freezed, the account can be defreezed only on
the instruction of the account holders.

Defreezing of the account is required to enable the account again for transaction.The
request for freezing &defreezing must be submitted in the prescribed form.

Corporate Benefit Dividend, Bonus or Rights Issue Mergeror

acquisition:
In case the company in which a beneficial owner holds shares in demat form announces any
corporate benefits like bonus, dividend etc., and the beneficial ownerwill receive the same
directly in his demat account or bank account depending onthe nature of the benefit.
 Dividend:
The company/registrar takes a list of beneficial owners from NSDL as on the record
date/book closure date. Based on this list, company makes payment of dividend. If the

39
 company is making the payment through ECS, the company will directly credit the
dividend to the bank account registered by the beneficial owner with the DP under
intimation to the beneficial owner. If the company is making the payment through a
cheque/DD, the bank details will be printed on the dividend warrant. The mode of
payment of dividend etc. is decided by the company itself.
 Bonus:
The bonus securities on the eligible securities in the beneficial owner's demat account
are automatically credited to the beneficial owner's demat account by the
company/registrar under intimation to the beneficial owner. This will be reflected in
the transaction statement for the period. In respect of the physical holdings, the
customer will receive bonus securities in physical form.

 Rights issue:
The beneficial owner will receive an option to subscribe for the eligible number of
securities from the company/registrar. These securities may be in physical form or in
electronic form in the customer's demat account. The customer can exercise the same
in the normal course. While exercising the option (in respect shares both in physical
or electronic form), the customer may mention the demat account in which the
securities allotted are to be credited provided the company is available for demat with
NSDL. Alternatively, the customer can also ask for the securities in physical form.
 Merger or acquisition:
Securities in the beneficial owner's demat account is automatically credited
anddebited by the company/registrar as per pre-declared ration under intimation to the
beneficial owner. This will be reflected in the transaction statement for theperiod .

Demat Account Statement

If there is a transaction in the previous 30 days. Then transaction statement is sent to
customer. If there is no transaction in the previous 30 days but more 90 days have passed
since ending date of the last statement sent to the customer, a quarterly statement is sent if
there are some holdings in the customer’s account.
Customers who have opted for transaction statement “through e-mail” will get their
statements by 1 week of next month.

40
 At the end of financial year, they will get a physical transaction-cum-holding
statement for the entire year by 25th of April. In addition, they will receive a physical copy of
the annual statement to assist them in filing income tax returns.
The e-mail statement will be authenticated by a digital signature obtained from at
Certifying Authority under the Information Technology Act, 2000. This will allow customers
to verify that the statement is sent by ICICI Bank only and that the contents in the statement
issame and not altered during transmission.
It may be noted that on being registered for receiving statements by e-mail, theAnnual service
charge will be lower by Rs. 50/- per annum starting from when it is next due.
Customer can receive their account statement by e-mail and can also see the updated
statement on www.icicibank.com.

Demat services
ICICI Bank Demat Services boasts to offer best of the class services to their
customers they offer the following features:
I. E-Instructions:
Customers can transfer securities 24 hours a day. 7 days a week through Internet &
Interactive Voice Response (IVR) at a lower cost. Now with “Speak to transfer”,
customers can also transfer or pledge instructions through bank’s customer care
officer.
II. Consolidation Demat Account:
Dematerialise physical shares in various holding patterns and consolidate all such
Scattered holdings into primary demat account at reduced cost.
III. Digitally Signed Statement:
Receive account statement and bill by email.
IV. Corporate Benefit Tracking:
Track dividend, interest, bonus through account statement.
V. Mobile Request:
Accesses demat account by sending SMS to enquire about Holdings, Transactions,
Bill & ISIN details.
VI. Mobile Alerts:
Receive SMS alerts for all debits/credits as well as for any request which cannot be
processed.

41
  Dedicated customer care executives specially trained at call centre, to handle all their
queries.
 Countrywide network of over 235 branches, you are never far from an ICICI Bank
Demat Services outlet.

Customers will find bank’s service charges very competitive – offering the best value for
your money

Registration for Internet/Phone Access & e-instructions.

To increase convenience to the customers while reducing work load at your end in handling queries,
there is a facility for the customer to directly access his demat account 24 hours a day, 365 days a year
through the internet and through phone.

 INTERNETFacilities available on www.icicibank.com

 View transaction statement
 View holdings
 View status of requests submitted-TIFD/IDT, Demat, Pledge,Remat
 View account details
 Get the ISIN for a Security
 Get Settlement Details
 Request for a TIFD booklet
 Pay his Demat bill online
 e- Instructions-facility to transfer securities

 Phone – Interactive Voice Response (IVR)

 Details of last few transactions.
 Details of holdings.
 Request for a TIFD booklet.
 Get ISIN for a security.
 Get status of requests submitted-TIFD/IDT, Demat, Pledge, Remat
 e- Instructions facility to transfer securities

 Mobile Banking
42
With Mobile Banking you have an option to remain updated while you are on the move,
without even having to make a phone call or a visit or logging on theInternet.
ICICI Bank Mobile Banking for Demat Accounts can be divided into twoBroad categories:
• Request Facility
• Alert Facility
The registration is common for both facilities. Please fill Mobile Alerts Registration
Form and submit to any ICICI Bank branch offering demat services. The facility is
completely FREE. You are not charged a single rupee by ICICI Bank for alerts received by
you.

Request Facility
Customers who have already registered their mobile number for Mobile Alerts can
immediately start using this facility. Please note, this is a FREE service. Some features of this
service are:
 Holdings Enquiry
 Transaction Status
 Bill Details
 Request for ISIN

Alert Facility
Through this facility, you will receive a mobile alert in the form of SMS whenever there
is a significant event in your demat account. You will receive mobile alerts when shares have
got credited in your account or if there is an issue. For instance you get Alerts for:
 When your TIFD/IDT gets successfully processed or fails.
 For TIFD/IDT rejection reasons.
 For Pledge creation and Closure request.
 For Shares given for demating has credited or rejected in your demat account.
 For Remat request given and processed successfully.
 Credits shares from any other party to your account.
 For any corporate action taken in your account.

Account Security
Holding securities in demat account is quite like having money in your bank account.
You need to exercise all the precautions in demat transactions as you do in your bank
account.

43
 • Please keep the TIFDADT/Pledge booklet safely and do not lend, slips to
anyone.
• Do not share the details of your Demat account with anyone else.
• Accept the TIFD/IDT/Pledge booklet from the DP only if it a pre-printed
serial number as well as your Demat account number pre-stamped on each
slip.
• Do not sign on a TIFD/IDT/Pledge slip unless it is completely filled up.
• Please check all your transaction statements carefully to see whether all debits
were authorized by you and whether all credits belong to you.
• If possible use the web/email facility to check your transactions as frequently
as you can.
• When you are writing your instructions on the TIFD/IDT/Pledge slip, strike
out the empty space on the slip.
• Give account freeze instructions to ICICI Bank if you do not intend to operate
your account for a long time. Even while your account is frozen, the system
allows automatic credit of securities to you. Give ‘account defreeze’
instructions whenever you want to resume operations of your demat account.
• Intimate your DP regarding any discrepancies in the account.

Closure of Account
If you need to close your demat account, you should make the request for the same in the
prescribed form. The account closure form is available at the nearest Branch. Submit the duly
filled up form at the nearest Branch. Please ensure that:
 There are no holdings in the account or you have requested for transfer of all holdings
in your account closure request.
 You have paid all your dues: Ask for a provisional statement of charges from the
branch. You should pay the amount due as per this statement before your account can
be closed.
 Charges on transferring securities on closure of the account are the same as for normal
transfers. Earlier the NSDL portion was waived but now NSDL has withdrawn this
waiver.

