INTRODUCTION

1.1 GENERAL INTRODUCTION

PHYSICAL CERTIFICATES - THE TRADITIONAL WAY

The Indian capital market has seen an unprecedented boom in its activity in the last

decade. We can now boast of a very large investor population and substantial volumes of

trade. However, this surge in activity has brought with it, numerous problems that

threaten the very survival of the Capital market in the long run. A closer inspection of the

problems would reveal that most of them arise due to the intrinsic nature of paper based

trading and settlement.

This century-old system of trading and settlement requires handling of huge volumes of

paper leading to increased costs and inefficiencies. Simultaneously, they expose the

investors to greater risks putting them at a disadvantage. Some of these areas are:

Unwarranted delay in transfer of shares. It takes 30 to 60 days for the investors to get the shares lodged in their name;

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

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

Prevalence of fake certificates in the market;

Mutilation or loss of share certificates in transit;

Increased transaction costs due to stamp duty, fake shares, rejection by registrars, etc.

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This has made the investors, both retail and institutional, wary of entering the Indian

capital market. In this scenario, it was felt that the getting up of a depository and the

introduction of scrip less trading and settlement is imperative for the efficient functioning

of the market.

The Indian capital market has witnessed numerous changes in the recent

past. Historically stock market booms have always resulted in a number of problems for

the lay investor. Sometimes, the problem may magnify them and threatens to engulf the

entire capital market. A close introspection of these problems will reveal that most of

them are due to intrinsic nature of paper based trading and settlement. All this may have

driven away many potential investors and Foreign Institutional Investors.

Dematerialization of shares is looked upon as the remedy for the ‘paper’ based problems.

With effect from august 19, 1998 SEBI has granted certificate of registration of

Central Depository Services (I) Ltd. (CDSL).

Yet even with demat, from the point of view of investors there are numerous

problems. Here Wallet Watch introduces you to setting up of a demat account and

introduction of scrip less trading and settlement. There are numerous benefits of this scrip

less trading and settlement, which Wallet Watch has discussed in detail.

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COMPANY PROFILE:

2.1 INTRODUCTION ABOUT THE COMPANYI

Even as the European and American stock markets reckon with the changes brought

about by the Internet and IT/telecom advances, the Indian stock market has quickly

moved to global standards.

The sheer breadth of the changes since the National Stock Exchange started

operations in 1994 and with the Securities and Exchange Board of India (SEBI) also

driving the changes in the market system, have enabled the Indian market to move well

ahead in just five years.

Even as online automated trading and better clearing and settlement mechanisms

have been put in place, perhaps, the most significant change in the Indian market has

been the coming of paperless trading; it may well be a precursor to the next big changes –

rolling settlements and Internet trading. But the push towards paperless trading stands out

even in a decade when the market landscape has changed beyond recognition.

Dematerialisation (holding and trading securities in paperless mode) was an

alien concept in India before 1995; in five years, large quantities of paper have been

flushed out of the system. Since the entry of the foreign institutional investors (FIIs) and

online trading, the old system, laden with paperwork at every conceivable stage, was out

of place in an otherwise fast trading environment.

As the FIIs complained about the paperwork as a major constraining

factor, the government and SEBI took notice. The requisite legislative changes were put

in place quickly - the Depositories Act, 1996 was passed and the NSE, with the UTI and

the IDBI, set up the National Securities Depository Ltd (NSDL).

But the depository concept did not gain popularity; the FIIs which

had clamoured for its introduction, now ignored it. The reason: Lack of liquidity. But,

unless the institutional investors stepped in, there could be no liquidity. This stalemate

frustrated the push for a paperless environment.

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Until SEBI stepped in, that is.

With regulatory pushes SEBI, in phases, made demat trading in stocks

mandatory for institutions first and, then, for all investors. Mandatory paperless trading,

forced the FIIs to dematerialise their holdings quickly.

As a consequence of SEBI's action, most major stocks are traded in the

paperless mode now. The second phase will involve some 200 stocks in a few months

time. The effect of SEBI's action is evident from NSDL's statistics. A total of 698

companies, with a market capitalisation of Rs. 7,37,300 crores (almost 80 per cent of the

market capitalisation of all listed stocks), is enrolled with the NSDL.

With 13.65 billion shares in the demat mode, nearly 19 million investor

accounts, and securities valued at Rs. 3,96,800 crores ($91 billions) actually

dematerialised, the concept of dematerialisation can be said to have taken roots. If the

regulatory direction is any indication, more paper will be flushed out of the system in the

next two years.

The costs of dematerialisation have declined as the NSDL slashed charges as

volumes expanded and the competition _ from the Central Depository Services Ltd

(CSDL) floated by the BSE _ started in 1999 second half. A series of measures by SEBI

and NSDL also helped ease the strain faced by retail investors.

From a long-term perspective, demat in India is of considerable

significance. Not only has the general trading environment improved and quickened,

volumes too have perked up, even in the demat segment. With demat taking off, there is

now scope for an improvement in the quality of investor services.

As a consequence of dematerialisation, the Indian market is also well

prepared for web-based trading though the quality of telecom infrastructure and

inadequacies in the banking system-stock exchange linkages may cause delays. Notably,

with regard to the thrust towards paperless trading, the Indian market managed in three

years what took even the US much longer.

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With a high degree of dematerialisation a reality, the stage is set for rolling settlements

and web-based trading. Once these are in place, the Indian market will have moved closer

to the standards in advanced markets, such as the US. And paperless trading may well be

the catalyst for such a rapid advancement.

This is the concluding week of Business Line's 20-week series Markets

– a Century in Retrospect, which featured the most significant market- and corporate-

related events. Other, equally significant, specific topics of a micro-nature will be

published through the year.

* As conducted the study of S. Vaidya Nathan and BL Research Bureau

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2.2 HISTORY OF THE ORGANIZATION:

The dematerialized form of shareholding and the depository mode of

trade (scrip less trade) have been in operation in developed financial markets for over 15

years. In India, the first depository commenced operation a decade back and is relatively

new. The Indian financial market is in need of both scrip-based and scrip less trade, but

the investing community, which is used scrip-based trade, is bound to take some time to

accept the latter. The scrip less trading, till now a domain of the western world,

institutional investors and GDR holders is now mandatory even for small investors. All

those who hold physical share certificates have to get them dematerialized. If they do not,

they will be forced to do so at the time of sale.

