Whether the individual underlying stocks in my smallcase will be credited directly to my demat account? or i would be able to see only the smallcase as a single line item in my demat account??
The individual shares will come to your demat account, and you will be able to see them under holdings on kite. You can choose to filter your holdings on Kite to see the shares you bought through Kite directly, Smallcase or mutual funds.
will i be considered as a shareholder of the company if i invest through smallcase?
Yes you are a shareholder, through Smallcase you are essential buying into the basket of stocks.
whether i am duly eligible to get all the rights of a shareholder of the underlying company or now?
Yes, by default.
Also do check out the feature of creating an SIP on Smallcase.