Forign exchange- ICICI 2015.doc

8/19/2019 Forign exchange- ICICI 2015.doc

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CHAPTER-I

INTRODUCTION

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INTRODUCTION

FOREIGN EXCHANGE

(FOREX)

FOREX-The abbreviation of Foreign Exchange

What is Foreign Exchange?

Foreign Exchange is the purchase or sale of one nation’s currency in exchange for another nation’s

currencyForeign Exchange !a"es possible international transactions such as i!ports an# exports an# the

!ove!ent of capital bet$een countries

Foreign Exchange is the !oney in one country for !oney or cre#it or goo#s or services in another

countryForeign Exchange inclu#es foreign currencies% foreign che&ues an# foreign #rafts

Foreign Exchange is the transaction of international !onetary business% as bet$een govern!ents or

businesses of #ifferent countries

Foreign Exchange is the negotiable bills #ra$n in one country to be pai# in another country

Foreign Exchange is any currency other than the local currency $hich is use# in settling international

transactions

Foreign Exchange is the syste! of tra#ing in an# converting the currency of one country into that of

another country

Foreign Exchange is the transfer of cre#its to a foreign country to settle #ebts or accounts bet$een

resi#ents of the ho!e country an# those of the foreign country

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Definit ion of Foreign Exchange

The foreign capital earne# by a country’s exports(ince the currency of !any less #evelope# countries is

not accepte# by international !ar"ets%it often beco!es necessary to earn foreign exchange in or#er to buy

i!ports

- )eogr aphy *i c t i ona r y

Foreign exchange exposure an# ris" are i!portant concept in the stu#y of international finance +t is the

sensitivity of the ho!e currency value of asset% liabilities% or operating inco!es to unanticitpate# changes in

the exchange rates

Exposure exists if the ho!e currency values on an average in a particular !anner +t also exists $here

nu!erous currencies are involve#

Foreign exchange ris" is the variance of the ho!e currency value of ite!s arising on account of unanticipate#

changes in the exchange rates

The #erivative instru!ents li"e for$ar#s% futures an# options are use# to he#ge against the foreign exchange

ris" of the ,ultinational co!panies

The original #erivatives contract of +nternational Finance is the For$ar# exchange contract’ For$ar# Foreign

exchange is a tra#itional an# popular ris" !anage!ent tool to obtain protection against a#verse exchange rate

!ove!ents The exchange rate is loc"e# in’ for a specific #ate in future% $hich enables the person involve# in

the contract to plan for an# bu#get the business expenses $ith !ore certainty

For$ar# exchange !ar"et% has since the 1./0s% playe# the role of lin"ing international interest rates To#ay%

ho$ever% For$ar# contract have to share other instru!ents an# !ar"ets for arbitrage an# for he#ging These

ne$er #erivative instru!ents inclu#e Futures% Options an# ($aps


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!COPE OF THE !TUD"-

• To "no$ $hat is foreign exchange an# $hat are the various foreign exchange services

•

To "no$ ho$ the transactions relate# to foreign exchange volatility carrie# out

• To have a brief "no$le#ge about various foreign currencies an# their exchange rates co!pare to other

nations currencies

2


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NEED OF THE !TUD"

The $orl# nations are increasingly beco!ing !ore interrelate# global tra#e% an# global invest!ent These

international result in cross country flo$ of $orl# nations 3ountries hol# currencies of other countries an#

that a !ar"et% #ealing of foreign exchange results

Foreign exchange !eans reserves of foreign currencies ,ore aptly% foreign exchange refers to clai! to

foreign !oney balances Foreign exchange gives resi#ent of one country a financial clai! on other country or

countries 4ll #eposits% cre#its an# balances payable in foreign currency an# any #rafts% travelers’ che&ues%

letters of cre#it an# bills of exchange payable in foreign currency constitute foreign exchange Foreign

exchange !ar"et is the !ar"et $here !oney #eno!inate# in one currency is bought an# sol# $ith !oney

#eno!inate# in another currency Transactions in currencies of countries% parties to these transactions% rates at

$hich one currency is exchange# for other or others% ra!ificataion in these rates% #erivatives to the currencies

an# #ealing in the! an# relate# aspects constitute the foreign exchange 5in short% forex6 !ar"et

Foreign exchange transactions ta"e place $henever a country i!ports goo#s an# services% people of a

country un#erta"e visits to other counties% citi7ens of a country re!it !oney abroa# for $hatever purpose%

business units set up foreign subsi#iaries an# so on +n all these cases the nation concerne# buys relevant an#

re&uire# foreign exchange% in exchange of its currency% or #ra$s fro! foreign exchange reserves built On the

other han#% $hen a country exports goo#s an# services to another country% $hen people of other countries visit

the country% $hen citi7ens of the country settle# abroa# re!it !oney ho!e$ar#s% $hen foreign citi7ens% fir!s

an# institutions invest in the country an# $hen the country or its business co!!unity raises fun#s fro!

abroa#% the country’s currency is bought by others% giving foreign exchange% in exchange ,ultinational fir!s

operate in !ore than one country an# their operations involve !ultiple foreign currencies Their operations are

influence# by politics an# the la$s of the counties $here they operate Thus% they face higher #egree of ris" as

co!pare# to #o!estic fir!s 4 !atter of great concern for the international fir!s is to analy7e the i!plications

of the changes in interest rates% inflation rates an# exchange rates on their #ecisions an# !ini!i7e the foreign

exchange ris" The i!portance of the stu#y is to "no$ the features of foreign exchange an# the factors creating

ris" in foreign exchange transactions an# the techni&ues use# for !anaging that ris"

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O#$ECTI%E! OF THE !TUD"

To stu#y an# un#erstan# the foreign exchange in ICICI &i'ite

To stu#y an# analy7e the revenues of the co!pany $hen the exchange rates fluctuate

To analy7e inco!e state!ent an# fin# out the revenues $hen the #ollars are converte# into +n#ian

rupees

To stu#y the #ifferent types of foreign exchange exposure inclu#ing ris" an# ris" !anage!ent

techni&ues $hich the co!pany is use# to !ini!i7e the ris"

To present the fin#ings an# conclusions of the co!pany in respect of foreign exchange ris"

!anage!ent

/


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!OURCE! OF DATA

Pri'ar ata

The pri!ary #ata infor!ation is gathere# fro! ICICI &i'ite executives

!econar ata

The secon#ary #ata is collecte# fro! various financial boo"s% !aga7ines an# Wei7!ann Forex 9t# as part of

the training class un#erta"en for pro:ect

;


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&I*ITATION!

