A

PROJECT REPORT

ON

“A STUDY ON CUSTOMER SATISFACTION”

WITH RESPECT TO

“ICICI direct.com”

SUBMITTED TO UNIVERSITY OF PUNEIN PARTIAL FULLFILMENT OF 2 YEARS FULL TIME COURSE

MASTERS IN BUSINESS ADMINISRATION (MBA)

SUBMITTED BY

AMIT UTTAM CHAUGULE

(BATCH-2007-2008)

UNDER THE GUIDANCE OF

PROF.MRS. SMITA SOVANI

BRACTS’s

VISHWAKARMA INSTITUTE OF MANAGEMENT

KONDHWA PUNE- 411014

1

Acknowledgement

We take this opportunity to express our

sincere thanks & deep sense of gratitude to

our Director Dr.Sharad Joshi

We also express our sincere thanks to my

project guide Prof. Mrs. Smita Sovani it is

highly difficult confine in words. Our gratitude

to them for their able guidance &

spontaneous solutions to any problems that

cropped out during our course of work.

Finally we express our thanks to all

staff members & our friends who have directly

or indirectly helped in complication of this

project. I heartily thank to Mr. Rajesh

Kadam for providing the information

regarding the customer satisfaction survey.

Place: -

Date:-

(Amit U chaugule)

2

1.1 - Methodology

1.2 - Objective of the study

1.3 - Importance of the study

1.4 - Scope of the study

1.5 - Limitation of the study

1.6 - Chapter scheme

3

3.1 - what is customer satisfaction

3.2 - what the customer expects and satisfaction level

3.3 - Customer Satisfaction Management Process

3.4 - Theory of Investing

3.5 - Indian Stock Market Overview

4

2.1 - About ICICI direct.com

2.2 - Products and Services

5

6

5.1 Findings

5.2 Suggestions

5.3 Conclusion

7

INDEX

Chapter particular Page nos.

Chapter I Introduction to the study

1

Chapter II Profile of the organization 8

Chapter III Theoretical background 28

8

Chapter IV Data Interpretation and Collection

44

Chapter V Findings and Suggestions, Conclusion

54

Chapter VI Annexure 57

Chapter VII Bibliography 59

9

Introduction to study

The capital market consists of two kinds (a) Primary market, (b) Secondary market.

Primary market is popularly known as new issue market.

Secondary market is an important component of capital market. The stock exchanges

are known as secondary market.

To learn more about how customers can earn through the stock market, on has to

understand how it works. A person desirous of buying /selling shares in the market has

to first place his order with a broker. When the buy order of the shares is communicated

to the broker he routes the order through his system to the exchange. The order stays in

the queue exchanges system and gets executed when the order logs on the system

within buy limit that has been specified. The shares purchased will be sent to purchaser

by the broker either in physical or demat format.

Customer can buy and sell securities on the stock exchanges, through online automated

order processing system provided by the company. Customer can log on at any time,

during or after trade hour and place an order. The online investment option of ICICI

Direct is safest way to the investor to invest in Mutual Fund, IPO, Bonds and Postal

Saving.ICICIdirect.com thrives continuous endeavor to satisfy its customers and

provide them with the highest level of convenience.

Survey reveals the needs, perception and opinion etc of the existing customers of the

ICICI direct.com. This survey also tells about the satisfaction of the customers towards

the services provided by the ICICI direct.com. the changing scenario of the today’s Hi-

tech business era ICICI direct,com. provides the online share trading and holding of the

scrip’s.

1.1 Methodology

Sampling design: -

A sampling design is a definite plan for obtaining a sample from a given sample limit.

It refers to technique or procedure the researcher would adopt in selecting items for the

sample, sample design is determined before data allotted.

10

Sample units: -

Here the ICICI Direct.com existing customers are the sample unit for taking the

feedback regarding the level of customer satisfaction.

Sample size: -

The Sample limit has 100 customers.

Primary Data: -

Primary data is a data collected for the first time and which is new to the study. Primary

Data has been collected through the questionnaire from existing customer of ICICI

direct.com. Pune branch.

Secondary Data: -

It already exists data, which has collected through magazines and internal document of

the organization, website of icicidirect.com etc which helped to the researcher in study.

Research approaches :-

There can be four ways of collecting data observation focus, graph and experimental.

These study closely related to survey method.

Research instruments:-

Research instruments used for collecting primary data is questionnaire for this study the

research instruments used was questionnaire.

Questionnaire: -

A Questionnaire is a set of question with or without blank space for recording

answers. The question can secure the relevant facts or opinion from informal and

interested respondent included in the sample survey. Researcher had taken the help of

the questionnaire for this survey of the customer satisfaction.

11

1.2 Objective of the study

The main objective of the study was the survey of the level of the customer

satisfaction with reference to ICICI direct.com. To study the efforts taken for to achieve

the customer satisfaction towards the ICICI direct.com.

1. To know the consumer behavior of the Customers of ICICI direct.com.

2. To know the reason for which the customers are attracted towards ICICI

direct.com

3. To know which services provided by ICICI direct.com, are mostly attracted by

the customers.

4. To study the efforts taken by management for the purpose maintaining quality

and services in the customer satisfaction.

12

1.3 Importance of the study

1. The study will be useful to organization in content of understanding customer

satisfaction and it will also useful to organization in relation to possible

modification in present market system.

2. The study will be useful to the other experts and the student’s researchers to

study in the same area.

3. The study may help to organization to improve their quality in dealing its

customers.

4. The study will be remaining as guidance for the organization for better

customer satisfaction.

5. The study may help the organization to plan future policies and strategies for

better costumer satisfaction.

6. The project study will be help in finding solutions of the problem faced by

customer and the problems faced by the organization.

13

1.4 Scope of the study

The scope of the study was limited to Pune city. As the sample size was 100

customers only. In today’s cutthroat competition to increase the market share there is

need to satisfy the customer’s needs and wants. For this purpose all organizations are

required to conduct research work to understand customer’s needs and expectation

from the company.

For every research work the study may have geographical conceptual scope. As subject

to the products limited to the study to the Pune district. The survey conducted will give

the details about the customer satisfaction level responding product and services.

14

1.5 Limitations of the study

1. The study was limited carried out in Pune and its vicinity with sample size of

100

2. Time was a constraint in study as only 50 day allotted.

3. The information gathered was based on customers’ response to questionnaire.

Even then a genuine attempt has been made to get correct data from them.

4. Sample drawn need not be true representative and may have led to same

Sampling error.

5. Financial factors are not considered.

6. Suggestions are not verified.

15

1.6 Chapter Scheme

Chapter 1:-- The first chapter is about the introduction to the study in which it defines

methodology, objectives of the study, scope and limitation to the study, importance of

the study etc.

Chapter 2:-- The next chapter is about the Profile of the Organization in which about the ICICI

direct.com., History of the ICICI bank, Product’s and services of the ICICI direct.com.,

Stock idea and research product, market share of the ICICI bank etc.

Chapter 3:-- Theoretical background consists of the customer satisfaction, and what customer expect

from the organization and customer satisfaction management process etc.

Chapter 4:-- This chapter consists of Data collection and Interpretation. The data interpretation is

done by the help of questionnaire filled from the existing customers.

Chapter 5:-- This chapter is of the findings and suggestions. The suggestions are on the basis of

the survey done by the researcher.