The countless numbers of conservative Indians have to digest it,

whether they like it or not. First, the institutional investors succumbed. Then the high net

worth individuals, trading in more than a certain numbers of shares, were forced to give

in. now, it is the turn of the small investors of select-companies.

With their share certificates being replaced by small slips and receipts,

naturally the average investors will have their share of fears and apprehensions. It is

necessary to educate and convince these investors about the benefit of Demat rather than

forcing them to take part in the game.

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2.3 Company’s Vision:

To make ICICI Direct the dominant online share trading by world class people and services.

This we hope to achieve by:

Understanding the needs of customers and offering them superior product and

service.

Leveraging technology to service customers quickly and conveniently.

Developing and implementing superior risk management and investment strategic

to offer sustainable and stable return to our shareholder.

Providing and enabling environment to foster growth and learning for our

employees

2.4 Company’s mission:

To judged by their sales and earnings growth rates than on the absolute value of their

sales and earnings. Look for companies that consistently grow faster than there peers.

Investors prefer companies that increase profit margins -- the percentage of sales

that they keep -- every year. This is accomplished either by lowering expenses or raising

prices. Look for companies that consistently find ways to squeeze more profits out of

sales than their peers.

The financial health of a company is dependent on a combination of

profitability, short-term liquidity and long term liquidity. Companies, which are

profitable, but have poor short term or long term liquidity measures, do not survive the

troughs of the trade cycle

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2.5 OBJECTIVES OF THE STUDY

Study of ICICI Direct.com (online share trading)

Study of dematerialization in ICICI Capital Ltd.

Customers satisfaction and awareness of ICICI Capital Services Ltd.

ICICI Capital Services Ltd., is depository participant (DP) and it is

providing the financial services to the share holders and various other DP’s also

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

existing customers of ICICI Capital Ltd. and to attract new customers knowing the

customers need and preferences and expectation is very important. The study involves

knowing the expectation and satisfaction level of ICICI Capital Ltd. customers.

2.6 PRODUCT PROFILE

DE-MAT

The dematerialized form of shareholding and the depository mode of trade (scrip less

trade) have been in operation in developed financial markets for over 15 years. In India,

the first depository commenced operations a decade back and is relatively new. The

Indian Financial Markets is in need of both scrip-based trade, but the investing

community, which is used to scrip-based and scrip less trade, is bound to take some time

to accept the latter. The scrip less trading, till now a domain of the western world,

institutional investors and GDR holders is now mandatory even for small investors. All

those who hold physical share certificates have to get them dematerialized. If they do not,

they will be forced to do so at the time of sale.

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A process by which the physical certificates of an investor are taken back by the

company / registrar and actually destroyed and an equivalent number of securities are

credited in the electronic holdings of the investor.

Offers services to clients dealing in Government securities through the SGL A/C. besides

holding the securities, ICICI Capital Services Ltd.

Provides records update based on the transactions made by the clients.

Collects and credits the benefits and proceeds from sale to the clients’ account;

and

Supplies periodical reports on the transactions and holding of the clients.

TRADING:

Next function activates when an investor buys or sells in the market.

Buying:

1. An investor gets order executed and makes payment to the broker.

2. Investor instructs his Depository Participant to expect credit on settlement day.

Broker instructs his DP to debit his Clearing Member account on settlement day.

3. Before settlement day Broker makes payment to clearinghouse through Clearing

Bank.

4.On settlement day Clearing house releases shares to broker’s Clearing Member account

which is then transferred to investors account through NSDL (National Securities

Depository Limited). Investor gets credit in his account.

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SELLING:

1. An investor gets order executed.

2. Investor instructs his Depository Participant to debit his account with immediate

effect. The shares move from investors account to Brokers Clearing Member account

via NSDL. A Broker clearing member accounts is credited.

3. Before settlement day broker transfers shares from his clearing member account to

Clearinghouse via NSDL. His account is debited.

4. On settlement day Broker receives payment from clearing house which he passes on

to the investor.

ICICIDirect.com

ICICIDirect.com is a truly online share-trading site. This means that from the time you

punch in a buy or sell trade on your computer to the final settlement in your account,

everything happens completely online. The 3-in-1 e-invest account integrates your

brokerage, bank and one or more depository accounts to make sure that you can do the

otherwise cumbersome share trading from the comfort of your home or office, at

absolutely any time of the day…or night.

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HOW CAN ONE OPEN AN ACCOUNT IN DEMAT?

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

opening form must be supported by copies of any one of the approved documents to

serve as proof of identity (POI) and proof of address (POA) as specified by SEBI.

Besides, production of PAN card in original at the time of opening of account has been

made mandatory effective from April 01, 2006.

All applicants should carry original documents for verification by an

authorized official of the depository participant, under his signature.

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

standard format, which details rights and duties of investor and DP. DP should provide

the investor with a copy of the agreement and schedule of charges for their future

reference. The DP will open the account in the system and give an account number,

which is also called BO ID (Beneficiary Owner Identification number).

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

SEBI has rationalised the cost structure for dematerialisation by removing account

opening charges, transaction charges for credit of securities, and custody charges vide

circular dated January 28, 2005.

Further, SEBI has vide circular dated November 09, 2005 advised that with

effect from January 09, 2006, no charges shall be levied by a depository on DP and

consequently, by a DP on a Beneficiary Owner (BO) when a BO transfers all the

securities lying in his account to another branch of the same DP or to another DP of the

same depository or another depository, provided the BO Account/s at transferee DP and

at transferor DP are one and the same, i.e. identical in all respects.   In case the BO

Account at transferor DP is a joint account, the BO Account at transferee DP should also

be a joint account in the same sequence of ownership.

