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Karvy Stock Broking Ltd, Bijapur

DECLARATION

I hereby declare that this project report is genuine & bonafied has been prepared by me Investment behavior of individual investor in Karvy Stock Broking Ltd, Bijapur.

The present work is original & the conclusion drawn is based on the information collected by myself.

I also hereby declare that this project report has not been submitted at anytime to any other university or institute for any degree

Date :

Place : Bijapur

Dasharath. M. Shirashyad

. B L D E As A S Patil College of MBA Programme, Bijapur Page 1

Karvy Stock Broking Ltd, Bijapur

ACKNOWLEDGEMENT

I express my sincere thanks to Prof. Mr. Akash.Matapathi, A.S.Patil College Of Commerce M.B.A Programme (Autonomous), Bijapur, for his valuable support to prepare this report and to execute management thesis.

I wish to take this opportunity to express my deep sense of my gratitude to Mr. Shashidhar Kagal. & Sayed Mehboob Baba.sir for his valuable guidance endeavor. He has been constant source of inspiration & I sincerely thank him for his suggestions & help to prepare this report. Finally its my foremost duty to thank my entire respondents who have helped me to complete my field work, without which this project would have not been possible.

And I specially thanks to my parents & friend for helped for me in complete of this project.

. B L D E As A S Patil College of MBA Programme, Bijapur Page 2

Karvy Stock Broking Ltd, Bijapur

EXECUTIVE SUMMARY
The Executive Summary briefly describes the background of the study, the need and importance of the study also included in this chapter is statement of to find out the investment behavior of individual investor in Karvy Stock Broking Ltd, Bijapur.

The purpose here is to know, the extent of benefit of this study to the company. The methodology used for the survey is stated and the conclusion is made. The benefits from the research are also given here.

Methodology used by the researcher involves the survey method. The sample technique used is Random sampling and sample size for the survey is 50. The company profile and history and finally the tools used for data analysis are given.

The conclusion is made in such a way as to match the objectives and analysis. Implications are also given which briefs about who benefits from the study. Finally suggestions are mentioned for further research. Lastly the annexure contains a copy of questionnaire, bibliography and other tools used for the research.

. B L D E As A S Patil College of MBA Programme, Bijapur Page 3

Karvy Stock Broking Ltd, Bijapur

Contents
Chapter, No. 1 EXECUTIVE SUMMARY 2 3 4 5 6 7 8 9 INTRODUCTION COMPANY PROFILE FINANCIAL FINAPOLICE SERVICES AT KARVY Chapter Name Page No.

RESERCH METHODOLOGY FINDINGS SUGGESTIONS CONCLUSION BIBLIOGRAPHY

10

QUESTIONNAIRE

. B L D E As A S Patil College of MBA Programme, Bijapur Page 4

Karvy Stock Broking Ltd, Bijapur

Chapter 1

INTRODUCTION
INVESTMENT
Investments can be defined as the process of, sacrificing something now for prospect of gaining something later or Investment is the sacrifice of certain present value for the uncertain future reward. An Investment decision is a trade off between risk and return. All investment choices are made at points of time in accordance with the personal investment ends and in contemplation of an uncertain future. Since investment in securities are revocable, investment ends are transient and investment environment is fluid, the reliable bases for reasoned expectations become more and more vague as one conceives of the distant future. Investment in securities will, therefore from time, reappraise and re-evaluate their various investment commitments in the light of new information, changed expectations and ends.

Investment is the employment of funds on assets with the aim of earning income or capital appreciation. Investment has two attributes namely time and risk. Present consumption is sacrificed to get a return in the future. The sacrifice that has to be born in certain the return in the future may be uncertain. This attribute of investment indicates the risk factor. The risk is undertaken with a view to reap some return from the investment.

The problem of surplus gives rise to the question of where to invest. In the past, investment avenues were limited to real estate, scheme of the post office and banks. At present, a wide verity of investment avenues is open to the investors to suit their needs and nature. Knowledge about the different avenues are open to the investors to chose investment intelligently. The required level of return and the risk tolerance level decide . B L D E As A S Patil College of MBA Programme, Bijapur Page 5

Karvy Stock Broking Ltd, Bijapur the choice of investors. The investment alternatives range from financial securities to traditional non-security investment. The financial securities may be negotiable or nonnegotiable.

The negotiable securities are financial securities that are transferable. The negotiable securities may yield variable income or fixed income. Securities like equity shares are variable income securities. Bonds, debentures, Indra Vikas Patra, Kisan Vikas Patra, and money market yield a fixed income. The non-negotiable financial investment as it self suggests is not transferable. This is also know as non-securitized financial investment. Deposit schemes offered by the post office, banks, companies, and non-banking financial companies are of this category. To the economist, investment is the net addition made to the nations capital stock that consists of goods and services that are used in the production process. A net addition to the capital stock means an increase in the buildings, equipments or investment. These capital stocks are used to produce other goods and services.

Investing in various types of assets is an increasing activity that attracts people from all walks of the life irrespective of their occupation, economic status, education and family background. When a person has more money that he requires for current consumption, he would be called as a potential customer. The investor who is having extra cash could invest in securities or in any other assets like gold or real estate or could simply deposit it I bank account. The companies that have extra income may like to invest their money in the extension of the existing firm or undertake venture. All of these activities in a broader sense mean as investment.

. B L D E As A S Patil College of MBA Programme, Bijapur Page 6

Karvy Stock Broking Ltd, Bijapur

There are basically three concepts of investment: 1. Economic investment- That is, an economists definition of investment. 2. Investment in a more general or extended sense, which is used by the common man. 3. Financial investment-means an exchange of financial claims-stock and bonds (which are collectively called securities), real estate etc.

INTERMEDIARIES:
Savings can be invested in a number of investments. However, there is a gap between the potential investors and firms offering different investment avenues. Hence, there is a need of the hour to bring together these potential investors and such investment companies. There are some firms which facilitate bringing together potential investors and investment companies called intermediaries. Intermediaries are institutional or individual agencies who assist in the process of transforming savings into investment.

The major intermediaries in the capital market are: 1. Merchant bankers 2. under-writers 3. Registrars 4. Brokers 5. Depositories 6. collecting agents 7. Advertising agencies 8. Agents 9. Stock brokers and Sub-brokers 10. Mutual funds. . B L D E As A S Patil College of MBA Programme, Bijapur Page 7

Karvy Stock Broking Ltd, Bijapur

Stock exchanges are intricately inter-woven in the fabric of nation economic life. Of all the modern service institutions, stock exchanges are perhaps the most crucial agent and facilitators of entrepreneurial progress. After the individual revolution, as the size of business enterprises grew, it was no longer possible for proprietors or even partnership to raise large amount of money required for undertaking entrepreneurial ventures, such huge requirement of capital could only met by the participation of very large number of investors, there number running into hundreds, thousands and millions, depending on the size of the business ventures.

It is not always possible to find buyers of an entire business or even a part of business, just when one wishes to sell it. Similarly, it is not easy for some one with savings, especially with a small amount of savings, to ready find an appropriate business opportunity, or a part there of, for investment. This implies that ownership in business has to be Broken up into a large number of small units, such that each unit may be independently and sold without hampering the business activities as such.

This end is achieved in a modern business through the mechanism of shares. A share represents the smallest recognized fraction of ownership, represented in the form of a certificate, know as the share certificate. The banking up of the total ownership of a business into small units, each unit represented by a shares certificate, enables them to be easily bought and sold. The institution where this buying and selling of shares takes place is called the stock exchange.

By enabling the convertibility of ownership in product market into financial assets namely shares, stock exchange bring together buyers and sellers of fractional ownerships of companies. These activities relating to stock exchanges and its variations are appropriately known as stock market or security market.

. B L D E As A S Patil College of MBA Programme, Bijapur Page 8

Karvy Stock Broking Ltd, Bijapur INVESTMENT CHARACTERISTICS:

All investments are characterized by certain features are:

1. Return: All investors are characterized by the expectation of a return. In fact, investments are made with the primary objectives of deriving a return. The return may be received in the form of yield plus capital appreciation. The difference between the sale price and the purchase price is capital appreciation. The dividend or interest received from the investment is the yield. Different types of investment promise different rates of return. The return from an investment depends upon the nature of the investment, the maturity period and a host of other factors.

2. Risk: Risk is inherent in any investment. This risk may relate to loss of capital, delay in repayment of capital, nonpayment of interest, or variability of returns. While some investments like government securities and bank deposits are almost risk less, others are more risky.

