SUMMER

TRAINING PROJECT
ON

TATA SECURITIES
PRIVATE LIMITED

SUBMITTED BY :-
ANURAG DAS
MBA E BUSINESS 2009-2011
 LUCKNOW UNIVERSITY DEPARTMENT OF BUSINESS
ADMINISTRATION

PREFACE

A futures contract is a forward contract, which is traded on an

Exchange. NSE commenced trading in index futures on June 12, 2000.
The index futures contracts are based on the popular market
benchmark S&P CNX Nifty index. (Selection criteria for indices)

NSE defines the characteristics of the futures contract such as the

underlying index, market lot, and the maturity date of the contract. The
futures contracts are available for trading jfrom introduction to the
expiry date.

An option gives a person the right but not the obligation to buy or sell
something. An option is a contract between two parties wherein the
buyer receives a privilege for which he pays a fee (premium) and the
seller accepts an obligation for which he receives a fee. The premium is
the price negotiated and set when the option is bought or sold. A person
who buys an option is said to be long in the option. A person who sells
(or writes) an option is said to be short in the option.

NSE introduced trading in index options on June 4, 2001. The options

contracts are European style and cash settled and are based on the
popular market benchmark S&P CNX Nifty index. (Selection criteria for
indices)

TATA securities private Ltd. Is one of the fastest growing company

which provide customers DP and Trading accounts for trading in equity
as well as derivative market.
 ACKNOWLEDGEMENT

I express my sincere thanks to Ms. Afsa Siddqui training head of TATA securities
private ltd. for enabling me to successfully complete this project.

I take this opportunity to place on record my sincere thanks to my other seniors

Ashwani Kumar and Ankur Srivastav in TATA securities private ltd.
 THE INDIAN CAPITAL MARKET

The function of the financial market is to facilitate the transfer of funds from surplus
sectors (lenders) to deficit sectors (borrowers). Normally, households have investible funds
or savings, which they lend to borrowers in the corporate and public sectors whose
requirement of funds far exceeds their savings. A financial market consists of investors or
buyers of securities, borrowers or sellers of securities, intermediaries and regulatory
bodies. Financial market does not refer to a physical location. Formal trading rules,
relationships and communication networks for originating and trading financial securities
link the participants in the market.

The capital market

The capital market consists of primary and secondary markets. The primary market deals
with the issue of new instruments by the corporate sector such as equity shares, preference
shares and debt instruments. Central and State governments, various public sector
industrial units (PSUs), statutory and other authorities such as state electricity boards and
port trusts also issue bonds/debt instruments.

The primary market:

The primary market in which public issue of securities is made through a prospectus is a
retail market and there is no physical location. Offer for subscription to securities is made
to investing community. The secondary market or stock exchange is a market for trading
and settlement of securities that have already been issued. The investors holding securities
sell securities through registered brokers/sub-brokers of the stock exchange. Investors who
are
desirous of buying securities purchase securities through registered brokers/sub-brokers of
the stock exchange. It may have a physical location like a stock exchange or a trading
floor. Since 1995, trading in securities is screen-based and Internet-based trading has also
made an appearance in India.

The secondary market:

The secondary market consists of 23 stock exchanges including the National Stock
Exchange, Over-the-Counter Exchange of India (OTCEI) and Inter Connected Stock
Exchange of India Ltd. The secondary market provides a trading place for the securities
already issued, to be bought and sold. It also provides liquidity to the initial buyers in the
primary market to reoffer the securities to any interested buyer at any price, if mutually
accepted. An active secondary market actually promotes the growth of the primary market
and capital formation because investors in the primary market are assured of a continuous
market and they can liquidate their investments.

Capital Market Participants:

There are several major players in the primary market. These include the merchant
bankers, mutual funds, financial institutions, foreign institutional investors (FIIs) and
individual investors. In the secondary market, there are the stock brokers (who are
members of the stock exchanges), the mutual funds, financial institutions, foreign
institutional investors (FIIs), and individual investors. Registrars and Transfer Agents,
Custodians and Depositories are capital market intermediaries that provide important
infrastructure services for both primary and secondary markets.

The main two stock exchanges of India are:-

BSE

NSE
Both the stock exchanges provide the facility to trade in future and options. Although the
basic fundamentals of future & options for both the stock exchanges are same few features
are change in this.

Options in NSE stock exchange:-

An option gives a person the right but not the obligation to buy or sell something. An
option is a contract between two parties wherein the buyer receives a privilege for which
he pays a fee (premium) and the seller accepts an obligation for which he receives a fee.
The premium is the price negotiated and set when the option is bought or sold. A person
who buys an option is said to be long in the option. A person who sells (or writes) an
option is said to be short in the option.

NSE introduced trading in index options on June 4, 2001. The options contracts are
European style and cash settled and are based on the popular market benchmark S&P CNX
Nifty index. (Selection criteria for indices)

• Contract Specifications
• Trading Parameters

Contract Specifications

Security descriptor
The security descriptor for the S&P CNX Nifty options contracts is:

Market type : N
Instrument Type : OPTIDX
Underlying : NIFTY
Expiry date : Date of contract expiry
Option Type : CE/ PE
Strike Price: Strike price for the contract

Instrument type represents the instrument i.e. Options on Index.

Underlying symbol denotes the underlying index, which is S&P CNX Nifty
Expiry date identifies the date of expiry of the contract
Option type identifies whether it is a call or a put option., CE - Call European, PE - Put
European.

Underlying Instrument
The underlying index is S&P CNX NIFTY.

Trading cycle

S&P CNX Nifty options contracts have 3 consecutive monthly contracts, additionally 3
quarterly months of the cycle March / June / September / December and 5 following semi-
annual months of the cycle June / December would be available, so that at any point in
time there would be options contracts with atleast 3 year tenure available. On expiry of the
near month contract, new contracts (monthly/quarterly/ half yearly contracts as applicable)
are introduced at new strike prices for both call and put options, on the trading day
following the expiry of the near month contract.

Expiry day
S&P CNX Nifty options contracts expire on the last Thursday of the expiry month. If the
last Thursday is a trading holiday, the contracts expire on the previous trading day.

Strike Price Intervals

The number of contracts provided in options on index is based on the range in previous
day’s closing value of the underlying index and applicable as per the following table:

Strike Scheme of Strike to

Index Level
Interval be introduced
upto 2000 50 4-1-4
>2001 upto 4000 100 6-1-6
>4001 upto 6000 100 6-1-6
>6000 100 7-1-7

The above strike parameters scheme shall be applicable for all Long terms contracts also.
Top

Trading Parameters

Contract size
The value of the option contracts on Nifty may not be less than Rs. 2 lakhs at the time of
introduction. The permitted lot size for futures contracts & options contracts shall be the
same for a given underlying or such lot size as may be stipulated by the Exchange from
time to time.

