Investment Banking in India - Finanl Project

8/2/2019 Investment Banking in India - Finanl Project

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1 | I n v e s t m e n t B a n k i n g i n I n d i a

“INVESTMENT BANKING ININDIA”

IN PARTIAL FULFILMENT OF THE

REQUIREMENTS FOR MASTER’S DEGREE INFINANCE MANAGEMENT

2007-2010

ROLL NO. 35

LALA LAJPATRAI INSTITUTE OF MANAGEMENT,

HAJI ALI, MUMBAI.




DECLARATION

I hereby declare that this report, submitted in partial fulfillment of the requirement for the award

for the Masters of Financial Management, to Lala Lajpatrai Institute of Management is my

original work and not used anywhere for award of any degree or diploma or fellowship or for

similar titles or prizes.

I further certify that without any objection or condition I grant the rights to LLIM to publish any

part of the project if they deem fit in journals/Magazines and newspapers etc without my

permission.

Place : Mumbai

Date : ---------------------------------

Signature




PROJECT GUIDE CERTIFICATE FORM

I ASMIT NANDAJI MEJARI the undersigned Roll No. 35 studying in the Third Year of

MFM is doing my project work under the guidance of Dr./ Ms./ Mr. GANESH SHINDE wish

to state that I have met my internal guide on the following dates mentioned below for Project

Guidance:-

Sr. No. Date Signature of the Internal Guide

____________________________ __________________________

Signature of the Candidate Signature of Internal Guide




PROJECT GUIDE CERTIFICATE FORM

This is to certify that the dissertation submitted in partial fulfillment of the requirement for the

award of MFM of the University of Mumbai is a result of the bonafide work carried out by

Miss/Mr._________________________________________________________under my

supervision and guidance no part of this report has been submitted for award of any other degree,

diploma fellowship or other similar titles or prizes. The work has also not been published in any

scientific journals/ magazines.

Date: Name:

Place: Roll No.:

------------------------------ ---------------------------

(Director, LLIM) (Project Guide)




ACKNOWLEDGEMENT

I would like to thank ICICI Securities for providing us this unique opportunity of undertaking a

study on Functionality of Investment Banking. I would also like to thank Mr.Amod Bagwe &

Mr.Yogesh Solat, with whose active support and assistance I was always guided in the right

direction of my project and could achieve to complete it within the stipulated duration. It was

both, an enriching and a wonderful experience working with one of the leading and most

respected Investment Banking houses in India and I thank all the members of the organization

who have helped me during the project’s duration.

I am also obliged to Mr. Ganesh Shinde, my project mentor and faculty guide at college. I thank

him for his invaluable guidance and support in the project research.

Thanking You All,

Asmit Nandaji Mejari




INDEX

SR NO. PARTICULAR PAGE

1 EXECUTIVE SUMMARY 7

2 OBJECTIVE 8

3 RESEARCH METHODOLOGY 9

4 DATA COLLECTION 10

5 INTRODUCTION 11

6 DEFINITION 12

7 REGISTRATION OF INVESTMENT BANK 12

8 GRANT OF CERTIFICATE 13

9 REGISTRATION CHARGES 14

10 CONDITION OF REGISTRATION 14

11 CODE OF CONDUCT 15

12 OFFERING AND SERVICES OF INVESTMENT BANK 19

13 ORGANISATION STRUCTURE 22

14 CHINESE WALL CONCEPT 27

15 CASE STUDY : ADANI POWER IPO 28

16 CASE STUDY : ICICI SECURITIES 40

17 CONCLUSION 58

18 BIBILIOGRAPHY 59




EXECUTIVE SUMMARY

The project on “Investment Banking in India “ has been undertaken with a view to study the

overall investment banking industries in India and their products offering, services , operations ,

client management systems and other part of the industry.

In the above study, I have highlighted the key regulatory parameters regarding Investment banks

like Definition of Investment Banks, Registration of Investment Banks, Code of Conducts for

Investment Banks, Grant of Certificate, Registration Charges, Conditions of Investment Banks &

Function of Investment Banks. IPO Management is the one of the main function of Investment

Banks, so in the project I have taken Live cases like Adani Power IPO & ICICI Security as IB

for Case Study.

In ICICI Securities I had personally visited following department and find out the process of

their Role of their respective department.

Mutual Fund Operations

Risk Operations

DBC Operations

Human Resource, Legal & Compliance

Product Advisory Group

Equity advisory group

Sales Channles

Operation Control

Analytics & Marketing




OBJECTIVE

The main objective of the project is to :

Study the overall view of the Indian Investment Banks.

Study the Regulatory Requirement for Registration of

Investment Banks.

Know the Revenue (Brokerage / Commission) Generation

Pattern of the Investment Banks.

Know the Pre-Issue & Post Issue Management of IPO &

Process.




RESEARCH METHODOLOGY

The research methodology used for the project report is descriptive and research is

based on the Primary and Secondary data sources. These include “ADANI Power

IPO” & Offline IPO Bidding Manual Published by ICICI Securities at the time of

IPO for its Various Sales Channels like Sub-Broker, Center Sales & Retail

Channel, ICICI Direct Websites, ICICI Intranet and related statistics. As far as

other information is concerned I had personally visited the department & met

concerned people in various department, they explained to me the process and

responsibilities of the team. They helped me to understand the meaning &

relevance of each parameter considered in the project.




DATA COLLECTION

The objective of this exercise is to get the overview of the Investment Banking

Structures in India. I have collected the data from following data sources.

Data related to Registration, Functions, Code of Conducts of Investment

Banks taken from the SEBI Website and Investment Banking book of R

Machiraju.

Raw data related to Adani Power IPO and Bidding Manual process has been

collected from the ICICI Intranet Portal.

Data related to the ICICI Case studies collected from the various department

of ICICI Securities with the prior permission of department Head.




INTRODUCTION

Investment banks play a significant role in the financial services sector. However, Investment

banking, as advisory financial services, emerged rather late. Formal Investment banking service

in India originated with the setting up of the Investment banking division by the Grind lays Bank

in 1969 for undertaking management of public issue and financial consultancy, followed by other

foreign banks.

Pursuant to the recommendations of the Banking Commission (1972), State Bank of India started

Investment banking service in 1973. The ICICI Ltd was the first development finance institution

to initiate such service in 1974. The period following the mid-seventies witnessed a boom in the

growth of Investment banking organizations in the country which were sponsored by banks,

financial institutions, NBFCs Brokers and so on. This led to diversification into the scope of

these activities such as loan syndication, portfolio management, corporate counseling, project

counseling, debenture trusteeship, mergers, Amalgamations & takeovers and so on.

Investment banking is a particular form of banking which finances capital requirements of an

enterprises. Investment banking assists as it performs IPOs, private placement and bond

offerings, acts as broker and carries through mergers and acquisitions.