The risk of an investment depends on the following factors:

1. The longer the maturity period, the larger is the risk. 2. The lower the credit worthiness of the borrower, the higher is the risk. 3. The risk varies with the nature of investment. Investments in ownership securities like equity shares carry higher risk compared to investments in debt instruments like debentures and bonds.

3. Safety: The safety of an investment implies the certainty of return of capital without loss of money or time. Safety is another feature which an investor desires for his investments. Every investor expects to get back his capital on maturity without loss and without delay.

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Karvy Stock Broking Ltd, Bijapur 4. Liquidity: An investment which is easily saleable or marketable without loss of money and without loss of time is said to possess liquidity. Some investments like company depends, bank deposits, P.O. Deposits, NSC, NSS etc, are not marketable. Some investment instruments like preference shares and debentures are marketable, but there are no buyers in many cases and hence their liquidity is negligible. Equity shares of companies listed on stock exchanges are easily marketable through the stock exchanges.

INVESTMENT OBJECTIVES:
The main investment objectives are to increase the rate of return and reducing the risk. Other objectives like safety, liquidity, and hedge against inflation can be considered as subsidiary objectives.

A) Return: Investors always expect a good rate of return form their investments. Rate of return could be defined as the total income the investor receives during the holding period stated as a percentage of purchasing price at the beginning of the holding period.

B) Risk: Risk of holding securities is related with the probability of actual return becoming the expected return. The word risk is synonymous with the phrase variability of return. An investment whose rate of return varies widely from period to period is more risky than whose return that does not change much. Every investor likes to reduce risk of his investment by proper combination of different securities.

There are mainly two types of risks they are:

1. Unsystematic risk 2. Systematic risk . B L D E As A S Patil College of MBA Programme, Bijapur Page 10

Karvy Stock Broking Ltd, Bijapur Unsystematic risk arises due to short supply of raw materials, disputes in management etc. It is uncontrollable that is why it is known as Internal risk.

Systematic risks arise due to political, economic, social factors it is also known as controllable risks that is why it is External risk.

INVESTOR V/S SPECULATOR


Investor plans for longer time horizon. Holding period may be from one year to few years whereas speculator plans for very short period. Holding period varies from few days to months.

1. Investor is ready to take moderate risk while speculator is willing to undertake high risk. 2. Investor likes to have moderate rate of return associated with limited risk but speculator likes to have return for assuming high risk. 3. Investor decision considers fundamental factors and evaluates the performance of the company regularly whereas speculator considers the inside information, here say market condition. 4. Investor uses the fund of his own and avoids the borrowed funds while speculator uses the borrowed funds to supplement his personal funds.

GAMBLING AND INVESTMENT

A gamble is usually a very short term investment in a game or chance. Gambling is different from speculation and investment. The time horizon involved in gambling is shorter then speculation and investment. The result are determined by the roll of dice or the turn of card. Secondly, people gamble as a way to entertain themselves, earning income would be the secondary. Thirdly, the risk in gambling is different from the risk of . B L D E As A S Patil College of MBA Programme, Bijapur Page 11

Karvy Stock Broking Ltd, Bijapur the investment. In investment there is an analysis of risk and return. Positive return are expected by the investors. The financial analysis does not reduce the risk proportion involved in gambling.

EARLY HISTORY AND DEVELOPMENTS OF THE INDIAN STOCK MARKETS


The earliest records of security dealings in India were meager and obscure. Towards the close of the 18th century, the East India company was the dominant institution and business in its loan securities used to be transacted. The beginning of 19 th century saw a perceptible increase in the nature of business in corporate stocks and shares. However the main importance to the stock business came in 1856 when the companies act providing for limited liability of members was enacted. This was followed by a period of boom and crisis and formation of organized stock exchanges.

The American civil war (1860-61) resulted in the share mania of 1861-65 during which the number of brokers increased to about 200-250 and they became possessed of great influence, authority and wealth. Like the south sea bubble and tulip mania of the 18th century in Europe, the share mania of 1861-65 caused undesired desolation at the end of the American civil war. Very few companies were solvent in Mumbai. The depression was long and severe, but the share mania had certain lasting effects. The brokers organized an informal association in 1875 which was later on formally established in Mumbai on 3rd December 1887 as society to be called the Native shares and stock brokers association. Expectation of liquid capital and the establishment of a regular market in securities helped to take Mumbai what it is today the chief center of the money and capital markets and the financial capital of India.

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Karvy Stock Broking Ltd, Bijapur The cotton textile industry which established the primacy of Mumbai also contributed to the development of the Ahmedabad share and stock brokers association in 1894. The stock exchanges at Mumbai and Ahmedabad were well set up property organized association of the 20th century, but the Calcutta stock exchange was not so constituted despite the fact that stock business in an organized way had been existing since 1830.

INTER-WAR PERIOD:
On the eve of the worldwar-1, the stock market in India considered of 3 stock exchanges in Mumbai, Calcutta and Ahmedabad as hostilities developed, the import of manufacturers into India stopped almost completely as Europe ceased to produce any manufactured articles except those required for the war. As a result Indian manufacturers were able to penetrate the home market. It was a period of phenomenal prosperity. The stock exchange soon became the centre of attraction for all. Rival stock exchange in Mumbai and Ahmedabad in 1917 and 1920 respectively where formed but could not survive long as they could not obtain official reorganization under the provisions of the Mumbai securities contracts control act 1925. futile attempts to establish stock exchange in madras and northern India were also made.

The boom petered out in 1921 and Indian stock market went through a lean period. The improvements in business conditions and in stock market activity in 1935 were marked by growing public interest in stocks, shares and securities. There was a rapid increase in textile mils and many new plantations companies were floated in south India. To cater to this expanding trade in plantation and mill shares, a stock was organized in madras on 4th September 1937 under the name and style of the Madras stock exchange association (Pvt) Ltd.

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Karvy Stock Broking Ltd, Bijapur WORLD WAR II AND AFTER: A period of unprecedented prosperity to the stock exchanges ushered in world war II. Many new associations were constituted. In Ahmedabad, as many as four new stock exchanges were set up one of another. Similarity in Lahore, which witnessed a grate expansion of monitory income during the war, four new exchanges were established. Calcutta and Delhi had to stock exchanges besides the existing ones. In 1940, to stock exchanges, namely the U.P. stock exchange Ltd. And the nagpur stock exchange Ltd, were establish in Kanpur and nagpur, respectively. In 1944, the Hyderabad stock Ltd. Was incorporated in Hyderabad recognized under the Hyderabad securities contracts control act. A small stock exchange was also set up in Bangalore city.

The mushroom stock exchanges during the war time suffered a total depression. The exchanges in Lahore closed down. Most of the others stock exchanges withered away when they applied to the central government for reorganization under the securities contracts (regulation) act, 1956.only the old established stock exchanges in Mumbai, calutta, Madras, Ahmedabad , Delhi, Hyderabad and Indore were recognized under this act. The Bangalore stock exchange was registered subsequently in 1957 and recognized 1963. Organization of Indian stock exchanges The recognized stock exchanges in India vary from voluntary no-profit making organizations (as in Mumbai, Ahmedabad and Indore) to joint stock companies Ltd by shares (as in Calcutta, Delhi and Bangalore) and companies Ltd by guarantee (as in Madras and Hyderabad) since the rules or articles of association defining the constitution of the organized stock exchanges are approved by the central government. The Mumbai stock exchange was the first to get permanent reorganization followed by Calutta, Delhi, Madras, Ahmedabad, Hyderabad, Indore and Bangalore. At present there are 21 stock exchanges in India (Excluding NSE and OTCEI) the largest being the Bombay stock exchanges (BSE). The prominent ones are Mumbai, Calcutta, Madras, Delhi and Ahmedabad. The overall development and regulation of the securities market has been interested to the Securities Exchange Board of India (SEBI) by an act of parliament in 1992 . B L D E As A S Patil College of MBA Programme, Bijapur Page 14

Karvy Stock Broking Ltd, Bijapur

CAPITAL MARKET: Capital is required to bring a business into existence, to keep it alive and see it growing. Achieving the goal of business requires the performance of such business function namely production, distribution, marketing, research and development all of which involve investment of capital. Further, companies require capital not only for meeting there long term requirements of funds for new projects, modernization, expansion and diversification Programmes but also for covering operational expenses.

Categories of Capital:
1. Long-term capital/ fixed capital: it represents the amount of capital invested in fixed assets. It is a long term investment.

2. Short-term capital/ Working capital: it represent the amount of capital invested in current assets. Current assets are those assets which can be converted in cash within a year or accounting period. Working capital is required for meeting the operating cost of the concern.

