Investing through SHCIL

INVESTING THROUGH SHCIL : ANALYSIS OF
CUSTOMERS’ INVESTMENT PREFERENCES
Submitted By:
Keshin Pandit
(A30506416027)
Faculty Guide: Industry Guide:
Mrs. Shilpa Katira Mrs. Radhika Mungre
Summer Internship Project submitted in lieu of partial fulfillment of the degree
BBA + GDBA (2016-19)
May 21 – July 4, 2018
1

CERTIFICATE
This is to certify that Mr. Keshin Pandit is a bonafide student of Amity Global Business
School, Indore and has successfully completed his Summer Internship in lieu of partial
fulfillment of the degree BBA + GDBA (2016-19).
The Project title is INVESTING THROUGH SHCIL : ANALYSIS OF CUSTOMERS’
INVESTMENT PREFERENCES.
Date:
Mrs. Shilpa Katira Mrs. Radhika Mungre Dr. Rajeev Samuel
(Faculty Guide) (Industry Guide) (Director)
2

DECLARATION
I, the undersigned, hereby declare that the project report entitled, INVESTING THROUGH
SHCIL : ANALYSIS OF CUSTOMERS’ INVESTMENT PREFERENCES submitted by
me to Amity Global Business School, Indore in lieu of partial fulfillment of the degree BBA
+ GDBA (2016-19), is my original work and the conclusions drawn therein are based on data
collected by myself.
Place:
Date: Keshin Pandit
4

ACKNOWLEDGMENT
I express my sincere thanks to Dr. Rajeev Samuel, Principal, for providing me with all the
necessary support and facilities for the research.
I am also grateful to my project guides, Mrs. Shilpa Katira & Mrs. Radhika Mungre. I am
extremely thankful and indebted to them for sharing their expertise and sincere & valuable
guidance and encouragement extended to me.
I sincerely express gratitude to all of the Department faculty members and the staff at SHCIL
(Indore Branch) for their help and support. I also thank my parents for the unceasing
encouragement, support and attention.
I also place on record, my sense of gratitude to one and all, who directly or indirectly, have
lent their hand in this venture.
Keshin Pandit
(A30506416027)
5

ABSTRACT
The primary aim of this report is to analyze the investment preferences of customers based on
the primary data gathered via a Survey (Questionnaire).
The project starts with an introduction to the Stock Holding Corporation of India Limited and
its products and services. The next section elaborates on the work done during the internship
and the experiential learnings gained.
The survey data is analyzed using Pie Charts, Bar Graphs and Chi-Square tests in order to
determine trends related to the various financial products and services offered by the Stock
Holding Corporation of India Limited.
Based on the findings, it was established that Bank Fixed Deposits remain the most preferred
form of investment, closely followed by Mutual Funds, National Pension Scheme Accounts
and Provident Funds. While, Corporate Fixed Deposits and Bonds are the least preferred
forms of investment.
6

TABLE OF CONTENTS
1. CERTIFICATE 2
2. DECLARATION 4
3. ACKNOWLEDGMENT 5
4. ABSTRACT 6
5. LIST OF ABBREVIATIONS 9
6. INTRODUCTION 11
I. A Brief History
II. Organisation
III. Financial Statistics
IV. Products And Services Offered
7. PRODUCTS AND SERVICES 17
I. Demat
II. Broking
III. E-Stamping, E-Registration & E-Court Fee
IV. Clearing Member Services
V. Distribution of Offers from Business Associates
VI. Bullion
VII. GoldRush (Gold Accumulation Plan)
VIII. National Pension Scheme
IX. Custodian Of Securities
X. Constituent Subsidiary General Ledger (CSGL)
XI. Pension Fund Administration
XII. Document Management Services
8. PRACTICAL EXPERIENCE AT SHCIL 25
I. Week 1
II. Week 2
III. Week 3
IV. Week 4
V. Week 5
VI. Week 6
VII. Week 7
VIII. Experiential Learnings
9. EMPIRICAL RESEARCH STRATEGY AND METHODOLOGY 36
I. Aims and Objectives
II. Methodology
III. Validity and Reliability
IV. Limitations
10. ANALYSES 38
I. Questionnaire
II. Personal Information
III. About SHCIL
IV. Investment Details
7

TABLE OF CONTENTS
11. CONCLUSION 70
I. SHCIL : Current Scenario
II. Research Results
III. Recommendations
12. APPENDICES 74
I. Research Terms
II. Financial Terms
III. Survey Data
13. REFERENCES 83
8

LIST OF ABBREVIATIONS
Abbreviation Description
AMFI Association of Mutual Funds of India
ASBA Applications Supported by Blocked Amount
BSDA Basic Services Demat Account
BSE Bombay Stock Exchange
BTST Buy Today Sell Tomorrow
BWR BrickWork Ratings
CARE Credit Analysis & Research Limited
CDSL Central Depository Services Limited
CRA Central Record keeping Agency
CRISIL Credit Rating Information Services of India Limited
CRM Customer Relationship Management
CSGL Constituent Subsidiary General Ledger
FD Fixed Deposit
FI Financial Institution
HUF Hindu Undivided Family
IAS Indian Accounting Standards
ICICI Industrial Credit and Investment Corporation of India
ICRA Investment Information and Credit Rating Agency of India
IDFC Infrastructure Development Finance Company
IFCI Industrial Finance Corporation of India
IND India Ratings & Research
IPO Initial Public Offering
IRDAI Insurance Regulatory and Development Authority of India
ISIN International Securities Identification Number
ITR Income Tax Return
LBMA London Bullion Market Association
LIC Life Insurance Corporation of India
MF Mutual Fund
MICR Magnetic Ink Character Recognition
MMTC Metals and Minerals Trading Corporation of India
MTF Margin Trading Facility
NCD Non-Convertible Debenture
NHAI National Highways Authority of India
NPS National Pension Scheme
NSDL National Securities Depository Limited
NSE National Stock Exchange
OCR Optical Character Recognition
PAMP Produits Artistiques Métaux Précieux
PAN Permanent Account Number
PFC Power Finance Corporation
PFRDA Pension Fund Regulatory and Development Authority of India
RBI Reserve Bank of India
9

LIST OF ABBREVIATIONS
Abbreviation Description
REC Rural Electrification Corporation
SBI State Bank of India
SEBI Securities and Exchange Board of India
SHCIL Stock Holding Corporation of India Limited
SIP Systematic Investment Plan
SSL SHCIL Services Limited
STP Systematic Transfer Plan
SWP Systematic Withdrawal Plan
TM Trading Member
UCC Unique Client Code
UTI Unit Trust of India
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INTRODUCTION
I. A Brief History
Stock Holding Corporation of India Limited was established in 1986 and is India’s largest
custodian and depository participant, based in Mumbai, Maharashtra. It is a subsidiary of
IFCI Ltd. SHCIL is also the largest Professional Clearing Member in India. SHCIL was
granted the status of a government company as per Section 2(45) of Indian Companies Act,
2013, in 2014.
SHCIL processes approximately 40% of the transactions on NSE & BSE and, 20% of the
market capitalisation of all scrips listed on BSE (in terms of value processed), annually.
II. Organisation
SHCIL’s mission statement is “To be a world class technology driven and client focused
market leader in financial and technical services”. The organisation’s Registered Office is
situated in Parel, Mumbai while the Main Operations Office is situated in Mahape, Navi
Mumbai. The company employs approximately 5000 personnel.
The internal auditors for SHCIL are M/s. Shah Gupta & Co., Chartered Accountants,
Mumbai. The statutory auditors are M/s. Chaturvedi & Shah, Chartered Accountants,
Mumbai.
The details about the Board of Directors are listed in Table 1 (Page 12).
SHCIL has 186 branch offices across 150 cities in India, divided into the following zones:
1. Andhra Pradesh-Telangana
2. Delhi-NCR-Haryana-Uttarakhand
3. Gujarat
4. Karnataka
5. Maharashtra-MP-Chattisgarh
6. Mumbai-Goa
7. Punjab-J&K-Chandigarh
8. Tamil Nadu-Kerala
9. Uttar Pradesh-Bihar
10. West Bengal-Orissa-Jharkhand-North East
The Indore branch office is located at D.M. Tower, Zanjeerwala Square. The branch
organisation structure is described in Chart 1 (Page 13).
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INTRODUCTION
S. No Name Representing Institution
Date of
appointment
Holding of
the
Institution
1
Dr. E. Sankara Rao
Non Executive
Chairman
IFCI Limited 24 Aug 17 52.86%
2
Shri B. N. Nayak
Non Executive
Director
IFCI Limited 15 Dec 16 52.86%
3
Shri Prakash P.
Mallya
Independent Director
(Non-Executive)
Not applicable 22 Sep 08
Not
applicable
4
Shri M.S. Sundara
Rajan
(Non-Executive)
Not applicable 17 May 14
Not
applicable
5
Shri M.V. Nair
(Non-Executive)
Not
applicable
6
Shri C. M. Dixit
(Non-Executive)
Not
applicable
7
Shri Gautam Sen
(Non-Executive)
Not
applicable
8
Shri B. Babu Rao
Non Executive
Director
Administrator of the Specified Undertaking of
Unit Trust of India (SU-UTI)
21 Jun 14 16.96%
9
Dr. (Mrs) Jaya
Balachandran
Non Executive
Director
Not applicable 28 Jul 15
Not
applicable
10
Shri Vipin Anand
Non Executive
Director
Life Insurance Corporation of India 4 May 18 14.97%
11
Shri Hemant G.
Rokade
Non Executive
Director
General Insurers' (Public Sector) Association
of India (GIPSA)
4 May 18 14.95%
12
Shri Ramesh N.G.S.
Managing Director &
CEO
Not applicable 28 Jul 14
Not
applicable
13

