A

Summer Training Report

On
“CONSUMER PREFERANCE TOWARDS DEMAT A/C WITH
ICICI BANK”
Submitted for partial fulfillment of requirement for the award of
degree of

Master of Business Administration

Of

CHHATTISGARH SWAMI VIVEKANAND TECHNICAL UNIVERSTY

BHILAI (C.G.) Session 2009-11

Guided by, Submitted by,

MRS. SARITA DASH NEELAM MESHRAM
Lecturer MBA Department Roll No: MBA/09/4233
MBA III Semester 2010

DEPARTMENT OF MANAGEMENT
RUNGTA COLLAGE OF ENGINEERING & TECHNOLOGY
APPROVED BY AICTE, NEW DELHI

RCET, BHILAI, MBA 2009-2011

 KOHKA-KURUD ROAD, BHILAI

DECLARATION

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

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

PERCEPTION TOWARDS DEMAT A/C WITH ICICI BANK ”as part of Summer Training

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

to any university / Institution for the award of any degree

APPROVED BY, GUIDED BY,

MR.RAMAN R RAO MRS. SARITA DASH

Head Of Department Lecturer MBA Department

Date: SUBMITTED BY,

Place: NEELAM MESHRAM

Roll No: MBA/09/4233
MBA III Semester 2010

RCET, BHILAI, MBA 2009-2011

 ACKNOWLEDGEMENT

It was a great opportunity for me to work with ICICI bank in the field of Finance Industry. I am
extremely grateful to all those who have shared their expertise and knowledge with me and
without whom the completion of this project would have been virtually impossible.

Firstly, I would like to thank our Company Guide Mr. Gulzar Marhas Training Manager who
has been a constant source of inspiration for me during the completion of this project. He gave
me invaluable inputs during my endeavor to complete this project. I am indebted to all staff of
ICICI bank for their valuable support and cooperation during the entire tenure of this project.
Not to forget, all those who have kept my spirits surging and helped delivering my best.

I would also like to convey my deep regards to MRS SARITA DASH, Project Guide, RCET
and to all my team members who had always bestowed upon me their goodwill, blessings and
providing me with the best of amenities.

Signature of the student

Name: NEELAM MESHRAM
Roll no :MBA/09/4233
III Semester

RCET, BHILAI, MBA 2009-2011

 PREFACE

The successful completion of this project was a unique experience for me because by visiting
many place and interacting various person, I achieved a better knowledge about sales. The
experience which I gained by doing this project was essential at this turning point of my career
this project is being submitted which content detailed analysis of the research under taken by me.
The research provides an opportunity to the student to devote his/her skills knowledge and
competencies required during the technical session.

The research is on the topic “COMSUMER PREFERANCE TOWARDS

DEMAT A/C WITH ICICI DIRECT”

RCET, BHILAI, MBA 2009-2011

 TABLE OF CONTENTS

CHAPTERS TITLE

Chapter 1 Introduction about the Project

1.1 Introduction
1.2 objectives of the study
1.3 scope of the study
1.4 Limitations of the study

Chapter 2 Introduction of the company and Demat

2.1 Company profile
2.2 History of ICICI
2.3 Organizational structure
2.4 Introduction about ICICI DIRECT
2.5 3-in-1 A/C

Chapter 3 Research Methodology

Chapter 4 Data Analysis and interpretation

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Chapter 5 Findings of the Project
Chapter 6 Conclusion of the Project
7.1 Conclusion from Analysis
7.2 Learn from Analysis
Chapter 7 Suggestions for Recommendations
Chapter 8 Questionnaire
Chapter 9 Bibliography and reference

CHAPTER-1

INTRODUCTION ABOUT THE

PROJECT

RCET, BHILAI, MBA 2009-2011

 INTRODUCTION

It is true that all market starts with consumer and closes with consumer therefore consumer plays
an important role. Consumer decides what to purchase, for whom to purchase, why to purchase,
from where to purchase, and how much to purchase. In order to become a successful marketer,
he must know the liking or disliking of the customers.
For any market it is very important to know the perception level of any
consumer. There are so many services are providing in the market by many organization so it is
very difficult to find out that how many people are aware of our service and how many of them
are actually utilizing that service.
The study of the consumer perception not only focuses on how consumers’
perusing, but also focuses on how and why consumers make choice of the services they buy and
their evaluation of these services after use. So for success of any company or product promotion
it is very necessary to depart its concentration towards consumer perception so that after
understanding they can make a choice.

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 OBJECTIVE OF THE PROJECT REPORT

There are two types of objectives of the study.

 Primary objective – To know the consumer perception towards DEMAT Account of
ICICI.
 Secondary objective - To collect the information about the preference level
of consumer using DEMAT account.

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 SCOPE OF THE STUDY

 The scope is to provide the more information to the customer about the various
services provided by the company so that they also be more aware about the
services of the company.

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

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 LIMITATIONS

a) More enquiries.

For opening a Demat a/c in bank, they require lots of information about an individual for
which they enquire more and more to them.

b) Charges applied.

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

c) Risky in terms of operation.

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

d) Technical in nature.

