KARVY- STOCK BROKING LIMITED

(SUMMER INTERNSHIP REPORT)

On
COMPARATIVE ANALYSIS OF STOCK BROKING
COMPANIES

For The Partial Fulfillment Of The Requirement For The

Award Of Post Graduate Diploma In Management

Submitted By:
Deepak Bhaskar
Sikkum Manipal University

TABLE OF CONTENTS
S.

Title

Page No.

No.

1)
2)
3)

Preface
Acknowledgment
Scenario Of Indian Stock Market

5
6
7

Stock Brokers
4)
5)
6)

Sub Brokers
Executive Summary
Introduction
Background

9
10
11

Organization
Karvys Mission
Karvys Milestone
Karvys Credo
7)
8)

Quality Policy
Achievements
Karvy Wings

18
19

Karvy Consultants Ltd.

Karvy Investor Services Ltd.
Karvy Computershare Pvt. Ltd.
Karvy Global Services Ltd.
Karvy Comtrade Ltd.
Karvy Insurance Broking Pvt. Ltd.
9)

Karvy Stock Broking Ltd.

Product & Services
i.

Products

24

 Demat Account ( I-Zone

Plus )
Mutual Fund
Insurance
Equities
Bonds
Derivatives
ii.

Services
Depository
Distribution Of Financial
Products
Advisory Services
Private Client Group OR
Customized Portfolio

10)
11)
12)
13)
14)
15)

Management Services
Competitors Of Karvy
Comparative Analysis
Findings
Suggestions
Conclusion
Appendix

51
52
65
66
67
68

Questionnaire
16)

Bibliography

72

FINAL REPORT
ON
COMPARATIVE ANALYSIS OF STOCK BROKING
COMPANIES

By
Deepak Bhaskar
(Summer Internship Report)

PREFACE
THE CORPORATE PROGRAM of Diploma In Management course is a
well structured and integrated programme. The course of management gives
a practical knowledge in our study course. Industries give us much
information about the different product and services we use in our day to day
life.
It is highly said that practice makes a man perfect the summer project
training which is a part of PGDM to get a practical understanding and
training of the business management. Thus the industrial training which is a
part of PGDM course helps the student to get the knowledge about the actual
environment of an organization.
Karvy Stock Broking ltd. is one of such company dealing in Share market
Derivatives, Commodities, Mutual fund IPO distribution with almost
branches in overall India.
It involved the study of marketing activities of the organization. I have under
taken industrial training in Karvy Stock Broking ltd. at Lucknow crossing
from 18-May-2011 to 30-June-2011 as a part of my PGDM course
curriculum and I thus, present a project report on it at the best of my ability
knowledge and work done.

ACKNOWLEDGEMENT
I would like to convey my heartiest gratitude to several people, for their
support and guidance which helped me complete my Summer Internship.
First and foremost I would like to thank KARVY STOCK BROKING
LIMITED, Lucknow for giving me an opportunity to do my internship in
their esteemed organization. My special appreciation extends to the
Regional Head Mr. Sandeep Srivastav for his constant encouragement
throughout this period. I also extend my gratitude to my guide at KARVY,
Mr. Anant Mishra, who instructed me with the work procedures and dealt
with us with patience at all times.
This internship would not be complete without the support of our Guide Ms.
Zinnia Mukherji (Faculty- Management) for their guidance and
unflinching support throughout the phases of my Internship.

My special thanks to my co-students and dear friends supported me

throughout my Internship and with whose help I could complete my work
efficiently and effectively. Their consistent help kept me motivated and
going.

Last but not the least, my endless appreciation goes to my family who has
stood by my side and given me moral support whenever I was low and
boosted my will power.
Thank You!

SCENARIO OF INDIAN STOCK MARKET

The financial scene is worldwide. The crisis had left the stock market in a
deep crisis. It is slowly regaining its breath and there are now
investments made all through the world. Stock brokers as well as general
public are making money out of investing in shares and stocks. The
financial trauma that all of us faced are over and the recovery of the
market is now being witnessed. Throughout the world the market is
limping back to its normal trading life, as compared to other financial
markets all over the world, the Indian stock market came back to life
quite fast.
The Indian Stock Market is the undisputed leader in the Asias market. It
has a reputation among the foreign institutions. During the past few years
from the time of crash in 2004 there have been many swings in the Indian
stock market. But, the gains from the market have been quite modest. The
traders have made money by investing in shares and stocks and have
made handsome profits. The rate of inflation in India is high so the
brokers are more interested in selling than in buying stocks. The FDIs
have also reduced considerably and the market has seen a rigorous
financial critical condition.
Now the financial scenario of Indian stock market is on the road to
recovery and is getting back its lost sight. In recent times market is
gaining and has reached 17000 points and so is now looking towards a
ray of hope. Take your investment seriously and dont treat yourself to

ups and downs as the bad part has gone. However, be ready for the good
and

bad

points

of

the

stock

market

investment.

You should have proper investment guidance as it will work like magic
for you if you are trading shares in share market. You should have all the
latest information ready with you. You need stock quotes, stock updates,
daily stock alerts and every other
information related to stock/stocks within your reach. The platform you
use should be definitive in every
Part. Proficient stock advice from the brokers and the stock professionals
is the information that is must for you.

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.

Sub-Brokers
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.

10

EXECUTIVE SUMMARY
This internship report consists of the overall experience of working as a part
at KARVY STOCK BROKING LIMITED. This experience helped me
understand the basic functioning of the Broking House where I was
inducted.
My Internship consisted of the On Job Training as A Marketing Executive.
The best learning experience was that I started from the very basics of
getting to that position and not from the position itself. This helped me get
useful insight and understanding of various financial products, the market
details about them and the benefits provided by them to the customers.
Emphasis was given in analysis of the investor behavior of the clients.
Another interesting fact was that all these products were suggested to clients
not just based on their market performance and returns, but on the clients
financial condition as well as their risk taking capacity.
Training sessions were held to give me insights about the various products
that KARVY STOCK BROKING deals in like: Demat accounts and
Insurance. Presentations on the same after self study and analysis were a part
of this internship session.
I provided advice and suggestions to the investors for online trading and
which may prove prudent to them.