INTRODUCTION
Branch Structure
14
Branch Incharge
Radhika Mungre
Operations and Sales Trading
Prateek Shrotriya
Salony Bhavsar
Satya Shrivastava
Shikha Singhi
Vipin Mangal
Vikas Sharma
Vikas Tirolle

INTRODUCTION
III. Financial Statistics
Pursuant to the notification dated February 16, 2015 issued by the Ministry of Corporate
Affairs, SHCIL adopted the Indian Accounting Standards (IAS) under the Companies (Indian
Accounting Standards) Rules (2015) w.e.f April 1, 2016.
As per IAS, the financial status of the company is shown in Table 2.
Particulars 2015-16†
2016-17†
Total Income* 295 355
Profit After Tax* 41 56
Total Assets* 1296 1431
Book Value per Share 616 680
(*In crores
†
In Rupees)
As of 2017, the Equity Share Capital breakup of the organisation includes 0.26% in publicly
held shares and 99.74% in Bank/FI held shares of the total of 2,10,54,400 shares. Industrial
Finance Corporation of India (IFCI) Ltd is the majority holder with 52.86% shares held. The
other shareholders are:
1. Unit Trust of India (UTI), 16.96%
2. Life Insurance Corporation of India (LIC), 14.97%
3. General Insurance Corporation of India, 2.99%
4. New India Assurance Company Ltd, 2.99%
5. United India Insurance Company Ltd, 2.99%
6. The Oriental Insurance Company Ltd, 2.99%
7. National Insurance Company Ltd, 2.99%
15

INTRODUCTION
IV. Products and Services Offered
SHCIL provides various products and services divided under the following categories:
1. Retail
i. Demat
ii. Broking
iii. E-Stamping, E-Registration, E-Court Fee
iv. Distribution of
a) Mutual Funds, FDs & Bonds, IPOs
b) Loan Products
c) Gold & Silver – Coins & Bars
v. Professional Clearing Member
vi. National Pension System
vii. GoldRush (Gold Accumulation Plan)
2. Institutional
i. Custodian of Securities
ii. Fund Accounting Services
iii. Constituent Subsidiary General Ledger (CSGL)
iv. Pension Fund Administration
v. Document Management Services
The aforementioned products and services are explained in the next section.
16

PRODUCTS AND SERVICES
I. Demat
Dematerialization (DEMAT) is the move from physical certificates to electronic book
keeping. A DEMAT Account provides the facility of holding shares and securities in
electronic format. During online trading, shares are bought and held in a DEMAT account,
thus facilitating easy trade for the users. DEMAT Account services are provided by
depositories such as NSDL and CDSL through Intermediaries / Depository Participant / Stock
Broker such as SHCIL. The charges of the DEMAT account vary as per the volume held in
the account, type subscribed and conditions presented by the depository and depository
participant.
At SHCIL, the individual investor services started in 1998. To date, SHCIL holds
approximately 7 lakh accounts. All the branch offices are networked, thus allowing the
customers to reach the company across the country.
To open a DEMAT account at SHCIL, following guidelines are to be followed:
1. Applicant should fill the Account Opening Form and submit the same along with the
Rights & Obligations.
2. The form should be submitted along with the following documents:
i. Copy of the PAN Card(s) of all the holder(s). Original PAN Card(s) to be
produced for verification.
ii. A valid proof of identity / proof of address [License, Passport, Aadhaar, Voter ID]
for all the holder(s). Original documents have to be provided for verification.
iii. Proof of bank details and MICR code [Cancelled cheque, Pass Book copy,
Account Statement].
iv. Tarriff duty signed by all the holder(s).
v. 2 Passport size photographs.
3. In person verification of all the account holder(s) is mandatory as per Depositories
Guidelines.
4. Nomination / Declaration is mandatory against the individual beneficiary accounts as
per Depositories Guidelines.
5. Any corrections / modifications have to be authenticated by all the holder(s).
Accounts can be frozen / suspended:
1. On client request.
2. On request by statutory authority such as Depository, SEBI, Income Tax, Police etc.
3. On the basis of court order.
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Accounts can be unfrozen:
1. On client request.
2. On request by statutory authority such as Depository, SEBI, Income Tax, Police etc.
3. On the basis of court order.
Freezing is available at account level, quantity level and ISIN level.
The accounts can be transmitted in the event of death of the beneficiary account holder(s).
There can be four situations in tranmission of accounts:
1. When the account has joint holders and one of the holders dies
2. When the account has a sole holder with a nominee
3. When the account has a sole holder without a nominee
4. In case of HUF account where the karta is deceased.
SHCIL provides the following information to account holders:
1. Transaction cum Billing and Holding statement if there has been a transaction in the
account.
2. Fortnightly for Trader Clients.
3. Monthly for Normal Clients.
4. Quarterly for BSDA Clients.
The Transaction cum Billing and Holding statement contains the following details:
1. Details of transfers executed.
2. Confirmation of dematerializations / dematerialization requests.
3. Rejection of dematerializations / dematerialization requests.
4. Movement of securities viz., amalgamation, face value changes etc.
5. Movement of securities on account of pledge creation / closure / invocation.
6. Information of allotment details in case of primary market issues.
7. Payment and dues details.
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II. Broking
SHCIL in capacity as a Sub-Broker provides share broking services in association with
StockHolding Services Ltd. (SSL), the member broker on BSE.
SHCIL provides the following facilities for broking:
1. Investment in equity and derivatives.
2. Internet trading facility.
3. Application for IPOs.
4. Allotment and redemption of Mutual Fund units through BSE STAR MF.
5. Margin Trading Facility (MTF) where, the client can trade with just 50% of the total
trade amount with the rest of the amount being funded by SSL. The funded amount is
payable only on closing the position either by sale of securities or pay-in of the
amount funded by SSL.
6. Systematic Investment Plan in Stocks where the client can invest in selected stocks /
gold ETFs of his/her choice on regular intervals for a fixed tenure on prevailing
market rates.
III. E-Stamping, E-Registration & E-Court Fee
E-Stamping is a computer based application and a secured electronic way of stamping
documents. SHCIL is the only Central Record Keeping Agency (CRA) appointed by the
Government of India. It is responsible for User registration, Imprest Balance Administration
and overall E-Stamping Application Operations and Maintenance.
E-Registration Fees collection system is a secure electronic way of collection of registration
fees along with other charges and payment mechanism to the State Government. SHCIL
provides the convenience of paying Stamp Duty and Registration Fee simultaneously.
Various state governments have authorised SHCIL to collect court fees via the E-Court
System.
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IV. Clearing Member Services
SHCIL is a Custodian / Professional Clearing Member of the derivative segment at BSE and
at the Futures & Options segment of the NSEIL respectively. The company performs the
following functions:
1. Clearing – Determining positions to settle.
2. Settlement – Performing actual settlements.
3. Collateral Management – Collection of collateral, valuation on a regular basis and
setting up exposure limits for TMs and institutional clients.
4. Risk Management – Setting position limits based on up front deposits / margins for
each TM and monitoring positions on a continuing basis.
The company accepts collateral deposits towards base capital and additional base capital
requirements stipulated by NSE for clearing members trading on its capital market, Futures &
Options, Currency Futures Derivatives segments. The company currently offers Depository
services to more than 680 clearing members of various exchanges connected with NSDL and
CDSL.
V. Distribution of Offers from Business Associates
SHCIL provides its business associates with the opportunity to offer an array of products:
1. Bonds – At present, SHCIL offers 7.75%(Taxable) Savings Bonds 2018, issued by
RBI and Capital Gain Bonds (54EC Bonds) issued by REC, NHAI and PFC at an
interest rate of 5.25% p.a.
2. Mutual Funds – Professionally managed trusts that collect investors money and invest
it in securities. SHCIL is an AMFI registered mutual fund distributor. The company
distributes funds from 32 major fund houses.
3. Corporate Fixed Deposits – SHCIL accepts applications for corporate fixed deposit
applications for 9 companies (financial institutions and non-banking finance
companies). Corporate FDs provide higher interest rates for senior citizens, higher
interest rates than Bank FDs and loan facility against the FDs.
4. Corporate NCDs – SHCIL provides the facility for clients to invest in Non-
Convertible Debentures (NCDs). NCDs are rated by credit agencies like CRISIL,
ICRA, CARE etc.
5. Initial Public Offering (IPOs) – SHCIL provides the facility for clients to invest in
IPOs through any of the branch offices. The applications are made available at the
offices some days before the IPO dates.
21

