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DEPARTMENT OF BBA
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CERTIFICATE
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I wish her all success in life.
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(Signature) a
Mr. PRAMESH GOUTAM
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H.O.D d
BBA tu
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Contents:
SR.N PARTICULARS PAGE
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1 Cover Page 1
2 Declaration 2
5 Acknowledgement 5
1 INTRODUCTION
m 8-24
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1.1 General Introduction about the 8
1.2 Industry Profile a 14-24
1.3
industry a
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a. Origin and development of the 14
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INTRODUCTION
FINANCIAL SECTOR
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organized and conventional that is also recognized as unofficial finance
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market. Fiscal transactions in an organized industry are executed by a
c
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number of financial organizations which are commercial in nature and
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offer monetary services to the society. Further classification includes
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banking and non-banking enterprises, often recognized as activities
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that are client specific.
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The chief controller of the finance in India is the Reserve Bank of India
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(RBI) and is regarded as the supreme organization in the fiscal
structure. Other significant fiscal organizations are business banks,
domestic rural banks, cooperative banks and development banks. Non-
banking fiscal organizations entail credit and charter firms and other
organizations like Unit Trust of India, Provident Funds, Life Insurance
Corporation, mutual funds, GIC, etc.
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organizations that deal with the management of money. Among
these d
organizations are credit unions, banks, credit
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card companies, insurance companies, consumer
S stock brokerages, investment funds and
finance companies,
some government sponsored enterprises. As of 2004, the financial
services industry represented 20% of the market capitalization of
the S&P 500 in the United States.
Banks:-
Banking services
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Allow financial transactions at branches or by using Automatic
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Teller Machines (ATMs)
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services firms require a person or family to have a certain
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minimum net worth to qualify for private banking services.
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[3]
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Private banks often provide more personal services, such as
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wealth management and tax planning, than normal retail
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banks.
a
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Capital market bank - bank that underwrite debt and equity,
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tu fees),
assist company deals (advisory services, underwriting and
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advisory and restructure debt into structured
finance products.
Bank cards - include both credit cards and debit cards. Bank
Of America is the largest issuer of bank cards.
Investment services
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Asset management - the term usually
.c given to describe
a funds. Also refers to
companies which run collective investment
m registered with the Securities
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services provided by others, generally
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and Exchange Commission as Registered Investment Advisors.
Hedge fund d
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management - Hedge funds often employ the
services oft"prime brokerage" divisions at major investment banks
S their trades.
to execute
Insurance:-
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stock brokers (private client services) and discount brokers. Stock
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brokers assist investors in buying or selling shares. Primarily
internet-based
y n are often referred to as discount
companies
d
brokerages, although many now have branch offices to assist
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angel groups or angel networks to share research and pool their
investment capital.
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Conglomerates - A financial a
services conglomerate is a
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a
financial services firm that is active in more than one sector of the
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financial services market e.g. life insurance, general insurance,
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health insurance, asset management, retail banking, wholesale
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banking, investment banking, etc. A key rationale for the existence
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of such businesses is the existence of diversification benefits that
are present when different types of businesses are aggregated i.e.
bad things don't always happen at the same time. As a
consequence, economic capital for a conglomerate is usually
substantially less than economic capital is for the sum of its parts.
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INDUSTRYPROFILE:
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One of the major economic developments of this decade has been the recent takeoff
of India, with growth rates averaging in excess of 8% for the last four years, a stock
In 2006, total equity issuance reached $19.2bn in India, up 22 per cent.
market that has risen over three-fold in as many years with a rising inflow of foreign
investment Merger and acquisition volume was a record $27.8bn, up 38 per cent, driven
by a 371 percent increase in outbound acquisitions exceeding for the first time inbound
deal volumes. Debt issuance reached an all-time high of $13.7bn, up 28 per cent from a
year earlier. Indian companies were also among the world's most active issuers of
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depositary receipts in the first half of 2006, accounting for one in three new issues
globally, according to the Bank of New York.
