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“INVESTMENT BANKING ININDIA”
IN PARTIAL FULFILMENT OF THE
REQUIREMENTS FOR MASTER’S DEGREE INFINANCE MANAGEMENT
2007-2010
ROLL NO. 35
LALA LAJPATRAI INSTITUTE OF MANAGEMENT,
HAJI ALI, MUMBAI.
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DECLARATION
I hereby declre !h! !h"# re$%r!& #'b("!!ed ") $r!"l *'l*"ll(e)! %* !he re+'"re(e)! *%r !he ,rd
*%r !he M#!er# %* F"))c"l M)-e(e)!& !% Ll L$!r" I)#!"!'!e %* M)-e(e)! "# (y
%r"-")l ,%r/ )d )%! '#ed )y,here *%r ,rd %* )y de-ree %r d"$l%( %r *ell%,#h"$ %r *%r
#"("lr !"!le# %r $r"0e#.
I *'r!her cer!"*y !h! ,"!h%'! )y %bec!"%) %r c%)d"!"%) I -r)! !he r"-h!# !% LLIM !% $'bl"#h )y
$r! %* !he $r%ec! "* !hey dee( *"! ") %'r)l#1M-0")e# )d )e,#$$er# e!c ,"!h%'! (y
$er("##"%).
Plce 2 M'(b"
Date : ---------------------------------
Signature
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PROJECT GUIDE CERTIFICATE FORM
I ASMIT NANDAJI MEJARI !he ')der#"-)ed R%ll N%. ! #!'dy")- ") !he Th"rd er %* MFM
"# d%")- (y $r%ec! ,%r/ ')der !he -'"d)ce %* Dr.1 M#.1 M". GANESH SHINDE ,"#h !% #!!e
!h! I h4e (e! (y ")!er)l -'"de %) !he *%ll%,")- d!e# (e)!"%)ed bel%, *%r Pr%ec!
G'"d)ce2
Sr. No. Date Signature of the Internal Guide
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6666666666666666666666666666 66666666666666666666666666
S#$%&'(") *+ ') C&%#&') S#$%&'(") *+ I%')"%&
PROJECT GUIDE CERTIFICATE FORM
Th"# "# !% cer!"*y !h! !he d"##er!!"%) #'b("!!ed ") $r!"l *'l*"ll(e)! %* !he re+'"re(e)! *%r !he
,rd %* MFM %* !he U)"4er#"!y %* M'(b" "# re#'l! %* !he b%)*"de ,%r/ crr"ed %'! by
M#//M".666666666666666666666666666666666666666666666666666666666')der (y
#'$er4"#"%) )d -'"d)ce )% $r! %* !h"# re$%r! h# bee) #'b("!!ed *%r ,rd %* )y %!her de-ree&
d"$l%( *ell%,#h"$ %r %!her #"("lr !"!le# %r $r"0e#. The ,%r/ h# l#% )%! bee) $'bl"#hed ") )y
#c"e)!"*"c %'r)l#1 (-0")e#.
D&') N&)
P&3) R* N*.
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INDE:
SR NO. PARTICULAR PAGE
1 E:ECUTIVE SUMMAR9 7
2 OBJECTIVE ;
RESEARCH METHODOLOG9 <
= DATA COLLECTION 10
! INTRODUCTION 11
> DEFINITION 12
7 REGISTRATION OF INVESTMENT BANK 12
; GRANT OF CERTIFICATE 1
< REGISTRATION CHARGES 1=
10 CONDITION OF REGISTRATION 1=
11 CODE OF CONDUCT 1!
12 OFFERING AND SERVICES OF INVESTMENT BANK 1<
1 ORGANISATION STRUCTURE 22
1= CHINESE ?ALL CONCEPT 27
1! CASE STUD9 ADANI PO?ER IPO 2;
1> CASE STUD9 ICICI SECURITIES =0
17 CONCLUSION !;
1; BIBILIOGRAPH9 !<
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EXECUTIVE SUMMARY
The $r%ec! %) “I%@)/')%' B&%#%$ #% I%#& “ h# bee) ')der!/e) ,"!h 4"e, !% #!'dy !he
%4erll ")4e#!(e)! b)/")- ")d'#!r"e# ") I)d" )d !he"r $r%d'c!# %**er")-& #er4"ce# & %$er!"%)# &
cl"e)! ()-e(e)! #y#!e(# )d %!her $r! %* !he ")d'#!ry.
I) !he b%4e #!'dy& I h4e h"-hl"-h!ed !he /ey re-'l!%ry $r(e!er# re-rd")- I)4e#!(e)! b)/#
l"/e De*")"!"%) %* I)4e#!(e)! 7)/#& Re-"#!r!"%) %* I)4e#!(e)! 7)/#& C%de %* C%)d'c!# *%r
I)4e#!(e)! 7)/#& Gr)! %* Cer!"*"c!e& Re-"#!r!"%) Chr-e#& C%)d"!"%)# %* I)4e#!(e)! 7)/# 9
F')c!"%) %* I)4e#!(e)! 7)/#. IPO M)-e(e)! "# !he %)e %* !he (") *')c!"%) %* I)4e#!(e)!
7)/#& #% ") !he $r%ec! I h4e !/e) L"4e c#e# l"/e Ad)" P%,er IPO 9 ICICI Sec'r"!y # I7 *%r
C#e S!'dy.
I) ICICI Sec'r"!"e# I hd $er#%)lly 4"#"!ed *%ll%,")- de$r!(e)! )d *")d %'! !he $r%ce## %*
!he"r R%le %* !he"r re#$ec!"4e de$r!(e)!.
1. M'!'l F')d O$er!"%)#
2. R"#/ O$er!"%)#
. D7C O$er!"%)#
=. H'() Re#%'rce& Le-l 9 C%($l")ce
!. Pr%d'c! Ad4"#%ry Gr%'$
>. E+'"!y d4"#%ry -r%'$
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7. Sle# Ch))le#
;. O$er!"%) C%)!r%l
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RESEARCH METHODOLOGY
The re#erch (e!h%d%l%-y '#ed *%r !he $r%ec! re$%r! "# de#cr"$!"4e )d re#erch "#
b#ed %) !he Pr"(ry )d Sec%)dry d! #%'rce#. The#e ")cl'de =ADANI P%,er
IPO> 9 O**l")e IPO 7"dd")- M)'l P'bl"#hed by ICICI Sec'r"!"e# ! !he !"(e %*
IPO *%r "!# ?r"%'# Sle# Ch))el# l"/e S'b7r%/er& Ce)!er Sle# 9 Re!"l
Ch))el& ICICI D"rec! @eb#"!e#& ICICI I)!r)e! )d rel!ed #!!"#!"c#. A# *r #
%!her ")*%r(!"%) "# c%)cer)ed I hd $er#%)lly 4"#"!ed !he de$r!(e)! 9 (e!
c%)cer)ed $e%$le ") 4r"%'# de$r!(e)!& !hey e8$l")ed !% (e !he $r%ce## )d
re#$%)#"b"l"!"e# %* !he !e(. They hel$ed (e !% ')der#!)d !he (e)")- 9
rele4)ce %* ech $r(e!er c%)#"dered ") !he $r%ec!.
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DATA COLLECTION
The %bec!"4e %* !h"# e8erc"#e "# !% -e! !he %4er4"e, %* !he I)4e#!(e)! 7)/")-
S!r'c!'re# ") I)d". I h4e c%llec!ed !he d! *r%( *%ll%,")- d! #%'rce#.
1. D! rel!ed !% Re-"#!r!"%)& F')c!"%)#& C%de %* C%)d'c!# %* I)4e#!(e)!
7)/# !/e) *r%( !he SE7I @eb#"!e )d I)4e#!(e)! 7)/")- b%%/ %* R
Mch"r'.
2. R, d! rel!ed !% Ad)" P%,er IPO )d 7"dd")- M)'l $r%ce## h# bee)
c%llec!ed *r%( !he ICICI I)!r)e! P%r!l.
. D! rel!ed !% !he ICICI C#e #!'d"e# c%llec!ed *r%( !he 4r"%'# de$r!(e)!
%* ICICI Sec'r"!"e# ,"!h !he $r"%r $er("##"%) %* de$r!(e)! Hed.
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INTRODUCTION
I)4e#!(e)! b)/# $ly #"-)"*"c)! r%le ") !he *"))c"l #er4"ce# #ec!%r. H%,e4er& I)4e#!(e)!
b)/")-& # d4"#%ry *"))c"l #er4"ce#& e(er-ed r!her l!e. F%r(l I)4e#!(e)! b)/")- #er4"ce
") I)d" %r"-")!ed ,"!h !he #e!!")- '$ %* !he I)4e#!(e)! b)/")- d"4"#"%) by !he Gr")d ly# 7)/
") BB *%r ')der!/")- ()-e(e)! %* $'bl"c "##'e )d *"))c"l c%)#'l!)cy& *%ll%,ed by %!her
*%re"-) b)/#.
P'r#')! !% !he rec%((e)d!"%)# %* !he 7)/")- C%(("##"%) ;B
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I)4e#!(e)! b)/")- "# $r!"c'lr *%r( %* b)/")- ,h"ch *"))ce# c$"!l re+'"re(e)!# %* )
e)!er$r"#e#. I)4e#!(e)! b)/")- ##"#!# # "! $er*%r(# IPO#& $r"4!e $lce(e)! )d b%)d
%**er")-#& c!# # br%/er )d crr"e# !hr%'-h (er-er# )d c+'"#"!"%)#.
7'! !he #c%$e %* #'ch #er4"ce# ,# )e"!her de*")ed )%r ,# #e! %* r'le# )d re-'l!"%)#
-%4er)")- !he( ") $lce. The *%r(!"%) %* SE7I ") BB ,# l)d(r/ ") !he e4%l'!"%) %*
I)4e#!(e)! b)/")- # $r%*e##"%)l #er4"ce ") !he c%')!ry. I)4e#!(e)! b)/")- %r-)"0!"%)#
h4e !% be ()d!%r"ly re-"#!ered ,"!h SE7I. @h"le I)4e#!(e)! b)/er# re c'rre)!ly $r%4"d")-
4r"e!y %* #er4"ce#& re-"#!r!"%) ,"!h SE7I "# re+'"red *%r ;"< C$"!l "##'e# rel!ed c!"4"!"e# 2
b%!h $re"##'ed )d $%#!"##'e& ;""< (er-er# )d c+'"#"!"%)#& )d ;"""< P%r!*%l"% M)-e(e)!.
DEFINITION
=A I)4e#!(e)! b)/er "# )y ,h% "# e)--ed ") !he b'#")e## %* "##'e ()-e(e)! e"!her by
(/")- rr)-e(e)!# re-rd")- #ell")-& b'y")- %r #'b#cr"b")- !% #ec'r"!"e# %r c!")- #
()-er1c%)#'l!)! 1 d4"#%r# %r re)der")- c%r$%r!e d4"#%ry #er4"ce ") rel!"%) !% #'ch "##'e
()-e(e)!.>
REGISTRATION OF INVESTMENT BANK
C*(/*" R)$#/'"&'#*%
I)4e#!(e)! b)/er# re+'"re c%($'l#%ry re-"#!r!"%) ,"!h !he SE7I !% crry %'! !he"r c!"4"!"e#.
They *ll ')der *%'r Re-"#!r!"%) c!e-%r"e#
C&')$*" I I)4e#!(e)! b)/er# c) crry %) )y c!"4"!y rel!ed !% "##'e ()-e(e)!& !h! "# &
!he $re$r!"%) %* $r%#$ec!'# )d %!her ")*%r(!"%) rel!")- !% !he "##'e& de!er(")")- !he
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*"))c"l #!r'c!'re& !"e '$ %* *"))c"er#& *")l ll%!(e)! %* #ec'r"!"e#& re*')d %* !he #'b#cr"$!"%)
)d l#% c! # d4"#%r#& c%)#'l!)!#& ()-er#& ')der,r"!er# %r $%r!*%l"% M)-er#.
C&')$*" II I)4e#!(e)! b)/er# c) c! # d4"#%r#& c%)#'l!)!# & c%()-er#& ')der,r"!er#
)d $%r!*%l"% M)-er#.
C&')$*" III I)4e#!(e)! b)/er# c) c! # ')der,r"!er#& d4"#%r# )d c%)#'l!)!# !% ) "##'e.
C&')$*" IV I)4e#!(e)! b)/er# c) c! %)ly # d4"#er %r c%)#'l!)! !% ) "##'e.
Th'#& %)ly c!e-%ry I I)4e#!(e)! b)/er# c%'ld c! # led ()-er# !% ) "##'e. @"!h e**ec!
*r%( Dece(ber B& BB& h%,e4er& %)ly C!e-%ry I I)4e#!(e)! b)/er# re re-"#!ered by !he
SE7I. T% crry %) c!"4"!"e# # $%r!*%l"% ()-er#& !hey h4e !% %b!") #e$r!e cer!"*"c!e %*
re-"#!r!"%) *r%( !he SE7I.
Ne! ,%r!h re+'"re(e)! *%r R)$#/'"&'#*% "# # *%ll%,2
C!e-%ry I 2 R#. 5&&&
C!e-%ry II 2 R#. 5& &
C!e-%ry III 2R#. & &
C!e-%ry I? 2 N"l
GRANT OF CERTIFICATE
The SE7I -r)!# cer!"*"c!e %* re-"#!r!"%) %) c%)#"der!"%) %* ll (!!er# !h! re rele4)! !%
!he c!"4"!"e# rel!ed !% !he I)4e#!(e)! b)/er2 ;< I)4e#!(e)! b)/er# #h%'ld l#% be b%dy
c%r$%r!e %!her !h) )%)b)/")- *"))c"l c%($)y. H%,e4er& I)4e#!(e)! b)/er ,h% h#
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bee) -r)!ed re-"#!r!"%) by !he R7I !% c! # Pr"(ry Deler (y crry %) #'ch c!"4"!y #'bec!
