SUMMER TRAINING PROJECT REPORT ON

“STRATEGIC APPROACH OF KARVY STOCK BROKING LTD AND ITS COMPETITORS

REGARDING DEMAT ACCOUNT AND SHARE TRADING --- A
COMPARATIVE OVERVIEW”

UNDERTAKEN AT
KARVY STOCK BROKING LIMITED

Supervis#r :-
MRRAJESH SHARMA
SUBMITTED BY KARANDEEP SINGH MBA 2&1(-2&1)
ROLL NO:1(21&*+
CERTIFICATE OF THE ORGANISATION

This is to certify that Mr. Karandeep Singh, pursuing MBA at Global Institute of Management,
Amritsar, has worked under my supervision and guidance on his dissertation entitled “Strategic Approach

Trading--- A Comparative Overview” at Karvy Stock Broking Limited, Amritsar from May 15th
2016 to June 25th 2016. To the best of my knowledge this is an original piece of work.
CERTIFICATE OF THE ORGANISATION

This is to certify that Mr. Karandeep Singh, pursuing MBA at Global Institute of Management,
Amritsar, has worked under my supervision and guidance on his dissertation entitled “Strategic Approach

Trading--- A Comparative Overview” at Karvy Stock Broking Limited, Amritsar from May 15th
2016 to June 25th 2016. To the best of my knowledge this is an original piece of work.
During his project he was found to be very sincere, regular and attentive to small details
whatsoever told to him.

I wish him best of luck and success in life.

Dated, Amritsar Sarita Anand

JUNE 25, 2016 Executive
Karvy Stock Broking Ltd.
CERTIFICATE OF THE INSTITUTE

This is to certify that the project report entitled +Strategic Approach of Kar*y Stoc) Bro)ing Ltd.
And It,s Competitors Regarding Demat Account - Share Trading --- A Comparati*e O*er*ie(/ at Kar*y St

su&mitted in partial fulfillment of the re9uirements of MBA program of Glo&al Institute of

Management# Amritsar

profRajesh Sharma
Lecturer
GIM Amritsar

DECLARATION
I hereby declare that the project report titled “Strategic Approach of Karvy Stock Broking Ltd. And It’s Competitor
anywhere earlier.

Karandeep Singh
G.I.M.
ACKNOWLEDGEMENT

Sometimes words fall short to show gratitude, the same happened with me during this project.Theimmense
overwhelmed me during the project.

My sincere gratitude to Miss Sarita Anand (Executive, Karvy) and Prof B.D Sharma
(Dean, GIM, Amritsar), for providing me with an opportunity to work with Karvy Stock Broking Limited.

I am highly indebted to Mr.Kawalpreet Singh (Branch manager., Karvy) and company project guide, who has p
and comments on bringing out this report in the best possible way.

I also thank Mr Rajesh Sharma, faculty guide, GIMAmritsar who has sincerely
supported me with the valuable insights into the completion of this project.

Last but not the least; my heartfelt love for my parents, whose constant support and
blessings helped me throughout this project.
CONTENT

Serial Number Topic Page Number

• 1 11-12

CHAPTER 1

• 2 11-21

Industry Profile

• 3 22-40

Company Profile

4 41-42

Background and inspection of the

company

• 5 42-46

Nature and business carried

• 6 47

Vision,Mission and Quality Policy

• 7 48-51

Products and services

• 52

8 Area of Operation-global national and regional

• 9 53-55

Competitors information

• 10 56
Achievements and Awards

• 11 56

Future growth and Prospectus

• 12 59

CHAPTER 2

• 13 59-65

Literature review

• 14 66

CHAPTER 3

• 15 66-68

Research methodology

• 16 69

Need and objectives of the Study

• 17 70

Data Source

• 18 70

Duration of the study

• 19 70

Sampling procedure

• 20 70

Limitations of the study

71

21 CHAPTER 4
22 Data analysis and @0
intrepretation

2> Questionaire @2-@4

24 Finding of the study @@

21 CHAFTER 1 @8

24 Conclusion @8

2@ Recommendations @9

28 Bi&liography 83

PREFACE

Fri*ate sector is one of the fastest gro(ing sectors in the country. After the li&eralization
the Fri*ate industry still holds *ast opportunities for young and e8perienced professionals.
Among the Private Stock Broking Companies, Karvy Stock Broking Ltd. Is the key player and
has been making efforts to improve efficiency and customer services.

There are many companies in the market which are providing the financial product like
insurance, mutual funds, demat account services, general insurance, portfolio management services, we

Including demat Account services. Karvy Stock Broking Ltd. offers stock broking services,
mutual fund services, insurance, commodity, IPO services, gold coin exchange and foreign

exchange services, Share Registry, Mutual Fund Registry, and PAN Service below the single
roof. Hence, Karvy Stock Broking Ltd. provides many financial products on the single window.

It consists of 7 units namely: -

1. Stock broking services

demat
Mutual Funds

IPO
Commodity

Forex
Gold
EXECUTIVE SUMMARY

This project has been a great experience for me and at the same time it gave me enough scope to impleme
This project as a whole can be divided into two parts: -

The first part gives an insight about demat account and share trading and its various aspects. It is purely ba
have also gained knowledge briefly about mutual fund, general insurance etc.

This entire topic has been covered in a very systematic way. The language has been kept simple so that ev
help of charts and diagram.

The second part consists of data and their analysis, collected through a questionnaire which helps
me to clearly know the terms and condition of different leading stock broking companies and

their business strategies. It covers the topic “Strategic Approach of Karvy Stock Broking Ltd.
And It’s Competitors Regarding Demat Account & Share Trading---A Comparative

Overview”.The data collected has been well organized and presented. Hope the research
findings and conclusions will be of use.
I have really enjoyed during the time period of summer internship because I gained much
better knowledge about the share market trading activities not only a single Karvy Stock Broking
edge gives me enough scope to implement my experience in related companies in the near future. I am able

to know better how to manage the employees work and to take necessary steps to enhance
growth and development of the employees as well as the company’s wellness.
Chapter 1

INDUSTRY PROFILE

History of Stock Broking

The history of stock brokers can be traced back to the origins of the first stock exchange in 1602 at Ams
shares for the Dutch East India Company.

However, the first real stock exchange came up in Philadelphia in the United States
during the late 18th century. Later it was the New York stock exchange which saw a rise in its popularity.

brokers were largely unorganized, but later most of them joined hands to form institutes and
organizations.

Till the 1980's stock broking services were used only by the wealthy class who could
afford them. Later with the advent of the Internet, stock broking became very easy. Thus, the

price tag on stock brokers lowered considerably and their services became available even to the
common man.

The stock broking duties are now mostly taken up by major organizations with the
smaller companies being absorbed by them. In India, too with increasing globalization the major

corporations are penetrating deeper into the society.

History of Stock Exchanges in India:

Stock markets refer to a market place where investors can buy and sell stocks. The price at which each buy
demand and supply for a particular stock).

Let us take an example for a better understanding of how market forces determine stock prices. ABC Co. L
movement in its stock price. More and more people would want to buy this stock (i.e. high

demand) and very few people will want to sell this stock at current market price (i.e. less supply).
Therefore, buyers will have to bid a higher price for this stock to match the ask price from the

seller which will increase the stock price of ABC Co. Ltd. On the contrary, if there are more
sellers than buyers (i.e. high supply and low demand) for the stock of ABC Co. Ltd. in the
market, its price will fall down.

In earlier times, buyers and sellers used to assemble at stock e xchanges to make a
transaction but now with the dawn of IT, most of the operations are done electronically and the
stock markets have become almost paperless. Now investors don’t have to gather at the
Exchanges, and can trade freely from their home or office over the phone or through Internet.

History of the Indian Stock Market - The Origin

One of the oldest stock markets in Asia, the Indian Stock Markets has a 200 years old history.

Year 1800 : East India Company was the dominant institution and by end of the
century, business in its loan securities gained full momentum.

Year 1830 : Business on corporate stocks and shares in Bank and Cotton presses
started in Bombay. Trading list by the end of 1839 got broader

Year 1840 : Recognition from banks and merchants to about half a dozen brokers

Year 1850 : Rapid development of commercial enterprise saw brokerage business

attracting more people into the business

Year 1860 : The number of brokers increased to 60

Year 1860-61 : The American Civil War broke out which caused a stoppage of cotton
supply from United States of America; marking the beginning of the
"Share Mania" in India

Year 1862-63 : The number of brokers increased to about 200 to 250

Year 1865 : A disastrous slump began at the end of the American Civil War (as an
example, Bank of Bombay Share which had touched Rs. 2850 could only
be sold at Rs. 87)

Pre-Independence Scenario - Establishment of Different Stock Exchanges

Year 1874 : With the rapidly developing share trading business, brokers used to
gather at astreet (now well known as "dalal Street") for the purpose of
transacting business.

Year 1875 : "The Native Share and Stock Brokers' Association" (also known as
"The Bombay Stock Exchange") was established in Bombay

Year 1880 : development of cotton mills industry and set up of many others

Year 1894 : Establishment of "The Ahmedabad Share and Stock Brokers'

Association"

Year 1900 : Sharp increase in share prices of jute industries in 1870's was followed
by a boom in tea stocks and coal
"The Calcutta Stock Exchange Association" was formed.
Year 1908 :

Year 1920 : Madras witnessed boom and business at "The Madras Stock Exchange"
was transacted with 100 brokers.

Year 1923 : When recession followed, number of brokers came down to 3 and the
Exchange was closed down
Year 1934 : Establishment of the Lahore Stock Exchange.

Year 1936 : Merger of the Lahore Stock Exchange with the Punjab Stock Exchange.

Year 1937 : Re-organization and set up of the Madras Stock Exchange Limited (Pvt.)
Limited led by improvement in stock market activities in South India with
establishment of new textile mills and plantation companies.

Year 1940 : Uttar Pradesh Stock Exchange Limited and Nagpur Stock Exchange
Limited was established

Year 1944 : Establishment of "The Hyderabad Stock Exchange Limited"

Year 1947 : "delhi Stock and Share Brokers' Association Limited" and "The delhi
Stocks and Shares Exchange Limited" were established and later on
merged into "The delhi Stock Exchange Association Limited"

Post Independence Scenario

The depression witnessed after the Independence led to closure of a lot of exchanges in
the country. Lahore Stock Exchange was closed down after the partition of India, and later on
merged with the delhi Stock Exchange. Bangalore Stock Exchange Limited was registered in
1957 and got recognition only by 1963. Most of the other Exchanges were in a miserable state

till 1957 when they applied for recognition under Securities Contracts (Regulations) Act, 1956.
The Exchanges that were recognized under the Act were:

• Bombay
• Calcutta
• Madras
• Ahmedabad
• delhi
Hyderabad
•
• Bangalore
Indore
•
Many more stock exchanges were established during 1980's, namely:

• Cochin Stock Exchange (1980)

Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982) Pune Stock Excha
•
•
• Ludhiana Stock Exchange Association Limited (1983)
Gauhati Stock Exchange Limited (1984)
•
• Kanara Stock Exchange Limited (at Mangalore, 1985)
Magadh Stock Exchange Association (at Patna, 1986)
•
• Jaipur Stock Exchange Limited (1989)
Bhubaneswar Stock Exchange Association Limited (1989)
•
• Saurashtra Kutch Stock Exchange Limited (at Rajkot, 1989)
Vadodara Stock Exchange Limited (at Baroda, 1990)
•
• Coimbatore Stock Exchange
• Meerut Stock Exchange

At present, there are twenty one recognized stock exchanges in India which does not
include the Over The Counter Exchange of India Limited (OTCEI) and the National Stock Exchange of In
Government policies during 1980's also played a vital role in the development of the Indian Stock Marke
well as their capital, which is visible from the following table:

Indian Stock Exchange Growth

1946 1961 1971 1975 1980 1985

7 7 8 8 9 14
1125 1203 1599 1552 2265 4344
isted Cos. 1506 2111 2838 3230 3697 6174
r. Rs.) 270 753 1812 2614 3973 9723 3

Trading Pattern of the Indian Stock Market

Indian Stock Exchanges allow trading of securities of only those public limited companies that
are listed on the Exchange(s). They are divided into two categories:
Types of Transactions Transaction on Indian Stock Exchange
The flo(chart &elo( descri&es the types of transactions that can &e carried out on the
Indian stoc) e8changesH

Indian stock exchange allows a member broker to perform following activities:

• Act as an agent#
Buy and sell securities for his clients and charge commission for the same#
•
• Act as a trader or dealer as a principal,
• Buy and sell securities on his own account and risk.

Over The Counter Exchange of India (OTCEI)

ock Exchanges in India followed a conventional style where people used to gather at the Exchange and bids and offers we
anism in the Indian stock markets used to create many

functional inefficiencies. Lack of liquidity and transparency, long settlement periods and benami
transactions are a few examples that adversely affected investors. In order to overcome these

inefficiencies, OTCEI was incorporated in 1990 under the Companies Act 1956. OTCEI is the
first screen based nationwide stock exchange in India created by Unit Trust of India, Industrial

Credit and Investment Corporation of India, Industrial development Bank of India, SBI Capital
Markets, Industrial Finance Corporation of India, General Insurance Corporation and its

subsidiaries and CanBank Financial Services.

