Professional Documents
Culture Documents
MBA is a professional course wherein for a student to posses only theoretical knowledge
alone is not enough but also to improve practical skill which is helpful to them in every
field of life in their future. Students need to have a practical implementation in the current
scenario.
Experience is the best teacher's. This saying is very well applicable in everyone's life.
Therefore as a student of management it must apply to me also. Then the question arises
that from where we can get this experience. Obviously we must undergo practical
Training. To serve this purpose I had undergone eight weeks summer training at ICICI
securities limited and as an outcome I have prepared this project report.
This project report on COMPETITIVE ADVANTAGE OF ICICI DIRECT .This
project also deals with various activities of ICICI securities limited. The experience of
this training will be useful in my future.
It is my pleasure to present work after I had finished my training at ICICI securities
limited. This training has expanded my horizon of knowledge in practical as well as
theoretical, which is vital for any student in management level studies. After completion
of this training I come to know that when we study theory but practice it is very difficult
to understand. Therefore to serve dual purpose of practical training has been made
compulsory for the student of MBA.
Such training promotes a student to boost his potentials and the inner qualities, and
thereby students come to know about their reality that how the theoretical knowledge
works in actual sense in any unit. This has indeed proved to be very useful to me.
A1l information given here are correct and true according to me, and sincerely apologize
if incorrect data.
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ACKNOLEDGEMENT
First of all I would like to express my sincere gratitude to Mr.Subhendu Das, Area
manager of ICICI securities limited, Athwagate Surat brance for allowing me for summer
training at ICICI securities limited.
I heartily feel thanks to Mr.Bhavesh Patel ,sales manager who provide me valuable
suggestions and guidance at every stage of my summer training.
I would like to express my gratitude to
; my project mentor and other
faculty member of SOM LALIT INSTITUTE OF BUSINESS MANAGEMENT,
Ahemedabad for guide me.
I would like to thank following persons who help me lot in my summer training.
Mr.Imran Dabhi, sales manager, ICICI securities limited
Mr.Jignesh Nayak, sales manager, ICICI securities limited
Mr.Amit Kumar, sales manager, ICICI securities limited
I also thank to sales Executive for opening Demte account, which have been helpful and
faithful enough to give the required information, which helped my project to be great
success, which was the main and important part of my project. I feel happy indeed and it
has given me a lot of pleasure in company.
Last but not the least I would like to extent my deep sense of gratitude to my family and
all whom guided and helped me during my training period.
Place: Surat
Date: July-2008
Sunil K. Patel
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EXECUTIVE SUMMARY
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INDEX
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LIST OF TABLE
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LIST OF FIGUERS
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INTRODUCTION
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The Indian capital market has witnessed numerous changes in the recent
past. Historically stock market booms have always resulted in a number of problems for
the lay investor. Sometimes, the problem may magnify them and threatens to engulf the
entire capital market. A close introspection of these problems will reveal that most of
them are due to intrinsic nature of paper based trading and settlement. All this may have
driven away many potential investors and Foreign Institutional Investors.
Dematerialization of shares is looked upon as the remedy for the paper based problems.
With effect from august 19, 1998 SEBI has granted certificate of registration of
Central Depository Services (I) Ltd. (CDSL).
Yet even with demat, from the point of view of investors there are numerous
problems. Here Wallet Watch introduces you to setting up of a demat account and
introduction of scrip less trading and settlement. There are numerous benefits of this scrip
less trading and settlement, which Wallet Watch has discussed in detail.
COMPANY PROFILE:
2.1 INTRODUCTION ABOUT THE COMPANY
Even as the European and American stock markets reckon with the changes brought
about by the Internet and IT/telecom advances, the Indian stock market has quickly
moved to global standards.
The sheer breadth of the changes since the National Stock Exchange started
operations in 1994 and with the Securities and Exchange Board of India (SEBI) also
driving the changes in the market system, have enabled the Indian market to move well
ahead in just five years.
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Even as online automated trading and better clearing and settlement mechanisms
have been put in place, perhaps, the most significant change in the Indian market has
been the coming of paperless trading; it may well be a precursor to the next big changes
rolling settlements and Internet trading. But the push towards paperless trading stands out
even in a decade when the market landscape has changed beyond recognition.
Dematerialization (holding and trading securities in paperless mode) was an
alien concept in India before 1995; in five years, large quantities of paper have been
flushed out of the system. Since the entry of the foreign institutional investors (FIIs) and
online trading, the old system, laden with paperwork at every conceivable stage, was out
of place in an otherwise fast trading environment.
As the FIIs complained about the paperwork as a major constraining
factor, the government and SEBI took notice. The requisite legislative changes were put
in place quickly - the Depositories Act, 1996 was passed and the NSE, with the UTI and
the IDBI, set up the National Securities Depository Ltd (NSDL).
But the depository concept did not gain popularity; the FIIs which
had clamoured for its introduction, now ignored it. The reason: Lack of liquidity. But,
unless the institutional investors stepped in, there could be no liquidity. This stalemate
frustrated the push for a paperless environment.
Until SEBI stepped in, that is.
With regulatory pushes SEBI, in phases, made demat trading in stocks
mandatory for institutions first and, then, for all investors. Mandatory paperless trading,
forced the FIIs to dematerialise their holdings quickly.
As a consequence of SEBI's action, most major stocks are traded in the
paperless mode now. The second phase will involve some 200 stocks in a few months
time. The effect of SEBI's action is evident from NSDL's statistics. A total of 698
companies, with a market capitalisation of Rs. 7,37,300 crores (almost 80 per cent of the
market capitalisation of all listed stocks), is enrolled with the NSDL.
With 13.65 billion shares in the demat mode, nearly 19 million investor
accounts, and securities valued at Rs. 3,96,800 crores ($91 billions) actually
dematerialised, the concept of dematerialisation can be said to have taken roots. If the
regulatory direction is any indication, more paper will be flushed out of the system in the
next two years.