!% !he c%)d"!"%) !h! "! ,%'ld )%! cce$! 1 h%ld $'bl"c de$%#"!& ;b< !hey re e8$ec!ed !% h4e !he
)ece##ry ")*r#!r'c!'re l"/e de+'!e %**"ce #$ce & e+'"$(e)! )d ()$%,er !% e**ec!"4ely
d"#chr-e !he"r c!"4"!"e# ;c< !hey #h%'ld h4e e($l%yed ! le#! !,% $er#%)# ,"!h e8$er"e)ce !%
c%)d'c! I)4e#!(e)! b)/")- b'#")e## ;d< )y $er#%) d"rec!ly %r ")d"rec!ly c%))ec!ed ,"!h !he
$$l"c)!& ;e< !hey *'l*"ll !he c$"!l de+'cy re+'"re(e)! %* (")"('( )e! ,%r!h %* R#. 5
Cr%re ;*< $r!)er#& d"rec!%r# )d $r")c"$l %**"ce# #h%'ld )%! be ")4%l4ed ") )y l"!"-!"%)
c%))ec!ed ,"!h !he #ec'r"!"e# (r/e!& ,h"ch h# ) d4er#e e**ec! %) !he"r b'#")e## ;-< h4e
rec%-)"0ed $r%*e##"%)l +'l"*"c!"%) ") *"))ce & l, %r b'#")e## ()-e(e)! )d %r !he"r
re-"#!r!"%) "# ") !he ")!ere#! %* !he ")4e#!%r# )d ;h< !he $$l"c)! "# *"! )d $r%$er $er#%). The
$r%4"#"%)# %* !he SE7I cr"!er" *%r F"! )d $r%$er $er#%) re-'l!"%)# d"#c'##ed bel%, ,%'ld be
$$l"cble !% !he $$l"c)!#.
REGISTRATION CHARGES
A) I)4e#!(e)! b)/er h# !% $y !% !he SE7I
1. A$$l"c!"%) *ee %* R#.5&
2. Re-"#!r!"%) & R#. L/h# )d
. Re)e,l *ee %* R#. 5 l/h# e4ery !hree yer# *r%( !he *%'r!h yer *r%( !he d!e %* ")"!"l
re-"#!r!"%).
CONDITIONS OF REGISTRATION
The Re-"#!r!"%) 1 re)e,l %* cer!"*"c!e %* !he I)4e#!(e)! b)/er ,%'ld be #'bec! !% !he
*%ll%,")- c%)d"!"%)#2
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1. Pr"%r $$r%4l %* !he SE7I ,%'ld be )ece##ry !% c%)!")'e !% c! # I)4e#!(e)! b)/er
*!er ch)-e %* "!# #!!'#1c%)#!"!'!"%). Ch)-e %* #!!'# 1 C%)#!"!'!"%) (e)# )y ch)-e
") #!!'# 1 c%)#!"!'!"%) %* ,h!#%e4er )!'re ")cl'd")- ;< (l-(!"%)1de(er-er
1c%)#%l"d!"%) 1 )y %!her /")d %* c%r$%r!e re#!r'c!'r")- & ;b< ch)-e ") "!# ()-")-
1,h%le !"(e d"rec!%r# )d ;c< )y ch)-e ") c%)!r%l %4er !he b%dy c%r$%r!e. Ch)-e ")
c%)!r%l (e)# ;"< "* "!# #hre# re l"#!ed & ch)-e %* c%)!r%l ") !er(# %* #!"$'l!"%)# %* !he
SE7I !/e%4er Re-'l!"%)# ;""< ch)-e ") "!# c%)!r%ll")- ")!ere#! ") )y %!her c#e .
c%)!r%ll")- ")!ere#! (e)# d"rec! 1 ")d"rec! ")!ere#! !% !he e8!e)! %* ! le#! 5 $erce)! %*
4%!")- r"-h!#.
2. E)!er ")!% le-lly b")d")- c%)!rc! ,"!h !he "##'er #$ec"*y")- !he"r ('!'l d'!"e# )d
re#$%)#"b"l"!"e#
. Py !he re-"#!r!"%) 1 re)e,l *ee ") !he $re#cr"bed ())er.
=. T/e de+'!e #!e$# *%r redre##l %* ")4e#!%r# -r"e4)ce# ,"!h") %)e (%)!h %* !he
c%($l")! )d /ee$ !he SE7I ")*%r(ed b%'! !he )'(ber & )!'re )d %!her $r!"c'lr %*
#'ch c%($l")!# !%-e!her ,"!h !he ())er %* !he"r redre##l.
!. Ab"de by !he rele4)! re-'l!"%)# ')der !he SE7I Ac!.
CODE OF CUNDUCT
1. M/e ll e**%r!# !% $r%!ec! !he ")!ere#! %* ")4e#!%r#.
2. M")!") h"-h #!)drd# %* ")!e-r"!y& d"-)"!y )d *"r)e## ") !he c%)d'c! %* "!# b'#")e##.
. F'l*"ll "!# %bl"-!"%)# ") $r%($!& e!h"cl )d $r%*e##"%)l ())er.
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=. A! ll !"(e# e8erc"#e d'e d"l"-e)ce& e)#'re $r%$er cre )d e8erc"#e ")de$e)de)!
$r%*e##"%)l 'd-(e)!#
!. E)de4%'r !% e)#'re !h! ;< ")+'"r"e# *r%( ")4e#!%r# re de+'!ely del! ,"!h ;b<-r"e4)ce# %* ")4e#!%r# re redre##ed ") !"(ely )d $$r%$r"!e ())er ;c< ,here
c%($l")! "# )%! re(ed"ed $r%($!ly& !he ")4e#!%r "# d4"#ed %* )y *'r!her #!e$# ,h"ch
(y be 4"lble !% h"( ')der !he re-'l!%ry #y#!e(.
>. E)#'re !h! de+'!e d"#cl%#'re# re (de !% !he ")4e#!%r# ") !"(ely ())er ")
cc%rd)ce ,"!h !he $$l"cble re-'l!"%)# )d -'"del")e# #% # !% e)ble !he( !% (/e
bl)ced )d ")*%r(ed dec"#"%).
7. E)de4%'r !% e)#'re !h! !he ")4e#!%r# re $r%4"de ,"!h !r'e )d de+'!e ")*%r(!"%)
,"!h%'! (/")- )y ("#led")- %r e8--er!ed cl"(# %r )y ("#re$re#e)!!"%) )d re
(de ,re %* !he !!e)d)! r"#/ be*%re !/")- )y ")4e#!(e)! dec"#"%).
;. E)de4%'r !% e)#'re !h! c%$"e# %* !he $r%#$ec!'#& %**er d%c'(e)!& le!!er %* %**er %r )y
%!her rel!ed l"!er!'re "# (de 4"lble !% !he ")4e#!%r# ! !he !"(e %* "##'e %r !he %**er.
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12. P'! ") $lce (ech)"#( !% re#%l4e )y c%)*l"c! %* ")!ere#! #"!'!"%) !h! (y r"#e ") !he
c%)d'c! %* "!# b'#")e## %r ,here )y c%)*l"c! %* ")!ere#! r"#e#& #h%'ld !/e re#%)ble
#!e$# !% re#%l4e !he #(e ") ) e+'"!ble ())er.
1. M/e $$r%$r"!e d"#cl%#'re !% !he cl"e)! %* "!# $%##"ble #%'rce %r $%!e)!"l re# %*
c%)*l"c! %* d'!"e# )d ")!ere#! ,h"le c!")- # I)4e#!(e)! b)/er ,h"ch ,%'ld "($"r "!#
b"l"!y !% re)der *"r& %bec!"4e )d ')b"#ed #er4"ce#.
1=. Al,y# e)de4%r !% re)der !he be#! $%##"ble d4"ce !% !he cl"e)!# h4")- re-rd# !% !he"r
)eed#.
1!. N%! d"4'l-e !% )yb%dy e"!her %r ") ,r"!")-& d"rec!ly %r ")d"rec!ly & )y c%)*"de)!"l
")*%r(!"%) b%'! "!# cl"e)!# ,h"ch h# c%(e !% "!# /)%,led-e& ,"!h%'! !/")- $r"%r
$er("##"%) %* "!# cl"e)!#& e8ce$! ,here #'ch d"#cl%#'re# re re+'"red !% be (de ")
c%($l")ce ,"!h )y l, *%r !he !"(e be")- ") *%rce
1>. E)#'re !h! )y ch)-e ") re-"#!r!"%) #!!'# 1 )y $e)l c!"%) !/e) by !he SE7I %r )y
(!er"l ch)-e ") !he I)4e#!(e)! b)/er#’ *"))c"l #!!'#& ,h"ch (y d4er#ely **ec!
!he ")!ere#!# %* cl"e)!# 1 ")4e#!%r#& "# $r%($!ly ")*%r(ed !% !he cl"e)!# )d )y b'#")e##
re(")")- %'!#!)d")- "# !r)#*erred !% )%!her re-"#!ered ")!er(ed"ry ") cc%rd)ce
,"!h )y ")#!r'c!"%)# %* !he **ec!ed cl"e)!#.
17. N%! ")d'l-e ") )y ')*"r c%($e!"!"%)& #'ch # ,e)")- ,y !he cl"e)!# %) ##'r)ce %*
h"-her $re("'( %r d4)!-e%'# %**er $r"ce %r ,h"ch "# l"/ely !% hr( !he ")!ere#!# %*
%!her I)4e#!(e)! b)/er# %r ")4e#!%r# %r "# l"/ely !% $lce #'ch %!her I)4e#!(e)! b)/er#
") d"#d4)!-e%'# $%#"!"%) ,h"ch c%($e!")- *%r %r e8ec'!")- )y ##"-)(e)!.
1;. M")!") r(# le)-!h rel!"%)#h"$ be!,ee) "!# I)4e#!(e)! b)/")- c!"4"!y )d )y %!her
c!"4"!y.
17 | I n v e s t m e n t B a n k i n g i n I n d i a
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1
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2!. Pr%4"de de+'!e *reed%( )d $%,er# %* "!# c%($l")ce %**"cer *%r !he e**ec!"4e
d"#chr-e %* h"# d'!"e#.
2>. De4el%$ "!# %,) ")!er)l c%de %* c%)d'c! "!# ")!er)l %$er!"%)# )d ly")- d%,) "!##!)drd# %* $$r%$r"!e c%)d'c! *%r "!# e($l%yee )d %**"cer# ") crry")- %'! !he"r d'!"e#.
S'ch c%de (y e8!e)d !% !he (")!e))ce %* $r%*e##"%)l e8celle)ce )d #!)drd#&
")!e-r"!y& c%)*"de)!"l"!y& %bec!"4"!y& 4%"d)ce %r re#%l'!"%) %* c%)*l"c! %* ")!ere#!&
d"#cl%#'re %* #hreh%ld")- )d ")!ere#! e!c.
27. E)#'re !h! -%%d c%r$%r!e $%l"c"e# )d c%r$%r!e -%4er))ce re ") $lce.
2;. E)#'re !h! )y $er#%) "! e($l%yee# %r $$%")!# !% c%)d'c! b'#")e## "# *"! )d $r%$er )d
%!her,"#e +'l"*"ed !% c! ") !he c$c"!y #% e($l%yed %r $$%")!ed.
2
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OFFERING & SERVICES OF INVESTMENT BANKS
P"*6)3' C*(%/)#%$
Pr%ec! c%')#el")- ")cl'de# $re$r!"%) %* $r%ec! re$%r!#& dec"d")- '$%) !he *"))c")- $!!er) !%
*"))ce !he c%#! %* !he $r%ec! )d $$r"#")- !he $r%ec! re$%r! ,"!h !he *"))c"l ")#!"!'!"%)# %r
b)/#. I! l#% ")cl'de# *"ll")- '$ %* $$l"c!"%) *%r(# ,"!h rele4)! ")*%r(!"%) *%r %b!")")-
*')d# *r%( *"))c"l ")#!"!'!"%)# )d %b!")")- -%4er)(e)! $$r%4l.
I//() M&%&$))%'
M)-e(e)! %* "##'e ")4%l4e# (r/e!")- %* c%r$%r!e #ec'r"!"e# 4"0. e+'"!y #hre#& $re*ere)ce
#hre# )d debe)!'re# %r b%)d# by %**er")- !he( !% $'bl"c. I)4e#!(e)! b)/# c! # )
")!er(ed"ry ,h%#e (") %b "# !% !r)#*er c$"!l *r%( !h%#e ,h% %,) "! !% !h%#e ,h% )eed "!.
A*!er !/")- c!"%) # $er SE7I -'"del")e#& !he I)4e#!(e)! b)/er rr)-e# (ee!")- ,"!h
c%($)y re$re#e)!!"4e# )d d4er!"#")- -e)!# !% *")l"0e rr)-e(e)!# rel!")- !% d!e %*
%$e)")- )d cl%#")- %* "##'e& re-"#!r!"%) %* $r%#$ec!'#& l')ch")- $'bl"c"!y c($"-) )d *"8")-
d!e %* b%rd (ee!")- !% $$r%4e )d #"-) $r%#$ec!'# )d $## !he )ece##ry re#%l'!"%)#. Pr"c")-
%* "##'e# "# d%)e by !he c%($)"e# ") c%)#'l!)! ,"!h !he I)4e#!(e)! b)/er#.
U%)""#'#%$ *+ P(#3 I//()
U)der,r"!")- "# -'r)!ee -"4e) by !he ')der,r"!er !h! ") !he e4e)! %* ')der #'b#cr"$!"%)& !he
(%')! ')der,r"!!e) ,%'ld be #'b#cr"bed by h"(. 7)/#1I)4e#!(e)! b)/")- #'b#"d"r"e# c))%!
')der,r"!e (%re !h) 5J %* )y "##'e.
M&%&$)"/, C*%/('&%'/ *" A@#/)"/ '* ') I//()
The ()-er# !% !he "##'e ##"#! ") !he dr*!")- %* $r%#$ec!'#& $$l"c!"%) *%r(# )d c%($le!"%)
%* *%r(l"!"e# ')der !he C%($)"e# Ac!& $$%")!(e)! %* Re-"#!rr *%r del")- ,"!h #hre
$$l"c!"%)# )d !r)#*er )d l"#!")- %* #hre# %* !he c%($)y %) !he #!%c/ e8ch)-e. C%($)"e#
20 | I n v e s t m e n t B a n k i n g i n I n d i a
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c) $$%")! %)e %r (%re -e)c"e# # ()-er# !% !he "##'e.