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The questions and challenges that India faces in the first decade of the
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new millennium are therefore fundamentally different from those that it has wrestled
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with for decades after independence. Liberalization and globalization have breathed
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new life into the foreign exchange markets while simultaneously besetting them with
tufrom scratch to attain scale and attention. The banking industry has
practically started
moved S from an era of rigid controls and government interference to a more market-
governed system. New private banks have made their presence felt in a very strong
way and several foreign banks have entered the country. Over the years, microfinance
has emerged as an important element of the Indian financial system increasing its
outreach and providing much-needed financial services to millions of poor Indian
households.
c Exchange
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it compares the two major Indian exchanges, the Bombay Stock
m
total deposits) at an average annual growth rate of 18%. There are about 100 commercial
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banks in operation with 30 of them state owned, 30 private sector banks and the rest 40
foreign banks. Still dominated by state-owned banks (they c
.account for over 80% of
aseen the emergence of new
deposits and assets), the years since liberalization have
mnew foreign banks. This has resulted
a than in other emerging economies
private sector banks as well as the entry of several
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Herfindahl index (a measure
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28% and about 20% respectively between 1991-1992 and 2000-2001 (Koeva 2003).
Within a decade of its formation, a private bank, the ICICI Bank has become the second
largest in India.
Compared to most Asian countries the Indian banking system has done better in
managing its NPL problem. The “healthy” status of the Indian banking system is in part
due to its high standards in selecting borrowers (in fact, many firms complained about the
stringent standards and lack of sufficient funding), though there is some concern about
“ever-greening” of loans to avoid being categorized as NPLs. In terms of profitability,
Indian banks have also performed well compared to the banking sector in other Asian
economies, as the returns to bank assets and equity.
Private banks are today increasingly displacing nationalized banks from their
positions of pre-eminence. Though the nationalized State Bank of India (SBI) remains the
largest bank in the country by far, new private banks like ICICI Bank, UTI Bank
(recently renamed Axis Bank) and HDFC Bank have emerged as important players in the
retail banking sector. Though spawned by government-backed financial institutions in
each case, they are profit-driven professional enterprises. The proportion of non-
performing assets (NPAs) in the loan portfolios of the banks is one of the best indicators
of the health of the banking sector, which, in turn, is
central to the economic health of the nation the distribution of NPAs in the different
segments of the Indian banking sector for the last few years. Clearly the foreign banks
have the healthiest portfolios and the nationalized banks the worst, but the downward
trend across the board is indeed a positive feature. Also, while there is still room for
improvement, the overall ratios are far from alarming particularly when compared to
some other Asian countries.
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While the banking sector has undergone several changes, equity markets have
experienced tumultuous times as well. There is no doubtc
. that the post-reforms era has
witnessed considerably higher average stock market areturns in general as compared to
before. .Since the beginning of the reforms,m“equity culture” has spread across the
a This trend is clearly visible which shows the
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country to an extent more than ever before.
ratio of BSE market capitalization to the GDP. Although GDP itself has risen faster than
d in equity markets has been significantly higher. The rise in
stock prices (andt
u
before, the long-term growth
the associated drop in cost of equity) has been accompanied by a boom
Sraised through new issues – both stocks as well as debentures – beginning
in the amounts
with the reforms and continuing at a high level for over half a decade The ride has not
been smooth all along though. At least two major bubbles have rocked the Indian stock
markets since liberalization. The first, coinciding with the initial reforms, raised questions
about the reliability of the equity market institutions. A joint parliamentary committee
investigation and major media attention notwithstanding another crisis hit the bourses in
1998 and yet again in 2001. Clearly several institutional problems have played an
important role in these recurring crises and they are being fixed in a reactive rather than
pro-active manner. Appropriate monitoring of the bourses remains a thorny issue and foul
play, a feature that is far from absent even in developed countries, is, unfortunately, still
common in India. Consequently, every steep rise in stock values today instills foreboding
in some minds about a possible reversal. Nevertheless, institutions have doubtless
improved and become more transparent over the period. The time-honored “badla”
system of rolling settlements is now gone and derivatives have firmly established
themselves on the Indian scene. Indeed the introduction and rapid growth of equity
derivatives have been one of the defining changes in the Indian financial sector since
liberalization. Notwithstanding considerable resistance from traditional brokers in Indian
exchanges, futures and options trading began in India at the turn of the centuries. The
rapid growth in the turnover in the NSE derivatives market broken down into different
instrument-types. Evidently futures – both on individual stocks as well as index futures –
have been more popular than options, but the overall growth in less than half a decade
has been phenomenal indeed. Tradable interest rate futures have made their appearance as
well but their trading volume has been negligible and sporadic. Nevertheless, the fixed-
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income derivatives section has witnessed considerable growth as well with Interest Rate
The Financial Sector Development Project aims to foster greater market orientation,
allocative efficiency, technical competence and competition in India's financial system
and contribute to meeting the long-term financing needs of its investors as a means of
stimulating economic growth. It will assist the Government of India to sustain financial
liberalization, institutional development of public sector commercial banks and
integration into the global capital markets. It will facilitate expansion of private equity
ownership in public sector commercial banks and development of term foreign currency
lending. The project comprises the following three components:
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c banks which commit
to plans for increasing private equity through a
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1) capital restructuring to support selected nationalized commercial
public offerings and modernization
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by capital adequacy norms.
