Investment Needs Analysis Draft

8/17/2019 Investment Needs Analysis Draft

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INVESTMENT NEEDS ANALYSIS

A STUDY ON

INVESTMENT NEED ANALYSIS IN

ICICI DIRECT

Submitted in partial fulfillment of the requirement for

Master of Business Administration

SUBMITTED BY

S.A.SALAKA

RED NO: 1406284070

UNDER THE GUIDANCE OF

INTERNAL GUIDE:

Mr.Jinasis Mohanty

Asst.prof. (Marketing)

EXTERNAL GUIDE:

Mr.Pravat Satpathy

Sales officer (ICICI direct)

ASTHA SCHOOL OF MANAGEMENT

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BHUBANESWAR

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DECLARATION

I hereby declare that the project work entitled “Investments Need

Analysis” in “ICICI Direct Limited”, is an original work carried out by

me availing the guidance of my project guide. And it has been

submitted to the BIJU PATNAIK UNIVERSITY OFTECHNOLOGY’

(BPUT) in partial fulfillment for the award of the degree of MASTER

OF BUSINESS ADMINISTRATION (M.B.A) of Astha School of

Management. It has not been submitted to any other University or

Institution for the award of Degree/Diploma to the best of my

knowledge.

PLACE:

DATE:

Your’ sincerely,

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ACKNOWLEDGEMENT

I had a pleasure of working as summer trainee at ICICI DIRECT. The

intensive exposure to corporate environment with interactions from top to

bottom has brought a different type of perfection in me and its use and

application in the long run will make me successful in my future career

I express my sincere thanks to Mr.Pravat Satpathy (ICICI DERECT) for

giving me this project and without whose expert guidance; it would not have

been possible to accomplish the project. His timely advice and suggestions

at various stages of the project helped in bringing out this report in the

present form.

I express my earnest thanks and sincere gratitude to my faculty Asst.

Prof. Jinasis Mohanty. He has provided me the guidance about

background, market coverage and approach to tackle various difficulties

faced during the interaction with the clients, methodology of the survey, its

analysis and noble suggestions and consistent encouragement in completing

this project.

Last but not the least, special thanks to all the employees of ICICI

DIRECT whose support were extremely valuable and facilitated the

successful completion of this project.

Place:

Date:

S.A.SALAKA

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TABLE OF CONTENTS

SL NO. PARTICULARS PAGE NO.

1. Executive Summary 4

2. Introduction to the Topic 5

3 Objective of the Study 9

4. Research Methodology 10

5. Limitations 12

6. Company Profile 13

7. Literature Review 32

8. Data Collection and Analysis 54

9. Findings and Suggestions 58

10. Conclusion 59

11. Bibliography 60

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1. EXECUTIVE SUMMARY

The money what is saved out of earning is called savings which are to meet

future expenses instead of keeping the savings idle, it is advisable to use it to get

good return on it in the future is known Investment.

The objective of the research was to create awareness about various products

and services of the ICICIdirect.com and to know about the investors’ behaviour

and their preferences towards investment decisions and considerations. Other

than this, the research included the study of position of ICICIdirect.com in the

market and its comparative position with other players.

Descriptive research was used in the whole project. The data was collected

through meeting investors and potential investors in various areas of

Bhubaneshwar and questionnaires were filled on the basis of their responses.

The collected data was analyzed using percentage method.

Various findings were derived which revealed perception and behavior of

investors and potential investors toward financial market. Other than this the

attitudes of investors were also observed towards ICICIdirect.com. The report

based on the findings, various suggestions were given with a view to improve the

position of ICICIdirect.com in the market.

As a result of research, it was concluded that ICICIdirect.com has a good brand

image to the existing clients, but still has to work upon in various areas to excel

in the financial sector.

ICICIdirect.com in its span of years has undergone many innovations whether it

is in its field of technologies or whether it is customer satisfaction. In this period

of our training I have learnt all the operations done by ICICIdirect.com, i.e.

opening of DEMAT account, filling forms, verification of the form, rectification of

the form, checking the status of the clients, handling the queries of the

customers, gaining knowledge about the various products of the companies for

which ICICIdirect.com is doing cross-marketing like IPO, Commodities,

Derivatives, etc.

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2. INTRODUCTION TO THE TOPIC What is investment?

Investment is the employment of funds with the aim of achieving additional

income or growth in value. The essential quality of income is that, it involves

waiting for a reward. It involves the commitment of resources which have been

saved or put away from current consumption in the hope that some benefits will

occur in future. The term ‘investment’ does not appear to be a simple as it

has been defined. Investment has been categorized by financial expert and

economists.

What is investment needs analysis and why it is necessary in respect to

individual perspective?

Investment is a very basic need of human life. A person invests today to meet his

primary and secondary expenditure in a future date. The important factor is to

identify the ‘needs’ with respect to an individual perspective with cautious and

careful manner. After the basic feasibility study of needs part is done then the

analysis part starts with respect to individual point of view. The basic analysis

part is done to give maximum benefit to the investors and protect their

investment from unscrupulous investment projects. Procedure to select the

optimum investment for the investors is the primary goal of this project.

An investor has wide range of investment avenues such as:

Non Marketable Financial Assets

A good portion of financial assets is represented by non – marketable Financial

Assets. They can be classified into various categories such as:

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Public Provident Fund (PPF)

Fixed Deposits with Banks (F.D)

Recurring Deposits with Banks

RBI Relief Bond

Bonds

Bonds or Debentures represent long-term debt instruments. The issuer of a

bond promises to pay a stipulated stream of cash flow. Bonds may be classified

into the following categories such as:

Government Securities;

Savings Bonds;

Government Agency Securities;

PSU Bonds;

Debentures of Private Sector Companies; and

Preference Shares.

Money Market Instruments

Debt Instruments which have a maturity of less than one year at the time of

issue are called money market instruments. The important money market

instruments are:

Treasury bills,

Commercial paper and

Certificate of deposit.

Mutual Fund Schemes

Instead of directly buying equity shares and / or fixed income instruments we

can participate in various schemes of mutual funds which, in turn, invest in

equity shares and fixed income securities. There are three broad types of mutual

fund schemes such as:

Equity Schemes

Debt Schemes

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Balanced Schemes

Life Insurance Policies

Life Insurance may also be viewed as an investment. Insurance premiums

represent the sacrifice and the assured sum, the benefit. The important types of

insurance policies are:

Endowment assurance policy

Money back policy

Whole life policy

Term assurance policy

Real Estate

For the bulk of the investors the most important asset in their portfolio is a

residential house. In addition to a residential house, the more affluent investors

are likely to be interested in the following types of real estate:

Agricultural Land

Semi – Urban Land

Commercial Property

A resort home

A second house

Precious Objects

Precious objects are items that are generally small in size but highly valuable in

monetary terms. The most important precious objects are:

Gold and Silver

Precious Stones

Art Objects

Financial Derivatives

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A financial derivative is an instrument whose value is derived from the value of

an underlying asset. The most important financial derivatives from the point of

view of investors are:

1. Options

2.Futures

Equity Shares

Equity shares represent ownership capital. An equity shareholder has an

ownership stake in the company i.e. he / she has a residual interest in income

and wealth. Equity shares are classified into broad categories by stock market

analysts such as:

Blue chip Shares;

Growth Shares;

Income Shares;

Cyclical Shares; and

Speculative Shares.

In this report I have mainly focused on investments in share market by

retail investors.

