1

SUMMER TRAINING REPORT

ON
~COMPANY OVERVIEW
AND
~CUSTOMER BUYING PREFERENCE

AT

Karvy Stock Broking Ltd.




IN PARTIAL FULFILLMENT OF THE REQUIREMENT IN THE MBA
DEGREE OF

VNSGU , Surat






SUBMITTED BY: GUIDED BY:

Kaushal V. Bhatt INTERNAL GUIDE AT GRIMS:
!rof. !ankaj !atel

EXTERNAL GUIDE AT CO.
r. Shiril Vora



G.I.D.C. RA11U SHROFF ROFEL INSTITUTE OF MANAGEMENT
STUDIES

G.I.D.C. VAPI





2

DecIurution


I, r. Kaushal V. Bhatt student of GIDC RAJJU SHROFF
ROFEL INSTITUTE OF ANAGEENT STUDIES, VA!I, affiliated
to VEER NARAD SOUTH GUJARAT UNIVERSITY, SURAT
hereby declare that this project report is a result of culmination of
my sincere efforts.

I declare that this submitted work is done solely by me and to
the best of my knowledge; no such work has been submitted by any
other person for the award of degree or diploma.

I also declare that all the information collected from various
secondary sources has been duly acknowledged in this project
report.
























aushal Bhatt)





3
PROJECT COMPLETION CERTIFICATE

This is to certify that ^. )vv.nv nv has satisfactorily
completed the project work entitled, "Consumer Survey under my
Guidance Based on the declaration made by the candidate and my
association as a guide for carrying out this work, I recommend that
this project report for evaluation as a partial requirement of the
MBA Programme of Veer Narmad South Gujarat University.






Date: Prof. Pankaj Patel
GRIMS, VAPI


This project is forwarded for evaluation/Vive-Voce Examination to
the Veer Narmad South Gujarat University.


Date:
Dr.R.S.Shah)
Director, GRIMS, VAPI









4


ACkNOWLEDSEMENT
To acknowledge is very great way to show your gratitude towards
the persons who have contributed in your success in one or other
way.
I find words inadequate to express my gratitude to r. SHIRIL
VORA for providing me an opportunity to carry out my summer
training as such a well reputed and leading stock broking company
Karvy Stock Broking Limited (KSBL).

At the very outset of the training I deem it is my pious duty to
express my sincere thanks also to companys Branch Manager Mr.
Sameer Vora for his continuous guidance and supervision and
support during the training period. I would also like to thank to Ms.
Jaypalsinh Rathod, Mr. Dhruvpalsinh Jadeja, who have spared
sometime and helped me out to carry on my project work
successfully at the best level.

I would like to thank !rof. !ankaj !atel, who has guided me for
my project work and provided encouragement through out my
training period.
This study could not have been successful without the valuable
input of the customer of arvy.











5
PREFACE

I know that training is for the development and enhancement of
the knowledge in this particular field. It can never be possible to
make a mark in todays competitive era only with theoretical
knowledge when industries are developing at global level, practical
knowledge of administration and management of business is very
important. Hence, practical study is of great importance to M.B.A.
student.

With a view to expand the boundaries of thinking, I have
undergone
rd
SEM TRAINING at Karvy Stock Broking Limited
(KSBL). I have made a deliberate to collect the required
information and fulfill training objective.





6

EXECUTIVE SUMMARY


For every Stock Broking Company one has to compulsorily know
how the people are taking their decision regarding the
investments. Herewith, I have tried to compile the CUSTOER
BUYING !REFERENCE in Bhavnagar City. Therefore I have
selected this topic in order to know the mindset of the people
and how they decide with which company, they should deal with.
Ive tried to find out various aspect of the investor in Bhavnagar
City. For that I have taken the help of graphs to represent the
research data in a graphical manner.

This project report also gives brief information of the other
companies and all the four-departmental activities of Karvy Ltd.























7
INDEX

DECLERATION I
CERTIFICATE II
ACKNOWLEDGEMENT III
PREFACE IV
EXECUTIVE SUMMARY V

Sr.
No.
Particulars Page
No.
1 GENERAL INFORMATION 2
2 ABOUT KARVY 26
3 SWOT ANALYSIS 35
4 MARKETING DEPARTMENT 48
5 FINANCIAL DEPARTMENT 68
6 HUMAN RESOURCE DEPARTMENT 72
7 OPERATION DEPARTMENT 87
8 RESEARCH METHODOLOGY 98
9 LIMITATION 102
10 CONCLUSION 118
11 BIBLIOGRAPHY 119





8


























9




ABOUT INDUSTRY:

HISTORY OF THE STOCK BROKING INDUSTRY

Indian Stock Markets are one oI the oldest in Asia. Its history dates back to nearly
200 years ago. The earliest records oI security dealings in India are meager and
obscure.

By 1830's business on corporate stocks and shares in Bank and Cotton presses took
place in Bombay. Though the trading list was broader in 1839, there were only halI a
dozen brokers recognized by banks and merchants during 1840 and 1850. The 1850's
witnessed a rapid development oI commercial enterprise and brokerage business
attracted many men into the Iield and by 1860 the number oI brokers increased into
60.

In 1860-61 the American Civil War broke out and cotton supply Irom United States
oI Europe was stopped; thus, the 'Share Mania' in India begun. The number oI
brokers increased to about 200 to 250. However, at the end oI the American Civil
War, in 1865, a disastrous slump began (Ior example, Bank oI Bombay Share which
had touched Rs 2850 could only be sold at Rs. 87). At the end oI the American Civil
War, the brokers who thrived out oI Civil War in 1874, Iound a place in a street
(now appropriately called as Dalal Street) where they would conveniently assemble
and transact business.

In 1887, they Iormally established in Bombay, the "Native Share and Stock Brokers'
Association" (which is alternatively known as "The Stock Exchange"). In 1895, the
Stock Exchange acquired a premise in the same street and it was inaugurated in
1899. Thus, the Stock Exchange at Bombay was consolidated.

Thus in the same way, gradually with the passage oI time number oI exchanges were
increased and at currently it reached to the Iigure oI 24 stock exchanges.











10




DEVELO!ENT


An important early event in the development oI the stock market in India was the
Iormation oI the Native Share and Stock Brokers` Association at Bombay in 1875,
the precursor oI the present-day Bombay Stock Exchange. This was Iollowed by the
Iormation oI associations /exchanges in Ahmedabad (1894), Calcutta (1908), and
Madras (1937). IN addition, a large number oI ephemeral exchanges emerged
mainly in buoyant periods to recede into oblivion during depressing times
subsequently.

In order to check such aberrations and promote a more orderly development oI the
stock market, the central government introduced a legislation called the Securities
Contracts (Regulation) Act, 1956. Under this legislation, it is mandatory on the part
oI stock exchanges to seek government recognition. As oI January 2002 there were
23 stock exchanges recognized by the central Government. They are located at
Ahemdabad, Bangalore, Baroda, Bhubaneshwar, Calcutta, Chenni,(the Madras stock
Exchanges ), Cochin, Coimbatore, Delhi, Guwahati, Hyderbad, Indore, Jaipur,
Kanpur, Ludhiana, Mangalore, Mumbai(the National Stock Exchange or NSE),
Mumbai (The Stock Exchange), popularly called the Bombay Stock Exchange,
Mumbai (OTC Exchange oI India), Mumbai (The Inter-connected Stock Exchange
oI India), Patna, Pune, and Rajkot. OI course, the principle bourses are the National
Stock Exchange and The Bombay Stock Exchange, accounting Ior the bulk oI the
business done on the Indian stock market.

While the recognized stock exchanges have been accorded a privileged position,
they are subject to governmental supervision and control. The rules oI a recognized
stock exchanges relating to the managerial powers oI the governing body, admission,
suspension, expulsion, and re-admission oI its members, appointment oI authorized
representatives and clerks, so on and so Iorth have to be approved by the
government. These rules can be amended, varied or rescinded only with the prior
approval oI the government. The Securities Contracts (Regulation) Act vests the
government with the power to make enquiries into the aIIairs oI a recognized stock
exchange and its business, withdraw the recognition the task oI regulating the stock
exchange to the Securities Exchanges Board oI India.










11











BSE (BOBAY STOCK EXCHANGE)

The Stock Exchange, Mumbai, popularly known as BSE was established in 1875
as The Native Share and Stock Brokers Association. It is the oldest one in
Asia, even older than the Tokyo Stock Exchange, which was established in 1878. It
is a voluntary non-proIit making Association oI Persons (AOP) and is currently
engaged in the process oI converting itselI into demutualise and corporate entity. It
has evolved over the years into its present status as the premier Stock Exchange in
the country. It is the Iirst Stock Exchange in the Country to have obtained permanent
recognition in 1956 Irom the Govt. oI India under the Securities Contracts
(Regulation) Act, 1956.

The Exchange, while providing an eIIicient and transparent market Ior trading in
securities, debt and derivatives upholds the interests oI the investors and ensures
redresses oI their grievances whether against the companies or its own member-
brokers. It also strives to educate and enlighten the investors by conducting investor
education program and making available to them necessary inIormative inputs.

A Governing Board having 20 directors is the apex body, which decides the policies
and regulates the aIIairs oI the Exchange. The Governing Board consists oI 9 elected
directors, who are Irom the broking community (one third oI them retire ever year by
rotation), three SEBI nominees, six public representatives and an Executive Director
& ChieI Executive OIIicer and a ChieI Operating OIIicer.













12

NSE (NATIONAL STOCK EXCHANGE)

NSE was incorporated in 1992 and was given recognition as a stock exchange in
April 1993. It started operations in June 1994, with trading on the Wholesale Debt
Market Segment. Subsequently it launched the Capital Market Segment in
November 1994 as a trading platIorm Ior equities and the Futures and Options
Segment in June 2000 Ior various derivative instruments.

NSE has been able to take the stock market to the doorsteps oI the investors. The
technology has been harnessed to deliver the services to the investors across the
country at the cheapest possible cost. It provides a nation-wide, screen-based,
automated trading system, with a high degree oI transparency and equal access to
investors irrespective oI geographical location. The high level oI inIormation
dissemination through on-line system has helped in integrating retail investors on a
nation-wide basis. The standards set by the exchange in terms oI market practices,
Products , technology and service standards have become industry benchmarks and
are being replicated by other market participants. Within a very short span oI time,
NSE has been able to achieve all the objectives Ior which it was set up. It has been
playing a leading role as a change agent in transIorming the Indian Capital Markets
to its present Iorm. The Indian Capital Markets are a Iar cry Irom what they used to
be a decade ago in terms oI market practices, inIrastructure, technology, risk
management, clearing and settlement and investor service.





13

NCDEX (NATIONAL COODITIES AND
DERIVATIVES EXCHANGE)


NCDEX started working on 15
th
December, 2003. This exchange provides Iacilities
to their trading and clearing member at diIIerent 130 centers Ior contract.
In commodity market the main participants are speculators, hedgers and arbitrageurs.
Promoters oI NCDEX are,
National Stock Exchange(NSE)
ICICI bank
LiIe Insurance Corporation(LIC)
National Bank Ior Agricultural and Rural Development (NABARD)
IFFICO
Punjab National Bank (PNB)
CRISIL

Why NCDX?
NCDEX is nationalized screen based system which is providing transparent,
private and easy services.
NCDEX is one oI the traditional media which gives online inIormation
NCDEX is one oI the Indian commodity exchange, constructed on the basis
oI the current national institutes the exchange has been established with the
coloration oI leading institutes like NABARD, LIC, NSI etc..
In India NCDEX has maximum settlement guarantee Iund.
NCDEX has appointed two exports Ior checking quality at the time oI
delivery

Facilities Provided By NCDEX
NCDEX has developed Iacility Ior checking oI commodity and also provides
a wear house Iacility





14
By collaborating with industrial partners, industrial companies, news
agencies, banks and developers oI kiosk network NCDEX is able to provide
current rates and contracts rate.
To prepare guidelines related to special products oI securitization NCDEX
works with bank.
To avail Iarmers Irom risk oI Iluctuation in prices NCDEX provides special
services Ior agricultural.
NCDEX is working with tax oIIicer to make clear diIIerent types oI sales and
service taxes.
NCDEX is providing attractive products like 'weather derivatives














15
CX(ULTI COODITY EXCHANGE)

MULTI COMMODITY EXCHANGE` oI India limited is a new order exchange
with a mandate Ior setting up a nationwide, online multi-commodity market place,
oIIering unlimited growth opportunities to commodities market participants. As a
true neutral market, MCX has taken several initiatives Ior users in a new generation
commodities Iutures market in the process, become the country`s premier exchange.
MCX, an independent and a de-mutualized exchange since inception, is all set up to
introduce a state oI the art, online digital exchange Ior commodities Iutures trading
in the country and has accordingly initiated several steps to translate this vision into
reality.

Market Watch:




The market watch window is used to view the market details Ior a particular or
group oI contracts and Ior a particular instrument type. This window displays the
Iollowing details: Symbol, Expiry, price quotation unit, buy qty, buy price, sell price,
sell qty, last traded price, D.P.R, volume (in 000`s), value (in lack), change,
average trade price, high, low, open, close & open interest.









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STOCK ARKET BASIC


What are corporations?

Companies are started by individuals or may be a small circle oI people.
They pool their money or obtain loans, raising Iunds to launch the business.
A choice is made to organize the business as a sole proprietorship where one
Person or a married couple owns everything, or as a partnership with others who
may wish to invest money. Later they may choose to "incorporate". As a
Corporation, the owners are not personally responsible or liable Ior any debts oI the
company iI the company doesn't succeed. Corporations issue oIIicial-looking sheets
oI paper that represent ownership oI the company. These are called stock certiIicates,
and each certiIicate represents a set number oI shares. The total number oI shares
will vary Irom one company to another, as each makes its own choice about how
many pieces oI ownership to divide the corporation into. One corporation may have
only 2,500 shares, while another, such as IBM or the Ford Motor Company, may
issue over a billion
shares. Companies sell stock (pieces oI ownership) to raise money and provide
Iunding Ior the expansion and growth oI the business. The business Iounders give up
part oI their ownership in exchange Ior this needed cash. The expectation is that
even though the owners have surrendered a portion oI the company to the
public, their remaining share oI stock will become increasingly valuable as the
business grows. Corporations are not allowed to sell shares oI stock on the open
stock market without the approval oI the Securities and Exchange Commission
(SEC). This transition Irom a privately held corporation to a publicly traded one is
called going public, and this Iirst sale oI stock to the public is called an initial public
oIIering, or IPO.
Why do people invest in the stock market?
When you buy stock in a corporation, you own part oI that company. This gives
you a vote at annual shareholder meetings, and a right to a share oI Iuture proIits.
When a company pays out proIits to the shareholder, the money received is called a
"Dividend".
"kj* I I ** 1 I V* * I





17
The corporation's board oI directors choose when to declare a dividend and how
much to pay. Most older and larger companies pay a regular dividend, most newer
and smaller companies do not.
The average investor buys stock hoping that the stock's price will rise, so the
shares can be sold at a proIit. This will happen iI more investors want to buy stock
in a company than wish to sell. The potential oI a small dividend check is oI little
concern.
What is usually responsible Ior increased interest in a company's stock is the
prospect oI the company's sales and proIits going up.
A company who is a leader in a hot industry will usually see its share price rise
dramatically.
Investors take the risk oI the price Ialling because they hope to make more money in
the market than they can with saIe investments such as bank CD's or government
bonds.
What is a stock market index?
In the stock market world, you need a way to compare the movement oI the market,
up and down, Irom day to day, and Irom year to year. An index is just a
benchmark or yardstick expressed as a number that makes it possible to do this
comparison. For e.g. S&P CNX NiIty is the index oI NSE and SENSEX is the index
oI BSE.

