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Table of ContentsA Broad Analysis of the industry 2

History and evolution of Investment Broking Industry 2

Growth Rate, Profitability and future of Investment Broking Industry……………………………………………………………………3

History and evolution of ICICI securities…………………………………………………………………………………………………………….3

Growth Rate, Profitability and Future for ICICI Securities…………………………………………………………………………………….3

Size of Industry across the world…………………………………………………………………………………………………………………………4

Size of Industry in India……………………………………………………………………………………………………………………………………..4

Key Success Factors for an Organization in Investment Banking Industry………………………………………………………………6

An Evaluation of Activity System Maps 8

Activity System Map for Low-Cost Organization 8

Activity System Map for Diversified Organization 9

An External and Internal Analysis of the Industry………………………………………………………………………………………10

Porter’s 5 Force Analysis…………………………………………………………………………………………………………………………………..10

Pestel Analysis…………………………………………………………………………………………………………………………………………………11

Closest Rival Analysis……………………………………………………………………………………………………………………………………….12

Low-Cost Providers in different Continents…………………………………………………………………………………………………13

Africa……………………………………………………………………………………………………………………………………………………………..13

North America…………………………………………………………………………………………………………………………………………………14

Europe……………………………………………………………………………………………………………………………………………………………15

Asia………………………………………………………………………………………………………………………………………………………………..16

South America…………………………………………………………………………………………………………………………………………………17

Leading Organizations in diversified sectors in Different Continents………………………………………………………19

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Africa…………………………………………………………………………………………………………………………………………………………….19

North America……………………………………………………………………………………………………………………………………………….20

Europe………………………………………………………………………………………………………………………………………………………….21

Asia………………………………………………………………………………………………………………………………………………………………22

South America………………………………………………………………………………………………………………………………………………23

Business Model Evaluation…………………………………………………………………………………………………………25

ICICI Securities……………………………………………………………………………………………………………………………………………..25

Global Investment Solutions…………………………………………………………………………………………………………………………...33

Kotak Securities…………………………………………………………………………………………………………………………………………….37

IDBI Capital Markets……………………………………………………………………………………………………………………………………..41

History and Evolution of Investment Broking Industry

Stock brokerage firms have been an established feature in the financial industry for nearly one thousand years. Dealing in debt securities, brokers employ a variety of systems to aid investors with the purchase and sales of stocks and bonds in a variety of markets. The firms have changed over the years, growing to massive organizations that can affect the entire financial sector positively or negatively with their performance. Changing with the times, the early twenty-first century saw a rise of online trading that enabled the average investor to take part in the stock market for the first time

The Early Trading

During the 11th century, the French began regulating and trading agricultural debts on behalf of the banking community, creating the first brokerage system. In the 1300s, houses began to be set up in major cities like Flanders and

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Amsterdam in which commodity traders would hold meetings. Soon, Venetian brokers began to trade in government securities, expanding the importance of the firms.In 1602, the Dutch East India Company became the first publicly traded company in which shareholders could own a portion of the business. The stocks improved the size of companies and became the standard bearer for the modern financial system.

The Initiation of Brokerage Firms

The earliest brokerage firms were established in London coffee houses, enabling individuals to purchase stocks from a variety of organizations. They formally founded the London Stock Exchange in 1801 and created regulations and memberships. The system was copied by brokerage firms across the world, most notably on Chestnut Street in Philadelphia. Soon, the US exchange was moved to New York City and various firms like Morgan Stanley and Merrill Lynch were created to assist in the brokering of stocks and securities. The firms limited themselves to researching and trading stocks for investment groups and individuals

During the 1900s, stock brokerage firms began to move in a direction of market makers. They adopted the policy of quoting both the buying and selling price of a security. This allows a firm to make a profit from establishing the immediate sale and purchase price to an investor. The conflict with brokerage firms setting prices creates the concern that insider trading can result from the sharing of information. Regulators have enforced a system called Chinese Walls to prevent communication between different departments within the brokerage company. This has resulted in increased profits and greater interconnection within the financial industry.

The Collapse of the Modern Firms (The 21st century)

The creation of high valued brokerage firms like Goldman Sachs and Bear Sterns created a system of consolidation. Working with hundreds of billions of dollars, the larger firms began to merge and take over smaller firms in the last half of the 20th century. Firms like Smith Barney were acquired by Citigroup and other investment banks, creating massive financial institutions that valued, held, sold, insured and invested in securities. This conglomeration of the financial sector created an environment of volatility that caused a chain reaction when other firms like Bear Sterns and Lehman Brothers filed for bankruptcy. Trillions of dollars of assets were tied together in different companies and resulted in a large economic collapse in late 2008.

Growth Rate, Profitability and Future for Investment Brokerage Industry

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The global investment banking & brokerage sector declined by 11.7% in 2011, to reach a value of $63.9 billion, representing a compound annual rate of change (CARC) of -6.7% for the period spanning 2007-2011

However, the sector marginally stabilized in 2012, posting a Compound Annual Growth Rate (CAGR) of 1.6% in the compound annual growth rate (CAGR) The M&A segment was the sector's most lucrative in 2012, with total revenues of $28bn, equivalent to 44.3% of the sector's overall value.

The performance of the sector is forecast to accelerate, with an anticipated CAGR of 3.2% for the five-year period 2012 - 2017, which is expected to drive the sector to a value of $74.1bn by the end of 2017.

History and Evolution of ICICI Securities

ICICI Securities is a wholly owned subsidiary of ICICI Bank- multinational banking and financial services company headquartered in Mumbai. ICICI Bank was established by the Industrial Credit and Investment Corporation of India, an Indian financial institution, as a wholly owned subsidiary in 1955. The parent company was formed in 1955 as a joint-venture of the World Bank, India's public-sector banks and public-sector insurance companies to provide project financing to Indian industry. The bank was initially known as the Industrial Credit and Investment Corporation of India Bank, before it changed its name to the abbreviated ICICI Bank. The parent company was later merged with the bank.

Growth Rate, Profitability and Future for ICICI Securities

ICICI Securities witnessed a growth rate of 2.73% in the financial year 12-13. However the profit declined by 11.54% in the same period. This was mainly due to the global slump due to which almost all the investment brokers faced a huge loss. Given, the quarterly results, the earnings and profits for ICICI securities is expected to rise to about 4%. M&A is expected to be responsible for a major chunk of profits.

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Size of the Industry across the world

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Global investment banking revenue increased for the fifth year running in 2007, to a record US$84.3 billion, which was up 22% on the previous year and more than double the level in 2003. Subsequent to their exposure to United States sub-prime securities investments, many investment banks have experienced losses. As of late 2012, global revenues for investment banks were estimated at $240 billion, down about a third from 2009, as companies pursued less deals and traded less. Differences in total revenue are likely due to different ways of classifying investment banking revenue, such as subtracting proprietary trading revenue.

