Icici Bank Traning Report

8/7/2019 Icici Bank Traning Report

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RCET, BHILAI, MBA 2009-2011

KOHKA-KURUD ROAD, BHILAI

DECLARATION

As a part of M.B.A Finance, program, at Rungta College Of Engineering &

Technology Bhilai, I NEELAM MESHRAM , have done a study on CONSUMER

PERCEPTION TOWARDS DEMAT A/C WITH ICICI BANKas part of Summer Training

.Programme and I hereby state that this work is an original one and has not been submitted

to any university / Institution for the award of any degree

APPROVED BY, GUIDED BY,

MR.RAMAN R RAO MRS. SARITA DASHHead Of Department Lecturer MBA Department

Date: SUBMITTED BY,

Place: NEELAM MESHRAMRoll No: MBA/09/4233

MBA III Semester 2010


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ACKNOWLEDGEMENT

It was a great opportunity for me to work with ICICI bankin the field of Finance Industry. I am

extremely grateful to all those who have shared their expertise and knowledge with me and

without whom the completion of this project would have been virtually impossible.

Firstly, I would like to thank our Company Guide Mr. Gulzar Marhas Training Manager who

has been a constant source of inspiration for me during the completion of this project. He gave

me invaluable inputs during my endeavor to complete this project. I am indebted to all staff of

ICICI bankfor their valuable support and cooperation during the entire tenure of this project.

Not to forget, all those who have kept my spirits surging and helped delivering my best.

I would also like to convey my deep regards to MRS SARITA DASH, Project Guide, RCET

and to all my team members who had always bestowed upon me their goodwill, blessings and

providing me with the best of amenities.

Signature of the student

Name: NEELAM MESHRAM

Roll no :MBA/09/4233

III Semester


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PREFACE

The successful completion of this project was a unique experience for me because by visiting

many place and interacting various person, I achieved a better knowledge about sales. The

experience which I gained by doing this project was essential at this turning point of my career

this project is being submitted which content detailed analysis of the research under taken by me.

The research provides an opportunity to the student to devote his/her skills knowledge and

competencies required during the technical session.

The research is on the topic COMSUMER PREFERANCE TOWARDS

DEMAT A/C WITH ICICI DIRECT


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TABLE OF CONTENTS

CHAPTERS TITLE

Chapter 1 Introduction about the Project1.1 Introduction

1.2 objectives of the study

1.3 scope of the study

1.4 Limitations of the study

Chapter 2 Introduction of the company and Demat

2.1 Company profile

2.2 History of ICICI

2.3 Organizational structure

2.4 Introduction about ICICI DIRECT

2.5 3-in-1 A/C

Chapter 3 Research Methodology


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Chapter 4 Data Analysis and interpretation

Chapter 5 Findings of the Project

Chapter 6 Conclusion of the Project

7.1 Conclusion from Analysis

7.2 Learn from Analysis

Chapter 7 Suggestions for Recommendations

Chapter 8 Questionnaire

Chapter 9 Bibliography and reference

CHAPTER-1


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INTRODUCTION ABOUT THE

PROJECT

INTRODUCTION

It is true that all market starts with consumer and closes with consumer therefore consumer plays

an important role. Consumer decides what to purchase, for whom to purchase, why to purchase,

from where to purchase, and how much to purchase. In order to become a successful marketer,

he must know the liking or disliking of the customers.

For any market it is very important to know the perception level of any

consumer. There are so many services are providing in the market by many organization so it is

very difficult to find out that how many people are aware of our service and how many of them

are actually utilizing that service.

The study of the consumer perception not only focuses on how consumers

perusing, but also focuses on how and why consumers make choice of the services they buy and

their evaluation of these services after use. So for success of any company or product promotion

it is very necessary to depart its concentration towards consumer perception so that after

understanding they can make a choice.


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OBJECTIVE OF THE PROJECT REPORT

There are two types of objectives of the study.

y Primary objective To know the consumer perception towards DEMAT Account ofICICI.

y Secondary objective - To co llect the in for mat ion abou t the p re fere nce le ve lof consumer using DEMAT account.


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SCOPE OF THE STUDY

y The scope is to provide the more information to the customer about the variousservices provided by the company so that they also be more aware about the

services of the company.

y To find out the perception, views, and opinion of the customer.


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LIMITATIONS

a) More enquiries.For opening a Demat a/c in bank, they require lots of information about an individual forwhich they enquire more and more to them.

b)Charges applied.Charges for opening a Demat a/c in a bank is very high, there are the charges like transactioncharges, statement charges, pledge charges, etc.

c) Risky in terms of operation.As in the stock exchange when their will be fall or rise in the price of shares / warrants it is notdefined, similarly when an investor open a Demat a/c he does not know how long its profit willbe occur.


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d)Technical in nature.Demat services are fully system based services. Today the world of new technology theprocess of Dematerialization is based on it which may new to an individual makes the process

more technical in nature.

