Introduction

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.
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KOSHYS INSTITUTE OF MANAGEMENT
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 d-mat, from the point of view of investors there are
numerous problems. Here, Wallet Watch introduces you to setting up of a d-mat
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.
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 dayor 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
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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.
De-mat Services
ICICI Bank De-mat Services boasts of an ever-growing customer base of over 11.5
lakhs 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.
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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 in
case 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.
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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 intraday 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.
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.
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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 st 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.
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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 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.
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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 NAV.
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
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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 3 in 1 scheme we can open our saving account as
well demate and trading account where saving account can be open with a zero
balance which will be link with demat account.
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The following scheme will be offered for opening Demate account
Schem Scheme Act Types of Best 2 year Notes
e code name opening acts scheme AMC
charge free
S-1 Any kinds of 975 3 in 1 Yes No -
general
customer
S-13 Existing act 975 3 in 1 Yes No -
holders in
ICICI bank
S-16 ICICI group 250 3 in 1 Yes No -
employee
S-17 ICICI has 1 3 in 1 Yes No -
tie up with
some A+
companies
S-17A ICICI has 1 or 3 in 1 Yes No -
tie up with 125
A and A+
companies
S-17B ICICI has 250 3 in 1 Yes No -
tie up with
some A,
A+
companies
S-18 Offline 1-750 3 in 1 Yes No -
demate act
with ICICI
bank
S-22 The client 1 3 in 1 YES NO PRODU
have a CTS-
products of life
ICICI insuranc
GROUP e,mutual
funds,
home
loan,gen
ral
insuranc
e, credit
card,gol
d coin
of 5 gm
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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.
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 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 I-direct account is Rs. 975.
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.
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Following are the brokerage structure for different products.
1. Cash transaction and BTST: -
Total eligible Brokerage (% of Brokerage (for Effective

turnover transaction value) squared off (for squared off
brokerage
order) order)
Above 5 crores 0.25% Nil 0.125%
2 crores to 5
0.30% Nil 0.15%
crores
1 crores to 2
0.35% Nil 0.175%
crores
50 lakhs to 1
0.45% Nil 0.225%
crores
25 lakhs to 50
0.55% Nil 0.275%
lakhs
10 lakhs to 25
0.70% Nil 0.35%
lakhs
Less than 25 lakhs 0.75 Nil 0.375%
the minimum value of the order that will be accepted is 200rs.
2. Margin and margin plus: -
Total eligible turnover Margin and margin

Above 20 crores plus
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%
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4. DERIVATIVES BROKRAGE SCHEDULE
FOR EQUITY CURENCY OPTIONS
EQUITY/CURRENCY FUTURES FUTURES
FUTURE
Total Brokerage Brokerage Brokerage Total Flat Brokerage
eligible (%) on on eligible brokerage on second
Turnover Second leg Second leg Lots per Per lot leg
Per month Of intra Of intra month Of intra
day day day
Square off Square off Squarecoff
(per lot)(rs) (per lot)(rs) (per lot)(rs)
Above 20 0.030 25 10 Above 600 65 25
crore
10-20 0.035 25 10 301-600 70 25
crores
5-10 crores 0.040 25 10 151-300 75 25
Less then 5 0.050 25 10 61-150 85 25
crore 0-60 95 25
5.MF TRANSACTION CHARGES
with effect from august 01,2009, the fees structure for investments for investments
in mutual funds units through www.icicidirect.com has been revised. following is
the revised fees structure: service tax per tranaction 12.36% on charges.
AUM* CUT OFF CHARGES PER TRANSACTION

LUMP SUM PURCHASES SIP
LESS THAN 8 LAKHS RS 100 RS 30 OR 1.5%,
Whichever is lower
8 lakh or more Nil Nil
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6.detail of statutory / regulatory charges
Charges Cash/delivery Margine/ Future/ future plus options

