1. SUMMER TRAINING PROJECT REPORT
ON
“COMPARATIVE ANALYSIS BETWEEN ICICI SECURITIES LTD AND MAJOR
PLAYERS IN SECURITIES MARKET”
Submitted To
Kumaun University, Nainital
FOR PARTIAL FULLFILMENT OF THE DEGREE
OF
MASTER OF BUSINESS ADMINISTRATION
(MBA)
DEPARTMENT OF MANAGEMENT STUDIES,
Kumaun University, Nainital Uttarakhand
Submitted by:
PAWAN PUNETHA
2013
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2. STUDENT DECLARATION
I am student of MBA 3rd semester of Department of Management Studies; Bhimtal has
undergone a research project on “COMPARATIVE ANALYSIS BETWEEN
ICICI SECURITIES LTD AND MAJOR PLAYERS IN SECURITIES
MARKET " at DEHRADUN This Project has been undertaken as a partial fulfillment
of the requirement for the award of degree of MBA, Kumaun University, Nainital. This
project was executed during the summer break after the second semester under the
guidance of DR AMIT JOSHI (Faculty of Department) at DMS, Bhimtal. Further I
declared that this project is my original work and the analysis and the findings are for
academic purpose only. This project has not been presented in any seminar or
submitted elsewhere for the award of any degree or diploma.
Counter signed by :-
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(Student signature)

3. ACKNOWLEDGEMENT
This project aims at understanding the workings of an organization, its external and
internal processes, and the product and services it offers to its customers. ICICI
Securities Limited has provided an in depth knowledge about how an organization
functions, the challenges it faces and its earnest endeavor to overcome them in its
objective of becoming the no.1 service provider in its product line.
I thank Mr. MAX MENENGER (Country head) for selecting me as a management
trainee in his organization. I would especially like to thank Mr. SATISH JOSHI
(REGIONAL MANAGER) for his guidance and motivation in helping me to
understand the working of the organization and the challenges ahead in the
organization and the corporate world as a whole. My regards also extends to Mr.
ARVIND GUPTA (TEAM LEADER) for providing an insight in the organization and
their help and support and clearing my doubts and problems.
PAWAN PUNETHA
MBA III SEM
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4. 4|Page

5. TABLE OF CONTENT
CHAPTER-I
EXECUTIVE SUMMARY
8
CHAPTER-II
2.1
INTRODUCTION
10
2.2 REVIEW OF LITERATURE
11
2.3 STATEMENT OF PROBLEM
12
2.4 OBJECTIVES
12
2.5 PROBLEM DEFINETION
13
2.6 WHY INVESTOR CHOOSE ICICI SEC LTD
13
2.7 INVESTOR EXPECTATAIONS
15
2.9 INDIAN FINANCIAL SECTOR
17
3.0 ICICI SECUR: THE COMPANY
20
3.1 COMPANY STRUCTURE
26
3.2 COMPETITORS OF ICICI
27
3.3COMPETITIVE ADVANTAGE
28
CHAPTER-III
RESEARCH DESIGN AND METHODOLOG
3.4 RESEARCH DESIGN
32
3.5 SOURCES OF DATA COLLECTION
33
3.6 LIMITATIONS OF STUDY
34
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6. CHAPTER-IV
DATA REPRESENTATION, ANALYSIS & INTERPRETATION
3.7 DEMATERIALISATION
37
3.8 COMPARISON TABLE OF BROKERAGE CHARGES IN INDIA
42
3.9 SWOT ANALYSIS
49
CHAPTER-V
CONCLUSION AND RECOMMENDATION
52
CHAPTER-VI
BIBLIOGRAPHY
CHAPTER-VII
ANNEXTURE
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55