P*"'+*#* M&%&$))%'
P%r!*%l"% re*er# !% ")4e#!(e)! ") d"**ere)! /")d# %* #ec'r"!"e# #'ch # #hre#& debe)!'re# %r b%)d#
"##'ed by d"**ere)! c%($)"e# )d -%4er)(e)! #ec'r"!"e#. P%r!*%l"% ()-e(e)! re*er# !%
(")!")")- $r%$er c%(b")!"%)# %* #ec'r"!"e# ") ())er !h! !hey -"4e (8"('( re!'r) ,"!h
(")"('( r"#/.
A@#/*" S)"@#3) R)&'#%$ '* M)"$)"/ &% T&)*@)"/
A (er-er "# c%(b")!"%) %* !,% c%($)"e# ")!% #")-le c%($)y ,here %)e #'r4"4e# )d %!her
l%#e# "!# c%r$%r!e e8"#!e)ce. A !/e%4er "# !he $'rch#e by %)e c%($)y c+'"r")- c%)!r%ll")-
")!ere#! ") !he #hre c$"!l %* )%!her e8"#!")- c%($)y. I)4e#!(e)! b)/er# re !he ("ddle(e)
") #e!!")- )e-%!"!"%) be!,ee) !he !,% c%($)"e#.
O++ S*") F#%&%3)
The I)4e#!(e)! b)/er# hel$ !he"r cl"e)!# ") !he *%ll%,")- re# ")4%l4")- *%re"-) c'rre)cy.
;< L%)- !er( *%re"-) c'rre)cy l%)#
;b< K%")! ?e)!'re# br%d
;c< F"))c")- e8$%r!# )d "($%r!#
;d< F%re"-) c%llb%r!"%) rr)-e(e)!#
N*%-")/#)%' I%@)/')%'
The #er4"ce# %* I)4e#!(e)! b)/er ")cl'de# ")4e#!(e)! d4"#%ry #er4"ce# !% NRI ") !er(# %*
"de)!"*"c!"%) %* ")4e#!(e)! %$$%r!')"!"e#& #elec!"%) %* #ec'r"!"e#& ")4e#!(e)! ()-e(e)!& )d
%$er!"%)l #er4"ce# l"/e $'rch#e )d #le %* #ec'r"!"e#.
L*&% S%#3&'#*%
L%) #y)d"c!"%) re*er# !% ##"#!)ce re)dered by I)4e#!(e)! b)/er# !% -e! (")ly !er( l%)#
21 | I n v e s t m e n t B a n k i n g i n I n d i a
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*%r $r%ec!#. S'ch l%)# (y be %b!")ed *r%( #")-le de4el%$(e)! *"))ce ")#!"!'!"%) %r
#y)d"c!e %r c%)#%r!"'(. I)4e#!(e)! b)/er# hel$ c%r$%r!e cl"e)!# !% r"#e #y)d"c!ed l%)#
*r%( b)/# %r *"))c"l ")#!"!'!"%)#.
C*"*"&') C*(%/)#%$
C%r$%r!e c%')#el")- c%4er# !he e)!"re *"eld %* I)4e#!(e)! b)/")- c!"4"!"e# 4"0. $r%ec!
c%')#el")-& c$"!l re#!r'c!'r")-& $'bl"c "##'e ()-e(e)!& l%) #y)d"c!"%)& ,%r/")- c$"!l&
*"8ed de$%#"!& le#e *"))c")- cce$!)ce cred"!& e!c.
R&%#%$ *+ M)"3&%' B&%#%$ #% I%#&2
M)"3&%' B&%)" OE FSS PS M INN
ICICI Sec'r"!"e# . . . 3. .3
ID7I . 3. .5 . .
S7I C$# .. 3.B .. . 5.
DPS . 5. . . 5.3
IFCI . 5. . . .3
7)/ %* 7r%d . .5 . . .
Krd")e Fle(")- 5. . 5.B 5. 5.5
KM F"))ce . .5 5.5 5.B 5.
ENAM .3 . . .3 .
PN7 C$# . . . . .
N*') OE O@)"& E3))%3) FSS F#%&%3#& S*(%%)// PS (&#' P"*(3'S)"@#3)
M (&#' M&%&$))%' INN I%%*@&'#@)%)//.
ORGANISATIONAL STRUCTURE – IB
22 | I n v e s t m e n t B a n k i n g i n I n d i a
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F"*%' O++#3) M#) O++#3) B&3 O++#3)
I)4e#!(e)! 7)/")- R"#/ O$er!"%)#
Sle# 9 Trd")- F"))ce Tech)%l%-y
Re#erch C%($l")ce
C'#!%d")
I)4e#!(e)! M-(!
M% &3'#@#'#)/ &% (%#'/
A) ")4e#!(e)! b)/ "# #$l"! ")!% !he #%clled *r%)! %**"ce& ("ddle %**"ce& )d bc/ %**"ce.
I)4e#!(e)! b)/# %**er #ec'r"!y !% b%!h c%r$%r!"%)# "##'")- #ec'r"!"e# )d ")4e#!%r# b'y")-
#ec'r"!"e#. F%r c%r$%r!"%)# ")4e#!(e)! b)/er# %**er ")*%r(!"%) %) ,he) )d h%, !% $lce !he"r
#ec'r"!"e# ") !he (r/e!. The c%r$%r!"%)# d% )%! h4e !% #$e)d %) re#%'rce# ,"!h ,h"ch "! "# )%!
e+'"$$ed. T% !he ")4e#!%r& !he re#$%)#"ble ")4e#!(e)! b)/er %**er# $r%!ec!"%) -")#! ')#*e
#ec'r"!"e#. The %**er")- %* *e, bd "##'e# c) c'#e #er"%'# l%## !% "!# re$'!!"%)& )d he)ce l%##
%* b'#")e##. There*%re& ")4e#!(e)! b)/er# $ly 4ery "($%r!)! r%le ") "##'")- )e, #ec'r"!y
%**er")-#
F"*%' *++#3)
1. I%@)/')%' &%#%$ "# !he !rd"!"%)l #$ec! %* !he ")4e#!(e)! b)/# ,h"ch l#% ")4%l4e#
hel$")- c'#!%(er# r"#e *')d# ") !he c$"!l (r/e!# )d d4"#e %) (er-er# )d
c+'"#"!"%)#. I)4e#!(e)! b)/")- (y ")4%l4e #'b#cr"b")- ")4e#!%r# !% #ec'r"!y
"##')ce& c%%rd")!")- ,"!h b"dder#& %r )e-%!"!")- ,"!h (er-er !r-e!. A)%!her !er( *%r
!he ")4e#!(e)! b)/")- d"4"#"%) "# c%r$%r!e *"))ce& )d "!# d4"#%ry -r%'$ "# %*!e)
!er(ed (er-er# )d c+'"#"!"%)# ;M9A
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-r%'$# *%c'# %) #$ec"*"c ")d'#!ry #'ch # hel!hcre& ")d'#!r"l#& %r !ech)%l%-y& )d
(")!") rel!"%)#h"$# ,"!h c%r$%r!"%)# ,"!h") !he ")d'#!ry !% br")- ") b'#")e## *%r
b)/. Pr%d'c! c%4er-e -r%'$# *%c'# %) *"))c"l $r%d'c!#& #'ch # (er-er# )d
c+'"#"!"%)#& le4er-ed *"))ce& e+'"!y& )d h"-h-rde deb! )d -e)erlly ,%r/ )d
c%llb%r!e ,"!h ")d'#!ry -r%'$# ") !he (%re ")!r"c!e )d #$ec"l"0ed )eed# %* cl"e)!.
1. S&)/ &% '"&#%$2 O) behl* %* !he b)/ )d "!# cl"e)!#& !he $r"(ry *')c!"%) %* lr-e
")4e#!(e)! b)/ "# b'y")- )d #ell")- $r%d'c!#. I) (r/e! (/")-& !rder# ,"ll b'y )d
#ell *"))c"l $r%d'c!# ,"!h !he -%l %* (/")- ) ")cre(e)!l (%')! %* (%)ey %) ech
!rde. Sales "# !he !er( *%r !he ")4e#!(e)! b)/# #le# *%rce& ,h%#e $r"(ry %b "# !% cll
%) ")#!"!'!"%)l )d h"-h)e!,%r!h ")4e#!%r# !% #'--e#! !rd")- "de# ;%) c4e! e($!%r
b#"#< )d !/e %rder#. Sle# de#/# !he) c%((')"c!e !he"r cl"e)!# %rder# !% !he
$$r%$r"!e !rd")- de#/#& ,h% c) $r"ce )d e8ec'!e !rde#& %r #!r'c!'re )e, $r%d'c!#
!h! *"! #$ec"*"c )eed. Structuring h# bee) rel!"4ely rece)! c!"4"!y # der"4!"4e#
h4e c%(e ")!% $ly& ,"!h h"-hly !ech)"cl )d )'(er!e e($l%yee# ,%r/")- %) cre!")-
c%($le8 #!r'c!'red $r%d'c!# ,h"ch !y$"clly %**er ('ch -re!er (r-")# )d re!'r)# !h)
')derly")- c#h #ec'r"!"e#. Strategists d4"#e e8!er)l # ,ell # ")!er)l cl"e)!# %) !he
#!r!e-"e# !h! c) be d%$!ed ") 4r"%'# (r/e!#. R)-")- *r%( der"4!"4e# !% #$ec"*"c
")d'#!r"e#& #!r!e-"#!# $lce c%($)"e# )d ")d'#!r"e# ") +')!"!!"4e *r(e,%r/ ,"!h
*'ll c%)#"der!"%) %* !he (cr%ec%)%("c #ce)e. Th"# #!r!e-y %*!e) **ec!# !he ,y !he
*"r( ,"ll %$er!e ") !he (r/e!& !he d"rec!"%) "! ,%'ld l"/e !% !/e ") !er(# %* "!#
$r%$r"e!ry )d *l%, $%#"!"%)#& !he #'--e#!"%)# #le#$er#%)# -"4e !% cl"e)!#& # ,ell # !he
,y #!r'c!'re# cre!e )e, $r%d'c!#. 7)/# l#% ')der!/e r"#/ !hr%'-h $r%$r"e!ry
!rd")-& d%)e by #$ec"l #e! %* !rder# ,h% d% )%! ")!er*ce ,"!h cl"e)!# )d !hr%'-h
$r")c"$l r"#/& r"#/ ')der!/e) by !rder *!er he b'y# %r #ell# $r%d'c! !% cl"e)! )d
24 | I n v e s t m e n t B a n k i n g i n I n d i a
http://en.wikipedia.org/w/index.php?title=Sales_and_trading&action=edit&redlink=1http://en.wikipedia.org/wiki/Market_makerhttp://en.wikipedia.org/wiki/Market_makerhttp://en.wikipedia.org/wiki/Caveat_emptorhttp://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Proprietary_tradinghttp://en.wikipedia.org/wiki/Proprietary_tradinghttp://en.wikipedia.org/wiki/Proprietary_tradinghttp://en.wikipedia.org/w/index.php?title=Sales_and_trading&action=edit&redlink=1http://en.wikipedia.org/wiki/Market_makerhttp://en.wikipedia.org/wiki/Caveat_emptorhttp://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Proprietary_tradinghttp://en.wikipedia.org/wiki/Proprietary_trading
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d%e# )%! hed-e h"# !%!l e8$%#'re. 7)/# #ee/ !% (8"("0e $r%*"!b"l"!y *%r -"4e)
(%')! %* r"#/ %) !he"r bl)ce #hee!. The )ece##"!y *%r )'(er"cl b"l"!y ") #le# )d
!rd")- h# cre!ed %b# *%r $hy#"c# )d (!h Ph.D.# ,h% c! # +')!"!!"4e )ly#!#.
1. R)/)&"3 "# !he d"4"#"%) ,h"ch re4"e,# c%($)"e# )d ,r"!e# re$%r!# b%'! !he"r
$r%#$ec!#& %*!e) ,"!h b'y %r #ell r!")-#. @h"le !he re#erch d"4"#"%) -e)er!e# )%
re4e)'e& "!# re#%'rce# re '#ed !% ##"#! !rder# ") !rd")-& !he #le# *%rce ") #'--e#!")-
"de# !% c'#!%(er#& )d ")4e#!(e)! b)/er# by c%4er")- !he"r cl"e)!#. There "# $%!e)!"l
c%)*l"c! %* ")!ere#! be!,ee) !he ")4e#!(e)! b)/ )d "!# )ly#"# ") !h! $'bl"#hed )ly#"#
c) **ec! !he $r%*"!# %* !he b)/. There*%re ") rece)! yer# !he rel!"%)#h"$ be!,ee)
")4e#!(e)! b)/")- )d re#erch h# bec%(e h"-hly re-'l!ed re+'"r")- Ch")e#e ,ll
be!,ee) $'bl"c )d $r"4!e *')c!"%)#.
1. C(/'* &% &$)%3 /)"@#3)/ "# !he d"4"#"%) ,h"ch $r%4"de# c#h ()-e(e)!& le)d")-&
)d #ec'r"!"e# br%/er-e #er4"ce# !% ")#!"!'!"%)#. Pr"(e br%/er-e ,"!h hed-e *')d# h#
bee) ) e#$ec"lly $r%*"!ble b'#")e##& # ,ell # r"#/y& # #ee) ") !he r') %) !he b)/
,"!h 7er S!er)# ") .
1. I%@)/')%' &%&$))%' "# !he $r%*e##"%)l ()-e(e)! %* 4r"%'# #ec'r"!"e# ;#hre#&
b%)d#& e!c.< )d %!her ##e!# ;e.-. rel e#!!e
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M#) *++#3)
1. R#/ &%&$))%' ")4%l4e# )ly0")- !he (r/e! )d cred"! r"#/ !h! !rder# re !/")-
%)!% !he bl)ce #hee! ") c%)d'c!")- !he"r d"ly !rde#& )d #e!!")- l"("!# %) !he (%')! %*
c$"!l !h! !hey re ble !% !rde ") %rder !% $re4e)! bd !rde# h4")- de!r"(e)!l
e**ec! !% de#/ %4erll. A)%!her /ey M"ddle O**"ce r%le "# !% e)#'re !h! !he b%4e
(e)!"%)ed ec%)%("c r"#/# re c$!'red cc'r!ely ;# $er -ree(e)! %* c%((erc"l !er(#
,"!h !he c%')!er$r!y
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B&3 *++#3)
1. O)"&'#*%/ ")4%l4e d!chec/")- !rde# !h! h4e bee) c%)d'c!ed& e)#'r")- !h! !hey
re )%! err%)e%'#& )d !r)#c!")- !he re+'"red !r)#*er#. @h"le #%(e bel"e4e !h!