Securities Traded on the OTCEI

Initiated Debentures

• An equity holding a minimum of 1 Lakh debentures of a particular scrip can offer them for
trading on the OTC
Permitted Securities

• Certain Securities (Shares and debentures) listed on other Exchanges

• Units of Mutual Fund can be Traded
Listed Securities
• Securities of the companies listed on the OTC
• Can &e &ought and sold at any OTC Center across India
• Should not &e listed any(here else

Advantages of OTCEI

• Greater li9uidity and lesser ris) of intermediary charges due to (idely spread trading
mechanism across India

• The screen-&ased scripless trading ensures transparency and accuracy of prices

Faster settlement and transfer process as compared to other e8changes
•

• Shorter allotment procedure :in case of a ne( issue; than other e8changes

National Stock Exchange

In order to lift the Indian stock market trading system on par with the international
standards. On the basis of the recommendations of high powered Pherwani Committee, the National Stoc

Industrial Credit and Investment Corporation of India, Industrial Finance Corporation of India,
all Insurance Corporations, selected commercial banks and others.

NSE provides exposure to investors in two types of markets, namely Wholesale debt market
Capital market
•
•

Wholesale Debt Market- Similar

to money market operations, debt market operations involve institutional inves
instruments like treasury bills, government securities, commercial papers etc.

Trading at NSE

• Fully automated screen-based trading mechanism

• Strictly follows the principle of an order-driven market

Trading members are linked through a communication network
•

• This network allows them to execute trade from their offices

The prices at which the buyer and seller are willing to transact will appear on the screen
•

• When the prices match the transaction will be completed

• A confirmation slip will be printed at the office of the trading member

Advantages of trading at NSE

Integrated network for trading in stock market of India

Fully automated screen based system that provides higher degree of transparency

• Investors can transact from any part of the country at uniform prices

• Greater functional efficiency supported by totally computerized network

Bombay Stock Exchange

e oldest stock exchange in Asia with a rich heritage, now spanning three centuries in its 133 years of existence. What is no
are & Stock Brokers' Association" in 1875.

BSE is the first stock exchange in the country which obtained permanent recognition (in
1956) from the Government of India under the Securities Contracts (Regulation) Act 1956. BSE's pivotal

recognized. It migrated from the open outcry system to an online screen-based order driven
trading system in 1995. Earlier an Association Of Persons (AOP), BSE is now a corporatised and

demutualised entity incorporated under the provisions of the Companies Act, 1956, pursuant to
the BSE (Corporatisation and Demutualisation) Scheme, 2005 notified by the Securities and

Exchange Board of India (SEBI). With demutualisation, BSE has two of world's best exchanges,
Deutsche Börse and Singapore Exchange, as its strategic partners.

Over the past 133 years, BSE has facilitated the growth of the Indian corporate sector by providing it with
which has not sourced BSE's services in raising resources from the capital market.

Today, BSE is the world's number 1 exchange in terms of the number of listed companies
and the world's 5th in transaction numbers. The market capitalization as on December 31, 2007

stood at USD 1.79 trillion . An investor can choose from more than 4,700 listed companies,
which for easy reference, are classified into A, B, S, T and z groups.

The BSE Index, SENSEX, is India's first stock market index that enjoys an iconic stature , and is tracked w
SENSEX is constructed on a 'free-float' methodology, and is sensitive to market sentiments and
market realities. Apart from the SENSEX, BSE offers 21 indices, including 12 sectoral indices.
BSE has entered into an index cooperation agreement with deutsche Börse. This agreement has
made SENSEX and other BSE indices available to investors in Europe and America. Moreover,
Barclays Global Investors (BGI), the global leader in ETFs through its iShares® brand, has

created the 'iShares® BSE SENSEX India Tracker' which tracks the SENSEX. The ETF
enables investors in Hong Kong to take an exposure to the Indian equity market.

The first Exchange Traded Fund (ETF) on SENSEX, called "SPIcE" is listed on BSE. It
brings to the investors a trading tool that can be easily used for the purposes of investment,

trading, hedging and arbitrage. SPICE allows small investors to take a long-term view of the
market.

BSE provides an efficient and transparent market for trading in equity, debt instruments
and derivatives. It has a nation-wide reach with a presence in more than 359 cities and towns of

India. BSE has always been at par with the international standards. The systems and processes
are designed to safeguard market integrity and enhance transparency in operations. BSE is the

first exchange in India and the second in the world to obtain an ISO 9001:2000 certification. It is
also the first exchange in the country and second in the world to receive Information Security

Management System Standard BS 7799-2-2002 certification for its BSE On-line Trading System
(BOLT).

BSE continues to innovate. In recent times, it has become the first national level stock
exchange to launch its website in Gujarati and Hindi to reach out to a larger number of investors.

It has successfully launched a reporting platform for corporate bonds in India christened the
ICdM or Indian Corporate debt Market and a unique ticker-cum-screen aptly named 'BSE

Broadcast' which enables information dissemination to the common man on the street.
In 2006, BSE launched the directors database and ICERS (Indian Corporate Electronic

Reporting System) to facilitate information flow and increase transparency in the Indian capital
market. While the directors database provides a single-point access to information on the boards

of directors of listed companies, the ICERS facilitates the corporates in sharing with BSE their
corporate announcements
Sensex & Nifty

The Sensex is an "index". What is an index? An index is basically an indicator. It gives

you a general idea about whether most of the stocks have gone up or most of the stocks have gone down

The Sensex is an indicator of all the major companies of the BSE.

The Nifty is an indicator of all the major companies of the NSE.

If the Sensex goes up, it means that the prices of the stocks of most of the major
companies on the BSE have gone up. If the Sensex goes down, this tells you that the stock price of most o

Just like the Sensex represents the top stocks of the BSE, the Nifty represents the top
stocks of the NSE.

Just in case you are confused, the BSE, is the Bombay Stock Exchange and the NSE is
the National Stock Exchange. The BSE is situated at Bombay and the NSE is situated at Delhi. These are

Calcutta Stock Exchange etc. but they are not as popular as the BSE and the NSE. Most of the
stock trading in the country is done though the BSE & the NSE.
Mar)et Watch - BSE - BSE 233 o*er a Fortnight

Mar)et Watch - NSE - S-F CNX Nifty o*er a Fortnight

COMPANY PROFILE

Introduction:
If we look for examples to prove this quote
“Success is a journey, not a destination.”
then we can find many but there is none like that of karvy. Back in the year 1981, five people created his

financial service provider of India.

Success sutras of Karvy:

The success story of karvy is driven by 8 success sutras adopted by it namely trust, integrity, dedication, commit
innovation, empathy and humility. These are the values that bind success with karvy.

Vision of Karvy:

To achieve & sustain market leadership, Karvy shall aim for complete customer
satisfaction, by combining its human and technological resources, to provide world class quality
services. In the process Karvy shall strive to meet and exceed customer's satisfaction and set

industry standards.

Mission statement:

“Our mission is to be a leading and preferred service provider to our customers, and we
aim to achieve this leadership position by building an innovative, enterprising , and

technology driven organization which will set the highest standards of service and business
ethics.”
The Success Ladder:

Company overview:
Karvy was established as karvy and company by five chartered accountants during the

year 1979-80, and then its work was confined to audit and taxation only. Later on it diversified
into financial and accounting services during the year 1981-82 with a capital of rs.150000. it achieved its f

during the year 1985-86 when it forayed into capital market as registrar.

Evolution of KARVY:

It is well said that success is a journey not a destination and we can see it being proved by
karvy. Under this section we will see that how this “karvy and company” of 1980 became “karvy” of 2008

year 1987-88. The turning point came in the year 1989 when it decided to enter into one of the
not only emerging rather potential field too i.e; stock broking. It added the feather of stock

broking into its cap. At the same time it became the member of Hyderabad Stock Exchange
through associate firm karvy securities ltd and then karvy never looked back…it went on

adding services one after another, it entered into retail stock broking in the year 1990. Karvy
investor service centers were set up in the year 1992. Karvy which already enjoyed a wide

network through its investor service centers, entered into financial product distribution services
in the year 1993. One year more and karvy was now dealing into mutual fund services too in the

year 1994 but it didn’t stopped there, it stepped into corporate finance and investment banking in
the year 1995.
Karvy’s strategy has always been being the first entrant in the market. Karvy again hit the
limelight by becoming the first registrar in the country to be awarded ISO 9002 in the year 1997. Then it s

own BPO units and at a gap of just 1 year it took the path of e-Business through its website
. Then it entered into insurance services in the year 2001 with the launch of its
retail arm “karvy- the finapolis: your personal finance advisor”. Then in the year 2002 it launched its

maintain their portfolio and provides them with other financial services. In the year 2003, it
commenced secondary debt and WDM trading.

It was a decade which saw many Indian companies going global…..so why the largest
financial service provider of India should lag behind? Hence, karvy launched “karvy global
services limited” after entering into a joint venture with Computershare, Australia in the year
2004.the year 2004 also saw karvy entering into commodities marketing through karvy
comtrade.

Year 2005 saw karvy establishing a separate branch for its insurance services under
the head “ karvy insurance broking ltd” and in the same year, after being impressed with the
rapid growth of karvy stock broking limited, PCG group of Hong Kong acquired 25% stake at
KSBL. In the year 2006, karvy entered into one of the hottest sector of present time i.e real
estate through Karvy realty& services (India) ltd. hence , we can see now karvy being
established as the lagest financial service provider of the country.
Now Karvy group consists of 11 highly renowned entities which are as follow:

The first securities registry to receive ISO 9002 certification in India. Registered with
SEBI as Category I Registrar, is Number 1 Registrar in the Country. The award of being ‘Most
Admired’ Registrar is one among many of the acknowledgements we received for our customer
friendly and competent services.

Karvy stock broking ltd. Consists of five units namely stock broking servics, depository
participant, advisory services, distribution of financial products, advisory services and private
client goups.

It is registered with SEBI as a category 1 merchant banker. Its clientele includesinclude

leading corporate, State Governments, foreign institutional investors, public and private sector
companies and banks, in Indian and global markets.
Karvy insurance broking ltd is also a part of karvy stock broking ltd. At Karvy Insurance
Broking Limited both life and non-life insurance products are provided to retail individuals,
high net-worth clients and corporates.

The company provides investment, advisory and brokerage services in Indian

Commodities Markets. And most importantly, it offer a wide reach through our branch
network of over 225 branches located across 180 cities.

Karvy Global is a leading business and knowledge process outsourcing Services

Company offering creative business solutions to clients globally. It operates in banking and
financial services, inurance, healthcare and pharmaceuticals, media , telecom and technology.
It has its sales and business development office in New York, USA and the offshore global
delivery center in Hyderabad, India.

Karvy Realty (India) Limited is engaged in the business of real estate and property services
offering:
• Buying/ selling/ renting of properties

• Identifying valuable investments opportunities in the real estate sector

• Facilitating financial support for real estate and investments in properties

• Real estate portfolio advisory services

Karvy Computershare Private Limited is a joint venture between Computershare,

Australia and Karvy Consultants Limited, India in the registry management services industry.
Computershare, Australia is the world’s largest and only global share registry providing financial
market services and technology to the global securities industry. Karvy Corporate and Mutual
Fund Share Registry and Investor Services business, India's No. 1 Registrar and Transfer
Agent and rated as India's "Most Admired Registrar" for its overall excellence in volume
management, quality processes and technology driven services.

KdMSL is emerging as a leading service provider in the areas of E-governance

processing, insurance back office processing, record keeping, back office for BFSI clientele
and is in pursuit to establish credentials in the areas of Telecom processing, data management
requirements of large corporate.
KdMSL is striving to achieve leadership position by tapping the Indian retail
sector boom, through a combination of our extensive branch network and proprietary IT
backbone. Needless to say, KdMSL is run as an independent outfit with seasoned
professionals on board, who have decades of expertise in the industry.
KdMSL is a fully owned subsidiary of Karvy Stock Broking Limited (KSBL),
incorporated in April 2008 and is head quartered at Hyderabad.
Karvy Now presents Karvy Fortune, a correlate opportunity from India’s foremost
financial services provider, karvy. It offers complete Karvy’s spectrum of financial products.
Karvy fortune gives the opportunity to associate with “Karvy Family” as Franchisee, Remisser,
E – Franchisee or as an Independent Financial Advisors.

In its ambition to emerge as a complete financial advisor, KARVY has recently launched
its personal financial planning wing, KARVY Financial Planning. It proposes to cater all
advice to its customer pertaining to personal finance.

With India emerging as a strong market, the investments avenues have also increased,
to advice our customers the right avenue according to their suitability.

Our vision is "To cater to the unique needs and requirements of the mass affluent by
providing complete financial solutions and thereby enabling them to transform their dreams
into reality."

Organization structure of karvy:

Talking about the organization structure of karvy, we have the board of directors as the
supreme governing body , the chairman being Mr. C parthasarthy, mr. m yugandhar as
the managing director, mr m s ramakrishna andmr. Prasad v. potluri as directors.

The board of diretors head the karvy group, karvy computershares limited, karvy
investors services ltd., karvy comtrade, karvy stock broking ltd., and karvy global services ltd.

Karvy group being the flagship company looks after the functional departments such
as corporate affairs, group human resources, finance & accounting, training &
development, technology services and corporate quality.