Price bands

Quantity freeze
Orders which may come to the exchange as quantity freeze shall be such that have a
quantity of more than 15000. In respect of orders which have come under quantity freeze,
members would be required to confirm to the Exchange that there is no inadvertent error in
the order entry and that the order is genuine. On such confirmation, the Exchange may
approve such order. However, in exceptional cases, the Exchange may, at its discretion,
not allow the orders that have come under quantity freeze for execution for any reason
whatsoever including non-availability of turnover / exposure limit. In all other cases,
quantity freeze orders shall be cancelled by the Exchange.

Options in NSE stock exchange :-

An option gives a person the right but not the obligation to buy or sell something. An
option is a contract between two parties wherein the buyer receives a privilege for which
he pays a fee (premium) and the seller accepts an obligation for which he receives a fee.
The premium is the price negotiated and set when the option is bought or sold. A person
who buys an option is said to be long in the option. A person who sells (or writes) an
option is said to be short in the option.

NSE introduced trading in index options on June 4, 2001. The options contracts are
European style and cash settled and are based on the popular market benchmark S&P CNX
Nifty index. (Selection criteria for indices)
 • Contract Specifications
• Trading Parameters

Contract Specifications

Security descriptor
The security descriptor for the S&P CNX Nifty options contracts is:

Market type : N
Instrument Type : OPTIDX
Underlying : NIFTY
Expiry date : Date of contract expiry
Option Type : CE/ PE
Strike Price: Strike price for the contract

Instrument type represents the instrument i.e. Options on Index.

Underlying symbol denotes the underlying index, which is S&P CNX Nifty
Expiry date identifies the date of expiry of the contract
Option type identifies whether it is a call or a put option., CE - Call European, PE - Put
European.

Underlying Instrument
The underlying index is S&P CNX NIFTY.

Trading cycle
S&P CNX Nifty options contracts have 3 consecutive monthly contracts, additionally 3
quarterly months of the cycle March / June / September / December and 5 following semi-
annual months of the cycle June / December would be available, so that at any point in
time there would be options contracts with atleast 3 year tenure available. On expiry of the
near month contract, new contracts (monthly/quarterly/ half yearly contracts as applicable)
are introduced at new strike prices for both call and put options, on the trading day
following the expiry of the near month contract.

Expiry day
S&P CNX Nifty options contracts expire on the last Thursday of the expiry month. If the
last Thursday is a trading holiday, the contracts expire on the previous trading day.

Strike Price Intervals

The number of contracts provided in options on index is based on the range in previous
day’s closing value of the underlying index and applicable as per the following table:

Strike Scheme of Strike to

Index Level
Interval be introduced
upto 2000 50 4-1-4
>2001 upto 4000 100 6-1-6
>4001 upto 6000 100 6-1-6
>6000 100 7-1-7

The above strike parameters scheme shall be applicable for all Long terms contracts also.

Top

Trading Parameters

Contract size
The value of the option contracts on Nifty may not be less than Rs. 2 lakhs at the time of
introduction. The permitted lot size for futures contracts & options contracts shall be the
same for a given underlying or such lot size as may be stipulated by the Exchange from
time to time.

Rate of interest may be the relevant MIBOR rate or such other rate as may be specified.

The base price of the contracts on subsequent trading days, will be the daily close price of
the options contracts. The closing price shall be calculated as follows:

• If the contract is traded in the last half an hour, the closing price shall be the last half
an hour weighted average price.

• If the contract is not traded in the last half an hour, but traded during any time of the
day, then the closing price will be the last traded price (LTP) of the contract.

If the contract is not traded for the day, the base price of the contract for the next trading
day shall be the theoretical price of the options contract arrived at based on Black-Scholes
model of calculation of options premiums.
Price bands

Quantity freeze
Orders which may come to the exchange as quantity freeze shall be such that have a
quantity of more than 15000. In respect of orders which have come under quantity freeze,
members would be required to confirm to the Exchange that there is no inadvertent error in
the order entry and that the order is genuine. On such confirmation, the Exchange may
approve such order. However, in exceptional cases, the Exchange may, at its discretion,
not allow the orders that have come under quantity freeze for execution for any reason
whatsoever including non-availability of turnover / exposure limit. In all other cases,
quantity freeze orders shall be cancelled by the Exchange.

Options in BSE stock exchange :-

Sensex Futures

A Futures Contract is a standardized contract to buy or sell a specific security at a future

date at an agreed price. Thus, a SENSEX® future is a future on the index i.e. the
underlying is the index itself. There is no underlying stock which is to be delivered to
fulfill the obligations as SENSEX® futures is cash settled. As with other derivatives, the
contract derives its value from the underlying index.

The main feature that differentiates the SENSEX® from other indices in the country is that
it uses the "Free Float Market Capitalisation" methodology.This means that only such
shares that are available for investors to trade are considered for reckoning market
capitalisation.

The following shares that are not available for trading on a day-to-day basis are excluded
from the calculation for market capitalisation:

• Holdings of founders/directors/ acquirers which have a control element and persons/

bodies with "Controlling Interest"
• Government holding as promoter/acquirer
• Holdings through the FDI Route / strategic stakes
• Equity held by associate/group companies (cross-holdings)
• Equity held by Employee Welfare Trusts
• Locked-in shares
An index based on free float is more accurate and indicative of the actual trend and also
removes the sector bias that may creep in on account of the "full market capitalization"
model.

Options in BSE stock exchange :-

Index Options

Options contract give its holder the right, but not the obligation, to buy or sell something
on or before a specified date at a stated price. Generally, index options are European style,
being those option contracts that can be exercised only on the expiration date. The
underlying indices for index options are the various eligible indices as permitted by SEBI.

Index Options Products

Sr. Contract
Product Product Code
No. Multiplier

1 BSE 30 SENSEX OPTIONS BSXOPT 15

2 BSE SENSEX MINI OPTIONS MSXOPT 5
3 BSE TECK OPTIONS TECKOPT 70
4 BSE BANKEX OPTIONS BNKXOPT 20
5 BSE OIL & GAS OPTIONS OGXOPT 20

Long Dated Options (LDO)

SEBI , vide its circular SEBI/DNPD/Cir-34/2008 dated January 11, 2008, had announced
the introduction of Index Options with a longer tenure. BSE introduced 'Long Dated
Options' on its flagship index - Sensex® -on February 29, 2008, whereby the Members can
trade in Sensex (in the normal lot of 15 only and not 'mini' Sensex) Options contracts with
an expiry of up to 3 years.

