An exchange of ideas generates a new object to work in a better way. Apart from the ability
labor and time devotion, guidance and co-operation are two pillars for the success of a
project. Whenever a person is helped or co-operated by others, his heart is bound to pay
gratitude to others.
A satiation and pleasure that accompany the successful completion of task would be
incomplete without the mention of the people who have made it possible and whose consent
guidance and encouragement served as a guiding light for the completion of the study.
I would like to express my deep sense of gratitude to Ms. Ruchi Paliwal for giving me
support and helping me during my project study.
I would like to express my gratitude to my project guide Prof. Debdeep De for his constant
encouragement and guidance without the task would not have been completed.
Last but not the least I would like to thank my parent and friends for their support and
Chapter No. Contents Page
Chapter I At a Glance 1-2
Chapter II Introduction 3-7
Limitations of the study
Chapter III Industry Profile 8-23
Chapter IV Company profile 24-29
Chapter V Products and Services 30-79
Chapter VI SWOT Analysis 80-82
Chapter VII Methodology 83-84
Chapter VIII Analysis & interpretation 85-104
Chapter IX Summary of findings 105-107
Recommendations & Conclusion 108-110
4. Executive Summary
The study is about comparing the different services and products offered at SHCIL
with the other Depository participants. Project mainly deals with how the resources of
the organization are used in their day-to-day activities. For a finance manager it will
be of great help to know how to properly utilize the resources of the organization. It is
not only the theory, which will help in the corporate world, but also how things
happen practically. Here there is an opportunity to learn how the things happen
practically. Every day the various activities happening in the department are
observed and understood carefully.
The study initially concentrated on obtaining the information from the investors on
various parameters. As it is a finance project mainly data will be available internally.
After finishing this task, the actual analysis of the project has been started where
certain important calculations has been done. This helped to come out with some
conclusions. Also the data pertaining to some Demat Section Managers has been
taken and analyzed which made to arrive at some interim conclusions as a part of
Stock holding has various financial Products and Services to be offered to the
clients but problem lies in the low promotional activities undertaken by it, due to
which though it has the services not offered by other DP's it fails in captivating
customers. Another problem faced by it is technology; systems at stock holding are
not technologically upgraded: it follows old technology and modes of making entries
of payments into systems. Due to system error payments to franchisees are not
made on time, which in turn affects their business relationship. Since stock holding is
into DP's business from long time it still follows old methods of operations. Thus, the
researcher got interested to conduct study on the Depository Services under the title
Comparative analysis of various Depository Participants with reference to
Stock Holding Corporation of India limited”.
A depository is a facility for holding securities, which enables securities transactions to be
processed by book entry. To achieve this purpose, the depository may immobilize the
securities or dematerialise them (so that they exist only as electronic records).' India has
chosen the dematerialisation route. In India, a depository is an organization, which holds the
beneficial owner's securities in electronic form, through a registered Depository Participant
(DP). A depository functions somewhat similar to a commercial bank. To avail of the
services offered by a depository, the investor has to open an account with it through a
A Depository Participant (DP) is an agent of the depository who is authorized to offer
depository services to investors. Financial institutions, banks, custodians and stockbrokers
complying with the requirements prescribed by SEBI/ Depositories can be registered as DP.
Benefits of Depository
Bad delivery eliminated
Immediate transfer of shares
No stamp duty on such transfers
Elimination of risks that are normally associated in dealing with Physical certificates -
loss / theft / mutilation due to careless handling / forgery / etc
Reduced transaction cost
Services provided by Depository
Dematerialisation (usually known as demat) is converting physical certificates to
Rematerialisation, known as remat, is reverse of demat, i.e. getting physical
certificates from the electronic securities
Transfer of securities, change of beneficial ownership
Settlement of trades done on exchange connected to the Depository
Pledge / Hypothecation of demat shares, viz. Loan against shares
Electronic credit in public offering of the Companies
Non - Cash corporate benefits, viz. Bonus / Rights - direct credit into electronic form
No. of Depository in the country
7. National Securities Depository Ltd.
Central Depository Services Ltd.
A Descriptive Analysis of Depository Participants in Delhi with reference to India‘s Largest
DP ―Stock Holding Corporation Of India Ltd.‖
The past few years have seen a phenomenal growth in the capital market leading to an
explosion in transaction holding despite the transparency offered by NSE and BSE, the
primitive settlement and transfer process kept the biggest chunk of the market risk- bad
delivery, delayed transfer, fake certificates, loss and theft etc, unresolved. The Depositories is
the answer to such risk and problems.