3. Export Capital: The amount of capital required for making payment in international trade is called export capital.

The methods of payment in international trade are: Cash with order Open account Bills of exchange Bankers documentary credits.

5. Venture capital: venture capital is the capital invested in highly risky venture or projects. . B L D E As A S Patil College of MBA Programme, Bijapur Page 15

Karvy Stock Broking Ltd, Bijapur

Meaning and Definition of Capital Market: Generally speaking, capital market is the place where in funds are raised by companies for meeting their long term requirements. Capital market is a market for long term capital.

Capital market may be defined as the mechanism which co-operative the demand and supply forces for long term capital. The participant on demand and supply side of this market are financial institution, mutual funds, agents, brokers, dealers, borrowers and lenders.

Components of capital Market:


Broadly speaking, capital market is composed of two segments: The new issue market or primary market The secondary market 1. The new issue market or primary market: in the primary market the existing companies or new companies offer shares/debentures to the public for subscription. The primary market also includes the offer of securities to the existing share holders of the companies on right and bonus basis. In the primary market the companies acquire long term funds for meeting their requirements like project financing, expansion; modernization etc. primary market creates financial claims. In this market the public can only buy the shares. Parties involved in the primary market are the lenders and the barrowers. Merchant bankers, registrars, issue companies, under-writers, bankers to the issue, public financial institutions, mutual funds etc. are the major players in new issue markets. The primary market is made up of two components 80% of the IPO is offered to the public The remaining 20% is offered to firms which already traded to raise additional capital. . B L D E As A S Patil College of MBA Programme, Bijapur Page 16

Karvy Stock Broking Ltd, Bijapur

2. The secondary Market: In the secondary market or stock market old issues are bought and sold. In this market, the public can buy sell securities. This market does not create financial claims. In this market the funds does not flow between barrowers and lenders but fund flow between lenders and others/ buyers of security. The brokers, the investors, mutual funds and the financial institution are the important constituents of the secondary market.

Players in the capital market:


The players in the capital markets are divided in three categories:

1. Companies issuing securities: as per the SEBI guidelines, companies intending to issue securities divided three categories. New companies Existing unlisted companies Existing listed companies a) If a new company satisfies all the following three conditions. It has not completed 12 months of commercial operation. Its audited operative results are not available. It is set up by entrepreneurs with or without track record.

b) Existing closely held or private companies are called existing unlisted companies . c) A company is said to be an existing listed company if its shares are listed in the any one of the recognized stock exchanges.

2. Structure of capital market in India: The structure of Indian capital market has under gone a remarkable transformation over the last four and a half decades and now companies an impressive network of financial institutions and new financial instruments. . B L D E As A S Patil College of MBA Programme, Bijapur Page 17

Karvy Stock Broking Ltd, Bijapur The secondary market has become more sophisticated in response to the varied needs of the investors. Provision of long term credit is entrusted with specialization financial institutions. Of these IDBI, IFCI, UTI,LIC, GIC etc. Constitute the largest segment. The various constitutes of capitals market are: Equity Market Debt Market Government Securities Market Mutual fund schemes

3. Membership: The regulations governing the admission of members and the recognized stock exchanges are uniform in terms of the provisions of securities contracts (regulations) Rules 1956. These statutory rules provide that no person shall be eligible to be elected as a member if he is Less than 21 years of age. Not an Indian citizen. Adjudged bankrupt. Convicted offence involving fraud or dishonesty. Engaged as principal or employee in any business other than that of securities. Member of any other association in India where dealing in securities are carried on. Director or employees of company whose principal business is that of dealing in securities. Members of the exchange entitled to work either as individual entitles, or in partnership, or as representative members transacting business on the floor of the market not in their own name but in the name of the appointing members who assume the market responsibility for the business so transacted. Members are entitled to appoint attorneys to supervise their stock exchange business. Such persons satisfy in all respect the conditions of eligibility prescribed for membership of the exchange and their appointment must be approved by the governing body. . B L D E As A S Patil College of MBA Programme, Bijapur Page 18

Karvy Stock Broking Ltd, Bijapur

The Role of SEBI in Security Market:


The security and exchange board of India, is the national regulatory body for the security market, set up under the security and exchange board of India act, 1992, to protect the interest of investors in securities and promote the development of, and to regulate, the securities market and for matters connected there with or incidental to.

SEBI has its head office in Bombay and it is in process of setting up regional offices in the metropolitan cities of Calcutta, Madras and Delhi. The board of SEBI companies a chairman, two members from the central government representing the ministries of finance and law, one member from the RBI, and two other members appointed by central government.

As per the SEBI act 1992, the powers and functions of the board the regulations of the stock exchanges and other securities market, registration and regulation of the working of stock brokers, sub-brokers, bankers to an issue (a public offer), trusties of trust deeds . the registers to an issue, under writers and such other intermediaries whom may be associated with stock market in any way, promotion and regulation of self regulatory organization, prohibiting fraudulent and unfair trade practices and insider trading in securities markets, regulating substantial acquisition of shares and take over of companies, under writing inspection, conducting inquires and audits of stock exchanges, performing such function and exercising such powers as contained in the provisions of the capital issues act 1947 and the securities contracts (regulations) act, 1956, laving various fees and other charges, conducting necessary research for above purpose and performing such other functions as may be prescribed from time to time.

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Karvy Stock Broking Ltd, Bijapur

INTRODUCTION
KARVY, is a premier integrated financial services provider, and ranked among the top five in the country in all its business segments, services over 16 million individual investors in various capacities, and provides investor services to over 300 corporate, comprising the who is who of Corporate India. 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.

Yugandhar M Ramakrishna M S Ajay Kumar K Kutumba Rao V William Samuel . B L D E As A S Patil College of MBA Programme, Bijapur Page 20

Karvy Stock Broking Ltd, Bijapur

EARLY DAYS OF KARVY


The birth of Karvy was on a 1981. It began with the vision and enterprise of a small group of practicing Chartered Accountants who founded the flagship company Karvy Consultants Limited. They started with consulting and financial accounting automation, and carved inroads into the field of registry and share accounting by 1985. Since then, theyhave utilized their experience and superlative expertise to go from strength to strengthto better their services, to provide new ones, to innovate, diversify and in the process, evolved Karvy as one of Indias premier integrated financial service enterprise. Thus over the last 20 years Karvy has traveled the success route, towards building a reputation as an integrated financial services provider, offering a wide spectrum of services. And they have made this journey by taking the route of quality service, path breaking innovations in service, versatility in service and finally totality in service.

Their highly qualified manpower, cutting-edge technology, comprehensive infrastructure and total customer-focus has secured for us the position of an emerging financial services giant enjoying the confidence and support of an enviable clientele across diverse fields in the financial world.

Their values and vision of attaining total competence in their servicing has served as the building block for creating a great financial enterprise, which stands solid on their fortresses of financial strength - their various companies. . B L D E As A S Patil College of MBA Programme, Bijapur Page 21

Karvy Stock Broking Ltd, Bijapur

With the experience of years of holistic financial servicing behind us and years of complete expertise in the industry to look forward to, they have now emerged as a premier integrated financial services provider. And today, they can look with pride at the fruits of their mastery and experience comprehensive financial services that are competently segregated to service and manage a diverse range of customer requirements.

MILE STONES OF KARVY

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Karvy Stock Broking Ltd, Bijapur

KARVY Clients - ITS Focus


Clients are the reason for their being. Personalized service, professional care; proactiveness are the values that help us nurture enduring relationships with their clients. Respect for the individual Each and every individual is an essential building block of their organization.

They are the kiln that hones individuals to perfection. Be they their employees, shareholders or investors. They do so by upholding their dignity & pride, inculcating trust and achieving a sensitive balance of their professional and personal lives.

TEAMWORK
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, cooperation, invaluable an individual contribution for a collective goal, and respecting individual uniqueness within a corporate whole, is how they deliver again and again.

RESPONSIBLE CITIZENSHIP
A social balance sheet is as rewarding as a business one. As a responsible corporate citizen, their duty is to foster a better environment in the society where they live and work. Abiding by its norms, and behaving responsibly towards the environment, are some of their growing initiatives towards realizing it. . B L D E As A S Patil College of MBA Programme, Bijapur Page 23

Karvy Stock Broking Ltd, Bijapur

INTEGRITY
Everything else is secondary. Professional and personal ethics are their bedrock. They take pride in an environment that enctheirages honesty and the opportunity to learn from failures than camouflage them. They insist on consistency between works and actions.