But the scope of such services was neither defined nor was a set of rules and regulations

governing them in place. The formation of SEBI in 1992 was a landmark in the evolution of

Investment banking as a professional service in the country. Investment banking organizations

have to be mandatorily registered with SEBI. While Investment bankers are currently providing a

variety of services, registration with SEBI is required for (i) Capital issues related activities :

both pre-issued and post-issue, (ii) mergers and acquisitions, and (iii) Portfolio Management.




DEFINITION

“A Investment banker is any who is engaged in the business of issue management either by

making arrangements regarding selling, buying or subscribing to securities or acting as

manager/consultant / advisors or rendering corporate advisory service in relation to such issue

management.”

REGISTRATION OF INVESTMENT BANK

Compulsory Registration:

Investment bankers require compulsory registration with the SEBI to carry out their activities.

They fall under four Registration categories

Category I – Investment bankers can carry on any activity related to issue management, that is ,

the preparation of prospectus and other information relating to the issue, determining the

financial structure, tie up of financiers, final allotment of securities, refund of the subscription

and also act as advisors, consultants, managers, underwriters or portfolio Managers.

Category II – Investment bankers can act as advisors, consultants , co-managers, underwriters

and portfolio Mangers.

Category III – Investment bankers can act as underwriters, advisors and consultants to an issue.

Category IV – Investment bankers can act only as adviser or consultant to an issue.

Thus, only category I Investment bankers could act as lead managers to an issue. With effect

from December 9, 1997, however, only Category I Investment bankers are registered by the

SEBI. To carry on activities as portfolio managers, they have to obtain separate certificate of

registration from the SEBI.




Net worth requirement for Registration is as follow:

Category I : Rs. 5,00,00,000

Category II : Rs. 50, 00, 000

Category III :Rs. 20, 00, 000

Category IV : Nil

GRANT OF CERTIFICATE

The SEBI grants a certificate of registration on consideration of all matters that are relevant to

the activities related to the Investment banker: (a) Investment bankers should also be a body

corporate other than a non-banking financial company. However, a Investment banker who has

been granted registration by the RBI to act as Primary Dealer may carry on such activity subject

to the condition that it would not accept / hold public deposit, (b) they are expected to have the

necessary infrastructure like adequate office space , equipment and manpower to effectively

discharge their activities (c) they should have employed at least two persons with experience to

conduct Investment banking business (d) any person directly or indirectly connected with the

applicant, (e) they fulfill the capital adequacy requirement of a minimum net worth of Rs. 5

Crore (f) partners, directors and principal offices should not be involved in any litigation

connected with the securities market, which has an adverse effect on their business (g) have

recognized professional qualification in finance , law or business management and or their

registration is in the interest of the investors and (h) the applicant is a fit and proper person. The

provisions of the SEBI criteria for Fit and proper person regulations discussed below would be

applicable to the applicants.




REGISTRATION CHARGES

An Investment banker has to pay to the SEBI

(i) Application fee of Rs.25,000;

(ii) Registration , Rs. 10 Lakhs and

(iii) Renewal fee of Rs. 5 lakhs every three years from the fourth year from the date of

initial registration.

CONDITIONS OF REGISTRATION

The Registration / renewal of certificate of the Investment banker would be subject to the

following conditions:

Prior approval of the SEBI would be necessary to continue to act as a Investment banker

after change of its status/constitution. Change of status / Constitution means any change

in status / constitution of whatsoever nature including (a) amalgamation/demerger

/consolidation / any other kind of corporate restructuring , (b) change in its managing

/whole – time directors and (c) any change in control over the body corporate. Change in

control means (i) if its shares are listed , change of control in terms of stipulations of the

SEBI takeover Regulations (ii) change in its controlling interest in any other case .

controlling interest means direct / indirect interest to the extent of at least 51 percent of

voting rights.

Enter into a legally binding contract with the issuer specifying their mutual duties and

responsibilities

Pay the registration / renewal fee in the prescribed manner.




Take adequate steps for redressal of investors grievances within one month of the

complaint and keep the SEBI informed about the number , nature and other particular of

such complaints together with the manner of their redressal.

Abide by the relevant regulations under the SEBI Act.

CODE OF CUNDUCT

1) Make all efforts to protect the interest of investors.

2)

Maintain high standards of integrity, dignity and fairness in the conduct of its business.

3) Fulfill its obligations in a prompt, ethical and professional manner.

4) At all times exercise due diligence, ensure proper care and exercise independent

professional judgments

5) Endeavour to ensure that (a) inquiries from investors are adequately dealt with; (b)

grievances of investors are redressed in a timely and appropriate manner ;(c) where a

complaint is not remedied promptly, the investor is advised of any further steps which

may be available to him under the regulatory system.

6) Ensure that adequate disclosures are made to the investors in a timely manner in

accordance with the applicable regulations and guidelines so as to enable them to make a

balanced and informed decision.

7)

Endeavour to ensure that the investors are provide with true and adequate information

without making any misleading or exaggerated claims or any misrepresentation and are

made aware of the attendant risk before taking any investment decision.

8) Endeavour to ensure that copies of the prospectus, offer document, letter of offer or any

other related literature is made available to the investors at the time of issue or the offer.




9) Not discriminate amongst its clients, save and except on ethical and commercial

considerations.

10) Not make any statement, either oral or written, which would misrepresent the services

that the Investment banker is capable of performing for any client or has rendered to any

client.

11) Avoid conflict of interest and make adequate disclosure of its interest.

12) Put in place a mechanism to resolve any conflict of interest situation that may arise in the

conduct of its business or where any conflict of interest arises, should take reasonable

steps to resolve the same in an equitable manner.

13) Make appropriate disclosure to the client of its possible source or potential areas of

conflict of duties and interest while acting as Investment banker which would impair its

ability to render fair, objective and unbiased services.

14) Always endeavor to render the best possible advice to the clients having regards to their

needs.

15) Not divulge to anybody either or in writing, directly or indirectly , any confidential

information about its clients which has come to its knowledge, without taking prior

permission of its clients, except where such disclosures are required to be made in

compliance with any law for the time being in force

16) Ensure that any change in registration status / any penal action taken by the SEBI or any

material change in the Investment bankers’ financial status, which may adversely affect

the interests of clients / investors, is promptly informed to the clients and any business

remaining outstanding is transferred to another registered intermediary in accordance

with any instructions of the affected clients.

17) Not indulge in any unfair competition, such as weaning away the clients on assurance of

higher premium or advantageous offer price or which is likely to harm the interests of




other Investment bankers or investors or is likely to place such other Investment bankers

in a disadvantageous position which competing for or executing any assignment.

18) Maintain arms length relationship between its Investment banking activity and any other

activity.

19) Have internal control procedures and financial and operational capabilities which can be

reasonably expected to protect its operations, its clients, investors and other registered

entities from financial loss arising from theft, fraud, and other dishonest acts, professional

misconduct or omissions.

20) Not make untrue statement or suppress any material fact in any documents, reports or

information furnished to the SEBI.

21) Maintain an appropriate level of knowledge and competence and abide by the provisions

of the SEBI Act / regulations / circulars and guidelines, which may be applicable and

relevant to the activities carried on by it.

