INTRODUCTION OF KARVY GROUP

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

Operations
Karvy Stock Broking Ltd (Karvy Stock Broking), a venture of the Karvy group, was established in 1995.It has memberships in the NSE as well as in BSE. In 1998, the company became a DP with NSDL and CDSL.It services over 20 million individual investors and over 300 corporates. The companys offerings cover stock broking, depository services, distribution of financial products like mutual funds, bonds, and commodities broking. The company also offers financial advisory services. Karvy Stock Broking circulates a monthly magazine Finapolis that provides information on market trends, investment options, opinions etc. During the first ten months of 2007, the company added 48,430 new accounts in addition to 1540 e broking accounts. It has 3,910 employees, 33 sub-brokers and 1700 trading terminals in 8 cities along with 37 branches as on Oct 31 2007.

Future Plans
Karvy plans to enter into JVs in India and abroad. It is also planning to enhance its institutional and FII client Base.

KARVY GROUP COMPANIES

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

Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice, flows freely towards attaining diverse goals of the customer through varied services. Creating a plethora of opportunities for the Customer by opening up investment vistas backed by research-based advisory services. Here, growth knows no limits and success recognizes no boundaries. Helping the customer create waves in his portfolio and empowering the investor completely is the ultimate goal. It is an undisputed fact that the stock market is unpredictable and yet enjoys a high success rate as a wealth management and wealth accumulation option. The difference between unpredictability and a safety anchor in the market is provided by in-depth knowledge of market functioning and changing trends, planning with foresight and choosing one’s options with care. This is what we provide in our Stock Broking services. We offer services that are beyond just a medium for buying and selling stocks and shares. Instead we provide services which are multi dimensional and multi-focused in their scope. There are several advantages in utilizing our Stock Broking services, which are the reasons why it is one of the best in the country.

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 6 lakhs customer accounts in this business spread across over 250 cities/towns in India and are ranked amongst the largest Depository Participants in the country. With a growing secondary market presence, we have transferred this business to Karvy Stock Broking Limited (KSBL), our associate and a member of NSE, BSE and HSE.

The paradigm shift from pure selling to knowledge based selling drives the business today. With our wide portfolio offerings, we occupy all segments in the retail financial services industry. A 1600 team of highly qualified and dedicated professionals drawn from the best of academic and professional backgrounds are committed to maintaining high levels of client service delivery. This has propelled us to a position among the top distributors for equity and debt issues with an estimated market share of 15% in terms of applications mobilized, besides being established as the leading procurer in all public issues. To further tap the immense growth potential in the capital markets we enhanced the scope of our retail brand, Karvy the Finapolis , thereby providing planning and advisory services to the mass affluent. Here we understand the customer needs and lifestyle in the context of present earnings and provide adequate advisory services that will necessarily help in creating wealth. Judicious planning that is customized to meet the future needs of the customer deliver a service that is exemplary. The

market-savvy and the ignorant investors, both find this service very satisfactory. The edge that we have over competition is our portfolio of offerings and our professional expertise. The investment planning for each customer is done with an unbiased attitude so that the service is truly customized. Our monthly magazine, Finapolis, provides up-dated market information on market trends, investment options, opinions etc. Thus empowering the investor to base every financial move on rational thought and prudent analysis and embark on the path to wealth creation.

Recognized as a leading merchant banker in the country, we are registered with SEBI as a Category I merchant banker. This reputation was built by capitalizing on opportunities in corporate consolidations, mergers and acquisitions and corporate restructuring, which have earned us the reputation of a merchant banker. Raising resources for corporate or Government Undertaking successfully over the past two decades have given us the confidence to renew our focus in this sector. Our quality professional team and our work-oriented dedication have propelled us to offer value-added corporate financial services and act as a professional navigator for long term growth of our clients, who include leading corporates, State Governments, foreign institutional investors, public and private sector companies and banks, in Indian and global markets. We have also emerged as a trailblazer in the arena of relationships, both at the customer and trade levels because of our unshakable integrity, seamless service and innovative solutions that are tuned to meet varied needs. Our team of committed industry specialists, having extensive experience in capital markets, further nurtures this relationship. Our financial advice and assistance in restructuring, divestitures, acquisitions, demergers, spin-offs, joint ventures, privatization and takeover defense mechanisms have elevated our relationship with the client to one based on unshakable trust and confidence.

