CERTIFICA

TE
DECLARAT
ION
 Declaration

I hereby declare that this institutional training report has been

prepared by me under the guidance and supervision of Mrs. V. Aarthi
Agnihothri M.com., M.Phil., M.C.A., Lecturer of the Department of
B.com (CA) and M.com (FC), CMS college of science & commerce,
Coimbatore, in partial fulfillment of the requirements for the award of the
degree M.COM (Finance & Control).

I also declare that this institutional training report has not been
submitted to any other university or institute of the award of any degree or
diploma.

HABIB RAHMAN K.M.

(08MCFC003)
 ACKNOWLEDGEMENT

ACKNOWLEDG
EMENT

I take this opportunity to express my deep sense of gratitude towards

the principal Dr. K. T. Varkey, M.A., PGDBM., Ph.D., and Head of the
department, Department of B.com CA & M.com FC Mr. N. Ravichandran,
M.COM., MFT., MBA., M.PHIL., M.ED., PGDCA., for given me an
opportunity and encouragement in doing this institutional training.

All my efforts would have not been fulfilled without the help and guidance
of my guide Mrs. V. Aarthi Agnihothri M.com., M.Phil., M.C.A., so
special thanks goes to my guide.

I would like to thank Mr. T. Rangarajan, Manager, Global Investments

DBC of ICICI Direct.com, for giving me an opportunity to do this project in
his reputed organization.

Finally I would like to thank the God Almighty, my family, friends and all
those who have directly or indirectly been an immense help to me in
completing my study.
 HABIB RAHMAN KM

CONTENTS
 CONTENTS

Chapter No. Chapter Title Page no.

I Introduction 9

II Organizational Chart 15

III Direct Business Catalyst – The Concept 17

IV Direct Business Catalyst – Working 23

V Products & Services 25

- Conclusion 39

- Bibliography
CHAPTER I

INTRODUC
TION
 General Introduction

A capital market is a market for securities (debt or equity), where

business enterprises (companies) and governments can raise long-term
funds. It is defined as a market in which money is provided for periods
longer than a year, as the raising of short-term funds takes place on other
markets (e.g., the money market). The capital market includes the stock
market (equity securities) and the bond market (debt). Financial regulators,
such as the Reserve Bank o India (RBI) or the Securities Exchange Board of
India (SEBI), oversee the capital markets in their designated jurisdictions to
ensure that investors are protected against fraud, among other duties.

Capital markets may be classified as primary markets and secondary

markets. In primary markets, new stock or bond issues are sold to investors
via a mechanism known as underwriting. In the secondary markets, existing
securities are sold and bought among investors or traders, usually on a
securities exchange, over-the-counter, or elsewhere.

A broker-dealer is a company or other organization that trades securities

for its own account or on behalf of its customers. When executing trade
orders on behalf of a customer, the institution is said to be acting as a broker.
When executing trades for its own account, the institution is said to be acting
as a "dealer." Securities bought from clients or other firms in the capacity of
dealer may be sold to clients or other firms acting again in the capacity of
dealer, or they may become a part of the firm's holdings. Although many
broker-dealers are "independent" firms solely involved in broker-dealer
services, many others are business units or subsidiaries of commercial
banks, investment banks or investment companies.

The Indian capital market has seen an unprecedented boom in its

activity in the last decade. We can now boast of a very large investor
population and substantial volumes of trade. However, this surge in activity
has brought with it, numerous problems that threaten the very survival of the
Capital market in the long run. A closer inspection of the problems would
reveal that most of them arise due to the intrinsic nature of paper based
trading and settlement.

Volumes of paper leading to increased costs and inefficiencies.

Simultaneously, they expose the investors to greater risks putting them at a
disadvantage.

Internet trading is a boon to the investors, Internet trading facilitates

buying/selling of Equities, Futures and Options, Mutual Funds and
subscription to IPO through Internet. Here the investor logs on the system
and executes his transaction by himself. Unlike normal trading where an
investors calls up his broker/sub-broker for placing of order, Internet trading
facilitates order placement through Internet, it saves the time & money of the
investors.
In order to know about the internet trading, practical training is needed for
the students, to hone their skills and expand their knowledge in the Capital
Market.