CHAPTER 2

INTRODUCTION OF THE COMPANY

AND DEMAT A/C


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2.1 COMPANY PROFILE

ICICI Bank (formerly Industrial Credit and Investment Corporation of India) is a major banking

and financial services organization in India. It is the 4th largest bank in India and the largest

private sector bank in India by market capitalization. The bank also has a network of 2,016

branches (as on 31 March 2010) and about 5,219 ATMs in India and presence in 18 countries as

well as some 24 million customers (at the end of July 2007). ICICI Bank offers a wide range of

banking products and financial services to corporate and retail customers through a variety of

delivery channels and specialization subsidiaries and affiliates in the areas of investment

banking, life and non-life insurance, venture capital and asset management. (These data are

dynamic.) ICICI Bank is also the largest issuer of credit cards in India.


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2.2 HISTORY OF 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. Besidesfunding from the World Bank and other multi-lateral agencies, ICICI also among the first

Indian companies to raise funds from International markets.

In 1956-ICICI declared its first Dividend at 3.5%.

1961-The first West German loan of DM 5 million from Kredianstalt was obtained byICICI.


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1967-ICICI made its first debenture issue for Rs.6 crore, which was over-subscribed.

1972-Second entity in India to set-up merchant banking services. 1977-ICICI sponsors the formation of Housing Development Finance Corporation.

Managed its first equity public issue

1982-Becomes the first ever Indian borrower to raise European Currency Units.

1986-ICICI first Indian Institution to receive ADB Loans. First public issue by an Indianentity in the Swiss Capital Markets.

1986-ICICI along with UTI sets up Credit Rating Information Services of India Limited,(CRISIL) India's first professional credit rating agency.

1986-ICICI promotes Shipping Credit and Investment Company of India Limited.(SCICI).

1986-The Corporation made a public issue of Swiss Franc 75 million in Switzerland, thefirst public issue by any Indian equity in the Swiss Capital Market.

1987-ICICI signed a loan agreement for Sterling Pound 10 million with CommonwealthDevelopment Corporation (CDC), the first loan by CDC for financing projects in India.

1993-ICICI sets-up ICICI Securities and Finance Company Limited in joint venture withJ. P. Morgan.

1993-ICICI sets up ICICI Asset Management Company.

1994-ICICI sets up ICICI Bank.


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1996-ICICI becomes the first company in the Indian financial sector to raise GDR.

1996-ICICI announces merger with SCICI. 1996-Mr.K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd.

1997-ICICI was the first intermediary to move away from single prime rate to three-tierprime rates structure and introduced yield-curve based pricing.

1997-The name "The Industrial Credit and Investment Corporation of India Limited waschanged to "ICICI Limited".

1997-ICICI announces takeover of ITC Classic Finance.

1998-Introduced the new logo symbolizing a common corporate identity for the ICICIGroup.

1999-ICICI launches retail finance - car loans, house loans and loans for consumerdurables.

1999-ICICI becomes the first Indian Company to list on the NYSE through an issue ofAmerican Depositary Shares.

2000-ICICI Bank announces merger with Bank of Madura.

2000- ICICI Bank became the first Indian bank to list on the New York Stock Exchangewith its $175-million American depository shares issue generating a demand book 13

times its size at $2.2 billion. The Bank proposes to bring credit cards to the "large,

underserved population" in rural and semi-urban areas. The ICICI has announced the

launch of mobile banking services for its customers, using the wireless application

protocol (WAP) technology. ICICI Bank becomes the first commercial bank from India

to list its stock on NYSE.


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ICICI Bank has set up an ATM facility at an Indian Oil Corporation petrol-diesel outlet atChennai.

ICICI Bank has tied up with Chennai Telephones to provide Internet bill payment facilityto its customers.

The Bank proposes to extend its area of operation by opening about 35 to 40 offices andextension counters during the current fiscal subject to the Reserve Bank of India's

approval. ICICI has signed a tripartite agreementwith Amitabh Bachchan Corporation

Ltd. and Mr. AmitabhBachchan, appointing him as its brand ambassador.

2001-The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with ICICIBank.

2002-Merger of ICICI Limited, ICICI Capital Services Ltd and ICICI Personal FinancialServices Limited with ICICI Bank.

2002-ICICI Bank Ltd has informed BSE that Reserve Bank of India on April 26.

2002 approved the merger of ICICI Ltd and two of its wholly owned subsidiaries, ICICIPersonal Financial Services Ltd and ICICI Capital Services Ltd with ICICI Bank Ltd.

Launches e Cheques facility for its internet banking launches a scheme called `MutualFund Sweep Account' which enables its customers to invest surplus funds in their current

accounts in high-liquidity mutual funds through an automatic sweep facility

High Court approves ICICI, ICICI Bank merger

RBI approves ICICI Bank--ICICI merger


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Deposits Rs 3,000 cr with RBI to meet Cash Reserve Ratio (CRR) requirements.

ICICIdirect.com unveils Direct Alerts.

y World's Best Internet Bank Awards 2002y Ties up with IL&FS Mutual Fund to offer to mutual fund products onliney Gets Debt Recovery Appellate Tribunal (DRAT) approval to divest Daewoo's

Surajpur assets

y Figures among the Top 1000 world banksy ICICI Bank bags UK Banker Magazine awardy Becomes the first Indian bank to launch a Resident Foreign Currency (RFC)

account

y ICICI Bank chairman Mr. N Vaghul heads Asset Reconstruction Company (ARC)y 2004-ICICI bank credit cards cross two million marks ICICI Banks 300 million

dollar Eurobond has been awarded for being the best bond issue of India and

emerging Asian market during 2003, by two foreign magazines

In 2004 ICICI Bank introduced the concept of floating rate for home loans in India. In 2005ICICI Bank became the first private entity in India to offer a discount to retail

investors for its follow-up offer

First Indian company to make a simultaneous equity offering of $1.8 billion in India, theUnited States and Japan.