Chapter 6:-- Annexure

Chapter 7:-- Bibliography

16

Organization Profile

Home Page of ICICI Direct.com

Home Site map Careers Hassle free investing Login

17

Trading News Market Commodity Derivatives Charts ResearchMutual funds

Personal finance

Customer service

2.1 Introduction

ICICI direct is product of ICICI securities Ltd. Trading with ICICI direct.com is a fast, easy transparent and hassle free way to trade in shares ICICI direct offers to the customer a wide choice of product for investing in the stock market It also allows the customer to invest in postal saving, Mutual fund and other financial product ICICI direct offers to the customer a unique 3 in 1 account.

Convenience: -

The 3 in1 accounts integrate banking broking and demat account.

When customer place a buy or sell order with ICICI direct the system checks the fund and shares available in customer bank and demat account respectively and execute the trade on exchange online the bank and demat account is automatically debited or credited. This enables the customer to trade in shares without going through the hassles of tracking settlement cycle writing cheque and transfer instruction.

Speed: -

Customer can get the latest quotes of scrip’s on ICICI direct.com place an order pronto.

Control: -

With ICICI direct.com customer get an order confirmation instantly. Customer can easily buy or sell the shares in primary and secondary market.

Independence: -

Through ICICI direct.com customer can manage their own demat and bank account directly and indirectly.

Trust: -

ICICI direct.com is part of ICICI group, an organization trusted by millions of Indian.

18

History of ICICI

1955:

The Industrial Credit and Investment Corporation of India Limited (ICICI)

incorporated at the initiative of the World Bank, the Government of India and

representatives of Indian industry, with the objective of creating a development

financial institution for providing medium-term and long-term project financing

to Indian businesses. Mr.A.Ramaswami Mudaliar elected as the first Chairman

of ICICI Limited

ICICI emerges as the major source of foreign currency loans to Indian industry.

Besides funding from the World Bank and other multi-lateral agencies, ICICI

also among the first Indian companies to raise funds from International markets.

1956

ICICI declared its first Dividend at 3.5%.

1958

Mr.G.L.Mehta was appointed the 2nd Chairman of ICICI Ltd.

1960

ICICI building at 163, Back Bay Reclamation was inaugurated.

1961

The first West German loan of DM 5 million from Kredianstalt was obtained by

ICICI.

1967

ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed.

1969

First two regional offices in Calcutta and Madras were opened.

1972

Second entity in India to set-up merchant banking services.

Mr. H. T. Parekh appointed as the third Chairman of ICICI.

1977

19

ICICI sponsors the formation of Housing Development Finance Corporation.

Managed its first equity public issue

1978

`Mr. James Raj appointed as the fourth Chairman of ICICI.

1979

Mr.Siddharth Mehta appointed as the fifth Chairman of ICICI.

1982

Becomes the first ever Indian borrower to raise European Currency Units.

ICICI commences leasing business.

1984

Mr. S. Nadkarni appointed as the sixth Chairman of ICICI.

1985

Mr.N.Vaghul appointed as the seventh Chairman and Managing Director of

ICICI.

1986:

ICICI first Indian Institution to receive ADB Loans. First public issue by

an Indian entity in the Swiss Capital Markets.

ICICI along with UTI sets up Credit Rating Information Services of India

Limited, (CRISIL) India's first professional credit rating agency.

ICICI promotes Shipping Credit and Investment Company of India Limited.

(SCICI)

The Corporation made a public issue of Swiss Franc 75 million in Switzerland,

the first public issue by any Indian equity in the Swiss Capital Market.

1987

ICICI signed a loan agreement for Sterling Pound 10 million with

Commonwealth Development Corporation (CDC), the first loan by CDC for

financing projects in India.

1988

ICICI promotes TDICI - India's first venture capital company.

20

1993

ICICI sets-up ICICI Securities and Finance Company Limited in joint

venture with J. P. Morgan.

ICICI sets up ICICI Asset Management Company.

1994

ICICI sets up ICICI Bank.

1996

ICICI becomes the first company in the Indian financial sector to raise GDR.

ICICI announces merger with SCICI.

Mr.K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd

1997

ICICI was the first intermediary to move away from single prime rate to three-

tier prime rates structure and introduced yield-curve based pricing.

The name "The Industrial Credit and Investment Corporation of India Limited”

was changed to "ICICI Limited".

ICICI announces takeover of ITC Classic Finance.

1998

Introduced the new logo symbolizing a common corporate identity for the ICICI

Group.

ICICI announces takeover of Anagram Finance.

1999

ICICI launches retail finance - car loans, house loans and loans for consumer

durables.

ICICI becomes the first Indian Company to list on the NYSE through an

issue of American Depositary Shares.

21

2000

ICICI Bank becomes the first commercial bank from India to list its stock

on NYSE.

ICICI Bank announces merger with Bank of Madura.

2001

The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with

ICICI Bank.

2002

Moody’s' assign higher than sovereign rating to ICICI.

Merger of ICICI Limited, ICICI Capital Services Ltd and ICICI Personal

Financial Services Limited with ICICI Bank.

22

ICICI Securities Ltd branches

Corporate office: -

ICICI Securities Ltd Stanrose House, Appasaheb Marathe Marg, Prabhadevi Mumbai-

400025

REGION ADDRESS

AhmedabadICICI Bank ltd, shop No 6, sumComplex c6 road near stadium circle,Ahmedabad.38009

Ban galoreICICI Bank ltd, 73/1 KrishnaGround Floor, infantry road Ban galore

BarodaICICI Bank ltd, regional office Landmark bldg Racecourse circle gotri Road, Alkapuri Baroda-390007

BhubaneshwarICICI Web Trade Ltd, 99 Janpath

Bhubaneshwar Orissa.

ChandigrahICICI Bank Ltd, sco 181/182 1st floor Sector 9-C Chandigrah-160017.

ChennaiICICI Center, Wellington plaza, shop No 42 Ground Floor, 90 Anna Salai Chennai- 600002.

GoaICICI Bank Ltd Regional office Rizvi Towers, 18- June Road, saint innex Goa -403001.

HyderabadICICI Bank Ltd, 2nd Nerrla House No-4, Nagargun Hills, Punjagutta Hyderabad -500082

New DelhiICICI Bank Ltd, Regional Office 114- 115 Arunachal Bldg, Barakhamba Road, Connaught Place N Delhi- 110001.

NagpurICICI Bank Ltd, GR. Floor Near Mawah Petrol Pump, Law College Square, West High Court Road, Nagpur- 44010.

PuneICICI Bank Ltd, Regional Office A-Segrilla Garden, 4th Floor Bund Garden, Pune-411001.

23

Organization Chart

PM – Product ManagerRPM – Regional Product ManagerSM- Segment ManagerAUM- assistant Unit ManagerAgents

Important features of each page

24

Home Page

Market Snapshot:-

Update before market hours 09:30 am gives a brief snap shot on how the markets

are likely to open today

Pick of the Week: -

Update every Saturday there are 4 pick of the week featured in a month.Pick of

week features fundamental stock with a top line growth of 35% the invvestment

time frame is 6-9 month and the target price is also mentioned

ICICI Direct sector watch:

Provides with an outlook on 16 sectors and the stocks covered carry a particular

weight age based on their likely performance in the future.

Stock on the move:

Every fortnight stock on the move will feature 3 stocks which are likely to show

significant up move (5%-7%) in the next 15 days due to change in trade setiment.

