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An Interaction with Business World Summer Internship Program – 2012 Summer Internship Program Report Shri Ram Murti Smarak International Business School (Approved by AICTE, Ministry of HRD, Govt. of India) Campus : 34 Km on NH-25, Lucknow-Kanpur HighwayAshakhera, Unnao-209 859, U. P. , India Ph. : +91-5143-278414/15/16, Fax : +91-5143-278410 City Office : UGF, Krishna Complex, 216, Chandganj Garden Road, Aliganj (Near Vivekanand Hospital), Lucknow-226 024, U. P. , India Ph. : +91-522-4011077 Fax: +91-522-4011088 SUMMER TRAINING REPORT ON PERCEPTION OF CUSTOMERS TOWARDS SHCIL AND ITS PRODUCTS

SESSION: 2011-2013 Under the Supervision of: Prepared By: Mrs. kashmira Indu Shekhar Branch Manager PGDM (2011-13) Subhash Marg , Raja Bazar Roll. No. 1101046 Lucknow- 226003 ACKNOWLEDGEMENT Working in an organization as a trainee provides a medium to look into and experience the practices and procedures of the corporate sector. The Stock Holding Corporation of India Ltd. ave me a lot of exposure of the capital market. During my training period I received unconditional help my every member of the Stock Holding Corporation. Firstly, I would like to express my gratitude to Prof. Shyamal Gupta (Director, SRMS International Business School, Lucknow) and to Siddiqui Ajam (Trainning & placement Officer, SRMS international Business School, Lucknow) for their efforts to place me at Stock Holding Corporation Of India limited. I am also thankful to Mr. Satendra Tiwari (Regional Manager, SHCIL, Lucknow) for permitting me to work as a trainee in SHCIL.

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My sincere thanks to Mrs. Kashmira (Branch Manager, SHCIL, Subhash Marg Lucknow) for giving his whole hearted support during my training period and providing me with valuable information. Finally, I would like to thank my friends, customers of SHCIL and all the people who helped me in the successful completion of my project. PREFACE In a professional course like PGDM the significance of practical knowledge through summer training is imperative as one gets an opportunity to learn about a wide range of corporate activities.

Depositories in India till now have made way for the elimination of market risk associated with physical holding in the settlement of securities by providing a highly efficient clearing and settlement system. Having pioneered dematerialization Stock Holding Corporation of India ltd. is the first Depository Participant (DP) which is registered with the National Securities Depositories Ltd. It has been my best and sincere effort to collect information from various sources to make this project effective.

In today’s competitive environment of depository services an attempt is made to understand the trading and settlement of securities through this project work. CONTENTS PART 1: Introduction to SHCIL Dematerialization * Meaning * Procedure Re-materialization * Introduction * Features * Procedure * Precaution Depository * Introduction * Advantages * Bank-Depository-An Analog * Services provided by depository Depository Participant (DP) * Introduction * Opening an Account with DP Depository in India * NSDL * CDSL PART 2: Products of SHCIL * Add Shares * Equibuy * Fund Invest * GOI Bonds * Education Loan (Credila) * Stock Direct New Pension System Services of SHCIL * Custodial Services * Depository Participant Services * DEMAT * Pledge * Derivatives Services * Clearing Member * NRI Services SWOT Analysis PART 3: * Project Objective * Research Methodology

* Analysis of Questionnaires * Consumer View Chart in Relation to SCHIL * Conclusion and Suggestion Annexure PART 1 INTRODUCTION TO SHCIL Stock Holding Corporation of India ltd. (SHCIL) was incorporated at the special initiative of the government of India as a public ltd. Company in 1986. It has been jointly promoted and owned by the all India banks and financial institutions, viz. LIC, GIC and its subsidiaries, ICICI bank, UTI, IDBI, IFCI and IIBI, all leaders in their fields of business. SHCIL began by offering custodial and post trading services adding depository services and other services to its portfolio over a period of time. SHCIL has established itself in India as a one-stop solution provider in the financial services domain. SHCIL VALUES * Safety and efficiency of operations is a hallmark of SHCIL. * Professionalism and integrity. * Customer first. * Relationship building. * Commitment to quality irrespective of asset size.

WHY WOULD YOU PREFER SHCIL AS A SERVICE PROVIDER * Well integrated front and back office, paper and electronic systems. A focused client relation team to manage your needs and queries. A single point contact for your comfort. * In-house capability to address all it needs in terms of software development, maintenance, back-office processing, database administration, network maintenance, backups and disaster recovery. * Multilevel security is maintained in software, applications and guards to access to various data, client and internal reports. * Expertise in running processes using digital signatures. Regular audits, internal and external, by SEBI, depositories, clients and compliance to rules and regulations. * Constant review and benchmarking of processes to ensure adherence to global best practices. * Insurance cover with international re-insurance. * Full confidentiality of business operations. DEMATERIALIZATION Dematerialization is a process by which share certificates are converted into electronic form. If you own shares of a company then you must have the possession of the share certificates. Dematerialization means surrendering the physical form of shares to a depository and receiving the shares electronically.

A depository is like the central bank of the country and depository participants (DPs) are like the banks with which you can open an account so as to enable the depository to credit your account with these shares. According to the securities and exchange board of India (SEBI) guidelines- banks, custodians and stock-brokers can become DPs. An investor submits his shares to the DP who will in turn send the shares to the company for dematerialization. This is a process by which the company cancels the physical shares and credits your account with an equal number of shares.

If you are holding shares for many years it is quite likely that the company may ask for a reconfirmation of your signature as there may be some differences in the signatures in their records and your current signature. Once the account is opened and shares are dematerialized buying and selling of these shares is done through this account. The DP gives each investor or ‘account holder’ a passbook (just like a bank passbook) or a statement of holdings which is regularly updated. When shares are converted into the electronic form they will be credited to your account and if they are sold they will be debited.

At the end of every fortnight you will receive a statement of account showing the number of shares debited and credited into your account. When trading is done through the electronic mode investors have to pay fees similar to the brokerage. However the charges are lower than the brokerage as the physical counting of shares is absent. While it is yet not compulsory that all the shares listed on the stock exchanges are dematerialized the NSDL regularly announces the companies whose shares have to be compulsorily dematerialized. But there is a steady increase in the number of companies trading in the dematerialized shares.

Overall, it is said that the benefits of having a dematerialized or book-entry holding through an account are: Modernism-electronic transactions take full account of modern IT facilities. Velocity of transactions-the transfer of securities by mere accounting entries allows for a rapid and efficient disposition of interests. Security-risk associated with physical securities such as delay or loss in transit, theft and mutilation are eliminated. The concept of an ‘odd lot’ in respect of dematerialized securities stands abolished as any amount can be a market lot.

Sometimes dematerialized securities attract lower margin and lower interest rates compared to physical securities. IS DEMATERIALIZATION OF SECURITIES COMPULSORY? According to the depositories act, 1996, an investor has the option to hold securities either in physical or electronic form. However, SEBI has notified that settlement of trades in listed securities should take place only in the DEMAT mode. Although, trades up to 500 shares can be settled in physical form, physical settlement is virtually not taking place for the apprehension of bad delivery on account of mismatch of signatures, forgery of signatures, fake certificates, etc.

PROCEDURE FOR DEMATERIALIZATION * Open a DEMAT account with DP. * Fill the DEMAT requisition form (DRF) and submit the same with the physical certificate/s to the DP for dematerialization. * DP defaces and sends the certificates to the issuer/registrar who credits an equivalent number of securities in the DEMAT account maintained by CDSL. * For each ISIN, a separate DRF has to be used. REMATERIALIZATION Re-materialization is the process by which a client can get his electronic holdings converted into physical certificates. The client has to submit the e-materialization request to the DP with whom he has an account. The DP enters the request in its system which blocks the client’s holdings to that extent automatically. The DP releases the request to NSDL and sends the request form to the issuer/R&T agent. Thereafter, the client’s blocked balances are debited. FEATURES * A client can rematerialize his dematerialized holdings at any point of time. * The re-materialization process is completed within 30 days. * The securities sent for re-materialization cannot be traded. PROCEDURE FOR REMATERIALIZATION The client will submit a request to the DP for re-materialization of holdings in its account. * On receipt of the request form the DP will verify that the form is duly filled in and issue to the client, an acknowledgement slip, signed and stamped. * The DP will verify the signature of the client as on the form with the specimen available in its records. * If the signatures are different the DP will ensure the identity of the client. * If the form is in order the DP will enter the request details in its DPM (software provided by NSDL to the DP).

