EXECUTIVE SUMMARY

There is growing competition between brokerage firms in post reform

India. For investor it is always difficult to decide which brokerage
firm to choose.
Research was carried out to find which brokerage house people prefer
and to figure out what people prefer while investing in stock market.
This study suggest that people are reluctant while investing in stock
and commodity market due to lack of knowledge Main purpose of
investment is returns and liquidity, commodity market is less
preferred by investors due to lack of awareness. The major findings of
this study are that people are interested to invest in stock market but
they lack knowledge. Through this report we were also able to
understand, what are our Companys (Karvy) positive and strong
points, on the basis of which we come to know what can be the basis
of pitching to a potential client. We also gave suggestions to the
company, what improvement can be done to our product.
My Internship consisted of the On Job Training as A Seals Manager.
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 clients financial
condition as well as their risk taking capacity. Training sessions were
held to give me insights about the various products that KARVY
STOCKBROKING deals in like: Mutual Funds, Insurance and
Bonds. Presentations on the same after self study and analysis were
a part of this internship session. I provided financial advice and
suggestions to the investors for mutual funds which may prove
prudent to them. For other products I studied the clients investing
behavior and assisted the wealth manager, who decided the
investment options and designed the portfolios.

1
INTRODUCTION OF THE COMPANY

KARVY is 1st register and 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
corporate, comprising who is who of Corporate India.
It is a member of :-

National Stock Exchange (NSE)

Bombay Stock Exchange (BSE)
Multiple Commodity Exchange(MCX)
National Commodity and Derivative Exchange(NCDEX)

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 Indias premier
integrated financial service enterprise. Karvy has been a customer
centric company since its inception. It offers asingle 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. 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.

2
BACKGROUND

The flagship company, Karvy Consultants Limited was found with

the vision and enterprise of a group of practicing Chartered
Accountants on a modest scale in 1981 in Hyderabad at initial stage
it was very small in size. It was started with a capital of Rs. 1,50,000,
where it now has 13 branches. It initiated with just one activity and
later carved roads into fields of registry and share accounting as well.
From then there was no stopping at all. A decade of commitment,
professional integrity and vision helped Karvy achieve a leadership
position in its field. It is known to handle the largest number of
issues ever in the history of the Indian stock market in a particular
year. Thereafter, Karvy made inroads into a host of capital market
services, corporate and retail which proved to be a sound business
synergy. Today Karvy has access to millions of Indian shareholders,
besides companies, banks, financial institutions and regulatory
agencies. Over the past one and half decades, Karvy has involved as
a veritable link between industry, finance and people. In January
1998, Karvy became the first Depository Participant in Andhra
Pradesh. An ISO 9002 company, Karvys commitment to quality and
retail reach has made it an integrated financial services company. A
SEBI category 1 registrar, so far Karvy has handled over 675 issues
as Registrars to public issues, processed over 52 million applications
and is servicing over 16 million investors from various locations
spread over 205 cities.

3
KARVYS 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 .
An organization exists to accomplish something or achieve
something. The mission statement indicates what an organization
wants to achieve. The mission statement may be changed periodically
to take advantage of new opportunities or respond to new market
conditions. Karvys mission statement is To Bring Industry,
Finance and People together.
Karvy is work as intermediary between industry and people. Karvy
work as investment advisor and helps people to invest their money
same way Karvy helps industry in achieving finance from people by
issuing shares, debentures, bonds, mutual funds, fixed deposits etc.
Companys mission statement is clear and thoughtful which guide
geographically dispersed employees to work independently yet
collectively towards achieving the organizations goals.

VISION OF KARVY

Companys vision is crystal clear and mind frame very directed. To

be pioneering financial services company. And continue to
grow at a healthy pace, year after year, decade after decade.
Companys foray into IT-enabled services and internet business has
provided an opportunity to explore new frontiers and business
solutions. To build a corporate that sets benchmarks for others to
follow.

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KEY PERSONS

Mr. C Parthasarathy, a leader in the financial services

industry in India is responsible for building KARVY as one of India's

truly integrated Financial Services Provider; he is a fellow member of
the Institute of Company Secretaries of India, a Fellow Member of
the Institute of Chartered Accountants of India and a graduate in
law.As Chairman and Managing Director, he oversees the group's
operations and renders vision and business direction.

His passion and vision for achieving leadership in the business made
KARVY a leading financial intermediary ranking them as number
one in the registrar, Share Transfer and IPO Distribution businesses.
He also holds directorship in KARVY Securities Limited, KARVY
Stock Broking Limited, KARVY Investor Services Limited, KARVY
Computershare Private Limited, KARVY Commodities Broking
Private Limited, EPR Pharmaceuticals Private Limited and Ocean
Sparkles Limited.

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 Mr. M Yugandhar, Managing
Director, founder member of KARVY Consultants Limited, has
varied experience in the field of financial services spanning over 20
years. He is a Fellow Member of the Institute of Chartered
Accountants of India and was involved in the statutory and branch
audit of banks for 26 years.
Mr. Yugandhar holds directorships in KARVY Securities Limited,
KARVY Stock Broking Limited, KARVY Investor Services Limited,
KARVY Computershare Private Limited, KARVY Commodities
Broking Private Limited, Bizpro Technologies India Limited,
Pokarna Limited, Ravindranath G E Medical Associates Private
Limited, Everest Power Private Limited and Green Infrastructure
Private Limited.

Mr. M S Ramakrishna, Director,

founder member of KARVY Consultants Limited is the orchestrator
of technology initiatives such as the call center in the service of the
customer.
Mr. Ramakrishna is a member of the Hyderabad Stock Exchange and
is the director of KARVY Securities Limited, KARVY Stock Broking
Limited, KARVY Investor Services Limited, KARVY Computershare
Private Limited, KARVY Commodities Broking Private Limited,
Nitya Labs Limited and SAB Nife Power Systems Limited. He has
helped KARVY diversify into the field of medical transcription
leveraging on the company's core competency of transaction
processing. He has more than 20 years of experience in the financial
services arena.