Market Cap
As you become Iamiliar with stock and mutual Iund investing, you will encounter
the term "Cap", as in Small-Cap, Mid-Cap, and Large-Cap. Cap is short Ior
capitalization.
As a stock market term, the capitalization oI a company is calculated by multiplying
the total number oI shares by the current price per share. II a company has 500
million shares trading at $20 a share, its market cap is $10 billion (500,000,000 x
$20). This is the total value oI the company's stock, the value that the world oI
stock market investors has placed on the company (at least Ior today, investors
are quick to change their minds).






18
Much oI this perceived value is due to the expectations oI a company's Iuture
prospects.
Market cap is not dictated by how "big" a company is.
Today, we deIine a large-cap company as one whose stock is valued at over $10
billion (some still say over $5 billion), a mid-cap Irom $1 to $10 billion, a small-cap
Irom $250 million to $1 billion, and a company whose stock value is under $250
million as a micro-cap. Depending on whom you listen to or how old your
reIerence book is, these deIinitions will vary.
A related point - don't think a company is big just because it has a high stock
price, or that it is small just because its stock price is low.
For example, Disney trading at $23 is not smaller than Barnes & Noble trading at
$33, since Disney has 2,048,690,000 shares outstanding (called the "Iloat") and
B&N has just 68,585,000 shares. That's a $4.7 billion market cap Ior Disney versus
only $226 million Ior Barnes & Noble.
The price per share, like the market cap, has nothing to do with how big a company
is.

The Securities Market consists oI two segments, viz. Primary market and
Secondary market. Primary market is the place where issuers create and issue equity,
debt or hybrid instruments Ior subscription by the public; the Secondary market
enables the holders oI securities to trade them.
Secondary market essentially comprises oI stock exchanges, which provide platIorm
Ior purchase and sale oI securities by investors. In India, apart Irom the
Regional Stock







19
Exchanges established in diIIerent centers, there are exchanges like the National
Stock Exchange (NSE) and the Over the Counter Exchange oI India (OTCEI),
who provide nation wide trading Iacilities with terminals all over the country. The
trading platIorm oI stock exchanges is accessible only through brokers and trading
oI securities is conIined only to stock exchanges.
Thus, the securities market has two independent, inseparable segments, the new
issues (primary) market and the stock (secondary) market. The primary market
provides channel Ior sale oI new securities while the secondary market deals in
securities previously issued. The issuer oI securities sells the securities to the
primary market to raise Iunds Ior investment and/or to discharge some obligations.
The secondary market enables them who hold securities to adjust their holdings in
response to change in their assessment oI risk and return. They also sell securities
Ior cash to meet their liquidity needs.
The corporate securities market dates back to the 18 century when the securities
oI the East India Company were traded in Mumbai and Kolkata. The brokers used
to gather under a banyan tree in Mumbai and under a neem tree in Kolkata Ior
the purpose. However, the real beginning came in the 1850s with the introduction
oI the joint stock companies with limited liability. The 1860s witnessed beverish
dealings in securities and securities speculation. This brought brokers to Bombay
together in July 1875 to boom the Iirst organized stock exchange in the country,
viz. The Stock Exchange, Mumbai, Ahmedabad Stock Exchange in 1894 and 22
others Iollowed with 20 century.
The Stock Exchanges are the exclusive centers Ior trading in equities and the
trading platIorm oI an exchange is accessible only to brokers. The regulatory
Iramework heavily Iavors the recognized stock exchanges by almost banning
trading activity outside the stock exchanges. The securities are divided into two
parts viz. Corporate securities and Government Securities

Corporate Securities:
The no oI stock exchanges increased Irom 11 in 1990 to 23 now. All the
exchanges are Iully computerized and oIIer 100 on-line trading. 9644 companies
were available Ior trading on stock exchanges at the end oI March 2002. The trading
platIorm oI the stock exchanges was accessible to 9687 members Irom over 400
cities on the same date.
The sectoral distribution oI turnover has undergone signiIicant change over last
Iew
Years. The share oI manuIacturing companies in turnover oI top '50' companies,
which was nearly 80 in 1995-96, declined sharply to about 6 in 201-02. During the
same period the share oI IT companies in turnover increased sharply Irom nil in
1995-96 to 67 in 2001-02.





20
Government Securities:
The aggregate turnover in central and state government dated securities, including
treasury bills, through SGL transactions increased 31 times between 1994-95 and 2001-
02. During 2001-02 it reached a level oI Rs. 1,573,893 core, higher than combined
trading volumes in equity segments oI all the exchanges in the country, reIlecting
deepening oI the market. The share oI outright transactions in government securities
increased Irom 23.2 in 1995-96 to 77 in 2001-02. The share oI repo transactions
declined correspondingly Irom 76.8 in 1995-96 to 23 in 2001-02. The Share oI
dated securities in turnover oI government securities increased Irom 69 in 1996-97 to
94 in 2001-02. The T-bills accounted Ior remaining SGL turnover.
Derivatives Market:
Derivatives trading commenced in India in June 2000. The total exchange traded
derivatives witnessed a volume oI Rs. 442,343 crore during 2002-03 as against Rs. 4018
crore during the preceding year. While NSE accounted Ior about 99.5 oI total
turnover, BSE accounted Ior about 0.5 in 2002-03. The market witnessed higher
volumes Irom June 2001 with introduction oI index options, and still higher volumes
with introduction oI stock options in July 2001. There was a spurt in volumes in
November 2001 when stock Iutures were introduced. It is believed that India is the
largest market in the world Ior stock Iutures.
The stock market or secondary market ensures Iree marketability, negotiability and price
discharge. For these reasons the stock market is reIerred to as the nerve center oI the
capital market, reIlecting the economic trend as well as the hopes, aspirations and
apprehensions oI the investors. Stock Market is also called the barometer oI the economy.




The broad structure oI the secondary market as on March 31, 2000 is presented
below:
Stock Exchanges 24
Exchanges with Screen Based Trading system 24
Exchanges having Trade/Settlement Guarantee Fund 16
Exchanges with Internet Trading 1
Registered Members (brokers) 9192
Registered Foreign Brokers 38
Registered Corporate Members 3136
Registered Sub-Brokers 5675
Registered FIIS 506
Listed Companies 9871
Market Capitalization Rs. 1192630 crore
Turnover during 1999-2000 Rs. 2067031 crore





21
Supply and Demand
A stock's price movement up and down until the end oI the trading day, is strictly a
result oI supply and demand. The SUPPLY is the number oI shares oIIered Ior sale
at anyone one moment. The DEMAND is the number oI shares investors wish to
buy at exactly that same time. What a share oI a company is worth on anyone day or
at any one minute, is determined by all investors voting with their money. II
investors want a stock and are willing to pay more, the price will go up. II investors
are selling a stock and there aren't enough buyers, the price will go down. Period.

How does one buy stocks?
Buying stocks is not as simple as walking into a stockbroker's oIIice and buying
shares like you would a pair oI shoes Irom a store. You are required to open an account
with the brokerage, like opening an account at a bank.
Some brokers will allow you to open an account with very little money. The Iirm will
then hold this money in an interest earning cash account, awaiting your orders to buy or
sell stock, or other securities such as bonds or mutual Iunds. When you buy or sell, you
pay a commission, which is deducted, Irom your account. When a stock is purchased, the
ownership oI the shares may be listed in one oI two ways. "Listed" means how the
corporation tracks the ownership oI their stock.
II you choose to have the stock listed in your name, you will receive the actual stock
certiIicates. Most investors choose to have the ownership listed in the broker's name,
called "held in street name", with the broker keeping track oI whose trading account the
stock actually belongs to. The beneIits are reduced paperwork, consolidated portIolio
statements, no concerns about storing and processing the paper certiIicates, and the
ability to instantly sell and transIer the shares. Either way, any dividends are credited to
your account. Stocks held in street name are insured up to $500,000 by the Iederal
government against Iraud or Iinancial Iailure oI the brokerage company.
Why do people sell their stock?
The reasons people sell their stock are more complex. A person may just need the
money. He or she may have watched the price go up, and have a hunch this is a good
time to lock in their proIit and sell some or all their shares.
Bad news concerning a company or its industry, or a disappointing earnings report is
sure to prompt heavy selling.





22
An investor may see better opportunities in another company, and so sell his stocks
that aren`t moving up. But usually, investors sell because they`ve watched the price
Iall, and just want to get out beIore they lose even more.
Secondary Market Intermediaries
Stock brokers, sub-brokers, portIolio managers, custodians, share transIer agents
constitute the important intermediaries in the Secondary Market.
A stock broker plays a very important role in the secondary market helping both the seller
and the buyer oI the securities to enter into a transaction. The buyer and seller may be
either a broker or a client. The transaction entered cannot be annulled except in the case
oI Iraud, willIul misrepresentation or upon prima-Iacie evidence oI a material mistake in
the transaction, in the judgment oI the existing authorities. II a member oI the stock
exchange (broker) has orders to buy and to sell the same kind oI securities, he may
complete the transaction between his clients concerned.
When executing an order the stock may on behalI oI his client buy or sell securities
Irom his account i.e. as principal or act as an agent. For each transaction he has to
issue necessary contract note indicating whether he as principal or as an agent Ior
another has entered into the transaction. While buying pr selling securities as a
principal, the stock broker has to obtain the consent oI his client and the prices charged
should be Iair and justiIied by the conditions oI the market.
A sub-broker is one who works along with the main broker and is not directly registered
with the stock exchange as a member. He acts on behalI oI the stockbroker as an agent or
otherwise Ior assisting the investors in buying, selling or dealing in securities through
such stockbrokers.
No stockbrokers or sub-brokers shall buy, sell or deal in securities unless he holds a
certiIicate oI registration granted by SEBI under the Regulations made by SEBI ion
relation to them.

The Central Government has notiIied SEBI (Stock Brokers & Sub-Brokers) Rules,
1992 in exercise oI the powers conIerred by section 29 oI SEBI Act, 1992. These rules
came into eIIect on 20
th
August, 1992.













23
Ten Golden rules for Investment:
Warren BuIIet has suggested ten golden rules Ior investing which proves to be immense
use to the investors who want a better investment in stock market, Karvy Iollows these
rules which are as described below:
1. Never invest in a business you cannot understand.
2. Concentrating on a Iew holdings can reduce risk.
3. Stop trying to predict the direction oI the stock market, the economy, interest
rates, or elections.
4. Buy companies with strong histories oI proIitability and with a dominant
business Iranchisee.
5. Be IearIul when others are greedy and greedy when others are IearIul.
6. Unless you can watch your stock holding decline by 50 without becoming
panic-stricken, you should not be in the stock market.
7. Do not take yearly results too seriously. Instead, Iocus on Iour or Iive year
averages.
8. Focus on return on equity, not earnings per share (EPS).

9. Calculate "owner earnings" to get a true reIlection oI value. Look Ior companies
with high proIit margins.
10. Always invest Ior the long term. Does the business have Iavorable long-term
prospects?





24



HISTORY OF ONLINE TRADING:

Online stock trading is very old concept Ior big institutions who trade
thru private networks owned by Reuter's "Instinet" and a system called
"Posit" since 1969. But it becomes internet based Ior lay men only in late 90s.

Funny, that actually idea was Iirst time used by a company making Beer
called "WIT beer" to help its shareholders trade its shares. That`s how "WIT
Capital" was born which is considered pioneer oI this concept. It was made
mainstream and household name by an oIIshoot oI Charles Schwab & Co called
eSchwab which is used by millions oI people in USA. Lots oI NRI's play
in US stock market even when they come to India Ior holidays, via website
oI eSchwab.

There are other serious players like E`trade, DATEK online etc. All this
companies ask you to start account with US $5000 and you can buy and sell
stock using these Iunds. They also issue you a check book which you can use
to make payments Irom this account. Or use their ATM card to withdraw cash
Irom your stock trading account.

Today practically every big name brokerage Iirm oIIers online stock trading
as it reduces their costs. Earlier they had army oI brokers on phone with
clients executing trade, which is done by computers accepting orders Irom
clients directly. This Iirm now oIIers human access to high net worth accounts, and to
rest at charge per trade.






25
E- BROKING - A SMALL BEGINNING:

You have some money to dabble with. Trading shares on BSE/NSE has always been
your dream. When will you ever Iind the time? And besides, the hassle oI Iinding a
broker is not easy. Realizing there is untapped market oI investors who want to be able
to execute their own trades when it suits them, brokers have taken their trading rooms to
the Internet. Known as online brokers, they allow you to buy and sell shares via Internet.
There are 2 types oI online trading service:

1. Discount brokers and
2. Full service online broker.

Discount online brokers allow you to trade via Internet at reduced rates. Some provide
quality research, other don`t. Full service online brokerage is linked to existing
brokerages. These brokers allow their clients to place online orders with the option oI
talking/ chatting to brokers iI advice is needed. Brokerage rates here are higher.
5Paisa.com, ICICIDirect.com, IndiaBulls.com, Sharekhan.com, Karvy.com,
HDFCsec.com, Tatatdw.com, Kotakstreet.com are some oI the online broking sites in
India. With Net trading in securities and rapid consolidation between multiple stock
exchanges, the international securities marketplace is Iast becoming a "global village"
through the creation oI a universal virtual equity market.

Compared to the Western countries, online trading is still in its inIancy in India. With
trading turnover at around Rs. 10 crore per day Irom online trading compared to a
combined gross turnover oI around Rs. 9000-10,000 crore handled by the BSE and NSE
together, online trading has a long way to go.






26
INTERNET TRADING IN INDIA:

In the past, investors had no option but to contact their broker to get real time access to
market data. The Net brings data to the investor on line and net broking enables him to
trade on a click. Now inIormation has become easily accessible to both retail as well as
big investors.

The development oI broking in India can be categorized in 3 phases:

. Stock brokers oIIering on their sites Ieatures such as live portIolio manager, live
quotes, market research and news to attract more investors.

. Brokers oIIering on line broking and relationship management by providing and
oIIering analysis and inIormation to investors during broking and non-broking hours
based on their proIile and needs, that is, customized services.


. Brokers (now e-brokers) will oIIer value management or services such as initial
public oIIerings on line, asset allocation, portIolio management, Iinancial planning, tax
planning, insurance services and enable the investors to take better and well-considered
decisions.


In the US, 82 per cent oI the deals are done on line. The European on line broking
market is expected to be oI $8 billions and is likely to raise Iive Iold by 2002. In India,
presently Internet trading can take place through the order routing system, which will
route client orders to exchanges trading systems Ior execution oI trades on stock
exchanges (NSE and BSE). This will also require interIace with banks to Iacilitate
instant cash debit or credit and the depository system Ior debit or credit oI securities.

OBJECTIVES OF INTERNET TRADING:

O Increase transparency in the markets.
O Enhance market quality through improved liquidity, by increasing quote
continuity and market depth.
O Reduce settlement risks due to open trades, by elimination oI mismatches.
O Provide management inIormation system (MIS).
O Introduce Ilexibility in system, to handle growing volumes easily and to support
nationwide expansion oI market activity.
O Besides, through Internet trading three Iundamental objectives oI securities
regulation can be easily achieved, these are: Investor protection, creation oI a Iair and
eIIicient market and, reduction oI the systematic risks.






27
!ROCEDURE FOR INTERNET TRADING:


O Step-: Those investors interested in doing the trading over internet system, that is,
NEAT-ISX, should approach the brokers and register with the Stock Broker.

O Step-: AIter registration, the broker will provide to them a login name, password
and a personal identiIication number (PIN).


O Step-: Actual placement oI an order. An order can then be placed by using the
place order window as under:

4 First by entering the symbol and series oI stock and other parameters such
as quantity and price oI the scrip on the place order window.