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2.7 ORGANIZATION STRUCTURE

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Anil Kaul, ceo – Retail

Ashish Kaul, marketing & analysist

Rajendra Sharma, equity Analysist & MIS

Rohit Dhabolkar, marketing & Branding

Sanjiv Saraff, product Manager

Abhijit Ghosh, Sales zonal heads

Dharmesh dixit, project & operation.

Prasanan keshavan, Customer service & operation

Raman Addanki, Legal risk & Complain

Manoj kabra, Audit & cost control.

Harendra Kumar, Research

Joseph Abraham, HR.

Shikha sing, Compensation & Benefits.

Sujata kapoor, Talent Management.

Aloma Sing, Strategic & Sourcing.

Malachi Lopes, HRIS

Sanjita Chougle, Payroll.

Santosh Nayak, Administration.

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Profile of the Organisation

3.1 DEPARTMENT/FUNCTIONAL AREAS

Infrastructure financing, corporate financing and retail have been the strong pillars of

ICICI's growth. They expect these to remain thrust areas in the future too. The financial

institution sees significant opportunities in the power sector, and in the rapid de-

regulation of the Telecom sector. On the retail side, ICICI has established a retail

franchisee through a physical presence across 42 cities. Its retail thrust has been on the

planks of technology enabled low cost distribution channels like the Internet, Call centers

and ATMs.

It occupies the number one position in automobile financing (over 20% of the market

share), number one in credit cards on an incremental basis. It also has a growing presence

in home finance and on-line trading.

ICICI BANK

ICICI Bank is a commercial banking outfit set up by the ICICI Group. The Bank was

registered a banking company on January 5th, 1994 and received its banking license from

the Reserve Bank of India on May 17th, 1994. The Bank has an authorized capital of INR

300crore (USD 75.96 million), of which subscribed and paid-up capital is INR 165 crore

(USD 41.78 million). The first ICICI Bank branch was started in Madras in June 1994.

The branches are fully computerized with state-of-the-art technology and systems. All of

them are fully networked through V-SAT (Satellite) technology. The Bank is connected

to the international SWIFT network since March 1995. ICICI Bank offers a wide

spectrum of domestic and international banking services to facilitate trade, investment,

cross-border business, and treasury and foreign exchange services. This is in addition to a

whole range of deposit services offered to individuals and corporate bodies. ICICI Bank’s

Infinity was the first Internet banking service in the country, and a prelude to banking in

the next millennium. Currently the Bank has around 150,000 customers.

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CICI VENTURE FUNDS MANAGEMENT COMPANY LIMITED

With the recent spurt in entrepreneurship in the country, venture capital and private

equity capital financing are fast attaining a role of prominence. Uniquely positioned to

take the Indian entrepreneur further is ICICI Venture Funds, the wholly owned subsidiary

of ICICI, with its keen understanding of the Indian Financial Markets, entrepreneurial

ethos, access to global capital and a network through influential global alliances. Strong

parentage and affiliates provide ICICI Venture with access to a broad spectrum of

financial and analytical resources. An affiliation with (Trust Company of the West)

provides a platform for networking Indian Companies to global markets and technology.

ICICI Venture Funds currently manages / advises 11 Funds aggregating US$ 400 million,

making it the most significant private equity investor in the country. The investment

experience of ICICI Venture’s professionals is the foundation its strengths and success in

several areas of investing. ICICI Venture seeks to invest in opportunities where its

network through ICICI and TCW can create value for all involved. ICICI Venture’s

primary investment objective is capital investment through investments by way of equity

or equity-related securities in unlisted companies with significant growth potential. ICICI

Venture’s investments span a broad spectrum of industries and stages of development,

the investment focus being on

Information Technology

Biotechnology and Life Sciences

Media and entertainment

Retail Services

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ICICI SECURITIES AND FINANCE COMPANY LIMITED

Formed in 1993 when ICICI’s Merchant Banking Division was spun off into a new

company, I-SEC today are India’s leading Investment Bank and one of the most

significant players in the Indian capital markets. Its client list includes some of the best

known, most respected names in Indian business and industry, and I-SEC offers them

what are probably the widest, most in-depth range of services in the market, with the

highest standards of professionalism. Backed by a strong distribution network, I-SEC is

acknowledged to be at the forefront of all new developments in the Indian debt market. I-

SEC Research Reports, Compendia, Updates, I-BEX and sovereign Bond Index, have

become industry standards, sought after by finance, business and reputed publications

alike. The Project Finance Group has helped take strategic projects from the drawing

board to financial closure, leveraging the expertise of parent organization. I-SEC has also

executed several assignments in M & A, including business valuations, spin-offs and

mergers, for both domestic and overseas clients. The range of products offered by i-SEC

includes:

Corporate Finance – Mergers and Acquisitions, Equity, Bidding (especially for

Telecom Projects)

Fixed Income – Primary Dealership, Debt Research

Equities – Lend management, Underwriting, Syndication, Private Equity placement,

Sales, Trading, Broking, Sectoral and Company Research I - SEC

Continues to sustain a steady rate of growth by offering the most extensive range of

services combined with unrivalled standards of professionalism.

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ICICI BROKERAGE SERVICES LIMITED

Set up in March 1995, ICICI Brokerage Services is a 100% subsidiary of I-SEC. It

commenced its securities brokerage activities in February 1996 and is registered with the

National Stock Exchange of India Limited and The Stock Exchange, Mumbai. We are a

joint venture between ICICI and the leading financial services provider in India, and

prudential plc of U.K., one of the finest Life insurance companies in the world. Together

we provide you with an extensive range of insurance products to suit your various needs

at various life stages. We aim to keep you covered, at every step in life. Their policies are

need-specific and address particular age groups. This means that no matter where in life

you are, we offer specific products to suit your needs for savings, protection and

retirement. Our products can be categorized into the following:

Saving plans

Protection plans

Retirement plans

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ICICI PERSONAL FINANCIAL SERVICES LIMITED

ICICI Personal Financial Services Limited (ICICI PFS), formerly ICICI-Credit, was one

of the first four companies to obtain registration as a Non-Banking Financial Company

(NBFC) from the Reserve Bank of India (RBI) on September 10, 1997 under the new

section 45IA of the Reserve Bank of India Act, 1934. During the year 1998-99, there was

a significant shift in the Company’s operation from leasing to hire purchase to

distribution and servicing of all rental products for the ICICI Group. It is now a focal

point for marketing and distribution of all rental asset products for ICICI, including auto

loans, consumer durable finance and other financial products. The Company has thus

become part of ICICI’s retail strategy aimed at offering a comprehensive range of

products and services to retail customers. In view of this reorientation of the business, the

name of the Company was changed from ICICI Credit Corporation to ICICI Personal

Financial Services Limited (ICICI PFS) effective March 22, 1999.