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KARVY MILESTONES

Karvy has traveled a success route over the past 25 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
corporate 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.
(Karvy.com)

KARVY CREDO

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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.

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, 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.

Integrity
Everything else is secondary

Professional and personal ethics are Karvys 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.

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QUALITY POLICY:

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.
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 source of value-added financial products,
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.

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Karvy Values

Integrity
Responsibility
Reliability
Unity
Understanding
Excellence
Confidentiality

Karvy has adequate internal control systems and procedures

commensurate with the size nature of its business. These system and
procedures provide reasonable assurance of maintenance of proper
accounting records, reliability of financial information, protection of
resources and safeguarding of assets against unauthorized use.

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 ACHIEVEMENTS

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

volumes)

First ISO - 9002 Certified Registrar in India

India's No. 1 Registrar & Securities Transfer Agents

Handled over 500 Public issues as Registrars

Among the top 3 Depository Participants

Largest Network of Branches & Business Associates

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 operation

Handling the Reliance Account which accounts for

nearly 10 million account holders

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 KARVY WINGS
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
venture with computer share limited of Australia, the worlds largest
registrar. This company services around 6 lakh customer accounts in
a spread of 250 cities/towns in India.

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, beit 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
worlds largest transfer agent, the leading Australian company

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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 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 world.

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
efficiencies.

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 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.

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Karvy Insurance Broking Pvt. Ltd., provides both life and general
insurance products to retail individuals, high net-worth clients and
corporate. 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.

KARVY STOCK BROKING LIMITED (KSBL)

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 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

14
successful portfolio management. It provides customized advisory
services to help the client make right financial moves which
specifically suits their portfolios

BACKGROUND OF STOCK EXCHANGE IN

INDIA

The emergence of stock market can be traced back to 1830. In

Bombay, business passed in the shares of banks like the commercial
bank, the chartered mercantile bank, the chartered bank, the
oriental bank and the old bank of Bombay and shares of cotton
presses. Between 1840 and 1850, only half a dozen brokers existed
for the limited business. But during the share mania of 1860-65, the
number of brokers increased considerably. By 1860, the number of
brokers was about 60 and during the exciting period of the American
Civil war, their number increased to about 200 to 250. The end of
American Civil war brought disillusionment and many failures and
the brokers decreased in number and prosperity. It was in those
troublesome times between 1868 and 1875 that brokers organized an
informal association and finally as recited in the Indenture
constituting the Articles of Association of the Exchange. On or
about 9th day of July,1875, a few native brokers doing brokerage
business in shares and stocks resolved upon forming in Bombay an
association for protecting the character, status and interest of native
share and stock brokers and providing a hall or building for the use
of the members of such association. As a meeting held in the broker
Hall on the 5th day of February, 1887, it was resolved to execute a
formal deal of association and to constitute the first managing
committee and to appoint the first trustees. Accordingly, the Articles
of Association of the Exchange and the Stock Exchange was formally
established in Bombay on 3rd day of December, 1887. The
Association is now known as The Stock Exchange. The entrance
fee for new member was Re.1 and there were 318 members on the
list, when the exchange was constituted. The numbers of members
increased to 333 in 1896, 362 in 1916and 478 in 1920 and the
15
entrance fee was raised to Rs.5 in 1877, Rs.1000 in 1896, Rs.2500 in
1916 and Rs. 48,000 in 1920. At present there are 23 recognized
stock exchanges with about 6000 stock brokers. Organization
structure of stock exchange varies. 14 stock exchanges are organized
as public limited companies, 6 as companies limited by guarantee
and 3 are non-profit voluntary organization. Of the total of 23, only 9
stock exchanges have been permanent recognition. Others have to
seek recognition on annual basis. These exchange do not work of its
own, rather, these are run by some persons and with the help of some
persons and institution. All these are down as functionaries on stock
exchange. These are

1. Stockbrokers
2. sub-broker
3. market makers
4. Portfolio consultants etc.

1.) Stockbrokers

Stock brokers are the members of stock exchanges. These are the
persons who buy, sell or deal in securities. A certificate of
registration from SEBI is mandatory to act as a broker. SEBI can
impose certain conditions while granting the certificate of
registrations. It is obligatory for the person to abide by the rules,
regulations and the buy-law. Stock brokers are commission broker,
floor broker, arbitrageur etc.

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 Detail of registered brokers

Total no. of registor Total no. of Sub-brokers

Brokers As on 31 march 2010
as on 31march 2010

9,000 24,000

2.) Sub-broker

A sub-broker acts as agent of stock broker. He is not a member of a

stock exchange. He assists the investors in buying, selling or dealing
in securities through stockbroker. The broker and sub-broker should
enter into an agreement in which obligations of both should be
specified. Sub-broker must be registered SEBI for a dealing in
securities. For getting registered with SEBI, he must fulfill certain
rules and regulation.

3.) Market Makers

Market maker is a designated specialist in the specified securities.

They make both bid and offer at the same time. A market maker has
to abide by bye-laws, rules regulations of the concerned stock
exchange. He is exempt from the margin requirements. As per the
listing requirements, a company where the paid-up capital is Rs. 3
crore but not more than Rs. 5 crore and having a commercial
operation for less than 2 years should appoint a market maker at the
time of issue of securities.

17
4.) Portfolio consultants

A combination of securities such as stocks, bonds and money market

instruments is collectively called as portfolio. Whereas the portfolio
consultants are the persons, firms or companies who advise, direct or
undertake the management or administration of securities or funds
on behalf of their clients. Partial fulfillment for degree of PGDM
programmed, we received the opportunity from KARVY LTD for our
summer training project report. It is basically a stock brokering
company which deals in security and derivative market, Commodity
market, mutual funds and Insurance etc.