Features of Long Dated Options (LDO)

• Later expiration dates offer an opportunity for long term investors to take a view on
prolonged price changes without requiring to use a combination of short term option
contracts.
 • Premia for long-term options tend to be higher than that of short term options
because the increased expiration period means increased possibility of larger
movement in the price of the underlying.
• Long-term high net worth investors and institutions need not be burdened with the
cost of rolling over the options purchased to protect their portfolios from downside
risks.
• LDOs offer a good alternative to a long-term trader to gain exposure to a prolonged
period in a given security without having to roll several short term contracts

Following new options series are available for the Sensex (normal lot of 15) Options
contracts are:

• Along with the existing 3 monthly rolling contracts, three additional 3 fixed
quarterly months of the cycle Mar/Jun/Sep/Dec would be available.
• Further, 5 additional semi-annual months of the cycle Jun/Dec would be available,
so that at any point in time there would be options contract with up to 3 years tenure
available.

All risk management measures and contract specifications (except for the longer expiries)
for normal monthly contracts would also apply to the Long Dated Options contracts.

TATA SECURITIES PRIVATE LTD.

INTRODUCTION :-

Tata Securities Ltd. (TSL), is a wholly owned subsidiary of Tata Capital.

Tata Securities holds membership on the Bombay Stock Exchange (BSE)
and the National Stock Exchange (NSE). TSL offers, both institutional
and retail clients, quality products and services like Equity Trading, IPOs
and Mutual Funds.

Tata Capital Limited is a subsidiary of Tata Sons Limited. The Company is registered with
the Reserve Bank of India as a Systemically Important Non Deposit Accepting Non
Banking Financial Company (NBFC) and offers fund and fee-based financial services to
its customers.

A trusted and customer-centric, one-stop financial services provider, Tata Capital Limited
caters to the diverse needs of retail, corporate and institutional customers, directly or
indirectly, through its subsidiaries across various areas of business namely the Commercial
Finance, Investment Banking, Private Equity, Infrastructure Finance, Securities, Wealth
Management, Consumer Loans, Cards and Travel Related Services.
Tata Capital is headquartered in Mumbai and has a wide network of over 100 branches
spanning all critical markets in India.

ABOUT US:-

The Tatas are amongst the most respected business houses in the world. Tata Capital aims
to bring the trust and expertise of the Tatas to an economically and socially relevant sector
like financial services.

The essence of brand Tata Capital is encapsulated in our brand proposition – ‘We only do
what’s right for you'. The proposition reflects our strong resolve to deliver financial
solutions that are ‘right’ for our customers and the society at large.

Tata Capital seeks to build strong relationships with its customers and deliver superior and
consistent customer experience across all products and touch-points.

At Tata Capital, our wide product suite comprises of the following:

Commercial Finance

With its wide array of products and customized service, our commercial finance business,
helps small, medium and large corporates grow their business. Our team of handpicked
professionals offers in-depth expertise to help customers keep pace with the changing
marketplace and offer them appropriate solutions to meet their ever-growing financial
needs. Our range of offerings includes Term Loans, Working Capital Loans, Channel
Finance, Equipment Finance, Lease Rental Discounting, Bill Discounting Letter of Credit*
and Bank Guarantee*

* Offered through our associate banks.

Investment Banking

Tata Capital Investment Banking services help Institutions and Corporates manage and
grow their business via high quality financial advisory services and capital market
solutions. Our team of dedicated and experienced professionals understands the needs of
its customers and offers them cost-effective solutions from a bouquet of services
comprising M&A Advisory, PE Syndication and Debt and Equity Capital Market services*
* Brought to you by Tata Capital Markets Limited (TCML), a wholly-owned subsidiary of
Tata Capital Limited. TCML holds a Category I Merchant Banking license from the
Securities and Exchange Board of India.

Private Equity

Tata Capital’s Private Equity business identifies, funds, nurtures and profitably exits
companies, with significant growth potential. Our team looks to create value in these
companies, beyond its role as a financial investor, by supporting them in areas like
strategy, business development, manufacturing, marketing, technology, treasury and
facilitating overall improvement and growth of the company’s operations. To enable this,
the team leverages the vast business management experience of the Tatas across different
sectors of the economy.

Infrastructure Finance

Our Infrastructure Finance business caters to the specialized needs of the infrastructure
sector. With an array of attractive finance options to suit the varying needs of its
customers, both large and small and backed by a reputation of reliability and trust, it brings
a promise of quality and world class service. Our range of offerings includes Equipment
Finance, Project Finance, Equipment Rentals, Working Capital Loans, Bill Discounting/
Factoring, Refinance, Top Up Loans and Loan Syndication

Securities

Tata Securities Limited*, a wholly owned subsidiary of Tata Capital Limited, offers, both
institutional and retail customers, quality products and services like equity trading and
research. With a strong research and execution team, and uncompromising ethical
standards, Tata Securities strives to work in the interest of its customers and has
successfully built a franchise of strong relations.

* Tata Securities Limited Registered Office: Army & Navy Building, 2nd Floor, 148, M. G. Road, Fort, Mumbai – 400001,
Telephone: 91 22 67524000, Fax: 91 22 66378379. Tata Securities Limited. Member Bombay Stock Exchange Limited. SEBI
Registration Number. BSE Cash Segment: INB010664150. BSE Derivative Segment: INF011207954. Depository Participant
of CSDL, SEBI Registration Number: IN-DP-CSDL-450-2 008. Member National Stock Exchange of India Limited, SEBI
Registration Number: INB/F231288730. Depository Participant of NSDL, SEBI Registration Number: IN-DP-NSDL-298-
2008. ARN 0021

Wealth Management
Whether it is selecting the right investment opportunity, growing a financial portfolio or
building a retirement nest, our Wealth Management team guides our customers at every
step. Backed with strong research capabilities and a deep understanding of our customers,
our team helps recommend and execute a customized financial strategy that is just right for
our customers. The spectrum of offerings includes, Financial Planning Services,
Retirement Planning Services, Third party investment products like Portfolio Management
Services, Private Equity/Venture Capital Funds, Structured Products, Mutual Funds#,
Fixed Deposits and Bonds.

# The participation by a company’s customer in mutual fund products is purely on a voluntary basis

Consumer Loans
Our wide range of consumer loans helps ensure that the dreams our customers want to
realize today, are not put off for tomorrow. With a deep understanding of our customers’
needs we are able to guide them at every step and offer them specific financial solutions.
Our Consumer Loans include, Home Loans*, Auto Loans, Personal Loans, Business
Loans, Education Loans, Loans against Property, Loans against Shares#, Loans against
Gold#.

* Brought to you by Tata Capital Housing Finance Limited, a wholly-owned subsidiary of Tata Capital Limited.

# Currently available in select cities only.

Tata Cards
The Tata Card* combines the convenience of a powerful credit card with a rewarding
membership to the Empower program. The credit card allows customers to earn points and
the Empower program, India's first multi-brand loyalty program, offers them the advantage
of redeeming these points across several loyalty programs.