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3. OBJECTIVE OF THE STUDY:

OBJECTIVES OF THE PROJECT:

The objective is to know that how many people in the city are aware of the

ICICIdirect.com and its product (Demat Account)

To aware the existing customer of the bank, regarding the benefit of

Demat Account in ICICIdirect.com and approach them to open the Demat

Account with ICICIdirect.com.

The objective of the study is to know about the potential of the capital

market regarding people’s dealing in share market.

To know the role of DEMAT ACCOUNT

To know the procedure of opening a DEMAT ACCOUNT

To know whether people have already opened their demat account and on

what basis.

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4.RESEARCH METHODOLOGYDefinitions of the population

Since the study is mainly related to know the investment patterns of the

investors on security market through Demat Account. The potentiality of earning

income and reducing risk of the investment community on the products, where

each security in the market has to be analyzed through their earning over the

others. The population here was being ICICIdirect.com customers.

Type of research

This is a descriptive research where survey method is adopted to collect primary

information from the investors using different scales as required and the

required secondary information for the analysis.

Primary Data

A questionnaire schedule was prepared and the primary data was collected

through survey method

Secondary Data

Company website

Books

Related information from net

Customer database

Sample Size

The population being large the survey was carried among 50 respondents, most

of them are the clients of ICICI bank. They will be considered adequate to

represent the characteristic of the entire population.

Sampling Procedure

The sampling procedure followed in this study is non-probability convenient

sampling. Simple random procedures are used to select the respondent from the

available database. The research work will be carried on the basis of structured

questionnaire. The study is restricted to the investors of ICICI.

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Techniques for data analysis

The analysis of data collection is completed and presented systematically with

the use of Microsoft Excel and MS-Word. The various tools which were used for

presentation are:

Bar graphs.

Pie charts

Column graphs

During my project I also came to know about the customer service which the

company provides to its customers. As far as data collection is concerned we

have both primary as well as secondary data in this report. I have collected

primary data by interactive session with the existing customer, prospective

customer and working officials of the ICICI bank and secondary data are

collected which are more qualitative in nature from the manuals, internets,

corporate articles another preserved data by company.

This project has been a great learning experience for me; at the same time itgave enough scope to implement my analytical ability. The first part gives an

insight about investments avenue, the Demat Account, their various aspects. It

is purely based on whatever ICICIdirect.com.

The secondary data is collected from the websites:

• www.nseindia.com

• www.bseindia.com

• www.nsdl.com

• www.cdsl.com

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http://www.nseindia.com/http://www.bseindia.com/http://www.nsdl.com/http://www.cdsl.com/http://www.nseindia.com/http://www.bseindia.com/http://www.nsdl.com/http://www.cdsl.com/


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5.LIMITATIONS The time limit of 45days training was not sufficient to know the whole

mechanism of the trading system.

The results of the study may not be universally applicable due to regional

constraints.

Money was also considered as a major constraint during the project work.

Besides the study has the limitation of place and resources.

As the study has been limited to only 50 individuals out of them most are

ICICI’s existing and potential customers.

An interpretation of this study is based on the assumption that the

respondents have given correct information.

It is conducted in Bhubaneswar city only.

Personal biasness may be included in the project work.

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COMPANY PROFILE

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6. COMPANY PROFILEICICI Group offers a wide range of banking products and financial services to

corporate and retail customers through a variety of delivery channels and

through its specialized group companies and subsidiaries in the areas of

personal banking, investment banking, life and general insurance, venture

capital and asset management. With a strong customer focus, the ICICI Group

Companies have maintained and enhanced their leadership positions in their

respective sectors.

ICICI Securities Ltd is the largest integrated securities firm covering the

needs of corporate and retail customers through investment banking,

institutional broking, retail broking and financial product distribution

businesses. Among the many awards that ICICI Securities has won, the

noteworthy awards for 2012 were: Asiamoney ‘Best Domestic Equity House for

2012; 'BSE IPF D&B Equity Broking Awards 2012’ under two categories:- Best

Equity Broking House - Cash Segment and Largest E-Broking House; the Chief

Learning Officer Award from World HRD Congress for Innovation in Learning

category. IDG India's CIO magazine has recognized ICICI Securities as a

recipient of CIO 100 award in 2009, 2010, 2011 and 2012. I-Sec won this

awards 4 times in a row for which the CIO Hall of Fame award was additionally

conferred in 2012.

ICICIdirect.com is a part of ICICI Securities and offers retail trading and

investments services. ICICIdirect.com provides a unique 3-in-1 On-line Trading

Account, Seamless, Secure and Integrated 3-in-1 trading platform. 3-in-1

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online trading platform links investors banking, trading and demat accounts,

ensuring unmatched convenience for customers.

PRODUCTS & SERVICES OF ICICIdirect.com

With an ICICIdirect.com account, investors get the following benefits:

Seamless Trading

Investors can trade in shares without going through the hassle of tracking

settlement cycles, writing cheques and transfer instructions. Absolutely hassle

free!

Wide range of products

Share trading in both NSE and BSE, innovative offerings like - Margin,

MarginPlus, BTST, SPOT. Derivatives trading, overseas trading, mutual funds,

IPOs and on-line life insurance.

Control

Investors can be rest assured that their order will be precisely for the amount

they wanted it to be, without any deviation, giving them full control of their

money and your trades

Tracking and Review

Monitoring customers’ investments is as important if not more than making that

investment itself. The portfolio tracker and watchlist along with sms alerts will

always keep them updated on the status of their investments with us and act on

them when required.

Security

Instead of transferring monies to a broker's pool or towards deposits, a customer

can manage their own demat and bank accounts when they trade through

ICICIdirect.com. It provides customer the flexibility to pay only when they trade.

Award Winning Research

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ICICIdirect.com understands the need for the right research to make the right

investment decision and has focused heavily n this area.

ICICIdirect.com team with its consistent delivery has been voted as the 'Most

preferred brand of financial advisory services' at the CNBC Awaaz Consumer

Awards, 2007.

ICICIdirect.com On- The - Move

An innovative site which helps you trade at high speeds even through low

bandwidth connections like data card and GPRS.

ICICISecurities Equity Advisory Services A premium service for privileged customers with an assigned equity advisor who

will guide you in placing trades. For more details please write in to

[email protected]

ICICI Securities ATS

A service for the born trader, who lives in and breathes the stock market with

specialized research and dedicated relationship managers. For more details

write in to [email protected]

Call-n-Trade

In situations when you are unable to log in to icicidirect.com website, you can

place orders securely over the telephone with the Call N Trade service.

ICICIdirect Institute

ICICIdirect Knowledge Programs provide you with an insight into a wide range of

financial products like derivatives, shares, mutual funds, IPOs, small savings

and insurance to grow your money and cater to your varying needs across

different stages of life. More than just products these programs help you make

informed investment decisions and manage your money better.

The following products and services are provided by the ICICIdirect.com to the

retail investors are enumerated below:

Equity

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Trading in shares:

ICICIdirect.com offers retail investors various options while trading in shares.

Cash Trading: This is a delivery based trading system, which is generally done

with the intention of taking delivery of shares or monies.

Margin Product: Retail investors can also do an intra-settlement trading upto 3

to 4 times their available funds, wherein they take long buy/ short sell positions

in stocks with the intention of squaring off the position within the same day

settlement cycle.

MarginPLUS Product: Through MarginPLUS retail investors can do an intra-settlement trading upto 25 times their available funds, wherein they take long

buy/ short sell positions in stocks with the intention of squaring off the position

within the same day settlement cycle. MarginPLUS will give a much higher

leverage in your account against your limits.