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

CHAPTER 2

INTRODUCTION OF THE COMPANY

AND DEMAT A/C

RCET, BHILAI, MBA 2009-2011

 2.1 COMPANY PROFILE

ICICI Bank (formerly Industrial Credit and Investment Corporation of India) is a major banking
and financial services organization in India. It is the 4th largest bank in India and the largest
private sector bank in India by market capitalization. The bank also has a network of 2,016
branches (as on 31 March 2010) and about 5,219 ATMs in India and presence in 18 countries as
well as some 24 million customers (at the end of July 2007). ICICI Bank offers a wide range of
banking products and financial services to corporate and retail customers through a variety of
delivery channels and specialization subsidiaries and affiliates in the areas of investment
banking, life and non-life insurance, venture capital and asset management. (These data are
dynamic.) ICICI Bank is also the largest issuer of credit cards in India.

RCET, BHILAI, MBA 2009-2011

 2.2 HISTORY OF ICICI

 In 1955-The Industrial Credit and Investment Corporation of India Limited (ICICI)

incorporated at the initiative of the World Bank, the Government of India and
representatives of Indian industry, with the objective of creating a development financial
institution for providing medium-term and long-term project financing to Indian
businesses. Mr.A.Ramaswami Mudaliar elected as the first Chairman of ICICI Limited

 ICICI emerges as the major source of foreign currency loans to Indian industry. Besides
funding from the World Bank and other multi-lateral agencies, ICICI also among the first
Indian companies to raise funds from International markets.
 In 1956-ICICI declared its first Dividend at 3.5%.

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

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

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  1972-Second entity in India to set-up merchant banking services.
 1977-ICICI sponsors the formation of Housing Development Finance Corporation.
Managed its first equity public issue

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

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

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

 1986-ICICI promotes Shipping Credit and Investment Company of India Limited.

(SCICI).

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

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

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

 1993-ICICI sets up ICICI Asset Management Company.

 1994-ICICI sets up ICICI Bank.

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

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

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

 1997-The name "The Industrial Credit and Investment Corporation of India Limited” was
changed to "ICICI Limited".

 1997-ICICI announces takeover of ITC Classic Finance.

 1998-Introduced the new logo symbolizing a common corporate identity for the ICICI
Group.

 1999-ICICI launches retail finance - car loans, house loans and loans for consumer
durables.

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

 2000-ICICI Bank announces merger with Bank of Madura.

 2000- ICICI Bank became the first Indian bank to list on the New York Stock Exchange
with its $175-million American depository shares issue generating a demand book 13
times its size at $2.2 billion. The Bank proposes to bring credit cards to the "large,
underserved population" in rural and semi-urban areas. The ICICI has announced the
launch of mobile banking services for its customers, using the wireless application
protocol (WAP) technology. ICICI Bank becomes the first commercial bank from India
to list its stock on NYSE.

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

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

 The Bank proposes to extend its area of operation by opening about 35 to 40 offices and
extension counters during the current fiscal subject to the Reserve Bank of India's
approval. ICICI has signed a tripartite agreement with Amitabh Bachchan Corporation
Ltd. and Mr. Amitabh Bachchan, appointing him as its brand ambassador.

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

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

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

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

 Launches e Cheques facility for its internet banking launches a scheme called `Mutual
Fund Sweep Account' which enables its customers to invest surplus funds in their current
accounts in high-liquidity mutual funds through an automatic sweep facility

 High Court approves ICICI, ICICI Bank merger

 RBI approves ICICI Bank--ICICI merger

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

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  ICICIdirect.com unveils Direct Alerts.

 World's Best Internet Bank Awards 2002

 Ties up with IL&FS Mutual Fund to offer to mutual fund products online
 Gets Debt Recovery Appellate Tribunal (DRAT) approval to divest Daewoo's
Surajpur assets
 Figures among the Top 1000 world banks
 ICICI Bank bags UK Banker Magazine award
 Becomes the first Indian bank to launch a Resident Foreign Currency (RFC)
account
 ICICI Bank chairman Mr. N Vaghul heads Asset Reconstruction Company (ARC)
 2004-ICICI bank credit cards cross two million marks ICICI Banks 300 million
dollar Eurobond has been awarded for being the best bond issue of India and
emerging Asian market during 2003, by two foreign magazines

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

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

 In 2006 ICICI Bank became the largest retail player in the market to introduce a
biometric enabled smart card that allow banking transactions to be conducted on the field.
A low-cost solution, this became an effective delivery option for ICICI Bank’s micro
finance institution partners.
 In 2007 ICICI Bank‘s USD 2 billion 3-tranche international bond offering was the largest
bond offering by an Indian bank.
 Sangli Bank amalgamated with ICICI Bank.

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

 ICICI Bank became the first bank in India to launch a premium credit card -- The Visa
Signature Credit Card.
 ICICI Bank became the first private bank in India to offer both floating and fixed rate on
car loans, commercial vehicles loans, construction equipment loans and professional
equipment loans.
 In 2008 ICICI Bank enters US, launches its first branch in New York
 ICICI Bank enters Germany, opens its first branch in Frankfurt
 ICICI Bank launched iMobile, a breakthrough innovation in banking where practically all
internet banking transactions can now be simply done on mobile phones.
 In 2009 ICICI bank ties up with BSNL Cell One for bill payments, it will facilitate bill
payment for BSNL Cell One users through www.icicibank.com across all the 27 circles
of BSNL.
 Ms Chanda Kochhar takes charge as the Managing Director & CEO of ICICI Bank from
May 1, 2009

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 2.3 ORGANIZATIONAL STRUCTURE
OF ICICI

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 2.4 INTRODUCTION ABOUT ICICI DIRECT

ICICIdirect.com is the most comprehensive website, which allows you to invest in Shares,
Mutual funds, Derivatives (Futures and Options) and other financial products. Simply put we
offer you a product for every investment need of yours.