Karvy computershare private limited facilitates mutual fund services, share registry
and issue registry whereas merchant banking is looked after by karvy investor services ltd.
Karvy stock broking ltd heads its another branch too ie. Karvy insurance broking ltd. The
services offered by KSBL are: stock broking, depository, research, distribution, personal client
group and institutional desk. And finally the BPO services are managed by karvy global
services ltd. Summarizing it in a diagram, it can be presented as:
Spectrum of services offered by Karvy:

Karvy being the top registrar and transfer agent, functions as registrar in most of the
issues in the country. Talking about the mutual fund services offered by Karvy, we can get the
products of 33 AMCs over here. it deals in both closed ended funds as well as open ended too.
Now one must be thinking why to get the mutual funds from Karvy instead of getting it
directly from AMCs???we have great reasons for it: the first one being ; if we avail the
services of Karvy then we can get the information about all the AMCs and their products at a
single place along with expert recommendations whereas at an AMC we can get information
about the products of
that specific AMC only. And the second being wide network of Karvy….nowadays we can
find Karvy offices at remote areas too.

Along with these, Karvy is very well handling the role of depository participant. Being
registered with both the depositories i.e.; NSDL (national securities depository ltd) and CDSL
(central depository services ltd), Karvy can have access to both. Its wide network also
facilitates it in distribution of retail financial products.

Karvy believes in being updated always. So it is always ready to use latest

technologies so that its clients always be in touch with the latest happenings along with
Karvy. It offers e- business through internet through its website: www.karvy.com . Other than
it, it also provides its various services through SMSes.

Karvy’s services are not limited to its investors only rather its offerings are for its
corporate clients and distributors too. it is very well aware of the fact that in this era of neck
to neck competition, we cant ignore any of the aspects of our business….so there’s a offering
for everybody…everyone’s welcome at Karvy.

Why should investors choose for Karvy?

Excellence is next to nothing….and here at Karvy everybody tries their best to offer
excellent services to its clientele through its offerings maintaining the Karvy culture which
includes:

1. Controlled and low cost service culture: Karvy is there to serve its client at the
minimum possible cost. it controls cost by its various cost- cutting techniques and
minimization of avoidable costs.
2. Large volume processing capability: being the largest financial service provider in
the country, it has the unique distinction of operating its activities on a large scale which
benefits all the parties cordially.

3. Adherence to strict time schedule: Karvy knows that time is money and tries it best
to finish the task within the stipulated time schedule.

4. Expertise in coordinating multi-location responses: Karvy has got a wide network

and hence one can find its branches at most of the places in India. Thus it enjoys its
presence everywhere and coordinates among itself in solving the queries and in
responding to any situation.

5. Expertise in managing independent entities such as banks, post-office etc.: the

work culture of Karvy and the ethics followed inside Karvy makes its workforce compatible
with everybody, so the Karvy people establishes good coordination with independent entities
too.

6. Pooling of group resources: Karvy group consists of eight subsidiaries, so it can

easily pool up its resources for accomplishment of its goals, whenever needed. The groups can
help each other whenever there are peaks and lows, and even in the case when they have huge
targets just as we saw few years back, Tata group pooling its resources to acquire Corus.

How Karvy achieved it?

The core competency of Karvy lies in the following points due to which it enjoys a
competitive edge over its competitors. The following culture adopted by karvy makes it all
time favorite among its clientele:
1. Professionally managed by qualified and trained manpower.
2. Uniquely structured in-house software and hardware department
3. Query handling within 48 hrs.
4. Strong secretarial, accounting and audit systems.
5. Unique work culture of working 7 days a week in 3 shifts.
6. Unmatched network spreading all over India.

How Achievements sounds synonymous to karvy:

The landmarks achieved by karvy very well define its success story. In the
previous pages, we learnt how a company started by five chartered accountants, named as
karvy and company turned into today’s karvy group, the largest financial intermediary of India.
But success didn’t came to karvy at a flow, the hard work and dedication of its workforce
made it what it is today…gradually it achieved the following landmarks and now it has
became what we call the karvy group, now it is:
1. Largest independent distributor for financial products.
2. amongst the top 5 stock broker.
3. among the top 3 depository participants.
4. Largest network of branches & business associates.
5. ISO 9002 certified operations by DNV.
6. amongst top 10 investment bankers.
7. Adjudged as one of the top 50 IT users in India by MIS south Asia.
8. full- fledged IT driven operation.
9. India’s no.1 registrar & securities transfer agent.

Clientele of Karvy:

Karvy’s culture has helped Karvy in achieving such a distinct position in the market where it
can boast of its huge client base. Be it a retail investor investing Rs. 500 in a SIP in Reliance
mutual fund or be it the largest corporate house of the country: Reliance industries-
everybody is heading towards Karvy for their wealth maximization, lets have a look at the
clientele of Karvy : According to the data published in year 2007, Karvy stock broking ltd.
Operates through more than 12000 terminals, more than 290000 accounts are maintained and
commands over 3.14% market share of NSE. The distribution services have access to more
than Rs. 40 billion Assets under Management. Karvy being a depository participant with both
NSDL and CDSL, manages
more than 700000 accounts from more than 380 locations. Talking about the registry services,
it manages over 750 public/ right issues. At the same time, it is managing over 16 million
portfolios as registrar.
If we took a look at some of the top corporate houses availing the services of Karvy
then we have: Reliance, IOC, IdBI,LIC, Hindustan Unilever, Principal Mutual Fund,
duetsche Mutual Fund, Yogokawa, Marico Industries, Patni Computers, Morgan Stanley,
Glenmark, CRISIL, 3M, Kotak Mahindra Bank, Bharti Televenture, Infosys Technologies, Wipro,
Infotech, IPCL,TATA consultancy services, UTI mutual fund etc. Thus in total karvy
serves over 16 million investors and 300 corporate.
Now, as the project was carried on in Burdwan, so there is a special reference to
working of Karvy at eastern zone and Stock Broking in particular.

KARVY at eastern zone:

Karvy stock Broking Ltd was started 11 yrs ago i.e.; during the year 1996 at Jatin das
road which was later on established as the regional head office. Presently Mr. Alok Chaturvedi is
heading the eastern zone. Talking about the zonal offices, Karvy has zonal offices at Kolkata,
south Bengal, north Bengal, North east, Jharkhand, Bihar, Orissa and Chhattisgarh. Each
zonal office has got its own zonal heads. Karvy is a member of three stock exchanges of
India: National Stock Exchange (NSE), Bombay Stock Exchange (BSE) and Hyderabad
Stock Exchange (HSE).

Structure according to the Products offered by Karvy:

Stock Broking Services
It is an undisputed fact that the stock market is unpredictable and yet enjoys a high
success rate as a wealth management and wealth accumulation option. The difference
between unpredictability and a safety anchor in the market is provided by in-depth knowledge
of market functioning and changing trends, planning with foresight and choosing one’s
options with care. This is what we provide in our Stock Broking services.
We offer services that are beyond just a medium for buying and selling stocks and shares.
Instead we provide services which are multi dimensional and multi-focused in their scope. There
are several advantages in utilizing our Stock Broking services, which are the reasons why it is
one of the best in the country.
We offer trading on a vast platform ; National Stock Exchange and Bombay Stock
Exchange. More importantly, we make trading safe to the maximum possible extent, by
accounting for several risk factors and planning accordingly. We are assisted in this task by
our in-depth research, constant feedback and sound advisory facilities. Our highly skilled
research team, comprising of technical analysts as well as fundamental specialists, secure
result-oriented information on market trends, market analysis and market predictions. This crucial
information is given as a constant feedback to our customers, through daily reports delivered
thrice daily ; The Pre-session Report, where market scenario for the day is predicted, The
Mid-session Report, timed to arrive during lunch break , where the market forecast for the rest
of the day is given and The Post-session Report, the final report for the day, where the market
and the report itself is reviewed. To add to this repository of information, we publish a
monthly magazine “Karvy ; The Finapolis”, which analyzes the latest stock market
trends and takes a close look at the various investment options, and products available in the
market, while a weekly report, called “ Karvy Bazaar Baatein”, keeps you more
informed on the immediate trends in the stock market. In addition, our specific industry
reports give comprehensive information on various industries. Besides this, we also offer
special portfolio analysis packages that provide daily technical advice on scrips for
successful portfolio management and provide customized advisory services to help you make
the right financial moves that are specifically suited to your portfolio.
Our Stock Broking services are widely networked across India, with the number of our
trading terminals providing retail stock broking facilities. Our services have increasingly offered
customer oriented convenience, which we provide to a spectrum of investors, high-networth
or otherwise, with equal dedication and competence.
But true to our spirit, this success is not our final destination, but just a platform to launch
further enhanced quality services to provide you the latest in convenient, customer-friendly stock
management.
Over the years we have ensured that the trust of our customers is our biggest returns.
Factors such as our success in the Electronic custody business has helped build on our
tradition of trust even more. Consequentially our retail client base expanded very fast.
To empower the investor further we have made serious efforts to ensure that our research
calls are disseminated systematically to all our stock broking clients through various delivery
channels like email, chat, SMS, phone calls etc.
Our foray into commodities broking has been path breaking and we are in the process
of converting existing traders in commodities into the more organized mainstream of trading
in commodity futures, both as a trading and risk hedging
mechanism.

In the future, our focus will be on the emerging businesses and to meet this objective,
we have enhanced our manpower and revitalized our knowledge base with enhances focus on
Futures and Options as well as the commodities business.

Depository Participants

The onset of the technology revolution in financial services Industry saw the
emergence of Karvy as an electronic custodian registered with National Securities
Depository Ltd (NSDL) and Central Securities Depository Ltd (CSDL) in 1998. Karvy set
standards enabling further comfort to the investor by promoting paperless trading across the
country and emerged as the top 3 Depository Participants in the country in terms of customer
serviced.
Offering a wide trading platform with a dual membership at both NSdL and CdSL, we
are a powerful medium for trading and settlement of dematerialized shares. We have
established live dPMs, Internet access to accounts and an easier transaction process in order to
offer more
con*enience to indi*idual and corporate in*estors. A team of professional and the latest
technological e8pertise allocated e8clusi*ely to our demat di*ision including technological
enhancements li)e SFEED-e# ma)e our response time 9uic) and our deli*ery impecca&le. A
(ide national net(or) ma)es our efficiencies accessi&le to all.

SWOT ANALYSIS
• SRENGTH:-

• Co-operative and experienced branch Managers

• Good database
• Low pricing
• Karvy Brand

• WEAKNESS:-

• Inexperienced staff
• Low awareness due to lack of advertisement
• Lack of loyal clientage
• developing product

• OPPORTUNITY:-
• Untapped Market
• Increased spending power
• Changing mindset of customers
• Unpredictable sensex
• THREATS:-

• Reach
• Stiff competition from existing players in the market
• Better products

What does Karvy Stock Broking Ltd offers?

Personalised service

Companies believes in providingpersonalized service and individual attention to each client to

ensure that we understand their goals and help them to achieve it.

Professional advice

Companies provide expert advice on equity and debt portfolios with an objective to provide
consistent long-term return while taking calculated market risks. Companies approach helps
client build a proper mix of products, and not concentrate on just one individual products. Hence,
serving long-term objectives in the best way.

Long-term relationship

Company believes that long-term vision is the only means to steady wealth creation. However to
achieve this one also need to take advantage of short term market opportunities while not
losing sight of long term objectives. Hence it partners all its clients in realizing their long-term
vision.
Access to research report

Company provides the clients with access to the expert opinion of economists and analysts.

Transparency and confidentiality

Companies clients receive regular portfolio statements from relationship managers via e-mail.

KARVY PRODUCT

How are financial instruments bought and sold?

Till the 1990s, buying or selling of financial instruments used to happen in a physical
sense (out cry system). Not only there was a need to verbally express every transaction, but
there were also various documents that had to be exchanged between the user (may be a buyer
or a seller) and the service provider each time a transaction took place.

A user also had to complete formalities (like attaching transfer stamps on the security,
putting multiple signatures, writing the postal address etc.) each time there was a transfer
of ownership. The user then would inform the issuer of the security (mostly by post with the
original documents, stamped & signed) if he wanted to register as the owner of the said
security.

In the 1990s, NSE introduced screen-based trading, where the buying and selling
would take place on the exchange’s electronic system. Subsequently, the BSE too introduced
screen- based trading. Over the next few years, only dematerialized shares were allowed to be
traded on the stock exchanges, doing away with maintaining reams of paper.

What is e-broking or online trading?

E-broking is the process of buying or selling securities through the Internet. To trade
online, you need to have access to a personal computer (with a modem), a telephone and an
Internet account with any one of the Internet service providers. Karvyonline as a brokerage
house offers users an interface on the Internet (what you see when you log on to our site) and
also offers the required guidance for them to place buy or sell orders over the Internet. In
India, the NSE and BSE allow brokerage houses like Karvy stock broking ltd. that are
registered with the Securities Exchange Board of India (SEBI) to offer e-broking facilities to
their users.

What is a contract note?

It is a statement of confirmation of trade(s) done on a particular day for and on behalf of a

client. A contract note is issued in the prescribed format and manner, establishing a legally
enforceable relationship between the member and client in respect to the trades stated in that
contract note. Contract notes are made in duplicate, where the member and client both keep
one copy each. Contract notes should be preserved carefully for future records and even for
tax purposes.

If there are disputes in the case of orders placed over phone, how can they be resolved?
Orders over the telephone can be placed only through designated telephone numbers. We have a
*oice recording system to record all orders placed o*er the telephone. We (ill as) for customer
ID details &efore processing the order. Still# if a dispute arises# the *oice recording (ould &e the
final proof for settling the dispute.