We have traversed wide spaces to tie up with the worlds largest transfer agent, the leading Australian company, Computershare Limited. The company that services more than 75 million shareholders across 7000 corporate clients and makes its presence felt in over 12 countries across 5 continents has entered into a 50-50 joint venture with us. With our management team completely transferred to this new entity, we will aim to enrich the financial services industry than before. The future holds new arenas of client servicing and contemporary and relevant technologies as we are geared to deliver better value and foster bigger investments in the business. The worldwide network of Computershare will hold us in good stead as we expect to adopt international standards in addition to leveraging the best of technologies from around the world. Excellence has to be the order of the day when two companies with such similar ideologies of growth, vision and competence, get together.

The specialist Business Process Outsourcing unit of the Karvy Group. The legacy of expertise and experience in financial services of the Karvy Group serves us well as we enter the global arena with the confidence of being able to deliver and deliver well. Here we offer several delivery models on the understanding that business needs are unique and therefore only a customized service could possibly fit the bill. Our service matrix has permutations and combinations that create several options to choose from. Be it in re-engineering and managing processes or delivering new efficiencies, our service meets up to the most stringent of international standards. Our outsourcing models are designed for the global customer and are backed by sound corporate and operations philosophies, and domain expertise. Providing productivity improvements, operational cost control, cost savings, improved accountability and a whole gamut of other advantages. We operate in the core market segments that have emerging requirements for specialized services. Our wide vertical market coverage includes Banking, Financial and Insurance Services (BFIS), Retail and Merchandising, Leisure and Entertainment, Energy and Utility and

Healthcare.

At Karvy Commodities, we are focused on taking commodities trading to new dimensions of reliability and profitability. We have made commodities trading, an essentially age-old practice, into a sophisticated and scientific investment option. Here we enable 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. Our technological and infrastructural strengths and especially our street-smart skills make us an ideal broker. Our service matrix is holistic with a gamut of advantages, the first and foremost being our legacy of human resources, technology and infrastructure that comes from being part of the Karvy Group. Our wide national network, spanning the length and breadth of India, further supports these advantages. Regular trading workshops and seminars are conducted to hone trading strategies to perfection. Every move made is a calculated one, based on reliable research that is converted into valuable information through daily, weekly and monthly newsletters, calls and intraday alerts. Further, personalized service is provided here by a dedicated team committed to giving hassle-free service while the brokerage rates offered are extremely competitive

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

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

KARVY Realty & Services (India) Limited (KRSIL) is engaged in the business of real estate and property services offering value added property services and offers individuals and establishments a myriad of options across investments, financing and advisory services in the realty sector. Promoted by the KARVY Group of companies, Indias largest integrated financial services company. KARVY Realty & Services India Limited carries forward its legacy of trust and excellence in investor and customer services delivered with a passion for services and the highest level of quality that align with global standards. KARVY Realty & Services (India) Limited welcomes you to take a reality check on realty options that you can be rest assured of and of course profit from.

MANAGAMENT AND DIRECTORS

C Parthasarathy, Chairman & Managing Director

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.

M Yugandhar, Managing Director

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.

M S Ramakrishna, Executive Director

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.

MISSION AND VISION OF THE COMPANY

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 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.

KARVYS SERVICES

Today karvys services are vouched by a well satisfied client base of 5.5 lacs plus customer base served thru our 120 branches (governed by 20 Regional Offices) spread across whole of India. Ever growing channel partner network of 5800+ registered sub brokers as on today (highest in terms of Regd. Subbrokers attached to any member in the industry) is the testimony to our business culture. Its business philosophy of ethical practice and transparency in its

dealings with customer interest above our own and to keep up the promises made are the key elements to keep its customers happy. Further a commitment to offer world class products and service which will exceed the expectation of our customer will ensure a smile on their faces.Its IT infrastructure is viewed as a strategic function in our business and not justan enabler which indicates the importance we give to IT, that is the simple reason why our Regional hubs operate with state of the art I.T. infrastructure which ensures best quality service to all channel partners in the region with highend quality of connectivity even to the remotest areas via Cable net / Dialup / ISDN / Lease Lines / ADSL / FWP / VSat etc is provided.