ICICI CAPITAL SERVICES LIMITED

ICICI Capital Services Ltd. was incorporated in the name of SCICI Securities Ltd. on

September 24, 1994 as a wholly owned subsidiary of erstwhile SCICI Ltd. with the

objective of providing stock broking services to the institutional clients and undertaking

activities such as underwriting, primary market placements & distribution industry &

company research etc. After the amalgamation of SCICI with ICICI effective from April

1, 1996, resulting in the change of the name. The company is mandated, under review by

ICICI, to carry out on its behalf the retail resource raising activities and to provide front

office services related to all retail and semi retail liability products of ICICI. The

company also operates the network of ICICI Centers being set up by ICICI. As on date

the company has set up 91 centers across the country.

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ICICI INFOTECH

ICICI InfoTech is a leading provider of end-to-end IT solutions. We have an in-depth

experience of having worked on varied technologies with leading corporations

worldwide. Our service portfolio includes the following:

IS & IT Consulting

Software Design and Development

Enterprise Application Integration

Value Chain Management Solutions (SCM, CRM etc.)

Application Re-engineering and Management Knowledge Management Solutions Embedded System Applications Technology Incubation, IT-enabled Services & IT Outsourcing

ICICI Capital Ltd.

Its products are

RBI Bonds E-invest (ICICI Direct.com) Fixed Deposits Mutual Funds Bonds Demat Equity IPO

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ICICI DIRECT.COM (ONLINE SHARE TRADING):

ICICI Direct.com is a truly online share-trading site. Which means that from the time

you punch in a buy or sell trade on your computer to the final settlement in your account,

everything happens completely online? The 3-in-1 e-invest account integrates your

brokerage, bank and one or more depository accounts to make sure that you can do the

otherwise cumbersome share trading from the comfort of your home or office, at

absolutely any time of the day or night

3.2 PERFORMANCE AND OPERATIONS

The Sales turnover of the Company during the year was Rs.2,602 million.

There is a decrease of 4% from the previous year. Decline in the sale of Carburettors for

two wheelers and four wheelers had contributed to the overall sales downturn though the

Company has improved the sale of MPFI parts to passenger cars.

The profit after tax of the Company for the year under review is Rs.377

million Due to inclusion of an extraordinary profit of Rs.250 million on sale of

investments, the Profit after Tax has registered an increase of 42% compared to previous

year. The profit from the manufacturing activities of the Company is lower mainly due to

a. price reduction offered to customers

b. increase in the input and raw materials cost

c. a particular customer in the two wheeler market witnessed a steep decline in the sale of

a model for which UFSL is supplying the Carburettors

Key Ratios 2005-06 2004-05

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Net Profit Ratio (PAT/Sales) 14.49 9.49 Net Profit Ratio (PAT/Net worth) 22.21 18.13

Current Ratio (Current Assets/Current Liabilities) 1.67:1 2.55:1 Debt - Equity Ratio

0.47:1 0.04:1 Debtors Turnover (Debtors/Gross Sales) 1.18 Months 1.25 Months

Creditors Turnover (Creditors/Purchases)1.86 Months 1.59 Months Dividend Pay-out

Ratio 17 15.37

. 3.3 SWOT ANALYSIS OF THE COMPANY:

Strengths

1. Management philosophy and commitment to maximize shareholders returns

2. Upgraded product design and development facilities to develop new products and aid diversification

3. Ongoing activities to support up gradation of operational performance and rise in productivity

4. Team of talented and committed professionals available to improve companies performance Weakness

1. Competition from cheap imports

2. Low customer base

Opportunities

1. UFSL has initiated development of products for diesel application. This will provide tremendous scope for diversification and growth

2. Acquisition of AMTEC to provide opportunities to access global OEMs

3. Opportunity to support AMTECs operations by supplying products from India

4. The introduction of new emission norms will provide UFSL opportunity to develop injection systems and thereby upgrade the status of the company from product to system supplier.

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Threats, Risks & Concerns

1. Constant pressure to be cost competitive to meet customer expectations

2. Relentless pressure to maintain profitability due to rising input/raw material prices

3. Increasing popularity of alternative fuel vehicles, such as Hybrid, Hydrogen powered, CNG and LPG vehicles poses new challenges for the company

.

3.4 FUTURE PROSPECTS AND PLANS OF THE ORGANIZATION

For ICICI the past half has been a trying period more so because of the adverse

environmental conditions such as the depressed equity markets and the volatile currency

markets. However, its retail thrust and a perceptible shift in financing from

manufacturing projects to corporate finance will put it in good stead for the quarters to

come. Its growing importance in the telecom and infrastructural sectors, which have huge

potential, will be a key driver of growth for the future

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3.5 ACHIEVEMENT AND AWARD

Winning is a habit that is assiduously cultivated at ICICI Securities Limited (i-SEC). Be

it deals, mandates or awards, we manage them all in our quite and efficient way.

For us winning awards is a matter of pride and honour. Each new award is a

manifestation of our hard work and commitment to our clients.

Since inception, i-SEC’s expertise has been time and again widely recognized by both

domestic and international agencies.

Our Fixed Income team for the last two years (CY 2004 and 2005) has been adjudged the

“Best Bond House” in India by both Asiamoney and Finance Asia. The equities team was

adjudged the ‘Best Indian Brokerage House-2003’ by Asiamoney. The Corporate Finance

team, according to Bloomberg topped the M&A league tables in 2003.

