A

Project Report
On
“CUSTOMER BEHAVIOUR IN STOCK MARKET”
(A case study of ICICI Securities, Jaipur)

Submitted to the University of Rajasthan, Jaipur

For the partial fulfillment of Paper- VI
For the degree of
Bachelor of Business Administration

Supervised By: Submitted By:

Dr. (Miss) Anjora Belcha Prachi Golya
Assistant Professor BBA Part III
Business Admin. Deptt.
(University of Rajasthan)

UNIVERSITY MAHARANI COLLEGE, JAIPUR

2011-12
 Acknowledgement
Devotion to your work is not a sacrifice but a justification to your existence in
this world.”

At once end completion of this project report has served me with much knowledge
and great experience and on the other end it has filled me with a deep sense of
gratitude towards persons who made this project possible.
It gives me immense pleasure to express my deep sense of gratitude to Prof. Anjali
Krishnamurthy, Principal, University Maharani College, for her valuable
guidance, motivation and providing such an opportunity.
A deep sense of gratitude is owed to Dr. (Miss) Anjora Belcha, who extended
their supervision and assistance through the project duration. Needless to say their
knowledge and experience has served as a continuous source of encouragement
and motivation. Without their invaluable support and guidance the project would
not have been possible.
I am extremely thankful to Dr. R.K Agarwal, BBA coordinator, University
Maharani College, for providing such vast opportunities throughout course which
leads to my all round development and his valuable guidance.
I express my sincere thanks to University Maharani College, Jaipur for
giving me the opportunities to work with the company during the summer training
program.
My last thanks to my parents and friends for their constant support and
strongest motivation, which has been a source of inspiration at every step of my
life.

Without the cooperation of the above persons it was not possible to complete the
project successfully.

Prachi Golya
BBA Part III
 PREFACE

Projects are very important for the beginners to gain a practical

knowledge about organizations and the market. Theory till not used in
practical field is of no use. So our institute has fixed a period for summer
training where we can enter into the market through some organization
in order to gain some real knowledge.

Keeping this in mind I carried out my project in “ICICI DIRECT”

which is one of the largest and reputed companies in India.

The project was a study of “Customer Behaviour In Stock Market

with Special Reference to ICICI DIRECT”.
 CERTIFICATE

This is to certify that Miss Prachi Golya, the student of Maharani

College , Jaipur has prepared her project report entitled “CUSTOMER
BEHAVIOUR IN STOCK MARKET” with reference to “ICICI
DIRECT” for the degree of “Bachelor of Business Administration
(BBA)”.

She has worked under my guidance to the best of my knowledge and

belief. This is her original work which has not been submitted to any
other institute/organization for any degree/diploma program.

Date: Project Supervisor

 DECLARATION

I hereby declare that project report entitled “CUSTOMER

BEHAVIOUR IN STOCK MARKET” , is a bonafied record of work

done by me during the project work and that it has not previously

formed the basis for the award to me for any degree/diploma, associate

ship, fellowship or other similar title of any other institute/society.

Date: 03-03-2012 Prachi Golya

BBA Part III
 INDEX
S.No. Page No.

Chapter-1 INTRODUCTION OF 01-13

ICICI DIRECT

 Introduction

 Features of ICICI DIRECT

 Business Objectives

 Types of Business

 Awards and Recognitions

Chapter-2 BRIEF ABOUT STOCK MARKETS 14-34

 Introduction to Stock Markets

 Evolution of Stock Markets

 Concept of Share Trading

Chapter-3 RESEARCH DESIGN 35-38

 Research Methodology
  Type of Data

 Sample Size

 Objective of Study

 Scope of Study

Chapter-4 CUSTOMER BEHAVIOUR IN 39-49

STOCK MARKET

 Meaning of Customer Behaviour

 Factors influencing Customer Behaviour

 Behaviour of various Categories of

Customers in Stock Markets

Chapter-5 Customer Behaviour with 50-53

respect to ICICI DIRECT

Chapter-6 SWOT ANALYSIS of 54-63

ICICI DIRECT

Chapter-7 Conclusions & Recommendations 64-69

Appendix Bibliography & Webliography 70-71
 CHAPTER-1

INTRODUCTION

OF

ICICI DIRECT
INTRODUCTION TO ICICI SECURITIES
ICICI Securities ltd. Is an integrated securities firm offering a wide
range of service including investment, banking, institutional 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 networth individuals , and retail investors.

Headquartered in Mumbai, ICICI Securities operates out of 66 cities and

towns in India and global offices in Singapore and Newyork.

ICICI Securities Inc., the stepdown wholly owned US subsidiary of the

company is a member of the Financial Industry Regulatory Authority
(FINRA)/ Securities Investors Protection Corp. (SIPC). ICICI Securities
acivities includes dealing in securities and Corporate Advisory Services
in US.

ICICI Securities is also registered with the Monetary Authority of

Singapore (MAS) and operates a branch office in Singapore.

ICICI announces the launch of web based trading services through its
group company on January 11, 2000: ICICI Web Trade Ltd. ICICI Direct
commenced services on 17 Apr. 2000ICICI (NYSE Symbols: IC and
IC.d) through its group company namely ICICI Web Trade Limited
would be launching a new Internet based trading service at
icicidirect.com. The business model that would be that of a combination
of thin branches (ICICI Centres which function like cyber points) and
the web space. This model has been successfully adopted by leaders in
the international market like Charles Schwab.

Not only is ICICI Group the first to offer this service, but icicidirect.com
offers the first end to end integrated web based trading service - e-Invest
Account that allows the customer seamless electronic trading on the
exchanges. Through this unique three-in-one offering, every customer
opening an e-Invest account will get a free demat account and a free
online banking account.

This integration will enable the customer to tie in his trading bank
account and demat account to his e-Invest account electronically. When
the customer punches in a trade on his computer, the icicidirect.com
server will check the balance in his bank and demat accounts and will
execute the trade on the exchange online. All of this will involve no
paperwork. ICICI direct.com will keep track of all transactions,
settlement dates and stock exchange rules, thus making trading a
completely hassle free experience for the customer.

Under this end to end integration, the customer will be offered a free
online banking account and a free demat account with every e-Invest
account opened. Therefore the customer need not be an existing account
holder with ICICI Bank or ICICI Demat Services.
e-Invest allows the customer to not only buy shares to the extent of
money in his bank account but also allows him toICICI
buyLombard
and sell shares on
margin, thus leveraging his money. Hence he# 1can
Private
buy Sector
muchGeneral
more Insurance
than Company in
India
covered by the actual balance in his bank account. There is a strong risk
mitigation module incorporated in the system to protect the customer
from over exposure.

