Icici Direct Project Report

PREFACEMBA is a professional course wherein for a student to posses only theoretical knowledge alone is not enough but also to improve practical skill which is helpful to them in every field of life in their future. Students need to have a practical implementation in the current scenario.

Experience is the best teacher's. This saying is very well applicable in everyone's life. Therefore as a student of management it must apply to me also. Then the question arises that from where we can get this experience. Obviously we must undergo practical Training. To serve this purpose I had undergone eight weeks summer training at ICICI securities limited and as an outcome I have prepared this project report.

This project report on COMPETITIVE ADVANTAGE OF ICICI DIRECT .This project also deals with various activities of ICICI securities limited. The experience of this training will be useful in my future.

It is my pleasure to present work after I had finished my training at ICICI securities limited. This training has expanded my horizon of knowledge in practical as well as theoretical, which is vital for any student in management level studies. After completion of this training I come to know that when we study theory but practice it is very difficult to understand. Therefore to serve dual purpose of practical training has been made compulsory for the student of MBA.

Such training promotes a student to boost his potentials and the inner qualities, and thereby students come to know about their reality that how the theoretical knowledge works in actual sense in any unit. This has indeed proved to be very useful to me.

A1l information given here are correct and true according to me, and sincerely apologize if incorrect data.

ACKNOLEDGEMENTFirst of all I would like to express my sincere gratitude to Mr.Subhendu Das, Area manager of ICICI securities limited, Athwagate Surat brance for allowing me for summer training at ICICI securities limited.

I heartily feel thanks to Mr.Bhavesh Patel ,sales manager who provide me valuable suggestions and guidance at every stage of my summer training.

I would like to express my gratitude to ; my project mentor and other faculty member of SOM LALIT INSTITUTE OF BUSINESS MANAGEMENT, Ahemedabad for guide me.

I would like to thank following persons who help me lot in my summer training.

Mr.Imran Dabhi, sales manager, ICICI securities limited

Mr.Jignesh Nayak, sales manager, ICICI securities limited

Mr.Amit Kumar, sales manager, ICICI securities limited

I also thank to sales Executive for opening Demte account, which have been helpful and faithful enough to give the required information, which helped my project to be great success, which was the main and important part of my project. I feel happy indeed and it has given me a lot of pleasure in company.

Last but not the least I would like to extent my deep sense of gratitude to my family and all whom guided and helped me during my training period.

Place: Surat Sunil K. Patel

Date: July-2008

EXECUTIVE SUMMARY

INDEX

LIST OF TABLE

LIST OF FIGUERS

Introduction

1.1 GENERAL INTRODUCTION

PHYSICAL CERTIFICATES - THE TRADITIONAL WAY

The Indian capital market has seen an unprecedented boom in its activity in the last decade. We can now boast of a very large investor population and substantial volumes of trade. However, this surge in activity has brought with it, numerous problems that threaten the very survival of the Capital market in the long run. A closer inspection of the problems would reveal that most of them arise due to the intrinsic nature of paper based trading and settlement.

This century-old system of trading and settlement requires handling of huge volumes of paper leading to increased costs and inefficiencies. Simultaneously, they expose the investors to greater risks putting them at a disadvantage. Some of these areas are:

Unwarranted delay in transfer of shares. It takes 30 to 60 days for the investors to get the shares lodged in their name;

Possibility of forgery on various documents leading to bad deliveries, legal disputes etc;

Theft of shares leading to defective title in shares purchased and subsequent litigation;

Prevalence of fake certificates in the market;

Mutilation or loss of share certificates in transit;

Increased transaction costs due to stamp duty, fake shares, rejection by registrars, etc.

This has made the investors, both retail and institutional, wary of entering the Indian capital market. In this scenario, it was felt that the getting up of a depository and the introduction of scrip less trading and settlement is imperative for the efficient functioning of the market.

The Indian capital market has witnessed numerous changes in the recent past. Historically stock market booms have always resulted in a number of problems for the lay investor. Sometimes, the problem may magnify them and threatens to engulf the entire capital market. A close introspection of these problems will reveal that most of them are due to intrinsic nature of paper based trading and settlement. All this may have driven away many potential investors and Foreign Institutional Investors. Dematerialization of shares is looked upon as the remedy for the paper based problems.

With effect from august 19, 1998 SEBI has granted certificate of registration of Central Depository Services (I) Ltd. (CDSL).

Yet even with demat, from the point of view of investors there are numerous problems. Here Wallet Watch introduces you to setting up of a demat account and introduction of scrip less trading and settlement. There are numerous benefits of this scrip less trading and settlement, which Wallet Watch has discussed in detail.

Company profile:

2.1 INTRODUCTION ABOUT THE COMPANYEven as the European and American stock markets reckon with the changes brought about by the Internet and IT/telecom advances, the Indian stock market has quickly moved to global standards.

The sheer breadth of the changes since the National Stock Exchange started operations in 1994 and with the Securities and Exchange Board of India (SEBI) also driving the changes in the market system, have enabled the Indian market to move well ahead in just five years.

Even as online automated trading and better clearing and settlement mechanisms have been put in place, perhaps, the most significant change in the Indian market has been the coming of paperless trading; it may well be a precursor to the next big changes rolling settlements and Internet trading. But the push towards paperless trading stands out even in a decade when the market landscape has changed beyond recognition.

Dematerialization (holding and trading securities in paperless mode) was an alien concept in India before 1995; in five years, large quantities of paper have been flushed out of the system. Since the entry of the foreign institutional investors (FIIs) and online trading, the old system, laden with paperwork at every conceivable stage, was out of place in an otherwise fast trading environment.

As the FIIs complained about the paperwork as a major constraining factor, the government and SEBI took notice. The requisite legislative changes were put in place quickly - the Depositories Act, 1996 was passed and the NSE, with the UTI and the IDBI, set up the National Securities Depository Ltd (NSDL).

But the depository concept did not gain popularity; the FIIs which had clamoured for its introduction, now ignored it. The reason: Lack of liquidity. But, unless the institutional investors stepped in, there could be no liquidity. This stalemate frustrated the push for a paperless environment.

Until SEBI stepped in, that is.

With regulatory pushes SEBI, in phases, made demat trading in stocks mandatory for institutions first and, then, for all investors. Mandatory paperless trading, forced the FIIs to dematerialise their holdings quickly.

As a consequence of SEBI's action, most major stocks are traded in the paperless mode now. The second phase will involve some 200 stocks in a few months time. The effect of SEBI's action is evident from NSDL's statistics. A total of 698 companies, with a market capitalisation of Rs. 7,37,300 crores (almost 80 per cent of the market capitalisation of all listed stocks), is enrolled with the NSDL.

With 13.65 billion shares in the demat mode, nearly 19 million investor accounts, and securities valued at Rs. 3,96,800 crores ($91 billions) actually dematerialised, the concept of dematerialisation can be said to have taken roots. If the regulatory direction is any indication, more paper will be flushed out of the system in the next two years.

The costs of dematerialisation have declined as the NSDL slashed charges as volumes expanded and the competition _ from the Central Depository Services Ltd (CSDL) floated by the BSE _ started in 1999 second half. A series of measures by SEBI and NSDL also helped ease the strain faced by retail investors.

From a long-term perspective, demat in India is of considerable significance. Not only has the general trading environment improved and quickened, volumes too have perked up, even in the demat segment. With demat taking off, there is now scope for an improvement in the quality of investor services.

As a consequence of dematerialisation, the Indian market is also well prepared for web-based trading though the quality of telecom infrastructure and inadequacies in the banking system-stock exchange linkages may cause delays. Notably, with regard to the thrust towards paperless trading, the Indian market managed in three years what took even the US much longer.

With a high degree of dematerialisation a reality, the stage is set for rolling settlements and web-based trading. Once these are in place, the Indian market will have moved closer to the standards in advanced markets, such as the US. And paperless trading may well be the catalyst for such a rapid advancement.

2.2 HISTORY OF THE ORGANIZATION:

The dematerialized form of shareholding and the depository mode of trade (scrip less trade) have been in operation in developed financial markets for over 15 years. In India, the first depository commenced operation a decade back and is relatively new. The Indian financial market is in need of both scrip-based and scrip less trade, but the investing community, which is used scrip-based trade, is bound to take some time to accept the latter. The scrip less trading, till now a domain of the western world, institutional investors and GDR holders is now mandatory even for small investors. All those who hold physical share certificates have to get them dematerialized. If they do not, they will be forced to do so at the time of sale.

The countless numbers of conservative Indians have to digest it, whether they like it or not. First, the institutional investors succumbed. Then the high net worth individuals, trading in more than a certain numbers of shares, were forced to give in. now, it is the turn of the small investors of select-companies.

