Analysis of Broking Firm Icici Direct
PREFACE 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.
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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.
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 Sunil K. Patel Date: July-2008 EXECUTIVE SUMMARY INDEX LIST OF TABLE LIST OF FIGUERS Introduction 1. 1 GENERAL INTRODUCTION PHYSICAL CERTIFICATES – THE TRADITIONAL WAY The Indian capital market has seen an unprecedented boom in its activity in the last decade. We can now boast of a very large investor population and substantial volumes of trade.
However, this surge in activity has brought with it, numerous problems that threaten the very survival of the Capital market in the long run. A closer inspection of the problems would reveal that most of them arise due to the intrinsic nature of paper based trading and settlement. This century-old system of trading and settlement requires handling of huge volumes of paper leading to increased costs and inefficiencies. Simultaneously, they expose the investors to greater risks putting them at a disadvantage. Some of these areas are: ? Unwarranted delay in transfer of shares.
It takes 30 to 60 days for the investors to get the shares lodged in their name; ? Possibility of forgery on various documents leading to bad deliveries, legal disputes etc; ? Theft of shares leading to defective title in shares purchased and subsequent litigation; ? Prevalence of fake certificates in the market; ? Mutilation or loss of share certificates in transit; ? Increased transaction costs due to stamp duty, fake shares, rejection by registrars, etc. This has made the investors, both retail and institutional, wary of entering the Indian capital market.
In this scenario, it was felt that the getting up of a depository and the introduction of scrip less trading and settlement is imperative for the efficient functioning of the market. The Indian capital market has witnessed numerous changes in the recent past. Historically stock market booms have always resulted in a number of problems for the lay investor. Sometimes, the problem may magnify them and threatens to engulf the entire capital market. A close introspection of these problems will reveal that most of them are due to intrinsic nature of paper based trading and settlement.
All this may have driven away many potential investors and Foreign Institutional Investors. Dematerialization of shares is looked upon as the remedy for the ‘paper’ based problems. With effect from august 19, 1998 SEBI has granted certificate of registration of Central Depository Services (I) Ltd. (CDSL). Yet even with demat, from the point of view of investors there are numerous problems. Here Wallet Watch introduces you to setting up of a demat account and introduction of scrip less trading and settlement. There are numerous benefits of this scrip less trading and settlement, which Wallet Watch has discussed in detail.
Company profile: 2. 1 INTRODUCTION ABOUT THE 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.
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. ,96,800 crores ($91 billions) actually dematerialised, the concept of dematerialisation can be said to have taken roots. If the regulatory direction is any indication, more paper will be flushed out of the system in the next two years. The costs of dematerialisation have declined as the NSDL slashed charges as volumes expanded and the competition _ from the Central Depository Services Ltd (CSDL) floated by the BSE _ started in 1999 second half. A series of measures by SEBI and NSDL also helped ease the strain faced by retail investors. From a long-term perspective, demat in India is of considerable significance.
Not only has the general trading environment improved and quickened, volumes too have perked up, even in the demat segment. With demat taking off, there is now scope for an improvement in the quality of investor services. As a consequence of dematerialisation, the Indian market is also well prepared for web-based trading though the quality of telecom infrastructure and inadequacies in the banking system-stock exchange linkages may cause delays. Notably, with regard to the thrust towards paperless trading, the Indian market managed in three years what took even the US much longer.
With a high degree of dematerialisation a reality, the stage is set for rolling settlements and web-based trading. Once these are in place, the Indian market will have moved closer to the standards in advanced markets, such as the US. And paperless trading may well be the catalyst for such a rapid advancement. 2. 2 HISTORY OF THE ORGANIZATION: The dematerialized form of shareholding and the depository mode of trade (scrip less trade) have been in operation in developed financial markets for over 15 years.
In India, the first depository commenced operation a decade back and is relatively new. The Indian financial market is in need of both scrip-based and scrip less trade, but the investing community, which is used scrip-based trade, is bound to take some time to accept the latter. The scrip less trading, till now a domain of the western world, institutional investors and GDR holders is now mandatory even for small investors. All those who hold physical share certificates have to get them dematerialized.
If they do not, they will be forced to do so at the time of sale. The countless numbers of conservative Indians have to digest it, whether they like it or not. First, the institutional investors succumbed. Then the high net worth individuals, trading in more than a certain numbers of shares, were forced to give in. now, it is the turn of the small investors of select-companies. With their share certificates being replaced by small slips and receipts, naturally the average investors will have their share of fears and apprehensions.
It is necessary to educate and convince these investors about the benefit of Demat rather than forcing them to take part in the game. 2. 3 Company’s Vision: To make ICICI Direct the dominant online share trading by world class people and services. This we hope to achieve by: • Understanding the needs of customers and offering them superior product and service. • Leveraging technology to service customers quickly and conveniently. • Developing and implementing superior risk management and investment strategic to offer sustainable and stable return to our shareholder. Providing and enabling environment to foster growth and learning for our employees 2. 4 Company’s mission: To judged by their sales and earnings growth rates than on the absolute value of their sales and earnings. Look for companies that consistently grow faster than there peers. Investors prefer companies that increase profit margins — the percentage of sales that they keep — every year. This is accomplished either by lowering expenses or raising prices. Look for companies that consistently find ways to squeeze more profits out of sales than their peers.