22) Ensure that the SEBI is promptly informed about any action, legal proceedings, etc,

initiated against it in respect of material breach or non-compliance by it, of any law ,

rules, regulations , directions of the SEBI or of any other regulatory body.

23) (a) Not render, directly or indirectly, any investment advice about any security in any

publicly accessible media, whether real-time or non real-time , unless a disclosure of his

interest including a long or short position, in the security has been made, while rendering

such advice; (b) In the event of an employee of the Investment banker rendering such

advice, the Investment banker should ensure that such employee should also disclose the

interests, if any, of himself , his dependent family members and the employer Investment

banker, including their long or short position in the security , while rendering such

advice.




24) Demarcate the responsibilities of the various intermediaries appointed by it clearly so as

to avoid any conflict or confusion in their job description.

25) Provide adequate freedom and powers of its compliance officer for the effective

discharge of his duties.

26) Develop its own internal code of conduct its internal operations and laying down its

standards of appropriate conduct for its employee and officers in carrying out their duties.

Such a code may extend to the maintenance of professional excellence and standards,

integrity, confidentiality, objectivity, avoidance or resolution of conflict of interest,

disclosure of shareholding and interest etc.

27) Ensure that good corporate policies and corporate governance are in place.

28) Ensure that any person it employees or appoints to conduct business is fit and proper and

otherwise qualified to act in the capacity so employed or appointed.

29) Ensure that it has adequate resources to supervise diligently and does supervise diligently

persons employed or appointed by it in the conduct of its business, in respect of dealings

in securities market.

30) That the senior management, particularly decision makers have access to all relevant

information about the business on a timely basis.

31) Not be a party to or instrument for (a) creation of false market ;(b) price rigging or

manipulation or; (c) passing of unpublished price sensitive information in respect of

securities which are listed and proposed to be listed in any stock exchange to any person

or intermediary in the securities market.




OFFERING & SERVICES OF INVESTMENT BANKS

• Project Counseling:

Project counseling includes preparation of project reports, deciding upon the financing pattern to

finance the cost of the project and appraising the project report with the financial institutions or

banks. It also includes filling up of application forms with relevant information for obtaining

funds from financial institutions and obtaining government approval.

• Issue Management:

Management of issue involves marketing of corporate securities viz. equity shares, preference

shares and debentures or bonds by offering them to public. Investment banks act as an

intermediary whose main job is to transfer capital from those who own it to those who need it.

After taking action as per SEBI guidelines, the Investment banker arranges a meeting with

company representatives and advertising agents to finalize arrangements relating to date of

opening and closing of issue, registration of prospectus, launching publicity campaign and fixing

date of board meeting to approve and sign prospectus and pass the necessary resolutions. Pricing

of issues is done by the companies in consultant with the Investment bankers.

• Underwriting of Public Issue:

Underwriting is a guarantee given by the underwriter that in the event of under subscription, the

amount underwritten would be subscribed by him. Banks/Investment banking subsidiaries cannot

underwrite more than 15% of any issue.

• Managers, Consultants or Advisers to the Issue:

The managers to the issue assist in the drafting of prospectus, application forms and completion

of formalities under the Companies Act, appointment of Registrar for dealing with share

applications and transfer and listing of shares of the company on the stock exchange. Companies




can appoint one or more agencies as managers to the issue.

• Portfolio Management:

Portfolio refers to investment in different kinds of securities such as shares, debentures or bonds

issued by different companies and government securities. Portfolio management refers to

maintaining proper combinations of securities in a manner that they give maximum return with

minimum risk.

• Advisory Service Relating to Mergers and Takeovers:

A merger is a combination of two companies into a single company where one survives and

other loses its corporate existence. A takeover is the purchase by one company acquiring

controlling interest in the share capital of another existing company. Investment bankers are the

middlemen in setting negotiation between the two companies.

• Off Shore Finance:

The Investment bankers help their clients in the following areas involving foreign currency.

(a) Long term foreign currency loans

(b) Joint Ventures abroad

(c) Financing exports and imports

(d) Foreign collaboration arrangements

• Non-resident Investment:

The services of Investment banker includes investment advisory services to NRI in terms of

identification of investment opportunities, selection of securities, investment management, and

operational services like purchase and sale of securities.

• Loan Syndication:

Loan syndication refers to assistance rendered by Investment bankers to get mainly term loans




for projects. Such loans may be obtained from a single development finance institution or a

syndicate or consortium. Investment bankers help corporate clients to raise syndicated loans

from banks or financial institutions.

• Corporate Counseling:

Corporate counseling covers the entire field of Investment banking activities viz. project

counseling, capital restructuring, public issue management, loan syndication, working capital,

fixed deposit, lease financing acceptance credit, etc.

Ranking of Merchant Banking in India:

Merchant Banker OE FSS QPS QM INN

ICICI Securities 4.0 4.0 4.2 3.8 4.3

IDBI 4.2 3.2 4.5 4.0 4.8

SBI Caps 4.4. 3.9 4.6. 6.7 5.2

DPS 6.1 5.7 6.0 6.0 5.3

IFCI 6.1 5.7 6.0 6.0 6.3

Bank of Baroda 6.7 6.5 6.7 6.6 6.8

Jardine Fleming 5.8 6.2 5.9 5.0 5.5

JM Finance 6.0 6.5 5.5 5.9 5.4

ENAM 6.3 6.8 6.4 6.3 6.2

PNB Caps 6.8 6.8 6.7 6.8 6.8

Note: OE: Overall Excellence; FSS: Financial Soundness ; QPS: Quality Product/Service;

QM: Quality Management; INN: Innovativeness.




ORGANISATIONAL STRUCTURE – IB

Front Office Middle Office Back Office

- Investment Banking - Risk - Operations

- Sales & Trading - Finance - Technology

- Research - Compliance

- Custodian

- Investment Mgmt

Main activities and units

An investment bank is split into the so-called front office, middle office, and back office.

Investment banks offer security to both corporations issuing securities and investors buying

securities. For corporations investment bankers offer information on when and how to place their

securities in the market. The corporations do not have to spend on resources with which it is not

equipped. To the investor, the responsible investment banker offers protection against unsafe

securities. The offering of a few bad issues can cause serious loss to its reputation, and hence

loss of business. Therefore, investment bankers play a very important role in issuing new

security offerings

Front office

Investment banking is the traditional aspect of the investment banks which also involves

helping customers raise funds in the capital markets and advise on mergers and

acquisitions. Investment banking may involve subscribing investors to a security

issuance, coordinating with bidders, or negotiating with a merger target. Another term for

http://en.wikipedia.org/wiki/Front_office

http://en.wikipedia.org/wiki/Middle_office

http://en.wikipedia.org/wiki/Back_office


http://en.wikipedia.org/wiki/Investment_banks

http://en.wikipedia.org/wiki/Funds

http://en.wikipedia.org/wiki/Capital_markets

http://en.wikipedia.org/wiki/Mergers

http://en.wikipedia.org/wiki/Acquisitions

http://en.wikipedia.org/wiki/Acquisitions

http://en.wikipedia.org/wiki/Mergers

http://en.wikipedia.org/wiki/Capital_markets

http://en.wikipedia.org/wiki/Funds

http://en.wikipedia.org/wiki/Investment_banks








the investment banking division is corporate finance, and its advisory group is often

termed mergers and acquisitions (M&A). The investment banking division (IBD) is

generally divided into industry coverage and product coverage groups. Industry coverage

groups focus on a specific industry such as healthcare, industrials, or technology, and

maintain relationships with corporations within the industry to bring in business for a

bank. Product coverage groups focus on financial products, such as mergers and

acquisitions, leveraged finance, equity, and high-grade debt and generally work and

collaborate with industry groups in the more intricate and specialized needs of a client.