%$er!"%)# $r%4"de# !he -re!e#! %b #ec'r"!y )d !he ble/e#! creer $r%#$ec!# %* )y
d"4"#"%) ,"!h") ) ")4e#!(e)! b)/ & ()y b)/# h4e %'!#%'rced %$er!"%)#. I! "#&
h%,e4er& cr"!"cl $r! %* !he b)/. D'e !% ")cre#ed c%($e!"!"%) ") *"))ce rel!ed
creer#& c%lle-e de-ree# re )%, ()d!%ry ! (%#! T"er ")4e#!(e)! b)/#. citation needed A
*"))ce de-ree h# $r%4ed #"-)"*"c)! ") ')der#!)d")- !he de$!h %* !he del# )d
!r)#c!"%)# !h! %cc'r cr%## ll !he d"4"#"%)# %* !he b)/.
1. T)3%**$ re*er# !% !he ")*%r(!"%) !ech)%l%-y de$r!(e)!. E4ery (%r ")4e#!(e)!
b)/ h# c%)#"derble (%')!# %* ")h%'#e #%*!,re& cre!ed by !he !ech)%l%-y !e(&
,h% re l#% re#$%)#"ble *%r !ech)"cl #'$$%r!. Tech)%l%-y h# ch)-ed c%)#"derbly ")
!he l#! *e, yer# # (%re #le# )d !rd")- de#/# re '#")- elec!r%)"c !rd")-. S%(e
!rde# re ")"!"!ed by c%($le8 l-%r"!h(# *%r hed-")- $'r$%#e#
CHINESE WALL CONCEPT IN INVESTMENT BANK
27 | I n v e s t m e n t B a n k i n g i n I n d i a
http://en.wikipedia.org/wiki/Back_officehttp://en.wikipedia.org/wiki/Investment_bank#cite_note-3http://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Softwarehttp://en.wikipedia.org/wiki/Softwarehttp://en.wikipedia.org/wiki/Technical_supporthttp://en.wikipedia.org/wiki/Electronic_tradinghttp://en.wikipedia.org/wiki/Algorithmshttp://en.wikipedia.org/wiki/Algorithmshttp://en.wikipedia.org/wiki/Hedge_(finance)http://en.wikipedia.org/wiki/Back_officehttp://en.wikipedia.org/wiki/Investment_bank#cite_note-3http://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Softwarehttp://en.wikipedia.org/wiki/Technical_supporthttp://en.wikipedia.org/wiki/Electronic_tradinghttp://en.wikipedia.org/wiki/Algorithmshttp://en.wikipedia.org/wiki/Hedge_(finance)
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An investment ank !an a"s# e s$"it int# $rivate and $u"i! %un!ti#ns &it' a
('inese &a"" &'i!' se$arates t'e t t# $revent in%#rmati#n %r#m !r#ssing) *'e
$rivate areas #% t'e ank dea" &it' $rivate insider in%#rmati#n t'at ma+ n#t e
$u"i!"+ dis!"#sed, &'i"e t'e $u"i! areas su!' as st#!k ana"+sis dea" &it' $u"i!
in%#rmati#n)
28 | I n v e s t m e n t B a n k i n g i n I n d i a
http://en.wikipedia.org/wiki/Chinese_wallhttp://en.wikipedia.org/wiki/Insider_informationhttp://en.wikipedia.org/wiki/Chinese_wallhttp://en.wikipedia.org/wiki/Insider_information
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IPO MANAGEMENT
29 | I n v e s t m e n t B a n k i n g i n I n d i a
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BRIEF ABOUT THE ISSUER
I! "# $%,er $r%ec! de4el%$(e)! c%($)y& ,h"ch "# de4el%$")-& )d ,"ll %$er!e )d (")!")&
$%,er $r%ec!# ") I)d". They h4e *%'r !her(l $%,er $r%ec!# ')der 4r"%'# #!-e# %*
de4el%$(e)!& ,"!h c%(b")ed ")#!lled c$c"!y %* & M@. I) dd"!"%)& !hey re l#%
$l))")- !% de4el%$ !,% $%,er $r%ec!# ,"!h c%(b")ed ")#!lled c$c"!y %* 3&3 M@. They
")!e)d !% #ell !he $%,er -e)er!ed *r%( !he#e $r%ec!# ')der c%(b")!"%) %* l%)-!er( $%,er
$'rch#e -ree(e)!# !% ")d'#!r"l )d #!!e%,)ed c%)#'(er# )d %) I)4e#!(e)! b#"#. They re
$r! %* !he Ad)" Gr%'$& led")- b'#")e## -r%'$ ") I)d". Ad)" E)!er$r"#e L"("!ed& !he"r
Pr%(%!er& "# !he *l-#h"$ c%($)y %* !he Ad)" Gr%'$& ,"!h !%!l re4e)'e# %* R#. B&B.
("ll"%) *%r !he *"#cl yer . They bel"e4e AEL ,# %)e %* !he lr-e#! !rder# %* c%l ") I)d"
*%r !he !hree yer# $er"%d e)ded Mrch 3& & ,"!h c%l (")")- r"-h!# b%!h ") !he ")!er)!"%)l
)d d%(e#!"c (r/e!#& )d cc%rd")- !% Ce)!rl Elec!r"c"!y Re-'l!%ry C%(("##"%)& *%r !he !hree
yer# $er"%d e)ded Mrch 3& & AEL ,# %)e %* !he lr-e#! $%,er !rder#& by 4%l'(e& ")
I)d". @"!h !he c%(("##"%)")- %* !he"r $%,er $r%ec!#& !he Ad)" Gr%'$ ,"ll be 4er!"clly
")!e-r!ed ") $%,er #ec!%r 4l'e ch") !hr%'-h $re#e)ce ") rel!ed c!"4"!"e# #'ch # c%l (")")-&
c%l !rd")-& #h"$$")-& $%,er -e)er!"%)& $%,er !r)#("##"%) )d $%,er !rd")-. A)%!her Ad)"
Gr%'$ c%($)y& M')dr P%r! )d S$ec"l Ec%)%("c %)e L"("!ed ;=MPSEL>< ! M')dr )d r"l,y l")e be!,ee) M')dr )d Ad"$'r led")- !% #!r%)- #y)er-"e#
,"!h !he"r $r%ec!# be")- #e! '$ ") cl%#e 4"c")"!y. I) dd"!"%)& !he Ad)" Gr%'$ l#% h# %$er!"%)#
") %!her ")d'#!r"e#& ")cl'd")- c%((%d"!"e# !rd")-& rel e#!!e de4el%$(e)!& -r% $r%ce##")- )d
l%-"#!"c#. They e8$ec! !h! !hey ,"ll be)e*"! *r%( Ad)" Gr%'$’# #!r!e-y %* 4er!"cl ")!e-r!"%)&
,h"ch -"4e# !he( -re!er c%)!r%l %4er 4r"%'# c!"4"!"e# %* $%,er -e)er!"%) )d !rd")-.
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OBJECTIVE OF THE ISSUE
T% $r! *"))ce !he c%)#!r'c!"%) )d de4el%$(e)! %* M')dr Ph#e I? P%,er Pr%ec! *%r &B
M@. F')d")- e+'"!y c%)!r"b'!"%) ") %'r #'b#"d"ry Ad)" P%,er Mhr#h!r L"("!ed !% $r!
*"))ce !he c%)#!r'c!"%) )d de4el%$(e)! c%#! %* $%,er $r%ec! *%r &B M@ ! T"r%d&
Mhr#h!r )d Ge)erl C%r$%r!e P'r$%#e#
INDICATIVE ISSUE STRUCTURE
I##'e %* E+'"!y Shre# 3&5&3 E+'"!y Shre#
E($l%yee Re#er4!"%) P%r!"%)&& E+'"!y Shre#
Ne! I##'e !% !he P'bl"c B3&5&3 E+'"!y Shre#
QI7 P%r!"%) A!le#! &B&B E+'"!y Shre#
A4"lble *%r MF O)ly &B&5 E+'"!y Shre#
7l)ce %* QI7 P%r!"%) ;A*!er Ded'c!")- MF < &3&5 E+'"!y Shre#
N%)I)#!"!'!"%)l P%r!"%) U$!% B&35&3 E+'"!y Shre#
Re!"l P%r!"%) U$!% &B5&B E+'"!y Shre#
The C%($)y (y c%)#"der $r!"c"$!"%) by A)ch%r I)4e#!%r# *%r '$!% 5&5&3
E+'"!y Shre# ") cc%rd)ce ,"!h $$l"cble SE7I G'"del")e#
PRICE BAND R#. B1 !% R#. 1 $er e+'"!y #hre
BID LOT 5 E+'"!y Shre# 9 ") ('l!"$le# !here%*
INDICATIVE TIMING OF ISSUE
ISSUE OPEN DATE 2 KULB
ISSUE CLOSE DATE 2 3KULB
BOOK RUNNING LEAD MANAGER
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SHAREHOLDING PATTERN 4 POST ISSUE 5
Pr%(%!er )d Pr%(%!er Gr%'$ 3.5J
3" P%,er I)4e#!(e)!# A L"("!ed 3.3J
Ad"#hree Trdel")/# Pr"4!e L"("!ed 3.3J
C$"!l Trde )d I)4e#!(e)! Pr"4!e L"("!ed .3J
E($l%yee# .3J
O!her .B3J
P'bl"c 3.J
BROKERAGE
CATEGOR9 BROKERAGE
RETAIL IN?ESTOR .35J O) A(! All%!!ed
HNI 9 N%) I)#!"!'!"%)l I)4e#!%r .J %) A(! All%!!ed
QI7 N"l
33 | I n v e s t m e n t B a n k i n g i n I n d i a
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ONE ?ISE IPO SUBSCRIPTION ON 2;TH JUL9 200< ICICI SECURITIES LTD
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1.
OFFLINE 7IDDING URL MODULE MANAUAL
D&'& E%'"
1. Cl"c/ %) !he URL ''172.1>.!.1
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2. Selec! IPO O**l")e
36 | I n v e s t m e n t B a n k i n g i n I n d i a
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. Selec! =Plce 7"d#>
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=. Se! L%! S"0e ;e)!er < )d cl"c/ %) F"8.
!. F%ll%,")- Scree) ,%'ld $$er. Th"# ,%'ld be !he $-e ")!% ,h"ch !he A$$l"c!"%) de!"l# h4e
!% be ")$'!!ed.
38 | I n v e s t m e n t B a n k i n g i n I n d i a
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< Selec! IPO Ple#e #elec! Ad)" P%,er L"("!ed ADAPO@
b< A$$l"c!"%) N'(ber Th"# "# ()d!%ry *"eld ,"!h%'! ,h"ch !he e)!ry ,"ll )%! be #4ed. N'(ber
$$er")- %) !%$ r"-h! h)d c%r)er %* !he 7AF;7"d c'( A$$l"c!"%) F%r(
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I) DP N(e cre !% be e8erc"#ed !h! )% #$ec"l chrc!er l"/e *'ll #!%$& c%((& hy$he)&
($er#)d "# ")cl'ded. ;=. & 9
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. The *%ll%,")- #cree) ,%'ld $$er. Cl"c/ =O:> !% re!'r) !% !he d! e)!ry #cree)
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=. A*!er ")$'!!")- !he d! "* !here ,%'ld be ) err%r !he *%ll%,")- $r%($! ,%'ld $$er. 7r)ch c)
e"!her $r%ceed by #elec!")- O/ %r c) rec!"*y !he err%r by cl"c/")- %) c)cel.
I* br)ch cl"c/# %) O:& !he rec%rd ,%'ld be #4ed
I* br)ch cl"c/# %) C)cel& !hey c) rec!"*y !he e)!ry !he) )d !here )d !he) #4e !he rec%rd
B. A*!er !he b"dd")- "# c%($le!ed !he *%r( #h%'ld be #'b("!!ed ! !he )ere#! c%llec!")- b)/.
42 | I n v e s t m e n t B a n k i n g i n I n d i a
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ICICI SECURITIES
ICICI Sec'r"!"e# "# !he lr-e#! e+'"!y h%'#e 9 SE7I Re-"#!ered C!e-%ry I I)4e#!(e)! 7)/# ")
!he c%')!ry $r%4"d")- e)d !% e)d #%l'!"%) !hr%'-h !he lr-e#! )%)b)/")- d"#!r"b'!"%) ch))el #%
# !% *'l*"ll !he )eed# %* re!"l )d c%r$%r!e cl"e)!#. I! h# d%("))! $%#"!"%) ") "!# c%re
43 | I n v e s t m e n t B a n k i n g i n I n d i a
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#e-(e)! %* "!# %$er!"%)# C%r$%r!e F"))ce ")cl'd")- C$"!l Mr/e! Ad4"#%ry #er4"ce# &
")#!"!'!"%)l e+'"!"e# )d *"))c"l $r%d'c! d"#!r"b'!"%)
BOARD OF DIRECTOR
!. M#. Ch)d :%cchr Ch"r$er#%)
>. Mr. :e!) P!el
7. Mr.Nre)dr M'r/'(b"
;. Mr.Udy Ch"!le
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GLOBAL PRESENCE
ICICI Sec'r"!"e# h# $re#e)ce ") *%ll%,")- C%')!r"e#
1. I)d"
2. S")-$%re
. USA
=. O()
CORE BUSINESS
I%/'#'('#*%& B(/#%)//
E(#' C&#'& M&")'
ICICI Sec'r"!"e# h# bee) ! !he *%re*r%)! %* C$"!l Mr/e! d4"#%ry *%r #e4erl decde# )d h# bee)
")4%l4ed ") (%#! %* !he (%r b%%/b'"ld")- )d *"8ed $r"ce $'bl"c e+'"!y "##')ce. I! "# !he led")-
')der,r"!er# %* e+'"!y )d e+'"!y l")/ed %**er")-. E+'"!y $r%d'c! ")cl'de# IPO& R"-h!# %**er")-&
C%)4er!"ble %**er")-# )d $r"4!e $lce(e)! )d ")!er)!"%)l %**er")-#. ICICI Sec'r"!"e# h# #'cce##*'lly
h)dled E+'"!y P'bl"c I##'e#& B3 R"-h! I##'e# )d O$e) %**er#
M)"$)" 8 A3(#/#'#*%
ICICI Sec'r"!"e# "# (%)-#! !he *"r#! ")4e#!(e)! b)/# !% *%r( ded"c!ed M9A $rc!"ce )d $r%4"de
"))%4!"4e )d c'#!%("0ed #%l'!"%) !% ch"e4e !he %bec!"4e# %* cl"e)!#.