With their share certificates being replaced by small slips and receipts, naturally the average investors will have their share of fears and apprehensions. It is necessary to educate and convince these investors about the benefit of Demat rather than forcing them to take part in the game.

2.3 Companys Vision:To make ICICI Direct the dominant online share trading by world class people and services.

This we hope to achieve by:

Understanding the needs of customers and offering them superior product and service.

Leveraging technology to service customers quickly and conveniently.

Developing and implementing superior risk management and investment strategic to offer sustainable and stable return to our shareholder.

Providing and enabling environment to foster growth and learning for our employees

2.4 Companys mission:To judged by their sales and earnings growth rates than on the absolute value of their sales and earnings. Look for companies that consistently grow faster than there peers.

Investors prefer companies that increase profit margins -- the percentage of sales that they keep -- every year. This is accomplished either by lowering expenses or raising prices. Look for companies that consistently find ways to squeeze more profits out of sales than their peers.

The financial health of a company is dependent on a combination of profitability, short-term liquidity and long term liquidity. Companies, which are profitable, but have poor short term or long term liquidity measures, do not survive the troughs of the trade cycle

2.5 Major Player of the Industry S. S. Kantilal Ishwarlal Securities Pvt. Ltd. (sharekhan.com ):

Sharekhan, India's leading stockbroker is the retail arm of SSKI, and offers you depository services and trade execution facilities for equities, derivatives and commodities backed with investment advice tempered by decades of broking experience. A research and analysis team is constantly working to track performance and trends. That's why Sharekhan has the trading products, which are having one of the highest success rates in the industry. Sharekhan is having 240 share shops in 110 cities; the largest chain of retail share shops in India is of Sharekhan.

In future, Sharekhan is planning to enter in Mutual funds, Insurance sector and banking sector to expand beyond the market currently covered by it. And it has started MF (Mutual Funds) on priority basis but wants to grow in it.

ICICI WEB TRADE LTD. (lCICIdirect.com):

ICICIdirect.com was the first entrant into e-broking. ICICdirect.com provides the 3in-l to the users which ties in their saving bank account and their Demat account to their brokerage account electronically. This integration ensures that money is transferred to/from their bank account and the shares are transferred from/to their Demat account automatically without writing any cheques or transfer instructions while carrying out their trades in shares.

ICICldirect.com has the option of trading in shares in cash, margin or spot segments. An investor can also invest in 14 Mutual Funds (Prudential ICICI MF, Franklin Templeton India MF, Alliance Capital MF, 1M MF, Birla Sun Life MF, Sundaram MF, IL&FS MF, Principal MF, HDFC MF, Standard Chartered MF, Reliance Capital MF, Kotak Mahindra MF, TATA MF and DSP MERRILL LYNCH MF) through their trading account.2.6 OBJECTIVES OF THE STUDY

Study of ICICI Direct.com (online share trading)

Study of dematerialization in ICICI Capital Ltd.

Customers satisfaction and awareness of ICICI Capital Services Ltd.

ICICI Capital Services Ltd., is depository participant (DP) and it is providing the financial services to the share holders and various other DPs also providing almost same services which leads to a competition. So in order to retain the existing customers of ICICI Capital Ltd. and to attract new customers knowing the customers need and preferences and expectation is very important. The study involves knowing the expectation and satisfaction level of ICICI Capital Ltd. customers.

2.7 PRODUCT PROFILE

DE-MAT

The dematerialized form of shareholding and the depository mode of trade (scrip less trade) have been in operation in developed financial markets for over 15 years. In India, the first depository commenced operations a decade back and is relatively new. The Indian Financial Markets is in need of both scrip-based trade, but the investing community, which is used to scrip-based and scrip less trade, is bound to take some time to accept the latter. The scrip less trading, till now a domain of the western world, institutional investors and GDR holders is now mandatory even for small investors. All those who hold physical share certificates have to get them dematerialized. If they do not, they will be forced to do so at the time of sale.

A process by which the physical certificates of an investor are taken back by the company / registrar and actually destroyed and an equivalent number of securities are credited in the electronic holdings of the investor.

Offers services to clients dealing in Government securities through the SGL A/C. besides holding the securities, ICICI Capital Services Ltd.

Provides records update based on the transactions made by the clients.

Collects and credits the benefits and proceeds from sale to the clients account; and

Supplies periodical reports on the transactions and holding of the clients.

Trading:

Next function activates when an investor buys or sells in the market. Buying:1. An investor gets order executed and makes payment to the broker.

2. Investor instructs his Depository Participant to expect credit on settlement day. Broker instructs his DP to debit his Clearing Member account on settlement day.

3. Before settlement day Broker makes payment to clearinghouse through Clearing Bank.

4.On settlement day Clearing house releases shares to brokers Clearing Member account which is then transferred to investors account through NSDL (National Securities Depository Limited). Investor gets credit in his account.

sELLING:

1. An investor gets order executed.

2. Investor instructs his Depository Participant to debit his account with immediate effect. The shares move from investors account to Brokers Clearing Member account via NSDL. A Broker clearing member accounts is credited.

3. Before settlement day broker transfers shares from his clearing member account to Clearinghouse via NSDL. His account is debited.

4. On settlement day Broker receives payment from clearing house which he passes on to the investor.

ICICIDirect.com

ICICIDirect.com is a truly online share-trading site. This means that from the time you punch in a buy or sell trade on your computer to the final settlement in your account, everything happens completely online. The 3-in-1 e-invest account integrates your brokerage, bank and one or more depository accounts to make sure that you can do the otherwise cumbersome share trading from the comfort of your home or office, at absolutely any time of the dayor night.

How can one open an account in demat?First an investor has to approach a DP and fill up an account opening form. The account opening form must be supported by copies of any one of the approved documents to serve as proof of identity (POI) and proof of address (POA) as specified by SEBI. Besides, production of PAN card in original at the time of opening of account has been made mandatory effective from April 01, 2006.

All applicants should carry original documents for verification by an authorized official of the depository participant, under his signature.Further, the investor has to sign an agreement with DP in a depository prescribed standard format, which details rights and duties of investor and DP. DP should provide the investor with a copy of the agreement and schedule of charges for their future reference. The DP will open the account in the system and give an account number, which is also called BO ID (Beneficiary Owner Identification number).

The DP may revise the charges by giving 30 days notice in advance. SEBI has rationalised the cost structure for dematerialisation by removing account opening charges, transaction charges for credit of securities, and custody charges vide circular dated January 28, 2005.

Further, SEBI has vide circular dated November 09, 2005 advised that with effect from January 09, 2006, no charges shall be levied by a depository on DP and consequently, by a DP on a Beneficiary Owner (BO) when a BO transfers all the securities lying in his account to another branch of the same DP or to another DP of the same depository or another depository, provided the BO Account/s at transferee DP and at transferor DP are one and the same, i.e. identical in all respects. In case the BO Account at transferor DP is a joint account, the BO Account at transferee DP should also be a joint account in the same sequence of ownership.

Demat ServicesICICI Bank Demat Services boasts of an ever-growing customer base of over 11.5 lacs account holders. In our continuous endeavor to offer best of the class services to our customers we offer the following features:

e-Instructions: You can transfer securities 24 hours a day, 7 days a week through Internet & Interactive Voice Response (IVR) at a lower cost. Now with "Speak to transfer", you can also transfer or pledge instructions through our customer care officer.

Consolidation Demat Account: Dematerialise your physical shares in various holding patterns and consolidate all such scattered holdings into your primary demat account at reduced cost.

Digitally Signed Statement: Receive your account statement and bill by email.

Corporate Benefit Tracking: Track your dividend, interest, bonus through your account statement.

Mobile Request: Access your demat account by sending SMS to enquire about Holdings, Transactions, Bill & ISIN details.

Mobile Alerts: Receive SMS alerts for all debits/credits as well as for any request which cannot be processed.

Dedicated customer care executives specially trained at our call centre, to handle all your queries.

Countrywide network of over 235 branches, you are never far from an ICICI Bank Demat Services outlet.

Product and Services

A product for every need: ICICldirect.com is the most comprehensive website, which allows investor to invest in Shares, Mutual funds, Derivatives (Futures and Options) and other financial products. Simply put ICICldirect.com offer investor a product for every investment need.

Trading in shares:

1. Cash Trading:- This is a delivery based trading system, which is generally done with the intention of taking delivery of shares or monies. Cash position is meant to be settled by delivery, the required cash or securities are blocked in full. For example, if you place an order to buy 100 shares of ICICI, you need to have 100% of the order value in your available limit/funds. And incase you wish to sell 100 ICICI shares you need to have 100% shares in your demat balance.