Sales and trading: On behalf of the bank and its clients, the primary function of a large

investment bank is buying and selling products. In market making, traders will buy and

sell financial products with the goal of making an incremental amount of money on each

trade. Sales is the term for the investment banks sales force, whose primary job is to call

on institutional and high-net-worth investors to suggest trading ideas (on caveat emptor

basis) and take orders. Sales desks then communicate their clients' orders to the

appropriate trading desks, who can price and execute trades, or structure new products

that fit a specific need. Structuring has been a relatively recent activity as derivatives

have come into play, with highly technical and numerate employees working on creating

complex structured products which typically offer much greater margins and returns than

underlying cash securities. Strategists advise external as well as internal clients on the

strategies that can be adopted in various markets. Ranging from derivatives to specific

industries, strategists place companies and industries in a quantitative framework with

full consideration of the macroeconomic scene. This strategy often affects the way the

firm will operate in the market, the direction it would like to take in terms of its

proprietary and flow positions, the suggestions salespersons give to clients, as well as the

http://en.wikipedia.org/wiki/Corporate_finance

http://en.wikipedia.org/wiki/Mergers_and_acquisitions

http://en.wikipedia.org/w/index.php?title=Sales_and_trading&action=edit&redlink=1


http://en.wikipedia.org/wiki/Market_maker

http://en.wikipedia.org/wiki/Caveat_emptor

http://en.wikipedia.org/wiki/Derivative_(finance)

http://en.wikipedia.org/wiki/Derivative_(finance)

http://en.wikipedia.org/wiki/Caveat_emptor

http://en.wikipedia.org/wiki/Market_maker


http://en.wikipedia.org/wiki/Mergers_and_acquisitions

http://en.wikipedia.org/wiki/Corporate_finance




way structures create new products. Banks also undertake risk through proprietary

trading, done by a special set of traders who do not interface with clients and through

"principal risk", risk undertaken by a trader after he buys or sells a product to a client and

does not hedge his total exposure. Banks seek to maximize profitability for a given

amount of risk on their balance sheet. The necessity for numerical ability in sales and

trading has created jobs for physics and math Ph.D.s who act as quantitative analysts.

Research is the division which reviews companies and writes reports about their

prospects, often with "buy" or "sell" ratings. While the research division generates no

revenue, its resources are used to assist traders in trading, the sales force in suggesting

ideas to customers, and investment bankers by covering their clients. There is a potential

conflict of interest between the investment bank and its analysis in that published analysis

can affect the profits of the bank. Therefore in recent years the relationship between

investment banking and research has become highly regulated requiring a Chinese wall

between public and private functions.

Custody and agency services is the division which provides cash management, lending,

and securities brokerage services to institutions. Prime brokerage with hedge funds has

been an especially profitable business, as well as risky, as seen in the "run on the bank"

with Bear Stearns in 2008.

Investment management is the professional management of various securities (shares,

bonds, etc.) and other assets (e.g. real estate), to meet specified investment goals for the

benefit of the investors. Investors may be institutions (insurance companies, pension

funds, corporations etc.) or private investors (both directly via investment contracts and

more commonly via collective investment schemes eg. mutual funds). The investment

http://en.wikipedia.org/wiki/Proprietary_trading


http://en.wikipedia.org/wiki/Ph.D.

http://en.wikipedia.org/wiki/Quantitative_analyst

http://en.wikipedia.org/wiki/Sell-side_analyst


http://en.wikipedia.org/wiki/Chinese_wall

http://en.wikipedia.org/w/index.php?title=Custody_and_agency_services&action=edit&redlink=1


http://en.wikipedia.org/wiki/Prime_brokerage

http://en.wikipedia.org/wiki/Hedge_funds

http://en.wikipedia.org/wiki/Run_on_the_bank

http://en.wikipedia.org/wiki/Bear_Stearns

http://en.wikipedia.org/wiki/Investment_management


http://en.wikipedia.org/wiki/Shares

http://en.wikipedia.org/wiki/Bonds

http://en.wikipedia.org/wiki/Real_estate

http://en.wikipedia.org/wiki/Insurance_companies

http://en.wikipedia.org/wiki/Pension_funds


http://en.wikipedia.org/wiki/Corporations

http://en.wikipedia.org/wiki/Private_investors

http://en.wikipedia.org/wiki/Mutual_funds



http://en.wikipedia.org/wiki/Mutual_funds

http://en.wikipedia.org/wiki/Private_investors

http://en.wikipedia.org/wiki/Corporations



http://en.wikipedia.org/wiki/Insurance_companies

http://en.wikipedia.org/wiki/Real_estate

http://en.wikipedia.org/wiki/Bonds

http://en.wikipedia.org/wiki/Shares


http://en.wikipedia.org/wiki/Bear_Stearns

http://en.wikipedia.org/wiki/Run_on_the_bank

http://en.wikipedia.org/wiki/Hedge_funds

http://en.wikipedia.org/wiki/Prime_brokerage




http://en.wikipedia.org/wiki/Quantitative_analyst

http://en.wikipedia.org/wiki/Ph.D.






management division of an investment bank is generally divided into separate groups,

often known as Private Wealth Management and Private Client Services.

Middle office

Risk management involves analyzing the market and credit risk that traders are taking

onto the balance sheet in conducting their daily trades, and setting limits on the amount of

capital that they are able to trade in order to prevent 'bad' trades having a detrimental

effect to a desk overall. Another key Middle Office role is to ensure that the above

mentioned economic risks are captured accurately (as per agreement of commercial terms

with the counterparty), correctly (as per standardized booking models in the most

appropriate systems) and on time (typically within 30 minutes of trade execution). In

recent years the risk of errors has become known as "operational risk" and the assurance

Middle Offices provide now includes measures to address this risk. When this assurance

is not in place, market and credit risk analysis can be unreliable and open to deliberate

manipulation.

