COMPARATIVE ANALYSIS OF DEMAT SERVICES OF

BROKING FIRMS

PROJECT REPORT

ON

MANAGEMENT OF FINANCIAL SERVICES

SUBMITTED TOWARDS PARTIAL FULFILLMENT

OF

POSTGRADUATE PROGRAMME IN MANAGEMENT

SUBMITTED TO SUBMITTED BY
PROF: SAMARJEET SEN D.RAVI H2-23
GUPTA AJAY KUMAR H2-19
AMIT
NAWEEN KUMAR RAI
rd
(3 SEMESTER)
SPECIALIZATION –MARKETING + FINANCE

EASTERN INSTITUTE FOR INTEGRATED LEARNING IN MANAGEMENT

GILANDER HOUSE
KOLKATA
NOTICE
The presentation of this project is truely based on
my knowledge and it may have some defaults and
errors which is to the subject knowledge. this
project can be taken for the purpose of
understanding only and should not be taken as the
real. Charges and other services provided in it may
vary slightly or wholly.
 ACKNOWLEDGEMENT

We are thankful to MR. Samarjeet sen gupta who has given this
opportunity for doing a project work on “comparative study of
demat services of different broking firms”. From this study we
have gathered knowledge of services which are provided by the
broking firms and also find out which of the firm is having good
service.
1) INTRODUCTION

2) DEMATERALIZATION

3) REMATERIALIZATION

4) DEPOSITIORY SERVICE

5) DEMAT SERVICES OF HDFC

6) DEMAT SERVICES OF OTHER FIRMS

7) COMPARISION OF DEMAT SERVICES OF HDFC WITH

OTHER FIRMS

8) FINDINGS

9) CONCLUSION

10) BIBLIOGRAPHY
1) INTRODUCTION

Every modern economy is based on a sound financial system

.A financial system is a set of institutional arrangements through
which financial surpluses are mobilized from the units generating
surplus income and transferring them to the others in need of
them. The activities include production, distribution, exchange
and holding of financial assets/instruments of different kinds by
financial institutions, banks and other intermediaries of the
market.

The financial markets have two major components; they are

money market and capital market.

Financial Markets

Money Market Capital

Market
 Securities Market
other forms of Lending

And Borrowing

New issue (Primary) Stock

(Secondary)
Market
MONEY MARKET:
The Money Market refers to the market where borrowers
and lenders exchange short-term funds to solve their liquidity
needs.

CAPITAL MARKET:
The Capital Market is a market for financial investments that
are direct or indirect claims to capital (Gart, 1988).

SECURITIES MARKET:
It refers to the markets for those financial
instruments/claims/obligations that are commonly and readily
transferable by sale. It has two inter-dependent and inseparable
segments, the new issues (primary) market and the stock
(secondary) market.

SECONDARY MARKET:
The secondary market enables those who hold securities to
adjust their holdings in response to changes in their assessment
of risk and return.

PRIMARY MARKET:
 The Primary Markets provides the channel of sale of new
securities.

2) DEMATERIALZATION

Demat account

Definition:
De-mat account is a safe and convenient means of holding
securities just like a bank account is for funds. Today, practically
99.9% settlement (of shares) takes place on De-mat mode only.
Thus, it is advisable to have a Beneficiary Owner (BO) account to
trade at the exchanges.

Benefits Of De-mat Account:

1. A safe and convenient way of holding securities (equity and

debt instruments both).
2. Transactions involving physical securities are costlier than
those involving dematerialized securities (just like the
transactions through a bank teller are costlier than ATM
transactions). Therefore, charges applicable to an investor
are lesser for each transaction.
3. Securities can be transferred at an instruction immediately.
4. Increased liquidity, as securities can be sold at any time
during the trading hours (between 9:55 AM to 3:30 PM on all
working days), and payment can be received in a very short
period of time.
5. No stamp duty charges.
6. Risks like forgery, thefts, bad delivery, delays in transfer etc,
associated with physical certificates, are eliminated.
7. Pledging of securities in a short period of time.
8. Reduced paper work and transaction cost.
 9. Odd-lot shares can also be traded (can be even 1 share).
10. Nomination facility available.
11. Any change in address or bank account details can be
electronically intimated to all companies in which investor
holds any securities, without having to inform each of them
separately.
12. Securities are transferred by the DP itself, so no need
to correspond with the companies.
13. Shares arising out of bonus, split, consolidation, merger
etc. are automatically credited into the De-mat account of
the investor.

Shares allotted in public issues are directly credited into De-mat

account of the applicants in quick time

Opening a De-mat Account

To start dealing in securities in electronic form, one needs to

open a De-mat account with a DP of his choice. An investor
already having shares in physical form should ensure that he gets
the account opened in the same set of names as appearing on
the share certificate; otherwise a new account can be opened in
any desired pattern by the investor.