Introduction of the depositories has paved the way for instituting an infrastructure for
eliminating these risks and increasing the efficiency of the system. The purpose of this study
is to provide information to both the organization and the investors/savers, providing to the
former present state and future prospect and to the later differences among the services
provided by the various depository participants.
This Analysis will help to have a better understanding about where SHCIL stands in the
market today and also to compare various DPs on certain parameters.
The main objectives of the project undertaken are-
To understand the attitude and perception of investors/savers towards the DPs.
To ascertain SHCIL‘s position in the competitive market.
To collect the data on various parameters
Reach(No. of branches)
To develop and analyze strategies of SHCIL to help improve its market share.
To offer suggestions based upon the findings.
Limitations of the study
The study is limited only to SHCIL, HO Nehru Place New Delhi.
There was a constraint of time.
8. The entire study is based on the information provided by the various respondents at
For the purpose of collecting vital information, Manager of the organization is only
contacted & interviewed. Since he is an individual, his biases may have creped into
the data given.
The policy of the company does not allow getting all the information.
The collected data will be analyzed with the help of parametric techniques such as
percentages, correlation, regression, co-efficient of variation and the like. Wherever
necessary tables charts, graphs, diagrams are used.
10. COMPANY PROFILE
STOCK HOLDING CORPORATION OF INDIA LIMITED
1.1 Introduction to the company:
Flagged off at the initiative of the Government of India, SHCIL enjoys an enviable parentage
that very few organizations can boast of, including leading Indian Financial Institutions and
the Insurance majors. It has been jointly promoted by IDBI, ICICI, IFCI, IIBI, UTI, LIC, and
GIC and its subsidiaries.
It is headed by luminaries from its promoter institutions who constitute its Board of
Directors and take policy decisions pertinent to the affairs of the corporation. A senior
management team that reports to the Managing Director and the CEO aids, assists and
strategies business lines for the Corporation.
The primary focus of the corporation was specific – to set up custodial services of
international standards in India and in the process to manage the entire array of post trade
activities of Financial Institutions and Foreign Institutional Investors with dedicated client
relationship teams and state-of-the-art reporting systems.
The corporation quickly garnered nearly 70% market share of the domestic custodial business
and the financial figures shot up impressively for the first decade of its existence.
With sustained market leadership, the biggest investing body of the country in its client list,
SHCIL ensures that its technology support not only holds enormous databases together but
also makes sense and service out of it too.
The Smithsonian Institute‘s Award for ―Innovative Use of Technology in the Field of
Finance‖ in1996 and ―Computer Society of India Award‖ were affirmations of its efforts,
long before information technology started leapfrogging across the country.
SHCIL has also received ―No Action Letter‖ from Securities Exchange Commission (SEC)
of USA, which renders it an eligible institution to hold assets of US-based funds.
1.2 Vision of the Company:
―To become one stop shop for all financial services‖ .
11. This vision of the company is slowly being achieved with the foray of the company into new
financial services and products into its portfolio the latest to be the Insurance product, which
would be soon distributed.
1.3 Mission of the Company:
―To spread Quality Service through the innovative use of technology‖ .
1.4 Objectives of the Company:
To retain the No. 1 position in the DP industry by being ahead of all other DP service
providers with the innovative use of technology.
To provide justified service to every rupee the client pays.
To ensure security and convenience of transaction to its clients at reasonable price.
To channel technology to make convenient products for financial market that give
quantum benefits to investors, corporate houses and brokers.
To reach 37 million Internet users in the years to come with e-commerce projection
scaling USD 1.7 billion.
To move with speed and ease, diversifying into new areas, considerably on others and
sharpening its focus and paradigms.
To increase its customer base, this at present is 7 lakh.
To evolve a new strategy to emerge as a broad based financial powerhouse in the
years to come.
To expand to the South-East Asia, with the aim of becoming the leader.
1.5 Basic facts about SHCIL
SHCIL is India‘s largest depository participant.
SHCIL has around 20% market share i.e. over 8 lakhs demat accounts.
