mba is a professional course wherein for a student to posses only theoretical knowledge alone is not...

8/7/2019 MBA is a Professional Course Wherein for a Student to Posses Only Theoretical Knowledge Alone is Not Enough but

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INTRODUCTION

1.1 GENERAL INTRODUCTION

PHYSICAL CERTIFICATES - THE TRADITIONAL WAY

The Indian capital market has seen an unprecedented boom in its

activity in the lastdecade. We can now boast of a very large investor

population and substantial volumes oftrade. However, this surge in

activity has brought with it, numerous problems thatthreaten the very

survival of the Capital market in the long run. A closer inspection of

theproblems would reveal that most of them arise due to the intrinsic

nature of paper basedtrading and settlement.

This century-old system of trading and settlement requires handling of

huge volumes ofpaper leading to increased costs and inefficiencies.

Simultaneously, they expose theinvestors to greater risks putting them

at a disadvantage. Some of these areas are:

Unwarranted delay in transfer of shares. It takes 30 to 60 days for the

investors to get

the shares lodged in their name;

Possibility of forgery on various documents leading to bad

deliveries, legal disputes

etc;

Theft of shares leading to defective title in shares purchased and

subsequent

litigation;


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Prevalence of fake certificates in the market;

Mutilation or loss of share certificates in transit;

Increased transaction costs due to stamp duty, fake shares, rejectio n

by registrars, etc.

This has made the investors, both retail and institutional, wary of

entering the Indiancapital market. In this scenario, it was felt that the

getting up of a depository and theintroduction of scrip less trading and

settlement is imperative for the efficient functioningof the market.

The Indian capital market has witnessed numerous changes in the

recent

past. Historically stock market booms have always resulted in a number

of problems for

the lay investor. Sometimes, the problem may magnify them and

threatens to engulf theentire capital market. A close introspection of

these problems will reveal that most ofthem are due to intrinsic nature

of paper based trading and settlement. All this ma y havedriven 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).


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Yet even with demat, from the point of view of investors there

are numerousproblems. Here Wallet Watch introduces you to setting up

of a demat account andintroduction of scrip less trading and settlement.

There are numerous benefits of this scripless trading and settlement,

which Wallet Watch has discussed in detail.

Providing and enabling environment to foster growth and learning for

ouremployees

Companys mission:

To judged by their sales and earnings growth rates than on the absolute

value of theirsales and earnings. Look for companies that consistently

grow faster than there peers.

Investors prefer companies that increase profit margins -- the

percentage of salesthat they keep -- every year. This is accomplished

either by lowering expenses or raisingprices. Look for companies that

consistently find ways to squeeze more profits out ofsales than their

peers.

The financial health of a company is dependent on a combination

of profitability,short-term liquidity and long term liquidity. Companies,

which are profitable, but havepoor short term or long term liquidity

measures, do not survive the troughs of the trade cycle

2.5 Major Player of the Industry

S. S. KantilalIshwarlal Securities Pvt. Ltd. (sharekhan.com ):

Sharekhan, India's leading stockbroker is the retail arm of SSKI, and

offers youdepository services and trade execution facilities for equities,

derivatives andcommodities backed with investment advi ce tempered


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by decades of broking experience.A research and analysis team is

constantly working to track performance and trends.That's why

Sharekhan has the trading products, which are having one of the

highestsuccess rates in the industry. Sharekhan is ha ving 240 share

shops in 110cities; thelargest chain of retail share shops in India is of

Sharekhan.

In future, Sharekhan is planning to enter in Mutual funds, Insurance

sector and bankingsector to expand beyond the market currently

covered by it. And it has started MF(Mutual Funds) on priority basis but

wants to grow in it.

ICICI WEB TRADE LTD. (lCICIdirect.com):

ICICIdirect.com was the first entrant into e-broking.

ICICdirect.com

provides the 3-in-l to the users which ties in their saving bank account

and their Demat account to theirbrokerage account electronically. This

integration ensures that money is transferredto/from their bank account

and the shares are transferred from/to their Demataccountautomatically

without writing any cheques or transfer instructions while carrying

outtheir trades in shares.