44
Competitor’s:

Bank Demat Account Charges (3-in-1 Account Charges)

Rank Broker Acct Demat AMC Brokerage (Eq Active
Opening Delivery) Clients
Fee
1 ICIC direct Rs 0 Rs 300 (from 2nd 0.55% 3,031,192
(Free) year)
2 Kotak Securities Rs 0 Rs 600 0.25% or Rs 20 1,256,001
(Free) whichever is higher
3 HDFC Securities Rs 999 Rs 750 0.50% 1,141,264
4 SBI Securities Rs 850 Rs 350 0.50% 635,384
5 Axis Direct Rs 900 Rs 650 0.50% 422,358
6 IDBI Capital Rs 500 Rs 450 0.50% 66,639
7 YesSecurities Rs 999 Rs 500 0.45% 28,583

Kotak Bank Demat and Trading Account

Founded in 1994, Kotak Securities is a subsidiary of Kotak Mahindra Bank. Kotak 3-in-1
account comes with online trading and investment, investment through personal relationship
manager, research and trading tips, portfolio analysis and many other features.

. Kotak Securities Demat offers multiple benefits to the clients. Some of them are

 Opening an Account with Kotak Securities is quite easy. You just need to fill in the
application and upload the documents and you are done.
 When it comes to IPO investments, the Kotak Securities can be one of the best
choices. IPO information is made available by this broker quite early so that the
interested investors can take part in it.
 It is also good for investors looking for long-term investment. It is secure, having
wide experience and a range of products to diversify your investment.
 Kotak Securities also provides portfolio management services to clients. It takes care
of the complete portfolio from analyzing investors’ profiles to choosing the
investment vehicles and then monitoring the same.

45
  With this Demat account, you get brokerage services at very reasonable charges. You
can trade different assets by paying low brokerage charges.
 You can trade in bulk as well as in retail as per your choice.

HDFC Bank Demat and Trading Account

HDFC started offering the demat account in the year 2000 and held the position of 3 rdlargest
full-service broker in India.

For HDFC bank account holder, it is very convenient to open a 3-in-1 account and start
investing in the Stocks, Mutual Funds, Corporate FD's, NCD, Bonds and many more
financial instruments online as well through branches or relationship manager.

HDFC demat brokerage charges are highest among the industry. They charge premium
brokerage for their 3-in-1 account, research and local support through bank branch offices.

This Demat helps in different ways. Some of the most crucial benefits that it brings to the
table are –

 There are no account opening charges for HDFC Securities Demat Account
 The annual maintenance fees are also waived off for the first year
 There are low brokerage charges
 You can get access to multiple trading platforms like HDFC Securities Mobile App,
Trading Terminal & more. They are highly advanced and loaded with rich technical
features and tools.
 HDFC Securities Demat provides a shorter settlement period.
 The liquidity is quite high as well which helps in trading smoothly.
 You can invest in different investment options – mutual funds, IPOs, shares,
commodities, currencies, and others.

SBI Bank Demat and Trading Account

SBI offers online trading and investment services through SBI 3-in-1 Account. SBI demat
account advantages include its reach to rural areas, strong research and advisory, online
trading platform, a wide range of investment options and local customer service.

If you already have a bank account with SBI, go ahead and open a Demat account with them.
It is simple and makes stock market investment and trading very easy.

 SBICap Securities has flexible brokerage plans.

46
  They charge 0.50%for trading in equity delivery

 They provide Demat Services by this customer can handle over a physical certificate
and DRF (Demat Request forms) in any branch; customers can transform their
physical certificate to electronic form.

 An Initial Public Offer (IPO) is the initial offer for the public to sell private shares to
the private enterprise.

 In accordance with the new SEBI guidelines, you can perform investment in the IPO
via the ASBA account. By visiting one of our branches, you can invest in IPO.

 SBICap Securities provides an easy and transparent way of buying and reselling units
of mutual funds.

 They provide buying and selling on exchange ETFs (S&P CNX Nifty, BSE Sensex,
CNX Bank Index, CNX PSU Bank Index, etc.).

 It offers broad exposure to investment companies, on an easy and real-time basis, at a

lower cost, both to the stock market and certain sectors.

Axis Bank Demat and Trading Account

Axis bank is a fast-growing private bank. Axis bank 3-in-1 account offers investing in the
stock market as well as many other financial products like mutual funds, FD, Insurance etc.
Axis Direct website and mobile app allow customers to invest online and manage demat
account online.

Research reports, trading tips, dedicated relationship manager and 3-in-1 account are among
the major advantages of Axis Bank Demat account.

 Axis Direct Account Opening Charges are Rs 900. It is on higher side as compared to
the other broking services providers.

 Moreover, an additional charge of Rs.650 also needs to be paid so as to hold your

account However, the customer don’t need to pay any maintenance charges for the
Demat account.

 The source of the reservoir is CDSL and NSDL.

 They help the lowest cost of the transaction.

 The broking house will also give you an SMS debit and credit alert facility.

 Apart from this, customers need to maintain the amount of margin money which is
Rs.25,000. The margin money can increase the profitability of customers.

 They provide buying and selling on exchange ETFs (S&P CNX Nifty, BSE Sensex,
CNX Bank Index, CNX PSU Bank Index, etc.).

47
  It offers broad exposure to investment companies, on an easy and real-time basis, at a
lower cost, both to the stock market and certain sectors.

Comparisons of competitor’s demat account

 OVERVIEW :
Overview ICICI HDFC Kotak Axis Direct SBI Cap
Direct Securities Securities Securities
Company Type Public Public Public Private Public
Broker Type Full Service Full Service Full Service Full Service Full Service
Broker Broker Broker Broker Broker

Headquarters Mumbai, Mumbai, Mumbai, Mumbai, Mumbai, India

India India India India
Founder Vijay Dhiraj Relli Jaideep Arun Arun Mehta
Chandok Hansraj Thukral
Established yr. 1994 2000 1994 2011 2006

 DEMAT SERVICES:
Demat Services ICICI Direct HDFC Kotak Axis Direct SBI Cap
Securities Securities Securities
Depository Source NSDL & NSDL & NSDL & CDSL & CDSL &
CDSL CDSL CDSL NSDL NSDL
Account Opening Zero Rs 999 Rs 750 Rs 900 Rs 850
Charges
Demat AMC Rs 300 (from Rs 750 Rs 600 Rs.650 per Rs 350
Charges 2nd year) annum
Trading AMC Rs 0 (Free) Rs 0 Rs 0 (Free) Free Free
Charges
Margin Money 75% Margin 75% Margin 75% Margin 75% Margin 75% Margin

 OFFERS :
Offers ICICI HDFC Kotak Axis SBI Cap
Direct Securities Securities Direct Securities
Free Demat Account ✔ ✖ ✔ ✖ ✖
Free Trading Account ✖ ✖ ✖ ✖ ✖
Discount on Brokerage ✖ ✖ ✖ ✖ ✖

Trading Happy Hours ✔ ✔ ✔ ✖ ✖

Flexible Brokerage Plans ✔ ✔ ✔ ✔ ✖

1 Month Brokerage Free ✖ ✖ ✖ ✖ ✖

Holiday Offers ✖ ✖ ✖ ✖ ✖

48
Referral Offers ✔ ✖ ✔ ✖ ✖
Zero Brokerage for Loss Making ✔ ✔ ✔ ✖ ✖
Trades

 SERVICES :
Services ICICI HDFC Kotak Axis Direct SBI Cap
Direct Securities Securities Securities
Demat Services ✔ ✔ ✔ ✔ ✔
Trading Services ✔ ✔ ✔ ✔ ✔
3 in 1 Account ✔ ✔ ✔ ✔ ✔
Intraday Services ✔ ✔ ✔ ✔ ✔
IPO Services ✔ ✔ ✔ ✔ ✔
Stock Recommendation ✔ ✔ ✔ ✔ ✔
Robo Advisory ✔ ✖ ✖ ✖ ✖
PMS ✔ ✔ ✔ ✔ ✔
Trading Institution ✔ ✖ ✖ ✖ ✖
Trading Exposure Upto 5x Upto 5x Upto 5x Upto 5x Upto 5x

CHAPTER-V
INDUSTRY PROFILE
&
COMPANY PROFILE

49
INDUSTRY PROFILE
A bank is a financial institution that accepts deposits and channels those deposits into
lending activities. Banks primarily provide financial services to customers while enriching
investors. Government restrictions on financial activities by banks vary over time and
location. Banks are important players in financial markets and offer services such as
investment funds and loans. In some countries such as Germany, banks have historically
owned major stakes in industrial corporations while in other countries such as the United
States banks are prohibited from owning non-financial companies. In Japan, banks are
usually the nexus of a cross-shareholding entity known as the keiretsu. In France, bank
assurance is prevalent, as most banks offer insurance services (and now real estate services)
to their clients.
Introduction
India’s banking sector is constantly growing. Since the turn of the century, there has
been a noticeable upsurge in transactions through ATMs, and also internet and mobile
banking.
Following the passing of the Banking Laws (Amendment) Bill by the Indian
Parliament in 2012, the landscape of the banking industry began to change. The bill allows
the Reserve Bank of India (RBI) to make final guidelines on issuing new licenses, which
could lead to a bigger number of banks in the country. Some banks have already received

50
licenses from the government, and the RBI's new norms will provide incentives to banks to
spot bad loans and take requisite action to keep rogue borrowers in check.
Over the next decade, the banking sector is projected to create up to two million new jobs,
driven by the efforts of the RBI and the Government of India to integrate financial services
into rural areas. Also, the traditional way of operations will slowly give way to modern
technology.

