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

Supervisor :MR RAJESH SHARMA

SUBMITTED BY
KARANDEEP SINGH
MBA 2015-2017
ROLL NO:1521063

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 of Karvy Stock Broking Ltd. And Its Competitors Regarding Demat Account & Share
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 Karvy Stock Broking Ltd.
And Its Competitors Regarding Demat Account & Share Trading --- A Comparative Overview
at Karvy Stock Broking Limited is a bonafide record of work done by Mr. Karandeep Singh, and
submitted in partial fulfillment of the requirements of MBA program of Global Institute of
Management, Amritsar

prof Rajesh Sharma

Lecturer
GIM Amritsar

DECLARATION

I hereby declare that the project report titled Strategic Approach of Karvy Stock
Broking Ltd. And Its Competitors Regarding Demat Account & Share Trading---A
Comparative Overview is a genuine research work done by me and it has not been published
anywhere earlier.

Karandeep Singh
G.I.M.

ACKNOWLEDGEMENT

Sometimes words fall short to show gratitude, the same happened with me during this
project. The immense help and support received from Karvy Stock Broking Limited
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 provided me with the necessary information and his valuable suggestion
and comments on bringing out this report in the best possible way.

I also thank Mr Rajesh Sharma, faculty guide, GIM Amritsar 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
1

Topic

Page Number
11-12

CHAPTER 1

11-21

Industry Profile

22-40

Company Profile
4

41-42

Background and inspection of the company

42-46

Nature and business carried

47

Vision,Mission and Quality Policy

48-51

Products and services

52

Area of Operation-global national and regional

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

71

intrepretation

23

Questionaire

72-76

24

Finding of the study

77

25

CHAPTER 5

78

26

Conclusion

78

27

Recommendations

79

28

Bibliography

80

PREFACE

Private sector is one of the fastest growing sectors in the country. After the liberalization
the Private industry still holds vast opportunities for young and experienced 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, wealth management, gold coins, money changing, money transfers and the others.
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
2. Demat
3. Mutual Funds
4. IPO
5. Commodity
6. Forex
7. Gold

EXECUTIVE SUMMARY

This project has been a great experience for me and at the same time it gave me enough
scope to implement my analytical ability. Stock Broking leading industry which is basically my
concern industry around which my project has to be revolved is really a very complex industry.
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 based on what I learned at Karvy Stock Broking Ltd. One can have a brief
knowledge about demat and share trading and all its basics through the project. Apart from it I
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 even a layman could understand. All the datas have been well analyzed with the
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 Its 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
Ltd. but also gained another Companys share trading activities. The practical knowledge 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 companys 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 Amsterdam. Even before that brokers are said to have existed in France dealing with
government securities. The Amsterdam Stock Exchange was involved in buying and selling of
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. Wall Street, as it was called, became the hub of brokerage activities. Earlier stock
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 buying and selling transaction takes is determined by the market forces (i.e.
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. Ltd. enjoys high investor confidence and there is an anticipation of an upward
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 exchanges 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 dont 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

Year 1860-61 :

The number of brokers increased to 60

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

Year 1908

"The Calcutta Stock Exchange Association" was formed.

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 Exchange Limited (1982)

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 India Limited (NSEIL).

Government policies during 1980's also played a vital role in the development of the
Indian Stock Markets. There was a sharp increase in number of Exchanges, listed companies as
well as their capital, which is visible from the following table:

Indian Stock Exchange Growth

1946

1961

1971

1975

1980

1985

14

1125

1203

1599

1552

2265

4344

Listed Cos.

1506

2111

2838

3230

3697

6174

Cr. Rs.)