Revenues have been affected by the introduction of new products with higher margins; however, these innovations are often copied quickly by competing banks, pushing down trading margins. For example, brokerages commissions for bond and equity trading is a commodity business but structuring and trading derivatives has higher margins because each over-the-counter contract has to be uniquely structured and could involve complex pay-off and risk profiles.

Size of the Industry in India

India’s banking sector is currently valued at Rs 81 trillion (US$ 1.31 trillion). It has the potential to become the fifth largest banking industry in the world by 2020 and the third largest by 2025, according to an industry report. The face of Indian banking has changed over the years. Banks are now reaching out to the masses with technology to facilitate greater ease of communication, and transactions are carried out through the Internet and mobile devices.With the Parliament passing the Banking Laws (Amendment) Bill in 2012, the landscape of the sector will likely change. The bill allows the Reserve Bank of India (RBI) to make final guidelines on issuing new bank licenses. This could lead to a greater number of banks in the country; the style of operation could also evolve with the integration of modern technology into the industry.Online BankingIDBI Bank Ltd has started an online Public Provident Fund (PPF) subscription facility for its customers. The bank had already received approval from the government to operationalize PPF transactions through the Internet. The facility would help accomplish the government’s initiative of electronic transactions in banking services, and also provide a strong platform to mobilise funds through the Small Saving Schemes. PPF account holders of the bank will have the benefit of accessing their PPF account online, view account details, print statements, and make subscription to PPF by way of online transfer of funds.Simple steps such as memorising personal identification number (PIN), bringing down credit limits on cards, using virtual cards for internet transactions and deactivating transactional services linked to a mobile number can limit bank frauds, according to experts. Changing the password regularly can also save an account from fraud attacks.Online money transfers and money credited directly to an account are the second preferred mode of inward remittances in India, rising to 22 per cent in fiscal 2013 from 14 per cent in 2009, according to an RBI report. "While electronic wires/SWIFT continue to be the dominant mode of transferring remittances by overseas Indians, in the recent period, there has been a significant increase in the

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share of remittances transmitted through direct transfer to bank accounts and through online mode," the report stated.Key StatisticsThe revenue of Indian banks increased four-fold from US$ 11.8 billion to US$ 46.9 billion in the period 2001–2010. In that phase, the profit after tax rose about nine-fold from US$ 1.4 billion to US$ 12 billion.Banking Index with the Sensex (Bankex) that tracks the performance of primary banking sector stocks grew at a compounded annual growth rate (CAGR) of nearly 20 per cent over the period 2003–2012.Total number of onsite and offsite ATMs of Indian Banks reached 100042 in July 2012.Recent DevelopmentsThe central banks of Japan and India have agreed to a proposal that expands the maximum amount of the Bilateral Swap Arrangement (BSA) between the two countries to US $50 billion. The agreement is for a three-year period (2012–15); the previous size of the BSA was US $15 million. The new agreement will enable the two countries to swap their local currencies against the US dollar for an amount up to US$50 billion.Public sector banks will soon offer customers insurance products from different companies as against products from one company. The finance ministry has asked public sector banks to become insurance brokers instead of corporate agents. This move was one of the steps stated by finance minister Mr P Chidambaram in early 2013, as a way to increase insurance penetration.Citi has promoted Mr Anand Selvakesari as the head of consumer banking for the Association of Southeast Asian Nations (ASEAN) region. Mr Selvakesari will continue his present role as Citi’s consumer banking business head in India – a post he has occupied since July 2013 – as well as look after the consumer banking operations in Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam.Indian Overseas Bank (IOB) has received approval from the RBI to open a second branch in Bangkok, according to the bank’s chairman and managing director Mr M Narendra. The bank will likely open the second branch before March 31, 2014. Also, the bank is looking to expand its presence. "Our focus is on opening more rural branches and taking banking to villages. We have covered 3,000 villages under the financial inclusion scheme,” said Mr Narendra.In an effort to expand its revenue streams, Bank of India (BOI) plans to enter the merchant banking space through BOI Shareholding Ltd. BOI is looking to buy Bombay Stock Exchange’s (BSE) entire shareholding in their joint venture BOI Shareholding Ltd (BOISL). Another reason for BOI’s inclination to foray into merchant baking is to offer a greater range of financial services to its customers.

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(iii)

Key Success Factors for an Organization in Investment Banking Industry

The Key success factors for an organization in the Investment Banking Industry are:

1. Marketing

2. Banking

3. Advertising

4. Keeping abreast of technological changes

5. Management

6. Human Resources

7. Work-Life Policies

8. Pricing

Evaluation of ICICI securities on these criteria:

1) Marketing: ICICI Securities follows a wide marketing policy approach, wherein it uses Tele-Calling and Lead Management Systems to reach to the prospective customers and generate leads. Yellow pages are additionally used to gather data about the customers. Canopies are also set up in crowded areas to resolve customer issues.

2) Banking: ICICI Securities has a good presence in almost all investment sectors: Institutional, Retail and Private Wealth Management. It is also a market leader in the corporate finance and Institutional Equities. The Equity Capital market is almost entirely dominated by ICICI Securities. It also has a good customer base amongst all its clients

3) Advertising: ICICI Securities spends a good chunk of its revenue in Direct Marketing or Advertising. It uses almost all the sources i.e print media, internet, television etc to reach out to the prospective customers

4) Technological Changes: Keeping abreast of the technological changes is quite an important factor for any company in any industry. ICICI securities ltd. Strongly believes in the importance of technology and keeps coming up with newer and out of the box methods to keep the customer updated with the latest happenings. ICICI was the first banking organization to realize the

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importance of mobile banking and today has the highest number of mobile banking applications

5) Management: ICICI follows a simplistic 3-layered management structure with most of the power concentrated with the top management

This type of structure is followed in most of the banks

6) Human Resources: The HR department promises good career development opportunities with more than 10 board level positions occupied by the internal staff itself. They follow a non-hierarchical promotion system with an extension of authority along with accountability. Apart from annual promotions and bonuses the employees are also eligible for esops as an added incentive

7) Work Life Policies: To keep the employees incentivised ICICI promises various benefits and good work life policies. These include employee salary account benefits, family health insurance, well laid systems, processes and infrastructure. It also promises various staff retirement benefits like gratuity, superannuation fund, pension, provident fund, leave encashment etc.

8) Pricing: ICICI Securities has a high priced structure. Most of the commissions are higher than those of its competitors like sharekhan, HDFC securities etc. In fact, the brokerage on account opening and intra-day transactions are almost 20% higher than those of its competitors. This is the only KSF where ICICI securities needs to improve to stay competitive.