Market size
Banking assets in India touched US$ 1.8 trillion in FY13 and are anticipated to cross US$
28.5 trillion in FY25.
Bank deposits have grown at a compound annual growth rate (CAGR) of 21.2 per cent over
FY06–13. Total deposits in FY13 were US$ 1,274.3 billion.
Total banking sector credit is anticipated to grow at a CAGR of 18.1 per cent (in terms of
INR) to reach US$ 2.4 trillion by 2017.
In FY19, private sector lenders witnessed discernable growth in credit cards and personal
loan businesses. ICICI Bank witnessed 191.6 per cent growth in personal loan disbursement
in FY19, as per a report by Emkay Global Financial Services. Axis Bank's personal loan
business also rose 49.8 per cent and its credit card business expanded by 31.1 per cent.

Investments
Bengaluru-based software services exporter emphasis Ltd has bagged a five-year contract
from Punjab National Bank (PNB) to set up the bank’s contact centres in Mangalore and
Noida (UP). Emphasis will provide support for all banking products and services, including
deposits operations, lending services, banking processes, internet banking, and account and
card-related services. The company will also offer services in multiple languages.
Microfinance companies have committed to setting up at least 30 million bank accounts
within a year through tie-ups with banks, as part of the Indian government’s financial
inclusion plan. The commitment was made at a meeting of representatives of 25 large
microfinance companies and banks and government representatives, which included financial
services secretary Mr. GS Sandhu.
Export-Import Bank of India (Exim Bank) will increase its focus on supporting project
exports from India to South Asia, Africa and Latin America, as per Mr.YaduvendraMathur,
Chairman and MD, Exim Bank. The bank has moved up the value chain by supporting
project exports so that India earns foreign exchange. In 2012–13, Exim Bank lent support to

51
85 project export contracts worth Rs 24,255 crore (US$ 3.96 billion) secured by 47
companies in 23 countries.

Government Initiatives
The RBI has given banks greater flexibility to refinance current long-gestation project
loans worth Rs 1,000 crore (US$ 163.42 million) and more, and has allowed partial buyout of
such loans by other financial institutions as standard practice. The earlier stipulation was that
buyers should purchase at least 50 per cent of the loan from the existing banks. Now, they get
as low as 25 per cent of the loan value and the loan will still be treated as ‘standard’.
The RBI has also relaxed norms for mortgage guarantee companies (MGC) enabling
these firms to use contingency reserves to cover for the losses suffered by the mortgage
guarantee holders, without the approval of the apex bank. However, such a measure can only
be initiated if there is no single option left to recoup the losses.
SBI is planning to launch a contact-less or tap-and-go card facility to make payments
in India. Contact-less payment is a technology that has been adopted in several countries,
including Australia, Canada and the UK, where customers can simply tap or wave their card
over a reader at a point-of-sale terminal, which reads the card and allows transactions.
SBI and its five associate banks also plan to empower account holders at the bottom
of the social pyramid with a customer call facility. The proposed facility will help customers
get an update on available balance, last five transactions and cheque book request on their
mobile phones.

Road Ahead

28, 2019 India is yet to tap into the potential of mobile banking and digital financial
services. Forty-seven per cent of the populace have bank accounts, of which half lie dormant
due to reliance on cash transactions, as per a report. Still, the industry holds a lot of promise.
India's banking sector could become the fifth largest banking sector in the world by
2020 and the third largest by 2025. These days, Indian banks are turning their focus to
servicing clients and enhancing their technology infrastructure, which can help improve
customer experience as well as give banks a competitive edge.
Exchange Rate Used: INR 1 = US$ 0.0163 as on OctoberThe level of government
regulation of the banking industry varies widely.

52
Traditional banking activities
Banks act as payment agents by conducting checking or current accounts for
customers, paying cheques drawn by customers on the bank, and collecting cheques
deposited to customers' current accounts. Banks also enable customer payments via other
payment methods such as telegraphic transfer, EFTPOS, and ATM.
Banks borrow money by accepting funds deposited on current accounts, by accepting
term deposits, and by issuing debt securities such as banknotes and bonds. Banks lend money
by making advances to customers on current accounts, by making installment loans, and by
investing in marketable debt securities and other forms of money lending.
Banks provide almost all payment services, and a bank account is considered
indispensable by most businesses, individuals and governments. Non-banks that provide
payment services such as remittance companies are not normally considered an adequate
substitute for having a bank account.
Banks borrow most funds from households and non-financial businesses, and lend
most funds to households and non-financial businesses, but non-bank lenders provide a
significant and in many cases adequate substitute for bank loans, and money market funds,
cash management trusts and other non-bank financial institutions in many cases provide an
adequate substitute to banks for lending savings to.

Entry regulation
Currently in most jurisdictions commercial banks are regulated by government entities and
require a special bank license to operate.
Usually the definition of the business of banking for the purposes of regulation is extended to
include acceptance of deposits, even if they are not repayable to the customer's order—
although money lending, by itself, is generally not included in the definition.
Unlike most other regulated industries, the regulator is typically also a participant in the
market, i.e. a government-owned (central) bank. Central banks also typically have a
monopoly on the business of issuing banknotes. However, in some countries this is not the
case. In the UK, for example, the Financial Services Authoritylicenses banks, and some
commercial banks (such as the Bank of Scotland) issue their own banknotes in addition to
those issued by the Bank of England, the UK government's central bank.

Accounting for bank accounts

53
Bank statements are accounting records produced by banks under the various accounting
standards of the world. Under GAAP and IFRS there are two kinds of accounts: debit and
credit. Credit accounts are Revenue, Equity and Liabilities. Debit Accounts are Assets and
Expenses. This means you credit a credit account to increase its balance, and you debit a
debit account to decrease its balance.
This also means you debit your savings account every time you deposit money into it (and the
account is normally in deficit), while you credit your credit card account every time you
spend money from it (and the account is normally in credit).
However, if you read your bank statement, it will say the opposite—that you credit your
account when you deposit money, and you debit it when you withdraw funds. If you have
cash in your account, you have a positive (or credit) balance; if you are overdrawn, you have
a negative (or deficit) balance.
The reason for this is that the bank, and not you, has produced the bank statement. Your
savings might be your assets, but the bank's liability, so they are credit accounts (which
should have a positive balance). Conversely, your loans are your liabilities but the bank's
assets, so they are debit accounts (which should also have a positive balance).
Where bank transactions, balances, credits and debits are discussed below, they are done so
from the viewpoint of the account holder—which is traditionally what most people are used
to seeing.

Economic functions
Issue of money, in the form of banknotes and current accounts subject to cheque or payment
at the customer's order. These claims on banks can act as money because they are negotiable
and/or repayable on demand, and hence valued at par. They are effectively transferable by
mere delivery, in the case of banknotes, or by drawing a cheque that the payee may bank or
cash.
Netting and settlement of payments – banks act as both collection and paying agents for
customers, participating in interbank clearing and settlement systems to collect, present, be
presented with, and pay payment instruments. This enables banks to economize on reserves
held for settlement of payments, since inward and outward payments offset each other. It also
enables the offsetting of payment flows between geographical areas, reducing the cost of
settlement between them.