270

753

1812

2614

3973

9723

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 flowchart below describes the types of transactions that can be carried out on the
Indian stock exchanges:

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)

Traditionally, trading in Stock Exchanges in India followed a conventional style where
people used to gather at the Exchange and bids and offers were made by open outcry.
This age-old trading mechanism 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 be bought and sold at any OTC Center across India

Should not be listed anywhere else

Advantages of OTCEI

Greater liquidity and lesser risk of intermediary charges due to widely spread trading
mechanism across India

The screen-based scripless trading ensures transparency and accuracy of prices

Faster settlement and transfer process as compared to other exchanges

Shorter allotment procedure (in case of a new issue) than other exchanges

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 Stock Exchange was incorporated in 1992 by Industrial Development Bank of India,
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 investors and corporate bodies entering into transactions of high value in financial
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

Bombay Stock Exchange is the oldest stock exchange in Asia with a rich heritage, now
spanning three centuries in its 133 years of existence. What is now popularly known as BSE was
established as "The Native Share & 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 and pre-eminent role in the development of the Indian capital market is widely
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 Brse 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 an efficient access to resources. There is perhaps no major corporate in India
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 worldwide. It is an index of 30 stocks representing 12 major sectors. The
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 Brse. 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 of the major stocks on the BSE have gone down.
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 the major stock exchanges in the country. There are other stock exchanges like the
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.

Market Watch - BSE - BSE 200 over a Fortnight

Market Watch - NSE - S&P CNX Nifty over a Fortnight

COMPANY PROFILE

Introduction:

Success is a journey, not a destination. If we look for examples to prove this quote
then we can find many but there is none like that of karvy. Back in the year 1981, five people
created history by establishing karvy and company which is today known as karvy, the largest
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, commitment, enterprise, hard work and team play, learning and
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 first milestone after its first investment in technology. Karvy became a known name
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. Karvy blossomed with the setting up of its first branch at Mumbai during the
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 didnt stopped there, it stepped into corporate finance and investment banking in
the year 1995.

Karvys 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 stepped into the other most happening sector i.e; IT enabled services by establishing its
own BPO units and at a gap of just 1 year it took the path of e-Business through its website
www.karvy.com . 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 PCG(Private Client Group) which looks after its High Networth Individuals .and
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 worlds 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 Indias foremost
financial services provider, karvy. It offers complete Karvys 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 ebusiness through internet through its website: www.karvy.com . Other than it, it also provides its
various services through SMSes.
Karvys 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 theres a offering for
everybodyeveryones 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 todays karvy group, the largest financial intermediary of India. But success
didnt came to karvy at a flow, the hard work and dedication of its workforce made it what it is
todaygradually 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. Indias no.1 registrar & securities transfer agent.
Clientele of Karvy:
Karvys 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

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

convenience to individual and corporate investors. A team of professional and the latest
technological expertise allocated exclusively to our demat division including technological
enhancements like SPEED-e, make our response time quick and our delivery impeccable. A wide
national network makes our efficiencies accessible 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 exchanges electronic system. Subsequently, the BSE too introduced screenbased 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

voice recording system to record all orders placed over the telephone. We will ask for customer
ID details before processing the order. Still, if a dispute arises, the voice recording would be the
final proof for settling the dispute.
Trading Package of Karvy Online
I-Zone
One-Stop Registration for Investment Zone

Karvy online: A single account

Equities & Derivates (NSE / BSE)

Mutual Funds:(All major AMCs)

IPOs & DP services (NSDL/CDSL)

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 +

Your MF transactions in a year (assumedto be valued at Rs. 1,00,000)
Normal Annual Maintenance charges for a Equity Broking +

Then their value will be

Rs. 1,500/Rs. 500/-

DematAccount
Normal Annual Charge for a Commodities Broking Account
Market Price for an elementary health checkup
Subscription to KARVY FinaPolis magazine
Total Value Payable Upfront

Rs. 200/Rs. 1,500/Rs. 300/Rs. 4,000/-

The Value You Pay For

Particulars
You initially pay a Margin deposit of
Annual Maintenance Charges (AMC) for I-Zone +
The remaining money you can use as margin money for your

Value
Rs. 5,000/Rs. 2,400/Rs. 2,600/-

trades is

BACKGROUND AND INSPECTION OF 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
Address