6. Insurance – SHCIL is licensed by the Insurance Regulatory and Development
Authority of India (IRDAI) as a Corporate Agent. The company offers the following
insurance corporations’ schemes:
i. Life – LIC, ICICI Prudential, SBI Life.
ii. Non-Life – New India Assurance, Bajaj Allianz, ICICI Lombard.
iii. Health – Star Health, Apollo Munich, Religare Health.
7. Loan against Securities – SHCIL arranges loans against securities including FDs,
insurance etc. The company assists in documentation and processing. The documents
required for the process are:
i. A depository account with SHCIL.
ii. Copy of any two of the following identity proofs:
a) Passport
b) Driving License
c) Voter ID
d) PAN
e) Aadhaar
iii. 2 passport size photographs.
VI. Bullion
SHCIL sells gold and silver in tie up with MMTC-PAMP India Pvt Ltd, the only LBMA
certified gold and silver refinery. The precious metals are available in the form of coins and
bars of various denominations and are certified for purity.
VII. GoldRush (Gold Accumulation Plan)
This plan allows clients to purchase and accumulate gold in a fair and transparent manner.
Clients have complete discretion with regards to amount of purchase, frequency and timeline
for taking delivery of gold. Features of this plan are:
1. Clients can purchase a minimum amount of Rs. 1000 or in multiples thereof.
2. Nomination is mandatory for all clients except minors.
3. Clients can seek physical delivery in the form of coins or bars ar anytime or multiple
times as per their discretion.
4. It is mandatory for clients to take delivery of the total gold accumulated in his/her
account after 5 years.
22

VIII. National Pension Scheme (NPS)
A scheme introduced by the Government of India and regulated by the Pension Fund
Regulatory and Development Authority of India (PFRDA) under PFRDA Act 2013, NPS
empowers subscribers to plan their own pension. SHCIL has been appointed as Point of
Presence by PFRDA for the NPS. Features of the scheme are:
1. Open to citizens between the ages of 18 and 65.
2. Minimum contribution per year is Rs. 1000 and a minimum of one contribution per
year is mandatory.
3. No entry and exit loads.
4. Additional tax benefit of Rs. 50,000.
IX. Custodian of Securities
SHCIL provides custodial services to India’s leading financial institutions, insurance
companies, mutual funds, foreign portfolio investors, banks, indian and foreign venture
capital companies, funds, PF trusts & corporates.
The company provides both electronic and physical safekeeping services with a
comprehensive document tracking and storage system. Other facilities provided are:
1. Daily trade reports, collateral margin reports, account statements, outstanding position
reports etc.
2. In-house technology support to ensure that high volume-time critical transactions are
handled within a secured environment.
3. High security vaults with state of the art technology.
4. Escrow services to foreign investors.
5. Valuation and fund administration.
6. Corporate action tracking, collections and reporting.
X. Constituent Subsidiary General Ledger (CSGL)
CSGL is an account maintained by SHCIL with RBI. CSGL services comprise of purchase
and sale of government securities, custody, participation in bidding, value free transfers,
benefits and redemptions collection and reporting.
23

XI. Pension Fund Administration
SHCIL offers an array of related services that include design, development and maintenance
of a customised Pension Fund Software, Pension Fund Operations and Accounting, Custodial,
Depository and Constituent SGL services for investments made by the Pension Fund Trusts.
XII. Document Management Services
StockHolding Document Management Services Limited is a wholly owned subsidiary of
SHCIL, incorporated in 2006.
StockHolding DMS provides the following products and services:
1. Electronic Document Management Solution (EDMS) for archiving, managing,
indexing and retrieval of documents. The suite includes tools for digitization,
scanning, OCR, image conversions, electronic workflow management, document
archival, advanced search and email data management.
2. Record Management System (RMS) for storing, tracking and retrieving required
records in an organised manner. The records from each client are grouped into dockets
with each docket having a unique serial number for identification.
3. Workflow Management Solution (WMS) automates the flow of files within an
organisation till the file completes its lifecycle thereby increasing efficiency.
4. StockHolding CRM is a customer relationship management software for companies of
all sizes. The solution architecture allows companies to more easily customize and
integrate customer-facing business processes in order to build and maintain more
profitable relationships.
5. Virtual Data Room is a secure online service to store and share – critical documents,
allowing only those with a password-protected access code to see your data.
6. Document destruction services ensure that the confidential information of a company
is disposed off securely, safely and responsibly.
7. Property asset management includes revenue mapping, recording complete histories
of all immovable assets including acquisitions, allotments, transfers.
24

PRACTICAL EXPERIENCE AT SHCIL
25

I. Week 1
The week started off with training in the various retail products and services offered by
SHCIL at its Indore Branch. The training involved documentation (Application Forms, ID
and Address proofs, Cheque / Cash Handling), sales pitch to clients and back office
operations (Database handling).
Dewan Housing Finance Limited NCD
The secured redeemable non-convertible debentures were issued on May 22, 2018 at a face
value of Rs. 1000 per debenture for an amount of Rs. 3000 Crores (With an option to retain
oversubscription upto Rs. 9000 Crores). The Prospectus was issued on May 14, 2018. The
issuance mode was physical as well as Demat. The issue was rated CARE AAA / BWR AAA.
Investor categories were as follows:
1. Category I (Institutional Investors) – Public financial institutions, provident funds,
pension funds, mutual funds, scheduled commercial banks etc.
2. Category II (Non-Institutional Investors) – Co-operative banks, rural banks, scientific
and / or industrial research organisations etc.
3. Category III (High Net-Worth Individuals) – Resident Indian individuals / HUF
through karta applying for an amount aggregating to above Rs. 10 Lakhs.
4. Category IV (Retail Individual Investors) – Resident Indian individuals / HUF
through karta applying for an amount aggregating upto and including Rs. 10 Lakhs.
The debentures were issued in 7 series with fixed and floating interest rates compounded
monthly or annually with a tenure of 3 years to 10 years.
ICICI Prudential Life Insurance (Industry Training)
The training was conducted on May 25, 2018. The ICICI representatives introduced the
following plans:
1. iProtect Smart (Term Life Insurance Plan) –
i. Maximum policy term upto the age of 75 years.
ii. Insured amount upto 20 times that of the income.
iii. Added Benefits– Terminal Illness, Death, Permanent Disability and Critical Illness
(34 Diseases defined), Accidental Death Benefit (upto Rs. 2 Crores).
iv. Flexible Payout – Lumpsum, monthly, lumpsum plus income and increasing
income.
v. Documents Required – Photo, PAN Card, AADHAAR Card, Age and Address
proofs and ITR forms (previous 3 years).
2. Future Perfect (Savings Plan) –
i. Guaranteed returns with tax benefits on maturity.
ii. Protection amount of upto 10 times that of the income.
26

iii. Complete financial protection with a life cover.
iv. Revisionary and Terminal bonuses declared based on the performance of the
company in a financial year.
v. Documents Required – Photo, PAN Card, AADHAAR Card, Age and Address
proofs and ITR forms (previous 3 years).
Other activities done through the week include – Account details modification and mobile
trading app promotion.
II. Week 2
The week included activities – Account details modification, dues collection and mobile
Mock Trading (Software – ODIN Client)
The training was conducted on June 2, 2018. A virtual scenario using realtime market trends
was used. The following procedures were introduced:
1. Buy / Sell orders on BSE and NSE on Delivery and Margin.
2. Checking executed trade summaries for order status.
3. Client wise trade summaries.
4. Market rate fluctuation analysis.
5. Trade tips on various stocks from the central hub.
III. Week 3
SSL Trading App for SmartPhone
A secured trading platform for Android and iOS devices. Facilities offered:
1. Secure login using Trading ID (UCC) and client generated password.
2. Marketwatch on clients’ chosen stocks.
3. Buy / Sell orders at Delivery, Margin, BTST etc.
4. Order Book – Logs all the orders placed by the client during market hours.
5. Trade Book – Logs all the executed orders placed by the client during market hours.
6. Graphical montioring of the market.
7. Trade tips on various stocks from the central hub.
27

8. Funds and Stocks View in the client’s account.
9. Net Position during market hours.
10. Security / Contract details of Scrips.
28

IV. Week 4
TATA Mutual Funds (Industry Training)
The training was conducted on June 11, 2018. The following funds were introduced by the
representatives:
1. Consumer Fund – A sectoral scheme with investments in equity / equity related
instruments in consumption oriented sectors (Automobiles, Media & Entertainment,
Consumer Durables & FMCG, and Textiles). It is an open ended fund. Features:
i. No entry load. Exit load 1% if redeemed on or before 18 months from allotment.
ii. Minimum purchase of Rs. 5000 (and in multiples of Rs. 1 thereafter).
iii. Minimum additional purchase of Rs. 1000 (and in multiples of Rs. 1 thereafter).
iv. Minimum redemption amount Rs. 500 or 50 units.
v. Minimum SIP installment amount Rs. 500 (monthly).
vi. Monthly / Quarterly SWP with minimum withdrawal amount Rs. 500.
vii. Indicative Asset Allocation Pattern –
a) Equity / Equity Related Instruments – 80% to 100%, High Risk.
b) Debt / Money Market Instruments – 0% to 20%, Low or Medium Risk.
2. Equity P / E Fund – A diversified scheme with investments in companies with lower
rolling P / E Ratio (annual) as compared to the BSE rolling P / E Ratio (annual). It is
an open ended fund. Features:
i. No entry load. Exit load 1% if redeemed on or before 18 months from allotment.
a) 70% to 100% in Equity / Equity Related Instruments.
b) Upto 20% in Debt / Money Market Instruments.
3. Value Fund Series I – A close ended scheme similar to Equity P / E Fund with no
entry and exit load. Minimum purchase of Rs. 5000 (and in multiples of Rs. 1
thereafter).
4. Digital India Fund - A sectoral scheme with investments in equity / equity related
instruments in the Indian Information Technology (IT) Sector. It is an open ended
fund. Features:
i. No entry load. Exit load 0.25% if redeemed on or before 3 months from allotment.
29

a) Equity / Equity Related Instruments – 80% to 100%, High Risk.
b) Debt / Money Market Instruments – 0% to 20%, Low or Medium Risk.
5. Retirement Savings Fund – An open ended scheme with a carefully structured suite of
plans for investors planning for retirement. Features:
i. No entry load. Exit load 1% if redeemed before 60 years of age.
vii. Asset Allocation Plans – Three plans are offered:
a) Progressive – Equity (85% to 100%), Debt (0% to 15%) and Other (0% to
10%).
b) Moderate – Equity (65% to 85%), Debt (15% to 35%) and Other (0% to 10%).
c) Conservative - Equity (0% to 30%), Debt (70% to 100%) and Other (0% to
10%).
IDFC Mutual Funds (Industry Training)
representatives:
1. Dynamic Equity Fund – An open ended scheme which invests dynamically between
equity and debt. Features:
i. Exit load 1% if redeemed within 12 months after date of allotment.
ii. Minimum purchase of Rs. 5000 (and any amount thereafter).
iii. Asset Allocation – Gross equity (67.62%), debt (32.38%).
iv. Market Cap Distribution – Large Cap (65.2%), Mid and Small Cap (34.8%).
v. Monthly SIP.
2. Focused Equity Fund – An open ended scheme investing in maximum 30 stocks with
multi cap focus. Features:
iii. Monthly SIP (minimum purchase amount Rs. 1000).
30