The costs of dematerialisation have declined as the NSDL slashed charges as
volumes expanded and the competition _ from the Central Depository Services Ltd
(CSDL) floated by the BSE _ started in 1999 second half. A series of measures by SEBI
and NSDL also helped ease the strain faced by retail investors.
From a long-term perspective, demat in India is of considerable
significance. Not only has the general trading environment improved and quickened,
volumes too have perked up, even in the demat segment. With demat taking off, there is
now scope for an improvement in the quality of investor services.
As a consequence of dematerialisation, the Indian market is also well
prepared for web-based trading though the quality of telecom infrastructure and
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inadequacies in the banking system-stock exchange linkages may cause delays. Notably,
with regard to the thrust towards paperless trading, the Indian market managed in three
years what took even the US much longer.
With a high degree of dematerialisation a reality, the stage is set for rolling settlements
and web-based trading. Once these are in place, the Indian market will have moved closer
to the standards in advanced markets, such as the US. And paperless trading may well be
the catalyst for such a rapid advancement.
2.2 HISTORY OF THE ORGANIZATION:
The dematerialized form of shareholding and the depository mode of
trade (scrip less trade) have been in operation in developed financial markets for over 15
years. In India, the first depository commenced operation a decade back and is relatively
new. The Indian financial market is in need of both scrip-based and scrip less trade, but
the investing community, which is used scrip-based trade, is bound to take some time to
accept the latter. The scrip less trading, till now a domain of the western world,
institutional investors and GDR holders is now mandatory even for small investors. All
those who hold physical share certificates have to get them dematerialized. If they do not,
they will be forced to do so at the time of sale.
The countless numbers of conservative Indians have to digest it,
whether they like it or not. First, the institutional investors succumbed. Then the high net
worth individuals, trading in more than a certain numbers of shares, were forced to give
in. now, it is the turn of the small investors of select-companies.
With their share certificates being replaced by small slips and receipts,
naturally the average investors will have their share of fears and apprehensions. It is
necessary to educate and convince these investors about the benefit of Demat rather than
forcing them to take part in the game.
2.3 Companys Vision:
To make ICICI Direct the dominant online share trading by world class people and
services.
This we hope to achieve by:
Understanding the needs of customers and offering them superior product and
service.
Leveraging technology to service customers quickly and conveniently.
Developing and implementing superior risk management and investment strategic
to offer sustainable and stable return to our shareholder.
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Providing and enabling environment to foster growth and learning for our
employees
MF, TATA MF and DSP MERRILL LYNCH MF) through their trading account.
Demat Services
ICICI Bank Demat Services boasts of an ever-growing customer base of over 11.5 lacs
account holders. In our continuous endeavor to offer best of the class services to our
customers we offer the following features:
e-Instructions: You can transfer securities 24 hours a day, 7 days a week through Internet
& Interactive Voice Response (IVR) at a lower cost. Now with "Speak to transfer", you
can also transfer or pledge instructions through our customer care officer.
Consolidation Demat Account: Dematerialise your physical shares in various holding
patterns and consolidate all such scattered holdings into your primary demat account at
reduced cost.
Digitally Signed Statement: Receive your account statement and bill by email.
Corporate Benefit Tracking: Track your dividend, interest, bonus through your account
statement.
Mobile Request: Access your demat account by sending SMS to enquire about Holdings,
Transactions, Bill & ISIN details.
Mobile Alerts: Receive SMS alerts for all debits/credits as well as for any request which
cannot be processed.
Dedicated customer care executives specially trained at our call centre, to handle
all your queries.
Countrywide network of over 235 branches, you are never far from an ICICI
Bank Demat Services outlet.
Product and Services
A product for every need: ICICldirect.com is the most comprehensive website, which
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allows investor to invest in Shares, Mutual funds, Derivatives (Futures and Options) and
other financial products. Simply put ICICldirect.com offer investor a product for every
investment need.
Trading in shares:
1. Cash Trading:- This is a delivery based trading system, which is generally done
with the intention of taking delivery of shares or monies. Cash position is meant to
be settled by delivery, the required cash or securities are blocked in full. For
example, if you place an order to buy 100 shares of ICICI, you need to have 100%
of the order value in your available limit/funds. And incase you wish to sell 100
ICICI shares you need to have 100% shares in your demat balance.
2. Margin Trading: You can also do an intra-settlement trading up to 3 to 4 times
your available funds, wherein you take long buy/ short sell positions in stocks
with the intention of squaring off the position within the same day settlement
cycle. When you place an order to buy 100 shares of Reliance in the cash
segment, your intention is to pay for and receive the shares in your Demat
Account. However, if the same order were to be placed in the margin segment,
your intention would be to sell those shares subsequently in the same settlement at
a higher price and thereby make a profit on the same. However, if the price falls
subsequently, there may be a loss.
3. Margin PLUS Trading: Through Margin PLUS you can do an intra-settlement
trading up to 25 times your available funds, wherein you take long buy/ short sell
positions in stocks with the intention of squaring off the position within the same
day settlement cycle. Margin PLUS will give a much higher leverage in your
account against your limits .
Margin PLUS offers an order placement feature through which you can
take a intra-day position in the equity segment and at the same time,
place a cover order for this position specifying the Stop Loss Trigger
Price and the limit price. This cover order will help you to limit the
loss, if any, on the position .
Margin Plus is available for intra day trading in more than 60 stocks on
ICICldirect.com
Helps to limit your loss through a Stop Loss Order
Open Margin Plus positions can be closed any time before the End of
Settlement timings as specified by ICICldirect.com
Auto Square off process to help you close your open positions at the End
of the Day.
How to place a Margin Plus order?
Allocate the funds for trading in Equity segment.
Select the link "Margin Plus order" on the trading page.
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Select the Buy/Sell option and the Stock for trading. (orders can be
placed only during market hours)
The first Buy/Sell order can only be a market order.
At the time of placing this order, also select a cover Stop loss trigger
order.