Karvy House, No. 46, 8-2-609/K

Avenue 4, Street No. 1 Banjara Hills

District
State
Pin Code
Tel. No.
Fax No.
Email : mallikarjun.t@karvy.com

Hyderabad
Telangana
500034
+91 40 67162222
+91 40 23001153
Internet : http://www.karvy.com

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 : Investorsqry@dfssl.com

Internet : http://www.dfssl.com

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 preverified 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, they 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/registrars 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 SEBIs 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
investors 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
investors 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 QUALITY 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 Indias 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.
Karvys 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-90s and Karvy was in the forefront educating investors on the advantages
of dematerializing their shares. Today Karvy is among the top 5 Depository Participant 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 company. 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 underlying 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 having 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-stopshop, 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 2016 HELD
AT THE TAJ MAHAL PALACE HOTEL, MUMBAI ON 6TH AUGUST. THE HONBLE
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 & BUSINESS HEAD - STOCK BROKING
RECEIVING AWARDS FROM INDIAS 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 "NSDL STAR

PERFORMER AWARD 2014 FOR HIGHEST ASSET VALUE

MR. SUSHIL SINHA, BUSINESS HEAD, KCTL & MR. SURESH RAVAL, GENERAL
MANAGER, KCTL RECEIVING THE BROKER WITH BEST CORPORATE DESK
FOR COMMODITY BROKING AWARD FROM HONBLE FINANCE MINISTER
THEN - SRI PRANAB MUKERJEE AT THE BLOOMBERG UTV FINANCIAL
LEADERSHIP AWARDS 2011

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

LARGEST E-BROKING HOUSE IN INDIA AWARD AT THE DUN & BRADSTREET
BSE EQUITY BROKING AWARDS 2010

KARVY STOCK BROKING LIMITED

2014
WON THE PRESTIGIOUS "NSDL STAR PERFORMER AWARD 2014 FOR HIGHEST
ASSET VALUE". 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 20, 2014, AT TAJ COROMADEL,
CHENNAI. KARVY HAS WON THIS AWARD CONSECUTIVELY FOR LAST TWO
YEARS.

2010

"LARGEST E-BROKING HOUSE IN INDIA" AT BSE EQUITY BROKING AWARDS

2010 BY DUN & BRADSTREET HELD IN ITC GRAND MARATHA, MUMBAI. THIS
AWARD IS BASED ON THE STUDY CARRIED OUT BY THE WORLDS LEADING
PROVIDER OF BUSINESS INFORMATION, KNOWLEDGE AND INSIGHT, DUN &
BRADSTREET IN ASSOCIATION WITH THE OLDEST STOCK EXCHANGE IN
INDIA, THE BOMBAY STOCK EXCHANGE.

THE BSE-D&B EQUITY 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.

2007
BAGGED ACE AWARD BY RECEIVING THE COVETED ANNUAL AWARD FOR 2006
FOR "BEST 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.

2007
"AMITY CORPORATE EXCELLENCE" 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.

2006
ISTD "VIVEKANANDA NATIONAL AWARD" FOR EXCELLENCE IN HRD &
TRAINING

2004
"BEST DEPOSITORY PARTICIPANT IN THE COUNTRY" AWARD

KARVY COMTRADE LIMITED

2014
WON THE PRESTIGIOUS ZEE BUSINESS AWARD FOR THE "BEST AGRI.
ANALYST" 2014 IN THE FIFTH EDITION OF INDIAS BEST MARKET ANALYST
AWARDS ON SATURDAY, 13TH DEC. 2014 AT THE LALIT IN MUMBAI.

2011
AWARDED THE "BROKER WITH BEST CORPORATE DESK FOR COMMODITY
BROKING" AT THE PRESTIGIOUS BLOOMBERG UTV FINANCIAL LEADERSHIP
AWARDS 2011 HELD IN HOTEL TAJ LANDSEND, MUMBAI. HONBLE 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 & FINANCIAL CONSULTANTS.