PRODUCTS & SERVICES OFFERED BY KARVY

1- Stock broking

2- D-mat services

3- Derivative Services

4- Investment product distribution

5- Investment advisory services

6- Corporate finance & Merchant banking

7- Income Tax enabled services

8- Registrars & Transfer agents

9- Loans

10- Equity Trading Platform

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 11- Mutual Fund Advisory and Distribution

12- Insurance Distribution..

13- Commodities Trading Platform

14- Portfolio Management Service.

1. Stock Broking:

KARVY is working as Capital Market Intermediaries. Stockbrokers

are regulated by SEBI [Stock-brokers and Sub-brokers] Regulations,
1992.
The stockbroker is a member of the stock exchange. Stockbrokers are
the intermediaries who are allowed to trade in securities on the
exchange of which they are members. They buy and sell on their own
behalf as well as on behalf of their clients. Stockbrokers expand their
business by engaging sub-broker. Sub-brokers mean any person not
being a member of a stock exchange who acts on behalf of a stock
broker as an agent or otherwise for assisting the investors in buying,
selling or dealing in securities through such stock-brokers.

2. D-mat Services:

Karvy is a depository participant with the National Securities

Depository Limited (NSDL) for trading and settlement of
dematerialized shares. Depository Participants (DPs) are
described as an agent of the depository. They are intermediaries
between the depository and the investors. The relationship between
the DPs and the depository is governed by an agreement made
between the two under Depo\-9sitories Act. A DP can offer
depository-related services only after obtaining a certificate of
registration from SEBI. Since Karvy is also in the broking business,
investors who use Karvys depository services get a dual benefit.

19
They can use Karvys brokerage services to execute transactions and
Karvys depository services to settle them.

3-Derivative Concept

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 instrument. 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 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.

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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There are 3 kinds of Derivative contracts:

Futures Contract
Forward Contract
Options Contract

4. Investment Products Distribution:

Company is also concern with the distribution of investment products

like
(a). Fixed Deposit
(b). Bonds
(c). IPO

(a). Fixed Deposit:

KARVY is dealer of 34 fixed deposits of various types which includes

fixed deposits of Public Sector, Non Banking Finance Companies,
Housing Finance Companies and Manufacturing Companies.
Company is dealer of following Fixed Deposits

PUBLIC SECTOR

Sl. No. Company Name

1 HUDCO
2 Sarder sarovar Narmada Nigam Ltd.
3 Tamilnadu Power Finance Corporation Ltd.
4 NTPC

[Table1: Public Sector FD with which Karvy deals]

NON BANKING FINANCE COMPANIES

Sl. No. Company Name

1 Ashok Leyland Finance Ltd.
2 Bajaj Auto Finance Ltd.
3 Birla Home Finance Ltd.

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4 Cholamandalam Investment & Finance Co. Ltd.
5 Escort Finance Ltd.
6 First Leasing Company of India Ltd.
7 IDBI Suvidha
8 Nicco Uco Alliance Credit Ltd.
[Table2: FD of Non Banking Finance Companies with which Karvy
deals]

HOUSING FINANCE COMPANIES

Sl. No. Company Name

1 Can Fin Homes Ltd.

2 Dewan Housing Finance Corporation Ltd.
3 Gruh Finance Ltd.
4 HDFC Ltd.
5 PNB Housing finance Ltd.
6 Sundaram Home Finance Ltd.
[Table3: FD of Housing Finance Companies with which Karvy deals]
MANUFACTURING COMPANIES
Sl. No. Company Name
1 A P Paper Mills Ltd.
2 Amtek Indian Ltd.
3 Atul Ltd.
4 Ballarpur Industries Ltd.
5 Chambal Fertilizers & Chemical Ltd.
6 Escort Ltd.
7 Greaves Ltd.
8 Indian Express
9 Ind-Swift Ltd.
10 J k Industries Ltd.
11 Gujarat Alkalies & chemical Ltd.
12 Jindal Steel & Power Ltd.
13 Supreme Industries Ltd.
14 Sound Craft Industries Ltd.
15 Zauri Industries Ltd.

22
(b). Bonds:

Karvy is dealer of following bonds

RBI Saving Bonds

NHB
REC

(c). IPO:

Company is also provides services related to Initial Public Offer of

company. Company provides stationary at the time of IPO as well as
provides information to investors regarding IPO and solves their
queries.

5. Investment Advisory Services:

This division provides portfolio management services to high net-

worth individuals and corporate. The expertise of Karvy in research
and stock broking gives it the right perspective to provide investment
advisory services. Company provides advisory services to its clients.
Financial goal of each individual investor varies according to his
dream, ambition and family size and future financial planning for the
children & old age pension for self and wife so does the pathway to
achieve it. Karvy apply the principles of Financial Planning as both
science & art, it understands the time horizon, risk bearing capacity
and investment goals of investors keeping in mind their psyche and
financial needs. Based upon this Karvy helps individual investors to
plan their entire life up to retirement, Taxes, Insurance needs and
other important personal financial goals. It designs portfolio for
investor to invest their saving in various financial products like
shares, bonds, debentures, mutual funds, fixed deposits, insurance
etc., Company design portfolio by considering following factors.
Investors requirement of getting money back,
Investors willingness to take risk,
Investors tax planning etc.