3) The backstop facility component will assist eligible Indian banks and financial
institutions in India to source private funds to meet rapidly expanding demand for foreign
currency term loans. It will assist in meeting such demand from small- and medium-sized
companies with foreign exchange earnings and exporters whose direct access to offshore
markets is hampered by high issue cost, the facility will provide a medium-term liquidity
assurance at a market-related price to financial institutions by offering them the option to
borrow funds from the facility at a market-related price representing a market perception
of systemic disruption.
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financial market further was the nullification of the regulations
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restricting the growth of the financial sector in India. To maintain such
a growth for a long term the ainflation has to come down further.
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The financial sectordin India had an overall growth of 15%, which has
tu over the last few years although several other
exhibited stability
markets S across the Asian region were going through a turmoil. The
development of the system pertaining to the financial sector was the
key to the growth of the same. With the opening of the financial market
variety of products and services were introduced to suit the need of
the customer. The Reserve Bank of India (RBI) played a dynamic role in
the growth of the financial sector of India.
The growth of financial sector in India was due to the development in sectors
Growth of the banking sector in India
The banking system in India is the most extensive. The total asset
value of the entire banking sector in India is nearly US$ 270 billion. The
total deposits is nearly US$ 220 billion. Banking sector in India has
been transformed completely. Presently the latest inclusions such as
Internet banking and Core banking have made banking operations
more user friendly and easy
.
The ratio of the transaction was increased with the share ratio
and deposit system
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The removal of the pliable but ill-used forward trading mechanism
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The introduction of infotech systems in the National Stock
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Exchange (NSE) in order to cater to the various investors in
different locations
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Privatization of stock exchanges
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Growth in the Insurance sector in India
With the opening of the market, foreign and private Indian players are keen to convert
untapped market potential into opportunities by providing tailor-made products.
The insurance market is filled up with new players which has led to the introduction of
several innovative insurance based products, value add-ons, and services. Many
foreign companies have also entered the arena such as Tokyo Marine, Aviva, Allianz,
Lombard General, AMP, New York Life, Standard Life, AIG, and Sun Life.
The competition among the companies has led to aggressive marketing, and
distribution techniques.
The active part of the Insurance Regulatory and Development Authority (IRDA) as a
regulatory body has
The venture capital sector in India is one of the most active in the financial
sector inspite of the hindrances by the external set up.
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FUTURE OF FINANCE SECTOR:-
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The financial sector hasdwitnessed changes in many respects. Banking has seen many
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changes in the last two decades, as has the mutual fund business. During the first three
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decades after independence, the financial sector and changes in it were largely dominated
by SBI, IDBI, IFCI, UTI, ICICI, and LIC but the last two decades saw a significant
contribution by many other players, smaller in size, but faster on their feet. Each one of
these large players was created with very specific mandates, but with sector-wide
responsibilities. For example formation of SBI was the result of the Rural Credit Survey
Committee recommendation to create an entity that among other things, would help the
government in stimulating banking in the entire country. Similarly, the UTI was created
in 1964 with the explicit objective of stimulating investment in the stock market. In other
words, these organizations were created with specific purposes and a vision for the future.
They have significantly served the purposes that drove them all these years, and delivered
on the agenda set for them. The present day financial sector has been built on the
achievements of these organizations. However, in the last few years, we see organisations
like SBI and UTI endeavoring to compete with every player in the market. As a
consequence, these organisations are trying to become everything to everybody. The
negative image associated with a public enterprise has only added to their attempt to
emulate private enterprise behavior. Survival has become the objective of these pioneers.
In sum, these organisations are fast losing their initial identity without gaining a new one!
These organisations are trying to respond by tinkering with their organisation design or
by changing the ownership pattern. Such interventions are likely to be inappropriate
given the status of these organisations. A comprehensive relook at the existence of these
organisations is an imperative. They will have to introspect on their relevance in the
present context. For example, SBI will have to contemplate on the role it can play in the
market given the state of the market today and a desirable state in the future. Similarly,
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UTI may have to examine its role in the mutual fund sector.