54
Credit intermediation – banks borrow and lend back-to-back on their own account as middle
men.
Credit quality improvement – banks lend money to ordinary commercial and personal
borrowers (ordinary credit quality), but are high quality borrowers. The improvement comes
from diversification of the bank's assets and capital which provides a buffer to absorb losses
without defaulting on its obligations. However, banknotes and deposits are generally
unsecured; if the bank gets into difficulty and pledges assets as security, to raise the funding
it needs to continue to operate, this puts the note holders and depositors in an economically
subordinated position.
Maturity transformation – banks borrow more on demand debt and short term debt, but
provide more long term loans. In other words, they borrow short and lend long. With a
stronger credit quality than most other borrowers, banks can do this by aggregating issues
(e.g. accepting deposits and issuing banknotes) and redemptions (e.g. withdrawals and
redemptions of banknotes), maintaining reserves of cash, investing in marketable securities
that can be readily converted to cash if needed, and raising replacement funding as needed
from various sources (e.g. wholesale cash markets and securities markets).

Law of banking

Banking law is based on a contractual analysis of the relationship between the bank (defined
above) and the customer—defined as any entity for which the bank agrees to conduct an
account.
The law implies rights and obligations into this relationship as follows:
1. The bank account balance is the financial position between the bank and the
customer: when the account is in credit, the bank owes the balance to the customer;
when the account is overdrawn, the customer owes the balance to the bank.
2. The bank agrees to pay the customer's cheques up to the amount standing to the credit
of the customer's account, plus any agreed overdraft limit.
3. The bank may not pay from the customer's account without a mandate from the
customer, e.g. a cheque drawn by the customer.
4. The bank agrees to promptly collect the cheques deposited to the customer's account
as the customer's agent, and to credit the proceeds to the customer's account.
5. The bank has a right to combine the customer's accounts, since each account is just an
aspect of the same credit relationship.

55
 6. The bank has a lien on cheques deposited to the customer's account, to the extent that
the customer is indebted to the bank.
7. The bank must not disclose details of transactions through the customer's account—
unless the customer consents, there is a public duty to disclose, the bank's interests
require it, or the law demands it.
8. The bank must not close a customer's account without reasonable notice, since
cheques are outstanding in the ordinary course of business for several days.
These implied contractual terms may be modified by express agreement between the
customer and the bank. The statutes and regulations in force within a particular jurisdiction
may also modify the above terms and/or create new rights, obligations or limitations relevant
to the bank-customer relationship.
Some types of financial institution, such as building societies and credit unions, may be partly
or wholly exempt from bank license requirements, and therefore regulated under separate
rules.
The requirements for the issue of a bank license vary between jurisdictions but typically
include:
1. Minimum capital
2. Minimum capital ratio
3. 'Fit and Proper' requirements for the bank's controllers, owners, directors, and/or
senior officers
4. Approval of the bank's business plan as being sufficiently prudent and plausible.

56
COMPANY PROFILE

ICICI Bank is India's largest private sector bank with total assets of Rs.1,752,637
crore (US$230 billion) (2022) and profit after tax Rs. 23,339 crore (US$ 3.1 billion) in the
quarter ended March 31, 2022. ICICI Bank currently has a network of 5,275 branches and
15,589 ATMs across India.
History1955
The Industrial Credit and Investment Corporation of India Limited (ICICI)
incorporated at the initiative of the World Bank, the Government of India and representatives
of Indian industry, with the objective of creating a development financial institution for
providing medium-term and long-term project financing to Indian businesses.

Mr.A.RamaswamiMudaliar elected as the first Chairman of ICICI Limited.

ICICI emerges as the major source of foreign currency loans to Indian industry. Besides
funding from the World Bank and other multi-lateral agencies, ICICI was also among the
first Indian companies to raise funds from international markets.

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was
reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering
in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of
Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by
ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at

57
the initiative of the World Bank, the Government of India and representatives of Indian
industry. The principal objective was to create a development financial institution for
providing medium-term and long-term project financing to Indian businesses.

In the 1990s, ICICI transformed its business from a development financial institution offering
only project finance to a diversified financial services group offering a wide variety of
products and services, both directly and through a number of subsidiaries and affiliates like
ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the

emerging competitive scenario in the Indian banking industry, and the move towards
universal banking, the managements of ICICI and ICICI Bank formed the view that the
merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities,
and would create the optimal legal structure for the ICICI group's universal banking strategy.
The merger would enhance value for ICICI shareholders through the merged entity's access
to low-cost deposits, greater opportunities for earning fee-based income and the ability to
participate in the payments system and provide transaction-banking services. The merger
would enhance value for ICICI Bank shareholders through a large capital base and scale of
operations, seamless access to ICICI's strong corporate relationships built up over five
decades, entry into new business segments, higher market share in various business segments,
particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of
ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial
Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was
approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of
Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and
the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's
financing and banking operations, both wholesale and retail, have been integrated in a single
entity.

58
ICICI Group Companies
ICICIGroup ICICI Venture
http://www.icicigroupcompanies.com http://www.iciciventure.com

ICICI Prudential Life Insurance Company ICICI Direct

http://www.iciciprulife.com/public/default.htm http://www.icicidirect.com

ICICI Securities ICICI Foundation

http://www.icicisecurities.com http://www.icicifoundation.org

ICICI Lombard General Insurance Company Disha Financial Counseling

http://www.icicilombard.com http://www.icicifoundation.org

ICICI Prudential AMC & Trust

http://www.icicipruamc.com
Board of Directors

Mr. Girish Chandra Chaturvedi

Non-Executive (part-time) Chairman Mr. Radhakrishnan Nair
………………………………………. Independent Director
Mr. Hari L. Mundra ……………………………………….
Independent Director Mr. B. Sriram
………………………………………. Independent Director
Mr. Lalit Kumar Chandel ……………………………………….
Government Nominee Mr. Uday Chitale
Director Independent Director
………………………………………. ……………………………………….
Mr. S. Madhavan Mr. Sandeep Bakhshi,
Independent Director Managing Director & CEO
………………………………………. …………………………………….
Ms. Neelam Dhawan Mr. Anup Bagchi,
Independent Director Executive Director
………………………………………. …………………………………….
Rama Bijapurkar Mr. Sandeep Batra,
IndependentDirector Executive Director
………………………………………. …………………………………….

Awards – 2020ICICI Bank

 Ms. ChandaKochhar received an honorary Doctor of Laws from Carleton

University, Canada. The university conferred this award on Ms. Kochhar
59
 in recognition of her pioneering work in the financial sector, effective
leadership in a time of economic crisis and support for engaged business
practices.
 Ms. ChandaKochhar featured in The Telegraph (UK) list of '11 most
important women in finance'.
 ICICI Bank has been recognized as one of the 'Top Companies for
Leaders' in India in a study conducted by Aon Hewitt.
 IDRBT has given awards to ICICI Bank in the categories of 'Social
Media and Mobile Banking' and' Business Intelligence Initiatives'.
 ICICI Bank won the award for the Best Bank - Global Business
Development (Private Sector) in the Dun & Bradstreet - Polaris Financial
Technology Banking Awards 2019.
 ICICI Bank was awarded the Certificate of Recognition as one of the Top
5 Companies in Corporate Governance in the 19th ICSI (The Institute of
Company Secretaries of India) National Awards for Corporate
Governance.
 ICICI Bank has been honored as The Best Service Provider - Risk
Management, India at The Asset Triple A Transaction Banking, Treasury,
Trade and Risk Management Awards 2019.
 Mr.RakeshJha has been ranked as the Best CFO in India at the 19th
Annual Finance Asia's Best Managed Companies Poll.
 ICICI Bank has won The Corporate Treasurer Awards 2013 in the
categories of 'Best Cash Management Bank in India' & 'Best Trade
Finance Bank in India'.
 ICICI Bank has been awarded the 'Best Retail Bank in India', 'Best
Microfinance Business' and Best Retail Banking Branch Innovation'
under the 'Excellence in Retail Financial Services awards 2019' by The
Asian Banker.
 Ms.ChandaKochhar, MD & CEO, ICICI Bank, has been named among
Fortune's 50 most powerful women in business for the fourth consecutive
year.
 Ms. ChandaKochhar, MD and CEO received the 'Mumbai Women OfThe
Decade' award by ASSOCHAM.