➢ Profile of the Organization

○ ICICI
 In 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 was also among the first Indian companies to raise funds
from international markets.

○ ICICI DIRECT

ICICI direct is started in March, 1995. Anil kaul is the ceo of this
company. The sales turnover of the company is 2602 million. It’s a sister
concern company of ICICI limited. This organization basically deals this
organization basically deals with on-line share trading. Regd. Office of the
company is at regd. Office of the company is at Mumbai.

○ Profile of Global Investments

Global Investment is a Direct Business catalyst of ICICI. It engages in

the business since 2004. Investors in the Annur area are very much
benefited. “Global Investments” is handling 50 – 60 clients in the Annur
region. It provides the products & services of ICICI to their clients. The
founder of Global Investment is Mr. Rasiyappan, He is a member is ICAI,
He started the Global investment in April 2004 in Annur, Global investment
is the Direct Business Catalyst of ICICI. Global Investment is having more
than 50 clients base in the Annur area. There are about 10-12 staffs in the
office. Mr. T. Rangarajan is the Manager of Global Investment.

Address of Global Investment

ICICI DIRECT.COM
Direct Business Catalyst
Global Investments
184, Kovai main Road
Annur-641653

○ Company’s Vision

To make the “ICICI DIRECT” a dominant online share trading by world

class people and services.

This hope to achieve by:

• Understanding the needs of customers and offering them superior
product and service.

• Leveraging technology to service customers quickly and conveniently.

• Developing and implementing superior risk management and

investment strategic to offer sustainable and stable return to our
shareholder.

• Providing and enabling environment to foster growth and learning for

our employees
CHAPTER II

ORGANIZA
TION
CHART
 IWTL

Franchisee

DBC Manager

Marketing Assistants Traders Office Assistants

CHAPTER III

DIRECT
BUSINESS
CATALYST
–THE
CONCEPT
 ➢ Direct Business Catalyst (DBC):

A Direct Business Catalyst (DBC) is an entity which gets new clients

for ICICI Direct and nurtures them by offering them the trade facility on
phone. For all its effort it gets a fixed referral fee and trail commission.

○ Role

Acting as a facilitator between ICICI Direct and the end customer, he

introduces a client to ICICI Direct, get his I-direct account opened and
subsequently on the request of the client he places orders for him on his
behalf in clients account.

○ Advantages:

One should be associated with Icici direct for the following reasons
and many more:

a) There are a wide range of products namely:

Equity trading
Derivatives trading
Mutual funds
IPO’s

b) Client security is at its highest

 Banker being Icici bank
Depository bank

c) High Technology available

Online risk management system

Automated back end operations

d) Constant endeavor to remain updated in the markets

Through newer products

Through better technologies
Provide unlimited reach and accessibility

e) Customer centric approach

f) Competitively priced for the end customer

g) Brand name of Icici to back DBC

h) Clear and decisive legal agreements beneficial to both.

○ Requirements of DBC

A prospective DBC is expected to have the following:

 a) Minimum Experience of 3 years in the capital Market
b) Minimum Educational Qualification of a graduate
c) A client base of at least 10

The following can become a DBC of ICICI Direct.

a) An Indian resident individual
b) A sole-proprietorship firm
c) An Indian resident company.

➢ Relationship

A DBC is a referral agent of ICICI direct. A BDC should not be

confused either as a sub-broker or Franchise. Unlike sub-broker it does not
issue bills/contracts to the clients and unlike Franchise he need not have
infrastructural setup. Since the DBC only referral agent to ICICI direct, the
clients will be registered with Icici direct only.

➢ Agreement

The agreement between DBC and IWTL is a pure referral agreement.

As per the agreement the DBC acts a referral agent for IWTL

➢ Capital Investment:

The capital investment required is very minimal. All a DBC needs to

invest in computers, telephone line, an internet connection, and a small
place. In fact all the above requirements are considered essential to survive.
Thus in reality the investment would actually be nil. In case he wants to
avail of the VSAT facilities, then a small investment for that is required.