Finance areas are responsible for an investment bank's capital management and risk

monitoring. By tracking and analyzing the capital flows of the firm, the Finance division

is the principal adviser to senior management on essential areas such as controlling the

firm's global risk exposure and the profitability and structure of the firm's various

businesses. In the United States and United Kingdom, a Financial Controller is a senior

position, often reporting to the Chief Financial Officer. Corporate strategy often falls

under the finance division as well.







http://en.wikipedia.org/wiki/Risk_management


http://en.wikipedia.org/wiki/Market_risk

http://en.wikipedia.org/wiki/Credit_risk

http://en.wikipedia.org/wiki/Counterparty

http://en.wikipedia.org/wiki/Operational_risk

http://en.wikipedia.org/wiki/Finance


http://en.wikipedia.org/wiki/Comptroller

http://en.wikipedia.org/wiki/Corporate_strategy

http://en.wikipedia.org/wiki/Corporate_strategy

http://en.wikipedia.org/wiki/Comptroller


http://en.wikipedia.org/wiki/Operational_risk

http://en.wikipedia.org/wiki/Counterparty

http://en.wikipedia.org/wiki/Credit_risk

http://en.wikipedia.org/wiki/Market_risk







Compliance areas are responsible for an investment bank's daily operations' compliance

with government regulations and internal regulations. Often also considered a back-office

division.

Back office

Operations involve data-checking trades that have been conducted, ensuring that they

are not erroneous, and transacting the required transfers. While some believe that

operations provides the greatest job security and the bleakest career prospects of any

division within an investment bank [4], many banks have outsourced operations. It is,

however, a critical part of the bank. Due to increased competition in finance related

careers, college degrees are now mandatory at most Tier 1 investment banks.[citation needed ]

A finance degree has proved significant in understanding the depth of the deals and

transactions that occur across all the divisions of the bank.

Technology refers to the information technology department. Every major investment

bank has considerable amounts of in-house software, created by the technology team,

who are also responsible for technical support. Technology has changed considerably in

the last few years as more sales and trading desks are using electronic trading. Some

trades are initiated by complex algorithms for hedging purposes

http://en.wikipedia.org/wiki/Compliance_(regulation)



http://en.wikipedia.org/wiki/Investment_bank#cite_note-3


http://en.wikipedia.org/wiki/Wikipedia:Citation_needed



http://en.wikipedia.org/wiki/Information_technology

http://en.wikipedia.org/wiki/Software

http://en.wikipedia.org/wiki/Technical_support

http://en.wikipedia.org/wiki/Electronic_trading

http://en.wikipedia.org/wiki/Algorithms

http://en.wikipedia.org/wiki/Hedge_(finance)

http://en.wikipedia.org/wiki/Hedge_(finance)

http://en.wikipedia.org/wiki/Algorithms

http://en.wikipedia.org/wiki/Electronic_trading

http://en.wikipedia.org/wiki/Technical_support

http://en.wikipedia.org/wiki/Software

http://en.wikipedia.org/wiki/Information_technology








CHINESE WALL CONCEPT IN INVESTMENT BANK

An investment bank can also be split into private and public functions with a Chinese wall which

separates the two to prevent information from crossing. The private areas of the bank deal with

private insider information that may not be publicly disclosed, while the public areas such as

stock analysis deal with public information.


http://en.wikipedia.org/wiki/Insider_information

http://en.wikipedia.org/wiki/Insider_information





IPO MANAGEMENT




BRIEF ABOUT THE ISSUER:

It is a power project development company, which is developing, and will operate and maintain,

power projects in India. They have four thermal power projects under various stages of

development, with a combined installed capacity of 6,600 MW. In addition, they are also

planning to develop two power projects with a combined installed capacity of 3,300 MW. They

intend to sell the power generated from these projects under a combination of long-term power

purchase agreements to industrial and state-owned consumers and on Investment basis. They are

part of the Adani Group, a leading business group in India. Adani Enterprise Limited, their

Promoter, is the flagship company of the Adani Group, with total revenues of Rs. 196,097.10

million for the fiscal year 2008. They believe AEL was one of the largest traders of coal in India

for the three years period ended March 31, 2008, with coal mining rights both in the international

and domestic markets, and according to Central Electricity Regulatory Commission, for the three

years period ended March 31, 2008, AEL was one of the largest power traders, by volume, in

India. With the commissioning of their power projects, the Adani Group will be vertically

integrated in power sector value chain through presence in related activities such as coal mining,

coal trading, shipping, power generation, power transmission and power trading. Another Adani

Group company, Mundra Port and Special Economic Zone Limited (“MPSEZL”), owns and

operates one of the largest private sector commercial ports in India, a Special Economic Zone

(“SEZ”) at Mundra and a railway line between Mundra and Adipur leading to strong synergies

with their projects being set up in close vicinity. In addition, the Adani Group also has operations

in other industries, including commodities trading, real estate development, agro processing and

logistics. They expect that they will benefit from Adani Group’s strategy of vertical integration,

which gives them greater control over various activities of power generation and trading.




OBJECTIVE OF THE ISSUE

To part finance the construction and development of Mundra Phase IV Power Project for 1,980

MW. Funding equity contribution in our subsidiary Adani Power Maharashtra Limited to part

finance the construction and development cost of power project for 1,980 MW at Tiroda,

Maharashtra and General Corporate Purposes

INDICATIVE ISSUE STRUCTURE

Issue of Equity Shares 301,652,031 Equity Shares

Employee Reservation Portion 8,000,000 Equity Shares

Net Issue to the Public 293,652,031 Equity Shares

QIB Portion ** Atleast 176,191,219 Equity Shares

Available for MF Only 8,809,561 Equity Shares

Balance of QIB Portion (After Deducting MF ) 167,381,658 Equity Shares

Non-Institutional Portion Upto 29,365,203 Equity Shares

Retail Portion Upto 88,095,609 Equity Shares

** The Company may consider participation by Anchor Investors for upto 52,857,366

Equity Shares in accordance with applicable SEBI Guidelines

PRICE BAND: Rs. 90/- to Rs. 100/- per equity share

BID LOT: 65 Equity Shares & in multiples thereof




INDICATIVE TIMING OF ISSUE

ISSUE OPEN DATE : 28-JULY-2009

ISSUE CLOSE DATE : 31-JULY-2009

BOOK RUNNING LEAD MANAGER:

ICICI Securities

Kotak Securities

DSP Merrill Lynch

JM Financial

SBI Capital Markets Limited

Morgan Stanley

IDFC

SYNDICATE MEMBER:

Edelweiss Securities Limited

India Infoline Limited

UBS Securities India Private Limited




SHAREHOLDING PATTERN ( POST ISSUE ):

Promoter and Promoter Group 73.50%

3i Power Investments A1 Limited 3.13%

Adishree Tradelinks Private Limited 3.13%

Capital Trade and Investment Private Limited 1.23%

Employees 0.37%

Other 0.93%

Public 13.47%

BROKERAGE:

CATEGORY BROKERAGE

RETAIL INVESTOR 0.35% On Amt Allotted

HNI & Non Institutional Investor 0.20% on Amt Allotted

QIB Nil




ZONE WISE IPO SUBSCRIPTION ON 28TH JULY 2009 – ICICI SECURITIES LTD

ADANI IPO Subscription - ICICI Sec

75

2924

41

0

10

20

30

40

50

60

70

80

West South North East

Zone

A m

o u n t ( i n L a k h s )