45 | I n v e s t m e n t B a n k i n g i n I n d i a
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ICICI Sec'r"!"e# $r%4"de b'y#"de )d #ell#"de d4"#%ry #er4"ce# # $r! %* M9A d4"#%ry %**er")-#
")cl'd")- K?& Mer-er#& )d c+'"#"!"%)#.
P"#@&') E(#'
ICICI Sec'r"!"e# h# ded"c!ed $rc!"ce !% ##"#! c%($)"e# ,"!h c$"!l (%b"l"0!"%) !hr%'-h $r"4!e
e+'"!y 1 ?e)!'re C$"!l r%'!e cr%## !he"r l"*e cycle. ICICI hel$# c%($)"e# !% r"#e c$"!l d'r")- !he
#eed & -r%,!h )d e8$)#"%) $h#e#.
R)' B(/#%)//
R)' E(#'#)/ 4ICICI#")3'.3*5
ICICId"rec!.c%( %**er# c%)4e)"e)! )d e#y !% '#e $l!*%r( !% ")4e#! ") e+'"!y )d 4r"%'# %!her
$r%d'c!#. 7'y")- )d #ell")- #hre# re '#! cl"c/ ,y. I! h# 3") c%)ce$! e)ble# c'#!%(er# !% !"e ")
!he"r #4")-# b)/& de(! )d br%/er-e cc%')!# elec!r%)"clly )d #e(le##ly. ICICI l#% %**er# cce##
!% c%($rehe)#"4e re#erch ")*%r(!"%)& #!%c/ $"c/#& ('!'l *')d#& rec%((e)d!"%)# e!c. I) 3 ")
c%)ce$!& %)ce re+'e#! "# $lced *%r ")4e#!")- ") $r!"c'lr *')d& !here re )% ()'l $r%ce##e#
")4%l4ed. 7)/ *')d# re '!%(!"clly deb"!ed %r cred"!ed ,h"le #"('l!)e%'#ly cred"!")- %r deb"!")- !he
')"! h%ld")-#. Cl"e)! c) h4e c%)!r%l %) "!# %,) ")4e#!(e)!. ICICI D"rec! "# !he *"r#! br%/er ") ")d" !%
")!r%d'ce D"-"!l S"-)ed C%)!rc! N%!e !% "!# c'#!%(er
ICICI D#")3' S()" S'*")
ICICI D"rec! h# rece)!ly l')ched !he c%)ce$! %* S'$er S!%re ") I)d"& The#e #!%re# %**er# 4r"e!y %*
*"))c"l $r%d'c!# )d #er4"ce# ')der %)e r%%*. I! h# l#% #!r!ed *"))c"l $l))")- #er4"ce# ! !he#e
#!%re#. ICICI Re!"l c'#!%(er# # ,ell # Ne, C'#!%(er ;Pr%#$ec!#
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#!%re *%r *"))c"l $r%d'c!# l"/e 3 ") & E+'"!"e#& MF& IPO& L"*e )d Ge)erl I)#'r)ce& HL& PL )d F"8ed
I)c%(e $r%d'c!#. The #!%re# l#% c%)d'c! $er"%d"c !r")")- #e##"%) %) C$"!l Mr/e!.
A3'#@) T"&)" S)"@#3)/ 4ATS5
ATS "# %**l")e $l!*%r( *%r 7%r) Trder#& The cl"e)! ,h% del# (%re !h) R#. 5 "# !re!ed #
Ac!"4e Trder . A# c'#!%(er %* ATS & ICICI $r%4"de Ded"c!ed Rel!"%)#h"$ M)-er & S$ec"l Re#erch
Te( !% ATS C'#!%(er.
S( B"*)" C&%%)2
Th"# "# !he $r"(e b'#")e## ch))el ") ICICI Sec'r"!"e#& I! %**er# @") @") $r!)er#h"$ *%r e)!re$re)e'r#&
Th"# ch))el c!# # b'#")e## c!ly#!. All !he S'b7r%/er# re re-"#!ered ,"!h ICICI Sec'r"!"e# )d ble
!% !r)#c! !hr%'-h !he *'lly '!%(!ed ICICI D"rec! Pl!*%r(
SALES CHANNEL OF ICICI SECURITIES
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SALES CHANNEL
I-D#")3' S'*")/
I) I)d"& !here re 3 ICICI D"rec! Ce)!er &c'#!%(er c) ,l/ ") !% !he#e ce)!er# *%r *"))c"l
$r%d'c!# l"/e 3 ") A1c& E+'"!"e# & MF & IPO& LI & GI& HL& PL )d %!her *"))c"l $r%d'c!#. The#e
#!%re# l#% c%)d'c! $er"%d"c !r")")- #e##"%) %) c$"!l Mr/e!.
Ser4"ce# l"/e F"))c"l $l))")- "# 4"lble ") I D"rec! S!%re#& ,here c'#!%(er c) *")d %'! h"#
R"#/ Pr%*"le# )d Pl) h"# ")4e#!(e)!#.
R)'
The Te( %* 5 Ded"c!ed Rel!"%)#h"$ M)-er ") Re!"l Ch))el& 7#"clly They re
$r%(%!")- 3 ") Acc%')! )d A-e)cy Sle#. They re $r%(%!")- ll !he F"))c"l Pr%d'c!# %*
ICICI Sec'r"!"e#
E(#' T)&
E+'"!y Te( ")cl'de# ATS ;Ac!"4e Trder# Ser4"ce#< 9 EAG ;E+'"!y Ad4"#%ry Gr%'$
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S(-B"*)" C&%%)
I) ICICI Sec'r"!"e# !here re Rel!"%)#h"$ M)-er 9 5 CSE# h)dle# B Ac!"4e S'b
7r%/er# Ch))el. Th"# "# !he $r"(e ch))el ") ICICI Sec'r"!"e# I! %**er# @") @") $r!)er#h"$ *%r
e)!re$re)e'r#& !h"# ch))el c!# # b'#")e## c!ly#!.
All !he S'b7r%/er# re re-"#!ered ,"!h ICICI Sec'r"!"e# )d ble !% !r)#c! !hr%'-h !he *'lly '!%(!ed
ICICI D"rec! Pl!*%r(
RESEARCH TEAM
Th"# "# !he 4ery "($%r!)! Are %* I)4e#!(e)! 7)/")-& All !he 7'#")e## 9 Re#erch A)ly#! #"!#
") !h"# Te(& )d I) ICICI Sec'r"!"e# M%#! %* !he A)ly#! re h"red *r%( ,ell /)%,) 7'#")e##
Sch%%l. I) ICICI Sec'r"!"e#& Re#erch Te( "# d"4"ded ")!% !,% #e-(e)!# ?"0.
A5 INSTITUTIONAL RESEARCH
The I)#!"!'!"%)l re#erch !e( h# 3 )ly#!#& ,"!h c%4er-e %* 5 #!%c/#. I)d" U)l"("!ed& ) ))'l
")4e#!%r# c%)*ere)ce held ") S")-$%re )d Ne, %r/& ,"!)e##e# e8celle)! re#$%)#e# *r%( ")4e#!%r#
e4ery yer. The !e( l#% h%ld# )'(ber %* !he(e b#ed c%)*ere)ce# ") I)d" !h! dr, -%%d re#$%)#e#
*r%( !he cl"e)!ele
B5 RETAIL RESEARCH
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ICICId"rec!.c%( re#erch& 3(e(ber #!r%)- !e(& "# leder ") ")de$e)de)! e+'"!y re#erch %) %4er
c%($)"e#& #$ec"l"0")- ") lr-e& #(ll )d ("d c$ c%($)"e#. O'r re#erch !e( (/e# %4er 3
c%(
$)y 4"#"!# $er yer& (ee!")- ,"!h ()-e(e)! *r%( !he #(lle#! !% !he lr-e#! c$ c%($)"e#.
Lr-e c$ c%($)"e# $r%4"de ) %4er4"e, %* ")d'#!ry e)4"r%)(e)!#& ,h"le #(ll )d ("dc$ c%($)"e#
re ch%#e) b%!!%('$& $r%4"d")- ')"+'e $er#$ec!"4e *r%( -e)erlly ')derre#erched e)d %* !he
(r/e!. ISec *%c'# %) "de)!"*y")- c%($)"e#& ,h"ch !hey bel"e4e re l"/ely !% -e)er!e ,el!h *%r
")4e#!%r %) #'#!")ed b#"# !hr%'-h ")de$!h *')d(e)!l re#erch )d e8!e)#"4e c%($)y 4"#"!#.
Re#erch Te( %**er# Ser4"ce# l"/e De!"led C%($)y Re$%r!& P"c/ %* !he @ee/& M%del P%r!*%l"%& S!%c/
%) !he M%4e& D"ly 9 @ee/ly der"4!"4e#& I)!rdy cll#& D"ly& @ee/ly 9 M%)!hly Tech)"cl ,"!h )
"($eccble #!r"/e r!e.
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S%& S*' *+ R)/)&"3 R)*"'
OPERATIONS 8 PROCESS-
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SUB-BROKER OPERATION
R)$#/'"&'#*% P"*3)//
1. RM $$r%ch !% S'b7r%/er )d *"ll '$ !he NSE& 7SE )d ICICI Sec'r"!"e#
A$$l"c!"%) *%r(.
2. RM c%llec! *%ll%,")- *r%( S'b7r%/er l%)- ,"!h !he A$$l"c!"%).
. PAN Crd C%$y.
. Addre## Pr%%* ;P##$%r! 1 Tele$h%)e 7"ll 1 7)/ S!!e(e)!
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=. O$er!"%) E8ec'!"4e "),rd !he *"le ") IN@ARD MIS
!. O$er!"%) E8ec'!"4e chec/ !he d%c'(e)!# ,"!h !he hel$ %* le-l 9 C%($l")ce
Te( )d de$%#"! DD !% !he e#cr%, cc%')!.
>. I* !here "# )y reec!"%) he ")!"(!e "! !% !he RM# el#e he #e)d# !he *"le# !% !he
E8ch)-e *%r !he Re-"#!r!"%).
7. N%r(l TAT ! E8ch)-e "# 3 !% M%)!h#.
;. O)ce ,e rece"4ed Re-"#!r!"%) Cer!"*"c!e *r%( E8ch)-e & Le-l de$r!(e)!
/ee$ !he %r"-")l cer!"*"c!e )d #e)d $h%!% c%$y !% !he re#$ec!"4e S'b7r%/er.
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Tr)#*er ") "# $r%ce## ,here !he c'#!%(er c) br")- h"# %**l")e *%l"% !% ICICI Sec'r"!"e#.
Pr%4"ded he #h%'ld h4e ) ICICId"rec! A1C.
Cr"!er" *%r Tr)#*er I) Pr%ce##2
1. The %**l")e *%l"% #h%'ld be ") !he )(e %* #(e c'#!%(er.
2. The %**l")e *%l"% #h%'ld be ") !he #")-le h%ld")- $!!er).
. I* !he c'#!%(er h# SIP ") !he %**l")e *%l"%& "! )eed# !% be c)celled be*%re $lc")- Tr)#*er I)
Re+'e#!.
D*3()%'/ ")(#") +*" T"&%/+)" I% P"*3)//
1. Tr)#*er I) Re+'e#! Le!!er
2. N% Obec!"%) Cer!"*"c!e ;NOC<
. Sel* !!e#!ed PAN C%$"e#
=. S!!e(e)! %* h%ld")- *%r !he *%l"% !% be !r)#*erred ").
P"*3)(") '* ) +**) ') C(/'*)"
1. L%-") !% ICICId"rec! A1C )d -% !% MF P-e.
2. Cl"c/ %) P'rch#e
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. I) *r%)! %* !he AMC *%r ,h"ch ,e ,)!# !% $lce TI %rder& Cl"c/ %) !he l")/ =Tr)#*er
I)>.
=. Cl"c/ %) !he =Plce TI Order =l")/.
!. I) !he *%r( !h! %$e)#& #elec! !he %**l")e #che(e )(e )d *%l"% )'(ber )d cl"c/ %)
=S'b("!>.
>. O)ce he cl"c/ %) #'b("!& he ,"ll be -"4e) ) %$!"%) !% $r")! !h"# $$l"c!"%). The
C'#!%(er )eed# !% !/e $r")! %* !he $$l"c!"%)& S"-) "! )d #e)! "! l%)- ,"!h NOC&
S!!e(e)! %* h%ld")- *%r !he *%l"% )d PAN C%$y !% !he O$er!"%) Te( ! C%r$%r!e
O**"ce.
H* *)/ ') T"&%/+)" I% ")()/' '&) &3)
1. O)ce !he c'#!%(er $lce# Tr)#*er I) re+'e#! %)l")e& !he #!!'# %* !he %rder ,"ll be
=D%c'(e)!# A,"!ed> ") TI 7%%/ !"ll !he c'#!%(er #e)d# !he d%c'(e)!# !% '#.