The financial health of a company is dependent on a combination of profitability, short-term liquidity and long term liquidity. Companies, which are profitable, but have poor short term or long term liquidity measures, do not survive the troughs of the trade cycle 2. 5 Major Player of the Industry S. S. Kantilal Ishwarlal Securities Pvt. Ltd. (sharekhan. com ): Sharekhan, India’s leading stockbroker is the retail arm of SSKI, and offers you depository services and trade execution facilities for equities, derivatives and commodities backed with investment advice tempered by decades of broking experience.
A research and analysis team is constantly working to track performance and trends. That’s why Sharekhan has the trading products, which are having one of the highest success rates in the industry. Sharekhan is having 240 share shops in 110 cities; the largest chain of retail share shops in India is of Sharekhan. In future, Sharekhan is planning to enter in Mutual funds, Insurance sector and banking sector to expand beyond the market currently covered by it. And it has started MF (Mutual Funds) on priority basis but wants to grow in it.
ICICI WEB TRADE LTD. (lCICIdirect. com): ICICIdirect. com was the first entrant into e-broking. ICICdirect. com provides the 3in-l to the users which ties in their saving bank account and their Demat account to their brokerage account electronically. This integration ensures that money is transferred to/from their bank account and the shares are transferred from/to their Demat account automatically without writing any cheques or transfer instructions while carrying out their trades in shares. ICICldirect. om has the option of trading in shares in cash, margin or spot segments. An investor can also invest in 14 Mutual Funds (Prudential ICICI MF, Franklin Templeton India MF, Alliance Capital MF, 1M MF, Birla Sun Life MF, Sundaram MF, IL MF, Principal MF, HDFC MF, Standard Chartered MF, Reliance Capital MF, Kotak Mahindra MF, TATA MF and DSP MERRILL LYNCH MF) through their trading account. 5Paisa. com: 5paisa is the trade name of India Info line Securities Private Limited (5paisa), member of National Stock Exchange and The Stock Exchange, Mumbai. paisa is a wholly owned subsidiary of India Info line Ltd, India’s leading and most popular finance and investment portal. 5paisa has emerged as one of leading players in e-broking space in India. The company’s brokerage is one of the lowest in the industry. It also provides the research on commodities. Investors can benefit from its analysis and advice available at the click of the mouse. For those who prefer to trade the traditional way, India Info line investor points are available across the country. India Info line was founded by a group of professionals in 1995.
Its institutional investors include Intel Capital, one of the leading technology companies in the world promoted by the UK government, ICICI, TDA and Reeshanar. The company offers a slew of products such as stock and derivatives broking, commodities broking and mutual funds. KOTAK SECURITIES LIMITED (kotakstreet. com): Kotak Securities Ltd. , a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25% – one of the world’s leading investment banks and brokerage firms) is India’s leading stock broking house with a market share of 5 – 6 %.
Kotak Securities Ltd. has been the largest in IPO distribution – It was ranked number One in 2003-04 as Book Running Lead Managers in public equity offerings by PRIME Database. It has also won the Best Equity House A ward from Finance Asia – April 2004. Kotak Securities Ltd is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the company for executing the transactions and the depository services for settling them.
The company has 42 branches servicing around 1,00,000 customers. Kotakstreet. com the online division of Kotak Securities Limited offers Internet Broking services and also online IPO and Mutual Fund Investments. Kotak Securities Limited manages assets over 1700 crores under Portfolio Management Services (PMS) which is mainly to the high end of the market. Kotak Securities Limited has newly launched “Kotak Infinity” as a distinct discretionary Portfolio Management Service, which looks into the middle end of the market. India Bulls:
India bulls is India’s leading retail financial services company with 77 locations spread across 64 cities. Its size and strong balance sheet allows providing varied products and services at very attractive prices, our over 750 Client Relationship Managers are dedicated to serving your unique needs. India bulls is lead by a highly regarded management team that has invested crores of rupees into a world class Infrastructure that provides real-time service & 24/7 access to all information and products. The India bulls Professional Network offers real-time prices, detailed data and news, ntelligent analytics, and electronic trading capabilities, right at your fingertips. This powerful technology is complemented by our knowledgeable and customer focused Relationship Managers. India bulls offer a full range of financial services and products ranging from Equities, Derivatives, Demat services and Insurance to enhance wealth and to achieve the financial goals. MOTILAL OSW AL SECURITIES LTD. (MOSt): One of the top-3 stock-broking houses in India, with a dominant position in both institutional and retail broking, MOSt is amongst the best-capitalized firms in the broking industry in terms of net worth.
MOSt was founded in 1987 as a small sub-broking unit, with just two people running the show. Focus on customer-first-attitude, ethical and transparent business practices, respect for professionalism, research-based value investing and implementation of cutting-edge technology have enabled it to blossom into a thousand-member team. The institutional business unit has relationships with several leading foreign institutional investors (FIls) in the US, UK, Hong Kong and Singapore.