4 Second, Iill in the symbol, series and the deIault quantity.


O Step-4:It is the process oI review. Thus, the investor has to review the order placed
by clicking the review option. He may also re-set to clear the values.

O Step-5: AIter the review has been satisIactory; the order has to be sent by clicking
on the send option.


O Step-6: The investor will receive an ``Order ConIirmation'' message along with the
order number and the value oI the order.

O Step-7: In case the order is rejected by the Broker or the Stock Exchange Ior certain
reasons such as invalid price limit, an appropriate message will appear at the bottom oI
the screen. At present, a time lag oI about ten seconds is there in executing the trade.


O Step-8: It is regarding charging payment, Ior which there are diIIerent modes.
Some brokers will take some advance payment Irom the investors and will Iix their
trading limits. When the trade is executed, the broker will ask the investor Ior transIer oI
Iunds by the investor to his account.






28


The above Iigure shows how the internet trading procedure.




Trading Through Brokers / Traditional ethod of
Share Trading :-

Trading in the stock exchange can be conducted only through member broker in
securities that are listed on the respective exchange. Investor intending to buy/sell
securities in the exchange has to do so only through a SEBI registered broker/sub-broker.
This is very popular concept in India Ior Share Trading beIore the Iacilities like on line
trading introduce.

Both the exchange have switched over Irom the open outcry trading system to Iully
automated computerized mode oI trading know as Bolt and Neat. In this system, the
broker trade with each other through the computer network. Buyers and sellers place
their orders speciIying the limits Ior quality and price. Those that are not matched
remain on the screen and is opened Ior Iuture matching during the day / settlement. AIter
the advent oI computerized trading the speed oI trading has increased multi-Iold and a
Iuller view oI the market is available to the investors.
To start dealing with broker you have to Iill a Iorm with the broker. AIter Iill all the
Iormalities the Iirm gives you a User Id no like a bank a/c no. through which you can
enter in the transaction with broker. Broker will gives all the which one investor needed.






29


What is stock Broker?

"A stock broker is one who invests other people's money until it's all gone.
-Woody Allen, American Film Maker

A stock broker is a person or a Iirm that trades on its clients behalI, you tell them what
you want to invest in and they will issue the buy or sell order. Some stock brokers also
give out Iinancial advice that you a charged Ior.

It wasn`t too long ago and investing was very expensive because you had to go through a
Iull service broker which would give you advice on what to do and would charge you a
heIty Iee Ior it.
There are three diIIerent types oI stock brokers.

1. Full Service Broker - A Iull-service broker can provide a bunch oI services such as
investment research advice, tax planning and retirement planning.

2. Discount Broker A discount broker let`s you buy and sell stocks at a low rate but
doesn`t provide any investment advice.

3. Direct-Access Broker- A direct access broker lets you trade directly with the
electronic communication networks (ECN`s) so you can trade Iaster. Active traders such
as day traders tend to use Direct Access Brokers

No. of stock broker in India
9368:- Total no oI share broker in the country
12687:- The no. oI sub-broker.
46:- The share oI trades accounted Ior by NSE broker
90: The share oI On line trades clocked by segment`s top Iive companies






30

Types Of Order :-

There are various types oI orders, which can be placed on the exchange :

Limit Order:-

The orders reIer to a buy or sell order with a limit price. Suppose, you check the quote oI
Reliance Industries Ltd.(RIL) as Rs. 251 (Ask). You place a buy order Ior RIL with a
limit price oI Rs. 250. This puts a cap on your purchase price. In this case as the current
price is greater than your limit price, order will remain pending and will be executed as
soon as the price Ialls to Rs. 250 or below. In case the actual price oI RIL on the
exchange was Rs 248, your order will be executed at the best price oIIered on the
exchange, say Rs 249. Thus you may get an execution below your limit price but in no
case will exceed the limit buy price. Similarly Ior a limit sell order in no case the
execution price will be below the limit sell price.

Market Order:-

Generally investors, who expect the price oI share to move sharply and are yet keen on
buying and selling the share regardless oI price, use a market order. Suppose, the last
quote oI RIL is Rs 251 and you place a market buy order. The execution will be at the
best oIIer price on the exchange, which could be above Rs 251 or below Rs 251 . The
risk is that the execution price could be substantially diIIerent Irom the last quote you
saw. Please reIer to important Fact Ior Online Investors.


Stop Loss Order:-

A stop loss order allows the trading member to place an order which gets
activated only when the last traded price (LTP) oI the share is reached or crosses
threshold price called as the trigger price. The trigger price will be as on the price mark
that you want it to be. For example, you have a sold position in Reliance Ltd. Booked at
Rs 345. Later in case the market goes against you i.e. go up, you would not like to buy
the scrip Ior more than Rs. 353. Then you would put a SL Buy order with a Limit price
oI Rs. 353. You may choose to give a trigger price oI Rs.351.50 in which case the order
will get triggered into the market when the last traded price hits Rs.351.50 or above. The
execution will then be immediate and will be at the best price between 351.50 and 353.
However stock movement can be so violent at times. The prices can Iluctuate Irom the
current level to over and above the SL limit price, you had quoted, at one shot i.e. the
LTP can move Irom 350.351. and directly to 353.50. At this moment your order will
immediately be routed to the Exchange because the LTp has crossed the trigger price
speciIied by you. However, the trade will not be executed because oI the LTP being over
and above the limit price that you had speciIied. In such a case you will not be able to
square your position. Again as the market Ialls, say iI the script Ialls to 353 or below,
your order will be booked on the SL limit price that you have speciIied i.e. Rs.353. Even





31
iI the script Ialls Irom 353.50 to 352 your buy order will be booked at Rs. 353 only.
Some seller, somewhere will book a proIit in this case Irom your buy order execution.
Hence, an investor will have to understand that one oI the Ioremost parameters in
speciIying on a stop loss and a trigger price will have to be its chances oI execution
ability as and when the situation arises. A two-rupee bandwidth between the trigger and
stop loss might be suIIicient Ior execution Ior say a script like InIosys or Wipro. These
vital parameters oI volatility bands oI scripts will always have to be kept in mind while
the Stop loss concept.


Generally there are two types oI trading have been done in India which is given below:

On line Trading / E Broking / Modern Method

Trading through Brokers / Traditional method oI Share trading.



Trading Through Brokers / Traditional ethod of
Share Trading :-

Trading in the stock exchange can be conducted only through member broker in
securities that are listed on the respective exchange. Investors intending to buy/sell
securities in the exchange have to do so only through a SEBi registered broker/sub-
broker. This is very popular concept in India Ior Share Trading beIore the Iacilities like
on line trading introduce.

Both the exchange has switched over Irom the open outcry trading system to Iully
automated computerized mode oI trading knows as Bolt and Neat. In this system, the
broker trade with each other through the computer network. Buyers and sellers place
their orders speciIying the limits Ior quality and price. Those that are not matched
remain on the screen and is opened Ior Iuture matching during the day / settlement. AIter
the advent oI computerized trading the speed oI trading has increased multi-Iold and a
Iuller view oI the market is available to the investors.
To start dealing with broker you have to Iill a Iorm with the broker. AIter Iill all the
Iormalities the Iirm gives you a User Id no like a bank a/c no. through which you can
enter in the transaction with broker. Broker will gives all the which one investor needed.






32
































33

ABOUT KARVY


INTRODUCTION


KARVY, is a premier integrated Iinancial services provider, and ranked among
the top Iive in the country in all its business segments, services over 16 million
individual investors in various capacities, and provides investor services to over
300 corporate, comprising the who is who oI Corporate India. KARVY covers the
entire spectrum oI Iinancial services such as Stock broking, Depository
Participants, Distribution oI Iinancial products like mutual Iunds, bonds, Iixed
deposit, Merchant Banking & Corporate Finance, Insurance Broking,
Commodities Broking, Personal Finance Advisory Services, placement oI equity,
IPO`s, among others. Karvy has a proIessional management team and ranks
among the best in technology, operations, and more importantly, in research oI
various industrial segments.

Karvy consultant
As the Ilagship company oI the Karvy Group, Karvy Consultants Limited has
always remained at the helm oI organizational aIIairs, pioneering business
policies, work ethic and channels oI progress.
Having emerged as a leader in the registry business, the Iirst oI the businesses that
KARVY ventured into, It has now transIerred this business into a joint venture
with Computer share Limited oI Australia, the world`s largest registrar. With
advantage oI the depositories in the Indian capital market and it has created
relationship in the registry business. Karvy believe that they were best positioned
to venture into that activity as a Depository Participant. They were one oI the
early entrants registered as Depository Participant with NSDL (National
Securities Depository Limited), the Iirst Depository in the country and then with
CDSL (Central Depository Services Limited). Today, It service over 6 lakes
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, it has transIerred this business to Karvy
Stock Broking Limited (KSBL), their associate and a member oI NSE, BSE and
HSE.







34


iles stones of Karvy Consulting




Karvy --- Early Days
The birth oI Karvy was on a modest scale in 1981. It began with the vision and
enterprise oI a small group oI practicing Chartered Accountants who Iounded the
Ilagship company .Karvy Consultants Limited. It started with consulting and
Iinancial accounting automation, and carved inroads into the Iield oI registry and
share accounting by 1985. Since then, They have utilized their experience and
superlative expertise to go Irom strength to strength.to better their services, to
provide new ones, to innovate, diversiIy and in the process, evolved Karvy as one
oI India`s premier integrated Iinancial service enterprise.





35
Thus over the last 20 years Karvy has traveled the success route, towards building
a reputation as an integrated Iinancial services provider, oIIering a wide spectrum
oI services. And they have made this journey by taking the route oI quality
service, path breaking innovations in service, versatility in service and
Iinally.totality in service.
Their highly qualiIied manpower, cutting-edge technology, comprehensive
inIrastructure and total customer-Iocus has secured Ior them the position oI an
emerging Iinancial services giant enjoying the conIidence and support oI an
enviable clientele across diverse Iields in the Iinancial world.
Their values and vision oI attaining total competence in their servicing has served
as the building block Ior creating a great Iinancial enterprise, which stands solid
on their Iortresses oI Iinancial strength - their various companies.
With the experience oI years oI holistic Iinancial servicing behind them and years
oI complete expertise in the industry to look Iorward to, They have now emerged
as a premier integrated Iinancial services provider.
And today, they can look with pride at the Iruits oI their mastery and
experience comprehensive Iinancial services that are competently segregated to
service and manage a diverse range oI customer requirements.


Business Focus:

The Iocus oI the business is the Customer Customer service, Customer education,
Customer support, Customer relations and last but not the least Customer acquisition.
Trade execution transparency, timely settlements, risk monitoring and superior service
shall have topmost priority, in the best interests oI all concerned








36
MISSION

Our mission is to be a leading, preferred service
provider to our customer, 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



CORE VALUE

Customer satisIaction through
O Providing quality service eIIectively and eIIiciently
O 'Smile, it enhances your Iace value is a service quality stressed on
periodic customer service Audits
Maximization oI stakeholder value
Success through Teamwork, integrity and People


Board of Directors
Of
KARVY GROUP


Chairman : Mr. C Parthasarathy


Managing Director : Mr. M Yugandhar


Director : Mr. M S Ramakrishna







37



W Karvy Consultants Limited
Depository Participant Services - NSDL / CDSL
IT enabled services

W Karvy Computershare Limited
TransIer agency services Ior corporates & mutual Iunds
Registrar Ior IPO

W Karvy Investor Services Limited
Merchant Banking
Corporate Finance

O Karvy Securities Limited
Distribution oI equity & other Iinancial products
Member - Hyderabad Stock Exchange
The Finapolis Personal Finance Advisory Services

O Karvy Stock Broking Limited
Secondary Market Trading
Member - National Stock Exchange & Trading on BSE
Member oI the WDM segment on NSE
Research support
!ublications of Karvy


Karvy- THE FINAPOLIS

COMTRADE
! !r ri in nc ci ip pa al l A Ac ct ti iv vi it ti ie es s
O Of f
'KARVY GROU!






38

Karvy !rofile

Head Office












iddle East - Representative Office















Bhavnagar Branch












KARVY HOUSE
46, Avenue 4, Street No.1,
Banjara Hills,
Hyderabad - 500 04,
Andhra !radesh, India.
Tel : +91-40-212454
Fax : +91-40-211968
Email: mailmanager@karvy.com
Karvy Stock Broking Limited
50, 5th Floor
Al usalla Towers
Khalid Bin Waleed Road (Bank
Street)
Bur Dubai, UAE
!hone: +9714-978752/5
Fax: +9714-97845
Contact !erson: r Siddharth
Razdan
Email : sid_razdon@karvy.com
134/135-
Madhavdarshan,Waghawadi
Road,BHAVNAGAR-364002.
Ph. 0278-252005-6
Email : samir.vora@karvy.com
bhavnagar@karvy.com






39
Organization Chart











Karvy Ltd.
Franchise Branch
Web Dealer Sales Executive Sales Coordinator
Customer Care
Receptionist
Account Head





40
Karvy`s CORE SERVICES

Karvy is one oI India`s leading broking houses providing a complete liIe-cycle oI
investment solution.





















EQUITIES
DERIVATIVES
COMMODITIES

Pesearch ased
Investment AdvIce
Investment and
TradIng ServIces
Integrated 0emat
FacIIIty
TechnoIogy ased
Investment TooIs
TraInIng and
SemInars





41
SWOT
AnoIysis





42
SWOT Analysis

Strength:-

21 years oI research and broking experience
services over 16 million individual investors in various capacities
provides investor services to over 300 corporate
6 lakes customer accounts in this business spread across over 250
cities/towns in India.
Dedicated, Intelligent and Loyal staII
A positive image in the existing

Weakness:-

Less awareness in the market.
Time consuming process Ior account opening, resolving the problems oI the
customers, etc. A Service quality is not maintained accordingly how they are
promoted


Opportunity:-

Large potential market Ior delivery and intra-day transactions.
Open interest oI the people to enter in to stock market Ior investing
Attract the customers who are dissatisIied with other brokers & DPs. An indirect
opportunity generated by the market Irom its bullishness.

Threats:-

Decreasing rates oI brokerage in the market. A Increasing competition against
other brokers & DPs.
Poor marketing activities Ior making the company known among the customers.
A threat oI loosing clients Ior any kind oI weakness oI the company. a
Indirect threat Irom instable stock market, i.e., low/no proIit oI Karvy's clients
would lead them to go Ior other broker/DP.











43
SERVICES OF KARVY"









Other Services:

Dial-n-Trade
Mutual Fund
Commodity
Derivative
Depository Participants
Distribution oI Financial Services
Advisory Services
Private Clients Group
Research Based Advices
PortIolio Management System

OIIline
Karvy`s Services
Online
Other Services





44
OFFLINE

OIIline A/c is the A/c Ior the investors who are

not Iamiliar with the use oI computer.
The A/C opening charges applied(One time)
For 1
st
Year Demat A/C
is Free, On 2
nd
Year AMC
charge is applicable.



Online Account

Requirement for online trading

O Linked Bank Account
O Broking Account
O Linked Depository Account


Benefits of online trading

O Freedom Irom paperwork
O Instant credit and transIer
O Trade Anywhere
O Timely Advice and access to research
O Real-time portIolio tracking
O AIter hour orders
O Market Alerts
O Instant quotes












45




DnT (Dial- n -Trade)

Dial n Trade is the name oI the phone-trading Iacility oIIered by Karvy.

A call center wholly dedicated to order placement / conIirmation.


Easy 2-step process Ior order placement.

Step1. Enter your PHONE ID
Step2. Enter your TPIN ID

On successIul dial, call gets transIerred to call center executives.