E.g. You Buy 100 shares of INFTEC at 3400, anticipating that the price would rise. At
the same time, you will be required to place a cover stop loss order. Say you decide your
stop loss price at 3330. You will then be required to state the limit price at say 5% lower
level i.e. Sell 1 00 INFTEC at 3230 limit price and 3330 Stop Loss Trigger Price.
Hence if your view goes wrong and the price of INFTEC moves down, your Stop Loss
order will be triggered at 3330 and will get executed at the best available price between
3330 and 3230.
If your position is favorable, and INFTEC moves up to 3500, you can modify the Stop
Loss order to a market order and close your position.
4. Spot Trading: -This facility can be used only for selling your demat stocks which are
already existing in your demat account. When you are looking at an immediate liquidity
option, 'Cash on Spot' may work the best for you, On selling shares through "cash on
spot", money is credited to your bank a/c the same evening & not on the exchange
payout date. This money can then be withdrawn from any of the ICICI Bank ATMs.
Currently offer S&P CNX NIFTY and CNX NIFTY JUNIOR scripts are available
in 'Cash on Spot'. The maximum limit of 'Cash on Spot' trades that you can enter
into on a daily basis is Rs 10, 00000.
5.BTST (BUY TODAY SELL TOMORROW): -Buy Today Sell Tomorrow (BTST) is a
facility that allows you to sell shares even on 1 5t and 2nd day after the buy order date,
without you having to wait for the receipt of shares into your demat account.
BTST is relevant for Investor when: 1. If you have you ever missed making a huge profit because you had bought the
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shares just one day back and you could not sell them as they were not credited
to your demat account?
2. If you have ever found that squaring off your cash based transactions within a
day is not profitable, as one days time does not allow realizing maximum
profit?
3. If you have ever thought of an intermediate option between cash and Margin
trades where in you could make profits on volatile shares within one or 2 days
of your buying them without a compulsory square off?
4. If you have ever faced any of the above situations, BTST is for you.
6. CallNTrade: Call Trade allows you to call on a local number in your city & trade
on the telephone through our Customer Service Executives. This facility is currently
available in over 11 major states across India.
7. Trading on NSE/BSE: Through ICICI direct. com, you can trade on NSE as well as
BSE.
8. Market Order: You could trade by placing market orders during market hours that
allows you to trade at the best obtainable price in the market at the time of execution of
the order.
9. Limit Order: Allows you to place a buy/sell order at a price defined by you. The
execution can happen at a price more favorable than the price, which is defined by you,
limit orders can be placed by you during holidays & non-market hours too.
TRADE IN DERIVATIVES:
FUTURES
1. Through ICICI direct.com, you can now trade in index and stock futures on the
NSE. In futures trading, you take buy/sell positions in index or stock(s)
contracts having a longer contract period of up to 3 months.
2. Trading in FUTURES is simple! If, during the course of the contract life, the price
moves in your favor (i.e. rises in case you have a buy position or falls in case you
have a sell position), you make a profit.
3. Presently only selected stocks, which meet the criteria on liquidity and
volume, have been enabled for futures trading.
OPTIONS
1. An option is a contract, which gives the buyer the right to buy or sell shares at a
specific price, on or before a specific date. For this, the buyer has to pay to the
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seller some money, which is called premium. There is no obligation on the buyer
to complete the transaction if the price is not favorable to him.
2. To take the buy/sell position on index/stock options, you have to place certain %
of order value as margin. With options trading, you can leverage on your trading
limit by taking buy/sell positions much more than what you could have taken in
cash segment.
3. The Buyer of a Call Option has the Right but not the Obligation to Purchase the
Underlying Asset at the specified strike price by paying a premium whereas the
Seller of the Call has the obligation of selling the Underlying Asset at the
specified Strike price.
4. The Buyer of a Put Option has the Right but not the Obligation to Sell the
Underlying Asset at the specified strike price by paying a premium whereas the
Seller of the Put has the obligation of Buying the Underlying Asset at the
specified Strike price.
By paying lesser amount of premium, you can create positions under OPTIONS and take
advantage of more trading opportunities
Investing in Mutual funds:
ICICldirect.com brings you the same convenience while investing in Mutual funds also Hassle free and Paperless Investing.
With the inclusion of Fidelity MF, you can now invest on-line in 19 mutual Funds
through ICICI direct.com. Prudential ICICI MF, JM MF, Alliance MF, Franklin
Templeton MF, Sundaram MF, Birla Sun Life MF, HDFC MF, Principal MF, UTI MF,
Reliance MF, Kotak MF, Tata MF, DSP Merrill Lynch MF, ING MF, CHOLA MF,
Deutsche MF, HSBC MF and Standard Chartered MF are the Mutual Funds available for
investment.
You can invest in mutual funds without the hassles of filling application forms or any
other paperwork. You need no signatures or proof of identity for investing.
Once you place a request for investing in a particular fund, there are no manual processes
involved. Your bank funds are automatically debited or credited while simultaneously
crediting or debiting your unit holdings.
You also get control over your investments with online order confirmations and order
status tracking. Get to know the performance of your investments through online
updation of MF portfolio with current NA V.
ICICldirect.com offers you various options while investing in Mutual Funds:
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Purchase: You may invest/purchase Prudential ICICI MF, JM MF, Alliance MF,
Franklin Templeton MF, Sundaram MF, Birla Sun Life MF, HDFC MF, Principal MF,
UTI MF, Standard Chartered MF, Reliance MF, Kotak MF, Tata MF, DSP Merrill lynch
MF, ING MF, CHOLA MF, Deutsche MF, HSBC MF and Fidelity MF without the
hassles of filling application forms.
Redemption: In addition to giving hassle-free paperless redemption, ICICldirect.com
offers faster liquidity. You can redeem the mutual fund units through ICICI
direct.com. The money will be credited to your bank account automatically 3 days
after the order placement date.