* Tata Card is the White Label Card issued, established and operated by the State Bank of India and Tata Capital is marketing
and distributing this card

Travel Related Services

Our travel related services* helps cater to a range of travel needs - from planning
customized holiday packages for individual customers to group travel arrangements for
corporate customers. Our focus on service quality and transparency is supplemented by our
commitment to optimize the cost, comfort and convenience for all our customers. Our
wide range of services includes Airline ticketing, Visa & passport facilitation, Hotel
accommodation and Cars-hire & surface transport

* Brought to you by TC Travel and Services Limited, a wholly-owned subsidiary of Tata Capital Limited.

CORE SERVICES

ACCOUNT OPENING
• DEMAT ACCOUNT
• TRADING ACCOUNT
• SHARE TRADING

We provide both accounts in combined offer. Both the

accounts come with a host of options that best suit
customers trading needs. Which are as following :-
Standard Account
1. X perience
2. X change

Premium Account
ApeX 1000
ApeX 2500
ApeX 5000
Xcel
Xcel plus
xclusive

ACCOUNT OPENING

1. The account opening form is issued after receiving the request mail from branches /sub brokers.
2. Account opening forms are generally given to walk-in clients who have their references working with
our concern.
 PROCESS OF BO ACCOUNT OPENING IS AS FOLLOWS

Collection of Documents

Documents collected at branches and H.O. (documents of H.O.and HNI clients):

1. Account opening forms
2. Modification forms
3. DIS slips/requisitions
4. DRF/Remat forms
5. Pledged/Unpledged forms
6. Account closing forms
7. POA

LIST DOCUMENTS AND VALIDATION OF BO ACCOUNT OPENING.

Sl Criterion Acceptable Validation
no Documents For DP

1 PAN
C
A
R
D
1. PAN CARD *PAN no and Name is verified by NSDL
Photocopy site

*Photo is Verified by cross signed

photo of client in the form

*Verified with original stamp is affixed

and self attested by Client

2 POI

2. Voter ID Card *Photo is Verified by signed photo

of client in the form

*Name is matched with that in KYC

* Verified with original stamp is affixed

and self attested by Client
* Only required if photograph of client
on PAN is not matching with the
Photograph on KYC
3. Pass-port *Photo is Verified by signed photo
Photocopy of client in the form

*Validity period is checked.

*Name is matched with that in KYC

*Verified with original and self attested

4. Driving License *Photo is Verified by signed photo

Photocopy of client in the form

*Validity period is checked.

Name is matched with that in KYC

*Verified with original and self attested

5. Identity *Photo is Verified by signed photo

card/document with of client in the form
applicant’s Photo,
issued by
*Name is matched with that in KYC
a) Central/State
Government and its
 Departments, *Verified with original and self attested

b)
Statutory/Regulator
y Authorities,

c) Public Sector
Undertakings,

d) Scheduled
Commercial Banks,

e) Public Financial
Institutions,

f) Colleges affiliated
to Universities this can be treated as valid only till
the time the applicant is a student),

3 POA

1. Bank Pass Book *Address should match with that

Photocopy filled in the form

*Original(It should be on the

printed stationary of the bank or
water print with bank stamp and
bank person sign with designation)

*Name is matched with that in KYC

*Verified with original and self

attested

2. Voter ID Card *Address should match with that

filled in the form

*Name is matched with that in KYC

*Verified with original and self

attested

3. Pass Port *Address should match with that

Photocopy filled in the form
 *During Validity period

*Name is matched with that in KYC

*Verified with original and self

attested

4. Electricity Bill *Address should match with that filled

in the form

*Bill not more than two months old.

*Name is matched with that in KYC

*Verified with original and self attested

5. Telephone Bill *Address should match with that filled

in the form

*Not more than two monts old.

*It should be Land-line phone

*Name is matched with that in KYC

*Verified with original and self attested

6. Lease Agreement *Address should match with that filled

in the form

*Validity period is matched.

*Photocopy should be notarized.

*Name is matched with that in KYC

*Verified with original and self attested

7.Insurance *Address should match with that filled

Policy Certificate in the form

Photocopy
*Premium Certificate not valid.

*Name is matched with that in KYC

 *Not more than 1 year old.

*Verified with original and self attested

8. Ration Card *Address should match with that

filled

in the form

*Name is matched with that in KYC

*Verified with original and self

attested

9. Identity *Address should match with that

card/document with filled
address, issued by
in the form
a) Central/State
*Name is matched with that in KYC
Government and its
Departments, *Verified with original and self
attested
b)
Statutory/Regulator
y Authorities,

c) Public Sector
Undertakings,

d) Scheduled
Commercial Banks,

e) Public Financial
Institutions,

f) Colleges affiliated
to Universities
 (this can be treated as valid only
till the time the applicant is a
student)

4 Bank-Proof

1. Bank-Pass Book *Bank details should match with

photocopy that filled in the form

*Name is matched with that in KYC

*Verified with original and self

attested

2. Bank Statement *Original(It should be on the printed

stationary of the bank or water print

with bank stamp and bank manager

sign with designation)

*Not more than three monts old.

*Bank details should match with that

filled in the form

*Name is matched with that in KYC

*Verified with original and self attested

3.Cancel *Bank details should match with that

Cheque filled in the form

*Cheque should have Client sign.

*Name is matched with that in KYC.

*Verified with original and self attested

6 Sign Proof

1. Cheque *Client sign in the form should

match with the Cheque

Cheque should pass

* Verified with original stamp is

affixed and self attested by Client

2. Banker's *Client sign in the form should match

Verification
with the Cheque

*It should be according to the prescribed

format. Annexure attached.

*Schedule commercial banks only.

* Verified with original stamp is affixed and self attested

by Client
* cheque is given by client for opening

For opening Trading account

3. PAN Card *Client sign in the form should

Photocopy match with the Cheque

*Should be clear and eligible copy.

*Name and PAN no is matched with

that in KYC

*Verified with original and self attested

4. Pass-Port *Client sign in the form should

Photocopy match with Passport Photocopy

*Should be clear and eligible copy.

*Name matched with that in KYC.

*Verified with original and self attested

7 Agreement
s
 1. DP *Stamp not more than 6 months old

*It should have sign of client and

witness signature with name,

address and date.

*It should have client sign on the

Marked place.

2. Tariff Chart *It should have sign of client and

witness signature with name,
address and date.

3.KYC *KYC should be properly filled with

client sign.

*Client sign should match with

signature proof.

8 Email Id 1. Required for DP *It should not bounce back.

9 Vernacular

*Client sign required

*According to prescribed format

(available on netshare branch

download)

*Broker Sign required.