ICICldirect.com has the option of trading in shares in cash, margin or

spot segments. Aninvestor can also invest in 14 Mutual Funds

(Prudential ICICI MF, Franklin TempletonIndia MF, Alliance Capital MF,

1M MF, Birla Sun Life MF, Sundaram MF, IL&FS MF,Principal MF, HDFC

MF, Standard Chartered MF, Reliance Capital MF, Kotak


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TRADE IN DERIVATIVES:

FUTURES

1.Through ICICI direct.com, you can now trade in index and stock futures

on theNSE. 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,

theprice moves in your favor (i.e. rises in case you have a buy position

or falls incase 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 aspecific price, on or before a specific date. For this, the buyer

has to pay to theseller some money, which is called premium. There is

no obligation on the buyerto 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

certainof order value as margin. With options trading, you can leverage

on your tradinglimit by taking buy/sell positions much more than what

you could have taken incash segment.

3.The Buyer of a Call Option has the Right but not the Obligation to

Purchase theUnderlying Asset at the specified strike price by paying a

premium whereas theSeller of the Call has the obligation of selling the

Underlying Asset at thespecified Strike price.


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4.The Buyer of a Put Option has the Right but not the Obligation to Sell

theUnderlying Asset at the specified strike price by paying a premium

whereas theSeller of the Put has the obligation of Buying the Underlying

Asset at thespecified 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 Fundsthrough ICICI direct.com. Prudential ICICI MF, JM MF,

Alliance MF, FranklinTempleton 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 forinvestment.

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.


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Once you place a request for investing in a particular fund, there are no

manual processesinvolved. Your bank funds are automatical ly debited

or credited while simultaneouslycrediting or debiting your unit holdings.

You also get control over your investments with online order

confirmations and orderstatus tracking. Get to know the performance of

your investments through onlineupdation of MF portfolio with current

NA V.

ICICldirect.com offers you various options while investing in Mutual

Funds:

Purchase: You may invest/purchase Prudential ICICI MF, JM MF,

Alliance MF,

Franklin Templeton MF, Sundaram MF, Birla Sun Life MF, HDFC MF,

Principal MF,UTI MF, Standard Chartered MF, Reliance MF, Kotak MF,

Tata MF, DSP Merrilllynch MF, ING MF, CHOLA MF, Deutsche MF, HSBC

MF and Fidelity MF withoutthe 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

ICICIdirect.com. The money will be credited to your bank account

automatically 3 daysafter 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.


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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, theperiod of investment and the frequency of investing and

submit. ICICIdirect.com willdo the rest for you automatically investing

periodically for you.

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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 hitthe market and analysis on these. IPO calendar,

recent IPO listings, prospectus/offerdocuments, and IPO analysis are

few of the features, which help you, keep on top of theIPO markets.

Schemes offered for opening Demate account


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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

List A: - Pan card (compulsory)

List B: - bank pass book (nationalized bank only permitted),bank letter in

case of icicibank account holder ,pass port, electricity bill, telephone bill.

List C: - voter id / driving licenece

List D: - mobile bill/ LIC premium receipts

If customer not able to present any kind of documents from list B then

he/she has topresent list C + list D (both of combination)

Following documents attached with Demate account form: -

1. Annexure form

2. Declaration form

3.Scheme form

4. Pan card

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

6.Cheques of 1 Rs or 250or 975 or 125 R

1.Convenience: the 3-in-l accounts integrate your banking, broking and

demat accounts. This enables you to trade in shares without going


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through the hassles of tracking settlement cycles, writing cheques and

Transfer Instructions, chasing your broker for cheques or Transfer

Instructions etc.

2.Speed: You can now get the latest quotes of scripts on

ICICIdirect.com and place an order almost instantly.

3.Control: You can be assured that you have in fact placed an order at

the price you always wanted to, but may not have been able to do so till

now. Thereby giving you control over your own trades.