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B.O.D, Chairman,

CEO,CFO,MD

Branch Manager1

Branch Manager2

Branch Manager3

Zonal Heads

Global Offerings

Extensive and efficient research

Extensive and efficient research

An Evaluation of Activity System Maps

Activity System Map For Low-Cost Organization (Interactive Brokers)

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Alignment with

governments

Universal Technolo

gy

Strong Ties with

other countries

Risk taking capabilitie

s

Excellent R&D

facilities

Webinars

Excellent Market

Research methodolo

gies

Strategy to cover all research aspects

Newer trading

tools and technologi

es

Extensive and

efficient R&D team

Meet short term challenges

Balanced long term growth

Capacitated for future growth

Activity System Map For Diversified Business (ICICI Securities)

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Reduce exposure to internationa

l marketsOnly

secured loans in

retail sector

Careful project

selection in infra sector

Leverage capital to increase

ROE

Improve funding

mix

Strong capital base

Buildup branch

network

Diversify business

lines

Improve ROA

An External and Internal Environment Analysis of the Industry

Porters 5 Forces on Investment Brokerage Industry

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Existing Competition

Mergers and Aquisitions-to avoid advertising and marketing costExit Barriers: Low exit Barriers allow weak firms to easily exit marketLarge Industry SizeGovernment role in competitionFew Competitiors

Bargaining power(suppliers)

Mortgage securitiesMargin LoansCommissions on trading securitiesInterest on Margin trading securities

Bargaining Power(Customers)

High Switching CostsTechnology(high)Customer LoyaltyNumber of options (high)High Buyer price sensitivitySpecial Customizations

PESTEL Analysis on Investment Brokerage Industry

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Threat of Substitutes

Switching costsProduct performance

Threat of new entrants

Strength of distribution network(high as distribution in dependant on technology only)Capital requirementsBrand nameCustomer loyalty

Politi

cal F

acto

rs Regulatory FrameworkMarket deregulation measuresMonetary PolicyBudget and Budget reformsFDI policies

Econ

omic

Fac

tors GDP

Interest ratesInflation RatesInvestment and savings

Soci

al F

acto

rs Changes in the lifestyle of peoplePopulation explosionLiteracy rateEmployment rateWorking ConditionsDemographicsLabour Laws

Closest Rival Analysis:

The closest rival to ICICI securities is ShareKhan which is India’s second biggest stock broker (in terms of distribution network) and provides brokerage services through its online portal sharekhan.com. Sharekhan offers lesser price than ICICI securities on almost all accounts (account opening, yearly maintenance, brokerage etc.)

Strategy analysis:

ShareKhan follows a 2 pillar approach with regards to making a new policy and marketing it

Design of Policy: This is the first component which involves extensive R & D and extensive market research wherein the executives get to know the market demands according to the demographics. The team also needs to get an insight into the organization’s existing processes and policies. After this an operating design is formed which is in accordance with the industry standards and is also compliant with the RBI and SOX guidelines and regulations. The team also engages with the entire management and stakeholders in every step of the design process

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Tech

nolo

gica

l Fac

tors Internet

Mobile BankingSecurityCompatibility with new gadgetsCredit Card, Debit Card facilities

Envi

ronm

enta

l Fac

tors Growth of the

EconomyGrowth rate of different sectorsAgri:18.5%Services: 55.2%Industry: 26.3%

Lega

l Fac

tors Banking

Regulation actTax reforms

Marketing of Policy: After the policy has been designed it is marketed to the prospective customers. Tele-Calling: Tele-Calling is used to reach the prospective customers.

This is a cheap and time saving technique of reaching and motivating customers

Lead Management System: In this process leads are generated by the customers who wish to purchase the product. Any enquiries are also resolved in this system itself

Yellow pages: These are used to gather data for making calls so that the customers who initially did not find time can be made aware about the product. The customers are also encouraged to ask questions related to the product so that they can increase their own awareness

Canopies: Canopies are put in different parts of cities where people generally gather about in crowds. The people who are inquisitive ask questions about the products and offerings. The executives respond to these queries and this also gives an idea about the general brand awareness among the people about the company

Direct Marketing: This includes the use of print media and internet and provides the information about latest offerings to the customers directly

Low-Cost Providers in different Continents

1) Africa – ABSA (Association of Building Sustainability Assessors) in South Africa is the leading Low-Cost Investment Brokerage solution in Africa currently.

Vision: To become the pre-eminent bank in South Africa and the rest of Africa.

Absa’s Mission: ABSA’s Mission is to ensure that they: Put the customer at the centre of everything they do that we: Differentiate through superior service and competitive products Continuously Innovate Are brilliant at execution

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Engage the best of the people in business Lead by example

Objectives: The Objectives of ABSA include: Extending their Retail Banking Franchise Strengthening South-African Commercial Banking

Franchise Extending existing sub-Saharan African markets Entering new profitable sub-Saharan markets Creating distinct capabilities for Barclays Group

The Key attributes for success for ABSA are: Sustainability: Providing range of benefits to suit individuals and

companies interested in improving and building sustainability Thought leadership: Provide mechanism for members to input into

State and Federal policies on future initiatives Diversifying Assessor programs :Further developing the capacity of

the industry to conduct a range of sustainability assessments National Presence: Have a presence in each state/region

Evaluation

Does it include…? Does it mention values like…?

CustomersProducts/

ServicesMarkets Citizenship Teamwork

Yes Yes No No No

TechnologyConcern for

survivalPhilosophy Excellence Integrity

No No No Yes No

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Self-conceptConcern for

public imageEmployees

Score AverageYes No Yes

Customer or product-oriented?

Customer-oriented

2) North America – IB(Interactive Brokers) in US is the leading low-cost Investment Brokerage Firm in North America

Vision: To become a leading Brokerage firm and low-cost leader in the world

Mission: To create technology to provide liquidity on better terms. Compete on price, speed, size, diversity of global products and advanced trading tools• put the customer at the centre of everything that

Objectives: the objectives include: Making markets in highly liquid, exchange traded instruments with

readily determinable values Broad diversification globally and across multiple instruments Proprietary risk management system to estimate the fair value of

financial instruments

;• differentThe Key attributes for success for IB are:

Low Cost Global Offering Superior Trading Technology Risk Management Comprehensive reporting Strength and Security

Evaluation

Does it include…? Does it mention values like…?

CustomersProducts/

ServicesMarkets Citizenship Teamwork

No Yes No No No

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TechnologyConcern for

survivalPhilosophy Excellence Integrity

Yes No No Yes No

Self-conceptConcern for

public imageEmployees

Score PoorNo No No

Customer or product-oriented?

Product-oriented

3) Europe- In Europe SAXO Bank is the major Low Cost Provider

Mission: To be the world’s most profitable and professional facilitator in the global capital markets

Vision: To let our seven core values: Rationality, independence, justice, Integrity, Honesty, pride and productivity guide us in all operations and activities and bind our employees, clients and stakeholders together on the path to continued success.

Objectives: To become a market leader in low cost Investment Banking solutions in Europe especially in the UK and to increase presence in African and North American markets as well

Key Success Factors: Keeping abreast with latest technology Licensed and regulated banking A desirable workplace

Evaluation

Does it include…? Does it mention values like…?