QUALITY POLICY
To achieve and retain leadership, Karvy shall aim for complete customer satisfaction, by combining its human and technological restheirces, to provide superior quality financial services. In the process, Karvy will strive to exceed Customer's expectations.

QUALITY OBJECTIVES
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 in keeping up 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. 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 clients. Strive to be a reliable stheirce of value-added financial products and services and constantly guide the individuals and institutions in making a judicious choice of same. Strive to keep all stake-holders (shareholders, clients, investors, employees, suppliers and regulatory authorities) proud and satisfied. . B L D E As A S Patil College of MBA Programme, Bijapur Page 24

Karvy Stock Broking Ltd, Bijapur

KARVY ALLIANCE
Karvy Computershare Private Limited is a 50:50 joint venture of Karvy Consultants Limited and Computershare Limited, Australia. Computereshare Limited is world's largest -- and only global -- share registry, and a leading financial market services provider to the global securities industry.

The joint venture with Computershare, reckoned as the largest registrar in the world, servicing over 60 million shareholder accounts for over 7,000 corporations across eleven countries spread across five continents. Computershare manages more than 70 million shareholder accounts for over 13,000 corporations around the world.

Karvy Computershare Private Limited, today, is India's largest Registrar and Share Transfer Agent servicing over 300 corporate and mutual funds and 16 million investors.

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Karvy Stock Broking Ltd, Bijapur

ORGANIZATION CHART KARVY STOCK BROKING, BIJAPUR


Regional Manager

Branch Manager

Demat services &dealer

Insurance

Mutual fund services

Commodity dealer

PAN services

AADHAR services

Branch Casual employee

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Karvy Stock Broking Ltd, Bijapur

FINANCIAL SERVICES AT KARVY FINAPOLIS

KARVY CONSULTANTS LIMITED


As the flagship company of the Karvy Group, Karvy Consultants Limited has always remained at the helm of organizational affairs, pioneering business policies, work ethic and channels of progress.

Having emerged as a leader in the registry business, the first of the businesses that they ventured into, they have now transferred this business into a joint venture with Computershare Limited of Australia, the worlds largest registrar. With the advent of depositories in the Indian capital market and the relationships that they have created in the registry business, they believe that they were best positioned to venture into this activity as a Depository Participant. They were one of the early entrants registered as Depository Participant with NSDL (National Securities Depository Limited), the first Depository in the country and then with CDSL (Central Depository Services Limited). Today, they service over 6 lakhs customer accounts in this business spread across over 250 cities/towns in India and are ranked amongst the largest Depository Participants in the country. With a growing secondary market presence, they have transferred this business to Karvy Stock Broking Limited (KSBL), their associate and a member of NSE, BSE and HSE.

IT enabled services: Their Technology Services division forms the ideal platform to unleash their technology initiatives and make their presence felt on the Internet. Their past achievements include many quality websites designed, developed and deployed by us. . B L D E As A S Patil College of MBA Programme, Bijapur Page 27

Karvy Stock Broking Ltd, Bijapur They also possess their own web hosting facilities with dedicated bandwidth and a stateof-the-art server farm (data center) with services functioning on a variety of operating platforms such as Windows, Solaris, Linux and Unix. The corporate website of the company, www.karvy.com, gives access to indepth information on financial matters including Mutual Funds, IPOs, Fixed Income Schemes, Insurance, Stock Market and much more. A link called Restheirce Center, devoted solely to research conducted by their team of experts on various financial aspects like Sector Research, deals exclusively with in-depth analysis of the key sectors of the Indian economy. Besides, a host of other links like My Portfolio which acts as a personalized and customized financial measure, makes this site extremely informative about investment options, market trends, news as also about their company and each of the services offered here.

KARVY STOCK BROKING LIMITED


Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice, flows freely towards attaining diverse goals of the customer through varied services. Creating a plethora of opportunities for the customer by opening up investment vistas backed by research-based advisory services. Here, growth knows no limits and success recognizes no boundaries. Helping the customer create waves in his portfolio and empowering the investor completely is the ultimate goal.

Member - National Stock Exchange (NSE),The Bombay Stock Exchange (BSE), and The Hyderabad Stock Exchange (HSE).

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. B L D E As A S Patil College of MBA Programme, Bijapur Page 28

Karvy Stock Broking Ltd, Bijapur depth knowledge of market functioning and changing trends, planning with foresight and choosing options with care. This is what they provide in their Stock Broking services.

They offer services that are beyond just a medium for buying and selling stocks and shares. Instead they provide services which are multi dimensional and multi-focused in their scope. There are several advantages in utilizing their Stock Broking services, which are the reasons why it is one of the best in the country. They offer trading on a vast platform ; National Stock Exchange, Bombay Stock Exchange and Hyderabad Stock Exchange. More importantly, they make trading safe to the maximum possible extent, by accounting for several risk factors and planning accordingly. They are assisted in this task by their in-depth research, constant feedback and sound advisory facilities. Their 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 their 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, they publish a monthly magazine 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 clients more informed on the immediate trends in the stock market. In addition, their specific industry reports give comprehensive information on various industries. Besides this, they 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 their portfolio.

. B L D E As A S Patil College of MBA Programme, Bijapur Page 29

Karvy Stock Broking Ltd, Bijapur Stock Broking services are widely networked across India, with the number of trading terminals providing retail stock broking facilities. Its services have increasingly offered customer oriented convenience, which they provide to a spectrum of investors, high-net worth or otherwise, with equal dedication and competence.

But true to their spirit, this success is not their 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 karvy have ensured that the trust of their customers is their biggest returns. Factors such as their success in the Electronic custody business has helped build on their tradition of trust even more. Consequentially their retail client base expanded very fast.

To empower the investor further they have made serious efforts to ensure that their research calls are disseminated systematically to all their stock broking clients through various delivery channels like email, chat, SMS, phone calls etc.

Their foray into commodities broking has been path breaking and they are in the process of converting existing traders in commodities into the more organized mainstream of trading in commodity futures, both as a trading and risk hedging mechanism.

In the future, their focus will be on the emerging businesses and to meet this objective, they have enhanced their manpower and revitalized their 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 . B L D E As A S Patil College of MBA Programme, Bijapur Page 30

Karvy Stock Broking Ltd, Bijapur 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, they are a powerful medium for trading and settlement of dematerialized shares. They 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 their demat division including technological enhancements like SPEED-e, make their response time quick and their delivery impeccable. A wide national network makes their efficiencies accessible to all.

Distribution of Financial Products The paradigm shift from pure selling to knowledge based selling drives the business today. With their wide portfolio offerings, they occupy all segments in the retail financial services industry.

A 1600 team of highly qualified and dedicated professionals drawn from the best of academic and professional backgrounds are committed to maintaining high levels of client service delivery. This has propelled us to a position among the top distributors for equity and debt issues with an estimated market share of 15% in terms of applications mobilized, besides being established as the leading procurer in all public issues.

To further tap the immense growth potential in the capital markets they enhanced the scope of their retail brand, Karvy the Finapolis , thereby providing planning and advisory services to the mass affluent. Here they understand the customer needs and lifestyle in the context of present earnings and provide adequate advisory services that will necessarily help in creating wealth. Judicious planning that is customized to meet the future needs of the customer deliver a service that is exemplary. The market-savvy and the ignorant investors, both find this service very satisfactory. The edge that they have over competition is their portfolio of offerings and their professional expertise. The . B L D E As A S Patil College of MBA Programme, Bijapur Page 31

Karvy Stock Broking Ltd, Bijapur investment planning for each customer is done with an unbiased attitude so that the service is truly customized.

Their monthly magazine, Finapolis, provides up-dated market information on market trends, investment options, opinions etc. Thus empowering the investor to base every financial move on rational thought and prudent analysis and embark on the path to wealth creation.

Advisory Services Under their retail brand Karvy the Finapolis', they deliver advisory services to a cross-section of customers. The service is backed by a team of dedicated and expert professionals with varied experience and background in handling investment portfolios. They are continually engaged in designing the right investment portfolio for each customer according to individual needs and budget considerations with a comprehensive support system that focuses on trading customers' portfolios and providing valuable inputs, monitoring and managing the portfolio through varied technological initiatives. This is made possible by the expertise they have gained in the business over the years. Another venture towards being investor-friendly is the circulation of a monthly magazine called Karvy - the Finapolis'. Covering the latest of market news, trends, investment schemes and research-based opinions from experts in various financial fields.