ICICI Bank, India’s largest private sector bank, today announced the launch of
India’s only credit card with a unique transparent design and a distinctive look.

60
The ‘ICICI Bank Coral American Express Credit Card’ is the latest addition to
the Bank’s exclusive ‘Gemstone Collection’ of credit cards.

Speaking at the launch, Mr. Rajiv Sabharwal, Executive Director, ICICI

Bank said, "At ICICI Bank, it is our constant Endeavour to deliver innovative,
powerful and distinctive value propositions to our discerning customers. We are
delighted to launch the ‘ICICI Bank Coral American Express Credit Card’, the
only card in the country with a youthful, transparent design. Aimed at providing
significant lifestyle benefits, this card re-affirms our commitment to bring forth
innovative services to our customers. We are also introducing a host of exciting
privileges including an introductory extended credit period offer and bonus
reward points on online transactions. We believe this card will be yet another
compelling addition to our Gemstone collection of credit cards."
Ms. SiewChoo Ng, Senior Vice President, Head of Global Network
Partnerships, Asia, American Express International, Inc. said, "We are
delighted to have further strengthened our long and cherished relationship with
ICICI Bank with the launch of the new ICICI Bank Coral American Express
Credit Card. Designed to appeal to value seeking customers, the Card reinforces
our consistent endeavor to provide differentiated products and services to our
customers. The Card offers a wide array of exclusive privileges and features
including additional PAYBACK points on online spend and an innovative
transparent design. At American Express, we always strive to work closely with
our partners to develop the most relevant and compelling products for our
valued card members."

Mr. Sanjay Rishi, President, South Asia, American Express, said, “This
launch marks a further strengthening of the relationship between ICICI Bank
and American Express. We already partner with ICICI Bank on customer
loyalty programs, insurance services, retail banking services as well as
initiatives to expand card accepting merchants. The launch of the ICICI Bank
Coral American Express Card combines the strengths and capabilities of both
organizations to offer an exciting new payment choice to customers.

The ICICI Bank Coral American Express® Credit Card offers a wide range of
attractive benefits to its card members:
 Extended Credit Period; a unique proposition offering card members
ability to carry over the retail purchase balances in first two billing

61
 statements by simply paying the minimum amount due. No interest shall
be charged in such cases and the total amount due shall be payable as per
the third billing statement. TC apply, for complete details please
visit www.icicibank.com.
 4 PAYBACK points per Rs.100 spent on dining, groceries and at
supermarkets, 3 PAYBACK points per Rs.100 of online spends and 2
PAYBACK points per Rs.100 on other spends
 Complimentary movie tickets with 'buy one get one free' offer
on www.bookmyshow.com
 Complimentary visits to Altitude lounges at Mumbai and Delhi airports
 Minimum 19% discount on dining bills at leading restaurants across India
with the ICICI Bank ‘Culinary Treats’ programme.
 No fuel surcharge on fuel transactions at HPCL fuel stations
OVERVIEW ICICI Group
ICICI Group offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels and
through its specialized group companies and subsidiaries in the areas of
personal banking, investment banking, life and general insurance, venture
capital and asset management. With a strong customer focus, the ICICI Group
Companies have maintained and enhanced their leadership positions in their
respective sectors.
ICICI Bank is India’s largest private sector bank with total assets of Rs.
1,752,637 crore (US$230 billion) (2022) and profit after tax Rs. 23,339 crore
(US$ 3.1 billion) in the quarter ended March 31, 2022. ICICI Bank currently
has a network of 5,275 branches and 15,589 ATMs across India, and has a
presence in 19 countries, including India.

ICICI Prudential Life Insurance is a joint venture between ICICI Bank, a

premier financial powerhouse, and Prudentialplc, a leading international
financial services group headquartered in the United Kingdom. ICICI Prudential
Life was amongst the first private sector insurance companies to begin
operations in December 2000 after receiving approval from Insurance

62
Regulatory Development Authority (IRDA). ICICI Prudential Life's capital
stands at Rs. 47.91 billion (as of March 31, 2012) with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. For FY 2012, the
company garnered Rs.190.22 billion of total premiums and has underwritten
over 13 million policies since inception. The company has assets held over Rs.
707.71 billion as on March 31, 2012.
ICICI Lombard General Insurance Company, is a joint venture between ICICI
Bank Limited, India's second largest bank with consolidated total assets of over
USD 91 billion at March 31, 2012 and Fairfax Financial Holdings Limited, a
Canada based USD 30 billion diversified financial services company engaged in
general insurance, reinsurance, insurance claims management and investment
management. ICICI Lombard GIC Ltd. is the largest private sector general
insurance company in India with a Gross Written Premium (GWP) of Rs. 5,358
crore for the year ended March 31, 2012. The company issued over 76 lakh
policies and settled over 44 lakh claims and has a claim disposal ratio of 99%
(percentage of claims settled against claims reported) as on March 31, 2012.

ICICI Securities Ltd is the largest integrated securities firm covering the needs
of corporate and retail customers through investment banking, institutional
broking, retail broking and financial product distribution businesses. Among the
many awards that ICICI Securities has won, the noteworthy awards for 2012
were: Asiamoney `Best Domestic Equity House for 2012; 'BSE IPF D&B
Equity Broking Awards 2012' under two categories:- Best Equity Broking
House - Cash Segment and Largest E-Broking House; the Chief Learning
Officer Award from World HRD Congress for Innovation in Learning category.
IDG India's CIO magazine has recognized ICICI Securities as a recipient of
CIO 100 award in 2009, 2010,2012 and 2012. I-Sec won this awards 4 times in
a row for which the CIO Hall of Fame award was additionally conferred in
2012.

63
ICICI Securities Primary Dealership Limited (‘I-Sec PD’) is the largest primary
dealer in Government Securities. It is an acknowledged leader in the Indian
fixed income and money markets, with a strong franchise across the spectrum of
interest rate products and services - institutional sales and trading, resource
mobilization, portfolio management services and research. One of the first
entities to be granted primary dealership license by RBI, I-Sec PD has made
pioneering contributions since inception to debt market development in India. I-
Sec PD is also credited with pioneering debt market research in India. It is one
of the largest portfolio managers in the country and amongst PDs, managing the
largest AUM under discretionary portfolio management.
I-Sec PD’s leadership position and research expertise have been consistently
recognized by domestic and international agencies. In recognition of our
performance in the Fixed Income market, we have received the following
awards:
 “Best Domestic Bond House” in India - 2007, 2005, 2004, 2002 by Asia
Money
 “Best Bond House” - 2009, 2007, 2006, 2005, 2004, 2001 by Finance
Asia
 “Best Domestic Bond House” – 2009 by The Asset Magazine’s annual
Triple A Country Awards
 Ranked volume leader - by Greenwich Associates in 2010 Asian Fixed-
Income Investors Study. Ranked 5th in ‘Domestic Currency Asian Credit’
with market share of 4.5%, Only Domestic entity to be ranked.
 “Best Debt House in India” – 2012 by EUROMONEY
ICICI Prudential Asset Management is the third largest mutual fund with
average asset under management of Rs. 688.16 billion and a market share
(mutualfund) of 10.34% as on March 31, 2012. The Company manages a
comprehensive range of mutual fund schemes and portfolio management
64
services to meet the varying investment needs of its investor’s through117
branches and 196 CAMS official point of transaction acceptance spread across
the country.
ICICI Venture is one of the largest and most successful alternative asset
managers in India with funds under management of over US$ 2 billion. It has
been a pioneer in the Indian alternative asset industry since its establishment in
1988, having managed several funds across various asset classes over multiple
economic cycles. ICICI Venture is a wholly owned subsidiary of ICICI Bank.

GROUP PHILOSOPHY

As India transforms into a key player in the global economic arena, multiple
opportunities for the financial services sector have emerged. We, at ICICI
Group, seek to partner the country's growth and globalization through the
delivery of world-class financial services across all cross-sections of society.
From providing project and working capital finance to the buoyant
manufacturing and infrastructure sectors, meeting the foreign investment and
treasury requirements of the Indian corporate with increasing levels of
international engagement, servicing the India linked needs of the growing
Indian diaspora, being a catalyst to the consumer finance story to serving the
financially under-served segments of the society, our technology empowered
solutions and distribution network have helped us touch millions of lives.
Vision:
To be the leading provider of financial services in India and a major global
bank.
Mission:
We will leverage our people, technology, speed and financial capital to:
 be the banker of first choice for our customers by delivering high quality,
world-class products and services.