SHCIL has approx, 50% market share of delivery- based transaction which amount to 1.33
1. Short title and commencement
3. Board of directors
4. Executive committee
5. Business rules
7. Safeguards to protect interest of clients and participants
12. 9. Accounts/transactions by book entry
10. Reconciliation, accounts and audit
Safety and Efficiency of operations is a hallmark of SHCIL
Professionalism and Integrity
Commitment to Quality irrespective of asset size
HIERARCHICAL STRUCTURE OF SHCIL
BOARD OF DIRECTORS
MANAGING DIRECTOR & CEO
Sr V P BUS. DEV Sr VP (FINANCE) VPs (FUNCTIONAL)
14. INDUSTRY PROFILE
Globalization of the financial market has led to a manifold increase in the investment. New
markets have been opened: new instruments have been developed: and new services have
been launched. Besides, a number of opportunities and challenges have also been thrown
open. Stock Holding Corporation of India Limited. (SHCIL), the premier custodian of Indian
capital market providing services of international standards, is geared up to reposition itself in
the changed scenario. With world — acclaimed automation and a team of committed
professionals, SHCIL is confident of scaling new heights. Combining its financial strength
and technical expertise to serve the clients better, wherever and whenever it is needed,
SHCIL envisages acting as a partner one can trust. The corporation has restructured and
geared itself to serve the growing needs of individual investors in the paperless environment.
SHCIL desires to give investors the time and attention in monitoring the performance of their
securities consistently. All aimed at providing the investor with optimum financial gain.
India has a well established capital market mechanism where in effective and efficient
transfer of money capital or financial resources from the investing class to the entrepreneur
class in the private and the public sector of the economy occur. There has been a shift of
house hold savings from physical assets to financial assets, particularly the risk bearing
securities such as shares and debentures. Capital market structure has also undergone sea
Changes with number of financial services and banking companies, private limited
companies coming into the scene which made the competition in the market stiffer.
The capital market consists of primary market and secondary market segments. The primary
market deals with the issue of new instruments by the corporate sector such as equity shares,
preference shares and debentures. The public sector consisting of central and state
governments, various public sector industrial units (PSUs), statutory and other authorities
such as state electricity boards and port trust also issue bonds. The primary market in which
public issue of securities is made through a prospectus is a retail market and there is no
The secondary market or stock exchange where existing securities are traded is an auction
arena. Since 1995, trading in securities is screen based. Screen based trading has also made
15. an appearance in India. The secondary markets consist of 23 stock exchanges including the
NSE and OTCE and Inter Connected Stock Exchanges of India ltd. The secondary market
provides a trading place for the securities already issued to be bought and sold. It also
provides liquidity to the initial buyers in the primary market to re-offer the securities to any
interested buyer at a price, if mutually accepted. An active secondary market actually
promotes the growth of the primary market and capital formation because investors in the
primary market are assured of a continuous market and they can liquidate their investments in
the stock exchange.
Depository is an organization where the securities of a share holder are kept in the electronic
form at the request of the shareholder through a medium of a depository participant (DP). The
principal function of a depository is to dematerialise securities and enable their transactions
in book form electronically.
In India, the Depository Act defines a depository to mean ―A company formed and registered
under the companies act, 1956 and which has been granted a certificate of registration under
sub-section (la) of section 12 of the Securities and Exchange Board of India (SEBI) act,
Legal Framework of Depositories:
The depositories act of 1996 provides for regulation of depositories in securities and for
matter there with or incidental there to and came into from 2Oth of September, 1995.
SEBI formulated the Depositories and participants regulations act, 1996 to oversee the matter
regarding admission and working of depositories and its participant. The depositories act
passed by parliament received the president assent on august 1, 1996 enables the setting up of
multiple depositories in the country. Only a company registered under the Companies Act Of
1956 and sponsored by the specified categories of institution can setup depositories in India.
The depository offers services relating to holding of securities and facility processing of
transactions in such securities in book entry form. The transactions handed by depositories
include settlement of market trades, settlement of off trades, Securities lending and
borrowing, pledge and hypothecations.
Eligibility Criteria for a Depository:
Any of the following may be a depository:
16. 1. A public financial institution as defined in section 4a of the Companies Act Of 1956.
2. A bank included in the second schedule to the RBI Act, 1934.
3. A foreign bank operating in India with the approval of the RBI.
4. Recognized stock exchanges.
5. An institution engaged in providing financial services where not less than 75% of the
equity is held jointly or severally by these institutions.