11

INTRODUCTION
KARVY is a premier integrated financial services provider and ranked
among the top five in the country in all its business segments. It services
over 16 million individual investors in various capacities and provides
investor services to over 300 corporates, comprising who is who of
Corporate India.
It is a member of all three: National Stock Exchange (NSE)
Bombay Stock Exchange (BSE)
Hyderabad Stock Exchange (HSE)
KARVY utilized its experience and superlative expertise to capitalize on its
strengths and better its service, innovate and provide new ones. It diversified
in the process and thus evolved as Indias premier integrated financial
service enterprise.
KARVY has been a customer centric company since its inception. It offers a
single platform servicing multiple financial instruments in its bid to offer
complete financial solutions to the varying needs of both corporate and retail
investors, where an extensive range of services are provided with great
volume-management capability.

12

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.
(Karvy.com)

13

BACKGROUND
The Karvy group

was formed in 1983 at Hyderabad, India. Karvy

ranks among the top player in almost all the fields it operates. Karvy
Computershare Limited is Indias largest Registrar and Transfer Agent
with a client base of nearly 500 blue chip corporates, managing over
2 crore accounts. Karvy Stock Brokers Limited, member of National
Stock Exchange of India and the Bombay Stock Exchange, ranks
among the top 5 stock brokers in India. With over 6,00,000 active
accounts, it ranks among the top 5 Depositary Participant in India, registered
with NSDL and CDSL. Karvy Comtrade, Member of NCDEX and MCX
ranks among the top 3 commodity brokers in the country. Karvy Insurance
Brokers is registered as a Broker with IRDA and ranks among the top 5
insurance agent in the country. Registered with AMFI as a corporate Agent,
Karvy is also among the top Mutual Fund mobilizer with over Rs. 5,000
crores under management. Karvy Realty Services, which started in 2006, has
quickly established itself as a broker who adds value, in the realty sector.
Karvy Global offers niche off shoring services to clients in the US.
Karvy has 575 offices over 375 locations across India and overseas at Dubai
and New York. Over 9,000 highly qualified people staff Karvy.

14

ORAGANIZATION
Karvy was started by a group of five chartered accountants in 1979. The
partners decided to offer, other than the audit services, value added services
like corporate advisory services to their clients. The first firm in the group,
Karvy Consultants Limited was incorporated on 23rd July, 1983. In a very
short period, it became the largest Registrar and Transfer Agent in India.
This business was spun off to form a separate joint venture with
Computershare of Australia, in 2005. Karvys foray into stock broking began
with marketing IPOs, in 1993. Within a few years, Karvy began topping the
IPO procurement league tables and it has consistently maintained its position
among the top 5. Karvy was among the first few members of National Stock
Exchange, in 1994 and became a member of The Stock Exchange, Mumbai
in 2001. Dematerialization of shares gathered pace in mid-90s and Karvy
was in the forefront educating investors on the advantages of
dematerializing their shares. Today Karvy is among the top 5 Depositary
Participant in India.
While the registry business is a 50:50 Joint Venture with Computershare of
Australia, we have equity participation by ICICI Ventures Limited and
Barings Asia Limited, in Karvy Stock Broking Limited. For a snapshot of
our

organization

structure,

please

click

here.

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

top-notch research team based in Mumbai and Hyderabad supports its
employees to advise clients on their investment needs. With the information

15

overload today, Karvys team of analysts help investors make the right calls,
be it equities, mf, insurance. On a typical working day Karvy:
Has more than 25,000 investors visiting our 575 offices
Publishes / broadcasts at least 50 buy / sell calls
Attends to 10,000+ telephone calls
Mails 25,000 envelopes, containing Annual Reports, dividend cheques
/ advises, allotment / refund advises
Executes 150,000+ trades on NSE / BSE
Executes 50,000 debit / credit in the depositary accounts
Advises 3,000+ clients on the investments in mutual funds.
Karvy Stock Broking Limited is a member of the National Stock Exchange
of India and The Stock Exchange Mumbai. We rank among the top 5 brokers
on the NSEI, with over 130,000 trades per day. We began with the aim of
serving the small investors today we have over 3,50,000 clients trading
through us. We are uniquely positioned to offer the best to you, with over
575 branches, one is located near your office / home. If you prefer to trade
from the comfort of your home or office, our online platform provides the
ideal way to trade. Our laser focused approach to serving the retail investors
remains the cornerstone to our success over the last two decades.
If you are looking for an easy and convenient channel to trade in the stock
markets KARVY is your trusted trading services partner. To start trading
in equities, you need to register as a client with us, and you are ready to
trade on the premier exchanges of India.
16

KARVY offers you feature-rich trading accounts with options to trade

through any of our branches or by yourself using our proprietary online
trading platform. Our friendly and qualified staff can assist you in putting
through the trades at the branches. Our advise is backed by a top notch
research team. Our 40 strong research team, based in Mumbai and
Hyderabad, generate up to date and dynamic Research Calls for our
customers and affiliates in various market segments (Cash and Futures /
Options).

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 .
(Karvy.com)

KARVYSS MILESTONE
Karvy has traveled a success route over the past 20 years and positioned
itself as an emerging financial service giant in which embeds the confidence
and support of enviable patrons across the financial world. Patrons are also
of diversified fields which includes over 16 million individual investors in

17

various capacities and 300 corporates comprising the best out of the whole
lot .Years of experience of holistic financial services and expertise in this
industry has helped it gain the status it enjoys and cherishes today.

(Karvy.com)

KARVY CREDO
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.

18

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.
(Karvy.com)

19

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.

20

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.