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PROBLEM ANLYSIS:

4.1 STATEMENT OF THE PROBLEM

Online trading and Demat are the two emerging concepts in the stock market.

It involves personal factors, technical factors, business factors and economic factors. The

interplay of these factors on stock market requires a deep study about the pattern process

and procedures and performance. This study is intended to identify the various concepts

about demat and the online trading and its way of functioning

ICICI provisions are not exposing to its customers extensively. Hence in this report an

attempt has been made to link the potential customers and the ICICI Direct .Com

4.2 OBJECTIVES OF THE STUDY

Every company has a particular goal. A study without objectives can not reach the

destination. My project work programme was also directed to some particular targets

and the main objective of the study are as bellow;

Study of ICICI Direct.com (online share trading)

Study of dematerialization in ICICI Capital Ltd.

Customers satisfaction and awareness of ICICI Capital Services Ltd.

4.3 SCOPE OF THE STUDY:

Globalization of the financial market has led to a manifold increase in investment. New

markets have been opened; new instruments have been developed; and new services have

been launched. Besides, a number of opportunities and challenges have also been thrown

open.

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RESEARCH DESIGN OF THE STUDY

The study is based on survey technique. The study consists of analysis about customer’s

awareness and satisfaction of ICICI Capital Ltd. For the purpose of the study customers

100 are picked up and their views solicited on different parameters. The methodology

adopted includes

Questionnaire

Random sample survey of customers

Discussions with the concerned

Personal interviews and informal discussions were held with ICICI Capital Ltd.

customers to ascertain the awareness and satisfaction level. Further applying simple

statistical techniques has processed the data collected.

SOURCES OF DATA :

Primary data: Questionnaire

Secondary data: are published materials such as periodicals, journals,

news papers, and website.

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SAMPLING PLAN:

Sampling since segment wise investors in ICICI Capital Ltd. are not available for the

overall customers was considered for the study. 100% coverage was difficult within

the limited period of time. Hence sampling survey method was adopted for the

purpose of the study.

Population: (universe) customers of ICICI Capital services Ltd.

Sampling size: A sample of hundred was chosen for the purpose of the study. Sample

considers of small investor, large investors and traders of ICICI Capital Ltd.

Sampling Methods: Probability sampling requires complete knowledge about all

sampling units in the universe. Since due to time constraint non-probability sampling

was chosen for the study.

Sampling procedure: From large number of customers of ICICI Ltd. were randomly

picked up.

Field Study: directly approached respondents.

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4.4 DATA COLLECTION INSTRUMENT

COLLECTION OF DATA THROUGH QUESTIONNAIRES:

The data collected for the study purpose is through questionnaires. Hundred customers of

ICICIdirect.com have been selected randomly for the study purpose and then the

information revealed from the customers is analyzed and interpreted in the study.

ORGANISATION OF FIELD WORK

Initial field work has done for pre testing tools for data collection. The

data is collected through the direct interaction with the ICICI’s customers through

questionnaires answered by them. hundred customers of ICICI were randomly chosen

for the purpose of the study in Bangalore

.

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4.5 LIMITATION OF STUDY

Since sample size is only 100, which is not a true representative of the population as a

whole.

Since segment wise investors is not available in ICICI Capital Ltd. Overall concept is

taken for the study.

Information is partly based on secondary data and hence the authentic of the study

can be visualized and is measurable.

Level of accuracy of the results of research is restricted to the accuracy level with

which the customers have given their answers and the accuracy level of the answers

cannot be predicted.

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DATA ANALYSIS AND INTERPRETATION

Table No. 5.1 Customers’ preference over other depository services in ICICI Direct.com

Attributes No. of Persons Percentage

Quality Service 50 50

Safety 20 20

Reach 12 12

Vast variety of Service 4 4

Nothing in Particular 14 14

Chart No. 5.1 Percentage of customers’ preference over other depository services in ICICI Direct.com.

From the above showing statistics it is observed that in the survey 50% customers justify that ICICI capital Ltd. providing quality services as compare to other depository services

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50%

20%

12%4%

14%

Quality Service Safety Reach

Vast variety of Service Nothing in Particular

Table No. 5.2 Different types of investors having ICICI Direct.com.

Small Investors Long term investors Traders

5832

10

Chart No. 5.2 Percentage of investors having ICICI Direct.com.

The above table shows that out of 100 customers, 58 customers are small investors and

32 customers are long term investors.

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58%32%

10%

Small Investors Long term investors Trades

Table No. 5.3 Number of availed of the services in ICICI Direct.com.

Schemes/Services No of Persons Percentage

ICICI Direct.com 32 32

Settlement 9 9

Transmission of Securities 23 23

New Services

Sell 'N' Cash 5 5

Mutual funds 31 31

Chart No. 5.3 Percentage of availed of the services in. ICICI Direct.com

32%

31%

23%

5% 9%

ICICIDirect.com

Settlement

Transmission ofSecurities

Sell 'N' Cash

Mutual funds

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Table No. 5.4 Number of customers aware of services offered by ICICI Capital Ltd.

Schemes/Services No of Persons Percentage

ICICIDirect.com 100 100

Settlement 70 70

Transmission of Securities 64 64

New Services

Sell 'N' Cash 56 56

Mutual Fund 18 36

Loans Against de-mat shares 24 48

Chart No. 5.4 Percentage of customers aware of services offered by ICICI Capital Ltd.

No of Persons

26%

19%17%

15%

10%

13%

ICICIDirect.com

Settlement

Transmission ofSecurities

Sell 'N' Cash

Mutual Fund

Loans Against dematshares

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Table No. 5.5 Customer’s awareness of the new services offered by ICICI Direct.com

Through ICICI Direct.Com

News Paper/ Magazines

Broker Agents Others

50 10 8 32 0

50% 10% 8% 32% 0

Chart No. 5.5 Percentage of customer’s awareness of the new services offered by ICICI Direct.com

According to the survey 50% customers know the services through ICICI and 32%

through ICICI agent

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34%

12%14%

34%

6%

Through ICICI Ltd. News Paper/Magazines Broker Agents Others

Table No. 5.6 Customer’s first source of awareness

Through ICICI Direct.Com

News paper / Magazines

Broker Agents Others

34 12 14 34 6

34% 12% 14% 34% 6%

Chart No. 5.6 Percentage of customer’s first source of awareness

According to the survey the first source of information is ICICI Direct.Com itself and the

agents.

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Table No. 5.7 Customers’ satisfaction of the services of ICICI Direct.Com

SatisfiedMostly Satisfied

Neither Satisfied / Unsatisfied

Mostly Unsatisfied

Unsatisfied

64 24 10 2 0

64% 24% 10% 2% 0

Chart No. 4.7 Percentage of customers’ satisfaction of the services of ICICI Direct.Com

According to survey 64% of customers are satisfied with the services of ICICI

Direct .com and 24% are mostly satisfied. Then we can say that ICICI Direct.Com offers

quality service that touches customers’ satisfaction level.

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64%

24%

10%

2%

0%

Satisfied Mostly Satisfied Newither Satisfied/ Unsatisfied Mostly Unsatisfied Unsatisfied

Table No. 5.8 Customers’ satisfaction of the Demat services of ICICI Direct.Com

SatisfiedMostly Satisfied

Neither Satisfied / Unsatisfied

UnsatisfiedMostly Unsatisfied

46 22 16 12 4

46% 22% 16% 12% 4%

Chart No. 5.8 Percentage of customers’ satisfaction of the Demat services of ICICI Direct.Com

According to the survey 46% are satisfied with the Demat Services of the ICICI Capital

Ltd. 12% of the customers are not satisfied. So we can say ICICI Direct.Com offers

quality services in Demat section also.

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46%

22%

16%4%

12%

Satisfied Mostly Satisfied

Neither Satisfied/ Unsatisfied Mostly Unsatisfied

Unsatisfied

Table No. 5.9 Customers’ satisfaction with the purchase and sales of ICICI Direct.Com

SatisfiedMostly Satisfied

Neither Satisfied/ Unsatisfied

Mostly Unsatisfied

Unsatisfied

40 26 14 8 12

40% 26% 14% 8% 12%

Chart No. 5.9 Percentage of customers’ satisfaction with the purchase and sales of ICICI Direct.Com

According to the survey only 40% of the customers are satisfied with Purchase and Sales

of ICICI Direct.Com. So we can say purchase and sales section ICICI Direct.Com

unsatisfied the customers.

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40%

26%

14%

8%

12%

Satisfied Mostly Satisfied

Neither Satisfied/ Unsatisfied Mostly Unsatisfied

Unsatisfied

Table No. 5.10 Customers’ satisfaction with the transmission of securities of ICICI Direct.Com

SatisfiedMostly Satisfied

Neither Satisfied/ Unsatisfied

Mostly Unsatisfied

Unsatisfied

30 22 32 12 4

30% 22% 32% 12% 4%

Chart No. 5.10 Percentage of customers’ satisfaction with the transmission of securities of ICICI Direct.Com

According to the survey 30% of the customers are satisfied and 22% of the customers are

mostly satisfied with the transmission of securities of ICICI Direct.Com. So we can say

that ICICI Direct.Com unsatisfied the customers in case of transmission of securities of

the customers.

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30%

22%32%

12% 4%

Satisfied Mostly Satisfied Neither Satisfied/ Unsatisfied Mostly Unsatisfied Unsatisfied

Table No. 5.11 Customers’ satisfaction with the sell of their securities in cash

SatisfiedMostly Satisfied

Neither Satisfied/ Unsatisfied

Mostly Unsatisfied

Unsatisfied

70 20 10 0 0

70% 20% 10% 0 0

Chart No. 5.11 Percentage of customers’ satisfaction with the sell of their securities in cash

According to the survey 70% of the customers are satisfied with the sell in cash system of

ICICI Capital Ltd. So we can say that ICICI Direct.Com satisfied the customers with the

sell of customers’ securities in cash.

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70%

20%

10%0%

0%

Satisfied Mostly Satisfied Neither Satisfied/ Unsatisfied Mostly Unsatisfied Unsatisfied

Table No. 5.12 Customers’ satisfaction with the mutual fund service of ICICI Capital Ltd.

SatisfiedMostly Satisfied

Neither Satisfied/ Unsatisfied

Mostly Unsatisfied

Unsatisfied

38 34 24 4 0

38% 34% 24% 4% 0

Chart No. 5.12 Percentage of customers’ satisfaction with the mutual fund service of ICICI Capital Ltd.

According to the survey, 38% of the customers are satisfied with the Mutual fund

services of ICICI Capital Ltd. So we can say that customer’s tendency is that they believe

that Mutual Fund and Shares are performing as the same in the primary and secondary

market and the mutual fund is the safest way to invest in the market.

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38%

34%

24%

4%0%

Satisfied Mostly Satisf ied Neither Satisf ied/ Unsatisf ied Mostly Unsatisf ied Unsatisf ied

Table No. 5.13 Customers’ satisfaction with the trading demos provided by the ICICI Capital Ltd.

SatisfiedMostly Satisfied

Neither Satisfied/ Unsatisfied

Mostly Unsatisfied

Unsatisfied

52 24 20 4 0

52% 24% 20% 4% 0

Chart No. 5.13 Percentage of customers’ satisfaction with the trading demos provided by the ICICI Capital Ltd.

According to the survey 52% of the customers are satisfied with the Trading Demos that

are conducted by the ICICI Capital Ltd. 24% are mostly satisfied. So we can say that

ICICI customers are attending the demo programmes and the ICICI employees can able

to solve the queries of the customers.

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52%24%

20%4%

0%

Satisfied Mostly Satisfied

Neither Satisfied/ Unsatisfied Mostly Unsatisfiede

Unsatisfied

Table No. 5.14 Customers’ satisfaction with the periodic receipts and holding statements of ICICI Direct.Com

SatisfiedMostly Satisfied

Neither Satisfied/ Unsatisfied

Mostly Unsatisfied

Unsatisfied

20 18 16 32 14

20% 18% 16% 32% 14%

Chart No. 4.14 Percentage of customers’ satisfaction with the periodic receipts and holding statements of ICICI Direct.Com

According to the survey, the 20% customers are satisfied and 18% customers are mostly

satisfied with the periodic receipts and holding statements of the ICICI Direct.Com. So,

we can say that most of the customers are unsatisfied with this service of ICICI

Direct.Com.

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20%

18%

16%

32%

14%

Satisfied Mostly Satisfied Neither Satisfied/ Unsatisfied Mostly Unsatisfied Unsatisfied

Table No. 5.15 Customers’ satisfaction with the telephonic enquiries of ICICI Capital Ltd.

SatisfiedMostly Satisfied

Neither Satisfied/ Unsatisfied

Mostly Unsatisfied

Unsatisfied

16 48 12 14 10

16% 48% 12% 14% 10%

Chart No. 5.15 Percentage of customers’ satisfaction with the telephonic enquiries of ICICI Capital Ltd.

According to the survey, 48% of the customers are mostly satisfied and 16% of the

customers are satisfied. So, we can say that most of the customers are satisfied with the

telephonic service of ICICI Capital Ltd.

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16%

48%12%

14%10%

Satisfied Mostly Satisfied

Neither Satisfied/ Unsatisfied Mostly Unsatisfied

Unsatisfied

Table No. 5.16 Customers’ satisfaction with the co-operation by the staff of ICICI Capital Ltd.

SatisfiedMostly Satisfied

Neither Satisfied/ Unsatisfied

Mostly Unsatisfied

Unsatisfied

32 46 4 14 4

32% 46% 4% 14% 4%

Chart No. 5.16 Percentage of customers’ satisfaction with the co-operation by the staff of ICICI Capital Ltd.

According to the survey, 32% of the customers are satisfied and 46% of the customers are

mostly satisfied with the co-operation by the staff of ICICI Capital Ltd. So, we can say

that most of the customers are satisfied with the co-operation by the staff of ICICI Capital

Ltd.

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32%

46%

4%

14% 4%

Satisfied Mostly Satisfied Neither Satisfied/ Unsatisfied Mostly Unsatisfied Unsatisfied

Table No. 5.17 Customers’ satisfaction with the tariff structure of ICICI Direct.Com

Very High High Reasonable Low Very Low

12 14 72 2 0

12% 14% 72% 2% 0

Chart No. 5.17 Percentage of customers’ satisfaction with the tariff structure of ICICI Direct.Com

According to the survey, the tariff structure of ICICI Direct.Com is reasonable.

Customers told me that the brokerage of 0.75% is reasonable because it is the only

organization which deals with the primary and secondary market both. ICICI Direct.Com

also has many investment options than any other organization.

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12%13%

73%

2%0%

Very High High Reasonable Low Very Low

Table No. 5.18 Customers’ satisfaction when dealing with the problems through ICICI Direct.Com

Schemes / Services No of Persons PercentageFrequent reminders are given to ICICI Direct.com for update the information

24 24%

Irregular receipt of Holding / Transaction statements

22 22%

Improper format of Holding / Transaction statements

16 16%

Improper attention given to the enquiries

14 14%

Billing problem 10 10%

Inadequate information 14 14%

According to the survey, 12 persons are not satisfied with the frequent reminders which

are given to the ICICI Direct.Com for update the information, 11 persons are not satisfied

with the irregular receipt of holding or transaction statement, 8 persons are not satisfied

with the format of holding or transaction statements, 7 persons are not satisfied attention

given to the enquiries, 5 persons are not satisfied with the billing system and 7 persons

are not satisfied with the information provided by the ICICI Direct.Com. So, we can say

that these systems should be changed or modified by the ICICI Direct.com.

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Table No. 5.19 Customers’ rating of the services of ICICI Direct.Com

0 0 18 28 4 0

0% 20% 40% 60% 80% 100%

0 0 36% 56% 8% 0

Chart No. 5.18 Percentage of customers’ rating of the services of ICICI Direct.Com

According to the survey 56% of the customers said that ICICI Direct.Com services are

providing only 60% of its services to its customers. So we can say that ICICI Direct.Com

services should be increased to please its customers.

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0%0%

36%

56%

8% 0%

1 2 3 4 5 6

Table No. 5.20 Customers’ preference for ICICI Direct.Com over its competitors

Quality Service

Rates chargedNothing in Particular

Safety Reach

52 10 24 8 6

52% 10% 24% 8% 6%

Chart No. 5.19 Percentage of customers’ preference for ICICI Direct.Com over its competitors

According to the survey 52% of customers justify their preferences for ICICI Direct.com

for quality services, 10% for rates charged and 8% for safety. So, we can say that ICICI

Direct.Com provides quality services than its competitors. But in case of rate charges and

safety ICICI Direct.Com is behind its competitors.

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52%

10%

24%

8% 6%

Quality Service Rates charged Nothing in Particular Safety Reach

Table no. 5.20 Customers’ awareness of the products of ICICI Capital Ltd.

Products Tick %

ICICI Bonds 100 100

ICICIDirect.com 90 90

Mutual Fund 78 78

Equity IPO 74 74

Fixed Deposit 88 88

RBI Bonds 82 82

Chart No. 5.21 Percentage of Customers’ awareness of the products of ICICI Capital Ltd.

50

4539

37

44 41

ICICI Bonds ICICIDirect.com Mutual Fund

Equity IPO Fixed Deposit RBI Bonds

According to the survey most of the people know all the products of ICICI Capital

Services Ltd. Only the customers do not know few products. 100% awareness is feasible

in case of ICICI Bonds and 90% in case of ICICI Direct.com.

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FINDINGS & CONCLUSION

6.1 FINDINGS

ICICIdirect.com customers are more satisfied with the quality services. Holding securities in electronic form gives some far-reaching advantages to the investors.

ICICIdirect.com offers a wide choice of products for investing in the stock market. It allows to invest in shares, mutual funds and other financial products. With ICICIdirect.com one can manage own de-mat and bank accounts directly and independently.