BLOOMBERG UTV FINANCIAL LEADERSHIP AWARDS HAVE BEEN INSTITUTED

TO ACKNOWLEDGE THE CONTRIBUTION OF THE COUNTRYS FINANCIAL
CHAMPIONS FOR EXTRAORDINARY WORK DONE IN FINANCIAL SECTOR. THIS
AWARD IS A REFLECTION OF KARVY COMTRADE - CORPORATE DESKS
UNPARALLELED STRENGTHS IN PROVIDING UNIQUE RISK MANAGEMENT
STRATEGIES AND HEDGING CALCULATORS FOR CORPORATES. KARVY
COMTRADES 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.

2011
ADJUDGED AS THE "BEST ANALYST IN BASE METAL CATEGORY" AT THE
PRESTIGIOUS "BEST MARKET ANALYSTS AWARDS 2011" BY ZEE BUSINESS IN
ASSOCIATION WITH NCDEX (NATIONAL COMMODITY & 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 INDIAS LEADING FINANCIAL EXPERTS IN
EMPOWERING THE RETAIL INVESTORS. THE NOMINATIONS FOR THE AWARDS
WERE INVITED FROM COMMODITIES & 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 2010 TO DECEMBER 2010.

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 competitors behavior? Many
factors shape a competitors 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 competitors
strength and weaknesses.
In general, a company should monitor three variables when analyzing competitors:

Share of market: the competitors 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 competitors objectiveswhat does each seek in the marketplace? What is each
competitors strategy? What are various competitors strength and weaknesses, and how will
each react to actions the company might take?

Determining Competitors 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 competitors 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 competitors cost-reducing manufacturing breakthrough than to
the same competitors advertising increase.

Identifying Competitors Strategies: The more that one firms resembles another firms
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 Competitors Strength and Weaknesses: Marketers need to assess each

competitors 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
competitors 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 companys 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 companys competitiveness.

Estimating Competitors Reactions: next, the company wants to know: what will our
competitors do? A competitors 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
competitors 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 competitors 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 companys 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 heavy
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 its 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.
Valuable

Not Valuable

Vulnerable
These customers are profitable

Non Vulnerable
These customers are loyal and

but not completely happy with

profitable. Dont take them for

the company. Find out and

granted but maintain margins

address their sources of

and reap the benefits of their

vulnerability to retain them.

These customers are likely to

satisfaction.
These unprofitable customers

defect. Let them go or even

are happy. Try to make them

encourage their 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 companys strength/weaknesses and opportunity and threats. Companys
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 companys 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 organisations

present strengths, especially as they relate to the issues we presently confronting?

Weaknesses (negative internal factors): what are our organizations 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)
Weaknesses

(External / Positive)
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. Its even more unattractive if its 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 buyers growing bargaining power: A segment is unattractive if buyers

possess strong or growing bargaining power. The rise of retail giants such as WalMart has led some analysts to conclude that the potential profitability of packagedgoods companies will become curtailed. Buyers bargaining power grows when they
become more concentrated or organized, when the product represents a significant
fraction of the buyers 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

companys 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 focus.
During the summer training the volunteer need to find out the corporate strategies of the
running company and The mile stone which the company has covered during its journey. In the
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.

Chapter 4
DATA ANALYSIS AND INTERPRETATION

PERCENTAGE REPRESENTATION OF DEMAT ACCOUNT PREFERENCES BY THE

50 CUSTOMERS SURVEYED:
KARVY STOCK BROKING LTD.
INDIA INFOLINE
RELIANCE MONEY

24%
20%
16%

RELIGARE
UNICON
SHRIRAM
KOTAK

14%
10%
8%
8%

PIE CHART REPRESENTATION OF CUSTOMERS PERFERENECES FOR DEMAT

ACCOUNT IN SHARE TRADING ACTIVITIES:

In the above pie diagram, we see that 24% of the customers prefer for demat account in share
trading activities in Karvy. While, 20% of the customers are in favour of India infoline to prefer
for demat account for the purpose of share trading activities. Apart from this, only 8% customers
of whole sample size are prefer demat account both Shriram and Kotak each.

Are you employed?

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?

Yes
No

In the above pie chart, we see that out of total sample size, 65% of them said that yes they are
interested to invest money in share market while other 35% are not interested to invest money in
share market because of they already engaged in banking and insurance sector to invest money
or they are not employed.