Transactions Margine Currency futures
plus
Service tax 12.36%
Securities 0.125% on 0.025% on 0.017% Nil 0.017%on
transactions turn over turn (trade premium in
tax over(sell value in case of sell
transaction) case of sell traders
trades) and0.125%
on
settlement
value
where
option
contracts
are
exercised
Transaction 0.0031% for 0.0031% 0.00185 Nil 0.05% (on
charges* NSE and for NSE (on turn premium
0.0035% for and over) amount
BSE on 0.0035% each side)
turnover for BSE on
turnover
SEBI turn 0.0001% on 0.0001% 0.0001% 0.0001% 0.0001%
over turn over on turn (trade (on
charges over value and premium
closeout) and
notional
value for
exercise
assignment)
Stamp duty 0.01% 0.002% of 0.002% Stamp duty 0.002% (on
turnover (trade will be premium
value and charged at and
closeout) the rate of notional
200 per value for
crore or exercise
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0.002% assignment)
icicidirect.com
LIST OF DOCUMENTS REQUIRED FOR OPEN A DEMATE ACCOUNT.
A: - Pan card (compulsory)

B: - Cheque in the name of "ICICI SEQURITIES"
C: - voter id / driving licenece / latest 3month Bank statement/ mobile bill
D: - passport size photo
E:- Company id(if customer is working with any company)
F:- salary slip((if customer is working with any company)
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CHAPTER-2. REVIEW OF LITERATURE
DEMATERIALISATION:
Dematerialization is the process by which physical certificates of

an investor are converted to an equivalent number of securities in electronic form
and credited to the investors depository account with his Depository Party (DP)
DEPOSITORY
A Depository account is similar to a bank account. It gives a summary
investors holding of securities in the companies in the Indian Stock Exchange
and records transaction details of securities bought and sold during the period.
The information of securities holding is maintained in the electronic form.The

securities in the depository account do not have any numbers to distinguish them
and are identified by the total number of securities held for each company by the
depository on the investors account.
DEPOSITORY PARTICIPANTS
A Depository participant is an agent appointed by the depository and is
authorized to offer depository services to all investors. An investor can not
directly open a demat account with the depository. An investor has to open his
account through a DP only. The DP in turn opens the account with the
Depository. The DP in turn takes up the responsibility of maintaining the
account and updating them as per the instructions given by the investor from
time to time.
The DP generates and provides the holdings statement from time to time as
required by the investor. Thus, the Depository Party (DP) is basically the
interface between the investor and the depository.
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STATEMENT OF 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 Capital
Services Ltd
SCOPE OF 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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OBJECTIVE OF THE PROBLEM
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 DPs 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.
HYPOTHESIS
PLEDGE OF HYPOTHECATION OF SECURITIES HELD IN A
DEPOSITORY
Subject to such regulations and bylaws, as may be made in this behalf,
a beneficial owner may with the previous approval of the depository
create a pledge or hypothecation in respect of a security owned by him
through a depository.
Every beneficial owner shall give intimation of such pledge or

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hypothecation to the depository and such depository shall thereupon
make entries in its records accordingly.
Any entry in the records of a depository under sub-section (2) shall be
evidence of a pledge or hypothecation.
OPERATIONAL DEFINATIONS OF CONCEPT

DEMATERIALIZATION:
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.
REMATERIALIZATION:
Conversion of shares from electronic form into physical form of the investors.
DEPOSITORY:
An organization where the securities of a shareholder are held in the