(Karvy.com)

21

ACHIEVEMENTS
Among the top 3 stock brokers in India (4% of NSE volumes)
India's No. 1 Registrar & Securities Transfer Agents
Among the top 1 Depository Participants
Largest Network of Branches & Business Associates as SBI
Among top 10 Investment bankers
Largest Distributor of Financial Products
Adjudged as one of the top 50 IT uses in India by MIS Asia
Full Fledged IT driven operations
It has recently became MNC

22

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.

KARVY CONSULTANTS LTD.

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.

23

KARVY INVESTOR SERVICES LTD.

This wing of Karvy is registered with SEBI as a category 1 merchant banker
and is also recognized as a leading merchant banker of the country. It has
built its reputation by capitalizing the opportunities as and when it comes, be
it in corporate consolidations, mergers and acquisitions or corporate
restructuring. Involvement in raising resources for corporate or government
undertaking successfully over the past two decades has given it a
tremendous confidence boost.
(Karvy.com)

KARVY COMPUTERSHARE PVT. LTD.

This wing of Karvy has traversed wide spaces to tie up with the worlds
largest transfer agent, the leading Australian company Computershare
Limited. This company services more than 75 million shareholders across
7000 clients and makes its presence felt in over 12 countries across 5
continents. It has also entered into a 50-50 joint venture with Karvy. After
transferring completely to this new entity it has tried to enrich the financial
services industry as a whole. The worldwide network of Computershare
24

helps it to adapt to the international standards in addition to leveraging the

best technologies from all over the world.
(Karvy.com)

KARVY GLOBAL SERVICES LTD.

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.com)

25

KARVY COMTRADE LTD.

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 wellsystematized trading platform.
(Karvy.com)

KARVY INSURANCE BROKING PVT. LTD.

Karvy Insurance Broking Pvt. Ltd., provides both life and non-life insurance
products to retail individuals, high net-worth clients and corporates. With the
opening up of the insurance sector and entry of a large number of private
players in the business, it is in a position to provide tailor made policies for
different segments of customers.
(Karvy.com)

26

KARVY STOCK BROKING LIMITED

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 successful

27

portfolio management. It provides customized advisory services to help the

client make right financial moves which specifically suits their portfolios.
(Karvy.com)

KARVY FINANCE
KARVY, our parent group is one of Indias largest integrated financial
services providers with a 25+ year operating history. KARVY covers the
entire spectrum of financial services such as Stock Broking, Commodities
Broking / Finance, Registry Services, Depository services, Merchant
Banking & Corporate Finance, IPO distribution, Investment Banking, Realty
Services, Insurance Broking/Distribution, and Distribution of Financial
products like mutual funds, bonds, Personal Finance Advisory Services,
BPO / Technology Services, Wealth Management and Loans. KARVY has a
pan-India presence with over 575 offices in 375 locations across India and
overseas at Dubai and New York and has over 9,000 highly qualified staff.
The Karvy Customer:

Every 50th Indian is serviced by KARVY

Every 20th trade in stock market is done through KARVY

Every 10th Demat Account is held at KARVY

Every

6th

Investor

in

India

28

invests

through

Karvy

Keeping in line with Karvy credo to be a leading and preferred financial

services provider, our focus at Karvy Finance will be to provide the
complete spectrum of financial services products to our customers and build
a strong nationwide distribution footprint to emerge as the leader in Capital
Markets and Retail Finance in India

INVESTMENT BANKING
The Karvy Investor Services Limited (KISL) is a 100% subsidiary of Karvy
Stock Broking Limited. Karvy Group has evolved as integrated financial
services group of repute, offering variety of financial services to suit every
requirement of our clients. By virtue of its access to millions of Indian
Shareholders, along with companies, banks and financial institutions, Karvy
has in the process built an excellent reputation with regulatory and other
competent authorities. Our emphasis on the quality of the services we offer
has been instrumental in helping us to attain the leadership position in most
segments of the financial services sector.

29

KARVY COUSULTANT
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
we ventured into, we 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 we have created in the registry business, we believe that
we were best positioned to venture into this activity as a Depository
Participant. We 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, we service over seven lakh customer accounts in this
business spread across over 540 cities/towns in India and are ranked
amongst the largest Depository Participants in the country. With a growing
secondary market presence, we have transferred this business to KARVY
Stock Broking Limited (KSBL), our associate and a member of NSE, BSE .

30

KARVY DATA MANAGEMENT

KDMSL is emerging as a leading service provider in the areas of Egovernance processing, insurance back office processing, record keeping,
back office for BFSI clientele and is in pursuit to establish credentials in the
areas of Telecom processing, Data management requirements of large
corporates.
KDMSL is striving to achieve leadership position by tapping the Indian
retail sector boom, through a combination of our extensive branch network
and proprietary IT backbone. Needless to say, KDMSL is run as an
independent outfit with seasoned professionals on board, who have decades
of expertise in the industry.
KDMSL is a fully owned subsidiary of Karvy Stock Broking Limited
(KSBL), incorporated in April 2008 and is head quartered at Hyderabad.

KARVY CAPITAL

31

Karvy Capital is the Principal strategies, Products manufacturing and Retail

Debt markets business of Karvy Group. The principal strategies span across
a variety of asset classes and markets and are focused upon exploiting
market inefficiencies. The products manufacturing business currently covers
issuance of structured products and management of quantitative portfolios
for clients. The Retail debt markets business covers advisory and execution
of

corporate

bond

trades.

The idea behind Karvy Capital is simple As the Indian financial markets
evolve, various opportunities will emerge that have high return-on-skills.
This means the risk adjusted returns on such opportunities are likely to be
quite high. The systematic and sustained exploitation of these opportunities
however requires a skilled team with a high degree of focus and conducive
infrastructure. That is the domain in which Karvy Capital operates.
Mission
Our mission is to be the preferred strategic partner to our customer, and we
aim to achieve this leadership position by building an innovative,
enterprising and technology driven organization while setting new standards
of service delivery and business ethics.