Karvy Stock Broking Limited, one oI the cornerstones oI the Karvy ediIice, Ilows Ireely
towards attaining diverse goals oI the customer through varied services. Creating a
plethora oI opportunities Ior the customer by opening up investment vistas is backed by
research-based advisory services. Here, growth knows no limits and success recognizes
no boundaries. Helping the customer create waves in his portIolio and empowering the
investor completely is the ultimate goal.
Stock Broking Services
It is an undisputed Iact that the stock market is unpredictable and yet enjoys a high
success rate as a wealth management and wealth accumulation option. The diIIerence
between unpredictability and a saIety anchor in the market is provided by in-depth
knowledge oI market Iunctioning and changing trends, planning with Ioresight and
choosing one’ options with care. This is what we provide in our Stock Broking
services.
We oIIer services that are beyond just a medium Ior buying and selling stocks and
shares. Instead we provide services which are multi dimensional and multi-Iocused in
their scope. There are several advantages in utilizing our Stock Broking services, which
are the reasons why it is one oI the best in the country.
We oIIer trading on a vast platIorm; National Stock Exchange, Bombay Stock Exchange
and Hyderabad Stock Exchange. More importantly, we make trading saIe to the
maximum possible extent, by accounting Ior several risk Iactors and planning
accordingly. We are assisted in this task by our in-depth research, constant Ieedback and





46
sound advisory Iacilities. Our highly skilled research team, comprising oI technical
analysts as well as Iundamental specialists, secure result-oriented inIormation on market
trends, market analysis and market predictions.
This crucial inIormation is given as a constant Ieedback to our customers, through daily
reports delivered thrice daily; The Pre-session Report, where market scenario Ior the day
is predicted, The Mid-session Report, timed to arrive during lunch break, where the
market Iorecast Ior the rest oI the day is given and The Post-session Report, the Iinal
report Ior the day, where the market and the report itselI is reviewed. To add to this
repository oI inIormation, we publish a monthly magazine “ Karvy; The
Finapolis”, which analyzes the latest stock market trends and takes a close look at
the various investment options, and products available in the market, while a weekly
report, called “ Karvy Bazaar Baatein”, keeps you more inIormed on the
immediate trends in the stock market. In addition, our speciIic industry reports give
comprehensive inIormation on various industries. Besides this, we also oIIer special
portIolio analysis packages that provide daily technical advice on scripts Ior successIul
portIolio management and provide customized advisory services to help you make the
right Iinancial moves that are speciIically suited to your portIolio.
Our Stock Broking services are widely networked across India, with the number oI our
trading terminals providing retail stock broking Iacilities. Our services have increasingly
oIIered customer oriented convenience, which we provide to a spectrum oI investors,
high-net worth or otherwise, with equal dedication and competence.
But true to our spirit, this success is not our Iinal destination, but just a platIorm to
launch Iurther enhanced quality services to provide you the latest in convenient,
customer-Iriendly stock management.
Over the years we have ensured that the trust oI our customers is our biggest returns.
Factors such as our success in the Electronic custody business has helped build on our
tradition oI trust even more. Consequentially our retail client base expanded very Iast.
To empower the investor Iurther we have made serious eIIorts to ensure that our research
calls are disseminated systematically to all our stock broking clients through various
delivery channels like email, chat, SMS, phone calls etc.
Our Ioray into commodities broking has been path breaking and we are in the process oI
converting existing traders in commodities into the more organized mainstream oI
trading in commodity Iutures, both as a trading and risk hedging mechanism.

In the Iuture, our Iocus will be on the emerging businesses and to meet this objective, we
have enhanced our manpower and revitalized our knowledge base with enhances Iocus
on Futures and Options as well as the commodities business.







47



UTUAL FUNDS




eaning:

A mutual Iund is a pool oI money that is invested according to a common investment
objective by an asset management company (AMC). The AMC oIIers to invest the
money oI hundreds oI investors according to a certain objective - to keep money liquid
or give a regular income or grow the money long term. Investors buy a scheme iI it Iits
in with their investment goals, like getting a regular income now or letting the money
accumulate over the long term. Investors pay a small Iraction oI their total Iunds to the
AMC each year as investment management Iees.



Commodity

Organized Iutures market evolved in India by the setting up oI "Bombay Cotton Trade
Association Ltd." in 1875. In 1893, Iollowing widespread discontent amongst leading
cotton mill owners and merchants over the Iunctioning oI the Bombay Cotton Trade
Association, a separate association by the name "Bombay Cotton Exchange Ltd." was
constituted. Futures trading in oilseeds was organized in India Ior the Iirst time with the
setting up oI Gujarati Vyapari Mandali in 1900, which carried on Iutures trading in
groundnut , castor seed and cotton. BeIore the Second World War broke out in 1939
several Iutures markets in oilseeds were Iunctioning in Gujarat and Punjab.

There were booming activities in this market and at one time as many as 110 exchanges
were conducting Iorward trade in various commodities in the country. The securities
market was a poor cousin oI this market as there were not many papers to be traded at
that time.
Introduction:

Everybody talks about mutual Iunds, but what exactly are
they? Are they like shares in a company, or are they like
bonds and Iixed deposits? Will I lose all my money in
Iunds or will I become an overnight millionaire? Big
questions that get answer in just Iive minutes.





48

The era oI widespread shortages in many essential commodities resulting in inIlationary
pressures and the tilt towards socialist policy, in which the role oI market Iorces Ior
resource allocation got diminished, saw the decline oI this market since the mid-1960s.
This coupled with the regulatory constraints in 1960s, resulted in virtual dismantling oI
the commodities Iuture markets. It is only in the last decade that commodity Iuture
exchanges have been actively encouraged. However, the markets have been thin with
poor liquidity and have not grown to any signiIicant level.
A three-pronged approach has been adopted to revive and revitalize the market. Firstly,
on policy Iront many legal and administrative hurdles in the Iunctioning oI the market
have been removed. Forward trading was permitted in cotton and jute goods in 1998,
Iollowed by some oilseeds and their derivatives, such as groundnut, mustard seed,
sesame, cottonseed etc. in 1999. A statement in the Iirst ever National Agriculture
Policy, issued in July, 2000 by the government that Iutures trading will be encouraged in
increasing number oI agricultural commodities was indicative oI welcome change in the
government policy towards Iorward trading.

Secondly, strengthening oI inIrastructure and institutional capabilities oI the regulator
and the existing exchanges received priority. Thirdly, as the existing exchanges are slow
to adopt reIorms due to legacy or lack oI resources, new promoters with resources and
proIessional approach were being attracted with a clear mandate to set up demutualized,
technology driven exchanges with nationwide reach and adopting best international
practices.

Most oI the existing Indian commodity exchanges are single commodity platIorms; are
regional in nature, run mainly by entities which trade on them resulting in substantial
conIlict oI interests, opaque in their Iunctioning and have not used technology to scale
up their operations and reach to bring down their costs. But with the strong emergence
oI: National Multi-commodity Exchange Ltd., Ahmedabad (NMCE), Multi Commodity
Exchange Ltd., Mumbai (MCX), National Commodities and Derivatives Exchange,
Mumbai (NCDEX), and National Board oI Trade, Indore (NBOT), all these
shortcomings will be addressed rapidly. These exchanges are expected to be role model
to other exchanges and are likely to compete Ior trade not only among themselves but
also with the existing exchanges.

Derivative

The emergence oI the market Ior derivative products, most notably Iorwards, Iutures and
options, can be traced back to the willingness oI risk-averse economic agents to guard
themselves against uncertainties arising out oI Iluctuations in asset prices. By their very
nature, the Iinancial markets are marked by a very high degree oI volatility. Through the use
oI derivative products, it is possible to partially or Iully transIer price risks by locking-in
asset prices. As instruments oI risk management, these generally do not inIluence the
Iluctuations in the underlying asset prices. However, by locking-in asset prices, derivative
products minimize the impact oI Iluctuations in asset prices on the proIitability and cash
Ilow situation oI risk-averse investors.





49


Depository Participants



The onset of the technology revolution in financial services ndustry saw the
emergence of Karvy as an electronic custodian registered with NationaI
Securities Depository Ltd (NSDL) and CentraI Securities Depository Ltd
(CSDL). Karvy set standards enabling further 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 serviced.
Offering a wide trading platform with a dual membership at both NSDL and
CDSL, we are a powerful medium for trading and settlement of dematerialized
shares. We have established live DPMs, nternet 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 our demat division including technological
enhancements like SPEED-e, make our response time quick and our delivery
impeccable. A wide national network makes our efficiencies accessible to all.






50

About KARVY:
Depository participant with both NSDL and CDSL
Over 4.6 lacks accounts being serviced from over 5 cities.
Among the Top Depository Services providers in the country
Web enabled service to provide state of the art service delivery


Distribution of FinanciaI Products

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 FinapoIis , 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.





51


About KARVY:
Investments
Equity - Primary and Secondary
Fixed Income - Primary and Secondary
Fixed Deposits
Mutual Funds
Loan Products
Housing and Car Loans
Personal and Professional Loans
Loan Against Securities
Insurance
Life : LIC, Amp Sanmar, HDFC Standard, ICICI Prulife, Om
Kotak, Metlife, Tata AIG, Birla Sunlife
General : New India, Tata AIG, Reliance, Royal Sundaram

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

Private CIient Group
This specialized division was set up to cater to the high net worth individuals and
institutional clients keeping in mind that they require a different kind of financial
planning and management that will augment not just existing finances but their





52
life-style as well. Here we follow a hard-nosed business approach with the soft
touch of dedicated customer care and personalized attention.
For this purpose we offer a comprehensive and personalized service that
encompasses planning and protection of finances, planning of business needs
and retirement needs and a host of other services, all provided on a one-to-one
basis.
Our research reports have been widely appreciated by this segment. The
delivery and support modules have been fine tuned by giving our clients access
to online portfolio information, constant updates on their portfolios as well as
value-added advice on portfolio churning, sector switches etc. The investment
recommendations given by our research team in the cash market have enjoyed
a high success rate.


Portfolio Management System
With the Karvy Team Managing Your PortIolio, you can be assured that your
investments are in saIe hands

We Iollow a multi-disciplined approach incorporating quantitative analysis, Iundamental
analysis and technical analysis. This multi-pronged approach enables us to provide risk-
controlled returns Ior you.

Right Irom choosing the combination oI stocks most suitable Ior you based on your risk
appetite to monitoring their movements and discussing them with you at special events.
























53

























A Ac ch hi ie ev ve em me en nt ts s
Among the
Top
Depository
!articipants
Amongst the
Top 5
Stock Brokers
(.5% market
share)
Largest Network
of Branches &
Business
Associates

ISO 9002
Certified
operations
By DNV
Adjudged as
one of
The Top 50 IT
Users in India
Full fledged
IT driven
operations
Largest
Independent
Distributor for
Financial
!roducts
Amongst Top 10
Investment
Bankers
Indias #1
Registrar
& Securities
Transfer Agent





54
























55

ARKETING DE!ARTENT

The main aim oI marketing activities at Karvy is that the customer should get enough
guidance to join the company and how he can get the best service than any other
stockbroker. There is an oIIicer Ior handling the marketing activities Iollowed by two
executives and it is not limited to them but the other people are also having some
responsibilities to increase the no. oI clients and retain them by providing them the
services needed by them.
There are many services those are designed such that the speciIic target segments oI the
customers are covered and the products are positioned in the minds oI customers as the
best one in India. The services are as given below:
Karvy is India's leading national network oI stock-broking outlets. It is having the largest
retail distribution chain in India. Karvy is not only a share-broking Iirm, but it avails oI
various services and other Iinancial products to its clients.

1. OIIline Trading Iacility
2. Online BSE and NSE executions (through BOLT, i.e. BSE Online Trading and
NEAT, i.e. National Exchange Automated Trading)
3. Free access to investment advice Irom Karvy`s Research team.
4. Depository services: Demat and Remat transactions
5. Derivatives trading, i.e. Futures and Options (through NEAT F&O)
6. Internet based online trading.
7. Other investment products: Mutual Funds, RBI Bonds, Insurance, etc.





56
7 !S OF KARVY


(1) !RODUCT

!roduct Variety
Karvy oIIers 3 types oI online trading accounts Ior its customers specially
designed according to their volume in share trading. Those 3 varieties are:
For retail investors
For high net worth investors with large and active equity portIolio who need to
monitor and action swiItly
For high net worth investors dealing in derivative market.

"uality
User Friendly, attractive & colourIul Website.

Design
The website oI Karvy namely www.karvy.com has been specially designed to
Iacilitate its users to buy and sell shares in an instant at anytime and Irom
anywhere they like. The site is user Iriendly allowing even a layman to easily
operate without any hassles.

Features:
Karvy`s product comes with the Iollowing Ieatures:
Trade execution in a Iraction oI a second!
Single Screen Trading Terminal
Real time streaming quotes. Price watch on any number oI scripts.
Hot keys similar to Brokers Terminal.
Customized Alerts based on Multiple Parameters.
Back up Facility to place trades on Direct Phone Lines.
Intra day charts, updated live, tick-by-tick.
Instant Order\ Trade ConIirmation in the same window
Live margin, position, marked to market proIit & loss report.
Competitive Brokerage.
Flexibility to customize screen layout and setting.





57
Facility to customize any number oI portIolios & watch lists.
Facility to cancel all pending orders at one click.
Facility to square oII all transactions at one click.
Top Gainers, Top Losers, and Most Active, updated live.
Index inIormation; index chart, index stock inIormation live.
Market depth, i.e. Best 5 bids and oIIers, updated live Ior all scripts
Online access to both accounts and DP.
Live updated Order and Trade Book.
Details oI pending executed and rejected orders.
Online access to Customer Service.
128 - bit super saIe encryption.
Facility to place aIter market orders
Online Iund transIer Iacility Irom leading Banks
Online intra-day technical calls.
Exhaustive database oI over 2000 companies
Historical charts and technical analysis tools.
Last but not the least, ideas that help you to make money!!!

Services
Karvy oIIers its customers, depository services and trade execution Iacilities Ior equities,
derivatives and commodities backed with investment advice tempered by decades oI
broking experience. The teams oI its dedicated analysts are constantly at work to track
perIormance and trends.

Dial-n-trade is also an exclusive service available to all Karvy customers Ior trading in
shares via the telephone. On dialing the toll Iree number 1800-425-1900 and on entering
the customers TPIN number, the customer will be directed to a telebroker who will buy or
sell shares Ior him.





(2) !RICE

Less !rice

On Line OII Line
One time
registration Iee
750 300
Minimum brokerage
Charges Quarterly
Nil Nil







58
Brokerage
Karvy in its online business charges brokerage as Iollows:
- In equity Market:
On Trading: 0.1 (Total brokerage) On Delivery: 0.5
- In Derivative Market
On Trading: 0.12 (Total brokerage) On Delivery: 0.1

Service Tax
12.24 on Brokerage.
Custody Charge
Re. 1 per script held per month.
Discounts
For investors with High Net worth, there are slabs in brokerage rates.

!ayment !eriod
The transaction settlement date in the securities market is T 2 days i.e.
the payment oI the transaction taken place has to be made within two days
oI its occurrence.
Credit terms
Karvy allows its customers to trade up to 4 times i.e. by keeping 1/4th
margin with them.




() !ROOTION


Online share trading is totally a new concept in Indian Market. Generally investor
doesn`t like to come out Irom conventional way oI share trading. Karvy has
introduced this product in. The concept and Product are still new in the market.
ThereIore the company has undertaken extensive promotion campaign to create
awareness about the product. Karvy adopts the Iollowing tools Ior promoting the
product







59

Advertising
Company advertises its product through TV media on channels like CNBC, Print
Media-in leading dailies and outdoors media. Besides attractive and colorIul
brochures as well as posters are used giving Iull details about the product.
Mails are sent to people logging on to sites like moneycontrol.com and rediII.com.
Also, stalls are opened up now and then at places where prospective customers can
be approached.