DBC need not have to keep any deposit with IWTL. However since
he could be operating the account of various clients of ICICI Direct, he
should keep a fixed deposit of at least Rs. 1 lacs with Icici bank and mark a
lien to IWTL. This way a DBC would be able to generate interest also on his
Fixed Deposit.

➢ Working Capital:

The recurring expenses are negligible. A DBC would require a total of

about 50, 000 – 65, 000 per month recurring charges. These expenses will
broadly on account of staff salary, telephone charges, internet connection
and rent.

➢ Records:

Since DBC is not a sub-broker. He does not have to bother about the
payin and payout of the clients, he need not maintain any record of the trade
done in his clients account. All such things will be automatically taken care
of by ICICI Direct.

However the DBC have to maintain the office accounts for their
purpose

➢ Income of DBC:
 For all the services that a DBC may offer to his clients, IWTL will
pay a trail commission to him.

DBC does not enter into any sort of financial relationship with the
client. He is not entitled to receive any sort of commission from the client.

The interest earned from the fixed deposit belongs to the DBC
CHAPTER IV

DIRECT
BUSINESS
CATALYST
–
WORKING
DBC PRACTISE
 Clients
DBC Perform
make
Market
Investorrequest
the transaction
DBC to
Decision
Condition
Buy/Sell
Online
(offline)
Buy/Sell

Changes in the capital market condition insists the investor to make

decision on securities, Offline clients communicate the DBC to perform the
decision. DBC perform the decision instead of the client as per their request.
 ➢ I-Direct A/c:

CHAPTER V

PRODUCTS
&
SERVICES

I-Direct A/c is a 3-in-1 trading platform links the Banking, Trading,

Demat accounts, ensuring unmatched convenience for customers.

○ Features:

✔ Convenience – no cheques or TIFDS

✔ Security of money and shares

✔ Transparency
 ✔ Multiple products – Equity, F&O, IPOs, Bonds, Mutual
funds

✔ No follow up for payments

✔ Online bills and accounts

✔ Digital contract notes

✔ Resident Indian, HUF, Corporate, NRI can open an ICICI

Direct trading account.

✔ 10 digit account number starting with 85 for RI and HUF,

55 for corporate

✔ Charges – Account opening charges of Rs. 750/- and

brokerage charges as mentioned in the Icici direct
account opening form

○ Advantages

Seamless, Secure and Integrated 3-in-1 trading platform.

Our 3-in-1 trading platform links your banking, trading and demat accounts,
ensuring unmatched convenience for customers.

With an ICICIdirect.com account, you get the following benefits:

a) Seamless Trading: You can trade in shares without going through the
hassle of tracking settlement cycles, writing cheques and transfer
instructions. Absolutely hassle free!

b) Security: Instead of transferring monies to a broker's pool or towards

deposits, you can manage your own demat and bank accounts when you
trade through ICICIdirect.com. It provides you the flexibility to pay only
when you trade.

c) Wide range of products: Share trading in both NSE and BSE, innovative
offerings like - Margin, Margin Plus, BTST, and SPOT. Derivatives trading,
overseas trading, mutual funds, IPOs and on-line life insurance.

d) Award Winning Research: We understand the need for the right research
to make the right investment decision and has focused heavily n this area.
Our team with its consistent delivery has been voted as the 'Most preferred
brand of financial advisory services' at the CNBC Awaaz Consumer
Awards, 2007.

e) Control: You can be rest assured, that your order will be precisely for the
amount you wanted it to be, without any deviation, giving you full control of
your money and your trades

○ Procedure for Opening I-Direct A/c:

After referring the client DBC facilitates the account opening process
for such client and check the application form and sends them to IWTL for
account opening, with his code on the top. The clients referred by the DBC
might not have a regular access to the internet and therefore wishes to trade
through phone. For that purpose they might authorize the DBC to place
orders on their behalf. For the same the clients gives a letter of authority to
the DBC and intimates IWTL in a standard format. After receiving the
intimation from the client, IWTL would link the client account to the
respective DBC.

