National Securities Depository Limited · BSE:NSDL
National Securities Depository — Investor Presentation (May 2024)
45 slides from National Securities Depository's investor presentation, May 2024
Slide 1: Basics of Stock Selection
Basics of Stock Selection @ © NSDL
Slide 2: Indian Securities Market - Overview
Indian Securities Market - Overview Market Regulator SEBI Stocks and Commodities Other Depositories Derivative Intermediaries Exchanges Stock Brokers, NSE, BSE, MSE, RTAs, Mutual NSDL, CDSL MCX etc. Funds, Investment Advisors etc.
Slide 3: Starting Investment in Securities Market
Starting Investment in Securities Market Accounts Required Bank Account Trading or Broking Account Demat Account Many DPs offer a 3-in-1 account opening facility which gives you the convenience of opening a trading, demat and bank account – all together. Now many DPs are offering online demat accoun
Slide 4: About NSDL
About NSDL 1996 Demat accountholders present First Depository One of the leading Depositories in in 99.27% of pincodes in India in India the world Wide service network – all States and UTs No. of Service Centres – 61,298
Slide 5: Growing Custody Value
Growing Custody Value 423.44 > 87% Market 294.45 Share 227.51 119.30 67.56 Dec. 2010 Dec. 2015 Dec. 2020 Dec. 2021 Mar 2024 Total Value of All Assets Held In All NSDL Demat Accounts in ₹ Lakh Crore
Slide 6: NSDL's Progress
NSDL’s Progress 350 Bank deposits and 302 300 NSDL Custody Value 244 250 200 186 172 169 160 155 146 Aggregate Bank Deposits of All 150 140 129 Scheduled Banks (in ₹ Lakh 117 Crore) 110 100 NSDL Demat Custody Value (in ₹ Lakh Crore) 50 Bank Deposit Source : RBI 0 Mar. 31, 2017 Mar. 31, 2018 Mar. 31,
Slide 7: NSDL's Progress
NSDL’s Progress 350 GDP and NSDL Custody Value 302 300 250 244 237 201 198 200 190 186 171 172 GDP at Market Price (in ₹ Lakh Crore) 160 154 146 NSDL Demat Custody Value (in ₹ Lakh Crore) 150 100 50 GDP Source : https://dbie.rbi.org.in/ 0 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Slide 8: Indian Securities Market - Depository System
Indian Securities Market - Depository System Issuer Company / RTA Clearing Corporation (NSE Clearing Limited/ Other Depository Indian Clearing Corporation Limited) DP 1 DP 2 Stock Broker / Stock Broker / Trading Member 1 Investor 1 Investor 2 Clearing Member 2
Slide 9: Services offered by Depository Participant
Services offered by Depository Participant Account Opening Change in account details Demat*, Remat of securities, Account freeze Conversion & Redemption of (Account level, ISIN level Mutual Fund Units and Quantity level) Transfer of securities** Pledge and Margin Pledge of securities *Even unlisted
Slide 10: Key points on Anti-Money Laundering
Key points on Anti-Money Laundering Legislative and Regulatory References • Prevention of Money Laundering Act, 2002 • Prevention of Money Laundering (Rules), 2005 • SEBI Master Circular – October 15, 2019 What is Money Laundering (ML)? • Money Laundering is “the process in which the proceeds of cri
Slide 11: Key points for all Investors
Key points for all Investors Individuals: • Provide officially valid documents for proof of identity and address • Furnish correct information on income, occupation, business, marital status, etc. • Provide accurate financial information – salary or business income as applicable • Inform about any c
Slide 12: Be a Prudent Investor
Be a Prudent Investor Keep record of documents signed, account statements, contract notes received and payments made. Save important emails and take periodic back up of data. Change password of your online accounts frequently. Never share your passwords, OTP, CVV and PIN with any one. Never click on
Slide 13: Be a Prudent Investor
Be a Prudent Investor Inform your DP about any change in your Personal Information such as address, bank account immediately. Always mention your Mobile Number and email ID in account opening form and keep them updated. NSDL publications and presentations are available in Hindi, English and other la
Slide 14: Be a Prudent Investor – Don'ts
Be a Prudent Investor – Don’ts Never deal with any unregistered or unauthorised market intermediary. Check on the SEBI’s website that your stock broker / authorised person, mutual fund distributor, investment advisor are registered with SEBI. Never invest with borrowed money. Avoid unnecessary loans