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Organisations, which have played defining roles in economies, have often found
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themselves at such crossroads because they reach there first. The genius of the
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organisation is in identifying the moment as such and in reinventing itself to play a
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similar pivotal role again although in a different context. AT&T was one such
organisation, which duringdthe early seventies went through an elaborate exercise of
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reinventing itself for the future state of communications business that it envisioned. The
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task was not just about being prepared for the future but about preparing to shape the
future of the industry. The major players of the financial markets in India will have to do
something similar; they need to envision the desirable future state of the market and
define their role in shaping the future. This would mean playing a pioneering role once
again in a new context; any other role would probably be insignificant for these
organisations. The finance ministry as the de facto owner of these organisations needs to
encourage their managements to undertake this critical task immediately.
PROFILE OF THE ORGANISATION :-
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 was also among the
first Indian companies to raise funds from international markets. m
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.c Finance Corporation.
1967 - ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed.
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1977 - ICICI sponsors the formation of Housing Development
& Managed its first equity public issue.
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a in the Swiss Capital Market.
1986 - First Indian Institution to receive ADB Loans
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- The first public issue by any Indian equity
(75 million Swiss Franc)
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- Along with UTI sets uup Credit Rating Information Services of India Limited.
1994- ICICI S sets up ICICI Bank.
1997 - The name "The Industrial Credit and Investment Corporation of India
Limited " was changed to "ICICI Limited".
2001- ICICI Ltd and ICICI Bank were Merged.
2002 – Merger of ICICI Limited, ICICI Capital Services Ltd and ICICI Personal
Financial Services Limited with ICICI Bank.– “A Reverse Merger”.
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ICICI Bank is India's second-largest bank with total assets of Rs. 3,793.01 billion (US$
o
75 billion) at March 31, 2009 and profit after tax Rs. 37.58 billion for the year ended
cand about 4,721 ATMs in
March 31, 2009. The Bank has a network of 1,451 branches
.
India and presence ain 18 countries.
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a is a 74:26 joint venture with Prudential plc
(UK). It is the largest privatey
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ICICI Prudential Life Insurance Company
sector life insurance company offering a comprehensive
d products. It is also the pioneer in launching innovative
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suite of life, health and pensions
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health care products like Diabetes Care Active and health Saver.The company operates on
a multi-channel platform and has a distribution strength of over 2,76,000 financial
advisors operating from more than 2000 branches spread across 1800 locations across the
country. In addition to the agency force, it also has tie-ups with various banks, corporate
agents and brokers. In fiscal 2009, ICICI Prudential attained a market share of 10.9%
based on retail weighted premium and garnered a total premium of Rs 153.56 billion
registering a growth of 13% and held assets of Rs. 327.88 billion as on March 31, 2009.
ICICI Lombard General Insurance Company, a joint venture with the Canada based
Fairfax Financial Holdings, is the largest private sector general insurance company. It has
a comprehensive product portfolio catering to all corporate and retail insurance needs and
is present in over 300 locations across the country. ICICI Lombard General Insurance has
achieved a market share of 27.2% among private sector general insurance companies and
an overall market share of 11.2% during fiscal 2009. The gross return premium grew by
2.2% from Rs. 33.45 billion in fiscal 2008 to 34.20 billion in fiscal 2009.
ICICI Securities Ltd is the largest equity house in the country providing end-to-end
solutions (including web-based services) through the largest non-banking distribution
channel so as to fulfill all the diverse needs of retail and corporate customers. ICICI
Securities (I-Sec) has a dominant position in its core segments of its operations -
Corporate Finance including Equity Capital Markets Advisory Services, Institutional
Equities, Retail and Financial Product Distribution.
ICICI Securities Primary Dealership Limited is the largest Primary Dealer in Government
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Securities. It is an acknowledged leader in the Indian fixed income and money markets,
with a strong franchise across the spectrum of interestc
. rate products and services -
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research. One of the first entities to be granted Primary Dealership license by RBI, I-Sec
PD has made pioneering contributionsa
ywith
India. I-Sec PD is also credited
npioneering debt market research in India. I-Sec PD
since inception to debt market development in
ICICI Prudential Asset Management is the third largest mutual fund with average asset
under management of Rs. 514.33 billion and a market share of 10.43% as on March 31,
2009. The Company manages a comprehensive range of mutual fund schemes and
portfolio management services to meet the varying investment needs of its investors
through162 branches and 185 CAMS official point of transaction acceptance spread
across the country.