2. Margin Trading: You can also do an intra-settlement trading up to 3 to 4 times your available funds, wherein you take long buy/ short sell positions in stocks with the intention of squaring off the position within the same day settlement cycle. When you place an order to buy 100 shares of Reliance in the cash segment, your intention is to pay for and receive the shares in your Demat Account. However, if the same order were to be placed in the margin segment, your intention would be to sell those shares subsequently in the same settlement at a higher price and thereby make a profit on the same. However, if the price falls subsequently, there may be a loss.

3. Margin PLUS Trading: Through Margin PLUS you can do an intra-settlement trading up to 25 times your available funds, wherein you take long buy/ short sell positions in stocks with the intention of squaring off the position within the same day settlement cycle. Margin PLUS will give a much higher leverage in your account against your limits .

Margin PLUS offers an order placement feature through which you can take a intra-day position in the equity segment and at the same time, place a cover order for this position specifying the Stop Loss Trigger Price and the limit price. This cover order will help you to limit the loss, if any, on the position .

Margin Plus is available for intra day trading in more than 60 stocks on ICICldirect.com

Helps to limit your loss through a Stop Loss Order

Open Margin Plus positions can be closed any time before the End of Settlement timings as specified by ICICldirect.com

Auto Square off process to help you close your open positions at the End of the Day. How to place a Margin Plus order? Allocate the funds for trading in Equity segment.

Select the link "Margin Plus order" on the trading page.

Select the Buy/Sell option and the Stock for trading. (orders can be placed only during market hours)

The first Buy/Sell order can only be a market order.

At the time of placing this order, also select a cover Stop loss trigger order.

E.g. You Buy 100 shares of INFTEC at 3400, anticipating that the price would rise. At the same time, you will be required to place a cover stop loss order. Say you decide your stop loss price at 3330. You will then be required to state the limit price at say 5% lower level i.e. Sell 1 00 INFTEC at 3230 limit price and 3330 Stop Loss Trigger Price.

Hence if your view goes wrong and the price of INFTEC moves down, your Stop Loss order will be triggered at 3330 and will get executed at the best available price between 3330 and 3230.

If your position is favorable, and INFTEC moves up to 3500, you can modify the Stop Loss order to a market order and close your position.

4. Spot Trading: -This facility can be used only for selling your demat stocks which are already existing in your demat account. When you are looking at an immediate liquidity option, 'Cash on Spot' may work the best for you, On selling shares through "cash on spot", money is credited to your bank a/c the same evening & not on the exchange payout date. This money can then be withdrawn from any of the ICICI Bank ATMs. Currently offer S&P CNX NIFTY and CNX NIFTY JUNIOR scripts are available in 'Cash on Spot'. The maximum limit of 'Cash on Spot' trades that you can enter into on a daily basis is Rs 10, 00000.

5.BTST (BUY TODAY SELL TOMORROW): -Buy Today Sell Tomorrow (BTST) is a facility that allows you to sell shares even on 15t and 2nd day after the buy order date, without you having to wait for the receipt of shares into your demat account.

BTST is relevant for Investor when: -

1. If you have you ever missed making a huge profit because you had bought the shares just one day back and you could not sell them as they were not credited to your demat account?

2. If you have ever found that squaring off your cash based transactions within a day is not profitable, as one days time does not allow realizing maximum profit?

3. If you have ever thought of an intermediate option between cash and Margin trades where in you could make profits on volatile shares within one or 2 days of your buying them without a compulsory square off?

4. If you have ever faced any of the above situations, BTST is for you.

6. CallNTrade: Call Trade allows you to call on a local number in your city & trade on the telephone through our Customer Service Executives. This facility is currently available in over 11 major states across India.

7. Trading on NSE/BSE: Through ICICI direct. com, you can trade on NSE as well as BSE.

8. Market Order: You could trade by placing market orders during market hours that allows you to trade at the best obtainable price in the market at the time of execution of the order.

9. Limit Order: Allows you to place a buy/sell order at a price defined by you. The execution can happen at a price more favorable than the price, which is defined by you, limit orders can be placed by you during holidays & non-market hours too.

TRADE IN DERIVATIVES:

FUTURES

1. Through ICICI direct.com, you can now trade in index and stock futures on the NSE. In futures trading, you take buy/sell positions in index or stock(s) contracts having a longer contract period of up to 3 months.

2. Trading in FUTURES is simple! If, during the course of the contract life, the price moves in your favor (i.e. rises in case you have a buy position or falls in case you have a sell position), you make a profit.

3. Presently only selected stocks, which meet the criteria on liquidity and volume, have been enabled for futures trading.

OPTIONS

1. An option is a contract, which gives the buyer the right to buy or sell shares at a specific price, on or before a specific date. For this, the buyer has to pay to the seller some money, which is called premium. There is no obligation on the buyer to complete the transaction if the price is not favorable to him.

2. To take the buy/sell position on index/stock options, you have to place certain % of order value as margin. With options trading, you can leverage on your trading limit by taking buy/sell positions much more than what you could have taken in cash segment.

3. The Buyer of a Call Option has the Right but not the Obligation to Purchase the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Call has the obligation of selling the Underlying Asset at the specified Strike price.

4. The Buyer of a Put Option has the Right but not the Obligation to Sell the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Put has the obligation of Buying the Underlying Asset at the specified Strike price.

By paying lesser amount of premium, you can create positions under OPTIONS and take advantage of more trading opportunities

Investing in Mutual funds:

ICICldirect.com brings you the same convenience while investing in Mutual funds also Hassle free and Paperless Investing.

With the inclusion of Fidelity MF, you can now invest on-line in 19 mutual Funds through ICICI direct.com. Prudential ICICI MF, JM MF, Alliance MF, Franklin Templeton MF, Sundaram MF, Birla Sun Life MF, HDFC MF, Principal MF, UTI MF, Reliance MF, Kotak MF, Tata MF, DSP Merrill Lynch MF, ING MF, CHOLA MF, Deutsche MF, HSBC MF and Standard Chartered MF are the Mutual Funds available for investment.

You can invest in mutual funds without the hassles of filling application forms or any other paperwork. You need no signatures or proof of identity for investing.

Once you place a request for investing in a particular fund, there are no manual processes involved. Your bank funds are automatically debited or credited while simultaneously crediting or debiting your unit holdings.

You also get control over your investments with online order confirmations and order status tracking. Get to know the performance of your investments through online updation of MF portfolio with current NA V.

ICICldirect.com offers you various options while investing in Mutual Funds:

Purchase: You may invest/purchase Prudential ICICI MF, JM MF, Alliance MF, Franklin Templeton MF, Sundaram MF, Birla Sun Life MF, HDFC MF, Principal MF, UTI MF, Standard Chartered MF, Reliance MF, Kotak MF, Tata MF, DSP Merrill lynch MF, ING MF, CHOLA MF, Deutsche MF, HSBC MF and Fidelity MF without the hassles of filling application forms.

Redemption: In addition to giving hassle-free paperless redemption, ICICldirect.com offers faster liquidity. You can redeem the mutual fund units through ICICI direct.com. The money will be credited to your bank account automatically 3 days after the order placement date.

Switch: To suit your changing needs you may wish to shift monies between different schemes. You can switch your monies online from one scheme to another in the same fund family without any hassles.

Systematic Investment plans (SIP): SIP allows you to invest a certain sum of money over a period of time periodically. Just fill in the investment amount, the period of investment and the frequency of investing and submit. ICICIdirect.com will do the rest for you automatically investing periodically for you.

Systematic withdrawal plan: This allows you to withdraw a certain sum of money over a period of time periodically.

Transfer-in: You can convert your existing Mutual funds into electronic mode through a transfer-in request.

IPOs and Bonds Online:

You could also invest in Initial Public Offers (IPOs) and Bonds online without going through the hassles of filling ANY application form! paperwork.

Get in-depth analyses of new IPOs issues (Initial Public Offerings), which are about to hit the market and analysis on these. IPO calendar, recent IPO listings, prospectus/offer documents, and IPO analysis are few of the features, which help you, keep on top of the IPO markets.

Schemes offered for opening Demate account

ICICI direct.com allows 3 in I account scheme for opening Demate account. In which 3 types of account will be opened.

1. Demate account

2. Trading account

3. Savings account in ICICI bank

In Surat Demate account will be opened in Athwelines branch and savings account we can open in following any I branch and savings account will be opened at 0 balance.