Slide 15: Be a Prudent Investor
Be a Prudent Investor @ NSDL Technolowy, Teust & Rewett wrt Nominate Karo - Surakshit, Samajhdaar, | @ NSDL aur Atmanirbhar Niveshak Bano! B.. Hurry!! Last date is ca ___ June 30, 2024 NOMINATE YOUR LOVED ONES TODAY!! | Teen st Opting-in/Opting-out of nomination is mandatory in your Demat Account to
Slide 16: Be a Prudent Investor
Be a Prudent Investor @ NSDL Technolowy, Teust & Rewett ier Do Not Fall Prey To Stock Tips, Hot Picks etc. Circulated on Twitter, Instagram, WhatsApp, Telegram, Unsolicited SMS, YouTube Channels etc. Be a Prudent Investor ult a SEBI Regist E t Advisor and Do You Homework Bef
Slide 17: Be a Prudent Investor
Be a Prudent Investor @ NSDL Technolowy, Teust & Rewett ier Do Not Invest In Any Ponzi Scheme, Unregistered Collective Investment Scheme or Any Other Schemes Promising Unrealistic Returns
Slide 18: NSDL Newsletter for Investors
NSDL Newsletter for Investors The Financial Kaleidoscope – Free monthly newsletter Newsletter – The www.nsdl.co.in Education Financial Kaleidoscope
Slide 19: SEBI Investor Website
SEBI Investor Website Learn to Manage Your Money for Financial well-being. For more information, please visit SEBI’s Investor website https://investor.sebi.gov.in
Slide 20: SEBI's Mobile App for Investor Education
SEBI’s Mobile App for Investor Education
Slide 21: If You are holding Securities in Paper form
If You are holding Securities in Paper form 1. Provide PAN, KYC information and Nomination to RTA / Company for all joint holders. 2. Get PAN and Aadhaar linked for all joint holders. 3. Folio may be frozen if not complied. 4. Electronic interface provided by company / RTA for various service reques
Slide 22: Grievances Redressal
Grievances Redressal 1. Read Investor Charter at www.nsdl.co.in → Education 2. Lodge your complaint with SEBI at https://scores.sebi.gov.in/ or SEBI Mobile App – SCORES. 3. For filing dispute for resolution by conciliation and arbitration, visit SEBI’s Securities Market Approach for Resolution Throu
Slide 23: Be cautious
Be cautious while scanning QR codes to make payments. Be alert of online loan apps and quick-win lottery schem Be alert. Never click on ) unknown links... you may risk expo: your bank account to frauds. Unauthorised Digital Lena App Fake Lottery Schemes Beware of unknown links: * Delete SMS/emails w
Slide 24: Basics of Stock Selection
© NSDL Basics of Stock Selection
Slide 25: Why Do We Invest?
Why Do We Invest? Investment is necessary to support your financial needs when you do not earn money. 1. By investing a portion of your income you allow money to grow and work for you. 2. 3 parameters to assess suitability of any investment avenue are – i. Return potential ii. Safety iii. Liquidity
Slide 26: What is meant by Stock Selection?
What is meant by Stock Selection? Stock selection is the selection of one or more stock (or shares) based on certain set of criteria in order to maximise the probability of meeting the trading or investment objective. There are more than 5000 stocks available for trading or investment. None can trad
Slide 27: Types of Analysis
Types of Analysis Economic Fundamental Technical Quantitative Qualitative
Slide 28: Fundamental Analysis
Fundamental Analysis Fundamental analysis is a method used to identify the true value of a stock. 1. The current price of a stock may not reflect the actual value of the stock. The stock may be overvalued or undervalued in the market. 2. Fundamental analysis helps investors to study the health of th
Slide 29: Economic Analysis
Economic Analysis 1. It involves assessing or examining topics or issues from an economist’s perspective. 2. This allows investors to analyse the market from the big picture to all the way down to individual stocks. 3. By examining the economic numbers one can determine the current market strength a
Slide 30: Types of Fundamental Analysis
Types of Fundamental Analysis Qualitative Analysis It takes into account information that can not be expressed in numbers. i. It relates to the company itself. ii. Factors – examples – a) Management experience and performance b) Corporate governance c) Industry and competition etc.