The depository participant will allow an investor to trade through any broker of his choice registered with the stock exchanges connected with National Securities Depository Ltd, what will have to provide the details of investor’s account with Depository Participant.

Investor can click to get online information on their open orders and traders i.e. orders that are routed to exchange are waiting in the queue to be executed can be viewed for their status.

Transaction details for the traders done in the last month are available online.

Printed account statements too are available for earlier.

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6.2 SUGGESTIONS

Some customers feel that they are trained for ICICI Direct.Com demo. Many customers feel that batch of 15 are good for ICICI Direct.Com training.

Survey reveals that most of the customers are not aware of the service of the Mutual Fund. ICICI Capital Services Ltd. and the normal tendency of the customer are both investing in shares and in Mutual Funds are one and the same. So for this ICICI Capital Services Ltd., should create an awareness of what exactly mean by Mutual Funds and all other services of ICICI Capital Services Ltd.

After getting the printouts of the holding statement, dispatch of the same should be taken place with no delay and this can be cross verified with the sender (dispatch section).

Customers are facing over crowding, non-availability of telephone lines, so proper measures should be taken to overcome these problems.

The ICICI official should conduct regular training demo classes for the new account holders.

6.3 CONCLUSION

Icici direct.com is performing very well in the field of online share trading

business and having very good administration also.

Each departments doing their job very well comparing to the standard

performance fixed by the management and it leads to overall good performance of

the company.

There existing a good relationship between employees and management

The management taking keen interest for finding their weakness and try their

level best to overcome this weakness

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BIBLIOGRAPHY

Books and journals:-

ICICIdirect.com broachers and leaflets

Periodical published by ICICI Capital Ltd.

Journals published by ICICI Capital Ltd.

Websites:-

www.hinduonnet.com/businessline/iw/2001/05/27/stories/07276053.htm

www.cdslindia.com/FAQ/demat.htm

www.nsdl.co.in/services/demat.php

www.sebi.gov.in/faq/faqdemat.html

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QUESTIONNAIRE

Name:-……………………………………………E mail:………………………………………….

1) How do you justify your preference for ICICI Capital Ltd. over other Depository Services?

o Quality Serviceo Safety

o Reacho Vast variety of Service

o Nothing in Particular

2) What are the different types of investors having. ICICI Direct.com?

o Small Investorso Long term investors

o Traders

3) In which scheme are you holding your shares in ICICI Direct.com.?

o ICICIDirect.como Settlement

o Transmission of Securitieso Sell 'N' Cash

o Mutual funds

4) Do you aware the services offered by. ICICI Direct.com?

o ICICIDirect.como Settlement

o Transmission of Securitieso Sell 'N' Cash

o Mutual Fund o Loans Against de-mat shares

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5) If you are aware of the new services offered by ICICI Direct.Com then how did they come to know about it?

o Through ICICI Direct.Com o News Paper/ Magazines

o Broker o Agents

o Others

6) If you are not aware of the new services then who / what do you think should be the first source of information?

o Through ICICI Direct.Com o News Paper/ Magazines

o Broker o Agents

o Others

7) Are you satisfied with the services of ICICI Direct.Com?

o Satisfied o Mostly Satisfied

o Neither Satisfied / Unsatisfied o Mostly Unsatisfied

o Unsatisfied

8) Are you satisfied with the Demat services of ICICI Direct.Com?

o Satisfied o Mostly Satisfied

o Neither Satisfied / Unsatisfied o Mostly Unsatisfied

o Unsatisfied

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

o Satisfied o Mostly Satisfied

o Neither Satisfied / Unsatisfied o Mostly Unsatisfied

o Unsatisfied

10) Are you satisfied with the transmission of securities of ICICI Direct.Com?

o Satisfied o Mostly Satisfied

o Neither Satisfied / Unsatisfied o Mostly Unsatisfied

o Unsatisfied

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

o Satisfied o Mostly Satisfied

o Neither Satisfied / Unsatisfied o Mostly Unsatisfied

o Unsatisfied

12) Are the customers satisfied with the Mutual Fund service of. ICICI Direct.com?

o Satisfied o Mostly Satisfied

o Neither Satisfied / Unsatisfied o Mostly Unsatisfied

o Unsatisfied

13) Are you satisfied with the trading demos provided by ICICI Direct.com.?

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o Satisfied o Mostly Satisfied

o Neither Satisfied / Unsatisfied o Mostly Unsatisfied

o Unsatisfied

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

o Satisfied o Mostly Satisfied

o Neither Satisfied / Unsatisfied o Mostly Unsatisfied

o Unsatisfied

15) Are the customers satisfied with the telephonic enquiries of ICICI

Direct.com?

o Satisfied o Mostly Satisfied

o Neither Satisfied / Unsatisfied o Mostly Unsatisfied

o Unsatisfied

16) Are the customers satisfied with the co-operation by the staff of ICICI Direct.com.?

o Satisfied o Mostly Satisfied

o Neither Satisfied / Unsatisfied o Mostly Unsatisfied

o Unsatisfied

17) Are the customers are satisfied with the tariff structure of ICICI Direct.Com?

o Very High o High

o Reasonable o Low

o Very Low

18) Overall how the customers rate the services of ICICI Direct.Com?

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o 0 % o 20 %

o 40 % o 60 %

o 80 % o 100 %

19) How do the customers justify their preference for ICICIDirect.com over its competitors?

o Quality Service o Rates charged

o Nothing in Particular o Safety

o Safety

20) Are the customers aware of the following products of ICICI Direct.com.?

o ICICI Bonds o ICICIDirect.com

o Mutual Fund o Equity IPO

o Fixed Deposit o RBI Bonds

21) Have the customers faced any problem while dealing through ICICI Direct.Com or customers are unsatisfied with the below mentioned schemes / services?

o Frequent reminders are given to ICICI Direct.com for update the information

o Irregular receipt of Holding / Transaction statements

o Improper format of Holding / Transaction statements

o Improper attention given to the enquiries

o Billing problem

o Inadequate information

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