Project Report on Karvy

SUMMER TRAINING PROJECT REPORT ON ³COMPARATIVE ANALYSIS OF STOCK BROKERS IN DELHI REGION´ AT

In partial fulfillment for the degree of Post Graduate Diploma in Management (PGDM) (SESSION 2009-11)

Submitted To:

Submitted By:

Prof. Y.L. GROVER Director General

RAM BALI YADAV PGDM (2009-11) Roll No. 109317

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DECLARATION

I·m Ram Bali Yadav, Yadav , a student of Management Education & and Research Institute New Delhi, Delhi , Which is approved by AICTE, AICTE, declare that the project entitled Ćomparative ´ Comparative Analysis Of Stock Brokers In Delhi Regionµ at Karvy Stock Broking Ltd. , is the original work

done

by

me

and

the information provided in the study is

authentic to the best of my knowledge. k nowledge.

Place:

Signature:

Ram Bali Yadav PGDM 3rd Semester (2009-11) Finance & Marketing



















TABLE & CONTENTS PAGE 1. ACKNOWLEDGEMENT «««««..««««««««««««««««.. 5 2. EXECUTIVE SUMMARY«...««««««««««««««««««««. 6 3. INTRODUCTION OF COMPANY««««««««««««««««««....7 4. BACKGROUND««««««««««««««««««««...««««««8-14 KARVY¶S MISSION«««««««««««««««««..«.9 1. KARVY¶S VISION«««««««««««««««.«««.«9 2. KEY PERSONS««««««««««««««««««.«......10-11 3. KARVY MILESTONES««««««««««««««««......12 4. KARVY CREDO««««««««««««««««««««..13 5. QUALITY POLICY«««««««««««««««««...«..14 5. KARVY VALUES««««««««««««««««««««««««...«...15 6. ACHIVEMENTS«««««««««««««««««««««««««.......16 7. KARVY WINGS««««««««««««««««««««««««....««17-20 1. 2. 3. 4. 5. 6. 7.

KARVY CONSULTANTS LIMITED«««««««««...«....17 KARVY INVESTOR SERVICES LIMITED««««««.......«17 KARVY COMPUTERSHARE PRIVET LIMITED«««...««.18 KARVY GLOBAL SERVICES LIMITED««««««...«««18 KARVY COMTRADE LIMITED««««««««««««.«.19 KARVY INSURANCE BROKING LIMITED««««««««.19 KARVY STOCK BROKING LIMITED«««««««...«««19

8. BACKGROUND OF STOCK EXCHANGE IN INDIA««««««««..««..21-23 1. 2. 3. 4.

STOCK BROKERS««««««««««««««.«««««22 SUB-BROKERS««««««««««««««..««««««.23 MARKET MAKERS«««««««««««..«««««««.23 PORTFOLIO CONSULTANTS««««...«««««««««...23



















9. PRODUCTS AND SERVICES OFFER BY KARVY««««««««««««.24-49 1. STOCK BROKING«««««««««««««««««««..25 2. D-MAT SERVICES«««««««««««««««««««..25 3. DERIVATIVE SERVICES««««««««««««««««..25 4. INVESTMENT PRODUCT DISTRIBUTION««««««««..26 5. INVESTMENT ADVISORY SERVICES««««««««««...29 6. CORPORATE FINANCE AND MERCHANT BANKING««.....30 7. INCOME TAX ENABLE SERVICES««««««««««««30 8. REGISTRARE & TRANSFER AGENTS««««««««««...32 9. LOANS««««««««««««««««««««««««...32 10. EQUITY TRADING PLATEFORM«««««««««««««33-37 11. MUTUAL FUNDS««««««««««««««««««««.38-43 12. INSURANCE««««««««««««««««««««««.44-45

