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Internship Report




In partial fulfillment for degree of master in business

administasion, Sherwood Business School

Sherwood Business School

Barabanki, Lucknow

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First and foremost I would like to thank KARVY STOCK BROKING LIMITED,

Lucknow for giving me an opportunity to do my internship in their esteemed

organization. My special appreciation extends to the Regional Head Mr. Himanshu

Joshi for his constant encouragement throughout this period. I also extend my gratitude to

my guide at KARVY, Mr. Arpit Tandon, who instructed me with the work procedures

and dealt with us with patience at all times.

This internship would not be complete without the support of our Director

Mr.V.K.Verma, I would also like to thank our Internship Co-ordinators, Mr.Raman

Kumar and Mr. Ritesh Srivastav for their guidance and unflinching support throughout

the phases of my Internship.

I also would like thanks to my friends Mr Parmarth varun and Mr. Prateek Srivastav, for

helping me at all the time.Mr. JayDeep Mishra being my mentor, supported me

throughout my Internship and with whose help I could complete my work efficiently and

effectively. Their consistent help kept me motivated and going.

Last but not the least, my appreciation goes to my family who has stood by my side and

given me moral support all the time.

Thank You!

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1) Scenario of Indian Stock
2) Executive Summary............................................................................5
3) Introduction........................................................................................6
4) Background.........................................................................................6
i) Karvy’s Mission.........................................................................6
ii) Karvy Milestones......................................................................7
iii) KARVY Credo............................................................................8
iv) Quality Policy............................................................................9
5) Achievements.....................................................................................10
6) KARVY Wings......................................................................................11
i) KARVY Stock Broking Limited...................................................14
7) Organization Structure........................................................................15
i) Structure of SME Segment........................................................16
ii) Process.....................................................................................17
8) Product & Services..............................................................................19
i) Products....................................................................................19
(a) Demat Account (I Zone Plus)
(b) Mutual Funds..................................................................19
(c) Insurance........................................................................31
(d) Equities..........................................................................35
(e) Bonds.............................................................................38
(f) Derivatives.....................................................................41

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Scenario of Indian Stock market

The financial scene is worldwide. The crisis had left the stock market in a deep crisis.

It is slowly regaining its breath and there are now investments made all through the

world. Stock brokers as well as general public are making money out of investing in

shares and stocks. The financial trauma that all of us faced are over and the recovery

of the market is now being witnessed. Throughout the world the market is limping

back to its normal trading life, as compared to other financial markets all over the

world, the Indian stock market came back to life quite fast.

The Indian Stock Market is the undisputed leader in the Asia’s market. It has a

reputation among the foreign institutions. During the past few years from the time of

crash in 2004 there have been many swings in the Indian stock market. But, the gains

from the market have been quite modest. The traders have made money by investing

in shares and stocks and have made handsome profits. The rate of inflation in India is

high so the brokers are more interested in selling than in buying stocks. The FDIs

have also reduced considerably and the market has seen a rigorous financial critical


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Now the financial scenario of Indian stock market is on the road to recovery and is

getting back its lost sight. In recent times market is gaining and has reached 17000

points and so is now looking towards a ray of hope. Take your investment seriously

and don’t treat yourself to ups and downs as the bad part has gone. However, be ready

for the good and bad points of the stock market investment.

You should have proper investment guidance as it will work like magic for you if you

are trading shares in share market. You should have all the latest information ready

with you. You need stock quotes, stock updates, daily stock alerts and every other

information related to stock/stocks within your reach. The platform you use should be

definitive in every part. Proficient stock advice from the brokers and the stock

professionals is the information that is must for you.

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This internship report consists of the overall experience of working as a part at KARVY

STOCK BROKING LIMITED. This experience helped me understand the basic

functioning of the Broking House where I was inducted.

My Internship consisted of the On Job Training as A Marketing Executive. The best

learning experience was that I started from the very basics of getting to that position and

not from the position itself. This helped me get useful insight and understanding of

various financial products, the market details about them and the benefits provided by

them to the customers. Emphasis was given in analysis of the investor behavior of the

clients. Another interesting fact was that all these products were suggested to clients not

just based on their market performance and returns, but on the client’s financial condition

as well as their risk taking capacity.

Training sessions were held to give me insights about the various products that KARVY

STOCK BROKING deals in like: Demat accounts and Insurance. Presentations on the

same after self study and analysis were a part of this internship session.