Trading Package of Karvy Online

I-Zone
One-Stop Registration for In*estment zone

Karvy online: A single account

• E9uities - Deri*ates :NSE U BSE;
• Mutual FundsH:All major AMCs;
• IFOs - DF ser*ices :NSDLUCDSL;
• Commodities :NCDEX - MCX;
Facilities:
• Live market news
• Quality research live on the trading screen
• Top analysts providing inputs on strategies and recommendations
• Alert facility for tracking
• Seamless integration between bank, broking, mf and dP Accounts
• Comprehensive net worth statement
• Live tracking of investments
• Corporate news a click away
• Streaming quotes and news from the exchange on your desktop
• High quality support team to enable you

Links to existing Karvy relations

Offline Broking ID – The same UCC would be allotted for the I-zone account.

Offline Mutual Fund Code – The existing Offline Folios if held singly in the name of Sole /
First Applicant would be available for display in the online Login of the client. The portfolio
would be updated on a daily basis. However, online transactions can be executed in such
offline folios only after conversion of such offline folios to online folios. For conversion the client
needs to provide one letter to each AMC in whose scheme he/she has invested mentioning the
offline Folio number.

Demat ID –If the client already holds a demat account with Karvy where the holder(s) in demat
is same as applicants in the I-zone form and in the same sequence, the existing demat
account can be connected to the I-zone account. All IPO bids, in such case, would be placed
in the name of joint holders as in demat account.
With the changing market scenario Karvy change the Karvy Online product from I-zone to

I-zone

Facilities

• Free online stock-broking and attractive margin funding options

• Life time free demat account

• Free online commodities broking account

• Free Mutual Fund transactions to an unlimited extent ,including unlimited SIP

transactions

• Application in IPOs with attractive loan options for applications

• Loans against securities

• Daily equity market research reports and calls through SMS

• Access to research reports on Mutual Fund, IPO sand Insurance

• Regular portfolio statement for better planned future investments

• Free financial advise on portfolio allocation in various asset classes

• Free subscription of ‘KARVYF FinaPolis’ magazine

The Value You Get

If these are not part of I-Zone + Then their value will be

ons in a year (assumedto be valued at Rs. 1,00,000) Normal Annual Maintenance charges
Rs. 1,500/-
for aRs.
Equity
500/-Broking +
dematAccount
ommodities Broking Account Market Price for an elementary health checkup Subscription to ‘KARVY FinaPolis’ magazi
Total Value Payable Upfront
Rs. 200/-
Rs. 1,500/- Rs. 300/- Rs. 4,000/-

The Value You Pay For

Particulars Value
You initially pay a Margin deposit of Annual Maintenance Charges (AMC) for I-zone Rs.
+ 5,000/- Rs. 2,400/- Rs. 2,600/-
The remaining money you can use as margin money for your

trades is

BACKGROUND ANDINSPECTIONOF KARVY

Company Background - Karvy Stock Broking Limited

Industry Name Finance - Banks - Public Sector
House Name N.A.
Collaborative Country Name N.A.
Joint Sector Name N.A.
Year Of Incorporation 1979
Year Of Commercial Production 1983

Regd.

Office
Karvy House, No. 46, 8-2-609/K
Address Avenue 4, Street No. 1 Banjara Hills
District Hyderabad
State Telangana 500034
Pin Code Tel. No. Fax No.
+91 40 67162222
Email :
+91 40 23001153
Internet :

Auditors Company Status

Amit Ray & Co. N.A.

Registrars
Name datamatics Financial Services Ltd.
Address Plot No. B-5, MIdC, Part B Cross Lane, Andheri (E), Mumbai - 400093, Maharashtra

Tel. No. : 022-66712151 - 160 Fax No. : 022-66712230

Email : Internet :

NATURE AND BUSINESS CARRIED

dematerialized securities (‘demat’ in short) are securities that are not on paper and a
certificate to that effect do not exist. They exist in the form of entries in the book of
depositories.
Essentially, unlike the traditional method of possessing a share certificate to the effect of
ownership of shares, in the demat system, the shares are held in a dematerialized form. This
system works through a depository who is registered with the Securities and Exchange Board of
India (SEBI) to perform the functions of a depository as regulated by SEBI. Under Section 68 B
of the Companies Act, inserted by the Companies (Amendment) Act, 2000, it is mandated
that every Initial Public Offer (IPO) made by a listed company in the excess of Rs. 10 Crores
has to be issued in dematerialized form by complying with the requisite provisions of the
Depositories Act, 1996.

Background
Indian capital market has seen unprecedented boom in its activity in the last 15 years in terms of
number of stock exchanges, listed companies, trade volumes, market intermediaries, investor
population, etc. However, this surge in activity has brought with it numerous problems that
threaten the very survival of the capital markets in the long run, most of which are due to the
large volume of paper work involved and paper based trading, clearing and settlement.

Until the late eighties, the common man kept away from capital market and thus the quantum
of funds mobilized through the market was meager. A major problem, however, continued to
plague the market. The Indian markets were drowned in shares in the form of paper and hence
it was problematic to handle them. Fake and stolen shares, fake signatures and signature
mismatch, duplication and mutilation of shares, transfer problems, etc. The investors were
scared and were under compensated for the risk borne by them. The century old system of
trading and settlement requires handling of huge volumes of paper work. This has made the
investors, both retail and institutional, wary of entering the capital market. However, lack of
modernization become a hindrance to growth and resulted in creation of cumbersome
procedures and paper work.

However, the real growth and change occurred from mid-eighties in the wake of liberalization
initiatives of the Government. The reforms in the financial sector were envisaged in the banking
sector, capital market, securities market regulation, mutual funds, foreign investments and
Government control. These institutions and stock exchanges experienced that the certificates are
the main cause of investors` disputes and arbitration cases. Since the paper work was not
matching the rapid growth so there was a need for a better system to ensure removal of these
impediments.
Government of India decided to set up a fully automated and high technology based model
exchange that could offer screen-based trading and depositories as the ultimate answer to all such
reforms and eliminate various bottlenecks in the capital market, particularly, the clearing and
settlement system in stock exchanges.[1] A depository in very simple terms is a pool of pre-
verified shares held in electronic mode which offers settlement of transactions in an efficient and
effective way.

Meaning of dematerialization
dematerialization is a process by which physical certificates of an investor are converted into
electronic form and credited to the account of the depository participant. dematted securities do
not have any certificate numbers or distinctive numbers and are dealt only in quantity, i.e.,
the securities are replaceable.
Investors can dematerialize only those certificates that are already registered in their names and
are in the list of securities admitted for dematerialization. These are: shares, scrips, stocks, bonds,
debentures, stock or other marketable securities of a like nature in or of any incorporated
company or other body corporate, units of mutual funds, rights under collective investment
schemes and venture capital funds, commercial paper, certificate of deposit, securities debt,
money market instruments and unlisted securities, underlying sharing of American depository
Receipts and Global depository Receipts issued to non-resident holders.[2] dematerialization
is the process of converting physical holdings into electronic form with the depository wherein
the share certificates are shredded and corresponding entry of the number of shares is done in
the opened with the depository.

The securities held in dematerialized form are fungible; that is, the y do not bear any notable
feature like distinctive number, folio number or certificate number. Once shares get
dematerialized, they lose their identity in terms of share certificate distinctive numbers and folio
numbers.

Following requisites are necessary for dematerialization of securities:

1. Investors should have a depository account.
2. Securities should be from the eligible list of securities issued by the depository.[3]
3. Securities must be in the name of the account holders and owned by him.
4. Separate demat requisition form is required for each issuer company.
5. DRF[4] should be signed by all the holders so as to match specimen signature.

Object of Demat System

India has adopted this system in which book entry is done electronically. It is the system
where no paper is involved. Physical form is extinguished and shares or securities are held in
electronic mode. Before the introduction of the depository system by the Depository Act, 1996,
the process of sale, purchase and transfer of shares was a huge problem and the safety
perspective was zero.

Demat has the following advantages:

Demat system not only provides smooth and hassle-free way of dealing in shares, it also does
away with all the associated tensions.
Bad deliveries are minimized
Postal delays and loss of shares in transit is prevented
Immediate transfer of shares
No stamp duty on transfer
Less paper work (reduction in huge volumes).
Faster settlement cycles and payouts.
The demat system totally avoids the associated heartburns arising from theft of shares,
mutilation, forgery, counterfeit shares and loss of shares during a natural calamity.

The Depository system has the following benefits to different groups:

Benefit to the Country
The depository system helps the capital market to be more liquid, attracting more foreign
investors and is in compliance with international standards, as it creates efficient and risk-free
trading environment.
It minimises the settlement risks and frauds in carrying out transactions in capital markets and
thus can restore faith of investors in capital markets.
It helps to reduce delay in trading practices creating investor friendly atmosphere in the capital
markets.
Benefit to the Company
The depository system helps in reducing the cost of new issues due to less printing and
distribution cost.
It increases the efficiency of the registrars and transfer agents and the Secretarial Department of
the company.
It provides better facilities for communication and timely services with shareholders, investor
etc.

Benefit to the Investor

The depository system reduces risks involved in holding physical certificated, e.g., loss, theft,
mutilation, forgery, etc.
It ensures transfer settlements and reduces delay in registration of shares.
It ensures faster communication to investors.
It helps avoid bad delivery problem due to signature differences, etc.
It ensures faster payment on sale of shares.
No stamp duty is paid on transfer of shares.
It provides more acceptability and liquidity of securities.

Benefit to Brokers
The depository system reduces risk of delayed settlement.
It ensures greater profit due to increase in volume of trading.
It eliminates chances of forgery – bad delivery.
It increases overall of trading and profitability.
It increases confidence in investors.

Agency in Depositories
India has chosen the concept of multi-depositories.[5] Presently, there are two depositories
registered with SEBI;
National Securities Depository Limited (NSDL)
Central Depository Service (India) Limited (CDSL)
National Securities Depository Limited (NSDL)
Both agencies are linked with each other. NSDL is a public limited company incorporated under
the Companies Act, 1956. Four renowned institutions participate in it. Unit Trust of India (UTI),
Industrial Development Bank of India (IDBI), National Stock Exchange of India (NSE), State
Bank of India (SBI).UTI is the largest mutual fund of India and IDBI is the largest
development bank, NSE is the largest stock exchange of India and SBI is the largest commercial
bank of India having clearing facility. HDFC and Citibank also share in this system.[6] NSDL
is managed by Board of directors headed by a managing director. It is governed by its bye-laws
and its business operations are regulated by business rules. NSDL interfaces with the investors
through players or business partners. Constituents of depository compromise of clearing
corporation, brokers, clearing member, registrar and transfer agents, company or issuer, stock
exchange, bank depository participant and investors. All are electronically linked to the main
depository for the settlement of trades and to perform a daily reconciliation of all accounts
held with NSDL.

Central Depository Service (India) Limited (CDSL)

Second agency is CDSL - Central Depository Service (India) Limited. Main functions of this
agency are centralized database and accounting. Major participant in CDSL[7] are LIC, GIC and
BSE. This agency is set up with the object to keep in mind to accelerate growth of scripless
trading, with major thrust of individual participation and creating competitive environment,
responsible to the users interests and demands to enhance liquidity. CDSL aims to retain the
entire data of the investors in the central database of CDSL. It has opted for it with the following
objectives:
Within time information is available to issuers/registrar’s and share transfer agents.
Companies can monitor critical holdings, e.g., holding of FIIs and FIs, investment companies,
etc., by using up the parameters through their front-end terminals.
There is no other database in the system to reconcile.

No additional security or storage cost of data or critical database residing at the front-end
terminals with the issuers/registrars.
Recover only the annual maintenance charges.

CDSL signed a memorandum of understanding with NSDL for inter-depository connectivity.

Presently, more than half the business of depositories is handled by this agency. Role of both
these agencies has become very vital after SEBI’s declaration that there would be no deals in
physical form and only dealing to happen in market through demat accounts.

Depository Participant
Similar to the brokers who trade on your behalf in and outside the Stock Exchange; a Depository
Participant (DP) is the representative (agent) in the depository system providing the link between
the Company and the investor through the Depository. Depository Participant maintains
investor’s securities account balances and intimates him the status of your holding from time
to time. According to SEBI guidelines, Financial Institutions like banks, custodians, stockbrokers
etc. can become participants in the depository. A DP is one with whom you need to open an
account to deal in electronic form. While the Depository can be compared to a Bank, DP is like a
branch of bank with whom one can have an account.

Process of Demating Shares

The process of opening an account with a Depository Participant is similar to the opening of a
bank account.

One has to open an account with a Depository Participant (DP) by filling up an Account Opening
Form and signing a “Participant-Client Agreement”. Then a unique client ID number will be
given, which must be quoted in all correspondence with the DP.

Thereafter, one has to fill up and submit a Dematerialization Request Form (DRF) provided by
the DP duly signed by all the holders and surrender the physical shares intended to be dematted
to the DP.

The DP upon receipt of the shares and the DRF will issue an acknowledgement and will send an
electronic request to the Company/ Registrars and Transfer Agents of the Company through the
Depository for confirmation of demat. The DP will simultaneously surrender the DRF and the
shares to the Company / Registrars and Transfer Agents of the Company with a covering letter
requesting the Company to confirm demat.