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 1. TRADING-IN-SHARE:
ICICIdirect.com offers you various options while trading in shares.

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

Margin Trading : You can also do an intra-settlement trading up to 3 to 4 times your

available funds, wherein you take long buy/ short sell positions in stocks with the intention of
squaring off the position within the same day settlement cycle.

Margin PLUS Trading : Through Margin PLUS you can do an intra-settlement trading up
to 20 times your available funds, wherein you take long buy/ short sell positions in stocks 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 f or you, On selling shares through "cash on spot", money is credited to
your bank a/c the same evening & not on the exchange payout date. This money can then be
withdrawn from any of the ICICIBank ATMs.

2. TRADE IN DERIVATIVES:

Futures

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Through ICICIdirect.com, you can now trade in index and stock futures on the NSE. In futures
trading, you take buy/sell positions in index or stock(s) contracts having a longer contract period
of up to 3 months.

Options

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

3. INVESTING IN MUTUAL FUNDS:

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

With the inclusion of Fidelity MF, you can now invest on-line in 19 mutual Funds through
ICICIdirect.com. Prudential ICICI MF, JM MF, Alliance MF, Franklin Templeton MF,
Sundaram MF, Birla Sun Life MF, HDFC MF, Principal MF, UTI MF, Reliance MF, Kotak MF,
Tata MF, DSP Merrill Lynch MF, ING MF, CHOLA MF, Deutsche MF, HSBC MF and
Standard Chartered MF are the Mutual Funds available for investment. You can invest in mutual
funds without the hassles of filling application forms or any other paperwork. You need no
signatures or proof of identity for investing.

4. IPOs AND BOND ONLINE:

You could also invest in Initial Public Offers (IPOs) and Bonds online without going through the
hassles of filling ANY application form/ paperwork.

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 5. PERSONAL FINANCE:

Use our Personal Finance section and get hold of tools that can help you plan your investments,
retirement, tax etc. Analyze your risk profile through the Risk Analyzer and get a suitable
investment portfolio plan using Asset Allocator.

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 2.5 ICICI DIRECT provides us 3 in 1 account
facilities:

 SAVING ACCOUNT

 TRADING ACCOUNT

 DEMAT ACCOUNT

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 SAVING ACCOUNT

Savings accounts are accounts maintained by retail financial institutions that pay interest but
can not be used directly as money ( for example, by writing a cheque). These accounts let
customers set aside a portion of their liquid assets while earning a monetary return.

Costs

Withdrawals from a savings account are occasionally costly and are sometimes much higher and
more time-consuming than the same financial transaction being performed on a demand (current)
account. However, most savings accounts do not limit withdrawals, unlike certificates of deposit.
In the United States, violations of Regulation D often involve a service charge, or even a
downgrade of the account to a checking account. With online accounts, the main penalty is the
time required for the Automated Clearing House to transfer funds from the online account to a
"brick and mortar" bank where it can be easily accessed. During the period between when funds
are withdrawn from the online bank and transferred to the local bank, no interest is earned.

Online savings accounts

Some financial institutions offer online-only savings accounts. These usually pay higher interest
rates and sometimes carry higher security restrictions. Those with high interest rates have risen
in popularity with the rise of the internet.[2]

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 TRADING ACCOUNT

Trading account assets refer to a separate account managed by banks that buy (underwriting)
U.S. government securities and other securities for their own trading account or for resale at a
profit to other banks and to the public, rather than for investment in the bank's own investment
portfolio. Trading assets are segregated from the investment portfolio. They are recorded
separately when acquired until they are disposed of or sold, and are then recorded at the price in
effect when these securities are purchased or sold. Trading assets held for other banks are
marked to market (adjusted to current market value) while held by a bank.

Trading in dematerialized securities is quite similar to trading in physical securities. The major
difference is that at the time of settlement, instead of delivery/ receipt of securities in the
physical form, it is done through account transfer.

An investor cannot trade in dematerialized securities through his DP. Trading at the stock
exchanges can be done only through a registered trading member (broker) of the stock exchange
irrespective of whether the securities are held in physical or dematerialized form. DPs role will
only be to facilitate settlement of trade in the dematerialized form, by transferring securities from
and to the account of the investor, for selling and buying respectively.

Trading in dematerialized securities is presently available at NSE, BSE, CSE, DSE, LSE, MSE,
ISE & OTCEI. These exchanges have a segment exclusive for trading in dematerialized
securities and a segment where trades could be settled either in the physical or in the
dematerialized form as per the choice of the delivering client. In unified (erstwhile - physical)
segment securities can be delivered either in the physical form or in the dematerialized form at
the choice of the delivering party.

