problem in coordination between head office and branches

1. Savvy Consultancy Ltd.
Case study

2. Background
• Savvy consultancy Ltd. is Depository Participant (DP) and also a Registrar
and Transfer agent.
• Corporate office in Ahmedabad and 36 branches in different parts of the
country.
• Shares are dematerialize at corporate office.
• Mr. Manish is Deputy General Manager and in charge of DP services.
Off-late he is facing a lot of problem in branch co-ordination.

3. Structure
NSDL or CDSL
Depository Participant Registrar and Transfer agent
Savvy
consultancy
Ltd
Depository
Savvy
consultancy
Ltd
Investor Company
Client Issuer

4. Services provided by Depository
– Dematerialisation (usually known as demat) is converting physical
certificates to electronic form.
– Rematerialisation, known as remat, is reverse of demat, i.e. getting
physical certificates from the electronic securities.
– Transfer of securities, change of beneficial ownership.
– Settlement of trades done on exchange connected to the Depository.

5. Department Study
• Mr. Pradeep in charge of opening Demat A/C and processing request form.
• Receives a/c opening appl. form from branches through post.
• Problem in smooth processing of forms, problems like photograph missing,
signature missing and incomplete forms etc.

6. Cont.…
• It takes 5 minutes to activate the account without any discrepancies.
• In rejection it takes 7 days to correct it and data to be processed.
• In emergency cases or VIPs, branch manager sends either email or fax the
name and address.
• Negligence of branch toward corporate office.

7. Supporting Data
Month of Aug and Sep
branches AGR AKHD AMBD AMR ANDH BGLR … TOTAL
Reasons
First holder sign req. 4 1 1 32
Second holder sign req 1 2 13
Third holder sign req 0 0 4
Insufficient bank details 8 2 17 10 10 232
Address req. 0 3 1 9
Agreement form req. with
rs. 10 stamp 18 5 32 21 13 485
photograph of holder 0 1 1 1 5 79
RBI refernece number 2 1 1 12 54
RBI approval date 0 2 12 54
MOA requ 0 1 3 5
Board resolution req 0 6 10
other 3 3 3 45
Unclear name 0 3 1 27
Total 36 35 33 41 66 … 1050

8. Transaction Department
• Incomplete or wrong information on the transaction slip send by the branch
office.
• Mr. Gopal Prasad, head of branch Coordination department.
• All the branches are divided under the 3 people, who works under Mr.
Prasad.
• Their responsibility are;
– Handling branch queries
– Coordinating activities between branch and corporate office.
– Follow up

9. Cont.
• Problems
– There was no follow up by coordination department.
– Branch code wrongly entered by corporate office.
– Branch ignore the Do’s and Don’ts laid down by corporate office.
• Lack of staff at branch offices.

10. Suggestion
• Recruit the people at branch.
• Warning should be given to Mr. Gopal.
• Give training to employees.
• One on one session on monthly basis.