NOTE

• The agreement required to be signed by the investor details

the rights and duties of the investor and DP.
• DP may revise the charges by giving a 30 days prior notice.
SEBI has rationalized the cost structure for inaction by
removing account opening charges, transaction charges for
credit of securities and custody charges, effective from
January 28, 2005.

Maximum Number of holders in a De-mat Account

A maximum of three persons are allowed to open a joint De-mat
account in their names
3) REMATERIALISATION

Definition:
Dematerialization is the process of converting physical shares
(share certificates) into an electronic form. Shares once
converted into dematerialized form are held in a De-mat account.

Dematerialization Process:

An investor having securities in physical form must get them

dematerialized, if he intends to sell them. This requires the
investor to fill a De-mat Request Form (DRF) which is available
with every DP and submit the same along with the physical
certificates. Every security has an ISIN (International Securities
Identification Number). If there is more than one security than the
equal number of DRFs has to be filled in.

The whole process goes on in the following manner:--

THINGS INVESTORS SHOULD KNOW ABOUT ACCOUNT
OPENING AND DEMATERIALISATION

Providing the bank account details at the time of account

opening
It is mandatory for an investor to provide his bank account details
at the time of opening a De-mat account. This is done to
safeguard investor's own interests. There are two major reasons
for this:

1. The interest and dividend warrants can't be en-cashed by

any unauthorized person, as the bank account number is
mentioned on it.
2. It is convenient and time saving, as dividends and interests
given by the companies can be directly credited to the
investor's bank account (through ECS facility, wherever
available).

Change in bank account details

It is possible for an investor to make changes to the details of his
bank account. The investor must inform any change in his bank
account details to his DP. This enables him to receive the cash
corporate benefits (such as dividends, interests) directly into his
account in time and discourages any unauthorized use by any
second party.

Change in the address of investor as provided to the DP

Any change in your address should be immediately informed to
DP. This enables DP to make necessary changes in the records
and informing the concerned companies about the same.

Opening multiple accounts

an investor is allowed to open more than one account with
existing DP or with different DPs.
Minimum balance of securities required in De-mat account
There is no stipulated minimum balance of securities to be kept in
a De-mat account.

Account opening and ownership pattern of securities

One must make sure to open a De-mat account in the same
ownership pattern in which the physical securities are held. For
example: If you have two share certificates, one in your individual
name (say 'X') and the other held jointly with some other
individual (say 'XY'), then in such a case you will have to open
two different accounts in respective ownership patterns (one in
your name i.e. 'X' and the other account in the name of 'XY').

Same combination of names on certificates but different

sequence of names on the certificates or De-mat account
Regulations provide that the client receives a contract note
indicating details like order number, trade number, time, price,
brokerage, etc. within 24 hour of the trade. In case of any doubts
about the details of the contract note, you (investor) can avail the
facility provided by NSE, wherein you can verify the trades on
your website
www.nseindia.com/content/equities/eq_trdverify.htm. The
Exchange generates and maintains an audit trail of orders/trades
for a number of years, and you can counter check details of
order/trade with the Exchange.

Holding a joint account on "Either or Survivor" basis like a bank

account
No investor can open a De-mat account on "E or S" basis like a
bank account.

Allowing somebody else to operate your De-mat account

It is possible for an account holder (Beneficiary Owner) to
authorize some other person to operate the De-mat account on
his behalf by executing a power of attorney. After submitting the
power of attorney to the DP, that person can operate the account
on behalf of the beneficiary owner (BO).
Addition/deletion of the names of the account holders
after opening the account
It is not possible to make changes in the names of the account
holders of a BO account. A new account has to be opened in a
desired holding/ownership pattern.

Closing a demat account and transfer of securities to

another account with same or different DP
An investor, if he wants, can also close his demat account with
one DP and transfer all the securities to another account with
existing or a different DP. As per a SEBI circular issued on
November 09, 2005, there are no charges for account closure or
transfer of securities by an investor from one DP to another

Freezing/Locking a demat account

The account holder can freeze his demat account for a desired
time period. A frozen account prevents securities to be
transferred out of (Debit) and transferred into (Credit) the
account.

Dematerialized shares do not have any distinctive number

Dematerialized securities are fungible assets. Therefore they are
interchangeable and identical.
4) Dematerialization

The process of getting the securities in an

electronic form, converted back into the physical form is known
as Dematerialization. An investor can rematerialize his shares by
filling in a Remat Request Form (RRF).