Private Client Group This specialized division was set up to cater to the high net worth individuals and institutional clients keeping in mind that they require a different kind of financial planning and management that will augment not just existing finances but their life-style as well. Here they follow a hard-nosed business approach with the soft touch of dedicated customer care and personalized attention.

For this purpose they offer a comprehensive and personalized service that encompasses planning and protection of finances, planning of business needs and retirement needs and a host of other services, all provided on a one-to-one basis. . B L D E As A S Patil College of MBA Programme, Bijapur Page 32

Karvy Stock Broking Ltd, Bijapur

Their research reports have been widely appreciated by this segment. The delivery and support modules have been fine tuned by giving their clients access to online portfolio information, constant updates on their portfolios as well as value-added advice on portfolio churning, sector switches etc. The investment recommendation given by their research team in the cash market has enjoyed a high success rate.

KARVY INVESTORS SERVICE LIMITED


Merchant Banking: Recognized as a leading merchant banker in the country, they are registered with SEBI as a Category I merchant banker. This reputation was built by capitalizing on opportunities in corporate consolidations, mergers and acquisitions and corporate restructuring, which have earned us the reputation of a merchant banker. Raising restheirces for corporate or Government Undertaking successfully over the past two decades have given us the confidence to renew their focus in this sector.

Their quality professional team and their work-oriented dedication have propelled us to offer value-added corporate financial services and act as a professional navigator for long term growth of their clients, who include leading corporate, State Governments, foreign institutional investors, public and private sector companies and banks, in Indian and global markets.

They have also emerged as a trailblazer in the arena of relationships, both at the customer and trade levels because of their unshakable integrity, seamless service and innovative solutions that are tuned to meet varied needs. Their team of committed industry specialists, having extensive experience in capital markets, further nurtures this relationship.

. B L D E As A S Patil College of MBA Programme, Bijapur Page 33

Karvy Stock Broking Ltd, Bijapur Their financial advice and assistance in restructuring, divestitures, acquisitions, de-mergers, spin-offs, joint ventures, privatization and takeover defense mechanisms have elevated their relationship with the client to one based on unshakable trust and confidence.

An Investment Banker is total solutions provider as far as any corporate, desirous of mobilising capital, is concerned. The services range from investment research to investor service on the one side and from preparation of offer documents to legal compliances and post issue monitoring on the other. There exists a long lasting relationship between the Issuer Company and the Investment Banker. A "Merchant Banker" could be defined as "An organisation that acts as an intermediary between the issuers and the ultimate purchasers of securities in the primary security market"

Merchant Banker has been defined under the Securities & Exchange Board of India (Merchant Bankers) Rules, 1992 as "any person who is engaged in the business of issue management either by making arrangements regarding selling, buying or

subscribing to securities as manager, consultant, advisor or rendering corporate advisory service in relation to such issue management".

Merchant Banking, as a commercial activity, took shape in India through the management of Public Issues of capital and Loan Syndication. It was originated in 1969 with the setting up of the Merchant Banking Division by ANZ Grindlays Bank. The main service offered at that time to the corporate enterprises by the merchant banks included the management of public issues and some aspects of financial consultancy. The early and mid-seventies witnessed a boom in the growth of merchant banking organisations in the country with various commercial banks, financial institutions, broker's firms entering into the field of merchant banking.

. B L D E As A S Patil College of MBA Programme, Bijapur Page 34

Karvy Stock Broking Ltd, Bijapur KARVY AS AN INVESTMENT BANKER

Karvy is well networked with 200 full-fledged branches and 350 Investor Service Centers with a workforce of over 3500 personnel drawn from various disciplines.

Karvy Investor Services Limited, a SEBI registered Merchant Banker is a 100% subsidiary of Karvy Consultants Limited and is among the top 10 merchant Bankers in India today. The parent Company i.e. Karvy Consultants Limited was founded by a group of professionals in 1982 and today it has evolved as integrated financial services company of repute, offering various financial services to suit every requirement/need of their customers. By virtue of its access to millions of Indian Shareholders, in addition to companies, banks and financial institutions, Karvy has in the process built up a positive reputation with regulatory authorities and other government agencies. Their emphasis on the quality of the services, they offer, has been instrumental in helping us to attain the leadership in the financial services sector.

They have a track record of handling 70 public/rights issues as Merchant Bankers. During the last two years they have handled the share buyback issues of TTK LIG Limited, Sirpur Paper Mills Limited, Bhagyanagar Metals Limited, A V Thomas GroupNelliampathy Tea and Produce Company Limited, Chordia Food Products Limited, Heritage Foods (India) Limited, Titanor Components Ltd, Punjab Communications Limited, etc. to name a few.

They have also handled/are handling the Rights/Public issues of Dhanalakshmi Bank, Dhandapani Finance, Moschip, Karur Vysya Bank, Lux Hosiery Industries Ltd, Sah Petroleums Limited, Paradyne Infotech Limited, Yash Papers Limited, SPL Industries Limited, Provogue (I) Limited, Tulip IT Services Limited, Gati Limited as lead managers to name a few. They have also been appointed as advisor to some of the GOI disinvestments. They have actively marketed bond issues of corporations from the States of Maharashtra, Karnataka & Gujarat and debt issues of all the Financial Institutions like IDBI, ICICI, IFCI, REC, PFC, SIDBI, etc. . B L D E As A S Patil College of MBA Programme, Bijapur Page 35

Karvy Stock Broking Ltd, Bijapur

As an Investment Banker, Karvy provides; Management of Capital Issues Management of Buybacks, Takeovers and Delisting offers Private Placement of Debt and Equity Mergers and Amalgamations Loan Syndication

KARVY COMPUTERSHARE PRIVATE LIMITED


KARVY have traversed wide spaces to tie up with the worlds largest transfer agent, the leading Australian company, Computershare Limited. The company that services more than 75 million shareholders across 7000 corporate clients and makes its presence felt in over 12 countries across 5 continents has entered into a 50-50 joint venture with us.

With its management team completely transferred to this new entity, they will aim to enrich the financial services industry than before. The future holds new arenas of client servicing and contemporary and relevant technologies as they are geared to deliver better value and foster bigger investments in the business. The worldwide network of Computershare will hold us in good stead as they expect to adopt international standards in addition to leveraging the best of technologies from around the world.

Excellence has to be the order of the day when two companies with such similar ideologies of growth, vision and competence, get together.

. B L D E As A S Patil College of MBA Programme, Bijapur Page 36

Karvy Stock Broking Ltd, Bijapur

Mutual Fund Services:


They have attained a position of immense strength as a provider of across-theboard transfer agency services to AMCs, Distributors and Investors.

Nearly 40% of the top-notch AMCs including prestigious clients like Deutsche AMC and UTI swear by the quality and range of services that they offer. Besides providing the entire back office processing, they provide the link between various Mutual Funds and the investor, including services to the distributor, the prime channel in this operation. Carrying the limitless' ideology forward, they have explored new dimensions in every aspect of Mutual Fund servicing right from volume management, cost effective pricing, delivery in the least turnaround time, efficient back-office and front-office operations to customized service. They have been with the AMCs every step of the way, helping them serve their investors better by offering them a diverse and customized range of services. The first to market' approach that is their anthem has earned us the reputation of an innovative service provider with a visionary bent of mind. Their service enhancements such as Karvy Converz', a full-fledged call center, a top-line website (www.karvymfs.com), the m-investor' and many more, creating a galaxy of customer advantages.

. B L D E As A S Patil College of MBA Programme, Bijapur Page 37

Karvy Stock Broking Ltd, Bijapur

Issue Registry:
In their voyage towards becoming the largest transaction-processing house in the Indian Corporate segment, they have mobilized funds for numerous corporate, Karvy has emerged as the largest transaction-processing house for the Indian Corporate sector. With an experience of handling over 700 issues, Karvy today, has the ability to execute voluminous transactions and hard-core expertise in technology applications have gained us the No.1 slot in the business. Karvy is the first Registry Company to receive ISO 9002 certification in India that stands testimony to its stature

Karvy has the backing of skilled human restheirces complemented by requisite technological packages to ensure a faster processing capability. Karvy has the benefit of a good synergy between depositories and registry that enables faster resolution to related customer queries. Apart from its unique investor servicing presence in all the phases of a public Issue, it is actively coordinating with both the main depositories to develop special models to enable the customer to access depository (NSDL, CDSL) services during an IPO.

Their trust-worthy reputation, competent manpower and high-end technology and infrastructure are the solid foundations on which their success is built.

Corporate Shareholder Services:


Karvy has been a customer centric company since its inception. 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 where an extensive range of services are provided with great volume-management capability.