10. MAJOR PLAYERS IN THE REGION«««««««««««««««««...46-52 1. KARVY««««««««««««««««««««««««...46 2. INDIAINFOLINE««««««««««««««««««««...47 3. ICICI DIRECT«««««««««««««««««««««...48 4. HDFC SECURITY««««««««««««««««««««..49 5. INDIABULLS««««««««««««««««««««««.50 6. SHARE KHAN«««««««««««««««««««««...52

11. RESEARCH METHODOLOGY««««««««««««««««««««..53-56 12. COMPARATIVE ANALYSIS«««««««««««««««««««««...57-59 13. FINDING AND ANALYSIS««««««««««««««««««««««..60-68 14. SUGGESTIONS«««««««««««««««««««««««««««.69 15. LIMITATION««««««««««««««««««««««««««««.70 16. CONCLUSION«««««««««««««««««««««««««««...71 17. APPENDIX (Questionnaire)««««««««««««««««««««««...72-73 18. BIBLIOGRAPHY«««««««««««««««««««««««««««74



















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, New Delhi, for giving me an opportunity to do my internship in their esteemed organization. My special appreciation extends to the Zonal Head Mr. Asutosh Sir for his constant encouragement throughout this period. I also extend my gratitude to my Guide at KARVY, Cluster Head Mr. Ranjeet Rawat and Personal Financial Advisor Kamalesh Kumar Yadav, Yadav, who instructed us with the work procedures and dealt with us with patience at all times. This internship would not be complete without the support of our Director Genaral Mr. Y L Grover. Grover. I would also like to thank placement head Mr. karnol Avatar Singh & our Internship Co-ordinators, Prof. K K Sharme for their guidance and unflinching support throughout the phases of my Internship. I also thank Dean A K Agrawal for his insightful knowledge, patience and encouragement which gave me the strength and power to perform my best. My special thanks to my costudents and dear friends Mr. Shailesh, Shashi Kumar, Lokesh Jain & Pratik Raj who being a part of the same internship, 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.



















EXECUTIVE SUMMARY

There is growing competition between brokerage firms in post reform India. For investor it is always difficult to decide which brokerage firm to choose. Research was carried out to find which brokerage house people prefer and to figure out what people prefer while investing in stock market. This study suggest that people are reluctant while investing in stock and commodity market due to lack of knowledge Main purpose of investment is returns and liquidity, commodity market is less preferred by investors due to lack of awareness. The major findings of this study are that people are interested to invest in stock market but they lack knowledge. Through this report we were also able to understand, what are our Company·s (Karvy) positive and strong points, on the basis of which we come to know what can be the basis of pitching to a potential client. We also gave suggestions to the th e company, what improvement can be done to our product. My Internship consisted of the On Job Training as A Seals Manager. The best learning experience was that I started from the very basics of getting to that position and not from the position itself. This helped me get useful insight and understanding of various financial products, the market details about them and the benefits provided by them to the customers. Emphasis was given in analysis of the investor behavior of the clients. Another interesting fact was that all these products were suggested to clients not just based on their market performance and returns, but on the client·s financial condition as well as their risk taking capacity. Training sessions were held to give me insights about the various products that KARVY STOCKBROKING deals in like: Mutual Funds, Insurance and Bonds. Presentations on the same after self study and analysis were a part of this internship session. I provided financial advice and suggestions to the investors for mutual funds which may prove prudent to them. For other products I studied the client·s investing behavior and assisted the wealth manager, who





















INTRODUCTION INTRODUCTION OF THE COMPANY

KARVY is 1st register and a premier integrated financial services provider and ranked among the top five in the country in all its business segments. It services over 16 million individual investors in various capacities and provides investor services to over 300 corporates, comprising who is who of Corporate C orporate India. It is a member of :   

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

Karvy utilized its experience and superlative expertise to capitalize on its strengths and better its service, innovate and provide new ones. It diversified in the process and thus t hus evolved as India·s premier integrated financial service enterprise. Karvy has been a customer centric company since its inception. It offers asingle platform servicing multiple financial instruments in its bid to offer complete financial solutions to the varying needs of both corporate and retail investors, where an extensive range of services are provided with great volumemanagement capability. KARVY covers the entire spectrum of financial



