• The stu#y is confine# :ust to the foreign exchange ris" but not the total ris"

• The analysis of this stu#y is !ainly #one on the inco!e state!ents

• This stu#y is li!ite# for the year '01-'012

• +t #oes not ta"e into consi#eration all +n#ian co!panies foreign exchange ris"

• The he#ging techni&ues are stu#ie# only $hich the co!pany a#opte# to !ini!i7e foreign exchange

ris"


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FOREIGN EXCHANGE *AR,ET

The foreign exchange 'aret 5forex% FX% or c.rrenc 'aret6 is a $orl#$i#e #ecentrali7e# over-the-

counter financial !ar"et for the tra#ing of currencies Financial centers aroun# the $orl# function as anchors

of tra#ing bet$een a $i#e range of #ifferent types of buyers an# sellers aroun# the cloc"% $ith the exception of

$ee"en#s The foreign exchange !ar"et #eter!ines the relative values of #ifferent currencies

*espite the announce!ent on *ece!ber 1


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stability of the forex !ar"et going for$ar# an# ho$ $ell is +n#ia place# no$ as co!pare# to '00< an# '01 to

cope $ith large capital outflo$s if they $ere to !ateriali7e Finally% + $ill #iscuss so!e of the !a:or issues an#

concerns pertaining to the +n#ian forex !ar"et $hich are presently engaging the attention of the policy !a"ers

The pri!ary purpose of the foreign exchange is to assist international tra#e an# invest!ent% by allo$ing

businesses to convert one currency to another currency For exa!ple% it per!its a =( business to i!port

@ritish goo#s an# pay Aoun# (terling% even though the businessBs inco!e is in =( #ollars +t also supports

speculation% an# facilitates the carry tra#e% in $hich investors borro$ lo$-yiel#ing currencies an# len# 5invest

in6 high-yiel#ing currencies% an# $hich 5it has been clai!e#6 !ay lea# to loss of co!petitiveness in so!e

countries

+n a typical foreign exchange transaction% a party purchases a &uantity of one currency by paying a &uantity of

another currency The !o#ern foreign exchange !ar"et began for!ing #uring the 1.;0s $hen countries

gra#ually s$itche# to floating exchange rates fro! the previous exchange rate regi!e% $hich re!aine# fixe#

as per the @retton Woo#s syste!

*aret /i0e an 1i2.iit

The foreign exchange !ar"et is the largest an# !ost li&ui# financial !ar"et in the $orl# Tra#ers inclu#e large

ban"s% central ban"s% currency speculators% corporations% govern!ents% an# other financial institutions The

average #aily volu!e in the global foreign exchange an# relate# !ar"ets is continuously gro$ing *aily

turnover $as reporte# to be over =(C.< trillion in 4pril '010 by the @an" for +nternational (ettle!ents

Of the C.< trillion #aily global turnover% tra#ing in 9on#on accounte# for aroun# C1


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prevalent controls on the capital accounts Ho$ever% a fe$ select e!erging countries have alrea#y successfully

experi!ente# $ith the currency futures exchanges% #espite having so!e controls on the capital account

FX futures volu!e has gro$n rapi#ly in recent years% an# accounts for about ;D of the total foreign exchange

!ar"et volu!e% accor#ing to The Wall (treet >ournal Europe 58I8I0/% p '06

Foreign exchange tra#ing increase# by over a thir# in the 1' !onths to 4pril '012 an# has !ore than #ouble#

since '001 This is largely #ue to the gro$ing i!portance of foreign exchange as an asset class an# an increase

in fun# !anage!ent assets% particularly of he#ge fun#s an# pension fun#s The #iverse selection of execution

venues have !a#e it easier for retail tra#ers to tra#e in the foreign exchange !ar"et +n '00.% retail tra#ers

constitute# over 8'1D of the $hole FX !ar"et volu!es 5see retail tra#ing platfor!s6

@ecause foreign exchange is an OT3 !ar"et $here bro"ersI#ealers negotiate #irectly $ith one another% there is

no central exchange or clearing house The biggest geographic tra#ing centre is the =J% pri!arily 9on#on%

$hich accor#ing to The3ity =J esti!ates has increase# its share of global turnover in tra#itional transactions

fro! 2/D in 4pril '00; to /;D in 4pril '010 *ue to 9on#onBs #o!inance in the !ar"et% a particular

currencyBs &uote# price is usually the 9on#on !ar"et price For instance% $hen the +,F calculates the value of

its (*Rs every #ay% they use the 9on#on !ar"et prices at noon that #ay

1'

To3 45 c.rrenc traer/

D of overall volu!e% ,ay '018

Ran Na'e *aret /hare

1 *eutsche @an" 1;0/D

' =@( 4) 1'0D

@arclays 3apital 110


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*aret 3artici3ant/

=nli"e a stoc" !ar"et% the foreign exchange !ar"et is #ivi#e# into levels of access 4t the top is the inter-ban"

!ar"et% $hich is !a#e up of the largest co!!ercial ban"s an# securities #ealers Within the inter-ban" !ar"et%

sprea#s% $hich are the #ifference bet$een the bi# an# as" prices% are ra7or sharp an# usually unavailable% an#

not "no$n to players outsi#e the inner circle The #ifference bet$een the bi# an# as" prices $i#ens 5fro! 0-1

pip to 1-' pips for so!e currencies such as the E=R6 This is #ue to volu!e +f a tra#er can guarantee large

nu!bers of transactions for large a!ounts% they can #e!an# a s!aller #ifference bet$een the bi# an# as"

price% $hich is referre# to as a better sprea# The levels of access that !a"e up the foreign exchange !ar"et

are #eter!ine# by the si7e of the GlineG 5the a!ount of !oney $ith $hich they are tra#ing6 The top-tier inter-

ban" !ar"et accounts for 8D of all transactions 4fter that there are usually s!aller ban"s% follo$e# by large

!ulti-national corporations 5$hich nee# to he#ge ris" an# pay e!ployees in #ifferent countries6% large he#ge

fun#s% an# even so!e of the retail FX-!etal !ar"et !a"ers 4ccor#ing to )alati an# ,elvin% KAension fun#s%

insurance co!panies% !utual fun#s% an# other institutional investors have playe# an increasingly i!portant

role in financial !ar"ets in general% an# in FX !ar"ets in particular% since the early '000sL 5'0026 +n a##ition%

he notes% KHe#ge fun#s have gro$n !ar"e#ly over the '001M'002 perio# in ter!s of both nu!ber an# overall

si7eL 3entral ban"s also participate in the foreign exchange !ar"et to align currencies to their econo!ic nee#s

#an/

The interban" !ar"et caters for both the !a:ority of co!!ercial turnover an# large a!ounts of speculative

tra#ing every #ay 4 large ban" !ay tra#e billions of #ollars #aily (o!e of this tra#ing is un#erta"en on behalf

of custo!ers% but !uch is con#ucte# by proprietary #es"s% tra#ing for the ban"Bs o$n account =ntil recently%

foreign exchange bro"ers #i# large a!ounts of business% facilitating interban" tra#ing an# !atching

anony!ous counterparts for large fees To#ay% ho$ever% !uch of this business has !ove# on to !ore efficient

electronic syste!s The bro"er s&ua$" box lets tra#ers listen in on ongoing interban" tra#ing an# is hear# in!ost tra#ing roo!s% but turnover is noticeably s!aller than :ust a fe$ years ago

Co''ercia1 co'3anie/

4n i!portant part of this !ar"et co!es fro! the financial activities of co!panies see"ing foreign exchange to

pay for goo#s or services 3o!!ercial co!panies often tra#e fairly s!all a!ounts co!pare# to those of ban"s

1

http://en.wikipedia.org/wiki/Commercial_bankshttp://en.wikipedia.org/wiki/Investment_bankhttp://en.wikipedia.org/wiki/Percentage_in_pointhttp://en.wikipedia.org/wiki/Top-tierhttp://en.wikipedia.org/w/index.php?title=Inter-bank_market&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Inter-bank_market&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Broker_squawk_box&action=edit&redlink=1http://en.wikipedia.org/wiki/Trading_roomhttp://en.wikipedia.org/wiki/Commercial_bankshttp://en.wikipedia.org/wiki/Investment_bankhttp://en.wikipedia.org/wiki/Percentage_in_pointhttp://en.wikipedia.org/wiki/Top-tierhttp://en.wikipedia.org/w/index.php?title=Inter-bank_market&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Inter-bank_market&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Broker_squawk_box&action=edit&redlink=1http://en.wikipedia.org/wiki/Trading_room