The whole process goes on as follows: ---

Trading account:

It is that type of account with the help of which a De-Mat account

holder can buy or sell shares. India Infoline Ltd. Provide their
customer software” Trade Terminal” for trading by free of cost
and unlimited number of scripts.
5) Depository Service’s

 Depository - An organization that facilitates holding of

securities

In the electronic form and enables DPs to provide services to

investors relating

to transaction in securities. There are two depositories in India,

namely NSDL

and CDSL. As per a SEBI guideline, the minimum net worth

stipulated for a

Depository is Rs.100 crore.

 NSDL/CDSL - The securities are held in depository accounts,

like the funds

are held in bank accounts. There are two depositories in India

namely NSDL and

CDSL. NSDL (National Securities Depository limited) was

established in August

1996 and is the first depository in India. CDSL (Central Depository

Securities

Limited) is the other depository and was established in 1999.

 DP (Depository Participant) - A Depository Participant can be

a financial

Organization like banks, brokers, financial institutions,

custodians, etc., acting as an agent of the Depository to make its
services available to the investors. There

are a total of 1334 DPs registered with SEBI, as on March 31,

2009 and each DP
is assigned a unique identification number known as DP-ID. Under
the

Depositories Act, investors can avail of the services of the

Depositories through

Depository Participants (DP) such as HDFC BANK.

6) Demat services of HDFC

HDFC BANK is one of the leading Depository Participant (DP) in

the country with over 8 Lac demat accounts. HDFC Bank Demat
services offers you a secure and convenient way to keep track of
your securities and investments, over a period of time, without
the hassle of handling physical documents that get mutilated or
lost in transit. HDFC BANK is Depository participant both with
-National Securities Depositories Limited (NSDL) and Central
Depository Services Limited (CDSL).

Features & Benefits of demat account in HDFC

As opposed to the earlier form of dealing in physical certificates

with delays in transaction, holding and trading in Demat form has
the following benefits Settlement of Securities traded on the
exchanges as well as off market transactions.

Shorter settlements thereby enhancing liquidity.

Pledging of Securities

Electronic credit in public issue

Auto Credit of Rights / Bonus / Public Issues / Dividend credit
through ECS

Auto Credit of Public Issue refunds to the bank account

No stamp duty on transfer of securities held in demat form

No concept of Market Lots

Change of address, Signature, Dividend Mandate, registration of

power of attorney, transmission etc. can be effected across
companies held in demat form by a single instruction to the
Depository Participant (DP).

Holding / Transaction details through Internet / email.

Secured & easy transaction processing service

HDFC Bank Ltd provides convenient facility called 'SPEED-e'

(Internet based transaction) whereby account holder can submit
delivery instructions electronically through SPEED-e website
(https://speed-e.nsdl.com). SPEED-e offers secured means of
transaction processing eliminating preparation of instruction slips
and submission of the same across the counter to the depository
participant. The 'IDEAS' facility helps in viewing the current
transactions and balances (holdings) of Demat account on
Internet on real time basis.

Types of Demat Accounts offered by HDFC

 Resident Individual Account.

 Hindu Undivided Family (HUF) Account

 Domestic Corporate Account

 Non Resident Indian (NRI) Account

 Clearing Member Account

  Commodities Account

 Pool Accounts for Brokers and Clearing Members

 Margin Account

Account Opening Process

Anyone who wants to open a demat account in hdfc can visit the
website of HDFC and can apply for the same. When any one
register for demat account opening, the executive of HDFC will
contact him/her and will complete further formalities needed for
account opening.

Or

Alternatively one can visit the nearest branch to obtain the

necessary applications and complete the formalities.

Upon processing of application form

The registrar of demat account, will receive a "Welcome Kit"

which will include a Personalised Instruction Booklet along with a
DP Client Master list ( CML) for the demat account. The CML will
contain the following:

 Your Demat Account Number.

 Name(s) of the Account Holder(s).
 Nomination details, if applicable and opted

Instruction slips Processing

  Instruction slips are like Cheque leafs, but the difference is it
has to be signed by ALL the account holders, as "Either or
Survivor" concept is not available in demat segment.
 Please keep them under safe custody.
 Do not leave "blank or signed" Delivery Instruction Slip (DIS)
with the Depository Participants (DPs) or any other
person/entity
 Ensure Instruction slips are properly filled and signed by ALL
the holders of the account.
 Ensure that the Instruction slips are submitted to us well
within the time for timely execution. I.e. markets transactions
are to be submitted to us by 4.00 pm on the day prior to Pay-in
and incase of Off-Market ensure the "execution date" is of the
next day of submission. Off market with same day execution
and On-Market instructions received after 4.00 pm for next day
Payin will be accepted and processed at your risk and
responsibility.
 Ensure that the blank columns are cancelled.
 Ensure that acknowledgement is obtained on ALL the
duplicate copies of the instructions submitted.
 In case of fresh instruction book requirement, ensure that
the request is submitted in the form provided in your existing
booklet. Kindly note as per recent SEBI guidelines
SEBI/MRD/Dep/Cir-03/2007 dated 13th Feb 2007, only 20
instruction slips for individual accounts and 100 instruction slips
for non - individual account holders, can be issued at one time.
Further the same can be issued only after minimum of 75%
usage on the previous issued instructions, unless reported lost/
stolen / non traceable by client.
 Incase of loss / stolen / misplacement of your instruction
booklets, please inform us in writing, duly signed by all the
holders to make a stop transfer.