4.Independence: Instead of transferring monies to a brok er's pool or

towards deposits, you can manage your own demat and bank accounts

when you trade through ICICIdirect.com. Brokerage structure of

ICICIdirect.com The account opening charge s for Idirect account is Rs.

975. ICICIdirect.com provides savings accou nt, trading account, demat

account. In which savings account has zero balance facility. And

company also provides Debit card for annual charges of Rs. 99 per card.

Following are the brokerage structure for different

SERVICE TRANSACTION TAX (STT)


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STT at the rate of 0.125% of the turnover will be charged in addition to

thebrokerage on all delivery trades.


thebrokerage on non- delivery trades.


thebrokerage on sell trades.

2. Low customer base

Opportunities

1. UFSL has initiated development of products for diesel application.

This will provide

tremendous scope for diversification and growth

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

3. Opportunity to support AMTECs operations by supplying products

from India

4. The introduction of new emission norms will provide UFSL

opportunity to developinjection systems and thereby upgrade the st atus

of the company from product to systemsupplier.

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,


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CNG and LPG vehicles poses new challenges for the company

.3.4FUTURE PROSPECTS AND PLANS OF THE ORGANIZATION

For ICICI the past half has been a trying period more so because of the

adverseenvironmental conditions such as the depressed equity markets

and the volatile currencymarkets. However, its retail thrust and a

perceptible shift in financing frommanufacturing projects to corporate

finance will put it in good stead for the quarters tocome. Its growing

importance in the telecom and infrastructural sectors, which have

hugepotential, will be a key driver of growth for the future

SLIBM-AHM

33

BOARD OF DIRECTORS OF ICICI SECURITIES LIMITED

ICICI SECURITIES PRIMARY DEALERSHIP LIMITED

Mr.S.Mukherji,chairman

NitinJain,Managiningirectore& CEO

Ms.VishakhaMulye

Mr.A.Murugappam

Mr.SubirSaha

Mr.UdayChitale

ICICI SECURITIES LIMITED

Mr.K.V. Kmath, Chairman

Mr.S.Mukherji, ManaginigDirectore& CEO

Ms.KalpanaMorparia

Mr.V.Vaidyanathan


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Mr.Nitin Jain

Mr.Paresh Shah

Mr.UdayChitale

ICICI Securities Holdings,Inc.

Mr.Gopakumar P.

Mr.Nitin Jain

Mr.SubirSaha

Mr.A.Murugappan

ICICI Securities INC.

Mr.GopakumarP.,Presiddent

Mr.Nitin Jain

SLIBM-AHM

34

Mr.SubirSaha

Mr.A.Murugappan

Mr.AnupBagchi

What is all about ICICI securities limited?

General Information

Name

:ICICI SECURITIES LIMITED

HEAD OFFICE

:ICICI SECURITIES LTD.

2ndFLOOR,STANROSE HOUSE

APPASAHEB MARATHE MARG


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PRABHADEVI MUMBAI-400025

TYPE OF BUSINESS

:LIMITED COMPANY

PHONE NO

:+91 22 6651 1200

FAX NO

:+91 22 6651 1451

WEB SITE

: www. icicisecurities. co m

www.icicidirect.com

BRAND NAME FOR ONLINE TRADING

RESEARCH DESIGN OF THE STUDY

The study is based on survey technique. The study consists of analysis

about customersawareness and satisfaction of ICICI Capital Ltd. For the

purpose of the studycustomers100 are picked up and their views

solicited on different parameters. The methodologyadopted includes

Questionnaire

Random sample survey of customers

Discussions with the concerned

Personal interviews and informal discussions were held with ICICI

Capital Ltd.customers to ascertain the awareness and satisfaction level.

Further applying simplestatistical techniques has processed the data

collected.

SOURCES OF DATA :


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Primary data: Questionnaire

Secondary data: are published materials such as periodicals,

journals, news papers, and website.

SAMPLING PLAN:

Sampling since segment wise investors in ICICI Capital Ltd. are not

available for the

overall customers was considered for the study. 100% coverage was

difficult withinthe limited period of time. Hence sampling survey method

was adopted for thepurpose of the study.