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or speculators% an# their tra#es often have little short ter! i!pact on !ar"et rates evertheless% tra#e flo$s

are an i!portant factor in the long-ter! #irection of a currencyBs exchange rate (o!e !ultinational co!panies

can have an unpre#ictable i!pact $hen very large positions are covere# #ue to exposures that are not $i#ely

"no$n by other !ar"et participants

Centra1 6an/

ational central ban"s play an i!portant role in the foreign exchange !ar"ets They try to control the !oney

supply% inflation% an#Ior interest rates an# often have official or unofficial target rates for their currencies They

can use their often substantial foreign exchange reserves to stabili7e the !ar"et evertheless% the

effectiveness of central ban" Gstabili7ing speculationG is #oubtful because central ban"s #o not go ban"rupt if

they !a"e large losses% li"e other tra#ers $oul#% an# there is no convincing evi#ence that they #o !a"e a profit

tra#ing

Forex Fixing

Forex fixing is the #aily !onetary exchange rate fixe# by the national ban" of each country The i#ea is that

central ban"s use the fixing ti!e an# exchange rate to evaluate behavior of their currency Fixing exchange

rates reflects the real value of e&uilibriu! in the forex !ar"et @an"s% #ealers an# online foreign exchange

tra#ers use fixing rates as a tren# in#icator

The !ere expectation or ru!or of central ban" intervention !ight be enough to stabili7e a currency% but

aggressive intervention !ight be use# several ti!es each year in countries $ith a #irty float currency regi!e

3entral ban"s #o not al$ays achieve their ob:ectives The co!bine# resources of the !ar"et can easily

over$hel! any central ban" (everal scenarios of this nature $ere seen in the 1..'M. ER, collapse% an# in

!ore recent ti!es in (outheast 4sia

Retai1 foreign exchange 6roer/

Retail tra#ers 5in#ivi#uals6 constitute a gro$ing seg!ent of this !ar"et% both in si7e an# i!portance

3urrently% they participate in#irectly through bro"ers or ban"s Retail bro"ers% $hile largely controlle# an#

regulate# in the =(4 by the 3FT3 an# F4 have in the past been sub:ecte# to perio#ic foreign exchange

sca!s To #eal $ith the issue% the F4 an# 3FT3 began 5as of '01'6 i!posing stricter re&uire!ents%

particularly in relation to the a!ount of et 3apitali7ation re&uire# of its !e!bers 4s a result !any of the

s!aller% an# perhaps &uestionable bro"ers are no$ gone12

http://en.wikipedia.org/wiki/Money_supplyhttp://en.wikipedia.org/wiki/Money_supplyhttp://en.wikipedia.org/wiki/Interventionhttp://en.wikipedia.org/wiki/Managed_float_regimehttp://en.wikipedia.org/wiki/European_Exchange_Rate_Mechanismhttp://en.wikipedia.org/wiki/Commodity_brokerhttp://en.wikipedia.org/wiki/Commodity_Futures_Trading_Commissionhttp://en.wikipedia.org/wiki/National_Futures_Associationhttp://en.wikipedia.org/wiki/National_Futures_Associationhttp://en.wikipedia.org/wiki/Forex_scamhttp://en.wikipedia.org/wiki/Forex_scamhttp://en.wikipedia.org/wiki/Money_supplyhttp://en.wikipedia.org/wiki/Money_supplyhttp://en.wikipedia.org/wiki/Interventionhttp://en.wikipedia.org/wiki/Managed_float_regimehttp://en.wikipedia.org/wiki/European_Exchange_Rate_Mechanismhttp://en.wikipedia.org/wiki/Commodity_brokerhttp://en.wikipedia.org/wiki/Commodity_Futures_Trading_Commissionhttp://en.wikipedia.org/wiki/National_Futures_Associationhttp://en.wikipedia.org/wiki/Forex_scamhttp://en.wikipedia.org/wiki/Forex_scam


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There are t$o !ain types of retail FX bro"ers offering the opportunity for speculative currency tra#ingN

brokers an# dealers or market makers Brokers serve as an agent of the custo!er in the broa#er FX !ar"et% by

see"ing the best price in the !ar"et for a retail or#er an# #ealing on behalf of the retail custo!er They charge

a co!!ission or !ar"-up in a##ition to the price obtaine# in the !ar"et Dealers or market makers% by

contrast% typically act as principal in the transaction versus the retail custo!er% an# &uote a price they are

$illing to #eal atthe custo!er has the choice $hether or not to tra#e at that price

+n assessing the suitability of an FX tra#ing service% the custo!er shoul# consi#er the ra!ifications of $hether

the service provi#er is acting as principal or agent When the service provi#er acts as agent% the custo!er is

generally assure# of a "no$n cost above the best inter-#ealer FX rate When the service provi#er acts as

principal% no co!!ission is pai#% but the price offere# !ay not be the best available in the !ar"etsince the

service provi#er is ta"ing the other si#e of the transaction% a conflict of interest !ay occur

Non-6an foreign exchange co'3anie/

on-ban" foreign exchange co!panies offer currency exchange an# international pay!ents to private

in#ivi#uals an# co!panies These are also "no$n as foreign exchange bro"ers but are #istinct in that they #o

not offer speculative tra#ing but currency exchange $ith pay!ents +e% there is usually a physical #elivery of

currency to a ban" account (en# ,oney Ho!e offers an in-#epth co!parison into the services offere# by all

the !a:or non-ban" foreign exchange co!panies

+t is esti!ate# that in the =J% 12D of currency transfersIpay!ents are !a#e via Foreign Exchange 3o!panies

These co!paniesB selling point is usually that they $ill offer better exchange rates or cheaper pay!ents than

the custo!erBs ban" These co!panies #iffer fro! ,oney TransferIRe!ittance 3o!panies in that they

generally offer higher-value services

*one tran/fer7re'ittance co'3anie/

,oney transfer co!paniesIre!ittance co!panies perfor! high-volu!e lo$-value transfers generally by

econo!ic !igrants bac" to their ho!e country +n '00;% the 4ite )roup esti!ate# that there $ere C/. billion

of re!ittances 5an increase of


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Traing characteri/tic/

There is no unifie# or centrally cleare# !ar"et for the !a:ority of FX tra#es% an# there is very little cross-

bor#er regulation *ue to the over-the-counter 5OT36 nature of currency !ar"ets% there are rather a nu!ber of

interconnecte# !ar"etplaces% $here #ifferent currencies instru!ents are tra#e# This i!plies that there is not a

single exchange rate but rather a nu!ber of #ifferent rates 5prices6% #epen#ing on $hat ban" or !ar"et !a"er

is tra#ing% an# $here it is +n practice the rates are often very close% other$ise they coul# be exploite# by

arbitrageurs instantaneously *ue to 9on#onBs #o!inance in the !ar"et% a particular currencyBs &uote# price is

usually the 9on#on !ar"et price 4 :oint venture of the 3hicago ,ercantile Exchange an# Reuters% calle#

Fx!ar"etspace opene# in '00; an# aspire# but faile# to the role of a central !ar"et clearing !echanis!