!rints and Broadcast Advertisement

Karvy gives advertisement oI the product oI on-line account through various
media, through advertisement in various newspapers in diIIerent web site like
3iinIotech.com, monster.com.

Motion picture.

Brochure and leaIlet

Karvy also distribute some brochure to the person who is interested in online
trading.

Poster and booklets (value line)

Video Tapes

Give a live demonstration

Karvy also provide the Iacility to give live demonstration oI the product online
between the market hours between 10:30 am to 3:00 pm in the big companies like
Reliance, ONGC, Hotel Galaxy, Rotary Club Irom where they except crowd to
see the live demo oI online trading service or Irom they can except a more
customer or investor who can understand this product.


Sales !romotion
Karvy participating in trade Iairs like PCEXPO-2003

Exhibition.

Karvy also provide some scheme which help to increase in sale the product.








60

Sales Force
The Company has
an aggressive sales Iorce, which is given incentives, based on their sales. The sales
Iorce is given intensive training continuously.


Seminar
The Company also arranges seminar in corporate world Ior creating awareness
about the product. Recently, it had organized Ior a seminar in ONGC, IIM.


Direct arketing
Company emphasizes more on direct marketing, as many people are still not aware
oI this new way oI smart trading. For this, the company recruits and trains sales
representatives so as to explain the product and solve customer queries related to the
product. This is the most eIIective way to communicate the three-in-one concept
which company oIIers.


Telemarketing
This is another promotional tool company is using to boost up its sales. For this, the
company collects the database oI the people belonging to diIIerent proIessional
segments.


4) !LACE

Channels
Karvy uses various channel alternatives to reach to its customers through
Internet
Tele Marketing
Retail Share Shops
Franchisee Owners
Sales Force







61


Coverage














Locations
Karvy has the large chain oI retail share shops in India. It has 238 OIIices located in
162 cities all over India like Pune, Thane, Chennai, Kolkata, Banglore, Luckhnow,
Darjleeng, Kanpur, Baroda, Midnapore, Surat, Delhi, Gaziabad, Hydrabad,
Allahbad, etc.










Ground Network in India
Presence in 162 cities with a network oI over
238 oIIices

Over 450 NSE & BSE trading terminals
spread across the country

Around 6,000 active business associates
across the country

Over 3000 employees comprising oI
proIessionals & management graduates






62

(5) !EO!LE

Employees
Selection: Employees are selected on the basis oI their experience and
qualiIication as applicable to the job.
Training: Intensive training is provided to the employees till a week once
they join and even at times required aIter that.
Motivation: The employees are motivated through incentives they are
provided.

Research Team
karvy has a team oI dedicated analysts who have years oI working experience in the
industries that they track, and a proven track record in using their knowledge oI the
investment science to deliver results.



Customers,
The heart oI karvy is really treated loyally like the kings. The customer care,
which comprises oI highly trained executives are operating it Irom 9:30 to 11:00
p.m.



(6) !HYSICAL EVIDENCE

Office Environment:
The ambience within the oIIice is what can make the customer Ieel comIortable in
trading. The cordial and Iriendly atmosphere at oIIice is like a Iull time motivation
Ior the employees.

Interiors and Infrastructure:
The oIIice is well Iurnished and has 14 computer terminals on which tick-
by-tick price movements oI the securities are displayed.










63

(7) !ROCESS

In this service organization, the ways in which the customers receive delivery oI
the service constitutes the process. Here, the process involves adding value` or
utility` so that the customers get Iull satisIaction Ior the money spent by them.


Here the process begins Irom the step when customer wants to open e-invest
account and ends when his account is actually activated.


All Indian residents and NRI are eligible to avail this service.


Customers can open a karvy e-invest account by Iilling a single application Iorm.

This Iorm includes 9 agreements like
. Main Iorm with customer details
. Agreement between karvy and client in respect oI the ONLINE-
INVESTMENT SUPPORT service oIIered.
. Agreement between the Depository Participant and the client Ior providing the
transaction statement through Internet.
4. Irrevocable power oI attorney
5. Agreement between the DP and the person seeking to open an account with
the DP.
6. Maintenance oI client`s account on a running account bases by KSBL.
7. Agreemen4 giving the right oI lien on the credit balance oI client in NSE
trading.
8. Agreement giving the right oI lien on the credit balance oI client in BSE
trading.
9. Risk disclosure document (cash segment)













64
Customer Satisfaction (Theoretical Framework):


The only way towards leading the market and Iighting tough with the competitors is:
Customer SatisIaction.





-PHILIP KOTLER

Just when you thought customer satisIaction was surpassed only by exceeding
expectation, customer satisIaction rules are changing again. New horizons will alter how
we think about customer satisIaction and will shape Iuture oI homebuilding. Here is a
preview oI what is to come.

Stage : Customer Satisfaction

Customer satisIaction is the Iirst stage because it seeks only to meet customer
expectations and avoid disappointment. The problem is that as you drive customers to
lower their expectations, you drive them Iurther away Irom what they actually want.
Meeting or even exceeding customer expectations may not provide them with everything
they want, but it is a requirement Ior moving to the stages beyond customer satisIaction.

Stage : Customer Fulfillment

'Customers . just want exactly what they want, says Joseph Pine in his book, The
Experience Economy. Since customers can not always get everything they want, they buy
Irom the builder who minimizes the diIIerence between what they want and what they
expect to get termed Customer SacriIice.`

The IulIillment strategy aims to reduce customer sacriIice by promising them what they
want and backing the promise up with superior delivery capabilities. The winning
builders in the customer IulIillment marketplace will have the capability to eIIiciently
deliver exactly what customers want while providing extraordinary value.

Stage : Customer Delight

Pleasant surprises delight customers. Surprises create transIorming experiences unique to
the builder who creates them. Breakstone Homes, a Florida luxury home builder, is
opening an elaborate 14,000 square Ioot custom home design center. The center`s goal is
to amaze customers with designs and material possibilities that allow customers to create
homes that surpass the home oI their dreams. Breakstone is creating customer-
transIorming experiences impossible Ior their customers to duplicate elsewhere.

It is no Ionger enough to sutisfy customers; you
must deIight them|






65
Surprises during the homebuilding process delight customers oI Shea Homes San Diego,
an NHQ winner. Every customer contact is treated as an opportunity to create a rewarding
relationship. 'We get inside the mind oI the customer to anticipate their needs beIore they
even know what they want. Says Diane Rivera. Like a well-scripted play, Shea
employees provide pre-planned individual attention to customers with predictable results.
At scheduled intervals construction personal contacts keep customers inIormed on the
progress oI their home and answer questions. Shea University seminars impress
customers with unexpected attention to quality deals. 11 months aIter closing customers
are surprised when Shea calls to schedule and inspection to Iind any items that they can
Iix while the home is under warranty.

It is likely that you can Iind examples oI customer satisIaction, IulIillment, and delight in
your company. Use the experience to create new ideas that continue to drive your
company beyond customer satisIaction.

Customer Touch with KARVY





66
INDUSTRY ANALYSIS USING PORTER`S 5 FORCES
MODEL

Error




















SUPPLIERS

Web maintainers
NSCL
CSDL
NSE
BSE
MCX
NCDEX

SUBSTITUTES

Mutual Funds
Insurance
Bank FD


BUYERS

Small Investors
Franchise/Business
Partners
HNI`s
MF Companies
HUF
Institutional
Investors

POTENTIAL ENTERANT

Investmart
Various Banks
Geojit
Cipher
UTI Securities Ltd.
ReIco Group Ltd.
IDBI Capital Mkt. Services Ltd.

COMPETITORS

ICICI Web Trade Ltd
Sharekhan Securities.
Kotak Securities Ltd
India Bulls
HDFC Securities Ltd
Marwadi Finance Ltd






67
. SUPPLIERS

NSE & BSE are playgrounds where common an investor trade through stock broking
houses, Ior which they have to take permission Irom NSE/BSE.

NSE & BSE are under the purview oI SEBI, that`s why stock broking houses like
KSBL, have low bargaining power. But here there is one advantage that NSE/BSE
have i.e. they cannot go Ior Iorward integration.

MCX & NCDEX are stock exchanges which trade in commodities and derivatives.
Here again stock broking houses have to Iollow rules and regulation oI the same.

Web maintainers are companies which maintain web sites & technical aspects oI the
same. Here stock broking houses like KSBL can have more bargaining power due to
stiII competition among web maintaining companies.

Web maintainers are companies who make and maintain soItware`s Ior stock broking
houses. II say Ior example stock broking houses switches over to other web
maintainers then that company cannot understand the mechanisms oI soItware`s. So it
is quite high switching cost.

. BUYERS
There are various types oI investors who trade through stock broking houses like
KSBL, which includes investors like small investors, medium net worth investors,
business partners, institutional investors and mutual Iund companies.
Here the bargaining power oI stock broking houses depends on how big the investor
is.
So here we can say that bargaining power oI stock broking houses is high in case oI
small investors & HUF.
While its moderate in HNI/MNI`s and business partners.
While its less in case oI mutual Iund companies and institutional investors.
There is competitive buzz in stock broking industry, competitors are oIIering low
brokerage and best services with added Ieature. So switching cost is pretty much less.
So the buyer can easily switch over to competitors product.










68

. Entry Barriers
Huge capital: - Capital is necessary not only Ior Iixed Iacilities but also Ior
customer`s credit and absorbing start up losses. To start a stock broking house, one
needs huge capital Ior technology up gradation and skilled manpower.

Technology: - Technology Ior stock broking houses is liIe saving device. Stock
broking requires huge capital to make their products user Iriendly, which in turn
requires capital to employ skilled manpower. Thus, technology could be one oI the
entry barriers.

Regulatory Constraints: - Obtaining a license is a tedious job Ior a stock broking
house. It should comply with the regulation oI the governing bodies like SEBI,
NSDL, etc. For a stock broking houses to plunge into the stock broking industry, it
needs to have some kind oI Iinancial background and expertise. Thus, regulators
constraints could be an entry barrier.

Experience curve: - The core competency in this industry is the services which
are provided to the end-users and the research based activities which includes 'TIPS,
Iundamental as well as technical script analysis. Also the most important thing which
helps already established Iirms is-'TRUST which people would be having on Iirms
like Karvy, SSKI, India InIoline, etc. this is very diIIicult Ior new companies to
imitate.

Network:- the 'Reach to the customer is the key Iactor in the industry. The
network oI the companies like Karvy Motilal Oswal, Sharekhan, ICICI is very
eIIicient and spreded all over India. It will take time Ior a new entrant to establish
such a huge network (e.g. Marwadi), which say that, Network can come up as most
diIIicult entry barrier to overcome.

Expected Retaliation: - Whenever a new player comes in the industry, the old
companies have an option to reduce the prices oI their product. This kind oI practice
is called expected Retaliation which is also possible in this industry in terms oI less
brokerage rates and reduced account opening charges. E.g. beIore the entry oI so
many new companies

4. COMPETITORS
The company is Iacing the competition Irom local as well as national level
players. The local players provide Iacility Ior oII-line trading while the national
players like Sharekhan, ICICIdirect.com and www.kotakstreet.com, HDFC Security
provide online trading services.
There are also other big names like Indiabulls, India InIoline and Marwadi
encircles the company Iorm both the sides by providing online and oII-line trading
with competitive services.






69



5. POTENTIAL ENTRANT

Few entrants, which may take away the share oI current players.

The potential entrant in Bhavnagar city like Invest mart, Jeojit and Cipher which
are coming in near Iuture.

Nationalized banks are also thinking to enter in this Iield by tying up with broking
houses. E.g. Bank OI Baroda.

6. SUBSTITUTES
Here substitutes are such instruments which can be used instead oI investing in
shares

The instruments like Bank FD, insurance, mutual Iunds are the substitutes.

II the use oI this instruments increase this may be disadvantage Ior the stock
broking houses.
The companies and banks which are having these instruments can plunge into this
industry.
Banks are planning to jump while others may come.





70
CO!ETITIVE ANALYSIS


Follower:
The Iollowers are just blindly Iollowing the other player which is leader and
challengers.
The players like Sharekhan, Motilal Oswal, HDFC Securities, and Kotakstreet
are the Iollowers.

LEADER:
Karvy has highest no. oI Sub Brokers (15000) in all over India.
Largest registrar to issue : ~ 700 issues
ICICIdirect.com is a leader in the online account which is having 1, 24,000
account in the country.
While in oIIline account Sharekhan is leading with 64,000 oIIline accounts


NICHER:
ICICIdirect.com and Kotakstreet.com are the two stock broking houses which
are Iocusing only on online investors.

CHALLENGER:
Sharekhan, Kotakstreet and Indiabulls come under this head.
Indiabulls is also challenging with low brokerage rates and class one service.
















71
SEVEN 'S ODEL












































Style

Systems

Structure

Strategy

Skills

Staff


Super ordinate





72
STRUCTURE:
Karvy is Ilexible in terms oI making temporary structural changes to cope up
with speciIic strategic tasks without any hassles. II need arises, the top
management can assign the role to any oI its employees which it considers
capable and skillIul.

STRATEGY:
Karvy believes not only in developing the strategies but also in its successIul
execution.

SYSTES:
This constitutes oI all the training and development systems, estimating budgets
and the accounting system oI Karvy.

STYLE:
Style reIers to all the symbolic actions undertaken by top managers oI Karvy and
its inIluence on the subordinates.

STAFF:
Karvy values its employees as its assets and thereIore careIully trains and
motivates them by giving them incentives at regular intervals. Talented
employees are assigned as mentors and given real responsibility and moved into
higher positions.

SKILLS:
The term skills reIer to those activities organizations do best and Ior which they
are known. Karvy is known Ior its timely advice (suggestions/tips), which it
caters to its customers and it boasts oI 70-90 strike rates in booking
recommendations.





73


SU!ERORDINATE GOALS:
This reIers to guiding concepts, values and aspirations that unite an
organization in some common purpose. It provides the customers the best service
as it believes in customer satisIaction and retention.





74

























75
FINANCE DE!ARTENT

Like Blood is the most important in our body, in business Finance is the blood oI any
business. Finance is needed Ior all the activities like production or services as well as
their distribution. The Iinance department directly inIluences all the Iunctions oI the
other departments. Also Iinance has to give equal importance to all departments. Finance
is that administrative area or set oI administrative Iunction in an organization, which
relate with the arrangements oI cash & credit so that they organization may have the
means to carry out its objective as satisIactorily as possible. Karvy has special
accounts department Ior separate calculation oI pay-in and pay-out oI Iunds according to
the client's ProIit/Loss. Finance management is done at Karvy is done by managing the
stocks in the Demat accounts and Iunds in the margin & trading accounts

Finance is the liIeblood oI an organization to continue its activities and the Iinance
management at Karvy can be divided into two major parts viz. DP (depository
participation) and Accounts management, which are shown in the Iigure given below.

Finance





DP is treated as a separate department at Karvy and is covered in the back oIIice
management in the organization structure. In simple words, DP means providing the
Iacility to the clients Ior managing the stock bought/sold by them. DP covers two major
terminologies viz. settlements and the auctions which is a part oI managing Demat
account. Settlements as deIined by SEBI (Securities Exchange Board of India) are
T2, currently and it means that the Demat account oI the clients are prone to be
suIIicient Ior selling a script with no debit at all, i.e., the account must have the sold
DP
Account





76
Amount oI stock have to IulIill the settlement aIter two days Irom trade-day. The
settlements Ior Day-Traders is not needed because they buy/sell stocks in that
particular day, only the delivery trades are needed to be settled because iI you sell
1000 shares oI, say SAIL then your account must have the stock beIore you sell it or
it must be there in your Demat beIore the next day's trading begins (market opens).
Generally, the timings are 9:30 and 3:00 as a deadline Ior the client and he must
provide the stock Ior giving a delivery to the buyer. The chart shows the total
transaction between two clients.