Not more than 10 loose slips instruction slips can be issued to one
account in a financial year (April to March). For issuance of loose
instruction slips, account holder shall come in person and sign the
loose slip in presence of an authorized bank official
Market Transactions

When you are required to deliver the securities to your broker's

pool account, you need to complete the "Market" details on the
Instruction Slip which is provided to you in the Welcome Kit. In
such Case the information’s are required to be provided by the
account holders.

CMBP ID of your broker

DP Name where your broker's pool account is held.

Settlement Type.

Settlement Number

Off-Market Transactions

Incase if one required making an off-market transaction to

transfer the securities to another account held in the same
depository, please fill-up the following details of the Target
account.

DP ID.

DP Name.

Client ID

The following information’s are related to the security that one is

required to transfer

ISIN Number.

Scrip Name

Quantity in numbers
Quantity in words

Execution date.

Customer are also required to provide Reason / Purpose of the off

market Transaction, & Consideration Amount (if any) Paid /
Received for ALL off market instruction (including inter depository
transaction and for both delivery and receipt). In addition to the
instruction slip this information can be provided in an annexure
signed by ALL the holders.Click here to download the annexure
format

Securities Lending & Borrowing

Securities Lending & Borrowing (SLB) segment delivery

instructions are to be submitted on the trading day itself. It is
advisable to avail SPEEDe facility for the smooth processing of
instructions.

Electronic Instruction (Speed E, Easi)

The above instructions can also be processed electronically by

yourselves, i.e. no need to submit a physical instruction.

Basically one can use the Speed E of NSDL and Easi of CDSL
wherein one also needs to punch in the instruction details. The
same will get processed electronically by the respective
Depositories.

However it is need to register for the same with the consent of

one’s broker(s). You can register up to 3 brokers per DP account.

Inter-Depository Transactions

It is basically transfer of securities between two demat accounts

held across depositories, i.e from NSDL to CDSL and vis-versa.
Transfer from NSDL account to a CDSL account

In case of a client holding a Beneficiary Account with NSDL, he /

she have to submit an instruction as per format.

Transfer from CDSL account to a NSDL account

In case of a client holding a Beneficiary Account with CDSL, he /

she has to submit an instruction as per format

SMS Alert facility from NSDL

 For demat account holders whereby investors can receive

alerts a day after debits (transfers) to their demat accounts.

Rematerialisation of securities

This is a process of converting the Electronic securities into

Physical, i.e reverse of Dematerialisation for which form "RPF" is
required to be submitted by the account holders

In case of rematerialisation, kindly ensure the following

Request "RPF" is duly signed by ALL the account holders.

One RPF per ISIN per account is submitted

Upon receipt of the RPF, HDFC Bank will.

Verify the names on the RPF with the names on the account

Verify the signature on the RPF with the signature on the account.

Process the request and forward it to the Registrar / Company

concerned

Company/Registrar will issue a new certificate and forward it

directly to the address registered in your Demat account
Pledge Creation

Securities in one demat account can be pledged infavour of an

another demat account within the same depository. I.e. if a
Pledgor's account is in NSDL segment, the Pledge’s account has
to be in NSDL Segment only. Vis versa for CDSL segment.

This can be done to avail facility, loans etc

You need to submit a Pledge Creation form duly filled with the
details of the security which you would like to pledge with the
counterpart (Pledgee) DP account details. The form should be
duly signed by ALL the account holders. Kindly mention the
Agreement number for reference purpose, which one should
obtain from the Pledgee before execution. Also ensure the
Execution date on which one would like to create the pledge.

Upon receipt of the request, HDFC Bank will process the

instruction in requestee demat account specified. The details
processed will be sent to the counterparty demat account
through NSDL automatically.

Pledge Confirmation

Pledgee has to check their demat account and accept the pledge
through their DP. Upon acceptance, the securities will be marked
as "Pledge" in your demat account infavour of the Pledgee. Once
the Pledge is created, the same cannot be closed / revoked by the
Pledgor.