6. A custodian of securities approved by government of India.
7. A foreign financial services institutions approved by government of India.
The promoters of depository are also known as its sponsor. A depository company must have
a minimum worth of Rs. 100 Cr. The sponsor of the depository has to hold at least 51% of
capital of the depository company.
Agreement between Depository and Issuers:
If either the issuer (a company which has issued securities) or the investor opts to hold his
securities in demat form, the issuer enters into an agreement with the depository to enable the
investors to dematerialize their securities. Where an issuer has appointed a registrar to the
issue and Registrar and Transfer (R&T) agent, the case may be for the securities declared for
Rights and Obligations of Depositories:
1. Every depository should have adequate mechanisms for reviewing monitoring and
evaluating the controls, systems, procedures and safeguards.
2. Annual inspections of the procedures and same should be reported to SEBI.
3. To ensure that the integrity of automatic data processor systems is maintained to safeguard
4. Adequate measures including insurances, to protect the interests of the beneficial owners
against any risk.
Functions of Depository:
17. One of the primary functions of depository is to eliminate or minimize the movement of
physical securities in the market. This is done through converting securities held in physical
form in to holdings in to back entry form.
The depository gives effects to all transfers resulting from the settlement of trade and other
transaction between various beneficial owners by recording entries in the accounts of such
Transfer and registration
A transfer is a legal change of ownership of a security in the records of the issuer. Transfer of
securities under demat occurs merely by passing book entries in the records of the
depositories, on the instructions of beneficial owners.
Pledge and hypothecation
Depositories allow the securities placed with them to be used as collateral to secure loans and
other credits. The securities pledged are transferred to a segregated or collateral account
through book entries in the records of the depository.
Linkages with clearing system
The clearing system performs the functions of ascertaining the pay-in (sell) or pay (buy) of
brokers who leave traded on the stock-exchange. Actual delivery of securities to the clearing
system from the selling brokers and delivery of securities from the clearing system to the
buying broker is done by depository. To achieve this, depositories and the clearing system are
To handle the securities in electronic as per the Depositories Act 1996, two depositories are
registered with SEBI. They are: National Securities Depository Limited (NSDL), Central
Depository Services (India) Limited (CDSL).
Depository participants (DPS) are described as an agent of the depository. They are the
intermediaries between the depository and the investors. The relationship between the DP‘s
and the depository is governed by an arrangement made between the two under the
depositories act. In a strictly legal sense an OP is an entity who is registered as such with
18. SEBI under the provisions of the SEBI Act. As per the provisions of this act an OP can offer
depository services only after obtaining a certificate of registration from SEBI.
Eligibility Criteria For Depository Participant
A public financial institution as defined in sections of the companies act.
A bank included for the time being in the second schedule to the RBI.
A foreign bank operating in India with the approval of RBI.
A state financial corporation established under the provisions of section 3 of the state
financial corporations act, 1951.
An institution engaged in providing financial services promoted jointly or severally
by any of the institutions mentioned above.
A custodian of securities who has been granted a certificate of registration by SEBI.
A clearing corporations or a clearinghouse of stock exchange.
A stock broker who has been granted a certificate of registration by SEBI.
A non-banking finance company..
A person desirous of becoming a DP of NSDL should make an application to SEBI through
NSDL. NSDL evaluates and sends to SEW within 30 with recommendations. If all the
conditions are met SEBI grants the registration certificate to the applicant. SEBI prescribes a
minimum net worth of Rs.50 Lakh for stock brokers, R&T agents and non-banking finance
companies (NBFCs) for granting them a certificate & registration to act as a DR. A certificate
of registration is valid for a period of 5 years. It may be renewed after 5 years.
Rights and Obligations of Depository Participant
1. Agreement with beneficial owners:
The OP must enter into an agreement with a beneficial owner before acting as a DR on his
behalf. A DR while conducting business with a client, acts as an agent of NSDL and is liable
to the clients for all the acts and deeds performed by him.
2. Separate accounts:
The DP shall open a separate account in the name of each beneficial owner‘s account only on
receipt of instructions from beneficial owner.
3. Statement of account:
19. The OP should provide statements of accounts to the beneficial owner as laid in the
agreement with the beneficial owner. It should be done fortnightly if any transactions are
made and at least quarterly if no transactions are done, It can be provided through internet.
4. Transfer or withdrawal by beneficial owner:
The DP should allow a beneficial owner to withdraw or transfer securities from its accounts
in such manner as specified in the agreement with beneficial owner.