3. Multi Cap Fund – An open ended scheme which focuses on investing across large
cap, mid cap and smal cap stocks. Features:
iii. Monthly SIP (minimum purchase amount Rs. 1000).
4. Sterling Value Fund – An open ended scheme following the value investment strategy.
Features:
iii. Monthly SIP.
5. Tax Advantage (ELSS) Fund – An open ended scheme with a statutory lock in of 3
years and tax benefit. Features:
i. No exit load.
ii. Minimum purchase of Rs. 500.
iii. Monthly SIP.
V. Week 5
Creation and modification of Client Database based on – Active / Inactive, Suspended, App
Registration Status, City and Account Details.
VI. Week 6
Creation of database of IT Companies situated in Indore (Approx. 170 companies).
ICICI Mutual Funds (Industry Training)
representatives:
1. Balanced Advantage Fund – An open ended scheme which focuses on equity
derivative strategies, arbitrage opportunities and pure equity investments. Features:
i. No entry load. Exit load 1% if redeemed within 18 months after date of allotment.
31

iv. Minimum redemption of Rs. 500 or all units where amount is less than Rs. 500.
v. SIP, SWP, STP.
2. Multi-Asset Fund – An open ended scheme which focuses on investing across various
asset categories (Equity, debt, gold / gold ETF etc). Features:
v. SIP, SWP, STP.
3. Pharma Healthcare and Diagnostics Fund – An open ended scheme with focus on the
pharmaceutical and complementary sectors. Features:
v. SIP, SWP, STP.
4. Value Discovery Fund – An open ended scheme following a value investment
strategy. Features:
v. SIP, SWP, STP.
Shriram Transport Finance Corporation NCD
The secured redeemable non-convertible debentures were issued on June 27, 2018 at a face
value of Rs. 1000 per debenture for an amount of Rs. 5000 Crores. The Prospectus was
issued on May 14, 2018. The issuance mode was physical as well as Demat. The issue was
rated CRISIL AA+ / IND AA+.
Investor categories were as follows:
1. Category I (Institutional Investors) – Public financial institutions, provident funds,
pension funds, mutual funds, scheduled commercial banks etc.
2. Category II (Non-Institutional Investors) – Co-operative banks, rural banks, scientific
and / or industrial research organisations etc.
3. Category III (High Net-Worth Individuals) – Resident Indian individuals / HUF
through karta applying for an amount aggregating to above Rs. 10 Lakhs.
32

4. Category IV (Retail Individual Investors) – Resident Indian individuals / HUF
through karta applying for an amount aggregating upto and including Rs. 10 Lakhs.
The debentures were issued in 7 series with fixed and floating interest rates compounded
monthly, annually and cumulatively with a tenor of 3 years to 10 years.
TATA Mutual Funds NFO (Value Fund Series I) Client Meet
The meet was conducted on June 30, 2018. Existing clients of SHCIL (Indore Branch) were
invited to the meet. TATA Mutual Funds representatives held a presentation of the Value Fund
Series I. An interactive Q&A session was held.
VII. Week 7
Bajaj Life Insurance (Industry Training)
The training was conducted on July 3, 2018. The following funds were introduced by the
representatives:
1. Health Guard – Personal health insurance policy which provides individual as well as
floater sum insured. Features:
i. Two plans offered – Silver (Rs. 1.5 / 2 Lakhs) and Gold (Rs. 3 / 4 / 5 / 7.5 / 10 / 15
/ 20 / 25 / 30 / 35 / 40 / 45 / 50 Lakhs).
ii. Entry age 18-65 years while for dependent children / grandchildren 3 months-3
years.
iii. Various discounts (Family, Employee, Long term).
iv. Policy can be opted for 1, 2 or 3 years.
2. Global Personal Guard – Accidental insurance policy which provides two sections
under the policy (Base cover and optional cover). Features:
i. Base Cover – Death, Permanent Total Disability and Permanent Partial Disability.
ii. Optional Cover – Accidental Hospitalization Expenses, Adventure Sports Benefit,
Air Ambulance Cover, Children Education Benefit, Coma due to Accidental
Injury etc.
iii. Policy can be opted for 1, 2 or 3 years.
VIII. Experiential Learnings
The internship at SHCIL offered me an opportunity to work with a variety of financial
products and services in conjuntion with hands-on interaction with clients. The first week
focused on familiarizing myself with the products and services portfolio of SHCIL in order to
establish a foundation that I could work with.
As majority of the clientale at SHCIL belongs to the higher age groups, the importance of
well classified documentation became apparent immediately due to the way most of the
operations conducted by the clients when they came to the office. I observed that most clients
33

preferred a hands-on approach to any financial transactions conducted through their accounts
at the company, despite the proliferation of electronical services which help the same.
Immediate scanning of documents, photocopies etc., were necessary in order to maintain
exact records of the clients’ accounts.
A major rush was observed whenever any new IPOs or NCDs or Bonds were issued by
reputed orgnisations. The NCD offers were the most subscribed products because, the
customers are always seeking to invest in various financial products as long as they could
ensure a certain level of returns with the minimal risk taken.
A major aspect of the internship was the introduction of the SSL Trading App for SmartPhone
and activation of client IDs for the same. This application allowed clients to monitor the
market in real-time and make transactions at their own discretion with the added advantage of
a reduction in the broker fee [down to Rs. 5 from Rs. 35 (for every transaction in the share
market via the office)]. The job of the interns was to introduce the app to the clients, make
them aware of the advantages the app offered and set-up a meeting (via a phone call) to have
the clients sign a declaration form stating that the client had received the relevant information
was interested in activating his / her client ID.
Due to the number of clients being around 1300, initially, I and my fellow intern decided to
segregate the clients based on various regions in the city, starting with areas where we live.
This approach soon proved futile after the trading head at SHCIL Mr. Vikas Sharma, pointed
out the target of activation of 800 client IDs in 3 months while, we had been able to provide
only 7-8 IDs in the first couple of weeks. Mr. Vikas provided us with the database of the
clients which contained the activated as well as pending client IDs.
We changed our approach and first started modifying the database provided, in order to sort
the data on the basis of their addresses, the status of their accounts and their holdings status.
It was observed that approximately 570 clients were located in Indore while, the rest were
situated in places like Khandwa, Ratlam, Ujjain etc. Nearly 240 of the total accounts were
permanently shut-down due to various reasons. As the database was being modified and
updated on a daily basis, we found that a majority of the clients were either unreachable or
were not interested in signing up for additional services attributing to the high charges
assigned by SHCIL and the decrease in frequency of transactions due to the volatility of the
market. Also due to the higher age group of the clients, most were reluctant to sign any
declarations despite the fact that the form only enlisted the information that client had been
made aware about the app. Another reason why we observed a slow response was the trust
factor. The clients placed their trust in the existing staff at SHCIL and were concerned that
that, the interns might not be upto the tasks. This led to the inference that the target of 800
activations was impossible in the given timeframe, which was seconded by Mr. Vikas. It
tooks nearly two weeks to complete the database and generate more signed declarations with
a final contribution of 20-25 forms.
34

In order to attract clients to the advantages of the trading app, I focused on personal selling
where:
1. The client was called and checked for his availability in order to secure an
appointment.
2. A face-to-face interaction with the client was set-up and a demonstration of the app
was done in order to highlight its features.
3. Emphasis was placed on the nature of the declaration i.e., the clients were informed
upfront that the form implied that the client in question had been made aware of the
app and its facilities and thus, was interested in activating his / her client ID for the
same. The clients could choose to activate their IDs as per their discretion in the
future.
4. The clients who were not available during the duration of the internship were marked
as pending and the information was provided to Mr. Vikas for further consideration.
It took nearly two weeks to complete the database and the final contribution was 20-25
signed declarations.
We also created an IT Companies database where potential clients were identified. The
database consisted of contact details (Phone Numbers, Email IDs and Websites) and
addresses of the companies with offices situated in Indore.
Simultaneously, I also gained a deeper understanding into the volatility of the share market
under the tutelage of Mr. Vikas. I learnt how various factors in the economy affected the
performance of the listed companies and major approaches to investing in shares (which
centred around the risk tolerance of an individual):
1. Individuals with high risk tolerance should focus on intraday and margin trading, and
invest in various performing small and mid-cap companies alongwith some large cap
companies for adding a certain level of stability to the portfolio.
2. Individuals with low risk tolerance should focus on a long term approach and invest in
shares after in-depth analysis, and in segregated amounts rather than lumpsum.
Also, I understood the importance of planning the travel routes in the field where, timing
was of essence and contacting clients in an efficient manner was necessary.
35