KARVY in Equities:
Trading is done under NSE,BSE,MCX,NCDEX and CDX

Equity:
Equity is a share in the ownership of a company. It represents a claim on the companys assets and earnings. As you acquire more stock, your ownership stake in the company increases. The terms share, equity and stock mean the same thing and can be used interchangeably. Holding a companys stock means that you are one of the many owners (shareholders) of a company, and, as such, you have a claim (to the extent of your holding) to everything the company owns. Another extremely important feature of equity is its limited liability, which means that, as a part- owner of the company, you are not personally liable if

the company is not able to pay its debts.

Characteristics of equity

Equity is unsecured and a high risk-return investment Equity remains in perpetual existence Limited liability

2.Derivatives :
Derivatives are financial instruments that derive their value from an underlying security or asset. The underlying could be equity shares or an index, a commodity, a currency or the exchange rate, bonds; etc.Derivative product derives its value from an underlying asset and yet has a price and an identity of its own. Derivative products have more variants than any other financial products since they have been created to meet a variety of niche needs. There are various derivative products, which derive their value from equity shares or an index, a commodity, a currency or the exchange rate, bonds, etc. These derivative products vary according to their structure and terms and conditions. The most popular derivative products are Forwards, Futures, Options, Warrants and Swaps. Some of these are short term in nature while others are long term. Online Trading: Karvy offers several user-friendly services to customers so that they can manage their stock portfolio. Including, online capabilities linked to an information database to help customers invest, confidently. Our e-broking services are specially designed for the net-savvy traders and investors who prefer operating from their home or office, through the internet. NRI Services: Living in a foreign country never loosens the thread that binds you to your homeland. Which is why, Angel Broking understands the varied needs of the NRIs, and value their patronage. We offer a bouquet of products and services for NRIs. NRI services desk for personalized assistance to NRI and PIO clients Dedicated offline equity dealing desk

Online equity trading platforms Depository services 24x7 back office NRI investment advisory desk PMS IPO and mutual funds Insurance and personal loan solutions Support for banking PIS account

Depository Services:Experience the most efficient, risk-free and prompt depository service with karvy a registered depository participant with the apex depository in India, CDSL. Automated pay-in facility. Access information anytime, anywhere. Quarterly demat statements with valuation. Statements on demand. View Demat A/c statement online. Competitive transaction charges.

Investment Advisory: The most adept investors know that mapping the financial market cannot be timed effectively. Which is why, the role of a professional advisor is crucial. Investment decisions without an experts advice would be like treating an ailment without the help of a doctor. At Angel, clients are provided with planning-based advisory services that adhere to a highly disciplined approach targeting to enhance returns, minimize risk and diversify the portfolio. Supported by a dedicated research team comprising of 12 sector special analysts and a Research Head, Angel follows a client-centric approach to offer customized solutions. IPO: When private companies i.e. companies that are wholly owned by their promoters, invite the public to subscribe to their shares, this issue of shares is called an Initial Public Offering (IPO). The shares issued could be in the form of fresh equity and/or the promoters sell a portion of their equity to the public. These shares are then listed on a stock exchange where they can be bought and sold by investors. IPOs are a very popular way of investing in the stock market as they allow investors a simple entry route to buying stocks. Initial Public Offering, when chosen carefully, can offer great returns. One needs to pick the right companies and make an early investment. Angel helps you to invest in the primary market through the IPO services.

COMMODITIES:- Commodities mean rice, wheat, sugar, gold etc. Commodities, can be now traded on the Indian exchanges. It has always been traded in the Global exchanges, now it is your turn to experience the power of commodities. The items produced by different producer are considered equivalent if they conform to a predetermined standard. It is this underlying standard or specifications that defines the commodity and not any quality inherent in the particular product.

KARVY IN COMMODITIES:

KARVyS PORTFOLIO MANAGEMENT SERVICES:

It gives your portfolio the edge by skillfully sifting through available investment opportunities to help you reduce risk and maximize your returns; even as you are left with ample time to focus on more pressing matters. Portfolio management is all about strengths, weaknesses, opportunities and threats in the choice of debt vs. equity, domestic vs. international, growth vs. safety, and many other tradeoffs encountered in the attempt to maximize return at a given appetite for risk. Our portfolio management service is well suited for high-net worth customers: Who are investing in Indian Equities? Who desire create wealth over longer period who appreciate a higher level of service.