The !ain tra#ing center is 9on#on% but e$ or" % To"yo% Hong Jong an# (ingapore are all i!portant centers

as $ell @an"s throughout the $orl# participate 3urrency tra#ing happens continuously throughout the #ayQ as

the 4sian tra#ing session en#s% the European session begins% follo$e# by the orth 4!erican session an# then

bac" to the 4sian session% exclu#ing $ee"en#s

Fluctuations in exchange rates are usually cause# by actual !onetary flo$s as $ell as by expectations of

changes in !onetary flo$s cause# by changes in gross #o!estic pro#uct 5)*A6 gro$th% inflation 5 purchasing

po$er parity theory6% interest rates 5interest rate parity% *o!estic Fisher effect% +nternational Fisher effect6%

bu#get an# tra#e #eficits or surpluses% large cross-bor#er ,P4 #eals an# other !acroecono!ic con#itions

,a:or ne$s is release# publicly% often on sche#ule# #ates% so !any people have access to the sa!e ne$s at the

sa!e ti!e Ho$ever% the large ban"s have an i!portant a#vantageQ they can see their custo!ersB or#er flo$

On the spot !ar"et% accor#ing to the @+( stu#y% the !ost heavily tra#e# pro#ucts $ereN

• E=R=(*N ';D

• =(*>AN 1D

• )@A=(* 5also calle# cable6N 1'D

an# the =( currency $as involve# in


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Tra#ing in the euro has gro$n consi#erably since the currencyBs creation in >anuary 1...% an# ho$ long the

foreign exchange !ar"et $ill re!ain #ollar-centere# is open to #ebate =ntil recently% tra#ing the euro versus a

non-European currency =( $oul# have usually involve# t$o tra#esN E=R=(* an# =(* The exception to this

is E=R>A% $hich is an establishe# tra#e# currency pair in the interban" spot !ar"et 4s the #ollarBs value has

ero#e# #uring '00


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!elting potN in a large an# ever-changing !ix of current events% supply an# #e!an# factors are constantly

shifting% an# the price of one currency in relation to another shifts accor#ingly o other !ar"et enco!passes

5an# #istills6 as !uch of $hat is going on in the $orl# at any given ti!e as foreign exchange

(upply an# #e!an# for any given currency% an# thus its value% are not influence# by any single ele!ent% but

rather by several These ele!ents generally fall into three categoriesN econo!ic factors% political con#itions

an# !ar"et psychology

Econo'ic factor/

These inclu#eN 5a6econo!ic policy% #isse!inate# by govern!ent agencies an# central ban"s% 5b6econo!ic

con#itions% generally reveale# through econo!ic reports% an# other econo!ic in#icators

•

Econo!ic policy co!prises govern!ent fiscal policy 5bu#getIspen#ing practices6 an# !onetary policy5the !eans by $hich a govern!entBs central ban" influences the supply an# GcostG of !oney% $hich is

reflecte# by the level of interest rates6

• )overn!ent bu#get #eficits or surplusesN The !ar"et usually reacts negatively to $i#ening govern!ent

bu#get #eficits% an# positively to narro$ing bu#get #eficits The i!pact is reflecte# in the value of a

countryBs currency

• @alance of tra#e levels an# tren#sN The tra#e flo$ bet$een countries illustrates the #e!an# for goo#s

an# services% $hich in turn in#icates #e!an# for a countryBs currency to con#uct tra#e (urpluses an#

#eficits in tra#e of goo#s an# services reflect the co!petitiveness of a nationBs econo!y For exa!ple%

tra#e #eficits !ay have a negative i!pact on a nationBs currency

• +nflation levels an# tren#sN Typically a currency $ill lose value if there is a high level of inflation in the

country or if inflation levels are perceive# to be rising This is because inflation ero#es purchasing

po$er % thus #e!an#% for that particular currency Ho$ever% a currency !ay so!eti!es strengthen $hen

inflation rises because of expectations that the central ban" $ill raise short-ter! interest rates to

co!bat rising inflation

• Econo!ic gro$th an# healthN Reports such as )*A% e!ploy!ent levels% retail sales% capacity utili7ation

an# others% #etail the levels of a countryBs econo!ic gro$th an# health )enerally% the !ore healthy an#

robust a countryBs econo!y% the better its currency $ill perfor!% an# the !ore #e!an# for it there $ill

be

• Aro#uctivity of an econo!yN +ncreasing pro#uctivity in an econo!y shoul# positively influence the

value of its currency +ts effects are !ore pro!inent if the increase is in the tra#e# sector

1


19/36

Po1itica1 conition/

+nternal% regional% an# international political con#itions an# events can have a profoun# effect on currency

!ar"ets

4ll exchange rates are susceptible to political instability an# anticipations about the ne$ ruling party Aoliticalupheaval an# instability can have a negative i!pact on a nationBs econo!y For exa!ple% #estabili7ation of

coalition govern!ents in Aa"istan an# Thailan# can negatively affect the value of their currencies (i!ilarly% in

a country experiencing financial #ifficulties% the rise of a political faction that is perceive# to be fiscally

responsible can have the opposite effect 4lso% events in one country in a region !ay spur positiveInegative

interest in a neighboring country an#% in the process% affect its currency

*aret 3/cho1og

,ar"et psychology an# tra#er perceptions influence the foreign exchange !ar"et in a variety of $aysN

• Flights to &ualityN =nsettling international events can lea# to a Gflight to &uality%G $ith investors

see"ing a Gsafe havenG There $ill be a greater #e!an#% thus a higher price% for currencies perceive# as

stronger over their relatively $ea"er counterparts The =( #ollar % ($iss franc an# gol# have been

tra#itional safe havens #uring ti!es of political or econo!ic uncertainty

• 9ong-ter! tren#sN 3urrency !ar"ets often !ove in visible long-ter! tren#s 4lthough currencies #o

not have an annual gro$ing season li"e physical co!!o#ities% business cycles #o !a"e the!selves

felt 3ycle analysis loo"s at longer-ter! price tren#s that !ay rise fro! econo!ic or political tren#s

• G@uy the ru!or% sell the factGN This !ar"et truis! can apply to !any currency situations +t is the

ten#ency for the price of a currency to reflect the i!pact of a particular action before it occurs an#%

$hen the anticipate# event co!es to pass% react in exactly the opposite #irection This !ay also be

referre# to as a !ar"et being Goversol#G or GoverboughtG To buy the ru!or or sell the fact can also be

an exa!ple of the cognitive bias "no$n as anchoring% $hen investors focus too !uch on the relevance

of outsi#e events to currency prices

• Econo!ic nu!bersN While econo!ic nu!bers can certainly reflect econo!ic policy% so!e reports an#

nu!bers ta"e on a talis!an-li"e effectN the nu!ber itself beco!es i!portant to !ar"et psychology an#

!ay have an i!!e#iate i!pact on short-ter! !ar"et !oves GWhat to $atchG can change over ti!e +n

recent years% for exa!ple% !oney supply% e!ploy!ent% tra#e balance figures an# inflation nu!bers

have all ta"en turns in the spotlight

1.