Vision

32

Our vision is to collaborate with customers in providing end to end business

solutions through specialized competencies across business verticals and
internalize service quality using innovative approaches.

KARVY FOREX & CURRENCIES

Karvy Forex & Currency Private Limited (KFCL) is another business
enterprise of the prestigious Karvy group. Having laid a strong foundation in
Indian financial services, it is indeed a pleasure for the Karvy group to
venture into the currency derivatives segment. This enables us to provide
extended services to our esteemed customers, thereby making the group a
single
window
for
all
financial
services.
KFCL offers advisory and brokerage services for the Indian currency
derivative markets. We provide online trading platforms to our clients that
enable them to trade whenever they choose while receiving instant
professional support. With our powerful expertise in financial services that
exists across India, along with an enviable technological edge, we are all set
to bring to you the opportunity of investing in the rapidly growing currency
market. The currency derivatives market will be an added advantage to your
portfolio as it will help you to manage your price risks and add to your
investment
avenues.
Today, we have an extensive network throughout the country, with 225
branches
spread
across
180
cities.
Karvy Advantage:

Instant Quotes
In-depth Market Analysis
Hedging Capability
Wide Reach
Higher Leverage
24 X 7 Support
33

Personalized Services

KARVY REALTY
We, Karvy Realty India Limited (KRIL), are the real estate arm of one of
India's premier financial services group - the Karvy Group. Since our
creation in 2006, we have provided services to clients interested in real
estate transactions across different asset classes and geographies. We provide
end to end solutions in real estate ranging from transaction services,
investment advisory and management services.

Investment Banking Services

We provide investment banking services and work with a range of financial
products including debt and equity instruments to satisfy the different needs
of both the developer and investor. We assist companies and high net worth
individuals to lease and sell residential and commercial real estate, including
land parcels, by engaging prospective investors/developers on a case-to-case
basis, with a focus on timely delivery.

Type of client
Developers

Services provided
Provide structured finance in the form of debt/equity/quasi34

equity instruments to facilitate the development of high

quality projects
Individual/
Institutional
investors

Provide advisory services on the attractive opportunities

available in real estate in the form of yield deals,
debt/equity/quasi-equity investments in different real estate
asset classes

Investment process
Deal Sourcing
We primarily source our deals by leveraging on existing relationships with
clients, industry relationships and accessing Karvy Groups broad
network. Following the sourcing of the deal, we conduct a pre feasibility
study and an internal discussion on the deal.
Analysis and decision making
Following the pre feasibility study, we prepare a detailed proposal for the
investment committee and obtain their approval. We conduct due diligence
on all aspects of the transaction which include a thorough analysis of the
past history of the developer, the development of a detailed financial model
of the transaction and undertaking a study of adequate measures in risk
mitigation.
Channel and structure of funding

35

A structured financial product is developed to satisfy the requirements of the

developer as well as that of the investor. The product can be in the form of a
debt/equity/quasi-equity investment and a structure which is most efficient
under the considerations of law and tax is chosen. The various possible exit
options are evaluated and the product is finalized. Depending on the product,
we also provide the investor suitable asset management services so that they
can realize maximum value from the transaction.

Investment philosophy
Our teams rich background and experience in real estate investment
management and its structuring expertise help in ensuring that its investment
banking transactions are subject to the same underwriting standards as our
own proprietary investment transactions and thereby generate maximum
value for the investors.
We focus on the following:
i.

Relationships: We believe in a long term commitment rather than a

short term relationship

ii.

Knowledge: We believe in knowledge gained through primary/local

sources as well through secondary sources; as well as through
experience

iii.

Patience: We believe in accumulating steady returns rather taking

risks in speculative spikes

Real Estate Management Services

36

We manage real estate investments for clients having real estate holdings
in various locations and across asset classes. This would primarily focus
on the following:
i.

Portfolio management: We manage the asset portfolio by engaging to

realize the maximum value from a given set of assets. We would strive to
keep a balanced portfolio consisting of real estate properties from across
the country which would generate steady returns and have scope for
capital appreciation.

ii.

Property management: We also provide real estate property management

services where we help the client take care of his property. Based on the
requirements, we could help in leasing, selling, maintaining or
developing existing property.

Funding
According to CLSA, the total debt in the books of the developers as of
FY11 is over Rs. 80,000 Cr. With most developers continuing to being
optimistic about the real estate market and acquiring land and developing
projects, the gap in credit supply and demand has left them with lesser
options to arrange for funds. Most developers already have highly
leveraged balance sheets and are finding it increasingly tougher to
arrange for capital.
Thus with a mission of facilitating the realty sector's need for finance, we
are planning to set up a strong funding arm. This, subject to regulatory
approval, would be composing of the following: (i) Realty focused
NBFC and (ii) A Realty Fund

37

Realty Focused NBFC

We are planning and proposing to set up our Realty focused NBFC
business which will be focusing on Loan against Property for builders, as
secured lending is an intelligent way to provide loans which helps
builders to hold property for a longer period or can assure last-mile
funding. This Realty focused NBFC will be set up subject to regulatory
approvals
Realty Fund
We propose to try and start a Mezzanine Fund, subject to regulatory
approvals, having an investment objective of achieving balanced and
optimum returns by investing through equity and equity linked
instruments.

38

PRODUCT &
SERVICES

39

PRODUCTS
DEMATERIALIZED ACCOUNT (I-ZONE PLUS)
Demat refers to a dematerialized account. Though the company is under
obligation to offer the securities in both physical and Demat mode, you
have the choice to receive the securities in either mode. If you wish to have
securities in Demat mode, you need to indicate the name of the depository
and also of the depository participant with whom you have depository
account in your application. It is, however desirable that you hold securities
in Demat form as physical securities carry the risk of being fake, forged or
stolen.
Just as you have to open an account with a bank if you want to save your
money, make cheque payments etc, Nowadays, you need to open a Demat
account if you want to buy or sell stocks.
So it is just like a bank account where actual money is replaced by shares.
You have to approach the DPs (remember, they are like bank branches), to
open your demat account. Let's say your portfolio of shares looks like
this: 150 of Infosys, 50 of Wipro, 200 of HLL and 100 of ACC. All these
will show in your demat account. So you don't have to possess any physical
certificates showing that you own these shares. They are all held
electronically in your account. As you buy and sell the shares, they are
adjusted in your account. Just like a bank passbook or statement, the DP
will provide you with periodic statements of holdings and transactions.