In 2006 ICICI Bank became the largest retail player in the market to introduce abiometric enabled smart card that allow banking transactions to be conducted on the field.A low-cost solution, this became an effective delivery option for ICICI Banks micro

finance institution partners.

In 2007ICICI Banks USD 2 billion 3-tranche international bond offering was the largestbond offering by an Indian bank.

Sangli Bank amalgamated with ICICI Bank.


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ICICI Bank raised Rs 20,000 crore (approx $5 billion) from both domestic andinternational markets through a follow-on public offer.

ICICI Bank became the first bank in India to launch a premium credit card -- The VisaSignature Credit Card.

ICICI Bank became the first private bank in India to offer both floating and fixed rate oncar loans, commercial vehicles loans, construction equipment loans and professional

equipment loans.

In 2008 ICICI Bank enters US, launches its first branch in New York ICICI Bank enters Germany, opens its first branch in Frankfurt ICICI Bank launched iMobile, a breakthrough innovation in banking where practically all

internet banking transactions can now be simply done on mobile phones.

In 2009 ICICI bank ties up with BSNL Cell One for bill payments, it will facilitate billpayment for BSNL Cell One users through www.icicibank.com across all the 27 circles

of BSNL.

Ms Chanda Kochhar takes charge as the Managing Director & CEO of ICICI Bank fromMay 1, 2009


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2.3 ORGANIZATIONAL STRUCTURE

OF ICICI


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2.4 INTRODUCTION ABOUT ICICI DIRECT

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.

ICICI

BANK

LIMITED

ICICIPrudencial life

insurence

ICICI

Securities

ICICILOMBARD

generalinsurancecompany

ICICI Venture


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1. TRADING-IN-SHARE: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 20 times your available funds, wherein you take long buy/ short sell positions in stocks withthe 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 f or 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 ICICIBank ATMs.

2. TRADE IN DERIVATIVES:Futures


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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.

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.

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 throughICICIdirect.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.

4. IPOs AND BOND ONLINE:You could also invest in Initial Public Offers (IPOs) and Bonds online without going through the

hassles of filling ANY application form/ paperwork.


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5. 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.


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2.5 ICICI DIRECT providesus 3 in 1 accountfacilities:

y SAVING ACCOUNT

y TRADING ACCOUNT

y DEMAT ACCOUNT

3 - IN - 1 A/C

DEMATA/C

BANKA/C

TRADINGA/C


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SAVING ACCOUNT

Savings accounts are accounts maintained by retail financial institutions that pay interest but

can not be used directly as money ( for example, by writing a cheque). These accounts let

customers set aside a portion of their liquid assets while earning a monetary return.

Costs

Withdrawals from a savings account are occasionally costly and are sometimes much higher and

more time-consuming than the same financial transaction being performed on a demand (current)

account. However, most savings accounts do not limit withdrawals, unlike certificates of deposit.

In the United States, violations of Regulation D often involve a service charge, or even a

downgrade of the account to a checking account. With online accounts, the main penalty is the

time required for the Automated Clearing House to transfer funds from the online account to a

"brick and mortar" bank where it can be easily accessed. During the period between when funds

are withdrawn from the online bank and transferred to the local bank, no interest is earned.

Online savings accounts

Some financial institutions offer online-only savings accounts. These usually pay higher interest

rates and sometimes carry higher security restrictions. Those with high interest rates have risen

in popularity with the rise of the internet.[2]


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TRADING ACCOUNT

Trading account assets refer to a separate account managed by banks that buy (underwriting)

U.S. government securities and other securities for their own trading account or for resale at a

profit to other banks and to the public, rather than for investment in the bank's own investment

portfolio. Trading assets are segregated from the investment portfolio. They are recorded

separately when acquired until they are disposed of or sold, and are then recorded at the price in

effect when these securities are purchased or sold. Trading assets held for other banks are

marked to market (adjusted to current market value) while held by a bank.

Trading in dematerialized securities is quite similar to trading in physical securities. The major

difference is that at the time of settlement, instead of delivery/ receipt of securities in thephysical form, it is done through account transfer.

An investor cannot trade in dematerialized securities through his DP. Trading at the stock

exchanges can be done only through a registered trading member (broker) of the stock exchange

irrespective of whether the securities are held in physical or dematerialized form. DPs role will

only be to facilitate settlement of trade in the dematerialized form, by transferring securities from

and to the account of the investor, for selling and buying respectively.

Trading in dematerialized securities is presently available at NSE, BSE, CSE, DSE, LSE, MSE,

ISE & OTCEI. These exchanges have a segment exclusive for trading in dematerialized

securities and a segment where trades could be settled either in the physical or in the

dematerialized form as per the choice of the delivering client. In unified (erstwhile - physical)

segment securities can be delivered either in the physical form or in the dematerialized form at

the choice of the delivering party.