CallNTrader: CallNTrader allows retail investors to call on a local number in

their city & trade on the telephone through ICICIdirect.com’s Customer Service

Executives. This facility is currently available in over 11 major states across

India.

Trading on NSE/BSE : Through ICICIdirect.com, retail investors can trade on

NSE as well as BSE.

Market Order: Retail investors could trade by placing market orders during

market hours that allows them to trade at the best obtainable price in the

market at the time of execution of the order.

Limit Order: Allows retail investors to place a buy/sell order at a price defined

by them. The execution can happen at a price more favorable than the price,

which is defined by them, limit orders can be placed by them during holidays &

non market hours too.

Derivatives

FUTURES

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Through ICICIdirect.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.

Trading in FUTURES is simple! If, during the course of the contract life, the

price moves in your favour (i.e. rises in case you have a buy position or falls in

case you have a sell position), you make a profit.

Presently only selected stocks, which meet the criteria on liquidity and volume,

have been enabled for futures trading.

Calculate Index and Know your Margin are tools to help you in calculating your

margin requirements and also the index & stock price movements. The Centre

for Financial Learning is a comprehensive guide on futures and options trading.

OPTIONS

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.

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.

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.

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.

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By paying lesser amount of premium, you can create positions under OPTIONS

and take advantage of more trading opportunities.

Currency DerivativesICICI Direct offers you a simple and convenient way to trade and hedge your

currency risk in four pair of Currencies- Dollar, Euro, Pound and Japanese Yen

against Indian Rupee.

By offering you the choice of trading in different asset class of Currencies we

offer you the opportunity to diversify your portfolio

The benefits of choosing ICICI Direct for your Currency Trading are:

Convenience - Provides a well diversified set platform for online trading with

competitive brokerage under a single sign-on and completely paper-less

investing experience

Expertise - You can access to our Daily Research Reports as well as

Fundamental & Technical Reports and Advisory.

Flexibility - You can select the Currency Pair USD/INR, EUR/INR, GBP/INR and

JPY/INR in which you wish to trade

Few Advantages of this market are

Trading hours of 09:00 am to 05:00 pm provide more trading opportunities

Trade in prominent currencies like US Dollar, EURO, Pound, Yen against Indian

Rupee.

Real time and Transparent Currency Rates in comparison to OTC Rates.

No Counterparty Default risk due to settlement guarantee by regulated clearing

house.

Low Taxation (No STT and CTT)

Daily Cash Settlement in INR via MTM (Mark to Market)

Currency Futures - An Assets Class

If you have an ICICI Direct account, login to your account and select the

Currency Segment Section

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If the Currency Segment section is not enabled either you have not opted for the

facility or may not be KYC (Know-Your-Customer) Compliant. KYC is mandatory

for all investments in Currency Futures as per the Securities and Exchange

Board of India (SEBI).

Mutual Funds

ICICI Direct offers you a simple and convenient way to invest and manage your

personal finance with over 2000 funds approximately.

By offering you the choice of the various funds we partner with, we offer you the

opportunity to diversify your portfolio

ICICI Direct offers an efficient way to investing

The benefits of choosing ICICI Direct for your financial planning are:

Convenience - Provides a well diversified set of investment products under a

single sign-on and completely paper-less investing experience

Expertise - You can access some of the researched funds selected based on

rigorous criterion

Flexibility - You may select the fund that best suits your need

Pick the investment that is right for you

Since the process of selecting the right mutual fund may feel complex and

tedious, our experts have researched the funds and using certain criterion have

created a choice of funds.

You may choose to invest in the choice of funds suggested by our experts or may

build your own portfolio

Mutual Fund Investing

If you have an ICICI Direct account, login to your account and select the Mutual

Fund selection

If the Mutual Fund section is not enabled either you have not opted for the

facility or may not be KYC (Know-Your-Customer) Compliant. KYC is mandatory

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for all investments in Mutual Fund as per the Securities and Exchange Board of

India (SEBI).

ICICIdirect.com’s online service is ever evolving and offers its customers,

facilities like making a lump sum investment, redemption, switches within same

funds, setting up systematic investment plans etc.

One can start with as little as `.500 when a customer starts a Systematic

Investment Plan or̀ .5,000/- if he is looking for a lump sum investment.

Exchange Traded Funds

Exchange Traded Funds or ETFs are securities that are traded, like individual

stocks, on an exchange. Unlike regular open-end mutual funds, ETFs can be

bought and sold throughout the trading day like any stock.

Most ETFs charge lower annual expenses than many mutual funds. As with

stocks, one must pay a brokerage to buy and sell ETF units.

ICICI direct advantage

The benefits of choosing ICICI direct for your ETF investment are:

Invest in a paperless manner

No need to cut cheques

Get instant confirmation

Check portfolio for realized and unrealized profit/loss

Calculate capital gains at click of a button

How to buy or trade in ETFs

You can buy and sell Gold, Index, Banking or International ETFs online through

your ICICI direct account.

General Insurance

General Insurance products cover Health, Home, Motor and Travel, and help

protect your financial health unforeseen events strike close to home. ICICI

Lombard is the leading private general insurance company and has one of the

best products.

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Our partnership with ICICI Lombard enables us to bring to you the entire range

of insurance offerings for your personal and professional needs, with minimal

paperwork and at the comfort of your home or office. Select products can be

entirely bought online on ICICIdirect.com with instant policy issuance.

Fixed Deposits & Bonds

Corporate Fixed Deposits:-

We offer a range of Corporate Fixed Deposits varying in tenures, interest rates &

institutions to suit your investment needs. The deposit schemes have been

specially chosen from high-safety options to ensure that you enjoy the twin

benefits of returns and protection.

Why opt for Corporate Fixed Deposits?

If your risk appetite is low, fixed deposits are perfect for you. Since most of the

instruments are rated, corporate fixed deposits have a very high safety level.

Attractive returns at interest rates higher than banks's Fixed Deposits.

Higher Interest rates for senior citizens.

High liquidity; most of these issuers offer 75% of the investment amount as loan

@ 2% over the interest rate on the deposit, as well as a pre-mature withdrawal

Option.

Potential to earn compounding interest on your money by reinvesting the

principal amount along with the interest earned.

Flexible tenure - there are various tenures ranging from 1 to 7 years.

You can choose interest frequency; most issuers offer monthly, quarterly, bi

annual and annual cumulative deposits.

You get direct ECS credit facility for interest payments or advance interest

warrants for the year issued by most issuers.

Bonds:-

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Bond refers to a security issued by a company, financial institution or

government which offers regular or fixed payment of interest in return on the

amount borrowed money for a certain period of time.

Thus by purchasing a bond, investor loans money for a fixed period of time at a

predetermined interest rate. While the interest is paid to the bond holder at

regular intervals, the principal amount is repaid at a later date, known as the

maturity date. While both bonds and stocks are securities, the principle

difference between the two is that bond holders are lenders, while stockholders

are the owners of the organization. Another difference is that bonds usually

have a defined term, or maturity, after which the bond is redeemed, whereas

stocks may be outstanding indefinitely.

Customer also has the option of recurring interest along with Principal i.e

Cumulative Interest. Thus a bond is like a loan: the issuer is the borrower

(debtor), the holder is the lender (creditor), and the coupon is the interest.

Bonds provide the borrower with external funds to finance long-term

investments, or, in the case of government bonds, to finance current

expenditure. Bonds must be repaid at fixed intervals over a period of time.