The chart shows the process that the request Ior selling and buying passes through
the DPs oI the respective clients and Iinally the exchanges like Marwadi becomes the
controlling intermediary Ior the delivery oI stocks and this process is done in two
days. Nowadays, as banks are becoming Iast Ior E-Fund TransIer (EFT) and Phone-
banking is getting more popularity, SEBI is thinking to make the Iinancial market
oI India to have a maximum speed oI transactions just like the other nations in the
world and proposing Ior Tl settlement scheme but the system is not enough
competent Ior that thing. But soon or later we will have such a settlement system in
India, as said by Mr. J. N. Bajpai, chairman oI SEBI.
The client, iI not capable oI providing the delivery oI say, 1000 shares oI SAIL then
the Auctions are initiated by the exchanges and the client has to pay Ior the price
prevailing in the market with 4-5 penalty. The penalty can go on maximum to 20
more than the market price oI the sold stock. Generally, it is known as a buying
auction and a same kind oI auction is Ior selling the stock Ior which the buyer was
proved unable to pay the price is carried out by exchange, known as the selling
auction. And a debit or credit note is provided in the respective case oI auction to the
clients, i.e., Ior buying auction debit note is given on the T4 basis and in case oI
selling auction the credit note is given on T5 basis. There are two types oI
auctions called as Internal auctions & Market auctions, the internal auctions are
deIined as the auctions carried out between the other shops oI Karvy and market
auctions are those as explained earlier, the auction carried out in the market..
This is all about settlements but now switch to Iunds management or accounts
management at Karvy. The accounts are diIIerent that is the margin a/c Ior deposits oI
the client and trading a/c Ior which ProIit/Loss are settled. The collection oI Iunds
Irom the clients who had a debit balance or made a loss are made on the next day oI
DP (Karvy)
C E
DP(anyone)
C
The Settlement between two Clients





77
trading and the payments to the proIiting traders are made aIter two days oI trading
because the cheques are received Irom H/O and then pay-out is done and Pay-in is as
explained that amounts to be taken Irom the clients.
In this way, accounts are managed but in case iI the client is unable to pay, the deposit
Irom the margin a/c is cut down to the payments and in case iI a client is having a credit
balance in F&O trading though he had a debit balance in cash-NSE & BSE trading, a
JV request is sent to H/O Ior totaling the three balances. The main aim Ior accounts
management is that the clients must have a credit or no debit on the next day.
The DP services provided by Karvy are Ialling under the regulation oI NSDL
(National Securities Depository Limited) and CDSL (Central Depository Services
Limited), organizations governed by SEBI to regulate the depository services in the
interest oI the investors. So the Iinancial market in India is governed by Ministry oI
Iinance under which two major bodies viz. SEBI & RBI are covered and under RBI the
banks and other Iinancial institutions are covered while SEBI covers the exchanges,
NSDL & CDSL and the whole DP service providers with the brokers to the investors at
the lower end oI the Iinancial market.
In this way we have gained a meaningIul knowledge about India's Iinancial market and
its structure Irom this training at Karvy. In this way, the Iinance Iunction is carried out
at Karavy by Iollowing the guidelines given by SEBI. And the company is a private
limited one with its own policies Ior disclosing its Iinancial statements, so we are not
able to give any Iigures Ior showing the Iinancial position oI the company.

Function of Finance Department

Raising Find

Allocation oI Fund

Receivable

Insurance

Salary





78













79

HUAN RESOURCE DE!ARTENT

Human resource is the crucial resource that a company can use to grow with the
work or the employees. HRM activities at Karvy start Irom induction to the
speciIic job training and are done by H/O at Hyderabad. H/O takes a written test and
selection interview Ior Iilling up vacancies in branches but the recruitment is done
by the branch itselI and the selection is perIormed by H/O Irom the screened
applicants.

Any new recruit is Iirstly inducted to the company and sent to T & D department that
is covered under HRD and T & D programmers makes employees aware about all the
activities/jobs within the department he/she is to be recruited. Suppose iI, I would be
recruited Ior Iinance department then the Iinance related employees are known to
me with their work proIiles, that is, what they really do?

Then the speciIic job training is provided at H/O and the person has to keep in touch
with the concerned department at H/O on internet because he/she has to solve many
conIlicts arising in the investor's mind and to have an up-to-date inIormation
regarding the procedures and any new Iacilities or policies to resolve the problems oI
the clients. It is a must Ior each employee because the employee is the people by
whom the company gets its customers and retains them.

HRP (Human Resource Planning), HRIS (Human Resource InIormation System),
Recruitment & Selection, Career planning and development, Assessment &
development oI employees Ior PerIormance appraisal, etc. activities oI managing the
HR at Karvy is maintained in a way to meet the requirements.

The corporate culture at Karvy is maintained in such a way that the people are
helpIul to each other and eager to get the work done as soon as possible with a
cooperative thinking. An additional Rs. 10000 is provided Ior each outlet oI Karvy to
motivate its employees by perIormance appraisal and also the heads oI each
departments and braches has to go through a 360
6
perIormance appraisal Ior
maintaining the consistency in growth oI the company. In the end we can say that
the human resource oI Karvy is a best managed and used Ior the continuous growth
and development oI the company Ior its Iuture plans to be achieved time-to-time.















80

Confidentiality Agreement

On joining Karvy it is imperative Ior all employees to sign and abide by a
conIidentiality agreement, which is legally binding.

It is an agreement stating both during and aIter employment
all data pertaining to any businesses involving Karvy is to
be kept conIidential and protected and not to be shared with
anyone. InIormation relating to the company's business,
dealings, methods, appointments, practices, transactions,
designs and processes or aIIairs is oI substantial value and
shall be treated as being conIidential, whether or not it is
individually identiIied as conIidential. It is the subject oI
reasonable eIIorts to maintain its secrecy and is being
provided and disclosed to you solely Ior use in connection with your employment by
the company.

This agreement also binds employees to uphold all ethical practices espoused by the
company.

KARVY`S massage to all members

This handbook has been designed to communicate to our team the various Human
Resource (HR) policies/practices that we are trying to institutionalize in our
organization.

This handbook disseminates inIormation on all the KSBL (Karvy) policies,
procedures, beneIits and responsibilities oI the employees. The policies have been
designed with a Iocus on introducing market aligned HR practices at Karvy while
meeting the needs oI individual employees and addressing their concerns.

This handbook is not an agreement or contract oI employment and thereIore need not
be construed as a contract. The management oI Karvy reserves the right to modiIy
this handbook Irom time to time at its sole discretion.

This handbook is Ior internal circulation only. We would request you to read,
understand and comply with all the provisions oI this handbook. II you need any
clariIications or Iurther inIormation on any aspect oI this handbook, you can get in
touch with your immediate superior or the HR team.

We welcome you to the Karvy Iamily and hope your association with us is mutually
EXCITING, FUN FILLING and CHALLENGING!!







81
KARVYS Belief and Expectations

Our vision at Karvy is "to empower the investor to make better investment decisions
through quality service and superior advice."

Karvy believes in and promote a culture that:
Stimulates the employees' drive to excel
Nurture their entrepreneurial spirit by providing them exposure to challenging
work opportunities and imparting autonomy to Iunction eIIectively
Support the employees to deliver by incorporating practices aimed at
Employee development/skill acquisition
Enhancing transparency and trust, being non-discriminative to any
practice/procedure/system
Establishing norms towards enIorcing discipline in the organisation as
regards work etiquettes
Promotes collaboration and team spirit amongst the employees
Acknowledges and rewards individual and team contribution through appropriate
rewards, recognition and compensation
Build a sense oI ownership across the organisation Ior adherence to risk and
compliance procedures amongst all employees and channel partners.


What Karvy Expect from their team?

In our industry, relationships with clients are highly critical. Developing customer
Iocused solutions and managing their expectations eIIectively and delighting them is
the key to our success. Karvy believes that an Engaged & Committed workIorce is
indispensable Ior high quality customer service.

Karvy is in an industry that is governed by stringent regulations and non-
compliances can lead to Iinancial loss and loss oI goodwill. They expect there team
to Iunction in tandem with the organization and support the management to inculcate
a strong discipline across the organization

At Karvy we believe in having a strong perIormance-oriented culture. We are
convinced that this is the best way to encourage employees to set high perIormance
standards and goals that are tracked, and perIormance that is evaluated to decide the
rewards.

Karvy strongly believe in employee development and growth. In this competitive
environment, Karvy expect there employees to be abreast oI the external changes and
take initiatives to adopt the new changes. As part oI there HR initiatives, they will
identiIy training needs, design appropriate training programmes and conduct them on
regular basis.






82
JOINING FORALITIES

Karvy welcomes all employees and is conIident that this
association will be mutually enriching and challenging. It is
essential Ior the HR team to keep record oI your personal and
proIessional inIormation to enable speedy processing oI
inIormation and planning relating to areas such as tax and medical
insurance as well as allowing us to assist you in the time oI
emergency.

In this regard we request all new employees to please Iurnish HR with the Iollowing
inIormation. The documentation needed Ialls into three primary categories: personal
inIormation, joining report and other Iorms.



!ersonal Information

For the personal record oI the employee the Iollowing documents should be
submitted to the HR team on the day oI joining:
Duly completed Application Form
Two passport size photographs
ProoI oI date oI birth
Copy oI educational certiIicates: graduation/post graduation/diplomas/NCFM
certiIicates (wherever applicable)
Relieving certiIicate Irom the previous employer, iI applicable
ProoI oI last drawn salary
Medical examination reports
Bank account details
Insider Trading Agreement (only Ior designated employee)
ConIidentiality Agreement











83

Joining Report

In addition the employee is required to Iill out a Joining Report as per the Iormat
attached in the annexure.


Other Forms

The Iollowing Iorms/agreements also need to be completed:
O Medi-claim insurance application Iorm
O Provident Fund transIer/application Iorm
O Provident Fund nomination Iorm
O Gratuity nomination Iorm
O Accident Insurance nomination Iorm
O Tax estimate/Savings declaration Iorm


Induction:
Induction Iorms an integral part oI Karvy's culture. The
induction programmes are designed with the Iollowing
objectives:
O Provide an overview oI the company's business
and product portIolio.
O Enable the new employee to understand the work
culture and processes/systems.
O Provide an opportunity to interact with his/her superiors/colleagues and
enable him to understand them better.
During induction, employees are:
O Provided their own workspace
O Given a copy oI this Employee Handbook
O Introduced to assignments related to their role








84

Induction Process
The Iunction heads along with the HR team designs the induction programme. The
duration oI the induction programme varies Irom two days to a week depending upon
the role on the new joiner. The induction programme in the company covers three
broad areas:

I. About Karvy

Introduction to Karvy: vision, business, products and clientele
Organisation structure: key Iunctions and their accountabilities, Iunction
heads
IT systems and policies

II. HR philosophy and practices

Karvy values
Overview oI HR policies, systems and practices
Overview oI risk & compliance practices

III. About the job

Key responsibilities and expectations oI the job
Goal setting and perIormance measurements


Leave and Holiday

At KSBL we have established a set oI leave rules that are
legally compliant and that provide Ior reasonable leave
requirements oI employees, giving them the opportunity
to
Maintain a work-liIe balance.




Leaves at KSBL

KSBL provides the Iollowing types oI leaves/holidays:
Holidays
Privilege leave
Maternity leave
Paternity leave





85
eave accounting year

The year Ior calculation oI leave would be the same as the Iinancial yearApril 1st
to March 31st.

Pro rata adjustments will be made to bring entitlements in line with this.
The current leave policy will be valid up to 31st March 2007 and the revised policy
that is listed below will be eIIective 1st April 2007.
Detailed Guidelines

A. Holidays
The company will declare a list oI 12 holidays every year based on the holidays
declared by the exchanges, bank holidays and regional Iestivals. Please contact your
Iunction head or branch head Ior the current list.

B. Classification of leave & eligibility
Leave type No of days (annual)
a. Privilege leave 25 working days
b. Paternity leave 2 working days
c. Maternity leave 12 weeks

a. !rivilege leaves (!L)
Eligibility - All conIirmed employees
- All employees on probation/trainees will be eligible Ior one
working day leave per
month. On conIirmation, the leave balance will be updated on a
prorated basis.
Accumulation 15 days per year, up to maximum 45 days
Encashment Privilege leave can be encased only at the time oI retirement or
resignation. The leave balance up to maximum oI 45 days will be
encased as per the basic salary at the time oI encashment and all
excess leave will lapse.

b. !aternity leave (!L)
Scope For all male employees. Leave taken Ior the birth oI Iirst two
children.
Eligibility Two working days
Accumulation Not applicable
Encashment Not applicable





86
Leave planning and application

KSBL encourages employees to plan their leave careIully in order to meet the needs
oI the employees and the company. You must Iill out the Leave Application Form
when requesting time oII, which must be signed and approved by your
manager/supervisor. Employees are encouraged to actively communicate leave plans
and details to their supervisors so that all team members can adjust their schedules.
The company will try at all times to meet any reasonable requests Ior leave; however
consideration oI your co-workers and any existing Leave oI all types availed in the
month must be updated on the leave card. Till leave cards are provided, an e-mail
with the approval oI leave by the immediate manager must be sent to HR and Payroll
Ior easy tracking and updating in monthly payroll.


Leave Between Holidays

The company does not permit its employees to take leave
prefixed and suffixed to the holidays.

For instance iI a holiday is on Friday and a weekly oII on Sunday, then the employee
is not supposed to take leave on Saturday. In case the employee takes leave on
Saturday, then all three days, i.e. Friday, Saturday and Sunday, will be considered as
leave.


Leave Extensions

The company does not encourage extensions oI leave. They will be granted only iI
the employee communicates such an intention in writing only in unIoreseen
circumstances at the discretion oI the management.


Leave Without !ay

Any leave availed in excess oI the entitlement will be treated as leave without pay
and proportionate salary will be deducted Ior the same. The company does not
encourage employees to take leave without pay. The leave without pay can be
waived oII only in unIoreseen circumstances at the discretion oI the management





87
OTHER BENEFITS

Karvy contribute towards enhancing their employees' and their
Iamilies' liIe by extending beneIits that are oI relevance and
importance to their employees.

I. Employee Marriage Gift Policy

We believe that our employees are part oI a large Karvy Iamily. Just as employees
are an integral part oI all the developments and celebrations oI Karvy, we too would
like to be a part oI one oI the most important event in the liIe oI our employee
Marriage.

II. Medi-claim Policy
Karvy provides Medi-claim cover to all employees. The detailed inIormation on the
policy, relevant processes and the TPA (Third Party Administrator) appointed by the
company is attached in the annexure.

Coverage and limits
The Company bears the cost oI insurance premium Ior all employees as per
Iollowing limits:
Monthly CTC Coverage
Up to Rs25,000 per month Rs100,000
Above Rs25,000 per month Rs150,000

Employees have the option oI covering their dependents under this policy Ior any
amount not exceeding the limit Ior the employee; however the cost oI the same will
have to be borne by individual employees.

III. Term Insurance Policy
Karvy provides term insurance cover (death in case) to all employees. The details oI
the coverage are as mentioned below:

Annual CTC Coverage
Up to Rs100,000 Rs200,000
Up to Rs300,000 Rs500,000
Up to Rs800,000 Rs1,000,000
Up to Rs1,500,000 Rs2,000,000
Above Rs1,500,000 Rs4,000,000





88

Term of Employee

!robation

All regular Iull-time employees will undergo a six-month probation period as
speciIied in the appointment letter. The probation period helps the organization to
assess the employee's on-the-job perIormance and his cultural Iit with the
organization.