However, securities that have to be mandatorily settled in demat form (both by institutional

investors & all category of investors) cannot be settled in physical form. Also for securities that

have to be mandatorily settled in demat form by all categories of investors the concept of market

lot is eliminated i.e. the tradable lot is one share from the date they become compulsory.


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Since January 4, 1999, all categories of investors can deliver only in dematerialized form with

respect to a select list of securities (which is expanded from time to time). For these scrips, from

the date they become compulsory, the concept of market lot is eliminated i.e. the tradable lot for

these scrips is one share. This will be applicable only at those exchanges that have joined the

depository.

Also, from January 15, 1998, select category of investors can deliver only in dematerialized form

with respect to a select list of securities (which is expanded from time to time).

Consequently there will be separate price quotes available for each scrips in both the segments.

The trades in each of these segments cannot be netted off with each other.

The facility of delivering dematerialized securities in the physical segments of the stock

exchanges is available for all the companies that are eligible for dematerialization. This also

applies to delivery against auction of securities in the physical segment.

However, at DSE dematerialized securities can be presently traded only in the exclusive demat

segment. They are not accepted as good delivery in the physical segment. At LSE,

dematerialized securities can be delivered only in the unified (erstwhile - physical) segment.

Presently, LSE does not have an exclusive demat segment.

Non pari-passu shares (like partly paid up bonus/ right shares with pro-rata dividend) are

identified with separate ISIN (scrip codes) and can be traded separately. These can also be

delivered against obligation in pari-passu shares along with dividend cheques.

In the unified (erstwhile - physical) segment, auction trade obligations can be met & delivering

dematerialized securities can make bad delivery rectification.

Trades in each segment have to be settled separately and cannot be netted between segments for

settlement.


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Any investor, who buys securities from any of the stock exchanges where dematerialized

securities are available, may receive his delivery in the dematerialized form as dematerialized

shares can be delivered in the physical segment at the option of the seller.

Therefore those investors who buy securities from these exchanges should necessarily open a

depository account to take delivery of these shares.

SQUARING OFF

It is possible to square off trades in dematerialized securities. In the exclusive demat segment,

the trades can be squared off within the same day as this segment follows a rolling settlement

cycle. In the physical segment the trades can be squared off within the trading period specified

for that stock exchange. This is presently five working days, between Wednesday to Tuesday at

NSE, Monday to Friday at BSE and Thursday to Wednesday at CSE. At CSE for some of the

shares (classified as specified group) the trading period is 14 days.

If an investor squares off his position within the trading period, he does not need to open a

depository account. A Depository accounts is required for taking delivery or giving delivery of

dematerialized securities in case of buy or sell respectively. In case the investor squares off his

trade, and hence, does not have to take or give delivery of dematerialized securities, the

depository account is not used.

As in the physical segment, an investor can go long or short in the demat segment also.

Trading in shares

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


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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

up to 20 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


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DEMAT ACCOUNT

Overview of Demat Account

Demat account allows you to buy, sell and transact shares without the endless paperwork and

delays. It is also safe, secure and convenient. In India, a Demat account, the abbreviation for

dematerialized account, is a type of banking account which dematerializes paper-based physical

stock shares. The dematerialized account is used to avoid holding physical shares: the shares are

bought and sold through a stock broker. This account is popular in India. The Securities and

Exchange Board of India (SEBI) mandates a Demat account for share trading above 500 shares.

As of April2006, it became mandatory that any person holding a Demat account should possess a

Permanent Account Number (PAN), and the deadline for submission of PAN details to the

depository lapsed on January 2007.

Is a Demat account a must?

Now a day, practically all trades have to be settled in dematerialized form.

Although the market regulator, the Securities and Exchange Board

What is Dematerialization?

Dematerialization or Demat is a process whereby your securities like shares, etc, are converted

into electronic data and stored in computers by a Depository. Securities registered in your name

are surrendered to depository participant (DP) and these are sent to the respective companies

who will cancel them after Dematerialization and credit your depository account with the DP.

The securities on Dematerialization appear as balances in your depository account. These

balances are transferable like physical shares. If at a later date, you wish to have these Demat

securities converted back into paper certificates; the Depository helps you to do this.


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Dematerialization is the process of converting the securities held in physical form (certificates)

to an equivalent number of securities in electronic form and crediting the same to the investors

Demat account.

Dematerialized securities do not have any certificate numbers or distinctive numbers and are

dealt only in quantity i.e.; the securities are fungible.

Dematerialization of your holdings is not mandatory. You can hold your securities either in

demat form or in physical form. You can also keep part of your holdings (in the same scrip) in

demat form & part in physical form. However, securities specified by SEBI can be delivered

only in demat form in the stock exchanges connected to NSDL and / or CDSL.

Steps involved in opening a Demat account

First an investor has to approach a DP and fill up an account opening form. The account opening

form must be supported by copies of any one of the approved documents to serve as proof of

identity (POI) and proof of address (POA) as specified by SEBI. Besides, production of PAN

card in original at the time of opening of account has been made mandatory effective from April

01; 2006.All applicants should carry original documents for verification by an authorized official

of the depository participant, under his signature.