Loans

ICICIdirect offers a wide variety of Loan Products from ICICI bank to suit

customer requirements. We strive to provide best of our products and services to

you at your doorstep. You can choose any of our below mentioned loan products

and provide us with your details online. Our representative will get in touch with

you for further processing.

Home Loans

The No. 1 Home Loans Provider in the country, ICICI Bank Home Loans offers

some unbeatable benefits to its customers- Doorstep Service, Simplified

Documentation and Guidance throughout the Process. It's really easy!

Car Loans

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ICICI Bank is the most preferred financer for car loans in the country with a

network of more than 1000 channel partners in over 200 locations. Tie-ups with

all leading automobile manufacturers to ensure the best deals. Flexible schemes

& quick processing. Hassle-free application process on the click of a mouse.

Loans Against Securities (LAS)

Loans Against Securities is an overdraft facility from ICICI Bank, given by way of

a current account against pledge of securities that you hold. Not only do you get

to hold on to your securities, but you are also able to generate funds without

selling your hard-earned assets.

online ICICIdirect Tax services

In today's busy world assessing one's tax well in advance and investing in right

tax saving products with optimum returns seems to be a difficult task., with

this also comes the pain of standing in long queues for filing the tax returns

timely.

You are Just 5 steps away from easing your Income Tax Worries:

Register for ICICIdirect TAX Services

Assess Tax Estimator and estimate your tax payable amount

Get your tax optimising investment options customised as per your life profile

Submit income & investment details and prepare your ITR instantly

File returns

Services on offer are:

Computation of taxable income and tax payable

Advice on tax optimization investments

Filing of tax return with the tax authorities

eLocker

ICICIdirect.com's eLocker helps you with the convenience and flexibility to store

and retrieve your important documents when you need them. You can store

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scanned copies of your Passport, PAN, Agreements or even medical reports

securely under your ICICI direct account.

eLocker helps eliminate your need to carry copies of your important documents

either as a physical photo copy or in storage devices like Compact Disks, USB

token etc.

With eLocker, you can store documents in one central secure location and know

that your documents are just a few clicks away.

Key Benefits:

Secure and Accessible - Your eLocker ensures that your documents are secure

and accessible only via a secure login.

Anywhere, anytime access - Your eLocker is available to you from anywhere, via

an Internet connection under your ICICI direct account login.

Durability and Longevity - Storage of documents in CD's or other portable media

is prone to handling them with care, your eLocker lets you store your documents

online, which ensures durability and longevity.

No storage or retrieval hassles - Since your documents are stored in a digital

format under your ICICIdirect account, the account is available to you wherever

you go.

Trade Racer

Trade Racer is a trading platform which provides you with Live streaming quotes

& Research Calls, integrated fund transfer system along with multiple watch list

facility. Power-packed with new features, TradeRacer gives you the power to

identify market opportunities while enjoying the attractive new look and feel of

the trading terminal.

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Relationship between 3 in 1 account in ICICIdirect.com

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Demat Account: Account where investors Shares are stored in electronic form.

TRADING ACCOUNT: An account which is used to place orders for Buying and

Selling of shares .So TRADING ACCOUNT is an interface between investors’

Bank account and investors’ Demat account, when investors’ buy something,

TRADING ACCOUNT takes money from investors’ Bank Account (Its already

taken from investors’ Bank account and saved in TRADING ACCOUNT) and buys

shares and stores it in investors’ Demat account. When investors’ sell

something, investors’ TRADING ACCOUNT takes back the shares from investors’

Demat account and Sells them in Stock Market and get back the money and

that goes back to your Bank account (actually you manually transfer it to Bank

account from trading account most of the times.

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Scheme for opening a Demat Account with ICICIdirect.com

Scheme

Name Details of the Scheme

Account

openingCharges

AMC Remarks

C03*:Customers have fixed deposit, recurring

deposit, home loan or mutual fund and sip(any

one) in ICICI bank or any other bank

Nil Nil

1st year AMC

charges will be nil

and 2nd year on

wards Rs.600/-

C01:

This scheme is only for few premium

companies employees i.e. INFOSYS, Tata,

Wipro etc.Nil Nil -do-

C02:

The customers have Demat Account in any

other bank and if the customer open a Demat

account in icicidirect.com

Nil Nil -do-

S17:

Scheme for those customer who are employed

other than mentioned in the above scheme and

if they open a Demat Account in

ICICIdirect.com

Rs.250/- Nil

1st year AMC

charges will be nil

and 2nd year on

wards Rs.600/-

S-GoldCustomer have no jobs, and no specific

accounts as mentioned above Rs.975/- Nil

1st year AMC

charges will be nil

and 2nd year on

wards Rs.600/-

* If any customer pays BSDA (i.e. Basic Demat Service) then AMC charges

will be nil, if someone trade up to Rs.1.5 lakh transaction then there will

be no charges.

If the transaction between Rs.1.5 lakh to Rs. 2 lakh, then AMC will be

charged Rs.100.

If the transaction Rs. 2 lakh and above then the AMC will be Rs.600.

Compare Brokers:

I - Saver Plan

Total Eligible Turnover

(Per calendar Quarter)Brokerage (%)

Effective Brokerage on

Intraday Square off

Above Rs 5 Crores 0.25 0.125%

Rs 2 Crores to 5 Crores 0.30 0.150%

Rs 1 Crores to 2 Crores 0.35 0.175%

Rs 50 Lakhs to 1 Crores 0.45 0.225%

Rs 25 Lakhs to 50 Lakhs 0.55 0.275%

Rs 10 Lakhs to 25 Lakhs 0.70 0.350%

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Less than Rs 10 Lakhs 0.75 0.375%

I - Secure Plan

Total Eligible Turnover

(Per calendar Quarter)

Brokerage (%) Effective Brokerage on

Intraday Square off

Irrespective of turnover 0.55 0.275%

ICICIDIRECT ADVANTAGES

3-in-1 account integrates your banking, broking and demat accounts. All

accounts are from ICICI and very well integrated. This feature makes ICICIthe most interesting player in ONLINE TRADING facility. There is

absolutely no manual interfere require. This is truly ONLINE TRADING

environment.

Unlike most of the online trading companies in India which require

transferring money to the broker's pool or towards deposits, at ICICIDirect

you can manage your own demat and bank accounts through

ICICIdirect.com. Money from selling stock is available in ICICI bank

account as soon as the ICICIDirect receive it.

INVESTMENT ONLINEin IPOs, Mutual Funds, GOI Bonds, and Postal

Savings Schemes all from one website. General Insurance is also available

from ICICI Lombard.

Trading is available in both BSE and NSE.

Low bandwidth website is available for slow internet connection or for

trading from mobile devices.

Through myGTC feature, you can place buy and sell limit orders in equity

scripts of your choice; specifying the period for which you want the order

instruction to be valid.

ICICIDIRECT DISADVANTAGES

ICICIDirect brokerage is high and not negotiable.

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ICICIDirect doesn't offer commodity trading. With ICICI TRADING

ACCOUNT you cannot trade at MCX or NCDEX.

With ICICIdirect.com e-Invest account (3-IN-1 concept), the Demat

Account has to be opened with ICICI Bank Ltd as the Depository

Participant (DP) and the Bank Account has to be opened with ICICI Bank

Ltd. as the Banker.

ICICI minimum brokerage charge is Rs 35 per trade which is very high for

traders who does small trades.