65
  expand the frontiers of our business globally.
 play a proactive role in the full realization of India’s potential.
 maintain a healthy financial profile and diversify our earnings across
businesses and geographies.
 maintain high standards of governance and ethics.
 contribute positively to the various countries and markets in which we
operate.
 create value for our stakeholders.

Towards Sustainable Development

As India's fastest growing financial services conglomerate, with deep moorings
in the Indian economy for over five decades, ICICI Group of companies have
endeavored to contribute to address the challenges posed to the community in
multiple ways.
1) ICICI Foundation for Inclusive Growth: ICICI Foundation for Inclusive
Growth (ICICI Foundation) was founded by the ICICI Group in early 2019 to
carry forward and build upon its legacy of promoting inclusive growth. ICICI
Foundation works within public systems and specialized grassroots
organizations to support developmental work in four identified focus areas. We
are committed to investing in long-term efforts to support inclusive growth
through effective interventions.
2) Disha Counseling: Disha Financial Counseling services are free to all in
areas like financial education, credit counselling and debt management.
3) Technology Finance Group: TFG's programmes are designed to assist
industry and institutions to undertake collaborative R&D and technology
development projects.
4) Read to Lead campaign: ICICI Bank has pledged to educate 1, 00,000
children through the 'Read to Lead initiative. Because education today means a
better life tomorrow.
5) Go Green: Each one for a better earth: ICICI Bank, is a responsible
corporate
66
citizen and believes that every small 'green' step today would go a long way in
building a greener future and that each one of us can work towards a better
earth.
Go Green' is an organization wide initiative that moves beyond moving
ourselves, our processes and our customers to cost efficient automated channels
to building awareness and consciousness of our environment, our nation and our
society.

SEBI (Depositories and Participants) (Amendment) Regulations:

2019,

In exercise of the powers conferred by section 30 of the Securities and

Exchange Board of India Act, 1992 (19 of 1992), the Board hereby makes the
following Regulations to further amend the Securities and Exchange Board of
India (Depositories and Participants) Regulations, 1996, namely:-
1. These Regulations may be called the Securities and Exchange Board of
India (Depositories and Participants) (Amendment) Regulations, 2019.
2. They shall come into force on the date of their publication in the Official
Gazette.
3. In the Securities and Exchange Board of India (Depositories and
Participants) Regulations, 1996, in regulation 7, -
(i) For clause (d), the following clause shall be substituted, namely:-
“The sponsor shall, at all times, hold at least fifty-one per cent. Of the
equity share capital of the depository;”
(ii) In clause, the proviso and the Explanation shall be omitted;
(iii) After clause, the following clauses and Explanation shall beinserted,
namely:-

67
“no person other than a sponsor, whether resident in India or not, shall at any
time, either individually or together with persons acting in concert, hold more
than five per cent. Of the equity share capital in the depository;
Explanation: For the purposes of this clause, -
(i) The expression “person resident in India” shall have the meaning
assigned to it in clause (v) of section 2 of the Foreign Exchange
Management Act, 1999 (42 of 1999);
(ii) The expression “persons acting in concert” shall have the meaning
derived from clause (e) of sub-regulation (1) of regulation 2 of the
Securities and Exchange Board of India (Substantial Acquisition of
Shares and Takeovers) Regulations, 1997;
“ the combined holding of all persons resident outside India in the equity
share capital of the depository shall not exceed, at any time, forty-nine
per cent. Of its total equity share capital, subject further to the following:-
(i) The combined holdings of such persons acquired through the foreign
direct investment route is not more than twenty six per cent. of the total
equity share capital, at any time;
(ii) the combined holdings of foreign institutional investors is not more
than twenty three per cent. Of the total equity share capital, at any time;
(iii) no foreign institutional investor acquires shares of the depository
otherwise than through the secondary market;
“no foreign institutional investor shall have any representation in the Board
of Directors of the depository;”

DEPOSITORY REFORMS
I. Introduction of T + 2 rolling settlement cycle
II. Admission of debt instruments
III. Abolition of account closure charges
IV. SEBI directive to issuers/RTAs

68
V. Common agency
VI. Transfer-cum dematerialization.

RIGHTS AND REFORMS OF SEBI

Enquiry and Inspection:
On being satisfied that it is necessary in public interest/in the interest of
the investors, the SEBI can call for information from, or, make an enquiry or
inspection in relation to the affairs of, the issuer/beneficial owner/depository
participant. It may also give appropriate directions.
 In the interest of investors or orderly development of the securities
market or
 To prevent the affairs of any depository/participant being conducted in a
manner detrimental to the interest of the investors or securities market.
Any person aggrieved by an order of the SEBI may like to appeal to the
SAT.
Penalties
contravention/attempt to or abatement of contravention for the provisions if this
Act/any regulation/bye-laws is punishable with imprisonment for a term up to
five years or with fine, or with both.
Power of the SEBI
 To carry out the purposes of this ACT, the SEBI can make regulations, in
particular, to provide for

69
 The from in which the record is to be maintained/certificate of
commencement of business issued,
 The manner of surrendering a security certificate/creating pledge,
hypothecation by BOs
 Condition /fee payable for the issue of certificate of securities,
 Rights/obligations of depositories/participants/issuers and
 Eligibility criteria for the admission of securities into the depository.

CHAPTER-VI
DATA ANALYSIS
AND
INTERPRETATION

70
DATA ANALYSIS:
Data Analysis is a structured questionnaire for eliciting the requires responses
relating to Depositary services. Respondents chosen for this research are only
those who have a Demat account with any depositary participant. 100
respondents were approached for this purpose out of which 68 were male and
32 were female respondents. All the respondents cooperated with researcher in
filling the questionnaire.
The various responses were classified, and tabulated. A statistical analysis was
made by the researcher. And attempt is made to present the analysis which
covers various aspects of depository services that effect a customer’s opinion
related to depository system’s services.
ICICI Depository System:
Name of DP ICICI

Account opening NIL

Account maintenance Rs 100/-

Receiving Statements by email

Agreement Stamp Paper Rs 100/-

71
 Participant Male Female Total
s
68 32 100
Buy market and Off- market Max. Rs. 500 for debt Nil
instruments
For trade done on www.icicidirect.com

For instruction submitted through internet (e- 0.04% (Min Rs. 10/-)
instructions)
For instruction submitted through Call Centre ( e- 0.04 % ( Min Rs. 15/-)
instructions)
For instruction submitted through Branches 0.04 % ( Min Rs. 30/-)

Rejection/ fails Rs. 30/-

Dematerialisation Rs 35/- for each request form

Extra for each certificate Rs. 2/-

Rematerialisation Rs. 20/- for every 100

Account closing NIL

Pledge creation/ closure/ confirmation 0.02% (Min. Rs. 15/-)

If ICICI bank is not the counter party 0.04 % ( Min Rs. 30/-)

Additional account statements Rs. 20/-

Q1: Classification of respondents on the basis of gender.

Table: 1

72
 Respondents based on gender
Male Female

32%

68%

Interpretation:
Here sample size taken is 100. Out of 100, 68 are male and 32 are
female.
And this clearly shows that males are dominating to invest in share and
take risks. Whereas Females are not taking risk by investing in shares rather
they go for safety investment (i.e.)Mutual Funds where it is a indirect
investmemt in shares and risks involved also less.

Q2. Classification based on age.