Filling in of details

Signing of Tariff sheet

Signing of Nomination Declaration
Signing of agreement duly witnessed
Details to be filled by client for opening an account with us:

• HOLDER’S DETAILS
1. Name
2. Name of Father/Husband
3. Permanent Address
4. Telephone No. /Mobile No.
5. Email Id
6. Occupation Detail
7. SMS Details

• FINANCIAL DETAILS
1. PAN Number of the Holders.

• ADDITIONAL FINANCIAL DETAILS

1. Financial Status (Annual Income)
2. Nature of Business

• BANK DETAILS
1. Branch Name
2. Branch Address
3. Account Number
4. Account Type
5. 9 Digit MICR Code No.

• DECLARATION OF NOMINATION
6. I/We do not wish to make a Nomination
7. I/We wish to make a Nomination.
• Name of Nominee
• Relationship with the applicant (If any)
• Address of Nominee
 • Signature of Nominee
• Two witness with Name Address and Signature.

Receiving of account opening forms

1. The account opening forms are received from the various branches either through
courier or by hand.
2. A detailed record is maintained with datas containing the receiving date, branch name
and form number.
3. All the forms are stamped with the time and date stamp.
4. The account opening forms are send to the HO.

Punching of account opening forms

Branch/ Service Centre captures the details of the client that is electronically uploaded in
our back office software
1. At HO on physical receipt of form Web Punching is checked in Dpora,
for correctness of data captured.
2. Now the forms and documents attached are physically checked, to
trace out any deviation. Checker’s name and deviations is written on
the front page.
CHECKLIST FOR DP ACCOUNT

SL PARTICULARS Y N
N
O
1 Account opening forms duly signed by the all
holders
2 POI AND POA
3 Cross Signed photographs
4 Current / savings / overdraft a/c
5 Depository agreement duly signed by the holders
6 Tariff sheet should be signed
7 Power of attorney should be duly filled by the
holders
8 Pan verification should do by Online pan
verification facility provided by NSDL through
which we verify 5name at a time.
9 In-person verification stamp should be there

• SINGLE NAME

1 Bank-proof with single name required

• SOLE PROPRIETORSHIP

1 Proprietor pan card photocopy

2 POI and POA of the proprietor
3 Sole proprietorship stamp affixed wherever the
proprietor signs
4 Annexure 2 duly filled and signed by the
proprietor
5 DP is opened in name of the individual
6 The proprietor can’t have joint holder and a
nominee

• NRI

1 NRI PAN CARD photocopy

2 Copy of RBI approval letter
3 Indian & foreign address of client.
4 Valid passport copy of client
5 PIS permission
6 Valid bank proof

There are two kinds of NRI account –

• Repatriable: one whose money can be transferred from indian
account to foreign account
• Non- repatriable: one whose money can’t be transferred from
indian account to foreign account

• HUF

1 HUF pan card photocopy

2 Karta id-proof
3 HUF stamp affixed wherever the karta signs on
the behalf of HUF
4 Annexure 5 duly filled and signed by the karta
5 HUF can’t have joint holder and a nominee
6 HUF bank proof

• PARTNERSHIP

1 Copy of annual balance sheet for the last two

financial years
(copies of annual balance sheet to be submitted
 every year)
1 Copy of annual balance sheet for the last two
financial years
(copies of annual balance sheet to be submitted
every year)
2 Holding of partners in partnership
3 Certified true copy of the partnership deed
4 Authority letter by all the partners in favor
5 A passport size photo of the managing partner
signed across the face
6 POI of all the partners
7 Copy of PAN NO of the partnership firm
8 Proof of the demat account , ANNEXURE 1 is to
be signed
9 Bank proof of partnership firm
10 POA of all partners

• CORPORATE

1 Copies of balance-sheet for the last two

financial years
2 Copy of latest share-holding pattern including
list of all those holding more than 5% in the
share capital of the company, duly certified by
the Company Secretary / whole-time director /
managing director.
( copy of updated shareholding pattern to be
submitted every year)
3 Memorandum and articles of Association of the
Company (duly certified)
4 Certified true copy of a resolution passed by the
Board of Directors, naming the authorized
officials to sign the Member Constituent
agreement as per Annexure- 4
5 Photographs of whole time directors, individuals
promoters holding 5% or more, either directly
or indirectly, in the shareholding of the
Company and of persons authorized to deal in
securities.
6 A declaration on the company’s letterhead as
per Annexure- 5
7 Copy of PAN NO. / Form No 60 of the company
(PAN NO- is compulsory for trading in futures
and options)
8 Copy of form 18 (address proof)
9 POI of all the directors
10 DP proof of the Company
11 Bank proof of the company
12 Whether company stamp is affixed wherever
Directors signs on behalf of the company
13 List of Directors ; Form 32 is required in case
Directors name is not present in the M.O.A
14 DP Board of Resolution (page 25), on company
letter head
15 DP introduction required (page 19), to be done
either by existing client (his name, sign and
client id) or bank

• TRUST

Copy of registered Principal Trust Deed

(including registration certificate )
 Copy of Resolution to open trading, de-mat,
Saving account
Copy of 3 yrs IT returns
Copy of resolution authorizing any one / more
than one trustees to operate the account
Copy of PAN Card of the Trust
POI AND POA of Authorized Trustee
Copy of the Bank Statement (bank account
should be in the of trust)
Required Photograph of Managing Trustee

[ note: The two categories of trust account are private and

public trust. Private trust account is opened in the name of the
trustees whereas public trust account is opened in the name of
the trust. ]

3. Client details and deviations are punched in CMS (in-house software).

While entering the client details in CMS it is checked whether he/she is
debarred clients or not. If we found the client to be debarred then we
stop the account opening process of that account.

4. A confirm mail is sent to every client by CMS automatically. If any of

mail gets bounced then this problem is treated as deviation in CMS.

5. Forms with any deviation or deficiencies are retained by customer

care and this information is also entered in CMS.

7. Rectification and Updating are done in client details if required in

DPM.
Process of Batch Upload-
• First we rectify the details in DPM back office, which is punched by
the Branch.
• Then we create the Batch file.
• Batch File uploaded in the NSDL online software.
• Signature is captured by all the DP account.
• All the data is checked, verify and released by the different people
with different Login Id.

8. The captured forms are checked, verified and finally released by

different person (maker checker concept) punching and releasing, are
done from different IDs.
9. Forms they are sent to internal auditors for auditing. If they found any
deficiency in the form, first we rectify the deficiency with the help of the
branches.
11. Photocopy of the agreement along with the acknowledgement is
sent to the client. Dispatch Register should be maintained for the
record.
Dispatch Register prepared as follows-

Sr. Client Client Addres Dispatc Mode

No. Name Id s h Date of
Dispatc
h

VALIDATION OF DOCUMENTS

1.In case of joint holdings, POI and Proof of address documents must be collected in
respect of all the account holders.