EMPIRICAL RESEARCH STRATEGY AND METHODOLOGY
36

EMPIRICAL STRATEGY AND METHODOLOGY
I. Aims and Objectives
The aim of the present research is to analyse the investment preferences of customers. The
objective is to determine the various trends of investments on the basis of age and income of
the customers.
II. Methodology
The data has been collected from customers using a survey (questionnaire). This primary data
has been analysed using charts and statistical tests.
III. Validity and Reliability
The research is valid beacuse of the accuracy of the analytical results. The reliability of the
research is established because of the consistency of the analytical results as compared to the
trends observed in the market.
IV. Limitations
Since the data is collected through a survey, the accuracy of the reponses is determined by the
customers’ knowledge of the survey topic. This may lead to inconsistent results in the
analysis.
37

ANALYSES
I. Questionnaire
INVESTMENT PREFERENCES
A survey of customer preferences for the products and services provided by Stock Holding
Corporation of India Limited (SHCIL)
Questions marked with * are mandatory
ABOUT YOU
1. Your Name
_____________________
2. How to contact you? (Please enter your Email-ID and contact number)
______________________________________________________
3. What is your age?*
(a) 18-28
(b) 29-39
(c) 40-50
(d) 50 & Above
4. What is your income?*
(a) Below 2.5 Lakhs
(b) 2.5 Lakhs – 5 Lakhs
(c) 5 Lakhs – 10 Lakhs
(d) 10 Lakhs & Above
ABOUT SHCIL
1. Do you know about SHCIL?*
(a) Yes
(b) No
2. How did you learn about SHCIL?*
(a) Don’t know anything about SHCIL
(b) Internet
(c) Magazine
(d) Newspaper
(e) From a friend or family
(f) From agents
(g) Other:______________
INVESTMENT DETAILS
1. Do you think investing in the market (in any form) is a good choice?*
(a) Yes
(b) No, never going to
(c) Maybe in the future
(d) Not sure
2. Do you have a Demat Account?*
(a) Yes
(b) No, don’t want one
(d) What is that?
39

ANALYSES
3. Do you invest in Stocks?*
(a) Yes
(d) What is that?
4. Do you invest in Mutual Funds?*
(a) Yes
(d) What is that?
5. Do you have a National Pension Scheme Account?*
(a) Yes
(b) No, don’t want one
(d) What is that?
6. Do you invest in Corporate Fixed Deposits?*
(a) Yes
(d) What is that?
7. Do you invest in Bonds?*
(a) Yes
(d) What is that?
8. What is your preferred form of investment?* (Tick all that apply)
(a) Bank Fixed Deposits
(b) Gold, Silver & Other Precious Metals
(c) Real Estate
(d) Automobiles
(e) Stocks
(f) Mutual Funds
(g) Bonds
(h) Provident Fund
(i) NPS
(j) Corporate Fixed Deposits
(k) None
(l) Other:______________
40

ANALYSES
9. How do you invest?* (Tick all that apply)
(a) Make my own choices
(b) Take advice from friends and family members
(c) Take advice from office colleagues
(d) Take advice from investment agents
(e) Take advice from your tax consultant
(f) Just Bank Fixed Deposits and precious metals are enough
(g) Let the amount accumulate in my account
(h) Other:______________
A total of 214 responses were collected in the survey. The data was analysed for any errors
such as missing answers to mandatory questions, invalid answers etc., in order to maintain
the accuracy of the analysis. For this report only 202 responses were considered valid.
41

ANALYSES
II. Personal Information
The following charts represent the age and income distribution of the participants.
42
Age
18-28 29-39 40-50 50 & Above
Income
Below 2.5 Lakhs 2.5 Lakhs – 5 Lakhs
5 lakhs – 10 Lakhs 10 Lakhs & Above

ANALYSES
Statistical Analysis
H0 : Income is independent of Age
Ha : Income is dependent on Age
Since the χ2
calculated is greater than χ2
critical, the null hypothesis (H0) is rejected. Thus, for the
given survey, Income is dependent on Age (Ha is accepted).
43
Below2.5 Lakhs 2.5 Lakhs – 5 Lakhs 5 Lakhs – 10 Lakhs 10 Lakhs & Above
0
5
10
15
20
25
30
35
40
Income vs Age
18-28
29-39
40-50
50 & Above
Income
No.ofResponses
INCOME vs AGE 18-28 29-39 40-50 50 & Above
Below 2.5 Lakhs 21 1 1 0
2.5 Lakhs – 5 Lakhs 17 21 4 3
5 Lakhs – 10 Lakhs 4 32 32 7
10 Lakhs & Above 4 4 12 39
Alpha 0.05
df 9
P-value 1.4001E-32
Test Statistic 173.091191
Critical Value 16.9189776
Test of Independence (Chi-Square)

ANALYSES
III. About SHCIL
The following charts represent the participants’ knowledge about SHCIL.
44
Do you know about SHCIL?
Yes No
How did you learn about SHCIL?
don’t know internet magazine newspaper
friend/family agent other

ANALYSES
45
Yes No
0
5
10
15
20
25
30
35
40
45
Age vs About SHCIL I
18-28
29-39
40-50
50 & Above
No.ofResponses
Yes No
0
10
20
30
40
50
60
70
Income vs About SHCIL I
Below 2.5 Lakhs
2.5 Lakhs – 5 Lakhs
5 Lakhs – 10 Lakhs
10 Lakhs & Above
No.ofResponses
18-28 29-39 40-50 50 & Above
Yes 27 40 40 44
No 19 18 9 5
Do you know about
SHCIL?
Below 2.5 Lakhs 2.5 Lakhs – 5 Lakhs 5 Lakhs – 10 Lakhs 10 Lakhs &Above
Yes 8 24 64 8
No 15 21 11 15
Do you know about
SHCIL?

ANALYSES
46
Don’tknow
anything
aboutSHCIL
Internet
M
agazine
Newspaper
From
afriend
orfam
ily
From
agents
Other
0
5
10
15
20
25
30
Age vs About SHCIL II
18-28
29-39
40-50
50 & Above
No.ofResponses
18-28 29-39 40-50 50 & Above
26 16 5 2
Internet 11 13 7 9
Magazine 0 1 0 0
Newspaper 0 2 2 2
From a friend or family 6 14 12 24
From agents 0 10 20 10
Other 3 2 3 2
How did you learn about
SHCIL?
Don’t know anything
about SHCIL

ANALYSES
47
Don’t know
anything
about SHCIL
Internet
M
agazine
Newspaper
From
afriend
orfam
ily
From
agents
Other
0
5
10
15
20
25
Income vs About SHCIL II
Below 2.5 Lakhs
10 Lakhs & Above
No.ofResponses
14 19 9 7
Internet 4 12 12 12
Magazine 0 1 0 0
Newspaper 0 2 3 1
From a friend or family 5 5 23 23
From agents 0 4 23 13
Other 0 2 5 3
How did you learn
about SHCIL?
Don’t know anything
about SHCIL

ANALYSES
IV. Investment Details
The following charts represent the participants’ investment preferences.
48
Do you think investing in the market is a good choice?
yes no maybe not sure
18-28 29-39 40-50 50 & Above
Yes 22 21 23 22
No, never going to 1 0 2 2
Maybe in the future 4 33 1 2
Not sure 19 4 23 23
Do you think investing in
the market (in any form)
is a good choice?

ANALYSES
(Aforementioned calculations are done after clubbing the “Maybe”, “No” and “What” categories)
H0 : Investment in the market, is independent of Age
Ha : Investment in the market, is dependent on Age
Since the χ2
calculated is smaller than χ2
critical, the null hypothesis (H0) is accepted. Thus, for the
given survey, Investment in the market, is independent of Age.
49
Yes No, never going to Maybe in the future Not sure
0
5
10
15
20
25
30
35
Age vs Investment Details I
18-28
29-39
40-50
50 & Above
Do you think investing in the market (in any form) is a good choice?
No.ofResponses
Yes 9 15 34 30
Not sure 13 26 36 23
Do you think investing
in the market (in any
form) is a good choice?
Alpha 0.05
df 3
P-value 0.59784811

ANALYSES
H0 : Investment in the market is independent of Income
Ha : Investment in the market is dependent on Income
Since the χ2
given survey, Investment in the market is independent of Income.
50
Yes No, never going to Maybe in the future Not sure
0
5
10
15
20
25
30
35
40
Income vs Investment Details I
Below 2.5 Lakhs
10 Lakhs & Above
Do you think investing in the market (in any form) is a good choice?
No.ofResponses
Alpha 0.05
df 3
P-value 0.32491502

ANALYSES
51
Do you have a DEMAT Account?
yes no maybe what’s that?
Yes No, don’t want one Maybe in the future What is that?
0
5
10
15
20
25
Age vs Investment Details II
18-28
29-39
40-50
50 & Above
No.ofResponses
18-28 29-39 40-50 50 & Above
Yes 17 21 25 18
No, don’t want one 5 16 8 13
What is that? 10 0 1 0
Do you have a DEMAT
Account?