electronic form, at the request of the shareholder through the medium of the
depository participant.
DEMAT BASICS:
Before coming to those issues let us first ponder over what exactly Demat
share is and what has compelled Indian markets to go for such alternative. A
Demat share is a share kept in the electronic form, on behalf of the investor.
This share is held in the electronic form by an agency called National Security
Depository Limited. This agency is promoted solely for this purpose IDBI, UTI
and NSE. The State Bank of India has also acquired a minor stake in NSDL
subsequently. A depository participant interfaces between NSDL and the
investor.
HOLDING SECURITIES IN ELECTRONIC FORM:
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A Demat share is very much different from a physical share in the following
manner:
It is held by NSDL on behalf of the investor whereas the investor holds a
physical share himself.
The holding and handling of such share is in electronic form.
An agent called depository participant wherein every investor who want to
hold share in Demat form has to open a account, provides the interface
between NSDL and the investor.
The NSDL can also legally transfer the demat shares into buyers account
from sellers account.
The demat share kept in the electronic form can also be converted to
physical share on request.
Unlike physical share the demat share doesnt have folio number or
certificate number.
There is no stamp duty in transfer of demat share from one account to
another, but depository participant charges some amount as transaction
fee as well as asset holding charges.
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RESEARCH METHODOLOGY
2.1 Introduction
A research design is a logical and systematic plan prepared for directing a research
study. It specifies the objectives of the study, the methodology and techniques to
be adopted for achieving the objectives. It constitutes the blueprint for the
collection, measurement and analysis of data. It is the plan, structure and strategy
of investigation conceived so as to obtain answers to research questions. The plan
is the overall scheme or program of research. A research design is the program that
guides the investigator in the process of collecting, analyzing and interpreting
observations. The preparation of a research plan for a study aids in establishing
direction to the study and in knowing exactly what has to be done and how and
when it has to be done at every stage.
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Without a research plan or research design, research work becomes unfocussed
and aimless empirical wandering. The use of research design prevents such a blind
search and indiscriminate gathering of data and guides him to proceed in the right
direction. The design also enables the researcher to anticipate potential problems of
data gathering, operations of concepts, measurement, etc
RESEARCH DESIGN OF THE STUDY
The study is based on survey technique. The study consists of analysis

about customers awareness and satisfaction of ICICI Capital Ltd. For
the purpose of the study customers100 are picked up and their views
solicited on different parameters. The methodology adopted
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 simple statistical techniques has processed the
data collected.
SOURCES OF DATA :
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 within th e limited p eriod of
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time. Hen ce samp lin g su rv ey meth od was adop ted fo r
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.
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
picked up.
Field Study:
directly approached respondents.
4.4 DATA COLLECTION INSTRUMENT
COLLECTION OF DATA THROUGH QUESTIONNAIRES:
The data collected for the study purpose is through questionnaires. Hundred
customers of I C I C I d i r e c t . c o m h a v e b e e n s e l e c t e d r a n d o ml y f o r t he
s t u d y p u r p o s e a n d t h e n t h e information 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. The d a t a i s
c o l l e c t e d t h r o u g h t h e d i r e c t i n t e r a c t i o n wi t h t h e I C I C I s
c u s t o me r s t h r o u g h questionnaires answered by them. hundred
customers of ICICI were randomly chosen for the purpose of the study in
Bangalore
23
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.
24
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 with which the customers have given their answers
and the accuracy level of the answers cannot be predicted.
CHAPTER SCHEME:
AN OVERVIEW OF THE REPORT
Chapter 1: Contains the general introduction and theoretical background of

the study.
Chapter 2: Consists of aspects of statement of the problem, literature

review, objectives, need, research design, scope and limitation of the study.
Overall its a research methodology of the study.
Chapter 3: Consists of all details relating to ICICI Ltd., and its Groups,
origin of organization, its development and future prospects. It also includes
profile of the respondents.
Chapter 4: Analysis regarding the customer awareness, satisfaction level

and findings including testing of hypothesis.
Chapter 5: Summary of findings, conclusions and recommendations.
25
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 17 th, 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 Banks Infinity
26
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 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
ICICI SECURITIES AND FINANCE COMPANY LIMITED

Formed in 1993 when ICICIs Merchant Banking Division was spun off into a new
company, I-SEC today are Indias 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
27
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
28
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 Companys 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 ICICIs 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.
on 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.
29
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
30
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 clamored
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 capitalization of Rs. 7,37,300 crores (almost 80 per cent of the market
capitalization 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 dematerialized, the concept of
31
dematerialization 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 dematerialization 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 service.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.
32
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.
Providing and enabling environment to foster growth and learning for our
employees
2.4 Companys 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
33
OBJECTIVES OF THE STUDY
Every company has a particular goal. A study without objectives cannot reach
the destination. My project work programe 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.
2.5 NEED FOR THE STUDY

