A

PROJECT REPORT
ON
A STUDY ON CUSTOMER SATISFACTION
WITH RESPECT TO
ICICI direct.com
SUBMITTED TO UNIVERSITY OF PUNE
IN 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

BRACTSs
VISHWAKARMA INSTITUTE OF MANAGEMENT
KONDHWA PUNE- 411014

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

3.1 - 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

2.1 - About ICICI direct.com

2.2 - Products and Services

5.1 Findings

5.2 Suggestions
5.3 Conclusion

INDEX

Chapter

particular

Chapter I

Introduction to the study

Chapter II

Profile of the organization

Chapter III Theoretical background

Page
nos.
1
8
28

Chapter IV Data Interpretation and

Collection

44

Chapter V

54

Findings and Suggestions,

Conclusion

Chapter VI Annexure

57

Chapter VII Bibliography

59

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 todays Hitech business era ICICI direct,com. provides the online share trading and holding of the
scrips.

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 students 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 todays cutthroat competition to increase the market share there is
need to satisfy the customers needs and wants. For this purpose all organizations are
required to conduct research work to understand customers 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, Products 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

Trading News Market Commodity Derivatives Charts Research

17

Login

Mutual Personal C
funds finance se

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 scrips 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 threetier 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
Moodys' 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 Mumbai400025
REGION

ADDRESS
ICICI Bank ltd, shop No 6, sum
Complex c6 road near stadium circle,
Ahmedabad.38009
ICICI Bank ltd, 73/1 Krishna
Ground Floor, infantry road Ban galore
ICICI
Bank
ltd,
regional
office
Landmark bldg Racecourse circle gotri
Road, Alkapuri Baroda-390007
ICICI Web Trade Ltd, 99 Janpath

Ahmedabad
Ban galore
Baroda
Bhubaneshwar

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

Chandigrah

ICICI Center, Wellington plaza, shop No 42

Ground Floor, 90 Anna Salai Chennai600002.

Chennai

ICICI Bank Ltd Regional office Rizvi

Towers, 18- June Road, saint innex Goa
-403001.
ICICI Bank Ltd, 2nd Nerrla House No-4,
Nagargun Hills, Punjagutta Hyderabad
-500082
ICICI Bank Ltd, Regional Office 114- 115
Arunachal Bldg, Barakhamba Road,
Connaught Place N Delhi- 110001.

Goa
Hyderabad
New Delhi

Nagpur

ICICI Bank Ltd, GR. Floor Near Mawah

Petrol Pump, Law College Square, West
High Court Road, Nagpur- 44010.

Pune

ICICI Bank Ltd, Regional Office A-Segrilla

Garden, 4th Floor Bund Garden, Pune411001.

23

Organization Chart

PM Product Manager
RPM Regional Product Manager
SM- Segment Manager
AUM- assistant Unit Manager
Agents

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:
26

Customer can apply for latest IPO online.

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.

27

Advantages of ICICIdirect.com

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

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
paperworks.

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

convenient, fast & hassle free.

28

Account
opening fees
Recurring
fees
for
trading
account
Demat
AMCs
Demat
charges
Cash
brokerages
BTST
brokerage
Margin
Brokerage
Derivatives
brokerage
Commodity
Brokerage
Product
offered
Cash
BTST
SPOT
Funded
Margin
Margin
Derivatives
Commodities
IPO
Mutual
Fund
Small Saving
Insurance
GOI Bonds
CallNTrade

ICICDirect.com HDFCSec Kotakstreet Sharekhan IndiaBulls MotilalOswal 5

750
700
550
750
500
500
6
0

500

500

360

Inclusive

15

0.75-0.3

0.5

0.59

300

0.15

0.10-0.03

0.15

600

Same as above
0.10-0.03

600

0.1

0.5

0.5

40p

0.5

0.5

40p

15p

0.1
0.1

0.4

10p

0.4

50p

Y
Y-Selective
Y-Selective
Y

Y
N
N
Y

Y
Y
Y
N

Y
Y
N
N

Y
Y
Y
Y

Y
Y
N
N

Y
Y
Y
N

Y
Y
Y
Y
Y

Y
Y
N
Y
N

Y
N
N
Y
Y

Y
Y
N
Y
N

Y
Y
Y
N
N

Y
Y
N
N
N

Y
Y
Y
Y
Y

Y
Y

N
N
N

N
N
Y

N
N
N

N
N
N

N
N
N

Y
Y

Compare to the others

AMC: - Account maintaining Charges

BTST: - Buy today sells tomorrow
IPO: - Initial public offers
GOI: - Government of India

29

2.2 Products and Services

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 FUNDS:
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 BONDS ONLINE:

33

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.
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 scrips. Get daily share prices of all scrips, 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 scrips 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
birds 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

Rs.25

MARGIN/
MARGIN
PLUS
TRADING

Rs.500

BTST

Rs.500

0.70%
Transaction
value + STT+
service tax.
0.10%
Transaction
value + STT +
Service tax on
both sides.
0.70%

SPOT
TRADING

Rs.500

1% Transaction
value + STT
+Service tax

Rs.25

FUTURE
OPTIONS

&

MUTUAL
FUNDS
POSTAL
SAVING
BONDS
IPO

Rs.5000

0.05%
Transaction
value + STT +
Service tax
No. Brokerage

Rs.1000

No. Brokerage

Depends on
lot size of
stock.