23
6. Corporate finance & Merchant banking:

Corporate finance is the financial activity of corporation. It deals

with the firm's operations with regard to investing and financing. It
concerned with how firms raise capital and the consequences of
alternative methods of raising capital. Firms capital can be raised by
raising loans, issuing shares, and acquiring or merging with other
businesses by public or private companies. Merchant banking is a
financial intermediation that matches entities that need capital and
those that have capital. Hence they facilitate the flow of capital in
the market. Karvy enjoys SEBI category (I) authorization for
Merchant Banking. Karvy offers the full spectrum of Merchant
Banking Services, beginning from identifying the best time for an
issue to final stage of marketing it, to harvest unparalleled success.
As a merchant banker Karvy offer following services:

Issue management
Instrument designing
Pricing of the issue
Registration process for the issue of shares
Marketing efforts
Final allotment to investors
Listing details on stock exchanges
Loan syndication
Lease financing
Corporate advisory services
Underwriting
Portfolio management

7. Income Tax enabled services:

Karvy has been started this service since March, 2004. Karvy is work
as TIN Facilitation Centre it provides following IT enabled services.

a. Distribution of PAN Card.

b. Distribution of TAN Card.
c. Services related to e-TDS.

24
Karvy work as an intermediary between NSDL and IT payers. Karvy
provides various form for different IT enabled services and guide
people to fill that forms. It also solves queries of the tax payers. It
also distributes PAN and TAN card to the tax payers.

TIN Overview

National Securities Depository Ltd. (NSDL) has established a

nationwide Tax Information Network (TIN) on behalf of the
Income Tax Department (ITD). This is designed to make the tax
administration more effective, furnishing of returns convenient,
reduce compliance cost and bring greater transparency. While NSDL
will be the primary agency responsible for the design,
implementation and maintenance of TIN as per the requirements of
ITD, other agencies will also play key roles in the TIN system. Karvy
has established infrastructure required to provide IT enabled
services so, Karvy provides TIN facilitation centers all over India on
behalf of NSDL. Besides Karvy following companies can also work as
intermediary between NSDL and customers.

Alankit Assignments Ltd.

Integrated Enterprise Ltd.
Shell Tran source Ltd.

The banking system, being the agency that collects the money on
behalf of the ITD against tax obligations from the tax payers will be
linked to the TIN central system to provide accounting information
on tax paid by various entities under various heads. As banks are
relatively technology-enabled entities, they will directly be linked
electronically to the TIN central system enabling online tax
accounting. On the other hand, the entities depositing the tax
(deductors) vary substantially with respect to their computer skills
and hence TIN design provides for TIN Facilitation Centers managed
by NSDL to help digitization and upload of tax payment related

25
information to the TIN central system. Besides NSDL, UTI Investor
Services Ltd. may also provides IT Enabled services.

8. Registrars & Transfer agents:

In 1985, Karvy entered the Registrar and Share Transfer Business to

create a market niche in the competitive field of financial services. In
1994-95, it reached a milestone when it processed 104 Public Issues
constituting 46 per cent market share. Now in its second decade of
existence, Karvy is the leader in the industry: In an opinion poll
conducted by an independent market research agency - MARG,
Karvy has been rated as Indias Most Admired Registrar on various
parameters: -

Overall Excellence.
Handling of Volumes
Timely Dispatch
Quality Management and Technological Up gradation.

A SEBI Category No. 1 Registrar, So far, Karvy has handled over 675
ISSUES as Registrars to public issues processed over 52 million
applications and is servicing over 16 million investors from various
locations spread over 205 clients.

9. Loan:

Karvy has recently started this service at selected branches of metro

Cities. This service has not been started in Saurashtra-Kucch region.
Karvy provides loans for following.

Vehicle Loan
Home Loan
Personal Loan

26
10. Equity Trading Platform

__________________
Your Ultimate
Investment
Destination
__________________

INTRODUCTION
Karvy I-Zone Plus is a brand new comprehensive online 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 advice 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.

27
 ADVANTAGE

Advisory service with a comprehensive online

investment platform

Free financial advice on portfolio allocation in various

asset classes

Free online stock-broking and attractive margin

funding options*

Daily 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

Access to research reports on Mutual Funds, IPOs and

Insurance

Free online commodities broking account **

Application in IPOs with attractive loan options for

applications*

Regular portfolio statement for better planned future

investments

Loans against securities *

Free subscription of KARVY FinaPolis magazine

28
Your Account Maintenance Charges

The Value You Get

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

will be

Your MF transactions in a year Rs. 1500 /-*

(assumed to be valued at Rs. 1,00,000)
Normal Annual Maintenance charges for a
Equity Broking + D-mat Account Rs. 500 /-
Normal Annual Charge for a Commodities
Broking Account Rs. 200 /-
Market Price for an elementary health check up
Rs 1500 /-
Subscription to KARVY FinaPolis magazine
Rs. 300 /-
Total Value Payable Upfront
Rs. 4000 /-

The Value You Pay For

You initially pay a Margin deposit of Rs. 5,000/-

Rs. 200/- gets deducted from this Margin deposit every
month, towards
Account Maintenance Charges (AMC) or Rs. 2000 /- per
year.
The remaining Margin deposit amount can be used for your
trades

Alternately, you initially pay a lump sum amount of Rs. 7,000/-

(comprising of Margin deposit of Rs. 5,000/- and an upfront AMC of
Rs. 2,000). With this option, you get a 16.67% discount on AMC of Rs.

29
2,400, that would otherwise be payable in installments. Also, you get
to use the entire Margin deposit of Rs. 5,000/- for your trades. Rs.350
is deductible additionally towards stamp charges. 2nd year onwards,
you have the option of paying the AMC as Rs. 200/- p.m. or an
upfront lump sum amount of Rs. 2,000/-
You save a minimum of Rs.1,250/- on what you would have
had to pay, if you had not registered for I-Zone +
I-Zone + provides you a LIFE TIME FREE demat account
(AMC for d-mat a/c is life-time freeTransaction charges will be as
applicable)

11. MUTUAL FUNDS

CONCEPT:

A Mutual Fund is a form of collective investment that pool of 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.
The flow chart below describes broadly the working of a mutual fund:

MUTUAL
FUND
CYCLE

30
TYPES OF MUTUAL FUNDS:
Open Ended
Schemes

Close Ended
By Structure
Schemes

Interval
Schemes
Growth
Schemes
Income
Schemes

Types of By Balance
Mutual Scemes
Investment
Funds
Objective Money
Market
Schemes

Tax Saving
Schemes
ELLS
Special
Schemes
Index
Schemes

Sector
Specific
Schemes

Open Ended Mutual Fund

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

31
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.