The Registrars and Transfer Agents of the Company, after necessary verification of the
documents received from the DP, will cancel the physical shares and confirm demat to the
Depository. This confirmation will be passed on by the Depository to the DP which holds
investor’s account. After receiving this confirmation from the Depository, the DP will credit
investor account with the number of shares dematerialized. The DP will hold the shares in
the dematerialized form thereafter on behalf of the investor. And hence one becomes the
beneficial owner of these dematerialized shares.

When the beneficial owner submits the shares for dematerialization, his DP will deface the share
certificates with the stamp “SURRENDERED FOR DEMATERIALISATION”. This ensures that
shares are not lost in transit or misused till credit is received in demat account.

VISION? MISSION AND @UALITY POLICY

Our Vision : Strive to be the leaders and experts through our processes, people and technology
offering the unique blend that delivers superior value by establishing and maintaining the highest
levels of services and professionalism.

About Karvy Group

The Karvy group was formed in 1983 at Hyderabad, India. Karvy ranks among the top player
in almost all the fields it operates. Karvy Computershare Limited is India’s largest Registrar
and Transfer Agent with a client base of nearly 500 blue chip corporates, managing over 70
million accounts. Karvy Stock Broking Limited, a member of National Stock Exchange of
India and the Bombay Stock Exchange, ranks among the top 5 stock brokers in India. With
over 6, 00,000 active accounts, it ranks among the top 5 Depository Participant in India,
registered with NSDL and CDSL. Karvy Comtrade, Member of NCDEX and MCX ranks
among the top 3 commodity brokers in the country. Karvy Insurance Broking Limited is
registered as a Broker with IRDA and ranks among the top 5 insurance agents in the country.
Registered with AMFI as a corporate Agent, Karvy is also among the top Mutual Fund
mobilizer with over Rs. 5,000 crores under management. Karvy Realty (India) Limited, which
started in 2006, has quickly established itself as a broker who adds value, in the realty sector.
Karvy Global offers niche off shoring services to clients in the US. Karvy has 575 offices over
375 locations across India and overseas at Dubai and New York.

Organization:
Karvy was started by a group of five chartered accountants in 1979. The partners decided to
offer, other than the audit services, value added services like corporate advisory services to
their clients. The first firm in the group, Karvy Consultants Limited was incorporated on 23rd
July, 1983. In a very short period, it became the largest Registrar and Transfer Agent in India.
This business was spun off to form a separate joint venture with Computershare of Australia, in
2005. Karvy’s foray into stock broking began with marketing IPOs, in 1993. Within a few years,
Karvy began topping the IPO procurement league tables and it has consistently maintained its
position among the top 5. Karvy was among the first few members of National Stock
Exchange, in 1994 and became a member of The Stock Exchange, Mumbai in 2001.
Dematerialization of shares
gathered pace in mid-93s and Kar*y (as in the forefront educating in*estors on the
ad*antages of dematerializing their shares. Today Kar*y is among the top 1 Depository
Farticipant in India.

PRODUCTS & SCHEMES OF KARVY

Overview

Karvy Stock Broking Limited is part of KARVY Group; one of India's leading financial
services company, renowned for its quality of investment advice. Karvy Stock Broking
Limited offers customized investment solutions to corporate, institutions and individual
investors, through its wide network of offices across India.

At Karvy we help you to construct a portfolio factoring in your risk profile and your future
financial needs, so that your investments achieve an optimal balance between risk and
returns.

Our comprehensive account helps you to approach various investment avenues in an

integrated fashion, providing you the facility to transact with ease. So whether you want to
trade in Equities, Derivatives , Currency or invest in IPOs, Mutual funds or NCDs, we
have a combined account facility that caters to all these needs. This account also permits
you to
seamlessly integrate your movements of funds with ease through various payment
gateways.

Our Product Classes

Equity
Equity:

Equity is difference of the value of assets and liabilities of a compan y. Shareholder's equity
represents the equity of a company as divided amongst individual shareholders. It is
shareholder's equity which are traded on exchanges under different segments including Cash,
Futures and Options.
karvyonline.com offers you various options while trading in equities such as Delivery, Day
trading etc. All this options are designed to suite your trading needs.

Delivery Trading:
Delivery Trading:

Stocks are bought by paying full price with no margin given. This facility allows you to place
orders for transactions on stock exchanges which are intended for delivery into your demat
account. We facilitate in taking the right position through different in-house research reports.

Day Trading:
Day Trading:

This is suitable for investors who are interested in Intra-Settlement trading for transactions
bought and sold within the same trading day. You can also leverage your position and trade more
than your available funds. We facilitate various recommendations during trading hours on our
online trading terminal in order to serve you better.
Read More

Buy Today Sell Tomorrow (BTST)

Buy Today Sell Tomorrow (BTST):

This is a facility offered by Karvyonline.com wherein the client will be able to sell the
shares that he/she has purchased the previous day even before receiving the delivery of the
shares from the Exchange.

After Market Order (AMO):

After Market Order (AMO):

Stock market opens at 9.15 am and closes at 3.30 pm on weekdays. For many of you, stock
market trading or investing may not be a primary profession and you could be busy.
Karvyonline.com offers you the After Market Order (AMO) feature, which helps you to place an
order beyond the regular trading hours. This facility is provided to all customers who have online
trading accounts.

Read More

Market Order
Market Order:

You could trade by placing market orders during market hours that allows you to trade at the best
obtainable price in the market at the time of execution of the order.

Limit Order
Limit Order:
It allows you to place a buy/sell order at a price defined by you. The execution can happen at
a price more favourable than the price which is defined by you. Limit orders can be placed during
holidays & non market hours too.

Read More

Cover Order:
Cover Order:

You can place a buy order and corresponding sell stop loss order at one go instead of placing two
orders and vice versa. The stop loss helps the client in covering the loss.

Basket Order
Basket Order:

Basket orders are a utility available in Karvy online.com, wherein you can place multiple orders
at one time.

Read More

Basket Order
Bracket Order:

Bracket orders are designed to help limit your loss and lock in a profit by "bracketing" an
order with two opposite-side orders. A BUY order is bracketed by a high-side sell limit order
and a lower-side sell stop order. A SELL order is bracketed by a higher-side buy stop order and a
lower side buy limit order.

A derivative is a contract between two parties which derives its value from an und erlying asset
which can be an Index, Equity, Commodities, etc. This investment option provides a good
leverage opportunity and is a great tool for speculation. It can be traded in index futures and
index options, stock futures and stock options.

derivative-Futures
Futures:

A future is a contract to buy or sell the underlying asset for a specific price at a pre-
determined time. Through karvyonline.com, you can now trade in index and stock futures on
the NSE. In futures trading, you take buy/sell positions in index or stock(s) contracts hav ing a
longer contract period of up to 3 months. Trading in futures is simple! If, during the course of
the contract life, the price moves in your favour (i.e. rises in case you have a buy position or
falls in case you have a sell position), you make a profit.

derivative-Options
Options:

An option is a contract, which gives the buyer the right to buy or sell shares at a specific
price, on or before a specific date. For this, the buyer has to pay to the seller some money,
which is called premium. There is no obligation on the buyer to complete the transaction if the
price is not favourable to him. To take the buy/sell position on index/stock options, you have to
place certain percentage of order value as margin. With options trading, you can leverage on your
trading limit by taking buy/sell positions much more than what you could have taken in cash
segment.

Call Option has the Right but not the Obligation to Purchase the Underlying Asset at the
specified strike price by paying a premium, whereas the Seller of the Call has the obligation of
selling the Underlying Asset at the specified Strike price.
Put Option has the Right but not the Obligation to Sell the Underlying Asset at the specified
strike price by paying a premium, whereas the Seller of the Put has the obligation of buying the
Underlying Asset at the specified Strike price.
By paying lesser amount of premium, you can create positions under OPTIONS and take
advantage of more trading opportunities.
Currency
Currency Derivatives
Currency Derivatives has also emerged as an important and interesting new asset class for
investors. Currency options would provide an opportunity to take a view on exchange rate and
fulfill both investment and hedging objectives.

Advantages of Currency Derivatives:

Trading hours of 09:00 am to 05:00 pm provide more trading opportunities

Trade in prominent currencies like US Dollar, EURO, Pound, Yen against Indian Rupee
Real time and transparent currency rates in comparison to OTC rates
No Counterparty Default risk due to settlement guarantee by regulated clearing house
Low Taxation (No STT and CTT)
Daily Cash Settlement in INR via MTM (Mark to Market)
Karvy online offers you a simple and convenient trading tips to trade and hedge your currency
risk in four pair of currencies - US Dollars (USD), Euro (EUR), Great Britain Pound (GBT) and
Japanese Yen (JPY). By offering you the choice of trading in different asset class of currencies
we offer you the opportunity to diversify your portfolio.

We also offer advisory and brokerage services for the Indian currency derivative markets.
We provide online trading platform to our clients that enable them to trade whenever they
choose while receiving instant professional support on where to invest. With our powerful
expertise in financial services that exists across India, along with an enviable technological edge,
we are all set to bring to you the opportunity of investing in the rapidly growing currency
market. The currency derivatives market will be an added advantage to your portfolio as it
will help to manage your price risks and add to your investment avenues
AREA OF OPERATIONS-GLOBAL/NATIONAL/REGIONAL

The Karvy Group is a premier integrated financial services provider, ranked among the
top-5 in the country across its business segments. The Group services over 70 million
individual investors in various capacities, and provides investor services to over 600
corporate houses. Karvy Group established its presence through a wide network of
over 450 branches, (or 900 offices) covering in excess of 400 cities and towns.
Karvy covers the entire spectrum of financial services, viz stock broking, depository
participant, distribution of financial products (including mutual funds, bonds and fixed
deposits), commodities broking, personal finance advisory services, merchant banking &
corporate finance, wealth management, NBFC, among others.

The Group is professionally managed and ranks among the best in technology,
operations and research across the financial industry. The Karvy Group has evolved over
the last three decades and today it assumes many avatars.

COMPETITORS OF KARVY

A diversified financial services group with a pan-India presence and presence in multiple
international locations, Religare Enterprises Limited ("REL") offers a comprehensive suite of
customer-focused financial products and services targeted at retail investors, high net worth
individuals and corporate and institutional clients.

REL, along with its joint venture partners, offers a range of products and services in
India, including asset management, life insurance, wealth management, equity and commodity
broking, investment banking, lending services, private equity and Mutual Fund.

With a view to expand and diversify, REL operates in the life insurance space under
'Aegon Religare Life Insurance Company Limited' and has launched India's first wealth
management joint venture under the brand name 'Religare Macquarie Private Wealth'.

REL operates from seven domestic regional offices, 43 sub-regional offices, and has a
presence in 498 cities and towns controlling 1,837* business locations all over India.

The India Infoline group, comprising the holding company, India Infoline Limited and its
wholly-owned subsidiaries, straddle the entire financial services space with offerings ranging
from Equity research, Equities and derivatives trading, Commodities trading, Portfolio
Management Services, Mutual Funds, Life Insurance, Fixed deposits, GoI bonds and other small
savings instruments to loan products and Investment banking. India Infoline also owns and
manages the websites www.indiainfoline.com and www.5paisa.com
The company has a network of 976 business locations (branches and sub-brokers) spread
across 365 cities and towns. It has more than 800,000 customers.
Shriram insight Share Brokers Ltd. was incorporated in 1995; it was promoted by
professional entrepreneurs and incubated by Shriram group. It commenced operations
with corporate membership on NSE in cash segment in 1996.
It provides customers with access to Equity, Equity and Commodity Derivatives,
Mutual Funds, IPOs, Life and General Insurance products and Gold Coins. Shriram
Insight Share Brokers Ltd. is the stock broking arm of 14… crore (3.2bn) Shriram group, a
name to reckon with in the financial services sector for the past 3 decades and market leader
in truck finance. Shriram Insight has some corporate vision to achieve the success ladder.

Reliance Money, a Reliance Capital company and part of the Reliance Anil Dhirubhai
Ambani Group is a comprehensive financial services and solution provider. It is a one-stop-
shop, providing end-to-end financial solutions (including mobile and web-based services). It
has the largest non-banking distribution channel with over 10,000 outlets and 20,000
touchpoints spread across 5,165 cities/ towns; catering to the diverse needs of over 3
million existing customers.

Reliance Money endeavors to change the way investors transact in financial markets
and avails financial services. It provides customers with access to Equity, Equity and
Commodity Derivatives, Offshore Investments, Portfolio Management Services, Wealth
Management Services, Investment Banking, Mutual Funds, IPOs, Life and General Insurance
products and Gold Coins. Customers can also avail Loans, Credit Card, Money Transfer and
Money Changing services.
UNICON is a financial services company which has emerged as a one-stop investment
solutions provider. It was founded in 2004 by two visionary and flamboyant entrepreneurs,
Mr. Gajendra Nagpal and Mr. Ram M. Gupta, who possess expertise in the field of Finance.
The company is headquartered in New Delhi, and has its Corporate office in Mumbai with
regional offices in Kolkata, Chennai, Hyderabad and Noida.

UNICON is a professionally managed company led by a team with outstanding

managerial acumen and cumulative experience of more than 400 man years in the financial
markets The Company is supported by more than 4500 Uniconians and has a team of over 900
business offices in 235 cities across India and a customer base of over 2,00,000.