This could be due fundamental changes within the company forthcoming

announcement or for purely technical reason

Features:

Is a write up on the latest forth-coming IPO issue along with the details of the issue like

price band and minimum subscription quantity.

Expert speak:

Ask the fund manager is an interview with the details of the issue like price band and

minimum subscription quantity

25

Trading page:

Includes products like, Equity, Derivatives (Futures and option), Mutual Fund

(19AMCs) postal savings (NSE/KVP), IPO, Insurance (General/Life ).Special

l product offered by ICICI Direct.com

Cash Trading :

Customer can trade buy and sell on NSE or BSE.

Margin:

Customer can do intra day trading like buying or short selling in 131 stocks.

Margin plus:

Under margin plus customer can do intra day trading up to 20 times there

available limit 131 stocks.

BTST:

(Buy today sells tomorrow) Through this option customer can buy shares today

and sell tomorrow if prices are in favor of the customer before the shares comes to

there demat account in 345 stocks

Shares as margin:

Customer can deposit their shares and pledge them online to create a limit which

customer can use as I nitial margin to trade in futures and option there are 479

shares available under shares as margin.

Mutual Fund:

Customer can purchase, redeem, switch and invest in systematic investment plan,

customer can choose from 19 AMCs and also view their unit holding and NAV online

Postal saving:

Customer can invest 8% Govt. of India Bonds (2003) National Saving Certificate

(Rate of Interest) tenure 72 month. Kisan Vikas Patra (Rate of Interest 7.40% pa)

tenure 103 month.

IPO:

Customer can apply for latest IPO online.

26

Insurance:

Customer can buy general insurance from ICICI Lombard and Life Insurance from

ICICI Prudential online through ICICI Direct.com.

News Page:

Gives the latest and breaking news to the customer from CNBC and Money Control.

Market Page:

Provides with top gainers, top losers, volume topers, Nifty and Sensex weight age.

Derivatives Trading:

It provides the derivatives snap shot and derivatives strategy for the day, which is

updated before market hour it tells to customer what they could possibly buy in the

Futures and Option segment today.

Chart Page:

It locates features on interactive charting with advanced indicators called direct

technical chart.

Research page:

Has a features like ‘stock screener’ It helps the customer to identify stocks that meet

there specific criteria company snap shot view on over 5000 companies.

Mutual Fund Page:

It helps to the customer with basic fund finder, advanced fund finder, compares funds

and NAV along with MF review of latest fund being offered.

Personal Finance:

It provides tools with customer can use for there Investment planning, Retirement

planning, tax and financial management.

Customer service page:

This page gives service to the customer related to online share trading.

Advantages of ICICIdirect.com

ICICIdirect.com offers to you a unique 3-in-1 account.

27

Banking + Broking + Demat

A unique 3-in-1 account enables you to trade in shares, mutual

funds, postal savings, bonds without filling lengthily forms & doing

paperwork’s.

Therefore, financial transaction done on ICICIdirect.com is paperless,

convenient, fast & hassle free.

ICICDirect.com HDFCSec Kotakstreet Sharekhan IndiaBulls MotilalOswal 5paisaAccount opening fees

750 700 550 750 500 500 675

28

Recurring fees for trading account

0 0 600 375

Demat AMCs

500 500 360 300 0 600 250

Demat charges

Inclusive N 15 0

Cash brokerages

0.75-0.3 0.5 0.59 0.5 0.5 40p 5p

BTST brokerage

Same as above 0.5 0.5 40p 50p

Margin Brokerage

0.10-0.03 0.15 0.1 0.1 15p 15

Derivatives brokerage

0.10-0.03 0.15 0.1 0.4 10p

Commodity Brokerage

0.4 50p

Product offeredCash Y Y Y Y Y Y YBTST Y-Selective N Y Y Y Y YSPOT Y-Selective N Y N Y N YFunded Margin

Y Y N N Y N N

Margin Y Y Y Y Y Y YDerivatives Y Y N Y Y Y YCommodities Y N N N Y N YIPO Y Y Y Y N N YMutual Fund

Y N Y N N N Y

Small Saving Y N N N N N YInsurance Y N N N N N YGOI Bonds N Y N N NCallNTrade Y Y Y Y Y

Compare to the others

AMC: - Account maintaining ChargesBTST: - Buy today sells tomorrowIPO: - Initial public offersGOI: - Government of India

2.2 Products and Services

29

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

allows you to invest in Shares, Mutual funds, Derivatives (Futures and Options) and

other financial products. Simply put we offer you a product for every investment need

of yours.

1. TRADING IN SHARES:

ICICIdirect.com offers you various options while trading in shares.

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

the intention of taking delivery of shares or monies.

Margin 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.

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.

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.

BTST : Buy Today Sell Tomorrow (BTST) is a facility that allows you to sell shares

even on 1st and 2nd day after the buy order date, without you having to wait for the

receipt of shares into your demat account.

30

CallNTrade®: CallNTrade 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.

Trading on NSE/BSE: Through ICICIdirect.com, you can trade on NSE as well as

BSE.

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.

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.

2. TRADE IN DERIVATIVES:

FUTURES:

Through ICICIdirect.com, you can now trade in index and stock futures on the NSE.

In futures trading, you take buy/sell positions in index or stock(s) contracts having a

longer contract period of up to 3 months.

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

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

a sell position), you make a profit.

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

been enabled for futures trading.

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

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

UNIVERSITY on the HOME PAGE is a comprehensive guide on futures and options

trading.

31

OPTIONS

An option is a contract, which gives the buyer the right to buy or sell shares at a

specific price, on or before a specific date. For this, the buyer has to pay to the seller

some money, which is called premium. There is no obligation on the buyer to

complete the transaction if the price is not favorable to him.

To take the buy/sell position on index/stock options, you have to place certain % of

order value as margin. With options trading, you can leverage on your trading limit by

taking buy/sell positions much more than what you could have taken in cash segment.

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

Underlying Asset at the specified strike price by paying a premium whereas the Seller

of the Call has the obligation of selling the Underlying Asset at the specified Strike

price.

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

Asset at the specified strike price by paying a premium whereas the Seller of the Put

has the obligation of buying the Underlying Asset at the specified Strike price.

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

take advantage of more trading opportunities.

3. INVESTING IN MUTUAL FUND’S:

ICICIdirect.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 ICICIdirect.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 Vysya

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.

32

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.

ICICIdirect.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 Vysya 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, ICICIdirect.com

offers faster liquidity. You can redeem the mutual fund units through ICICIdirect.com.

The money will be credited to your bank account automatically 3 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.

4. IPOs AND BOND’S ONLINE:

33

You could also invest in Initial Public Offers (IPO’s) and Bonds online without going

through the hassles of filling ANY application form/ paperwork.

Get in-depth analyses of new IPO’s 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.

5. Content Features:

There are a host of features on ICICIdirect.com that shall help you make informed

investment decisions. We provide you with the indices of major world markets, nifty

futures and ADR prices of Indian scrip’s. Get daily share prices of all scrip’s, monthly

and yearly high/lows etc through Market Watch.

Get breaking news from CNBC and Reuters. Catch a glimpse of News Headlines

through our scrolling Direct News Headlines. Get a snapshot of the latest

developments in the markets through the day using Market Commentary. You can get

weekly snapshots also. Use Pick of the week which focuses on fundamental stocks

with sound prospects.