ICICI Venture is one of the largest and most successful private equity firms in India with
funds under management in excess of USD 2 billion. ICICI Venture, over the years has
built an enviable portfolio of companies across sectors including Life Sciences,
Information Technology, Media, Manufacturing, Retail, Financial Services, and Real
Estate thereby building sustainable value. It has several “firsts” to its credit in the Indian
Private Equity industry. Amongst them are India’s first leveraged buyout (Infomedia), the
first real estate investment (Cyber Gateway), the first mezzanine financing for a
acquisition (Arch Pharmalabs), the first ‘royalty-based’ structured deal in Pharma
Research & Development (Dr Reddy’s Laboratories - JV) and the first fund level
secondar transaction (Collar Capital)
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Even as the European and American stock markets reckon with the changes brought
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about by the Internet and IT/telecom advances, the Indian stock market has quickly
.
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moved to global standards.
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The sheer breadth of the changes since the National Stock Exchange started
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operations in 1994 and with the Securities and Exchange Board of India (SEBI) also
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driving the changes in the market system, have enabled the Indian market to move well
ahead in just five years. d
tEvenuas online automated trading and better clearing and settlement
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mechanisms have been put in place, perhaps, the most significant change in the Indian
market has been the coming of paperless trading; it may well be a precursor to the next
big changes – rolling settlements and Internet trading. But the push towards paperless
trading stands out even in a decade when the market landscape has changed beyond
recognition.
But the depository concept did not gain popularity; the FIIs
which had clamored for its introduction, now ignored it. The reason: Lack of liquidity.
But, unless the institutional investors stepped in, there could be no liquidity. This
stalemate frustrated the push for a paperless environment.
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dematerialized, the concept of dematerialization can be said to have taken roots. If the
regulatory direction is any indication, more paper will be flushed out of the system in the
next two years.
With a high degree of dematerialization a reality, the stage is set for rolling settlements
and web-based trading. Once these are in place, the Indian market will have moved closer
to the standards in advanced markets, such as the US. And paperless trading may well be
the catalyst for such a rapid advancement.
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corporate-related events. Other, equally significant, specific topics of a micro-nature will
be published through the year.
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mof shareholding and the depository mode
The dematerialized form
of trade (scrip less trade) have been ina
15 years. In India, the firsty
n operation in developed financial markets for over
depository commenced operation a decade back and is
dfinancial market is in need of both scrip-based and scrip less
tu community, which is used scrip-based trade, is bound to take
relatively new. The Indian
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trade, but the investing
some time to accept the latter. The scrip less trading, till now a domain of the western
world, institutional investors and GDR holders is now mandatory even for small
investors. All those who hold physical share certificates have to get them dematerialized.
If they do not, they will be forced to do so at the time of sale.
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After a constant expansion of the number of subsidiaries in the last five years, the
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leading financial institution has announced its plans of restructuring. Things are
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moving fast at the Bandra-Kurla complex of ICICI. Also, after substantially
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diluting its stake in the ICICI Bank, the group is also planning for a reverse
merger.
Exponential growth
The Industrial Credit and Investment Corporation of India limited founded way
back in 1955, has witnessed more than it could have dreamed of at the time of its
inception. However, following the economic liberalization of Indian economy, it
has renamed itself as ICICI. The principal objective behind setting up this
organization at that time was to make available long-term capital for industrial
development and investment in India. Gopalan Ramachandran, Chief executive,
Business Economics and Risk Management says, "Considering the fact that it was
established at a time when India had a stock market but not a reliable capital
market to supply long-term debt and equity, the growth of ICICI is wonderful."
Not only did the institution withstand the test of time but also witnessed
exponential growth that anybody can ever imagine. Under its group umbrella,
ICICI has around 27 subsidiaries. Of course, the most prominent and most
successful among them is the ICICI bank. One observer puts the constant increase
in the number of subsidiaries as part of their decentralization strategy.
The major reason for the exponential growth of ICICI is due to its willingness to
adapt itself to changes. It is the first one to start Internet banking. Also it has been
the first ever institution to start a web based securities trading through its
subsidiary ICICI Web Trade Ltd. Says Gopalan Ramachandran, "ICICI is a
financial institution that has seldom resisted change. It has been an ardent
promoter of internal and external change." Truly, it has been the best in the
business to adopt to the changes in the environment. And what more can it ask for
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from its employees who were most willing to adopt new things. And all this is due
to the comfort provided by the subsidiaries identifies c
. an industry observer.