Interval Schemes:
It is a fund that combines the features of open-ended and closed-
ended schemes, making the fund open for sale or redemption during
pre-determined intervals. In other words, this is a mutual fund with
redemption features in between those of closed-end and open-end
funds.

Growth Schemes:
It is a diversified portfolio of stocks that has capital appreciation as
its primary goal, and it thereby invests in companies that reinvest
their earnings into expansion, acquisitions, and/or research and
development. Most growth funds offer higher potential growth but
usually at a higher risk.

Income Schemes:
This scheme seeks to provide stable current income by investing in
securities that pay interest. Income funds typically invest in utility
stocks and blue chips.

Balanced Scheme:
It is a type of mutual fund that invests its assets into the money
market, bonds, preferred stock, and common stock with the intention
to provide both growth and income. A balanced fund is geared
towards investors looking for a mixture of safety, income, and capital
32
appreciation. The amount the mutual fund invests into each asset
class usually must remain within a set minimum and maximum. It is
also known as Asset Allocation Fund.

Money Market Schemes:

Money Market Schemes aim to provide easy liquidity, preservation of
capital and moderate income. These schemes generally invest in
safer, short-term instruments, such as treasury bills, certificates of
deposit, commercial paper and inter-bank call money.

Tax Saving Schemes:

Tax-saving schemes offer tax rebates to the investors under tax laws
prescribed from time to time. Under Sec.88 of the Income Tax Act,
contributions made to any Equity Linked Savings Scheme (ELSS) are
eligible for rebate @20% to a maximum of Rs10, 000 per financial
year.

Index Schemes:
It is a portfolio of investments that is weighted the same as a stock-
exchange index in order to mirror its performance. This process is
also referred to as "indexing". Investing in an index fund is a form of
passive investing. The primary advantage to such a strategy is the
lower management expense ratio on an index fund. Also, a majority
of mutual funds fail to beat broad indexes.

Sector Specific Schemes:

It is an investment fund that makes investments solely in businesses

that operates in a particular industry or sector of the economy. Since
the holdings of this type of fund are in the same industry, there is an
inherent lack of diversification by sector associated with these funds.
These funds tend to increase substantially in price when there is an
increased demand for the product or service offering provided by the
businesses in which the funds invest. On the other hand, if there is a
downturn in the specific sector in which a sector fund invests, the
fund will face heavy losses due to the lack of diversification in its
holdings.

33
SELECTION CRITERIA FOR MUTUAL FUNDS:

1) 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.

2) 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.

3) Consistency in returns:
The returns are not just expected to be high but a consistency should
be observed in the funds performance and returns. The previous year
return for a particular fund may be 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.

4) Tax benefits:
The investors whose objective is tax saving then advice to them
invests in tax saving Mutual Funds.

5) Fund Manager:
An investor will trust and invest his money in the funds which are
managed by well reputed fund managers. Thus this criterion is also
of utmost importance. I made suggestions to the clients after taking
into consideration the above mentioned criterions and based on the
mutual consent of the client as well, the investment decision was
then taken. The procedure for filling forms etc followed. If the
investor had already invested in equities but wanted to open a
Trading and D-MAT account, I had to explain them the charges and
procedures for the same.

34
List of Mutual Funds Clients of KARVY

1 Alliance Mutual Fund

2 Birla Mutual Fund
3 Bank Of Baroda Mutual Fund
4 Can Bank Mutual Fund
5 Chola Mutual Fund
6 Deutsche Mutual Fund
7 DSP Merrill Lynch Mutual Fund
8 Franklin Templeton Investment
9 GIC Mutual Fund
10 HDFC Mutual Fund
11 HSCB Mutual Fund
12 IL & FS Mutual Fund
13 JM Mutual Fund
14 Kotak Mutual Fund
15 LIC Mutual Fund
16 Panjab National Bank Mutual Fund
17 Prudential ICICI Mutual Fund
18 Principal Mutual Fund
19 Reliance Mutual Fund
20 State Bank of India Mutual Fund
21 Standard Chartered Mutual Fund
22 Sundaram Mutual Fund
23 Sun F&C Mutual Fund
24 Tata Mutual Fund

12. INSURANCE
Karvy is also dealer of many private life insurance companies.

ICICI Prudential Life Insurance

HDFC Life Insurance
TATA AIG Life Insurance
Max New York Life Insurance

35
Concept
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
that is risk sharing. 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 added.
Factors included in the calculation of sum assured are:
Date of birth
Gender
Duration
Health conditions
Job profile

Types Of Insurance

Types of Insurance

Non Life/
Life Insurance General
Insurance

-Whole life
-Money back
-Property
-Endowment
-Personal
Assurance
-Life style
-Pension Plan
-Packege
-Unit Linked
Product
(ULIP

36
MAJOR PLAYERS IN THE REGION
1. Karvy
2. Indiainfoline
3. ICICI direct
4. HDFC security
5. Indiabulls

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 has a professional management
team and ranks among the best in technology, operations and
research of various industrial segments.

History of Karvy :- The birth of Karvy was on a modest scale in

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, karvy utilized its
experience and superlative expertise to go from strength to strength,
to better their services, to innovate, diversify and in the process,
evolved as one of Indias premier integrated financial service
enterprise.

PRODUCT AND SERVICES OF KARVY GROUP

Karvy comtrade.
Karvy consultant ltd.
Karvy merchant banking.
Karvy global services ltd.