7. CHAPTER - I
EXECUTIVE SUMMARY
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8. 8|Page

9. EXECUTIVE SUMMARY
The project focuses on the dematerialization and stock trading services provided by ICICI
SECURITIES and its features which gives ICICI Securities no 1 position in financial market.
The project also includes the services industry in which ICICI Securities LTD plays an
important role. The organization structure, history of the company, ownership patterns,
divisions and different departments in the organization are also mentioned. The primary
objective of study is to understand the customer needs and their expectations from the
ICICI securities and their products.
The project provides an overall view on the financial standing of the company, products
offered and services provided the competitors in the industry and the competitive edge of
ICICI Securities LTD over others to have a distinctive position in the industry.
Lastly the project involves an analysis and comparative study of the product of ICICI
Securities LTD with other major players in securities market and Conclusion and
Recommendations to provide a horizon of improvement and growth.
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10. CHAPTER – II
INTRODUCTION
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11. INTRODUCTION
The stock broking industry is a service-oriented industry where brokers act as
agents for investors when a security is bought or sold and are compensated with a
commission. Investors would not hesitate to switch to alternative brokerage
houses if they do not obtain satisfaction. Providing quality service and hence
customer satisfaction should thus be recognized as a key strategy and a crucial
element of long-run success and profitability for stock broking businesses.
Little has been done towards understanding the expectations investors hold from
their stockbrokers. Since expectations serve as benchmark to gauge the service
level of brokers, the delivery of services that exceed customer expectations is one
strategy that can give firms a competitive advantage. Therefore, it would seem
beneficial for stockbrokerage firms, in a dynamic economic environment like
India, to provide service at a good scale of quality. In addition, stockbrokers have
much to gain in understanding investors’ expectations of them, as this would help
the stockbrokers to serve their customers better and foster long-lasting
relationship with their customers. This study therefore aims to provide a
platform for understanding what the customer needs and what is being provided
to bridge the gap between customer expectation and the actual service rendered.
This information would be useful for those who would like to control and improve
the performance of their service. The project would focus mainly on ICICI SEC
LTD. understanding of the requirements of the customer and its endeavor to
provide what the customer expects and hence showing that it is the market leader
in the stock broking industry.
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12. BACKGROUND AND LITERATURE REVIEW
The Securities Brokerage Industry is cyclical and comprised of two distinct types of
businesses. Brokerages, also known as financial services companies, strive to meet the
investing needs of their clients, and exchanges facilitate securities trading. Net profits
correlate to the performance of the broader equity market.
In this market with less differentiated products and many players, there exists an
oligopoly (saying in book terms), characterized by tough competition, entry and exit
barriers and many more.
1. Al Ries and Jack Trout, in his work said “differentiate or die”, too many less
differentiated products creates a kind of information overload, and in this clutter
of too much information, products which are not properly differentiated or
advertised just end up becoming a me too product. To avoid it every marketer
needs to position his/ her products in a way that makes a specific image in the
minds of consumers.
2. Jack Miller, in his work published on June 03, 2010, talked about how investors
make investment decisions. He broke the process of decision making in pulling
the buy or sell trigger. According to him investors made the investment decisions
in the ways like simple screening, then lateral recommendation, followed by
piggy bank investing.
3. According to U.S. Securities and Exchange Commissions‟, one of the articles:
investors first evaluate their current financial roadmap, and then they evaluate
their comfort zone in taking on risk. Consider an appropriate mix of
investments, create and maintain an emergency fund, consider dollar averaging,
consider rebalancing portfolio occasionally, and in the process also try to avoid
the circumstances that can lead to fraud.
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13. STATEMENT OF PROBLEM
To provide ICICI SEC LTD. with meaningful recommendation (if any) to initiate a
change in their products (Demat and trading etc.) after questioning prospective
investors regarding the fulfillment of their expectation.
OBJECTIVES OF RESEARCH:
To understand and analyze the expectations of customers of ICIC SECLTD In today‟s
market scenario and compare the services of ICICI SEC with Other major players in
securities market. Like Hdfc sec, Motilal Oswal, angel broking, share khan, India bulls,
Kotak securities.
Identifying problems being faced by customers
Analyzing ICICI sec‟s product in meeting these expectations.
Finding deviations if any.
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14. PROBLEM DEFINITION
Understanding expectation of investors.
Analyzing the problems being faced by investors.
Understanding ICICI DIRECT products to meet these problems.
Mapping a questionnaire to analyze investors’ satisfaction of ICICI DIRECT
product.
Contemplating the information.
Providing meaningful analysis of the problem.
Why investors choose ICICI SECURITIES??
It is an ICICI group company.
Diverse portfolio and a lot of products under one roof.
Has one of the best brokerage plans.
Attractive brand.
Relationship managers attached to customers.
Equity research team (one of the best in the market).
Controlled and low cost service structure.
Large volume processing structure.
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15. Expertise in coordinating multi-location responses.
Safety & security of funds & stocks.
Transparent dealings.
Hassle-free settlements.
Timely pay-in & pay-out, no follow ups.
Direct deal with members (no intermediaries).
Localised & personalised service.
Complete suite of products - One stop financial shop for Equity, Derivative, MF,
and IPO.
No hidden costs/charges.
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16. INVESTORS EXPECTATIONS
Providing basic knowledge to investors so as to help them in understanding the
stock market and making proper decisions in stocks
Providing an averagely priced product so as to appeal to the investors and have a
penetration effect in the market.
Timely input (tips, entry and exist) to be provided to prospective clients so that
they can maximize their wealth by making smart decisions.
Updated info about client accounts on amounts outstanding, payment,
withdrawals, shortages etc. if any.
Ancillary services like providing payout facilities, direct transfers, timely
payments and receipts, confirmations about order receiptance and delivery of
stocks, cheques, dematerialized shares etc.
Cordial relation with clients should be maintained so as to promote goodwill and
business of the broker.
Proper availability of RM’s to attend to clients requests so as to minimize delays
in order reacceptance and minimizing customer dissatisfaction.
Attractive brokerage charges (with respect to the customer needs).
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17. THE INDIAN FINANCIAL SECTOR
The Indian financial services industry has experienced significant growth in the
last few years. There has been a considerable broadening and deepening of the
Indian financial markets due to various financial market reforms undertaken by
the Indian regulators, the introduction of innovative financial instruments in the