To study the various concepts of demat and online trading.
To study the various plans of the
To study the cost of online trading.
To know the market leaders in this segment.
To offer suggestions based on findings.
34
2.5 Major Player of the Industry
S. S. Kantilal Ishwarlal Securities Pvt. Ltd. (sharekhan.com ):

Share khan, 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 Share khan has the trading products, which are
having one of the highest success rates in the industry. Share khan is having 240
share shops in 110 cities; the largest chain of retail share shops in India is of
Share khan.
In future, Share khan 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.com 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&FS 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. 5paisa 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
35
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.
36
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, intelligent 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
(FIIs) 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 FIIs. 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
Advice Based 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.
37
HDFC SECURITIES LTD (HDFCsec):
HDFC sec 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:
Buying and selling of shares on the BSE

Arbitrage between NSE & BSE
Trading in Derivatives on the NSE
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
DATA ANALYSIS AND INTERPRETATION

Table No. 5.1 Customers preference over other depository services in ICICI
Direct.com
Attributes No. of Persons Percentage
Quality Service 50 50
38
Safety 20 20
Reach 12 12
Vast variety of Service 4 4
Nothing in Particular 14 14
Chart No. 5.1 Percentage of customers preference over other depository

services in ICICI Direct.com.
Quality Service
Safety
Reach
Vast variety of
Service
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
Table No. 5.2 Different types of investors having ICICI Direct.com.
Small Investors Long term investors Traders
32
58 10
Chart No. 5.2 Percentage of investors having ICICI Direct.com.

39
TYPES OF INVESTORS
Small Investors
Long term investors
Traders
The above table shows that out of 100 customers, 58 customers are small investors
and 32 customers are long term investors.
Table No. 5.3 Number of availed of the services in ICICI Direct.com.
Schemes/Services No of Persons Percentage
ICICI Direct.com 32 32
Settlement 9 9
Transmission of
23 23
Securities
40
New Services
Sell 'N' Cash 5 5
Mutual funds 31 31
Chart No. 5.3 Percentage of availed of the services in. ICICI Direct.com
70
60
50
40
30
20
10
0
ICICI Settlement Transmission New Sell 'N' Cash Mutual funds
Direct.com of Securities Services
Table No. 5.4 Number of customers aware of services offered by ICICI

Capital Ltd.
Schemes/Services No of Persons Percentage
ICICIDirect.com 100 100
41
Settlement 70 70
Transmission of
64 64
Securities
New Services
Sell 'N' Cash 56 56
Mutual Fund 18 36
Loans Against de-mat

24 48
shares
Chart No. 5.4 Percentage of customers aware of services offered by ICICI

Capital Ltd.
SCHEMES/SERVICES
ICICIDirect.com
Settlement
Transmission of Securities
Sell 'N' Cash
Mutual Fund
Loans Against de-mat shares
Table No. 5.5 Customers awareness of the new services offered by ICICI
Direct.com
Through News Paper/

Broker Agents Others
ICICI Magazines
42
Direct.Com
50 10 8 32 0
50% 10% 8% 32% 0
Chart No. 5.5 Percentage of customers awareness of the new services offered
by ICICI Direct.com
50
40
30
20
10
0
Through ICICI News Paper/ Broker Agents
Direct.Com Magazines
According to the survey 50% customers know the services through ICICI and 32%
through ICICI agent
Table No. 5.6 Customers first source of awareness
Through News paper /

Broker Agents Others
ICICI Magazines
43
Direct.Com
34 12 14 34 6
34% 12% 14% 34% 6%
Chart No. 5.6 Percentage of customers first source of awareness
CUSTOMER'S FIRST SOURCES OF AWARENESS
Through ICICI Direct.Com

News paper / Magazines
Broker
Agents
Others
According to the survey the first source of information is ICICI Direct.Com itself
and the agents.
Table No. 5.7 Customers satisfaction of the services of ICICI Direct.Com
44
Neither
Mostly Mostly
Satisfied Satisfied / Unsatisfied
Satisfied Unsatisfied
Unsatisfied
64 24 10 2 0
64% 24% 10% 2% 0
Chart No. 4.7 Percentage of customers satisfaction of the services of ICICI