However, securities that have to be mandatorily settled in demat form (both by institutional
investors & all category of investors) cannot be settled in physical form. Also for securities that
have to be mandatorily settled in demat form by all categories of investors the concept of market
lot is eliminated i.e. the tradable lot is one share from the date they become compulsory.

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Since January 4, 1999, all categories of investors can deliver only in dematerialized form with
respect to a select list of securities (which is expanded from time to time). For these scrips, from
the date they become compulsory, the concept of market lot is eliminated i.e. the tradable lot for
these scrip’s is one share. This will be applicable only at those exchanges that have joined the
depository.

Also, from January 15, 1998, select category of investors can deliver only in dematerialized form
with respect to a select list of securities (which is expanded from time to time).

Consequently there will be separate price quotes available for each scrip’s in both the segments.
The trades in each of these segments cannot be netted off with each other.

The facility of delivering dematerialized securities in the physical segments of the stock
exchanges is available for all the companies that are eligible for dematerialization. This also
applies to delivery against auction of securities in the physical segment.

However, at DSE dematerialized securities can be presently traded only in the exclusive demat
segment. They are not accepted as good delivery in the physical segment. At LSE,
dematerialized securities can be delivered only in the unified (erstwhile - physical) segment.
Presently, LSE does not have an exclusive demat segment.

Non pari-passu shares (like partly paid up bonus/ right shares with pro-rata dividend) are
identified with separate ISIN (scrip codes) and can be traded separately. These can also be
delivered against obligation in pari-passu shares along with dividend cheques.

In the unified (erstwhile - physical) segment, auction trade obligations can be met & delivering
dematerialized securities can make bad delivery rectification.

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

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Any investor, who buys securities from any of the stock exchanges where dematerialized
securities are available, may receive his delivery in the dematerialized form as dematerialized
shares can be delivered in the physical segment at the option of the seller.

Therefore those investors who buy securities from these exchanges should necessarily open a
depository account to take delivery of these shares.

SQUARING OFF

It is possible to square off trades in dematerialized securities. In the exclusive demat segment,
the trades can be squared off within the same day as this segment follows a rolling settlement
cycle. In the physical segment the trades can be squared off within the trading period specified
for that stock exchange. This is presently five working days, between Wednesday to Tuesday at
NSE, Monday to Friday at BSE and Thursday to Wednesday at CSE. At CSE for some of the
shares (classified as specified group) the trading period is 14 days.

If an investor squares off his position within the trading period, he does not need to open a
depository account. A Depository accounts is required for taking delivery or giving delivery of
dematerialized securities in case of buy or sell respectively. In case the investor squares off his
trade, and hence, does not have to take or give delivery of dematerialized securities, the
depository account is not used.

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

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

RCET, BHILAI, MBA 2009-2011

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

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

Margin PLUS Trading : Through Margin PLUS you can do an intra-settlement trading
up to 20 times your available funds, wherein you take long buy/ short sell positions in
stocks with the intention of squaring off the position within the same day settlement cycle

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 DEMAT ACCOUNT

Overview of Demat Account

Demat account allows you to buy, sell and transact shares without the endless paperwork and
delays. It is also safe, secure and convenient. In India, a Demat account, the abbreviation for
dematerialized account, is a type of banking account which dematerializes paper-based physical
stock shares. The dematerialized account is used to avoid holding physical shares: the shares are
bought and sold through a stock broker. This account is popular in India. The Securities and
Exchange Board of India (SEBI) mandates a Demat account for share trading above 500 shares.
As of April2006, it became mandatory that any person holding a Demat account should possess a
Permanent Account Number (PAN), and the deadline for submission of PAN details to the
depository lapsed on January 2007.

Is a Demat account a must?

Now a day, practically all trades have to be settled in dematerialized form.
Although the market regulator, the Securities and Exchange Board

What is Dematerialization?
Dematerialization or “Demat” is a process whereby your securities like shares, etc, are converted
into electronic data and stored in computers by a Depository. Securities registered in your name
are surrendered to depository participant (DP) and these are sent to the respective companies
who will cancel them after “Dematerialization” and credit your depository account with the DP.
The securities on Dematerialization appear as balances in your depository account. These
balances are transferable like physical shares. If at a later date, you wish to have these “Demat”
securities converted back into paper certificates; the Depository helps you to do this.

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Dematerialization is the process of converting the securities held in physical form (certificates)
to an equivalent number of securities in electronic form and crediting the same to the investor’s
Demat account.

Dematerialized securities do not have any certificate numbers or distinctive numbers and are
dealt only in quantity i.e.; the securities are fungible.

Dematerialization of your holdings is not mandatory. You can hold your securities either in
demat form or in physical form. You can also keep part of your holdings (in the same scrip) in
demat form & part in physical form. However, securities specified by SEBI can be delivered
only in demat form in the stock exchanges connected to NSDL and / or CDSL.

Steps involved in opening a Demat account

First an investor has to approach a DP and fill up an account opening form. The account opening
form must be supported by copies of any one of the approved documents to serve as proof of
identity (POI) and proof of address (POA) as specified by SEBI. Besides, production of PAN
card in original at the time of opening of account has been made mandatory effective from April
01; 2006.All applicants should carry original documents for verification by an authorized official
of the depository participant, under his signature.