The account opening takes three working days after the properly filled
in application form reaches our Maratha Mandir Branch at Mumbai. DBC
should ideally send the forms directly to this branch.

A DBC should ensure that the forms are properly filled in and the
documents required are properly attached. To facilitate the checking of the
forms a check list is provided at the end of every form. A DBC should take
use of this checklist.

If the forms are incomplete then the forms will be rejected by the
account opening team. In that case the form will be going back to the DBC
and again it has to come back from him after the completion. This might
delay the total account opening process by a minimum of 10 days and will
also add up to the cost.
 ➢ Products

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.

○ 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 upto 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 upto 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.
  Call N Trade®:

Call N Trade® allows you to call on a local number in your city &
trade on the telephone through our Customer Service Executives. This
facility is currently available in over 11 major states across India.

 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.

○ 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.

 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.

○ 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 MF, CHOLA MF, Deutsche MF, HSBC MF and
Standard Chartered MF are the Mutual Funds available for investment. You
can invest in mutual funds without the hassles of filling application forms or
any other paperwork. You need no signatures or proof of identity for
investing.

Once you place a request for investing in a particular fund, there are
no manual processes involved. Your bank funds are automatically debited or
credited while simultaneously crediting or debiting your unit holdings.

You also get control over your investments with online order
confirmations and order status tracking. Get to know the performance of
your investments through online updation of MF portfolio with current
NAV.

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 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.

 Transfer-in:
 You can convert your existing Mutual funds into electronic mode
through a transfer-in request.

○ IPO’s and Bonds Online

You could also invest in Initial Public Offers (IPOs) and Bonds online
without going through the hassles of filling ANY application form/
paperwork.

Get in-depth analyses of new IPOs issues (Initial Public Offerings) which
are about to hit the market and analysis on these. IPO calendar, recent IPO
listings, prospectus/offer documents, and IPO analysis are few of the
features, which help you, keep on top of the IPO markets.

○ Services

 ICICIdirect.com Equity Advisory Group:

A premium service for privileged customers with an assigned equity

advisor who will guide you in placing trades. For more details please write
in to equityadvisory@icicidirect.com

 ICICI Securities ATS (Active Trader Services):

 A service for the born trader, who lives in and breathes the stock
market with specialized research and dedicated relationship managers. For
more details write in to ats@icicisecurities.in

 ICICIdirect Knowledge Program:

ICICIdirect Knowledge Programs provide you with an insight into a

wide range of financial products like derivatives, shares, mutual funds, IPOs,
small savings and insurance to grow your money and cater to your varying
needs across different stages of life. More than just products these programs
help you make informed investment decisions and manage your money
better.
 CONCLUSI
ON

The study was conducted to know the Concept, Working,

organizational structure of Global Investment. For the study data was
collected through direct personal interview, organization printed materials,
and icicidirect.com Website etc.

The study was very much beneficial for me as I got in detail how the
securities are traded online. I enriched the experience to a great extend.
There was some scope of development for me by conducting the study.

According to the study the institution is doing well; but In order to

sustain the competition in the market some more efforts are to be taken. The
personnel should work in a co-ordination for the success and smooth
functioning of the organization.

The DBC is a good retail business partner to serve their clients of

ICIC Direct, The DBC also benefitted by being a franchisee of IWTL, able
to develop their business in the online trading.
BIBLIOGRA
PHY &
ABBREVAT
IONS
WEBSITES

• www.icicidirect.com

• www.scribd.com

• www.wikipedia.org

ABBREVATIONS

• ICICI – Industrial Credit Investment Corporation of India

• DBC – Direct Business Catalyt

• IWTL – ICICI Web Trade Limited

• MF – Mutual Fund

• SIP – Systematic investment Plan

• ATS – Active Trader Services

• NAV – Net Asset Value

• F & O – Future & Options

• IPO – Initial Public Offer