ICICI bank-Athwelines branch, Surat

ICICI bank-Ring road branch, Surat

ICICI bank-Adajan branch, Surat

ICICI bank-varacha branch, Surat

The following scheme will be offered for opening Demate account

SCHEME SCHEME AlC TYPE OF BTST 2YRS NOTES

CODE NAME OPENING AlC SCHEME AMC

CHARGES FREE

S-l Any kind 750 3 in 1 Yes No -

of general

customer

Sl3 Existing 750 3 in 1 Yes No -

alc holder

in ICICI

~ bank

S6I ICICI 500 3 in 1 Yes No -

group

employees

Sl7 ICICI has 1 3 in 1 Yes No -

tie up with

some A,

A+

companIes

Sl7A ICICI has 1 or 250 3 in 1 Yes No -

tie up with

some A,

A+

compames

S17B ICICI has 250 or 450 3 in 1 Yes No -

tie up with

some A,

A+

compames

S18 Offline 1 or 750 3 in 1 Yes No -

Demate

alc with

ICICI

bank

S22 The client 1 3 in 1 Yes No Products

have a like: -life

product of Insurance,

ICICI mutual

group fund,

home

loans,

general

Insurance,

credit

card, gold coin of 5 gm

Documents needed for opening Demate account with icicidirect.com

List A: - Pan card (compulsory)

List B: - bank pass book (nationalized bank only permitted),bank letter in case of icici bank account holder , pass port, electricity bill, telephone bill.

List C: - voter id / driving licenece

List D: - mobile bill/ LIC premium receipts

If customer not able to present any kind of documents from list B then he/she has to present list C + list D (both of combination)

Following documents attached with Demate account form: -

1. Annexure form

2. Declaration form

3. Scheme form

4. Pan card

5. Resident proof from list B or list C + list D

6. Cheques of 1 Rs or 750 Rs

The ICICldirect Advantages: -

A Unique 3-in-1 account that gives you:

1. Convenience: the 3-in-l accounts integrate your banking, broking and demat accounts. This enables you to trade in shares without going through the hassles of tracking settlement cycles, writing cheques and Transfer Instructions, chasing your broker for cheques or Transfer Instructions etc.

2. Speed: You can now get the latest quotes of scripts on ICICIdirect.com and place an order almost instantly.

3. Control: You can be assured that you have in fact placed an order at the price you always wanted to, but may not have been able to do so till now. Thereby giving you control over your own trades.

4. Independence: Instead of transferring monies to a broker's pool or towards deposits, you can manage your own demat and bank accounts when you trade through ICICIdirect.com.

Brokerage structure of ICICIdirect.com

The account opening charges for Idirect account is Rs. 750.

ICICIdirect.com provides savings account, trading account, demat account. In which savings account has zero balance facility. And company also provides Debit card for annual charges of Rs. 99 per card.

Following are the brokerage structure for different products. 1. Cash transaction and BTST: -

Total eligible Brokerage (% of Brokerage (for Effective brokerage

turnover transaction value) squared off order) (for squared off

order)

Above 5 crores 0.25% Nil 0.125%

2 crores to 5 crores 0.30% Nil 0.15%

1 crores to 2 crores 0.35% Nil 0.175%

50 lakhs to 1 crores 0.45% Nil 0.225%

25 lakhs to 50 lakhs 0.55% Nil 0.275%

10 lakhs to 25 lakhs 0.70% Nil 0.35%

Less than 10 lakhs 0.75 Nil 0.375%

The minimum value of the order that will be accepted is 500rs.

2. Margin and margin plus: -

Total eligible turnover Margin and margin plus

Above 20 crores 0.03%

10 crores to 20 crores 0.035%

5 crores to 10 crores 0.04%

Less than 5 crores 0.05%

3.Cash on spot: - 1%4. Futures and options: -

Futures Options

Total eligible Brokerage Effective Total eligible Brokerage Effect

turnover (%of brokerage turnover (rupees) tive

transaction (for squared broker

value) off order) age

(for

square

doff

order)

rupees

Above 20 crores 0.03% 0.015% Above 20 lakhs 65 32.5

10 crores to 20 0.035 0.0175 10 lakhs to 20 lakhs 70 35

crores

5 crores to 10 crores 0.04 0.02 5 lakhs to 10 lakhs 75 37.5

Less than 5 crores 0.05 0.025 2 lakhs to 5 lakhs 85 42.5

Less than 2 lakhs 95 47.5

SERVICE TRANSACTION TAX (STT)

STT at the rate of 0.125% of the turnover will be charged in addition to the brokerage on all delivery trades.

STT at the rate of 0.025% of the turnover will be charged in addition to the brokerage on non- delivery trades.

STT at the rate of 0.017% of the turnover will be charged in addition to the brokerage on sell trades.

Profile of the Organisation3.1 DEPARTMENT/FUNCTIONAL AREAS

Infrastructure financing, corporate financing and retail have been the strong pillars of ICICI's growth. They expect these to remain thrust areas in the future too. The financial institution sees significant opportunities in the power sector, and in the rapid de-regulation of the Telecom sector. On the retail side, ICICI has established a retail franchisee through a physical presence across 42 cities. Its retail thrust has been on the planks of technology enabled low cost distribution channels like the Internet, Call centers and ATMs.

It occupies the number one position in automobile financing (over 20% of the market share), number one in credit cards on an incremental basis. It also has a growing presence in home finance and on-line trading.

ICICI Bank

ICICI Bank is a commercial banking outfit set up by the ICICI Group. The Bank was registered a banking company on January 5th, 1994 and received its banking license from the Reserve Bank of India on May 17th, 1994. The Bank has an authorized capital of INR 300crore (USD 75.96 million), of which subscribed and paid-up capital is INR 165 crore (USD 41.78 million). The first ICICI Bank branch was started in Madras in June 1994. The branches are fully computerized with state-of-the-art technology and systems. All of them are fully networked through V-SAT (Satellite) technology. The Bank is connected to the international SWIFT network since March 1995. ICICI Bank offers a wide spectrum of domestic and international banking services to facilitate trade, investment, cross-border business, and treasury and foreign exchange services. This is in addition to a whole range of deposit services offered to individuals and corporate bodies. ICICI Banks Infinity was the first Internet banking service in the country, and a prelude to banking in the next millennium. Currently the Bank has around 150,000 customers.iCICI Venture Funds Management Company LimitedWith the recent spurt in entrepreneurship in the country, venture capital and private equity capital financing are fast attaining a role of prominence. Uniquely positioned to take the Indian entrepreneur further is ICICI Venture Funds, the wholly owned subsidiary of ICICI, with its keen understanding of the Indian Financial Markets, entrepreneurial ethos, access to global capital and a network through influential global alliances. Strong parentage and affiliates provide ICICI Venture with access to a broad spectrum of financial and analytical resources. An affiliation with (Trust Company of the West) provides a platform for networking Indian Companies to global markets and technology. ICICI Venture Funds currently manages / advises 11 Funds aggregating US$ 400 million, making it the most significant private equity investor in the country. The investment experience of ICICI Ventures professionals is the foundation its strengths and success in several areas of investing. ICICI Venture seeks to invest in opportunities where its network through ICICI and TCW can create value for all involved. ICICI Ventures primary investment objective is capital investment through investments by way of equity or equity-related securities in unlisted companies with significant growth potential. ICICI Ventures investments span a broad spectrum of industries and stages of development, the investment focus being on

Information Technology

Biotechnology and Life Sciences

Media and entertainment

Retail Services

ICICI Securities and Finance Company Limited

Formed in 1993 when ICICIs Merchant Banking Division was spun off into a new company, I-SEC today are Indias leading Investment Bank and one of the most significant players in the Indian capital markets. Its client list includes some of the best known, most respected names in Indian business and industry, and I-SEC offers them what are probably the widest, most in-depth range of services in the market, with the highest standards of professionalism. Backed by a strong distribution network, I-SEC is acknowledged to be at the forefront of all new developments in the Indian debt market. I-SEC Research Reports, Compendia, Updates, I-BEX and sovereign Bond Index, have become industry standards, sought after by finance, business and reputed publications alike. The Project Finance Group has helped take strategic projects from the drawing board to financial closure, leveraging the expertise of parent organization. I-SEC has also executed several assignments in M & A, including business valuations, spin-offs and mergers, for both domestic and overseas clients. The range of products offered by i-SEC includes:

Corporate Finance Mergers and Acquisitions, Equity, Bidding (especially for Telecom Projects)

Fixed Income Primary Dealership, Debt Research

Equities Lend management, Underwriting, Syndication, Private Equity placement, Sales, Trading, Broking, Sectoral and Company Research I - SEC

Continues to sustain a steady rate of growth by offering the most extensive range of services combined with unrivalled standards of professionalism.