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I provided advice and suggestions to the investors for online trading and which may prove

prudent to them.


KARVY is a premier integrated financial services provider and ranked among the top five

in the country in all its business segments. It services over 16 million individual investors

in various capacities and provides investor services to over 300 corporates, comprising

who is who of Corporate India.

It is a member of all three:-

 National Stock Exchange (NSE)

 Bombay Stock Exchange (BSE)

 Hyderabad Stock Exchange (HSE)

Karvy utilized its experience and superlative expertise to capitalize on its strengths and

better its service, innovate and provide new ones. It diversified in the process and thus

evolved as India’s premier integrated financial service enterprise.

Karvy has been a customer centric company since its inception. It offers a single platform

servicing multiple financial instruments in its bid to offer complete financial solutions to

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the varying needs of both corporate and retail investors, where an extensive range of

services are provided with great volume-management capability.

KARVY covers the entire spectrum of financial services such as Stock broking,

Depository Participants, Distribution of financial products - mutual funds, bonds, fixed

deposit, equities, Insurance Broking, Commodities Broking, Personal Finance Advisory

Services, Merchant Banking & Corporate Finance, placement of equity, IPOs, among

others. Karvy has a professional management team and ranks among the best in

technology, operations and research of various industrial segments.


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The Karvy group was formed in 1983 at Hyderabad, India. Karvy ranks among the

top player in almost all the fields it operates. Karvy Computershare Limited is India’s

largest Registrar and Transfer Agent with a client base of nearly 500 blue chip

corporates, managing over 2 crore accounts. Karvy Stock Brokers Limited, 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 Depositary 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 Brokers is registered as a Broker with IRDA and ranks

among the top 5 insurance agent 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 Services, 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. Over 9,000 highly qualified people staff Karvy.

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Karvy was started by a group of five chartered accountants in 1979. The partners decided

to offer, other than the audit services, value added services like corporate advisory

services to their clients. The first firm in the group, Karvy Consultants Limited was

incorporated on 23rd July, 1983. In a very short period, it became the largest Registrar

and Transfer Agent in India. This business was spun off to form a separate joint venture

with Computershare of Australia, in 2005. Karvy’s foray into stock broking began with

marketing IPOs, in 1993. Within a few years, Karvy began topping the IPO procurement

league tables and it has consistently maintained its position among the top 5. Karvy was

among the first few members of National Stock Exchange, in 1994 and became a member

of The Stock Exchange, Mumbai in 2001. Dematerialization of shares gathered pace in

mid-90s and Karvy was in the forefront educating investors on the advantages of

dematerializing their shares. Today Karvy is among the top 5 Depositary Participant in


While the registry business is a 50:50 Joint Venture with Computershare of Australia, we

have equity participation by ICICI Ventures Limited and Barings Asia Limited, in Karvy

Stock Broking Limited. For a snapshot of our organization structure, please click here.

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Karvy has always believed in adding value to services it offers to clients. A top-notch

research team based in Mumbai and Hyderabad supports its employees to advise clients

on their investment needs. With the information overload today, Karvy’s team of analysts

help investors make the right calls, be it equities, mf, insurance. On a typical working day


• Has more than 25,000 investors visiting our 575 offices

• Publishes / broadcasts at least 50 buy / sell calls

• Attends to 10,000+ telephone calls

• Mails 25,000 envelopes, containing Annual Reports, dividend cheques / advises,

allotment / refund advises

• Executes 150,000+ trades on NSE / BSE

• Executes 50,000 debit / credit in the depositary accounts

Advises 3,000+ clients on the investments in mutual funds.

Karvy Stock Broking Limited is a member of the National Stock Exchange of India and

The Stock Exchange Mumbai. We rank among the top 5 brokers on the NSEI, with over

130,000 trades per day. We began with the aim of serving the small investors – today we

have over 3,50,000 clients trading through us. We are uniquely positioned to offer the best

to you, with over 575 branches, one is located near your office / home. If you prefer to

trade from the comfort of your home or office, our online platform provides the ideal way

to trade. Our laser focused approach to serving the retail investors remains the cornerstone

to our success over the last two decades.

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If you are looking for an easy and convenient channel to trade in the stock markets …

KARVY is your trusted trading services partner. To start trading in equities, you need to

register as a client with us, and you are ready to trade on the premier exchanges of India.