Catch interviews, reactions and comments from industry leaders with CEO Call. Track

the movement of leading scrip’s within a sector across 12 sectors using

Market@Desktop. Equip yourself with our barometers. Market Barometer gives you

in-depth information of the weightages of shares on Nifty and Sensex. Get a glimpse

of the performance of various industry sectors through Industry Barometer.

Direct Technical Charts offer interactive charting with advanced indicators. Get a

bird’s eye views of over 5000 companies at a single click using Company Snapshot.

Glance through analyst recommendations using Multex Global Estimates.

In case, you are not too comfortable with share trading, try our Learning Centre,

which is a tutorial on investments and My Research that helps you to research a stock

better.

34

6. Personal Finance:

Use our Personal Finance section and get hold of tools that can help you plan your

investments, retirement, tax etc. Analyze your risk profile through the Risk Analyzer

and get a suitable investment portfolio plan using Asset Allocator.

7. Customer Service Features:

With 'ICICI direct Customer Tools & Updates' you can trouble shoot all your

problems online. Address your trading queries on-line through "Easy Mail". You can

view and change your profile or password on-line through General Profile option.

Get details of ICICI Centers, our sales and service offices, across India through branch

locator. View your Account Statement and Bill Summary of your transactions online

using bills & accounts.

View your Digital Contract Notes instantly. View various charges through the Fee

Schedule option

Give your feedback or viewpoint through the Viewpoint online.

Enroll yourself for various ICICI direct Workshops through Register for Customer Sessions.

35

BROKERAGE STRUCTURE OF THE ICICI direct.com

PRODUCTS MINIMUM ORDER VALUE

BROKERAGE MINIMUM BROKERAGE

CASH TRADING

Rs.500 0.70% Transaction value + STT+ service tax.

Rs.25

MARGIN/ MARGIN PLUS TRADING

Rs.500 0.10% Transaction value + STT + Service tax on both sides.

Rs.15

BTST Rs.500 0.70% Rs.25

SPOT TRADING

Rs.500 1% Transaction value + STT +Service tax

Rs.25

FUTURE & OPTIONS

0.05% Transaction value + STT + Service tax

MUTUAL FUND’S

Rs.5000 No. Brokerage

POSTAL SAVING & BOND’S

Rs.1000 No. Brokerage

IPO Depends on lot size of stock.

No. Brokerage

36

3.1 Customer satisfaction

“Satisfaction level is the level of persons felt state resulting from comparing products

perceived performance (or outcome) in relation to the person’s expectation.”

Thus satisfaction level is function of difference between perceived performance

& expectation. A customer could experience one of three broad levels of satisfaction:

If the performance falls short of expectations, the customer is

dissatisfied.

If the performance matches to the expectations of the customer, then the

customer is satisfied.

If the performance exceeds the expectations of the customer, the

customer is highly satisfied, pleased or delighted.

But how do the customer expectations? Expectations are formed on the basis of

the buyers past buying experience statements made by the friends & associates, &

marketer & competitor information & promises. If marketers raise the expectations too

high the buyer is likely to be disappointed.

Some of the today’s most successful companies are raising expectation &

delivering the performance. The companies are aiming high because customers who are

just satisfied will still find it easy to switch supplier when a better offer comes along.

The fact is that high satisfaction or delight creates an emotional affinity with the brand,

not just a rational preference, and this creates customers high loyalty.

Companies seeking to win in today’s markets must track their customers expectations

perceived company performance, and customer satisfaction. They need to monitor this

for the competitors as well. Companies’ that achieve high customer satisfaction ratings

make sure that their target market knows it. The customer centered firms seeks to create

high customer satisfaction it is not out to maximize customer satisfaction.

37

First they can increase the customer satisfaction by lowering the price or

increasing its services, but this may result in low profits.

Second, the company might be able to increase its profitability in the other

ways, such as by improving its manufacturing or investing more in R&D.

Third; the company has many stakeholders including employees, dealers,

suppliers & stockholders. Spending more to increase the customer satisfaction

would divert funds from increasing the satisfaction of the other “partners”.

Ultimately, the company must operate on the philosophy that it is trying to

delivery a high level of customer satisfaction level subject to delivering at least

acceptable levels of the satisfaction to the other stockholders within the

constraints of its total resources.

3.2 Method’s of tracking and measuring customer satisfaction

Complaint and suggestions system

A customer centered organization would make it easy for its a customer to deliver

suggestions and complaints. Many restaurants and hotels provide forms for guests to

report likes and dislikes. A hospital could place suggestion boxes in the corridors,

supply comment cards to the exiting patients, and hire patient advocate to handle

patient grievances. Some customer centered companies – P&G, General Electric, and

Whirlpool – establish “customer hot lines” with a toll free 800 telephone numbers to

maximize the ease with which the customers can inquire, make suggestions, or

complain. These information flows provide these companies with many good ideas and

enable them to act more rapidly to resolve the problems.

38

3.3 Customer satisfaction surveys

A company must not conclude that it can get a full picture of customer

satisfaction & dissatisfaction by simply a complaint & suggestion system. A study

shows that customers are dissatisfied with one out of the four and less than 5% of the

dissatisfied customers will complain. Customers may feel that their complaints are

minor, or that they will be made to be stupid, or that no remedy will be offered. Most

customers will buy less or switch the suppliers rather than complain. The result is that

company has needlessly lost the customer.

Therefore, companies cannot use the complaint levels as a measure of customer

satisfaction. Responsive companies obtain a direct measure of customer satisfaction by

conducting periodic surveys. They send questionnaires or make telephone calls to

random sample of their recent customer to find out how they feel about various aspects

of the companies performance.

Customer’s satisfaction can be measured in number of ways. It can be measured

directly by asking: “indicate how satisfied you are with the service X on the following

scale: highly satisfied” (directly reported satisfaction). Respondents can be asked as

well to rate how much they are expected of as certain attribute and also how much they

are experienced (derived satisfaction). Still another method is to ask respondents to list

any problems they have had with the offer and to list any improvements they could

suggest (problem analysis). Finally, companies could respondents to rate various

elements of the offer in the terms of the importance of the each element and how well

the organization performed each element (importance/ performance ratings).this last

method helps the company to know if it is underperforming on important elements and

over performing on relatively unimportant elements.

While, collecting customer satisfaction data, it would also be useful to ask

additional questions to measure the customers repurchase intention; this will normally

be high if the customer satisfaction is high.

Ghost shopping

Another useful way to gather a picture of customer satisfaction is to hire the

persons to pose as the potential buyers to report their findings on strong and weak

points they experienced in buying the companies & competitors product. These ghost

39

shoppers can even pose certain problems to test whether to companies sales personnel

handle the situation well. Thus a ghost shopper can complain about a restaurants food

to test how the restaurant handles this complaint. Not only should companies hire ghost

shoppers, but managers themselves should leave their office to time to time, enter

company & competitor sales situation where they are unknown and experienced

firsthand the treatment they revive as the “customers”

Lost Customer Analysis

Companies should contact customers who have stopped buying have switched

to another supplier to learn why this is happened. When IBM loses a customer, they

mount a thorough effort to learn where they failed – is their price too high, their service

deficient, their products unreliable, and so on. Not only is it important to conduct exit

interviews but also to monitor the customer loss rate which, if it is increasing, clearly

indicates that the company is failing to satisfy its customers.