Further, the investor has to sign an agreement with DP in a depository prescribed standard

format, which details rights and duties of investor and DP. DP should provide the investor with a

copy of the agreement and schedule of charges for their future reference. The DP will open the

account in the system and give an account number, which is also called BO ID (Beneficiary

Owner Identification number).

The DP may revise the charges by giving 30 days notice in advance. SEBI has rationalized the

cost structure for dematerialization by removing account opening charges, transaction charges


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for credit of securities, and custody charges vide circular dated January 28, 2005. Further, SEBI

has vide circular dated November 09, 2005 advised that with effect from January 09, 2006, no

charges shall be levied by a depository on DP and consequently, by a DP on a Beneficiary

Owner (BO) when a BO transfers all the securities lying in his account to another branch of the

same DP or to another DP of the same depository or another depository, provided the BO

Account/s at transferee DP and at transferor DP are one and the same, i.e. identical in all

respects. In case the BO Account at transferor DP is a joint account, the BO Account at

transferee DP should also be a joint account in the same sequence of ownership.

What is Depository?

A depository is like a bank where securities are held in electronic (dematerialized) form. In

India, there are two Depositories National securities Depositories Limited (NSDL) and Central

Depository Services Limited (CDSL).Under the Depositories Act, investors can avail of the

services of the Depositories through Depository Participants (DP) such as ICICI bank. DPs are

like bank branches wherein shares in physical form need to be deposited for converting the same

to electronic (Demat) form.

NSDL carries out its activities through various functionaries called business partners who

include Depository Participants (DPs), issuing corporate and their Registrars and Transfer

Agents, Clearing corporations/Clearing Houses etc. NSDL is electronically linked to each

of these business partners via a satellite link through Very Small Aperture Terminals (VSATs).

The entire integrated system (including the VSAT linkups and the software at NSDL and each

business partners end) has been named as the NEST [National Electronic Settlement &

Transfer] system.

The investor interacts with the depository through a depository participant of NSDL. A DP canbe a bank, financial institution, a custodian or a broker. Just as one opens a bank account in order

to avail of the services of a bank, an investor opens a depository account with a depository

participant in order to avail of depository facilities.


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Rights

1. You can open more than one depository account in the same name with single DP/

multipleDPs.2. No minimum balance is required to be maintained in a depository account.

3. You can give a onetime standing instruction to your DP to receive all the credits coming to

your depository account automatically.

Procedure

1. Fill account opening form (available with your DP).

2. Give your DP the duly filled account opening form with introduction documents as may berequired.

3. Sign agreement with DP (agreement will state rights & obligations of both parties). The

agreement will contain the fee structure of your DP. Your DP would give you a copy of this

signed agreement for your record.

4. DP would give you Client Id no. (Account no.) Once your depository account is opened. This

Client Id no. along with your DP Id no. Forms a unique combination. Both these nos. should be

quoted in all your future correspondence with DP/NSDL / Issuing Company/their registrar &

transfer (R&T) agent

5. Your DP would give you pre-printed instruction slips for depository services viz.,

dematerialization, delivery instruction for trades, etc.Preserve these carefully.

6.Your DP would give you a list of deadlines for giving instructions for various depository

activities viz., transfer for effecting sale, purchase etc.. If not, checkwith the DP.


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Required Documents

The extent of documentation required to open a Demat Account may vary

according to your relationship with the institution. If you plan to open a Demat account with abank, a savings account holder has an edge over the non-account holder. In fact, banks usually

offer additional incentives to customers who open a Demat account with them. Along with the

application form, your photographs (with co-applicants) and proof of identity/residence/date of

birth have to be submitted. The DPs also ask for a DP-client agreement to be executed on non-

judicial stamp paper. Here is a broad list (you wont need all of them though):

PAN card

Voters ID

Ration card

Drivers license

Photo credit card

Employee ID card


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Benefits of Demat Account

A safe and convenient way to hold securities;

Immediate transfer of securities;

No stamp duty on transfer of securities;

Elimination of risks associated with physical certificates such as bad delivery, fakesecurities, delays, thefts etc.

Reduction in paperwork involved in transfer of securities;

Reduction in transaction cost;

No odd lot problem, even one share can be sold;

Nomination facility;


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Delivery trading

In Intraday trading you buy and sell the same day without actually getting the shares in your

account. Delivery based trading means that you actually get the stocks you buy and then can sellwhenever you want to.

Day trading

Refers to the practice of buying and selling financial instruments within the same trading day

such that all positions are usually closed before the market close for the trading day. Traders that

participate in day trading are called active traders or day traders. Some of the more commonly

day-traded financial instruments are stocks, stock options, currencies, and a host of futurescontracts such as equity index futures, interest rate futures, and commodity futures.

Margin plus

Margin PLUS offers an order placement feature through which you can take an intra-day

position in the equity segment and at the same time, place a cover order for this position

specifying the Stop Loss Trigger Price and the limit price. This cover order will help you to limit

the loss, if any, on the position.

How does Margin Plus work?

At the time of taking a position in Margin Plus, you would also be required to specify a Stop

Loss Order, and hence limiting your loss to that extent. Since the risk is now limited to the

difference between your Buy/Sell rate and the Limit price, margin will be primarily based on this

difference.