. B L D E As A S Patil College of MBA Programme, Bijapur Page 38

Karvy Stock Broking Ltd, Bijapur Today, Karvy is recognized as a company that can exceed customer expectations which is the reason for the loyalty of customers towards Karvy for all his financial needs. An opinion poll commissioned by The Merchant Banker Update and conducted by the reputed market research agency, MARG revealed that Karvy was considered the Most Admired in the registrar category among financial services companies.

They have grown from being a pure transaction processing business, to one of complete shareholder solutions.

KARVY GLOBLE SERVICE PRIVATE LIMITED


The specialist Business Process Outsourcing unit of the Karvy Group. The legacy of expertise and experience in financial services of the Karvy Group serves us well as they enter the global arena with the confidence of being able to deliver and deliver well.

Here they offer several delivery models on the understanding that business needs 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. Be it in re-engineering and managing processes or delivering new efficiencies, their service meets up to the most stringent of international standards. Their outsourcing models are designed for the global customer and are backed by sound corporate and operations philosophies, and domain expertise. Providing productivity

improvements,operational cost control, cost savings, improved accountability and a whole gamut of other advantages. They operate in the core market segments that have emerging requirements for specialized services. Their wide vertical market coverage includes Banking, Financial and Insurance Services (BFIS), Retail and Merchandising, Leisure and Entertainment, Energy and Utility and Healthcare.

. B L D E As A S Patil College of MBA Programme, Bijapur Page 39

Karvy Stock Broking Ltd, Bijapur Their horizontal offerings do justice to their stance as a comprehensive BPO unit and include a variety of services in Finance and Accounting Outstheircing Operations, Human Restheirce Outstheircing Operations, Research and Analytics Outstheircing Operations and Insurance Back Office Outstheircing Operations.

The finance and accounting function in any business has always been a restheirce and time intensive activity. The advent of computing systems and technology has enhanced the capabilities to handle volumes and reduce processing times; however the need for expert administrative support for this non-core business activity has emerged as a business opportunity for the qualified service providers in this field across the globe

Their services cover the entire spectrum of services ranging from high volume transaction processing to high value financial analysis and reporting.

The team of financial experts at KARVY Global Services is fully conversant with the financial processes and accounting systems and create value by their ability to synergize domain knowledge with processing and technological expertise.

The Finance and Accounting Outsourcing center offers services such as Process Management, End to End Accounting, Taxation and Financial Analysis & Reporting services.

The Process Management COE offerings include Accounts Payable Accounts Receivable Billing / Sales Accounting Purchase Accounting Reconciliations Fixed Assets Inter-company Accounting . B L D E As A S Patil College of MBA Programme, Bijapur Page 40

Karvy Stock Broking Ltd, Bijapur The End to End Accounting COE offerings include Cash Receipts and Payments Bank Receipts and Payments Sales and Sales Returns Purchases and Purchase Returns Jtheirnal Vouchers Trial Balance Financial Statements The Taxation COE offerings include Personal Income Tax Corporate Income Tax Sales and Local Tax (SALT) Costs Segregation

The Financial Analysis and Reporting COE offerings include Financial Statement Analysis Financial Ratio Analysis Ageing Analysis Expense Reporting Periodic Management Information

Head quartered: KARVY Global Services is headquartered at Hyderabad, India and operates from three global delivery centers in Hyderabad.

Their business development offices are located in New York, Chicago and California in United States, Toronto in Canada and London in United Kingdom and Horgen in Switzerland. E-mail us to know how they can serve you.

. B L D E As A S Patil College of MBA Programme, Bijapur Page 41

Karvy Stock Broking Ltd, Bijapur

KARVY COMMTRADE LIMITED


Commodities market, contrary to the beliefs of many people, has been in existence in India through the ages. However the recent attempt by the Government to permit Multi-commodity National levels exchanges has indeed given it, a shot in the arm. As a result two exchanges Multi Commodity Exchange (MCX) and National Commodity and derivatives Exchange (NCDEX) have come into being. These exchanges, by virtue of their high profile promoters and stakeholders, bundle in themselves, online trading facilities, robust surveillance measures and a hassle-free settlement system. The futures contracts available on a wide spectrum of commodities like Gold, Silver, Cotton, Steel, Soya oil, Soya beans, Wheat, Sugar, Channa etc., provide excellent opportunities for hedging the risks of the farmers, importers, exporters, traders and large scale consumers. They also make open an avenue for quality investments in precious metals. The commodities market, as it is not affected by the movements of the stock market or debt market provides tremendous opportunities for better diversification of risk. Realizing this fact, even mutual funds are contemplating of entering into this market.

Karvy Comtrade Limited is another venture of the prestigious Karvy group. With their well established presence in the multifarious facets of the modern Financial services industry from stock broking to registry services, it is indeed a pleasure for us to make foray into the commodities derivatives market which opens yet another door for us to deliver their service to their beloved customers and the investor public at large.

With the high quality infrastructure already in place and a committed Government providing continuous impetus, it is the responsibility of us, the intermediaries to deliver these benefits at the door-steps of their esteemed customers. With their expertise in financial services, existence across the lengths and breadths of the country and an enviable technological edge, they are all set to bring to you, the pleasure of investing in this burgeoning market, which can touch upon the lives of a vast majority of the population from the farmer to the corporate alike. They are confident that the commodity futures can be a good value addition to their portfolio. . B L D E As A S Patil College of MBA Programme, Bijapur Page 42

Karvy Stock Broking Ltd, Bijapur

The company provides investment, advisory and brokerage services in Indian Commodities Markets. And most importantly, they offer a wide reach through their branch network of over 225 branches located across 180 cities.

KARVY INSURECE BROKING PRIVATE LIMITED


At Karvy Insurance Broking Pvt.Ltd., they provide 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 with a large number of private players in the business, they are in a position to provide tailor made policies for different segments of customers. In their journey to emerge as a personal finance advisor, they will be better positioned to leverage their relationships with the product providers and place the requirements of their customers appropriately with the product providers. With Indian markets seeing a sea change, both in terms of investment pattern and attitude of investors, insurance is no more seen as only a tax saving product but also as an investment product. By setting up a separate entity, they would be positioned to provide the best of the products available in this business to their customers.

Their wide national network, spanning the length and breadth of India, further supports these advantages. Further, personalized service is provided here by a dedicated team committed in giving hassle-free service to the clients.

. B L D E As A S Patil College of MBA Programme, Bijapur Page 43

Karvy Stock Broking Ltd, Bijapur

Research methodology
Methodology:

The study is based on the primary and secondary data which are collected through the firms employees and clients of the organization. Data required and collected, primary data is collected through personal interview and secondary data is collected from internet sources, news papers, magazines published by the organization.

Method of analysis:

The data collected from questionnaire were put together in the form of tables and tabulated data are analyzed. Percentage is calculated for each and every table. Analysis and interpretation is done on the bases of primary data.

. B L D E As A S Patil College of MBA Programme, Bijapur Page 44

Karvy Stock Broking Ltd, Bijapur Inference is drawn from the analysis to represent in the form of bar charts. The primary data is diagrammatically represented in the form of bar charts. The summery of findings are recorded based on the analysis.

Need for the study: The study focuses on the investment behavior of individual investors with reference to Karvy stock broking Ltd Bijapur further study rivals the profile of individual investors. The scope of the study:

Topic:
To study the investment behavior of individual have been carried out in Karvy stock broking Ltd Bijapur.

Projects aims to relevant information of Karvy about the nature of the study the method used in the research methodology of the study comprehensive background of the study, the conclusion and suggestions inferred findings.

Objective of the study: To study the investment trend. To study the profile of individual investors. To suggest attracts the individual investors.

Limitation of the study: Only 50 respondents were considered for the sample size. Analysis of the collection from questionnaires be will be made on the assumption that the data provided by the respondent are accurate. Area required for the survey within the Bijapur city. The study is based on the random sampling.