Some cautions in measuring Customer Satisfaction

When customers rate their satisfaction with an element of the company’s performance,

say delivery, we need to recognize that customers will vary in how they define good

delivery; it could mean early delivery, on-time delivery, order completeness, and so on.

Yet if the company had to spell out every element in detail, customers would face a

huge questionnaire. We must also recognize that two customers can report being

“highly satisfied” for a different reasons. One may be easily satisfied most of the times

and the other might be hard to please on this occasion.

Companies should also note that managers and salespersons can manipulate their rating

on the customers on customer satisfaction. They can be especially nice to customers

just before the survey. They can also try to exclude unhappy customers from the

included in the survey.

One of the danger is that if the customer know that the company will go out of its way

to please the customers, some customers may want to express high dissatisfaction(even

if satisfied) in order to receive more concessions.

40

3.4 Investing!! What's that?

Judging by the fact that you've taken the trouble to navigate to the Learning

Center of ICICIDirect, our guess is that you don't need much convincing about the

wisdom of investing. However, we hope that your quest for knowledge/information

about the art/science of investing ends here. Sink in. Knowledge is power. It is common

knowledge that money has to be invested wisely. If you are a novice at investing, terms

such as stocks, bonds, badla, undha badla, yield, P/E ratio may sound Greek and Latin.

Relax. It takes years to understand the art of investing. You're not alone in the quest to

crack the jargon. To start with, take your investment decisions with as many facts as

you can assimilate. But, understand that you can never know everything. Learning to

live with the anxiety of the unknown is part of investing. Being enthusiastic about

getting started is the first step, though daunting at the first instance. That's why our

investment course begins with a dose of encouragement: With enough time and a little

discipline, you are all but guaranteed to make the right moves in the market. Patience

and the willingness to pepper your savings across a portfolio of securities tailored to

suit your age and risk profile will propel your revenues at the same time cushion you

against any major losses. Investing is not about putting all your money into the "Next

Infosys," hoping to make a killing. Investing isn't gambling or speculation; it's about

taking reasonable risks to reap steady rewards. Investing is a method of purchasing

assets in order to gain profit in the form of reasonably predictable income (dividends,

interest, or rentals) and appreciation over the long term.

Why should you invest?

Simply put, you should invest so that your money grows and shields you against

rising inflation. The rate of return on investments should be greater than the rate of

inflation, leaving you with a nice surplus over a period of time. Whether your money is

invested in stocks, bonds, mutual funds or certificates of deposit (CD), the end result is

to create wealth for retirement, marriage, college fees, vacations, better standard of

living or to just pass on the money to the next generation. Also, it's exciting to review

41

your investment returns and to see how they are accumulating at a faster rate than your

salary.

When to Invest?

The sooner the better. By investing into the market right away you allow your

investments more time to grow, whereby the concept of compounding interest swells

your income by accumulating your earnings and dividends. Considering the

unpredictability of the markets, research and history indicates these three golden rules

for all investors 1. Invest early 2. Invest regularly 3. Invest for long term and not short

term while it’s tempting to wait for the “best time” to invest, especially in a rising

market, remember that the risk of waiting may be much greater than the potential

rewards of participating. Trust in the power of compounding is growth via reinvestment

of returns earned on your savings. Compounding has a snowballing effect because you

earn income not only on the original investment but also on the reinvestment of

dividend/interest accumulated over the years. The power of compounding is one of the

most compelling reasons for investing as soon as possible. The earlier you start

investing and continue to do so consistently the more money you will make. The longer

you leave your money invested and the higher the interest rates, the faster your money

will grow. That's why stocks are the best long-term investment tool. The general

upward momentum of the economy mitigates the stock market volatility and the risk of

losses. That’s the reasoning behind investing for long term rather than short term.

How much money do I need to invest?

There is no statutory amount that an investor needs to invest in order to generate

adequate returns from his savings. The amount that you invest will eventually depend

on factors such as: Your risk profile Your Time horizon Savings made All the above

three factors will be discussed in brief in the latter part of the course.

What can you invest in?

42

The investing options are many, to name a few Stocks Bonds Mutual funds Fixed

deposits Others Read about them in detail in module 2 of the course.

What are options?

Some people remain puzzled by options. The truth is that most people have been

using options for some time, because options are built into everything from mortgages

to insurance. An option is a contract, which gives the buyer the right, but not the

obligation to buy or sell shares of the underlying security at a specific price on or

before a specific date. ‘Option’, as the word suggests, is a choice given to the investor

to either honour the contract; or if he chooses not to walk away from the contract. To

begin, there are two kinds of options: Call Options and Put Options. A Call Option is

an option to buy a stock at a specific price on or before a certain date. In this way, Call

options are like security deposits. If, for example, you wanted to rent a certain property,

and left a security deposit for it, the money would be used to insure that you could, in

fact, rent that property at the price agreed upon when you returned. If you never

returned, you would give up your security deposit, but you would have no other

liability. Call options usually increase in value as the value of the underlying

instrument rises. When you buy a Call option, the price you pay for it, called the option

premium, secures your right to buy that certain stock at a specified price called the

strike price. If you decide not to use the option to buy the stock, and you are not

obligated to, your only cost is the option premium. Put Options are options to sell a

stock at a specific price on or before a certain date. In this way, Put options are like

insurance policies If you buy a new car, and then buy auto insurance on the car, you

pay a premium and are, hence, protected if the asset is damaged in an accident. If this

happens, you can use your policy you pay a premium and are, hence, protected if the

asset is damaged in an accident. If this happens, you can use your policy

The Mutual Fund Industry

The genesis of the mutual fund industry in India can be traced back to 1964 with

the setting up of the Unit Trust of India (UTI) by the Government of India. Since then

UTI has grown to be a dominant player in the industry. UTI is governed by a special

legislation, the Unit Trust of India Act, 1963.

The industry was opened up for wider participation in 1987 when public sector banks

and insurance companies were permitted to set up mutual funds. Since then, 6 public

43

sector banks have set up mutual funds. Also the two Insurance companies LIC and GIC

have established mutual funds. Securities Exchange Board of India (SEBI) formulated

the Mutual Fund (Regulation) 1993, which for the first time established a

comprehensive regulatory framework for the mutual fund industry. Since then several

mutual funds have been set up by the private and joint sectors.

Growth of Mutual Funds

The Indian Mutual fund industry has passed through three phases. The first phase

was between 1964 and 1987 when Unit Trust of India was the only player. By the end

of 1988, UTI had total asset of Rs 6,700 crores. The second phase was between 1987

and 1993 during which period 8 funds were established (6 by banks and one each by

LIC and GIC).This resulted in the total assets under management to grow to Rs 61,028

crores at the end of 1994 and the number of schemes were 167.

The third phase began with the entry of private and foreign sectors in the Mutual fund

industry in 1993. Several private sectors Mutual Funds were launched in 1993 and

1994. The share of the private players has risen rapidly since then. Currently there are

34 Mutual Fund organizations in India. Kothari Pioneer Mutual fund was the first fund

to be established by the private sector in association with a foreign fund.