In line with ICICI Group's retail focus, this product is targeted at an

individual customer who is interested in the stock markets. Any Indian
(resident or non-resident) who has access to the Internet, located
anywhere in the world can open an e-Invest account with us.

For those customers who do not have an independent access to the net,
ICICI Centres would provide net access, in the first phase in 12 centres
and eventually throughout the country. The ideal mix of technology and
Internet as a channel allows us to bring these features to everybody at
competitive prices.

research, IPO centre, and view facilities for positions as well as

transaction histories.

ICICI Direct offers the highest level of security, ie, SSL with 128-bit
encryption. The success of the launch has surpassed our initial
expectations. On-line trading on ICICI Direct has appealed to all income
levels. There are customers who also go to cyber cafés to trade through
ICICI Direct. Every day we are adding more and more customers.
 Features of ICICI Direct

 Seamless Trading
You can trade in shares, without going through the hassle of tracking
settlement cycles, writing cheques and transfer instructions. Absolutely
Hassle Free..!!!

 Security
Instead of transferring monies to a brokers’ pool or towards deposits,
you can manage your own demat and bank A/Cs, when you trade
through ICICI Direct. It provides you the flexibility to pay only when
you trade.

 Wide range of Products

Share trading in both NSE & BSE, innovative offerings like- Margin,
Margin Plus, BTST, SPOT, Derivatives Trading, overseas trading,
mutual funds, IPOs & online Life Insurance.

 Control
You can be rest assured, that your order will be precisely for the amount
you wnted it to be, without any deviation, giving you full control on
your money and your trades.
  Award winning Research
We understand the need for the right research to make the right
investment decision and has focussed heavily in this area. Our team with
its consistent delivery has been voted as the ‘Most preferred brand of
Financial Advisory Services’ at the CNBC Awaaz Consumer Awards.

Business Objectives

 To grow in multiples.
 To fulfill every significant need gap in the market.
 To penetrate deep into market geography
 To add new customers to the ICICI group.

Thrust Areas

 Scale up to 600 centre’s from more than 300

 Integrate with technology
 Build a differentiated brand experience in the market place through
the ICICI direct centre
 Grow the brand exponentially
CHART-1 This chart depicts Sources of Business of ICICI DIRECT

 My study is concentrated on Stock Markets with special

reference to ICICI DIRECT

Products of ICICI DIRECT

 EQUITY
Equities have the potential to increase in value over time and can
provide your portfolio with the growth necessary to reach your long-
term investment goals.

Equities are known to have outperformed all other forms of investment

in the long-term.

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

1. In cash we simply buy or sell shares of various companies in NSE

or BSE exchanges.

2. The timings of doing trade in this segment are 9:55 a.m to 3:30
p.m. The timings can change due to some unavoidable
circumstances which will be intimated by the exchange to us.

3. There are 994 companies which can be traded under this segment
till date.

Margin Trading
You can also do an intra-settlement trading up to 3 to 4 times your
available funds, wherein you take long buy/ short sell positions in
stocks with the intention of squaring off the position within the
same day settlement cycle.

Margin PLUS Trading

Through Margin PLUS you can do an intra-settlement trading up

to 25 times your available funds, wherein you take long buy/ short
sell positions in stocks with the intention of squaring off the
position within the same day settlement cycle. Margin PLUS will
give a much higher leverage in your account against your limits.

Spot Trading

This facility can be used only for selling your demat stocks which
are already existing in your demat account. When you are looking
at an immediate liquidity option, 'Cash on Spot' may work the best
for you, On selling shares through "cash on spot", money is
credited to your bank a/c the same evening & not on the exchange
payout date. This money can then be withdrawn from any of the
ICICI Bank ATMs.

BTST
Buy Today Sell Tomorrow (BTST) is a facility that allows you to
sell shares even on 1st and 2nd day after the buy order date, without
you having to wait for the receipt of shares into your demat
account.

Call n Trade

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

TRADE IN DERIVATIVES
FUTURES

Through ICICIdirect, 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.

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

OPTIONS

An option is a contract, which gives the buyer the right to buy or

sell shares at a specific price, on or before a specific date. For this,
the buyer has to pay to the seller some money, which is called
premium. There is no obligation on the buyer to complete the
transaction if the price is not favorable to him.

To take the buy/sell position on index/stock options, you have to

place certain % of order value as margin. With options trading, you
can leverage on your trading limit by taking buy/sell positions
much more than what you could have taken in cash segment.

The Buyer of a Call Option has the Right but not the Obligation to
Purchase the Underlying Asset at the specified strike price by
paying a premium whereas the Seller of the Call has the obligation
of selling the Underlying Asset at the specified Strike price.
The Buyer of a Put Option has the Right but not the Obligation to
Sell the Underlying Asset at the specified strike price by paying a
premium whereas the Seller of the Put has the obligation of buying
the Underlying Asset at the specified Strike price.

By paying lesser amount of premium, you can create positions

under OPTIONS and take advantage of more trading opportunities.

Investing in Mutual Funds

With the inclusion of Fidelity MF, you can now invest on-line in 14
mutual Fund through ICICI DIRECT:-

Prudential ICICI MF JM MF, Alliance MF

TATA MF Sundaram MF
Birla Sunlife MF HDFC MF
Principal MF UTI MF
Reliance MF Kotak MF
ING MF CHOLA MF
Franklin Templeton, DSP Merrill
MF Lynch, MF

Awards and Recognitions

 ICICI Direct won the Outlook Money ‘Best e-brokerage Award’
seventh time in a row. Previously, the firm won the award in 2004,
2005, 2007, 2008, 2009 & 2010.

 Awarded Asia’s first “Web Seal” by KPMG- a seal of assurance

awarded to companies in the internet world with control conscious
business operations.

 “ICICI Direct has the largest number of customers”- SEBI

 “ICICI Direct’s transparency, ease of trading, and technology

initiatives have made it the leader in Indian Online Trading
Market”- Capital Market

 “The largest online broker by customers, trades and market share”-

Business India

 CNBC AWAAZ Consumer award for the most Preferred Brand of

Financial Advisory Services

 “TxA1” highest broker rating by CRISIL- ability of ICICI Direct

to service capital market broking transactions is highest.

 ICICI Direct is a unique model of neighbourhood financial

superstores with an avowed purpose of ‘turning money into
wealth’.
 CHAPTER – 2

BRIEF ABOUT

STOCK MARKETS
 Introduction to Stock Markets
The Securities Contracts (Regulation) Act, 1956, has defined Stock
Exchange as an "association, organization or body of individuals,
whether incorporated or not, established for the purpose of assisting,
regulating and controlling business of buying, selling and dealing in
Securities".