Population: (universe) customers of ICICI Capital services Ltd.

Sampling size: A sample of hundred was chosen for the purpose of the

study. Sample

considers of small investor, large investors and traders of ICICI Capital

Ltd.

Sampling Methods: Probability sampling requires complete

knowledge about all

sampling units in the universe. Since due to time constraint non -

probability sampling

was chosen for the study.

Sampling procedure: From large number of customers of ICICI Ltd.

were randomly

SLIBM-AHMpicked up.

Field Study: directly approached respondents.

4.4DATA COLLECTION INSTRUMENT

COLLECTION OF DATA THROUGH QUESTIONNAIRES:


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The data collected for the study purpose is through questionnaires.

Hundred customers ofICICIdirect.com have been selected randomly for

the study purpose and then theinformation revealed from the customers

is analyzed and interpreted in the study.

ORGANISATION OF FIELD WORK

Initial field work has done for pre testing tools for data

collection. Thedata is collected through the direct interaction with the

ICICIs customers throughquestionnaires answered by them.hundred

customers of ICICI were randomly chosenfor the purpose of the study in

Surat.

.SLIBM-AHM

4.5 LIMITATION OF STUDY

Since sample size is only 100, which is not a true representative of

the population as a

whole.

Since segment wise investors is not available in ICICI Capital Ltd.

Overall concept is

taken for the study.

Information is partly based on secondary data and hence the

authentic of the study

can be visualized and is measurable.

Level of accuracy of the results of research is restricted to the

accuracy level withwhich the customers have given their answers and

the accuracy level of the answerscannot be predicted.


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ICICIdirect.com customers are more satisfied with the quality

services.

Holding securities in electronic form gives some far-reaching

advantages to the

investors.

ICICIdirect.com offers a wide choice of products for investing in the

stock

market. It allows to invest in shares, mutual funds and other financial

products.With ICICIdirect.com one can manage own de-mat and bank

accounts directlyand independently.

The depository participant will allow an investor to trade through any

broker of

his choice registered with the stock exchanges connected with National

SecuritiesDepository Ltd, what will have to provide the details of

investors account withDepository Participant.

Investor can click to get online information on their open orders and

traders i.e.orders that are routed to exchange are waiting in the queue to

be executed can beviewed for their status.

Transaction details for the traders done in the last month are

available online.

Printed account statements too are available for earlier.

6.2 SUGGESTIONS


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Some customers feel that they are trained for ICICI Direct.Com demo.

Manycustomers feel that batch of 15 are good for ICICI Direct.Com

training.

Survey reveals that most of the customers are not aware of the

service of the MutualFund. ICICI Capital Services Ltd. and the normal

tendency of the customer are bothinvesting in shares and in Mutual

Funds are one and the same. So for this ICICICapital Services Ltd.,

should create an awareness of what exactly mean by MutualFunds and

all other services of ICICI Capital Services Ltd.

After getting the printouts of the holding statement, dispatch of the

same should betaken place with no delay and this can be cross verified

with the sender (dispatchsection).

Customers are facing over crowding, non-availability of telephone lines,

so propermeasures should be taken to overcome these problems.

SLIBM-AHM

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The ICICI official should conduct regular training demo classes for

the new accountholders.

6.3 CONCLUSION

Icici direct.com is performing very well in the field of online share

tradingbusiness and having very good administration also.


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Each departments doing their job very well comparing to the

standardperformance fixed by the management and it leads to overall

good performance ofthe company.

There existing a good relationship between employees and management

The management taking keen interest for finding their weakness and try

their

level best to overcome this weakness

BIBLIOGRAPHY

Books and journals:-

ICICIdirect.com broachers and leaflets

Periodical published by ICICI Capital Ltd.

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Journals published by ICICI Capital Ltd.

Websites:-

www.hinduonnet.com/businessline/iw/2001/05/27/stories/07276053.htm

www.cdslindia.com/FAQ/demat.htm

www.nsdl.co.in/services/demat.php

www.sebi.gov.in/faq/faqdemat.html

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