Switch: To suit your changing needs you may wish to shift monies between
different schemes. You can switch your monies online from one scheme to another
in the same fund family without any hassles.
Systematic Investment plans (SIP): SIP allows you to invest a certain sum of
money over a period of time periodically. Just fill in the investment amount, the
period of investment and the frequency of investing and submit. ICICIdirect.com will
do the rest for you automatically investing periodically for you.
Systematic withdrawal plan: This allows you to withdraw a certain sum of money
over a period of time periodically.
Transfer-in: You can convert your existing Mutual funds into electronic mode through a
transfer-in request.
IPOs and Bonds Online:
You could also invest in Initial Public Offers (IPOs) and Bonds online without going
through the hassles of filling ANY application form! paperwork.
Get in-depth analyses of new IPOs issues (Initial Public Offerings), which are about to hit
the market and analysis on these. IPO calendar, recent IPO listings, prospectus/offer
documents, and IPO analysis are few of the features, which help you, keep on top of the
IPO markets.
Schemes offered for opening Demate account
ICICI direct.com allows 3 in I account scheme for opening Demate account. In which
3 types of account will be opened.
1. Demate account
2. Trading account
3. Savings account in ICICI bank
In Surat Demate account will be opened in Athwelines branch and savings account
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we can open in following any I branch and savings account will be opened at 0
balance.
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SCHEME SCHEME
CODE
NAME
S-l
Sl3
~
S6I
Sl7
Sl7A
S17B
S18
S22
Any kind
of general
customer
Existing
alc holder
in ICICI
bank
ICICI
group
employees
ICICI has
tie up with
some A,
A+
companIes
ICICI has
tie up with
some A,
A+
compames
ICICI has
tie up with
some A,
A+
compames
Offline
Demate
alc with
ICICI
bank
The client
have a
product of
ICICI
group
AlC
TYPE OF
OPENING AlC
CHARGES
750
3 in 1
BTST
SCHEME
NOTES
Yes
2YRS
AMC
FREE
No
750
3 in 1
Yes
No
500
3 in 1
Yes
No
3 in 1
Yes
No
1 or 250
3 in 1
Yes
No
250 or 450
3 in 1
Yes
No
1 or 750
3 in 1
Yes
No
3 in 1
Yes
No
Products
like: -life
Insurance
,
mutual
fund,
home
loans,
general
Insurance
credit
card, gold
coin of 5
gm
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Documents needed
icicidirect.com
for
opening
Demate
account
with
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Total eligible
turnover
Brokerage (% of
transaction value)
Brokerage (for
squared off order)
Above 5 crores
2 crores to 5 crores
1 crores to 2 crores
50 lakhs to 1 crores
25 lakhs to 50 lakhs
10 lakhs to 25 lakhs
Less than 10 lakhs
0.25%
0.30%
0.35%
0.45%
0.55%
0.70%
0.75
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Effective
(for squared off
order)
0.125%
0.15%
0.175%
0.225%
0.275%
0.35%
0.375%
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Margin and
0.03%
0.035%
0.04%
0.05%
margin
3.Cash on spot: - 1%
4. Futures and options: -
Total eligible
turnover
Above 20 crores
10 crores to 20
crores
5 crores to 10 crores
Less than 5 crores
Futures
Brokerage
(%of
transaction
value)
Effective
brokerage
(for squared
off order)
Total eligible
turnover
Options
Brokerage
(rupees)
0.03%
0.035
0.015%
0.0175
Above 20 lakhs
10 lakhs to 20 lakhs
65
70
Effect
tive
broke
age
(for
squar
doff
order)
rupee
32.5
35
0.04
0.05
0.02
0.025
5 lakhs to 10 lakhs
2 lakhs to 5 lakhs
75
85
37.5
42.5
95
47.5
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making it the most significant private equity investor in the country. The investment
experience of ICICI Ventures professionals is the foundation its strengths and success in
several areas of investing. ICICI Venture seeks to invest in opportunities where its
network through ICICI and TCW can create value for all involved. ICICI Ventures
primary investment objective is capital investment through investments by way of equity
or equity-related securities in unlisted companies with significant growth potential. ICICI
Ventures investments span a broad spectrum of industries and stages of development, the
investment focus being on
Information Technology
Biotechnology and Life Sciences
Media and entertainment
Retail Services
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ICICI INFOTECH
ICICI InfoTech is a leading provider of end-to-end IT solutions. We have an in-depth
experience of having worked on varied technologies with leading corporations
worldwide. Our service portfolio includes the following:
IS & IT Consulting
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RBI Bonds
E-invest (ICICI Direct.com)
Fixed Deposits
Mutual Funds
Bonds
Demat
Equity IPO
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Net Profit Ratio (PAT/Sales) 14.49 9.49 Net Profit Ratio (PAT/Net worth) 22.21 18.13
Current Ratio (Current Assets/Current Liabilities) 1.67:1 2.55:1 Debt - Equity Ratio
0.47:1 0.04:1 Debtors Turnover (Debtors/Gross Sales) 1.18 Months 1.25 Months
Creditors Turnover (Creditors/Purchases)1.86 Months 1.59 Months Dividend Pay-out
Ratio 17 15.37
. 3.3 SWOT ANALYSIS OF THE COMPANY:
Strengths
1. Management philosophy and commitment to maximize shareholders returns
2. Upgraded product design and development facilities to develop new products and aid
diversification
3. Ongoing activities to support up gradation of operational performance and rise in
productivity
4. Team of talented and committed professionals available to improve companies
performance Weakness
1. Competition from cheap imports
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Opportunities
1. UFSL has initiated development of products for diesel application. This will provide
tremendous scope for diversification and growth
2. Acquisition of AMTEC to provide opportunities to access global OEMs
3. Opportunity to support AMTECs operations by supplying products from India
4. The introduction of new emission norms will provide UFSL opportunity to develop
injection systems and thereby upgrade the status of the company from product to system
supplier.