KARVY offers you feature-rich trading accounts with options to trade through any of our

branches or by yourself using our proprietary online trading platform. Our friendly and

qualified staff can assist you in putting through the trades at the branches. Our advise is

backed by a top notch research team. Our 40 strong research team, based in Mumbai and

Hyderabad, generate up to date and dynamic ‘Research Calls’ for our customers and

affiliates in various market segments (Cash and Futures / Options). The calls are issued on

multiple verticals and can be Intra Day Recommendations, Positional Calls and

hedge/arbitrage strategies.

Karvy’s Mission:

“ 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 ”.


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Karvy has traveled a success route over the past 20 years and positioned itself as an

emerging financial service giant in which embeds the confidence and support of enviable

patrons across the financial world. Patrons are also of diversified fields which includes

over 16 million individual investors in various capacities and 300 corporates comprising

the best out of the whole lot .Years of experience of holistic financial services and

expertise in this industry has helped it gain the status it enjoys and cherishes today.


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Following are the system of principles or beliefs followed by Karvy Group.

“Our Clients, Our Focus”

“Clients are the reason for our being”

Personalized service, professional care; pro-activeness are the values that helps KARVY

nurture enduring relationships with their clients.


”None of us is more important than all of us”

Each team member is the face of Karvy. Together they offer diverse services with speed,

accuracy and quality to deliver only one product: excellence. Transparency, co-operation,

invaluable individual contribution for a collective goal, and respect for individual

uniqueness within a corporate whole, is what KARVY aims at.

Responsible Citizenship

“A social balance sheet is as rewarding as a business one.”

As a responsible corporate citizen, KARVY believes that its duty is to foster a better

environment in the society where they live and work. To abide by its norms, and to

behave in a responsible manner towards the environment, are some of its growing

initiatives towards realizing this.

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”Everything else is secondary”

Professional and personal ethics are Karvy’s bedrocks. They take pride in building an

environment that encourages honesty and opportunity to learn from failures than

camouflage them. They insist on consistency between work and actions.



To achieve and retain leadership, Karvy aims for complete customer satisfaction, by

combining its human and technological resources, to provide superior quality financial

services. In the process, Karvy strives to exceed Customer's expectations.

As per the Quality Policy, Karvy will:

• Build in-house processes that will ensure transparent and harmonious relationships

with its clients and investors to provide high quality of services.

• Establish a partner relationship with its investor service agents and vendors that

will help it in keeping up to its commitments to the customers.

• Provide high quality of work life for all its employees and equip them with

adequate knowledge & skills so as to respond to customer's needs.

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• Continue to uphold the values of honesty & integrity and strive to establish

unparalleled standards in business ethics.

• Use state-of-the art information technology in developing new and innovative

financial products and services to meet the changing needs of investors and


• Strive to be a reliable source of value-added financial products, services and

constantly guide the individuals and institutions in making a judicious choice of


• Strive to keep all stake-holders (shareholders, clients, investors, employees,

suppliers and regulatory authorities) proud and satisfied.



 Among the top 5 stock brokers in India (4% of NSE volumes)

 India's No. 1 Registrar & Securities Transfer Agents

 Among the top 3 Depository Participants

 Largest Network of Branches & Business Associates

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 Among top 10 Investment bankers

 Largest Distributor of Financial Products

 Adjudged as one of the top 50 IT uses in India by MIS Asia

 Full Fledged IT driven operations



As discussed earlier, KARVY offers a single platform servicing multiple financial

instruments in its bid to offer complete financial solutions to the varying needs of both

corporate and retail investors. The range of products and services are provided by the

following wings.

This is the flagship company of Karvy Group and it controls the organizational affairs,

channels of progress, work affairs and pioneering business policies. This was the first

business the KARVY group ventured into, but now they have transferred it into a joint

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venture with computer share limited of Australia, the world’s largest registrar. This

company services around 6 lakh customer accounts in a spread of 250 cities/towns in


This wing of Karvy is registered with SEBI as a category 1 merchant banker and is also

recognized as a leading merchant banker of the country. It has built its reputation by

capitalizing the opportunities as and when it comes, be it in corporate consolidations,

mergers and acquisitions or corporate restructuring. Involvement in raising resources for

corporate or government undertaking successfully over the past two decades has given it a

tremendous confidence boost.

This wing of Karvy has traversed wide spaces to tie up with the world’s largest transfer

agent, the leading Australian company Computershare Limited. This company services

more than 75 million shareholders across 7000 clients and makes its presence felt in over

12 countries across 5 continents. It has also entered into a 50-50 joint venture with Karvy.