40

Necessity of having Demat account

Nowadays, practically all trades have to be settled in dematerialized
form. Although the market regulator, the Securities and Exchange Board of
India (SEBI), has allowed trades of up to 500 shares to be settled in physical
form, nobody wants physical shares any more. So a Demat account is a
must for trading and investing.

Benefits of having Demat account

The benefits are:
1. Immediate transfer of securities
2. No stamp duty on transfer of securities
3. Elimination of risks associated with physical certificates such as bad
delivery, fake securities, etc.
4. Reduction in paperwork involved in transfer of securities
5. Reduction in transaction cost
6. Nomination facility
7. Change in address recorded with Karvy gets registered electronically
with all companies in which investor holds securities eliminating the
need to correspond with each of them separately
8. Transmission

of

securities

is

done

by

Karvy

eliminating

correspondence with companies

9. Convenient method of consolidation of folios/accounts
10.Holding investments in equity, debt instruments and Government
securities in a single account

41

11.Automatic credit into Demat account, of shares, arising out of

split/consolidation/merger etc.

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 advice & 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.

Advantages
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.

42

 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.
Provides comprehensive advisory service for smart investments.
Offers comprehensive product range.
Enables transaction in NSE, BSE, MCX and NCDEX.
Enables both cash and derivative trading in equities.
Enables trading in currency and commodity derivative.
Unlimited transactions in Mutual Funds.
Enables online application for IPOs.
Easy transfer of money through secured online payment.
Gateways with multiple banks ICICI, HDFC, IDBI, Axis, Bank of
Rajasthan.
Safe and secure transaction engine.

Instant Information Provider

Live market news

43

 Quality research help available live on the trading screen

Top analysts providing inputs on strategies and recommendations
SMS Alert facility for tracking investments
Updated information on personal finance through a free subscription
of FinaPolis
Portfolio tracker with quarterly portfolio statement
Seamless integration between bank, broking, MF and DP Accounts

44

Ease of Transaction

1. Provides Advisory Service in multiple products.

2. Uses top quality technology and also gives call center service for their
clients and other investors.
3. Widest network.

45

Account Maintenance Charges

The Value You Get
Then their
value will be

If these are not part of I-Zone Plus

Rs. 1,500/- Your MF transactions in a year (assumed to be

valued at Rs. 1,00,000)
Rs. 500/-

Normal Annual Maintenance charges for a Equity

Broking + Demat Account

Rs. 200/-

Normal Annual Charge for a Commodities

Broking Account
Rs. 1,500/- Market Price for an elementary health check up
Rs. 300/-

Subscription to KARVY FinaPolis magazine

Rs. 4,000/- Total Value Payable Upfront

* Calculated @ 1.5% of investment value, charged by a bank or a financial

product distributor as advisory fees.

The Value You Pay For

46

 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
Demat a/c is life-time free Transaction charges will be as applicable)

MUTUAL FUNDS

47

CONCEPT
A Mutual Fund is a form of collective investment that pools money from
many investors, who share common financial goals and invests their money
in stocks, bond, short term money market instruments and/or other
securities.
The income earned through these investments and the capital appreciations
realized are shared by its unit holders in proportion to the number of units
owned by them. Thus a Mutual Fund is the most suitable investment for the
common man as it offers an opportunity to invest in a diversified,
professionally managed basket of securities at a relatively low cost.

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

48

Types Of Mutual Fund

49

Open ended Mutual Funds

It is a type of mutual fund where there are no restrictions on the amount of
shares the fund will issue. If demand is high enough, the fund will continue
to issue shares no matter how many investors there are. Open-end funds also

50

buy back shares when investors wish to sell. Most of the mutual funds
available in the marketplace are open-end funds. Open-end funds
are generally managed actively and are priced according to their net asset
value (NAV). Open-end funds are wide-ranging. Some Open-end funds are
more conservative and provide consistent returns with low risk, and some
are more aggressive in seeking to make capital gains through constant
trading.

Close ended Mutual Funds

When an investment company issues a fixed number of shares in an actively
managed portfolio of securities, it is referred to as close ended mutual funds.
The shares are traded in the market just like common stock. The main
difference with closed-end funds is that market price of the shares is
determined by supply and demand and not by net-asset value (NAV).Its
stipulated maturity period ranges from 3 to 15 years.

INSURANCE
CONCEPT

51

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

used to hedge against the risk of a contingent loss. Insurance is defined as
the equitable transfer of the risk of a potential loss, from one entity to
another, in exchange for a premium.
Insurer, in economics, is the company that sells the insurance.
Insurance rate is a factor used to determine the amount, called the
premium, to be charged for a certain amount of insurance coverage. Risk
management, the practice of appraising and controlling risk, has evolved as a
discrete field of study and practice.
Sum Assured:
It is the amount of money an insurance policy guarantees to pay before any
bonuses are added.
Factors included in the calculation of sum assured are:
Date of birth
Gender
Duration
Health conditions
Job profile
Types Of Insurance

52

Types of Insurance

Life Insurance

Non Life/
General
Insurance

-Term
-Whole life
-Money
back
-Endowment
Assurance
-Pension
Plan
-Unit Linked
Product
(ULIP)

-Property
-Personal
-Lifestyle
-Package

(Wikipedia.com)