Threats, Risks & Concerns
1. Constant pressure to be cost competitive to meet customer expectations
2. Relentless pressure to maintain profitability due to rising input/raw material prices
3. Increasing popularity of alternative fuel vehicles, such as Hybrid, Hydrogen powered,
CNG and LPG vehicles poses new challenges for the company
.
3.4 FUTURE PROSPECTS AND PLANS OF THE ORGANIZATION
For ICICI the past half has been a trying period more so because of the adverse
environmental conditions such as the depressed equity markets and the volatile currency
markets. However, its retail thrust and a perceptible shift in financing from
manufacturing projects to corporate finance will put it in good stead for the quarters to
come. Its growing importance in the telecom and infrastructural sectors, which have huge
potential, will be a key driver of growth for the future
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Mr.S.Mukherji,chairman
Nitin Jain,Managining irectore & CEO
Ms.Vishakha Mulye
Mr.A.Murugappam
Mr.Subir Saha
Mr.Uday Chitale
Mr.Subir Saha
Mr.A.Murugappan
Mr.Anup Bagchi
HEAD OFFICE
TYPE OF BUSINESS
:LIMITED COMPANY
PHONE NO
FAX NO
WEB SITE
: www.icicisecurities.com
www.icicidirect.com
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Depository Services
Derivatives
ICICI securities ltd named its online division as ICICI direct.com and it is into retail
Broking
The business of the company overhauled 6 years ago in 2002.
Largest chain of Total centers office 356, Region office 23, Total hub office 46, 150
education workshop, and offices in 860 cities all across India.
Leading player today with
It offers its customers with the trade execution facilities on the NSE and BSE, for
cash as well as derivatives, cash, margin trading, margin plus, BTST (buy today sell
tomorrow), cash on spot, IPOs, mutual funds, Gal bonds, postal services, insurance of
icici group (icici prudential life insurance and icici Lombard general insurance).
ICICldirect.com is a India's first largest B2C Ecommerce site.
Safest transaction capabilities varisign (secured stock layer with 128-bit enruption.
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1. ICICI direct.com is awarded the " Most Preferred Brand in Financial Advisory
Services" in the CNBC awaaz consumer Award 2007. The Nielsen Company
conducts this survey -worlds foremost market research firm conducted study covering
more than 10000 consumers across 42 segments in 21 cities and 13 small towns in 14
states across India.
2. IBA (INDIAN BANK ASSOCIATION) business technology awards 2006 for
improved customer experience and to gain competitive advantage are recognized for
awards.
3. IBA (INDIAN BANK ASSOCIATION) business technology awards 2007 for best
online trading platform provide
4. Fast web genius of the web awards 2007 for online trading.
5. Out Look Money NDTV Profit award 2007 for Best ebrokerage.
6. TXAI- highest broker ranking by CRISIL- ability to ICICI direct to servIces capital
market broking transactions is highest.
7. Awarded Asia's first web seal by KPMG a seal of assurance awarded to companies in
the Internet world with control conscious business operations.
8. ICICI direct has the largest number of customers- SEBI
9. ICICI direct's transparency, ease of trading and technology initiatives has made in the
leader in Indian online trading market- capital market.
10. " The Largest Online broker by customer trades and market share - BUSINESS
INDIA.
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Product Variety
ICICI securities limited offer 3 in 1 online trading accounts for its customers specially
designed according to their volume in share trading. Those 3 varieties are:
Trading account
Demate account
Savings account
Quality
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../ PRICE
+:+ List Price
Online opening charges: - 750 Rs.
Annual maintenance charges: - 500 Rs. Per annum .
./ PROMOTION
Online share trading is totally a new concept in Indian Market. Generally investor doesn't
like to come out from conventional way of share trading. ICICI securities limited have
introduced this product in India. The concept and Product are still new in the market.
Therefore the company has undertaken extensive promotion campaign to create
awareness about the product. ICICI securities limited adopt the following tools for
promoting the product.
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+:+ Advertising
Company advertises its product through TV media on channels like CNBC, Print Mediain leading dailies and outdoors media. It advertises itself as an innovative Brand for
online trading. Besides attractive and colorful brochures as well as posters are used
giving full details about the product. Mails are sent to people logging on to sites like
moneycontro1.com and rediff.com.Also; stalls are opened up now and then at places
where prospective customers can be approached.
+:+ Sales Promotion
The Company offers account opening charge Rs.1 instead of Rs.750 for corporate
accounts (more than 20 accounts) for companies like Essar, Reliance, and Kribhco, ongc
etc.
+:+ Sales Force
The Company has an aggressive sales force, which is given incentives, based on their
sales. The sales force is given intensive training continuously to their agents every week
on Tuesday.
+:+ Seminar
The Company also arranges seminar in corporate world for creating awareness about the
product. Recently, it had organized for a seminar in Ongc, Reliance, Kribhco, Pantaloon,
Bigbazar, and GEB etc.
.:. Direct Marketing
Company emphasizes more on direct marketing, as many people are still not aware of
this new way of smart trading. For this, the company recruits and trains sales
representatives so as to explain the product and solve customer queries related to the
product. This is the most effective way to communicate the three-in-one concept which
company offers .
:. Telemarketing
This is another promotional tool company is using to boost up its sales. For this, the
company collects the database of the people belonging to different professional segments
.
./ PLACE
.:. Channels
ICICI securities limited uses various channel alternatives to reach to its customers
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through
~ Internet
~ T ele Marketing
~ Retail Share Shops
~ Franchisee Owners
~ Power Brokers
~ Sales Force
.:. Coverage
Access to the website from any part of the globe .
:. Locations
ICICI securities limited have the largest chain of retail share shops in India. It has centers
office 356, Region office 23, Total hub office 46, 150 education workshop, and offices in
860 cities located in all over India like Pune, Thane, Chennai, Kolkatta, Bangalore,
Luckhnow, Darjleeng, Kanpur, Baroda, Midnapore, Surat, Delhi, Gaziabad, Hydrabad,
Allahbad, etc
./ PEOPLE
.:. Employees
~ Selection: Employees are selected on the basis of their experience and
qualification as applicable to the job.