Pledge Closure

Pledgee can close the pledge through "Unilateral" option through

their DP account itself. I.e. no need of Pledgor submitting a
request to his DP.

Invocation of Pledge
In case of Pledgee requires to take the securities into their books,
typically incase of default by the Pledgor, they can do so without
any further instruction from the Pledgor. Upon invoking the
securities will be transferred automatically into the account of
Pledgee

FREEZING/ DEFREEZING OF DEMAT ACCOUNT

If anyone who would like to Freeze his/her demat account OR

freeze a specific or set of ISINs in his/her account, the same can
be done.

One should need to submit an instruction as per format to do the

same with a future execution date.

When one would like to defreeze the same, then he/she need to
provide another instruction as per format to do so.

Purchase of KVP and NSC through a demat account

One can make a fresh purchase of KVP & NSC through his/her
existing demat. I.e. no need to open a separate demat account
for the same

Guidelines for Purchase of KVP / NSC

Check with the Post of Office whether they issue the credit in
demat mode, as only select post offices in Mumbai are issuing the
same.
Investors will be able to submit the forms either directly to post
offices or through agents, as at present.
NSC and KVP can be held by individuals. Further, Joint holders
only upto two are allowed.
NSDL as well as DPs will not charge any custody fee for holding
NSC/KVP.
Investors can pledge NSC/KVP, as per the rules of the DoP.
On redemption, the investor may not be required to go to the
issuing post office as the redemption amount may directly be
credited into the investor's bank account or a warrant can be
directly sent to the investor. For this purpose, it is necessary for
the investor to mention his bank account details in the application
form.
Investors can hold NSC/KVP in their existing demat account. This
would enable the investors to consolidate different types of
investments in a single demat account. Multiple investments in
these securities will also get reflected in a single account
statement.
Risk associated with holding physical certificate will be
eliminated.
On redemption, the investor need not go to the post office. The
investor's bank account will be credited directly or he will receive
a warrant at his residence.
As of now, dematerialisation of existing KVP / NSC certificates is
not available.

Statements

Demat account holders will be provided with a monthly

transaction cum billing cum holding statement, if there are any
transaction took place during the month.

All the demat account holders will be provided a quarterly holding

statement on a quarterly basis.

Incase of 1st holder of a demat account has a savings / current

account with HDFC Bank, he can access his demat holdings as of
the previous day through Internet. The account holder has to
register for a "net banking" and "dp on net".
Change of Address

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Copy of latest demat account transaction statement needs to
be provided. Kindly ensure that the same is the latest one.
Copy of Identity Proof of ALL the holders needs to be submitted
and original needs to be shown to the bank official for
verification purpose.
Copy of the new valid address proof to be provided to us and
original needs to be shown to the bank official for verification
 purpose.
Either one is needed to visit the branch OR one can authorize
their representative to do the needful.
In case one authorizes his/her representative to complete the
original needs to be shown to the bank official for verification
purpose.
Investor and their respective representative have to sign once
again in the presence of a DP official.
On receipt of a valid request, HDFC Bank will verify the photo on
the ID proofs submitted along with the request with the photo on
the original application form and effect the changes.

Also HDFC Bank will send intimation to this effect to investor’s old
and new address.

Change of Signature

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 Ensure that the new signature is duly attested by the banker
with his signature, name, employee code and complete address
of the bank.
Kindly mention the reason for the change of signature.
Visit the branch personally to submit the request.
Sign once again in front of the bank official.
Submit a copy of valid ID Proof along with original for hdfc
verification purpose.
On receipt of a valid request, HDFC Bank will verify the photo on
the ID proofs submitted along with the request with the photo on
the original application form and effect the changes.

Change of Bank Account details

Submit a change request to us duly signed by the 1st holder as

per our format.
Submit a specimen / cancelled copy of cheque leaf.
Please provide the complete address of the bank as follows:

 Building / Tower / Apartment / Palace / Chamber / Mansion

 Street / Road / Marg / Lane / Avenue / Rasta
 Area Name
 City Name

 Mention the 9-digit MICR code on the request.

Power of Attorney (POA)

Incase if anyone like to register a POA given to another individual

to operate investors demat account, one may kindly do so.

POA holder is subject to KYC guidelines of HDFC Bank.

Notarised copy of POA is required to submitted to HDFC Bank.
Signature of both Donor and Donee should be available on the
POA.
POA should have atleast the minimum clauses advised by NSDL.

Transmission

In the event of unfortunate death of any of the account holder,

the securities held in the demat account of the deceased can be
transmitted to the surviving holders / valid nominee / legal heirs
as the case may be.