ICICI Brokerage Services Limited

Set up in March 1995, ICICI Brokerage Services is a 100% subsidiary of I-SEC. It commenced its securities brokerage activities in February 1996 and is registered with the National Stock Exchange of India Limited and The Stock Exchange, Mumbai. We are a joint venture between ICICI and the leading financial services provider in India, and prudential plc of U.K., one of the finest Life insurance companies in the world. Together we provide you with an extensive range of insurance products to suit your various needs at various life stages. We aim to keep you covered, at every step in life. Their policies are need-specific and address particular age groups. This means that no matter where in life you are, we offer specific products to suit your needs for savings, protection and retirement. Our products can be categorized into the following:

Saving plans

Protection plans

Retirement plans

ICICI Personal Financial Services Limited

ICICI Personal Financial Services Limited (ICICI PFS), formerly ICICI-Credit, was one of the first four companies to obtain registration as a Non-Banking Financial Company (NBFC) from the Reserve Bank of India (RBI) on September 10, 1997 under the new section 45IA of the Reserve Bank of India Act, 1934. During the year 1998-99, there was a significant shift in the Companys operation from leasing to hire purchase to distribution and servicing of all rental products for the ICICI Group. It is now a focal point for marketing and distribution of all rental asset products for ICICI, including auto loans, consumer durable finance and other financial products. The Company has thus become part of ICICIs retail strategy aimed at offering a comprehensive range of products and services to retail customers. In view of this reorientation of the business, the name of the Company was changed from ICICI Credit Corporation to ICICI Personal Financial Services Limited (ICICI PFS) effective March 22, 1999.

ICICI Capital Services Limited

ICICI Capital Services Ltd. was incorporated in the name of SCICI Securities Ltd. on September 24, 1994 as a wholly owned subsidiary of erstwhile SCICI Ltd. with the objective of providing stock broking services to the institutional clients and undertaking activities such as underwriting, primary market placements & distribution industry & company research etc. After the amalgamation of SCICI with ICICI effective from April 1, 1996, resulting in the change of the name. The company is mandated, under review by ICICI, to carry out on its behalf the retail resource raising activities and to provide front office services related to all retail and semi retail liability products of ICICI. The company also operates the network of ICICI Centers being set up by ICICI. As on date the company has set up 91 centers across the country.

ICICI InfoTech

ICICI InfoTech is a leading provider of end-to-end IT solutions. We have an in-depth experience of having worked on varied technologies with leading corporations worldwide. Our service portfolio includes the following:

IS & IT Consulting

Software Design and Development

Enterprise Application Integration

Value Chain Management Solutions (SCM, CRM etc.)

Application Re-engineering and Management

Knowledge Management Solutions

Embedded System Applications

Technology Incubation, IT-enabled Services & IT Outsourcing

ICICI Capital Ltd.

Its products are

RBI Bonds E-invest (ICICI Direct.com) Fixed Deposits Mutual Funds Bonds Demat Equity IPO ICICI Direct.com (online share trading):

ICICI Direct.com is a truly online share-trading site. Which means that from the time you punch in a buy or sell trade on your computer to the final settlement in your account, everything happens completely online? The 3-in-1 e-invest account integrates your brokerage, bank and one or more depository accounts to make sure that you can do the otherwise cumbersome share trading from the comfort of your home or office, at absolutely any time of the day or night

3.2 PERFORMANCE AND OPERATIONS

The Sales turnover of the Company during the year was Rs.2,602 million. There is a decrease of 4% from the previous year. Decline in the sale of Carburettors for two wheelers and four wheelers had contributed to the overall sales downturn though the Company has improved the sale of MPFI parts to passenger cars.

The profit after tax of the Company for the year under review is Rs.377 million Due to inclusion of an extraordinary profit of Rs.250 million on sale of investments, the Profit after Tax has registered an increase of 42% compared to previous year. The profit from the manufacturing activities of the Company is lower mainly due to

a. price reduction offered to customers

b. increase in the input and raw materials cost

c. a particular customer in the two wheeler market witnessed a steep decline in the sale of a model for which UFSL is supplying the Carburettors

Key Ratios 2005-06 2004-05

Net Profit Ratio (PAT/Sales) 14.49 9.49 Net Profit Ratio (PAT/Net worth) 22.21 18.13 Current Ratio (Current Assets/Current Liabilities) 1.67:1 2.55:1 Debt - Equity Ratio 0.47:1 0.04:1 Debtors Turnover (Debtors/Gross Sales) 1.18 Months 1.25 Months Creditors Turnover (Creditors/Purchases)1.86 Months 1.59 Months Dividend Pay-out Ratio 17 15.37

. 3.3 SWOT ANALYSIS OF THE COMPANY:

Strengths

1. Management philosophy and commitment to maximize shareholders returns

2. Upgraded product design and development facilities to develop new products and aid diversification

3. Ongoing activities to support up gradation of operational performance and rise in productivity

4. Team of talented and committed professionals available to improve companies performance Weakness

1. Competition from cheap imports

2. Low customer base

Opportunities

1. UFSL has initiated development of products for diesel application. This will provide tremendous scope for diversification and growth

2. Acquisition of AMTEC to provide opportunities to access global OEMs

3. Opportunity to support AMTECs operations by supplying products from India

4. The introduction of new emission norms will provide UFSL opportunity to develop injection systems and thereby upgrade the status of the company from product to system supplier.

Threats, Risks & Concerns

1. Constant pressure to be cost competitive to meet customer expectations

2. Relentless pressure to maintain profitability due to rising input/raw material prices

3. Increasing popularity of alternative fuel vehicles, such as Hybrid, Hydrogen powered, CNG and LPG vehicles poses new challenges for the company

.

3.4 FUTURE PROSPECTS AND PLANS OF THE ORGANIZATION

For ICICI the past half has been a trying period more so because of the adverse environmental conditions such as the depressed equity markets and the volatile currency markets. However, its retail thrust and a perceptible shift in financing from manufacturing projects to corporate finance will put it in good stead for the quarters to come. Its growing importance in the telecom and infrastructural sectors, which have huge potential, will be a key driver of growth for the future

Board of directors of ICICI securities limitedICICI SECURITIES PRIMARY DEALERSHIP LIMITED Mr.S.Mukherji,chairman

Nitin Jain,Managining irectore & CEO

Ms.Vishakha Mulye

Mr.A.Murugappam

Mr.Subir Saha

Mr.Uday Chitale

ICICI SECURITIES LIMITED

Mr.K.V. Kmath, Chairman

Mr.S. Mukherji, Managinig Directore & CEO

Ms. Kalpana Morparia

Mr.V. Vaidyanathan

Mr.Nitin Jain

Mr.Paresh Shah

Mr.Uday Chitale

ICICI Securities Holdings,Inc.

Mr.Gopakumar P.

Mr.Nitin Jain

Mr.Subir Saha

Mr.A.Murugappan

ICICI Securities INC. Mr.Gopakumar P.,Presiddent

Mr.Nitin Jain

Mr.Subir Saha

Mr.A.Murugappan

Mr.Anup Bagchi

What is all about ICICI securities limited?General Information

Name :ICICI SECURITIES LIMITED

HEAD OFFICE :ICICI SECURITIES LTD.

2ndFLOOR,STANROSE HOUSE

APPASAHEB MARATHE MARG

PRABHADEVI MUMBAI-400025

TYPE OF BUSINESS :LIMITED COMPANY

PHONE NO :+91 22 6651 1200

FAX NO

:+91 22 6651 1451WEB SITE : www.icicisecurities.com

www.icicidirect.comBRAND NAME FOR ONLINE TRADING:

CHIEF EXECUTIVE OFFICER : ANIL KAUL

BRANCH IN WHICH TRAINING PERSUDED: BABUBHAI CHAMBERS-1-2-3 ATHWAGATE,

OPP. lOLLY PLAZA

B/H ASIAN SKY SHOP SURAT

HEAD OF THE BRANCH :SUBHENDU DAS (AREA MANAGER)

Integrated Equity Solutions Provider

Among the top branded retail service providers

Multi channel access to clients

Tailor made research and products

Depository Services

Derivatives

Innovative product for enhanced performance

Best research team in the world

About ICICI SECURITIES LIMITED

ICICI securities ltd named its online division as ICICI direct.com and it is into retail Broking

The business of the company overhauled 6 years ago in 2002.

It acts as a discount brokerage house to a full service investment solutions provider

It has specialized research product for the small investors and day traders

Largest chain of Total centers office 356, Region office 23, Total hub office 46, 150 education workshop, and offices in 860 cities all across India.