CustomersProducts/

ServicesMarkets Citizenship Teamwork

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No Yes No No No

TechnologyConcern for

survivalPhilosophy Excellence Integrity

No No No Yes No

Self-conceptConcern for

public imageEmployees

Score PoorNo Yes No

Customer or product-oriented?

Product-oriented

4) Asia- In Asia too, SAXO Bank(Singapore) is the major Low Cost Provider

Mission: To be the world’s most profitable and professional facilitator in the global capital markets

Vision: To let our seven core values: Rationality, independence, justice, Integrity, Honesty, pride and productivity guide us in all operations and activities and bind our employees, clients and stakeholders together on the path to continued success.

Objectives: To become a market leader in low cost Investment Banking solutions in Europe especially in the UK and to increase presence in African and North American markets as well

Key Success Factors: Keeping abreast with latest technology Licensed and regulated banking A desirable workplace

Evaluation

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Does it include…? Does it mention values like…?

CustomersProducts/

ServicesMarkets Citizenship Teamwork

No Yes No No No

TechnologyConcern for

survivalPhilosophy Excellence Integrity

Yes No No Yes No

Self-conceptConcern for

public imageEmployees

Score PoorNo No No

Customer or product-oriented?

Product-oriented

5) South America- In South America, Kallpa Securities(Peru) is the major Low-Cost provider

Mission: To actively contribute to the development of Latin America's stock markets, offering efficient services in brokerage, portfolio management, financial advisory, corporate finance, valuations and others related to investment banking.

Evaluation

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Does it include…? Does it mention values like…?

CustomersProducts/

ServicesMarkets Citizenship Teamwork

No Yes Yes No No

TechnologyConcern for

survivalPhilosophy Excellence Integrity

Yes No Yes Yes No

Self-conceptConcern for

public imageEmployees

Score GoodYes No No

Customer or product-oriented?

Product-oriented

Vision: To be a leading company among those that provide financial services, always looking to satisfy our clients, helping them optimize their investment opportunities.

Objectives: The Objectives are: Provide an adequate return on equity to shareholders of the company. Be competitive, gaining market share steadily Grow assets under management and assets trading by the company. Expand slowly but steadily, nationally and internationally. Promote the culture of capital markets in Latin America.

Key success factors on which the company is evaluated are: Innovation Confidentiality Client focussed service Efficiency

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Leading Organizations with Diversified Services

1) Africa: In Africa, Fidelity Investments(Ghana) is the leading Organization with Diversified products and services

Mission: To be amongst the top five banks in Ghana by December 2014, based on all key performance indicators and anchored on three key pillars - our people, our service and processes, and return to stakeholders.

Vision: To become a world-class financial institution that provides superior returns for all stakeholders as follows: 

Our customers: The best place to bankOur shareholders: The best place to investOur employees: The best place to workOur regulators: The best place to benchmark

Objectives: The following are the objectives of Fidelity Investments Customer centric banking A strong brand Needs-based offering Wide pricing range To build together

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Evaluation

Does it include…? Does it mention values like…?

CustomersProducts/

ServicesMarkets Citizenship Teamwork

Yes No Yes No No

TechnologyConcern for

survivalPhilosophy Excellence Integrity

No No No Yes No

Self-conceptConcern for

public imageEmployees

Score GoodYes Yes Yes

Customer or product-oriented?

Product-oriented

2) North America: In North America too, Fidelity Investments(Ghana) is the leading Organization with Diversified products and services

Mission: To be the top bank in US by December 2014, based on all key performance indicators and anchored on three key pillars - our people, our service and processes, and return to stakeholders.

Vision: To become a world-class financial institution that provides superior returns for all stakeholders as follows: 

Our customers: The best place to bankOur shareholders: The best place to investOur employees: The best place to workOur regulators: The best place to benchmark

Objectives: The following are the objectives of Fidelity Investments Customer centric banking A strong brand Needs-based offering Wide pricing range To build together

Evaluation of mission statement

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Evaluation

Does it include…? Does it mention values like…?

CustomersProducts/

ServicesMarkets Citizenship Teamwork

Yes No Yes No No

TechnologyConcern for

survivalPhilosophy Excellence Integrity

No No No Yes No

Self-conceptConcern for

public imageEmployees

Score GoodYes Yes Yes

Customer or product-oriented?

Product-oriented

3) Europe: In Europe, Barclays Stockbrokers is the leading organization with diversified products/ services.

Mission: To make ethics and integrity synonymous with banking and to follow the Barclays way to lead value-led decision-making and taking a balanced approach to measuring performance and success

Vision: To become a ‘go-to’ bank, and to be recognized both for its performance and the values we embrace and set our purpose and values as the foundation for how we will work from now on.

Objectives: Needs-based offering Wide pricing range To build together Grow assets under management and assets trading by the

company. Expand slowly but steadily, nationally and internationally.

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Evaluation

Does it include…? Does it mention values like…?

CustomersProducts/

ServicesMarkets Citizenship Teamwork

Yes No Yes No No

TechnologyConcern for

survivalPhilosophy Excellence Integrity

No No No Yes No

Self-conceptConcern for

public imageEmployees

Score GoodYes Yes Yes

Customer or product-oriented?

Product-oriented

4) Asia: IB(Interactive Brokers) in Hong Kong is the leading low-cost Investment Brokerage Firm in North America

Vision: To become a leading Brokerage firm and low-cost leader in the world

Mission: To create technology to provide liquidity on better terms. Compete on price, speed, size,diversity of global products and advanced trading tools• put the customer at the centre of everything that

Objectives: the objectives include: Making markets in highly liquid, exchange traded instruments with

readily determinable values

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Broad diversification globally and across multiple instruments Proprietary risk management system to estimate the fair value of

financial instruments

Key attributes for success for IB are: Low Cost Global Offering Superior Trading Technology Risk Management Comprehensive reporting Strength and Security

Evaluation

Does it include…? Does it mention values like…?

CustomersProducts/

ServicesMarkets Citizenship Teamwork

No Yes No No No

TechnologyConcern for

survivalPhilosophy Excellence Integrity

Yes No No Yes No

Self-conceptConcern for

public imageEmployees

Score PoorNo No No

Customer or product-oriented?

Product-oriented

5) South America: HSBC Brasil in Brazil is the leading low-cost Investment Brokerage Firm in South America

Mission: Throughout our history, we have been where the growth is, connecting customers to opportunities. We enable businesses to thrive and economies to prosper, helping people fulfill their hopes and dreams and realize their ambitions. This is our role and purpose

Vision: To be the leading international Bank in South America

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Objectives: To become a market leader in low cost Investment Banking solutions in South America and to increase presence in African and North American markets as well

Key attributes for success are:

Financial strength Risk Management Speed Performance focus Efficiency Quality Customer Focus

Evaluation

Does it include…? Does it mention values like…?

CustomersProducts/

ServicesMarkets Citizenship Teamwork

No Yes No No No

TechnologyConcern for

survivalPhilosophy Excellence Integrity

Yes No No Yes No

Self-conceptConcern for

public imageEmployees

Score GoodNo No No

Customer or product-oriented?