Surviving Holders

In case of death of one of the joint holder, the surviving holders

can get the securities transmitted into their account. Surviving
holder(s) has to maintain / open the demat account in the same
holding pattern, except the deceased holder.

Transmission into Nominee's account

In case of death of the sole / all holders of a demat account, and if

a valid nomination is registered in the demat account, the
nominee can make a request as per format, (The provisions
relating to format shall apply mutatis mutandis to the process of
transmission of securities to the Nominee) along with a notarized
copy of Death Certificate to the bank to get the securities
transferred into his / her account held singly.

Transmission into Legal Heir(s) account

In case of no surviving joint holders and no nomination registered,

the transmission can be effected to the account of the legal heir.
Succession Certificate or Probate of will or letter of administration
duly notarized is required to submit. In such case the demat
account needs to be held / opened as required by the document
submitted for the claim.

For all the above 3 categories, a specific request as per format is

required to be submitted along with a notarized copy of death
certificate of the deceased. For the 3rd Category in where there is
no surviving holder or nomination, the following additional
documents would be required:

A Copy of Succession Certificate duly notarized or an order of a

Court Competent jurisdiction where the deceased has not left a
Will; or
A Copy of Probate or letter of administration duly notarized is
required to be submitted.

In case of any further attachment to the annexure, the same is

required to be signed by all concerned.

However, if the legal heir(s) or the legal representative(s) express

inability to produce either of the documents mentioned under (ii)
and (iii) above, and the market value of the securities held in
each of the account of the deceased as on the date of application
for transmission does not exceed Rs. 1,00,000/- then the
Participant shall process the transmission request on the basis of
the following documents:

Request for transmission as per the format;

Copy of the death certificate duly notarized; Letter of Indemnity
duly supported by a guarantee of an independent Surety
acceptable to the Participant, made on appropriate non judicial
stamp paper;
An Affidavit made on appropriate non judicial stamp paper; and
No Objection Certificate(s) from all the legal heir(s) who do not
object to such transmission.

DP on Net
If a 1st holder of a demat account maintains a Savings / Current
Account with HDFC Bank, he / she can opt for a "Netbanking"
facility. Through which the demat account status of the previous
day, i.e holding and last few transactions can be viewed. For
which the account holder has to register for "Netbanking" and
linking of demat account to his "CustID"

Demat Fees

Curently Transaction charges are charged on a monthly basis

which includes NSDL / CDSL Charges as other statutory charges
like Service Tax and Cess. Details of the same are provided in the
monthly "Transaction cum Billing" Statement

Dematerialisation charges are charged on a monthly basis for the

DRF and certificates submitted to us.

Annual Maintenance charges are charged on a yearly basis. The

same is charged at the expiry of every 12 months for the next
year.
All such charges are debited to the Savings / Current Account to
which you have authorized the bank to debit the charges

FEE HEAD CHARGES MINMUM FEES

Account Opening NILL
Dematerialization Rs. 3 per certificate, RS 38.00
s plus Rs. 35/- per
request
Rematerialisation At actuals, as levied -----
by the Depository
Currently Rs. 10/-
per certificate
Equity Transaction 0.04 % of the value ** Minimum Rs.20.00
– SELL of the transaction
Equity Transaction NILL
– Buy
Folio Maintenance Rs. 500.00 per Rs. 500.00
 demat account per
annum
Pledge Services * 0.04% of the value RS25.00
of the shares
Asset Holding NILL
Debt Transactions 0.04 % of the value Rs. 500.00 per txn.
– Sell of the transaction.
Minimum Rs 500/-
and Maximum Rs
5000/- per Txn
Debt Transactions NILL
– Buy

Mailing Charges Rs. 25/- per request -----

for non periodic for inland address
statements and Rs. 500/- per request
other for foreign address
communication

7) DEMAT SERVICES OF OTHER FIRMS

INDIA INFOLINE

Services:

Demat account offered for investor:

(based on group) Individual
accounts demat

NRI demat
account

Corporate
account

HUF account
 Partnership Firm
account

Proprietorship Firm
account

Types of account:
(based on securities & funds) Trading account

Depository account

Share trading through: Online- trader terminal software

-5paisa.com

-indiainfoline.com

: Offline- relationship manager

-via franchise

Transaction detail through: sms

Transaction report via

courier

Phone calls

:Rs 10/- per cert + Rs 40/- as

Demat charge postal charges
Rs 15/- per cert + Rs 40/- as
Remat charge postal charges
Transaction Min Rs 15/- Max Rs 100/- or 0.05% of the
(Debit) value of the securities

ANGEL BROKING

Services:
Demat account offered for investor :
(based on group)

individual
account

joint account

NRI account

Types of demat account: ANGEL TRADE

- ANGEL INVESTOR

-ANGEL DIET

-ANGEL ANYWHERE

Type of account offered:

(based on securities & funds)

depository account

Trading account

Share trading through:

Online- ANGEL TRADE

- ANGEL INVESTOR

-ANGEL DIET

-ANGEL ANYWHERE

Offline-relationship manager
Transaction detail through: sms

Transaction report via courier

quarterly

Phone calls

Research: Research on 25 Agro Commodities, Precious and

Base Metals, Energy products and Polymers.