Further, the investor has to sign an agreement with DP in a depository prescribed standard
format, which details rights and duties of investor and DP. DP should provide the investor with a
copy of the agreement and schedule of charges for their future reference. The DP will open the
account in the system and give an account number, which is also called BO ID (Beneficiary
Owner Identification number).

The DP may revise the charges by giving 30 days notice in advance. SEBI has rationalized the
cost structure for dematerialization by removing account opening charges, transaction charges

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for credit of securities, and custody charges vide circular dated January 28, 2005. Further, SEBI
has vide circular dated November 09, 2005 advised that with effect from January 09, 2006, no
charges shall be levied by a depository on DP and consequently, by a DP on a Beneficiary
Owner (BO) when a BO transfers all the securities lying in his account to another branch of the
same DP or to another DP of the same depository or another depository, provided the BO
Account/s at transferee DP and at transferor DP are one and the same, i.e. identical in all
respects. In case the BO Account at transferor DP is a joint account, the BO Account at
transferee DP should also be a joint account in the same sequence of ownership.

What is Depository?
A depository is like a bank where securities are held in electronic (dematerialized) form. In
India, there are two Depositories – National securities Depositories Limited (NSDL) and Central
Depository Services Limited (CDSL).Under the Depositories Act, investors can avail of the
services of the Depositories through Depository Participants (DP) such as ICICI bank. DP’s are
like bank branches wherein shares in physical form need to be deposited for converting the same
to electronic (Demat) form.

NSDL carries out its activities through various functionaries called business partners who
include Depository Participants (DPs), issuing corporate and their Registrars and Transfer
Agents, Clearing corporations/Clearing Houses etc. NSDL is electronically linked to each
of these business partners via a satellite link through Very Small Aperture Terminals (VSATs).
The entire integrated system (including the VSAT linkups and the software at NSDL and each
business partner’s end) has been named as the “NEST” [National Electronic Settlement &
Transfer] system.

The investor interacts with the depository through a depository participant of NSDL. A DP can
be a bank, financial institution, a custodian or a broker. Just as one opens a bank account in order
to avail of the services of a bank, an investor opens a depository account with a depository
participant in order to avail of depository facilities.

RCET, BHILAI, MBA 2009-2011

Rights
1. You can open more than one depository account in the same name with single DP/
multipleDPs.
2. No minimum balance is required to be maintained in a depository account.
3. You can give a onetime standing instruction to your DP to receive all the credits coming to
your depository account automatically.

Procedure
1. Fill account opening form (available with your DP).
2. Give your DP the duly filled account opening form with introduction documents as may be
required.
3. Sign agreement with DP (agreement will state rights & obligations of both parties). The
agreement will contain the fee structure of your DP. Your DP would give you a copy of this
signed agreement for your record.
4. DP would give you Client Id no. (Account no.) Once your depository account is opened. This
Client Id no. along with your DP Id no. Forms a unique combination. Both these nos. should be
quoted in all your future correspondence with DP/NSDL / Issuing Company/their registrar &
transfer (R&T) agent
5. Your DP would give you pre-printed instruction slips for depository services viz.,
dematerialization, delivery instruction for trades, etc.Preserve these carefully.
6.Your DP would give you a list of deadlines for giving instructions for various depository
activities viz., transfer for effecting sale, purchase etc.. If not, check with the DP.

RCET, BHILAI, MBA 2009-2011

Required Documents

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

according to your relationship with the institution. If you plan to open a Demat account with a
bank, a savings account holder has an edge over the non-account holder. In fact, banks usually
offer additional incentives to customers who open a Demat account with them. Along with the
application form, your photographs (with co-applicants) and proof of identity/residence/date of
birth have to be submitted. The DPs also ask for a DP-client agreement to be executed on non-
judicial stamp paper. Here is a broad list (you won’t need all of them though):

PAN card
Voter’s ID
Ration card
Driver’s license
Photo credit card
Employee ID card

RCET, BHILAI, MBA 2009-2011

 ICICI Demat services

ICICI – Transacting and investing simplified. Get ready to change the way you transact and
invest in financial products and services. Whether you wish to transact in equity, equity &
commodity derivatives, IPO’s offshore investments or prefer to invest in mutual funds, life &
general insurance products or avail money transfer and money changing services, you can do it
all through Angel. Simply open a Angel account and enjoy the convenience of handling all your
key financial transactions through this one window.

Benefits
• It’s cost effective
You pay comparatively lower transaction fees. As an Introductory offer, we invite you to pay a
flat fee of just Rs. 750/- and transact through Angel.
• Its offers single
Through Angel’s associates, you can transact in equity, equity and commodities derivatives,
offshore investments mutual funds, IPO’s life insurance, general insurance, money transfer,
money changing and credit cards, amongst others.
• Its convenient
You can access Angel’s services through
The internet
Transaction kiosks
The phone (call & transact)
Our all – India network of associates on an assisted trade.

RCET, BHILAI, MBA 2009-2011

 Benefits of Demat Account

 A safe and convenient way to hold securities;

 Immediate transfer of securities;

 No stamp duty on transfer of securities;

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

 Reduction in paperwork involved in transfer of securities;

 Reduction in transaction cost;

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

 Nomination facility;

RCET, BHILAI, MBA 2009-2011

Delivery trading

In Intraday trading you buy and sell the same day without actually getting the shares in your
account. Delivery based trading means that you actually get the stocks you buy and then can sell
whenever you want to.