The DP should maintain continuous electronic communication with each P0SItory in which it
6. Monitoring, reviewing & evaluating internet systems & controls: DP should have an
adequate mechanism for the purposes of reviewing monitoring and evaluating its internal
accounting controls and systems. It has to get an audit done on quarterly basis.
The DP shot reconcile its records with every depository in which it is participant on a daily
basis. The NSDL system is designed to do this automatically every day at the end of the day
The DP should submit periodic returns to SEBI and to every depository in which it is a
9. DP to indemnify depository:
A DP has to indemnify the depository, its officers and employees for all costs, fees, expenses,
liabilities, taxes, actual losses and damages of any nature what so ever suffered like failure to
comply with laws, failure to deliver eligible securities etc.
10. Prohibition of Assignment:
No DP can assign or delegate its functions as a participant to any other person without prior
approval of NSDL.
20. DP‘s should take appropriate insurance cover to insure against losses arising from any
possible business risk and system failure.
12. Record of services:
The DP should maintain and preserve the documents for all transactions for a minimum
period of 5 years.
13. DP to ensure integrity and back-up of data:
Where DP‘s maintain electronic records, they should ensure the integrity of the data
processing system. All necessary precautions should be taken to ensure that the records are
not lost, destroyed or tampered with sufficient back-up of records should be taken and made
available at all times at different places. SEBI at any time may cancel the registration of DP if
they are not in complying with the rules laid by the depositories act. Like guilty of fraud,
repeated defaults. DR may sometimes choose to terminate its participation in the depository
by giving notice of less than 30 days.
GOVERNING BODIES OF DEPOSITORY PARTICIPANT
National Securities Depository Limited (NSDL)
National securities depository limited is the first depository to be set up in India. It was
incorporated on December 12, 1995. The Industrial Development Bank of India (IDBI) the
largest development bank in India, UTI the largest Indian mutual fund and the National Stock
Exchange in India sponsored the setting up of NSDL and subscribed to the initial capital.
NSDL commenced operations on November 8, 1996. Following organizations are share
holders of NSDL as on march 31, 2001:
a) INDUSTRIAL DEVELOPMENT BANK OF INDIA
b) UNITED TRUST OF INDIA
c) NATIONAL STOCK EXCHANGE
d) STATE BANK OF INDIA
e) GLOBAL TRUST BANK
g) STANDARD CHARTED BANK
h) HDFC BANK
21. i) HSBC
j) DEUTSCHE BANK
k) DENA BANK
l) CANARA BANK
NSDL is a public limited company incorporated under the companies act, 1956. NSDL had a
paid up equity capital of Rs.10 crore. The paid-up capital has been reduced to Rs.80 crore
since NSDL has bought back its shares of the face value of Rs.4.2 crore in the year 2000.
However, its network is above Rs.100 crore as required by SEBI regulations. -
Management of NSDL:
NSDL is managed by professional board of director. The managing director conducts the day
to day operations. To assist the MD in his functions, the board appoints an executive
committee of not more than 16 members. The eligibility criteria and period of nomination of
the members of EC etc. are governed by the bye-laws of NSDL in this regard.
Bye-laws of NSDL:
The bye-laws approved by SEBI which contain 14 chapters they are:
a) Short title and commencement
c) Board of directors
d) Executive committee
e) Business rules
g) Safeguards to protect interest of clients and participants
i) Accounts by book entry
j) Reconciliation accounts and audit
k) Disciplinary action appeal
22. l) Appeals
Function of NSDL:
NSDL performs the following functions through Depository participants (DP)
Enables the surrender and withdrawal of securities to and from the depository
(dematerialisation and rematerialisation).
Maintains investor holdings in the electronic form.
Effects settlement of trades not done on the stock-exchange (off-market trades).
Transfer of securities.
Pledging I hypothecation of companies or corporate.
Receipt of non-cash corporate benefits like bonus rights r electronic form.
Stock lending and borrowing.
The investors interact with a depository participant (DP) of NSDL. A DP can be a bank,
financial institution, a custodian or a broker. Just as one opens a bank account to avail of the
services of a bank, an investor has to open an account with a DP in order to avail of the
Central Depository Services Of India Limited (CDSL)
Central depository services of India ltd were the second depository to be granted the
commencement certificate by SEBI on 8 February 1999, inaugurated on 15 July 1999. It is
promoted by the Bombay stock exchange, in association of bank of India.