53

Life Insurance
All policies are not the same. Some give coverage for your lifetime and
others cover you for a specific number of years.
Following are the different types of life insurances:
Whole life
Term policy
Money pack
Endowment
Pension plan
ULIP

54

General Insurance
General insurance typically comprises any insurance that is not determined
to be life insurance. It is called property and casualty (P&C) insurance in the
U.S. General insurance policies, including automobile, accidents and
homeowners policies, provide payments depending on the loss from a
particular financial event.
Following are the different types of general insurances:
Property
Personal
Lifestyle
Package
(Wikipedia.com)

55

EQUITIES
CONCEPT
An equity share, commonly referred to as ordinary share, represents the form
of fractional ownership in a business venture.
Stockholders' equity is often referred to as the book value of the company,
and it comes from two main sources. The first and original source is the
money that was originally invested in the company, along with any
additional investments made thereafter.
The second comes from retained earnings that the company is able to
accumulate over time through its operations. In most cases, especially when
dealing with older companies that have been in business for many years, the
retained earnings portion is the largest component.
Factors that influence the stock prices:
Broadly there are two factors:
(1) Stock specific
(2) Market specific

56

The stock-specific factor is related to peoples expectations about the

company, its future earnings capacity, financial health and management,
level of technology and marketing skills.
The market specific factor is influenced by the investors sentiment towards
the stock market as a whole. This factor depends on the environment rather
than the performance of any particular company.
Events favorable to an economy, political or regulatory environment like
high economic growth, friendly budget, stable government etc. can fuel
euphoria in the investors, resulting in a boom in the market. On the other
hand, unfavorable events like war, economic crisis, communal riots,
minority government etc. depress the market irrespective of certain
companies performing well. However, the effect of market-specific factor is
generally short-term.
Despite ups and downs, price of a stock in the long run gets stabilized based
on the stock specific factors. Therefore, a prudent advice to all investors is to
analyze and invest and not speculate in shares.

Acquiring Equity Shares:

There are two methods:
You may subscribe to issues made by corporates in the primary
market. In the primary market, resources are mobilized by the
57

corporates through fresh public issues (IPOs) or through private

placements.
OR
You may purchase shares from the secondary market. To buy and sell
securities you should approach a SEBI registered trading member
(broker) of a recognized stock exchange.
(Wikipedia.com)

The documents required for opening an account with KARVY are:

PAN card no.
Address proof
Passport size photos
Cheque (initial one time investment amount)

58

BONDS
CONCEPT
A Bond is a long term contract under which a borrower agrees to make
payments of interest and principal, on specific dates, to the holders of the
bond.

The organization that sells a bond is known as the issuer. Of course, no one
would loan his or her hard-earned money for nothing. The issuer of a bond
must pay the investor something extra for the privilege of using his or her
money. This "extra" comes in the form of interest payments, which are made
at a predetermined rate and schedule
Bonds are known as "fixed-income" securities because the amount of
income the bond will generate each year is "fixed," or set, when the bond is

59

sold. No matter what happens or who holds the bond, it will generate exactly
the same amount of money.

Classification Of Bonds

BONDS

NON SLR
Non Statutory
Liquidity Ratio

SLR
Statutory Liquidity
Ratio

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

designated securities. The current SLR is 25%. Also, in SLR Banking
system is very important.
SLR Bonds constitute of:
Government securities/ Gilt/GOI (govt. of India) Bonds
SDL( State Development Loans)
T- Bills (Treasury Bills)
Designated SLR Bonds

60

Non SLR Bonds constitute of:

Public sector units bonds like:
IRFC (Indian Railway Finance Corporation)
Power Finance Corporation
NHAI
Bank Bonds
State Guarantee Bonds

61

DERIVATIVES
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.

62

Types of Derivatives

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

(and privately negotiated) directly between two parties, without going
through an exchange or other intermediary. Products such as swaps,
forward rate agreements, and exotic options are almost always
traded in this way. The OTC derivatives market is huge. According to
the Bank for International Settlements, the total outstanding
notional amount is USD 298 trillion.

Exchange-traded derivatives are those derivatives products that are

traded via specialized Derivatives exchanges or other exchanges. A
derivatives exchange acts as an intermediary to all related
transactions, and takes Initial margin from both sides of the trade to
act as a guarantee.

There are 3 kinds of Derivative contracts:

Futures Contract

Forward Contract

Options Contract

63

SERVICES
KSBL (KARVY STOCKBROKING LIMITED), offer services that are
beyond just a medium for buying and selling stocks and shares. Instead
KSBL provide services which are multi dimensional and multi-focused in
their scope. There are several advantages in utilizing Karvys Stock Broking
services, which are the reasons why it is one of the best in the country.
Its 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. Crucial information regarding
customer individual account balances are given as a constant feedback to
them, through daily reports delivered thrice in a day.
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.
The Post-session Report, the final report for the day, where the
market and the report itself is reviewed.
In addition, the specific industry reports prepared by Karvy Stock Broking
Limited give comprehensive information on various industries. They also
offer special portfolio analysis packages that provide daily technical advice
on scrips for successful portfolio management and provide customized
64

advisory services to help investors make the right financial moves that are
specifically suited to their portfolio.
These services have increasingly offered customer oriented convenience,
which KSBL provides to a spectrum of investors, high-networth or
otherwise, with equal dedication and competence. But this is not the final
destination and just a pathway to reach there.
Over the years KSBL have ensured that the trust of its customers is their
biggest returns. Factors such as its success in the Electronic custody business
has helped build on its tradition of trust even more. Consequentially its retail
client base has expanded very fast.
To empower the investor further KSBL have made serious efforts to ensure
that their research calls are disseminated systematically to all its stock
broking clients through various delivery channels like: e-mails, chat, SMS,
phone calls etc.
Their foray into commodities broking has been path breaking and KSBL is
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, its focus will be on the emerging businesses and to meet this
objective, KSBL has enhanced its manpower and revitalized its knowledge
base with enhanced focus on Futures and Options as well as the
commodities business.
(Karvy.com)