Either party may give 15 days' Iormal notice oI separation oI employment at any
time during probation.


Confirmation

Completion oI the probationary period should not be construed as conIirmation till
such time that the conIirmation review process is completed.

The employee's immediate superior at the conclusion oI the probation period shall
conduct a Iormal perIormance review Ior conIirmation. The perIormance review
shall include selI-Ieedback, perIormance review by the managers with speciIic
suggestions Ior improvement.

An oIIicial letter will be issued in case oI conIirmation. In case the perIormance is
not satisIactory, the probation period can be extended Ior three months. The
conIirmation appraisal Iormat is attached in the annexure.

Either party may give a minimum oI 30 days' Iormal notice oI separation oI
employment at any time aIter conIirmation.



Transfer !olicy

TransIers become essential in the spate oI growing business requirements. To meet
them appropriately, the Company may decide to transIer any employee to any
location based on the business requirements. With the purpose to Iacilitate the same,
it is essential to have a transIer policy in place. It is necessary Ior the company to
assist employees in this process.

All employees oI the organization will be covered under this policy. The employee
will be communicated in writing regarding his / her transIer and other relevant
inIormation i.e. reporting authority, work responsibilities etc





89

ode of travel for self and family

Fare Ior selI, spouse and the company on producing the tickets will reimburse two
dependent children at actuals. The mode oI travel remains the same as per
employees` eligibility in the Travel Policy.


!ost-transfer expenses

The employee and his / her Iamily will be eligible Ior Hotel stay at the new location
as per eligibility under the Travel policy. The total period oI hotel stay post transIer
with Iamily will not exceed 5 days.


Transport of Goods

The employee will be eligible Ior reimbursement oI cost oI one truckload oI personal
belonging on actual Irom his current location to the transIerred location. However,
the employee is required to submit quotations Irom minimum two transporters and
needs to have pre-sanction Ior the expense. Transport allowance will include
packing, loading and unloading charges and insurance premium. The insurance
premium should not exceed Rs.10,000.

In case oI Iunction heads / branch heads / Managers, the company will reimburse
additional cost oI transportation oI one car on actual. However, the employee is
required to submit estimated cost and needs to have pre-sanction Ior the expense.


Temporary Transfer

II an employee is deputed to any other location/ oIIice Ior a minimum period oI one
month and not exceeding six months, it will be considered a temporary transIer.

An employee on temporary transIer will be eligible Ior a monthly Deputation
Allowance equivalent to 25 oI his current CTC and the same will be paid along
with the monthly salary.

Any temporary transIer exceeding six months will be considered as permanent
transIer and all beneIits associated with temporary transIer will cease to be
applicable.









90
!ersonal Conduct

Karvy`s business is dependent on there reputation and the level oI trust that is
reposed in us by our customers. However this calls Ior a very high inclination
towards adherence to regulations and being ethical in all our dealings. They believe
each and every employee's behavior needs to reIlect our philosophy. The onus is on
each and every member to reIrain Irom any illegal, dishonest or unethical conduct
and report to the management any incidents oI malicious nature occurring around
him.


Employee Responsibilities

The job perIormance and personal conduct oI each employee directly aIIect the
image and reputation oI Karvy. Employees are required to observe the Iollowing
guidelines to maintain ethical standards:
Ensure there is no theIt, embezzlement, misappropriation oI Iunds, Ialse
entries in any book report or statement with intent
To deIraud and IalsiIy the expense accounts is a cause Ior immediate
dismissal.
It is the responsibility oI each employee to report to the management any
knowledge that a crime has been or will be committed. Not reporting is a
cause Ior immediate dismissal. A client's conIidential inIormation must not be
divulged to third parties except with proper authority Irom the client and the
immediate superior.
An employee will not discuss nor enter into agreements with competitors
concerning Karvy's dealings, prices/services etc.
Karvy`s physical properties, inIormation and inIluence will not be used Ior
the private advantage oI any employee or other person.
Outside activities must be acceptable and compatible with the employee's
identity with Karvy. This includes the prohibition oI business and personal
investments, and outside employment, any oI which would create a conIlict
oI interest.
Employees must not accept Irom or give to clients and suppliers personal
giIts; or accept bequests, commissions or Iees oI any nature Irom clients; or
borrow Irom clients or suppliers.












91


Recruitment & Selection process

Give the advertisement
Receiving application
Shortlist the candidate (who are qualified)
Interview call
Interview
Selection of candidate
Offer letter
1oining the organization






92

an !ower !lanning

Employee oI Karvy (Bhavnagar Branch)

Branch Manager
Web Dealer
On line Dealer
Off line Dealer
Commodity Dealer
Marketing 6
Customer Care
Sales Coordinator
Receptionist
Account Department
Office boy

------------------









93










94







95
Conversion !rocess
The main aim oI it is to make proIit with customer satisIaction. The conversion oI
Inputs, works as the Karvy earn brokerage Irom the customers. The proIits are
generated Irom getting a higher return on the invested amount oI money than the
amount payable to the customers. The process is Iacilitated by a centralized
computer system in which the data is stored and recovered Ior the whole INDIA
and it is having the CPU at the H/O in Hyderabad. Karvy is regulating the
brokerage rates all over India by keep watch on each transaction done Irom the
branch oIIice. The data oI a customer will be stored in the central computer and
all Iacilities such as bills, credit/debit reports etc. are provided by that computer to
all customers on-line on the Internet.
The conversion process is also Iacilitated by some adjustments to the inputs and
then the random Iluctuations are also handled in the process and lastly the
monitoring oI the process is done and a Ieedback is given to do the adjustments
Ior the process as indicated in the Iigure given.
Outputs
Outputs are those services generated by Karvy with the help oI the inputs and using
the conversion process. These services are as listed in the Iigure below.







96









Quality
Reliability
Flexibility
Creditability
Dependability
EIIiciency







Process Capacity Facility Vertical Integration InIrastructure
Automation Maximum size, Supplier Plan and
structure
Centralization possible Location, control, Work Iorce
Regulation oI serving Focus on Customer Quality control
Operation capability locating serving control, R & D, T & D
Service center
SpeciIicity




Operations strategies are implemented in Karvy as shown in the chart given above and
the main points oI consideration are EIIiciency, Dependability, Quality and
Flexibility.

The points demand a Iacility mission that is made up oI process, capacity, Iacilities,
vertical integration, and inIrastructure Iacilities provided to get the desired outputs as per
the plan.
Operations Strategy at KARVY
Facility Mission
Operation strategy at KARVY





97
Transaction cycle











































Placing Order
Settlement oI
trades
Decision to
trade
Trade
Execution
Clearing oI
Trades
Funds or
Securities Transaction
Cycle





98
!RODUCTION TO DERIVATIVES
Introduction to derivatives
The emergence oI the market Ior derivative products, most notably Iorwards, Iutures and
options, can be traced back to the willingness oI risk-averse economic agents to guard
themselves against uncertainties arising out oI Iluctuations in asset prices. By their very
nature, the Iinancial markets are marked by a very high degree oI volatility. Through the use
oI derivative products, it is possible to partially or Iully transIer price risks by locking-in
asset prices. As instruments oI risk management, these generally do not inIluence the
Iluctuations in the underlying asset prices. However, by locking-in asset prices, derivative
products minimize the impact oI Iluctuations in asset prices on the proIitability and cash Ilow
situation oI risk-averse investors.
Derivatives Defined
Derivative is a product whose value is derived Irom the value oI one or more basic
variables, called bases (underlying asset, index, or reIerence rate), in a contractual
manner. The underlying asset can be equity, Iorex, commodity or any other asset. For
example, wheat Iarmers may wish to sell their harvest at a Iuture date to eliminate the risk
oI a change in prices by that date. Such a transaction is an example oI a derivative. The price
oI this derivative is driven by the spot price oI wheat which is the "underlying".
Example :-
A very simple example oI derivatives is curd, which is derivative oI milk. The price oI curd
depends upon the price oI milk, which in turn depends upon the demand, and supply oI milk.
See it this way. The price oI Reliance Triple Option Convertible Debentures (Reliance
TOCD) used to vary with the price oI Reliance shares. And the price oI Telco warrants
depends upon the price oI Telco shares. Do American depository receipts/ global
depository receipts oI ICICI, Satyam and InIosys traded on stock exchanges in the USA and
England have their own values? No. They draw their price Irom the underlying















99




Shares traded in India. Consider how the value oI mutual Iund units changes on a day-today
basis. Don't mutual Iund units draw their value Irom the value oI the portIolio oI securities
under the schemes? Aren't these examples oI derivatives? Yes, these are. And you know
what, these examples prove that derivatives are not so new to us. NiIty options and Iutures,
Reliance Iutures and options, Satyam Iutures and options etc are all examples oI derivatives.
Futures and options are the most common and popular Iorm oI derivatives. In the Indian
context the Securities Contracts (Regulation) Act, 1956 (SC(R)A) deIines "derivative" to
include -
1. A security derived Irom a debt instrument, share, loan whether secured or
unsecured,
risk instrument or contract Ior diIIerences or any other Iorm oI security.
2. A contract, which derives its value Irom the prices, or index oI prices, oI
underlying
securities.
Derivatives are securities under the SC (R) A and hence, the regulatory Iramework under the
SC (R) A governs the trade in derivatives.
History of Derivatives
The derivatives markets has existed Ior centuries as a result oI the need Ior both users and
producers oI natural resources to hedge against price Iluctuations in the underlying
commodities. Although trading in agricultural and other commodities has been the
driving Iorce behind the development oI derivatives exchanges, the demand Ior products
base on Iinancial instruments - such as bonds, currencies, stocks and stock indiceshave
now Iar outstripped that Ior the commodities contracts.
India has been trading derivatives contracts in silver, gold, spices, coIIee, cotton and oil etc
Ior decades in the gray market. Trading derivatives contracts in organized market was legal
beIore Morarji Desai's government banned Iorward contracts. Derivatives on stocks were
traded in the Iorm oI %0and ,3/in unorganized markets. Recently Iutures contract in
various commodities was allowed to trade on exchanges. In June 2000, National Stock
Exchange and Bombay Stock Exchange started trading in
Futures on Sensex and NiIty. Options trading on Sensex and NiIty commenced in June
2001. Very soon thereaIter trading began on options and Iutures in 31 prominent stocks in
the month oI July and November respectively. The market lots keeps on changing Irom time
to time. The minimum quantity you can trade in is one market lot.





100




Derivative as a term conjures up visions oI complex numeric calculations,
speculative dealings and comes across as an instrument which is the prerogative oI a Iew
smart Iinance proIessionals`. In reality it is not so. In Iact, a derivative transaction helps
cover risk, which would arise on the trading oI securities on which the derivative is based
and a small investor can beneIit immensely. ~A derivative security can be defined as a
security whose value depends on the values of other underlying variables. Very
often, the variables underlying the derivative securities are the prices of traded
securities

Derivatives and futures are basically of types:
Forwards and Futures
Options
Swaps














Types of Derivatives
DERIVATIVES
Options Futures Swaps Forwards
Commodit
y
Security
Interest
Rate
Currency
Put Call





101





FORWARDS:

A forward contract is the simplest mode of a derivative transaction. It is an
agreement to buy or sell an asset (of a specified quantity) at a certain future time for
a certain price. No cash is exchanged when the contract is entered into.
Illustration: - Shyam wants to buy a TV, which costs Rs 10,000 but he has no cash to
buy it outright. He can only buy it 3 months hence. He, however, Iears that prices oI
televisions will rise 3 months Irom now. So in order to protect himselI Irom the rise in
prices Shyam enters into a contract with the TV dealer that 3 months Irom now he will
buy the TV Ior Rs 10,000. What Shyam is doing is that he is locking the current price oI
a TV Ior a Iorward contract. The Iorward contract is settled at maturity. The dealer will
deliver the asset to Shyam at the end oI three months and Shyam in turn will pay cash
equivalent to the TV price on delivery.

FUTURES:

It is an agreement between two parties to buy or sell an asset at a certain time in the
Iuture at a certain price through exchange traded contracts.
A Future represents the right to buy or sell a standard quantity and quality oI an asset or
security at a speciIied date and price. Futures are similar to Forward Contracts, but are
standardized and traded on an exchange, and are valued, or "Marked to Market daily.
The Marking to Market provides both parties with a daily accounting oI their Iinancial
obligations under the terms oI the Future. Unlike Forward Contracts, the counterparty to
a Futures contract is the clearing corporation on the appropriate exchange. Futures oIten
are settled in cash or cash equivalents, rather than requiring physical delivery oI the
underlying asset. Parties to a Futures contract may buy or write Options on Futures.



O!TIONS:





102

An option is a contract, which gives the buyer the right, but not the obligation to
buy or sell shares of the underlying security at a specific price on or before a
specific date.
Option`, as the word suggests, is a choice given to the investor to either honor the
contract; or iI he chooses not to walk away Irom the contract. There are two kinds oI
options: Call Options and Put Options.

A Call Option is an option to buy a stock at a speciIic price on or beIore a certain date.
When you buy a Call option, the price you pay Ior it, called the option premium, secures
your right to buy that certain stock at a speciIied price called the strike price. II you
decide not to use the option to buy the stock, and you are not obligated to, your only cost
is the option premium.
Put Options are options to sell a stock at a speciIic price on or beIore a certain date. In
this way, Put options are like insurance policies. With a Put Option, you can "insure" a
stock by Iixing a selling price. II something happens which causes the stock price to Iall,
and thus, "damages" your asset, you can exercise your option and sell it at its "insured"
price level. II the price oI your stock goes up, and there is no "damage," then you do not
need to use the insurance, and, once again, your only cost is the premium.
Technically, an option is a contract between two parties. The buyer receives a privilege
Ior which he pays a premium. The seller accepts an obligation Ior which he receives a
Iee.


CALL O!TIONS
Call options give the taker the right, but not the obligation, to buy the underlying shares
at a predetermined price, on or beIore a predetermined date.
Call OptionsLong S Short Positions
When you expect prices to rise, then you take a long position by buying calls.
You are bullish.
When you expect prices to fall, then you take a short position by selling calls.
You are bearish.

!UT O!TIONS

A Put Option gives the holder oI the right to sell a speciIic number oI shares oI an
agreed security at a Iixed price Ior a period oI time.





103
Put OptionsLong S Short Positions

When you expect prices to fall, then you take a long position by buying Puts. You
are bearish.
When you expect prices to rise, then you take a short position by selling Puts.
You are bullish.

CALL OPT!ONS PUT OPT!ONS
!f you expect a fall in price(Bearish) Short Long
II you expect a rise in price (Bullish) Long Short






104
Requirement of Karvy Branch

Infrastructure

Karvy SB/ AP is required to invest in inIrastructure and take care oI the recurring
expenses. The set-up should be as Iollows:

1. Minimum 400 sq. It oI oIIice space
2. Connectivity- BSE, NSE, MSC, NCDEX (details with cost attached)
3. Proper inIrastructure (Latest PC`s, UPS, etc.)
4. At least 2 certiIied and trained dealers to start with
5. At least 5 sales executives to start with

Operations

1. Billing: Centralized billing system where the end client will receive contract oI
Karvy.

2. Certification: For Cash, F&O, Commodity, Internet terminal and Depository
Services operations, you will have to produce the requisite NCFM certiIication.

2. Compulsory DP and digital contract: The client would compulsorily need to
open DP accounts with Karvy with mandatory POA and Digital Contracts.
3.