Product-oriented

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Business Model Evaluation

We shall compare and contrast the business models of these companies on the basis of 4 major heads:

Target customer segments Distribution Channels Products Cost Structure Revenue Model

ICICI Securities

Target customer segments:

ICICI Securities basically targets the following customer segments:

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-

Corporate

ICICI Securities has been at the forefront of capital markets advisory for several decades and has also been involved in most of the major public equity issuances in recent times. The company was among the leading underwriters of Indian equity and equity linked offerings with unparalleled execution capabilities. ICICI Securities provides end-to-end fund raising solutions, from structuring to placement of the equity instrument.

ICICI Securities has successfully managed public issues of companies which were the first in their sector to tap the market - media both print and television, first Govt. of India divestment IPO, first pure-play internet company in India, first mobile VAS company

ICICI Securities was also involved in various pioneering issues in the Indian capital markets - the first issue using the new alternate book-building (French Auction) method (NTPC), the first issue of shares with Differential Voting Rights (Tata Motors), the first public issue of Non-Convertible Debentures (Tata Capital), the first delisting using the reverse book-building mechanism (Hewlett-Packard) etc.

Below is a list of some of the major Corporate Client activities that ICICI Securities has undertaken in the recent past:

IPOs

Jaypee Infratech: In 2010, Book Running Lead Manager, Rs. 22.6 bn A2Z Maintenance & Engineering Services: In 2010, Book Running Lead

Manager, Rs. 8.6 bn Punjab & Sind Bank: In 2010, Book Running Lead Manager, Rs. 4.7 bn

Indian Depository Receipts (IDRs)

Standard Chartered: In 2010, Syndicate Member ? first-ever issuance of an IDR, Rs. 24.8 bn

FPOs

NTPC: In 2010, Book Running Lead Manager, Rs 84.8 bn Power Grid Corp. Of India: In 2010, Book Running Lead Manager, Rs 74.4

bn

Public Issue of Debt

Shriram Transport Finance Company: In 2010 & 2009 , Lead Manager, Rs 15 bn

L &T Infrastructure Finance Company: In 2010, Lead Manager, Rs 2.6 bn

Rights Issues

Adani Enterprise: In 2010, Lead Manager, Rs. 14.8 bn IBN18 Broadcast: In 2010, Sole Lead Manager, Rs. 5.1 bn

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Television Eighteen India: In 2009, Lead Manager, Rs. 5.04 bn

Delisting

Sulzer India : In 2010, Sole Manager, Rs. 0.81 bn Lotte India Corp: In 2009, Sole Manager, Rs. 0.4 bn Avery India : In 2009, Sole Manager, Rs. 0.29 bn

Landmark Transactions

Tata Motors: First Rights Issue of shares with Differential Voting Rights Tata Capital: First public issue of secured Non Convertible Debentures

(NCD) Daiichi Sankyo Co: Sole Managers to the one of the largest open offers of

Rs 68.2 bn

Private Equity Players

ICICI helps companies to raise capital during the seed, growth and expansion phases as well as acquisition financing, structuring the deal to maximize value for all its stakeholders.

ICICI’s extensive industry knowledge across multiple sectors, wide-ranging deal structuring capabilities and thorough grasp of the regulatory environment make it the 'banker of choice', for companies and private equity funds alike.

ICICI has working relationships with all major private equity players, both in India and abroad and can facilitate access for clients to these investors. It also advices on a wide variety of products including mezzanine and private equity financing, secondary sale transactions, pre-IPO deals and preferential allotments by listed companies.

In the advisory space, some of the transactions advised by ICICI Securities in FY10 included the following:

CEEBCO: In 2010, Exclusive Financial Advisor for Private Equity placement with Tata Capital, USD 15mn

Muthoot Finance: In 2010, Exclusive Financial Advisor for Private Equity placement with Barings and Matrix Partners, USD 17.5mn

A2Z Infrastructure: In 2009, Exclusive Financial Advisor for Private Equity placement with Indian Equity partners, USD 32.4 mn

Shiv-vani: In 2009, Exclusive Financial Advisor for Private Equity placement with Franklin Templeton, USD 20mn

PNB Housing Finance: In 2009, Exclusive Financial Advisor for Private Equity placement with New Silk Route, USD 17mn

Arcil: In 2009, Exclusive Financial Advisor for Private Equity placement with GIC, USD 60 mn

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Nahar Retail: In 2008, Exclusive Financial Advisor for Private Equity placement with Sequoia, USD 27 mn

Global Institutional Investors

ICICI Securities assists global institutional investors to make the right decisions through insightful research coverage and a client focused Sales and Dealing team. A dedicated and specialized research team ensures flow of well thought-out and well-researched stock ideas and portfolio strategies.

The Sales and Dealing team has demonstrated strong sales and execution capabilities of actionable ideas to clients which have resulted in good relationships across geographies.

ICICI Securities enjoys the first mover and market leader advantage in the derivatives segment and offers the entire spectrum, from set-up to trading strategy.

Small Time Investors (RETAIL)

ICICI Securities empowers over 2 million Indians to seamlessly access the capital market with ICICIdirect.com, an award winning and pioneering online broking platform. The platform not only offers convenient ways to invest in Equity, Derivatives, Currency Futures, Mutual Funds but also other services Fixed Deposits, Loans, Tax Services, New Pension Systems and Insurance are available. ICICIdirect.com offers a convenient and easy to use platform to invest in equity and various other financial products using its unique 3-in-1 account which integrates customers saving, trading and demat accounts.

Apart from convenience, ICICIdirect.com also offers access to comprehensive research information, stock picks and mutual fund recommendations among other offerings.

ICICIdirect.com is the first broker in India to introduce `Digitally Signed Contract Note' to its customers. As a result, the process of generating contract notes has been automated and the same would be instantly available to its customers in a safe and secure manner through the website.

Distribution Channels

ICICI Securities offers Brick and click type of distribution model

Brick and click

ICICI Securities has set-up neighbourhood financial stores which offer a variety of financial products and services under one roof. It is a one-stop shop that facilitates existing and potential customers to speak to our team and understand their financial plans and goals. ICICI Securities has 250 stores across 66 cities in India.

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Another unique concept called the ICICIdirect Money Kitchen, was launched in late 2009. An extension of the superstore model, the money kitchen is an innovative financial store where visitors can create their profiles to not only analyze their investment strategy by using various financial tools but also monitor it from time-to-time.

To enable its customers to maximize their returns and plan for their future, ICICIdirect has also started financial planning services at these stores. Customized financial plans can be created for our customers by dedicated Relationship Managers who will understand the customer's requirements and future goals.

Based on this information, the Relationship Manager works on creating a comprehensive and easy-to-read financial plan. This enables ICICIdirect to move from just a transactional based relationship to a meaningful and value-added long-term relationship with our customers. ICICIdirect’s services and offerings evolves according to the customer's ever changing requirements and goals.