Both NSDL and CDSL interface with investors through their service providers known as DP.
The depository is interconnected. It is possible to transfer shares from one depository to
CDSL was promoted by The Stock Exchange, Mumbai (BSE) jointly with leading banks such
as State Bank of India, Bank of India, and Bank of Baroda HDFC Bank, Standard Chartered
Bank, Union Bank of India and Centurion Bank.
23. CDSL was set up with the objective of providing convenient, dependable ‗and secure
depository services at affordable cost to all market participants. Some of the important
milestones of CDSL system are:
. CDSL received the certificate of commencement of business from SEBI in February 1999.
• Honorable union finance minister, Shri Yashwanth Sinha flagged off the operation s of
CDSL on July 15 1999.
• All leading stock exchanges like national stock exchange, Calcutta stock exchange, Delhi
stock exchange, stock exchange Ahmedabad, etc have established Connectivity with CDSL.
• At the end of December, 2007, over 5000 issuers have admitted their securities (equities,
bonds, debentures, and commercial papers), units of mutual funds, certificate of deposits, etc.
into the CDSL system.
BENEFITS AND SAFETY OF DEPOSITORY SYSTEM
In the depository system the ownership and transfer of securities take place by means of
electronic book entries. At the outset, this system capital market of the dangers related to
handling of paper. The benefits that are accrued by this system are:
> Elimination of bad deliveries:
Once the holdings of investors are dematerialized, the question of bad deliveries doesn‘t arise
because both transfer deed and share certificate are eliminated in depository system.
> Elimination of all risks associated with physical certificate:
Dealing fl physical securities have the associated risks of loss of certificates during
movements to and from the registrars. These expose the investor to cost of obtaining
duplicate certificates, advertisement etc., such problems don‘t arise in the depository
> No stamp duty:
No stamp duty for transfer of equity instruments and units of mutual funds in this system.
> Immediate transfer and registration of certificate:
Once the securities are credited, to the investors account on payout, he becomes the legal
owner of the securities.
24. > Faster settlement cycle:
The exclusive demat segment follow rolling settlement of T+2 days which enables faster
turnover of stock and enhance liquidity with the investor.
> Buyer is secured:
In physical environment, the buyer is not secured since the shares purchased may not be
transferred. This is not the case with depository system.
> Faster disbursement of non-cash corporate benefits:
NSDL provides for direct credit of non-cash corporate entitlements like rights, bonus etc., to
an investors account ensuring faster disbursement.
> Reduction in rate of interest on loan:
Some banks provide these benefits against pledge of departmentalized securities.
> Increase in maximum limit of advances:
This increases from Rs.l0 lakh to Rs.20 Lakh per borrower. There is also a reduction in
minimum margin from 50% to 25% by banks to advances against demat securities.
> Reduction in brokerage:
Brokers may provide a reduction in the brokerage of 0.25% to 0.5% for trading in
dematerialised securities as it reduces their back office cost of handling paper.
> Reduction in handling huge volumes of paper:
In the physical environment every entity involved in purchase or sale of securities was to
handle paper and pass on the paper to the next entity. But in the depository system only the
delivery instruction to be given by the client is in the form of paper.
> Periodic status reports:
DP‘s need to provide periodic reports to investors on their holding and transactions.
>Elimination of problems related to change of address of investors, transmission etc:
Investors have to inform the change of address to the OF which will be reflected in the
database of all the companies where the investor is a registered holder of securities.
25. Many safety measures like investor grievances, insurances cover, computer and
communication infrastructure, periodic review, certificate of registration were made
necessary to protect investors.
COMPARATIVE ANALYSIS ON THE BASIS OF 7P s OF SERVICE MARKETING:-
Marketing mix is one of the most basic concepts in marketing, defined as the
elements of the organization that can be used to satisfy or communicate with customer. The
traditional marketing mix is composed of the four p s i.e.
These are very essential to the successful marketing of services. Service are usually produced
and consumed simultaneously customers are often present
in the firm s interact directly with the firm s personnel and are actually part of the service
production process also, because services are intangible customers will often be looking
for any tangible cue to help them understand the nature of service experience.
acknowledgement of the importance of these additional communication variables has led
services marketers to adopt the concept of an expanded marketing mix for services
6. Physical Evidence
PRODUCT:- We are well aware of the fact that services product are found intangible nature.