This signaled a growth phase in the industry and at the end of financial year 2000, 32

funds were functioning with Rs.1, 13,005 crores as total assets under management. As

on August end 2000, there were 33 funds with 391 schemes and assets under

management with Rs.1, 02,849 crores. The Securities and Exchange Board of India

(SEBI) came out with comprehensive regulation in 1993 which defined the structure of

Mutual Fund and Asset Management Companies for the first time

3.5 Indian Stock Market Overview

The Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd.

(NSE) are the two primary exchanges in India. In addition, there are 22 regional stock

exchanges in however, the BSE and NSE have established themselves as the two

leading exchange and account for about 80 percent of the equity volume trade in India

The NSE and BSE are equal in size in terms of daily traded volume The average daily

turnover at the exchanges has increased from 851 crore in 1997-98 to Rs.1284 crore in

1998-99 and further to Rs.2273 crore in 1999-2000 (April- August1999). NSE has

44

around 1500 shares listed with a total market capitalization of around Rs.921500 crore

(Rs9215-Bln) The BSE has over 6000stock listed and has market capitalization of

around Rs.968000 crore (Rs.9680-Bln) most key stocks are traded on both the

exchanges and hence the investor could buy them on either exchanges. Both exchanges

have different settlement cycle, which allows investor to shift their position on the

bourses. The primary index of BSE is BSE Sensex comprising 30 stocks NSE has the

S&P NSE 50index (Nifty), which consists of fifty stocks. The BSE Sensex is the older

and more widely followed index. Both these indices are calculated on the basis of

market capitalization and contained the heavily traded shares from key sector. The

markets are closed on Saturday and Sunday. Both exchanges have switched over from

the open outcry trading system to a fully automated computerized mode of trading

known as BOLT (BSE Online Trading) and NEAT (National Exchange Automated

Trading) system. It facilitates more efficient processing; Automatic Order matching,

faster execution of trades transparency. The scrip’s traded on the BSE have been

classified into ‘A’, ‘B1’,’B2’,’C’,’F’and ‘Z’ groups. The ‘A’ group shares represent

those, which are in the carry forward system (Badla). The ‘F’ group represents the debt

market (Fixed Income Securities) segment. The ‘Z’ group scripts are the blacklisted

companies. The ‘C’ group covers the odd lot securities in ‘A’, ‘B1’ and ‘B2’ groups

and rights renunciation. The key regulator governing stock exchanges, Brokers,

Depositories, Depository participants Mutual Funds, FllS and other participants in

Indian secondary and primary market is the securities and exchange board of India

(SEBI) Ltd.

Bombay Stock Exchange (BSE)

45

The Bombay Stock Exchange Limited

(Formerly, The Stock Exchange, Mumbai; popularly called The Bombay Stock

Exchange, or BSE) is located at Dalal Street, Mumbai. Established in 1875, it is the

oldest stock exchange in Asia. There are around 3,500 Indian companies listed with the

stock exchange, and has a significant trading volume. As of July2005, the market

capitalization of the BSE was about Rs20 trillion (US $ 466 billion). The BSE Sensex

(SENSITIVE INDEX), also called the BSE 30, is a widely used market index in India

and Asia. As of 2005, it is among the 5 biggest stock exchanges in the world in terms

of transactions volume. Along with the NSE, the companies listed on the BSE have a

combined market capitalization of US$ 125.5 billion.

History

An informal group of 22 stockbrokers began trading under a banyan tree opposite

the Town Hall of Bombay from the mid-1850s, each investing a (then) princely amount

of Rupee 1. This banyan tree still stands in the Horniman Circle Park, Mumbai. The

informal group of stockbrokers organized themselves as the The Native Share and

Stockbrokers Association which, in 1875, was formally organized as the Bombay Stock

Exchange (BSE).

46

In January 1899, the stock exchange moved into the Brokers’ Hall after it was

inaugurated by James M Maclean. After the First World War, the BSE was shifted to

an old building near the Town Hall. In 1928, the plot of land on which the BSE

building now stands (at the intersection of Dalal Street, Bombay Samachar Marg and

Hammam Street in downtown Mumbai) was acquired, and a building was constructed

and occupied in 1930.

Premchand Roychand was a leading stockbroker of that time, and he assisted in setting

out traditions, conventions, and procedures for the trading of stocks at Bombay Stock

Exchange and they are still being followed.

Several stock broking firms in Mumbai were family run enterprises, and were named

after the heads of the family. The following is the list of some of the initial members of

the exchange, and who are still running their respective business.

D.S. Prabhudas & Company (now known as DSP, and a joint venture partner

with Merrill Lynch)

Jamnadas Morarjee (now known as JM)

Champaklal Devidas (now called Cifco Finance)

Brijmohan Laxminarayan

In 1956, the Government of India recognized the Bombay Stock Exchange as the first

stock exchange in the country under the Securities Contracts (Regulation) Act.

The BSE moved into its current premises - the Phiroze Jeejeebhoy Towers - in

1980. The Bombay Stock Exchange followed the familiar outcry system for stock

trading up until 1995, when it was replaced by an electronic (e-Trading) system. In

2005, the status of the exchange changed from an Association of Persons (AoP) to a

full fledged corporation under the BSE (Corporatization and Demutualization) Scheme,

2005 (and its name was changed to The Bombay Stock Exchange Limited).

National Stock Exchange Ltd

47

The National Stock Exchange of India Limited has genesis in the report of the High

Powered Study Group on Establishment of New Stock Exchanges, which

recommended promotion of a National Stock Exchange by financial institutions (FIs) to

provide access to investors from all across the country on an equal footing. Based on

the recommendations, NSE was promoted by leading Financial Institutions at the

behest of the Government of India and was incorporated in November 1992 as a tax-

paying company unlike other stock exchanges in the country.

On its recognition as a stock exchange under the Securities Contracts (Regulation) Act,

1956 in April 1993, NSE commenced operations in the Wholesale Debt Market

(WDM) segment in June 1994. The Capital Market (Equities) segment commenced

operations in November 1994 and operations in Derivatives segment commenced in

June 2000.

The capital market of India consists of two kinds

A. Primary Market

B. Secondary Market

Primary Market: -

Primary market is known as new issue market is also called as ‘Public Issue’ in

the primary market new securities are sold or exchanged for cash, credit or other

securities. The new securities can be issued by existing companies are newly floated

companies. The primary market can be defined as, “A market where new securities are

brought and sold for first time.”

It is the market where the capital formation process will take place. The huge amounts

of financial resources are mobilized by the corporate sector through public issue.

Secondary Market: -

Secondary market is an important component of capital market. The stock

exchanges are known as the secondary market. They play an important role in securities

market. In the stock exchanges the Govt securities, Bonds, Investment, Trust

debentures and other instruments are traded. It is a medium of transfer of resources for

the circulated. In the stock securities issued in the primary market markets are bought

and sold. It does not create any financial claim purchases and sales of the existing

48

stocks and bonds occur in this market. Transaction in the secondary market do not

provides fund to the corporate sector. But the strong secondary market movements

create a high demand for new issue market.

Investment

1. Mutual fund:

Mutual fund is one of the innovative banking systems. The mutual fund have been set

up mainly by the subsidiaries of the public sector banks for e.g. SBI, Canara bank,

Punjab national bank, Bank of India, Andhra bank, LIC, GIC also have set up mutual

fund. Till 1986 UTI has monopoly of this business in India. At present the other mutual

fund have also come up in the market. Mutual fund is either open ended or close-ended

financial intermediaries. They procure money selling the units to the investors. They

provide to obtain high return low risks combination fro their indirect holding of equities

and other assets. They can be classified as growth oriented or Income oriented or

income and growth oriented funds.