2. O) rece"$! %* !he d%c'(e)!# *%r Tr)#*er ")& !hey re *"r#! 4er"*"ed ") cc%rd)ce ,"!h !he
b#"c re+'"re(e)!# %* !he re#$ec!"4e A##e! M)-e(e)! C%($)y ;AMC
=. O) c%)*"r(!"%) *r%( !he AMC 1 Re-"#!rr& !he )'(ber %* ')"!# !r)#*erred ") "# '$d!ed
%) !he #"!e )d !he #!!'# %* !he %rder !he) bec%(e# =E8ec'!ed>. The c'#!%(er c) !he)
4"e, !he ')"!# %)l")e ") h"# ')"! h%ld")-#.
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!. The TAT *%r !he Tr)#*er I) $r%ce## "# 5 ,%r/")- dy# *r%( !he d!e %* rece"$! %*
d%c'(e)!# ! ICICI Sec'r"!"e#.
TRANSFER OUT
Tr)#*er %'! "# $r%ced're %* ch)-e ") br%/er c%de ,here ) ICICId"rec! c'#!%(er ,)! # !%
e"!her d"rec!ly del ,"!h AMC.
Cr"!er" *%r Tr)#*er O'! Pr%ce##2
1. The c'#!%(er c)’! !r)#*er !he ')"! h%ld")- ") %")! )(e # %)ly #")-le h%lder "# ll%,ed
") ICICId"rec!
2. The c'#!%(er #h%'ld c)cel !he %)-%")- SIP be*%re he $lce# !r)#*er %'! re+'e#! *%r
!he#e *%l"%#.
D*3()%'/ ")(#") +*" T"&%/+)" I% P"*3)//
1. Tr)#*er O'! A$$l"c!"%) *%r(.
2. Sel* !!e#!ed PAN C%$y.
P"*3)(") '* ) +**) ') C(/'*)"
1. C'#!%(er )eed# !% #e)d !he b%4e (e)!"%)ed d%c'(e)!# !% !he %$# ! c%r$%r!e %**"ce.
H* *)/ ') T"&%/+)" I% ")()/' '&) &3)
56 | I n v e s t m e n t B a n k i n g i n I n d i a
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1. O) rece"$! %* !he Tr)#*er O'! re+'e#! le!!er *r%( !he c'#!%(er& ,e #hll 4er"*y !he
c'#!%(er de!"l#& ddre##& !he b)/ ()d!e de!"l# )d !he #"-)!'re ,"!h !h! ")
!he rec%rd# %* ICICI Sec'r"!"e#.
2. ICICI Sec'r"!"e# ,"ll !he) "##'e ) NOC& d'ly #"-)ed by !he A'!h%r"0ed #"-)!%ry.
. The C'#!%(er’# re+'e#! le!!er& l%)- ,"!h !he NOC )d PAN c%$y "# !he) #e)! !%
!he re#$ec!"4e AMC 1 Re-"#!rr *%r *'r!her $r%ce##")-.
=. O)ce !r)#*er %'! "# d%)e& !he ')"!# h%ld")- %* !he c'#!%(er ,"ll bec%(e )"l& )d
!he de!"l# %* !he !r)#*er %'! ,"ll be re*lec!ed ") c'#!%(er# %rder b%%/.
!. The TAT *%r !he Tr)#*er %'! $r%ce## "# 5 ,%r/")- dy#.
INTERNAL TRANSFER FROM ONE MATCH AC TO ANOTHER
I)!er)l !r)#*er "# $r%ce## ,here c'#!%(er c) !r)#*er ('!'l *')d ')"! h%ld")-# *r%( %)e
M!ch A1c !% )%!her& $r%4"ded b%!h !he M!ch Acc%')! re ") !he #(e )(e& "! e)#'re !h! !he
c'#!%(er cl%#e# %)e %* !he cc%')!# *!er !he !r)#*er "# d%)e bec'#e # $er SE7I -'"del")e#&
c'#!%(er c) )%! (")!") (%re !h) %)e !rd")- 1c ,"!h br%/er.
D*3()%'/ ")(#") +*" I%')"%& T"&%/+)" P"*3)//
1. I)!er)l Tr)#*er A$$l"c!"%) *%r Re#"de)! 9 NRI C'#!%(er
2. PAN C%$y
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H* 3&% ') 3(/'*)" '"&%/+)" #/ (%#'/ +"* *%) AC '* &%*')"
1. C'#!%(er )eed# !% #'b("! #$ec"*"c *%r(!#
2. C'#!%(er )eed# !% $lce !r)#*er ") %rder# *%r ll !he #che(e# ") !he #%'rce (!ch 1c
!he#e %rder# h4e !% be $lced ") !he !r-e! (!ch 1c.
. C'#!%(er# #h%'ld c)cel )y %)-%")- SIP ") !he #%'rce ICICId"rec! A1C be*%re -"4")-
)y ")!er)l !r)#*er re+'e#!. I) c#e ) ")!er)l !r)#*er re+'e#! "# -"4e) ,"!h %)-%")-
SIP’# ") !he #%'rce M!ch A1C& !he #(e ,"ll be c)celled. The c'#!%(er (y ") *'!'re
#!r! )e, SIP ") !he Tr-e! ICICI d"rec! A1c.
T) *+ I%')"%& T"&%/+)"
=. O)e re#"de)! (!ch 1c !% )%!her re#"de)! (!ch 1c.
!. NRI ICICId"rec! 1c !% re#"de)! ICICId"rec! 1c.
>. Re#"de)! ICICId"rec! 1c !% NRI ICICId"rec! 1c.
BROKERAGE PATTERN IN ICICI SECURITIES
T9PE AMOUNT
7'#")e## Pr!)er Re*errlC%(("##"%)
R#. Per Ne, 7P Ac+'"#"!"%)
T" C*#//#*%
ICICI Sec'r"!"e# J %) T%!l C%(("##"%)
7'#")e## Pr!)er 3J %) T%!l C%(("##"%)
C%(("##"%) %) E+'"!y ;C#h< .5J %) T%!l E+'"!y ;C#h< T'r)%4er
C%(("##"%) %) E+'"!y ;I)!r dy< .3J %) T%!l I)!r Dy ;Mr-")<
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T'r)%4er
C%(("##"%) %) Der"4!"4e# .3J %) T%!l Der"4!"4e T'r)%4er ;F9O<
M'!'l F')d# A4- .3 P"# ;D"**er Sche(e !% Sche(e<
IPO De$e)d '$%) I##'er C%($)y
OPERATIONAL CONTROL TEAM
I! "# ")!er)l c%)!r%l #y#!e( ") ICICI Sec'r"!"e#& The"r M") K%b "# !% chec/ !he O$er!"%)l
Ac!"4"!"e# )d e)#'re ,he!her !he ,%r/ "# -e!!")- d%)e # $er !he TAT -"4e). I* !here "# )y
de4"!"%) ") @%r/& !hey e#cl!e !he "##'e !% O$er!"%)l C%)!r%l Te(. The) OCT ")4e#!"-!e
!he (!!er )d *")d %'! !he re#%) *%r !he de4"!"%)#. I! "# Te( %* e8celle)! Pr%*e##"%)l#. They
#cree) !he %$er!"%)l Ac!"4"!"e#. O$er!"%) C%)!r%l rele#e# *%ll%,")- MIS %) M%)!hly b#"#
cr%## !he ch))el.
A")& O/)"@&'#*%/ R)&"/P"*3)//
O%)"
R)+(% *+ /)3("#' )*/#' '*
') /(-"*)"/
c#e# %b#er4ed.Te( !% $r%4"de !here#%)# *%r dely %*re*')d )d !r-e! d!e *%rre*')d")- !he #(e.
A)"l De#le;Re*er A))e8're *%r !he l"#! %* #'b br%/er# #!!'# ,h"ch re cl%#ed *%r (%re!h) (%)!h# )d #ec'r"!y de$%#"!# d'e !% be re*')ded<
P") ")$#/'"&'#*% 4S(
"*)" A3(#/#'#*% S'&'(/5
P"#*" '* A" 0
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to DBC - 1.5< Sh"*!")- %* cc%')! S'bbr%/er !% #'b br%/er .
< Cre!"%) %* dd"!"%)l )%de "d .
< ? S! rel!ed re*')d )%! rece"4ed .
A3'#@) /( "*)" #3 &")
%*' ")$#/')")
T%!l $e)d")- c#e# BTe( !% $r%4"de re#%)#*%r c#e# $e)d")- ,"!h%$er!"%)#.
A)"l De#le 1S(rdee$S%%d
O$er!"%)#
Sle#
E8ch)-e
NSE (%)"'&#%$ +*"
&#'#*%& 3&(/)/ (%)" /(
"*)" &$")))%'.
T%!l c#e# 3Te( !% $r%4"de !he!r-e! d!e *%r re#%l4")-!he#e $e)d")- c#e#.
M)% :br
Pe)d")- ,"!h #le#
A('*"#) )"/*% +*" FNO
&3'#@) /( "*)"T%!l $e)d")- c#e#
Te( !% $r%4"de !he!r-e! d!e *%r re#%l4")-!he#e $e)d")- c#e#.
M)% :br
BCSM 3*#&%' %*) 7CSM )%) c%($l")! )%de 5Te( !% '$d!e !he #!!'#%) !%!l 7CSM )%de "d.
Ar4")d G%-"
S( "*)"/ '* ) 3*/) F*"
F9 200;-0<
Pe)d")- ,"!h #le#2
S(rdee$S%%d. NSE 3
7SE 3
SEBI +))/ )' '* )
")3*@)")
c#e# %b#er4ed. Te( !% '$d!e %) de!"l#%* rec%4ery ;"* )y
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I! "# Te( %* A)ly#! & They re '#")- A)ly!"cl T%%l# l"/e SAS )d -e)er!e 4r"%'#
!y$e# %* A)ly!"cl Re$%r!# )d #'b("! "! !% !he Pr%d'c! )d Sle# Te( !% !/e dec"#"%) %)
Pr%d'c! E8$)#"%) )d d"4er#"*"c!"%).
MARKETING 8 ALLIANCES
The (") re#$%)#"b"l"!y %* M9A !e( "# !% %r-)"#e $r%(%!"%)l Ac!"4"!"e# l"/e R%d
Pr%(%!"%)& E4e)!# e!c ") %rder !% -e)er!e led )d !h%#e led# !hey *%r,rd "! !% c%)cer)
Sle# Ch))el#. Al#% !"e '$ ,"!h !he 4e)d%r# )d A-e)c"e# *%r Mr/e!")- c%ll!rl#. 7#"clly
!hey re !he #'$$%r! !% !he Sle# ch))el.
HUMAN RESOURCE
HR C%)d'c!# I)!er4"e, )d h"re# !le)!# *r%( I)!er)l 9 E8!er)l S%'rce& Al#% $r%4"de#
Tr")")- !% !he Ne,ly h"red #!**& E($l%yee Or"e)!!"%)& H"r")- Pr%ce##& Per*%r()ce
A$$r"#l& Tr")")- )d de4el%$(e)!& C%)d'c! G(e# ! C%r$%r!e O**"ce.
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CONCLUSION
Fr%( !he b%4e #!'dy "! h# bee) c%)cl'ded !h! I) I)d" I)4e#!(e)! 7)/# re ')der re-'l!"%)
%* SE7I& A# $er SE7I G'"del")e# %) Merch)! 7)/")- & @he)e4er )y c%r$%r!e -% *%r IPO %r
M9 A They h4e !% $$%")! Merch)! 7)/er *%r M)-")- !he **"r#
The *'!'re %* Merch)! 7)/ ") I)d" "# 4ery 7r"-h! & "* y%' c%)#"der $re#e)! Mr/e! S"!'!"%)
,here Se)#e8 9 N"*!y I)de8 "# 9 5 Re#$ec!"4ely. S% ()y c%r$%r!e h4e declred
)d *"led IPO 9 M9A @"!h SE7I. Merch)! 7)/er# c! # Led M)-er )d # led
()-er !hey ')der,r"!e !he I##'e.
The (%r re4e)'e *%r (erch)! b)/# "# rece"4ed *r%( !he IPO& M9A& Ad4"#%ry Ser4"ce# "! "#
$'rely *ee b#ed b'#")e##. A# ,e /)%, ") US L#! yer b"- ")4e#!(e)! b)/er# c%ll$#ed& !he
re#%) be")- S'b Pr"(e Cr"#"#. I) US ")4e#!(e)! b)/# le)d (%)ey %) (%r!--e #% #'dde)
ec%)%("cl ch)-e red'ced !he de()d *%r Rel E#!!e )d !he $r"ce# %* !he $r%$er!y *lle)
d%,). S% 'l!"(!ely !he *')d ,h"ch ,# *"))ced *%r H%'#")- h# l#% bee) #hr")/")-.
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BIBILIOGRAPHY
1. M)ch"r'& H.R.& Merch)! b)/")- Pr")c"$le# )d Prc!"ce& Ne, A-e
I)!er)!"%)l ;$< L"("!ed P'bl"#her#& Ne, Delh".
2. SE7I2 Merch)! 7)/")- Re-'l!"%)#& BB.
. ,,,.")4e#!%$ed".c%(
=. ,,,.,"/"$ed".c%(
!. ,,,."c"c"#ec'r"!"e#.c%(
>. ,,,.(%)eyc%)!r%l.c%(
7. ,,,.-%%-le.c%(
63 | I n v e s t m e n t B a n k i n g i n I n d i a
http://www.investopedia.com/http://www.wikipedia.com/http://www.icicisecurities.com/http://www.moneycontrol.com/http://www.google.com/http://www.investopedia.com/http://www.wikipedia.com/http://www.icicisecurities.com/http://www.moneycontrol.com/http://www.google.com/
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;. ,,,.#eb".%r-
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Pre*ere)ce#. O'! O* The @el!er O* D"**er")- S!'d"e#& A Fe, Me!h%d# O* A#cer!")")-
Pre*ere)ce# Are C%(")- I)!% Ge)erl U#e. H%,e4er& There I# S!"ll A Lc/ O* U)der#!)d")- O*
The Rel!"4e Mer"!# O* The ?r"%'# Me!h%d# I) A!!")")- ?r"%'# Obec!"4e#& A)d There I#
D"#-ree(e)! A# T% @h! I# Me)! 7y Pre*ere)ce# I?. Re#erch T%%l#2 Perce)!-e A)ly#"#&
Ch"S+'re Te#!# 7r D"-r( A)d P"e Chr!# Are U#ed I) The A)ly#"# Pr!. S!"#*c!"%) Le4el
Pr!"c'lr H"-hly D"# S!"#*"ed D"# S!"#*"ed Ne'!rl S!"#*"ed H"-hly S!"#*"ed Pr"ce B 3
Q'l"!y 3 A*!er Sle# Ser4"ce B A S!'dy %) C'#!%(er S!"#*c!"%)
!%,rd# S(#')- M%b"le Ph%)e ") Er%de C"!y N!"%)l C%)*ere)ce %) =I))%4!"4e 7'#")e##
Prc!"ce# ") Tech)%l%-"cl Er> P-e Er%de Se)-')!hr E)-")eer")- C%lle-e& Th'd'$!h"&
Er%de A-e O* Re#$%)de)!# R!e %'r Le4el O* S!"#*c!"%) Cr%## Tb'l!"%)
R!ey%'rle4el%*#!"#*c!"%) T%!l H"-hlyd"##!" #*"ed D"##!"#*"ed Ne'!rl S!"#*"ed H"-hly#!"#*"
ed A-e O* Re#$%)de)!# 7el%, 5 3 3 5 5 3 B 3 5
5 Ab%4e 5 T%!l B ?. Hy$%!he#"#2 H%V There I# N%
Rel!"%)#h"$ 7e!,ee) A-e A)d S!"#*c!"%) Le4el HVThere I# Rel!"%)#h"$ 7e!,ee) A-e A)d
S!"#*c!"%) Le4el ?I
D)')"#%&'#*% *+ E3&%$) R&')/
.