http://en.wikipedia.org/wiki/Politicalhttp://en.wikipedia.org/wiki/Market_psychologyhttp://en.wikipedia.org/wiki/Flight_to_qualityhttp://en.wikipedia.org/wiki/Safe_havenhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Swiss_franchttp://en.wikipedia.org/wiki/Swiss_franchttp://en.wikipedia.org/wiki/Gold_as_investmenthttp://en.wikipedia.org/wiki/Market_trendshttp://en.wikipedia.org/wiki/Business_cyclehttp://en.wikipedia.org/wiki/Cognitive_biashttp://en.wikipedia.org/wiki/Anchoringhttp://en.wikipedia.org/wiki/Economic_indicatorshttp://en.wikipedia.org/wiki/Money_supplyhttp://en.wikipedia.org/wiki/Money_supplyhttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Trade_balancehttp://en.wikipedia.org/wiki/Inflationhttp://en.wikipedia.org/wiki/Politicalhttp://en.wikipedia.org/wiki/Market_psychologyhttp://en.wikipedia.org/wiki/Flight_to_qualityhttp://en.wikipedia.org/wiki/Safe_havenhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Swiss_franchttp://en.wikipedia.org/wiki/Gold_as_investmenthttp://en.wikipedia.org/wiki/Market_trendshttp://en.wikipedia.org/wiki/Business_cyclehttp://en.wikipedia.org/wiki/Cognitive_biashttp://en.wikipedia.org/wiki/Anchoringhttp://en.wikipedia.org/wiki/Economic_indicatorshttp://en.wikipedia.org/wiki/Money_supplyhttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Trade_balancehttp://en.wikipedia.org/wiki/Inflation


20/36

• Technical tra#ing consi#erationsN 4s in other !ar"ets% the accu!ulate# price !ove!ents in a currency

pair such as E=RI=(* can for! apparent patterns that tra#ers !ay atte!pt to use ,any tra#ers stu#y

price charts in or#er to i#entify such patterns

A1gorith'ic traing in foreign exchange

Electronic tra#ing is gro$ing in the FX !ar"et% an# algorith!ic tra#ing is beco!ing !uch !ore co!!on

4ccor#ing to financial consultancy 3elent esti!ates% by '00< up to '8D of all tra#es by volu!e $ill be

execute# using algorith!% up fro! about 1


21/36

Foreign currency futures are exchange tra#e# for$ar# transactions $ith stan#ar# contract si7es an# !aturity

#ates for exa!ple% C1000 for next ove!ber at an agree# rate Futures are stan#ar#i7e# an# are usually

tra#e# on an exchange create# for this purpose The average contract length is roughly !onths Futures

contracts are usually inclusive of any interest a!ounts

O3tion

4 foreign exchange option 5co!!only shortene# to :ust FX option6 is a #erivative $here the o$ner has the

right but not the obligation to exchange !oney #eno!inate# in one currency into another currency at a pre-

agree# exchange rate on a specifie# #ate The FX options !ar"et is the #eepest% largest an# !ost li&ui# !ar"et

for options of any "in# in the $orl#

'1


22/36

CO*PAN" PROF I&E

+3+3+ @an" is +n#iaBs largest private sector ban" $ith total assets of Rs /%2/1'. billion 5=(C 10 billion6 at

,arch 1% '018 an# profit after tax Rs 111;8 billion 5=(C 1%;apan 4sia to be liste# on the (E

4fter consi#eration of various corporate structuring alternatives in the context of the e!erging co!petitive

scenario in the +n#ian ban"ing in#ustry% an# the !ove to$ar#s universal ban"ing% the !anage!ents of +3+3+

an# +3+3+ @an" for!e# the vie$ that the !erger of +3+3+ $ith +3+3+ @an" $oul# be the opti!al strategic

''


23/36

alternative for both entities% an# $oul# create the opti!al legal structure for the +3+3+ groupBs universal

ban"ing strategy The !erger $oul# enhance value for +3+3+ sharehol#ers through the !erge# entityBs access

to lo$-cost #eposits% greater opportunities for earning fee-base# inco!e an# the ability to participate in the

pay!ents syste! an# provi#e transaction-ban"ing services The !erger $oul# enhance value for +3+3+ @an"

sharehol#ers through a large capital base an# scale of operations% sea!less access to +3+3+Bs strong corporate

relationships built up over five #eca#es% entry into ne$ business seg!ents% higher !ar"et share in various

business seg!ents% particularly fee-base# services% an# access to the vast talent pool of +3+3+ an# its

subsi#iaries

+n October '001% the @oar#s of *irectors of +3+3+ an# +3+3+ @an" approve# the !erger of +3+3+ an# t$o of

its $holly-o$ne# retail finance subsi#iaries% +3+3+ Aersonal Financial (ervices 9i!ite# an# +3+3+ 3apital

(ervices 9i!ite#% $ith +3+3+ @an" The !erger $as approve# by sharehol#ers of +3+3+ an# +3+3+ @an" in

>anuary '00'% by the High 3ourt of )u:arat at 4h!e#aba# in ,arch '00'% an# by the High 3ourt of >u#icature

at ,u!bai an# the Reserve @an" of +n#ia in 4pril '00' 3onse&uent to the !erger% the +3+3+ groupBs

financing an# ban"ing operations% both $holesale an# retail% have been integrate# in a single entity

ICICI Gro.3 Co'3anie/

+3+3+ )roup

httpNII$$$icicigroupco!paniesco!

+3+3+ Aru#ential 9ife +nsurance 3o!pany

httpNII$$$iciciprulifeco!IpublicI#efaultht

!

+3+3+ (ecurities

httpNII$$$icicisecuritiesco!

+3+3+ 9o!bar# )eneral +nsurance 3o!pany

httpNII$$$icicilo!bar#co!

+3+3+ Aru#ential 4,3 P Trust

httpNII$$$iciciprua!cco!

+3+3+ enture

httpNII$$$iciciventureco!

'

http://www.icicigroupcompanies.com/http://www.iciciprulife.com/public/default.htmhttp://www.iciciprulife.com/public/default.htmhttp://www.icicisecurities.com/http://www.icicilombard.com/http://www.icicipruamc.com/http://www.iciciventure.com/http://www.icicigroupcompanies.com/http://www.iciciprulife.com/public/default.htmhttp://www.iciciprulife.com/public/default.htmhttp://www.icicisecurities.com/http://www.icicilombard.com/http://www.icicipruamc.com/http://www.iciciventure.com/


24/36

+3+3+ *irect

httpNII$$$icici#irectco!

+3+3+ Foun#ation

httpNII$$$icicifoun#ationorg

*isha Financial 3ounselling

httpNII$$$icicifoun#ationorg

#oar *e'6er/

*r; *; ,; !har'a< Chair'an

;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;

*r; Di1ee3 Cho/i

;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;

*r; Ho'i R; ,h./rohan

;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;

*r; *;!; Ra'achanran

;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;

Dr; T./haar !hah

;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;

*r; %; ,; !har'a

;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;

*r; %; !riar

;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;

*r; A1o Tanon

*/; Chana ,ochhar<

*anaging Director + CEO

;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;

*r; N; !; ,annan<

Exec.ti=e Director

;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;

*r; ,; Ra'.'ar<

Exec.ti=e Director

;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;

*r; Ra>i= !a6har8a1<

Exec.ti=e Director

'2

http://www.icicidirect.com/http://www.icicifoundation.org/http://www.icicifoundation.org/http://www.icicidirect.com/http://www.icicifoundation.org/http://www.icicifoundation.org/


25/36

//

4$ar#s - '018

+3+3+ @an"