BACKGROUND

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



















Karvy·s Mission:

´ Our mission is to be a leading and preferred service provider to our customers, and we aim to achieve this leadership position by building an innovative, enterprising, and technology driven organization which will set the highest standards of service and business ethics µ. An organization exists to accomplish something or achieve something. The mission statement indicates what an organization wants to achieve. The mission statement may be changed periodically to take advantage of new opportunities or respond to new market conditions. Karvy·s mission statement is ´To Bring Industry, Finance and People together.µ Karvy is work as intermediary between industry and people. Karvy work as investment advisor and helps people to invest their money same way Karvy helps industry in achieving finance from people by issuing shares, debentures, bonds, mutual funds, fixed deposits etc.Company·s mission statement is clear and thoughtful thoughtf ul which guide geographically dispersed employees to work independently yet collectively towards achieving the organization·s organization·s goals.

Vision of Karvy



















KEY PERSONS

Mr. C Parthasarathy,

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



















Mr.

M

Yugandhar,

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

Mr. M S Ramakrishna,

Director, founder member of KARVY Consultants Limited is the orchestrator of





















KARVY MILESTONES Karvy has traveled a success route over the past 25 years and positioned itself as an emerging financial service giant in which embeds the confidence and support of enviable patrons across the financial world. Patrons are also of diversified fields which includes over 16 million individual investors in various capacities and 300 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. Óur Clients, Our Focusµ Ćlients are the reason for our beingµ Personalized service, professional care; pro-activeness are the values that helps KARVY nurture enduring relationships with their clients. Teamwork Ńone of us is more important than all of usµ 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.



















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. s ervices.  Establish a partner relationship with its investor service agents



















Karvy Values Integrity Responsibility Reliability Unity Understanding Excellence Confidentiality



















ACHIEVEMENTS

 Among

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



First ISO - 9002 Certified Registrar in India

India's No. 1 Registrar & Securities Transfer Agents





Handled over 500 Public issues as Registrars

 Among

the top 3 Depository Participants





















KARVY WINGS As discussed earlier, KARVY offers a single platform servicing multiple financial instruments in its bid to offer complete financial solutions to the varying needs of both corporate and retail investors. The range of products and services are provided by the following wings.





















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





















Karvy Commodities focuses on taking commodities trading to new dimensions of reliability and profitability. They have h ave made commodities trading, an essentially age-old practice, into a sophisticated and scientific investment option. It helps in enabling trade in all goods and products of agricultural and mineral origin that include lucrative commodities like gold and silver and popular items like oil, pulses and cotton through a well-systematized trading platform.





















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, Baatein, keeps people informed on the immediate trends in the stock market. In addition, the specific industry reports give more comprehensive information on various industries. It also offers special portfolio analysis packages that provide daily technical advice on scrips for successful portfolio management. It provides customized advisory services to help the client make right financial moves which specifically suits their portfolios





















BACKGROUND OF STOCK EXCHANGE IN INDIA

The emergence of stock market can be traced back to 1830. In Bombay, business passed in the shares of banks like the commercial bank, the chartered mercantile bank, the chartered bank, the oriental bank and the old bank of Bombay and shares of cotton presses. Between 1840 and 1850, only half a dozen brokers existed for the limited business. But during the share mania of 1860-65, the number of brokers increased























permanent recognition. Others have to seek recognition on annual basis. These exchange do not work of its own, rather, these arerun by some persons and with the help of some persons and institution. All these are down as functionaries on stock exchange. These are























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























PRODUCTS & SERVICES OFFERED BY KARVY























1. Stock Broking: KARVY is working as Capital Market Intermediaries. Stockbrokers are regulated by SEBI [Stock-brokers and Sub-brokers] Regulations, 1992.