Three #$ec!# %* e8ch)-e r!e de!er(")!"%) re d"#c'##ed bel%,. F"r#!& !here "# br"e*
de#cr"$!"%) %* #%(e %* !he br%d $$r%che# !% e8ch)-e r!e de!er(")!"%). Sec%)d& !here re
#%(e c%((e)!# %) !he $r%ble(# %* e8ch)-e r!e *%rec#!")- ") $rc!"ce. Th"rd& ce)!rl b)/
")!er4e)!"%) )d "!# e**ec!# %) e8ch)-e r!e# re d"#c'##ed.
S%(e $$r%che# !% e8ch)-e r!e de!er(")!"%)2
• The Purh!"#$% P'er P!r#() A**r!h
P'rch#")- P%,er Pr"!y ;PPP< !he%ry h%ld# !h! ") !he l%)- r')& e8ch)-e r!e# ,"ll d'#! !%
e+'l"0e !he rel!"4e $'rch#")- $%,er %* c'rre)c"e#. Th"# c%)ce$! *%ll%,# *r%( !he l, %* %)e
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$r"ce& ,h"ch h%ld# !h! ") c%($e!"!"4e (r/e!#& "de)!"cl -%%d# ,"ll #ell *%r "de)!"cl $r"ce# ,he)
4l'ed ") !he #(e c'rre)cy.
The l, %* %)e $r"ce rel!e# !% ) ")d"4"d'l $r%d'c!. A -e)erl"0!"%) %* !h! l, "# !he b#%l'!e
4er#"%) %* PPP& !he $r%$%#"!"%) !h! e8ch)-e r!e# ,"ll e+'!e )!"%)#’ %4erll $r"ce le4el#. M%re
c%((%)ly '#ed !h) b#%l'!e PPP "# !he c%)ce$! %* rel!"4e PPP& ,h"ch *%c'#e# %) ch)-e# ")
$r"ce# )d e8ch)-e r!e#& r!her !h) %) b#%l'!e $r"ce le4el#. Rel!"4e PPP h%ld# !h! !here ,"ll
be ch)-e ") e8ch)-e r!e# $r%$%r!"%)l !% !he ch)-e ") !he r!"% %* !he !,% )!"%)#’ $r"ce
le4el#& ##'(")- )% ch)-e# ") #!r'c!'rl rel!"%)#h"$#. Th'#& "* !he U.S. $r"ce le4el r%#e
$erce)! )d !he K$)e#e $r"ce le4el r%#e 5 $erce)!& !he U.S. d%llr ,%'ld de$rec"!e 5 $erce)!&
%**#e!!")- !he h"-her U.S. ")*l!"%) )d le4")- !he rel!"4e $'rch#")- $%,er %* !he !,%
c'rre)c"e# ')ch)-ed.
PPP "# b#ed ") $r! %) #%(e ')rel"#!"c ##'($!"%)#2 !h! -%%d# re "de)!"cl !h! ll -%%d# re
!rdble !h! !here re )% !r)#$%r!!"%) c%#!#& ")*%r(!"%) -$#& !8e#& !r"**#& %r re#!r"c!"%)# %*
!rde )d W"($l"c"!ly )d "($%r!)!lyW!h! e8ch)-e r!e# re ")*l'e)ced %)ly by rel!"4e
")*l!"%) r!e#.
7'! c%)!rry !% !he "($l"c"! PPP ##'($!"%)& e8ch)-e r!e# l#% c) ch)-e *%r re#%)# %!her
!h) d"**ere)ce# ") ")*l!"%) r!e#. Rel e8ch)-e r!e# c) )d d% ch)-e #"-)"*"c)!ly %4er !"(e& bec'#e %* #'ch !h")-# # (%r #h"*!# ") $r%d'c!"4"!y -r%,!h& d4)ce# ") !ech)%l%-y& #h"*!# ")
*c!%r #'$$l"e#& ch)-e# ") (r/e! #!r'c!'re& c%((%d"!y #h%c/#& #h%r!-e#& )d b%%(#.
I) dd"!"%)& !he rel!"4e 4er#"%) %* PPP #'**er# *r%( (e#'re(e)! $r%ble(#2@h! "# -%%d
#!r!")- $%")!& %r b#e $er"%d @h"ch "# !he $$r%$r"!e $r"ce ")de8 H%, #h%'ld ,e cc%')! *%r
)e, $r%d'c!#& %r ch)-e# ") !#!e# )d !ech)%l%-y
PPP "# ")!'"!"4ely $l'#"ble )d (!!er %* c%((%) #e)#e& )d "! ')d%'b!edly h# #%(e 4l"d"!y
W#"-)"*"c)!ly d"**ere)! r!e# %* ")*l!"%) #h%'ld cer!")ly **ec! e8ch)-e r!e#. PPP "# '#e*'l ")
##e##")- l%)-!er( e8ch)-e r!e !re)d# )d c) $r%4"de 4l'ble ")*%r(!"%) b%'! l%)-r')
e+'"l"br"'(. 7'! "! h# )%! (e! ,"!h ('ch #'cce## ") $red"c!")- e8ch)-e r!e (%4e(e)!# %4er
#h%r! )d (ed"'(!er( h%r"0%)# *%r ,"dely !rded c'rre)c"e#. I) !he #h%r! !er(& PPP #ee(# !%
$$ly be#! !% #"!'!"%)# ,here c%')!ry "# e8$er"e)c")- 4ery h"-h& %r e4e) hy$er")*l!"%)& ")
,h"ch lr-e )d c%)!")'%'# $r"ce r"#e# %4er,hel( %!her *c!%r#.
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• The B!+!$e , P!)-e$(" !$. (he I$(er$!+/ E0(er$!+ B!+!$e A**r!h
PPP c%)ce)!r!e# %) %)e $r! %* !he bl)ce %* $y(e)!#W!rdble -%%d# )d #er4"ce#W )d
$%#!'l!e# !h! e8ch)-e r!e ch)-e# re de!er(")ed by ")!er)!"%)l d"**ere)ce# ") $r"ce#& %r
ch)-e# ") $r"ce#& %* !rdble "!e(#.
O!her $$r%che# h4e *%c'#ed %) !he bl)ce %* $y(e)!# %) c'rre)! cc%')!& %r %) !he bl)ce
%* $y(e)!# %) c'rre)! cc%')! $l'# l%)-!er( c$"!l& # -'"de ") !he de!er(")!"%) %* !he
$$r%$r"!e e8ch)-e r!e.
7'! ") !%dy’# ,%rld& "! "# -e)erlly -reed !h! "! "# e##e)!"l !% l%%/ ! !he e)!"re bl)ce %*
$y(e)!#Wb%!h c'rre)! )d c$"!l cc%')! !r)#c!"%)#W") ##e##")- *%re"-) e8ch)-e *l%,#
)d !he"r r%le ") !he de!er(")!"%) %* e8ch)-e r!e#.
K%h) @"ll"(#%) )d %!her# h4e de4el%$ed !he c%)ce$! %* !he =*')d(e)!l e+'"l"br"'(
e8ch)-e r!e&> %r FEER& e)4"#-ed # !he e+'"l"br"'( e8ch)-e r!e !h! ,%'ld rec%)c"le
)!"%)’# ")!er)l )d e8!er)l bl)ce. I) !h! #y#!e(& ech c%')!ry ,%'ld c%(("! "!#el* !%
(cr%ec%)%("c #!r!e-y de#"-)ed !% led& ") !he (ed"'( !er(& !% =")!er)l bl)ce>Wde*")ed #
')e($l%y(e)! ! !he )!'rl r!e )d (")"(l ")*l!"%)W)d !% =e8!er)l bl)ce>Wde*")ed #
ch"e4")- !he !r-e!ed c'rre)! cc%')! bl)ce. Ech c%')!ry ,%'ld be c%(("!!ed !% h%ld")- "!#
e8ch)-e r!e ,"!h") b)d %r !r-e! 0%)e r%')d !he FEER& %r !he le4el )eeded !% rec%)c"le
")!er)l )d e8!er)l bl)ce d'r")- !he ")!er4e)")- d'#!(e)! $er"%d.
The c%)ce$! %* FEER& # ) e+'"l"br"'( e8ch)-e r!e !% rec%)c"le ")!er)l )d e8!er)l bl)ce&
"# '#e*'l %)e. 7'! !here re $rc!"cl $r%ble(# ") clc'l!")- FEER#.There "# )% ')"+'e )#,er
!% ,h! c%)#!"!'!e# !he FEER de$e)d")- %) !he $r!"c'lr ##'($!"%)#& (%del#& )d ec%)%(e!r"c
(e!h%d# '#ed& d"**ere)! )ly#!# c%'ld c%(e !% +'"!e d"**ere)! re#'l!#. The '!h%r# rec%-)"0e !h"#
d"**"c'l!y& )d c/)%,led-e !h! #%(e ll%,)ce #h%'ld be (de by ,y %* !r-e! b)d r%')d!he FEER.@"ll"(#%) h# #'--e#!ed !h! FEER clc'l!"%)# c%'ld )%! rel"#!"clly '#!"*y
e8ch)-e r!e b)d# )rr%,er !h) $l'# %r (")'# $erce)!.
• The M$e(!r) A**r!h
The (%)e!ry $$r%ch !% e8ch)-e r!e de!er(")!"%) "# b#ed %) !he $r%$%#"!"%) !h! e8ch)-e
r!e# re e#!bl"#hed !hr%'-h !he $r%ce## %* bl)c")- !he !%!l #'$$ly %*& )d !he !%!l de()d
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*%r& !he )!"%)l (%)ey ") ech )!"%). The $re("#e "# !h! !he #'$$ly %* (%)ey c) be c%)!r%lled
by !he )!"%)’# (%)e!ry '!h%r"!"e#& )d !h! !he de()d *%r (%)ey h# #!ble )d $red"c!ble
l")/-e !% *e, /ey 4r"ble#& ")cl'd")- ) ")4er#e rel!"%)#h"$ !% !he ")!ere#! r!eW!h! "#& !he
h"-her !he ")!ere#! r!e& !he #(ller !he de()d *%r (%)ey. I) "!# #"($le#! *%r(& !he (%)e!ry
$$r%ch ##'(e# !h!2 $r"ce# )d ,-e# re c%($le!ely *le8"ble ") b%!h !he #h%r! )d l%)- r')&
#% !h! PPP h%ld# c%)!")'%'#ly& !h! c$"!l "# *'lly (%b"le cr%## )!"%)l b%rder#& )d !h!
d%(e#!"c )d *%re"-) ##e!# re $er*ec! #'b#!"!'!e#. S!r!")- *r%( e+'"l"br"'( ") !he (%)ey )d
*%re"-) e8ch)-e (r/e!#& "* !he U.S. (%)ey #'$$ly ")cre#ed& #y& $erce)!& ,h"le !he
K$)e#e (%)ey #'$$ly re(")ed #!ble& !he U.S. $r"ce le4el& ") !"(e& ,%'ld r"#e $erce)! )d
!he d%llr ,%'ld de$rec"!e $erce)! ") !er(# %* !he ye).
I) !h"# #"($l"*"ed 4er#"%)& !he (%)e!ry $$r%ch c%(b")e# !he PPP !he%ry ,"!h !he +')!"!y!he%ry %* (%)eyW")cre#e# %r decre#e# ") !he (%)ey #'$$ly led !% $r%$%r!"%)!e ")cre#e# %r
decre#e# ") !he $r"ce le4el %4er !"(e& ,"!h%'! )y $er()e)! e**ec!# %) %'!$'! %r ")!ere#! r!e#.
M%re #%$h"#!"c!ed 4er#"%)# rel8 #%(e %* !he re#!r"c!"4e ##'($!"%)#W*%r e8($le& $r"ce
*le8"b"l"!y )d PPP (y be ##'(ed )%! !% h%ld ") !he #h%r! r')Wb'! (")!") !he *%c'# %) !he
r%le %* )!"%)l (%)e!ry $%l"c"e#.
E($"r"cl !e#!# %* !he (%)e!ry $$r%chW #"($le %r #%$h"#!"c!edWh4e *"led !% $r%4"de )
de+'!e e8$l)!"%) %* e8ch)-e r!e (%4e(e)!# d'r")- !he *l%!")- r!e $er"%d. The $$r%ch
%**er# %)ly $r!"l 4"e, %* !he *%rce# ")*l'e)c")- e8ch)-e r!e#W"! ##'(e# ,y !he r%le %*
)%)(%)e!ry ##e!# #'ch # b%)d#& )d "! !/e# )% e8$l"c"! cc%')! %* #'$$ly )d de()d
c%)d"!"%)# ") -%%d# )d #er4"ce# (r/e!#. De#$"!e "!# l"("!!"%)#& !he (%)e!ry $$r%ch %**er#
4ery '#e*'l ")#"-h!#. I! h"-hl"-h!# !he "($%r!)ce %* (%)e!ry $%l"cy ") ")*l'e)c")- e8ch)-e
r!e#& )d c%rrec!ly ,r)# !h! e8ce##"4e (%)e!ry e8$)#"%) led# !% c'rre)cy de$rec"!"%).