In a recent media report MOSt was rated as one of the top-10 brokers in terms of business transacted for FIls. The retail business unit provides equity investment solutions to more than 50,000 investors through 270 outlets spanning 150 cities and 22 states. MOSt provides AdviceBased Broking, Portfolio Management Services (PMS), E-Broking Services, Depository Services, Commodities Trading, and IPO and Mutual Fund Investment Advisory Services. Its Value PMS Scheme gave a 160% post-tax return for the year ended March 2004.
In Asia Money Brokers Poll 2003 MOSt has been rated as the Best Domestic Research House- Mega Funds, while in 2000 and 2002 it has been rated as the Best Domestic Equity Research House and Second best amongst Indian Brokerage firms respectively. HDFC SECURITIES LTD (HDFCsec): HDFCsec is a brand brought to you by HDFC Securities Ltd, which has been promoted by the HDFC Bank & HDFC with the objective of providing the diverse customer base of the HDFC Group and other investors a capability to transact in the Stock Exchanges & other financial market transactions.
The services comprise online buying and selling of equity shares on the National Stock Exchange (NSE). Buying and selling of select corporate debt and government securities on the NSE would be introduced in a subsequent phase. In a few months, they will also start offering the following online trading services on the BSE and NSE: 0. Buying and selling of shares on the BSE 1. Arbitrage between NSE & BSE 2. Trading in Derivatives on the NSE 3. Margin trading products. They are also planning to include buying and selling of Mutual Funds, IPQ subscriptions, right issues, purchase of Insurance policies and asset financing. . 6 OBJECTIVES OF THE STUDY ? Study of ICICI Direct. com (online share trading) ? Study of dematerialization in ICICI Capital Ltd. ? Customers satisfaction and awareness of ICICI Capital Services Ltd. ICICI Capital Services Ltd. , is depository participant (DP) and it is providing the financial services to the share holders and various other DP’s also providing almost same services which leads to a competition. So in order to retain the existing customers of ICICI Capital Ltd. and to attract new customers knowing the customers need and preferences and expectation is very important.
The study involves knowing the expectation and satisfaction level of ICICI Capital Ltd. customers. 2. 7 PRODUCT PROFILE DE-MAT The dematerialized form of shareholding and the depository mode of trade (scrip less trade) have been in operation in developed financial markets for over 15 years. In India, the first depository commenced operations a decade back and is relatively new. The Indian Financial Markets is in need of both scrip-based trade, but the investing community, which is used to scrip-based and scrip less trade, is bound to take some time to accept the latter.
The scrip less trading, till now a domain of the western world, institutional investors and GDR holders is now mandatory even for small investors. All those who hold physical share certificates have to get them dematerialized. If they do not, they will be forced to do so at the time of sale. A process by which the physical certificates of an investor are taken back by the company / registrar and actually destroyed and an equivalent number of securities are credited in the electronic holdings of the investor.
Offers services to clients dealing in Government securities through the SGL A/C. besides holding the securities, ICICI Capital Services Ltd. ? Provides records update based on the transactions made by the clients. ? Collects and credits the benefits and proceeds from sale to the clients’ account; and ? Supplies periodical reports on the transactions and holding of the clients. Trading: Next function activates when an investor buys or sells in the market. Buying: 1. An investor gets order executed and makes payment to the broker. . Investor instructs his Depository Participant to expect credit on settlement day. Broker instructs his DP to debit his Clearing Member account on settlement day. 3. Before settlement day Broker makes payment to clearinghouse through Clearing Bank. 4. On settlement day Clearing house releases shares to broker’s Clearing Member account which is then transferred to investors account through NSDL (National Securities Depository Limited). Investor gets credit in his account. sELLING: 1. An investor gets order executed. 2.
Investor instructs his Depository Participant to debit his account with immediate effect. The shares move from investors account to Brokers Clearing Member account via NSDL. A Broker clearing member accounts is credited. 3. Before settlement day broker transfers shares from his clearing member account to Clearinghouse via NSDL. His account is debited. 4. On settlement day Broker receives payment from clearing house which he passes on to the investor. ICICIDirect. com ICICIDirect. com is a truly online share-trading site.
This means that from the time you punch in a buy or sell trade on your computer to the final settlement in your account, everything happens completely online. The 3-in-1 e-invest account integrates your brokerage, bank and one or more depository accounts to make sure that you can do the otherwise cumbersome share trading from the comfort of your home or office, at absolutely any time of the day…or night. How can one open an account in demat? First an investor has to approach a DP and fill up an account opening form.
The account opening form must be supported by copies of any one of the approved documents to serve as proof of identity (POI) and proof of address (POA) as specified by SEBI. Besides, production of PAN card in original at the time of opening of account has been made mandatory effective from April 01, 2006. All applicants should carry original documents for verification by an authorized official of the depository participant, under his signature. Further, the investor has to sign an agreement with DP in a depository prescribed standard format, which details rights and duties of investor and DP.
DP should provide the investor with a copy of the agreement and schedule of charges for their future reference. The DP will open the account in the system and give an account number, which is also called BO ID (Beneficiary Owner Identification number). The DP may revise the charges by giving 30 days notice in advance. SEBI has rationalised the cost structure for dematerialisation by removing account opening charges, transaction charges for credit of securities, and custody charges vide circular dated January 28, 2005.