E-Broking:

Unique Online Trading products customized to suit different Investment / Trading needs : karvy Investor / karvy Trade karvy Diet karvy Anywhere USPs of our broking services Multiple exchanges on a single screen BSE,NSE, NSE F&O, MCX & NCDEX Hot keys similar to brokers terminal Streaming quotes Indepth research & technical charts Intraday calls 24x7 Backoffice Auto payin of shares Instant transfer of funds Highly secure & confidential

Our Unique Strengths: Marketing support to channel partners karvy values the important role of its Intermediaries Seminars by our eminent investment strategists, to disseminate information about investment strategies Training Programs to upgrade the knowledge base & competency levels of Its employees, channel partners & even our end customersOur Vision / Business Philosophy / QQ Policy are customer centric and our motto is to make our customer smile.

Options:
An option is a contract, which gives the buyer the right to buy or sell shares at a specific price, on or before a specific date. For this, the buyer has to pay to the seller some money, which is called premium. There is no obligation on the buyer to complete the transaction if the price is not favorable to him.

To take the buy/sell position on index/stock/options, he/she have to place certain % of order value as margin. With options trading, he/she can leverage on his/her trading limit by taking buy/sell positions much more than what he/she could have taken in cash segment. The buyer of a call option has the right but not the obligation to purchase the underlying assest at the specified strike price by paying a premium whereas the seller of the call has the obligation of selling the underlying Assets at the specified strike price. By paying lesser amount of premium, he/she can create positions under OPTIONS and take advantage of more trading opportunities.

KARVY IN MUTUAL FUNDS:

Thinking of diversifying your portfolio? Mutual fund is the excellent way of doing so. karvy welcomes you to its Mutual fund center that strives to meet all your mutual fund investment needs. It comes with a wide spectrum of investment schemes from all major mutual fund houses.

Meaning of Mutual Funds: A mutual fund is a company that pools money from many investors and invests the money in stocks, bonds, shortterm moneymarket instruments, other securities or assets, or some combination of these investments. Mutual Funds are essentially investment vehicles where people with similar investment objective come together to pool their money and then invest accordingly. SEBI defines mutual funds as 'A fund established in the form of a trust to raise money through the sale of units to the public or a section of the public under one or more schemes for investing in securities, including money market instruments, or gold or gold related instruments.' A Mutual Fund will have a fund manager who is responsible for investing the pooled money into specific securities (usually stocks and bonds). When you invest in a MF, you are buying shares (or portions) of the MF and become a shareholder of the fund. Mutual Funds (MFs) are considered a good route to invest and earn returns with reasonable safety. Some of the other major benefits of investing in them are: Number of available options: equity funds, debt funds, gilt funds and many others are available that cater to the different needs of an investor. Diversification: Mutual funds diversify the risk of the investor by investing in a basket of various stocks. Managed by Skilled Professionals: A team of professional fund managers manages them with indepth research inputs from investment analysts. Liquidity: When in need of liquidity, the money can be withdrawn or redeemed at the Net Asset Value related prices anytime, without much reduction in yield (unlike penalty on premature fixed deposit withdrawal). Some mutual funds however, charge exit loads for withdrawal within a specified period. Well Regulated: All investments have to be accounted for & decisions judiciously taken. SEBI acts as a true watchdog through regulations, designed to protect the investors' interests and impose penalties on the AMCs at fault. Transparency: Being under a regulatory framework, mutual funds have to disclose their holdings, investment pattern and all the information relating to the investment strategy, outlooks of the market and scheme related details to all investors frequently to ensure that transparency

exists in the system. Flexible, Affordable and a Low Cost affair and Tax Benefits: Mutual Funds provide the benefit of cheap access to expensive stocks.

KARVY IN LIFE INSURANCE:

Ensure your familys well-being. Secure their future with a life insurance policy. No financial planning is complete without life insurance. KARVY realises this fact and has taken a sincere effort to bring life insurance services at your doorstep. KARVY offers an array of life insurance products to meet the growing insurance requirements. KARVY also deals in life insurance .It has tie up with Birla sun life, future generali,united india insurance & going to tie up with LIC as well.