ICICI Charges Rs 75 per month fee for using Trading Terminal (Trade

Racer) if customer pays brokerage of less then Rs 750 per month.

ICICI charges flat Rs 0.05 per share brokerage on stocks quoting upto Rs 10.

This makes it very difficult to trade in PENNY STOCKS.

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7. LITERATURE REVIEW

INVESTMENT

Investment may be defined as an activity that commits funds in any financial

form in the present with an expectation of receiving additional return in the

future. The expectations bring with it a probability that the quantum of return

may vary from a minimum to a maximum. This possibility of variation in the

actual return is known as investment risk. Thus every investment involves a

return and risk.

Investment is an activity that is undertaken by those who have savings. Savings

can be defined as the excess of income over expenditure. An investor

earns/expects to earn additional monetary value from the mode of investment

that could be in the form of financial assets.

The three important characteristics of any financial assets are:

Return – the potential return possible from an asset

Risk – the variability in returns of the asset from the chances of its value going

down/up.

Liquidity – the ease with which an asset can be converted into cash.

Investors tend to look at t these three characteristics while deciding on their

individual preference [pattern of investments. Each financial asset will have a

certain level of each of these characteristics.

Golden Rules of Investment:

Start savings as soon as one starts earning and start investing immediately.

Investment to be in a regular interval.

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Investment should be for long term.

Not to put all egg in one basket (diversify in investment)

Investment considerations:

When considering an investment plan, careful consideration needs to be given to

–

1.Investment goals

2.Time available for working with investments

3.Knowledge of investments

4.Available funds for investing.

5.Ability to absorb the extent of loss.

6.Present financial situation.

7.Risk tolerance.

Basic aim of investing is generally to increase the net worth and work towards

long term goals. Investing involves risk. For example, earnings generally are not

guaranteed and one may loose some of his original investment (principal

amount).

Before someone goes for investments, consider getting his general financial

situation under control first, such as

1.An emergency fund.

2.Some savings for short term goals

3.Adequate insurance

4.Control over credit use

5.Retirement plan.

Investment Selection Criteria:

Commonly accepted criteria for evaluating types of investment, as well as

specific investments, include

• Risk

• Return

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• Liquidity and Marketability

• Cost

• Diversification

• Taxes

• Efforts and expertise

Care to taken while investing:

Before making any investment, one must ensure to:

1.Obtain written documents explaining the investment.

2.Read and understand such documents and verify the legitimacy of the

same.

3.Find out the cost and benefits associated with the investment and assess

the risk-return profile of the investment.

4.Know the liquidity and safety aspects of the investment

5.Ascertain if it is appropriate for your specific goals and compare these

details with other investment opportunities available

6.Examine if it fits in with other investments you are considering or you have

already made.

7.Deal only through an authorized intermediary

8.Seek all clarifications about the intermediary and the investment.

9. Explore the options available to you if something were going to wrong, and

then, if satisfied, make the investment.

CRITERIA FOR EVALUATION OF INVESTMENTS

For evaluating an investment avenue, the following criteria are relevant:

Rate of Return

The rate of return on an investment for a period (usually a period of one year) is

defined as follows:

Rate of return = Annual Income + (Ending Price – Beginning Price) / Beginning

Price

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Risk

The rate of return from investments like equity shares, real estate, silver, and

gold can vary rather widely. The risk of an investment refers to the variability of

its rate of return like how much do individual outcomes deviate from the

expected value? There are some measures which are used to measure risk such

as:

1. Dispersion

2. Variance

3. Standard Deviation

4. Beta (This reflects how volatile is the return from an investment relative

to market swings.)

Marketability

An investment is highly marketable or liquid if,

1. It can be transacted quickly

2. The transaction cost is low

3. The price change between two successive transactions is negligible. The

liquidity of a market may be judged in terms of its depth, breadth, and

resilience. Depth refers to the existence of buy as well as sell orders around the

current market price. Breadth implies the presence of such orders in

substantial volume. Resilience means that new orders emerge in response to

price changes. Investors value liquidity because it allows them to change their

minds. They can correct errors they may have made quickly and cheaply.

Further, they can easily modify their investments in line with changing

circumstances and objectives.

Tax Shelter

Some investments provide tax benefits and some do not. Tax benefits are of

three types:

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1. Initial Tax Benefit: It refers to the tax relief enjoyed at the time of

investment.

2. Continuing Tax Benefit: It represents the tax shield associated with the

periodic returns from the investment.

3. Terminal Tax Benefit: It refers to relief from taxation when an investment

is realized or liquidated.

Convenience

It refers to the ease with which the investment can be made and looked after.

The degree of convenience associated with investments varies widely.

COMMON ERRORS IN INVESTMENT MANAGEMENT:

Investors appear to be prone to the following errors in managing their

investments. Some of the common errors are:

Inadequate comprehension of return and risk

Vaguely formulated investment policy

Naïve extrapolation of the past

Cursory decision making

Untimely entries and exits

High costs

Over – diversification and under – diversification

Wrong attitude toward losses and profits

QUALITIES FOR SUCCESSFUL INVESTING

The game of investment requires certain qualities and virtues on the part of the

investors, to be successful in the long run. The following qualities which are

mostly found are:

• Contrary thinking

• Patience

• Composure

• Flexibility and openness

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• Decisiveness

Types of Investment:

1.Investment in real estate, gold/jewellery, commodities etc. are known as

Physical Assets Investment.

2.Investment in fixed deposits with bank, post office, insurance, PPF, Pension

Fund or securities market like shares, bonds, debentures etc. is known as

Financial Assets Investment.

In this report I have only considered those investments which are only

trading at stock exchange in dematerialize form.

WHAT IS DEMAT ACCOUNT?

In India, a Demat Account, the abbreviation for dematerialization account, is a

type of banking account which dematerialization paper-based physical stock

shares. Conversion of Securities from Physical (Paper) Mode into Electronic

Mode is called Dematerialization. The client opens Demat Account with any

Depository Participant. Up on Demat, the Certificates are destroyed and credit

entry of exactly equal number of Securities is created in Depository in

Electronic mode. The Beneficiary Owner (.i.e. BO) account of holder is created

and the securities loose their identities. The dematerialized account is used to

avoid holding physical shares: the shares are bought and sold through a stock

broker.

This Demat Account is popular in India. The market regulator, securities and

exchange board of India (SEBI) mandates a demat account for share trading

above 500 shares. As of April 2006, it became mandatory that any person

holding a demat account should possess a permanent account number (PAN),

and the deadline for submission of PAN details to the depository lapsed on

January 2007.

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Dematerialization is the process by which physical certificates of investors are

converted to an equivalent number of securities in electronic form and credited

in the investor’s account with the DP. In order to dematerialized certificates; an

investor will have to first open account with a DP and then request for the

dematerialization of certificates by filling up a dematerialization form (DRM),

which is available with DP and submitting the same along with physical

certificates. The investors have to ensure that before the certificates are handed

over the DP for demat, they defaced by making “Surrendered for

Dematerialization” on the face of the certificates.

Account Opening

To avail the service of a depository an investor is required to open an account

with a depository participant of any depository.

Procedure for opening an account:

A demat account are opened on the same lines as that of a Bank Account.

Prescribed Account opening forms are available with the DP, needs to be

filled in. Standard Agreements are to be signed by the Client and the DP,

which details the rights and obligation of both parties.

The DP officials will make available the relevant account opening form

(depending on whether the client is a retail investor or corporate

client/clearing number) and specify the list of documents regarding

references that should be submitted along with the form. It will also give a

copy of the relevant agreement to be entered with the client, in duplicate.