2.All the document must be self attested by the client.

3. An authorized official of the DP should verify the photocopies of documents submitted

with their corresponding originals and put his/her signature on them with remarks
"verified with original" before proceeding to open the account.
4. The aforesaid documents are the minimum requirement for opening of a beneficiary
account. DPs are advised to exercise due diligence while establishing identity of the person
to ensure the safety and integrity of the depository system.

5. DPs can apply stricter criteria and accordingly, decide to accept selected documents out
of the list of documents prescribed above as POI and Proof of Address

PROCESS FOR OPENING DEPOSITORY ACCOUNT

• ORDINATY RESIDENT

PROCEDURE FOR CAPTURING OF DEMOGRAPHIC DETAILS OF THE

ACCOUNT HOLDER(S)

1.Capturing of PAN details

(i) We demand for a photocopy of the PAN card of the person(s) seeking to open the
account and verify the same with the original PAN card.

(ii) Further, the name of demat account holder(s) should be compared with the name
appearing on the website of the Income Tax Department (ITD) i.e.
http://incometaxindiaefiling.gov.in/challan/enterpanforchallan.jsp or alternatively
subscribe to the internet based service of NSDL (NSDL/POLICY/2007/0048 dated August
14, 2007)On this website, the name can be sought against the given PAN.

(iii) In case the name(s) do not match or the PAN is not present in the Income Tax
database, DPs should seek necessary clarification from the account holder(s) and activate
such accounts in the DPM System only after the discrepancy is resolved.

(iv) In case of joint accounts, the PAN of each of the joint holder should be captured in the
DPM System after making verification as explained above. As all DPs are aware, DPM
System is enabled to capture PAN of all joint holder(s) of a demat account.

(v)After verifying the details of PAN as mentioned above, the staff of the DP should affix
a stamp as ‘PAN verified’, on the photocopy of the PAN card(s).

(vi) Thereafter, PAN flag(s) should be enabled in the DPM System.

With respect to PAN, Clients have reported the following problems:

(a) PAN card has been lost / misplaced or PAN card was never received but has the PAN
allotment letter from the ITD;

(b) Change in the name of the Client due to marriage or voluntary action etc., (in case of
individuals) or due to merger, amalgamation etc (in case of a corporate entity).
In this regard, DPs are advised that the ITD issues a new PAN card with the same PAN
with changes in PAN data, for the above reported problems. For detailed procedure, DPs
may refer http://www.incometaxindia.gov.in or http://www.tin-nsdl.com

2. Capturing of local and correspondence address (NSDL/PI/2005/1102 dated June 22,

2005)

(a) DPs can capture two addresses in the DPM System for a Client (first holder/sole
holder) i.e. local and correspondence address. The Client Master Report and Export will
carry both these addresses.

(b) For both local and correspondence address of a Client, DPs should ensure that they
collect and verify the KYC documents and only then the same should be captured in the
DPM System.

(c) The local address would be the default address that would be forwarded to the Registrar
& Transfer Agent (RTA) as well as used for printing Transaction Statement (SOT) from
DPM System. However, the Client has the option to request the DP to use the other
address i.e. correspondence address for the aforesaid purposes. In such a situation, the DP
should disable the default indicator under the option "Beneficiary Address Local" (referred
to as 'Address Preference Flag' in batch file import format). DP may note that for all
existing accounts, the local address would be the default address

3. Capturing of Bank details (NSDL/PI/2000/2295 dated December 20, 2000):

Complete bank address including 9-digit MICR code is necessary for the Issuers to
undertake distribution of corporate benefits directly to the bank accounts of beneficial
owners. DPs are hereby advised to obtain a specimen copy of cheque and capture 9-digit
MICR codes for all the accounts opened with them. Further, DPs are advised to capture
bank address details strictly in the manner described below:

Row 1 : Building / Tower / Apartment / Palace / Chamber / Mansion

Row 2 : Street / Road / Marg / Lane / Avenue / Rasta
Row 3 : Area name
Row 4 : City name
Pin code : Bank address pin code

4. Mode of capturing the details in the DPM System

(a) The DP should enter the details of the Client as mentioned in the Account Opening
Form, in the DPM System after verifying with the POI and Proof of Address. It may be
mentioned that DPs can avail the facility of Bulk Verify and Release with respect to
opening of Client accounts in the DPM System (NSDL/PI/2007/0019 dated April 4, 2007).

(b) The DP should capture the Client’s signature(s) as given in the Account Opening Form
in the DPM System.

(c) The DP should save the details and enter the Client account number (Client ID)
generated by DPM System in the Account Opening Form.

(d) The DP should print the Client Master Report and give it to the Client alongwith a copy
of the Agreement. Such information should be provided only after the account is in
"Active" status in the DPM System. (NSDL/PI/98/583 dated November 18, 1998)

• PROCEDURE FOR OPENING HUF ACCOUNT

(a) Open the beneficiary account in the name of the Karta of the HUF.

(b) POI and Proof of Address of 'Karta' should be obtained as mentioned above.

(c) PAN details of the HUF should be captured in the DPM System after due verification.
(NSDL/POLICY/2006/0031 dated August 9, 2006)

(d) A mandate may be taken from the accountholder that the cheques drawn in favour of
'Karta' can also be collected in the account of HUF and vice-versa as Clients who have
opened HUF accounts in the name of 'Karta' may face difficulty in encashing cheques /
demand drafts in respect of dividend / interest warrant, since the bank account has been
opened in the name of HUF. DPs are advised to take note of the above and provide a copy
of ‘Client Master Report’ so as to enable the Clients to suitably take up the matter with
their banks. A copy of the letter received from RBI, clarifying the stand to be taken with
respect to bank account that are opened in the name of HUF may be provided at the
request of the Client's bank. (NSDL/PI/2005/0159 dated January 27, 2005 and
NSDL/POLICY/2007/0064 dated October 19, 2007)

• PROCEDURE FOR OPENING MINOR ACCOUNT

(NSDL/POLICY/2007/0004 dated January 11, 2007)

(i) Account opened in the name of minor should not have joint holder(s), and nominee

(ii) Obtain POI, Proof of Address and the photograph of the Guardian and minor both
(iii) Photocopy of school leaving certificate / Mark sheet issued by Higher Secondary
Board of respective states, ICSE, CBSE / passport of the minor / original or attested or
notarized (in case of photocopy) birth certificate of the minor to ascertain the date of birth
of the minor. At the time of accepting either of these documents, DP should verify the
same with the original.

(iv) PAN details of the minor should be captured in the DPM System after due verification.
(NSDL/POLICY/2006/0031 dated August 9, 2006)

Procedure to be followed by DPs on minor attaining majority

(NSDL/POLICY/2007/0004 dated January 11, 2007)

On minor attaining majority (i.e. 21 years of age in case of minor who’s Guardian is court-
appointed or 18 years where minor's account is represented by a natural guardian), DPs
should follow the procedure given hereunder. Further, to ascertain the minors who have
attained majority, DPs can access module 'Reports' / Master List / Minor turned Adult
available in the DPM System (Report displays accounts that are in status 'Active',
'Suspended for Debit' and 'Suspended for Debit & Credit')

(i) Communicate to the Client (minor attained major) about opening fresh demat account.
If the Client does not respond within one month from the date of communication, DPs are
advised to suspend the account for debit and disable the standing instruction for credit
pertaining to the account of minor.

(ii) On Client approaching the DP for opening a new account, DPs are advised as follows:

(a) Follow the account opening procedure mentioned above including executing an
agreement with the Client, as prescribed under Annexure B of the Bye Laws of NSDL.

(b) DPs are advised to note that ITD issues a new PAN card with same PAN with changes
on PAN data, on minor attaining majority. For detailed procedure, DPs may refer
http://www.incometaxindia.gov.in or http://www.tin-nsdl.com. DPs are advised to direct
their Clients accordingly, obtain new PAN details of the Client, follow the procedure laid
down above and capture the same in the DPM System. After due verification, enable the
PAN flag in the DPM system.

In case minor account is frozen due to non-compliance of PAN requirement

(a) Obtain photocopy of PAN card of the Client who has attained majority. Further, the
PAN card should carry the details of the Client in the capacity of a major and not of a
minor.
(b) DPs should satisfy itself that the PAN details submitted by the Client are indeed of the
same Client who has attained majority. In this regard, DPs may call for any additional
documents and / or clarifications to ascertain and satisfy itself about the identity of the
Client.

(c) After following the procedure mentioned above, we file the photocopy of the PAN card
along with the KYC documents of the minor.

(d) Thereafter, DPs are advised to follow the procedure in the below given sequence:

(i) Remove the suspension by initiating unfreeze instruction in the account of the minor.
Ensure that the status of the unfreeze instruction is 'Closed, Settled',

(ii) Transfer the securities to the account of the Client i.e. Client who has attained majority.
The account may be opened with the same DP or any DP as per the choice of the Client.
DPs can ascertain the target details of the Client by obtaining the Client Master Report
from the target DP.

(iii) Immediately close the account of the minor.

DPs may submit the claim for waiver of transaction fee charged on account of minor
attaining majority, once a month, (not later than two months after opening the new
account) to NSDL. Further, DPs are requested to note that if the Client has opened a new
account in its name, however, with joint holdings, such an account with joint holdings
shall not be eligible for waiver of transaction fees. (NSDL/PI/2005/0395 dated March 4,
2005)

In case a minor is a nominee, then DPM System has the facility to enable/capture the
following additional information: (NSDL/PI/2005/1102 dated June 22, 2005)

• Flag to indicate whether nominee is a minor;

• Date of birth of the minor nominee; and
• Details of name and address of the Guardian of the minor nominee.

Accounts opened in the names of Partners for holding securities that belong to a
Partnership firm (NSDL/POLICY/2007/0009 dated February 12, 2007)

(i) The account should be opened only in the name of Partners and the securities that
belong to the Partnership Firm can be held in this account.

(ii) Obtain POI and Proof of Address of the Partners as per the documents. Further, obtain
a copy of the Partnership Deed to verify the names of Partners.

(iii) Obtain an undertaking in the prescribed format from the Partners to the effect that the
Partners would comply with the provisions of the Companies Act, 1956 and other
applicable statutes in respect of securities of the Partnership firm held in the account
opened in the name of the Partners.

(iv) PAN details of the Partnership firm should be captured against the names of all the
Partners after due verification (NSDL/POLICY/2006/0031 dated August 9, 2006).

(v) Capture the bank details of the Partnership firm.

• Non-Resident Indian / Foreign National (NRI/FN)

Procedure to be followed by DPs with respect to KYC documents and PAN of NRI
(Repartiable/Non- Repartiable) and FN at the time of opening an account in the
respective category:

(i) Obtain POI and Proof of Address of the applicant.

(ii) Obtain a declaration from the Client that he/she has complied and will continue to
comply with FEMA regulations.

(iii) DPs are advised to obtain photocopies of Proof of Address in respect of foreign
address where the NRI/FN is residing and verify the same with originals. In case the
NRI/FN Clients have Indian address, DPs are advised to obtain photocopies of Proof of
Address of local address and verify the same with originals. Further, in case if the NRI/FN
has submitted only Proof of Address of the country (foreign address) where the NRI/FN is
residing, in such a situation, DPs may capture the foreign address in both local and foreign
address field given in the DPM System.

(iv) If DPs find it infeasible to carry out 'in-person' verification of the NRI/FN Client by
their staff and/or verify the original KYC documents (POI and Proof of Address i.e.
foreign address, where the NRI/ FN is residing) along with PAN card, in such a situation,
it is clarified that:

(a) The account opening form and photocopies of the KYC documents and PAN card
should be duly signed by the account holder; and

(b) photocopies of the KYC documents and PAN card is attested by the Indian
Embassy/Consulate General of the country where NRI/FN is residing; and
(c) the attestation is to the effect that it has been verified with the originals.

DPs should open the depository accounts or accept the PAN card only after it is satisfied
with the authenticity of the documents (POI, Proof of Address and PAN card).

(v)In case where ‘in-person’ verification for NRI/FN Client has been carried out by the
staff of the DP or if he/she personally visits the office of the DP to submit the KYC
documents and PAN card, in such a situation, the NRI/FN would be exempted from
obtaining attestation, on KYC documents and PAN card.

(NSDL/POLICY/2007/0022 dated April 18, 2007, NSDL/POLICY/2006/0049 dated

October 19, 2006 and NSDL/POLICY/2006/0067 dated December 28, 2006).

NRI (Repartiable/Non- Repartiable) account (NSDL/PI/98/007 dated January 2, 1998):

(i) While opening an account for an NRI Client, the DP should obtain copy of the RBI
approval letter, if any, for acquiring securities, alongwith the account opening form and
other necessary documents.

(ii) The account should be opened in the name of the NRI in the DPM System under
repatriable category when securities are held on repatriable basis and under non-repatriable
category when securities are held on non-repatriatable basis.

(iii) DPs are advised to capture the following details in the DPM System against the RBI
reference number and date :

(a) If the NRI has at any time purchased securities from the secondary market, i.e., under
Portfolio Investment Scheme, then the RBI reference number and date mentioned in the
RBI approval letter should be entered.

(b) If the NRI has never purchased securities from the secondary market, but the securities
have been allotted in the primary market, i. e., under Direct Investment Scheme, then the
DP should mention the following :

RBI Reference No. : "Under General Permission"

RBI Approval Date : Present date

(Subsequently, whenever the NRI gives dematerialisation or receipt instructions in respect

of purchase of securities from the secondary market, the RBI reference number and date
should be entered therein)
(c) If the NRI does not hold any securities, then the DP should mention the following :

RBI Reference No. : "No Holdings"

RBI Approval Date : Present date

(Subsequently, whenever the NRI gives dematerialisation or receipt instructions in respect

of purchase of securities from the secondary market, the RBI reference number and date
should be entered therein)

(iv) While processing dematerialisation, receipt, delivery or pledge instructions from NRI
Client, the DP must obtain a copy of the relevant RBI approval letter (e.g., RBI approval
letter for sale in case of delivery instructions). The DP need not obtain copy of the RBI
approval letter for every instruction, if the same approval applies to each such instruction.

RBI Clarification with respect to NRI/FN :

RBI vide its letter dated July 18, 2000 to one of the DP of NSDL has issued the following
clarifications with regard to permission to open Bank Account and Depository Account to
sell shares acquired under ESOP by FN:

(a) RBI approval is not required for opening demat account.

(b) RBI has not put any condition that for opening of demat account, the non-resident
shareholder must have a bank account. The demat account may be opened as per the norms
of NSDL and the concerned bank.

(c) RBI has already granted General Permission for sale of shares on stock exchanges by
non-residents and for sale of shares by negotiated deals, application in TS-1 form may be
submitted to concerned Regional Office of RBI for obtaining permission.

(d) FN can sell the shares held under ESOP on stock exchange without RBI permission.

DPs are required to ensure that all transactions in the account are in compliance with
FEMA regulations. Accordingly, DPs are advised to obtain from the NRI/FN, necessary
documents evidensing general/specific approvals as may be required under FEMA
regulations.

• Guidelines in respect of account opening in case of Body-Corporate

(NSDL/PI/2002/1319 dated August 8, 2002)

1) Procedure for opening account of a Body-Corporate

1.1) DPs shall obtain the following documents at the time of account opening

a) Memorandum & Articles of Association, board resolution for opening and operating
demat account and the list of authorised signatories alongwith their specimen signatures
and photographs, etc.

b) Introduction by an existing account holder or by the applicant's bank.

c) Proof of Address of the corporate evidenced by the document registered with Registrar
of Companies (ROC) or an acknowledged copy of Income Tax Return or Bank Statement
or Leave and License agreement/Agreement for sale or telephone bill (not more than two
months old) or electricity bill (not more than two months old) in the name of body-
corporate.

1.2) An authorised official of the DP should verify the proof of address with the original
documents and put his/her signature on them with remarks "verified with original"
before proceeding to open the account. 1.3) PAN, address and bank details of the body-
corporates should be captured after due verification.

SWOT ANALYSIS OF TSL

STRENGTHS

1 TSL’s core business is DEMAT and TRADING account so it gives its full focus to
DP services where as other organizations take it as their secondary business.
2 TSL’s image has always been crystal clear.

3 The margin of error is almost nil in the case of the execution of trading as TSL
provides the real time trading. Three different people are involved in making,
checking and verifying of trading transactions where as other DPs have only one
person for doing all these three jobs.

4 TSL executes Demat requests and dispatches it mostly in one week to get the shares
dematerialised at the earliest.

5 TSL is also providing the facility of brokerage. This feature give the benefits of
having DMAT account and trading account in a same DP.

6 TSL has designed its tariff according to its clients as there are different schemes and
tariff for the different clients as small investors, frequent traders, single scrip
holding, investors with negligible transaction etc.

7 TSL is also proved to be a good financial advisor as it provides various financial

advices to the clients time to time.

8 TSL’s employees always solve the queries of the clients and they are always
dedicated to the client so that clients do not suffer for lack of information.

9 TSL is now concentrating on its marketing through various channels like franchisee,
print and electronic media and display banners in public places, canopy events. For
having better results, it has also formed its own marketing team which visits to
various organizations and gives information of the products and services provided
by the CSPL.

10 At TSL employees are also satisfied with their work. They always get friendly
environment at the work place.

WEAKNESS

1 The market has been facing tough time since recession; TSL’s business is also
 affected as the result of the bearish market.

2 The tariff structure of TSL seems to be costlier than other DPs so it can go against
TSL.

2 It does not have a separate counter for the client’s query so sometime clients find it
difficult to solve their queries.

4 The office has limited place so sometimes the office seems to be overcrowded.

5 As TSL is a subsidiary of TCL, it does not do its marketing much, so competitors

took the advantage of this weakness.

6 Recent changes in the guide lines of SEBI have made its task cumbersome.

OPPORTUNITIES

1. TSL has both services in one place so it will increase the number of the clients.

2. Customer will move towards TSL as they find it comfortable to have the Demat
account and trading account at the same DP.

3. TSL is now doing aggressive marketing. It will also help increase in market share.

4. People are taking more interest in stock market than before for past few years so it’s a
good chance for TSL to convert interested people into its client.

THREATS
1 Many other DPs like Karvy, Indiabulls, Share Khan Etc. are giving tough
competition to TSL.

2 Other DPs are charging less for Demat account as well as trading account which can
go against TSL.

3 The depressed market and uncertain condition that has affected the business of TSL
is proving to be a threat for it.

4 Any new changes in SEBI’s guide line can go against the organization.

5 Marketing strategies of other DPs can also change the mindset of the clients.

FINDINGS
1 People are well aware of the DPs and most of them are interested in investing
their money in capital market.

2 Larger chunk of People like to invest their money in Share, Fixed deposits,
Saving account and mutual.

3 It has been found that most of the clients have that Demat system is better than
the traditional.

4 TSL is facing competition from various other DPs like Karvy, India Bulls, ICICI
and Share Khan.

5 It has been found that TSL is providing better services than other DPs and TSL’s
clients are more satisfied with the services provided by TSL then any other DP.

6 TSL executes Demat request on the same day. So it takes less processing than
any other DP.

7 It has been observed that clients find the tariff structure of TSL expensive than
other DPs.

1 TSL provides financial advices to its clients on their requirement.

RECOMMENDATIONS
1. TSL must start dealing in commodities market. As it will give new dimensions to
portfolio of customer.
2. The account opening charges should be reduce to attract more clients towards TSL.

3. TSL should do its marketing more effectively.

4. TSL should diversify its business, as its core business is DP services, which highly
depends on the stock market situations.

5. TSL should open some other branches in other parts of India in order to reach to
more and more people.

6. TSL should have more work forces.

 Bibliography

Websites

2 www.business.com

3 www.nsdl.com

4 www.nse-india.com

5 www.google.com

6 www.netashare.com

7 www.bseindia.com