Other services: Seminars, workshops and investment camps for

investors. Publishing daily reports pertinent to the respective
market situation. No charges for extra transaction statement and
holding statement.

RELIGARE

Demat account offered for investor :

(based on group)

individual
account

joint account

NRI account

Types of demat account offered:

R ACE basic

R ACE lite (advanced)

 R ACE PRO
(professional)

Type of account offered:

(based on securities & funds)

depository account

Trading account

Share trading through:

ONLINE – ODIN software

OFFLINE- relationship manager

Transaction detail through: sms, courier, calls

HSBC SECURITIES

Services:

Demat account offered for investor :

(based on group)

• Resident Individual
• Non Resident Indian (NRI) / Foreign National (FN)
• HUF
• Minor account
• Domestic Company
• Foreign Corporate Body

Types of DEMAT account : SMART PLUS

 SMART ELITE

SMART POWER

Types of account offered:

(based on securities & funds)

Saving account

trading account

depositiry account

Share trading through: online: available

Offline: relationship manager

Transaction detail through: SMS, EMAIL, COURIER

Pledge Charges:

Creation/Closure 0.02% of the transaction

Charges mini Rs.50 plus NSDL/CDSL charges at actual
.Pledge Charges for Invocation 0.05% of
transaction charges subject to a mini. Rs 50

Remat charge: Rs.25 per certificate or 0.05% of the

value whichever is higher

Other services:

 Live Trading Calls

 Research Reports on Mail
 Invitation to HNI MEET’s
  Tele Trade Facility
 SMS Alerts
 Demo On Phone

COMPARATIVE CHART OF BROKING CHARGE’S OFFERED BY

VARIOUS FIRMS.

BROKING ACCOUN BROKERA MARGI AMC EXPOSU

FIRM T GE RATE N RE
OPENIN Intra- MONEY
G Delivery
CHARGE (%)

HDFC 0/- MIN 5000/- 500/- 5 TIMES

20/-,0.O4
%
INDIA 0/- 0.05- 0.50 2555/- 250/-,5 8 TIMES
INFOLINE 55 LT
ANGEL 731/- 0.03- 0.30 5000/- 300/- 4 TIMES
BROKING
HSBC 650/- 0.01- 0.60 5000/- 300/- 4 TIMES
SECURITI
ES
RELIGAR 0/- 0.03-0.30 5000/- 299/- 20
E LT TIMES

[AMC-account maintenance charge, LT-life time]

RESULTS:

1) From the comparative chart it is found that account opening

charge of indiainfoline, HDFC & religare is zero rupees.

2) Brokerage rate of Angel broking & religare is lesser than other

firm’s brokerage rate for transactions in share trading.
 3) Yearly account maintenance charge of India infoline is less
than others.

4) Religare provides the maximum exposure.

5) Brokerage charge of HSBC for delivery is higher than other

firms.

6) Minimum brokerage charge for intraday is provided by HSBC.

COMPARATIVE CHART FOR SERVICES OFFERED BY

VARIOUS FIRMS

SERV HDFC RELIGA HSBC ANGELBROKI INDIAINFOLI

ICES RE NG NE

Type IND, HUF , IND,NRI, IND, IND, JOINT, IND, HUF,

s of DM C, JOINT NRI,JOI NRI NRI,CORP,PF
acco NRI NT,COR A,PRFA
unt( ,CMA,CA,P P,HUF
grou A
p)

Type SINGLE R ACE , S ANG T,ANG SINGLE

s of R LITE, PLUS, I ,ANG D,ANG
dem R PRO S A
at BASIC ELITE,
acco S
unt POWER
Type TRADE,DEP TRADE, TRADE, TRADE,DEPO TRADE,DEPO
s of OSITORY,S DEPOSI DEPOS SITORY SITORY
acco AVING TORY OITORY
unts( ,SAVIN
secu G
rities
)