• ,s 3han#a Jochhar feature# in Fortune +n#ia’s list of ,ost Ao$erful Wo!en in

@usiness

• +3+3+ @an" $on a$ar#s in the categories of =se of Technology for Frau# Arevention

an# A4 ,anage!ent’ a!ong large ban"s an# Evangelising Technology 4#option’ a!ong

large ban"s at the +*R@T @an"ing Technology Excellence 4$ar#s '018

• ,s 3han#a Jochhar $as conferre# $ith the '018 4sia )a!e 3hangers 4$ar#

• +3+3+ @an" $on the a$ar# of BTop @orro$ers in 4sia - +n#iaB at '018 Fixe# +nco!e

Research Aoll in a poll con#ucte# by Finance4sia !aga7ine

• +3+3+ @an" $on @est Arivate (ector @an"’ un#er )lobal @usiness’ category at the

*un P @ra#street @an"ing 4$ar#s '018’

• ,s 3han#a Jochhar feature# in the list of Ti!e 100 ,ost +nfluential Aeople% '018’

• ,s 3han#a Jochhar feature# in Forbes 4sia ,aga7ine’s '018 list of 4sia’s 80 Ao$er

@usiness$o!en an# in the list of 3@3 T1


26/36

//

• +3+3+ @an" $on an a$ar# in the @F(+ 9ea#ership (u!!it P 4$ar#s in the B@est

Ahone @an"ing for En#-users’ category

• +3+3+ @an" $on in six categories an# $as the first runner-up in one category a!ong

Arivate (ector @an"s at +@4 @an"ing Technology 4$ar#s% '018 The ban" $as #eclare#

$inner in the six categories of @est Technology @an" of the ear% @est use of *ata% @est Ris"

,anage!ent +nitiatives% @est use of Technology in Training% Hu!an Resources an# e-

9earning initiatives% @est Financial +nclusion +nitiative an# @est use of *igital an# 3hannels

Technology +3+3+ @an" $as the first runner-up in @est use of Technology to Enhance

3usto!er Experience

A8ar/ - ?54@

ICICI #an

• ,s 3han#a Jochhar receive# an honorary *octor of 9a$s fro! 3arleton =niversity%

3ana#a The university conferre# this a$ar# on ,s Jochhar in recognition of her pioneering

$or" in the financial sector% effective lea#ership in a ti!e of econo!ic crisis an# support for

engage# business practices

• ,s 3han#a Jochhar feature# in The Telegraph 5=J6 list of B11 !ost i!portant

$o!en in financeB

• +3+3+ @an" has been recognise# as one of the BTop 3o!panies for 9ea#ersB in +n#ia in

a stu#y con#ucte# by 4on He$itt

• +*R@T has given a$ar#s to +3+3+ @an" in the categories of B(ocial ,e#ia an# ,obile

@an"ingB an#B @usiness +ntelligence +nitiativesB

• +3+3+ @an" $on the a$ar# for the @est @an" - )lobal @usiness *evelop!ent 5Arivate

(ector6 in the *un P @ra#street - Aolaris Financial Technology @an"ing 4$ar#s '012

• +3+3+ @an" $as a$ar#e# the 3ertificate of Recognition as one of the Top 8

3o!panies in 3orporate )overnance in the 12th +3(+ 5The +nstitute of 3o!pany (ecretaries

of +n#ia6 ational 4$ar#s for 3orporate )overnance

• +3+3+ @an" has been honoure# as The @est (ervice Arovi#er - Ris" ,anage!ent%

+n#ia at The 4sset Triple 4 Transaction @an"ing% Treasury% Tra#e an# Ris" ,anage!ent

4$ar#s '012

• ,r Ra"esh >ha has been ran"e# as the @est 3FO in +n#ia at the 12th 4nnual Finance

4siaBs @est ,anage# 3o!panies Aoll

• +3+3+ @an" has $on The 3orporate Treasurer 4$ar#s '01 in the categories of B@est

3ash ,anage!ent @an" in +n#iaB P B@est Tra#e Finance @an" in +n#iaB


27/36

//

• +3+3+ @an" has been a$ar#e# the B@est Retail @an" in +n#iaB% B@est ,icrofinance

@usinessB an# @est Retail @an"ing @ranch +nnovationB un#er the BExcellence in Retail

Financial (ervices a$ar#s '012B by The 4sian @an"er

• ,s 3han#a Jochhar% ,* P 3EO% +3+3+ @an"% has been na!e# a!ong FortuneBs 80

!ost po$erful $o!en in business for the fourth consecutive year

• ,s 3han#a Jochhar% ,* an# 3EO receive# the B,u!bai Wo!en Of The *eca#eB

a$ar# by 4((O3H4,

+3+3+ @an"% +n#ia’s largest private sector ban"% to#ay announce# the launch of +n#ia’s only

cre#it car# $ith a uni&ue transparent #esign an# a #istinctive loo" The +3+3+ @an" 3oral

4!erican Express 3re#it 3ar#’ is the latest a##ition to the @an"’s exclusive )e!stone

3ollection’ of cre#it car#s

!3eaing at the 1a.nch< *r; Ra>i= !a6har8a1< Exec.ti=e Director< ICICI #an /ai< G4t

+3+3+ @an"% it is our constant en#eavour to #eliver innovative% po$erful an# #istinctive value

propositions to our #iscerning custo!ers We are #elighte# to launch the +3+3+ @an" 3oral

4!erican Express 3re#it 3ar#’% the only car# in the country $ith a youthful% transparent

#esign 4i!e# at provi#ing significant lifestyle benefits% this car# re-affir!s our co!!it!ent

to bring forth innovative services to our custo!ers We are also intro#ucing a host of exciting

privileges inclu#ing an intro#uctory exten#e# cre#it perio# offer an# bonus re$ar# points on

online transactions We believe this car# $ill be yet another co!pelling a##ition to our

)e!stone collection of cre#it car#sG

*/; !ie8 Choo Ng< !enior %ice Pre/ient< Hea of G1o6a1 Net8or Partner/hi3/< A/ia<

A'erican Ex3re// Internationa1< Inc; /ai


28/36

//

*r; !an>a Ri/hi< Pre/ient< !o.th A/ia< A'erican Ex3re//< /ai< KThis launch !ar"s a

further strengthening of the relationship bet$een +3+3+ @an" an# 4!erican Express We

alrea#y partner $ith +3+3+ @an" on custo!er loyalty progra!s% insurance services% retail

ban"ing services as $ell as initiatives to expan# car# accepting !erchants The launch of the

+3+3+ @an" 3oral 4!erican Express 3ar# co!bines the strengths an# capabilities of both

organi7ations to offer an exciting ne$ pay!ent choice to custo!ers

The +3+3+ @an" 3oral 4!erican ExpressV 3re#it 3ar# offers a $i#e range of attractive

benefits to its car# !e!bersN

• Exten#e# 3re#it Aerio#Q a uni&ue proposition offering car# !e!bers ability to carry

over the retail purchase balances in first t$o billing state!ents by si!ply paying the

!ini!u! a!ount #ue o interest shall be charge# in such cases an# the total a!ount #ue

shall be payable as per the thir# billing state!ent Tn3 apply% for co!plete #etails please

visit $$$iciciban"co!

• 2 A4@43J points per Rs100 spent on #ining% groceries an# at super!ar"ets%

A4@43J points per Rs100 of online spen#s an# ' A4@43J points per Rs100 on other

spen#s

• 3o!pli!entary !ovie tic"ets $ith Bbuy one get one freeB offer

on $$$boo"!ysho$co!