Stock exchange as an organized security market provides marketability

and price continuity for shares and helps in a fair evaluation of securities
in terms of their intrinsic worth. Thus it helps orderly flow and
distribution of savings between different types of investments. This
institution performs an important part in the economic life of a country,
acting as a free market for securities where prices are determined by the
forces of supply and demand. Apart from the above basic function it also
assists in mobilizing funds for the Government and the Industry and to
supply a channel for the investment of savings in the performance of its
functions.

The Stock Exchanges in India as elsewhere have a vital role to play in

the development of the country in general and industrial growth of
companies in the private sector in particular and helps the Government
to raise internal resources for the implementation of various
development programmes in the public sector. As a segment of the
capital market it performs an important function in mobilizing and
channelizing resources which remain otherwise scattered. Thus the
Stock Exchanges tap the new resources and stimulate a broad based
investment in the capital structure of industries.

A well developed and healthy stock exchange can be and should be an

important institution in building up a property base along with a socialist
in India with broader distribution of wealth and income. Thus Stock
Exchange is a vital organ in a modern society. Without a stock exchange
a modern democratic economy cannot exist. The system of joint stock
companies financed through the public investment as emerged has put
the vast means of finances almost to entrepreneurs' needs.

Finance from external sources mainly from the investing public can
become possible only when an institute like Stock Exchange provides
opportunities for the conversion of scattered savings into profitable
investments with the promises of a reasonable yield and minimum
element of risk.

Such a mechanism as provided by Stock Exchanges is not merely a

source of capital but also a conduit which channelizes the savings into
investment along with a free movement of capital.

With the probable exception of a totalitarian state no Government will be

able to mobilize resources from the public if the money market in the
form of stock exchange does not exist. The Stock Exchange benefits the
entire community in a variety of way. It enables the producers to raise
capital which directly and indirectly gives gainful employment to
millions of people on the one hand and helps consumers to get the
variety of goods needed by them on the other. It provides opportunities
to savers to store the value either as temporary abode of purchasing
power or as a permanent abode of purchasing power in the form of
financial assets. It also helps the segments of the savers who put their
savings in commercial firms and non-banking financial intermediaries
because these institutions avail themselves of the services of Stock
Exchange to invest the money thus collected.

The Stock Exchange comes close enough to a perfectly competitive

market allowing the forces of demand and supply a reasonable degree of
freedom to operate as compared to other markets specially the
commodity markets. This segment of the factor market can be
considered as a perfect or a nearly perfect market. Apart from providing
a mechanism for transacting business in stock and shares it generates
genuine potential for a new entrepreneur to take up initiative in the
private sector enterprises and allows the expansion of investing
community by offering gainful development of their otherwise sluggish
or shy capital. The Stock Exchange must assume the responsibility of
protecting the rights of investors specially the small investors in the Joint
Stock Companies.
 Evolution of Stock Markets

Indian Stock Markets are one of the oldest in Asia. Its history dates back
to nearly 200 years ago. The earliest records of security dealings in India
are meager and obscure. The East India Company was the dominant
institution in those days and business in its loan securities used to be
transacted towards the close of the eighteenth century.

By 1830's business on corporate stocks and shares in Bank and Cotton

presses took place in Bombay. Though the trading list was broader in
1839, there were only half a dozen brokers recognized by banks and
merchants during 1840 and 1850.

The 1850's witnessed a rapid development of commercial enterprise and

brokerage business attracted many men into the field and by 1860 the
number of brokers increased into 60.

In 1860-61 the American Civil War broke out and cotton supply from
United States of Europe was stopped; thus, the 'Share Mania' in India
begun. The number of brokers increased to about 200 to 250. However,
at the end of the American Civil War, in 1865, a disastrous slump began
(for example, Bank of Bombay Share which had touched Rs 2850 could
only be sold at Rs. 87).
At the end of the American Civil War, the brokers who thrived out of
Civil War in 1874, found a place in a street (now appropriately called as
Dalal Street) where they would conveniently assemble and transact
business. In 1887, they formally established in Bombay, the "Native
Share and Stock Brokers' Association" (which is alternatively known as
"The Stock Exchange "). In 1895, the Stock Exchange acquired a
premise in the same street and it was inaugurated in 1899. Thus, the
Stock Exchange at Bombay was consolidated.
 Concept of Share Trading
Trading in shares is old phenomena its regulation had been started when
securities contract act had been formed in 1956. Transfer of resources
from those with idle resources to others who have a productive need for
them is most efficiently achieved through the securities market. It
provides a channel for reallocation of savings to investments.

Trading Pattern of the Indian Stock Market

Trading in Indian stock exchanges are limited to listed securities of

public limited companies. They are broadly divided into two categories,
namely, specified securities (forward list) and non-specified securities
(cash list). Equity shares of dividend paying, growth-oriented companies
with a paid-up capital of at least Rs.50 million and a market
capitalization of at least Rs.100 million and having more than 20,000
shareholders are, normally, put in the specified group and the balance in
non-specified group

Two types of transactions can be carried out on the Indian stock

exchanges: (a) spot delivery transactions "for delivery and payment
within the time or on the date stipulated when entering into the contract
which shall not be more than 14 days following the date of the contract”
and (b) forward transactions "delivery and payment can be extended by
further period of 14 days each so that the overall period does not exceed
90 days from the date of the contract". The latter is permitted only in the
case of specified shares.

The brokers who carry over the outstanding pay carry over charges
which are usually determined by the rates of interest prevailing.

A member broker in an Indian stock exchange can act as an agent, buy

and sell securities for his clients on a commission basis and also can act
as a trader or dealer as a principal, buy and sell securities on his own
account and risk, in contrast with the practice prevailing on New York
and London Stock Exchanges, where a member can act as a jobber or a
broker only.

The nature of trading on Indian Stock Exchanges are that of age old
conventional style of face-to-face trading with bids and offers being
made by open outcry. However, there is a great amount of effort to
modernize the Indian stock exchanges in the very recent times.
 MARKET DESIGN

1. Primary Market

 Corporate Securities:

The Disclosure and Investor Protection (DIP) guidelines prescribe a

substantial body of requirements for issuers/intermediaries, the broad
intention being to ensure that all concerned observe high standards of
integrity and fair dealing, comply with all the requirements with due
skill, diligence and care, and disclose the truth, whole truth and nothing
but truth. The guidelines aim to secure fuller disclosure of relevant
information about the issuer and the nature of the securities to be issued
so that investors can take informed decisions. For example, issuers are
required to disclose any material ‘risk factors’ and give justification for
pricing in their prospectus. An unlisted company can access the market
up to 5 times its pre-issue net worth only if it has track record of
distributable profits and net worth of Rs. 1 crore in 3 out of last five
years. A listed company can access up to 5 times of its pre-issue net
worth. In case a company does not have track record or wishes to rise
beyond 5 times of its pre-issue net worth, it can access the market only
through book building with minimum offer of 60% to qualified
institutional buyers.
Infrastructure companies are exempt from the requirement of eligibility
norms if their project has been appraised by a public financial
institution and not less than 5% of the project cost is financed by any of
the institutions, jointly or severally, by way of loan and/or subscription
to equity. The debt instruments of maturities more than 18 months
require credit rating. If the issue size exceeds Rs. 100 crore, two ratings
from different agencies are required. Thus the quality of the issue is
demonstrated by track record/appraisal by approved financial
institutions/credit rating/subscription by QIBs. The lead merchant
banker discharges most of the pre-issue and post-issue obligations. He
satisfies himself about all aspects of offering and adequacy of
disclosures in the offer document. He issues a due diligence certificate
stating that he has examined the prospectus, he finds it in order and that
it brings out all the facts and does not contain anything wrong or
misleading. He also takes care of allotment, refund and dispatch of
certificates. The admission to a depository for dematerialization of
securities is a prerequisite for making a public or rights issue or an offer
for sale. The investors, however, have the option of subscribing to
securities in either physical form or dematerialized form. All new IPOs
are compulsorily traded in dematerialized form. Every public listed
company making IPO of any security for Rs. 10 crore or more is
required to do so only in dematerialized form.
  Government Securities:

The government securities market has witnessed significant

transformation in the 1990s. With giving up of the responsibility of
allocating resources from securities market, government stopped
expropriating seigniorage and started borrowing at near - market rates.
Government securities are now sold at market related coupon rates
through a system of auctions instead of earlier practice of issue of
securities at very low rates just to reduce the cost of borrowing of the
government. Major reforms initiated in the primary market for
government securities include auction system (uniform price and
multiple price method) for primary issuance of T-bills and central
government dated securities, a system of primary dealers and non-
competitive bids to widen investor base and promote retail
participation, issuance of securities across maturities to develop a yield
curve from short to long end and provide benchmarks for rest of the
debt market, innovative instruments like, zero coupon bonds, floating
rate bonds, bonds with embedded derivatives, availability of full range
( 91-day and 382-day) of T-bills, etc.
2. Secondary Market

 Corporate Securities:

The stock exchanges are the exclusive centres for trading of

securities. Though the area of operation/jurisdiction of an exchange is
specified at the time of its recognition, they have been allowed
recently to set up trading terminals anywhere in the country. The three
newly set up exchanges (OTCEI, NSE and ICSE) were permitted
since their inception to have nation wide trading. The trading
platforms of a few exchanges are now accessible from many locations.
Further, with extensive use of information technology, the trading
platforms of a few exchanges are also accessible from anywhere
through the Internet and mobile devices. This made a huge difference
in a geographically vast country like India.

 Exchange Management:

Most of the stock exchanges in the country are organized as “mutuals”

which was considered beneficial in terms of tax benefits and matters
of compliance. The trading members, who provide brokering services,
also own, control and manage the exchanges. This is not an effective
model for self-regulatory organizations as the regulatory and public
interest of the exchange conflicts with private interests. Efforts are on
to demutualise the exchanges whereby ownership, management and
trading membership would be segregated from one another. Two
exchanges viz. OTCEI and NSE are demutualised from inception,
where ownership, management and trading are in the hands of three
different sets of people. This model eliminates conflict of interest and
helps the exchange to pursue market efficiency and investor interest
aggressively.

 Membership:

The trading platform of an exchange is accessible only to brokers. The

broker enters into trades in exchanges either on his own account or on
behalf of clients. No stock broker or sub-broker is allowed to buy, sell
or deal in securities, unless he or she holds a certificate of registration
granted by SEBI. A broker/sub-broker complies with the code of
conduct prescribed by SEBI. Over time, a number of brokers -
proprietor firms and partnership firms – have converted themselves
into corporate. The standards for admission of members stress on
factors, such as corporate structure, capital adequacy, track record,
education, experience, etc. and reflect a conscious endeavor to ensure
quality broking services.

 Listing:

A company seeking listing satisfies the exchange that at least 10% of

the securities, subject to a minimum of 20 lakh securities, were offered
to public for subscription, and the size of the net offer to the public
(i.e. the offer price multiplied by the number of securities offered to
the public, excluding reservations, firm allotment and promoters’
contribution) was not less than Rs. 100 crore, and the issue is made
only through book building method with allocation of 60% of the
issue size to the qualified institutional buyers. In the alternative, it is
required to offer at least 25% of the securities to public. The company
is also required to maintain the minimum level of non-promoter
holding on a continuous basis. In order to provide an opportunity to
investors to invest/trade in the securities of local companies, it is
mandatory for the companies, wishing to list their securities, to list on
the regional stock exchange nearest to their registered office. If they
so wish, they can seek listing on other exchanges as well. Monopoly
of the exchanges within their allocated area, regional aspirations of the
people and mandatory listing on the regional stock exchange resulted
in multiplicity of exchanges. The basic norms for listing of securities
on the stock exchanges are uniform for all the exchanges. These
norms are specified in the listing agreement entered into between the
company and the concerned exchange. The listing agreement
prescribes a number of requirements to be continuously complied with
by the issuers for continued listing and such compliance is monitored
by the exchanges.
It also stipulates the disclosures to be made by the companies and the
corporate governance practices to be followed by them. SEBI has been
issuing guidelines/circulars prescribing certain norms to be included in
the listing agreement and to be complied with by the companies. A
listed security is available for trading on the exchange. The stock
exchanges levy listing fees - initial fees and annual fees - from the
listed companies. It is a major source of income for many exchanges.
A security listed on other exchanges is also permitted for trading. A
listedcompany can voluntary delist its securities from non-regional
stock exchanges after providing an exit opportunity to holders of
securities in the region where the concerned exchange is located. An
exchange can, however, delist the securities compulsorily following a
very stringent procedure.

 Trading Mechanism:

The exchanges provide an on-line fully-automated screen based

trading system (SBTS) where a member can punch into the computer
quantities of securities and the prices at which he likes to transact and
the transaction is executed as soon as it finds a matching order from a
counter party. SBTS electronically matches orders on a strict
price/time priority and hence cuts down on time, cost and risk of error,
as well as on fraud resulting in improved operational efficiency. It
allows faster incorporation of price sensitive information into
 prevailing prices, thus increasing the informational efficiency of
markets. It enables market participants to see the full market on real-
time, making the market transparent. It allows a large number of
participants, irrespective of their geographical locations, to trade with
one another simultaneously, improving the depth and liquidity of the
market. It provides full anonymity by accepting orders, big or small,
from members without revealing their identity, thus providing equal
access to everybody. It also provides a perfect audit trail, which helps
to resolve disputes by logging in the trade execution process in
entirety.