Mark AVL AVL AVL AVL AVL

et
Tran
sacti
ons

OFF AVL AVL AVL AVL AVL

MAR
KET
TAN
SACT
IONS

Secu AVL AVL AVL AVL AVL

rities
Lend
ing
&
Borr
owin
g

Inter AVL AVL AVL AVL AVL

-
Depo
sitor
y

NSD
L
Tran
sacti
ons

PLED AVL AVL AVL AVL AVL

GE

FREE AVL AVL AVL AVL AVL

ZING
/DEF
REZI
NG
OF
DEM
AT
ACC
OUN
T

TRA SMS,COR,C SMS,CO SMS,C SMS,COR,CA SMS,COR,CA

NSA ALLS R,CALLS OR,CAL LLS LLS
CTIO LS
N
Stat
eme
nts

CHA AVL AVL AVL AVL AVL

NGE
OF
SIGN
ATU
RE

CHA AVL AVL AVL AVL AVL

NGE
OF
ADD
RESS
E

CHA AVL AVL AVL AVL AVL

NGE
OF
BAN
K
ACC
OUN
T
DET
AILS

POW AVL AVL AVL AVL AVL

ER
OF
ATTR
ONE
Y

ONLI SPEED- ODIN S ANG T,ANG TT,5PAISA,II

NE e(easy) PLUS, I ,ANG D,ANG FLWESITE
SHA S A
RE ELITE,
TRA S
D POWER
ING
FACI
LITY
[AVL-available, TT-trader terminal, ANG I-angel investor, ANG D-
angel diet, ANG A-angel investor, ANG T-angel trade, IIFL-
Indiainfoline, IND-individual account, COR-courier, CA-
commodities account, CMA-clearing member account, PA-pool
account, S PLUS-smart plus, S ELITE- smart elite, SPOWER- smart
power, CORP-corporate, HUF-hindu undivided family,PFA-
Partnership firm account,PRFA –Proprietorship firm account]

RESULTS:

1) HDFC ,INDIA INFOLINE & HSBC provide more accounts

based on group to the investor rather than the three
accounts like individual account, joint account, NRI
account, which other firms provide.
2) HDFC, HSBC and RELIGARE gives facility of three type
of accounts based on securities & funds at the time of
DEMAT account opening, i.e. DEMAT account, Trading
account, & additional SAVING account.
3) All of the firms provide the facility of securities lending
& borrowing.
4) These firms also provide the investors with the facility
of inter depository transaction of securities.
5) An investor can avail the facility of pledge creation
from atmost all of the above broking firms taken for
comparision
6) All the firms’ freeze the investors demat account in the
chance of not using it for transactions or securities
trading. And also defreeze it on the request of the
requestor.
7) The transaction statement of the daily transactions of
trading is provide to the customer on quarterly basis
by all the broking firms via sms, courier and active
trading calls.
8) An investor can change the addresse or bank account
details and even can change signature, if he/she want
to do so by applying to their respective firms.
 9) Power of attorney service is provided by all broking
firms.
10) ONLINE & OFFLINE services is provided by every
firm.

8) Findings

1) Maximum exposure is provided by REILGARE for the intraday

trading, while other firms provided exposure not more than
8 times. An investor can avail the facility of maximum
exposure for more returns.
2) Account maintenance charge of the firms varies between
200 Rs-600Rs. There are only two LIFE TIME account
provider firms with no annual maintenance charge, INDIA
INFOLINE and RELIGARE.
3) Account opening charge is NILL of HDFC , INDIA INFOLINE &
RELIGARE
4) HDFC has the barier of minimum amount 0f 20 Rs for the
intraday transaction. While HSBC has the lowest intraday
charge of 0.01 % for intraday transaction.
5) SAVING account is much benefiter for he investor to transfer
his demat securities funds. Three of the firms are providing
these facilities of saving account with the opening of demat
account.
6) As the account opening charge is nill and also there is
no annual maintenance charge, and the most
important thing the brokerage of the firm is much
conventional RELIGARE can be one of the best firm
through which one can invest in the securities
market.

9) Conclusion
 Demat account is an easier way of holding
funds; it is a secure way of earning. There is no paper work
related with it which makes the transaction process easier and
convenient. There are various broking firms operating in the
market of which some of the leading firms are India infoline, hdfc
securities, hsbc securities, angel broking. These firms offer
various services like demat, mutual fund, insurance, commodity
trading etc. By comparison it has been found that these firms are
having different brokerage and different services for the
customers. The customers can choose the brokerage firm and
different service according to his needs and requirement.

As the comparision shows every firm work to

its best and more or less all are providing the same facility and
services to the investors. But the investor can choose according
to the brokerage rate and convenience to the firm.

10) Bibliography

1) Url//http/: www.india infoline.com

2)url//http/:www.angelbroking.com

3)url//http/:www.hdfc.com

4)url//http/:www.traderji.com

5)url//http/:www.google.com

6)url//http/:www.nse.com

7)url//http/:www.bse.com