Proposed out comes and benefits of the study . B L D E As A S Patil College of MBA Programme, Bijapur Page 45

Karvy Stock Broking Ltd, Bijapur

The study focus on investment behavior of individual investor in Karvy. And the may get benefited through proper analysis of investors behavior towards the investment opportunity. The individual investors contribute a major share in the capital formation. The company is required to give a due attention to even small investors so that they are attracted to invest their savings. Table No 1 Occupation of Client

Frequen cy Percent Valid BUSINESS MAN PROFESSION ALS GOVT EMPLOYEE STUDENTS OTHERS Total 17 19 7 5 2 50 34.0 38.0 14.0 10.0 4.0 100.0

Valid Percent 34.0 38.0 14.0 10.0 4.0 100.0

Cumulativ e Percent 34.0 72.0 86.0 96.0 100.0

Graph - 1

. B L D E As A S Patil College of MBA Programme, Bijapur Page 46

Karvy Stock Broking Ltd, Bijapur

40

30

Percent
20
38 34

10
14 10

0 BUSINESS MAN PROFESSIONALS GOVT EMPLOYEE STUDENTS OTHERS

OCCUPATION

Interpretation: The above picture shows that 38% of respondents are professionals, 34% respondents are business men, 14% of respondents are govt employees, 10% of respondents are students and rests of 4% are others

. B L D E As A S Patil College of MBA Programme, Bijapur Page 47

Karvy Stock Broking Ltd, Bijapur Table No 2 Monthly Incomes

Valid Up to Rs.5000 Rs.5000 - Rs. 15000 Rs. 15000 - Rs. 25000 Rs.25000 and above Total

Frequen cy Percent 8 16.0 15 19 8 50 30.0 38.0 16.0 100.0

Valid Cumulativ Percent e Percent 16.0 16.0 30.0 38.0 16.0 100.0 46.0 84.0 100.0

Graph - 2
40

30

Percent

20
38

30

10
16 16

0 Up to Rs.5000 Rs.5000 - Rs. 15000 Rs. 15000 - Rs. 25000 Rs.25000 and above

MONTHLY INCOME

Interpretation: The above grape shows that 38% of respondents monthly income lies between Rs.15000 Rs. 25000, 30% respondents monthly income lies between Rs.5000 Rs. 15000, 16% of respondents monthly income is more than Rs.25000, 16% of respondents monthly income is less than Rs 5000. . B L D E As A S Patil College of MBA Programme, Bijapur Page 48

Karvy Stock Broking Ltd, Bijapur

Table No 3 Existence of Karvy Frequenc y 50 Valid Percent 100.0 Cumulative Percent 100.0

Valid

YES

Percent 100.0 Graph - 3

100

80

Percent 60

100
40

20

0 YES

EXISTENCE OF KARVY

Interpretation: The above grape shows that 100% of respondents are aware the existence of Karvy the Finapolis in Bijapur.

. B L D E As A S Patil College of MBA Programme, Bijapur Page 49

Karvy Stock Broking Ltd, Bijapur

Table No 4 Medias through you come

Valid ADS IN TV ADS IN NEWS PAPER WALL DUSPLAYS FRIENDS AND RELATIVES OTHERS Total

Frequen cy Percent 2 4.0 19 5 21 3 50 38.0 10.0 42.0 6.0 100.0

Valid Cumulativ Percent e Percent 4.0 4.0 38.0 10.0 42.0 6.0 100.0 42.0 52.0 94.0 100.0

Graph - 4
50

40

Percent
30

42

20

38

10

10 6 4

0 ADS IN TV ADS IN NEWS PAPER WALL DUSPLAYS FRIENDS AND RELATIVES OTHERS

MEDIAS THROUGH YOU COME

Interpretation: The above grape shows that 42% of respondents come to know about karvy from friends and relatives, 38% are from ads and in news paper, followed by 10% wall display, 6% from other media and 4% ads in TV.

. B L D E As A S Patil College of MBA Programme, Bijapur Page 50

Karvy Stock Broking Ltd, Bijapur

Table No 5 financial services of karvy Frequen cy Percent Valid EQUITY TRADING COMMODITY TRADING MUTUAL FUNDS INSURANCE CONSULTANCY SERVICES IPO SERVICES Total 18 12 10 3 2 5 50 Graph - 5 36.0 24.0 20.0 6.0 4.0 10.0 100.0 Valid Percent 36.0 24.0 20.0 6.0 4.0 10.0 100.0 Cumulativ e Percent 36.0 60.0 80.0 86.0 90.0 100.0

40

30

Percent

20
36

24

10

20

10 6 4

0 EQUITY TRADING COMMODITY TRADING MUTUAL FUNDS INSURANCE CONSULTANCY SERVICES IPO SERVICES

FINANCIAL SERVICES OF KARVY

Interpretation: It is clear from table 5 that the majority of respondents (36%) are known about equity trading; this is followed commodity trading (24%), mutual funds (20%), and IPO service (10%), Insurance (6%). However, 4% of respondent are taking counsultancy services

. B L D E As A S Patil College of MBA Programme, Bijapur Page 51

Karvy Stock Broking Ltd, Bijapur Table No 6 Investment Plan In Future

Valid YES

Frequen cy Percent 50 100.0

Valid Cumulativ Percent e Percent 100.0 100.0

Graph - 6

100

80

Percent 60
100

40

20

0 YES

INVESTMENT PLAN IN FUTURE

Interpretation: It is clear from the above table that 100% of respondents are interested to have an investment plan in future.

. B L D E As A S Patil College of MBA Programme, Bijapur Page 52

Karvy Stock Broking Ltd, Bijapur Table No - 7 Preference of Karvy for Clint Investment

Frequen cy Percent Valid YES 44 88.0 NO 6 12.0 Total 50 100.0

Valid Cumulativ Percent e Percent 88.0 88.0 12.0 100.0 100.0

Graph - 7

100

80

Percent
60

88

40

20

12

0 YES NO

PREFERANCE OF KARVY FOR CLINT INVESTMENT

Interpretation: Graph 7 rivals that 88% of respondents are prefer to investment in Karvy and rest of 12% of respondents wants to invest through other stock brokers.

. B L D E As A S Patil College of MBA Programme, Bijapur Page 53

Karvy Stock Broking Ltd, Bijapur Table No - 8 Types of Investment Plans Freque ncy Percent 5 10.0 17 34.0 7 14.0 7 1 8 2 3 50 14.0 2.0 16.0 4.0 6.0 100.0 Valid Cumulativ Percent e Percent 10.0 10.0 34.0 44.0 14.0 58.0 14.0 2.0 16.0 4.0 6.0 100.0 72.0 74.0 90.0 94.0 100.0

Vali d

FIXED DEPOSIT EQIUTY IPO COMMODITY TRADING GOVT SECURITIES MUTUAL FUNDS INSURANCE OTHERS Total

Graph - 8

40

30

Percent

20
34

10
16 14 10 6 4 2 14

0
FIXED DEPOSIT EQIUTY IPO COMMODITY TRADING GOVT SECURITIES MUTUAL FUNDS INSURANCE OTHERS

TYPES OF INVESTMENT PLANS

Interpretation: It is clear from graph that the majority of respondents (34%) had investment plan in equity, followed by mutual fund (16%), (14%) each in IPO and Commodity trading, 10% in fixed deposit, 6% in others, 4% in insurance and 2% in government securities. . B L D E As A S Patil College of MBA Programme, Bijapur Page 54

Karvy Stock Broking Ltd, Bijapur

Table No - 9 Motivation of Investment

Frequen cy Percent Valid PROVISION OF OLD AGE CAPITAL APPRECIATION CHILDERN EDUCATION TO EARN STABLE AND REGULAR INCOME OTHER Total 6 7 8 27 2 50 Graph - 9
60

Valid Percent 12.0 14.0 16.0 54.0 4.0 100.0

Cumulativ e Percent 12.0 26.0 42.0 96.0 100.0

12.0 14.0 16.0 54.0 4.0 100.0

50

Percent 40

30
54

20

10
12 14 16

0 PROVISION OF OLD AGE CAPITAL APPRECIATION CHILDERN EDUCATION TO EARN STABLE AND REGULAR INCOME OTHER

MOTIVATION OF INVESTMENT

Interpretation: Graph 9 rivals that the majority of respondents (54%) agree that the motive of their investment is to earn stable regular income, followed by children education (16%), capital appreciation (14%), provision of old age (12%) and other motives . B L D E As A S Patil College of MBA Programme, Bijapur Page 55 (4%).

Karvy Stock Broking Ltd, Bijapur Table No - 10 Frequency of Investing

Frequen cy Percent Valid WEEKLY 2 4.0 MONTHLY 17 34.0 QUARTERLY 11 22.0 HALF YEARLY 11 22.0 YEARLY 3 6.0 NOT 6 12.0 INTERESTED Total 50 100.0

Valid Cumulativ Percent e Percent 4.0 4.0 34.0 38.0 22.0 60.0 22.0 82.0 6.0 88.0 12.0 100.0 100.0

Graph - 10
40

30

Percent

20
34

22

22

10

12

6 4

0 WEEKLY MONTHLY QUARTERLY HALF YEARLY YEARLY NOT INTERESTED

FREQUENCY OF INVESTING

Interpretation: Graph 10 defects that the majority of respondents (34%) invests monthly, followed by quarterly and half yearly (22%) each, (6%) yearly, (4%) weekly and (12% of the respondents do not have any investment plan in Karvy.