Direct.Com
Satisfied
Mostly Satisfied
Neither Satisfied /
Unsatisfied
Mostly Unsatisfied
Unsatisfied
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.
Table No. 5.8 Customers satisfaction of the Demat services of ICICI

Direct.Com
45
Neither
Mostly Mostly
Satisfied Satisfied / Unsatisfied
Unsatisfied
46 22 16 12 4
46% 22% 16% 12% 4%
Chart No. 5.8 Percentage of customers satisfaction of the Demat services of

ICICI Direct.Com
Satisfied
Mostly Satisfied
Neither Satisfied /
Unsatisfied
Unsatisfied
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
46
Neither
Mostly Mostly
Satisfied Satisfied/ Unsatisfied
Unsatisfied
40 26 14 8 12
40% 26% 14% 8% 12%
Chart No. 5.9 Percentage of customers satisfaction with the purchase and
sales of ICICI Direct.Com
40
35
30
25
20
15
10
5
0
Satisfied Mostly Neither Mostly Unsatisfied
Unsatisfied
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
47
Neither
Mostly Mostly
Unsatisfied
30 22 32 12 4
30% 22% 32% 12% 4%
Chart No. 5.10 Percentage of customers satisfaction with the transmission of

securities of ICICI Direct.Com
35
30
25
20
15
10
5
0
Unsatisfied
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 sale of their securities in cash
48
Neither
Mostly Mostly
Unsatisfied
70 20 10 0 0
70% 20% 10% 0 0
Chart No. 5.11 Percentage of customers satisfaction with the sale of their
securities in cash
70
60
50
40
30
20
10
0
Unsatisfied
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 sale of customers securities in cash.
Table No. 5.12 Customers satisfaction with the mutual fund service of ICICI
Capital Ltd.
49
Neither
Mostly Mostly
Unsatisfied
38 34 24 4 0
38% 34% 24% 4% 0
Chart No. 5.12 Percentage of customers satisfaction with the mutual fund
service of ICICI Capital Ltd.
Satisfied
Mostly Satisfied
Neither Satisfied/
Unsatisfied
Mostly Unsatisfied
Unsatisfied
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.
50
Neither
Mostly Mostly
Unsatisfied
52 24 20 4 0
52% 24% 20% 4% 0
Chart No. 5.13 Percentage of customers satisfaction with the trading demos
provided by the ICICI Capital Ltd.
Satisfied
Mostly Satisfied
Neither Satisfied/
Unsatisfied
Mostly Unsatisfied
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
51
Neither
Mostly Mostly
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
35
30
25
20
15
10
5
0
Unsatisfied
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.
52
Neither
Mostly Mostly
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.
50
45
40
35
30
25
20
15
10
5
0
Unsatisfied
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.
53
Neither
Mostly Mostly
Unsatisfied
32 46 4 14 4
32% 46% 4% 14% 4%
Chart No. 5.16 Percentage of customers satisfaction with the co-operation by

the staff of ICICI Capital Ltd.
Satisfied
Mostly Satisfied
Neither Satisfied/ Unsatisfied
Mostly Unsatisfied
Unsatisfied
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
54
Very High High Reasonable Low Very Low
12 14 72 2 0
12% 14% 72% 2% 0
Chart No. 5.17 Percentage of customers satisfaction with the tariff structure
of ICICI Direct.Com
80
70
60
50
40
30
20
10
0
Very High High Reasonable Low Very Low
According to the survey, the tariff structure of ICICI Direct.Com is reasonable.