Kotak Securities Ltd. 100 % subsidiary of Kotak Mahindra Bank is one of the oldest
and largest broking firms in the Industry. Kotak Securities offers include stock broking
through the branch and Internet, Investments in IPO, Mutual funds and Portfolio management
service. Kotak Securities is also a depository participant with National Securities Depository
Limited (NSDL)
and Central Depository Services Limited (CDSL), Kotak process more than 400000 trades a day
which is much higher even than some of the renowned international brokers. The Network of
Kotak Securities spans over 331 cities with 843 outlets.

Kotak Securities Limited has Rs. 2599 crore of Assets Under Management (AUM) as
of 30th June, 2009. The portfolio Management Service provides top class service, catering to
the high end of the market. Portfolio Management from Kotak Securities comes as an answer
to those who would like to grow exponentially on the crest of the stock market, with the
backing of an expert.
ACHIEVEMENT/AWARD

THE SKOCH — BSE ORDER OF MERIT AWARD AND THE SKOCH — BSE ASPIRING
NATION AWARD

KARVY COMTRADE LIMITED RECEIVED “MARKET EXCELLENCE AWARD?

COMMODITIES - METAL” IN ZEE MARKET EXCELLENCE AWARDS 2&1*
HELD AT THE TAJ MAHAL PALACE HOTEL? MUMBAI ON *TH AUGUST. THE
HON7BLE UNION MINISTER FOR POWER? RENEWABLE ENERGY AND
MINING? MR. PIYUSH GOYAL HANDED OVER THE PRESTIGIOUS AWARD TO
KCTL REPRESENTATIVE.

THE SKOCH — BSE ORDER OF MERIT AWARD AND THE SKOCH — BSE ASPIRING
NATION AWARD

MR. RAJAT PARTHASARATHY? DIRECTOR? KARVY GROUP AND MR. RAJIV

RANJAN SINGH? VICE-PRESIDENT 9 BUSINESS HEAD - STOCK BROKING
RECEIVING AWARDS FROM INDIA7S PREMIER STOCK EXCHANGE BSE - THE
SKOCH — BSE ORDER OF MERIT AWARD AND THE SKOCH — BSE ASPIRING
NATION AWARD - IN RECOGNITION OF ITS EFFORTS TO EDUCATE? EMPOWER
AND HELP CREATE AN ENLIGHTENED CORPS OF FINANCIAL MARKET
INVESTORS.

MR. SUDHENDOO GANDHI? GM? KSBL? RECEIVING THE QNSDL STAR

PERFORMER AWARD 2&1>” FOR HIGHEST ASSET VALUE
MR. SUSHIL SINHA? BUSINESS HEAD? KCTL 9 MR. SURESH RAVAL? GENERAL
MANAGER? KCTL RECEIVING THE BROKER WITH BEST CORPORATE DESK
FOR COMMODITY BROKING7 AWARD FROM HON7BLE FINANCE MINISTER
THEN - SRI PRANAB MUKERJEE AT THE BLOOMBERG UTV FINANCIAL
LEADERSHIP AWARDS 2&11

MR. C PARTHASARATHY? CHAIRMAN? KARVY GROUP? RECEIVING THE

LARGEST E-BROKING HOUSE IN INDIA7 AWARD AT THE DUN 9 BRADSTREET
— BSE E@UITY BROKING AWARDS 2&1&

KARVY STOCK BROKING LIMITED

2&1>

WON THE PRESTIGIOUS QNSDL STAR PERFORMER AWARD 2&1> FOR HIGHEST
ASSET VALUEQ. ORGANIZED BY THE NATIONAL SECURITIES DEPOSITORY?
THE NSDL STAR PERFORMERS AWARDS RECOGNIZE THE BEST PERFORMERS
IN THE SECURITIES AND DEPOSITORIES SPACE. THE AWARD CEREMONY WAS
ORGANIZED ON SATURDAY? DECEMBER 2&? 2&1>? AT TAJ COROMADEL?
CHENNAI. KARVY HAS WON THIS AWARD CONSECUTIVELY FOR LAST TWO
YEARS.

2&1&
QLARGEST E-BROKING HOUSE IN INDIAQ AT BSE E@UITY BROKING AWARDS
2&1& BY DUN 9 BRADSTREET HELD IN ITC GRAND MARATHA? MUMBAI.
THIS AWARD IS BASED ON THE STUDY CARRIED OUT BY THE WORLD7S
LEADING PROVIDER OF BUSINESS INFORMATION? KNOWLEDGE AND
INSIGHT? DUN 9 BRADSTREET IN ASSOCIATION WITH THE OLDEST STOCK
EXCHANGE IN INDIA? THE BOMBAY STOCK EXCHANGE.

THE BSE-D9B E@UITY BROKING AWARDS RECOGNIZES THE BROKERAGE

FIRMS BASED ON THE NUMBER OF ONLINE ACCOUNTS? VOLUME OF
ONLINE TRADE? AND SERVICE DELIVERY OF THEIR ONLINE TRADING
PLATFORM. KARVY STOCK BROKING LIMITED HAS WON THIS
PRESTIGIOUS AWARD FOR ITS STATE OF THE ART? IN-HOUSE DEVELOPED
KARVYONLINE? A COMPREHENSIVE ONLINE INVESTMENT PLATFORM
THAT ENABLES INVESTORS TO INVEST? ANYTIME FROM ANYWHERE.

2&&)

BAGGED ACE AWARD BY RECEIVING THE COVETED ANNUAL AWARD FOR 2&&*
FOR QBEST CEO? INITIATING HR PRACTICES”? BY? THE UTTAR PRADESH
CHAPTER OF NATIONAL INSTITUTE OF PERSONNEL MANAGEMENT (NIPM).
THE AWARD HAS BEEN CONFERRED TO MR. C PARTHASARATHY? CMD? KARVY
GROUP? FOR HIS CONTRIBUTION TO HR PRACTICES IN LUCKNOW?
ORGANIZED BY UP CHAPTER OF NIPM.

2&&)

QAMITY CORPORATE EXCELLENCEQ AWARD AT THE 9TH INTERNATIONAL

BUSINESS SUMMIT AND RESEARCH CONFERENCE-INBUSH
(INTERNATIONAL BUSINESS HORIZON) WHICH WAS HELD AT A
GLITTERING FUNCTION IN NOIDA. THIS AWARD WAS CONFERRED BY AMITY
INTERNATIONAL BUSINESS SCHOOL? NOIDA.
2&&*

ISTD — QVIVEKANANDA NATIONAL AWARDQ FOR EXCELLENCE IN HRD 9

TRAINING

2&&>

QBEST DEPOSITORY PARTICIPANT IN THE COUNTRYQ AWARD

KARVY COMTRADE

LIMITED 2&1>

WON THE PRESTIGIOUS ZEE BUSINESS AWARD FOR THE QBEST AGRI.
ANALYSTQ 2&1> IN THE FIFTH EDITION OF INDIA7S BEST MARKET
ANALYST AWARDS ON SATURDAY? 1+TH DEC. 2&1> AT THE LALIT IN
MUMBAI.

2&11

AWARDED THE QBROKER WITH BEST CORPORATE DESK FOR COMMODITY

BROKINGQ AT THE PRESTIGIOUS BLOOMBERG UTV FINANCIAL
LEADERSHIP AWARDS 2&11 HELD IN HOTEL TAJ LANDSEND? MUMBAI.
HON7BLE FINANCE MINISTER OF INDIA THEN? SHRI. PRANAB MUKERJEE
WAS THE CHIEF GUEST. THE AWARDS HAVE BEEN DECIDED BY EMINENT
JURY CONSISTING OF REPUTED ECONOMISTS? MANAGEMENT 9
FINANCIAL CONSULTANTS.
BLOOMBERG UTV FINANCIAL LEADERSHIP AWARDS HAVE BEEN
INSTITUTED TO ACKNOWLEDGE THE CONTRIBUTION OF THE COUNTRY7S
FINANCIAL CHAMPIONS FOR EXTRAORDINARY WORK DONE IN FINANCIAL
SECTOR. THIS AWARD IS A REFLECTION OF KARVY COMTRADE -
CORPORATE DESK7S UNPARALLELED STRENGTHS IN PROVIDING UNI@UE
RISK MANAGEMENT STRATEGIES AND HEDGING CALCULATORS FOR
CORPORATES. KARVY COMTRADE7S ABILITY TO HANDLE LARGE VOLUMES
OF TRADE. EFFICIENTLY WITH PROMPT? ACCURATE AND TAILOR-MADE
SERVICES BY A TALENTED POOL OF PROFESSIONALS ENSURES THAT
KARVY REMAINS RELEVANT TO CLIENT AT ALL TIMES.

2&11

ADJUDGED AS THE QBEST ANALYST IN BASE METAL CATEGORYQ AT THE

PRESTIGIOUS QBEST MARKET ANALYSTS AWARDS 2&11Q BY ZEE BUSINESS
IN ASSOCIATION WITH NCDEX (NATIONAL COMMODITY 9 DERIVATIVES
EXCHANGE LIMITED). THE AWARD CEREMONY WAS GRACED WITH THE
PRESENCE OF EMINENT DIGNITARIES.

ZEE BUSINESS BEST MARKET ANALYST AWARDS HAVE BEEN INSTITUTED TO

HONOUR THE CONTRIBUTIONS OF INDIA7S LEADING FINANCIAL EXPERTS IN
EMPOWERING THE RETAIL INVESTORS. THE NOMINATIONS FOR THE AWARDS
WERE INVITED FROM COMMODITIES 9 STOCK BROKING COMPANIES AND
FUND HOUSES AND WERE BEING JUDGED ON OVERALL RETURNS ACHIEVED
FOR THE STOCKS? COMMODITIES? SECTORS AND COMPANIES? THE ANALYSTS
TRACKED FROM APRIL 2&1& TO DECEMBER 2&1&.
Chapter 2

.
REVIEW OF LITERATURE

Meaning and definition:

According to Philip Kotler “Competitor Analysis refers to the process of identifying key
competitors, assessing their objectives, strategies, strength and weaknesses, and reaction
patterns, and selecting which competitors to attack or avoid.”
Once a company identifies its primary competitors, it must ascertain their strategies, objectives,
strength and weaknesses.
Strategies: A group of firms following the same strategy in a given target market is called a
strategic group.
Objectives: Once a company has identified its competitors and their strategies, it must ask;
what is each competitor seeking in the marketplace? What drives each competitor’s behavior?
Many factors shape a competitor’s objectives, including size, history, current management, and
financial situation. If the competitor is a division of a larger company, it is important to
know whether the parent company is running it for growth, profits, or milking it.
Strengths and Weaknesses: A company needs to gather information about each competitor’s
strength and weaknesses.
In general, a company should monitor three variables when analyzing competitors:
• Share of market: the competitor’s share of the target market.

• Share of mind: the percentage of customers who named the competitor in responding to
the statement, “Name the first company that comes to mind in this industry.”

• Share of heart: the percentage of customers who named the competitors in responding to
the statement, “Name of the company from which you would prefer to buy the product”.

Companies that make steady gains in mind share and heart share will inevitably make
gains in market share and profitability.
To improve market share, many companies benchmark their most successful competitors, as well
as other world-class performers.
Identifying competitors: Normally, identifying competitors would seem a simple task. At the
narrowest level, a company can define its competitors as other companies offering similar
products and services to the same customers at similar prices.
Assessing Competitors: Having identified the main competitors, marketing management
now asks: What are competitor’s objectives—what does each seek in the marketplace? What is
each competitor’s strategy? What are various competitor’s strength and weaknesses, and how
will each react to actions the company might take?
• Determining Competitor’s Objectives: Each competitor has a mix of objectives. The
company wants to know the relative importance that a competitor places on current
profitability, market share growth, cash flow, technological leadership, service leadership,
and other goals. Knowing a competitor’s mix of objectives reveals whether the
competitor is satisfied with its current situation and how it might react to different
competitive actions. For example, a company that pursues low-cost leadership will react
much more strongly to a competitor’s cost-reducing manufacturing breakthrough than
to the same competitor’s advertising increase.

• Identifying Competitor’s Strategies: The more that one firm’s resembles another
firm’s strategy, the more the two firms complete. In most industries, the competitors
can be sorted into groups that pursue different strategies. A strategic group is a group of
firms in an industry following the same or a similar strategy in a given target market.

• Assessing Competitor’s Strength and Weaknesses: Marketers need to assess each

competitor’s strength and weaknesses carefully in order to answer the critical question:
What can our competitors do? As a first step, companies can gather data on each
competitor’s goals, strategies, and performance over the past few years. Admittedly, some
of this information will be hard to obtain. For example, business to business marketers
find it hard to estimate competitors’ market shares because they do not have the same
syndicated data services that are available to consumer packaged-goods companies.

Companies normally learn about their competitors strength and weaknesses through secondary
data, personal experience, and word of mouth. They can also conduct primary marketing
research with customers, suppliers, and dealers. Or they can benchmark themselves against other
firms, comparing the company’s products and processes to those of competitors or leading firms
in other industries to find ways to improve quality and performance. Benchmarking has become
a powerful tool for increasing a company’s competitiveness.
• Estimating Competitor’s Reactions: next, the company wants to know: what will our
competitors do? A competitor’s objectives, strategies, and strength and weaknesses go
a long way toward explaining its likely actions. They also suggest its likely rections to
company moves such as price cuts, promotion increases, or new-product introductions. In
addition, each competitor has a certain philosophy of doing business, a certain internal
culture and guiding beliefs. Marketing managers need a deep understanding of a given
competitor’s mentality if they want to anticipate how the competitor will act or react.