ANALYSES
H0 : Having a DEMAT Account is independent of Age
Ha : Having a DEMAT Account is dependent on Age
Since the χ2
given survey, Having a DEMAT Account is independent of Age.
52
0
5
10
15
20
25
30
35
Income vs Investment Details II
Below 2.5 Lakhs
10 Lakhs & Above
No.ofResponses
Yes 6 14 33 28
Do you have a DEMAT
Account?
Alpha 0.05
df 3
P-value 0.35906945

ANALYSES
H0 : Having a DEMAT Account is independent of Income
Ha : Having a DEMAT Account is dependent on Income
Since the χ2
given survey, Having a DEMAT Account is independent of Income.
53
Alpha 0.05
df 3
P-value 0.15781283

ANALYSES
54
Do you invest in stocks?
Yes No, never going to Maybe in the future What is that?
0
5
10
15
20
25
30
Age vs Investment Details III
18-28
29-39
40-50
50 & Above
Do you invest in Stocks?
No.ofResponses
Do you invest in Stocks? 18-28 29-39 40-50 50 & Above
Yes 10 9 7 10

ANALYSES
H0 : Investment in Stocks is independent of Age
Ha : Investment in Stocks is dependent on Age
Since the χ2
given survey, Investment in Stocks is independent of Age.
55
0
5
10
15
20
25
30
35
40
45
Income vs Investment Details III
Below 2.5 Lakhs
10 Lakhs & Above
Do you invest in Stocks?
No.ofResponses
Do you invest in Stocks? Below 2.5 Lakhs 2.5 Lakhs – 5 Lakhs 5 Lakhs – 10 Lakhs 10 Lakhs &Above
Yes 4 6 10 16
Alpha 0.05
df 3
P-value 0.74011243

ANALYSES
H0 : Investment in Stocks is independent of Income
Ha : Investment in Stocks is dependent on Income
Since the χ2
given survey, Investment in Stocks, is independent of Income.
56
Alpha 0.05
df 3
P-value 0.16213936

ANALYSES
57
Do you invest in Mutual Funds?
18-28 29-39 40-50 50 & Above
Yes 19 36 39 45
Do you invest in Mutual
Funds?
0
5
10
15
20
25
30
35
40
45
Age vs Investment Details IV
18-28
29-39
40-50
50 & Above
No.ofResponses

ANALYSES
H0 : Investment in Mutual Funds is independent of Age
Ha : Investment in Mutual Funds is dependent on Age
Since the χ2
given survey, Investment in Mutual Funds, is dependent on Age (Ha is accepted).
58
0
10
20
30
40
50
60
Income vs Investment Details IV
Below 2.5 Lakhs
10 Lakhs & Above
No.ofResponses
Yes 7 21 58 53
Do you invest in Mutual
Funds?
Alpha 0.05
df 3
P-value 4.7386E-07

ANALYSES
H0 : Investment in Mutual Funds is independent of Income
Ha : Investment in Mutual Funds is dependent on Income
Since the χ2
given survey, Investment in Mutual Funds, is dependent on Income (Ha is accepted).
59
Alpha 0.05
df 3
P-value 7.3881E-09

ANALYSES
60
Do you have a NPS Account?
0
5
10
15
20
25
30
35
40
45
Age vs Investment Details V
18-28
29-39
40-50
50 & Above
Do you have a National Pension Scheme Account?
No.ofResponses
18-28 29-39 40-50 50 & Above
Yes 14 42 37 30
Do you have a National
Pension Scheme
Account?

ANALYSES
H0 : Having a NPS Account is independent of Age
Ha : Having a NPS Account is dependent on Age
Since the χ2
given survey, Having a NPS Account is dependent on Age (Ha is accepted).
61
0
10
20
30
40
50
60
Income vs Investment Details V
Below 2.5 Lakhs
10 Lakhs & Above
Do you have a National Pension Scheme Account?
No.ofResponses
Yes 4 24 57 38
Do you have a National
Pension Scheme
Account?
Alpha 0.05
df 3
P-value 1.184E-05

ANALYSES
H0 : Having a NPS Account is independent of Income
Ha : Having a NPS Account is dependent on Income
Since the χ2
given survey, Having a NPS Account is dependent on Income (Ha is accepted).
62
Alpha 0.05
df 3
P-value 6.3272E-06

ANALYSES
63
Do you invest in Corporate FDs?
0
5
10
15
20
25
30
35
40
45
Age vs Investment Details VI
18-28
29-39
40-50
50 & Above
Do you invest in Corporate Fixed Deposits?
No.ofResponses
18-28 29-39 40-50 50 & Above
Yes 4 4 6 10
Do you invest in
Corporate Fixed
Deposits?

ANALYSES
H0 : Investment in Corporate Fixed Deposits is independent of Age
Ha : Investment in Corporate Fixed Deposits is dependent on Age
Since the χ2
given survey, Investment in Corporate Fixed Deposits is independent of Age.
64
0
10
20
30
40
50
60
Income vs Investment Details VI
Below 2.5 Lakhs
10 Lakhs & Above
Do you invest in Corporate Fixed Deposits?
No.ofResponses
Yes 2 2 8 12
Do you invest in
Corporate Fixed
Deposits?
Alpha 0.05
df 3
P-value 0.15561074

ANALYSES
H0 : Investment in Corporate Fixed Deposits is independent of Income
Ha : Investment in Corporate Fixed Deposits is dependent on Income
Since the χ2
given survey, Investment in Corporate Fixed Deposits, is independent of Income.
65
Alpha 0.05
df 3
P-value 0.08077221

ANALYSES
66
Do you invest in Bonds?
0
5
10
15
20
25
30
35
40
Age vs Investment Details VII
18-28
29-39
40-50
50 & Above
No.ofResponses
Do you invest in Bonds? 18-28 29-39 40-50 50 & Above
Yes 11 19 23 39

ANALYSES
H0 : Investment in Bonds is independent of Age
Ha : Investment in Bonds is dependent on Age
Since the χ2
given survey, Investment in Bonds is dependent on Age (Ha is accepted).
67
0
5
10
15
20
25
30
35
40
45
Income vs Investment Details VII
Below 2.5 Lakhs
10 Lakhs & Above
No.ofResponses
Do you invest in Bonds? Below 2.5 Lakhs 2.5 Lakhs – 5 Lakhs 5 Lakhs – 10 Lakhs 10 Lakhs &Above
Yes 3 11 36 42
Alpha 0.05
df 3
P-value 9.8218E-08

ANALYSES
H0 : Investment in Bonds is independent of Income
Ha : Investment in Bonds is dependent on Income
Since the χ2
given survey, Investment in Bonds, is dependent on Income (Ha is accepted).
68
Alpha 0.05
df 3
P-value 2.2949E-07

ANALYSES
69
bank fd
g,s,pm
real e
auto
stocks
mf
bond
pf
nps
corporate fd
none
other
0 20 40 60 80 100 120 140 160 180
163
29
36
2
26
133
78
97
100
15
0
1
What is your preferred form of investment?
No. of Responses
own choice
friend/family
office
agent
tax cons
just fd and gold
amount accum
other
0 20 40 60 80 100 120 140
126
59
58
110
80
9
9
0
How do you invest?
No. of Responses

CONCLUSION
I. SHCIL : Current Scenario
SHCIL is India’s first and largest depository participant and custodian of securities. With a
robust infrastructure for the variety of products and services the company offers its
customers, SHCIL has largely been successful in following its mission statement.
With the rapid rise of technology and electronic transactions (due to the development of
security algorithms at a breakneck pace), the company faces stiff competition from firms like
Zerodha, Sharekhan, ICICI Direct Demat etc.
The services offered by various depository participants are almost as good as those offered by
SHCIL. Two drawbacks that are a big threat to the company’s market share are the relatively
higher charges for its services and the slower adoption of mobile technology for the services.
SHCIL should focus on expanding its mobile technology department and increasing the pace
of development in order to stay ahead of its competition.
This research offers no new insights into how SHCIL can work towards rectifying the
aformentioned issues but, it offers an analysis of the customers’ investment preferences in the
current market scenario.
II. Research Results
The survey data was analysed to determine investment trends based on the age and income of
the respondents.
Dependencies Observed
Age Income
Investing Choice - -
DEMAT - -
Stocks - -
Mutual Funds Dependent Dependent
NPS Dependent Dependent
Corporate FDs - -
Bonds Dependent Dependent
1. Income vs Age – The respondents are divided nearly equally into the four age groups
while, a majority of the respondents belong to the “5 Lakhs – 10 Lakhs” Income
group and the least belong to the “Below 2.5 Lakhs” Income group. As per statistical
analysis, it is observed that age and income are directly related i.e., as age of the
individual increases, the income increases as well.
71