After transferring completely to this new entity it has tried to enrich the financial services

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industry as a whole. The worldwide network of Computershare helps it to adapt to the

international standards in addition to leveraging the best technologies from all over the


This is a specialist Business Process Outsourcing unit of the Karvy Group. The legacy of

experience in financial services of Karvy Group acts as a big support for entering the

global arena with confidence of delivering the best. This wing offers several models on

the understanding of business needs that are unique and therefore only a customized

service could possibly fit the bill. Their service matrix has permutations and combinations

that create several options to choose from. Its Services meet the most stringent

International standards, be it re-engineering and managing processes or delivering new


Karvy Commodities focuses on taking commodities trading to new dimensions of

reliability and profitability. They have made commodities trading, an essentially age-old

practice, into a sophisticated and scientific investment option. It helps in enabling trade in

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all goods and products of agricultural and mineral origin that include lucrative

commodities like gold and silver and popular items like oil, pulses and cotton through a

well-systematized trading platform.

Karvy Insurance Broking Pvt. Ltd., provides both life and non-life insurance products to

retail individuals, high net-worth clients and corporates. With the opening up of the

insurance sector and entry of a large number of private players in the business, it is in a

position to provide tailor made policies for different segments of customers.



It is undisputable fact that the stock market is unpredictable and volatile, but despite this

KSBL enjoys a high success rate as a wealth management option. Karvy Stock Broking

Limited offers services that are much beyond serving just as a medium for buying and

selling stocks and shares. Instead it provides multi dimensional and multi focused

services. It offers trading facilities for National Stock Exchange, Bombay Stock Exchange

and Hyderabad Stock Exchange and tries to make trading safe to maximum possible

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extent. For this they are assisted by their in depth research team for constant feedback and

sound advices.

The Finapolis is the monthly magazine that is published by this wing. It analyzes the

latest stock market trends and takes a close look at the various investment options and

products available in the market. A weekly report, called Karvy Bazaar Baatein, keeps

people informed on the immediate trends in the stock market.

In addition, the specific industry reports give more comprehensive information on various

industries. It also offers special portfolio analysis packages that provide daily technical

advice on scrips for successful portfolio management. It provides customized advisory

services to help the client make right financial moves which specifically suits their



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There are various departments and segments in KARVY STOCKBROKING LIMITED.

The segment of which I was a part of during my training process is the SME segment.

This segment caters especially to the needs of the SMALL & MEDIUM ENTERPRISES.

Small and Medium Enterprises refers to organizations that are larger than SOHOs (Small

office/Home office) and smaller than the Fortune 1000. An important point to be noted is

that The SME segment is emphasizing more on Mutual Funds instead of equity, insurance

and other products.

This segment concentrates approximately:

60% on Mutual Funds

30% on Equity

10% on Insurance and other products

So far, the performance of this segment has been good and it has been a contributing

factor in increasing the customer base of KARVY STOCK BROKING LIMITED. Thus

plans for opening of SME Segment in other branches are shaping up.

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Sub back
Sub Main MF
HEAD office
dealer dealer desk

Tele Wealth Wealth Tele

Sales Manager Manager Sales




Relates to Back Office

RO - Relationship officer

SRM - Service Relationship Manager

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The process of the entire working of the SME segment takes place in the following


 First the data is collected by the ROs, SRMs, Wealth Managers, Main Dealer and

the Head himself. This is done at all levels so that the data is collected from all the

resources available and is qualitative in terms of conversions.

 Once the data is acquired or sourced it is given to the Tele Marketing or Sales

team. They are expected to achieve a target of 60% through their calls. The main

aim of them is to get to the right client and convince him for a meet.

 Then the Tele callers fix appointments and forward the details of the same to the

ROs i.e. the Relationship Officers.

 Next the ROs visit the client and inform them about the entire products that would

cater to the customer’s needs. His work is not just confined to imparting the

information to the client; moreover he has to extract information from the client as

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well. He has to understand the customer’s needs, risk taking ability and gives the

details to the SRM if the client is prospective.

 Then the SRM meets the prospective clients and catering to the need of them

gathers information regarding the financial details of client, his past investments,

future investment capability etc. and gives it to the Wealth Manager.

 The Wealth Manager then designs the portfolio for the client based on his

analysis, study and advices from the R&D department and closes the deal.