65

DIPOSITORY 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 has further set standards enabling comfort to
the investor by promoting paperless trading across the country and emerged
as the Top 3 Depository Participants in the country in terms of customer
service.
KSBL has established live DPMs (Depository Participant Modules), 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 the demat
division including technological enhancements like SPEED-e, makes the
response time quick and delivery impeccable. A wide national network
makes efficiencies accessible to all.
(Karvy.com)

66

DISTRIBUTION OF FINANCIAL PRODUCTS

The paradigm shift from pure selling to knowledge based selling drives this
industry today. With its wide portfolio offerings, Karvy occupies all
segments in the retail financial services industry.
The team of 1600 highly qualified and dedicated professionals, drawn from
the best academic and professional backgrounds is committed to maintaining
high levels of client service delivery. This has propelled this wing to grab 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 it has
enhanced the scope of its 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.
(Karvy.com)

67

ADVISORY SERVICES
Karvys retail brand Karvy the Finapolis', 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 of 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 Karvy has gained in the business over the years.
Another venture towards being investor-friendly is the circulation of a
monthly magazine called Karvy - the Finapolis'. It covers the latest market
news, trends, investment schemes and research-based opinions from experts
in various financial fields.
(Karvy.com)

68

COMPETITORS OF KARVY
KARVY serves a vast range of all financial products like advisory services,
Mutual funds, Bonds, Insurances etc, so all the companies who offer these
services are the competitors of the Karvy. There are many competitors for
KARVY on this basis and almost all of them offer the services which Karvy
offers.
Few Major competitors are:
1.

India bulls

2.

Motilal oswal securities

3.

ICICI Direct

4.

SSKI Ltd. (Sharekhan)

5.

Kotak Securities

6.

India Infoline

To get first hand details about them we visited a few stock broking houses
and talked about the financial instruments available with their company,
their charges for investments and the documents required by them.
Followings are the list of the companies we visited:
India Bulls
Sharekhan
ICICI Direct
Motilal Oswal Securities
India Infoline

69

COMPARATIVE ANALYSIS
After the whole study, I find out the following results:

Results On The Basis Of Charges

There are two types of transactions:1. Intraday
2. Delivery

All the figures are in paisa/100 rupees.

70

Comment
According to the survey ICICI Direct and Indiabulls charge maximum
brokerage as compared to others whereas India Infoline Ltd. and Karvy
Stock Broking Ltd. charges least if taken on an average.

Results On the basis of Account opening Charges

Karvy Stock Broking Ltd: - There is a charge of Rs. 500 for opening a
DEMAT account. You can deposit an additional amount for trading purpose
after opening the account.

Sharekhan Ltd: - There is a charge of Rs. 375 and requires margin

money of Rs. 5000 for trading purpose.

ICICI direct: - A 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.

IndiaInfoline: - There is a nominal charge of Rs. 500 only towards stamp

duty, legal and processing fees for opening the account. This includes the
registration and account opening charges. Bank and Depository Participant
(DP) account opening charges, if applicable, are payable separately.

71

Indiabulls: - Account opening charges are Rs. 900. There is no AMC and
no margin money is required.

Comment: - India Bulls charge maximum account opening charges but

Karvy Stock Broking LTD and India Infoline charges least amount which
makes them better than others.

Here is the useful comparison between ICICI Direct, Sharekhan,

IndiaInfoline, Indiabulls and Karvy Stock Broking Ltd. online trading
account in India to trade stocks.

ICICI Direct
The brokerage involved is very high (0.75%).You cannot do day trading as a
result. Also, the options are less flexible. If you go for intraday trading and
the stock price falls, you cant take the delivery and have to sell at lower
price. If you go for buy today sell tomorrow feature, you cant sell the same
day and the high brokerages eat away your profit.
Also whenever there is huge volatility in the market, the site stops working
most of the time.

Sharekhan

72

Generally Sharekhan charges 3 paise on intraday excluding taxes and after

including taxes it comes out 5 paise. On delivery 30 paise, Sharekhan
interface is quite complicated and has second-rate customer care.
IndiaInfoline
Best for very small investors, terminal is too fast, as well as they offer 6th
time exposure of your holding, no need to cash balance in your account.
There is no customer care number of IndiaInfoline where a person can call
and tell his problem. The customer care number on the website is useless.
Trading software is very easy to operate.
Indiabulls
They charge on Deilvery-50 paise and Intra-10 paisa which is highest
brokerage among all, which makes it fall last in terms of account charges
and brokerage fees.
Karvy Stock Broking Ltd.
They have least account opening charges and have lower brokerage fees than
many others.
Customer care service is also good with
Convenience - Proximity to your office / residence, business hours.
Comfort - Reputation, past association with the organization, all

types of financial services.

Services Quality timely services.

In order to obtain the complete list of branch locations and the charge
structure, you may log on to www.Karvy.com or else you may write to
mailmanager@Karvy.com
73

Comment: - Karvy Stock Broking Ltd. has all the features which could be
needed by an investor and moreover there advisory service is excellent in
which usually other broking houses lacks behind.

FINDINGS & ANALYSIS

74

1) Do you know about investment options available?

COMMENT
Only 80% people knows the exact meaning of investment, the remaining
20% take his/her residential property as an investment.

2) Most preferable investment scenario.

75

COMMENT
Today scenario is changed so that most area covered by the
derivative and securities market. It is 28% of the total population.

76

3) What is the basic purpose of your investment?

INVESTMENT PURPOSE

PERCENTAGE

Liquidity

30 %

Returns

25 %

Capital Appreciation

10 %

Tax Benefits

20 %

Risk Covering

5%

Others

10 %

TOTAL

100

COMMENT
75% people are interested in liquidity, returns and tax benefits. And
remaining 25% are interested in capital appreciations, risk covering, and
others.

77

4) Most important things you take into your mind while making
investments?