DEMAT AND TRADING

Dematerialization and trading in the demat mode is the safer and faster alternative to the physical existence of securities. Demat as a parallel solution offers freedom from delays, thefts, forgeries, settlement risks and paper work. This system works through depository participants (DPs) who offer demat services and the securities are held in the electronic form for the investor directly by the Depository. karvy depository Services offers dematerialization services to individual and corporate investors. We have a team of professionals and the latest technological expertise dedicated exclusively to our demat department, apart from a national network of franchisee, making our services quick, convenient and efficient. At karvy, its commitment is to provide a complete demat solution which is simple, safe and secure. Floating of shares The way to invite the share capital from the public is through a 'public issue'. Simply stated, a public issue is an offer to the public to subscribe to the share capital of a company. Once this is done, the company allots the shares to the applicants as per the law and thus shares come into existence. a) Necessity of demat a/c for obtaining IPO/shares

It is not compulsory in all the cases. It is required only if the issue size is more than Rs 10 crore, then you have to apply for Demat shares only. Even if the issue size is less than Rs 10 crore it is advisable to apply for shares in the Demat mode as shares are tradable only in Demat mode, apart from other benefit of Demat.

Mean by Demat shares Demat is the first five words of Dematerialization. Earlier shares were dealt in physical form now shares are trasnsacted in dematerialized form. Physical shares are in paper form and have distinctive number. In case of Demat shares, shares are kept in electronic forms with Depository Participant (DP). Unlike physical shares, Demat shares cannot be differentiated and they are fully fungible. Meaning of Depository A depository holds shares and other securities of investors in electronic form. Through Depository Participants (DPs), it also provides services related to transactions in securities. Its structure and functioning are similar to the Bank. Presently in India, there are two depository viz. National Securities Depository Limited (NSDL) and Central Depository Services (I) Limited (CDSL). Both of them are registered with SEBI. Meaning of DP DP is a member of a Depository who offers its services to hold securities of Investors (Beneficial Owners) in dematerialized form. DP is like a Bank branch. It is an agent of the depository. DP works as an interface between Depository and Investors. DPs are required to be registered with SEBI. If an investor wants to avail the services offered by Depository, he has to open a Demat account with DP similar to opening of a bank account with a branch of the bank.

OBJECTIVES OF THE STUDY AND RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVES:

To have knowledge of STOCK MARKET.

To have the prelude of the karvy stock Broking Ltd.

To study the working of various functional areas of karvy stock Broking Ltd.

To measure the satisfaction of customers about the Services provided by the karvy .

To find out ways to strengthen the efficiency and effectiveness of karvy stock broking ltd.

To find out the comparison of various brokerage houses.

To get knowledge about working of corporate sector.

SECONDARY OBJECTIVES:

To get the customer feedback for further improvement of the effectiveness of the services of karvy stock Broking Ltd..

To have the knowledge of STOCK MARKET documentation.

To have the knowledge of Needs of customer.

c)SWOT Analysis

A SWOT analysis focuses on the internal and external environments, examining strengths and weaknesses in the internal environment and opportunities and threats in the external environment. STRENGTHS

Services As a product Karvy is a extremely innovative product with very less cost. Services like online trading facility, institutional and domestic broking, customized research reports with almost 80% efficiency etc give Karvy an edge over its competitors. Karvy provides other support services that make retail investors more confident and assured with their trading. SMS alerts (allowing traders and investors to make the most of the available opportunities), Softer, intangible features like imagery, equity driving preference. Through efficient trading processes Investors can place their orders directly on the Internet, do all the information seeking and basically own the investing process.

Products Companys product line is quite flexible in the sense that there is a product for every kind of

investors. Also all the products cover all the loop holes of all the products offered by the other competitors like low cost, user friendly online trading services etc.

Weakness
Branding Though the company has a efficient products but large part of investment interested population does not know the company. The most basic expectation for a trader or investor when one begins trading is that one must get timely delivery of shares and proceeds from sale of shares. Also ones cash balances with the broker must be safe and secure. Though this confidence in the broker comes with time and experience, good and transparent practices also play a major role in imbibing confidence in traders. Competition from banks Most of the banks due to good branding have the faith of the customers of their banking database. So they enjoy the liberty of huge database and customers find it more reliable to trade there rather than with an unknown broker. Also banks like HDFC Bank and ICICI Bank have the advantage of linking the trading accounts of their customers to saving accounts. This makes trading easier, and at the same time a trader withdraws exactly as much money from his account as is needed to complete the trade. Similarly sales proceeds are credited directly to saving account.