Risk anagement:

1. 100 risk oI the business is borne by the Karvy SB/ AP
2. Client wise risk monitoring- upIront margins required Ior placing orders
3. Responsibility oI managing client`s risk, collection
4. Payment oI delay pay-in charges in case not borne by client


Compliance:

Business will Iully compliant with the requirements oI regulators- SEBI, Exchanges
1. SEBI/ Exchange registration must to commence the business
2. NCFM certiIication (NSE Cash, F&O, DP and NCDEX)
3. Client registration must beIore trade execution
4. No Third party payments and securities, Cash Transactions, unauthorized transIer oI
Iunds Irom one client to other
5. All marketing and brand norms to be adhered to completely.








105






















106




ETHODOLOGY

Research Objective

The main objective of the study is to analysis the CUSTOMER
BUYING PREFERENCES and their potential market among the
people of Bhavnagar City.

SA!LING DESIGN


Sampling design is one oI the most important aspects where the design must be
appropriate in order to have the desired result. Sampling design includes various aspect
and they are as Iollows:


O Sampling Area : Bhavnagar city

O Sample Population : above 15,000

O Sample Size : 00





ethods:

The method used in the research (survey) is oI probability type as we are unaware
about the results. It can be either oI the side. It is area oI Bhavnagar city under which we
have to conduct the research.






107
The research is based on Convenience Method s. and the take the sample Irom to
various stock broking company.







ERROR

4 Some oI the respondents were not giving the proper attention on the
questioner and they were marking without reading the questions. So
Irom these respondents we were not able to get the proper and accurate
data.

Although to minimize the error eIIect we have removed such type
oI respondent`s responds and not taken them in calculations.

4 Some questions are related to each other so some error may occur due
to the diversiIication oI the meaning.

To minimize the error we made the questionnaire as simple as
possible and avoid multiple questions.

4 Fear oI consequences
To minimize the error we ensure them to keep their identity in
conIidential.























108












RESEARCH DESIGN:



Research : Descriptive & Objective

Data Source : Primary data

Research Method : Survey Method

Research Technique : Questionnaire

Type of
Questionnaire : Structured

Type of Questions : Closed & Open ended
Questions

No of Questions : 11

Place : Bhavnagar city




Data Collection






109
The research is conducted with the help oI questionnaire thereIore the main
source oI inIormation is the response oI the respondents and this can be considered as a
primary method oI collecting the data.





Limitations




Analyst Ability:
Analysis is totally depending on surveyors and analyst ability. So the personal
bias or inability may aIIect the result oI the survey.
Area:
The area was limited to Bhavnagar City only, so we cannot know the degree oI
the literacy outside the city.

The limitations oI the study are as Iollow:

Personal Bias:
Individuals may have personal bias towards
particular investment option so they may not
give correct inIormation and due to which the
conclusion may be derived.





110
O General information



Gender


Male Female
185 15



Gender
92%
8%
male
female


Finding :-

From the research conducted I Iound that there are 92 oI the total who have Iill
question are male. And remaining are Iemale. So we can say it is male dominating
Iield.

Recommendation: -

As per the result we can say that 92 oI the total is male and interested as well as
investing in stock market. They can provide some Iacilities and good environment to
women also. So, that segment also can be covered.









111




Age


21-35 36-50 Above - 50
112 63 25



ge
56%
31%
13%
21-35
36-50
51-65


Finding: -

There are 56 people who belong to age group oI 21-35 and more than 31 are
Irom 36-50 and remaining are the other age group.

Recommendation: -

These means is most oI the investor are oI young age. So company should Iocus
on this age group.





112

Income


50,000-1lacks 1lacks-2lacks Above 2lacks
74 101 25



Income
37%
51%
12%
50,000-1lacks
1lacks-2lacks
aboove 2lacks



Finding :-

From our research nearly 37 people are earning less than 1lacks it has been
Iound that there are 51 people in the income group oI 1lack to 2lacks and and the
reaming are more than 2lacks.

Recommendation: -

The result show that there are almost 63 people whose income Rs. 1 lack and
above. So the company should Iocus on this two income group because they are position
invest there surplus money in various investment pattern available in market.





113

Occupation



ProIessional Pvt. Firm Businessmen Govt. oIIicer Other
32 64 40 30 34



ccupation
32
64
40
30
34
0
10
20
30
40
50
60
70
p
r
o
f
e
s
s
i
o
n
a
l
P
v
t
.

F
i
r
m
B
u
s
i
n
e
s
s
m
e
n
G
o
v
t
.

o
f
f
i
c
e
r
o
t
h
e
r
Series1


Finding: -

All most 67 oI the total is working with either in pvt. Firm or in govt. Iirms or
doing there own business and remaining 33 are proIessional people and might be
student also.

Recommendation: -

From the result, we can predict that people working with Govt. will have Iield
income and people working with pvt. Firm will be having higher pay scale and
businessman who are in one or another business will be knowing the important oI risk as
well as beneIit that can be enjoyed aIter taking risk. So the company must concentrate in
these three groups because they will be potential investor Ior tomorrow.







114



Q. Do you invest your surplus money in saving Instrument?



Yes No
200 0


"1
100%
0%
Yes
No


Finding: -

There are 100 people; those are 200 out oI 200 are regularly investing in various
investing options.

Recommendation: -

As per the result, we can say that company has a whole bunch oI people, who
believes that iI they invests their money in any oI the investment pattern, it will going to
grow and in addition to that they believes that investments are necessary to earn more
money. So Ior these people iI proper inIormation is given to them about the company
product and about share market, they may invest in share market.













115


Q. If YES, Where do you invest your saving?



F.D P.O Insurance M.F Commodity Equity Derivative Other
152 112 117 134 44 156 10 36



152
112
117
134
44
156
10
36
0
50
100
150
200
F
.
D
P
.
O

n
s
u
r
a
n
c
e
M
.
F
C
o
m
m
o
d
i
t
y
E
q
u
i
t
y
D
e
r
i
v
a
t
i
v
e
O
t
h
e
r
Series1


Findings:

People might be investing in more than one investment option. Result also shows
similar trend because they are people who may investing in bank FD or in equity or any
other combination.


Recommendation:

II we look at Iigure, there are many persons investing in bank FD and post oIIice
savings, which reveals that these people believe in Iixed return at a lower risk, but now
days there are increasing number oI people who are investing in insurance, equity and in
mutual Iunds. Still there are many persons who want to have Iixed return on their
investment so the company should explain them about the importance, beneIit iI they
invest in stock market and the return oI investment, which is going to be higher in stock
market than any other.





116
Q. Which stock market would you prefer to carry out your
transaction?



STOCK COMMODITIES BOTH
156 28 16


78%
14%
8%
Stock
Commodity
Both



Findings:


Once there are many options available Ior the people Ior the investment purpose
and there are many exchanges Ior trading. Figure shows that most oI the people trading
with STOCK and their Iigure is nearly about 156 each while remaining preIer
COMMODITIES and BOTH.


Recommendation:


II we look at KARVY, it is providing the Iacility oI investing in all these
exchanges so the company should also Iocus on MCX as well as NCDEX, which are
considered to be emerging markets and its beneIits to the people who are investing in
other options including stock markets so that they can increase their business.





117
Q.4 If you select broker or agent than which broking company selects
you?



Share khan Karvy ICICI Marwadi Kotak security Other
71 55 14 19 25 16



".4
71
55
14
19
25
16
0
20
40
60
80
Share
khan
Karvy CC Marwadi Kotak
security
Other
Series1



Findings:


The result shows that 72 people out oI the total preIer Share khan as their broker
and the almost same Iigure is Ior Karvy also. Next challenger is Kotak Security where
12 people preIer it to trade with it. Remaining are with other companies.


Recommendation:


We can see that Share khan is their (Karvy`s) main competitor, which maximum
number oI people preIerring. And KOTAK Security can come close and can give
challenge.

ThereIore in order to come on the top position, Karvy must provide its existing
customer better services, viable advises because this will increase their Iaith in Karvy.





118
Q.5 What does influence you to invest your amount?


Independently Broker
News
paper Internet Tax consultant
160 129 40 25 46



0
50
100
150
200

n
d
e
p
e
n
d
e
n
t
l
y
B
r
o
k
e
r
N
e
w
s

p
a
p
e
r

n
t
e
r
n
e
t
T
a
x

c
o
n
s
u
l
t
a
n
t
Series1



Findings:


There are diIIerent means oI communication to pass your message to the general
people. With the help oI these means, company can market its products. There are 32
people who preIer broking Iirm Ior their decision making, next comes is the independent
decision makers, 40 out oI total number. Others take their decision with the help oI
news
Channel, news paper as well as tax consultant.


Recommendation:


II the company wants to increase their customer base, the marketing oI the
company`s products should be done in an eIIective manner so that more and more people
come to the broking Iirm Ior their investment.

It should also use news channel, newspaper and Internet medium Ior their product
marketing so that they have more scope oI expanding their business.






119
Q.6 Which style would you prefers most for the trading purpose?


Online OIIline
28 172

".6
14%
86%
Online
Offline




Finding: -

The result shows that the in 172 people mainly preIer most oIIline and 28 people
are preIerred online.




Recommendation: -

There are more people who preIer oIIline trading which on the other hand
increasing company burden books record and Iormality but thereIore in order to reduce
this burden the company should Iocus on online trading it should have easy operating oI
online trading so the customer can easy operate it. And also make them understand about
the beneIit oI online trading like Iast processing, the customer will not have to come
down the oIIline can perIormance his/her transaction Irom anywhere.






120
Q.7 Name of any Stock Broking Company?



















This question was put in the Questionnaire to know the customer`s mindset and
which company they know or whom they like to give Iirst preIerence. This question will
give idea whether they know Karvy or not. The result showed that most oI the people in
Bhavnagar know Share khan very well and next comes is Karvy.

So this is a positive sign Ior Karvy and so the Iirst task is to convince these people
to invest with Karvy. And attract more people


















Share khan
Karvy
India Bulls
Kotak street 4
Marwadi 5
ICICI Direct 6
Angel Broking 7





121


Q.8 Which of these you would like to go for trading in future?



Equity Derivative Commodity
80 75 45


".8
39%
38%
23%
Equity
derivative
Commodity


Findings:


No one can predict the Iuture because it is uncertain. This question was put in the
Questionnaire to know in which market they will invest in Iuture time, because it will
give idea about the people`s mindset. Result showed that there are increasing number oI
people who will invest in commodities as well as Iuture and options. In number it is
around 60 so it is good Ior the company.


Recommendation:


The recommendation can be given to the company is that the company must Iocus
on all the products which are oIIered to its existing customers as well as proper guidance
must be given to potential customers to increase their business.

Also the investment in Commodity and Derivative is saIe as compared to stock
markets and the return is also good Ior the investors.










122



Q.9 How many of your surplus amount do you invest?




0-25 26-50 51-75 76-100
28 90 64 18


14%
45%
32%
9%
0-25 %
26-50 %
51-75 %
76-100 %




Findings:

By observing result, we can say that most oI the people take moderate risk and
invest near about 50, halI oI the surplus amount in stock market. And very less number
oI people takes more risk or wants more return aIter investment more than 75 oI
surplus amount.




Recommendation:

So, every company have try to provide more satisIactory services to customer and
more concentrate to give them good returns against their investment. AIter all every body
want to earn more income Irom their investment and it is possible when they invest more
or total surplus money.





123
$ Which are the constraints that you might consider while
investing?


Risk taking
ability Fund Iacility Return on invt.
Time
Duration
Company invt.
Position
102 75 53 60 24


".10
102
75
53
60
24
0
20
40
60
80
100
120
Risk taking
ability
Fund facility Return on
invt.
Time
Duration
Company
invt. Position
Series1




Findings:

This is probably the most important question oI the questionnaire; the result oI
this question is that most oI the people think oI (RISK TAKING ABILITY) because it is
the most crucial constraint. Next comes is the Iacilities given to them under the Iunds and
also the ROI (return on investment). There are other Iactors also like time duration oI
their investment and Company reputation in the market.


Recommendation:

As we saw it in the results that most oI the people see How much oI risk involve
iI they do investment in any oI the market. So the company must do activities which
yields maximum return so that they take more risk and which cab balance the uncertainty.
They must provide all the possible Iacilities to its customer so that they remain with the
company only and also help in expanding their business. Now a day`s people want
services also and thereIore it must be the main Iocus oI the company because iI not
provided to the people, they are surely going to leave the company.





124


Q. Suggestion________________________________________________________



Finally overall suggestion was asked to the respondents to know what they want
and iI they are already with Karvy then what changes are to be made and whether they
are satisIied with the services oI the company?


The response got Irom them reveals Iollowing points:

1. Return on Investment is must but the risk also should be minimizing at the same
time.

2. No one loves to loose its hard earned money thereIore it should be invested in
saIer place.


3. Services are must Ior them and thereIore the company must also concentrate on
this aspect.

4. Good advisory services, secrecy oI the data given to the company as well as every
people must treated as they all are equal i.e. no biasness.


5. Charges oI the services provided to them should be reasonable and viable.

6. Finally, last but not the least the company should maintain good relations with the
people to have deal Ior a longer period.





125



Karvy has enough number oI branches all over India and thereIore it is a great
advantage Ior the company and the company also planning to expand its network.

Karvy also provides the Iacility oI trading in almost all the exchanges and
thereIore whatever the customer demands the company has in its package.

The company also has a very good research team at its Head OIIice and this is
meant Ior the better working as well as Ior the customer oI Karvy only.

The company also has the advantage oI the existing customers where their level
oI Iaith and their view about the company to the outside world will be a helping hand
Ior the company to expand its business.

Karvy has various products and services in its portIolio, so Ior the people they
have variety oI options to choose Irom, thereIore it should market its product in such
a manner that more and more people come to Karvy and deal with the company.

From the research conducted, that the customer are satisIied with the company
services and there is a competition Irom the Share khan thereIore the company should
regularly check its various departments and make continuous changes required.













ConcIu





126







Reference Books:

Philip Kotler, The Millennium Edition, ~marketing Management, Prentice
Hall of India Pvt Ltd., New Delhi

Cooper, 8
th
edition, ~Business Research Methods, Tata McGraw-Hill
Publishing Company Ltd., New Delhi

K. Aswathapa,
rd
edition ~Human Resource and Personnel Management, Tata
McGraw-Hill Publishing Company Ltd., New Delhi


Websites:

www.karvy/about.asp Dt.-8/07/07
www.bseindia/about.asp
www.nseindia.com
www.mcx.com
www.ncdex.com



ibIiogruphy





127
ANNEXURE


STUDY OF CUSTOMER BUYING PREFERENCE


Name:-


Gender:- Male Female


Age group: - 21-35 36-50 51-65 Above 66


Income:- 50000-100000
100000-200000
2, 00,000 above


Occupation:- ProIessional Businessmen
Govt. Employee Pvt.Firm
Other

Q.1 Do you invest your surplus money in saving Instrument?

Yes No


Q.2 II YES, Where do you invest Your saving?

Bank F.D Equity
Post oIIice
Insurance Derivative
Mutual Fund
Others Commodities

Q.3 Which market would you preIer to carry out your transaction?

STOCK COMMODITIES BOTH








128



Q.4 II you select broker or agent than which broker company select you?


Share Khan Karvy Kotak Street
ICICI Direct Marwadi Other


Q.5 What does inIluence you to invest your amount?

Independently
Broker/Agent
News Papers
Internet
Tex Consultant

Why

Q.6 Which style would you preIer most Ior the trading purpose?

Online OIIline


Q.7 Name oI any 2 Stock Broking Company?

1 2


Q.8 Which oI these you would like to be in Ior trading?

Equity Derivatives Commodity

Q.9 How many oI your surplus amount do you invest?

0-25 51-75
26-50 76-100

Q.10 Which are the constraints that you might consider while investing?

Risk Taking ability Fund Facility Return On Invest
Time Duration Company Investment position

Q.11 Suggestions: