A depository is an organisation which holds securities of investors in electronic form at the request of the investors through a registered Depository Participant. It also provides services related to transactions in securities. In the Depository System, the securities of a shareholder are held in the electronic form by conversion of physical securities to electronic form through a process called 'dematerialization' (demat) of share certificates and facilitates transactions electronically without involving any share certificate or transfer deed.
Depository system is playing a significant role in stock markets around the world and hence has become popular and prevalent in many advanced countries. In India the National Securities Depository Ltd. (NSDL), promoted by Industrial Development Bank of India, Unit Trust of India, and National Stock Exchange is the first depository. A second Depository by name Central Depository Services (India) Ltd, promoted by The Stock Exchange, Mumbai and Bank of India has been registered recently and will commence its operations shortly. Investors have choice of two depositories now
The Depository performs its functions through a network of Depository Participants (DPs) who interact with the Clearing Members and Investor. The Depository carries out following functions through its participants:-
Enabling the surrender and withdrawal of securities through the process of demat and remat to and from the depository system,
Maintaining investors' holdings in the electronic form through computers,
Effecting settlement of securities traded on the stock exchanges.
Carrying out settlement of "off market trades" (i.e. trades not done on the stock exchanges)
Advising periodically to the Share Registrar / Issuer about the beneficial owners of the securities.
Objectives of the Study
1) To know the various functions which are conducted for day-to-day operations in RELIANCE MONEY.
2) To know the various norms adopted by RELIANCE MONEY.
3) To know the various products and services rendered to its customers.
4) To know whether the services provided by RELIANCE MONEY is able to attain its customer‘s satisfaction or not.
5) To find and try to bridge the gap between the expectations and experiences of the customers in case of dissatisfaction.
6) To know how the branch functions in terms of sales and operations.
7) To market and to promote the products of RELIANCE MONEY.
8) To generate new business opportunities for RELIANCE MONEY by opening up franchisees.
have gathered information about our project from the interaction with the customers of our company i.e. Reliance Money. The sampling method used was basically convenience sampling and most of the calls made were cold calls made on the generated database of recipients of other companies.
The secondary data, I have collected from the various websites of reliance money, various journals, magazines etc.
The methodology adopted in the procedure followed in order to give the projects its shape is:
Having a proper understanding of working of a financial company.
Inquiring and looking into the practicalities of work environment to have a correct insight of process adopted.
Gaining information from files, documents, folders and soft copy stored in system.
Seeking information from the staff and taking their views in consideration.
Browsing the website of various financial institutions and BSE and NSE for the necessary information required.
Finally compiling the primary and secondary data gathered, then making a study of option available.
Depository Participant provides the following services:
Account Opening: To utilize the services offered by a depository, any person having investment in any security or intending to invest in securities needs to have a demat account with a CDSL-DP. This holder of such demat account is called as "Beneficial Owner (BO)". A BO can maintain a demat account with zero balance in such account. A BO can open more than one account with the same or multiple DPs, in the same name/s and order, if he/shedesires so. The investor can approach any DP/s of his/her choice to open a demat account.
Dematerialization: Dematerialization is a process by which physical certificates (of shares / debentures / other securities) are converted into electronic balances. A BO has to submit the request for dematerialization by submitting the demat request form (DRF) duly completed along with the concerned physical certificates, to his/her DP.
Processing Delivery & Receipt Instructions: To settle trades done on a stock exchange (on-market trades) and trades, which are directly settled between two BOs (off-market trades), BOs submit duly completed delivery instructions in the prescribed form to DP. For receipt of securities into his/her account, a BO can give one time "standing instruction" to DP. Once such a standing instruction is given to the DP, there is no need to submit separate instructions for receipt every time the investor buys securities.
Account Statement: Generally a DP sends to the BO, a statement of his account, monthly, if there is any transaction in the account or every quarter if the account is not operated during that period.
Rematerialisation: Rematerialisation is the process by which the electronic balances held in the demat account can be converted back into physical certificates
Pledging: If the BO decides to pledge any securities in his BO account, he can avail of the same by submitting the pledge creation form duly completed, to his DP.
Nomination: BO accounts also have a facility for nomination in favor of any person.
Transmission of securities: CDSL offers a facility for transmission of balances held in BO account/s (to other BO Account/s) if so required due to death, lunacy, bankruptcy, insolvency or required due to operation of any law.
Change in Address: A BO who wishes to register his change in address submits his/her request in writing to his/her DP. The changes entered by the DP in the CDSL system will be automatically downloaded to all the companies in which the BO is holding securities. This facility offered by CDSL saves money, time and effort for the BO.
Bank Account Details: SEBI has made it mandatory for companies to print details of bank account of the BO on dividend/interest warrants etc. to prevent possibilities of misuse of the warrants. All BOs should submit a request in writing to the DP if they wish to record / change their bank account details.
Every investor who wants to hold shares in Demat form must open account with a DP of his/her choice. The DP provides all the services relating to transmission of shares and for this service DP levy some charges which is to be paid by the account holder, and charges for annual maintenance which is to be paid by account holder, in turn the DP provide clients with passbook and delivery instruction slips to operate from his Demat a/c .
Dematerialization or demat is a process to convert the securities held in physical form into an electronic form or to directly allot securities in electronic record form. These electronic records of securities are shown as ―electronic balances‖ in the demat account through a depository participant (DP). DP provides a link between the account holder (beneficiary owner or BO) and the company on one hand and National Securities Depository Limited (NSDL) or Central Depository Services Limited (CDSL) on the other hand.
The expectations of the customers are regularly increasing because of the increasing competition and emergence of global market. In such conditions it becomes very necessary for a company to fulfill all the expectations of the customers and give them a delightful experience. Though reliance money is working very hard in order to do so but there is a gap between the expectations and the experiences of the customers which is widening regularly. This gap has emerged because of the sales oriented focus of reliance money. In order to increase the sales figures, the company has somewhere ignored the service delivery and left the customer on his own. In order to fill this gap, company needs to customize its services as it is dealing into financial instruments. These financial instruments are risky and it is very essential to make the customer feel that you are taking care of his money. This can be done only if all the services are customized and the system is made transparent for the customer as well as for the employees.
Chunawalla S A., Commentry on Consumer Behavior, Himalayan Publishing House,2005.
Leon G. Schiffman & Leslie Lazar Kanuk, Consumer Behaviour, 9th Edition, Peayon Prentice Hall, 2007.