Further, SEBI has vide circular dated November 09, 2005 advised that with effect from January 09, 2006, no charges shall be levied by a depository on DP and consequently, by a DP on a Beneficiary Owner (BO) when a BO transfers all the securities lying in his account to another branch of the same DP or to another DP of the same depository or another depository, provided the BO Account/s at transferee DP and at transferor DP are one and the same, i. e. identical in all respects.
In case the BO Account at transferor DP is a joint account, the BO Account at transferee DP should also be a joint account in the same sequence of ownership. Demat 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 ith “Speak to transfer”, you can also transfer or pledge instructions through our customer care officer. Consolidation Demat Account: Dematerialise your physical shares in various holding patterns and consolidate all such scattered holdings into your primary demat account at reduced cost. Digitally Signed Statement: Receive your account statement and bill by email. Corporate Benefit Tracking: Track your dividend, interest, bonus through your account statement. Mobile Request: Access your demat account by sending SMS to enquire about Holdings, Transactions, Bill & ISIN details.
Mobile Alerts: Receive SMS alerts for all debits/credits as well as for any request which cannot be processed. • Dedicated customer care executives specially trained at our call centre, to handle all your queries. • Countrywide network of over 235 branches, you are never far from an ICICI Bank Demat Services outlet. Product and Services A product for every need: ICICldirect. com is the most comprehensive website, which allows investor to invest in Shares, Mutual funds, Derivatives (Futures and Options) and other financial products.
Simply put ICICldirect. com offer investor a product for every investment need. Trading in shares: 1. Cash Trading:- This is a delivery based trading system, which is generally done with the intention of taking delivery of shares or monies. Cash position is meant to be settled by delivery, the required cash or securities are blocked in full. For example, if you place an order to buy 100 shares of ICICI, you need to have 100% of the order value in your available limit/funds.
And incase you wish to sell 100 ICICI shares you need to have 100% shares in your demat balance. 1. 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. 1. 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 . 4. 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 6. Helps to limit your loss through a Stop Loss Order 7.
Open Margin Plus positions can be closed any time before the End of Settlement timings as specified by ICICldirect. com 8. Auto Square off process to help you close your open positions at the End of the Day. How to place a Margin Plus order? 9. Allocate the funds for trading in Equity segment. 10. Select the link “Margin Plus order” on the trading page. 11. Select the Buy/Sell option and the Stock for trading. (orders can be placed only during market hours) 12. The first Buy/Sell order can only be a market order. 13.
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. 14. Currently offer S&P CNX NIFTY and CNX NIFTY JUNIOR scripts are available in ‘Cash on Spot’. The maximum limit of ‘Cash on Spot’ trades that you can enter into on a daily basis is Rs 10, 00000. 5. BTST (BUY TODAY SELL TOMORROW): -Buy Today Sell Tomorrow (BTST) is a facility that allows you to sell shares even on 15t and 2nd day after the buy order date, without you having to wait for the receipt of shares into your demat account. BTST is relevant for Investor when: – 1.
If you have you ever missed making a huge profit because you had bought the shares just one day back and you could not sell them as they were not credited to your demat account? 2. If you have ever found that squaring off your cash based transactions within a day is not profitable, as one days time does not allow realizing maximum profit? 3. If you have ever thought of an intermediate option between cash and Margin trades where in you could make profits on volatile shares within one or 2 days of your buying them without a compulsory square off? 4.
If you have ever faced any of the above situations, BTST® is for you. 6. CallNTrade®: Call Trade® allows you to call on a local number in your city & trade on the telephone through our Customer Service Executives. This facility is currently available in over 11 major states across India. 7. Trading on NSE/BSE: Through ICICI direct. com, you can trade on NSE as well as BSE. 8. Market Order: You could trade by placing market orders during market hours that allows you to trade at the best obtainable price in the market at the time of execution of the order. 9.
Limit Order: Allows you to place a buy/sell order at a price defined by you. The execution can happen at a price more favorable than the price, which is defined by you, limit orders can be placed by you during holidays & non-market hours too. TRADE IN DERIVATIVES: FUTURES 1. Through ICICI direct. com, you can now trade in index and stock futures on the NSE. In futures trading, you take buy/sell positions in index or stock(s) contracts having a longer contract period of up to 3 months. 1. Trading in FUTURES is simple! If, during the course of the contract life, the price moves in your favor (i. . rises in case you have a buy position or falls in case you have a sell position), you make a profit. 1. Presently only selected stocks, which meet the criteria on liquidity and volume, have been enabled for futures trading. OPTIONS 1. An option is a contract, which gives the buyer the right to buy or sell shares at a specific price, on or before a specific date. For this, the buyer has to pay to the seller some money, which is called premium. There is no obligation on the buyer to complete the transaction if the price is not favorable to him. . 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. 1. 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. 1.
The Buyer of a Put Option has the Right but not the Obligation to Sell the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Put has the obligation of Buying the Underlying Asset at the specified Strike price. By paying lesser amount of premium, you can create positions under OPTIONS and take advantage of more trading opportunities Investing in Mutual funds: ICICldirect. com brings you the same convenience while investing in Mutual funds also Hassle free and Paperless Investing.