2. Insurance:

Insurance companies invest the savings of their policyholders. The policyholder will

pay the amount to the insurance is just a contract between two parties. The insurance

company undertakes in consideration of sum money to make good to the loss suffered

by the party against a specified risk. There are two parties in a Insurance contract

(a) Insurer

(b) Insured / Beneficiary

The insurer is known as Insurance Company. The insured means a personal party who

are willing to undertake an arrangement with an insurer. The terms of contract will be

laid down in a document is known as policy. The property, which is insured, is the

subject matter of insurance. The property may be insured against loss arising from

uncertain events.

3. IPO (Initial Public Offer)

A company first sale of stock to the public securities offer in an IPO roufside

49

equity capital and public market for their stock. Investor purchasing stock in

IPO generally must be prepared to accept very large risk for the possibility of

large gains. IPO by investment company (closed and Fund) usually contain

under writing fees, which represent a load to buyers.

4. Bonds: -

Investing in government of India bonds is a risk free investment option available

to the customer. Investment in govt. India bonds offline, would involve filling

physical application forms and writing cheques Customers can invest in corporate

bond, municipal bond and treasury bond.

.

5. Postal Saving: -

National saving certificate and Kisan Vikas Patra have has always been consider as

some of the safer investment option NSC offers interest @8% with no upper

limit for the maximum subscription per year. Also investment in NSC up to 1 lakh

is eligible for tax break nder section 80CCE of Income Tax Act.

6. Derivatives: -

Derivatives have become very important in the field finance. They are very important

financial instrument for risk management as they allow risk and act as form of

insurance. The shift of risk means that each party involved in the contract should be

able to identify all the risk involved before the contract is agreed. It is also important to

remember that derivatives are derived from an underlying asset. This means that risk in

trading derivatives may change depending on what happens to the underlying asset.

A derivative is product whose value is derived from the value of an underlying asset,

index or reference rate. The underlying asset can be equity, forex commodity or any

other asset. For example, if the settlement price of derivatives is based on the stock

50

price of a stock for e.g. infosys, which frequently changes on the daily basis. The

means that derivatives risk and position must be monitored constantly.

What is Dematerialization?

Dematerialization in short called, as ‘demat’ is the process by which an

investor can get physical certificate converted in to electronic form maintained in an

account with the depository participant. The investor can Dematerialize only those

share certificates that are already register in their name and belong to the list of

securities admitted for dematerialization at the depositories.

Depository:

The organization responsible to maintain investor’s securities in the electronic form is

called the depository. In other words, a depository can therefore be conceived of as a

“Bank” for securities. In India there are two such organization viz. NSDL and CDSL.

The depository concept is similar to the banking systems with the exception that bank

handle funds whereas a depository handles securities of the investors. An investor

wishing to utilize the services offered by a depository has to open an account with the

depository through Depository participant.

Depository participant:

The market intermediary through whom the depository services can be availed by the

investors is called a Depository participant (DP). As per SEBI regulation, DP could be

organization involved in the business of providing financial services like bank, brokers,

custodians and financial institution. This system of using the existing distribution

channel (mainly constituting DPs) helps the depository to reach a wide cross section of

investors spread across a large geographical area at a minimum Cost. The admission of

DPs involves a detailed evaluation by the depository of their capability to meet with the

strict service standards and a further evaluation and approval from SEBI. Realizing the

potential, all the custodians in India and a number of banks, financial institution and

major brokers have already joined as DPs to provide services in number of cities.

51

Procedure to dematerialize your share certificate:

Fill up dematerialization request form, which is available with your DP. Submit your

share certificate along with form; (write “surrendered for demat” on the face of the

certificate before submitting it for a demat) Receive credit for the dematerialized shares

into your account within 22 days.

Opening of a demat account through ICICI Direct:

Opening an e invest account with ICICI Direct, will enable you to automatically open a

demat account with ICICI, one of the largest DP in India, thereby avoiding the hassles

of finding an efficient DP. Since the shares to be bought or sold through ICICI Direct

will be only in the demat form, it will avoid the hassles of instructing the brokers to buy

shares only in a demat form. Adding to this, you will not face problems like checking

whether your broker has transferred the shares from his clearing account to your demat

account.

4.1. Table showing bifurcation regarding media from which the

respondents come to know about ICICI direct.com

52

Particular NO of respondent Per

Friends 12 12%

Relatives 26 26%

Agents 56 56%

Advertisements 6 06%

Friends12%

Relatives26%

Agents56%

Advertisements6%

Friends Relatives Agents Advertisements

The above table show 12% respondent come to know about online share trading from

Friends, 26% respondent comes to know from there relatives and 56% respondent

comes to know from the agents as well as 6% respondents come to know from

advertisements about online share trading firm.

4.2. Percentage showing bifurcation of the respondent on the basis the

time from when the customer trading in the ICICIdirect.com.

53

Particular NO of respondent Per

1-3months 20 20%

3-6 months 34 34%

6-9 months 22 22%

9-12 months and before 24 24%

The above table show 12% respondent operate there demat account 1-3 months, 34%

respondent operate there demat account from 3-6 months as well as 22% respondent

operate demat account from 6-9 months and remaining 24% respondent operate there

demat account from 9-12 months.

4.3. Percentage showing bifurcation of respondent on the basis how

does respondent trade in the ICICIdirect.com

54

Particular NO of respondent PerOnline-share trading 94 94%CallNTrade 6 6%

The above table shows 94% respondent trade in the ICICIdirect.com through online-

share trading and remaining 6% respondent trade through CallNTrade.

4.4. Percentage showing bifurcation of respondent regarding which

service of the ICICIdirect.com is mostly attracted.

55

Particular NO of respondent PerFund transfer mechanism 33 33%Brokerage Rates 7 7%Safety & Security 29 29%Online trading 31 31%

Fund transfer mechanism

33%

Brokerage Rates7%

Safety & Security

29%

Online trading31%

The above table show 30% respondent are mostly attracted through Fund Transfer

Mechanism , 6% respondent are mostly attracted through Brokerage Rates and 26%

respondent are mostly attracted through safety & Security as well as 28% respondent

are mostly attracted through online Trading.

4.5. Percentage showing bifurcation of respondent on the basis of

which product does the respondent prefer in investing.

56

Particular No Of respondents Per

Equity 32 32%

IPO’s 8 8%

Mutual Funds 30 30%

Both Equity & Mutual Fund 30 30%

The above table show 32% respondent prefer to invest in equities and 8% respondent

prefer to invest in IPO’s and 30% respondent prefer to invest in Mutual Funds as well

as 30% respondent prefer to invest in both equities and Mutual Funds.

4.6. Percentage showing bifurcation of respondent on the basis which

trading facility the respondent frequently prefer while trading.

Particular NO of respondent PerDelivery Trading 14 14%

57

Day trading 18 18%Margin plus 6 6%BTST 4 4%Cash on Spot 2 2%Both Delivery & Day Trading

56 56%

14%

18%

6%4%2%

56%

Delivery Trading Day trading

Margin plus BTST

Cash on Spot Both Delivery & Day Trading

The above table show 14% respondent prefer Cash or Delivery option while trading

and 18% respondent prefer to Day Trading and 6% respondent prefer Margin plus, 4%

respondent prefer BTST, 2% respondent prefer Cash on Spot as well as 56%

respondent prefer Both Delivery and Cash Trading.