Day trading

Refers to the practice of buying and selling financial instruments within the same trading day
such that all positions are usually closed before the market close for the trading day. Traders that
participate in day trading are called active traders or day traders. Some of the more commonly
day-traded financial instruments are stocks, stock options, currencies, and a host of futures
contracts such as equity index futures, interest rate futures, and commodity futures.

Margin plus

Margin PLUS offers an order placement feature through which you can take an intra-day
position in the equity segment and at the same time, place a cover order for this position
specifying the Stop Loss Trigger Price and the limit price. This cover order will help you to limit
the loss, if any, on the position. 

How does Margin Plus work?

At the time of taking a position in Margin Plus, you would also be required to specify a Stop
Loss Order, and hence limiting your loss to that extent. Since the risk is now limited to the
difference between your Buy/Sell rate and the Limit price, margin will be primarily based on this
difference.

RCET, BHILAI, MBA 2009-2011

Features

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

Derivatives

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

two people or two parties - that has a value determined by the price of something else (called the
underlying). It is a financial contract with a value linked to the expected future price movements
of the asset it is linked to - such as a share or a currency. There are many kinds of derivatives,
with the most notable being swaps, futures, and options. However, since a derivative can be
placed on any sort of security, the scope of all derivatives possible is nearly endless. Thus, the
real definition of a derivative is an agreement between two parties that is contingent on a future
outcome of the underlying.

Mutual funds

is a professionally managed type of collective investment scheme that pools money from many
investors and invests typically in investment securities (stocks, bonds, short-term money market
instruments, other mutual funds, other securities, and/or commodities such as precious metals).
The mutual fund will have a fund manager that trades (buys and sells) the fund's investments in
accordance with the fund's investment objective. In the U.S., a fund registered with the Securities
and Exchange Commission (SEC) under both SEC and Internal Revenue Service (IRS) rules
must distribute nearly all of its net income and net realized gains from the sale of securities (if
any) to its investors at least annually.

RCET, BHILAI, MBA 2009-2011

Initial public offense

referred to simply as an "offering" or "flotation," is when a company (called the issuer) issues
common stock or shares to the public for the first time. They are often issued by smaller,
younger companies seeking capital to expand, but can also be done by large privately-owned
companies looking to become publicly traded. An IPO can be a risky investment. For the
individual investor it is tough to predict what the stock or shares will do on its initial day of
trading and in the near future since there is often little historical data with which to analyze the
company

RCET, BHILAI, MBA 2009-2011

 2.3 DEMATERIALIZATION AND REMATERIALIZATION

How To Dematerialize Your Shares

To dematerialize your share certificates you have to:

 Fill up a dematerialization request form, which is available with your DP;

 Submit your share certificates along with the form; (write "surrendered for demat" on the
face of the certificate before submitting it for demat)
 Receive credit for the dematerialized shares into your account in 15 days.

Dematerialized shares do not have any distinctive or certificate numbers. These shares are
fungible - which means that 100 shares of a security are the same as any other 100 shares of that
security.

The investor can dematerialize only those certificates that are already registered in his name and
belong to the list of securities admitted for Dematerialization at NSDL. Shares held in street
name (market deliveries) cannot be dematerialized. If the share certificates that investor wants to
dematerialize do not belong to the list of securities eligible for Dematerialization specified by
NSDL, he can approach the company and request them to sign up with NSDL to make their
securities available for Dematerialization. Odd lot share certificates can also be dematerialized.

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

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

It is compulsory to mention the ISIN number of the company while filling up the Demat
Request form. This, to a certain extent, ensures that the security mentioned in the Demat Request
Form is the same as the one the investor intends to dematerialize. However, the investor need not
remember cryptic numbers and can take the help of his DP in filling these forms.

Dematerialization is not compulsory. According to the Depositories Act, 1996, an investor has
the option to hold shares either in physical or in dematerialized form. An investor can hold part
RCET, BHILAI, MBA 2009-2011
of his holdings in demat form and part of his holdings in the form of share certificates for the
same security.

Although the depository would be a registered owner of securities in the depository, a transaction
involving dematerialized securities would not be considered as benami transactions, the Benami
Transactions (Prohibition) Act, 1988 have been suitably modified to exclude the securities held
by a:

 Depository as a registered owner

 DP as an agent of the depository.

 Securities bearing the same distinctive numbers as demat securities can still float in the market.
It is a case of forged certificates and normal procedures that are being followed in the physical
market will be used to weed them out. The concerned stock exchanges where the securities are
listed are informed of the details of securities dematerialized and rematerialized. An investor can
dematerialize shares that are pledged with a bank, which is a DP as well.

How To Rematerialize Your Shares.

During a rematerialization process, the request goes from the DP to the R&T agent via NSDL.
The R&T Agent, after processing the request, will print and dispatch the share certificate directly
to you. No transfer duty will be charged to you when you rematerialize your shares. You have
the option of rematerializing your total holdings or part of it. In addition to this, you have the
option to get the certificates in market lot or jumbo lot.

If your name has been wrongly spelt on the certificates given to you after a remat, you can send
it for rectification to the R&T agent along with the relevant documents

RCET, BHILAI, MBA 2009-2011

 CHAPTER 3

RESEARCH METHODOLOGY

RCET, BHILAI, MBA 2009-2011

 INTRODUCTION

Today’s changing dynamic field, a functional area of management of increasingly important as

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

“Research is a systematic and objective for analysis of information relevant to the identification
and solution of any problem in any field.”

According to M. Stephenson
“ The manipulation of things, concept or symbols for the purpose of generalizing to extend,
correct or verify knowledge, whether that knowledge aids in construction of theory or in the
practice of an art.”

According to Clifford Woody

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

Research inculcates scientific and inductive thinking and it promotes the development of logical
habits of thinking and organization. The role of research in several fields of applied economics,
whether related to business or to the economy as a whole, has greatly increased in modern times.
Research has its special significance in solving various operational and planning problems of
business and industry. Research is equally important for social scientists in studying social
relationships and in seeking answers to various social problem

RCET, BHILAI, MBA 2009-2011

 DESIGN OF WORKING METHODOLOGY

“A research design is the arrangement of conditions for collection analysis of data in a manner
that aims to combine relevance to the research purpose with economy in procedure”.

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

Exploratory research studies are also termed as formulating research studies. The major
emphasis in such studies is on the discovery of ideas in sights. Descriptive research studies are
those studies, which are concerned with describing the characteristics of a particular individual,
or a group.

RCET, BHILAI, MBA 2009-2011

A detailed survey of consumers was carried out to find out their preferences for DEMAT A/C the
details of the methodology are stated below:

Type of research Descriptive

Research question Consumer perception for DEMAT
A/C
Sampling technique Convenience sampling

Sample size 100

Sampling area Bhilai
Primary data Response through questionnaires,
personal interviews
Secondary data Through internet, references from
library

RCET, BHILAI, MBA 2009-2011

 CHAPTER 4

DATA ANALYSIS AND

INTERPRETATION

Q 1. Are you interested in investment?

RCET, BHILAI, MBA 2009-2011

 30

YES
NO

70

Out of 100 respondents 70 peoples are interested in investment. and other are simply save their
money.
Interested in investment Yes No
No of Respondents 70 30

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

RCET, BHILAI, MBA 2009-2011

 3.2

YES
NO

70

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

Know about demat a/c Yes No

No of Respondents 70 30

Q3. Do you have DEMAT account?

RCET, BHILAI, MBA 2009-2011

 60
60

50

40

30

Out of
20
10 70
10

0
Yes No

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

Do you have DEMAT a/c Yes No

No of Respondents 60 10

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

A) ICICI.
B) Other Company

RCET, BHILAI, MBA 2009-2011

 45
40
35
30
45
25
20
15
15
10
5
0
ICICI others

Name of company or bank where they ICICI BANK Other company

have their DEMAT Account.
No of respondents 45 15

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

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

RCET, BHILAI, MBA 2009-2011

 25

YES
NO
3rd Qtr

45

45 persons think that securities will be safe in Demat a/c’s than any other place as it is totally a
paper less work and there is no case of misplace of it.

Do you think that securities are safe in ICICI BANK Other company
DEMAT A/C
No of respondents 45 25

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

RCET, BHILAI, MBA 2009-2011

 A) Current Market position B) Goodwill/Brand name
C) Future prospects E) Facilities

Opening of account
17
22

market position
goodwill
Future prospectus
Facilities

12 14

Factors Market Positions Goodwill/ Future facilities

brand name prospectus
Opening of 17 14 12 22
account

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

RCET, BHILAI, MBA 2009-2011

 30
30
25 20
20 15 In
15
10 5
5
0
es th e t
iti om ke
r r ow c ar
cu g in ym
g se ey ble ar
n
ell
in m
o sta ir m
s st d p
sy f a an in
ea n rn se
si ea ch
a
le p n r
h si pu
le p
h

many persons point of view Demat a/c is generally for two major thinks i.e. they are for easy in
selling securities and helps in earn income & also grow money, as both are scoring equal number
of response. Other also thinks that it helps in purchase in primary market and helps in earn a
stable income.

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

RCET, BHILAI, MBA 2009-2011

 5

40
.

Do you satisfied with DEMAT A/C YES NO

and continue with it.
No of respondents 40 5

OBSERVATION METHOD:-
The observation method is commonly used method especially in studies related to behavioral
science. Observation becomes a scientific tool and the method of data collection for the
researcher when it serves a formulated research purpose is systematically planned & recorded.

RCET, BHILAI, MBA 2009-2011

 In this research I made questionnaires for analysis of data and by the help of this data I put
observation method to come to a conclusion.

OBSERVATION TABLE:-

Know about DEMAT a/c YES NO

No of respondents 70 30

Do you have DEMAT a/c YES NO

No of respondents 70 30

Name of company or bank where they ICICI BANK Other company

have their DEMAT Account.
No of respondents 45 15

Views of Easy selling Helps in fast Helps in earn and Purchase in

DEMAT a/c is securities money growth stable income primary market
for
No of 15 30 20 5
respondents

Securities is safe in demat a/c YES NO

on ICICI
No. of respondents 45 25
Factors Market Positions Goodwill/ Future facilities

RCET, BHILAI, MBA 2009-2011

 brand name prospectus
Opening of 17 14 12 22
account

Are u satisfied with DEMAT YES NO

a/c and want two continue
with it.
No of respondents 40 5

By the observation method analyzed data’s have given helped to clear that most of the people
likes the ICICI & want to invest in it. So we can conclude that THE PERCEPTION LEVEL OF
CONSUMERS TOWARDS DEMAT ACCOUNT WITH ICICI is good & DEMAT ACCOUNT
service of ICICI is better than others.