• 3o!pli!entary visits to 4ltitu#e lounges at ,u!bai an# *elhi airports

• ,ini!u! 18D #iscount on #ining bills at lea#ing restaurants across +n#ia $ith the

+3+3+ @an" 3ulinary Treats’ progra!!e

• o fuel surcharge on fuel transactions at HA39 fuel stations

O%ER%IE ICICI Gro.3

+3+3+ )roup offers a $i#e range of ban"ing pro#ucts an# financial services to corporate an#

retail custo!ers through a variety of #elivery channels an# through its specialise# group

co!panies an# subsi#iaries in the areas of personal ban"ing% invest!ent ban"ing% life an#

general insurance% venture capital an# asset !anage!ent With a strong custo!er focus% the

+3+3+ )roup 3o!panies have !aintaine# an# enhance# their lea#ership positions in their

respective sectors

+3+3+ @an" is +n#iaBs secon#-largest ban" $ith total assets of Rs 2%;/2; billion 5=(C .

http://www.icicibank.com/http://www.icicibank.com/aboutus/bms-disclaimer.page?http://www.icicibank.com/http://www.icicibank.com/http://www.icicibank.com/aboutus/bms-disclaimer.page?http://www.icicibank.com/


29/36

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billion6 at ,arch 1% '01' an# profit after tax Rs /2/8 billion 5=(C 1%';1 !illion6 for the

year en#e# ,arch 1% '01' The @an" has a net$or" of '%;.1 branches an# 10%0'1 4T,s in

+n#ia% an# has a presence in 1. countries% inclu#ing +n#ia

+3+3+ Aru#ential 9ife +nsurance is a :oint venture bet$een +3+3+ @an"% a pre!ier financial

po$erhouse% an# Aru#ential plc% a lea#ing international financial services group

hea#&uartere# in the =nite# Jing#o! +3+3+ Aru#ential 9ife $as a!ongst the first private

sector insurance co!panies to begin operations in *ece!ber '000 after receiving approval

fro! +nsurance Regulatory *evelop!ent 4uthority 5+R*46 +3+3+ Aru#ential 9ifeBs capital

stan#s at Rs 2;.1 billion 5as of ,arch 1% '01'6 $ith +3+3+ @an" an# Aru#ential plc

hol#ing ;2D an# '/D sta"e respectively For F '01'% the co!pany garnere# Rs120''

billion of total pre!iu!s an# has un#er$ritten over 1 !illion policies since inception The

co!pany has assets hel# over Rs ;0;;1 billion as on ,arch 1% '01'

+3+3+ 9o!bar# )eneral +nsurance 3o!pany% is a :oint venture bet$een +3+3+ @an" 9i!ite#%

+n#iaBs secon# largest ban" $ith consoli#ate# total assets of over =(* .1 billion at ,arch 1%

'01' an# Fairfax Financial Hol#ings 9i!ite#% a 3ana#a base# =(* 0 billion #iversifie#

financial services co!pany engage# in general insurance% reinsurance% insurance clai!s

!anage!ent an# invest!ent !anage!ent +3+3+ 9o!bar# )+3 9t# is the largest private

sector general insurance co!pany in +n#ia $ith a )ross Written Are!iu! 5)WA6 of Rs

8%8< crore for the year en#e# ,arch 1% '01' The co!pany issue# over ;/ la"h policies

an# settle# over 22 la"h clai!s an# has a clai! #isposal ratio of ..D 5percentage of clai!s

settle# against clai!s reporte#6 as on ,arch 1% '01'

+3+3+ (ecurities 9t# is the largest integrate# securities fir! covering the nee#s of corporate

an# retail custo!ers through invest!ent ban"ing% institutional bro"ing% retail bro"ing an#

financial pro#uct #istribution businesses 4!ong the !any a$ar#s that +3+3+ (ecurities has

$on% the note$orthy a$ar#s for '01' $ereN 4sia!oney @est *o!estic E&uity House for

'01'Q B@(E +AF *P@ E&uity @ro"ing 4$ar#s '01'B un#er t$o categoriesN- @est E&uity

@ro"ing House - 3ash (eg!ent an# 9argest E-@ro"ing HouseQ the 3hief 9earning Officer

4$ar# fro! Worl# HR* 3ongress for +nnovation in 9earning category +*) +n#iaBs 3+O

!aga7ine has recogni7e# +3+3+ (ecurities as a recipient of 3+O 100 a$ar# in '00.% '010%

'011 an# '01' +-(ec $on this a$ar#s 2 ti!es in a ro$ for $hich the 3+O Hall of Fa!e

a$ar# $as a##itionally conferre# in '01'

http://www.iciciprulife.com/https://www.icicilombard.com/http://www.icicisecurities.com/http://www.iciciprulife.com/https://www.icicilombard.com/http://www.icicisecurities.com/


30/36

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+3+3+ (ecurities Ari!ary *ealership 9i!ite# 5+-(ec A*’6 is the largest pri!ary #ealer in

)overn!ent (ecurities +t is an ac"no$le#ge# lea#er in the +n#ian fixe# inco!e an# !oney

!ar"ets% $ith a strong franchise across the spectru! of interest rate pro#ucts an# services -

institutional sales an# tra#ing% resource !obilisation% portfolio !anage!ent services an#

research One of the first entities to be grante# pri!ary #ealership license by R@+% +-(ec A*

has !a#e pioneering contributions since inception to #ebt !ar"et #evelop!ent in +n#ia +-(ec

A* is also cre#ite# $ith pioneering #ebt !ar"et research in +n#ia +t is one of the largest

portfolio !anagers in the country an# a!ongst A*s% !anaging the largest 4=, un#er

#iscretionary portfolio !anage!ent

+-(ec A*’s lea#ership position an# research expertise have been consistently recognise# by

#o!estic an# international agencies +n recognition of our perfor!ance in the Fixe# +nco!e

!ar"et% $e have receive# the follo$ing a$ar#sN

• K#e/t Do'e/tic #on Ho./eL in +n#ia - '00;% '008% '002% '00' by 4sia ,oney

• K#e/t #on Ho./eL - '00.% '00;% '00/% '008% '002% '001 by Finance 4sia

• K#e/t Do'e/tic #on Ho./eL M '00. by The 4sset ,aga7ine’s annual Triple 4

3ountry 4$ar#s

• Rane =o1.'e 1eaer - by )reen$ich 4ssociates in '010 4sian Fixe#-+nco!e

+nvestors (tu#y Ran"e# 8th in *o!estic 3urrency 4sian 3re#it’ $ith !ar"et share

of 28D% Only *o!estic entity to be ran"e#

• K#e/t De6t Ho./e in IniaL M '01' by E=RO,OE

+3+3+ Aru#ential 4sset ,anage!ent is the thir# largest !utual fun# $ith average asset un#er

!anage!ent of Rs /


31/36

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across various asset classes over !ultiple econo!ic cycles +3+3+ enture is a $holly o$ne#

subsi#iary of +3+3+ @an"

GROUP PHI&O!OPH"