. B L D E As A S Patil College of MBA Programme, Bijapur Page 56

Karvy Stock Broking Ltd, Bijapur Table No - 11 Holding of Investment

Frequen cy Percent Valid LESS THAN 1 YEAR 1 - 3 YEAR 3 -5 YEAR ABOVE 5 YEAR NOT INTERESTED Total 5 9 17 13 6 50 10.0 18.0 34.0 26.0 12.0 100.0

Valid Percent 10.0 18.0 34.0 26.0 12.0 100.0

Cumulativ e Percent 10.0 28.0 62.0 88.0 100.0

Graph - 11

40

30

Percent

20
34

26

10
18

12 10

0 LESS THAN 1 YEAR 1 - 3 YEAR 3 -5 YEAR ABOVE 5 YEAR NOT INTERESTED

HOLDING OF INVESTMENT

Interpretation: It is clear from graph 11 that the majority of respondents (34%) hold their investment for a period between 3 to 5 years, followed by (16%) more than 5 years, (18%) between 1 to 3 years, (10%) less than 1 year and (12%) of respondents have not responded. . B L D E As A S Patil College of MBA Programme, Bijapur Page 57

Karvy Stock Broking Ltd, Bijapur

Table No - 12 Range of Investment In Annually Valid Percent 16.0 34.0 26.0 12.0 12.0 100.0 Cumulative Percent 16.0 50.0 76.0 88.0 100.0

Valid

Frequency Up TO RS 30000 8 RS 30000 - 50000 17 50000 - 80000 13 80000 ABOVE 6 NOT 6 INTERESTED Total 50

Percent 16.0 34.0 26.0 12.0 12.0 100.0

Graph - 12

40

30

Percent

20
34

26

10
16 12 12

0 Up TO RS 30000 RS 30000 - 50000 50000 - 80000 80000 ABOVE NOT INTERESTED

RANGE OF INVESTMENT IN ANNUALY

Interpretation: It is clear from graph 12 that 34% of respondents have invested in Karvy an amount ranging Rs. 30000 to 50000, followed by (16%) in the investment slab 50000 to 80000, (16%) below Rs. 30000, (12%) of respondents have invested above Rs. 8000 and (12%) of respondents have not invested in Karvy. . B L D E As A S Patil College of MBA Programme, Bijapur Page 58

Karvy Stock Broking Ltd, Bijapur Chapter: IV

FINDINGS
The following are some major findings of the present study. 1. 38% of the respondents belong to professional class. 2. 38% of the respondents belong to income group between Rs.15000 to 25000 per month. 3. 100% of respondents are aware of the exiesitstence of Karvy Finpolis in Bijapur 4. The majority of respondents (42%) are came to know about the Karvy finapolis from friends and relatives. 5. 36% of respondents are aware of the equity trading in Karvy. 6. 100% of respondents have an investment plan in future. 7. The majority of respondents (%88) are prefer Karvy for their investment. 8. 34% of respondents have a plan of investing in equity trading. 9. Respondents (54%) agree that the motive of their investment is to earn stable and regular income. 10. Then majority of respondents (34%) have prefer to invest monthly from their savings. 11. The majority of respondents (34%) agree that they hold their investment 3 to 5 years period. 12. That (34%) of the respondents have invested their savings ranging between Rs. 30000 to Rs. 50000 in Karvy stock broking.

. B L D E As A S Patil College of MBA Programme, Bijapur Page 59

Karvy Stock Broking Ltd, Bijapur

LIMITATIONS
1). Due to limitation of time and cost constrains a sample size of only 50 respondents was chosen. 2).Data Analysis and interpretation done may not be that strong due to small sample and Convenience Sampling Method. 3).The sample extent for research is only BIJAPUR City. 4).Some of the respondents may be biased in giving responses.

. B L D E As A S Patil College of MBA Programme, Bijapur Page 60

Karvy Stock Broking Ltd, Bijapur

SWOT ANALYSIS OF KARVY

Strengths: Employees are highly empowered. Strong Communication Network. Good co-operation between employees. Number 1 Registrar and Transfer agent in India. Number 1 dealer of Investment Products in India.

Weaknesses:

High Employee Turnover.

Opportunity: Growth rate of mutual fund industry is 40 to 50% during last year and it expected that this rate will be maintained in future also. Marketing at rural and semi-urban areas.

Threats: Increasing number of local players. Past image of Commodity

. B L D E As A S Patil College of MBA Programme, Bijapur Page 61

Karvy Stock Broking Ltd, Bijapur

SUGGESTIONS
The following suggestion are occurred

1. The majority of investors are investing less than what they have saved Hence their needs to promote savings schemes which can attract more Investor to invest in various securities.

2. New attractive avenues of investment may be designed and launched to attract rural people who may be unaware of some benefits of investment through Karvy.

3. The Karvy need to shows their advertisement in Television media.

. B L D E As A S Patil College of MBA Programme, Bijapur Page 62

Karvy Stock Broking Ltd, Bijapur

CONCLUSION
Stock markets are in boom today, every body wants to know and study about in order to earn more and more money. Hence, stock market may be considered as a money market. Potential for stock market is more but due to lack of knowledge people are not ready to invest in such stock market.

The present study focused on various aspects of investment in stock market through Karvy. It is found that the potential investors are ready to invest through karvy stock broking Ltd.

. B L D E As A S Patil College of MBA Programme, Bijapur Page 63

Karvy Stock Broking Ltd, Bijapur

BIBLIOGRAPHY
1. Karvy Mazines and, News Papers and journal.

Websites: www.karvy.com www.bseindia.com

. B L D E As A S Patil College of MBA Programme, Bijapur Page 64

Karvy Stock Broking Ltd, Bijapur

Questionnaire
I DASHARATH. M. SHIRASHYAD, student of MBA IInd sem B L D E As A S Patil college of MBA Programme (AUTONOMUS), conducting a survey on Investment Behavior of Individual Investor with reference to KARVY STOCK BROKING LTD Bijapur. So I request to you fill the questionnaire and I assure that the given information will use only for studying purpose and will be kept confidential. (Please mark as () in front of your choice) 1. Name: Address: Phone no: 2. Age: 3. Gender: [ ]

Male

Female

4. Occupation: [ ] Business man [ ] Govt employee [ ] Others specify 5. Monthly income: [ ] Up to Rs.5000 [ ] Rs.15000-Rs.25000

[ [

] ]

Professionals Students

[ [

] ]

Rs.5000-Rs.15000 Rs.25000 and above

6. Do you know the existence of KARVY finapolis in Bijapur? [ ] Yes [ ] No 7. How you came to know about the KARVY finapolis? [ ] Ads in TV [ ] Ads in news paper [ ] Wall displays [ ] Friends and relatives [ ] Others specify 8. Which financial services/ products you know in KARVY? [ ] Equity trading [ ] Commodity trading [ ] Mutual funds [ ] Insurance . B L D E As A S Patil College of MBA Programme, Bijapur Page 65

Karvy Stock Broking Ltd, Bijapur [ ] Consultancy services [ ] IPO services

9. Do you have investment plan in future? [ ] Yes [ (If yes continue, else go to Q. no. 16)

No

10. Would you prefer KARVY for your investment? [ ] Yes [ ] No 11. Which type of investment plan you have? [ ] Fixed deposit [ ] Equity [ ] IPO [ ] Commodity trading [ ] Govt. securities [ ] Mutual funds [ ] Insurance [ ] Other 12. What motivates to you invest in KARVY? [ ] Provision of old age [ ] [ ] Children education [ ] [ ] Others specify 13. What is the frequency of investing? [ ] Weekly [ ] Quarterly [ ] Yearly

Capital appreciation To earn stable and regular income

[ [

] ]

Monthly Half-yearly

14. How long would you like to hold your investment? [ ] Less than 1 year [ ] 1-3 year [ ] 3-5 year [ ] Above 5 years 15. How much amount you invested in Karvy annually? [ ] Up to Rs.30000 [ ] Rs.30000-Rs.50000 [ ] Rs.50000-Rs.80000 [ ] Rs.80000 And above 16. Suggestions.

Thank you for your co-operation

. B L D E As A S Patil College of MBA Programme, Bijapur Page 66

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