In the whole process mentioned above, there are 4 back office persons, who assist the

segment at all times in various works.

 Main Dealer – Equity Desk

 Sub Dealer – Assistant to Main Dealer

 MF Research - Research on mutual funds

 Sub Back office person – Responsible for sending reports and MIS

Reports are sent weekly for Equity and Mutual Funds and monthly for futures and


This whole process is controlled and managed by the Segment Head.

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DEMAT Account (I ZONE +)

Demat refers to a dematerialised account.

Though the company is under obligation to offer the securities in both physical and

demat mode, you have the choice to receive the securities in either mode.If you wish to

have securities in demat mode, you need to indicate the name of the depository and also

of the depository participant with whom you have depository account in your

application. It is, however desirable that you hold securities in demat form as physical

securities carry the risk of being fake, forged or stolen.

Just as you have to open an account with a bank if you want to save your money, make

cheque payments etc, Nowadays, you need to open a demat account if you want to buy

or sell stocks.


Karvy I-Zone Plus is a brand new comprehensive online

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investment platform launched by KARVY for the discerning clients.

This product provides the requisite advise & resources to clients

for making judicious investments decisions amongst various asset

classes & products, based on specific risk and return profile of the

client as well as on the time horizon for the investments. The

investment advise is provided based on in-depth research

conducted by KARVY.

I-Zone Plus offers the advantage of confident investment

transactions in equities, commodities and currency derivatives,

mutual funds, IPOs of equity shares through a state-of-the-art

online investment platform with fully secure online payment

gateways with multiple banks.


 Advisory service with a comprehensive online investment


Free financial advise on portfolio allocation in various asset


Free online stock-broking and attractive margin funding options

 aily equity market research reports and calls through SMS

Life time free demat account

Free Mutual Fund transactions to an unlimited extent, including

unlimited SIP transactions

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 ccess to research reports on Mutual Funds, IPOs and


Free online commodities broking account

 pplication in IPOs with attractive loan options for applications

Regular portfolio statement for better planned future


Loans against securities

Free subscription of ‘KARVY FinaPolis’ magazine

Provides comprehensive advisory service for smart


 ffers comprehensive product range

Enables transaction in NSE, BSE, MCX and NCDEX

Enables both cash and derivative trading in equities

Enables trading in currency and commodity derivative

 nlimited transactions in Mutual Funds

Enables online application for IPOs

Easy transfer of money through secured online payment

Gateways with multiple banks – ICICI, HDFC, IDBI, Axis, Bank

of Rajasthan

Safe and secure transaction engine.

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Live market news

Quality research help available live on the trading screen

Top analysts providing inputs on strategies and recommendations

SMS Alert facility for tracking investments

Updated information on personal finance through a free subscription of ‘FinaPolis’

Portfolio tracker with quarterly portfolio statement

Seamless integration between bank, broking, MF and DP Accounts

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1. Provides Advisory Service in multiple products.

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2. Uses top quality technology and also gives call center service for their clients and

other investors.

3. Widest network.

Ease in tracking

 Comprehensive net worth statement

 Quarterly investment portfolio 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 to invest profitably

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A Mutual Fund is a form of collective investment that pools money from many

investors, who share common financial goals and invests their money in stocks, bond,

short term money market instruments and/or other securities.

The income earned through these investments and the capital appreciations realized are

shared by its unit holders in proportion to the number of units owned by them. Thus a

Mutual Fund is the most suitable investment for the common man as it offers an

opportunity to invest in a diversified, professionally managed basket of securities at a

relatively low cost.

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The flow chart below describes broadly the working of a mutual fund:

Mutual Fund Operation Flow Chart

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There are many entities involved and the diagram below illustrates the organizational set

up of a mutual fund:

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Open ended Mutual Funds:

It is a type of mutual fund where there are no restrictions on the amount of shares the fund

will issue. If demand is high enough, the fund will continue to issue shares no matter how

many investors there are. Open-end funds also buy back shares when investors wish to

sell. Most of the mutual funds available in the marketplace are open-end funds. Open-end

funds are generally managed actively and are priced according to their net asset value

(NAV). Open-end funds are wide-ranging. Some Open-end funds are more

conservative and provide consistent returns with low risk, and some are more aggressive

in seeking to make capital gains through constant trading.