4s +n#ia transfor!s into a "ey player in the global econo!ic arena% !ultiple opportunities for

the financial services sector have e!erge# We% at +3+3+ )roup% see" to partner the countryBs

gro$th an# globali7ation through the #elivery of $orl#-class financial services across all

cross-sections of society

Fro! provi#ing pro:ect an# $or"ing capital finance to the buoyant !anufacturing an#

infrastructure sectors% !eeting the foreign invest!ent an# treasury re&uire!ents of the +n#ian

corporate $ith increasing levels of international engage!ent% servicing the +n#ia lin"e# nee#s

of the gro$ing +n#ian #iaspora% being a catalyst to the consu!er finance story to serving the

financially un#er-serve# seg!ents of the society% our technology e!po$ere# solutions an#

#istribution net$or" have helpe# us touch !illions of lives

%i/ion

To be the lea#ing provi#er of financial services in +n#ia an# a !a:or global ban"

*i//ion

We $ill leverage our people% technology% spee# an# financial capital toN

• be the ban"er of first choice for our custo!ers by #elivering high &uality% $orl#-class

pro#ucts an# services

• expan# the frontiers of our business globally

• play a proactive role in the full realisation of +n#ia’s potential

• !aintain a healthy financial profile an# #iversify our earnings across businesses an#

geographies

• !aintain high stan#ar#s of governance an# ethics

• contribute positively to the various countries an# !ar"ets in $hich $e operate

• create value for our sta"ehol#ers

To8ar/ !./taina61e De=e1o3'ent


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4s +n#iaBs fastest gro$ing financial services conglo!erate% $ith #eep !oorings in the +n#ian

econo!y for over five #eca#es% +3+3+ )roup of co!panies have en#eavore# to contribute to

a##ress the challenges pose# to the co!!unity in !ultiple $ays

4) ICICI Fo.nation for Inc1./i=e Gro8th +3+3+ Foun#ation for +nclusive )ro$th

5+3+3+ Foun#ation6 $as foun#e# by the +3+3+ )roup in early '00< to carry for$ar#

an# buil# upon its legacy of pro!oting inclusive gro$th +3+3+ Foun#ation $or"s

$ithin public syste!s an# specialise# grassroots organisations to support

#evelop!ental $or" in four i#entifie# focus areas We are co!!itte# to investing in

long-ter! efforts to support inclusive gro$th through effective interventions

?) Di/ha Co.n/e11ing *isha Financial 3ounselling services are free to all in areas

li"e financial e#ucation% cre#it counselling an# #ebt !anage!ent

B) Techno1og Finance Gro.3 TF)Bs progra!!es are #esigne# to assist in#ustry

an# institutions to un#erta"e collaborative RP* an# technology #evelop!ent

pro:ects

@) Rea to &ea ca'3aign +3+3+ @an" has ple#ge# to e#ucate 1%00%000 chil#ren

through the BRea# to 9ea# initiative @ecause e#ucation to#ay !eans a better life

to!orro$

:) Go Green; Each one for a 6etter earth +3+3+ @an"% is a responsible corporate

citi7en an# believes that every s!all BgreenB step to#ay $oul# go a long $ay in

buil#ing a greener future an# that each one of us can $or" to$ar#s a better earth

)o )reenB is an organisation $i#e initiative that !oves beyon# !oving ourselves% our

processes an# our custo!ers to cost efficient auto!ate# channels to buil#ing

a$areness an# consciousness of our environ!ent% our nation an# our society


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PER!ONA& #AN,ING

De3o/it/

+3+3+ @an" offers $i#e variety of *eposit Aro#ucts to suit your re&uire!ents 3onvenience

of net$or"e# branchesI 4T,s an# facility of E-channels li"e +nternet an# ,obile @an"ing%(elect any of our #eposit pro#ucts an# provi#e your #etails online an# our representative $ill

contact you

&oan/

+3+3+ @an" offers $i#e variety of 9oans Aro#ucts to suit your re&uire!ents 3ouple# $ith

convenience of net$or"e# branchesI 4T,s an# facility of E-channels li"e +nternet an#

,obile @an"ing% +3+3+ @an" brings ban"ing at your #oorstep (elect any of our loan pro#uct

an# provi#e your #etails online an# our representative $ill contact you for getting loans

Car/

+3+3+ @an" offers a variety of car#s to suit your #ifferent transactional nee#s Our range

inclu#es 3re#it 3ar#s% *ebit 3ar#s an# Arepai# car#s These car#s offer you convenience for

your financial transactions li"e cash $ith#ra$al% shopping an# travel These car#s are $i#ely

accepte# both in +n#ia an# abroa# Rea# on for #etails an# features of each

ea1th *anage'ent

Wealth is the result of a recogni7e# opportunity We un#erstan# this an# $e $or" $ith you to

plan an# !anage your financial opportunities pru#ently ot :ust that% $e also exten# a host

of services so you can re!ain focuse# on i!!e#iate ob:ectives $hile $e ta"e care of all your

$ealth !anage!ent re&uire!ents

Pro.ct/


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Forex #. an !e11

Tra=e1 Car

Tra=e1er/ Che2.e/

e/tern Union


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//

R#I G.ie &ine/

5up#ate# as per ,aster 3ircular #ate# 54;5;?54?6

this is only a brief extract an# for #etails "in#ly refer to above ,aster 3ircular an#

4!en#!ents% if any% thereto in R@+ $ebsite M $$$rbiorgin

4uthori7e# *ealer 3ategory-++ ,oney 3hangers can un#erta"e

• Aurchase M fro! Resi#ents I on- Resi#ents

• (ales to Resi#ents for Arivate Travel an# @usiness Travel

• 4*-3ategory ++ can un#erta"e specifie# on- Tra#e 3urrent 4I3

Transactions in a##ition to the above

For li!its an# con#itions M "in#ly refer to the table un#er GForex 9i!itsG

@ringing in an# ta"ing out of Foreign Exchange

• Foreign Exchange can be brought into +n#ia $ithout li!itQ

• *eclaration in for! 3*F necessary if the 4!ount Y =(* 10%000 5F3 notes Z T3s6

an# I or F3 notes excee# =(* 8000Q

• Ta"ing out Foreign Exchange other than that obtaine# fro! 4*I4,3 prohibite#Q

• on- resi#ents can ta"e out Foreign Exchange up to the a!ount originally brought inQ

Aurchases of Foreign 3urrency fro! Aublic IForeign ationalsN

• Aurchase fro! Resi#ents I on M Resi#entsIforeign nationals F3 otesI 3oinsI T3Bs

sub:ect to sub!ission of 3*F 5$herever applicable6 to be ta"enQ

• Facility to avail +R against +nternational 3re#it 3ar#s by foreign tourists

• Encash!ent 3ertificate to be issue# in all cases of Encash!entsQ

• o li!it for encash!ent is prescribe#% if #eclare# on the 3urrency *eclaration For!

53*F6 on arrival to the custo!s authorities

• o #eclaration in 3*F is re&uire# for Foreign 3urrency $ith aggregate value upto =(

8000 or e&uivalentQ

• o #eclaration in 3*F is re&uire# for F3 Z T3 $ith aggregate value upto =( 10000 or

e&uivalentQ

• For purchase of foreign currency notes an#I or TravellersB 3he&ues fro! custo!ers for

any a!ount less than Rs 80%000I-% or its e&uivalent% copies of i#entification #ocu!ents not

re&uire# Ho$ever% #etails of the i#entification #ocu!ent to be furnishe# by the custo!erI

FORE+) EX3H4)E ,44)E,ET 43T

http://www.rbi.org.in/http://www.rbi.org.in/


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