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Features

y Margin Plus is available for intraday trading in more than 60 stocks on ICICIdirect.comy Helps to limit your loss through a Stop Loss Ordery Open Margin Plus positions can be closed any time before the End of Settlement timings

as specified by ICICIdirect.com

Derivatives

In financial terms, a derivative is a financial instrument - or more simply, an agreement between

two people or two parties - that has a value determined by the price of something else (called the

underlying). It is a financial contract with a value linked to the expected future price movements

of the asset it is linked to - such as a share or a currency. There are many kinds of derivatives,

with the most notable being swaps, futures, and options. However, since a derivative can be

placed on any sort of security, the scope of all derivatives possible is nearly endless. Thus, the

real definition of a derivative is an agreement between two parties that is contingent on a future

outcome of the underlying.

Mutual funds

is a professionally managed type of collective investment scheme that pools money from many

investors and invests typically in investment securities (stocks, bonds, short-term money market

instruments, other mutual funds, other securities, and/or commodities such as precious metals).

The mutual fund will have a fund manager that trades (buys and sells) the fund's investments in

accordance with the fund's investment objective. In the U.S., a fund registered with the Securities

and Exchange Commission (SEC) under both SEC and Internal Revenue Service (IRS) rules

must distribute nearly all of its net income and net realized gains from the sale of securities (if

any) to its investors at least annually.


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Initial public offense

referred to simply as an "offering" or "flotation," is when a company (called the issuer) issues

common stock or shares to the public for the first time. They are often issued by smaller,

younger companies seeking capital to expand, but can also be done by large privately-owned

companies looking to become publicly traded. An IPO can be a risky investment. For the

individual investor it is tough to predict what the stock or shares will do on its initial day of

trading and in the near future since there is often little historical data with which to analyze the

company


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2.3 DEMATERIALIZATION AND REMATERIALIZATION

How To Dematerialize Your Shares

To dematerialize your share certificates you have to:

y Fill up a dematerialization request form, which is available with your DP;y Submit your share certificates along with the form; (write "surrendered for demat" on the

face of the certificate before submitting it for demat)

y Receive credit for the dematerialized shares into your account in 15 days.

Dematerialized shares do not have any distinctive or certificate numbers. These shares are

fungible - which means that 100 shares of a security are the same as any other 100 shares of that

security.

The investor can dematerialize only those certificates that are already registered in his name and

belong to the list of securities admitted for Dematerialization at NSDL. Shares held in street

name (market deliveries) cannot be dematerialized. If the share certificates that investor wants to

dematerialize do not belong to the list of securities eligible for Dematerialization specified by

NSDL, he can approach the company and request them to sign up with NSDL to make their

securities available for Dematerialization. Odd lot share certificates can also be dematerialized.

No transfer deed is required for dematerializing certificates, the certificates have to be

accompanied by a demat request form (DRF) which can be obtained from DPs.

It is compulsory to mention the ISIN number of the company while filling up the Demat

Request form. This, to a certain extent, ensures that the security mentioned in the Demat Request

Form is the same as the one the investor intends to dematerialize. However, the investor need not

remember cryptic numbers and can take the help of his DP in filling these forms.

Dematerialization is not compulsory. According to the Depositories Act, 1996, an investor has

the option to hold shares either in physical or in dematerialized form. An investor can hold part


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of his holdings in demat form and part of his holdings in the form of share certificates for the

same security.

Although the depository would be a registered owner of securities in the depository, a transaction

involving dematerialized securities would not be considered as benami transactions, the Benami

Transactions (Prohibition) Act, 1988 have been suitably modified to exclude the securities held

by a:

y Depository as a registered ownery DP as an agent of the depository.

Securities bearing the same distinctive numbers as demat securities can still float in the market.

It is a case of forged certificates and normal procedures that are being followed in the physical

market will be used to weed them out. The concerned stock exchanges where the securities are

listed are informed of the details of securities dematerialized and rematerialized. An investor can

dematerialize shares that are pledged with a bank, which is a DP as well.

How To Rematerialize Your Shares.

During a rematerialization process, the request goes from the DP to the R&T agent via NSDL.

The R&T Agent, after processing the request, will print and dispatch the share certificate directly

to you. No transfer duty will be charged to you when you rematerialize your shares. You have

the option of rematerializing your total holdings or part of it. In addition to this, you have the

option to get the certificates in market lot or jumbo lot.

If your name has been wrongly spelt on the certificates given to you after a remat, you can send

it for rectification to the R&T agent along with the relevant documents


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CHAPTER 3

RESEARCH METHODOLOGY


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INTRODUCTION

Todays changing dynamic field, a functional area of management of increasingly important as

compared to other fields. Information is life is the important of any research report, which helpsthe management in minimizing the risk and uncertainty through systematic decision-making.

Research is a systematic and objective for analysis of information relevant to the identification

and solution of any problem in any field.

According to M. Stephenson

The manipulation of things, concept or symbols for the purpose of generalizing to extend,

correct or verify knowledge, whether that knowledge aids in construction of theory or in the

practice of an art.

According to Clifford Woody

Research comprises defining and redefining problems, formulating hypothesis or suggested

solutions, collecting, organizing and evaluating data, making deductions and reaching

conclusions and at last carefully testing the conclusions to determine whether they fit the

formulating hypothesis.