COMMENT
75% people are considered the both factors risk as well as returns but, only
25% considered the risk or returns factor.

78

5) Do you have any Demat and Trading account?

COMMENT
Only 60% respondents have Demat and Trading account and remaining 40%
says no because they dont know why shares move up and down.

79

6) In which company you have d-mat and trading account?

COMPANY

PERCENTAGE

Sharekhan

30 %

India Infoline

20 %

ICICI Direct

18 %

Indiabulls

10 %

Karvy

18 %

Others
TOTAL

6%
100 %

COMMENT
In Sharekhan Ltd 30% respondents have Demat & trading account because
of better services and no annual maintenance and other charges.

7) Specify the reason of satisfaction with the current broking

house.

80

SATISFACTION

PERCENTAGE

Operating Expenses

18 %

Services

25 %

Brokerage

57 %

TOTAL

100 %

Comment
57 % of customers want more profit that is why they are focused on
Brokerage charges.

81

8) Are you satisfied with your present broking company?

COMMENT

There are 35% people who are not satisfied with there current
broking houses because of the advisory service and customer care
service they are providing.

82

9) Awareness related to security markets.

COMMENT
On that basis, we conclude that 17% people know nothing about the
securities investments and 75% people have partial knowledge about it, so,
some promotional activities are required for increasing the awareness about
Security market.

FINDINGS
83

 According to the survey most of the customers of Karvy stock

Broking Ltd says that it has first-rate advisory.
Coming to faith 60% says Karvy Stock Broking Ltd is better than
others stock brokers due to customers satisfaction.
Lack of promotional activities undertaken by Karvy Stock Broking
Ltd. in Lucknow region.
Main purposes of investments are returns & liquidity.
Investors take risk as well as returns into their mind while making the
investment.
Businessmen are more interested in the stock market than the others.
People want to invest their money in the security market but they
havent the proper knowledge.
People are not aware of hedging in stock market.
People pay more emphasis on brokerage than service provided by
brokerage houses.

84

SUGGESTIONS
Commitment should be equalized for every person.
Provide the facility of free demonstrations for all.
Some promotional activities are required for the awareness of the
customer.
People at young age should be encouraged to invest in stock market.
Seminars should be held for providing information to prospective and
present customers.

85

CONCLUSION
On the basis of the study it is found that Karvy Stock Broking Ltd is better
services provider than the other stockbrokers because of their timely
research and personalized advice on what stocks to buy and sell. Karvy
Stock Broking Ltd. provides the facility of trade as well as relationship
manager facility for encouragement and protects the interest of the investors.
It also provides the information through the internet and mobile alerts that
what IPOs are coming in the market and it also provides its research on the
future prospect of the IPO.
Study also concludes that people are not much aware of commodity market
and while its going to be biggest market in India.
The company should also organize seminars and similar activities to
enhance the knowledge of prospective and existing customers, so that they
feel more comfortable while investing in the stock market.

86

APPENDIX
Questionnaire

Date:
NAME
OCCUPATION
AGE
CONTACT NO.

1. Do you know about investment options available?

YES
NO
2. Most preferable investment scenario.
BANKS
DERIVATIVES AND SECURITIES MARKET
INSURANCE
BONDS
REAL ESTATE
OTHERS

3. What is the basic purpose of your investment?

LIQUIDITY
RETURNS
87

CAPITAL APPRECIATION
TAX BENEFITS
RISK COVERIN
OTHERS

4. Most important things you take into your mind while making
investments?
RISK
RETURNS
BOTH
5. Awareness related to security markets.
COMPLETE
PARTIAL
NILL
6. Do you have any Demat and Trading account?
YES
NO
7. In which company you have d-mat and trading account?

KARVY
SHAREKHAN
ICICI DIRECT
INDIA INFOLINE
INDIABULLS

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

OPERATING EXPENSES
SERVICES
BROKERAGE
88

9. Are you satisfied with you present broking company?

YES
NO
10. What is the reason? Please specify.
SERVICES
BROKERAGE
OPERATING EXPENSES
OTHERS

BIBLIOGRAPHY

"Introduction." www.karvy.com.
http://www.karvy.com/contactus/overview

"History." www.karvy.com.
http://www.karvy.com/contactus/earlydays

Milestone." www.karvy.com.
http://www.karvy.com/contactus/milestone

89

"Achievements." www.karvy.com.
http://www.karvy.com/contactus/achievements

"Karvy group of Companies." www.karvy.com.

http://www.karvy.com/contactus/karvygroupofcompanies

"Stock Broking Service." www.karvy.com.

http://www.karvy.com/contactus/karvygroupofcompanies

"Depository Participants." www.karvy.com.

http://www.karvy.com/contactus/stockbrokingservice

"Distribution Of Financial Products." www.karvy.com.

http://www.karvy.com/contactus/karvystockbrokingservic
e

"Advisory Services." www.karvy.com.

http://www.karvy.com/contactus/karvystockbrokingservic
e

90

"Quality Policy." www.karvy.com.

http://www.karvy.com/contactus/overview

"Mutual Funds." www.amfiindia.com.

http://www.amfiindia.com/showhtml.asp?page=mfconcept

"Mutual Funds." www.myiris.com.

http://www.myiris.com/showhtml.asp?page=mf

"Mutual Funds." www.mutualfundsnavindia.com.

http://www.mutualfundsnavindia.com/rankings2007/show
html.asp?page=mf

"Bonds." www.amfiindia.com.
http://www.investopedia.com/articles/02/120202.asp

"Insurance." www.amfiindia.com.
http://www.imfiindia.com/articles/02/120247.asp

"Insurance." www.wikipedia.com.
http://www.Wikipedia.com/articles/02/120247.asp

"Derivatives." www.finpipe.com.
http://www.finpipe.com/derivglossary.htm
91

"Equity." www.wikipedia.com.
http://en.wikipedia.org/wiki/Equity

92