CONCLUSION
2. About SHCIL – The respondents in the “50 & Above” Age group are the most
knowledgeable about SHCIL while, those in the “18-28” Age group are the least
knowledgeable. The major sources of knowledge are:
i. Friends / Family Members
ii. Internet, Newspaper
3. Investment in the Market – Nearly 44% of the respondents consider investing in the
market a good choice while, almost 2.5% of the respondents don’t think it’s a good
choice. The rest are either unsure or will invest in the future. As per statistical
analysis, investment in the market is independent of both, Age and Income i.e., nearly
equal number of respondents in all the Age groups are willing to invest in the market
and a majority of the respondents in the “5 Lakhs – 10 Lakhs” Income group are open
to investing in the market.
4. DEMAT Account – Nearly 40% of the respondents have a DEMAT Account while,
5.4% (approximately) of the respondents don’t know what a DEMAT Account is. As
per statistical analysis, having a DEMAT Account is independent of both, Age and
Income. The most number of DEMAT Accounts are held by the “40-50” Age group
while the least are held by the “18-28” Age group. The most number of DEMAT
Accounts are held by the “5 Lakhs – 10 Lakhs” Income group while the least are held
by the “Below 2.5 Lakhs” Income group.
5. Stocks – 49% of the respondents are not interested in investing in Stocks at present
while, 17.8% invest in stocks and nearly 4% don’t know what Stocks are. As per
statistical analysis, investment in stocks is independent of both, Age and Income. A
majority of the respondents who are willing to invest in Stocks belong to the “10
Lakhs & Above” group.
6. Mutual Funds – Nearly 69% of the respondents invest in Mutual Funds while, nearly
2% don’t know what Mutual Funds are. As per statistical analysis, investment in
Mutual Funds is dependent on both, Age and Income. A majority of the respondents
who invest in Mutual Funds belong to the “50 & Above” Age group while the
minority belongs to the “18-28” Age group. A majority of the respondents who invest
in Mutual Funds belong to the “5 Lakhs – 10 Lakhs” Income group while the minority
belongs to the “Below 2.5 Lakhs” Income group.
7. NPS Account – Nearly 61% of the respondents have a NPS Account while, nearly 2%
don’t. As per statistical analysis, having a NPS Account is dependent on both, Age
and Income. A majority of the account holders belong to the “29-39” Age group and
the “5 Lakhs – 10 Lakhs” Income group.
72

CONCLUSION
8. Corporate FD – 63% of the respondents are not interested in investing in Corporate
FDs at present while nearly 7% don’t know what Corporate FDs are. As per statistical
analysis, investment in Corporate FDs is independent of both, Age and Income. A
majority of the respondents who are willing to invest in Corporate FDs belong to the
“50 & Above” Age group and the “10 Lakhs & Above” Income group.
9. Bonds – Nearly 46% of the respondents invest in Bonds while 2.5% (approximately)
don’t know what bonds are. As per statistical analysis, investment in Bonds is
dependent on both, Age and Income. A majority of the respondents who are willing to
invest in Bonds belong to the “50 & Above” Age group and the “ 10 Lakhs & Above”
Income group.
10. It is observed that the following forms of Investment (ranked in descending order) are
most preferred:
i. Bank Fixed Deposits
ii. Mutual Funds
iii. National Pension Scheme
While the least preferred forms of Investment (ranked in descending order) are listed
below:
i. Automobiles
ii. Corporate Fixed Deposits
iii. Stocks
11. It is observed that the following methods of Investment (ranked in descending order)
are most preferred:
i. Make my own choices
ii. Take advice from investment agents
iii. Take advice from your tax consultant
While the least preferred methods of Investment (ranked in descending order) are
listed below:
i. Let the amount accumulate in my account
ii. Just Bank Fixed Deposits and precious metals are enough
III. Recommendations
SHCIL as a brand is not as well known as compared to the likes of Zerodha, Sharekhan etc. A
more focused strategy on creating brand awareness is needed.
Corporate FDs and Bonds are less preferred despite being safe forms of investment.
Therefore, the company should focus on increasing awaresness regarding these products in
order to invite more investments.
73

APPENDIX I. RESEARCH TERMS
1. Alternate Hypothesis – The opposite of null hypothesis which considers that the
observations have some sort of relation.
2. Chi-Square Test – A non-parametric test used to test statistical significance of
observations under a study.
3. Empirical Research – It is based on observed and measured phenomena and derives
knowledge from actual experience rather than from theory or belief.
4. Hypothesis – A proposed explanation for a phenomenon.
5. Null Hypothesis – A general statement that there is no relationship between two
measured phenomenon.
6. Primary Data – Primary data is data originated for the first time by the researcher
through direct efforts and experience, specifically for the purpose of addressing his
research problem. Also known as the first hand or raw data. Primary data collection is
quite expensive, as the research is conducted by the organization or agency itself,
which requires resources like investment and manpower. The data collection is under
direct control and supervision of the investigator.
The data can be collected through various methods like surveys, observations,
physical testing, mailed questionnaires, questionnaire filled and sent by enumerators,
personal interviews, telephonic interviews, focus groups, case studies, etc.
7. Research Methodology – It is the systematic, theoretical analysis of the methods
applied to a field of study. It comprises the theoretical analysis of the body of methods
and principles associated with a branch of knowledge. A methodology does not set out
to provide solutions – it is, therefore, not the same as a method. Instead, a
methodology offers the theoretical underpinning for understanding which method, set
of methods, or best practices can be applied to specific case, for example, to calculate
a specific result.
8. Research Strategy – It is a step-by-step plan of action that gives direction to thoughts
and efforts, enabling the research to be conducted systematically and on schedule to
produce quality results and detailed reporting.
9. Secondary Data – Secondary data implies second-hand information which is already
collected and recorded by any person other than the user for a purpose, not relating to
the current research problem. It is the readily available form of data collected from
various sources like censuses, government publications, internal records of the
organization, reports, books, journal articles, websites and so on.
Secondary data offer several advantages as it is easily available, saves time and cost
of the researcher. But there are some disadvantages associated with this, as the data is
gathered for the purposes other than the problem in mind, so the usefulness of the data
may be limited in a number of ways like relevance and accuracy. Moreover, the
objective and the method adopted for acquiring data may not be suitable to the current
situation. Therefore, before using secondary data, these factors should be kept in
mind.
75

APPENDIX II. FINANCIAL TERMS
1. Allotment – The allocation of shares granted to a participating underwriting firm
during an IPO. Remaining surpluses go to other firms that have won the bid for the
right to sell the remaining IPO shares. It is also a situation when new shares are issued
and allocated to either a new or existing shareholder.
2. Beneficiary – An individual who is eligible to receive distributions from a trust, will
or life insurance policy. Beneficiaries are either named specifically in these
documents or have met the stipulations that make them eligible for whatever
distribution is specified.
3. Bond – It is a debt security, under which the issuer owes the holders a debt and
(depending on the terms of the bond) is obliged to pay them interest (the coupon)
and / or to repay the principal at a later date, termed the maturity date.
4. Broker – An individual or firm that charges a fee or commission for executing buy
and sell orders submitted by an investor.
5. Clearing Member – A member of an exchange clearing-house responsible for the
financial commitments of customers that clear through their firm.
6. Collateral – A property or asset that a borrower offers as a way for a lender to secure
the loan. If the borrower stops making the promised loan payments, the lender can
seize the collateral to recoup its losses.
7. Custodian – A financial institution that holds customers’ securities for safekeeping so
as to minimize the risk of their theft or loss. A custodian holds securities and other
assets in electronic or physical form.
8. Debt - It is an amount of money borrowed by one party from another. Debt is used by
many corporations and individuals as a method of making large purchases that they
could not afford under normal circumstances. A debt arrangement gives the borrowing
party permission to borrow money under the condition that it is to be paid back at a
later date, usually with interest.
9. Debenture – A debt instrument that is not secured in physical assets or collateral. It is
a common form of long-term loan that is taken out by a corporation. It is repayable on
a fixed date and pays a fixed rate of interest.
10. Debt Issue – It is a fixed corporate or government obligation, such as a bond or
debenture. A debt issue is a financial obligation that allows the issuer to raise funds by
promising to repay the lender at a certain point in the future and in accordance with
the terms of the contract. Debt issues include notes, bonds, certificates, mortgages,
leases or other agreements between the issuer (the borrower) and lender.
76

11. Dematerialisation – Process by which physical certificates of an investor are
converted to an equivalent number of securities in electronic form.
12. Depository – An institution that provides financial services to personal and business
investors. These services include holding securities and assistance in the trading of
securities.
13. Depository Participant – An agent of the depository which acts as an intermediary
between the depository and investors.
14. Equity – It is the difference between the value of the assets and the value of the
liabilities of something owed.
15. Exchange Traded Fund (ETF) – A marketable security that tracks an index, a
commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an
ETF trades like a common stock on stock exchange.
16. Fixed Deposit – A savings account or a certificate of deposit that pays a fixed rate of
interest until a given maturity date. Funds placed in a FD usually cannot be withdrawn
prior to maturity or they can perhaps only be withdrawn with advanced notice and/or
by having a penalty assessed.
17. Foreign Exchange Market – It is a global decentralized or over-the-counter (OTC)
market for the trading of currencies. This includes all aspects of buying, selling and
exchanging currencies at current or determined prices.
18. Indian Accounting Standards (IAS) – The accounting standard adopted by
companies in India and issue under the supervision of the Accounting Standards
Board (ASB). It became mandatorily applicable from April 1, 2016 for companies
with net worth of Rs. 500 Crores or more, and from April 1, 2017 for listed companies
and unlisted companies (net worth greater than or equal to Rs. 250 Crores but less
than Rs. 500 Crores).
19. IPO – When a private company or corporation raises investment capital by offering
its stock to the public for the first time.
20. Insurance – It is a means of protection from financial loss. It is a form of risk
management primarily used to hedge against the risk of a contingent, uncertain loss.
21. Interest Rate – It is the amount charged, expressed as a percentage of principal, by a
lender to a borrower for the use of assets. Interest rates are typically noted on an
annual basis, known as the annual percentage rate (APR). The assets borrowed could
include, cash, consumer goods, large assets, such as a vehicle or building.
77