The client will submit the duly filled in account opening form and client

has to visit personally for opening the account in DP. The DP officials have

to do in person verification and affix the “IN PERSON VERIFICATION”

stamp on the account opening form. It should also furnish such

documents regarding references, as specified by the DP, along with the

account opening form. After executing the agreement the client has to

forward it to the DP.

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The DP officials will verify that the account opening form is duly filled in.

It will also verify the enclosed documents, if any. Incomplete forms will

forward to the client for rectification.

For corporate Clients, the DP officials will verify if the board resolution for

the authorized signatories is enclosed.

In case the documents are not proper, the DP officials will reject the form

and intimate the client of the same, stating the reasons for doing so.

If the form is in order; the DP officials will accept the same and affix the

stamp “verified with original” on each and every proof after seeing the

original proofs.

After completion of all documentation, the DP officials will verify the pan

from income tax website. And affix the stamp “PAN VERIFIED” with date

and sign on the stamp.

The DP officials will enter the client details as mentioned in the account

opening from in the DPM (software provided by the NSDL & CDSL to the

participant) screen provided for the purpose. In case of NSDL Account

opening the SR. Assist will capture all the details in the DPM and record

the client’s signature (on the form) as specimen for authorization in the

future.

After entering client details in the system, a client account number will be

generated by the DPM. The DP officials will enter this in the account

opening from. After that the officers will verify the details in the DPMcaptured by the SR. Assist and activate the account.

The DP officials are not allowed to give the demat account no to the clients

until the account is activate, this is applicable for both NSDL & CDSL.

When the demat account is activated, the DP officials have to send the

client master and the copy of the agreement between DP and client at the

client’s address.

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The account holder is called “Beneficial Owner” in a depository system and

the account is known as “Beneficiary Account”.

No minimum balance is required to be retained in a beneficiary account.

An investor can close a beneficiary account with one DP and open an

account with another DP.

The dematerialization existing physical holdings, the beneficiary account

must be opened in the same ownership pattern in which the securities are

held in physical form e.g. if one certificate is in individual name and

another certificate is jointly held by X and Y, two different account should

be opened. However, in case of joint holders, securities can be

dematerialized in the same account even through share certificates are in

different sequence of names, e.g., shares held in joint names of X and Y

can also be dematerialized in an account opened in the name of Y and X

as well by submitting an additional form (Transposition Form) along with

Demat Request Form to the DP. However, shares held jointly by X and Y

cannot be dematerialized in an account opened in the name of only X or

only Y or any.

DOCUMENTS SHOULD BE REQUIRED FOR DEMAT ACCOUNT

Proof of Identity (POI):

Passport

Voter ID Card

Driving License

PAN card with photograph

Identity card with applicant’s photograph issued by

Central Government

Statutory/regulatory authorities

Public Sector undertakings

Scheduled commercial Banks

Public Financial Institutions

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College affiliated to Universities

Proof of Address (POA):

Ration Card

Passport

Voter ID card

Driving License

Bank Passbook

Verified copies of:

1.Electricity bill (not more than 2 months old)

2.Residence landline telephone bill (not more than 2 months old)

3.Leave and License agreement/ agreement to sell (duly attested)

4.Self declaration by supreme court/high court judges, giving the new

address in respect of own accounts

Identity card with applicants photograph issued by

Central or State government and its department

Statutory/regulatory authorities

Public Sector undertakings

Scheduled commercial Banks

Public Financial Institutions

College affiliated to Universities

Passport size photograph

Copy of PAN card along with original PAN card for verification.

Bank details:

Copy of cancelled cheque with name from the bank.

Copy of bank passbook with name and address and copy of cancelled

cheque.

Bank statement with name and address (duly authorized by the bank, if

statement is on plain paper) not more than 4 months old and copy of

cancelled cheque of MICR & bank details verification.

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In case of minor

Date of birth certificate duly notarized.

Proof of address and identity documents of the guardian both minor and

guardian’s photograph and guardian to sign across both photographs.

PAN card of minor as well guardian in mandatory.

In case of NRI

Foreign address and RBI approval date attested copy RBI approval

NRO-Indian address along with proofs

Bank account details

In case of Joint-holdings

In case of joint holdings, POI and POA documents along with PAN card must be

submitted in respect of all account holders. Original documents must be taken

to the DP for verification.

The DP will also provide a copy of the DP Client agreement.

DP account opening form requires the applications to give the following details:

Name (s) of the account holder (s) – The investor should ensure that the

name is identical to that which appears on the certificate (s) to be

dematerialized. In case of joint holdings, account may be opened in any

one combination, irrespective of the sequence in which names are

appearing on share certificates. Investors are advised to open their

account in their fully expanded name, i.e. to spell to the first name as well

as the middle name. This would obviate any doubts about the veracity of

the information.

Mailing and communication address(es) – The veracity of the applicant’s

address is determined through the documents submitted for verification

like ration card, passport, voter ID, PAN card, driving license, bank

passbook, etc. For NRI accounts, proof is required for both address – that

of the account holder as well as the constituted attorney. For corporate

accounts, a copy of Memorandum of Association, Article of Association,

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Board resolution permitting opening of account, the registered address of

the company have to be furnished.

Details of guardian in case account holder is a minor – Only a guardian

can open a depository account for a minor. The guardian is required to

sign the application form, and details of his name and address need to be

given in addition to the details of the minor.

Foreign Address and RBI approval details for NRI, FII, or OCB accounts –

For foreign based applicants like NRIs, FIIs, and OCBs etc., the applicant

must furnish original or attested copies of the power of attorney and the

approval letter from RBI permitting them to invest, as the case may be. If

the account holder is a FII or an OCB, SEBI registration details along with

attested copy of registration certificate issued by SEBI and authorization

letter is required.

Details of bank account – Details of bank account of the account holder,

including the nine digit code number of the bank and branch appearing on

the MIRC cheque issued by the bank have to be filled in the application

form. Companies use this information for printing them on dividend/

interest warrants etc.

Nomination declaration – A beneficial owner can make a nomination of his

account in favour of any person by filing the nomination form with his DP.

Such information is considered to be conclusive evidence of the account

holder’s disposition in respect of all the securities in the account for whichthe information is made.

Standing instruction – A facility of standing instruction is provided to the

investors for receiving securities to the credit of their accounts without

giving a separate receipt instruction.

The demat account cannot be operated on “either or survivor” basis like

the bank account. In case of the joint account for the beneficial owners,

all joint holders have to sign the account opening form.

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The investor will submit to his DP the duly filled in account opening form

and DP-client agreement along with documents.

The DP will verify whether the account opening form has been duly filled

in or not. He will also verify the submitted documents. For corporate

investors, the DP will also verify whether the Board resolution for the

authorized signatories has been enclosed. The DP will ensure that client’s

signature is recorded on the form which will serve as specimen for

authorizations in future.

If the application form and documentation are in order, then the DP will

accept them and give an acknowledgement slip duly signed and stamped

to the client. The DP will execute the agreement and give a copy of it to

the client.

After completion of all documentation, the DP will enter the client details

as mentioned in the account opening from in the DPM (software provided

by the NSDL to the DP) screen provided for the purpose. After entering

client details in the system, a client account number will be generated by

the DPM. The DP will enter this in the account opening form.

On successful opening of the account, the DP will give:

1.Client ID – an eight digit number to be used along with DP ID for any

future transactions.

2.Delivery Instruction slip book.