~ Training: Intensive training is provided to the employees till a week
once they join and even at times required after that.
~ Motivation: The employees are motivated through incentives they are
provided .
:. Research Team
ICICI securities limited has a team of dedicated analysts who have years of working
experience in the industries that they track, and a proven track record in using their
knowledge of the investment science to deliver results .
:. Customers
The heart ofICICI securities limited is really treated loyally like the kings. The customer
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care, which comprises of highly trained executives operating from 9:30 to 8:00 p.m .
../ PHYSICAL EVIDENCE
.:. Locality of the office:
In Surat, three franchise outlets are located in posh areas like Athwagate, Ring road, and
Cinema road. And more offices are opened soon .
:. Office Environment:
The ambience within the office is what can make the customer feel comfortable in
trading. The cordial and friendly atmosphere at office is like a full time motivation for the
employees
./ PROCESS
.:. In this service organization, the ways in which the customers receive delivery of the
service constitutes the process. Here, the process involves adding 'value' or 'utility' so
that the customers get full satisfaction for the money spent by them .
:. Here the process begins from the step when customer wants to open online trading
account and ends when his account is actually activated .
:. All Indian residents and NRI are eligible to avail this service .
:. Customers can open online trading account by filling a single application form.
Our Fixed Income team for the last two years (CY 2004 and 2005) has been adjudged the
Best Bond House in India by both Asiamoney and Finance Asia. The equities team was
adjudged the Best Indian Brokerage House-2003 by Asiamoney. The Corporate Finance
team, according to Bloomberg topped the M&A league tables in 2003.
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PROBLEM ANLYSIS:
4.1 STATEMENT OF THE PROBLEM
Online trading and Demat are the two emerging concepts in the stock market.
It involves personal factors, technical factors, business factors and economic factors. The
interplay of these factors on stock market requires a deep study about the pattern process
and procedures and performance. This study is intended to identify the various concepts
about demat and the online trading and its way of functioning
ICICI provisions are not exposing to its customers extensively. Hence in this report an
attempt has been made to link the potential customers and the ICICI Direct .Com
4.2 OBJECTIVES OF THE STUDY
Every company has a particular goal. A study without objectives can not reach the
destination. My project work programme was also directed to some particular targets
and the main objective of the study are as bellow;
Study of ICICI Direct.com (online share trading)
Study of dematerialization in ICICI Capital Ltd.
Customers satisfaction and awareness of ICICI Capital Services Ltd.
4.3 SCOPE OF THE STUDY:
Globalization of the financial market has led to a manifold increase in investment. New
markets have been opened; new instruments have been developed; and new services have
been launched. Besides, a number of opportunities and challenges have also been thrown
open.
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SAMPLING PLAN:
Sampling since segment wise investors in ICICI Capital Ltd. are not available for the
overall customers was considered for the study. 100% coverage was difficult within
the limited period of time. Hence sampling survey method was adopted for the
purpose of the study.
Population: (universe) customers of ICICI Capital services Ltd.
Sampling size: A sample of hundred was chosen for the purpose of the study. Sample
considers of small investor, large investors and traders of ICICI Capital Ltd.
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Sampling procedure: From large number of customers of ICICI Ltd. were randomly
picked up.
Field Study: directly approached respondents.
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Table No. 5.1 Customers preference over other depository services in ICICI
Direct.com
Attributes
No. of Persons
Percentage
Quality Service
50
50
Safety
20
20
Reach
12
12
Nothing in Particular
14
14
Chart No. 5.1 Percentage of customers preference over other depository services in
ICICI Direct.com.
From the above showing statistics it is observed that in the survey 50% customers justify
that ICICI capital Ltd. providing quality services as compare to other depository services
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Small Investors
58
Traders
10
The above table shows that out of 100 customers, 58 customers are small investors and
32 customers are long term investors.
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Schemes/Services
No of Persons
Percentage
ICICI Direct.com
32
32
Settlement
Transmission of Securities
23
23
Mutual funds
31
31
New Services
Chart No. 5.3 Percentage of availed of the services in. ICICI Direct.com
Table No. 5.4 Number of customers aware of services offered by ICICI Capital Ltd.
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Schemes/Services
No of Persons
Percentage
ICICIDirect.com
100
100
Settlement
70
70
Transmission of Securities
64
64
56
56
Mutual Fund
18
36
24
48
New Services
Chart No. 5.4 Percentage of customers aware of services offered by ICICI Capital
Ltd.
Table No. 5.5 Customers awareness of the new services offered by ICICI Direct.com
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Through
ICICI
Direct.Com
News Paper/
Broker
Magazines
Agents
Others
50
10
32
50%
10%
8%
32%
Chart No. 5.5 Percentage of customers awareness of the new services offered by
ICICI Direct.com
According to the survey 50% customers know the services through ICICI and 32%
through ICICI agent
Through
ICICI
Direct.Com
News paper
Magazines
34
34%
Broker
Agents
Others
12
14
34
12%
14%
34%
6%
According to the survey the first source of information is ICICI Direct.Com itself and the
agents.
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Satisfied
Mostly
Satisfied
Neither
Satisfied
Unsatisfied
64
24
64%
24%
Mostly
Unsatisfied
Unsatisfied
10
10%
2%
According to survey 64% of customers are satisfied with the services of ICICI Direct
.com and 24% are mostly satisfied. Then we can say that ICICI Direct.Com offers quality
service that touches customers satisfaction level.
Satisfied
Mostly
Satisfied
Neither
Satisfied
Unsatisfied
46
22
16
/ Unsatisfied
12
Direct.Com
Mostly
Unsatisfied
4
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46%
22%
16%
12%
4%
Chart No. 5.8 Percentage of customers satisfaction of the Demat services of ICICI
Direct.Com
According to the survey 46% are satisfied with the Demat Services of the ICICI Capital
Ltd. 12% of the customers are not satisfied. So we can say ICICI Direct.Com offers
quality services in Demat section also.