While entering the details if it is found that the client’s account does not have enough balance, the DP will not entertain the request. * The DP will intimate the client that the request cannot be entertained since the client does not have sufficient balance. * If there is sufficient balance in the client’s account the DP will enter the request in the DPM and the DPM will generate a re-materialization request number (RRN). * The RRN so generated is entered in the space provided for the purpose in the re-materialization request form. Details recorded in the RRN should be verified by a person other than the person who entered the data. The request is then released to the DM by the DP. * The DM forwards the request to the issuer/R&T agent electronically. * The DP will fill the authorization portion of the request form. * The DP will then dispatch the request form to the issuer/R&T agent. * While processing the request, the issuer /R&T agent may report some objections. Depending on the nature of objection, the issuer/R&T agent may reject the request or process it partially, seeking rectification for the remaining and send an objection memo to the DP. The issuer/R&T agent accepts the request for re-materialization prints and dispatches the certificates to the client and sends electronic confirmation to the DM. * The DP must inform the client about the changes in the client account following the acceptance of the request. PRECAUTIONS * The client has to mention the lot type in the re-materialization request form. * Securities sent for re-materialization cannot be traded. Before initiating a re-materialization request in a security, the client must ensure that he has sufficient free balances in that security in his depository account.

DEPOSITORY INTRODUCTION 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 de-materialize them (so that they exist only as electronic records). India has chosen the dematerialization route. In India, a depository is an organization which holds the beneficial owners’ 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 a registered DP. ADVANTAGES OF DEPOSITORY SYSTEM * Elimination of bad deliveries and all risks associated with physical certificates such as loss, theft, mutilation, etc. * No stamp duty. * Immediate transfer and registration of securities. * Faster settlement cycle. * No risk of buying fraudulent certificates. * No courier/postal charges. * Reduced record keeping. * One investor account for all shares. DEPOSITORY PARTICIPANT In India, a depository participant (DP) is described as an agent of the depository.

They are the intermediaries between the depository and the investors. The relationship between the DPs and the depository is governed by an agreement made between the two under the depositories act. In a strictly legal sense, a DP is an entity who is registered as such with SEBI under the provisions of the SEBI act. As per the provisions of this act, a DP can offer depository-related services only after obtaining a certificate of registration from SEBI. SEBI (D&P) regulations, 1996 prescribe a minimum net worth of Rs. 0 lakhs for stockbrokers, R&T agents and non-banking finance companies (NBFC), for granting them a certificate of registration to act as DPs. If a stockbroker seeks to act as a DP in more than one depository he should comply with the net worth criterion separately for each such depository. No minimum net worth criterion has been prescribed for other categories of DPs. NSDL requires a minimum net worth of Rs. 100 lakhs to be eligible to become a DP as against Rs. 50 lakh prescribed by SEBI (D&P) regulations. OPENING AN ACCOUNT WITH DP First an investor has to approach a DP and fill up an account opening form.

The account opening form must be supported by copies of any one of the approved documents to serve as proof of identity (POI) and proof of address (POA) as specified by SEBI. Besides, production of PAN card in original at the time of opening of account has been made mandatory effective from April 01, 2006. All applicants should carry original documents for verification by an authorized official of the depository participant, under his signature. Further the investor has to sign an agreement with DP in a depository prescribed standard format which details the rights and duties of the investor and the DP.

The DP should provide the investor with a copy of the agreement and the schedule of charges for their future reference. The DP will open the account in the system and give an account number, which is also called BO ID (beneficiary owner identification number). The DP may revise the charges by giving 30 days notice in advance. SEBI has rationalized the cost structure for dematerialization by removing account opening charges, transaction charges for credit of securities, and custody charges vide circular dated January 28, 2005.

Further, SEBI has vide circular dated November 09, 2005 advised that with effect from January 09, 2006 that no charges shall be levied by a depository on a DP and consequently by the DP on a beneficiary owner (BO) when a BO transfers all the securities lying in his account to another branch of the same DP or to another DP of the same Depository or another depository provided the BO account/s at transferee DP and at transferor DP are one and the same, i. e. identical in all respects. In case the BO account at the transferor DP is a joint account, the BO account at transferee DP should also be a joint account in the same sequence of ownership.

BANK DEPOSITORY – AN ANALOGY BANK| DEPOSITORY| Holds funds in an account. | Hold securities in an account. | Transfers funds between accounts on the instruction of the account holder. | Transfers securities between accounts on the instruction of the account holder. | Facilitates transfer without having to handle money. | Facilitates transfer of ownership without having to handle securities. | Facilitates safe-keeping of money. | Facilitates safe-keeping of securities. | SERVICES PROVIDED BY DEPOSITORY Dematerialization (known as DEMAT) – converting physical shares into electronic form. * Re-materialization (known as REMAT) – is reverse of DEMAT, i. e. getting physical certificates from the electronic securities. * Transfer of securities – change of beneficial owner. * Settlement of trades done on exchange connected to the depository. * Pledge/hypothecation of DEMAT shares, viz. , loan against shares. * Electronic credit in public offerings of the companies. * Non-cash corporate benefits, viz. bonus/rights – direct credit into electronic form. Depository restricts the risk of fraud. DEPOSITORIES IN INDIA Currently there are two depositories operational in the country: (1) National Securities Depository Limited. (2) Central Depository Services Limited. NATIONAL SECURITIES DEPOSITORY LIMITED (NSDL) Although India had a vibrant capital market which is more than a century old, the paper based settlement of trades caused substantial problems like bad delivery and delayed transfer of title till recently. The enactment of depositories act in august 1996 paved the way for establishment of NSDL, the first depository in India.

This depository promoted by institutions of national stature responsible for economic development of the country has since established a national infrastructure of international standards that handles most of the securities held and settled in dematerialized form in the Indian capital market. Using innovative and flexible technology systems, NSDL works to support the investors and brokers in the capital market of the country. NSDL aims at ensuring the safety and soundness of Indian marketplaces by developing settlement solutions that increase efficiency, minimize risk and reduce costs.

At NSDL we play a quiet but central role in developing products and services that will continue to nurture the growing needs of the financial services industry. In the depository system securities are held in depository accounts which are 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 risks and hassles normally associated with paperwork. Consequently the cost of transacting in a depository environment is considerably lower as compared to transacting in certificates. CENTRAL DEPOSITORY SERVICES LIMITED (CDSL)

A depository facilitates holding of securities in the electronic form and enables securities transactions to be processed by book entry by a depository participant (DP) who as an agent of the depository offers depository services to investors. According to SEBI guidelines financial institutions, banks, custodians, stockbrokers, etc. are eligible to act as DPs. The investor who is known as beneficial owner (BO) has to open a DEMAT account through any DP for dematerialization of his holdings and transferring securities. The balances in the investors account recorded and maintained with CDSL can be obtained through the DP.

The DP is required to provide the investor, at regular intervals, a statement of account which gives the details of the securities holdings and transactions. The depository system has effectively eliminated paper-based certificates which were prone to be fake, forged, counterfeit resulting in bad deliveries. CDSL offers an efficient and instantaneous transfer of securities. CDSL was promoted by Bombay stock exchange limited (BSE) jointly with leading banks such as State Bank Of India, Bank Of India, Bank Of Baroda, HDFC BANK, Standard Chartered Bank, Union Bank Of India and Centurion Bank.