Opportunities

The external environment analysis may reveal certain new opportunities for profit and growth.

Ever-increasing market After the NSE brought the screen based trading system stock markets are now more secured which has attracted lot of retail investors and the demand is increasing day by day. This has

resulted in improved liquidity and heavy volumes on transactions. Karvy is one of the early entrants here. As to how much it will roar and how swift it can swoop on the market, the future alone can answer such queries. Karvy has been a mega player and is known for being a mover of stocks. It is also known for putting big deals through and enjoys good networking with the FIIs. It has been dynamic enough to move with the times and capture the opportunities that the market throws up from time to time. Improving Technology In country like India technology is always improving which gives the company a chance to keep on improving their product with time whereas for the small players like local brokers it will be difficult to keep the same pace as the changing technology. Also with SEBI lying down some strict guidelines small brokers are finding it harder to retain the customers with no research department. The traditional business model is highly dependent on a large network of sub-brokers, and many established players may not have systems (technology, customer service, etc.) capable of directly servicing so many retail customers. Unfulfilled needs of the customers With so many competitors offering their products in the market but no one is able to completely satisfy the customers. Some have the problem of lack of information or some were scared of volatility of the stock markets. Karvy has the opportunity to tap this unsatisfied set of customers and to make hold in the market. The Internet serves to break all barriers to information, as it offers an extremely hassle-free investing platform. And, Karvy hopes to fully utilize and capitalize on this platform. This original idea by Karvy itself was born out of the consumer's need for a more transparent, easy to understand and convenient option of investing in stocks. Education Level The education level in the country is improving year after year as far as technology goes. With that the understanding of the stock market is also increasing and a lot of retail investors are steeping in the market which is being shown by increasing volumes, transactions and indices.

Threats

New Competitors A lot of new competitors are trying to enter the market in this bullish run to taste the flavor of this cherry. This is creating a lot of competition for large players like karvy and it is creating little confusion in the minds of the customers about the services provided by the broker. Also many banking firms are entering into the market with huge investment. Competitors like ICICI, KOTAK, HDFC, 5-paisa fortune,etc. are posing a lot of threats to the company. Technology based business Online trading is totally based on the technology, which is quite complex. Typically, the technology solution has to start from the Internet front-end (or the screen that you see when you begin trading). Then it needs to get into the 'middle tier' of risk management systems that assess data from banks and depository participants (DP), calculate client risk at that point in time, and give the 'Go/No go' advice to the trade. So technology is a kind of threat because unless until it is working properly it is good but Internet is not that safe. Though a lot of cyber laws are being made but not yet executed.

Conclusion and Recommendations

CONCLUSION:

As my stated objective is to draw conclusion on the work I have executed at the time of my summer training. I have concluded the whole findings in the following points.

PART-A Through my study I found that customers are satisfied with offline/online services provided by Karvy. But according to my study I have found that above 50% people are doing offline trading and left are doing online trading because generally people investing money in stock market have no enough time for trading so they prefer offline

trading .The traders who do the trading on daily basis they prefer offline trading. Its charging brokerage on reduced basis i.e. its brokerage charges are dependent on volume of trade, higher the volume lowers the brokerage charges. From my survey I found that 68% customer of the sample population are strongly agree with the brokerage charges of Karvy . I have also observed that Karvys brokerage is less than its market players.Its brokerage is 0.03 paise / rs100 on sameday trading and 0.30 paise/rs100 on delivery or holding Brokerage commission= Total quantity multiplied with 0.03% on intraday The satisfaction level of customer is also one of the primary objectives of my project. For this purpose I asked them various questions and found that 68% respondents are satisfied with overall services provided to them by karvy.

As per the initial charges, of Karvy the demat opening charges are rs650,Trading account as well with margin rs5000 .Its AMC(Annual Maintance Charges) is nill .According to my study I have observed that no doubt its a/c opening charges are less but its initial margin value is high and generally customer find it difficult to arrange such huge amount and he deny to open the a/c with Karvy .The people always demand low margin value in starting.

It also justifies its charges on the basis of no of services that it is providing through one account it is providing the facility of IPO which is not provided by many other brokerage houses. It is also providing the facility of trading in commodities and derivatives through account.