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

























































































































































































































































































































































































































































































































































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

Percentage (%)

Liquidity Return Capital Appreciation Tax Benefit Risk Covering Others Total

30% 25% 10% 20% 5% 10% 100

10% 5%

30%

Liquidity 20%

Return Capital Appreciation Tax Benefit 10%

25%

Risk Covering Others

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



















4. Most important things you take into your mind while make investment? Factor Risk Return Both total

Percentage (%) 8% 17% 75% 100

8% 17%

Risk Return

75%

Both



















5. Awareness related securities market? m arket? Knowledge Complete Partial Nil Total

Percentage (%) 8% 75% 17% 100

8% 17%

Complete Partial Nil

75%

Inference:

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



















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

Account Yes No Total

Percentage(%) 40% 60% 100

40%

60%

Yes No

Inference: only 40% people having the D-mat and Trading account.



















7. In which company do have D-mat D-m at and Trading account? Company ICICI Direct HDFC Security Karvy Share Khan Indiabulls India infoline Other Total

Percentage 26% 12% 19% 15% 10% 11% 7% 100

11%

7%

26%

ICICI Direct

10%

HDFC Security Karvy

12%

15%

Share Khan

Indiabulls

19%

India infoline Other

Inference:

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





















8. Specify the reason of satisfaction with the current broking house? Satisfaction Operating expenses Services Brokerage Total

Percentage (%) 18% 25% 57% 100

18%

Operating expenses Services

Brokerage

57%

25%



















FINDING

 According

to survey most of customer of ÍCICI Directµ says it is best service provider.

 After

analysis it fond that 70% customer are satisfied with Karvy & ICICI Direct.



Main purpose of investments are liquidity and returns.



Investor having Risk as well as Return in their mind while making their investing.



Businessmen are more interested in the stock market in comparison to other.



Now commodity market is more preferred pre ferred by investors.



People want to invest in security market but they haven·t proper



















SUGGESTIONS



Commitment should be equalized for every person.



Provide the facility of free demonstrations for all.



There should be a limited no. of clients under the relationship manager. So that he can handle new as well as existing customer properly.



Some promotional activity are required for awareness to the customer.



People who at young age should be encouraged to invest in stock market.



Seminars should be held for providing information to prospective and present customer.



















LIMITATION

 The sample extent for research is only Delhi City.

 Size of the research may not be substantial.

 There was lack of time on the part of respondents.

quest ionnaire and  The survey was carried through questionnaire



















CONCLUSION

On the basis of stusdy it found that karvy stock broking ltd. is batter services provider then other stock brokers because of their research and personalized advice on what stock buy and sell. karvy provide facility of trade as well as relationship manager facility for encouragement and protect the interest of investors. It also provide the information through the internet and mobile alert that what IPO·s are coming in the market and it also provides it·s research on the future prospect of the IPO. Study also includes that people are not much aware of commodity market while it·s going to be big market in India. The company should organize the seminars and similar activities to enhance the knowledge of prospective and existing customers, so that they can feel more comfortable while investing in stock market.





















APPENDIX Questionnaire 1) Do you know about a bout Investment options available? a) Yes

b) No

2) Do you know about the different types ty pes of investment alternatives? a) Insurance & mutual funds c) Real estate e) Commodity

b) Banks d) Share market f) Others

3) What is the basic purpose of your investment? i nvestment?



















7) In which company you have D-mat & Trading account? a) Sharekhan Ltd c) Indiainfoline e) Indiabulls g) Others

b) Karvy d) ICICI direct f) HDFC securities

8) Are you satisfied with you present broking company? a) Yes

b) No

9) What is the reason? Please specify. a) Services ______________________________ _______________________________________ _________ b) Brokerage ______________________________ _____________________________________ _______ c) Operating expenses __________________________ ______________________________ ____ d) Others _____________________________ ________________________________________ ___________



















BIBLIOGRAPHY

http://www.karvy.com http://www.wikipedia.com http://www.mutualfundsnavindia.com

http://www.moneycontral.com http://www.capitaline.com http://www.sharekhan.com

Project Report on Karvy

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