recent years and the management and brokerage have been liberalized to allow
private sector involvement, which has contributed to the development and
modernization of the financial services sector.
CAPITAL MARKET:
The capital market is divided into two segments viz:
a) Primary Market
b) Secondary Market
a) PRIMARY MARKET:
Most companies are usually started privately by their promoters.
However the promoters ‘capital and the borrowed capital from banks or financial
institutions might not be sufficient for running the business over the long term. That is
when corporate and the government looks at the primary market to raise long term funds
by issuing securities such as debt or equity. These securities may be issued at face value,
at premium or at discount. Let us understand the meaning of these terms:
 Face Value: Face val is the original cost of the security as shown in the
ue
certificate/instrument. Most equity shares have a face value of Rs. 1, Rs. 5, Rs. 10 or Rs.
100 and do not have much bearing on the actual market price of the stock. When issuing
securities, they may be offered at a discount or at a premium.
 Premium: When the security is offered at a price higher than the face value it is called a
premium
 Discount: When the security is offered at a price lower than the face value it is called a
discount.
16
b) SECONDARY MARKET:
The secondary market provides liquidity to the investors in the primary market. Today we
would not invest in any instrument if there was no medium to liquidate our position. The
secondary markets provide an efficient platform for trading of those securities initially
offered in the primary market. Also those investors who have applied for shares in an IPO
may or may not get allotment. If they don‘t then they can always buy the shares
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18. (sometimes at a discount or at a premium) in the secondary market. Trading in the
secondary market is done through stock exchange. The Stock exchange is a place where
the buyers and sellers meet to trade in shares in an organized manner. The stock exchange
performs the following functions:
 Provide trading platform to investors and provide liquidity
 Facilitate Listing of securities
 Registers members Stock Brokers, sub brokers
 Make and enforce bylaws
 Manage risk in securities transactions
 Provides Indices
There are two leading stock exchanges in India which help us trade are:
i. National Stock Exchange: National Stock Exchange incorporated in the year 1992
provides trading in the equity as well as debt market. Maximum volumes take place on
NSE and hence enjoy leadership position in the country today
ii. Bombay Stock Exchange: BSE on the other hand was set up in the year 1875 and is the
oldest stock exchange in Asia. It has evolved in to its present status as the premier stock
exchange.
RECENT ADVANCEMENTS IN THE INDUSTRY
With market sentiment turning positive due to the formation of a stable newly
elected government, the ripple effect is likely to felt across all the financial
services in India.
Financial services and real estate sector rose by 11.5 per cent in the first quarter
of 2011-12.
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19. Slashing interest rates, lowering factory levies and more than doubling the limit
on foreign investment in corporate bonds has led to rapid growth in the financial
sector.
2011-2013 saw increased inflow in to equity with investors steadily turning
positive on equity with net investment of mutual funds in debt almost getting
tripled.
India’s market capitalization (m-cap) has touched US$ 1.24 trillion making it the
largest among in the world.
The Indian stock market has currently responded to the optimism of reforms by
the new stable government and its continuity in policies.
Falling commodity price will ease input cost of the industries. Government
policies to boost the economy.
Inflation is at control 9- 10%. As interest rate in developed economy is record
low, India could attract investment.
Reducing interest rates provide fuel to the recession economy making the
financial system more secure.
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20. ICICI GROUP
ICICI SECURITIES LTD
ICICI Securities Ltd is an integrated securities firm offering a wide
Range of services including investment banking, institutional broking,
Retail broking, private wealth management, and financial
Product distribution.
ICICI Securities sees its role as 'Creating Informed Access to the
Wealth of the Nation' for its diversified set of client that include
Corporate, financial institutions, high net-worth individuals
And retail investors.
Headquartered in Mumbai, ICICI Securities operates out of 66
Cities and towns in India and global offices in Singapore and New
York.
ICICI Securities Inc., the step-down wholly owned US subsidiary
Of the company is a member of the Financial Industry Regulatory
Authority (FINRA) / Securities Investors Protection Corporation (SIPC)
. ICICI Securities Inc. activities include Dealing in Securities and
Corporate Advisory Services in the United States.
ICICI Securities Inc. is also registered with the Monetary Authority of
Singapore (MAS) and operates a branch office in Singapore.
THE SERVICES OFFERED BY ICICI SEC LTD ARE:
INVESTMENT PRODUCTS
BONDS
IPOs
MUTAL DUNDS
FD
NCD,s
FINANCIAL PLANNING
WEALTH PRODUCTS
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21. PMS
ASSERTS
HOME LOANS
LAP
LAS
REAL ESTATE
EQUITY
3-in-1A/C
PREPAID A/C
ATS
PAID EDUCATION
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23. ICICI GROUP: THE LEADING FINANCIAL INSTITUTION OF INDIA:
OVERVIEW
ICICI Group offers a wide range of banking products and financial services to corporate and
retail customers through a variety of delivery channels and through its specialized group
companies and subsidiaries in the areas of personal banking, investment banking, life and
general insurance, venture capital and asset management. With a strong customer focus,
the ICICI Group Companies have maintained and enhanced their leadership positions in
their respective sectors.
1. ICICI Bank is India's second-largest bank with total assets of Rs. 4,736.47 billion (US$ 93
billion) at March 31, 2012 and profit after tax Rs. 64.65 billion (US$ 1,271 million) for the
year ended March 31, 2012. The Bank has a network of 2,791 branches and 10,021 ATMs
in India, and has a presence in 19 countries, including India.
2. ICICI Prudential Life Insurance is a joint venture between ICICI Bank, a premier financial
powerhouse, and Prudentially, a leading international financial services group
headquartered in the United Kingdom. ICICI Prudential Life was amongst the first private
sector insurance companies to begin operations in December 2000 after receiving approval
from Insurance Regulatory Development Authority (IRDA). ICICI Prudential Life's capital
stands at Rs. 47.91 billion (as of March 31, 2012) with ICICI Bank and Prudential plc holding
74% and 26% stake respectively. For FY 2012, the company garnered Rs.140.22 billion of
total premiums and has underwritten over 13 million policies since inception. The company
has assets held over Rs. 707.71 billion as on March 31, 2012.
3.ICICI Lombard General Insurance Company, is a joint venture between ICICI Bank
Limited, India's second largest bank with consolidated total assets of over USD 91 billion at
March 31, 2012 and Fairfax Financial Holdings Limited, a Canada based USD 30 billion
diversified financial services company engaged in general insurance, reinsurance, insurance
claims management and investment management. ICICI Lombard GIC Ltd. is the largest
private sector general insurance company in India with a Gross Written Premium (GWP) of
Rs. 5,358 crore for the year ended March 31, 2012. The company issued over 76 lakh
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24. policies and settled over 44 lakh claims and has a claim disposal ratio of 99% (percentage of
claims settled against claims reported) as on March 31, 2012.
4. ICICI Securities Ltd is the largest integrated securities firm covering the needs of
corporate and retail customers through investment banking, institutional broking, retail
broking and financial product distribution businesses. Among the many awards that ICICI
Securities has won, the noteworthy awards for 2012 were: Asia money `Best Domestic
Equity House for 2012; 'BSE IPF D&B Equity Broking Awards 2012' under two categories:Best Equity Broking House - Cash Segment and Largest E-Broking House; the Chief
Learning Officer Award from World HRD Congress for Innovation in Learning category. IDG
India's CIO magazine has recognized ICICI Securities as a recipient of CIO 100 award in
2009, 2010, 2011 and 2012. I-Sec won this awards 4 times in a row for which the CIO Hall of
Fame award was additionally conferred in 2012.
5. ICICI Securities Primary Dealership Limited (‘I-Sec PD’) is the largest primary dealer in
Government Securities. It is an acknowledged leader in the Indian fixed income and money
markets, with a strong franchise across the spectrum of interest rate products and services institutional sales and trading, resource mobilization, portfolio management services and
research. One of the first entities to be granted primary dealership license by RBI, I-Sec PD
has made pioneering contributions since inception to debt market development in India. ISec PD is also credited with pioneering debt market research in India. It is one of the largest
portfolio managers in the country and amongst PDs, managing the largest AUM under
discretionary portfolio management.
I-Sec PD’s leadership position and research expertise have been consistently recognized by
domestic and international agencies. In recognition of our performance in the Fixed Income
market, we have received the following awards:
“Best Domestic Bond House” in India - 2007, 2005, 2004, 2002 by Asia Money
“Best Bond House” - 2009, 2007, 2006, 2005, 2004, 2001 by Finance Asia
“Best Domestic Bond House” – 2009 by The Asset Magazine’s annual Triple A
Country Awards
Ranked volume leader - by Greenwich Associates in 2010 Asian Fixed-Income
Investors Study. Ranked 5th in ‘Domestic Currency Asian Credit’ with market share
of 4.5%, Only Domestic entity to be ranked.
“Best Debt House in India” – 2012 by EUROMONEY
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25. 6. ICICI Prudential Asset Management is the third largest mutual fund with average asset
under management of Rs. 688.16 billion and a market share (mutual fund) of 10.34% as on
March 31, 2012. The Company manages a comprehensive range of mutual fund schemes
and portfolio management services to meet the varying investment needs of its investor’s
through117 branches and 196 CAMS official point of transaction acceptance spread across
the
country.
7. ICICI Venture is one of the largest and most successful alternative asset managers in
India with funds under management of over US$ 2 billion. It has been a pioneer in the Indian
alternative asset industry since its establishment in 1988, having managed several funds
across various asset classes over multiple economic cycles. ICICI Venture is a wholly
owned subsidiary of ICICI BANK.
COMPANY STRUCTURE:
Our organization is led by individual who are professional and leaders in every
sense of the world. Experts in their respective domain, esteem members of its
Board of Directors are:
ICICI Securities Limited.
Ms. Chanda D. Kochhar,Chairperson
Mr. Uday Chitale
Mr. Narendra Murkumbi
Ms. Zarin Daruwala
Mr. Anup Bagchi, Managing Director & CEO
Mr. Ajay Saraf, Executive Director
Mr. Ketan Patel
ICICI Securities Holding Inc.
Mr. Sandeep Batra, Director
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26. Mr. Sriram Iyer, Director
Mr. Warren Law
ICICI Securities, Inc.
Mr. Anup Bagchi, Chairman
Mr. Ajay Saraf
Mr. Jaideep Goswami
Mr. Subir Saha
Mr. Robert Ng
Mr. MAX MENENGER (SUB broker channel)
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27. COMPETITORS OF ICICI SECURITIED LTD ARE:
HDFC SECURITIES
INDIA BULLS
KOTAK SECURITIES
SHARE KHAN SECURITIES
MOTILAL OSWAL
ANGEL BROKING
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28. The ICICI SEC LTD Edge:
Position is not squared off without margin calls.
Cash transfer facility against sale & purchase of shares.
Judgmental call tips given even in the processing time.
Facility to place after market orders.
Efficient and prompt customer service.
Efficient research and analytical team.
SMS alert and email notification.
Short margin calls in the morning.
Transfer funds with most banks.
We offer discount on brokerage.
Attractive margin funding facility.
Flat prescribed NSDL charges.
ECS of dividend in margin.
Excellent market tips.
No inactivity fee.
IPO investments.
4 times exposure on delivery and intraday.
We offer mapping with other demat absolutely free of cost.
No minimum balance maintenance on R-ally.
Brokerage is negotiable.
Company offers demat 3 in 1 online banking A/C
EASE, TRANSPARENCY, SPEED
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29. 3-in-1 account is a unique Platform: Providing Demat,
Trading and Savings account
Transparency: Direct dealing with ICICI securities,
Weekly contract Notes sent to customers
Security: As per client request, orders are placed by SB
Trust: No hidden charges for your customers
Flexibly & Competitively priced for the end
Our power packed trading terminal
Advanced software‟s for trading.
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31. CHAPTER-III
RESEARCH DESIGN AND
METHODOLOGY
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32. Research Methodology comprises defining and redefining the problem, formulating
hypothesis or suggesting solution, collecting, organizing and evaluating the data,
making deduction and reaching to conclusions. Research Methodology is a way to solve
research in study and solving research problems along with logic behind them. Thus
while talking about research methodologies we are not only talking of research methods
but also consider the logic behind the methods.
During my project, I collected data through various sources of primary & secondary
data.
RESEARCH DESIGN:
A research design is the master plan or model for the conduct of formal investigation
and survey.
It is a specification of methods and procedures for acquiring the
information needs for solving the problem. It decides the source of information and
methods for gathering the data. A questionnaire and other forms are tested to use the
collection of data. A sampling design is to be selected.
Good research design ensures that the information obtained is relevant to the research
question and that it was collected by objectives. Since research design is simply the
framework of plan for a study, it is used as a guide in collecting and analyzing the
data. It is a blueprint that is followed in completing the research study. My approach
to research is descriptive as well as Explorative. The major objective of the descriptive
research is to describe something – usually market features or functions. Exploratory
research is concerned with the identifying the new insights of investment psychology.
Why investor don‟t want to invest in share market.
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33. SOURCES OF DATA COLLECTION:
In this research, I have used two types of data.
Primary Data.
Secondary Data.
Sources of Primary Data includes:Telephonic Interview
Personal Interview during cold calling
Company prospectus & literature
Questionnaire
Sources of Secondary Data includes:Books related to Financial Management
Internet
Newspaper
Company Database
References given by Relationship Manager
SAMPLINGDESIGN
PROBABILITY/
PROBABILITY
NON
PROBABILITY
Sampling Unit
Online trading companies
Sample Size
6 Online trading companies
Sampling Procedure
Simple Stratified Sampling
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34. Otheron-linesharetradingco‟sare
ICICIDIRECT.COM
www.icicidirect.com
Share khan
www.sharekhan.com
MOTILAL Oswal
www.motilaloswal.com
India bulls securities ltd.
www.indiabulls.com
HDFC Securities
www.hdfcsec.com
Kodak Securities
www.kotaksecurities.com
ANGEL BROKING
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www. angelbroking.com

35. Limitation of the study
The information given by the person of company may not be
completely correct. Some information may be given wrongly
which may not be factual.
The complete parameters to compare the online product are not included.
Visual look of the Software and different facilities of software are not
included.
Only13person of company is interviewed. All the parameters may not be
Relevant for all the companies.
Due to limitation of time and cost constraints a sample
size of only 6 Companies of online trading are chosen. This
exploratory research is done focusing on the Comparative
analysis scenario ofdehradun region only therefore
findings and suggestions given on the basis of this
research and
Cannot be considered for the entire stock market Industry.
As we all know, security market is highly volatile.Wemay
predicts about it more accurate but due to uncertain driving
forces the predictions may not work.
The market risks and uncertainties are always there.
The data provided by the investor and the agents can’t be assumed as
100% correct.
Sampling was judgment based & simple random so chance of occurrence
of error is more.
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36. CHAPTER - V
DATA REPRESENTATION,
ANALYSIS
&
INTERPRETATION
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37. DEMATERIALISATION
In order to mitigate the risks associated with share trading in paper
format, dematerialisation concept was introduced in Indian Financial
Market. Dematerialisation or Demat in short is the process through which
an investor’s physical share certificate gets converted to electronic format
which is maintained in an account with the Depository.
India adopted the Demat System successfully and there are plans to
facilitate trading of almost all financial assets in Demat format in future.
Through this article, we will try to understand the Demat process and its
benefits from common investor’s perspective.
What is it?
Dematerialisation is the process of converting physical shares into
electronic format. An investor who wants to dematerialise his shares
needs to open a Demat account with Depository Participant. Investor
surrenders his physical shares and in turn gets electronic shares in his
Demat account.
Storage of Dematerialised Shares - Depository
Depository is the body which is responsible for storing and maintaining
investor's securities in Demat or electronic format. In India there are two
depositories i.e. NSDL and CDSL.
Who is a Depository Participant?
Depository Participant (DP) is the market intermediary through which
investors can avail the depository services. Depository Participant
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38. provides financial services and includes organizations like banks, brokers,
custodians and financial institutions.
Advantages of Demat
Dealing in Demat format is beneficial for investors, brokers and companies
alike. It reduces the risk of holding shares in physical format from
investor’s perspective. It’s beneficial for brokers as it reduces the risk of
delayed settlement and enhances profit because of increased
participation.
From share issuing company’s perspective, issuance in Demat format
reduces the cost of new issue as papers are not involved. Efficiency and
timeliness of the issue is also maintained while companies deal in Demat
format.
There are a lot of other benefits, but let’s focus on benefits with respect to
common investor and the same are listed below.
• Demat format reduces the risk of bad deliveries
• Time and money is saved as you are not dealing in paper now. You
need not go to the notary, broker for taking delivery or submitting the
share certificate
• Liquidity is very high in case of Demat format as whole process in
automated.
• All the benefits of corporate action like bonus, stock split, rights etc.
are managed through the depository leading to elimination of transit
losses
• Interest on loan against Demat shares are less as compared to
physical shares
• Investors save stamp duty while transferring shares in Demat format.
• One needs to pay less brokerage in case of Demat shares.
Demat Conversion
Most of the trading in shares are done in Demat format now a day, but
there are few investors who still hold shares in paper format. You cannot
deal in paper shares now, so you need to dematerialise them first. In order
to dematerialise physical/paper shares, investors need to fill Demat
Request Form (DRF), and submit the same along with physical shares.
DRF is available with the DP and you simply need to raise a request for
Demat conversion with the DP.
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39. Their representative will come and get the DRF form signed. So the
complete process of dematerialisation involves:
1. Investor surrenders the physical certificates for dematerialisation to
the DP along with DRF.
2. DP updates the account of the investor and shares are allocated in
investor demat holding.
BENEFITS OF DEMAT ACCOUNT
Safe and convenient way of holding securities (equity and debt instruments both).
Transactions involving physical securities are costlier than those involving
dematerialised securities (just like the transactions through a bank teller are costlier
than ATM transactions). Therefore, charges applicable to an investor are lesser for
each transaction.
Securities can be transferred at an instruction immediately.
Increased liquidity, as securities can be sold at any time during the trading hours
(between 9:15 AM to 3:30 PM on all working days), and payment can be received in
a very short period of time.
No stamp duty charges.
Risks like forgery, thefts, bad delivery, delays in transfer etc, associated with
physical certificates, are eliminated.
Pledging of securities in a short period of time.
Reduced paper work and transaction cost.
Odd-lot shares can also be traded (can be even 1 share).
Nomination facility available.
39 | P a g e

40. Any change in address or bank account details can be electronically intimated to all
companies in which investor holds any securities, without having to inform each of
them separately.
Securities are transferred by the DP itself, so no need to correspond with the
companies.
Shares arising out of bonus, split, consolidation, merger etc. are automatically
credited into the Demat account of the investor.
Shares allotted in public issues are directly credited into Demat account of the
applicants in quick time.
BANK ACCOUNT VS DEMAT ACCOUNT
S.
Basis Of
No.
Differentiation
1.
Form of
Bank Account
Demat Account
Funds
Securities
Holdings/Depo
sits
2.
Used for
Safekeeping of money
Safekeeping of shares
3.
Facilitates
Transfer of money
Transfer of shares (without actually
(without actually
handling shares)
handling money)
4.
Where to open
A bank of choice
A DP of choice (can be a bank)
5.
Requirement
Not Mandatory
Mandatory (effective from April 01,
40 | P a g e

41. 2006)
of PAN
Number
Interest
Interest income is
No interest accruals on securities
accrual on
subject to the
held in Demat account
holdings
6.
applicable rate of
interest
AQB* maintenance is
specified for certain
requirement
8.
Minimum
balance
7.
bank accounts
Either or
No such requirement
Available
Not available
Survivor
facility
*AQB - Average Quarterly Balance
SIMILARITES BETWEEN BANK'S A/c AND DEMAT A/c
S. No.
BASIS OF
PARTICULARS
SIMILARITY
1.
Security and
Both are very safe and convenient means of holding
Convenience
deposits/securities
41 | P a g e

42. 2.
No legal barrier on the number of bank or Demat
Number of accounts
accounts that can be opened
5.
Funds/securities
instruction of the account holder
Physical transfer of
Physical transfer of money/securities is not
money/securities
4.
Transfer of deposits
(funds or securities)
3.
are
transferred
only
at
involved
Nomination Facility
Available
COMPARATIVE ANALYSIS
1. ICICI VS HDFC SEC
ICICIDIRECT
HDFC SECURITIES
Trading Account Opening
Fees
975 Rs
799 Rs
Trading Account AMC
Nil
Demat Account Opening
Fees
Nil
Demat Account AMC
Rs 450
ICICI DIRECT
CM Segment - Cash
Delivery
CM Segment - Cash
Intraday
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HDFC SECURITIES
0.55%
0.50%
0.275%
0.10%
the

43. Margin Trading
0.05- 0.03%
0.05%
F&O Segment – Futures
0.05- 0.03%
0.05%
F&O Segment – Options
Rs 95- 65 per lot
Rs 100
Minimum Brokerage
Charges
Rs 25
Rs 25
PROS- ICICI DIRECT
Offers 3-in-1 account which makes stock market investment very easy for
casual investors.
Wide range of investment options available under one portal.
Provides a low bandwidth website which works well where internet
connection is slow.
GTC (good till cancellation) and off-market hours order placement facility is
very useful.
Pros – Hdfc sec
The 3-in-1 account, which includes HDFC Bank Account, HDFC Securities
Trading Account and HDFC Securities Demat Account, is the best offering for
retail investors in India as it provides easiest way to invest in stock market and
other financial instruments.
Concs: Icici direct:
ICICI Security charges high brokerage in comparison to most of the
brokers.
Poor performance of website is reported in peak hours of trading.
Concs: Hdfc securities:
In addition to opening a trading account with HDFC Securities Ltd, you will
also be required to open a savings bank account (quarterly minimum balance
of Rs. 5000) and a DP (depository participant) account with HDFC Bank.
2. ICICI DIRECT VS INDIA BULLS
ICICIDIRECT
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INDIABULLS SECURITIES

44. Trading Account Opening
Fees
975 Rs
950 Rs
Trading Account AMC
Nil
Nil
Demat Account Opening
Fees
Nil
Nil
Demat Account AMC
Rs 450
Rs 450
ICICI DIRECT
INDIABULLS SECURITIES
CM Segment - Cash
Delivery
CM Segment - Cash
Intraday
Margin Trading
0.55%
0.40%
0.275%
0.04%
F&O Segment – Futures
0.05- 0.03%
0.04%
F&O Segment – Options
Rs 95- 65 per lot
Minimum Brokerage
Charges
Rs 25
2.5%orRs 100 per lot
whichever is high
4 paisa per share
0.05- 0.03%
PROS OF INDIA BULLS:
India bulls has good network of branches across India.
Brokerage is negotiable and can be reduced up to 50-60%.
10 times exposure for intraday trades.
India bulls provides trading platforms which are easy to use, rich in
features and to suite different customer needs. Power India bulls
Trading Terminal, Online Trading Website and Mobile Power India bulls
trading platform are 3 platforms offered by them.
India bulls have branches and sub brokers in almost every city in India.
This helps customers who feel comfortable dealing with people.
India bulls offers 2-in-1 account which includes share trading and
demats account.
CONS: OF INDIA BULLS
Power India bulls Trading Terminal cost Rs 750 one time change.
44 | P a g e

45. There are no standard rates, fees or brokerage published on website.
You should be very careful with hidden changes.
No centralized support or sales team. Business is done through
branches and sub-brokers.
India bulls doesn't provide 3-in-1 account
3. ICICI DIRECT VS KOTAK SECURITIES
ICICIDIRECT
KOTAK SECURITIES
Trading Account Opening
Fees
975 Rs
Rs 750
Trading Account AMC
Nil
Demat Account Opening
Fees
Nil
Demat Account AMC
Rs 450
Rs 600
ICICI DIRECT
KOTAK SECURITIES
CM Segment - Cash
Delivery
CM Segment - Cash
Intraday
Margin Trading
0.55%
0.49%
0.275%
0.049
F&O Segment – Futures
0.05- 0.03%
0.049%
F&O Segment – Options
Rs 95- 65 per lot
Rs 100
Minimum Brokerage
Charges
Rs 25
4p for delivery,3p for
Intraday & Futures
0.05- 0.03%
Pros of Kotak securities:
Kotak Security is a full services broker offering wide range of
investment options and research reports.
Kotak Securities has extended network of 1400+ branches across India.
45 | P a g e

46. It offers 3-in-1 account, the combination of broker account, bank
account and a Demat account. All these accounts are linked together
and work seamlessly to make stock market investment very easy
especially for beginners in stock market.
Kotak offers 5 different trading platforms to fulfill almost all customer
requirements.
Cons:
The brokerage changed by them of higher than the discount brokers.
4. ICICI DIRECT VS SHARE KHAN
ICICIDIRECT
Share khan
Trading Account Opening
Fees
975 Rs
Rs 750
Trading Account AMC
Nil
Rs 400
Demat Account Opening
Fees
Nil
Demat Account AMC
Rs 450
Rs 400
ICICI DIRECT
Share khan
CM Segment - Cash
Delivery
CM Segment - Cash
Intraday
Margin Trading
0.55%
0.50%
0.275%
0.10%
F&O Segment – Futures
0.05- 0.03%
0.10%
F&O Segment – Options
Rs 95- 65 per lot
Rs 100
Minimum Brokerage
Charges
Rs 25
Pros in share khan:
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0.05- 0.03%
10 paisa per
share

47. It has a strong network of over 1950 branches across India.
The fund transfer from and to the trading account is free.
The share transfer from and to the DP account is free when trading from
Share khan trading account.
The 'Trade Tiger' is the most popular trading terminal in India.
Cons:
Share khan doesn’t offer 3-in-1 account as it doesn’t offer banking
services.
Share khan brokerage is high in comparison to the discount brokers.
Share khan charges Rs 400 as AMC for trading account in addition to Rs
400 for Demat account.
5. ICICI DIRECT VS MOTILAL OSWAL
ICICIDIRECT
MOTILAL OSWAL
Trading Account Opening
Fees
975 Rs
Nil
Trading Account AMC
Nil
Nil
Demat Account Opening
Fees
Nil
NIL
Demat Account AMC
Rs 450
Rs 441
ICICI DIRECT
MOTILAL OSWAL
CM Segment - Cash
Delivery
CM Segment - Cash
Intraday
Margin Trading
0.55%
0.50%
0.275%
0.10%
F&O Segment – Futures
0.05- 0.03%
47 | P a g e
0.05- 0.03%
0.10%

48. F&O Segment – Options
Rs 95- 65 per lot
Minimum Brokerage
Charges
Rs 25
Rs 100
CONS OF MOTILAL OSWAL:
Margin Deposit Rs 10,000+ is required
6. ICICI DIRECT VS ANGEL BROKING
ICICIDIRECT
ANGEL BROKING
Trading Account Opening
Fees
975 Rs
0
Trading Account AMC
Nil
Rs347
Demat Account Opening
Fees
Nil
Rs 0
Demat Account AMC
Rs 450
Rs 0
ICICI DIRECT
ANGEL BROKING
CM Segment - Cash
Delivery
CM Segment - Cash
Intraday
Margin Trading
0.55%
0.40 – 0.10%
0.275%
0.04- 0.01%
F&O Segment – Futures
0.05- 0.03%
0.04- 0.01%
F&O Segment – Options
Rs 95- 65 per lot
0.04- 0.01%
Minimum Brokerage
Charges
Rs 25
PROS: NOTHING
48 | P a g e
0.05- 0.03%

49. CONS: Useless Online Chat Support. They can't answer any of the questions
you ask. The standard answer is 'Sir as per our policy we cannot provide you
details on chat however can arrange call back for you'.
SWOT ANALYSIS
SWOT analysis is done by all the companies to be aware about the
competitor and new changes in the market. The SWOT analysis leads the
company to take strategic decisions. Company always highlight its
strength, try to hide own weakness and in the same way try to find out
strength and weakness of the competitors.
S
–
Streng
th
Strength of the ICICI Securities is the main feature of the service. As it
gives 3 in 1 account to the customer, the ease to trade at your convenient
time is the main strength
of the ICICI Direct. Following are some of the strong points of the
company.
Convenience of time to trade
Faster transaction
Paperless work
3 in 1 account facility so all work done at one place
The bank has strength of the latest technologies and the
most modern banking channels as net banking and the schemes
such as young saver accounts also.
The young and energetic staff of the bank is also one of the strengths.
W- Weaknesses
Weakness of company is fond out to remove it and then make the product
or service better than current status. Each and every product and service
49 | P a g e

50. has weakness. It is just
like two side of the coin, if you have strength then you have weakness.
The weakness of the ICICI Direct.com can be said its high charges
Compared to other companies.
O – Opportunity
Opportunity of the company is with the growth of volume of share
trading and if company decides to reduce the prices to some extent then a
new market segment will
come up as a customer of the service.
Dehradun, Haridwar being the big industrial city of
Uttarakhand region the Bank has enough of opportunities to
flourish its business here.
ICICI Bank can also grab the opportunity of establishing its
market in the nearby towns and villages by keeping their ATM
machines and also by sending their marketing executives to
these remote places on some specific
Days.
T – Threat
Threat for the company can be considered as following.
Growing competition
Change in government rules which is negative for stock market
Low prices of local brokers
Low awareness of computer in public
The other threat of the new entrants in the market will take
up the share from them.
Now a day‟s many of the financing companies are entering the
d e h r a d u n Market, which is one of the biggest threats for the Banks as they
provide the finance to the customers at very less rates and also at the quickest.
50 | P a g e

51. CHAPTER-VI
CONCLUSION
AND
RECOMMENDATIONS
51 | P a g e

52. CONCLUSION
Online Trading is successful in other parts of the world, especially in the
US. That„s because it has a strong culture of using credit cards (plastic
money) and a strong law and order system. If you look beyond the US,
even other leading markets like Hong Kong are still in a premature stage
for execution of internet trading. As for the future of internet broking in
India, It sounds exciting, but when we talk about the net penetration
level of telecommunication and computer usages, it is poor in India.
Since the concept is new to investors, it is very important that they follow
certain guidelines, which will ensure safe trading. Removing the mental
block from the minds of the investor with regard to online trading. The
Indian stock market faces the challenge of setting up this infrastructure.
Another important point is people of India specifically; investors are not too
much techno. This has been achieved through active use of cutting- edge
t e c h n o l o g y and b e i n g i mp roved
by h i g h l y m o t i v a t e d a n d
s k i l l e d employees.
The success of e-broking would depend on addressing each and
every issue faced by the investors in offline trading and delivering the service
in a seamless manner backed by world-class customer service.
Finally I n d i a needs a robust and world class IT and
telecom infrastructure coupled with explosion in Internet penetration. In
under served
Internet market of India, this is one definite case of ―build and they will
come.‖
RESEARCH FINDINGS
Limit Exposure in case of margin segment (same day) is higher than
all other companies.
Account opening charge is also higher than the other
52 | P a g e

53. companies.
Still quotes of BSE trading time are late by 1 to 5
minutes.
Some time we cannot execute trade on BSE market.
Still transaction speed is not high in compare to other
companies.
Brokerage charges are also higher than the other
companies.
Some customers demanding more limits in deliver trading which is
lower than other sites.
Some customers are interested in account opening but not
ready for maintaining minimum Rs. 5000 balance in saving account.
Annual Service charge is higher than the other companies.
RECOMMENDATIONS
For Brokers
Brokerage Firms need to ensure that their ability to provide
effective customer service keeps pace with their growth, if you
are marketing your firm to new customers, you better be able
to provide them service when they do business with you.
All firms, whether on-line, discount or full service, have an
obligation to ensure the best execution of their customers„
orders.
Network infrastructure will have to be stabilized. The
Internet an computers will have to penetrate further in dayto-day life of investors. When security and accessibility issues
are resolved and technology stabilizes successful investor
will find the actual time spent trading will be minimal. Nearly
all the effort involved will relate to monitoring the standards
that have been set. Not so hard, but not so easy
53 | P a g e

54. FOR COMPANY:
Company should decrease brokerage. Right now it is 0.75% on delivery
and
0.15% on margin trading.
Company should decrease the account opening charges so
that more & more customers can be attracted.
Annual charges should be decrease because the other
companies have very less annual charges.
Sometime problem arise on BSE market trading where we
cannot execute trade on it. So company should improve
infrastructure facility.
Awareness should create among the people about this new type of
technology
with the help of seminar and expert session.
The enterprise should try to bring in the notion of „customer orientation‟
i.e. give the customer what they require, only then can it grow and reach
the highest level of customer satisfaction.
An RM assessment is required after every month so as to assess their
performance and ask them about the steps they have taken to retain their
original customers and to induce the dormant customers to invest and also
to assess if the client is satisfied with the working of their respective RMs.
FOR CUSTOMER:
Customer should not worry about brokerage part because
services are far better and different types of products are
therein the company.
ICICIDirect.com is part of ICICI Group & this group is trusted by
millions of people.
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55. CHAPTER-VII
BIBLIOGRAPHY
55 | P a g e

56. BIBLIOGRAPHY
BOOKS & JOURNALS:
 RESEARCH METHODOLOGY METOHDS & TECHNIQUES
Author: - C.R.Kothari
 MARKETING RESEARCH
Author: - David. J. Luck
Ronald S. Rubin
WEBSITES:
 http://www.religaresecurities.com
 http://www.nseindia.com
 http://www.bseindia.com
 http://www.google.com
 http://www.finsights.com
 http://www.asklaila.com
 http://www.moneycontrol.com
 http://www.adityabirlamoney.com
 http://www.economictimes.com
56 | P a g e

57. CHAPTER – VIII
ANNEXURE
57 | P a g e

58. APPENDIX
QUESTIONNARE
1. Name:
2. Mob No:
email:
3. Company:
4. Income
A) Below 2 lakh
B) 2lakh to 5 lakh
C) 5lakh to 10 lakh
D) More than 10 lakh
5. Do you invest in share market?
A) Yes
B) No
[A] If “yes”
1. How much you invest?
2. Which is your broking firm?
3. In which market you invest more frequently?
A) Equity market
58 | P a g e
B) Commodity market

59. C) Mutual funds
D) Gold
E) Other: ........................
4. Are you satisfied with the service?
A) Yes
B) No
Comment:
[B] If “no”
1. Do you have “Demat Account”?
A) Yes
2. Any specific reason for not investing in stock market
Comment:3. Would you like to invest in share market?
1. Have you heard about “Icici securities ltd”?
59 | P a g e
B) No