Close ended Mutual Funds:

When an investment company issues a fixed number of shares in an actively managed

portfolio of securities, it is referred to as close ended mutual funds. The shares are traded

in the market just like common stock. The main difference with closed-end funds is that

market price of the shares is determined by supply and demand and not by net-asset value

(NAV).Its stipulated maturity period ranges from 3 to 15 years.

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I gave suggestions for Mutual Funds based on the following parameters:

 Investment Objective of the client:

Whether the client is looking for long term investment or short, they require high returns

or tax savings etc, had to be analyzed. The investment objective of the client should match

with that of the particular Mutual Fund Scheme.

 Past performance:

The previous returns of the funds mentioned in the investment brochures were seen and

the funds which have performed well and given high returns were preferred and suggested

to clients.

 Consistency in returns:

The returns are not just expected to be high but a consistency should be observed in the

fund’s performance and returns. The previous year return for a particular fund may be

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high but if it is not consistent in its performance then that is a risky deal. Consistent funds

are more suitable for risk averse clients.



Insurance, in law and economics, is a form of risk management primarily used to hedge

against the risk of a contingent loss. Insurance is defined as the equitable transfer of the

risk of a potential loss, from one entity to another, in exchange for a premium.

Insurer, in economics, is the company that sells the insurance.

Insurance rate is a factor used to determine the amount, called the premium, to be

charged for a certain amount of insurance coverage. Risk management, the practice of

appraising and controlling risk, has evolved as a discrete field of study and practice.

Sum Assured:

It is the amount of money an insurance policy guarantees to pay before any bonuses are


Factors included in the calculation of sum assured are:

 Date of birth

 Gender

 Duration

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 Health conditions

 Job profile


Types of Insurance

Non Life/
Life Insurance General

-Whole life
back -Property
-Endowment -Personal
Assurance -Lifestyle
-Pension -Package
-Unit Linked


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Life Insurance:

All policies are not the same. Some give coverage for your lifetime and others cover you

for a specific number of years.

Following are the different types of life insurances:

 Whole life

 Term policy

 Money pack

 Endowment

 Pension plan


General Insurance:

General insurance typically comprises any insurance that is not determined to be life

insurance. It is called property and casualty (P&C) insurance in the U.S. General

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insurance policies, including automobile, accidents and homeowner’s policies, provide

payments depending on the loss from a particular financial event.

Following are the different types of general insurances:

 Property

 Personal

 Lifestyle

 Package




An equity share, commonly referred to as ordinary share, represents the form of fractional

ownership in a business venture.

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Stockholders' equity is often referred to as the book value of the company, and it comes

from two main sources. The first and original source is the money that was originally

invested in the company, along with any additional investments made thereafter.

The second comes from retained earnings that the company is able to accumulate over

time through its operations. In most cases, especially when dealing with older companies

that have been in business for many years, the retained earnings portion is the largest



Broadly there are two factors:

(1) Stock specific

(2) Market specific

The stock-specific factor is related to people’s expectations about the company, its future

earnings capacity, financial health and management, level of technology and marketing


The market specific factor is influenced by the investor’s sentiment towards the stock

market as a whole. This factor depends on the environment rather than the performance of

any particular company.

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Events favorable to an economy, political or regulatory environment like high economic

growth, friendly budget, stable government etc. can fuel euphoria in the investors,

resulting in a boom in the market. On the other hand, unfavorable events like war,

economic crisis, communal riots, minority government etc. depress the market

irrespective of certain companies performing well. However, the effect of market-specific

factor is generally short-term.

Despite ups and downs, price of a stock in the long run gets stabilized based on the stock

specific factors. Therefore, a prudent advice to all investors is to analyze and invest and

not speculate in shares.


There are two methods:

 You may subscribe to issues made by corporates in the primary market. In the
primary market, resources are mobilized by the corporates through fresh public

issues (IPOs) or through private placements.


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 You may purchase shares from the secondary market. To buy and sell securities
you should approach a SEBI registered trading member (broker) of a recognized

stock exchange.


The documents required for opening an account with KARVY are:

 PAN card no.

 Address proof

 Passport size photos

 Cheque (initial one time investment amount)



A Bond is a long term contract under which a borrower agrees to make payments of

interest and principal, on specific dates, to the holders of the bond.

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The organization that sells a bond is known as the issuer. Of course, no one would loan

his or her hard-earned money for nothing. The issuer of a bond must pay the investor

something extra for the privilege of using his or her money. This "extra" comes in the

form of interest payments, which are made at a predetermined rate and schedule

Bonds are known as "fixed-income" securities because the amount of income the bond

will generate each year is "fixed," or set, when the bond is sold. No matter what happens

or who holds the bond, it will generate exactly the same amount of money.