Its brokerage as I have already told is very low as comparison to another brokerage houses. Complimentary trading calls are also provided and all the queries are answered free of cost and it also provides the latest updates and corporate news to its customers.

I have also observed that the services provided by Karvy are excellent. The software provided to the customers is free of cost and of excellent features like the four exchanges are running together and it is odd in software (all India).

People are very much satisfied of Karvy and benefits they will be receiving if investing through it.

I also concluded from primary data and other facts that people have very high concern about the brokerage. So due to brokerage facts Karvy is favoured in market and lowest brokerage helped it to earn profitability. It was found that if a person wants to trade daily then he has to prefers that brokerage house which would beneficial for him but if he is not a daily or frequent trader then he will go for any other firm .But Karvy has different plans for daily traders and different plans and opportunities for traders who are not frequent traders.

PART-B

During my summer training I have observed many facts regarding stock market. Indian economy has been globalized and the capital market has been linked to the international financial market. Foreign individuals and institutional investors have encouraged participating into it. So, there is a need for raising the Indian Capital market in to the international standards in terms of efficiency and transparency.

most of the people are aware about stock market. They know about when to invest in stock market and when to invest in other investment sectors. Smart traders always select good script with background research and not stick on the particular script at all the time. The market will always swing sector wise, sometime IT sector script get good gain while sometime cement sector get swing upwards. All depend on the sectoral development and

policy changes. The smart investor considers all the reasons in mind and decides the script for the trade for particular period so that trades get profit from the trade. Some traders trade only particular script only for the year around. They think that it is easy to keep watch on the particular script rather than changing the script constantly. The single or more script can easily manage. The traders understand the move of the share and therefore act on it. Trader also understands the company and their financial results and forecasting. Internet is playing a vital role in keeping the users informed about the latest information on the block. Whether the information is related to travel, real estate, economy, sports, entertainment, nation or the world, everything is available on the web. People from all across the globe are updating the information on the websites and similarly the users in the different corners of the world check out the same via internet. Internet provides the best and the latest information that you want and that too in matter of a nanosecond. This information can be very helpful if you want any updates available for travel news, real estate news, economic news, educational news etc. These are the fields where rapid changes are expected and advances are made at a regular basis and therefore maintaining the record for the same becomes quite important. But internet has supported the people to get information with all kinds of updates and has far reaching grip on the latest information. people from across the world can update the latest news from any part of the world, which makes this information accessible to users on each and every corner of the world. Another most amazing thing is that, you get online information about all sorts of issues that are currently going on in the society or may act as a piece of information. This information is made available to you by means of diverse resources and can be updated regularly. With a host of visitors liking internet, there are number of websites launched to provide latest stock market news that offers the latest information of financial matters and can check out the latest sensex updates. Along with this, there are users who are looking out for sports news and are surfing the net for entertainment news and movie reviews so that they can check out when will be the movies of their favorite stars hitting the cinema screens.

RECOMMANDATIONS: Though Karvy is justifying the brokerage charges but still it has to take note of growing competition in the market. Karvy has to come up with regular improvements in product plans and services. Along with this Karvy has to tap those areas for business which is still not approached by any firm to grow its customer base. As I have discussed already that the brokerage of Karvy is low but its initial margin value is high .Due to this high margin value customer deny to open a/c with Karvy.They find it difficult to deposit huge amount initially.They generally argue that this amount is high as comparision to another brokerage houses.So I suggest karvy should lessen this amount so that customer does not take it otherwise. During my study I have also observed that no doubt Karvy is The Company is one of the highly reputed & professionally managed Companies in the field of Stock Broking and Securities Research and is an active player in the Securities Business during the past ten years. But in Punjab I will say very few percentage of people know about Karvy even it is giving excellent services to its customers so I suggest that Karvy should focus on marketing strategy/.It should do more marketing of it so that more people can know about .If I talk about todays scenario then marketing is very important place in business so Karvy Broking Limited should also think over this.

Karvy should create a different department to understand them well and make them a loyal customer. Behavior of the branch must be dedicated towards improving customer satisfaction. They all should keen to handle customer grievance. As I was trainee under Jalandhar branch of Karvy I saw there was no proper infrastructure facility so should also think to improve its infrastructure facilities. Karvy must handle customer complaints seriously. Most of the customer is found unaware of the major part of the services they are availing. So they should concentrate on generating quality customer out there.