1."As ICICI has transformed its business from a development financial institution
to a diversified financial service group offering a wide variety of products and
services it required various subsidiaries to handle particular activities." Justifying
the reason behind the floating of the subsidiaries and their contribution to the
overall success he adds, "These subsidiaries helped in focusing on their specific
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areas of operation and facilitated attention to their specific customer segments and
activities."
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2. Subsidiaries enable special managerial talent to deploy cutting-edge
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technologies. The internalisation of risk and reward in subsidiaries is a potent
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impetus for the growth of the ICICI group
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3. . "ICICI has empowered managers to try new techniques, technologies and
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process and above all, to establish new beachheads for exploitation in the future,"
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4. , "The retail subsidiaries have hitherto focused on their specific areas of
operation in order to facilitate rapid time to market and dedicate attention to their
customer segments and channels."
More than 1,30,000 persons, including NRIs in the Gulf, who trade in shares listed on the
NSE, are registered with the site, which is India’s largest and worlds tenth share-trading
portal. The site was launched last April by ICICI Web Trade Ltd, a fully-owned subsidiary of
ICICI. Around 15,000 people trade via ICICIdirect.com every day. The unique three-in-one
trading account of the site offers a hassle-free and seamless trading experience for the
customer. The customers bank, demat and broking accounts are linked automatically. All that
the customer needs to do is to just place the order of the chosen scrip and the desired price -
our system does the rest of the work.
Under the Spot facility, ICICI direct customers are given a daily limit of Rs 50,000. These
funds can be withdrawn at the end of the day and customers would not have to wait until the
payout day of the stock exchange to receive their funds for sales. This would increase the
liquidity for the customers and all S&P CNX Nifty and CNX Nifty Junior scrip’s would be
available on Spot.
Despite the existence of so many online share trading portals how could ICICI direct capture
65 per cent of the market share and emerge a front-runner. Another reason for the immense
popularity of the site is due to ICICIs countrywide network, which comprises 110 branches,
93 centre’s and 589 ATMs.
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➢ Direct Business Catalyst (DBC):
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A Direct Business Catalyst (DBC) is an entity which gets new clients for
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ICICI Direct and nurtures them by offering them the trade facility on phone. For all its
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effort it gets a fixed referral fee and trail commission.
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○ Role
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Acting as a facilitator between ICICI Direct and the end customer, he introduces a client
to ICICI Direct, getu
t for him on his behalf in clients account.
his I-direct account opened and subsequently on the request of the
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client he places orders
FUNCTIONAL DEPARTMENTS OF ICICI :-
Infrastructure financing, corporate financing and retail have been the strong pillars of
ICICI's growth. They expect these to remain thrust areas in the future too. The financial
institution sees significant opportunities in the power sector, and in the rapid de-
regulation of the Telecom sector. On the retail side, ICICI has established a retail
franchisee through a physical presence across 42 cities. Its retail thrust has been on the
planks of technology enabled low cost distribution channels like the Internet, Call centers
and ATMs.
It occupies the number one position in automobile financing (over 20% of the market
share), number one in credit cards on an incremental basis. It also has a growing presence
in home finance and on-line trading.
ICICI BANK
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ICICI Bank is a commercial banking outfit set up by the ICICI Group. The Bank was
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registered a banking company on January 5 , 1994 and received
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the Reserve Bank of India on May 17 , 1994. The Bank
m and paid-up capital is INR 165 crore
a branch was started in Madras in June 1994.
300crore (USD 75.96 million), of which subscribed
the international t
u through V-SAT (Satellite) technology. The Bank is connected to
S SWIFT network since March 1995. ICICI Bank offers a wide spectrum
of domestic and international banking services to facilitate trade, investment, cross-
border business, and treasury and foreign exchange services. This is in addition to a
whole range of deposit services offered to individuals and corporate bodies. ICICI Bank’s
Infinity was the first Internet banking service in the country, and a prelude to banking in
the next millennium. Currently the Bank has around 150,000 customers
With the recent spurt in entrepreneurship in the country, venture capital and private equity
capital financing are fast attaining a role of prominence. Uniquely positioned to take the
Indian entrepreneur further is ICICI Venture Funds, the wholly owned subsidiary of
ICICI, with its keen understanding of the Indian Financial Markets, entrepreneurial ethos,
access to global capital and a network through influential global alliances. Strong
parentage and affiliates provide ICICI Venture with access to a broad spectrum of
financial and analytical resources. An affiliation with (Trust Company of the West)
provides a platform for networking Indian Companies to global markets and technology.