37
ICICI Direct

ICICI Web Trade Limited (IWTL) maintains www.icicidirect.com

(herein after referred to as the("Website") whereas IWTL is an
affiliate of ICICI Bank Limited and the Website is owned by ICICI
Bank Limited. IWTL has launched and established an online trading
service on the Website.

PRODUCTS AND SERVICES OF ICICI DIRECT

Investing in Mutual funds

Personal Finance

Customer Service Features

IPOs

Margin Trading

Margin PLUS Trading

Call Trade

Trading on NSE/BSE

Trade in derivatives

Indiainfoline Security Privet ltd

India Infoline.com Securities Pvt. Ltd. is a wholly owned subsidiary

of India Infoline.com Ltd and is the stock broking arm of India
Infoline.com. The subsidiary was formed to comply with regulatory

38
guidelines. www.5paisa.com is a focused website for online stock
market trading. 5paisa.com is a trade name owned by the India
Infoline.com group. IILSPL has applied for trading membership of
the BSE under Securities and Exchange Board of India (Stock
Brokers and Sub-Brokers) Rules 1992.IILSPL is in the business of
providing broking services online via the Internet ("E-broking
Services") and has been permitted by the NSE by way of registration
permission no: NSEIL/CMO/INET/1103/2000 dated 03/July/2000,
and will be applying for permission to the BSE, to provide E-broking
Services to its clients. IILSPL is a TRADING MEMBER of the
National Stock Exchange of
India.

PRODUCT OFFERED BY IILSPL

Stock market:-IILSPL deals in stock market by trading in equity

and Derivatives.

Personal finance: - It Deals In Mutual Fund And Insurance.

Online Trading: - It provides services in stock and commodity

trading (through Internet).

HDFC Security
HDFC security is the subsidiary of HDFC (Housing Development
Financial Corporation). www.hdfcsec.com would have an exclusive
discretion to decide the customers who would be entitled to its online
investing services. www.hdfcsec.com also reserves the right to decide
on the criteria based on which customers would be chosen to
participate in these services .The present web site (www.hdfcsec.com)
contains features of services that they offer/propose to offer in due
course. The launch of new services is subject to the clearance of the
regulators. i.e. SEBI, NSE and BSE.

39
PRODUCT OFFERED BY HDFC SECURITY

Online trading for Resident & Non Resident Indians.

Cash-n-Carry on both NSE and BSE.

Day trading on both NSE and BSE.

Trade on Futures & Options on the NSE.

Online IPO's.

Telephone-based Broking (Equity & Derivatives).

Indiabulls Securities Limited

Indiabulls Securities Limited was incorporated as GPF Securities
Private Limited on June 9, 1995.The name of the company was
changed to Orbis Securities Private Limited on December 15, 1995 to
change the profile of the company and subsequently due to the
conversion of the company into a public limited company; the name
was further changed to Orbis Securities Limited on January 5, 2004.
The name of the company was again changed to Indiabulls Securities
Limited on February 16, 2004 so as to capitalize on the brand image
of the term Indiabulls in the company name. ISL is a corporate
member of capital market & derivative segment of The National
Stock Exchange of India Ltd. At present, ISL accounts for
approximately 3% of the total daily turnover of the Exchange with
32,359 client relationships and 70 branches spread across the
country as of April 30, 2004.

Indiabulls Credit Services Limited

Indiabulls Credit Services has been valued at Rs. 263 crore with the
Rs. 87.6-crore infusion. Indiabulls Credit Services Ltd, the recently
formed subsidiary of broking firm, Indiabulls Financial Services Ltd.

40
Faralon Capital, a San Franciscobased private equity fund, and its
affiliates have acquired 33.3 per cent stake for Rs 87.6 crore.

Indiabulls Real State

Indiabulls through its group companies has entered Indian Real

Estate business in 2005. It is currently evaluating several large-scale
projects worth several hundred million dollars. Indiabulls became the
first company to bring FDI in Indian Real Estate through a JV with
Farallon Capital Management, a respected US based investment
firm.

Products Offered By Indiabulls

Equity & Debt Stock Broking

Insurance

Commodity trading

Depository Services

Derivatives Broking Services

Equity Research Services

Mutual Fund Distribution

IPO Distributions

SHARE KHAN PVT. LTD.

Sharekhan is one of the leading retail brokerage of Citi Venture which is

running successfully since 1922 in the country. Earlier it was the retail broking
arm of the Mumbai-based SSKI Group, which has over eight decades of
experience in the stock broking business. Sharekhan offers its customers a wide

41
range of equity related services including trade execution on BSE, NSE,
Derivatives, depository services, online trading, investment advice etc.

Product & Services offer by Share Khan

Equity Trading Platform (Online/Offline).

Commodities Trading Platform (Online/Offline).

Portfolio Management Service.

Mutual Fund Advisory and Distribution.

Insurance Distribution.

42
Objective of the Study
Each research has its own specific purpose. It is like to discover to
question through the application of the scientific procedure. The
main purpose of research to find the truth fact that is hidden and
which has not been discover as yet. Our research study has two
objectives.

Primary Objective

How KARVY is best service provider as stock broker in the city.

Secondary Objective

To know about awareness towards stock broker and Karvy

Ltd.

To study about competitive position of Karvy in
competitive market.

To study about efficiency and effectiveness of Karvy
services in relation to competitor.

To study about whether pepole are satisfied with
Karvy services and management or not.

To study what is the difficulty that face by investors
to invest through Karvy.

To study about need of improvement in existing
trading system

43
LIMITATION

The sample extent for research is only in Durgapur City.

Size of the research may not be substantial.

There was lack of time on the part of respondents.

The survey was carried through questionnaire and the

questions were based on perception.

There may be biasness in information by market participant.