With the inclusion of Fidelity MF, you can now invest on-line in 19 mutual Funds through ICICI direct. com. Prudential ICICI MF, JM MF, Alliance MF, Franklin Templeton MF, Sundaram MF, Birla Sun Life MF, HDFC MF, Principal MF, UTI MF, Reliance MF, Kotak MF, Tata MF, DSP Merrill Lynch MF, ING MF, CHOLA MF, Deutsche MF, HSBC MF and Standard Chartered MF are the Mutual Funds available for investment. You can invest in mutual funds without the hassles of filling application forms or any other paperwork.
You need no signatures or proof of identity for investing. Once you place a request for investing in a particular fund, there are no manual processes involved. Your bank funds are automatically debited or credited while simultaneously crediting or debiting your unit holdings. You also get control over your investments with online order confirmations and order status tracking. Get to know the performance of your investments through online updation of MF portfolio with current NA V. ICICldirect. com offers you various options while investing in Mutual Funds:
Purchase: You may invest/purchase Prudential ICICI MF, JM MF, Alliance MF, Franklin Templeton MF, Sundaram MF, Birla Sun Life MF, HDFC MF, Principal MF, UTI MF, Standard Chartered MF, Reliance MF, Kotak MF, Tata MF, DSP Merrill lynch MF, ING MF, CHOLA MF, Deutsche MF, HSBC MF and Fidelity MF without the hassles of filling application forms. Redemption: In addition to giving hassle-free paperless redemption, ICICldirect. com offers faster liquidity. You can redeem the mutual fund units through ICICI direct. com. The money will be credited to your bank account automatically 3 days after the order placement date.
Switch: To suit your changing needs you may wish to shift monies between different schemes. You can switch your monies online from one scheme to another in the same fund family without any hassles. Systematic Investment plans (SIP): SIP allows you to invest a certain sum of money over a period of time periodically. Just fill in the investment amount, the period of investment and the frequency of investing and submit. ICICIdirect. com will do the rest for you automatically investing periodically for you. Systematic withdrawal plan: This allows you to withdraw a certain sum of money over a period of time periodically.
Transfer-in: You can convert your existing Mutual funds into electronic mode through a transfer-in request. IPOs and Bonds Online: You could also invest in Initial Public Offers (IPOs) and Bonds online without going through the hassles of filling ANY application form! paperwork. Get in-depth analyses of new IPOs issues (Initial Public Offerings), which are about to hit the market and analysis on these. IPO calendar, recent IPO listings, prospectus/offer documents, and IPO analysis are few of the features, which help you, keep on top of the IPO markets. Schemes offered for opening Demate account
ICICI direct. com allows 3 in I account scheme for opening Demate account. In which 3 types of account will be opened. 1. Demate account 2. Trading account 3. Savings account in ICICI bank In Surat Demate account will be opened in Athwelines branch and savings account we can open in following any I branch and savings account will be opened at 0 balance. 15. ICICI bank-Athwelines branch, Surat 16. ICICI bank-Ring road branch, Surat 17. ICICI bank-Adajan branch, Surat 18. ICICI bank-varacha branch, Surat The following scheme will be offered for opening Demate account |SCHEME SCHEME |AlC |TYPE OF |BTST |2YRS |NOTES | |CODE |NAME |OPENING |AlC |SCHEME |AMC | | | | |CHARGES | | |FREE | | |S-l |Any kind |750 |3 in 1 |Yes |No |- | | |of general | | | | | | | |customer | | | | | | |Sl3 |Existing |750 |3 in 1 |Yes |No |- | | |alc holder | | | | | | | |in ICICI | | | | | | |~ |bank | | | | | | |S6I |ICICI |500 |3 in 1 |Yes |No |- | | |group | | | | | | | |employees | | | | | | |Sl7 |ICICI has |1 |3 in 1 |Yes |No |- | | |tie up with | | | | | | | |some A, | | | | | | | |A+ | | | | | | | |companIes | | | | | | |Sl7A |ICICI has |1 or 250 |3 in 1 |Yes |No |- | | |tie up with | | | | | | | |some A, | | | | | | | A+ | | | | | | | |compames | | | | | | |S17B |ICICI has |250 or 450 |3 in 1 |Yes |No |- | | |tie up with | | | | | | | |some A, | | | | | | | |A+ | | | | | | | |compames | | | | | | |S18 |Offline |1 or 750 |3 in 1 |Yes |No |- | | |Demate | | | | | | | |alc with | | | | | | | |ICICI | | | | | | | |bank | | | | | | |S22 |The client |1 |3 in 1 |Yes |No |Products | | |have a | | | | |like: -life | | |product of | | | | |Insurance, | | |ICICI | | | | |mutual | | |group | | | | |fund, | | | | | | | |home | | | | | | | |loans, | | | | | | | |general | | | | | | | |Insurance, | | | | | | |credit | | | | | | | |card, gold coin | | | | | | | |of 5 gm | Documents needed for opening Demate account with icicidirect. com List A: – Pan card (compulsory) List B: – bank pass book (nationalized bank only permitted),bank letter in case of icici bank account holder , pass port, electricity bill, telephone bill. List C: – voter id / driving licenece List D: – mobile bill/ LIC premium receipts If customer not able to present any kind of documents from list B then he/she has to present list C + list D (both of combination)
Following documents attached with Demate account form: – 1. Annexure form 2. Declaration form 3. Scheme form 4. Pan card 5. Resident proof from list B or list C + list D 6. Cheques of 1 Rs or 750 Rs The ICICldirect Advantages: – A Unique 3-in-1 account that gives you: 1. Convenience: the 3-in-l accounts integrate your banking, broking and demat accounts. This enables you to trade in shares without going through the hassles of tracking settlement cycles, writing cheques and Transfer Instructions, chasing your broker for cheques or Transfer Instructions etc. 1. Speed: You can now get the latest quotes of scripts on ICICIdirect. com and place an order almost instantly. 1.