ICICI Venture Funds currently manages / advises 11 Funds aggregating US$ 400 million,
making it the most significant private equity investor in the country. The investment
experience of ICICI Venture’s professionals is the foundation its strengths and success in
several areas of investing. ICICI Venture seeks to invest in opportunities where its
network through ICICI and TCW can create value for all involved. ICICI Venture’s
primary investment objective is capital investment through investments by way of equity
or equity-related securities in unlisted companies with significant growth potential. ICICI
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Venture’s investments span a broad spectrum of industries and stages of development, the
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investment focus being on
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1 Information Technology
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2 Biotechnology and Life Sciences
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Media and entertainment
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Retail Services
Formed in 1993 when ICICI’s Merchant Banking Division was spun off into a new
company, I-SEC today are India’s leading Investment Bank and one of the most
significant players in the Indian capital markets. Its client list includes some of the best
known, most respected names in Indian business and industry, and I-SEC offers them
what are probably the widest, most in-depth range of services in the market, with the
highest standards of professionalism. Backed by a strong distribution network, I-SEC is
acknowledged to be at the forefront of all new developments in the Indian debt market. I-
SEC Research Reports, Compendia, Updates, I-BEX and sovereign Bond Index, have
become industry standards, sought after by finance, business and reputed publications
alike. The Project Finance Group has helped take strategic projects from the drawing
board to financial closure, leveraging the expertise of parent organization. I-SEC has also
executed several assignments in M & A, including business valuations, spin-offs and
mergers, for both domestic and overseas clients. The range of products offered by i-SEC
includes:
Corporate Finance – Mergers and Acquisitions, Equity, Bidding (especially for Telecom
Projects)
Fixed Income – Primary Dealership, Debt Research
Equities – Lend management, Underwriting, Syndication, Private Equity placement,
Sales, Trading, Broking, Sectoral and Company Research I - SEC
Continues to sustain a steady rate of growth by offering the most extensive range of
services combined with unrivalled standards of professionalism.
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commenced its securities brokerage activities in February 1996 and is registered with the
Saving plans
Protection plans
Retirement plans
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company research etc. After the amalgamation
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1, 1996, resulting in the change of the name. The company is mandated, under review by
ICICI, to carry out u
t on its behalf the retail resource raising activities and to provide front
Srelated to all retail and semi retail liability products of ICICI. The
office services
company also operates the network of ICICI Centers being set up by ICICI. As on date
the company has set up 91 centers across the country.
ICICI INFOTECH
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ICICI DIRECT.COM (ONLINE SHARE TRADING):
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ICICI Direct.com is a truly online share-trading site. Which means that from the time
you punch in a buy u
t or sell trade on your computer to the final settlement in your account,
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everything happens completely online? The 3-in-1 e-invest account integrates your
brokerage, bank and one or more depository accounts to make sure that you can do the
otherwise cumbersome share trading from the comfort of your home or office, at
absolutely any time of the day or night
ORGANISATIONAL STRUCTURE:-
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PRODUCT AND SERVICE PROFILE OF THE ORGANISATION :-
Products:-
○ Trading in shares:
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.
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Margin Trading
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You can also do an intra-settlement trading upto 3 to 4 times your available funds,
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wherein you take long buy/ short sell positions in stocks with the intention of squaring off
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the position within the same day settlement cycle.
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.
Trading on NSE/BSE:
Through ICICIdirect.com, you can trade on NSE as well as BSE.
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Market Order:
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You could trade by placing market orders during market hours that allows you to
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trade at the best obtainable price in the market at the time of execution of the order.
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Limit Order:
S more favorable than the price, which is defined by you, limit orders can
be placed by you during holidays & nonmarket hours too.
DE-MAT:-
The dematerialized form of shareholding and the depository mode of trade (scrip less
trade) have been in operation in developed financial markets for over 15 years. In India,
the first depository commenced operations a decade back and is relatively new. The
Indian Financial Markets is in need of both scrip-based trade, but the investing
community, which is used to scrip-based and scrip less trade, is bound to take some time
to accept the latter. The scrip less trading, till now a domain of the western world,
institutional investors and GDR holders is now mandatory even for small investors. All
those who hold physical share certificates have to get them dematerialized. If they do not,
they will be forced to do so at the time of sale.