Table: 2
Gender/ Male Female Total
Age
<25 4 0 4
25-35 12 0 12
35-45 20 27 47
45-55 23 5 28
>55 9 0 9
Total 68 32 100

73
 Respondents based on age

30 27

23
25
20
20

15 12
9
10
5
4
5
0 0 0
0
<25 25-35 35-45 45-55 >55

Male Female

Interpretation:
In case of age most of the investors are from the age group 35-45.
There are totally 50 investors falling under this category. Where males are 25
and females are 27. Here, females dominate because, Males of this age belongs
to working category and are busy earning people. So on behalf of them they
approve their wife’s to trade (or) open their account in their wife’s name and by
call they trade.
These 35-45 age groups dominate because they like to take more risk and
earn more returns since this peer group is the working group.
The followed by 45-55 age group investors. There are totally 28 investors
falling under this category. Where males are 23 and females are 5. Here they are
standing at next stage door (where they are nearing their retiring stage). So they
like to take the advantage of earning more profit for their future and be safe.
In case of other groups they are Safety considering people. So only few of
those groups invest in share.
Q3. Classification of respondents based on profession.
Table: 3

Gender Male Female Total

/Profession
Business 10 0 10
Govt. staff 7 5 12
House wife 0 20 22
Retired 13 4 17
Service 20 6 26
Teacher 8 3 11
others 2 0 2
Total 68 74 32 100
 Respondents based on profession
20 20
20
18
16
13
14
12 10
10 8
7
8 6
5 4
6
3
4 2
2 0 0 0
0
Business Govt. staff House wife Retired Service Teacher others

Male Female

Interpretation:
Here, most of the investors belong to service category. They are 26
in number. Here, they go for investing because the want to diversify their
capital and to get returns out of that.
Then, followed by House Wife’s because they go as per the
information of their husbands who want their belonging’s to trade. They are
nearly 20in number.
Then, it is the Retired group who play this, as they have capital
with them to invest and they also get the enough capital from their children. So
they take risk and invest to make more profit out of that.
Other occupation persons are very less since they are busy and they
are of idea that they don’t wish to take risk.

Q4. Classification of respondents based on Exposure.

Table: 4

Gender/expose Male Female Total

Advertisement 18 0 18
Relatives 15 12 27
Friends 25 16 41
Others 10 4 14
Total 68 32 100

75
 REspondents based on exposure

45 41

40

35

30 27
25
25
18 18
20 15 16
14
15 12
10
10
4
5 0
0
Advertisement Relatives Friends Others

Male Female Total

Interpretation:
Here, most of the investors are exposed to thr market by their
Friends(41). This is because they are those who work with them and who live
nearby of them. And they have experience and knownledge in mrket.
Then, followed by the Relatives (27) who are the well wishers of them.
And they need them to follow the market.
Then, it is Advertisements and others which make them less expose to the
market.

Q5.Are you aware of Depository System?

Table: 5

Participants Male
Yes 80
No 20
Total 100

76
 Investors Response

100

100 80
90
80
70
60
50
40 20
30
20
10
0

YES NO Total

Interpretation:
Out of the 100 respondents 80% of them say that they are aware of
depository system and rest 20% say that they are not aware of depository
system. 20% of the people coming to the broker wants to invest in stock market,
but they don’t have knowledge of depository system.

Q6. Under which depository are you registered?

Table: 6

Particulars Response
NSDL 77
CSDL 23
Total 100

77
 100 Investors Response
100
90
80
70
60
50
40 23
30
20
10
0

NSDL CSDL Total

Interpretation:
Here, from the above graph we can say that 77% of the people are in
favor of NSDL Depository and 23% are in favor of CSDL Depository.

Q7. Usual modes of trading used by investors?

The Purpose of this statement is to know about the respondent's
preference regarding different methods of trading.

Table: 7
(Shows the frequency and percentage of usual modes of trading used by
different respondents)
Male Female
Modes of trading Frequency Percentage Frequency Percentage Total

Online trading 36 53 10 31.25 46

Trading through broker 22 32.3 15 46.875 37

78
 Both 10 14.7 7 21.875 17
Total 68 100 32 100 100

Investors Response

53
60
46.875
50

32.3
40 31.25

21.875
30
14.7
20

10

0
Online trading Trading through broker Both

Male Female

Interpretation:
From the above table and graph it is clear that the number of males using
online trading mode, trading through brokers and both, is 53%, 32.3% and
14.7% respectively. While in case of Females, there is no significance
difference in the investors using online trading mode, trading through brokers,
and both, which is 31.2%,46.9 and 21.9% respectively.
This shows that each mode of trading has its relative advantages and
disadvantages. No method of trading is absolutely perfect. Choice of the method
depends on the personal choice and convenience of investor

Q8. In which of these Financial Instruments do you invest into?

Financial Instrument Percentage of respondent
Mutual Fund 75 %
Bond 16 %
Online trading 7%
Derivative 2%

79
 Mutual Funds Bond Online Trading Derivatives
2%
7%
16%

75%

Interpretation:
This shows that although the mutual funds market is on the rise yet, the
most favored investment continues to be in the Share Market. So, with a more
transparent system, investment in the Stock Market can definitely be increased.

Q9. Classification of respondents based on the usage of demat account.

Particulars Male Female Total
Daily user 18 3 21
Weekly 30 15 45
Fortnightly 15 12 27

80
 Any other 5 2 7
Total 68 32 100

Response based on usage

45
45
40
35 30
27
30
25 21
18
20 15 15
12
15
7
10 5
3 2
5
0
Daily user Weekly Fortnightly Any other

Male Female Total

Interpretation:
Here, 45 of the investors use weekly. Because they are mainly the
delivery players.
Next, followed by fortnightly users (27) mostly belong to working
category.next,21of them are daily users and remaining 7 belongs to other
category who are long term players.

Q10. Do you have demat account for share trading?

Particulars Response
Yes 67
No 33
Total 100

81
 Investors reponse
100

100
90 67
80
70
60 33
50
40
30
20
10
0

yes no Total

Interpretation:
Here, for the above table and graph 67% of people have demat account
for share trading and remaining 33% don’t have a demat account for their share
trading.

Q11. Are you aware of Demat Services provided by bank?

Particulars Response
Yes 56
No 44
Total 100

82
 Investors response
100

100
90
80 56
70 44
60
50
40
30
20
10
0

Yes No Total

Interpretation:
From the above table and graph 56%of people are aware of demat
services provided by bank and 44% are not aware.

Q12. Are you planning to have a demat account in any bank for your share
trading in future?
Particulars Response
Yes 70
No 30
Total 100

83
 Investors Response
100

100 70
80 48
60
40
20
0

Yes No Total

Interpretation:
Here, from the above graph more than half of the respondents are
planning to have a demat account in any bank for their share trading in future
and remaining are not planning to have demat account in any bank.

Q13. Which type of bank would you like to prefer for pursing demat services.
Particulars Response
Private 50
Public 35
Foreign 15
Total 100

84
 Chart Title
50

50 35
45
40
35
30
15
25
20
15
10
5
0

Private Public Foreign

Interpretation:
From the above graph half of the respondents prefer private banks to
purse their demat services and 35% of the respondents prefer public banks and
15% of respondents prefer foreign banks.

Q14. If private, then will you like to experience ICICI bank demat services.
Particulars Response
Yes 68
No 32
Total 100

85
 Investors response
100

100 68
90
80
70
60 32
50
40
30
20
10
0

Yes No Total

Interpretation:
From the above table and graph more than half of the respondents i.e.
68% are like to experience ICICI bank demat services and 32% of the
respondents are not like experience ICICI bank demat services.

Q15. What do you think the procedure for getting Demat services is?

Particulars Response
Convenient 54
Lengthy 46
Total 100

86
 Investors response
100

100
90
54
80 46
70
60
50
40
30
20
10
0

Convenient Lengthy Total

Interpretation:
From the above , most of the respondents i.e. 54% are think that the
procedure for getting demat services are convenient and 46% are think that the
procedure is lengthy.

Q16. Will you like to get demat services with convenience, security and cost
saving from ICICI bank.
Particulars Response
Yes 65
No 35
Total 100

87
 Investors response
100

100
90 65
80
70
60 35
50
40
30
20
10
0

Yes No Total

Interpretation:
From the above, more than half of the respondents are like to get the
demat services from ICICI bank and remaining don’t like get the demat services
from ICICI bank.

Q17. Do you find the Demat services charges are reasonable?

Particulars Reponses
Yes 60
No 40
Total 100

88
 Investors response
100

100
90 60
80
70 40
60
50
40
30
20
10
0

Yes NO Total

Interpretation:
Here, 60% of the respondents finds that demat services charges are
reasonable and 40%of the respondents find that demat services charges are
unreasonable.