AMOUNT




OFFLINE BIDDING URL MODULE MANAUAL

Data Entry

1. Click on the URL http://172.16.35.19/tradingscreens/

1. Input the NT User Id and password.




2. Select IPO Offline

3. Select “Place Bids”




4. Set Lot Size ?(enter 1) and click on Fix.

5. Following Screen would appear. This would be the page into which the Application details have to be

inputted.




a) Select IPO – Please select Adani Power Limited ADAPOW

b) Application Number – This is a mandatory field without which the entry will not be saved. Number

appearing on top right hand corner of the BAF(Bid cum Application Form). Please enter full application

number along with Prefix. In the below mentioned BAF, the application form to be entered would be

“14746869” wherein the prefix in this form is 1 the prefix vary from application to application

a. Select NSDL/CDSL as per customer indication on the BAF and enter as under

NSDL

i. DP Name

ii. DP Id (eight characters)

iii. Client Id (eight characters

CDSL

i. DP Name

ii. DP Id – to be left blank

iv. Client Id (sixteen character)

In DP Name care to be exercised that no special character like full stop, comma, hyphen,

ampersand is included. (“. , - & ).

b. Investor Status – Select relevant status. If customer is individual select IND

c. Bid – Enter the bids put in by the customer. If he has put in three bids all three to be

filled

i. Number of shares – Has to be in multiples specified in issue offer




ii. Price – Has to be within the price band

iii. Cut Off- In case customer has mentioned cut off, then just the number of

shares and cut off has to be selected

d. Investor Name – Name to be entered

e. Phone Number and Email Id – These are optional fields

f. Agent Code to be entered as Employee Code of the employee who has procured the

application.

g. After inputting the data click on Save

6. On clicking save if all the entries have been entered correctly, the following prompt will appear. Click

on Ok to proceed.

In case there is some error in the data entry, there would be a prompt warning the customer –

illustrated in point 4




7. The following screen would appear. Click “OK” to return to the data entry screen

8. After inputting the data if there would be an error the following prompt would appear. Branch can

either proceed by selecting Ok or can rectify the error by clicking on cancel.

If branch clicks on OK, the record would be saved

If branch clicks on Cancel, they can rectify the entry then and there and then save the record

9. After the bidding is completed the form should be submitted at the nearest collecting bank.




ICICI SECURITIES:

ICICI Securities is the largest equity house & SEBI Registered Category I Investment Banks in

the country providing end to end solution through the largest non-banking distribution channel so

as to fulfill the needs of retail and corporate clients. It has a dominant position in its core

segment of its operations – Corporate Finance including Capital Market Advisory services ,

institutional equities and financial product distribution

BOARD OF DIRECTOR

Ms. Chanda Kocchar – Chairperson

Mr. Ketan Patel

Mr.Narendra Murkumbi

Mr.Uday Chitale

Mr.Pallavi Vohra

Mr. Sonjoy Chatterjee

Ms. Madhabi Puri Buch – MD & CEO

Mr. A Murugappan - Executive Director

Mr. Anup Bagchi – Executive Director

RECENT AWARDS & RECOGNITION

ICICI Securities is awarded as the Best Investment Bank 2008 by Global Finance Magazine

The Corporate Finance Group also awarded a runner up Best Investment Banker by outlook

Money in 2007.




GLOBAL PRESENCE

ICICI Securities has presence in following Countries

India

Singapore

USA

Oman

CORE BUSINESS :

Institutional Business

Equity Capital Market:

ICICI Securities has been at the forefront of Capital Market advisory for several decades and has been

involved in most of the major book-building and fixed price public equity issuance. It is the leading

underwriters of equity and equity linked offering. Equity product includes IPO, Rights offering,

Convertible offerings and private placement and international offerings. ICICI Securities has successfully

handled 206 Equity Public Issues, 193 Right Issues and 28 Open offers

Merger & Acquisition:

ICICI Securities is amongst the first investment banks to form a dedicated M&A practice and provide

innovative and customized solution to achieve the objectives of clients.

ICICI Securities provide buy-side and sell-side advisory services as a part of M&A advisory offerings

including JV, Mergers, and acquisitions.




Private Equity:

ICICI Securities has a dedicated practice to assist companies with capital mobilization through private

equity / Venture Capital route across their life cycle. ICICI helps companies to raise capital during the

seed , growth and expansion phases.

Retail Business

Retail Equities (ICICIdirect.com) :

ICICIdirect.com offers a convenient and easy to use platform to invest in equity and various

other products. Buying and selling shares are just a click away. It has 3-in-1 concept enables

customers to tie in their savings bank, demat and brokerage accounts electronically and

seamlessly. ICICI also offers access to comprehensive research information, stock picks, mutual

funds, recommendations etc. In 3 in 1 concept, once a request is placed for investing in a

particular fund, there are no manual processes involved. Bank funds are automatically debited or

credited while simultaneously crediting or debiting the unit holdings. Client can have a control

on its own investment. ICICI Direct is the first broker in india to introduce Digital Signed

Contract Note to its customer

ICICI Direct Super Store:

ICICI Direct has recently launched the concept of Super Store in India, These stores offers a

variety of financial products and services under one roof. It has also started financial planning

services at these stores. ICICI Retail customers as well as New Customer (Prospects )can walk in

to ICICI Direct super store for financial products like 3 in 1, Equities, MF, IPO, Life and

General Insurance, HL, PL and Fixed Income products. The stores also conduct periodic training

session on Capital Market.




Active Trader Services (ATS) :

ATS is a offline platform for Born Traders, The client who deals more than Rs. 500000 is treated

as Active Trader . As a customer of ATS , ICICI provide Dedicated Relationship Manager ,

Special Research Team to ATS Customer.

Sub Broker Channel:

This is the prime business channel in ICICI Securities, It offers Win Win partnership for

entrepreneurs, This channel acts as a business catalyst. All the Sub-Brokers are registered with

ICICI Securities and able to transact through the fully automated ICICI Direct Platform

SALES CHANNEL OF ICICI SECURITIES

Sales Channel

I Direct

Store

Retail

Channel

Equity

Channel

Sub Broker

Channel




SALES CHANNEL

I-Direct Stores:

In India, there are 300 ICICI Direct Center ,customer can walk in to these centers for financial

products like 3 in 1 A/c, Equities , MF , IPO, LI , GI, HL, PL and other financial products.

These stores also conduct periodic training session on capital Market.

Services like Financial planning is available in I Direct Stores, where customer can find out his

Risk Profiles and Plan his investments.

Retail :

The Team of 150 Dedicated Relationship Manager in Retail Channel, Basically They are

promoting 3 in 1 Account and Agency Sales. They are promoting all the Financial Products of

ICICI Securities

Equity Team :

Equity Team includes ATS (Active Traders Services) & EAG (Equity Advisory Group). ATS is

mainly focus on HNI Customers whose Net worth is greater than Rs.500000 and they are

actively trade in Capital Market, ICICI Provide Separate RM & Dealer Team for ATS Customer.