Offers services to clients dealing in Government securities through the SGL A/C.
besides holding the securities, ICICI Capital Services Ltd.Provides records update based
on the transactions made by the clients.Collects and credits the benefits and proceeds
from sale to the clients’ account; and Supplies periodical reports on the transactions and
holding of the clients.
TRADING:
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2.Investor instructs his Depository Participant to expect credit on settlement day. Broker
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instructs his DP to debit his Clearing Member account on settlement day.
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3.Before settlement day Broker makes payment to clearinghouse through Clearing Bank.
SELLING:
An investor gets order executed.
1.Investor instructs his Depository Participant to debit his account with immediate effect.
2.The shares move from investors account to Brokers Clearing Member account via
NSDL. A Broker clearing member accounts is credited.
3.Before settlement day broker transfers shares from his clearing member account to
Clearinghouse via NSDL. His account is debited.
4.On settlement day Broker receives payment from clearing house which he passes on to
the investor.
ICICIDirect.com
ICICIDirect.com is a truly online share-trading site. This means that from the time you
punch in a buy or sell trade on your computer to the final settlement in your account,
everything happens completely online. The 3-in-1 e-invest account integrates your
brokerage, bank and one or more depository accounts to make sure that you can do the
otherwise cumbersome share trading from the comfort of your home or office, at
absolutely any time of the day…or night.
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
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to serve as proof of identity (POI) and proof of address (POA) as specified by SEBI.
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Besides, production of PAN card in original at the time of opening of account has been
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made mandatory effective from April 01, 2006.
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All applicants should carry original documents for verification by an
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authorized official of the depository participant, under his signature.
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Further, the investor has to sign an agreement with DP in a depository prescribed
Further, SEBI has vide circular dated November 09, 2005 advised that
with effect from January 09, 2006, no charges shall be levied by a depository on DP and
consequently, by a DP on a Beneficiary Owner (BO) when a BO transfers all the
securities lying in his account to another branch of the same DP or to another DP of the
same depository or another depository, provided the BO Account/s at transferee DP and at
transferor DP are one and the same, i.e. identical in all respects. In case the BO Account
at transferor DP is a joint account, the BO Account at transferee DP should also be a joint
account in the same sequence of ownership.
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diverse but ICICI direct service is ok but the brokerage charges are touching sky.
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A unique 3-in-1 On-line Trading Account
a3-in-1
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Seamless, Secure and Integrated trading platform...
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Our 3-in-1 trading platform links your banking, trading and demat accounts, ensuring
unmatched
dconvenience for customers.
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With an ICICIdirect.com
Wide range of products
Share trading in both NSE and BSE, innovative offerings like - Margin, Margin Plus,
BTST, SPOT. Derivatives trading, overseas trading, mutual funds, IPOs and on-line life
insurance.
Control
You can be rest assured, that your order will be precisely for the amount you wanted it to
be, without any deviation, giving you full control of your money and your trades
Tracking and Review
Monitoring your investments is as important if not more than making that investment
itself. Our portfolio tracker and watch list along with SMS alerts will always keep you
updated on the status of your investments with us and act on them when required.
Security
Instead of transferring monies to a broker's pool or towards deposits, you can manage
your own demat and bank accounts when you trade through ICICIdirect.com. It provides
you the flexibility to pay only when you trade.
Strengths
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1. Management philosophy and commitment to maximize shareholders returns
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2. Upgraded product design and development facilities
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diversification
Opportunities
1. UFSL has initiated development of products for diesel application. This will provide
tremendous scope for diversification and growth
2. Acquisition of AMTEC to provide opportunities to access global OEMs
4. The introduction of new emission norms will provide UFSL opportunity to develop
injection systems and thereby upgrade the status of the company from product to system
supplier.
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3. Increasing popularity of alternative fuel vehicles, such as Hybrid, Hydrogen powered,
CNG and LPG vehicles poses new challenges for the company
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ACHIEVEMENT AND AWARD a
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Since inception, i-SEC’s expertise has been time and again widely recognized by both
domestic and international agencies.
Our Fixed Income team for the last two years (CY 2004 and 2005) has been
adjudged the “Best Bond House” in India by both Asia money and Finance Asia. The
equities team was adjudged the ‘Best Indian Brokerage House-2003’ by Asia money. The
Corporate Finance team, according to Bloomberg topped the M&A league tables in 2003.
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