CDSL was set up with the objective of providing convenient, dependable and secure depository services at affordable cost to all market participants. Some of the important milestones of CDSL system are: * CDSL received the certificate of commencement of business from SEBI in February, 1999. * Honorable former union finance minister, Shri Yashwant Sinha flagged of the operations of CDSL on July 15, 1999. * Settlement of trades in the DEMAT mode through BOI shareholding limited, the clearing house of BSE, started in July, 1999. All leading stock exchanges like the national stock exchange, Calcutta stock exchange, Delhi stock exchange, Ahmedabad stock exchange, et al have established connectivity with CDSL. * At the end of December, 2007, over 5000 issuers have admitted their securities (equities, bonds, debentures, commercial papers), units of mutual funds, certificate of deposits, etc. into the CDSL system. PART 2 PRODUCTS OFFERED BY SHCIL (A) ADD SHARES INTRODUCTION * SHCIL arranges loan against DEMAT shares. * Tie-up with reputed banks which offer you the most competitive interest rates in the market. You can use the shares in your free account as collateral and take a loan from any of our empanelled banks. * SHCIL completes your documentation and processing and gives you a cheque within 48 hours of application. * This is a pure value add to your depository account with us. * Add shares are available at SHCIL centers in all the major cities. FEATURES * Loan against DEMAT shares held in the DP account with SHCIL. * Competitive interest rates from a range of banks SHCIL has tied up with. * SHCIL processes the entire paperwork required with the bank. The service is available at any of over 100 branches of SHCIL. ADVANTAGES * Our tie ups with banks give you a wider range of banks to choose from. This leads to a wider range of specified and non-specified shares to get loan against. * The add shares team helps you with the paper formalities precedent to a loan. * You can now get a loan at a competitive interest rates and margins. This is a resultant of their tie up with a wide range of banks. * Add shares simplify long-winded loan procedures for you and facilitates early disbursements of funds. Add shares are available at any of our branches numbering over 120. (B) EQUIBUY INTRODUCTION Even after payments have been made we have to wait patiently to see those shares reflected in the DEMAT account. With the odd surprise of not seeing them at all which you cannot discount! As your depository participant SHCIL assures you safe delivery of shares every time you buy on the exchange. We have lined up a panel of reputed brokers who process your orders on priority. Our positions as the clearing corporations of leading stock exchanges ensures smooth and sure credits in your account.

An initial advance and timely replenishments into the purchase advance account take care of the payment for your purchases. Go through the detailed EQUIBUY procedure and you will see how EQUIBUY in a one stop shop for your share purchases. FEATURES * An EQUIBUY instruction from you gets the shares credited into your account the next day of payout. * Payment for your purchase made from a running account called purchase advance into which you remit an initial advance of Rs. 1000 and maintain a minimum balance of Rs. 250 at all times. * Choose one or more brokers from a list of 77 brokers empanelled with SHCIL.

Registration with broker is not necessary if you are already registered under any of our other product schemes. * Purchase on BSE or NSE. ADVANTAGES * Buy shares with a single instruction and get an assured credit of shares into your account the next day of payout. Leave the settlement procedures and broker interaction to us. * Affect a faster turnaround of your portfolio. * EQUIBUY has a very nominal charge attached to it. * An initial advance of Rs. 1000 in the purchase advance account and replenishments, as and when necessary, take care of payment for your purchases. Choose the exchange you want to buy from- BSE or NSE. * Choose from a range of 77 SHCIL empanelled brokers to execute your purchases. * EQUIBUY from the SHCIL center closest to you. Select from 120 plus SHCIL centers across the country. PROCEDURE * If you are not already registered with one or more of our 77 empanelled brokers under any of our other product schemes, register yourself by filling up a broker registration form. * Fill up a remittance slip to open the purchase advance account by making an initial advance of Rs. 1000. * Approach any SHCIL branch and submit a purchase request slip. Your request will be good till the end of the day. If the shares are not purchased before the end of the day your request lapses and a fresh request can be submitted the next day. * Your purchase request is transmitted to the broker as soon as you place request. * The broker executes the trade and confirms trade details to SHCIL. The payment for the shares purchased along with the service charge is made from the purchase advance account. * The shares get credited into your account the next day of payout. TARIFF On Delivery Basis * 0. 5% on the value of transaction on delivery basis with a minimum of Rs. 65 per client per broker settlement. (C) FUND INVEST INTRODUCTION Fund invest is a basket of financial products ranging from fixed income securities like fixed deposits, infrastructure bonds and capital gain bonds to variable income securities like initial public offers (IPOs) of equities and mutual funds. It is an attempt to offer financial products that that cater to the various investment needs of our esteemed clients. An effort to guide the investor to a product portfolio that best suits his risk-return profile.

Applications for investments can be sourced from any of the SHCIL offices. Apart from guiding our investors to pick up the right combination of investment instruments we help them in ‘after-sales’ service by acting as an interlocutor between the investor and the issuer of the securities. SHCIL is an AMFI registered mutual fund advisor (ARMFA). FEATURES At present, SHCIL is distributing schemes of 28 different mutual funds. All these funds offer a wide variety of investment option depending on the risk appetite of the investor. Some of the major categories are:

Debt funds: The debt funds have the mandate of investing primarily in debt papers. Equity funds: The equity funds have the mandate of investing primarily in equities. Balanced funds: The balanced funds have the mandate of investing both in equities as well as debt papers. Capital gain bonds come under 54EC capital gains bonds, where the investors get exemption from capital gain tax. These are ‘on-tap’ issues. At present, SHCIL is distributing capital gain bonds of rural electrification corporation, national housing bank, small industries development bank of India and national highway authority of India.

Infrastructures bonds are issued by ICICI bank and IDBI, with section 88 as the main feature. Private placements: debt papers issued for private placement with structural obligations by the state and central government typically targeted for trusts and provident funds are distributed by stock holding. Fixed deposits: fixed deposits with high investment rating and issued by blue-chip corporate are distributed by us. These papers generally offer 50 to 100 basis points more than bank fixed deposits of comparable period. At present, we are distributing IDBI SUVIDHA fixed deposits and HDFC fixed deposits.

Initial Public Offer: IPOs offered by blue-chip corporate can be subscribed from stock holding. Issues recently distributed by us are Canara Bank, Allahabad Bank, Bharti Tele and I-Flex. (D) GOI BONDS INTRODUCTION Savings bonds are issued by RBI on behalf of government of India in the following series: 8. 0% taxable bonds: These bonds are held in electronic form in an account called bond ledger account (BLA). Bond ledger accounts can be opened and operated with RBI designated receiving offices. SHCIL has been designated as one of the receiving offices by RBI for this purpose.

Subscriptions for savings bonds can be submitted at any of our branches. Savings bonds being sovereign in nature are absolutely safe and an attractive investment option in the current volatile market situation. The following categories can subscribe to savings bonds: Category of investor 8. 0% (taxable) Individual * His or her individual capacity. * Individual capacity on joint basis. * Individual capacity on anyone or survivor basis. On basis of a minor as father/mother/legal guardian. HUF (Hindu Undivided Family) Charitable Institution * Charitable institution to mean a company registered under section 25 of the Indian companies act, 1956. * An institution which has obtained a certificate of registration as a charitable institution in accordance with a law in force. * Any institution which has obtained a certificate rom income tax authority for the purpose of section 80G of the income tax act, 1961. University * University means a university established or incorporated by a central, state or provincial Act and includes an institution declared under Section 3 of the University Grants Commission Act, 1956 to be a university for the purposes of the act. FEATURES The salient features of the bonds are listed below: Feature Investment limitInterest optionTax benefitsTransferabilityNominationRepaymentPremature encashment| 8. 0% (taxable)Minimum investment is Rs. 1000 and there is no maximum limit.

Payable half yearly on 1st Feb. , 1st Aug or cumulative on maturity. Interest is taxable under IT Act, 1961. Exempt from wealth tax under Wealth Tax Act, 1957. Non- transferable, non tradable and cannot be used as collateral for borrowings. Available. Only sole holder or the surviving holder can nominate. Repayable on expiry of 6 years from date of issue. No interest would accrue after maturity. Not available. | ADVANTAGES * Hassle free maintenance: the GOI bonds held in electronic form in an account called bond ledger account. This ensures smooth investing minus paperwork. Electronic clearing services: you can avail of electronic clearing system (ECS) services. This ensures automatic credit of benefits and redemptions when they accrue. * Easy access: you can apply for subscriptions into these bonds in any SHCIL center across the country. * Dispatch: certificate of holdings are dispatched to the client through courier on realization of subscription. PROCEDURE Subscription is a very simple process. Obtain the application form from any of SHCIL notified centers across India. SHCIL officials will assist you in filling up of your application form.