Table No. 5.9 Customers satisfaction with the purchase and sales of ICICI
Direct.Com
Satisfied
Mostly
Satisfied
Neither
Satisfied/
Unsatisfied
Mostly
Unsatisfied
Unsatisfied
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40
26
14
12
40%
26%
14%
8%
12%
Chart No. 5.9 Percentage of customers satisfaction with the purchase and sales of
ICICI Direct.Com
According to the survey only 40% of the customers are satisfied with Purchase and Sales
of ICICI Direct.Com. So we can say purchase and sales section ICICI Direct.Com
unsatisfied the customers.
Table No. 5.10 Customers satisfaction with the transmission of securities of ICICI
Direct.Com
Satisfied
Mostly
Satisfied
Neither
Satisfied/
Unsatisfied
Mostly
Unsatisfied
Unsatisfied
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30
22
32
12
30%
22%
32%
12%
4%
According to the survey 30% of the customers are satisfied and 22% of the customers are
mostly satisfied with the transmission of securities of ICICI Direct.Com. So we can say
that ICICI Direct.Com unsatisfied the customers in case of transmission of securities of
the customers.
Table No. 5.11 Customers satisfaction with the sell of their securities in cash
Satisfied
Mostly
Satisfied
Neither
Satisfied/
Unsatisfied
Mostly
Unsatisfied
Unsatisfied
70
20
10
70%
20%
10%
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Chart No. 5.11 Percentage of customers satisfaction with the sell of their securities
in cash
According to the survey 70% of the customers are satisfied with the sell in cash system of
ICICI Capital Ltd. So we can say that ICICI Direct.Com satisfied the customers with the
sell of customers securities in cash.
Table No. 5.12 Customers satisfaction with the mutual fund service of ICICI
Capital Ltd.
Satisfied
Mostly
Satisfied
Neither
Satisfied/
Unsatisfied
Mostly
Unsatisfied
Unsatisfied
38
34
24
0
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38%
34%
24%
4%
Chart No. 5.12 Percentage of customers satisfaction with the mutual fund service of
ICICI Capital Ltd.
According to the survey, 38% of the customers are satisfied with the Mutual fund
services of ICICI Capital Ltd. So we can say that customers tendency is that they believe
that Mutual Fund and Shares are performing as the same in the primary and secondary
market and the mutual fund is the safest way to invest in the market.
Table No. 5.13 Customers satisfaction with the trading demos provided by the
ICICI Capital Ltd.
Satisfied
Mostly
Satisfied
Neither
Satisfied/
Unsatisfied
Mostly
Unsatisfied
Unsatisfied
52
24
20
52%
24%
20%
4%
Chart No. 5.13 Percentage of customers satisfaction with the trading demos
provided by the ICICI Capital Ltd.
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According to the survey 52% of the customers are satisfied with the Trading Demos that
are conducted by the ICICI Capital Ltd. 24% are mostly satisfied. So we can say that
ICICI customers are attending the demo programmes and the ICICI employees can able
to solve the queries of the customers.
Table No. 5.14 Customers satisfaction with the periodic receipts and holding
statements of ICICI Direct.Com
Satisfied
Mostly
Satisfied
Neither
Satisfied/
Unsatisfied
Mostly
Unsatisfied
Unsatisfied
20
18
16
32
14
20%
18%
16%
32%
14%
Chart No. 4.14 Percentage of customers satisfaction with the periodic receipts and
holding statements of ICICI Direct.Com
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According to the survey, the 20% customers are satisfied and 18% customers are mostly
satisfied with the periodic receipts and holding statements of the ICICI Direct.Com. So,
we can say that most of the customers are unsatisfied with this service of ICICI
Direct.Com.
Table No. 5.15 Customers satisfaction with the telephonic enquiries of ICICI
Capital Ltd.
Satisfied
Mostly
Satisfied
Neither
Satisfied/
Unsatisfied
Mostly
Unsatisfied
Unsatisfied
16
48
12
14
10
16%
48%
12%
14%
10%
Chart No. 5.15 Percentage of customers satisfaction with the telephonic enquiries of
ICICI Capital Ltd.
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According to the survey, 48% of the customers are mostly satisfied and 16% of the
customers are satisfied. So, we can say that most of the customers are satisfied with the
telephonic service of ICICI Capital Ltd.
Table No. 5.16 Customers satisfaction with the co-operation by the staff of ICICI
Capital Ltd.
Satisfied
Mostly
Satisfied
Neither
Satisfied/
Unsatisfied
Mostly
Unsatisfied
Unsatisfied
32
46
14
32%
46%
4%
14%
4%
Chart No. 5.16 Percentage of customers satisfaction with the co-operation by the
staff of ICICI Capital Ltd.
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According to the survey, 32% of the customers are satisfied and 46% of the customers are
mostly satisfied with the co-operation by the staff of ICICI Capital Ltd. So, we can say
that most of the customers are satisfied with the co-operation by the staff of ICICI Capital
Ltd.
Table No. 5.17 Customers satisfaction with the tariff structure of ICICI Direct.Com
Very High
High
Reasonable
Low
Very Low
12
14
72
12%
14%
72%
2%
Chart No. 5.17 Percentage of customers satisfaction with the tariff structure of
ICICI Direct.Com
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Table No. 5.18 Customers satisfaction when dealing with the problems through
ICICI Direct.Com
Schemes / Services
Frequent reminders are given to
ICICI Direct.com for update the
information
Irregular receipt of Holding /
Transaction statements
Improper format of Holding /
Transaction statements
Improper attention given to the
enquiries
No of Persons
Percentage
24
24%
22
22%
16
16%
14
14%
Billing problem
10
10%
Inadequate information
14
14%
According to the survey, 12 persons are not satisfied with the frequent reminders which
are given to the ICICI Direct.Com for update the information, 11 persons are not satisfied
with the irregular receipt of holding or transaction statement, 8 persons are not satisfied
with the format of holding or transaction statements, 7 persons are not satisfied attention
given to the enquiries, 5 persons are not satisfied with the billing system and 7 persons
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are not satisfied with the information provided by the ICICI Direct.Com. So, we can say
that these systems should be changed or modified by the ICICI Direct.com.