Selecting competitors to Attack and Avoid

A company has already largely selected its major competitors through prior decisions on
customer targets, distribution channels, and marketing-mix strategy. Management now must
decide which competitors to complete against most vigorously.

• Strong or Weak Competitors:

The company can focus on one of several classes of competitors. Most companies prefer to
complete against weak competitors. This requires fewer resources and less time. But in the
process, the firm may gain little. You could argue that the firm also should complete with strong
competitors in order to sharpen its abilities.
A useful tool for assessing competitor strengths and weaknesses is customer value analysis.
The aim of customer value analysis is to determine the benefits that target customers value and
how customers rate the relative value of various competitor’s offers.
• Close or Distant Competitors:
Most companies will compete with close competitors- those that resemble them most- rather than
distant competitors. Thus, Nike competes more against Adidas than against Timberland. And
target competes with WalMart rather than against Neiman Marcus or Nordstrom.
• “Good” or “Bad” Competitors

A company really needs and benefits from competitors. The existence of competitors results in
several strategic benefits. Competitors may help increase total demand. They may share the costs
of market and product development and help to legitimize new technologies. They may serve
less-attaractive segments or lead to more product differentiation. Finally, they lower the antitrust
risk and improve bargaining power versus labor or regulators.

Competitive Strategies: Having identified and evaluated its major competitors, the company
now must design broad competitive marketing strategies by which it can gain competitive
advantage through superior customer value. But what broad marketing strategies might the
company use? Which ones are best for a particular company, or for the company’s different
divisions and products?

Basic competitive Strategies

Almost three decades ago,Michael Porter suggested four basic competitive positioning strategies
that companies can follow- three winning strategies and one losing one. The three winning
strategies include:
• Overall cost leadership: Here the company works hard to achieve the lowest production
and distribution costs. Low costs let it price lower than its competitors and win a
large market share. Texas Instruments, dell, and Wal-Mart are leading practitioners
of this strategy.

• differentiation: Here the company concentrates on creating a highly diffentiated product

line and marketing program so that it comes across as the class leader in the industry.
Most customers would prefer to own this brand if its price is not too high. IBM and
Caterpillar follow this strategy in information technology and services and heav y
construction equipment, respectively.
• Focus: Here the company focuses its effort serving a few market segments well rather
than going after the whole market.

Selecting customers: As part of the competitive analysis, firms must evaluate its customer
base and think about which customers it’s willing to lose and which it wants to retain. One
way to divide up the customer base in terms of whether a customer is valuable and vulnerable,
creating a grid of four segments as a result; see below each segment suggests different
competitive activities.
Vulnerable Non Vulnerable
Valuable These customers are profitable These customers are loyal
but not completely happy with and profitable. Don’t take
the company. Find out and them for granted but maintain
address their sources of margins and reap the benefits
vulnerability to retain them. of their
Not Valuable These customers are likely to satisfaction.
defect. Let them go or These unprofitable customers
even encourage their are happy. Try to make them
departure. valuable or vulnerable.

SWOT Analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It
involves specifying the objective of the business venture or project and identifying the
internal and external factors that are favorable and unfavorable to achieving that
objective.
SWOT Analysis has done during the preparation of this project. It helps to analyse
and evaluate the company’s strength/weaknesses and opportunity and threats. Company’s
strength and weakness helps to understand their market strategies which they apply in the
marketplace in order to attract new customers as well as capturing the insight of
existing customers also. Opportunity and threats determines the company’s new
upliftment and what are the barriers comes in front of the company which creates
difficulties to enhance the market growth and increase in market share.
A SWOT Analysis is designed to identify the environment in which an organization is
operating. doing so aids in the development of communication strategies. For the
purpose of a swot analysis, internal factors are those things over which and
organization has some measure of control. External factors are those things over which an
organization as no control.
• Strengths (positive internal factors): what do we see as our organisation’s
present strengths, especially as they relate to the issues we presently confronting?

• Weaknesses (negative internal factors): what are our organization’s present

weaknesses, especially as they relate to our competitors? Remember that a
competitor, in this context, does not necessarily mean a rival company,
product, service or point of view. It could be anything that competes for the
attention of the publics being targeted.

• Opportunities (positive external factors): what potential opportunities exist in

the future especially as they relate to the issues we are presently confronting?

• Threats (negative external factors): what are the threats we face in the future
and, therefore, must be prepared to fact? Remember that a threat, in this context,
does not necessarily mean a direct threat. It can be anything that can prevent
an organization from reaching its goals.

The SWOT Analysis Grid

Strengths Opportunities
(Internal / Positive) (External / Positive)
Weaknesses Threats
(Internal / Negative) (External / Negative)

Competitive forces

Michael porter has identified five forces that determine the intrinsic long-run
attractiveness of a market or market segment: industry competitors, potential entrants,
substitutes, buyers, and suppliers. His model is shown below. The threats these forces
pose are as follows:
• Threat of intense segment rivalry: A segment is unattractive if it already contains
numerous, strong, or aggressive competitors. It’s even more unattractive if it’s
stable or declining, if plant capacity must be added in large increments, if fixed
costs or exit barriers are high, or if competitors have high stakes in staying in the
segment. These conditions will lead to frequent price wars, advertising battles, and
new product introductions and will make it expensive to complete. The cellular
phone market has seen fierce competition due to segment rivalry.

• Threat of new entrants: The most attractive segment is one in which entry barriers
are high and exit barriers are low. Few new firms can enter the industry, and poorly
performing firms can easily exit. When both entry and exit barriers are high, profit
potential is high, but firms face more risk because poorer-performing firms stay in
and fight it out. When both entry and exit barriers are low. The worst case is when
entry barriers are low and exit barriers are high: here firms enter during good times
but find it hard to leave during bad times. The result is chronic overcapacity
and depressed earnings for all. The airline industry has low entry barriers but high
exit barriers, leaving all carriers struggling during economic downturns.

• Threat of substitute products: A segment is unattractive when there are actual or

potential substitute for the product. Substitutes place a limit on prices and on
profits. If technology advances or competition increases in these substitute
industries, prices and profits are likely to fall. Greyhound and Amtrak have seen
profitability threatened by the rise of air travel.

• Threat of buyer’s growing bargaining power: A segment is unattractive if buyers

possess strong or growing bargaining power. The rise of retail giants such as Wal-
Mart has led some analysts to conclude that the potential profitability of packaged-
goods companies will become curtailed. Buyer’s bargaining power grows when
they become more concentrated or organized, when the product represents a
significant fraction of the buyer’s cost, when the product is undifferentiated, when
buyers’ switching costs are low, when buyers are price sensitive because of low
profits, or
when they can integrate upstream. To protect themselves, sellers might select
buyers who have the least power to negotiate or switch suppliers. A better defense
consists of developing superior offers that strong buyers cannot refuse.

• Threat of suppliers’ growing bargaining power: A segment is unattractive if the

company’s suppliers are able to raise prices or reduce quantity supplied. Oil
companies such as ExxonMobil, Shell, BP, and Chevron-Texaco are at the mercy
of the limited amount of oil reserves and the actions of oil-supplying cartels such
as OPEC. Suppliers tend to be powerful when they are concentrated or organized,
when there are few substitutes, when the supplied product is an important input,
when the costs of switching suppliers are high, and when the suppliers can
integrate downstream. The best defenses are to build win-win relationships with
suppliers or use multiple supply sources.
Chapter 3

RESEARCH METHODOLOGY
RESEARH METHODOLOGY

Research can be defined as a scientific and systematic search for pertinent information
on a specific topic. Research is a careful investigation of inquiry especially through
search for new facts in any branch of knowledge. In simple terms, research refers to
search for knowledge. Research comprises defining and redefining problems, formulating
hypothesis or suggested solutions collecting, organizing and evaluating data, making
deductions and reaching conclusions and at last carefully testing the conclusion
to determine whether they fit the formulating hypothesis.

Research methodology is away to systematically solve the research problem. It may

understand as a science of studying how research is done scientifically. In it, we study the
various steps that are generally adopted by the researcher in study of his research problem
along with logic behind them.
A Research design is a framework or blueprint for conducting the research of a project. It details
the procedures necessary for obtaining the information needed. A research design lays the
foundation for conducting the project.

TYPES OF RESEARCH DESIGN

Historical Research Design - The purpose is to collect, verify, synthesize evidence to

establish facts that defend or refute your hypothesis. It uses primary sources, secondary sources,
and lots of qualitative data sources such as logs, diaries, official records, reports, etc. The
limitation is that the sources must be both authentic and valid.
Case and Field Research Design - Also called ethnographic research, it uses direct
observation to give a complete snapshot of a case that is being studied. It is useful when not
much is known about a phenomenon. Uses few subjects.
Descriptive or Survey Research Design - It attempts to describe and explain conditions of the
present by using many subjects and questionnaires to fully describe a phenomenon. Survey
research design /survey methodology is one of the most popular for dissertation research. There
are many advantages.
Correlational or Prospective Research Design - It attempts to explore relationships to make
predictions. It uses one set of subjects with two or more variables for each.
Causal Comparative or Ex Post Facto Research Design - This research design attempts to
explore cause and affect relationships where causes already exist and cannot be manipulated. It
uses what already exists and looks backward to explain why.
Developmental or Time Series Research Design - data are collected at certain points in time
going forward. There is an emphasis on time patterns and longitudinal growth or change.
Experimental Research Design - This design is most appropriate in controlled settings such as
laboratories. The design assumes random assignment of subjects and random assignment to
groups (E and C). It attempts to explore cause and affect relationships where causes can be
manipulated to produce different kinds of effects. Because of the requirement of random
assignment, this design can be difficult to execute in the real world (non laboratory) setting.
Quasi Experimental Research Design - This research design approximates the experimental
design but does not have a control group. There is more error possible in the results.
Research Design:-

The design chosen for this project was “dESCRIPTIVE RESEARCH dESIGN” as
well as “EXPLORATORY” in nature, which is used when the purpose of research is:

• To describe the characteristics of certain groups:

• To estimate the prediction of people in a specified population who

behave in a certain way.

• To make specific prediction.

The approaches to data collection are as follows:

• Primary Data: These data are collected first time as original data. The data is
recorded as observed or encountered. Essentially they are raw materials. They may be
combined, totaled but they have not extensively been statistically processed.
Sources of primary data:
In this project primary data was collected through
• direct Observation
• Personal interview
• Questionnaire
• Secondary Data: This is also known as published data, data which are not originally
collected but rather obtained from published source and statistically processed are known
as secondary data.
Sources of secondary data:
• different manuals and documents
• Magazines
• Website
Sampling
Sampling procedure: The sample is selected in a random way, irrespective of them being
investors or not or availing services or not. It was collected through personal visits to the known
person, by formal and informal talks and through filling up the questionnaire prepared.

Sample size:
The sample size of my project is limited to 50 only.

Sample design:
data has been presented with the help of pie charts.

Statistical Hypothesis: A statement about the parameters of one or more population

distributors, which is formulated on the basis of sample data. It gives proper conclusion about
the population drawn, once it is tested.

• Null Hypothesis
• Alternative hypothesis

With the help of questionnaire, we used to apply chi-square test in this project in order to find out
whether there is any significant difference between Karvy Stock Broking Ltd and other stock
broking leading companies regarding their services provided.

• Null Hypothesis: Statistically, there is no significant difference between Karvy

Brokerage firm and other stock broking firm regarding their service
provided.
• Alternative hypothesis: Statistically, there is the significant difference
between Karvy brokerage firm and other stock broking firm regarding their
service provided.
NEED OF THE STUDY

The scope of the study refers to the job that to know about the activities of the
organization. The study means that the analysis of the products of the company on which he/she has to fo

during the summer training the volunteer need to find out the corporate strategies of the running company
summer training, it is necessary for the student that he /she involve with the experience guys to

get the knowledge about the company. That is how the company has got the success, Or if it is
going in the loss, why.

In my training period I have found that the Karvy group is the biggest group in Indian
companies. I felt that I can learn the more in the Karvy Stock Broking Ltd.

Karvy Stock Broking Ltd. is the part of the Karvy Group of Companies which is a
growing company in the financial products.

OBJECTIVES OF STUDY
The objectives of my project include the following:-
1. To study the financial products and services of Karvy Stock Broking Ltd.

2. To make a comparative study of competitors of Karvy Stock Broking Ltd. in Burdwan.

.

ected.

So, we can say that there is a significant difference between the services provided by karvy

DATA SOURCE

Research is totally based on primary data. Secondary data can be used only for reference.
Research has been done by the primary data collection and primary data has been collected
interacting with various people. The secondary data has been collected through various
journals and websites.

DURATION OF STUDY

The study was carried out for a period of 45 days, from 15th May 2016 to 25th june 2016.
SAMPLING PROCEDURE

The sample was selected of them who are the customers of state bank of india, Fatehgarh
churian road branch, irrespective of them being investor or not or availing the services or not.
It
was also collected through personal visit to person by formal and informal talk and through
filling up the questionnaire prepared. The data has been analysed by using mathematical tool.