Fill up all the relevant columns provided in the application form. E. g. for ECS facility, a proof of the ECS account like cancelled Cheque/bankers certification authenticating the account number and MICR details. Attach a Cheque /draft/pay order in accordance with the series of subscription you want to make for the requisite amount in favor of: ‘Stock holding corporation of India ltd. a/c GOI 8. 0% savings (taxable) bonds, A certificate of holding will be issued specifying the investment(s) made under the bond ledger account. The date of investment will be the date of realization of the instrument(s).

CHECKLIST Kindly attach the following documents as per the checklist below: * Document 8. 0% (taxable) * ECS mandate documents * Power of attorney documents (if appointed) * HUF declaration (for HUF investors only) * Certificate of identity – for address change and nominee claims Minor – birth certificate, legal or natural guardian certificate * Form 60 or PAN for investments above Rs. 50000. * Charitable institutions- TDS exemption certificate from IT department, board resolutions, trust deed * Form 15H (individuals claiming exemption of TDS) * Universities – incorporation certificate under section 3 of the University Grants Commission Act, 1956. (E) EDUCATION LOAN (CREDILA) INTRODUCTION

SHCIL, a company promoted by education loan to the student who wants to secure his/her future. They are providing education loan with the help of Credila financial services viz. subsidiary of Housing Development Finance Corporation Limited (HDFC). TYPES OF LOAN They are providing three types of education loan to student for shaping their future. * Indian students already in the USA * Indian students going overseas * Indian students attending colleges in India CHALLENGES FACED BY STUDENT Students face many challenges while securing education loans.

They have to face these challenges in Abroad as well as in India. Some of the issues faced by students included. STUDY IN ABROAD •For students going to the USA, UK, Canada, Australia, etc. there are number of activities and formalities which take away the time. Running around from one branch to the other and doing multiple rounds for education loans get very difficult •Visa interview deadlines keep approaching fast and the education loan approval letter is required well in time to set up the visa interview.

Hence, there is a tremendous time pressure to get education loan in time •Flexibility in terms of loans which need to be customized to the requirements of the students and their respective courses •Ability to find the required margin money (portion of the fees that is to be paid by students/parents which is not covered by the loan) •Required loan amount is more than the value of the collateral security •Ability to prove that the University, College and the applied Course is appropriate. This can be quite challenging if the decision maker is not aware of the thousands of valid and accredited educational choices available in today’s fast changing world of education) •Ability to repay the loan from the USA •Ability to have customer service from the USA with a toll free number •Ability to get web-based access to the loan account with web enabled transaction processing inclusive of electronic payments, etc. Credila is a specialized lender for Education Loans.

Credila has invested time and resources to set up appropriate systems, processes and know-how related to the education industry. Credila has numerous databases on education sector. Credila’s credit scoring model for the approvals of loans is designed specifically for education loans. Credila, therefore, understands problems, challenges and issues faced by the students and their parents. Credila’s objective is to work closely with students and parents to try to identify the appropriate education loan programs for them.

STUDY IN INDIA • Flexibility in terms of the loans which need to be customized to the requirements of the students and their respective courses • Ability to find the required margin money (portion of the fees that is to be paid by students/parents which is not covered by the loan) • Required loan amount is more than the value of the collateral security • Ability to prove that the University, College and the applied Course is appropriate. This can be quite challenging if the decision maker is not aware of the thousands of valid and accredited educational choices available in today’s fast changing world of education) • Ability to get the loan approval letter in time to meet the admission related deadlines • Ability to get appropriate customer service during the repayment cycle • Ability to get web-based access to the loan account with web enabled transaction processing inclusive of electronic payments, etc. Credila is a specialized lender for education loans.

Credila has invested time and resources to set up appropriate systems, processes and know-how related to the education industry. Credila has numerous databases on education sector. Credila’s credit scoring model for the approvals of loans is designed specifically for education loans. Credila, therefore, understands problems, challenges and issues faced by the students and their parents. Credila’s objective is to work closely with students and parents to try to identify the appropriate education loan programs for them. FEATURES Competitive rate of interest: 13. 50% p. a. * * Get tax benefits under Section 80(E) of Income Tax Act of India * Education Loan Home Delivered! * Flexible choices of repayment terms * Loan up to 100% of educational expenses. No margin money required. * Flexibility on collateral security * Loan sanction before admission * Multi city co-borrowers accepted * Web enabled billing & servicing Eligibility * Borrower must be an Indian citizen * Co-borrower must be an Indian citizen * Borrower must be 18 years of age or older Co-borrower must have a bank account in any bank in India with check writing facilities * Confirmed admission in the colleges before disbursement * Borrower and Co-borrower to meet Credila’s underwriting criteria LOAN AMOUNT Minimum Loan Amount * Indian Rupees 1,00,000 Lifetime Maximum Loan Amount * Indian Rupees 20,00,000 (F) STOCK DIRECT INTRODUCTION Stock direct has changed the way you look at trading in securities. From your desktop you can now send instructions for buying/selling shares. A three way hands shake between leading brokers, national and international banks and SHCIL is the crux of stock direct.

Stock direct – India’s first online trading platform was launched in 1999. Today stock direct is the most secure online trading platform which combines encryption technology/digital signature features. A few clicks will seamlessly check your funds and security positions, route the order to the broker of your choice and do the necessary fund and share movements for you. FEATURES * A single instruction enables you to combine your trading, fund and shares transfer with SHCIL taking care of the settlement. * Trade from home on the internet with floppy containing stock direct software. Security measures based on encryption and digital signature technology make your online deals 100% secure. * Open a purchase advance account with SHCIL to facilitate your fund transfers. * Choose the exchange to trade from BSE and NSE. ADVANTAGES One Stop Shop Give a single instruction towards funds confirmation for buy orders, order routing to your broker and fund and share movements for settlement purpose. Convenience Trade at home through net. Security Digital signature technology based on 128 bit encryption makes your transactions 100% secure. Cost effective No minimum value of transaction.

Choice of Stock Exchanges Buy/sell shares on BSE/NSE PROCEDURE * If you already have a DEMAT account with us, fill up a conversion form to convert your DEMAT account to stock direct. If you do not have a DEMAT account, fill up a DEMAT account opening form and submit it at any of our branches. * Register with any of our empanelled brokers by filling up the broker registration form and submit it along with the account opening/conversion form. * Open account with SHCIL, a running account called the purchase advance by remitting an initial advance of Rs. 1000 by way of Cheque /DD.

TARIFF Brokerage 0. 50% with a minimum of Rs. 50 per client per broker per settlement*. Normal ISA charges applicable as per client’s tariff scheme. Service tax applicable as per GOI notifications. Media charges (one time): Rs. 100 + Service tax. (G) NEW PENSION SYSTEM INTRODUCTION Govt of India promoted PFRDA (Pension Fund Regulatory and Development Authority) has introduced the New Pension System (NPS) to all citizens of India with the objective of promoting old age income security. NPS empowers subscribers to plan their own pension under the “Defined Contribution” concept.