 Trading Rules:

Regulations have been framed to prevent insider trading as well as

unfair trade practices. The acquisitions and takeovers are permitted in
a well-defined and orderly manner. The companies are permitted to
buy back their securities to improve liquidity and enhance the
shareholders’ wealth.

 Price Bands:

Stock market volatility is generally a cause of concern for both policy

makers as well as investors. To curb excessive volatility, SEBI has
prescribed a system of price bands. The price bands or circuit breakers
bring about a coordinated trading halt in all equity and equity
derivatives markets nation-wide. An index-based market-wide circuit
breaker system at three stages of the index movement either way at
10%, 15% and 20% has been prescribed. The movement of either S&P
CNX Nifty or Sensex, whichever is breached earlier, triggers the
breakers. As an additional measure of safety, individual scrip-wise price
bands of 20% either way have been imposed for all securities except
those available for stock options.

 Demat Trading:

The Depositories Act, 1996 was passed to proved for the

establishment of depositories in securities with the objective of
ensuring free transferability of securities with speed, accuracy and
security by (a) making securities of public limited companies freely
transferable subject to certain exceptions;(b) dematerializing the
securities in the depository mode; and (c) providing for maintenance
of ownership records in a book entry form. In order to streamline both
the stages of settlement process, the Act envisages transfer of
ownership of securities electronically by book entry without making
the securities move from person to person. Two depositories, viz.
NSDL and CDSL, have come up to provide instantaneous electronic
transfer of securities. At the end of March 2002, 4,172 and 4,284
companies were connected to NSDL and CDSL respectively. The
number of dematerialized securities increased to 56.5 billion at the end
of March 2002. As on the same date, the value of dematerialized
securities was Rs. 4,669 billion and the number of investor accounts
was 4,605,588. All actively traded scrips are held, traded and settled in
demat form. Demat settlement accounts for over 99% of turnover
settled by delivery. This has almost eliminated the bad deliveries and
associated problems To prevent physical certificates from sneaking
into circulation, it has been mandatory for all new IPO’s to be
compulsorily traded in dematerialized form. The admission to a
depository for dematerialization of securities has been made a
prerequisite for making a public or rights issue or an offer for sale.

 Charges:

A stock broker is required to pay a registration fee of Rs.5, 000 every

financial year, if his annual turnover does not exceed Rs. 1 crore. If
the turnover exceeds Rs. 1 crore during any financial year, he has to
pay Rs. 5,000 plus one-hundredth of 1% of the turnover in excess of
Rs.1 crore. After the expiry of five years from the date of initial
registration as a broker, he has to pay Rs. 5,000 for a block of five
financial years. Besides, the exchanges collect transaction charges
from its trading members. NSE levies Rs. 4 per lakh of turnover. The
maximum brokerage a trading member can levy in respect of
securities transactions is 2.5% of the contract price, exclusive of
statutory levies like SEBI turnover fee, service tax and stamp duty.
However, brokerage charges as low as 0.15% are also observed in the
market.

 Trading Cycle:

Rolling settlement on T+3 basis gave way to T+2 from April 2003.
The market has moved close to spot/cash market.

 Risk Management:

To pre-empt market failures and protect investors, the

regulator/exchanges have developed a comprehensive risk
management system, which is constantly monitored and upgraded. It
encompasses capital adequacy of members, adequate margin
requirements, limits on exposure and turnover, indemnity insurance,
on-line position monitoring and automatic disablement, etc. They also
administer an efficient market surveillance system to curb excessive
volatility, detect and prevent price manipulations.

Exchanges have set up trade/settlement guarantee funds for meeting

shortages arising out of non fulfillment/ partial fulfillment of funds
obligations by the members in a settlement. A clearing corporation
assures the counterparty risk of each member and guarantees financial
settlement in respect of trades executed on NSE.
  Government Securities:

The reforms in the secondary market include Delivery versus

Payment system for settling scrip less SGL transactions to reduce
settlement risks, SGL Account II with RBI to enable financial
intermediaries to open custody (Constituent SGL) accounts and
facilitate retail transactions in scrip less mode, enforcement of a trade-
for-trade regime, settlement period of T+0 or T+1 for all transactions
undertaken directly between SGL participants and up to T+5 days for
transactions routed through NSE brokers, routing transactions through
brokers of NSE, OTCEI and BSE, repos in all government securities
with settlement through SGL, liquidity support to PDs to enable them
to support primary market and undertake market making, special fund
facility for security settlement, etc. As part of the ongoing efforts to
build debt market infrastructure, two new systems, the Negotiated
Dealing System (NDS) and the Clearing Corporation of India Limited
(CCIL) commenced operations on February 15, 2002. NDS facilitates
screen based negotiated dealing for secondary market transactions in
government securities and money market instruments, online reporting
of transactions in the instruments available on the NDS and
dissemination of trade information to the market. Government
Securities (including T-bills), call money, notice/term money, repos in
eligible securities, Commercial Papers and Certificate of Deposits are
available for negotiated dealing through NDS among the members.
 Registration of Intermediaries

The intermediaries and persons associated with securities market shall

buy or sell or deal in securities after obtaining a certificate of
registration from SEBI, as required by Section 12:

Stock broker Sub broker Banker to an Issue

Share transfer Trustee of Trust Registrar to an
Agent Deed Issue
Merchant Banker Underwriter Portfolio Manager
Investment Advisor Depository Depository
Participant
Custodian of Foreign Credit rating
Securities Institutional agency
Investors
Collective Venture Capital Mutual Fund
Investment Funds
Schemes
Any other intermediary associated with the Securities Market
 CHAPTER – 3

RESEARCH DESIGN
 Research Methodology

Meaning

Research means “search for knowledge”. It is a scientific and systematic

search for knowledge on a specific topic.

Definition

According to Clifford Woody “ Research comprises defining and re-

defining problems, formulating hypothesis or suggested solutions,
collecting, organizing & evaluating data, making deductions and
reaching conclusions and at last carefully testing the conclusions to
determine whether they fit the formulating hypothesis.

I have conducted a survey to know the state of mind of the investors

who wanted to invest in the stock market & also to know the attitude and
preference of the prospective investors regarding icicidirect.com .
 Type of Data

In my project, I have used both Primary Data and Secondary Data.

For Primary Data: - It is collected through structured questionnaire

comprising of close-ended questions, and it was filled by the prospective
investors who wanted to invest in the capital market, and also who had
already invested in the stock market.

For Secondary Data: - I have taken the information from the official
website of ICICI Direct i.e, www.icicidirect.com, www.icicibank.com,
www.google.com and also from ICICI Direct proposal and so on… I
have also preferred many Books of various authors, and daily Magazines
and so on….