It includes, physical goods features, quality level, assessaries, packaging, warranties, product
line and branding. Therefore now we have focused on the depository services (demat &
brocking). And all the competitors of SHCIL provides same products with the same product
line so here no significant diffarance between provided services so there no need to compete
in between SHCIL and other major competitors in this factor. PRICE:- This element of
marketing mix is related to the decision influencing the fee structure includes, A/C opening
charges, AMC, Transfer fee, Brokerage charged by service providing organization. Analysis
on the basis of secondary data is as follows.
SERVICE PROVIDERS ELEMENTS SHCIL
A/C OPENING 550 750 2500 100 1 AMC 560 360 360 500 500 TRANSFER FEE 35 25 Nil
25 35 DEMATERIALISATION 35 25 NIl 25 3034 ANALYSIS OF AMC & A/C OPENING
3000 SHCIL ANAND
SECURITIES MOTILAL OSWAL
AMC With the help of above analysis it is found that SHCIL s a/c opening charges are
competitive in nature , where a/c opening charges of KOTAK
SECURITIES is highest because it include Rs. 2000/- as advance brokerage. While ICICI
Direct.com promoted a scheme in which they open an account in Rs. 1/- only. On the basis of
above AMC analysis it is found that annual charges SHCIL is comparatively high than
competitors. Where the ANAND RATHI35 ANALYSIS OF TRANSFER FEE & DEMAT.
40 SHCIL ANAND
SECURITIES MOTILAL OSWAL
TRANSFER FEE DEMATERIALISATION
By analyzing the above chart it finds that transfer fee & dematerialization charges of SHCIL
& ICICI DIRECT .COM are slightly same. While ANAND RATHI & MOTILAL OSWAL
charges same amount for the transfer fee & dematerialization. On the other hand we can see
that KOTAK SECURITIES stands strong because they provide these
services at free of cost. 36 BROKERAGE ANALYSIS
SHCIL ANAND RATHI KOTAK
SECUROITIES MOTILAL OSWAL
BROKERAGE MAX. MIN. BROKERAGE:- BROKERAGE
27. SERVICE PROVIDER MAX. MIN. SHCIL 0.55% 0.15%
ANAND RATHI 0.59% 0.18%
KOTAK SECUROITIES 0.45% 0.15%
MOTILAL OSWAL 0.59% 0.18%
ICICI DIRECT.COM 0.75% 0.25%
By analyzing the above schedule and bar graph we come to know that SHCIL s charges for
trading is competitive in the market. It is also found that KOTAK
SECURITIES charges minimum amount for trading. On the other hand it is also found
that ICICI DIRECT.COM charges maximum price for trading. Though SHCIL is well in
this factor they need to cut off their price to attract more customer.37
PLACE:- Another important element of marketing mix is place which focuses attention on
the offering of services by the provider to the customer & the place of location for the
service generating organizations. In this factor the location is preferred at the point where we
find some of the
essential features such as easy and convenient accessibility, safety and protection, availability
of the infrastructure facilities etc. We can t neglect that these features make available to the
branches. The location
advantage which simplify the task of marketing effectively. DISTRIBUTION ANALYSIS:-
In this damnation of the analysis we found that SHCIL have two service providing centers in
Nagpur, both are located in commercial areas i.e. 1. Gandhibag (main office) 2. Dhantoly
(branch) And other competitors having following numbers of service providing centers in
Nagpur, shown in following table. SERVICE PROVIDER NO. OF CENTERS
SHCIL 2 ANAND RATHI 13 KOTAK SECURITIES 8 MOTILAL OSWAL 5
ICICI DIRECT.COM 138
14 NUMBER OF CENTERS
1 2 3 4 5 SERVICE PROVIDER NO. OF CENTERS By analyzing the above data we found
that as compared to competitors (except
icici direct.com) SHCIL have less number of branches though it having the maximum
number of DP Account. In near future SHCIL is planning to expand their service area by
opening branches in Yawatmal, Wardha, Chandrapur dist which are closer to the Nagpur
district. 1. SHCIL
2. ANAND RATHI 3. KOTAK SECURITOES
4. MOTILAL OSWAL
5. ICICI DIRECT.COM39 PRAMOTION:- Sales do not occur automatically to be more
specific in the business environment where we find the intensity of competition moving
upward, it is not possible to go and
remain at for the long time to come, unless we prepare the ground or set the stage for
future expansion & evolve new ideas for creating favorable selling conditions. It is sales
promotion which is backs up pre selling & stimulates the impulsing buying. It attracts the
prospects & keeps moving the existing customers behind the product. PRAMOTIONAL
In the period of two month of summer project we found SHCIL s promotional activities are
as follows. SHCIL offers combo pack scheme i.e. DP account and Trading account, both in
28. Rs. 550/- only. A trading account holders get the facility of opening a saving account with
UTI bank with the minimum balance of Rs. 500/- where normally charged minimum
balance Rs. 5000/-
It also provides corporate account at competitively less charges (i.e. Rs. 550/- only) ANAND
RATHI:- Maximum number of advertising hoardings found in Nagpur region in well
located areas. Attractive punch line Behind Every Successful Investor. Believe in advertising
in local news paper and electronic media.40 KOTAK SECURITIES:- Kotak offers saving
bank account of kotak mahindra bank with Dp account. Using attractive punch line Think
Investment, Think Kotak Heavy advertising strategy in print and electronic media.