EAG Team Mainly Covers HNI Customers having Net worth is more than Rs. 1 Crore , They do

research on Various companies and provide Advisory Services to the Customers.




Sub-Broker Channel:

In ICICI Securities there are 60 Relationship Manager & 75 CSEs handles 900 Active Sub

Brokers Channel. This is the prime channel in ICICI Securities It offers Win Win partnership for

entrepreneurs, this channel acts as a business catalyst.

All the Sub-Brokers are registered with ICICI Securities and able to transact through the fully

automated ICICI Direct Platform

RESEARCH TEAM

This is the very important Area of Investment Banking, All the Business & Research Analyst sits

in this Team, and In ICICI Securities Most of the Analyst are hired from well known Business

School. In ICICI Securities, Research Team is divided into two segments Viz.

A) INSTITUTIONAL RESEARCH

The Institutional research team has 30 analysts, with coverage of 150 stocks. `India Unlimited',

an annual investors' conference held in Singapore and New York, witnesses excellent responses

from investors every year. The team also holds a number of theme based conferences in India

that draw good responses from the clientele

B) RETAIL RESEARCH

ICICIdirect.com research, a 30-member strong team, is a leader in independent equity research

on over 170 companies, specializing in large, small and mid cap companies. Our research team

makes over 300 company visits per year, meeting with management from the smallest to the

largest cap companies.




Large cap companies provide an overview of industry environments, while small and mid-cap

companies are chosen 'bottom-up', providing a unique perspective from a generally under-

researched end of the market. I-Sec focus on identifying companies, which they believe are

likely to generate wealth for investor on a sustained basis through in-depth fundamental research

and extensive company visits.

Research Team offers Services like Detailed Company Report, Pick of the Week, Model

Portfolio, Stock on the Move, Daily & Weekly derivatives, Intra-day calls, Daily, Weekly &

Monthly Technical with an impeccable strike rate.




Snap Shot of Research Report




OPERATIONS & PROCESS:-

SUB-BROKER OPERATION:

Registration Process

1) RM approach to Sub-Broker and fill up the NSE, BSE and ICICI Securities

Application form.

2) RM collect following from Sub-Broker along with the Application.

PAN Card Copy.

Address Proof (Passport / Telephone Bill / Bank Statement).

Education Proof (Mark Sheet / 12th

Pass Certificate).

Passport Size Photo (5 Copies).

CA Letter on the Letter Head.

Bank Letter.

Affidavit in case of Name Mismatched (If the name on Pan is different

from the name on Application).

DD Worth Rs.10,000 towards NSE Registration Fees.

DD Worth Rs. 10,000 towards BSE Registration Fees.

DD Worth Rs. 25,000 towards ICICI Sec Application Fees.

DD Worth Rs. 50,000 towards Security Deposits.

3) RM send the above 3 files NSE , BSE and ICICI Application files to the

Operation Team which resides at Turbhe.

4) Operation Executive inward the file in INWARD MIS

5) Operation Executive check the documents with the help of legal & Compliance

Team and deposit DD to the escrow account.




6) If there is any rejection he intimate it to the RMs else he sends the files to the

Exchange for the Registration.

7) Normal TAT at Exchange is 3 to 6 Months.

8) Once we received Registration Certificate from Exchange , Legal department

keep the original certificate and send photo copy to the respective Sub-Broker.

9) Once certificate received by Sub-Broker , RM arrange NCFM & BCSM

Examination for Sub-Broker.

10) Once Ops receive NCFM & BCSM from Sub-Broker , he activate the Sub-Broker

on ICICIdirect Portal, and provide username and password to the sub-broker.

SUB-BROKER CLOSURE PROCESS

RM Signs Closure Undertaking from Sub-Broker and send it to ops.

Ops Check the Undertaking, if it is OK then close the Sub-Broker.

MUTUAL FUND OPERATION:

TRANSFER IN

Transfer in is a process where the customer can bring his offline folio to ICICI Securities.

Provided he should have an ICICIdirect A/C.

Criteria for Transfer In Process:

The offline folio should be in the name of same customer.

The offline folio should be in the single holding pattern.




If the customer has SIP in the offline folio, it needs to be cancelled before placing Transfer In

Request.

Documents required for Transfer In Process:

1) Transfer In Request Letter

2) No Objection Certificate (NOC)

3) Self attested PAN Copies

4) Statement of holding for the folio to be transferred in.

Procedure to be followed by the Customer

1) Login to ICICIdirect A/C and go to MF Page.

2) Click on Purchase

3) In front of the AMC for which we wants to place a TI order, Click on the link “Transfer

In”.

4) Click on the “Place TI Order “link .

5) In the form that opens, select the offline scheme name and folio number and click on

“Submit”.

6) Once he click on submit, he will be given an option to print this application. The

Customer needs to take a print of the application, Sign it and sent it along with NOC,

Statement of holding for the folio and PAN Copy to the Operation Team at Corporate

Office.

How does the Transfer In request take place?

1) Once the customer places a Transfer In request online, the status of the order will be

“Documents Awaited” in TI Book till the customer sends the documents to us.




2) On receipt of the documents for Transfer in, they are first verified in accordance with the

basic requirements of the respective Asset Management Company (AMC).

3) Post verification, the documents are sent to the AMC/ Registrar for further processing

and the status of the order is changed to “Sent to Registrar”

4) On confirmation from the AMC / Registrar, the number of units transferred in is updated

on the site and the status of the order then becomes “Executed”. The customer can then

view the units online in his unit holdings.

5) The TAT for the Transfer In process is 15 working days from the date of receipt of

documents at ICICI Securities.

TRANSFER OUT

Transfer out is a procedure of change in broker code where an ICICIdirect customer want s to

either directly deal with AMC.

Criteria for Transfer Out Process:

The customer can’t transfer the unit holding in joint name as only single holder is

allowed in ICICIdirect

The customer should cancel the ongoing SIP before he places a transfer out request for

these folios.

Documents required for Transfer In Process:

1) Transfer Out Application form.

2) Self attested PAN Copy.




Procedure to be followed by the Customer

Customer needs to send the above mentioned documents to the ops at corporate office.

How does the Transfer In request take place

1) On receipt of the Transfer Out request letter from the customer, we shall verify

the customer details, address, the bank mandate details and the signature with that

in the records of ICICI Securities.

2) ICICI Securities will then issue an NOC, duly signed by the Authorized signatory.

3) The Customer’s request letter, along with the NOC and PAN copy is then sent to

the respective AMC / Registrar for further processing.

4) Once transfer out is done, the units holding of the customer will become nil, and

the details of the transfer out will be reflected in customers order book.

5) The TAT for the Transfer out process is 15 working days.

INTERNAL TRANSFER FROM ONE MATCH A/C TO ANOTHER:

Internal transfer is a process where customer can transfer mutual fund unit holdings from one

Match A/c to another, provided both the Match Account are in the same name, it ensure that the

customer closes one of the accounts after the transfer is done because as per SEBI guidelines, a

customer can not maintain more than one trading a/c with a broker.