Slide 31: Types of Fundamental Analysis
Types of Fundamental Analysis Quantitative Analysis i. It is related to information that is shown in company’s financial statements. It involves measuring simple statistical data to complex calculations. ii. This analysis helps you to evaluate investment opportunities such as when to buy and sell se
Slide 32: Using Financial Ratios for Fundamental Analysis
Using Financial Ratios for Fundamental Analysis 1. Price To Earnings Ratio i. It is one of the most widely used financial ratio analysis. ii. Computation - Price Per Share / Earnings Per Share. iii. As a thumb rule, a low P/E ratio is preferred while buying a stock. 2. Price To Book Value i. Computa
Slide 33: Financial Ratios
Financial Ratios 3. Return On Equity (ROE) i. It is the amount of net income returned as a percentage of shareholders equity. ii. Computation - Return on Equity (Net Income) / Average Stockholder Equity. 4. Debt To Equity Ratio i. It measures the relationship between the borrowed capital (i.e. debt)
Slide 34: Financial Ratios
Financial Ratios 5. Current Ratio i. It is a key financial ratio for evaluating a company's liquidity. ii. Computation - Current Assets / Current Liabilities. iii. As a thumb rule, a company with a current ratio greater than 1 is better.
Slide 35: Technical Analysis
Technical Analysis It focuses on the stock market, rather the company. It seeks to predict price movements by examining historical data, mainly price and volume. The underlying idea is that the market price already reflects the fundamentals of any given stock, which therefore can be ignored. It is a
Slide 36: Basic Terms Used in Study of Price Charts
Basic Terms Used in Study of Price Charts Term Meaning Support Level A level below which the price will likely not fall Resistance Level A level above which the price will not likely rise Breakout When a stock rises above its resistance level or falls below its support level Trend line A regression
Slide 37: Price Charts
Price Charts Technical analysts use a variety of charts based on the information they seek. However, there are three types of charts that are most commonly used. They are: Line, Bar and Candlestick Line Chart 1. It plots the closing price of a share for each trading day over a period. 2. The line fo
Slide 38: Price Charts
Price Charts Bar Chart 1. It plots the intra-day high and low prices of a stock using a bar for each trading day for a specified time period. 2. The top of the bar corresponds to the day’s high and the bottom, day’s low. 3. Two additional horizontal lines indicate the opening and closing price. The
Slide 39: Price Charts
Price Charts Candlestick chart 1. It displays the relationship between the high & low and opening & closing prices of a stock. 2. The body of the candle represents the opening and closing prices during the period. 3. Above and below the body are vertical lines called wicks or shadows that show the l
Slide 40: Difference between Fundamental & Technical Analysis
Difference between Fundamental & Technical Analysis Fundamental analysis Technical analysis Analyses stock value based on economic and Analyses historical stock movement to financial factors predict the future price of a stock Long-term approach Short-term approach Uses financial statements for anal
Slide 41: 5 Steps Approach For Great Stock Picking
5 Steps Approach For Great Stock Picking 1. Approach stock purchases as buying a business rather than just a stock purchase in the portfolio. 2. Evaluate the true worth of the business considering the future earning potential. 3. The margin of safety is the real risk containment measure, and not sto
Slide 42: Remember
Remember 1. Always remember your financial goals and investment timeframe. 2. Review your financial goals periodically, at-least once in 5 years. 3. Risk and Return profile of various assets are not constant. 4. Consider taking help from a registered and qualified Investment Advisor. 5. No stock rem
Slide 43: Investing money is the process of committing resources
“Investing money is the process of committing resources in a strategic way to accomplish a specific objective.” Alan Gotthardt
Slide 44: Follow us on
Demat Ki Paathshala - An initiative by NSDL for Investor Education Follow us on
Slide 45: THANK YOU
THANK YOU We welcome your feedback and suggestions about this program at www.nsdl.co.in / [email protected]
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