The (%)e!ry $$r%ch l#% $r%4"de# b#"# *%r e8$l")")- e8ch)-e r!e %4er#h%%!")-W
#"!'!"%) %*!e) %b#er4ed ") e8ch)-e (r/e!# ") ,h"ch $%l"cy (%4e c) led !% ) ")"!"l
e8ch)-e r!e (%4e !h! e8ceed# !he e4e)!'l ch)-e "($l"ed by !he )e, l%)-!er( #"!'!"%). I)
!he c%)!e8! %* (%)e!ry $$r%ch (%del# !h! ")c%r$%r!e #h%r!!er( #!"c/")e## ") $r"ce#&
e8ch)-e r!e %4er#h%%!")- c) %cc'r bec'#e $r"ce# %* *"))c"l ##e!#W")!ere#! )d e8ch)-e
r!e#Wre#$%)d (%re +'"c/ly !% $%l"cy (%4e# !h) d%e# !he $r"ce le4el %* -%%d# )d #er4"ce#.
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Th'#& *%r e8($le& (%)ey #'$$ly ")cre#e ;%r decre#e< ") !he U)"!ed S!!e# c) led !%
-re!er !e($%rry d%llr de$rec"!"%) ;$$rec"!"%)< # d%(e#!"c ")!ere#! r!e# decl")e ;r"#e<
!e($%rr"ly be*%re !he d'#!(e)! %* !he $r"ce le4el !% !he )e, l%)-r') e+'"l"br"'( "# c%($le!ed
)d ")!ere#! r!e# re!'r) !% !he"r %r"-")l le4el#.
• The Pr(,+# B!+!$e A**r!h
The $%r!*%l"% bl)ce $$r%ch !/e# #h%r!er!er( 4"e, %* e8ch)-e r!e# )d br%de)# !he
*%c'# *r%( !he de()d )d #'$$ly c%)d"!"%)# *%r (%)ey !% !/e cc%')! %* !he de()d )d
#'$$ly c%)d"!"%)# *%r %!her *"))c"l ##e!# # ,ell. U)l"/e !he (%)e!ry $$r%ch& !he $%r!*%l"%
bl)ce $$r%ch ##'(e# !h! d%(e#!"c )d *%re"-) b%)d# re )%! $er*ec! #'b#!"!'!e#. Acc%rd")-
!% !he $%r!*%l"% bl)ce !he%ry ") "!# #"($le#! *%r(& *"r(# )d ")d"4"d'l# bl)ce !he"r $%r!*%l"%#
(%)- d%(e#!"c (%)ey& d%(e#!"c b%)d#& )d *%re"-) c'rre)cy b%)d#& )d !hey (%d"*y !he"r
$%r!*%l"%# # c%)d"!"%)# ch)-e. I! "# !he $r%ce## %* e+'"l"br!")- !he !%!l de()d *%r& )d #'$$ly
%*& *"))c"l ##e!# ") ech c%')!ry !h! de!er(")e# !he e8ch)-e r!e.
Ech ")d"4"d'l )d *"r( ch%%#e# $%r!*%l"% !% #'"! "!# )eed#& b#ed %) 4r"e!y %*
c%)#"der!"%)#W!he h%lder’# ,el!h )d !#!e#& !he le4el %* d%(e#!"c )d *%re"-) ")!ere#! r!e#&
e8$ec!!"%)# %* *'!'re ")*l!"%)& ")!ere#! r!e#& )d #% %). A)y #"-)"*"c)! ch)-e ") !he
')derly")- *c!%r# ,"ll c'#e !he h%lder !% d'#! h"# $%r!*%l"% )d #ee/ )e, e+'"l"br"'(.
The#e c!"%)# !% bl)ce $%r!*%l"%# ,"ll ")*l'e)ce e8ch)-e r!e#. Acc%rd")-ly& )!"%) ,"!h
#'dde) ")cre#e ") (%)ey #'$$ly ,%'ld "((ed"!ely $'rch#e b%!h d%(e#!"c )d *%re"-) b%)d#&
re#'l!")- ") decl")e ") b%!h c%')!r"e#’ ")!ere#! r!e#& )d& !% !he e8!e)! %* !he #h"*! !% *%re"-)
b%)d#& de$rec"!"%) ") !he )!"%)’# h%(e c'rre)cy. O4er !"(e& !he de$rec"!"%) ") !he h%(e
c'rre)cy ,%'ld led !% -r%,!h ") !he )!"%)’# e8$%r!# )d decl")e ") "!# "($%r!#& )d !h'#& !% )"($r%4ed !rde bl)ce )d re4er#l %* $r! %* !he %r"-")l de$rec"!"%).
A# ye!& !here "# )% ')"*"ed !he%ry %* e8ch)-e r!e de!er(")!"%) b#ed %) !he $%r!*%l"% bl)ce
$$r%ch !h! h# $r%4ed rel"ble ") *%rec#!")-. I) *c!& re#'l!# %* e($"r"cl !e#!# %* !he $%r!*%l"%
bl)ce $$r%ch d% )%! c%($re *4%rbly ,"!h !h%#e *r%( #"($ler (%del#. The#e re#'l!#
re*lec! b%!h c%)ce$!'l $r%ble(# )d !he lc/ %* de+'!e d! %) !he #"0e )d c'rre)cy
c%($%#"!"%) %* $r"4!e #ec!%r $%r!*%l"%#. .
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Ne4er!hele##& !he $%r!*%l"% bl)ce $$r%ch %**er# '#e*'l *r(e,%r/ *%r #!'dy")- e8ch)-e
r!e de!er(")!"%). @"!h "!# *%c'# %) br%d (e)' %* ##e!#& !h"# $$r%ch $r%4"de# r"cher
")#"-h!# !h) !he (%)e!ry $$r%ch ")!% !he *%rce# ")*l'e)c")- e8ch)-e r!e#. I! l#% e)ble#
*%re"-) e8ch)-e r!e# !% be #ee) l"/e ##e! $r"ce# ") %!her (r/e!#& #'ch # !he #!%c/ (r/e! %r
b%)d (r/e!& ,here r!e# re ")*l'e)ced& )%! %)ly by c'rre)! c%)d"!"%)#& b'! !% -re! e8!e)! by
(r/e! e8$ec!!"%)# %* *'!'re e4e)!#. A# ,"!h %!her *"))c"l ##e!#& e8ch)-e r!e# ch)-e
c%)!")'%'#ly # !he (r/e! rece"4e# )e, ")*%r(!"%) b%'! c'rre)! c%)d"!"%)# )d ")*%r(!"%)
!h! **ec!# e8$ec!!"%)# %* !he *'!'re. The r)d%( chrc!er %* !he#e ##e! $r"ce (%4e(e)!#
d%e# )%! r'le %'! r!"%)l $r"c")-. I)deed& "! "# $er#'#"4ely r-'ed !h! !h"# "# !he re#'l! !% be
e8$ec!ed ") ,ell *')c!"%)")- *"))c"l (r/e!. 7'! ") #'ch ) e)4"r%)(e)!& e8ch)-e r!e
ch)-e# c) be lr-e )d 4ery d"**"c'l! !% $red"c!& # (r/e! $r!"c"$)!# !ry !% 'd-e !he e8$ec!ed
rel r!e# %* re!'r) %) !he"r d%(e#!"c ##e!# ") c%($r"#%) ,"!h l!er)!"4e# ") %!her c'rre)c"e#.
The $%r!*%l"% bl)ce ch))el $%#!'l!e# !h! !he e8ch)-e r!e "# de!er(")ed by !he bl)ce %*
#'$$ly )d de()d *%r 4"lble #!%c/# %* *"))c"l ##e!# held by !he $r"4!e #ec!%r. I! h%ld# !h!
#!er"l"0ed ")!er4e)!"%) ,"ll l!er !he c'rre)cy c%($%#"!"%) %* ##e!# 4"lble !% !he -l%bl $r"4!e
#ec!%r& )d !h! "* d%llr )d *%re"-) c'rre)cyde)%(")!ed ##e!# re 4"e,ed by ")4e#!%r# #
"($er*ec! #'b#!"!'!e#& #!er"l"0ed ")!er4e)!"%) ,"ll c'#e (%4e(e)!# ") !he e8ch)-e r!e !%
ree+'"l"br!e #'$$ly )d de()d *%r d%llr ##e!#. The #"0e %* !h"# $%r!*%l"% bl)ce e**ec! ,%'ld
de$e)d %) !he de-ree %* #'b#!"!'!b"l"!y be!,ee) ##e!# de)%(")!ed ") d"**ere)! c'rre)c"e# )d
%) !he #"0e %* !he ")!er4e)!"%) %$er!"%).
The e8$ec!!"%)#& %r #"-)l")-& ch))el h%ld# !h! #!er"l"0ed ")!er4e)!"%) (y c'#e $r"4!e
-e)!# !% ch)-e !he"r e8$ec!!"%)# %* !he *'!'re $!h %* !he e8ch)-e r!e. Th'#& ")!er4e)!"%)
c%'ld #"-)l ")*%r(!"%) b%'! !he *'!'re c%'r#e %* (%)e!ry %r %!her ec%)%("c $%l"c"e#& #"-)l
")*%r(!"%) b%'!& %r )ly#"# %*& ec%)%("c *')d(e)!l# %r (r/e! !re)d#& %r ")*l'e)ce
e8$ec!!"%)# by **ec!")- !ech)"cl c%)d"!"%)# #'ch # b'bble# )d b)d,-%)#.
A c%)#"derble )'(ber %* #!'d"e# h4e *%')d )% +')!"!!"4ely "($%r!)! e**ec!# %* #!er"l"0ed
")!er4e)!"%) !hr%'-h !he $%r!*%l"% bl)ce ch))el. S%(e #!'d"e# h4e *%')d e8$ec!!"%)# %r
#"-)l")- e**ec!# %* 4ry")- de-ree# %* #"-)"*"c)ce. O!her# c%)cl'de !h! !he e**ec!"4e)e##
de$e)d# 4ery ('ch %) (r/e! c%)d"!"%)# )d ")!er4e)!"%) #!r!e-y.
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There re #er"%'# d! )d ec%)%(e!r"c $r%ble(# ") #!'dy")- !h"# +'e#!"%). T% ##e## #'cce##& !he
re#ercher )eed# !% /)%, !he %bec!"4e %* !he ")!er4e)!"%) )d %!her #$ec"*"c de!"l#W,# !he
"( !% (el"%r!e !re)d& #!%$ !re)d& re4er#e !re)d& #h%, $re#e)ce& cl( (r/e!&
d"#c%'r-e #$ec'l!"%)& %r b'y l"!!le !"(e The re#ercher l#% )eed# !% /)%, !he c%')!er*c!'l
W,h! ,%'ld h4e h$$e)ed "* !he ")!er4e)!"%) hd )%! !/e) $lce. Al#%& re#erch %) !h"# "##'e
('#! be $lced ") !he br%der c%)!e8! %* re#erch %) e8ch)-e r!e de!er(")!"%)& ,h"ch )%!ed
b%4e& ")d"c!e# !h! "! h# )%! bee) $%##"ble !% *")d #!ble )d #"-)"*"c)! rel!"%)#h"$# be!,ee)
e8ch)-e r!e# )d )y ec%)%("c *')d(e)!l#.
A# $rc!"cl (!!er& "! "# d"**"c'l! !% (/e #,ee$")- ##e##(e)!# b%'! !he #'cce## %r *"l're %*
%**"c"l ")!er4e)!"%) %$er!"%)#. S%(e ")!er4e)!"%) %$er!"%)# h4e $r%4e) re#%')d")-ly
#'cce##*'l& ,h"le %!her# h4e bee) d"#(l *"l're#.
The #'cce## %r *"l're %* ")!er4e)!"%) "# )%! #% ('ch (!!er %* #!!"#!"cl $r%bb"l"!y # "! "#
(!!er %* h%, "! "# '#ed )d ,he!her c%)d"!"%)# re $$r%$r"!e. I# !he %bec!"4e re#%)ble
D%e# !he (r/e! l%%/ !ech)"clly re#$%)#"4e I# ")!er4e)!"%) )!"c"$!ed @"ll ) %$er!"%) l%%/
cred"ble @h! "# !he l"/ely e**ec! %) e8$ec!!"%)#
I) B3& !he @%r/")- Gr%'$ %) F%re"-) E8ch)-e Mr/e! I)!er4e)!"%) e#!bl"#hed ! !he
?er#"lle# #'(("! %* !he Gr%'$ %* Se4e) ,r)ed -")#! e8$ec!")- !%% ('ch *r%( %**"c"l")!er4e)!"%)& b'! c%)cl'ded !h! #'ch ")!er4e)!"%) c) be '#e*'l )d e**ec!"4e !%%l ")
")*l'e)c")- e8ch)-e r!e# ") !he #h%r! r')& e#$ec"lly ,he) #'ch %$er!"%)# re c%)#"#!e)! ,"!h
*')d(e)!l ec%)%("c $%l"c"e#.
U)+'e#!"%)bly& ")!er4e)!"%) %$er!"%)# re (%re l"/ely !% #'cceed ,he) !here "# c%)#"#!e)cy
,"!h *')d(e)!l ec%)%("c $%l"c"e#& b'! "! (y )%! l,y# be $%##"ble !% /)%, ,he!her !h!
c%)#"#!e)cy e8"#!#.
Al!h%'-h !!"!'de# d"**er& (%)e!ry '!h%r"!"e# ") ll %* !he (%r c%')!r"e# ")!er4e)e ") !he
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**ec! !he e8!er)l 4l'e %* !he r'$ee& ll ec%)%("c d! !he bl)ce %* $y(e)!#& e8$%r!
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$red"c!")- !he de4l'!"%) %* !he $%')d< )d !he) "# bel"e4ed !% h4e !r"--ered !he *ree *ll %* !he
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