Research inculcates scientific and inductive thinking and it promotes the development of logical

habits of thinking and organization. The role of research in several fields of applied economics,

whether related to business or to the economy as a whole, has greatly increased in modern times.

Research has its special significance in solving various operational and planning problems of

business and industry. Research is equally important for social scientists in studying social

relationships and in seeking answers to various social problem


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DESIGN OF WORKING METHODOLOGY

A research design is the arrangement of conditions for collection analysis of data in a manner

that aims to combine relevance to the research purpose with economy in procedure.

The research designs are used for the study as exploratory and descriptive:

Exploratory research studies are also termed as formulating research studies. The major

emphasis in such studies is on the discovery of ideas in sights. Descriptive research studies are

those studies, which are concerned with describing the characteristics of a particular individual,

or a group.


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A detailed survey of consumers was carried out to find out their preferences for DEMAT A/C the

details of the methodology are stated below:

Type of research Descriptive

Research question Consumer perception for DEMAT

A/C

Sampling technique Convenience sampling

Sample size 100

Sampling area Bhilai

Primary data Response through questionnaires,

personal interviews

Secondary data Through internet, references from

library


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CHAPTER 4

DATA ANALYSIS AND

INTERPRETATION


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Q 1. Are you interested in investment?

Out of 100 respondents 70 peoples are interested in investment. and other are simply save their

money.

70

30

YES

NO

Interested in investment Yes No

No of Respondents 70 30


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Q.2: Do you know about DEMAT a/c ?

Out of 100 respondents 70 are know about demat a/c

70

30

YES

NO

Know about demat a/c Yes NoNo of Respondents 70 30


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Q3. Do you have DEMAT account?

Out of 70 respondents who know about demat a/c ,only 60 persons are having demat a/c

Do you have DEMAT a/c Yes No

No of Respondents 60 10

0

10

20

30

40

50

60

Yes No

60

10


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Q 4. If yes then where they have their DEMAT Account?

A) ICICI.B) Other Company

Name of company or bank where theyhave their DEMAT Account.

ICICI BANK Other company

No of respondents 45 15

Out of 60 who have demat a/c 45 respondents are having demat a/c in ICICI.

0

5

10

15

20

25

30

35

40

45

ICICI others

45

15


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Q.5: Do you think your securities will be safe in ICICI?

45 persons think that securities will be safe in Demat a/cs than any other place as it is totally a

paper less work and there is no case of misplace of it.

Do you think that securities are safe in

DEMAT A/C



45

25

YES

NO


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Q.6 What are the factors that you consider before opening of account in ICICI particular

company?

A) Current Market position B) Goodwill/Brand name

C) Future prospects E) Facilities

17

14

12

22

Opening of account

market position

goodwill

Future prospectus

Facilities

Factors Market Positions Goodwill/

brand name

Future

prospectus

facilities

Opening of

account

17 14 12 22


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Q.7: In your point of view DEMAT a/c is for?

In many persons point of view Demat a/c is generally for two major thinks i.e. they are for easy in

selling securities and helps in earn income & also grow money, as both are scoring equal number

of response. Other also thinks that it helps in purchase in primary market and helps in earn a

stable income.

0

5

10

15

20

25

30

easy selling

securities

helps in fast money

growth

helps in earn and

stable income

purchase in primary

market

15

30

20

5


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Q 8. Do you satisfied with demat a/c and want to continue with ICICI

.

Do you satisfied with DEMAT A/C

and continue with it.

YES NO


OBSERVATION METHOD:-

40

5


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The observation method is commonly used method especially in studies related to behavioral

science. Observation becomes a scientific tool and the method of data collection for the

researcher when it serves a formulated research purpose is systematically planned & recorded.

In this research I made questionnaires for analysis of data and by the help of this data I put

observation method to come to a conclusion.

OBSERVATION TABLE:-

Do you have DEMAT a/c YES NO


Name of company or bank where they

have their DEMAT Account.



Views of

DEMAT a/c isfor

Easy selling

securities

Helps in fast

money growth

Helps in earn and

stable income

Purchase in

primary market

No of

respondents

15 30 20 5

Know about DEMAT a/c YES NO



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Securities is safe in demat a/c

on ICICI

YES NO

No. of respondents 45 25

Factors Market Positions Goodwill/

brand name

Future

prospectus

facilities

Opening of

account

17 14 12 22

By the observation method analyzed datas have given helped to clear that most of the people

likes the ICICI & want to invest in it. So we can conclude that THE PERCEPTION LEVEL OF

CONSUMERS TOWARDS DEMAT ACCOUNT WITH ICICI is good & DEMAT ACCOUNT

service of ICICI is better than others.

Are u satisfied with DEMAT

a/c and want two continue

with it.

YES NO



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CHAPTER 5

FINDINGS


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FINDINGS

Out of 100 respondents 70% of them are know about demat a/c. Out of 100 respondents 70% of them are having demat a/c. Out of 70 respondents 32% of are having demat a/c in ICICI. Most of them are like demat a/c because it helps in fast money growth. Out of 70 respondents 32% peoples are think that there securities are safe in ICICI. Peoples open demat a/c in ICICI due to good market position of ICICI. All of them are satisfied with the services of ICICI.