LIMITATIONS OF THE RESEARCH

1. The research is confined to a certain parts of Burdwan (West Bengal) and does not necessarily
shows a pattern applicable to all of Country.

2. Some respondents were reluctant to divulge personal information which can affect the validity
of all responses.

3. In a rapidly changing industry, analysis on one day or in one segment can change very
quickly. The environmental changes are vital to be considered in order to assimilate the findings.

C0apter >

DATA ANALYSIS AND INTERPRETATION

PERCENTAGE REPRESENTATION OF DEMAT ACCOUNT PREFERENCES BY THE

(& CUSTOMERS SURVEYED:

KARVY STOCK BROKING LTD. 2>%

2&%
INDIA INFOLINE

RELIANCE MONEY1*%
1>%
RELIGARE

UNICON 1&%
SHRIRAM KOTAK 8%
8%

PIE CHART REPRESENTATION OF CUSTOMERS7 PERFERENECES FOR DEMAT

ACCOUNT IN SHARE TRADING ACTIVITIES:

In the a&o*e pie diagram# (e see that 24% of the customers prefer for demat account in
share trading acti*ities in Kar*y. While# 23% of the customers are in fa*our of India infoline to
prefer for demat account for the purpose of share trading acti*ities. Apart from this# only 8%
customers of (hole sample size are prefer demat account &oth Shriram and Kota) each.

• Are 2#u e8p;#2e5?

Yes [ ] No [ ]

Are you employed

Employed
not
employed

In the above diagram, we find that from the whole sample size, 54% of the customers are
employed person, while 46% of the customers are unemployed person. Out of 46% customers
some are students and some are businessmen included.

• Have you invested / are you interested to invest in share trading?

Yes [ ] No [ ]
• Have you invested / are you interested to invest in share trading?

Ye

NO

In the a&o*e pie chart# (e see that out of total sample size# 41% of them said that yes they
are interested to in*est money in share mar)et (hile other >1% are not interested to in*est
money in share mar)et &ecause of they already engaged in &an)ing and insurance sector to
in*est money or they are not employed.

• Do you have a Demat Account?

Yes [ ] No [ ]
Do you have demat account?

Ye
s
NO

In this a&o*e pie chart# (e see that @3% of the customers ha*ing their Demat Account in any
Stoc) &ro)ing Company# (hile >3% are those persons (ho ha*e no Demat account due to lac)
of )no(ledge a&out share trading &usiness or lac) of afforda&le money to in*est in the share
mar)et.
• In which company you have a Demat Account?

Karvy
India infoline
Religare
Unicon

Reliance Money [ ] Infoline [ ]

Religare [ ] Karvy [ ]

Unicon [ ] Others [ ]

In this a&o*e diagram# (e see that out of 13 people sample size# 02 no. of customers ha*ing their
demat account opened in Kar*y (hile 03 num&er of customers ha*ing their demat account (ith
India Infoline. Customers ha*ing demat account (ith Religare is counted as @ from the (hole
sample size. Only 1 num&er of customers ha*e engaged in 7nicon under (hich demat account is
opened.
• What is the most important reason for not investing in share trading?

Enjoy inVeSting in otherS

45%

ItS benefitS are not enough

to driVe you for inVeStment

Lack of knowledge about

Share trading actiVitieS

Lack of knowledge about share trading activities [ ]

Enjoy investing in others [ ]

Its benefits are not enough to drive you for investment [ ]

From the a&o*e mentioned diagram# (e are a&le to understand that 41% of the customers are
(illing to enjoy in*esting in others li)e life insurance# Mutual fund ser*ices# IFO etc. Apart from
this 28% of the customers do not prefer share trading in*estment &ecause of they percei*e
that the &enefits are not enough to dri*e you for in*estment and rest 2@% of the customers
ha*ing lac) of perfect )no(ledge a&out share trading acti*ities.

Reliance Money [ ] Infoline [ ]

Religare [ ] Karvy [ ]

Unicon [ ] Others [ ]

With the help of customer sur*ey# (e find that customer choices and preferences depends not
only single company. Some customers ha*e preferred for in*estment at least t(o companies
due to the fluctuation in the share mar)et. In the a&o*e diagram# (e are a&le to )no( that >1%
of the e8isting customers also interested in Reliance Money. While 24% of the customers ha*e
also create interest in Kar*y# 23% are in India Infoline (hile only >% of the e8isting customers
are interested in Shriram insight for share trading in*estment.

• Do you like Karvy brokerage Demat Account?

Yes

NO

Yes [ ] No [ ]
In the a&o*e diagram# (e see that 41% of the (hole customers li)e Kar*y &ro)erage Demat
account as per their o(n perception or &rand loyalty (hile other >1% of the e8isting customers
prefer other companies demat account as per their *ie( of interest.

• According to you which are the most suitable stage to invest in share trading activities?

Young unmarried stage

Young married children

stage
Married with older
children stage
Pre(retirement stage

Young unmarried stage [ ]

Young married children stage [ ]

Married with older children stage [ ]

Pre-retirement stage [ ]
As per the a&o*e mentioned pie chart# it is clear to )no( that 11% of the customers are said that
young unmarried stage is the &est suita&le stage to in*est money in the share mar)et. While the
other 2@% out the (hole sample size said that young married children stage are the &est
opportunity stage to ma)e in*estment in the share mar)et and only 03% preferences goes to
married (ith older children stage and 8% comes under the pre-retirement stage.

• What is your opinion regarding the stock broking services provided by Karvy?

)ood
*verage
Poor
E+cellent

Is it
Good [ ] Average [ ] Poor [ ] Excellent [ ]
As per the above figure, we see that out of 100 percent, 45% of the customers are in favour of
karvy stock broking services and they categories its services facility in good range while 35%
categories karvy stock broking services in an average. Only 14% of the customers ranked
karvy’s facility in poor range and rest 6% said that karvy provide excellent stock broking
services.

How much you are in support of demat account AMC charges applied by Karvy?

)ood
*verage
Poor
E+cellent

Is it
Good [ ] Average [ ] Poor [ ] Excellent [ ]

As per the above diagram, we see that most of the customers have given poor ranking on the
basis of Demat A/C AMC charge applied by Karvy because it is much higher than its
competitors. Approximate 44% of the customers opined poor support regarding AMC charge
facilitated by Karvy. Apart from it, 32% of the customers have ranked Karvy in an average
regarding AMC charges and 24% said that Kar*y,s demat account AMC charges is good in some
circumstances.

• What is your opinion relating to the rate of interest of margin funding facility of Karvy?

Good
Average
Poor
4th Qtr

Is it
Good [ ] Average [ ] Poor [ ] Excellent [ ]

In the a&o*e figure# (e see that 41% of the customers said that the Kar*y is good to pro*ide
margin funding facility to them. While 44% of the customers has gi*en a*erage to Kar*y
regarding margin funding facility. Only 4% of the customers ran)ed poor on the &asis of this
facility pro*ided.
Good
Average
Poor

Is it
Good [ ] Average [ ] Poor [ ] Excellent [ ]

In the a&o*e figure# (e mentioned that appro8imate 43% of the customersare dissatisfied
regarding charged applied during opening demat account and they ran)ed )ar*y as poor on the
&asis of charges applied for opening demat account. A little portion of the customers ran)ed
)ar*y good as 21% and 01% of the customers ha*e gi*en a*erage ran)ing as compared to their
competitors.
FINDINGS

After conducting research through applying questionnaire and personal interview I reached at
a particular point. The major findings about related information of Karvy are described as
below:-

• People think that share trading is the best way to invest money in the share
market to increase profit margin within a short period. They are aware of
the fact and realizing its importance. The company should try to expand and
build up its infrastructure because there is a large potential for share trading
in India as guidelines provided by SEBI.

• In a single roof, we found that Karvy Stock Broking Ltd. is not only
facilitating stock broking services to their customer but also different other
financial services are being provided to the customer such as Mutual fund,
Insurance, Commodities, dP, Merchant & Inv. Banking, PMS etc.

• The financial product of KSBL has good credibility as compared to its

competitors in the Burdwan town (WB). The objective of the company is
not only to facilitate better services to the customers but also to built-up long
term mutual relationship with them.

• The entrance of private players will increase the competition and it would be a
tough task to secure a good position in the market. In this tough period, it is
necessary for the company to adopt the best market strategy in order to
capture the large market share as well as potential customers against their
rivals firms.

• With the help of above pie chart, we can easily access that 24% from the
whole customers should preferred Karvy for investment in share trading
activities and 70% of the customers having their own demat account
in Burdwan town (West Bengal).

• With the help of applying chi-square test (χ2), we are able to understand that
Karvy Stock Broking Ltd provide specific services as compared to its
competitors.

CHAPTER (

CONCLUSION

While doing my summer internship program I came to a conclusion that this training
has helped me much in getting the thorough knowledge about some of the stock broking
companies, how these companies are competing against each other for getting the more
market share, how they are applying different marketing strategies to attract customers and
making them satisfied.
I came to know about the demat account, its benefits, how does it provides services to
the customers of which I was totally ignorant when I started my project.

I gathered much more knowledge about Karvy Stock Broking Ltd. its services, its
strategies, and how every employees of it work hard to achieve the organizational goal i.e.
achieve the maximum market share through customer satisfaction.

• One thing that I noticed during my field work that many people of burdwan are
not much more awared about the various financial products and services of Karvy
which had to be there. They are ignorant about demat account and lack of
knowledge and information about it scared them of investing money in share market.
So to generate awareness among them advertising campaign can result in fruitful
results. Only a limited percentage of people are enjoying investing money in share
market in Burdwan.

• Lastly and not the least as a coin has two sides, Karvy has favorable and
unfavorable aspects. The favorable aspect is that it provides lot of benefits to its
customers which some of its competitors fail to provide and again less awareness about it
among people is its negative side which hinders them to invest their fund confidently.

RECOMMENDATIONS

Some of my recommendations are summarized below as follows:-

• It was observed that the most vital problem spotted is of ignorance.

Investors should be made aware of the benefits. Nobody will invest until and unless
he is fully convinced. Investors should be made to realize that ignorance is no longer
bliss and what they are losing by not investing.
• It is necessary for a growing company like Karvy to adopt some
promotional tools to make it present before the willing investors of the country. Many
people who are interested to invest in the share market but cannot rely upon Karvy
because of its less popularity among the general public.

• Infrastructure of a company plays a vital role for attracting customers from the
market. From this side also, the Karvy has to improve more in order to be caught up in
the eye of the customers.

• For better service providing Karvy should have to increase the number of
terminals so that maximum no. of transaction can be executed in a short span of time
and thus it would help in increasing the customer’s satisfaction.

• due to higher AMC charges and demat account opening charges, most of the customers
are allowed to choose another companies rather than Karvy. So, it is necessary for the
company to evaluate market condition and based on that, take appropriate steps in
order to attract the potential customers through providing low charges for opening of
demat account.

• As I have noticed in the Burdwan branch of karvy, the work load upon the
employees is much than it should have to be. So, in order to facilitate the work in a
convenient and easier way more number of employees should have to be appointed at that
branch.

BIBLIOGRAPHY

• Books and manuals:-

• Philip Kotler, Kevin Keller, Abraham Koshy, Mithileshwar Jha, Marketing

Management, A south asian perspective 13th edition
• Kothari# C.R.# Research Methodology :2334 edn.;# Ne( Age International
:p;Ltd.
• Journals:
Kar*y Finapolis

• Websites:-

(((.)ar*y.com

(((.religaresecurities.com

(((.indiainfoline.com

(((.shriraminsight.com

(((.reliancemoney.com

(((.uniconindia.in

(((.)ota)securities.com

(((.&seindia.com

(((.nseindia.com

(((.se&i.go*.in
www.moneycontrol.com

ANNEXURES AND @UESTIONNAIRE

@UESTIONNAIRE

:This research is done for educational purpose. There is no financial moti*e.;

NameH
AgeH
OccupationH
Mo&ile noH
• Are you employedQ

Yes Z [ No Z [
• Have you invested / are you interested to invest in share trading?

Yes [ ] No [ ]

• Do you have a Demat Account?

Yes [ ] No [ ]

• In which company you have a Demat Account?

Reliance Money [ ] Infoline [ ]

Religare [ ] Karvy [ ]

Unicon [ ] Others [ ]

• What is the most important reason for not investing in share trading?

Lack of knowledge about share trading activities [ ]

Enjoy investing in others [ ]

Its benefits are not enough to drive you for investment [ ]

• Any other company whose service you like?

Reliance Money [ ] Infoline [ ]

Religare [ ] Karvy [ ]

Unicon [ ] Others [ ]
• Do you like Karvy brokerage Demat Account?

Yes [ ] No [ ]

• According to you which are the most suitable stage to invest in share trading activities?

Young unmarried stage [ ]

Young married children stage [ ]

Married with older children stage [ ]

Pre-retirement stage [ ]

• What is your opinion regarding the stock broking services provided by Karvy?

Is it
Good [ ] Average [ ] Poor [ ] Excellent [ ]

• How much you are in support of demat account AMC charges applied by Karvy?

Is it
Good [ ] Average [ ] Poor [ ] Excellent [ ]

• What is your opinion relating to the rate of interest of margin funding facility of Karvy?

Is it
Good [ ] Average [ ] Poor [ ] Excellent [ ]
• How much you are in favor of demat account opening charge for share trading purpose?

Is it
Good [ ] Average [ ] Poor [ ] Excellent [ ]