44
RESEARCH METHODOLOGY

Type of Research

On the basis of theoretical study Research has many types. All these
are distributed on the nature of research. Some of these are like-

Descriptive and Analytical Research

Qualitative and Quantitative Research
Conceptual and empirical Research
Applied and Fundamental Research
One time Research

Our research on the based on Descriptive, Qualitative and

Quantative.

Descriptive Research

Descriptive research includes Survey and Fact finding enquires of

different kinds. The major purpose of descriptive research is
description of the state of affair as it exists at present. Researcher
has no control over the variable in this research.

Qualitative Research

In our research we need comparison between different stock broker.

So this based on the all qualitative research. In short, qualitative
research is especially important in the behavioral science where the
aim is to discover the underline motive of human behavior. Through
this research we analyses various factors which motive to people to
behave in particular manner or which make people like or dislike in
particular thing.

45
Quantitative research

Quantitative research based on the measurement of quantity and

amount. It can be applicable to phenomena that can be express in
quantity. So we use it in our research for collecting of numerical data.

Sample Design

Sample design is a definite plan for obtaining a sample from a given

population. It refers to the technique or procedure the researcher
would adopt in selecting item for sample.

Generally sample design is two types-

Probability Sample Design

Non Probability Sample Design

We used the probability research design.

Sampling Unit

Sampling unit may be geographical such as state, district,

village etc. The researcher will have to decide one or more of
such as units that has to select for his study.

Size of Sample
This refer to the number of item that to be selected from the
universe to constitute a sample.
In our research sample size is 100

But we also study of Five Stock Brokers Companies related to the

security and commodity market like India-Infoline, ICICI Direct,

46
HDFC Security, Indiabulls, ShereKhan for the appropriate collection
of the information.

Source of data Collection

While deciding about method of data collecting to be used for the

study the research should keep type of data.

1. Primary Data
2. Secondary Data

We used in our research Primary as well as Secondary data. Primary

data means collected fresh, and first time data and secondary data
means that is already available like magazine, news paper, internet,
annual report, library etc.

Survey Method

Survey refers to the method of securing information concerning

phenomena under study from all or selected number of respondent of
the concern area. In a survey the investors examines those
phenomena which exist in universe independent on his action. We
used the scheduling method.

Scheduling

In these method enumerators along with schedule, go to the

respondent, and ask them questions as per questionnaire in order the
questions are listed and record the responses to make analyses.

47
ANALYSIS OF DATA

After the whole study, we find out the following results.

Results on the basis of charges

There are the two types of the transaction: -
1. Intra- Day Based
2. Delivery Based

0.7
0.6
0.6 0.55
0.5 0.5
0.5

0.4
0.3 Intra day
0.3 Delivery
0.2
0.2

0.1 0.06 0.05 0.05 0.05

0.03 0.04

0
Karvy ICICI Direct HDFC Share Khan Indiabulls India
Security infoline

All the figures are in paisa/100repees.

Inference:

According to the survey ICICI Direct maximum charge 0.06paisa and

0.60 paisa brokerage as compare to another in Intra-day and delivery
time and is second one which HDFC charge maximum while Karvy
minimum charge 0.03/ 0.30pasia in both Intra-day/delivery on the
maximum investment.

48
Result On The Basis Of Account Opening
Charge
HDFC Security Ltd:
Account opening charge followed from April 2005 Rs.749. If the
customer has existing relation with HDFC.

Share Khan Ltd:

There is no account opening charge but require margin money
Rs.5000 for trading purpose.

ICICI Direct:
An one time charge of Rs. 750 at the time of account opening will be
charged. You may later upgrade your invest account to an ICICI
direct.com share trading account when you desire to trade in equity.

India infoline:
There is a nominal charge of Rs. 500 only toward stamp duty, legal
and processing fee for account opening. This include the registration
and account opening charge. Bank and Depository Participant (DP)
account opening charges, if applicable, are payable separately.

Karvy Stock Broking Ltd:

Account opening charge of Rs.350 at one time and Rs.225 charge for
annual maintenance charge(AMC)

Indiabulls:
Account opening charge Rs.900. There is no any annual maintenance
charge(AMC) and no any margin money are require.

49
Inference

Indiabulls maximum charge Rs.900 for account opening whereas

Karvy minimum charge for Rs.350 for account opening with Rs.225
AMC but there is no AMC in Indiabulls. In Share Khan Ltd. No
account opening charge but it require Rs.5000 margin money.

Result On The Basis Of Facilities

Facilities ICICI HDFC Karvy Share Indiabulls India

Direct Securities Khan Infoline

Share Yes Yes Yes Yes Yes Yes

Trading
Commodity Yes Yes Yes Yes Yes Yes
Trading
D-Mat Yes No Yes Yes Yes Yes
Opening
Rights

Inference:

In this case we find all stock Brokers Provide all types of facility at
the different charge.

50
DATA ANALYSIS & FINDINGS
1. Do you know about the investment options?

Knowledge %age
Yes 80%
No 20%
Total 100

20%

Yes
No

80%

Inference

Only 80% people know the exact meaning of investment and

remaining 20% people take his /her residential property as
investment. According to law purpose this is not an investment
because of it is not create any profit for the owner.

51
2. Most preferable investment scenario ?

Investment Scenario %
Bank 24%
Derivative & Securities 28%
Market
Insurance 4%
Real state 20%
Bonds 20%
Others 4%
Total 100

4%
20% 24%
Bank
Derivative & Securities Market
Insurance
20% Real state
28%
4% Bonds
Others

Inference:

Today scenario is changed so the most area are covered by derivative

and securities market. It is 28% of the total population.

52
3. What is the basic purpose of your investment?

Investment purpose Percentage (%)

Liquidity 30%
Return 25%
Capital Appreciation 10%
Tax Benefit 20%
Risk Covering 5%
Others 10%
Total 100

10%
5% 30%
Liquidity
20% Return
Capital Appreciation
Tax Benefit
10% 25% Risk Covering
Others

Inference:

75% peoples invest their money to Liquidity, Return and Tax benefit.
And remaining 25% people are interested in capital appreciation, risk
covering and other purpose.