Sample Size

For my survey I have taken 100 existing and prospecting investors, I

got the questionnaire filled by them to know the state of mind of the
investors who wanted to invest in the stock market, their expected
charges regarding Brokerage, Return, Annual maintenance charges &
also to know the attitude and preference of the prospective investors
regarding ICICI Direct.
 Objective of the Study

The following survey was mainly done with an objective to know the
state of mind of the investors who wanted to invest in the stock market
& also to know the attitude and preference of the prospective investors
regarding capital market with special reference to icici direct .com which
is a online brokage house in India.

Scope of the Study

The following survey was done parallel when an investors is going to

invest in the stock market. The study helps us to know the state of mind
of the investors & their expected charges regarding Brokerage, Return,
Annual maintenance charges, and so on.

The Brokerage house is also benefited as he came to know what an

individual investor expects when he or she is going to invest in capital
market.

Also if the Brokerage house is lacking in some areas, what is that and
how to overcome that.
 CHAPTER – 4

CUSTOMER
BEHAVIOUR
IN
STOCK MARKETS
Meaning of Customer Behaviour
Who is a customer?
A customer refers to individuals or households that purchase goods and
services generated within the economy. The word historically derives
from "custom," meaning "habit"; a customer was someone who
frequented a particular shop, who made it a habit to purchase goods
there, and with whom the shopkeeper had to maintain a relationship to
keep his or her "custom," meaning expected purchases in the future.

Who is a customer in stock market?

Persons who buy’s shares in the stock market are called as customer in
stock market. In a stock market the buyer of shares is not called as
customer but called as investor in stock market.

Customers are called as investor because those people invest their

money in a particular company by purchasing the shares of that
company and becoming the shareholder in that company.

What is Customer Behaviour?

Customer Behavior is "The study of individuals, groups, or
organizations and the processes they use to select, secure, use, and
dispose of products, services, experiences, or ideas to satisfy needs and
the impacts that these processes have on the consumer and society."
 Factors influencing Customer Behaviour
Social Factors

CHART-2 This chart depicts SOCIAL FACTORS influencing

Customer Behaviour

Human beings are social animals. We need people around to talk to and
discuss various issues to reach to better solutions and ideas. We all live
in a society and it is really important for individuals to adhere to the
laws and regulations of society.

Social Factors influencing consumer buying decision can be classified

as under:
 Reference Groups
 Every individual has some people around who influence
him/her in any way. Reference groups comprise of people
that individuals compare themselves with. Every individual
knows some people in the society who become their idols in
due course of time.

Co-workers, family members, relatives, neighbours, friends,

seniors at workplace often form reference groups.

All the above influence the buying decisions of consumers

due to following reasons:

 They have used the product or brand earlier.

 They know what the product is all about. They have
complete knowledge about the features and
specifications of the product.

For Example: Tim wanted to purchase a laptop for himself.

He went to the nearby store and purchased a Dell Laptop.
The reason why he purchased a Dell Laptop was because all
his friends were using the same model and were quite
satisfied with the product. We tend to pick up products our
friends recommend.

 Role in the Society

 Each individual plays a dual role in the society depending on
the group he belongs to. An individual working as Chief
Executive Officer with a reputed firm is also someone’s
husband and father at home. The buying tendency of
individuals depends on the role he plays in the society.

 Social Status
An individual from an upper middle class would spend on
luxurious items whereas an individual from middle to lower
income group would buy items required for his/her survival.

Personal Factors
 CHART-3 This chart depicts PESONAL FACTORS influencing
Customer Behaviour

Following are the Personal Factors which affect behaviour of the

customers:-

 Age and human lifecycle

These also influence the buying behaviour of consumers. For

Example: Teenagers would be more interested in buying bright
and loud colours as compared to a middle aged or elderly
individual who would prefer decent and subtle designs.

 Economic Conditions
The buying tendency of an individual is directly proportional to his
income/earnings per month. How much an individual brings home
decides how much he spends and on which products?

Individuals with high income would buy expensive and premium

products as compared to individuals from middle and lower
income group who would spend mostly on necessary items.

 Lifestyle

Lifestyle, refers to the way an individual stays in the society. It is

really important for some people to wear branded clothes whereas
some individuals are really not brand conscious. An individual
staying in a posh locality needs to maintain his status and image.
An individual’s lifestyle is something to do with his style, attitude,
perception, his social relations and immediate surroundings.

 Personality
An individual’s personality also affects his buying behaviour.
Every individual has his/her own characteristic personality traits
which reflect in his/her buying behaviour.
 Psychological Factors

CHART-4 This chart depicts PSYCHOLOGICAL FACTORS influencing

Customer Behaviour

Following are the Psychological Factors which affects Customer

Behaviour:-
 Perception

What an individual thinks about a particular product or service is his/her

perception towards the same.

For someone a Dell Laptop might be the best laptop while for others it
could be just one of the best brands available.
Individuals with the same needs might not purchase similar products due
to difference in perception.

 Learning

Learning comes only through experience. An individual comes to know

about a product and service only after he/she uses the same. An
individual who is satisfied with a particular product/service will show a
strong inclination towards buying the same product again.

 Beliefs and Attitude

Beliefs and attitude play an essential role in influencing the buying

decision of consumers. Individuals create a certain image of every
product or service available in the market. Every brand has an image
attached to it, also called its brand image.

Consumers purchase products/services based on their opinions which

they form towards a particular product or service.

Behaviour of various Categories of Customers in Stock

Markets
 CHART-5 This chart depicts various Categories of Customers
in Stock Markets

Following are the various types of persons who invests in

Stock Markets:-

 Businessmen
 Salaried Person
 Retired Person

Some of these have perfect knowledge about Stock Markets.

Some have only basic knowledge about Stock Markets.

 Businessmen

They invests in stock markets in order to increase their capital. They are
more likely to take risks in investing because they are already working
in the business field and they have experience about the daily
developments in the market. These individuals have high-risk tolerance
and less of a need to security.

 Salaried Persons

To these investors, security is more important than risk. They want to

play safe, so they invest in the securities who are more safe. Reasons
for this are that these individuals are less likely to have high financial
resources at an early stage in their careers, having had to delay
earning good salaries in order to study or having to repay student
loans.

 Retired Persons

These investors are cautious and intent on safeguarding their wealth,

shunning volatility or excitement. These take the path of least
resistance, looking primarily for security and safe in their investments
and doing what has worked previously.
 CHAPTER – 5

CUSTOMER BEHAVIOUR

WITH RESPECT TO

ICICI DIRECT

Who are the customers in ICICI DIRECT ?

All those person who had there demat account open with icicidirect.com
are called the customer of ICICI Direct .