Do you have a Demat Account?

Yes

[ ]

No

[ ]

Do you have demat account?

Yes
NO

In this above pie chart, we see that 70% of the customers having their Demat Account in any
Stock broking Company, while 30% are those persons who have no Demat account due to lack
of knowledge about share trading business or lack of affordable money to invest in the share
market.

 In which company you have a Demat Account?

Karvy
India infoline
Religare
Unicon

Reliance Money

[ ]

Infoline

[ ]

Religare

[ ]

Karvy

[ ]

Unicon

[ ]

Others

[ ]

In this above diagram, we see that out of 50 people sample size, 12 no. of customers having their
demat account opened in Karvy while 10 number of customers having their demat account with
India Infoline. Customers having demat account with Religare is counted as 7 from the whole
sample size. Only 5 number of customers have engaged in Unicon under which 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 above mentioned diagram, we are able to understand that 45% of the customers are
willing to enjoy investing in others like life insurance, Mutual fund services, IPO etc. Apart from
this 28% of the customers do not prefer share trading investment because of they perceive that
the benefits are not enough to drive you for investment and rest 27% of the customers having
lack of perfect knowledge about share trading activities.

Reliance Money

[ ]

Infoline

[ ]

Religare

[ ]

Karvy

[ ]

Unicon

[ ]

Others

[ ]

With the help of customer survey, we find that customer choices and preferences depends not
only single company. Some customers have preferred for investment at least two companies due
to the fluctuation in the share market. In the above diagram, we are able to know that 35% of the
existing customers also interested in Reliance Money. While 26% of the customers have also
create interest in Karvy, 20% are in India Infoline while only 3% of the existing customers are
interested in Shriram insight for share trading investment.

Do you like Karvy brokerage Demat Account?

Yes
No

Yes

[ ]

No

[ ]

In the above diagram, we see that 65% of the whole customers like Karvy brokerage Demat
account as per their own perception or brand loyalty while other 35% of the existing customers
prefer other companies demat account as per their view 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 above mentioned pie chart, it is clear to know that 55% of the customers are said that
young unmarried stage is the best suitable stage to invest money in the share market. While the
other 27% out the whole sample size said that young married children stage are the best
opportunity stage to make investment in the share market and only 10% preferences goes to
married with older children stage and 8% comes under the pre-retirement stage.

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

Good
Average
Poor
Excellent

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
karvys 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?

Good
Average
Poor
Excellent

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 Karvys 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 above figure, we see that 45% of the customers said that the Karvy is good to provide
margin funding facility to them. While 44% of the customers has given average to Karvy
regarding margin funding facility. Only 4% of the customers ranked poor on the basis of this
facility provided.

Good
Average
Poor

Is it
Good

[ ]

Average

[ ]

Poor

[ ]

Excellent

[ ]

In the above figure, we mentioned that approximate 60% of the customersare dissatisfied
regarding charged applied during opening demat account and they ranked karvy as poor on the
basis of charges applied for opening demat account. A little portion of the customers ranked
karvy good as 25% and 15% of the customers have given average ranking 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 (2), we are able to understand that
Karvy Stock Broking Ltd provide specific services as compared to its
competitors.

CHAPTER 5

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 customers 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 (2004 edn.), New Age International

(p)Ltd.

Journals:
Karvy Finapolis

Websites:www.karvy.com
www.religaresecurities.com
www.indiainfoline.com
www.shriraminsight.com
www.reliancemoney.com
www.uniconindia.in
www.kotaksecurities.com
www.bseindia.com
www.nseindia.com
www.sebi.gov.in

www.moneycontrol.com

ANNEXURES AND QUESTIONNAIRE

QUESTIONNAIRE
(This research is done for educational purpose. There is no financial motive.)
Name:
Age:
Occupation:
Mobile no:

Are you employed?

Yes

[ ]

No

[ ]

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

Yes

[ ]

[ ]

Do you have a Demat Account?

Yes

No

[ ]

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

[ ]