CHAPTER 5

RCET, BHILAI, MBA 2009-2011

 FINDINGS

FINDINGS

 Out of 100 respondents 70% of them are know about demat a/c.
 Out of 100 respondents 70% of them are having demat a/c.
 Out of 70 respondents 32% of are having demat a/c in ICICI.
 Most of them are like demat a/c because it helps in fast money growth.

RCET, BHILAI, MBA 2009-2011

  Out of 70 respondents 32% peoples are think that there securities are safe in ICICI.
 Peoples open demat a/c in ICICI due to good market position of ICICI.
 All of them are satisfied with the services of ICICI.

CHAPTER 6

RCET, BHILAI, MBA 2009-2011

 CONCLUSION OF THE PROJECT

 Conclusion From Analysis

 Learnt From Analysis

CONCLUSION

A survey of the people has been conducted to know the PERCEPTION LEVEL OF
CONSUMERS TOWARDS DEMAT ACCOUNT OF ICICI.It is observed that over all people

RCET, BHILAI, MBA 2009-2011

like to have DMAT account in ICICI. The reason behind this is the services & brand. It is
concluded that most of people wants to open DEMAT Account in ICICI.

LEARNT FROM ANALYSIS

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

MERITS:

a) Safe for securities.

From my 8 weeks training and analysis I have found that securities will be safe in Demat a/c’s.
As by keeping securities in such a/c’s investors does not have to bother about their securities
selling and also there is no chances of loss of certificates.

b) Easy in selling securities.

Through training I have got a result that Demat a/c helps in selling securities of investors more
easily than any other sources. When a n investor keeps its share in a Demat a/c then its banks
responsibility to sell that security on the action of investor.

c) Fast money growth.

In a Demat a/c, money invested on shares / warrants by an investor grows, if it is used by him
frequently as per the norms of share market.

d) Purchase in primary market.

Basically Demat services doesn’t provide services of purchasing shares through it, accept the
shares will be purchased in primary market, which helps investors.

e) Paperless work.

RCET, BHILAI, MBA 2009-2011

 Before facility given by banks to open a Demat a/c for keeping their shares in such a/c’s,
investors keep it as a share certificate which makes some time worry about loss of share
certificate. But through Demat a/c it is no more as in it there is no need of doing paper work.

Now, government has made it compulsory to do trading through Demat a/c only. This means
now any share/warrant can be sold only through Demat a/c’s.

DEMERITS:

a) More enquiries.

For opening a Demat a/c in bank, they require lots of information about an individual for which
they enquire more and more to them.

b) Charges applied.

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

c) Risky in terms of operation.

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

d) Technical in nature.

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

RCET, BHILAI, MBA 2009-2011

 e) Lack of basic awareness.

Due to its technicality the procedure of handling a Demat a/c creates many problems for an
investor. As it is new an investor it creates unawareness among them.

CHAPTER 7
RCET, BHILAI, MBA 2009-2011
 SUGGESTIONS

Suggestions
1. The Brand image of ICICI Ltd. is good in market but according to customer satisfaction the
company has to provide the better service. And also change the Market strategy.

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

RCET, BHILAI, MBA 2009-2011

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

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

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

RCET, BHILAI, MBA 2009-2011

 CHAPTER 8

QUESTIONNAIRE

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 Name: ____________________________________
Occupation:______________________________________________

Questionnaire for Awareness of DEMAT a/c

Quo.1: Are you interested in investment?

(a) Yes
(b) No

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

(a) Yes
(b) no
Quo.3: do you have DEMAT A/C?
(a) Yes
(b) No
Quo.4: If yes than where they have DEMAT a/c?
(a) ICICI
(b) Other
Quo.5 : What are the factors that you consider before open demat a/c in ICICI?
(a) Market positions
(b) Goodwill/Brand name
(c) Future prospectus

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 (d) Facilities

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

(a) Yes
(b) No

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

(a) Yes
(b) No

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

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

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

(a) Yes
(b) No

Quo.10: How frequently you are going to use your DEMAT a/c?
(a) Daily
(b) Weekly
(c) Fortnightly
(d) Monthly

RCET, BHILAI, MBA 2009-2011

 CHAPTER 9

BIBLIOGRAPHY

RCET, BHILAI, MBA 2009-2011

 SOURCES OF INFORMATION

 Books:

 Bhalla V. K., Investment Management, S.Chand.

 Magazines:

 Intelligent Investor issue dated June 2, 1999: Finding the right DP- Rajesh Gajra.

 Intelligent Investor issue dated Feb 10, 1999. My byte is stolen-Rajesh Gajra.

 ICICI bank personal Demat services booklet.

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

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

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

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

 http://www.idbibank/demat account.com. date : 30tth June .2006.

 http://www.nsdl.com, date: 5th July.2006.

RCET, BHILAI, MBA 2009-2011