Q18. Is ICICI bank provides convenient trading hours?

Particulars Response
Yes 70
No 30
Total 100

89
 Investors response
100

100 70
90
80
70
60 30
50
40
30
20
10
0

Yes No Total

Interpretation:
Here, 70% of respondents feels that ICICI bank provides convenient
trading hours. And 30% of the respondents don’t feel that ICICI bank provides
convenient trading hours.

Q19. Do you think ICICI bank provides better brokerage plans?

Particulars Responses
Yes 62
No 38
Total 100

90
 Investors responses
100

100
90
62
80
70
60 38
50
40
30
20
10
0

Yes No Total

Interpretation:
Here, 62% of the respondents think that ICICI bank provides better
brokerage plans and 38% of the respondents do not think that ICICI banks
provides better brokerage plans.

Q20. How do you rate services at ICICI bank?

Particulars Response
Very Bad 0
Bad 5
Neutral 50
Good 30
Very Good 15
91
 Investors Response
60

50 50

40

30 30

20
15
10
5
0 0
Very Bad Bad Neutral Good Very Good

Responses

Interpretation:
Here, half of the respondent’s rate the services at ICICI bank are neutral,
next 30% rate the services as good and 15% of the respondents rate the services
as very good

92
 CHAPTER-VII
FINDINGS
CONCLUSION

FINDINGS
 The middle aged group people come to invest in shares at integrated
 All those investors are the persons in Service.
 Most of the investors are exposed to stock trading through Friends.
 Most of the investors are aware of Depository system and they are in the
favor of NSDL depository than CSDL depository.
 Usual modes of trading is used by investors is Online trading.

93
  Many of the consumers want to invest in mutual funds other than bonds
and online trading.
 Most of investors have Demat a/c for share trading and they are aware of
demat services provided by bank.
 50% of investors prefer private banks for pursing demat services and
most of them like to experience ICICI bank Demat Services. 35% of the
investors prefer public banks.
 Most of the investors think that procedure for demat services are
convenient.
 Most of the investors like to get Demat services with convenience,
security and cost saving from ICICI Bank.
 ICICI bank provides the Demat services with convenient trading hours
and also best brokerage plans.
 Main purpose of investment is for returns & liquidity
.

CONCLUSION

Client account holders enjoy the convenience of obtaining immediate electronic

securities transfer. No risks in handling certificates such as bad delivery, fake
securities.
Reduction of paper work for all concerned. Lower costs for investors and listed
companies. Convert physical share certificates into electronic form
(Dematerialization).

94
Convert the securities held electronically into physical form (Rematerialisation).

As a conclude it is clear that DEMAT SERVICES are a boon for mankind who
trades in share market as it is a paperless, time saving, cost saving and secure.
For many customers, demat services are becoming the only way to trade
conveniently with the share market Having the look at the increasing number of
demat account holders it is clear that in future there won't be any problem of
trading in shares.
Due to all these features of demat services the customer is more likely to prefer
the E-shares than holding papers and this may also lead to alienation of the
customers.
In addition, demat services are also becoming a competitive mark for many
banks.
Investor need not open separate demat a/c for demat of debt or instruments
Procedure for demat of debt instruments is same as that of equity shares The
investor has to ensure that before the certificates are handed over to the DP for
demat, he marks ‘surrendered for dematerialization’ on the face of the
certificates.
Therefore, it is imperative to ensure that the customers experience with the
demat account safe and secure.

95
 CHAPTER-VIII
SUGGESTIONS
LIMITATIONS

SUGGESTIONS
 Stock exchange depository services are fully operational.
 The investors greater than 55 ages group must be focused mainly.
 Advertisements must be given more priority to attract the investors,
which is less in case of integrated.
 Stock exchange should concentrate on expanding the investors
market, broker’s network, demat services, geographical expansion
and large trade numbers.

96
  As a depository participant with both NSDL and CDSL stock
exchange has provide better services to investors, brokers, as well as
others who interested in demat.
 The suggestion to exchanges authorities is to take steps to educate
investors about their rights and obligation, try to increase investor’s
confidence.
 The customers should be educated regularly regarding new
technologies of online trading and also other relevant information
regarding demat services.
 Stock exchange has to improve Demat services in consideration of
small investors also.
 However to facilitate trading by small investors in physical mode the
stock exchanges provide an additional trading window, which gives
one time facility for small investors to sell physical shares which are
in compulsory demat list.
 The buyer of these shares has to demat such shares before further
selling.

LIMITIONS
 The data collected from primary and secondary sources and thus is
subjected to slight variation than what the study includes in reality.
 Problems of listing are not covered due to limited time and to keep the
study in manageable limits.

97
 Increasing costs are experienced by shareholders, as the Depository
Participants debit the clients account for holding their account. This is
due to the presence of number of depositories in the country.
 Depository system is not effectively regulated by SEBI. This is evident
from the fact that the clearing and settlement corporation is not handled
by the SEBI.
 The depository system should be made mandatory must, but some
companies keep it as an option and do not consider it important. The
stock market transactions will be uniform only if depository system is
made mandatory in India
 When looking at the share number of securities yet to be dematerialized,
it gives and impression that General Public still lack knowledge of
Depository System in India.
 Discrimination between dematerialized and physical shares will affect
transactions in the market this to be avoided.

QUESTIONNAIRE
1. NAME : ____________________________
2. AGE : ____________________________
3. GENDER : _____________________________
4. PROFESSION : ____________________________
5. CLIENT ID : ____________________________
98
6. Classification of respondents based on Gender.
(a) Male (b) Female
7. Classification of respondents based on age.
(a) Below 25 (b) 35-45 (e) above 55
(c) 35-45 (d) 45-55
8. Classification of respondents based on Profession.
(a) Business (b) Govt. Staff (c)House Wife
(d) Retried (e) Services (f) Teacher
(g) Others.
9. Classification of respondents based on Exposure.
(a) Advertisement (c) Relatives
(b) Friends (d) Others.
10. Are you aware of Depository system?
(a) Yes (b) No
11. Under which depository are you registered?
(a) NSDL (b) CSDL
12. Usual mode of trading used by investors?
(a) Online trading (b) Trading through brokers (c)Both
13. In which of these Financial Instruments do you invest into?
(a) Mutual Funds (c) online Trading
(b) Bond (d) Derivative
14.Classification of respondents based on the usage of Demat a/c.
(a) Daily users (c) Fortnightly
(b) Weekly (d) Any other
15.Dou you have Demat a/c for share trading?
(a) Yes (b) No
16. Are you aware of Demat Services provided by bank?
(a) Yes (b) No

99
 17. Are you planning to have a demat a/c in any bank for your share
trading in future.
(a) Yes (b) No
18. Which type of bank would like to prefer for pursing demat services.
(a) Private (b) Public (c) foreign
19. If private, then would you like to experience ICICI bank demat
services.
(a) Yes (b) NO
20. What do you think the procedure for getting Demat services?
(a) Convenient (b) Lengthy

21. Will you like to get Demat Services with convenience, security and
cost saving from ICICI bank?
(a) Yes (b) No
22. Do you find Demat services charges are reasonable?
(a) Yes (b) No
23. Is ICICI bank provides convenient trading hours?
(a) Yes (b) No
24. Do you think ICICI bank provides better brokerage plans?
(a) Yes (b) No
25. How do you rate services at ICICI bank?
(a) Very Bad (b) Bad (c) Neutral (d) Good (e) Very
Good

BIBLIOGRAPHY
Websites:
1. www.Google.com
2. www.bseindia.com
3. www.nscindia.com

100
 4. www.moneycontrol.com
5. www.icicidirect.com
6. www.hdfcsecurities.com
7. www.dematerialisation.com
8. www.sebi.gov.in
9. .www.depositoryindia.com
10. www.moneypore.com

NEWSPAPERS:
1. ECONOMIC TIMES
2. TIMES OF INDIA
3. FINANCIAL EXPRESS
Text books
 Indian Financial System – M.Y Khan , Bharath .V. Pathak (Fifth Edition)
 Financial Market – Jordan, Himalaya Publications.
 Financial Markets and Services SEBI – Gordon and Natarajan BharathChandran

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