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. 1. Independence: Instead of transferring monies to a broker’s pool or towards deposits, you can manage your own demat and bank accounts when you trade through ICICIdirect. com. Brokerage structure of ICICIdirect. com The account opening charges for Idirect account is Rs. 750. ICICIdirect. com provides savings account, trading account, demat account. In which savings account has zero balance facility. And company also provides Debit card for annual charges of Rs. 99 per card.
Following are the brokerage structure for different products. 1. Cash transaction and BTST: – |Total eligible |Brokerage (% of |Brokerage (for |Effective brokerage | |turnover |transaction value) |squared off order) |(for squared off | | | | |order) | |Above 5 crores |0. 25% |Nil |0. 125% | |2 crores to 5 crores |0. 30% |Nil |0. 5% | |1 crores to 2 crores |0. 35% |Nil |0. 175% | |50 lakhs to 1 crores |0. 45% |Nil |0. 225% | |25 lakhs to 50 lakhs |0. 55% |Nil |0. 275% | |10 lakhs to 25 lakhs |0. 70% |Nil |0. 35% | |Less than 10 lakhs |0. 75 |Nil |0. 375% |
The minimum value of the order that will be accepted is 500rs. 2. Margin and margin plus: – |Total eligible turnover |Margin and margin plus | |Above 20 crores |0. 03% | |10 crores to 20 crores |0. 035% | |5 crores to 10 crores |0. 04% | |Less than 5 crores |0. 05% | 3. Cash on spot: – 1% 4. Futures and options: – |Futures | | |Options | | |Total eligible |Brokerage |Effective |Total eligible |Brokerage |Effect | |turnover |(%of |brokerage |turnover |(rupees) |tive | | |transaction |(for squared | | |broker | | |value) |off order) | | |age | | | | | | |(for | | | | | | |square | | | | | | |doff | | | | | | |order) | | | | | | |rupees | |Above 20 crores |0. 03% |0. 15% |Above 20 lakhs |65 |32. 5 | |10 crores to 20 |0. 035 |0. 0175 |10 lakhs to 20 lakhs |70 |35 | |crores | | | | | | |5 crores to 10 crores |0. 04 |0. 02 |5 lakhs to 10 lakhs |75 |37. 5 | |Less than 5 crores |0. 05 |0. 025 |2 lakhs to 5 lakhs |85 |42. | | | | |Less than 2 lakhs |95 |47. 5 | SERVICE TRANSACTION TAX (STT) STT at the rate of 0. 125% of the turnover will be charged in addition to the brokerage on all delivery trades. STT at the rate of 0. 025% of the turnover will be charged in addition to the brokerage on non- delivery trades. STT at the rate of 0. 017% of the turnover will be charged in addition to the brokerage on sell trades. Profile of the Organisation 3. 1 DEPARTMENT/FUNCTIONAL AREAS Infrastructure financing, corporate financing and retail have been the strong pillars of ICICI’s growth.
They expect these to remain thrust areas in the future too. The financial institution sees significant opportunities in the power sector, and in the rapid de-regulation of the Telecom sector. On the retail side, ICICI has established a retail franchisee through a physical presence across 42 cities. Its retail thrust has been on the planks of technology enabled low cost distribution channels like the Internet, Call centers and ATMs. It occupies the number one position in automobile financing (over 20% of the market share), number one in credit cards on an incremental basis. It also has a growing presence in home finance and on-line trading. ICICI Bank
ICICI Bank is a commercial banking outfit set up by the ICICI Group. The Bank was registered a banking company on January 5th, 1994 and received its banking license from the Reserve Bank of India on May 17th, 1994. The Bank has an authorized capital of INR 300crore (USD 75. 96 million), of which subscribed and paid-up capital is INR 165 crore (USD 41. 78 million). The first ICICI Bank branch was started in Madras in June 1994. The branches are fully computerized with state-of-the-art technology and systems. All of them are fully networked through V-SAT (Satellite) technology. The Bank is connected to the international SWIFT network since March 1995.
ICICI Bank offers a wide spectrum of domestic and international banking services to facilitate trade, investment, cross-border business, and treasury and foreign exchange services. This is in addition to a whole range of deposit services offered to individuals and corporate bodies. ICICI Bank’s Infinity was the first Internet banking service in the country, and a prelude to banking in the next millennium. Currently the Bank has around 150,000 customers. iCICI Venture Funds Management Company Limited With the recent spurt in entrepreneurship in the country, venture capital and private equity capital financing are fast attaining a role of prominence.