4.7. Percentage showing bifurcation of respondent on the basis

whether respondents were interested in commodity market.

Particular NO of respondent Per

58

Yes 24 24%No 76 76%

The above table shows 24% respondent are interested in commodity market and 76%

respondent are not interested in commodity market because it is newly launched in the

Solapur branch.

4.8. Percentage showing bifurcation of respondent on the basis need of training in the

various products of the ICICI securities Ltd.

Particular NO of respondent PerEquity 6 6%Derivatives 2 2%Mutual Fund 14 14%

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Commodity 8 8%IPO’s 6 6%Both equities and Mutual Fund

16 16%

All 48 48%

Equity6%

Derivatives2%

Mutual Fund14%

Commodity8%

IPO’s6%

Both equities and Mutual

Fund16%

All48%

The above table show 6% respondent need the training in equities, 2% respondent need

the training in derivatives, 14% respondent need the training in Mutual Funds, 8%

respondent need the training in Commodity, 6% respondent need the training in IPO’s,

16% respondent need the training in both equities and mutual Funds and 48%

respondent need the training in All products in ICICIdirect.com.

4.9. Percentage showing bifurcation of respondent on the basis need of

Transact in statement, Demat Statement and Contract Notes

physically.

Particular NO of respondent PerYes 32 32%No 68 68%

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Yes32%

No68%

Yes No

The above table show 32% respondent need the transact in statement, Demat statement,

contract notes physically and 68% don’t need.

4.10. Percentage showing bifurcation of respondent on the basis of

their overall satisfaction level towards the online share trading firm.

Particular NO of respondent PerExcellent 66 66%

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Very Good 14 14%

Good 8 8%Fair 12 12%

The above table show 66% respondent are highly satisfied with there online share firm

and 14% respondent are getting medium level satisfaction remaining 8% respondents

getting average satisfaction and 12% respondent getting less satisfaction from there

online share trading firm.

5.1 FINDINGS OF THE STUDY

1. The researcher found that only very few respondents were come to know from the

advertisement media. This shows that advertisement media is not able to attract to the

potential customers.

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2. The other sources of the trading like CallNTrade and offline trade are not used to trade

frequently by the customers.

3. Mostly customers are attracted to Safety and security and then fund transfer mechanism

and online share trading.

4. Most of the customers tend to invest in the Equities and Mutual Fund.

5. The researcher found that most of the customer’s trade through Cash (delivery) and

Day trading, also BTST and Margin are popular.

6. Researcher also found that many customers were attracting towards the Commodity

market as it was launch in Pune branch.

7. As the trading on ICICI Securities Ltd. is new thing to customer therefore training is

needed for mostly for all products.

8. The most of the customers don’t need the physical transact in statement, demat

statement, contract notes etc, Because ICICI direct.com is facilitates online trading &

holdings for the scrip’s.

9. The last but not least finding of the study was the most of the customers are fully

satisfied with services of the ICICI direct.com and rests are partly satisfied.

5.2 SUGGESTIONS TO THE COMPANY

A. Advertisements1. The company should give more emphasis on advertisement media to make

aware to customers about the ICICI direct.com through regular pamphlet

distribution in local news paper and TV advertisement.

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2. The company should motivate the investors to invest in other sources of

investing such as insurance, postal saving and commodity market etc.

B. Awareness & Training to the customers

1. The company should increase the awareness regarding the brokerage rates why

they are high and how, because the other service providers are offering this on

cheaper rates.

2. The company should give training to the customers regarding to how to trade on

the icicidirect.com for every product as per it is needed.

3. The company should increase awareness about the various other type of the

trading like spot trading, margin trading.

C. Suggestion from Customers

1. The company should offer the Transact in statement, Demat statement and

Contract notes physically to the customers.

2. Organization should concentrate on Govt. employee to attract them towards

online share trading by the attractive scheme.

5.3 Conclusion

Though share trading is not a cup of tea of everyone, common man can also earn

money through it. Customer wants to invest their money, but they are confused whether

to invest or not. They don’t have full knowledge about the stock market.

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Customer can buy and sell securities on the stock exchanges, through online

automated order processing system provided by the company. Customer can log on at

any time, during or after trade hour and place an order. The online investment option of

ICICI Direct is safest way to the investor to invest in Mutual Fund, IPO, Bonds and

Postal Saving.

Mostly small investors are not satisfied with the brokerage rates of the ICICI

direct.com. Many customers are now attracting towards the other investment like

commodity market.

Organization has to concentrate on separate office and other infrastructural

facilities. Organization has to make more advertisement through pamphlet distribution

in local newspaper and TV advertisement through the local channel Organization has

to organize such session on stock market update, which helps to increase customer

awareness about stock market.

ANNEXUREQUESTIONNAIRE FOR DEMAT A/C HOLDERS

Personal Details:

Name __________________________________________________

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Contact No.______________________________________________

Email Id. ________________________________________________

Occupation_______________________________________________

1. Private employee [ ] 2. Govt. employee [ ]

3. Business men [ ] 4. Others [ ]

1. How do you come to know about ICICI direct.com?

a) Friends [ ] b) Relatives [ ]

c) Agents [ ] d) Paper Advertisement [ ]

2. From how many months you are trading with ICICI Direct.com.

a) 1 – 3 [ ] b) 3 – 6 [ ]

c) 6 – 9 [ ] d) 9 – 12 [ ]

3. How do you trade in ICICIDirect.com?

a) On line trading [ ] b) CallNTrade [ ]

4. Which Service given by the ICICI direct.com is most attracted by you?

a) Fund Transfers Mechanism [ ]

b) Brokerage rates [ ]

c) Safety and Security [ ]

d) On line trading [ ]

5. Which Product do you prefer to invest in ICICI Direct.com?

a) Equities [ ]

b) IPO’S [ ]

c) Mutual Funds [ ]

d) Others (Postal Savings, Insurance, Commodities, etc.) [ ]

6. Which Trading facility do you prefer frequently while trading on ICICI

Direct.com?

a) Delivery Trading [ ] b) Day Trading [ ]

c) Margin Plus [ ] d) BTST [ ]

e) Cash on Spot [ ]

7. Are you interested in Commodity Market?

a) Yes [ ] b) No [ ]

8. Do you need training?

a) Equity Market Yes [ ] No [ ]

b) Derivative Market Yes [ ] No [ ]

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c) Mutual Fund Yes [ ] No [ ]

d) Commodity Market Yes [ ] No [ ]

e) IPO Yes [ ] No [ ]

f) Other’s (Postal Savings, Insurance) Yes [ ] No [ ]

9. Do you want transact – in – statement, Demat statement, Contract Notes

Physically?

a) Yes [ ] b) No [ ]

10. What is your Opinion about the Services given by ICICI securities Ltd.?

a) Excellent [ ] b) Very Good [ ]

c) Good [ ] d) Fair [ ]

11. Any Suggestions regarding Services…….

_________________________________________________________

_________________________________________________________

BIBLIOGRAPHY

1. Philip Kotler-7th edition “MARKETING MANAGEMENT”

2. Ramesh Babu- “INDIAN FINANCIAL SYSTEM”

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3. ICICI direct.com- website of the company

4. www.google.co.in

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