3.A copy of the report listing the client details captured in the DPM database

to the client. The report will be generated by the DPM

PRE REQUISITES FOR DEMATERIALIZATION REQUEST

1.The registered holder of the securities should make the request.

2.Securities to be dematerialized must be recognized by NSDL/CDSL as

eligible. In other words, only those securities, whose ISIN has been

activated by NSDL/CDSL can be dematerialized.

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3.The company/issuer should have established connectivity with

NSDL/CDSL. Only after such connectivity is established that the securities

of that company/issuer are recognized to be “available for dematerialization”

4.The holder of securities should have a beneficiary account in the same

name as it appears on the security certificates to be dematerialized.

5.The request should be made in the prescribed dematerialization request

form.

REASONS FOR DEMATERIALIZATION REQUEST REJECTION:

1.The quantity of shares mentioned in the DRF is more than the actual

certificates sent.

2.The certificates sent are fake on the face of documents

3.The certificates sent are reported stolen

4.Original certificates present are those for which the duplicates have already

been issued

5.Endorsements on the certificate are forged.

6.Securities stand on a different name than those mentioned in the DRF.

7.The details mentioned on the certificates do not match with the details on

the DRF, or the order of the holders name on the DRF is different from the

name given on the certificates. The scrutiny by the DP is incomplete.

8.The securities attached/DRF does not pertain to the R&T Agent to whom the

DRF is sent.

9.Electronic request received but physical certificate are not received within 15

days

10. Specimen signature on the DRF differs from the signature recorded with

the Registrar/ Transfer Agents

11. The certificates sent have a court injunction against them.

Precautions:

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1.Corporate investors to enclose Memorandum of Association/Trust

deed/Board resolution for the authorized signatories along with the account

opening form.

2.Details with respect to the bank account details of an investor must be

indicated in the space provided for the same in the account form.

3.If an investor is interested in availing the facility of standing instructions for

credits to his account, then such instruction may be given to the DP.

Otherwise, he will need to give a receipt instruction to his DP for receiving

credits to his account.

BENEFITS OF DEMATERIALIZATION

No stamp duty for transfer of securities in the Depository System. In the

case of physical shares, stamp duty of 0.25% of sale value is payable on

transfer of shares

Elimination of bad deliveries and all risks associated with physical

certificates such as loss in transit, theft, mutilation, damage. etc.

Facility for freezing/locking of investor accounts to make it non-operational

for specified period.

Instead of filling up transfer deed (s) a simpler form is to be given to the DP.

Facility to pledge and hypothecate securities. Pledging Dematerialized

securities is easier and advantageous as compared to pledging physical

shares. In respect of shares in “compulsory Demat” category, banks prefer

to lend against share held in electronic form, and offer better terms.

Odd lots are not differentiated in the electronic system. Even a single share

can be traded at the market rates without any reduction in realization.

Just like a bank branch, the DP will give a periodical statement of account

of holdings. In addition, investor can obtain a statement of holding as and

when required for a fee.

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In case investor loses the statement of holdings, he can inform his DP and

obtain a duplicate statement. Investors’ statement of holdings cannot be

used by anybody else for trading in his account.

When an investor opens an account with a DP, he signs an agreement with

the DP in which the DP will indemnify the investor for any misuse of his

holdings. The depository will also ensure that the interests of the investor

are protected. Grievances, if any, against his DP will be resolved by the

Depository.

Every transaction in investor’s account will have to be authorized by him,

which ensures total control of the investor over his investment.

A safe and convenient way to hold securities and there is immediate transfer

of securities.

Change in address recorded with DP gets registered with all companies in

which investor holds securities electronically eliminating the need to

correspond with each of them separately.

Reduction in paperwork involved in transfer of securities and reduction in

transaction cost.

Automatic credit into demat account of shares, arising out of

bonus/split/consolidation/merger etc.

INFORMATION NEEDED FOR DEMAT ACCOUNT

An investor has to give his bank account details at the time of account opening.

It is for the protection of investor’s interest. The bank account number will be

mentioned on the interest or dividend warrant, so that such warrant cannot be

encased by anyone else. Further, cash corporate benefits such as dividend,

interest will be credited to the investors account directly through the ECS

(Electronic Clearing Services) facility, wherever available, by the company.

An investor can change the details of his bank account. Since the depository

system monetary benefits on the security balances are paid as per the bank

account details provided by the investor at the time of account opening, the

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investor must ensure that any subsequent change in bank account details is

informed to the DP.

An investor should immediately inform his/her DP if the address of the investor

changes, who in turn will update the records. This will obviate the need of

information different companies.

An investor can open more than one account in the same name with the same

DP and also with different DPs.

An investor has not to keep any minimum balance of securities in his/her

accounts. Depository/DP can be chosen by investor as per convenience

irrespective of the DP of the broker.

The Demat account must be opened in the same ownership pattern such as

securities owned individually in which the securities are held in the physical

form e.g. if one share certificate is in the individual name and another certificate

is jointly with somebody, two different account would have to be opened.

PHYSICAL SEGMENT

Change in Name/Status:

All requests for change in name should be accompanied by a copy of the

notification in Official Gazette or a Newspaper.

Request for change of name consequent upon marriage/divorce should be

accompanied with marriage certificate/divorce decree.

For effecting change status from minor or major, please send proof of age

(such as attested copy of Birth Certificate or School Leaving Certificate)

In the case of limited companies, a certified copy of Certificate of

Incorporation consequent to Change of Name issued by the Registrar of

Companies should be submitted along with Memorandum & Articles of

Association.

The new specimen signature duly attested by holder’s banker should be

lodged with the Company to take on record the new signature.

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Change of Address:

Please inform the R&TA viz Integrated Enterprise (India) Limited immediately if

there is any change in address, quoting Folio No. duly signed by the main (1st)

holder as per specimen signature recorded with us. This is the reason for which

we would advise the holder not to send change of address request by mail. If

share are held in demat form, please advice client DP regarding change of

address.

Loss of Share Certificates:

Any communication to the company regarding loss of share certificates should

always be signed by the shareholder as per specimen signature registered with

the Company, accompanied by FIR lodged with local police station giving full

details of lost certificate(s) such as certificate(s) Nos, Distinctive No.s etc.

Immediately apply for injunction order in appropriate Court of Law for stopping

transfer, giving full details of Certificate Nos., Distinctive Nos. etc.

Upon receipt of such communication, the procedure to be followed for obtaining

duplicate share certificates will be advised.

NOMINATION

Nomination when share are held in physical form

Nomination will enable smooth inheritance of ownership of the shares by the

Nominee without any procedural difficulties. (Presently, there is no difficulty

where share are registered in joint names. But if the shares are held in an

individual name, addition of a joint name can only be done as a transfer,

involving share transfer form, stamp duty, surrender of original certificates etc.

Following the nomination procedure eliminates all this inconvenience.)

Therefore, if shares are held in a single name, with the intention of holding them

for some more time, then please advise nomination immediately without delay.

Following instruction for the Nomination

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Nomination can be made only by individuals, holding shares on their own behalf

singly or jointly. Non-individuals including society, trust, body corporate,

partnership firm, Karta of Hindu Undivided Family, holder of Power of attorney

cannot nominate. If the shares held jointly, all joint holders must sign the

nomination form.

A minor can be nominated by a holder of shares and in that event the name and

address of the Guardian must be given by the holder.

The nominee shall not be a trust, society, body corporate, and partnership firm,

Karta of Hindu Undivided Family or a power of attorney holder. A non-resident

Indian can be nominee or repatriable basis.

Nomination will stand cancelled upon transfer of shares.

The company will be fully discharged from its responsibility towards the legal

heirs of a shareholder, if the shares are transmitted as per the nomination filed

with the company, without any further reference to the legal heirs of a deceased

individual shareholder(s)

Where the space provided in the Form is not sufficient, shareholder are

requested to attach separate sheet(s) giving details of distinctive nos. of shares.

The Nomination Form should be filed in duplicate with the Company, who will

return one copy thereof to the shareholder.

Although Form 2B as prescribed does not provide for specimen signature of

nominee, this has been in order to facilitate smooth transmission of title to the

nominee when the need arises.

Please not that if physical shares are subsequently converted into electronic

form, any nomination already filed will cease to have effect: the nomination

details furnished to the Depository Participant will prevail thereafter.

ISIN

International Securities Identification Number (ISIN)

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Each of the securities dematerialized in the NSDL depository bears a distinctive

ISIN-identification number. International Securities Identification Number (ISIN)

is a unique identification number for each security issued in any of the

International Standard Organization (ISO) member countries in accordance with

the ISIN Standard (ISO 6616). ISO 6166 was developed for use in an

international (cross-border) as well as domestic trades. ISIN is a 12-character

long identification mark. It has three components – a pre-fix, a basic number

and a check digit. The pre-fix is a two-letter country code as stated under ISO

3166 (IN for India). The basic number comprises nine alphanumeric characters

(letter and/or digits). The check digit at the end of the ISIN is computed

according to the modules 10 “Double-Add-Double”. It establishes that ISIN is

valid.

Securities issued by the same company, issued at different times or carrying

different rights, terms and conditions are considered different securities for the

purpose of allocating ISIN and are allotted distinct ISINs. In India, SEBI assign

ISIN to various publicly traded securities. Different ISINs are allocated to the

physical and dematerialized securities of the same issue.

SEBI being the national numbering agency for India has permitted NSDL to allot

international securities identification number (ISIN) for demat shares. The ISINs

allotted by NSDL does not at any option of time breach the uniqueness of ISIN of

physical form of the same security. ISIN for a security is allotted when the

security is admitted to NSDL. This numbering system is simple. The numbering

system of NSDL is in compliance with the structure of ISIN adopted by SEBI

International Securities Identification Number:

1.Issued by International Standard Organization (ISO) member countries

in accordance with ISO 6166.

2.ISIN is 12 digit alpha numeric numbers.

3.It has three components, prefix, basic & check digit.

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4.Prefix is a two letter country code i.e. IN for India.

5.The basic number has nine alphanumeric characters

6.The last digit is check digit. It ensures the ISIN is valid.

Numbering system of ISIN

The numbering system of securities in NSDL is of 12 digit alphanumeric string.

The first two character represent country code i.e. IN (in accordance with ISO

3166). The third character represents the issuer type as detailed below:

Issuer type:

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DEMAT PROCESS:

1.The registered holder of the securities makes the request.

2.Securities must be recognized by Depository as eligible.

3.Client submits DRF & physical certificates to DP. DP checks securities.

4.Client defaces certificates and DP punches two holders on name of

company.

5.DP enters demat request in system for Depository.

6.DP dispatches certificates along with DRF to R&T.

7.Depository records the details and sends to R&T.

8.R&T agent verifies the details and confirms to depository.

9.Depository credits the demat securities to Beneficiary Owner account of

client and intimates DP electronically.

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The DP sends Share

certificates to R&T agent

for Dematerialization


DEMAT-PROCESS

54

WITH PHYSICAL CERTIFICATE

Shareholder gave to DP with his

physical share Certificates

Shareholder opens his account

with DP

Shareholder fills DRF in

duplicate, defaces the shares and

hand over to DP

DP sends information

electronically to Depository

Upon confirmation of Demat by

R&T Agent, the Depository

confirms Dematerialization

RTA

AGENT

SHAREHOLDERS

DEPOSITORY

PARTICIPANT

ACCOUNT

OPENING

DEMAT REQUEST

FORM (DRF)

DEPOSITORY

DEMATERIALIZATION

CREDIT TO THE BO

A/C OF THE INVESTOR

DEMAT Process:


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8. DATA COLLECTIONS AND ANALYSIS.Research is conducted for findings the solution of this problems? So to find the

solution to the problem data analysis and interpretation is must. There are

some questions related to this project research to interpret the result.

As an account holder of ICICI Bank, do you hold any of the following

Instruments?

The purpose of the question is to know about the holding of customers other

than their saving bank account with in the ICICI bank.

Holding of different instruments other than Saving Account.

Interpretation:

In the above bar chart it clearly shows that from a sample size of 50,

respondents, 35 individuals have invested their money in RD (recurring deposit),

which gives them a freedom to make minimum investment of Rs. 600/- per

month, and more than that needs multiples of Rs. 100/- per month.

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Are you aware of the 3-in-1 A/C of ICICI bank?

The basic purpose of this question is to know about awareness of 3-in-1 A/C

among the respondents.

Awareness of the 3-in-one Account.

Interpretation:

The above pie chart clearly shows that the sample size of 50 respondents, 26

individuals were aware of demat account. So it can also be possible investor will

rise in near future.

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Are you satisfied with the brokerage plan of ICICI direct?

The basic purpose of the question is to know about the satisfaction of existing

customers of ICICI direct.

Satisfaction level of Customers

Interpretation:

The above column chart it clearly shows that from a sample size of 50

respondents, 35 individuals are somewhat satisfied, that means ICICI direct

needs to reduce its brokerage charges to meet its customers’ requirements.

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Categorize the level of your satisfaction in dealing with ICICI Group?

The purpose the question is to know about the level of satisfaction of customers

regarding the overall performance of the ICICI group.

Satisfaction level of Customers

Interpretation:

The above column chart it clearly shows that from a sample size of 50

respondents, 33 individuals are given a good satisfaction level to the overall

performance of the ICICI Group. It means the feedback received by the customer

is satisfactory.

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9. FINDINGS AND SUGGESTIONSICICIdirect.com is providing best platform to make investments in a variety of

instruments and avenues, but due to lack of awareness among the investors,

which creates the roadblocks. Therefore investors are not willing to take high

risk and they do not want to invest their money in highly volatile securities

market. If ICICIdirect.com organizes 3 to 5 awareness programme in a month

for the benefit of prospective and existing customers then it will gain confidence

from prospective customers as well as the existing customers. The transparency

must exist between the ICICIdirect.com and its customer for the genuineness of

doing the business in a right manner. Investors only invest their money and

time when they believe that the blueprint of the company’s ideas is genuine and

achievable.

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10.CONCLUSION As many of the people who dealt in share market are aware of

ICICIdirect.com name but not of its services. So company should advertise

its services, so that people can be made aware of all the services provided

by the company.

Most of the people are not finding any spare time to convert their shares

electronically. So company should approach to such people at their

doorstep to open their Demat account.

As far as people preference regarding opening of Demat account is

concerned then they mainly prefer two factors i.e. service and trust. So it

becomes necessary for the company to take care of these two factors.

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BIBLIOGRAPHYGathered information from ICICIDIRECT.com

Referred related articles, references, journals and certain websites.

Material provided by ICICIdircet.com

Web Sites:

www.5paisa.com

www.googlesearch.com

www.nationalstockexchange.com

www.moneycontrol.com

www.sdls.com

Investment Needs Analysis Draft

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