53
4. Most important things you take into your mind while make
investment?

Factor Percentage (%)

Risk 8%
Return 17%
Both 75%
total 100

8%
17%

Risk
Return

75% Both

Inference:

In this case most of people like 75% are consider the both factor risk
and return but only 25% people are consider risk and return.

54
5. Awareness related securities market?

Knowledge Percentage (%)

Complete 8%
Partial 75%
Nil 17%
Total 100

8%
17%

Complete
Partial
Nil

75%

Inference:

On that basis, 17% people dont know about the securities market
and 75% people having partial knowledge about securities, market so
in this case there is require more promotion activity to investment
awareness.

55
6. Do you have any D-mat & Trading account?

Account Percentage(%)
Yes 40%
No 60%
Total 100

40%

Yes
60% No

Inference:

Only 40% people having the D-mat and Trading account. Other
people dont know either security market or why share move and
down.

56
7. In which company do have D-mat and Trading account?

Company Percentage
ICICI Direct 26%
HDFC Security 12%
Karvy 19%
Share Khan 15%
Indiabulls 10%
India infoline 11%
Other 7%
Total 100

7%
11% 26% ICICI Direct

10% HDFC Security

Karvy
12% Share Khan
15% Indiabulls
19% India infoline
Other

Inference:

Only ICICI having the 24% of D-mat and trading account because of
their better service and karvy another stock broker who is in second
position just because of their product and services.

57
8. Specify the reason of satisfaction with the current broking
house?

Satisfaction Percentage (%)

Operating expenses 18%
Services 25%
Brokerage 57%
Total 100

18%

Operating expenses
Services
Brokerage
57% 25%

Inference:

Regarding satisfaction 57% people conceder brokerage only 25%

people looking for batter services.

58
FINDINGS

According to survey most of customer of ICICI Direct says it is

best service provider.

After analysis it found those 70% customers are satisfied with

Karvy & ICICI Direct.

Main purposes of investments are liquidity and returns.

Investor having Risk as well as Return in their mind while

making their investing.

Businessmen are more interested in the stock market in

comparison to other.

Now commodity market is more preferred by investors.

People want to invest in security market but they havent

proper knowledge about security market.

People are not aware of hedging in stock market.

People are more emphasis on brokerage then service provided

by brokerage houses.

59
SUGGESTIONS

Commitment should be equalized for every person.

Provide the facility of free demonstrations for all.

There should be a limited no. of clients under the relationship

manager. So that he can handle new as well as existing
customer properly.

Some promotional activities are required for awareness to the

customer.

People who at young age should be encouraged to invest in

stock market.

Seminars should be held for providing information to

prospective and present customer.

60
CONCLUSION

On the basis of study it found that karvy stock broking ltd. is batter
services provider then other stock brokers because of their research
and personalized advice on what stock buy and sell. karvy provide
facility of trade as well as relationship manager facility for
encouragement and protect the interest of investors. It also provide
the information through the internet and mobile alert that what
IPOs are coming in the market and it also provides its research on
the future prospect of the IPO.

Study also includes that people are not much aware of commodity
market while its going to be big market in India.

The company should organize the seminars and similar activities to

enhance the knowledge of prospective and existing customers, so that
they can feel more comfortable while investing in stock market.

61
REFERENCES

Books:

Marketing Management, 13th Edition, S A Sherlekar, Himalaya

Publishing House, Mumbai, 2007

Basic Marketing A global Managerial Approach, 15th Edition,

William D Perreault Jr, E Jerome McCarthy, Tata McGraw Hill,

New Delhi, 2006

Marketing Case Study Solutions, 2nd Edition, H Kaushal,

MacMillan India Ltd., New Delhi, 2007

Financial Accounting for BBA, 1/e

S N Maheshwari & Sharad K Maheshwari

An Introduction to Accountancy, 11/e

S N Maheshwari, Sharad K Maheshwari & Suneel K Maheshwari

FINANCIAL INSTITUTIONS AND MARKETS - L.M.BHOLE

INVESTMENT MANAGEMENT - V.K.BHALLA

62
Research Methodology - Kothari

C.R Kothari, Research Methodology.

New Delhi,Vikas Publishing House pvt. Ltd.2009.

WEBSITES:

www.mutualfundsindia.com
www.valueresearchonline.com
www.amfi.com
www.hdfcfund.com
www.karvy.com
https://www.karvyonline.com
economictimes.indiatimes.com
www.moneycontrol.com

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APPENDIX

64
QUESTIONNAIRE
1) Do you know about Investment options available?

a) Yes b) No

2) Do you know about the different types of investment alternatives?

a) Insurance & mutual funds b) Banks

c) Real estate d) Share market
e) Commodity f) Others

3) What is the basic purpose of your investment?

a) Liquidity b) Returns
c) Capital appreciation d) Risk covering
e) Tax benefits

4) What are the most important things you take into account, while
making any investment?

a) Risk b) Returns c) Both

5) Do you have any knowledge of share markets?

a) Partial b) Complete c) Nil

6) Do you have any D-mat & Trading account?

a) Yes b) No

7) In which company you have D-mat & Trading account?

a) Sharekhan Ltd b) Karvy

c) Indiainfoline d) ICICI direct
e) Indiabulls f) HDFC securities
g) Others

65
8) Are you satisfied with you present broking company?

a) Yes b) No

9) What is the reason? Please specify.

a) Services _______________________________________
b) Brokerage _____________________________________
c) Operating expenses ______________________________
d) Others ________________________________________

Respondent Details
Name: _____________________________ Date of birth: ___________________

Contact Number: _____________________ E-mail Address: ______________

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