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Non Statutory
Statutory Liquidity
Liquidity Ratio

SLR is the percentage of deposits that has to be invested in certain designated securities.

The current SLR is 25%. Also, in SLR Banking system is very important.

SLR Bonds constitute of:

 Government securities/ Gilt/GOI (govt. of India) Bonds

 SDL( State Development Loans)

 T- Bills (Treasury Bills)

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 Designated SLR Bonds

Non SLR Bonds constitute of:

Public sector units bonds like:

 IRFC (Indian Railway Finance Corporation)

 Power Finance Corporation


 Bank Bonds

 State Guarantee Bonds



As the name suggests, derivative is a financial instrument that offers a return based on the

return of some other underlying asset. In this sense, its return is derived from another


The definition states, a derivative's performance is based on the performance of an

underlying asset. This underlying asset is often referred to simply as the underlying. It

trades in a market in which buyers and sellers meet and decide on a price; the seller then

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delivers the asset to the buyer and receives payment. The price for immediate purchase of

the underlying asset is called the cash price or spot price.

A derivative also has a defined and limited life: A derivative contract initiates on a certain

date and terminates on a later date. Often the derivative's payoff is determined and/or

made on the expiration date, although that is not always the case. In accordance with the

usual rules of law, a derivative contract is an agreement between two parties in which

each does something for the other. In other words, no money need change hands up front.

Types of Derivatives

• Over-the-counter (OTC) derivatives are contracts that are traded (and privately

negotiated) directly between two parties, without going through an exchange or

other intermediary. Products such as swaps, forward rate agreements, and exotic

options are almost always traded in this way. The OTC derivatives market is

huge. According to the Bank for International Settlements, the total outstanding

notional amount is USD 298 trillion.

• Exchange-traded derivatives are those derivatives products that are traded via

specialized Derivatives exchanges or other exchanges. A derivatives exchange

acts as an intermediary to all related transactions, and takes Initial margin from

both sides of the trade to act as a guarantee.

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Few Major competitors are:

1. India bulls

2. Indian infoline


4. SSKI Ltd. (Sharekhan)






To get first hand details about them we visited a few stock broking houses and talked

about the financial instruments available with their company, their charges for

investments and the documents required by them.

Followings are the list of the companies we visited:

10. India bulls

11. Indian infoline


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13. SSKI Ltd. (Sharekhan)




17. TATA

Comparative Analysis
1 REACH OVER 200 OVER 640 OVER 200 1160


MARGIN MONEY Rs. 10,000 Rs.5750 Rs. 5000

3.1 DEMAT A/C & TRADING A/C Rs. 520 Rs. 900 Rs. 750 Rs. 375
4 EXPOSURE INTRADAY Depends 12 Times 7 Times 2 Times
Delivery Depends 3 Times 4 Times Depends

5 PMS Rs. 1 LACS Rs 5 LACS Rs 25 LACS Rs 5 LACS

(Self collected Data)

On the basis of the survey 70% peoples are satisfied

with servises of karvy.

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Area……..stock broking

1..what are the account opening charges


(b) treding

(c) commodities

2..brokerage charge



3..Is the margin money compulsory

4..If yes minmum amount

5..What is square off deadline

6..What is exposure limit

7..How much limit is their

8..Do you open offline account you provide instant limit on cheque received or

on the clearance of the cheque

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10..Do you send daily transactions


Working at KARVY STOCKBROKING LIMITED was largely an overwhelming

experience with gaining insights to a number of new things. The On-The Job
experience made it a worthwhile Internship, which gave me a great real time
Industry experience.

All is not the same in real life as we read in books and on net about the
working methods of different divisions and segments. Each segment in an
organization has its own work culture followed by the members and same was
the case with SME segment at Karvy Stock Broking Ltd. I had to put in my own
efforts and take initiative to learn and gain maximum knowledge possible
during this period.

Primarily, the description of my work as a Management Trainee was to assist

the wealth managers by understanding the needs of the individual investors
and corporate houses and expanding the customer base of Karvy- SME
Segment where I interned. The work assigned definitely required awareness
and understanding of the all the financial products Karvy Stockbroking dealt
in. It also required me to know the procedures and documents involved in
purchase of any product by the client. I just had a basic idea of the products
KARVY dealt in prior internship, thus, acquiring knowledge about the same
was very exciting.