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CHAPTER 6

CONCLUSION OF THE PROJECT

Conclusion From Analysis Learnt From Analysis


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CONCLUSION

A survey of the people has been conducted to know the PERCEPTION LEVEL OF

CONSUMERS TOWARDS DEMAT ACCOUNT OF ICICI.It is observed that over all people

like to have DMAT account in ICICI. The reason behind this is the services & brand. It is

concluded that most of people wants to open DEMAT Account in ICICI.

LEARNT FROM ANALYSIS

From all the analysis done through questionnaire and other sources of generating knowledgeabout Demat a/c and services provided in it. It is drawn out that where there are merits of

opening a Demat a/c there are certain demerits also.

MERITS:

a) Safe for securities.

From my 8 weeks training and analysis I have found that securities will be safe in Demat a/cs.As by keeping securities in such a/cs investors does not have to bother about their securities

selling and also there is no chances of loss of certificates.

b) Easy in selling securities.Through training I have got a result that Demat a/c helps in selling securities of investors more

easily than any other sources. When a n investor keeps its share in a Demat a/c then its banks

responsibility to sell that security on the action of investor.

c) Fast money growth.In a Demat a/c, money invested on shares / warrants by an investor grows, if it is used by him

frequently as per the norms of share market.


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d) Purchase in primary market.Basically Demat services doesnt provide services of purchasing shares through it, accept the

shares will be purchased in primary market, which helps investors.

e) Paperless work.Before facility given by banks to open a Demat a/c for keeping their shares in such a/cs,

investors keep it as a share certificate which makes some time worry about loss of share

certificate. But through Demat a/c it is no more as in it there is no need of doing paper work.

Now, government has made it compulsory to do trading through Demat a/c only. This means

now any share/warrant can be sold only through Demat a/cs.

DEMERITS:

a) More enquiries.For opening a Demat a/c in bank, they require lots of information about an individual for which

they enquire more and more to them.

b) Charges applied.Charges for opening a Demat a/c in a bank is very high, there are the charges like transaction

charges, statement charges, pledge charges, etc.

c) Risky in terms of operation.As in the stock exchange when their will be fall or rise in the price of shares / warrants it is not

defined, similarly when an investor open a Demat a/c he does not know how long its profit will

be occur.

d) Technical in nature.


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Demat services are fully system based services. Today the world of new technology the

process of Dematerialization is based on it which may new to an individual makes the process

more technical in nature.

e) Lack of basic awareness.Due to its technicality the procedure of handling a Demat a/c creates many problems for an

investor. As it is new an investor it creates unawareness among them.


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CHAPTER 7

SUGGESTIONS


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Suggestions

1. The Brand image of ICICI Ltd. is good in market but according to customer satisfaction the

company has to provide the better service. And also change the Market strategy.

2. They should focus on print and electronic media advertisements to make more people awareabout them.

3. They should provide proper guidance to their customers about Demat.

4. They should provide should offers and facilities to their customers to increase theirattractiveness about Demat.

5. For opening an account they require lots of signatures in a kit, which should be reduced.


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CHAPTER 8

QUESTIONNAIRE


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Name: ____________________________________

Occupation:______________________________________________

Questionnaire for Awareness of DEMAT a/c

Quo.1: Are you interested in investment?

(a) Yes(b) No

Quo.2:Do you kmow about DEMAT A/C?

(a)Yes(b)no

Quo.3: do you have DEMAT A/C?

(a) Yes(b) No

Quo.4: If yes than where they have DEMAT a/c?

(a) ICICI(b) Other

Quo.5 : What are the factors that you consider before open demat a/c in ICICI?

(a) Market positions(b) Goodwill/Brand name(c) Future prospectus(d) Facilities


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Quo.6: Do you think that your securities are safe in ICICI?

(a) Yes(b) No

Quo.7: Are you satisfied and want to continue with ICICI?

(a) Yes(b) No

Quo.8: In your point of view demat a/c is for ?

(a) Easy selling securities(b) Helps in fast money growth(c) Stable income(d) Purchase in primary market

Quo.9: In todays investment management is it necessary to have a DEMAT a/c for investors?

(a) Yes(b) No

Quo.10: How frequently you are going to use your DEMAT a/c?

(a) Daily(b)

Weekly

(c) Fortnightly(d) Monthly


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CHAPTER 9

BIBLIOGRAPHY


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SOURCES OF INFORMATION

y Books: Bhalla V. K., Investment Management, S.Chand.

y Magazines: Intelligent Investor issue dated June 2, 1999: Finding the right DP- Rajesh Gajra. Intelligent Investor issue dated Feb 10, 1999. My byte is stolen-Rajesh Gajra. ICICI bank personal Demat services booklet.

y Internet:y http://www.google.search/saving account.pdf date 25th May.2006.

y http://www.google.search/demat account.pdf date 29th May.2006.

y http://www.icicidirect.com date: 14th June.2006.

y http://www.icicibank.com, date: 20th June.2006.

y http://www.idbibank/demat account.com. date : 30tth June .2006.y http://www.nsdl.com, date: 5th July.2006.