Leading player today with

The site was also launched in 2002 and named it as www.icicidirect.com

It offers its customers with the trade execution facilities on the NSE and BSE, for cash as well as derivatives, cash, margin trading, margin plus, BTST (buy today sell tomorrow), cash on spot, IPOs, mutual funds, Gal bonds, postal services, insurance of icici group (icici prudential life insurance and icici Lombard general insurance).

ICICldirect.com is a India's first largest B2C Ecommerce site.

First to launch: -

1. Digitally signed contract notes in India.

2. Online IPOs in India

Leader in online trading in India (largest number of clients, transactions, products.

Safest transaction capabilities varisign (secured stock layer with 128-bit enruption.

Seamless trading environment (completely online integrated offering)

AWARDS AND ACHIEVEMENTS

1. ICICI direct.com is awarded the " Most Preferred Brand in Financial Advisory Services" in the CNBC awaaz consumer Award 2007. The Nielsen Company conducts this survey -worlds foremost market research firm conducted study covering more than 10000 consumers across 42 segments in 21 cities and 13 small towns in 14 states across India.

2. IBA (INDIAN BANK ASSOCIATION) business technology awards 2006 for improved customer experience and to gain competitive advantage are recognized for awards.

3. IBA (INDIAN BANK ASSOCIATION) business technology awards 2007 for best online trading platform provide

4. Fast web genius of the web awards 2007 for online trading.

5. Out Look Money NDTV Profit award 2007 for Best ebrokerage.

6. TXAI- highest broker ranking by CRISIL- ability to ICICI direct to servIces capital market broking transactions is highest.

7. Awarded Asia's first web seal by KPMG a seal of assurance awarded to companies in the Internet world with control conscious business operations.

8. ICICI direct has the largest number of customers- SEBI

9. ICICI direct's transparency, ease of trading and technology initiatives has made in the leader in Indian online trading market- capital market.

10. " The Largest Online broker by customer trades and market share - BUSINESS INDIA.

SEVEN P'S OF ICICI securities limited

./ PRODUCT

Product Variety

ICICI securities limited offer 3 in 1 online trading accounts for its customers specially designed according to their volume in share trading. Those 3 varieties are:

Trading account

Demate account

Savings account

Quality

User Friendly, attractive & colorful Website.

Design

The website of ICICI securities limited namely www.icicidirect.com has been specially designed to facilitate its users to buy and sell shares in an instant at anytime and from anywhere they like. The site is user friendly allowing even a layman to easily operate without any hassles.

Brand Name

The company as a whole in its offline business has named itself as ICICI securities limited. The company has preferred to name themselves under a ICICI group company

But in its online division started since 2000, the company preferred to name itself as "ICICIDlRECT.COM". The Brand Name "ICICIDlRECT.COM" itself suggests the business in which the company is dealing so that the consumer could easily identify the product or service category.

Services

ICICI securities limited offers its customers, depository services and trade execution facilities for equities, derivatives and commodities backed with investment advice tempered by decades of broking experience. The teams of its dedicated analysts are constantly at work to track performance and trends.

../ PRICE

+:+ List Price

Online opening charges: - 750 Rs.

Annual maintenance charges: - 500 Rs. Per annum .

./ PROMOTION

Online share trading is totally a new concept in Indian Market. Generally investor doesn't like to come out from conventional way of share trading. ICICI securities limited have introduced this product in India. The concept and Product are still new in the market. Therefore the company has undertaken extensive promotion campaign to create awareness about the product. ICICI securities limited adopt the following tools for promoting the product.

+:+ Advertising

Company advertises its product through TV media on channels like CNBC, Print Mediain leading dailies and outdoors media. It advertises itself as an innovative Brand for online trading. Besides attractive and colorful brochures as well as posters are used giving full details about the product. Mails are sent to people logging on to sites like moneycontro1.com and rediff.com.Also; stalls are opened up now and then at places where prospective customers can be approached.

+:+ Sales Promotion

The Company offers account opening charge Rs.1 instead of Rs.750 for corporate accounts (more than 20 accounts) for companies like Essar, Reliance, and Kribhco, ongc etc.

+:+ Sales Force

The Company has an aggressive sales force, which is given incentives, based on their sales. The sales force is given intensive training continuously to their agents every week on Tuesday.

+:+ Seminar

The Company also arranges seminar in corporate world for creating awareness about the product. Recently, it had organized for a seminar in Ongc, Reliance, Kribhco, Pantaloon, Bigbazar, and GEB etc.

.:. Direct Marketing

Company emphasizes more on direct marketing, as many people are still not aware of this new way of smart trading. For this, the company recruits and trains sales representatives so as to explain the product and solve customer queries related to the product. This is the most effective way to communicate the three-in-one concept which company offers .

:. Telemarketing

This is another promotional tool company is using to boost up its sales. For this, the company collects the database of the people belonging to different professional segments .

./ PLACE

.:. Channels

ICICI securities limited uses various channel alternatives to reach to its customers

through

~ Internet

~ T ele Marketing

~ Retail Share Shops ~ Franchisee Owners

~ Power Brokers

~ Sales Force

.:. Coverage

Access to the website from any part of the globe .

:. Locations

ICICI securities limited have the largest chain of retail share shops in India. It has centers office 356, Region office 23, Total hub office 46, 150 education workshop, and offices in 860 cities located in all over India like Pune, Thane, Chennai, Kolkatta, Bangalore, Luckhnow, Darjleeng, Kanpur, Baroda, Midnapore, Surat, Delhi, Gaziabad, Hydrabad, Allahbad, etc./ PEOPLE

.:. Employees

~ Selection: Employees are selected on the basis of their experience and qualification as applicable to the job.

~ Training: Intensive training is provided to the employees till a week once they join and even at times required after that.

~ Motivation: The employees are motivated through incentives they are provided .

:. Research Team

ICICI securities limited has a team of dedicated analysts who have years of working experience in the industries that they track, and a proven track record in using their knowledge of the investment science to deliver results .

:. Customers

The heart ofICICI securities limited is really treated loyally like the kings. The customer care, which comprises of highly trained executives operating from 9:30 to 8:00 p.m .

../ PHYSICAL EVIDENCE

.:. Locality of the office:

In Surat, three franchise outlets are located in posh areas like Athwagate, Ring road, and Cinema road. And more offices are opened soon .

:. Office Environment:

The ambience within the office is what can make the customer feel comfortable in trading. The cordial and friendly atmosphere at office is like a full time motivation for the employees./ PROCESS

.:. In this service organization, the ways in which the customers receive delivery of the service constitutes the process. Here, the process involves adding 'value' or 'utility' so that the customers get full satisfaction for the money spent by them .

:. Here the process begins from the step when customer wants to open online trading account and ends when his account is actually activated .

:. All Indian residents and NRI are eligible to avail this service .

:. Customers can open online trading account by filling a single application form.

Our Fixed Income team for the last two years (CY 2004 and 2005) has been adjudged the Best Bond House in India by both Asiamoney and Finance Asia. The equities team was adjudged the Best Indian Brokerage House-2003 by Asiamoney. The Corporate Finance team, according to Bloomberg topped the M&A league tables in 2003.

Problem Anlysis:

4.1 STATEMENT OF THE PROBLEM

Online trading and Demat are the two emerging concepts in the stock market. It involves personal factors, technical factors, business factors and economic factors. The interplay of these factors on stock market requires a deep study about the pattern process and procedures and performance. This study is intended to identify the various concepts about demat and the online trading and its way of functioning

ICICI provisions are not exposing to its customers extensively. Hence in this report an attempt has been made to link the potential customers and the ICICI Direct .Com4.2 OBJECTIVES OF THE STUDY

Every company has a particular goal. A study without objectives can not reach the destination. My project work programme was also directed to some particular targets and the main objective of the study are as bellow;

Study of ICICI Direct.com (online share trading)

Study of dematerialization in ICICI Capital Ltd.

Customers satisfaction and awareness of ICICI Capital Services Ltd.

4.3 SCOPE OF THE STUDY:Globalization of the financial market has led to a manifold increase in investment. New markets have been opened; new instruments have been developed; and new services have been launched. Besides, a number of opportunities and challenges have also been thrown open. RESEARCH DESIGN OF THE STUDYThe study is based on survey technique. The study consists of analysis about customers awareness and satisfaction of ICICI Capital Ltd. For the purpose of the study customers 100 are picked up and their views solicited on different parameters. The methodology adopted includes

Questionnaire

Random sample survey of customers

Discussions with the concerned

Personal interviews and informal discussions were held with ICICI Capital Ltd. customers to ascertain the awareness and satisfaction level. Further applying simple statistical techniques has processed the data collected.