MOTILAL OSWAL:- Attractive punch line Solid Research, Solid Advice. Advertisement
hoardings found in main commercial areas. Motilal Oswal publishes business review. ICICI
DIRECT.COM:- Offers bank account with trading and demat account. Offers a scheme of
account opening at Rs.1/- Account holder gets insurance of Rs. 100000/-. ANALYSIS By
analyzing the above data we found that SHCIL has lagging behind
comparing to their competitor in the essential element of promotion. Where ANAND RATHI
& KOTAK SECURITIES believe in More Promotion More Sales. Though they entered
recently in the market compared to SHCIL they
are well established in the market & competing toughly because of their rational promotional
PEOPLE:- All human actors who plays the part in service delivery and thus influence the
buyers perception manly the firms personnel the customer and the other customers in
service environment. How these people are dressed their personal appearance & their
behavior all influence the customer s perception of the service. Stock Holding Corporation Of
India Ltd hires quality people and they are trained the technical skill which are using in
organization. On the other hand competitors provide the technical knowledge time to time
and make them aware about up going competition. In addition to
that damnation competitor has made the completion of formal dress code to their executive
and employees, which indicates discipline to their duties. PHYSICAL EVIDANCE:- The
environment in which the services are delivered and where the firm and
customer interact and any tangible components that facilitate performance or communication
of services. The physical evidence of services includes all the tangible representation of the
service. Such as broachers, latter head, business card, report format and etc. SHCIL provides
following thing to their customer Monthly fact sheet, Demat letter, Annual report, Demat kit.
Etc. And other competitor also provides the same kind of physical things. So it is not better to
compete in between this dimension of service marketing mix. 42
PROCESS:- What is process? The actual procedure, mechanism and the flow of activities by
which the - services delivered and operating systems. The actual delivery steps the customer
experiences, or the operational flow of services will also provide customer with evidence or
which to judge the service. By analyzing the process model of SHCIL and it competitors we
process model dimensions. 1. Time taken for account opening. 2. Technology employed. 3.
Order processing. 4. Settlement of claim 1. Time taken for account opening:- A) SHCIL:-
It takes minimum 2 days to open an account and week to get it activated B) ANAND
RATHI:- This firm takes 1 to 2 days for activation. C) KOTAK and ICICI DIRECT.COM
and MOTILAL OSWAL take nearly 3 days to
open and get it activated.43
2. Technology employed:- SHCIL uses intranet technology by which they are interconnected
with each other all over India. Company offers personal e-mail ac to all the employees so
29. connect with each other, which help to solve the problem quickly as possible. And the
competitor s uses highly advanced technology like, online trading by assembling trading
software with customer at home. They installed live update displays of stock
exchange. They provide facility like, hot tips regarding buy and sale of stock with the help of
group SMS software. 3. Order processing
In SHCIL customer place their order by phone and personally. For security
purpose every customer by their pin number. Competitor also provides the same kind of
service and additionally they provide online
trading. 4. Settlement of claim As per the norms, SHCIL settles the claims in T+2. And if any
one having the
account in UTI bank claim settles before T+1. Anand Rathi and Motilal Oswal also settle the
claim in T+2 period. While ICIC Direct.com & Kotak Securities settle within the short span
of time, because they are the bank themselves.