18
28
0%
20%
40%
60%
80%
100%
36%
56%
8%
Chart No. 5.18 Percentage of customers rating of the services of ICICI Direct.Com
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According to the survey 56% of the customers said that ICICI Direct.Com services are
providing only 60% of its services to its customers. So we can say that ICICI Direct.Com
services should be increased to please its customers.
Table No. 5.20 Customers preference for ICICI Direct.Com over its competitors
Quality
Service
Rates charged
Nothing
Particular
52
10
52%
10%
in
Safety
Reach
24
24%
8%
6%
Chart No. 5.19 Percentage of customers preference for ICICI Direct.Com over its
competitors
According to the survey 52% of customers justify their preferences for ICICI Direct.com
for quality services, 10% for rates charged and 8% for safety. So, we can say that ICICI
Direct.Com provides quality services than its competitors. But in case of rate charges and
safety ICICI Direct.Com is behind its competitors.
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Table no. 5.20 Customers awareness of the products of ICICI Capital Ltd.
Products
Tick
ICICI Bonds
100
100
ICICIDirect.com
90
90
Mutual Fund
78
78
Equity IPO
74
74
Fixed Deposit
88
88
RBI Bonds
82
82
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According to the survey most of the people know all the products of ICICI Capital
Services Ltd. Only the customers do not know few products. 100% awareness is feasible
in case of ICICI Bonds and 90% in case of ICICI Direct.com.
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The ICICI official should conduct regular training demo classes for the new account
holders.
6.3 CONCLUSION
Icici direct.com is performing very well in the field of online share trading
business and having very good administration also.
Each departments doing their job very well comparing to the standard
performance fixed by the management and it leads to overall good performance of
the company.
There existing a good relationship between employees and management
The management taking keen interest for finding their weakness and try their
level best to overcome this weakness
BIBLIOGRAPHY
QUESTIONNAIRE
Name:-
E mail:.
1) How do you justify your preference for ICICI Capital Ltd. over other
Depository Services?
o Quality Service
o Reach
o Safety
o Vast variety of Service
o Nothing in Particular
o Small Investors
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o Traders
3) In which scheme are you holding your shares in ICICI Direct.com.?
o ICICIDirect.com
o Settlement
o Transmission of Securities
o Mutual funds
o Settlement
o Sell 'N' Cash
o Loans Against de-mat shares
5) If you are aware of the new services offered by ICICI Direct.Com then how
did they come to know about it?
o Through ICICI Direct.Com
o Broker
o Agents
o Others
6) If you are not aware of the new services then who / what do you think should
be the first source of information?
o Through ICICI Direct.Com
o Broker
o Agents
o Others
7) Are you satisfied with the services of ICICI Direct.Com?
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o Satisfied
o Mostly Satisfied
o Mostly Unsatisfied
o Unsatisfied
8) Are you satisfied with the Demat services of ICICI Direct.Com?
o Satisfied
o Mostly Satisfied
o Mostly Unsatisfied
o Unsatisfied
9) Are you satisfied with the purchase and sales of ICICI Direct.Com?
o Satisfied
o Mostly Satisfied
o Mostly Unsatisfied
o Unsatisfied
10) Are you satisfied with the transmission of securities of ICICI Direct.Com?
o Satisfied
o Mostly Satisfied
o Mostly Unsatisfied
o Unsatisfied
11) Are the customers satisfied with the sell their securities in cash?
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o Satisfied
o Mostly Satisfied
o Mostly Unsatisfied
o Unsatisfied
12) Are the customers satisfied with the Mutual Fund service of. ICICI
Direct.com?
o Satisfied
o Mostly Satisfied
o Mostly Unsatisfied
o Unsatisfied
13) Are you satisfied with the trading demos provided by ICICI Direct.com.?
o Satisfied
o Mostly Satisfied
o Mostly Unsatisfied
o Unsatisfied
14) Are you satisfied with the periodic receipts and holding statements of ICICI
Direct.Com?
o Satisfied
o Mostly Satisfied
o Mostly Unsatisfied
o Unsatisfied
15) Are the customers satisfied with the telephonic enquiries of ICICI
Direct.com?
o Satisfied
o Mostly Satisfied
o Mostly Unsatisfied
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o Unsatisfied
16) Are the customers satisfied with the co-operation by the staff of ICICI
Direct.com.?
o Satisfied
o Mostly Satisfied
o Mostly Unsatisfied
o Unsatisfied
17) Are the customers are satisfied with the tariff structure of ICICI
Direct.Com?
o Very High
o High
o Reasonable
o Low
o Very Low
18) Overall how the customers rate the services of ICICI Direct.Com?
o 0%
o 20 %
o 40 %
o 60 %
o 80 %
o 100 %
19) How do the customers justify their preference for ICICIDirect.com over its
competitors?
o Quality Service
o Rates charged
o Nothing in Particular
o Safety
o Safety
20) Are the customers aware of the following products of ICICI Direct.com.?
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o ICICI Bonds
o ICICIDirect.com
o Mutual Fund
o Equity IPO
o Fixed Deposit
o RBI Bonds
21) Have the customers faced any problem while dealing through ICICI
Direct.Com or customers are unsatisfied with the below mentioned schemes /
services?
o Frequent reminders are given to ICICI Direct.com for update the
information
o Irregular receipt of Holding / Transaction statements
o Improper format of Holding / Transaction statements
o Improper attention given to the enquiries
o Billing problem
o Inadequate information
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