Customers told me that the brokerage of 0.75% is reasonable because it is the only
organization which deals with the primary and secondary market both. ICICI
Direct.Com also has many investment options than any other organization.
Table No. 5.18 Customers satisfaction when dealing with the problems
through ICICI Direct.Com
55
Schemes / Services No of Persons Percentage
Frequent reminders are

given to ICICI Direct.com 24 24%
for update the information
Irregular receipt of Holding

22 22%
/ Transaction statements
Improper format of
Holding / Transaction 16 16%
statements
Improper attention given to

14 14%
the enquiries
Billing problem 10 10%
Inadequate information 14 14%
Chart No. 5.18 Percentage of customers rating of the services of ICICI

Direct.Com
56
8% 0%
36%
56%
1 2 3 4 5 6
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. 5.19 Customers rating of the services of ICICI Direct.Com
0 0 18 28 4 0
0% 20% 40% 60% 80% 100%
0 0 36% 56% 8% 0
Chart No. 5.19 Percentage of customers preference for ICICI Direct.Com

over its competitors
57
8% 6%
24% 52%
10%
Quality Service Rates charged Nothing in Particular Safety Reach
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.
Table no. 5.20 Customers awareness of the products of ICICI Capital Ltd.
58
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
Chart No. 5.20 Percentage of Customers awareness of the products of ICICI

Capital Ltd.
59
44 41
50
37
39 45
ICICI Bonds ICICIDirect.com Mutual Fund
Equity IPO Fixed Deposit RBI Bonds
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.
60
SUMMARY OF FINDING, CONCLUSIONAND SUGGESTION
FINDINGS & CONCLUSION
6.1 FINDINGS
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 directly and independently.
The depository participant will allow an investor to trade through any

broker of his choice registered with the stock exchanges connected with
National Securities Depository Ltd, what will have to provide the details of
investors account with Depository 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 be viewed for their status.
Transaction details for the traders done in the last month are available
online.
Printed account statements too are available for earlier.
61
6.2 SUGGESTIONS
Some customers feel that they are trained for ICICI Direct.Com demo. Many
customers 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
Mutual Fund. ICICI Capital Services Ltd. and the normal tendency of the
customer are both investing in shares and in Mutual Funds are one and the
same. So for this ICICI Capital Services Ltd., should create an awareness of
what exactly mean by Mutual Funds and all other services of ICICI Capital
Services Ltd.
After getting the printouts of the holding statement, dispatch of the same should
be taken place with no delay and this can be cross verified with the sender
(dispatch section).
Customers are facing overcrowding, non-availability of telephone lines, so

proper measures should be taken to overcome these problems.
The ICICI official should conduct regular training demo classes for the new
account holders.
62
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
63
BIBLIOGRAPHY
Books and journals:-
ICICIdirect.com broachers and leaflets
Periodical published by ICICI Capital Ltd.
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
64
QUESTIONNAIRE
Name:-
E mail:.
1) How do you justify your preference for ICICI Capital Ltd. over other
Depository Services?
o Quality Service
o Safety
o Reach
o Vast variety of Service
o Nothing in Particular
2) What are the different types of investors having. ICICI Direct.com?
o Long term investors

o Small Investors
o Traders
65
3) In which scheme are you holding your shares in ICICI Direct.com.?
o ICICIDirect.com
o Settlement
o Transmission of Securities
o Sell 'N' Cash
o Mutual funds
4) Do you aware the services offered by. ICICI Direct.com?
o ICICIDirect.com
o Settlement
o Transmission of
Securities o Sell 'N' Cash
o Loans Against de-mat

o Mutual Fund
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 News Paper/ Magazines

o Broker o Agents
o Others
66
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 News Paper/ Magazines

o Broker o Agents
o Others
7) Are you satisfied with the services of ICICI Direct.Com?
o Satisfied o Mostly Satisfied

o Neither Satisfied /
o Mostly Unsatisfied
Unsatisfied
o Unsatisfied
8) Are you satisfied with the Demat services of ICICI Direct.Com?

Unsatisfied
o Unsatisfied
67
9) Are you satisfied with the purchase and sales of ICICI Direct.Com?

Unsatisfied
o Unsatisfied
10) Are you satisfied with the transmission of securities of ICICI

Direct.Com?

Unsatisfied
o Unsatisfied
11) Are the customers satisfied with the sell their securities in cash?

Unsatisfied
o Unsatisfied
68
12) Are you satisfied with the trading demos provided by ICICI
Direct.com.?

Unsatisfied
o Unsatisfied
13) Are you satisfied with the periodic receipts and holding statements
of ICICI Direct.Com?

Unsatisfied
o Unsatisfied
14) Are the customers satisfied with the telephonic enquiries of ICICI
Direct.com?

Unsatisfied
o Unsatisfied
69
15) Are the customers satisfied with the co-operation by the staff of
ICICI Direct.com.?

Unsatisfied
o Unsatisfied
16) 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
17) Overall how the customers rate the services of ICICI Direct.Com?
o 0% o 20 %
o 40 % o 60 %
o 80 % o 100 %
18) Are the customers aware of the following products of ICICI

Direct.com.?
o ICICI Bonds o ICICIDirect.com

o Mutual Fund o Equity IPO
o Fixed Deposit o RBI Bonds
70
19) 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
71
72
73
74

Introduction

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Introduction

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INTRODUCTION

1.1 GENERAL INTRODUCTION

PHYSICAL CERTIFICATES - THE TRADITIONAL WAY

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

Possibility of forgery on various documents leading to bad deliveries, legal

Theft of shares leading to defective title in shares purchased and subsequent

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

E-Instructions: You can transfer securities 24 hours a day, 7 days a week

Consolidation Demat Account: Dematerialise your physical shares in various

Digitally Signed Statement: Receive your account statement and bill by

Corporate Benefit Tracking: Track your dividend, interest, bonus through

Dedicated customer care executives specially trained at our call centre, to

Product and Services

A product for every need: ICICldirect.com is the most comprehensive website,

1. Cash Trading:- This is a delivery based trading system, which is generally

2. Margin Trading: You can also do an intra-settlement trading up to 3 to 4

Margin PLUS offers an order placement feature through which you

How to place a Margin Plus order?

5.BTST (BUY TODAY SELL TOMORROW): -Buy Today Sell

BTST is relevant for Investor when: -

2. To take the buy/sell position on index/stock options, you have to place

Investing in Mutual funds:

ICICldirect.com offers you various options while investing in Mutual Funds:

Redemption: In addition to giving hassle-free paperless redemption,

Systematic withdrawal plan: This allows you to withdraw a certain sum of

IPOs and Bonds Online:

Schemes offered for opening Demate account

ICICI direct.com allows 3 in I account scheme for opening Demate account. In

4. Independence: Instead of transferring monies to a broker's pool or towards

Brokerage structure of ICICIdirect.com

The account opening charges for I-direct account is Rs. 975.

ICICIdirect.com provides savings account, trading account, demat account. In

1. Cash transaction and BTST: -

Total eligible Brokerage (% of Brokerage (for Effective

the minimum value of the order that will be accepted is 200rs.

2. Margin and margin plus: -

Total eligible turnover Margin and margin

5.MF TRANSACTION CHARGES

AUM* CUT OFF CHARGES PER TRANSACTION

Charges Cash/delivery Margine/ Future/ future plus options

LIST OF DOCUMENTS REQUIRED FOR OPEN A DEMATE ACCOUNT.

A: - Pan card (compulsory)

Dematerialization is the process by which physical certificates of

A Depository account is similar to a bank account. It gives a summary

investors holding of securities in the companies in the Indian Stock Exchange

The information of securities holding is maintained in the electronic form.The

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

providing almost same services which leads to a competition. So in order to

customers knowing the customers need and preferences and expectation is

level of ICICI Capital Ltd. customers.

Subject to such regulations and bylaws, as may be made in this behalf,

a beneficial owner may with the previous approval of the depository

create a pledge or hypothecation in respect of a security owned by him

Every beneficial owner shall give intimation of such pledge or

make entries in its records accordingly.

Any entry in the records of a depository under sub-section (2) shall be

evidence of a pledge or hypothecation.

OPERATIONAL DEFINATIONS OF CONCEPT

An organization where the securities of a shareholder are held in the

HOLDING SECURITIES IN ELECTRONIC FORM: