ACKNOWLEDGEMENT

I am very thankful to Mr. Suresh Goel (Branch Manager) ICICI

direct.com for providing me the opportunity to undergo the practical
training in the ICICI direct.com branch in Hisar. He guided me from time
to time and gave me dynamic ideas and suggestions by which I am able to
complete my training successfully.

I am grateful to Mr. Harish Goel, Mr. Charan, Miss. Neelam, Miss..

Rajeshwari for enhancing my practical approach.

I also want to thank all the visible and non-visible hands, which helped me
to complete the practical training with great success.

Shilpi Singla
Master Of Finance& Control
(Kurukshetra University,Kurukshetra)

1
 CONTENTS

 PREFACE Page No. 3

 SELF EVALUATION Page No. 4

 INDUSTRY PROFILE Page No. 5-12

 COMPANY PROFILE Page No. 13-33

 PROJECT PROFILE Page No. 34-78

Content of Project Profile Page No. 35

 RESEARCH METHDOLOGY

 ANALYSIS & INTERPRETATION

 FINDINGS

 RECOMMENDATIONS

 BIBLIOGRAPHY

 QUESTIONAIRE

2
 PREFACE

Summer training for 6-8 weeks in MBA course and study content of such

as practical knowledge. It makes the student confident and introduces them

about their hidden ability.

A Share trading company gives like ICICI direct.com offer their

services to the people so that they can trade in money market instruments

(like shares, Mutual funds etc.) easily without going from long processes

and all at one place.

To study the working a share trading company a research is

conducted in ICICI direct.com, which is among the largest private share

trading company.

For research data is collected from primary & secondary method

both.

3
 SELF EVALUATION

This Six Weeks Industrial Summer Training has led me to understand the

various investments, Online Trading by ICICI direct.com, working

procedure and dealing with customers of ICICI direct.com.

It has also enhanced my knowledge about the functioning and management

of an industry, which I am sure, will be beneficial to me in my career.

Shilpi Singla
Master Of Finance&Control
(Kurukshetra University,Kurukshetra)

4
INDUSTRY PROFILE

5
 INTRODUCTION to BSE

The Stock Exchange, Mumbai, popularly known as

"BSE" was established in 1875 as "The Native Share
and Stock Brokers Association". It is the oldest one in
Asia, even older than the Tokyo Stock Exchange, which was
established in 1878. It is a voluntary non-profit making
Association of Persons (AOP) and is currently engaged in the
process of converting itself into demutualised and corporate
entity. It has evolved over the years into its present status as the
premier Stock Exchange in the country. It is the first Stock
Exchange in the Country to have obtained permanent
recognition in 1956 from the Govt. of India under the Securities
Contracts (Regulation)Act,1956.

The Exchange, while providing an efficient and transparent

market for trading in securities, debt and derivatives upholds
the interests of the investors and ensures redressal of their
grievances whether against the companies or its own member-
brokers. It also strives to educate and enlighten the investors by
conducting investor education programmes and making
available to them necessary informative inputs.

A Governing Board having 20 directors is the apex body, which

decides the policies and regulates the affairs of the Exchange.
The Governing Board consists of 9 elected directors, who are
from the broking community (one third of them retire ever year
by rotation), three SEBI nominees, six public representatives
and an Executive Director & Chief Executive Officer and a
Chief Operating Officer.

The Executive Director as the Chief Executive Officer is

responsible for the day-to-day administration of the Exchange

6
and the Chief Operating Officer and other Heads of
Departments assist him.

The Exchange has inserted new Rule No.126 A in its Rules,

Bye-laws & Regulations pertaining to constitution of the
Executive Committee of the Exchange. Accordingly, an
Executive Committee, consisting of three elected directors,
three SEBI nominees or public representatives, Executive
Director & CEO and Chief Operating Officer has been
constituted. The Committee considers judicial & quasi matters
in which the Governing Board has powers as an Appellate
Authority, matters regarding annulment of transactions,
admission, continuance and suspension of member-brokers,
declaration of a member-broker as defaulter, norms, procedures
and other matters relating to arbitration, fees, deposits, margins
and other monies payable by the member-brokers to the
Exchange, etc.

Turnover on the Exchange

• The average daily turnover of the Exchange during the

financial year 2003-2004 and 2004-05 (April-March), was
Rs. 1978.81 crores and Rs. 2050.26 crores respectively.
• The average number of daily trades recorded during the
above period was 7.98 lakhs and 9.38 lakhs respectively.
The ban on all deferral products like Borrowing & Lending of
Securities Scheme (BLESS) and Automated Lending &
Borrowing Mechanism (ALBM) in the Indian capital markets by
SEBI w.e.f. July 2, 2001, abolition of account period
settlements, introduction of Compulsory Rolling Settlements in
all scrips traded on the Exchanges w.e.f. December 31, 2001,
etc. have adversely impacted the liquidity in the market and
consequently there is a considerable decline in the average
daily turnover at the Exchange as reflected in above statistics.

7
 Introduction to NSE

The National Stock Exchange (NSE) is India's leading stock

exchange covering various cities and towns across the country.
NSE was set up by leading institutions to provide a modern,
fully automated screen-based trading system with national
reach. The Exchange has brought about unparalleled
transparency, speed & efficiency, safety and market integrity. It
has set up facilities that serve as a model for the securities
industry in terms of systems, practices and procedures.

The National Stock Exchange was set up in 1995 as a first step in

reforming the securities market through improved technology and
introduction of best practices in management. It started with the concept of
an independent governing body without any broker representation thus
ensuring that the operators' interests were not allowed to dominate the
governance of the exchange.

Before the NSE was set up, trading on the stock exchanges in India used to
take place through open outcry without use of information technology for
immediate matching or recording of trades. This was time consuming and
inefficient. The practice of physical trading imposed limits on trading
volumes and, hence, the speed with which new information was
incorporated into prices. To obviate this, the NSE introduced screen-based
trading system (SBTS) where a member can punch into the computer the
quantities of shares and the prices at which he wants to transact. The
transaction is executed as soon as the quote punched by a trading member
finds a matching sale or buy quote from counterparty. SBTS electronically
matches the buyer and seller in an order-driven system or finds the
customer the best price available. With SBTS, it becomes possible for
market participants to see the full market, which helps to make the market
more transparent, leading to increased investor confidence.

8
NSE has played a catalytic role in reforming the Indian
securities market in terms of microstructure, market practices
and trading volumes. The market today uses state-of-art
information technology to provide an efficient and transparent
trading, clearing and settlement mechanism, and has witnessed
several innovations in products & services viz. demutualisation
of stock exchange governance, screen based trading,
compression of settlement cycles, dematerialisation and
electronic transfer of securities, securities lending and
borrowing, professionalisation of trading members, fine-tuned
risk management systems, emergence of clearing corporations
to assume counterparty risks, market of debt and derivative
instruments and intensive use of information technology.

9
 Introduction to Financial Market

The function of the financial market is to facilitate the transfer of funds

from surplus sectors (lenders) to deficit sectors (borrowers). Normally,
households have investible funds or savings, which they lend to borrowers
in the corporate and public sectors whose requirement of funds far exceeds
their savings. A financial market consists of investors or buyers of
securities, borrowers or sellers of securities, intermediaries and regulatory
bodies. Financial market does not refer to a physical location. Formal
trading rules, relationships and communication networks for originating
and trading financial securities link the participants in the market.

Organized money market: Indian financial system consists of money

market and capital market. The money market has two components - the
organized and the unorganized. The
organized market is dominated by commercial banks. The other major
participants are the Reserve Bank of India, Life Insurance Corporation,
General Insurance Corporation, Unit Trust of India, Securities Trading
Corporation of India Ltd. and Discount and Finance House of India, other
primary dealers, commercial banks and mutual funds. The core of the
money market is the inter-bank call money market whereby short-term
money borrowing/lending is
effected to manage temporary liquidity mismatches. The Reserve Bank of
India occupies strategic position of managing market liquidity through
open market operations of government
securities, access to its accommodation, cost (interest rates), availability of
credit and other monetary management tools. Normally, monetary assets of
short-term nature, generally less than one year, are dealt in this market.

Un-organized money market: Despite rapid expansion of the organized

money market through
a large network of banking institutions that have extended their reach even
to the rural areas,
there is still an active unorganized market. It consists of indigenous
bankers and moneylenders.

10
In the unorganized market, there is no clear demarcation between short-
term and long-term finance and even between the purposes of finance. The
unorganized sector continues to provide finance for trade as well as
personal consumption. The inability of the poor to meet the
"creditworthiness" requirements of the banking sector make them take
recourse to the institutions that still remain outside the regulatory
framework of banking. But this market is shrinking.

The capital market: Consists of primary and secondary markets. The

primary market deals with the issue of new instruments by the corporate
sector such as equity shares, preference shares and debt instruments.
Central and State governments, various public sector industrial units
(PSUs), statutory and other authorities such as state electricity boards and
port trusts also issue bonds/debt instruments.
The primary market in which public issue of securities is made through a
prospectus is retail market and there is no physical location. Offer for
subscription to securities is made to investing community. The secondary
market or stock exchange is a market for trading and settlement of
securities that have already been issued. The investors holding securities
sell securities through registered brokers/sub-brokers of the stock
exchange. Investors who are desirous of buying securities purchase
securities through registered brokers/sub-brokers of the stock exchange. It
may have a physical location like a stock exchange or a trading floor.
Since 1995, trading in securities is screen-based and Internet-based trading
has also made an appearance in India.

The secondary market consists of 23 stock exchanges including the

National Stock Exchange, Over-the-Counter Exchange of India (OTCEI)
and Inter Connected Stock Exchange of India Ltd. The secondary market
provides a trading place for the securities already issued, to be bought and
sold. It also provides liquidity to the initial buyers in the primary market to
re offer the securities to any interested buyer at any price, if mutually
accepted. An active secondary market actually promotes the growth of the
primary market and capital formation because investors in the primary
market are assured of a continuous market and they can liquidate their
investments.

11
Capital Market Participants: There are several major players in the primary
market. These include the merchant bankers, mutual funds, financial
institutions, and foreign institutional investors (FIIs) and individual
investors. In the secondary market, there are the stock brokers (who are
members of the stock exchanges), the mutual funds, financial institutions,
foreign institutional investors (FIIs), and individual investors. Registrars
and Transfer Agents, Custodians and Depositories are capital market
intermediaries that provide important infrastructure services for both
primary and secondary markets. Market regulation: It is important to
ensure smooth working of capital market, as it is the arena where the
players in the economic growth of the country. Various laws have been
passed from time to time to meet this objective.

12
COMPANY PROFILE

13
ICICI Limited (INDUSTRIAL CREDIT AND INVESTMENT
CORPORATION OF INDIA) as founded by the Govt. of India, World
Bank and representative of private industry on January 5, 1955 to
encourage and asset industrial development and investment in India. The
date of commencement of business was March 1, 1955. Over the years,
ICICI has evolved in to a diversified financial institution.

The study integration of the Indian economy with the global markets has
accelerated trends of increasing disinter mediation and growing
competition from global players. ICICI has capitalized on the customer’s
demand for efficient, high quality products and services to increase market
share and insure a grater “share of the customer’s wallet”. The ICICI
group, with its strong corporate franchise, in-depth knowledge of Indian
industry and arguably the best pool of human talent in Indian financial
sector, is uniquely positioned to take advantage of this opportunity.

Innovation has emerged as the vital ingredient for success in the

information age, for the acquisition and retention of the customers. ICICI
has successfully harnessed the INTERNET as a strategic tool, both to
promote its financial services and to disseminate information. During the
year, ICICI launched ICICI market.com a finance portal targeting our
clientele in the wholesale banking, with a view to bringing all over
products and services online.

The strategy of using ICICI’s client-centric relationship groups to actively

cross self-the full range of their products and services to their client as has
yielded desired results, as exemplified in the robust growth. They
continued to restrict their exposure in corporate finance products segment,
they have continued to focus on structure project finance in the
infrastructure and oil, gas and petrochemical sectors. ICICI was able to
offer range of experience and expertise for critical policy related matters in
various sectors, thereby reinforcing its role in fostering the economic
development of the nation.

14
 Overview

ICICI Bank is India's second-largest bank with total assets of about Rs. 1,
67,659 crore at March 31, 2005 and profit after tax of Rs. 2,005crore for
the year ended March 31, 2005 (Rs. 1,637crore in fiscal 2004). ICICI Bank
has a network of about 560 branches and extension counters and over
1,900 ATMs. ICICI Bank 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 subsidiaries and affiliates in
the areas of investment banking, life and non-life insurance, venture capital
and asset management. ICICI Bank set up its international banking group
in fiscal 2002 to cater to the cross border needs of clients and leverage on
its domestic banking strengths to offer products internationally. ICICI
Bank currently has subsidiaries in the United Kingdom and Canada,
branches in Singapore and Bahrain and representative offices in the United
States, China, United Arab Emirates, Bangladesh and South Africa.

ICICI Bank's equity shares are listed in India on the Stock Exchange,
Mumbai and the National Stock Exchange of India Limited and its
American Depositary Receipts (ADRs) are listed on the New York Stock
Exchange (NYSE).

As required by the stock exchanges, ICICI Bank has formulated a Code of

Business Conduct and Ethics for its directors and employees.

15
At April 4, 2005, ICICI Bank, with free float market capitalization* of
about Rs. 308.00 billion (US$ 7.00 billion) ranked third amongst all the
companies listed on the Indian stock exchanges.

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian

financial institution, and was its wholly owned subsidiary. ICICI's
shareholding in ICICI Bank was reduced to 46% through a public offering
of shares in India in fiscal 1998, an equity offering in the form of ADRs
listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of
Madura Limited in an all-stock amalgamation in fiscal 2001, and
secondary market sales by ICICI to institutional investors in fiscal 2001
and fiscal 2002. ICICI was formed in 1955 at the initiative of the World
Bank, the Government of India and representatives of Indian industry. The
principal objective was to create a development financial institution for
providing medium-term and long-term project financing to Indian
businesses. In the 1990s, ICICI transformed its business from a
development financial institution offering only project finance to a
diversified financial services group offering a wide variety of products and
services, both directly and through a number of subsidiaries and affiliates
like ICICI Bank. In 1999, ICICI become the first Indian company and the
first bank or financial institution from non-Japan Asia to be listed on the
NYSE.

After consideration of various corporate structuring alternatives in the

context of the emerging competitive scenario in the Indian banking
industry, and the move towards universal banking, the managements of
ICICI and ICICI Bank formed the view that the merger of ICICI with
ICICI Bank would be the optimal strategic alternative for both entities, and
would create the optimal legal structure for the ICICI group's universal
banking strategy. The merger would enhance value for ICICI shareholders
through the merged entity's access to low-cost deposits, greater
opportunities for earning fee-based income and the ability to participate in
the payments system and provide transaction-banking services. The merger
would enhance value for ICICI Bank shareholders through a large capital
base and scale of operations, seamless access to ICICI's strong corporate
16
relationships built up over five decades, entry into new business segments,
higher market share in various business segments, particularly fee-based
services, and access to the vast talent pool of ICICI and its subsidiaries. In
October 2001, the Boards of Directors of ICICI and ICICI Bank approved
the merger of ICICI and two of its wholly owned retail finance
subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital
Services Limited, with ICICI Bank. Shareholders of ICICI and ICICI
BANK approved the merger in January 2002, by the High Court of Gujarat
at Ahmedabad in March 2002, and by the High Court of Judicature at
Mumbai and the Reserve Bank of India in April 2002. Consequent to the
merger, the ICICI group's financing and banking operations, both
wholesale and retail, have been integrated in a single entity.

*Free float holding excludes all promoter holdings, strategic investments

and cross holdings among public sector entities.

17
 ICICI Bank Limited
ICICI Bank Towers
Bandra Kurla Complex
Mumbai 400
051
-----------------------------------------------------------------------------------
-------

What is ICICI direct.com?

ICICI direct.com is the portal of ICICI Web Trade Limited that is the
branch of ICICI Group and comes under the working of ICICI Bank. ICICI
direct.com help the customers to trade\deal in the money market
instruments like Equity, Mutual Funds, Insurance, Governments Bonds &
Securities (NSC, KVP RBI Bonds etc.).

How a person can start trading through ICICI Direct.com

A person can start trading through ICICI direct.com by simply

opening a 3 in 1 account (Saving a\c, Demat a\c, Trading a\c) of online
trading in ICICI Bank or in ICICI direct.com branch.

By trading through ICICI direct .com branch office like in Hisar a

person has two options that is he can handle all his trading himself by
opening a online account where he will get a User Id and a Password
with the help of which he can login on the ICICI direct.com portal and
can start doing his trading himself and by doing trading himself the
person will not get any kind of help by the branch officers in his day-
day trading except of any problem relating to his account which he has
opened in that branch.

On the other hand if a person is not able to work himself online and still he
want to trade through the ICICI direst.com the he will be provided with the
telephone trading. In telephone trading also a person has to fill the 3 in 1
account form for opening an account in the ICICI direct.com, in telephone
trading a person is provided with a User Id (a nick name) and with this a
person has to just call to branch of the ICICIdirect.com like in Hisar and
has to give his identification (User Id-nick name) then he can place his
18
 order like if he want to purchase some shares or want to sell his shares
apply for an IPO etc.

For working with ICIC direct.com a person is required to have a saving

account in the ICIC Bank through which all his money transaction will be
done, all the money transactions which is to be debited and which is to be
credited will be done automatically to his account by the bank, like if a
person has purchased some shares then he has to made payment for that for
that he is not required to make any Demand draft or issue any Cheques the
amount payable by him will be debited to his account automatically and if
he has sold some shares then the amount receivable by him will be credited
to his account automatically.

ICICIdirect.com Events Calendar

SAVING A/C Year Month Event

2000 January Launch of ICICIdirect

April Started Operation
October Started Margin Trading
December Launch of Mutual Fund Plaza

2001 July Qualities for KPMG’S first Web Seal in Asia

July Launch of Spot Trading
October Launch of Call N Trade
December Launch of Cash Trading on BSE

19
2002 January Started investment in IPO online
February Started investment in Bonds Online
March Launched India’s first digitally signed
Contract Notes
April Launched Trading in Futures
May Launched BTST (Buy Today Sell Tomorrow)
June Launched Trading In Options
July Launched Mobile Alerts
October Crossed 2lac customer base

2003 July Launched Margin Plus

December Awarded “Best E-Brokerage House” By
Outlook Money

2004 February Launched Wise Invest

April Money Manager new letter launched
November Launched Investor Planning and Ideal
Portfolio
December Crossed 5lac customer base

20
ICICI DIRECT.COM GROUPS

EMBED
Word.Picture.8

21
ICICI GROUPS
RETAIL FINANCIAL SERVICES
ICICI
BONDS
LOANS
FIXED DEPOSITS
DEMAT SERVICES

ICICI BANK
RETAIL BANKING SERVICES
INTERNET BANKING SERVICES

CORPORATE BANKING SERVICIES

WORKING CAPITAL FINANCE
CASH MANAGEMENT SERVICES

ICICI PRUDENTIAL
LIFE INSURANCE

ICICI CAPITAL
MARKETING, DISTRIBUTION AND
SERVICING OF FINANCIAL PRODUCTS

ICICI INFOTECH
SOFTWARE SOLUTION
IT ENABLED SERVICES
SHAREHOLDER AND BONDHOLDER
SERVICING

ICICI WEB TRADE

ONLINE SHARE TRADING
ONLINE IPO
TRADING IN DERIVATIVES (FUTURE AND OPTION)

22
ICICI HOME
HOUSING FINANCE

ICICI PERSONAL FINANCIAL SERVICES

DISTRIBUTION AND SERVICING OF
RETAIL LOAN PRODUCTS

CORPORATE FINANCIAL SERVICING

ICICI
PROJECT FINANCE
TRASURY SERVICES

ICICI SECURITIES
INVESTMENT BANKING
PRIMARY DEALERSHIP

ICICI BROKERAGE
EQUITY BROKING
EQUITY RESEARCH

ICICI LOMBOARD
GERNAL INSURANCE

ICICI VENTURE
OFFSHORE AND SOMESTIC
PRIVATE EQUITY

ICICI KINFRA
INFRASTRUCTURE PROJECT DEVELOPMENT IN KERALA

23
ICICI WINFRA
INFRASTRUCTURE PROJECT DEVELOPMENT IN WEST
BENGAL

ICICI INTERNATIONAL
OFFSHORE INVESTMENT
OFFSHORE FUND MANAGEMENT

ICICI KNOWLEDGE PARK

INFRASTRUCTURE AND SUPPORT FACILITIES FOR BUISNESS
DRIVEN RESEARCH

24
 ICICI Bank Press releases 2006

• 24/07/2006 ICICI Bank bottomline rises 17%

• 24/07/2006 ICICI Bank sizzles on strong Q1 show
• 24/07/2006 SBI to issue hybrid capital instruments abroad
• 13/07/2006 Bigger cheques for bank bosses
• 11/07/2006 ICICI Bank gains Rs 403.24 cr from sale of securitised
assets
• 08/07/2006 Bajaj picks up 1.42% in ICICI
• 07/07/2006 ICICI Bank sells 5.4% stake in 3i Infotech
• 06/07/2006 ICICI Bank to speed up rural networking
• 03/07/2006 ICICI-Current Price: 500.35 Target Price : 530
• 10/06/2006 ICICI Bank moves up lending rates by 50 bps
• 07/06/2006 SIDBI buys Rs 450 crore SME credit portfolio from
ICICI Bank
• 02/06/2006 NRE, FCNR(B) RATES UP-Banks
• 10/05/2006 Banks feel IPO scam tremor
• 08/05/2006 IA, ICICI Bank ink $152 mn funding pact
• 06/05/2006 ICICI hikes home loan rates
• 06/05/2006 Rate hike
• 05/05/2006 ICICI Bank set for fresh round of rate hikes
• 05/05/2006 BRANCH IN BELGIUM-ICICI Bank UK
• 03/05/2006 ICICI Bank inflates on strong Q4 outcome, scales all-
time high
• 02/05/2006 ICICI `touch point' every 10 km
• 02/05/2006 ICICI Bank: Asset growth
• 01/05/2006 ICICI Bank net up 29% to Rs 790 crore
• 01/05/2006 IBP losses
• 26/04/2006 Soft selling
• 20/04/2006 NRE DEPOSIT RATES-BoI, ICICI
• 13/04/2006 The farm is no freeway
• 07/04/2006 RBI BARS FIIs-ICICI Bank
• 05/04/2006 ICICI Bank to launch white label credit card
• 31/03/2006 ICICI offloads Mysore Cements stake
• 30/03/2006 ICICI Bank to raise Rs 4000 cr
• 23/03/2006 ICICI offloads SIB stake for Rs 30 cr

25
20/03/2006 ICICI Bank plans to rejig assets portfolio
• 17/03/2006 Liquidity expected to keep rates stable in near term
• 16/03/2006 ICICI Bank to cover 60 districts by year end
• 14/03/2006 ICICI Bank hikes PLR for corporates by 100 bps
• 14/03/2006 ICICI Bank sells Fed Bank shares to IFC
• 13/03/2006 ICICI BANKING CORP-Current Price: 614-Target
Price : 630
• 09/03/2006 Intel, ICICI Bank tie up to finance SME tech needs
• 07/03/2006 ICICI Bank to jack up PLR afresh
• 03/03/2006 MOSCOW BRANCH-ICICI Bank
• 28/02/2006 ICICI Bank strikes form
• 21/02/2006 ICICI Bank ties up with BayernLB
• 20/02/2006 ICICI Bank, Bayern LB, Germany, to co-operate
• 20/02/2006 ICICI Bank, Bayern LB, Germany, to co-operate
• 20/02/2006 ICICI Bank, Bayern LB, Germany, to co-operate
• 15/02/2006 ICICI Bank ups corporate lending rate by 50 bps
• 09/02/2006 ICICI, SBI to hike home loan rates
• 08/02/2006 Allied Digital bags ICICI Bank deal
• 30/01/2006 ICICI-Current price: 619.55 -Target price : 660
• 25/01/2006 RBI to probe controls of IPO-tainted banks
• 23/01/2006 UTI - Growth & Value Fund - (G) buys ICICI Bank in
December 2005
• 21/01/2006 ICICI Bank net up at Rs 640 cr
• 20/01/2006 ICICI Bank Q3 net at Rs 640.08 crore
• 17/01/2006 IPO scam derails banks' US plans
• 14/01/2006 ICICI Bank the first to go mobile in UK
• 14/01/2006 ICICI Bank hikes interest rate for corporate loans
• 13/01/2006 ICICI Bank hikes PLR by 25 bps
• 05/01/2006 ICICI Bank multiple-asset pool gets first AAA rating
03/01/2006 REVISES RATES-ICICI Bank

ICICI Bank Press Release

| 2005 |

26
PROJECT PROFILE

27
 CONTENTS

 TRADING PROCEDURE Page No.32

 TRADING MECHANISM Page No. 33-40

 EQUITY SHARES Page No. 41-43

 PREFERENCE SHARES Page No. 44-46

 TRADING IN SHARES Page No. 47

 DERIVATIVES (FUTURES & OPTIONS) Page No. 48-53

 MUTUAL FUNDS Page No. 54-68

 INVESTING IN MUTUAL FUNDS Page No. 69

 IPO’S & BONDS Page No.70

 FEATURES OF ICICI DIRECT. COM Page No. 70-71

 ADVANTAGES OF ICICI DIRECT.COM Page No. 72

28
 CUSTOMER

SAVING A/C TRADING A/C DEMAT A/C

TRADING

OWN
TRADIN
G BY
NET DBC

PASSWORD &
ID NICKNAME BY
DBC

SELF
TRADING

ORDE
R SELF
PLACE PRESE
D TO NT
DBC
BY
TELE

PLACING AN ORDER PLACING AN ORDER

TRADING 29
TRADING
 1. Select Account :-
First we have to select account in which the trading is to be done.
Insert account number in the select a/c no., column.
Then select go to, column various options of trading will be opened
& than click on in which the trading is to be done.
For eg. Equity
Mutual funds
Commodities
Derivatives
Ipo’s
Insurance

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Thursday, August 03, 2006,12:20 IST

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® trademark registration in respect of the concerned mark has been applied for by ICICI Bank Limited
NSE SEBI Registration Number Capital Market :- INB 231147639 | BSE SEBI Registration Number Capital Market :- INB 011147635

30
 NSE SEBI Registration Number Derivatives :- INF 231147639

2. Modify Allocation:-
After opening the account for which the trading is to be done, we will
choose the investment alternatives in which the trading is to be
done like equity, derivatives etc. If an investor want to buy than we
will allocate the money from saving account through modify
allocation infront of column side to investment alternatives.
For eg. If we want to buy equity shares in that case allocate money
from saving account in front of equity column.
If we want to invest in derivatives, mutual funds, ipo’s same
procedure as explained in equity will be applied.

MODIFY ALLOCATION
Bank Account Total Bank
Account : 8500325406 : 017201502189 : Rs. 20,725.22
No. Balance
Blocked for
Block For Current Allocation Add / Reduce Amount
Trade

Secondary Market Equity 0.00 0.00

Futures & Options 0.00 0.00

Commodity 0.00 0.00

Postal Savings,MFs,IPO & Others 0.00

Gross Allocation 0.00

Net Withdrawal Balance 20,725.22 SUBMIT Clear

31
 3. DEMAT ALLOCATION:-

You can see details of the stocks in the demat accounts linked with
your E-brokerage account on this page. The current market value of
each of the stocks can also be seen. Each stock has an associated
ISIN no. It is possible that a stock is associated with more than one
ISINnos.

Against each stock, the total balance and the available balance is
displayed. The available balance indicates the number of shares
that can be sold. The available balance is less than the total
balance when some shares have been sold. Such quantity is
indicated as blocked or under TIFD and cannot be sold. The
quantity remains blocked till the Securities pay -in -date for the
Settlement. After tjat the quantity is shifted to the TIFD(Transfer
Instrution For Debit) column which indicates that the quantity is in
the process of being debited from the account on settlement.

Please note that no separate instructions need to be issued to the

depository participant(DP) for debiting the account in case of a net
sell obligation. The shares get automatically debited from the DP
account in case of a net sell obligation and credited in the event of
a buy sell obligation.

32
 DEMAT BALANCE

Account IN300183-11520437- Stock Find

: 8500215946 Code: Symbol
ALLOCATED SECURITIES Help

33
 Total Blocked Block Current
Allocated Market Buy /
Stock Demat for For Market Allocate/DeAllocate Qty
Qty Value Sell
Balance Trade Margin Price
ALKSPI 1500 0 0 0.53 795.00 Buy Sell
COMWI 100 0 0 NA NA Buy Sell
DYNSYS 8250 0 0 0.32 2,640.00 Buy Sell
ESSSTE 120 0 0 34.90 4,188.00 Buy Sell
GAMIND 15 0 0 325.05 4,875.75 Buy Sell
HUGTEL 300 0 0 18.60 5,580.00 Buy Sell
INDGAS 50 0 0 112.00 5,600.00 Buy Sell
KARBAN 100 0 0 99.35 9,935.00 Buy Sell
MIRELE 200 0 0 15.75 3,150.00 Buy Sell
MRPL 300 0 0 35.90 10,770.00 Buy Sell
NATSTE 100 0 0 21.05 2,105.00 Buy Sell
NORTEA 100 0 0 4.10 410.00 Buy Sell
RALIND 30 0 0 263.50 7,905.00 Buy Sell
RELPET 200 0 0 60.75 12,150.00 Buy Sell
TELDAT 200 0 0 10.60 2,120.00 Buy Sell
TOTAL 72,223.75

4. ORDER BOOK:-
The page represents the current status and other details of buy/sell
orders placed by you. The details are updated on real-time basis
and the latest status can be verified by refreshing the page.
Each order has an Order Ref. No. which is an internal no. assigned
by ICICI Direct.Com.

34
Order book can be explained:-
• Buy order
• Sell order

Buy order:-
This order book is used when an investor want to place the order in
equity or derivatives. For purchasing equity shares order has to be
placed in equity order book. If investor want to invest in derivatives
than order is placed in derivative order book.

BUY STOCKS
Account : IN302679-32836794-8500325406

Exchange : Product :
NSE BSE
Stock : Find Stock Code

Quantity : Get Quote

Order Type : Best 5 Bids/Offers

Market Limit
Protection
Limit Price : :
% Explain
Disclosed Quantity :

Stop Loss Trigger Buy Now

:
Price Explain

Nickname :

Sell order:-
This sell order book is used when an investor want to sell the
stocks which are available in the investors demat account. For
selling the investor has to equity sell order book. If investor want
to sell the derivatives than order is placed in derivatives sell order
book.

SELL STOCKS
Account : IN302679-32836794-8500325406

Exchange : Product :
NSE BSE
Stock : Find Stock Code

Quantity : Get Quote

Order Type : Best 5 Bids/Offers

Market Limit

35
 Protection
Limit Price : :
% Explain
Disclosed Quantity :

Stop Loss Trigger Sell Now

:
Price Explain

Nickname :

5. Trade Book:-
The Trade book shows details of the trades executed for you. The
details are updated on a real time basis and the latest status can be
verified by refreshing the page.

Further trades can be selected either on the basis of

• Settlement No or
• Date From and Date To

1. All the Trades for the same order are shown together.
Multiple trades for the same Order Ref. No. to be
aggregated and shown as a single entry in the Trade
Book. Clicking the Order Ref, No. will show you the
details of the trades for that particular Order Reference
Number.
2. Clicking on the DP ID-DP client id will show you the
Security projection for that particular selection of
exchange, segment and settlement.
3. Clicking the settlement will show the cash projections for
the particular selection of exchange, segment and
settlement. This page will also give you the display of the
date and the amount of cash Pay In/ Cash Pay out
debited credited to your bank account with date and time.
4. In case stock code is blank or has been selected as ALL
than Net Value to be shown at the bottom of the table.

5. On clicking on the update portfolio button. All the selected

trade’s will be updated in the portfolio page. The updation
of trade’s from the trade book to portfolio can be done
only once. In case the customer want to update his

36
 portfolio again from the trade book he will have to write to
EQUITY - TRADE BOOK: Orders executed on previous trading days can be viewed during non-trading hours and
trading holidays only.
Account : 8500508229 Date From : Date To :

Stock Code : Exchange : Product :

View

DP Id -
Trade Brokerage
Date Stock Action Qty. Price# Order Ref. Settlement Segment Client DP Exchange U / P
Value incl. taxes
Id
04-
IN300183-
Aug- BHEL Buy 5 2,148.00 10,740.00 0.00 20060804N300000581 2006147 Rolling NSE
2006 11570506

Total (10,740.00) 0.00 UPDATE PORTFOLIO

helpdesk@icicidirect.com

6. Security projection:-
The page gives details of date-wise net future security inflows
/outflows due to/from you and the resultant balances.
All transactions executed on your account for each stock are
aggregated for each settlement to arrive at the net quantity of stock
receivable by or payable to you for the settlement. This quantity is
credited (in case of a net buy position) or debited (in case of a net
sell position) to your Demat Account on the date specified as the
Securities pay-in/pay-out date of clients for the settlement. Security
projections provides the quantity of such debit or credit will take
place. Details of all transactions relating to that particular stock can
be viewed by clicking the on the link ‘Stock’.
You can place a Buy Today Sell Tomorrow (BTST) order against a
buy position through the Security Projections page by using the
hyperlink “BTST sell.” The Security Projection also gives the
following additional information.
• Weighted average price: This will show the weighted average
price of that particular position.
• Maximum sell quantity permitted: This is the maximum
quantity allowed to be sold in BTST for the particular position.

37
 • Blocked Quantity: On successful order placement the order
quantity is shown in the blocked quantity of the Security
Projections.
• Available quantity. The available quantity is the Maximum
order quantity allowed to be placed after considering the
BTST orders already placed. This is equal to:

Available Quantity= Maximum Sell Quantity Permitted-Blocked

Quantity
For stocks which are not permitted to be traded in BTST the
columns of Maximum Sell Qty. permitted. Blocked Qty and Available
quantity show NA and the BTST Sell Hyperlink does not appear in
the Security Projections.
Sale in BTST is permitted only till on T+1 and T+2 days (and not on
T+3 i.e. pay –in/pay-out of the Exchange). In other words , BTST
shall be permitted only up to the day prior to the scheduled payout
of shares from the Exchange.

SECURITY PROJECTION & BTST®

Account : 8500325063
Buy Today Sell Tomorrow®
Security Projections
(BTST®)
Weighted Max Sell
Settlement Blocked Available BTST®
Date Position Stock Quantity Exchange Segment. Average Qty
No. Qty Qty Sell
Price Permitted
09-
BTST®
Aug- BUY PETLNG 300 NSE Rolling 2006147 46.20 300 0 300
Sell
2006
09-
BTST®
Aug- BUY PRAIN 200 NSE Rolling 2006147 161.99 200 0 200
Sell
2006
09-
Aug- BUY SUBROS 200 NSE Rolling 2006147 194.18 NA NA NA
2006

7. Calculation Of Business:-
Lastly after 3.30pm for calculating he business the Trade done in a
particular period is calculated after adding all the trades done in a
particular day. Through viewing the trade book we can know the
trades done for any particular date, week or month.

Trading is done in following;-

38
EQUITY SHARES

Equity shares are commonly referred to common stock or ordinary share.

Even though the words shares and stocks are interchangeably used, there is
a difference between them. Share capital of a company is divided into a
number of small units of equal value called shares. The term stock is the
aggregate of a member’s fully paid up shares of equal value merged into
one fund. It is a set of shares put together in a bundle. The “stock” is
expressed in terms of money and not as many shares. Stock can be divided
into fractions of any amount and such fractions may be transferred like
shares.

Share certificate means a certificate under the common seal of the

company specifying the number of shares held by any member. Share
certificate provides the prima facie evidence of title of the members to
such shares. This gives the shareholder the facility of dealing more easily
with his share in the market. It enables him to sell his shares by showing
marketable title.

Rights of equity shareholders according to section 85(2) of companies

Act 1956.

• Right to vote at the general body meetings of the company.

• Right to control the management of the company.
• Right to share in the profits in the form of dividends and
bonus shares.
• Right to claim on the residual after repayment of all the
claims in the case of winding up of the company.
• Right of pre-emption in the matter of issue of new capital.
• Right to apply to court if there is any discrepancy in the
rights set aside.
• Right to receive a copy of statutory report, copies of
annual accounts along with audited report.
• Right to apply the central government to call an annual
meeting when a company fails to call such a meeting.

39
 • Right to apply the Company law Board for calling an
extraordinary general meeting.

In a limited company the equity shareholders are liable to pay the

company’s debt only to the extent of their share in the paid up capital. The
equity shares have certain advantages.

Trading In Equity

The use of fixed charges sources of funds such as debt and preference
capital alongwith owner’s equity in the capital structure is described as
trading on equity or financial leverage. Under it, management can increase
income for the equity shareholders by using less amount of ordinary share
capital.

“When a person or a corporation uses borrowed capital as well as owned

capital in the regular conduct of business he or it is said to be trading on
equity.”

“The use of borrowed funds, at a fixed cost of financing a firm is known as

trading on equity.”

The main objective of trading on equity is to increase earnings per share

for equity shareholders by issuing low dividend preferred stock and low
interest debts. Company uses trading on equity in the circumstances when
the rate of profit earned on the borrowed funds will be greater than the rate
of interest payable on them. Greater the rate of earnings on the total
capitalization as compared to the rate of interest payable on and other
debts, grater will be the rate of dividend on equity shares. For eg: if a
company borrows Rs. 100 @8% and earns 12% on this amount, it will be
able to save Rs. 4 for the equity shareholder after paying the interest. It is
called trading on equity because owned capital is considered as basis of
issue of preference share capital and debt capital. Debt holders have
limited share in the profits of the business, therefore, they want safety from
the side of owned capital.

40
Objectives of Trading on Equity

• To increase the rate of dividend on ordinary share capital.

• To control more financial resources by using more loaned capital on
the basis of owned capital.
• To centralize the right of voting in a few hands.

Types of Trading on Equity

Trading on Thin Equity:- When a company the amount of equity share

capital is less as compared to debentures and preference share capital, it is
called trading on thin equity.

Trading on Thick Equity:- When in total capitalistion the amount of loan

capital and preference share capital are low as compared to equity share
capital, it is called trading on thick equity.

Significance of Trading on Equity

By following the policy of trading on equity, financial management can

form a fair capital structure. While determining the capital structure it is
necessary to consider the effects of debt on cost of capital and financial
risk. By analyzing the policy of trading on equity, management can
acknowledge this effect. By financial risk we mean the inability of the firm
to meet fixed financial cost. In addition, management can make profit
planning with the help of policy of trading on equity.

Limitations of Trading on Equity

The policy of trading on equity is used for increasing the income of

ordinary shareholders. But it has following limitations:-

• If the income is irregular and uncertain, this policy is not good for
such business because in the years of low income, the burden of
interest rises.

41
 • If the rate of income earned is less than the rate of interest payable,
the policy of trading on equity will reduce the income for equity
shareholders rather than increasing it. Similarly, if the income of the
company before paying interest and taxes is equal to the interest
payable on loans, shareholders will not get any dividend, and it can
reduce the market price of shares.
• By taking more loans, the interference of debt holders increases. It
can cause difficulty to raise additional capital in future.
• Sometimes, loan capital is profitable but due to the limitations
imposed by the Articles and Memorandum or by the prevailing laws
of a country, it is not possible to raise debt beyond a certain limit.

Preference Shares

Preference shares are those shares which get preferential

treatment while receiving dividend as compared to equity
shares. Like bonds, their claims on the company’s income are
limited and they receive fixed dividend. In the event of
liquidation of the company their claims on the assets of the firm
are also fixed. The decision to pay dividend to the preferred
stock is at the discretion of the Board of Directors. In the case
of bonds, payment of interest rate is mandatory.

The dividend received by the preferred stock is treated on par

with the dividend received from the equity share for the tax
purpose. These shareholders do not enjoy any of the voting
powers except when any resolution affects their rights.

Types of preference shares

Cumulativpeference shares: The cumulative total of

all unpaid preferred dividends must be paid before dividends
are paid on common equity. The arrearages do not earn interest.
The non payment of dividend only continues to grow. The
arrearages accrue only for a limited number of years and not
indefinitely. Generally three years of arrears accrue and
42
accumulative feature ceases after three years. But the dividends
in arrears continue if there is no such provision in the Articles
of Association. In the case of liquidation, no arrears of
dividends are payable unless there is a
provision for them in the Articles of Association.

Non-Cumulative preference shares: The dividend does not

accumulate. If there is no profit or inadequate profit in the
company in a particular year, the company does not pay it. In
the winding up of the company if preference and equity shares
are fully paid, they have no further rights to have claims in the
surplus. If there is a provision in the Articles of Association for
such claims, then they have the rights to claim.

Convertible preference shares: The convertibility feature makes

the preference share a more attractive investment security. The
conversion feature is almost identical with that of the bonds,
these preference shares are convertible as equity shares at the
end of the specifies period and are quasi-equity shares. This
gives the additional privilege of sharing the potential increase
in the equity value, along with the security and stability of
income.

Redeemable preference shares: If there is a provision in the

Articles of Association, redeemable preference share can be
issued. But redemption of the shares can be done only when

a) The partly paid up shares are made fully paid up.

b) The fund for redemption is created from the profits,
which would otherwise be available for distribution of
dividends of out of the proceeds of fresh issue of shares
for the purpose.
c) If any premium has to be paid on redemption, it should
be paid out of the profits of out of the company’s share
premium account.

RIGHT SHARES

43
Shares offered to existing shareholders at a price by the
company are called right shares. They are offered to the
shareholders as a matter of legal right. If a public company
wants to increase its subscribed capital by way of issuing shares
after two years from its formation date or one year from the
date of first allotment, whichever is earlier, such shares should
be offered first to the existing shareholders in proportion to the
capital paid up on the shares held by them at the date of such
offer. This pre-emptive right can be forfeited by the
shareholders through a special resolution. The shareholder can
renounce the right shares in favour of his nominee. He may
renounce all or part of the shares offered to him. The right
shares may be partly paid. Minimum subscription limit is
prescribed for right issues. In the event of company failing to
receive 90% subscription, the company shall have to return the
entire money received. At present, SEBI has removed this limit.

BONUS SHARES

Bonus share is the distribution of shares in addition to the cash

dividends to the existing shareholders. Bonus shares are issued
to the existing shareholders without any payment of cash. The
bonus issue is made out of free reserves built out of genuine
profit or share premium collected in cash only. The bonus issue
could be made only when all the partly paid shares, if any,
existing are made fully paid up.
The declaration of the bonus issue used to have favorable
impact on the psychology of the shareholders. Bonus shares are
declared by the directors only when they expect a rise in the
profitability. The issue shares of bonus shares enables the
shareholders to sell the shares and get capital gains while
retaining their original.
Trading in shares:

ICICIdirect.com offers you various options while trading in

shares.

44
Cash Trading : This is a delivery based trading system, which
is generally done with the intention of taking delivery of shares
or monies.

Margin Trading : You can also do an intra-settlement trading

upto 3 to 4 times your available funds, wherein you take long
buy/ short sell positions in stocks with the intention of squaring
off the position within the same day settlement cycle.
MarginPLUS Trading : Through MarginPLUS you can do an
intra-settlement trading upto 25 times your available funds,
wherein you take long buy/ short sell positions in stocks with
the intention of squaring off the position within the same day
settlement cycle. MarginPLUS will give a much higher
leverage in your account against your limits.
Spot Trading : This facility can be used only for selling your
demat stocks which are already existing in your demat
account. When you are looking at an immediate liquidity
option, 'Cash on Spot' may work the best for you, On selling
shares through "cash on spot", money is credited to your bank
a/c the same evening & not on the exchange payout date.
This money can then be withdrawn from any of the ICICIBank
ATMs.
BTST : Buy Today Sell Tomorrow (BTST) is a facility that
allows you to sell shares even on 1st and 2nd day after the buy
order date, without you having to wait for the receipt of shares
into your demat account.

DERIVATIVES (FUTURES & OPTIONS)

Derivatives:-

The term "Derivative" indicates that it has no independent value, i.e. its
value is entirely "derived" from the value of the underlying asset. The
45
underlying asset can be securities, commodities, bullion, currency, live
stock or anything else. In other words, Derivative means a forward, future,
option or any other hybrid contract of pre determined fixed duration,
linked for the purpose of contract fulfillment to the value of a specified real
or financial asset or to an index of securities.

With Securities Laws (Second Amendment) Act, 1999, Derivatives has

been included in the definition of Securities. The term Derivative has been
defined in Securities Contracts (Regulations) Act, as:-
Derivative includes: -
a. A security derived from a debt instrument, share, loan, whether
secured or unsecured, risk instrument or contract for differences or
any other form of security;
b. A contract which derives its value from the prices, or index of
prices, of underlying securities;
In a nutshell, Derivatives is a product whose value is derived from
the value of one or more basic variables, called bases (underlying asset,
index, or reference rate), in a contractual manner. The underlying asset can
be equity, foreign exchange, commodity or any other asset.
For example, wheat farmers may wish to sell their harvest at a future
date to eliminate the risk of a change in prices by that date. Such a
transaction is an example of a derivative. The price of this derivative is
driven by the spot price of wheat which is the “underlying”.

Derivatives

Most common derivative instruments traded at any stock exchange are : -

46
1) Futures:- A futures contract is an agreement between two parties to
buy or sell an asset at a certain time in the future at a certain price. Futures
contracts are special type of forward contracts in the sense that the former
are standardized exchange-traded contracts.

2) Options:- Options are of two types- 1. Calls

2. Puts
Calls: give the buyer the right but not the obligation to buy a given
quantity of the underlying asset, at a given price on or before a given future
date.
Puts: give the buyer the right, but not the obligation to sell a given quantity
of the underlying asset at a given price on or before a given date.

47
Future Contract

Futures Contract means a legally binding agreement to buy or sell the

underlying security on a future date. Future contracts are the
organized/standardized contracts in terms of quantity, quality (in case of
commodities), delivery time and place for settlement on any date in future.
The contract expires on a pre-specified date which is called the expiry date
of the contract. On expiry, futures can be settled by delivery of the
underlying asset or cash. Cash settlement entails paying/receiving the
difference between the price at which the contract was entered and the
price of the underlying asset at the time of expiry of the contract.
Option Contract
Options Contract is a type of Derivatives Contract which gives the
buyer/holder of the contract the right (but not the obligation) to buy/sell the
underlying asset at a predetermined price within or at end of a specified
period. The buyer / holder of the option purchases the right from the
seller/writer for a consideration which is called the premium. The
seller/writer of an option is obligated to settle the option as per the terms of
the contract when the buyer/holder exercises his right. The underlying
asset could include securities, an index of prices of securities etc.
Under Securities Contracts (Regulations) Act, 1956 options on
securities has been defined as "option in securities" means a contract for
the purchase or sale of a right to buy or sell, or a right to buy and sell,
securities in future, and includes a teji, a mandi, a teji mandi, a galli, a put,
a call or a put and call in securities;

48
 An Option to buy is called Call option and option to sell is called Put
option. Further, if an option that is in case of securities but not in index is
called American option and one that is on the basis of index only is called
European option. The price at which the option is to be exercised is called
Strike price or Exercise price.
Therefore, in the case of American options the buyer has the right to
exercise the option at anytime on or before the expiry date. This request for
exercise is submitted to the Exchange, which randomly assigns the
exercise request to the sellers of the options, who are obligated to settle the
terms of the contract within a specified time frame.
As in the case of futures contracts, option contracts can be also be
settled by delivery of the underlying asset or cash. However, unlike futures
cash settlement in option contract entails paying/receiving the difference
between the strike price/exercise price and the price of the underlying asset
either at the time of expiry of the contract or at the time of
exercise/assignment of the option contract.
Index Futures and Index Option Contracts
Futures contract based on an index i.e. the underlying asset is the
index, are known as Index Futures Contracts. For example, futures contract
on NIFTY Index and BSE-30 Index. These contracts derive their value
from the value of the underlying index.
Similarly, the options contracts, which are based on some index, are
known as Index option contracts. However, unlike Index Futures, the buyer
of Index Option Contracts has only the right but not the obligation to
buy/sell the underlying index on expiry. Index Option Contracts are

49
generally European Style options i.e. they can be exercised/assigned only
on the expiry date.
An index, in turn derives its value from the prices of securities that
constitute the index and is created to represent the sentiments of the market
as a whole or of a particular sector of the economy (Sectoral Index).
By its very nature, index cannot be delivered on maturity of the
Index futures or Index option contracts therefore, these contracts are
essentially cash settled on Expiry.
Derivatives: Minimum Contract Size

The Standing Committee on Finance, a Parliamentary Committee, at the

time of recommending amendment to Securities Contract (Regulation) Act,
1956 had recommended that the minimum contract size of derivative
contracts traded in the Indian Markets should be pegged not below Rs. 2
Lacs. Based on this recommendation SEBI has specified that the value of a
derivative contract should not be less than Rs. 2 Lacs at the time of
introducing the contract in the market.
Derivatives: Lot Size of a Contract
Lot size refers to number of underlying securities in one contract.
Additionally, for stock specific derivative contracts SEBI has specified that
the lot size of the underlying individual security should be in multiples of
100 and fractions, if any, should be rounded of to the next higher multiple
of 100. This requirement of SEBI coupled with the requirement of
minimum contract size forms the basis of arriving at the lot size of a
contract.
For example, if shares of XYZ Ltd are quoted at Rs.1000 each and
the minimum contract size is Rs.2 lacs, then the lot size for that particular
50
scripts stands to be 200000/1000 = 200 shares i.e. one contract in
XYZ Ltd. covers 200 shares.

Derivative Markets in India

Derivative trading in India takes can place either on a

separate and independent Derivative Exchange or on a separate
segment of an existing Stock Exchange. Derivative
Exchange/Segment function as a Self-Regulatory Organization
(SRO) and SEBI acts as the oversight regulator. The clearing &
settlement of all trades on the Derivative Exchange/Segment
would have to be through a Clearing Corporation/House, which is
independent in governance and membership from the Derivative
Exchange/Segment.
TRADE IN DERIVATIVES:
FUTURES
Through ICICI direct.com, you can now trade in index and
stock futures on the NSE. In futures trading, you take
buy/sell positions in index or stock(s) contracts having a
longer contract period of up to 3 months.
Trading in FUTURES is simple! If, during the course of the
contract life, the price moves in your favour (i.e. rises in case
you have a buy position or falls in case you have a sell
position), you make a profit.
Presently only selected stocks, which meet the criteria on
liquidity and volume, have been enabled for futures trading.

51
Calculate Index and Know your Margin are tools to help you in
calculating your margin requirements and also the index & stock
price movements. The ICICIDIRECT UNIVERSITY on the HOME
page is a comprehensive guide on futures and options trading.

MUTUAL FUND

Like most developed and developing countries the mutual fund

cult has been catching on in India. There are various reasons for
this. Mutual funds make it easy and less costly for investors to
satisfy their need for capital growth, income and/or income
preservation.
A Mutual Fund is a professionally managed collective investment
fund formed with the objective of raising money from large
number of investors. An assets management company manages
and monitors this investment in order to maximize benefits to the
investors. Mutual Funds mainly cater to small investor and
manage portfolio in a manner that provides regular income, safety
and liquidity.
And in addition to this a mutual fund brings the benefits of
diversification and money management to the individual investor,
providing an opportunity for financial success that was once
available only to a select few.
For the individual investor, mutual funds provide the benefit of
aving someone else manage your investments and diversify your
money over many different securities that may not be available or
affordable to you otherwise. Today, minimum investment
52
requirements on many funds are low enough that even the
smallest investor can get started in mutual funds.
Understanding Mutual funds is easy as it's such a simple concept:
a mutual fund is a company that pools the money of many
investors -- its shareholders -- to invest in a variety of different
securities. Investments may be in stocks, bonds, money market
securities or some combination of these. Those securities are
professionally managed on behalf of the shareholders, and each
investor holds a pro rata share of the portfolio -- entitled to any
profits when the securities are sold, but subject to any losses in value as
well.
A mutual fund, by its very nature, is diversified -- its assets are invested in
many different securities. Beyond that, there are many different types of
mutual funds with different objectives and levels of growth potential,
furthering your chances to diversify.

The Mutual Fund Industry

The Government of India can trace the genesis of the mutual fund industry
in India back to 1964 with the setting up of the Unit Trust of India (UTI).
Since then UTI has grown to be a dominant player in the industry. UTI is
governed by a special legislation, the Unit Trust of India Act, 1963.
The industry was opened up for wider participation in 1987 when public
sector banks and insurance companies were permitted to set up mutual
funds. Since then, 6 public sector banks have set up mutual funds. Also the
two Insurance companies LIC and GIC have established mutual funds.
Securities Exchange Board of India (SEBI) formulated the Mutual Fund
(Regulation) 1993, which for the first time established a comprehensive
regulatory framework for the mutual fund industry. Since then several
mutual funds have been set up by the private and joint sectors.

Growth of Mutual Funds

The Indian Mutual fund industry has passed through three phases. The first
phase was between 1964 and 1987 when Unit Trust of India was the only
53
player. By the end of 1988, UTI had total asset of Rs 6,700crores. The
second phase was between 1987 and 1993 during which period 8 funds
were established (6 by banks and one each by LIC and GIC). This resulted
in the total assets under management to grow to Rs 61,028crores at the end
of 1994 and the numbers of schemes were 167.
The third phase began with the entry of private and foreign sectors in the
Mutual fund industry in 1993. Several private sectors Mutual Funds were
launched in 1993 and 1994. The share of the private players has risen
rapidly since then. Currently there are 34 Mutual Fund organizations in
India. Kothari Pioneer Mutual fund was the first fund to be established by
the private sector in association with a foreign fund.

This signaled a growth phase in the industry and at the end of financial
year 2000, 32 funds were functioning with Rs. 1,13,005 crores as total
assets under management. As on August end 2000, there were 33 funds
with 391 schemes and assets under management with Rs. 1,02,849 crores.
The Securities and Exchange Board of India (SEBI) came out with
comprehensive regulation in 1993, which defined the structure of Mutual
Fund and Asset Management Companies for the first time.

ICICIdirect.com brings you the same convenience while investing in Mutual

funds also - Hassle free and Paperless Investing. With the inclusion of
Standard Chartered MF, you can now invest on-line in 10 mutual Funds
through ICICIdirect.com. Prudential ICICI MF, JM MF, Alliance MF,
Franklin Templeton MF, Sundaram MF, Birla Sun Life MF, HDFC MF,
Principal MF and IL & FS MF are the Mutual Funds available for
investment. You can invest in mutual funds without the hassles of filling
application forms or any other paperwork. You need no signatures or proof
of identity for investing.
Once you place a request for investing in a particular fund, there are no
manual processes involved. Your bank funds are automatically debited or
credited while simultaneously crediting or debiting your unit holdings. You
also get control over your investments with online order confirmations and

54
order status tracking. Get to know the performance of your investments
through online updation of MF portfolio with current NAV.

ICICIdirect.com offers you various options while investing in

Mutual Funds:

Purchase: You may invest/purchase Prudential ICICI MF, JM MF,

Alliance MF, Franklin Templeton MF, Sundaram MF, Birla Sun
Life MF, HDFC MF, Principal MF, IL & FS MF and Standard
Chartered MF without the hassles of filling application forms.

Redemption: In addition to giving hassle-free paperless redemption,

ICICIdirect.com offers faster liquidity. You can redeem the mutual
fund units through ICICIdirect.com. The money will be credited to
your bank account automatically 3 days after the order placement
date.

Switch: To suit your changing needs you may wish to shift monies
between different schemes. You can switch your monies online from
one scheme to another in the same fund family without any hassles.

Systematic Investment plans (SIP): SIP allows you to invest a

certain sum of money over a period of time periodically. Just fill in
the investment amount, the period of investment and the frequency
of investing and submit. ICICIdirect.com will do the rest for you
automatically investing periodically for you.
Systematic withdrawal plan: This allows you to withdraw a
certain sum of money over a period of time periodically.

55
Transfer-in: You can convert your existing Mutual funds into
electronic mode through a transfer-in request.

ADVANTAGES OF MUTUAL FUND

OR
WHY INVEST IN MUTUAL FUND

Professional investment management

One of the primary benefits of mutual funds is that an investor has access
to professional management. A good investment manager is certainly
worth the fees you will pay. Good mutual fund managers with an excellent
research team can do a better job of monitoring the companies they have
chosen to invest in than you can, unless you have time to spend on
researching the companies you select for your portfolio. That is because
Mutual funds hire full-time, high-level investment professionals. Funds
can afford to do so as they manage large pools of money. The managers
have real-time access to crucial market information and are able to execute
trades on the largest and most cost-effective scale. When you buy a mutual
fund, the primary asset you are buying is the manager, who will be
controlling which assets are chosen to meet the funds' stated investment
objectives.

Diversification
A crucial element in investing is asset allocation. It plays a very big part in
the success of any portfolio. However, small investors do not have enough
money to properly allocate their assets. By pooling your funds with others,
you can quickly benefit from greater diversification. Mutual funds invest in
a broad range of securities. This limits investment risk by reducing the
56
effect of a possible decline in the value of any one security. Mutual fund
unit-holders can benefit from diversification techniques usually available
only to investors wealthy enough to buy significant positions in a wide
variety of securities.

Convenience and Flexibility

Investing in mutual funds has it’s own convenience. While you own just
one security rather than many, you still enjoy the benefits of a diversified
portfolio and a wide range of services. Fund managers decide what
securities to trade collect the interest payments and see that your dividends
on portfolio securities are received and your rights exercised. It also uses
the services of a high quality custodian and registrar. Another big
advantage is that you can move your funds easily from one fund to another
within a mutual fund family. This allows you to easily rebalance your
portfolio to respond to significant fund management or economic changes.

Liquidity
In open-ended schemes, you can get your money back promptly at net
asset value related prices from the mutual fund itself.

Transparency
Regulations for mutual funds have made the industry very transparent. You
can track the investments that have been made on you behalf and the
specific investments made by the mutual fund scheme to see where your
money is going. In addition to this, you get regular information on the
value of your investment.

Variety

57
There is no shortage of variety when investing in mutual funds. You can
find a mutual fund that matches just about any investing strategy you
select. There are funds that focus on blue-chip stocks, technology stocks,
bonds or a mix of stocks and bonds. The greatest challenge can be sorting
through the variety and picking the best for you.

TAX BENEFITS
There are tax benefits to be delivered from investing in Mutual Fund.
Income distribution of equity-oriented funds are exempt from taxed
consessional rates of tax are applicable on capital gains from unit of
Mutual Fund

RETURN POTENTIAL

Over a medium to long-term, Mutual Fund have potential to provide a

Higher return as they invest in a diversified basket of selected securities.

WELL REGULATED

All Mutual Fund are registered with SEBI (Stock Exchange Board Of
India)
And they function with in
The provision of strict regulation designed to protect the interest of
investors.

LOW INVESTMENT

It is possible to invest in small amount as and when the investors have

surplus funds to invest.

LIMITATION OF MUTUAL FUND

1. NATURE OF THE SCHEME AND MARKET RISK:

58
Investing money in share is more risky then in debentures. Thus a scheme
investing mainly in shares and partly in e.g. equity schemes is more risky
than a scheme, which invests partly in shares and partly in debentures
(Balanced Scheme). Balanced Scheme is more risky than a scheme which
invests mainly in debentures i.e. income scheme.

Equity scheme provides higher returns in the form of capital appreciation

and carries more risk as risk and return go together. Unsystematic risk can
be reduced through a well-diversified portfolio but systematic risk remains
there. Where as pure income scheme provides lower returns and risk. Thus,
investor has to choose which scheme is better and meets his objective.

2. INVESTOR:

In case of Mutual Fund, the investor has no control over the securities
bought and sold. An individual can revise his portfolio immediately
according to his expectation but in case of Mutual Fund he has no
control.

3. HIGH CHARGES:

Mutual Fund charges regular expenses like custodian fee, registrar fee,
and the asset management fee. These expenses have a ceiling limit of 3
percent of the net assets in the respective scheme per year.

Types of Mutual Funds

Getting a handle on what's under the hood helps you become a better
investor and put together a more successful portfolio. To do this one must
know the different types of funds that cater to investor needs, whatever the
age, financial position, risk tolerance and return expectations. The mutual
fund schemes can be classified according to both their investment
objective (like income, growth, tax saving) as well as the number of units
(if these are unlimited then the fund is an open-ended one while if there are
limited units then the fund is close-ended).

59
 A. BY STRUCTURE

OPEN-ENDED SCHEMES

CLOSE-ENDED SCHEMES

 INTERVAL SCHEMES

Open-ended schemes
Open-ended schemes do not have a fixed maturity period. Investors can
buy or sell units at NAV-related prices from and to the mutual fund on any
business day. These schemes have unlimited capitalization, open-ended
schemes do not have a fixed maturity, there is no cap on the amount you
can buy from the fund and the unit capital can keep growing. These funds
are not generally listed on any exchange.
Open-ended schemes are preferred for their liquidity. Such funds can issue
and redeem units any time during the life of a scheme. Hence, unit capital
of open-ended funds can fluctuate on a daily basis. The advantages of
open-ended funds over close-ended are as follows:
Any time exit option, the issuing company directly takes the responsibility
of providing an entry and an exit. This provides ready liquidity to the
investors and avoids reliance on transfer deeds, signature verifications and
bad deliveries. Any time entry option, an open-ended fund allows one to
enter the fund at any time and even to invest at regular intervals.

Close-ended schemes
Close-ended schemes have fixed maturity periods. Investors can buy into
these funds during the period when these funds are open in the initial issue.
After that such schemes cannot issue new units except in case of bonus or
rights issue. However, after the initial issue, you can buy or sell units of the
scheme on the stock exchanges where they are listed. The market price of

60
 the units could vary from the NAV of the scheme due to demand and
supply factors, investors’ expectations and other market factors
Schemes that have stipulated maturity period (ranging from 2 to 5 years)
are called close-ended schemes. You can directly invest in the scheme at
the time of initial issue and thereafter you can buy sell the units of the
scheme on he stock externs in which they are listed. The market price at
the stock exchange could vary foam the scheme’s NAV (Net Asset Value)
on account of demand and supply situation, unit holder’s expectation and
other market factors.

Some close-ended schemes give you additional option of selling your units
directly to the Mutual Fund through periodic repurchase Aetna related
prices. SEBI regulations ensure that at least one of the exit routes is
provided to the investors.

INTERVAL SCHEMES

These combine the features of open-ended and close-ended schemes. They

may be traded on the stock exchange or may be open for sale or
redemption during predetermined intervals at NAV related prices.

B. BY INVESTMENT OBJECTIVE

GROWTH SCHEME

FIXED INCOME SCHEMES

 BALANCED SCHEMES

 MONEY MARKET SCHEMES

GROWTH SCHEME

Growth funds primarily look for growth of capital with secondary

emphasis on dividend. Such funds invest in shares with a potential for
61
growth and capital appreciation. They invest in well-established companies
where the company itself and the industry in which it operates are thought
to have good long-term growth potential, and hence growth funds provide
low current income. Growth funds generally incur higher risks than income
funds in an effort to secure more pronounced growth.
Some growth funds concentrate on one or more industry sectors and also
invest in a broad range of industries. Growth funds are suitable for
investors who can afford to assume the risk of potential loss in value of
their investment in the hope of achieving substantial and rapid gains. They
are not suitable for investors who must conserve their principal or who
must maximize current income.

Aim to provide capital appreciation over medium to long term. These

scheme normally invest majority of there funds in equities and are willing
to bear short-term decline in value for possible future appreciation. These
schemes are not for investors seeking regular income or needing their
money back in short term.

Idea for:
 Investor in their prime earning years.
 Investors seeking growth over long-term.

FIXED INCOME SCHEME

Fixed income funds primarily look to provide current income consistent

with the preservation of capital. These funds invest in corporate bonds or
government-backed mortgage securities that have a fixed rate of return.
Within the fixed-income category, funds vary greatly in their stability of
principal and in their dividend yields. High-yield funds, which seek to
maximize yield by investing in lower-rated bonds of longer maturities,
entail less stability of principal than fixed-income funds that invest in
higher-rated but lower-yielding securities.
Some fixed-income funds seek to minimize risk by investing exclusively in
securities whose timely payment of interest and principal is backed by the
full faith and credit of the Indian Government. Fixed-income funds are

62
suitable for investors who want to maximize current income and who can
assume a degree of capital risk in order to do so.

Idea for:
 Retired people and others with a need for capital stability and
regular income.
 Investors who need some income to supplement their earning.

BALANCED SCHEMES

Aim to provide both growth and income by periodically distributing a part

of income and capital gain they earn. They invest in both shares and fixed
income securities in the proportion indicated in their offer documents. In a
rising stock market, the NAV of these schemes may not normally keep
pace, or fall equally when he market falls.

Idea for:
 Investor looking for a combination of income and moderate
growth.

MONEY MARKET SCHEME

For the cautious investor, these funds provide a very high stability of
principal while seeking a moderate to high current income. They invest in
highly liquid, virtually risk-free, short-term debt securities of agencies of
the Indian Government, banks and corporations and Treasury Bills.
Because of their short-term investments, money market mutual funds are
able to keep a virtually constant unit price; only the yield fluctuates.
Therefore, they are an attractive alternative to bank accounts. With yields
that are generally competitive with - and usually higher than -- yields on
bank savings account, they offer several advantages. Money can be
withdrawn any time without penalty. Although not insured, money market
funds invest only in highly liquid, short-term, top-rated money market
63
 instruments. Money market funds are suitable for investors who want high
stability of principal and current income with immediate liquidity.
Aim to provide easy liquidity, preservation of capital and moderate
income. These schemes generally invest in safer, short-term instruments as
treasury bills, certificates of deposits, commercial paper and inter-bank call
money.
Return on these schemes may fluctuate, depending upon the interest rates
prevailing

C. OTHER SCHEMES

TAX SAVING SCHEME

Specialty/Sector Funds

 GILT FUND

 LIQUID (CASH) FUND

TAX SAVING SCHEMES

These schemes offer tax rebates to the investors under tax laws as
prescribed from time to time. This is made possible because the
government offer tax incentives for investment in specified avenues. For
example: Pension Scheme

Recent amendments to the Income Tax Act provide further opportunities to

the investors to save capital gains by investing in Mutual Funds.

Idea for:
 Investors seeking tax rebates.

64
 Specialty/Sector Funds
These funds invest in securities of a specific industry or sector of the
economy such as health care, technology, leisure, utilities or precious
metals. The funds enable investors to diversify holdings among many
companies within an industry, a more conservative approach than investing
directly in one particular company.
Sector funds offer the opportunity for sharp capital gains in cases where
the fund's industry is "in favor" but also entail the risk of capital losses
when the industry is out of favor. While sector funds restrict holdings to a
particular industry, other specialty funds such as index funds give investors
a broadly diversified portfolio and attempt to mirror the performance of
various market averages.
Index funds generally buy shares in all the companies composing the BSE
Sensex or NSE Nifty or other broad stock market indices. They are not
suitable for investors who must conserve their principal or maximize
current income.

This category includes index schemes that attempt to replicate the

performance of a particular index such as BSE (Bombay Stock Exchange)

Sensex or the NSE (National Stock Exchange) 50, or industry specific

schemes (which invest in specific industries) or sectoral scheme (which
invest exclusively in segments such as “A” Group shares.)

Keep in mind that any one scheme may not meet all your requirements for
all time. You need to place your money judiciously in different schemes to
be able to get the combination of growth, income and stability that is right
for you.

GILT SCHEMES

The funds are invested only in Central/Government securities.

No principal risk on the product.
 Best suited for medium-long term investors who are averse to risk.
65
 LIQUID (CASH) FUNDS

These funds invest in very short-term instruments.

Ideal for corporate, institutional investors, and business houses.
 Period of investment may as low as one day.

The structure and organization of Mutual Funds as per SEBI

guidelines is as follows: -

(a) Sponsor

Sponsor is the company which sets up the Mutual Fund e.g. Kothari
Pioneer Mutual Fund have sponsor Pioneer Investment Management, Inc.,
USA and the Investment Trust Of India Ltd. (ITI). The Investment Trust
Of India (Pvt.) Ltd. was established in 1946 and is one of the India well
known Financial Services Companies. To promote the Mutual Fund, the
sponsor has to meet the criteria laid down by SEBI. The criteria broadly
deal with sufficient experience, net worth, and past record in terms of fair
dealing & integrity. Those who qualify these criteria are permitted by
SEBI to setup Mutual Funds.

(b) Asset Management Company (AMC)

AMC manages the funds of various Schemes: AMC employs a large

number of professional for investment and research. It plays a key role in
the running of a Mutual Fund and it operates under the supervision and
guidance of the trustee. For example, Kothari Pioneer AMC Ltd. has been
appointed as the investment manages Kothari Pioneer Mutual Fund and
operates its various schemes under the provisions of the investment
Management Agreement entered into with Kothari Pioneer Mutual Fund
on July 29,1993. The AMC can be a private or public limited company
either listed or not. The AMC may be a new or existing, should have a
66
 minimum 40 percent stake paid up in the paid-up equity of the AMC to be
set up the sponsor. The minimum net worth of the AMC is stipulated at Rs.
5 crore. The Memorandum and Articles Of Association of the AMC
Company should have the approval of SEBI. AMC is authorised to do
business, if the following condition of SEBI are fulfilled.

(1) AMC, which are already existing, should have a sound track record,
general reputation and fairness in all other business transactions.

(2) The directors of AMC should be persons of high repute and standing
having at least 10 years of professional experience in the relevant
fields such as portfolio management, investment analysis, and in
financial administrator.

(3) At least 50 percent of the Board of AMC should be independent

director not connected with sponsoring organization.

(4) The AMC should at all times have a minimum net worth of Rs. 5
crore.

Except in the case of Bank sponsored AMC where the Prior concurrence of
RBI is required. SEBI may withdraw the authorization granted to any
AMC, if it is not serving in the intrest of incestors. The board of trustees,
of a Mutual Fund, will appoint another AMC or liquidate the Mutual Fund
as may be necessary with in there months of withdrawal.

(c) Trustee

The trustees are an important link in the working of a Mutual Fund.

Trustees are people with long experience and who have earned a name for
themselves for integrity and excellence in their fields. It is the
responsibility of the trustees to see that AMC always act in the best interest
in the investors. Thus they carry the crucial responsibility of safe guarding
the interest pf investors. They do this by constant monitoring of the
67
 operations of the scheme. AMC supplies all information demanded by
trustees on a regular basis i.e. quarterly.

Establishing a separate trust company should carry out trusteeship

functions. At least 50 percent of the Board of Trustee shall be independent
and should not have any affiliation with the sponsoring institution or any
of its subsidiaries. The trustees have to submit a six monthly report to the
SEBI and an annual report to the investors in the fund.

(d) Custodian

The SEBI while granting the authorization for setting up of a Mutual Fund,
would also approve the custodian as part of the package. The custodian
should be different from the AMC. The sponsor and trustee companies
cannot act as custodian. If the sponsor has a custodian division, it can act
for other Mutual Fund not set up by the sponsor. The approval of any
agency as custodian would depend upon its track record, experience,
qualify of service, computerisation and other infrastructure facilities. The
approval of Mutual Fund involves the approval of sponsor, AMC, trustee
and custodian all together, who are responsible for the management of
fund. Each scheme floated by Mutual Fund should have prior registration
with SEBI. The AMC should prepare a proportion/letter of offer foe each
to decide the propsal within 30 days of its receipt, failing within SEBI
before inviting public. SEBI has to decide the proposal within 30 days of
its receipt, failing which SEBI clearance is presumed. Mutual Funds are
allowed to start and operate both open-ended and close-ended schemes.

IMPLICATION OF LOAD FOR THE MUTUAL FUND INVESTOR

Every investment incurs some cost, which is generally borne by the

investor. This might be usually in the form of transaction cost incurred in
the buying/selling of investments. However the transaction cost varies
among different instrument, depending on the nature of the investment.

68
However investors investing in the Mutual Fund incurs a cost popularly
known as “LOAD” This load is a charge by the fund to recover the
expenses incurred by the fund on brokerage, marketing or selling the
scheme, investor communication expenses etc.

TYPES OF LOAD: -

Loads are the different on the basis of Investment. These are

ENTRY LOAD: -

The load charged at the time of Investment is known as entry load. It

is meant to cover the cost that the AMC spends in the process of
subscribers – commission payable to brokers, advertisement, registrar, etc.
the load is recovered by way of charging sale rice higher than the
prevailing NAV. For example, if he loads is 5%, and the NAV is Rs10 per
unit, the selling price if the fresh units can be calculated as follows:
Selling price per unit = 10/(1-.05) = 10/ .95 = 10.526

EXIT LOAD: -

Some AMC do not charge Entry load but they charge an exit loads,
they deduct a load before paying out the redemption proceeds.
Psychologically, investors are much more willing to pay exit loads as
compared to entry loads, because they are paying after they are paying the
service.

NET ASSET VALUE

The most important financial indicator in case of Mutual Funds is Net

Asset Value (NAV).

The Net Asset Value of the scheme (s) will be calculated on a daily basis
as shown below:

69
 Market value of the scheme’s Investment+
NAV per unit = Other current Assets + Deposits – All liabilities except
reserve & profits & loss Account

______________________________________________

No. Of unit Outstanding

The calculation and the periodicity of the publication of the NAV,

repurchase and sale prices would be the SEBI regulation or any
modifications there too as may be issued by SEBI from time to time.

Net Asset Value shall be calculated as of the close of every business day.
(See the annexure – for NAV’s)

HOW TO INVEST IN MUTUAL FUNDS.

1) Identify your investment needs.

2) Choose the right Mutual Fund

3) Select the ideal mix of the schemes.

4) Invest regularly.

5) Keep your taxes in mind.

6) Start early.

Investing in Mutual funds:

ICICIdirect.com brings you the same convenience while
investing in Mutual funds also - Hassle free and Paperless
Investing.

70
You can invest in mutual funds without the hassles of filling
application forms or any other paperwork. You need no
signatures or proof of identity for investing.
Once you place a request for investing in a particular fund,
there are no manual processes involved. Your bank funds are
automatically debited or credited while simultaneously
crediting or debiting your unit holdings.
You also get control over your investments with online order
confirmations and order status tracking. Get to know the
performance of your investments through online updation of
MF portfolio with current NAV.

IPOs and Bonds Online:

You could also invest in Initial Public Offers (IPOs) and Bonds
online without going through the hassles of filling ANY
application form/ paperwork.
Get in-depth analyses of new IPOs issues (Initial Public
Offerings) which are about to hit the market and analysis on
these. IPO calendar, recent IPO listings, prospectus/offer
documents, and IPO analysis are few of the features, which
help you, keep on top of the IPO markets.

Features Of ICICI DIRECT.Com

There are a host of features on ICICIdirect.com that shall help

you make informed investment decisions.
We provide you with the indices of major world markets, nifty
futures and ADR prices of Indian scrips. Get daily share
prices of all scrips, monthly and yearly high/lows etc through
Market Watch.

71
Get breaking news from CNBC and Reuters. Catch a
glimpse of News Headlines through our scrolling Direct News
Headlines.
Get a snapshot of the latest developments in the markets
through the day using Market Commentary. You can get
weekly snapshots also. Use Pick of the week which focuses
on fundamental stocks with sound prospects.
Catch interviews, reactions and comments from industry
leaders with CEO Call. Track the movement of leading scrips
within a sector across 12 sectors using Market@Desktop.
Equip yourself with our barometers. Market Barometer gives
you in-depth information of the weightages of shares on Nifty
and Sensex. Get a glimpse of the performance of various
industry sectors through Industry Barometer.
Direct Technical Charts offer interactive charting with
advanced indicators. Get a bird's eye view of over 5000
companies at a single click using Company Snapshot.
Glance through analyst recommendations using Multex
Global Estimates.
In case, you are not too comfortable with share trading, try our
Learning Centre, which is a tutorial on investments and My
Research, that helps you to research a stock better.
Personal Finance:
Use our Personal Finance section and get hold of tools that
can help you plan your investments, retirement, tax etc.
Analyse your risk profile through the Risk Analyzer and get a
suitable investment portfolio plan using Asset Allocator.
Customer Service Features:

With 'ICICIdirect Customer Tools & Updates' you can

trouble shoot all your problems online.

72
Address your trading queries on-line through "Easy Mail".
You can view and change your profile or password on-line
through General Profile option.
Get details of ICICI Centers, our sales and service offices,
across India through branch locator.
View your Account Statement and Bill Summary of your
transactions online using bills & accounts.

View your Digital Contract Notes instantly. View various

charges through the Fee Schedule option
Give your feedback or viewpoint through the Viewpoint
online.
Enroll yourself for various ICICIdirect Workshops

Advantages Of ICICI direct.com:-

What so unique about ICICIdirect.com?
A Unique 3-in-1 account that gives you:
Convenience:-
The 3-in-1 account integrates your banking, broking and demat
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Control:-
You can be assured that you have in fact placed an order at the
price you always wanted to, but may not have been able to do so
till now. Thereby giving you control over your own trades.
Independence:-

73
 Instead of transferring monies to a broker's pool or towards
deposits, you can manage your own demat and bank accounts
when you trade through ICICIdirect.com.
Trust:-
ICICIdirect.com comes to you from ICICI, the organisation
trusted by millions of Indians

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