It not only helps to save for post retirement spending but is also a good investment and tax planning tool. PFRDA appoints Points of Presence (POPs) which act as the link between subscribers and PFRDA to promote the NPS. PFRDA also appoints professional fund managers for subscribers to choose among them to manage their pension contributions. SHCIL has been appointed as Point of Presence (POP) by PFRDA for the New Pension System. SHCIL’s designated branches offer the full spectrum of NPS services and facilities to all citizens. FEATURES Services Offered to a Defined Contribution Scheme Coordination with all client locations/branches for receipt of monthly contribution data of members. * Pension contribution account maintained at individual member level. * Reconciling contributions with remittance amounts. * Settling members claim on separation. * Liaoning with insurer for purchase of annuity. * Handling disbursements to members on commutation. * Distribution of earnings to eligible members, annually. * Providing account statement to members annually. * Maintain books of accounts of the trust. * Handling audit and filing tax returns. * Services offered to a defined benefit scheme Service records of members maintained in electronic form. * System generated pension orders, uniquely referenced and supported by necessary documents. * Tracking pension orders during the period of survival of member. * Updating of software to incorporate changes taking from time to time in pension rules and regulations. ADVANTAGES * Customized pension fund administration software to meet the unique features of the pension scheme. * Records of members maintained in electronic form to enable quick access and retrieval of data. * System generated pension orders, uniquely referenced with necessary supporting documents. Employees benefit from timely release of pension orders. * Substantial saving in cost achievable through outsourcing. * Benefit from SHCIL’s vast and rich experience in providing back office services to the financial services industry as a whole and in the area of pension administration in a particular. * Application of latest IT technology to smoothen operations and achieve speedier settlement. * Benefit from the wide network of SHCIL offices across the country. SERVICES OFFERED BY SHCIL (1) CUSTODIAL SERVICES INTRODUCTION SHCIL provides first-rate custodial services to India’s leading Financial

Institutions, Insurance Companies, Mutual Funds, Foreign Institutional Investors (FII’s), Banks, Indian and Foreign Venture Capital Companies, Funds, PF Trusts ;amp; Corporate. SHCIL,s core competence in custodial business spans 18 years, with a dedicated pool of trained and experienced professionals working literally round the clock using state-of-the-art computer systems and world class technology. SHCIL maintains dedicated communication channels, well connected to client institutions, stock exchanges, clearing houses and depositories, thus maintaining process and quality leadership.

As a custodian entrusted with sizable assets, SHCIL is continuously leveraging its scale and capabilities to help its clients mitigate risk and optimize efficiencies with greater control. CLEARING AND SETTLEMENT SERVICES POST TRADING SERVICES SHCIL has specially trained personnel handling thousands of trade instructions involving large values on sophisticated systems using digital signature on STP (straight through processing) systems, ensuring smooth trade confirmations to stock exchanges. SHCIL provides the choice of multiple STP service provides enabling competitive advantage of efficient settlements.

SHCIL seamlessly monitors trades and ensures failed trade management with reporting and resolution of mismatches, etc. At SHCIL, a client has the flexibility of settlement of funds through a wide panel of banks having RTGS facility. SETTLEMENT SERVICES Most of the institutional trades are settled through the clearing house of the stock exchanges. As a custodian, SHCIL facilitates timely settlement of funds and securities. Funds are collected /deposited from/to client and settled with the clearing houses. Most of the institutional trades are settled in the depository mode.

For the institutional segment alone, SHCIL has a unique clearing code on the two principal stock exchanges and separate DPM units on both NSDL and CDSL. This ensures smooth settlement of transactions on both exchanges/depositories, based on the deliverables and receivables received by them for each settlement. Daily verification of settlements (auction/normal) facilitates smooth reconciliation of settlements of client’s trades and mitigates systemic risk. For debt market deals SHCIL ensures timely movement of securities and funds.

For the occasional delivery and receipt of securities in the physical mode, SHCIL ensures prompt scrutiny, processing and lodgment of securities with the respective company/ registrar and transfer agent, with the objective of final transfer to the purchaser, with objections handling if needed. SHCIL also ensures that delivery of physical securities to exchanges is handled strictly as per exchange regulations. PHYSICAL CUSTODY (VAULT) SERVICES SHCIL has extensive vault capacity with state-of-the-art technology. This includes tracking with bar-coding techniques.

Certificates are held in customized, fire resistant ‘modular sliding storage units’, with automated location tracking and logs with tight security. There are comprehensive document tracking and storage systems in place to hold investments in physical and electronic form. SHCIL tracks each and every security in the custody with absolute ease and tracks the status of investments at any point of time. Other security features include circuit TV, smoke detectors and fire extinguishers which are installed in the premises.

SHCIL relies on audit trials and physical reconciliation continuously to reconfirm validity of systemic data. SHCIL also periodically seeks reconfirmations from internal and statutory audit firms for adherence to the established best practices. INSTITUTIONAL DP SERVICES SHCIL has installed dedicated DPMs (depository participant modules) on both the depositories, viz. NSDL and CDSL. A dedicated institutional DP team at SHCIL addresses your need for all core DP services like account opening and maintenance, conversion of physical holdings into electronic form, ettlement of trade instructions, re-materialization, repurchase and pledge instructions, providing of holding and transaction statements and daily reconciliation of clients holdings. SHCIL also provides special services like electronic credit and corporate action follow up, reporting of saleable holding positions required by many fund managers, monitoring of CP redemptions, prepayments and providing customized reports like put/call forecasts, logical holdings and non equity holding reports. ASSET SERVICING SHCIL has dedicated teams to handle the various aspects of asset servicing.

The corporate actions team ensures forecast of all corporate actions and benefits accruing on a client’s holding, timely collection of monetary and non monetary benefits and cover all activities relating to a corporate event like calculation of entitlements, reconciling with companies/registrars prior to due date, collection of monetary corporate actions from the premises of company/registrar and transfer of same to clients. In case of any shortage, active follow-up with each company. Customized reporting to clients on the status of corporate actions is done periodically.

The primary markets team takes care of applications on behalf of clients for primary market issues, calculates the entitlements, follows up for allotment or refunds and sends customized reports to clients. The dedicated redemptions team tracks the payouts of various debt instruments held by SHCIL’s clients and monitors put/call options. This team ensures timely monetary collection and deposits and keeps track of the outstanding amounts and reinvestments. At the heart is the support provided by a highly specialized ‘Databank’ team, which is unique to SHCIL.

This team tracks over 8500 companies, over 12000 issued securities, 2500 registrars besides all relevant information available in all leading stock exchanges and depositories. The team ensures prompt availability of information on all corporate announcements, ISIN listings, etc. to the custodial teams and the information solely is for the benefit of SHCIL’s clients. Thus SHCIL is equipped to handle all types of instruments, listed on the BSE and NSE, money market instruments like CPs and CDs, all kind of debt instruments and unlisted securities.

CLIENT RELATIONSHIP MANAGEMENT Every institutional client is assigned to an experienced client relationship manager who assists in resolving special issues relating to the client. Over and above the services offered we have a premium offering called ADVAIT, an integrated, web based, online reporting system which provides a single window access to institutional reports with enhanced security features. (2) DEPOSITORY PARTICIPANT SERVICES INTRODUCTION Our depository participant services address your individual investment needs.

With a parentage of leading financial institutions and insurance majors and a proven track record in the custodian business, we have reiterated our past success by establishing ourselves as the first ever and largest depository participant in India. Form a tentative foray in 1998 into the individual investor arena to servicing around seven lakhs accounts, we have endeavored to constantly add and innovate to make business a pleasure for you. Our networked branches ensure we are available where you look out for us.

Fourteen depository participant machines (DPMs) connected to NSDL and seven connected to CDSL ensure fast and direct processing of your instructions. Our customer-centric account schemes have been designed keeping in mind the investment psyche of our clients. Your DP account with us takes care of your depository needs like dematerialization, re-materialization and pledging of shares. Matching of your scanned signature on every debit instruction with a digitally scanned original in our system makes all your trading transactions absolutely secure.

A proactive backup of tour instructions prior to execution in the depository makes us oblivious to system crashes. At SHCIL we place a very high premium on client reporting. Periodic statements sent to you keep you informed of your current account status. Dedicated customer care lines manned by trained staff answer your queries on DEMAT/trades/holdings. The latest in client response at SHCIL is Interactive Voice Response (IVR) system for round the system for round the clock information on your account. Registration on our website, SHCIL interactive, nables you to check your account – related information, stock market reports and statistics, corporate benefits declared by companies, real-time quotes of scrips on BSE and NSE and so much more online. OPEN ACCOUNT Before you open your account…. * You can collect your account opening form from any of our branches or download it from our site itself. * As prescribed by depository bye-laws, accounts have to be opened in the exact order in which the names(s) appear on the share certificate. * Remember that holding pattern AB is not the same as BA.

However, minor differences like abbreviations, spelling mistakes can be ignored provided signatures recorded with the registrar/company are the same. GET YOUR ACCOUNT OPENING FORM DETAILS RIGHT Check your form against these details: * All columns are filled in. write NA wherever not applicable. * Bank account number with complete address and 9 digits MICR numbers are filled correctly. This will facilitate effective disbursement of monetary corporate actions into your account. * Signature of account holders are always in black. If you would like to receive credit of shares purchased directly into your account, mark standing instruction as ‘yes’. YOUR ACCOUNT IS OPENED Once your account is opened, you will be allotted a client identity number. You will be sent an operating kit containing: * Details of your account as recorded by SHCIL. * Copy of the agreement entered into with SHCIL. * ‘Delivery instruction by client’ booklet allotted to your DEMAT account. This booklet helps you transfer shares from your account to broker account and other accounts. * Now you are ready to operate your DP account.

IMPORTANT POINTS * PAN mandatory. * SMS alerts for debits and failed trades provided by NSDL. CDSL is providing only for debits. Hence clients may get their mobile number and SMS flag updated. * As per the latest NSDL guidelines, client may give local address or correspondence address, depending on his preference to receive the communications from the companies. * Complete address of the bank branch, bank account number, account type and 9 digit MICR number is mandatory. Please provide the specimen copy of a Cheque for noting the correct 9 digit MICR code. At the time of account opening, clients are requested to provide the proofs for identification and address. The list may be provided. * Thumb impressions should be attested by a magistrate or a notary public or a special executive magistrate. * NSDL does not have the facility to operate a beneficiary account on ‘either or survivor’ basis. * The power of attorney should either contain a clause which gives power to sell or to deal with securities generally or a clause which gives power to operate depository account. NSDL has provided a sample clause in its circular number: NSDL/PI/2000/982 dated June 23, 2000. The sample clause is as follows: To sell or otherwise deal with or dispose-off and to purchase, subscribe or otherwise acquire in any manner from the market or under public or rights issue or otherwise and accept the transfers of any stock, funds, shares, debentures, government and other promissory notes, securities, bonds, annuities or other mercantile negotiable instruments which shall or may at any time belong to me or which hereafter be transferred to me, whether solely or jointly and whether in my own right or having any other interest of whatsoever nature and however arising and in any capacity whatsoever including those belonging to others with my name and for such purposes to sign, execute or endorse all instruments of transfer and other documents for any purpose whatsoever by virtue of these present”. NOMINATION FOR DP ACCOUNTS – INDIVIDUAL(S) BENEFICIARY ACCOUNTS As per the instructions received from the depositories, we can take cognizance of nomination only if it is submitted in the prescribed format and the same ahs to be registered with the depository participant (DP) under a ‘nomination registration number’ (NRN). In the absence of NRN, DP will not be able to transmit the securities in favor of the nominee only if it is registered and after duly submitting the prescribed documents. * If nomination has not been registered, account holders may submit the nomination form in the prescribed format to the nearest SHCIL center. On registration of the nomination, the NRN will be communicated to the account holder(s). In case nomination is not registered, securities can be transmitted to legal documents as per depository guidelines. MAINTENANCE Change in Permanent/Correspondence Address A request letter (format available on the site) signed by all the holders are required along with this photocopy of proof of identification and proof of new address is required. Please bring the originals with you for verification purpose. Client or the authorized bearer can visit our branch for the same. Copy of the last transaction statement received from SHCIL is also required. * Change in Signature * Request letter (format available) signed by the client. The new signature to be attested by the bank. The request may be submitted along with the copy of POI and the photocopy of the latest transaction statement received from SHCIL. Addition of PAN/MAPIN * Request letter by the client giving the PAN/MAPIN number. Account with Power Of Attorney These accounts can be operated by both the client and the POA holder. In case the client has given the POA in favor of two or more persons, then the mode of operation of the POA holders is also to be mentioned. In case the power of attorney is to be revoked, a letter signed by the client is required. Change of Telephone Number * Request letter signed by all the holders, with a photocopy of the recent telephone bill and proof of identification of one of the holder. Instructions by Fax * Clients may avail this facility by faxing their delivery instructions to SHCIL, by executing the fax indemnity. The format of the indemnity is as follows: Change in Standing Instruction For recording any change in the standing instruction (for receiving direct credits) in the DEMAT account, we require a letter signed by all the holders. Change in Power Of Attorney Details * If you have given POA details and you wish to operate the account yourself, the POA has to be revoked by you in writing. DEATH OF BENEFICIARY ACCOUNT HOLDER(S) – TRANSMISSION OF ACCOUNT Transmission of account takes place in the event of the death of the beneficiary account holder(s). There can be three situations in transmission of account. See which category you fit into and follow the relevant procedure: (1) When the account has joint holders and one dies. (2) When the account has a sole holder with a nominee. (3) When the account has a sole holder without a nominee.

If the shares are transmitted to beneficiary account of surviving holders and this beneficiary account is in a DP other than SHCIL. * Classify the transmission case into the above categories. * Over and above the documents explained above, the client master list from the target DP has to be submitted. Freezing Of Account An account is frozen /suspended: * Only on your instruction. * By competent authority, i. e. , by the depository/SEBI. * On receipt of court order. De-freezing Of Account De-freezing of an account takes place: * Only on your instruction. * For de-freezing pledge accounts, your instruction has to be accompanied by bank authorization. (3) DEMAT De-materialization is the process of conversion of shares from physical form to the electronic mode.

Our dedicated DEMAT team enable you to convert your physical holdings/debentures/bonds/G-SECS into electronic mode in a quick and hassle free manner. TRANSPOSITION CUM DEMATERIALIZATION The clients can get the securities dematerialized in the same account if the names appearing on the certificates match with the names in the DEMAT account but are in different order. This can be done by submitting the certificates along with the transposition form and the dematerialization request form (DRF). TRANSMISSION AND DEMATERIALIZATION In case of death of one or more of the joint folders, the surviving holder(s) can get the name(s) of the deceased deleted from the security certificate and get the same dematerialized.

Notarized copy of the death certificate, transmission form as per annexure OB and the dematerialization request form (DRF) have to be submitted by the surviving joint holder(s) along with the security certificates. As per SEBI, scrips can be divided as: * Scrips Eligible For DEMAT These scrips can be traded either in physical or electronic form. * Scrips falling under compulsory DEMAT These scrips can be traded only in electronic form. * Submit DEMAT Request Form. Once your demat account is opened with us and you have received your client identity number, you can start dematerializing your shares. You can submit the shares over the counter at any of our branches.

Do go through the tips given on filling up the DRF to avoid rejection. Your Shares Are Dematerialized * When the company gives you credit, these shares will reflect under ‘free’ column. Now you can sell these shares. In case the company is not satisfied with the details furnished, it will reject the shares. * If your shares have been rejected by the company, SHCIL will forward the shares to you on receiving them from the company. (4) PLEDGE You can pledge or hypothecate your dematerialized shares against loan or credit facilities extended by a pledgee who also has an account with a DP. The Pledge Procedure * Pledgor fills in a form requesting the DP to pledge the shares and hands it over to the DP. If the form is complete in all respects, the DP processes the form and generates a pledge/hypothecation instruction number for the request. * Securities to the extent of the instruction are debited from free or locked-in balances and credited as pledged balances of the Pledgor so that they cannot be used for any transactions. * The pledgee will submit a form to its DP to accept/reject the pledge/hypothecation request. * If the pledgee accepts the request by the pledgor, the acceptance is communicated electronically to the pledgor’s DP. Once the pledge’s DP confirms the acceptance of the pledge, the pledgor cannot cancel the pledge/hypothecation order.

The pledgee’s DP executes the pledge/hypothecation request as per the instructions given. * In case the pledgee rejects the pledge request, the pledgor’s DP is intimated electronically. Now the securities which were earlier credited as pledged balances will be credited to free/locked-in balances. * Once the loan is repaid by the pledgor, the pledgor initiates the closure of the pledge. The request for the closure is transmitted electronically to the pledgee’s DP. The pledgee’s acceptance/rejection of the request for the closure of pledge is transmitted electronically to the pledgor’s DP. * If the pledge is closed, the securities will be reflected as fee/locked-in balances. In case the pledgor defaults in repaying the loan to the pledge, the pledge instructs his DP to invoke the pledge/hypothecation. What You Need to Do? IF YOU ARE A PLEDGOR IF YOU ARE A PLEDGEE See to it that: The pledge/hypothecation request The form for accepting/rejecting the Pledge/hypothecation request is complete in all respects. The form agreement number, closure date, invoking the pledge/hypothecation pledgee details and details of the request is complete in all respects. securities. The form submitted for closure of pledge/hypothecation is complete in all respects. (5) DERIVATIVE SERVICES

SHCIL provides clearing services for derivative segment of BSE/NSE and commodity segment of MCX / NCDEX. (6) CLEARING MEMBER INTRODUCTION SHCIL’s long standing association with clearing members has enabled it to develop services based on an understanding of their working and their requirement for timely and accurate information. We accept deposits of base capital and additional base capital requirements stipulated by NSE for clearing members trading on its capital market segment. Besides, our new products with a broker empanelment clause ensure a mutually beneficial tie-up. Clearing members stand to earn a steady income from our product transactions and new add to their client base, while we capitalize on their rapports with the market.

We currently offer depository services to more than 680 clearing members of various exchanges connected with NSDL and CDSL. Our customer care lines answer all your DP queries while the Interactive Voice Response (IVR) system gives you information on your account and other valuable data like CC calendar details, tariff, ISIN information, etc. via telephone, fax and e-mail. ADVANTAGES * For institutional and retail clearing members we have customized tariff for clearing members benefitting. * Brokers having very high average trade value. * Brokers with big retail clientele. * Special tariffs for : * CM principal accounts. * NSCCL CM accounts. * Unified settlement pool accounts on CDSL. * SHCIL customer care help lines give timely and accurate information to CMs.

The interactive voice response (IVR) system at SHCIL gives round the clock information on holdings and transactions, pay-in/pay-out details, overdue cum holding details, etc. via telephone, fax or e-mail. * Updated transactions statements are available on the website free of any charge whatsoever. Members have a choice of accessing their statements date wise for the last one month or settlement wise for the same period. Current trading day transactions are also made available, updated to the hour. * Besides the transaction statements, the delivery-out report, which is an extremely critical report for clearing members, is also made available on the website, updated to the hour. OPEN ACCOUNT REQUIREMENTS

In case of proprietor’s account, if authorized signatory is a person other than the account holder; then the power of attorney is to be submitted by the proprietor giving authority to that person. IF YOU ARE SHIFTING ANOTHER DP TO SHCIL: Account opening form: * Board resolution. * Memorandum of association. * Authorized signatories (for corporate). * SEBI registration certificate clearing indicating that it is for stockbroker. * Closure letter addressed to old DP duly stamped and acknowledged by old DP. * Closure letter and shifting letter has to be on the letterhead of CM. * Closure letter should be duly stamped and acknowledged by old DP. * Shifting letter addressed to NSDL stating : CM name Old CM name Old CM BP ID

Old DP name New DP name. IF YOU ARE OPENING A FRESH POOL ACCOUNT: Account opening form * Board resolution. * Memorandum of association. * Authorized signatories (for corporate). * SEBI registration certificate clearly indicating that it is for stockbroker. * Letter from stock exchange stating CC CM ID. * In case of ISE mention on the letter: Subject: Allotment of CC CM ID. CUSTODIAL SERVICES FOR CM CUSTODIAL SERVICES FOR BASE CAPITAL/ADDITIONAL CAPITAL REQUIREMENTS * We accept deposits of base minimum capital (base capital) and additional base capital as stipulated by NSE for clearing members to be able to trade on its capital market segment.

The securities being deposited shall be subject to legal and beneficial ownership of : * TM clearing member / spouse in case of individuals. * Any of the partners/their spouses in case of partnership. * Any of the directors in case of corporate TM clearing member. * What qualifies as deposit? The following securities can be deposited: * Listed equity shares of approved companies subject to 15%. * Margin. * Equity shares of approved companies in DEMAT form subject to 15 % margin (Nifty Scrips) and 25% margin (30 other scrips pertaining to junior nifty group). * Listed units of mutual funds subject to 155 margins. * Unlisted units of mutual funds subject to 15% margin of the NAV of the units prevalent on the last day of the preceding month. * Listed PSU bonds subject to 15% margin. Other debt securities admitted for trading on wholesale debt market segment of NSE subject to 15% margin. * Listed GOI/treasury bills subject to 10% margin. * Units under units scheme 1964 of UTI to be valued at the lowest of the repurchase price prevalent in the preceding 12 months. * Deposit of fixed deposit receipts (FDRs) issued by approved banks. In case of FDRs, the members have to submit the following : * Original FDR issued by any approved bank and drawn and drawn on specified cities. * A letter from the bank in a specified format. * A letter from the member in a specified format. * SHCIL charges upfront. * National saving certificate and Kisan Vikas Patra issued by post office. * SGL securities Certificate of deposits (CDs) issued by banks/institution. * NSE members may also pledge dematerialized shares in favor of NSCCL for security base capital and additional base capital requirements. The DEMAT shares pledged by a member as additional base capital will be considered for the purpose of gross exposure computation. In case of DEMAT scrips, the following conditions apply : (1) The member has to open a separate beneficiary account for base capital and additional base capital : * In the name of partners / their spouse in case of partnership firms. * In the name of corporate / directors of the company in case of corporate clearing members. In the name of proprietor / spouse in case of proprietary concerns. (2) The securities to be pledged to be transferred to the account. Pledge instruction along with pledge deed in a specified format to be given to SHCIL. (3) After pledge is created in favor of NSCCL, valuation is given to NSCCL by SHCIL. (4) Closure of pledge takes place at the instruction of NSCCL. (5) Replacement / additional of securities also available. (7) NRI INTRODUCTION Over the years, SHCIL has grown to become a major player in the capital market. With a network of offices operating across the country with franchisees operating abroad, SHCIL provides depository participant and other services close to 0. million satisfied investors out of which over 6000 are NRI clientele. SHCIL has a fully fledged NRI cell operating specifically to cater needs pertaining to depository account opening and maintenance. NRI cell coordinates with prospective NRI customers, collects and assist in obtaining the relevant documents and ensures the depository account is opened hassle free. NRI cell collects physical certificates to be sent for DEMAT and ensure that the certificates are in order and can be sent for dematerialization under the existing guidelines issued by the depositories. Instruction for trade is accepted by fax on request by NRI cell to ensure timely settlement of trades.

In this case later on the client needs to regularize by sending the original trade delivery instruction. Any tariff and billing related query are addressed by NRI cell. In short NRI cell is a single point contact for any matter elating to NRI depository operations. OPEN ACCOUNT Before you open your account …. * Ascertain your NRI depository account status as per guidelines issued by RBI from time to time. * In case of joint account, status of the first holder is reckoned for all purposes. * If a scrip is held by three holders of whom the first is a NRI and the other two or residents, then the account falls under the NRI category. * Accounts have to be opened in the exact order in which the names appear in the certificate.

Holding pattern AB is not the same as BA. CHECK YOUR FORM AGAINST THESE DETAILS: * All columns are filled in. write NA wherever not applicable. * Specify status as Non Repatriable (NRO) or Repatriable (NRE). Status cannot be changed once account is opened. * Bank account details should be compulsorily provided along with 9 digit MICR code. * Ensure that the account status and the bank details are as below : (a) If the status is NRE, bank details can be ‘NRE’ or ‘NRO’. (b) If the status is NRO, bank details can be ‘NRO’ only. * Copy of RBI approval is not mandatory and the standing instruction for automatic credits may be marked as ‘Y’ without furnishing RBI approval.