SOURCES OF DATA :

Primary data: Questionnaire Secondary data: are published materials such as periodicals, journals, news papers, and website. SAMPLING PLAN:

Sampling since segment wise investors in ICICI Capital Ltd. are not available for the overall customers was considered for the study. 100% coverage was difficult within the limited period of time. Hence sampling survey method was adopted for the purpose of the study. Population: (universe) customers of ICICI Capital services Ltd. Sampling size: A sample of hundred was chosen for the purpose of the study. Sample considers of small investor, large investors and traders of ICICI Capital Ltd. Sampling Methods: Probability sampling requires complete knowledge about all sampling units in the universe. Since due to time constraint non-probability sampling was chosen for the study. Sampling procedure: From large number of customers of ICICI Ltd. were randomly picked up. Field Study: directly approached respondents.4.4 DATA COLLECTION INSTRUMENTCollection of data through Questionnaires:

The data collected for the study purpose is through questionnaires. Hundred customers of ICICIdirect.com have been selected randomly for the study purpose and then the information revealed from the customers is analyzed and interpreted in the study.

ORGANISATION OF FIELD WORK

Initial field work has done for pre testing tools for data collection. The data is collected through the direct interaction with the ICICIs customers through questionnaires answered by them. hundred customers of ICICI were randomly chosen for the purpose of the study in Surat..

4.5 Limitation of Study Since sample size is only 100, which is not a true representative of the population as a whole.

Since segment wise investors is not available in ICICI Capital Ltd. Overall concept is taken for the study.

Information is partly based on secondary data and hence the authentic of the study can be visualized and is measurable.

Level of accuracy of the results of research is restricted to the accuracy level with which the customers have given their answers and the accuracy level of the answers cannot be predicted.

Data Analysis and Interpretation

Table No. 5.1 Customers preference over other depository services in ICICI Direct.com

AttributesNo. of PersonsPercentage

Quality Service5050

Safety2020

Reach1212

Vast variety of Service44

Nothing in Particular1414

Chart No. 5.1 Percentage of customers preference over other depository services in ICICI Direct.com.

From the above showing statistics it is observed that in the survey 50% customers justify that ICICI capital Ltd. providing quality services as compare to other depository servicesTable No. 5.2 Different types of investors having ICICI Direct.com.

Small InvestorsLong term investorsTraders

5832

10

Chart No. 5.2 Percentage of investors having ICICI Direct.com.

The above table shows that out of 100 customers, 58 customers are small investors and 32 customers are long term investors.

Table No. 5.3 Number of availed of the services in ICICI Direct.com.

Schemes/ServicesNo of PersonsPercentage

ICICI Direct.com3232

Settlement 99

Transmission of Securities2323

New Services

Sell 'N' Cash55

Mutual funds3131

Chart No. 5.3 Percentage of availed of the services in. ICICI Direct.com

Table No. 5.4 Number of customers aware of services offered by ICICI Capital Ltd.

Schemes/ServicesNo of Persons Percentage

ICICIDirect.com100100

Settlement7070

Transmission of Securities6464

New Services

Sell 'N' Cash5656

Mutual Fund1836

Loans Against de-mat shares2448

Chart No. 5.4 Percentage of customers aware of services offered by ICICI Capital Ltd.

Table No. 5.5 Customers awareness of the new services offered by ICICI Direct.com

Through ICICI Direct.ComNews Paper/ MagazinesBrokerAgentsOthers

50108320

50%10%8%32%0

Chart No. 5.5 Percentage of customers awareness of the new services offered by ICICI Direct.com

According to the survey 50% customers know the services through ICICI and 32% through ICICI agentTable No. 5.6 Customers first source of awareness

Through ICICI Direct.ComNews paper / MagazinesBrokerAgentsOthers

341214346

34%12%14%34%6%

Chart No. 5.6 Percentage of customers first source of awareness

According to the survey the first source of information is ICICI Direct.Com itself and the agents.

Table No. 5.7 Customers satisfaction of the services of ICICI Direct.Com

SatisfiedMostly Satisfied Neither Satisfied / UnsatisfiedMostly UnsatisfiedUnsatisfied

64241020

64%24%10%2%0

Chart No. 4.7 Percentage of customers satisfaction of the services of ICICI Direct.ComAccording to survey 64% of customers are satisfied with the services of ICICI Direct .com and 24% are mostly satisfied. Then we can say that ICICI Direct.Com offers quality service that touches customers satisfaction level.

Table No. 5.8 Customers satisfaction of the Demat services of ICICI Direct.Com

SatisfiedMostly Satisfied Neither Satisfied / UnsatisfiedUnsatisfiedMostly Unsatisfied

462216124

46%22%16%12%4%

Chart No. 5.8 Percentage of customers satisfaction of the Demat services of ICICI Direct.Com

According to the survey 46% are satisfied with the Demat Services of the ICICI Capital Ltd. 12% of the customers are not satisfied. So we can say ICICI Direct.Com offers quality services in Demat section also.Table No. 5.9 Customers satisfaction with the purchase and sales of ICICI Direct.ComSatisfiedMostly SatisfiedNeither Satisfied/ UnsatisfiedMostly UnsatisfiedUnsatisfied

402614812

40%26%14%8%12%

Chart No. 5.9 Percentage of customers satisfaction with the purchase and sales of ICICI Direct.Com

According to the survey only 40% of the customers are satisfied with Purchase and Sales of ICICI Direct.Com. So we can say purchase and sales section ICICI Direct.Com unsatisfied the customers.Table No. 5.10 Customers satisfaction with the transmission of securities of ICICI Direct.Com

SatisfiedMostly SatisfiedNeither Satisfied/ UnsatisfiedMostly UnsatisfiedUnsatisfied

302232124

30%22%32%12%4%

Chart No. 5.10 Percentage of customers satisfaction with the transmission of securities of ICICI Direct.Com

According to the survey 30% of the customers are satisfied and 22% of the customers are mostly satisfied with the transmission of securities of ICICI Direct.Com. So we can say that ICICI Direct.Com unsatisfied the customers in case of transmission of securities of the customers.

Table No. 5.11 Customers satisfaction with the sell of their securities in cash


70201000

70%20%10%00

Chart No. 5.11 Percentage of customers satisfaction with the sell of their securities in cash

According to the survey 70% of the customers are satisfied with the sell in cash system of ICICI Capital Ltd. So we can say that ICICI Direct.Com satisfied the customers with the sell of customers securities in cash.

Table No. 5.12 Customers satisfaction with the mutual fund service of ICICI Capital Ltd.SatisfiedMostly SatisfiedNeither Satisfied/ UnsatisfiedMostly UnsatisfiedUnsatisfied

38342440

38%34%24%4%0

Chart No. 5.12 Percentage of customers satisfaction with the mutual fund service of ICICI Capital Ltd.

According to the survey, 38% of the customers are satisfied with the Mutual fund services of ICICI Capital Ltd. So we can say that customers tendency is that they believe that Mutual Fund and Shares are performing as the same in the primary and secondary market and the mutual fund is the safest way to invest in the market.

Table No. 5.13 Customers satisfaction with the trading demos provided by the ICICI Capital Ltd.


52242040

52%24%20%4%0

Chart No. 5.13 Percentage of customers satisfaction with the trading demos provided by the ICICI Capital Ltd.

According to the survey 52% of the customers are satisfied with the Trading Demos that are conducted by the ICICI Capital Ltd. 24% are mostly satisfied. So we can say that ICICI customers are attending the demo programmes and the ICICI employees can able to solve the queries of the customers.

Table No. 5.14 Customers satisfaction with the periodic receipts and holding statements of ICICI Direct.Com


2018163214

20%18%16%32%14%

Chart No. 4.14 Percentage of customers satisfaction with the periodic receipts and holding statements of ICICI Direct.Com

According to the survey, the 20% customers are satisfied and 18% customers are mostly satisfied with the periodic receipts and holding statements of the ICICI Direct.Com. So, we can say that most of the customers are unsatisfied with this service of ICICI Direct.Com.Table No. 5.15 Customers satisfaction with the telephonic enquiries of ICICI Capital Ltd.


1648121410

16%48%12%14%10%

Chart No. 5.15 Percentage of customers satisfaction with the telephonic enquiries of ICICI Capital Ltd.

According to the survey, 48% of the customers are mostly satisfied and 16% of the customers are satisfied. So, we can say that most of the customers are satisfied with the telephonic service of ICICI Capital Ltd.Table No. 5.16 Customers satisfaction with the co-operation by the staff of ICICI Capital Ltd.