How to open account with ICICI Direct?

For Online Stock Trading with ICICI, investor needs to open 3
accounts...ICICI Bank Account, ICICI Direct Trading Account and
ICICI Demat Account (DP Account).
Note: If you already have a bank account or demat account with ICICI,
you could link it with new ICICI Direct trading account.
Opening trading account with ICICI is easy. You could use one of the
following options to open account with ICICI Direct.
 Visit ICICIDirect.com and fill the "Open an Account" form.
 Call ICICI and tell them that you are interested in opening an
account with them.
In both the cases ICICI representative contact you in a day or two and
tell you about the procedure to open the account. They usually send
somebody to your home to collect documents, signature and for demo if
required.

Which are the various categories of people who are the

customer of ICICI DIRECT ?
All those categories of people who invest in stock market are the
categories of person who are the customer of icici direct .com. As some
of the customers in ICICI DIRECT are of business class some are
salaried one and some are retired person

Various categories of customer defined by ICICI Direct:

ICICI DIRECT classify there customer on the basis of there response to

stock market. Such as if a customer is regularly trading in stock market
through it’s demat account then that customer is treated as TEQ (trading
on equity) customer.

In the same way other categories of customer are:

 NT (Non-Trader):

All those customer who had open there demat account with ICICI Direct
but not started trading in stock market through that demat account after 3
month of its account opening date those customer are treated as non
trader by ICICI Direct.

 ST (Stop Trader):
Those entire customers who had traded with its account once or twice
and after that stop trading through its account due to some reasons are
known as stop traders.

Proportion of various customers in ICICI DIRECT

CHART-6 This chart depicts Proportion of Customers in

ICICI DIRECT
 CHAPTER - 6

SWOT ANALYSIS

OF

ICICI DIRECT

What is SWOT ANALYSIS ?

A scan of the internal and external environment is an important part of
the strategic planning process. Environmental factors can be classified as
Strengths (S) or Weakness (W), and those external to the firm can be
classified as OPPURTUNITY (O) or THREATS (T). Such an analysis
of the strategic environment is referred to as a SWOT ANALYSIS.
The SWOT analysis provides information that is helpful in matching the
firm’s resources and capabilities to the competitive environment in
which it operates. As such, it is instrumental in strategy formulation and
selection. The following diagram shows how SWOT ANALYSIS fits
into an environmental scan:

ENVIRONMENTAL
SCAN
INTERNAL EXTERNAL

STRENGTHS WEAKNESS OPPURTUNITIES THREAT

S

CHART-7 This chart depicts FRAMEWORK of SWOT

ANALYSIS

Strengths:
A firm’s strengths are its resources and capabilities that can be used as a
basis for developing a competitive advantage. Examples of such
strengths include:
 3-in-1 account integrates your banking, broking and demat
accounts. All accounts are from ICICI and very well integrated.
This feature makes ICICI the most interesting player in online
trading facility. There is absolutely no manual interfere require.
This is truly online trading environment.
 Unlike most of the online trading companies in India which
require transferring money to the broker's pool or towards
deposits, at ICICI Direct you can manage your own demat and
bank accounts through ICICIdirect.com. Money from selling
stock is available in ICICI bank account as soon as the ICICI
Direct receives it.
 Investment online in IPOs, Mutual Funds, GOI Bonds, and
Postal Savings Schemes all from one website. General
Insurance is also available from ICICI Lombard.
 Trading is available in both BSE and NSE
 Good reputation among customers as icici direct.com provides a
relationship manager to every client.
 Cost advantages from proprietary know how.
 Exclusive access to high-grade natural resources.
 Online trading platform
 Diverse Branch Network provides ample opportunities to
penetrate deep into the existing & untapped market. Since its
inception in financial year 2000 the company and its
subsidiaries have grown from a single location to a nationwide
network spread over various cities.
 Personal relationship manager who will help assist the clients in
share trading
 No custodial charge
 It does not keep any condition as to collect minimum amount of
brokerage from its clients
 Equity analysis report to support the investment decision of its
clients
 Trading via branch network, telephones and internet account i.e.
both online and offline
 Strong market presence and increased market share leading to a
virtuous cycle of growth and profitability
 The incentive model is created such that it leads to generation of
higher revenue for the organization. This acts as a motivating
factor for the employees to perform well.
 An added advantage of icicidirect.com is its strong brand name,
which helps its sales force to sell the products.

Weakness:
 Getting access to ICICIDirect.com website during market
session can be frustrating.
 ICICI Direct brokerage is high and not negotiable.
 Not all stocks are available under Margin Plus
 You don’t have personal or physical interface with the broker or
advisor. This could be very good for those who take their own
decisions and are self-directed traders. If, however, somebody is
 not so, then Net trading is only an enabler and not the sole
medium for decision-making for on-line trading.
 Too many people try to eat the same piece of pie i.e. people
employed in icicidirect.com hit the same area to target their
customers.
 There should be a separate set of staff working in fields and
trading on behalf of their clients: icici direct.com has same set
of staff who are making clients and also trading on behalf of
clients this hinders the relationship manager to provide adequate
and necessary tips to the clients and at times the managers are
not in the position to answer the questions of their clients
relating to the current market position as they are on fields.
 Due to the continuous need to meet the targets, some of the
Relationship managers crack under pressure and thus leave the
organization
 There is no limit to the maximum number of clients that a
Relationship manager can handle. This affects the level of
service provided to the clients who are not volume traders.

Opportunities:

The external environmental analysis may reveal certain new

opportunities for profit and growth some examples of such opportunities
include:
  The market will gradually evolve into two segments, where
there will be self-directed traders and those who seek advice for
making their investment decisions. The latter set will prefer to
speak to the broker, get his advice and then trade through certain
channels. So both have to co-exist, as is the case in almost all
the mature markets
 Scope of online trading on BSE
 An unfulfilled customer need.
 Market expansion i.e. opening branches at untapped areas
 The Capital market in the last few years has turned out to be one
of the favorable avenues for the retail investors. This is due to
the performance of the Indian Industry in various sectors and the
Economy in general. Even the future outlook looks promising.
 Market seems favorable for commodities trading.