22. ISIN – It is a unique 12 digit alpha-numeric identification number allotted for a
security. Equity full paid-up, Equity partly paid-up, Equity with differential voting /
dividend rights issued by the same issuer will have different ISINs.
23. Market Capitalization – The total dollar market value of a company’s outstanding
shares. It is calculated by multiplying a company’s shares outstanding by the current
market price per share.
24. MTF – Trading with borrowed funds / securities. It is essentially a leveraging
mechanism which enables investors to take exposure in the market over and above
what is possible with their own resources.
25. Mutual Fund – It is an investment vehicle made up of a pool of funds collected from
many investors for the purpose of investing in securities such as stocks, bonds, money
market instruments and similar assets. Mutual funds are operated by money managers,
who invest the fund's capital and attempt to produce capital gains and income for the
fund's investors.
26. Pension – A regular payment made by the state to people of or above the official
retirement age and to widows and some disabled people.
27. Portfolio – It is a grouping of financial assets such as stocks, bonds and cash
equivalents, as well as their funds counterparts, including mutual, exchange-traded
and closed funds. Portfolios are held directly by investors and / or managed by
financial professionals.
28. P / E Ratio – It is the ratio for valuing a company that measure its current share price
relative to its per-share earnings. It is also called the price multiple or the earnings
multiple.
29. Rematerialisation – The process of converting securities held in electronic form in a
demat account bank in physical certificate form.
30. Security – It is a tradable financial asset. The term commonly refers to any form of
financial instrument, but its legal definition varies by jurisdiction.
31. Stock – The stock of a corporation is constituted of the equity stock of its owners. A
single share of the stock represents fractional ownership of the corporation in
proportion to the total number of shares. In liquidation, the stock represents the
residual assets of the company that would be due to stockholders after discharge of all
senior claims such as secured and unsecured debt.
78

32. Stock Exchange - It is an exchange where stock brokers and traders can buy and sell
stocks (also called shares), bonds, and other securities. Stock exchanges may also
provide facilities for issue and redemption of securities and other financial
instruments and capital events including the payment of income and dividends.
Securities traded on a stock exchange include stock issued by listed companies, unit
trusts, derivatives, pooled investment products and bonds.
33. SIP – The investor invests small amounts of money over time to build a corpus. By
spreading out the investments over a duration of time, the purchase cost averages out.
This prevents investing a major portion of money at a market peak and helps in
maximising returns.
34. STP – A lumpsum investment which is spread out into various smaller investments
over a duration of time to average out the purchase cost and avoid the risk of investing
at a market peak. With an STP, the investor can invest a lumpsum in one scheme
(mostly a debt scheme) and transfer a fixed amount regularly to another scheme
(mostly an equity scheme).
35. SWP – Withdrawal of a fixed amount from a fund at regular intervals. Particularly
suited to retirees, who are looking for a fixxed flow of income.
36. Trading Member – A member of the derivatives exchange or derivatives segment of
a stock exchange who settles the trade in the clearing corporation or clearing house
through a clearing member.
37. UCC – A unique identification code linked to the PAN of an investor used by the
brokers and depositories in order to maintain client database.
79

APPENDIX III. SURVEY DATA
I. About You
1. What is your age?
18-28 46
29-39 58
40-50 49
50 & Above 49
2. What is your income?
Below 2.5 Lakhs 23
2.5 Lakhs – 5 Lakhs 45
5 Lakhs – 10 Lakhs 75
10 Lakhs & Above 59
II. About SHCIL
1. Do you know about SHCIL?
Yes 143
No 59
2. How did you learn about SHCIL?
Don’t know anything about SHCIL 49
Internet 40
Magazine 1
Newspaper 6
From a friend or family 56
From agents 40
Other 10
(The right column holds the number of responses per choice)
80

III. Investment Details
1. Do you think investing in the market (in any form) is a good choice?
Yes 88
No, never going to 5
Maybe in the future 11
Not sure 98
2. Do you have a DEMAT Account?
Yes 81
No, don’t want one 42
What is that? 11
3. Do you invest in Stocks?
Yes 36
What is that? 8
4. Do you invest in Mutual Funds?
Yes 139
What is that? 4
5. Do you have a National Pension Scheme Account?
Yes 123
No, don’t want one 16
What is that? 4
81

6. Do you invest in Corporate Fixed Deposits?
Yes 24
What is that? 14
7. Do you invest in Bonds?
Yes 92
What is that? 5
8. What is your preferred form of investment? (Tick all that apply)
Bank Fixed Deposits 163
Gold, Silver & Other Precious Metals 29
Real Estate 36
Automobiles 2
Stocks 26
Mutual Funds 133
Bonds 78
Provident Fund 97
NPS 100
Corporate Fixed Deposits 15
None 0
Other 1
9. How do you invest? (Tick all that apply)
Make my own choices 126
Take advice from friends and family members 59
Take advice from office colleagues 58
Take advice from investment agents 110
Take advice from your tax consultant 80
Just Bank Fixed Deposits and precious metals are
enough
9
Let the amount accumulate in my account 9
Other 0
82

REFERENCES
About SHCIL (2018), Retrieved from:
https://online.stockholding.com/aboutUs/shcilAboutUsIntro.aspx
Financial Terms, Retrieved from:
https://www.investopedia.com/
https://www.moneycontrol.com/
https://www.valueresearchonline.com/?
https://en.wikipedia.org/wiki/Main_Page
Grewal B.S. (2011), Higher Engineering Mathematics1
Life Insurance Plans (2018), Retrieved from:
https://www.bajajallianz.com/Corp/content/health/GPGP_brochure.pdf
https://www.bajajallianz.com/Corp/content/health/Health_Guard_Brochure.pdf
https://www.iciciprulife.com/content/dam/icicipru/brochures/Future_perfect.pdf
https://www.iciciprulife.com/content/dam/icicipru/brochures/ICICI-Pru-iProtect-Smart-Illustrated-
Brochure.pdf
Madhapady H. (2013-15), Mutual Fund Simplified2
Mutual Fund Schemes (2018), Retrieved from:
https://www.idfcmf.com/IDFC-Dynamic-Equity-Fund-912
https://www.idfcmf.com/IDFCFocusedEquityFund-131
https://www.idfcmf.com/IDFC-Multi-Cap-Fund-(Formerly-Known-as-IDFC-Premier-Equity-Fund)-
170
https://www.idfcmf.com/IDFC-Sterling-Value-Fund-(Formerly-Known-as-IDFC-Sterling-Equity-
Fund)-176
https://www.idfcmf.com/IDFC-Tax-Advantage-(ELSS)-Fund-214
https://www.icicipruamc.com/icici-prudential-mutual-fund/funds/hybrid-funds/icici-prudential-
balanced-advantage-fund
https://www.icicipruamc.com/icici-prudential-mutual-fund/funds/hybrid-funds/icici-prudential-
dynamic-plan
https://www.moneycontrol.com/mutual-funds/nav/icici-prudential-pharma-healthcare-and-
diagnostics-p-h-d-fund-regular-plan/MPI3739
https://www.valueresearchonline.com/funds/newsnapshot.asp?schemecode=36528
https://www.icicipruamc.com/icici-prudential-mutual-fund/funds/equity-funds/ICICI-Prudential-
Value-Discovery-Fund
http://www.tatamutualfund.com/our-funds/equity/sectoral/tata-india-consumer-fund
http://www.tatamutualfund.com/our-funds/equity/sectoral/tata-digital-india-fund
http://www.tatamutualfund.com/our-funds/equity/diversified/tata-equity-p-e-fund
http://www.tatamutualfund.com/our-funds/close-ended/equity/tata-value-fund-series---1
http://www.tatamutualfund.com/our-funds/solution-based/retirement-solution/tata-retirement-savings-
fund
1 Used as a reference for Statistical Analysis.
2 Used as a reference for the Analysis Section.
84

REFERENCES
Pandit K. and Anand S. (2018), Investment Preferences, Retrieved from:
https://goo.gl/forms/516XuQQPJVrJz8M73
Poddar J. (2010-12), A Descriptive Analysis of Depository Participant with Stock Holding
Corporation of India Ltd3
Products and Services Offered (2018), Retrieved from:
https://custody.stockholding.com/shcilCustodianInIndia.aspx;
https://online.stockholding.com/broking/broking-services.aspx;
https://online.stockholding.com/cms/clearing-member-servies.aspx;
https://online.stockholding.com/demat/demat-services.aspx;
https://online.stockholding.com/deri/derivative-services.aspx;
https://online.stockholding.com/distribution-services.aspx;
https://online.stockholding.com/distribution/business-associate.aspx;
https://online.stockholding.com/goldrush/gold-accumulation-plan.aspx;
https://online.stockholding.com/goldsilver/goldcoin.aspx;
https://online.stockholding.com/pfrda/national-pension-system.aspx;
http://www.stockholdingdms.com/;
https://www.shcilestamp.com/estamp_intro.html;
https://www.shcilservices.com/product-services
Singh M.R. (2012), Marketing Research for New Product Launch: Cisatracurium4
StockHolding (2017), Annual Report (2016-17)5
3 Used as a reference for Statistical Analysis.
4 Used as a reference for the format of the report.
5 Used as a reference for Financial Data of SHCIL.
85

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