32464144

32%46%4%14%4%

Chart No. 5.16 Percentage of customers satisfaction with the co-operation by the staff of ICICI Capital Ltd.

According to the survey, 32% of the customers are satisfied and 46% of the customers are mostly satisfied with the co-operation by the staff of ICICI Capital Ltd. So, we can say that most of the customers are satisfied with the co-operation by the staff of ICICI Capital Ltd.

Table No. 5.17 Customers satisfaction with the tariff structure of ICICI Direct.Com

Very HighHighReasonableLowVery Low

12147220

12%14%72%2%0

Chart No. 5.17 Percentage of customers satisfaction with the tariff structure of ICICI Direct.Com

According to the survey, the tariff structure of ICICI Direct.Com is reasonable. Customers told me that the brokerage of 0.75% is reasonable because it is the only organization which deals with the primary and secondary market both. ICICI Direct.Com also has many investment options than any other organization.

Table No. 5.18 Customers satisfaction when dealing with the problems through ICICI Direct.Com

Schemes / ServicesNo of PersonsPercentage

Frequent reminders are given to ICICI Direct.com for update the information2424%

Irregular receipt of Holding / Transaction statements 2222%

Improper format of Holding / Transaction statements 1616%

Improper attention given to the enquiries 1414%

Billing problem1010%

Inadequate information 1414%

According to the survey, 12 persons are not satisfied with the frequent reminders which are given to the ICICI Direct.Com for update the information, 11 persons are not satisfied with the irregular receipt of holding or transaction statement, 8 persons are not satisfied with the format of holding or transaction statements, 7 persons are not satisfied attention given to the enquiries, 5 persons are not satisfied with the billing system and 7 persons are not satisfied with the information provided by the ICICI Direct.Com. So, we can say that these systems should be changed or modified by the ICICI Direct.com.

Table No. 5.19 Customers rating of the services of ICICI Direct.Com

00182840

0%20%40%60%80%100%

0036%56%8%0

Chart No. 5.18 Percentage of customers rating of the services of ICICI Direct.Com

According to the survey 56% of the customers said that ICICI Direct.Com services are providing only 60% of its services to its customers. So we can say that ICICI Direct.Com services should be increased to please its customers.

Table No. 5.20 Customers preference for ICICI Direct.Com over its competitors

Quality ServiceRates chargedNothing in ParticularSafetyReach

52102486

52%10%24%8%6%

Chart No. 5.19 Percentage of customers preference for ICICI Direct.Com over its competitors

According to the survey 52% of customers justify their preferences for ICICI Direct.com for quality services, 10% for rates charged and 8% for safety. So, we can say that ICICI Direct.Com provides quality services than its competitors. But in case of rate charges and safety ICICI Direct.Com is behind its competitors.

Table no. 5.20 Customers awareness of the products of ICICI Capital Ltd.

ProductsTick%

ICICI Bonds100100

ICICIDirect.com9090

Mutual Fund7878

Equity IPO7474

Fixed Deposit8888

RBI Bonds8282

Chart No. 5.21 Percentage of Customers awareness of the products of ICICI Capital Ltd.

According to the survey most of the people know all the products of ICICI Capital Services Ltd. Only the customers do not know few products. 100% awareness is feasible in case of ICICI Bonds and 90% in case of ICICI Direct.com.

FINDINGS & CONCLUSION

6.1 FINDINGS ICICIdirect.com customers are more satisfied with the quality services. Holding securities in electronic form gives some far-reaching advantages to the investors.

ICICIdirect.com offers a wide choice of products for investing in the stock market. It allows to invest in shares, mutual funds and other financial products. With ICICIdirect.com one can manage own de-mat and bank accounts directly and independently.

The depository participant will allow an investor to trade through any broker of his choice registered with the stock exchanges connected with National Securities Depository Ltd, what will have to provide the details of investors account with Depository Participant.

Investor can click to get online information on their open orders and traders i.e. orders that are routed to exchange are waiting in the queue to be executed can be viewed for their status.

Transaction details for the traders done in the last month are available online.

Printed account statements too are available for earlier.

6.2 suggestions Some customers feel that they are trained for ICICI Direct.Com demo. Many customers feel that batch of 15 are good for ICICI Direct.Com training.

Survey reveals that most of the customers are not aware of the service of the Mutual Fund. ICICI Capital Services Ltd. and the normal tendency of the customer are both investing in shares and in Mutual Funds are one and the same. So for this ICICI Capital Services Ltd., should create an awareness of what exactly mean by Mutual Funds and all other services of ICICI Capital Services Ltd.

After getting the printouts of the holding statement, dispatch of the same should be taken place with no delay and this can be cross verified with the sender (dispatch section).

Customers are facing over crowding, non-availability of telephone lines, so proper measures should be taken to overcome these problems.

The ICICI official should conduct regular training demo classes for the new account holders.

6.3 CONCLUSION

Icici direct.com is performing very well in the field of online share trading business and having very good administration also.

Each departments doing their job very well comparing to the standard performance fixed by the management and it leads to overall good performance of the company.

There existing a good relationship between employees and management

The management taking keen interest for finding their weakness and try their level best to overcome this weakness

bibliography

Books and journals:-

ICICIdirect.com broachers and leaflets

Periodical published by ICICI Capital Ltd.

Journals published by ICICI Capital Ltd.

Websites:-

www.hinduonnet.com/businessline/iw/2001/05/27/stories/07276053.htmwww.cdslindia.com/FAQ/demat.htmwww.nsdl.co.in/services/demat.phpwww.sebi.gov.in/faq/faqdemat.htmlQuestionnaireName:-E mail:.

1) How do you justify your preference for ICICI Capital Ltd. over other Depository Services?

Quality Service

Safety

Reach

Vast variety of Service

Nothing in Particular

2) What are the different types of investors having. ICICI Direct.com?

Small Investors Long term investors

Traders

3) In which scheme are you holding your shares in ICICI Direct.com.?

ICICIDirect.com

Settlement

Transmission of Securities

Sell 'N' Cash

Mutual funds

4) Do you aware the services offered by. ICICI Direct.com?

ICICIDirect.com

Settlement

Transmission of Securities

Sell 'N' Cash

Mutual Fund Loans Against de-mat shares

5) If you are aware of the new services offered by ICICI Direct.Com then how did they come to know about it?

Through ICICI Direct.Com News Paper/ Magazines

Broker Agents

Others

6) If you are not aware of the new services then who / what do you think should be the first source of information?

Through ICICI Direct.Com News Paper/ Magazines

Broker Agents

Others

7) Are you satisfied with the services of ICICI Direct.Com?

Satisfied Mostly Satisfied

Neither Satisfied / Unsatisfied Mostly Unsatisfied

Unsatisfied

8) Are you satisfied with the Demat services of ICICI Direct.Com?



Unsatisfied

9) Are you satisfied with the purchase and sales of ICICI Direct.Com?



Unsatisfied

10) Are you satisfied with the transmission of securities of ICICI Direct.Com?



Unsatisfied

11) Are the customers satisfied with the sell their securities in cash?



Unsatisfied

12) Are the customers satisfied with the Mutual Fund service of. ICICI Direct.com?



Unsatisfied

13) Are you satisfied with the trading demos provided by ICICI Direct.com.?



Unsatisfied

14) Are you satisfied with the periodic receipts and holding statements of ICICI Direct.Com?



Unsatisfied

15) Are the customers satisfied with the telephonic enquiries of ICICI Direct.com? Satisfied Mostly Satisfied


Unsatisfied

16) Are the customers satisfied with the co-operation by the staff of ICICI Direct.com.?



Unsatisfied

17) Are the customers are satisfied with the tariff structure of ICICI Direct.Com?

Very High High

Reasonable Low

Very Low

18) Overall how the customers rate the services of ICICI Direct.Com?

0 % 20 %

40 % 60 %

80 % 100 %

19) How do the customers justify their preference for ICICIDirect.com over its competitors?

Quality Service Rates charged

Nothing in Particular Safety

Safety

20) Are the customers aware of the following products of ICICI Direct.com.?

ICICI Bonds ICICIDirect.com

Mutual Fund Equity IPO

Fixed Deposit RBI Bonds

21) Have the customers faced any problem while dealing through ICICI Direct.Com or customers are unsatisfied with the below mentioned schemes / services?

Frequent reminders are given to ICICI Direct.com for update the information

Irregular receipt of Holding / Transaction statements

Improper format of Holding / Transaction statements

Improper attention given to the enquiries

Billing problem

Inadequate information

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Through ICICI Direct.ComNews paper / MagazinesBrokerAgentsOthers

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Icici Direct Project Report

Documents

Transcript of Icici Direct Project Report