Customers can walk-in to the financial superstores for products like ICICIdirect 3-in-1 online trading account, equities, mutual funds, IPO, Life and General insurance, Fixed Deposits and many other financial products. The stores also conduct periodic training sessions on markets and demo sessions of the trading website.

ATS

The Active Trader Service is an innovative offering from ICICI Securities which is ideal for those who are truly 'born traders'.

As a customer of the Active Trader Service, we assure you truly personalised service with a dedicated relationship manager assigned to your account.

We have also set up a special research team who is focused on helping you achieve your targets .The research team has developed a robust set of research products to help you make informed investment decisions, depending on your risk profile, by analysing derivative market cues and other news as well as market and corporate information.

Some of the research products which we offer are as follows : Positional Calls, Technical Picks, Momentum Picks, Roll Over Monitor, Open Interest Insight, Special Situation Arbitrage, Pair Calls.

Products

A wide range of products across asset classes ensure that the financial solutions provided help meet the investment objectives that the investor has set for himself.

Diverse products and solutions

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Equity investing Experience investing in equities for trading or long-term investment objective with o Direct Equity

Market Information from over 300 companies through a dedicated team of expert researchers

o Mutual Funds Access over 2,500 Mutual Fund Schemes and Exchange Traded Funds Proprietary research methodology used to recommend best investment

optionso Portfolio Management Schemes

Open architecture philosophy to ensure that clients have access to amongst best of the breed Portfolio Management Schemes

o Structured Products Equity linked debentures offered based on in house market views and

your risk appetite Due diligence to ensure that only the best issuers are made available to

youo Derivatives

Derivative strategies designed to take advantage of different market opportunities

Trading ideas

Fixed Income o Low-risk investments with steady and predictable returns

Invest in a range of debt instruments like bonds and deposits with good credit rating along with attractive yields including Government, Quasi Government and Public Sector (PSU) Bonds

Access to the entire mutual fund universe Mutual Fund debt schemes recommendations based on internal fund

research and debt market view

o Structured debt and notes Facilitating access to structured debt instruments which are secured

by property, shares or asset collateralization Structured Notes with assured or conditional coupons linked to equity

and gold

Alternate InvestmentsProvide access, research and execution capabilities across alternative investments to achieve investment goals.

o Real Estate Invest in residential and commercial Real estate with access to pre-

launch offers and attractive rental yields leveraging on the strong relationship with developer and strong market access through the referral model.

Invest in real estate funds from fund houses where due diligence done by I-Sec.

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o Private Equity and Venture Capital Invest in carefully selected Private Equity (PE) or Venture Capital (VC)

funds across various organisations by leveraging on institutional linkages to directly invest in early stage and growth companies.

o Structured products Diversify investment to other asset classes like Gold, Silver, Oil and

other commodities through structured products Structure investments in unlisted debentures, PMS schemes,

Preference shares, convertible debentures, equity shares in Special Purpose Vehicles (SPV’s)

o Global Investment Experience online investing in over 13 US Stock Exchanges including

NYSE, NASDAQ and AMEX. Diverse investment opportunities of Stocks listed on US Exchanges,

Exchange Traded Schemes, Derivatives and Managed Products

o Currency Trading Leverage on research and trading ideas and hedge currency exposure

with the online currency trading platform

Cost Structure and Revenue Stream

Total Eligible Turnover(Per calendar Quarter)

Brokerage (%) Second Leg Of Intraday Trades

Effective Brokerage on Intraday Squareoff

Above Rs. 5 Crores 0.25 Nil 0.125%

Rs.2 Crores to 5 Crores

0.30 Nil 0.150%

Rs.1 Crores to 2 Crores

0.35 Nil 0.175%

Rs.50 Lakhs to 1 Crores

0.45 Nil 0.225%

Rs.25 Lakhs to 50 Lakhs

0.55 Nil 0.275%

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Less than Rs.25 Lakhs

0.75 Nil 0.375%

The minimum brokerage for transactions upto Rs.4667 on stocks quoting more than Rs.10 is Rs. 35/- per trade or 2.5% of the trade value whichever is lower. Brokerage rates as mentioned above, will be charged for trade value exceeding Rs. 4667.

Brokerage on stocks quoting upto RS. 10 would be levied at Rs. 0.05 per share. The total brokerage on such trade would be higher of Rs. 0.05 per share or Rs. 35, subject to maximum of Rs. 0.25 per share. All Statutory charges would be levied over and above the brokerage.

All Systematic Equity Plan transactions would attract brokerage equivalent to Cash segment. The minimum brokerage for transactions up to Rs 2000 is Rs 15 or 2.5% whichever is lower. All statutory charges would be levied over and above minimum brokerage. Brokerage rate mentioned above would be levied for trade value exceeding Rs. 2000

Service Tax (ST), Securities Transaction Tax (STT), SEBI turnover charges ,Transaction Charges(inclusive of Service tax) and Stamp duty will be charged in addition to brokerage as follows:

Service Tax (ST) will be charged at 12.36% on total value of brokerage. Securities Transaction Tax (STT) at 0.1% on turnover. SEBI turnover charges at 0.0001% on turnover. Transaction Charges will be charged @ 0.0031% for NSE and 0.0035% for

BSE on turnover. Applicable Service Tax would be charged over & above Transaction charges.

Applicable State wise Stamp Duty charges as per delivery and non-delivery would be levied on turnover.

Second leg of intra day square off transaction in cash will not be charged any brokerage

Brokerage in Margin & Margin Plus

Total Eligible Turnover per month Brokerage (%)

Above Rs. 20 Crores 0.030

Rs.10 Crores to 20 Crores 0.035

Rs.5 Crores to 10 Crores 0.040

Less than Rs.5 Crores 0.050

The minimum brokerage for transactions upto Rs 50000 is Rs 25 or 2.5% whichever is lower. All statutory charges would be levied over and above minimum brokerage.

Brokerage rate mentioned above would be levied for trade value exceeding Rs. 50000.

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Service Tax (ST), Securities Transaction Tax (STT), SEBI turnover charges. Transaction Charges (inclusive of Service tax) and Stamp duty will be charged in addition to brokerage as follows:

Service Tax (ST) will be charged at 12.36% on total value of brokerage. Securities Transaction Tax (STT) at 0.025% on turnover (Sell transactions

only). SEBI turnover charges at 0.0001% on turnover. Transaction Charges will be charged @ 0.0031% for NSE and 0.0035% for

BSE on turnover. Applicable Service Tax would be charged over & above Transaction charges.

Applicable State wise Stamp Duty would be levied on turnover. All Margin positions pending for delivery would be levied brokerage

equivalent to Cash segment. Any Margin position converted to delivery would attract brokerage

equivalent to Cash segment. For Margin positions taken under "Client Mode", the Brokerage and Other

charges of Cash Segment will be applicable. Interest on Late Payment will be charged @ 0.065% per day on all delayed

payments beyond pay-in date for positions taken under Margin - Client Square Off mode.