Documents required for Internal Transfer Process :

1) Internal Transfer Application for Resident & NRI Customer

2) PAN Copy




How can the customer transfer his units from one A/C to another ?

1) Customer needs to submit specific formats

2) Customer needs to place transfer in orders for all the schemes in the source match a/c

these orders have to be placed in the target match a/c.

3) Customers should cancel any ongoing SIP in the source ICICIdirect A/C before giving

any internal transfer request. In case an internal transfer request is given with ongoing

SIP’s in the source Match A/C, the same will be cancelled. The customer may in future

start a new SIP in the Target ICICI direct A/c.

Type of Internal Transfer

One resident match a/c to another resident match a/c.

NRI ICICIdirect a/c to resident ICICIdirect a/c.

Resident ICICIdirect a/c to NRI ICICIdirect a/c.

BROKERAGE PATTERN IN ICICI SECURITIES

TYPE AMOUNT

Business Partner Referral

Commission

Rs.100 Per New BP Acquisition

Trail Commission

- ICICI Securities 70% on Total Commission

- Business Partner 30% on Total Commission

Commission on Equity (Cash) 0.25% on Total Equity (Cash) Turnover

Commission on Equity (Intra day) 0.03% on Total Intra Day (Margin)

Turnover

Commission on Derivatives 0.03% on Total Derivative Turnover(F&O)

Mutual Funds Avg 0.30 Paisa (Differ Scheme to

Scheme)

IPO Depend upon Issuer Company




OPERATIONAL CONTROL TEAM

It is a internal control system in ICICI Securities, Their Main Job is to check the Operational

Activities and ensure whether the work is getting done as per the TAT given. If there is any

deviation in Work, they escalate the issue to Operational Control Team. Then OCT investigate

the matter and find out the reason for the deviations. It is Team of 4 excellent Professionals.

They screen the operational Activities. Operation Control releases following MIS on Monthly

basis across the channel.

Area Observations RemarksProcess

Owner

Refund of security deposit

to the sub-brokers

6 cases observed.Team to provide the

reasons for delay of

refund and target date

for refunding the same.

Anil

Desale(Refer Annexure 1 for the list of sub

brokers status which are closed for more

than 6 months and security deposits due

to be refunded)

Pre – registration (Subbroker Acquisition Status)

Prior to Apr 09:

Team to provide

reasons for pending

cases at their end andresolve them within

TAT.

Anil

Desale/ Samardeep

Sood

Total number of cases – 352

Pending with Operations – 5 Pending

with Sales – 132

(Prior to April, 08: 16)

Pending with Exchange – 215

Current financial year (0910):

Total pending cases – 30

Operations – 0

Sales – 20

Exchange – 10

Queries pending to be

resolved

1) Refund of security deposit - 4.

Team to provide

reasons for pending

cases at their end andresolve them within

TAT.

Anil

Desale

2) CTCL mapping - 4.

3) Change in personal details - Sub-

broker - 2.

4) Shifting of accounts - Retail to DBC

- 1.

5) Shifting of account - Sub-broker to

sub-broker - 1.

6) Creation of additional node id - 1.

7) V- Sat related - refund not received -

1.

Active sub broker which

are not registered

Total pending cases – 91 Team to provide

reasons for cases

pending with

operations.

Anil

Desale /

Samardeep

Sood

Operations – 4

Sales – 21

Exchange – 66




NSE undertaking for

additional clauses under

sub broker agreement.

Total cases – 803Team to provide the

target date for

resolving these pending

cases.

Manoj

KabraPending with sales – 2

Authorized person for

FNO active sub brokerTotal pending cases – 2

Team to provide the

target date for

resolving these pending

cases.

Manoj

Kabra

BCSM compliant node BCSM non- compliant node – 465

Team to update the

status on total BCSM

node id.

Arvind

Gogia

Sub brokers to be closed

For FY 2008-09

Pending with sales:

-Samardeep

Sood.NSE – 36

BSE – 30

SEBI fees yet to be

recovered

4 cases observed. Team to update ondetails of recovery (if

any).

AnilDesaleDetails as per Annexure : 2

Linking,De

linking,Shifting of clients

in sub broker

1) Linking & De-linking of Match Id's -

34.Team to update the

count for the same

Anil

Desale2) Shifting of match id's – 28.

LEGAL & COMPLIANCE TEAM

This department's responsibility is to assist the various business units to understand and

comply with SEBI guidelines with ICICI's Policies Role includes information and guidance,

coordination , surveillance and enforcement,control room.

ANALYTICAL EXCELLANCE TEAM

It is a Team of 4 Analyst , They are using Analytical Tools like SAS and generate various

types of Analytical Reports and submit it to the Product and Sales Team to take decision on

Product Expansion and diversification.




MARKETING & ALLIANCES :

The main responsibility of M&A team is to organise promotional Activities like Road

Promotion, Events etc in order to generate lead and those leads they forward it to concern

Sales Channels. Also tie up with the vendors and Agencies for Marketing collatrals.

Basically they are the support to the Sales channel.

HUMAN RESOURCE

HR Conducts Interview and hires talents from Internal & External Source, Also provides

Training to the Newly hired staff, Employee Orientation, Hiring Process, Performance

Appraisal, Training and development, Conduct Games at Corporate Office.




CONCLUSION

From the above study it has been concluded that In India Investment Banks are under regulation

of SEBI, As per SEBI Guidelines on Merchant Banking , Whenever any corporate go for IPO or

M& A They have to appoint Merchant Banker for Managing the affairs

The future of Merchant Bank in India is very Bright , if you consider present Market Situation

where Sensex & Nifty Index is 16000 & 5000 Respectively. So many corporate have declared

and filed IPO & M&A With SEBI. Merchant Bankers act as a Lead Manager and as a lead

manager they underwrite the Issue.

The major revenue for merchant banks is received from the IPO, M&A, Advisory Services; it is

purely fee based business. As we know in US Last year big investment bankers collapsed, the

reason being Sub Prime Crisis. In US investment banks lend money on mortgage so sudden

economical change reduced the demand for Real Estate and the prices of the property fallen

down. So ultimately the fund which was financed for Housing has also been shrinking.



BIBILIOGRAPHY

Manchiraju, H.R., "Merchant banking – Principles and Practice, New Age

International (p) Limited Publishers, New Delhi.

SEBI: Merchant Banking Regulations, 1992.

www.investopedia.com

www.wikipedia.com

www.icicisecurities.com

www.moneycontrol.com

www.google.com

www.sebi.org

www.rbi.org

http://www.investopedia.com/


http://www.wikipedia.com/


http://www.icicisecurities.com/


http://www.moneycontrol.com/


http://www.google.com/


http://www.sebi.org/


http://www.rbi.org/

http://www.rbi.org/

http://www.rbi.org/







Investment Banking in India - Finanl Project

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