There were training sessions held on various financial products like MF,
insurance, and bonds which helped me get more insight in these topics.
Interactive session was held by the Mutual Fund expert, which proved quite

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useful but still Mutual Funds is a vast topic and it is possible to gain full
knowledge about it only after practically dealing in it.

Having knowledge about the product was just the initial step which prepared
me to face the questions asked by the inquisitive clients we targeted. Every
step I had a new lesson to learn.

The whole process started with first hand data collection. For this we visited
the corporate houses in Kormangala as well as collected data from banks,
clubs and other sources. We also collected data from few of our own contacts
that we thought could be useful. Getting the data from corporate houses was
difficult as no one really entertained visitor from stock broking companies for
appointments. Moreover it was difficult to get the contact number of the
finance heads of the companies, but we still managed and managed well.

The next step was tele-calling on the database collected. During telecalling,
we learnt the art of introducing ourselves and the company to the clients. It
taught us how to approach clients and suggest them various investment
options. Our main aim was to convince the prospective clients for
appointment. We learnt that to understand the client’s mood at that point of
time was also important. You had to be polite and confident. If a client wanted
to be called back at a specified time, I did so without fail. No negligence was
tolerated on this part as first impression is the last impression and I didn’t
want to lose out on any prospective client

The time given by the client for the meet was given utmost importance. I and
my colleague tried to reach the meeting place in time so that the client didn’t
have to wait. The entire experience of meeting the clients, explaining them

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the products, and based on the questions asked by us, as well as the client,
analyzing their risk taking capability and investment capacity was a learning
in itself.

After gathering above information about the clients, we used to discuss the
client’s details with the Wealth Managers. Based on their investment
requirement, investment objective, risk taking ability and the investment
capability we would come up with suggestions as to where they should invest
and how much.

If the client had already invested in any of the financial products, we tried
gathering details about the same. If the client had already invested in equities
and wanted to invest in safer investment options, we suggested him to go for
Income scheme in Mutual Funds or Bonds.

There were investors who wanted high returns but didn’t want to take greater
risk. To such investors investments in mutual funds rather than equities was
suggested. Investors wanting to invest for taxes saving purpose were
suggested to invest in Tax Saving Mutual Funds like SBI Magnum Tax Gain,
HDFC tax Benefit Scheme.

I also gave a presentation on the basis of self study and trainings provided to
me on Mutual Funds. This helped me improve my presentation skills and
knowledge about the same. As a student, I have given many presentations
but this one gave me a chance to face the corporate heads as evaluators. The
feedback for the same was good but scope for improvement always remains.

Also the deadlines given to me for completion of assignments and reports

helped me experience real time corporate work pressure. My awareness and

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knowledge on the investment options, which was minimal prior internship has
strengthened and expanded post internship.

Other than working ‘Live’ at the office I also benefited by assignments given
to us such as visiting other competitors of KARVY STOCKBROKING LIMITED
and gathering investment advices from their side for new and budding
investors. Usually for new investors they either suggest Insurance (if the
client doesn’t have one), Mutual Funds or Equities but for long term.

The experience and know-how gained from this internship, has left me in
more compliant form and stature in order to fare better in areas of similar
interest. With an optimistic view towards future, and with the desire to
implement all the knowledge gained, I hereby conclude my report on my
Internship at KARVY STOCKBROKING LIMITED- SME Segment, Lucknow.

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• "Introduction." 17 April. 2007

• "History." 15 April. 2007

• Milestone." 14 April. 2007

• "Achievements." 12 April. 2007

• "Karvy group of Companies." 15 April. 2007

• "Stock Broking Service." 2 May. 2007

• "Depository Participants." 3 May. 2007

• "Distribution Of Financial Products." 5 May.


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• "Advisory Services." 2 May. 2007

• "Private Client Group." 1 May. 2007

• "Karvy Alliance." 12 April. 2007

• "Quality Policy." 12 April. 2007

• "Mutual Funds." 13 April. 2007

• "Mutual Funds." 13 April. 2007

• "Mutual Funds." 13 April. 2007

• "Bonds." 2 May. 2007

• "Insurance." 3 May. 2007

• "Insurance." 3 May. 2007

• "Derivatives." 2 May. 2007

• "Equity." 2 May. 2007