Brokerage in Future & Future Plus

For Equity Futures Equity Future and Future Plus

Total Eligible Turnover per month

Brokerage (%)

Brokerage on Second leg of Intraday square off (per lot)

Above Rs. 20 Crores 0.030 Rs.25/-

Rs.10 Crores to 20 Crores 0.035 Rs.25/-

Rs.5 Crores to 10 Crores 0.040 Rs.25/-

Less than Rs.5 Crores 0.050 Rs.25/-

Service Tax (ST), Securities Transaction Tax (STT), SEBI turnover charges ,Transaction Charges(inclusive of Service tax) and Stamp duty will be charged in addition to brokerage as follows:

Service Tax (ST)will be charged at 12.36% on total value of brokerage. Securities Transaction Tax (STT) at 0.01% on turnover(Sell trades only)

(w.e.f. 1st June, 2013). SEBI turnover charges at 0.0001% on turnover. Transaction Charges will be charged @ 0.00185%on turnover. Applicable

Service Tax would be charged over & above Transaction charges. Applicable State wise Stamp Duty would be levied on turnover. In case of Intra Day Transaction, Brokerage would be charged on higher leg

turnover

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International Organization with a similar Business Model

Global Investment Solutions

Target customer segments

Corporates.

Corporate Valuation: ICICI Securities advises corporate entities on valuation of companies, projects and other assets.  Valuation advisory services are for acquisition, divestment or ascertaining asset values for accounting purposes.

Mergers and Acquisitions:  Global advises on buy and sell side mandates for both acquisitions and divestitures and conducts due diligence in different sectors of the economy

Private Placements: Raising capital for business entities.  Key activities involve:

Validation of business plan and capital requirement Development of simple, efficient and practical transaction structure Provision of support for the entity in regulatory compliance and obtaining

approvals Preparation of statutory and marketing documents Solicitation to strategic and non-strategic institutional and non-institutional

investors Allocation and other closing procedures

Rights Offerings: Raising additional capital from existing shareholders through rights issues.  These offerings are typically structured to accommodate new investors for portions not subscribed to by the existing shareholders.

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Startups

Start-up Venture Promotion and Financing: It involves working with entrepreneurs who possess management skills, execution ability and domain knowledge. We assist them in raising equity capital through private placements and support ventures through co-investments when needed. As a strategic partner we take the initiative to identify business opportunities and management teams to promote new ventures.  Nurturing these companies through their formative years, we provide strategic guidance, management expertise, business and expansion opportunities, support for subsequent financing needs and listing on stock exchange(s).

Initial Public Offerings (IPO): We handle the management and co-management of IPOs along with other regional and international investment banks.  In markets, where conventional IPOs are not prevalent, we assist business entities in raising capital via private placements, advise, and assist them on their efforts to prepare and qualify for listing on stock exchanges.

Feasibility Studies: we conduct feasibility studies for new ventures, start-up projects, expansion projects, and for regulatory requirements.

MIX

Islamic Finance: We offer structured and standardised Islamic finance, including Sharia-compliant Murabaha and Sukuk issues, for its institutional clients.  Global is a pioneer in the shorter-term Islamic finance market, structuring terms of one, three, six and 12-month deals for local institutions.

Margin Lending: We offer margin lending service for purchase of securities to our clients in Kuwait and GCC region.

-

Individual users: only debt

Debt Capital Markets: Global is a leader in structuring and offering a variety of conventional and Islamic fixed income products in the region in terms of the aggregate proceeds from offering it has supported to raise.  We arrange, structure and offer a variety of conventional and Islamic fixed income products to our client base. We offer conventional debt programs and bond issues on a syndicated or stand-alone basis and participate in secondary market making activity in the Kuwaiti and GCC bond markets. Our experience in structuring debt capital market transactions are in the areas of real estate, insurance, media, banking and financial services, hospitality, logistics and warehousing, oil and gas and telecommunications.

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Products

Global has different products under the following divisions

Asset Management Division

Overview

Global’s Asset Management division is engaged in providing managed funds and portfolio management services on a fiduciary basis.

The division offers conventional and Islamic investment funds in Kuwait and other GCC and MENA markets, as well as alternative

investment products, including private-equity and buy-out funds, hedge funds and real estate funds with extensive geographic

coverage. The division also provides portfolio management services both on a discretionary and non-discretionary basis. It has a client

base of approximately 7,250 institutional investors and high net worth individuals. As at 31 December 2008, the division managed 39

funds and clients’ portfolios with an aggregate net asset

value of KD2.2 billion,

Principal Investments and Treasury

Overview

The Principal Investments and Treasury division undertakes a broad array of investments for Global’s own account in the GCC and

MENA regions and, to a limited extent, in other emerging markets such as India, Pakistan, Turkey and Malaysia. In particular, the

division undertakes the following activities:

- co-investing with Global’s clients in some of Global’s managed funds to diversify the risk-return profiles of its proprietary assets and

also pursuant to Kuwaiti regulations requiring fund managers to invest at least 5 per cent of a fund’s value

- strategic investments for (i) geographical expansion; (ii) private equity and private investment in public equity (PE/PIPE); (iii)

co-investing with Global’s investment banking clients in private placements and public offerings and (iv) related financial services

companies (including commercial banks, insurance companies and consumer finance companies);

- non-strategic, opportunistic investments in high-growth pre-IPO or IPO companies in a range of sectors;

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- proprietary trading in directional equity (long positions only); and

- investing in fixed income securities such as bonds and floating rate notes.

Investment Banking

Overview

The Investment Banking division provides private placements and public offerings of GCC and MENA equity and debt securities, merger

and acquisition advice, listings and Islamic financing advisory and, in respect of industry coverage, addresses the financial services,

insurance, healthcare and real estate sectors. The division has also striven to introduce innovative products and services (for instance,

advising and arranging innovative structured bond issues such as short term Islamic financings)

Real Estate Division

Overview

Global’s Real Estate division was formed in January 2006 to undertake Global’s investment activities relating to commercial and

residential real estate and development projects. Global creates real estate investment opportunities through its Dubai branch office

and also through strategic partnerships with real estate companies in the GCC, particularly in the UAE. Global’s real estate division

invests for its own account in residential and commercial real estate properties under development or fully developed commercial and

residential real estate properties.

Brokerage Division

Global has brokerage licenses in Kuwait, Bahrain, Saudi Arabia, Jordan, Oman, Tunisia, Egypt, Sudan and Pakistan through a network of

branch offices/subsidiaries and associates.

Our Brokerage division proposes to provide a range of securities dealing and trading, margin trading and arranging securities custody

services. It would also provide electronic brokerage services through Global Brokerage at www.globalbrokerage.com.kw, an internetbased

brokerage service for our clients preferring a self-directed approach to investing. Global Brokerage would offer trading of

equities, and selected fixed income securities, access to Global’s proprietary research, as well as Global’s other research, and a variety

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of online investing tools.