No. Brokerage

&

3.1 Customer satisfaction

36

Rs.15

Rs.25

Satisfaction level is the level of persons felt state resulting from comparing products
perceived performance (or outcome) in relation to the persons 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 todays 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 todays 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 Methods 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.

3.3 Customer satisfaction surveys

38

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.
Customers 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
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
39

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 companys 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.

3.4 Investing!! What's that?

40

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

41

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 its 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. Thats 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?

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.
42

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
sector banks have set up mutual funds. Also the two Insurance companies LIC and GIC
43

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
around 1500 shares listed with a total market capitalization of around Rs.921500 crore
44

(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 scrips traded on the BSE have been
classified into A, B1,B2,C,Fand 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 taxpaying

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 investors 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
Friends
Relatives
Agents
Advertisements

NO of respondent
12
26
56
6

Per
12%
26%
56%
06%

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
Online-share trading
CallNTrade

NO of respondent
94
6

Per
94%
6%

The above table shows 94% respondent trade in the ICICIdirect.com through onlineshare 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
Fund transfer mechanism
Brokerage Rates
Safety & Security
Online trading

NO of respondent
33
7
29
31

Per
33%
7%
29%
31%

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
Equity
IPOs
Mutual Funds
Both Equity & Mutual Fund

No Of respondents
32
8
30
30

Per
32%
8%
30%
30%

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

NO of respondent
14
57

Per
14%

Day trading
Margin plus
BTST
Cash on Spot
Both Delivery
Trading

&

18
6
4
2
Day 56

18%
6%
4%
2%
56%

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
58

Per

Yes
No

24
76

24%
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
Equity
Derivatives

NO of respondent
6
2
59

Per
6%
2%

Mutual Fund
Commodity
IPOs
Both equities and Mutual
Fund
All

14
8
6
16

14%
8%
6%
16%

48

48%

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 IPOs,
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
Yes

NO of respondent
32
60

Per
32%

No

68

68%

The above table show 32% respondent need the transact in statement, Demat statement,
contract notes physically and 68% dont need.

4.10. Percentage showing bifurcation of respondent on the basis of

their overall satisfaction level towards the online share trading firm.

Particular
Excellent

NO of respondent
66
61

Per
66%

Very Good
Good
Fair

14
8
12

14%
8%
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.
62

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 customers 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 dont need the physical transact in statement, demat
statement, contract notes etc, Because ICICI direct.com is facilitates online trading &
holdings for the scrips.
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. Advertisements
1. 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.
63

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 dont have full knowledge about the stock market.

64

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.

ANNEXURE
QUESTIONNAIRE FOR DEMAT A/C HOLDERS
Personal Details:
Name __________________________________________________
Contact No.______________________________________________
65

Email Id. ________________________________________________

Occupation_______________________________________________
1.

Private employee

[ ]

2.

3.

Business men [ ]

1.

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

a)

Friends

c)

Agents [ ]

2.

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

a)

13

[ ]

b)

36

[ ]

c)

69

[ ]

d)

9 12

[ ]

3.

How do you trade in ICICIDirect.com?

a)

On line trading

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)

IPOS

[ ]

c)

Mutual Funds

d)

Others (Postal Savings, Insurance, Commodities, etc.)

6.

Which Trading facility do you prefer frequently while trading on ICICI

4.

[ ]

b)
d)

[ ]

Govt. employee
Others

[ ]

[ ]

Relatives

[ ]

Paper Advertisement [ ]

b)

CallNTrade

[ ]

[ ]
[ ]
[ ]
[ ]

[ ]
[ ]

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

8.

Do you need training?

a)

Equity Market

b)

Derivative Market

Yes

[ ]

No

[ ]

c)

Mutual Fund

Yes

[ ]

No

[ ]

[ ]

b)
Yes

No

[ ]

[ ]
No

66

[ ]

d)

Commodity Market

Yes

[ ]

e)

IPO

f)

Others (Postal Savings, Insurance) Yes

9.

Do you want transact in statement, Demat statement, Contract Notes

Yes

No
[ ]
[ ]

[ ]
No

No

[ ]

[ ]

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
3. ICICI direct.com- website of the company
67

4. www.google.co.in

68