Uniquely positioned to take the Indian entrepreneur further is ICICI Venture Funds, the wholly owned subsidiary of ICICI, with its keen understanding of the Indian Financial Markets, entrepreneurial ethos, access to global capital and a network through influential global alliances. Strong parentage and affiliates provide ICICI Venture with access to a broad spectrum of financial and analytical resources. An affiliation with (Trust Company of the West) provides a platform for networking Indian Companies to global markets and technology. ICICI Venture Funds currently manages / advises 11 Funds aggregating US$ 400 million, making it the most significant private equity investor in the country.
The investment experience of ICICI Venture’s 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 Venture’s primary investment objective is capital investment through investments by way of equity or equity-related securities in unlisted companies with significant growth potential. ICICI Venture’s investments span a broad spectrum of industries and stages of development, the investment focus being on • Information Technology • Biotechnology and Life Sciences • Media and entertainment Retail Services ICICI Securities and Finance Company Limited Formed in 1993 when ICICI’s Merchant Banking Division was spun off into a new company, I-SEC today are India’s leading Investment Bank and one of the most significant players in the Indian capital markets. Its client list includes some of the best known, most respected names in Indian business and industry, and I-SEC offers them what are probably the widest, most in-depth range of services in the market, with the highest standards of professionalism. Backed by a strong distribution network, I-SEC is acknowledged to be at the forefront of all new developments in the Indian debt market.
I-SEC Research Reports, Compendia, Updates, I-BEX and sovereign Bond Index, have become industry standards, sought after by finance, business and reputed publications alike. The Project Finance Group has helped take strategic projects from the drawing board to financial closure, leveraging the expertise of parent organization. I-SEC has also executed several assignments in M & A, including business valuations, spin-offs and mergers, for both domestic and overseas clients. The range of products offered by i-SEC includes: • Corporate Finance – Mergers and Acquisitions, Equity, Bidding (especially for Telecom Projects) • Fixed Income – Primary Dealership, Debt Research Equities – Lend management, Underwriting, Syndication, Private Equity placement, Sales, Trading, Broking, Sectoral and Company Research I – SEC Continues to sustain a steady rate of growth by offering the most extensive range of services combined with unrivalled standards of professionalism. ICICI Brokerage Services Limited Set up in March 1995, ICICI Brokerage Services is a 100% subsidiary of I-SEC. It commenced its securities brokerage activities in February 1996 and is registered with the National Stock Exchange of India Limited and The Stock Exchange, Mumbai. We are a joint venture between ICICI and the leading financial services provider in India, and prudential plc of U. K. , one of the finest Life insurance companies in the world. Together we provide you with an extensive range of insurance products to suit your various needs at various life stages. We aim to keep you covered, at every step in life.
Their policies are need-specific and address particular age groups. This means that no matter where in life you are, we offer specific products to suit your needs for savings, protection and retirement. Our products can be categorized into the following: • Saving plans • Protection plans • Retirement plans ICICI Personal Financial Services Limited ICICI Personal Financial Services Limited (ICICI PFS), formerly ICICI-Credit, was one of the first four companies to obtain registration as a Non-Banking Financial Company (NBFC) from the Reserve Bank of India (RBI) on September 10, 1997 under the new section 45IA of the Reserve Bank of India Act, 1934.
During the year 1998-99, there was a significant shift in the Company’s operation from leasing to hire purchase to distribution and servicing of all rental products for the ICICI Group. It is now a focal point for marketing and distribution of all rental asset products for ICICI, including auto loans, consumer durable finance and other financial products. The Company has thus become part of ICICI’s retail strategy aimed at offering a comprehensive range of products and services to retail customers. In view of this reorientation of the business, the name of the Company was changed from ICICI Credit Corporation to ICICI Personal Financial Services Limited (ICICI PFS) effective March 22, 1999. ICICI Capital Services Limited ICICI Capital Services Ltd. was incorporated in the name of SCICI Securities Ltd. n September 24, 1994 as a wholly owned subsidiary of erstwhile SCICI Ltd. with the objective of providing stock broking services to the institutional clients and undertaking activities such as underwriting, primary market placements & distribution industry & company research etc. After the amalgamation of SCICI with ICICI effective from April 1, 1996, resulting in the change of the name. The company is mandated, under review by ICICI, to carry out on its behalf the retail resource raising activities and to provide front office services related to all retail and semi retail liability products of ICICI. The company also operates the network of ICICI Centers being set up by ICICI.
As on date the company has set up 91 centers across the country. ICICI InfoTech ICICI InfoTech is a leading provider of end-to-end IT solutions. We have an in-depth experience of having worked on varied technologies with leading corporations worldwide. Our service portfolio includes the following: ? IS & IT Consulting ? Software Design and Development ? Enterprise Application Integration ? Value Chain Management Solutions (SCM, CRM etc. ) ? Application Re-engineering and Management ? Knowledge Management Solutions ? Embedded System Applications ? Technology Incubation, IT-enabled Services & IT Outsourcing ICICI Capital Ltd. Its products are ? RBI Bonds ? E-invest (ICICI Direct. com) ? Fixed Deposits Mutual Funds ? Bonds ? Demat ? Equity IPO ICICI Direct. com (online share trading): ICICI Direct. com is a truly online share-trading site. Which means that from the time you punch in a buy or sell trade on your computer to the final settlement in your account, everything happens completely online? The 3-in-1 e-invest account integrates your brokerage, bank and one or more depository accounts to make sure that you can do the otherwise cumbersome share trading from the comfort of your home or office, at absolutely any time of the day or night 3. 2 PERFORMANCE AND OPERATIONS The Sales turnover of the Company during the year was Rs. 2,602 million.
There is a decrease of 4% from the previous year. Decline in the sale of Carburettors for two wheelers and four wheelers had contributed to the overall sales downturn though the Company has improved the sale of MPFI parts to passenger cars. The profit after tax of the Company for the year under review is Rs. 377 million Due to inclusion of an extraordinary profit of Rs. 250 million on sale of investments, the Profit after Tax has registered an increase of 42% compared to previous year. The profit from the manufacturing activities of the Company is lower mainly due to a. price reduction offered to customers b. increase in the input and raw materials cost . a particular customer in the two wheeler market witnessed a steep decline in the sale of a model for which UFSL is supplying the Carburettors Key Ratios 2005-06 2004-05 Net Profit Ratio (PAT/Sales) 14. 49 9. 49 Net Profit Ratio (PAT/Net worth) 22. 21 18. 13 Current Ratio (Current Assets/Current Liabilities) 1. 67:1 2. 55:1 Debt – Equity Ratio 0. 47:1 0. 04:1 Debtors Turnover (Debtors/Gross Sales) 1. 18 Months 1. 25 Months Creditors Turnover (Creditors/Purchases)1. 86 Months 1. 59 Months Dividend Pay-out Ratio 17 15. 37 . 3. 3 SWOT ANALYSIS OF THE COMPANY: Strengths 1. Management philosophy and commitment to maximize shareholders returns 2.
Upgraded product design and development facilities to develop new products and aid diversification 3. Ongoing activities to support up gradation of operational performance and rise in productivity 4. Team of talented and committed professionals available to improve companies performance Weakness 1. Competition from cheap imports 2. Low customer base Opportunities 1. UFSL has initiated development of products for diesel application. This will provide tremendous scope for diversification and growth 2. Acquisition of AMTEC to provide opportunities to access global OEMs 3. Opportunity to support AMTECs operations by supplying products from India 4. The ntroduction of new emission norms will provide UFSL opportunity to develop injection systems and thereby upgrade the status of the company from product to system supplier. Threats, Risks & Concerns 1. Constant pressure to be cost competitive to meet customer expectations 2. Relentless pressure to maintain profitability due to rising input/raw material prices 3. Increasing popularity of alternative fuel vehicles, such as Hybrid, Hydrogen powered, CNG and LPG vehicles poses new challenges for the company . 3. 4 FUTURE PROSPECTS AND PLANS OF THE ORGANIZATION For ICICI the past half has been a trying period more so because of the adverse environmental conditions such as the depressed equity markets and the volatile currency markets.
However, its retail thrust and a perceptible shift in financing from manufacturing projects to corporate finance will put it in good stead for the quarters to come. Its growing importance in the telecom and infrastructural sectors, which have huge potential, will be a key driver of growth for the future Board of directors of ICICI securities limited ICICI SECURITIES PRIMARY DEALERSHIP LIMITED ? Mr. S. Mukherji,chairman ? Nitin Jain,Managining irectore & CEO ? Ms. Vishakha Mulye ? Mr. A. Murugappam ? Mr. Subir Saha ? Mr. Uday Chitale ICICI SECURITIES LIMITED ? Mr. K. V. Kmath, Chairman ? Mr. S. Mukherji, Managinig Directore & CEO ? Ms. Kalpana Morparia ? Mr. V. Vaidyanathan ? Mr. Nitin Jain ? Mr. Paresh Shah ? Mr. Uday Chitale
ICICI Securities Holdings,Inc. ? Mr. Gopakumar P. ? Mr. Nitin Jain ? Mr. Subir Saha ? Mr. A. Murugappan ICICI Securities INC. ? Mr. Gopakumar P. ,Presiddent ? Mr. Nitin Jain ? Mr. Subir Saha ? Mr. A. Murugappan ? Mr. Anup Bagchi What is all about ICICI securities limited? General Information Name :ICICI SECURITIES LIMITED HEAD OFFICE :ICICI SECURITIES LTD. 2ndFLOOR,STANROSE HOUSE APPASAHEB MARATHE MARG PRABHADEVI MUMBAI-400025 TYPE OF BUSINESS :LIMITED COMPANY PHONE NO :+91 22 6651 1200
FAX NO :+91 22 6651 1451 WEB SITE : www. icicisecurities. com www. icicidirect. com BRAND NAME FOR ONLINE TRADING: [pic] CHIEF EXECUTIVE OFFICER : ANIL KAUL BRANCH IN WHICH TRAINING PERSUDED: BABUBHAI CHAMBERS-1-2-3 ATHWAGATE, OPP. lOLLY PLAZA B/H ASIAN SKY SHOP SURAT HEAD OF THE BRANCH :SUBHENDU DAS (AREA MANAGER) Integrated Equity Solutions Provider ? Among the top branded retail service providers ? Multi – channel access to clients ? Tailor made research and products ? Depository Services ? Derivatives ? Innovative product for enhanced performance Best research team in the world About ICICI SECURITIES LIMITED 19. ICICI securities ltd named its online division as ICICI direct. com and it is into retail Broking 20. The business of the company overhauled