Global currently has a local presence in 14 countries

Revenue Stream

Domestic Organization with a similar Business Model

Kotak Securities:

Kotak Securitirs offers products under the following heads:

BROKERAGE(Kotak Securities Limited)

Offers a wide range of financial products, including stocks and shares, derivatives,

distribution of IPOs, mutual funds and insurance for its investors

Processes over 3,00,000 secondary market trades daily for a customer base of over

8,00,000

Enjoys pan-India presence with 1,330 branches, franchisees, representative offices

and satellite offices across 412 cities

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Pioneers in innovation and provides smart technology trading platforms to

customers

ASSET MANAGEMENT(Kotak Mahindra Asset Management Company Limited)

Offers schemes catering to investors with varying risk-return profiles, across a wide

range of products in the equity, debt and exchange traded funds (ETF) spaces

Distinction of being India's first fund house to launch a dedicated gilt scheme,

investing only in government securities

WEALTH MANAGEMENT

One of the largest and the most respected wealth management teams in India

Possesses in-depth understanding of the clients' requirements, macro environment

and various asset classes

The only Indian Wealth Management firm to feature in the 'Top 25 Private Banks' of

the world at Euromoney Private Banking Survey, 2013

Published the second edition of its India-specific report, Top of the Pyramid, with

CRISIL Research. This is India's only report that tracks the earning, spending and

investing patterns of Indian ultra-high networth individuals

CORPORATE BANKING

Caters to the dynamic requirements of major Indian Corporate Bodies, Financial

Institutions, Public Sector Undertakings, Multinational Companies, Mid-Market

Companies and Real Estate Organisations

Offers a comprehensive portfolio of products and services – working capital

financing, medium term finance, export credit, transaction banking, custody

services, debt capital markets and treasury services

COMMERCIAL BANKING

Plays a significant role in fulfilling the mission of funding deep into Bharat through

an expanding network of branches and associates

Meets a substantial portion of the priority sector lending requirement including

agricultural and tractor financing

Offers a range of products for purchase and operations of commercial vehicles and

construction equipment and contributes to India's development

Participates in India's growth by partnering some of the best small and medium

enterprises (SMEs) in the country

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Cost Structure and Revenue stream

Kotak’s products provide an ideal mix of brokerage rates and services.

Kotak provide rates as low as 0.18% for delivery and 0.03% for Intraday trades.

BROKERAGE STRUCTURE FOR INTERNET BASED TRADING

Delivery - Brokerage applicable both side

 

< 1lakh 0.59% Gateway A/C

1 - 5 lakh 0.55%  

5 - 10 lakh 0.45%  

10 - 20 lakh 0.36%  

20 - 60 lakh 0.27%  

60 lakh - 2 crore

0.23%  

> 2 crore 0.18% Privilege A/C

 

Intraday brokerages

 

< 25 lakhs 0.06% both sides Gateway A/C

25 lakhs - 2 crores

0.05% both sides  

2 crores - 5 crores

0.04% both sides  

> 5 crores 0.03% both sides Privilege A/C

 

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Futures

 

 Intraday

brokeragesSettlement  

< 2 crores 0.07% both sides 0.09% both sidesGateway A/C

2 - 5.5 crores 0.045% both sides 0.073% both sides  

5.5 - 10 crores 0.036% both sides 0.046% both sides  

10 - 25 crores 0.027% both sides 0.046% both sidesPrivilege A/C

> 25 crores 0.023% both sides 0.032% both sides  

 

Options - Brokerage applicable both side

 

Monthly Premium Volume

Intraday Brokerage%

Settlement Brokerage%

Minimum Brokerage

Per Lot (Intraday)

Minimum Brokerage Per

Lot (Settlement)

 

Upto 4Lacs 2.5 2.5 100 100Gatewa

y

4Lacs-11Lacs

2.25 2.5 100 100  

11Lacs-20Lacs

1.8 2.3 100 100  

20Lacs-50Lacs

1.35 2.3 80 100Privileg

e

< 50Lacs 1.15 1.6 70 100  

Here Premium Volume is considered as (Premium x Lot Size x No. of Lots). As per this new structure you will be charged either a fixed minimum brokerage per lot or the new brokerage rate based on the monthly premium value slabs you achieve, whichever is higher. Kindly note that this new brokerage structure for option contracts will be applicable with effect from 23rd February 2007.

Securities Transaction Tax (STT) on the securities markettransactions as revised w.e.f 01/06/2013 is as under:

1. STT @ 0.1% on all delivery(purchase and sale) trades in cash market

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2. STT @ 0.025% on sell leg of all non-delivery trades in the cash market(Equity shares and units of Equity Oriented Funds) market

3. STT @ 0.001% on sell leg of delivery trades in Equity Oriented Funds. 

4. STT @ 0.01% on sell trades in the futures contracts

5. STT @ 0.017% on sell trades in the options contracts

6. STT @ 0.125% on buy trades in the options contracts when the option is exercised

Government Organization within the same industry

IDBI Capital Markets (govt)

Below is a list of customer segment mix for IDBI Securities

Retail Broking & Distribution    

 

In addition to offering corporate, institutional clients, IDBI Capital also offers a gamut of financial products and services that cater to a varied cross section of investors.

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IDBI Capital also offers to financial planners, retail intermediaries and consumers to deliver lasting, innovative solutions.

Looking at the opportunities in our market and the growth of our country, we believe it is high time investors are educated about the nuances of investments. The knowledge and awareness gained will empower investors and help them create wealth. We firmly believe brokers, media and regulators have a pivotal role in assisting the individuals to become wealthy. We will go extra mile to empower the investors in managing their wealth to ensure a more rewarding future.

IDBI Capital aims to provide a single-point source for retail investors in their requirements for trading and investment products.

Product List

   

 

IDBI Capital as an institutional player provides the entire gamut of Capital Market services encompassing:

1. Public Offerings 2. Qualified Institutional Placements 3. Buyback 4. Takeover 5. Preferential Allotments 6. External Commercial Borrowings, FCCBs, etc.

The above activities entails liasioning with institutional investors such as treasury departments of Domestic Institutions, Banks and corporates, fund managers of mutual funds, private equity firms, FIIs, HNIs.

Cost Structure and Revenue Stream

Stock Broker Fees / Charges

  IDBI Paisabuilder

Trading Account Opening Fees

Rs 700

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Trading Account AMC NIL

Demat Account Opening Fees

NIL

Demat Account AMC Rs 350

Demat Account is Mandatory?

  IDBI Paisabuilder

Equity Delivery Brokerage

0.65% - 0.25%

Equity Intraday Brokerage

0.10% - 0.03%

Equity Futures Brokerage

0.10% - 0.03%

Equity Options Brokerage

Rs 100 per lot

Currency Futures Trading Brokerage

Currency Options Trading Brokerage

Commodity Trading Brokerage

Other Brokerage Charges

Minimum Brokerage Charges

Rs 25 per trade or 2.5% of the trade value whichever is lower.

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