Threats:

Changes in the external environmental also may present threat to the

firm some of the examples include:
Emergence of competitor company who charging less brokerage
 Companies like Sharekhan, Indiabulls, Kotak, and Private
Brokers are major threats to ICICI Direct.
 Local brokers capable of charging lower brokerage
 Industry competitors vying for the same target segment.
 Changes in SEBI guidelines & other tax implications.
 Government Regulations
 Shifts in consumer tastes away from firm’s products.
 FINDINGS

About stock markets:-

 This analysis contributes to our understanding that every investor

is different, with different financial goals, different tolerances to
risk, different personal situations and different desires. The
Objectives being the type of return being sought, while
constraints include factors such as time horizon, how liquid the
investor is, any personal tax situation and how risk is handled.
 The analysis also show that the majority of investors are more
probable to sell (buy) stocks in a company after a positive
(negative) earnings surprise, and are biased towards buying after
the disclosure of new financial statement information. Large
investors, on the other hand, show behavior opposite to that of the
majority of investors. We suggest investor overconfidence and
asymmetric information as possible explanations for the
documented behavior.
 Uneducated mass do not have much information about the stock
market but invest in stock market according to the saying of
other.
 Businessmen make more investment in stock market whereas a
salaried investors are busy at work during the week and consider
trading decisions mainly during the weekend and
consequently they are more likely to trade (either buy or sell) on
Mondays.
 There is a fear factor among general public in concerned with
share market. They think it is speculation.

About ICICI DIRECT :-

 People are not aware of using the online trading facilities

 ICICI DIRECT has captured the market because of its brand
name and the brand awareness in the minds of the consumers. But
people are yet to know about its excellent service which would
definitely help the company to capture more and more new
customers
 Some consumers prefer ICICI DIRECT because of their trust in
ICICI BANK.
 Customer feel that the brokerage charged by ICICI DIRECT are
very high as compared to other brokerage house but they are not
aware of the various facilities(margin trading,
recommendation etc) provided by ICICI DIRECT to its customer
which make it unique
 Many clients did not know about the change of RM. This leaves a
bad impression on the concerned client, damaging the reputation
of the firm
 Many time clients are not given confirmation after the trade
 Some time the database (including customer contact number and
address) maintained by the company is wrong that create a
problem to the company to have a regular touch with its
customer.
 CHAPTER - 7

CONCLUSIONS

&

RECOMMENDATIONS
 Conclusions

Indian economy is growing faster. This is one of the best growing

economies among the world. You can say the best emerging economy of
the world. Stock market is the reflection of economy. Naturally stock
market of India is roaring. Sensex (One of the best Index of Bombay
Stock Exchange) has climbed from 3,000 to 22,000 in last five years and
it is believed that it will reach 40000 in coming years. Now a day's every
investor and trader enjoying sweet taste of stock. More all less every day
many stock prices have been increasing. Some of them are heating the
upper circuit (5%,10%20%).
While making an investment in Indian stock market there are lots of
thing you should consider before it. I will guide you most important
thing and tips that you can implement while making any investment in
stock market of India. These stock market tips and tricks are based on
many years of expertise experience and as a professional expert in
Indian stock market. These are the Stock market secrets:-
 Buy at low and sell at high: - This is way to make money in
stock market that you should buy at lower prices and should
sell at higher prices. It determines the success and failure of an
investor in stock market of India
 Current Trend of Stock Market: - As per current trend of
stock market it has been seen that once stock market rise at
 higher speed it down also with same speed and if stock market
have gone down there is more possibilities of getting
up. This is the current market trends but it can be change in
future.
 Keep patience: - Patience is also plays a vital role in your
winning and losing. In stock market many peoples take
immediate decisions which can result in big losses later on. This
is the nature of stock market every step should be take after a
deep thinking and consideration on it.
From the above survey & comparison charts : We can conclude that the
majority of prospective investors from the sample i.e.70% does not want
to invest in the capital market because either they don’t have sufficient
knowledge about stock market or they don’t have time or they feel that it
is risky to invest in stock market.
At last from my study I would like to conclude that icici direct .com is
growing at a good pace. It is rapidly increasing its market share by
capturing new consumers and also by retaining the key customers who
preferred ICICI Bank.
However the beat and the unique qualities of the company are yet to be
known by the people. The investors must be informed about its facilities
like 3in1 account, margin based trading, research tips given on website
under I-click to gain and I-click to invest and many others.
Even though there are lots of opportunities to expand & progress for the
company but still it is making sufficient profit.
Last but not the least, ICICI DIRECT is customer friendly and this
obviously makes a value addition to any company in this competitive
environment.
My experience with this company as a summer trainee was a
overwhelming, which gave me a lot of knowledge and idea about stock
market and the brokage house. Besides I came to know the difference
between the class room study and the real work done in the market to
make a product rise in the market

Recommendations

Working of Back Office

Following are the recommendations for effective working of Back
Office:-
 There should be a person solely responsible for checking the
Registration Kit to ensure that it is complete in all respects and
there are no rejections.
 The policies related to Trading and DP should be consistent and
in congruence with each other.
 The time lag between giving in the kits for registration and
opening the account should be reduced to ensure speedy and
efficient service.
  Any change in the policies of company should be given atleast
one month notice before implementing it.

After getting Leads attention should be made on

following points:
 The calls made should be more informative and assertive.
 The RM should provide an in depth demonstration of the
software and client should be assisted regularly.
 Provision of a manual for online clients for ease of operation.
 Time lag between the complaints put and follow up should be
reduced.
 Database should be verified properly, so that repeated entries do
not occur. This will reduce inconvenience to the clients, who
complained about multiple calls received.

Analysis of Client Interaction

(Already existing clients)

The most crucial aspects for any business are client interaction and after
sales services. We carried out a study to gauge the level of satisfaction of
the clients with the services of icicidirect.com. This helped us in
understanding why icicidirect.com has become one of the most trusted
brands within a short span of its commencement.

 The Relationship Managers (RM) should be made responsible to

ensure that the clients are well catered, thus, reducing switching
over of a lot of time lag is there between the follow up and the
change of RM, as a result, the calls could not leave a positive
impact on the clients, so contacted. Therefore, follow up should
be done fast without any time lag.
 The customers, who were satisfied with the services, appreciated
this kind of follow up. Therefore, such follow-ups are done from
time to time, to gain customer confidence.
 Many clients are not given confirmation after the trade, so they
should be given due information about it.
 Complete net knowledge should be given to clients so that they
may not find any difficulty in login of their A/C on the website of
icicidirect.com.
 Routing, thereby reducing loss of business to the firm.
 APPENDIX

BIBLIOGRAPHY
&
WEBLIOGRAPHY

Bibiliography
Books
 Leon G. Schiffman ,“Consumer Behaviour” Dorling Kindersley
(India) Pvt. Ltd. - 2007

 Debbie Mayo, “101 Quick Tips to create Customer

Experience”, Penguin NZ – 2008

 Brett King, “How Customer Behaviour & technology will

change the future of Financial Services”, Marshall Cavendish –
2010

 Stevens Debra, “Brilliant Customer Services”, P.Ed United

Kingdom - 2011

Webliography

 www.icicidirect.com
 www.icicibank.com
 www.google.com
 www.icicisecurities.com