However, the onus of reporting to RBI is on the client. * Proof of identity by way of copy of your passport and bank account attestation is compulsory. * Initial the agreement on the front side and sign in the order of of holders in the backside of the agreement. * Nomination. (a) Nominee may be any person other than the account holders. (b) Photograph of the nominee has to be affixed on the nomination form. (c) The nominee must sign across the photograph and in the space provided below. (d) If the nominee is a minor, the guardian shall sign at all places where the nominee is supposed to sign. (e) Photograph of the guardian also has to be affixed on the nomination form. YOUR ACCOUNT IS OPENED…

Once your account is opened, you will be allotted a client identity number. You will be sent an operating kit containing: * Details of your account as provided by you and as recorded by SHCIL. * Copy of the agreement entered into with SHCIL. * ‘Delivery instruction by client’ booklet allotted to your DEMAT account. This booklet helps you transfer shares from your account to broker account and other accounts. SWOT ANALYSIS STRENGTH 1. Wide coverage throughout the country. 2. Promoted by 7 financial institutions. 3. Largest account holders. 4. Largest custodian. 5. Catering to Indians as well as NRIs and FIIs. 6. One stop shop for all financial solutions. 7. Advanced system network. WEAKNESS 1. Lack of aggressive marketing. 2. Improper billings. 3. Expensive. (Because separate account has to be opened according to holdings). 4. Less investment in advertising. | OPPURTUNITIES 1. E – Broking. 2. Acquisition of smaller DPs. 3. Collaboration with banks. 4. New products. 5. To increase business (by opening new branches at rural-urban areas. | THREAT 1. Promoters have become competitors with strong brand equity. 2. Increased cost as perceived by customers. 3. Fluctuating market conditions affect the business. | STRENGTHS: 1. LARGEST DEPOSITPORY PARTICIPANT : SHCIL is at the No. 1 position as depositor participant in all over India.

Being a premier custodian SHCIL is currently holding more than 20 million certificates in etude as the largest custodian. SHCIL accounts for more than 50% of institutional business in the country. 2. BACK OFFICE SERVER : For perfection in work SHCIL has back office server facility where all the branches of SHCIL meet their necessary requirements before any information takes place with the NSDL. 3. EXPERIENCE: Stock holding is the oldest organization in custodian business all over India and it has more than 12 years of experience in the field. SHCIL has excellent management and technocrat’s team to handle workloads and provides the best of services to its customers. 4. PROMOTED BY FINANCIAL INSTITUTIONS :

SHCIL is promoted by all the major financial institutions in India, i. e. * Industrial development bank of India. * Life insurance Corporation of India. * Oriental insurance co. ltd. * Industrial credit and Investment Corporation of India. * New India insurance corporation ltd. * National insurance corporation ltd. * United India insurance co. ltd. It has professionals on its board to look after the business and meet its current and future requirements in the market. NEW PRODUCTS: SHCIL has offered some new products in the market like E-stamping to meet the customer requirement as well as established benchmark. WEAKNESS: 1. SOME BRANCHES ARE NOT CONNECTED THROUGH VSAT:

SHCIL is the largest branch network depository participant in the custodian market but till now some few of the branches are not yet connected through the VSAT. 2. LESS ADVERTISEMENT SPILLS : SHCIL has less advertisement spill compared to its main competitor like Kotak securities, HDFC, IDBI bank, and ICICI bank. These are also producing the facilities of banking services and other related services to the customers. OPPORTUNITIES: 1. LARGE RURAL/SEMI-URBAN ARES ARE STILL UNEXPLORED : SHCIL has a growing structure of its branch network but still our rural and urban areas are not covered in the process whereby the common man participates in the growth of the economy.

Therefore it has become necessary to give attention to our rural and semi-urban sectors immediately. 2. SELL – N- CASH: Sell- n- cash is totally a new concept of SHCIL where an investor can present his share to knell in the market and can take payment within 48 hours without delays. 3. MUTUAL FUND MARKETING : Marketing and distribution of mutual fund is providing the facility to the customer who do have the time and the expertise and who are averse to risk. 4. SGL ACCOUNT: SHCIL is the first corporation, which got he non –banking license to dematerialize the government securities. This enables the institutional investors to properly use their fund to derive the extra return from their investment. 5. INSURANCE MARKETING :

Marketing of insurance services recently started by SHCIL is also a great opportunity available for its growth. This field can enhance great opportunities and can alleviate their position in the market. THREATS 1. CHARGES ARE HIGHER : Indian customers have less money at their disposal. Since SHCIL is the No. 1 in the custodial sector in the market and for providing the best services, it has higher charges detrimental for small investors. 2. TIE UP WITH EXTERNAL AGENCY : Now day’s tie-ups, M;amp;A are a regular phenomenon in the market to beat the competition and create a place for itself. The merger and tie-ups of financial corporations poses a bigger threat to SHCIL. PART 3 NUMBER OF PEOPLE INVESTING IN STOCK MARKET

According to the findings 85% of people invest in the stock market, while 15% don’t invest in the stock market or invest elsewhere. YES| NO| 85%| 15%| After analyzing the data it was concluded that 85% of the people invest in the stock market through different DPs while 15% of them don’t invest in the stock market because they consider it more risky or they have little idea about stock market. IMPORTANT FEATURES WHILE MAKING INVESTMENTS The findings say that 58% think that return is the most important feature while making investments; 38% think safety as important; 24% give priority to liquidity and 19% think tax benefit as important. SAFETY| RETURN| LIQUIDITY| TAX BENEFIT| 38%| 58%| 34%| 19%|

Return on investment is the prime motive behind investments. Investors also expect safety. Liquidity needs of the investors cannot be neglected as the demand for cash forms an important objective of investment. Lastly, it was observed that tax benefit also accounts for making various investment decisions. MODES OF INVESTMENT The given findings say that 59% of the people invest through banks; 66% through equity; 7% through bonds and 61% through mutual fund. BANK| EQUITY| BONDS| MUTUAL FUND| 59| 66| 7| 61| After the analysis we can say that most of the people invest in equity as it provides growth opportunity. Almost the same amount is invested in mutual funds.

A little less amount is invested in bank as it provides safety to cautious investors but little growth and only a few people invest in bonds. DEMAT ACCOUNT WITH DIFFERENT DP 24% of people have their account with SHCIL, 12% have their Demat account with Karvy , 9% with IDBI, 10% with ICICI and 45% with others. SHCIL| KARVY| IDBI| ICICI| OTHERS| 24| 12| 9| 10| 45| Others include Eashika Stock Market, SPLF, Siddhi Shares, Kotak Securities, Religare, Anand Rathi, India Bulls and Unicon Solutions. These figures are on the basis of survey done in lucknow only. AWARENESS ABOUT SHCIL AS LARGEST DP According to the survey 35% of the people know that SHCIL is the largest DP whereas 65% of them are unaware of the fact. YES| NO| 35%| 65%|

SHCIL’s still lags behind in popularity in spite of the fact of being the largest Depository Participant. This shows that it needs to spend heavily on advertisements to compete in the market as well as expand its business. PRODUCTS AND SERVICES OF SHCIL According to the findings first ranking is given to Demat, second to mutual fund, third to broking and fourth to insurance. No one knows about e-stamping as one of the services offered by SHCIL. DEMAT| MUTUAL FUND| BROKING| INSURANCE| E-STAMPING| 38%| 25%| 32%| 5%| -| After going through the data it is seen that Demat facility of SHCIL is the most preferred by people, mutual fund at the second in preference; then comes broking and the least preferred is insurance.

BROKING FACILITY OF SHCIL IS BETTER THAN COMPETITORS Considering the data collected it was found that 41% of people think that broking facility of SHCIL is better than its competitors while 59% think that it’s the vice-versa. YES| NO| 41%| 59%| According to data collected 59% of people think that the broking facility of SHCIL is not better than its competitors because of a high broking rate. MUTUAL FUND THROUGH SHCIL IS BENEFICIAL FOR INVESTORS Through the data collected and after analyzing the questionnaires filled by people it was found that 56% of people think that investment in mutual fund through SHCIL is beneficial for them while 44% think that investment in

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